Annual Report รายงานประจำาปี2554ust.co.th/upload/financial/98_13291.pdfTo be a modern integrated logistics ... 28.68 12.35 16.30 22.08 ... addition, the

United Standard terminal pUblic company limited

บริษัท ยูไนเต็ด แสตนดาร์ด เทอร์มินัล จำากัด (มหาชน)

รายงานประจ ำ าปี 2554

A n n u a l R e p o r t

UST is a public company which offers comprehensive services for transportation loading and storage of import and export commodities. We have the trust and confidence of our customers due to our :•Concernforthequality,safetyandtimelycompletionofourservices•Efficiencyofteamwork,equipmentandadvanceinformationtechnology

system•Standardwarehouseandwharfterminalinstrategiclocationthatare

flexible to adopt multimodal transportation

MissionTo be a modern integrated logistics service provider that add value to customers and share value to employees and society

Vision

ContentsFinancial Highlights

General Company Information

Message from Board of Directors

Audit Committee Report

Key Financial Results

Nature of Business

Revenue Structure

Board of Directors of Company

Major Shareholders

2

3

6

8

10

12

13

14

19

Dividend Policy

Organization Chart

Management Structure

Good Corporate Governance

Internal Control

Connected Person and Transaction

Report of the Board of Director’s Responsibility in the Financial Statements

Management’s Discussion and Analysis

Report of Certified Public Accountant

Financial Statements

Auditor Remuneration

20

21

22

28

33

34

43

44

46

48

86

Financial HighlightsFor the year ended 31 December

2011 2010 2009 2008

FINANCIALPOSITION

Total Assets (Thousand Baht) 1,502,948 1,443,345 1,547,907 1,607,628

TotalLiabilities (Thousand Baht) 378,976 437,305 572,181 656,417

TotalShareholders’Equity (Thousand Baht) 1,123,972 1,006,039 975,726 951,211

IssuedandPaid-upShareCapital (Thousand Baht) 387,718 387,718 387,718 387,718

OPERATIONRESULTS

Service Revenues (Thousand Baht) 1,266,872 915,413 996,217 985,657

Total Revenues (Thousand Baht) 1,276,968 1,013,397 1,009,921 998,542

CostofServices (Thousand Baht) 903,531 802,379 833,840 768,040

Gross profit (Thousand Baht) 363,341 113,034 162,377 217,617

NetProfit(loss) (Thousand Baht) 130,567 112,939 61,548 98,904

ATTRIBUTABLETO:

EquityholdersoftheCompany (Thousand Baht) 85,721 101,893 48,282 78,753

Minority interest (Thousand Baht) 44,846 11,046 13,266 20,151

FINANCIALRATIO

GrossProfitmargin (%) 28.68 12.35 16.30 22.08

NetProfitMargin (%) 6.71 10.05 4.78 7.89

ReturnonEquity (%) 7.63 10.13 4.95 8.28

Return on Assets (%) 5.70 7.06 3.12 4.90

InterestCoverageRatio (Time) 17.91 15.31 6.84 6.21

DebttoEquity (Time) 0.34 0.43 0.59 0.69

PERSHAREVALUES

Earnings(Loss)perShare (Time) 2.21 2.63 1.25 2.03

BookValueperShare (Baht) 25.96 23.60 20.84 24.53

Dividend per Share (Baht) 0 1.00 0.75 0.75

02

Annual Report2011

United Standard Terminal Public Company Limited

General Company Information

United Standard Terminal Public Company LimitedRegistrationNo. : 0107537000530

TypeOfBusiness : TransportationandLogistic

Address Headoffice/SamutprakarnWarehouse 78/2Moo2SoiWatkaeSuksawadRoad, Prasamutjedi,Samutprakarn10290 Telephone:0-2861-7888 Fax:0-2861-7897-99

Website : Http://www.ust.co.th

RegistrationCapital : 400,000,000BahtShareCapitalRegistered 400,000,000OrdinarySharesofBaht10each

Paid-upCapital : 387,718,120Bahtissuedandfullypaid 38,771,812OrdinarySharesofBaht10each

Mitr Phol Warehouse Company LimitedRegistrationNo. : 0105517012557

TypeOfBusiness : WarehouseandTerminal

Address : Headoffice/SamutprakarnWarehouse 78/2Moo2SoiWatkaeSuksawadRoad, Prasamutjedi,Samutprakarn10290 Telephone:0-2861-7888 Fax:0-2861-7897-99

RegistrationCapital : 5,000,000BahtShareCapitalRegistered 5,000OrdinarySharesofBaht1,000each

Paid-upCapital : 5,000,000Bahtissuedandfullypaid 5,000OrdinarySharesofBaht1,000each

03

Aawthai Warehouse Company LimitedRegistrationNo. : 0105532120870

TypeOfBusiness : WarehouseandTerminal

Address : Head office

78/2Moo2SoiWatkaeSuksawadRoad, Prasamutjedi,Samutprakarn10290 Telephone:0-2861-7888 Fax:0-2861-7897-99

Laem Chabang Port Terminal PortAuthorityofThailandA4,SukhumvitRoad, Tungsukla,SrirachaChonburi20230 Telephone:033-004-888 Fax:0-33-004-899

Sriracha Warehouse

291/34Moo5Nongkham,Sriracha,Chonburi20230 Telephone:038-060-777 Fax:038-060-778

RegistrationCapital : 160,000,000BahtShareCapitalRegistered 16,000,000OrdinarySharesofBaht10each

Paid-upCapital : 160,000,000Bahtissuedandfullypaid 16,000,000OrdinarySharesofBaht10each

Guangxi Qinzhou Zhong Tai Service Co.,Ltd.TypeOfBusiness : LoadingUnloadingandWarehouse

Address : Legouoperationzone,QinzhouPort,QinzhouEconomicDevelopmentZone,Qinzhou,Guangxi,China

RegistrationCapital : 6,000,000RMB

Paid-upCapital : 11,900,000RMB

04

Annual Report2011


Other ReferencesOrdinaryShareRegistrar ThailandSecuritiesDepositoryCompanyLimited

4th,7thFloor,TheStockChangeofThailandBldg. 62RatchadapisekRoad,Klongtoey,Bangkok10110 Telephone:0-2229-2800 Fax:0-2359-1259

Auditor Mr.SirapornAuranantakul CPA(Thailand)No.3844 Ernst&YoungOfficeLimited 33 rd Floor,LakeRajadaOfficeComplex,193/136-137 RajadapisekRoad,Klongtoey,Bangkok10110 Telephone:0-2264-0777 Fax:0-2264-0789

LegalAdvisor None

Financial Advisor None

Advisor or Manager None

Under Management Agreement

05

Mr.VitoonVongkusolkit

Chairman

Message from Board of Directors

In 2011, the global economic slowdown persisted as a consequenceofthefinancialcrisisinEuropeandtheUnitedStates,whileAsianeconomies, includingThailand,witnessedsteadyandrobustgrowth.Toward theendof theyear,Thailandwas ravagedbytheworstfloodsinoverhalfacentury,causingsharpeconomiccontractionoverashortperiod,butwithoutdisruptiontobusinessofUnitedStandardTerminalPublicCompanyLimited.

In theefforts tobecomea sustainable leaderofbulkcargohandlingand terminalbulk serviceprovider, In the last year,wemainly focuson theorganizationdevelopmentwith2 strategies:1.)Developedbulkcargohandlingequipmentsforbulktoincreaseservicesefficiencyanddiversity fornewcustomerandbeable tocompetewithexistingmajorcargoterminalandtransportationofbulkmassterm.2.)Increasewarehousestandardtomeetcustomersatisfactionappropriateforbulkgoods.Bothofthesestrategieswilllean substantial benefits to UST as the business performance has been increased and at the same time in year 2011 the sugar productivity was increased28.29% thesemajor factorscauseourbusiness intransportationandhandlingvolumeincreasedupto3.52Milliontons.ThetotalrevenueofUSTwas1,276.97millionBaht,increase263.57millionBahtor20.64%ofthepreviousyear.Thecompanyprofitwas146.77millionBaht,increase44.88millionBahtor30.57%

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Annual Report2011


Mr.VitoonVongkusolkit

Chairman

In the future the companyhas defined thedirections, the company continues focusing on port services in the most important tradezone,especially,providingtheportservicestohandlinglargervesselstogetherwithdevelopingtools,equipmentsandhighcom-petency staff.

The Board of Directors wishes to express sincere appreciation toall shareholders, Investor,Customers, suppliers,financial institu-tions and our staffs for the continued support that has helped render UST’s success. We promise that UST will continue to conduct business withintegrity,prudenceandadherencetoitscodeofconduct,good corporategovernance, and sustainabledevelopmentprinciples, actinginthebestinterestsofallparties.Webelievethatbydoingso,UST will prosper.

07

Dear Shareholders of United Standard Terminal Public Company Limited

TheAudit Committee ofUnited StandardTerminal Public CompanyLimitedconsistsofMissAriyaWattana,Chairmanof the AuditCommittee,Mr.AnuratTiyaporn andMr. KrishAttagrish, membersoftheAuditCommittee.

TheAuditCommitteeperformeditsdutybasedonitsscopesofresponsibilityentrustedbytheBoardofDirectors.In2011,theAuditCommitteemeetingswereheld4 times.Seniorexecutives,Headof the Internal Audit Department and auditors also attended the meeting if there were relevant agendas.

The results of theAuditCommittee’s performance canbe summarizedasfollows.

• Reviewedaquarterlyfinancial statement and the2011 financial statement with executives and auditors to ensure thatfinancial statementsofboth theCompanyand its subsidiaries were in accordance with generally accepted accounting principles and that information was adequatelyandcompletelydisclosedinareliablemanner.In addition,theAuditCommitteealsoacknowledgedsolution guidelinesfortheCompany’sbenefit.Disclosureofrelatedparty transactionsbetween theCompany, its subsidiary and affiliated companieswas scrutinized toensure that the Companycompliedwithbusinesscriteria requiredbytheStockExchangeofThailand.

• Reviewed the InternalAuditPlanandReportspreparedbytheInternalAuditOutsourcecompanytoensurethatit comprehensivelycoverstherisksissuesinthevariousaspectsofCompanyoperationsandcorebusinessprocesses.Thiswastoensureadequatemonitoringandsolvingissuesofmaterialessencesasshowninanauditingreport.Intheend,allunitsmusthaveanadequateinternalcontrolsystemtodrivethebusiness to a sustainable growth.

Miss Ariya WattanaChairmanoftheAuditCommittee

Audit Committee Report

08

Annual Report2011


• RelatedPartyTransactions-TheAuditCommitteereviewedrelated party transactions that may cause a conflict of interest totheCompanyandfoundthattheywererealandcarriedoutduringanormalcourseofbusinessandtheCompany carriedout for theCompany’smaximumbenefit. And reviewedtheCompany’scomplianceaccordingtothelawsgoverningsecuritiesandexchange,regulationsoftheStockExchangeofThailandandother legislations relatingto itsbusiness and found that they were fully complied.

• Evaluatedperformanceoftheexternalauditors includesa considerationof theauditors independence,objectivity,level of fees and overall effectiveness and responsiveness of the auditor

• TheAuditCommitteealsoselectedthefollowingauditorswhowillbenominated to theBoardofDirectors,whichwill subsequently seekapproval from theShareholders’ Meeting.Theyare:Mr.SudwinPanyawongkhantiCertifiedPublicAccountant(Thailand)LicenseNo.3534andMrs.Anutai PoomsurakulCertifiedPublicAccountant(Thailand)No.3873andMr.VichienKhingmontriCertifiedPublicAccountant (Thailand)No.3977ofPricewaterhouseCoopersABASLtd.astheCompany’sauditorAuditfee’sCompanyamounting 600,000 Baht per annum and audit fee for 2 Affiliate subsidiaries company inThailandamount295,000Baht.TotalAuditFeeis895,000Baht.

TheAuditCommittee,havingreviewedtheoperation,isoftheopinion that theCompanydiligentlypursued thegoodcorporategovernancepolicy,resultinginanadequateinternalcontrolsystemwithnosignificantweaknesses.Theriskmanagementwasefficientlycarried out. Related party transactions which may lead to conflict of interest were actual transactions found during a normal course ofbusiness carriedout for theCompany’smaximumbenefit.No unusual itemwithmaterialessencewasfound.TheCompanyalsofully complied with all the rules and regulations. For the financial statements during the accounting period that ended 31 December2011, therewasno incident thatdepicted itemswith financial impacts. The financial statements were properly done. Information was adequately disclosed and in line with the accounting standards.

OnbehalfoftheAuditCommittee

Miss Ariya WattanaChairmanoftheAuditCommittee

UnitedstandardTerminalPublicCompanyLimited

09

Total Assets

TotalassetsasatDecember31,2011amountedtoBaht1,502.95millioncomparedwithDecember31,2010ofBaht1,443.35million,increasedbyBaht59.60millionor4.13%duetomainlyincreasinginCashandcashequivalentsresult of the company‘s profit.

Million baht 2011 2010 2009

Total assets 1,502.95 1,443.35 1,547.91

Total Liabilities and Net debt to Equity ratio

TotalliabilitiesasatDecember31,2011,amountedtoBaht378.98millioncomparedwithDecember31,2010ofBaht437.30million,ordecreasedbyBaht58.33millionor13.34%duetomainlydecreasinginnetoflongtermloansofBaht110.28millionfromrepaymentinthisperiodwhileincreasingincometaxpayableofBaht51.02millionfrom increasing in net profit of this period.

Debttoequityratioasof31December2011report0.34timecomparethesamelastyear0.43time.

Time 2011 2010 2009

NetDebttoEquity 0.34 0.43 0.59

Total Shareholders’ Equity

Totalshareholders’EquityasatDecember31,2011,amountedtobaht1,123.97millioncomparedwiththeasatDecember31,2010ofBaht1,006.04million,orincreasedbyBaht117.93millionor11.72%.ThiswasincreasedinNetprofitfortheyear2011ofBaht85.72millionanddividendpaymentfortheyear2010Baht38.77million.TheincreaseinshareoftheminorityshareholdersofsubsidiarycompanyofBaht26.45million.Theincreasingin RevaluationsurplusoflandofBaht51.71million.


TotalShareholders’Equity 1,123.97 1,006.04 975.73

Total service revenues

Asof31December2011,TheCompanyreportedthetotalservicerevenueofBaht1,266.87millioncomparethesamelastyearBaht915.41million-increasedbyBaht351.46millionor38.39percent.Duetoincreasinginservicequantitiesandserviceprice.


Total service revenues 1,266.87 915.41 996.22

The“otherincome”itemsoftheyear2011totalingBaht97.99millioncomparedwiththeyear2010ofBaht97.99millionorthedecreasedinotherincomeofBaht87.89millionmainlyfromInyear2010,thecompanysoldlandwithstructurethereonandequipmentwhichlocatedinAngthongprovinceofBaht165million.TheCompanyhadgainonsalesoftheseassetsofBaht94million.


other income 10.10 97.99 13.70

Key Financial Results

10

Annual Report2011


Gross profit

Grossprofitfortheyear2011wasBaht363.34millioncomparethesamelastyearBaht113.03million-increasedbyBaht250.31millionor221.45percent.

Million baht 2554/2011 2553/2010 2552/2009

Gross profit 363.34 113.03 162.38

Net Profit

NetProfitfortheyear2011ofBaht85.72millioncomparethesamelastyearBaht101.89Million-decreasedbyBaht16.17millionor15.87percent.


NetProfit 85.72 101.89 48.28

Earning (Loss) per share

Earningpersharefor2011of2.21Bahtpersharecomparethesamelastyearof2.63Bahtpershare.

Baht 2011 2010 2009

Earning(Loss)pershare 2.21 2.63 1.25

EBIDA

Earningsbeforeinterest,tax,depreciationandamortization(EBIDA)fortheyear2011ofBaht317.34millioncomparethesamelastyearBaht245.80million-increasedbybaht71.54millionor29.10percent.


EBIDA 317.34 245.80 210.20

11

Nature of Business

ThebusinessoperationofUnitedStandardTerminalPCLand itssubsidiarycompaniesstillmainly focusedontheprovisionofstorageservice,warehouserentalservice,tankrentalserviceforliquidgoods,in-and-outcargotransportation,uploadinganddischarginggoodsattheports,andfreightforwarding.AlloftheseareunitedtogetherastheIntegratedServiceforthesakeofcustomersconvenienceandsatisfaction.

TheCompanycontinueditseffortinexpandingthebusinesstowardsafull-scaleLogisticsServiceProvider.Itstartedtoprovideawiderrangeofservicescoveringmorekindsofgoods(whichcreatedcompetitivenessbasedonthetransportationtechnique).Italsodevelopedatraceablesystemtoserveasthebaseforbusinessexpansionof the customers.

ThepassyearhasmarkedagrowthinfreightforwardingandwarehousingbusinessesoftheCompany.Thatis,thevalueofstorageorwarehousingserviceandthein-and-outcargotransportation.ThefreightforwardingoftheLogisticsDepartment.Despitesuchsuccess,theCompanycontinuestosticktotheprincipleofprovidingthestandard services and move forwardly to the success it has set for the future.

TheCompanyalsohasafutureplantoprovidestandardservicesinlinewiththeincreasingtrendofthecompetition.TheCompanywill focusmoreonincreasingthecapacityofbackhaulcargoservice(bothbytrainandbytruck);improving warehouses towards a higher standard to accommodate business expansion (i.e. developing a “clean” warehouse);developingthefreightforwardingserviceofgoodsacrosstheborderfromLaosPDR;andprovidinggoodstransportationserviceforexportbydevelopingthecontaineryards(CY)atcustomersmanufactories.

12

Annual Report2011


Note : 1) Detail of percentage owned by the company in subsidiaries company as of 31 December 2011 Mitr Phol Warehouse Co.,Ltd. 80.00% Aawthai Warehouse Co.,Ltd 68.06% Guangxi Qinzhou Zhong-Tai Service Co.,Ltd In China 79.83%

2011 2010 2009 2008

Revenue Revenue Revenue Revenue

Service Revenues : Operatedby Shareholdings Million Baht % Million Baht % Million Baht % Million Baht %

Storage Income Note 168.01 13.16% 106.81 10.54% 205.02 20.30% 155.45 15.57%

HandlingandServiceFees Note 1007.28 78.88% 705.98 69.66% 657.63 65.12% 699.45 70.05%

Rental Income Note 91.58 7.17% 102.62 10.13% 133.57 13.23% 130.76 13.10%

OtherIncome Note 10.10 0.79% 97.98 9.67% 13.70 1.36% 12.89 1.29%

Total 1,276.97 126.01% 1,013.40 100.00% 1009.92 100.00% 998.542 100.00%

Revenue Structure for the Year 2011

13

Mr. Anurat TiyaphornIndependent Director /Audit Committee Member

Education and Experience •LL.M.NewYorkUniversity,U.S.A.•Director,ThaiMetalDrumMfg.PLC.•Director,NACATCo.,Ltd.•Director,CMTR(Thailand)Co.,Ltd.•Director,PimalaiResort&SpaCo.,Ltd.•Director,PimalaiHoldingsCo.,Ltd.

