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
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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
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Annual Report2011
United Standard Terminal Public Company Limited
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
United Standard Terminal Public Company Limited
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
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Annual Report2011
United Standard Terminal Public Company Limited
• 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.
Million baht 2011 2010 2009
TotalShareholders’Equity 1,123.97 1,006.04 975.73
Total service revenues
Asof31December2011,TheCompanyreportedthetotalservicerevenueofBaht1,266.87millioncomparethesamelastyearBaht915.41million-increasedbyBaht351.46millionor38.39percent.Duetoincreasinginservicequantitiesandserviceprice.
Million baht 2011 2010 2009
Total service revenues 1,266.87 915.41 996.22
The“otherincome”itemsoftheyear2011totalingBaht97.99millioncomparedwiththeyear2010ofBaht97.99millionorthedecreasedinotherincomeofBaht87.89millionmainlyfromInyear2010,thecompanysoldlandwithstructurethereonandequipmentwhichlocatedinAngthongprovinceofBaht165million.TheCompanyhadgainonsalesoftheseassetsofBaht94million.
Million baht 2011 2010 2009
other income 10.10 97.99 13.70
Key Financial Results
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Annual Report2011
United Standard Terminal Public Company Limited
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.
Million baht 2011 2010 2009
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.
Million baht 2011 2010 2009
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.
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Annual Report2011
United Standard Terminal Public Company Limited
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
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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
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Annual Report2011
United Standard Terminal Public Company Limited
Mr. Grish AttagrishIndependent Director / Audit Committee MemberEducation and Experience •M.B.A.(Marketing),ChulalongkornUniversity•B.A.(Finance),ChulalongkornUniversity•FEVP,DivisionHead,CommercialBankingDivision2, SiamCommercialBankPCL.
Percentage of held : -
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.
Program for Professional Directors• DirectorsCertificationProgram#36/2003, ThaiInstituteofDirectorsAssociation(IOD)
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
Program for Professional Directors• DirectorsCertificationProgram#90/2007, ThaiInstituteofDirectorsAssociation(IOD)
Percentage of held : -
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
Program for Professional Directors• DirectorsCertificationProgram#26/2003, ThaiInstituteofDirectorsAssociation(IOD)
Percentage of held : -
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
Percentage of held : -
Miss. Kannika VongkusolkitDirector
Education and Experience • ShanghaiInternationalStudiesUniversity• MSc.ManagementwithFinance,UniversityofBath• BachelorOf Economics (InternationalProgram)
Thammasat University • Director,MitrPholWarehouse• Management Trainee, Future Market and RiskManagementDepartment
Percentage of held : -
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07 08 09
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Annual Report2011
United Standard Terminal Public Company Limited
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
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Annual Report2011
United Standard Terminal Public Company Limited
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
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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
United Standard Terminal Public Company Limited
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
United Standard Terminal Public Company Limited
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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United Standard Terminal Public Company Limited
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
United Standard Terminal Public Company Limited
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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United Standard Terminal Public Company Limited
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.
