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Patkol Public Company Limited 3. The period of preferred shares is 2 years from the issuing date and as at the expiry date if the market price of preferred shares is lower than the issued price, the Company agrees to compensate the difference to the investors within 14 business days from the expiry date of the preferred shares, whether the preferred shares are converted to ordinary shares at the expiry date or not. The compensation will not be enforced if the preferred shares are converted to ordinary shares before the expiry date. 4. The shareholders of the preferred shares can convert all or part of the shares to ordinary shares at the ratio of 1 preferred share : 1 ordinary share. The conversion can be done quarterly since the issuing and the offering date. 5. The rights of preferred shares and right on receive incompleted payment of dividend shall not be enforced when the conversion of preferred shares is completed, the rights shall be enforced as the same as ordinary shares. 6. One preferred share has one voting right. 7. The preferred shares will not be listed on the SET. From such issuance of convertible preferred shares which held as mixed financial instruments including by financial liabilities, therefore, such financial instruments after deduction with share issuance expenses consist of ; Amount of Baht Composition of financial liabilities 117,845,894 Composition of capital 643,139 Total benefits derived from convertible preferred shares 118,489,033 The Company calculated the composition of financial liabilities from issuance of convertible preferred shares by fair value at the discount rate of 7.5% per annum. The Company has interest expenses from such financial instrument for the year ended December 31, 2007 amount of Baht 3.92 million. 18.3 Warrants On September 22, 2001, the Company issued 53 million units of warrants in the form of specified the name of the holders are negotiable with 3 years maturity from the issuance date to the existing shareholders. One unit of warrant has a right to purchase one ordinary share at Baht 5.00 each with the exercise period on every 25 of February, May, August and November. The first exercise date is on November 25, 2004 until August 25, 2007 and the last exercise date will be on September 21, 2007. On September 7, 2007, there is exercise right of warrants for 1 unit.

19. LEGAL RESERVE According to the Public Company Limited Act. B.E. 2535, the Company has to set aside its reserve as a legal reserve not less than 5% of the annual net profit deducted by the total accumulated deficit brought forward (if any) unit the reserve reaches an amount not less than 10% of the authorized share capital. Such legal reserve is not available for dividends distribution. Annual Report 2007

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As of 31 December 2007

Patkl 07  

PATKL_2007 PATKOL PCL Annual Report 2007

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