SCG Packaging Public Company Limited
Company Profile
Registration No. 0107537000921
Head Office Address 1 Siam Cement Road, Bangsue, Bangkok 10800
Business Type The Company generates revenue from holding shares in other
companies (Holding Company), operating core business for
packaging solutions provider which are organized into two main
operating segments: integrated packaging chain and fibrous chain,
also other relating businesses.
Initial Registered Capital (as at the registration date of conversion into the Public Limited
Company on March 24, 1994)
Registered Capital: 1,000 Million Baht
Paid-up Capital: 1,000 Million Baht
Issued and paid up ordinary shares of: 100 Million shares
Issued and paid up preference shares: - None -
Par value of 10 Baht per share
Present Registered Capital Registered capital: 4,500 Million Baht
Paid-up capital: 3,126 Million Baht
Issued and paid up ordinary shares of: 3,126 Million shares
Issued and paid up preference shares: - None -
Par value of 1 Baht per share
Website www.scgpackaging.com
Share Registrar Tel: +66 2586 2894
Fax: +66 2586 3007
E-mail: [email protected]
Investors can find further information regarding the Company from the Registration Statement for Securities Offering (Form 69-1) and Prospectus which has been disclosed at www.sec.or.th or www.scgpackaging.com.
First 10 major Shareholders (As of December 31, 2019)
ShareholdersNo. of Ordinary
Shares (Issued and Paid-up)
Percent of Total Shares
1. The Siam Cement Public Company Limited 3,095,882,660 99.037
2. Mr. Taewan Tantichattanont 2,320,000 0.074
3. Randery Burahmakan Company Limited 1,872,000 0.060
4. Ms. Orapin Thidarat 1,634,000 0.052
5. Mr. Man Nana 1,563,200 0.050
6. Roman Catholic Mission of Bangkok 1,068,960 0.034
7. Mr. U-thane Tantichattanont 1,000,000 0.032
8. Mr. Somsak Nana 931,440 0.030
9. Mr. Pipatpong Israsena Na Ayudhya 528,880 0.017
10. Mr. Yuph Nana 499,440 0.016
11. Other Shareholders 18,699,420 0.598
Total 3,126,000,000 100.000
CONTENTS
Financial overview SCG Packaging Public Company Limited and its Subsidiaries
2
SCG Packaging Public Company Limited and Its Key Subsidiaries
5
Message from the Board of Directors
6
The Audit Committee’s Report
8
The Governance and Nomination Committee’s Report
10The Remuneration Committee’s Report
11
2019 Operating Results SCG Packaging Public Company Limited and its Subsidiaries
12
Sustainable Development Performance 2019
16
A Sustainable World through Circular Economy
20
Management Structure
22
2019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
45
2019 Financial Statements of SCG Packaging Public Company Limited
153
Holding Company in Subsidiaries, Associates, and Other Companies
218
2010
8,843
50,127 52,46358,439
65,14173,987
83,218 85,36991,312 93,246
51,71454,839
57,430 59,13564,614
70,90774,542
81,45587,255
139,51389,070
8,518 8,554 9,189 9,42210,499 10,554
12,082
14,56615,036
5,269
6,066
4,425
3,2853,2253,1943,4183,332
3,1233,290
2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Financial Overview SCG Packaging Public Company Limited and its Subsidiaries
Unit : Million Baht
Profit Before Finance Costs, Income Tax Expense, Depreciation and Amortization - EBITDA
Total Assets
Profit Attributable to Owners of the Parent
Revenue from Sales
Annual Report 2019 SCG Packaging Public Company Limited2
2010
8,843
50,127 52,46358,439
65,14173,987
83,218 85,36991,312 93,246
51,71454,839
57,430 59,13564,614
70,90774,542
81,45587,255
139,51389,070
8,518 8,554 9,189 9,42210,499 10,554
12,082
14,56615,036
5,269
6,066
4,425
3,2853,2253,1943,4183,332
3,1233,290
2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Financial Overview SCG Packaging Public Company Limited and its Subsidiaries
Unit : Million Baht
2019 2018 2017 2016 2015
Statements of Income1
Revenue 89,911 87,770 82,862 75,128 71,598
Costs and expenses 83,024 79,661 76,888 70,799 67,114
EBITDA 15,036 14,566 12,082 10,554 10,499
Profit attributable to owners of the parent 5,269 6,066 4,425 3,285 3,225
Statements of Financial Position
Assets 139,513 93,246 91,312 85,369 83,218
Liabilities 76,697 39,986 35,661 32,617 34,892
Total equity attributable to owners of the parent 42,952 40,441 42,891 40,402 38,339
Total shareholders’ equity 62,816 53,260 55,651 52,752 48,326
Share Information
Total number of shares issued2 (Million Shares)
3,126 3,126 3,126 3,126 3,126
Book value per share2 (Baht) 13.74 12.94 13.72 12.92 12.26
Basic earnings per share2 (Baht) 1.69 1.94 1.42 1.05 1.03
Proposed dividends per share2, 3 (Baht) 0.98 0.50 2.50 0.25 0.25
Financial Ratio
Dividends payout ratio (%) 57.9 25.8 176.6 23.8 24.2
Profit on revenue from sales (%) 5.9 7.0 5.4 4.4 4.5
Return on assets (%) 4.5 6.6 5.0 3.9 4.1
Return on equity attributable to owners of the parent (%) 12.6 14.6 10.6 8.3 8.7
Remarks: 1 Included financial performance of Fajar since July 2019 and Visy (Thailand) since September 20192 In 2019, there is a change to par value of the ordinary shares of the company and an issuance of stock dividend. This has caused the number of the ordinary shares increase from 156.3 million shares
to 3,126 million shares. The numbers of the ordinary shares used in financial calculation during 2015-2018 period are adjusted to reflect those changes as if the change in par value of the ordinary share
and the issuance of stock dividend had occurred since the beginning of the respective reporting period.3 The proposed full year dividend of 0.98 baht per share is calculated from
1) Interim dividend in an amount of 1.11111111 baht per share on 1,563 million ordinary shares
2) Final dividend in an amount of 0.42 baht per share on 3,126 million ordinary shares
3
SCG Packaging Public Company Limited and Its Key Subsidiaries
Integrated Packaging Chain
1. Fiber-Based Packaging • Thai Containers Group Co., Ltd. • D-In Pack Co., Ltd. • Dyna Packs Co., Ltd. • Tawana Container Co., Ltd. • Thai Containers Khonkaen Co., Ltd. • Thai Containers Rayong Co., Ltd. • Precision Print Co., Ltd. • SCGP Solutions Co., Ltd. • Orient Containers Co., Ltd. • Alcamax Packaging (Vietnam) Co., Ltd.(Vietnam) • AP Packaging (Hanoi) Co., Ltd. (Vietnam) • New Asia Industries Co., Ltd. (Vietnam) • Packamex (Vietnam) Co., Ltd. (Vietnam) • PT Indocorr Packaging Cikarang (Indonesia) • PT Indoris Printingdo (Indonesia) • PT Primacorr Mandiri (Indonesia) • TCG Rengo (S) Ltd. (Singapore) (on process of liquidation)
2. Performance and Polymer Packaging • Conimex Co., Ltd. • TC Flexible Packaging Co., Ltd. • Prepack Thailand Co., Ltd. • Visy Packaging (Thailand) Limited • SCGP-T Plastics Co., Ltd. • SCGP Rigid Plastics Co., Ltd. • Tin Thanh Packing Joint Stock Company (Vietnam)
3. Packaging Paper • Thai Cane Paper Public Company Limited • Siam Kraft Industry Co., Ltd. • PT Dayasa Aria Prima (Indonesia) • PT Fajar Surya Wisesa Tbk. (Indonesia) • SCGP Solutions (Singapore) Pte. Ltd. (Singapore) • United Pulp and Paper Co., Inc. (Philippines) • Vina Kraft Paper Co., Ltd. (Vietnam)
Fibrous Chain
1. Forestry Business • The Siam Forestry Co., Ltd.
2. Pulp and Paper Products • Thai Union Paper Public Company Limited (on process
of liquidation) • Thai Paper Co., Ltd. • Phoenix Pulp & Paper Public Company Limited • Phoenix Utilities Co., Ltd. • Interpress Printers Sendirian Berhad (Malaysia)
Other Businesses
• Invenique Co., Ltd. • SKIC International Co., Ltd. • SCG Paper Energy Co., Ltd. • SCGP Excellence Training Center Co., Ltd.
5
Message from the Board of Directors SCG Packaging Public Company Limited
The economies of Southeast Asia continue to grow at a strong and healthy pace, relative to other regions, while the global economy has recently encountered dramatic challenges such as the US-China trade war, oil prices fluctuations, and volatility of the capital markets and currency rates.
The packaging industry in Southeast Asia witnessed healthy growth in 2019, driven by competitive product and service exports, favorable demographics with increased purchasing power of the working class, and other lifestyle changes. All of these factors have led to the growth of packaging offering for the variety of consuming behaviors, namely convenient packaging, environmentally friendly packaging, and transportation packaging especially for E-Commerce industry. Moreover, industrial factors, such as the growth of the electronics and electric appliance sector in Vietnam, the vibrant food, beverage and consumer goods industries, as well as the growing footwear and textile industries in Indonesia, have all played important roles. Another factor behind these growths has been the relocation of Chinese manufacturing base to Southeast Asia.
Domestic packaging demand within Thailand in 2019 slightly increased, attributed to the resilient growth of consumer products, the emerging E-Commerce business, as well as the increasing need for environmentally friendly packaging, while
the export sector slowed due to the prolonged US-China trade war, and the appreciation of the Thai Baht.
The company continues to focus on expanding its investments in the Southeast Asia region, and works towards improving the organization’s efficiency to respond to quick pace of changes through more competitive supply chain offerings such as integrated packaging solutions. With the company’s efforts, total revenue from sales in 2019 registered at 89,070 million baht, representing a 2% increase from last year, in which sales from Southeast Asia (excluded Thailand) was accounted for 30% of the total revenue. Earnings was 5,269 million baht, a 13% decrease from last year, attributed to lower selling price of the fibrous chain and the adjustment of employee benefits as a result of the amendment to the Thai Labor Law of 338 million baht.
Maintained Market-Leading Position by Continuously Expanding Investment in the Region
The company expanded its investment through the acquisition of the 55% stakes in PT. Fajar Surya Wisesa Tbk. (“Fajar”), a leading paper packaging business in Indonesia, with the investment valued at 20,817 million baht and the acquisition
Annual Report 2019 SCG Packaging Public Company Limited6
of the 80% stakes in Visy Packaging (Thailand) Company Limited (“Visy (Thailand)”), the high technology thermoformed food packaging company supplying to world class food companies, with the investment valued at 4,305 million baht.
Accelerating Growth with the Initial Public Offering (IPO)
The company has submitted its filings to the Securities and Exchange Commission to issue and offer new shares through the Initial Public Offering (IPO) at the amount of not exceeding 30% of the company’s total paid up capital after its capital increase. The net proceeds from the IPO will be used for business expansion for continued growth within the region, for financial restructuring that will allow future business expansion, as well as for providing better agility in business management.
Innovative Products and Services as Integrated Packaging Solutions
The company continues to focus on developing new products, services and technologies that delivers a variety of packaging solutions to enhance our customers’ brand perception. This is in addition to the efficient supply chain offerings that fulfill the consumer’s behaviors in an environmentally friendly manner. An example of this is OptiBreathTM, a packaging solution that prolongs shelf-life of fresh fruits and vegetable through the use of film technology that controls the flow of air and vapor which is suited to different type of fruits and vegetables. Another example is Fest, an environmentally friendly food safety packaging made from eucalyptus pulp, which can be heated in a microwave and is biodegradable within 60 days. These examples
show the company’s commitment to offer quality packaging solutions that meet our customers’ differentiated needs.
Human Resources, Society, and Environment
The company continues to place its tremendous focus on developing its personnel’s skills to competitively deliver the integrated packaging solutions and fostering strong organizational culture, as well as improving the work processes for maximum efficacy through the use of Artificial Intelligence (AI) and automation technologies. There is also the emphasis on the increasing use of environmentally friendly energy through the conversion of waste from the manufacturing process into electricity for internal use, as is the case with the “Ban Rang Plub Community Model”, which the company has been providing supports for the past 5 years and has been awarded the first prize at the national Zero Waste Community Project Contest 2019, organized by the Department of Environmental Quality Promotion. Knowledge from this project will be transferred to other communities to promote further cooperation and the eventual growth of trash management networks at district levels.
The Board of Directors would like to express our gratitude to all shareholders and other relevant parties for the continued trust and support you have placed with the company. We would like to assure that the company will continue to develop its organization effectiveness and drive towards success with strong adherence to good governance, furthering the company’s prosperity, maintaining its leading position in the Southeast Asia region, as well as to embed the Circular Economy principle into the work processes throughout the supply chain as the key foundation to build sustainable business growth for the company.
Bangkok, January 28, 2020
(Mr. Prasan Trairatworrakul) (Mr. Wichan Jitpukdee) Chairman Chief Executive Officer
7
The Audit Committee’s Report SCG Packaging Public Company Limited
According to the resolution of the Board of Directors made on 21 June 2019, the Audit Committee was formed to independently perform its duties, in accordance to the Audit Committee Charter. In 2019, the Audit Committee convened eight times, with the 100% attendance rate of its members. The key highlights of these meetings are summarized as follows:
1. Review of the Financial Statements: The Audit Committee reviewed both the quarterly and 2019 annual financial statements of SCG Packaging Public Company Limited (or “SCGP”), and the consolidated financial statements of SCGP and its subsidiaries. These financial statements were prepared in accordance to the Thai Financial Reporting Standards, which conforms to the International Financial Reporting standards. The Committee reviewed material issues and special items, and obtained sufficient clarification from the external auditors and the management to confirm that the financial statements and the noted disclosures in the financial statements complies with the relevant laws and financial reporting standards. The Audit Committee then endorsed the financial statements reviewed and audited by SCGP’s external auditors without reservation.
2. Review of Connected Transactions or Potential Conflict of Interest: The Audit Committee outlined the scope of connected transactions and reviewed connected transactions and other transactions that may result in conflict of interest. The results suggested that SCGP’s transactions are in line with the policies of connected transaction and the outlined scope.
3. Review of Corporate Governance: SCGP continues to conduct its business in accordance with sustainable development and corporate governance principles, with reference to international standards including Organization for Economic Co-operation and Development (OECD), Thailand Securities and Exchange Commission (SEC), Stock Exchange of Thailand (SET), and Thai Institute of Directors Association (IOD). The Audit Committee reviewed the policies and governance guidelines, the efficiency and
effectiveness of good governance. The body concluded that the directors, the management and employees strictly complied with the policy by having the Board of Directors and the management as the role model. This commitment was further extended to the suppliers of SCGP through the supplier Code of Conduct as guidelines. The aim is to encourage our suppliers to behave as good citizens and conduct their businesses in such a way that they address societal and environmental concerns that are beyond the basic legal requirements.
4. Review of Risk Management Assessment System: The Audit Committee reviewed the efficiency and effectiveness of SCGP’s risk management process, and assigned SCGP Risk Management Committee to roll out the structures, core working team, policies, strategies, risk management frameworks, and risk management plans, in addition to the review of risk profile and nationwide risk management monitoring.
5. Review of Internal Control System: The Audit Committee reviewed the results of the internal control assessment, both operational and information technology systems, as reported by the Internal Audit Office and prescribed by its charter. The assessment was in compliance with the sufficiency internal control assessment recommended by the Securities and Exchange Commission (SEC). The Committee concluded that SCGP had sufficient internal controls that are appropriate for the company’s business operations. The management focused on creating employee awareness to promote moral principles, ethical behavior, code of conduct and anti-corruption activities by building the proactive preventive system. The domain comprises Ethics e-Testing, e-Policy e-Testing, risk management and control practices in accordance with “Three Lines of Defense” model. Workshops were organized for the business units to equip staffs at all levels to better understand all relevant aspects of risks, impacts, and key internal controls.
Annual Report 2019 SCG Packaging Public Company Limited8
6. The Internal Audit: The Audit Committee conducted its annual review of the Audit appointed Charter and the Internal Audit office Charter, and appointed the Audit Office Director. In 2019, the Audit Office scrutinized, both operational and information technology systems for 45 projects in total. The findings concluded that there are no material issue concerns. Furthermore, the Audit Office introduced digital technology related projects such as Data Analytics Robotic Process Automation (RPA) for use in data creation and analysis. The Audit Office created the internal control documents entitled “System Development and Outsourcing System Development with Agile Methodology”, and provided consultation for risk management and key area controls for companies that use new application in operation systems, etc. Quality Assurance Review (QAR) was assessed by an independent expert.
7. Review of Complaint and Whistleblowing Investigations: SCGP developed the Whistleblowing System to enable employees and external parties to report non-compliance. External parties may complain non-compliance directly to www.scgpackaging.com. This is in addition to contacts through phone calls, e-mails and letters to the Independent Committee, the Audit Committee, the Internal Audit Office, and the Corporate Secretary Office. Findings from the investigation were taken into consideration for determination of future procedure and preventive guidelines. The Audit Committee
also reviewed measures and formulated preventive anti-corruption measures for possible frauds across systems, standard-based corruption investigations, risk assessment are appropriated with continuous business operation.
8. Appointment of the External Auditor and Review of the Audit Fee for 2020: KPMG Phoomchai Audit Ltd. has been selected and appointed as the external audit firm of SCGP from 2018 to 2022. Based on the satisfactory results of their performance appraisal and their qualification as independent auditors, the external auditors possess professional expertise, knowledge, capability and experience in auditing SCGP’s businesses, and share knowledge related to business in addition to auditing. Therefore, the Audit Committee recommended the Board of Directors to seek approval at the shareholders’ meeting for the appointment of Mr. Wairoj Jindamaneepitak, Certified public Accountant Registration No. 3565; or Miss Thanyalux Keadkaew, Certified public Accountant Registration No. 8179; or Miss Dusanee Yimsuwan, Certified public Accountant Registration No. 10235, of KPMG Phoomchai Audit Ltd. as the Company’s auditors for the year 2020.
On behalf of the Audit Committee
(Mrs. Khaisee Nuengsikhaphean)Chairman of the Audit Committee
9
The Governance and Nomination Committee’s Report SCG Packaging Public Company Limited
The Board of Directors resolved to appoint the Governance and Nomination Committee, effective November 25, 2019, thereby extricating it from the Nomination, Remuneration, and Governance Committee, previously established to fulfill the roles and responsibilities prescribed by the Board of Directors, which included proposing governance policies and guidelines and nominating qualified candidates for directorship.
In 2019, the Governance and Nomination Committee convened a total of two meetings, with an attendance record of 100%. The significant duties performed by the Committee, which were in line with its scope of responsibilities defined in the Governance and Nomination Committee Charter, in 2019 can be summarized as follows:
1. Recommendations of policies and guidance with regard to the Corporate Governance of SCG Packaging
In 2019, the Board of Directors resolved to approve the recommendations of the Governance and Nomination Committee to establish and review the governance policies and guidance of SCG Packaging, both in preparation for the Initial Public Offering (IPO) and the listing of its common shares in the Stock Exchange of Thailand (SET) and in an effort to foster awareness and promote adherence to SCG Packaging Corporate Governance Principles and Code of Conduct among the employees. Relevant initiatives included the following:
• Adopted the Corporate Governance Code for Listed Companies 2017 (CG Code), issued by the Securities and Exchange Commission (SEC), as practical and valuable to the business context of SCG Packaging to ensure sustainable value creation. The duties of the Board of Directors stipulated in the CG Code were also included in the Board of Directors Charter.
• Established the core values, code of conduct, and governance structure of SCG Packaging, drew up charters for the Board of Directors and all Sub-committees, defined the roles and responsibilities of the CEO, and formulated policies, measures, and guidelines relevant to organizational management in accordance with corporate governance principles, with the goal of providing guidance for the directors, executives, and employees in pursuing fair and transparent business conduct and management, enabling them to generate returns and create long term value for shareholders, foster
confidence and trust in all stakeholders, and sustainably enhance the company’s competitive capability. These have been compiled and included in the Corporate Governance Handbook, which is regularly reviewed and updated, and the policies approved by the Board of Directors are published on the company’s website.
2. Review of the structure and composition of the Board of Directors and the qualifications of directors
Reviewed the structure and composition of the company’s Board of Directors and Sub-committees, including the number and qualifications of directors appropriate for the company’s business management and the qualification requirements of independent directors, which were more stringent than those stipulated by the Capital Market Supervisory Board.
3. Nomination of candidates to fill additional director positions and replace retiring directors in 2020
Nominated a list of qualified candidates for directorship and independent directorship to be reviewed and proposed to the General Meeting of Shareholders by the Board of Directors for appointment as directors to fill additional director positions and replace retiring directors in 2020, in compliance with the Corporate Governance Codes for listed companies set forth by SET and SEC as well as other relevant international principles. In addition, the Committee also promoted a greater breadth and diversity of knowledge, experience, perspective, and business vision in the Board composition to stay in keeping with the strategies and business conduct of SCG Packaging.
On behalf of the Governance and Nomination Committee
(Mr. Chalee Chantanayingyong)
Chairman of the Governance and Nomination Committee
Annual Report 2019 SCG Packaging Public Company Limited10
The Remuneration Committee’s Report SCG Packaging Public Company Limited
The Remuneration Committee performed their duties as prescribed in the Charter of the Remuneration Committee by the Board of Directors with prudence, fairness, and rationality. In doing so, the Committee considered and compared the remunerations of other listed companies and leading corporations within similar industries or comparable size.
In 2019, the Committee convened three times, with the 100% attendance rate of its directors. Their primary aim was to consider the remuneration of the Board of Directors and Sub-committees, before proposing the findings to the Board and the Shareholders’ Meeting for approval. The Committee also considered the remuneration of the Company’s CEO and top executives, in order to align each respective package with the performance of each executive and SCG’s operating results, while retaining SCG’s leadership within the industry.
Furthermore, the Remuneration Committee also provided their views and recommendations to the Management of the company, with regard to human resources management, in the efforts to foster increased morale while retaining highly capable employees with the company.
On behalf of the Remuneration Committee
(Mr. Chumpol Nalamlieng) Chairman of the Remuneration Committee
11
2019 Operating Results SCG Packaging Public Company Limited and its Subsidiaries
Operating ResultsIn 2019, total revenue from sales of SCG Packaging Public Company Limited amounted to 89,070 million baht, an increase of 2% from 2018. EBITDA was 15,036 million baht, an increase of 3% from the previous year, mainly from the consolidation of the operating results of PT Fajar Surya Wisesa Tbk. and Visy Packaging (Thailand) Ltd. Profit for the year 2019 was 5,269 million baht, 13% decrease from the previous year attributed to lower selling price of the fibrous chain and the adjustment of employee benefits as a result of the amendment to the Thai Labor Law of 338 million baht.
Integrated Packaging Chain: Total revenue from sales was 72,006 million baht, an increase of 5% compared to the previous year and EBITDA was 13,758 million baht, an increase of 13%, mainly due to higher export volume and the consolidation of Fajar’s and Visy Packaging Thailand’s operating results.
Fibrous Chain: Total revenue from sales was 18,794 million baht, a 9% decrease from the previous year, and EBITDA was 1,208 million baht, a 46% decrease from the previous year, mainly due to lower selling price of printing and writing paper and pulp.
Market and CompetitionIn 2019, the packaging industry in Thailand slightly expanded compared to the last year, due to the growth of food, beverage and consumers products, E-Commerce industry and increasing demand for environmentally-friendly packaging, while the export segment still slowed down because of the prolonged trade war between the US and China and continuous surging of Thai baht. The demand in the printing and writing paper industry slightly lessened compared to the last year, since the consumer’s behavior shifted to digital technology.
Business Growth and InvestmentExpanded our investment through the acquisition of 55% stakes in PT Fajar Surya Wisesa Tbk., a leading paper packaging business in Indonesia, with the investment valued at 20,817 million baht. The aquisition of major stakes in Fajar will help propel the expansion of packaging business in Southeast Asia region, especially in Indonesia, which has ample growth opportunity in the future.
Acquired 80% stakes in Visy Packaging (Thailand) Ltd., the high- technology thermoformed food packaging company supplying to world class food companies, with the investment valued at 4,305 million baht, for a more variety of packaging products to better meet customer’s requirements.
Restructured our rigid polymer packaging business, with Toppan Printing Company Limited, a Japanese packaging company, investing in SCGP-T Plastics Company Limited, a holding company in the rigid polymer packaging business which holds 75% stakes in Conimex Company Limited. Toppan’s high skills and expertise in production techniques will help strengthen the operation as well as expand the customer base.
The company has submitted its filings to the Securities and Exchange Commission to issue and offer new shares through the Initial Public Offering (IPO) at the amount of not exceeding
Annual Report 2019 SCG Packaging Public Company Limited12
30% of the company’s total paid-up capital after its capital increase. The net proceeds from the IPO will be used for business expansion for continued growth within the region, for financial restructuring that will allow future business expansion, as well as for providing better agility in business management.
Human Resources DevelopmentAdjusted organizational structure and assign responsibilities to executives and employees, mainly considering the organization’s competency in responding to the customer’s needs, as well as encourage the people capability enhancement, both in concept idea and expertise, to make employees in all levels understand the operational concept, focusing on customer centricity and meeting their needs accurately and quickly.
Improved the processes, methods and models using Artificial Intelligence (AI) and automation technologies, as well as developed skills for the related employees to understand how to work with the machines and technologies completely and safely, leading to the organizational effectiveness.
Planned the talent management and development system consistent to the succession plan to make the future executives prepared in the aspects of business, expertise and influential speaking, and being a role model by supporting learning from experienced people in the organization and focusing on self-learning.
Reinforced the cross-cultural management through strong corporate culture reflected behavior encouragement for all levels of employees to recognize and comply with the SCG’s business operation ideology in consideration off the cultural diversity and see the importance of diversity.
Product, Service and Solution DevelopmentThe company focuses on innovative solutions development to meet the various requirements comprehensively according to the changed consumer behaviors while still being environmentally friendly. Its main developing products are as follows:
• Developed “Fest Chill” in the environmentally friendly packaging brand of Fest. The product is made of natural pulp and coated with strengthening agents. It can be heated and cooled, and recycled in accordance with the Circular Economy.
• Developed “Fest Bio” in the environmentally friendly packaging brand of Fest. The product is made of natural pulp, can be heated and cooled and is biodegradable within 60 days.
• Developed polymer packaging in the brand of “OptiBreathTM” that prolongs the freshness of fruits and vegetables, with the film technology controlling the level of gas and vapor passing in and out proper for each type of fruits and vegetables, such as coconuts, mangoes and orchids, lessening the wastes and transportation limitations. Also, co-developed “Spout Pouch” with Mahidol University to store liquid foods for people with swallowing difficulty. It took two years in researching and testing before it proceeds with the manufacture and distribution processes. Moreover, developed “Retort Packaging” that can stand the heat from high temperature sterilization process to prolong the foods without refrigeration and is easy to use, suitable for fast-paced consumer lifestyle in the present.
13
• Developed digital printing packaging. The printing system used is direct printing from the work data, skipping the conventional mold preparation and lessening the production time. It can be printed on a variety of material, giving sharp images and avoiding the minimum limits.
• Developed lighter-weighed paper, while the strength remains the same or higher, using Nano Technology. It lessens the resources used in the manufacturing process and increases the ratio of recycled pulp used in the process.
• Co-developed packaging solutions to S&P for the second consecutive year in designing special packaging for moon cakes with the concept of “Lamps in the Moonlight”, being made of beautifully designed and strong material containing recycled paper. The packages are reusable and brought into the recycling process for the maximum resource utilization.
• Co-developed packaging solutions to Tesco Lotus, offering the service to collect and take the used paper packaging from Tesco Lotus to recycle and manufacture reusable paper bags as an integrated program. It aims to create
the closed-loop system to encourage the packaging that meets the consumer’s usage requirements and solves the environmental problems at the same time, according to SCG Circular Way.
Production Process DevelopmentInstalled Solar Farms and Solar Floating to generate solar electricity, reducing fossil fuel energy consumption and greenhouse gas emission about 9,800 ton CO
2e/year, and reused
the treated wastewater in some kinds of activities, such as washing machinery and watering trees, reducing water usage up to 1,550,000 m3/year for the maximum energy utilization.
Awards and Achievement in 2019SCG Packaging Public Company Limited and Thai Containers Group Co., Ltd. received awards as following:
Annual Report 2019 SCG Packaging Public Company Limited14
• Global contest: WorldStar Packaging Awards 2019 from World Packaging Organization (WPO) in 3 awards: - Luxury Packaging 1 award - Food Packaging 1 award - Point of Purchase 1 award
• Regional contest: AsiaStar Packaging Awards 2019 from Asian Packaging Federation (APF) in 5 awards: - Consumer Packaging 2 awards - Point of Purchase 2 awards - Eco Packaging 1 award
• National contest: ThaiStar Packaging Awards 2019 from the Department of Industrial Promotion, Ministry of Industry in 10 awards:. - Consumer Packaging 3 awards - Point of Purchase 5 awards - Eco Packaging 2 awards
Thai Cane Paper Public Company Limited, Kanchanaburi Plant and Prachinburi Plant received The Prime Minister’s Industry Award 2019, in the category of Social Responsibility, organized by the Ministry of Industry.
Thai Cane Paper Public Company Limited, Kanchanaburi Plant and Prachinburi Plant received CSR-DIW Continuous Award 2019, organized by the Ministry of Industry.
Thai Cane Paper Public Company Limited, Kanchanaburi Plant received The Award Ceremony for Outstanding Establishment Labour Relations and Labour Welfare 2019, organized by the Ministry of Labour.
Siam Kraft Industry Co., Ltd., Wangsala Plant was awarded first runner-up prize in ASEAN Coal Awards in the category of Excellence Coal Management, organized by the Ministry of Energy.
152019 Operating ResultsSCG Packaging Public Company Limited and its Subsidiaries
1. Green Manufacturing
2. Upstream Supply Chain 3. Downstream Supply Chain
4. Sustainable Development Support
Sustainable Development Performance 2019
SCG Packaging has established the operational policy according to the sustainable development method, in consideration of risks and opportunities in the sustainable work improvement for the organization. The business operation strategy is set to ensure business growth in the fast changing situations. Short-term and long-term demands and expectations of all stakeholders are also taken into consideration to create economic, social and environmental balance.
SCG Packaging Sustainable Supply ChainSCG Packaging adheres to the development plan throughout the supply chain to create sustainability for the business operation, society and environment, with steps as follows:
1. Green Manufacturing Process • Improve the manufacturing process effectively and
efficiently for Operational Excellence, by defining indicators and goals of each issue, both in short-term and long-term, and applying the management system and standards, such as Environmental Management System (ISO 14001), Occupational Health and Safety Management System (ISO 45001), Energy Management System (ISO 50001), Guidance on Social Responsibility (ISO 26000), Total Quality Management, Total Productive Maintenance and Integrated Business Excellence (IBE). There are also Environmental Performance Assessment Program (EPAP) and Safety Performance Assessment Program (SPAP) organized by SCG to boost confidence in stakeholders related to environmental, occupational health and safety operations.
• Join the Green Industry Support and Development Program by the Ministry of Industry and Eco Factory Program by the Federation of Thai Industries, according to Thailand’s industry development policy, towards the economic, social and environmental balance in the concept of sustainable development.
• Commit to develop employees and business partners. In 2015, SCG set up SCG Learning Council to create more effective learning system. Then, the system and standards have been applied to its business expansion to Southeast Asia Region for sustainable development up to the same standard.
Annual Report 2019 SCG Packaging Public Company Limited16
Sustainable Development Issue Evaluation Steps
1Gather the sustainable development issue throughout the supply chain (raw material supply/manufacture/transportation and distribution/product and service usage)
2Evaluate the importance of the issue by the impact to stakeholders
• Hold a workshop with representatives from all the departments related directly to each group of stakeholders to assess the impact levels.
• Hold a sub-meeting with each department to review the importance level analyzed from the viewpoint of the outside stakeholders.
3 Evaluate the importance of the issue by the impact to the Company
• Hold a workshop with representatives from all the departments and experts to analyze and prioritize the importance from SCG Packaging’s viewpoint and the possible impacts or business opportunities.
4 Prioritize the importance of the issue in the overview
• Prepare the table of importance levels of the issue from the viewpoint of the stakeholders.
• Hold a clarification meeting with every department to hear opinions and review the prioritization result for the sustainable development issue.
• Present the prioritization result to SCG Packaging’s Sustainable Development Committee.
• SCG Sustainable Development Practice• International Practice (GRI, DJSI, WBCSD and others)• Public meeting with expert in various fields• Employee satisfaction survey• Community satisfaction survey• Organization image survey• Whistleblowing channels• Organizational risk evaluation
2. Upstream Supply Chain Management Improvement • Perform environmentally-friendly procurement operation
and business partner security warranty to strengthen the business partners’ sustainable development.
3. Value Addition for Manufacturers and Downstream Supply Chain • Provide value-added, environmentally-friendly products and services to sustainably meet the customer’s requirements.
4. Sustainable Development Method Promotion Support • With “Commitment to Social Responsibility” as its
ideology, SCG Packaging provides assistance and support methods for stronger society even though it does not directly involve or relate.
Sustainable DevelopmentIn order to properly manage the sustainable development, as well as to get the organization and society prepared, SCG Packaging collects and prioritize the sustainable development in relation to its business operation, referring to the Global Reporting Initiative (GRI) standards and using the cooperation procedure in prioritize the sustainable development. Thus, the issue management appropriately meets the stakeholder’s requirements.
17
0 1 2 3 4 5 6 7 8
1
2
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Priority for Business
• Safety• Product Stewardship (CE)• Energy Management• Water Management• Customer Engagement• Community Engagement
Prio
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for
Sta
keho
lder
s
Safety
CommunityEngagement
Energy Management
Water Managment
CustomerEngagement
Product Stewardship
Supply Chain Managment
Ethics &Integrity
Climate Change
Fair Tax
Human CaptialDevelopment
Occupational Health
Emissions
RecyclingStrategy
Social
Environment
Economic
Biodiversicity &
Ecosystem
Waste Managment
Labor Practice & Human Rights
SCG Packaging Materiality Matrix
Sustainable Development Projects in 2019Social and Community Development Project • The Challenge - Packaging Design Contest
The company organized “The Challenge - Packaging Design Contest 2018” consecutively since 2016 to provide a stage for young designers to showcase their packaging design talents and to equip them with insights into customer-centric marketing, which can be adopted as a design concept to meet the requirements of the package users. Leading customers also cooperate in determining the topic of the contest and judge the contest. The winning design will be further developed for use in the market.
Community Economy, Job and Income Creation Project • Local community’s job and income creation project
The company encouraged a sustainable income for communities surrounding the plants through training of basket weaving from paper band; waste from paper manufacturing processes which can be designed into bags, baskets and decorative items, as well as provided multiple channels for sales, adding values to waste and promoting communities’ economic growth sustainably.
Environmental Conservation Projects • Energy and climate change management
The company is committed to reduce energy consumption and greenhouse emission, aiming to achieve the goal by improving the efficiency of energy consumption in manufacturing process and increasing the proportion of renewable and alternative energy to lessen the fossil fuel dependency. Moreover, it reviewed the ways to reduce impact from waste and looked for the way to utilize the company’s typical raw material, i.e., waste rejects paper (RCP) sorting, black liquor from pulp manufacturing process and biogas from wastewater treatment system are being used as fuel for company power generation.
• Water managementThe company continuously improved water utilization efficiency by analyzing water balance and sought to improve company’s water usage, such as manufacturing process adjustment, machinery modification and new equipment installation. In addition, by improving the wastewater treatment process to recycle treated water. Modern and high-tech biological treatment systems are effectively selected and installed to assure treatment efficiency prior to recycling treated wastewater in manufacturing process and providing to neighboring community to help lessen cultivation costs and make income for farmers, and also to support the community during water scarcity period or drought situation. The company’s Water Management for Agriculture Project has delivered the treated wastewater to agricultural areas in Ratchaburi, Kanchanaburi and Prachinburi Provinces.
• Ban Pong Circular Economy Community ProjectAccording to the Circular Economy, the company provided knowledge and equipment regarding waste management to Ban Rang Plub Community, which received the first prize in the National Zero Waste Community Project Contest 2019, organized by the Department of Environmental Quality. It also extended the knowledge about waste management to other communities in Ban Pong district with the purpose for community members to be knowledgeable and able to manage waste in their own communities, leading to cleanliness and order in the area for the people’s health and hygiene and environment; to promote cooperation and establish the district community waste management network in which its members participate in solving the waste management problems of Thailand.
18Annual Report 2019 SCG Packaging Public Company Limited
Green Procurement Purchase
GHG Emission Reduction
Lost Time Injury Frequency Rate (Employee/Contractor)
Environmental Expense and Investment
"SCG eco value" Products and Services
Water Withdrawal Reduction
Energy Consumption Reduction
Alternative Energy
% of non-hazardous/hazardous waste landfilled
Business partners who passed the environmental, social and governance risk assessment
5,114 million baht
489,050
7.02
3.76 petajoules
0.104/0.136 cases per 200,000 man-hours
1,383 scholarships in 56 schools
14 products
100%
14.4%
0/0(of suppliers with procurement spendingover 1 million baht.)
(compared with BAU at the base year of 2007)
10.3%(Compared with BAU at the base year 2014)
(compared with BAU at the base year of 2007)
of revenue from sales
8.4% 30.6%
Recycled Water
Support community products
Number of Career Development Center in community
Support municipal waste management program in community Tree Plantation
Support community for jobs and income from weaving handicraft products
Research and Innovation Spending
Sharing Opportunities, Drawing the Future Program
12%
million cubic meter
tons of carbon dioxide equivalent
1,080 million baht
378 million baht
5,157,418 baht
27 centers 21 communities 24,618 trees
1,183,000 baht1,012Check Dams
45 projects
Scholarship Program
1.2%
Important SD Operating Results Year 2019
Sustainable Development Performance 2019 19
> >
>>>
>
Recycle
Resource Use
Design
Produce
Distribute
ProductUse
Implementation of Circular Economy
in the company
Raw Materials
A Sustainable World through Circular Economy
Circular EconomyThe economic system revolves around a cycle of renewal for end-of-life materials and energy with appropriate processes to circulate resources within the system. Thus, the Circular Economy is not just about repeatable recycles, but comprehensive models which starting at planning and designing for natural resources, manufacturing, consumption, waste management, to reusing in order to restore or repurpose materials in their life cycles instead of being discarded at the end of consumption. In addition, this can also provide sustainability for society, economy, and environment.
SCG Packaging and Sustainable Principles of Circular EconomyThe company conducts business in accordance with Circular Economy principles while aiming to continuously become a regional leading company on Circular Economy.
Annual Report 2019 SCG Packaging Public Company Limited20
Product Design Process • Develop and implement Lightweight G Technology to
improve resource efficiency and eco-friendly aspects. • Develop micro flute to reduce quantity of paper. • Develop recyclable paper bags from recycled paper. • Produce paper food packaging in order to satisfy customers
who start to be green conscious than ever.
Manufacturing Process • Focus on delivering efficiency and sustainability in manufacturing process, for example, using more renewable energy, reusing production waste, reducing overall waste and materials used in the manufacturing process, and using recycled paper in a higher ratio.
• Increase utilization of renewable energy or green energy in manufacturing process, for example, starting to use biogas from anaerobic treatment system and biomass energy as an alternative energy source in manufacturing plants.
• Produce energy from biomass, for example, tree bark from paper mills.
• Utilize solar energy system installed on building’s roofs as an alternative energy source in plants as well as energy for biomass production.
Storage and Recycling Process • Develop a platform for collection and distribution of
information to upgrade storage capacity for returned packaging from end users. The company has cooperated with Doozy Pack and Tesco Lotus to promote and increase used packaging collecting point from customers.
• Join with Tesco Lotus in encouraging consumers to recycle used plastic PET. Used paper packaging in Tesco Lotus’s distribution center is also collected.
• Launch “Paper-X” application on smartphones to enable consumers and retailers to schedule the company to collect recycled paper to be processed at the company’s recycling center.
Implementation Process • Produce “OptiBreathTM” flexible packaging which helps
preserve humidity to prolong freshness of vegetables and fruits, reduce number of food garbage in households and stores, and reduce greenhouse gas (Carbon Footprint).
• Produce “Fest” as alternative eco-friendly food packaging.
21
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22Annual Report 2019 SCG Packaging Public Company Limited
The
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The Board of Directors
Composition of the Board of Directorscomprises the following 10 members:
Directors Position1. Mr. Prasarn Triratvorakul Chairman and Independent Director
2. Mr. Cholanat Yanaranop Vice Chairman
3. Mr. Chumpol NaLamlieng Independent Director
4. Mrs. Kaisri Nuengsigkapian Independent Director
5. Mr. Chalee Chantanayingyong Independent Director
6. Mrs. Pongpen Ruengvirayudh Independent Director
7. Professor Kitipong Urapeepatanapong Independent Director
8. Mr. Tanawong Areeratchakul Director
9. Mr. Thammasak Sethaudom Director
10. Mr. Wichan Jitpukdee Chief Executive Officer
Remarks:
- The directors authorized to sign for and with binding effect on the company are any two directors jointly sign their names together.
- Directors number 1 - 9 are Non-excutive Directors .
- Director number 10 is an Excutive Director.
The Sub-committees
DirectorsThe Audit Committee
(3 members)
The Governance and Nomination Committee
(3 members)
The Remuneration Committee
(3 members)
1. Mr. Prasarn Trairatvorakul - - -2. Mr. Cholanat Yanaranop - Member Member3. Mr. Chumpol NaLamlieng - - Chairman4. Mrs. Kaisri Nuengsigkapian Chairman - -5. Mr. Chalee Chantanayingyong Member Chairman -6. Mrs. Pongpen Ruengvirayudh Member - Member7. Professor Kitipong
Urapeepatanapong - Member -8. Mr. Tanawong Areeratchakul - - -9. Mr. Thammasak Sethaudom - - -10. Mr. Wichan Jitpukdee - - -
Remarks:
- Directors number 1, 3, 4, 5, 6 and 7 meet all the requirements specified in the company’s list of qualifications of an independent director, which are more stringent than the qualifications stipulated by
the Capital Market Supervisory Board.
- Directors number 4 and 6 are knowledgeable and highly competent to be responsible for reviewing the company’s financial statements.
23
Board of Director’s Profile
Mr. Prasarn Trairatvorakul Age 67 years Director qualified as an Independent Director (From August 26, 2019)Position Chairman
Independent Director
Date of Appointment as a DirectorJune 21, 2019
Education/Training • Doctor of Business Administration, Harvard University,
Massachusetts, USA • Master in Business Administration, Harvard University,
Massachusetts, USA • Master of Engineering in Industrial Engineering and
Management, Asian Institute of Technology, Thailand • Bachelor of Engineering in Electrical Engineering (First Class
Honors), Chulalongkorn University • Honorary Doctor of Philosophy, National Institute of
Development Administration • Honorary Doctor of Economics, Chulalongkorn University • Honorary Doctor of Economics, The University of the Thai
Chamber of Commerce • Honorary Doctor of Economics, Khon Kaen University • Honorary Doctor of Business Administration, Rajamangala
University of Technology Suvarnabhumi
Expertise • Business or Core Industries of Other Large Industries • Administration and Large Organization Management • Economics, Investment, Policy Setting and Strategic Planning • Marketing, Accounting and Finance • Corporate Governance and Risk Management
Director Training • The Role of the Chairman Program (RCP) 2/2001, Thai
Institute of Directors Association • Director Certification Program (DCP) 21/2002, Thai Institute
of Directors Association • Ethical Leadership Program (ELP) 2/2015, Thai Institute of
Directors Association • Board Nomination and Compensation Program (BNCP)
5/2018, Thai Institute of Directors Association
Board Member/Management of Other Listed Company in Thailand (2)Since 2019 Chairman, Pruksa Holding Public Company
Limited (Director qualified as an Independent Director effective from 2016)
Since 2017 Independent Director, The Siam Cement Public Company Limited (Director qualified as an Independent Director effective from August 26, 2019)
Position in Other Company/Organization/Institution (14)Since 2019 Chairman, Central Retail Corporation Public
Company LimitedSince 2018 Chairman, Equitable Education FundSince 2018 Director, Siam Sindhorn Co., Ltd.Since 2018 Director, CPB Equity Company LimitedSince 2018 Director, Prince of Songkla UniversitySince 2018 Distinguished Scholar, Faculty of Commerce
and Accountancy, Chulalongkorn UniversitySince 2017 Member, Asset Management Committee of
Vajiravudh CollegeSince 2017 Member, Committee on King’s Scholarships for
Thai Buddhist MonksSince 2017 Chairman of the Council of Trustees and the
Board of Directors, Thailand Development Research Institute (TDRI)
Since 2016 Senior Advisor, CENTRAL GroupSince 2016 Member, Property Management Committee,
Chulalongkorn UniversitySince 2016 Advisor, Board of InvestmentSince 2015 Advisor, Crown Property BureauSince 1998 Director, Thai Red Cross Society
5-year Past Experiences and/or Remarkable Positions2017 - 2019 Chairman, Economic Reform Committee2017 - 2019 Director, Education Reform Committee2017 - 2019 Chairman, Public Procurement Committee2015 - 2019 Director, National Anti-Corruption
Commission2015 - 2019 Director, Committee to Enhance
Competitiveness of the Nation2014 - 2019 Director, State Enterprise Supervisory Board2010 - 2015 Governor, The Bank of Thailand2004 - 2010 President, KASIKORNBANK Public Company
Limited1999 - 2003 Secretary-General, The Securities and Exchange
Commission, Thailand
Shareholdings (Ordinary Shares) (as at December 31, 2019)Held personally: - None -Held by spouse or minor children: - None -
Family Relationship among Directors and Executives - None -
Annual Report 2019 SCG Packaging Public Company Limited24
Mr. Cholanat Yanaranop Age 60 yearsPositions Vice Chairman
Member of the Governance and Nomination Committee Member of Remuneration Committee
Date of Appointment as a DirectorJune 1, 2019
Education/Training • Master of Chemical Engineering, Imperial College London, UK • Bachelor of Environmental Chemical Engineering, (Second
Class Honours), Salford University, Manchester, UK • Advanced Management Program (AMP), Harvard Business
School, USA • Inno-Leadership Program, INSEAD • Top Executives Program, Class 16, Capital Market Academy • TEA 5, Thailand Energy Academy
Expertise • Business or Core Industries of Other Large Industries • Administration and Large Organization Management • Economics, Investment, Policy Setting and Strategic Planning • Marketing, Accounting and Finance • Corporate Governance and Risk Management
Director Training • Directors Accreditation Program (DAP) 39/2005, Thai
Institute of Directors Association • Role of the Chairman Program (RCP) 38/2016, Thai
Institute of Directors Association
Board Member/Management of Other Listed Company in Thailand- None -
Position in Other Company/Organization/Institution (11)Since 2019 Advisor, PT Chandra Asri Petrochemical Tbk.,
Indonesia*Since 2018 Director, SENFI Swiss GmbHSince 2017 Director, SENFI UK LimitedSince 2016 Director, Siam Bioscience Company LimitedSince 2016 Director, Apexcela Company LimitedSince 2014 Director, SENFI Norway AS (Norner Holding AS)Since 2009 Advisor, Thai Institute of Chemical Engineering
and Applied ChemistrySince 2008 Director, Long Son Petrochemicals Company
LimitedSince 2006 Director, BST Elastomers Company LimitedSince 2006 Director, Bangkok Synthetics Company LimitedSince 2006 Director, Petroleum Institute of Thailand
5-year Past Experiences and/or Remarkable Positions2017 - 2019 Executive Vice President, The Siam Cement
Public Company limited2015 - 2016 Vice President, Community Partnerships
Association2014 - 2016 Senior Vice President, The Siam Cement Public
Company Limited2013 - 2015 President, Community Partnerships
Association2012 - 2019 Chairman, Thai Plastic and Chemicals Public
Company Limited2011 - 2019 Commissioner, PT Chandra Asri Petrochemical
Tbk., Indonesia*2008 - 2019 Authorized Representative at the Members
Council, Long Son Petrochemicals Company Limited, Vietnam
2007 - 2019 President, Chemicals Business2007 - 2008 President, The Thai Institute of Chemical
Engineering and Applied Chemistry2005 - 2010 Director, PTT Chemical Public Company
Limited
Shareholdings (Ordinary Shares) (as at December 31, 2019)Held personally: - None -Held by spouse or minor children: - None -
Family Relationship among Directors and Executives- None -
Remark: *Listed in the Stock Exchange of Indonesia
25Management Structure
Mr. Chumpol NaLamlieng Age 72 years Director qualified as an Independent Director (From June 21, 2019) Positions Independent Director
Chairman of the Remuneration Committee
Date of Appointment as a DirectorJune 21, 2019
Education/Training • MBA, Harvard Business School, USA • B.S. Mechanical Engineering, University of Washington, USA
Expertise • Business or Core Industries of SCG and Other Large
Industries • Administration and Large Organization Management • Economics, Investment, Policy Setting and Strategic
Planning • Foreign Affairs • Law • Marketing, Accounting and Finance • Information Technology • Corporate Governance and Risk Management
Director Training • Role of the Chairman Program (RCP) 2/2001, Thai Institute
of Directors Association
Board Member/Management of Other Listed Company in Thailand (1)Since 2014 Independent Director and Chairman of the
Remuneration Committee, The Siam Cement Public Company Limited
Position in Other Company/Organization/Institution (3)Since 2017 Director, CPB Equity Company LimitedSince 2012 Director, Kempin Siam Company Limited Since 2010 Director, Siam Sindhorn Company Limited
5-year Past Experiences and/or Remarkable Positions2012 - 2017 Director, Kempinski International SA2007 - 2016 Independent Director and Chairman of the
Nomination, Compensation and Corporate Governance Committee, The Siam Commercial Bank Public Company Limited
2005 - 2009 Director, British Airways Public Company Limited
2004 - 2011 Chairman, Singapore Telecommunication Company Limited
1993 - 2005 President, The Siam Cement Public Company Limited
Shareholdings (Ordinary Shares) (as at December 31, 2019)Held personally: - None -Held by spouse or minor children: - None -
Family Relationship among Directors and Executives- None -
Annual Report 2019 SCG Packaging Public Company Limited26
Mrs. Kaisri Nuengsigkapian Age 58 years Director qualified as an Independent Director (From June 1, 2019)Positions Independent Director
Chairman of the Audit Committee
Date of Appointment as a DirectorJune 1, 2019
Education/Training • Master of Business Administration, Thammasat
University • Bachelor of Accounting, Thammasat University • Certified Public Accountant
Expertise • Administration and Large Organization Management • Accounting and Finance • Corporate Governance and Risk Management
Director Training • Director Certification Program (DCP), Class 0/2000, Thai
Institute of Directors Association (IOD) • The Role of The Chairman Program (RCP), Class 30/2013,
Thai Institute of Directors Association (IOD) • The Role of the Compensation Committee Program (RCC),
Class 16/2013 Thai Institute of Directors Association (IOD) • Advanced Audit Committee Program (AACP), Class
35/2019, Thai Institute of Directors Association (IOD)
Board Member/Management of Other Listed Company in Thailand (1)Since 2016 Chairman of the Board of Directors and
Chairman of Executive Committee, Mc Group Public Company Limited
Position in Other Company/Organization/Institution (5)Since 2019 Chairman, Buono (Thailand) Company
LimitedSince 2018 Directors, Thai Institute of Directors AssociationSince 2016 Member of Corporate Governance Committee,
The Bank of ThailandSince 2016 Director and Treasurer, Rakkaew
FoundationSince 2016 Director, TOP T 2015 Company Limited
5-year Past Experiences and/or Remarkable Positions2018 - 2019 Independent Director and Member of the
Audit Committee, SCG Ceramics Public Company Limited
2016 - 2017 Advisor, The Securities and Exchange Commission, Thailand
2010 - 2014 Director, The Stock Exchange of Thailand2003 - 2015 President, KPMG Phoomchai Holdings
Company Limited
Shareholdings (Ordinary Shares) (as at December 31, 2019)Held personally: - None -Held by spouse or minor children - None -
Family Relationship among Directors and Executives- None -
27Management Structure
Mr. Chalee Chantanayingyong Age 63 years Director qualified as an Independent Director (From June 21, 2019)Positions Independent Director
Chairman of the Governance and Nomination Committee Member of the Audit Committee
Date of Appointment as a DirectorJune 21, 2019
Education/Training • Master in Business Administration (Finance), Texas A&M
University, USA • Bachelor of Business Administration (Money and Banking),
Thammasat University • Top Executive Program, Class 5, Capital Market Academy • Top Executive Program in Commerce and Trade, Class 5,
Commerce Academy, University of the Thai Chamber of Commerce
Expertise • Supervision in Listed Companies, Financial Advisory, Auditor,
Asset Management Company and Good Governance • Supervision in Commercial Bank and Financial Institutions
Director Training • Director Certification Program (DCP) 7/2001, Thai Institute
of Directors Association • Facilitator for Director Accreditation Program (DAP) and
Audit Committee Program (ACP), Thai Institute of Directors Association
Board Member/Management of Other Listed Company in Thailand - None -
Position in Other Company/Organization/Institution (6)Since 2019 Chairman, Disciplinary Sub-Committee,
Thailand Clearing House Company LimitedSince 2019 Chairman, Appealing Committee, Thailand
Futures Exchange Public Company LimitedSince 2019 Member, Appealing Committee, The Stock
Exchange of ThailandSince 2018 Member, Equitable Education FundSince 2017 Member, Financial Institutions Policy
Committee, The Bank of ThailandSince 2013 Member, the Anti-Corruption Organization of
Thailand
5-year Past Experiences and/or Remarkable Positions2017 - 2018 Chairman, Audit Committee, The Bank of
Thailand2015 - 2018 Member, Corporate Governance Committee,
The Bank of Thailand2015 - 2018 Director, The Bank of Thailand2009 - 2015 Deputy Secretary-General, The Securities and
Exchange Commission, Thailand
Shareholdings (Ordinary Shares) (as at December 31, 2019)Held personally: - None -Held by spouse or minor children: - None -
Family Relationship among Directors and Executives - None -
Annual Report 2019 SCG Packaging Public Company Limited28
Ms. Pongpen Ruengvirayudh Age 64 years Director qualified as an Independent Director (From June 21, 2019)Positions Independent Director
Member of the Audit Committee Member of the Remuneration Committee
Date of Appointment as a DirectorJune 21, 2019
Education/Training • Master of Business Administration (Finance), Katholieke
University, Belgium • Master of Accounting Program (Accounting), Thammasat
University • Bachelor of Accounting (Accounting), Thammasat
University • Advanced Management Program, Wharton School of
Management, USA • Top Executives Program, Class 3, Capital Market Academy • Thammasat Leadership Program, Class 3, Thammasat
University • Programs related to International Portfolio Investment,
Risk Management, Monetary Policy and Central Bank
Expertise • Accounting and Finance • Investment and Investment Strategy • Risk Management
Director Training • Director Certification Program (DCP) 262/2018, Thai
Institute of Directors Association
Board Member/Management of Other Listed Company in Thailand - None -
Position in Other Company/Organization/Institution (5)Since 2019 Chairman, Sub-Committee on Investment
Seeking Benefits from Money and Assets Supervision, Equitable Education Fund
Since 2018 Member, Risk Management Sub-Committee, Government Pension Fund
Since 2017 Chairman, Supervisory Board of The ABF Thailand Bond Index Fund, The Bank of Thailand
Since 2016 Member, Investment Management Sub-Committee, Social Security Fund
Since 2016 Chairman, Sukhumvit Asset Management Company Limited
5-year Past Experiences and/or Remarkable Positions2018 Director, Board of Directors, Government
Savings Bank2015 - 2016 Governor’s Advisor, The Bank of Thailand2013 - 2017 Member, The 19th National Wage Committee,
Ministry of Labour2012 - 2015 Director, Board of Directors, Government
Pension Fund2012 - 2015 Director, Board of Directors, The Bank of
Thailand Member, Monetary Policy Committee, The Bank of Thailand Member, Financial Institutions Policy Committee, The Bank of Thailand Deputy Governor, Monetary Stability, The Bank of Thailand
2010 - 2011 Assistant Governor, Financial Markets Operations Group, The Bank of Thailand
2009 - 2010 Senior Director, Risk Management Policy Department, Financial Institutions Policy Group, The Bank of Thailand
2005 - 2009 Senior Director, Financial Markets and Reserve Management Department, Financial Markets Operations Group, The Bank of Thailand
Shareholdings (Ordinary Shares) (as at December 31, 2019)Held personally: - None -Held by spouse or minor children: - None -
Family Relationship among Directors and Executives- None -
29Management Structure
Professor Kitipong Urapeepatanapong Age 64 years Director qualified as an Independent Director (From August 21, 2019)Positions Independent Director
Member of the Governance and Nomination Committee
Date of Appointment as a DirectorAugust 21, 2019
Education/Training • LL.M., The University of British Columbia, Canada • Master of Laws, Chulalongkorn University • Admitted as Thai Barrister-at-law • Bachelor of Laws (Second Class Honors), Chulalongkorn
University • Top Executive Program in Commerce and Trade, Class 1,
Commerce Academy, University of the Thai Chamber of Commerce
• Senior Executives Program, Class 4, Capital Market Academy
• Director Executive Program, School of Management, Yale University
• Certificate of Completion on Company Directors, Australian Institute of Company Directors
• Certificate Executive Program, Kellogg School of Management, Northwestern University
Expertise • Capital Market Law, Tax Law, Merger and Acquisition,
Restructuring and Family Business
Director Training • Role of the Chairman Program (RCP) 21/2009, Thai
Institute of Directors Association
Board Member/Management of Other Listed Company in Thailand (1)Since 2019 Independent Director and Member of the
Enterprise Risk Management Committee, Pruksa Holding Public Company Limited
Position in Other Company/Organization/Institution (13)Since 2019 Member of the Professional Expert of Steering
Committee, Office of the National Higher Education, Science, Research and Innovation Policy Council
Since 2019 Director, The Stock Exchange of ThailandSince 2019 Director, Rachakarn Asset Management
Company LimitedSince 2018 Director, Thai Institute of Directors AssociationSince 2018 Member, the Professional Expert Committee,
National Commission for Justice Administration Development
Since 2017 Chairman, Cheevamitr Social Enterprise Company Limited
Since 2017 Director, The Hub 99 Company LimitedSince 2017 Vice President, National Reform Committee on
LegalSince 2012 Chairman, Tax and Regulatory Commission,
Thai Chamber of CommerceSince 2009 Chairman, Baker & McKenzie Company LimitedSince 1999 Director, Siam Piwat Retail Holding Company LimitedSince 1999 Executive Director, Siampiwat Company LimitedSince 1993 Director, Business Strategic Holding Company
Limited
5-year Past Experiences and/or Remarkable Positions2014 - 2015 Member, National Reform Council1999 Independent Director, Krung Thai Bank Public
Company Limited
Shareholdings (Ordinary Shares) (as at December 31, 2019)Held personally: - None -Held by spouse or minor children: - None -
Family Relationship among Directors and Executives- None -
Remark: In taking the directorship post of Professor Kitipong Urapeepatanapong, who currently are the Chairman, Director and Shareholder of Baker & McKenzie Ltd. (BM), which is the company providing
legal services to the company and its affiliates with the receipt for such service fees exceeding Baht 2 million per annum, the Board of Directors, excluding Professor Kitipong Urapeepatanapong,
has extensively and thoroughly considered the principle of Fiduciary Duty and duties with responsibilities, care, and loyalty of directors under Section 89/7 of the Securities and Exchange Act, B.E.
2535 (as amended), and thus agreed that his current engagement has no effect on neither the performance as an independent director nor the duty to independently render his opinion; and
his proven strong legal knowledge, expertise and extensive experience in tax law, corporate law, securities law, business law and other regulations relating to the company’s businesses, could
be essential to support the company’s operation, future expansion, business management to be in compliance with laws onwards, as well as to benefit and strengthen the professionalism to
perform duties as the company’s director.
Annual Report 2019 SCG Packaging Public Company Limited30
Mr. Tanawong Areeratchakul Age 56 yearsPosition Director
Date of Appointment as a DirectorMarch 23, 2015
Education/Training • Bachelor of Engineering, Electrical Engineering, King
Mongkut’s University of Technology Thonburi • Advanced Management Program (AMP), Harvard Business
School, USA
Expertise • Business or Core Industries of Other Large Industries • Administration and Large Organization Management • Economics, Investment, Policy Setting and Strategic
Planning • Marketing, Accounting and Finance • Corporate Governance and Risk Management
Director Training • Director Accreditation Program (DAP) 149/2018, Thai
Institute of Directors Association
Board Member/Management in Other Listed Company (1)Since 2019 President, Chemicals Business, The Siam
Cement Public Company Limited
Position in Other Company/Organization/Institution (2)Since 2019 President Commissioner, PT Fajar Surya Wisesa
Tbk., Indonesia*Since 2018 Sub-committee, Royal Project Foundation
Chairman and Director of SCG’s subsidiaries, associates, and other companies which are non-listed in the Stock Exchange of Thailand, as assigned
5-year Past Experiences and/or Remarkable Positions2015 - 2019 Chairman, Thai Cane Paper Public Company
Limited2015 - 2019 Chairman, Phoenix Pulp & Paper Public
Company Limited2015 - 2019 Chairman, Thai Containers Group Company
Limited2015 - 2019 President, Packaging Business, The Siam
Cement Public Company Limited2015 - 2017 Committee, Thai Listed Companies Association2014 - 2018 Executive Director, the Electronic Transactions
Development Agency (Public Organization)2012 - 2015 Vice President - Corporate Administration,
The Siam Cement Public Company Limited
Shareholdings (Ordinary Shares) (as at December 31, 2019)Held personally: - None -Held by spouse or minor children: - None -
Family Relationship among Directors and Executives- None -
Remark: *Listed in the Stock Exchange of Indonesia
31Management Structure
Mr. Thammasak Sethaudom Age 50 yearsPosition Director
Date of Appointment as a DirectorOctober 1, 2018
Education/Training • Master of Business Administration, London Business
School, United Kingdom (Distinction) • Bachelor of Engineering, Electrical Engineering,
Chulalongkorn University • Management Development Program, The Wharton School
of the University of Pennsylvania, USA • Executive Development Program, Columbia University, USA • Change Management, GE • Total Quality Management for Executive, JUSE, Japan • Marketing for Management, Kellogg School, USA • Leadership Coaching, APM Group • Innovation Management Program, Dupont, USA • Orientation Course – CFO Focus on Financial Reporting
Class 3/2018 • Advanced Management Program (AMP), Harvard Business
School, USA
Expertise • Business or Core Industries of Other Large Industries • Administration and Large Organization Management • Economics, Investment, Policy Setting and Strategic Planning • Marketing, Accounting and Finance • Corporate Governance and Risk Management
Director Training • Director Certification Program (DCP) 159/2019, Thai
Institute of Directors Association
Board Member/Management of Other Listed Company in Thailand (1)Since 2018 Vice President - Finance and Investment & CFO,
The Siam Cement Public Company Limited
Position in Other Company/Organization/Institution (2)Since 2019 Director, Thai Listed Companies AssociationSince 2018 Commissioner, PT Chandra Asri Petrochemical
Tbk., Indonesia*
Director of SCG’s subsidiaries, associates, and other companies which are non-listed in the Stock Exchange of Thailand, as assigned
5-year Past Experiences and/or Remarkable Positions2012 - 2018 General Director, Long Son Petrochemicals
Company Limited2008 - 2012 Deputy General Director, Long Son
Petrochemicals Company Limited2004 - 2010 Business Development and Corporate Planning
Director, Chemicals Business2000 - 2004 eCommerce and eBusiness Manager,
Chemicals Business
Shareholdings (Ordinary Shares) (as at December 31, 2019)Held personally: - None -Held by spouse or minor children: - None -
Family Relationship among Directors and Executives - None -
Remark: *Listed in the Stock Exchange of Indonesia
Annual Report 2019 SCG Packaging Public Company Limited32
Mr. Wichan Jitpukdee Age 53 yearsPositions Director
Chief Executive Officer
Date of Appointment as a DirectorJune 1, 2019
Education/Training • Bachelor in Industrial Engineering, Chiang Mai University • Diploma in Pulp & Paper Technology, The University of
Auckland, New Zealand • Advanced Management Program (AMP), Harvard Business
School, USA • Top Executive Program in Commerce and Trade (TEPCoT#10),
University of the Thai Chamber of Commerce • Top Executives Program, Class 29, Capital Market Academy
Expertise • Business or Core Industries of SCG and Other Large Industries • Administration and Large Organization Management • Economics, Investment, Policy Setting and Strategic Planning • Marketing and Finance • Corporate Governance and Risk Management
Director Training • Director Accreditation Program (DAP), Thai Institute of
Directors Association
Board Member/Management of Other Listed Company in Thailand- None -
Position in Other Company/Organization/Institution (1)Since 2019 Director, Thai Chamber of CommerceSince 2019 President Commissioner, PT Fajar Surya Wisesa
Tbk., Indonesia*
Other Position in SCG Packaging • Chairman and Director of SCG Packaging’s subsidiaries,
associates and other companies which are non-listed in the Stock Exchange of Thailand, as assigned by the company
5-year Past Experiences and/or Remarkable Positions2019 President, Packaging Business, The Siam
Cement Public Company Limited2018 - 2019 Managing Director, Thai Containers Group
Company Limited2017 - 2018 President, The Thai Pulp and Paper Industries
Association2014 - 2019 Managing Director, Siam Kraft Industry
Company Limited2011 - 2014 President & CEO, United Pulp and Paper
Company Limited, the Philippines2011 Director, Procurement Office, Siam Kraft
Industry Company Limited2010 - 2011 Director, Corporate Sustainable Development,
SCG Paper Public Company Limited2007 - 2010 Vice President - Manufacturing, United Pulp and
Paper Company Limited, the Philippines
Shareholdings (Ordinary Shares) (as at December 31, 2019)Held personally: - None -Held by spouse or minor children: - None -
Family Relationship among Directors and Executives - None -
Remark: *Listed in the Stock Exchange of Indonesia
33Management Structure
Report of Changes in Securities Holdings of Directors
Directors
SCG Packaging Public Company Limited
AffiliatedCompanies
Ordinary Shares (Shares)
Ordinary Shares (Shares)
Debentures (Units)
As atJanuary 1,
2019
As atDecember
31, 2019
Increase/(decrease)
during financial
year
As atJanuary1, 2019
As atDecember
31, 2019
Increase/(decrease)
during financial
year
As atJanuary1, 2019
As atDecember
31, 2019
Increase/(decrease)
during financial
year
1. Mr. Prasarn Triratvorakul - - - - - - 5,000** 5,000** -
2. Mr. Cholanat Yanaranop - - - 33,500* 33,500* - 49,000** 51,000** 2,000**
3. Mr. Chumpol NaLamlieng - - - 201,000* 201,000* - 51,000** 20,000** (31,000**)
4. Mrs. Kaisri Nuengsigkapian - - - - - - - - -
5. Mr. Chalee Chantanayingyong - - - - - - - - -
6. Mrs. Pongpen Ruengvirayudh - - - - - - - - -
7. Professor Kitipong Urapeepatanapong
- - - - - - 2,000** 2,000** -
8. Mr. Tanawong Areeratchakul - - - - - - - - -
9. Mr. Thammasak Sethaudom - - - - - - - - -
10. Mr. Wichan Jitpukdee - - - - - - - - -Remarks:
According to the Public Limited Companies Act, an “affiliated company” means a public limited company with a relationship to a private company, a public limited company, or companies in the
following manners:
- Any company that has the authority to control the appointment and removal of directors with full management authority or that has majority management authority.
- Holds more than 50% of issued shares.
* Ordinary Shares of The Siam Cement Public Company Limited
** Debentures of The Siam Cement Public Company Limited
Annual Report 2019 SCG Packaging Public Company Limited34
SCG Packaging Management Committee
Composition of Management Committee as at February 1, 2020, comprises the following 7 members:
Names Position
1. Mr. Wichan Jitpukdee Chief Executive Officer
2. Mr. Sangchai Wiriyaumpaiwong Chief Operating Officer - Packaging Paper Business
3. Mr. Suchai Korprasertsri Chief Operating Officer - Consumer and Industrial Packaging Business
4. Mr. Karan Tejasen Chief Operating Officer - Performance and Polymer Packaging Business
5. Mr. Wichan Charoenkitsupat Chief Operating Officer - Fibrous Business
6. Mr. Danaidej Ketsuwan Chief Regional Officer
7. Mr. Kulachet Dharachandra Chief Financial Officer
35Management Structure
Management Structure
Management Committee’s Profile
Mr. Wichan Jitpukdee Age 53 yearsPositions Director
Chief Executive Officer
Education/Training • Bachelor of Engineering (Industrial Engineering), Chiang Mai
University • Diploma in Pulp & Paper Technology, The University of
Auckland, New Zealand • Advanced Management Program (AMP), Harvard Business
School, USA • Top Executive Program in Commerce and Trade (TEPCoT#10),
University of the Thai Chamber of Commerce • Top Executives Program, Class 29, Capital Market Academy
Expertise • Business or Core Industries of Other Large Industries • Administration and Large Organization Management • Economics, Investment, Policy Setting and Strategic Planning • Marketing, Accounting and Finance • Corporate Governance and Risk Management
Director Training • Director Accreditation Program (DAP) 163/2019, Thai Institute
of Directors Association
Board Member/Management of Other Listed Company in Thailand- None -
Position in Other Company/Organization/Institution (2)Since 2019 Director of Executive Board, Thai Chamber of
CommerceSince 2019 President Commissioner, PT Fajar Surya Wisesa
Tbk., Indonesia*
Other Position in SCG Packaging • Chairman and Director of SCG Packaging’s subsidiaries,
associates and other companies which are non-listed as assigned by the company
5-year Past Experiences and/or Remarkable Positions2019 President, Packaging Business, The Siam Cement
Public Company Limited2018 - 2019 Managing Director, Thai Containers Group Company
Limited2017 - 2018 President, The Thai Pulp and Paper Industries
Association2014 - 2019 Managing Director, Siam Kraft Industry
Company Limited2011 - 2014 President & CEO, United Pulp and Paper
Company Limited, the Philippines2011 Director, Procurement Office, Siam Kraft
Industry Company Limited2010 - 2011 Director, Corporate Sustainable Development,
SCG Paper Public Company Limited2007 - 2010 Vice President - Manufacturing, United Pulp and
Paper Company Limited, the Philippines
Shareholdings (Ordinary Shares) (as at December 31, 2019)Held personally: - None -Held by spouse or minor children: - None -
Family Relationship among Directors and Executives- None -
Remark: *Listed in the Stock Exchange of Indonesia
Annual Report 2019 SCG Packaging Public Company Limited36
Mr. Sangchai Wiriyaumpaiwong Age 57 yearsPositions Chief Operating Officer - Packaging Paper Business
Managing Director, Siam Kraft Industry Co., Ltd.
Education/Training • Bachelor of Chemical Engineering, King Mongkut’s University
of Technology Thonburi • Advanced Management Program (AMP), Harvard Business
School, USA
Expertise • Business or Core Industries of Other Large Industries • Administration and Large Organization Management • Economics, Investment, Policy Setting and Strategic
Planning • Marketing, Accounting and Finance • Corporate Governance and Risk Management
Director Training • Director Accreditation Program (DAP) 168/2020, Thai
Institute of Directors Association
Board Member/Management of Other Listed Company in Thailand - None -
Position in Other Company/Organization/Institution (1)Since 2019 Commissioner, PT Fajar Surya Wisesa Tbk.,
Indonesia*
Other Position in SCG Packaging • Director of SCG Packaging’s subsidiaries, associates and
other companies which are non-listed as assigned by the company
5-year Past Experiences and/or Remarkable Positions2018 - 2019 Managing Director, Thai Cane Paper Public
Company Limited2018 - 2019 Managing Director, Siam Kraft Industry
Company Limited2014 - 2018 Managing Director, Vina Kraft Paper Company
Limited, Vietnam
Shareholdings (Ordinary Shares) (as at December 31, 2019)Held personally: - None -Held by spouse or minor children: - None -
Family Relationship among Directors and Executives - None -
Remark: *Listed in the Stock Exchange of Indonesia
37Management Structure
Mr. Suchai Korprasertsri Age 52 yearsPositions Chief Operating Officer - Consumer and Industrial Packaging Business
Managing Director, Thai Containers Group Co., Ltd.
Education/Training • Master of Business Administration, Thammasat
University • Bachelor of Engineering (Industrial Engineering),
Chulalongkorn University • Advanced Management Program (AMP), Harvard Business
School, USA
Expertise • Business or Pulp, Paper and Packaging Industries • Administration and Large Organization Management • Economics, Investment, Policy Setting and Strategic Planning • Marketing, Accounting and Finance • Corporate Governance and Risk Management
Director Training • Director Accreditation Program (DAP) 86/2010, Thai
Institute of Directors Association • Director Certification Program (DCP) 141/2011, Thai
Institute of Directors Association
Board Member/Management of Other Listed Company in Thailand- None -
Position in Other Company/Organization/Institution- None -
Other Position in SCG Packaging • Director of SCG Packaging’s subsidiaries, associates and
other companies which are non-listed as assigned by the company
5-year Past Experiences and/or Remarkable Positions2017 Corporate Marketing Director, SCG Packaging Public
Company Limited2017 Marketing Director and Domestic Marketing Director
(Assignment), Siam Kraft Industry Company Limited2016 Domestic Marketing Director, Siam Kraft Industry
Company Limited2015 General Manager - TCPB/TCCB, Thai Containers
Group Company Limited2013 Regional Operations Director, Thai Containers
Group Company Limited
Shareholdings (Ordinary Shares) (as at December 31, 2019)Held personally: - None -Held by spouse or minor children: - None -
Family Relationship among Directors and Executives- None -
Annual Report 2019 SCG Packaging Public Company Limited38
Mr. Karan Tejasen Age 51 yearsPositions Chief Operating Officer - Performance and Polymer Packaging Business
Managing Director, TC Flexible Packaging Co., Ltd.
Education/Training • Master of Business Administration (Finance), Sasin
Graduate Institute of Business Administration of Chulalongkorn University
• Bachelor of Engineering (Electrical Engineering), Chulalongkorn University
• Advanced Management Program (AMP), Harvard Business School, USA
Expertise • Business or Core Industries of Other Large Industries • Administration and Large Organization Management • Economics, Investment, Policy Setting and Strategic Planning • Marketing, Accounting and Finance • Corporate Governance and Risk Management
Director Training • Director Accreditation Program (DAP) 167/2019, Thai Institute
of Directors Association
Board Member/Management of Other Listed Company in Thailand- None -
Position in Other Company/Organization/Institution (2) • Director and Treasurer, Plastic Industry Club, The Federation
of Thai Industries • Director, Thailand Institute of Packaging and Recycling
Management for Sustainable Environment, The Federation of Thai Industries
Other Position in SCG Packaging • Director of SCG Packaging’s subsidiaries, associates and
other companies which are non-listed as assigned by the company
5-year Past Experiences and/or Remarkable Positions2013 Business Integration Director, Thai Containers
Group Company Limited2012 Director-Regional Operations, Thai Containers
Group Company Limited2010 Director and General Manager, Thai Containers
Group Company Limited2009 Marketing Director, Siam Kraft Industry Company
Limited
Shareholdings (Ordinary Shares) (as at December 31, 2019)Held personally: - None -Held by spouse or minor children: - None -
Family Relationship among Directors and Executives- None -
39Management Structure
Mr. Wichan Charoenkitsupat Age 55 yearsPositions Chief Operating Officer - Fibrous Business
Managing Director, Phoenix Pulp & Paper Public Company Limited
Education/Training • MSC., Paper Science and Engineering, Western Michigan
University, USA • Bachelor of Science (Chemical Engineering), Chulalongkorn
University • Bachelor of Economics (Human Resource Economics),
Ramkhamhaeng University • Advanced Management Program (AMP), IMD business
school (IMD), Switzerland
Expertise • Business or Core Industries of Other Large Industries • Administration and Large Organization Management • Economics, Investment, Policy Setting and Strategic Planning • Production, Research and Development, Marketing, Accounting
and Finance • Corporate Governance and Risk Management
Director Training • Director Accreditation Program (DAP) 168/2020, Thai Institute
of Directors Association
Board Member/Management of Other Listed Company in Thailand- None -
Position in Other Company/Organization/Institution- None -
Other Position in SCG Packaging • Director of SCG Packaging’s subsidiaries, associates and
other companies which are non-listed as assigned by the company
5-year Past Experiences and/or Remarkable Positions2014 President & CEO, United Pulp and Paper,
the Philippines2013 Director, Wang Sala Plant, Siam Kraft Industry
Company Limited2010 Managing Director, Thai Union Paper Industry
Company Limited2006 Director, Product & Technology Development Center,
SCG Packaging Public Company Limited
Shareholdings (Ordinary Shares) (as at December 31, 2019)Held personally: - None -Held by spouse or minor children: - None -
Family Relationship among Directors and Executives- None -
Annual Report 2019 SCG Packaging Public Company Limited40
Mr. Danaidej Ketsuwan Age 47 yearsPositions Chief Regional Officer
President & CEO, United Pulp and Paper Co., Inc., the Philippines
Education/Training • Master of Business Administration, Sloan School of Management,
Massachusetts Institute of Technology, USA • Bachelor of Science, Mechanical Engineering, University of
California, Berkeley, USA
Expertise • Business or Core Industries of Other Large Industries • Administration and Large Organization Management • Economics, Investment, Policy Setting and Strategic Planning • Marketing, Accounting and Finance • Corporate Governance and Risk Management
Director Training • Director Accreditation Program (DAP) 168/2020, Thai Institute
of Directors Association
Board Member/Management of Other Listed Company in Thailand - None -
Position in Other Company/Organization/Institution- None -
Other Position in SCG Packaging • Director of SCG Packaging’s subsidiaries, associates
and other companies which are non-listed as assigned by the company, including Country Director for the Philippines
5-year Past Experiences and/or Remarkable Positions2013 - 2018 Director, Business Planning Office, SCG Packaging
Public Company Limited
Shareholdings (Ordinary Shares) (as at December 31, 2019)Held personally: - None -Held by spouse or minor children: - None -
Family Relationship among Directors and Executives- None -
41Management Structure
Mr. Kulachet Dharachandra Age 46 yearsPosition Chief Financial Officer
Education/Training • Bachelor of Engineering (Chemicals Engineering),
Chulalongkorn University
Expertise • Business or Core Industries of Other Large Industries • Administration and Large Organization Management • Economics, Investment, Policy Setting and Strategic Planning • Marketing, Accounting and Finance • Corporate Governance and Risk Management • Overseas assignment
Director Training - None -
Board Member/Management of Other Listed Company in Thailand - None -
Position in Other Company/Organization/Institution- None -
Other Position in SCG Packaging • Director of SCG Packaging’s subsidiaries, associates and
other companies which are non-listed as assigned by the company
5-year Past Experiences and/or Remarkable Positions2016 - 2019 Vice President Director and Chief Operating
Officer, PT. Chandra Asri Petrochemical Tbk., Indonesia*
2013 - 2016 Director, Corporate Planning Office, The Siam Cement Public Company Limited
2012 - 2013 Director, Finance and Investment Office, SCG Chemicals Company Limited
2010 - 2012 Director, Business Development Office, SCG Chemicals Company Limited
2009 - 2010 Deputy Manager, Business Development Office, SCG Chemicals Company Limited
2005 - 2009 Coordination Manager, Iran Project, SCG Chemicals Company Limited
Shareholdings (Ordinary Shares) (as at December 31, 2019)Held personally: - None -Held by spouse or minor children: - None -
Family Relationship among Directors and Executives- None -
Remark: *Listed in the Stock Exchange of Indonesia
Annual Report 2019 SCG Packaging Public Company Limited42
Remuneration of the Board of Directors and Executives
Remuneration of the Board of Directors The 1/2019 Extraordinary General Meeting of Shareholders on June 21, 2019 resolved to remunerate the Board of the Directors and the sub-committees in the form of fixed monthly and annual fees and meeting allowance, effective June 1, 2019 onwards, as follows:
Board of Directors/Sub-committees Position
Fixed fee (Baht)
Meeting allowance (Baht/person/
meeting)Monthly Annual
The Board of Directors Chairman 150,000 - -(1 Chairman / 9 Directors) Director 100,000 - -
The Audit Committee Chairman - 150,000 45,000(1 Chairman / 2 Members) Member - 100,000 30,000
The Nomination, Remuneration, and Governance Committee* Chairman - 120,000 30,000(1 Chairman / 3 Members) Member - 100,000 20,000
Remark: *The remuneration rates for the Nomination, Remuneration, and Governance Committee were in effect until November 24, 2019.
To enhance the efficiency and effectiveness of the nomination of qualified candidates to replace directors due to retire and leaving office under other circumstances; the determination of remuneration for the Board of Directors, the sub-committees, and the top executives of the company; and the recommendation of governance policies and guidelines for the company and its subsidiaries, the Board of Directors Meeting No. 214 (10/2019) on October 26, 2019 resolved to appoint two sub-committees, namely the Governance and Nomination Committee and the Remuneration Committee, in place of the Nomination, Remuneration, and Governance Committee. The meeting also agreed to propose the same rate of remuneration for the two sub-committees to the General Meeting of Shareholders for approval, effective November 25, 2019 onwards or until the General Meeting of Shareholders resolved to change it as proposed by the Nomination, Remuneration, and Governance Committee. The 2/2019 Extraordinary General Meeting of Shareholders on November 25, 2019 resolved to approve the following rates as proposed by the Board of the Directors:
Chairman: Fixed annual fee of 120,000 Baht and meeting allowance of 30,000 Baht per meeting Member: Fixed annual fee of 100,000 Baht and meeting allowance of 20,000 Baht per meeting/person
The remuneration for the Board of Directors and the Audit Committee was maintained at the rates approved by the 1/2019 Extraordinary General Meeting of Shareholders on June 21, 2019.As of November 25, 2019, the remuneration for the Board of Directors and the sub-committees is as follows.
