Issuu on Google+

รายงานประจำปี 2552

annual report 2009

LIGHTING & EQUIPMENT PUBLIC COMPANY LIMITED


FAIRNESS

QUALITY

TEAM SPIRIT

อุดมการณ

Philosopy

- ยึดมั่นในความเปนธรรม - ใส ใจในคุณภาพ - รวมกันทำงานเปนทีม

- Uphold fairness. - Dedicate to quality - Work together as a team

วิสัยทัศน

Vision Statement

- L&E เปนผูนำดานธุรกิจไฟฟาแสงสวางในภูมิภาคอาเซียน ที่ดำเนิน ธุรกิจในดานนี้อยางครบวงจร

พันธกิจ

- มีสินคาแสงสวางตางๆที่หลากหลายและครบครัน สามารถ ตอบสนอง ความตองการของทุกกลุมลูกคา - มีเครือขายการตลาดที่ครอบคลุม สามารถใหบริการลูกคา กลุมตางๆ ไดอยางทั่วถึง - มีบริการดานไฟฟาแสงสวางในรูปแบบตางๆ อยางครบ วงจร เพื่อใหลูกคาไดรับประโยชนมากที่สุด - มีโรงงานและหองปฎิบัติการทดสอบเปนของตัวเอง สามารถ พัฒนา และผลิตสินคาใหมๆ ปอนตลาดไดอยางตอเนื่อง

- To be the leading total lighting solution provider in ASEAN.

Mission Statement - Offer diverse and complete range of lighting products to meet every sector’s requirement. - Establish well-covered marketing networks accessible to various group of customers. - Provide fully integrated services for customer’s advantage. - Establish high standard manufactering facilities and laboratory to facilitate new products development and innovation.


Contents

2



40

General Information 5



Corporate Governance Practice 55

Financial Highlights 6

 Report from Board of Directors

10

 Board of Directors

16

 Management Committee

20

56

57

 Major Activities for 2009

31

 Major Shareholders and Dividend Policy

32

 Nature of Business

33

 Revenue Structure

34

 Industrail Outlook and Competitive Environment

37

 Risk Factors

 Explanation and Analysis from Management

61

 Financial Statements

141

 Corporate Governance Policy

Performance Highlights for 2009 26

 Report from Audit Committee

 

 Report from Board of Directors Relative to Financial Reports

Organization Chart 21



157

 Codes of Conduct




 

Company Name Lighting & Equipment Public Company Limited

          

Head Office 539/2, 16,17/F, Gypsum Metropolitan Tower, Sriayudhya Rd., Rajthevee, Bangkok 10400 Tel : (66) 0 2248 8133, (66) 0 2642 5092 Fax : (66) 0 2248 8144, (66) 0 2642 5091 Website: www.l-and-e.com, www.lighting.co.th

  

Become Public Company April 8, 2004 Registered Number : 01075747000338

 

Listed in the Stock Exchange of Thailand August 24, 2004

     

Type of Business Manufacturer, Importer, Supplier and Exporter of all lighting products and accessories.The company has also provided fully integrated services in light and lighting for customers' advantage.

Websit: www.l-and-e.com, www.lighting.co.th

2

General Information

Annual Report 2009




General Information

   

Registered Capital 305,555,555 Baht Number of Ordinary Share : 61,111,111 Par Value : Baht 5.0

   

Paid-up Capital 229,173,665 Baht Number of Ordinary Share : 45,834,733 Par Value : Baht 5.00

    

Branch 1st Branch : Warehouse and Distribution center 104, 104/2 - 104/4 Phaholyotin Km. 47 Road, Klong Naung, Klong-Luang, Phatumthanee 12120 Tel : (66) 0 2909 1070, Fax : (66) 0 2909 1077

   

2nd Branch : Warehouse 123/7-9 Phaholyotin Km. 47 Road, Klong Naung, Klong-Luang, Phathumthanee 12120 Tel : (66) 0 2909 1070, Fax : (66) 0 2909 1077

   

3rd Branch : Lighting Solution Center 1st F. Pakin Building, No.9 Room 104,201 Ratchadapisek Road, Dindaeng District, Bangkok 10400 Tel : 66) 0 2246 1164, Fax : (66) 0 2246 1161

   

Investment in Subsidiary Company L&E Manufacturing Co., Ltd. Registered Capital 90,000,000 Baht Share Holding Proportion : 99.99%

    

Registrar Thailand Securities Depository Co.,Ltd. The Stock Exchange of Thailand Building, 62 Rachadapisek Road, Klongtoey, Bangkok 10110 Tel : (66) 0 2229 2800 Fax : (66) 0 2359 1271

www.lighting.co.th

3




  

4

General Information

Auditor 1. Mr. Veerachai Ratanajaratkul License No. 4323 or

 

2. Mr. Santi Pongjareanpit License No. 4623

นายเอกสิทธิ์ ชูธรรมสถิตย 

3. Mr. Ekkasit Chuthmasatid License No. 4195

   

KPMG Phoomchai Audit Ltd. Empire Tower , 22nd Floor 195 South Sathorn Road Yannawa, Sathorn Bangkok 10120 Tel : (66) 0 2677 2000 Fax : (66) 0 2677 2222

    

Finance Advisor

     

Legal Advisor

    

Investor Relations Office

            

Member of Professional Association

Annual Report 2009

JayDee Partner Limited Ocean Tower 1, 11th Floor, 170/30 Soi Sukhumvit 16 Ratchadapisek Road, Klongtoey, Bangkok 10110 Tel : (66) 0 2661 8805-5 Fax : (66) 0 2661 8813

Kamthorn Surachet & Somsak Ltd. Suite 31A, Sinn Sathorn Tower, 77/132 KrungthonBuri Road, Klongtonsai, Klongsarn, Bangkok 10600 Tel : (66) 0 2440 0288 Fax : (66) 0 2440 0298

Ms. Chitlada Jariyavidyanont Tel : (66) 0 2248 8133 ext. 1001 Fax : (66) 0 2248 8144 E-mail : chitladaj@lighting.co.th

Thai Illuminating Engineering Association Member No. C0041 Thai Electrical & Mechanical Contractors Association Member No. 11325 Thai Chamber of Commerce & Board of Trade of Thailand Member No. 4408 Federation of Thai Industries (Subsidiary Company is member) Member No. SN5203 Listed Companies Association Thai Institute of Directors Association Thai Investor Relations Club Thai Company Secretary Club




Financial Highlights

 2550 2007

2551 2008

2552 2009

Revenue from Sale

1,412.10

1,610.99

1,464.93

Total Revnue

1,423.38

1,623.72

1,475.61

     

Unit : Million Baht

     

Unit : Baht

     

