Page 207 - Amata-one-report2020-en

BUSINESS OPERATION AND OPERATING RESULTS CORPORATE GOVERNANCE FINANCIAL STATEMENTS ENCLOSURES

26. Additional charges to Vietnamese government agency

During the fourth quarter of the current year, the subsidiary paid additional delay penalty of

Baht 30 million or VND 22 billion to the central government of Vietnam for the late payment
during the period in which the subsidiary was waiting for the pending decision of the central
government agency regarding the clarification and the waiver of additional penalties.

This additional delay penalty was related to the fact that in 2017 the subsidiary received

a letter from a local Vietnamese government agency for collecting a penalty with respect to
late payment of land rental amounting to Baht 319 million or VND 227 billion. However, the
subsidiary partially paid the penalty of Baht 97 million or VND 69 billion and had sought

clarification by submitting an enquiry letter to the relevant central Vietnamese government
agency with respect to the remittance of land rental, requesting clarification on the effective
period applied in the calculation of the penalty and a waiver of any additional penalties during
the period awaiting clarification. In 2018, the subsidiary received the second letter from the

local Vietnamese government agency, demanding an immediate payment for the
outstanding penalty of Baht 222 million or VND 158 billion. The management of the Company
and its subsidiary decided to pay such penalty to the local Vietnamese government agency.

At that time there was neither notice nor request to pay any additional penalty, until the fourth
quarter of the current year.

After the subsidiary had paid the mentioned penalty, the subsidiary received a letter from the
local Vietnamese government agency that currently the subsidiary has no outstanding

liability with the Vietnamese government agency.

27. Share capital / Premium on ordinary shares

On 24 July 2020, the Board of Directors’ meeting of the Company passed a resolution for
the increase in share capital from the existing registered capital of Baht 1,067 million to Baht
1,150 million by issuing 83 million new ordinary shares with a par value of Baht 1 per share.

The shares are to be allocated to the existing shareholders. On 21 September 2020,
the Company has registered the increase in share capital with the Ministry of Commerce and
received the proceeds of an increase in share capital. The premium on ordinary shares

increased to Baht 1,070 million.
28. Statutory reserve

Pursuant to Section 116 of the Public Limited Companies Act B.E. 2535, the Company is
required to set aside to a statutory reserve at least 5 percent of its net profit after deducting
accumulated deficit brought forward (if any), until the reserve reaches 10 percent of
the registered capital. At present, the statutory reserve has fully been set aside.

Amata Corporation Public Company Limited 54 207