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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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United Standard Terminal Public Company Limited
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
United Standard Terminal Public Company Limited
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%
1.Mr.Vitoon Vongkusolkit
2.Mr.Isara Vongkusolkit
3.Mr.Chanin Vongkusolkit
4.Mr.Jirasak Vongkusolkit
5.Mr.Amnuay Kanjanakumnurd
6.Mr.Taveevat Taveepiyamaporn
7.MissKannika Vongkusolkit
Aawthai Warehouses CompanyLimited
(warehouse and Terminal)
1)SubsidiariesCompanywithUnitedStandardTerminalPlcholds59.31%
2)ThereisonejointManagingDirector,Mr.AmnuayKanjanakumnurd
3)Thereare4JointDirectorasfollows:
1.Mr.Isara Vongkusolkit
2.Ms.Ariya Wattana
3Mr.Sopone Tirabanchasak
4.Mr.Amnuay Kanjanakumnurd
As of 31 December 2010
1.UnitedStandardTerminalPLC 59.31%
2.Mr.IsaraVongkusolkit 10.00%
3.RachasrimaSugarCo.,Ltd. 4.07%
4.AngthongSugarTerminal.,Ltd. 3.87%
5.KumphawapiSugarCo.,Ltd. 3.17%
1.Mr.Viboon Panitwong
2.Mr.Isara Vongkusolkit
3.MrYuthana Panitpichetwong
4.Mr.Teera Nawangkanai
5.Mr.Wivat Tangpong
6.Mr.Amnuay Kanjanakumnurd
7.Mr.Kanit Sawangvaroros
8. Miss Ariya Wattana
9.Mr.Sopone Tirabanchasak
34 Annual Report2011
United Standard Terminal Public Com
pany Limited
ConnectedPersons/TypeofBusiness Description of Relationship MajorShareholders ListofBoardofDirector
GuangxiQinzhouZhong-TaiServiceCompanyLimited
(warehouse and Terminal)
1) SubsidiariesCompanywithUnitedStandardTerminalPlcholds79.83%
2) There are 1 Joint Director as follows :
1.Mr.Amnuay Kanjanakumnurd
As of 31 December 2010
1.UnitedStandardTerminalPLC 79.83%
2.GuangxiRongguiTradeCo.,Ltd.20.17%
1.Mr.Soonthorn Vongkusolkit
2.Mr.Liu Jianfeng
3.Mr.Amnuay Kanjanakumnurd
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.
As of 31 December 2010
1.Mitr Siam Sugar 99.99%
1.Mr.Vitoon Wongkusolkit
2.Mr.Isara Vongkusolkit
3.Mr.Chanin Vongkusolkit
4.Mr.Banthoeng Vongkusolkit
5.Mr.Chusak Vongkusolkit
6.Mr.Padung Dechakarin
7.Mr.Taveevat Taveepiyamaporn
8Wg.Cmr.Laksami Vongkusolkit
9.Mr.KrisdaMonthienvichienchai
10.Mr.Verajet Vongkusolkit
11.Dr.Jeradej Ausawad
35
ConnectedPersons/TypeofBusiness Description of Relationship MajorShareholders ListofBoardofDirector
UnitedFarmerandIndustryCompanyLimited (ProductionandDistributionofSugarand Molasses )
1) Beingoneofthemajorsharehold-ers of United Standard Terminal Plcholding21.00%ofitspaid-upcapital
2) ThemajorshareholderistheVongkusolkitfamilywhichisalsooneofmajorshareholdersofUnitedStandardTerminalPlc.
3) There are 2 Joint Director as follows :
1.Mr.VitoonVongkusolkit
2.Mr.IsaraVongkusolkit
4) StorageandhandlingforSugarandMolasses.
As of 31 December 2010
1.MitrPholSugarCorp.,Ltd 87.56%
1.Mr.Vitoon Wongkusolkit
2.Mr.Isara Vongkusolkit
3.Mr.Banthoeng Vongkusolkit
4.Mr.Taveevat Taveepiyamaporn
5.Ms.Jintana Kanjanakumnurd
6Mr.Sukkarn Wattanavekin
7.Ms.Chayavadee Chaianan.
8.Mr.Krisda Monthienvichienchai
9.Mr.Verajet Vongkusolkit
MitrKalasinSugarCompanyLimited
(ProductionandDistributionofSugarand Molasses )
1) TheMajorShareholderisUnitedFarmerandIndustryCo.,Ltd.
2) There are 2 Joint Director as follows :
1.Mr.VitoonWongkusolkit
2.Mr.IsaraVongkusolkit
3) Storage and handling for Sugar and Molasses.
As of 31 December 2010
UnitedFarmerandIndustryCo.,Ltd.
99.99%
1.Mr.Vitoon Wongkusolkit
2.Mr.Isara Vongkusolkit
3.Mr.Banthoeng Vongkusolkit
4.Mr.Taveevat Taveepiyamaporn
5.Ms.Jintana Kanjanakumnurd
6Mr.Sukkarn Wattanavekin
7.Ms.Chayavadee Chaianan.
8.Mr.Krisda Monthienvichienchai
PacificSugarCorporationCompanyLimited (Shipper)
1) TheMajorShareholderisMitrPholSugarCorp.,Ltd.
2) ThemajorshareholderistheVongkusolkitfamilywhichisalsooneofmajorshareholdersofUnitedStandardTerminalPlc.
3) There are 2 Joint Director as follows :
1.Mr.Isara Vongkusolkit
2.Mr.Jirasak Vongkusolkit
As of 31 December 2010
1.MitrPholSugarCorp.,Ltd. 25.00%
2.TheVongkusolkitFamily 67.65%
3.Mr.TaveevatTaveepiyamaporn 7.35%
1Mr.Isara Vongkusolkit
2.Mr.Jirasak Vongkusolkit
3.Mr.Krisda Monthienvichienchai
4.Mr.Kanong Sakphet
36 Annual Report2011
United Standard Terminal Public Com
pany Limited
ConnectedPersons/TypeofBusiness Description of Relationship MajorShareholders ListofBoardofDirector
MitrPhuViangSugarCompanyLimited(ProductionandDistributionofSugarand Molasses )
1) TheMajorShareholderisUnitedFarmerandIndustryCo.,Ltd
2) There are 2 Joint Director as follows :
1.Mr.Isara Vongkusolkit
3) Storage and handling for Sugar and Molasses.
As of 31 December 2010
UnitedFarmerandIndustryCo.,Ltd
99.99%
1Mr.Isara Vongkusolkit
2.Mr.Banthoeng Vongkusolkit
3.Mr.Krisda Monthienvichienchai
SingburiSugarCompany (ProductionandDistributionofSugarand Molasses )
1) There are 2 Joint Director as follows :
1.Mr.Isara Vongkusolkit
2.Mr.Jirasak Vongkusolkit
2) Storage and handling for Sugar and Molasses
As of 31 December 2010
1.TheVongkusolkitFamily 49.61%
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
5.Mr.Isara Vongkusolkit
6.Mr.Padung Dechakarin
7.Mr.Banthoeng Vongkusolkit
8.Mr.Krisda Monthienvichienchai
9.Mr.Jirasak Vongkusolkit
UfinvesCompanyLimited 1) BeingoneofthemajorshareholdersofUnitedStandardTerminalPlc holding1.03%ofitspaid-upcapital
2) Themajorshareholderisthe VongkusolkitfamilywhichisalsooneofmajorshareholdersofUnitedStandardTerminalPlc.
3) There are 2 Joint Director as follows :
1.Mr.Vitoon Wongkusolkit
2.Mr.Verajet Vongkusolkit
As of 31 December 2010
1.TMTCapital 100.00%
1.Mr.Chanin Vongkusolkit
2.Mr.Verajet Vongkusolkit
3.Mr.Soonthorn Vongkusolkit
4.Mr.Vitoon Wongkusolkit
5.Ms.Jintana Kanjanakumnurd
6.MrMatee Auapinyakyk
7.Mr.Banjerd Vongkusolkit
8.Mr.Sawatdiparp Kantatham
9.Mr.Prachub Trinikorn
10.Mr.Ongart Auapinyakul
37
ConnectedPersons/TypeofBusiness Description of Relationship MajorShareholders ListofBoardofDirector
PanelPlusCompanyLimited Thereis1jointDirectorasfollows:
1.Mr.Isara Vongkusolkit
As of 31 December 2010
1.MitrpholSugarCorp.Ltd 76.12%
1.Mr.Isara Vongkusolkit
2.Mr.Padung Dechakarin
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) ThemajorshareholderistheVongkusolkitfamilywhichisalsooneofmajorshareholdersofUnitedStandardTerminalPlc.
3) There are 2 Joint Director as follows :
1.Mr.Vitoon Vongkusolkit
2.Mr.Isara Vongkusolkit
As of 31 December 2010
1.TheVongkusolkitFamily 92.00%
2.TheKanjanakumnurdFamily 6.00%
3.ThePuthapongsiriporn 2.00%
1.Mr.Kamol vongkusolkit
2.Mr.Soonthorn Vongkusolkit
3.Mr.Vitoon Vongkusolkij
4.Mr.Isara Vongkusolkit
5.Mr.Chanin Vongkusolkit
6.Ms.Jintana Vongkusolkit
7.Mr.Verajet Vongkusolkit
8.MissArada Vongkusolkit
9.Mr.Banjerd Vongkusolkit
38 Annual Report2011
United Standard Terminal Public Com
pany Limited
ConnectedPersons/TypeofBusiness Description of Relationship MajorShareholders ListofBoardofDirector
MitrPhloBioFuelCompanyLimited Thereare4JointDirectorasfollows:
1.Mr.Vitoon Vongkusolkit
2.Mr.Isara Vongkusolkit
3.Mr.Jirasak Vongkusolkit
4.Mr.Amnuay Kanjanakumnurd
As of 31 December 2010
1. MPEnergyCo.Ltd. 55.26%
2. TheVongkusolkitFamily 30.06%
3. TheKanjanakumnurdFamily 8.24%
4. EasternsugarCo.,Ltd 3.16%
1.Mr.Vitoon Vongkusolkij
2.Mr.Isara Vongkusolkit
3.Mr.Banthoeng Vongkusolkit
4.Mr.Jirasak Vongkusolkit
5.Mr.Krisda Montienvichienchai
6.Mr.Pravit Prakitsri
7.Ms.Supavee Vongkusolkit
8.Mr.Amnuay Kanjanakumnurd
BakacompanyLimited There are 3Joint Director as follows :
1.Mr.Sopone Tirabanchasak
2.Mr.Amnuay Kanjanakumnurd
As of 31 December 2010
1.TheKanjanakumnurdFamily 60.00%
2.TheTirabanchasakFamily 20.00%
3.ThePhanvirojFamily 20.00%
1.Mr.Pradit Kanjanakumnurd
2.Mr.Sopone Tirabanchasak
3.Mr.Tavee Phanviroj
4.Mr.Amnuay Kanjanakumnurd
5.Mr.Chukiat Kanjanakumnurd
MitrLaoSugarCompanyLimited There are 2 Joint Director as follows :
1.Mr.Vitoon Vongkusolkit
2.Mr.Isara Vongkusolkit
As of 31 December 2010
1.MitrpholSugarCorp.Limited
2.Tate&LyleCompanyLimited
1.Mr.Isara Vongkusolkit
2.Mr.Vitoon Vongkusolkit
3.Mr.Banthoeng Vongkusolkit
4.Mr.Krisda Montienvichienchai
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
• TransportationIncome6.86MillionBaht
• DividendIncome10.89MillionBaht
• OtherIncome0.42MillionBaht
AawthaiWarehouseCo.,Ltd 21.77
3. TheCompanyexecuted the connected transactionwithGuangxiQinzhouZhongtaiCompanyLimited
• Managementfeeserviceincome1.13MillionBaht
Guangxi Qinzhou ZhongtaiCompanyLimited
1.13
4. TheCompanyexecutedtheconnectedtransactionwithMitrPholSugarCorp.,Ltd
• HandlingandServiceincome10.02MillionBaht
• TransportationIncome2.06MillionBaht
• EquipmentRentalincome1.77MillionBaht
• OtherIncome1.74MillionBaht
MitrPholSugarCorp.,Ltd 15.59
5. TheCompanyexecuted the connected transactionwith MitrKalasinSugarCo.,Ltd
• HandlingandServiceincome2.43MillionBaht
• TransportationIncome6.90MillionBaht
• EquipmentRentalincome1.21MillionBaht
MitrKalasinSugarCo.,Ltd 10.54
6. TheCompanyexecutedtheconnectedtransactionwithSingburiSugarCo.,Ltd
• HandlingandServiceincome9.76MillionBaht
• Transportationincome0.55MillionBaht
• EquipmentRentalincome1.13MillionBaht
SingburiSugarCo.,Ltd 11.44
40
Annual Report2011
United Standard Terminal Public Company Limited
ConnectedTransactions RelatedCompanies Transaction Value
(Million Baht)7. TheCompanyexecuted the connected transactionwith
United
• FarmerandIndustryCo.,Ltd
• HandlingandServiceincome40.85MillionBaht
• Transportationincome108.25MillionBaht
• EquipmentRentalincome6.78MillionBaht
United Farmer and Industry Co.,Ltd
155.88
8. TheCompanyexecutedtheconnectedtransactionwithMitrSiamSugarCo.,Ltd
• Transportationincome0.20MillionBaht
MitrSiamSugarCo.,Ltd 0.20
9. TheCompanyexecuted the connected transactionwithPanelPlusCo.,Ltd
• Transportationincome6.19MillionBaht
PanelPlusCo.,Ltd 6.19
