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SISB Public Company Limited and its subsidiaries Review report and interim financial information For the three-month period ended 31 March 2020

Independent Auditor's Report on Review of Interim Financial Information To the Shareholders of SISB Public Company Limited

I have reviewed the accompanying consolidated statement of financial position of SISB Public

Company Limited and its subsidiaries as at 31 March 2020, the related consolidated statements

of comprehensive income, changes in shareholders’ equity, and cash flows for the three-month

period then ended, as well as the condensed notes to the interim consolidated financial

statements. I have also reviewed the separate financial information of SISB Public Company

Limited for the same period (collectively “interim financial information”). Management is

responsible for the preparation and presentation of this interim financial information in

accordance with Thai Accounting Standard 34 Interim Financial Reporting. My responsibility is to

express a conclusion on this interim financial information based on my review.

Scope of Review

I conducted my review in accordance with Thai Standard on Review Engagements 2410, Review of

Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim

financial information consists of making inquiries, primarily of persons responsible for financial and

accounting matters, and applying analytical and other review procedures. A review is substantially

less in scope than an audit conducted in accordance with Thai Standards on Auditing and

consequently does not enable me to obtain assurance that I would become aware of all significant

matters that might be identified in an audit. Accordingly, I do not express an audit opinion.

Conclusion

Based on my review, nothing has come to my attention that causes me to believe that the

accompanying interim financial information is not prepared, in all material respects, in

accordance with Thai Accounting Standard 34 Interim Financial Reporting.

Other Matter

Due to the impact of COVID-19 outbreak situation, the Company has postponed the annual

general meeting of the Company’s shareholders which results in no resolution for the

appointment of the auditor of the Group for the accounting period of 2020 yet. However, the

Board of Director of the Company has a resolution to propose to the annual general meeting of

the Company’s shareholders to appoint me as the auditor of the Group for the accounting period

of 2020. I therefore have conducted my review on the interim financial information for first

quarter of 2020 which is in compliance with the notification of the Capital Market Supervisory

Board (CMSB) No. TorChor. 28/2563 dated 27 March 2020.

Rungnapa Lertsuwankul

Certified Public Accountant (Thailand) No. 3516

EY Office Limited

Bangkok: 15 May 2020

SISB Public Company Limited and its subsidiaries

Statement of financial position

As at 31 March 2020

(Unit: Thousand Baht)

Note 31 March 2020 31 December 2019 31 March 2020 31 December 2019

(Unaudited (Audited) (Unaudited (Audited)

but reviewed) but reviewed)

Assets

Current assets

Cash and cash equivalents 451,393 261,524 217,508 58,545

Current investments 7 - 834,864 - 278,000

Trade and other receivables 4, 5 145,511 56,127 1,600 1,298

Inventories 6 6,724 8,028 - -

Other current financial assets 7 582,214 - 205,000 -

Other current assets 10,282 11,472 1,719 1,194

Total current assets 1,196,124 1,172,015 425,827 339,037

Non-current assets

Restricted bank deposits 1,368 1,368 1,368 1,368

Investments in subsidiaries accounted

for under equity method 8 - - 1,276,463 1,320,336

Investment in joint venture accounted

for under equity method 9 55,139 53,804 55,139 53,804

Investment properties 10 - - 12,590 13,008

Property, plant and equipment 11 1,412,957 1,419,263 99,351 82,049

Right-of-use assets 12.1 411,226 - 25,442 -

Intangible assets 13 10,418 10,068 10,326 9,973

Other non-current assets 43,466 44,143 18,918 19,332

Total non-current assets 1,934,574 1,528,646 1,499,597 1,499,870

Total assets 3,130,698 2,700,661 1,925,424 1,838,907

The accompanying notes are an integral part of the interim financial information.

Consolidated financial statements Separate financial statements


Statements of financial position (continued)

As at 31 March 2020


Note 31 March 2020 31 December 2019 31 March 2020 31 December 2019



Liabilities and shareholders' equity

Current liabilities

Trade and other payables 4, 14 69,333 41,062 10,670 7,906

Current portion of deferred income 451,402 503,504 - -

Current portion of lease liabilities agreements 12.2 11,550 3,024 2,052 -

Current portion of deposits from students 15,810 18,540 - -

Income tax payable 1,468 1,065 - -

Other current liabilities 4,324 3,904 919 653

Total current liabilities 553,887 571,099 13,641 8,559

Non-current liabilities

Deferred income 124,327 133,382 - -

Liabilities under lease liabilities agreements 12.2 480,290 3,723 25,817 -

Deposits from students 58,860 57,660 - -

Provision for decommissioning 12,622 12,530 800 790

Provision for long-term employee benefits 23,112 21,962 8,796 8,434

Deferred tax liabilities 1,265 1,128 35 35

Other non-current liabilities 100 80,284 100 2,196

Total non-current liabilities 700,576 310,669 35,548 11,455

Total liabilities 1,254,463 881,768 49,189 20,014




Statements of financial position (continued)

As at 31 March 2020


31 March 2020 31 December 2019 31 March 2020 31 December 2019



Shareholders' equity

Share capital

Registered

940,000,000 ordinary shares of Baht 0.50 each 470,000 470,000 470,000 470,000

Issued and fully paid up

940,000,000 ordinary shares of Baht 0.50 each 470,000 470,000 470,000 470,000

Premium on preference shares 1,000 1,000 1,000 1,000

Premium on common shares 1,127,018 1,127,018 1,127,018 1,127,018

Retained earnings

Appropriated-statutory reserve 11,200 11,200 11,200 11,200

Unappropriated 267,017 209,675 267,017 209,675

Equity attributable to owners of the Company 1,876,235 1,818,893 1,876,235 1,818,893