Directors Position
Fixed Fee (Baht)
Attendance Fee
(Baht/person/ meeting)Monthly Yearly
Board of Directors Chairman 150,000 - -(1 Chairman / 9 Directors) Member 100,000 - -
The Audit Committee Chairman - 150,000 45,000(1 Chairman / 2 Members) Member - 100,000 30,000
The Governance and Nomination committee Chairman - 120,000 30,000(1 Chairman / 2 Members) Member - 100,000 20,000
The Remuneration committee Chairman - 120,000 30,000(1 Chairman / 2 Members) Member - 100,000 20,000
43Management Structure
The Remuneration for the Board of Directors and the Sub-committees in 2019 (January 1 - December 31, 2019)
Director
The Board of Directors
(11 members)
The Audit Committee (3 members)
The Governance and Nomination
Committee*(3 members)
TheRemunerationCommittee*(3 members)
The Nomination Remuneration
and Governance Committee**(4 members)
Total (Baht)
1. Mr. Prasarn Triratvorakul 940,000 - - - - 940,000
2. Mr. Cholanat Yanaranop 700,000 - 30,054 50,054 50,435 830,544
3. Mr. Chumpol NaLamlieng 633,333 - - 72,065 66,522 771,920
4. Mrs. Kaisri Nuengsigkapian 700,000 443,767 - - - 1,143,767
5. Mr. Chalee Chantanayingyong 633,333 291,096 42,065 - 50,435 1,016,929
6. Mrs. Pongpen Ruengvirayudh 633,333 291,096 - 50,054 50,435 1,024,918
7. Professor Kitipong Urapeepatanapong 435,484 - 30,054 - - 465,538
8. Mr. Tanawong Areeratchakul 700,000 - - - - 700,000
9. Mr. Thammasak Sethaudom 700,000 - - - - 700,000
10. Mr. Wichan Jitpukdee 700,000 - - - - 700,000
11. Mr. Roongrote Rangsiyopash 115,000 - - - - 115,000
Total 6,890,483 1,025,959 102,173 172,173 217,827 8,408,616
Remarks:
1. Director number 1 assumed the Chairmanship since June 27, 2019 (assumed membership of the Board of Directors during June 21 - 26, 2019)
2. Director number 3 assumed the Chairmanship of the Remuneration Committee since November 25, 2019 (assumed the Chairmanship of the Governance, Nomination and Remuneration Committee
during August 5 - November 24, 2019)
3. Director number 4 assumed the Chairmanship of the Audit Committee since June 27, 2019 (assumed membership of the Audit Committee during June 1 - 26, 2019)
4. Director number 5 assumed the Chairmanship of Governance and Nomination Committee since November 25, 2019 (assumed the membership of the Nomination, Remuneration and Governance
Committee during August 5 - November 24, 2019)
5. Director number 11 assumed the directorship and the Chairmanship of the Board of Directors until June 23, 2019, therefore, he received remuneration paid during June 1 - 23, 2019.
6. The Board of Directors Meeting No. 214 (10/2019), held on October 26, 2019, passed resolutions as follows:
* Appointed two Sub-committees, namely the Governance and Nomination Committee and the Remuneration Committee, in place of the Nomination, Remuneration and Governance Committee,
effective from November 25, 2019 onwards.
** Dissolved the Nomination, Remuneration and Governance Committee [established on August 5, 2019 by a passed resolution from the Board of Directors Meeting No. 211 (7/2019), effective from
November 25, 2019 onwards.]
Top Executive Remuneration 2019
Benefit-in-cashFor the year ended December 31, 2019, the total remuneration of 85,936,508 Baht was paid in cash to the Top Executives (exclude from remuneration paid for being the Directors), comprised monthly salary, bonus, and variable pay.
Benefit-in-kindFor the year ended December 31, 2019, the company made contributions of 7,543,638 Baht to the provident fund for the executives as the employees of the company.
Annual Report 2019 SCG Packaging Public Company Limited44
2019 Consolidated Financial Statements
of SCG Packaging Public Company Limited and its Subsidiaries
Independent auditor’s report To the Shareholders of SCG Packaging Public Company Limited
Opinion
I have audited the consolidated financial statements of SCG Packaging Public Company Limited and its subsidiaries
(the “Group”), which comprise the consolidated statement of financial position as at 31 December 2019 and 2018,
the consolidated income statement and statements of comprehensive income, changes in shareholders’ equity
and cash flows for years then ended, and notes, comprising a summary of significant accounting policies and other
explanatory information.
In my opinion, the accompanying consolidated financial statements present fairly, in all material respects,
the financial position of the Group as at 31 December 2019 and 2018, its financial performance and cash flows for
years then ended in accordance with Thai Financial Reporting Standards (TFRSs).
Basis for Opinion
I conducted my audit in accordance with Thai Standards on Auditing (TSAs). My responsibilities under those standards
are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section
of my report. I am independent of the Group in accordance with the Code of Ethics for Professional Accountants
issued by the Federation of Accounting Professions that is relevant to my audit of the consolidated financial
statements, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe
that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Other Information
Management is responsible for the other information. The other information comprises the information included
in the annual report, but does not include the consolidated financial statements and my auditor’s report thereon.
My opinion on the consolidated financial statements does not cover the other information and I do not express
any form of assurance conclusion thereon.
In connection with my audit of the consolidated financial statements, my responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
consolidated financial statements or my knowledge obtained in the audit, or otherwise appears to be materially
misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other
information, I am required to report that fact. I have nothing to report in this regard.
Annual Report 2019 SCG Packaging Public Company Limited46
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements
in accordance with TFRSs, and for such internal control as management determines is necessary to enable the
preparation of consolidated financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
My objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with TSAs will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with TSAs, I exercise professional judgment and maintain professional skepticism
throughout the audit. I also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
47
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Annual Report 2019 SCG Packaging Public Company Limited48
Consolidated statement of financial positionSCG Packaging Public Company Limited and its Subsidiaries
Assets Note 2019 2018
Current assets
Cash and cash equivalents 6 4,393,845 2,095,349
Current investments 565,508 803,011
Trade and other current receivables 5, 7 15,198,020 13,704,103
Advance payment for assets 1,715,782 131,654
Short-term loans to related parties 5 4,601 127,152
Current portion of long-term loan to related party 5 - 92,738
Inventories 8 13,276,136 12,894,256
Other current assets 229,431 226,011
Total current assets 35,383,323 30,074,274
Non-current assets
Investments in associates 9 770,754 729,740
Other long-term investments 16,192 16,192
Other non-current receivables 5 980,633 768,513
Investment property 11 187,400 185,575
Property, plant and equipment 12 82,863,567 58,378,647
Goodwill 13 17,612,266 2,289,836
Other intangible assets 14 814,032 307,716
Deferred tax assets 15 744,955 378,649
Others non-current assets 139,923 117,043
Total non-current assets 104,129,722 63,171,911
Total assets 139,513,045 93,246,185
(Prasarn Trairatvorakul)
For and on behalf of the Board of Directors
(Wichan Jitpukdee)
31 December
(in thousand Baht)
Chairman Chief Executive Officer
The accompanying notes are an integral part of these financial statements.
492019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Consolidated statement of financial positionSCG Packaging Public Company Limited and its Subsidiaries
Liabilities and shareholders' equity Note 2019 2018
Current liabilities
Bank overdrafts and short-term borrowings from financial institutions 17 7,131,509 4,312,464
Trade and other current payables 5, 18 10,058,564 8,573,666
Current portion of long-term borrowings from financial institutions 17 2,183,635 151,996
Current portion of finance lease liabilities 19 87,801 13,823
Short-term borrowings from related parties 5 33,827,196 23,415,700
Current income tax payable 604,793 529,798
Short-term provisions 120,546 194,026
Total current liabilities 54,014,044 37,191,473
Non-current liabilities
Long-term borrowings from financial institutions 17 16,318,425 587,129
Finance lease liabilities 19 35,337 15,327
Deferred tax liabilities 15 2,873,568 216,694
Non-current provisions for employee benefits 20 3,375,357 1,905,638
Other non-current liabilities 80,319 70,193
Total non-current liabilities 22,683,006 2,794,981
Total liabilities 76,697,050 39,986,454
31 December
(in thousand Baht)
The accompanying notes are an integral part of these financial statements.
Annual Report 2019 SCG Packaging Public Company Limited50
Consolidated statement of financial positionSCG Packaging Public Company Limited and its Subsidiaries
Liabilities and shareholders' equity Note 2019 2018
Shareholders' equity
Share capital 21
Authorized share capital
- Ordinary share 4,500,000 1,563,000
Issued and paid share capital
- Ordinary share 3,126,000 1,563,000
Share premium 22 1,935,000 1,935,000
Retained earnings
Appropriated
Legal reserve 22 218,600 156,300
General reserve 3,000 3,000
Unappropriated 41,929,779 40,145,205
Other components of shareholders' equity (4,260,330) (3,361,868)
Total equity attributable to owners of the parent 42,952,049 40,440,637
Non-controlling interests 10 19,863,946 12,819,094
Total shareholders’ equity 62,815,995 53,259,731
Total liabilities and shareholders' equity 139,513,045 93,246,185
31 December
(in thousand Baht)
The accompanying notes are an integral part of these financial statements.
512019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Consolidated income statementSCG Packaging Public Company Limited and its Subsidiaries
Note 2019 2018
Revenue from sales 5 89,069,867 87,254,869
Cost of sales 5 (71,651,345) (69,074,282)
Gross profit 17,418,522 18,180,587
Gain on exchange rate 127,474 151,930
Other income 5, 12 713,740 363,021
Profit before expenses 18,259,736 18,695,538
Distribution costs 5, 24 (4,800,607) (4,964,650)
Administrative expenses 5, 25 (4,425,364) (4,582,826)
Employee benefit expense from the amended
severance pay of the Labor Law 20 (527,368) -
Total expenses (9,753,339) (9,547,476)
Profit from operations 8,506,397 9,148,062
Finance costs 5 (1,618,817) (1,039,637)
Share of profit (loss) of associates 9 52,728 (14,603)
Profit before income tax 6,940,308 8,093,822
Tax expense 27 (1,049,048) (1,267,522)
Profit for the year 5,891,260 6,826,300
Profit attributable to:
Owners of the parent 5,268,511 6,065,539
Non-controlling interests 10 622,749 760,761
5,891,260 6,826,300
Basic earnings per share (in Baht)
Attributable to owners of the parent 29 1.69 1.94
Year ended 31 December
(in thousand Baht)
The accompanying notes are an integral part of these financial statements.
Annual Report 2019 SCG Packaging Public Company Limited52
Consolidated statement of comprehensive income SCG Packaging Public Company Limited and its Subsidiaries
Note 2019 2018
Profit for the year 5,891,260 6,826,300
Other comprehensive income
Components of other comprehensive income
that will be reclassified to profit or loss
Exchange differences on translating financial statement (1,146,562) (319,990)
Components of other comprehensive income
that will not be reclassified to profit or loss
Defined benefit plan actuarial losses 20 (200,672) (343,227)
Share of other comprehensive income of associate 9 118 (519)
Income tax relating to components of other comprehensive income
that will not be reclassified to profit or loss 27 38,683 66,578
Total components of other comprehensive income
that will not be reclassified to profit or loss (161,871) (277,168)
Other comprehensive income for the year, net of tax (1,308,433) (597,158)
Total comprehensive income for the year 4,582,827 6,229,142
Total comprehensive income attributable to
Owners of the parent 4,332,205 5,557,199
Non-controlling interests 250,622 671,943
4,582,827 6,229,142
(in thousand Baht)
Year ended 31 December
The accompanying notes are an integral part of these financial statements.
532019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Cons
olid
ated
sta
tem
ent
of c
hang
es in
sha
reho
lder
s' e
quity
SCG
Pac
kagi
ng P
ublic
Com
pany
Lim
ited
and
its S
ubsi
diar
ies
Unap
prop
riate
dTo
tal e
quity
Issue
d Tr
ansla
tion
ofCh
ange
s in
oth
erat
tribu
tabl
e to
Non-
Tota
l
and
paid
Sha
reLe
gal
Gene
ral
finan
cial
com
pone
nts
owne
rs o
fco
ntro
lling
sh
areh
olde
rs'
Note
shar
e pr
emiu
m
rese
rve
rese
rve
stat
emen
tfro
m s
hare
hold
ers
the
pare
ntin
tere
sts
equi
ty
Year
end
ed 3
1 De
cem
ber 2
018
Bala
nce
at 1
Jan
uary
201
81,
563,
000
1,
935,
000
15
6,30
0
3,00
0
42,1
29,3
42
(1
,809
,896
)
(1
,085
,484
)
42
,891
,262
12
,759
,334
55
,650
,596
Tran
sact
ions
with
own
ers,
reco
rded
dire
ctly
in s
hare
hold
ers’
equ
ity
Cont
ribut
ions
by
and
dist
ribut
ions
to
owne
rs o
f the
par
ent
Divid
ends
30-
-
-
-
(7
,815
,000
)
-
-
(7,8
15,0
00)
(254
,454
)
(8
,069
,454
)
Tota
l con
trib
utio
ns b
y an
d di
strib
utio
ns to
owne
rs o
f the
par
ent
-
-
-
-
(7,8
15,0
00)
-
-
(7,8
15,0
00)
(254
,454
)
(8
,069
,454
)
Chan
ges
in o
wner
ship
inte
rest
s in
sub
sidia
ries
Chan
ges
that
do
not r
esul
t in
a lo
ss o
f con
trol
-
-
-
-
-
-
(192
,824
)
(192
,824
)
(447
,193
)
(6
40,0
17)
Chan
ges
that
resu
lt in
an
acqu
isitio
n or
a lo
ss o
f con
trol
4-
-
-
-
-
-
-
-
89
,464
89
,464
Tota
l cha
nges
in o
wner
ship
inte
rest
s in
sub
sidia
ries
-
-
-
-
-
-
(192
,824
)
(192
,824
)
(3
57,7
29)
(550
,553
)
Tota
l tra
nsac
tions
with
own
ers,
reco
rded
dire
ctly
in s
hare
hold
ers’
equ
ity-
-
-
-
(7
,815
,000
)
-
(1
92,8
24)
(8
,007
,824
)
(6
12,1
83)
(8,6
20,0
07)
Com
preh
ensiv
e in
com
e fo
r the
yea
r
Prof
it or
loss
-
-
-
-
6,06
5,53
9
-
-
6,06
5,53
9
760,
761
6,
826,
300
Othe
r com
preh
ensiv
e in
com
e-
-
-
-
(2
34,6
76)
(273
,664
)
-
(5
08,3
40)
(8
8,81
8)
(597
,158
)
Tota
l com
preh
ensiv
e in
com
e fo
r the
yea
r-
-
-
-
5,
830,
863
(273
,664
)
-
5,55
7,19
9
67
1,94
3
6,
229,
142
Bala
nce
at 3
1 De
cem
ber 2
018
1,56
3,00
0
1,93
5,00
0
156,
300
3,
000
40
,145
,205
(2,0
83,5
60)
(1,2
78,3
08)
40,4
40,6
37
12,8
19,0
94
53,2
59,7
31
Reta
ined
ear
ning
s Ot
her c
ompo
nent
s of
sha
reho
lder
s' eq
uity
Appr
opria
ted
(in th
ousa
nd B
aht)
The
acc
ompa
nyin
g no
tes
are
an in
tegr
al p
art o
f the
se fi
nanc
ial s
tate
men
ts.
Annual Report 2019 SCG Packaging Public Company Limited54
Cons
olid
ated
sta
tem
ent
of c
hang
es in
sha
reho
lder
s' e
quity
SCG
Pac
kagi
ng P
ublic
Com
pany
Lim
ited
and
its S
ubsi
diar
ies
Unap
prop
riate
dTo
tal e
quity
Issue
d Tr
ansla
tion
ofCh
ange
s in
oth
erat
tribu
tabl
e to
Non-
Tota
l
and
paid
Sha
reLe
gal
Gene
ral
finan
cial
com
pone
nts
owne
rs o
fco
ntro
lling
sh
areh
olde
rs'
Note
shar
e pr
emiu
m
rese
rve
rese
rve
stat
emen
tfro
m s
hare
hold
ers
the
pare
ntin
tere
sts
equi
ty
Reta
ined
ear
ning
s Ot
her c
ompo
nent
s of
sha
reho
lder
s' eq
uity
Appr
opria
ted
(in th
ousa
nd B
aht)
Year
end
ed 3
1 De
cem
ber 2
019
Bala
nce
at 1
Jan
uary
201
91,
563,
000
1,
935,
000
15
6,30
0
3,00
0
40,1
45,2
05
(2
,083
,560
)
(1
,278
,308
)
40
,440
,637
12
,819
,094
53
,259
,731
Tran
sact
ions
with
own
ers,
reco
rded
dire
ctly
in s
hare
hold
ers’
equ
ity
Cont
ribut
ions
by
and
dist
ribut
ions
to
owne
rs o
f the
par
ent
Tran
sfer t
o le
gal r
eser
ve-
-
62
,300
-
(62,
300)
-
-
-
-
-
Stoc
k di
viden
ds21
, 30
1,56
3,00
0
-
-
-
(1
,563
,000
)
-
-
-
-
-
Divid
ends
30-
-
-
-
(1
,736
,667
)
-
-
(1,7
36,6
67)
(230
,850
)
(1
,967
,517
)
Tota
l con
trib
utio
ns b
y an
d di
strib
utio
ns to
owne
rs o
f the
par
ent
1,56
3,00
0
-
62
,300
-
(3
,361
,967
)
-
-
(1
,736
,667
)
(2
30,8
50)
(1,9
67,5
17)
Chan
ges
in o
wner
ship
inte
rest
s in
sub
sidia
ries
Chan
ges
that
do
not r
esul
t in
a lo
ss o
f con
trol
-
-
-
-
-
-
(84,
126)
(84,
126)
95,2
67
11,1
41
Chan
ges
that
resu
lt in
an
acqu
isitio
n or
a lo
ss o
f con
trol
4-
-
-
-
-
-
-
-
6,
929,
813
6,92
9,81
3
Tota
l cha
nges
in o
wner
ship
inte
rest
s in
sub
sidia
ries
-
-
-
-
-
-
(84,
126)
(8
4,12
6)
7,02
5,08
0
6,94
0,95
4
Tota
l tra
nsac
tions
with
own
ers,
reco
rded
dire
ctly
1,
563,
000
-
62,3
00
-
(3,3
61,9
67)
-
(84,
126)
(1
,820
,793
)
6,
794,
230
4,
973,
437
Com
preh
ensiv
e in
com
e fo
r the
yea
r
Prof
it or
loss
-
-
-
-
5,26
8,51
1
-
-
5,26
8,51
1
622,
749
5,
891,
260
Othe
r com
preh
ensiv
e in
com
e-
-
-
-
(1
21,9
70)
(814
,336
)
-
(9
36,3
06)
(3
72,1
27)
(1,3
08,4
33)
Tota
l com
preh
ensiv
e in
com
e fo
r the
yea
r-
-
-
-
5,
146,
541
(814
,336
)
-
4,33
2,20
5
25
0,62
2
4,
582,
827
Bala
nce
at 3
1 De
cem
ber 2
019
3,12
6,00
0
1,93
5,00
0
218,
600
3,
000
41
,929
,779
(2,8
97,8
96)
(1,3
62,4
34)
42,9
52,0
49
19,8
63,9
46
62,8
15,9
95
The
acc
ompa
nyin
g no
tes
are
an in
tegr
al p
art o
f the
se fi
nanc
ial s
tate
men
ts.
552019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Consolidated statement of cash flowsSCG Packaging Public Company Limited and its Subsidiaries
Note 2019 2018
Cash flows from operating activities
Profit for the year 5,891,260 6,826,300
Adjustments for
Tax expense 1,049,048 1,267,522
Depreciation and amortization 5,990,773 5,381,693
Bad debt and doubtful debts expenses 32,264 42,556
Loss on inventories devaluation 93,441 170,457
Employee benefit expense 849,854 239,433
Unrealized gains on foreign currency exchange (164,169) (9,060)
Share of loss (profit) of associates 9 (52,728) 14,603
Loss on sales of investments and other - 9,500
Impairment losses on property, plant and equipment
and other intangible assets 36,623 24,126
Loss (gain) on sales of property, plant and equipment
and other intangible assets (277,002) 16,357
Dividend income - (10,762)
Interest income (114,132) (61,135)
Interest expense 1,650,495 988,501
Cash flows generated from operations before
changes in operating assets and liabilities 14,985,727 14,900,091
Decrease in operating assets
Trade and other current receivables 2,421,719 169,792
Inventories 2,199,320 292,545
Other current assets and other non-current assets 57,185 113,974
Net decrease in operating assets 4,678,224 576,311
Year ended 31 December
(in thousand Baht)
The accompanying notes are an integral part of these financial statements.
Annual Report 2019 SCG Packaging Public Company Limited56
Consolidated statement of cash flowsSCG Packaging Public Company Limited and its Subsidiaries
Note 2019 2018
Increase (decrease) in operating liabilities
Trade and other current payables (1,979,544) (286,597)
Provision for employee benefits (151,434) (172,760)
Other current liabilities and other non-current liabilities 55,121 8,268
Net decrease in operating liabilities (2,075,857) (451,089)
Net cash flows generated from operations 17,588,094 15,025,313
Income tax paid (1,573,937) (773,180)
Net cash flows provided by operating activities 16,014,157 14,252,133
Cash flows from investing activities
Acquisition of subsidiaries, net of cash acquired 4 (24,022,251) (451,470)
Proceeds from sales of investment - 257,309
Current investments (715,963) (555,809)
Proceeds from sales of property, plant and equipment
and other intangible assets 520,723 151,256
Acquisition of property, plant and equipment (7,914,253) (6,870,171)
Acquisition of investment property - (64,411)
Acquisition of other intangible assets (87,290) (77,220)
Proceeds from (repayment of) short-term loans to related parties 114,156 (126,341)
Proceed from current portion of long-term loan to related party 92,738 -
Dividends received 11,832 26,634
Interest received 110,056 51,080
Net cash flows used in investing activities (31,890,252) (7,659,143)
Year ended 31 December
(in thousand Baht)
The accompanying notes are an integral part of these financial statements.
572019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Consolidated statement of cash flowsSCG Packaging Public Company Limited and its Subsidiaries
Note 2019 2018
Cash flows from financing activities
Proceeds from change in ownership interests in subsidiaries
that do not result in a loss of control 193,777 -
Payments of changes in ownership interests in subsidiaries
that do not result in a loss of control 4 (192,187) (640,017)
Proceeds from (payments of) borrowings
Increase (decrease) in bank overdrafts and short-term borrowings
from financial institutions 36,317 (933,029)
Increase in short-term borrowing from related parties 10,415,065 7,919,137
Proceeds from long-term borrowings from financial institutions 13,136,727 351,489
Payments of long-term borrowings from financial institutions (1,576,976) (3,307,059)
Payments of finance lease liabilities (65,136) (140,960)
Net increase in borrowings 21,945,997 3,889,578
Dividends paid
Dividends paid to owners of the parent (1,736,667) (7,815,000)
Dividends paid to non-controlling interests (221,294) (254,454)
Total dividends paid (1,957,961) (8,069,454)
Interest paid (1,732,722) (1,012,063)
Net cash flows provided by (used in) financing activities 18,256,904 (5,831,956) Net increase in cash and cash equivalents 2,380,809 761,034
Effect of exchange rate changes on cash and cash equivalents (82,313) (49,322)
Cash and cash equivalents at beginning of the year 2,095,349 1,383,637
Cash and cash equivalents at end of the year 4,393,845 2,095,349
Year ended 31 December
(in thousand Baht)
The accompanying notes are an integral part of these financial statements.
Annual Report 2019 SCG Packaging Public Company Limited58
Consolidated statement of cash flowsSCG Packaging Public Company Limited and its Subsidiaries
2019 2018
Supplementary information for cash flows
Non-cash transactions
Account payables from purchase of assets 978,808 538,639
Accrued investments 961,368 181,783
Stock dividends 1,563,000 -
Year ended 31 December
(in thousand Baht)
The accompanying notes are an integral part of these financial statements.
592019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Note Contents
1 General information
2 Basis of preparation of the financial statements
3 Significant accounting policies
4 Acquisitions of business and changes in ownership interests in subsidiaries
5 Related parties
6 Cash and cash equivalents
7 Trade and other current receivables
8 Inventories
9 Investments in associates
10 Non-controlling interests
11 Investment property
12 Property, plant and equipment
13 Goodwill
14 Other intangible assets
15 Deferred tax assets (deferred tax liabilities)
16 Changes in liabilities arising from financing activities
17 Bank overdrafts and borrowings from financial institutions
18 Trade and other current payables
19 Finance lease liabilities
20 Non-current provisions for employee benefits
21 Share capital
22 Reserves and other components of shareholders’ equity
23 Business segment information
24 Distribution costs
25 Administrative expenses
26 Employee benefit expenses
27 Income tax
28 Promotional privileges
29 Basic earnings per share
30 Dividends
Annual Report 2019 SCG Packaging Public Company Limited60
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Note Contents
31 Agreements
32 Financial instruments
33 Commitments and contingent liabilities
34 Capital management
35 Others
36 Events after the reporting period
37 Thai Financial Reporting Standards (TFRSs) that have been issued but are not yet effective
612019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
These notes form an integral part of the consolidated financial statements.
The consolidated financial statements issued for Thai statutory and regulatory reporting purposes are
prepared in the Thai and English languages, and were approved and authorized for issue by the audit
committee, as appointed by the Board of Directors of the Company, on 18 February 2020.
1 General information
SCG Packaging Public Company Limited, the “Company”, is a company incorporated in Thailand.
The head office of the Company is located at 1 Siam Cement Road, Bangsue, Bangkok 10800, Thailand.
The parent company is The Siam Cement Public Company Limited. It was incorporated in Thailand.
The Company and its subsidiaries, the “Group” are mainly engaged in the manufacturing of packaging paper,
packaging, pulp and printing and writing paper.
Details of the Company’s subsidiaries, which have significant operations and were included in the
consolidated financial statements, are as follows:
2019 2018
Direct / Indirect Holding (%)
Registered in Thailand
Siam Kraft Industry Co., Ltd. 100 100
SCGP Excellence Training Center Co., Ltd. 100 100
SCG Paper Energy Co., Ltd. 100 100
SCGP Solutions Co., Ltd. 100 100
SCGP Rigid Plastics Co., Ltd. 100 -
Thai Cane Paper Public Company Limited 98.20 98.20
Visy Packaging (Thailand) Limited 80 -
Precision Print Co., Ltd. 75 75
Thai Containers Group Co., Ltd. 70 70
Thai Containers Khonkaen Co., Ltd. 70 70
Thai Containers Rayong Co., Ltd. 70 70
Annual Report 2019 SCG Packaging Public Company Limited62
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
2019 2018
Direct / Indirect Holding (%)
Dyna Packs Co., Ltd. 70 70
Orient Containers Co., Ltd. 70 70
D-In Pack Co., Ltd. 70 70
Phoenix Pulp & Paper Public Company Limited 69.58 69.58
Phoenix Utilities Co., Ltd. 69.58 69.58
Thai Paper Co., Ltd. 69.58 69.58
The Siam Forestry Co., Ltd. 69.58 69.58
Thai Union Paper Public Company Limited* 69.55 69.55
TC Flexible Packaging Co., Ltd. 52.50 52.50
SCGP-T Plastics Co., Ltd. 51 100
Tawana Container Co., Ltd. 50.40 50.40
Conimex Co., Ltd. 38.25 75
Prepack Thailand Co., Ltd. 37.80 37.80
Registered in Philippines
United Pulp and Paper Co., Inc.** 99.70 99.70
Paperlink Inter-Trade Corporation** - 99.70
Registered in Vietnam
Vina Kraft Paper Co., Ltd. 70 70
New Asia Industries Co., Ltd. 70 70
Alcamax Packaging (Vietnam) Co., Ltd. 70 70
AP Packaging (Hanoi) Co., Ltd. 70 70
Packamex (Vietnam) Co., Ltd. 70 70
Tin Thanh Packing Joint Stock Company 47.24 47.24
Registered in Singapore
SCGP Solutions (Singapore) Pte. Ltd. 100 100
TCG Rengo (S) Limited* 70 70
* Currently in the liquidation process.
** Paperlink Inter-Trade Corporation amalgamate with United Pulp and Paper Co., Inc. which has already been completed on 25 November 2019.
632019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
2019 2018
Direct / Indirect Holding (%)
Registered in Indonesia
PT Indocorr Packaging Cikarang 70 56
PT Indoris Printingdo 69.97 69.97
PT Primacorr Mandiri 67.90 67.90
PT Fajar Surya Wisesa Tbk. 55.24 -
PT Dayasa Aria Prima 55.23 -
Registered in Malaysia
Interpress Printers Sendirian Berhad 68.30 68.30
Most of the above subsidiaries were established in Thailand unless otherwise stated. There was no material
change in the percentage of holding from 2018, except as discussed in note 4.
During 2019, the Group acquired the ordinary shares of PT Fajar Surya Wisesa Tbk. and subsidiary, which is
incorporated in Indonesia, and Visy Packaging (Thailand) Limited, which is incorporated in Thailand. These
companies are included in the Group’s consolidated financial statements, as discussed in note 4.
2 Basis of preparation of the financial statements
(a) Statement of compliance
The consolidated financial statements are prepared in accordance with Thai Financial Reporting Standards
(“TFRSs”) and guidelines promulgated by the Federation of Accounting Professions.
The new and revised TFRSs are effective for annual accounting periods beginning on or after 1 January 2019.
The initial application of these new and revised TFRSs has resulted in no material impact on the Group’s
accounting policies, calculation method, financial performance and position.
The Group has initially applied TFRS 15 Revenue from Contracts with Customers (“TFRS 15”) since 1 January
2019. TFRS 15 establishes a comprehensive framework for determining how much and when revenue is
Annual Report 2019 SCG Packaging Public Company Limited64
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
recognized. It replaced TAS 18 Revenue (“TAS 18”), TAS 11 Construction Contracts (“TAS 11”) and related
interpretations.
Under TFRS 15, the Group recognizes revenue when a customer obtains control of the goods or services in
an amount that reflects the consideration to which the Group expects to be entitled to. In addition,
judgment is required in determining the timing of the transfer of control for revenue recognition - at a point
in time or over time. The Group has a timing of revenue recognition mainly from sales of goods which is
recognized at a point in time.
In addition, the Group has not early adopted a number of new and revised TFRS which are not yet effective
for the current period in preparing these financial statements. Those new and revised TFRSs that are relevant
to the Group’s operations are disclosed in note 37.
(b) Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis except for the
following material items in the consolidated statements of financial position:
• contingent consideration assumed in a business combination are measured at fair value.
• biological assets are measured at fair value less cost to sell.
• defined benefit obligations are measured at the present value of non-current provisions for defined
benefit plans.
(c) Functional and presentation currency
The consolidated financial statements are prepared and presented in Thai Baht, which is the Company’s
functional currency. All financial information presented in Thai Baht has been rounded in the notes to
the financial statements to the nearest thousand unless otherwise stated.
652019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
(d) Use of estimates and judgments
The preparation of financial statements in conformity with TFRSs requires management to make judgments,
estimates and assumptions that affect the application of the Group’s accounting policies. Actual results may
differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized prospectively.
Information about significant areas of estimation uncertainty and critical assumptions in applying accounting
policies that have the most significant effect on the amount recognized in the financial statements is
included in the following notes:
Note 4 Acquisition of subsidiary: fair value of the consideration transferred
(including contingent consideration) and fair value of the assets acquired
and liabilities assumed;
Note 9, 11, 12, 13 and 14 Impairment test: key assumptions underlying recoverable amounts;
Note 7, 8, 9, 11, 12, 13 and 14 Measurement of the recoverable amounts of each asset and cash-
generating units;
Note 15 and 27 Recognition of deferred tax assets: availability of future taxable profit
against which deductible temporary differences and tax losses carried
forward can be utilized;
Note 20 Measurement of non-current provision for defined benefit plans: key
actuarial assumptions; and
Measurement of fair values
A number of the Group’s accounting policies and disclosures require the measurement of fair values, for
both financial and non-financial assets and liabilities.
Annual Report 2019 SCG Packaging Public Company Limited66
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
The Group has an established framework with respect to the measurement of fair values. This includes a
valuation team that has overall responsibility for overseeing all significant fair value measurements, including
Level 3 fair values, and reports directly to the CFO.
The valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third party
information, such as broker quotes or pricing services, is used to measure fair values, then the valuation
team assesses the evidence obtained from the third parties to support the conclusion that these valuations
meet the requirements of TFRS, including the level in the fair value hierarchy in which these valuations
should be classified.
Significant valuation issues are reported to the Group’s Audit Committee.
When measuring the fair value of an asset or a liability, the Group uses observable market data as far as
possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used
in the valuation techniques as follows:
• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can access at the measurement date.
• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
• Level 3: inputs are unobservable inputs for the asset or liability.
If the inputs used to measure the fair value of an asset or liability might be categorized in different levels of
the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of
the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Group recognizes transfers between levels of the fair value hierarchy at the end of the reporting period
during which the change has occurred.
Further information about the assumptions made in measuring fair values is included in the following notes:
• Note 4 Acquisitions of business and changes in ownership interests in subsidiaries;
• Note 11 Investment property; and
• Note 32 Financial instruments.
672019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
3 Significant accounting policies
The accounting policies set out below have been consistently applied to all periods presented in these
financial statements.
(a) Basis of consolidation
The consolidated financial statements relate to the Group and the Group’s interests in associates.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealized income or expenses arising from intra-group
transactions, are eliminated. Unrealized gains arising from transactions with equity-accounted investees are
eliminated against the investment to the extent of the Group’s interest in the investee. Unrealized losses
are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of
impairment.
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has
rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power over the entity. The financial statements of subsidiaries are included in the consolidated
financial statements from the date on which control commences until the date on which control ceases.
Non-controlling interests
At the acquisition date, the Group measures any non-controlling interest at its proportionate interest in the
identifiable net assets of the acquiree.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as
equity transactions.
Annual Report 2019 SCG Packaging Public Company Limited68
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Loss of control
When the Group loses control over a subsidiary, it derecognizes the assets and liabilities of the subsidiary,
and any related non-controlling interests and other components of equity. Any resulting gain or loss is
recognized in profit or loss. Any interest retained in the former subsidiary is measured at fair value when
control is lost.
Interests in equity-accounted investees
The Group’s interests in equity-accounted investees comprise interests in associates.
Associates are those entities in which the Group has significant influence, but not control, over the financial
and operating policies.
Interests in associates are accounted for using the equity method. They are initially recognized at cost, which
includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include
the Group’s share of the profit or loss and other comprehensive income of equity-accounted investees,
until the date on which significant influence ceases.
Business combinations
The Group applies the acquisition method for all business combinations when control is transferred to
the Group, as described in subsidiaries section, other than those with entities under common control.
The acquisition date is the date on which control is transferred to the acquirer. Judgment is applied in
determining the acquisition date and determining whether control is transferred from one party to another.
In a business combination achieved in stages, the Group shall remeasure its previously held equity interest
of investment in the acquiree to its acquisition-date fair value and recognize the resulting gain or loss in
profit or loss.
692019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Goodwill is measured as the fair value of the consideration transferred including the recognized amount of any
non-controlling interest in the acquiree, less the fair value amount of the identifiable assets acquired and
liabilities assumed, all measured as of the acquisition date. Any gain on bargain purchases is recognized in
profit for the period immediately.
Consideration transferred includes the fair values of the assets transferred, liabilities incurred by
the Group to the previous owners of the acquiree, and equity interests issued by the Group. Consideration
transferred also includes the fair value of any contingent consideration and share-based payment awards of
the acquiree that are replaced mandatorily in the business combination.
A contingent liability of the acquiree is assumed in a business combination only if such a liability represents
a present obligation and arises from a past event, and its fair value can be measured reliably.
Transaction costs that the Group incurs in connection with a business combination, such as legal fees, and
other professional and consulting fees are expensed as incurred.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which
the combination occurs, the Group reports provisional amounts for the items for which the accounting is
incomplete. Those provisional amounts are adjusted during the measurement period, or additional assets
or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed
at the acquisition date that, if known, would have affected the amounts recognized at that date.
(b) Foreign currencies
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of the Group entities
at the foreign exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the end of the reporting period are
translated to the functional currencies at the exchange rates at that date. Foreign exchange differences are
recognized in profit or loss.
Annual Report 2019 SCG Packaging Public Company Limited70
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Non-monetary assets and liabilities which include those arising from the payment or receipt of advance
consideration measured at cost in foreign currencies are translated to the functional currency at the
exchange rates at the dates of the transactions.
Non-monetary assets and liabilities measured at fair value in foreign currencies are translated to the
functional currency at the exchange rates at the dates on which the fair value was measured.
Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on
acquisition, are translated to Thai Baht at the exchange rates at the end of reporting period.
Goodwill and fair value adjustments arising on the acquisition of foreign operations are stated at exchange
rates at the date of the transaction for acquisition occurred before the date 1 January 2013, and stated at
exchange rates at the end of reporting period for acquisition beginning on or after 1 January 2013.
The revenues and expenses of foreign operations are translated to Thai Baht at rates approximating the
exchange rates at the dates of the transactions and using the weighted average method.
Foreign exchange differences arising on translation are recognized in other comprehensive income and
presented in other components of equity until disposal of the foreign operation, except to extent that the
translation difference is allocated to non-controlling interests.
When a foreign operation is disposed of in its entirety or partially such that control or significant influence is
lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to
profit or loss as part of the gain or loss on disposal. If the Group disposes of part of its interest in a subsidiary
but retains control, then the relevant proportion of the cumulative amount is reattributed to non-controlling
interests. When the Group disposes of only part of an associate while retaining significant influence, the
relevant proportion of the cumulative amount is reclassified to profit or loss.
When the settlement of a monetary item receivable from or payable to a foreign operation is neither
planned nor likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary
712019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
item are considered to form part of a net investment in a foreign operation and are recognized in other
comprehensive income, and presented in other components of equity until disposal of the foreign operation.
(c) Cash and cash equivalents
Cash and cash equivalents in the statements of cash flows comprise cash on hand, saving deposits, current
deposits and highly liquid short-term investments that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value.
In addition, bank overdrafts that are repayable on demand are a component of financing activities for the
purpose of the statement of cash flows.
(d) Trade and other receivables and contract assets
A receivable is recognized when the Group has an unconditional right to receive consideration. If revenue
has been recognized before the Group has an unconditional right to receive consideration, the amount is
presented as a contract asset.
A receivable and a contract asset are measured at fair value less allowance for doubtful accounts which are
assessed on analysis of payment histories and future expectations of customer payments. Bad debts are
written off when incurred.
(e) Inventories
Inventories are measured at the lower of cost and net realizable value.
Cost is calculated using the following formula:
Finished goods - at standard costs which approximate actual production costs
Merchandise - at average cost
Goods in process - at standard cost
Raw materials, spare parts,
stores, supplies and others
-
at average cost
Annual Report 2019 SCG Packaging Public Company Limited72
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing
the inventories to their present location and condition. In the case of manufactured inventories and goods
in process, cost includes an appropriate share of overheads based on normal operating capacity.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs
to complete and to make the sale.
(f) Non-current assets classified as held for sale
Non-current assets (or disposal groups comprising assets and liabilities) are classified as held for sale if it is
highly probable that they will be recovered primarily through sale rather than through continuing use which
are available for immediate sale and measured at the lower of their carrying amount and fair value less cost
to sell. Any impairment loss on a disposal group is allocated first to goodwill, and then to remaining assets
and liabilities on a pro rata basis, except that no loss is allocated to inventories, financial assets and deferred
tax assets. Impairment losses on initial classification as held for sale or held for distribution and subsequent
gains and losses on remeasurement are recognized in profit or loss.
Once non-current assets classified as held for sale are no longer depreciated or amortized, and any
equity-accounted investee is no longer equity accounted.
(g) Biological assets
Biological assets are measured at fair value less costs to sell (the incremental cost directly attributable to
the disposal of a biological asset), except for the case where the fair value cannot be measured reliably,
there are measured at cost less accumulated depreciation and impairment losses. Gain or losses on changes
in fair value less costs to sell are recognized in profit or loss.
732019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
(h) Investments
Investments in associates
Investments in associates in the consolidated financial statements are accounted for using the equity method.
Investments in other debt and equity securities
Equity securities which are not marketable are stated at cost less any accumulated impairment losses.
Disposal of investments
On disposal of an investment, the difference between net disposal proceeds and the carrying amount together
with the associated cumulative gain or loss that was reported in equity is recognized in profit or loss.
If the Group disposes of part of its holding of a particular investment, the deemed cost of the part sold is
determined using the weighted average method applied to the carrying amount of the total holding of the
investment.
(i) Investment property
Investment properties are properties which are held to earn rental income, for capital appreciation or for
both, but not for sale in the ordinary course of business, use in the production or supply of goods or services
or for administrative purposes.
Investment properties are measured at cost less accumulated depreciation and accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the investment property. The
cost of self-constructed investment property includes the cost of materials and direct labor, and other costs
directly attributable to bringing the investment property to a working condition for its intended use and
capitalized borrowing costs of a qualifying assets.
