The “C” Caution Sign Keeps Coming! 7 Companies Have Been Awarded!

As of August 14, 2018, SET has been given a “C” Caution sign to a total of 7 companies, including MPIC, NEP, NOK, NBC, NEWS, PE and TSI.

Today (August 14, 2018) SET has updated another four companies to “C” (caution) sign list. The signs were given mainly to the company that the shareholders’ equity were 50% less than the paid-up capital.Together with these new four companies in the latest update, the list has seven companies in total as listed below:

  1. M Pictures Entertainment Public Company Limited (MPIC), whose shareholders hold about 480 million baht, while paid-up capital is 1.3 billion baht (as of June 30, 2018).
  2. Nep Realty and Industry Public Company Limited (NEP), whose  shareholders hold about 820 million baht, while paid-up capital is 2.3 billion baht (as of June 30, 2018).
  3. Nok Airlines Public Company Limited (NOK), whose  shareholders hold about 406 million baht, while paid-up capital is 2.2 billion baht (as of June 30, 2018).
  4. Nation Broadcasting Corporation Public Company Limited (NBC), whose  shareholders hold about 53 million baht, while paid-up capital is 535 million baht (as of June 30, 2018).
  5. News Network Corporation Public Company Limited (NEWS), whose  shareholders hold about 38 million baht, while paid-up capital is 67 billion baht (as of June 30, 2018).
  6. Premier Enterprise Public Company Limited (PE), whose  shareholders hold about 86 million baht, while paid-up capital is 400 million baht (as of June 30, 2018).
  7. The Thai Setakij Insurance Public Company Limited (TSI), whose  shareholders hold about 188 million baht, while paid-up capital is 1 billion baht (as of June 30, 2018).

 

The conditions on receiving the “C” sign are:

  1. The shareholders’ equity is less than 50% of paid-up capital deducted by discount on share capital (if any).
  2. The financial institutions, securities companies, life insurance or non-life insurance companies have been publicly to rectify financial position or operating result by temporarily discontinuing their partial operation or business expansion which are significant orders.
  3. The Securities and Exchange Commission (SEC) has ordered the company to rectify financial statements or arrange a special audit.
  4. The auditor’s report issues a disclaimer opinion on the financial statements due to the limitation of reviewing or auditing scope by the company or the committee or the executives
  5. The auditor’s issues an adverse opinion on the financial statements.
  6. The bankruptcy court has accepted the company rehabilitation petition/ accept the bankruptcy petition.
  7. The listed company that has total assets or almost all of its total assets in the form of cash or short-term assets (Cash Company).

All shares with a “C” sign will be able to purchase only with Cash Balance (The process will be done through brokers by cash deposit before purchasing.) from the effective date until the problems has been solved.

SET will announce the names of listed companies one day prior to the posting of “C”. Such company has to provide information and plan to resolve the issue within 15 days after the “C” sign has been posted and every quarter until the company can completely rectify their issues. This is in line with general criteria of other alert signs.