Non-controlling interest of the subsidiaries - - - -

Total shareholders' equity 1,876,235 1,818,893 1,876,235 1,818,893

Total liabilities and shareholders' equity 3,130,698 2,700,661 1,925,424 1,838,907

- - - -


Directors


(Unaudited but reviewed)


Statement of comprehensive income

For the three-month period ended 31 March 2020


Note 2020 2019 2020 2019

Profit or loss:

Revenues

Tuition fees and service income 4 275,435 258,698 - -

Rental and services income 4 - - 18,206 41,522

Education equipment income 4 1,312 2,297 - -

Other income 4 9,346 7,643 1,839 3,280

Total revenues 286,093 268,638 20,045 44,802

Expenses

Tuition and service cost 150,918 151,176 - -

Rental and services cost - - 15,045 37,432

Administrative expenses 69,117 74,335 4,706 16,738

Other expenses - 6 - -

Total expenses 220,035 225,517 19,751 54,170

Profit (loss) from operating activities 66,058 43,121 294 (9,368)

Share of profit from investment accounted for under equity method 8, 9 1,335 241 58,975 51,925

Finance cost (7,949) (600) (414) (127)

Profit before tax income (income tax expense) 59,444 42,762 58,855 42,430

Tax income (income tax expenses) 15 (589) (304) - 28

Profit for the period 58,855 42,458 58,855 42,458

Other comprehensive income:

Other comprehensive income for the period - - - -

Other comprehensive income for the year 58,855 42,458 58,855 42,458

Total comprehensive income for the year

Profit attributable to:

Equity holders of the Company 58,855 42,458 58,855 42,458

Non-controlling interest of the subsidiaries - -

58,855 42,458

Total comprehensive income attributable to:

Equity holders of the Company 58,855 42,458 58,855 42,458

Non-controlling interest of the subsidiaries - -

58,855 42,458

Earnings per share 16

Basic earnings per share

Profit attributable to equity holders of the Company (Baht per share) 0.06 0.05 0.06 0.05

Weighted average number of ordinary shares (Thousand shares) 940,000 940,000 940,000 940,000





Statement of changes in shareholders' equity



Total equity Equity attributable

attributable to to non-controlling Total

Issued and Premium on Premium on owners interest of shareholders'

paid-up share capital preference shares common shares Appropriated Unappropriated of the Company subsidiaries equity

Balance as at 1 January 2019 470,000 1,000 1,176,311 21,720 (71,013) 1,598,018 - 1,598,018

Profit for the period - - - - 42,458 42,458 - 42,458

Other comprehensive income for the period - - - - - - - -

Total comprehensive income for the period - - - - 42,458 42,458 - 42,458

Balance as at 31 March 2019 470,000 1,000 1,176,311 21,720 (28,555) 1,640,476 - 1,640,476

Balance as at 1 January 2020 470,000 1,000 1,127,018 11,200 209,675 1,818,893 - 1,818,893

Cumulative effect of change in accounting policy for due to

the adoption of new financial reporting standard (Note 2) - - - - (1,513) (1,513) - (1,513)

Balance as at 1 January 2020 - as restated 470,000 1,000 1,127,018 11,200 208,162 1,817,380 - 1,817,380

Profit for the period - - - - 58,855 58,855 - 58,855

Other comprehensive income for the period - - - - - - - -

Total comprehensive income for the period - - - - 58,855 58,855 - 58,855

Balance as at 31 March 2020 470,000 1,000 1,127,018 11,200 267,017 1,876,235 - 1,876,235

- - - - - - - -

- - - - - - - -


Retained earnings (Deficit)

Consolidated financial statements

Equity attributable to owners of the Company



Statement of changes in shareholders' equity (continued)



Total

Issued and paid-up Premium on Premium on shareholders'

share capital preference shares common shares Appropriated Unappropriated equity

Balance as at 1 January 2019 470,000 1,000 1,176,311 21,720 (71,013) 1,598,018

Profit for the period - - - - 42,458 42,458

Other comprehensive income for the period - - - - - -

Total comprehensive income for the period - - - - 42,458 42,458

Balance as at 31 March 2019 470,000 1,000 1,176,311 21,720 (28,555) 1,640,476

Balance as at 1 January 2020 470,000 1,000 1,127,018 11,200 209,675 1,818,893

Cumulative effect of change in accounting policy for due to

the adoption of new financial reporting standard (Note 2) - - - - (1,513) (1,513)

Balance as at 1 January 2020 - as restated 470,000 1,000 1,127,018 11,200 208,162 1,817,380

Profit for the period - - - - 58,855 58,855

Other comprehensive income for the period - - - - - -

Total comprehensive income for the period - - - - 58,855 58,855

Balance as at 31 March 2020 470,000 1,000 1,127,018 11,200 267,017 1,876,235

- - - - - -

- - - - - -


Retained earnings (Deficit)

Separate financial statements



Cash flow statement



2020 2019 2020 2019

Cash flows from operating activities

Profit before tax 59,444 42,762 58,855 42,430

Adjustments to reconcile profit (loss) before tax to

net cash provided by (paid from) operating activities:

Depreciation and amortisation 39,521 30,165 1,737 18,541

Allowance for doubtful accounts (reversal) 1,440 (497) - -

Reversal of allowance of diminution in value of inventories (38) (16) - -

Unrealised gain on change in value of investment in

other current financial assets (350) - -

Written-off fixed assets - 6 - -

Provision for long-term employee benefits 1,150 967 362 342

Provision other non-current assets 1,000 - 1,000 -

Interest income (2,842) (3,352) (1,335) (1,717)

Shared of profit from investment accounted for

under equity method (1,335) (241) (58,975) (51,925)

Interest expenses 7,541 69 397 6

Profit from operating activities before

changes in operating assets and liabilities 105,531 69,863 2,041 7,677

Operating assets (increase) decrease

Trade and other receivables (92,337) (35,118) (302) 10,541

Inventories 1,342 1,369 - -

Other current assets (225) 4,513 (273) 2,173

Other assets 267 (6,361) 4 (6,585)

Operating liabilities increase (decrease)

Trade and other payables 26,570 19,673 180 (146)

Deferred income (61,157) (20,904) - -

Other current liabilities (2,311) 8,695 266 9,324

Long-term employee benefits paid - - - -

Other non-current liabilities 1,392 4,880 110 1,748

Cash flows from (used in) operating activities (20,928) 46,610 2,026 24,732

Cash paid for interest expenses - 39 - 103

Cash paid for corporate income tax (638) (1,775) (590) (1,767)

Net cash flows from (used in) operating activities (21,566) 44,874 1,436 23,068





Cash flow statement (continued)



2020 2019 2020 2019

Cash flows from investing activities

Cash received from sales of investment in

other current financial assets 591,000 457,000 233,000 297,000

Cash paid for investment in other current financial assets (338,000) (411,380) (160,000) (244,000)

Cash paid for acquisition of investment properties - - - (10,998)

Cash paid for acquisition of plant and equipment (34,969) (18,254) (15,168) (120)

Cash paid for acquisition of intangible assets (505) - (501) -

Dividend received from investment in subsidiary - - 100,000 -

Interest received 4,257 1,674 1,082 993

Net cash flows used in investing activities 221,783 29,040 158,413 42,875

Cash flows from financing activities

Cash paid for lease liabilities (10,348) (1,100) (886) (187)

Net cash flows used in financing activities (10,348) (1,100) (886) (187)

Net increase in cash and cash equivalents 189,869 72,814 158,963 65,756

Cash and cash equivalents at beginning of the period 261,524 367,329 58,545 129,204

Cash and cash equivalents at end of the period 451,393 440,143 217,508 194,960

- -

Supplemental cash flows information:

Non-cash items

Increase in payable from purchase of

building and equipment 1,701 1,105 2,584 14

Increase in payable from lease liabilities 1,015 - - -

Transferaed asset to investment in school - - - (12,759)




1


Notes to interim consolidated financial statements


1. General information

1.1 Corporate information

SISB Public Company Limited (“the Company”) is a public company incorporated and

domiciled in Thailand. Its registered address which is the Company’s head office is at 498/12,

Soi Ramkhamhaeng 39 (Tepleela 1), Pracha Uthit Road, Wangthonglang, Wangthonglang,

Bangkok.

The Company is the license holder of a private school named “Singapore International School

of Bangkok”, located at 498/11, Soi Ramkhamhaeng 39 (Tepleela 1), Wangthonglang,

Wangthonglang, Bangkok, a private school named “Singapore International School

Suvarnabhumi” located at 4/5 Moo 5, Namdaeng- Bang Plee Road, Bang Kaew, Bang Plee,

Samutprakarn, a private school named “Singapore Interenational School Thonburi” located

a t 138 Ratchamontri Road, Khlong Kwang, Phasi charoen, Bangkok and a private school

named “Singapore International School Ekamai” located at 154 Soi Ekamai 14, Sukhumvit

Road, Wattana, Bangkok.

The Market for Alternative Investment (MAI) approved the listing of the ordinary shares of the

Company as securities on the MAI, to be traded from 29 November 2018. The Stock

Exchange of Thailand subsequently moved the securities to be traded on the Stock

Exchange of Thailand, effective from 23 April 2019.

1.2 Coronavirus disease 2019 Pandemic

The Coronavirus disease 2019 pandemic is continuing to evolve, resulting in an economic

slowdown and adversely impacting most businesses and industries. This situation may bring

uncertainties and have an impact on the environment in which the group operates. The

Group’s management has continuously monitored ongoing developments and assessed the

financial impact in respect of the valuation of assets, provisions and contingent liabilities, and

has used estimates and judgement in respect of various issues as the situation has evolved.

1.3 Basis of preparation of interim financial information

These interim financial information are prepared in accordance with Thai Accounting

Standard No. 34 Interim Financial Reporting, with the Company choosing to present

condensed interim financial statements. However, the Company has presented the

statements of financial position, comprehensive income, changes in shareholders' equity, and

cash flows in the same format as that used for the annual financial statements.


2

The interim financial information are intended to provide information additional to that

included in the latest annual financial statements. Accordingly, they focus on new activities,

events and circumstances so as not to duplicate information previously reported. These

interim financial information should therefore be read in conjunction with the latest annual

financial statements.

The interim financial information in Thai language are the official statutory financial

information of the Company. The interim financial information in English language have been

translated from the Thai language interim financial information.

1.4 Basic of consolidation

These consolidated interim financial information are prepared by applying the same basis as

that applied for the preparation of the consolidated financial statements for the year ended

31 December 2019, with there being no changes in the structure of shareholding during the

period.

