11.1 Separate financial statement
The Company has leasehold rights to land which it leases from the Privy Purse Bureau to construct a residential building (Mahadlekluang project). The residential building is belonged to the Privy Purse Bureau and the Company has to comply with conditions stipulated in the agreement as stated in note 32.2.1. In 2008, the Company entered into an agreement with an overseas investor holding shares of a subsidiary (SG Land Company Limited) that the leasehold right and others will be sold to the subsidiary in amount of Baht 280 million which equivalently belong to the Company and the overseas investor (Baht 140 million each). The Company partly received payment from the subsidiary in amount of Baht 129.5 million. The agreement of leasehold right transfer is in the process. As at December 31, 2011, the Company recorded such amount as deposit from sale of project (liabilities in the statement of financial position). As at December 31, 2011 and 2010, the Company has placed the land leasehold right received from the Privy Purse with a total net book value of Baht 49.5 million and Baht 48.9 million, respectively as collateral for long-term loans from financial institutions as stated in note 17. 11.2 Subsidiary (1) The subsidiary has leasehold rights to land which it leases since 1993 from the Privy Purse Bureau
which was recorded as repaid rental - land. The subsidiary constructed an office building on the leased land and the office building is belonged to the lessor since the construction date. The subsidiary has the right to use such office building as long as the leased term of land. The subsidiary recorded office building for rent as prepaid rental – building. (2) The subsidiary has leasehold rights to land from a company to construct office building for rent and leasehold rights to land from individuals to construction factory for lease as stated in note 12. (3) The subsidiary has leasehold rights to factory from the Industrial Estate Authority of ThailandL In the second quarter of 2011, the subsidiary has amended the agreement made with the Industrial Estate Authority of Thailand since 2004 by changing lease term of a factory from 30 years to 15 years, resulting the remaining lease term is approximately 7 years. The subsidiary has received rental returned from such agreement amendment in amount of Baht 9.4 million. The subsidiary has placed factory leasehold rights under agreements with the Industrial Estate Authority of Thailand, and land leasehold rights under agreements with individuals, the Privy Purse Bureau and a company with a total net book value as at December 31, 2010 and 2010 amount of Baht 543.6 million and Baht 589.9 million, respectively as collateral for bank overdraft facilities, long-term loans from financial institutions and debt restructuring payable
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Thai Factory Development Public Company Limited