10. TheCompanyexecutedtheconnectedtransactionwithBakaCo.,Ltd
• HandlingandServiceincome0.01MillionBaht
• Transportationincome3.04MillionBaht
MItrPuviengSugarCo.,Ltd 0.13
MitrPholwarehouseCo.,Ltd
11. TheCompanyexecuted the connected transactionwith MitrPholSugarCorp.,Ltd
• StorageIncome5.71MillionBaht
MitrPholSugarCorp.,Ltd 5.71
12. TheCompanyexecutedtheconnectedtransactionwithMitrKalasinSugarCo.,Ltd
• StorageIncome0.99MillionBaht
MitrKalasinSugarCo.,Ltd 0.99
13 TheCompanyexecuted the connected transactionwithSingburiSugarCo.,Ltd
• StorageIncome4.59MillionBaht
SingburiSugarCo.,Ltd 4.59
14. TheCompanyexecutedtheconnectedtransactionwithUnited
• FarmerandIndustryCo.,Ltd
• StorageIncome14.57MillionBaht
United Farmer and Industry Co.,Ltd
14.57
15. TheCompanyexecutedtheconnectedtransactionwithMitrLaoSugarCo.,Ltd
• HandlingandServiceincome1.50MillionBaht
• TransportationIncome42.04MillionBaht
MitrLaoSugarCo.,Ltd 43.54
41
ConnectedTransactions RelatedCompanies Transaction Value
(Million Baht)
16. TheCompanyexecuted the connected transactionwith MitrPholBioFuleCo.,Ltd.
• HandlingandServiceincome1.02MillionBaht
• TransportationIncome5.62MillionBaht5.62MillionBaht
MitrPholBioFuelCo.,Ltd. 6.64
17. TheCompanyexecutedtheconnectedtransactionwithBAKACo.,Ltd
• HandlingandServiceincome0.27MillionBaht
• TransportationIncome19.17MillionBaht
BAKACo.,Ltd 19.44
18. TheCompanyexecuted the connected transactionwithSawannakhetCo.,Ltd
• HandlingandServiceincome1.87MillionBaht
SawannakhetCo.,Ltd. 1.01
19. TheCompanyexecutedtheconnectedtransactionwithPanelPlusCo.,Ltd
• Storageincome0.06MillionBaht
PanelPlusCo.,Ltd 0.06
AawthaiwarehouseCo.Ltd
20. TheCompanyexecuted the connected transactionwith MitrPholSugarCorp.,Ltd
• Storageincome1.16MillionBaht
• HandlingandServiceincome7.95MillionBaht
MitrPholSugarCorp.,Ltd 9.11
21. TheCompanyexecutedtheconnectedtransactionwithMitrKalasinSugarCo.,Ltd
• StorageIncome12.76MillionBaht
• HandlingandServiceincome59.92MillionBaht
MitrKalasinSugarCo.,Ltd 72.68
22 TheCompanyexecuted the connected transactionwithSingburiSugarCo.,Ltd
• StorageIncome0.76MillionBaht
• HandlingandServiceincome3.16MillionBaht
SingburiSugarCo.,Ltd 3.92
23. TheCompanyexecutedtheconnectedtransactionwithUnited
• FarmerandIndustryCo.,Ltd
• StorageIncome25.50MillionBaht
• HandlingandServiceincome115.87MillionBaht
United Farmer and Industry Co.,Ltd
141.79
24. TheCompanyexecutedtheconnectedtransactionwithMitrLaoSugarCo.,Ltd
• StorageIncome2.29MillionBaht
• HandlingandServiceincome5.75MillionBaht
MitrLaoSugarCo.,Ltd 8.04
25. TheCompanyexecutedtheconnectedtransactionwithPacificSugarCorporationCo.,Ltd
• StorageIncome0.16MillionBaht
Pacific Sugar CorporationCo.,Ltd
0.16
42
Annual Report2011
United Standard Terminal Public Company Limited
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
United Standard Terminal Public Company Limited
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 Tewminal public Company Limited
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
As at 31 December 2011 and 2010
49
United Standard Terminal Public Company Limited and its subsidiaries
Statements of financial position (continued)
As at 31 December 2011 and 2010
(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
The accompanying notes are an integral parts of the financial statements.
Consolidated financial statements Separate financial statements
Statements of Financial Position (Continued)United Standard Terminal Public Company Limited and its subsidiaries
As at 31 December 2011 and 2010
The accompanying notes are an integral part of these financial statements.
50
Annual Report2011
United Standard Tewminal public Company Limited
United Standard Terminal Public Company Limited and its subsidiaries
Statements of financial position (continued)
As at 31 December 2011 and 2010
(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
- - - -
The accompanying notes are an integral parts of the financial statements.
Director
Consolidated financial statements Separate financial statements
Statements of Financial Position (Continued)United Standard Terminal Public Company Limited and its subsidiaries
As at 31 December 2011 and 2010
The accompanying notes are an integral part of these financial statements.
51
United Standard Terminal Public Company Limited and its subsidiaries
Statements of comprehensive income
For the years ended 31 December 2011 and 2010
(Unit: Baht)
Consolidated financial statements Separate financial statements
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
The accompanying notes are an integral parts of the financial statements.
United Standard Terminal Public Company Limited and its subsidiaries
For the years ended 31 December 2011 and 2010
The accompanying notes are an integral part of these financial statements.
Statements of Comprehensive Income
52
Annual Report2011
United Standard Tewminal public Company Limited
United Standard Terminal Public Company Limited and its subsidiaries
Statements of comprehensive income (continued)
For the years ended 31 December 2011 and 2010
(Unit: Baht)
Consolidated financial statements Separate financial statements
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
The accompanying notes are an integral parts of the financial statements.
United Standard Terminal Public Company Limited and its subsidiaries
For the years ended 31 December 2011 and 2010
The accompanying notes are an integral part of these financial statements.
Statements of Comprehensive Income (Continued)
53
United Standard Terminal Public Company Limited and its subsidiaries
Statements of changes in shareholders' equity
For the years ended 31 December 2011 and 2010
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
Unappropriated retained earnings transferred
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
- -
The accompanying notes are an integral parts of the financial statements.
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
For the years ended 31 December 2011 and 2010
54 Annual Report2011
United Standard Tewm
inal public Company Lim
ited
United Standard Terminal Public Company Limited and its subsidiaries
Statements of changes in shareholders' equity (continued)
For the years ended 31 December 2011 and 2010
(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
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)
Balance as at 31 December 2010 387,718,120 150,000,000 37,800,000 138,147,089 140,294,447 140,294,447 853,959,656
Balance as at 31 December 2010 387,718,120 150,000,000 37,800,000 138,147,089 140,294,447 140,294,447 853,959,656
Cumulative effect of change in accounting policy for
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
Unappropriated retained earnings transferred
to statutory reserve - - 2,200,000 (2,200,000) - - -
Balance as at 31 December 2011 387,718,120 150,000,000 40,000,000 181,259,895 192,003,875 192,003,875 950,981,890
The accompanying notes are an integral parts of the financial statements.