1.5 New financial reporting standards that became effective in the current period

During the period, the Group has adopted the revised (revised 2019) and new financial

reporting standards and interpretations which are effective for fiscal years beginning on or

after 1 January 2020. These financial reporting standards were aimed at alignment with the

corresponding International Financial Reporting Standards with most of the changes directed

towards clarifying accounting treatment and providing accounting guidance for users of the

standards. The adoption of these financial reporting standards does not have any significant

impact on the Group’s financial statements. However, the new standard involves changes to

key principles, which are summarised below:

Financial reporting standards related to financial instruments

A set of TFRSs related to financial instruments consists of five accounting standards and

interpretations, as follows:

Financial reporting standards:

TFRS 7 Financial Instruments: Disclosures

TFRS 9 Financial Instruments

Accounting standard:

TAS 32 Financial Instruments: Presentation


3

Financial Reporting Standard Interpretations:

TFRIC 16 Hedges of a Net Investment in a Foreign Operation

TFRIC 19 Extinguishing Financial Liabilities with Equity Instruments

These TFRSs related to financial instruments make stipulations relating to the classification

of financial instruments and their measurement at fair value or amortised cost (taking into

account the type of instrument, the characteristics of the contractual cash flows and the

Company’s business model), calculation of impairment using the expected credit loss

method, and hedge accounting. These include stipulations regarding the presentation and

disclosure of financial instruments.

The impact of the adoption of these standards on the Group’s financial statements is as

follows.

- Recognition of credit losses - The Group recognises an allowance for expected

credit losses on its financial assets, and it is no longer necessary for a credit-

impaired event to have occurred. The Group applies the simplified approach to

consider impairment of trade receivables.

The Group adopted these financial reporting standards using the modified retrospective

method of initial adoption of which the cumulative effect is recognised as an adjustment to

the retained earnings as at 1 January 2020, and the comparative information was not

restated.

The cumulative effect of the change is described in Note 2.

TFRS 16 Leases

TFRS 16 supersedes TAS 17 Leases together with related Interpretations. The standard sets

out the principles for the recognition, measurement, presentation and disclosure of leases,

and requires a lessee to recognise assets and liabilities for all leases with a term of more than

12 months, unless the underlying asset is low value.

Accounting by lessors under TFRS 16 is substantially unchanged from TAS 17. Lessors will

continue to classify leases as either operating or finance leases.


4

1.6 Significant accounting policies

The interim financial statements are prepared by using the same accounting policies and

methods of computation as were used for the financial statements for the year ended 31

December 2019 except the changes in accounting policies related to financial instruments

and leases.

1.6.1 Financial instruments

Classification and measurement

Financial assets that are debt instruments are measured at fair value through profit or loss,

fair value through other comprehensive income, or amortised cost. Classification is driven by

the Group’s business model for managing the financial assets and the contractual cash flows

characteristics of the financial assets.

Financial assets that are equity instruments are measured at fair value through profit or loss.

Financial liabilities are classified and measured at amortised cost.

Impairment of financial assets

The Group recognises an allowance for expected credit losses on its financial assets

measured at amortised cost without requiring a credit-impaired event to have occurred prior

to the recognition. The Group accounts for changes in expected credit losses in stages, with

differing methods of determining allowance for credit losses and the effective interest rate

applied at each stage. An exception from this approach is that for trade receivables that do

not contain a significant financing component, the Group applies a simplified approach to

determine the lifetime expected credit losses.

1.6.2 Leases

Right-of-use assets

The Group recognises right-of-use assets at the commencement date of the lease. Right-of-

use assets are measured at cost, less any accumulated depreciation and impairment losses,

and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets

includes the amount of lease liabilities recognised through initial measurement, initial direct

costs incurred, and lease payments made at or before the commencement date, less any

lease incentives received.


5

Unless the Group is reasonably certain that it will obtain ownership of the leased asset at the

end of the lease term, the recognised right-of-use assets are depreciated on a straight-line

basis from the commencement date of the lease to the earlier of the end of the useful life of

the right-of-use asset or the end of the lease term.

Lease liabilities

At the commencement date of the lease, the Group recognises lease liabilities measured at

the present value of the lease payments to be made over the lease term, discounted by the

interest rate implicit in the lease or the Group’s incremental borrowing rate. After the

commencement date, the amount of lease liabilities is increased to reflect the accretion of

interest and reduced for the lease payments made. In addition, the carrying amount of lease

liabilities is remeasured if there is a modification or reassessment.

Short-term leases and Leases of low-value assets

Payments under leases that, have a lease term of 12 months or less at the commencement

date, or are leases of low-value assets, are recognised as expenses on a straight-line basis

over the lease term.

2. Cumulative effects of changes in accounting policies due to the adoption of new

financial reporting standards

As described in Note 1.5 to the financial statements, during the current period, the Group has

adopted financial reporting standards related to financial instruments and TFRS 16. The

cumulative effect of initially applying these standards is recognised as an adjustment to

retained earnings as at 1 January 2020. Therefore, the comparative information was not

restated.


