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INTER FAR EAST ENGINEERING PUBLIC COMPANY LIMITED

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c ontent story

page

General Information

3

Message from the Chairman

4

Business Operation

5

Risk Factors

8

Financial Highlight

10

Board of Directors

12

Executive Committee

19

Audit Committee

20

Nomination and Remuneration Committee

22

Risk Management Committee

23

Shareholders structure

24

Directors and Management Compensation

25

Corporate Governance

27

Intercompany Transaction

34

Explanation of Operating Results and Financial Standing

35

Board of Director’s Responsibility Report on Financial Report

40

Audit Committee’s Report

41

Report of Independent Auditor

42

Balance Sheets

43

Statements of Income

46

Statements of Cash Flows

49

Notes to the Financial Statements

51


General

Information

Company Name

Inter Far East Engineering Public Company Limited

Head Office Address

No. 33 Soi Ramkhamheang 22 (Chittranukraw), Huamark District, Bangkapi, Sub-district, Bangkok 10240

Business

Distribution / Rental Electronics Equipment

Company Registration Number

0107537001561

Telephone

0 -2718-8000

Facsimile

0 -2318-0574

Home Page

http://www.ifec.co.th

Share Type

Common share paid up capital total amount of 407,792,810 shares

Registrar

Thailand Securities Depository Company Limited No. 62 Ratchadapisek Road, Klongtoey Sub-District, Klongtoey District, Bangkok 10110

Auditor

AST Master Company Limited 790/12 Thonglor Tower, Soi Thonglor 18, Sukhumvit 55 Road, North Klongtoey Sub-District, Wattana Distsrict, Bangkok 10110

Telephone

0-2318-8016-7, 0-2714-8842-3

Facsimile

0-2185-0225

ifec annual report 2010

2|3


Message from

the Chairman

Dear Shareholders, Amid global economy and local politics uncertainties, we have continued to implement a cost-saving policy. Fortunately, however, Thailand’s 7.8% GDP growth rate in 2010, driven by export expansion, has enabled us to maintain our growth in sales, profit and property value, which have, in turn, allowed us to offer dividends and satisfying rates of return to all shareholders. Meanwhile, in pursuit of a new source of value for our shareholders, we have decided to enter the alternative energy market. We have set up Ifec Green Power Plus Co., Ltd. as our new subsidiary, After successfully securing Mr. Maris Tarab, a highly experienced and competent expert in the industry to comanage the new business. Ifec Green Power Plus is mandated to operate solar power plants and seek ways to conduct other activities in the alternative energy business. The above project is based on our belief that green energy is a creative and eco-friendly business and that it is our duty as a Thai corporate citizen to contribute to cleanness of the environment in which we live. I also personally believe that the business will thrive and bring benefits to all peoples. Members of the Company’s management team, including me, always keep in mind the mission with which we have been entrusted by the shareholders. We are fully committed to putting our best effort in the performance of our fiduciary duties and to ensure good returm of investment for all shareholders. Sincerely Yours

( Mr. Narong Dechachaiwong ) Chairman Inter Far East Engineering Public Company Limited


Business Operation

1SPEVDUTBOE 4FSWJDFT We have marketed digital multifunction photocopiers under Konica Minolta trademark by

#VTJOFTT HPBMT  1. In 2010, our goals were 12%-15% sales growth and 14% net income growth.

leasing, hire-purchasing, selling and servicing

2. We adopted a cost-saving internal policy

arrangements. We have also sold Risograph

and our assets were utilized efficiently to maximize

automatic printers/copiers, NEC PABX and software

the organization’s benefits. Our utilities costs were

applications for electronic document management,

reduced and the use of office supplies and equipment

including PageScope Emterprise Suite., No significant

were systemically controlled.

changes have been made to our products

3. We applied our knowledge, capabilities,

technologies and features in 2010. Our black & white

skills and longstanding experience in maintaining our

multifunction digital photocopiers have retained their

corporate customers and strove to satisfy the need of

printing speeds at 16-75 pages/min, thus suitable for

our customers through our products and services.

general office use. Meanwhile, our large-size colour

4. We ensured cost-efficiency of marketing

production printers achieve colour and black and

activities, emphasized on direct marketing to target

white printing speeds at 65 and 105 pages/min,

customers and promoted and maintained positive

respectively, making them appropriate for using as

images of our products and organisation. Last year,

printing centres of large organizations as well as

we orgnanised a variety of marketing activities,

publishers. In addition, we have imported products

including participation in trade exhibitions, road

under model C 6000/7000 in the fourth quarter.

shows, academic seminars, etc. 5. In 2010, we emphasized on personnel improvement for better productivity to compensate for the increasing workers. We enhanced our employees’ knowledge and skills and improve their working process by application of information technologies which suit to the organization.

ifec annual report 2010

4|5


at 65-120 pages/min. We focused on large and medium-sized organisations in both public and

.BSLFUJOH TFSWJDF TUSBUFHJFT 

private sectors, including state enterprises. In the third and fourth quarters, we also offered a new product line, i.e. BH 164 (PIGASUS), to SMEs and SOHO businesses. 3. We endeavoured to increase the print volume continuously and the effort was successful.

1. We satisfied the need of our customers. We

Last year, the print volume of machines (other than

maintained our existing customers, especially those

photocopiers) with printing function, which was

acquiring our products by leasing or selling

installed to replace printers, increased by 70% and

arrangements, by offering new technologies, more

the proportion of printing increased from 20 : 80 to

efficient products or special promotions. We also

35 : 65. 4. We conducted customer relations activities

maintained good customer relationship to secure acceptance of our products and services, particularly

to enable a vertical market expansion.

by large-account leasehold customers, and make

5. To ensure maximum satisfaction of

customers, each of which typically lasts from the three

customers, we improved the way we provided

to five years, decide to renew their leases.

our pre-sale and post-sale services by applying

2. Our marketing efforts in 2010 were devoted mainly to colour and black & white digital

Pro-Active Service by CSRC (Customer Service Remote Center).

multifunction photocopiers, which offer speeds at 16-75 pages/min, and to colour production printers, which offer black & white and colour printing speeds

3FWFOVF 4USVDUVSF 

„£‡ª£i²‡£²¢Ä”i (Unit : thousand baht)

Product/Business Goods & services

Operated by Inter Far East

2010

%

58.69 100%

2009

%

56.32 100%

2008

%

²³«²³ ®­­¢

Engineering PCL Development of alternative IFEC Green Power energy project

 Note :

-

-

-

-

-

-

Plus Co., Ltd.

Total

58.69 100%

56.32 100%

²³«²³ ®­­¢

The Company’s board meeting, held on 25 August 2010, resolved to set up IFEC Green Plus Co., Ltd. with a registered capital of THB 50 million, divided into five million shares each having the par value of THB 10. As of 31 December 2010, the Company’s investment in the subsidiary stood at THB 24,999,975, represented by 4,999,995 ordinary shares, paid in at THB 5 each. The subsidiary was established on 21 September 2010.


ifec annual report 2010

|7


Risk Factors %LJRQWHFKQRORJ\6PDOOLQVL]H 30 30

Financial Factors A) Financial risk management and policies The Company is exposed to risks from changes in interest rates and in exchange rates,

C) Foreign currency risk The Company does not use forward contracts to hedge its exposure to foreign currency risk.

and from nonperformance of contractual obligations

As at December 31, 2010, foreign currency-

by counterparties. The Company uses derivative

dominated liabilities including short-term loan from

instruments, as and when it considers appropriate,

financial institution and trade accounts payable

to manage such risks. The Company does not hold

amounting to USD 3.29 million were not hedged

or issue derivative instruments for speculative or

through the use of forward contracts.

trading purpose. D) Credit risk B) Interest rate risk

In order to manage its credit risk, which

The interest rate risk is the risk that future

primarily relates to trade accounts receivable, at

movements in market interest rates will affect the

present the Company uses prudent credit policies

results of the Company’s operations and its cash

and maintains a diverse customer base and

flows. The Company’s exposure to interest rate risk

therefore does not anticipate material losses from its

relates primarily to its deposits with financial

debt collection in excess of the allowance for

institutions and short-term and long-term loans. The

doubtful accounts already set up in the accounts. The

long-term loans carry interest at rate close of

Company has a policy to make allowances for

market rates, and the Company believed that the

doubtful accounts at 50% for debts falling overdue

future fluctuation on market interest rate would not

for six months to one year and at 100% for debts

provided significant effect to its operation and cash

falling overdue or more than one year.

flow; therefore, no financial derivative was adopted to manage interest rate risk.


E) Inventory management The Company sells, leases out and provides services related to multifunction digital photocopiers and requires adequate supply of the products for customers. As a result, it is exposed to risks associated with obsolete inventory. The Company has a policy to make allowance for obsolete inventory at 100% for products unsold for more than one year. See details below. (Unit : million baht) 2010 Value Finished goods

2009 %

Value

2008 %

Value

%

73.64

98%

66.14

98%

100.12

92%

8.43

12%

12.13

18%

24.4

22%

Less: Allowance for obsolete inventory

(7.20)

-10%

(10.53)

-16%

(15.78)

-15%

Inventory - net

74.87

100%

67.74

100%

108.74

100%

Jobs-in-progress

#VTJOFTT 'BDUPST  We are the exclusive distributor of Konica

products but also supply of services to maintain

photocopiers, including equipment, parts and

existing customers and secure new customers, which

supplies thereof, in Thailand. Due to our great

requires considerable skills and experience. Our two

relationship with Konica, our contractual arrangement

decades of experience and our skills in this business

has been renewed successively for over two decades.

enable us to provide such services to customers

When Konica Corporation Co., Ltd. and Minolta Co.,

efficiently.

Ltd., which are Japanese manufacturers, merged together and became

KMBT assisted us in selling and servicing by

Konica Minolta Business

establishing a training centre and a web-based

Technologies Inc. (KMBT), we reached an agreement

system that promotes enhancement of useful skills in

with KMBT and secured exclusive distributorship in

order to increase our market share.

Thailand of Konica Minolta photocopiers, including the equipment, parts and supplies. Our photocopier business includes not only selling and leasing of

ifec annual report 2010

8|9


Financial Highlight Financial summary (Unit-Million Baht)

2010

2009

2008

Total Assets

845.18

769.30

814.59

Total Liabilities

255.08

276.31

349.93

Shareholders’ Equity

590.10

492.99

464.66

Financial Ratios Item

2010

2009

2008

EPS (Baht/Share)

0.25

0.18

0.14

Dividend per Share(Baht/Share)

0.12

0.10

0.055

47.88%

55.56%

39.29%

04.3

0.56

0.75

1.31

1.69

1.50

0.95

1.33

1.03

86

86

89

128

109

115

Gross Profit Magin

46.65%

43.71%

46.26%

Net Profit Margin

15.85%

12.24%

9.53%

Return on Equity

16.77%

14.40%

11.98%

Operating Profit Margin

16.86%

12.55%

9.76%

75.98%

77.63%

68.82%

0.69

0.75

0.72

Dividend Payout Ratio (%) Debt Equity Ratio (Time) Liquidity Ratio Current Ratio (time) Quick Ratio (Time) Account receivables Turnover (Days) Profitability Ratio (%)

Efficiency Ratio Return on Fixed Assets (%) Assets Turnover (Time)


ifec annual report 2010

| 11


Board

of Directors

Mr. Narong Dechachaiwong

Mr. Suthep Dansiriviroj

Mr. Damri Aimmanoj

Position : Chairman Education: - Bachelor degree-Central Florida University, U. S.A. - Director Accreditation Program (DAP) by Thai Company Board Institutional Promotion Association (IOD) Current positions : - Chairman / Chief Executive Officer of Inter Far East Engineering Public Company Limited - Independent director and audit committee of Noble Development Public Company Limited

Position : Director Education : - Bachelor of Accountancy (Honors) Thammasat University, Thailand - Director Accreditation Program (DAP), Director Certification Program (DCP), Role of Compensation Committee (RCC) by Thai

Position : Director Education : - Vocational Certificate, Assumption Commercial College - Director Accreditation Program (DAP), Director Certification Director (DCP), Finance for Non- Finance Director (FN) by Thai

Company Board Institutional Promotion Association (IOD) Current positions : - Director/Nomination & Remuneration Committee Member/The Company’s Secretary/ Chief Financial Officer of the Inter Far East Engineering Public Company

Company Board Institutional Promotion Association (IOD) Current positions : - Director/Chief Operating Officer of the Inter Far East Engineering Public Company Limited - Director of the Inter Far East Planer

Limited - Audit Committee member of M Pictures

Company Limited - Director of the IFEC Green Power Plus

- Director of the Inter Far East Planer Company Limited - Chairman of the IFEC Green Power Plus Company Limited

Total attendance at Board meetings in 2010 : 6/6

Entertainment Public Company Limited - Director of the IFEC Green Power Plus Company Limited

Total attendance at Board meetings in 2010 : 6/6

Company Limited

Total attendance at Board meetings of the company in 2010: 6/6


Mr. Yanyong Sonthimas *

Mr. Apichai Anukularmphai *

Mr. Marut Simasathien *

Position: Director Education : - Bachelor Degree in Sciences Ramkamhaeng University, Thailand - Master Degree in Business Administrations Bangkok University, Thailand - Director Accreditation Program (DAP), Audit

Position : Director Education : - B.Sc. in Civil Engineering Chulalongkorn University, Thailand - M.Sc. in Civil Engineering Louisiana State University, U.S.A. - M.B.A. Utah State University, U.S.A.

Position : Director Education : - Bachelor of Accountancy, Thammasat University, Thailand - Master of Business Administration, Kasetsart University, Thailand - National Defense College, Thailand. Joint

Committee Program (ACP) , Finance for Non- Finance Director (FN) by Thai Company

- National Defense College, Thailand Joint Public-Private sector, class 7

Public-Private sector, class 15 - Management Leadership Program, Marshall

Board Institutional Promotion Association (IOD) Current positions : - Director of Inter Far East Engineering Public Company Limited

- Audit Committee Program (ACP) by Thai Company Board Institutional Promotion Association (IOD) Current positions : - Director of the Inter Far East Engineering

School of Business, University of Southern California, Thailand - Director Accreditation Program (DAP) by Thai Company Board Institutional Promotion

- Deputy Managing Director of OGA SynCon Company Limited

Public Company Limited - Director of Yip In Tsoi & Jacks Limited

- Director of MIS Company Limited, Welnet Systems & Supplies Company Limited, SCT Systems Company Limited, Buccaneers (Thailand) Company Limited

- Audit Committee of the SICCO Securities Public Company Limited

Association (IOD) Current positions : - Director/Chairman of the Audit Committee/ Chairman of the of the Inter Far East Engineering Public Company Limited - President of Dhipaya Insurance Public Company Limited - Director of the NL Development Public Company Limited

Total attendance at Board meetings in 2010 : 6/6

Total attendance at board meetings in 2010 : 5/6

Total attendance at board meetings in 2010 : 5/6

ifec annual report 2010

12 | 13


Mr. Somnuk Laiwejpitaya *

Miss. Narintip Viriyabanditkul *

Mr. Maris Tarab *

Position : Director Education : - Bachelor of Electrical Engineering of the King Mongkut’s University of Technology Thonburi, Thailand - Finance for Non-finance & Accounting for Non-accountant course, Faculty of Business and Accountancy, Chulalongkron University, Thailand

Position : Director Education : - Bachelor of Business and Accountancy (finance and banking) Thammasat University - Director Accreditation Program (DAP) by Thai Company Board Institutional Promotion Association (IOD) Current positions : - Director/Audit Committee Member/ Nomination & Remuneration Committee Member of the Inter Far East Engineering Public Company Limited

Position : Director Education : Current positions : - Director of the Inter Far East Engineering Public Company Limited - Director/Chief Executive Officer of the IFEC Green Power Plus Company Limited - Director Asian Development Institute for Community Economy and Technology Chiang Mai Rajabhat University

- Director Accreditation Program (DAP), Director Certification Program (DCP), Audit Committee Program (ACP) by Thai Company Board Institutional Promotion Association (IOD)

- Managing Director of People Media Company Limited

Current positions : - Director/Audit Committee Member of the Inter Far East Engineering Public Company Limited - President of Thai Sukuba Company Limited

Total attendance at board meetings in 2010 : 3/6

- Vice President of OTJ Company Limited, Okayama (Thailand) Company Limited - Director of Yamato Chemicals (Thailand) Company Limited, Yamato Polymer Company Limited, Kaise (Thailand) Company Limited, Mitsui Precision (Thailand) Company Limited,

Remark : * Independent Director 6 board meetings were held in 2010

Koyo Precision (Thailand) Company Limited

Total attendance at board meetings in 2010 : 6/6

Total attendance at Board meetings in 2010 : 6/6


Directors Authorized to sign and bind the Company Directors authorized to sign and bind the Company are “2 directors signing together with the Company’s seal affixed”

  Qualifications for independent directors. Independent director’s qualifications are in line with those prescribed by the Stock Excange of Thailand to achieve a sound business oversight.

c. Not being a blood relative or related

Definition of an independent director

by other legal means such as father, mother,

covers directors who are independent with full

spouses, siblings, children and their spouses,

compliance to published requisites. Our

the executives, major shareholders, controlling

independent directors comply fully with the

person or any person being nominated for an

requisites listed by the regulation of the SEC as

executive position or controlling person of the

follows:

applicant company or its subsidiary.

a. Holding shares not exceeding one per

d. Not currently having nor previously

cent of the total voting rights of the Company, its

had a business relationship with the applicant

parent company, subsidiary, affiliate, major

company, its subsidiary, joint venture or its

shareholder or a person with controlling interest

controlling person in a manner which may

on the Company. The counting must also include

impair an independent judgment .Independent

the shareholding of persons related to the

directors also must not be a shareholder or ever

individual independent director.

having held shares or been a controlling person

b. Neither being nor having been an executive director, employee, staff, paid advisor or a controlling person of the Company, its subsidiary, affiliate, joint-venture , same level subsidiary, a major shareholder or another company belonging to the controlling person of the Company unless the foregoing status has ended not less than two years form the date of application filing with the Office. Exception is made for independent directors who served in the civil service or served as advisors to the Government where the Government is a major

of a person related to the applicant company in a manner that may obstruct the exercising of an independent judgment. He must also never having held or is currently holding shares with implied control of the Company or being the controlling person of a person who has business relationship with the applicant Company, subsidiary, affiliate, joint-ventures, major shareholders or the controlling person of the applicant Company unless the foregoing status has ended not less than two years before the date of application filing is made.

shareholder or the controlling person of the applicant.

ifec annual report 2010

14 | 15


The business relationship as in the first

provider unless the foregoing status has ended

paragraph includes the normal business

not less than two years before the application

transactions such as renting and leasing of real

filing.

estate, transactions related to assets or services or financial services such as receiving of funds or loans making, the undertaking of guarantee, pledging of assets as collateral l and

g. Not being a director who was appointed as a nominee for a director of the applicant Company or its major shareholders or shareholders related to the major shareholders.

other like transactions which result in a financial obligation between the applicant company and its contractual partner in an amount starting from 3% of the total tangible assets of the applicant Company or baht 20,000,000 whichever the amount is lower. The computation of this debt obligation is to be in accordance with the computation of the related transaction as announced by the SEC. However, in the consideration of the financial obligation the total must include the obligations incurred one year prior to the established relationship of the said person. e. Not currently is or ever was an auditor of the applicant Company its subsidiary, affiliate, joint-ventures, major shareholders or its controlling person. Additionally he cannot be a shareholder with implied control or a controlling person or partner of an auditing firm in which the auditor of the applicant Company, its subsidiary, affiliate, joint-venture, major shareholders or the controlling person works for unless the for going status has ended not less the two years prior to the application filing. f. Not currently or ever was having been a professional service provider to the applicant Company. This includes legal counsel and financial advisor with monetary compensation in excess of baht 2 million from the applicant company, its subsidiaries, affiliates, jointventures, major shareholders or the controlling person of the applicant Company. Also he must not be a shareholder with implied control, a controlling person or a partner of the service

h. Not being engaged in a similar business and in direct competition with the applicant Company or its subsidiaries. Not being a partner in a partnership or a working director or an employee, staff, regularly paid advisor or a shareholder in excess of one per cent of the voting rights of other companies engaged in similar businesses and operate in direct competition of the applicant Company or its subsidiaries. i. Not having other qualities which will impair the rendering of an independent opinion on the operation of the applicant Company. Subsequent to his appointment as an independent director in accordance with paragraph (a) and paragraph (i) the independent director may be authorized by the Board of Directors to make operating decisions for the applicant Company, its subsidiaries, affiliates, joint ventures and similar level companies, the major shareholders or the controlling person of the applicant Company. The authorized decisions so granted will be in the form of collective decision.


Tenure of directorship The tenure of a director is clearly listed in the

4. Appointment

of

executive

committee

company’s articles of association which reads

members and/or other ad hoc committee

“at each ordinary annual general shareholders’

members to ensure benefits to the company.

meeting one third of directors must retire. Should the number of retiring directors does not

5. Delegate one or more directors to act on behalf of the Board of Directors.

constitute one third then the nearest to one third

6. Establish and change the authority of

is acceptable. Retiring directors after the first and

directors in signing as representatives of the

second year of incorporation are to draw lots in

company.

retiring.

7. Consider

directors’

compensation

in

accordance with the guideline approved by For subsequent years the longest serving directors are to retire first. Retiring directors may be elected to serve another term.

the shareholders. 8. Oversight of the risks management process and corporate governance. 9. Devotion of self and time to the company and refraining from seeking benefits for self or

For other committee membership such as the

others. Directors shall not engage in any

audit committee, nomination and remuneration

action deemed as representing a conflict of

committee, risks management committee the

interest with the company.

Board of Directors has resolved that the respective appointment be for 3 years.

10. Adoption of the corporate governance and good governance for directors of listed companies as guide lined by the SET and SEC.

Scope of Authority of the Board of Directors

11. Oversight of the rights and benefits of the small and large shareholders.

1. Establish and oversee that the company’s business conduct complies with the articles of association, regulations governing directors and the legally adopted shareholders’ resolutions. 2. Consideration and approval of undertakings proposed by the executive committee, the audit committee and/or other committees. 3. Administrative oversight of the executive committee to ensure that the assigned objectives are met.

ifec annual report 2010

16 | 17


Attendance of directors to the training courses administered by the IOD

Name list

Director Accreditation Program (DAP)

Director CertiďŹ cation Program (DCP)

1. Mr. Narong Dechachaiwong

/

2. Mr. Suthep Dansiriviroj

/

/

3. Mr. Damri Aimmanoj

/

/

4. Mr. Yanyong Sonthimas

/

/ / /

6. Mr. Somnuk Laiwejpitaya

/

7. Miss. Narintip Viriyabanditkul

/

8. Mr. Sumit Charukasnant

/

Finance for Non Finance Director (FN)

Role of Compensation Committee (RCC)

/

5. Mr. Apichai Anukularmphai

9. Mr. Maris Tarab

Audit Committee Program (ACP)

/

/

/


Other committees Scope of authority and responsibility of the Executive Committee 1. To establish policy, direction, strategy and organizational structure of the company in the conduct of the Business according to the economic and market conditions and to propose the direction to be adopted for the board’s approval . 2. To establish and propose a business plan, budget and management/ administrative authority for the board’s approval. 3. To audit and oversee that the corporate policy is closely adhered to in the various operating departments. 4. To audit and track the company’s operating performance and to ensure that the approved business plan is closely followed by management. 5. To engage in financial transactions in connection with accounts opening, borrowing, mortgaging, pledging, guaranteeing, real estate







buying and selling as set forth to ensure benefits to the company, subject to a maximum limit per transaction at THB 50 million or equivalent. 6. Other duties as assigned by the Board of Directors from time to time.

Scope of authority of the Chief Executive Officer (CEO) 1. To manage and oversee the overall business and management of the The Board of Directors has appointed members

company. To achieve the objectives as outlined in the articles of

with specific expertise to the various committees

association and the normal business engagements of the company.

to assist in the vetting processes of important

2. To oversee and track management’s implementation of the board

businesses and to propose directives for the

approved corporate policy and business budget and to ensure that the

board’s consideration and approval. These

target is met.

committees are; the executive committee, audit

3. The authority to issue order, regulation, announcement or

committee, nomination and remuneration

memorandum to ensure that corporate policy is carried out to the

committee and risks management committee.

company’s benefits and to ensure that sound work ethics and discipline

The scope of authority and responsibility of these

are maintained within the company.

committees are as follows:

4. To carry out other assignments as delegated by the board or the executive committee.

Executive Committee 1. Mr. Narong Taychachaiwong Chief Executive Officer

5. To approve transactions to be bound by or not in the normal course of business of the Company, subject to a maximum limit per transaction at THB 5 million or equivalent.

2. Mr. Suthep Dansiriviroj Chief Financial Officer

Approvals made by the Chief Executive Officer shall not include transactions

3. Mr. Damri Aimmanoj

where the CEO has a vested or a potential vested interest in any form with

Chief Operating Officer

the company and/or its subsidiaries. This includes related transactions where prior shareholders’ approval is required. Also, the company’s substantial assets acquisition and disposal must be executed in accordance with the regulation of the SET.

ifec annual report 2010

18 | 19


Independent Directors / Audit Committee

The Board of Directors has appointed the following persons to serve as audit committee members. 1. Mr. Marut Simasathien Chairman of the Audit Committee 3. Miss. Narintip Viriyabanditkul Audit Committee Member 4 Audit Committee meetings were held in 2010

2. Mr. Somnuk Laiwejpitaya Audit Committee Member 4. Miss Pensri Noiyano Secretary to the Audit Committee


Scope of Authority of the Audit Committee The Audit Committee’s duties as delegated by the board of directors are as

(h) Other matters of concern to the

follows :

shareholders and investors as assigned

1

by the Company’s Board of

To review the Company’s financial reporting process to ensure accuracy and completeness.

2

To review Company’s internal control system and internal audit system

To perform any other act as assigned by the company’s board of directors, with the

independence of the internal auditor, and to approve the appointment,

approval of the audit committee.

in charge of the internal audit.

4

7

to ensure that they are appropriate and effective. To determine transfer and dismissal of the chief of an internal audit or any other unit

3

Directors

8

In the performance of its duties should it come across or suspect that the following

To review the Company’s compliance with the law on securities, trading

deeds or transactions have been conducted

and the Exchange’s regulations, and the laws governing the

and which may have direct or implied

company’s business;

material impact to the company’s operation

To consider, select and nominate an independent person to be the

and its financial results the audit committee is

company’s auditor, and to propose the remuneration. To attend a non-

to report to the Board for rectification within

management meeting with an auditor at least once a year;

the time frame agreed to by the audit committee.

5

To review the connected transactions, or transactions that may lead to

(1) Conflict of interest transactions

conflicts of interest and to ensure that they comply with the laws and the Exchange’s regulations, and that the transactions are reasonable and yield maximum benefits to the company.

(2) Frauds or unusual transactions or material shortcomings to the internal control process

6

To prepare and to disclose in the company’s annual report, an audit committee’s report which must be signed off by the audit committee’s

(3) Violation of the laws governing the

chairman consisting of the following information:

securities and SET, the regulations of the

(a) An opinion on the accuracy, completeness and creditability of the

SET or the laws governing the business of

company’s financial report (b)

An opinion on the adequacy of the Company’s internal control system,

the company. Should the directors of the company or members of management fail to rectify the shortcomings

(c) An opinion on compliance with the laws on securities and

outlined in paragraph 1 within a specified

exchange, the Exchange’s regulations, or the laws governing the

timeframe, a member of the audit committee

company’s business,

may report the violation to the SEC or the SET.

(d) An opinion on the credentials of the auditor, (e) An opinion on the transactions that may lead to conflicts of interests, (f) The number of the audit committee meetings, and the attendance of such meetings by each committee member, (g) An opinion or comment received by the audit committee from its performance of duties in accordance with the charter, and

ifec annual report 2010

20 | 21


Nomination and Remuneration Committee

The Board, at its meeting on 4 November 2008, appointed a nomination and remuneration committee members for 3 year tenure as follows : 1. Mr. Marut Simasathien

2. To consider and propose an overall scheme on compensation and other benefits of the company. 3. Select and nominate qualified personal to the Board of Director for consideration and

Chairman of Nomination & Remuneration

appointment of director, directors in committees,

Committee

executive including other committees.

2. Miss. Narintip Viriyabanditkul Nomination & Remuneration Committee Member 3. Mr. Suthep Dansiriviroj Nomination & Remuneration Committee Member 1 Nomination and Remuneration Committee meetings were held in 2010

4. To review the corporate structure and the composition of the board of directors and to recommend changes if necessary. 5. To establish an annual performance review of the board of directors based on the duty and responsibility and the ensuing risks.

Scope of Authority of Nomination Selection of Directors and Executive Committee and Remuneration Committee 1. To establish policy and guideline for the selection

In 2008 the company’s selection process for directors

process and to determine compensation and

was approved by the directors working together

other prerequisites of the members of the board

using the Public Companies Act 1992 and the

and senior management.

announcements of the SEC and SET


Risks Management Committee

In January 4, 2010 the risks management committee consists of the following executive committee members and staff members as follows : 1. Mr. Narong Dechachaiwong

Chairman of the Management Committee

2. Mr. Suthep Dansiriviroj

Management Committee member

3. Mr. Damri Aimmanoj

Management Committee member

4. Mr. Yosvaris Manopkawee

Management Committee member

5. Miss Tassanee Sangkakoon

Management Committee member

6. Miss Pensri Noiyano.

Management Committee member

7. Mr. Teeravat Bunyagate

Management Committee member

8. Mr. Suwat Khunkaew

Management Committee member

9. Mr. Winit Pengthanang

Management Committee member

10. Miss Chaninporn Sritecha

Secretary of management Committee member

2 Risk Management Committee meetings were held in 2010

Scope of authority of the risks management committee 1. Formulate policy on risks taking and the framework for risk management in the various operating units. 2. Support and give advice on risk management processes as requested by the operating units in the organization 3. To communicate and promote risk awareness among the operating units in the organization so that an understanding and appreciation of risks and the management is received. To appraise the risk evaluation and risk management processes throughout the organization 4. Implement an effective internal control process in the handling of company-wide risk management 5. Performance review of the individual risk management units 6. Identify and report of risks related to the action undertaken by senior management.

ifec annual report 2010

22 | 23


Shareholders Structure

The 10 major shareholders of Inter Far East Engineering Public Co., Ltd. as of 30 December 2010 closing are as follows:

Item

Shareholders Name List

1

Dechachaiwong Group *

2

Thai NVDR Co. Ltd. ***

3

Amount of Share holding

%

175,011,530

42.92

39,191,720

9.61

Aimmanoj Group **

36,534,900

8.96

4

The Inter Far East Engineering Public Co., Ltd.

12,850,000

3.15

5

Mr. Montree Thamrongvit

12,567,900

3.08

6

Mr.Voravit keerikoolparn

11,950,000

2.93

7

Mr. Suthep Dansiriviroj

8,797,790

2.16

8

Mr. Vanchai Chaisawat

6,364,500

1.56

9

Mr. Chenwit Sombutcharoenwong

6,229,000

1.53

10

Ayudhya Asset Management Co., Ltd.

4,843,410

1.19

Remarks : * Dechachaiwong Group consists of 1. Mr. Narong Dechachaiwong

Amount of Shareholding 163,341,530

40.06%

2. Mr. Araya Taychachaiwong

Amount of Shareholding

6,050,000

1.48%

3. Ms. Puntharik Taychachaiwong

Amount of Shareholding

5,620,000

1.38%

1. Mr. Damri Aimmanoj

Amount of Shareholding 36,070,000

8.85%

2. Mr. Chavit Aimmanoj

Amount of Shareholding

0.11%

* Aimmanoj Group consists of

464,900

* Thai NVDR Co., Ltd. Is a subsidiary of SET. It is responsible for issuing of Non-Voting Depository Receipts (NVDRs), representing shares listed on the SET, to investors, and execution of transactions in respect of listed company’s shares. NVDR holders receive the same financial benefits as they would receive had they invested directly in shares, except that they receive on voting rights.


Directors and Management’s Compensation

In 2009 the directors and senior management’s compensation was carefully reviewed by the Board of Directors in its meetings. Compensation is premised upon the company’s results and comparison with similar companies in the industry. The details are as follows :

Financial compensation Directors’ and Sub Committee’s Compensation 2010 Name list

(Unit : Baht) Remuneration

The cowrie meets

Total remuneration

The Board of Directors The Audit Committee

(5,000 Baht/time)

(Baht)

1. Mr. Narong Dechachaiwong

-

-

30,000.00

30,000.00

2. Mr. Suthep Dansiriviroj

-

-

30,000.00

30,000.00

3. Mr. Damri Aimmmanoj

-

-

30,000.00

30,000.00

4. Mr. Yanyong Sonthimas

70,000.00

-

30,000.00

100,000.00

5. Mr. Apichai Anukularmphai

70,000.00

-

25,000.00

95,000.00

6. Mr. Sumit Charukesnamt

70,000.00

-

10,000.00

80,000.00

7. Mr. Marut Simasathien *

70,000.00

65,000.00

25,000.00

160,000.00

8. Mr. Somnuk Laiwejpitaya **

70,000.00

45,000.00

30,000.00

145,000.00

9. Miss. Narintip Viriyabanditkul**

70,000.00

45,000.00

30,000.00

145,000.00

-

-

15,000.00

15,000.00

420,000.00

155,000.00

255,000.00

830,000.00

10. Mr. Maris Tarab Total Note:

l

-

Directors holding management position do not receive director’s compensation.

-

* Chairman of the audit committee ** Member of the audit committee

Management compensation for 2010 :

13 persons for a total of Baht 23,119,484.81 consisiting of salary, cost of living

allowances, special gratuities and bonuses for 2010. l

Compensation for the nomination and remuneration committee for 2010 : NONE

l

Compensation for the risks management committee for 2010 ; NONE

ifec annual report 2010

24 | 25


Other compensation / benefits.

construed as being of vested interest in nature. Details of the contract must be disclosed including the names of the contractual parties and the vested interest of the particular director (if any)

A provident in line with the Provident Fund Act 1987

-

Shares and debentures of the company and

was established whereby employees may join by

subsidiaries held and also the movement of

paying into the fund at 3% of the salary which is

the shares during the fiscal year (if any)

matched by the company in equal amount. Employees can redeem their contribution upon leaving the company except when employment is terminated with a stipulation for non payment. This fund is managed by the MFC Mutual Fund (Public) Company Limited.

3. The company is prohibited to pay the directors in cash or in kind except for the normal compensation due such as salary, meeting allowance, per diem, insurance premiums, gratuities, rewards, hospitalization benefits, petro allowance and transportation cost, excluding employees’ benefits of facilities.

Oversight of privileged information Regulations have been established covering the

Conflict of interest

improper use of corporate information for personal gain. These are listed in the articles of association and the employees’ code of ethics e.g.

The company has a transparent practice and procedure in handling transactions that may be

1. Directors are forbidden to engage in similar

regarded as representing a conflict of interest. Such

business, to compete, to become a partner in a

transaction must be published with the value and

registered partnership whether with limited or

names of contractual parties with details on the

unlimited liability, to perform as a director in a

necessity to conduct such transactions. This is to be

company operating similar business which

done in accordance to regulations set forth by the

competes with IFEC unless the shareholders have

SET. Additionally, a summary of the transactions is

been prior informed.

included in the 56-1 filing and the annual report. The

2. Directors must inform the company immediately

company should take responsibility to control the use

in case of the following events :

of internal information by issuing in the employee’s

-

code of conduct.

An involvement in a direct or indirect contract undertaken by the company during the course of the fiscal year that may be


Corporate Governance

The Board of Directors sets the operation oversight as its major policy objective and strives to ensure that good international standard of governance is observed so as to maximize the benefits to all shareholders. Stakeholders are encouraged to contribute through the company’s website

Before the meeting

www.ifec.co.th under investor relations so that their

Shareholders may move to put an agendum to the

suggestions may be reviewed and forwarded to the

shareholders’ meeting or to nominate a person for a

Board of Directors.

director position. The SET is informed of the meeting and the shareholders are invited to introduce an agendum prior to the meeting. Motion can also be made through the company’s website www.ifec.co.th.

Oversight policy

Additionally, the complete invitation to the AGM is posted on the website 30 days prior to the meeting so that all shareholders may become conversant and well prepared for the meeting. Notice of the

The Board recognizes that sound oversights on

meeting is mailed to all shareholders on the share

operation will lead to an efficient organization and

registry by the company’s registrar 14 days before the

increased transparency. Confidence level will

date of the meeting. The invitation consists of the site

increase with a wider acceptance by shareholders,

of the venue, details relevant to each agendum,

investors and the general public. Oversight policies

annual report information on management and the

are established as follows:

auditor, regulations governing the meeting, documentation employed in the meeting and proxy

Rights of Shareholders

forms .Shareholders may grant proxy to any person

The Board respects the ownership rights of the

or to an independent director with no vested interest

shareholders and accords the same basic rights to

in the meeting. For convenience, proxy forms can be

all shareholders as stipulated in the articles of

downloaded

association and other pertinent law. This include the

Additionally, notice of the AGM is published in

rights to attend the annual shareholders’ meeting,

newspaper continuously for 3 days and not less than

the proxy granting rights and the voting thereof, the

3 days before the date of the meeting.

form

the

company’s

website.

right to nominate a director and the right to elect and set compensation for the external auditor. Others are dividend rights, motion to offer a suggestion and question during the shareholders’ meeting and the right to receive a complete and timely information package. Shareholders are encouraged to attend meetings and to participate in the deliberation of the agenda and vote accordingly.

ifec annual report 2010

26 | 27


On the date of the shareholders’ meeting Attendance registration opens one hour prior to the

Equitable Treatment of Shareholders

meeting. Convenience to the shareholders is reflected in the chosen venue, assisting personnel in registration and adequate multi media to be used in the meeting such as vote counting computer program, voting ballots and duty stamps. Before commencement, the Chairman will introduce the directors, members of management and the representative of the auditing firm. The Chairman will announce the total number of the attendants and determine if a quorum is met. Voting process on agenda is explained and the ballot counting will be open and transparent. Shareholders are encouraged to question management on issues being deliberated.

Attention is given to the equitable treatment of all shareholders whose rights must be respected irrespective of their holding, institutional investors or foreign shareholders. Opportunity is given to shareholders to freely submit agenda or nominate a director at an ordinary meeting of the shareholders through the use of the company’s website or through the channels of the SET. Shareholders unable to attend the meeting may grant proxy to any person or a member of the audit committee or an independent director. Proxy forms (Gor), (Kor) and (Khor) in accordance with the announcement of the Business Development Department, Ministry of Commerce are provided. Ballot cards are provided for each

All issues raised at the previous meeting have been

agendum where there may be opposition or

taken up under advisement by the directors who

abstention.

value shareholders’ comments deeply. All directors

shareholders are encouraged to exercise their

shall attend the meeting unless unavoidably

judgment on the individual appointment. The

occupied.

Chairman will conduct the meeting and oversee the

In 2010, two shareholders’ meetings were held, namely the Annual General Meeting of the Shareholders for 2010, held on 2 April 2010, and the Extraordinary General Meeting of the Shareholders, No.1/2010, held on 2 December 2010. Both meetings were attended by the Chairman, Audit Committee Chairman, Risk Management Chairman, senior management executives, including the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) and the Chief Operations Officer (COO), and the legal counsel, who counted votes on any issues raised at the meetings.

Post meeting. After the meeting all resolutions made during the meeting are distributed through the channels of the SET and a complete report is delivered to the SET within 14 days of the meeting. Similar report is also published on the company’s website.

In the appointment of directors,

voting process to ensure that the company’s meeting regulations are observed. The Chairman will give explanation on the voting process and conduct the meeting according to the published agenda (no


interchange of agendum is allowed) unless there is a

Employees :

motion to introduce an additional agendum.

Employees are the proponents of our growth and our

Shareholders are encouraged to express their

most important resource. The company is committed

opinion on the various aspects of the businesses

to foster the development of employees and to

under the agenda prior to the ballot. Members of

ensure that they are equitably treated. Medical

the auditor firm and legal counsel who have no

benefits in addition to the government’s mandated

vested interest in the company serve as scrutinizers

social security program are provided. Group life

during the meeting to ensure transparency and

insurance is provided with Thanachart Life as the

compliance. To date no shareholders have objected

underwriter in addition to an annual medical check

to the balloting during meetings.

up. Relief fund is given in case of death in the family, birthdays are celebrated and a provident fund is in

Roles of Stakeholders

place. Other than these benefits the company continually arranged various training programs to

We recognize that a good relationship and

improve the skills of staff and ultimately our

cooperation between the company and stakeholders

productivity. A training center has been established

are factors that will foster a sustainable growth. We

and staff members are often sent to the

are committed to all stakeholders. The Board has

manufacturer in Japan for training.

mandated that all stakeholders’ rights must be protected and that a good cooperative effort must be

Shareholders :

promoted to ensure stability and prosperity. The

Basic rights of the shareholders are observed and

policy and practice are clearly outlined in the “policy

respected such as the inherent rights in the trading

of business, ethics and staff supervision (Inter Far

or transfer of shares or the rights of easy access to

East Engineering Public Company Limited)”,

the company’s information through the various

Established policy and practice for stakeholders are

channels, the rights to receive the rules and

as follows:

regulations on attending a meeting and the ability to express an opinion in such meetings, the rights to appoint or remove a director, the rights to the voting for the election of the auditor, setting the fee and the rights to receiving dividend. Our disclosures are aimed at fairness, accountability and transparency. Customers : The focus has always been on maximum benefits to our customers and service recipients. Product quality and service excellence are the key success factors. Emphasis is on the solving of our customer’s problems and the after sale service and follow up. Our continued development in this area will ensure us of maximum customer’s satisfaction.

ifec annual report 2010

28 | 29


Suppliers :

At the intra-organisational level, the so-called “5 Sor.

We treat our suppliers with respect and are

Project” was conceived by cooperation of the board,

committed to business integrity under the legal

the managers and all employees. Under the project,

framework and will always work toward fairness and

techniques for saving of energy, including electricity,

mutual benefits.

water supply and paper, by employees were applied within the organization.

Creditors : Facility to allow contacts with/complaints to the We shall abide by our obligations to our creditors. Responsibility to community : We are cognizant of the contribution to the community and encourage the participation of our

Board by shareholders and stakeholders: All shareholders and stakeholders can contact/ submit complaints to the Board at our corporate website (www.ifec.co.th).

employees in these projects. Annually we allocate a budget toward this goal whereby management and staff participate in helping the community that we serve. In 2010, we approved budgets for such social activities as donation of roof tiles to flood victims (through Prince of Songkla University and Modernine TV) or donation of funds to underprivileged children at Bo Ngoen Bo Thong School in Chachoengsao Province.

Disclosures We are committed to complete disclosure of information both financial and non financial. We have produced an information disclosure package for shareholders, investors, analysts and the general public. The disclosure is available through the distributing channel of the SET and our own website. Examples of the information in the disclosure are: -

Environmental concern :

analysis. The auditor’s report and unqualified

Our care for the environment is reflected in the

endorsement and the report on financial

products that we carry. All are certified environmental

responsibility of directors to the financial

friendly via ISO 14001, ISO 9001:2000 (certification attesting to the quality of Konica Minolta production

statements. -

process from design development to production and installation). Additionally, our product received the Blue Angel Mark from the Federal Republic of Germany certifying that the Konica Minolta is

ozone into the atmosphere. Konica Minolta also

Intercompany transactions and the internal control process

-

Business oversight

-

Composition of the Board of Directors

-

Compensation to directors and members of

environmental friendly with minimum ozone emission and ozone filter minimizing the release of

Financial statements with explanation and

management -

Performance results

-

Risk factors and risk management

received an award for energy saving features and reduced green house effect by the Environmental

All of the above is disclosed in the annual report and

Protection Agency of the U.S.

the company’s website. (www.ifec.co.th)

In 2010, our Konica Minolta photocopiers were granted green labels , alternatively called eco-labels, by the Secretariat of the Green Label Project, Thailand

Responsibility of the directors

Environment Institute. Green labels are granted for

The Board’s Composition

quality product that creates less environmental

There are 9 directors on the board. 6 directors are

impacts than those of the same function.

independent with 3 directors holding management


position. The Board oversees the management policy

vision, mission, strategic objectives, and annual

governing the company’s operation. We are committed

budget. Management is fully responsible for the

to good governance which will enhance confidence

implementation of the approved goals targeted at

of shareholders, investors, staff members and those

enhancing the corporate value and ultimately the

who contact us. We also focus on the internal control

stakeholders’ benefits .

process, risk management and generally to ensure that established policy and guidelines are carried out

Other committees

by management. Furthermore the Board of Directors

The Board has appointed various committees with

has approved a business ethics policy statement for

specific expertise to assist in the corporate oversight.

directors, management and staff to pursue

These are: audit committee, executive committee,

rigorously.

nomination and remuneration committee and risks management committee. The respective scope of

The Company’s Secretary.

authority and responsibility of these committees and

Mr. Suthep Dansiriviroj was appointed as the

the meetings held throughout the year is published

company’s secretary with duties as prescribed by the

in the management report outlined above.

1992 Securities and stock market Act as follows: The Board of Directors’ meetings

(1) Preparation and safekeeping of: (a) Registry of Directors

Board meetings are held at a minimum of once for

(b) Notices of board of directors’ meetings,

quarter with advance notice and agenda distributed

minutes and the company’s annual report

prior to each meeting. A unit within the executive

(c) Notices of shareholders’ meetings and

office ensures that an advance notice and agenda is received by the directors 7 days prior to the meeting.

minutes of meetings (2) Safekeeping of conflict of interest reports by

Each agenda is explained in detail so as to enable an adequate review by the directors prior to

directors or management (3) Any other actions as announced by the directors

attendance. 5 board meetings were held in 2010 with minutes accurately recorded for subsequent

of the SEC

review by the directors and relevant personnel. Leadership and vision The Board of Directors is responsible to the

Checks and balances by non management directors

shareholders in ensuring that the business operation

Of the 9 persons on the board, 3 are management

complies with the law, the articles of association and

while 6 are non management. 3 of these serve a 3

the resolutions adopted by the shareholders.

The

year tenure as independent directors in accordance

operation must be conducted with unquestioned

with the announcement of the SET and the corporate

integrity and ethics. The Board sets the corporate

by-law. Retiring directors may be elected to serve another term. Number of outside directorships The Board recognizes the duty and responsibility of the directors to optimally serve the company. It, therefore, mandates that each director should not serve on the board of more than 5 Listed Companies. This is to ensure that each director has ample opportunity to effectively work for IFEC as outlined by the guidelines for listed companies.

ifec annual report 2010

30 | 31


Separation or merging of functional titles

reviews the operating and financial risks giving

Despite the fact that the chairman and chief

the warning signals and recommends methods

executive officer is the same person transparency

to contain such risks.

and checks and balances continue to be provided by the composition of the board with 66% of directors

Directors’ annual evaluation

being independent and non management.

The nomination and remuneration committee is responsible for the evaluation of directors’ annual

Orientation for new directors

performance review in connection with the

New directors are offered a corporate orientation

compensation award. Factors taken in the evaluation

immediately after election. Corporate business plan,

process are responsibility, risks and the increases in

equity structure, shareholders’, corporate profile are

the company’s net worth.

included in the topics covered. In addition, legal issues and relevant implications for listed companies

The development of directors and executive

are also included for the directors’ information.

management The Board sets the vision, mission, strategy,

Report of the directors

objectives, business plan and corporate budget and

The directors recognize the significance of the need

oversight to ensure that management works along

for an accurate and credible financial report which

the approved plan. The business plan is continually

investors may use in their decision making process.

communicated throughout the organization. All

The directors’ acknowledgment on their responsibility

directors have attended required and recommended

in the preparation of the financial report is published

seminars and workshops held by the IOD.

together with the auditor’s report in the 56-1 and 562 filing.

Investor relations We are committed to an accurate, timely, transparent

The internal control process l The internal audit

One of the board’s oversight priorities is the

and complete disclosure. Investor information is distributed directly and indirectly through the various channels as follows : l Direct

financial and operation control with an internal

Research analysts, reporters, investors and those

auditor responsible for the review of the process.

interested may arrange for a meeting with

To ensure independence the internal auditor

management for discussion.

reports directly to the audit committee. l Risk Management Policy

The risks management committee consists of the executive directors and staff members and reports to the audit committee. It identifies and

l Indirect

Corporate information on operating results, financials and filings with the SET are all available on the website of the SET www.set.or.th and on the company’s site at www.ifec.co.th

Personnel As of 31st December 2010, total headcount is 388.

Significant legal disputes during the past 3 years - None -


Total Staff Compensation Regular compensation for 2010 includes salaries, cost of living allowances, travel allowances, corporate contribution to the social security and provident fund accounts. Other non regular compensation consists of commission and cash rewards. The staff provident fund calls for a 3% contribution by employees with matching fund by the company and redemption upon resigning

company. Also since 2006 group life insurance is

except in case of dismissal without payment. The

given to all employees underwritten by Thanachat

fund is managed by the Mutual Fund MFC (Public)

Insurance Co. Ltd.

Personnel development program is planned according to our business strategy so that excellence is achieved at all professional levels in sale, marketing and service. In 2010 the following training courses were held : -

Improvement of English language proficiency (the Business Benchmark training course provided by the Continuing Studies Centre of Chulalongkorn University)

-

Improvement of selling techniques for sales representatives

-

Improvement of technician’s skills

-

Improvement of performance and compensation management system to maintain competitiveness in the labour market and to provide job security

We believe that our staff must be highly competent and knowledgeable on the products that they sell and service. Our target is service excellence and toward this goal our training and development

ifec annual report 2010

32 | 33


Intercompany Transactions

Approval process

Future related transactions

We are committed to a transparent, fair and honest

No changes are expected for future related

business operation. Transactions that may be

transactions. There will be no transfer pricing

regarded as encompassing a conflict of interest with

between us and subsidiaries, related companies

outside parties are dealt with under clearly laid out

and shareholders. Pricing for intercompany

regulations with no exception. Procedural steps and

transactions will be at normal market with business

levels of approval authority are clearly mandated. All

conducted at arms length. Raw materials will

such transactions are done openly with the best

continue to vary according to the prevailing market in

interest of the company in mind.

accordance with the contract. Full disclosures under SEC and SET announcements governing such

Additionally the internal control process and the report of the audit committee also regularly documents such transactions. Related transactions representing a potential conflict of interest are reported to the public in accordance with the guidelines laid out for the listed companies by the SET. We have always rigorously complied with these guidelines.

transactions will be made.


Explanation and Operating Results and Financial Standing Analysis of operation Revenues from sale & services : In 2010, revenues from sale & services amount THB 586.92 million, an increase by THB 23.71 million or 4.21% from the previous year. The increase consists of revenues from sale of THB 14.80 million or 5.67% and revenues from rental and services of THB 8.91 million or 2.95%. Other revenues : In 2010, the Company has other revenues amount THB 2.18 million, and reversal of impairment for non-operating assets amount THB 20.88 million. Gross margins : Gross margins increased by THB 27.65 million or 11.23%. Selling & administrative expenses : Selling expenses increased by THB 6.35 million or 10.42%, due to increase of promotion expenses. Management remuneration increased by THB 3.66 million. The company has early adopted the Thai Accounting Standard (TAS) No.19 “Employee Benefits” prior to its effective date, increase in administrative expenseretirement benefits amount THB 1.11 million and financial costs amount THB 0.61 million. Income taxes : The company has corporate income taxes of THB 25.33 million ,increased baht 14.45 million comparing with the year 2009 amount of baht 10.86 million was also paid out due to the accumulate taxes loss have been used up. Net Profit : The consolidated financial statement for the year 2010 shows net profit of THB 98.98 million which is less than the separate financial statement amount of THB 2.01 million caused by loss from subsidiary “IFEC Green Power Plus Co., Ltd.”

ifec annual report 2010

34 | 35


advance for investments of Baht 39.55 million.

Financial Status Analysis

l

Investments increased by THB 24.99 million. The Company purchase of share capital of Infinite Green Company Limited from a nonrelated entity. The number of share purchased was 2,499,000 shares representing 17% of the

Assets

registered. Infinite Green Company Limited engaged in the production of electricity from

As of 31 December 2010, the Company had total

solar power in order to sell to the Provincial

assets of THB 845.19 million, an increase by THB

Electricity Authority.

75.89 million or about 10% from the previous year. Some of the reasons for the increase are listed

l

million was revalued during the year 2010 by

below: l

independent valuers. Valuations were made on Trade accounts receivable increased by THB

the basis of Market Comparison Approach.

22.28 million from the previous year due to more

Increase amount was THB 59.61 million and as at

installment sales. l

The Company’s land with book value of THB 17.52

December 31, 2010 new net book value was THB 77.13 million.

Advances for investment increased by THB 39.55 million. In 2010, IFEC Green Power Plus Company Limited, the subsidiary, has a project to invest in

l

The Company’s non-operating assets increase amount of THB 20.50 million. In 2010 valuations

the business of alternative power. The Company

were made on the basis of Market Comparison

is in the progress of acquiring two companies

Approach. The book values of the assets were

which hold assets and agreements necessary for

adjusted to the revalued amounts. The Company

operating of power generation business. Such

reversed the allowance for impairment amounting

business acquisition deals are still under

of THB 20.88 million

progress. The ownership of share capitals of those two companies has been transferred to

l

Withholding taxes reduced by THB 8.41 million.

IFEC Green Power Plus Company Limited;

In 2010, the Company recorded income subject

however, the ownership of 2 plots of land which

to tax payment to the Revenue Department.

are the location of power plants has not yet been

However, the retained deficit had been used. As

transferred and only one of Power Purchase

a result, income taxes withheld were used as tax

Agreement (PPA) out of two agreements has

credits.

been transferred to the Company. IFEC Green Power Plus Company Limited recognized the


Assets (Unit : million baht) 2010

Items

Value Cash &cash equivalents

%

Inventory - net Other current assets

Value

2008 %

Value

%

36.29

4%

68.79

9%

47.03

6%

0

0%

41.399

5%

41.03

5%

160.67

19%

138.39

18%

144.8

18%

74.88

9%

67.74

9%

108.74

13%

2.02

0%

4.27

1%

4.99

1%

Temporary investments - net Trade accounts receivable

2009

Trade accounts receivable – long-term portion

58.68

7%

53.87

7%

48.22

6%

Advances for investment

39.55

5%

0

0%

0

0%

Investments in related parties

24.99

3%

0

0%

0

0%

Property, building & equipment - net

253.93

30%

213.07

28%

227.35

28%

Non-operating assets - net

145.26

17%

124.76

16%

125.21

15%

0.81

0%

9.22

1%

19.12

2%

Fixed assets

48.10

6%

47.79

6%

48.10

6%

Total assets

845.18

100%

769.30

100%

814.59

100%

Withholding taxes - net

Trade accounts receivable - net The Company’s net trade accounts receivable as of 31 December 2010 was at THB 219.34 million, consisting of the current portion at THB 160.66 million and long - term portion at THB 58.68 million. The Company has a policy to make allowances for doubtful accounts at 50% for over due 180 days and at 100% for over due more than 360 days. In 2010, allowances for doubtful accounts decreased by THB 3.33 million from the previous year. (Unit : million baht) Items

2010 Value

Net yet due and overdue up to 3 months

2009 %

Value

2008 %

Value

%

216.86

99%

190.6

99%

190.81

99%

3-6 months past due

1.94

1%

1.75

1%

1.54

1%

6-12 months past due

1.13

1%

3.86

2%

1.41

1%

11.16

5%

9.14

5%

4.18

2%

(11.75)

-5%

(13.07)

-7%

(4.92)

-3%

Total trade accounts receivable

219.34

100%

192.28

100%

193.02

100%

Long – term portion

(58.68)

27%

(53.87)

28%

(48.22)

-25%

Trade accounts receivable - net

160.66

73%

138.41

72%

144.80

75%

Over 12 months past due Less: Allowance for doubtful accounts

ifec annual report 2010

36 | 37


Inventories - net As of 31 December 2010, the Company has inventory net amount THB 74.67 million, increase by THB 7.13 million or 11% from the previous year.The Company has a policy to make a 100% allowance for inventory obsolescence no movement more than 360 days. The allowance amount decreased by THB 3.33 million from the previous year. (Unit : million baht) Items

2010 Value

2009 %

Value

2008 %

Value

%

Finished goods

73.64

98%

66.14

98%

100.12

92%

Goods in transit

8.43

12%

12.13

18%

24.4

22%

Less : Allowance for inventory obsolescence

(7.20)

-10%

(10.53)

-16%

(15.78)

-15%

Inventories- net

74.87

100%

67.74

100%

108.74

100%

Liabilities At the end of 2010, the Company has total liabilities amount THB 255.09 million, a reduction by THB 34.04 million or 13% from the previous year. The reduction was due to premature repayments of long-term loans from financial institutions. The long-term loan from financial institutions, net amount THB 31.63 million, decrease by THB 54.67 million or 63% from the previous year. In 2010, the Group has early adopted the Thai Accounting Standard (TAS) No.19 “Employee Benefits” prior to its effective date. The company had retirement benefit obligations as at December 31,2010 amount THB 14.54 million and December 31,2009 amount THB 12.81 million increase THB 1.73 million.

(Unit : million baht) Items

2010 Value

2009 %

Value

2008 %

Value

%

Bank overdrafts & short-term loans from financial institutions

88.76

35%

66.6

23%

117.46

34%

Current portion of long-term loans from financial institutions

58.04

23%

74.38

26%

50.04

14%

Trade accounts payable & accrued expenses

62.12

24%

49.04

17%

68.05

19%

Retirement benefit obligations

14.54

6%

12.81

4%

0

0%

Long-term loans from financial institutions

31.63

12%

86.30

30%

114.38

33%

255.09

100%

289.13

100%

349.93

100%

Total liabilities

Shareholder’s equity The reported figure of the Company’s shareholder’s equity as of 31 December 2009 amount THB 492.99 million. The Company’s adoption of TAS 19 prior to the effective date, the retained earnings for 2009 were adjusted by THB 11.25 million and has retirement benefits expense, financial costs increase in 2009 amount THB 1.56 million, net profit after adjustment reduced from THB 70.71 million to THB 69.15 million. As a result, shareholder’s equity after adjustment for TAS 19 adoption reduced by THB 12.81 million to THB 480.17 million. See a comparison below.


(Uni : baht) Statement of Change of Stockholder’s Equity for 2009 Balance as at 1 January 2009

Before adjustment

After adjustment

464,631,785

464,631,785

(11,245,848)

464,631,785

453,385,937

1,153,911

1,153,911

Treasury stock

(3,960,358)

(3,960,358)

Dividend paid

(39,541,505)

(39,541,505)

70,707,291

69,138,600

492,991,124

480,176,585

Impact from adoption of TAS No.19”Employee benefits” Balance as at 1 January 2009 after adjustment Increased in fair value of investment

Net profit Balance @ 31 December 2009

As of 31 December 2010, the shareholder’s equity total THB 590.11 million, an increase by THB 109.94 million or 23% from the previous year. The increase was due to recorded net profit of THB 98.98 million and increased from premium on land revaluation of THB 59.61 million. See a comparison below. (Uni t: baht)

Balance as at 1 January

2010

2009

480,176,585

464,631,785

Impact from adoption of TAS No.19”Employee benefits” Balance after adjustment Increased in fair value of investment Realised gain from change in Value of investment due to sale Premium on land revaluation

(11,245,848) 480,176,585

453,385,937

608,176

1,153,911

(1,921,220) 59,609,775

Treasury stock

(3,960,358)

Dividend paid

(47,354,487)

(39,541,505)

Net profit

98,983,489

69,138,600

590,102,318

480,176,585

Balance as at 31 December

ifec annual report 2010

38 | 39


Board of Director’s Responsibility Report on Financial Report The Board of Directors is responsible for the preparation of the financial statement of the Inter Far East Public Company Limited and subsidiaries and the annual report. We believe that the company’s results and financials are presented accurately and reasonably. The financial statements are prepared according to the generally accepted accounting principles using sound and regularly unchanged accounting policy. Extreme care is exercised in the integrity of assumptions to ensure accuracy and that potential frauds are detected before damage is caused. Disclosures are made in the notes to the financial statement. The auditor’s opinion on the consolidated and unconsolidated statements is listed in the auditor’s report. The Board has appointed an audit committee to perform its function in accordance with the regulation of the SET and SEC. The “audit committee report” is made by this committee. The Board of Directors confident that the internal control system will establish entrustment on financial statements of the Inter Far East and its subsidiaries fairly and accurately present the results, financial standing and cash generation as of December 31, 2010.

(Mr. Narong Taychachaiwong) Chairman

(Mr. Suthep Dansiriviroj) Director


Audit Committee’s Report The Company’s Board of Directors has appointed the audit committee, who are independent directors with highly qualified in accounting and finance and organizational management as follows: 1. Mr. Marut Simasathien

Chairman of the Audit Committee

2. Mr. Somnuk Laiwejpitaya

Audit Committee Member

3. Miss. Narintip Viriyabanditkul

Audit Committee Member

4. Miss Pensri Noiyano

Secretary to the Audit Committee

In 2010, four Audit Committee’s meetings were held, all of which were attended by every member. The meetings were also participated by one senior accounting executive as well as internal and external auditors, who offered suggestions, shared opinions and obtained useful information for proposal to the Board of Directors. In the same year, the Audit Committee carried out the duties assigned to it by the Board of Directors, as follows: 1)

Review quarterly and annual financial statements and reports for 2010 to ensure that they meet the accounting standards imposed by the Accounting Act, B.E. 2543 (A.D. 2000) and the Notifications of the Stock Exchange of Thailand and the Office of the Securities Exchange Commission and to ensure that the Company’s statements have been prepared and present fairly in accordance with the generally accepted accounting principles and provide full, fair and adequate disclosures and their preparation and disclosure are fairly carried out. The Audit Committee agreed with the external auditor that the Company has conducted its normal business operation in accordance with the requirements of the Stock Exchange of Thailand.

2) Review risk management. The Audit Committee, along with the Board of Directors, monitored and evaluated risk management in relation to the Company’s annual action plan on a quarterly basis to ensure effective and timely risk control. 3) Supervise internal audit activities to ensure compliance with the approved annual action plan, cause identified important issues to be solved and reported to maintain proper internal control and follow up with implementation of resolutions passed by the Audit Committee and the Board of Directors, all of which along with the internal and external auditors and on a quarterly basis. In the opinion of the Audit Committee, the Company’s internal audit operations are adequate, fair and effective. 4) Self-evaluate its performance. The Audit Committee is satisfied with its excellent performance. 5) Select and nominate an auditor and fix the auditor’s remuneration for 2010. The Audit Committee reviewed the performance of the auditor, which was found to be, as in the previous year, satisfactory.

(Mr. Marut Simasathien) Chairman of the Audit Committee

ifec annual report 2010

40 | 41


Report of Independent Auditor INTER FAR EAST ENGINEERING PUBLIC COMPANY LIMITED AND SUBSIDIARY DECEMBER 31, 2010 AND 2009

REPORT OF CERTIFIED PUBLIC ACCOUNTANT To The Board of Directors and Shareholders of Inter Far East Engineering Public Company Limited I have audited the consolidated balance sheet as at December 31, 2010 the consolidated statements of income, changes in shareholders’ equity and cash flows for the year then ended of

Inter Far East Engineering Public Company Limited and

Subsidiary. I have also audited the separate balance sheet as at December 31, 2010, the separate statements of income, changes in shareholders’ equity and cash flows for the years ended December 31, 2010 and 2009 of Inter Far East Engineering Public Company Limited. These financial statements are the responsibility of the Company’s management as to their correctness and the completeness of the presentation. My responsibility is to issue a report on these financial statements based on my audited. I conducted my audits in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Inter Far East Engineering Public Company Limited as at December 31, 2010 and 2009, the results of its operations and cash flows for the years then ended, and the financial position of Inter Far East Engineering Public Company Limited and its subsidiary as at December 31, 2010, the results of their operations and cash flows for the year then ended, in conformity with generally accepted accounting principles.

(PRADIT RODLOYTUK) Certified Public Accountant Registration No. 218 AST Master Co.,Ltd. February 9, 2011


BALANCE SHEETS AS AT DECEMBER 31, 2010 AND 2009

In Baht

Notes

Consolidated

Separate

financial statements

financial statements

2010

2010

2009 (Restated)

ASSETS Current Assets Cash and cash equivalents

36,287,369

35,801,730

68,791,552

Short-term investments, net

6

-

-

41,398,979

Trade accounts receivable, net

7

160,674,766

160,674,766

138,395,165

23

-

17,082,849

-

8

74,877,125

74,877,125

67,738,414

2,019,546

1,992,463

4,271,934

273,858,806

290,428,933

320,596,044

Short-term loan to and interest receivable from subsidiary Inventories, net Other current assets TOTAL CURRENT ASSETS

Non-Current Assets Trade accounts receivable - long-term portion

7

58,676,346

58,676,346

53,873,631

Fixed deposits pledged as collateral

9

32,593,800

32,593,800

32,550,800

Other investments, net

10

10,557,018

10,557,018

9,948,842

Advance for investments

11

39,546,392

-

-

Investments in subsidiary

12

-

24,999,975

-

Investments in related company

13

24,990,000

24,990,000

-

Property, plant and equipment, net

14

253,925,685

253,555,389

213,069,117

Non-operating assets, net

15

145,257,053

145,257,053

124,775,170

Withholding tax deducted at source, net

16

810,083

810,083

9,224,496

4,967,524

4,967,524

5,265,376

571,323,901

556,407,188

448,707,432

845,182,707

846,836,121

769,303,476

Other non-current assets TOTAL NON-CURRENT ASSETS

TOTAL ASSETS

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

ifec annual report 2010

42 | 43


BALANCE SHEETS (CON’T) AS AT DECEMBER 31, 2010 AND 2009

In Baht

Notes

Consolidated

Separate

financial statements

financial statements

2010

2010

2009 (Restated)

LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities Bank overdrafts and short-term loans from financial institutions

17

88,755,575

88,755,575

66,597,714

13,145,885

13,145,885

13,388,404

58,040,400

58,040,400

74,376,000

Deposits received under rental agreements

5,587,461

5,587,461

6,018,454

Accrued corporate income taxes

7,811,393

7,811,393

-

32,122,515

31,765,773

26,777,998

3,450,148

3,450,148

2,852,398

208,913,377

208,556,635

190,010,968

14,536,612

14,536,612

12,814,539

31,630,400

31,630,400

86,301,384

46,167,012

46,167,012

99,115,923

255,080,389

254,723,647

289,126,891

Trade accounts payable Current portion of long-term loans from financial institutions

18

Other current liabilities

Accrued expenses Other current liabilities TOTAL CURRENT LIABILITIES

Non-Current Liabilities Retirement benefit obligations Long-term loans from financial institutions, net TOTAL NON-CURRENT LIABILITIES

TOTAL LIABILITIES

18

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


BALANCE SHEETS (CON’T) AS AT DECEMBER 31, 2010 AND 2009

In Baht

Notes

Consolidated

Separate

financial statements

financial statements

2010

2010

2009

LIABILITIES AND SHAREHOLDERS’ EQUITY (CON’T)

SHAREHOLDERS’ EQUITY Share capital Authorised share capital 407,792,810

407,792,810

407,792,810

407,792,810

407,792,810

407,792,810

(1,394,343)

(1,394,343)

(81,299)

14

59,609,775

59,609,775

-

19

18,295,802

18,295,802

13,195,802

4,000,000

4,000,000

4,000,000

6,589,267

6,589,267

6,589,267

101,798,274

103,808,430

55,269,272

(6,589,267)

(6,589,267)

(6,589,267)

TOTAL SHAREHOLDERS’ EQUITY

590,102,318

592,112,474

480,176,585

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

845,182,707

846,836,121

769,303,476

407,792,810 ordinary shares of Baht 1 each Issued and paid up share capital 407,792,810 ordinary shares of Baht 1 each Unrealised loss from changes in value of investments Premium on land revaluation Retained earnings Appropriated Legal reserve Other reserve Capital reserve for treasury stock

20

Unappropriated

Less : Treasury stock

20

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

ifec annual report 2010

44 | 45


STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

In Baht

Note

Consolidated financial statements 2010

Separate financial statements 2010

2009 (Restated)

REVENUES Sales

275,906,900

275,906,900

261,108,806

311,014,252

311,014,252

302,104,150

20,877,205

20,877,205

-

16,643,843

16,763,908

14,458,180

624,442,200

624,562,265

577,671,136

Cost of sales

127,317,720

127,317,720

126,889,882

Cost of rental and services

185,802,076

185,802,076

190,166,783

Selling expenses

67,226,646

67,226,646

60,880,058

Administrative expenses

86,464,908

84,574,817

87,989,725

Management remuneration

22,689,480

22,689,480

19,033,086

489,500,830

487,610,739

484,959,534

134,941,370

136,951,526

92,711,602

Financial costs

(10,625,303)

(10,625,303)

(12,687,464)

Profit before income tax

124,316,067

126,326,223

80,024,138

(25,332,578)

(25,332,578)

(10,885,538)

98,983,489

100,993,645

69,138,600

0.25

0.26

0.17

394,942,810

394,942,810

395,646,376

Rental and service income Reversal of impairment for non-operating assets Other income Total revenues

15

EXPENSES

Total expenses

Profit before financial costs and income tax

Income tax NET PROFIT

BASIC EARNINGS PER SHARE Net profit Weighted average number of share (shares)

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


ifec annual report 2010

46 | 47

  

19 21

Legal reserve

Dividend Paid (1,394,343)

-

-

-

-

(1,921,220)

608.176

(81,299)

-

(81,299)

59,609,775

-

-

-

59,609,775

-

-

-

-

-

Unrealised gains (loss) Premium on from changes land in value of revaluation investments

407,792,810

-

-

-

-

-

407,792,810

-

407,792,810

Issued and paid up share capital

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

Balance as at December 31, 2010

Net profit

14

4

Notes

Premium on land revaluation

value of investment due to sale

Realised gain from change in

Increase in fair value of investments

Balance as at January 1, 2010 (restated)

TAS No.19 “Employee benefits”

Impact from early adoption of

Balance as at January 1, 2010 (as previously reported)

  

18,295,802

-

-

5,100,000

-

-

-

13,195,802

-

13,195,802

Legal reserve

FOR THE YEAR ENDED DECEMBER 31, 2010

4,000,000

-

-

-

-

-

-

4,000,000

-

4,000,000

Other reserve

6,589,267

-

-

-

-

-

-

6,589,267

-

6,589,267

Capital reserve for treasury stock

Retained earnings

In Baht

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

101,798,274

98,983,489

(47,354,487)

(5,100,000)

-

-

-

55,269,272

(12,814,539)

68,083,811

Unappropri ated

(6,589,267)

-

-

-

-

-

-

(6,589,267)

-

(6,589,267)

Treasury stock

590,102,318

98,983,489

(47,354,487)

-

59,609,775

(1,921,220)

608.176

480,176,585

(12,814,539)

492,991,124

Total


-

19 21

Legal reserve

Dividend paid

-

59,609,775

(1,394,343)

407,792,810

-

59,609,775

-

-

-

(1,921,220)

-

-

-

-

-

(81,299)

-

608,176

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

Balance as at December 31, 2010

Net profit

-

Premium on land revaluation -

14

value of investment due to sale

Realised gain from change in

407,792,810

-

Increase in fair value of investments

4

Balance as at January 1, 2010 (restated)

TAS No.19 “Employee benefits”

Impact from early adoption of

(81,299)

407,792,810

Balance as at January 1, 2010 (as previously reported)

-

-

-

Net profit (Restated) (81,299)

-

-

-

-

-

-

-

-

Premium on land revaluation

-

-

-

-

-

407,792,810

21

Dividend paid

-

-

1,153,911

(1,235,210)

-

(1,235,210)

Unrealised gains (loss) from changes in value of investments

Balance as at December 31, 2009

20

Treasury stock

-

-

19 20

Appropriated - reserve for treasury stock

-

Legal reserve

407,792,810

-

Increase in fair value of investments

4

407,792,810

Balance as at January 1, 2009 (restated)

TAS No.19 “Employee benefits”

Impact from early adoption of

Balance as at January 1, 2009 (as previously reported)

Notes

Issued and paid up share capital

18,295,802

-

-

5,100,000

-

-

-

13,195,802

-

13,195,802

13,195,802

-

-

-

-

3,540,000

-

9,655,802

-

9,655,802

Legal reserve

FOR THE YEAR ENDED DECEMBER 31, 2010

4,000,000

-

-

-

-

-

-

4,000,000

-

4,000,000

4,000,000

-

-

-

-

-

-

4,000,000

-

4,000,000

Other reserve

6,589,267

-

-

-

-

6,589,267

-

6,589,267

6,589,267

-

-

-

3,960,358

-

-

2,628,909

-

2,628,909

Capital reserve for treasury stock

Retained earnings

In Baht

STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

103,808,430

100,993,645

(47,354,487)

(5,100,000)

-

-

-

55,269,272

(12,814,539)

68,083,811

55,269,272

69,138,600

(39,541,505)

-

(3,960,358)

(3,540,000)

-

33,172,535

(11,245,848)

44,418,383

Unappropriated

(6,589,267)

-

-

-

-

-

-

(6,589,267)

-

(6,589,267)

(6,589,267)

-

-

(3,960,358)

-

-

-

(2,628,909)

-

(2,628,909)

Treasury stock

592,112,474

100,993,645

(47,354,487)

-

59,609,775

(1,921,220)

608,176

480,176,585

(12,814,539)

492,991,124

480,176,585

69,138,600

(39,541,505)

(3,960,358)

-

-

1,153,911

453,385,937

(11,245,848)

464,631,785

Total


STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

In Baht

Consolidated

Separate

financial statements

financial statements

2010

2010

2009 (Restated)

Cash flows from operating activities Net profit before income tax

124,316,067

126,326,223

80,024,138

Adjustments to reconcile net profit to net cash rovided by operating activities Interest receivable on short-term loans to subsidiary

-

(82,849)

-

(48,333)

(48,333)

7,706,311

Reversal of doubtful debt - Short-term loan to subsidiary

-

-

(29,068)

Loss from allowance for inventory obsolescence (reverse)

(244,970)

(244,970)

1,195,707

(20,877,205)

(20,877,205)

-

Gain on sale of short-term loan to subsidiary

-

-

(21,581)

Gain on sale of investments in subsidiary

-

-

(21,581)

Dividend revenues - Other investments

-

-

(4,525,850)

93,950,600

93,938,628

100,135,433

1,050,070

1,050,070

(223,370)

187,398

187,398

75,905

(1,921,220)

(1,921,220)

-

(2,911,358)

(2,911,358)

(359,495)

1,722,073

1,722,073

1,028,890

10,625,303

10,625,303

12,687,464

205,848,425

207,763,760

197,672,903

(27,033,983)

(27,033,983)

(6,960,845)

Inventories

(6,893,741)

(6,893,741)

39,807,752

Other current assets

2,252,388

2,279,471

715,838

297,852

297,852

177,556

Trade accounts payable

(242,519)

(242,519)

(13,232,490)

Other current liabilities

5,511,274

5,154,532

(4,137,694)

179,739,696

181,325,372

214,043,020

(10,625,303)

(10,625,303)

(12,147,663)

(17,521,185)

(17,521,185)

(11,695,621)

11,325,771

11,325,771

11,069,437

162,918,979

164,504,655

201,269,173

Doubtful debt - Trade accounts receivable (reverse)

Reversal of impairment for non-operating assets

Depreciation Loss (Gain) on sales of equipment and equipment write off Loss from impairment of equipment Gain from disposal of short-term investments Reversal of allowance for unrecoverable withholding tax deducted at source Retirement benefit obligations Financial costs Profit from operating activities before changes in operational assets and liabilities Decrease (Increase) in operational assets Trade accounts receivable

Other non-current assets (Decrease) in operational liabilities

Cash receipt from operation activities Interest paid Income tax paid Cash received from withholding tax refund Net cash provided by operating activities

The accompanying notes to financial statement are an integral part of these financial statements. ifec annual report 2010

48 | 49


STATEMENTS OF CASH FLOWS (CON’T) FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

In Baht

Consolidated

Separate

financial statements

financial statements

2010

2010

2009

Cash flows from investing activities Increase in fixed deposits pledged as collateral

(43,000)

(43,000)

(550,800)

41,398,979

41,398,979

-

Proceeds from short-term loan to subsidiary

-

-

829,068

Short-term loans to subsidiary

-

(17,000,000)

-

Proceeds from disposal of short-term investments

Cash paid for investments in subsidiary

-

(24,999,975)

-

Cash paid for investments in related company

(24,990,000)

(24,990,000)

-

Advance for investments

(39,546,392)

-

-

Proceeds from disposal of investments in subsidiary

-

-

21,581

Proceeds from sale of short-term loan to subsidiary

-

-

21,581

Cash paid for purchase of equipment

(81,635,482)

(81,253,214)

(91,647,731)

Proceeds from disposal of equipment

5,595,943

5,595,943

6,372,642

-

-

4,525,850

(99,219,952)

(101,291,267)

(80,427,809)

22,157,861

22,157,861

(50,864,864)

Proceeds on long-term loans from financial institutions

28,666,600

28,666,600

63,109,684

Payments of long-term loans from financial insititutions

(99,673,184)

(99,673,184)

(66,850,000)

-

-

(3,960,358)

(47,354,487)

(47,354,487)

(39,541,505)

Net cash used in financing activities

(96,203,210)

(96,203,210)

(98,107,043)

Net increase(decrease) in cash and cash equivalents

(32,504,183)

(32,989,822)

22,734,321

Cash and cash equivalents, Beginning of the years

68,791,552

68,791,552

46,057,231

Cash and cash equivalents, End of the years

36,287,369

35,801,730

68,791,552

241,946

241,946

390,215

36,045,423

35,559,784

68,401,337

36,287,369

35,801,730

68,791,552

Dividends received Net cash used in investing activities Cash flows from financing activities (Decrease) Increase in bank overdrafts and short term loans from financial institutions

Cash paid for treasury stock Dividend paid

SUPPLEMENT DISCLOSURE OF CASH FLOWS INFORMATION Cash and cash equivalents Cash Deposits at financial institutions Total cash and cash equivalents

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


NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2010 AND 2009

1. GENERAL INFORMATION Inter Far East Engineering Public Company Limited was incorporated as a limited company under Thai laws and later changed its status to a public limited company under the Public Limited Company Act. Its registered address is 33 Soi Ramkamhaeng 22, Ramkamhaeng Road, Hua-Mak, Bangkapi, Bangkok. The Company‘s principal activities is trading and hire of office equipment, specifically photocopiers, automatic copiers, and Private Automatic Branch Exchange (PABX) products, together with related maintenance services. During the year, the Company invested in newly established subsidiary, IFEC Green Power Plus Company Limited, which operates in the business of developing alternative energy project. “The Company” represents “Inter Far East Engineering Public Company Limited,” while “The Group” represents “Inter Far East Engineering Public Company Limited” and its subsidiary “IFEC Green Power Plus Company Limited.”

2. BASIS OF FINANCIAL STATEMENT PREPARATION The consolidated and separate financial statements have been prepared in accordance with Thai generally accepted accounting principles under the Accounting Act B.E. 2543, being those Thai Accounting Standards issued under the Accounting Profession Act B.E.2547, and the financial reporting requirements of the Securities and Exchange Commission under the Securities and Exchange Act B.E. 2535. The Company has early adopted in 2010, prior to their effective date, Thai Accounting Standard No.19 “Employee benefits.” The preparation of financial statements in conformity with Thai generally accepted accounting principles requires management to make 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 amounts of revenues and expenses in the reported periods. Although these estimates are based on management’s best knowledge of current events and actions, actual results may differ from those estimates. Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current year. In particular, the comparative have been adjusted or extended to take into account the requirements from the implementation of the Thai Accounting Standard No.19 “Employee benefits” which the Company implemented in 2010, in advance of its effective date. The significant transactions between the Company and the subsidiary have been eliminated in the consolidated financial statements. For the convenience of the user, an English translation of the consolidated and separate financial statements has been prepared from the financial statements that are issued in the Thai language. The financial statements have been prepared under the historical cost convention except for those stated otherwise in accounting policies.

3. ADOPTION OF NEW ACCOUNTING STANDARDS The Federation of Accounting Professions has issued Notification which publishes in Royal Gazatte , mandating the use of new accounting standards and financial reporting standard as follows. New accounting standards, new financial reporting standards, amendments to accounting standards and accounting framework a) Accounting framework The amendment of the accounting framework was announced by the Federation of Accounting Professions on 26 May 2010 with effect on 26 May 2010. b) New accounting standards, new financial reporting standards and amendments to accounting standards The following new accounting standards, new financial reporting standards and amendments to accounting standards were announced by the Federation of Accounting Professions and are mandatory for the accounting periods beginning on or after 1 January 2011 and 1 January 2013. The group has elected not to early adopt these standards. ifec annual report 2010

50 | 51


NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2010 AND 2009

3. ADOPTION OF NEW ACCOUNTING STANDARDS (CON’T) Effective for the period beginning on or after 1 January 2011 TAS 1 (Revised 2009)

Presentation of Financial Statements

TAS 2 (Revised 2009)

Inventories

TAS 7 (Revised 2009)

Statement of Cash Flows

TAS 8 (Revised 2009)

Accounting Policies, Changes in Accounting Estimates and Errors

TAS 10 (Revised 2009)

Events after the Reporting Period

TAS 11 (Revised 2009)

Construction Contracts

TAS 16 (Revised 2009)

Property, Plant and Equipment

TAS 17 (Revised 2009)

Leases

TAS 18 (Revised 2009)

Revenue

TAS 19

Employee Benefits

TAS 23 (Revised 2009)

Borrowing Costs

TAS 24 (Revised 2009)

Related Party Disclosures

TAS 26

Account and Reporting by Retirement Benefit Plans

TAS 27 (Revised 2009)

Consolidated and Separate Financial Statements

TAS 28 (Revised 2009)

Investments in Associates

TAS 29

Financial Reporting in Hyperinflationary Economies

TAS 31 (Revised 2009)

Interests in Joint Ventures

TAS 33 (Revised 2009)

Earnings per Share

TAS 34 (Revised 2009)

Interim Financial Reporting

TAS 36 (Revised 2009)

Impairment of Assets

TAS 37 (Revised 2009)

Provisions, Contingent Liabilities and Contingent Assets

TAS 38 (Revised 2009)

Intangible Assets

TAS 40 (Revised 2009)

Investment Property

TFRS 2

Share-based Payment

TFRS 3 (Revised 2009)

Business Combinations

TFRS 5 (Revised 2009)

Non-current Assets Held for Sale and Discontinued Operations

TFRS 6

Exploration for and Evaluation of Mineral Resources

Effective for the period beginning on or after 1 January 2013 TAS 12

Income taxes

TAS 20 (Revised 2009)

Accounting for Government Grants and Disclosure of Government Assistance

TAS 21 (Revised 2009)

The Effects of Changes in Foreign Exchange Rates

The management of the Company evaluated the effects from implementation of TAS 12 “Income taxes.” Assuming that TAS 12 were implemented, It will have the effects to the financial position as at December 31, 2010, causing total assets to increase by 54.53 million, total liability to increase by Baht 14.90 million and total shareholders’ equity to increase by Baht 39.63 million, the effects to the operating results for the year ended December 31, 2010 will cause the net profit to decrease by Baht 6.23 million. Morever; the Company has early adopted in 2010, prior to its effective date, Thai Accounting Standard No.19 “Employee benefits.”


NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2010 AND 2009

3. ADOPTION OF NEW ACCOUNTING STANDARDS (CON’T) The management of the Company has assessed the effect of these standards and believes that TAS 1 (revised 2009), TAS 2 (revised 2009), TAS 7 (revised 2009), TAS 10 (revised 2009), TAS 16 (revised 2009), TAS 17 (revised 2009), TAS 18 (revised 2009), TAS 23 (revised 2009), TAS 24 (revised 2009), TAS 26 , TAS 27 (revised 2009), TAS 33 (revised 2009), TAS 34 (revised 2009), TAS 36 (revised 2009), TAS 37 (revised 2009),TAS 38 (revised 2009) and TAS 40 (revised 2009) will not have any significant impact on the financial statements for the year in which it is initially applied. The other remaining accounting standards and financial reporting standards are not relevant to the business of the Company.

4. CHANGE IN ACCOUNTING POLICIES As motioned in Note 2, effective on December 31, 2010, the Group has early adopted the Thai Accounting Standard (TAS) No.19 “Employee Benefits” prior to its effective date. The Changes are made in accordance with the requirement of Thai Accounting Standard No.8 (Revised 2009) “Accounting Policies, Change in Accounting Estimates and Errors” by applying retrospectively to adjust the comparative prior-year financial statement presented as if the new accounting standards had always been applied. Under the TAS No.19 “Employee Benefits”, provident funds are accounted for as defined contribution plans and contributions to provident funds are charged to the statements of income when incurred. Obligations relating to post-retirement benefits are accounted for by using the projected unit credit method. The benefit obligation is discounted using interest rates of government bonds should have terms to maturity approximately equal to the terms of the related provident fund payments. Previously, the Group recorded the obligations for post-retirement benefits as incurred. Commencing in 2010, the benefit obligation liabilities are accounted based on the above mentioned method. The 2009 financial statements have been restated accordingly in compliance with the accounting standard. The impacts to the consolidated and separate financial statements relating to the adoption of the new accounting policy are as follows: In Baht Balance sheet as at December 31, 2008 Increase in retirement benefit obligations

11,245,848

Decrease in ending balance of unappropriated retained earnings

11,245,848

Balance sheet as at December 31, 2009 Increase in retirement benefit obligations

12,814,539

Decrease in ending balance of unappropriated retained earnings

12,814,539

Statement of income for the year ended December 31, 2009 Increase in administrative expenses - retirement benefits Increase in financial costs Decrease in basic earnings per share

1,028,890 539,801 0.004

5. SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of those consolidated and separate financial statement are set out below;

ifec annual report 2010

52 | 53


NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2010 AND 2009

5. SIGNIFICANT ACCOUNTING POLICIES (CON’T) 5.1

Investments in subsidiary

Investments in subsidiary, which are those entities in which the group has an interest of more than one half of the voting rights or otherwise has power to exercise control over the financial and operation policies are consolidated. Subsidiary are consolidated from the date on which control is transferred to the Group and are no longer consolidated from the date that control ceases. All intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. Where necessary, accounting policies for subsidiary have been changed to ensure consistency with the policies adopted by the Group. Separate disclosure is made for minority interests in the consolidated balance sheet and consolidated statement of income. The investments in subsidiary presented in the separate financial statements are carried at cost, net of allowance for impairment (if any.) 5.2

Foreign currency translation

Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated into Baht at the exchange rates ruling at that date. Gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies, are recognised in the statement of income. Statements of income and cash flows of foreign entities are translated into the Group’s reporting currency at the weighted average exchange rates for the year and balance sheets are translated at the exchange rates ruling on the balance sheet date. Currency translation differences arising from the retranslation of the net investment in foreign entities are taken to shareholders’ equity. 5.3

Financial instruments

Financial assets carried on the balance sheets include cash and cash equivalents, trade accounts receivable, loan to and other receivable. Financial liabilities carried on the balance sheets include trade creditors, leases and borrowings. The particular recognition methods adopted are disclosed in the individual policy statements associated with each item. The Group did not adopt any derivative strategies to manage the fluctuation of foreign currency and interest rates. 5.4

Cash and cash equivalents

Cash and cash equivalents consist of cash in hand, cash at banks, and all highly liquid investments with an original maturity of three months or less and not subject to withdrawal restrictions. 5.5

Trade accounts receivable

Trade accounts receivable are carried at anticipated realisable value. An estimate is made for doubtful receivables based on a review of all outstanding amounts at the year end. Bad debts are written off during the year in which they are identified. The Company’s management estimates the allowance for doubtful accounts from the ending balance of accounts receivable. The estimate encompasses consideration of past collection experiences and other factors, such as changes in the composition and volume of the receivable, the relationship of the allowance for doubtful accounts to the receivable and the local economic conditions. 5.6

Inventories

Inventories are stated at the lower of cost or net realisable value. Cost is determined by the weighted average method. The cost of purchase comprises both the purchase price and costs directly attributable to the acquisition of the inventory, such as import duties and transportation charges, less all attributable discounts, allowances or rebates. Net realisable value is the estimate of the selling price in the ordinary course of business, less the costs of completion and selling expenses. Allowance is made, where necessary, for obsolete, slow moving and defective inventories.


NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2010 AND 2009

5. SIGNIFICANT ACCOUNTING POLICIES (CON’T) 5.7

Short-term and other investments

Investments in unit trusts of mutual funds and in marketable securities, which the Group hold as investments in available-for-sale securities, are determined at fair value determined by reference to the Stock Exchange of Thailand quoted bid price at the end of the year. Changes in the value of the securities are shown as separate items in shareholders’ equity until the securities are sold and the changes are then included in determining earnings. Other long-term investments comprise investments in non-marketable equity securities and investment in held-tomaturity debt securities which are carried at cost, net of allowance for impairment (if any) and at amortized cost respectively. The Group recognizes loss on impairment of other investments in the statement of income when the fair value of the investments is lower than the cost. 5.8

Non-operating assets

Non-operating assets are stated at the lower of cost and net realizable value. 5.9

Property, plant and equipment

Effective on December 31, 2010, the Company has changed the measurement bases used for determining the valuation of land from the cost method to fair value method. The land is shown at fair value based on triennial valuations by external independent valuers. All other property, plant and equipment are stated at cost less accumulated depreciation. Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount. Estimated recoverable amount is the higher of the anticipated discounted cash flows from the continuing use of the asset and the amount obtainable from the sale of the asset less any costs of disposal. Depreciation is calculated on the straight line method to write off the cost of each asset, except for land which is considered to have an indefinite life, to its residual value over the estimated useful life as follows: Building

20 years

Motor vehicles

5 years

Fixtures and ofďŹ ce equipment

5 years

Restaurant Equipment and Fixtures

3 - 5 years

Photocopies for lease are depreciated under the sum-of-the-years-digits method over the period of 3- 5 years. Gains and losses on disposals are determined by comparing proceeds with the carrying amount and are included in operating profit. 5.10 Provisions Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. Where the Group expects a provision to be reimbursed, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. 5.11 Employee benefits The Group operates a provident fund that is a defined contribution plan. The assets of which are held in a separate trust fund. The provident fund is funded by payments from employees and by the Company. Contributions to the provident fund are charged to the statement of income in the year to which they relate.

ifec annual report 2010

54 | 55


NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2010 AND 2009

5. SIGNIFICANT ACCOUNTING POLICIES (CON’T) The Group provides for post employment benefits, payable to employees under the Thai Labor Law. The present value of employee benefit liabilities recognised in the balance sheet is estimated on an actuarial basis using Projected Unit Credit Method. The calculation was made by utilizing various assumptions about future events. The Company is responsible for the selection of appropriate assumptions. The assumptions used in determining the net period cost for employee benefits include the discount rate, the rate of salary increment, and employee turnover. Any changes in these assumptions will impact the net periodic cost recorded for employee benefits. On an annual basis, the Group determines the appropriate discount rate, which represents the interest rate that should be used to determine the present value of future cash flows currently expected to be required to settle the employee benefits. In determining the appropriate discount rate, the Group considers the market yield at the balance sheet date based on Thai government bonds with currency and term similar to the estimated term of benefit obligation. The principal actuarial assumptions used were as follows;

Consolidated and Separate financial statements 2010 2009 Discount rate

4.8 per annum

4.8 per annum

6.00% p.a. for all employees

6.00% p.a. for all employees

Age-related scale from 0-25%

Age-related scale from 0-25%

According to Thailand TMO97 male

According to Thailand TMO97 male

and female tables

and female tables

Future salary increases Employee turnover Mortality

5.12 Treasury stocks Where the Company purchases the Company’s equity share capital, the consideration paid including any attributable incremental external costs is deducted from total shareholders’ equity as treasury shares until they are cancelled. Where such shares are subsequently sold or reissued, any consideration received is included in shareholders’ equity. 5.13 Revenue recognition Sales are recognised on the delivery of goods or on customer acceptance or on the performance of services. Sales are shown net of sales taxes and discounts, and after eliminating sales within the Group Gross profit from hire-purchase contracts are recognized as income upon signing hire-purchase contracts. The interest on hire-purchase contracts is recognized as revenue on an effective interest rate basis, when each installment is due. Interest income and dividend income are recognized on an accrual basis. 5.14 Basic earnings per share Basic earnings per share are calculated by dividing the net profit attributable to shareholders by the weighted average number of ordinary shares excluding treasury stocks. 5.15 Related parties Enterprises and individuals that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the Company, including holding companies, subsidiary and fellow subsidiary are related parties of the company. Associates and individuals owning, directly or indirectly, an interest in the voting power of the company that gives them significant influence over the enterprise, key management personnel, including directors and officers of the company and close members of the family of these individuals and companies associated with these individuals also constitute related parties.


NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2010 AND 2009

5. SIGNIFICANT ACCOUNTING POLICIES (CON’T) In considering each possible related party relationship, attention is directed to the substance of the relationship, and not merely the legal form. 5.16 Segment reporting Business segments provide products or services that are subject to risks and returns that are different from those of other business segments. Geographical segments provide products or services within a particular economic environment that is subject to risks and returns that are different from those of components operating in other economic environments.

6. SHORT-TERM INVESTMENTS - NET In Baht

Consolidated and Separate financial statements 2010 2009 Short-term investments in unit trusts of open-end mutual fund (available for sale) – at cost Adjust : Unrealized gains from change in value of investments Net

-

39,309,491

-

2,089,488

-

41,398,979

During the year 2010, the outstanding unit trusts were disposed and the Company recognized the gain from disposal of such investment to the statement of income.

7. TRADE ACCOUNTS RECEIVABLE - NET In Baht

Consolidated and Separate financial statements 2010 Accounts receivable-trade

2009

125,104,002

110,444,398

(11,751,742)

(12,630,210)

113,352,260

97,814,188

Accounts receivable-hire purchase

120,893,641

107,101,934

Less : Deferred interest

(14,894,789)

(12,647,326)

105,998,852

94,454,608

219,351,112

192,268,796

Less : Long-term portion

(58,676,346)

(53,873,631)

Net trade accounts receivable - current portion

160,674,766

138,395,165

Less : Allowance for doubtful accounts

Net trade accounts receivable

The aging of the outstanding balances as at the balance sheet dates are as follows:-

ifec annual report 2010

56 | 57


NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2010 AND 2009

7. TRADE ACCOUNTS RECEIVABLE - NET (CON’T) In Baht

Consolidated and Separate financial statements 2010 Net yet due and overdue up to 3 months

2009

216,863,651

190,600,319

3-6 months past due

1,943,687

1,746,999

6-12 months past due

1,131,935

3,860,458

11,163,581

8,691,230

Over 12 months past due Total

231,102,854

204,899,006

Less : Allowance for doubtful accounts

(11,751,742)

(12,630,210)

Trade accounts receivable - net

219,351,112

192,268,796

8. INVENTORIES – NET In Baht

Consolidated and Separate financial statements 2010

2009

Finished goods

73,641,922

66,137,646

Goods in transit

8,430,637

12,134,774

82,072,559

78,272,420

Less : Allowance for inventory obsolescence

(7,195,434)

(10,534,006)

Inventories, net

74,877,125

67,738,414

Total

9. FIXED DEPOSITS PLEDGED AS COLLATERAL As at December 31, 2010, the Company had fixed deposits amounting to Baht 32.6 million (December 31, 2009: Baht 32.6 million) which were pledged to secure the sale of goods and rental to customers and government agencies and to collateralize against short-term trade financing facilities from financial institutions (Note 17 and 25)

10. OTHER INVESTMENTS – NET Consolidated and Separate financial statements % OF HOLDING BUSINESS

2010

2009

AT COST (Baht) 2010

2009

Investments in other company Thai Samsung Electronics Company

Manufacture of electrical 2,500,000

2,500,000

4,451,361

4,619,629

(1,394,343)

(2,170,787)

3,057,018

2,448,842

Investments in debentures

5,000,000

5,000,000

Other investments - net

10,557,018

9,948,842

Limited

appliances

0.13

0.13

Investments in available-for-sale securities Investments in available-for-sale securities at cost Adjust : Unrealised losses from change in fair value of investments Investments in available-for-sale securities at fair value Investments in held-to-maturity debt securities


NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2010 AND 2009

10. OTHER INVESTMENTS – NET (CON’T) The investments in debentures represent investments in 5,000 units of unsubordinated and unsecured debentures of a public limited company with face value of Baht 1,000 each, totaling of Baht 5.0 million. The debentures bear interest at fixed rate of 4.58 percent per annum throughout their terms. The debentures mature in 2012.

11. ADVANCE FOR INVESTMENTS During the year 2010, IFEC Green Power Plus Company Limited, the subsidiary, has a project to invest in the business of alternative power. The Company is in the progress of acquiring two companies which hold assets and agreements necessary for operating of power generation business. Up from December 31, 2010 until the date of authorizing and issuing of these financial statements, such business acquisition deals are still under progress. The ownership of share capitals of those two companies has been transferred to IFEC Green Power Plus Company Limited; however, the ownership of 2 plots of land which are the location of power plants has not yet been transferred and only one of Power Purchase Agreement (PPA) out of two agreements has been transferred to the Company. IFEC Green Power Plus Company Limited recognized the advance for investments of Baht 39.55 million and there is the remaining commitment in respect of the payments for the purchase consideration of the acquired companies according to the business purchasing agreements and service agreements in the amount of Baht 74.68 million (Note 25 F)

12. INVESTMENTS IN SUBSIDIARY Consolidated and Separate financial statements % OF HOLDING BUSINESS IFEC Green Power Plus Company Limited

2010

AT COST (Baht)

2009

2010

2009

Developing project for alternative energy

100.00

-

24,999,975

-

At the Board of Directors’ meeting held on August 25, 2010, the meeting passed the resolutions to approve the investment of a new company, IFEC Green Power Plus Company Limited. The authorized share capital of a new company is Bath 50 million, divided into 5 million share capital with the authorized capital of Baht 10 each. As at December 31, 2010, the Company recognized the investments in such subsidiary amounting to Baht 24,999,975, divided into 4,999,995 million share capital with the issued and paid up capital of Baht 5 each. The subsidiary was registered as limited company on September 21, 2010

13. INVESTMENTS IN RELATED COMPANY At the Board of Directors’ meeting held on February 16, 2010, the meeting passed the resolutions to approve the purchase of share capital of Infinite Green Company Limited from non-related entity. The number of share purchased was 2,499,000 shares representing 17% of the registered and paid up capital of such company. The purchase was made at the price equal to the par value of Baht 10 per share. Total purchase consideration was Baht 24,990,000. Infinite Green Company Limited engaged in the production of electricity from solar power in order to sell to the Provincial Electricity Authority.

ifec annual report 2010

58 | 59


Net book value

Allowance for impairment

Less : Accumulative depreciation

Cost

AS AT DECEMBER 31, 2010

Closing net book value

Depreciation

Loss on impairment

Less : Disposals and written off

Transfer in / (out)

Transfer from inventories

Land valuation

Add : Additions

Opening net book value

FOR THE YEAR ENDED DECEMBER 31, 2009

Net book value

Allowance for impairment

Less : Accumulative depreciation

Cost

AS AT DECEMBER 31, 2009

14. PROPERTY, PLANT AND EQUIPMENT – NET

10,691,136

10,691,136

77,130,601

77,130,601

(1,644,494)

-

-

-

-

-

-

-

(31,963,821)

-

-

-

-

-

42,654,957

-

59,609,775

77,130,601

-

12,335,630

17,520,826

-

-

-

12,335,630

(30,319,327)

-

17,520,826

42,654,957

Buildings

17,520,826

Land

36,344,393

-

(49,770,744)

86,115,137

36,344,393

(12,467,108)

-

(1,905,327)

4,095,132

7,820,342

-

4,576,875

34,224,479

34,224,479

-

(42,106,889)

76,331,368

Fixtures ,office equipment and motor vehicles

128,887,970

(2,021,758)

(291,813,483)

422,723,211

128,887,970

(79,443,676)

(187,398)

(4,740,686)

(273,209)

65,947,007

-

-

147,585,932

147,585,932

(1,834,360)

(298,162,624)

447,582,916

Photocopiers for lease

871,585

-

-

871,585

871,585

-

-

-

(3,821,923)

-

-

3,291,258

1,402,250

1,402,250

-

-

1,402,250

Equipment under installation

Consolidated financial statements (In Baht)

NOTES TO THE FINANCIAL STATEMENTSDECEMBER 31, 2010 AND 2009

253,925,685

(2,021,758)

(373,548,048)

629,495,491

253,925,685

(93,555,278)

(187,398)

(6,646,013)

-

73,767,349

59,609,775

7,868,133

213,069,117

213,069,117

(1,834,360)

(370,588,840)

585,492,317

Total


ifec annual report 2010

60 | 61

10,691,136

77,130,601

Net book value

Allowance for impairment

Less : Accumulative depreciation

Cost

AS AT DECEMBER 31, 2010

10,691,136

77,130,601

(31,963,821)

42,654,957

-

-

77,130,601

(1,644,494)

-

Depreciation

Closing net book value

-

-

Loss on impairment

-

-

Less : Disposals and written off

-

-

-

-

-

-

59,609,775

-

Transfer in / (out)

Transfer from inventories

Land valuation

Add : Additions

Opening net book value

FOR THE YEAR ENDED DECEMBER 31, 2009 12,335,630

12,335,630

17,520,826

17,520,826

-

-

Allowance for impairment

Net book value

(30,319,327)

42,654,957

-

17,520,826

Buildings

Less : Accumulative depreciation

Cost

AS AT DECEMBER 31, 2009

Land

14. PROPERTY, PLANT AND EQUIPMENT – NET (CON’T)

35,974,097

-

(49,758,772)

85,732,869

35,974,097

(12,455,136)

-

(1,905,327)

4,095,132

7,820,342

-

4,194,607

34,224,479

34,224,479

-

(42,106,889)

76,331,368

128,887,970

(2,021,758)

(291,813,483)

422,723,211

128,887,970

(79,443,676)

(187,398)

(4,740,686)

(273,209)

65,947,007

-

-

147,585,932

147,585,932

(1,834,360)

(298,162,624)

447,582,916

Fixtures ,office Photocopiers for equipment and motor lease vehicles

Separate financial statements (In Baht)

NOTES TO THE FINANCIAL STATEMENTSDECEMBER 31, 2010 AND 2009

871,585

-

-

871,585

871,585

-

-

-

(3,821,923)

-

-

3,291,258

1,402,250

1,402,250

-

-

1,402,250

Equipment under installation

253,555,389

(2,021,758)

(373,536,076)

629,113,223

253,555,389

(93,543,306)

(187,398)

(6,646,013)

-

73,767,349

59,609,775

7,458,865

213,069,117

213,069,117

(1,834,360)

(370,588,840)

585,492,317

Total


NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2010 AND 2009

14. PROPERTY, PLANT AND EQUIPMENT – NET (CON’T) As at December 31, 2010, land and building with net book value of Baht 87.82 million (December 31, 2009: Baht 29.9 million) are mortgaged as collateral for credit facilities of short-term and long-term loans from financial institutions (Notes 17 and 18). As at December 31, 2010, certain equipment items have been fully depreciated but are still in use. The original cost, before deducting accumulated depreciation, of those assets amounted to Baht 124.65 million (December 31, 2009: Baht 123.24 million). The Company’s land was revalued during the year 2010 by independent valuers. Valuations were made on the basis of Market Comparison Approach. The book values of the land were adjusted to the revalued amounts and the revaluation surplus was credited to premium on land revaluation in shareholders’ equity at the amount of Baht 59.61 million. As at December 31, 2010, the book value of land after revaluation comparing to that shown in historical cost are as follows; In Baht

Consolidated financial statements Fair value Land

77,130,600

Separate financial statements

Historical cost

Fair value

17,520,826

Historical cost

77,130,600

17,520,826

15. NON-OPERATING ASSETS – NET In Baht

Consolidated and Separate financial statements 2010 Land Buildings-net Total Less : Allowance for impairment Non-operating assets – net

2009

322,023,525

322,023,525

3,078,614

3,473,936

325,102,139

325,497,461

(179,845,086)

(200,722,291)

145,257,053

124,775,170

The Company’s non-operating assets were revalued during 2010 by independent valuers. Valuations were made on the basis of Market Comparison Approach. The book values of the assets were adjusted to the revalued amounts. The Company reversed the allowance for impairment amounting of Baht 20.88 million and recognized as income during the year. As at December 31, 2010, non-operating assets with net book value of Baht 145.26 million (December 31, 2009: Baht 124.78 million) are mortgaged as collateral for credit facilities of short-term and long-term loans from financial institutions. (Notes 17 and 18)


NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2010 AND 2009

16. WITHHOLDING TAX DEDUCTED AT SOURCE – NET In Baht

Consolidated and Separate financial statements 2010 Withholding tax deducted at source

2009 810,083

12,445,406

withholding tax deducted at source

-

(3,220,910)

Withholding tax deducted at source – net

810,083

9,224,496

Less : Allowance for unrecoverable

During the year 2010, the Company received a refund of withholding tax deducted at source amounting to Baht 11.33 million, as a results, the Company recognized the reversal of allowance for unrecoverable withholding tax in the income statements for the year.

17. BANK OVERDRAFTS AND SHORT-TERM LOANS FROM FINANCIAL INSTITUTIONS As at December 31, 2010, the Company has short-term trade financing facilities from financial institutions according to the loan agreements with a total maximum credit limit of Baht 367.55 million (December 31, 2009 : Baht 312.55 million). The trade financing facilities include bank overdrafts, trust receipts, letters of credit and banks’ letters of guarantee. The trust receipt facilities charged interest at the rate of MLR minus 1 per annum and at the rate of MOR per annum for other facilities. The credit facilities are secured by the mortgage of fixed deposits, all the Company’s land and buildings, and nonoperating assets. (Note 9, 14 and 15)

18. LONG-TERM LOAN FROM FINANCIAL INSTITUTIONS In Baht

Consolidated and Separate financial statements 2010 Loan from financial institutions

2009 89,670,800

160,677,384

Less : Current portion

(58,040,400)

(74,376,000)

Long term portion ,net

31,630,400

86,301,384

As at December 31, 2010, the Company had five term loan agreements from commercial banks with the following details; In Baht

Balance as at January 1, 2010 Additions Loan repayment Balance as at December 31, 2010

The first agreement

The second agreement

The third The forth The fifth agreement agreement agreement

114,377,700

25,583,000

15,386,684

5,330,000

-

160,677,384

-

-

-

-

28,666,600

28,666,600

(50,040,000)

(25,583,000)

(15,386,684)

(5,330,000)

(3,333,500)

(99,673,184)

64,337,700

-

-

-

25,333,100

89,670,800

Total

ifec annual report 2010

62 | 63


NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2010 AND 2009

18. LONG-TERM LOAN FROM FINANCIAL INSTITUTIONS (CON’T) The first agreement : The initial principal was Baht 450 million. As at December 31, 2010, the remaining balance of loan was Baht 64.34 million. The loan is repayable in monthly installing of Baht 4.17 million with the grace period for principal repayment of 16 months starting from April 2007 onward; The loan charged the following interest; •

From April 2007 to March 2008 (12 month period) at the rate of MLR – 1.25 per annum

From April 2008 to March 2010 (24 month period) at the rate of MLR – 1.00 per annum

From April 2010 onward at the rate of MLR per annum.

The second agreement : The initial loan principal was Baht 38.92 million. As at December 31, 2010, The payments of principal and interest are made on monthly installment of Baht 1.33 million each, with interests at the rate of MLR minus 0.50 per annum. Such loan agreement was fully paid off during the year. The third agreement : The initial loan principal was Baht 18.19 million. As at December 31, 2010, The payments of principal and interest are made on monthly installment of Baht 0.56 million each, with interests at the rate of MLR per annum. Such loan agreement was fully paid off during the year. The forth agreement : The initial loan principal was Baht 6.00 million. As at December 31, 2010, The payments of principal and interest are made on monthly installment of Baht 0.134 million each, with interests at the rate of MLR per annum. Such loan agreement was fully paid off during the year. The fifth agreement : The initial loan principal was Baht 30.00 million. As at December 31, 2010, the remaining balance of loan was Baht 25.33 million. The payments of principal and interest are made on monthly installment of Baht 0.667 million each, with interests at the rate of MLR per annum. The long-term loan facility is secured over a part of the land, buildings and non-operated assets. (Note 14 and 15) The loan agreement contains normal covenants pertaining to matters such as the maintenance of a certain debt-toequity ratio.

19. LEGAL RESERVE The legal reserve of the Company was established in accordance with the provisions of the Thai Public Company Limited Act B.E. 2535, which requires the appropriation as legal reserve of at least 5% of net profit for the year until the reserve reaches 10% of the authorized share capital. This reserve is not available for dividend distribution.

20. TREASURY STOCKS On September 23, 2008, the Board of Directors’ meeting No. 4/2008 has a resolution to repurchase the Company’s ordinary shares in the Stock Exchange of Thailand for financial management purposes. The maximum fund approved for share repurchase is Baht 18 million. The share repurchasing program has been over. During the share repurchase period from October 8, 2008 to April 8, 2009, the cumulative treasuries stocks brought back by the Company were 12.85 million shares (account for 3.15% of issued and paid up share capital) with total consideration paid of Baht 6,589,267.The Company approved the resale periods of such treasury stocks to be from November 23, 2009 to April 7, 2012 (after six months from the completion date of share reacquisition but not exceeding three years.) On February 14, 2005, the Securities and Exchange Commission of Thailand (SEC) imposed an official requirement for all listed companies to follow the Judicial Council deliberated the issue of treasury share schemes under Section 66/1(2) of the Public Limited Companies Act B.E. 2535, that the cost of treasury shares as acquired by a public limited company should not exceed its unappropriate retained earnings. The Council also suggested that the relevant authorities should require public limited companies to set aside within appropriated retained earnings a separate reserve account in an amount equal to the cost of the treasury shares. The reserve shall remain outstanding until either the shares are sold or paid-up capital is reduced by cancellation of any remaining unsold shares. The Company has complied with such requirements.


NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2010 AND 2009

21. DIVIDENDS PAID At the ordinary shareholder’s meeting held on April 2, 2010, the shareholders passed the resolutions to approve the payment of dividends amounting of Baht 39.49 million. The dividends were paid to the shareholders who hold 394.94 million units of ordinary shares (excluding treasury stocks) at the rate of Baht 0.10 per share. The dividend payments were made in 3 installments. The first installment of Baht 0.03 per share amounting to Baht 11.85 million was made on September 3, 2009, the second installment of Baht 0.03 per share amounting to Baht 11.85 million was on December 1, 2009 and the last installment of Baht 0.04 per share amounting to Baht 15.78 million was on April 30, 2010. At the Board of Directors’ meeting held on August 9, 2010, the board passed the resolutions to approve the payment of interim dividend from the operational performance for the first six-month period ended June 30, 2010 at the rate of 0.05 Baht per share to the issued and paid up share of 407.79 million units subtracted with the treasury stock portion of 12.85 million units, the remaining shares attributable to the dividend were 394.94 million units. Total amount of interim dividends paid was Baht 19.74 million. The dividends were paid as interim dividends on September 9, 2010. At the Board of Directors’ meeting held on November 3, 2010, the board passed the resolutions to approve the payment of interim dividend at the rate of 0.03 Baht per share to the issued and paid up share of 407.79 million units subtracted with the treasury stock portion of 12.85 million units, the remaining shares attributable to the dividend were 394.94 million units. Total amount of interim dividends paid was Baht 11.84 million. The dividends were paid as interim dividends on December 3, 2010. At the ordinary shareholder’s meeting held on April 3, 2009, the shareholders passed the resolutions to approve the payment of dividends amounting of Baht 28.54 million. The dividends were paid to the shareholders who hold 407.79 million units of ordinary shares of Baht 0.07 per share. The first portion of dividends was paid as interim dividends at the rate of Baht 0.03 per share, amounting to Baht 12.23 million on September 2, 2008. The remaining portion of Baht 16.31 million at the rate of Baht 0.04 per share was paid on April 30, 2009 in total amount of Baht 15.86 million. The amount of 0.45 million remaining unpaid is those attributable to treasury stocks and is not subject for dividend distribution. At the Board of Directors’ meeting held on August 5, 2009, the board passed the resolution to approve the payment of interim dividend from the operational performance for the first six-month period ended June 30, 2009 at the rate of 0.03 Baht per share to the issued and paid up share of 407.79 million units subtracted with the treasury stock portion of 12.85 million units, the remaining shares attributable to the dividend were 394.94 million units. Total amount of interim dividends paid was Baht 11.84 million. At the Board of Directors’ meeting held on November 4, 2009, the board passed the resolution to approve the payment of interim dividend from the operational performance for the three-month period ended September 30, 2009 at the rate of 0.03 Baht per share to the issued and paid up share of 407,792,810 shares subtracted with the treasury stock portion of 12,850,000 shares, the remaining shares attributable to the dividend were 394,942,810 shares. Total amount of interim dividends paid was Baht 11.84 million.

ifec annual report 2010

64 | 65


NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2010 AND 2009

22. EXPENSES BY NATURE Some transactions included in calculated operating income for the year ended December 31, 2010 and 2009 can classify by nature as follows; In Baht

Separate financial statements

Consolidated financial statements 2010

2009

2010

Changes in finished goods

(3,800,138)

(3,800,138)

46,245,326

Purchase of finished goods ,net

131,117,858

131,117,858

80,644,555

Spare part and consumable used for photocopiers for lease

62,971,068

62,971,068

59,984,732

Owned assets

14,506,924

14,494,952

13,977,883

Owned asset leased out under operating leases

79,443,676

79,443,676

86,157,550

Trade account receivable

(48,333)

(48,333)

7,706,311

Loss on equipment and equipment

187,398

187,398

75,905

(20,877,205)

(20,877,205)

-

14,934,631

14,934,631

14,984,678

(244,970)

(244,970)

1,195,707

Staff costs

81,597,269

80,639,177

114,290,073

Gain on foreign exchange rate

(5,387,801)

(5,387,801)

(2,764,981)

Depreciation

Doubtful debt (reversal)

Reversal of impairment of non-operating assets Operating lease rental Loss on provision for inventory obsolescence (reversal)

23. TRANSACTIONS WITH RELATED PARTIES A. A) Relationship and pricing policy The relationship among the Company, subsidiary and related companies are as follows;

Relationship 2010

2009

100% shareholding

-

Subsidiary IFEC Green Power Plus Company Limited. Related Companies Infinite Green Company Limited.

17% shareholding

-

The pricing policies between the Company , subsidiary and related company are as follows; •

The interest rate charged to subsidiary approximates to the Company’s cost of finance

(at the rate of 6% per

annum) The loan is non-collateral and will be repaid on demand. •

The rental and service expenses charge between the Company and subsidiary were carried out on commercial

terms and conditions.


NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2010 AND 2009

23. TRANSACTIONS WITH RELATED PARTIES (CON’T) A. B) Balances between related parties The movement of short-term loans and interest receivable from subsidiary in the separate financial statements for the year ended December 31, 2010 can be analyzed as follows; In Baht

Beginning balance

Lending/ Interest receivable

Repayment of principal / interest

Ending balance

IFEC Green Power Plus Company Limited. Principal

-

17,000,000

-

17,000,000

Interest receivable

-

82,849

-

82,849

Total

-

17,082,849

-

17,082,849

A. C)

Related party transactions

The transactions for the year ended December 31, 2010 and 2009 were as follow; In Baht

Consolidated financial statements 2010 2009

Separate financial statements 2010 2009

Interest income IFEC Green Power Plus Company Limited.

-

-

82,849

-

-

-

48,979

-

Rental and service income IFEC Green Power Plus Company Limited.

24. FINANCIAL INFORMATION BY SEGMENT The Company operates in with the single industry segment of trading and hire of office equipment, specifically photocopiers, automatic copiers and Private Automatic Branch Exchange (PABX) products, together with maintenance services. The Company operates in single geographical area in Thailand. As at December 31, 2010, the subsidiary has not started its business in developing project for alternative energy, therefore, there is no presentation of financial information by segment.

25. COMMITMENTS AND CONTINGENT LIABILITIES A.A) The Company has the following outstanding operating leases and service commitments. In Million Baht

Consolidated and Separate financial statements 2010

2009

Payable within 1 year

12.8

13.3

2 years

8.2

6.7

Over 3 years

0.4

1.2

Total

21.4

21.2

ifec annual report 2010

66 | 67


NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2010 AND 2009

25. COMMITMENTS AND CONTINGENT LIABILITIES (CON’T) B) As at December 31, 2010, there were outstanding bank guarantees of approximately Baht 17.11 million (December 31, 2009: Baht 14.73 million) which have been issued by banks on behalf of the Company to secure the sale of goods and rental to customers and government agencies. C) As at December 31, 2010, there were contingent liabilities as the Company was sued by the guarantor who previously made a payment to debtor on behalf of the Company. The guarantor exercised the right of recourse against the Company in the amount of Baht 4.20 million. The Central Bankruptcy Course dismissed the case and it is currently in the progress of appealing by the plaintiff. In the opinion of the management after taking appropriate legal advice, the outcome of such action will not give rise to any significant loss. D) According to the Distributorship Agreement with foreign supplier, the Company must comply with the certain condition as required in the agreement. E) As at December 31, 2010, the Company had the commitment related to the payment for the

remaining 50% of

unpaid share capital of investment in IFEC Green Power Plus Company Limited amounting to Baht 25.0 million. F) As at December 31, 2010, the subsidiary had the commitments in respect of the payments for the purchase consideration of the acquired companies which operate in business of power generation according to the share-purchasing agreements and service agreement in the amount of Baht 74.68 million.

26. FINANCIAL INSTRUMENTS A) Financial risk management and policies The Company is exposed to risks from changes in interest rates and in currency exchange rates, and from nonperformance of contractual obligations by counterparties. The Company uses derivative instruments, as and when it considers appropriate, to manage such risks. The Company does not hold or issue derivative instruments for speculative or trading purpose. B) Interest rate risk The interest rate risk is the risk that future movements in market interest rates will affect the results of the Company’s operations and its cash flows. The Company’s exposure to interest rate risk relates primarily to its deposits with financial institutions and short-term and long-term loans. The long-term loans carry interest at rate close of market rates, and the Company believed that the future fluctuation on market interest rate would not provided significant effect to its operation and cash flow; therefore, no financial derivative was adopted to manage interest rate risk. C) Foreign currency risk The Company does not use forward contracts to hedge its exposure to foreign currency risk. As at December 31, 2010, foreign currency-dominated liabilities including short-term loan from financial institution and trade accounts payable amounting to USD 3.29 million were not hedged through the use of forward contracts. D) Credit risk In order to manage its credit risk, which primarily relates to trade accounts receivable, at present the Company uses prudent credit policies and maintains a diverse customer base. The Company therefore does not anticipate material losses from its debt collection in excess of the allowance for doubtful accounts already set up in the accounts. E) Fair value As the majority of financial assets and liabilities are short-term and the long-term loans carry interest at rates close to market rates, the carrying value of financial asset and liabilities does not materially differ from their fair value.


NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2010 AND 2009

27. CAPITAL MANAGEMENT The primary objective of the Company’s capital management is to ensure that it has an appropriate financial structure and preserves the ability to continue its business as a going concern. According to the balance sheet as at December 31, 2010, the Company’s debt-to-equity ratio was 0.43:1(December 31, 2009: 0.56:1)

28. APPROVAL OF FINANCIAL STATEMENTS These financial statements were authorized for issue by the Company’s Board of Director on February 9, 2011.

ifec annual report 2010

68 | 69


33 Soi Ramkamhang 22 (Chittranukrao) Hua Mark, Bangkapi, Bangkok 10240 tel. 0-2718-8000 fax 0-2318-0574 www.ifec.co.th

(this document is printed by Konica Minolta copier)


IFEC : Annual Report 2010