Financial Ratio

Net Pro fit

41.44

48.06

14.17

1,136.95

1,213.95

1,138.12

42730

450.62

445.56

Par Value

5.00

5.00

5.00

Earning Per Share

0.90

1.05

0.31

Dividend Per Share

0.54

0.42

0.25

24.81

26.49

24.83

9.32

9.83

9.72

Total Assets Shareholders' Equity

Total Assets Per Share Shareholders' Equity per Share

Net Profit Margin

2.93%

3.00%

0.97%

27.39%

26.28%

25.18%

3.59%

4.11%

1.20%

Net Profit / Total Assets

10.07%

11.01%

3.16%

Net Profit / Shareholders' Equity

1.66 : 1

1.69 : 1

1.56 : 1

Gross P rofit Margin

Debt / Equity

1800 1600

   

1300

1,610.99 1,464.93

1,412.10

1400

95

1100

85

1200

75

1000

1000

65

900

800

55 45

600

0

700 600

25

200

14.17

15 2550 2007

2551 2008



Revenue from Sale

2552 2009

5

1,138.12

1,136.95

800

48.06 41.44

35

400

1,213.95

1200

500 400

2550 2007

2551 2008

2552 2009

2550 2007

2551 2008





Net Profit

Total Assets

2552 2009

www.lighting.co.th

5




Report from Board of Director

 ผ  

  Mr. Yong Suptuaychone Chairman




Report from Board of Director

        ร า งต า งๆ                                        ุน  ใ         และมุ  ง                                                                              

www.lighting.co.th

7




Report from Board of Director

With regard to product expansion, LED will still be the rising star

  Mr. Pakorn Borimasporn Chief Executive Officer

www.lighting.co.th

7




Report from Board of Director

In 2009, Thailand was impacted by the global economic and financial crisis, as a result its economy had contracted at the rate of 3%. The continual slow down in construction of hotels, resorts, manufacturing factories, department stores and retail stores etc., together with the strict control of trade credit granted to customers to avoid possible bad debt that may result from the crisis had caused the company's revenue declined by 9%. During the circumstance that was unfavorable to business expansion, the company had taken the opportunity to renovate manufacturing facilities and improved manufacturing process to reduce production cost, as well as to develop and update the company's information technology sothat it will be more flexible and effective, such as employees are now able to perform their work at any location outside the office through the updated information system, and the company has reduced the expenses that will not impact employee such as the communication expenses by replacing the use of paper by computer which has significantly reduced the expenses and will consequently improve the operation in 2010. The global economic trend is expected to improve in 2010, and it is believed that the government stimulus measures will help expand Thai economy at the rate of 3-4%, i.e. The Thai KhamKhaeng project the Farmer Revenue Assurance project, the Mass Transit Construction project and other construction projects which will have direct impact to the company's revenue. The result from manufacturing facilities renovation and manufacturing process improvement to reduce production cost and the information technology update as well as the utilization of new technologies to improve operating efficiency and reduce expenses have made the company in the position to harvest any new opportunities available in 2010. The company will maintain the leadership in project business in 2010 and is determined to expand the retail business through its Lighting Solution Center (LSC) which was established in 2009 and the revenue from which has been improving constantly. As for export business that the company has promoted for many years, the products and services have gained more confident from customers and the trend has become more obvious since second half of 2009. Therefore, it is expected that the growth from export business will be leapfrogged in 2010. With regard to product expansion, LED will still be the rising star, the company will seriously focus on this business by expanding R&D activities, develop manufacturing process as well as invest in modern and efficient machines and equipment to cope with to the rapidly increase of LED market demand. It is our great pleasure to advise that on January 200, the company's laboratory have been granted ISO/IEC17025 accreditation, which means that the product test result certified by this laboratory will be recognized and accepted by entities through out the world. As a result, the company's goal of doing integrated business to cover Upstream, Midstream and Downstream has been fully completed as planned. Lastly, The Board wish to thanks all the shareholders ho have always provided good support to the company and would also like to confirm that we will give special priority to the good dividend payout as announced in the company's policy. The Board will manage the company with transparency, with integrity and due care to create wealth and grow the company constantly and sustainably.

www.lighting.co.th

9




Board of Director

Board of Director

 

Mr. Yong Suptuaychone Chairman

 

Shareholding 16.87%



Education



Bachelor of Economics Thammasat University



Experience

   

1993-Present Chairman, Lighting & Equipment Public Co., Ltd. 1989-Present Chairman, Second Home Resort Co., Ltd.

 

Mr. Pakorn Borimasporn Chairman of Executive Committee

 

Shareholding 12.37%



Eduation

  

Bachelor of Electrical - Engineering Chulalongkorn University Master of Electrical Engineering Chulalongkorn University DCP' 17/2002, CMA 3/2006, EDP 1/2008



Experience

        

10 Annual Report 2009

1993-Present Director, Chief Executive Officer Lighting & Equipment Public Co., Ltd. 1999-Present Director, Chief Executive Officer L&E Manufacturing Co., Ltd. 1993-Present Independent Director, Chairman of the Audit Committee Nationa Multimedia Group Public Company Limited 2004-Present Chairman, Chairman of the Audit Committee Pornprom Metal Public Co., Ltd.




 

Mr. Anant Kittivittayakul Executive Director

 

Shareholding 4.22%

Board of Director



Education

 

Bachelor of Electrical Engineering Chulalongkorn University DCP' 54/2005



Experience

   กรรมการ

1993-Present Director, Managing Director Lighting & Equipment Public Co., Ltd. 1999-Present Director, L&E Manufacturing Co., Ltd.

 

Mrs. Napaporn Vimon-Anupong Executive Director

 

Shareholding 4.65%



Education

 

Bachelor of Science Chulalongkorn University DAP' 19/2004, DCP 108/2008



Experience

  

1993-Present Director, Deputy Managing Director Lighting & Equipment Public Co., Ltd.

www.lighting.co.th

11




 

Mr. Gritsada Suptuaychone Executive Director

 

Shareholding 2.33%

Board of Director



Education

  

Bachelor of Electrical Engineering King Mongkut's Institute of Technology Ladkrabang DAP' 19/2004, DCP'19/2009



Experience

   บริษัท

2004-Present Director, Lighting & Equipment Public Co., Ltd. 1997-Present Managing Director, L&E Manufacturing Co., Ltd.

     

Mr. Utis Chanchenchop Chairman of Audit Committee Shareholding 0.00%



Education

  

Bachelor of Electrical Engineering Rajabhat Phanakhon Institute DAP' 13/2004, DCP'19/2009



Experience

      

12 Annual Report 2009

2004-Present Chairman of the Audit Committee Lighting & Equipment Public Co., Ltd. 1977-1997 Director of Property and General Services Department Metropolitan Electricity Authority 1977-Present Chairman Sky Commercial Co., Ltd.