Annual Report 2019 SCG Packaging Public Company Limited74
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Depreciation is charged to profit or loss on a straight-line basis over the estimated useful lives of each
property. The estimated useful lives are as follows:
Land improvements 20 years
Buildings and structures 5, 20 years
Reclassification to property, plant and equipment
When the use of an investment property changes such that it is reclassified as property, plant and
equipment, its carrying amount at the date of reclassification becomes its cost for subsequent accounting.
(j) Finance lease
The Group recognized finance leases as assets and liabilities in the consolidated statement of financial
position at amounts equal to the fair value of the leased property or, if lower, the present value of the
minimum lease payments, each determined at the inception of the lease. Lease payments are apportioned
between the finance charge and the reduction of the outstanding liabilities. The finance charge is allocated
to the periods during the lease term so as to produce a constant periodic rate of interest on the remaining
balance of the liability for each period.
(k) Property, plant and equipment
Owned assets
Property, plant and equipment are measured at cost less accumulated depreciation and accumulated
impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-
constructed assets includes the cost of materials and direct labor, any other costs directly attributable to
bringing the assets to the location and condition necessary for it to be capable of operating for their intended
use, the costs of dismantling and removing the items and restoring the site on which they are located and
capitalized borrowing costs of a qualifying asset. Licensed software that is integral to the functionality of the
related equipment is capitalized as part of that equipment.
752019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
When parts of an item of property, plant and equipment have different consumption patterns and useful
lives, they are accounted for as separate items (major components) of property, plant and equipment.
Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds
from disposal with the carrying amount of property, plant and equipment, and are recognized in profit or loss.
Leased assets Leases in terms of which the Group substantially assumes all the risk and rewards of ownership are classified as
finance leases. Property, plant and equipment acquired by way of finance leases is capitalized at the lower of its fair
value or the present value of the minimum lease payments at the inception of the lease, less accumulated
depreciation and accumulated impairment losses. Lease payments are apportioned between the finance charges
and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the
liability. Finance charges are charged directly to the profit or loss.
Reclassification to investment property When the use of a property changes from owner-occupied to investment property, its carrying amount is
recognized and reclassified as investment property. Subsequent costs The cost of replacing a part of an item of property, plant and equipment, including major inspections, is
recognized in the carrying amount of the item if it is probable that the future economic benefits embodied
within the part will flow to the Group, and its cost can be measured reliably. The carrying amount of the
replaced part is derecognized. The costs of the day-to-day servicing of property, plant and equipment are
recognized in profit or loss as incurred. Depreciation Depreciation is calculated based on the depreciable amount, which is the cost of property, plant and
equipment, or other amount substituted for cost, less its residual value.
Depreciation is charged to profit or loss on a straight-line basis over the estimated useful lives of each
component of an item of property, plant and equipment. The estimated useful lives are as follows:
Annual Report 2019 SCG Packaging Public Company Limited76
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Land improvements 5 - 33 years
Buildings and structures 5 - 40 years
Machinery and equipment 3 - 30 years
Furniture, fixtures and office equipment 3 - 20 years
Transportation and equipment 3 - 10 years For three particular subsidiaries, Phoenix Pulp & Paper Public Company Limited, The Siam Forestry Co., Ltd.
and Thai Cane Paper Public Company Limited, depreciation of property, plant and equipment has been
computed by the following methods over the periods as follows:
- Phoenix Pulp & Paper Public Company Limited
Depreciation method
Land improvements 5 - 30 years Straight-line
Buildings and structures
- Acquired prior to 1 January 2002 30 years Sinking Fund
- Acquired from 1 January 2002 5 - 40 years Straight-line
Machinery and equipment 15 years Sinking Fund
Certain machinery and equipment 5 - 25 years Straight-line
Furniture, fixtures and office equipment 3, 5 years Straight-line
Transportation and equipment 5 years Straight-line
Bearer plant 5 years Straight-line
- The Siam Forestry Co., Ltd.
Depreciation method
Bearer plant Actual production in each month
772019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
- Thai Cane Paper Public Company Limited
Depreciation
method
Land improvements 5 - 20 years Straight-line
Buildings and structures 5 - 20, 40 years Straight-line
Production machinery
- Kanchanaburi Mill Estimated production capacity of 1.92 million tons
- Prachinburi Mill Estimated production capacity of 5.25 million tons
Machinery and equipment 5 - 25 years Straight-line
Furniture and fixtures 5 - 10 years Straight-line
Transportation and equipment 5, 10 years Straight-line
The effect of using the above different depreciation methods on the consolidated financial statements is
insignificant.
Depreciation for the finance lease assets is charged as expense for each accounting period. The depreciation
method for leased assets is consistent with that for depreciable assets that are owned.
No depreciation is provided on freehold land or assets under construction.
Depreciation methods, useful lives and residual values are reviewed at each reporting period and adjusted
if appropriate.
(l) Goodwill and other intangible assets
Goodwill
Goodwill that arises upon the acquisition of subsidiaries is included in intangible assets. The measurement of
goodwill at initial recognition is described in note 3 (a). Subsequent to initial recognition, goodwill is measured
at cost less accumulated impairment losses. In respect of equity-accounted investees, the carrying amount of
goodwill is included in the carrying amount of the investment, and an impairment loss on such an investment
is not allocated to any assets.
Annual Report 2019 SCG Packaging Public Company Limited78
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Research and development
Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical
knowledge and understanding, is recognized in profit or loss as incurred.
Development activities involve a plan or design for the production of new or substantially improved products
and processes. Development expenditure is capitalized only if development costs can be measured reliably,
the product or process is technically and commercially feasible, future economic benefits are probable, and
the Group intends to and has sufficient resources to complete development and to use or sell the asset. The
expenditure capitalized includes the cost of materials, direct labor, overhead costs that are directly attributable
to preparing the asset for its intended use, and capitalized borrowing costs of a qualifying asset. Other
development expenditure is recognized in profit or loss as incurred.
Capitalized development expenditure is measured at cost less accumulated amortization and accumulated
impairment losses.
Other intangible assets
Other intangible assets that are acquired by the Group, which have finite useful lives, are measured at cost
less accumulated amortization and accumulated impairment losses.
Subsequent expenditure
Subsequent expenditure is capitalized only when it increases the future economic benefits embodied
in the specific asset to which it relates. All other expenditure, including expenditure on internally generated
goodwill and brands, is recognized in profit or loss as incurred.
Amortization
Amortization is calculated based on the cost of the asset, or other amount substituted for cost, less its
residual value.
792019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Amortization is recognized in profit or loss on a straight-line basis and units of production over the estimated
useful lives of intangible assets, other than goodwill, from the date that they are available for use, since this
most closely reflects the expected pattern of consumption of the future economic benefits embodied in
the asset.
The estimated useful lives are as follows:
Depreciation method
Software licenses and others 3 - 10 years Straight-line
Technology licenses and knowhow 15 years Straight-line
Customer contracts and relationship 5 years Contractual agreement
No amortization is provided on assets under development.
Amortization methods, useful lives and residual values are reviewed at each reporting period and adjusted
if appropriate.
(m) Impairment
The carrying amounts of the Group’s assets are reviewed at the end of each reporting period to determine
whether there is any indication of impairment. If any such indication exists, the assets’ recoverable amounts
are estimated. For goodwill and intangible assets that have indefinite useful lives or are not yet available for
use, the recoverable amount is estimated each year at the same time.
An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its
recoverable amount. The impairment loss is recognized in profit or loss unless it reverses a previous
revaluation credited to equity, in which case it is charged to equity.
Calculation of recoverable amount
The recoverable amount of a non-financial asset is the greater of the asset’s value in use and fair value less
costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value
Annual Report 2019 SCG Packaging Public Company Limited80
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
using a pre-tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset.
Reversals of impairment
An impairment loss in respect of financial asset is reversed if the subsequent increase in recoverable amount
can be related objectively to an event occurring after the impairment loss was recognized in profit or loss.
An impairment loss in respect of goodwill is not reversed. Impairment losses recognized in prior periods in
respect of other non-financial assets are assessed at each reporting period for any indications that the loss
has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates
used to determine the recoverable amount. An impairment loss is reversed only to the extent that the
asset’s carrying amount does not exceed the carrying amount that would have been determined, net of
accumulated depreciation or accumulated amortization, if no impairment loss had been recognized.
(n) Trade and other payables
Trade and other payables are stated at cost.
(o) Contract liabilities
A contract liability is the obligation to transfer goods or services to the customer. A contract liability is
recognized when the Group receives or has an unconditional right to receive non-refundable consideration
from the customer before the Group recognizes the related revenue.
(p) Employee benefits
Defined contribution plans
Obligations for contributions to defined contribution plans are expensed as the related service is provided.
812019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Defined benefit plans
The Group’s net obligation in respect of defined benefit plans is calculated separately for each plan by
estimating the amount of future benefit that employees have earned in the current and prior periods,
discounting that amount.
The calculation of defined benefit obligations is performed by a qualified actuary using the projected unit
credit method which is based on actuarial valuation method.
Remeasurements of the net defined benefit liability, actuarial gain or loss are recognized in other
comprehensive income. The Group determines the interest expense on the net defined benefit liability for
the period by applying the discount rate used to measure the defined benefit obligation at the beginning of
the annual period, taking into account any changes in the net defined benefit liability during the period
as a result of contributions and benefit payments. Net interest expense and other expenses related to
defined benefit plans are recognized in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that
relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The
Group recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.
Other long-term employee benefits
The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that
employees have earned in return for their service in the current and prior periods. That benefit is discounted
to determine its present value. Remeasurements are recognized in profit or loss in the period in which they
arise.
Termination benefits
Termination benefits are expensed at the earlier of when the Group can no longer withdraw the offer of
those benefits and when the Group recognizes costs for a restructuring. If benefits are not expected to be
settled wholly within 12 months of the end of the reporting period, then they are discounted.
Annual Report 2019 SCG Packaging Public Company Limited82
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Short-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognized for
the amount expected to be paid if the Group has a present legal or constructive obligation to pay this
amount as a result of past service provided by the employee and the obligation can be estimated reliably.
(q) Provisions
A provision is recognized if, as a result of a past event, the Group has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation. Provisions are determined by discounting the expected future cash flows
at a pre-tax rate that reflects current market assessments of the time value of money and
the risks specific to the liability. The unwinding of the discount is recognized as finance costs.
(r) Revenue
Revenue is recognized when a customer obtains control of the goods or services in an amount that reflects the
consideration to which the Group expects to be entitled, excluding those amounts collected on behalf of third
parties, value added tax or other sales taxes and is after deduction of any trade discounts and volume rebates.
Sale of goods and rendering of services
Revenue from sales of goods is recognized when a customer obtains control of the goods, generally on
delivery of the goods to the customers. For contracts that permit the customers to return the goods, revenue
is recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative
revenue recognized will not occur. Therefore, the amount of revenue recognized is adjusted for estimated
returns, which are estimated based on the historical data.
Revenue for rendering of services is recognized as services are provided on the basis of stage of completion
of the transaction.
For bundled packages, the Group accounts for individual products and services separately if they are distinct
(i.e. if a product or service is separately identifiable from other items and a customer can benefit from it) or
the multiple services are rendered in different reporting periods. The consideration received is allocated
832019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
based on their relative stand-alone selling prices which are determined based on the price list at which
the Group sells the products and services in separate transactions.
Granting options to purchase additional goods or services
The consideration received are allocated based on the relative stand-alone selling price of the products
and the loyalty points. The amount allocated to the loyalty points is recognized as contract liabilities and
revenue is recognized when loyalty points are redeemed, the likelihood of the customer redeeming the
loyalty points becomes remote or option expire. The stand-alone selling prices of the points is estimated
based on discount provided to customers and the likelihood that the customers will redeem the points,
and the estimate shall be reviewed at the end of the reporting period.
Interest and dividend income
Interest income is recognized in profit or loss using the effective interest method. Dividend income is recognized
in profit or loss on the date the Group’s right to receive payments is established.
Royalty fee income
Royalty fee income is recognized throughout the royalty period.
(s) Expenses
Operating leases
Payments made under operating leases are recognized in profit or loss on a straight line basis over
the term of the lease. Lease incentives received are recognized in profit or loss as an integral part of
the total lease expense, over the term of lease.
Contingent lease payments are accounted for by revising the minimum lease payments over
the remaining term of the lease when the lease adjustment is confirmed.
Annual Report 2019 SCG Packaging Public Company Limited84
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Determining whether an arrangement contains a lease
At inception of an arrangement, the Group determines whether such an arrangement is or contains a lease.
A specific asset is the subject of a lease if fulfilment of the arrangement is dependent on the use of that
specified asset. An arrangement conveys the right to use the asset if the arrangement conveys to the Group
the right to control the use of the underlying asset.
At inception or upon reassessment of the arrangement, the Group separates payments and other
consideration required by such an arrangement into those for the lease and those for other elements on the
basis of their relative fair values. If the Group concludes for a finance lease that it is impracticable to separate
the payments reliably, an asset and a liability are recognized at an amount equal to the fair value of the
underlying asset. Subsequently, the liability is reduced as payments are made and an imputed finance charge
on the liability is recognized using the Group’s incremental borrowing rate.
Finance costs
Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions and
contingent consideration, and dividends on preference shares classified as liabilities.
Borrowing costs that are not directly attributable to the acquisition, construction or production of
a qualifying asset are recognized in profit or loss using the effective interest method.
Early retirement expense
The Group offered certain qualifiable employees the option to take early retirement from the Group. Eligible
employees who accept the offer are paid a lump sum amount which is calculated based on
a formula using their final month’s pay, number of years of service or the number of remaining months before
normal retirement as variables. The Group records expenses on early retirement upon mutual acceptance.
(t) Income tax
Income tax expense for the year comprises current and deferred tax. Current and deferred tax are recognized in profit
or loss except to the extent that they relate to items recognized directly in equity or in other comprehensive income.
852019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Current tax
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax
rates enacted or substantially enacted at the end of the reporting period, and any adjustment to tax payable
in respect of previous years.
Deferred tax
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not
recognized for the following temporary differences: the initial recognition of goodwill; the initial recognition
of assets or liabilities in a transaction that is not a business combination and that affects neither accounting
nor taxable profit or loss; and differences relating to investments in subsidiaries to the extent that it is
probable that they will not reverse in the foreseeable future. Deferred tax is measured at the tax rates
that are expected to be applied to the temporary differences when they reverse, using tax rates enacted or
substantively enacted at the end of the reporting period.
The measurement of deferred tax reflects the tax consequences that would follow the manner in which the
Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and
liabilities.
In determining the amount of current and deferred tax, the Group takes into account the impact of uncertain
tax positions and whether additional taxes and interest may be due. The Group believes that its accruals for
tax liabilities are adequate for all open tax years based on its assessment of many factors, including
interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and
may involve a series of judgments about future events. New information may become available that causes
the Group to change its judgment regarding the adequacy of existing tax liabilities; such changes to tax
liabilities will impact tax expense in the period that such a determination is made.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity,
or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their
tax assets and liabilities will be realized simultaneously.
Annual Report 2019 SCG Packaging Public Company Limited86
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available
against which the temporary differences can be utilized. Future taxable profits are determined based on
the reversal of relevant taxable temporary differences. If the amount of taxable temporary differences is
insufficient to recognize a deferred tax asset in full, then future taxable profits, adjusted for reversals of
existing temporary differences, are considered, based on the business plans for individual subsidiaries in
the Group. Deferred tax assets are reviewed at the end of each reporting period and reduced to the extent
that it is no longer probable that the related tax benefit will be realized.
(u) Derivative financial instruments
Financial assets and financial liabilities carried on the statement of financial position include cash and cash
equivalents, trade and other receivables and payables, long-term receivables, loans, investments, and borrowings.
The Group operates internationally and is exposed to risks from changes in foreign exchange rates. The Group
uses derivative financial instruments to mitigate those risks. All gains and losses on hedge transactions are
recognized in profit or loss in the same period as the exchange differences on the items covered by the hedge.
(v) Business segment reporting
Segment results that are reported to the Group’s Chief Operating Decision Maker include items directly
attributable to a segment as well as those that can be allocated on a reasonable basis.
872019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
4 Acquisitions of business and changes in ownership interests of subsidiaries
Year 2019
(a) Acquisitions
During the year 2019, the Group acquired significant businesses as follows:
(1) PT Fajar Surya Wisesa Tbk. and its subsidiary, Indonesia
On 28 June 2019, a subsidiary company in Packaging Business acquired 55.004% of ordinary shares of
PT Fajar Surya Wisesa Tbk. (“Fajar”), which is a leading Indonesian packaging paper company and which
is also listed on the Indonesia Stock Exchange, for a total consideration of Rupiah 9.6 trillion equivalent
to approximately Baht 20,817 million.
Obtaining control in Fajar will allow the Group to enhance its ASEAN growth platform, especially in
Indonesia that provides tremendous future growth opportunity for Packaging business.
(2) Visy Packaging (Thailand) Limited, Thailand
On 30 August 2019, a subsidiary company in Packaging Business acquired 80% of ordinary shares of Visy
Packaging (Thailand) Limited (“Visy Thailand”). Visy Thailand is Asia’s leading producer of
thermoformed barrier food packaging which is also recyclable, serving established global brand
owners that require high quality packaging products. Also, the acquired company possesses global
scale with a highly-automated production facility, including proprietary technology to produce
packaging that can preserve food and fruit, as well as an integrated process to minimize waste, for a
total consideration of Baht 4,305 million.
Obtaining control in Visy Thailand further reinforces the Group’s continued growth and capabilities
as a total packaging solution provider, especially in the Asian food and fruit segments where the
world’s major plantations are based.
With respect to the above acquisitions, the Group has engaged independent appraisers to determine the fair
values of net assets and liabilities acquired. As at 31 December 2019, the determination of the fair values
has been completed, and the assets acquired and liabilities assumed were recognized accordingly.
Annual Report 2019 SCG Packaging Public Company Limited88
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
The Group has continuously determined its review of fair values of the business acquired within one year
from the acquisition date, taking into accounts additional information, facts as well as circumstances that
existed at the acquisition date. Consequently, the adjustments on accounting transaction of such acquisition
will be made.
Assets acquired and liabilities assumed at the acquisition date were as follows:
Note Fair Value
Fajar
Visy
Thailand
Total
(in million Baht)
Cash and cash equivalents 295 23 318
Trade and other current receivables 3,932 263 4,195
Inventories 2,594 235 2,829
Investment property 11 - 44 44
Property, plant and equipment 12 22,550 1,406 23,956
Other intangible assets 14 3 528 531
Deferred tax assets 15 38 - 38
Non-current assets 745 19 764
Interest-bearing borrowings 16 (9,421) (75) (9,496)
Trade and other current payables (3,167) (154) (3,321)
Deferred tax liabilities 15 (2,523) (163) (2,686)
Non-current liabilities (586) (10) (596)
Net identifiable assets and liabilities 14,460 2,116 16,576
Less non-controlling interests (6,506) (423) (6,929)
Recognized value of net assets acquired 7,954 1,693 9,647
Goodwill 13 12,863 2,612 15,475
Total consideration transferred 20,817 4,305 25,122
Cash acquired (318)
Net cash outflows 24,804
Less cash in escrow account (922)
Net cash outflows in 2019 23,882
892019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Cash in escrow account amounting to Baht 922 million are presented net of accrued investment and will be
released when certain conditions are met within March 2020.
The assets, liabilities and operating results since acquisition date of those subsidiaries have been included in
the Group’s consolidated financial statements for the year ended 31 December 2019. The subsidiaries
contributed revenue from sales of Baht 9,044 million and profit for the period of Baht 637 million to
the Group’s operating results. If the acquisition had occurred on 1 January 2019, management estimates
that consolidated revenue from sales would have been Baht 99,831 million and consolidated profit for the
period would have been Baht 6,275 million.
The Group incurred acquisition costs totaling Baht 43 million which have been included in administrative
expenses in the consolidated income statement.
(b) Change in ownership interests in subsidiaries
• In the second quarter of 2019, the Group has restructured its stake in rigid packaging business by having
Toppan Printing Company Limited, a Japanese packaging company, join in SCGP-T Plastics Company
Limited (“SCGP-T”), a holding company for the rigid packaging business. With this portfolio
adjustment, a transaction valued of Baht 194 million, the Group’s investment in SCGP-T has
decreased from 100% to 51%. The Group recognised an increase in non-controlling interests of
Baht 200 million, SCGP-T has remained a consolidated subsidiary of the Group.
• During the year 2019, the Group increased its interest in PT Indocorr Packaging Cikarang
(“Indocorr”) from 80% to 100% and its interest in PT Fajar Surya Wisesa Tbk. (“Fajar”) from
55.004% to 55.235%.
The following summarizes the effect of the change in the Group’s ownership interests:
(in million Baht)
Carrying amount of non-controlling interests acquired 113
Less Consideration paid to non-controlling interests (192)
Decrease in equity attributable to owners of the Group
from additional investments in subsidiaries
(79)
Annual Report 2019 SCG Packaging Public Company Limited90
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Year 2018
(a) Acquisitions
During the year 2018, the Group acquired the significant business as follows:
Interpress Printers Sendirian Berhad, Malaysia
On 19 January 2018, a subsidiary company in Packaging business acquired 68% of shares in Interpress Printers
Sendirian Berhad (“IPSB”), which is a sector-leading food-grade paper packaging company, highly accredited
and vetted by the global leading fast food restaurant chain, located in Malaysia, for a total consideration of
Ringgit 63 million or equivalent to approximately Baht 511 million.
Obtaining control in IPSB emphasizes the Group’s commitment in becoming a total packaging solutions
provider in ASEAN countries and will further enhance the overall portfolio while exhibiting its potential to
serve the burgeoning region’s fast food consumption, evolving lifestyle and preferences of consumers.
According to the above acquisitions, the Group has engaged an independent appraiser to determine the fair
values of net assets and liabilities acquired. As at 31 December 2018, the determination of the fair values
has been completed, and the carrying amount of the assets acquired and liabilities assumed were recorded
accordingly.
The Group has continuously determined its review of fair values of the business acquired within one year
from the acquisition date, taking into accounts additional information, facts as well as circumstances that
existed at the acquisition date. Consequently, the adjustments on accounting transaction of such acquisition will
be made.
912019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Assets acquired and liabilities assumed at the acquisition date were as follows:
Fair Value
IPSB
(in million Baht)
Cash and cash equivalents 2
Trade and other current receivables 161
Inventories 57
Property, plant and equipment 347
Interest-bearing debts (244)
Trade and other current payables (28)
Other non-current liabilities (13)
Net identifiable assets and liabilities 282
Less non-controlling interests (89)
Recognized value of net assets acquired 193
Goodwill 318
Total consideration transferred 511
Cash acquired (2)
Net cash outflows 509
Less accrued investments (88)
Net cash outflows in 2018 421
The Group has agreed to pay a total consideration of Baht 88 million to the former shareholder. The remaining
balance of Baht 39 million will be released when certain conditions are achieved within May 2021.
The assets, liabilities and operating results since acquisition date of those subsidiaries have been included
in the Group’s consolidated financial statements for the year ended 31 December 2018. The subsidiaries
contributed revenue from sales of Baht 502 million and loss for the period of Baht 4 million to the Group’s
operating results. If the acquisition had occurred on 1 January 2018, management estimates that
consolidated revenue from sales would have been Baht 87,304 million and consolidated profit for the
period would have been Baht 6,069 million.
The Group incurred acquisition costs totalling Baht 9 million which have been included in administrative
expenses in the consolidated income statement.
Annual Report 2019 SCG Packaging Public Company Limited92
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
(b) Change in ownership interests in a subsidiaries
During the year 2018, the Group had purchased additional shares in Dyna Packs Co., Ltd. and Orient Containers
Co., Ltd. increasing its stake from 75% to 100%, in PT Primacorr Mandiri increasing its stake from 90% to 97%,
in PT Indoris Printingdo increasing its stake from 90% to 99.95% and in Thai Cane Paper Public Company
Limited increasing its stake from 94.54% to 98.20%.
The following summarizes the effect of the change in the Group’s ownership interests:
(in million Baht)
Carrying amount of non-controlling interests acquired 401
Less consideration paid to non-controlling interests (639)
Decrease in equity attributable to owners of the Group
from additional investments in subsidiaries
(238)
5 Related parties
Parties are considered to be related to the Group if the Group has the ability, directly or indirectly, to control
the party or exercise significant influence over the party in making financial and operating decisions, or vice versa.
Relationships with related parties were as follows:
Name of entities
Country of
incorporation
/nationality
Nature of relationships
The Siam Cement Public Company Limited Thailand Ultimate parent company
SCG International Corporation Co., Ltd.
(Formerly SCG Trading Corporation Co., Ltd.)
Thailand A subsidiary of The Siam Cement Public Company Limited
SCG International Vietnam Co., Ltd.
(Formerly SCG Trading Vietnam Co., Ltd.)
Vietnam A subsidiary of The Siam Cement Public Company Limited
PT SCG International Indonesia
(Formerly PT SCG Trading Indonesia)
Indonesia A subsidiary of The Siam Cement Public Company Limited
The Siam Fibre-Cement Group Co., Ltd. Thailand A subsidiary of The Siam Cement Public Company Limited
SCG Ceramics Public Company Limited Thailand A subsidiary of The Siam Cement Public Company Limited
932019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Name of entities
Country of
incorporation
/nationality
Nature of relationships
Nawa Plastics Industries Co., Ltd. Thailand A subsidiary of The Siam Cement Public Company Limited
Sosuco Ceramic Co., Ltd. Thailand A subsidiary of The Siam Cement Public Company Limited
Siam Sanitary Ware Industry Co., Ltd. Thailand A subsidiary of The Siam Cement Public Company Limited
Prime Group Joint Stock Company Vietnam A subsidiary of The Siam Cement Public Company Limited
SCG Logistics Management Co., Ltd. Thailand A subsidiary of The Siam Cement Public Company Limited
The Siam Fibre-Cement Co., Ltd. Thailand A subsidiary of The Siam Cement Public Company Limited
SCG Cement-Building Materials Co., Ltd. Thailand A subsidiary of The Siam Cement Public Company Limited
SCG Marketing Philippines, Inc. Philippines A subsidiary of The Siam Cement Public Company Limited
SCG Chemicals Co., Ltd. Thailand A subsidiary of The Siam Cement Public Company Limited
The Concrete Products and Aggregate Co., Ltd. Thailand A subsidiary of The Siam Cement Public Company Limited
SCG Cement Co., Ltd. Thailand A subsidiary of The Siam Cement Public Company Limited
PT SCG Indonesia Indonesia A subsidiary of The Siam Cement Public Company Limited
SCG International (Philippines) Corporation Co., Ltd.
(Formerly SCG Trading Philippines Inc.)
Philippines A subsidiary of The Siam Cement Public Company Limited
SCI Eco Services Co., Ltd. Thailand A subsidiary of The Siam Cement Public Company Limited
SCG Performance Chemicals Co., Ltd. Thailand A subsidiary of The Siam Cement Public Company Limited
SCG International USA Inc.
(Formerly SCG Trading USA Inc.)
USA A subsidiary of The Siam Cement Public Company Limited
Rayong Olefins Co., Ltd. Thailand A subsidiary of The Siam Cement Public Company Limited
SCG Vietnam Co., Ltd. Vietnam A subsidiary of The Siam Cement Public Company Limited
Nawa Intertech Co., Ltd. Thailand A subsidiary of The Siam Cement Public Company Limited
Siam Toppan Packaging Co., Ltd. Thailand An associate of SCG Packaging Public Company Limited
Siam Nippon Industrial Paper Co., Ltd. Thailand An associate of SCG Packaging Public Company Limited
Saha Green Forest Co., Ltd. Thailand An associate of SCG Packaging Public Company Limited
P&S Holding Corporation Philippines An associate of SCG Packaging Public Company Limited
The Siam Gypsum Industry (Saraburi) Company Limited Thailand An associate of The Siam Cement Public Company Limited
The Siam Gypsum Industry (Songkhla) Company Limited Thailand An associate of The Siam Cement Public Company Limited
Thai MFC Co., Ltd. Thailand An associate of The Siam Cement Public Company Limited
Siam Polyethylene Co., Ltd. Thailand An associate of The Siam Cement Public Company Limited
Annual Report 2019 SCG Packaging Public Company Limited94
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Name of entities
Country of
incorporation
/nationality
Nature of relationships
Siam Synthetic Latex Co., Ltd. Thailand An associate of The Siam Cement Public Company Limited
IT One Co., Ltd. Thailand An associate of The Siam Cement Public Company Limited
Nippon Paper Industries Co., Ltd. Japan Common directors with Phoenix Pulp & Paper Public
Company Limited
Rengo Co., Ltd. Japan Common directors with Thai Containers Group Co., Ltd.
Asia Cement Public Company Limited Thailand Common directors with The Siam Cement Public Company
Limited
On 31 May 2018, SCG Packaging Public Company Limited (a subsidiary of The Siam Cement Public Company
Limited) sold 19,567,240 ordinary shares of Thai British Security Printing Public Company Limited (17.79% of
total issued and paid-up shares capital of the Company) to Miss Suthida Mongkolsuthi.
952019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
The pricing policies for particular types of transactions are explained further below:
Transactions Pricing policies
Revenue from sales Market price
Purchases Market price
Intellectual properties fees Percentage of revenue from sales
Expenses Market price and contract rate
Dividends income Upon declaration
Interest expense Contract rate
Significant transactions for the years ended 31 December with related parties were as follows:
2019 2018
(in thousand Baht)
Parent
Revenue from sales 16,538 15,505
Intellectual properties fees 271,616 299,044
Interest expense 1,255,622 777,839
Expenses 882,335 922,360
Associates
Revenue from sales 669,084 979,015
Dividends income 11,832 15,872
Purchases 294,741 356,275
Others
Revenue from sales 3,508,031 3,499,653
Purchases 7,264,188 7,368,578
Expenses 2,893,051 2,804,819
Dividend income - 10,762
Annual Report 2019 SCG Packaging Public Company Limited96
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Balances as at 31 December with related parties were as follows:
Trade receivables
2019 2018
(in thousand Baht)
Parent
The Siam Cement Public Company Limited 1,712 1,849
Associates
Siam Toppan Packaging Co., Ltd. 30,572 39,313
Siam Nippon Industrial Paper Co., Ltd. 15,042 40,323
Saha Green Forest Co., Ltd. 867 1,801
Others
SCG International Corporation Co., Ltd. 82,065 85,077
SCG International Vietnam Co., Ltd. 73,252 22,975
The Siam Gypsum Industry (Saraburi) Co., Ltd. 41,786 97,469
PT SCG International Indonesia 31,126 49,795
Siam Fibre Cement Group Co., Ltd. 17,567 1,520
The Siam Gypsum Industry (Songkhla) Co., Ltd. 10,681 15,753
Asia Cement Public Company Limited 10,434 23,186
SCG Ceramics Public Company Limited 8,973 6,222
Nawaplastic Industries Co., Ltd. 8,550 5,192
Sosuco Ceramics Co., Ltd. 5,354 5,104
Thai MFC Co., Ltd. 4,967 13,269
Siam Sanitary Ware Industry Co., Ltd. 4,374 5,876
Siam Polyethylene Co., Ltd. 4,204 4,173
Prime Group Joint Stock Company 3,633 5,268
SCG Logistics Management Co., Ltd. 509 10,205
The Siam Fibre-Cement Co., Ltd 21 24,389
Others 23,448 25,894
Total 379,137 484,653
972019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Other current receivables
2019 2018
(in thousand Baht)
Parent
The Siam Cement Public Company Limited 59,658 51,618
Associates
Siam Nippon Industrial Paper Co., Ltd. 40,662 28,672
P&S Holdings Corporation 11,305 1,608
Saha Green Forest Co., Ltd. 419 4
Siam Toppan Packaging Co., Ltd. 129 128
Others
SCG Cement-Building Material Co., Ltd. 2,341 4,047
SCG Marketing Philippines, Inc. 2,275 768
SCG Chemicals Co., Ltd. 1,638 1,339
SCG International Corporation Co., Ltd. 1,469 1,205
Nawaplastic Industries Co., Ltd. 1,188 521
The Concrete Products and Aggregate Co., Ltd. 682 1,565
SCG Cement Co., Ltd. 401 2,433
PT SCG International Indonesia 257 1,373
Nippon Paper Industries Co., Ltd. - 4,230
Others 6,803 9,112
Total 129,227 108,623
Short-term loans
2019 2018
(in thousand Baht)
Others
PT SCG Indonesia 4,601 3,502
SCG Marketing Philippines, Inc. - 123,650
Total 4,601 127,152
Annual Report 2019 SCG Packaging Public Company Limited98
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Long-term loan
2019 2018
(in thousand Baht)
Other
Mariwasa-Siam Ceramic, Inc. - 92,738
Movements during the years on loans to related parties were as follows:
2019 2018
(in thousand Baht)
Short-term
At 1 January 127,152 811
Increase 17,539 128,867
Decrease (140,090) (2,526)
At 31 December 4,601 127,152
Long-term
At 1 January 92,738 98,333
Decrease (92,738) (5,595)
At 31 December - 92,738 Advance payment from software licence fee, long-term receivable and deposit shown under other non-current receivables
2019 2018
(in thousand Baht)
Parent
The Siam Cement Public Company Limited 256,585 291,041
Associate
P&S Holdings Corporation 111,428 115,860
Total 368,013 406,901
992019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Trade payables
2019 2018
(in thousand Baht)
Associates
Siam Nippon Industrial Paper Co., Ltd. 17,382 17,111
Siam Toppan Packaging Co., Ltd. 6,256 6,587
Others
SCG International Corporation Co., Ltd. 386,822 596,313
SCG Logistics Management Co., Ltd. 237,412 230,901
SCG International Vietnam Co., Ltd. 180,987 143,002
SCG International (Philippines) Corporation Co., Ltd. 49,499 53,049
SCI Eco Services Co., Ltd. 25,150 32,334
Rengo Co., Ltd. 22,575 74,560
Siam Synthetic Latex Co., Ltd. 18,626 25,222
SCG Performance Chemicals Co., Ltd. 18,022 24,735
PT SCG International Indonesia 12,543 69
SCG International USA Inc. 9,120 74,178
IT One Co., Ltd. 8,211 8,802
Rayong Olefins Co., Ltd. 5,829 22,467
Others 22,433 26,994
Total 1,020,867 1,336,324
Annual Report 2019 SCG Packaging Public Company Limited100
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Other current payables
2019 2018
(in thousand Baht)
Parent
The Siam Cement Public Company Limited 127,888 205,254
Associates
Siam Toppan Packaging Co., Ltd. 4,340 1,805
P&S Holdings Corporation 1,064 1,058
Siam Nippon Industrial Paper Co., Ltd. 67 3,299
Others
Nippon Paper Industries Co., Ltd. 38,998 40,499
SCG Ceramics Public Company Limited 15,020 -
Siam Sanitary Ware Industry Co., Ltd. 7,590 1,380
SCG Vietnam Co., Ltd. 3,312 -
Nawa Intertech Co., Ltd. 2,517 120
SCG International Corporation Co., Ltd. 2,149 148
SCI Eco Services Co., Ltd. 2,140 88
Others 6,878 3,473
Total 211,963 257,124
Short-term borrowings
2019 2018
(in thousand Baht)
Parent
The Siam Cement Public Company Limited 33,756,240 23,309,752
Others
PT SCG Indonesia 70,956 105,948
Total 33,827,196 23,415,700
1012019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Movements during the years on short-term borrowings from related parties were as follows:
2019 2018
(in thousand Baht)
At 1 January 23,415,700 15,496,563
Increase 36,476,305 27,174,575
Decrease (26,064,809) (19,255,438)
At 31 December 33,827,196 23,415,700
The Board of Directors and key management compensation
2019 2018
(in thousand Baht)
For the years ended 31 December
Short-term employee benefits 94,414 121,160
Post-employment benefits 18,354 10,584
Total 112,768 131,744
The Board of Directors and key management compensation comprises the remuneration paid to the directors
of SCG Packaging Public Company Limited under the articles of the Company and the remuneration paid to
the management as staff expenses in terms of salary, bonus, variable pay, others and contribution to defined
contribution plans.
6 Cash and cash equivalents
2019 2018
(in thousand Baht)
Cash on hand 61,574 133,004
Cash at banks - current accounts 1,660,516 529,971
Cash at banks - saving accounts 1,128,059 745,684
Highly liquid short-term investment 1,543,696 686,690
Total 4,393,845 2,095,349
Annual Report 2019 SCG Packaging Public Company Limited102
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
7 Trade and other current receivables
Note 2019 2018
(in thousand Baht)
Trade receivables
Related parties 5 379,137 484,653
Other companies 13,406,949 12,203,668
Less allowance for doubtful accounts (156,835) (152,948)
Net 13,250,114 12,050,720
13,629,251 12,535,373
Other current receivables
Related parties 5 129,227 108,623
Other companies 1,439,542 1,060,107
1,568,769 1,168,730
Total 15,198,020 13,704,103
For the year ended 31 December
Bad and doubtful debts expenses 32,264 42,556
Bad debts recovery (3,772) (3,269)
1032019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
2019 2018
(in thousand Baht)
Trade receivables
Related parties
Within credit terms 363,840 460,006
Overdue:
Less than 3 months 15,287 24,647
3 - 6 months 10 -
Total 379,137 484,653
Other companies
Within credit terms 11,774,041 11,186,863
Overdue:
Less than 3 months 1,444,297 823,613
3 - 6 months 37,913 38,279
Over 6 - 12 months 6,275 6,229
Over 12 months 144,423 148,684
13,406,949 12,203,668
Less allowance for doubtful accounts (156,835) (152,948)
Net 13,250,114 12,050,720
Total 13,629,251 12,535,373
The normal credit term granted by the Group is 30 - 90 days.
Annual Report 2019 SCG Packaging Public Company Limited104
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
8 Inventories
2019 2018
(in thousand Baht)
Finished goods 4,128,493 3,975,384
Goods in process 966,692 749,897
Raw materials 4,031,065 3,834,292
Spare parts, stores, supplies and others 3,605,673 2,940,161
Goods in transit 977,173 1,759,412
Total 13,709,096 13,259,146
Less allowance for decline in value (432,960) (364,890)
Net 13,276,136 12,894,256
Cost of inventories recognized as an expense in cost of sales: 71,543,307 69,089,513
Write-down to net realizable value 178,733 48,532
Reversal of write-down (71,872) (64,795)
Changes in inventories of finished goods and goods in process (369,904) 114,345
Raw materials and supplies used 35,238,582 30,161,119
9 Investments in associates
Movements for the years ended 31 December in investments in associates accounted for using
the equity method were as follows:
2019 2018
(in thousand Baht)
At 1 January 729,740 760,734
Share of net profit (loss) of investments - equity method 52,728 (14,603)
Share of other comprehensive income of investment - equity method 118 (519)
Dividend income (11,832) (15,872)
At 31 December 770,754 729,740
1052019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Not
es t
o th
e fin
anci
al s
tate
men
ts
SCG
Pac
kagi
ng P
ublic
Com
pany
Lim
ited
and
its S
ubsi
diar
ies
For
the
year
end
ed 3
1 Dec
embe
r 20
19 a
nd 2
018
Inve
stm
ents
in a
ssoc
iate
s as
at 3
1 De
cem
ber a
nd d
ivid
end
inco
me
from
thes
e in
vest
men
ts fo
r the
yea
rs th
en e
nded
at t
he s
ame
date
, wer
e as
follo
ws:
To
tal d
irect
/
in
dire
ct h
oldi
ng
Pa
id-u
p ca
pita
l
Cost
met
hod
Eq
uity
met
hod
Di
vide
nd in
com
e
20
19
20
18
20
19
20
18
20
19
20
18
20
19
20
18
20
19
20
18
(%
)
(in th
ousa
nd B
aht)
Asso
ciat
es
Siam
Top
pan
Pack
agin
g Co
., Lt
d.
49
49
500,
000
50
0,00
0
245,
000
24
5,00
0
430,
231
426,
446
9,45
7
11,1
22
Siam
Nipp
on In
dustr
ial P
aper
Co.
, Ltd
. 31
.31
31
.31
1,
100,
000
1,
100,
000
49
5,00
0
495,
000
26
8,30
7 23
9,40
2 -
-
Saha
Gre
en F
ores
t Co.