6

The impacts on the beginning balance of retained earnings of 2020 from changes in

accounting policies due to the adoption of these standards are presented as follows:



The impacts of

31 December

2019

Financial

reporting

standards

related to

financial

instruments TFRS 16

1 January

2020


Assets

Current assets

Current investments 834,864 (834,864) - -

Trade and other receivables 56,127 (1,513) - 54,614

Other current financial assets - 834,864 - 834,864

Non-current assets

Property, plant and equipment 1,419,263 - (10,829) 1,408,434

Right-of-use assets - - 417,430 417,430

Liabilities and shareholders’ equity

Current liabilities

Current portion of financial liabilities 3,024 - (3,024) -

Current portion of lease liabilities - - 11,412 11,412


Financial liabilities 3,723 - (3,723) -

Lease liabilities - - 482,220 482,220

Other non-current liabilities 80,284 - (80,284) -


Retained earnings - unappropriated 209,675 (1,513) - 208,162


7



The impacts of

31 December

2019

Financial

reporting

standards

related to

financial

instruments TFRS 16

1 January

2020


Assets

Current assets

Current investments 278,000 (278,000) - -

Trade and other receivables 1,298 - - 1,298

Other current financial assets - 278,000 - 278,000

Non-current assets

Share of profit from investment

accounted for under equity method 1,320,336 (1,513) - 1,318,823

Right-of-use assets - - 26,163 26,163

Liabilities and shareholders’ equity

Current liabilities

Current portion of lease liabilities - - 2,022 2,022


Lease liabilities, net of current portion - - 26,336 26,336

Other non-current liabilities 2,196 - (2,196) -


Retained earnings - unappropriated 209,675 (1,513) - 208,162


8

2.1 Financial instruments

Details of the impact on retained earnings as at 1 January 2020 due to the adoption of

financial reporting standards related to financial instruments are presented as follows:


Consolidated

financial

statements

Separate

financial

statements

Recognition of an allowance for expected credit losses

on financial assets 1,513 -

Impacts on retained earnings due to the adoption of

financial reporting standards related to financial

instruments 1,513 -


9

The classifications, measurement basis and carrying values of financial assets in accordance with TFRS 9 as at 1 January 2020, and with the

carrying amounts under the former basis, are as follows:


Carrying amounts

under the former basis Classification and measurement in accordance with TFRS 9

Fair value through

profit or loss

Fair value through

other comprehensive

income Amortised cost Total


Financial assets as at 1 January 2020

Cash and cash equivalents 261,524 - - 261,524 261,524

Trade and other receivables 56,127 - - 54,614 54,614

Other current financial assets 834,864 198,864 - 636,000 834,864

Restricted bank deposits 1,368 - - 1,368 1,368

Total financial assets 1,153,883 198,864 - 953,506 1,152,370


Financial assets as at 1 January 2020

Cash and cash equivalents 58,545 - - 58,545 58,545

Trade and other receivables 1,298 - - 1,298 1,298

Other current financial assets 278,000 - - 278,000 278,000

Restricted bank deposits 1,368 - - 1,368 1,368

Total financial assets 339,211 - - 339,211 339,211

As at 1January 2020, the Group has not designated any financial liabilities at fair value through profit or loss.


10

2.2 Leases

Upon initial application of TFRS 16 the Group recognised lease liabilities previously

classified as operating leases at the present value of the remaining lease payments,

discounted using the Group’s incremental borrowing rate at 1 January 2020. For leases

previously classified as finance leases, the Group recognised the carrying amount of the

right-of-use assets and lease liabilities based on the carrying amounts of the lease assets

and lease liabilities immediately before the date of initial application of TFRS 16.


Consolidated

financial

statements

Separate

financial

statements

Operating lease commitments as at 31 December 2019 814,856 32,343

Less: Short-term leases and leases of low-value assets (9,545) (3,166)

Add: Option to extend lease term 86,137 14,243

Less: Contracts reassessed as service agreements (8,570) (138)

Add (less): Others (908) 98

Less: Deferred interest expenses (395,085) (15,022)

Increase in lease liabilities due to TFRS 16 adoption 486,885 28,358

Liabilities under finance lease agreements as at

31 December 2019

6,747

-

Lease liabilities as at 1 January 2020 493,632 28,358

Comprise of:

Current lease liabilities 11,412 2,022

Non-current lease liabilities 482,220 26,336

493,632 28,358


11

The adjustments of right-of-use assets due to TFRS 16 adoption as at 1 January 2020

are summarised below:


Consolidated

financial statements

Separate


Land and land improvement 373,389 18,771

Buildings and building improvement 25,121 -

Furniture, fixtures and office equipment 10,048 -

Motor vehicles 8,872 7,392

Total right-of-use assets 417,430 26,163

3. Revenue from contracts with customers

3.1 Disaggregated revenue information


Consolidated


Separate


For the three-month

period ended 31 March

For the three-month


2020 2019 2020 2019

Type of goods or service:

Tuition fees and service income 275,435 258,698 - -

Rental and services income - - 18,206 41,522

Education equipment income 1,312 2,297 - -

Other income 9,346 7,643 1,839 3,280

Total revenue from contracts with customers 286,093 268,638 20,045 44,802

Timing of revenue recognition:

Revenue recognised at a point in time 10,658 9,940 1,839 3,280

Revenue recognised over time 275,435 258,698 18,206 41,522

Total revenue from contracts with customers 286,093 268,638 20,045 44,802


12

3.2 Revenue recognised in relation to contract balances


Consolidated financial

statements

For the three-month


2020 2019

Revenue recognised that was included in contract liabilities at the

beginning of the year 278,997 241,563

3.3 Revenue to be recognised for the remaining performance obligations

The table below shows the time bands of the expected timing of revenue to be recognised

for the remaining performance obligations of contracts with customers as at 31 March

2020 and 31 December 2019.



31 March 31 December

2020 2019

Within one year 451,402 503,504

More than one year 124,327 133,382

575,729 636,886

4. Related party transactions

The relationships between the Company and its related parties are summarised below.

