The Stock Exchange of Thailand (SET) has ordered International Engineering Plc to clarify a series of doubtful issues in its second-quarter financial statement.

The SET found that Crystal Agro (CTA), which has a two-year contract with International Engineering to sell it Bt60 million worth of wood, is wholly owned by Suwit Witchavuth, who has the same surname as International Engineering's chief executive.

International Engineering paid a Bt20-million advance to CTA, on condition that the latter proportionally transform the advance payment into company equity no later than this November. The money has been used for a concession on a cultivation project in Cambodia involving plants that can be used as raw materials for ethanol production.

International Engineering also entered into an agreement with local firm Siam Stone Architect (SSA) to sell it Bt220 million worth of wood.

"The SET, therefore, requires International Engineering to clarify the names of its shareholders and the percentage of their shareholding, plus the names of the CTA and SSA directors on the date of the transactions.

As the transactions with CTA and SSA might be classified as connected, the reasons [for the transactions] must be explained," said the SET.

In regard to International Engineering's entering into a licensing agreement for the use of computer programmes to serve "mobilecasting" using DFuze technology (DFT), the SET has asked the company to list the benefits it derived from signing the agreement with the agent

instead of with the copyright owner.

DFT is an authorised agent of the copyright owner in Israel.

The SET has also ordered International Engineering to clarify who DFT's shareholders are and their stakes, the names of the directors and their nationalities on the date of the transaction.

Moreover, the SET wants International Engineering to summarise the scope of services it obtained from the Septagon Group after International Engineering appointed it to be a financial adviser on January 1 and before the contract was terminated on September 1.

A Bt64.68-million non-incurred loss from the valuation of available-for-trade securities is one of the main reasons for the company's second-quarter net loss.

The SET has asked the company to clarify both the identities of the authorised personnel and the criteria for classification in investment in both trading and available-for-sale securities.

In the quarter ended June 30, International Engineering incurred a net loss of Bt192.85 million, compared with a Bt10.33-million net profit in the same period last year.