Common use of BASIS FOR PREPARATION OF FINANCIAL STATEMENTS Clause in Contracts

BASIS FOR PREPARATION OF FINANCIAL STATEMENTS. 3.1 Basis for the preparation of interim financial statements These interim financial statements are prepared in accordance with Thai Accounting Standard No. 34 (revised 2018) Interim Financial Reporting, and the requirements of the Securities and Exchange Commission (SEC). The interim financial statements are intended to provide information additional to that included in the latest annual financial statements. Accordingly, they focus on new activities, events, and situations and not intended to re-emphasis on the information previously reported. The interim financial statements should therefore, be read in conjunction with the financial statements for the year ended December 31, 2018. The interim financial statements have been prepared on a historical cost basis except where otherwise disclosed in the accounting policies. The interim financial statements in Thai language are the official statutory financial statements of the Company. The interim financial statements in English language have been translated from the financial statements in Thai language version. 3.2 Thai Financial Reporting Standards that become effective in the current year During the period, the Company and its subsidiaries have adopted the revised and new financial reporting standards and interpretations (revised 2018) including new accounting treatment guidance, which are effective for fiscal years beginning on or after January 1, 2019. These financial reporting standards were aimed at alignment with the corresponding International Financial Reporting Standards with most of the changes and clarifications directed towards disclosures in the notes to financial statements. The adoption of these financial reporting standards does not have any significant impact on the Company and its subsidiaries’ financial statements. However, the new standard involves changes to key principles, as summarized below.

BASIS FOR PREPARATION OF FINANCIAL STATEMENTS. 3.1 2.1 Basis for the preparation of interim financial statements These interim financial statements are prepared in accordance with Thai Accounting Standard No. 34 (revised 2018) “Interim Financial Reporting”, and the requirements of the Securities and Exchange Commission (SEC). The interim financial statements are intended to provide information additional to that included in the latest annual financial statements. Accordingly, they focus on new activities, events, and situations and not intended to re-emphasis on the information previously reported. The interim financial statements should therefore, be read in conjunction with the financial statements for the year ended December 31, 20182022. The interim financial statements have been prepared on a historical cost basis except where otherwise disclosed in the accounting policies. The interim financial statements in Thai language are the official statutory financial statements of the Company. The interim financial statements in English language have been translated from the financial statements in Thai language version. 3.2 Thai 2.2 Financial Reporting Standards reporting standards that become became effective in the current year period During the period, the Company and its subsidiaries Group have adopted the revised and new financial reporting standards and interpretations (revised 2018) including new accounting treatment guidancestandards, which are effective for fiscal years beginning on or after January 1, 20192023. These This revision is for the financial reporting standards were aimed at alignment to be clearer and more appropriate and to conform with international financial reporting standards. Such revision does not affect the corresponding International Financial Reporting Standards with most principles of the changes standards and clarifications directed towards disclosures in does not affect the notes to users of the financial statementsreporting standards. The adoption of these financial reporting standards does not have any significant impact on the Company and its subsidiaries’ financial statements. However, statements in the new standard involves changes to key principles, as summarized belowcurrent period.

BASIS FOR PREPARATION OF FINANCIAL STATEMENTS. 3.1 Basis for the preparation The Preparation of interim financial statements Interim Financial Statements These interim financial statements are prepared in accordance with Thai Accounting Standard No. 34 (revised 2018) “Interim Financial Reporting”, and the requirements of the Securities and Exchange Commission (SEC). The interim financial statements are intended to provide information additional to that included in the latest annual financial statements. Accordingly, they focus on new activities, events, and situations and not intended to re-emphasis on the information previously reported. The interim financial statements should therefore, be read in conjunction with the financial statements for the year ended December 31, 20182021. The interim financial statements have been prepared on a historical cost basis except where otherwise disclosed in the accounting policies. The interim financial statements in Thai language are the official statutory financial statements of the Company. The interim financial statements in English language have been translated from the financial statements in Thai language version. 3.2 Thai Financial Reporting Standards reporting standards that become became effective in the current year period During the period, the Company and its subsidiaries have Group has adopted the revised and new financial reporting standards and interpretations (revised 2018) including new accounting treatment guidance, which are effective for fiscal years beginning on or after January 1, 20192022. These financial reporting standards were aimed at alignment with the corresponding International Financial Reporting Standards with most of the changes and clarifications directed towards disclosures in clarifying accounting treatment and providing accounting guidance for users of the notes to financial statementsstandards. The adoption of these financial reporting standards does not have any significant impact on the Company and its subsidiaries’ financial statements. However, statements in the new standard involves changes to key principles, as summarized belowcurrent period.