Name of related parties Relationship

SISB Thonburi Company Limited Subsidiary

(ceased since August 2019)

Singapore International School of Bangkok The school

Singapore International School Suvarnabhumi The school

Singapore International School Thonburi The school

Singapore International School Ekkamai The school

SISB Siri Company Limited Joint venture

Singapore International School Chiangmai

The school of SISB Siri

Company Limited

Am International Company Limited Common major shareholder

Private fund of relative of director Relative of director


13

During the periods, the Company and its subsidiaries had significant business

transactions with individuals or related parties. Such transactions, which are summarised

below, arose in the ordinary course of business and were concluded on commercial terms

and bases agreed upon between the Company and those individuals or related parties.


Consolidated


Separate


Transfer Pricing

Policy

For the three-month period ended 31 March

2020 2019 2020 2019

Transactions with subsidiary companies

(Eliminated from the consolidated

financial statements)

Management fee income - - 16,229 15,703 Contract price

Rental and service income - - 1,419 25,434 Contract price

Utilities income - - 394 1,438 Agreed upon basis

Dividend income - - 100,000 - As propose

Transactions with joint venture

Education equipment income 7 46 - - Cost plus margin

Management fee income 557 384 557 384 Contract price

The balances of accounts as at 31 March 2020 and 31 December 2019 between the

Company and its subsidiaries and those individuals or related parties are as follows:



31 March

2020

31 December

2019

31 March

2020

31 December

2019

Trade and other receivables - related

parties (Note 5)

Subsidiaries - - 388 368

Joint venture 588 625 588 559

Total trade and other receivables -

related parties

588

625

976

927

Trade and other payables - related

parties (Note 14)

Subsidiaries - - 1,304 1,412

Total trade and other payables -

related parties

-

-

1,304

1,412


14

Directors and management’s benefits

During the three-month period ended 31 March 2020 and 2019, the Company and its

subsidiaries had employee benefit expenses payable to their directors and management

as below.


Consolidated


Separate


For the three-month period

ended 31 March

For the three-month period

ended 31 March

2020 2019 2020 2019

Short-term employee benefits 12,118 10,493 7,031 5,553

Post-employment benefits 666 724 524 507

Total 12,784 11,217 7,555 6,060

6. Trade and other receivables


Consolidated


Separate


31 March 31 December 31 March 31 December

2020 2019 2020 2019

Trade receivables - unrelated parties

Aged on the basis of due dates

Not yet due 1,540 2,228 - -

Past due

Up to 3 months 141,329 49,381 - -

3 - 6 months 4,255 849 - -

6 - 12 months 1,806 2,973 - -

Over 12 months 344 20 - -

Total 149,274 55,451 - -

Less: Allowance for doubtful debts (5,238) (2,285) - -

Total trade receivables - unrelated

parties, net 144,036 53,166 - -


15


Consolidated


Separate



2020 2019 2020 2019

Trade receivables - related parties

Aged on the basis of due dates

Not yet due Over 12 months 557 545 557 545

Total Trade receivables - related

parties

557

545

557

545

Other receivables - related parties 31 80 419 382

Other receivables - unrelated parties 887 2,336 624 371

Total 918 2,416 1,043 753

Total trade receivables and other

receivables, net

145,511

56,127

1,600

1,298

6. Inventories



Cost

Reduce cost to net realisable

value Inventories - net

31 March

2020

31 December

2019

31 March

2020

31 December

2019

31 March

2020

31 December

2019

Inventories - education

equipment 8,609 9,951 (1,885) (1,923) 6,724 8,028

7. Other current financial assets


Consolidated Separate

financial statement financial statements


2020 2019 2020 2019

Fixed deposits 383,000 636,000 205,000 278,000

Investments are measured at fair value

through profit or loss

Debentures 178,577 178,708 - -

Bills of exchange 19,954 19,858 - -

Total 198,531 198,566 - -

Plus: Unrealised gain on change

in value of investments 683 298 - -

Total investments are measured

at fair value through profit or loss 199,214 198,864 - -

Total current investments 582,214 834,864 205,000 278,000


16

As at 31 March 2020, fixed deposits carry interest rates at 1.10% to 1.60% per annum (31

December 2019: 1.25% to 1.80% per annum) (the Company: 1.20% to 1.60% per annum

(31 December 2019: 1.25% to 1.80% per annum)) with maturity 3 to 6 months from

inception date.

8. Investments in subsidiaries

8.1 Details of investments in subsidiaries as presented in separate financial statements are

as follows:


Company’s name Paid-up capital Shareholding percentage Cost

Carrying amounts under

equity method

31

March

2020

31

December

2019

31

March

2020

31

December

2019

31

March

2020

31

December

2019

31

March

2020

31

December

2019

(%) (%)

Singapore International

School of Bangkok 809,529 809,529 100.00 100.00 809,529 809,529 875,219 844,728


School Suvarnabhumi 13,759 13,759 100.00 100.00 13,759 13,759 8,397 8,423


School Thonburi 337,575 337,575 100.00 100.00 337,575 337,575 387,165 456,714


School Ekkamai 24,199 24,199 100.00 100.00 24,199 24,199 5,682 10,471

Total 1,185,062 1,185,062 1,276,463 1,320,336

8.2 Share of comprehensive income

During the period, the Company has recognised its share of profit (loss) from investments

in subsidiaries under the equity method in the Separate financial statements as follows:



Share of other comprehensive

Share of profit (loss) from income from investments

Company’s name

investments in subsidiaries

during the three-month period

ended 31 March

in subsidiaries during the three-

month period ended

31 March

Dividend received during the

three-month period ended

31 March

2020 2019 2020 2019 2020 2019

Singapore International School of Bangkok 32,003 32,745 - - - -

Singapore International School Suvarnabhumi (8) 1,720 - - - -

SISB Thonburi Company Limited - (6) - - - -

Singapore International School of Thonburi 30,422 19,545 - - 100,000 -

Singapore International School of Ekkamai (4,777) (2,320) - - - -

Total 57,640 51,684 - - 100,000 -


17

9. Investment in joint venture

9.1 Details of investment in joint venture


Consolidated and Separate financial statements

Carrying amounts

Nature of Shareholding based on equity

Joint venture business percentage Cost method

31

March

2020

31

December

2019

31

March

2020

31

December

2019

31

March

2020

31

December

2019

(%) (%)

Held by the Company

SISB Siri Company

Limited

Invest in private

school 50 50 65,000 65,000 55,139 53,804

Total 65,000 65,000 55,139 53,804

9.2 Share of profit

During the period, the Company has recognised its share of profit from investment in joint

venture in the consolidated and separate financial statements as follows:


Consolidated and separate financial statements

Company’s name

Share of profit from investment in joint venture

during the three-month periods ended 31 March

2020 2019

SISB Siri Co., Ltd. 1,335 241

Total 1,335 241

10. Investment properties

Movement of the investment properties account during the three-month period ended

31 March 2020 is summarised below.


Separate financial

statements

Net book value as at 1 January 2020 13,008

Depreciation for the period (418)

Net book value as at 31 March 2020 12,590


18

10.1 Investment properties for rent under operating leases

The Company has several operating lease agreements in respect of the lease of land,

buildings and building improvement. The terms of the agreements are generally from 1 to

3 years. As at 31 March 2020 and 31 December 2019, future minimum rental income to

be generated under these operating leases are as follows.



31 March

2020

31 December

2019

Less than 1 year 4,990 5,761

In over 1 and up to 3 years 2,196 2,929

11. Land, building and equipment

Movements of the land, building and equipment account during the three-month periods

ended 31 March 2020 are summarised below.


Consolidated


Separate


Net book value as at 1 January 2020 1,419,263 82,049

Adjustments of right-of-use assets due to

TFRS 16 adoption

(10,829)

-

Acquisitions during period - at cost 36,670 17,752

Depreciation for the period (32,147) (450)

Net book value as at 31 March 2020 1,412,957 99,351

As at 31 March 2020, certain items of building and equipment were fully depreciated but

are still in use. The gross carrying amount before deducting accumulated depreciation of

those assets amounted to approximately Baht 107 million (31 December 2019: Baht 99

million) (Separate financial statements: Baht 15 million (31 December 2019: Baht 15

million)).


19

12. Leases

The Company and its subsidiaries have lease contracts related to office building, vehicle,

equipment and others.

12.1 Right-of-use assets

The net book value of right-of-use assets related to land, building, leasehold and

equipment lease contracts and the movement during the three-month period ended

31 March 2020 are presented below.


Consolidated

financial

statements

Separate

financial

statements

Net book value as at 1 January 2020 417,430 26,163

Additions during the period 1,015 -

Depreciation for the period (7,219) (721)

Net book value as at 31 March 2020 411,226 25,442

12.2 Lease liabilities

The carrying amounts of lease liabilities and the movement during the three-month period

ended 31 March 2020 are presented below.


Consolidated

financial

statements

Separate

financial

statements

As at 1 January 2020 493,632 28,358

Addition 1,015 -

Accretion of interest 7,541 397

Payments (10,348) (886)

As at 31 March 2020 491,840 27,869

Less: current portion (11,550) (2,052)

Lease liabilities - net of current portion 480,290 25,817


20

13. Intangible assets

Movements of intangible assets account during the three-month period ended

31 March 2020 are summarised below.


Consolidated


Separate


Net book value as at 1 January 2020 10,068 9,973

Additions during the period 505 501

Amortisation for the period (155) (148)

Net book value as at 31 March 2020 10,418 10,326

14. Trade and other payables


Consolidated


Separate


31 March

2020

31 December

2019

31 March

2020

31 December

2019

Trade payable - unrelated parties 8,081 5,864 - -

Other payable - related parties - - 1,304 1,412

Other payable - unrelated parties 11,912 10,228 3,013 732

Accrued expenses 49,340 24,970 6,353 5,762

Total 69,333 41,062 10,670 7,906

15. Income Tax

Tax income (income tax expenses) for the three-month period ended 31 March 2020 and

2019 are made up as follows:


Consolidated


Separate


For the three-month period ended 31 March

2020 2019 2020 2019

Current income tax:

Current income tax charge 452 481 - -

Deferred tax:

Relating to origination and

reversal of temporary

differences 137 (177) - (28)

Income tax expenses (income)

reported in the statement of

comprehensive income 589 304 - (28)


21

Pursuant to the Royal Decree issued under the Revenue Code regarding Exemption from

Revenue Taxes No. 588, it is permitted to grant companies or juristic partnerships income

tax exemption on the following.

1) Net profit derived from the business of private schools established under the Private

schools Act, but not including net profit from the business of non-formal private schools

in the type of tutorial schools established under the Private schools Act.

2) Dividend or share of profits of companies or juristic partnerships granted corporate

income tax exemption under (1).

The promulgation of this Royal Decree is to meet the objective of corporate income tax

exemption for private schools and to encourage the private sector to take part in the

education development.

