The share price of SET-listed Group Lease Plc (GL) soared yesterday after a Singaporean audit firm said it had found no evidence of irregularities in the company's loan transactions.
GL shares closed yesterday at 6.65 baht, up 1.5 baht (29.1%), in trade worth 69.5 million baht.
"To comply with the Securities and Exchange Commission's (SEC) letter, the company has reissued its 2017 financial statement in accordance with accounting standards," GL said in a release. "Compared with the original 2017 financial statement, the reissued 2017 financial statement shows an increase (though still a loss) in net income, from minus 1.8 billion baht to minus 1.61 billion.
"All interest income related to the disputed loans have been eliminated, resulting in lower interest income for the 2016 and 2017 periods, and any previously received interest payments have now been recorded as principal repayments. The result is a reduction in interest income by 233.78 million baht in 2016 and by 177.25 million in 2017."
Since the company has eliminated the income related to these loans and recorded interest received as principal repayments, the result is that there is less outstanding principal as of Dec 31, 2017.
"Previously, we recorded an allowance for loan and interest receivables for the full amount of outstanding principal. The now smaller amount of outstanding principal has resulted in a smaller allowance for the disputed loans and loan and interest receivables of the remaining uncollected principal," said GL.
The result is a reduction of 392.74 million baht in expense for the allowance of disputed loans and for loan and interest receivables.
Earlier, the SEC had ordered GL to rectify its financial statements as some loan receivables were in question.
GL's share price had fallen steeply late last year amid the regulatory scandal. GL is a digital finance company specialising in hire purchase for Japanese motorcycle brands.