Percentage of held : -

Board of Directors of Company

Education and Experience • B.Sc(Pharmacology),ChulalongkornUniversity• Director,Chairman,TheInvestmentCommittee, TheErawanGroupPlc.

• Director,MemberofCompensationCommittee, BanpuPlc.

Program for Professional Directors• DirectorsCertificationProgram#17/2002, ThaiInstituteofDirectorsAssociation(IOD)

• Chairman2000#11/2005ThaiInstituteof DirectorsAssociation(IOD)

Percentage of held:-

Education and Experience • BA.AccountingThammasatUniversity• Director,AawthaiWarehouseCo.,Ltd.

Program for Professional Directors• AuditCommitteeProgram(ACP)#23/2008, ThaiInstituteofDirectorsAssociation(IOD)

• MonitoringtheQualityofFinancialReporting(MFR)#6/2008,ThaiInstituteofDirectorsAssociation(IOD)

• MonitoringtheInternalAuditFunction(MIA)#3/2008, ThaiInstituteofDirectorsAssociation(IOD)

• MonitoringtheSystemofInternalControlandRisk Management(MIR)#4/2008,ThaiInstituteof DirectorsAssociation(IOD)

Percentage of held:-

Miss Ariya WatanaIndependent Director / Chairman of Audit Committee

Mr. Vitoon VongkusolkitChairman

02

0301

0102 03

14

Annual Report2011


Mr. Grish AttagrishIndependent Director / Audit Committee MemberEducation and Experience •M.B.A.(Marketing),ChulalongkornUniversity•B.A.(Finance),ChulalongkornUniversity•FEVP,DivisionHead,CommercialBankingDivision2, SiamCommercialBankPCL.


Mr. Isara VongkusolkitDirectorEducation and Experience • BachelorDegreeinManagementfromNorthCarolina University,atGreensboro,U.S.A.

•TheHonoraryDoctorateDegreeofScience (Agribusiness),KhonKaenUniversity•TheHonoraryDoctorDegreeofPost-Harvestand ProcessingEngineering,RajamangalaUniversityof Technology Isan

•Chairman,MitrPholGroup•ViceChairman,TheThaiChamberofCommerce•ChairmanofSugarIndustryClub,TheFederationClub

The Federation of Thai Industries•HonoraryChairman,ThaiSugarandBio-EnergyProducers

Association•ViceChairman,AawthaiWarehouseCo.,Ltd.


Percentage of held : 2.90

04

05

Mr. Sophon Tirabanchasak Director

Education and Experience • MBA (Hons)Marketing, KatholiekeUniversiteit teLeuven,Belgium

• M.Eng.IndustrialEngineeringandManagement, Asian Institute of Technology (AIT)• ManagingDirector,SiambritCo.,Ltd.• Director,AawthaiWarehouseCo.,Ltd• Director,BAKACo.,Ltd



06

04 05 06

15

08

09

Mr. Jirasak VongkusolkitDirector

Education and Experience • MBA,RamkhamhaengUniversity• VicePresident-PurchasingandAdministration, MitrPholSugarCorp.,Ltd• Director,MitrPholWarehouseCo.,Ltd• Director,DanchangBio-EnergyCo.,Ltd.• Director,MitrPholBio-PowerCo.,Ltd.• Director,SingburiSugarCo.,Ltd• Director,MitrPholBioFuelCo.,Ltd.• Director,PacificSugarCorporationLimited



Mr. Amnuay KanjanakumnurdDirector Managing Director

Education and Experience • M.S.(InnovationandTechnology),BostonUniversity,U.S.A.• Director,ManagingDirector,MitrPholWarehouseCo.,Ltd• Director,ManagingDirector,AawthaiWarehouseCo.,Ltd.• Director,ManagingDirector, GuangxiQinzhouZhong-TaiServiceCo.,Ltd.

Program for Professional Directors• DirectorsCertificationProgram#23/2002, ThaiInstituteofDirectorsAssociation(IOD)• TLCA Executive Development Program (EDP#1) ThaiListedCompaniesAssociation


Miss. Kannika VongkusolkitDirector

Education and Experience • ShanghaiInternationalStudiesUniversity• MSc.ManagementwithFinance,UniversityofBath• BachelorOf Economics (InternationalProgram)

Thammasat University • Director,MitrPholWarehouse• Management Trainee, Future Market and RiskManagementDepartment


07

07 08 09

16

Annual Report2011


Mr.SomchaiKunmongkonwut

LogisticsandOperationDirector

EducationandExperience• M.S.(Accounting) Thammasat University• B.A (Accounting) Thammasat University • Finance&AdministrationDirectors• CompanySecretaryProgram#14/2005,ThaiInstituteofDirectorsAssociation(IOD)• DirectorsCertificationProgram#90/2007,ThaiInstituteofDirectorsAssociation(IOD)

Mr.PuchitLugsamipichate

ActingSale&BusinessDevelopmentDirector

EducationandExperience• MBA.,ThammasatUniversity• M.SC.(TechnologyofInformationSystemManagement),MahidolUniversity• B.SC.(Biotechnology),KasetsartUniversity• Ex-Sale&BusinessDevelopmentManager,UnitedStandardTerminalPublicCo.,Ltd.• Ex-InformationTechnologyManagerUnitedStandardTerminalPublicCo.,Ltd.

Mrs.OntichaThongbai

TerminalManagementManager,SamutPrakarn

EducationandExperience• BB.A(BusinessComputer)South-EastAsiaUniversity• Ex-AssistantwarehouseManager,UnitedStandardTerminalPublicCo.,Ltd.

ActingSubLt.Leevaichumkom

TerminalManagementManager(A4)

EducationandExperience• Master of Business Administration Burapha University• BachelorofEngineering(ElectricalEngineering)KingMongkut’sUniversityofTechnologyThonburi• Ex-TranportationManager,LinfoxTransportCo.,Ltd.

Mr.SarawootJiemsirsomsuk

GeneralManagerGuangxiQinzhouZhong-TaiServicesCo.,Ltd.

EducationandExperience• MasterOfInformationTechnology,AssumptionUniversityABAC.• Ex-InformationandContractManagementManager,GuangxiQinzhouZhong-TaiServicesCo.,Ltd.

Directors of the Company

17

Mrs. Apavinee Indaransi

MD.OfficeManager,CompanySecretary

EducationandExperience•B.S.(Accounting),BangkokUniversity•Ex-Accounting&FinanceManager,UnitedStandardTerminalPublicCo.,Ltd.•CorporateSecretaryDevelopmentProgram#10ListedCompaniesAssociation• InvestorRelationTrainingProgram,TheStockExchangeofThailand

Mr.ChalermpholSuparattanasit

Sale&BusinessDevelopmentManager

EducationandExperience•E.C.(EconomicInternational)BangkokUniversity•Ex-LogisticsManager,ChiamengCo.,Ltd.

Mr.WijayaKlinkesorn

Finance&AccountingManager

EducationandExperience•M.S.(Accounting)ChulalongkornUniversity•B.A(Accounting)ThammasatUniversity•CertifiedPublicAccountant•Ex-Accounting&FinanceManager,RCLPublicCo.,Ltd

Ms. Jutharat Supreyaporn

HumanResourcesManager,CompanySecretary

EducationandExperience•M.M.(HumanResourcesManagement),BuraphaUniversity•B.Edu.BuraphaUniversity•Ex-HumanResourcesManager,ChonburiConcreteProductPublicCo.,Ltd.•CompanySecretaryProgram#4/2011,ThaiInstiuteofAssociation•CorporateSecretaryDevelopmentProgram#14/2008,ThaiListedCompaniesAssociation

18

Annual Report2011


Major shareholders as of 20 December 2011

MajorShareholders Shares % of share holding

1 MitrPholSugarCorp.,Ltd.MitrPholSugarCorp.,LtdUnitedFarmer&IndustryCo.,Ltd

38,294,38130,233,2618,061,120

98.7777.9820.79

2 Miss Supranee Bhongstong 63,900 0.163 The Ngamlertchai Family

• Mr.Jongkol Ngamlertchai

• Mr.Sakol Ngamlertchai

62,9002,100

60,800

0.170.010.16

4 The Vongphuvarak

• Mr.Vibul Vongphuvarak

• MrsPhayom Vongphuvarak

60,00030,00030,000

0.160.080.08

567

Mrs.Jerdcharn LaovanichMr.Chanin VongkusolkitMr.Theera NaVangkanai

50,00027,43220,100

0.130.070.05

8 The Tongvoranan

• Mr.Kriengkrai Tongvoranan

• Mrs.Pornthip Tongvoranan

• Mr. Surasain Tongvoranan

20,000

4,000

4,000

12,000

0.05

0.01

0.01

0.03

91011

Mr.Sittichai CharoenkajornkulMr.Vijit JitjingjaiETC

12,60011,500

148,999

0.030.030.38

Total 38,771,812 100.00

Major Shareholders

19

Dividend Policy

TheCompanyhasthepolicytopaydividendnotlessthan50%ofitsnetprofitofeachfiscalyearafterreservingasrequiredbylawsandlosscarriedforward(ifany)fordividendpayment.However,theactualdividendpaymentdependsoncashflow,investmentplanoftheCompanyanditssubsidiaries,termsandconditionsoftheagreementsenteredbytheCompanytogetherwithallothernecessityandsuitabilityinthefuture.Theboardofdirectorswillconsidertheincomefromoperation,financialtermandcapitalrequirementofthecompanybothofcurrentandin the future will be offer to the shareholder for approve.The subsidiaries dividend payment policy is to distribute dividendofnetearningsubjecttosimilarconditiondescribedabove.

UnitedStandardTerminalPublicCompanyLimitedhassofarpaidthefollowingDividends:

Year Earningpershare(THBpershare)

Annual Dividend(THBpershare)

2009 2.37 1.00

2008 0.84 0.75

2007 1.10 0.75

Year

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Annual Report2011


Board of Directers

Organization ChartUnited Standard Terminal Public Company Limited and its subsidiaries

Managing Director

Audit Committee

Finance & Administration Division

Sales & Business Development Division

Logistics & Operation Division

Samutprakarn Terminal

Department

Chonburi Terminal

Department

Transportation Department

Sales & Business Development Department

Finance & Accounting Department

Human Resources

Department

21

Management Structure

TheCompany’sManagementstructureasof31December2011consistsofcommitteesandthemanagement.ThecommitteescomprisetheBoardofDirectorsandtheAuditCommittee

1. Board of Directors AsreportedintheMinistryofCommerce’scertificationtheBoardofconsistsof9members:

• 8non-managementDirectors(threewereindependentDirectors)

• OneManagingDirector.

Name Title Appointed

1.Mr.VitoonVongkusolkit Chairman 1 April 2010

2. Miss Ariya Wattana Independent Director 7April2011

3. Mr.Anurat Tiyaporn Independent Director 7April2011

4.Mr.GrishAttagrish Independent Director 9 April 2009

5.Mr.IsaraVongkusolkit Director 7April2011

6.Mr.SoponeTirabanchasak Director 1 April 2010

7.MissKannikaVongkusolkit Director 1 April 2010

8.Mr.JirasakVongkusolkit Director 9 April 2009

9.Mr.AmnuayKanjanakumnurd Director 9 April 2009

Rules regarding thequalificationof “IndependentDirectors” under theNotificationofCapitalMarket SupervisoryBoardNo.TorJor.4/2552dated20FebruaryB.E.2552areasfollows:

1. Holdssharesnotexceeding1percentofthetotalshareswithvotingrightoftheapplicant, itsparentcompany,subsidiaries,associates,majorshareholders,andcontrollingpartiesoftheapplicant,providedthatthe shares held by the related parties of such independent director shall be included.

2. Isnotorhasneverbeenanexecutivedirector,employee,staff,advisorwhoreceivessalary,norcontrollingpartiesoftheapplicant,itsparentcompany,subsidiaries,associates,same-levelsubsidiaries,majorshareholders, or controlling parties of the applicant unless the foregoing status ended at least 2 years prior to the date of submittingtheapplicationtotheSecuritiesandExchangeCommission(SEC),providedthatsuchprohibitionshallnotincludethecasethatsuchindependentdirectorhaseverbeenofficialoradvisorofthegovernmentsectorthatisthemajorshareholderorcontrollingpartyoftheapplicant.

3. Is not the person who has relationship by means of descent or legal registration under the status of father,mother, spouse,brothersandsisters,andchildren.Theprohibitivepersonsalso includespousesof daughtersandsonsofmanagement,majorshareholders,controllingpartyorthepersonwhoisintheprocessof nomination to be the management or controlling party of the applicant or its subsidiary.

4. Havenoorneverhadbusiness relationshipwith the applicant, its parent company, subsidiaries, associates,majorshareholders,orcontrollingpartiesoftheapplicantinrespectofholdingthepowerwhichmaycause theobstacleof the independentdecision, includingnotbeingorneverbeen the significant shareholder,orcontrollingpartiesofanypersonhavingbusinessrelationshipwiththeapplicant,itsparentcompany, subsidiaries,associates,majorshareholder,orcontrollingpartiesoftheapplicantunlesstheforegoingstatusendedatleast2yearspriortothedateofsubmittingtheapplicationtotheSEC.Thebusinessrelationshipmen-tionedunderthefirstparagraphshallincludebusinesstransactioninordinarybusinessmannerofrent,orleasetheimmovableproperty,transactionrelatedtoassetsorservices,orthefinancialsupportregardlessofbeinglentorborrowed,guaranteed,secured,byassets,debt,andanyotherwisesimilarperformancewhichcausesliabilityorobligationtotheapplicantorcounterparty,haveprovidedthatsuchliabilityisequaltoorexceed3percentofthenettangibleassetsoftheapplicantorequaloraboveTHB20million,whicheverislower.Inthisregard,thecalculationofsuchliabilityshallbeinaccordancewiththecalculationmethodofthevalueofconnectedtransactionundertheNotificationofCapitalMarketSupervisoryBoardgoverningtheconditionsof connected transaction mutatis mutandis. The liabilities incurred during a period of 1 year prior to the date of having business relationship with the above party shall be included on calculation of such liabilities.

5. Isnotorhasneverbeentheauditoroftheapplicant,itsparentcompany,subsidiaries,associates,major

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Annual Report2011


shareholders,orcontrollingpartiesofapplicant,andisnotthesignificantshareholder,controllingparties,orpartneroftheauditingfirmwhichemployssuchauditoroftheapplicant,itsparentcompany,subsidiaries, associates,majorshareholders,orcontrollingpartiesoftheapplicantunlesstheforegoingstatusendedatleast2yearspriortothedateofsubmittingtheapplicationtotheSEC.

6. Isnotorhasneverbeentheprofessionalserviceprovider,includingbutnotlimitedtolegalserviceorfinancial advisorwithreceivedtheservicefeemorethan2millionperyear fromtheapplicant, itsparentcompany, subsidiaries,associates,majorshareholders,orcontrollingparties,andisnotthesignificantshareholder,controlling parties,orpartneroftheabovementionedservicefirmsunlesstheforegoingstatusendedatleast2yearspriortothedateofsubmittingtheapplicationtotheSEC.

7. Isnotthedirectorwhoisnominatedtobetherepresentativeofdirectorsoftheapplicant,majorshare-holders,oranyothershareholderrelatedtothemajorshareholders.

8. Donotoperatethesameandcompetitivebusinesswiththebusinessoftheapplicant,oritssubsidiaries,orisnotasignificantpartnerofthepartnership,orisnotanexecutivedirector,employee,staff,advisorwhoreceivessalary,norholdsshareformorethan1percentofthetotalshareswithvotingrightofanyothercom-panywhichoperatessameandcompetitivebusinesswiththebusinessoftheapplicant,oritssubsidiaries.

9. Is not any otherwise which is unable to have the independent opinion regarding the business operation of the applicant.

Afterbeingappointedastheindependentdirectorinaccordancewiththeconditionsunderthearticle(1)-(9),suchindependentdirectormaybeassignedbytheboardofdirectorstomakedecisioninrespectofcollective decisiononbusinessoperationoftheapplicant,itsparentcompany,subsidiaries,associates,same-levelsubsidiaries,majorshareholder,orcontrollingpartiesofapplicant.

Theprovisionunderthearticle(2),(4),(5)and(6)relatedtotheconsiderationofqualificationofindependentdirectoroftheapplicantduringtheperiodof2yearspriortothedateofsubmittingtheapplicationtotheSECshallbeappliedtothe application submitting as from 1 July 2010 onwards.

Where the person appointed by the applicant to be the independent director is the person who has or ever had the business relationship with or ever rendered professional service with higher service fees specified under the article(4)and(6),theapplicantshallberelaxedfromsuchprohibitionrelatedtotheconditionsofhavingthebusi-ness relationship with or ever rendered professional service with higher specified service fees if only the applicant has provided the opinion of the board of directors of the company showing that the board has considered the issue inaccordancewiththeSection89/7andfoundthatthereisnointerferenceintheindependentopinion,andthefollowing information shall be disclosed in the notice of shareholders meeting under the agenda considering the appointment of independent director.

(a) thebusinessrelationshiportheprofessionalserviceprovidingwhichcausesuchpersonbeingunqualified

(b) reasons and necessity to insist the appointment of such person as the independent director

(c) the opinion of the board of directors of the applicant to propose such person to be the independent DirectorForthebenefitofthearticle(5)and(6),wording“partner”shallmeanthepersonwhoisassignedbytheauditingfirm,ortheprofessionalserviceprovidertobethesignatoryintheauditreportorthereport of rendering the professional services (as the case may be) on the behalf of the firm.

ShareOwnershipbyBoardofDirectorsin2011

23

No Name No.of Shares as of Increase (Decrease) of Shares in

2010

Note31 December 2011

31 December 2010

1. Mr.Vitoon Vongkusolkit - 1,466,040 1,466,040 1 April 2010

2. Miss Ariya Wattana - - - 7April2011

3. Mr.Anurat Tiyaporn - - - 7April2011

4. Mr.Grish Attagrish - - - 9 April 2009

5. Mr.Isara Vongkusolkit - 1,123,932 1,123,932 7April2011

6. Mr.Sopone Tirabanchasak 1 April 2010

7. MissKannika Vongkusolkit - 5,200 5,200 1 April 2010

8. Mr.Jirasak Vongkusolkit - 5,200 5,200 9 April 2009

9. Mr.Amnuay Kanjanakumnurd - - - 9 April 2009

Directors with Authority to sign on Behalf of the Company

Twoofthefollowingfive;Mr.VitoonVongkusolkit,Mr.IsaraVongkusolkit,MissKannikaVongkusolkit,Mr.JirasakVongkusolkitMr.AmnuayKanjanakumnurdshalljointlysigntogetherwiththeCompany‘sseal.

