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Other Information INTOUCH HOLDINGS PLC 289 Company Overview Our Business Corporate Governance Sustainability Development Financial Report Other Information INTOUCH HOLDINGS PLC. INTOUCH OTHER INFORMATION Annual Report and Sustainability Report 2020 INTOUCH HOLDINGS PLC. Back to Contents Company Overview Our Business Corporate Governance Sustainability Development Financial Report Other Information On 8 July 2011, Mr. Supong Limtanakool has appealed the judgment to the Supreme Legal Disputes Administrative Court. on 23 September 2011, the Company and THAICOM submitted the appellate answer to Legal Dispute of the Company the court. The Company has legal disputes in relating to satellite business as a co-party with At present, the case is pending and in consideration of the Supreme Administrative Court. Thaicom Plc. (THAICOM) as follows; 2) Case in which THAICOM and INTOUCH to jointly submit the dispute to Thai 1) Case in which the Administration Court ordered THAICOM to be made a Arbitration Institute in regards to Ministry of Digital Economy and Society defendant jointly with Ministry of Information and Communication Technology notifying that Thaicom 7 and Thaicom 8 satellites were the satellites under (currently known as Ministry of Digital Economy and Society (MDES)) and the Operating Agreement on Domestic Communication Satellite National Telecommunications Commission (NTC) On 5 October 2017, the Company and THAICOM received a notice from Ministry of On 19 April 2007, Mr. Supong Limthanakul brought legal proceeding in the Central Digital Economy and Society (MDES) stating that Thaicom 7 and Thaicom 8 satellites Administrative Court against National Telecommunications Commission (NTC) and were the satellites under the concession agreement on domestic communication satellite Ministry of Information and Communication Technology (Currently Ministry of Digital dated 11 September 1991 between Intouch Holdings Plc. (the Company) (which is a major Economy and Society) (MDES) and NTC as the Black case no 546/2550 (Red case shareholder of THAICOM holding in total 41.14%) and MDES (formerly known as the no. 887/2554), claiming that the two government agencies were negligent in the Ministry of Information and Communication Technology) (the “Operating Agreement”) performance of its duty by not investigating whether THAICOM was carrying on and the Company established THAICOM to operate and compliance with the Operating telecommunication business in breach of the laws after the sale of the Company’s shares Agreement e.g. transfer of ownership and delivery of assets, procurement of the backup to the new shareholders. satellite(s), payment of overdue revenue sharing, and property insurance. On 28 April 2009, the Central Administrative Court issued an order making THAICOM The Company’s Board meeting no. 9/2017 on 18 October 2017 and THAICOM’s Board to be as the defendant no.4 and THAICOM filed a statement of defence and supporting meeting no. 11 October 2017 on 24 October 2017 considered such notice and consulted evidence with the Central Administrative Court in July 2009. with the legal advisor of the Company and THAICOM, and then opined that Thaicom 7 and Thaicom 8 satellites under the Agreement as the procedures of Thaicom 7 and On 20 July 2009, the Central Administrative Court issued an order making the Company Thacom 8 satellites fell under the scope of license received from the National Broadcasting to be as the defendant no.5 and the Company filed a statement of defence and supporting and Telecommunications Commission. Therefore, the Company and THAICOM have evidence with the Central Administrative Court in September 2009. a different opinion from MDES, resulting from the terms of and compliance with the On 10 June 2011, the Central Administrative Court issued its judgement dismissing Operating Agreement and that the parties thereto have not been able to resolve it, for the case on the ground that THAICOM is not an alien under the Foreign Business Act further settlement. This is in accordance with Clause 45.1 of the Operating Agreement. 1999 and that MDES was not negligent in performing its duty in not terminating the The Company THAICOM have jointly submitted the dispute to the Arbitration Institute Agreement with THAICOM. on 25 October 2017, as appeared in the Black case no. 97/2560. Form 56-1 One Report for the year 2020 (Annual Report) 2020 the year for One Report 56-1 Form 290 Back to Contents 291 Company Overview Our Business Corporate Governance Sustainability Development Financial Report Other Information At the present, this dispute is on Arbitration process. THAICOM does not have any duty to Legal Proceeding Relating to Other Businesses perform as MDES’s request until an arbitration award is rendered. However, this dispute does not affect to the service providing under the Operating Agreement because 1) The case between ITV Plc and PMO THAICOM has fully complied with the terms and conditions of the