G J Steel Public Company Limited and its Subsidiaries Notes to the financial statements For the years ended 31 December 2009 and 2008 Legal reserve Section 116 of the Public Companies Act B.E. 2535 requires that a company shall allocated not less than 5% of its annual net profit, less any accumulated losses brought forward, to a reserve account (“legal reserve”), until this account reaches an amount net less than 10% of the registered authorised capital. The legal reserve is not available for dividend distribution.
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Segment information Segment information is presented in respect of the Company’s geographical segments based on the Company’s management and internal reporting structure. In presenting information on the basis of geographical segments, segment revenue is based on the geographic location of customers. Revenue and gross profit/loss, based on geographical segment, in the financial statements for the years ended 31 December 2009 and 2008 were as follows: Consolidated Separate and Separate financial financial statements statements 2009 2008 (in thousand Baht)
Segment revenue Domestic Export Total Segment gross profit/(loss) Domestic Export Total
10,804,566 1,509,650 12,314,216
19,601,063 6,513,988 26,115,051
(3,281,860) (638,623) (3,920,483)
679,292 369,616 1,048,908
Business segments Management considers that the Company operates in a single line of business, namely manufacturing of flat-rolled steel products, and has, therefore, only one major business segment.
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Selling expenses Consolidated Separate and Separate financial financial statements statements 2009 2008 (in thousand Baht) Packing expenses Domestic shipping expenses Export shipping expenses Total
3,715 96,155 58,878 158,748
17,084 189,724 324,007 530,815
G J Steel Public Company Limited
Annual Report 2009
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