SANYO SPECIAL STEEL CO., LTD., a major shareholder of the Applicant (Parent Company), has a policy to improve the efficiency of its business in Thailand. Therefore, Parent Company wishes the Applicant to provide loan service to an affiliated company located in Thailand to be convenient for business operation.
In this present, Thai economics is not stable and it is affecting to the commercial bank to be more careful in consideration of application of loan. In addition, the rules and the regulations of the commercial bank are more rigid, complicated and take time for the operator who needs money for their business. Thus, the operator may shortage of capital fund for using in their business.
In this circumstance, the affiliate company is facing this problem while the needs of capital fund are increasing every day. In addition, the applicant has capability and retained earning more than any other affiliate company therefore the applicant wishes to be the financial centre for the affiliate company by providing loan to the affiliate company for reducing the loan process and time-consuming and will be liquid the cash flow of the affiliate company. Moreover, such service would generate interest revenue to the Company. At present, the Applicant has the inappropriate retained earnings on December 31, 2014 at Baht [] which will be divided to credit line of loan at Baht [].