Duties and Responsibilities of Board of Directors

The Board is accountable to shareholders to so business and supervise the management in order to meet targets that will promote the best interests of shareholders. The Board is charged to act within best practices of business ethicsbytakingintoconsiderationtheinterestsofallstakeholders.

TheBoardofhasdutytostrictlycomplywiththelaws,theCompany’sobjectives,thearticlesofAssociationandresolutionsofshareholders’meeting,byactingingoodfaithandbytakingcareofbothshort-termandlong-terminterestsofshareholders,includingcompliancewithrulesandregulationsoftheStockExchangeofThailandandtheOfficetheSecuritiesandExchangeCommission.

The Board’s duties and responsibilities to consider and approve the following :

1. Todeterminemajorpolicies,businessstrategiesandmanagementgovernancetooperateandconformthespecifiedpoliciesefficientlyandeffectively.

2. To monitor operating results to be in line with annual plan and budgets

3. Toscreenandproposethebudgettoadjusttheexecutives’remunerationandwelfare.Toproposethedirectors’ meeting fees and remuneration’s and also the rate of dividend to be paid to shareholders.

4. Toconsiderthemanagementstructure,toappointtheManagementCommittee,theChairmanoftheExecutiveCommitteeandothercommitteesasdeemedappropriate

5. Anenteringintoacontractnotrelatedtoanormalcourseofbusinessandacontractrelatedtoanimportant normal business.

6. PartsofrelatedtransactionbetweentheCompany,itssubsidiariesandaffiliatesandrelatedindividualsthatdonotrequireresolutionoftheshareholders’meeting.

7. Toinitiate,screenandsupportprojectsforthepurposeofbusinessexpansionandgrowth,

8. Toconsideranddeterminetoinvestinotherbusinesses,jointventures,investmentincommonsharesanddisposal of the investments

9. Toconsideranddeterminetopurchaseanddisposalofassetsandacquisitionandparticipationinajointventureproject,whichisnotconflictingwiththeStockExchangeofThailand’srules.

10. Toconsidertheexecutives’remuneration,tonominatequalifiedcandidatesastheCompany’sdirectorsand executives. The allocation of rights to directors and employees of the company and its subsidiary company.

11. AppointmentandterminationofdirectorsandtheCompanysecretary.

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Annual Report2011


12. Establishingandsupervisingthemanagementonthebasisofgoodcorporategovernancepractice.

13. Establishprudentriskmanagementguidelines;ensurethattheManagementhasanefficientriskmanagement system or procedure.

14. Ensureappropriatechannelsforcommunicatingwitheachgroupofshareholdersandstakeholders.

15. Ensurecorrect,clear,transparent,reliableandhigh-qualitydisclosureofinformation.

2. The Audit Committee

TheBoardapprovedtheappointmentofanAuditCommitteeon1999.TheAuditCommitteeconsistsofCompany DirectorswithqualificationsspecifiedbysecuritiesandexchangelawsandSET.TheCommitteeshallconsistofatleastthreemembers,atleastoneofwhomshallbequalifiedinaccounttingandfinance.TheAuditCommitteecurrently consists of three independent Directors.

No Name Position

1. Ms.Ariya Wattana ChairmanoftheAuditCommittee IndependentDirectorwithqualificationsin finance and accounting

2. Mr.Anurat Tiyaporn MemberoftheAuditCommittee IndependentDirectorwithqualificationsin law.

3. Mr.Grish Attagrish MembeoftheAuditCommittee IndependentDirectorwithqualificationsin finance and accounting

Duties and Responsibilities of the Audit Committee

1. ToreviewtheCompany’sfinancialreportingprocesstoensurethatitisaccurateandadequate

2. ToreviewtheCompany’sinternalcontrolsystemandinternalauditsystemtoensurethattheyareappropriate andefficient,todetermineaninternalauditunit’sindependence,aswellastoapprovetheappointment,transferanddismissalofthechiefofaninternalauditunit;

3. Toconsider,selectandnominateanindependentpersontobetheCompany’sauditor,andtoproposesuchperson’sremuneration,aswellastoattendanon-managementmeetingwithanauditoratleastonceayear;

4. Toreviewtheconnectedtransactions,orthetransactionsthatmayleadtoconflictsofinterests,toensurethattheyareincompliancewiththelawsandtheExchange’sregulations,andareresonableandforthehighestbenefitoftheCompany;

5. Toprepare,andtodiscloseintheCompany’sannualreport,anauditcommittee’sreportwhichmustbesignedbytheChairmanoftheAuditCommitteeandconsistofatleastthefollowinginformation:

(a) anopinionontheaccuracy,completenessandcreditabilityoftheCompany’sfinancialreport,

(b) anopinionontheadequacyoftheCompany’sinternalcontrolsystem,

(c) anopiniononthecompliancewiththelawonsecuritiesandexchange,theExchange’sregulations,orthelawsrelatingtotheCompany’sbusiness,

(d) anopiniononthesuitabilityofanauditor,

(e) anopiniononthetransactionsthatmayleadtoconflictsofinterests,

(f ) thenumberoftheauditcommitteemeetings,andtheattendanceofsuchmeetingsbyeachcommitteemember,

(g) an opinion or overview comment received by the audit committee from its performance of duties in accordancewiththecharter,and

(h) othertransactionswhich,accordingtotheauditcommittee’sopinion,shouldbeknowntotheshareholders andgeneralinvestors,subjecttothescopeofdutiesandresponsibilitiesassignedbytheCompany’sboardofdirectors;

6. ToauditcasesinformedbytheCompany’sauditorwhenhe/shediscoversanysuspiciouscircumstancethatthedirector,manageroranypersonresponsiblefortheCompany’soperationcommitsanoffence,whichare

25

specifiedundertheSecuritiesandExchangeAct(No.4)B.E.2551andreporttheresultofpreliminaryinspectiontotheSecuritiesandExchangeCommissionandtheauditorwithinthirtydays;

7. TorevisetheAuditCommitteeCharteratleastonceayear;and

8. ToreviewandapprovetheInternalAuditCharter.

Name of Management

No Name Position

1. Mr.Amnuay Kanjanakumnurd Managing Director

2. Mr.Somchai Kunmongkonwut Finance and Administration Director

3. Mr.Puchit Lugsamipichate ActingSale&BusinessDevelopmentDirector

4. Mr.Chalermphol Suparattanasit Sale&BusinessDevelopmentManager

5. Mrs.Onticha Thongbai TerminalManagementManager(SamutPrakarn)

6. L.t.Leevai Chumklom TerminalmanagementManager(A4)

7. Ms. Jutharat Supreyaporn HumanResourcesManager

8. Mr.Wijaya Klinkesorn Finance&AccountingManager

9. Mrs. Apavinee Indaransi ManagingDirectorOfficeManager

10. Mr.Sarawoot Jiemsrisomsuk General Manager

Management’s ownership of shares

No Name No.of Shares as of Increase (Decrease) of

Shares in 2011Note31 December

201131 December

2010

1. Mr.Amnuay Kanjanakumnurd - - -

2. Mr.Somchai Kunmongkonwut - - -

3. Mr.Puchit Lugsamipichate - - -

4. Mr.Chalermphol Suparattanasit - - -

5. Mrs.Onticha Thongbai - - -

6. L.t.Leevai Chumklom - - -

7. Ms. Jutharat Supreyaporn - - -

8. Mr.Wijaya Klinkesorn - - -

9. Mrs. Apavinee Indaransi - - -

10. Mr.Sarawoot Jiemsrisomsuk - - -

AdditionalinformationontheCompany’sBoardandManagement.

Records showed no violation of the law within the past ten years regarding being sentenced with criminal chargesorundercriminallawsuitsandbeingsentencedtobankruptcyhavingassetscontrolledandservingasthemanagementorapersonwithauthorityinacompanyorpartnershipthathasbeensentencedtobankruptcyorhadasset controlled.

Remuneration of Directors and Management

RemunerationofDirectors;theCompanyspecifiesequitableandreasonablecompensationtakingintoaccounteachDirector’sresponsibility,theCompany’sfinancialperformance,andcompatibilitywiththerestoftheindustry.Two portions of the compensation are currently paid meeting allowance and bonus.

Directors appointed to specific subcommittee are paid additional allowances to reflect their additional responsibilities. Directors’ compensation has been approved by the shareholders’ meeting as follow :

• Meeting Allowances• Board of Directors Meeting ( for meeting attendee only)

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Annual Report2011


Chairman 20,000 Bahteachpermeeting OtherDirector 12,000 Bahteachpermeeting

• AuditCommitteeMeeting(formeetingattendeeonly) Chairman 30,000 Bahteachpermeeting

OtherDirector 25,000 Bahteachpermeeting

Remuneration of Board of Directors as of 31 December 2011

No Name Title MeetingAllowance(Baht/Year) Remuneration (Baht/year)

Total

(Baht/Year)Board of Directors

Audit Committee

1 Mr.VitoonWongkusolkitChairman

80,000.00 - 220,000.00 300,000.00

2. Ms.Ariya WattanaIndependentDirector/ChairmanoftheAuditCommittee

60,000.00 120,000.00 170,000.00 350,000.00

3. Mr.Anurat Tiyaporn IndependentDirector/MemberoftheAuditCommittee

60,000.00 100,000.00 170,000.00 330,000.00

4. Mr.Grish Attagrish IndependentDirector/MemberoftheAuditCommittee

60,000.00 100,000.00 170,000.00 330,000.00

5. Mr.IsaraVongkusolkitDirector

48,000.00 - 170,000.00 218,000.00

6. Mr.SoponeTirabanchasakDirector

48,000.00 - 170,000.00 218,000.00

7 Miss.KannikaVongkusolkitDirector

60,000.00 - 127,500.00 187,500.00

8. Mr.JirasakVongkusolkitDirector

60,000.00 - 170,000.00 230,000.00

9. Mr.AmnuayKanjanakumnurdDirector/ManagingDirector

60,000.00 - 170,000.00 230,000.00

Total 536,000.00 320,000.00 1,537,500.00 2,393,500.00

TheRemunerationofManagement-SalaryandBonus

Remuneration 2010 2011

Person Amount (Baht) Person Amount (Baht)

Salary 8 13,311,600 10 14,508,800

Bonus 8 2,593,273 10 3,862,210

Total 8 15,904,873 10 18,371,010

Otherremuneration-Providentfund

Remuneration 2010 2011

Person Amount (Baht) Person Amount (Baht)

ProvidentFund 8 665,580 10 725,440

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TheCompanyplacegreat importanton theprincipleofGoodCorporateGovernancewhichmakebe transparent forbusinessoperationandbeconfident for shareholders, investorsandother relatedstakeholdersincluding leading to continues corporate growth.

ThecompanyiscommittedtocompliancewithcorporategovernanceguidelineissuedbyStockExchangeofThailand and other related regulations to achieve high standards of corporate governance.

1. Good Corporate Governance Policies

TheBoardofDirectorsplacesgreat importanceon theprincipleofGoodCorporateGovernancewhich isconsidered essential for business operation and will lead to continuous corporate growth in the long run and bring added value as well as sustainable wealth to the shareholders. The Board of Directors has established a set of policy guidelines and principles as shown as follows :

• Equalandfairtreatmentforshareholdersandstakeholders

• Transparencyandaccountabilityinouroperation;adequatedisclosureofinformationtoallpartlyconcerned.

• Awarenessofrisksinconductingourbusiness;implementationofappropriateriskmanagementstrategies.

• TheBoardofDirectorscommittoperformtomaximizeshareholdervalueandpreventforconflictofinterest.

• TheBoardofDirectors,ManagementandEmployeeshave toperformandbe responsibleunder the corporate business ethics.

2. Shareholders: Rights and Equitability

TheCompanyrecognizesthat its investorswillputtrustandconfidence in itsbusinessonly if theycanbe assuredthattheCompanyhasanequitablepolicyandmaintainsshareholders’fundamentalrightsandequitabilityunder law.

TheCompanynormally schedulesanannualgeneral shareholdersmeeting (AGM)within fourmonthsoftheannualclosingdateofitsaccountingbooks.Forurgentmattersrelatingtoshareholders’interestorrequiring shareholders’approvalunderanyrules,conditionsorapplicablelawsitwillcallanextraordinaryshareholders’meeting.

TheBoardacknowledgestherightofshareholderstoreceiveequaltreatmentandvoicetheiropinionsatthemeetings. Meeting invitations containing details of the agenda and accompanying documents must therefore be deliveredtoshareholdersatleast14dayaheadofeachmeetinginordertogivethemenoughtimetoprepare.Inaddition,atleastthreedaysaheadofmeeting,theinvitationmustbeannouncedthroughoneThaiandoneEnglishnewspaperforatleastthreeconsecutivedays.Fortheannualmeeting,TheCompanywillpostmeetinginvitationson itswebsiteat least30daysaheadof themeeting.TheCompanyensures thateachshareholders isproperly accommodatedandtakencareofduringthemeetingwithequitabletreatment,andthateachcanreasonablybeassured of the meeting security measures. Registration will be started one hours prior to the meeting.

Ateachmeeting,afterexplainingtheCompany’s rulesonvotingandvotecounting for individualagendaitems, thechairmanof themeetingmustaddresseveryopinion,question,or recommendationofshareholders, givingadequate time fordebateoneachagenda item.Theminutesof themeetingmustbecompletelyand accuratelyrecordwithawrittensummaryofvotingresultsoneachmatter.Asarule,Shareholders’meetinglast1.5hours.

Inaddition,theInvestorRelationsDepartmentservesasaclearinghousefordisclosingessentialinformationtoinvestor,whichincludesfinancialreportssuchperformancereports,financialstatements,andinformationreporttoSET.Includingthequarterlymanagementdiscussionandanalysisreports.

Good Corporate Governance

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Annual Report2011


3. Right of All Stakeholders

• TheCompanyrecognizesthelegalrightsofallitsstakeholderswhichcompriseofshareholders,employees,management,customers,suppliers,competitorsandthewidercommunity.Thereforethecompanyhasapolicytoprotectandtreatsuchrightswithduecare.Inaddition,theCompanyprovidescooperativesupportamongthevariousgroupsofstakeholderstheirrolesandduties.ThiswillenabletheCompanytogeneratestability,wealth,andmeettheinterestsofallpartiesequitably.

Shareholders :TheCompanyaims tomanage theoperationof thebusinessby concentratingon long-termgrowthandcontinuousaddedvalueonreturnstomaximizesustainableshareholders’wealth.TheCompanyequitably treatsmajorandminor shareholders toprovide thegreatbenefit toall the company’s shareholders.

Employees:TheCompanycommunicatedandhelpemployeetounderstandvision,missionandactionplan.WewillintroducetheEmployeePerformancePlanin2006tohelpemployeeestablishtheirpersonalkeyperformanceindicatorthatinlinewithcompanyobjectivesandstrategy.Thenewcompensation structurealsowillbeintroducedtolinkwithperformancescheme.Thecompanyalsoimplementthemasterplan on competencies development continuously creates opportunities and to increase the competency ofemployees.Inaddition,theCompanywillimproveHumanResourcePoliciestoenhanceefficiencies,competitiveadvantagestogetherwithqualityoflife.

Customers :TheCompanyrecognizesthatcustomer’ssatisfaction iscrucial totheCompany’sbusiness success,TheCompanyintendstofindwaysandmeanstoeffectivelyrespondtocustomer’sneedswhereitseriouslycommitstodowhateverithaspromisedtocustomers.Plansaredraftedandresponsiblepersonsareentrustedforcompliancecontrol,deliveringproductswithquality.Incasetheproductcan’tbedelivered,the company will discuss with the customers to find the best solution possible to reduce potential impact.

Supplies:TheCompanytreatthemequallyandfairlybytakingintoconsiderationitsmaximumbenefitandon the basis that both parties receive fair returns. The company will do everything to avoid a situation that may lead to a conflict of interest.

Competitors :TheCompanyhasapolicytotreatthemaccordingto internationalprinciplesunderthelegalframeworkoftradecompetitionpracticeswherenosecretisviolatedorbecomeknownbyfraud.TheCompanycommitsindoingbusinessfairlybasedmainlyonthepracticeswrittenintheCodeofConduct.Inthepastyear,thecompanyhadnodisputewithbusinesscompetitors.

Communities and the society :TheCompanyhasestablishedenvironmentalsafetystandardsaswellas preventive measures to avoid adverse impacts to the communities in accordance with government standards.TheCompanyconsciouslysupportsactivitiesforpublicbenefitinthecommunitieswherethecompany’s business operations are located.

Tosupportthesepolicies,thecompanyhaslongreturnedpartofitsprofitstosupportvarioussocialactivities.It sets aside a budget to implement this policy. It also actively creates a social responsibility awareness among staff andthatthecompanyremainsagoodcorporatecitizenforthesocietyintheyeartocome.

4. Shareholders’ Meeting

In2011,theCompanyheldAnnualGeneralMeetingonApril7,2011.TheBoardofDirectorshasapolicytourgeshareholderstoparticipateinadecision-makingprocessandmakesurethattheyreceivecompleteandadequateinformationinatimelyfashiontomakesuchdecision.TheCompanysendsoutinvitationlettersalongwithagendadetails,opinionsoftheBoard,completeminutesofthepreviousmeeting,anannualreportandsupplementarymeetinginformation,andaproxyformcompletewithinstructionstoshareholderssevendayspriortothemeetingdate.Thecompletepackagewassenttoeachshareholderwhosenameappearedontheshareholderrosterontheclosingdate.Shouldshareholderswishedtoappointproxiestoattendthemeetingandvoteontheirbehalf,theycould do so under the procedure or delegate independent Directors and their proxies.

TheAnnualGeneralMeeting,AtotalofnineDirectorsattendedtheAGM-namelytheChairmanoftheBoard,thechairmanofAuditcommittee,thedirectorstogetherwithseniorManagementandExternalAuditor.Thechairman performed his role impeccably as defined by law and the meetings also gave their unanimous approval to the agenda. Inaddition,TheBoardofDirectorsalsopreparesaminuteofthemeetingreadyforpostinginthecompany’swebsitewithin14daysfromthemeetingdateforshareholderstocheckwithouthavingtowaituntilthenextmeeting.

29

5. Leadership and Vision

TheCompanyhasaclearvisiontobeamodernintegratedlogisticsserviceproviderthataddvaluetocustomersandsharevaluetoemployeeandsociety.Toensurethattheoperationbenefitstohighest,theBoardofDirectorssurethattheCompanyformulatesitsvision,mission,goal,policyoperationdirection,long-termstrategicplan,operation planandannualbudget. Inthis regard,executivesareentrustedtoproposethemandtheBoardofDirectors isexpected toexpress itsopinionsbeforediscussing thesubjectwith themanagement formutualapprovaland permission.TheBoardofDirectorsdistinctlydelegatesrolesandresponsibilitiesfortheBoardofDirectors,theAuditCommittee,theExecutiveCommitteeandthemanagementteaminorderofensurethattheCompanyisoperatedeffectively in accordance with sound corporate governance practices.

The Board and the Management value participation in development training relevant to their performance over90%oftheDirectorshaveundergoneIODtraining,theCompanycontinuallysponsoredsuchtrainingatIODand other institutes.

6. Conflicts of Interest

TheBoardofDirectorshasdistinctlyestablishedpoliciestoensurethatpreventdirectors,managementandstafffromusingtheirstatustoseekpersonalinterest.Asaresults,directorsmanagementandstaffalikemustrefrainformdoinganyconnectedtransactionthatmayleadtoconflictofinterestwiththeCompany.IfnecessarytodosoforthesakeoftheCompany,theBoardofDirectorsrequiresthattheycomplywiththerulesoftheStockExchangeofThailand(SET)wheretransactionshallbemadeatapriceandunderconditionsasifitisdonewiththethirdpartyand a directors or staff with interest must not be involved whatsoever in a approval process.

7. Business Ethics

The Board of Directors encourages the management and employees to strictly adhere to the business ethics. TheCompanyaimstooperateallbusinesseswithtransparencyandintegrityaswellasincompliancewithrelatedlaws and regulations.

8. Balance of Power for Non-Executive Directors

TheBoardofDirectorshasbeenappointedbytheShareholders’Meeting.TheCompanyhasnon-executivedirectorswhichisequivalentoverhalfoftotaldirectorsontheBoard.TheBoardofDirectorsconsistedof9memberoneDirectorswastheManagingDirector,5werenon-managementDirectorsand3wereIndependentDirectors.

Therefore, the stakeholderswereassured thatDirectors independently represented thebest interestof shareholders and that power was properly balance.

9. Aggregation or Segregation of Positions

Chairmanof theBoard isnon-executivedirectorsand isnot the samepersonwhoholds thepostof the ManagingDirectoroftheCompany,sotheChairmanisfreefromthemanagementteamoftheCompany.Thisisclearly segregation of duty between setting of good corporate governance policy and routine management by a good balance of power.

10. Remuneration for Directors and the Managements

TheCompany’sremunerationfordirectorsandthemanagementistransparentandfairlydeterminedaswellcomparable to the average rate of remuneration for the directors of listed companies. The remuneration for directors requiresapprovalintheshareholders’meeting.

DetailoftheremunerationspaidbytheCompanytoitsdirectorsandManagementareinRemunerations.

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Annual Report2011


11. The Board of Directors’ Meetings

TheCompanyalreadysetupanannualmeetingscheduleinadvance.Thatis,theBoardofDirectorsmeetingareatlease1timepereachquarter,withadditionalmeetingcalledtodiscussspecialagendaitemsasnecessaryThat all directors are informed and can allocate time to attend the meetings appropriately. There must be a clear meetingagendaboth for acknowledgementandconsiderationateachmeeting. In addition, theemeeting’s supportingdocumentsmustbecompletedandadequateforsendingtotheBoardofDirectorsinadvancesothattheBoardofDirectorswillhaveenoughtimetostudytheinformationbeforeattendingthemeeting.Eachmeetingwilllastapproximately2-3hours.Inthemeeting,eachdirectorsopenlyandfreelyexpressesopinion.Theminutesofeachareproperlydocumentedand,afterapprovalfromtheBoardisgiven,arefiledforauditingpurposesandreference by directors and related person.

In2011,theBoardofDirectorsconvened7times.Recordsofmeetingattendanceeachdirectorareasfollows.

Name Title Termofoffice Total Meeting Attendance

1.Mr.Vitoon Vongkusolkit Chairman April2010-April2013 6/7

2. Ms.Ariya Wattana Independent Director April2012-April2014 7/7

3. Mr.Anurat Tiyaporn Independent Director April2012-April2014 7/7

4.Mr.Grish Attagrish Independent Director April2009-April2012 7/7

5.Mr.Isara Vongkusolkit Director April2012-April2014 6/7

6.Mr.Sopone Tirabanchasak Director April2010-April2013 6/7

7.Miss.Kannika Vongkusolkit Director April2010-April2013 7/7

8.Mr.Jirasak Vongkusolkit Director April2009-April2012 7/7

9.Mr..Amnuay Kanjanakumnurd Director April2009-April2012 7/7

12. Sub-Committees

Toassistinthescreeningandefficientsupervisionofbusinessoperation,theBoardappointedsubcommitteewithspecializedandexpertise.Thecomposition,scopeofauthorityandresponsibilities

• TheAuditCommittee

In2011,theAuditCommitteeconvened4times.Recordsofmeetingattendanceeachdirectorareasfollows.

Name Title Total Meeting Attendance

1.Ms,.AriyaWattana ChairmanoftheAuditCommittee 4/4

2. Mr.Anurat Tiyaporn MemberoftheAuditCommittee 4/4

3. Mr.Grish Attagrish MemberoftheAuditCommittee 4/4

13. Internal Control System and Internal Audit

The Board of Directors establishes internal control system that covers every aspect starting from finance operation andlegalcompliance.Italsomakesurethatenoughandefficientcheckingandbalancing.TheCompanyhirean outsourceInternalaudittoaudittheoperationofallbusinessaswellastoassesstheriskfactors,draftariskmanagement planandmonitors resultof theoperation .All risks starting fromrisk relating tovision, strategy,businessplan, investment,operation to risk relating tomarketing,finance,humanresourcemanagement, safety,occupationalhealth and environment and legal compliance are covered. The outsource internal audit directly reports to the Audit CommitteewhoareindependentdirectorandbringthesolutionstotheBoardofDirectors

31

14. Report of the Board of Directors

TheBoardofDirectors recognizes thecentral rolesand responsibilitiesasdirectorsofa listedcompany in controlling to provide correct and complete financial reports and information. The Board also is responsible to ensure for that financial statements are prepared in accordance with generally accepted accounting principles in Thailandandsaidpolicesareconsistentlyimplemented.MaterialinformationisadequatelydisclosedintheNotesto the Financial Statements.

TheBoardofDirectorsappointstheAuditCommittee’sviewsregardingthisissuearedisclosedintheAnnualReportunderthesectionofAuditCommittee’sReport.

TheBoardofDirectorsdeemsthattheCompany’sfinancialstatementsfortheyearof2011,whichtheAuditCommitteeandthemanagementteamhavereviewedandthecertifiedindependentauditorhaveaudited,arefairlystated in accordance with generally accepted accounting principles in Thailand. The appropriate accounting policies areadoptedonthefinancialstatementsconsistently.MaterialinformationissufficientlydisclosedintheNotestotheFinancialStatements.Inaddition,theyareincompliancewithallrelatedlaws,rulesandregulations.

15. Investor Relations

TheBoardofDirectorsmakessurethatbothfinancialandnon-financialinformationrelatingtotheCompany’sbusinessesandperformanceisrevealedinacomplete,adequateandregularmanner.Inaddition,theinformationmustreflecttheCompany’sactualperformanceanditstruefinancialstatusaswellasitsbusinessfuturewhilestrictlycomplyingwiththelaws,rulesandregulationsrelatingtotheinformationdisclosureoftheSECandSET.

TheCompanyhasthewebsiteto increaseanotherchanneltodistributethecompany’s informationtoourinvestors and public investors.

TheCompanyhasafewactivitiesofinvestorrelationactivities.Sothecommunicationofinformationtopublic,Managing Director has the direct duty to be responsible for Finance and Administration Director and Accounting and Finance Manager have the duty as investor relation to give more information to our investors.

Supervision on the Use of Internal information

ItisCompany’sCodeofConducttorevealaccurateandreliableinformationinatimelyfashiontoshareholders,investors,securitiesanalystsandthegeneralpublicincludingwheneverthereischangeinexecutives’shareholdingasrequiredbytheSEC.Allinformationisstrictlyreportedtothesupervisoryagency.

RegardingthesupervisionontheuseoftheCompany’sinsideinformation.Thecompanydeemsthatitistheresponsibilityofdirectors,executivesandstaffaliketokeeptheCompany’ssecretinstrictconfidential,especiallywithregardtoinformationnotyetrevealedtothepublicoranydatathatmightaffecttheCompany’soperations.Incaseexecutiveorstaffisworkinginaprojectofwhichtheinformationisnotyetreleasedtothepublicandthenegotiation isongoingwhere insider informationmustbekept in secretas itmayeffect themovementof the Company’ssharepricesuchexecutiveorstaffmustsignaconfidentialityagreementuntiltheinformationisrevealedtotheSETandtheSEC.

RegardingthesupervisionontheuseoftheCompany‘sinsideinformationwithintheCompany,theCompanyhasclearlystipulatedinitsworkregulationsunderthesubjectofdisciplinesanddisciplinaryactionsthatanystaffavoidsorviolatesthedisciplinestatedthereinwillbeconsideredbreachingtheregulationandthereforesubjecttodisciplinaryaction.RevealstheCompany’ssecrets,intendstodestroytheCompany’sreputation,creditabilityorproductswhichcausestheCompanytosufferformdamageorlosebusinessopportunitythestafftoapenaltyuptoexpulsion.Inaddition,theCompanyhasalsointroducedandITsystemtocontroltheuseofinsiderinformation.AsystemtodenyaccesstotheCompany’sinformationbythethirdpartyisintroducedtodeterminethelevelofinformation access of staff base on his responsibility.

32

Annual Report2011


TheBoardofDirectorsandtheManagementareresponsibleforestablishingandmaintaininganefficientandeffectiveinternalcontrolsystemaswellasreviewtheefficiencyoftheinternalcontrolsystemonaregularbasis.

Internalcontrolsareestablishedtoprovidereasonableassuranceregardingtheachievementofobjectivesinthe following categories: • Thereliabilityandintegrityofinformation • Compliancewithpolicies,plans,procedures,lawsandregulations • Thesafeguardingofassets • Theeconomicalandefficientuseofresources • Theaccomplishmentofestablishedobjectivesandgoalsforoperationsorprograms

Infulfillingitsoversightresponsibilities,theAuditCommitteereviewedtheresultsoftheevaluationoftheinternalcontrolsystemperformedbytheCompany’sinternalauditor.TheCompanyengagedanoutsourceinternalauditfirmtoconducttheinternalauditofTheCompany.Internalauditfindingsandrecommendationswerediscussedwithmanagement.Duringtheyear,certainoperationalprocessesreviewedrequiredimprovementsandmonitoringto improve controls. These were brought to the attention of management and senior executives in order that the requiredimprovementsareimplemented.

TheAuditCommitteealsoreviewedtheinternalcontrolreportoftheexternalauditorspreparedinrelationtotheirstatutoryauditoftheCompany’saccounts.Althoughcertainfindingsandrecommendationswerereported,theauditorsalsoreportedthatbasedontheirfindings,theyarenotawareofanymaterialweaknessintheinternalcontrol of the companies.

Inrelianceonthereviewsanddiscussionsreferredtoabove,theAuditCommitteereportedtotheBoardofDirectorsthattheinternalcontrolsystemisadequateandalsorecommendedthatthereshouldbeacontinuousinternalcontrolreviewcoveringallareasofoperations,inordertoensurethatcontrolsareoperatingeffectively.

Internal Control 2011

33

Connected Person and Transaction

ConnectedPersons/TypeofBusiness Description of Relationship MajorShareholders ListofBoardofDirector

Mitrphol Warehouse CompanyLimited

(warehouse and Terminal)

1) SubsidiariesCompanywithUnitedStandardTerminalPlcholds 80%

2) ThereisonejointManagingDirector, Mr.Amnuay Kanjanakumnurd

3)Thereare5JointDirectorasfollows:

1.Mr.Vitoon Vongkusolkit

2.Mr.Isara Vongkusolkit

3.MissKannika Vongkusolkit

4.Mr.Jirasak Vongkusolkit

5.Mr.Amnuay Kanjanakumnurd

As of 31 December 2010

1.UnitedStandardTerminalPLC 80.00%

2.TheVongkusolkitFamily 15.04%

3.Mr.TaveevatTaveepiyamaporn 4.90%



3.Mr.Chanin Vongkusolkit



6.Mr.Taveevat Taveepiyamaporn

7.MissKannika Vongkusolkit

Aawthai Warehouses CompanyLimited


1)SubsidiariesCompanywithUnitedStandardTerminalPlcholds59.31%

2)ThereisonejointManagingDirector,Mr.AmnuayKanjanakumnurd

3)Thereare4JointDirectorasfollows:


2.Ms.Ariya Wattana

3Mr.Sopone Tirabanchasak




2.Mr.IsaraVongkusolkit 10.00%

3.RachasrimaSugarCo.,Ltd. 4.07%

4.AngthongSugarTerminal.,Ltd. 3.87%

5.KumphawapiSugarCo.,Ltd. 3.17%

1.Mr.Viboon Panitwong


3.MrYuthana Panitpichetwong

4.Mr.Teera Nawangkanai

5.Mr.Wivat Tangpong


7.Mr.Kanit Sawangvaroros

8. Miss Ariya Wattana

9.Mr.Sopone Tirabanchasak

34 Annual Report2011

United Standard Terminal Public Com

pany Limited


GuangxiQinzhouZhong-TaiServiceCompanyLimited


1) SubsidiariesCompanywithUnitedStandardTerminalPlcholds79.83%

2) There are 1 Joint Director as follows :




2.GuangxiRongguiTradeCo.,Ltd.20.17%

1.Mr.Soonthorn Vongkusolkit

2.Mr.Liu Jianfeng


4.Mr.Chusak Vongkusolkit

5.Ms.Wei Zezhong

6.Mr.Xuan Bilong

7.Mr.Visut Somchai

MitrPholSugarCorp.,Limited

(ProductionandDistributionofSugarand Molasses )

1) BeingoneofthemajorshareholdersofUnitedStandardTerminalPlc holding77.98%ofitspaid-upcapital

2) Themajorshareholderisthe VongkusolkitfamilywhichisalsooneofmajorshareholdersofUnitedStandardTerminalPlc.

3) There are 3Joint Director as follows :

1.Mr.VitoonVongkusolkit

2.Mr.IsaraVongkusolkit

4) StorageandhandlingforSugarandMolasses.


1.Mitr Siam Sugar 99.99%

1.Mr.Vitoon Wongkusolkit



4.Mr.Banthoeng Vongkusolkit

5.Mr.Chusak Vongkusolkit

6.Mr.Padung Dechakarin


8Wg.Cmr.Laksami Vongkusolkit

9.Mr.KrisdaMonthienvichienchai

10.Mr.Verajet Vongkusolkit

11.Dr.Jeradej Ausawad

35


UnitedFarmerandIndustryCompanyLimited (ProductionandDistributionofSugarand Molasses )

1) Beingoneofthemajorsharehold-ers of United Standard Terminal Plcholding21.00%ofitspaid-upcapital

2) ThemajorshareholderistheVongkusolkitfamilywhichisalsooneofmajorshareholdersofUnitedStandardTerminalPlc.


1.Mr.VitoonVongkusolkit


4) StorageandhandlingforSugarandMolasses.


1.MitrPholSugarCorp.,Ltd 87.56%





5.Ms.Jintana Kanjanakumnurd

6Mr.Sukkarn Wattanavekin

7.Ms.Chayavadee Chaianan.

8.Mr.Krisda Monthienvichienchai


MitrKalasinSugarCompanyLimited

(ProductionandDistributionofSugarand Molasses )

1) TheMajorShareholderisUnitedFarmerandIndustryCo.,Ltd.


1.Mr.VitoonWongkusolkit


3) Storage and handling for Sugar and Molasses.


UnitedFarmerandIndustryCo.,Ltd.

99.99%






6Mr.Sukkarn Wattanavekin

7.Ms.Chayavadee Chaianan.


PacificSugarCorporationCompanyLimited (Shipper)

1) TheMajorShareholderisMitrPholSugarCorp.,Ltd.






1.MitrPholSugarCorp.,Ltd. 25.00%


3.Mr.TaveevatTaveepiyamaporn 7.35%

1Mr.Isara Vongkusolkit



4.Mr.Kanong Sakphet



pany Limited


MitrPhuViangSugarCompanyLimited(ProductionandDistributionofSugarand Molasses )

1) TheMajorShareholderisUnitedFarmerandIndustryCo.,Ltd



3) Storage and handling for Sugar and Molasses.


UnitedFarmerandIndustryCo.,Ltd

99.99%

1Mr.Isara Vongkusolkit



SingburiSugarCompany (ProductionandDistributionofSugarand Molasses )




2) Storage and handling for Sugar and Molasses



2.ThePanitpichetwong’sFamily 45.00%

3.ThePiyamaporn’sFamily 5.39%

1.Mr.Virat Rattanaporn

2.Mr.Viboon Panitwong

3.Mr.Jaturong Panitpichetwong

4.Mr.Yuthana Panitpichetwong






UfinvesCompanyLimited 1) BeingoneofthemajorshareholdersofUnitedStandardTerminalPlc holding1.03%ofitspaid-upcapital

2) Themajorshareholderisthe VongkusolkitfamilywhichisalsooneofmajorshareholdersofUnitedStandardTerminalPlc.





1.TMTCapital 100.00%






6.MrMatee Auapinyakyk

7.Mr.Banjerd Vongkusolkit

8.Mr.Sawatdiparp Kantatham

9.Mr.Prachub Trinikorn

10.Mr.Ongart Auapinyakul

37


PanelPlusCompanyLimited Thereis1jointDirectorasfollows:



1.MitrpholSugarCorp.Ltd 76.12%



3.Mr.Krisda Montienvichienchai

4.Mrs.Amporn Kanjanakumnurd

5.Mr.Sukkarn Wattanavekin

6.Mr.Attaphol Vongkusolkit

7.MissTeeranart Vongkusolkit

CityHoldingCompanyLimited 1) BeingoneofthemajorshareholdersofUnitedStandardTerminalPlc holding0.09%ofitspaid-upcapital







2.TheKanjanakumnurdFamily 6.00%

3.ThePuthapongsiriporn 2.00%

1.Mr.Kamol vongkusolkit


3.Mr.Vitoon Vongkusolkij



6.Ms.Jintana Vongkusolkit


8.MissArada Vongkusolkit

9.Mr.Banjerd Vongkusolkit



pany Limited


MitrPhloBioFuelCompanyLimited Thereare4JointDirectorasfollows:






1. MPEnergyCo.Ltd. 55.26%

2. TheVongkusolkitFamily 30.06%

3. TheKanjanakumnurdFamily 8.24%

4. EasternsugarCo.,Ltd 3.16%

1.Mr.Vitoon Vongkusolkij





6.Mr.Pravit Prakitsri

7.Ms.Supavee Vongkusolkit


BakacompanyLimited There are 3Joint Director as follows :




1.TheKanjanakumnurdFamily 60.00%

2.TheTirabanchasakFamily 20.00%

3.ThePhanvirojFamily 20.00%

1.Mr.Pradit Kanjanakumnurd


3.Mr.Tavee Phanviroj


5.Mr.Chukiat Kanjanakumnurd

MitrLaoSugarCompanyLimited There are 2 Joint Director as follows :




1.MitrpholSugarCorp.Limited

2.Tate&LyleCompanyLimited





5.Mr.IanDonaldFordyceBacon

39

OtherconnectedtransactionsbetweentheCompanyanditssubsidiaries,affiliatedcompaniesandotherrelatedcompaniesincludingaprice-settingpolicyandapplicableinterestrateinClause6.ofNotestoFinancialStatement.

ConnectedtransactionsbetweenbusinesseswiththefollowingrelationshipswereexecutedConnectedTransactions RelatedCompanies Transaction

Value

(Million Baht)

UnitedStandardTerminalPublicCo.Ltd.

1. TheCompanyexecuted the connected transactionwith MitrPholWarehouseCo.Ltd:

• WarehouseRentalincome33.31MillionBaht

• TransportationIncome0.06MillionBaht

• OtherIncome2.25MillionBaht

MitrPholWarehouseCo.,Ltd: 35.62

2. TheCompanyexecutedtheconnectedtransactionwithAawthaiWarehouseCo.Ltd

• Managementfeeserviceincome3.60MillionBaht


• DividendIncome10.89MillionBaht


AawthaiWarehouseCo.,Ltd 21.77

3. TheCompanyexecuted the connected transactionwithGuangxiQinzhouZhongtaiCompanyLimited

• Managementfeeserviceincome1.13MillionBaht

Guangxi Qinzhou ZhongtaiCompanyLimited

1.13

4. TheCompanyexecutedtheconnectedtransactionwithMitrPholSugarCorp.,Ltd

• HandlingandServiceincome10.02MillionBaht


• EquipmentRentalincome1.77MillionBaht


MitrPholSugarCorp.,Ltd 15.59

5. TheCompanyexecuted the connected transactionwith MitrKalasinSugarCo.,Ltd




MitrKalasinSugarCo.,Ltd 10.54

6. TheCompanyexecutedtheconnectedtransactionwithSingburiSugarCo.,Ltd


• Transportationincome0.55MillionBaht


SingburiSugarCo.,Ltd 11.44

40

Annual Report2011


ConnectedTransactions RelatedCompanies Transaction Value

(Million Baht)7. TheCompanyexecuted the connected transactionwith

United

• FarmerandIndustryCo.,Ltd




United Farmer and Industry Co.,Ltd

155.88

8. TheCompanyexecutedtheconnectedtransactionwithMitrSiamSugarCo.,Ltd


MitrSiamSugarCo.,Ltd 0.20

9. TheCompanyexecuted the connected transactionwithPanelPlusCo.,Ltd


PanelPlusCo.,Ltd 6.19

10. TheCompanyexecutedtheconnectedtransactionwithBakaCo.,Ltd



MItrPuviengSugarCo.,Ltd 0.13

MitrPholwarehouseCo.,Ltd

11. TheCompanyexecuted the connected transactionwith MitrPholSugarCorp.,Ltd

• StorageIncome5.71MillionBaht


12. TheCompanyexecutedtheconnectedtransactionwithMitrKalasinSugarCo.,Ltd



13 TheCompanyexecuted the connected transactionwithSingburiSugarCo.,Ltd



14. TheCompanyexecutedtheconnectedtransactionwithUnited




14.57

15. TheCompanyexecutedtheconnectedtransactionwithMitrLaoSugarCo.,Ltd



MitrLaoSugarCo.,Ltd 43.54

41

ConnectedTransactions RelatedCompanies Transaction Value

(Million Baht)

16. TheCompanyexecuted the connected transactionwith MitrPholBioFuleCo.,Ltd.


• TransportationIncome5.62MillionBaht5.62MillionBaht

MitrPholBioFuelCo.,Ltd. 6.64

17. TheCompanyexecutedtheconnectedtransactionwithBAKACo.,Ltd



BAKACo.,Ltd 19.44

18. TheCompanyexecuted the connected transactionwithSawannakhetCo.,Ltd


SawannakhetCo.,Ltd. 1.01

19. TheCompanyexecutedtheconnectedtransactionwithPanelPlusCo.,Ltd

• Storageincome0.06MillionBaht

PanelPlusCo.,Ltd 0.06

AawthaiwarehouseCo.Ltd

20. TheCompanyexecuted the connected transactionwith MitrPholSugarCorp.,Ltd

• Storageincome1.16MillionBaht



21. TheCompanyexecutedtheconnectedtransactionwithMitrKalasinSugarCo.,Ltd




22 TheCompanyexecuted the connected transactionwithSingburiSugarCo.,Ltd




23. TheCompanyexecutedtheconnectedtransactionwithUnited





141.79

24. TheCompanyexecutedtheconnectedtransactionwithMitrLaoSugarCo.,Ltd



MitrLaoSugarCo.,Ltd 8.04

25. TheCompanyexecutedtheconnectedtransactionwithPacificSugarCorporationCo.,Ltd


Pacific Sugar CorporationCo.,Ltd

0.16

42

Annual Report2011


Report of the Board of Director’s Responsibility in the Financial Statements

(Mr.AmnuayKanjanakumnurd)Managing Director

(Mr.VitoonWongkusolkit) ChairmanBoardoftheDirector

TheBoardofDirectors’priorityistosupervisetheCompany’soperationsthattheyareinlinewiththegoodcorporategovernancepoliciesandthatfinancialstatementsandfinancialdataappearedintheCompany’sannualreportcontainaccurate,completeandadequate,completeandadequateinformation.ltsdutyisalsotomakesurethatthefinancialstatementsareinlinewiththegenerally-acceptedaccountingprinciplespracticedinThailandwherean appropriate accounting policy is being chosen and carefully pursued on a regular basis. In addition the Board of DirectorsmustalsoensurethattheCompanyhasaneffectiveinternalcontrolsystemtoguaranteethecredibilityofitsfinancialstatements,thataprotectionsystemisinplacetopreventunusualtransactionsthataconnectionthatmight lead to possible conflicts of interest is in fact an actual transaction reasonably carried out during a normal courseofbusinessfortheCompany’smaximumbenefitsandthatrelevantlawsandregulationsarecomplied.TheAuditCommitteehasalreadyreportedtheresultofitsactiontotheBoardofDirectorsandhasalsoreporteditsopinionsintheAuditCommittee’sReportasseenintheannualreport.

Inthisregard,theBoardofDirectorsisoftheopinionthattheCompany’sinternalcontrolsystemisprovensatisfactoryandcontributes to theCompany’s credibilityasof31December2011TheCompany’sauditorhas alreadyauditeditaccordingtothegenerally-acceptedaccountingstandardsandhasanopinionthatthefinancial statementsshowanaccuratefinancial statusandoperation result in itsessenceasper thegenerally-accepted accounting principles.

43

UnitedStandardTerminalPublicCompanyLimitedanditssubsidiarycompanies“TheCompany”wouldliketopresenttheManagement’sDiscussionandAnalysis(MD&A)fortheyearendedDecember31,2011asfollows:

The consolidated earnings statement for the year ended December 31, 2011 showed net earnings of Baht85.72millioncomparedwiththesameperiodoftheyear2010ofBaht101.89million.ThenetearningsdecreasedbyBaht16.17millionor15.87%duetothefollowingreasons:

1) Changes in Revenues:

1.1 The company derives revenues from rendering of services in the following categories of (1) Storage (2) Handlingandservicefeesand(3)Rental.Thetotalservicefeesoftheyear2011totaledBaht1,266.87millioncompared withtheyear2010ofBaht915.41million,orincreasedbyBaht351.46millionor38.39%.Thisisduetothefollowings:

• RevenueoftheCompanyandsubsidiaries inThailandincreasedofBaht317.25millionor43.06%bymainlyincreasingintherevenueofhandlingandservicesfeesresultofincreasinginservicequantitiesand service price.

• RevenuefromthesubsidiaryinChinaincreasedofBaht34.21millionor19.15%duetoincreasinginservicequantitiesbothhandlingandtransportationresultofexpansionoflocationtoservicetothecustomer.

1.2 Inyear2010,thecompanysoldlandwithstructurethereonandequipmentwhichlocatedinAngthongprovinceofBaht165million.TheCompanyhadgainonsalesoftheseassetsofBaht94.48million.

2) Changes in Costs and Expenses:

2.1 Costsofservicesconsistof(1)Salaries,wagesandotheremployeebenefits(2)Depreciationandamortization expense(3)Handlingservice,storageandoperationexpenses(4)Premisesexpensesand(5)Equipmentexpense.Thetotalcostofserviceoftheyear2011ofBaht903.53millioncomparedwiththesameperiodof2010ofBaht802.38million.TheincreaseofBaht101.15millionor12.61%isduetothefollowing

• IncreasinginthecostsofserviceoftheCompanyandsubsidiariesinThailandofBaht52.88millionor8.27%.

• IncreasinginthecostsofserviceofthesubsidiaryinChinaofBaht48.27millionor29.56%duetoincreasing inservicequantitiesbothhandlingandtransportationandincreasinginservicecost.

2.2 Administrativeexpensesfortheyear2011totaledBaht53.45millioncomparedwiththeyear2010ofBaht40.92million.TheexpenseincreasedbyBaht12.53millionor30.62%forimprovingthebusinesswhichrelatedtoincreasingintheCompany’srevenueandprofit.

2.3 Otherexpensesoftheyear2011ofBaht82.26millionmainlyfromthesubsidiary’slandrecordedinfairvalueasatacquisitiondateofBaht194Million.AnindependentprofessionalvalueapprisedatBaht106million.TheCompanyrecordedlossonimpairmentoflandofamountingtoBaht88millionin2011.

2.4 Financecostsoftheyear2011totaledBaht17.71millioncomparedwiththeyear2010ofBaht16.06million. ThefinancecostsincreasedofBaht1.65millionor10.27%.

2.5 Corporateincometaxoftheyear2011totaledBaht89.44comparedwiththeyear2010ofBaht37.69million. ThecorporateincometaxincreasedbyBaht51.75millionrelatedtotheincreasingincompany‘sprofit.

Management’s Discussion and Analysis

44

Annual Report2011


ThechangesinconsolidatedstatementsoffinancialpositionasatDecember31,2011incomparedwithDecember 31,2010areasthefollowing:

1. Assets

TotalassetsasatDecember31,2011amountedtoBaht1,502.95millioncomparedwithDecember31,2010ofBaht1,443.35million,increasedbyBaht59.60millionor4.13%duetomainlyincreasinginCashandcashequivalentsresult of the company‘s profit.

2. Liabilities

TotalliabilitiesasatDecember31,2011,amountedtoBaht378.98millioncomparedwithDecember31,2010ofBaht437.30million,ordecreasedbyBaht58.33millionor13.34%duetomainlydecreasinginnetoflongtermloansofBaht110.28millionfromrepaymentinthisperiodwhileincreasingincometaxpayableofBaht51.02millionfrom increasing in net profit of this period.

3. Shareholders’ Equity

Totalshareholders’EquityasatDecember31,2011,amountedtobaht1,123.97millioncomparedwiththeasatDecember31,2010ofBaht1,006.04million,orincreasedbyBaht117.93millionor11.72%asshownbelow:

3.1 NetprofitoftheBaht85.72million

3.2 DividendpaidoftheCompanyofBaht38.77million.

3.3 TheincreaseinshareoftheminorityshareholdersofsubsidiarycompanyofBaht26.45million.

3.4 TheincreasinginRevaluationsurplusoflandofBaht51.71million.

3.5 TheincreaseincumulativeeffectofchangeinaccountingpolicyforemployeebenefitsofBaht8.29million.

3.6 TheincreaseindeficitoninvestmentinsubsidiarycompanyofBaht4.63million.

3.7 NetdebttoequityratioasatDecember31,2011reportedat0.34timesfortheconsolidatedbalancesheetsand0.07timesfortheparentcompany.Asat31December2010,theratioswere0.43timesfortheconsolidatedbalancesheetsand0.15timesfortheparentcompany.TheRatiodecreasedduetotherepayment of loan in this period.

45

46

Annual Report2011

United Standard Tewminal public Company Limited

Report of Independent Auditor To the Shareholders of United Standard Terminal Public Company Limited

I have audited the accompanying consolidated statement of financial position of United

Standard Terminal Public Company Limited and its subsidiaries as at 31 December 2011,

the related consolidated statements of comprehensive income, changes in shareholders’

equity, and cash flows for the year then ended, and the separate financial statements of

United Standard Terminal Public Company Limited for the same period. These financial

statements are the responsibility of the Company’s management as to their correctness and

the completeness of the presentation. My responsibility is to express an opinion on these

financial statements based on my audit. I did not audit the financial statements of an

overseas subsidiary which were included in the consolidated financial statements and whose

total assets as at 31 December 2011 amounted to Baht 80 million, and total revenues and

loss for the year then ended amounted to Baht 215 million and Baht 25 million, respectively.

These statements were audited by other auditor whose report has been furnished to me, and

my reports, insofar as it relates to the amounts included for these subsidiary, are based

solely on the report of the other auditor.

I conducted my audit in accordance with generally accepted auditing standards. Those

standards require that I plan and perform the audit to obtain reasonable assurance about

whether the financial statements are free of material misstatement. An audit includes

examining, on a test basis, evidence supporting the amounts and disclosures in the financial

statements. An audit also includes assessing the accounting principles used and significant

estimates made by management, as well as evaluating the overall financial statement

presentation. I believe that my audit and the report of the other auditor referred to in the first

paragraph provide a reasonable basis for my opinion.

Report of Independent Auditor

472

In my opinion, based on my audit and the report of the other auditor, the financial statements

referred to above present fairly, in all material respects, the financial position of United

Standard Terminal Public Company Limited and its subsidiaries and of United Standard

Terminal Public Company Limited as at 31 December 2011, and the results of their

operations and cash flows for the year then ended in accordance with generally accepted

accounting principles.

Without qualifying my opinion on the aforementioned financial statements, I draw attention to

Note 3 to the financial statements. During the current year, the Company and its subsidiaries

adopted a number of revised and new accounting standards as issued by the Federation of

Accounting Professions, and applied them in the preparation and presentation of their

financial statements.

The consolidated financial statements of United Standard Terminal Public Company Limited

and its subsidiaries and the separate financial statements of United Standard Terminal

Public Company Limited for the year ended 31 December 2010,as presented herein for

comparative purposes, were audited by another auditor of our firm, who under her report

dated 23 February 2011 expressed an unqualified opinion on those statements. Her report,

insofar as it related to the amounts recorded for the overseas subsidiary that was audited by

another auditor was based solely on the report of that auditor. The financial statements of

the subsidiary reflected total assets as at 31 December 2010 of approximately Baht 137

million, total revenues and net income for the year then ended of approximately Baht 196

million, and approximately Baht 2 million, respectively.

Supachai Phanyawattano

Certified Public Accountant (Thailand) No. 3930

Ernst & Young Office Limited

Bangkok: 22 February 2012

48

Annual Report2011


United Standard Terminal Public Company Limited and its subsidiaries

Statements of financial position

As at 31 December 2011 and 2010

(Unit: Baht)

Note 2011 2010 2011 2010

Assets

Current assets

Cash and cash equivalents 8 114,196,982 65,044,746 4,731,689 50,506,938

Trade accounts receivable and accrued income 9 113,797,754 92,801,273 43,920,480 24,017,528

Dividend receivable from related party 7 - - 3,638,811 10,916,433

Withholding tax 8,516,020 11,920,800 3,413,774 9,236,517

Other current assets 16,667,808 28,010,770 3,013,876 3,555,396

Total current assets 253,178,564 197,777,589 58,718,630 98,232,812

Non-current assets

Investments in subsidiaries 10 - - 376,103,230 357,903,230

Investment properties 11 179,235,605 152,338,003 162,198,337 135,300,735

Property, plant and equipment 12 1,018,797,778 1,037,957,793 405,778,739 373,669,052

Intangible assets - computer software 13 10,992,780 17,502,013 8,985,887 15,213,360

Goodwill 31,573,111 31,573,111 - -

Other non-current assets 9,169,992 6,196,736 2,913,644 2,830,349

Total non-current assets 1,249,769,266 1,245,567,656 955,979,837 884,916,726

Total assets 1,502,947,830 1,443,345,245 1,014,698,467 983,149,538

The accompanying notes are an integral parts of the financial statements.

Consolidated financial statements Separate financial statements

The accompanying notes are an integral part of these financial statements.

Statements of Financial PositionUnited Standard Terminal Public Company Limited and its subsidiaries


49


Statements of financial position (continued)


(Unit: Baht)

Note 2011 2010 2011 2010

Liabilities and shareholders' equity

Current liabilities

Trade and other payables 14 90,905,740 78,604,628 38,177,163 21,435,843

Current portion of long-term loans from

financial institutions 15 33,400,000 59,924,918 - 28,299,918

Current portion of liabilities under hire-purchase and

financial lease contracts 16 8,775,788 17,404,883 3,417,376 8,605,227

Corporate income tax payable 52,026,699 1,011,085 2,368,931 -

Other current liabilities 11,130,592 13,576,617 3,761,299 3,101,359

Total current liablilities 196,238,819 170,522,131 47,724,769 61,442,347

Non-current liabilities

Deposits received - related party 7 - - 6,496,800 470,400

Long-term loans from financial institutions, net

of current portion 15 152,300,000 236,058,080 - 56,080,986

Liabilities under hire-purchase and financial lease

contracts, net of current portion 16 9,797,279 18,345,200 1,962,149 5,380,238

Provision for long-term employee benefits 17 9,614,020 - 4,862,363 -

Other non-current liabilities 11,025,560 12,380,275 2,670,496 5,815,911

Total non-current liabilities 182,736,859 266,783,555 15,991,808 67,747,535

Total liabilities 378,975,678 437,305,686 63,716,577 129,189,882



Statements of Financial Position (Continued)United Standard Terminal Public Company Limited and its subsidiaries



50

Annual Report2011



Statements of financial position (continued)


(Unit: Baht)

Note 2011 2010 2011 2010

Shareholders' equity

Share capital

Registered

40,000,000 ordinary shares of Baht 10 each 400,000,000 400,000,000 400,000,000 400,000,000

Issued and fully paid-up

38,771,812 ordinary shares of Baht 10 each 387,718,120 387,718,120 387,718,120 387,718,120

Share premium 150,000,000 150,000,000 150,000,000 150,000,000

Retained earnings

Appropriated - statutory reserve 18 40,000,000 37,800,000 40,000,000 37,800,000

Unappropriated 237,606,076 201,149,464 181,259,895 138,147,089

Other components of shareholders' equity 191,323,170 138,503,745 192,003,875 140,294,447

Equity attributble to the Company's shareholders 1,006,647,366 915,171,329 950,981,890 853,959,656

Non-controlling interests of the subsidiaries 117,324,786 90,868,230 - -

Total shareholders' equity 1,123,972,152 1,006,039,559 950,981,890 853,959,656

Total liabilities and shareholders' equity 1,502,947,830 1,443,345,245 1,014,698,467 983,149,538

- - - -


Director


Statements of Financial Position (Continued)United Standard Terminal Public Company Limited and its subsidiaries



51


Statements of comprehensive income

For the years ended 31 December 2011 and 2010

(Unit: Baht)


Note 2011 2010 2011 2010

Profit or loss:

Revenues

Revenues from services

Storage charges 168,012,172 106,809,282 - -

Handling and service fees 1,007,276,036 705,980,846 346,820,219 339,377,478

Rental income 91,583,496 102,622,944 58,588,705 49,736,094

Other income

Gain on sales of property, plant and equipment 12 - 88,927,158 - 88,796,844

Others 10,095,900 9,057,284 17,601,543 19,983,250

Total revenues 1,276,967,604 1,013,397,514 423,010,467 497,893,666

Expenses

Cost of services 903,530,995 802,378,733 317,095,752 344,023,664

Administrative expenses 53,445,725 40,920,803 17,184,862 25,451,698

Other expenses

Loss on sale of plant and equipment 21,223,264 - 33,619 -

Loss on impairment of fixed assets 12 87,940,721 3,415,887 - 3,415,887

Reversal allowance for loss on impairment of

investment properties 11 (26,897,602) - (26,897,602) -

Total expenses 1,039,243,103 846,715,423 307,416,631 372,891,249

Profit before finance cost and corporate income tax 237,724,501 166,682,091 115,593,836 125,002,417

Finance costs (17,714,523) (16,055,065) (4,703,477) (7,017,235)

Profit before corporate income tax 220,009,978 150,627,026 110,890,359 117,985,182

Corporate income tax (89,442,777) (37,688,392) (21,595,425) (26,244,221)

Profit for the year 130,567,201 112,938,634 89,294,934 91,740,961

Other comprehensive income:

Exchange differences on translation of

financial statements in foreign currency 7,195,286 (6,440,343) - -

Revaluation surplus on land 51,709,428 - 51,709,428 -

Other comprehensive income for the year 58,904,714 (6,440,343) 51,709,428 -

Total comprehensive income for the year 189,471,915 106,498,291 141,004,362 91,740,961





Statements of Comprehensive Income

52

Annual Report2011



Statements of comprehensive income (continued)


(Unit: Baht)


Note 2011 2010 2011 2010

Profit attributable to:

Equity holders of the Company 85,721,425 101,892,537 89,294,934 91,740,961

Non-controlling interests of the subsidiaries 44,845,776 11,046,097

130,567,201 112,938,634

Total comprehensive income attributable to:

Equity holders of the Company 143,174,850 96,751,211 141,004,362 91,740,961

Non-controlling interests of the subsidiaries 46,297,065 9,747,080

189,471,915 106,498,291

Earnings per share 20

Basic earnings per share

Profit attributable to equity holders of the Company 2.21 2.63 2.30 2.37





Statements of Comprehensive Income (Continued)

53


Statements of changes in shareholders' equity


Other changes

by the owners

Deficit on investments

in subsidiary arising

Exchange as a result of

differences on acquisition of additional

translation of shares at a price Total other Total equity Equity attributable

Issued and financial over than the components of attributable to to non-controlling Total

fully paid-up Share Revaluation statements in net book value at shareholders' shareholders of interests of shareholders'

share capital premium Appropriated Unappropriated surplus on land foreign currency the acquisition date equity the Company the subsidiaries equity

Balance as at 31 December 2009 387,718,120 150,000,000 36,100,000 130,035,786 184,582,084 3,350,624 - 187,932,708 891,786,614 83,938,677 975,725,291

Dividend paid (Note 23) - - - (29,078,859) - - - - (29,078,859) - (29,078,859)

Total comprehensive income for the year - - - 101,892,537 - (5,141,326) - (5,141,326) 96,751,211 9,747,080 106,498,291

Unappropriated retained earnings transferred

to statutory reserve - - 1,700,000 (1,700,000) - - - - - - -

Decrease in revaluation surplus from sales of land - - - - (44,287,637) - - (44,287,637) (44,287,637) - (44,287,637)

Increase in non-controlling interests from share capital issued - - - - - - - - - 50,000 50,000

Decrease in non-controlling interests of the subsidiaries

from dividend payment - - - - - - - - - (2,867,527) (2,867,527)

Balance as at 31 December 2010 387,718,120 150,000,000 37,800,000 201,149,464 140,294,447 (1,790,702) - 138,503,745 915,171,329 90,868,230 1,006,039,559

Balance as at 31 December 2010 387,718,120 150,000,000 37,800,000 201,149,464 140,294,447 (1,790,702) - 138,503,745 915,171,329 90,868,230 1,006,039,559

Cumulative effect of change in accounting policy for

employee benefits (Note 3) - - - (8,293,001) - - - - (8,293,001) (1,163,709) (9,456,710)

Dividend paid (Note 23) - - - (38,771,812) - - - - (38,771,812) - (38,771,812)

Acquisition of non-controlling interest (Note 10) - - - - - - (4,634,000) (4,634,000) (4,634,000) (13,566,000) (18,200,000)

Total comprehensive income for the year - - - 85,721,425 51,709,428 5,743,997 - 57,453,425 143,174,850 46,297,065 189,471,915


to statutory reserve - - 2,200,000 (2,200,000) - - - - - - -

Decrease in non-controlling interests of the subsidiaries

from dividend payment - - - - - - - - - (5,110,800) (5,110,800)

Balance as at 31 December 2011 387,718,120 150,000,000 40,000,000 237,606,076 192,003,875 3,953,295 (4,634,000) 191,323,170 1,006,647,366 117,324,786 1,123,972,152

- -


Retained earnings

Other comprehensive income

Other components of shareholder's equity

(Unit: Baht)

Consolidated financial statements

Equity attributable to the Company

Statements of Comprehensive IncomeUnited Standard Terminal Public Company Limited and its subsidiaries



United Standard Tewm

inal public Company Lim

ited


Statements of changes in shareholders' equity (continued)


(Unit: Baht)

Other Total other

Issued and fully comprehensive income components of Total

paid-up Revaluation shareholders' Shareholders'

share capital Share premium Appropriated Unappropriated surplus on land equity equity

Balance as at 31 December 2009 387,718,120 150,000,000 36,100,000 77,184,987 184,582,084 184,582,084 835,585,191

Dividend paid (Note 23) - - - (29,078,859) - - (29,078,859)

Total comprehensive income for the year - - - 91,740,961 - - 91,740,961


to statutory reserve - - 1,700,000 (1,700,000) - - -

Decrease in revaluation surplus from sales of land - - - - (44,287,637) (44,287,637) (44,287,637)




employee benefits (Note 3) - - - (5,210,316) - - (5,210,316)

Dividend paid (Note 23) - - - (38,771,812) - - (38,771,812)

Total comprehensive income for the year - - - 89,294,934 51,709,428 51,709,428 141,004,362


to statutory reserve - - 2,200,000 (2,200,000) - - -



Retained earnings

Separate financial statements

Statements of Comprehensive Income (Continued)United Standard Terminal Public Company Limited and its subsidiaries


55


Cash flow statements


(Unit: Baht)


2011 2010 2011 2010

Cash flows from operating activities

Net income before tax 220,009,978 150,627,026 110,890,359 117,985,182

Adjustments to reconcile net income before tax to

net cash provided by (paid from) operating activities:

Depreciation and amortisation 79,614,163 79,122,424 34,299,223 37,808,566

Loss from impairment of assets 87,940,721 3,415,887 - 3,415,887

Reversal allowance for loss on impairment of investment properties (26,897,602) - (26,897,602) -

Allowance for doubtful accounts (3,948,100) (2,930,493) (68,159) (3,185,853)

Gain on sales and lease back of assets (220,510) (1,468,655) (220,510) (1,468,655)

(Gain) loss on sales of property, plant and equipment 21,223,264 (88,927,158) 33,619 (88,796,844)

Write-off intangible assets - 6,738,066 - 6,196,419

Long-term employee benefits expenses 2,411,388 - 1,338,975 -

Dividend income - - (10,889,200) (10,889,730)

Unrealised gain on exchange - - - (26,703)

Interest expenses 17,714,523 16,055,065 4,703,477 7,017,235

Income from operating activities before changes in

operating assets and liabilities 397,847,825 162,632,162 113,190,182 68,055,504

Operating assets (increase) decrease

Trade accounts receivable and accrued income (17,048,381) 60,900,876 (19,834,793) 51,173,593

Other current assets 14,747,742 (20,324,619) 6,364,263 1,559,797

Other non-current assets (2,973,256) 18,042,046 (83,296) 372,834

Operating liabilities increase (decrease)

Trade and other payables 4,004,783 (62,005,632) 14,804,681 (36,067,115)

Other current liabilities (2,446,025) (2,184,754) 653,260 (1,415,207)

Deposits received - related party - - 6,026,400 (4,272,240)

Other non-current liabilities (3,388,283) 1,313,845 (4,611,833) 514,979

Cash flows from operating activities 390,744,405 158,373,924 116,508,864 79,922,145

Cash paid for interest expenses (14,995,529) (12,249,837) (3,924,078) (5,700,305)

Cash paid for corporate income tax (38,427,163) (44,958,735) (19,226,494) (29,657,995)

Net cash flows from operating activities 337,321,713 101,165,352 93,358,292 44,563,845





Cash Flow Statements

56

Annual Report2011



Cash flow statements (continued)


(Unit: Baht)


2011 2010 2011 2010

Cash flows from investing activities

Increase in short-term loans to related party - - - 33,500,000

Dividend income from related party - - 18,166,822 -

Acquisition of intangible assets (25,994) - - -

Acquisition of plant and equipment (109,122,088) (105,026,093) (8,482,130) (6,738,218)

Proceeds from sales of property, plant and equipment 12,325,985 176,579,707 1,926,502 176,215,683

Acquisition of non-controlling interest (18,200,000) - (18,200,000) -

Paid up capital in subsidiary - - - (19,950,000)

Net cash flows from (used in) investing activities (115,022,097) 71,553,614 (6,588,806) 183,027,465

Cash flows from financing activities

Decrease in bank overdrafts and short-term loans

from financial institutions - (47,421,280) - (31,739,872)

Decrease in short-term loans from director

and related party - (10,000,000) - -

Cash receipt from long-term loans 8,780,372 153,219,628 - -

Repayments of long-term loans (119,063,370) (153,771,321) (84,380,904) (101,681,322)

Repayments of liabilities under hire-purchase and financial

lease contracts (19,938,983) (26,377,584) (9,392,019) (14,616,588)

Cash received from investment of non-controlling interest

of the subsidiary - 50,000 - -

Dividend paid (38,771,812) (29,078,859) (38,771,812) (29,078,859)

Dividend paid for non-controlling interest of the subsidiary (5,110,800) - - -

Net cash flows used in financing activities (174,104,593) (113,379,416) (132,544,735) (177,116,641)

Increase (decrease) in translation adjustment 957,213 (126,258) - -

Net increase (decrease) in cash and cash equivalents 49,152,236 59,213,292 (45,775,249) 50,474,669

Cash and cash equivalents at beginning of year 65,044,746 5,831,454 50,506,938 32,269

Cash and cash equivalents at end of year 114,196,982 65,044,746 4,731,689 50,506,938

- - - -

Supplemental cash flows information

Non-cash transactions:

Acquisition of machinery and equipment

under financial lease contracts - 1,552,000 - 1,552,000

Account payable for purchase of machinery 8,339,302 9,147,860 1,950,000 -

and equipment





Cash Flow Statements (Continued)

571

United Standard Terminal Public Company Limited and its subsidiaries Notes to consolidated financial statements For the year ended 31 December 2011 and 2010

1. Corporate information

United Standard Terminal Public Company Limited (“the Company”) is a public

company incorporated and domiciled in Thailand. Major shareholders of the company

are Mitr Phol Sugar Corporation Limited and United Farmer and Industry Company

Limited which are incorporated in Thailand. The Company is principally engaged in the

provision of handling and transportation services for sugar and certain agricultural

products, and warehouse rental service. The registered office of the Company is at

78/2 Moo 2 Soi Watkhae, Suksawad Road, Tambol Pakklong Bangplakod, Amphoe

Phra Samut Chedi, Samutprakarn.

On 10 January 2012, the Extraordinary General Meeting of the Company’s shareholders

No. 1/2012 passed a resolution to proceed with the voluntary delisting of the Company's

shares with 39 million shares at a par value of Baht 10 each, amounting to Baht 388

million from the Stock Exchange of Thailand. Mitr Phol Sugar Corporation Limited, the

major shareholder of the Company, has expressed its intention to make a tender offer.

On 30 January 2012, the Board of Governors of the Stock Exchange of Thailand

approved the delisting of the Company’s shares from the Stock Exchange of Thailand,

in accordance with the request made by the Company. The approval has conditions

that the procedure of the delisting shall be made in compliance with the regulations of

the Stock Exchange of Thailand, Delisting of Securities B.E 2542.

The Company is in the process of the delisting of the Company’s shares from the

Stock Exchange of Thailand.

2. Basis of preparation

2.1 The financial statements have been prepared in accordance with accounting

standards enunciated under the Accounting Professions Act B.E. 2547 and their

presentation has been made in compliance with the stipulations of the Notification of

the Department of Business Development dated 28 September 2011, issued under

the Accounting Act B.E. 2543.

The financial statements in Thai language are the official statutory financial statements

of the Company. The financial statements in English language have been translated

from the Thai language financial statements.

Notes to Consolidated Financial StatementsUnited Standard Terminal Public Company Limited and its subsidiaries


58

Annual Report2011


2

The financial statements have been prepared on a historical cost basis except where

otherwise disclosed in the accounting policies.

2.2 Basis of consolidation

a) The consolidated financial statements include the financial statements of the Company and the following subsidiary companies (“the subsidiaries”):

b) Subsidiaries are fully consolidated as from the date on which the Company

obtains control, and continued to be consolidated until the date when such control

ceases.

c) The financial statements of the subsidiaries are prepared using the same

significant accounting policies as those of the Company.

d) The assets and liabilities in the financial statements of overseas subsidiary

company are translated to Baht using the exchange rates prevailing on the end of

reporting period, and revenues and expenses translated using monthly average

exchange rates. The resulting differences are shown under the caption of

“Translation adjustment” in shareholders’ equity.

e) Material balances and transactions between the Company and its subsidiary

companies have been eliminated from the consolidated financial statements.

f) Non-controlling interests represent the portion of profit or loss and net assets of

the subsidiaries that are not held by the Company and are presented separately

in the consolidated profit or loss and within equity in the consolidated statement

of financial position.

2.3 The separate financial statements, which present investments in subsidiaries under

the cost method, have been prepared solely for the benefit of the public.

Company’s name

Nature of

business

Country of

incorporation Paid-up capital

Percentage of

shareholding

2011 2010 2011 2010

Percent Percent

Mitr Phol Warehouse Co., Ltd. Warehouse Thailand Baht 5

million

Baht 5

million

80.00 80.00

Guangxi Qinzhou Zhong-tai

Service Co., Ltd.

Handling service

and Warehouse

China RMB 12

million

RMB 12

million

79.83 79.83

Aawthai Warehouses Co., Ltd. Handling service

and Warehouse

Thailand Baht 160

million

Baht 160

million

68.06 59.31

593

3. Adoption of new accounting standards during the year

During the current year, the Company and its subsidiaries adopted a number of

revised and new accounting standards, issued by the Federation of Accounting

Professions, as listed below.

Accounting standards:

TAS 1 (revised 2009) Presentation of Financial Statements

TAS 2 (revised 2009) Inventories

TAS 7 (revised 2009) Statement of Cash Flows

TAS 8 (revised 2009) Accounting Policies, Changes in Accounting Estimates

and Errors

TAS 10 (revised 2009) Events after the Reporting Period

TAS 11 (revised 2009) Construction Contracts

TAS 16 (revised 2009) Property, Plant and Equipment

TAS 17 (revised 2009) Leases

TAS 18 (revised 2009) Revenue

TAS 19 Employee Benefits

TAS 23 (revised 2009) Borrowing Costs

TAS 24 (revised 2009) Related Party Disclosures

TAS 26 Accounting and Reporting by Retirement Benefit Plans

TAS 27 (revised 2009) Consolidated and Separate Financial Statements

TAS 28 (revised 2009) Investments in Associates

TAS 29 Financial Reporting in Hyperinflationary Economies

TAS 31 (revised 2009) Interests in Joint Ventures

TAS 33 (revised 2009) Earnings per Share

TAS 34 (revised 2009) Interim Financial Reporting

TAS 36 (revised 2009) Impairment of Assets

TAS 37 (revised 2009) Provisions, Contingent Liabilities and Contingent Assets

TAS 38 (revised 2009) Intangible Assets

TAS 40 (revised 2009) Investment Property

Financial reporting standards:

TFRS 2 Share-Based Payment

TFRS 3 (revised 2009) Business Combinations

TFRS 5 (revised 2009) Non-current Assets Held for Sale and Discontinued

Operations

TFRS 6 Exploration for and Evaluation of Mineral Resources

60

Annual Report2011


4

Financial Reporting Standard Interpretations:

TFRIC 15 Agreements for the Construction of Real Estate

Accounting Standard Interpretations:

SIC 31 Revenue-Barter Transactions Involving Advertising Services

These accounting standards do not have any significant impact on the financial

statements, except for employee benefit as detailed below.

TAS 19 Employee Benefits

This accounting standard requires employee benefits to be recognised as expense in

the period in which the service is performed by the employee. In particular, an entity

has to evaluate and make a provision for post-employment benefits using actuarial

techniques. The Company and its subsidiaries previously accounted for such

employee benefits when they were incurred.

The Company and its subsidiaries changed this accounting policy in the current year

and recognised the liability in the transition period through an adjustment to the

beginning balance of retained earnings in the current year. The change has the effect

of decreasing the profit of the Company and its subsidiaries for the year 2011 by Baht

2 million, (0.06 Baht per share) (Separate financial statements: decreasing profit by

Baht 1 million, or 0.03 Baht per share). The cumulative effect of the change in the

accounting policy has been separately presented in the statements of changes in

shareholders’ equity.

4. New accounting standards issued during the years not yet effective

The Federation of Accounting Professions issued the following new/revised accounting

standards that are effective for fiscal years beginning on or after 1 January 2013.

Accounting standards:

TAS 12 Income Taxes

TAS 20 (revised 2009) Accounting for Government Grants and Disclosure of

Government Assistance

TAS 21 (revised 2009) The Effects of Changes in Foreign Exchange Rates

Accounting Standard Interpretations:

SIC 10 Government Assistance - No Specific Relation to Operating Activities

SIC 21 Income Taxes - Recovery of Revalued Non-Depreciable Assets

SIC 25 Income Taxes - Changes in the Tax Status of an Entity or its Shareholders

615

The Company’s management believes that these accounting standards will not have

any significant impact on the financial statements for the year when they are initially

applied, except for income taxes as detail below.

TAS 12 Income Taxes

This accounting standard requires an entity to identify temporary differences, which

are differences between the carrying amount of an asset or liability in the accounting

records and its tax base, and to recognize deferred tax assets and liabilities under the

stipulated guidelines.

At present, the management is evaluating the impact on the financial statements in the

year when this standard is adopted.

5. Significant accounting policies

5.1 Revenue recognition

Rendering of services

Service revenue is recognised when services have been rendered taking into account

the stage of completion.

Interest income

Interest income is recognised on an accrual basis based on the effective interest rate.

Dividends

Dividends are recognised when the right to receive the dividends is established.

5.2 Cash and cash equivalents

Cash and cash equivalents consist of cash in hand and at banks, and all highly liquid

investments with an original maturity of three months or less and not subject to

withdrawal restrictions.

5.3 Trade accounts receivable

Trade accounts receivable are stated at the net realisable value. Allowance for

doubtful accounts is provided for the estimated losses that may be incurred in

collection of receivables. The allowance is generally based on collection experience

and analysis of debt aging.

5.4 Investments

Investments in subsidiaries are accounted for in the separate financial statements

using the cost method net of allowance for loss on impairment (if any).

62

Annual Report2011


6

5.5 Investment properties

Investment properties, consisting of land not being used in operation, are measured at

cost less allowance for loss on impairment (if any).

No depreciation is provided for investment properties. On disposal of investment properties, the difference between the net disposal

proceeds and the carrying amount of the asset is recognised in profit or loss in the

period when the asset is derecognised.

5.6 Property, plant and equipment/Depreciation

Land is stated at revalued amount. Buildings and equipment are stated at cost less

accumulated depreciation and allowance for loss on impairment of assets (if any).

Land is initially recorded at cost on the acquisition date, and subsequently revalued by

independent professional appraisers to their fair values. Revaluations are made with

sufficient regularity to ensure that the carrying amount does not differ materially from

fair value at the end of reporting period.

Differences arising from the revaluation are dealt with in the financial statements as

follows:

- When a land’s carrying amount is increased as a result of a revaluation of lands

of the Company and its subsidiaries, the increase is credited directly to equity

under the heading of “Revaluation surplus on land”. However, a revaluation

increase will be recognised as income to the extent that it reverses a revaluation

decrease of the same land previously recognised as an expense.

- When a land’s carrying amount is decreased as a result of a revaluation of land of

the Company and its subsidiaries, the decrease is recognised as an expense in

the profit or loss. However, the revaluation decrease is charged to the other

comprehensive income to the extent that it does not exceed an amount already

held in “Revaluation surplus on land” in respect of the same land.

637

Depreciation of plant and equipment is calculated by reference to their costs on the

straight-line basis over the following estimated useful lives:

Land improvements - 5 - 10 years

Buildings and construction - 5 - 40 years, period of lease

Machinery and equipment - 5 - 10 years

Furniture, fixtures and office equipment - 3 - 5 years

Motor vehicles - 5 - 10 years

Depreciation is included in profit or loss.

No depreciation is provided on land and construction in progress.

An item of property, plant and equipment is derecognised upon disposal or when no future

economic benefits are expected from its use or disposal. Any gain or loss arising on

disposal of an asset is included in profit or loss when the asset is derecognised.

5.7 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an

asset that necessarily takes a substantial period of time to get ready for its intended

use or sale are capitalised as part of the cost of the respective asset. All other

borrowing costs are expensed in the period they are incurred. Borrowing costs consist

of interest and other costs that an entity incurs in connection with the borrowing of

funds.

5.8 Intangible assets - computer software

Computer software is initially recorded at cost on the acquisition date. Following initial

recognition, computer software is carried at cost less accumulated amortisation and

impairment losses (if any).

Computer software with finite live is amortised on a straight-line basis over the

economic useful life of 10 years, and tested for impairment whenever there is an

indication that the computer software may be impaired. The amortisation period and

the amortisation method of such computer software are reviewed at least at each

financial year end. The amortisation expense is charged to profit or loss.

5.9 Goodwill

Goodwill is initially recorded at cost, which equals to the excess of cost of business

combination over the fair value of the net assets acquired. If the fair value of the net

assets acquired exceeds the cost of business combination, the excess is immediately

recognised as gain in profit or loss.

64

Annual Report2011


8

Goodwill is carried at cost less impairment losses (if any). Goodwill is tested for

impairment annually and when circumstances indicate that the carrying value may be

impaired.

For the purpose of impairment testing, goodwill acquired in a business combination is

allocated to each of the Company’s group of cash-generating units that are expected

to benefit from the synergies of the combination. The Company estimates the

recoverable amount of each cash-generating units to which the goodwill relates.

Where the recoverable amount of the cash-generating unit is less than the carrying

amount, an impairment loss is recognized in profit or loss and will not be reversed in

future.

5.10 Related party transactions

Related parties comprise enterprises and individuals that control, or are controlled by,

the Company and its subsidiaries, whether directly or indirectly, or which are under

common control with the Company and its subsidiaries.

They also include associated companies and individuals which directly or indirectly

own a voting interest in the Company and its subsidiaries that gives them significant

influence over the Company and its subsidiaries, key management personnel,

directors, and officers with authority in the planning and direction of operations of the

Company and its subsidiaries.

5.11 Long-term leases

Leases of equipment which transfer substantially all the risks and rewards of

ownership are classified as finance leases. Finance leases are capitalised at the lower

of the fair value of the leased assets and the present value of the minimum lease

payments. The outstanding rental obligations, net of finance charges, are included in

other long-term payables, while the interest element is charged to profit or loss over

the lease period. The equipment acquired under finance leases are depreciated over

the shorter of the useful life of the asset and the lease period.

5.12 Foreign currencies

Transactions in foreign currencies are translated into Baht at the exchange rates ruling

at the date of the transaction. Monetary assets and liabilities denominated in foreign

currencies are translated into Baht at the exchange rates ruling at the end of reporting

period.

Gains and losses on exchange are included in profit or loss.

659

5.13 Impairment of assets

At the end of each reporting period, the Company and its subsidiaries perform

impairment reviews in respect of the property, plant and equipment, investment in

subsidiaries and other intangible assets whenever events or changes in

circumstances indicate that an asset may be impaired. The Company and its

subsidiaries also carry out annual impairment reviews in respect of goodwill. An

impairment loss is recognised when the recoverable amount of an asset, which is the

higher of the asset’s fair value less costs to sell and its value in use, is less than the

carrying amount.

An impairment loss is recognised in profit or loss. However in cases where land was

previously revalued and the revaluation was taken to equity, a part of such impairment

is recognised in equity up to the amount of the previous revaluation.

In the assessment of asset impairment if there is any indication that previously

recognised impairment losses may no longer exist or may have decreased, the

Company and its subsidiaries estimates the asset’s recoverable amount. A previously

recognised impairment loss is reversed only if there has been a change in the

assumptions used to determine the asset’s recoverable amount since the last

impairment loss was recognised. The increased carrying amount of the asset

attributable to a reversal of an impairment loss shall not exceed the carrying amount

that would have been determined had no impairment loss been recognised for the

asset in prior years. Such reversal is recognised in profit or loss unless the asset is

carried at a revalued amount, in which case the reversal, which exceeds the carrying

amount that would have been determined, is treated as a revaluation increase.

5.14 Employee benefits

Short-term employee benefits

Salaries, wages, bonuses and contributions to the social security fund are recognised

as expenses when incurred.

Post-employment benefits

Defined contribution plans

The Company, its domestic subsidiaries, and their employees have jointly established a

provident fund. The fund is monthly contributed by employees and by the Company and

its subsidiaries. The fund’s assets are held in a separate trust fund and contributions of

the Company and its subsidiaries are recognised as expenses when incurred.

66

Annual Report2011


10

Defined benefit plans

The Company and its domestic subsidiaries have obligations in respect of the

severance payments they must make to employees upon retirement under labor law.

The Company and the subsidiaries treats these severance payment obligations as a

defined benefit plan.

The obligation under the defined benefit is determined by the managements of the

Company and its subsidiaries, based on actuarial techniques, using the projected unit

credit method.

For the first-time adoption of TAS 19 Employee Benefits, the Company and its

subsidiaries elected to recognise the transitional liability, which exceeds the liability

that would have been recognised at the same date under the previous accounting

policy, through an adjustment to the beginning balance of retained earnings in the

current year.

5.15 Provisions

Provisions are recognised when the Company and its subsidiaries have a present

obligation as a result of a past event, it is probable that an outflow of resources

embodying economic benefits will be required to settle the obligation, and a reliable

estimate can be made of the amount of the obligation.

5.16 Income tax

Income tax is provided in the accounts at the amount expected to be paid to the

taxation authorities, based on taxable profits determined in accordance with tax

legislation.

Overseas subsidiary provides income tax in the accounts based on taxable profits

determined in accordance with tax legislation of its country.

6. Significant accounting judgments and estimates

The preparation of financial statements in conformity with generally accepted

accounting principles at times requires management to make subjective judgments

and estimates regarding matters that are inherently uncertain. These judgments and

estimates affect reported amounts and disclosures and actual results could differ.

Significant judgments and estimates are as follows:

6711

Leases

In determining whether a lease is to be classified as an operating lease or finance

lease, the management is required to use judgment regarding whether significant risk

and rewards of ownership of the leased asset has been transferred, taking into

consideration terms and conditions of the arrangement.

Allowance for doubtful accounts

In determining an allowance for doubtful accounts, the management needs to make

judgment and estimates based upon, among other things, past collection history,

aging profile of outstanding debts and the prevailing economic condition.

Impairment of investments

The Company treat investments as impaired when there has been a significant or

prolonged decline in the fair value below their cost or where other objective evidence

of impairment exists. The determination of what is “significant” or “prolonged” requires

judgment of the management.

Property plant and equipment/Depreciation

In determining depreciation of plant and equipment, the management is required to

make estimates of the useful lives and residual values of the plant and equipment and

to review estimate useful lives and residual values when there are any changes.

The Company and its subsidiaries measure land at revalued amounts. Such amounts

are determined by the independent appraisers using the market approach. The

valuation involves certain assumptions and estimates.

In addition, the management is required to review property, plant and equipment for

impairment on a periodical basis and record impairment losses in the period when it is

determined that their recoverable amount is lower than the carrying amount. This

requires judgments regarding forecast of future revenues and expenses relating to the

assets subject to the review.

Goodwill

The initial recognition and measurement of goodwill and subsequent impairment

testing, require management to make estimates of cash flows to be generated by the

asset or the cash generating units and to choose a suitable discount rate in order to

calculate the present value of those cash flows.

68

Annual Report2011


12

Post-employment benefits under defined benefit plans

The obligation under the defined benefit plan is determined based on actuarial

techniques. Such determination is made based on various assumptions, including

discount rate, future salary increase rate, mortality rate and staff turnover rate.

7. Related party transactions

During the years, the Company and its subsidiaries had significant business

transactions with related parties and individual. Such transactions, which are

summarised below, arose in the ordinary course of business and were concluded on

commercial terms and bases agreed upon between the Company and its subsidiaries

and those individual or related parties.

(Unit: Million Baht)

Consolidated

financial statements

Separate


Transfer Pricing

Policy

2011 2010 2011 2010

Transactions with subsidiary companies

(eliminated from the consolidated

financial statements)

Warehouse and tank rental income - - 33 13 Contract price

Land and office rental and service income - - - 1 Contract price

Machinery and equipment rental income - - - 1 Contract price

Handling and service income - - 9 2 With reference to

market price

Consultant fee income - - 5 5 Contract price

Interest Income - - - 2 Reference to MLR

Dividend income - - 11 11 Declared rate

Transactions with related companies

Handling and service income 383 203 88 54 With reference to

market price

Logistic income 291 252 137 157 With reference to

market price

Storage service income 103 67 - - With reference to

market price

Rental income 27 25 11 11 Contract price

Management fee income 9 17 - - Contract price

6913

As at 31 December 2011 and 2010, the balances of the accounts between the

Company and its subsidiaries and those related companies are as follows:

(Unit: Thousand Baht)

Consolidated Separate

financial statements financial statements

2011 2010 2011 2010

Trade accounts receivable and accrued

income - related parties (Note 9)

Subsidiary companies - - 3,794 473

Related companies (related by common

shareholders and directors) 75,717 57,495 25,856 5,874

Total trade accounts receivable and accrued

income - related parties 75,717 57,495 29,650 6,347

Dividend receivable from related party

Subsidiary company - - 3,639 10,916

Total dividend receivable from related party - - 3,639 10,916

Trade accounts payable - related parties

Related companies (related by common

shareholders and directors) 5,709 26 2,103 -

Total trade accounts payable - related parties 5,709 26 2,103 -

Deposits received - related party

Subsidiary company - - 6,497 470

Total deposits received - related party - - 6,497 470

70

Annual Report2011


14

Directors and management’s benefits

During the year ended 31 December 2011 and 2010, the Company and its subsidiaries

had employee benefit expenses payable to their directors and management as below.


Consolidated financial

statements

Separate financial

statements

2011 2010 2011 2010

Short-term employee benefits 33 31 24 21

Post-employment benefits 2 2 1 1

Total 35 33 25 22

Guarantee obligations with related parties

The Company has outstanding guarantee obligations with its related parties, as

described in Note 24.3 to the financial statements.

8. Cash and cash equivalents



2011 2010 2011 2010

Cash 899 536 160 17

Bank deposits 113,298 64,509 4,572 50,490

Total 114,197 65,045 4,732 50,507

As at 31 December 2011, bank deposits in saving accounts and fixed deposits carried

interests at the rate between 0.75 and 0.90 percent per annum (2010: between 0.50

and 0.63 percent per annum).

7115

9. Trade accounts receivable and accrued income



statements

Separate financial

statements

2011 2010 2011 2010

Trade receivables - related parties

Aged on the basis of due dates

Not yet due 47,512 27,820 16,821 2,356

Past due

Up to 3 months 14,066 21,640 2,494 1,818

3 - 6 months 122 3,874 279 77

6 - 12 months - 895 94 11

Over 12 months - 3,815 - 68

Total 61,700 58,044 19,688 4,330

Less: Allowance for doubtful debts - (3,917) - (68)

Total trade receivables - related

parties, net 61,700 54,127 19,688 4,262

Trade receivables - unrelated parties

Aged on the basis of due dates

Not yet due 16,987 15,870 4,723 6,886

Past due

Up to 3 months 17,670 13,599 8,682 6,835

3 - 6 months 970 782 23 193

6 - 12 months 519 645 - -

Over 12 months - 57 - -

Total 36,146 30,953 13,428 13,914

Less: Allowance for doubtful debts - (31) - -

Total trade receivables - unrelated

parties, net 36,146 30,922 13,428 13,914

Total trade accounts receivable - net 97,846 85,049 33,116 18,176

Accrued income

Related parties 14,017 3,368 9,962 2,085

Unrelated parties 1,935 4,384 842 3,757

Total accrued income 15,952 7,752 10,804 5,842

Total trade accounts receivable and

accrued income - net 113,798 92,801 43,920 24,018

72

Annual Report2011


16

10. Investments in subsidiary companies

Details of investments in subsidiaries as presented in separate financial statements

are as follows:



Company’s name Cost

Dividend received

during the year

2011 2010 2011 2010

Mitr Phol Warehouse Co., Ltd. 219,600 219,600 - -

Guangxi Qinzhou Zhong-tai Service Co., Ltd. 43,472 43,472 - 10,890

Aawthai Warehouses Co., Ltd. 123,964 105,764 10,889 -

Total 387,036 368,836 10,889 10,890

Less: Allowance for loss on impairment (10,933) (10,933) - -

Total investments in subsidiary companies - net 376,103 357,903 10,889 10,890

During 2011, the Company purchased 1,400,000 ordinary shares of Aawthai

Warehouses Company Limited (a subsidiary) from a minority shareholder, at price of

Baht 13 per share, with a total amount of Baht 18 million. As a result, the shareholding

percentage of the Company increased from 59.31 percent to 68.06 percent. The

Company recorded the excess of the acquisition date, amounting to Baht 5 million, in

shareholders’ equity under the caption of “Deficit on investments in subsidiary arising

as a result of acquisition of additional shares at price over than the net book value at

the acquisition date”.

On 12 May 2010, an extraordinary general meeting of the shareholders of Aawthai

Warehouses Company Limited approved the increase of its registered share capital

from Baht 140 million to Baht 160 million. The Company invested a total of Baht 20

million in shares offered in proportion to its existing shareholding and in unsubscribed

shares offered to other shareholders. As a result the percentage shareholding of the

Company increased from 53.53 percent to 59.31 percent.

7317

11. Investment properties

To comply with TAS 40 (revised 2009) Investment Property, in 2011, the Company

and a subsidiary presented their land not being used in operation as investment

properties in the statements of financial position

The net book value of investment properties as at 31 December 2011 and 2010 are

presented below.


Consolidated


Separate


2011 2010 2011 2010

Cost 179,236 179,235 162,198 162,198

Less: Allowance for impairment loss - (26,897) - (26,897)

Net book value 179,236 152,338 162,198 135,301

The fair value of the investment properties as at 31 December 2011 stated below:


Consolidated


Separate


Non-operating land 269,200 211,200

In August 2011, the Company and its subsidiary arranged for an independent

professional valuer to reappraise the value of the assets using the Market Approach,

with the valuer appraising the assets at Baht 269 million which is higher than its net

book value. As a result of the appraisal, the subsidiary recorded reverse impairment

loss of the assets amounting to Baht 27 million in the profit or loss for 2011.

