26 March 2010
Subject: Additional information for the cancellation of the Capital Reduction
To: The President The Stock Exchange of Thailand
Copy to : Secretary-General The Office of the Securities and Exchange Commission
Refer to: Resolution of the Board of Directors Meeting No. 3/2010 dated March 25, 2010
As the Board of Directors Meeting of RS Public Company Limited (the "Company") No. 3/2010 held on 25th March 2010, has passed the resolutions to propose the Shareholders' Meeting to be held on 28th April 2010 for the approval of the cancellation of the Company's capital reduction of 50,000,000 shares, the Company would like to provide additional information regarding the background information of the aforesaid cancellation of the Capital Reduction as follows:
Background Information :
According to the resolutions of the Extraordinary General Meeting of Shareholders No. 1/2010 dated 12th February 2010, approved the reduction of the Company's registered and paid-up capital by decreasing of 50,000,000 shares to partially compensate some of the Company's accumulated losses based on the reviewed financial statement as at 30th September 2009.According to the approval of the Extraordinary General Meeting of Shareholders No. 1/2010 dated 12th February 2010, the Company allocated the share premium to compensate the Company's accumulated losses as the following details:-
Accumulated losses as of 30th September 2009 Less - Premium on Share Capital Net
In addition, the Company's fourth quarter 2009 operating results reported net profit of Baht 90.91 Million. Consequently, the Company's accumulated losses materially decreased. The Company's accumulated losses as of 31st December 2009 was Baht 43.08 Million (after the allocation of the aforesaid share premium). Hence, the effect of the Capital Reduction by decreasing of 50,000,000 shares (or equivalent to Baht 50,000,000) may not be as effective as previously expected. Furthermore, to avoid the effect on number of shares held by each shareholder, therefore, the Company propose the Shareholders' Meeting to approve the cancellation of the reduction of the Company's registered and paid-up capital by decreasing of 50,000,000 shares.
Please be informed accordingly.
Yours faithfully,
(Mr. Darm Nana)
Chief Financial Officer
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