, Ltd
. 17
.40
17
.40
19
0,00
0
190,
000
47
,500
47,5
00
72
,216
63
,892
2,
375
4,75
0
P&S
Hold
ing
Corp
orat
ion
40
40
262,
588
26
2,58
8
105,
121
10
5,12
1
-
-
-
-
Tota
l
2,
052,
588
2,
052,
588
89
2,62
1
892,
621
77
0,75
4 72
9,74
0 11
,832
15
,872
Annual Report 2019 SCG Packaging Public Company Limited106
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Immaterial associates
The following is summarized financial information for the Group’s interest in immaterial associates based
on the amounts reported in the Group’s consolidated financial statements:
2019 2018
(in thousand Baht)
Carrying amount of interests in immaterial associates 770,754 729,740
Group’s share of:
- Profit (loss) for the year from continuing operations 52,728 (14,603)
- Other comprehensive income for the year 118 (519)
- Total comprehensive income for the year 52,846 (15,122)
10 Non-controlling interests
The following table summarizes the information relating to each of the Group’s subsidiaries that has
a material non-controlling interest, before any intra-group eliminations:
Phoenix Pulp & Thai PT Fajar
Paper Public Containers Surya Wisesa
Company Limited Group Co., Ltd. Tbk.*
(in thousand Baht)
Non-controlling interests at 31 December 2019
Non-controlling interest percentage 30.42% 30.00% 44.76%
Current assets 6,854,079 4,675,657 6,007,852
Non-current assets 19,153,282 11,289,766 14,703,278
Current liabilities (3,548,932) (5,661,055) (8,153,703)
Non-current liabilities (1,093,064) (630,549) (5,014,272)
Net assets 21,365,365 9,673,819 7,543,155
Carrying amount of non-controlling interest 6,499,344 2,902,146 3,376,316
1072019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Phoenix Pulp & Thai PT Fajar
Paper Public Containers Surya Wisesa
Company Limited Group Co., Ltd. Tbk.*
(in thousand Baht)
For the year ended 31 December 2019
Revenue 6,992,032 16,864,353 8,570,868
Profit (loss) for the year (249,762) 548,191 553,552
Other comprehensive income for the year (14,197) (47,807) (12,589)
Total comprehensive income for the year (263,959) 500,384 540,963
For the year ended 31 December 2019
Profit (loss) for the year:
- Attributable to owners of the parent (173,784) 383,734 305,324
- Attributable to non-controlling interest (75,978) 164,457 248,228
Other comprehensive income for the year:
- Attributable to owners of the parent (9,878) (33,465) (6,936)
- Attributable to non-controlling interest (4,319) (14,342) (5,653)
(263,959) 500,384 540,963
Cash flows from operating activities 445,662 1,494,862 (2,955,508)
Cash flows from investing activities 439,060 (1,213,413) (903,683)
Cash flows from financing activities (795,387) (292,976) 3,786,729
Net increase (decrease) in cash
and cash equivalents
89,335
(11,527)
(72,462)
Dividends to non-controlling interest 66,630 41,520 -
* Income statement for the six-month period during June - December 2019.
Annual Report 2019 SCG Packaging Public Company Limited108
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Phoenix Pulp &
Paper Public Thai Containers
Company Limited Group Co., Ltd.
(in thousand Baht)
Non-controlling interests at 31 December 2018
Non-controlling interest percentage 30.42% 30.00%
Current assets 7,324,709 4,565,757
Non-current assets 19,600,435 10,754,705
Current liabilities (4,017,396) (5,603,232)
Non-current liabilities (1,059,278) (405,395)
Net assets 21,848,470 9,311,835
Carrying amount of non-controlling interest 6,646,305 2,793,551
For the year ended 31 December 2018
Revenue 8,031,725 16,374,743
Profit for the year 614,454 918,575
Other comprehensive income for the year (47,858) (58,634)
Total comprehensive income for the year 566,596 859,941
For the year ended 31 December 2018
Profit for the year:
- Attributable to owners of the parent 427,537 643,003
- Attributable to non-controlling interest 186,917 275,572
Other comprehensive income for the year:
- Attributable to owners of the parent (33,300) (41,044)
- Attributable to non-controlling interest (14,558) (17,590)
566,596 859,941
Cash flows from operating activities 1,071,094 898,191
Cash flows from investing activities 191,364 (1,020,446)
Cash flows from financing activities (1,191,954) 126,355
Net increase in cash and cash equivalents 70,504 4,100
Dividends to non-controlling interest 55,392 124,560
1092019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
11 Investment property
Note
Land and land
improvements
(in thousand Baht)
Cost
At 1 January 2018 129,670
Acquisitions through business combinations 4 64,411
Transfer from property, plant and equipment 12 32,352
Transfer to other current assets (12,753)
At 31 December 2018 213,680
Acquisitions through business combinations 43,681
Transfer to property, plant and equipment 12 (38,305)
At 31 December 2019 219,056
Accumulated depreciation
At 1 January 2018 23,389
Depreciation charge for the year 4,716
At 31 December 2018 28,105
Depreciation charge for the year 3,551
At 31 December 2019 31,656
Carrying amount
As at 31 December 2018 185,575
As at 31 December 2019 187,400
Investment property was revalued as at 31 December 2019 at open market values on an existing use basis.
The fair value was Baht 506 million (2018: Baht 480 million).
The fair value measurement for investment property has been categorized as a Level 3 fair value based on
the inputs to the valuation technique used, which are discounted cash flows and market approach.
Annual Report 2019 SCG Packaging Public Company Limited110
Not
es t
o th
e fin
anci
al s
tate
men
ts
SCG
Pac
kagi
ng P
ublic
Com
pany
Lim
ited
and
its S
ubsi
diar
ies
For
the
year
end
ed 3
1 Dec
embe
r 20
19 a
nd 2
018
12
Prop
erty
, pla
nt a
nd e
quip
men
t
Fu
rnitu
re,
La
nd a
nd
M
achi
nery
fixtu
res
and
Tran
spor
tation
la
nd
Bu
ildin
gs a
nd
an
d
offic
e
and
Co
nstru
ction
impr
ovem
ents
st
ruct
ures
equi
pmen
t
equi
pmen
t
equi
pmen
t
in pr
ogres
s
Bear
er p
lant
Tota
l
(in th
ousa
nd B
aht)
Cost
At 1
Janu
ary
2018
4,
129,
832
17,1
27,8
20
10
9,18
7,58
2 1,
770,
322
44
5,93
0 6,
206,
727
11,2
13
138,
879,
426
Acqu
isitio
n th
roug
h bu
sines
s
co
mbi
natio
ns
-
16,
311
50
1,57
3 12
,588
2,50
8 -
-
532,
980
Addi
tions
16
4,27
9 2
46,0
60
1,9
69,3
91
65,
749
4
17
4,2
34,1
94
7,6
65
6,6
87,7
55
Disp
osal
s/w
ritte
n of
f (2
,044
) (1
5,86
3)
(1,6
62,9
26)
(105
,396
) (2
9,23
3)
(3,0
56)
- (1
,818
,518
) Tr
ansf
er to
inve
stm
ent p
rope
rty
(32,
352)
-
-
-
- -
-
(32,
352)
Tr
ansf
er to
oth
er c
urre
nt a
sset
s
-
(224
,840
)
(2,
866)
(3
,904
)
- -
-
(231
,610
) Tr
ansf
ers
in (o
ut)
89,1
60
624
,173
4,6
63,6
73
6
1,57
8
11,
983
(5,4
81,9
51)
4,5
09
(26,
875)
Cu
rrenc
y tra
nsla
tion
diffe
renc
es
(35,
315)
(5
8,46
8)
(3
60,4
40)
(6
,351
) (1
,211
)
(546
)
- (4
62,3
31)
At 3
1 De
cem
ber 2
018
4,31
3,56
0 17
,715
,193
114,
295,
987
1,79
4,58
6
430,
394
4,95
5,36
8 23
,387
14
3,52
8,47
5 Ac
quisi
tion
thro
ugh
busin
ess
co
mbi
natio
ns
3
,520
,309
1,
773,
589
24
,566
,269
1
58,8
72
18
1,01
7
1,4
94,6
95
- 31
,694
,751
Ad
ditio
ns
31,
234
269,
797
2,06
2,39
3 70
,626
11
,435
4,
745,
672
281
7,19
1,43
8 Di
spos
als/
writ
ten
off
(1,8
21)
(23,
238)
(8
47,0
70)
(20,
370)
(3
3,21
9)
(4,9
22)
- (9
30,6
40)
Tran
sfer
from
inve
stm
ent p
rope
rty
38,3
05
-
-
-
-
-
- 38
,305
Tr
ansf
er to
oth
er c
urre
nt a
sset
s -
-
(6,3
95)
-
- -
-
(6,3
95)
Tran
sfer
s in
(out
) 64
,035
49
7,27
7
2,99
6,05
0
50,3
96
3,
989
(3
,369
,468
) 18
,016
26
0,29
5 Cu
rrenc
y tra
nsla
tion
diffe
renc
es
(40,
439)
(1
55,7
20)
(9
81,2
81)
(6
,097
) (4
,820
)
(62,
617)
- (1
,250
,974
) At
31
Dece
mbe
r 201
9 7,
925,
183
20,0
76,8
98
14
2,08
5,95
3 2,
048,
013
58
8,79
6 7,
758,
728
41,6
84
180,
525,
255
1112019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Not
es t
o th
e fin
anci
al s
tate
men
ts
SCG
Pac
kagi
ng P
ublic
Com
pany
Lim
ited
and
its S
ubsi
diar
ies
For
the
year
end
ed 3
1 Dec
embe
r 20
19 a
nd 2
018
Fu
rnitu
re,
La
nd a
nd
M
achi
nery
fixtu
res
and
Tran
spor
tation
la
nd
Bu
ildin
gs a
nd
an
d
offic
e
and
Co
nstru
ction
impr
ovem
ents
st
ruct
ures
equi
pmen
t
equi
pmen
t
equi
pmen
t
in pr
ogres
s
Bear
er p
lant
Tota
l
(in th
ousa
nd B
aht)
Accu
mul
ated
dep
reci
atio
n an
d
ac
cum
ulat
ed im
pairm
ent l
osse
s At
1 Ja
nuar
y 20
18
1,0
81,6
03
9
,002
,688
6
9,95
6,35
7
1
,388
,192
301
,617
-
6,1
27
81,
736,
584
Ac
quisi
tion
thro
ugh
busin
ess
com
bina
tions
-
1
3,91
3
1
61,0
34
1
1,13
3
48
5
- -
1
86,5
65
Depr
ecia
tion
char
ge fo
r the
yea
r 1
02,8
91
527
,834
4
,487
,521
1
41,4
38
41,
355
-
3,3
94
5,3
04,4
33
Impa
irmen
t los
ses
-
9,
688
14
,438
-
-
-
- 24
,126
Di
spos
als/
writ
ten
off
(193
) (1
3,98
8)
(1,5
04,6
90)
(103
,272
) (2
8,83
8)
- -
(1,6
50,9
81)
Tran
sfer
to o
ther
cur
rent
ass
ets
- (1
45,7
64)
(2,7
18)
(3,5
69)
- -
- (1
52,0
51)
Curre
ncy
trans
latio
n di
ffere
nces
(2
,980
) (3
2,78
9)
(251
,185
) (1
1,08
0)
(814
) -
- (2
98,8
48)
At 3
1 De
cem
ber 2
018
1,1
81,3
21
9,3
61,5
82
72,
860,
757
1
,422
,842
3
13,8
05
- 9
,521
8
5,14
9,82
8 Ac
quisi
tion
thro
ugh
busin
ess
com
bina
tions
-
670,
534
6,83
6,12
9 94
,471
13
7,62
8
- -
7,73
8,76
2 De
prec
iatio
n ch
arge
for t
he y
ear
99,1
22
620,
844
4,95
8,23
9 14
7,32
5 48
,211
- 3,
457
5,87
7,19
8 Im
pairm
ent l
osse
s -
- 34
,033
-
-
2,
590
-
36,6
23
Disp
osal
s/w
ritte
n of
f (1
21)
(21,
229)
(7
82,2
26)
(19,
766)
(2
9,59
3)
-
- (8
52,9
35)
Tran
sfer
to o
ther
cur
rent
ass
ets
- -
(5
,670
)
- -
-
- (5
,670
)
Tran
sfer
s in
(out
) (1
3,22
8)
36,5
75
267,
745
7,03
8 (7
97)
-
327
29
7,66
0 Cu
rrenc
y tra
nsla
tion
diffe
renc
es
(2,0
25)
(59,
783)
(5
09,7
58)
(4,4
92)
(3,7
20)
-
-
(579
,778
) At
31
Dece
mbe
r 201
9 1
,265
,069
10
,608
,523
83
,659
,249
1,
647,
418
46
5,53
4
2
,590
13
,305
9
7,66
1,68
8
Annual Report 2019 SCG Packaging Public Company Limited112
Not
es t
o th
e fin
anci
al s
tate
men
ts
SCG
Pac
kagi
ng P
ublic
Com
pany
Lim
ited
and
its S
ubsi
diar
ies
For
the
year
end
ed 3
1 Dec
embe
r 20
19 a
nd 2
018
* Th
ese
incl
ude
mac
hine
ry a
cqui
red
unde
r fin
ancia
l lea
se w
ith c
arry
ing
amou
nt B
aht 1
,644
mill
ion
at 3
1 De
cem
ber 2
019
(201
8: B
aht 5
0 m
illio
n).
In 2
019,
the
Grou
p ca
pita
lized
bor
row
ing
cost
s re
latin
g to
the
acqu
isitio
n of
the
prop
erty
, pla
nt a
nd e
quip
men
t wer
e ca
pita
lized
as
part
of th
e co
st o
f con
stru
ctio
n in
pro
gres
s,
amou
ntin
g to
Bah
t 81
mill
ion
(201
8: B
aht 2
5 m
illio
n), r
ates
of i
nter
est c
apita
lized
at 1
.95%
- 5.
45%
per
ann
um (2
018:
1.9
0% -
5.65
% p
er a
nnum
).
Durin
g 20
19, t
he G
roup
had
inco
me
from
sal
es o
f som
e as
sets
in S
inga
pore
from
a b
usin
ess
whi
ch w
as te
rmin
ated
in Ju
ne 2
018.
The
gro
up re
cogn
ized
a ga
in o
n sa
le o
f fixe
d
asse
ts a
mou
ntin
g to
Bah
t 260
mill
ion
in th
e co
nsol
idat
ed in
com
e st
atem
ent f
or th
e ye
ar e
nded
31
Dece
mbe
r 201
9.
For
the
purp
ose
of im
pairm
ent
test
ing
of p
rope
rty, p
lant
and
equ
ipm
ent
of t
he G
roup
whe
re in
dica
tors
occu
rred,
the
rec
over
able
am
ount
was
bas
ed o
n its
val
ue in
use
,
dete
rmin
ed b
y di
scou
ntin
g th
e fu
ture
cas
h flo
ws
whi
ch in
clud
ed e
stim
ates
for f
ive y
ears
and
a te
rmin
al g
row
th ra
te th
erea
fter.
The
term
inal
gro
wth
rate
was
det
erm
ined
bas
ed
on th
e lo
ng-te
rm c
ompo
und
annu
al E
BITD
A gr
owth
rate
est
imat
ed b
y m
anag
emen
t. Di
scou
nt ra
te w
as d
eter
min
ed b
y us
ing
wei
ghte
d av
erag
e co
st o
f cap
ital o
f the
Gro
up.
Fu
rnitu
re,
La
nd a
nd
M
achi
nery
fixtu
res
and
Tran
spor
tation
la
nd
Bu
ildin
gs a
nd
an
d
offic
e
and
Co
nstru
ction
impr
ovem
ents
st
ruct
ures
equi
pmen
t
equi
pmen
t
equi
pmen
t
in pr
ogres
s
Bear
er p
lant
Tota
l
(in th
ousa
nd B
aht)
Carr
ying
am
ount
At 3
1 De
cem
ber 2
018
3,13
2,23
9
8,35
3,61
1
41,4
35,2
30*
37
1,74
4
116,
589
4,
955,
368
13
,866
58,3
78,6
47
At 3
1 De
cem
ber 2
019
6,66
0,11
4
9,46
8,37
5
58,4
26,7
04*
40
0,59
5
123,
262
7,
756,
138
28
,379
82,8
63,5
67
1132019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
13 Goodwill
Note 2019 2018
(in thousand Baht)
At 1 January 2,289,836 1,994,878
Acquisitions through business combinations 4 15,475,019 318,504
Currency translation differences (152,589) (23,546)
At 31 December 17,612,266 2,289,836
For the purpose of impairment testing of goodwill of the Group, the recoverable amount was based on its
value in use, determined by discounting the future cash flows which included estimates for five years and
a terminal growth rate thereafter. The terminal growth rate was determined based on the long-term
compound annual EBITDA growth rate estimated by management. Discount rate was determined by using
weighted average cost of capital of the Group.
14 Other intangible assets
Technology Customer Software licenses and contracts and licenses knowhow relationship Total (in thousand Baht) Cost At 1 January 2018 936,393 - - 936,393 Additions 77,220 - - 77,220 Disposals/written off (4,371) - - (4,371) Transfers in 26,875 - - 26,875 Currency translation differences (331) - - (331) At 31 December 2018 1,035,786 - - 1,035,786 Acquisition through business combinations
67,948
374,341
153,597
595,886
Additions 75,313 - - 75,313 Disposals/written off (9,610) - - (9,610) Transfers in 10,108 - - 10,108 Currency translation differences (2,928) - - (2,928) At 31 December 2019 1,176,617 374,341 153,597 1,704,555
Annual Report 2019 SCG Packaging Public Company Limited114
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Technology Customer Software licenses and contracts and licenses knowhow relationship Total (in thousand Baht) Accumulated amortization At 1 January 2018 659,983 - - 659,983 Amortization charge for the year 72,544 - - 72,544 Disposals/written off (4,295) - - (4,295) Currency translation differences (162) - - (162) At 31 December 2018 728,070 - - 728,070 Acquisition through business combinations
64,403
-
-
64,403
Amortization charge for the year 77,624 24,081 8,319 110,024 Disposals/written off (9,598) - - (9,598) Currency translation differences (2,376) - - (2,376) At 31 December 2019 858,123 24,081 8,319 890,523 Carrying amount At 31 December 2018 307,716 - - 307,716 At 31 December 2019 318,494 350,260 145,278 814,032
15 Deferred tax assets (deferred tax liabilities)
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax assets
and liabilities, and they relate to income taxes levied by the same tax authority on the same taxable entity,
and are included in the consolidated statements of financial position as follows:
2019 2018
(in thousand Baht)
Deferred tax assets 744,955 378,649
Deferred tax liabilities (2,873,568) (216,694)
Net (2,128,613) 161,955
1152019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Movements in total deferred tax assets and liabilities during the year were as follows:
Credited (charged) to
other Increase
At 1 profit comprehensive through Currency At 31
January or loss income business translation December
2018 (Note 27) combinations differences 2018
(in thousand Baht)
Deferred tax assets
Loss carry forward 83,863 (56,067) - - - 27,796
Trade receivables 28,748 (8,144) - - - 20,604
Inventories 54,453 34,927 - - - 89,380
Property, plant and equipment 39,137 (12,310) - - (134) 26,693
Provisions for employee benefits 309,125 18,824 65,805 - (1,708) 392,046
Others 859 (5) - - (2) 852
Total 516,185 (22,775) 65,805 - (1,844) 557,371
Deferred tax liabilities
Property, plant and equipment 339,317 35,285 - 13,435 (173) 387,864
Others 41,891 (34,339) - - - 7,552
Total 381,208 946 - 13,435 (173) 395,416
Net 134,977 (23,721) 65,805 (13,435) (1,671) 161,955
Annual Report 2019 SCG Packaging Public Company Limited116
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Credited (charged) to
other Increase
At 1 profit comprehensive through Currency At 31
January or loss income business translation December
2019 (Note 27) combinations differences 2019
(in thousand Baht)
Deferred tax assets
Loss carry forward 27,796 221,119 - 38,618 (335) 287,198
Trade receivables 20,604 6,454 - - (1) 27,057
Inventories 89,380 15,255 - 6,241 (43) 110,833
Property, plant and equipment 26,693 (4,686) - - 116 22,123
Provisions for employee benefits 392,046 137,085 38,139 144,303 (2,237) 709,336
Others 852 2,681 - - (71) 3,462
Total 557,371 377,908 38,139 189,162 (2,571) 1,160,009
Deferred tax liabilities
Property, plant and equipment 387,864 55,489 - 2,727,285 1,603 3,172,241
Other intangible assets - (32) - 106,011 (3) 105,976
Others 7,552 (741) - 3,599 (5) 10,405
Total 395,416 54,716 - 2,836,895 1,595 3,288,622
Net 161,955 323,192 38,139 (2,647,733) (4,166) (2,128,613)
1172019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
The deductible temporary differences and unused tax losses that the Group have not been recognized as
deferred tax assets (liabilities) are as the following items:
2019 2018 (in thousand Baht)
Temporary differences
- Trade receivables 46,848 57,417 - Inventories 622 5,522
- Provisions for employee benefits 92,159 96,368
- Property, plants and equipment 3,328 22,624 - Others 67,957 29,058
Unused tax losses 449,646 140,677
Total 660,560 351,666
The deductible temporary differences do not expire under current tax legislation and the tax losses which
would be expired within 2024. The Group has not recognized these items in deferred tax assets.
As at 31 December 2019 and 2018, no deferred tax liability has been recognized in respect of temporary
differences associated with investments in subsidiaries, where the Group is in a position to control the timing
of the reversal of the temporary differences and it is probable that such difference will not reverse in the
foreseeable future.
16 Changes in liabilities arising from financing activities
Note
Bank overdrafts
and
short-term borrowings
Long-term borrowings
Finance
lease liabilities Total
(in thousand Baht)
Balance at 1 January 2019 27,728,164 739,125 29,150 28,496,439 Changes from financing cash flows 10,451,382 11,559,751 (65,136) 21,945,997
Changes arising from obtaining subsidiaries 4 2,923,100 6,412,714 160,282 9,496,096
The effect of changes in foreign exchange rates (143,941) (209,530) (1,158) (354,629)
Balance at 31 December 2019 40,958,705 18,502,060 123,138 59,583,903
Annual Report 2019 SCG Packaging Public Company Limited118
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
17 Bank overdrafts and borrowings from financial institutions
2019 2018
(in thousand Baht)
Current
Bank overdrafts and short-term borrowings from financial institutions
Unsecured 7,131,509 4,312,464
Total 7,131,509 4,312,464
Current portion of long-term borrowings from financial institution
Secured 2,037,784 -
Unsecured 145,851 151,996
Current portion of long-term borrowings 2,183,635 151,996
9,315,144 4,464,460
Non-current
Long-term borrowings from financial institutions
Secured 3,405,857 -
Unsecured 12,912,568 587,129
16,318,425 587,129
Total 25,633,569 5,051,589
The currency denomination of interest-bearing debts, as at 31 December 2019 were as follows:
2019 2018 (in thousand Baht)
Thai Baht 14,462,270 3,171,799
US Dollars 7,677,933 514,189 Indonesian Rupiah 2,051,454 -
Vietnamese Dong 899,652 1,036,250
Malaysian Ringgit 426,313 329,351 Philippines Peso 115,947 -
Total 25,633,569 5,051,589
1192019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
The periods to maturity of interest-bearing liabilities, excluding finance lease liabilities, as at
31 December 2019 were as follows:
2019 2018
(in thousand Baht)
Within one year 9,315,143 4,464,460
After one year but within five years 15,597,076 527,656
After five years 721,350 59,473
Total 25,633,569 5,051,589
As at 31 December 2019, bank overdrafts and short-term borrowings from financial institutions of the Group
has an average interest rate from 1.28% to 9.75% per annum (31 December 2018: 1.58% to 5.70%
per annum).
As at 31 December 2019, long-term borrowings from financial institutions of the Group has an average
interest rate from 2.40% to 12.11% per annum (31 December 2018: 3.50% to 6.97% per annum).
The collateral of the secured interest-bearing liabilities from the business acquisition in Indonesia as at
31 December 2019 consists of property, plant and equipment with a carrying value of Baht 9,633 million.
The Group has to comply with certain covenants. As at 31 December 2019, the Group is in compliance with
all the terms and conditions of the loans agreement. The Group has already signed facility agreement for
unsecured long-term borrowings from financial institutions with principal amount totaling US Dollars 180
million and Indonesian Rupiah 700,000 million to refinance existing loans.
As at 31 December 2019, the Group had unutilized credit facilities totaling Baht 15,125 million. In January 2020, the Company has drawn-down under loan agreements for Baht 14,500 million.
Annual Report 2019 SCG Packaging Public Company Limited120
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
18 Trade and other current payables
Note 2019 2018
(in thousand Baht)
Trade payables
Related parties 5 1,020,867 1,336,324
Other parties 6,436,244 5,484,711
7,457,111 6,821,035
Other current payables
Related parties 5 211,963 257,124
Other parties 2,389,490 1,495,507
2,601,453 1,752,631
Total 10,058,564 8,573,666
19 Finance lease liabilities
Subsidiaries entered into leased machinery and equipment agreements. Lease terms are for a period of
3 - 5 years. Finance lease liabilities as at 31 December are as follows:
Principal Interest Payments
(in thousand Baht)
Year 2019
Within one year 87,801 8,998 96,799
After one year but within five years 35,337 1,663 37,000
Total 123,138 10,661 133,799
Year 2018
Within one year 13,823 1,050 14,873
After one year but within five years 15,327 666 15,993
Total 29,150 1,716 30,866
1212019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
20 Non-current provisions for employee benefits
The Group operates defined benefit plans based on the requirement of the Thai Labor Protection Act B.E.
2541 to provide retirement benefits and other long-term benefits to employees based on pensionable
remuneration and length of service.
The defined benefit plans expose the Group to actuarial risks, such as longevity risk, current risk, interest
rate risk and market (investment) risk.
Non-current provisions for employee benefits in consolidated statement of financial position as at 31 December
2019 2018
(in thousand Baht) Post-employment benefits
Legal severance payments plan 3,248,040 1,800,293
Pension 46,027 41,682 Other long-term employee benefits 92,437 86,224
Total non-current provisions for defined benefit plans 3,386,504 1,928,199
Other employee benefits 10,552 -
Total 3,397,056 1,928,199 Less plan assets of foreign subsidiaries (21,699) (22,561)
Total non-current provisions for employee benefits - net 3,375,357 1,905,638
Movement in the present value of non-current provisions for defined benefits plans
2019 2018 (in thousand Baht)
Non-current provisions for defined benefit plans at 1 January 1,928,199 1,508,125
Included in profit or loss
Current service costs 165,863 88,992
Interest on obligation 109,898 54,128 Actuarial losses 15,472 9,029
Transfer of employee benefit obligations from related party 13,547 -
Past service cost from the amended severance pay of the Labor Law 527,368 -
832,148 152,149
Annual Report 2019 SCG Packaging Public Company Limited122
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
2019 2018
(in thousand Baht)
Included in other comprehensive income
Actuarial losses 200,672 343,401 Currency translation differences (11,926) (12,054)
188,746 331,347
Others
Benefits paid (139,803) (71,668)
Acquisition through business combinations 577,214 - Others - 8,246
437,411 (63,422)
Non-current provisions for defined benefit plans at 31 December 3,386,504 1,928,199
On 5 April 2019, the Labor Protection Act has already been announced in Royal Gazette that became
effective on 5 May 2019 to include a requirement that an employee who is terminated after having been
employed by the same employer for an uninterrupted period of twenty years or more, receives severance
payment of 400 days of wages at the most recent rate, which is increased from the maximum rate of 300
days. The Group recognized the effect of this change as the expense amounted to Baht 527 million in
consolidated income statement, resulting in the decrease in net profit amounted to Baht 338 million.
Movements in the fair value of plan assets of foreign subsidiaries
2019 2018
(in thousand Baht)
Plan assets at 1 January 22,561 26,184
Contributions paid into the plan 7,315 4,786
Benefits paid (7,315) (8,211)
Expected return on plan assets - 1,261
Actuarial gains - 174
Currency translation differences (862) (1,633)
Plan assets at 31 December 21,699 22,561
1232019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Actuarial losses (gains) recognized in other comprehensive income as of the end of the reporting period
arising from:
2019 2018
(in thousand Baht)
For the years ended 31 December
Demographic assumptions (1,348) 69,614
Financial assumptions 158,479 21,726
Experience adjustment 43,541 251,887
Total 200,672 343,227
Actuarial assumptions
Principal actuarial assumptions as of the end of the reporting period
2019 2018
(%)
For the years ended 31 December
Discount rate *
- Thailand 1.46 - 1.90 2.67 - 3.51
- Vietnam 4.01 5.10
- Indonesia 7.5 - 8.05 5.40 - 8.60
- Philippines 5.50 6.17
Salary increase rate 2.00 - 8.00 3.00 - 7.00
Employee turnover rate ** 2.00 - 50.00 0.00 - 30.00
Mortality rate *** 50.00, 100.00 50.00, 100.00
of TMO2017 of TMO2017
* Market yields on government’s bonds for legal severance payments plan and pension
** Upon the length of service
*** Reference from TMO2017: Thai Mortality Ordinary Table 2017
Annual Report 2019 SCG Packaging Public Company Limited124
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Sensitivity analysis
Reasonably possible changes at the end of the reporting period to one of the relevant actuarial assumptions,
holding other assumptions constant, would have affected the non-current provisions for defined benefit
plans by the amounts shown below.
Effect on the non-current provisions for defined benefit plans at 31 December
Increase (decrease)
2019 2018
(in thousand Baht)
Discount rate
0.50% increase (147,956) (90,188)
0.50% decrease 161,670 98,360
Salary increase rate
1.00% increase 322,451 193,545
1.00% decrease (276,639) (166,651)
Employee turnover rate
10.00% increase (74,066) (44,674)
10.00% decrease 77,347 46,603
Although the analysis does not take account of the full distribution of cash flows expected under the plan,
it does provide an approximation of the sensitivity of the assumptions shown.
Plan assets of foreign subsidiaries
2019 2018
(%)
For the years ended 31 December
Discount rate 5.50 6.17
1252019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
21 Share capital
2019 2018
Par Number Number
Value of shares Value of shares Value
(in Baht) (in thousand shares / thousand Baht) (in thousand shares / thousand Baht)
Authorized
At 1 January
- ordinary shares 10 - - 156,300 1,563,000
Reduction in par value
- ordinary shares 1 1,563,000 1,563,000 - -
Increase of new shares
- ordinary shares 1 2,937,000 2,937,000 - -
At 31 December
- ordinary shares 10 - - 156,300 1,563,000
- ordinary shares 1 4,500,000 4,500,000 - -
Issued and paid-up
At 1 January
- ordinary shares 10 - - 156,300 1,563,000
Reduction in par value
- ordinary shares 1 1,563,000 1,563,000 - -
Increase of new shares
- ordinary shares 1 1,563,000 1,563,000 - -
At 31 December
- ordinary shares 10 - - 156,300 1,563,000
- ordinary shares 1 3,126,000 3,126,000 - -
Annual Report 2019 SCG Packaging Public Company Limited126
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
On November 25, 2019, at the extraordinary general meeting of shareholders of the Company, shareholders
approved as follows;
1. Reduction in par value of the Company’s shares, from Baht 10 per share, totaling 156,300,000 shares to
Baht 1 per share, totaling 1,563,000,000 shares. As a result, the number of authorized shares, and issued and
paid-up shares increased by 1,406,700,000 shares. The authorized share capital and issued and paid-up
share capital of the Company remain unchanged. The Company completed the registration of the change
with the Ministry of Commerce on 25 November 2019.
2. Increasing of authorized share capital of the Company from Baht 1,563 million to Baht 4,500 million by
issuing stock dividends of 1,563,000,000 shares at par value of Baht 1 per share in the ratio of 1 current
share per 1 dividend share and issuing new ordinary shares of 1,374,000,000 shares at par value of Baht
1 per share. The Company completed the registration of the change with the Ministry of Commerce on
25 November 2019.
22 Reserves and other components of shareholders’ equity
Share premium
Section 51 of the Public Companies Act B.E. 2535 requires companies to set aside share subscription monies
received in excess of the par value of the shares issued to a reserve account (“share premium”). Share
premium is not available for dividend distribution.
Legal reserve
Section 116 of the Public Companies Act B.E. 2535 requires that a company shall allocate not less than 5%
of its annual net profit, less any accumulated losses brought forward (if any), to a reserve account (“legal
reserve”), until this account reaches an amount not less than 10% of the registered authorized capital.
The legal reserve is not available for dividend distribution.
Currency translation differences
The currency translation differences account within equity comprises all foreign currency differences arising
from the translation of the financial statements of the Group’s foreign operations until disposal of
investment.
1272019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
23 Business segment information
Segment information is presented in respect of the Group’s business segments. The primary format, business
segments, is based on the Group’s management and internal reporting structure.
Segment assets, revenues and results of operations include items directly attributable to a segment as well
as those that can be allocated on a reasonable basis.
Business segments
The Group comprises the following main business segments:
Integrated Packaging Chain Manufacture and sale of packaging paper, various types of packaging, including
fiber-based packaging and performance and polymer packaging (flexible
packaging and rigid packaging);
Fibrous Chain Manufacture and sale of pulp, dissolving pulp, printing and writing paper and
food service products; and
Other Holding company
The business segment information is used by management to evaluate the performance of segments and
to allocate resources. The Group evaluates operating performance based on EBITDA.
Information relating to business segments for years ended 31 December was as follows:
Annual Report 2019 SCG Packaging Public Company Limited128
Not
es t
o th
e fin
anci
al s
tate
men
ts
SCG
Pac
kagi
ng P
ublic
Com
pany
Lim
ited
and
its S
ubsi
diar
ies
For
the
year
end
ed 3
1 Dec
embe
r 20
19 a
nd 2
018
O
pera
ting
resu
lts o
f bus
ines
s se
gmen
ts
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
Info
rmat
ion
from
st
atem
ent o
f fin
anci
al p
ositi
on
Curre
nt a
sset
s29
,893
,363
24,1
24,7
67
5,
881,
566
6,49
8,14
4
34
,339
,430
18,0
84,2
06
(3
4,73
1,03
6)
(18,
632,
843)
35
,383
,323
30,0
74,2
74
Inve
stm
ents
in a
ssoc
iates
--
340,
523
30
3,29
4
430,
231
42
6,44
6
--
770,
754
72
9,74
0
Inve
stm
ents
and
long
-term
loan
s82
3,15
0
823,
150
47
7
-34
,447
,438
28,3
98,3
65
(3
5,25
4,39
6)
(29,
205,
323)
16
,669
16,1
92
Prop
erty
, pla
nt a
nd e
quip
men
t63
,651
,687
38,3
24,6
52
18
,739
,416
19,5
73,1
53
21
3,34
1
225,
595
25
9,12
3
255,
247
82
,863
,567
58,3
78,6
47
Oth
ers
non-
curre
nt a
sset
s19
,324
,145
3,16
5,45
7
98
2,05
9
720,
722
43
0,60
3
420,
444
(2
58,0
75)
(2
59,2
91)
20
,478
,732
4,04
7,33
2
Tota
l ass
ets
113,
692,
345
66
,438
,026
25
,944
,041
27
,095
,313
69
,861
,043
47
,555
,056
(6
9,98
4,38
4)
(47,
842,
210)
13
9,51
3,04
5
93,2
46,1
85
Shor
t-ter
m b
orro
win
gs41
,463
,749
19,9
80,9
49
1,
961,
047
2,46
6,28
0
33
,907
,033
23,3
43,4
02
(3
4,10
1,68
8)
(17,
896,
648)
43
,230
,141
27,8
93,9
83
Oth
er c
urre
nt li
abilit
ies
9,41
8,07
3
8,
009,
172
1,72
8,49
4
1,
857,
949
266,
581
15
2,86
4
(629
,245
)
(722
,495
)
10,7
83,9
03
9,
297,
490
Long
-term
bor
row
ings
3,98
7,80
1
27
4,82
9
365,
961
32
7,62
7
12,0
00,0
00
-
--
16,3
53,7
62
60
2,45
6
Oth
er n
on-c
urre
nt li
abilit
ies
5,31
8,25
9
1,
474,
455
704,
891
55
0,47
1
306,
094
16
7,59
9
--
6,32
9,24
4
2,
192,
525
Tota
l liab
ilitie
s60
,187
,882
29,7
39,4
05
4,
760,
393
5,20
2,32
7
46
,479
,708
23,6
63,8
65
(3
4,73
0,93
3)
(18,
619,
143)
76
,697
,050
39,9
86,4
54
Shar
ehol
ders
’ equ
ity53
,504
,463
36,6
98,6
21
21
,183
,648
21,8
92,9
86
23
,381
,335
23,8
91,1
91
(3
5,25
3,45
1)
(29,
223,
067)
62
,815
,995
53,2
59,7
31
Tota
l lia
bilit
ies
and
shar
ehol
ders
' equ
ity11
3,69
2,34
5
66,4
38,0
26
25,9
44,0
41
27,0
95,3
13
69,8
61,0
43
47,5
55,0
56
(69,
984,
384)
(4
7,84
2,21
0)
139,
513,
045
93
,246
,185
Cons
olid
ated
(in th
ousa
nd B
aht)
Inte
grat
ed P
acka
ging
Inte
rseg
men
t
Chain
Fibro
us C
hain
Oth
erEl
imin
atio
n
Not
es t
o th
e fin
anci
al s
tate
men
ts
SCG
Pac
kagi
ng P
ublic
Com
pany
Lim
ited
and
its S
ubsi
diar
ies
For
the
year
end
ed 3
1 Dec
embe
r 20
19 a
nd 2
018
O
pera
ting
resu
lts o
f bus
ines
s se
gmen
ts
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
Info
rmat
ion
from
st
atem
ent o
f fin
anci
al p
ositi
on
Curre
nt a
sset
s29
,893
,363
24,1
24,7
67
5,
881,
566
6,49
8,14
4
34
,339
,430
18,0
84,2
06
(3
4,73
1,03
6)
(18,
632,
843)
35
,383
,323
30,0
74,2
74
Inve
stm
ents
in a
ssoc
iates
--
340,
523
30
3,29
4
430,
231
42
6,44
6
--
770,
754
72
9,74
0
Inve
stm
ents
and
long
-term
loan
s82
3,15
0
823,
150
47
7
-34
,447
,438
28,3
98,3
65
(3
5,25
4,39
6)
(29,
205,
323)
16
,669
16,1
92
Prop
erty
, pla
nt a
nd e
quip
men
t63
,651
,687
38,3
24,6
52
18
,739
,416
19,5
73,1
53
21
3,34
1
225,
595
25
9,12
3
255,
247
82
,863
,567
58,3
78,6
47
Oth
ers
non-
curre
nt a
sset
s19
,324
,145
3,16
5,45
7
98
2,05
9
720,
722
43
0,60
3
420,
444
(2
58,0
75)
(2
59,2
91)
20
,478
,732
4,04
7,33
2
Tota
l ass
ets
113,
692,
345
66
,438
,026
25
,944
,041
27
,095
,313
69
,861
,043
47
,555
,056
(6
9,98
4,38
4)
(47,
842,
210)
13
9,51
3,04
5
93,2
46,1
85
Shor
t-ter
m b
orro
win
gs41
,463
,749
19,9
80,9
49
1,
961,
047
2,46
6,28
0
33
,907
,033
23,3
43,4
02
(3
4,10
1,68
8)
(17,
896,
648)
43
,230
,141
27,8
93,9
83
Oth
er c
urre
nt li
abilit
ies
9,41
8,07
3
8,
009,
172
1,72
8,49
4
1,
857,
949
266,
581
15
2,86
4
(629
,245
)
(722
,495
)
10,7
83,9
03
9,
297,
490
Long
-term
bor
row
ings
3,98
7,80
1
27
4,82
9
365,
961
32
7,62
7
12,0
00,0
00
-
--
16,3
53,7
62
60
2,45
6
Oth
er n
on-c
urre
nt li
abilit
ies
5,31
8,25
9
1,
474,
455
704,
891
55
0,47
1
306,
094
16
7,59
9
--
6,32
9,24
4
2,
192,
525
Tota
l liab
ilitie
s60
,187
,882
29,7
39,4
05
4,
760,
393
5,20
2,32
7
46
,479
,708
23,6
63,8
65
(3
4,73
0,93
3)
(18,
619,
143)
76
,697
,050
39,9
86,4
54
Shar
ehol
ders
’ equ
ity53
,504
,463
36,6
98,6
21
21
,183
,648
21,8
92,9
86
23
,381
,335
23,8
91,1
91
(3
5,25
3,45
1)
(29,
223,
067)
62
,815
,995
53,2
59,7
31
Tota
l lia
bilit
ies
and
shar
ehol
ders
' equ
ity11
3,69
2,34
5
66,4
38,0
26
25,9
44,0
41
27,0
95,3
13
69,8
61,0
43
47,5
55,0
56
(69,
984,
384)
(4
7,84
2,21
0)
139,
513,
045
93
,246
,185
Cons
olid
ated
(in th
ousa
nd B
aht)
Inte
grat
ed P
acka
ging
Inte
rseg
men
t
Chain
Fibro
us C
hain
Oth
erEl
imin
atio
n
1292019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Not
es t
o th
e fin
anci
al s
tate
men
ts
SCG
Pac
kagi
ng P
ublic
Com
pany
Lim
ited
and
its S
ubsi
diar
ies
For
the
year
end
ed 3
1 Dec
embe
r 20
19 a
nd 2
018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
Info
rmat
ion
from
inco
me
stat
emen
t
Reve
nue
from
sal
es
Ext
erna
l cus
tom
ers
71,6
25,2
19
68
,233
,478
17,4
44,6
48
19
,021
,391
--
--
89,0
69,8
67
87
,254
,869
Int
erse
gmen
t38
0,58
7
349,
065
1,
349,
383
1,72
4,59
9
-
-(1
,729
,970
)
(2
,073
,664
)
-
-
Tota
l rev
enue
from
sal
es72
,005
,806
68,5
82,5
43
18
,794
,031
20,7
45,9
90
-
-(1
,729
,970
)
(2
,073
,664
)
89
,069
,867
87,2
54,8
69
Cost
of s
ales
(56,
245,
390)
(5
3,76
6,60
7)
(17,
483,
358)
(1
7,64
8,38
8)
--
2,07
7,40
3
2,
340,
713
(71,
651,
345)
(6
9,07
4,28
2)
Gros
s pr
ofit
15,7
60,4
16
14
,815
,936
1,31
0,67
3
3,
097,
602
--
347,
433
26
7,04
9
17,4
18,5
22
18
,180
,587
Oth
er in
com
e91
4,17
9
614,
117
22
2,95
3
139,
907
3,
154,
113
9,
515,
791
(3
,450
,031
)
(9
,754
,864
)
84
1,21
4
514,
951
Prof
it be
fore
exp
ense
s16
,674
,595
15,4
30,0
53
1,
533,
626
3,23
7,50
9
3,
154,
113
9,51
5,79
1
(3
,102
,598
)
(9
,487
,815
)
18
,259
,736
18,6
95,5
38
Ope
ratin
g ex
pens
es(7
,600
,011
)
(7
,137
,719
)
(2
,080
,158
)
(2
,534
,738
)
(1
,631
,573
)
(1
,374
,205
)
1,
558,
403
1,49
9,18
6
(9
,753
,339
)
(9
,547
,476
)
Prof
it be
fore
fina
nce
cost
and
inco
me
tax
9,07
4,58
4
8,
292,
334
(546
,532
)
702,
771
1,
522,
540
8,14
1,58
6
(1
,544
,195
)
(7
,988
,629
)
8,
506,
397
9,14
8,06
2
Finan
ce c
ost
(1,2
37,2
71)
(757
,416
)
(82,
462)
(8
6,91
7)
(299
,440
)
(195
,404
)
356
10
0
(1,6
18,8
17)
(1,0
39,6
37)
Prof
it be
fore
inco
me
tax
7,83
7,31
3
7,
534,
918
(628
,994
)
615,
854
1,
223,
100
7,94
6,18
2
(1
,543
,839
)
(7
,988
,529
)
6,
887,
580
8,10
8,42
5
Tax
expe
nse
(1,2
22,8
21)
(1,2
10,8
71)
155,
075
(6
9,69
0)
22,5
48
(2
1,18
8)
(3,8
50)
34,2
27
(1
,049
,048
)
(1
,267
,522
)
Prof
it af
ter i
ncom
e ta
x6,
614,
492
6,32
4,04
7
(4
73,9
19)
54
6,16
4
1,24
5,64
8
7,
924,
994
(1,5
47,6
89)
(7,9
54,3
02)
5,83
8,53
2
6,
840,
903
Shar
e of
pro
fit (l
oss)
of a
ssoc
iates
--
39,4
85
(3
1,75
4)
13,2
43
17
,151
--
52,7
28
(1
4,60
3)
Prof
it fo
r the
per
iods
6,61
4,49
2
6,
324,
047
(434
,434
)
51
4,41
0
1,25
8,89
1
7,
942,
145
(1,5
47,6
89)
(7,9
54,3
02)
5,
891,
260
6,82
6,30
0
Cons
olid
ated
(in th
ousa
nd B
aht)
Inte
grat
ed P
acka
ging
Inte
rseg
men
t
Chain
Fibro
us C
hain
Oth
erEl
imin
atio
n
Not
es t
o th
e fin
anci
al s
tate
men
ts
SCG
Pac
kagi
ng P
ublic
Com
pany
Lim
ited
and
its S
ubsi
diar
ies
For
the
year
end
ed 3
1 Dec
embe
r 20
19 a
nd 2
018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
Info
rmat
ion
from
inco
me
stat
emen
t
Reve
nue
from
sal
es
Ext
erna
l cus
tom
ers
71,6
25,2
19
68
,233
,478
17,4
44,6
48
19
,021
,391
--
--
89,0
69,8
67
87
,254
,869
Int
erse
gmen
t38
0,58
7
349,
065
1,
349,
383
1,72
4,59
9
-
-(1
,729
,970
)
(2
,073
,664
)
-
-
Tota
l rev
enue
from
sal
es72
,005
,806
68,5
82,5
43
18
,794
,031
20,7
45,9
90
-
-(1
,729
,970
)
(2
,073
,664
)
89
,069
,867
87,2
54,8
69
Cost
of s
ales
(56,
245,
390)
(5
3,76
6,60
7)
(17,
483,
358)
(1
7,64
8,38
8)
--
2,07
7,40
3
2,
340,
713
(71,
651,
345)
(6
9,07
4,28
2)
Gros
s pr
ofit
15,7
60,4
16
14
,815
,936
1,31
0,67
3
3,
097,
602
--
347,
433
26
7,04
9
17,4
18,5
22
18
,180
,587
Oth
er in
com
e91
4,17
9
614,
117
22
2,95
3
139,
907
3,
154,
113
9,
515,
791
(3
,450
,031
)
(9
,754
,864
)
84
1,21
4
514,
951
Prof
it be
fore
exp
ense
s16
,674
,595
15,4
30,0
53
1,
533,
626
3,23
7,50
9
3,
154,
113
9,51
5,79
1
(3
,102
,598
)
(9
,487
,815
)
18
,259
,736
18,6
95,5
38
Ope
ratin
g ex
pens
es(7
,600
,011
)
(7
,137
,719
)
(2
,080
,158
)
(2
,534
,738
)
(1
,631
,573
)
(1
,374
,205
)
1,
558,
403
1,49
9,18
6
(9
,753
,339
)
(9
,547
,476
)
Prof
it be
fore
fina
nce
cost
and
inco
me
tax
9,07
4,58
4
8,
292,
334
(546
,532
)
702,
771
1,
522,
540
8,14
1,58
6
(1
,544
,195
)
(7
,988
,629
)
8,
506,
397
9,14
8,06
2
Finan
ce c
ost
(1,2
37,2
71)
(757
,416
)
(82,
462)
(8
6,91
7)
(299
,440
)
(195
,404
)
356
10
0
(1,6
18,8
17)
(1,0
39,6
37)
Prof
it be
fore
inco
me
tax
7,83
7,31
3
7,
534,
918
(628
,994
)
615,
854
1,
223,
100
7,94
6,18
2
(1
,543
,839
)
(7
,988
,529
)
6,
887,
580
8,10
8,42
5
Tax
expe
nse
(1,2
22,8
21)
(1,2
10,8
71)
155,
075
(6
9,69
0)
22,5
48
(2
1,18
8)
(3,8
50)
34,2
27
(1
,049
,048
)
(1
,267
,522
)
Prof
it af
ter i
ncom
e ta
x6,
614,
492
6,32
4,04
7
(4
73,9
19)
54
6,16
4
1,24
5,64
8
7,
924,
994
(1,5
47,6
89)
(7,9
54,3
02)
5,83
8,53
2
6,
840,
903
Shar
e of
pro
fit (l
oss)
of a
ssoc
iates
--
39,4
85
(3
1,75
4)
13,2
43
17
,151
--
52,7
28
(1
4,60
3)
Prof
it fo
r the
per
iods
6,61
4,49
2
6,
324,
047
(434
,434
)
51
4,41
0
1,25
8,89
1
7,
942,
145
(1,5
47,6
89)
(7,9
54,3
02)
5,
891,
260
6,82
6,30
0
Cons
olid
ated
(in th
ousa
nd B
aht)
Inte
grat
ed P
acka
ging
Inte
rseg
men
t
Chain
Fibro
us C
hain
Oth
erEl
imin
atio
n
Annual Report 2019 SCG Packaging Public Company Limited130
Not
es t
o th
e fin
anci
al s
tate
men
ts
SCG
Pac
kagi
ng P
ublic
Com
pany
Lim
ited
and
its S
ubsi
diar
ies
For
the
year
end
ed 3
1 Dec
embe
r 20
19 a
nd 2
018
Reve
nue
from
sal
es o
f int
egra
ted
pack
agin
g ch
ain in
clud
ing
pack
agin
g pa
per 5
8%, f
iber
-bas
ed p
acka
ging
34%
, and
per
form
ance
and
pol
ymer
pac
kagin
g 8%
.