BASIS FOR PREPARATION OF FINANCIAL STATEMENTS. 3.1 2.1 Basis for the preparation of interim financial statements These interim financial statements are prepared in accordance with Thai Accounting Standard No. 34 (revised 2018) “Interim Financial Reporting”, and the requirements of the Securities and Exchange Commission (SEC). The interim financial statements are intended to provide information additional to that included in the latest annual financial statements. Accordingly, they focus on new activities, events, and situations and not intended to re-emphasis on the information previously reported. The interim financial statements should therefore, be read in conjunction with the financial statements for the year ended December 31, 20182021. The interim financial statements have been prepared on a historical cost basis except where otherwise disclosed in the accounting policies. The interim financial statements in Thai language are the official statutory financial statements of the Company. The interim financial statements in English language have been translated from the financial statements in Thai language version. 3.2 Thai 2.2 Financial Reporting Standards reporting standards that become became effective in the current year period During the period, the Company and its subsidiaries have has adopted the revised and new financial reporting standards and interpretations (revised 2018) including new accounting treatment guidancestandards, which are effective for fiscal years beginning on or after January 1, 20192022. These financial reporting standards were aimed at alignment with the corresponding International Financial Reporting Standards with most of the changes and clarifications directed towards clarifying accounting practices, accounting guidance and disclosures in the notes to the financial statementsstatements and, for some standards, providing temporary reliefs or temporary exemptions to users of the standards. The adoption of these financial reporting standards does not have any significant impact on the Company and its subsidiaries’ financial statements. However, statements in the new standard involves changes to key principles, as summarized belowcurrent period.

BASIS FOR PREPARATION OF FINANCIAL STATEMENTS. 3.1 Basis for the preparation of interim financial statements These interim financial statements are prepared in accordance with Thai the Accounting Standard No. 34 (revised 2018) Interim Financial ReportingInformation, and the requirements of the Securities and Exchange Commission (SEC). The interim financial statements are intended to provide information additional to that included in the latest annual financial statements. Accordingly, they focus on new activities, events, and situations and not intended to re-emphasis emphasize on the information previously reported. The interim financial statements should therefore, be read in conjunction with the financial statements for the year ended December 31, 2018. The interim financial statements have been prepared on a historical cost basis except where otherwise disclosed in the accounting policies. The interim financial statements in Thai language are the official statutory financial statements of the Company. The interim financial statements in English language have been translated from the financial statements in Thai language version. 3.2 Thai Financial Reporting Standards that become effective in the current year During the period, the Company and its subsidiaries have adopted the revised and new financial reporting standards and interpretations (revised 2018) including new accounting treatment guidance, which are effective for fiscal years beginning on or after January 1, 2019. These financial reporting standards were aimed at alignment with the corresponding International Financial Reporting Standards with most of the changes and clarifications directed towards disclosures in the notes to financial statements. The adoption of these financial reporting standards does not have any significant impact on the Company and its subsidiaries’ financial statements. However, the new standard involves changes to key principles, as summarized below.

BASIS FOR PREPARATION OF FINANCIAL STATEMENTS. 3.1 Basis for the preparation The Preparation of interim financial statements Interim Financial Statements These interim financial statements are prepared in accordance with Thai Accounting Standard No. 34 (revised 2018) “Interim Financial Reporting”, and the requirements of the Securities and Exchange Commission (SEC). The interim financial statements are intended to provide information additional to that included in the latest annual financial statements. Accordingly, they focus on new activities, events, and situations and not intended to re-emphasis on the information previously reported. The interim financial statements should therefore, be read in conjunction with the financial statements for the year ended December 31, 20182022. The interim financial statements have been prepared on a historical cost basis except where otherwise disclosed in the accounting policies. The interim financial statements in Thai language are the official statutory financial statements of the Company. The interim financial statements in English language have been translated from the financial statements in Thai language version. 3.2 Thai Financial Reporting Standards reporting standards that become became effective in the current year period During the period, the Company and its subsidiaries have Group has adopted the revised and new financial reporting standards and interpretations (revised 2018) including new accounting treatment guidancestandards, which are effective for fiscal years beginning on or after January 1, 20192023. These This revision is for the financial reporting standards were aimed at alignment to be clearer and more appropriate and to conform with international financial reporting standards. Such revision does not affect the corresponding International Financial Reporting Standards with most principles of the changes standards and clarifications directed towards disclosures in does not affect the notes to users of the financial statementsreporting standards. The adoption of these financial reporting standards does not have any significant impact on the Company and its subsidiaries’ financial statements. However, statements in the new standard involves changes to key principles, as summarized belowcurrent period.

