Bangkok, June 24, 2015 - The SEC filed a criminal complaint with the Department of Special Investigation (DSI) against directors and executives of G Steel PCL (GSTEL) and G J Steel PCL (GJS) for committing or permitting another to act so as to falsify the accounts of GSTEL and GLS by making false entries concerning the purchase of raw materials from overseas suppliers materially lower than the actual value to deceive any persons about financial condition and performance of the companies.  The said persons were (1) {A}, GSTEL director and executive & GJS director, (2) {B}, GSTEL executive, (3) {C}, GSTEL executive and (4) {D}, GJS director and executive.

The SEC found that in early 2008, GSTEL and GJS, its subsidiary, made advance purchase orders of a large amount of steel from overseas suppliers at a market price at that time. Later, steel price dropped sharply causing GSTEL and GJS to realize high losses as production cost was high while the products were sold at lower market price. To avoid realization of the losses, the above four persons ordered or permitted or facilitated recording of account entries of overseas trade accounts payables lower than actual liabilities. In case of GSTEL, the said entries were found in the following financial statements: THB 85 million in 2008, THB 1,144 million in Q1/2009, THB 2,131million in Q2/2009, THB 2,072 million in Q3/2009, and THB 1,987 million in 2009, respectively. Meanwhile, in case of GJS, the said entries were found in the following financial statements: THB 378 million in Q1/2009, THB 800 million in Q2/2009, THB 1,010 million in Q3/2009, and THB 1,023 million in 2009, respectively.

Their actions were in violation of Sections 312 and 315 of the Securities and Exchange Act B.E. 2535 (1992) (SEA) in conjunction with Sections 83 and 86 of the Penal Code. Besides, the persons named in the criminal complaint filed by the SEC are deemed as having untrustworthy characteristics of director and executive of a publicly held company. This caused the termination of their directorship and executive positions by the provision of the SEA.

In any case, the filing of a criminal complaint commences the criminal justice administration; whereby the court will judge the case accordingly.

Information contained in this news release is as of the aforementioned release date. For those who wish to see current status of the matter,
please go to compliant filed with inquiry officer