Page 1

Print in the Park

High quality printing and publication in a green surrounding


Financial Report and Summary of Operating Result (Units  :  Thousand Baht) 2008 2007

%  increase  (decrease)

Balance Sheet Current Assets 1,077,026 995,830 8.15 Total Assets 2,036,649 1,966,703 3.56 Total Liabilities 365,879 411,772 (11.15) Shareholder’s Equity 1,670,769 1,554,932 7.45 Registered Capital 200,000 200,000 - Paid up Capital 200,000 200,000 - No. of Shares  (Million) 200 200 - Income Statement Income from Sales 1,855,296 1,697,768 9.28 Total Income 1,876,119 1,715,281 9.38 Cost of Goods Sold 1,252,099 1,151,971 8.69 Gross Profit 603,197 545,797 10.52 Operating Expenses 248,279 238,232 4.22 Net Profit After Operating Expenses 375,741 325,077 15.59 Profit (Loss) in Affiliated Companies - - - Net Profit 275,838 225,370 22.39 Earning per Share  (Baht) 1.38 1.13 22.39


1,670,769

1,554,932

1,489,562

1,369,970

1,165,794

365,879

411,772

305,974

379,876

299,093

2,036,649

1,966,703

1,795,535

1,749,846

1,464,888

1.38 1.13

1.35

1,876,119

1,715,281

1,747,655

275,838

225,370

269,592

1.17

Shareholder’s Equity (Thousand Baht) 2547 1,165,794 2548 1,369,970 2549 1,489,562 2550 1,554,932 2551 1,670,769

(Thousand Baht) 299,093 379,876 305,974 411,772 365,879

1.09

Total Liabilities 2547 2548 2549 2550 2551

(Thousand Baht) 1,464,888 1,749,846 1,795,535 1,966,703 2,036,649

1,505,999

Total Assets 2547 2548 2549 2550 2551

1,331,937

2547 2548 2549 2550 2551

234,175

2547 2548 2549 2550 2551

217,695

2547 2548 2549 2550 2551

2547 2548 2549 2550 2551

2547 2548 2549 2550 2551

2547 2548 2549 2550 2551

Net Profit 2547 2548 2549 2550 2551

Total Income 2547 2548 2549 2550 2551

Earning per Share 2547 2548 2549 2550 2551

(Thousand Baht) 217,695 234,175 269,592 225,370 275,838

(Thousand Baht) 1,331,937 1,505,999 1,747,655 1,715,281 1,876,119

(Thousand Baht) 1.09 1.17 1.35 1.13 1.38


5 In the Garden 33 Green Production 47 Growth 59 Bloom 81 Teamwork 93 Profit


in the garden

Chapter frontispice: A garden in the Amarin Corporate Park Printing techniques : 4/C process and spot uv


Biography of the Company’s Founder Company Profile Organizational Structure Board of Directors and Audit Committee Message from Chairman Audit Committee Report Good Corporate Governance Report


“The more intelligent you are; the more learned you are, the more mindful you must be not to let greed overpower your intel- ligence; Let the mind grow and become mindful of intelligence; allow it to control intelligence. Be a big tree with deep sturdy roots and a strong trunk. Rather than being f ixated on the treetop to see if it is higher than the mountain, give priority to the roots and the trunk. Make sure it does not grow with a hollow inside, for it can be uprooted any day the gale blows.�

Chukiat Utakapan (1 August 2002)


10

ANNUAL  REPORT  2008


11

ANNUAL  REPORT  2008

The Founder Chukiat Utakapan was born to Khun Ratn and Khun Rarieb Utakapan on 10 May 1942 in Amphoe Rueso of Narathiwat in a family of six children. Following his Mathayom 8 graduation from Mahavajiravudh School in Songkhla, he continued his tertiary education at the Faculty of Arts, Chulalongkorn University. He began his working life at the Tourism Organization of Thailand before moving on to take up the post of a proofreader at Thai Wattana Panich Company Limited where he was subsequently promoted to take charge of “Widhayasarn”, a teachers’ journal, as its Editor-in-Chief. Khun Chukiat eventually turned his attention to public relations and decided to work for the National Housing Authority (NHA). Unawares to him, the job served as a stepping stone for his publishing future. “Baan” was his maiden magazine, a publication designed as an educational tool and a manual to prepare homebuyers who were about to move into the property developed by the NHA at a time the country was struggling with housing insuff iciency. Having discovered that he was not cut out for civil services and with enough acquired knowledge, he resigned from the NHA and put together a team of friends and employees to set up Warasarn Baan Lae Suan Partnership Limited to publish a magazine of the same kind of “Baan”. In September 1976, the f irst issue of “Baan Lae Suan” hit the market. Since then Khun Chukiat had put his experiences and knowledge to good use, turning a modest outf it into a major force in the publishing industry, Amarin Printing and Publishing Public Company Limited. In “Mareng Khuen Samong”, Khun Chukiat discussed his working principles saying: “The Amarin business has been growing consistently. People thought I was visionary. That’s not true. I believe I have more mindfulness. I had an average intelligence. This was indicated since my secondary days when every year the report’s book was returned with the teacher’s remark stating ‘average intelligence’. In business, wisdom is more important than intelligence. If you let intelligence lead, you could get out of control. So, let wisdom lead! Or at least use your wisdom to regulate your intelligence. Be conscious of your own limitations; don’t get senselessly greedy. Carry out what you have thought out mindfully with perseverance. Don’t ever give in and life will be happy, success will follow. Yet, success doesn’t have to be absolute; you don’t have to be overly successful so there are lessons for you to learn. There are countless failures in mind life but people tend to overlook them, preferring to pay attention only to successes.” Khun Chukiat Utakapan passed away peacefully on 10 December 2002, aged 60 years old and seven months. It was over six years since that sad day. But Khun Chukiat has left a lasting legacy of mindfulness and intelligence to generations of Amarin staffs who continue to live his educational intent in the House called “Amarin Printing and Publishing Public Company Limited.”


12

ANNUAL  REPORT  2008

The Company In the beginning, it was a modest editorial team of an ensemble of friends and a few employees that Khun Chukiat Utakapan put together to set up Warasarn Baan Lae Suan Partnership Limited in fulf illment of his dream to primarily publish Baan Lae Suan magazine, with the f irst issue hitting the magazine rack in September 1976. At the time, it had to outsource its publication to external printing houses. Amarin Printing Partnership Limited was only founded later to print its own magazines and subsequently made its printing services to external printing orders. Albeit a small staff, the genesis was a giant step that made it possible for business expansion. Fund mobilization soon became inevitable and the small printing outf it was listed as a public company in the Stock Exchange of Thailand in 1993; it was then renamed “Amarin Printing and Publishing Public Company Limited”. That same year, the Company expanded its business into distribution through the newly-established Amarin Book Center Co., Ltd. which handles its entire range of publications. At the same time, “Nai Indra Bookstore,” a name His Majesty the King graciously designated after His f irst Literary Work, Nai Indra Phu Pit Thong Lang Phra, was set up separately as the Company’s own retail outlets. From a few reader groups, its readership has grown both in size and diversity. The Company responded by producing other magazines to meet the readers’ varied interests with Praew and Praew Sudsapda being the f irst two magazines that emerged to meet market demands. Today, the Company boasts a total of 12 titles in its magazine portfolio and publishes hundreds of book titles as it takes outside printing orders and expands its business to other areas.


Organization Chart Board of Director The Audit Committee The Audit Committee Off ice

President Senior Executive Vice President

Chief Exective Off icer Assistant Chief Executive Off icer President’s Off ice Director Accounting and F inance Director Managing Director Printing Business Division

Human Resources Director Managing Director Publishing Business Division


14

ANNUAL  REPORT  2008


15

ANNUAL  REPORT  2008

Board of Directors and Audit Committee 1. Mrs. Metta Utakapan 2. Mrs. Supawadee Komaradat 3. Mrs. Rarin Utakapan 4. Mr. Charoenchit Na Songkhla 5. Mr. Wathanyu Na Thalang 6. Mr. Somchai Phagaphasvivat 7. Mr. Smat Ruangnarong 8. Mr. Cheewapat Na Thalang 9. Mrs. Suphap Noi-um

Chairperson Director Director Independent Director and Member of the Audit Committee Independent Director and Member of the Audit Committee Independent Director and Member of the Audit Committee Director Director Director


16

ANNUAL  REPORT  2008

Management Team

Front  Row  (From  Left  to  Right)  Benjaraj  Pattanaviroj  Director  of  Creative & Event  Pattrawan  Pooltawekiat  Editorial  Director  of  Amarin  Publishing Services  Ampawan  Boonchouy  President’s  Off ice  Director  Titaya  Nilrungsee  Assistant  to  Managing  Director  of  Printing  Business  Division Back  Row  (From  Left  to  Right)  Vararat  Sornsrivichai  Marketing  and  Brand  Communication  Director  Theeratorn  Sang-ngeon  Assistant  to  Managing Director  of  Printing  Business  Division  Theerapat  Chandawongsa  Production  Director  of  Printing  Business  Division  Buncha  Wongthongcharoen Human  Resources  Director  Amornrat  Akkawat  Technical  Director  of  Printing  Business  Division  Bussapakes  Wongchaoum  Administration  Director of  Printing  Business  Division  Jutamas  Samitanonda  Sales  Director  of  Printing  Business  Division  Tanaree  Pimparu  Accounting  and  F inance  Director


17

ANNUAL  REPORT  2008

Front  Row  (From  Left  to  Right)  Rarin  Utakapan  Managing  Director  of  Publishing  Business  Division  Metta  Utakapan  President  and  Chief Executive  Off icer  Nuanchan  Supanimit  Deputy  Managing  Director  of  Publishing  Business  Division  Back  Row  (From  Left  to  Right)  Achara  Taesuwan  Advertising  Director  (1)  Praphan  Prabhasavat  Deputy  Managing  Director  of  Publishing  Business  Division  Uraiwan  Soontornhong  Advertising Director  (2)  Dhanakit  Wanapoonphol  Business  Development  Director  Ongaj  Jira-on  Editorial  Director  of  Book  Department  Cheewapat  Na  Thalang Managing  Director  of  Printing  Business  Division  Supawadee  Komaradat  Senior  Executive  Vice  President


18

ANNUAL  REPORT  2008


19

ANNUAL  REPORT  2008

Message from Chairperson Dear Valued Shareholders.

During 2008, Thailand’s overall economy was adversely affected with minus growth as a result of global recession, especially at the time when the world’s leading f inancial institutions were overwhelmed by severe liquidity crunch with impact spewing across the globe. For Thailand, the impact on its economy was inevitable as was evident in the declining production needed for business survival while others were forced to close shops and lay off workers. Amidst this global economic doldrums, Amarin had adopted a prudent and eff icient organizational management strict adhering to transparent management in accordance with the Principles of Good Corporate Governance. In this regard, it took steps to strengthen the operation both in careful liquidity management and continued personnel development, making it possible for the Company to post a satisfactory operating result by year end. As far as the Company is concerned, 2008 was a particularly successful year in terms of income and net prof it. In 2008, Amarin’s total income from all its lines of business amounted to Baht 1,876.12 million, an increase of 9.38% over the previous year; net prof it was Baht 275.84 million, up 22.39%, and net earning per share was Baht 1.38. Magazines: Secret became our latest magazine in 2008. Being the twelfth under this category, the magazine which was available to the public in July 2008 features contents pertaining to the secret to happiness and success. And, like its predecessors, it was received enthusiastically by the readers. This latest addition brings the total of our magazine titles to 12. Books: Paying equal attention to every group of readers, the Company’s quality publications were able to grow hand in hand with our magazine production. Today, given the growth in our editorial capacity with 14-strong aff iliate imprints, we are well positioned to meet the readers’ requirements. Total sale in 2008 rose 19.8%, thanks to the acquired translation and publication copyright of such world-class bestsellers as the top-selling book, Last Lecture. Dr. Som Sujeera’s The Top Secret, a publication in the religion-cum-psychology category, also continues to be popular with readers. The f inancial achievement in this area is clearly attributable to the Company’s pioneering and creative role in making religious literature modern and simplif ied. Tour: New routes both at home and abroad were developed in 2008 as our organized tour service continued to be available to corporate and individual clients under the concept “The Ultimate Experience with Amarin Tours”. Our diverse and one-of-a-kind travel programs to routes and tourist destinations, offered based on high quality services, had won the trust of client groups and leading organizations with 51% rise in operating results. Fairs: Three major fairs were held in 2008. Baan Lae Suan Fair, held for the ninth consecutive year at Impact Trade Exhibition Center at Muang Thong Thani, was one of Thailand’s largest Home and Garden Fair for home lovers. So popular was this fair that it has become a strong selling point that continued to contribute to the growth of the Company. The Seventh Amarin Book Fair and the Fourth Health, Cuisine & Beauty Festival were the two other major fairs held to enthusiastic reception both from the exhibitors and visitors. Television Programs: The Company continued to produce “Health Club”, a quality television program broadcast every Tuesday from 04.15 – 04.30 pm on Channel 7. The program was improved with more interesting contents. Printing Business: Until 2008, the Company had been investing on more state-of-the-art printing machines and equipment while old ones were replaced. However, driven by the determination to focus on strategic competition development, Amarin led the industry in cost management with production cost cut, printing and human resources managed for optimum result and income raised following the adjustment of its proactive strategy and enhancement of operational management aimed at retaining existing customers and growing new promising markets.


20

ANNUAL  REPORT  2008

2009 Business Outlook

Although it is expected that business growth in 2008 will remain sluggish in a sustained yet bleak outlook, the Company is set to grow further, unwavering in its commitment to a business operation that is guided by the desire to improve people’s quality of life and bring positive things to Thai families and society. More sales will be generated through new products or added channels to help maintain healthy income growth while continued prof it will be earned from the expansion of our content resources which has been the case with the past 31 years in an operation whose core business we def ine as “Content Business”.

Publishing Business

Magazines Amarin has a total of 12 titles in its magazine portfolio. Grouped under specif ic categories, Woman Magazines include Praew, Sudsapda, WE, and In Style. Under Food and Health Magazines are titles including Cheewajit, Health & Cuisine, SHAPE and Secret. Mother and Child Magazines features Real Parenting while Baan & Suan and room are the existing titles under House and Décor Magazines. Meanwhile, National Geographic (Thai edition) continues to be the proud title under Feature Magazines. In the year ahead, its 12 magazines will concentrate on content and design improving to better respond to the needs of modern-day readers. Books Determined to bring a diverse range of f ine, world-class quality publications to both children and adults, Amarin books are informative and entertaining, providing answers to readers’ different tastes and orientations which f inally reflect the Company’s very own commitment to improving the public’s quality of life through reading. In 2009, it plans to increase its output by 15% to approximately 400 titles to serve more diversif ied readers. Existing Thai content will see tangible expansion as more titles will be translated into foreign languages, an initiative débuted in 2004 at the world’s biggest book fair, the Frankfurt Book Fair in Germany. In 2008, in pursuit of business expansion based on existing resources, Amarin sold the copyright of some of its publications to Italy, Spain, Indonesia, Taiwan, Malaysia and Korea. The expanded markets marked the third successive year in its attempt to take its existing Content Business a step further toward a new and promising future. Tour and Seminars Amarin’s business development units including tour, seminar and television programs have all been relocated to Arun Amarin Off ice, which, following the completion of its renovation, has since February 2007 become another income-generating center for its Informal Education Business Center where the scope of knowledge is broadened to reach Thai society. Tour Business: Under the concept of “The Service You Can Trust”, more tourist routes were developed by Amarin Tour to bring about differences and novelty both in domestic and overseas travel experience to its customers through world-class travel packages with some tailored to the specif ic requirements of corporate clients and external organizations. Training and Seminar Business: Another quality undertaking engineered by Amarin Training Department, training courses developed under the concept “Learning for Better Living” are informative and entertaining. The offerings represent Amarin’s creative efforts in growing its content resources in new businesses through seminars and courses as diverse as decorative design, food, health, beauty and such skill enhancements as writing and translation, among others. Television In 2008, Health Club was the only television program remaining, thanks to its continued success. In the year ahead, however, “Baan Lae Suan Magazine on TV” will be revived to seek broadcasting opportunities with an appropriate television channel.


21

ANNUAL  REPORT  2008

Fairs When Baan Lae Suan Fair is unveiled in 2009, it will be the tenth in its series. IMPACT Muang Thong Thani Exhibition Center has been chosen as the venue of the fair due to its generous exhibition space of 40,000 square meters. Meanwhile, the Queen Sirikit National Convention Center will host the 8th Amarin Book Fair and the 5th Health, Cuisine & Beauty Festival in 2009. The events will serve two purposes, initially to generate more income from the Company’s existing content resources and, secondly, to boost its image and relationship with readers, clients and business partners. Amarin Publishing Services Emphasis is consistently given to this area as it is an expanded business to generate added value to the Company through its publishing services for individual and corporate customers. Thanks to its comprehensive publishing operation that encompasses conceptual design, pre-press and f inishing as well as quality control in every step of the production process including editorial and printing functions, it can effectively satisfy customers’ quality requirements in a comprehensive manner. At the same time, it also helps fulf ill the potential of its technical resources and keeps the Company from industrial competition.

Printing Business

To maintain high-quality printing works, Amarin continues to give priority to the development of printing technology and human resources. Accordingly, a new plot of land at a strategically located site not too far from the existing printing house was acquired to accommodate the future growth of the printing business. Construction of a new facility will begin in accordance with the Company’s business expansion plan.

Dear Valued Shareholders

Amarin Printing and Publishing Public Company Limited is poised to integrate its two businesses, where possible, to ensure its overall growth in a new world of business. It is my intention, shared by my fellow colleagues at Amarin, to create good reading media that are of value to Thai society. Together, we will dedicate ourselves to help grow the reading market and develop our content-based business which still has a tremendous value-added potential. Amarin Printing and Publishing Company Limited takes this opportunity to express its appreciation to its shareholders, customers, investors, business partners and many more contributors who have consistently supported and followed its performance. Our sincere thanks also go to our management and staff for their cooperation in adopting the guiding corporate culture established by Amarin’s late founder, Khun Chukiat Utakapan, to appreciate our customers, colleagues and our work. The society and all concerned can rest assured that Amarin will remain a professional enterprise bent on conducting the business for the happiness and prosperity of the society. There is no doubt in my mind that Amarin will continue to enjoy a stable and lasting growth as envisioned in Khun Chukiat Utakapan’s resolve, that “We will work for the happiness and prosperity of our society” because we are part and parcel of the Thai society.

Metta Utakapan Chairperson and President


22

ANNUAL  REPORT  2008


23

ANNUAL  REPORT  2008

Report of the Audit Committee

The Shareholders’ General Meeting approved the appointment of three independent directors of the Board of the Directors to the Audit Committee. Mr. Wathanyu Na Thalang who chaired the Committee was joined by Mr. Charoenchit Na Songkhla and Mr. Somchai Phagaphasvivat as members of the Audit Committee with Mr. Samart Pojanapanichkul acting as its Secretary. The Audit Committee has fulf illed its duties and carried out all the responsibilities assigned by the Company’s Board of Directors in compliance with the regulations of the Stock Exchange of Thailand. In the 2008 accounting year, the Audit Committee called a total of f ive meetings, all with full committee members’ attendance, with the management, the Company’s Auditor and internal auditors respectively to discuss and review the following matters: 1.  Reviewing the Company’s quarterly and annual f inancial statements for the year 2008: members of the Audit Committee attended related meetings where they questioned the Company’s management executives and discussed with external auditors and the Accounting and F inance Director on the credibility of f inancial statements, the adequacy of disclosed information and acknowledgement of the observations and recommendations made by the Company’s auditor for the year 2008 to ensure that they also comply with the generally accepted accounting standards; 2.  Inspecting the Company’s internal control system: to assess its suitability and effectiveness that would help the Company to fulf ill its set business objectives, it took into account the 2008 Internal Control Report in tandem with approved plans which covered the Company’s major operating systems. As a result, no signif icant weakness or flaw was detected; 3.  Examining the Company’s internal auditing procedures in order to assess its effectiveness: it considered the Internal Audit Off ice’s mission, its scope of duties, responsibilities and independence, human resources and budget. It also reviewed its charter to bring it up-to-date with the situation according to the SET Manual of Internal Audit Guidelines. In addition, it approved its 2008 auditing plans including trainings for members of the Audit Committee and auditing personnel. It was the opinion of the Audit Committee that the Company’s internal auditing procedures was adequate, suitable and effective, that it has continued to comply with international standards in maintaining its auditing quality development both in terms of personnel and auditing procedures; 4.  Scrutinizing the Company’s compliance with laws pertinent to securities and the stock market,  SET regulations and other rules and regulations that are relevant to its business, it also ensured that it  complied with the Company’s code of practice and commitments with external interests. The Audit Committee concluded that no factor of signif icance in terms of non-compliance of laws and regulations and its commitment to external interests was found; 5.  Scrutinizing and making recommendation on related transactions or any other transaction  (s)  that may be cause of conflict of interest and information disclosure relating to such transaction  (s) in accordance with the regulations set forth by the Securities Exchange Commission and the SET, the Audit Committee agreed with the views of the Company’s auditor and concluded that items of signif icance have been disclosed and the F inancial Statements and Note to the F inancial Statements were correct, complete and of optimal benef it to the Company’s operation; 6.  Selecting and proposing the appointment of and remuneration for the Company’s auditor for 2009  to the Board of Directors of Amarin Printing and Publishing Public Company Limited for approval at  the 2009 Shareholders’ General Meeting: the Audit Committee, following its review of the performance, independence and remuneration appropriateness, recommended the appointment of Ms. Prapasri Leelasupa, License Number 6977, from A.M.C. (Accountants and Management Consultants Co., Ltd.), as the Company’s auditor for the year 2009. In doing so, it concluded that:


24

ANNUAL  REPORT  2008

- The Auditor has no connection whatsoever with the Company or its subsidiaries; - During the past accounting year, the individual performed a commendable job independent of any influence with knowledge and professional competence, making recommendations relating to the Company’s internal control system and other risks; - The proposed remuneration for the auditor was appropriate at Baht 550,000. On the whole, the Audit Committee has fulf illed the obligations as stipulated in the Company’s Board-of-Directors’ approved Audit Committee Charter. It views that Amarin Printing and Publishing Public Company Limited has an accurate f inancial and operation report, an appropriate and effective internal control system and internal audit, compliance of laws, regulations and commitments, accurate disclosure of related transactions. In this regard, the Company has managed an operation that is consistent with adequate, transparent and credible corporate governance, and with an ongoing operating system development plan for quality enhancement appropriate for its environment.


25

ANNUAL  REPORT  2008

The Policy and Mission of the Audit Committee The Audit Committee’s policy and mission is to serve as a vital tool or mechanism to ensure that the Company has adopted the Principles of Good Corporate Governance. Its obligations and responsibilities cover the followings: 1. To ensure that the Company has an accurate and adequate f inancial statement; 2. To ensure that the Company has an internal control and internal audit system that is appropriate and effective; attest the independence of its internal auditors and approve the appointment, transfer and termination of the head of the Internal Audit Unit or any other units accountable for internal audit; 3. To monitor the Company’s compliance with existing laws and regulations governing the operation of public companies, e.g. Securities Act and Stock Exchange’s regulations and other relevant commercial laws; 4. To screen, select and nominate an individual who has proven his or her independence to be the Company’s auditor; propose auditing fees and attend the management-free meeting with the auditor at least once a year; 5. To scrutinize related transactions or any other transactions that may be cause of conflict of interest to ensure that they comply with SET’s rules and regulations and that such transactions are reasonable and of utmost benef it to the Company; 6. To prepare a report, certif ied and signed by the Chairman of the Audit Committee, as part of the Company’s Annual Report; the report must be supported at least by the following information: 6.1 Opinions on the credibility, accuracy and completeness of the Company’s f inancial report; 6.2 Opinions on the adequacy of the Company’s internal control system; 6.3 Opinions about its compliance with laws pertinent to securities and the SET, SET regulations or laws governing the operation of public companies; 6.4 Opinions about the suitability of the Auditor; 6.5 Opinions on items that may be cause of conflict of interest; 6.6 The number of the Audit Committee’s meetings and attendance of each member; 6.7 Overall views or observations it received as a result of its Charter-based performance; 6.8 Other items deemed appropriate, under the scope of duties and responsibilities assigned by the Company’s Board of Directors, to bring to the attention of the shareholders and investors at large; 7. To perform and carry out any other duties and tasks as assigned by the Company’s Board of Directors and consented by the Audit Committee.


26

ANNUAL  REPORT  2008

Corporate Governance Compliance Report Corporate Governance Policy

APRINT through its Board of Directors recognizes the importance of conducting its business in strict adherence to the principles of corporate governance aimed at strengthening an effective and transparent system, boosting its competitive ability and enhancing the conf idence of shareholders, investors and other stakeholders. To meet those requirements, it follows the Code of Best Practice stipulated by the Stock Exchange of Thailand (SET) for listed companies’ directors. At the same time, its Board of Directors is responsible to ensure that the operation is carried out in accordance with its rules and regulations under the terms and laws and regulations governing the operation of public companies. It is also obliged to def ine the Company’s business direction, to ensure that the management carries out its duties with integrity and accountability in compliance with its policy and enhance the effectiveness of its corporate governance procedures. The Audit Committee is appointed to oversee its accounting system, audit and internal control systems as well as related operating systems to make sure that they are accurate, effective, credible and transparent. APRINT’s Corporate Governance Policy covers the following areas:

Shareholder Rights

In compliance with the principles of good corporate governance involving fair treatment of investors and stakeholders, APRINT takes into account their rights and encourages them to exercise them while violation or abuse of rights in any form is discouraged. Thus, as required by laws, SET regulations and the Company’s rules, matters of importance are put forward in the agenda of annual meeting for shareholders’ consideration and approval. Invitations with a copy of the Company’s Annual Report and a proxy form are sent to all its investors 14 days prior to the meeting to allow the latter to have enough time to study the information before they attend the meeting. Announcements of the Shareholders’ General Meeting complete with details of the date, time, venue and meeting agenda in Thai and English are published in newspapers as a routine practice. At the Shareholders’ General Meeting, the shareholders have the liberty to question related director (s) and voice their opinions on every item under discussion; queries and comments of signif icance are documented in Minutes of the Meeting to allow further examination by the shareholders.

Other Stakeholder Rights

APRINT recognizes the rights of all stakeholders, be they debtors, creditors, business partners, competitors, writers, translators, government off icers or representatives of related interests to fair treatment under the laws and regulations pertaining to their rights.

Shareholders’ Meeting

APRINT meets its shareholders once a year in its General Shareholder Meeting within four months of the close of accounting cycle. All the shareholders are treated fairly as each receives notices of the meeting with details of agenda of the meeting complete with comments of the Company’s Board of Directors, proxy appointment form and the list of independent directors for them to delegate their power to a particular individual to act as their proxy in the meeting. The invitation letter also attaches a map to the venue of the meeting 14 days prior to the meeting. The letter includes details of identif ication document the shareholders need to retain their right. Enough time is allocated to the meeting to give equal opportunity and right to shareholders to air their views and question related members of the Board of Directors including the Chairperson, Chairman of the Audit Committee, Managing Director and


27

ANNUAL  REPORT  2008

all the Directors present to take queries from the floor. Major opinions and issues raised are duly documented in the Minutes of Meeting for shareholders’ scrutiny.

Leadership and Vision

Members of the Company’s Board of Directors are qualif ied individuals with leadership and vision. They take part in laying down the Company’s policy, strategies, objectives and business plans and together oversee the performance of the management to ensure that it complies with the approved policy and business plans to the highest standards, that it continues to expand the Company’s operational policy by enhancing its technology and human resources development, making relevant strategic amendment to have its products diversif ied in accordance with its line of business and growing its market share through new magazines and publications with diverse contents in pursuit of its commitment to creating what is good for families and the society based on its dedication statement: “We Will Work for the Happiness and Prosperity of Our Society.”

Conflict of Interests

To mitigate the likelihood of conflict of interests, careful management guidelines have been adopted by the Board of Directors whereby policies and the process governing the approval of related items involving the Company, its subsidiaries and joint ventures are clearly specif ied in writing. Compliance of the rules and regulations as mandated by the Stock Exchange of Thailand is also in place both in terms of pricing and terms and conditions akin to the business transactions conducted with outside interests. What related items of importance is disclosed with details pertaining to the value of related transactions, contractual parties, rationales and necessities in the Annual Report and form 56-1 for information disclosure.

Code of Ethics

The Board of Directors adopts as its operation policy accuracy, fairness and honesty in its treatment of the Company, employees, the public at large and every group of stakeholders. It is committed to things positive and correct and maintains neutrality, is at liberty to present news and information. All these form the basis of code of business ethics for the Management and Employees Committee as the Board of Directors monitors the consistency of ethics compliance and determines disciplinary punishment in case of violation of ethics.

Check and Balance by Non-executive Directors

Of the APRINT’s nine-member Board of Directors, f ive are directors with executive role while one is non-executive and non-independent member with the remaining three being independent non-executive directors or the equivalent of 33.33% of the entire board members.

Remuneration for Board Members and Management Executives

The Company has adopted clear and transparent policy on remuneration for its directors. Remuneration is comparable to industry standards, and proposed remuneration guidelines are approved each year at the Company’s annual general shareholder meeting. In 2008, remuneration for the four independent and external directors who are non-executive directors amounted to Baht 1.28 million while Executive Directors are only entitled to their monthly salary and regular bonus. The individuals are listed below in accordance with their roles and responsibilities.


28

ANNUAL  REPORT  2008

Name 1. Mr. Wathanyu Na Thalang 2. Mr. Charoenchit Na Songkhla 3. Mr. Somchai Phagaphasvivat 4. Mr. Smat Ruangnarong Total

Title Independent Director and Chairman of the Audit Committee Independent Director and Member of the Audit Committee Independent Director and Member of the Audit Committee External and Non-executive Director

Baht 385,000 385,000 385,000 120,000 1,275,000

In 2008, Executive Directors serving on the Board of Directors were compensated a total of Baht 18.58 million in the form of annual salary and bonus for their usual staff and executive roles.

Meetings of the Board of Directors

The number of Board meetings has been scheduled for the whole year in advance. Additional meetings may be called depending on the nature of contingency, e.g. the meeting to follow up on the Company’s operating results. The Company’s Corporate Secretary sends each director a notice letter of the meeting and supporting documents including the meeting agenda at least seven days before the day of the meeting to get the directors prepared for the meeting. In 2008, the Board of Directors met f ive times while the Audit Committee also met in f ive meetings. The Company maintains copies of the Minutes of Meeting endorsed the Company’s Directors so they can be retrieved for future reference. Names of Participating Directors 1. Mrs. Metta Utakapan 2. Mrs. Supawadee Komaradat 3. Mr. Cheewapat Na Thalang 4. Ms. Rarin Utakapan 5. Mr. Smat Ruangnarong 6. Mrs. Suphap Noi-Um 7. Mr. Wathanyu Na Thalang 8. Mr. Charoenchit Na Songkhla 9. Mr. Somchai Phagaphasvivat

Executive Board of Directors Meetings Audit Committee Meetings # of Meetings Attendance # of Meetings Attendance

5 5 5 5 5 5 5 5 5

5 5 5 5 1 1 1 1 1

5 5 5 5 5 5 5 5 5

1 1 5 5 5

Committees

Committees such as the Audit Committee were set up with the names of their members and roles def ined in accordance with the specif ication of management structure to assist in the Company’s compliance of corporate governance.

The Board of Directors Report

APRINT Board of Directors is responsible for its f inancial statement and those of its subsidiaries and for all other f inancial information which appears in the annual report. Such f inancial statements are prepared in consistent with the generally accepted accounting standards, scrupulously deliberated in conjunction with the Auditor’s Notes to verify that its f inancial statements are generally accurate in accordance with generally accepted practice and the disclosure of important information is suff iciently explained in the Note to F inancial Statement based on full factual information.


29

ANNUAL  REPORT  2008

Relations with Investors

The Board of Directors recognizes the importance of disclosure of accurate, full and transparent information to stock analysts and disclosure of f inancial and general information as well as other signif icant information that may affect the price of its stock to investors, analysts and all related parties via the SET Community Portal (SCT) and the Company’s website - HYPERLINK “http://www.amarin.com” Investors and stock analysts are also given the opportunity to visit the Company to assess its current and future operating prospects.

Internal Control and Audit Mechanisms

The Board of Directors appreciates the importance of maintaining an effective internal control system at both the executive and operating levels. Guidelines on the scope of responsibilities and operating authority of the operatives are clearly def ined in writing with the Company’s Internal Audit Off ice taking charge of reviewing all its operating systems to ensure that the main operation and important f inancial transactions strictly adhere to the specif ied guidelines in the Company’s policy of business operation. Reviews of its compliance of relevant laws and regulations are also conducted to ensure its implementation of good corporate governance. The Structure of the Board of Directors comprising three committees including: 1. The Board of Directors as of 31 December 2008 was made up of the following nine members: Name Position 1. Mrs. Metta Utakapan Chairwoman 2. Mrs. Supawadee Komaradat Director 3. Mr. Cheewapat Na Thalang Director 4. Mrs. Suphap Noi-Um Director 5. Mr. Smat Ruangnarong Director 6. Ms. Rarin Utakapan Director 7. Mr. Wathanyu Na Thalang Director 8. Mr. Charoenchit Na Songkhla Director 9. Mr. Somchai Phagaphasvivat Director 2.Twenty two management executives as of 31 December 2008 included: Name 1. Mrs. Metta Utakapan 2. Mrs. Supawadee Komaradat 3. Mr. Cheewapat Na Thalang 4. Ms. Rarin Utakapan 5. Mr. Praphan Prabhasavat 6. Ms. Nuanlchan Supanimit 7. Mr. Theeratorn Sang-ngeon 8. Ms. Titaya Nilrungsee 9. Ms. Achara Taesuwan 10. Ms. Uraiwan Soontornhong 11. Mr. Ongaj Jira-on 12. Ms. Tanaree Pimparu

Position President and Chief Executive Off icer Senior Executive Vice President Executive Vice President and Managing Director: Printing Business Division Executive Vice President and Managing Director: Publishing Business Division Deputy Managing Director: Publishing Business Division Deputy Managing Director: Publishing Business Division Asst. Managing Director: Printing Business Division Asst. Managing Director: Printing Business Division Advertising Director (1) Advertising Director (2) Editorial Director: Book Department Accounting and F inance Director


30

ANNUAL  REPORT  2008

13. Ms. Bussapakes Wongchaoum 14. Mr. Buncha Wongthongcharoen 15. Ms. Pattrawan Poltawekiat 16. Ms. Ampawan Boonchouy 17. Ms. Wararat Sornsrivichai 18. Ms. Benjaraj Pattanaviroj 19. Mr. Dhanakit Wanapoonphol 20. Mr. Theerapat Chandawongsa 21. Ms. Chuthamas Smitanont 22. Mr. Amornrat Akkawat

Administration Director: Printing Business Division Director: Human Resources Department Editorial Director: Amarin Publishing Services Director: President’s Off ice Director: Marketing and Brand Communication Director: Creative & Event Director: Business Development Director: Production, Printing Business Division Director: Sales, Printing Business Division Director: Quality and Technology System, Printing Business Division

3. Four directors were on the Audit Committee as of 31 December 2008: Name Mr. Wathanyu Na Thalang Mr. Somchai Phagaphasvivat Mr. Charoenchit Na Songkhla Mr. Samart Pojanapanichkul

Position Chairman Director Director Secretary

Authority, Duties and Responsibilities of the Board of Directors

1.  To set the Company’s overall direction and strategic goals; consider and approve the Management’s proposed operational targets; oversee and supervise the management’s execution to ensure that the executives implement the approved policies effectively and eff iciently in order to add economic value to the Company and its investors; 2.  To draw up the Code of Conduct for the business and the Code of Ethics for directors, executives and employees as the practical guidelines for the organization; 3.  To monitor the Company’s operations to ensure that its executives and those on the management comply with relevant laws and regulations; 4.  To arrange for effective internal control and internal auditing mechanisms; 5.  To monitor the Company’s executives to ensure implementation of effective risk management procedures covering all risk factors including risks pertaining to liquidity, investment, market, operation, reputation and law, and carry out regular reviews of policies and strategies; 6.  To appoint Executive Directors, Audit Committee and other Committees as deemed appropriate and required to supervise management systems in accordance with established policies; 7.  To delegate a director or several directors to carry out any given function on behalf of the Director; 8.  To consider the roles and responsibilities of various Committees and substantial changes in their scopes of power and duties; 9.  To ensure that there is a check-and-balance mechanism over the management and/or major shareholders to keep their roles at an acceptable level with importance given to the proportion or the number of independent directors on the Company’s Board of Directors; 10.  To have a system of providing the Board of Directors with adequate information so that its performance fulf ills its authority and responsibilities; 11.  To make sure that Board members attend at least half of the year’s scheduled meetings; 12.  To hold Board Meeting at least once every quarter in a location where the head off ice is sited or its branch off ice or nearby provinces;


31

ANNUAL  REPORT  2008

13.  To consider or make amendment to the Board’s authorized signatory in committing the Company in any business transaction; 14.  To determine the remuneration paid to Board members within the framework approved by the Shareholders;

Board of Executive Directors

The Board of Executive Directors as of 31 December 2008 comprised the following individuals: Name 1. Mrs. Metta Utakapan 2. Mrs. Supawadee Komaradat 3. Mr. Cheewapat Nathalang 4. Ms. Rarin Utakapan

Position President& CEO Director Director Director

The Responsibilities of the Board of Executive Directors

1.  To def ine the Company’s investment strategy in new businesses; 2.  To make approval of annual budget; 3.  To monitor the Company’s operation to ensure its compliance of corporate policy; 4.  To ensure that risk management policies and procedures are established; 5.  To make sure that a policy, process and system for effective internal control is adopted; 6.  To report the Company’s key operating results, management performance and that of the Executive Directors and management supervision to the Board of Directors; 7.  To determine remuneration and other privileges including compensation for the company’s employees. 8.  To determine remuneration and other privileges including compensation for directors and top executives based on clear and transparent criteria.

The Scope of Authority and Responsibilities of the Audit Committee

The Audit Committee’s policy and mission is to serve as a vital tool or mechanism to ensure that the Company has adopted the Principles of Good Corporate Governance. Its obligations and responsibilities cover the followings: 1.  To ensure that the Company has an accurate and adequate f inancial statement; 2.  To ensure that the Company has an internal control and internal audit system that is appropriate and effective; attest the independence of its internal auditors and approve the appointment, transfer and termination of the head of the Internal Audit Unit or any other units accountable for internal audit; 3. To monitor the Company’s compliance with existing laws and regulations governing the operation of public companies, e.g. Securities Act and Stock Exchange’s regulations and other relevant commercial laws; 4. To screen, select and nominate an individual who has proven his or her independence to be the Company’s auditor; propose auditing fees and attend the management-free meeting with the auditor at least once a year; 5.  To scrutinize related transactions or any other transactions that may be cause of conflict of interest to ensure that they comply with SET’s rules and regulations and that such transactions are reasonable and of utmost benef it to the Company;


32

ANNUAL  REPORT  2008

6.  To prepare a report, certif ied and signed by the Chairman of the Audit Committee, as part of he Company’s Annual Report; the report must be supported at least by the following information: 6.1 Opinions on the credibility, accuracy and completeness of the Company’s f inancial report; 6.2 Opinions on the adequacy of the Company’s internal control system; 6.3 Opinions about its compliance with laws pertinent to securities and the SET, SET regulations or laws governing the operation of public companies; 6.4 Opinions about the suitability of the Auditor; 6.5 Opinions on items that may be cause of conflict of interest; 6.6 The number of the Audit Committee’s meetings and attendance of each member; 6.7 Overall views or observations it received as a result of its Charter-based performance; 6.8 Other items deemed appropriate, under the scope of duties and responsibilities assigned by the Company’s Board of Directors, to bring to the attention of the shareholders and investors at large; 7. To perform and carry out any other duties and tasks as assigned by the Company’s Board of Directors and consented by the Audit Committee.


Printing techniques: 4/C process and foil stamp


green production


Publishing Business Printing Business


37

ANNUAL  REPORT  2008

Publishing Business Traditionally, Amarin’s Publishing Business concentrated its resources on publishing magazines and books before it expanded its business, based on the concept of “Content Business”, to other income-generating undertakings including organized tours, training, events, television programs and websites with “quality” at the heart of every undertaking.

Magazines

For more than three decades of its unwavering determination since the day Baan Lae Suan was premiered, the Company remains single-minded in the production of high-quality magazines. “Praew” and “Praew Sudsapda”, the two women’s magazines that followed, were testimonies to that commitment; both magazines continue to enjoy supportive readerships until the present day. During Thailand’s economic downturn in 1997, the Company turned its attention to publishing more health-related magazines such as “Cheewajit” and “Health & Cuisine”. Four years later, it acquired the copyright to publish the Thai-Edition of the world-renowned “National Geographic”. “room” followed in 2003 with “WE” in 2004. More copyrights to publish other magazines were acquired in the respective order of “Real Parenting” in 2005; “SHAPE” in 2006; “In Style” in 2007 and f inally the latest addition, “Secret”, in 2008. Today, its magazine portfolio boasts a total of 12 bi-monthly and monthly titles to serve the diverse interests of its readers. Baan Lae Suan Thailand’s Most Popular Magazine among Home Lovers www.baanlaesuan.com The Company’s f irst magazine that continues to be in circulation today features knowledge on homes, decoration, landscaping and gardening, living atmosphere and environment as well as tips on the trend of home decoration and design trend pertaining to lifestyle, hobbies and art works. Today, “Baan Lae Suan” enjoys the highest circulation of any magazine in its market segment, making it the country’s best-selling home décor magazine. Praew An Inspiring Magazine for Modern-day Women www.praew.com A magazine for modern-day working women, Praew is informative and entertaining with contents including fashion, news and movements on the social scenes, matters women should know, health, beauty, serialized novels, interviews, travelogues, arts, f ilms and so on. Sudsapda Young, Smart & Sophisticated www.SudSapDa.com “Not just a guide, but we are friends” f its in well with this bi-monthly magazine for new generation, teens and youngsters who always keep themselves abreast of new fashions and au courant with current developments. Its rich contents vary from interviews to lifestyle, in-depth features to entertainment columns and overseas news round-ups to keep the readers inspired and grow into a quality generation.


38

ANNUAL  REPORT  2008

Cheewajit A New Health Alternative Read It, If You are Unwell; Read It Even If You are Well www.cheewajit.com Thailand’s best selling bi-monthly health magazine, Cheewajit serves as a forum for healthcare providing health tips, knowledge on preventive medicine, rehabilitation and therapy. Based on the notion of holistic medicine that involves the treatment of the whole person – taking into account the body and mind, social as well as environmental factors - rather than the physical symptoms alone, Cheewajit presents its rich contents in a modern, relaxed and light-hearted style, yet practical for the readers’ to adopt for their everyday life since they are nature-based to ensure one’s tip-top physical and mental health. Health & Cuisine Ref ining Taste, Ref ining Life www.HEALTHandCUISINE.com Dedicated to food for health, Health & Cuisine offers readers tips and tested recipes. This is an “Inspiration for Healthy Living” magazine for modern-day women as it responds to the present-day lifestyle in which caring for one’s well being is the priority in life. From food to health, the information is simple and easy to apply. No wonder, it offers an alternative for those who are looking for the good things in life. National Geographic (Thai Edition) Satisfy with the World of Wonders www.NGThai.com This magazine takes family members to explore the vast wide world of nature and creatures from every corner of the globe. National Geographic (Thai Edition) offers a wide range of in-depth coverage of science, geography, history, nature, art and culture, tradition, archaeology, ancient civilization and other creatures on the face of the earth. Therefore, it is a “magazine that resembles a knowledge bank; the more you read it, the more worthwhile it will be for you and yours.” room The Bible for the Joy of Decorating Every Space of Your Dwelling www.roommag.com Reading the “room” is like talking to an understanding interior designer. It is superior with informative contents that respond to the lifestyle of the new generation. The features are accompanied by colorful pictures with angles of differences, presenting what is factual and practical. It opens the decorative perspectives that f it each individual’s style. “room” therefore enables the readers to decorate their living space like a pro in an entertaining way. WE For Those with Love in Their Hearts www.WE-MAG.com True to the slogan “Love, Wedding & Living Together”, WE is like a friend that helps turn one’s wedding day and the beginning of a married life into an impressive, perfect and memorable experience with smart wedding ideas and tips on how to keep the marital relationship a happy one.


39

ANNUAL  REPORT  2008

Real Parenting The Real Manual for a Balanced Life of Modern-day Parents www.real-parenting.com Real Parenting is Amarin’s f irst mother and child magazine to serve modern-day parents with children aged 0-12 years old like a real manual for a balanced life. Readers benef it from its knowledge- rich contents and advice as well as accounts of real-life experience from other mothers to help them raise their children with conf idence, be it health, children’s psychology, learning patterns or development. In terms of contents and tips for an ideal relationship, this is a magazine that truly responds to the needs of modern-day parents, taking into account the adapted contents that can best f it in with the Thai way of family life. Shape Smart, Active, Life, Style www.shape-thai.com Another monthly magazine for modern-day women who live an active lifestyle, Shape supports a fresh, enthusiastic and active lifestyle in every aspect of today’s life. Readers will be inspired to spend more time on a wider range of activities and exercise to keep them in shape. In Style Fashion, Beauty, Celebrity, Lifestyle www.instyle.co.th Amarin’s latest women’s magazine, In Style features the stylishness of every aspect of life, be it fashion, beauty, lifestyle or celebrity charity activities that benef it the society. In Style is an American magazine. Today, it is the country’s most successful magazine, thanks to its distinct and entertaining presentation. Until now, it has helped women develop a positive attitude toward styles and the way they live their lives. Secret The Secret to Happiness and Success www.secret-thai.com Secret is served up as a spiritual food for the country’s entire population; it inspires and serves as the hope for life and a refuge for the mind through its simplif ied, entertaining and inspiring contents that help the readers f ind the real happiness and success in life.

Books

www.amarinpocketbook.com As a result of the importance it gives to every group of readers, the Company set up editorial teams to oversee the production of its aff iliate imprints to allow the business to grow alongside magazine publication. “Praew Books” became the f irst publishing house when it premiered the effort in 1992 with the production of a broad range of pocketbooks including literary works, short story and poetry. Today, 14 such publishing houses are in charge of producing books that are consistent with its core value of “quality” to satisfy customers’ interests. The books produced are diverse in range from those promoting children’s cognitive development to those on health, food, home decoration, landscaping, gardening and a lot more to meet the different requirements of readers of all ages and genders.


40

ANNUAL  REPORT  2008


41

ANNUAL  REPORT  2008


42

ANNUAL  REPORT  2008

Praew Books Praew Books features mostly literary works by authors of varying styles and genres in a broad range of contents and forms including short story, poetry, f iction, feature and entertainment. Praew Books is committed to promoting the merits of thinking, writing and reading which serves as a cornerstone upon which responsible awareness in the socio-political, economic and cultural milieus is raised. Founded in March 1992, it launched its debut publication, “The Flesh and Blood of Democracy, a Tribute to Heroes” as a Praew’s ad-hoc imprint before the publishing house began publishing pocketbooks in earnest with Prarn Pramool’s “Doo Nang, Doo Lakhon” – “Seeing Movies, Seeing Plays” as its f irst publication. Praew Children Books This publishing house is dedicated to producing quality children books to enhance their cognitive development and imaginative thinking. It also organizes campaigns and activities to promote good reading habit, the very foundation for children’s future education. Praew Juvenile Books Specialized in literature for juvenile and like-minded readers, Praew Juvenile Books selects well-acclaimed books from around the world and present them in beautifully translated Thai language. It also encourages local writers to create good literary works for Thai youth with “Babe Hmu Liang Ghae” – “Babe … the Sheep - Pig” being its f irst publication. During its initial stage, Praew Juvenile Books adopted the line of “Imagination, Fun Reading” as it publishing concept. The publications during the f irst f ive years of its operation therefore featured a mixed range of literary works that were fun to read, rich in imagination, content, knowledge and morality aimed at provoking new creative thinking in the youth. It eventually expanded its readership by selecting educational publications for elementary and secondary students. Since then, Praew Juvenile Books’s direction has changed to “Learning alongside Imagination”. Health Clinic Books This aff iliate imprint seeks to provide health-conscious readers with highly practical knowledge on holistic healthcare that they can adopt for a healthy body and mind. Praew Globetrotters The publishing house produces informative and entertaining travel guidebooks for new generation as they are ideal for those passionate about adventures and are ready to discover new experiences rather than “jumping on the bandwagon” because they believe travel is a lifestyle. Despite their meager income, they will save for their travel plans to overseas places, widen their horizons, increase their learning and exchange views with the people they meet on the way. Amarin Dharma Books Easy to understand reading based on religious teachings geared toward social good sums up the characteristics of Amarin Dharma Books. The contents of these publications are practical, simple for the readers to apply to their day-to-day life. Indeed, the enterprise is to directly accommodate a growing market which has shown increased and ongoing interest in books of this genre and inspire members of society to lead a happy life.


43

ANNUAL  REPORT  2008

Amarin Books A publishing house focusing on high-quality scholarly books with reliable and accurate contents that can serve as reference, yet presented in such a way that tediousness which is common with scholarly readings is nowhere to be seen, the publications published by Amarin Books are therefore ideal for readers with interests in social sciences, ethnicities, art and culture, language, history and other scholarly work, Who’s Who, or those preferring non-f ictions. Cuisine Books This publishing house produces books with comprehensive culinary contents and information in varying presentational formats including cook books, cooking tips, nutritional information and in-depth discussion on food-related art and culture. Its publications are noted for their contents of quality recipes through extensive menus. Readers can apply the practical recipes, thoroughly tested with an “All Tested Recipes” logo on the front cover, to their own cooking routine. Arun Books Arun Books is in the business of publishing entertaining and thought-provoking novels by well- known authors. It made its début in 1998 with the appearance of Kingchat’s “Buang Honge”. The author, Kingchat, subsequently entrusted all her novels to Arun Books for publication. Other authors whose works are published by Arun Books include Prapassorn Sewikul, Keerati Chana, Piyaporn Sak-kasem, Chutharat and Sirima Abhijarin, among others. Amarin Comics Books Publications by Amarin Comic Books are creative and beautifully presented with illustrations. Their knowledge-based and interesting anecdotes make ideal reading for people of all genders and ages, in particular the Thai youth with an appetite for educational reading. Baan Lae Suan Books The publishing house is dedicated to publishing how-to books for home care and decoration, gardening, decorative and flowering plants in colorful and tasteful presentation. They not only make easy reading but also provide reference-worthy knowledge suitable for people passionate about home care and horticulture. Praew Magazine Books Praew Magazine Books brings to the reading public books of informative and entertaining nature with wide-ranging topics from beauty to trendy fashion. Based on the contents and feature stories of the popular Praew bi-monthly magazine, the books also include real-life stories and thoughts by well-known personalities from different social circles. National Geographic Books Publications under National Geographic Books present to the readers the unending world of knowledge with National Geographic Society’s century-old repository of wisdom. It boasts a vast selection of captivating non-f iction titles covering various topics, from exploration to adventure to art and culture, human civilization and lives in the wild told compellingly by world-renowned explorers and writers.


44

ANNUAL  REPORT  2008

How-To Books The latest in its series, How-To books cater to members of the new generation to help them cope with their life and spiritual development with contents that respond to angles specif ic to their way of life including life-skill development, jobs and jabs of morale boosting. For those readers who are prepared to try something new and novel and geared toward working themselves to success in their career and personal life, How To Books’ publications will surely make for ideal reading. Amarin Publishing Services One-Stop Publishing Service Amarin Publishing Services makes its printing services available to both the individual and corporate clients as it accept external printing orders. Its publishing operation encompasses every step of the production process including conceptual design, pre-press and f inishing and distribution function. It can also help coordinate with Amarin Book Center in book sale if the clients so desire. The services, based on the customers’ highest level of satisfaction, are therefore comprehensive, capable of accommodating consumers’ growth. Information Center Systematically documented, the Company’s records of intellectual property were initially reserved for the use of various editorial teams through the Information Service. This was subsequently expanded to serve the entire organization as well as those from its subsidiaries. Today, the service is also available to the public with a set fee for information search service.

New Media

Amarin Training Learning for Better Living Courses are held to meet professional objectives and activities organized for recreational purposes. For all these activities, speakers in specialized areas are engaged and trainees can apply their learning experiences to their craft development, vocational enhancement and hobbies. The courses are delightful and entertaining, designed for trainees to use their free time to benef icial and valuable ends. Amarin Tour The Ultimate Experience with Amarin Tour Its organized tours to domestic and overseas destinations are diverse in nature, covering history, art and culture, health, gourmet and adventure, tailored to the specif ic requirements of corporate and individual clients. Amarin Media A tripartite production effort involving Amarin’s magazines - Health & Cuisine, Cheewajit and Shape, “Health Club” features health related contents in a “Health Talk”, a Q & A session with the “1 Minute with Guru” and “Club Recommend”; the program is aired every Thursday from 03.45 - 04.00 pm on Channel 7.


45

ANNUAL  REPORT  2008

Printing “Amarin Printing Partnership Limited” was established in 1976 and occupied only small space in shop houses located on Arun Amarin Road. Prior to “Amarin Printing and Publishing PLC” printing business, all of its personnel has built up their experience and expertise in every aspect of printing, printing quality and services. Until now, the reputation of “Amarin” is well accepted both locally and internationally as the country’s leading printing house. “We aim to produce quality publications that meet customer’s satisfaction.” The company proudly takes part in creating high-quality publication which is not only to raise Thailand printing industry standard but also to serve educational and intelligence aspects in Thai society. With the intention and dedication of our highly caliber employees from experience artisan to those who graduated directly in printing science and technology, training, continuous research and development, giving high priority to investment in state-of-the-art technology machines and instruments, robust information technology and modern organizational management, these have caused the company’s printing business to receive ISO 9002 Industry Standard for all of its production processes on March 12th, 1999 which is an excellent assurance for standard and eff iciency of its production processes which will lead to high-quality work that meet every customer’s satisfaction. Readiness in Every Step of Production Process With its comprehensive printing services, Amarin Printing and Publishing PLC provide the full-range printing services. The customer’s printing matter will be closely taken care of and assured quality from experience personnel in every steps from editorial >> design >> illustrated photographing >> computerized color and pictures editing >> typeset and proofread >> art work and layout design >> photographing and f ilm arranging >> plate making >> printing >> binding >> packaging and distribution. With the readiness in every aspect, the Company’s printing house is ready to provide flawless services in each step of the production process and with complete printing business through its quality examination and production standard control to meet customer’s needs and satisfaction. Pre-press With the most up-to-date electronic equipments and computers that are not only to keep up and to fulf ill meticulous and complicated skill design but also create complete new intuitiveness, creative and imagination. In addition, the Company also provides Graphic Design and Digital Color Proof with trusted standard color matching and most importantly has continuous production procedures in order to achieve high-quality printed matters. Printing Production Process With modern printing technology and computerized printing control, the Company’s printing process using different types of printing press from 1 color to 5 colors proceeds with eff iciency both in terms of time and quality. The company’s printing press are well maintained and regularly taken care together with continuous humidity and temperature control system which helps increasing printing eff iciency and helps creating outstanding printing quality.


46

ANNUAL  REPORT  2008

Post Printing High-quality printed matter will enter into post printing processes which are folding, binding, and page making both paperback and hardcover by using the most recent automatic machine. The company’s product’s quality control and completeness examination in every step ensure f ine and perfect work. Packaging and Distribution After every production process has been completed, there is f inal quality inspection on every product before it will be neatly packaged ready for safe and on-time distribution to customer both locally and internationally. Besides, the company also offers distribution service and marketing for customer’s printed matters in every channel through its aff iliates (Amarin Book Center Co., Ltd.). Database and Other Special Services The company also offers complete database service which helps the customer to gather information both contents and illustrations in every format. This will ensure that the customer can reprint, edit or add value to their original works by producing in modern electronics media such as CD and Internet.


Printing techniques: 4/C process, spot uv and foil stamp


growth


Review on Business and Competition Trend


51

Trends in Printed Media Business

ANNUAL  REPORT  2008

Printed media and packaging business in 2008 shows a value of 300,000 million Baht. Growth rate in the f  irst 10 months was comparable to 2007 but decreased considerably in November and December. Economic challenge and political situation were the main factors contributing to 30% decrease in printed media consumption categories of magazines, books and advertising publications, while paper and packaging manufacturing dropped 25-30% due to corporate budget cuts in printed media, e.g., New Year card, calendar, diary, wrapping paper, etc. It is estimated that printed media and packaging business in 2009 will shrink by 1-3% as a result of economic risk factors in an economy experiencing a continual slow down since last year, as well as changing consumer behaviors such as greater communication and searching through the Internet. Statistics show that at present about 15.4 million people have access to the Internet, a 15% increase from 2007.

Advertising Business

The current economic crisis has a worldwide impact. Companies with unstable businesses or newly established companies as well as SMEs are forced to quickly adjust their operation plans. Instead of launching new products or activities that only generate short-term income, the focus is on sales volumes of already existing products and services. Inevitably, there will also be budget cuts on advertising and other public relations activities. The total value of advertising business in 2008 was 89,488 million Baht, dropping from 2007 by 2-3%. However, there was no change in the order of the top 5 major media segments, namely, television media which accounts for 57.15% and is worth 51,136 million Baht, newspaper media accounting for 17.09% at 15,288 million Baht, radio media accounting for 7.75% at 6,933 million Baht, magazine media worth 5,823 million baht, and other media such as outdoor media at 4,216 million Baht, media in cinema at 4,173 million Baht, mobile media at 1,360 million Baht and in-store media at 560 million Baht. It is estimated that the advertising business in 2009 will shrink by 4-5%, with all the major media segments facing diminished growths. However, it is likely that advertising on BTS will grow due to the government’s policy to increase the number of sky train route. Multi-media advertising has also increased its presence in department stores and modern trade channels.

Magazine Business

The magazine business in 2008 experienced the same growth rate as in 2007 but the economic challenge and the political situation during the last quarter of the year had a direct impact on maga- zines whose main income depended on the advertising fee, seriously disrupting their normal issue cycles. The magazine business in 2009 will likely follow the trend in the wider the economy. Leading magazines were able to maintain their market shares. Some smaller magazines had to cease or face operations shut down. Nevertheless, the failures accounted for only a small percentage of the whole business. Some financially stable market leaders with enough capacity may take this opportunity to widen their market shares by launching new magazines to fill the gap left by the small players.

Book Business

The book business in 2008 was worth roughly 16,000 million Baht representing a 7-8% growth. Political and economic challenges had minor effects on this segment. Educational comics, documen- tary, novels, spiritual, health and psychological development are categories with the highest sales growths.


52

ANNUAL  REPORT  2008

Competition remains strong for the book business in 2009, especially for the segment that benef  ited from last year’s growth. Publishers will keep focusing on publishing new books in the main cash-generating categories as well as reaching target groups by means of marketing campaigns.

Strategy for Publishing Business

To handle the decelerating economy, the Company has applied the so-called “Integrated Solution Provider” strategy which utilizes the Company’s strengths and expertise both in areas of content and a large, high potential, customer base from many channels which include magazine readers and subscribers, book readers, fair and marketing event visitors, tours and training courses customers, television program audiences and new media customers. The Company is committed to adding value and reaching these customers with integrated solutions. Moreover, the Company maintains a continuous policy in research and development in order to study readers behaviors to be able to predict their tendencies which may change over time. Through this strategy the Company will be able to respond accurately to the needs of its customer base-both readers and advertising buyers.

Amarin Group’s Magazines

The Company has maintained its commitment to provide readers and subscribers with feature and entertainment contents through quality-packed magazines catering for the needs of all customer groups. In 2008 the Company launched a new magazine “Secret”,a concept magazine devoted to secret for happiness and success, pioneering a new spiritual health category-which received a warm welcome right from the beginning. 1. Women and fashion category-ranking first in terms of market share, Praew Magazine accounts for 19.97% of the total market. An international title, In Style, also experienced a continued growth with a market share of 7.15%, and was regarded as the No. 1 personal stylist for all women readers. 2. Teen-early working age leisure category-with the current market share of 12.64%, Sudsapda Magazine continues to grow with its expanded content and trend updates covering matters of interest to young women readers. 3. Home, gardening and decoration category-Baan Lae Suan and room Magazines are leaders in this category, with a combined market share that takes more than half of the category, the market shares are 38.52% and 18.72% respectively. 4. Health category-best seller Cheewajit Magazine maintains its first position with 67.66% market share. 5. Food and health category-Health & Cuisine Magazine leads this category with 36.14% market share, providing tips on health and well-being and cooking for good health. 6. General knowledge and features category-top selling National Geographic Thai Edition enjoys the largest market share at 25.06%, providing features of current interest and fascinating features from around the world. 7. Love and marriage category-with 40.37% market share, WE Magazine ranks f irst in the category, providing a unique coverage from pre-marital stage, marriage and post-marital life. 8. Family and children category-Real Parenting Magazine, accounting for a 15.06% market share, features practical advices for balanced lifestyles of modern parents with children aged 0-12 years. 9. Health and beauty category-recognized as No. 1 manual on health and beauty for women, SHAPE Magazine enjoys a leading position with 48.0% market share.


53

ANNUAL  REPORT  2008

10. Spiritual health category-with its f irst issue in July 2008, Secret Magazine enjoys a continuous sales growth and a rapid increase in the number of readers and subscribers.

Amarin Group’s Book Publishing

Recognizing that good reading habit is an essential foundation and to help elevate the quality of the Thai society, the Company is committed to publishing throughout the year quality books that are beautiful literary works which are also able to instill knowledge and happiness. Through research and development our aim is to publish books that meet the needs of each target group. Amarin Dharma Books Amarin Dharma Books aims to present easy to read Dharma which will help sustain good virtues and moral principles and books on practical Dharma for the new generation by quality authors. Best selling titles are the Top Secret, Einstein Pob Praputtajao Hen, Kerd Praw Kama Rue Khwam Souy and Khon Samran Ngarn Samred. Amarin How-To Books Amarin How-To Books publish books covering a wide variety of subjects ranging from self- development, career, finance and business administration. Each title is thoroughly edited for ease of understanding and practicability. Best sellers include The Secret, 30 Witee Aow Chana Chok Chata and Kot Haeng Krajok. Amarin Comics Books Amarin Comics Books publish educational comics for readers of all ages. With nice colorful drawings, the comics books provide useful ideas and bits of knowledge suitable for reading and studying by Thai children. Best sellers are Phra Maha Kassapa’s comic version book, Phra Sungajayana’s comic version book and Quiz Science. Praew Books Praew Books publishes Thai literature, translated literature, short stories, poetries, f ictions, essays and light works with the aim to encourage thinking, writing and reading activities-considered essential foundations for the conscience of society. Best selling titles are The Happiness of Kati, Khwam Fun Un Soong Sud Phoo Kong Can, Tokyo Tower and The Historian. Praew Globetrotter Books A series of travel guides full of useful information and entertainment. The books offer great learning experience and inspirations to travel. Best selling titles are Berng Lao, Xin Chao Viet Nam, Long Rak Iran and J-Pan-Spec-Tive. Praew Juvenile Books The publisher selects books for juvenile from leading authors to build a strong reading founda- tion for Thai children. Among the best selling titles are Century 1, Things You Should Know About The Human Body, 100 Things You Should Know About Inventions and Charlotte’s Web. Praew Children Books Praew Children Books publishes quality books for children, aiming to enhance the imagination and spark learning development. The publisher also organizes events to foster family relationship by encouraging parents to read aloud to children to stimulate their intellectual, emotional and moral potentials. Best selling titles include E Leng Keng Kong, Kra Duk Kra Dik, Kra Dok Kra Dak and Nong Mhee Len Kab Phor. Amarin Health Books Dedicated to sharing knowledge on physical and mental health which can be applied to everyday life. Best selling titles are Roob Rang Souy Douy Yoka Pai Nai 30 Wun, Kin Yang Tee Chob Kor Pom Dai and Chun Pa Tad…Tua Eng.


54

ANNUAL  REPORT  2008

Arun Books Arun Books publishes quality novels by leading authors. Best selling titles are Saab Phra Peng and Kluen Luang. To expand a new customer base, the Arun Un-Ai-Rak Books was established targeting customers with the concept “warm love stories to fill the heart with sweetness”. The f irst novels were well received by teen readers. Top sellers are Kamadeva Chaolay and Phayak Rai Warn Jai. Amarin Cuisine Books Amarin Cuisine Books offer books on healthy cuisine ranging from Thai, international, desserts and drinks. All recipes were carefully chosen and tasted to guarantee deliciousness and to make sure that they are practical and easy to cook. Best sellers are Kin Deum Tarn Mareng, Menu Arharn Sukkaparb 30 Wun and Easy Chinese Cooking. Amarin Books Amarin Books focuses on social science and humanities titles that are verif  iable, credible and can be used as reference. Best sellers are Hai Ngern Tam Ngarn, Newton Physics and Dictionary Korean-Thai and Thai-Korean. Baan Lae Suan Books The leader in books on home, gardening and decoration, its publications features gardening and landscaping, home decoration, house and room design, Thai and foreign botanical compendia and tips on construction. Best selling titles include Suan Lark Style, Hong Nam 4, Bangkok Small and Chic Homes 2 and 30 Mum Suan 2. National Geographic Books National Geographic Books offers a variety of knowledge for the whole family, covering subjects like geography, science, history, civilization, etc. Best selling titles are The Great People in the World Volume 2, Earth Pulse, The Mysterious Rituals of Ancient Civilization and Theories for Everything: An Illustrated history of science from the invention of numbers to string theory.

Great Fairs of the Year

The Integrated Solution Provider strategy focuses on Amarin Group’s strengths and expertise in contents with value added to comprehensively reach target customers. The Company intends to develop the contents into the more tangible annual cycle of fairs which provide direct experience for the ever-growing number of visitors. Baan Lae Suan Fair 2008 The 9th annual home and garden exposition-the biggest in the country-was co-hosted by Baan Lae Suan Magazine and room Magazine during October 28-November 2, 2008 from 9.30 am to 9.00 pm, at Challenger Hall 2 and 3, Impact Muangthong Thani. This year the “Green Home Effect” theme was introduced through a demonstration house. Attendees were fascinated by exhibitions on architecture, plant selection for gardening, home decoration using materials and concepts that help preserve nature, all of which were presented under the concept of “Reduce, Reuse, Recycle and Renewable”. 7th Amarin Book Fair A Fair for book lovers, the 7th Amarin Book Fair was held at Ballroom Hall A, Queen Sirikit National Conference Center, July 30-August 3, 2008. Complete with quality books and entertainment and knowledge activities in a festive atmosphere, the Fair’s concept was “Reading in the Park”. Books from the 14 imprints Amarin Group Book Publishing and other allied publishing houses were available in the event. A special event was organized to present the “Reader Icon” award to celebrities in many fields who were recognized as model readers. Also during the Fair, winners of the Amarin


55

ANNUAL  REPORT  2008

Genius Competition open for students of primary and secondary schools in Bangkok Metropolitan are a were also presented the awards for each category. 4th Health, Cuisine & Beauty Festival By far the country’s best health, cuisine and beauty fair, organized by Amarin Group’s health magazines, i.e., Health & Cuisine, Cheewajit and SHAPE, the event took place during September 3-7, 2008 at the Plenary Hall, Queen Sirikit National Convention Center. With over 20 million Baht in budget, the event drew more than 100,000 visitors and almost 300 partners accepted the invitation to reserve exhibition space. The Festival also received good response from new health conscious visitors whose number grows by more than 10% every year.

Other Businesses

Continuous successes in printed media gave rise to other businesses where expertise in contents is being presented through more tangible experiences. Amarin Tour From “The Service You Can Trust” concept-encompassing expertise, experience and quality services-to premium domestic and international travel arrangements by professional tour leaders and the experienced staff, Amarin Tour offers favorite, time-tested, itineraries and a team of agents who are ready to advise and recommend tailor made programs to suit individual groups’ schedules and needs. The tourism industry in 2008 was hard hit by crises as early as the f  irst quarter, from the troubled economy followed by Nargis cyclone in Myanmar to the sharp increase in oil price. The second quarter saw the Thai-Cambodia dispute over Preah Vihear temple. The third quarter was hit with global foreign exchange fluctuations. The last incident near the end of the year was the shut down of Suvarnabhumi Airport by anti-government protesters which resulted in the cancellation of all tours. Nevertheless, Amarin Tour managed to grow by 30% from 2007 through its custom designed tour programs for individual groups. Amarin Training This new line of business was operated under the “Learning for Better Living” concept. On offer are courses and seminars providing instructions to improve living standard in all aspects, namely, health and beauty, design and decoration, cooking, professional skills and self-development in various f  ields. Amarin Training can provide specialized instructors, organize seminars and give advice on designing appropriate courses based on customers’ requirement. Amarin Television Amarin Television presents its body and mind health contents under the “Delivering all answers to health questions straight to your home” concept through “Health Club” program. The program by Health & Cuisine Magazine, Cheewajit Magazine and SHAPE Magazine is on air every Tuesday on TV7 from 4:15 pm to 4:30 pm, featuring useful information and Q&A opportunity on health during “Health Talk”, “1 Minute You Can Do”, and “Club Recommend” sessions. Amarin Publishing Services Amarin Publishing Services was established in response to the increasing demand on tailor- made services. The Company is responsible for the contents production, design, layout, printing and distribution to customers. With the expertise in magazines and books production and existing contents, the Company extends the business for further growths and developments. These services contribute to the full utilization of all machinery. The Company’s potential has resulted in good customers reception for the business. Creative & Event Realizing the potential in the area of large scale trade fair and exhibition with an almost 10 years


56

ANNUAL  REPORT  2008

track record, coupled with experienced staff, the Company took a further step in 2008 to establish a full-fledged Creative & Event Provider. The new business started with successful designs and organizations of the Anti-Violence Exhibition and the Say No To Violence Against Women Exhibition, projects under sponsorship by HRH Princess Bajrakitiyabha. New Media The continued success in printed media business has paved the way for the on-line contents presentation that permits digital media presentation of knowledge and entertainment in response to growing demands and market direction. The company is ready to further reach out to various target groups by adding values to the contents of 12 leading magazines and 14 publishing houses. The 18 quality websites serve as on-line advertising media with coverage on advertising, creative work and entertainment.


57

ANNUAL  REPORT  2008

Printing Business About the business

A 32-year experience has made Amarin printing house one of the biggest and most advanced printing facilities capable of producing attractive and highly prized publications. By combining art with the latest publishing technology, the full-service Printing Business can turn imagination, creativity and customer requirements into high quality publications that satisfy every need in any customer segment. Efficient management, advance production technology, accurate quality control, attentive and highly experienced personnel, and the long accumulated knowledge of the business have made us a true professional. The Printing Business is well respected in the printing industry and has received many accolades from a large customer base. Being the best in class for high quality printing, Amarin has been proudly nominated for major international publication awards every year.

Products and Services

The Printing Business produces high quality publications of all types including magazines, paperbacks, hardcovers, annual reports, advertising books, catalogs, pamphlets, posters, calendars, folders, brochures, etc. The full range of services cover creative consultancy, publication design, color separation, plate production, printing, binding and covering. Offered in a pleasant surrounding are quick turnaround time, a convenient customer reception area and well equipped customer facilities. Half of the capacity of the Printing Business is dedicated to the production of magazines and books by Amarin’s Publishing Business. The other half is available to external customers, both domestic and international. Our customers are government agencies, public enterprises, foundations, banks, private corporations, legal persons and general public including academics, teachers and artists.

2008 Operating Results

The Printing Business has been operating for 32 years, producing a regular and continuous stream of quality output and building up a reputation of excellence in the printing industry along the way. 2008 was a year of fierce competition for the printing industry. Thailand as a whole saw many adverse factors that affected businesses - the country’s internal political unrest and the downturn in world economy. Nevertheless, Amarin’s well conceived defensive strategic plan enabled the Printing Business to maintain an outstanding performance. Sales increased and continued to grow. Profits improved. Resource utilization was as efficient and as cost effective as possible. Amarin’s business strategy and policy for the Printing Business were set in anticipation of a highly competitive environment amid deteriorating economic conditions. Efficiency improvements were made in all operating units through operations management with the supports of new management tools. As a result, production costs were kept at a satisfactory level, the management of resources, equipment and personnel were also made cost effective. On the earning front, Amarin emphasizes the importance of services that satisfy the customers in order to keep the existing customer base. Expansion into new markets were made through a focus strategy that targeted high-end customers, corporate customers and private individuals. On offers were new value added products and products that tied in with and extended Amarin’s comprehensive data warehouse, all of which help differentiate and raise the perceived status of our products, keeping the interests in Amarin’s services and their demands current among all customer groups.


58

ANNUAL  REPORT  2008

Allowing staff to share responsibilities in their work resulted in greater affinity and commitment. Fostering positive attitudes toward colleagues and customers, and corporate social responsibility are principles that we practice with full conviction-in line with our vision “To be the leading printing  institution that makes customers, shareholders, employees, business partners and society happy at  all times.”

Industry trend and competitive direction

Although the increase in Internet media consumption has eaten into print media’s market share, the effect occurs only in some segments. High-definition printing, not replaceable by other types of media, remains in high demand. The segment-covering catalogs, brochures, annual reports, text books, reference books, magazines, paperbacks, documentaries and calendars-calls for high quality output and has been enjoying continuous growth. Moreover, the rate of total print media consumption in Thailand has also been increasing. The country’s present adverse economic and political situation inevitably affects the market and consumption thereby the commensurate changes in customer demands. In this light, the company has found it necessary to adjust strategy, preparing measures to deal with the highly competitive market scenario. The company has adopted a cost leadership strategy, aiming to become the lowest cost producer in the market-through increased eff  iciency, maximized productivity, optimized work flow using a management information system and an advanced planning and production management software that efficiently connects all components of the production chain in the organization, improving internal communications to achieve efficiency and precision, maintain high workers morale to maxi- mize staff potentials driving the company steadily forward to achieve the goal. The company will most definitely be concentrating on maintaining high quality services and on retaining the existing customer base. As for expanding into new markets, we look for customer segments with promising potentials. Our focus strategy targets VIPs, high-end and leading corporate customers. We offer new innovative products and creative design products that create more value- added. Our differentiation strategy makes our products more attractive, keeping Amarin in the minds of prospective customers should any demand arise. We have become a leader in contents business, being already well placed as the contents and data producer. The company also intends to expand into printing service, a broad and potentially prof  itable business segment with clear targets in the aforementioned customer groups. A direct offshoot from our existing data warehouse, the segment is one that Amarin has a strong advantage over competitors.


Printing techniques: 4/C process perforation and texture spot uv coating


bloom


Royal Literary Works Rewards Fairs & Launch Party Charity


63

ANNUAL  REPORT  2008

With accumulated long term experiences as publisher and distributor as well as trust from readers and the society, Amarin Printing and Publishing Public Company Limited (Company), as a consequence, has fully become professional in printing business with full pride. Meanwhile, the Company has concentrated on extending benef icial information, entertainment, and virtue for the society, through such activities as hosting competition on literary works, participating in fairs and exhibitions and activity on charity, to be in line with the Company’s slogan: “We Work For the Happiness and Prosperity of the Society”. These prides have been encouraging the Company to create ever-better works…because Amarin’s pride is to encourage everybody to be jointly proud with us.

Printing works of the Royal Household Printing works of royal literary works

The Company has greatly appreciated the royal kindness and trust as it has been granted royal permission all along to publish and distribute various royal works of His Majesty the King and the Royal Family.

Literary works and distribution of His Majesty the King’s royal literary works

In 1993, His Majesty the King graciously granted permission to the Company to publish and distribute his f  irst royal literary work entitled “Nai In Phoo Pid Thong Lang Phra” which His Majesty the King graciously translated from A Man Called Intrepid written by William Stevenson. He graciously delivered his second royal literarywork following year entitled “Tito” which he graciously translated from Tito written by Phyllis Auty. Both royally translated literary works have been widely acclaimed by Thai readers which could be witnessed from several times of the books being published with total sales turnover so far over 260,000 copies. They have been regarded as the country’s most popular hard covered translated literary works with all time high sales turnover. In 1996, the auspicious Royal Jubilee Anniversary (Karnchanapisek) of His Majesty the King, he graciously granted permission to the Company to publish and distribute another royal literary works, “Mahajanaka”, one of his important and valuable royal literary works with teaching principle. And it has been regarded as the Thai people’s highest auspice. He graciously adopted content of the literary work from Mahajanaka tale of previous life of the Buddha described in the Three Pitakas. He graciously adapted the content to suit current social conditions. The content concentrates on successful human living with amazing virtue, i.e. charisma on perseverance and forbearance. The “Mahajanaka” royal literary work has been published several times, in both big and small sized books as well as for both hard and soft covers. It is illustrated with beautiful pictures throughout the books. And one of the most crucial aspect is that His Majesty the King graciously granted permission to make Mahajanaka medals, which have been distributed together with the hard-covered book, which was published for the f  irst time, and small-sized hard covered books for subsequent publishing. Up until now, this royal literary work has been the country’s all time high sales turnover accounting to over 600,000 copies, with sales worth a combined in excess of one billion baht. On the auspicious occasion of His Majesty the King’s sixth cycle anniversary in 1999, His Majesty the King graciously granted permission to the Company to publish the “Mahajanaka” ’s comic version book. He graciously allowed Khun Chai Ratchawat, the country’s most famous editorial cartoonist who is regarded as expert artist, to draw the story in comic form. And His Majesty the King graciously allowed the Company to publish the comic version book in black and white with Thai papers for the sake of being economical and could be sold in cheap price (Baht 25 a copy). It was aimed at attracting people at large


64

ANNUAL  REPORT  2008


65

ANNUAL  REPORT  2008

from all sexes and ages, especially children and youths, to be able to read the books. As a consequence, the comic version royal literary work’s distribution has so far hit a record of almost 3,000,000 copies. In 2000, His Majesty the King graciously granted the Company permission to publish “Mahajanaka” four colour version. Khun Chai Ratchawat was the artist responsible for the project with watercolour technique. In addition, His Majesty the King also graciously granted permission to the Company to provide 1,000 coffee sets of Mahajanaka comic version for being specially distributed. Up until now, approximately 200,000 copies of the “Mahajanaka” four colour comic version books have been distributed. In 2003, His Majesty the King graciously granted permission to the Company to publish and distribute “Tongdaeng Story”, another royal literary work. He graciously recounted about “Tongdaeng” ’s history, a know-it-all of His Majesty the King’s favorite personal pet dog, as well as the dog’s gratitude. The dog has been renowned nationwide. “Tongdaeng Story” was published in hard covered copy with 84 pages, 17 × 25 centimetres in size, and over 100 beautiful sough-after four colour photos. It was published in good quality coated papers and was distributed at Baht 299 a copy. It was published for the f  irst time on 26 November 2003, with 100,000 copies which was sold out very soon. It has been repeatedly published. Up until January 2003, 10 times of the book were already published, accounting to 700,000 copies. It was the country’s best selling book in 2003. In 2004, His Majesty the King graciously granted permission to the Company to publish “Tongdaeng Story” in four colour comic version responsible by Khun Chai Ratchawat and members of his team. The 17 × 26 cm. book was published in soft cover. It was 180-page published with good quality coated papers and was sold at Baht 149 a copy. It was published for the f  irst time on 12 November 2004 with 100,000 copies. And it had been repeatedly published for 6 times in two consecutive months after the launch. Up until now, over 650,000 copies of the books have been published. Apart from the aforementioned 4 great royal literary works, His Majesty the King has also granted permission to the Company to publish his “Royal Speeches”. Contents of the book are excerpts from His Majesty the King’s royal speeches graciously delivered to various parties in various occasions, as well as his speeches on the auspicious occasion of his royal birthday anniversary for each past year which His Majesty the King graciously persevered to compose from pre-recorded royal voice. And the speeches were also translated into English. The book is not so thick. The cover is unique with white background and abbreviated Por Por Ror royal name in gold colour with blue coloured statements. The book is laced in the middle of the book with 17 × 24 cm. in size. The book also comprises four colour photos. It was His Majesty the King’s personal publication. Some copies of the book have been distributed to government off  ices and sold at Baht 120 a copy. The Company has been granted royal permission to publish “The Royal Speeches” royal literary work since 1994 with the f  irst book entitled “Royal Speeches Graciously Delivered to Various Parties on the  Occasion of His Majesty the King’s Royal Birthday on 4 December 1993”. Since then, His Majesty the King had been graciously delivering the royal manuscript of the speeches to the Company for being published every year. The latest royal manuscript was the royal speech graciously delivered on His Majesty the King’s birthday in 1999 which was published in December 2001. In 1999, Her Royal Highness Princess Maha Chakri Sirindhorn Foundation assigned the Company to do CD-ROM pertaining to “His Majesty the King’s Royal Speeches Graciously Delivered on Occasion of  the Royal Birthdays Between 1993 and 1998”, for being distributed for sale to general public both in Thai and English language versions. The Company has successfully done the project. It was the f  irst of its kind that His Majesty the King’s royal speeches were collected in CD-ROM format. With full appreciation that the Royal Family has been granting permissions and trusts to the Company to publish and distribute various royal literary works, the Company has been determined to dedicate itself to work royally and honestly for the Royal Family forever.


66

ANNUAL  REPORT  2008

Works on publishing and distribution of Her Royal Highness Crown Princess Maha Chakri Sirindhorn’s royal literary works

Her Royal Highness Princess Maha Chakri Sirindhorn Foundation, which was established for contribution to education for the underprivileged children and youths, has published Her Royal Highness Princess Maha Chakri Sirindhorn’s various literary works for distribution for fund raising. In 1981, the Foundation assigned the Company to publish Her Royal Highness Princess Maha Chakri Sirindhorn’s the f  irst literary work on occasion of her visiting foreign countries entitled “Visiting Dragon’s Land”. And throughout the past 27 years since then, the Company has been granted royal permission to publish her literary works of this series all along. The latest publication published in 2008, No. 49, was entitled “Visiting the Land of Overseas Chinese People”. Her Royal Highness Princess Maha Chakri Sirindhorn recounted a story on “Visiting the Land of Overseas  Chinese People”, which pertained to her visit to People’s Republic of China between 14 - 23 October 2002. During the trip, the Princess visited Beijing, Fuzhou, Fujian Province; Xiamen, Hainan Province; and Guangzhou, Guangdong Province, the home province of the overseas Chinese people who have been scattered to various lands, including Thailand. These groups of people are usually called “Overseas Chinese” people. The story was published in soft covered book with 14.50 × 21 cm. in size, priced Baht 250 a copy. It was marketed for the f  irst time in March 2008. Since 1995, the Foundation has assigned Amarin Book Centre Company Limited with trust to be distributor of Her Royal Highness Princess Maha Chakri Sirindhorn’s royal literary works on her visits to foreign countries as well as her other literary works. In addition, the Foundation has assigned the Company to jointly work out a project to publicize and distribute the royal literary works through internet or E-commerce via launching www.amarin.com/princessbook website since 25 July 2000. This E-commerce project has not only been channel of distribution of the royal literary works to be more complete and widespread to the public at large, it has also helped avid readers, students, youths and general public to study, conduct research and “travel to the world of intellectual” through valuable royal literary works and jointly contribute to Her Royal Highness Princess Maha Chakri Sirindhorn Foundation through ordering her literary works’ books which have been available all the time no matter where they live and for people both living locally and in overseas countries. And for the Company itself, joining this project has not been only the highest auspice and highly proud distinction for the Company, but it has also been vital business step forward for the Company to access to the endless internet world, as being mentioned by the late Mr. Chukiat Utakapan, the Company’s former. The late Chairman and Founder, who said during the launch of the E-commerce system for the royal literary works. His excerpt speech are as follows: “The Company regards today as the f  irst step to develop its business through internet and E-commerce. With intelligence and idea based on Thai culture, we are conf  ident that we do benefit to Thai people’s society everywhere with international standard”. In February 2002, Her Royal Highness Princess Maha Chakri Sirindhorn graciously assigned a college located in the inner zone of the Palace to publish a book entitled “Khanom: Tongdaeng’s Puppies” via assigning the Company to publish and distribute the book, of which the content recommends “Tongdaeng”, His Majesty the King’s renowned pet dog. Contents in the book also comprise “Tongdaeng” ’s photos graciously taken by His Majesty the King, as well as conferred photos of Tongdaeng’s 9 puppies with their complete histories. In addition, there is a section in the book exhibiting methods to do 9 Thai desserts whose names are Tongdaeng’s puppies names. These Thai desserts’ photos are also published. In 2003, the Company did CD-ROM and video discs entitled “Comfortably Cool Along the Waters”, to fulf  ill Her Royal Highness Princess Maha Chakri Sirindhorn’s wish. Contents of the CD-ROM and video discs were based on the Princess’ royal literary work while she graciously visited People’s Republic of China for the 7th time between 14 - 27 August 1996. It was the f  irst of its kind to contain contents of the royal literary work and motion pictures relating to the royal visit to foreign countries. They were combined into one set for distribution at Baht 399 a set. They were marketed for the f  irst time in December 2003.


67

ANNUAL  REPORT  2008

In 2005, Her Royal Highness Princess Maha Chakri Sirindhorn graciously established “His Majesty the King’s Grandmother (Somdej Phra Panwassa Aiyikachao) Foundation” to be responsible for establishment of the late Queen Savang Wadhana’s museum at the Great Mansion, Sra Pathum Palace. In June 2006, the Foundation, for fund raising, assigned the Company to publish and distribute sheet of “Family Tree of His Majesty the King”, tracing back from Thong Dee, the Royal Father, up to His Majesty the King. It was published in 68.50 × 99 cm. poster size, with coated four colour and being contained in a box priced at Baht 150 a box. It was published twice, accounting for 70,000 sheets. In September 2006, the Foundation assigned the Company to design chart on board and host an exhibition entitled “Tracing the King’s Hierarchy, Tracing Sra Pathum Palace’s History” at the Siam Discovery Centre in Bangkok to publicize history of the late Queen Savang Wadhana, Grand Mother of His Majesty the King. A book to commemorate the late Queen was published. It collects the late Queen Savang Vadhana’s history and photos as well as other relevant photos. It is 17 × 24 cm. in size with 176 pages, four colour, and priced at Baht 245. It has been published for 9 times with a combined 100,500 copies. In addition, the Foundation assigned the Company to publish and distribute annual diaries, beginning with “2006 Diary: Sra Prathum Palace’s Pets”, “2007 Diary: Sra Prathum Kitchen”, “2008 Diary: Under Sra Prathum  Palace’s Umbrella”, and the latest “2009 Diary: Sra Prathum Palace’s Lotuses”. “The Sra Prathum Palace’s Lotuses” diary is a diary collecting photos of lotuses graciously taken by Her Royal Highness Princess Maha Chakri Sirindhorn. Lotuses are symbols of the Sra Prathum Palace. The hard covered diary is concise in size with four colour, priced at Baht 295 a copy. Proceeds from the diary’s distribution shall be contributed to the late Queen’s Foundation in Sra Prathum Palace.


68

ANNUAL  REPORT  2008

Works on publishing and distribution of the late Her Royal Highness Princess Galyani Vahdana Krom Luang Naradhiwas Rajanagarindra’s royal literary works

The late Her Royal Highness Princess Galyani Vahdana Krom Luang Naradhiwas Rajanagarindra had assigned Amarin Printing and Publishing Public Company Limited to publish some of her literary works since 1982. The late Princess’ f  irst literary work published by the Company was entitled “Mother Recounts of the Story”, a soft covered copy. The Ministry of Education sought royal permission to publish the book to raise fund to contribute to the Late Princess Mother’s Garden Project. 500,000 copies were published. It was the all time high number of soft covered book ever published. After that, the late Her Royal Highness Princess Galyani Vadhana assigned the Company to publish her many more literary works pertaining to her extensive traveling, such as a book entitled “Stream of China’s Civilization: 7 Cities of Middle Era Kingdoms” (1988). It was one of the f  irst books in the series relating to the late Princess’ traveling. Other books included those entitled “Bhutan: Green Island on the Mainland” (1989), Turkey: Land of Kings of Roman and Sultans of Ottoman Kingdom (1990), “Xin Chiang and Gansu: Pictures From Land of Endless Sky” (1990), “Yunnan” (the second edition published in 1991), “Eastern China” (1994) and “Northeastern China and Sichuan” (1997). In addition, the late Princess also graciously granted permission to the Company to publish some of her literary works pertaining to the Royal Family. They included “His Royal Highness’s Postcards” (1992), “The Great Seal, Royal Lineage Seal, and Royal Letter Lineage and Abbreviated Names” (1992), “Prince Mahidol and Arts Works”, the late Princess’ dual-language royal literary work. (The first edition, Thai-English languages copy, was published in 1995 and the second edition, Thai-French languages copy, was published in 2006. She graciously granted permission to the Alliance Francaise Bangkok to translate her royal literary work into French). In 2004, the late Princess graciously granted permission to the Company to publish her latest literary work entitled “Royal Family, Royal Names of Royal Sons, Royal Daughters, Grandsons and Granddaughters”. The book collects complete list of royal names, photos, and brief history of royal sons, daughters, grandsons and granddaughters of King Chulalongkorn the Great. It was published in hard cover with 15.50 × 22.30 cm. in size and 666 pages priced at Baht 600 a copy. It has been marketed since October 2003. The Company had opportunities to publish the late Princess’ 2 key royal literary works pertaining to the late Princess Mother’s demise and her royal cremation ceremony, including those entitled “Folks’ Chronicles” (1996) and “Sending Off the Late Princess Mother to Heaven” (1997), which relates to the late Princess’ perseverance to collect news pertaining to the late Princess Mother’s demise and her royal cremation ceremony published in various newspapers for several days. The late Princess also noted down additional remarks in some parts of the book. Apart from printing, the late Princess also graciously granted permission to the Company to distribute her some royal literary works since February 1996 which was the great kindness to the Company. Although passing away since 2 January 2008, the late Princess had graciously granted her kindness to the Company in publishing her literary works all along. The late Princess’ kindness shall clearly appear in the Company’s every employee’s mind. They shall remember and adore the late Princess’ kindness forever.


69

ANNUAL  REPORT  2008

Publishing works and distribution of books in accordance with Her Royal Highness Princess Bajrakitiyabha’s initiative

Her Royal Highness Princess Soamsavali is graciously Honorary Lifetime President of the Friends In Needs of “Pa” Volunteers Foundation, Thai Red Cross Society. Her Royal Highness Princess Bajrakitiyabha is the Foundation’s Chairperson. Princess Bajarakittiyabha graciously initiated to publish “Recipe of the Friends In Need of (Pa)” book to be guideline for supplementary careers. The Princess earlier graciously implemented a project to help rehabilitating victims of f  loods, according to royal initiated Suff  iciency Economy Philosophy. Recipes were based on home grown vegetables in the project. The f  irst issue’s recipes were worked out by Mom Luang Nueng Nilrat, a court chief of Her Royal Highness Princess Saisavali Bhirom, Consort. And the second issue’s recipes were worked out by Mom Luang Sirichalerm Sawasdiwat, whose nickname is more well-known as McDang. In addition, Her Royal Highness Princess Soamsavali graciously granted two personal recipes. Both recipe books were published and have been sold in cheap prices. The “Morale Support Project Under Royal Initiative of Her Royal Highness Princess Bajrakittiyabha” was established to lend assistance to groups of drugs addicted youths, young prisoners, female prisoners, children and youths committing culprits, and other underprivileged groups according to judicial proceedings. In so doing, The Princess hoped to help these group of people to refrain from repeatedly committing wrongdoing and extend opportunities for them to quality people again as well as to return to live peacefully in the society. Apart from the project, the Princess also graciously suggested guidelines to publicize the project’s activities and public relations activity. She also graciously granted permission to the Company to publish and distribute “Morale Support” diary, which was published twice in 2008 and 2009.

Works on books honoring the Royal Family

Works on books honoring the Royal Family is another Company’s pride. The Company was earlier assigned to design and publish “Pathum Garden Palace’s Plants” book to honor Her Royal Highness Princess Maha Chakri Sirindhorn’s 50th anniversary. The Company was also assigned to design and publish “Saeng Nung” (literally means solo light) and “Is Rung Ngam” (literally means beautiful rainbow) books to commemorate the late Her Royal Highness Princess Galyani Vadhana Krom Luang Naradhiwas Rajanagarindra’s 84th anniversary.


70

ANNUAL  REPORT  2008

Awards “Beyond Awards is Opportunity” th

The 9 Nai Indra Awards, 2008 25 July 2008 Convention Halls 1-2, Amarin Corporate Park

Another creative forum for writers to express their ability, the Nai Indra Awards is intended to encourage a new generation of Thai writers to produce and publish their quality works for Thai society. In 2008, the 9th Nai Indra Awards were won by the following winners under the four specif  ied categories. Best Illustrated Children’s Book: Hud Cheuai by Kanokwan Lekdamrongsak; Best Novel: Krong Manute by Pojjanart Pojjanapakorn; Short Story: Doi Ruag by Natthee Sasivimol; Best Poetry: Rau Yhu Khon La Phark Kawng Poobha by Tuanjit Nawatarang Chindhanate


71

ANNUAL  REPORT  2008

The 5th Chukiat Utakapan Awards, 2008 Thursday, 29 May 2008 Convention Halls 1-2, Amarin Corporate Park

To broaden the range of the Chukiat Utakapan Awards, the nature of the Awards was altered in 2008 when social dimension was included as part of the award consideration. Rather than awarding winning publications, the Awards was to recognize individuals or organizations with records of learning support that resulted in extensive life and social development, continued dedication in the advancement of one’s working circle, a role with positive impacts over the learning culture, society and people’s quality of life as well as socially recognized achievements. In 2008, the award-winner was Acharn Juladhas Payakaranont, Associate Member, Off  ice of Arts, the Royal Academy, who has played an extensive role in the country’s artistic scenes as an expert in traditional Thai art and a special lecturer at the Department of Thai Arts, Faculty of Painting, Sculpture and Graphic Arts. At the Award Presentation Ceremony, a number of Thailand’s most respected artists turned up to congratulate the winner with the celebrated Khru Chaeng Klaiseethong, a National Artist in Performing Arts (Thai Music), giving a recitation of sebha-a form of Thai ballad, which was written by Khun Paiwarindr Khao-ngarm. Meanwhile, a discussion under the topic “Thai Way-The Artistic Flame-The Teacher’s Spirit” was also held in honor of the award winner.


72

ANNUAL  REPORT  2008

Fair and Launch Events The Launch of Thai Folklores Book Series 21 May 2008 Grand Hall, Ground Floor, Siam Discovery Center

Accompanied by HRH Prince Dhipankara Rasmijoti, HRH Princess Srirasmi presided over the launch of Thai Folklores Book Series. On this occasion, she also visited the “Thai Folklores, Thai Artists for Thai Children and the World” Exhibition and Praew Children Books Booth. Other activities included story-telling and discussion by well-known artists and members of the Working Committee which became all more captivating with the participation of Thailand’s forefront artists including Prof. Preecha Taothong, Mr. Chai Ratchawat, Mr. Dheerawat Khanama; Acharn Chintana Piemsiri, Assoc. Prof. Dhinnakorn Kasornsuwan, Assoc. Prof. Dheerawat Ngarmcheuachit, Prof. Prayad Pongdam, Acharn Krirkbura Yommanark, Acharn Netikorn Shinayo, Assoc. Prof. Prai-won Da-klieng, Khun Suradej Kaewdhamai, Assoc. Prof. Pitsanu Suppanimitr, Acharn Preeda Panyachandr, Acharn Cheewan Wisaa-sa, Ms. Anusara Dee-hwai and Ms. Suthasinee Suppasirisindh.


73

ANNUAL  REPORT  2008

The Launch of “Secret”: The Secret to Happiness and Success   8 July 2008 Amarin Corporate Park

Simple yet friendly, the launch of this new magazine featured an unusual concept of: “The Secret to Happiness and Success”. “Secret” has been positioned as the soul mate of the Thai people, designed to inspire and serve as a refuge for the mind. Through its easy to read contents, “Secret” is far from being st  i  f  l  i  ng, given its entertaining overtone. It is also inspiring helping the readers to discover real happiness and success in life. Readers will gain from the insights of a host of regular contributors who have been all been highly regarded for their literary feats while well- known personalities add their colorful outlooks as guest contributors.  

WE  Are  in  Love

22 - 24 February 2008 Fashion Hall, Ground Floor, Siam Paragon Celebrating its 4th anniversary, WE hosted the “WE Are in Love” Fair to reiterate its continued leadership in its market segment. The three-day “WE Are in Love” Fair featured a diverse range of wedding ideas to satisfy every lover’s dream for a f  lawless wedding party. Celebrity lovers took the stage to share their lovely anecdotes of romance and the Lovers of the Year for the “WE Vote” Award was announced on this occasion.


74

ANNUAL  REPORT  2008

The Launch of The Top Secret

by Dentist Som Sujeera, Amarin Dharma Books 13 March 2008 Fashion Gallery, Siam Paragon The Top Secret, a publication featuring a combination of dharma, science and psychology, endeavors to explain the secret to success represented by emotional scenes, something already known to the world’s genius but has until recently could f  ind no comprehensible explanation. For Dentist Som Sujeera, the launch gave him the f  irst experience to go on stage in a stand-alone talk show in the heart of a huge department store.

A Healthy Start the Cheewajit Way 5 July 2008 SCB Park Plaza, Ratchadapisaek Road (Ratchayothin)

On its 10th anniversary, Cheewajit put together an event that involved more than 1,000 health-conscious people in the Healthcare the Cheewajit Way Festival which boasted a stick exercise festival, the largest of its kind in 2008. It was joined by the Thai traditional small puppet performance from Aksara Theatre and a battalion of actors and actresses including Fresh - Arisara, Cream - Premsinee, Un - Bhuwanart Khunpalin, Kai - Pasit, Jessie - Danai and Froys - Natthapong as well as ten nationwide Cheewajit Clubs. A lecture on “Liang Puai, Hnee Khae, Goo Nae Maa Sib Bhee” -Dodging Ailment, Avoiding Aging, I’ve Bested Them All over the Past Ten Years was a crowd-puller while Acharn Satis Indrakamhaeng dazzled his fans with his harmonica tunes.   


75

ANNUAL  REPORT  2008

The Book Launch of Jack Welch Lae Soo Chaichana - Jack Welch Winning 22 July 2008 Fashion Gallery, Siam Paragon

It was in July that How - To Books introduced the translated version of Jack Welch Winning, a title that the world-class Superstar CEO himself penned. The Launch was graced by such successful guest speakers as Khun Chalotte Tonavanik, Khun Ton Passakornnatee, Khun Thongchai Bussarabhand who were present to bare Welsh’s strategies which they themselves have adopted to make their own management successes.

Amarin Super Genius Project June - July 2008

Praew Juvenile Books set out on a roadshow to 15 elementary and secondary schools where it introduced and involved students in the challenge of the intriguing number games featured in KEN-KEN Game Book. Winners from the challenge represented their schools in a two-day semi-f  inal round at Amarin Book Fair on 2 - 3 August 2008 to contest for the Disneyland Package Prize, Recognition Plaques and education grants.


76

ANNUAL  REPORT  2008

Amarin Book Fair 2008 “Reading in the Park”  

30 July - 3 August 2008 Ballroom, Hall A, Queen Sirikit National Convention Center It has become customary for Amarin to feature a national-level fair every year. In 2008, for the 7th consecutive year, Amarin Book Fair was held to give book lovers the opportunity to pick their favorite items from a comprehensive range of publications on offer under one roof. In the spirit of “Reading in the Park”, an indoor park was practically created as a place for fair visitors to rest, relax and enjoy a variety of informative and entertaining activities. The Ballroom, meanwhile, was turned into a huge bookshop in the area designated as Book Hypermarket Zone where Nai Indra Bookstore satisf  ied readers’ appetite with a vast selection of more than 2,000 items of quality publications from Amarin’s 14 publishing houses and its 25 partner printing houses. For the f  irst time in the country’s publication history, the latest Amarin Book Fair saw the introduction of what was dubbed the “Reader Icon” Project in which Honor Awards were presented to personalities from different areas of profession based on their involvement with books in their everyday life either for study or research before putting what they have learnt into writings of their professional orientations for the benef  it of the society at large. Nui - Sujeera Aroonpiphat, Nadia - Vichita Nimitvanich, Paul - Bha  tarapol Silapacharn, Ruj - Subharut Techatanont (The Star 4) were represented as those Reading Icons.

The 4th Health, Cuisine & Beauty Festival

3 - 7 September 2008 Plenary Hall, Queen Sirikit National Convention Center Under the concept “Fun Shopping for Health, Food and Beauty”, Health & Cuisine, Cheewajit and SHAPE, the three celebrated magazines in Amarin Group, jointly featured one of the best health fairs in town with good comprehensive activities for health and beauty enthusasts.


77

ANNUAL  REPORT  2008

The Top Secret Roadshow

6 September 2008 The Auditorium, Phuket Girls School, Phuket To further expand the success and celebrate the sale of more than 150,000 copies of Top Secret in less than one year, Amarin Dharma Books took Top Secret on a roadshow along with Dr. Som Sujeera’s “The Secret to Success” Talk Show to a welcoming audience of over 500 book fans and members of the press in Phuket.

The Launch of The Last Lecture by Amarin HOW-TO 7 October 2008 Fashion Gallery, Siam Paragon

Truly a launch of an internationally-acclaimed bestseller which is already available in 30 languages, the Thai version of the Last Lecture was translated by Nu Dee - Vanisa Race. The Launch itself saw an impressive turnout of successful individuals from different circles to talk about the book and the content of Randy Pausch’s Last Lecture, the man who changed the world. It was concluded in style with a remarkable lecture “Living a Living Life” by Noo Dee.


78

ANNUAL  REPORT  2008

Baan Lae Suan Fair 2008 Green Home Effect 28 October - 2 November 2008 IMPACT, Muang Thong Thani

It was the 9th consecutive year for Thailand’s most admired home and garden exhibition when Baan Lae Suan featured the 2008 Fair. The highly successful Baan Lae Suan Fair 2008 represented the unfailing support of the public since its inception in 2000, thanks in part to its consistent format improvement to ensure that the Fair remains the very center of creative and comprehensive designs for lovers of home and garden, true to a magazine that was born for home and decoration which, after 33 years of existence, continues to retain its leadership in the same market segment. Its pioneering role in bringing model homes, gardens and related decoration techniques to the fair is still one of a kind in the business of home and garden exhibition.


79

ANNUAL  REPORT  2008

Charity 5th Sudsapda Shopping Market

8 November 2008 Central World Square, Zone A Prompted by the enthusiastic response of the Sudsapda Shopping Market, Amarin Printing and Publishing Public Company Limited on behalf of “Sudsapda” thus planned a grand event for 2008, the f  ifth in the series with the participation of artists, actors and actresses, celebrities and more than 100 participating booths. As has been customary with this annual event, the announcement of the “Sudsapda Young & Smart Vote 2008” served as the highlight of the event when prizes were presented to recipients in 17 categories including artists, actors and actresses, event hosts, models and people from different walks of life for their social roles and their successful products by readers’ votes.


80

ANNUAL  REPORT  2008

SHAPE Run Thailand 2008 30 November 2008 Queen Sirikit National Convention Center

Following the success of SHAPE Run Thailand 2007, SHAPE (Thai Version) took upon itself the corporate role of making contributions to social cause. Hence, the health-based fund-raising event, SHAPE Run Thailand 2008, was held with the participation of more than 1,200 women. Proceeds (before cost) from the events were to support the National Cancer Institution, Medical Department, for its activities in the f  ight against cancer which is the #1 killer responsible for the deaths of Thai women every year. Indeed, it is for this reason that the event was designed, to help campaign against cancer and provide women with education on the danger of breast cancer while urging them to pay more attention to health and engage in physical exercises. SHAPE Run Thailand 2008 was honored by the participation of Benz - Pornchita, Pat - Napapha, Ja - Jittabha, Joy - Sunansa, Cheer - Thikhamporn, Ja Ja - Primrata, Yui - Jeeranant, Nadia, Koi - Ratchawin and Pinkie - Sawika, the 10 winners of 2008 Healthy Woman Celebrities who were joined by Lome - Patchata, Paw - Tissadee, Boy - Pitsanu, Hwaan - Dhanakrit and Aud - Suppanat, the f  ive male heartthrobs who helped thrill the event with their presence, distributed drinking water and provided the needed morale support at water distribution stops along the event trail.


Printing techniques: 4/C process, emboss and spot uv


teamwork


Amarin Team Staff Welfare Internal Activities Environment Management


85

ANNUAL  REPORT  2008

Amarin Team In 2008, the Company has over 1,000 staff members as a large family at a house called Amarin Corporate Park by the Bangkok Noi canal. The Company is divided into publishing and printing businesses to create high quality job. In the Publishing Business, other than administration, marketing and public relations, human resources, motor, building and security staff, the business is also divided into several sections according to production such as magazines, books and new businesses. The central production unit will assist in information, technology and editing for correction such as sub-editing, proofreading, information and technology, and data center. Printing Business has lots of staff working 24 hours regularly at the printing press and several machines including production conveyor in every part of the printing house no matter it will be in the area of proof platform, binding platform, adhesive platform, cutting platform, packaging, warehousing, etc. Each department is an important cog which cannot be missed out at all. Over the past 30 years, the staff members from both businesses are working dependently and living together as a large family with the founder, Mr. Chukiat Utakapan, as the head of the household and the backbone that Amarin staffs always trust with immerse ideology and determination to “work for the happiness and prosperity of the society” together with well rounded competence, attendance to team and work as well as reliability which made “Amarin” name accepted in printing industry. Though Mr. Chukiat has departed, everything that Mr. Chukiat has initiated and collected has grown fruitfully and trustfully. In 2008, Amarin Printing and Publishing Public Company Limited under Mrs. Metta Utakapan and new management remains a warmth house with good-natured and is the center for old and new generation who are prof icient, experience, reliable, hard working, patient, highly responsible, good interpersonal skill, family oriented and modernize. Everyone is working together happily with love to their jobs, their colleagues… and Amarin.


86

ANNUAL  REPORT  2008

Staff Welfare Along with business success, one thing that the Company has always given priority on is the staff welfare and the good social environment. The Company has arranged and supported activities that benef iting staff quality of lives and supporting both physical and mental health as well as promoting staffs to contribute to various social activities. Therefore, there are various projects initiated for the benef it of Amarin’s staffs at which one of Company’s proudest projects is “Baan Khun Noo Project (Kids Home project)”. This project has been continuously organized for several years with the objective of promoting relationships within families especially those staffs with obligations to raise children in studying age. The Company believes that the family is the most important social unit while several families currently struggle to earn their livings which may impact children caretaking. Hence, the Company has arranged a venue with crews to take care of staffs’ children during the off ice hours. This project is deemed as a way to lay foundation to warmth families which is the most precious for family and future society. Another important welfare is to educate staffs to understand the benef it of savings. The Company thus set up “Amarin Taweesuk Saving Cooperation Limited” and registers as juristic body in compliant with commercial laws. This gives opportunities to all staffs to join as members and to participate in managing the Co-op. This enables all staffs to save and to live suff iciency following the Royal remarks by His Majesty the King. In addition, the Company also opens the “Debt problem consulting clinic” aiming to give counseling services on problem in credit card debts, off-system debts (loans shark) as well as educate staffs on their f inancial and money matters. Besides, there are other staff welfares such as leave, accident insurance, medical benef its, childbirth caring support, child tuition fee supports, Government Saving Bank loans, provident funds, funeral support funds and loan supporting fund as well as sports and leisure projects. These welfares apply differently to each individual base on year of services, title or guidelines of each type of welfare. On specifying or apportioning these welfares, it is up to current specif ic circumstances and needs of major staffs. All welfares are parts of initiatives aiming to boost morale in staffs and their respective families. This will increase staffs’ readiness both physically and spiritually.


87

ANNUAL  REPORT  2008

Activities in 2008 Based on our, Amarin’s staffs, resolution, as every body of us has been realizing well that “we work for the happiness and prosperity of the society”, we have regarded it as our promise to our customers and Thai society. And producing works to meet the resolution, the Company’s every staff has been regarding it as our organization’s major factor that we must be happy both physically and mentally as well as our good quality of lives. The Company has been giving weight on this matter. As a result, we has hosted activities to promote health both physically and mentally, as well as promoting unity among the staffs. And they have been encouraged to contribute to Thai society in other aspects. The Company’s activities, as a consequence, have been launching with continued activities every year as follows:

1. Health Promotion Activity

Amarin Aerobic Dance, the Martial Art of Stick F ighting Performing for the Company’s Staffs’ Being Healthy, Yoga : The activities, taking turn to be hosted, are arranged every evening lasting for 1 hour so as to allow the Company’s staffs to continuously exercising throughout the year... Cheewajit Consumption for Health Project (Hosted As a Mini Course) : Extending knowledge relating to health through Cheewajit consumption in terms of foods, exercising, taking vacation and working. It has been hosted twice annually. An activity to invite specialized physicians to give basic knowledge of diseases, another activity to allow the Company’s staffs to be preventive and perspicacious of diseases.

2. Mental Health Promotion Activity

It is another activity hosted for both the Company’s staffs and general public who are interested in the matter, including the Company’s customers, teachers, students and Amarin’s nearby communities’ members. Dharma Lecture   :   hosted once a month through inviting monks to give lecture on Dharma for both Company’s staffs and interested parties in various topics to keep pace with current situation and to allow staffs to be able to adapt Dharma for their daily living. Insight Meditation Training   :   hosted at least a couple of times annually to trains the Company’s staffs to develop their minds and practice meditation to be enlightened on nature of their minds which is source of passion which causes misery to enable them to be happy in lives.

3. Unity and Thai Culture Promotion Activities

Chukiat’s Honoring Day   :   hosted on 10 May annually, which was birthday of Khun Chukiat Utakapan, the Company’s former Chairman and Founder. The activity recounts Amarin’s history from the past up until now and its ways of life which has been Amarin’s crucial culture, as well as reminding the Company’s staffs of their Founder who laid down foundation to all at Amarin.


88

ANNUAL  REPORT  2008


89

ANNUAL  REPORT  2008

CEO Opening Amarin House Day   :   hosted 3 times annually to welcome the Company’s all new staffs who successfully and off icially pass probation period to be members of Amarin Family. It allows every new staff to introduce himself to the Company’s high ranking executives who will deliver working policies and souvenirs for the staffs. The fair is also aimed at creating friendship among staffs. New Year Festival : hosted for merit making to celebrate New Year and wind up old year. The activities include merit making, offerings dedicated to the Sangha, young staffs being blessed by the Company’s high ranking executives, drawing activity with presents from the Company’s all executives to younger staffs, and gold awards for staffs who have worked with the Company for 10, 15, 20 and 30 years. Promoting Relationship on Songkran Day   :   hosted to preserve and promote Thainess and Thai culture. It is usually hosted before Songkran Festival’s long holidays. The activities include merit making of foods and rice, setting birds and f ish free for merit making purpose, Buddha Image’s parade and ritual bathing ceremony, and water pouring ceremony to ask for a blessing from the Company’s high ranking executives, and Company’s staffs jointly throwing water to each other in line with the Songkran Festival with warmth and friendliness before leaving for their domiciles. Amarin’s Staffs Jointly Opening Trunks for Goods Distribution on Loy Kratong Day : hosted during Loy Kratong Festival annually to promote unity among staffs and promote Thai culture. Proceeds from the activity will be contributed to the Thai society and the Company’s staffs who are in trouble f inancially. The fair includes setting up booths for products’ distribution, including foods and beverages, staffs’ goods for income raising, and activities on music performing on stages for fun.

4. Activity Encouraging Staffs to Contribute to Thai Society in Other Aspects

Apart from the Company’s products which have been creating happiness and prosperity to the Thai society, we also host activities encouraging our staffs to contribute to the society in other aspects, such as sharing love with knowledge project, project on donation of textbooks, studying equipments, sports equipments, and construction of libraries for needy schools, bloods’ and bodies’ donation to the Thai Red Cross Society twice annually, as well as establishing spots receiving donation from general public for contribution to victims of disasters, such as floods, and contribution to charity organizations etc.


92

ANNUAL  REPORT  2008

Environment Management The Company has been developing all along throughout its 33 years history to extend integrated quality service on printing business. It has been integration of printing technology science and perfect beautiful arts. With advanced printing technology and attention paid in every stage, the Company’s printing house has become Thailand’s f irst printing house being awarded ISO 9002 : 2000 international standard quality which has resulted in its fast and eff icient customers’ service. The Company, meanwhile, has been realizing overall environmental preservation of its off ice and nearby areas through excellently creation of environment management of its printing business line. The Company has constructed new off ice of its printing business line on common area with its existing printing house to perfectly and uniformly integrate its works on about 20 rais (around 8 acres) of land. The Company’s publishing business line moved to new premise in April 2004. The new off ice was beautifully designed and laid out for both building and external landscape. The Company’s existing printing house, meanwhile, was modif ied to get on well wih Amarin Corporate Park. It has resulted in the Company’s off ice being nice and shady in atmosphere, one of Thailand’s very few off ices to have such a nice working atmosphere amidst greenish trees and cool and luscious steam of water which has inspired the Company’s teamwork to produce quality works of all types of media to the society according to determination of Khun Chukiat Utakapan, the Company’s former Chairman and Founder.


Printing techniques: 4/C process, emboss and spot uv


profit


Shareholders Risk Factors Financial Report 2008 Operating Results and Financial Performance Financial Audit Report


97

ANNUAL REPORT 2008

Shareholders Shareholders Structure 1.Shareholders with share higher than 5% of the total share amount as of December 31, 2008.

Shareholders

2004

2005

2006

2007

2008

No.of shares % No.of shares % No.of shares % No.of shares % No.of shares %

Thailand Securities Depository Co., Ltd. for Depositors Mrs. Metta Utakapan

- - 38,860,396 19.43 38,804,976 19.40 39,286,503 19.64 39,988,867 19.99 74,393,662 37.20 74,393,662 37.20 74,393,662 37.20 74,393,662 37.20 74,393,662 37.20

Thailand Securities Depository Co., Ltd. for Depositors Ms. Rarin Utakapan Mr. Rapee Utakapan

- 18,533,684 17,389,474

- 17,850,832 8.93 19,477,832 9.27 18,533,684 9.27 18,533,684 8.69 17,407,896 8.70 17,407,896

9.74 19,106,832 9.55 18,938,463 9.47 9.27 18,533,684 9.27 18,533,684 9.27 8.70 17,407,896 8.70 17,407,896 8.70

2. Shareholding Structure of Company Management Management Member Shareholding

Mrs. Metta Utakapan Ms. Rarin Utakapan Mrs. Supawadee Komaradat Mr. Cheewapat Nathalang Mr. Praphan Prabhasavat Mrs. Nuanchan Supanimit Ms. Ampawan Boonchouy

Shareholding Structure

37.20% 9.27% 0.30% 0.10% 0.02% 0.05% 0.55%

3. Dividend Pay Out Policy: The company’s dividend payment policy is to pay no less than 60% of net profit after corporate income taxes. 4. Management Remuneration: Management Remuneration for 2008 consists of meeting fee for independent directors and for directors and management who are the Company’s employee received their remuneration in form of salary and bonus summarized as below: Nine Executive Directors 18,581,667 Baht The top 15 Management Members 36,507,872 Baht The rest of Management Members 39,129,844 Baht


98

ANNUAL REPORT 2008

Risk Factors The Company’s operating results depend on 2 major risk factors that could lead to risks to investors or impacts on share issuers. Those risks are:

Risks from shortage of products and raw materials

Paper is an important raw material for producing magazines or books and external printing orders. The cycle of paper price constantly fluctuates with the market demands and economic policies. When the price rapidly fluctuates, the Company will purchase three to six months for the amount in accordance with the printing demand. This will help lessen the risk from paper price fluctuations. During the stable price, the Company will place order only on the amount need for each job. With regards to sources of raw materials, the Company has a “Sourcing Committee” who locates primary suppliers as well as alternate ones just in case should the Company loses those primary suppliers.

Risks in Printing Industry

The Company has invested in large printing house on its own and also continuously improved printing technologies. Today it is one of the most modern facilities in the country with suff icient production capacity to accommodate magazines, books and external printing orders. It can effectively manage printing cost and accurately determine the production schedule for all printing jobs. Therefore, the Company hardly has any risk in terms of production capacities.

Copyrights Risks

Because the Company is in the magazines and books publishing market that highly competing in contents and continuously providing high quality and modern looks. On both counts, the Company needs to have its own internal creativities and purchases copyrighted external publications either directly from authors or through authorized copyrights agents by enter into legally binding contracts. Those contracts usually have fair and transparent detail terms and conditions. Therefore, the Company is protected from any risk in copyrights.

Payment Risks on Trade Account Receivables

The Company may have some risks from customers’ ability to pay trade account receivables. The Company has mitigated such risks by carefully selecting capable customers, requiring certain collateral on new clients, setting credit line and credit term uniquely and clearly for each customer, closely monitoring or collecting and visiting customers regularly.


99

ANNUAL REPORT 2008

Interest Rate Risks

The Company may have some risks from interest rates volatility on its f inancial management. The Company has very clear f inancial policies for choosing suitable f inancial tools at the minimal cost. The Company has never hold or issued any f inancial instruments intended for speculation or trading that are against company’s businesses.

Exchange Rate Risks

The Company may have some risks arisen from equipments payments in foreign currencies. However, the Company has mitigated such risks through the use of forward foreign currency contracts in every transaction.

Other Reference Registrar

Thailand Securities Depository Company Limited 4th Fl, 6-7 Stock Exchange of Thailand Building Rutchadapisek Road, Klongtoey Sub-district, Klongtoey District, Bangkok 10110

Auditors:

Samnak-Ngan AMC Company Limited. 191, 19th Fl, Silom Complex Building, Silom Road, Bangrak Ditrict, Bangkok 10500 Tel: 0-2231-3980 to 7, Fax: 0-2231-3988

Legal Counselor

Khunnatham Law Office 72/2-3 Suthisarn Winitchai Road, Sam Sen Nok Sub-district, Huay Kwang District, Bangkok Tel: 0-2274-7529 to 30, Fax: 0-2274-7638

Business Consultant

Pattana Wijai Company Limited 1215/6 Euar-suk Village, 15 Pattanakarn Road, Prakanong District, Bangkok Tel: 0-2322-4188

Regular Contact Financial Institutions: Bangkok Bank Plc, Banglumpoo Branch Kasikorn Bank Plc, Bangyeekan Branch Siam Commercial Bank Plc, Banglumpoo Branch


100

ANNUAL REPORT 2008

Financial Report Management Certif icate

February 19, 2009.

Khun Prapasri Leelasupa Certif ied Public Accountant Sam Nak-Ngan A.M.C Co., Ltd. 19th Floor Unit 4, Silom Complex Building 191 Silom Road, Silom Sub-district Bang Rak District, Bangkok 10500 This certif icate is given for your benef it in auditing Amarin Printing and Publishing PLC’s f inancial statements for the period ending on December 31, 2008, to ensure a reasonable conf idence or otherwise that the aforementioned f inancial statements do show the Company’s f inancial condition as of December 31, 2008, and that overall operations and cash flow for the same period are accurate based on general certif ied Accounting Principles. To the best of my knowledge, I certify that the details in the f inancial statements you are auditing are and ought to be as follows: 1 General 1.1 I am responsible for the accuracy and completeness of information in the f inancial statements that you have audited. These f inancial statements were prepared in accordance with the general accepted accounting princi ples in Thailand and any governing laws. 1.2 I have appropriately selected accounting policies and accounting information disclosure. There is no information presented that are contrary to essential facts based on each transaction’s subject matter and format that should appear in the f inancial statements. Neither is there omission to show any transaction and information required for the presentation of the f inancial statements. 1.3 I have informed all major issues pertaining to matters of f inancial statements preparation on which the Management Committee and/or the Board of Directors have discussed as well as the resolution methods for all these issues. 1.4 I am responsible for the design, and the adequate and appropriate implementation of the accounting system and internal control system including the proper segregation of staff duties for which close supervisory roles have been assigned covering all business transactions, to prevent and to facilitate the discovery of any errors. A reliable preparation of the f inancial statements is thereby possible. 1.5 I am responsible for the information given to you for auditing as follows: 1.5.1 Accounting and F inancial memoranda including documents evidencing and supporting accounting and f inancial transactions and all related information.


101

ANNUAL REPORT 2008

1.6 1.7 1.8

1.5.2 Complete copies of the Minutes of shareholders meetings, Board of Directors meetings, Management Committee meetings, Audit Committee meetings and other Sub-committee meetings (if any) and/or meeting notes which have not yet been prepared into minutes. All minutes and notes  –  faithfully recorded in meetings conducted since the beginning of the period until the date shown on this certif icate –  are as follows: - Minutes of the annual general meeting of the shareholders, number 1/2008, on April 17, 2008 - Minutes of Audit Committee meeting, number 1/2008 on March 4, 2008 - Dividend notif ication and annual general meeting (amended) notice - Minutes of Audit Committee meeting, number 2/2008 on May 23, 2008 - Minutes of Audit Committee meeting, number 3/2008 on July 23, 2008 - Minutes of Audit Committee meeting, number 4/2008 on September 19, 2008 - Minutes of Audit Committee meeting, number 5/2008 on November 21, 2008 - Minutes of Management Committee meeting, number 1/2008, on January 24, 2008 - Minutes of Management Committee meeting, number 2/2008, on February 14, 2008 - Minutes of Management Committee meeting, number 3/2008, on March 12, 2008 - Minutes of Management Committee meeting, number 4/2008, on April 10, 2008 - Minutes of Management Committee meeting, number 5/2008, on May 8, 2008 - Minutes of Management Committee meeting, number 6/2008, on June 12, 2008 - Minutes of Management Committee meeting, number 7/2008, on July 3, 2008 - Minutes of Management Committee meeting, number 8/2008, on July 31, 2008 - Minutes of Management Committee meeting, number 9/2008, on September 4, 2008 - Minutes of Management Committee meeting, number 10/2008, on September 10, 2008 - Minutes of Management Committee meeting, number 11/2008, on September 25, 2008 - Minutes of Management Committee meeting, number 12/2008, on October 30, 2008 - Minutes of Management Committee meeting, number 13/2008, on November 20, 2008 - Minutes of Management Committee meeting, number 14/2008, on December 18, 2008 The Company has no plan or intention to conduct any activities that may materially affect accounting values or the classif ication of assets and liabilities as shown in f inancial statements audited at the end of the period. The Company has no transaction that breaches any laws, regulations or announcements of the Securities and Exchange Commission which stipulate that the transactions must be disclosed in f inancial statements or be used as guidelines in recording losses which may occur in future. The following information have been recorded or disclosed in the f inancial statements: 1.8.1 Lists of individuals, partnerships, companies or related parties were completely indicated based on gener ally accepted accounting principles or notif ications from both the Securities and Exchange Commission and the Stock Exchange of Thailand. The lists cover natures of the entities’ businesses and the number of their business transactions which have been stated in Attachment 1 wherein all names, business trans actions, amounts, major conditions and guarantees that transpired during the period are given. 1.8.2 List of Assets, Liabilities and Prof it/Loss which may materially arise including guarantees. 1.8.3 List of rights and agreements given to other persons to purchase the Company’s common stocks, common stocks reserved for rights exercise on warrants, rights to buy back common stocks, stock conversion and other conditions including such obligations which has yet to occur.


102

ANNUAL REPORT 2008

1.8.4 List of communications with f inancial institutions that provide returns or cause restrictions in cash transactions and credit lines, or similar communications with other kinds of f inancial institutions. 1.8.5 List of itemized or grouped signif icantly high risk f inancial instruments including off balance sheet f inancial derivatives (futures, options, swaps) including future securities trading contracts, both contractually specif ied and on credit. 1.8.6 List of non operating assets 1.8.7 List of borrowings and loans that have been restructured which have had their interests or principals paid up as a result of borrowers’ f inancial diff iculties. 1.8.8 List of assets sold with repurchase agreements. 1.8.9 List of events that have occurred after f inancial statements date.

1.9 During this period, there is no change in the Company’s accounting policy, nor is there any adoption of an accounting policy that may materially impact the f inancial statements. 1.10 I certify that there are no differences from auditing report arising from non-adjusted items. 1.11 Effects from cases of fraud and conflict of interest: 11.1.1 There is no fraud related to management or employees having important roles within the internal control structure that can signif icantly impact the f inancial statements. 11.1.2 There is no case where employees or workers with interests in other companies with which the Company conducts business that may necessitate conflict of interest consideration. 1.12 The Management has been informed that the Company has major trading risks with individuals or any group. These transactions are in line with the following criteria and are necessarily considered for disclosure in the financial statements. 1.12.1 Already occurred as of this f inancial statements date 1.12.2 Putting the Company at risk of severe consequences that may arise in the near future 1.12.3 There are reasons to believe that incidences causing such severe consequences may occur in the near future 2 Assets 2.1 I have reviewed the accounting values of all non-current assets whether or not they show higher accounting values than realizable values. I have also considered any impairment in cases where there are any events or changes in circumstance that may indicate possible differences in the assets’ accounting values and their realizable values. In case of assets impairment, it will be recognized and appropriately shown in the f inancial statements. 2.2 The Company has set guidelines to assign the senior off icers to be responsible for verifying the appropriateness of insurance policy at least once a year to ensure that all insurable assets and risks have been covered. The guidelines have been implemented accordingly. In my opinion, the insurance is appropriate and suff icient. 2.3 I have classif ied investments in debts and equities instruments in accordance with investment management objectives. The values of the investments are presented with fair values or values according to generally accepted accounting principles. In case of asset impairments, they will be recognized in the prof it and loss statements. 2.4 All current assets anticipated to occur from core business operations have values that are no less than their values in the f inancial statements. Particularly, adequate and non-excessive provisions have been set for bad debts and non-moving or obsolete or unusable inventory.


103

ANNUAL REPORT 2008

3. Liabilities 3.1 The Company has no future sales contracts exceeding normal quantity or price that may lead to non-accrual losses. Besides, there is no buy back contract for any inventory sold. 3.2 On the f inancial statements date, the Company has not been charged or demanded for damages except in cases already disclosed in f inancial statements. 3.3 I have acted in accordance with all conditions agreed in the contracts. Any violation will signif icantly affect the f inancial statements. 4. Shareholders’ Equity The Company does not enter into any agreement that results in the provision of direct or indirect f inancial supports to other parties, or one concerning the Company’s stocks possession. 5. Information Systems Other than the cases already notif ied, the Company has not changed or used a new information system or engaged in other event that occurred during the year which may severely impact the completeness and accuracy of the information systems and related information.

Yours truly,

(Mrs. Metta Utakapan) Chief Executive Director

(Miss Thanaree Pimparu) Accounting and F inance Director


104

ANNUAL REPORT 2008

2008 operating results and financial performance Operating Results Overview

The Company’s operations are grouped into 2 major categories: Printing Business which undertake printing contracts for general customers and prints for other units with the Company, and Publishing Business which publishes magazines and books, sells advertising spaces in magazines and organizes seminars, tours and events. In 2008 the Company had a total revenue of 1,876.12 million Baht, an increase of 9.38% from 2007. Net operating profits was 275.84 million Baht, an increase 22.39% from 2007, putting the net profit per share at 1.38 baht.

Total Income

The total income from sales and services of 1,855.30 million Baht in 2008, an increase 9.27% from 2007, can be allocated to the major businesses as follows:

Printing Business

Investment in advance machinery and equipment, continuous adoption of new printing technologies and constant development of competitive strategy have meant that in 2008 the Company received 5% more revenues from printing contracts than in 2007 even though the number of printing contracts has decreased after 2007 due to the economic slowdown and intense price competition.

Publishing Business

Income from sales of advertising spaces  Total market’s falling revenues from magazine advertising notwithstanding, the Company had developed new sales strategy and continuously offered the customers new ways to advertise and, as a result, managed to maintain market share. A new magazine “Secret” was launched in mid-2008, making a total of 12 bi-monthly and monthly magazines under the Company’s umbrella, and helped push the total sales of advertising space in 2008 to 6.58% greater than the total for 2007. Income from sales of printed matters In 2008, the Company’s income from the sales of 12 magazines and books by Amarin Group’s publishers increased by 17.93% due to the launch of 1 new magazine, the right to translate and publish The Last Lecture and sales of books in the spiritual-psychology category which continue to be popular among readers, e.g., The Top Secret by Dr. Som Sujira or The Secret a best seller since 2007. Income from seminars and travel services  The Company remains committed to keep developing and opening new domestic and foreign travel destinations. Guided by the concept “The Service You Can Trust”, the emphasis on high quality services was paid off in improved operating results. In the training and seminar business, by successfully organizing training courses and seminars tailor made to all customer segments, the operating results were also satisfactory. The income from seminars and travel services in 2008 increased by 51.87%. Income from exhibition organization and television productions  The Company organizes 3 important fairs annually. The fairs are Baan Lae Suan Fair, Amarin Book Fair and Health Cuisine & Beauty Festival. Baan Lae Suan Fair, organized at the Challenger, IMPACT Muang Thong Thani,


105

ANNUAL REPORT 2008

a fair for lovers of home and garden as well as decoration, is one of the most comprehensive and grandest in the country. 2008 was the 9th year of the fair. Amarin Book Fair and Health, Cuisine & Beauty Festival were organized at the Queen Sirikit National Convention Center. All 3 fairs were well supported by exhibitors and visitors. As for television production, the Company is committed to continuously producing a quality television program and has improved features, contents and format of Health Club to make the program more interesting. Health Club is broadcast every Tuesday on Channel 7 at 16:15 to 16:30.

Cost of sales

In 2008 the Company’s cost of sales amounted to 1252.10 million Baht, an increase of 8.69% from 2007 commensurate to the increase in revenue. So far the Company has been launching 1 new magazine every year and some have not yet achieved break even. However, the ratio of cost of sales to turnover of 67.48% in 2008 was similar to the 27.85% in 2007.

Sales and administrative expenses

The total sales and administrative expenses in 2008 of 246.64 million Baht was a more 4% increase from 2007. The Company had been paying attention to managing and controlling costs to within budget every unit had to seriously adopt the policy and that has made the small increase possible.

Net profit

The operating results of 2008 generated a total revenue of 1,876.12 million Baht which was an increase of 9.38% from 2007. By managing the costs of sales and efficiently controlling expenses, the Company was able to achieve a net profit of 275.84 million Baht, the highest in all the years and an increase by 22% from 2007. Net profit margin was 15%. Net earning per share was 1.38 Baht.

Financial status Total assets

As at December 31, 2008, total assets owned by the Company amounted to 2,036.65 million Baht consisting of: Current assets 1,077.03 million Baht Property, plant and equipment 851.94 million Baht Assets in 2008 increased from those in 2007 by 3.55% due to the increase in cash and cash equivalent and increased fixed asset in the form of land purchased for factory expansion.


106

ANNUAL REPORT 2008

Liabilities and stockholders’ equity Total liabilities

As at December 31, 2008, the Company’s total liabilities amounted to 365.88 million Baht, decreasing from 2007 by 11% due to reduced trade account payable and advanced received. Debt to equity ratio was 0.23.

Stockholders’ equity

The Company’s stockholder’s equity as at December 31, 2008 was 1,670.76 million Baht making the book value of equity per share 8.35 Baht, as against stockholder’s equity in 2007 of 1,554.93 million Baht with a book value of equity per share of 7.77 Baht, with 200 million issued and paid up common stocks.

Cash flow

In 2008 the Company had a cash flow from operating activities of 340.97 million Baht, a cash flow from investing activities of 61.62 million Baht and a cash flow from financing activities of 164 million Baht. Balance sheet as at December 31, 2008 shows a cash and cash equivalent of 342.18 million Baht. Salient points are as follows: The cash flow from operating activities of 340 million Baht came from net profit for cash received from operation at 529 million Baht, the greater cash flow due to a 47.12 million Baht decrease in trade receivables, an increase in trade receivables in related companies by 53.26 million Baht, an increase in inventory by 22 million Baht, a decrease in trade payables by 51.14 million Baht due to debt repayments, a cash decrease in advance received of printing by 18.19 million Baht and a corporate income tax payment of 103.59 million Baht. A notable item in cash flow from investing activities was the additional land purchase of 61.85 million Baht. Cash flow from financing activities were the dividend payment at 160 million Baht and the cash payment for liabilities under financial lease contracts at 4.79 million Baht, making the cash spent in financing activities total of 164.88 million Baht.


107

ANNUAL REPORT 2008

Amarin Printing and Publishing Public Company Limited RATIO ANALYSIS

2006

2007

2008

2.47 1.88 1.26 4.30 84 6.62 54 6.51 55 83

2.44 1.95 1.39 3.59 100 6.70 54 5.77 62 92

2.95 2.32 1.37 3.69 98 6.65 54 6.24 58 94

Liquidity Ratio Current Ratio Quick Ratio Liquidity Ratio (cash basis) Receivable Turnover Average Collection Period Inventory Turnover Inventory Turnover Period Account Payable Turnover Payment Period Cash Cycle

Ratio Ratio Ratio Time Day Time Day Time Day Day

Profitability Ratio Gross Profit Margin Operating Profit Margin Other Income Ratio Cash per Profitability Ratio Net Profit Margin Return on Equity

% % % % % %

33.76 21.08 1.60 116.42 15.43 18.86

32.15 18.99 1.02 150.96 13.14 14.81

32.51 20.05 1.11 140.90 14.70 17.10

Efficiency Policy Ratio Return on Total Assets Return on Fixed Assets Assets Turnover

% % Ratio

15.21 25.50 0.99

11.98 22.85 0.91

13.78 29.75 0.94

Financial Policy Ratio Debt to Equity Ratio Interest Coverage Ratio Debt Coverage Ratio Dividend Pay out %

0.21 602.57 1.53 59.35

0.27 909.26 0.99 70.99

0.23 1,728.33 1.81


108

ANNUAL REPORT 2008

Income Statement Comparison Fiscal year ended December 31, 2008 and 2007 Unit: Thousand Baht

Category

2008 Amount

2007 %

Amount

Increase (Decrease) %

Amount

%

Income Income from Sales and Services 1,855,296 98.89 1,697,768 98.98 157,529 9.28 Other Income 20,823 1.11 17,513 1.02 3,310 18.90 Total Income 1,876,119 100.00 1,715,281 100.00 160,838 9.38 Less: Cost of sales 1,252,099 66.74 1,151,971 67.16 100,128 8.69 Gross Profit 624,020 33.26 563,310 32.84 60,710 10.78 Less: Sales and Admisnistrative Expenses Sales and Administrative Expenses 247,914 13.21 237,581 13.85 10,333 4.35 Interest Paid 365 0.02 651 0.04 (287) (44.00) Corporate Income Tax 99,904 5.33 99,707 5.81 196 0.20 Total Sales and Administrative Expenses 348,182 18.56 337,939 19.70 10,243 3.03 Profit after Sales and Administrative Expenses 275,838 14.70 225,370 13.14 50,468 22.39 Add: Profit (Loss) from Associated Company - - - - - - Net Profit 275,838 14.70 225,370 13.14 50,468 22.39 Net Earning per Share (Baht) 1.38 1.13


109

ANNUAL REPORT 2008

Amarin Printing and Publishing Public Company Limited 2004-2008 Balance Sheet (Company Only) As of December 31

Unit: Thousand Baht

Assets Cash and Cash Equivalents Short Term Investment Trade Accounts and Notes Receivables-Net

2008

2007

2006

2005

2004

342,189

104,482 188,872 339,599 162,129 177,014 23,733 995,830 2,500

107,248

112,409

55,407

- 290,401 Trade Accounts Receivables-Related Companies-Net 213,513 Inventories 199,373 Other Current Assets 31,551 Total Current Assets 1,077,026 Investments in Equity Investments-Net 2,500 Long-Term Investment-Net 10,175 Property, Building and Equipments 913,798 Other Assets 33,149 Total Assets 2,036,649

- 940,342 28,031 1,966,703

- 281,306 163,480 166,740 22,646 741,420 2,500 - 1,032,690 18,926 1,795,535

- - 265,831 211,818 89,871 89,439 177,184 140,512 20,165 22,363 665,459 519,540 2,500 - 1,074,156 943,094 7,730 2,254 1,749,846 1,464,888

Liabilities and Shareholders’ Equity Trade Accounts and Notes Payable 174,759 226,499 172,834 176,917 158,987 Accrued Corporate Income Tax 52,668 56,350 46,769 36,315 31,970 Other Current Liabilities 137,736 125,576 80,162 166,644 108,135 Other Non-Current Liabilities 716 3,346 6,208 - - Total Liabilities 365,879 411,772 305,974 379,876 299,093 Shareholder’s Equity Paid-up Capital 200,000 200,000 200,000 200,000 200,000 Share Premium 270,000 270,000 270,000 270,000 270,000 Legal Reserve 25,000 25,000 25,000 25,000 25,000 Unappropriated Retained Earnings 1,175,769 1,059,932 994,562 874,970 670,794 Total Shareholders’ Equity 1,670,769 1,554,932 1,489,562 1,369,970 1,165,794

Total Liabilities and Shareholders’ Equity 2,036,649

1,966,703

1,795,535

1,749,846

1,464,888


110

ANNUAL REPORT 2008

Amarin Printing and Publishing Public Company Limited 2004-2008 Income Statement As of December 31

Unit: Thousand Baht 2008

Income Income from Sales and Services 1,855,296 Other Income 20,823 Total Income 1,876,119 Expenses Cost of sale 1,252,099 Sale and Administrative Expenses 247,914 Interest Expenses 365 Income Tax 99,904 Total Expenses 1,600,282 Gross Profit 275,838 Add Profit (Loss) from Associated Company - Gross Profit after Associated Company 275,838

Unappropriated Retained Earning Brought Forward 1,059,932

Retained Earning Before Appropriated 1,335,769 Less Dividend Paid 160,000 Legal Reserve - Income Tax Adjustment - Total Appropriated Profit 160,000 Unappropriated Retained Earning Carry Forward 1,175,769 Net Earning per Share

1.38

2007

2006

2005

2004

1,697,768

1,719,702

1,486,803

1,287,124

17,513 1,715,281

27,954 1,747,655

19,196 1,505,999

44,813 1,331,937

1,151,971 237,581 651 99,707 1,489,911 225,370

1,139,084 240,169 876 97,934 1,478,064 269,592

984,252 207,025 65 80,482 1,271,824 234,175

- 225,370 994,562 1,219,932 160,000 - - 160,000 1,059,932

- 269,592 874,970 1,144,562 150,000 - - 150,000 994,562

- 234,175 670,794 904,970 30,000 - - 30,000 874,970

838,201 200,618 185 74,980 1,113,983 217,953 (259) 217,695 554,218 771,913 101,119

1.13

1.35

1.17

101,119 670,794 1.09


111

ANNUAL REPORT 2008

AUDITOR’S REPORT To the Shareholders and the Board of Directors of AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED I have audited the balance sheets as of December 31, 2008 and 2007, the related statements of income, changes in shareholders’ equity and cash flows for the years then ended of AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED. These f inancial statements are the responsibility of the Company’s management as to their correctness and completeness of the presentation. My responsibility is to express an opinion on these f inancial statements based on my audit. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance as to whether the f inancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the f inancial statements. An audit also includes assessing the accounting principles used and signif icant estimates made by management, as well as evaluating the overall f inancial statements presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the f inancial statements referred to above present fairly, in all material respects, the f inancial positions as of December 31, 2008 and 2007, the results of operations and cash flows for the years then ended of the AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED in conformity with the generally accepted accounting principles.

SAM NAK-NGAN A.M.C. CO., LTD.

(Miss Praphasri Leelasupha) Certif ied Public Accountant (Thailand) Registration No. 4664

Bangkok, February 19, 2009


112

ANNUAL REPORT 2008

AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED BALANCE SHEETS As of December 31, 2008 and 2007

Unit : Baht Note

Assets CURRENT ASSETS Cash and cash equivalents 5 Short-term investment 6 Trade accounts and notes receivable-net 7 Trade accounts and notes receivable-related companies-net 4.1 and 8 Inventories 4.1 and 9 Supplies for machines Other prepaid expenses Advance for receivables Other current assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS 10 Investments in equity instruments-net Long-term investment-net 11 Property, plant and equipments-net 12 Land awaiting development 13 14 Computer software-net Copyright for books Other non-current assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS

2008

2007

342,188,701.31

104,482,453.39 188,871,808.34 339,599,477.03 162,129,094.41 177,014,291.75 9,413,269.38 5,006,125.23 2,559,216.03 6,754,368.84 995,830,104.40

- 290,400,975.92 213,512,870.44 199,373,276.06 11,306,846.53 4,475,760.87 6,406,808.94 9,361,216.52 1,077,026,456.59 2,500,000.00 10,175,311.55 851,944,191.13 61,853,854.00 12,832,814.15 18,117,522.19 2,198,741.21 959,622,434.23 2,036,648,890.82

Notes to f inancial statements are an integral part of these f inancial statements.

2,500,000.00

940,341,839.24 - 12,598,410.70 14,090,749.96 1,342,141.71 970,873,141.61 1,966,703,246.01


113

ANNUAL REPORT 2008

AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED BALANCE SHEETS As of December 31, 2008 and 2007

Note

Unit : Baht 2008

2007

LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Trade accounts and notes payable 174,759,026.36 226,499,344.07 Current portion of long-term liabilities 15 2,569,074.09 4,363,384.40 Advance received of printing 17,270,394.54 35,462,250.95 Undued output tax 16,307,068.47 20,171,459.72 Accrued corporate income tax 52,668,411.03 56,350,273.31 Accrued expenses 67,390,282.95 48,971,285.75 Other accounts payable 14,573,355.39 6,034,124.94 Account payable-assets 6,692,046.77 95,389.97 Others current liabilities 12,933,961.09 10,478,148.25 TOTAL CURRENT LIABILITIES 365,163,620.69 408,425,661.36 NON-CURRENT LIABILITIES Liabilities under f inancial lease contracts-net 15 715,860.71 3,345,907.44 TOTAL NON-CURRENT LIABILITIES 715,860.71 3,345,907.44 365,879,481.40 411,771,568.80 TOTAL LIABILITIES SHAREHOLDERS’ EQUITY Share capital Authorized share capital 200,000,000 Ordinary shares @ Baht 1.00 200,000,000.00 200,000,000.00 Issued and paid-up share capital 200,000,000 Ordinary shares @ Baht 1.00 200,000,000.00 200,000,000.00 Premiums on shares capital 270,000,000.00 270,000,000.00 Retained earnings Appropriated 25,000,000.00 25,000,000.00 Legal reserve Unappropriated 1,175,769,409.42 1,059,931,677.21 TOTAL SHAREHOLDERS’ EQUITY 1,670,769,409.42 1,554,931,677.21 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 2,036,648,890.82 1,966,703,246.01 Notes to f inancial statements are an integral part of these f inancial statements.


114

ANNUAL REPORT 2008

AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED INCOME STATEMENTS For the years ended December 31, 2008 and 2007

Unit : Baht

Note

Revenues from sales and services Cost of sales and services Gross margin Other income Selling and administrative expenses Directors’ remunerations Interest expenses Prof it before corporate income tax Corporate income tax Net prof it

Earnings per share Number of ordinary shares (Unit : Shares)

2008

2007

1,855,296,472.51 (1,252,099,283.17) 603,197,189.34 20,822,798.20 (246,638,105.04) (1,275,789.48) (364,622.29) 375,741,470.73 (99,903,738.52) 275,837,732.21

1,697,767,937.32 (1,151,971,429.03) 545,796,508.29 17,513,079.42 (236,380,969.42) (1,200,000.00) (651,155.08) 325,077,463.21 (99,707,290.91) 225,370,172.30

1.38 200,000,000.00

1.13 200,000,000.00

18

19

Notes to f inancial statements are an integral part of these f inancial statements.


115

ANNUAL REPORT 2008

AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY For the years ended December 31, 2008 and 2007

Unit : Baht

Issued and share Premiums on Retained earrnings Capitalpaid-up shares capital Appropriated Unappropriated legal reserve

Note Balance as of January 1, 2007 Net prof it for the year Cash paid as dividend Balance as of December 31, 2007 Net prof it for the year Cash paid as dividend Balance as of December 31, 2008

16

Total

200,000,000.00

- -

270,000,000.00

25,000,000.00

994,561,504.91

1,489,561,504.91

-

-

225,370,172.30

225,370,172.30

-

-

(160,000,000.00)

(160,000,000.00)

200,000,000.00

270,000,000.00

25,000,000.00

1,059,931,677.21

1,554,931,677.21

-

-

-

275,837,732.21

275,837,732.21

16

-

-

-

(160,000,000.00)

(160,000,000.00)

270,000,000.00

25,000,000.00

1,175,769,409.42

1,670,769,409.42

200,000,000.00

Notes to f inancial statements are an integral part of these f inancial statements.


116

ANNUAL REPORT 2008

AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED CASH FLOW STATEMENTS For the years ended December 31, 2008 and 2007

Unit : Baht 2008

2007

CASH FLOWS FROM OPERATING ACTIVITIES 375,741,470.73 325,077,463.21 Net prof it before corporate income tax Adjustment to net prof it for cash received (paid) from operation 80,500.79 74,082.07 Bad and doubtful debts-trade account receivable Allowance for returned magazines and books 3,873,016.52 4,461,912.28 Doubtful debts-other current assets (reversal entry) (360,000.00) (120,000.00) (823,851.14) Amortization of premium on bonds (1,099,915.61) Depreciation 147,361,771.74 160,634,853.63 Amortization of computer software 4,056,138.16 4,475,637.14 (2,600,465.26) Gain from sale and written off of f ixed assets (237,144.41) 137,378.42 (117,104.64) (Gain)loss from unrealized on exchange rate 364,459.79 650,741.15 Amortized interest expenses under f inancial lease contracts 162.50 413.93 Interest expenses 529,917,838.63 491,713,682.37 Prof it from operations before changes in operating assets and liabilities Operating assets decrease (increase) 47,116,413.52 (58,367,785.34) Trade accounts and notes receivable (3,110,887.06) Trade accounts and notes receivable-related companies (53,255,205.75) Inventories (22,358,984.31) (10,274,542.00) 429,874.29 Supplies for machines (1,893,577.15) 530,364.36 1,492,915.65 Other prepaid expenses (126,612.13) Advance for receivables (3,847,592.91) (2,763,200.36) Other current assets (2,246,847.68) (3,758,386.15) Copyright for books (4,026,772.23) (45,664.22) Other non-current assets (856,599.50) Operating liabilities increase (decrease) 53,664,927.25 Trade accounts and notes payable (51,740,317.71) 29,470,684.69 Advance received of printing contracts (18,191,856.41) 2,754,605.94 Undued output tax (3,864,391.25) 18,281,618.78 11,312,566.21 Accrued expenses 8,539,230.45 3,410,031.07 Other accounts payable 2,455,812.84 (2,165,098.59) Other current liabilities 444,559,133.68 513,637,111.62 Cash received from operating activities (90,125,944.92) Paid for corporate income tax (103,585,600.80) (413.93) Paid for interest expenses (162.50) 340,973,370.38 423,510,752.77 Net cash provided by operating activities

Notes to f inancial statements are an integral part of these f inancial statements.


117

ANNUAL REPORT 2008

AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED CASH FLOW STATEMENTS For the years ended December 31, 2008 and 2007

Note

Unit : Baht 2008

2007

190,000,000.00 (10,203,587.60) (52,317,109.19) (61,853,854.00) 282,176.74 (4,290,541.61) 61,617,084.34

(188,047,957.20) - (66,740,852.23) - 3,119,367.87 (9,777,244.30) (261,446,685.86)

(95,389.97) (4,788,816.83) (160,000,000.00) (164,884,206.80) 237,706,247.92 104,482,453.39 342,188,701.31

- (4,829,866.11) (160,000,000.00) (164,829,866.11) (2,765,799.20) 107,248,252.59 104,482,453.39

6,692,046.77 -

95,389.97 1,969,812.55

CASH FLOWS FROM INVESTING ACTIVITIES

(Increase) decrease in short-term investment Invest in long-term investments Purchase of property, plant and equipments Purchase of land awaiting development Sale of property, plant and equipments Invest in computer software Net cash provided by (used in) investing activities CASH FLOWS FROM F iNANCING ACTIVITIES Paid for accounts payable-assets Paid for liabilities under f inancial lease contracts Dividend paid Net cash used in f inancing activities Net increase (decrease) in cash and cash equivalent-net Cash and cash equivalent at the beginning of period 5 Cash and cash equivalent at the end of period ADDITIONAL DISCLOSURE : The Company has non-monetary item as follows : - acquired assets that have not yet been paid for - acquired assets by entering into f inancial lease contracts

Notes to f inancial statements are an integral part of these f inancial


118

ANNUAL REPORT 2008

AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED NOTES TO F iNANCIAL STATEMENTS As of December 31, 2008 and 2007 1.  General Information

AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED (the Company) was registered on January 8, 1987, with the Company registration number 0105530001431, and later registered as a public company on September 15, 1993, with the registration number 0107536000480 and its head off ice situated at 65/101-103 Chaiyaphruk Road, Taling Chan, Bangkok 10700. Its main business activity is printing, advertising and the sale of printed matter.

2. Basic of F inancial Statements Preparation

2.1  The Company prepared and presented its f inancial statements in accordance with the generally accepted accounting principles under the Accounting Act B.E. 2543 which implies the accounting standards determined by the Federation of Accounting Professions, set up in accordance with the Accounting Professions Act B.E. 2547, announced to be effective, and in accordance with the determination of the off ice of the Securities and Exchange Commission on the subject of preparation and presentation of the f inancial reports. These f inancial statements were prepared by using original cost basis except those disclosed otherwise in the accounting policies. 2.2  Announcement of new accounting standards The Federation of Accounting Professions has issued the Federation of Accounting Professions’ announcement nos. 9/2550, 38/2550, 62/2550 and 86/2551 on Accounting standards requiring the implementation of the following new accounting standards. a) Accounting standards to be effective in 2008 No. 25 (Revised 2007) on Cash Flow Statements No. 29 (Revised 2007) on Rental Contracts No. 31 (Revised 2007) on Inventories No. 33 (Revised 2007) on Costs of Borrowing No. 35 (Revised 2007) on Presentation of F inancial Statements No. 39 (Revised 2007) on Accounting Policies, Changes in Accounting Estimates and Errors No. 41 (Revised 2007) on Interim F inancial Statements No. 43 (Revised 2007) on Business Combinations No. 49 (Revised 2007) on Construction Contracts No. 51 on Intangible Assets b) Accounting standards to be effective in 2009 No. 36 (Revised 2007) on Asset Impairment No. 54 (Revised 2007) on Non-Current Assets held for Sale and Cancelled Operation From the application of the above Thai accounting standards, the management of the Company has evaluated and given opinion that there would be no material effect on the f inancial statements for the year the said Thai accounting standards commence to be applied.


119

ANNUAL REPORT 2008

2.3 The f inancial statements for the year ended December 31, 2007, the entire amount of revenues from sales papers and scraps at Baht 15.51 million shown in other income has been reclassif ied to revenues from sales and services, cost of sales papers at Baht 8.17 million shown in selling and administrative expense have been reclassif ied to cost of sales and services to facilitate the comparison with the f inancial statements for the year ended December 31, 2008, which have no effect to the net prof it or shareholders’ equity already reported. 2.4 The Company prepared its statutory f inancial statements in the Thai version in conformity with generally accepted accounting principles in Thailand. The accounting standards used may be different from generally accepted accounting principles in other countries. For the convenience of the readers of the f inancial statements, English version have been prepared from the statutory f inancial statements in Thai version that are issued for domestic reporting purposes.

3. Summary of signif icant accounting policies

The signif icant accounting policies of the Company are as follows : 3.1 Recognition of revenues and expenses - Sales are recognized when goods have already been delivered to customers - Sales of goods on consignment are recognized when such goods are delivered to customers by the consignees. - Revenue from advertising is recognized once the advertisement is released. - Revenue from tour business, training and seminars and organizing exhibitions are recorded in accrual basis. - Other income and expenses are recognized on accrual basis. 3.2 Cash and cash equivalent transactions included cash, bank deposit in types of savings, current, f ixed deposit and short term investment not exceeding three-month maturity period, with no guarantee obligation. 3.3 Investments in debt instruments which are held until maturity will be classif ied as short-term or long-term investments according to the remaining maturity period. They are shown at cost written down and deducted by allowance for impairment (if any). The Company write off premium/discount over value of debt instruments by straight-line method and the amount written-off will be shown in the income statement. 3.4 Trade accounts and notes receivable are shown at net realizable value. Allowance for doubtful debts is made by considering each account receivable expected to be uncollectible. 3.5 Allowance for the returned magazines and books is estimated basing on the estimated number of returned magazines and books from clients at not greater than percentage of estimated return from each sale (except new magazine). This percentage is calculated from the conditions provided for each customers and the period of the accept return is 1 year after the sale. 3.6 Inventories are shown at the lower of cost or net realizable value and adjusted by slow-moving or out-of- date goods (if any). In case of cost, the following calculation is observed : - F inished goods and completed printing assignment jobs are reflected at specif ic cost. - Printing assignment in process and works in process are valued at mutual cost by percentage of completion method. - Supplies are valued at cost under F iFO method. 3.7 Supplies machines is valued at cost under F iFO method and adjusted by allowance for slow-moving or out-of-date supplies (if any). 3.8 Long-term investment is non-marketable equity instruments which are treated as general investments are shown at cost net off by accumulated allowance for impairment and change is value of general investments is recognised in the income statement when they are sold or impaired. 3.9 Lands are recorded initially at cost. Building and equipments are recorded at cost after deduction of accumulated depreciation and depreciated on a straight-line method using approximate useful life as follows : - Factory and building improvements 20 years


120

ANNUAL REPORT 2008

- Machines and equipments 5-10 years - Tools, vehicles and off ice equipments 5 years The Company has no depreciation made for land and construction in progress and in transit. 3.10 Land awaiting development are initially recorded by cost method net allowance for accumulated impairment (if any). 3.11 Intangible assets and amortized expense Intangible asset is shown at cost less by accumulated amortized expense and allowance for impairment (if any) of that asset. The Company makes amortization of intangible asset with certain useful life systematically throughout the useful life of such asset and there will be assessment of value impairment of that asset once indication appears that impairment will occur. The Company will review the period and method for amortization of intangible assets with certainty in useful life at least every end of the year. Amortized expense will be recognized in the income statement. Intangible asset, with limited useful life, have the following period of useful life : - Computer software 3 years - Copyright for books 3-5 years commencing from the book production date and according to the volume of books sold. No amortization is provided on computer program under development. 3.12 Asset impairment : at every balance sheet date, the Company will assess whether there is any indication for asset impairment. If there is any impairment, the Company will assess the realizable value of that asset and if the book value of that asset is more than its realizable value, the Company will lower the asset value to its realizable value and recognize the loss from impairment in the income statement (realizable value of assets is meant the net sale value or useful value of such asset, whichever is higher). 3.13 F inancial lease agreement recorded as both an asset and a liability in the balance sheet at the same amount equivalent to fair value of leased asset as at the commencing date of the agreement or the present value of the minimum amount payable under the agreement whichever is lower. The discount rate to be used in calculating such present value is the interest rate specif ied in the lease agreement. The directly related initial cost is included in the cost of the asset and the paid lease fee will be appropriated partly as f inancial expense and other to reduce the principle. The said f inancial expense will be apportioned to various periods throughout the term of agreement so that the interest rate compared the remaining amount of debt at each period is constant. Depreciation policy for lease assets conforms to depreciable assets owned by the Company. 3.14 Lease operation contract in hiring assets which the risk and ownership of the hired assets remain with the lessor classif ied as lease operation. The lease fee paid under lease operation recorded as expense throughout the term of the contract. 3.15 Items denominated in foreign currencies are recorded in Baht at prevailing rates of exchange when the transactions occur, while the remaining balance of assets and liabilities denominated in foreign currencies at the year end are converted into Baht at the prevailing rates on that date, and the gains or losses arising from such conversion is included in the related income statement. 3.16 Inter-transaction between the related parties and related companies The related parties and related companies with the Company meant the parties or the companies that have the controlling power to the Company, controlled by the Company, either directly or indirectly, or under the same control with the Company, including the holdings companies for the subsidiary and group companies. Furthermore, the related parties and related companies also meant the associated companies and the parties whose holding the shares with voting rights, either directly or indirectly, and have signif icant influence to the Company, important


121

ANNUAL REPORT 2008

management, directors or the employees of the Company who have the power to plan and control the Company’s operation including the family members close to the said persons which cloud persuade or power to persuade to act in compliance with the said persons and business that the said persons have control power or signif icant influence, either directly or indirectly. 3.17 Employee benef its The Company have set up the provident fund for the type that the contribution plan has already been determined. The provident fund’s asset has been separated from the assets of the Company and manages by an outside fund manager. The said provident fund receives contributions from the employees and the Company. The contribution from the Company is recorded as the expense in the income statements for the accounting period the transaction incurred. However, the Company did not set up the liability for the employee benef its according to the Thai Labor Law. 3.18 Corporate income tax is recognized as expenses when the Company is liable to pay such tax. 3.19 Earnings per share is calculated by dividing net prof it with the weighted average number of issued and paid-up ordinary shares during the year. 3.20 Sectoral Business Operations The business sector is the business sector that source products or provide services which have different risks and return from the risks and return of the products or services provide by other business sectors. The sectoral business operation is disclosed under the separate business sectors of the Company. 3.21 F inancial instruments F inancial assets and liabilities carried on the balance sheets include cash and cash equivalents, trade accounts receivable and payable, other accounts receivable and payable, and loan receivables and payables. The important accounting policies and measurement of these items are disclosed in the respective accounting policies for related items. 3.22 Preparation of the f inancial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosure. The actual results may differ from those estimates.

4. Transactions with related parties

The Company incurred accounting transactions with its related parties with the same group of shareholders or directors. The remaining balances and material inter-transactions between the Company and its related parties are as follows: 4.1 Inter-assets and liabilities Unit : Baht Type of transactions/company’s name Relationship As of December 31, 2008 2007

- Trade accounts and notes receivable - net Amarin Book Center Co., Ltd. Related Company Amarin Food and Beverage Co., Ltd. Related Company

- Consigned goods Amarin Book Center Co., Ltd.

Related Company

213,387,680.44 125,190.00 213,512,870.44

162,113,044.41 16,050.00 162,129,094.41

114,210,413.30

101,573,641.11


122

ANNUAL REPORT 2008

4.2 Inter-revenues and expenses

Unit : Baht

Type of transactions/company’s name Relationship

- The value of merchandise sales Amarin Book Center Co., Ltd. Amarin Food and Beverage Co., Ltd. Amarin Trading Co., Ltd.

Related Company Related Company Related Company

For the years ended December 31, 2008 2007 561,293,597.95 136,420.00

- 561,430,017.95

484,988,732.97 41,600.00 172,780.00 485,203,112.97

The prices of merchandises sold and purchased are equivalent to market prices less trade discount for the years ended December 31, 2008 and 2007 of 37.90%-50.00%, the same amount for both years, except book printing contracts that are chargeable at prices equal to that charged to outside parties. Unit : Baht Type of transactions/company’s name Relationship

For the years ended December 31, 2008 2007

- The value of other incomes Amarin Book Center Co., Ltd. Amarin Food and Beverage Co., Ltd.

Related Company

2,453,451.69

2,433,625.41

Related Company

56,074.80 2,509,526.49

51,401.90 2,485,027.31

The majority of the other incomes are related to sale of old books at 10% of the cover prices. 4.3 Nature of relationship

Company’s name

Relationship

Related by

Amarin Book Center Co., Ltd. Amarin Food and Beverage Co., Ltd. Amarin Trading Co., Ltd.

Related company Related company Related company

Direct shareholding 19% Indirect shareholding by Amarin Book Center Co., Ltd. Indirect shareholding by Amarin Book Center Co., Ltd.


123

ANNUAL REPORT 2008

5.  Cash and cash equivalents

Consisted of :

Unit : Baht

As of December 31, 2008 2007 Cash and bank deposits Investments in bills of exchange Investments in f ix-deposit accounts Investments in government bonds

17,227,491.38 65,000,000.00 210,000,000.00 49,961,209.93 342,188,701.31

14,482,453.39 90,000,000.00

104,482,453.39

As of December 31, 2008 and 2007, investments in bills of exchange had the maturity period less than 1 month, bearing interest rate of 2.50% per annum and 4.20% per annum respectively, and as of December 31, 2008, investments in promissory notes had the maturity period less than 3 month, bearing interest rate of 2.75% per annum and government bonds had the maturity period less than 3 months, bearing interest rate of 2.18% per annum.

6.  Short-term investment

As of December 31, 2007, short-term investment was in the form of government bonds, with the maturity period less than 6 month, bearing the interest rate of 3.12%-3.18% per annum.


124

ANNUAL REPORT 2008

7.  Trade accounts and notes receivable-net

As of December 31, 2008 and 2007, trade accounts and notes receivable are classif ied by aging overdue as follows : Unit : Baht As of December 31, 2008 2007

Trade accounts and notes receivable within credit term 197,465,808.15 Trade accounts and notes receivable classif ied by aging overdue as follows : 63,410,111.64 -  Less than 3 months -  More than 3 months to 6 months 3,507,588.97 -  More than 6 months to 12 months 3,510,935.49 -  Over 12 months 7,146,001.25 Total 275,040,445.50 Accrued income-book printing contracts 25,393,212.79 Total trade accounts and notes receivable 300,433,658.29 Less Allowance for returned books (2,001,586.80) Less Allowance for doubtful debts-trade accounts receivable (5,992,724.57) Less Allowance for doubtful debts-notes receivable (2,038,371.00) Net 290,400,975.92

241,789,561.59 66,734,084.30 6,892,693.52 2,696,991.44 9,613,275.73 327,726,606.58 19,823,465.23 347,550,071.81

(5,890,783.78) (2,059,811.00) 339,599,477.03

8.  Trade accounts and notes receivable-related companies-net

As of December 31, 2008 and 2007, trade accounts and notes receivable from related companies are classif ied by aging overdue as follows :Unit : Baht As of December 31, 2008 2007 Trade accounts and notes receivable under credit term 231,279,062.73 Trade accounts and notes receivable classif ied by aging overdue as follows : -  Less than 1 month - -  More than 1 month to 3 months - 1 1,658.00 -  Over 3 months Total trade accounts and notes receivable 231,290,720.73 Less Allowance for returned magazines (17,777,850.29) Net 213,512,870.44

142,776,120.19 35,247,736.79

11,658.00 178,035,514.98 (15,906,420.57) 162,129,094.41


125

ANNUAL REPORT 2008

9.  Inventories

Consisted of :

Unit : Baht As of December 31, 2008 2007 Consigned Goods F inished Goods Works in Process Printing Supplies Supplies F ilm Total

114,210,413.30 25,864,300.49 30,544,176.77 26,432,527.02 2,280,533.92 41,324.56 199,373,276.06

101,573,641.11 9,803,639.47 41,489,325.26 21,927,809.00 2,105,067.93 114,808.98 177,014,291.75

10.  Investments in equity instruments-net

Consisted of :

Unit : Baht Type of business

Amarin Book Center Co., Ltd. Book seller Less Operating result recognized until the reduced percentage of investment date Net Multimedia Creation Co., Ltd. Multimedia services Less Allowance for impairment of investment Net WPS (Thailand) Co., Ltd. Printing services Total

Percentage of shareholding

Cost Method As of December 31, 2008 and 2007

10,000

19%

1,900,000.00

30,000 500,000

19% 0.5%

(1,900,000.00) 2,896,578.00 (2,896,578.00) 2,500,000.00 2,500,000.00

Paid-up capita

For the year ended December 31, 2008 and 2007, the Company received no dividends from investment in equity instruments


126

ANNUAL REPORT 2008

11.  Long-term investment-net

Consisted of :

Unit : Baht As of December 31, 2008 Cost Amortized cost 10,000,000.00

Investment in debt instrument-held to maturity

10,175,311.55

As of December 31, 2008, the whole amount of debt instrument-held to maturity was in the form of government bond with the maturity period 3 years, bearing interest rate of 4.75% per annum. Debt instrument held to maturity with cost of Baht 7 million was pledged as collateral for the use of electricity.

12.  Property, plant and equipments-net

Consisted of :

Unit : Baht Land Factory Building Machines Tools Vehicles Off ice Assets in Total Improvements and Equipments Installment and Equipments and Construction

Cost : As of December 31, 2007 Purchases Transfer in Disposal Transfer out Written off As of December 31, 2008 Accumulate Depreciation : As of December 31, 2007 Depreciation for the year Disposal Written off As of December 31, 2008 Net Book Value : As of December 31, 2007 As of December 31, 2008

156,700,000.00

334,118,872.24

138,803,061.33

794,582,576.67

153,961,698.70

54,352,059.80

220,917,349.99

379,459.00

1,855,000.00

7,239,012.70

1,474,506.05

2,785,078.93

9,394,542.02

3,375,337.80

15,093,257.34

17,792,421.12

5,014,296.81

3,551,875.20

275,343.03

- (5,324,827.23) - (2,133,036.62) 155,898,376.87

- (773,563.07) - - 56,953,834.53

- - - -

158,555,000.00 - - - - -

- - -

346,372,181.75

- - -

143,829,442.58

(86,559.29) - - 797,556,439.34

1,853,815,077.73

59,009,155.96 - 9,470,939.90 (2,422,144.32) - (8,607,093.91) - (9,470,939.90) (9,470,939.90) (869,386.03) - (3,002,422.65) 233,348,501.84 8,700,940.22 1,901,214,717.13 629,424.86

(103,089,577.83) (33,968,334.47) (17,482,766.77) (6,970,860.91) - - - - (120,572,344.60) (40,939,195.38)

(465,381,178.44) (107,763,522.21) (38,604,475.37) (70,733,863.38) (19,775,618.19) (5,099,018.24) 86,556.29 5,321,370.98 773,560.07 - 2,132,990.62 - (536,028,485.53) (120,084,778.80) (42,929,933.54)

156,700,000.00

231,029,294.41

104,834,726.86

329,201,398.23

46,198,176.49

15,747,584.43

56,251,199.82

379,459.00

940,341,839.24

158,555,000.00

225,799,837.15

102,890,247.20

261,527,953.81

35,813,598.07

14,023,900.99

44,632,713.69

8,700,940.22

851,944,191.13

The Depreciation as appeared in income statements for the year ended December 31, 2007 December 31, 2008

(164,666,150.17) (27,299,644.25) 2,387,083.42 862,922.85 (188,715,788.15)

- - - - -

(913,473,238.49) (147,361,771.74) 8,568,570.76 2,995,913.47 (1,049,270,526.00)

160,634,853.63 147,361,771.74


127

ANNUAL REPORT 2008

As of December 31, 2008 and 2007, vehicles and tools with net book value of Baht 2.90 million and Baht 7.15 million respectively were under f inancial lease contracts as mentioned in the notes to f inancial statements no. 15. As of December 31, 2008 and 2007, land and construction in net book value of Baht 69.14 million and Baht 71.76 million respectively were pledged as collaterals against banking credit facilities received from commercial banks as mentioned in the notes to f inancial statements no. 23.1. In addition, the Company had assets which are fully depreciated but still in use for operation with cost in amount of Baht 407.67 million and Baht 342.50 million respectively.

13.  Land awaiting development

During the year 2008, the Company purchased land to be used for factory expansion in the future. However, as a result from the economic situation, the expansion of the new factory has been delayed.

14.  Computer software-net

Consisted of :

Unit : Baht Computer software

Cost : As of December 31, 2007 Purchases As of December 31, 2008 Accumulated depreciation : As of December 31, 2007 Amortized during the year As of December 31, 2008 Net book value : As of December 31, 2007 As of December 31, 2008

Computer software in development process

Total

14,924,538.93 2,660,727.90 17,585,266.83

6,457,095.65 1,629,813.71 8,086,909.36

21,381,634.58 4,290,541.61 25,672,176.19

(8,783,223.88) (4,056,138.16) (12,839,362.04)

- - -

(8,783,223.88) (4,056,138.16) (12,839,362.04)

6,457,095.65 8,086,909.36

12,598,410.70 12,832,814.15

6,141,315.05 4,745,904.79

Amortized computer software as appeared in income statements For the year ended December 31, 2007 For the year ended December 31, 2008

4,475,637.14 4,056,138.16


128

ANNUAL REPORT 2008

15.  Liabilities under f inancial lease contracts-net

Consisted of :

Unit : Baht As of December 31, 2008 2007 Liabilities under f inancial lease contracts -  due in less than 1 year -  due in 1- 5 years Total liabilities under f inancial lease contracts Less Future interest charge on the f inancial lease contracts Present value of liabilities under f inancial lease contracts Less Current portion of long-term liabilities Liabilities under f inancial lease contracts-net

2,811,746.00 835,842.27

5,005,674.00 3,647,588.27

3,647,588.27 (362,653.47) 3,284,934.80 (2,569,074.09) 715,860.71

8,653,262.27 (943,970.43) 7,709,291.84 (4,363,384.40) 3,345,907.44

The Company entered into f inancial lease contracts on vehicles, camera with accessories and computer equipments for period of 3-5 years with two leasing companies. As of December 31, 2008 and 2007, these f inancial lease contracts consist of 5 contracts, which the total leasing fee must be paid at Baht 0.42 million per month for both periods. The Company has an option to buy the vehicle once the term ends.

16.  Dividend paid

Unit : Baht

Dividend Approved by Dividend Paid Dividend Dividend paid on Paid Per Share The dividend were determined basing on the prof it of the year 2006 The dividend were determined basing on the prof it of the year 2007

The annual general shareholders’ meeting for the year 2007 held on april 27, 2007 The annual general shareholders’ meeting for the year 2008 held on april 17, 2008

160,000,000

0.80

May 25, 2007

160,000,000

0.80

May 9, 2008


129

ANNUAL REPORT 2008

17. Legal reserve

According to Public Company Limited Act B.E. 2535, the Company has to appropriate part of annual net prof it as legal reserve for amount not less than 5% of annual net prof it after deduction of accumulated def icit brought forward (if any) until the accumulated balance of this reserve has reached the amount not less than 10% of the registered capital. This legal reserve could not be used as dividend payment.

18.  Directors’ remunerations

The directors’ remuneration is benef its paid to directors of the Company as per section 90 of the Public Companies Limited Act excluding salaries and related fringe benef its paid to executive directors.

19.  Corporate income tax

In accordance with Royal Decree No.475 (B.E. 2551) dated August 6, 2008, it determined the grant of a reduction of the corporate income tax rate from 30% to 25% for the portion of the net prof it not more than Baht 300 million for three consecutive accounting periods commencing from the accounting period begin on or after January 1, 2008. The Company applied the said benef it in the calculation of the corporate income tax for the year 2008 (For the year 2007, corporate income tax is calculated by 30%).

20.  Natures of expense

The significant natures of expense are : Unit : Baht

As of December 31, 2008 2007 Salaries, wages and other benef its to employees Depreciation and amortization charges Article, illustration, translation and copyright fees Raw material and supplies used Changes in f inished goods and work in process

396,092,597.26 151,417,909.90 107,325,521.93

354,138,871.25 165,110,490.77 79,038,495.24

442,091,006.62 (17,752,284.72)

408,541,370.29 (9,501,480.87)


130

ANNUAL REPORT 2008

21.  Provident fund

The Company and employees of the Company have jointly established a provident fund in accordance with the Provident Fund Act B.E. 2530. The Company and the employees contributed to the fund monthly at the rate of 3.00% of basic salary. The fund, which is managed by SCB Asset Management Co., Ltd. (Year 2008 : Thanachart Fund Management Co., Ltd.) will be paid to the employees upon termination in accordance with the fund rules. During the years ended December 31, 2008 and 2007, the Company’s contribution amounted to approximately Baht 6.04 million and Baht 4.70 million respectively.

22. Disclosure of sectoral business operations

The Company undertakes operations in production and distributions of books, arrangement of travel business, training and seminars, organizing exhibitions and television program’s production which operation in one geographical area, namely Thailand were as follows : Informations about sectoral business operations For the years ended December 31, 2008 and 2007 Unit : Million Baht Production and Travel Business and Organizing Exhibitions and Total Distribution of Books Trainning and Seminars Television Program’s Production 2008 2007 2008 2007 2008 2007 2008 2007

Revenues from operation 1,715.94 Prof it(loss) from operation 328.73 Interest expenses Corporate income tax Net prof it As of December 31, Property,plant and equipments-net 837.11 Central assets Total assets

1,572.76

47.40

31.21

112.78

111.31

1,876.12

1,715.28

288.97

(0.40)

0.45

47.78

36.31

376.11

325.73

(0.36)

(0.65)

(99.91)

(99.71)

275.84

225.37

923.71

12.57

14.03

2.26

2.60

851.94

940.34

1,184.71

1,026.36

2,036.65

1,966.70


131

ANNUAL REPORT 2008

23.  Obligations and contingent liabilities

23.1 In addition to liabilities as reflected in the f inancial statements, the Company constitutes other obligations and contingent liabilities due to banks as follows: -

As of December 31, 2008 2007 Million USD Million Baht Million USD Million Baht Letters  of  Guarantee Letters  of  Guarantee  (Unutilized) Forward foreign exchange contracts (Unutilized) Letters of credit (Unutilized) Bank overdrafts and short-term loans (Unutilized)

- - 1.25 - -

9.14 27.86

- 50.00 290.00

- - 1.25 - -

15.35 21.65

50.00 270.00

The Company has pledged parts of land together with the constructions as mentioned in the notes to the f inancial statements no.12 as collaterals against the said credit facilities received and obligation.


132

ANNUAL REPORT 2008

23.2  Other contracts 23.2.1  Engagement contract -  As of December 31, 2008, the Company entered into building construction and interior decoration with building system agreements with 4 companies for the contractual value of Baht 10.67 million and the remaining work under the contract was Baht 7.06 million. - As of December 31, 2008, the Company entered into machine installation agreement with a company for the contractual value of Baht 13.61 million and the remaining work under the contract was Baht 9.53 million.   -  As of December 31, 2008 and 2007, the Company entered into literary work engagement contract for the total contractual value of Baht 3.80 million and the remaining work under the contract were Baht 0.26 million and Baht 0.89 million respectively. 23.2.2  Copyright contract The Company entered into agreements with the owners of various successful works in payment of consideration at the percentage of number of publications produced. 23.2.3  Purchase and sale contract The Company entered into a contract to purchase software program package inclusive of after-sale service for the total value of Baht 9.67 million. As of December 31, 2008, and 2007, the remaining value due under the contract is Baht 1.69 million and Baht 3.99 million respectively.

24. F inancial instruments

Policy on f inancial risk management The Company possesses risk regarding to the change of market interest rate and in currency exchange rate and from nonperformance of contractual obligations by counter parties. The Company will consider using appropriate f inancial instruments when it considers necessary to manage such risks. However, the Company does not have any policy to hold or issue any f inancial instruments for speculation or for trading. Risk on interest rates The Company has interest rate risk due to deposits with f inancial institutions, investments and liabilities under f inancial lease contracts. The Company is therefore subject to risk in relation to floating interest rates which may be fluctuate with market rates in the future which may affect upon the operating results and cash flows of the Company.


133

ANNUAL REPORT 2008

As of December 31, 2008 and 2007, the interest rates of the f inancial instruments can be shown as follow :Unit : Million Baht As of December 31, 2008 F ixed interest rate Floating within more than more than Interest rate 1 year 1 year to 5 years 5 years

Total

Interest rate (% p.a.)

F inancial assets Cash at banks Short-term investments Long-term investments

- 324.96 - 324.96

- - 10.18 10.18

- - - -

5.49

5.49

0.50

- - 5.49

324.96 10.18 340.63

2.18  -  2.75 4.75

0.72 0.72

- -

- -

3.29 3.29

7.16  -  9.54

F inancial liabilities

Liabilities under f inancial lease contracts 2.57 2.57

Unit : Million Baht

As of December 31, 2007 F ixed interest rate Floating within more than more than 1 year 1 year to 5 years 5 years Interest rate

Total

Interest rate (% p.a.)

F inancial assets Cash at banks Short-term investments

- 278.87 278.87

- - -

- - -

10.06

- 10.06

10.06 278.87 288.93

0.50 3.12  -  4.20


134

ANNUAL REPORT 2008

Unit : Million Baht As of December 31, 2007 F ixed interest rate Floating within more than more than 1 year 1 year to 5 years 5 years Interest rate F inancial liabilities Liabilities under f inancial lease contracts 4.36 4.36

Total

Interest rate (% p.a.)

3.35 3.35

- -

- -

7.71 7.71

7.16  -  9.54

Risk on exchange rates Regarding risks on exchange rates, it is mainly involved with purchases of assets in foreign currencies. As of December 31, 2008 and 2007, the Company obtained liabilities in foreign currencies as follows : As of December 31, Currency 2008 2007 US Dollar

89,586.82

99,710.20


135

ANNUAL REPORT 2008

Risk on credit provision The Company takes risk from credit provision in relation to trade accounts receivable. However, since the Company always has conservative policy in granting sound credit provision and carefully considered the appropriated allowance for doubtful debts; thus, it believes that the risk which the debtors will not repay is minimal. Fair value Since the f inancial assets and liabilities are mainly in short-term types. Hence, the book values of such f inancial assets and liabilities presented herein do not materially differ from fair values.

25.  Capital management

The primary objective of the Company’s capital management is to maintain its ability to continue as a going concern and to maintain an appropriate capital structure. As of December 31, 2008, dept to equity ratio in the f inancial statements is 0.22 : 1.

26.  Approval of f inancial statements

These f inancial statements have been approved for issuance by the Company’s board of directors on February 19, 2009.


“WE WORK FOR THE HAPPINESS AND PROSPERITY OF OUR SOCIETY”

PRODUCTION  :  AMARIN  PUBLISHING  SERVICES  Amarin  Printing  and  Publishing  Public  Co.,  Ltd.  65/101  -  103  Chaiyaphruk  Rd.  Taling  Chan,  Bangkok  10170  Tel.  +66-2422-9999  Ext.  4181,  4182  Fax +66-2422-9999  Ext.  4185 PRINTED  BY  : Printing  Business  Division,  Amarin  Printing  and  Publishing  Public  Co.,  Ltd.  65/16  Chaiyaphruk Rd.  Taling  Chan,  Bangkok  10170  Tel.  +66-2422-9000,  +66-2882-1010  Fax +66-2433-2742, 0-2434-1385  E-mail:  info@amarin.co.th  Homepage:  www.amarin.com

Amarin 08  

AMARIN_2008 AMARIN PRINTING & PUBLISHING PCL Annual Report 2008

Read more
Read more
Similar to
Popular now
Just for you