BASIS FOR PREPARATION OF FINANCIAL STATEMENTS. 3.1 2.1 Basis for the preparation of interim financial statements These interim financial statements are prepared in accordance with Thai Accounting Standard No. 34 (revised 2018) Interim Financial Reporting, and the requirements of the Securities and Exchange Commission (SEC). The interim financial statements are intended to provide information additional to that included in the latest annual financial statements. Accordingly, they focus on new activities, events, and situations and not intended to re-emphasis on the information previously reported. The interim financial statements should therefore, be read in conjunction with the financial statements for the year ended December 31, 2018. The interim financial statements have been prepared on a historical cost basis except where otherwise disclosed in the accounting policies. The interim financial statements in Thai language are the official statutory financial statements of the Company. The interim financial statements in English language have been translated from the financial statements in Thai language version. 3.2 2.2 Thai Financial Reporting Standards that become effective in the current year During the period, the Company and its subsidiaries have adopted the revised and new financial reporting standards and interpretations (revised 2018) including new accounting treatment guidance, which are effective for fiscal years beginning on or after January 1, 2019. These financial reporting standards were aimed at alignment with the corresponding International Financial Reporting Standards with most of the changes and clarifications directed towards disclosures in the notes to financial statements. The adoption of these financial reporting standards does not have any significant impact on the Company and its subsidiaries’ financial statements. However, the new standard involves changes to key principles, as summarized below.

BASIS FOR PREPARATION OF FINANCIAL STATEMENTS. 3.1 2.1 Basis for the preparation of interim financial statements These interim financial statements are prepared in accordance with Thai Accounting Standard No. 34 (revised 2018) “Interim Financial Reporting”, and the requirements of the Securities and Exchange Commission (SEC). The interim financial statements are intended to provide information additional to that included in the latest annual financial statements. Accordingly, they focus on new activities, events, and situations and not intended to re-emphasis on the information previously reported. The interim financial statements should therefore, be read in conjunction with the financial statements for the year ended December 31, 20182019. The interim financial statements have been prepared on a historical cost basis except where otherwise disclosed in the accounting policies. The interim financial statements in Thai language are the official statutory financial statements of the Company. The interim financial statements in English language have been translated from the financial statements in Thai language version. 3.2 Thai 2.2 Financial Reporting Standards reporting standards that become became effective in the current year period During the period, the Company and its subsidiaries have adopted the revised and new financial reporting standards standards, interpretations and interpretations (revised 2018) including new the accounting treatment guidance, which are effective for fiscal years beginning on or after January 1, 20192020. These financial reporting standards were aimed at alignment with the corresponding International Financial Reporting Standards with most of the changes and clarifications directed towards disclosures in clarifying accounting treatment and providing accounting guidance for users of the notes to financial statementsstandards. The adoption of these financial reporting standards does not have any significant impact on the Company and its subsidiaries’ financial statements. HoweverExcept, the new standard involves changes to key principles, as summarized below.. A set of TFRSs related to financial instruments, which consists of five accounting standards and interpretations, as follows:

BASIS FOR PREPARATION OF FINANCIAL STATEMENTS. 3.1 Basis for the preparation of interim financial statements These interim financial statements are prepared in accordance with Thai Accounting Standard No. 34 (revised 2018) Interim Financial Reporting, and the requirements of the Securities and Exchange Commission (SEC). The interim financial statements are intended to provide information additional to that included in the latest annual financial statements. Accordingly, they focus on new activities, events, and situations and not intended to re-emphasis on the information previously reported. The interim financial statements should therefore, be read in conjunction with the financial statements for the year ended December 31, 2018. The interim financial statements have been prepared on a historical cost basis except where otherwise disclosed in the accounting policies. The interim financial statements in Thai language are the official statutory financial statements of the Company. The interim financial statements in English language have been translated from the financial statements in Thai language version. 3.2 Thai Financial Reporting Standards that become effective in the current year During the period, the Company and its subsidiaries have adopted the revised and new financial reporting standards and interpretations (revised 2018) including new accounting treatment guidance, which are effective for fiscal years beginning on or after January january 1, 2019. These financial reporting standards were aimed at alignment with the corresponding International Financial Reporting Standards with most of the changes and clarifications directed towards disclosures in the notes to financial statements. The adoption of these financial reporting standards does not have any significant impact on the Company and its subsidiaries’ financial statements. However, the new standard involves changes to key principles, as summarized below. TFRS 15 supersedes TAS 11 Construction Contracts and TAS 18 Revenue, together with related Interpretations. Entities are to apply this standard to all contracts with customers unless those contracts fall within the scope of other standards. The standard establishes a five-step model to account for revenue arising from contracts with customers, with revenue being recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The standard requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model. 3.3 Financial reporting standards that will become effective in the future During the period, the Federation of Accounting Professions issued the financial reporting standard and accounting guidance for financial instruments, which is effective for fiscal years beginning on or after january 1, 2020. Key principles of these standards are summarized below. The accounting guidance for financial instruments and Presentation for Insurance business Accounting practice was adjusted to have close content with TFRS 9 by dividing into 4 parts as follows: 1. The recognition of transaction and valuation of financial instrument which is developed closely to Thai Accounting Standard No.105 (revised 2016) accounting for investment in debt securities and equity securities and Thai Financial Reporting Standard No.9 financial instrument. 2. Impairment of financial asset which has content close to Thai Financial Reporting Standard No.9 financial instrument. 3. Accounting to prevent risk with content close to Thai Financial Reporting Standard No.9 financial instrument. 4. Information disclosure of financial instrument with content similar to Thai Financial Reporting Standard No.7 disclosure of financial instrument information. As the lease is significant transaction in many business in many industries. It’s significant that user of financial statement should receive information on activity of the lease completely and able to compare which the former accounting method for lease agreement under accounting standard No.17 regarding lease agreement require the lessee and lessor to classify lease agreement as financial lease or operating lease and record the account for both lease agreement differently. Such accounting method can’t respond to the needs of the financial statement users as the accounting method does not objectively represent for the lease transaction in every case. For the lessee to recognize assets and liabilities that arise from operating lease which affects the lease agreement to be recognized as asset and liabilities in the statement of financial position. The use of asset and commitment that arises from the lease agreement under the definition of asset and liabilities affect the significant financial ratio to be distorted. New accounting method under the financial reporting standards No.16 lease agreement requires the lessee to recognize the right to use asset as asset in the financial statements and recognize commitment that arises from lease agreement in the financial statements. Such accounting method affects the asset presentation and liabilities of the lessee as objective representation as well as increase the disclosure of information that reflects the financial risk and capital money of the lessee. At present, the management of the Company and its subsidiaries are evaluating the impact of this standard to the financial statements in the year when it is adopted. 3.4 Reporting currency in interim financial information These interim financial information are presented in Thai Baht which is different from the functional currency of the Company, which is japanese Yen (jPY). The presentation is in Thai Baht in accordance with the regulatory requirements in Thailand. The jPY functional currency interim financial information are translated into the Thai Baht presentation currency interim financial information at the rate of exchange prevailing at the end of reporting period in respect of assets and liabilities, and at a rate that approximates the actual rate at the date of the transaction in respect of revenues and expenses, differences arising from currency translations have been shown as “Exchange differences on translating financial statements” in the statements of comprehensive income and included under “Other components of shareholders’ equity” in the statements of financial position. 3.5 Use of estimates and judgments by the management The preparation of interim financial information in conformity with TFRS issued by the Federation of Accounting Professions and accounting practices generally accepted in Thailand also requires the Company’s management to exercise judgments in order to determine the accounting policies, estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. The estimates and associated assumptions are based on factors that are considered to be relevant. Although these estimates are based on management’s reasonable consideration of current events, actual results may differ from these estimates.

BASIS FOR PREPARATION OF FINANCIAL STATEMENTS. 3.1 2.1 Basis for the preparation of interim financial statements These interim financial statements are prepared in accordance with Thai Accounting Standard No. 34 (revised 2018) “Interim Financial Reporting”, and the requirements of the Securities and Exchange Commission (SEC). The interim financial statements are intended to provide information additional to that included in the latest annual financial statements. Accordingly, they focus on new activities, events, and situations and not intended to re-emphasis on the information previously reported. The interim financial statements should therefore, be read in conjunction with the financial statements for the year ended December 31, 20182019. The interim financial statements have been prepared on a historical cost basis except where otherwise disclosed in the accounting policies. The interim financial statements in Thai language are the official statutory financial statements of the Company. The interim financial statements in English language have been translated from the financial statements in Thai language version. 3.2 Thai 2.2 Financial Reporting Standards reporting standards that become became effective in the current year periods During the periodperiods, the Company and its subsidiaries have adopted the revised and new financial reporting standards standards, interpretations and interpretations (revised 2018) including new the accounting treatment guidance, which are effective for fiscal years beginning on or after January 1, 20192020. These financial reporting standards were aimed at alignment with the corresponding International Financial Reporting Standards with most of the changes and clarifications directed towards disclosures in clarifying accounting treatment and providing accounting guidance for users of the notes to financial statementsstandards. The adoption of these financial reporting standards does not have any significant impact on the Company and its subsidiaries’ financial statements. HoweverExcept, the new standard involves changes to key principles, as summarized below.. A set of TFRSs related to financial instruments, which consists of five accounting standards and interpretations, as follows: