Building for Growth
ANNUAL REPORT 2012
Contents 12
Financial Highlights
14
Vision and Mission
15
Chairman‘s Message
16
CEO’s Message 18
20
Building for Growth Board of Directors
22 25 26 30 34 35
Management Team Organization Chart Calend Calendar of Events Busine Business Characteristics Revenue Structure Reven
30
Risk FFactors
38 39
Share Shareholders Structure Management Structure Manag
49 53
Corpo Corporate Governance Divide Dividend Policy
54
Related Transactions Re
60
Ma Management Discussion and Analysis
62
Re Report of Board of Directors’ Responsibilities for Financial Statements
63
Re Report from the Audit Committee
64
Fin Financial Statements
120
General Information
2
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
3
DSGT’s Products Through our continued focus on consumer understanding and product innovations, we strive to develop and offer a range of products that meet our consumer needs in both baby and adult categories and in both tape and pants formats.
AANNUAL NNUAL REPORT REPORT 2012 2012
4
DSGT’s Customers and Consumers We strive to be consumer and customer centric in our approach and combine product innovations and operational excellence to deliver productsand andconsumer services The Company has achieved the customer that servewe theare needs of ourBaby consumers customers. We needs, the No.2 Diaper and Brand in Malaysia believe that Sales meeting evolving needsinofThailand. our consumers and and No.1 in Adult Diapers customers are critical to sustaining superior performance and in driving future growth.
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
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ANNUAL REPORT 2012
6
DSGT’s Production Bases
Through decades of dedication and experience in disposable diapers care, our operation base spans across SEA region with key operating plants in Thailand, Malaysia and Indonesia, enabling the Group to leverage technology development and economies of scale and ef¿ciencies to tap current and future opportunities.
DDSG SG IINTERNATIONAL NTERNATIONAL ((THAILAND) THAILAND) PPUBLIC UBLIC CCOMPANY OMPANY LLIMITED IMITED
7
Thailand
Malaysia
Indonesia
AANNUAL NNNUAL REPORT REPORT 2012 2012
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DDSG SG IINTERNATIONAL NTERNATTIONAL ((THAILAND) THAILAND) PPUBLIC UBLIC CCOMPANY OMPANY LLIMITED IMITED
9
DSGT’s New Distribution Center in Thailand
Our second custom-built production and warehouse facility in Thailand was operational in August 2012 and reaf¿rms the Group’s commitment to Thailand as well as the con¿dence that we see signi¿cant growth opportunities in Thailand. As the regional center for SEA, this facility will be critical to drive the product and technology innovations and economies of scale to support future growth in Thailand and also export markets.
AANNUAL NNUAL REPORT REPORT 2012 2012
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New Factory and Distribution Center in Malaysia Our 多rst custom-built and fully-owned integrated production and distribution center facility in Malaysia will be operational early 2013. The integration of production and Raw Material and Finished Goods warehousing and logistics will enable economies of scale in addition to meeting future capacity demands as the business strives for market leadership. DSG INTERNATIONAL IONAAL (TH (THAILAND) HAILAANDD) PPUBLIC UBLLIC CCOMPANY OMPANNY LLIMITED IMITED
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AANNUAL NNUAL REPORT REPORT 2012 2012
12 Financial Highlights Financial summary from the Audited Financial Statements STATEMENT OF INCOME
12
Year
Year
09
10
11
775.55
10
273.98
09
11
12
Year
12
Year
08
09
10
11
899.99
800 600 400 200 0
599.33 898.99
Weighted Average Shares (million)**
0.71
08
08
387.08
12
265.71
6,768.12
5,774.80
4,420.38
11
879.04
11
0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0
0.25
640.27
10
201.64
364.23
227.37
million Baht
311.37
09
10
EPS (Baht)**
Net Profit attributable to owners of the parent
08
09
351.28
08
869.69
Year
894.36
12
700 600 500 400 300 200 100 0
0.22
11
3,468.72
2,911.08
6,708.73
5,741.48
4,367.16
10
Profit Before Interest & Tax
0.41
09
Total Revenue
0.36
08
3,436.82
2,903.25
million Baht
Revenue from Sales
12
Year
FOR THE YEAR ENDED 31 DECEMBER
STATEMENT OF INCOME (MILLION BAHT) Revenue from Sales Total Revenue Profit Before Interest & Tax Net Profit attributable to owners of the parent EPS (Baht)** Number of Weighted Average Shares (million)**
2012
6,708.73 6,768.12 775.55 640.27 0.71 899.99
2011
5,741.48 5,774.80 273.98 201.64 0.22 898.99
2010
2009
2008
4,367.16 4,420.38 387.08 364.23 0.41 879.04
3,436.82 3,468.72 351.28 311.37 0.36 869.69
2,903.25 2,911.08 265.71 227.37 0.25 894.36
** EPS and number of weighted average shares for the year 2008 - 2011 has been restated for comparison purpose due to stock dividend distribution in the year 2012
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
13
Financial Highlights
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER
million Baht Total Assets
08
Year
1,828.78
09
2,241.89
10
3,043.23
11
4,308.46
12
Total Liabilities
08
Year
5,614.52
753.39
09
985.98
10
1,553.87 2,722.82
11 12
Total Equity
3,543.28
08
Year
1,063.45
09
1,233.13
10
1,489.36
11
1,585.64
12
2,071.23
Non-Controlling Interest
million Baht
AS AT 31 DECEMBER
22.78
STATEMENT OF FINANCIAL POSITION (MILLION BAHT)
Total Assets
11.94
Total Liabilities
08
Total Equity
09
10
11
12 Year
Non-Controlling Interest
2012
5,614.52 3,543.28 2,071.23 -
2011
2010
2009
2008
4,308.46 3,043.23 2,241.89 1,828.78 2,722.82 1,553.87 958.98 753.39 1,585.64 1,489.36 1,233.13 1,063.45 22.78 11.94
ANNUAL REPORT 2012
14
Vision To be the leading disposable diaper manufacturer in South East Asia
Mission To provide products and services of the best quality and value to our customers
Principles and Values At DSGT, we will Æ 2TQXKFG C JGCNVJ[ UCHG CPF RQUKVKXG YQTM GPXKTQPOGPV YJGTG GXGT[QPG ECP HGGN XCNWGF ECP NGCTP CPF KU GZRGEVGF VQ EQPUKUVGPVN[ UVTKXG VQ CEJKGXG VJGKT RGTUQPCN DGUV YKVJ VJG TGUQWTEGU CXCKNCDNG Æ 'PEQWTCIG C JKIJ VTWUV QTICPK\CVKQP YJGTG GXGT[QPG CEMPQYNGFIGU VJG[ JCXG C UJCTGF TGURQPUKDKNKV[ HQT UWEEGUU QT HCKNWTG YKVJKP CNN FGRCTVOGPVU Æ /CPWHCEVWTG C EQPUKUVGPV JKIJ SWCNKV[ RTQFWEV CV VJG NQYGUV RQUUKDNG OCPWHCEVWTGF EQUV VJCV UCVKUHKGU VJG PGGFU QH VJG EQPUWOGT CPF VJG GZRGEVCVKQPU QH QWT VTCFG EWUVQOGTU Æ $WKNF QWT EWUVQOGT RCTVPGTUJKRU VJTQWIJ C à EQNNCDQTCVKXG CRRTQCEJÂ
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
15 Chairman’s Message DEAR VALUED SHAREHOLDERS AND STAKEHOLDERS I am pleased to report that DSG continued its track record of out-pacing industry growth in key markets in Financial Year 2012. Despite challenging external and competitive circumstances, both BabyLove and Pet Pet achieved record sales and market share in Thailand and Malaysia respectively, while Certainty continued to grow and maintained its market leadership position in the Thailand adult incontinence market despite new brand entries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¿U HQEWU KP TGEGPV [GCTU VQ DWKNF C UVTQPI HQWPFCVKQP KU TGHNGEVGF KP VJG RCUV [GCTU EQORQWPFGF CPPWCN ITQYVJ TCVG QH YJKEJ KU UKIPKHKECPVN[ JKIJGT VJCP KPFWUVT[ ITQYVJ CPF YJKEJ JCU NGF VQ UWEEGUUKXG OCTMGV UJCTG TGEQTFU NGXGNU 6JG DGFTQEM QH VJKU UWRGTKQT RGTHQTOCPEG KU DWKNV WRQP RTQFWEV OCTMGVKPI CPF UWRRN[ EJCKP KPPQXCVKQPU KP CFFKVKQP VQ RTQFWEVKXKV[ CPF SWCNKV[ KORTQXGOGPVU #U YG RTGRCTG VQ CFFTGUU VJG QRRQTVWPKVKGU KP VJG HWVWTG YG CNUQ KPXGUV KP QWT KPHTCUVTWEVWTG VQ KPETGCUG ECRCEKV[ VQ UWRRQTV ITQYVJ CPF VQ FTKXG GEQPQOKGU QH UECNG GHHKEKGPEKGU 1WT UGEQPF HCEKNKV[ KP 6JCKNCPF YCU EQORNGVGF CPF QRGTCVKQPCN KP #WIWUV YJKEJ IKXGU WU ECRCEKV[ VQ EQPVKPWG VQ GZRCPF YCTGJQWUKPI CPF OCPWHCEVWTKPI URCEG KP EQOKPI [GCTU 1WT HKTUV EWUVQO DWKNV HCEKNKV[ KP /CNC[UKC KU PGCTKPI EQORNGVKQP CPF KU GZRGEVGF VQ DG QRGTCVKQPCN D[ /CTEJ YJKEJ YKNN UWRRQTV VJG FTKXG HQT OCTMGV NGCFGTUJKR KP EQOKPI [GCTU 6JG %QORCP[ KU HQEWUGF CPF EQOOKVVGF VQ UWUVCKP QWT VTCEM TGEQTF QH FGNKXGTKPI UWRGTKQT RGTHQTOCPEG CPF VQ EQPVKPWG DWKNFKPI HQT VJG HWVWTG 1P DGJCNH QH VJG $QCTF QH &KTGEVQTU CPF OCPCIGOGPV VGCO + YQWNF NKMG VQ VJCPM QWT UJCTGJQNFGTU HQT VJG UVTQPI CPF EQPVKPWGF VTWUV CPF VQ VJCPM QWT EQPUWOGTU EWUVQOGTU CPF DWUKPGUU RCTVPGTU HQT VJGKT UVTQPI UWRRQTV
Brandon Shui Ling Wang Chairman of the Board of Directors
ANNUAL REPORT 2012
16 CEO’s Message DEAR VALUED SHAREHOLDERS AND STAKEHOLDERS, We are pleased to present the Annual Report and Audited Financial Statements of the Company and its subsidiaries for the financial year ended December 31, 2012.
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
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
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CEO’s Message
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
Ambrose Kam Shingg Chan Chh G CHAN Chief Executive Officer
ANNUAL REPORT 2012
18 Building for Growth
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
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
19
Building for Growth
6JKU EQODKPCVKQP QH UVTQPI GEQPQOKE CPF FGOQITCRJKE HWPFCOGPVCNU RTGUGPV HWVWTG QRRQTVWPKVKGU YJKEJ &5) OWUV RTGRCTG VQ TGCNK\G .GXGTCIKPI VJG UEQRG CPF UECNG QH QWT GPVGTRTKUG HWPEVKQPU PCOGN[ RTQEWTGOGPV OCPWHCEVWTKPI UWRRN[ EJCKP CPF EQOOGTEKCN QRGTCVKQPU KPVQ JKIJGT NGXGNU QH GHHKEKGPE[ CPF KPPQXCVKQP YKNN DG KORQTVCPV VQ EQORGVKPI KP VJG OCTMGV VQ OGGV VJG EJCNNGPIG CPF QRRQTVWPKVKGU QH KPETGCUKPIN[ UQRJKUVKECVGF EQPUWOGT CPF TGVCKNGT PGGFU #U C EQPUWOGT DWUKPGUU VJG %QORCP[¿U HQEWU KU VQ RTQFWEG SWCNKV[ RTQFWEVU VJCV EQPUWOGTU YCPV CV GHHKEKGPV RTKEGU CPF VQ DWKNF UVTQPIGT DTCPFU CPF CHHKPKV[ YKVJ EQPUWOGTU 9G UVTKXG VQ DG EQPUWOGT EGPVTKE KP QWT CRRTQCEJ CPF QWT FGNKXGT[ +V KU YKVJ VJKU KP OKPF VJCV YG KPXGUV KP KPHTCUVTWEVWTG CPF DTCPF DWKNFKPI KPKVKCVKXGU KP VQ Build for Growth.
ANNUAL REPORT 2012
20 Board of Directors
MR. BRANDON SHUI LING WANG Chairman of the Board of Directors
MR. AMBROSE KAM SHING CHAN Director
MR. YEOH AIK CHEONG Director
MR. FOO ENG CHUAN Director
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
21
Board of Directors
MR. SUKPORN CHATCHAVALAPONG Independent Director and Chairman of the Audit Committee
MS. JUSTINE MAN SAN WANG Director
MR. CHWAN-DER ALEX KING Independent Director and Member of the Audit Committee
DR. VISSNU POOMMIPANIT Independent Director and Member of the Audit Committee
ANNUAL REPORT 2012
22 Management Team
MR. AMBROSE KAM SHING CHAN Chief Executive Officer
MR. FOO ENG CHUAN Chief Operating Officer
MR. YEOH AIK CHEONG Chief Financial Officer
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
23
Management Team
MS. JUSTINE MAN SAN WANG Director of Strategic Business Development
MS. CHACHANEE ANANTWATANAPONG General Manager - Thailand
MR. SIMON WONG Plant Director
ANNUAL REPORT 2012
24
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
Purchasing Manager
Supply Chain Manager
Head of HR and Admin
General Manager
Head of Sales
Organization Chart
Head of Marketing
Finance Controller
IT Manager
Investor Relations Manager
Chief Financial Officer
Chief Operating Officer
Chief Executive Officer
Board of Directors
Plant Manager
Plant Director
R&D Manager
Product Management Development Manager
Director of Strategic Business Development
Audit Committee
Internal Audit Manager
26 Calendar of Events
1
2
3
1. DONATION TO PHYATHAI HOME CHILDREN 2. DONATION TO PAKKRED HOME CHILDREN CARE CARE 1P ,WN[ &5)6 FQPCVGF $CD[.QXG DCD[ FKCRGTU VQ 2CMMTGF *QOG %JKNFTGP %CTG VQ UWRRQTV VJG EJKNFTGP ECTG QRGTCVKQP
1P (GDTWCT[ &5)6 FQPCVGF $CD[.QXG DCD[ FKCRGTU VQ 2J[CVJCK *QOG %JKNFTGP %CTG VQ UWRRQTV VJG EJKNFTGP ECTG QRGTCVKQP
3. DSGT IN “RAKLUKE FESTIVAL 2012” 6JG %QORCP[ RCTVKEKRCVGF KP 4CMNWMG (GUVKXCN YJKEJ YCU JGNF HTQO VQ /CTEJ CV +/2#%6 'ZJKDKVKQP CPF %QPXGPVKQP %GPVGT /WCPI 6JQPI 6JCPK
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
27 Calendar of Events
4
6 5
7
4. HOSPITAL SEMINAR SPONSORSHIP : 6. BABY LOVE AND CERTAINTY TELEVISION BABYLOVE ADVERTISEMENT LAUNCH IN THAILAND 6JG %QORCP[ RCTVKEKRCVGF KP *QURKVCN 5GOKPCT #EVKXKVKGU HQT $CPIRCMQM +PVGTPCVKQPCN *QURKVCN $ %CTG /GFKECN %GPVGT 2J[CVJCK *QURKVCN 5GTKTWM *QURKVCN $WOTWPITCF *QURKVCN $CPIPC *QURKVCN 2CQNQ *QURKVCN CPF %JCQRJ[C *QURKVCN 6JG RTQITCO KU VQ RTQXKFG CYCTGPGUU QP JGCNVJ[ NKHGUV[NG HQT PGY OQVJGTU
+P ,WN[ VJG %QORCP[ NCWPEJGF C PGY $CD[.QXG VGNGXKUKQP CFXGTVKUGOGPV %GNGDTKV[ 2CWNC 6C[NQT CPF JGT FCWIJVGT .KNC YGTG VJG DTCPF CODCUUCFQTU HQT $CD[.QXG +P #WIWUV VJG %QORCP[ CNUQ NCWPEJGF C PGY %GTVCKPV[ VGNGXKUKQP CFXGTVKUGOGPV YKVJ VJG VJGOG QH ECTKPI HQT RCTGPVU $QVJ VGNGXKUKQP CFXGTVKUGOGPVU TGEGKXGF RQUKVKXG HGGFDCEM HTQO VJG EQPUWOGTU
5. HOSPITAL SEMINAR SPONSORSHIP : 7. GRAND OPENING CEREMONY OF NEW CERTAINTY FACILITY AT HEMARAJ SARABURI 6JG %QORCP[ CNUQ RCTVKEKRCVGF KP VJG &KCDGVGU 5GOKPCT INDUSTRIAL LAND, THAILAND YKVJ 2J[CVJCK *QURKVCN 1P 5GRVGODGT &5)6 JCF C )TCPF 1RGPKPI %GTGOQP[ HQT C PGY FKUVTKDWVKQP EGPVGT CPF RTQFWEVKQP HCEKNKV[ NQECVGF CV *GOCTCL 5CTCDWTK +PFWUVTKCN .CPF 6JG PGY HCEKNKV[ JCU CP CTGC QH CRRTQZKOCVGN[ US O CPF ECP DG GZRCPFGF WR VQ US O VQ UWRRQTV HWVWTG ITQYVJ 6JG PGY HCEKNKV[ YKNN GPCDNG VJG %QORCP[ VQ EGPVTCNK\G KVU YCTGJQWUG QRGTCVKQPU CPF QRGTCVG KP C OQTG GHHKEKGPV OCPPGT
ANNUAL REPORT 2012
28 Calendar of Events
10
8
9 11
8. PET PET 2012 EASYSTART PROGRAM GOES 10. PET PET EASYSTART PROGRAM 2012 INTO HOSPITALS NATIONWIDE IN MALAYSIA – NEW TV COMMERCIAL REACHES THE MALAYSIA HOUSEHOLDS 1P /C[ &5)/ /CTMGVKPI 6GCO XKUKVGF C MG[ )QXGTPOGPV *QURKVCN KP #ORCPI -WCNC .WORWT VQ UJCTG VJG PGY 2GV 2GV 'CU[5VCTV 2CEM YKVJ PGY OQVJGTU # VQVCN QH RCEMU QH PGY 2GV 2GV 'CU[5VCTV 2CEM YGTG FKUVTKDWVGF VQ XCTKQWU JQURKVCNU KP /CNC[UKC
9. PET PET MALAYSIA DAY CELEBRATION 1P 5GRVGODGT 2GV 2GV EGNGDTCVGF YKVJ CNN PGY OQVJGTU QP VJG CTTKXCN QH VJGKT PGYDQTPU QP VJKU CWURKEKQWU PCVKQPYKFG /CNC[UKC &C[ EGNGDTCVKQP # VQVCN QH GZENWUKXG /CNC[UKC &C[ 2GV 2GV RCEMU YGTG FKUVTKDWVGF PCVKQPYKFG 2GV 2GV¿U /CNC[UKC &C[ EGNGDTCVKQP CNUQ YGPV QPNKPG YKVJ 2GV 2GV (CEGDQQM EQPVGUV GPICIKPI PGY OQVJGTU YKVJ VJG 2GV 2GV 'CU[5VCTV 2TQITCO
+P /C[ C PGY 68 CFXGTVKUGOGPV YCU CKTGF VQ ETGCVG CYCTGPGUU QH VJG GZENWUKXG 2GV 2GV 'CU[5VCTV 2TQITCO YJKEJ RTQXKFGU IWKFCPEG CPF CUUKUVCPEG VQ RTGIPCPV CPF PGYN[ RQUV PCVCN OQVJGTU YKVJ DCDKGU OQPVJU QNF
11. BABYLOVE GOES ALL OUT TO “WOW” CONSUMERS AT EVENTS NATIONWIDE IN MALAYSIA
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
1P TF VJ /CTEJ $CD[.QXG RCTVKEKRCVGF KP VJG HKTUV /QO $CD[ 'ZRQ TGCEJKPI QWV VQ PGY OQVJGTU
29 Calendar of Events
12 13 14
12. BABYLOVE NIGHT SWAP PROGRAM +P SWCTVGT QH $CD[.QXG 0KIJV UVCTVGF VJG $CD[.QXG 0KIJV 5YCR 2TQITCO 6JG RTQITCO ETGCVGF DW\\ COQPIUV EQPUWOGTU CPF TGVCKNGTU
13. BABYLOVE NIGHT LAUNCHED A NEW ADVERTISEMENT CAMPAIGN IN MALAYSIA +P 5GRVGODGT $CD[.QXG 0KIJV NCWPEJGF C PGY VGNGXKUKQP EQOOGTEKCN XKFGQ VQ HWTVJGT UVTGPIVJGP VJG PKIJV RTQRQUKVKQP D[ HGCVWTKPI VJG FKCRGT FGOQ VGUV VQ ETGCVG ITGCVGT CYCTGPGUU QH $CD[.QXG 0KIJV CPF KVU DGPGHKVU
14. CONSTRUCTION OF NEW WAREHOUSE AND PRODUCTION FACILITIES AT TELOK PANGLIMA GARANG, MALAYSIA +P &5)/ UVCTVGF VJG EQPUVTWEVKQP QH C PGY RNCPV NQECVGF KP 6GNQM 2CPINKOC )CTCPI $CPVKPI /CNC[UKC 6JG RNCPV EQPUKUVU QH C UVQTG[ QHHKEG C YCTGJQWUG CPF OCPWHCEVWTKPI HCEKNKVKGU YKVJ CP CTGC QH CRRTQZKOCVGN[ US O 6JKU PGY HCEKNKV[ YKNN GPCDNG VJG %QORCP[ VQ EQPUQNKFCVG DQVJ KVU YCTGJQWUG CPF RTQFWEVKQP KP C UKPING NQECVKQP
ANNUAL REPORT 2012
30 Business Characteristics SUMMARY OF DSGT BUSINESS OPERATIONS &5) +PVGTPCVKQPCN 6JCKNCPF 2.% Á&5)6Â YCU GUVCDNKUJGF QP /C[ 6JG %QORCP[ KU KP VJG DWUKPGUU QH OCPWHCEVWTKPI CPF OCTMGVKPI QH FKURQUCDNG DCD[ CPF CFWNV FKCRGTU $CD[ FKURQUCDNG FKCRGTU CTG DTCPFGF WPFGT VJG DTCPF PCOG QH Á$CD[.QXGÂ Á2GV 2GVÂ CPF Á(KVVKÂ YJKNUV CFWNV FKURQUCDNG FKCRGTU CTG WPFGT VJG DTCPF PCOG QH Á%GTVCKPV[Â CPF Á%GTVCKPV[ #EVKXGÂ
Background and Significant Changes and Development of the Company can be summarized as follows:
2004
2006-2008
June 2006 2004 +PETGCUGF KV TGIKUVGTGF ECRKVCN HTQO $CJV OKNNKQP VQ $CJV +PETGCUGF KVU TGIKUVGTGF ECRKVCN HTQO $CJV OKNNKQP VQ $CJV OKNNKQP 2CKF WR ECRKVCN YCU KPETGCUGF VQ $CJV OKNNKQP OKNNKQP EQORTKUKPI QH OKNNKQP UJCTGU YKVJ RCT XCNWG QH 4GUVTWEVWTGF KVU JQNFKPI UVTWEVWTG VQ YJQNN[ QYP VJG UJCTGU $CJV RGT UJCTG QH &KURQUCDNG 5QHV )QQFU /CNC[UKC 5FP $JF Á&5)/. &5) /CNC[UKC 5FP $JF Á&5)/5$ &KURQUCDNG 5QHV )QQFU 5 2VG .KOKVGF Á&5)5 #FXCPEG /GFKECN 5WRRNKGT 9 August 2006 %Q .VF Á#/5 CPF VQ QYP QH UJCTGJQNFKPI KP .KUVGF KP VJG 5VQEM 'ZEJCPIG QH 6JCKNCPF 6JG %QORCP[ 26 &5) 5WT[C /CU +PFQPGUKC Á26&5) 6JG QDLGEVKXG KUUWGF OKNNKQP PGY QTFKPCT[ UJCTGU KP VJG +PKVKCN 2WDNKE QH VJG TGUVTWEVWTKPI YCU VQ GPUWTG VJCV VJG FKUVTKDWVKQP QH VJG 1HHGTKPI TGUWNVKPI KP C RCKF WR ECRKVCN QH $CJV OKNNKQP %QORCP[¿U CPF KVU UWDUKFKCTKGU¿ RTQFWEVU EQXGT VJG 5QWVJ 'CUV #UKC OCTMGV CPF VQ RTGXGPV CP[ RQVGPVKCN EQPHNKEV QH KPVGTGUV 21 November 2008 COQPI VJG UWDUKFKCTKGU )TCPVGF VJG 5'6 #YCTF KP VJG ECVGIQT[ QH $GUV %QPXGTVGF HTQO C RTKXCVG EQORCP[ VQ DG C RWDNKE EQORCP[ 2GTHQTOCPEG YKVJ OCTMGV ECRKVCNK\CVKQP QH NGUU VJCP $CJV 4GNQECVGF KVU RTQFWEVKQP RNCPV HTQO $CPIRQQ +PFWUVTKCN 'UVCVG DKNNKQP VQ *GOCTCL 5CTCDWTK +PFWUVTKCN <QPG KP 5CTCDWTK 2TQXKPEG 6JG %QORCP[ JCU DGGP ITCPVGF XCTKQWU KPXGUVOGPV RTQOQVKQPCN KPEGPVKXGU D[ VJG $QCTF QH +PXGUVOGPV $1+ HQT KVU RTQFWEVKQP HTQO VJKU NQECVKQP
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
31
Business Characteristics
2010-2011
2012
19 November 2010 20 September 2012 0QOKPCVGF HQT VJG 5'6 #YCTF KP VJG ECVGIQT[ QH $GUV 6JG /GGVKPI QH 5JCTGJQNFGTU CRRTQXGF VJG %QORCP[¿U ECRKVCN 2GTHQTOCPEG YKVJ OCTMGV ECRKVCNK\CVKQP QH NGUU VJCP $CJV KPETGCUG HTQO $CJV OKNNKQP VQ $CJV OKNNKQP D[ KUUWKPI DKNNKQP CPF $GUV %'1 OKNNKQP PGY QTFKPCT[ UJCTGU CV C RCT XCNWG QH $CJV RGT UJCTG VQ CEEQOOQFCVG VJG 5VQEM &KXKFGPF CV VJG TCVKQ QH December 2010 GZKUVKPI UJCTGU HQT PGY UJCTG 6QVCN CNNQVVGF UJCTGU YGTG UJCTGU 6JG %QORCP[ TGIKUVGTGF VJG EJCPIG 4GUVTWEVWTGF VJG UJCTGJQNFKPI KP 26&5) HTQO UJCTGJQNFKPI QH RCKF WR ECRKVCN VQ $CJV OKNNKQP QP 1EVQDGT VQ UJCTGJQNFKPI VQ HCEKNKVCVG HWVWTG GZRCPUKQP RNCPU 6JG PGY UJCTGU YGTG VTCFGF KP VJG 5'6 QP 1EVQDGT KP +PFQPGUKC 29 April 2011 6JG /GGVKPI QH 5JCTGJQNFGTU CRRTQXGF VJG %QORCP[¿U ECRKVCN KPETGCUG HTQO $CJV OKNNKQP VQ $CJV OKNNKQP D[ KUUWKPI OKNNKQP PGY QTFKPCT[ UJCTGU CV C RCT XCNWG QH $CJV RGT UJCTG VQ CEEQOOQFCVG VJG 5VQEM &KXKFGPF CV VJG TCVKQ QH GZKUVKPI UJCTG HQT PGY UJCTG 6JG %QORCP[ TGIKUVGTGF VJG EJCPIG QH RCKF WR ECRKVCN VQ $CJV OKNNKQP QP /C[ 6JG PGY UJCTGU YGTG VTCFGF KP VJG 5'6 QP /C[
ANNUAL REPORT 2012
32
Business Characteristics
AN OVERVIEW OF THE BUSINESS OPERATION OF THE COMPANY Corporate Structure of the Company and its Subsidiaries 31 December 2012
DSGIL
65.74%
DSGT 100%
100%
100%
100%
DSGML
DSGMSB
PTDSG
DSGS
DSG International (Thailand) Public Company &5) +PVGTPCVKQPCN .KOKVGF Á&5)+. YCU TGIKUVGTGF KP VJG $TKVKUJ Limited (“DSGT”) DSG International Limited (“DSGIL”)
8KTIKP +UNCPFU QP &GEGODGT &5)+.¿U RTKPEKRCN QHHKEG KU &5) +PVGTPCVKQPCN 6JCKNCPF 2%. YCU KPEQTRQTCVGF QP /C[ DCUGF KP *QPI -QPI YKVJ VJG QDLGEVKXG QH OCPWHCEVWTKPI CPF OCTMGVKPI QH DCD[ CPF CFWNV FKURQUCDNG FKCRGTU +V DTCPF PCOGU KPENWFG Á$CD[.QXGÂ &5)+. JCU UWDUKFKCT[ EQORCPKGU VJCV CTG KP VJG DWUKPGUU QH Á2GV 2GVÂ Á%GTVCKPV[Â CPF Á%GTVCKPV[ #EVKXGÂ HQT DQVJ GZRQTV CPF OCPWHCEVWTKPI CPF OCTMGVKPI QH DCD[ CPF CFWNV FKURQUCDNG FKCRGTU FQOGUVKE OCTMGVU WPFGT VJG DTCPF PCOGU QH Á$CD[.QXGÂ Á2GV 2GVÂ Á(KVVKÂ Á&KURQ Â Á*CPF[Â CPF Á%GTVCKPV[Â KP 7PKVGF 5VCVGU QH #OGTKEC &5)6 JQNFU QH UJCTG KP &5)/. &5)/5$ &5)5 CPF *QPI -QPI %JKPC 6JCKNCPF /CNC[UKC +PFQPGUKC CPF 5KPICRQTG 26&5) &5)+. JQNFU QH VJG VQVCN UWDUETKDGF UJCTGU QH VJG %QORCP[
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
33
Business Characteristics
SUBSIDIARIES 1. Disposable Soft Goods (Malaysia) SDN BHD (“DSGML”) &5)/. YCU HQWPFGF QP 1EVQDGT YKVJ CWVJQTKUGF UJCTG ECRKVCN QH 4KPIIKV FKXKFGF KPVQ UJCTGU CV RCT XCNWG QH 4KPIIKV RGT UJCTG YKVJ VJG RCKF WR UJCTG ECRKVCN QH 4KPIIKV 1P 0QXGODGT VJG %QORCP[ KPETGCUGF KVU CWVJQTKUGF UJCTG ECRKVCN VQ 4KPIIKV OKNNKQP FKXKFGF KPVQ OKNNKQP UJCTGU CV RCT XCNWG QH 4KPIIKV RGT UJCTG YKVJ RCKF WR UJCTG ECRKVCN QH 4KPIIKV &5)/. QRGTCVGU VJG DWUKPGUU QH FKUVTKDWVKPI CPF OCTMGVKPI QH FKURQUCDNG DCD[ CPF CFWNV FKURQUCDNG FKCRGTU KP /CNC[UKC
2. DSG (Malaysia) SDN BHD (“DSGMSB”)
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
&5)/5$ YCU HQWPFGF QP &GEGODGT YKVJ CWVJQTKUGF 4. Disposable Soft Goods (S) Pte Limited (“DSGS”) UJCTG ECRKVCN QH 4KPIIKV OKNNKQP FKXKFGF KPVQ OKNNKQP UJCTGU &5)5 YCU HQWPFGF QP #WIWUV YKVJ CWVJQTKUGF UJCTG CV RCT XCNWG QH 4KPIIKV YKVJ RCKF WR UJCTG ECRKVCN QH 4KPIIKV ECRKVCN QH 5)& OKNNKQP YJKEJ KU FKXKFGF KPVQ OKNNKQP UJCTGU 1P #RTKN VJG %QORCP[ KPETGCUGF KVU RCKF WR UJCTG CV RCT XCNWG QH 5)& CPF RCKF WR UJCTG ECRKVCN QH 5)& ECRKVCN VQ 4KPIIKV 5WDUGSWGPVN[ QP 0QXGODGT OKNNKQP YKVJ VJG QDLGEVKXG QH FKUVTKDWVKPI CPF OCTMGVKPI VJG %QORCP[ KPETGCUGF KVU CWVJQTKUGF UJCTG ECRKVCN QH DCD[ CPF CFWNV FKURQUCDNG FKCRGTU KP 5KPICRQTG VQ 4KPIIKV OKNNKQP YKVJ RCKF WR UJCTG ECRKVCN QH 4KPIIKV &5)/5$ QRGTCVGU VJG DWUKPGUU QH OCPWHCEVWTKPI 1P #RTKN &5)5 EJCPIGF KVU DWUKPGUU OQFGN VQ C DCD[ FKURQUCDNG FKCRGTU &5)/5$¿U RNCPV KU NQECVGF CV 5WPICK FKUVTKDWVQT QRGTCVKQP D[ CRRQKPVKPI C UQNG FKUVTKDWVQT HQT CNN KVU 2GPCIC +PFWUVTKCN 2CTM /CNC[UKC RTQFWEVU
3. PT DSG Surya Mas Indonesia (“PTDSG”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
ANNUAL REPORT 2012
34
Revenue Structure 2008 1 MM THB
2009 1 %
MM THB
2010 1 %
MM THB
2011 1 %
MM THB
2012 1 %
MM THB
%
Domestic sales 2 : Baby diapers
1,983.22
4GNCVGF 2CTVKGU
1VJGTU
68.31% 2,507.84
72.97% 3,358.03
76.89% 4,646.29
80.93% 5,394.82
80.41%
718.38
24.74%
779.43
22.68%
805.17
18.44%
910.19
15.85% 1,125.61
16.78%
49.27
1.70%
51.13
1.49%
56.34
1.29%
97.92
1.71%
49.17
0.73%
1VJGTU
Adult diapers
70.04
2.41%
19.39
0.56%
60.53
1.39%
10.62
0.18%
40.02
0.60%
4GNCVGF 2CTVKGU
82.34
2.84%
79.03
2.30%
87.09
1.99%
76.46
1.33%
99.11
1.48%
Adult diapers 4GNCVGF 2CTVKGU
1VJGTU
Export sales: Baby diapers 4GNCVGF 2CTVKGU
1VJGTU Other sales:
5
Total income
2,903.25 100.00% 3,436.82 100.00% 4,367.16 100.00% 5,741.48 100.00% 6,708.73 100.00%
Remarks: 7PKV $CJV 'ZEJCPIG TCVG 2008 2009 2010 2011 2012 /CNC[UKCP 4KPIIKV +PFQPGUKCP 4WRKCJ 5KPICRQTG &QNNCT
&QOGUVKE 5CNGU OGCPU 5CNGU KP 6JCKNCPF /CNC[UKC +PFQPGUKC CPF 5KPICRQTG 4GNCVGF 2CTVKGU OGCPU 26 2CPEC 6CNGPVC/CU 4GNCVGF 2CTVKGU OGCPU &5). &5)< CPF &5)+. 1VJGT UCNGU KPENWFG UCNGU HTQO PQP FKCRGT RTQFWEVU K G CDUQTDGPV UJGGV CPF %QQN 4GHTGUJ 6QYGNU
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
35 Risk Factors 6JG TKUM HCEVQTU OGPVKQPGF KP VJKU ENCWUG CTG TKUMU QH OCVGTKCN UKIPKHKECPEG VJCV OC[ JCXG C PGICVKXG KORCEV QP VJG %QORCP[ CPF VJG %QORCP[¿U UJCTGU RTKEG *QYGXGT VJKU FQGU PQV KPENWFG QVJGT TKUM HCEVQTU VJCV CTG PQV MPQYP VQ VJG %QORCP[ CV VJG RTGUGPV VKOG QT YJKEJ VJG %QORCP[ FGGOU VQ DG TKUMU QH PQ OCVGTKCN UKIPKHKECPEG CV VJG RTGUGPV VKOG #P[ HQTYCTF NQQMKPI UVCVGOGPVU HTQO VJG %QORCP[ CTG CNUQ UWDLGEV VQ EGTVCKP TKUMU CPF WPEGTVCKPV[ %CWVKQP UJQWNF DG VCMGP PQV VQ RNCEG WPFWG TGNKCPEG QP CP[ UWEJ HQTYCTF NQQMKPI UVCVGOGPVU
RISK FROM THE FLUCTUATION OF RAW MATERIALS PRICES +ORQTVCPV TCY OCVGTKCNU WUGF KP VJG OCPWHCEVWTG QH FKURQUCDNG DCD[ CPF CFWNV FKCRGTU CTG YQQF RWNR PQP YQXGP UJGGVU INWGU CPF 5WRGT #DUQTDGPV 2QN[OGT Á5#2Â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
RISK FROM BEING DEPENDENT ON DSGIL, THE MAJOR SHAREHOLDER OF THE COMPANY 6JG %QORCP[ KU C UWDUKFKCT[ QH &5) +PVGTPCVKQPCN .KOKVGF Á&5)+. YJKEJ JCU XCTKQWU CHHKNKCVGU KP VJG DWUKPGUU QH OCPWHCEVWTKPI CPF FKUVTKDWVKQP QH DCD[ CPF CFWNV FKURQUCDNG FKCRGTU 6JG %QORCP[ CPF KVU UWDUKFKCTKGU CTG FGRGPFGPV QP &5)+. KP VJG HQNNQYKPI OCLQT RTKOCT[ CTGCU 1. Procurement of Raw Materials : &5)+. JCU GPVGTGF KPVQ UWRRNKGT RWTEJCUKPI CTTCPIGOGPVU YKVJ UGXGTCN UWRRNKGTU FKUVTKDWVQTU 6JG UCKF RTQEWTGOGPV QH VJG TCY OCVGTKCNU WPFGT VJQUG CTTCPIGOGPVU CNUQ KPENWFG VJG %QORCP[¿U CPF KVU UWDUKFKCTKGU¿ RWTEJCUG QH TCY OCVGTKCNU 6JG EQPUQNKFCVKQP QH TCY OCVGTKCN FGOCPF QH &5)+. CPF KVU CHHKNKCVGU RTQXKFGU DCTICKPKPI RQYGT YKVJ VJG UWRRNKGTU *QYGXGT VJG RTKEG QH TCY OCVGTKCNU KP GCEJ TGIKQP OKIJV DG FKHHGTGPV FWG VQ VJG FGOCPF CPF HTGKIJV EQUV KP GCEJ TGURGEVKXG TGIKQP
2. Research and Development : 6JG TGUGCTEJ CPF FGXGNQROGPV QH VJG %QORCP[ CPF QH KVU UWDUKFKCTKGU KU EQPFWEVGF
D[ &5)+. YJKEJ KPPQXCVGU CPF FGXGNQRU PGY OCVGTKCNU CPF VGEJPQNQIKGU HQT PGY RTQFWEVU CPF RTQFWEV KORTQXGOGPVU 6JG %QORCP[ CPF KVU UWDUKFKCTKGU JCXG VJG QRVKQP VQ EJQQUG VQ WUG QT PQV VQ WUG CPF VQ CRRN[ QT PQV VQ CRRN[ VJG PGY OCVGTKCNU CPF VGEJPQNQIKGU /CLQT RTQFWEV SWCNKV[ KORTQXGOGPVU CPF PGY RTQFWEV KPVTQFWEVKQPU CTG VJGTGHQTG FGRGPFGPV QP VJG 4GUGCTEJ CPF &GXGNQROGPV QH &5)+.
3. Operation/Management Assistance : &5)+. RTQXKFGU OCPCIGOGPV UGTXKEGU VQ VJG %QORCP[ CPF KVU UWDUKFKCTKGU
6JG %QORCP[ CPF KVU UWDUKFKCTKGU RC[ OCPCIGOGPV HGGU VQ &5)+. WPFGT VJG /CPCIGOGPV #ITGGOGPV DCUGF QP VJG NGXGN QH UGTXKEGU RTQXKFGF D[ &5)+. 6JG UCKF CITGGOGPV YKNN DG CWVQOCVKECNN[ TGPGYCDNG WPNGUU GKVJGT RCTV[ FGEKFGU VQ VGTOKPCVG VJG #ITGGOGPV D[ YC[ QH IKXKPI C YTKVVGP PQVKEG VQ VJG QVJGT RCTV[ CV NGCUV OQPVJU DGHQTG VJG GZRKTCVKQP QH VJG #ITGGOGPV
4. Trademark License : 6JG %QORCP[ CPF KVU UWDUKFKCTKGU KP 6JCKNCPF CPF /CNC[UKC RC[ VJG TQ[CNV[ HGG HQT VJG WUG QH VJG UCKF
VTCFGOCTM CV YJKNG 26&5) RC[ VJG EQPVTCEV QH YJKEJ KU TGPGYCDNG CWVQOCVKECNN[ GXGT[ [GCT HQT C HWTVJGT QPG [GCT VGTO 6JG %QORCP[ DGNKGXGU VJCV &5)+. KP VJG ECRCEKV[ CU C OCLQT UJCTGJQNFGT KU EQOOKVVGF VQ EQPVKPWG RTQXKFKPI UWRRQTV HQT VJG QRGTCVKQPU HQT VJG %QORCP[ CPF KVU UWDUKFKCTKGU
ANNUAL REPORT 2012
36
Risk Factors
RISK FROM RELATED COMPANIES WHICH ARE AFFILIATES OF DSGIL OPERATING IN THE SAME BUSINESS &5)+. VJG RCTGPV EQORCP[ QYPU QVJGT CHHKNKCVGF EQORCPKGU QVJGT VJCP VJG %QORCP[ CPF KVU UWDUKFKCTKGU 6JQUG CHHKNKCVGU CTG CNUQ KP VJG UCOG DWUKPGUU QH OCPWHCEVWTKPI CPF OCTMGVKPI QH DCD[ CPF CFWNV FKURQUCDNG FKCRGTU CU VJCV QH VJG %QORCP[ CPF KVU UWDUKFKCTKGU +P VJCV UGPUG GCEJ QH VJG CHHKNKCVGU QH &5)+. KU C RQVGPVKCN EQORGVKVQT QH VJG %QORCP[ CPF KVU UWDUKFKCTKGU CPF VJG %QORCP[ CPF KVU UWDUKFKCTKGU CTG RQVGPVKCN EQORGVKVQTU VQ GCEJ QH VJGUG CHHKNKCVGF EQORCPKGU QH &5)+. 5WEJ CHHKNKCVGU CTG YJQNN[ QYPGF D[ &5)+. CPF CTG NQECVGF KP VJG 7PKVGF 5VCVGU QH #OGTKEC *QPI -QPI CPF VJG 2GQRNG¿U 4GRWDNKE QH %JKPC /QTGQXGT UQOG QH VJG FKTGEVQTU OCPCIGOGPV QH VJG %QORCP[ CPF KVU UWDUKFKCTKGU CTG VJG FKTGEVQTU OCPCIGOGPV QH TGNCVGF EQORCPKGU &5)+. CPF KVU CHHKNKCVGU JCXG EQXGPCPVGF PQV VQ EQORGVG CICKPUV PQT VQ CNNQY RGTOKV QT NKEGPUG VJG 6TCFGOCTM VQ CP[ VJKTF RGTUQP VQ EQORGVG CICKPUV VJG %QORCP[ CPF KVU UWDUKFKCTKGU KP RTQFWEVKQP UCNGU CPF QT FKUVTKDWVKQP QH VJG FKURQUCDNG FKCRGTU QT CP[ TGNCVGF RTQFWEV OCPWHCEVWTGF YKVJ VJG 6TCFGOCTMU KP VJG .KEGPUGF 6GTTKVQT[ PCOGN[ 6JCKNCPF /CNC[UKC +PFQPGUKC CPF 5KPICRQTG WPNGUU VJG UCNGU CPF FKUVTKDWVKQP CTG OCFG D[ OGCPU QH KPVGT EQORCP[ UCNGU VJTQWIJ VJG %QORCP[ CPF KVU UWDUKFKCTKGU WPVKN VJG VGTOKPCVKQP QH 6TCFGOCTM .KEGPUG #ITGGOGPV YJKEJ KU CWVQOCVKECNN[ TGPGYCDNG HQT C RGTKQF QH QPG [GCT RISK FROM MARKET COMPETITION 6JG OCTMGV HQT FKURQUCDNG FKCRGTU JCU GZRGTKGPEGF EQPVKPWCN ITQYVJ TGUWNVKPI KP UVTQPI EQORGVKVKQP KP VGTOU QH RTKEG SWCNKV[ CPF OCTMGVKPI KPXGUVOGPVU 6JG OCKP EQORGVKVQTU QH VJG %QORCP[ CPF KVU UWDUKFKCTKGU CTG 7PKEJCTO VJG OCPWHCEVWTGT QH DCD[ FKCRGTU WPFGT VJG DTCPF PCOG QH /CO[ 2QMQ CPF VJG OCPWHCEVWTGT QH CFWNV FKCRGTU WPFGT VJG DTCPF PCOG QH .K(TGG 5%# VJG OCPWHCEVWTGT QH DCD[ FKCRGTU WPFGT VJG DTCPF PCOG QH &T[RGTU KP #UKC CPF VJG OCPWHCEVWTGT QH CFWNV FKCRGTU WPFGT VJG DTCPF PCOG QH 6GPC -KODGTN[ %NCTM VJG OCPWHCEVWTGT QH DCD[ FKCRGTU WPFGT VJG DTCPF PCOG QH *WIIKGU 2TQEVGT )CODNG VJG OCPWHCEVWTGT QH DCD[ FKCRGTU WPFGT VJG DTCPF PCOG QH 2CORGTU #NN QH VJGO CTG EQORCPKGU QH UKIPKHKECPV UK\G CPF TGUQWTEGU YKVJ UKIPKHKECPV KPHNWGPEG QP RTKEKPI EQPUWOGT CPF VTCFG RTQOQVKQPCN CEVKXKVKGU CPF UCNGU CU YGNN CU VGEJPQNQI[ KPPQXCVKQP 6JG %QORCP[ CPF KVU UWDUKFKCTKGU YKVJ VJGKT OCPCIGOGPV SWCNKV[ UVCPFCTF EGTVKHKECVKQP +51 JCXG C RTQEGUU QH RTQFWEVKQP EQPVTQN VQ GPUWTG VJG RTQFWEVU OGGV GUVCDNKUJGF SWCNKV[ CPF UVCPFCTFU CPF TGEGKXG CEEGRVCPEG HTQO VJG EQPUWOGTU /QTGQXGT &5)+. CU VJG RCTGPV EQORCP[ EQPVKPWQWUN[ OCMGU GHHQTVU VQ UVWF[ CPF UGCTEJ HQT DGVVGT TCY OCVGTKCNU VQ GPUWTG VJCV VJG RTQFWEVU CTG EQORGVKVKXG
RISK FROM FLUCTUATION OF EXCHANGE RATE #U OQUV QH VJG %QORCP[¿U CPF KVU UWDUKFKCTKGU¿ TCY OCVGTKCNU CTG KORQTVGF VJG %QORCP[ CPF KVU UWDUKFKCTKGU OC[ DG KORCEVGF D[ GZEJCPIG TCVG HNWEVWCVKQPU YJKEJ YKNN FKTGEVN[ KORCEV TCY OCVGTKCNU EQUVU CPF VJG ITQUU RTQHKV /QUV QH VJG KORQTVU CU YGNN CU GZRQTVU QH VJG %QORCP[ CPF KVU UWDUKFKCTKGU CTG KP 75 FQNNCT FGPQOKPCVKQP
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
37
Risk Factors
$GUKFGU VJG KORCEV QP TCY OCVGTKCN EQUVU VJG HNWEVWCVKQP QH GZEJCPIG TCVGU CNUQ JCU CP KORCEV QP VJG RTGUGPVCVKQP QH VJG %QORCP[¿U HKPCPEKCN UVCVGOGPVU CU VJG %QORCP[ OWUV TGEQTF CPF TGRQTV KVU KPXGUVOGPVU KP XCTKQWU UWDUKFKCTKGU KP KVU (KPCPEKCN 5VCVGOGPVU KP 6JCK $CJV #U CV &GEGODGT VJG %QORCP[ CPF KVU UWDUKFKCTKGU FKF PQV JCXG CP[ NQPI VGTO NQCPU FGPQOKPCVGF KP 75 EWTTGPE[ 6JG %QORCP[ CPF KVU UWDUKFKCTKGU OKVKICVGF HQTGKIP GZEJCPIG GZRQUWTG TKUMU D[ GPVGTKPI KPVQ HQTYCTF GZEJCPIG EQPVTCEVU
RISK FROM POLITICAL OR ECONOMIC SITUATIONS AND OTHER FACTORS FROM COUNTRIES IN SOUTHEAST ASIA 6JG %QORCP[ JCU UWDUKFKCTKGU VJCV RTQFWEG CPF OCTMGV FKURQUCDNG DCD[ CPF CFWNV FKCRGTU KP /CNC[UKC +PFQPGUKC CPF 5KPICRQTG 6JGTGHQTG CP[ EJCPIGU KP VJG GEQPQOKE RQNKVKECN CPF VTCFG RQNKEKGU UWEJ CU VCTKHH TCVGU CPF VTCFG TGUVTKEVKQPU QH CP[ QH VJGUG EQWPVTKGU OC[ JCXG CP KORCEV QP VJG QRGTCVKQP QH VJG %QORCP[ CPF KVU UWDUKFKCTKGU
RISK FROM NATURAL DISASTERS 6JCKNCPF GPEQWPVGTGF KVU YQTUV HNQQF ETKUKU KP [GCTU KP FWG VQ JGCX[ CPF YKFGURTGCF TCKPHCNN KP OCLQT CTGCU QH VJG EQWPVT[ FWTKPI VJG TCKP[ UGCUQP KPHNWGPEGF D[ OQPUQQP UVQTOU 6JG YQTUV HNQQFU YGTG KP 1EVQDGT CPF 0QXGODGT ECWUKPI UWDUVCPVKCN JCTFUJKR VQ 6JCKNCPF¿U RGQRNG CPF GEQPQO[ #U VJG %QORCP[¿U OCKP HCEKNKVKGU CTG NQECVGF KP 6JCKNCPF VJGTG KU VJG RQUUKDKNKV[ VJCV TGEWTTGPEG QH UWEJ CEVU QH PCVWTG OC[ CICKP TGUWNV KP DWUKPGUU FKUTWRVKQP 6JG %QORCP[ JCU GORNQ[GF XCTKQWU OGCUWTGU VQ RTQVGEV KVU HCEKNKVKGU CU YGNN CU C EQPVKPIGPE[ TGEQXGT[ RNCP KP RNCEG KP CPVKEKRCVKQP QH HWVWTG HNQQFKPI
ANNUAL REPORT 2012
38 Shareholders Structure DSGT - MAJOR SHAREHOLDERS AS OF 31 DECEMBER 2012 Name of shareholder
No. of shares held
Shareholding (%)
1. Group of DSG International Limited
591,621,000
65.74
&5) +PVGTPCVKQPCN .KOKVGF
2. Somers (U.K.) Limited
58,670,850
6.52
3. Anuwongnukroh Family
36,825,700
4.09
/TU 5WYCPPC #PWYQPIPWMTQJ
/T 2CKTCV #PWYQPIPWMTQJ
/T 0KYCV #PWYQPIPWMTQJ
/T 2TCRJCP #PWYQPIPWMTQJ
4. Thai NVDR Co., Ltd.
23,599,557
2.62
5. Bank Julius Baer And Co., Ltd.
11,490,000
1.28
6. Ayudhya Aliance Life Insurance
6,771,750
0.75
7. CitiGroup Global Markets Limited -IPB Customer Collateral Account
6,046,250
0.67
8. RBC DEXIA Investor Services Trust
5,729,100
0.64
9. Ms. Siriluck Thanomkulrat
4,530,000
0.50
10. Mr. Surayuth Piriyawong
4,507,500
0.50
150,208,284
16.69
899,999,991
100.00
$1%+ 5GEWTKVKGU .KOKVGF
/TU 7TCKOCPGG #PWYQPIPWMTQJ
Other shareholders Total Remark 6QVCN PWODGT QH UJCTGJQNFGTU KU
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
39 Management Structure 1. DSGT BOARD OF DIRECTORS #U CV &GEGODGT VJG %QORCP[¿U $QCTF QH &KTGEVQTU EQORTKUGF QH &KTGEVQTU CU HQNNQYU List of names
Positions
/T $TCPFQP 5JWK .KPI 9CPI
%JCKTOCP QH VJG $QCTF
/T #ODTQUG -CO 5JKPI %JCP
&KTGEVQT CPF %JKGH 'ZGEWVKXG 1HHKEGT
/T (QQ 'PI %JWCP
&KTGEVQT CPF %JKGH 1RGTCVKPI 1HHKEGT
/T ;GQJ #KM %JGQPI
&KTGEVQT CPF %JKGH (KPCPEKCN 1HHKEGT
/U ,WUVKPG /CP 5CP 9CPI
&KTGEVQT CPF &KTGEVQT QH 5VTCVGIKE $WUKPGUU &GXGNQROGPV
/T 5WMRQTP %JCVEJCXCNCRQPI
+PFGRGPFGPV &KTGEVQT CPF %JCKTOCP QH VJG #WFKV %QOOKVVGG
&T 8KUUPW 2QQOOKRCPKV
+PFGRGPFGPV &KTGEVQT CPF /GODGT QH VJG #WFKV %QOOKVVGG
/T %JYCP &GT #NGZ -KPI
+PFGRGPFGPV &KTGEVQT CPF /GODGT QH VJG #WFKV %QOOKVVGG
* Remark : Mr. Chwan-Der Alex King was appointed as Independent Director and Member of the Audit Committee in Board of Directorsâ&#x20AC;&#x2122; Meeting No. 1/2012 held on 17 February 2012 6JG %QORCP[ UGETGVCT[ KU /U /CPGGRQTP -QTMKVVKUWPVJQTP
Scope of the Duties and Powers of the Companyâ&#x20AC;&#x2122;s Board of Directors 6JG %QORCP[¿U $QCTF QH &KTGEVQTU OC[ CRRQKPV CPQVJGT RGTUQP VQ TWP VJG QRGTCVKQP QH VJG %QORCP[ WPFGT VJG UWRGTXKUKQP QH VJG $QCTF QH &KTGEVQTU QT ITCPV VJG UCKF RGTUQP VJG RQYGT YKVJKP VJG VKOG HTCOG CU VJG $QCTF QH &KTGEVQTU UJCNN UGG HKV 6JG %QORCP[¿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¿U $QCTF QH &KTGEVQTU UJCNN JCXG RQYGT VQ FGVGTOKPG TGXKUG CPF EJCPIG VJG PCOG QH VJG %QORCP[¿U CWVJQTK\GF FKTGEVQTU YJQ JCXG VJG RQYGT VQ UKIP DKPFKPI QP VJG %QORCP[ 6JG %QORCP[¿U $QCTF QH &KTGEVQTU OC[ RC[ CP +PVGTKO &KXKFGPF VQ VJG UJCTGJQNFGTU HTQO VKOG VQ VKOG YJGP KV FGGOU VJCV VJG %QORCP[ JCU JCF TGCUQPCDNG QRGTCVKPI RTQHKV VQ FQ UQ CPF VQ TGRQTV VQ VJG PGZV OGGVKPI QH VJG UJCTGJQNFGTU HQT CEMPQYNGFIGOGPV
ANNUAL REPORT 2012
40
Management Structure
6JG %QORCP[¿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¿U $QCTF QH &KTGEVQTU OWUV ECNN C OGGVKPI CV NGCUV QPEG GXGT[ VJTGG OQPVJU CV YJKEJ PQV NGUU VJCP JCNH QH VQVCN FKTGEVQTU CVVGPF # TGUQNWVKQP QH VJG OGGVKPI QH VJG $QCTF QH &KTGEVQTU OWUV JCXG C OCLQTKV[ XQVG 1PG FKTGEVQT UJCNN DG GPVKVNGF VQ QPG XQVG WPNGUU VJG FKTGEVQT JCU CP KPVGTGUV KP CP[ RCTVKEWNCT OCVVGT KP YJKEJ ECUG JG QT UJG UJCNN PQV DG GPVKVNGF VQ XQVG QP UCKF OCVVGT CPF KH VJG XQVG KU GSWCN VJG %JCKTOCP QH VJG OGGVKPI UJCNN JCXG C ECUVKPI XQVG 6JG %QORCP[¿U $QCTF QH &KTGEVQTU OWUV CTTCPIG HQT VJG 1TFKPCT[ /GGVKPI QH VJG 5JCTGJQNFGTU VQ DG JGNF YKVJKP OQPVJU QH VJG GPF QH VJG %QORCP[¿U CEEQWPVKPI RGTKQF # FKTGEVQT OWUV KPHQTO VJG %QORCP[ HQT KPHQTOCVKQP YKVJQWV FGNC[ QH KP ECUG JG QT UJG JCU JCF CP KPVGTGUV YJGVJGT FKTGEV QT KPFKTGEV KP CP[ EQPVTCEV GPVGTGF KPVQ D[ VJG %QORCP[ QT KP VJG ECUG QH UJCTGU QT FGDGPVWTGU QH VJG %QORCP[ QT KVU UWDUKFKCTKGU JGNF D[ VJG FKTGEVQT JCXKPI KPETGCUGF QT FGETGCUGF # FKTGEVQT OWUV PQV GPICIG KP C DWUKPGUU QH UKOKNCT EQPFKVKQPU VQ QT KP EQORGVKVKQP YKVJ VJG %QORCP[¿U DWUKPGUU QT GPVGT KPVQ DGKPI CP QTFKPCT[ RCTVPGT QT CP WPNKOKVGF RCTVPGT KP C NKOKVGF RCTVPGTUJKR QT DG C FKTGEVQT QH C NKOKVGF EQORCP[ QT CPQVJGT RWDNKE EQORCP[ YJKEJ QRGTCVGU C DWUKPGUU QH UKOKNCT EQPFKVKQP VQ CPF KP EQORGVKVKQP YKVJ VJG %QORCP[¿U DWUKPGUU KTTGURGEVKXG QH YJGVJGT QT PQV HQT VJG FKTGEVQT¿U QYP KPVGTGUV QT QVJGT RGTUQPU¿ KPVGTGUV WPNGUU C PQVKEG VJGTGQH JCU DGGP IKXGP VQ VJG OGGVKPI QH VJG UJCTGJQNFGTU HQT CEMPQYNGFIGOGPV DGHQTG CFQRVKPI C TGUQNWVKQP CRRQKPVKPI UWEJ FKTGEVQT # FKTGEVQT UJCNN JCXG VJG RQYGT VQ EQPUKFGT CRRTQXKPI VJG DQTTQYKPI QH OQPG[ VJG QDVCKPKPI QH ETGFKV NKPG QH FGDV TGUVTWEVWTKPI QT QH KUUWCPEG FGDV KPUVTWOGPVU KPENWFKPI VJG RTQXKUKQP QH EQNNCVGTCN QT UGEWTKV[ CICKPUV VJG NQCP QT ETGFKV QT VJG CRRNKECVKQP HQT CP[ ETGFKV HCEKNKV[ D[ VJG %QORCP[
2. DSGT EXECUTIVE COMMITTEE #U CV &GEGODGT VJG 'ZGEWVKXG¿U %QOOKVVGG EQORTKUGF QH /GODGTU CU HQNNQYU Name
Position
/T $TCPFQP 5JWK .KPI 9CPI
'ZGEWVKXG &KTGEVQT
/T #ODTQUG -CO 5JKPI %JCP
'ZGEWVKXG &KTGEVQT
/T (QQ 'PI %JWCP
'ZGEWVKXG &KTGEVQT
/T ;GQJ #KM %JGQPI
'ZGEWVKXG &KTGEVQT
/U ,WUVKPG /CP 5CP 9CPI
'ZGEWVKXG &KTGEVQT
Remarks 6JG CVVGPFKPI OGODGTU QH VJG 'ZGEWVKXG %QOOKVVGG CTG VQ GNGEV QPG QH VJG RCTVKEKRCPVU VQ DG VJG %JCKTOCP QH VJG OGGVKPI
Scope of the Duties and Powers of the Companyâ&#x20AC;&#x2122;s Executive Committee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¿U DWUKPGUU 6Q JCXG RQYGT VQ UGV QWV RQNKE[ KP TGNCVKQP VQ VJG YCIG CPF UCNCT[ UVTWEVWTG QH VJG %QORCP[
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
41
Management Structure
6Q CRRTQXG UKIPKHKECPV ECRKVCN KPXGUVOGPVU CU FGVGTOKPGF KP VJG CPPWCN DWFIGV CU OC[ DG CUUKIPGF D[ VJG %QORCP[¿U $QCTF QH &KTGEVQTU QT CEEQTFKPI VQ VJG TGUQNWVKQP QH VJG %QORCP[¿U $QCTF QH &KTGEVQTU IKXKPI CRRTQXCN KP RTKPEKRNG 6Q JCXG RQYGT VQ EQPUKFGT CPF CRRTQXG VJG ITCPVKPI QH CP[ NQCP QT ETGFKV D[ VJG %QORCP[ VQ VJG %QORCP[¿U UWDUKFKCTKGU KP VJG RTQRQTVKQP QH UJCTGJQNFKPI CPF UWDLGEV VQ VJG %QORCP[¿U CRRTQXCN RQYGT ETKVGTKC 6Q JCXG RQYGT VQ EQPUKFGT CPF CRRTQXG VJG DQTTQYKPI QH CP[ HWPFU VJG QDVCKPKPI QH CP[ ETGFKV NKPG VJG FGDV TGUVTWEVWTKPI QT VJG KUUWG QH FGDV KPUVTWOGPVU CPF VJG RTQXKUKQP QH UGEWTKV[ VJG WPFGTYTKVKPI QH NQCPU QT ETGFKV HCEKNKVKGU QH VJG %QORCP[ HQT RTQRQUCN VQ VJG OGGVKPI QH VJG %QORCP[¿U $QCTF QH &KTGEVQTU 6Q UGTXG QP VJG /CPCIGOGPV #FXKUQT[ $QCTF KP TGNCVKQP VQ HKPCPEKCN RQNKE[ OCTMGVKPI RGTUQPPGN CFOKPKUVTCVKQP CPF QVJGT QRGTCVKQPCN OGCUWTGU 6Q RGTHQTO QVJGT CEVKXKVKGU CU OC[ DG CUUKIPGF D[ VJG %QORCP[¿U $QCTF QH &KTGEVQTU HTQO VKOG VQ VKOG 6JG WPFGTVCMKPI QH RQYGT CU YGNN CU VJG ITCPVKPI QH RQYGT VQ QVJGT RGTUQPU CU FGGOGF CRRTQRTKCVG UJCNN GZENWFG VJG RQYGT CPF QT VJG ITCPVKPI QH RQYGT VQ CRRTQXG CP[ KVGOU KP YJKEJ C OGODGT QH VJG 'ZGEWVKXG %QOOKVVGG QT C RGTUQP OC[ JCXG CP KPVGTGUV QT C DGPGHKV QH QVJGT FGUETKRVKQP VJCV KU KP EQPHNKEV YKVJ VJG %QORCP[ QT KVU UWDUKFKCTKGU 6JG CRRTQXCN QH KVGOU QH VJG UCKF EJCTCEVGTKUVKE OWUV DG RTQRQUGF VQ VJG OGGVKPI QH VJG %QORCP[¿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
3. DSGT AUDIT COMMITTEE #U CV &GEGODGT VJG #WFKV %QOOKVVGG EQORTKUGF QH /GODGTU CU HQNNQYU Name
Position
/T 5WMRQTP %JCVEJCXCNCRQPI
%JCKTOCP QH VJG #WFKV %QOOKVVGG
&T 8KUUPW 2QQOOKVRCPKV
/GODGT QH VJG #WFKV %QOOKVVGG
/T %JYCP &GT #NGZ -KPI
/GODGT QH VJG #WFKV %QOOKVVGG
*Remark : /T %JYCP &GT #NGZ -KPI JCU CFGSWCVG GZRGTVKUG CPF GZRGTKGPEG VQ TGXKGY ETGFKVCDKNKV[ QH VJG HKPCPEKCN TGRQTVU 6JG 5GETGVCT[ QH VJG CWFKV EQOOKVVGG KU /U %JWNCNWM 5WYCPPKMMCMWN
Scope of Duties and Powers of the Companyâ&#x20AC;&#x2122;s Audit Committee 6Q TGXKGY VJG %QORCP[¿U HKPCPEKCN TGRQTVU RTQEGUU VQ GPUWTG VJCV VJG[ CTG CEEWTCVG CPF CFGSWCVG 6Q TGXKGY VJG KPVGTPCN EQPVTQNU CPF KPVGTPCN CWFKV HWPEVKQPU VQ GPUWTG VJCV VJG[ CTG UWKVCDNG CPF GHHKEKGPV CPF EQPUKFGT VJG KPFGRGPFGPEG QH RCTV[ CPF VQ IKXG VJG QRKPKQP QP VJG CRRQKPVOGPV VTCPUHGT QT UVQR JKTKPI QH VJG KPVGTPCN CWFKV QHHKEGT 6Q TGXKGY VJG %QORCP[¿U EQORNKCPEG YKVJ 5'%¿U CPF 5'6¿U .CYU CPF TGIWNCVKQPU CPF QVJGT NCY TGNGXCPV VQ VJG %QORCP[ DWUKPGUU 6Q EQPUKFGT UGNGEV CPF PQOKPCVG VJG %QORCP[¿U GZVGTPCN CWFKVQTU CPF VJGKT TGOWPGTCVKQPU CPF EQPFWEV C OGGVKPI YKVJ VJG CWFKVQT CV NGCUV QPEG RGT [GCT YKVJQWV OCPCIGOGPV RTGUGPV 6Q EQPUKFGT VTCPUCEVKQPU TGNCVGF VQ QT VTCPUCEVKQPU VJCV OC[ ECWUG EQPHNKEVU QH KPVGTGUV VQ EQORN[ YKVJ VJG NCYU CPF VJG 5'6¿U TGIWNCVKQP CPF CTG TGCUQPCDNG CPF HQT VJG JKIJGUV DGPGHKV QH VJG %QORCP[
ANNUAL REPORT 2012
42
Management Structure
6Q RTGRCTG CP CWFKV EQOOKVVGG TGRQTV D[ UGVVKPI VJG OKPKOWO 'ZGEWVKXG %QOOKVVGG CPF VQ KORNGOGPV VJG UCKF OKUUKQPU FGVCKN QDLGEVKXGU IWKFGNKPGU IQCNU KPENWFKPI VJG %QORCP[¿U RQNKEKGU CEEWTCVGPGUU EQORNGVGPGUU CPF ETGFKDKNKV[ QH VJG CPF VQ KUUWG KPUVTWEVKQPU CPF VQ UWRGTXKUG VJG KORNGOGPVCVKQP %QORCP[¿U HKPCPEKCN TGRQTV EQNNGEVKXGN[ VQ JCXG VJG RQYGT VQ TGETWKV GORNQ[GGU CPF CRRQKPV CFGSWCE[ QH VJG HKTO¿U KPVGTPCN EQPVTQN U[UVGO VJGO KP RQUKVKQPU CPF VQ JCXG RQYGT VQ KUUWG CP QTFGT HQT VJG EQORNKCPEG YKVJ 5'%¿U CPF 5'6¿U NCYU CPF TGIWNCVKQPU VTCPUHGT QH GORNQ[GGU CETQUU NKPGU QH YQTM FGRCTVOGPV UGEVKQP CPF QVJGT NCYU TGNGXCPV VQ VJG EQORCP[¿U DWUKPGUU QT VGTOKPCVG GORNQ[GGU HTQO VJG %QORCP[ VQ FGVGTOKPG VJG UWKVCDKNKV[ QH VJG GZVGTPCN CWFKVQT TCVG QH YCIG TGOWPGTCVKQP QT DQPWU RC[OGPV KPENWFKPI HTKPIG VTCPUCEVKQPU VJCV OC[ ECWUG EQPHNKEVU QH KPVGTGUV DGPGHKVU KP TGNCVKQP VQ CNN OGODGTU QH VJG UVCHH QH VJG %QORCP[ VJG PWODGT QH EQOOKVVGG OGGVKPIU CPF CVVGPFCPEG QH 6Q JCXG VJG RQYGT VQ KUUWG QTFGTU TGIWNCVKQPU TWNGU PQVKHKECVKQPU GCEJ OGODGT PQVKEGU VQ GPUWTG VJG RTQRGT KORNGOGPVCVKQP QH VJG %QORCP[¿U QVJGT EQPEGTPU VJCV JCXG CTKUGP CU VJG CWFKV EQOOKVVGG RQNKE[ CPF KPVGTGUV CPF VQ GPUWTG RTQRGT YQTMKPI TGIWNCVKQPU RGTHQTOGF KVU FWVKGU CU FGHKPGF KP VJG EQOOKVVGG¿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¿U #U CV &GEGODGT VJG 'ZGEWVKXGU QH VJG %QORCP[ YGTG $QCTF QH &KTGEVQTU CPF QT D[ VJG %QORCP[ (QT VJKU RWTRQUG VJG RQYGT KPENWFKPI VJG ITCPVKPI QH RQYGT VQ QVJGT RGTUQPU Name Position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cope of Duties and Powers of the Chief Executive 6Q VCMG QVJGT CEVKQPU CU OC[ DG CUUKIPGF D[ VJG %QORCP[¿U Officer $QCTF QH &KTGEVQTU HTQO VKOG VQ VKOG 6Q FGHKPG VJG OKUUKQPU QDLGEVKXGU IWKFGNKPGU IQCNU CPF %QORCP[¿U RQNKEKGU VQ DG RTGUGPVGF VQ VJG OGGVKPI QH VJG
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
43
Management Structure
Selection Process and Appointment of Directors Composition and appointment of the Executive Committee and Executive Directors #U VJG %QORCP[ FQGU PQV JCXG CP CF JQE 4GETWKVOGPV %QOOKVVGG RGTUQPU YJQ YKNN DG GNGEVGF CPF CRRQKPVGF CU C FKTGEVQT QT CP GZGEWVKXG QH VJG %QORCP[ OWUV RQUUGUU VJG SWCNKHKECVKQPU QH VJG 2WDNKE %QORCP[ #EV $ ' CPF VJG #TVKENGU QH #UUQEKCVKQP QH VJG %QORCP[ CPF OWUV PQV RQUUGUU RTQJKDKVKXG EJCTCEVGTKUVKEU RWTUWCPV VQ VJG 0QVKHKECVKQP QH VJG 5GEWTKVKGU CPF 'ZEJCPIG %QOOKUUKQP QH 5JCTGU
Composition and Appointment of the Company’s Board of Directors 6JG %QORCP[¿U $QCTF QH &KTGEVQTU OWUV DG EQORTKUGF QH PQV NGUU VJCP FKTGEVQTU CPF PQV OQTG VJCP FKTGEVQTU YJQ UJCNN DG GNGEVGF D[ VJG UJCTGJQNFGTU¿ OGGVKPI 0QV NGUU VJCP JCNH QH VJG PWODGT QH FKTGEVQTU UJCNN TGUKFG KP 6JCKNCPF 6JG #TVKENGU QH #UUQEKCVKQP QH VJG %QORCP[ RTQXKFGU HQT VJG UJCTGJQNFGTU¿ OGGVKPI VQ GNGEV FKTGEVQTU CEEQTFKPI VQ VJG TWNGU CPF OGVJQF CU HQNNQYU 'CEJ UJCTGJQNFGT UJCNN JCXG QPG XQVG RGT UJCTG 'CEJ UJCTGJQNFGT UJCNN GZGTEKUG CNN XQVGU VJCV JG UJG JCU WPFGT
VQ GNGEV QPG QT UGXGTCN RGTUQPU CU FKTGEVQT QT FKTGEVQTU 5JQWNF VJG UJCTGJQNFGTU GNGEV UGXGTCN FKTGEVQTU PQ UJCTGJQNFGT ECP FKXKFG JKU JGT XQVG HQT CP[ RGTUQPU QT ITQWR VQ CP[ GZVGPV CV CNN 6JG ECPFKFCVGU UJCNN DG TCPMGF KP QTFGT FGUEGPFKPI HTQO VJG JKIJGUV PWODGT QH XQVGU TGEGKXGF VQ VJG NQYGUV CPF UJCNN DG CRRQKPVGF CU FKTGEVQTU KP VJCV QTFGT WPVKN CNN QH VJG FKTGEVQT RQUKVKQPU CTG HKNNGF 9JGTG VJG XQVGU ECUV HQT ECPFKFCVGU KP FGUEGPFKPI QTFGT CTG VKGF YJKEJ YQWNF QVJGTYKUG ECWUG VJG PWODGT QH FKTGEVQTU VQ DG GZEGGFGF VJG EJCKTOCP ECUV C FGEKFKPI XQVG #V GXGT[ CPPWCN IGPGTCN QTFKPCT[ OGGVKPI QPG VJKTF QH VJG FKTGEVQTU UJCNN XCECVG VJG QHHKEG CV UWEJ VKOG +H VJG PWODGT QH FKTGEVQTU ECPPQV DG FKXKFGF KPVQ C OWNVKRNG QH VJG PWODGT PGCTGUV VQ QPG VJKTF QH VJG FKTGEVQTU UJCNN VJGP XCECVG VJG QHHKEG 6JG FKTGEVQTU YJQ XCECVG VJG QHHKEG OC[ DG TG GNGEVGF
6JG %QORCP[¿U $QCTF QH &KTGEVQTU UJCNN CRRQKPV VJG 'ZGEWVKXG %QOOKVVGG HTQO COQPI C PWODGT QH FKTGEVQTU QH VJG %QORCP[
Composition and appointment of the Audit Committee 6JG %QORCP[¿U $QCTF QH &KTGEVQTU UJCNN CRRQKPV VJG #WFKV %QOOKVVGG VQ DG GNGEVGF HTQO COQPI CV NGCUV RGTUQPU RQUUGUUKPI HWNN SWCNKHKECVKQPU CEEQTFKPI VQ VJG 0QVKHKECVKQP QH VJG 5VQEM 'ZEJCPIG QH 6JCKNCPF 6JG OGODGT QH VJG #WFKV %QOOKVVGG UJCNN DG KP QHHKEG HQT C [GCT VGTO
Qualifications and Criteria for recruitment of the Audit Committee 6JG /GODGT QH VJG #WFKV %QOOKVVGG OWUV DG CP +PFGRGPFGPV &KTGEVQTU 6JG EQORCP[ JCU FGHKPGF VJG OGCPKPI QH Á+PFGRGPFGPV &KTGEVQTUÂ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
ANNUAL REPORT 2012
44 Management Structure
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¿U FKTGEVQT OCLQT UJCTGJQNFGT QT UJCTGJQNFGTU YJQ CTG TGNCVGF VQ VJG %QORCP[¿U OCLQT UJCTGJQNFGT 0QV JCXKPI CP[ EJCTCEVGTKUVKEU YJKEJ OCMG JKO KPECRCDNG QH GZRTGUUKPI KPFGRGPFGPV QRKPKQPU YKVJ TGICTF VQ VJG %QORCP[¿U DWUKPGUU CHHCKTU
Monitoring the Usage of Internal Information 6JG %QORCP[ JCU C RQNKE[ VQ RTQJKDKV FKTGEVQTU CPF GZGEWVKXGU HTQO WUKPI KPVGTPCN KPHQTOCVKQP YJKEJ KU PQV [GV RWDNKEN[ FKUENQUGF HQT RGTUQPCN KPVGTGUV 6JKU WPCWVJQTK\GF WUG KPENWFGU VJG DW[KPI UGNNKPI QH VJG %QORCP[¿U UGEWTKVKGU D[ FKTGEVQTU GZGEWVKXGU CPF GORNQ[GGU YJQ ECP TGEGKXG VJG KPUKFG KPHQTOCVKQP 'HHQTVU UJQWNF DG OCFG VQ CXQKF VTCFKPI VJG %QORCP[¿U UJCTGU HQT CV NGCUV C OQPVJ RGTKQF DGHQTG RWDNKE FKUENQUWTG QH VJG HKPCPEKCN UVCVGOGPV 6JG %QORCP[ OWUV PQVKH[ VJG GZGEWVKXGU TGICTFKPI VJG TGRQTV QH VJG UJCTGJQNFKPI CPF VJG EJCPIG QP UJCTGJQNFKPI QH VJG %QORCP[¿U UJCTGU D[ VJG GZGEWVKXGU VJGKT URQWUGU CPF OKPQT EJKNFTGP VQ VJG 1HHKEG QH VJG 5GEWTKVKGU CPF 'ZEJCPIG %QOOKUUKQP CPF QH CP[ RQVGPVKCN RGPCNVKGU +H VJG FKTGEVQTU VJG GZGEWVKXGU CPF GORNQ[GGU XKQNCVG QT HCKN VQ EQORN[ YKVJ VJG %QORCP[¿U RQNKE[ QP VJG VTCFKPI KP UGEWTKVKGU D[ WUKPI KPUKFG KPHQTOCVKQP VJG %QORCP[ YKNN VCMG FKUEKRNKPCT[ CEVKQP CICKPUV UWEJ FKTGEVQTU GZGEWVKXGU QT GORNQ[GGU D[ HKTUVN[ IKXKPI C YTKVVGP YCTPKPI VJGP FGFWEVKQP QH RC[ VJGP VGORQTCT[ UWURGPUKQP QH YQTM YKVJQWV RC[ CPF WNVKOCVGN[ FKUOKUUCN HTQO GORNQ[OGPV FGRGPFKPI QP VJG ITCXKV[ QH UWEJ QHHGPEG
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
45
Board of Director and Management Biography
/T $TCPFQP 5JWK .KPI 9CPI KU VJG HQWPFGT )TQWR %JCKTOCP %'1 QH &5) +PVGTPCVKQPCN .KOKVGF Á&5)+. &5)+. C JQNFKPI EQORCP[ YKVJ EQTRQTCVG JGCFSWCTVGTU KP *QPI -QPI JCU GHHGEVKXG GSWKV[ CPF OCPCIGOGPV EQPVTQN QH VJTGG FKUVKPEV DWUKPGUU GPVKVKGU 6JG 'CUV #UKC 4GIKQP RTGFQOKPCPVN[ *QPI -QPI CPF %JKPC KU VJG DKTVJRNCEG QH &5) )TQWR 9QTNFYKFG HQWPFGF KP &5) +PVGTPCVKQPCN 6JCKNCPF 2.% KU VJG TGIKQPCN JGCFSWCTVGTU TGURQPUKDNG HQT VJG 5QWVJ 'CUV #UKC CPF GZRQTV OCTMGVU 6JG 0QTVJ #OGTKECP 4GIKQP MPQYP CU #UUQEKCVGF *[IKGPKE 2TQFWEVU ..% Á#*2 KU VJG RTGOKGT FKURQUCDNG FKCRGT UWRRNKGT VQ OCLQT TGVCKN EWUVQOGTU UWEJ CU 9CN /CTV CPF -TQIGT
Mr. Brandon Shui Ling Wang Chairman of the Board of Directors
$GHQTG HQWPFKPI VJG &5) )TQWR /T 9CPI JCF CP KORTGUUKXG KPVGTPCVKQPCN ECTGGT YKVJ NGCFKPI CKTNKPGU CHVGT ITCFWCVKPI HTQO 5V (TCPEKU :CXKGT %QNNGIG KP *QPI -QPI *G KU OCTTKGF VQ 'KNGGP YKVJ HQWT EJKNFTGP /GNKUUC ,WUVKPG &CXKPKC CPF 4C[PGT
#ODTQUG %JCP LQKPGF &5) +PVGTPCVKQPCN 6JCKNCPF 2.% CU %JKGH 'ZGEWVKXG 1HHKEGT TGURQPUKDNG HQT VJG 5QWVJ 'CUV #UKCP OCTMGVU KP /C[ CPF JCU CUUWOGF VJG QXGTCNN TGURQPUKDKNKV[ QH #UKC UKPEG &GEGODGT *G YCU CRRQKPVGF VQ DG &KTGEVQT QH &5)6 &5)/5$ &5)/. CPF &5)5 CPF CNUQ DG %QOOKUUKQPGT QH 26&5)
Mr. Ambrose Kam Shing Chan Director and Chief Executive Officer
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
ANNUAL REPORT 2012
46
Board and Management Biography
'PI %JWCP LQKPGF &5) /CNC[UKC KP 1EVQDGT CU %JKGH 1RGTCVKPI 1HHKEGT HQT /CNC[UKC 5KPICRQTG CPF +PFQPGUKC CPF CUUWOGF CFFKVKQPCN TGURQPUKDKNKV[ HQT QXGTCNN 5QWVJ 'CUV #UKC GHHGEVKXG (GDTWCT[ $GHQTG LQKPKPI &5) 'PI %JWCP YCU YKVJ $CWUEJ .QOD HTQO VQ FWTKPI YJKEJ JG JGNF XCTKQWU UGPKQT OCPCIGOGPV TQNGU KPENWFKPI VJCV QH /CPCIKPI &KTGEVQT *QPI -QPI CPF 5QWVJ GCUV #UKC
Mr. Foo Eng Chuan Director and Chief Operating Officer
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¿U (KPCPEG &KTGEVQT HQT 5'# #UKC (KPCPEG 5JCTGF 5GTXKEG %GPVTG HTQO #RTKN VQ /C[ $GHQTG VJCV JG YCU VJG 5QWVJGTP #UKC (KPCPEG %QPVTQNNGT KP 5VT[MGT %QTRQTCVKQP C INQDCN OGFKECN FGXKEG EQTRQTCVKQP HTQO /C[ VQ /CTEJ
Mr. Yeoh Aik Cheong Director and Chief Financial Officer
#KM %JGQPI UVCTVGF JKU ECTGGT CU CP CWFKVQT YKVJ $&1 $KPFGT CPF KU DQVJ C %GTVKHKGF %JCTVGTGF #EEQWPVCPV CPF C %GTVKHKGF 2WDNKE #EEQWPVCPV *G ITCFWCVGF YKVJ C $CEJGNQT &GITGG QH #EEQWPVKPI *QPQTU HTQO 7PKXGTUKV[ QH /CNC[C KP -WCNC .WORWT /CNC[UKC
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
47
Board and Management Biography
,WUVKPG LQKPGF VJG &5) ITQWR KP YJGTG UJG CUUWOGF VJG TQNG QH 2TQFWEV /CPCIGT HQT &5) /CNC[UKC +P UJG CUUWOGF VJG RQUKVKQP QH &KTGEVQT QH 5VTCVGIKE $WUKPGUU &GXGNQROGPV HQT #UKC ,WUVKPG YCU CRRQKPVGF CU C %QORCP[ FKTGEVQT KP #RTKN
Ms. Justine Man San Wang
,WUVKPG ITCFWCVGF YKVJ C /CUVGTU QH $WUKPGUU #FOKPKUVTCVKQP FGITGG HTQO 5#5+0 )TCFWCVG +PUVKVWVG QH $WUKPGUU #FOKPKUVTCVKQP CV %JWNCNQPIMQTP 7PKXGTUKV[ 2TKQT VQ VJKU UJG GCTPGF C /CUVGT QH 5EKGPEG KP +PVGTPCVKQPCN 2QNKVKEU HTQO VJG 5EJQQN QH 1TKGPVCN CPF #HTKECP 5VWFKGU CV VJG 7PKXGTUKV[ QH .QPFQP 7- CPF C $CEJGNQT QH #TVU OCLQTKPI KP )GQITCRJ[ HTQO 5WUUGZ 7PKXGTUKV[
Director and Director of Strategic Business Development 5WMRQTP JCU DGGP CRRQKPVGF CU CP +PFGRGPFGPV &KTGEVQT QH VJG $QCTF QH &KTGEVQTU UKPEG CPF CNUQ C /GODGT QH VJG #WFKV %QOOKVVGG +P JG YCU CRRQKPVGF CU %JCKTOCP QH VJG #WFKV %QOOKVVGG
Mr. Sukporn Chatchavalapong Independent Director and Chairman of the Audit Committee
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
Dr. Vissnu Poommipanit Independent Director and Member of the Audit Committee
&T 8KUUPW QDVCKPGF JKU #EEQWPVKPI FGITGG HTQO #UUWORVKQP 7PKXGTUKV[ CPF JKU /CUVGT¿U &GITGG KP (KPCPEG CPF %QPVTQNNGTUJKR CPF &QEVQT QH /CPCIGOGPV CV &G .C 5CNNG 7PKXGTUKV[ 2TKQT VQ VJCV JG JCF GZVGPUKXG EQOOGTEKCN GZRGTKGPEGU YKVJ VJG /CNN )TQWR %QORCP[ 7PKQP #UKC (KPCPEG 2WDNKE %Q .VF %GPVTCN 2CVVCPC 2WDNKE %Q .VF 0%% /CPCIGOGPV CPF &GXGNQROGPV %Q .VF CPF '&5 6JCKNCPF %Q .VF
ANNUAL REPORT 2012
48
Board and Management Biography
#NGZ -KPI JCU DGGP CRRQKPVGF CU CP +PFGRGPFGPV &KTGEVQT QH VJG $QCTF QH &KTGEVQTU CPF C /GODGT QH VJG #WFKV %QOOKVVGG UKPEG (GDTWCT[ #NGZ -KPI UGTXGU CU %JKGH 'ZGEWVKXG CPF /CPCIKPI &KTGEVQT ¼ #UKC QH #UUQEKCVGF $TKVKUJ (QQFU UKPEG #NGZ -KPI YCU /CPCIKPI &KTGEVQT ¼ 0QTVJ #5'#0 4GIKQP HTQO VQ CPF /CPCIKPI &KTGEVQT ¼ 0QTVJ #UKC 4GIKQP HTQO VQ CV #UUQEKCVGF $TKVKUJ (QQFU
Mr. Chwan-Der Alex King Independent Director and Member of the Audit Committee
#NGZ -KPI ITCFWCVGF HTQO 6JG 9JCTVQP 5EJQQN 7PKXGTUKV[ QH 2GPPU[NXCPKC YKVJ /$# FGITGG CPF /# FGITGG HTQO 6JG 5EJQQN QH #TVU CPF 5EKGPEGU 7PKXGTUKV[ QH 2GPPU[NXCPKC
%JCEJCPGG #PCPVYCVCPCRQPI LQKPGF &5) +PVGTPCVKQPCN 6JCKNCPF 2.% KP ,WPG CU %QOOGTEKCN &KTGEVQT HQT 6JCKNCPF +P ,WPG UJG YCU RTQOQVGF CU )GPGTCN /CPCIGT ¼ 6JCKNCPF 2TKQT VQ LQKPKPI &5) %JCEJCPGG YCU %QOOGTEKCN &KTGEVQT .GICN 'PVKV[ *GCF QH $CWUEJ .QOD 6JCKNCPF C INQDCN G[G ECTG EQORCP[ 5JG YCU TGURQPUKDNG HQT 6JCKNCPF /[CPOCT %CODQFKC CPF .CQU OCTMGVU 5JG JCU CESWKTGF QXGT [GCTU UCNGU CPF OCTMGVKPI OCPCIGOGPV GZRGTKGPEG HTQO OWNVKPCVKQPCN (/%) %QNICVG 2CNOQNKXG 5% ,QJPUQP CPF 4GEMKVV $GPEMKUGT
Ms. Chachanee Anantwatanapong General Manager - Thailand
%JCEJCPGG GCTPGF C /CUVGT &GITGG QH $WUKPGUU #FOKPKUVTCVKQP OCLQT KP OCTMGVKPI CPF C $CEJGNQT QH #EEQWPVKPI HTQO %JWNCNQPIMQTP 7PKXGTUKV[ 5JG CNUQ TGEGKXGF C %GTVKHKECVG QH #FXGTVKUKPI HTQO VJG 7PKXGTUKV[ QH %CNKHQTPKC .QU #PIGNGU
5KOQP 9QPI LQKPGF &5) *QPI -QPI KP ,WN[ CU 2TQFWEVKQP #UUKUVCPV *G DGECOG 2TQFWEVKQP 5WRGTXKUQT KP CPF YCU RTQOQVGF VQ 2TQFWEVKQP /CPCIGT KP +P 5KOQP CUUWOGF TGURQPUKDKNKV[ HQT VJG GZRQTV OCPWHCEVWTKPI CPF PGY DWUKPGUU FGXGNQROGPV KP 5KPICRQTG <JQPIUJCP %JKPC CPF +PFQPGUKC +P JG YCU VTCPUHGTTGF VQ /CNC[UKC CU 2NCPV /CPCIGT VQ UVCTV WR CPF QXGTUGGU NQECN OCPWHCEVWTKPI QRGTCVKQPU +P /C[ 5KOQP CUUWOGF VJG 4GIKQPCN 2NCPV /CPCIGT RQUKVKQP YKVJ TGURQPUKDKNKVKGU HQT OCPWHCEVWTKPI QRGTCVKQP KP /CNC[UKC CPF +PFQPGUKC +P 5GRVGODGT 5KOQP YCU RTQOQVGF VQ VJG RQUKVKQP QH 2NCPV &KTGEVQT 5'#
Mr. Simon Wong Plant Director
2TKQT VQ LQKPKPI &5) 5KOQP YQTMGF CV 6CK (WPI -PKVVKPI %QORCP[ CU #UUKUVCPV 2TQFWEVKQP /CPCIGT NGCFKPI C YQTMHQTEG QH QXGT YQTMGTU KP *QPI -QPI 5KOQP ITCFWCVGF HTQO %JW *QK %QNNGIG YKVJ $CEJGNQT &GITGG QH %KXKN 'PIKPGGTKPI
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
49 Corporate Governance 6JG %QORCP[ JCU UGV WR VJG RQNKE[ KP TGNCVKQP VQ UWRGTXKUKQP QH KPXKVCVKQP NGVVGT VQ VJG UJCTGJQNFGTU QP #RTKN CPF OCFG VJG DWUKPGUU HQT VTCPURCTGPE[ KP VJG QRGTCVKQP QH VJG %QORCP[ CV CP CPPQWPEGOGPV VJTQWIJ VJG PGYURCRGT HQT EQPUGEWVKXG CNN NGXGNU KPENWFKPI QRGTCVKPI UVCHH GZGEWVKXGU CPF FKTGEVQTU QH VJG FC[U HTQO #RTKN KP QTFGT VQ KPHQTO VJG UJCTGJQNFGTU %QORCP[ YJKEJ HQTOU VJG KORQTVCPV DCUKU HQT KORTQXKPI QRGTCVKPI KP CFXCPEG GHHKEKGPE[ CPF GHHGEVKXGPGUU QH VJG %QORCP[ HQT VJG NQPI VGTO Ã&#x2020; +P QTFGT VQ HCEKNKVCVG VJG UJCTGJQNFGTU YJQ ECPPQV CVVGPF VJG DGPGHKV QH VJG UJCTGJQNFGTU EWUVQOGTU KPXGUVQTU CPF VJG IGPGTCN OGGVKPI VJG EQORCP[ UGPV VJG RTQZ[ HQTO VQIGVJGT YKVJ VJG RWDNKE 6JG %QORCP[ JCU KORNGOGPVGF KVU EQTRQTCVG IQXGTPCPEG KPXKVCVKQP NGVVGT CPF NKUVGF VJG TGSWKTGF FQEWOGPVU HQT VJG RTCEVKEG CU HQNNQYU OGGVKPI /QTGQXGT VJG %QORCP[ JCU CWVJQTK\GF +PFGRGPFGPV &KTGEVQTU /GODGT QH #WFKV %QOOKVVGG &T 8KUUCPW 2WOKRCPKV QT /T %JYCP &GT #NGZ -KPI CU C RTQZ[ QP DGJCNH QH VJG 1. Right of Shareholders UJCTGJQNFGTU KP VJG GXGPV VJG UJCTGJQNFGTU ECPPQV CVVGPF VJG 6JG %QORCP[ JCU TGEQIPK\GF VJG KORQTVCPEG QH VJG UJCTGJQNFGTU¿ OGGVKPI TKIJV 6JG %QORCP[¿U RTCEVKEGU QP 4KIJV QH 5JCTGJQNFGTU YJKEJ Ã&#x2020; 2QUV VJG OGGVKPI KPXKVCVKQP NGVVGT CPF CVVCEJOGPV XKC VJG CTG KP NKPG YKVJ VJG IQQF EQTRQTCVG IQXGTPCPEG CTG CU HQNNQYU %QORCP[ YGDUKVG +P VJG %QORCP[ RQUVGF VJG OGGVKPI Ã&#x2020; 2TQRQUG FKTGEVQTU¿ TGOWPGTCVKQP HQT UJCTGJQNFGTU¿ CRRTQXCN QP KPXKVCVKQP NGVVGT QP VJG %QORCP[ YGDUKVG QP #RTKN [GCTN[ DCUKU Ã&#x2020; 2TGUGPV KORQTVCPV KPHQTOCVKQP HQT UJCTGJQNFGTU XKC EQORCP[ Ã&#x2020; 5GV VJG XGPWG CPF VJG CRRTQRTKCVG VKOG VJCV KU EQPXGPKGPV HQT GXGT[ UJCTGJQNFGT VQ CVVGPF VJG OGGVKPI +P VJG YGDUKVG ¼ YYY FUICR EQO %QORCP[ JGNF VJG #PPWCN )GPGTCN /GGVKPI QH 5JCTGJQNFGTU Ã&#x2020; 0QV VQ NGUUGP VJCV UJCTGJQNFGTU¿ TKIJV D[ PQV FKUVTKDWVKPI 0Q QP #RTKN CV CO CV )QXGTPQT UKIPKHKECPV KPHQTOCVKQP KOOGFKCVGN[ QP VJG OGGVKPI FC[ QT PQV 2CEKHKE %NWD VJ (NQQT 6YQ 2CEKHKE 2NCEG 6QYGT 6JG XGPWG KPENWFG CFFKVKQPCN CIGPFC CPF CNNQY VJG NCVGEQOGT UJCTGJQNFGTU YCU EQPXGPKGPV HQT VTCXGNNKPI D[ RWDNKE VTCPURQTVCVKQP VQ CVVGPF VJG OGGVKPI Ã&#x2020; +PHQTO VJG TGUQNWVKQP QH VJG OGGVKPI CHVGT VJG OGGVKPI JCU Ã&#x2020; 5JCTGJQNFGTU YKNN DG CDNG VQ OCMG GPSWKTKGU GZRTGUU QRKPKQPU DGGP EQORNGVGF CPF UWDOKV CPF RWDNKUJ VJG OKPWVGU QH VJG CPF OCMG TGEQOOGPFCVKQPU OGGVKPI QP VJG EQORCP[ YGDUKVG YKVJKP FC[U CHVGT VJG Ã&#x2020; 6JG OKPWVGU QH VJG OGGVKPIU CTG EQTTGEVN[ TGEQTFGF HQT VJG OGGVKPI +P VJG %QORCP[ JCF KPHQTOGF VJG TGUQNWVKQP UJCTGJQNFGTU VQ KPURGEV CPF QH VJG OGGVKPI QP #RTKN CPF RWDNKUJGF VJG OKPWVGU Ã&#x2020; 2TQXKFG C VTCPUNCVQT KP ECUG VJG UJCTGJQNFGTU¿ OGGVKPI KU QH VJG OGGVKPI QP VJG EQORCP[ YGDUKVG QP /C[ EQPFWEVGF KP HQTGKIP NCPIWCIG VQ GPUWTG VJCV VJG UJCTGJQNFGTU Ã&#x2020; 4GEQTF VJG OGGVKPI KP XKFGQ HQTOCV CPF RQUV QP VJG EQORCP[ ECP EQORNGVGN[ WPFGTUVCPF VJG OGUUCIG QH VJG OGGVKPI CPF YGDUKVG CPF ECP CUM QT GZRTGUU VJGKT QRKPKQPU Ã&#x2020; 5GV VJG RTQVGEVKQP RQNKE[ KP QTFGT VQ RTGXGPV VJG WUG QH KPVGTPCN KPHQTOCVKQP D[ FKTGEVQTU CPF OCPCIGOGPV HQT VJGKT RGTUQPCN WUG 2. Equitable Treatment of Shareholders 6JG FGVCKN ECP DG HQWPF WPFGT VJG 7UG QH +PVGTPCN +PHQTOCVKQP 6JG %QORCP[ JCU VTGCVGF GXGT[ UJCTGJQNFGT GSWCNN[ D[ JCXKPI UGEVKQP RTCEVKEGU YJKEJ CTG KP NKPG YKVJ VJG IQQF EQTRQTCVG IQXGTPCPEG CU HQNNQYU 3. Role of Stakeholders Ã&#x2020; &GNKXGT C OGGVKPI KPXKVCVKQP NGVVGT VQIGVJGT YKVJ UWRRQTVKPI Ã&#x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
ANNUAL REPORT 2012
50 Corporate Governance
Ã&#x2020; 6JG %QORCP[ JCU CNYC[U VTGCVGF UVCHH GSWCNN[ CPF HCKTN[ D[ Ã&#x2020; +P QTFGT VQ RTQXKFG VJG UJCTGJQNFGTU CPF KPXGUVQTU CEEGUU VQ VJG %QORCP[¿U KPHQTOCVKQP VJTQWIJ XCTKQWU EJCPPGNU RTQXKFKPI UWKVCDNG TGOWPGTCVKQP 6JG %QORCP[ CNUQ RTQXKFGU UWEJ CU #PPWCN 4GRQTV YGDUKVG CPF CPCN[UV OGGVKPIU RTQRGT UVCHH YGNHCTG K G RTQXKFGPV HWPF ITQWR JGCNVJ KPUWTCPEG +P VJG %QORCP[ JCU EQPFWEVGF XCTKQWU RTGUGPVCVKQP CPF UCHGV[ RQNKEKGU VJTQWIJ EQORCP[ XKUKVU EQPHGTGPEG ECNNU 1RRQTVWPKV[ &C[ Ã&#x2020; 6JG RWTEJCUG QH IQQFU CPF UGTXKEGU HTQO VTCFKPI RCTVPGTU JCU
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CU CV &GEGODGT %QORCP[ JCU UGV WR C EJCPPGN VQ ICVJGT CP[ EQORNCKPVU UWIIGUVKQPU QT EQOOGPVU VQ EQPVCEV YKVJ VJG $QCTF QH &KTGEVQTU FKTGEVQTU CTG GZGEWVKXG FKTGEVQTU XKC VJG EQORCP[ YGDUKVG QT VJG UVCMGJQNFGTU OC[ UGPF D[ FKTGEVQTU CTG PQP GZGEWVKXG FKTGEVQTU CPF CNUQ OCKN QT D[ JCPF VQ VJG %QORCP[ +PFGRGPFGPV &KTGEVQTU /GODGT QH VJG #WFKV %QOOKVVGG Ã&#x2020; 1PG VJKTF QH VJG %QORCP[¿U FKTGEVQTU CTG KPFGRGPFGPV 4. Information Disclosure and Transparency FKTGEVQTU 5JQWNF VJCV FKTGEVQT JCXG CP[ KPVGTGUV KP CP[ 6JG %QORCP[ FKUENQUGU OCVGTKCN KPHQTOCVKQP KPENWFKPI (KPCPEKCN OCVVGTU JG QT UJG YKNN PQV JCXG VJG TKIJV VQ XQVG QP VJG UCKF 4GRQTVU CPF QVJGT KPHQTOCVKQP VJCV CTG ENGCT EQPEKUG GCU[ OCVVGTU VQ WPFGTUVCPF EQORNGVG CPF CFGSWCVG TGNKCDNG CPF VKOGN[ Ã&#x2020; 6JG %QORCP[ UGRCTCVGU VJG RQUKVKQP QH %JCKTOCP QH VJG KP VJG #PPWCN 4GIKUVTCVKQP 5VCVGOGPV (QTO #PPWCN 4GRQTV $QCTF QH &KTGEVQTU CPF %JKGH 'ZGEWVKXG 1HHKEGT %'1 KPVQ %QORCP[ 9GDUKVG CPF XKC 5'6 U[UVGO 6JKU KU VQ GPUWTG VJCV RQUKVKQPU VQ DG JGNF D[ FKHHGTGPV RGTUQPU KP QTFGT VQ CNN UJCTGJQNFGTU ECP CEEGUU VQ VJG %QORCP[¿U KPHQTOCVKQP UGITGICVG VJG FWV[ QH UGVVKPI WR RQNKE[ CPF DWUKPGUU GSWCNN[ 6JG %QORCP[¿U RTCEVKEGU QP VJG +PHQTOCVKQP &KUENQUWTG UWRGTXKUKQP HTQO TQWVKPG OCPCIGOGPV &WV[ CPF CWVJQTKV[ CPF 6TCPURCTGPE[ YJKEJ CTG KP NKPG YKVJ VJG IQQF EQTRQTCVG QH VJG $QCTF QH &KTGEVQTU 'ZGEWVKXG $QCTF CPF VJG #WFKV IQXGTPCPEG CU HQNNQYU %QOOKVVGG CTG ENGCTN[ UGRCTCVGF CU FGVCKNGF KP /CPCIGOGPV Ã&#x2020; &KUENQUG C ENGCT KPHQTOCVKQP QH UJCTGJQNFKPI UVTWEVWTG 5VTWEVWTG UGEVKQP Ã&#x2020; &KUENQUG VJG UJCTGJQNFKPI KPHQTOCVKQP QH FKTGEVQTU CPF Ã&#x2020; 6JG %QORCP[ JCU CP GUVCDNKUJGF VGTO QH QHHKEG HQT FKTGEVQTU OCPCIGOGPV KP VJG #TVKENGU QH #UUQEKCVKQP VJCV CV GCEJ #PPWCN )GPGTCN /GGVKPI QH 5JCTGJQNFGTU QPG VJKTF QH VJG FKTGEVQTU QT KH VJGKT Ã&#x2020; &KUENQUG VJG KPHQTOCVKQP QP TGNCVGF VTCPUCEVKQPU PCOGU PWODGT KU PQV C OWNVKRNG VJTGG VJG PWODGT PGCTGUV VQ QPG CPF TGNCVKQPUJKRU VTCPUCEVKQP XCNWGU KPENWFKPI VJG DQCTF¿U VJKTF OWUV TGVKTG HTQO QHHKEG 6JGTGHQTG VJG VGTO QH GCEJ QRKPKQP QP VJG VTCPUCEVKQPU FKTGEVQT KU UGV CV [GCTU Ã&#x2020; 3WCNKV[ QH HKPCPEKCN TGRQTVU VJG %QORCP[ CRRQKPVGF &GNQKVVG 6QWEJG 6QJOCVUW ,CK[QU #WFKV %Q .VF YJQ JCU DGGP EGTVKHKGF D[ VJG 5GEWTKVKGU CPF 'ZEJCPIG %QOOKUUKQP CU CP 5.2 Sub-committee 6JG %QORCP[¿U $QCTF QH &KTGEVQTU JCU CRRQKPVGF C KPFGRGPFGPV CWFKVQT 6JG EQORCP[¿U NCVGUV HKPCPEKCN TGRQTV UWD EQOOKVVGG VQ CUUKUV QP VJG UWRGTXKUKQP QH VJG DWUKPGUU YCU EGTVKHKGF YKVJ WPSWCNKHKGF QRKPKQP HTQO VJG CWFKVQT CU HQNNQYU Ã&#x2020; 6JG %QORCP[ GUVCDNKUJGF VJG +PXGUVQT 4GNCVKQPU &GRCTVOGPV VQ DG C EJCPPGN VQ FKUENQUG VJG KPHQTOCVKQP VQ VJG UJCTGJQNFGTU CPCN[UVU CPF IGPGTCN KPXGUVQTU 6JG +PXGUVQT 4GNCVKQPU &GRCTVOGPV ECP DG TGCEJGF CV GZV CPF
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
51
Corporate Governance
Ã&#x2020; 6JG #WFKV %QOOKVVGG EQPUKUVU QH KPFGRGPFGPV FKTGEVQTU Ã&#x2020; 6JG $QCTF QH &KTGEVQTU EQPUKFGTU FGHKPGU CPF UGRCTCVGU YKVJ C [GCT VGPWTG &GVCKNU QH VJG CWVJQTKV[ CPF FWV[ QH VJG ENGCT CPF FKUVKPEVKXG TQNGU CPF TGURQPUKDKNKVKGU YKVJKP KVUGNH #WFKV %QOOKVVGG CTG RTQXKFGF KP /CPCIGOGPV 5VTWEVWTG VJG 'ZGEWVKXG %QOOKVVGG VJG #WFKV %QOOKVVGG CPF VJG UGEVKQP %JKGH 'ZGEWVKXG 1HHKEGT Ã&#x2020; 6JG RGTUQP VQ DG CRRQKPVGF CU C OGODGT QH #WFKV Ã&#x2020; 6JG $QCTF QH &KTGEVQTU JCU CRRQKPVGF /U /CPGGRQTP %QOOKVVGG OWUV DG CP KPFGRGPFGPV FKTGEVQT 6JG %QORCP[ -QTMKVVKUWPVJQTP CU VJG %QORCP[ 5GETGVCT[ VQ DG TGURQPUKDNG JCU FGHKPGF VJG OGCPKPI QH +PFGRGPFGPV &KTGEVQTU CU RGT HQT CPF VQ WPFGTVCMG VJG VCUMU QH VJG %QORCP[ 5GETGVCT[ VJG ETKVGTKC UGV D[ VJG %CRKVCN /CTMGV 5WRGTXKUQT[ $QCTF KP QTFGT VQ EQORN[ YKVJ 5GEVKQP QH VJG 5GEWTKVKGU 6QT %JQT YJKEJ KU RTQXKFGF KP /CPCIGOGPV CPF 'ZEJCPIG $ ' KPENWFKPI KVU COGPFOGPVU 5VTWEVWTG UGEVKQP Ã&#x2020; 6JG %QORCP[ JCU GUVCDNKUJGF C 4GRQTV QH VJG $QCTF QH Ã&#x2020; 6JG %QORCP[ FQGU PQV JCXG C 4GOWPGTCVKQP &GVGTOKPCVKQP &KTGEVQTU 4GURQPUKDKNKVKGU HQT (KPCPEKCN 5VCVGOGPVU 5WD EQOOKVVGG *QYGXGT VJG YCIG CPF UCNCT[ UVTWEVWTG RTGUGPVGF VQIGVJGT YKVJ VJG (KPCPEKCN 5VCVGOGPV KP VJG JCU DGGP ECTGHWNN[ EQPUKFGTGF D[ VJG 'ZGEWVKXG %QOOKVVGG #PPWCN 4GRQTV D[ JCXKPI CP CRRTQRTKCVG RTQEGUU CPF DGPEJOCTMKPI YKVJ VJG TGHGTGPEGF KPFWUVT[ QH UKOKNCT UK\G KPENWFKPI VCMKPI 5.4 Board Meeting KPVQ EQPUKFGTCVKQP VJG %QORCP[ HKPCPEKCN RGTHQTOCPEG Ã&#x2020; 6JG %QORCP[ FGNKXGTU VJG PQVKEG QH $QCTF QH &KTGEVQTU¿
5.3 Roles and Responsibilities of the Board of Directors Ã&#x2020; 6JG %QORCP[¿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¿ OGGVKPI TGURQPUKDN[ JQPGUVN[ CPF ECTGHWNN[ KP EQORNKCPEG YKVJ VJG IQQF EQTRQTCVG IQXGTPCPEG RTKPEKRNG 6JKU KU VQ OCZKOK\G UJCTGJQNFGTU¿ XCNWG Ã&#x2020; 6JG %QORCP[ RNCEGU ITGCV KORQTVCPEG QP VJG KPVGTPCN EQPVTQN U[UVGO KPVGTPCN CWFKV CPF TKUM OCPCIGOGPV KPENWFKPI EJGEM CPF DCNCPEG U[UVGO VQ GPUWTG VJCV VJG QRGTCVKQP QH VJG %QORCP[ KU ECTTKGF QWV KP CEEQTFCPEG YKVJ VJG NCYU 6JGTG KU CNUQ C IQQF EQPVTQN U[UVGO VQ GPUWTG OCZKOWO GHHKEKGPE[ CPF GHHGEVKXG KPVGTPCN EQPVTQN U[UVGO HQT VJG %QORCP[
OGGVKPI VQIGVJGT YKVJ UWRRQTVKPI FQEWOGPVU VQ FKTGEVQTU HQT EQPUKFGTCVKQP DGHQTG VJG OGGVKPI FCVG CV NGCUV FC[U KP CFXCPEG 6JKU KU KP CEEQTFCPEG YKVJ VJG OKPKOWO VKOGHTCOG TGSWKTGF D[ NCY #V NGCUV QPG $QCTF QH &KTGEVQTU¿ OGGVKPI KU JGNF KP GCEJ SWCTVGT YKVJ CFFKVKQPCN OGGVKPI VQ DG ECNNGF KH TGSWKTGF Ã&#x2020; +P VJGTG YGTG VQVCNN[ $QCTF QH &KTGEVQTU OGGVKPIU /KPWVGU QH VJG OGGVKPIU CTG CEEWTCVGN[ CPF EQORNGVGN[ TGEQTFGF KP YTKVKPI D[ %QORCP[ 5GETGVCT[ /KPWVGU QH VJG OGGVKPIU EGTVKHKGF D[ VJG $QCTF QH &KTGEVQTU YKNN DG TGVCKPGF HQT HWTVJGT GZCOKPCVKQP D[ VJG $QCTF QH &KTGEVQTU CPF QVJGT TGNCVGF RCTVKGU 6JG %QORCP[ FKUENQUGU VJG OGGVKPI CVVGPFCPEG QH GCEJ FKTGEVQTU WPFGT /CPCIGOGPV 5VTWEVWTG UGEVKQP Ã&#x2020; 6JG %QORCP[ JCU UGV WR VJG OGGVKPI QH VJG #WFKV %QOOKVVGG CPF VJG GZVGTPCN CWFKVQT YKVJQWV VJG RTGUGPEG QH GZGEWVKXG FKTGEVQTU CPF OCPCIGOGPV KP QTFGT VQ GPJCPEG IQQF EQTRQTCVG IQXGTPCPEG CPF VTCPURCTGPE[ VQ VJG %QORCP[ HKPCPEKCN UVCVGOGPV 6JG OGGVKPI KU UGV SWCTVGTN[ RTKQT VQ VJG CRRTQXCN QH SWCTVGTN[ HKPCPEKCN UVCVGOGPVU
ANNUAL REPORT 2012
52 Corporate Governance
Ã&#x2020; +P 6JG OGGVKPI CVVGPFCPEG KU CU HQNNQYU Meeting Attendance (times / total) Name Board of Directors
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5.5 Remuneration Ã&#x2020; 6JG %QORCP[ JCU UGV WR C ENGCT RQNKE[ HQT TGOWPGTCVKPI FKTGEVQTU CPF GZGEWVKXGU 6JG FKTGEVQTU TGOWPGTCVKQP UJCNN DG CRRTQXGF D[ UJCTGJQNFGTU¿ OGGVKPI YJKNG GZGEWVKXG TGOWPGTCVKQP UJCNN DG CRRTQXGF D[ VJG $QCTF QH &KTGEVQTU 6JG TGOWPGTCVKQP HQT FKTGEVQTU CPF GZGEWVKXGU CTG RTQXKFGF CV VJG UCOG NGXGN CU KPFWUVT[ RTCEVKEGU CPF UWHHKEKGPV VQ CVVTCEV CPF TGVCKP ECRCDNG CPF SWCNKHKGF FKTGEVQTU CPF GZGEWVKXGU Ã&#x2020; 6JG #PPWCN )GPGTCN /GGVKPI QH 5JCTGJQNFGTU 0Q JGNF QP #RTKN CRRTQXGF VJG FKTGEVQTU TGOWPGTCVKQP HQT [GCT D[ CRRTQXKPI VJG TGOWPGTCVKQP HQT VJG VJTGG +PFGRGPFGPV &KTGEVQTU CPF /GODGT QH VJG #WFKV %QOOKVVGG CV $CJV GCEJ 1VJGT FKTGEVQTU CTG PQV GPVKVNGF VQ TGEGKXG VJG TGOWPGTCVKQP
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
53 Dividend Policy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
ANNUAL REPORT 2012
54 Related Transactions &GVCKNU QH TGNCVGF VTCPUCEVKQPU QH VJG %QORCP[ CPF KVU UWDUKFKCTKGU YKVJ RGTUQPU YJQ OC[ JCXG EQPHNKEV QH KPVGTGUV Company / Nature of Business / Relationship &5) +PVGTPCVKQPCN .VF
Á&5)+. - *QNFKPI %QORCP[ - 4GIKUVGTGF KP $8+ - *GCF 1HHKEG KP *-
Characteristics of transactions
Value of transactions (million Baht) Audited Audited
Opinion of the Audit Committee/ Necessity and reasonableness
31 December 11 31 December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yaNV[ (GG 4CVG QH OCPCIGOGPV HGGU VJCV VJG %QORCP[ CNUQ RCKF .KEGPUG 4Q[CNV[ HGG VQ &5)+. JCU VQ RC[ VQ &5)+. KU JKIJGT VJCP VJQUG QH VJG QVJGT UWDUKFKCTKGU 6JG OCPCIGOGPV UWRRQTV VQ VJG %QORCP[ KU OQTG KPVGPUG CU EQORCTG VQ VJG %QORCP[¿U UWDUKFKCTKGU &5)+. KU VJG ETGFKVQT QH VJG %QORCP[ &5)/. Aging %WTTGPV &5)/5$ 26&5) CPF &5)5 FWG VQ VJG ů OQU WPRCKF OCPCIGOGPV HGGU CPF NKEGPUG TQ[CNV[ HGG VQ &5)+. 6JG UCKF HGGU YGTG RCKF OQPVJN[ YKVJQWV ETGFKV VGTO CPF TGKODWTUGOGPV GZRGPUGU
6JG %QORCP[ UQNF DCD[ FKCRGTU CPF RCEMKPI OCVGTKCN VQ &5)+.
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
6JG UCKF VTCPUCEVKQP YCU TGCUQPCDNG CPF Aging EQPUKFGTGF CU C PQTOCN VTCPUCEVKQP 5KPEG KV %WTTGPV KU KPVGTGUV HTGG VTCPUCEVKQP KV YQWNF EQPUKFGT ů OQU CU VJG HKPCPEKCN CUUKUVCPV HTQO &5)+. VJG OQU RCTGPV EQORCP[
6JG UCKF VTCPUCEVKQP YCU C PQTOCN VTCFG VTCPUCEVKQP YKVJ VJG RTKEKPI RQNKE[ D[ VJG OGVJQF QH EQUV RNWU OCTIKPCN RTQHKV VJG PGV RTKEGU YGTG EQORCTCDNG VQ RTKEGU QVJGTYKUG QDVCKPCDNG HTQO VJKTF RCTVKGU
55
Related Transactions
Company / Nature of Business / Relationship
Characteristics of transactions &5)+. KU VTCFG FGDVQT QH VJG %QORCP[ CTQUG HTQO FKCRGTU UCNG VTCPUCEVKQPU
Value of transactions (million Baht) Audited Audited
Opinion of the Audit Committee/ Necessity and reasonableness
31 December 11 31 December 12 6JG UCKF VTCPUCEVKQP YCU TGCUQPCDNG CPF Aging EQPUKFGTGF CU C PQTOCN VTCPUCEVKQP %WTTGPV ĹŻ OQU
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Ă &5).Ă&#x201A; VTCPUCEVKQP YKVJ VJG RTKEKPI RQNKE[ D[ VJG FKCRGTU VQ &5). - /CPWHCEVWTKPI CPF OGVJQF QH EQUV RNWU OCTIKPCN RTQHKV VJG PGV FKUVTKDWVKPI FKCRGT RTKEGU YGTG EQORCTCDNG VQ RTKEGU QVJGTYKUG RTQFWEVU KP *- QDVCKPCDNG HTQO VJKTF RCTVKGU - 4GIKUVGTGF KP * 6JG UCKF VTCPUCEVKQP YCU TGCUQPCDNG CPF &5). KU VTCFG FGDVQT - *GCF 1HHKEG KP *Aging QH VJG %QORCP[ CTQUG Aging EQPUKFGTGF CU C PQTOCN VTCPUCEVKQP - &5)+. YJQ KU C OCLQT %WTTGPV %WTTGPV HTQO FKCRGTU UCNG UJCTGJQNFGT QH VJG VTCPUCEVKQPU %QORCP[ JQNFU RGTEGPV QH UJCTGU KP &5). 6JG UCKF VTCPUCEVKQP YCU EQPUKFGTGF CU &5). KU QVJGT FGDVQT Aging QH VJG %QORCP[ CTQUG Aging C PQTOCN VTCPUCEVKQP HTQO QVJGT GZRGPUGU %WTTenV %WTTGPV EJCTIG DCEM HTQO VJG %QORCP[ 6JG UCKF VTCPUCEVKQP YCU EQPUKFGTGF CU &5). KU QVJGT ETGFKVQT Aging QH VJG &5)/5$ CTQUG Aging C PQTOCN VTCPUCEVKQP HTQO QVJGT GZRGPUGU OQU 1XGT [T EJCTIG DCEM HTQO &5).
ANNUAL REPORT 2012
56
Related Transactions
Company / Nature of Business / Relationship
Characteristics of transactions
&KURQUCDNG 5QHV )QQFU 7- 26&5) RC[U VJG 6TCFGOCTM 4Q[CNV[ 2NE Ă &5)7-Ă&#x201A; (GGU VQ &5)7- - /CPWHCEVWTKPI CPF FKUVTKDWVKPI FKCRGT RTQFWEVU FQOGUVKE CPF GZRQTV VQ 'WTQRG - 4GIKUVGTGF KP 7- *GCF 1HHKEG KP 7- &5)+. YJQ KU C OCLQT UJCTGJQNFGT QH VJG %QORCP[ JQNFU RGTEGPV UJCTG KP &5)7-
Value of transactions (million Baht) Audited Audited
Opinion of the Audit Committee/ Necessity and reasonableness
31 December 11 31 December 12 6JG UCKF VTCPUCEVKQP YCU TGCUQPCDNG CPF YCU DGPGHKEKCN VQ VJG DWUKPGUU QRGTCVKQP QH 26&5) UKPEG VJG HGGU YCU RCKF VQ &5)7- VJG DGPGHKEKCT[ QH &5)+. VQ EQNNGEV VJG 4Q[CNV[ HGGU HQT VJG TKIJV VQ WUG VJG VTCFGOCTM WPFGT VJG 6TCFGOCTM .KEGPUG 4Q[CNV[ (GGU #ITGGOGPV
&5)7- KU VJG ETGFKVQT Aging QH 26&5) HTQO %WTTGPV VJG WPRCKF TQ[CNV[ HGGU OGPVKQPGF CDQXG ĹŻ OQU
6JG UCKF HGGU YGTG RCKF SWCTVGTN[ YKVJ FC[U ETGFKV VGTO
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
6JG HGGU CTG TGCUQPCDNG CPF CTG CV VJG UCOG TCVG VJCV &5)+. EJCTIGU VQ QVJGT EQORCPKGU
6JG UCKF VTCPUCEVKQP YCU TGCUQPCDNG CPF Aging EQPUKFGTGF CU C PQTOCN VTCPUCEVKQP %WTTGPV ĹŻ OQU OQU 6JG QWVUVCPFKPI DCNCPEG KPVGTGUV HTGG ECP DG EQPUKFGTGF CU C HKPCPEKCN UWRRQTV HTQO &5)+. YJQ VTCPUHGT VJG TKIJV VQ EQNNGEV VJG TQ[CNV[ HGG VQ &5)7-
57
Related Transactions
Company / Nature of Business / Relationship
Characteristics of transactions
Value of transactions (million Baht) Audited Audited
31 December 11 5JCPIJCK &5) /GIC6JKP 6JG %QORCP[ RWTEJCUG TCY %Q .VF Ă 5&5)/Ă&#x201A; OCVGTKCNU HTQO /CPWHCEVWTKPI CPF 5&5)/ FKUVTKDWVKPI TCY OCVGTKCN 4GIKUVGTGF KP %JKPC *GCF 1HHKEG KP %JKPC &5)+. YJKEJ KU VJG OCLQT UJCTGJQNFGT QH VJG 0KN 5&5)/ KU VTCFG %QORCP[ JQNFU RC[CDNG QH VJG RGTEGPV QH UJCTG KP 5JWK %QORCP[ .KPI *QNFKPI %Q .VF CPF 5JWK .KPI *QNFKPI %Q .VF JQNFU RGTEGPV &5)/ KU QVJGT ETGFKVQT QH UJCTG KP 5&5)/ QH VJG %QORCP[ CTQUG Aging %WTTGPV HTQO QVJGT GZRGPUG OQU TGKODWTUGOGPV
Opinion of the Audit Committee/ Necessity and reasonableness
31 December 12 6JKU VTCPUCEVKQP KU C PQTOCN VTCFG VTCPUCEVKQP 6JG TCY OCVGTKCN KU C RTQRTKGVCT[ RTQFWEV QH &5)
0KN
6JGTG KU PQ QWVUVCPFKPI DCNCPEG QH 6TCFG 2C[CDNG QH 5&5)/ UKPEG (; DGECWUG QH EJCPIKPI RC[OGPV VGTO VQ RC[KPI KP CFXCPEG
6JG UCKF VTCPUCEVKQP YCU EQPUKFGTGF CU Aging C PQTOCN VTCPUCEVKQP %WTTGPV OQU
ANNUAL REPORT 2012
58
Related Transactions
Company / Nature of Business / Relationship
Characteristics of transactions
&KURQUCDNG 5QHV )QQFU 6JG %QORCP[ UQNF DCD[ FKCRGTU VQ
<JQPIUJCP .VF Á&5)<Â &5)< /CPWHCEVWTKPI CPF FKUVTKDWVKPI FKCRGT RTQFWEVU KP %JKPC 4GIKUVGTGF KP %JKPC *GCF 1HHKEG KP %JKPC &5)+. YJKEJ KU VJG OCLQT &5)< KU VJG VTCFG UJCTGJQNFGT QH VJG FGDVQT QH VJG %QORCP[ %QORCP[ JQNFU CTQUG HTQO VJG UCNG RGTEGPV QH UJCTG KP QH HKPKUJGF IQQFU VQ &5)/IV CPF &5)/IV &5)< JQNFU RGTEGPV QH UJCTG &5)< KU QVJGT FGDVQT KP &5)< QH VJG %QORCP[ CPF &5)/5$ CTQUG HTQO QVJGT GZRGPUGU TGKODWTUGOGPV 6JG %QORCP[ RWTEJCUG TCY OCVGTKCN HQT OCEJKPGT[ VGUV TWP
Value of transactions (million Baht) Audited Audited
Opinion of the Audit Committee/ Necessity and reasonableness
31 December 11 31 December 12 6JG UCKF VTCPUCEVKQP KU C PQTOCN VTCFG VTCPUCEVKQP YKVJ VJG RTKEKPI RQNKE[ D[ VJG OGVJQF QH EQUV RNWU OCTIKPCN RTQHKV VJG PGV RTKEGU YGTG EQORCTCDNG VQ RTKEGU QVJGTYKUG QDVCKPCDNG HTQO VJKTF RCTVKGU
Aging %WTTGPV ů OQU
0KN
6JG UCKF VTCPUCEVKQP YCU TGCUQPCDNG CPF EQPUKFGTGF CU C PQTOCN VTCPUCEVKQP
6JG UCKF VTCPUCEVKQP YCU EQPUKFGTGF CU Aging Current C PQTOCN VTCPUCEVKQP OQU %WTTGPV 1XGT [T
6JKU VTCPUCEVKQP KU C PQTOCN VTCFG VTCPUCEVKQP
6JG UCKF VTCPUCEVKQP KU C PQTOCN VTCFG &5)< KU VJG VTCFG Aging ETGFKVQT QH VJG %QORCP[ Aging VTCPUCEVKQP CTQUG HTQO VJG RWTEJCUG %WTTGPV OQU QH OCVGTKCN HTQO &5)< ů OQU HQT OCEJKPGT[ VGUV TWP
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
59
Related Transactions
Company / Nature of Business / Relationship
Characteristics of transactions
0KPC +PFWUVTKGU %Q .VF 6JG %QORCP[ DQWIJV CDUQTDGPV
Á0+0#Â UJGGV RTQFWEVU EQNF /CPWHCEVWTKPI CPF TGHTGUJKPI VQYGNU CPF &KUVTKDWVKPI CDUQTDGPV UCPKVCT[ PCRMKPU HTQO UJGGV RTQFWEVU EQNF 0+0# 6JG %QORCP[ TGHTGUJKPI VQYGNU CPF KU FKUVTKDWVQTU HQT UCPKVCT[ PCRMKPU 0+0#¿U RTQFWEVU &5)6 KU VJG UQNG FKUVTKDWVQT HQT 0+0# 0+0# KU VJG VTCFG 4GIKUVGTGF KP 6JCKNCPF CEEQWPV RC[CDNG QH *GCF 1HHKEG KP 6JCKNCPF VJG %QORCP[
5WEJ EQORCP[ YCU TGNCVGF
0+0# IKXGU FC[U VJTQWIJ VJG %QORCP[¿U ETGFKV VGTO CFXKUQT FKTGEVQT YJQ KU UJCTGJQNFGT QH UWEJ TGNCVGF 0+0# KU VJG PQP VTCFG EQORCP[ 5WDUGSWGPVN[ &GDVQT QH VJG %QORCP[ UWEJ CFXKUQT FKTGEVQT QP RWTEJCUG FKUEQWPV TGUKIPGF HTQO VJG %QORCP[ TGVWTPGF VJGTGHQTG UWEJ EQORCP[ JCU PQ NQPIGT DGGP VJG TGNCVGF EQORCP[
Value of transactions (million Baht) Audited Audited
Opinion of the Audit Committee/ Necessity and reasonableness
31 December 11 31 December 12
6JG UCKF VTCPUCEVKQP YCU C PQTOCN VTCFKPI VTCPUCEVKQP YKVJ VJG RTKEKPI RQNKE[ DCUGF QP PGV TGVCKN RTKEG NGUU FKUVTKDWVQT OCTIKP
Aging %WTTGPV
6JG UCKF VTCPUCEVKQP YCU TGCUQPCDNG CPF YCU DGPGHKEKCN VQ VJG DWUKPGUU QRGTCVKQP QH VJG %QORCP[
6JG UCKF VTCPUCEVKQP YCU C PQTOCN VTCFG VTCPUCEVKQP
Aging %WTTGPV OQU
&5) 6GEJPQNQI[ *QNFKPI 6JG %QORCP[ &5)/5$ 6GEJPQNQI[ 6TCPUHGT CPF CPF &5)/#. RC[ .KOKVGF Á&5) 6'%Â NKEGPUGU HGG VQ &5) 6'% .KEGPUG (GG *QNFKPI EQORCP[ 4GIKUVGTGF KP *QPI -QPI *GCF 1HHKEG KP *QPI -QPI &5)+. YJKEJ KU VJG OCLQT UJCTGJQNFGT QH VJG %QORCP[ 6TCFGOCTM JQNFU RGTEGPV UJCTG KP .KEGPUG (GG &5) 6'%
6GEJPQNQI[ 6TCPUHGT CPF .KEGPUG (GG
6JG UCKF VTCPUCEVKQP YCU TGCUQPCDNG CPF YCU DGPGHKEKCN VQ VJG DWUKPGUU QRGTCVKQP QH VJG %QORCP[ CPF KVU UWDUKFKCTKGU VJG DGPGHKEKCT[ QH &5) 6'% VQ EQNNGEV VJG NKEGPUGU HGGU HQT VJG TKIJV VQ OCPWHCEVWTG WPFGT VJG NKEGPUG HGGU CITGGOGPV
6TCFGOCTM 6JG HGGU CTG TGCUQPCDNG CPF CTG CV VJG UCOG .KEGPUG (GG TCVG VJCV &5) 6'% EJCTIGU VQ QVJGT EQORCPKGU
6JG UCKF VTCPUCEVKQP YCU TGCUQPCDNG CPF &5) 6'% KU VJG ETGFKVQT Aging Aging QH VJG EQORCP[ EQPUKFGTGF CU C PQTOCN VTCPUCEVKQP &5)/5$ CPF &5)/#. %WTTGPV %WTTGPV HTQO VJG WPRCKF TQ[CNV[ HGGU OGPVKQPGF CDQXG
ANNUAL REPORT 2012
60 Management Discussion and Analysis MANAGEMENT RESPONSIBILITY FOR FINANCIAL REPORTING 9G DGNKGXG KP FQKPI YJCV KU TKIJV CU RGTVCKPKPI VQ QWT HKPCPEKCN TGRQTVKPI VJKU OGCPU JKIJ SWCNKV[ HKPCPEKCN TGRQTVKPI YKVJ CEEWTCE[ CPF VTCPURCTGPE[ /CPCIGOGPV KU TGURQPUKDNG HQT OCKPVCKPKPI CP GHHGEVKXG U[UVGO QH KPVGTPCN EQPVTQNU CPF GZEGNNGPV QRGTCVKQPU 6JG $QCTF QH &KTGEVQTU VJTQWIJ KVU #WFKV %QOOKVVGG RTQXKFGU QXGTUKIJV CPF JCU CNUQ GPICIGF &GNQKVVG 6QWEJG 6QJOCVUW ,CK[QU #WFKV %Q .VF VQ CWFKV QWT HKPCPEKCN UVCVGOGPVU QP YJKEJ VJG[ JCXG KUUWGF WPSWCNKHKGF QRKPKQP
MANAGEMENTâ&#x20AC;&#x2122;S DISCUSSION AND ANALYSIS 6JG /CPCIGOGPV¿U FKUEWUUKQP CPF CPCN[UKU YCU VQ RTQXKFG OQTG KPUKIJV CPF WPFGTUVCPFKPI QH VJG HKPCPEKCN TGUWNVU QH VJG &5)6 )TQWR
OVERVIEW &5)6 )TQWR KU C NGCFKPI FKURQUCDNG FKCRGTU EQORCP[ KP 5QWVJ 'CUV #UKC 9G HQEWU QP FGNKXGTKPI SWCNKV[ RTQFWEVU CV GHHKEKGPV EQUVU VQ UCVKUH[ VJG PGGFU QH QWT EWUVQOGTU CPF EQPUWOGTU 9G JCXG HCEKNKVKGU KP VJTGG OCLQT NQECVKQPU KP 5QWVJ 'CUV #UKC K G 6JCKNCPF /CNC[UKC CPF +PFQPGUKC YKVJ C UCNGU RTGUGPEG KP QXGT GKIJV EQWPVTKGU HTQO 5QWVJ 'CUV #UKC VQ VJG /KFFNG 'CUV CPF #HTKEC 9G CTG KP C JKIJN[ EQORGVKVKXG KPFWUVT[ COKFUV INQDCN TGIKQPCN CPF NQECN EQORGVKVQTU
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
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
61
Management Discussion and Analysis
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
INCOME TAX &5)6 CV %QORCP[ NGXGN KU GZGORVGF HTQO KPEQOG VCZ HQT VJG PGV RTQHKV WPFGT VJG $1+ RTKXKNGIG *QYGXGT FWTKPI VJG [GCT VJGTG YCU CP GZRKTGF $1+ %GTVKHKECVG KP YJKEJ OC[ ECWUG KPEQOG VCZ RC[OGPV HQT VJG [GCT #V )TQWR NGXGN VJG HKPCPEKCN UVCVGOGPV TGHNGEVU VCZ RC[OGPV QH VJG %QORCP[ CPF KVU UWDUKFKCTKGU
OTHER INFORMATION 1WT HKPCPEKCN UVCVGOGPVU YGTG RTGRCTGF WUKPI 6JCK )##2 CPF +(45 CU VJG DCUKU QH QWT CEEQWPVKPI RQNKEKGU 1WT )TQWR JCU CFQRVGF VJG PGY CPF TGXKUGF 6JCK (KPCPEKCN 4GRQTVKPI 5VCPFCTFU KUUWGF D[ VJG (GFGTCVKQP QH #EEQWPVKPI 2TQHGUUKQPU YJKEJ CTG GHHGEVKXG HQT VJG HKPCPEKCN UVCVGOGPVU HQT VJG CEEQWPVKPI RGTKQFU DGIKPPKPI QP QT CHVGT ,CPWCT[ QPYCTFU KP VJG RTGRCTCVKQP CPF RTGUGPVCVKQP QH VJGUG HKPCPEKCN UVCVGOGPVU
ANNUAL REPORT 2012
62 Report of Board of Directorsâ&#x20AC;&#x2122; Responsibilities for Financial Statements 6JG $QCTF QH &KTGEVQTU KU TGURQPUKDNG HQT VJG UGRCTCVG HKPCPEKCN UVCVGOGPVU CPF EQPUQNKFCVGF HKPCPEKCN UVCVGOGPVU QH VJG %QORCP[ CPF KVU UWDUKFKCTKGU KPENWFKPI VJG HKPCPEKCN KPHQTOCVKQP FKUENQUGF KP VJG %QORCP[¿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
Brandon Shui Ling Wang Chairman of the Board of Directors
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
63 Report from the Audit Committee +P VJG #WFKV %QOOKVVGG Á%QOOKVVGGÂ QH &5) +PVGTPCVKQPCN 6JCKNCPF 2WDNKE %QORCP[ .KOKVGF Á%QORCP[Â EQPUKUVU QH VJTGG KPFGRGPFGPV FKTGEVQTU YJQ CTG MPQYNGFIGCDNG CPF GZRGTKGPEGF KP HKPCPEG CPF QTICPK\CVKQP OCPCIGOGPV EJCKTGF D[ /T 5WMRQTP %JCVEJCXCNCRQPI YKVJ &T 8KUUPW 2QQOOKRCPKV CPF /T %JYCP &GT #NGZ -KPI CU OGODGTU 6JG %QOOKVVGG JGNF HQWT OGGVKPIU FWTKPI VJG [GCT HQT TGXKGYKPI CPF EQPUKFGTKPI VJG HQNNQYKPI DWUKPGUUGU 4GXKGY QH VJG %QORCP[¿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¿U HKPCPEKCN UVCVGOGPVU CPF )TQWR EQPUQNKFCVGF HKPCPEGU YKVJ 6JCK )GPGTCN #EEGRVGF #EEQWPVKPI 2TKPEKRNGU CPF CRRNKECDNG NCYU CPF TGIWNCVKQPU VJG KPFGRGPFGPV CWFKVQT¿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
MR. SUKPORN CHATCHAVALAPONG Chairman of the Audit Committee
ANNUAL REPORT 2012
64
DSG International (Thailand) Public Company Limited
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012 NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS AND REPORT OF THE INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
65 Report of the Independent Certi¿ed Public Accountants TO THE SHAREHOLDERS AND THE BOARD OF DIRECTORS DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED 9G JCXG CWFKVGF VJG EQPUQNKFCVGF HKPCPEKCN UVCVGOGPVU QH &5) +PVGTPCVKQPCN 6JCKNCPF 2WDNKE %QORCP[ .KOKVGF CPF KVU UWDUKFKCTKGU CPF VJG UGRCTCVG HKPCPEKCN UVCVGOGPVU QH &5) +PVGTPCVKQPCN 6JCKNCPF 2WDNKE %QORCP[ .KOKVGF YJKEJ EQORTKUG VJG EQPUQNKFCVGF CPF UGRCTCVG UVCVGOGPVU QH HKPCPEKCN RQUKVKQP CU CV &GEGODGT CPF VJG TGNCVGF EQPUQNKFCVGF CPF UGRCTCVG UVCVGOGPVU QH EQORTGJGPUKXG KPEQOG EJCPIGU KP UJCTGJQNFGTU¿ GSWKV[ CPF ECUJ HNQYU HQT VJG [GCT VJGP GPFGF CPF PQVGU EQORTKUKPI C UWOOCT[ QH UKIPKHKECPV CEEQWPVKPI RQNKEKGU CPF QVJGT GZRNCPCVQT[ KPHQTOCVKQP
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%GTVKHKGF 2WDNKE #EEQWPVCPV 6JCKNCPF 4GIKUVTCVKQP 0Q DELOITTE TOUCHE TOHMATSU JAIYOS AUDIT CO., LTD.
ANNUAL REPORT 2012
66 Financal Statements DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER 31, 2012 AND 2011 BAHT Notes
CONSOLIDATED FINANCIAL STATEMENTS 2012
ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Trade accounts receivables Other receivables Short-term loan to a subsidiary Inventories Tax refundable Other current assets Total Current Assets NON-CURRENT ASSETS Investments in subsidiaries Long-term loan to a subsidiary Leasehold rights Advance payments for purchases of fixed assets Property, plant and equipment Intangible assets Other non-current assets - Deposit for lease of warehouse - Other deposits Total Non-current Assets TOTAL ASSETS
4.1
2011
SEPARATE FINANCIAL STATEMENTS 2012
2011
83,631,918
235,459,652
39,789,804
171,313,710
5 and 22 22 22 6
1,864,453,640 33,219,256 788,777,872 32,282,591 54,640,459 2,857,005,736
1,331,855,832 15,948,986 1,172,176,113 20,936,219 29,728,467 2,806,105,269
1,486,345,945 26,808,827 427,138,380 14,280 18,151,547 1,998,248,783
1,041,613,559 15,206,699 46,809,542 720,549,800 115,108 15,095,411 2,010,703,829
7 and 22 22 8
216,705,390 68,119,719
219,346,998 163,326,596
240,821,039 133,785,244 72,743,745 63,267,867
240,821,039 31,550,500 75,326,363 143,692,620
9 10
2,391,620,740 22,614,300
1,039,710,101 21,917,190
1,427,896,746 12,982,617
859,803,904 14,458,652
29.2
45,881,686 12,568,058 2,757,509,893 5,614,515,629
45,881,686 12,175,692 1,502,358,263 4,308,463,532
45,881,686 6,526,978 2,003,905,922 4,002,154,705
45,881,686 7,055,646 1,418,590,410 3,429,294,239
Notes to the financial statements form an integral part of these statements
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
67
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION (CONTINUED) AS AT DECEMBER 31, 2012 AND 2011 BAHT Notes
CONSOLIDATED FINANCIAL STATEMENTS 2012
LIABILITIES AND SHAREHOLDERSâ&#x20AC;&#x2122; EQUITY CURRENT LIABILITIES Bank overdrafts and short-term borrowings from financial institutions Trade and other payables Current portion of obligation under finance lease agreements Current portion of long-term borrowings Current portion of other non-current liabilities Income tax payable Other current liabilities Total Current Liabilities NON-CURRENT LIABILITIES Obligation under finance lease agreements Long-term borrowings Employee benefit obligations Other non-current liabilities Total Non-current Liabilities TOTAL LIABILITIES
2011
SEPARATE FINANCIAL STATEMENTS 2012
2011
11 12 and 22
1,076,585,762 1,378,011,319
1,161,336,459 1,061,148,305
972,133,304 803,372,231
1,056,813,144 673,028,716
13 14 16
200,830 150,616,686 66,577,662 19,094,125 2,691,086,384
1,387,905 168,202,000 20,113,144 12,963,467 2,425,151,280
200,830 149,052,000 25,031,497 17,092,392 1,966,882,254
1,369,250 168,202,000 9,044,955 1,908,458,065
13 14 15 16
812,848,207 19,085,206 20,261,910 852,195,323 3,543,281,707
200,830 279,930,109 14,407,361 3,135,000 297,673,300 2,722,824,580
216,531,874 14,834,034 3,135,000 234,500,908 2,201,383,162
200,830 154,903,874 10,388,245 3,135,000 168,627,949 2,077,086,014
ANNUAL REPORT 2012
68 DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION (CONTINUED) AS AT DECEMBER 31, 2012 AND 2011 BAHT Notes
CONSOLIDATED FINANCIAL STATEMENTS 2012
LIABILITIES AND SHAREHOLDERS' EQUITY (CONTINUED) SHAREHOLDERS' EQUITY SHARE CAPITAL Authorized share capital 900,000,000 ordinary shares of Baht 1 each 600,000,000 ordinary shares of Baht 1 each Issued and paid-up share capital 899,999,991 ordinary shares of Baht 1 each 600,000,000 ordinary shares of Baht 1 each PREMIUM ON ORDINARY SHARES PREMIUM ON TREASURY SHARES RETAINED EARNINGS Appropriated Legal reserve Unappropriated OTHER COMPONENTS OF SHAREHOLDERS' EQUITY Exchange differences on translation of the financial statements of foreign subsidiaries Difference between the book value of investments and costs of acquisition TOTAL SHAREHOLDERS' EQUITY TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
2011
SEPARATE FINANCIAL STATEMENTS 2012
2011
18
900,000,000
900,000,000 600,000,000
899,999,991
899,999,991
173,974,474 71,594,089
600,000,000 173,974,474 71,594,089
173,974,474 71,594,089
600,000,000 173,974,474 71,594,089
90,000,000 903,683,609
50,842,090 755,568,065
90,000,000 565,202,989
50,842,090 455,797,572
(11,047,160)
(9,368,685)
(56,971,081) 2,071,233,922 5,614,515,629
(56,971,081) 1,585,638,952 4,308,463,532
17
19
7
600,000,000
Notes to the financial statements form an integral part of these statements
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
-
1,800,771,543 4,002,154,705
-
1,352,208,225 3,429,294,239
69 DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011 Notes
Revenue from sales Cost of sales Gross profit Insurance claims Dividend income Other income Selling expenses Administrative expenses Loss on flood Gain (loss) on exchange rate Finance costs Profit before income tax expenses Income tax expenses PROFIT FOR THE YEAR OTHER COMPREHENSIVE INCOME Exchange differences on translation of financial statements of foreign subsidiaries TOTAL COMPREHENSIVE INCOME FOR THE YEAR
6 21 and 22 22 and 23 22 6
28
CONSOLIDATED FINANCIAL STATEMENTS
SEPARATE FINANCIAL STATEMENTS
2012 6,708,726,699 (4,427,797,026) 2,280,929,673 182,177,565 37,686,411 (1,403,758,415) (343,185,625) 21,702,350 (54,553,960) 720,997,999 (80,724,545) 640,273,454
2011 5,741,483,054 (3,850,887,522) 1,890,595,532 33,319,108 (1,205,740,777) (289,174,230) (147,066,809) (7,956,293) (32,646,477) 241,330,054 (39,689,383) 201,640,671
(1,678,475)
12,137,249
638,594,979
213,777,920
601,563,327
126,812,757
640,273,454 640,273,454
201,640,671 201,640,671
601,563,327 601,563,327
126,812,757 126,812,757
638,594,979 638,594,979
213,777,920 213,777,920
601,563,327 601,563,327
126,812,757 126,812,757
PROFIT ATTRIBUTABLE TO Owners of the parent TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO Owners of the parent
CONSOLIDATED FINANCIAL STATEMENTS 2012 BASIC EARNINGS PER SHARE
BAHT
18
0.71
2011 “Restated” 0.22
2012 2011 4,043,410,744 3,346,807,343 (2,613,636,506) (2,165,321,445) 1,429,774,238 1,181,485,898 182,177,565 54,321,720 46,329,728 76,384,985 26,525,916 (871,328,688) (755,039,525) (215,845,150) (182,046,095) (147,066,809) 23,264,943 (13,415,697) (52,074,915) (29,960,659) 626,674,698 126,812,757 (25,111,371) 601,563,327 126,812,757
-
-
SEPARATE FINANCIAL STATEMENTS 2012 0.67
2011 “Restated” 0.14
Notes to the financial statements form an integral part of these statements
ANNUAL REPORT 2012
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
21 21 19
-
17 17
899,999,991
-
600,000,000 299,999,991 -
600,000,000
300,000,000 300,000,000 -
21 21 19
Issued and paid-up share capital
173,974,474
-
173,974,474 -
173,974,474
-
173,974,474 -
Premium on ordinary shares
Notes to the financial statements form an integral part of these statements
Beginning balances as at January 1, 2012 Ordinary share dividend Dividends paid Legal reserve Total comprehensive income for the year Ending balances as at December 31, 2012
Beginning balances as at January 1, 2011 Ordinary share dividend Dividends paid Legal reserve Total comprehensive income for the year Sales of treasury shares Treasury share reserve Ending balances as at December 31, 2011
Notes
71,594,089
-
71,594,089 -
71,594,089
14,255,081 -
57,339,008 -
Premium on treasury shares
90,000,000
-
50,842,090 39,157,910
50,842,090
-
36,691,530 14,150,560
-
-
-
-
(7,522,661)
7,522,661 -
903,683,609
640,273,454
755,568,065 (299,999,991) (153,000,009) (39,157,910)
755,568,065
201,640,671 7,522,661
992,555,293 (300,000,000) (132,000,000) (14,150,560)
(11,047,160)
(1,678,475)
(9,368,685) -
(9,368,685)
12,137,249 -
(21,505,934) -
Treasury shares
(56,971,081)
-
(56,971,081) -
(56,971,081)
-
-
-
-
-
7,522,661 -
(56,971,081) (7,522,661) -
Equity attributable to shareholders of the Parent Retained earnings Other components of shareholders’ equity Appropriated Unappropriated Other comprehensive income Legal Treasury Exchange Difference reserve share differences on between the reserve translation of book value the financial of investments statements of and costs of foreign acquisition subsidiaries
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011 CONSOLIDATED FINANCIAL STATEMENTS
Total shareholders' equity
1,585,638,952
213,777,920 21,777,742 -
2,071,233,922
638,594,979
2,071,233,922
638,594,979
1,585,638,952 1,585,638,952 (153,000,009) (153,000,009) -
1,585,638,952
213,777,920 21,777,742 -
1,482,083,290 1,482,083,290 (132,000,000) (132,000,000) -
Total attribution to shareholders of the Parent
BAHT
70
21 21 19
17 17
21 21 19
Notes to the financial statements form an integral part of these statements
Beginning balances as at January 1, 2012 Ordinary share dividend Dividends paid Legal reserve Total comprehensive income for the year Ending balances as at December 31, 2012
Ending balances as at December 31, 2011
Treasury share reserve
Beginning balances as at January 1, 2011 Ordinary share dividend Dividends paid Legal reserve Total comprehensive income for the year Sales of treasury shares
Notes
600,000,000 299,999,991 899,999,991
300,000,000 300,000,000 600,000,000
Issued and paid-up share capital
173,974,474 173,974,474
173,974,474 173,974,474
Premium on ordinary shares
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CHANGES IN SHAREHOLDERSâ&#x20AC;&#x2122; EQUITY FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011 SEPARATE FINANCIAL STATEMENTS
71,594,089 71,594,089
50,842,090 39,157,910 90,000,000
-
455,797,572 (299,999,991) (153,000,009) (39,157,910) 601,563,327 565,202,989
Retained earnings Appropriated Unappropriated Legal reserve Treasury share reserve 57,339,008 36,691,530 7,522,661 767,612,714 (300,000,000) (132,000,000) 14,150,560 (14,150,560) 126,812,757 14,255,081 (7,522,661) 7,522,661 71,594,089 50,842,090 455,797,572
Premium on treasury shares
-
(7,522,661) 7,522,661 -
Treasury shares
1,352,208,225 (153,000,009) 601,563,327 1,800,771,543
1,335,617,726 (132,000,000) 126,812,757 21,777,742 1,352,208,225
Total shareholders' equity
BAHT
71
ANNUAL REPORT 2012
72 DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011 BAHT Notes
CONSOLIDATED FINANCIAL STATEMENTS 2012
CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax expenses Adjustments Depreciation and amortization Loss (gain) on sales of fixed assets Doubtful debts (reversal) Employment benefits obligation expense Loss on decline in value of inventories (reversal) Loss on flood Unrealized (gain) loss on exchange rate Dividend income from subsidiaries Interest income Interest expenses Increase in trade accounts receivables (Increase) decrease in other receivables Decrease (increase) in inventories (Increase) decrease in tax refundable Increase in other current assets Increase in deposit for lease of warehouse (Increase) decrease in other deposits Increase in trade accounts payables (Decrease) increase in other payables Increase (decrease) in accrued expenses Increase (decrease) in other current liabilities Cash received (paid) from operations Interest received Cash paid for interest Cash paid for income tax Net cash provided by (used in) operating activities
29.2
2011
SEPARATE FINANCIAL STATEMENTS 2012
2011
720,997,999
241,330,054
626,674,698
126,812,757
134,750,660 294,550 (5,901,732) 5,079,329 3,646,708 (3,552,343) (2,770,934) 54,553,960 907,098,197 (531,469,543) (17,276,320) 379,751,533 (11,346,372) (25,012,820) (392,366) 143,574,045 (12,942,200) 40,589,406 9,570,641 882,144,201 2,770,934 (60,195,631) (17,586,866)
110,687,506 (5,663,096) 1,551,689 2,472,322 (1,127,571) 147,066,809 7,375,381 (1,559,833) 32,646,477 534,779,738 (145,430,101) 2,037,663 (571,890,464) (821,513) (8,729,542) (45,881,686) (1,687,525) 88,962,731 23,158,772 157,101,001 7,364,346 38,963,420 1,559,833 (31,548,176) (45,277,093)
103,868,723 (41,576,390) (6,415,446) 4,445,789 3,646,708 (3,858,414) (54,321,720) (6,307,880) 52,074,915 678,230,983 (445,153,512) (9,691,061) 289,764,712 (3,120,077) 528,669 48,618,712 (3,577,028) (14,695,876) 8,047,438 548,952,960 4,406,019 (52,024,998) (79,874)
81,102,008 (1,358,986) 2,591,770 3,109,028 (1,127,571) 147,066,809 1,053,357 (46,329,728) (4,783,876) 29,960,659 338,096,227 (144,862,151) 45,076,252 (455,380,635) 2,535,873 (1,437,530) (45,881,686) (1,731,299) 58,246,553 22,622,734 139,003,082 (38,182,562) (81,895,142) 3,353,143 (28,862,358) (181,503)
807,132,638
(36,302,016)
501,254,107
(107,585,860)
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
73 DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011 BAHT Notes
CASH FLOWS FROM INVESTING ACTIVITIES Dividend received from subsidiaries Cash payment for purchase of a subsidiary's ordinary shares Cash payments for long-term loan to subsidiaries Cash payment for purchases of fixed assets and intangible assets Cash payments in advance for purchases of fixed assets Cash payments for purchase of leasehold right Proceeds from sales of fixed assets Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in bank overdrafts and short-term borrowings from financial institutions Repayments of finance lease obligation Repayments of long-term borrowings from financial institutions Proceeds from long-term borrowings from financial institutions Proceeds from sales of treasury shares Dividends paid Net cash provided by (used in) financing activities Exchange differences on translation of the financial statements of foreign subsidiaries Net increase (decrease) in cash and cash equivalents Cash and cash equivalents as at January 1, Cash and cash equivalents as at December 31,
CONSOLIDATED FINANCIAL STATEMENTS
7
2012
2011
-
-
-
4.2
4.1
(45,195,000) -
SEPARATE FINANCIAL STATEMENTS 2012 54,321,720 -
2011 46,329,728 -
(4,439,838)
(30,385,000)
(1,186,456,006)
(260,515,740)
(430,522,685)
(194,621,773)
(67,418,666) 1,331,584 (1,252,543,088)
(163,326,596) (219,693,573) 6,451,447 (682,279,462)
(63,267,867) 1,264,977 (442,643,693)
(143,692,620) (75,972,017) 1,705,327 (396,636,355)
(78,242,770) (1,459,055)
686,485,700 (2,712,113)
(78,171,911) (1,440,400)
596,140,387 (2,689,200)
(177,852,000)
(107,790,000)
(177,852,000)
(107,790,000)
693,184,785 (153,000,009)
354,494,835 21,777,741 (132,000,000)
220,330,000 (153,000,009)
229,468,600 21,777,741 (132,000,000)
282,630,951
820,256,163
(190,134,320)
604,907,528
10,951,765 (151,827,734) 235,459,652 83,631,918
6,452,526 108,127,211 127,332,441 235,459,652
(131,523,906) 171,313,710 39,789,804
100,685,313 70,628,397 171,313,710
Notes to the financial statements form an integral part of these statements
ANNUAL REPORT 2012
74 DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED AND SUBSIDIARIES NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011 1.
THE COMPANY’S OPERATIONS AND GENERAL INFORMATION DSG International (Thailand) Public Company Limited (“the Company”) was incorporated as a limited company under Thai laws on May 20, 1994. The Company’s main businesses are to manufacture, sell and export disposable baby diapers and adult incontinent products. The registered head office is located at 11th Floor, Regent House Building, 183 Rajdamri Road, Lumpini, Pathumwan, Bangkok and the factory is located at 39 Moo 1 SIL Industrial Zone, Tumbol Bualoy, Amphur Nong Khae, Saraburi Province. The major shareholder is DSG International Limited which was registered in British Virgin Island. The Company converted the Company’s status to public company limited on December 16, 2004 and on August 9, 2006, the Stock Exchange of Thailand registered the Company’s ordinary shares as a listed security. The Company and its subsidiaries have extensive transactions and relationships with affiliated companies. Accordingly, the financial statements may not necessarily be indicative of the conditions that would have existed or the results of operations that would have occurred had the Company and its subsidiaries operated without such affiliations.
2.
BASIS FOR PREPARATION AND PRESENTATION OF THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS The consolidated and the separate financial statements are prepared in Thai Baht and are prepared in compliance with the Notification of the Department of Business Development dated September 28, 2011 regarding “The Brief Particulars in the Financial Statements B.E. 2554” and in accordance with the Regulation of the Stock Exchange of Thailand dated January 22, 2001, regarding the preparation and submission of financial statements and reports for the financial position and results of operations of the listed companies B.E. 2554, and in accordance with Thai Financial Reporting Standards and practices generally accepted in Thailand. For the convenience of readers, an English translation of the financial statements has been prepared from the Thai language statutory financial statements which are issued for domestic financial reporting purposes.
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
75 2.1
Basis for preparation of the consolidated financial statements The consolidated financial statements for the years ended December 31, 2012 and 2011 include the financial statements of the Company and its subsidiaries in which the Company has control or invested over 50% of their voting rights. These subsidiaries are detailed as follows: Company’s name
Disposable Soft Goods (Malaysia) Sdn Bhd DSG (Malaysia) Sdn Bhd PT DSG Surya Mas Indonesia Disposable Soft Goods (S) Pte Ltd.
Major business
Sell disposable baby diapers and adult incontinent products Manufacture and sell disposable baby diapers and adult incontinent products Manufacture and sell disposable baby diapers and adult incontinent products Sell disposable baby diapers and adult incontinent products
Country of incorporation
Number of shares As at December 31, 2012 and 2011
Percentage of shareholding As at December 31, 2012 and 2011
Malaysia
3,000,003
100
Malaysia
3,400,002
100
Indonesia
11,000
100
Singapore
1,500,000
100
Significant intercompany transactions between the Company and its subsidiaries have been eliminated from the consolidated financial statements. The consolidated financial statements for the years ended December 31, 2012 and 2011 have included the subsidiaries’ financial statements for the years ended December 31, 2012 and 2011, which were audited. 2.2
The Federation of Accounting Professions has issued the Notifications regarding the new and revised Thai Financial Reporting Standards (“TFRS”), as follows: 1)
The following Thai Accounting Standards, Thai Financial Reporting Standard, Thai Accounting Standards Interpretation and Guideline on Accounting which are effective on January 1, 2013: Thai Accounting Standards (TAS) TAS 12 TAS 20 TAS 21 (Revised 2009)
Income Taxes Accounting for Government Grants and Disclosure of Government Assistance The Effects of Changes in Foreign Exchange Rates
Thai Financial Reporting Standard (TFRS) TFRS 8 Operating Segments Thai Accounting Standards Interpretation (TSI) TSI 10 Government Assistance - No Specific Relation to Operating Activities TSI 21 Income Taxes - Recovery of Revalued Non-Depreciable Assets TSI 25 Income Taxes - Changes in the Tax Status of an Entity or its Shareholders
Guideline on Accounting Guideline on Accounting regarding Transferring and Accepting Transfer of Financial Assets
ANNUAL REPORT 2012
76 2)
The following TSI and TFRI which are effective on January 1, 2014: TSI TSI 29
Service Concession Arrangements : Disclosures
TFRI TFRI 4 TFRI 12 TFRI 13
Determining Whether an Arrangement Contains a Lease Service Concession Arrangements Customer Loyalty Programmes
The Company’s management will adopt the above TAS, TFRS, TSI, TFRI and Guideline on Accounting relevant to the Company and its subsidiaries in the preparation of the Company’s and its subsidiaries’ financial statements when they become effective. The Company’s management has assessed the effects of these TAS, TFRS, TSI, TFRI and Guideline on Accounting and believes that they will not have any significant impact on the financial statements for the period in which they are initially applied. This excludes TAS 12 “Income Taxes” for which the management is still evaluating the first-year impact on the Company’s and its subsidiaries’ financial statements, and has yet to reach a conclusion. 3.
SIGNIFICANT ACCOUNTING POLICIES The financial statements have been prepared under the historical cost basis except as disclosed in the accounting policies are as follows: 3.1
Cash and cash equivalents Cash and cash equivalents consist of cash on hand and all deposits at financial institutions with the original maturities of three months or less from the date of acquisition, excluding deposit at financial institutions used as collateral.
3.2
Trade and other receivables Trade and other receivables are stated at cost net of allowance for doubtful accounts. Allowance for doubtful accounts is provided at the estimated collection losses on receivables. Such estimate is based on the Company’s collection experiences and a review of the current status of each receivable.
3.3
Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined by weighted average method. Net realizable value is the estimate of the selling price in the ordinary course of business, less the estimated costs necessary to make sale. Allowance is made, where necessary, for obsolete and slow-moving inventories (if any).
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
77 3.4
Investments in subsidiaries Investments in subsidiaries are recorded using cost method in the separate financial statements. In case an impairment in value of investment has occurred, the resulting loss from impairment of investment is recognized in the statement of comprehensive income.
3.5
Leasehold right Leasehold right of the Company is stated at cost less accumulated amortization. Leasehold right amortization of the Company is calculated on straight-line method over the period of agreement (approximately 29 years and 5 months). Leasehold right amortization of DSG (Malaysia) Sdn Bhd is calculated on straight-line method over the period of agreement (approximately 83 years).
3.6
Property, plant and equipment Land is stated at cost. Plant and equipment are stated at cost less accumulated depreciation and allowance for impairment (if any). Depreciation is calculated on the straight-line method, based on the estimated useful lives of the assets as follows: Building Building improvements Machinery and equipment Furniture and fixture Motor vehicles
20 5 - 20 3 - 15 4 - 10 4-8
years years years years years
Dismantling, moving and renovating assets location cost which the Company obligates when receiving such asset. The Company recognizes them at the cost of assets and depreciates them. 3.7
Intangible assets Intangible assets consist of computer software and license fees. Computer software and license fees are presented at cost less accumulated amortization. Amortization is calculated on the straight-line method, based on the estimated useful lives or period of agreement of the assets as follows: License fees for technology transfer Computer software
5 years 3 - 5 years
(period of agreement)
ANNUAL REPORT 2012
78 3.8
Foreign currency transactions Transactions during the year denominated in foreign currencies are translated into Baht at the rates of exchange ruling on the transaction dates. Monetary assets and liabilities at the date of the statements of financial position denominated in foreign currencies are translated into Baht at the reference rates of the Bank of Thailand on that date. Gains and losses on exchange arising from the rate of settlements or translations are recognized as income or expense in the statement of comprehensive income. The translation of foreign financial statements of subsidiaries for the purpose of preparing the consolidated financial statements is determined using the following rates; a. Assets and liabilities are translated at the rate prevailing at the date of the statements of financial position. b. Shareholdersâ&#x20AC;&#x2122; equity is translated at the rate prevailing on the transaction dates. c. Revenues and expenses are translated at the average rate for the year. Exchange difference on translation of financial statements in foreign currencies is shown under others comprehensive income and included under other components of shareholdersâ&#x20AC;&#x2122; equity in the statements of financial position.
3.9
Financial instruments The Company and its subsidiaries entered into interest rate swap agreement and forward foreign exchange contracts in asset and liability management activities to control exposure to fluctuations in interest and foreign exchange rates. Further details of financial instruments are disclosed in Notes 14, 31 and 32. Income and expense from interest rate swap agreement are recognized as interest income or expense in the statements of comprehensive income. The Company records forward foreign exchange contracts, according to the forward rate at which a foreign currency asset and liability will be settled, as contracts receivable and payable on the statements of financial position. The premium (discount) on forward foreign exchange contracts is deferred by presenting as other current assets or other current liabilities on the statements of financial position and to be amortised over the period of the forward foreign exchange contracts.
3.10
Lease Operating lease Leases in which substantially all the risks and rewards of ownership of assets remain with the lessor are accounted for as operating lease. Rentals applicable to such operating leases are charged as an expense to the statement of comprehensive income on the straight-line basis over lease term. Finance lease Leases for equipment which substantially transfer all the risks and rewards of ownership to the lessee are classified as finance lease. Finance leases are capitalised at the inception of the lease at the lower of the fair value of the leased equipment or the present value of the minimum lease payments. The related finance cost is recognized by effective interest rate method over the term of contracts and charged to the statements of comprehensive income. The equipment acquired under finance leasing contracts is depreciated over the estimated useful lives of the equipment using the straight-line method.
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
79 3.11
Employee benefits 3.11.1
Post-employment benefit upon retirement Employee benefit obligations are the provision for benefit obligations for employees who are entitled to receive it upon retirement under the Thai Labor Protection Act. The obligations are assessed by an independent actuary and based on actuarial assumptions using Projected Unit Credit Method to determine the present value of cash flows of employee benefit to be paid in the future. Under this method, the determination is based on actuarial calculations which include the employeeâ&#x20AC;&#x2122;s salaries, turnover rate, mortality rate, years of service and other factors. Discount rate used in calculation of the post-employment benefits obligation is referred from the yield curve of government bond. Gains or losses from changes in estimate are recognized in the statements of comprehensive income for the period they incur. Expenses related to employee benefits are recognized in the statements of comprehensive income in order to allocate such costs throughout the service period.
3.11.2
Provident fund The contribution for employees under provident fund scheme is recorded as expenses when incurred.
3.12
Difference between the book value of investments and costs of acquisition This represents the difference between the book value of investments acquired and the costs of acquisition arising from restructuring of the shareholding structure of DSG group and arising from additional acquisition of a subsidiaryâ&#x20AC;&#x2122;s share and is presented under the shareholdersâ&#x20AC;&#x2122; equity heading in the consolidated statements of financial position.
3.13
Recognition of revenues and expenses Sales are recognized upon delivery of goods to customers for domestic sales and to a common carrier for export sales, and deducting discounts, purchase volume discount and goods returned. Dividend income from investments is recognized as income when dividend is declared. Other incomes are recognized on an accrual basis. Expenses are recognized on an accrual basis.
3.14
Income tax expense Income tax expense is based on tax paid and accrued for the current year.
3.15
Basic earnings per share Basic earnings per share are calculated by dividing net profit for the year by weighted average ordinary shares issued and paid-up during the year net of treasury shares. The Company does not have any common share equivalents to dilute the earnings per share. In case of ordinary share dividend issued during the year, the number of ordinary shares outstanding before the event is adjusted for the proportionate change in the number of ordinary shares outstanding as if the event had occurred at the beginning of the earliest period presented.
ANNUAL REPORT 2012
80 3.16
Use of management’s judgement The preparation of financial statements in conformity with Thai Financial Reporting standards also requires the Company’s management to exercise judgements in order to determine the accounting policies, estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Although these estimates are based on management’s reasonable consideration of current events, actual results may differ from these estimates.
4.
SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION 4.1
Cash and cash equivalents Cash and cash equivalents as at December 31, 2012 and 2011 consist of: CONSOLIDATED FINANCIAL STATEMENTS 2012 2011 Baht Baht Cash on hand Cash at banks - current and savings accounts
4.2
189,133 83,442,785 83,631,918
258,388 235,201,264 235,459,652
SEPARATE FINANCIAL STATEMENTS 2012 2011 Baht Baht 20,000 39,769,804 39,789,804
20,000 171,293,710 171,313,710
Liabilities incurred from acquisition of fixed and intangible assets
Liabilities incurred from acquisition of fixed and intangible assets as at January 1, Add Purchases of fixed and intangible assets Less Cash payments Cash payments for interest paid which is capitalized as fixed assets Advance payments for purchases of machine paid in the prior period Liabilities incurred from acquisition of fixed and intangible assets as at December 31, Liabilities incurred from acquisition of fixed and intangible assets as at December 31, are included in accounts as follows: - Fixed assets payables and intangible assets - Other non-current liability Total liabilities incurred from acquisition of fixed and intangible assets
CONSOLIDATED FINANCIAL STATEMENTS 2012 2011 Baht Baht
SEPARATE FINANCIAL STATEMENTS 2012 2011 Baht Baht
39,135,289 1,499,374,658 (1,186,456,006)
16,878,056 679,636,290 (430,522,685)
(6,789,890)
46,288,338 280,397,992 (260,515,740) -
-
1,345,504 237,189,626 (194,621,773) -
(162,625,543)
(27,035,301)
(143,692,620)
(27,035,301)
182,638,508
39,135,289
122,299,041
16,878,056
165,511,598 17,126,910
19,022,145 20,113,144
122,299,041 -
16,878,056 -
182,638,508
39,135,289
122,299,041
16,878,056
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
81 4.3
As at December 31, 2012 and 2011, the unused bank overdrafts, short-term and long-term loan facilities from financial institutions and credit line of bank guarantee are consist of: Unit: Million CONSOLIDATED FINANCIAL STATEMENTS 2012 2011 The unused bank overdrafts and short-term loan facilities from financial institutions - Baht currency - Malaysian Ringgit currency(1) - US Dollar currency(2)
1,737.87 19.12 0.32
993.19 3.08 0.20
The unused long-term loan facilities from financial institution - Malaysian Ringgit currency(1)
20.36
45
3.50
3.90
The unused credit facility of bank guarantee - Baht currency
5.
SEPARATE FINANCIAL STATEMENTS 2012 2011
1,737.87 -
993.19 -
-
-
3.50
3.90
(1)
As at March 31, 2011, the Company and Disposable Soft Goods (Malaysia) Sdn Bhd issued the letters of guarantee as collateral for credit facilities of DSG (Malaysia) Sdn Bhd, a subsidiary, in the amount of USD 20.76 million and 68.51 million Malaysian Ringgit, respectively.
(2)
As at August 16, 2011, the Company issued the letter of guarantee as collateral for credit facility of PT DSG Surya Mas Indonesia, a subsidiary, in the amount of USD 3 million. PT DSG Surya Mas Indonesia has pledged its certain land, buildings, machine and inventories as collateral in the amount of 35,360 million Indonesian Rupiah.
TRADE ACCOUNTS RECEIVABLE The outstanding balances of trade accounts receivable aged by the number of months are summarized as follows: CONSOLIDATED FINANCIAL STATEMENTS
As at December 31, 2012 Related Others Total companies Baht Baht Baht
As at December 31, 2011 Related Others Total companies Baht Baht Baht
Current Overdue Less than or up to 3 months Over 3 months up to 6 months Over 6 months up to 12 months Over 12 months Total Less Allowance for doubtful accounts Trade accounts receivable
12,675,506
1,411,303,899 1,423,979,405
39,027,948 1,084,190,794
722,462 13,397,968 13,397,968
439,899,260 440,621,722 1,712,225 1,712,225 558,956 558,956 13,323,495 13,323,495 1,866,797,835 1,880,195,803 (15,742,163) (15,742,163) 1,851,055,672 1,864,453,640
8,734,406 198,082,862 206,817,268 436,350 436,350 384,298 384,298 22,643,069 22,643,069 47,762,354 1,305,737,373 1,353,499,727 (21,643,895) (21,643,895) 47,762,354 1,284,093,478 1,331,855,832
1,123,218,742
ANNUAL REPORT 2012
82
6.
SEPARATE FINANCIAL STATEMENTS
As at December 31, 2012 Related Others Total companies Baht Baht Baht
As at December 31, 2011 Related Others Total companies Baht Baht Baht
Current Overdue Less than or up to 3 months Over 3 months up to 6 months Over 6 months up to 12 months Over 12 months Total Less Allowance for doubtful accounts Trade accounts receivable
65,645,379
80,793,386
977,932,484 1,043,577,863
10,446,889 383,658,879 394,105,768 50,141,288 7,947,610 1,071 7,948,681 9,003,666 16,818,940 558,956 17,377,896 26,156,296 23,288,737 13,320,905 36,609,642 124,147,555 1,375,472,295 1,499,619,850 166,094,636 (13,273,905) (13,273,905) 124,147,555 1,362,198,390 1,486,345,945 166,094,636
731,565,676
812,359,062
140,178,881 190,320,169 436,350 9,440,016 384,298 26,540,594 22,643,069 22,643,069 895,208,274 1,061,302,910 (19,689,351) (19,689,351) 875,518,923 1,041,613,559
INVENTORIES Inventories consist of: CONSOLIDATED FINANCIAL STATEMENTS As at As at December 31, December 31, 2012 2011 Baht Baht Raw materials Finished goods Spare parts and supplies Less Allowance for loss on decline in value of inventories Allowance for loss from flood Add Goods in transit Inventories
SEPARATE FINANCIAL STATEMENTS As at As at December 31, December 31, 2012 2011 Baht Baht
240,496,827 285,729,079 70,090,840 596,316,746
512,669,241 486,907,973 59,449,841 1,059,027,055
133,119,697 130,022,097 37,944,731 301,086,525
349,686,583 290,641,216 28,430,716 668,758,515
(3,913,193) 592,403,553 196,374,319 788,777,872
(266,485) (147,066,809) 911,693,761 260,482,352 1,172,176,113
(3,913,193) 297,173,332 129,965,048 427,138,380
(266,485) (147,066,809) 521,425,221 199,124,579 720,549,800
In October 2011, the Companyâ&#x20AC;&#x2122;s leased warehouses, which are located in Ayutthaya province, were affected from flooding. Raw materials and finished goods stored at such warehouses amounting to Baht 97.20 million and Baht 49.87 million, respectively, have been damaged by the flood. The Company recognized allowance for loss from flood of Baht 147.07 million as at December 31, 2011 and recognized loss in the statement of comprehensive income for the year ended December 31, 2011 with the same amount. In 2012, the Company destructed such raw materials and finished goods and reversed allowance for loss from flood. The Company received partial insurance claims from its insurance companies in 2012 in the amount of Baht 172.43 million and the insurance companies has confirmed the additional insurance claim in the amount of Baht 9.75 million which the Company anticipated to receive in 2013. The Company, therefore, recognized insurance claim in the amount of Baht 182.18 million in the statements of comprehensive income for the year ended December 31, 2012.
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
83 Costs of inventories of the Company and its subsidiaries recognized as expenses in the consolidated financial statements for the years ended December 31, 2012 and 2011 are Baht 4,424.15 million and Baht 3,852.01 million, respectively. Costs of inventories of the Company recognized as expenses in the separate financial statements for the years ended December 31, 2012 and 2011 are Baht 2,609.99 million and Baht 2,166.45 million, respectively. For the year ended December 31, 2012, costs of inventories of the Company and its subsidiaries recognized as expenses in the consolidated financial statements include allowance for loss on decline in value of inventories of Baht 3.65 million. For the year ended December 31, 2011, costs of inventories of the Company and its subsidiaries recognized as expenses in the consolidated financial statements includes reversal of allowance for loss on decline in value of inventories of Baht 1.13 million. For the year ended December 31, 2012, costs of inventories of the Company recognized as expenses in the separate financial statements include allowance for loss on decline in value of inventories of Baht 3.65 million. For the year ended December 31, 2011, costs of inventories of the Company recognized as expenses in the separate financial statements includes reversal of allowance for loss on decline in value of inventories of Baht 1.13 million. 7.
INVESTMENTS IN SUBSIDIARIES Investments in subsidiaries consist of: Companyâ&#x20AC;&#x2122;s name
Major business
Disposable Soft Goods (Malaysia) Sell disposable baby diapers Sdn Bhd and adult incontinent products DSG (Malaysia) Sdn Bhd Manufacture and sell disposable baby diapers and adult incontinent products PT DSG Surya Mas Indonesia Manufacture and sell disposable baby diapers and adult incontinent products Disposable Soft Goods (S) Pte Ltd. Sell disposable baby diapers and adult incontinent products Total
Country of % of Difference between Separate incorporation shareholding the book value financial statements of investments At cost and costs of As at acquisition December 31, 2012 and 2011 Malaysia
100
9,287,656
4,826,517
Malaysia
100
1,638,489
73,968,141
Indonesia
100
(62,549,931)
148,006,122
Singapore
100
(5,347,295) (56,971,081)
14,020,259 240,821,039
ANNUAL REPORT 2012
84 Difference between the book value of investments and costs of acquisition represents the difference between the book value of investments acquired and the costs of acquisition arising from restructuring of the shareholding structure of DSG group in December 2004 and arising from additional acquisition of PT DSG Surga Mas Indonesia’s shares in December 2010 and is presented under the shareholders’ equity heading in the consolidated statement of financial position. PT DSG Surya Mas Indonesia On November 24, 2010, the Company entered into the share purchase agreement to purchase 4,400 shares of PT DSG Surya Mas Indonesia from another shareholder (“the Seller”) at the price of USD 2.5 million. Under the share purchase agreement, on December 2, 2010, the Company made a payment of USD 1 million or equivalent to Baht 30,350,000 to the Seller. Additionally, the Company made another payment of USD 1.5 million when the Seller completes the conditions as stated in the agreement, for instances, fully payments of outstanding receivable of PT Panca Talenta Mas to PT DSG Surya Mas Indonesia and the share transfer registration. In December 2010, the Company transferred USD 1.5 million to PT DSG Surya Mas Indonesia in order to have such subsidiary to make the payment on behalf when the Seller completes the remaining conditions. In April 2011, the Seller completed those remaining conditions, therefore, such subsidiary made the payment of USD 1.5 million (equivalent to Baht 45,195,000) to the Seller on April 25, 2011. PT DSG Surya Mas Indonesia has retained deficit as at December 31, 2012 and 2011 of Baht 104.58 million and Baht 69.25 million, respectively. This is an indicator of impairment of investment in such subsidiary. However, in 2011, the management of the Company restructured the operation of subsidiary. After the restructuring, the operation of such subsidiary is in line with the anticipated business plan which such subsidiary’s revenue has significantly increased (see Note 25) and there will be a new product launched in 2013 that is estimated to increase sales continuously. Therefore, no allowance for impairment has been provided for investment in such subsidiary. Disposable Soft Goods (S) Pte. Ltd. Disposable Soft Goods (S) Pte Ltd. has retained deficit as at December 31, 2012 and 2011 of Baht 21.89 million and Baht 27.97 million, respectively. This is an indicator of impairment of investment in such subsidiary. However, the management of the Company has changed the operation structure in 2010. After restructuring the operation, such subsidiary starts generating the profit. For the years ended December 31, 2012 and 2011, such subsidiary has the profit of Baht 6.08 million and Baht 5.76 million, respectively. Therefore, no allowance for impairment has been provided for investment in such subsidiary.
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
85 8.
LEASEHOLD RIGHTS Leasehold rights consists of: As at December 31, 2012 Balance as at December 31, 2011
Additions
Baht
Baht
Cost: Leasehold right - Land Leasehold right - Residence unit Total cost
144,020,635 75,972,017 219,992,652
Accumulated amortization: Leasehold right - Residence unit Total accumulated amortization Leasehold rights
(645,654) (645,654) 219,346,998
CONSOLIDATED FINANCIAL STATEMENTS Disposals Effect from Balance as at translation of December 31, the financial 2012 statements of foreign subsidiaries Baht Baht Baht
(2,582,618) (2,582,618)
-
(58,990) -
-
-
(58,990)
143,961,645 75,972,017 219,933,662 (3,228,272) (3,228,272) 216,705,390
As at December 31, 2011 Balance as at December 31,
CONSOLIDATED FINANCIAL STATEMENTS Additions Disposals Effect from Balance as at translation of December 31,
2010
the financial
2011
statements of foreign subsidiaries Baht
Baht
Baht
Baht
Baht
Cost: Leasehold right - Land Leasehold right - Residence unit Total cost
-
143,721,556 75,972,017 219,693,573
-
299,079 299,079
144,020,635 75,972,017 219,992,652
Accumulated amortization: Leasehold right - Residence unit Total accumulated amortization Leasehold rights
-
(645,654) (645,654)
-
-
(645,654) (645,654) 219,346,998
Amortization for the years 2012 2011
Baht Baht
2,582,618 645,654
ANNUAL REPORT 2012
86 As at December 31, 2012 Balance as at December 31, 2011 Baht Cost: Leasehold right - Residence unit Total cost
75,972,017 75,972,017
Accumulated amortization: Leasehold rights - Residence unit Total accumulated amortization Leasehold rights
(645,654) (645,654) 75,326,363
SEPARATE FINANCIAL STATEMENTS Additions Disposals Balance as at December 31, 2012 Baht Baht Baht (2,582,618) (2,582,618)
-
75,972,017 75,972,017
-
(3,228,272) (3,228,272) 72,743,745
As at December 31, 2011 Balance as at December 31, 2010 Baht
SEPARATE FINANCIAL STATEMENTS Additions Disposals Balance as at December 31, 2011 Baht
Baht
Baht
Cost: Leasehold right - Residence unit Total cost
-
75,972,017 75,972,017
-
75,972,017 75,972,017
Accumulated amortization: Leasehold right - Residence unit Total accumulated amortization Leasehold rights
-
(645,654) (645,654)
-
(645,654) (645,654) 75,326,363
Amortization for the years 2012 2011
Baht Baht
2,582,618 645,654
On July 20, 2011, the Company entered into the sub-lease agreement of the Residence unit for the corporate use purposes with a company. The total price of such residence is Baht 83.03 million which consists of Baht 75.97 million for the lease and Baht 7.06 million for the furnished decoration and equipment. The lease term lasts until February 28, 2041. Under the sub-lease agreement, the Company has to pay the maintenance fee of Baht 39,005 per month. The Company has pledged leasehold right as collateral for the loan from bank (see Note 14).
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
87 DSG (Malaysia) Sdn Bhd In September 2011, DSG (Malaysia) Sdn Bhd entered into the long-term lease agreement of the land for the new plant. The total price of such land is 14,410,560 Malaysian Ringgit (equivalent to Baht 143,721,556). The lease term is 83 years until April 9, 2094. DSG (Malaysia) Sdn Bhd will amortize the leasehold right when land is ready to be used for the period of 83 years. DSG (Malaysia) Sdn Bhd has pledged leasehold land as collateral for the loan from bank (see Note 14).
9.
PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of: As at December 31, 2012 Balance as at December 31, 2011
Baht Cost: Land Building Building improvements Machinery and equipment Furniture and fixture Motor vehicles Total cost Accumulated depreciation: Building Building improvements Machinery and equipment Furniture and fixture Motor vehicles Total accumulated depreciation Building under construction and machine and equipment under installation Property, plant and equipment
38,124,698 191,134,786 21,420,074 1,391,614,660 55,263,031 19,378,977 1,716,936,226
CONSOLIDATED FINANCIAL STATEMENTS Additions Disposals Transfer in/ Effect from (out) translation of the financial statements of foreign subsidiaries Baht Baht Baht Baht 748,000 18,141,054 58,757,909 1,958,064 79,605,027
(73,050,950) (9,593,879) (2,472,021) (2,844,307) (654,085,290) (102,783,734) (32,320,610) (6,007,715) (15,284,298) (1,494,637) (777,213,169) (122,724,272) 99,987,044 1,409,575,634 1,039,710,101
90,008 (668,000) 3,771,581 (6,317,293) 669,261,401 (448,245) 213,944 (7,623,287) (15,056,825) 673,336,934 63,409 5,805,733 430,685 7,130,864 13,430,691 -
Balance as at December 31, 2012
Baht
(811,603) (1,747,835) (122,201) (6,641,210) (553,833) (203,477) (10,080,159)
37,313,095 190,224,959 42,542,508 2,106,675,467 56,432,961 11,552,213 2,444,741,203
1,170,809 12,841 5,729,893 560,845 188,852 7,663,240
(81,474,020) (5,240,078) (745,333,398) (37,336,795) (9,459,219) (878,843,510)
(673,336,934) (10,502,697)
825,723,047 2,391,620,740
-
ANNUAL REPORT 2012
88 As at December 31, 2011
Balance as at December 31, 2010
Baht Cost: Land Building Building improvements Machinery and equipment Furniture and fixture Motor vehicles Total cost Accumulated depreciation: Building Building improvements Machinery and equipment Furniture and fixture Motor vehicles Total accumulated depreciation Machine in transit and under test-run process Property, plant and equipment
37,688,711 191,406,843 15,173,978 1,219,345,510 42,860,657 27,768,985 1,534,244,684
CONSOLIDATED FINANCIAL STATEMENTS Additions Disposals Transfer in/ Effect from Balance as at (out) translation of December 31, the financial 2011 statements of foreign subsidiaries Baht Baht Baht Baht Baht 6,239,157 45,246,699 11,715,222 1,815,150 65,016,228
(1,268,482) (973,809) (86,511) (10,492,096) (12,820,898)
(63,705,246) (9,601,534) 859,307 (1,603,662) (866,876) (562,114,024) (83,834,596) 917,267 (26,857,448) (4,942,051) 86,317 (23,242,478) (1,948,519) 10,169,657 (677,522,858) (101,193,576) 12,032,548 14,245,520 870,967,346
200,331,508
Depreciation for the years 2012 2011
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
-
114,766,008 114,766,008
435,987 38,124,698 996,425 191,134,786 6,939 21,420,074 13,230,252 1,391,614,660 773,663 55,263,031 286,938 19,378,977 15,730,204 1,716,936,226
-
(603,477) (73,050,950) (1,483) (2,472,021) (9,053,937) (654,085,290) (607,428) (32,320,610) (262,958) (15,284,298) (10,529,283) (777,213,169)
(114,766,008)
176,024
99,987,044 1,039,710,101
Baht Baht
122,724,272 101,193,576
89 As at December 31, 2012 Balance as at December 31, 2011 Baht Cost: Land Building Building improvements Machinery and equipment Furniture and fixture Motor vehicles Total cost Accumulated depreciation: Building Building improvements Machinery and equipment Furniture and fixture Motor vehicles Total accumulated depreciation Building under construction and machine and equipment under installation Property, plant and equipment
SEPARATE FINANCIAL STATEMENTS Additions Disposals Transfer in/ (out) Baht
Baht
Baht
Balance as at December 31, 2012 Baht
748,000 17,843,360 53,130,575 353,218 72,075,153
(668,000) (108,388,760) (384,943) (7,623,287) (117,064,990)
3,861,589 658,143,023 213,944 662,218,556
30,000,000 174,430,311 42,290,993 1,549,628,106 32,437,019 7,907,283 1,836,693,712
(61,716,711) (8,730,213) (2,420,768) (1,932,662) (336,698,303) (79,198,057) (13,926,867) (5,487,903) (13,076,177) (913,523) (427,838,826) (96,262,358)
63,409 97,754,385 382,954 7,130,864 105,331,612
-
(70,446,924) (4,290,021) (318,141,975) (19,031,816) (6,858,836) (418,769,572)
68,177,737 604,013,425 859,803,904
-
(662,218,556)
30,000,000 173,682,311 21,254,044 946,743,268 32,254,800 15,530,570 1,219,464,993
9,972,606 1,427,896,746
ANNUAL REPORT 2012
90 As at December 31, 2011
Cost: Land Building Building improvements Machinery and equipment Furniture and fixture Motor vehicles Total cost Accumulated depreciation: Building Building improvements Machinery and equipment Furniture and fixture Motor vehicles Total accumulated depreciation Machine in transit and under test-run process Property, plant and equipment
Balance as at December 31, 2010 Baht
SEPARATE FINANCIAL STATEMENTS Additions Disposals Transfer in/ (out) Baht
30,000,000 173,682,311 15,014,887 794,053,335
6,239,157 38,667,474
20,723,639 19,758,839 1,053,233,011
11,531,161 56,437,792
(53,038,560) (8,678,151) (1,568,755) (852,013) (276,467,778) (60,331,729) (10,288,951) (3,637,916) (15,623,206) (1,358,801) (356,987,250) (74,858,610) 9,749,886 172,575,417 705,995,647
Depreciation for the years 2012 2011
Baht
Baht
(125,107) 114,147,566 (4,228,269) (4,353,376) 114,147,566 101,204 3,905,830 4,007,034 -
(114,147,566)
Baht Baht
Balance as at December 31, 2011 Baht 30,000,000 173,682,311 21,254,044 946,743,268 32,254,800 15,530,570 1,219,464,993 (61,716,711) (2,420,768) (336,698,303) (13,926,867) (13,076,177) (427,838,826) 68,177,737 859,803,904
96,262,358 74,858,610
In 2012, the borrowing costs of DSG (Malaysia) Sdn Bhd of Baht 6.79 million, are capitalized as costs of construction in progress in the consolidated financial statements. Costs of fixed assets which are fully depreciated and still in use of the Company and its subsidiaries as at December 31, 2012 and 2011 are approximately Baht 355.15 million and Baht 391.64 million, respectively (the Company : Baht 140.45 million and Baht 187.98 million, respectively). In October and November 2012, the Company sold 2 machines which their carrying amounts are Baht 5.49 million and Baht 4.71 million, receptively to DSG (Malaysia) Sdn Bhd and PT DSG Surya Mas Indonesia, subsidiaries of the Company, in the amount of Baht 28.08 million and Baht 28.87 million, respectively. Such selling prices are appraised by the independent appraiser. Both subsidiaries shall make payments by 2014 and 2017, respectively. Building under construction of DSG (Malaysia) Sdn Bhd has been pledged to secure credit facilities obtained from financial institution (see Note 14).