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
Prof
it (lo
ss) a
ttrib
utab
le to
:
O
wne
rs o
f the
par
ent
6,15
2,56
4
5,
928,
024
(429
,430
)
51
6,37
5
1,25
8,89
1
7,
942,
145
(1,7
13,5
14)
(8
,321
,005
)
5,26
8,51
1
6,
065,
539
No
n-co
ntro
lling
inte
rest
s46
1,92
8
396,
023
(5
,004
)
(1
,965
)
-
-
16
5,82
5
366,
703
62
2,74
9
760,
761
6,61
4,49
2
6,
324,
047
(434
,434
)
51
4,41
0
1,25
8,89
1
7,
942,
145
(1,5
47,6
89)
(7,9
54,3
02)
5,
891,
260
6,82
6,30
0
Inte
rest
inco
me
102,
149
59
,872
2,70
9
1,
235
29
28
-
-
104,
887
61
,135
Depr
eciat
ion
and
amor
tizat
ion
4,35
5,64
9
3,
811,
622
1,60
3,52
8
1,
537,
420
40,5
35
41
,647
(8,9
39)
(8,9
96)
5,99
0,77
3
5,
381,
693
Oth
er n
on-m
onet
ary
item
s:
- Im
pairm
ent l
osse
s on
inve
ntor
ies
8,86
7
11
3,49
7
84,5
74
56
,960
-
-
-
-
93,4
41
17
0,45
7
- Im
pairm
ent l
osse
s on
pla
nts
and
36,6
23
24
,126
-
-
-
-
-
-
36,6
23
24
,126
e
quip
men
t
Cons
olid
ated
(in th
ousa
nd B
aht)
Inte
grat
ed P
acka
ging
Inte
rseg
men
t
Chain
Fibro
us C
hain
Oth
erEl
imin
atio
n
Not
es t
o th
e fin
anci
al s
tate
men
ts
SCG
Pac
kagi
ng P
ublic
Com
pany
Lim
ited
and
its S
ubsi
diar
ies
For
the
year
end
ed 3
1 Dec
embe
r 20
19 a
nd 2
018
Reve
nue
from
sal
es o
f int
egra
ted
pack
agin
g ch
ain in
clud
ing
pack
agin
g pa
per 5
8%, f
iber
-bas
ed p
acka
ging
34%
, and
per
form
ance
and
pol
ymer
pac
kagin
g 8%
.
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
Prof
it (lo
ss) a
ttrib
utab
le to
:
O
wne
rs o
f the
par
ent
6,15
2,56
4
5,
928,
024
(429
,430
)
51
6,37
5
1,25
8,89
1
7,
942,
145
(1,7
13,5
14)
(8
,321
,005
)
5,26
8,51
1
6,
065,
539
No
n-co
ntro
lling
inte
rest
s46
1,92
8
396,
023
(5
,004
)
(1
,965
)
-
-
16
5,82
5
366,
703
62
2,74
9
760,
761
6,61
4,49
2
6,
324,
047
(434
,434
)
51
4,41
0
1,25
8,89
1
7,
942,
145
(1,5
47,6
89)
(7,9
54,3
02)
5,
891,
260
6,82
6,30
0
Inte
rest
inco
me
102,
149
59
,872
2,70
9
1,
235
29
28
-
-
104,
887
61
,135
Depr
eciat
ion
and
amor
tizat
ion
4,35
5,64
9
3,
811,
622
1,60
3,52
8
1,
537,
420
40,5
35
41
,647
(8,9
39)
(8,9
96)
5,99
0,77
3
5,
381,
693
Oth
er n
on-m
onet
ary
item
s:
- Im
pairm
ent l
osse
s on
inve
ntor
ies
8,86
7
11
3,49
7
84,5
74
56
,960
-
-
-
-
93,4
41
17
0,45
7
- Im
pairm
ent l
osse
s on
pla
nts
and
36,6
23
24
,126
-
-
-
-
-
-
36,6
23
24
,126
e
quip
men
t
Cons
olid
ated
(in th
ousa
nd B
aht)
Inte
grat
ed P
acka
ging
Inte
rseg
men
t
Chain
Fibro
us C
hain
Oth
erEl
imin
atio
n
1312019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Geographical segment
The Group has expanded its investment and operating in foreign countries. All significant revenue from sales
and non-current assets based on geography is presented in this information. Segment revenue is based on
the geographical location of customers and segment non-current assets are based on the geographical
location of the assets.
Geographical segment information
Revenue from sales Non-current assets
2019 2018 2019 2018
(in thousand Baht)
Thailand 50,800,749 53,239,701 55,042,618 50,809,531
Vietnam 10,543,127 12,588,791 6,618,906 7,157,397
Indonesia 8,594,958 2,248,781 36,821,744 897,276
Philippines 3,447,985 4,532,188 1,899,849 1,166,116
Others 15,683,048 14,645,408 1,094,148 1,131,454
Total 89,069,867 87,254,869 101,477,265 61,161,774
Major customer
The Group has no revenue from one customer for the amount over 10% of the Group’s total revenue from
sales for 2019 and 2018.
Annual Report 2019 SCG Packaging Public Company Limited132
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
24 Distribution costs
2019 2018
(in thousand Baht)
Freight and commission expenses 3,090,286 3,128,160
Salary, welfare and employee expenses 797,842 844,527
Custom, insurance expense and intellectual properties fees 334,694 354,057
Sales promotion and advertising expenses 223,947 277,663
Rent, depreciation and amortization 94,034 120,058
Others 259,804 240,185
Total 4,800,607 4,964,650
25 Administrative expenses
2019 2018
(in thousand Baht)
Salary, welfare and employee expenses 2,451,551 2,535,031
Professional and consultant fees 577,981 536,498
Service expenses 344,270 336,352
IT fees 298,308 278,274
Rent, depreciation and amortization 281,932 253,700
Loss from decline in value of inventory - 185,720
Idle costs 68,287 65,111
Others 403,035 392,140
Total 4,425,364 4,582,826
1332019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
26 Employee benefit expenses
2019 2018
(in thousand Baht)
Salaries and wages 7,811,125 7,235,438
Contribution to defined contribution plans 449,068 420,226
Contribution to defined benefit plans 818,601 152,149
Early retirement expenses 23,705 85,590
Others 922,963 780,059
Total 10,025,462 8,673,462
The Group has provident fund plans to provide retirement and gratuity benefits to employees upon
resignation at 5% to 10% of the employee’s salaries, depending on the length of employment.
The defined contribution plans comprise provident funds established by the Group for its employees
in addition to the above provident fund. The provident funds were registered with the Ministry of Finance
under the Provident Fund Act B.E. 2530. Membership to the funds is on a voluntary basis. Contributions are
made monthly by the employees at 2% to 15% of their basic salaries and by the Company at 5% to 13%
of the members’ basic salaries, depending on the length of employment.
27 Income tax
Income tax recognized in profit or loss
Note 2019 2018
(in thousand Baht)
Current tax
Current tax expense 1,383,451 1,233,316
Under (over) provided in prior years (11,211) 10,485
1,372,240 1,243,801
Deferred tax
Movements in temporary differences 15 (323,192) 23,721
Total 1,049,048 1,267,522
Annual Report 2019 SCG Packaging Public Company Limited134
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Income tax recognized in other comprehensive income
2019 2018
(in thousand Baht)
Actuarial losses (38,683) (66,578)
Reconciliation of effective tax rate
For the years ended 31 December 2019 and 2018, the Group’s effective tax rate is not equal to the statutory
tax rate of 20% under the Revenue Code because income tax expense is calculated from accounting profit
adjusted by non-deductible expenses, deducted income or expense exemption under the Revenue Code
and utilized the tax losses carried forward from prior years and also had the exempted net profit from the
promoted business.
2019 2018
Rate
(%)
(in thousand
Baht)
Rate
(%)
(in thousand
Baht)
Profit before income tax 6,940,308 8,093,822
Share of loss (profit) of associates (52,728) 14,603
6,887,580 8,108,425
Income tax using the Thai corporation tax rate 20 1,377,516 20 1,621,685
Tax rates in foreign jurisdictions 64,825 73,756
Income not subject to tax (44,567) (5,684)
Tax privileges (408,357) (456,352)
Expenses deductible at a greater amount (55,233) (57,301)
Expenses not deductible for tax purposes and others 182,192 46,302
Prior year revenue subject to tax in current year - 34,638
Tax losses increase (decrease) 267,075 (23,728)
Current tax expense 1,383,451 1,233,316
Under (over) provided in prior years (11,211) 10,485
Movement in temporary differences (323,192) 23,721
Income tax expense 15 1,049,048 16 1,267,522
1352019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
28 Promotional privileges
By virtue of the provisions of the Investment Promotion Act of B.E. 2520, the Group was granted the following
privileges.
50% Deduction
Exemption from of normal
corporate income corporate income
tax for 8 years from tax for 5 years from
Thai Containers Rayong Co., Ltd.
Manufacture of corrugated paper and cartons 4 January 2009 4 January 2017
Visy Packaging (Thailand) Limited
Manufacture of plastics sheet and plastics product 23 September 2009 23 September 2017
Manufacture of plastic containers 18 July 2013 18 July 2021
Manufacture of plastic containers 4 July 2014 4 July 2022
Manufacture of plastic containers 29 August 2015 29 August 2023
Manufacture of plastics sheet and plastics product 6 July 2017 6 July 2025
50% Deduction
of normal
corporate income
tax for 3 years from
Thai Containers Group Co., Ltd.
Alternative energy (Chonburi) 4 September 2018
Alternative energy (Prachinburi) 4 September 2018
Thai Containers Khonkaen Co., Ltd.
Alternative energy 21 August 2019
Annual Report 2019 SCG Packaging Public Company Limited136
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Exemption from
corporate income
tax for 8 years from
Phoenix Utilities Co., Ltd.
Manufacture of electricity and steam 1 April 2011
The Siam Forestry Co., Ltd.
Eucalyptus forest plantation 19 June 2013
Siam Kraft Industry Co., Ltd.
Manufacture of kraft paper 17 March 2011
Manufacture of kraft paper 21 September 2011
Manufacture of kraft paper 15 December 2012
Thai Cane Paper Public Company Limited
Manufacture of kraft paper 21 May 2013
Manufacture of kraft paper 21 February 2014
SCG Paper Energy Co., Ltd.
Power management 1 November 2017
Electricity production 19 October 2018
Electricity production 1 June 2019
Thai Containers Group Co., Ltd.
Manufacture of corrugated paper 3 October 2011
Manufacture of corrugated paper 1 October 2012
Manufacture of corrugated paper 9 June 2017
Precision Print Co., Ltd.
Manufacture of printing 10 August 2015
1372019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Exemption from
corporate income
tax for 6 years from
Thai Paper Co., Ltd.
Manufacture of coated plastic - Hygienic 29 July 2012
Exemption from
corporate income
tax for 5 years from
Thai Paper Co., Ltd.
Manufacture of glassine paper 11 April 2017
Prepack Thailand Co., Ltd.
Manufacture of printing 7 March 2016
Exemption from
corporate income
tax for 3 years from
Phoenix Pulp & Paper Public Company Limited
Manufacture of dissolving pulp 10 February 2015
Manufacture of Pulp 22 July 2017
Manufacture of hygienic food packaging 22 March 2018
Thai Paper Co., Ltd.
Manufacture of Pulp 17 February 2016
Manufacture of hygienic food packaging 3 November 2016
Manufacture of hygienic food packaging 2 March 2018
Annual Report 2019 SCG Packaging Public Company Limited138
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Exemption from
corporate income
tax for 3 years from
Siam Kraft Industry Co., Ltd.
Manufacture of gypsum paper 21 May 2015
Manufacture of industrial paper bag 22 September 2015 Vina Kraft Paper Co., Ltd. also obtained privileges from a government agency in Vietnam to pay income tax
at a reduced rate of 15% of taxable profits for the first 12 years starting from the first year of operation, and
exemption from corporate income tax for 3 years from the year that profit is first reported and 50%
deduction of the said corporate income tax for 7 years thereafter. Vina Kraft Paper Co., Ltd. also obtained privileges from a government agency in Vietnam for Expanding capacity project
No.2 to pay income tax at a reduced rate of 10% of taxable profits for the first 6 years starting from the first year of
operation, and exemption from corporate income tax for 2 years from the year that profit is first reported.
New Asia Industries Co., Ltd. also obtained privileges from a government agency in Vietnam to pay income
tax at a reduced rate of 15% of taxable profits until 2021.
Alcamax Packaging (Vietnam) Co., Ltd. also obtained privileges from a government agency in Vietnam to pay
income tax at a reduced rate of 15% of taxable profits until 2027.
AP Packaging (Hanoi) Co., Ltd. also obtained privileges from a government agency in to pay income tax at
a reduced rate of 10% of taxable profits until 2052.
As promoted companies, the Group must comply with certain conditions and restrictions provided
for in the promotional certificates.
1392019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
29 Basic earnings per share
The calculations of basic earnings per share for the years ended 31 December was based on the profit for
the years attributable to owners of the parent and the weighted average number of ordinary shares
outstanding during the years, after adjusting the number of ordinary shares in proportion to the change in
the number of shares as a result of the stock split and distribution of stock dividend disclosed in note 21
and 30. The number of ordinary shares used in the calculation are adjusted as if such change had occurred
at the beginning of the earliest reporting period as follows:
2019 2018
(in thousand Baht / thousand shares) Profit for the year attributable to ordinary shareholders
of the Company 5,268,511 6,065,539
Weighted average number of ordinary shares outstanding
at 1 January 156,300 156,300
Effect of reduction in par value 1,406,700 1,406,700 Effect of stock dividend 1,563,000 1,563,000
Weighted average number of ordinary shares outstanding
at 31 December 3,126,000 3,126,000
Basic earnings per share (in Baht) 1.69 1.94
30 Dividends The dividends paid by the Company to the shareholders are as follows:
Approval date Payment schedule
Dividend rate
per share Amount (Baht) (in million Baht)
2019
Annual dividend 2018 26 March 2019 25 April 2019 10.00 1,563 Interim dividend 25 November 2019 6 December 2019 1.11111111 1,737
Total 11.11111111 3,300
2018
Annual dividend 2017 23 March 2018 20 April 2018 50.00 7,815
Annual Report 2019 SCG Packaging Public Company Limited140
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
On 25 November 2019, at the extraordinary general meeting of shareholders of the Company, they passed
resolution to approve the interim dividend payment, details are as follows;
1. Pay dividend by ordinary shares of 1,563,000,000 shares at par value of Baht 1 per share, in the ratio
of 1 current share per 1 dividend share.
2. Pay dividend by cash at Baht 0.11111111 per share, totaling Baht 174 million.
31 Agreements As at 31 December, the Group had:
(a) Lease agreements for cars with local companies. The terms of the leases are up to 2020 through 2024
with the annual rental fees of Baht 115 million.
(b) Lease agreements for land, building, structure and others with local companies. The terms of the
leases are up to 2020 through 2037 with the annual rental fees of Baht 229 million.
(c) A subsidiary entered into a lease agreement with a government entity for the use of a parcel of land
situated at Ubolrat Settlement Area, Khon Kaen Province as its plant site. The agreement is for
a period of 3 years (with annual rental of Baht 7 million).
(d) A subsidiary entered into a lease agreement with an associate covering the land where its
factory is located. The agreement has a period of 50 years commencing from 2003, renewal for
another 25 years with the annual rental fee of Peso 19.2 million.
(e) Land leasehold agreement with a foreign company as its plant site. The agreement has a period of
50 years commencing from January 2007. The Company already paid rental in advance amounting to
US Dollars 4.8 million which present included under “Other non-current receivables” in the statement
of financial position.
(f) A subsidiary entered into a lease agreement with a foreign company covering the land where its
factory is located. The agreement has a period of 25 years commencing from December 1996. The
Company already paid rental in advance amounting to US Dollars 1.2 million which present included
under “Other non-current receivables” in the statement of financial position.
1412019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
(g) Three subsidiaries entered into lease agreements with foreign companies covering the land where
their factories are located. Agreements have a period of 49 years commencing from April 1997. The
Company already paid rental in advance amounting to US Dollars 2.6 million which present included
under “Other non-current receivables” in the statement of financial position.
(h) A subsidiary entered into lease agreements with foreign companies covering the land where its factory
is located. Agreements have a remaining period of 37 years expiring in the year 2053. The Company
already paid rental in advance amounting to Vietnamese Dong 40,241 million which present included
under “Other non-current receivables” in the statement of financial position.
(i) A subsidiary has entered into a lease agreement with foreign company covering the land where its
factory is located. The agreement has a period of 6 years commencing from 2019, renewal for another
3 years with the annual rental fee of Malaysian Ringgit 2.28 million.
(j) A subsidiary has entered into agreements with a foreign company for the delivery and loading of
Woodchips to Vessel. As at 31 December 2019, the subsidiary is committed to sell and deliver the
Woodchips in volume equivalent to approximately 48,000 BDMT per year. The agreement period is
for 12 years with the commencement date in December 2034.
(k) A subsidiary has entered into agreements with a local company for provide Biofuel to delivery point.
As at 31 December 2019, the subsidiary is committed to sell and deliver the Biofuel in volume
equivalent to approximately 73,000 tons per year. The agreement period is for 25 years with the
commencement date in August 2037.
32 Financial instruments
Liquidity risk
The Group monitors its liquidity risk and maintains a level of cash and cash equivalents deemed adequate
to finance the Group’s operations and to mitigate the effects of fluctuations in cash flows.
Annual Report 2019 SCG Packaging Public Company Limited142
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Credit risk
Credit risk arises from the possibility that customers may not be able to settle obligations to the Group as
per contracts which may cause financial loss. The Group has a policy to protect this risk by assessing the
credit of customers, defining the credit limit, asking for bank guarantees and/or personnel guarantees, credit
terms, controlling credit utilization and reviewing collections. Fair value of receivables which are presented
in the statement of financial position is the balances net of allowance for doubtful accounts.
Interest rate risk
Interest rate risk arises from the changing of interest rates in the market, which may effect current and future
operations of the Group. Management believes that the interest rate risk is minimal, hence, the Group does
not have any hedging agreement to protect such risk.
The effective interest rates of loans receivable as at 31 December and the periods in which the loans
receivables mature were as follows:
Loans receivable
After 1 year
Effective interest
rates
Within
1 year
but within
5 years
After
5 years
Total
(% per annum) (in million Baht)
2019
Current
Short-term loans 3.50 - 4.30 5 - - 5
2018
Current
Short-term loans 3.80 - 4.80 127 - - 127
Long-term loans 3.40 93 - - 93
Total 220 - - 220
1432019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
The effective interest rates of interest-bearing financial liabilities as at 31 December and the periods in which
those liabilities mature were as follows:
Financial liabilities
After 1 year Effective interest
rates Within 1 year
but within 5 years
After 5 years
Total
(% per annum) (in million Baht) 2019 Current Bank overdraft and MMR, MLR minus 0.50, short-term borrowings Cost of fund plus
from financial institutions
(0.50 - 2.00), LIBOR plus (1.25 - 3.00),
1.28 - 9.50 7,132 - - 7,132 Short-term borrowings from related parties 3.50 - 8.70 33,827 - - 33,827 Long-term borrowings MLR minus 2.75, from related parties Cost of fund plus
(0.65 - 0.67)
LIBOR 3-6 months plus (1.20 - 3.75), VNIBOR plus 0.50, JIBOR plus 4.40,
4.35 - 10.90 2,184 - - 2,184
Finance lease liabilities 3.78, 7.00, 10.25 - 15.00, 21.60 88 - - 88
Non-current Long-term borrowings MLR minus 2.75, from financial
institutions Cost of fund plus
(0.65 - 3.78), LIBOR 3-6 months
plus (1.20 - 3.75), VNIBOR plus 0.50 JIBOR plus 4.40,
1.75 - 10.90
-
15,597
721
16,318 Finance lease liabilities 3.78, 7.00, 10.25 - 15.00, 21.60 - 35 - 35 Total 43,231 15,632 721 59,584
Annual Report 2019 SCG Packaging Public Company Limited144
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
After 1 year
Effective interest rate
Within 1 year
but within 5 years
After 5 years
Total
(% per annum) (in million Baht) 2018 Current Bank overdrafts and MMR, MOR minus 1.75, short-term borrowings Cost of fund plus from financial
institutions (0.50 - 0.75), 1.58 - 5.70
4,312
-
-
4,312
Short-term borrowings 3.75 23,416 - - 23,416 from related parties Long-term borrowings MLR minus from financial (0.50 - 2.35), institutions Cost of fund plus 0.75, VNIBOR plus 0.50, 3.65 152 - - 152 Finance lease liabilities 1.04 - 3.78, 6.10, 21.60 14 - - 14 Non-current Long-term borrowings MLR minus from financial (0.50 - 2.35), institutions Cost of fund plus (0.65 - 1.75), VNIBOR plus 0.50, 3.65 - 528 59 587 Finance lease liabilities 1.04 - 3.78, 6.10, 21.60 - 15 - 15 Total 27,894 543 59 28,496
Foreign exchange risk
Foreign currency risk arises from the fluctuation of foreign exchange rates.
The Group has a policy to enter into forward exchange contracts to manage foreign exchange risk related
to assets and liabilities denominated in foreign currencies.
1452019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Fair values of financial assets and liabilities
The fair value of current portion of financial assets and liabilities are taken to approximate the carrying value
due to the relatively short-term maturity of these financial instruments.
The fair value of long-term borrowings carrying a floating rate, which is considered to be market rate, are
taken to approximate their fair values.
Other financial assets and liabilities not stated above had the fair and carrying value at 31 December as
follows:
2019 2018
Carrying Fair value Carrying Fair value
amount Level 2 amount Level 2
(in million Baht)
Current
Long-term borrowings 12,041 12,041 - -
Forward exchange contracts*
Forward receivable 1,759 1,748 827 818
Forward payable 1,788 1,755 1,070 1,059
* The fair value of forward exchange contracts were calculated using the rates initially quoted by the
Group’s bankers which were based on market conditions existing at the end of the reporting period to
reflect current fair values of the contracts.
The Group determines Level 2 fair values for debt securities using a discounted cash flow technique, which
uses contractual cash flows and a market-related discount rate.
Level 2 fair values for simple over-the-counter derivative financial instruments are based on broker quotes.
Those quotes are tested for reasonableness by discounting expected future cash flows using market interest
rate for a similar instrument at the measurement date. Fair values reflect the credit risk of the instrument
and include adjustments to take account of the credit risk of the Group and counterparty when appropriate.
Annual Report 2019 SCG Packaging Public Company Limited146
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
33 Commitments and contingent liabilities
As at 31 December 2019, the Group had:
(a) The purchase and installation of machinery and equipment of Baht 4,571 million (2018: Baht
1,873 million).
(b) The purchase of raw material of Baht 648 million (2018: Baht 35 million).
(c) Outstanding forward exchange contracts for foreign currencies against Thai Baht as follows:
Contract amount
Forward Receivable Forward Payable
Currency Equivalent to Baht Currency Equivalent to Baht
2019 2018 2019 2018 2019 2018 2019 2018
(in million) (in million Baht) (in million) (in million Baht)
US Dollars 57 25 1,715 822 47 24 1,458 769
Yen 93 - 27 - 299 23 85 7
Yuan 3 - 13 - - - 1 -
Euro - - 1 - 7 8 241 293
Other 3 5 3 1
Total 1,759 827 1,788 1,070
The above contracts are due within November 2020 (2018: due within December 2019).
(d) Contingent liability for letter of guarantees issued by local banks for the Group to government
organizations of Baht 85 million (2018: Baht 67 million).
(e) Contingent liability for borrowings guarantees issued by a local bank for the Group to associate which
limit is not exceed Baht 264 million (2018: Baht 330 million).
1472019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
34 Capital management
The management of the Group has the capital management policy to maintain a strong capital base by
emphasis on planning and determining the operating strategies resulting in good business’s performance
and sustained good cash flows management. In addition, the Group considers investing in projects which
have good rate of return, appropriate working capital management, maintain a strong financial position and
appropriate investment structure as to maintain sustained future operations of the business and to maintain
shareholders, investors, creditors and others interest’s confidence.
35 Others
On 26 October 2019, The Board of Directors’ Meeting No. 214 (10/2019) has approved the plan to issue and
offer newly issued ordinary shares in the Company as an initial public offering (IPO) and to list the ordinary
shares in the Company on the Stock Exchange of Thailand. The portion of the shares to be offered for sale
in the IPO will not exceed 30% of the Company’s paid-up capital after its capital increase.
On 17 December 2019, the Company submitted to Thai SEC a registration statement and draft prospectus
for the IPO. In connection with the IPO, the Company will issue and offer no more than 1,374,000,000
ordinary shares with a par value of 1 Thai Baht per share.
36 Events after the reporting period
(a) At the Board of Directors’ Meeting of the Company held on 28 January 2020, the directors proposed
for approval at the Annual General Meeting of Shareholders, the payment of a dividend for 2019 at the
rate of Baht 0.42 per share, amounting to Baht 1,313 million and is scheduled for payment on 23 April
2020. The dividend is subject to the approval of the Shareholders at the Annual General Meeting to be
held on 24 March 2020.
(b) On 31 January 2020 United Pulp and Paper Co., Inc. (“UPPC”), a subsidiary has entered into a conditional
share subscription agreement with Rengo Co., Ltd. whereby Rengo will subscribe to the newly issued
shares at the total value of approximately Baht 2,500 million. The Group’s investment in UPPC will
decrease from 99.7% to 74.7%, UPPC will remain consolidated subsidiary of the Group. The transaction
is expected to be completed in the second quarter of 2020.
Annual Report 2019 SCG Packaging Public Company Limited148
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
37 Thai Financial Reporting Standards (TFRSs) that have been issued but are not yet effective
The new and revised TFRSs, which are relevant to the Group’s operations, become effective for the financial
statements in annual reporting periods beginning on or after 1 January 2020. The Group does not adopt
these TFRSs early. The new TFRSs are as follows:
TFRS Topic
TFRS 7* Financial Instruments: Disclosures
TFRS 9* Financial Instruments
TFRS 16 Leases
TAS 32* Financial Instruments: Presentation
TFRIC 16* Hedges of a Net Investment in a Foreign Operation
TFRIC 19* Extinguishing Financial Liabilities with Equity Instruments
* TFRSs - Financial instruments standards
(a) TFRSs - Financial instruments standards
These TFRSs - Financial instruments standards establish requirements related to definition, recognition,
measurement, impairment and derecognition of financial assets and financial liabilities, including
accounting for derivatives and hedge accounting. When these TFRSs are effective, some accounting
standards, interpretations and guidance which are currently effective will be cancelled. The impact
from adoption of TFRSs - Financial instruments depends on the Group’s financial instruments by
following TFRSs - Financial instruments as follows:
(1) Classification - Financial assets
TFRS 9 classifies financial assets into three categories: measured at amortized cost, fair value
to other comprehensive income (FVOCI) and fair value to profit or loss (FVTPL). The standard
eliminates the existing classification of held-to-maturity debt securities, available-for-sale securities,
trading securities and general investment as specified by TAS 105. The classification under TFRS 9
will be based on the cash flow characteristics of the financial asset and the business model in
which they are managed. Under TFRS 9, derivatives will be measured at FVTPL. It shall replace
1492019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
current accounting policies of the Group on recognition of revaluation exchange rate at the end
of period or when the derivatives were exercised.
The Group made an assessment of classification - Financial assets under TFRS 9. This adoption has
no material effect on the consolidated financial statements of the Group.
(2) Measurement at amortized cost
Under TFRS 9, interest income and interest expenses recognized from all financial assets and financial
liabilities measured at amortized cost shall be calculated using effective interest rate method. The
adoption of TFRS 9 has no material effect on the consolidated financial statements of the Group.
(3) Impairment - Financial assets
TFRS 9 introduces forward-looking Expected Credit Loss (“ECL”) model whereas currently the
Group estimates allowance for doubtful account by analyzing payment histories and future
expectation of customer payment. TFRS 9 requires consideration about how changes in economic
factors affect ECLs, which is determined on a probability-weighted basis.
The new impairment model will apply to financial assets measured at amortized cost or FVOCI,
except for investments in equity instruments.
The Group made an assessment of the impairment of financial assets under TFRS 9. This adoption
has no material effect on the consolidated financial statements of the Group.
(4) Classification - Financial liabilities
TFRS 9 introduces a new classification and measurement approach for financial liabilities consisting
of two principal classification categories: amortized cost and FVTPL. A financial liability is classified as
financial liabilities measured at FVTPL if it is held for trading, a derivative or designated as such on
the initial recognition.
Annual Report 2019 SCG Packaging Public Company Limited150
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
The Group classified other financial liabilities which are not held for trading or derivative measured
at amortized cost. The adoption of TFRS 9 has no material effect on the group’s consolidated
financial statements.
(5) Hedge accounting
TFRS 9 introduces guidance on hedge accounting while current TFRSs are silent. There are three
hedge accounting models and the type of model applied depends on the hedged exposures
consisting of a fair value exposure, a cash flow exposure or a foreign currency exposure on a net
investment in a foreign operation. Under TFRS 9, the Group is required to ensure that hedge
accounting relationships are aligned with the Group’s risk management objectives and strategy and to
apply a more qualitative and forward-looking approach to assess hedge effectiveness. Accordingly,
TFRS 9 provides an option to apply hedge accounting when the transactions are qualified. At the
initial date of the first time adoption, the Group has no effect on this matter.
Transition
The Group applied these TFRSs for the first time by adjusting the cumulative impact to retained
earnings on 1 January 2020 with no restatement of comparative information.
(b) TFRS 16 Leases
TFRS 16 introduces a single lessee accounting model for lessees. A lessee recognizes a right-of-use asset
and a lease liability. There are recognition exemptions for short-term leases and leases of low-value
items. Lessor accounting remains to the current standard. When this TFRS is effective, some accounting
standards and interpretations which are currently effective will be cancelled. Currently, the Group
recognizes payments made under operating leases in income statement on a straight-line basis over
the term of the lease.
The Group made an assessment of TFRS 16 adoption. On 1 January 2020, the Group recognized the
increase in right-of-use assets approximately Baht 1,900 million while the prepaid rental expenses
decrease approximately Baht 500 million and affect to increase in lease liabilities approximately Baht
1,400 million. The nature of expenses related to those leases will change as the Group will recognize
depreciation of right-of-use assets and interest expenses on lease liabilities.
1512019 Consolidated Financial Statements of SCG Packaging Public Company Limited and its Subsidiaries
Notes to the financial statements SCG Packaging Public Company Limited and its Subsidiaries
For the year ended 31 December 2019 and 2018
Transition
The Group applied TFRS 16 for the first time on 1 January 2020 using the modified retrospective
approach, by recognizing right-of-use assets and lease liabilities with no restatement of comparative
information.
Annual Report 2019 SCG Packaging Public Company Limited152
2019 Financial Statements of SCG Packaging Public Company Limited
Independent auditor’s report
To the Shareholders of SCG Packaging Public Company Limited
Opinion
I have audited the financial statements of SCG Packaging Public Company Limited (the “Company”), which
comprise the statement of financial position as at 31 December 2019 and 2018, the income statement and
statements of comprehensive income, changes in shareholders’ equity and cash flows for the years then ended,
and notes, comprising a summary of significant accounting policies and other explanatory information.
In my opinion, the accompanying financial statements present fairly, in all material respects, the financial position
of the Company as at 31 December 2019 and 2018, its financial performance and cash flows for the year then
ended in accordance with Thai Financial Reporting Standards (TFRSs).
Basis for Opinion
I conducted my audit in accordance with Thai Standards on Auditing (TSAs). My responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section
of my report. I am independent of the Company in accordance with the Code of Ethics for Professional Accountants
issued by the Federation of Accounting Professions that is relevant to my audit of the financial statements, and
I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit
evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Other Information
Management is responsible for the other information. The other information comprises the information included
in the annual report, but does not include the financial statements and my auditor’s report thereon.
My opinion on the financial statements does not cover the other information and I do not express any form
of assurance conclusion thereon.
In connection with my audit of the financial statements, my responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial statements or my
knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have
performed, I conclude that there is a material misstatement of this other information, I am required to report that
fact. I have nothing to report in this regard.
Annual Report 2019 SCG Packaging Public Company Limited154
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
TFRSs, and for such internal control as management determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with TSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with TSAs, I exercise professional judgment and maintain professional skepticism
throughout the audit. I also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Company’s internal control.
155
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Company’s ability to continue as a going concern. If I conclude that a material
uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based
on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
I communicate with those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that I identify
during my audit.
I also provide those charged with governance with a statement that I have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on my independence, and where applicable, related safeguards.
(Thanyalux Keadkeaw)
Certified Public Accountant
Registration No. 8179
KPMG Phoomchai Audit Ltd.
Bangkok
18 February 2020
Annual Report 2019 SCG Packaging Public Company Limited156
Statement of financial position
SCG Packaging Public Company Limited
31 December
Assets Note 2019 2018
Current assets
Cash and cash equivalents 8,580 5,673
Other current receivables 4, 5 254,306 193,394
Short-term loans to related parties 4, 23 33,950,895 17,862,997
Other current assets 125,649 22,142
Total current assets 34,339,430 18,084,206
Non-current assets
Investments in associates 6 350,121 350,121
Investments in subsidiaries 7 34,447,438 28,398,365
Other non-current receivables 14,110 11,555 Investment property 8 297,733 299,572
Property, plant and equipment 9 213,341 225,595
Intangible assets 10 30,623 30,107
Deferred tax asset 11 59,099 34,602
Other non-current assets 29,038 44,608
Total non-current assets 35,441,503 29,394,525
Total assets 69,780,933 47,478,731
(Mr. Prasarn Trairatvorakul)
Chairman
(in thousand Baht)
For and on behalf of the Board of Directors
(Mr. Wichan Jitpukdee)
Chief Executive Officer
The accompanying notes are an integral part of these financial statements.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Company’s ability to continue as a going concern. If I conclude that a material
uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based
on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
I communicate with those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that I identify
during my audit.