Retained earnings
Separate financial statements
Statements of Comprehensive Income (Continued)United Standard Terminal Public Company Limited and its subsidiaries
For the years ended 31 December 2011 and 2010
55
United Standard Terminal Public Company Limited and its subsidiaries
Cash flow statements
For the years ended 31 December 2011 and 2010
(Unit: Baht)
Consolidated financial statements Separate financial statements
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
The accompanying notes are an integral parts of the financial statements.
United Standard Terminal Public Company Limited and its subsidiaries
For the years ended 31 December 2011 and 2010
The accompanying notes are an integral part of these financial statements.
Cash Flow Statements
56
Annual Report2011
United Standard Tewminal public Company Limited
United Standard Terminal Public Company Limited and its subsidiaries
Cash flow statements (continued)
For the years ended 31 December 2011 and 2010
(Unit: Baht)
Consolidated financial statements Separate financial statements
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
The accompanying notes are an integral parts of the financial statements.
United Standard Terminal Public Company Limited and its subsidiaries
For the years ended 31 December 2011 and 2010
The accompanying notes are an integral part of these financial statements.
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
For the years ended 31 December 2011 and 2010
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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
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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).
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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.
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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.
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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.
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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
financial statements
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
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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.
(Unit: Million Baht)
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
(Unit: Thousand Baht)
Consolidated financial statements Separate financial statements
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
(Unit: Thousand Baht)
Consolidated financial
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
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10. Investments in subsidiary companies
Details of investments in subsidiaries as presented in separate financial statements
are as follows:
(Unit: Thousand Baht)
Separate financial statements
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.
(Unit: Thousand Baht)
Consolidated
financial statements
Separate
financial statements
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:
(Unit: Thousand Baht)
Consolidated
financial statements
Separate
financial statements
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.
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12. Property, plant and equipment
(Unit: Thousand Baht)
Consolidated financial statements
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
(Unit: Thousand Baht)
Consolidated financial statements
Revaluation Basis Cost Basis
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
2011 (Depreciation for the year was included in cost of services) 72,915
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(Unit: Thousand Baht)
Separate financial statements
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 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
2010 (Depreciation for the year was included in cost of services) 35,806
2011 (Depreciation for the year was included in cost of services) 28,072
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
financial statements
Separate
financial statements
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).
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United Standard Tewminal public Company Limited
22
13. Intangible assets - Computer software (Unit: Thousand Baht)
Consolidated
financial statements
Separate
financial statements
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.
(Unit: Thousand Baht)
Consolidated
financial statements
Separate
financial statements
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)
Consolidated financial
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
(Unit: Thousand Baht)
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
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United Standard Tewminal public Company Limited
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)
Consolidated financial statements
Separate financial statements
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:
(Unit: Million Baht)
Consolidated financial statements
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
(Unit: Million Baht)
Separate financial statements
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:
(Unit: Thousand Baht)
Consolidated financial
statements
Separate financial
statements
Cumulative effect of change in accounting policy for
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%
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Annual Report2011
United Standard Tewminal public Company Limited
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:
(Unit: Thousand Baht)
Consolidated
financial statements
Separate
financial statements
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:
(Unit: Million Baht)
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
(Unit: Million Baht)
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.
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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:
(Unit: Million Baht)
Consolidated
financial statements
Separate
financial statements
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.
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Annual Report2011
United Standard Tewminal public Company Limited
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
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เลขที่ 78/2 หมู่ 2 ซ.วัดแค ถ.สุขสวัสดิ์
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อ.พระสมุทรเจดีย์ จ.สมุทรปราการ 10290
โทรศัพท์ 0-2861-7888
โทรสาร 0-2861-7898