Following the Private School Act B.E. 2550 stipulates the following Sections: “Section 24:

Once a license to establish a Formal School has been obtained, such School shall

become a juristic person from the date of receiving such license, and the Licensee shall

become a representative of such juristic person.

“Section 48: The government shall provide subsidization and promotion to the Formal

Schools in addition to the subsidy provided particularly on “(4) Reducing or exempting

income tax of the Licensee, as provided for in the Revenue Code”.

One of the Main reason for the enactment of the Private School Act B.E. 2550 is that the

law on the National Education prescribes the principles of administration and

management of private schools that a school shall become a juristic person and have

administration and management committee to independently perform the duties of

management and administration of education of a private school with the same

supervision, monitoring, assessment of quality and standards as those of the state

educational establishment. In addition, the government shall provide subsidies and other

benefits as well as academic support to the private schools.

The Company has received remuneration from the allocation of net profits and retained

earnings of the School. The Company's management believes that the net profits are

exempted from income tax under Section 3 (1) of the Royal Decree issued under the

Revenue Code on Exemption from Revenue Taxes (No. 588), granting companies or

juristic partnerships income tax exemption on net profits derived from the business of

private schools established under the law governing private schools.


22

During the year 2018, the Revenue Department answered the discussion on the case

where a Company obtained a license to establish a school that the allocated remuneration

from the School’s operating results paid to the Company as a licensee is deemed as

payment in return for proceeding the application process to obtain the license, and shall

be implied that the licensee is not exempt from corporate income tax.

The Company’s management has discussed the treatment with relevant government

officials on 7 November 2 0 1 8 to obtain an understanding on taxation of the Company,

who is a licensee to operate private school business. The relevant government officials

informed that the Royal Decree issued under the Revenue Code on Exemption from

Revenue Taxes No. 5 8 8 allows companies or juristic partnerships the income tax

exemption on net profits derived from the business of private schools established under

the law governing private schools and Section 48 (4) of the Private School Act also grants

the licensee income tax exemption. The Company’s management believes that the

consideration received from the allocation of net profits and retained earnings of the

School are exempted from corporate income tax in accordance with the Royal Decree

issued under the Revenue Code on Exemption from Revenue Taxes No. 588.

16. Basic earnings per share

Basic earnings per share is calculated by dividing net earnings for the period (not including

other comprehensive income) by the weighted average number of ordinary shares issue

during the period.

17. Segment information

The Company and its subsidiaries are principally engaged in an international school. Its

operations are carried on only in Thailand. Segment performance is measured based on

operating profit or loss, on a basis consistent with that used to measure operating profit

or loss in the financial statements. As a result, all of the revenues, operating profits and

assets as reflected in these financial statements pertain exclusively to the aforementioned

reportable operating segment and geographical area.

18. Commitments and contingent liabilities

18.1 Operating lease and service agreements commitments

The Company and its subsidiaries have commitments under operating lease and service

agreements relating to land, office building space and office equipment. The terms of the

agreements are generally between 1 and 30 years.


23

Future minimum lease payments were as follows.


Consolidated


Separate


31 March

2020

31 December

2019

31 March

2020

31 December

2019

In up to 1 year 8,899 46,922 2,176 6,588

In over 1 and up to 30 years 2,885 767,934 237 25,755

18.2 Capital commitments

As at 31 March 2020, the Company and its subsidiaries had capital commitments of Baht

8.7 million (31 December 2019: Baht 7.0 million) (Separate financial statements: 6 million

(31 December 2019: nil)) mainly in building and building improvement.

18.3 Guarantees

As at 31 March 2020, there were outstanding bank guarantees of approximately Baht 1.37

million (31 December 2019: Baht 1.37 million) (Separate financial statements: Baht 1.37

million (31 December 2019: Baht 1.37 million)) issued by banks on behalf of the Company

in respect of certain performance bonds as required in the normal course of business.

These included letters of guarantee to guarantee electricity use and among others.

19. Fair value of financial instruments

The Company and its subsidiaries use the market approach to measure their assets and

liabilities that are required to be measured at fair value by relevant financial reporting

standards, except that the cost approach or income approach is used when there is no

active market or when a quoted market price is not available.

Fair value hierarchy

In applying the above-mentioned valuation techniques, the Company and its subsidiaries

endeavor to use relevant observable inputs as much as possible. TFRS 13 Fair Value

Measurement establishes a fair value hierarchy categorising such inputs into three levels

as follows:

Level 1 - Use of quoted market prices in an observable active market for such assets

or liabilities

Level 2 - Use of other observable inputs for such assets or liabilities, whether directly

or indirectly

Level 3 - Use of unobservable inputs such as estimates of future cash flows


24

During the current period, there were no transfers within the fair value hierarchy as follows:

(Unit: Million Baht)


As at 31 March 2020

Level 1 Level 2 Level 3 Total

Assets measured at fair value

Current investments

Debentures - 179 - 179

Bills of exchange - 20 - 20

20. Event after the reporting period

On 1 April 2020, the meeting of the Company’s Board of Directors 2/2020 passed a

resolution to pay an interim dividend of Baht 0.10 per share, totaling of Baht 94 million

which is the same rate that the Company’s Board of Directors 1/2020 passed a resolution

instead of annual dividend payment, with the legal reserve of Baht 11.2 million. The

Company has the list of shareholders who received dividends on 15 April 2020 and paid

on 27 April 2020.

21. Approval of interim financial information

These interim financial information were authorised for issue by the Company’s

authorised directors on 15 May 2020.

Documents

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