Agreement and has The Office of the Permanent Secretary, Prime Minister’s Office (PMO) sent ITV Plc. not proceed with any operations against or violating the Operating Agreement. (ITV) a notice to terminate the Operating Agreement and demanded ITV to cease its 3) Case in which the Ministry of Digital Economy and Society in relating broadcasting business using the UHF system from 7 March 2007. ITV then summitted a dispute to Thai Arbitration Institute against PMO, regarding the consideration whether Thaicom 5 Satellite the termination is unlawful or not. The dispute was considered as the Black case no. INTOUCH HOLDINGS PLC. INTOUCH In November 2020, the Company and THAICOM received a notice to inform that 46/2550 (the Red case no.1/2559) and then, the arbitration tribunal rendered an award Ministry of Digital Economy and Society (MDES) had proposed a dispute to Thailand on 14 January 2016 that the termination of PMO is unlawful and has ordered PMO to Arbitration Center as the Black case no. A27/2563, requesting THAICOM and INTOUCH pay compensation for the damages in the total amount of 2,890,345,205.48 Baht to ITV for the following claims; (1) the replacement satellite of Thaicom 5 or the compensation and ITV shall pay the unpaid difference of the operating fee of 2,886,712,328.77 Baht at the value of 7.79 billion baht plus interest of 7.5% per year from 30 October 2020 until with the late interest of 3,632,876.77 Baht. The total amount that ITV shall pay to PMO full payment, (2) a fine of 4.98 million baht (for a period from 25 February 2020 to 30 is 2,890,345,205.48 Baht. Since ITV and PMO are obligated to pay the equal amount of October 2020) plus interest of 7.5% per year and (3) a fine from 1 November 2020 until 2,890,345,205.48 Baht to each other, the obligations therefore could be set-off. In this delivery of replacement satellite or full payment of compensation. regard, ITV and PMO shall release each other from obligations. THAICOM has already fulfilled the obligations of the concession and disagreed with On 29 April 2016, PMO as the plaintiff has submitted a petition to the Central Administration the claims of MDES. With this regards, the Company and THAICOM jointly appointed Court (CAC) requesting to revoke the Arbitration award of the Black case no.46/2550 the legal representative to process the defending of the dispute according to the legal (the Red case no.1/2559) with arguments that the award is not comply with the arbitration procedures. The case is now in the beginning process of the arbitration. clause and out of scope of arbitration agreement and the award is contrary to public order or morals. The CAC accepted the PMO’s petition as the Black case no. 620/2559 Legal Dispute of the Company’s subsidiaries and associates and ITV summitted a statement of defense to the CAC against this case on 9 May 2017. Legal Proceeding Relating to Satellite & International Business On 17 December 2020, the CAC issued its judgement for the Black case no. 620/2550 (Red case no. 1948/2563) dismissing the case with the reason that there is no legal ground to Please find the details of legal disputes that the Company and THAICOM jointly have revoke the arbitration award pursuant to the Article 40 of the Arbitration Act B.E. 2545. co-party in relating to Satellite business in 1), 2) and 3) above. (Details are shown the topic “Legal Dispute” of the form 56-1 One Report for the year 2020 of On 15 January 2021, PMO has submitted an appeal against the Central Administrative THAICOM at www.set.or.th.) Court’s decision to the Supreme Administrative Court. Legal Proceeding Relating to Wireless Communications Business At the present, the case is in consideration of the Supreme Administrative Court. Advanced Info Service Public Company Limited (AIS) is an associated company of INTOUCH. AIS’s disputes may significantly affect to assets and business of the Company. Details are shown in the form 56-1 One Report for the year 2020 of AIS at www.set.or.th. Back to Contents Company Overview Our Business Corporate Governance Sustainability Development Financial Report Other Information Principal Assets used in Business Operations Assets used in Business Operations Fixed assets Investment The Company itself has no significant fixed assets because all the major ones, As the Company is a holding company, its principal assets are investments which such as property, plant and equipment, and intangible assets under operating are in subsidiaries and an associate measured at equity method and in venture agreements, belong to its subsidiaries. capital measured at fair value through profit or loss. As of 31 December 2020, the separate financial statements showed total investment in subsidiaries and an • Property, plant and equipment associate and investment in venture capital of 35,891 million baht and 975 million As of 31 December 2020, 2019 and 2018 the Company, along with its subsidiaries, baht, respectively, as shown in the table below.
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