Bangkok, 23 June 2017 ? The SEC has ordered Energy Earth Public Company Limited (EARTH) to have a special audit on the advanced payments for goods and purchase deposits and disclose the results of the audit within 30 days.

On 20 June 2017, EARTH disclosed information through the Stock Exchange of Thailand (SET) Electronic Information System that it had defaulted on the bills of exchange (B/E) and delayed repayment of overdue debts to financial institutions, causing the company to be under debenture default condition. The amount of debts expected to be overdue by the end of June 2017 is approximately 7 billion baht or approximately 20 percent of the total assets. EARTH attributed the problems to insufficient cash flow and review of credit lines of financial institutions. EARTH is currently seeking a tangible approach to the debt repayments. 

The SEC viewed that EARTH ' s core business is coal trading for which liquidity management is crucial. And in the past EARTH used loans from financial institutions and debt instrument issuance as its funding sources for making advanced payments and purchase deposits. The value of such transactions has increased significantly from 2015 by a 58 percent increase, and the balance at the end of the first quarter of the fiscal year 2017 accounted for 45 percent of the total assets and is thus considered EARTH's core assets. Accurate and complete information on such transactions is  important for the securities holders and general investors and a key factor that will support EARTH ' s fundraising for returning to normal business operation.

The SEC, therefore, by virtue of Section 58 (3) of the Securities and Exchange Act B.E. 2535 (1992), orders EARTH to arrange a special audit on the advanced payments for goods and purchase deposits by an auditor from any of the Big Four audit firms. The special audit report must be submitted to the SEC and disclosed through the SET Electronic Information System within 30 days.
 

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