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
91 As at December 31, 2012 and 2011, the fixed assets under a finance lease agreement presented above consist of office equipment as follows: CONSOLIDATED FINANCIAL STATEMENTS 2012 2011 Baht Baht Costs of leased assets under finance lease agreement Less Accumulated depreciation Net carrying value
10.
2,237,800 (1,258,551) 979,249
7,062,166 (3,427,397) 3,634,769
SEPARATE FINANCIAL STATEMENTS 2012 2011 Baht Baht 2,237,800 (1,258,551) 979,249
6,937,800 (3,319,613) 3,618,187
INTANGIBLE ASSETS Intangible assets consist of: As at December 31, 2012
Balance as at December 31, 2011 Baht
CONSOLIDATED FINANCIAL STATEMENTS Additions Disposals Transfer Effect from in/ (out) translation of foreign subsidiaries Baht Baht Baht Baht
Balance as at December 31, 2012 Baht
Cost: Computer software License fees for technology transfer Total cost
33,427,492 7,271,711 40,699,203
4,787,929 4,787,929
-
4,063,120 4,063,120
(81,227) (2,980) (84,207)
42,197,314 7,268,731 49,466,045
Accumulated amortization: Computer software License fees for technology transfer Total accumulated amortization Computer software under installation Intangible assets
(13,353,814) (5,817,369) (19,171,183) 389,170 21,917,190
(7,978,312) (1,465,458) (9,443,770) 5,406,068
-
(4,063,120)
26,363 14,096 40,459 (9,369)
(21,305,763) (7,268,731) (28,574,494) 1,722,749 22,614,300
ANNUAL REPORT 2012
92 As at December 31, 2011
CONSOLIDATED FINANCIAL STATEMENTS Balance as at December 31, 2010
Additions
Disposals
Transfer in/(out) Baht
Effect from translation of foreign subsidiaries Baht
Balance as at December 31, 2011
Baht
Baht
Baht
Cost: Computer software License fees for technology transfer Total cost
9,449,367 7,084,713 16,534,080
7,549,508 7,549,508
-
16,304,986 16,304,986
123,631 186,998 310,629
33,427,492 7,271,711 40,699,203
Accumulated amortization: Computer software License fees for technology transfer Total accumulated amortization Computer software under installation Intangible assets
(5,868,825) (4,250,829) (10,119,654) 9,192,600 15,607,026
(7,396,955) (1,451,321) (8,848,276) 7,500,748
-
(16,304,986)
(88,034) (115,219) (203,253) 808
(13,353,814) (5,817,369) (19,171,183) 389,170 21,917,190
Baht Baht
9,443,770 8,848,276
Amortization for the years 2012 2011 As at December 31, 2012
cost: Computer software Total cost Accumulated amortization: Computer software Total accumulated amortization Computer software under installation Intangible assets
Balance as at December 31, 2011 Baht 22,754,937 22,754,937 (8,296,285) (8,296,285) 14,458,652
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
SEPARATE FINANCIAL STATEMENTS Additions Disposals Transfer in/(out) Baht 601,100 601,100
Baht -
Baht 2,755,970 2,755,970
(5,023,747) (5,023,747) 2,946,612
-
(2,755,970)
Baht
Balance as at December 31, 2012 Baht 26,112,007 26,112,007 (13,320,032) (13,320,032) 190,642 12,982,617
93 As at December 31, 2011
Cost: Computer software Total cost Accumulated amortization: Computer software Total accumulated amortization Computer software under installation Intangible assets
SEPARATE FINANCIAL STATEMENTS Balance as at December 31, 2010 Baht
Additions
Disposals
Transfer in/(out)
Balance as at December 31, 2011 Baht
Baht
Baht
Baht
5,385,920 5,385,920
6,518,417 6,518,417
-
10,850,600 10,850,600
22,754,937 22,754,937
(2,698,541) (5,597,744) (2,698,541) (5,597,744) 9,192,600 1,658,000 11,879,979
-
(10,850,600)
(8,296,285) (8,296,285) 14,458,652
Amortization for the years
2012 2011
Baht Baht
5,023,747 5,597,744
Costs of intangible assets which are fully amortized and still in use of the Company and its subsidiaries as at December 31, 2012 and 2011 are approximately Baht 5.02 million and Baht 1.76 million, respectively (the Company: Baht 4.61 million and Baht 1.74 million, respectively). 11.
BANK OVERDRAFTS AND SHORT-TERM BORROWINGS FROM FINANCIAL INSTITUTIONS Bank overdrafts and short-term borrowings from financial institutions consist of: CONSOLIDATED FINANCIAL STATEMENTS
Bank overdraft (1) Bank overdraft Bank overdraft(2) Bank overdraft Short-term loans from financial institutions - promissory note - promissory note - promissory note - packing credit - packing credit(2) - packing credit(2) - foreign currency loans (1)
Interest rate p.a. (%) 2012
2011
BLR + 1 BLR + 0.5 BLR - 5 Quoted by bank
BLR + 1 BLR + 0.5 -
Market rate Market rate Quoted by bank Quoted by bank BLR - 5.75 BLR - 6 Cost of Funds of Currency + 1
Market rate Market rate Quoted by bank Quoted by bank BLR - 5.75 Cost of Funds of Currency + 1
Unit : Million Baht Balance as at December 31, 2012 2011 4.64 3.64 3.01 6.82
6.90 40.04 -
250.00 600.00 122.13 35.83 31.87
100.00 570.00 8.82 386.81 10.35 -
18.65 1,076.59
38.42 1,161.34
ANNUAL REPORT 2012
94
SEPARATE FINANCIAL STATEMENTS
Short-term loans from financial institutions - promissory note - promissory note - packing credit
Interest rate p.a. (%) 2012
2011
Market rate Market rate Quoted by bank
Market rate Market rate Quoted by bank
2012
Unit : Million Baht Balance as at December 31, 2011
250.00 600.00 122.13 972.13
100.00 570.00 386.81 1,056.81
BLR - Base Lending Rate
12.
(1)
On October 7, 2010, DSG (Malaysia) Sdn Bhd entered into the banking facility agreement for the business operation, consisting of bank overdraft, importing credit and forward foreign exchange contract facilities, in the total amount of 30.5 million Malaysian Ringgit and the Company secured such facilities in the liability limit of 10.5 million Malaysian Ringgit.
(2)
On June 26, 2012, PT DSG Surya Mas Indonesia entered into the banking facility agreement for the business operation, consisting of bank overdraft and forward foreign exchange contract facilities, in the total amount of USD 4.5 million by pledging land, building, machineries, equipment, inventories and receivables of the total amount of IDR 45,360,000 of PT DSG Surya Mas Indonesia and the Company secured such facilities in the liability limit of USD 3 million.
TRADE AND OTHER PAYABLES Trade and other payables as at December 31, 2012 and 2011 consist of: Consolidated financial statements 2012 2011 Trade accounts payable Other payables Fixed asset payables Accrued expenses
679,188,056 57,307,445 165,511,598 476,004,220 1,378,011,319
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
540,031,598 67,655,989 19,022,145 434,438,573 1,061,148,305
Unit : Baht The Separate financial statements 2012 2011 369,120,388 53,868,473 122,299,041 258,084,329 803,372,231
325,767,799 57,480,596 16,878,056 272,902,265 673,028,716
95 13.
OBLIGATION UNDER FINANCE LEASE AGREEMENTS Obligation under finance lease agreements for office equipment consists of the following: CONSOLIDATED FINANCIAL STATEMENTS
Within 1 year 1 - 5 years Less Future finance charges
SEPARATE FINANCIAL STATEMENTS
Minimum future lease payments 2012 2011 Baht Baht 218,280 218,280 (17,450) 200,830
Minimum future lease payments 2012 Baht
Within 1 year 1 - 5 years Less Future finance charges
1,559,883 218,280 1,778,163 (189,428) 1,588,735
218,280 218,280 (17,450) 200,830
2011 Baht 1,541,228 218,280 1,759,508 (189,428) 1,570,080
Present value of minimum future lease payments 2012 2011 Baht Baht 200,830 200,830 200,830
1,387,905 200,830 1,588,735 1,588,735
Present value of minimum future lease payments 2012 2011 Baht Baht 200,830 200,830 200,830
1,369,250 200,830 1,570,080 1,570,080
ANNUAL REPORT 2012
96 14.
LONG-TERM BORROWINGS Long-term borrowings consist of:
Long-term borrowings from financial institutions - repayable from Sep 2010 - Dec 2012 on monthly basis of Baht 1.70 million - repayable from Sep 2010 - Oct 2014 on monthly basis of Baht 1.88 million - repayable from Oct 2010 - Sep 2012 on monthly basis of Baht 3.40 million (1) - repayable from Aug 2011 - July 2016 on monthly basis of Baht 3.35 million - repayable from Oct 2011 - Sep 2018 on monthly basis of Baht 0.69 million (2) - repayable from Jan 2012 - Dec. 2016 on monthly basis of Baht 2.50 million - repayable from Jun 2012 - Dec 2016 on monthly basis of Baht 4 million - repayable from Oct 2013 - Sep 2018 on monthly basis of 0.12 million Malaysian Ringgit and from Oct 2018 - Sep 2021 on monthly basis of 0.21 million Malaysian Ringgit (3) - repayable from Jan 2014 - Dec 2018 on monthly basis of 0.32 million Malaysian Ringgit and from Jan 2019 - Dec 2021 on monthly basis of 1.03 million Malaysian Ringgit Ringgit (3) - repayable from Jun 2014 - Dec 2018 on monthly basis of 0.16 million Malaysian Ringgit and from Jan 2019 - Dec 2021 on monthly basis of 0.21 million Malaysian Ringgit (3)
CONSOLIDATED FINANCIAL STATEMENTS Balances As at December 31, 2012 2011 Baht Baht
SEPARATE FINANCIAL STATEMENTS Balances As at December 31, 2012 2011 Baht Baht
Credit limit
Interest rate p.a. (%)
Baht 30 million
MLR-2
-
19,800,000
-
19,800,000
Baht 90 million
MLR-2
41,100,274
63,660,274
41,100,274
63,660,274
Baht 80 million
THBFIX+1.55 Six-month Fixed deposit Interest Rate + 2.35 Six-month Fixed deposit Interest Rate + 2.55
-
29,000,000
-
29,000,000
116,698,600
59,068,600
116,698,600
59,068,600
47,635,000
55,927,000
47,635,000
55,927,000
Baht 200 million
Baht 58 million
Baht 150 million
MLR-2 Six-month Fixed deposit Interest Rate + 2.35
41,650,000
24,350,000
41,650,000
24,350,000
118,500,000
71,300,000
118,500,000
71,300,000
12.51 million Malaysian Ringgit
BLR - 2.3
124,975,025
125,026,235
-
-
45 million Malaysian Ringgit
BLR - 2.3
449,550,449
-
-
-
22.70 million Malaysian Ringgit
BLR - 2.0
Baht 215 million
Repayment terms Within 1 year 1 - 5 years Total
23,355,545 963,464,893
448,132,109
365,583,874
323,105,874
150,616,686 812,848,207 963,464,893
168,202,000 279,930,109 448,132,109
149,052,000 216,531,874 365,583,874
168,202,000 154,903,874 323,105,874
(1)
On September 10, 2010, the Company entered into an interest rate swap agreement with a financial institution to swap interest at floating rate to fixed rate at 4.1% per annum. The term of the agreement was terminated on September 30, 2012. As at December 31, 2011, the interest rate swap contract has fair value asset of Baht 27,710.
(2)
On September 21, 2011, the Company entered into a long-term loan agreement with a financial institution to purchase leasehold right of the Residence unit by pledging leasehold right as collateral for the loan from bank (see Note 8).
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
97 (3)
DSG (Malaysia) Sdn Bhd, a subsidiary of the Company, entered into a long-term loan agreement with a financial institution to lease the land and construct a new plant. Such loan is guaranteed by the Company and Disposable Soft Goods (Malaysia) Sdn Bhd in the liability limit of USD 29.56 million and 96.21 million Malaysian Ringgit, respectively. DSG (Malaysia) Sdn Bhd has pledged leasehold land and building as collateral for the loan from bank (see Notes 8 and 9).
The loan agreements contain covenants related to various matters, such as the maintenance of debt to shareholderâ&#x20AC;&#x2122;s equity ratio and the maintenance of debt service coverage ratio. 15.
EMPLOYEE BENEFIT OBLIGATIONS The Company estimated employee benefit obligations which consist of post-employment benefits upon retirement under the Thai Labor Protection Act by using Projected Unit Credit Method based on actuarial assumptions. Amounts recognized in the statement of comprehensive income in respect of post-employment benefit obligations for the years ended December 31, 2012 and 2011 are as follows: Unit: Baht
CONSOLIDATED FINANCIAL STATEMENTS 2012 2011 Current service cost Interest cost
4,552,747 526,582
2,405,387 66,935
SEPARATE FINANCIAL STATEMENTS 2012 2011 4,066,528 379,561
2,781,463 327,565
Movements in the present value of post-employment benefit obligations for the years ended December 31, 2012 and 2011 are as follows: Unit: Baht CONSOLIDATED FINANCIAL STATEMENTS Beginning balance of present value of post-employment benefit obligations Current service cost Interest cost Effect from exchange on translation of the financial statements of a foreign subsidiary Ending balance of present value of post-employment benefit obligations
SEPARATE FINANCIAL STATEMENTS
2012
2011
2012
2011
14,407,361 4,552,747 526,582
11,835,553 2,405,387 66,935
10,388,245 4,066,528 379,261
7,279,217 2,781,463 327,565
(401,484)
99,486
-
-
19,085,206
14,407,361
14,834,034
10,388,245
For the year ended December 31, 2012, the actuarial loss is recognized in the consolidated and separate statements of comprehensive income in the amount of Baht 1.75 million and Baht 0.34 million, respectively. Such actuarial loss mainly resulted from the change in discount rate and mortality rate of the financial assumption.
ANNUAL REPORT 2012
98 The principle actuarial assumptions used to calculate post-employment benefit obligations as at December 31, 2012 and 2011 are as follows: As at December 31, 2012 DSG International (Thailand) Public Company Limited PT DSG Surya Mas Indonesia As at December 31, 2011 DSG International (Thailand) Public Company Limited PT DSG Surya Mas Indonesia
Discount rate
Expected rate of salary increase
Turnover rate
Retirement age
4.04% 7%
6% 5.25%
0 - 36% 0 - 1%
60 years 55 years
Discount rate
Expected rate of salary increase
Turnover rate
Retirement age
4.5% 9%
5% 9%
0 - 37% 0 - 1%
60 years 55 years
The subsidiaries in Malaysia and Singapore did not estimate post-employment benefit obligations since there is no regulation regarding such obligation in Malaysia and there is one staff in Singapore. 16.
OTHER NON-CURRENT LIABILITIES Other non-current liabilities consist of provision for dismantling, moving and renovating assets location cost and payable from the acquisition of machine in 2012 and 2009 of DSG (Malaysia) Sdn Bhd at the price of Baht 108.03 million (Yen 286.76 million) and Baht 102.09 million (Yen 277.28 million), respectively. Other non-current liabilities as at December 31, 2012 and 2011 are summarized as follows: Unit: Baht CONSOLIDATED FINANCIAL STATEMENTS Balances As at As at December 31, December 31, 2012 2011 Provision for dismantling, moving and renovating assets location cost Liability from the acquisition of machine (see Note 4.2) Less Current portion of other non-current liability
3,135,000 17,126,910 20,261,910 20,261,910
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
3,135,000 20,113,144 23,248,144 (20,113,144) 3,135,000
SEPARATE FINANCIAL STATEMENTS Balances As at As at December 31, December 31, 2012 2011 3,135,000 3,135,000 3,135,000
3,135,000 3,135,000 3,135,000
99 17.
TREASURY SHARES AND TREASURY SHARE RESERVE At the Board of Directors’ meeting No. 5/2008 held on September 19, 2008, the Board of Directors’ meeting passed a resolution to approve the 15 million treasury shares of the Company’s ordinary shares or equals to 5% of the total issued and paid-up ordinary share capital with the maximum amount of Baht 62 million. The buy-back period is to be started from October 8, 2008 to April 7, 2009. The objective of the treasury share is to manage the financial and surplus liquidity. The Notification of the Office of the Securities and Exchange Commission No. Gor. Lor. Tor. Chor. Sor. (Wor.) 2/2548 and the Notification of the Federation of Accounting Professions No. Sor. Sor. Wor. Bor. Chor. 016/2548, have a guideline for the public companies who buy back their own shares that the Company must have the outstanding balance of treasury shares not exceeding the retained earnings and are required to appropriate their retained earnings to the treasury share reserve equal to the amounts paid to acquire the shares. In 2008 and 2009, the Company had the treasury shares of 10,254,000 shares, which equal to 3.42% of total issued and paid-up share capital with the value approximately Baht 30.33 million and the Company had set aside the treasury share reserve of Baht 30.33 million in 2009. Subsequently, during the year 2010, the Company sold treasury shares of 7,711,100 shares, totalling Baht 80.15 million which had premium on treasury shares in the amount of Baht 57.34 million. The Company had reversed treasury share reserve in the amount of Baht 22.81 million. Subsequently, during the year 2011, the Company sold the remaining treasury shares of 2,542,900 shares, totalling Baht 21.78 million, which had premium on treasury shares in the amount of Baht 14.26 million and reversed remaining treasury share reserve in the amount of Baht 7.52 million. The Company had premium on sales of treasury shares in the amount of Baht 71.59 million.
18.
SHARE CAPITAL AND BASIC EARNINGS PER SHARE
On April 29, 2011, the General Annual Shareholders’ Meeting approved the distribution of the ordinary shares dividends by issuing new ordinary shares at the ratio of 1 existing share for 1 new share at Baht 1 per share (see Note 21) which causes the number of shares of the registered share capital to increase from 300 million ordinary shares to 600 million ordinary shares. On May 6, 2011, the Company registered the additional ordinary shares with the Ministry of Commerce. Subsequently, on September 20, 2012, the Extraordinary General Shareholders’ Meeting approved the distrbution of interim dividends from the net profit for the six-month period ended June 30, 2012 by distributing cash dividends of Baht 0.10 per share, of 600 million ordinary shares, totalling Baht 60 million, and approved the ordinary shares dividends of Baht 300 million by issuing new ordinary shares at the ratio of 2 existing shares for 1 new share at Baht 1 per share. In case where there is fraction of share less than 2 shares, the Company will pay such stock dividend in cash at Baht 0.50 per share instead. The Extraordinary General Shareholders’ Meeting also approved the registration of additional ordinary shares. Therefore, the ordinary shares of authorized share capital increase from 600 million shares to 900 million shares. On September 24, 2012, the Company had registered such additional ordinary shares with the Ministry of Commerce. On October 12, 2012, the Company has distributed the dividend by cash of Baht 60,000,009 and issued 299,999,991 ordinary shares dividend. As at December 31, 2012, the Company has 899,999,991 ordinary shares.
ANNUAL REPORT 2012
100 The ordinary shares dividends in 2012 resulted in the decrease in the basic earnings per share of the consolidated and separate financial statements for the year ended December 31, 2011 as follows:
CONSOLIDATED FINANCIAL STATEMENTS Previously Restated presented
Basic earnings per share
0.34
Unit: Baht per share SEPARATE FINANCIAL STATEMENTS Previously Restated presented
0.22
0.21
0.14
Weighted average number of ordinary shares after the share dividends is calculated as follows: Consolidated and separate financial statements For the years ended December 31, 2012 2011 “Restated” Shares Shares Number of ordinary shares as at January 1, Add Weighted average number of treasury shares sold during the year Weighted average number of ordinary shares
19.
899,999,991 899,999,991
892,371,291 6,625,710 898,997,001
LEGAL RESERVE Pursuant to Section 116 of the Public Limited Companies Act B.E. 2535, the Company is required to set aside as a legal reserve at least 5 percent of net profit after deducting accumulated deficit brought forward (if any) until the reserve is not less than 10 percent of the registered shares capital and the reserve is not available for distribution as dividends.
20.
CAPITAL MANAGEMENT The Company’s objectives when managing capital are: -
To safeguard the Company’s ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders.
-
To provide an adequate return to shareholders by pricing products in order to provide an appropriate benefit to the Company and according to the market situation.
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
101 The management sets strategies to support the Company’s business operations to be more efficiency, and better performances and stronger financial status, including setting dividend and capital management policies to maintain the optimal capital structure and cost of capital. 21.
DIVIDENDS DSG International (Thailand) Public Company Limited On April 29, 2011, the General Annual Shareholders’ Meeting approved the distribution of dividends from the net profit for the year ended December 31, 2010 by distributing cash dividends of Baht 0.12 per share, for 300 million ordinary shares, totalling Baht 36 million, and approved the ordinary share dividends of Baht 300 million by issuing new ordinary shares at the ratio of 1 existing share for 1 new share at Baht 1 per share. Such cash dividends and ordinary share dividends were distributed on May 20, 2011. The Company registered the capital increase with the Ministry of Commerce on May 6, 2011. On August 11, 2011, the Board of Directors’ Meeting of the Company approved the distribution of interim dividend of Baht 0.09 per share, for 600 million ordinary shares, totalling Baht 54 million which was paid on September 9, 2011. On November 11, 2011, Board of Director’s Meeting of the Company approved the distribution of interim dividend of Baht 0.07 per share, for 600 million ordinary shares, totalling Baht 42 million which was paid on December 9, 2011. On April 27, 2012, the General Annual Shareholders’ Meeting approved the distribution of dividends from the net profit for the year ended December 31, 2011 of Baht 0.08 per share, of 600 million ordinary shares, totalling Baht 48 million which was paid on May 25, 2012. On September 20, 2012, the Extraordinary General Shareholders’ Meeting approved the distribution of interim dividends from the net profit for the six-month period ended June 30, 2012 by distributing cash dividends of Baht 0.10 per share, for 600 million ordinary shares, totalling Baht 60 million, and approved the ordinary share dividends of Baht 300 million by issuing new ordinary shares at the ratio of 2 existing shares for 1 new share at Baht 1 per share. In case where there is fraction of share less than 2 shares, the Company will pay such share dividend in cash at Baht 0.50 per share instead. As such, cash dividends of Baht 60,000,009 and 299,999,991 ordinary shares were distributed to shareholders on October 12, 2012. On November 12, 2012, the Board of Director’s Meeting of the Company approved the distribution of interim dividend from the net profit for the period of July to September 2012 of Baht 0.05 per share, for 900 million ordinary shares, totalling Baht 45 million which was paid on December 11, 2012.
ANNUAL REPORT 2012
102 Subsidiaries The Board of Directors’ Meetings of the subsidiaries passed resolutions to distribute interim dividends to ordinary shareholders as follows: For the year ended December 31, 2012 Company’s name DSG (Malaysia) Sdn Bhd Disposable Soft Goods (Malaysia) Sdn Bhd
For the year ended December 31, 2011 Company’s name DSG (Malaysia) Sdn Bhd Disposable Soft Goods (Malaysia) Sdn Bhd
22.
Board of Directors’ meeting date
Dividend (Baht per share)
Amount Baht
Dividend payment date
9.26 7.61
31,484,267 22,837,453 54,321,720
September 26, 2012 September 26, 2012
Dividend (Baht per share)
Amount Baht
Dividend payment date
9.04 5.20
30,719,297 15,610,431 46,329,728
September 7, 2011 September 7, 2011
September 3, 2012 September 3, 2012
Board of Directors’ meeting date September 5, 2011 September 5, 2011
TRANSACTIONS WITH RELATED COMPANIES The Company and its subsidiaries’ businesses include transactions with its related companies. The relationship may be by shareholding or the companies may have the same group of shareholders or directors. Therefore, the financial statements reflect the effects of these transactions on the basis determined by the companies concerned and are in the ordinary course of business which the selling prices quoted for related parties have, generally, lower margin than margin for the third parties as the products will be resold to customers. Term of credit is varied among the related parties around 90 - 180 days which is approximately longer than that of the others.
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
103 22.1
Significant balances with the related companies are as follows: Relationship
Trade accounts receivables - related companies DSG International Limited Major shareholder Disposable Soft Goods Ltd. Subsidiary of major shareholder Disposable Soft Goods (Zhong Shan) Ltd. Disposable Soft Goods (Malaysia) Sdn Bhd DSG (Malaysia) Sdn Bhd Disposable Soft Goods (S) Pte Ltd PT DSG Surya Mas Indonesia
Subsidiary of major shareholder Subsidiary Subsidiary Subsidiary Subsidiary
Other receivables - related companies (presented as other receivables) Disposable Soft Goods Ltd. Subsidiary of major shareholder Disposable Soft Goods (Zhong Shan) Ltd. Subsidiary of major shareholder Disposable Soft Goods (Malaysia) Sdn Bhd Subsidiary DSG (Malaysia) Sdn Bhd Subsidiary PT DSG Surya Mas Indonesia Subsidiary Disposable Soft Goods (S) Pte Ltd Subsidiary (5) Related company Nina Manufacture Co., Ltd.
Unit : Baht CONSOLIDATED SEPARATE FINANCIAL STATEMENTS FINANCIAL STATEMENTS Balance As at As at As at As at December 31, December 31, December 31, December 31, 2012 2011 2012 2011 5,317,386
-
8,080,582 16,788,971 -
30,973,383 -
5,317,386
-
8,080,582
16,788,971
52,815,536
30,973,383 64,442,830
427,221 10,064,610 1,887,217 4,477,499 55,619,613 39,347,343 13,397,968 47,762,354 124,147,555 166,094,636
3,131
5,972
3,131
5,972
258,918 262,049
175,847 4,054,667 4,236,486
89,248 5,535,443 980,393 3,808,607 294,814 10,711,636
401,564 935,795 1,440,537 4,054,667 6,838,535
ANNUAL REPORT 2012
104
Relationship
Unit : Baht CONSOLIDATED SEPARATE FINANCIAL STATEMENTS FINANCIAL STATEMENTS Balance Balance As at As at As at As at December 31, December 31, December 31, December 31, 2012 2011 2012 2011
Loan to related companies
PT DSG Surya Mas Indonesia - Baht 46,809,542 at interest rate of 5.5% p.a., repayable within August 31, 2012 and in August 2012 the Company extended the repayment term to August 31, 2014 - USD 1 million at interest rate of 5.5% p.a., repayable within December 31, 2015 - USD 0.935 million at interest rate of 5.5% p.a., repayable within December 25, 2017 DSG (Malaysia) Sdn Bhd. - USD 0.918 million at interest rate of 5.5% p.a., repayable within December 25, 2014
Subsidiary
-
46,809,542
46,809,542
-
-
30,485,700
31,550,500
-
-
28,504,129
-
-
-
27,985,873 133,785,244 133,785,244
78,360,042 (46,809,542) 31,550,500
-
-
4,826,517 4,826,517 73,968,141 73,968,141 148,006,122 148,006,122 14,020,259 14,020,259 240,821,039 240,821,039
Subsidiary
Presented as short-term loan to a subsidiary Long-term loan to subsidiaries Investments in subsidiaries Disposable Soft Goods (Malaysia) Sdn Bhd DSG (Malaysia) Sdn Bhd PT DSG Surya Mas Indonesia Disposable Soft Goods (S) Pte Ltd
-
Subsidiary Subsidiary Subsidiary Subsidiary
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
105
Relationship
Trade accounts payables - related company Disposable Soft Goods (Zhong Shan) Ltd. Subsidiary of major shareholder Related company Nina Manufacture Co., Ltd.(5) Other payables - related companies DSG International Limited Disposable Soft Goods Ltd. DSG Technology Holdings Limited Disposable Soft Goods (UK) Plc Shanghai DSG Megathin Co., Ltd. Disposable Soft Goods (Malaysia) Sdn Bhd DSG (Malaysia) Sdn Bhd PT DSG Surya Mas Indonesia Disposable Soft Goods (S) Pte Ltd
Unit : Baht CONSOLIDATED SEPARATE FINANCIAL STATEMENTS FINANCIAL STATEMENTS Balance Balance As at As at As at As at December 31, December 31, December 31, December 31, 2012 2011 2012 2011
107,489 107,489
419,897 913,336 1,333,233
107,489 107,489
419,897 913,336 1,333,233
Major shareholder Subsidiary of major shareholder Subsidiary of major shareholder Subsidiary of major shareholder Subsidiary of major shareholder
13,478,632
11,307,667
5,767,676
4,670,912
18,636
18,947
8,857,702
7,028,170
6,816,305
1,731,694
908,978
-
-
149,917
214,431
149,917
196,625
Subsidiary Subsidiary Subsidiary Subsidiary
24,236,581
19,478,193
173,194 2,959,129 4,909,319 22,070 20,797,610
143,599 1,580,325 11,744,658
-
5,153,197
Other receivable and payable - related companies are non-interest bearing with repayment term around 90 - 180 days. On August 11, 2011, the Board of Directors’ meeting approved to extend the repayment term of the loan to PT DSG Surya Mas Indonesia in the amount of Baht 46,809,540 to August 31, 2012. Subsequently, on August 10, 2012, the Board of Directors’ meeting approved to extend the repayment term of such loan to August 31, 2014.
ANNUAL REPORT 2012
106 The movements in transactions with related companies incurred during the years 2012 and 2011 are as follows: CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2012
Other receivables - related companies DSG International Limited Disposable Soft Goods Ltd. Disposable Soft Goods (Zhong Shan) Ltd.
Other payables - related companies DSG International Limited Disposable Soft Goods Ltd. Disposable Soft Goods (Zhong Shan) Ltd. DSG Technology Holdings Limited Disposable Soft Goods (UK) Plc Shuiling Holding Co., Ltd.