I also provide those charged with governance with a statement that I have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on my independence, and where applicable, related safeguards.
(Thanyalux Keadkeaw)
Certified Public Accountant
Registration No. 8179
KPMG Phoomchai Audit Ltd.
Bangkok
18 February 2020
1572019 Financial Statements of SCG Packaging Public Company Limited
Statement of financial position
SCG Packaging Public Company Limited
31 December
Liabilities and shareholders’ equity Note 2019 2018
Current liabilities
Other current payables 4, 12 249,573 139,425
Short-term borrowings from related parties 4, 23 33,907,033 23,343,402
Current provisions for employee benefits 17,009 13,439
Total current liabilities 34,173,615 23,496,266
Non-current liabilities
Long-term borrowings from financial institutes 13, 23 12,000,000 -
Non-current provisions for employee benefits 14 295,507 159,578
Other non-current liabilities 10,587 8,021
Total non-current liabilities 12,306,094 167,599
Total liabilities 46,479,709 23,663,865
(in thousand Baht)
The accompanying notes are an integral part of these financial statements.
Annual Report 2019 SCG Packaging Public Company Limited158
Statement of financial position
SCG Packaging Public Company Limited
31 December
Liabilities and shareholders’ equity Note 2019 2018
Shareholders’ equity
Share capital 15
Authorized share capital
- Ordinary share 4,500,000 1,563,000
Issued and paid share capital
- Ordinary share 3,126,000 1,563,000
Share premium 16 1,935,000 1,935,000
Retained earnings
Appropriated
Legal reserve 16 218,600 156,300
General reserve 3,000 3,000
Unappropriated 18,018,624 20,157,566
Total shareholders’ equity 23,301,224 23,814,866
Total liabilities and shareholders’ equity 69,780,933 47,478,731
(in thousand Baht)
The accompanying notes are an integral part of these financial statements.
1592019 Financial Statements of SCG Packaging Public Company Limited
Income statement
SCG Packaging Public Company Limited
Year ended 31 December
Note 2019 2018
Dividend income 4, 6, 7 1,566,377 7,824,862
Service income 4, 27 1,532,035 1,462,451
Other income 4, 27 55,197 228,149
Gain on exchange rate 504 329
Total revenues before expenses 3,154,113 9,515,791
Administrative expenses 4, 17 (1,580,778) (1,374,205)
Employee benefit expense from the amended severance pay of the Labor Law 14, 18 (50,795) -
Total expenses (1,631,573) (1,374,205)
Profit before finance costs and income tax 1,522,540 8,141,586
Finance costs 4 (299,440) (195,404)
Profit before income tax 1,223,100 7,946,182
Tax income (expenses) 19 22,548 (21,188)
Profit for the year 1,245,648 7,924,994
Basic earnings per share (in Baht) 20 0.40 2.54
(in thousand Baht)
The accompanying notes are an integral part of these financial statements.
Annual Report 2019 SCG Packaging Public Company Limited160
Statement of comprehensive income
SCG Packaging Public Company Limited
Year ended 31 December
Note 2019 2018
Profit for the year 1,245,648 7,924,994
Other comprehensive income
Components of other comprehensive income
that will not be reclassified to profit or loss
Defined benefit plan actuarial losses 14 (28,246) (80,963)Income tax relating to components of other comprehensive income that will not be reclassified to profit or loss 19 5,623 16,193 Other comprehensive income for the year, net of tax (22,623) (64,770)
Total comprehensive income for the year 1,223,025 7,860,224
(in thousand Baht)
The accompanying notes are an integral part of these financial statements.
1612019 Financial Statements of SCG Packaging Public Company Limited
Sta
tem
en
t o
f ch
an
ge
s in
sh
are
ho
lde
rs' e
qu
ity
SC
G P
acka
gin
g P
ub
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om
pan
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imit
ed
Issue
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Unap
propri
ated
Total
pa
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gal
Gene
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sha
re ca
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Share
prem
ium re
serve
res
erve
equit
y
Year
end
ed 3
1 De
cem
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018
Bala
nce
at 1
Jan
uary
201
81,
563,
000
1,93
5,00
0
15
6,30
0
3,
000
20
,112
,342
23
,769
,642
Tran
sact
ions
with
ow
ners
,
re
cord
ed d
irect
ly in
sha
reho
lder
s' eq
uity
Div
idend
s21
-
-
-
-
(7,81
5,000
)
(7,
815,0
00)
Tota
l tra
nsac
tions
with
ow
ners
,
re
cord
ed d
irect
ly in
sha
reho
lder
s' eq
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-
-
-
-
(7
,815
,000
)
(7
,815
,000
)
Com
preh
ensiv
e in
com
e fo
r the
yea
r
Pro
fit or
loss
-
-
-
-
7,924
,994
7,924
,994
Ot
her c
ompre
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come
-
-
-
-
(64,77
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Tota
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e in
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-
-
-
7,86
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4
7,
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Bala
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1,56
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Reta
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Appr
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(in th
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The
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mpan
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otes
are a
n int
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part
of th
ese f
inanc
ial st
ateme
nts.
Annual Report 2019 SCG Packaging Public Company Limited162
Sta
tem
en
t o
f ch
an
ge
s in
sh
are
ho
lde
rs' e
qu
ity
SC
G P
acka
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om
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Issue
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Unap
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Total
pa
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Gene
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Note
sha
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Share
prem
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res
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equit
y
Year
end
ed 3
1 De
cem
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019
Bala
nce
at 1
Jan
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201
91,
563,
000
1,93
5,00
0
15
6,30
0
3,
000
20
,157
,566
23
,814
,866
Tran
sact
ions
with
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,
re
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irect
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sha
reho
lder
s' eq
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Tra
nsfer
to le
gal r
eserv
e-
-
62
,300
-
(62
,300)
-
Stock
divid
ends
15, 2
11,5
63,00
0
-
-
-
(1,
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-
Div
idend
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-
-
-
-
(1,73
6,667
)
(1,
736,6
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Tota
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,
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sha
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1,56
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-
62
,300
-
(3,3
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(1,7
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67)
Com
preh
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e in
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Pro
fit or
loss
-
-
-
-
1,245
,648
1,245
,648
Ot
her c
ompre
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ive in
come
-
-
-
-
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1632019 Financial Statements of SCG Packaging Public Company Limited
Statement of cash flows
SCG Packaging Public Company Limited
Year ended 31 December
2019 2018
Cash flows from operating activities
Profit for the year 1,245,648 7,924,994
Adjustments for
Tax expenses (income) (22,548) 21,188
Depreciation and amortization 40,533 41,646
Employee benefit expense 127,139 16,062
Bad and doubtful debts expenses 261 16,963
Unrealized losses (gains) on foreign currency exchange (1) 115
Gain on sales of investment - (173,185)
Losses (gains) on sales of property, plant and equipment (230) 26
Dividend income (1,566,377) (7,824,862)
Interest income (966,849) (582,567)
Interest expense 1,266,285 777,944 Cash flows generated from operations
before changes in operating assets and liabilities 123,861 218,324
Increase in operating assets
Other current receivables and other non-current receivables (50,703) (54,262)
Other current asset (71,800) -
Net increase in operating assets (122,503) (54,262)
(in thousand Baht)
The accompanying notes are an integral part of these financial statements.
Annual Report 2019 SCG Packaging Public Company Limited164
Statement of cash flows
SCG Packaging Public Company Limited
Year ended 31 December
Note 2019 2018
Increase (decrease) in operating liabilities
Other current payables 101,970 21,572
Provisions for employee benefits (23,860) (2,381)Other non-current liabilities 768 -
Net increase in operating liabilities 78,878 19,191
Net cash flows generated from operations 80,236 183,253
Income tax paid (11,100) (6,879)
Net cash flows provided by operating activities 69,136 176,374
Cash flows from investing activities
Investment in subsidiaries 7 (6,049,073) (1,324,099)
Proceeds from sales of property, plant and equipment 5,648 22
Acquisition of investment property - (64,261)
Acquisition of property, plant and equipment (23,866) (20,442)
Acquisition of intangible assets (11,827) (10,531)
Proceeds from sales of other investment - 257,309
Payments of short-term loans to related parties (16,087,898) (6,715,410)
Dividends received 1,566,377 7,824,862
Interest received 953,764 578,324
Net cash flows provided by (used in) investing activities (19,646,875) 525,774
(in thousand Baht)
The accompanying notes are an integral part of these financial statements.
1652019 Financial Statements of SCG Packaging Public Company Limited
Statement of cash flows
SCG Packaging Public Company Limited
Year ended 31 December
2019 2018
Cash flows from financing activities
Proceeds from short-term borrowings from related parties 10,563,631 7,884,785
Proceeds from long-term borrowings from financial institutes 12,000,000 -
Dividends paid (1,734,869) (7,815,147)
Interest paid (1,248,116) (770,816)
Net cash flows provided by (used in) financing activities 19,580,646 (701,178)
Net increase in cash and cash equivalents 2,907 970
Cash and cash equivalents at beginning of the year 5,673 4,703 Cash and cash equivalents at end of the year 8,580 5,673
Supplementary information for cash flows
Non-cash transactions
Account payables from purchases of assets 2,207 5,526
Stock dividends 1,563,000 -
(in thousand Baht)
The accompanying notes are an integral part of these financial statements.
Annual Report 2019 SCG Packaging Public Company Limited166
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
Note Contents
1 General information
2 Basis of preparation of the financial statements
3 Significant accounting policies
4 Related parties
5 Other current receivables
6 Investments in associates
7 Investments in subsidiaries
8 Investment property
9 Property, plant and equipment
10 Intangible assets
11 Deferred tax asset (deferred tax liability)
12 Other current payables
13 Borrowings from financial institutes
14 Non-current provisions for employee benefits
15 Share capital
16 Reserves
17 Administrative expenses
18 Employee benefit expenses
19 Income tax
20 Basic earnings per share
21 Dividends
22 Lease agreements
23 Financial instruments
24 Capital management
25 Others
26 Event after the reporting period
27 Reclassification of accounts
28 Thai Financial Reporting Standards (TFRSs) that have been issued but are not yet effective
1672019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
These notes form an integral part of the financial statements.
The financial statements issued for Thai statutory and regulatory reporting purposes are prepared in the Thai
and English languages, and were approved and authorized for issue by the audit committee, as appointed
by the Board of Directors of the Company, on 18 February 2020.
1 General information
SCG Packaging Public Company Limited, the “Company”, is incorporated in Thailand.
The head office of the Company is located at 1 Siam Cement Road, Bangsue, Bangkok 10800, Thailand.
The parent company is The Siam Cement Public Company Limited. It is incorporated in Thailand.
The Company is engaged in investment.
2 Basis of preparation of the financial statements
(a) Statement of compliance
The financial statements are prepared in accordance with Thai Financial Reporting Standards (“TFRSs”) guidelines
promulgated by the Federation of Accounting Professions.
The new and revised TFRSs are effective for annual accounting periods beginning on or after 1 January 2019.
The initial application of these new and revised TFRSs has resulted in no material impact on the
Company’s accounting policies, calculation method, financial performance and position.
The Company has initially applied TFRS 15 Revenue from Contracts with Customers (“TFRS 15”) since
1 January 2019. TFRS 15 establishes a comprehensive framework for determining how much and when
revenue is recognized. It replaced TAS 18 Revenue (“TAS 18”).
Under TFRS 15, the Company recognizes revenue when a customer obtains control of the goods or services
in an amount that reflects the consideration to which the Company expects to be entitled to.
Annual Report 2019 SCG Packaging Public Company Limited168
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
In addition, judgment is required in determining the timing of the transfer of control for revenue
recognition - at a point in time or over time. The Company has a timing of revenue recognition mainly from
intellectual property income, management fees for administration and service income which are recognized
over time.
In addition, the Company has not early adopted a number of new and revised TFRS which are not yet
effective for the current period in preparing these financial statements. Those new and revised TFRSs
that are relevant to the Company’s operations are disclosed in note 28.
(b) Basis of measurement
The financial statements have been prepared on the historical cost basis except for the following material
item in the statements of financial position: defined benefit obligations are measured at the present value of
non-current provisions for defined benefit plans.
(c) Functional and presentation currency
The financial statements are prepared and presented in Thai Baht, which is the Company’s functional
currency. All financial information presented in Thai Baht has been rounded in the notes to the financial
statements to the nearest thousand unless otherwise stated.
(d) Use of estimates and judgments
The preparation of financial statements in conformity with TFRSs requires management to make judgements,
estimates and assumptions that affect the application of the Company’s accounting policies. Actual results
may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized prospectively.
Information about significant areas of estimation uncertainty and critical assumptions in applying accounting
policies that have the most significant effect on the amount recognized in the financial statements is
included in the following notes:
1692019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
Note 5, 6, 7, 8, 9 and 10 Measurement of the recoverable amounts of each asset and cash-
generating units;
Note 11 and 19 Recognition of deferred tax assets: availability of future taxable
profit against which deductible temporary differences and tax losses
carried forward can be utilized; and
Note 14 Measurement of non-current provision for defined benefit plans:
- key actuarial assumptions.
Measurement of fair values
A number of the Company’s accounting policies and disclosures require the measurement of fair values, for
both financial and non-financial assets and liabilities.
The Company has an established framework with respect to the measurement of fair values. This includes
a valuation team that has overall responsibility for overseeing all significant fair value measurements,
including Level 3 fair values, and reports directly to the CFO.
The valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third party
information, such as broker quotes or pricing services, is used to measure fair values, then the valuation
team assesses the evidence obtained from the third parties to support the conclusion that these valuations
meet the requirements of TFRS, including the level in the fair value hierarchy in which these valuations
should be classified.
Significant valuation issues are reported to the Company’s Audit Committee.
When measuring the fair value of an asset or a liability, the Company uses observable market data as far as
possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used
in the valuation techniques as follows:
• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date.
• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).
• Level 3: inputs are unobservable inputs for the asset or liability.
Annual Report 2019 SCG Packaging Public Company Limited170
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
If the inputs used to measure the fair value of an asset or liability might be categorized in different levels of
the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of
the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting
period during which the change has occurred.
Further information about the assumptions made in measuring fair values is included in the following notes:
• Note 8 Investment property; and
• Note 23 Financial instruments.
3 Significant accounting policies
The accounting policies set out below have been consistently applied to all periods presented in these
financial statements.
(a) Foreign currencies
Foreign currency transactions
Transactions in foreign currencies are translated to functional currency at the foreign exchange rates at the
dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the end of the reporting period
are translated to the functional currencies at the exchange rates at that date. Foreign exchange differences
are recognized in profit or loss.
Non-monetary assets and liabilities which include arising from the payment or receipt of advance
consideration measured at cost in foreign currencies are translated to the functional currency at the
exchange rates at the dates of the transactions.
(b) Cash and cash equivalents
Cash and cash equivalents in the statements of cash flows comprise cash on hand, saving deposits, current
deposits and highly liquid short-term investments that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value.
1712019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
In addition, bank overdrafts that are repayable on demand are a component of financing activities for the
purpose of the statement of cash flows.
(c) Other receivables and contract assets
A receivable is recognized when the Company has an unconditional right to receive consideration. If revenue
has been recognised before the Company has an unconditional right to receive consideration, the amount
is presented as a contract asset.
A receivable and a contract asset are measured at value less allowance for doubtful accounts which
are assessed on analysis of payment histories and future expectations of customer payments. Bad debts
are written off when incurred.
(d) Investments
Investment in associates and subsidiaries
Investments in associates and subsidiaries in the financial statements are accounted for using the cost
method less any accumulated impairment losses.
Disposal of investments
On disposal of an investment, the difference between net disposal proceeds and the carrying amount
is recognized in profit or loss.
If the Company disposes of part of its holding of a particular investment, the deemed cost of the part sold
is determined using the weighted average method applied to the carrying amount of the total holding of
the investment.
(e) Investment property
Investment properties are properties which are held to earn rental income, for capital appreciation or for
both, but not for sale in the ordinary course of business, use in the production or supply of goods or services
or for administrative purposes.
Investment properties are measured at cost less accumulated depreciation and accumulated impairment losses.
Annual Report 2019 SCG Packaging Public Company Limited172
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
Cost includes expenditure that is directly attributable to the acquisition of the investment property.
The cost of self-constructed investment property includes the cost of materials and direct labor, and other
costs directly attributable to bringing the investment property to a working condition for its intended use
and capitalized borrowing costs of a qualifying asset.
Depreciation is charged to profit or loss on a straight-line basis over the estimated useful lives of each
property. The estimated useful lives are as follows:
Land improvements 20 years
Building and structures 5, 20 years
Reclassification to property, plant and equipment
When the use of an investment property changes such that it is reclassified as property, plant and
equipment, its carrying amount at the date of reclassification becomes its cost for subsequent accounting.
(f) Property, plant and equipment
Property, plant and equipment are measured at cost less accumulated depreciation and accumulated
impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of
self-constructed assets includes the cost of materials and direct labor, any other costs directly attributable
to bringing the asset to the location and condition necessary for it to be capable of operating for their
intended use, the costs of dismantling and removing the items and restoring the site on which they
are located, and capitalized borrowing costs of a qualifying asset. Licensed software that is integral to the
functionality of the related equipment is capitalized as part of that equipment.
When parts of an item of property, plant and equipment have different consumption patterns and useful lives,
they are accounted for as separate items (major components) of property, plant and equipment.
Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the
proceeds from disposal with the carrying amount of property, plant and equipment, and are recognized
in profit or loss.
1732019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
Reclassification to investment property
When the use of a property changes from owner-occupied to investment property, its carrying amount
is recognized and reclassified as investment property.
Subsequent costs
The cost of replacing a part of an item of property, plant and equipment, including major inspections,
is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within
the part will flow to the Company, and its cost can be measured reliably. The carrying amount of the replaced part
is derecognized. The costs of the day-to-day servicing of property, plant and equipment are recognized in profit or
loss as incurred.
Depreciation
Depreciation is calculated based on the depreciable amount, which is the cost of property, plant and
equipment, or other amount substituted for cost, less its residual value.
Depreciation is charged to profit or loss on a straight-line basis over the estimated useful lives of each
component of an item of property, plant and equipment. The estimated useful lives are as follows:
Land improvements 5, 20 years
Building and structures 5, 10, 20 years
Machinery and equipment 5, 10, 15, 20 years
Transportation equipment 5, 10 years
Furniture, fixtures and office equipment 3, 5, 20 years
No depreciation is provided on freehold land or assets under construction.
Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted
if appropriate.
Annual Report 2019 SCG Packaging Public Company Limited174
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
(g) Intangible assets
Intangible assets that are acquired by the Company, which have finite useful lives, are measured at cost less
accumulated amortization and accumulated impairment losses.
Subsequent expenditure
Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in
the specific asset to which it relates.
Amortization
Amortization is calculated based on the cost of the asset, or other amount substituted for cost, less its
residual value.
Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible
assets from the date that they are available for use, since this most closely reflects the expected pattern of
consumption of the future economic benefits embodied in the asset.
The estimated useful lives are as follows:
Software licenses 3, 5, 10 years
No amortization is provided on assets under development.
Amortization methods, useful lives and residual values are reviewed at each reporting period and adjusted
if appropriate.
(h) Impairment
The carrying amounts of the Company’s assets are reviewed at the end of each reporting period to
determine whether there is any indication of impairment. If any such indication exists, the assets’
1752019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
recoverable amounts are estimated. For goodwill and intangible assets that have indefinite useful lives or
are not yet available for use, the recoverable amount is estimated each year at the same time.
An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its
recoverable amount. The impairment loss is recognized in profit or loss unless it reverses a previous
revaluation credited to equity, in which case it is charged to equity.
Calculation of recoverable amount
The recoverable amount of a non-financial asset is the greater of the asset’s value in use and fair value less
costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of money and
the risks specific to the asset.
Reversals of impairment
An impairment loss in respect of a financial asset is reversed if the subsequent increase in recoverable
amount can be related objectively to an event occurring after the impairment loss was recognized in profit
or loss.
Impairment losses recognized in prior periods in respect of other non-financial assets are assessed at each
reporting period for any indications that the loss has decreased or no longer exists. An impairment loss
is reversed if there has been a change in the estimates used to determine the recoverable amount.
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the
carrying amount that would have been determined, net of accumulated depreciation or accumulated
amortization, if no impairment loss had been recognized.
(i) Other payables
Other payables are stated at cost.
Annual Report 2019 SCG Packaging Public Company Limited176
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
(j) Contract liabilities
A contract liability is the obligation to transfer goods or services to the customer. A contract liability
is recognized when the Company receives or has an unconditional right to receive non-refundable
consideration from the customer before the Company recognizes the related revenue.
(k) Employee benefits
Defined contribution plans
Obligations for contributions to defined contribution plans are expensed as the related service is provided.
Defined benefit plans
The Company’s net obligation in respect of defined benefit plans is calculated separately for each plan by
estimating the amount of future benefit that employees have earned in the current and prior periods,
discounting that amount.
The calculation of defined benefit obligations is performed by a qualified actuary using the projected unit
credit method which is based on actuarial valuation method.
Remeasurements of the net defined benefit liability, actuarial gain or loss are recognized in other
comprehensive income. The Company determines the interest expense on the net defined benefit liability
for the period by applying the discount rate used to measure the defined benefit obligation at the beginning
of the annual period, taking into account any changes in the net defined benefit liability during the period
as a result of contributions and benefit payments. Net interest expense and other expenses related to
defined benefit plans are recognized in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that
relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss.
The Company recognizes gains and losses on the settlement of a defined benefit plan when the settlement
occurs.
1772019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
Other long-term employee benefits
The Company’s net obligation in respect of long-term employee benefits is the amount of future benefit
that employees have earned in return for their service in the current and prior periods. That benefit
is discounted to determine its present value. Remeasurements are recognized in profit or loss in the period
in which they arise.
Termination benefits
Termination benefits are expensed at the earlier of when the Company can no longer withdraw the offer of
those benefits and when the Company recognizes costs for a restructuring. If benefits are not expected to
be settled wholly within 12 months of the end of the reporting period, then they are discounted.
Short-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognized for
the amount expected to be paid if the Company has a present legal or constructive obligation to pay this
amount as a result of past service provided by the employee and the obligation can be estimated reliably.
(l) Provisions
A provision is recognized if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation. Provisions are determined by discounting the expected future cash flows
at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific
to the liability. The unwinding of the discount is recognized as finance cost.
(m) Revenue
Revenue excludes value added taxes.
Annual Report 2019 SCG Packaging Public Company Limited178
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
Service fee income
Intellectual property income, management fees for administration and service income are recognized
throughout the royalty period.
Rental income
Rental income is recognized in profit or loss on a straight-line basis over the term of the rent.
Lease incentives granted are recognized as expenses in which they are incurred.
Interest and dividend income
Interest income is recognized in profit or loss using the effective interest method. Dividend income
is recognized in profit or loss on the date the Company’s right to receive payments is established.
(n) Expenses
Operating leases
Payments made under operating leases are recognized in profit or loss on a straight line basis over the term
of the lease. Lease incentives received are recognized in profit or loss as an integral part of the total lease
expense, over the term of lease.
Contingent lease payments are accounted for by revising the minimum lease payments over the remaining
term of the lease when the lease adjustment is confirmed.
Finance costs
Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions and
contingent consideration.
Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying
asset are recognized in profit or loss using the effective interest method.
1792019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
Early retirement expenses
The Company offered certain qualifiable employees the option to take early retirement from the Company.
Eligible employees who accept the offer are paid a lump sum amount which is calculated based on a formula
using their final month’s pay, number of years of service or the number of remaining months before normal
retirement as variables. The Company records expenses on early retirement upon mutual acceptance.
(o) Income tax
Income tax expense for the year comprises current and deferred tax. Current and deferred tax are recognized
in profit or loss except to the extent that they relate to items recognized directly in equity or in other
comprehensive income.
Current tax
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax
rates enacted or substantially enacted at the end of the reporting period, and any adjustment to tax payable
in respect of previous years.
Deferred tax
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not
recognized for the following temporary differences: the initial recognition of goodwill; the initial recognition
of assets or liabilities in a transaction that is not a business combination and that affects neither accounting
nor taxable profit or loss; and differences relating to investments in subsidiaries and joint ventures to the
extent that it is probable that they will not reverse in the foreseeable future. Deferred tax is measured at
the tax rates that are expected to be applied to the temporary differences when they reverse, using tax rates
enacted or substantively enacted at the end of the reporting period.
The measurement of deferred tax assets and liabilities reflects the tax consequences that would follow the
manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying
amount of its assets and liabilities.
Annual Report 2019 SCG Packaging Public Company Limited180
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
In determining the amount of current and deferred tax, the Company takes into account the impact of
uncertain tax positions and whether additional taxes and interest may be due. The Company believes that
its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors,
including interpretations of tax law and prior experience. This assessment relies on estimates and
assumptions and may involve a series of judgments about future events. New information may become
available that causes the Company to change its judgment regarding the adequacy of existing tax liabilities;
such changes to tax liabilities will impact tax expense in the period that such a determination is made.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or
on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax
assets and liabilities will be realized simultaneously.
A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available
against which the temporary differences can be utilized. Future taxable profits are determined based on the
reversal of relevant taxable temporary differences. If the amount of taxable temporary differences
is insufficient to recognize a deferred tax asset in full, then future taxable profits, adjusted for reversals of
existing temporary differences, are considered, based on the business plans for individual subsidiaries in the
Company. Deferred tax assets are reviewed at the end of each reporting period and reduced to the extent
that it is no longer probable that the related tax benefit will be realized.
4 Related parties
Parties are considered to be related to the Company if the Company has the ability, directly or indirectly,
to control the party or exercise significant influence over the party in making financial and operating
decisions, or vice versa.
Relationships with related parties were as follows:
Name of entities
Country of
incorporation /
nationality
Nature of relationships
The Siam Cement Public Company Limited Thailand Ultimate parent company
Siam Kraft Industry Co., Ltd. Thailand Subsidiary, direct ownership interest
Phoenix Pulp & Paper Public Company Limited Thailand Subsidiary, direct ownership interest
1812019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
Name of entities
Country of
incorporation /
nationality
Nature of relationships
Thai Cane Paper Public Company Limited Thailand Subsidiary, direct ownership interest
Thai Containers Group Co., Ltd. Thailand Subsidiary, direct ownership interest
Invenique Co., Ltd. Thailand Subsidiary, direct ownership interest
United Pulp and Paper Co., Inc. Philippines Subsidiary, direct ownership interest
SCGP Excellence Training Center Co., Ltd. Thailand Subsidiary, direct ownership interest
SCG Paper Energy Co., Ltd. Thailand Subsidiary, direct ownership interest
SCGP Solutions Co., Ltd. Thailand Subsidiary, direct ownership interest
SCGP-T Plastics Co., Ltd. Thailand Subsidiary, direct ownership interest
SCGP Solutions (Singapore) Pte. Ltd. Singapore Subsidiary, direct ownership interest
SCGP Rigid Plastics Company Limited Thailand Subsidiary, direct ownership interest
Phoenix Utilities Co., Ltd. Thailand Subsidiary, indirect ownership interest
Thai Containers Khonkaen Co., Ltd. Thailand Subsidiary, indirect ownership interest
Thai Containers Rayong Co., Ltd. Thailand Subsidiary, indirect ownership interest
The Siam Forestry Co., Ltd. Thailand Subsidiary, indirect ownership interest
Thai Paper Co., Ltd. Thailand Subsidiary, indirect ownership interest
Thai Wanabhum Co., Ltd. Thailand Subsidiary, indirect ownership interest
Siam Panawes Co., Ltd. Thailand Subsidiary, indirect ownership interest
Thai Panaboon Co., Ltd. Thailand Subsidiary, indirect ownership interest
Thai Panaram Co., Ltd. Thailand Subsidiary, indirect ownership interest
Panas Nimit Co., Ltd. Thailand Subsidiary, indirect ownership interest
Suanpa Rungsris Co., Ltd. Thailand Subsidiary, indirect ownership interest
Thai Panadorn Co., Ltd. Thailand Subsidiary, indirect ownership interest
Thai Panason Co., Ltd. Thailand Subsidiary, indirect ownership interest
Tawana Container Co., Ltd. Thailand Subsidiary, indirect ownership interest
Dyna Packs Co., Ltd. Thailand Subsidiary, indirect ownership interest
Orient Containers Co., Ltd. Thailand Subsidiary, indirect ownership interest
D-In Pack Co., Ltd. Thailand Subsidiary, indirect ownership interest
TC Flexible Packaging Co., Ltd. Thailand Subsidiary, indirect ownership interest
Prepack Thailand Co., Ltd. Thailand Subsidiary, indirect ownership interest
Precision Print Co., Ltd. Thailand Subsidiary, indirect ownership interest
Annual Report 2019 SCG Packaging Public Company Limited182
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
Name of entities
Country of
incorporation /
nationality
Nature of relationships
Conimex Co., Ltd. Thailand Subsidiary, indirect ownership interest
SKIC International Co., Ltd. Thailand Subsidiary, indirect ownership interest
Visy Packaging (Thailand) Limited Thailand Subsidiary, indirect ownership interest
Vina Kraft Paper Co., Ltd. Vietnam Subsidiary, indirect ownership interest
New Asia Industries Co., Ltd. Vietnam Subsidiary, indirect ownership interest
Alcamax Packaging (Vietnam) Co., Ltd. Vietnam Subsidiary, indirect ownership interest
AP Packaging (Hanoi) Co., Ltd. Vietnam Subsidiary, indirect ownership interest
Packamex (Vietnam) Co., Ltd. Vietnam Subsidiary, indirect ownership interest
Tin Thanh Packing Joint Stock Company Vietnam Subsidiary, indirect ownership interest
TCG Rengo (S) Limited* Singapore Subsidiary, indirect ownership interest
Paperlink Inter-Trade Corporation** Philippines Subsidiary, indirect ownership interest
PT Primacorr Mandiri Indonesia Subsidiary, indirect ownership interest
PT Indoris Printingdo Indonesia Subsidiary, indirect ownership interest
PT Indocorr Packaging Cikarang Indonesia Subsidiary, indirect ownership interest
PT Fajar Surya Wisesa Tbk. Indonesia Subsidiary, indirect ownership interest
Interpress Printers Sendirian Berhad Malaysia Subsidiary, indirect ownership interest
Siam Toppan Packaging Co., Ltd. Thailand Associate, direct ownership interest
P&S Holdings Corporation Philippines Associate, direct ownership interest
Sahagreen Forest Co., Ltd. Thailand Associate, indirect ownership interest
Siam Nippon Industrial Paper Co., Ltd. Thailand Associate, indirect ownership interest
PT SCG Indonesia Indonesia Subsidiary of The Siam Cement Public
Company Limited
SCG Vietnam Co., Ltd. Vietnam Subsidiary of The Siam Cement Public
Company Limited
SCG Legal Counsel Limited Thailand Subsidiary of The Siam Cement Public
Company Limited
* Currently in the liquidation process.
**Paperlink Inter-Trade Corporation amalgamate with United Pulp and Paper Co., Inc. which has already been completed on
25 November 2019.
1832019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
Significant transactions with related parties for the years ended 31 December and the pricing policies are
summarized as follows:
2019 2018 Pricing Policies
(in thousand Baht)
Parent
Rental and service expense 194,986 191,124 Contract rate and percentage of
service provided
Interest expense 1,255,622 777,839 Contract rate
Subsidiaries
Rental income 30,341 28,779 Contract rate
Intellectual property income 7,404 7,553 Percentage of net sales
Management fee income and 1,522,432 1,451,422 Service provided and percentage of
Service charges income net sales
Dividend income 1,556,920 7,802,977 Upon declaration
Interest income 966,849 582,567 Contract rate
Interest expense 392 106 Contract rate
Associates
Dividend income 9,457 11,123 Upon declaration
In the income statement for the year ended 31 December 2019, the Company presents finance costs of
Baht 289 million (2018: Baht 195 million), which is comprised of interest expense from related parties and
finance charges of Baht 1,256 million (2018: Baht 778 million) and interest income from related parties of
Baht 967 million (2018: Baht 583 million).
Annual Report 2019 SCG Packaging Public Company Limited184
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
Balances as at 31 December with related parties were as follows:
Other current receivables
2019 2018
(in thousand Baht)
Parent
The Siam Cement Public Company Limited 5,396 3,471
Subsidiaries
Siam Kraft Industry Co., Ltd. 77,567 56,992
Thai Containers Group Co., Ltd. 30,399 19,071
Vina Kraft Paper Co., Ltd. 24,822 26,432
Thai Paper Co., Ltd. 15,697 18,494
United Pulp and Paper Co., Inc. 15,003 9,143
SCGP Solutions (Singapore) Pte. Ltd. 13,174 -
Phoenix Pulp & Paper Public Company Limited 10,056 12,949
Thai Cane Paper Public Company Limited 8,128 8,824
SCGP Rigid Plastics Company Limited 7,034 -
Tin Thanh Packing Joint Stock Company 5,212 -
SCGP Excellence Training Center Co., Ltd. 3,134 3,638
The Siam Forestry Co., Ltd. 2,344 1,603
Others 11,065 12,377
Total 229,031 172,994
1852019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
Short-term loans to related parties
2019 2018
(in thousand Baht)
Subsidiaries
Siam Kraft Industry Co., Ltd. 29,631,410 13,194,544
Thai Containers Group Co., Ltd. 3,740,011 3,704,207
SCG Paper Energy Co., Ltd. 579,474 826,452
SCGP-T Plastics Co., Ltd. - 137,794
Total 33,950,895 17,862,997
Movements during the years on short-term loans to related parties were as follows:
2019 2018
(in thousand Baht)
At 1 January 17,862,997 11,147,587
Increase 42,426,889 32,824,094
Decrease (26,338,991) (26,108,684)
At 31 December 33,950,895 17,862,997
Advance payment from software licence fee shown under other non-current receivables 2019 2018 (in thousand Baht) Parent
The Siam Cement Public Company Limited 14,050 11,321
Annual Report 2019 SCG Packaging Public Company Limited186
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
Other current payables
2019 2018
(in thousand Baht)
Parent
The Siam Cement Public Company Limited 43,035 43,155
Subsidiaries
Siam Kraft Industry Co., Ltd. 5,048 3,598
SCGP Excellence Training Center Co., Ltd. 2,152 697
Others
SCG Vietnam Co., Ltd. 3,312 3,561
PT SCG Indonesia 1,644 1,768
SCG Legal Counsel Limited 1,162 2,937
Others 2,826 2,925
Total 59,179 58,641
Short-term borrowings from related parties
2019 2018
(in thousand Baht)
Parent
The Siam Cement Public Company Limited 33,756,240 23,309,751
Subsidiaries
SCGP Rigid Plastics Company Limited 98,357 -
SCGP Excellence Training Center Co., Ltd. 28,452 27,553
Invenique Co., Ltd. 15,319 5,267
SCGP-T Plastics Co., Ltd. 8,322 -
SCGP Solutions Co., Ltd. 343 831
Total 33,907,033 23,343,402
1872019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
Movements during the years on short-term borrowings from related parties were as follows:
2019 2018
(in thousand Baht)
At 1 January 23,343,402 15,458,617
Increase 40,569,245 21,258,580
Decrease (30,005,614) (13,373,795)
At 31 December 33,907,033 23,343,402
The Board of Directors and key management compensation
2019 2018
(in thousand Baht)
For the years ended 31 December
Short-term employee benefits 82,730 94,956
Post-employment benefits 16,556 8,609
Total 99,286 103,565
The Board of Directors and key management compensation comprises the remuneration paid to the directors
of SCG Packaging Public Company Limited under the articles of the Company and the remuneration paid to
the management as staff expenses in terms of salary, bonus, variable pay, others and contribution to defined
contribution plans.
Annual Report 2019 SCG Packaging Public Company Limited188
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
5 Other current receivables
Note 2019 2018
(in thousand Baht)
Related parties 4 229,031 172,994
Other parties 25,275 20,400
Total 254,306 193,394
Other current receivables as at 31 December were as follows:
2019 2018
(in thousand Baht)
Accrued service income 192,409 152,529
Accrued interest income 29,111 16,027
Others 32,786 24,838
Total 254,306 193,394
1892019 Financial Statements of SCG Packaging Public Company Limited
No
te
s t
o t
he
fin
an
cia
l state
me
nts
SC
G P
acka
gin
g P
ub
lic C
om
pan
y L
imit
ed
Fo
r th
e y
ears
en
ded
31
Decem
ber
20
19 a
nd
20
18
6 In
vest
men
ts in
ass
ocia
tes
Inve
stm
ents
in a
ssoc
iate
s as
at 3
1 De
cem
ber a
nd d
ivid
end
inco
me
from
thes
e in
vest
men
ts fo
r the
yea
rs th
en e
nded
at t
he s
ame
date
wer
e as
follo
ws:
To
tal h
oldi
ng
Paid
-up
capi
tal
Co
st m
etho
d
Divi
dend
inco
me
20
19
2018
20
19
20
18
20
19
20
18
20
19
20
18
(%
) (in
thou
sand
Bah
t)
Siam
Top
pan
Pack
agin
g Co
., Lt
d.
49
49
500,
000
50
0,00
0
245,
000
24
5,00
0
9,45
7
11,1
23
P&S
Hold
ings
Cor
pora
tion
40
40
262,
588
26
2,58
8
105,
121
10
5,12
1
-
-
Tota
l
76
2,58
8
762,
588
35
0,12
1
350,
121
9,
457
11
,123
Annual Report 2019 SCG Packaging Public Company Limited190
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
7 Investments in subsidiaries
Movements for the years ended 31 December in investments in subsidiaries accounted for using the cost
method were as follows:
2019 2018
(in thousand Baht)
At 1 January 28,398,365 27,027,254
Acquisitions and additional investments 6,049,073 1,371,111
At 31 December 34,447,438 28,398,365
In January 2018, the Company registered SCGP Solutions (Singapore) Pte. Ltd. which is virtually owned
100% totaling Ringgit 61 million or equivalent to approximately Baht 492 million.
In February 2018, the Company had paid-up increased share capital of SCGP-T Plastics Co., Ltd. for
1,480,000 shares at 100 Baht per share totaling Baht 148 million. The Company has already been registered
with the Ministry of Commerce on 6 March 2018.
In March 2018, the Company had paid-up increased share capital of SCGP Solutions Co., Ltd.
for 1,690,000 shares at 100 Baht per share totaling Baht 169 million. The Company has already been
registered with the Ministry of Commerce on 23 March 2018.
In March 2018, the Company had paid-up increased share capital of SCGP Solutions (Singapore) Pte. Ltd. for 9,200,000
shares totaling Ringgit 28 million or equivalent to approximately Baht 225 million and in July 2018, for
399,999 shares totaling Singapore Dollar 399,999 or equivalent to approximately Baht 10 million.
In December 2018, the Company had repurchased shares of Thai Cane Paper Public Company Limited
(“TCP”) from Sa Ha Sit Import and Export (Thailand) Co., Ltd. and other minority shareholders which
consisted of 13,089,234 ordinary shares at Baht 25 per share totaling Baht 327 million. As a result, the
Company’s ownership was increased from 94.54% to 98.20%.
No
te
s t
o t
he
fin
an
cia
l state
me
nts
SC
G P
acka
gin
g P
ub
lic C
om
pan
y L
imit
ed
Fo
r th
e y
ears
en
ded
31
Decem
ber
20
19 a
nd
20
18
6 In
vest
men
ts in
ass
ocia
tes
Inve
stm
ents
in a
ssoc
iate
s as
at 3
1 De
cem
ber a
nd d
ivid
end
inco
me
from
thes
e in
vest
men
ts fo
r the
yea
rs th
en e
nded
at t
he s
ame
date
wer
e as
follo
ws:
To
tal h
oldi
ng
Paid
-up
capi
tal
Co
st m
etho
d
Divi
dend
inco
me
20
19
2018
20
19
20
18
20
19
20
18
20
19
20
18
(%
) (in
thou
sand
Bah
t)
Siam
Top
pan
Pack
agin
g Co
., Lt
d.
49
49
500,
000
50
0,00
0
245,
000
24
5,00
0
9,45
7
11,1
23
P&S
Hold
ings
Cor
pora
tion
40
40
262,
588
26
2,58
8
105,
121
10
5,12
1
-
-
Tota
l
76
2,58
8
762,
588
35
0,12
1
350,
121
9,
457
11
,123
1912019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
In February 2019, the Company registered SCGP Rigid Plastics Company Limited (“SCGPRP”) which is virtually
owned 100% totaling Baht 1 million. In March 2019, the Company had paid-up increased share capital of
SCGPRP for 4,990,000 shares at 100 Baht per share totaling Baht 499 million. The Company has already
been registered with the Ministry of Commerce on 27 March 2019.