The Company and its subsidiary have mortgaged non-operating land of approximately

Baht 179 million (The Company only: Baht 162 million) to secure against credit facilities

from banks as described in Note 15 to the financial statements.




ited

18

12. Property, plant and equipment



Revaluation Basis Cost Basis

Land

Land

improvement

Buildings and

construction

Machinery and

equipment

Furniture,

fixtures and

office equipment Motor vehicles

Construction in

progress Total

Cost / Revalued amount:

As at 1 January 2010 425,752 86,734 1,013,106 507,439 47,546 25,366 10,721 2,116,664

Additions - - 1,854 8,280 2,548 2,090 98,593 113,365

Disposals (54,821) (21,972) (144,592) (48,913) (4,285) (3,135) - (277,718)

Transfers - 13,694 71,695 23,225 - - (108,614) -

Capitalised interests - 127 642 39 - - - 808

Translation adjustment - - (185) (10,276) (106) (1,204) - (11,771)

As at 31 December 2010 370,931 78,583 942,520 479,794 45,703 23,117 700 1,941,348

Additions - 3,261 155 27,933 2,736 829 82,548 117,462

Disposals - - (6,744) (59,380) (15,577) (16,635) - (98,336)

Transfers - - 9,786 38,863 13 - (48,662) -

Revaluations 51,710 - - - - - - 51,710

Translation adjustment - - 110 13,308 91 686 - 14,195

As at 31 December 2011 422,641 81,844 945,827 500,518 32,966 7,997 34,586 2,026,379

75

19




Land

Land

improvement

Buildings and

construction

Machinery and

equipment

Furniture,

fixtures and

office equipment Motor vehicles

Construction in

progress Total

Accumulated depreciation: As at 1 January 2010 - 32,456 567,194 328,950 31,734 14,375 - 974,709

Depreciation for the year - 1,492 27,937 35,718 8,269 3,221 - 76,637

Disposals - (10,727) (90,455) (34,927) (3,353) (2,902) - (142,364)

Translation adjustment - - (149) (4,796) (58) (589) - (5,592)

As at 31 December 2010 - 23,221 504,527 324,945 36,592 14,105 - 903,390

Depreciation for the year - 1,996 29,943 32,629 5,062 3,285 - 72,915

Disposals - - (4,534) (34,943) (14,322) (10,987) - (64,786)

Translation adjustment - - 99 7,597 54 371 - 8,121

As at 31 December 2011 - 25,217 530,035 330,228 27,386 6,774 - 919,640

Allowance for impairment loss:

As at 1 January 2011 - - - - - - - -

Increase during the year 87,941 - - - - - - 87,941

As at 31 December 2011 87,941 - - - - - - 87,941

Net book value:

As at 31 December 2010 370,931 55,362 437,993 154,849 9,111 9,012 700 1,037,958

As at 31 December 2011 334,700 56,627 415,792 170,290 5,580 1,223 34,586 1,018,798

Depreciation for the year

2010 (Depreciation for the year was included in cost of services) 76,637





ited

20




Land

Land

improvement

Buildings and

construction

Machinery and

equipment

Furniture, fixtures

and office

equipment Motor vehicles

Construction in

progress Total

Cost / Revalued amount:

As at 1 January 2010 232,012 64,527 492,363 173,701 36,767 3,482 1,217 1,004,069

Additions - - 1,853 1,033 1,850 3 1,999 6,738

Disposals (54,821) (21,973) (144,585) (48,915) (4,150) (908) - (275,352)

Transfers - - 2,516 - - - (2,516) -

As at 31 December 2010 177,191 42,554 352,147 125,819 34,467 2,577 700 735,455

Additions - - - 6,852 1,568 413 1,599 10,432

Disposals - - - (5,302) (11,125) - - (16,427)

Transfers - - 336 - 13 - (349) -

Revaluations 51,710 - - - - - - 51,710

As at 31 December 2011 228,901 42,554 352,483 127,369 24,923 2,990 1,950 781,170

Accumulated depreciation:

As at 31 January 2010 - 29,629 286,582 121,585 25,280 3,133 - 466,209

Depreciation for the year - 828 16,151 11,780 6,893 154 - 35,806

Disposals - (10,727) (90,451) (34,927) (3,263) (861) - (140,229)

As at 31 December 2010 - 19,730 212,282 98,438 28,910 2,426 - 361,786

Depreciation for the year - 789 15,461 7,922 3,721 179 - 28,072

Disposals - - - (3,552) (10,915) - - (14,467)

As at 31 December 2011 - 20,519 227,743 102,808 21,716 2,605 - 375,391

Net book value:

As at 31 December 2010 177,191 22,824 139,865 27,381 5,557 151 700 373,669

As at 31 December 2011 228,901 22,035 124,740 24,561 3,207 385 1,950 405,779

Depreciation for the year



7721

In 2011, the Company and its subsidiary arranged for an independent professional valuer to reappraise the value of land using the Market Approach, with the valuer appraising the Company’s land at Baht 229 million which is higher than its net book value. The Company recorded revaluation surplus on land amounting to Baht 52 million in statement of comprehensive income. The subsidiary’s land recorded at fair value as at acquisition date at Baht 194 million. The independent professional valuer appraised at Baht 106 million. The Company therefore recorded loss on impairment of land amounting to Baht 88 million in the consolidated profit or loss for 2011.

Details of land carried at revalued amounts are as follows: (Unit: Thousand Baht)

Consolidated


Separate


2011 2010 2011 2010

Original cost 49,920 49,920 36,897 36,897

Revaluation surplus 192,004 140,294 192,004 140,294

Excess of the fair value of subsidiary’s

land over cost of investment in subsidiary

as of acquisition date 180,717 180,717 - -

Allowance for impairment (87,941) - - -

334,700 370,931 228,901 177,191

During 2010, the Company sold a piece of its land with structure thereon and certain equipment which located at Angthong province with a proceed of Baht 165 million. The net book value of such assets as at the disposal date was Baht 71 million. The Company had gain on sales of these assets of Baht 94 million which was presented in profit or loss. In addition, the Company sold structure and equipment which located at Ayutthaya province with a proceed of Baht 8 million and the net book value of such assets as at the disposal date was Baht 7 million (after net of allowance for impairment loss at Baht 3 million). The Company had gain on sales of these assets of Baht 1 million which was presented in profit or loss.

The Company and its subsidiaries have mortgaged land with structures thereon with a total net book value of Baht 455 million (The Company only: Baht 375 million) as collaterals for credit facilities granted by financial institutions.

As at 31 December 2011, the Company and its subsidiaries had machinery, vehicles and equipment under finance lease agreements with net book values amounting to Baht 33 million (2010: Baht 43 million).

As at 31 December 2011, certain plant and equipment items had been fully depreciated but were still in use. The gross carrying amount before deducting accumulated depreciation of those assets amounted to approximately Baht 323 million (2010: Baht 298 million) (The Company only: Baht 168 million, 2010: Baht 136 million).

78

Annual Report2011


22

13. Intangible assets - Computer software (Unit: Thousand Baht)

Consolidated


Separate


As at 31 December 2011

Cost 23,245 20,109

Less Accumlated amortization (12,252) (11,123)

Net book value 10,993 8,986

As at 31 December 2010

Cost 23,256 20,109

Less Accumlated amortization (5,754) (4,896)

Net book value 17,502 15,213

A reconciliation of the net book value of intangible assets for the years 2011 and 2010

is presented below.


Consolidated


Separate


2011 2010 2011 2010

Net book value at beginning of year 17,502 26,860 15,213 23,411

Acquisition of computer software 26 - - -

Write off - (6,738) - (6,196)

Amortisation (6,699) (2,485) (6,227) (2,002)

Translation adjustment 164 (135) - -

Net book value at end of year 10,993 17,502 8,986 15,213

As at 31 December 2011, the Company had computer software under finance lease

agreements with net book values amounting to Baht 2 million (2010: Baht 3 million).

14. Trade and other payables (Unit: Thousand Baht)


statements

Separate financial

statements

2011 2010 2011 2010

Trade payables - related parties 5,709 26 2,103 -

Trade payables - unrelated parties 43,347 40,395 23,607 15,711

Other payables for purchase of machineries 8,339 9,148 1,950 -

Accrued expenses 33,511 29,036 10,517 5,725

Total trade and other payables 90,906 78,605 38,177 21,436

79

23

15. Long-term loans


Loan Interest rate (%) Repayment schedule Consolidated

financial statements Separate

financial statements 2011 2010 2011 2010

1 Reference to MLR 16 quarterly installments commencing from March 2010

- 60,000 - 60,000

2 Reference to fixed deposit rate 36 quarterly installments commencing from June 2005

- 24,381 - 24,381

3 Reference to Prime rate 11 semi-annual installments commencing from April 2011

38,400 49,200 - -

4 Reference to MLR 16 semi-annual installments commencing from December 2004

- 9,182 - -

5 Reference to MLR 28 quarterly installments commencing from September 2011

83,600 81,220 - -

6 Fixed rate for the first two years, and reference to MLR thereafter

30 quarterly installments commencing from March 2011

63,700 72,000 - -

Total 185,700 295,983 - 84,381Less: Current portion (33,400) (59,925) - (28,230)Long-term loans from financial institutions - net of current portion 152,300 236,058 - 56,081

80

Annual Report2011


24

During 2011, a subsidiary company entered into a new loan agreement with a local

commercial bank amounting to Baht 100 million. The loan is subject to interest at fixed

rate for the first year and a rate close to the Minimum Loan Rate thereafter. The loan is

to be settled on a quarterly basis in 28 installments. The first installment is due on

30 June 2012 and settlement is to be completed within March 2019.

As at 31 December 2011, the long-term credit facility of the subsidiary which has not

yet been drawn down amounted to Baht 100 million.

These loans are secured by the mortgage of investment properties of the Company

and its subsidiary, land and premises thereon of the Company and its subsidiary, and

pledge of share certificates of subsidiary company which held by the Company and

some shareholders of the subsidiary.

The loan agreements contain covenants as specified in the agreements that, among

other things, require the Company and its subsidiaries to maintain certain debt to

equity, debt service coverage ratios and restrictions on creating commitments and

additional liabilities.

16. Liabilities under hire-purchase and finance lease agreements (Unit: Thousand Baht)



2011 2010 2011 2010Liabilities under hire-purchase and finance

lease agreements 20,059 39,998 5,686 15,078 Less : Deferred interest expenses (1,486) (4,248) (307) (1,093)

Total 18,573 35,750 5,379 13,985 Less : Portion due within one year (8,776) (17,405) (3,417) (8,605)

Liabilities under hire-purchase and finance lease agreements - net of current portion 9,797 18,345 1,962 5,380

The Company and its subsidiaries have entered into the finance lease agreements

with leasing companies for rental of machinery, office equipment and motor vehicles

for use in operation, whereby they are committed to pay rental on a monthly basis. As

at 31 December 2011, future minimum lease payments required under the finance

lease agreements were as follows:



Within 1 year 1-5 years Total

Future minimum lease payments 10 10 20

Deferred interest expenses (1) - (1)

Present value of future minimum lease payments 9 10 19

8125



Within 1 year 1-5 years Total

Future minimum lease payments 4 2 6

Deferred interest expenses - - -

Present value of future minimum lease payments 4 2 6

17. Provision for long-term employee benefits

Provision for long-term employee benefits as at 31 December 2011, which is compensations on employees’ retirement, was as follows:



statements

Separate financial

statements


employee benefits adjusted against beginning balance

of retained earnings (Note 3) 9,457 5,210

Current service cost 2,033 1,131

Interest cost 378 208

Benefits paid during the year (2,254) (1,687)

Balance at end of year 9,614 4,862

Long-term employee benefit expenses included in the profit or loss for the year ended 31 December 2011 amounted to Baht 2 million (The Company only: Baht 1 million).

Principal actuarial assumptions of the Company and its subsidiaries at the valuation

date were as follows:

2011

(% per annum)

Discount rate 4%

Future salary increase rate 5%

Staff turnover rate (depending on age of employee) 0% - 20%

82

Annual Report2011


26

18. Statutory reserve

Pursuant to Section 116 of the Public Limited Companies Act B.E. 2535, the Company

is required to set aside to a statutory reserve at least 5 percent of its net profit after

deducting accumulated deficit brought forward (if any), until the reserve reaches 10

percent of the registered capital. The statutory reserve is not available for dividend

distribution.

19. Expenses by nature

Significant expenses by nature are as follows:


Consolidated


Separate


2011 2010 2011 2010

Salary and wages and other employee

benefits 64,143 73,417 15,354 16,143

Depreciation 72,914 76,638 28,072 35,807

Amortisation expenses 6,670 2,485 6,227 2,001

Warehouse rental expenses and others 89,613 98,721 2,601 508

Transportation expenses 302,657 268,929 141,357 193,761

Warehouse handling and operating

expenses 285,948 199,515 83,178 52,605

Repair and maintenance expenses 30,066 21,123 11,364 8,692

20. Earnings per share

Basic earnings per share is calculated by dividing profit for the year attributable to

equity holders of the Company (excluding other comprehensive income) by the

weighted average number of ordinary shares in issue during the year.

8327

21. Segment information

The Company and its subsidiaries’ operations involve the provision of integrated and

comprehensive lines of land leasing services, warehousing, and commodities

handling, all of which are complementary and inter-related and are carried on in

Thailand and China. Financial information of the Company and its subsidiaries for the

years ended 31 December 2011 and 2010 are as follow:


Domestic Foreign

Eliminate of

inter-segment

revenues Consolidation

2011 2010 2011 2010 2011 2010 2011 2010

Revenues from external

customers 1,062 817 215 196 - - 1,277 1,013

Intersegment revenues 58 34 - - (58) (34) - -

Total revenues 1,120 851 215 196 (58) (34) 1,277 1,013

Segment income (loss) 351 90 (20) 3 (11) (12) 320 81

Unallocated income and expenses:

Gain (loss) on sales of property, plant and equipment (21) 89

Loss on impairment of fixed assets (88) (3)

Reverse impairment allowance of investment properties 27 -

Financial cost (18) (16)

Corporate income tax (89) (38)

Non-controlling interests of the subsidiaries (45) (11)

Profit of equity holders of the Company 86 102


Elimination of

inter-segment

Domestic Foreign revenues Consolidation

2011 2010 2011 2010 2010 2011 2010 2011

Property, plant and

equipment 876 785 52 74 91 179 1,019 1,038

Unallocated assets 814 766 28 63 (358) (424) 484 405

Total assets 1,690 1,551 80 137 (267) (245) 1,503 1,443

Transfer prices between business segments are as set out in Note 7 to the financial statements.

84

Annual Report2011


28

22. Provident fund

The Company, subsidiaries, and their employees have jointly established a provident fund in accordance with the Provident Fund Act B.E. 2530. The Company, subsidiaries, and their employees contribute to the fund monthly at a rate 5 percent of the salary. The fund, which is managed by TISCO Asset Management Company Limited, will be paid to employees upon termination in accordance with the fund rule. During the fiscal year 2011, the Company and its subsidiaries contributed Baht 3 million (2010: Baht 2 million) to the fund (the Company only: Baht 1 million, 2010: Baht 1 million).

23. Dividends

Dividends Approved by Total dividends Dividend per share

(Million Baht) (Baht)

Final dividends for 2009 Annual General Meeting of the

Shareholders on 1 April 2010 29 0.75

Total for 2010 29 0.75

Final dividends for 2010 Annual General Meeting of the

Shareholders on 7 April 2011 39 1.00

Total for 2011 39 1.00

24. Commitments and contingent liabilities

24.1 Operating lease commitments

As at the year ended 31 December 2011, the Company and its subsidiaries entered

into several agreements in respect of the lease of office building space, office

equipments, vehicle and others. The future minimum lease payments required under

these non-cancellable operating leases contracts were as follows:


Consolidated


Separate


Payable within:

1 year 26 2

2 to 5 years 51 2

More than 5 years 18 -

8529

24.2 Long-term lease commitments

As at 31 December 2011, a subsidiary company had outstanding commitments under

the long-term warehouse lease agreement with the Port Authority of Thailand (the

original term of 25 years commenced in March 1993 and the subsidiary renewed the

agreement for another 21 years) amounting to approximately Baht 976 million. Comply

under the agreement, the subsidiary is subject to certain limitations regarding to

minimum share capital, shareholders’ equity ratios and others.

24.3 Guarantees

As at 31 December 2011, there were outstanding bank guarantees of approximately

Baht 37 million issued by banks on behalf of the Company and its subsidiaries in

respect of certain performance bonds as required in the normal course of business.

These included letters of guarantee amounting to Baht 31 million to guarantee

contractual performance with the Port Authority of Thailand and Baht 6 million among

others.

25. Capital management

The primary objective of the Company’s capital management is to ensure that it has

appropriate capital structure in order to support its business and maximise shareholder

value. As at 31 December 2011, the Group's debt-to-equity ratio was 0.34:1 (2010:

0.43:1) and the Company's was 0.07:1 (2010: 0.15:1).

26. Reclassification

To comply with the Notification of the Department of Business Development relating to

the financial statement presentation as described in Note 2 and as the result of the

adoption of revised and new accounting standards as described in Note 3, certain

amounts in the financial statements for the year ended 31 December 2010 have been

reclassified to conform to the current year’s classification, without any effect to the

previously reported profit or shareholder’s equity.

27. Approval of financial statements

These financial statements were authorised for issue by the Company’s Board of

Directors on 22 February 2012.

86

Annual Report2011


Audit fee

For this fiscal period, the company and 2 Subsidiaries Company in Thailand paid the audit fee of Baht 1,000,000 to Ernst & Young Office Limited. This is the company where the auditors are working, and to the persons or the businesses concerned with the auditors and the company where they are working.

Non Audit Fee

The company and its subsidiaries paid a collective amount of Baht 640,000 as the non-audit fee (the fee for conducting an internal audit for the Company) to Midas Audit and Advisory Company Limited.

Auditor Remuneration

United Standard terminal pUblic company limited

บริษัท ยูไนเต็ด แสตนดาร์ด เทอร์มินัล จำากัด (มหาชน)

Head offifice / Samutprakarn Warehouse

78/2 moo 2 Soi Watkae Suksawad road,

prasamutjedi, Samutprakarn 10290

telphone : 0-2861-7888

Fax : 0-2861-7898

www.ust.co.th

สำานักงานใหญ่ / คลังสินค้าสมุทรปราการ

เลขที่ 78/2 หมู่ 2 ซ.วัดแค ถ.สุขสวัสดิ์

ต.ปากคลองบางปลากด

อ.พระสมุทรเจดีย์ จ.สมุทรปราการ 10290

โทรศัพท์ 0-2861-7888

โทรสาร 0-2861-7898

Documents

Annual Report รายงานประจำาปี2554ust.co.th/upload/financial/98_13291.pdfTo be a modern integrated logistics ... 28.68 12.35 16.30 22.08 ... addition, the