Effect from Balance as at translation of December 31, the financial 2012 statements for foreign subsidiaries
Balance as at December 31, 2011
Additions
Repayment/ Receipt
Baht
Baht
Baht
Baht
(3,300) (9,172) (510,341) (522,813)
-
5,972 175,847 181,819
3,300 6,422 599,610 609,332
11,307,667 18,947 7,028,170 908,978 214,431 19,478,193
142,589,904 223,990 190,855 90,790,319 3,087,635 1,738,910 238,621,613
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
(140,617,088) (224,475) (190,855) (88,978,745) (2,543,865) (1,798,137) (234,353,165)
Baht
(91) (6,198) (6,289)
3,131 258,918 262,049
198,149 174 17,958 278,946 (5,287) 489,940
13,478,632 18,636 8,857,702 1,731,694 149,917 24,236,581
107 CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2011
Other receivables - related companies Disposable Soft Goods Ltd. Disposable Soft Goods (Zhong Shan) Ltd. Shanghai DSG Megathin Co., Ltd. Associated Hygienic Products, LLC Nina Manufacture Co., Ltd.(5)
Other payables - related companies DSG International Limited Disposable Soft Goods Ltd. DSG Technology Holdings Limited Disposable Soft Goods (UK) Plc Shanghai DSG Megathin Co., Ltd. Shuiling Holding Co., Ltd. PT Panca Talenta Mas(1)
Balance as at December 31, 2010
Additions
Repayment/ Receipt
Effect from translation of the financial statements for foreign subsidiaries
Balance as at December 31, 2011
Baht
Baht
Baht
Baht
Baht
4,662,809 4,662,809
7,933,359 6,679,036 4,721,359 1,807,000 468,151 624,836 2,522,819 24,756,560
5,972 197,843 471,566 345,900 5,820,077 6,841,358
(33,212) (471,566) (345,900) (6,428,219) (7,278,897)
11,216 11,216
5,972 175,847 4,054,667 4,236,486
117,805,142 (114,701,168) 524,071 (7,199,284) 76,783,937 (74,544,046) 3,068,257 (4,080,149) 377,396 (635,622) (624,836) (2,522,819) 198,558,803 (204,307,924)
270,334 15,124 66,920 113,870 4,506 470,754
11,307,667 18,947 7,028,170 908,978 214,431 19,478,193
ANNUAL REPORT 2012
108
SEPARATE FINANCIAL STATEMENTS For the year ended December 31, 2012
Other receivables - related companies DSG International Limited Disposable Soft Goods Ltd. Disposable Soft Goods (Zhong Shan) Ltd. Disposable Soft Goods (Malaysia) Sdn Bhd DSG (Malaysia) Sdn Bhd PT DSG Surya Mas Indonesia Disposable Soft Goods (S) Pte Ltd Loans to subsidiaries PT DSG Surya Mas Indonesia DSG (Malaysia) Sdn Bhd Other payables - related companies DSG International Limited DSG Technology Holdings Limited Disposable Soft Goods (Zhong Shan) Ltd. Shanghai DSG Megathin Co., Ltd. Disposable Soft Goods (Malaysia) Sdn Bhd DSG (Malaysia) Sdn Bhd PT DSG Surya Mas Indonesia Disposable Soft Goods (S) Pte Ltd
Balance as at December 31, 2011 Baht
Additions
Repayment/ Receipt
Baht
Baht
5,972 401,564 935,795 1,440,537 2,783,868
3,300 6,422 599,609 5,542,437 30,952,826 33,424,061 296,407 70,825,062
(3,300) (9,172) (510,341) (405,456) (30,897,811) (31,020,466) (62,846,546)
78,360,042 78,360,042
28,501,418 27,983,210 56,484,628
4,670,912 5,153,197 196,625 143,599 1,580,325 11,744,658
55,834,494 65,431,050 188,346 1,738,909 419,300 8,278,669 4,907,309 22,627 136,820,704
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
(54,737,730) (63,767,942) (188,346) (1,780,772) (386,620) (6,871,246) (127,732,656)
Gain/loss Balance as at on exchange December 31, rate 2012 Baht Baht -
-
(91) (20) (3,102) (10,417) (35,525) (1,593) (50,748)
3,131 89,248 5,535,443 980,393 3,808,607 294,814 10,711,636
(1,062,089) 2,663 (1,059,426)
105,799,371 27,985,873 133,785,244
(4,845) (3,085) (28,619) 2,010 (557) (35,096)
5,767,676 6,816,305 149,917 173,194 2,959,129 4,909,319 22,070 20,797,610
109
SEPARATE FINANCIAL STATEMENTS For the year ended December 31, 2011
Other receivables - related companies Disposable Soft Goods Ltd. Disposable Soft Goods (Zhong Shan) Ltd. Shanghai DSG Megathin Co., Ltd. Associated Hygienic Products, LLC Disposable Soft Goods (Malaysia) Sdn Bhd DSG (Malaysia) Sdn Bhd PT DSG Surya Mas Indonesia Nina Manufacture Co., Ltd. Loans to a subsidiary PT DSG Surya Mas Indonesia Other payables - related companies DSG International Limited Disposable Soft Goods Ltd. DSG Technology Holdings Limited Shanghai DSG Megathin Co., Ltd. Shuiling Holding Co., Ltd. Disposable Soft Goods (Malaysia) Sdn Bhd DSG (Malaysia) Sdn Bhd
Balance as at December 31, 2010 Baht
Additions
Repayment/ Receipt
Baht
Baht
124,235 216,806 45,625,263 4,662,809 50,629,113
5,972 33,212 471,566 345,900 3,972,048 4,212,647 4,861,121 5,820,077 19,722,543
(33,212) (471,566) (345,900) (3,695,033) (3,501,523) (49,055,651) (6,428,219) (63,531,104)
46,809,542
30,385,000
3,366,538 6,365,500 3,281,639 468,151 624,836 56,863 929,113 15,092,640
46,285,005 332,819 54,348,403 270,850 766,312 2,263,319 104,266,708
(44,980,631) (6,698,319) (52,476,845) (546,259) (624,836) (681,925) (1,634,322) (107,643,137)
Gain/loss on exchange rate Baht -
Balance as at December 31, 2011 Baht
314 7,865 9,804 17,983
5,972 401,564 935,795 1,440,537 4,054,667 6,838,535
1,165,500
78,360,042
3,883 2,349 22,215 28,447
4,670,912 5,153,197 196,625 143,599 1,580,325 11,744,658
ANNUAL REPORT 2012
110 22.2
Significant transactions with related companies for the years ended December 31, 2012 and 2011 consist of the following:
Revenue from sales DSG International Limited Disposable Soft Goods Ltd. Disposable Soft Goods (Zhong Shan) Ltd. Disposable Soft Goods (Malaysia) Sdn Bhd DSG (Malaysia) Sdn Bhd Disposable Soft Goods (S) Pte Ltd PT DSG Surya Mas Indonesia
Unit : Baht SEPARATE FINANCIAL STATEMENTS 2012 2011 Baht Baht
Relationship
Pricing policies
CONSOLIDATED FINANCIAL STATEMENTS 2012 2011 Baht Baht
Major shareholder Subsidiary of major shareholder Subsidiary of major shareholder
Cost plus margin
5,606,177
-
5,606,177
Cost plus margin
16,936,164
22,817,010
16,936,164
22,817,010
Cost plus margin
17,015,589
36,894,656
17,015,589
36,894,656
Subsidiary Subsidiary Subsidiary Subsidiary
Cost plus margin Cost plus margin Cost plus margin Cost plus margin
39,557,930
159,076,284 11,374,192 7,901,990 30,233,887 59,711,666 248,144,283
134,809,969 9,831,886 9,538,797 13,330,835 227,223,153
Purchases of raw materials and finished goods Related company Nina Manufacture Co., Ltd.(5)
-
Retail price less distributorâ&#x20AC;&#x2122;s margin
-
81,073,722
-
81,073,722
Cost plus margin
33,788,723
25,404,953
33,788,723
25,404,953
Cost plus margin
-
Cost plus margin
12,379 33,801,102
407,937 106,939,026
12,379 33,801,102
407,937 106,939,026
Cost of sales - Technology transfer and license fees Subsidiary of major 1% of net sales to shareholder third parties 35,460,485 DSG Technology Holdings Limited (2)
31,697,385
10,101,216
9,345,776
36,902,976
-
-
45,002,627
55,329,834
45,002,627
3,068,257 116,671,245
65,431,050
54,348,403
80,902,166
55,329,834
45,002,627
Shanghai DSG Megathin Co., Ltd. Subsidiary of major shareholder Shuiling Holding Co., Ltd. Subsidiary of major shareholder Disposable Soft Goods Subsidiary of major (Zhong Shan) Ltd. shareholder
- Trademark license fees DSG International Limited (3) DSG Technology Holdings Limited (3) Disposable Soft Goods (UK) Plc
(3)
Major shareholder 1.5% of net sales to third parties 42,540,387 Subsidiary of major 1.5% of net sales to shareholder third parties 55,329,834 Subsidiary of major 1.5 - 2.5% of net sales 3,087,635 Shareholder to third parties 136,418,341
52,414
-
52,414
Administrative expenses
- Management fee DSG International Limited (4)
Major shareholder
1 - 1.5% of net sales to third parties
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
100,049,517
111
Interest income DSG (Malaysia) Sdn Bhd PT DSG Surya Mas Indonesia
Relationship
Pricing policies
Subsidiary Subsidiary
5.5% p.a. 5.5% p.a.
CONSOLIDATED FINANCIAL STATEMENTS 2012 2011 Baht Baht
Unit : Baht SEPARATE FINANCIAL STATEMENTS 2012 2011 Baht Baht
-
-
29,516 4,317,341 4,346,857
-
-
22,585,372
-
Subsidiary
-
-
19,257,907 41,843,279
-
Other income DSG (Malaysia) Sdn Bhd Disposable Soft Goods (Malaysia) Sdn Bhd
Subsidiary Subsidiary
-
-
2,601,674 1,516,584 4,118,258
2,601,672 2,601,672
Dividend income DSG (Malaysia) Sdn Bhd Disposable Soft Goods (Malaysia) Sdn Bhd
Subsidiary Subsidiary
-
-
31,484,267 22,837,453 54,321,720
30,719,297 15,610,431 46,329,728
Dividend payments DSG International Limited
Major shareholder
95,645,395
86,771,080
95,645,395
86,771,080
Share Dividend payments DSG International Limited
Major shareholder
197,207,000
197,207,000
197,207,000
197,207,000
Management
38,284,762
35,206,106
26,930,000
24,181,240
Gain on disposal of fixed assets (see Note 9) DSG (Malaysia) Sdn Bhd (selling price of Baht 28.08 million) PT DSG Surya Mas Indonesia (selling price of Baht 28.87 million)
Management benefit expenses
4,099,857 4,099,857
Subsidiary
(1)
Such company was related through a company of the director who held 40% of subsidiaryâ&#x20AC;&#x2122;s share. Consequently, the Company purchased the 40% shares of such subsidiary and such director resigned on December 2, 2010, therefore, the Company was no longer been the related company.
(2)
The Company and its subsidiary entered into a technology transfer and license agreement for the periods of 20 years since October 1, 2008. Under the agreement, the Company and its subsidiary have to pay fees to DSG Technology Holdings Limited which was calculated at 1% of net sales price to third parties.
(3)
The Company and its subsidiaries entered into trademark license agreements with DSG Technology Holdings Limited, Disposable Soft Goods (UK) Plc and DSG International Limited. The Company and its subsidiaries paid license fee which was calculated at 1.5% of net sales to third parties since January 1, 2010, except PT DSG Surya Mas Indonesia who still has to pay the fee which was calculated at 3.5% of net sales to third parties and reduced to 2.5% of net sales to third parties since April 2007 until the period is subject to change.
(4)
The Company and its subsidiaries have entered into management agreements with DSG International Limited. The Company and its subsidiaries have to pay management fee which was calculated at 1% - 1.5% of net sales to third parties.
(5)
Such company was related through the advisor of the Companyâ&#x20AC;&#x2122;s board of director who is shareholder of such related company. Subsequently, such advisor to the Board of director resigned from the Company; therefore, such company was no longer been the related company.
ANNUAL REPORT 2012
112 23.
OTHER INCOME Other income for the years ended December 31, consist of the following: CONSOLIDATED FINANCIAL STATEMENTS 2012 2011 Baht Baht Interest income Net gain on disposal of fixed assets(1) Others
(1)
24.
2,770,934 34,915,477 37,686,411
SEPARATE FINANCIAL STATEMENTS 2012 2011 Baht Baht
1,566,797 5,669,608 26,082,703 33,319,108
6,307,880 41,576,390 28,500,715 76,384,985
4,783,876 1,358,986 20,383,054 26,525,916
In 2012, the Company has gain on disposal of 2 machines to DSG (Malaysia) Sdn Bhd and PT DSG Surya Mas Indonesia which are subsidiaries amounting to Baht 22.6 million and Baht 19.3 million, respectively, (after selling cost of Baht 4.85 million) by recognizing as profit from disposal of fixed assets in the statements of comprehensive income for the year ended December 31, 2012 amounting to Baht 41.9 million (see Note 9).
EXPENSES BY NATURE Expenses by nature for the years ended December 31, mainly consist of the following items as follows:
Changes of finished goods Raw materials used Employee benefits expenses Depreciation and amortization Loss on decline in value of inventories (reversal) Loss on flood Selling expense* Management remuneration
CONSOLIDATED FINANCIAL STATEMENTS 2012 2011 Baht Baht
SEPARATE FINANCIAL STATEMENTS 2012 2011 Baht Baht
201,178,894 3,350,304,442 417,848,363 134,750,660 3,646,708 1,232,970,142 38,284,762
160,413,310 1,917,649,401 204,434,623 103,868,723 3,646,708 816,125,445 26,930,000
* Exclude employee benefit expenses
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
(245,191,083) 3,364,487,923 346,670,402 110,687,506 (1,127,571) 147,066,809 1,060,931,739 35,206,106
(196,694,340) 1,972,440,617 155,686,216 81,102,008 (1,127,571) 147,066,809 700,916,466 24,181,240
113 25.
SEGMENT INFORMATION The Company and its subsidiaries have been engaged to manufacture, sell and export disposable baby diapers and adult incontinent products. All business activities of the Company and its subsidiaries shall be classified by segments of the Company and its subsidiaries, based on revenues and results of operations, for the years ended December 31, 2012 and 2011 and total assets as at December 31, 2012 and 2011, are as follows: Thailand
For the year ended December 31, 2012 Revenues from sales 4,043,410,744 Net profit (loss) 601,563,327
2,720,393,969 160,198,894
Thailand
Malaysia (1)
For the year ended December 31, 2011 Revenues from sales 3,346,807,343 Net profit (loss) 126,812,757
Consolidated total assets As at December 31, 2012 As at December 31, 2011 (1)
26.
Malaysia (1)
Thailand
2,358,851,381 132,535,406 Malaysia
(1)
4,002,154,705 1,827,552,332 3,429,294,239 1,158,302,503
Indonesia
Singapore
Elimination
Unit: Baht Total
269,164,142 99,267,896 (423,510,052) 6,708,726,699 (35,653,890) 6,076,601 (91,911,478) 640,273,454 Singapore
196,351,494 (15,941,641)
86,027,885 (246,555,049) 5,741,483,054 5,761,790 (47,527,641) 201,640,671
Indonesia 354,566,410 187,021,841
Singapore
Elimination
Unit: Baht Total
Indonesia
Elimination
Unit: Baht Total
28,141,208 (597,899,026) 5,614,515,629 24,274,279 (490,429,330) 4,308,463,532
Transactions and balances between DSG (Malaysia) Sdn Bhd and Disposable Soft Goods (Malaysia) Sdn Bhd were eliminated.
THE INVESTMENT PROMOTION RIGHTS AND PRIVILEGES On May 2, 2003, the Company received the investment promotion certificate No. 7003(2)/2546, which the Board of Investment approved the promotion for manufacturing of diapers by receiving the exemption from corporate income tax on profit derived from the promoted business which is not over 100% of its investment that excluded cost of land and working capital (approximately Baht 184 million) for the period of 7 years from the date income is first derived from the promoted business (on August 28, 2004). In 2011, such investment promotion certificate is expired for exemption of corporate income tax. On November 25, 2004, the Company received another investment promotion certificate No. 1041(2)/2548 which the Board of Investment approved the promotion for manufacturing of diapers by receiving the exemption from corporate income tax on profit derived from the promoted business which is not over 100% of its investment that excluded cost of land and working capital (approximately Baht 95.81 million) for the period of 7 years from the date income is first derived from the promoted businesses (on February 3, 2005). From the date that the Company commenced the promoted business to December 31, 2011, the Company fully utilised the income tax exemption in the amount of Baht 95.81 million. During the year 2012, this investment promotion certificate was terminated.
ANNUAL REPORT 2012
114 On July 16, 2008, the Company received another investment promotion certificate No. 1718(2)/2551 which the Board of Investment approved the promotion for manufacturing of diapers by receiving the exemption for corporate income tax on profit derived from the promoted business which is not over 100% of its investment that excluded cost of land and working capital (approximately Baht 253 million) for the period of 7 years from the date income is first derived from the promoted businesses (on March 25, 2009). From the date that the Company commenced the promoted business to December 31, 2011, the Company utilised the income tax exemption in the amount of Baht 71.41 million. On December 22, 2010, the Company received another investment promotion certificate No. 2411(2)/2553 which the Board of Investment approved the promotion for manufacturing of diapers by receiving the exemption for corporate income tax on profit derived from the promoted business which is not over 100% of its investment that excluded cost of land and working capital (approximately Baht 211 million) for the period of 7 years from the date income is first derived from the promoted businesses (on October 21, 2010). From the date that the Company commenced the promoted business to December 31, 2011, the Company utilised the income tax exemption in the amount of Baht 32.78 million. On August 8, 2011, the Company received another investment promotion certificate No. 1942(2)/2554 which the Board of Investment approved the promotion for manufacturing of diapers by receiving the exemption for corporate income tax on profit derived from the promoted business which is not over 100% of its investment that excluded cost of land and working capital (approximately Baht 393 million) for the period of 7 years from the date income is first derived from the promoted businesses (on May 30, 2011). On April 20, 2012, the Company received another investment promotion certificate No. 1497(2)/2555 which the Board of Investment approved the promotion for manufacturing of diapers by receiving the exemption for corporate income tax on profit derived from the promoted business which is not over 100% of its investment that excluded cost of land and working capital (approximately Baht 249.10 million) for the period of 7 years from the date income is first derived from the promoted businesses (on April 26, 2012). Subsequently on November 30, 2012, the Company received another investment promotion certificate No. 2767(2)/2555 which the Board of Investment approved the promotion for manufacturing of diapers by receiving the exemption for corporate income tax on profit derived from the promoted business which is not over 100% of its investment that excluded cost of land and working capital (approximately Baht 295.88 million) for the period of 7 years from the date income is first derived from the promoted businesses (on November 11, 2012). Shareholders of the Company will receive exemption from tax on dividends received during the period in which the Company is granted exemption from corporate income tax. The Company has to comply with certain conditions contained in the promotion certificates.
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
115 27.
REVENUE REPORTING OF A PROMOTED INDUSTRY Based on the Announcement of Board of the Investment No. Por. 14/2541 dated December 30, 1998 regarding revenue reporting of a promoted industry, the Company is required to report the revenue from domestic sales and export sales separately and to report separately between the promoted and non-promoted sectors for the years ended December 31, 2012 and 2011 as follows: SEPARATE FINANCIAL STATEMENTS Revenues Revenue from export sales Revenue from domestic sales Total revenues from sales
28.
Promoted Business 2012 2011 Baht Baht
Non- promoted Business 2012 2011 Baht Baht
Total 2012 Baht
2011 Baht
167,610,271 230,190,428 90,645,528 491,753 258,255,799 230,682,181 3,093,032,081 2,977,797,787 692,122,864 138,327,375 3,785,154,945 3,116,125,162 3,260,642,352 3,207,988,215 782,768,392 138,819,128 4,043,410,744 3,346,807,343
INCOME TAX EXPENSES For the year ended December 31, 2011, the separate statement of comprehensive income presented net profit but no corporate income tax expense was estimated because the Company received the corporate income tax exemption for promoted business. For the non-promoted business or the promoted-business that the corporate income tax exemption was expired, the Company had tax losses brought forward from prior years which were used as taxable expenses in the income tax calculation. For the year ended December 31, 2012, the separate statement of comprehensive income presented income tax expense because corporate income tax exemption for promoted business of certain certificates had been expired and tax losses brought forward were already fully utilized. Royal Decree Issued under Revenue Code Governing Reduction of Rates and Exemption of Taxes and Duties (No. 530) B.E. 2554 (2011) dated December 14, 2011, announced to reduction of corporate income tax rate of net profit for the company and juristic partnership for 3 years; from 30% to 23% for the first accounting period begins on or after January 1, 2012, and 20% for the following two accounting periods which begins on or after January 1, 2013. The Company has been granted the reduction of corporate income tax rate until December 31, 2014.
ANNUAL REPORT 2012
116 29.
COMMITMENT AND LETTERS OF GUARANTEE 29.1 As at December 31, 2012 and 2011, the Company has letters of guarantee issued by a bank of Baht 6.50 million and Baht 6.10 million, respectively. 29.2 As at December 31, 2012 and 2011, the Company and its subsidiaries have leased building and warehouse under operating lease and service agreements. The future lease payments are summarized as follows: Period of payments
Within 1 year 1 - 5 years Total
CONSOLIDATED FINANCIAL STATEMENTS As at As at December 31, 2012 December 31, 2011 Baht Baht 23,991,898 12,550,529 36,542,427
36,055,479 18,300,199 54,355,678
SEPARATE FINANCIAL STATEMENTS As at As at December 31, 2012 December 31, 2011 Baht Baht 16,898,991 10,827,300 27,726,291
23,462,850 17,250,813 40,713,663
On December 20, 2011, the Company entered into another warehouse lease agreement and service agreement with a company and the Company moved into such warehouse in September, 2012. The lease period is 10 years commencing on the date of registration of lease of the leased property. Under the lease agreement, the Company shall have the option to purchase the leased warehouse after the end of the fifth year or after the end of the lease term at the higher of either the price of such warehouse which is offered by the person interested in purchasing such warehouse or the average price determined by the two independent appraisers who shall be on the list approved by the Stock Exchange of Thailand. On December 22, 2011, the Company had paid deposit for the leased warehouse amounting to Baht 45.88 million. The future lease and service payments are summarized as follows: Period of payments
Within 1 year 1 - 5 years More than 5 years Total
CONSOLIDATED FINANCIAL STATEMENTS As at As at December 31, 2012 December 31, 2011 Baht Baht 45,881,685 191,563,356 248,963,257 486,408,298
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
13,382,158 188,119,093 298,289,205 499,790,456
SEPARATE FINANCIAL STATEMENTS As at As at December 31, 2012 December 31, 2011 Baht Baht 45,881,685 191,563,356 248,963,257 486,408,298
13,382,158 188,119,093 298,289,205 499,790,456
117 29.3
The Company and its subsidiaries have commitments from entering into purchase agreements for machinery, software and office equipment as follows: Unit: Million Baht CONSOLIDATED SEPARATE FINANCIAL STATEMENTS FINANCIAL STATEMENTS As at As at As at As at December 31, 2012 December 31, 2011 December 31, 2012 December 31, 2011 Acquisitions of : - Plant construction - Machine - Computer software
30.
77.40 408.20 1.42
502.02 4.14
267.04 -
406.38 -
PROVIDENT FUND The Company has set up a provident fund which is contributory by employees and the Company. The fund is registered as the provident fund in accordance with the Provident Fund Act B.E. 2530 (1987) in January 2004. For the years ended December 31, 2012 and 2011, the contribution made by the Company was recorded as expenses amounting to Baht 4.62 million and Baht 4.29 million, respectively.
31.
DISCLOSURE OF FINANCIAL INSTRUMENTS The Company presents and discloses financial instruments as follows: 31.1 Accounting Policies Details of significant accounting policies are disclosed in Note 3. 31.2 Credit Risk Credit risk arises when customers do not comply with trading terms and conditions or credit agreements, causing financial losses to the Company and its subsidiaries. As a consequence, the Company and its subsidiaries have dealt with creditworthy counterparty in determining risk reduction from defaults. The carrying amounts of the financial assets in the statement of financial position represents the maximum exposure to credit risk. 31.3
Interest Rate Risk Interest rate risk arises from the potential for a change in interest rate that might have an adverse effect on the Company and its subsidiaries in the current reporting period and in future years. In case the interest rate is higher, it may have an impact to the Company’s and its subsidiaries’ operations since most of the Company’s loans are bearing the floating interest rates.
ANNUAL REPORT 2012
118 31.4 Foreign Exchange Risk Foreign exchange risk arises from the potential fluctuation of foreign exchange rate which might result in an adverse effect on the Company and its subsidiaries in the current reporting period and in future years. The Company and its subsidiaries may have material incremental effect on its financial assets or liabilities denominated in foreign currencies as the Company and its subsidiaries have part of business transactions in foreign currencies. However, the Company and its subsidiaries reduce such risk by offsetting assets and liabilities in foreign currencies with foreign affiliated companies, entering into forward exchange contracts or to receive and settle them with the foreign currency deposit accounts. 31.5 Estimated Fair Value of Financial Instruments Cash and cash equivalents, trade and other receivables, bank overdrafts and short-term borrowings from financial institutions, trade and other payables, current portion of other non-current liabilities; the carrying amounts approximate their fair values due to the relatively short period to maturity. Loans to subsidiaries: fair value of such long-term loans as at December 31, 2012 and 2011 is approximately Baht 127.28 million and Baht 74.57 million, respectively. Liabilities under finance lease: the carrying amount approximates its fair value as the maturity will be in 2013. Long-term borrowings with floating interest rate: the carrying amount approximates its fair value as interest rate of the loan is floating interest rate. As at December 31, 2011, the interest rate swap contract has fair value-asset of Baht 27,710. Such contract was expired on September 30, 2012. As at December 31, 2012 and 2011, fair value of the forward foreign exchange contracts shown in Note 32. 32.
FORWARD EXCHANGE CONTRACTS The Company and the subsidiary entered into forward exchange contracts to reduce foreign exchange exposure. As at December 31, 2012 and 2011, the outstanding forward exchange contracts are summarized as follows: Contractor As at December 31, 2012 The Company
Notional amount (USD)
Contractual exchange rate
Deliverable period
401,241
30.657 - 30.690 Baht per 1 USD 3.0539 - 3.1010 Malaysian Ringgit per 1 USD
January 2013
Baht 12,308,440
Baht 1,133
January 2013
6,451,027 Malaysian Ringgit
(127,060 Malaysian Ringgit) (equivalent to Baht 1,269,330)
Subsidiary
2,096,360
As at December 31, 2011 Subsidiary
2,752,098
3.1345 - 3.1773 Malaysian Ringgit per 1 USD
Deliverable amount
Net fair value Gain (Loss)
January - February 8,715,369 Malaysian 16,541 Malaysian Ringgit 2012 Ringgit (equivalent to Baht 165,312)
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
119 33.
EMPLOYEE JOINT INVESTMENT PROGRAM On August 28, 2012, the Board of Directors’ meeting has unanimously resolved to approve the Employee Joint Investment Program of the Company (“EJIP”) which will be starting from January 1, 2013 to December 31, 2015, totaling 3 years. This program will be implemented for management level of the Company and its subsidiaries, who has service year and performance criteria as set forth in the Company’s EJIP. Under this program, the eligible participants and the Company will contribute an agreed percentage of participants’ salary for the EJIP on a monthly basis until the completion of the program. The securities company is appointed as the program operator who will invest in the Company’s shares in the Stock Exchange of Thailand on the specific date every month as specified in the program. The program participants have the right to sell their shares under the EJIP program each year at the specific percentage of the accumulated shares.
34.
EVENT AFTER REPORTING PERIOD On January 7, 2013, the Company has entered into new loan agreement with PT DSG Surya Mas Indonesia, a subsidiary, by amending the currency of the existing loan from Baht (see Note 22.1) to USD currency, extending the loan repayment term of the existing loans to 2018 to 2021 and offerring additional loan of USD 5 million which gives total loan of USD 8.5 million. The additional of USD 500,000 has been drawndown on February 5, 2013.
35.
RECLASSIFICATION A reclassification has been made in the consolidated statement of financial position as at December 31, 2011, to conform to the classification used in the consolidated statement of financial position as at December 31, 2012 as follows:
36.
Item
Previous classification
Current classification
Baht
Leasehold land - DSG (Malaysia) Sdn Bhd
Property, plant and equipment
Leasehold right
144,202,635
APPROVAL OF FINANCIAL STATEMENTS These financial statements are approved for issuing by the Board of Directors of the Company on February 22, 2013.
ANNUAL REPORT 2012
120 General Information Corporate Information Company Nature of business Address of the principal office
: DSG International (Thailand) Public Company Limited : Manufacturing and marketing of disposable baby and adult diapers : 11th Floor, Regent House Building, 183 Rajdamri Road, Lumpini, Pathumwan, Bangkok 10330 Thailand
Company’s registration number Website Telephone Facsimile Location of the Factory
: : : : :
0107547001067 www.dsgap.com +66 2 651 8061 +66 2 651 8068 39 Moo 1, Hemaraj Saraburi Industrial Zone, Tambon Bualoy, Amphur Nongkhae, Saraburi Province, 18140 Thailand
Telephone Facsimile Registered Capital Issued and Paid-up Capital
: : : :
+66 3 637 3633-9 +66 3 637 3753-4 Baht 900 Million Baht 899.99 Million
No. of Ordinary Shares
: 899.99 Million shares
Par Value
: Baht 1
Company Registrar
Auditor
Thailand Securities Depository Co., Ltd. 62 The Stock Exchange of Thailand Building, Ratchadaphisek Road, Klongtoey, Bangkok 10110, Thailand Tel : +66 2 229 2800 Fax : +66 2 359 1259
Deloitte Touche Tohmatsu Jaiyos Audit Co, Ltd. 25th Floor, Rajanakarn Building 183 South Sathorn Road, Yannawa, Sathorn, Bangkok 10120, Thailand Tel : +66 2 676 5700 Fax : +66 2 676 5757-8
Listing Market
Legal Advisor
The Stock Exchange of Thailand (SET)
Vickery & Worachai Ltd. 16th Floor, GPF Witthayu Tower A 93/1 Wireless Road, Lumpini, Pathumwan, Bangkok 10330, Thailand Tel : +66 2 256 6311-4 Fax : +66 2 256 6317-8
Company’s Stock Code DSGT
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
DSG INTERNATIONAL (THAILAND) PUBLIC COMPANY LIMITED
11th Floor, Regent House Building, 183 Rajdamri Road, Lumpini, Pathumwan, Bangkok 10330 Thailand
T +66 (0) 2651 8061 F +66 (0) 2651 8068 www.dsgap.com