In April 2019, SCGP-T Plastics Co., Ltd. (“SCGP-T”) sold increased share capital for 1,431,500 shares at 100
Baht per share totaling Baht 143 million to Toppan Printing Co., Ltd. As a result, the Company ownership
was decreased from 100% to 51%. In May 2019, the Company had paid-up increased share capital of
SCGP-T for 478,125 shares at 100 Baht per share totaling Baht 48 million. The Company has already been
registered with the Ministry of Commerce on 16 May 2019.
In June 2019, SCGP Solutions (Singapore) Pte. Ltd. had increased share capital for 927,400,330 shares or
approximately Baht 20,888 million. The Company had paid-up increased share capital for 69,400,000 shares totaling
United States Dollar 50,000,000 and Singapore Dollar 400,000 or equivalent to approximately Baht 1,598 million.
The remaining shares have been purchased by Siam Kraft Industry Co., Ltd.
In August 2019, the Company had initial paid-up increased share capital of SCGP Rigid Plastics Company Limited
for 57,400,000 shares at 68 Baht per share totaling Baht 3,903 million. The Company has already been registered
with the Ministry of Commerce on 3 September 2019.
Annual Report 2019 SCG Packaging Public Company Limited192
No
te
s t
o t
he
fin
an
cia
l state
me
nts
SC
G P
acka
gin
g P
ub
lic C
om
pan
y L
imit
ed
Fo
r th
e y
ears
en
ded
31
Decem
ber
20
19 a
nd
20
18
Inve
stm
ents
in s
ubsid
iarie
s as
at 3
1 De
cem
ber a
nd d
ivid
end
inco
me
from
thes
e in
vest
men
ts fo
r the
yea
rs th
en e
nded
at t
he s
ame
date
wer
e as
follo
ws:
Tota
l hol
ding
Paid
-up
capi
tal
Cost
met
hod
Ac
cum
ulat
ed
impa
irmen
t los
ses
Net
Divid
end
inco
me
20
19
2018
20
19
20
18
20
19
20
18
20
19
20
18
20
19
20
18
20
19
20
18
(%
) (in
thou
sand
Bah
t)
Siam
Kra
ft In
dust
ry C
o., L
td.
100
100
3,45
0,00
0
3,45
0,00
0
3,98
2,68
0
3,98
2,68
0
-
-
3,98
2,68
0
3,98
2,68
0
1,06
9,50
0
7,10
7,00
0
Thai
Cont
ainer
s Gr
oup
Co.,
Ltd.
70
70
1,
384,
000
1,
384,
000
1,
013,
805
1,
013,
805
-
-
1,
013,
805
1,
013,
805
96
,880
290,
640
Inve
niqu
e Co
., Lt
d.
100
100
70,2
00
70
,200
70,2
00
70
,200
64,0
35
64
,035
6,16
5
6,16
5
-
-
Phoe
nix
Pulp
& P
aper
Pub
lic C
ompa
ny
Lim
ited
69.5
8 69
.58
2,46
2,81
2
2,46
2,81
2
13,4
39,5
61
13
,439
,561
-
-
13,4
39,5
61
13
,439
,561
152,
516
12
6,81
1
Unite
d Pu
lp a
nd P
aper
Co.
, Inc
. 77
.33
77.3
3 4,
327,
982
4,
327,
982
2,
963,
899
2,
963,
899
-
-
2,
963,
899
2,
963,
899
-
-
Thai
Cane
Pap
er P
ublic
Com
pany
Lim
ited
98.2
0 98
.20
3,58
2,53
7
3,58
2,53
7
5,00
7,37
5
5,00
7,37
5
-
-
5,00
7,37
5
5,00
7,37
5
211,
075
25
4,02
6
SCGP
Exc
elle
nce
Train
ing
Cent
er C
o., L
td.
100
100
49,0
00
49
,000
49,0
00
49
,000
-
- 49
,000
49,0
00
26
,949
24
,500
SCG
Pape
r Ene
rgy
Co.,
Ltd.
10
0 10
0 89
0,00
0
890,
000
89
0,00
0
890,
000
-
-
890,
000
89
0,00
0
-
-
SCGP
Sol
utio
ns C
o., L
td.
100
100
170,
000
17
0,00
0
170,
000
17
0,00
0
-
- 17
0,00
0
170,
000
-
-
SCGP
-T P
last
ics C
o., L
td.
51
100
385,
900
14
9,00
0
196,
812
14
9,00
0
-
- 19
6,81
2
149,
000
-
-
SCGP
Sol
utio
ns (S
inga
pore
) Pte
. Ltd
. 10
.34
100
21
,715
,830
726,
880
2,
324,
941
72
6,88
0
-
- 2,
324,
941
72
6,88
0
-
-
SCGP
Rigi
d Pl
astic
s Co
mpa
ny L
imite
d 10
0 -
4,40
3,20
0
-
4,40
3,20
0
-
-
-
4,
403,
200
-
-
-
Tota
l
42
,891
,461
17,2
62,4
11
34
,511
,473
28,4
62,4
00
64
,035
64,0
35
34,4
47,4
38
28
,398
,365
1,55
6,92
0
7,80
2,97
7
No
te
s t
o t
he
fin
an
cia
l state
me
nts
SC
G P
acka
gin
g P
ub
lic C
om
pan
y L
imit
ed
Fo
r th
e y
ears
en
ded
31
Decem
ber
20
19 a
nd
20
18
Inve
stm
ents
in s
ubsid
iarie
s as
at 3
1 De
cem
ber a
nd d
ivid
end
inco
me
from
thes
e in
vest
men
ts fo
r the
yea
rs th
en e
nded
at t
he s
ame
date
wer
e as
follo
ws:
Tota
l hol
ding
Paid
-up
capi
tal
Cost
met
hod
Ac
cum
ulat
ed
impa
irmen
t los
ses
Net
Divid
end
inco
me
20
19
2018
20
19
20
18
20
19
20
18
20
19
20
18
20
19
20
18
20
19
20
18
(%
) (in
thou
sand
Bah
t)
Siam
Kra
ft In
dust
ry C
o., L
td.
100
100
3,45
0,00
0
3,45
0,00
0
3,98
2,68
0
3,98
2,68
0
-
-
3,98
2,68
0
3,98
2,68
0
1,06
9,50
0
7,10
7,00
0
Thai
Cont
ainer
s Gr
oup
Co.,
Ltd.
70
70
1,
384,
000
1,
384,
000
1,
013,
805
1,
013,
805
-
-
1,
013,
805
1,
013,
805
96
,880
290,
640
Inve
niqu
e Co
., Lt
d.
100
100
70,2
00
70
,200
70,2
00
70
,200
64,0
35
64
,035
6,16
5
6,16
5
-
-
Phoe
nix
Pulp
& P
aper
Pub
lic C
ompa
ny
Lim
ited
69.5
8 69
.58
2,46
2,81
2
2,46
2,81
2
13,4
39,5
61
13
,439
,561
-
-
13,4
39,5
61
13
,439
,561
152,
516
12
6,81
1
Unite
d Pu
lp a
nd P
aper
Co.
, Inc
. 77
.33
77.3
3 4,
327,
982
4,
327,
982
2,
963,
899
2,
963,
899
-
-
2,
963,
899
2,
963,
899
-
-
Thai
Cane
Pap
er P
ublic
Com
pany
Lim
ited
98.2
0 98
.20
3,58
2,53
7
3,58
2,53
7
5,00
7,37
5
5,00
7,37
5
-
-
5,00
7,37
5
5,00
7,37
5
211,
075
25
4,02
6
SCGP
Exc
elle
nce
Train
ing
Cent
er C
o., L
td.
100
100
49,0
00
49
,000
49,0
00
49
,000
-
- 49
,000
49,0
00
26
,949
24
,500
SCG
Pape
r Ene
rgy
Co.,
Ltd.
10
0 10
0 89
0,00
0
890,
000
89
0,00
0
890,
000
-
-
890,
000
89
0,00
0
-
-
SCGP
Sol
utio
ns C
o., L
td.
100
100
170,
000
17
0,00
0
170,
000
17
0,00
0
-
- 17
0,00
0
170,
000
-
-
SCGP
-T P
last
ics C
o., L
td.
51
100
385,
900
14
9,00
0
196,
812
14
9,00
0
-
- 19
6,81
2
149,
000
-
-
SCGP
Sol
utio
ns (S
inga
pore
) Pte
. Ltd
. 10
.34
100
21
,715
,830
726,
880
2,
324,
941
72
6,88
0
-
- 2,
324,
941
72
6,88
0
-
-
SCGP
Rigi
d Pl
astic
s Co
mpa
ny L
imite
d 10
0 -
4,40
3,20
0
-
4,40
3,20
0
-
-
-
4,
403,
200
-
-
-
Tota
l
42
,891
,461
17,2
62,4
11
34
,511
,473
28,4
62,4
00
64
,035
64,0
35
34,4
47,4
38
28
,398
,365
1,55
6,92
0
7,80
2,97
7
1932019 Financial Statements of SCG Packaging Public Company Limited
No
te
s t
o t
he
fin
an
cia
l state
me
nts
SC
G P
acka
gin
g P
ub
lic C
om
pan
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Fo
r th
e y
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en
ded
31
Decem
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20
19 a
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20
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9 Pr
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and
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t
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pmen
t
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pmen
t
in p
rogr
ess
To
tal
(in
thou
sand
Bah
t)
Cost
At 1
Janu
ary
2018
43
,016
12
8,25
1 32
1,37
5
891
62
,276
17,2
60
57
3,06
9
Addi
tions
-
19
7 9,
354
78
904
9,
394
19
,927
Disp
osal
s
-
-
(3
,190
)
-
(14,
067)
-
(17,
257)
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sfer
s in
(out
)
-
2,
206
8,23
7
-
1,18
3
(11,
847)
(221
)
At 3
1 De
cem
ber 2
018
43,0
16
130,
654
335,
776
96
9
50,2
96
14
,807
575,
518
Addi
tions
17
5 66
8 7,
980
-
69
4
11,0
30
20
,547
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osal
s
-
-
(
2,08
9)
-
-
(3
,605
)
(5,6
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sfer
s in
(out
)
-
43
3 10
,508
-
900
(8
,170
)
3,67
1
At 3
1 De
cem
ber 2
019
43,1
91
131,
755
352,
175
96
9
51,8
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14
,062
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Annual Report 2019 SCG Packaging Public Company Limited194
No
te
s t
o t
he
fin
an
cia
l state
me
nts
SC
G P
acka
gin
g P
ub
lic C
om
pan
y L
imit
ed
Fo
r th
e y
ears
en
ded
31
Decem
ber
20
19 a
nd
20
18
9 Pr
oper
ty, p
lant
and
equ
ipm
ent
Fu
rnitu
re,
La
nd
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ture
s
an
d la
nd
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gs a
nd
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achi
nery
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spor
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truct
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ts
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and
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pmen
t
equi
pmen
t
equi
pmen
t
in p
rogr
ess
To
tal
(in
thou
sand
Bah
t)
Cost
At 1
Janu
ary
2018
43
,016
12
8,25
1 32
1,37
5
891
62
,276
17,2
60
57
3,06
9
Addi
tions
-
19
7 9,
354
78
904
9,
394
19
,927
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osal
s
-
-
(3
,190
)
-
(14,
067)
-
(17,
257)
Tran
sfer
s in
(out
)
-
2,
206
8,23
7
-
1,18
3
(11,
847)
(221
)
At 3
1 De
cem
ber 2
018
43,0
16
130,
654
335,
776
96
9
50,2
96
14
,807
575,
518
Addi
tions
17
5 66
8 7,
980
-
69
4
11,0
30
20
,547
Disp
osal
s
-
-
(
2,08
9)
-
-
(3
,605
)
(5,6
94)
Tran
sfer
s in
(out
)
-
43
3 10
,508
-
900
(8
,170
)
3,67
1
At 3
1 De
cem
ber 2
019
43,1
91
131,
755
352,
175
96
9
51,8
90
14
,062
594,
042
1952019 Financial Statements of SCG Packaging Public Company Limited
No
te
s t
o t
he
fin
an
cia
l state
me
nts
SC
G P
acka
gin
g P
ub
lic C
om
pan
y L
imit
ed
Fo
r th
e y
ears
en
ded
31
Decem
ber
20
19 a
nd
20
18
Fu
rnitu
re,
La
nd
fix
ture
s
an
d la
nd
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ildin
gs a
nd
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achi
nery
Tran
spor
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n
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e
Cons
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ion
im
prov
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ts
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ruct
ures
and
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pmen
t
equi
pmen
t
equi
pmen
t
in p
rogr
ess
To
tal
(in
thou
sand
Bah
t)
Accu
mul
ated
dep
reci
atio
n
At 1
Janu
ary
2018
11
,849
74
,357
19
0,61
5 37
3 55
,312
-
33
2,50
6
Depr
ecia
tion
char
ge fo
r the
yea
r 10
5,
948
24,8
59
92
3,71
7
-
34
,626
Disp
osal
s
-
-
(
3,15
7)
-
(14,
052)
-
(1
7,20
9)
At 3
1 De
cem
ber 2
018
11,8
59
80,3
05
212,
317
465
44,9
77
-
349,
923
Depr
ecia
tion
char
ge fo
r the
yea
r 12
3,
277
25,4
34
95
2,23
6
-
31
,054
Disp
osal
s
-
-
(276
)
-
-
-
(2
76)
At 3
1 De
cem
ber 2
019
11,8
71
83,5
82
237,
475
560
47,2
13
-
380,
701
Carr
ying
am
ount
At 3
1 De
cem
ber 2
018
31,1
57
50,3
49
123,
459
504
5,31
9 14
,807
22
5,59
5
At 3
1 De
cem
ber 2
019
31,3
20
48,1
73
114,
700
409
4,67
7 14
,062
21
3,34
1
Annual Report 2019 SCG Packaging Public Company Limited196
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
10 Intangible assets
Software
licenses
Software development
licenses cost Total
(in thousand Baht)
Cost
At 1 January 2018 72,549 9,990 82,539
Additions 3,351 7,180 10,531
Transfer in (out) 7,743 (7,522) 221
At 31 December 2018 83,643 9,648 93,291
Additions 2,540 9,287 11,827
Transfer in (out) 5,552 (9,223) (3,671)
At 31 December 2019 91,735 9,712 101,447
Accumulated amortization
At 1 January 2018 58,003 - 58,003
Amortization charge for the year 5,181 - 5,181
At 31 December 2018 63,184 - 63,184
Amortization charge for the year 7,640 - 7,640
At 31 December 2019 70,824 - 70,824
Carrying amount
At 31 December 2018 20,459 9,648 30,107
At 31 December 2019 20,911 9,712 30,623
No
te
s t
o t
he
fin
an
cia
l state
me
nts
SC
G P
acka
gin
g P
ub
lic C
om
pan
y L
imit
ed
Fo
r th
e y
ears
en
ded
31
Decem
ber
20
19 a
nd
20
18
Fu
rnitu
re,
La
nd
fix
ture
s
an
d la
nd
Bu
ildin
gs a
nd
M
achi
nery
Tran
spor
tatio
n
and
offic
e
Cons
truct
ion
im
prov
emen
ts
st
ruct
ures
and
equi
pmen
t
equi
pmen
t
equi
pmen
t
in p
rogr
ess
To
tal
(in
thou
sand
Bah
t)
Accu
mul
ated
dep
reci
atio
n
At 1
Janu
ary
2018
11
,849
74
,357
19
0,61
5 37
3 55
,312
-
33
2,50
6
Depr
ecia
tion
char
ge fo
r the
yea
r 10
5,
948
24,8
59
92
3,71
7
-
34
,626
Disp
osal
s
-
-
(
3,15
7)
-
(14,
052)
-
(1
7,20
9)
At 3
1 De
cem
ber 2
018
11,8
59
80,3
05
212,
317
465
44,9
77
-
349,
923
Depr
ecia
tion
char
ge fo
r the
yea
r 12
3,
277
25,4
34
95
2,23
6
-
31
,054
Disp
osal
s
-
-
(276
)
-
-
-
(2
76)
At 3
1 De
cem
ber 2
019
11,8
71
83,5
82
237,
475
560
47,2
13
-
380,
701
Carr
ying
am
ount
At 3
1 De
cem
ber 2
018
31,1
57
50,3
49
123,
459
504
5,31
9 14
,807
22
5,59
5
At 3
1 De
cem
ber 2
019
31,3
20
48,1
73
114,
700
409
4,67
7 14
,062
21
3,34
1
1972019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
11 Deferred tax asset (deferred tax liability)
Deferred tax asset and liability are offset if there is a legally enforceable right to offset current tax asset and
liability, and they relate to income taxes levied by the same tax authority on the same taxable entity, and
are included in the statement of financial position as follows:
2019 2018
(in thousand Baht)
Deferred tax asset 59,101 34,603
Deferred tax liability (2) (1)
Net 59,099 34,602
Movements in total deferred tax asset and liability during the years were as follows:
Credited to
At profit other At
1 January or loss comprehensive 31 December
2018 income 2018
(Note 19)
(in thousand Baht)
Deferred tax asset
Provisions for employee benefits 17,842 568 16,193 34,603
Deferred tax liability
Unrealized gain on foreign
currency exchange (55)
54 -
(1)
Net 17,787 622 16,193 34,602
Annual Report 2019 SCG Packaging Public Company Limited198
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
Credited (charged) to
At profit other At
1 January or loss comprehensive 31 December
2019 income 2019
(Note 19)
(in thousand Baht)
Deferred tax asset
Provisions for employee benefits 34,603 18,875 5,623 59,101
Deferred tax liability
Unrealized gain on foreign
currency exchange (1)
(1) -
(2)
Net 34,602 18,874 5,623 59,099
The deductible temporary differences and unused tax losses that the Company have not recognized as
deferred tax assets are as the following items:
2019 2018
(in thousand Baht)
Temporary differences
- Other current receivables 16,963 16,963
- Investment in subsidiaries 64,035 64,035
Unused tax losses 333,690 -
Total 414,688 80,998
The unused tax losses on which the Company has not recognized deferred tax assets are the tax losses
which do not expire under tax legislation and would be expired within 2024.
1992019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
12 Other current payables
2019 2018
(in thousand Baht)
Accrued expenses 88,798 48,486
Withholding tax payable 41,269 43,549
Accrued interest 39,138 20,969
Value added tax payable 6,922 4,768
Account payables from purchases of assets 2,207 5,526
Others 71,239 16,127
Total 249,573 139,425
13 Borrowings from financial institutes
As of 18 November 2019, the Company entered into loan agreements with various local financial institutions
for Baht 26,500 million. In 2019, the Company has drawn-down under the loan agreements amounting to
Baht 12,000 million. The interest rates were 2.355% and 2.50% per annum.
In January 2020, the Company has drawn-down under loan agreements for Baht 14,500 million.
14 Non-current provisions for employee benefits
The Company operates defined benefits plans based on the requirement of the Thai Labor Protection Act
B.E. 2541 to provide retirement benefits and other long-term benefits to employees based on pensionable
remuneration and length of service.
The defined benefit plans expose the Company to actuarial risks, such as longevity risk, interest rate risk and
market risk.
Annual Report 2019 SCG Packaging Public Company Limited200
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
Non-current provisions for employee benefits in statement of financial position as at 31 December
2019 2018
(in thousand Baht)
Post-employment benefits - legal severance payments plan 288,374 154,350
Other long-term employee benefits 7,133 5,228
Total 295,507 159,578
Movements in the present value of non-current provisions for defined benefit plans
2019 2018
(in thousand Baht)
Non-current provisions for defined benefit plans at 1 January 159,578 75,451
Included in profit or loss
Current service costs 12,689 4,036
Interest on obligation 7,055 2,679
Actuarial losses 889 1,841
Past service cost from the amended severance pay of the Labor Law 50,795 -
Transfer of non-current provisions for employee benefits 46,436 -
117,864
8,556
Included in other comprehensive income
Actuarial losses 28,246 80,963
Other
Benefits paid (10,181) (5,392)
Non-current provisions for defined benefit plans at 31 December 295,507 159,578
2012019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
On 5 April 2019, the Labor Protection Act has already been announced in Royal Gazette that became effective
on 5 May 2019 to include a requirement that an employee who is terminated after having been employed by
the same employer for an uninterrupted period of twenty years or more, receives severance payment of 400
days of wages at the most recent rate, which is increased from the maximum rate of 300 days. The Company
recognized the effect of this change as the expense amounted to Baht 51 million in income statement, resulting
in the decrease in net profit amounted to Baht 41 million.
Actuarial losses (gains) recognized in other comprehensive income as of the end of the reporting period arising
from:
2019 2018
(in thousand Baht)
For the years ended 31 December
Demographic assumptions (109) 48,181
Financial assumptions 18,069 2,406
Experience adjustment 10,286 30,376
Total 28,246 80,963
Actuarial assumptions
Principal actuarial assumptions as of the end of the reporting period
2019 2018
(%)
For the years ended 31 December
Discount rate* 1.70 - 1.74 3.02 - 3.09
Salary increase rate 2.00 - 7.00 3.00 - 7.00
Employee turnover rate** 4.00 - 9.00 4.00 - 10.00
Mortality rate*** 100.00 of TMO 2017 100.00 of TMO 2017
* Market yields on government’s bonds for legal severance payments plan
** Upon the length of service
*** Reference from TMO2017: Thai Mortality Ordinary Table 2017
Annual Report 2019 SCG Packaging Public Company Limited202
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2032019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
15 Share capital
2019 2018
Par Number Number
Value of shares Value of shares Value
(in Baht) (in thousand shares /
thousand Baht)
(in thousand shares /
thousand Baht)
Authorized
At 1 January
- ordinary shares 10 - - 156,300 1,563,000
Reduction in par value
- ordinary shares 1 1,563,000 1,563,000 - -
Increase of new shares
- ordinary shares 1 2,937,000 2,937,000 - -
At 31 December
- ordinary shares 10 - - 156,300 1,563,000
- ordinary shares 1 4,500,000 4,500,000 - -
Issued and paid-up
At 1 January
- ordinary shares 10 - - 156,300 1,563,000
Reduction in par value
- ordinary shares 1 1,563,000 1,563,000 - -
Increase of new shares
- ordinary shares 1 1,563,000 1,563,000 - -
At 31 December
- ordinary shares 10 - - 156,300 1,563,000
- ordinary shares 1 3,126,000 3,126,000 - -
Annual Report 2019 SCG Packaging Public Company Limited204
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2052019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
17 Administrative expenses
2019 2018
(in thousand Baht)
Salary, welfare and personnel expenses 1,080,087 931,991
Service expenses 122,647 114,364
Rent, depreciation and amortization expenses 101,126 90,147
Professional and consultant fees 98,102 75,862
IT fees 59,516 50,472
Others 119,300 111,369
Total 1,580,778 1,374,205
18 Employee benefit expenses
2019 2018
(in thousand Baht)
Salary and wages 817,667 749,973
Contribution to defined contribution plans 64,428 55,702
Contribution to defined benefit plans 67,069 8,556
Welfares and others 130,923 117,760
Employee benefit expense from the amended
severance pay of the Labor Law 50,795 -
Total 1,130,882 931,991
The defined contribution plans comprise provident funds established by the Company for its employees
in addition to the above provident fund. The provident funds were registered with the Ministry of Finance
under the Provident Fund Act B.E. 2530. Membership to the funds is on a voluntary basis. Contributions
are made monthly by the employees at 2% to 15% of their basic salaries and by the Company at 5% to
13% of the members’ basic salaries, depending on the length of employment.
Annual Report 2019 SCG Packaging Public Company Limited206
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
19 Income tax
Income tax recognized in profit or loss
Note 2019 2018
(in thousand Baht)
Current tax
Current tax - 24,943
Over provided in prior years (3,674) (3,133)
(3,674) 21,810
Deferred tax
Movements in temporary differences 11 (18,874) (622)
Total (22,548) 21,188
Income tax recognized in other comprehensive income
2019 2018
(in thousand Baht)
Actuarial losses (5,623) (16,193)
2072019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
Reconciliation of effective tax rate
For the years ended December 31, 2019 and 2018, the Company’s effective tax rate is not equal to the statutory
tax rate of 20% under the Revenue Code because income tax expense is calculated from accounting profit
adjusted by non-deductible expenses, deducted income or expense exemption under the Revenue Code.
2019 2018
Rate
(%)
(in thousand
Baht)
Rate
(%)
(in thousand
Baht)
Profit before income tax 1,223,100 7,946,182
Income tax using the Thai corporation tax rate 20 244,620 20 1,589,236
Income not subject to tax (313,275) (1,562,820)
Expenses deductible at a greater amount (21,219) (6,373)
Expenses not deductible for tax purposes 25,175 6,422
Prior year expenses deductible for tax purposes (2,039) (1,522)
Tax loss 66,738 -
Current tax - 24,943
Over provided in prior years (3,674) (3,133)
Movement in temporary differences (18,874) (622)
Income tax expense (benefits) - (22,548) 0.27 21,188
20 Basic earnings per share
The calculations of basic earnings per share for the years ended 31 December was based on the profit for
the years attributable to owners of the parent and the weighted average number of ordinary shares
outstanding during the years, after adjusting the number of ordinary shares in proportion to the change in
the number of shares as a result of the stock split and distribution of stock dividend disclosed in note 15
and 21. The number of ordinary shares used in the calculation are adjusted as if such change had occurred
at the beginning of the earliest reporting period as follows:
Annual Report 2019 SCG Packaging Public Company Limited208
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
Note 2019 2018
(in thousand Baht / thousand shares)
Profit for the year attributable to ordinary
shareholders of the Company 1,245,648 7,924,994
Weighted average number of ordinary shares
outstanding at 1 January 156,300 156,300
Effect of reduction in par value 15 1,406,700 1,406,700
Effect of stock dividend 15 1,563,000 1,563,000
Weighted average number of ordinary shares
outstanding at 31 December 3,126,000 3,126,000
Basic earnings per share (in Baht) 0.40 2.54
21 Dividends
The dividends paid by the Company to the shareholders are as follows:
Approval date Payment schedule
Dividend rate
per share Amount
(Baht) (in million Baht)
2019
Annual dividend 2018 26 March 2019 25 April 2019 10.00 1,563
Interim dividend 25 November 2019 6 December 2019 1.11111111 1,737
Total 11.11111111 3,300
2018
Annual dividend 2017 23 March 2018 20 April 2018 50.00 7,815
On 25 November 2019, at the Extra ordinary general meeting of shareholders of the Company, they passed
resolution to approve the interim dividend payment, detail are as follows;
2092019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
1. Pay dividend by ordinary shares of 1,563,000,000 shares at par value of Baht 1 per share, in the ratio of
1 current share per 1 dividend share.
2. Pay dividend by cash at Baht 0.11111111 per share, totaling Baht 174 million.
22 Lease agreements
(a) The Company entered into lease agreements with related parties covering the land where its buildings
are located. These agreements will be gradually due within October 2022. Under the terms of these
agreements, the Company has to pay annual rental as follows:
2019 2018
(in thousand Baht)
Within one year 3,749 1,800
After one year but within five years 4,561 -
Total 8,310 1,800
(b) The various car lease agreements. These agreements will be gradually due within November 2024.
Under the terms of these agreements, the Company has to pay annual rental as follows:
2019 2018
(in thousand Baht)
Within one year 15,724 12,325
After one year but within five years 23,733 20,437
Total 39,457 32,762
23 Financial instruments
Liquidity risk
The Company monitors its liquidity risk and maintains a level of cash and cash equivalents deemed adequate
to finance the Company’s operations and to mitigate the effects of fluctuations in cash flows.
Annual Report 2019 SCG Packaging Public Company Limited210
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
Interest rate risk
Interest rate risk arises from the changing of interest rates, which may effect current and future operations
of the Company. Management believes that the interest rate risk is minimal, hence, the Company does not
have any hedging agreement to protect such risk.
The effective interest rates of loans receivables as at 31 December and the periods in which the loans
receivables mature were as follows:
Loans receivable
After 1 year
Effective interest
rates
Within
1 year
but within
5 years
Total
(% per annum) (in thousand Baht)
2019
Current
Short-term loans
to related parties
3.50 - 3.75 33,950,895
-
33,950,895
2018
Current
Short-term loans
to related parties
3.75
17,862,997
-
17,862,997
The effective interest rates of interest-bearing financial liabilities as at 31 December and the periods in which
those liabilities mature were as follows:
2112019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
Financial liabilities
After 1 year
Effective interest
rates
Within
1 year
but within
5 years
Total
(% per annum) (in thousand Baht)
2019
Current
Short-term borrowings
from related parties
0.50 - 3.75
33,907,033
-
33,907,033
Non-current
Long-term borrowings from
financial institutions 2.355, 2.50 - 12,000,000 12,000,000
Total 33,907,033 12,000,000 45,907,033
2018
Current
Short-term borrowings
from related parties
0.50 - 3.75
23,343,402
-
23,343,402
Foreign exchange risk
The Company’s exposure to foreign exchange risk relates principally to its receivables and payables which
are denominated in foreign currencies. However, as at 31 December 2019 and 2018, the Company does not
have material foreign currency risk.
Fair value of financial assets and liabilities
Since the majority of the financial assets and liabilities classified as short-term and loans are bearing interest
at rates closed to current market rate, the management believes that as at 31 December 2019 and 2018,
the carrying amount of the Company’s financial instruments does not materially differ from their aggregate
fair value.
Annual Report 2019 SCG Packaging Public Company Limited212
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
24 Capital management
The management of the Company has the capital management policy to maintain a strong capital base by
emphasis in planning and determining the operating strategies resulting in good business’s performance and
sustain good cash flows management. In addition, the Company considers investing in projects which have
good rate of return, appropriate working capital management, maintain a strong financial position and
appropriate investment structure as to maintain sustain future operations of the business and to maintain
shareholders, investors, creditors and others interest’s confidence.
25 Others
On 26 October 2019, The Board of Directors’ Meeting No. 214 (10/2019) has approved the plan to issue and
offer newly issued ordinary shares in the Company as an initial public offering (IPO) and to list the ordinary
shares in the Company on the Stock Exchange of Thailand. The portion of the shares to be offered for sale
in the IPO will not exceed 30% of the Company’s paid-up capital after its capital increase.
On 17 December 2019, the Company submitted to Thai SEC a registration statement and draft prospectus
for the IPO. In connection with the IPO, the Company will issue and offer no more than 1,374,000,000
ordinary shares with a par value of 1 Thai Baht per share.
26 Events after the reporting period
At the Board of Directors’ Meeting of the Company held on 28 January 2020, the directors proposed for
approval at the Annual General Meeting of Shareholders, the payment of a dividend for 2019 at the rate of
Baht 0.42 per share, amounting to Baht 1,313 million and is scheduled for payment on 23 April 2020. The
dividend is subject to the approval of the Shareholders at the Annual General Meeting to be held on
24 March 2020.
2132019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
27 Reclassification of accounts
Certain accounts in the 2018 financial statement have been reclassified to conform to the presentation in
the 2019 financial statements were as follows:
Before
reclassification
Reclassification
After
reclassification
(in thousand Baht)
Statement of income
For the year ended 31 December 2018
Service income 1,287,578 174,873 1,462,451
Other income 403,022 (174,873) 228,149
28 Thai Financial Reporting Standards (TFRSs) that have been issued but are not yet effective
The new and revised TFRSs, which are relevant to the Company’s operations, become effective for the
financial statements in annual reporting periods beginning on or after 1 January 2020. The Company does
not adopt these TFRSs early. The new TFRSs are as follows:
TFRS Topic
TFRS 7* Financial Instruments: Disclosures
TFRS 9* Financial Instruments
TFRS 16 Lease
TAS 32* Financial Instruments: Presentation
TFRIC 16* Hedges of a Net Investment in a Foreign Operation
TFRIC 19* Extinguishing Financial Liabilities with Equity Instruments
* TFRS - Financial instruments standards
Annual Report 2019 SCG Packaging Public Company Limited214
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
(a) TFRS - Financial instruments standards
These TFRS - Financial instruments standards establish requirements related to definition, recognition,
measurement, impairment and derecognition of financial assets and financial liabilities, including
accounting for derivatives and hedge accounting. When these TFRS are effective, some accounting
standards, interpretations and guidance which are currently effective will be cancelled. The impact from
adoption of TFRS - Financial instruments depends on the Company’s financial instruments by following
TFRS - Financial instruments as follows:
(1) Classification - Financial assets
TFRS 9 classifies financial assets into three categories: measured at amortized cost, fair value to
other comprehensive income (FVOCI) and fair value to profit or loss (FVTPL). The standard eliminates
the existing classification of held-to-maturity debt securities, available-for-sale securities, trading
securities and general investment as specified by TAS 105. The classification under TFRS 9 will be based
on the cash flow characteristics of the financial asset and the business model in which they are managed.
Under TFRS 9, derivatives will be measured at FVTPL. It will replace current accounting policies of the
Company on recognition of adjustment value at the exchange rate at the end of period or when
the derivatives were exercised.
The Company has made assessment of classification - Financial assets under TFRS 9. This adoption has no
material effect on the financial statements of the Company.
(2) Measurement at amortized cost
Under TFRS 9, interest income and interest expenses recognized from all financial assets and financial
liabilities measured at amortized cost shall be calculated using effective interest rate method. The adoption
of TFRS 9 has no material effect on the financial statements of the Company.
(3) Impairment - Financial assets
TFRS 9 introduces forward-looking “expected credit loss” (ECL) model whereas currently the Company
estimates allowance for doubtful account by analyzing payment histories and future expectation of
2152019 Financial Statements of SCG Packaging Public Company Limited
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
customer payment. TFRS 9 requires consideration about how changes in economic factors affect ECLs,
which will be determined on a probability-weighted basis.
The new impairment model will apply to financial assets measured at amortized cost or FVOCI, except
for investments in equity instruments.
The Company has made assessment the impairment of financial assets under TFRS 9. This adoption has no
material effect on the financial statements of the Company.
(4) Classification - Financial liabilities
TFRS 9 introduces a new classification and measurement approach for financial liabilities consisting of two
principal classification categories: amortized cost and FVTPL. A financial liability is classified as financial
liabilities measured at FVTPL if it is held for trading, a derivative or designated as such on the initial recognition.
The Company classified other financial liabilities which are not held for trading or derivative measured at
amortized cost. The adoption of TFRS 9 has no material effect on the financial statements of the Company.
(5) Hedge accounting
TFRS 9 introduces guidance on hedge accounting while current TFRSs are silent. There are three hedge
accounting models and the type of model applied depends on the hedged exposures consisting of a fair
value exposure, a cash flow exposure or a foreign currency exposure on a net investment in a foreign
operation. Under TFRS 9, the Company is required to ensure that hedge accounting relationships are aligned
with the Company’s risk management objectives and strategy and to apply a more qualitative and forward-
looking approach to assess hedge effectiveness. Accordingly, TFRS 9 provides an option to apply hedge
accounting when the transactions are qualified. At the initial date of first time adoption, the Company has no
effect on this matter.
Annual Report 2019 SCG Packaging Public Company Limited216
Notes to the financial statements
SCG Packaging Public Company Limited
For the years ended 31 December 2019 and 2018
Transition
The Company applied these TFRS for the first time by adjusting the cumulative impact to retained earnings on
1 January 2020 with no restatement of comparative information.
(b) TFRS 16 Leases
TFRS 16 introduces a single lessee accounting model for lessees. A lessee recognizes a right-of-use asset
and a lease liability. There are recognition exemptions for short-term leases and leases of low-value
items. Lessor accounting remains to the current standard. When this TFRS is effective, some accounting
standards and interpretations which are currently effective will be cancelled. Currently, the Company
recognizes payments made under operating leases in income statement on a straight-line basis over the
term of the lease.
The Company made assessment of TFRS 16 adoption. On 1 January 2020, the Company recognized the
increase in right-of-use assets approximately Baht 114 million which affect to increase in lease liabilities
approximately Baht 114 million. The nature of expenses related to those leases will change because
the Company will recognize depreciation of right-of-use assets and interest expenses on lease liabilities.
Transition
The Company applied TFRS 16 for the first time on 1 January 2020 using the modified retrospective
approach, by recognizing right-of-use assets and lease liabilities with no restatement of comparative
information.
2172019 Financial Statements of SCG Packaging Public Company Limited
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ai C
onta
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ased
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ased
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hin
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w A
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hu D
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ty, V
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am
(84)
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160
(84)
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**34
5 -
- 70
.00
Annual Report 2019 SCG Packaging Public Company Limited218
Nam
ePr
inci
pal B
usin
ess/
Pr
oduc
tsH
ead
Offi
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leph
one
Facs
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of
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es
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and
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id-u
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Num
ber
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Num
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Com
pany
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l D
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t/In
dire
ct
Hol
ding
* (P
erce
nt)
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cam
ax P
acka
ging
(Vie
tnam
) Co.
, Ltd
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ber-B
ased
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kagin
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treet
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huan
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rict,
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rovi
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kagin
g (H
anoi
) Co.
, Ltd
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ber-B
ased
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kagin
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t 6 N
am S
ach
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68**
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td.
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220
--
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na P
acks
Co.
, Ltd
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ber-B
ased
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12/5
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ares
298
503,
167
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ris P
rintin
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aya
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ng K
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ten
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ince
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ia
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21
596
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1 59
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596
3076
Ord
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ares
55 2
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69.9
6
27Ph
oeni
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lp &
Pap
er P
ublic
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pany
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ares
Pr
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res
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4,78
0 9,
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6,85
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s Co
., Lt
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ud N
am S
ai S
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4343
310
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rdin
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es1,
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- 69
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29Th
ai P
aper
Co.
, Ltd
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od S
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ce P
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cts/
Pu
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nd P
aper
Pro
duct
s1
Siam
Cem
ent R
oad,
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gsue
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0 25
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333
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86 2
164
Ord
inar
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ares
7,77
077
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164
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ares
184
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., Lt
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ry P
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angs
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oad,
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0 25
86 3
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0 25
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164
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ares
1.5
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33Th
ai P
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Ltd.
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86 2
164
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ares
1.5
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ai P
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angs
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ares
2.5
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ai P
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ent R
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164
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ares
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angs
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Num
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Num
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irec
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ai U
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aper
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u 2,
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ra P
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ary
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ters
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ares
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ence
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res
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r Man
diri
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acka
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aya
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ares
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ar S
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uis
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ta P
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344
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21
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7643
Ord
inar
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ares
547
250,
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xible
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., Lt
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ldin
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ny
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am C
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angs
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ary
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es2,
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- 52
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GP-T
Pla
stics
Co.
, Ltd
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ldin
g Co
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ny
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am C
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t Roa
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angs
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td.
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r-Bas
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599
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0 27
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ares
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am N
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n In
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aper
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, Ltd
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am C
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angs
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* Di
rect
ly a
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dire
ctly
hol
ding
thro
ugh
the
com
pany
, sub
sidia
ries,
asso
ciate
s an
d ot
her c
ompa
nies
.
** N
o iss
uanc
e of
sha
re fo
r the
Lim
ited
Liab
ility
Com
pany
inco
rpor
ated
in V
ietn
am. T
he c
apita
l con
tribu
tion
is as
stip
ulat
ed in
the
Hold
ing
Com
pany
cer
tifica
te o
f the
inve
sted
com
pany
.
Annual Report 2019 SCG Packaging Public Company Limited220
SCG Packaging Public Company Limited
Company Profile
Registration No. 0107537000921
Head Office Address 1 Siam Cement Road, Bangsue, Bangkok 10800
Business Type The Company generates revenue from holding shares in other
companies (Holding Company), operating core business for
packaging solutions provider which are organized into two main
operating segments: integrated packaging chain and fibrous chain,
also other relating businesses.
Initial Registered Capital (as at the registration date of conversion into the Public Limited
Company on March 24, 1994)
Registered Capital: 1,000 Million Baht
Paid-up Capital: 1,000 Million Baht
Issued and paid up ordinary shares of: 100 Million shares
Issued and paid up preference shares: - None -
Par value of 10 Baht per share
Present Registered Capital Registered capital: 4,500 Million Baht
Paid-up capital: 3,126 Million Baht
Issued and paid up ordinary shares of: 3,126 Million shares
Issued and paid up preference shares: - None -
Par value of 1 Baht per share
Website www.scgpackaging.com
Share Registrar Tel: +66 2586 2894
Fax: +66 2586 3007
E-mail: [email protected]
Investors can find further information regarding the Company from the Registration Statement for Securities Offering (Form 69-1) and Prospectus which has been disclosed at www.sec.or.th or www.scgpackaging.com.
First 10 major Shareholders (As of December 31, 2019)
ShareholdersNo. of Ordinary
Shares (Issued and Paid-up)
Percent of Total Shares
1. The Siam Cement Public Company Limited 3,095,882,660 99.037
2. Mr. Taewan Tantichattanont 2,320,000 0.074
3. Randery Burahmakan Company Limited 1,872,000 0.060
4. Ms. Orapin Thidarat 1,634,000 0.052
5. Mr. Man Nana 1,563,200 0.050
6. Roman Catholic Mission of Bangkok 1,068,960 0.034
7. Mr. U-thane Tantichattanont 1,000,000 0.032
8. Mr. Somsak Nana 931,440 0.030
9. Mr. Pipatpong Israsena Na Ayudhya 528,880 0.017
10. Mr. Yuph Nana 499,440 0.016
11. Other Shareholders 18,699,420 0.598
Total 3,126,000,000 100.000