Board of Director

  

Mr. Boonlert Khawchareonporn Chairman of Corporate Governance and Nomination Committee Audit Committee

 

Shareholding 0.00%



Education

 

Bachelor of Electrical Engineering Chulalongkorn University DAP' 13/2004, DCP 108/2008



Experience

    

2007-Present Chairman of Corporate Governance and Nomination Committee, Audit Committee, Lighting & Equipment Public Co., Ltd. 1966-2003 Vice Governor, The Provincial Electricity Authority

  

Mrs. Renu Buakird Corporate Governance and Nomination Committee Audit Committee

 

Shareholding 0.00%

         

Education Bachelor of Accounting Thammasat University Master of Business Administration Lincon University, U.S.A. DAP' 13/2004 Experience 2007-Present Corporate Governance and Nomination Committee, Audit Committee, Lighting & Equipment Public Co., Ltd. 1969-2001 Executive Accounting & Finance Manager Thai Toshiba Electric Industries Co., Ltd..

www.lighting.co.th

13




 

Mr. Sitthichai Kraisithisirin Director

 

Shareholding 2.25%

Board of Director



Education

  

Bachelor of Law Chulalongkorn University Master of Business Administration Chulalongkorn University DCP' 5/2001



Experience

   ส

1993-Present Director, Lighting & Equipment Public Co., Ltd. 1977-Present Director, Surapon Food Public Co., Ltd.

กัลยารัตน สุริยสัตย 

Mrs. Kalayarat Suriyasat Director

 

Shareholding 0.00%



Education

  

B.A. Economics -Wellesley College, Mass., U.S.A. M.A. Economics -Georgetown University Washington, D.C., U.S.A. DAP 13/2004



Experience

       

2005-Present Director, Lighting & Equipment Public Co., Ltd. 1995-Present Vice President, Thai Toshiba Lighting Co., Ltd. 1985-1989 Bangkok Bank 1983-1985 The World Bank, U.S.A

14 Annual Report 2009




นายศุภชัย วัฒนางกูร 

Mr. Supachai Watanangura Independent Director

 

Shareholding 0.00%

Board of Director



Education

วิทยาศาตรบัณฑิต มหาวิทยาลัยเซอรเรย อังกฤษ วิทยาศาสตรมหาบัณฑิต มหาวิทยาลัยแครนฟลด อังกฤษ DCP/EDP รุน 5

MSc. In Welding Technology from Cranfield University Bedfordshire, England DCP and ACP Certification EDP’ 5 Experience

 2552-ปจจุบัน บมจ.ไลทติ้ง แอนด อีควิปเมนท ที่ปรึกษาบริษัท ไทยพลาสติกและเคมีภัณฑ จำกัด (มหาชน) ประธานกลุมอุตสาหกรรมปโตรเคมี สภาอุตสาหกรรมแหงประเทศไทย กรรมการบริหารในสถาบันปโตรเลียมแหงประเทศไทย กรรมการผูทรงคุณวุฒิในองคการบริหารจัดการกาซเรือนกระจก (องคการมหาชน) กรรมการอิสระและประธานคณะกรรมการตรวจสอบ บริษัท คอบรา อินเตอรเนชั่นแนล จำกัด

2009- Present Independent Director, Lighting & Equipment Public Co., Ltd. 1995-2005 General Manager of Thai Plastic and Chemicals Public Company limited Present Advisor to Thai Plastic and Chemicals Public Company Limited Member of the Board of Directors of Thailand Greenhouse Gas Management Organization (Public Organization) Independent Director and Chairman of the Audit Committee of Cobra International Co., Ltd.

www.lighting.co.th

15


คณะผูบริหาร

Management Committee

Management Committee

 ���

Mr. Pakorn Borimasporn Chairman of Executive Committee

 

Shareholding 12.37%



Eduation

            

Bachelor of Electrical - Engineering Chulalongkorn University Master of Electrical Engineering Chulalongkorn University DCP' 17/2002, CMA 3/2006, EDP 1/2008 Experience 1993-Present Director, Chief Executive Officer Lighting & Equipment Public Co., Ltd. 1999-Present Director, Chief Executive Officer L&E Manufacturing Co., Ltd. 1993-Present Independent Director, Chairman of the Audit Committee Nationa Multimedia Group Public Company Limited 2004-Present Chairman, Chairman of the Audit Committee Pornprom Metal Public Co., Ltd.

 

Mr. Anant Kittivittayakul Executive Director

 

Shareholding 4.22%



Education

 

Bachelor of Electrical Engineering Chulalongkorn University DCP' 54/2005



Experience

   

1993-Present Director, Managing Director Lighting & Equipment Public Co., Ltd. 1999-Present Director, L&E Manufacturing Co., Ltd.

16 Annual Report 2009


คณะผูบริหาร

Management Committee

 

Mrs. Napaporn Vimon-Anupong Executive Director

 

Shareholding 4.65%



Education

 

Bachelor of Science Chulalongkorn University DAP' 19/2004, DCP 108/2008



Experience

  

1993-Present Director, Deputy Managing Director Lighting & Equipment Public Co., Ltd.

 

Mr. Gritsada Suptuaychone Executive Director

 

Shareholding 2.33%



Education

  

Bachelor of Electrical Engineering King Mongkut's Institute of Technology Ladkrabang DAP' 19/2004, DCP'19/2009



Experience

   บริษัท

2004-Present Director, Lighting & Equipment Public Co., Ltd. 1997-Present Managing Director, L&E Manufacturing Co., Ltd.

www.lighting.co.th

17


คณะผูบริหาร

Management Committee

 

Mr. Anak Sueyingkarn Executive Business Development Director

 

Shareholding 0.19%



Education

 

Bachelor of Electrical Engineering King Mongkut's Institute of Technology Ladkrabang



Experience

 

1994-Present Executive Business Development Director Lighting & Equipment Public Co., Ltd.

    

Mrs. Saowanee Kosol Executive Human Resources and Administration Director Shareholding 0.19%



Education

 

Bachelor of Business Administration Majored in Finance Bangkok University



Experience

  

1993-Present Executive HR & Administration Director Lighting & Equipment Public Co., Ltd., Company Secretary

18 Annual Report 2009


Management Committee

 

Miss Punyamon Srirattanamongkol Executive Accounting and Finance Director

 

Shareholding 0.19%



Education



Bachelor of Accounting Thammasat University



Experience

 

1995-Present Executive Accounting & Finance Director Lighting & Equipment Public Co., Ltd.

 

Mr. Siriphong Thititanaphong Marketing Director

 

Shareholding 0.19%



Education



Bachelor of Electrical Engineering King Mongkut's University of Technology Thonburi

 Experience

 

1993-Present Marketing Director Lighting & Equipment Public Co., Ltd.

 

Mr. Suchart Sidrojanarith Product Director

 

Shareholding 0.19%



Education



Bachelor of Electrical Engineering King Mongkut's University of Technology Thonburi



Experience

 

1993-Present Product Director Lighting & Equipment Public Co., Ltd.

www.lighting.co.th

19


Organization โครงสร้างการบริ หาร Performance Highlights forChart 2009

 

  

 

 

 

 

   

  

   

  

  

20 Annual Report 2009

  

  

  




Performance Highlights for 2009

02

01

04

1. โรงแรม สปริงฟลด บีช รีสอรท, หัวหิน Springfield Beach Resort, Huahin

2. โรงแรม เซ็นทารา แกรiy’นด มิราจ บีช รีสอรท, พัทยา Grand Mirage Beach Resort pattaya

03

05

3. อาคารหวั่งหลี, ถนนสุรวงศ Wanglee Building, Surawong Rd.

5. นวมินทรซิตี้ อเวนิว Nawamin City Avenue

4. บิ๊กซี ซูเปอรเซ็นเตอร, นวนคร Big C Supercenter, Navanakorn www.lighting.co.th

21




06

Performance Highlights for 2009

07

08

6. ลันตา รีสอรท เกาะลันตา จังหวัดกระบี่ Andaman Lanta Resort, Krabi

22 Annual Report 2009

7. โรงแรมชาเทรียม, เจริญกรุง Chatrium Hotels and Residences, Charoenkrung

8. ธนาคารกสิกรไทย (สำนักงานใหญราชบูรณะ) Kasikorn bank (Head Quarter Ratburana)




Performance Highlights for 2009

09

10

11

9. โรงแรมดุสิตดีทู บาราคูดา, พัทยา DusitD2 baraquda, pattaya

10. ศาลาทะเล รีสอรท แอนด สปา, กระบี่ Sala Talay Resort & Spa, Krabi

11. เฮลทแลนดสปา แอนด มาสสาจ, กรุงเทพฯ Health Land Spa and Massage, Bangkok

www.lighting.co.th

23




12

Performance Highlights for 2009

13

14

15

16

12. อินเด็กซลิฟวิ่งมอลล รังสิต Index Living Mall Rangsit 13.

โฮมเวิรค ราชพฤกษ Homework Ratchapruek

24 Annual Report 2009

14. เอสบีเฟอรนิเจอร, คริสตัล ดีไซน เซ็นเตอร SB Funiture, Crystal Design Center

15. จีซี ชอป, เซ็นทรัลเวิลด GC Shop, CentralWorld

16. พาวเวอร มอลล, เอ็มโพเรียม Powermall Emporium, Bangkok




Performance Highlights for 2009

17. ปตท. ยูที คัพ, ระยอง PTT UT CUP, Rayong 18. ฟวเจอรพารค, รังสิต Future Park, Rangsit 19. วัดมหาธาตุราชวรวิหาร,

ราชบุรี

Wat Mahathat, Ratchaburi

17

18

19

20

21

20. อาวนางรีสอรท, กระบี่ Ao Nang Resort, Krabi

21. ศาลเจาพอหลักเมือง, สุพรรณบุรี Dragon descendants Museum, Suphanburi www.lighting.co.th

25




Major Activities for 2009

9/1/2009

คุณศิริวัฒนหวังสุขผูจัดการแผนกออกแบบใหการตอนรับ และบรรยายเรื่องพื้นฐานการสองสวางใหกับคณะอาจารยและ นักศึกษาจากคณะวิศวก���รมศาสตรไฟฟามหาวิทยาลัยเทคโนโลยี พระจอมเกลาพระนครเหนือ

Mr. Siriwat W. Welcome address and lecture on Light and Lighting Application to students from Faculty of Engineering, King Mongkut's University of Technology North Bangkok

16/1/2009

พิธีทำบุญเลี้ยงพระณ

Soft Openning at Lighting Solution Center and offering food to buddhist monk.

23/1/2009

คุ ณ ปกรณ  บริ ม าสพรร ว มพิ ธ ี เ ป ด ห อ งสมุ ด  ดร.กร สุริยสัตย คณะวิศวกรรมศาสตร จุฬาลงกรณมหาวิทยาลัย

Mr. Pakorn Borimasporn, CEO. attending the opening ceremony of the Dr.Kor n Suriyasat Library at Chulalongkorn University.

29/1/2009

คุณศิริวัฒนหวังสุขผูจัดการแผนกออกแบบใหการตอนรับและ บรรยายเรื่องพื้นฐานการสงสวางใหกับคณะอาจารยและนักศึกษา จากคณะวิ ศ วกรรมศาสตร  ไฟฟ า มหาวิ ท ยาลั ย บู ร พา นำโดยอาจารยปราณีวงศจันทรตะ

6/2/2009

คุณศิริวัฒนหวังสุขผูจัดการแผนกออกแบบใหการตอนรับและ บรรยายที่โชวรูมอาคารภคินทใหกับคณะอาจารย และนักศึกษาจากคณะวิศวกรรมศาสตรไฟฟามหาวิทยาลัย เทคโนโลยีพระจอมเกลาธนบุรี

Mr. Siriwat W. Welcome address and Lecture on Lamp and fixture selection to the instructors and students from Faculty of Architecture, KMIT, Thonburi.

13/2/2009

คุณศิริวัฒนหวังสุขผูจัดการแผนกออกแบบใหการตอนรับและ บรรยายเรื่องพื้นฐานการสงสวางพาชมโชวรูมอาคารภคินท และเข า เยื่ ย มชมศู น ย ป ฏิ บ ั ต ิ ก ารทดสอบไฟฟ า แสงสว า งและ กระบวนการผลิ ต โคมไฟของที ่  แจ ง วั ฒ นะให ก ั บ คณะอาจารย แ ละนั ก ศึ ก ษาจากคณะวิ ศ วกรรมศาสตร  และสถาปตยกรรมศาสตรมหาวิทยาลัยเทคโนโลยีราชมงคลอีสาน

Mr. Siriwat W. Welcome address and Lecture on Lamp and fixture selection to the instructors and students from Faculty of Engineering, Rajamangara University of technology Isan.

26 Annual Report 2009

Mr. Siriwat W. Welcome address and Lecture on Lamp and fixture selection to the instructors and students from Faculty of Engineering, Burapha University




16/2/2009

ใหการตอนรับคณะจากบคิงเพาเวอรอินเตอรเนชั้นแนลจก เยี่ยมชมบริษัทและโชวรูมอาคารภคินท

23-25/2/2009 ใหการตอนรับคณะจากบริษัทเยี่ยมชมบริษัท

Major Activities for 2009

Welcom address to management team from King Power International Co.,Ltd. at Lighting Solution Center.

และโชวรูมอาคารภคินท

Welcom address to management team from Janich Plan Co.,Ltd. at Lighting Solution Center.

13/3/2009

ณหองอาคารตลาดหลักทรัพย แหงประเทศไทย

The "Opportunity Day" business performance presentation at room 1101, the Stock Exchange of Thailand building.

24/3/2009

คุณศิริวัฒนหวังสุขผูจัดการแผนกออกแบบใหการตอนรับและ บรรยาเรื่องพื้นฐานการสองสวางใหกับคณะอาจารยและนักศึกษา ปริญญาโทจากคณะวิศวกรรมศาสตรไฟฟาสภาบันเทคโนโลยี พระจอมเกลาเจาคุณทหารลาดกระบัง

25/3/2009

ใหการตอนรับคณะจากบริษัทชไนเดอรจำกัดเยี่ยมชมโชวรูม อาคารภคินท

Welcom address to management team from Schneider Electric Co.,Ltd. at Lighting Solution Center.

29/4/2009

ประชุมผูถือหุนครั้งที่

Annual General Meeting of Shareholders 1/2009

7/5/2009

คณะผูบริหารตลาดหลักทรัพยใหเกียรติเขาชมโชวรูม 

Welcom address to management team from the Market for AlternativeInvestment (MAI) at Lighting Solution Center.

13/5/2009

คุณพงศกรอูวุฒิพงษผูจัดการผลิตภัณฑไดรับเชิญเปน วิทยากรบรรยายเรื่องใหกับ บริษัทเออรเบิ้นอินทีเรียจำกัด

20/5/2009

พิธปดอยางเปนทางการ

 

Mr. Siriwat W. Welcome address and Lecture on Lamp and fixture selection to the instructors and students from Faculty of Engineering, KMITL.

Welcome address and Lecture onLunch Time Story With LED to Urbin Interier Co.Ltd

Grand Opening Ceremony Lighting Solution Center

www.lighting.co.th

27




21/5/2009

คุณปกรณบริมาสพรรวมงานสัมมนาในหัวขอ จัดโดยสมาคมณโรงแรม

4/6/2009

ใหการตอนรับคณะจากนิตยสารสัมภาษณเรื่องเกี่ยวกับ การออกแบบแสงไฟพรอมเยี่ยมชมโชวรูมอาคารภคินท

Major Activities for 2009

Mr.Pakorn B. L&E : CEO. Sminar and speak in the panel discussion on topic Directors: TPL LAW with IOD. Welcom address to Room Magazine at Lighting Solution Center.

18/6/2009

กิจกรรมสัมมนาและสงเสริมการออมและการลงทุนแกพนักงาน บริษัทโดยมีธนาคารกสิกรไทยมาใหบริการและใหความรู ณหองประชุมใหญ

3/7/2009

คุ ณ อนั น ต  กิ ต ติ ว ิ ท ยากุ ล ให ก ารต อ นรั บ คณะจาก บริษัทฟลลิปสจำกัดพรอมเยี่ยมชมโรงงาน

Mr. Anant Kittivittayakul , MD , Welcom address to management team from PhillipsCo.,Ltd. at L&E Manufacturing Co.,Ltd.

3/7/2009

ใหการตอนรับและบรรยายใหกับคณะจากบริษัทซิตี้เพาเวอรจำกัด เรื่องพื้นฐานการสองสวางและ พรอมเยี่ยมชมโชวรูมอาคารภคินท

Welcome address and Lecture on Lamp and fixture selection,New Innovation of LED Light Source to City Power Co.Ltd. for the visit to Lighting Solution Center

23/7/2009

พิธีลงนามในบันทึกขอตกลงทางธุรกิจรวมกับบริษัท

Memorandum of Understanding Ceremony between L and H Group Pty.Ltd and L&E PLC.

31/7/2009

ใหการตอนรับและบรรยายใหกับคณะจากรุนที่ เรื่ อ งพื ้ น ฐานการส อ งสว า งและ พรอมเยี่ยมชมโชวรูมอาคารภคินท

Welcome address and Lecture on Lamp and fixture selection,New Innovation of LED Light Source and visit L&E's Showroom & Lighting Solution Center

28 Annual Report 2009

Training courses and seminars have thus been staged by KASIKORNBANK to provide the Bank’s customers can be applied effectively and in a timely manner.




Major Activities for 2009

14/8/2009

ณหองอาคารตลาดหลักทรัพย แหงประเทศไทย

The "Opportunity Day" business performance presentation at room 1101, the Stock Exchange of Thailand building.

19/8/2009

คุณศิริวัฒนหวังสุขผูจัดการแผนกออกแบบใหการตอนรับ และ บรรยายเรื่อง  ให ก ั บ คณะอาจารย แ ละนั ก ศึ ก ษาชั ้ น ป ท ี ่   จากคณะสภาปตยกรรมศาสตรและการผังเมือง มหาวิทยาลัยธรรมศาสตร

Welcome address and Lecture on "LIGHTING DESIGN FOR TNTERIOR SPACE " to students from faculty of Engineering,Thammasart University Rangsit.

22/8/2009

รวมออกบูธงานแสดงผลิตภัณฑ ไฟฟาและเครื่องกล ครั้งที่ ณโรงแรมแอมบาสซาเดอรซิตี้จอมเทียนพัทยา

Attend the 25th Thai Electrical & Mechanical Contractors Association (TEMCA) Seminar and Exhibition. At Ambassador city Jomthien Pattaya.

10/9/2009

คุณปกรณบริมาสพรและคณะผูบริหารตลาดหลักทรัพย เข า ร ว มกิ จ กรรมณธนาคารแห ง ประเทศไทย

Mr. Pakorn nd management of the companies listed on MAI visit Bank of Thailan under the program "SMART & SMILE"

10/9/2009

คุณศิริวัฒนหวังสุขผูจัดการแผนกออกแบบใหการตอนรับและ บรรยายเรื่องพื้นฐานการสงสวางพรอมเยี่ยมชมโรงงาน ให ก ั บ คณะอาจารย แ ละนั ก ศึ ก ษาจากคณะวิ ศ วกรรมศาสตร  มหาวิทยาลัยเทคโนโลยีพระจอมเกลาธนบุรีนำโดยอาจารยชาญศักดิ์

Mr. Siriwat W. Welcome address and Lecture on Lamp and fixture selection to the instructors and students from Faculty of Architecture, KMIT, Thonburi. By Prof.CharnSak.

2/10/2009

กิจกรรม

The Clean Technology Activity 1/2009 at L&E Manufacturing Co.,Ltd.

www.lighting.co.th

29




Major Activities for 2009

คุณศิริวัฒนหวังสุขผูจัดการแผนกออกแบบใหการตอนรับ และบรรยายเรื่ อ ง ให ก ั บ คณะอาจารย แ ละนั ก ศึ ก ษาชั ้ น ป ท ี ่  จาก คณะสถาปตยกรรมศาสตรชั้นปที่และมหาวิทยาลัยวลัยลักษณ นำโดยอาจารยฐิติกาแกวสมวงศ

Welcome address and Lecture on LIGHTING DESIGN FOR TNTERIOR SPACE to the instructorsand students from Faculty of Architecture, Walailuk University.

ให ก ารต อ นรั บ คณะสถาป ต ยกรรมศาสตร แ ละการออกแบบ มหาวิทยาลียเทคโนโลยีพระจอมเกลาธนบุรีเยี่ยมชมโชวรูม อาคารภคินทร

Mr. Siriwat W. Welcome address and Lecture on Lamp and fixture selection to the instructors and students from Faculty of Architecture, KMIT, Thonburi.

27/11/2009

คุณศิริวัฒนหวังสุขผูจัดการแผนกออกแบบไดรับเชิญเปน วิ ท ยากรบรรยายเรื่ อ งพื ้ น ฐานการส อ งสว า งให ก ั บ คณะคณะสถาป ต ยกรรมศาสตร แ ละการออกแบบชั ้ น ป  ท ี ่   มหาวิ ท ยาลั ย กรุ ง เทพที ่ ม หาวิ ท ยาลั ย กรุ ง เทพศู น ย ร ั ง สิ ต  นำโดยอาจารยดรจรรยาพรจุลตามระ

Mr. Siriwat W. Welcome address and Lecture on Lamp and fixture selection to the instructors and students from Faculty of Architecture, Bangkok University at Bangkok University (Rangsit Center) conference.

16/12/2009

คุณศิริวัฒนหวังสุขผูจัดการแผนกออกแบบใหการตอนรับและ บรรยาเรื่องพื้นฐานการสองสวางใหกับคณะอาจารยและนักศึกษา คณะสถาป ต ยกรรมศาสตร  สภาบั น เทคโนโลยี พ ระจอมเกล า เจาคุณทหารลาดกระบังนำโดยอาจารยนรินทรเลิศอัศววิวัฒน จำนวนคน

Welcome address and Lecture on Lamps and fixtures selection to the instructor and students from Faculty of Architecture, KMITL.

17/12/2009

ใหการตอนรับพาชมโชวรูมอาคารภคินทและเขาเยื่ยมชม ศูนยปฏิบัติการทดสอบไฟฟาแสงสวางและกระบวนการผลิตโคมไฟ ของที่แจงวัฒนะใหกับคณะจากบริษัท 

Welcome address to Vision Design Studio. for the visit to LEM Testing Center and Production Unit. at L&E Manufacturing Co.,Ltd.

17/12/2009

คุณศิริวัฒนหวังสุขผูจัดการแผนกออกแบบใหการตอนรับและ บรรยายเรื่องการออกแบบแสงไฟพรอมเยี่ยมชมโชวรูม อาคารภคิ น ท  ให ก ั บ คณะสถาป ต ยกรรมศาสตร จาก มหาวิทยาลัยศิลปากรจำนวนคน

Welcome address and Lecture on Lamps and fixtures selection to the instructor and students from Faculty of Architecture, Silapakorn University.

22/12/2009

ใหการตอนรับทีมงานวิศวกรและสถาปนิกจาก  ประเทศภูฐานเยี่ยมชมโชวรูม อาคารภคินทร

Department of Urban Development & Engineering Service, Ministry of Work and Human Settlement Puthan visit L&E's Showroom & Lighting Solution Center with warm welcome of Mangement team.

26/10/2009

17/11/2009

  

30 Annual Report 2009




Major Shareholders

  The top ten shareholders as of December 30, 2008 are ranked as follows:







Name

No. of Shares

% Holding

 

7,733,332

16.87

 

5,672,032

12.38

 

3,166,666

6.91

 

2,333,332

5.09

2,133,332

4.65

2,066,666

4.51

1,933,332

4.22

1,340,000

2.92

1,340,000

2.92

1,295,232

2.82

24,172,523

36.73

45,834,733

100.00

Mr. Yong Suptuaychone Mr. Pakorn Borimasporn Nikornkij and Sons Co.,Ltd. Mrs. Sumarn Suptuaychone

    Mrs. Napaporn Vimon-Anupong   Mrs. Kittaporn Borimasporn

  Mr. Anant Kittivittayakul

    Mr. Thawatchai Prateongsit   Mr. Yong SookSudprasert

  Mrs. Walailuk Wongthanawat

  Others



Total

                         

Dividend Policy The company has the policy to pay dividend at the rate of no less than 40% of the net profit. However, the company may pay dividend at a lower rate in case that the company need to keep the cash for business expansion

www.lighting.co.th

31


ลักษณะการประกอบธุระกิจของบริษัท

Nature of Business

                      

Lighting & Equipment Public Company Limited' s core business is in lighting. The company's business covers from product design, manufacturing, importing and distributing of lighting products to customers in both domestic and aboard. The company also provides lighting design, recommendation for proper application of various lighting products and rental of lighting products and lighting system to customers. The company offers diverse and complete range of lighting products to meet every sector's requirement such as residence, office building, commercial building, exhibition center, department store, retail shop, museum, warehouse, factory, multi-purpose complex, stadium, public garden, historical building, high way, advertising box and airport etc.

           

The company's products comprised of 4 major groups 1. Light bulbs 2. Lighting equipment (control gear / accessories) 3. Lighting luminaires 4. Lighting poles / other products The company has a big number of marketing personnels to provide fully integrated services for customers' advantage. The marketing division comprised of : 1. Project business group 2. Wholesale and retail business group 3. Export business group

                             

L&E Manufacturing Co., Ltd., the wholly-own subsidiary of the company is currently manufacturing various lighting luminaires, and lighting poles. All these products are supplied to customers through Lighting & Equipment Public Company Limited. Out of the total product offered to customers in 2009, 24% are from this subsidiary, 17% are imported from aboard and the balance 59% are outsourced from other factories in domestic. In future, the company has plan to increase the proportion of products made by its subsidiary in order to improve the gross profit margin.

32 Annual Report 2009




Revenue Structure

 Categorized by Product

2552

 Products

 Light bulbs   Lighting equipment (Control gear / accessories)   Lighting luminaires   Lighting poles / other products  

2009

   

2551

2008

2550

2007

       

216

15

255

16

189

14

272

19

344

21

288

20

884

60

953

59

852

60

93

6

59

4

83

6

1,465

100

1,611

100

1,412

100

Total

 Categorized by Market channel

 Products

   Wholesale and retail business   Export business   Project business

Total

2552

2009



 

Million Baht

2551

 Million Baht

2008

 

2550

2007



 

Million Baht

965

66

1,000

62

927

66

435

30

569

35

459

32

66

4

42

3

26

2

1,466

100

1,611

100

1412

100

www.lighting.co.th

33


                                                   ���                                     



Industrail Outlook and Competitive Environment Lighting business is directly related to the construction industry. Other factors that may have impact on the growth of this business are the renovation and expansion of department stores, discount stores, retail stores, the usage of lighting in media industry,in exhibition and other events, as well as the energy conservation policye government ,etc. In 2009, total market of lighting business in Thailand worths 10,600 million Baht and declines by the rate of approx 5%, in line with the contraction of the domestic construction industry, while the total market of ASEAN ( including Indo-china country ) is 50,000 million Baht. Thailand is currently the leader in lighting business in this region as it has a stronger competitive advantage and is probably because Thailand is the first country who is seriously promoting the lighting activities. The Illuminating Engineering Association of Thailand has initiated the promotion of lighting quality, in addition to the efficiency and economy aspects and as a result the lighting industry can fully respond to the requirement of every sector.

               

The 10,600 million Baht of Thailand lighting business is from 4 major product groups

       

1. Light Bulbs constitute 33% of total market. The light bulb market is still dominated by foreign brand such as PHILIPS, TOSHIBA, OSRAM SYLVANIA and GE. At present , there are 4 major factories that belong to Thai people. These factories manufacture standard GLS and standard fluorescent lamps. There are also a large number of standard energysaving compact fluorescent lamps flooded into this country from China.

       

2. Lighting Equipment constitute 22% of the market. The ballasts are the major product of this category and the ballast market is dominated by local manufactures, excepted for some HID ballasts and some lighting accessories that are still imported from aboard.

                      

3. Lighting Luminaires constitute 36% of the market. The lighting luminaire market is dominated by local manufacturers as Thailand has a lot of highly competitive lighting luminaire manufacturers, in particular the fluorescent luminaires. In addition,the landscape lighting luminaires from Thailand are widely accepted in world market and are being exported to various countries through out the world.

               

4. Lighting Poles constitute 9% of the market. The lighting pole market is dominated by local manufacturers. Thailand has a few big manufacturers who are producing various lighting poles that can meet the requirement of local and export customers.

34 Annual Report 2009


                                                                                 

Industrail Outlook and Competitive Environment At present the competitive environment in ASEAN is increasingly intense. Price factor is still very important as most consumers prefer lighting products with acceptable quality but at a competitive price. Cheap products from China have flooded into the region, consequently companies in the region need to adapt themselves under such circumstance. However, countries in this region who are more advance in lighting industry such as Thailand, Malaysia and Singapore have focused on diverse range of products and new services that will provide customers with better value besides the price as they believe that there are some customer groups who pay more attention on quality of product, style of product, diverse range of product and various new services including the energy efficiency. Companies in these countries have to compete in these areas in addition to the price. In Thailand then are more than hundred companies dealing in lighting business. Most of the companies have focused on products that they specialized, some of them focus on light bulb, some of them focus on lighting equipment, some of them focus on indoor lighting luminaire, some of them focus on outdoor lighting luminaire and street luminaire, some of them focus on landscape lighting luminaire, some of them focus on decorative lighting luminaire, some of them focus on lighting pole and associated luminaire etc. Lighting & Equipment Public Company Limited has positioned itself to be a total lighting solution provider by offering diverse and complete rage of lighting products as well as integrated services that can meet the requirement of every sector. In addition the company has a large number of knowledgeable and experienced engineers, architects, interior designers and computer graphic designers to provide integrated services to customers, such as recommend the usage of proper products for various lighting applications. The company can provide lighting design in the form of luminance tabulation, three dimensional image including animation.

www.lighting.co.th

35




Industrail Outlook and Competitive Environment

   

At present, the company has developed a number of product brands. Each product brand is designated to each particular product group to emphasize that each product brand is specialized in a particular product group.

                          

1. 2. 3. 4.

   

36 Annual Report 2009

LUSO LUMAX OPTEX LITEX

is specialized for fluorescent lighting luminaires. is fighting brand for all lighting luminaires. is specialized for interior lighting luminaires. is specialized for industrial and outdoor lighting luminaires. 5. LANEX is specialized for landscape lighting luminaires. 6. HOMEX is specialized for home decorative lighting luminaires. 7. LAMEX is specialized for lamps, control gear, equipment and accessories. 8. SIGNEX is specialized for advertising light box, decorative LED lighting luminaires.




Risk Factor

 1. Risk Relation to Operation

                                                

1.1 Risk From Granting Credit to Customers. At present, the company has more than 4,500 customers. For new customers, the company will sell products to them by cash. As for old customer, the company will grant them credit terms based on each customer's credit standing, financial status and payment history, and will grant them term of payment ranging 30-90 days. Therefore, the company may have risk from delay payment and possible bad debt. The granting of credit to customers is prevailing practice among companies of similar business to increase volume of business and enable the company to compete with other competitors. To reduce the risk the company has established the policy and procedure for credit control and has set up the Credit Control Department to follow up and expedite payment from customers. With regard to the accounts receivable that may have problem, the company has policy to make a general provision for bad debt of 0.50% on the sales value at the end of each month. A t t h e e n d o f e a c h q u a r t e r, the company will review each account receivable and adjust the provision for bad debt accordingly to ensure that sufficient provision for bad debt has been made. On December 31, 2009, the company had total provisions for bad debt of 44.50 million Baht. Out of this amount, 2.82 million Baht is the provision made i n 2 0 0 9 re p re s e n t i n g 0 . 1 9 % o f t h e t o t a l s a l e s . The remains are accumulated provisions made in previous year pending the tax benefit in accordance with the laws. However, the company may be able to collect part of the money from the provisions which will be reduced as Other Income.

www.lighting.co.th

37


                                                                 เ   

38 Annual Report 2009

Risk Factor

1.2 Risk from Exchange Rate Fluctuation. As the company import products both raw materials and finished products from many countries, the company has to pay the bills in foreign currencies. Therefore,there is a risk from the exchange rate fluctuation. However, the company has also some export and receive payment in foreign currencies. Normally the company keeps the foreign currencies in the Foreign Currency Deposit account at commercial banks and will use the foreign currencies to pay accounts payable to foreign suppliers. In 2009, the company paid out  million Baht for the accounts payable and received 66 million Baht in foreign currencies from its customers. Any significant accounts payable which are not covered by the foreign currencies kept in the Foreign Currency Deposit account, the company will buy the forward contract to protect risk from the exchange rate fluctuation. 1.3 Risk from Price Fluctuation of Steel Sheet and Aluminum Sheet. As approx. 24% of the products sold by the company are manufactured from its subsidiary company (L&E Manufacturing Co.,Ltd.), the price fluctuation of raw materials in the subsidiary's production will therefore affect the product cost of the subsidiary. In 2009, the steel sheet and aluminum sheet represent 32% of the total raw material cost of the subsidiary, the fluctuation of the two raw materials will therefore have direct impact on the subsidiary's production cost. Under normal circumstance, the subsidiary is able to adjust the selling price to offset the increase production cost. However, the subsidiary has established a mechanism to monitor the price of steel sheet and aluminium sheet. In case that the raw material cost has the tendency to increase, the subsidiary will make advance booking for the raw materials in an appropriate quantity to reduce the risk. As for the aluminium sheet which the subsidiary have to import from abroad, not only the company has risk from the price fluctuation resulted from the demand and supply of the materials, the subsidiary also has risk from exchange rate fluctuation. The subsidiary has reduces the risk by having alternative sources, the company can either buy the aluminium sheets from suppliers from America where the U.S. currency is used,or buy the raw materials from Europe where the Euro currency is used. Therefore the subsidiary can have the option to choose the sources that have less exchange rate fluctuation at any given time.




Risk Factor



1.4 Risk from Cheap Price Products from China.

                                               

At present, many industries are facing cheap price products from China as production cost in China are much cheaper than that in domestic. Lighting industry has no exception, all the factories in lighting industry have to adjust themselves to meet the challenges. As Lighting & Equipment has positioned itself as a Total Lighting Solution Provider, that mean we provide integrated products and services to customers, covering lighting design, new product development, manufacturing, and marketing through the well-covered network, the company is therefore very flexible in response to the rapidly changing environment. The company can adapt itself to focus on manufacturing of value added products and products that need special specifications or unique style that the Chinese manufactures can not make them constantly in large volume. For some products, in particular,products that can be made in large volume and we are unable to compete with the Chinese, we will subcontract them to the Chinese manufacture and ask them to make the products for us under our trademark and market them through our marketing network. 2. Risk Relative to Finance At present, the company D/E ratio is 1.69 and has sufficient credit lines from a few commercial banks. The covenant that the company has made with commercial banks is to maintain the D/E ratio not to exceed 3.0. Therefore, the company will still has no financial risk or having minimum risk under normal circumstances. 3. Risk Relative to Laws and Regulations The company has no legal issues that may affect the company's operation and the company does not anticipate impact that might arise from any law in the future.

                                 

www.lighting.co.th

39




Good Corporate Governance Practice

Good Corporate Governance Practice The Board of Directors strongly believes that good corporate governance is one of the important factors that help ensure the success of the company and enable the company to grow constantly and sustainably. The policy on Corporate Governance is therefore adopted sothat company's directors, management and employees can use it as the guidelines. In 2008, the company implemented the followings:

                                         

40 Annual Report 2009

1.) Corporate Governance Policy. The Corporate Governance Policy of the company has been adopted in accordance with the Good Corporate Governance outlined by the Stock Exchange of Thailand in 2006 and was approved by the Board of Directors on November 11, 2009. This Corporate Governance Policy comprised of (see details on pages 141) - General policy - Rights of Shareholders - Equitable Treatment of Shareholders - Disclosure and transparency - Internal Control and Risk management - Responsibilities of the Board 2.) Rights of Shareholders and Equitable Treatment of Shareholders. Shareholders are the owners of the company and control the company by appointing the Board of Directors to act as their representatives. Shareholders are eligible to make decisions on any significant corporate changes. Basic rights of Shareholders are: buy, sell or transfer of shares, share in profit of the company, obtain relevant and adequate information on the company in a timely manner and on a regular basis, participate and vote in the shareholders' meeting to appoint or remove members of the Board, appoint the independent auditor, make decision of dividend payment and other matters that affect the company such as increase or decrease of capital and amendment to the company's Articles of Association etc. The company uphold the principle of equitable treatment of shareholders. All shareholders will be treated equally and fairly. The company also encourage shareholders to exercise their rights. In 2009, the company implemented the followings: - Organized the 2009 Annual shareholders meeting at the conference room of Lighting & Equipment Public Company Limited, Gypsum Metropolitan Tower 16th Floor, Sri-Ayudhya Road, Thanon Payathai Sub-district, Rachthevee district, Bangkok , which is venue convenient to shareholders.


                                                  

Good Corporate Governance Practice

- Distributed the notice calling for shareholders meeting 14 days in advance and attached with agendas and other relevant documents such as minutes of last shareholders meeting, the annual report, preliminary details of the warrants allocated to existing shareholders, report of the capital increase, preliminary information of the directors who are due to retire and are nominated to directorship for another term, preliminary information of the auditor, articles of association that relevant to this meeting, proxy form and letter advising the documents needed for attending the meeting and map of the meeting venue. - In the proxy form, the company provided options to shareholders by providing names of the three audit committee members sothat shareholders may select one of them as their proxies to attend the meeting and vote in the meeting. - In the notice calling for the meeting, the company had provided agendas together with the objective and rationale as well as the opinion of the Board on each agenda. As for the agendas to approve the annual financial reports and to appoint the independent auditor, the company had icluded the opinion of the Audit Committee. - On the day of the meeting, the company open for registration 2 hours before the meeting. - Chairman, Chairman of the Audit Committee, Chief Executive Officer and other directors all together 10 persons which cover all the members of the Board attended the meeting and listen to the opinions of shareholders on various issues. - Before the meeting, in accordance with the agendas stipulated in the notice calling for the meeting, Chairman of the meeting had informed shareholders regarding the procedure of the meeting and the voting method for each agenda, which approved unanimously by the shareholders. - Chairman of the meeting had run the meeting in accordance with the agendas stipulated in the notice calling for the meeting. provided equal opportunities to shareholders to check the company's performance as well as to ask, give opinions and provide recommendations. The company had written down all the major points in the minutes of meeting sothat shareholders can investigate them accordingly. - The voting is by raising the hand. However, if there is any person who disagree or abstain in any agenda, the chairman will ask shareholders to vote by using the ballot distributed to shareholders during the registration and the Legal Advisor will be the chairperson of the vote counting committee. www.lighting.co.th

41




Good Corporate Governance Practice

- On the agenda appointing directors to replace those who retired by rotation, the company provided opportunity to shareholders to elect directors on individual basis. - No other agendas are considered in addition to those stipulated in the notice calling for the meeting.

                                                                                                                   ���   42 Annual Report 2009

- On November 25,2009, the company had sent a letter to the Stock Exchange of Thailand as well as posted the information on the company's website, informed the shareholders that the company has provided opportunity to shareholders to add agendas for the meeting or ask questions in advance before the meeting takes place in accordance with the company's procedure (see details in the company's website) The company also provided opportunity to shareholders to nominate suitable persons to be elected as the company's directors in accordance with the company's procedure (see details in the company's website) - The company had prepared the minutes of shareholders' meeting covered all the major points correctly and accurately. The company forwarded the minutes of meeting to the Stock Exchange of Thailand as well as disclosed the minutes of meeting on the company's website within 14 days after the date of the meeting. - The company had adopted the safeguard and investigation system for the use of internal information for inappropriate personal gain. All directors and management must report the changes in holding of the company's securities to the Security Exchange Commission. All directors, management and employees who involved in the internal information are prohibited to disclose such information to outside people or people whose job are not involved with the information. Also, all directors, management and employees who involved with the preparation of the financial reports are prohibited to sell or buy the company's securities one month before the information is disclosed to the public. - The company has policy to disclose correct and accurate information constantly and on time. The company had disclosed information and other company's news to shareholders, investors and other people who are interest in the above-mentioned through various channels provided by the Stock Exchange of Thailand and through the company's website www.l-and-e.com. In addition, the company has established the Investor Relations office in order to communicate with shareholders, investors and other people who are interested in the above-mentioned. The Investor Relations Office can be contracted as follows: Tel 02-248-8133 ext. 1001 E-mail chitladaj@lighting.co.th


                                                                                                                                                          

Good Corporate Governance Practice

3.) Roles and Rights of Stakeholders. Stakeholders of the company will be treated fairly in accordance with their legal rights as specified in relevant laws. The Board of Directors will not do anything in violation of stakeholders' legal rights. Stakeholders include, but are not limited to shareholders, employees, customers, suppliers, competitors, independent auditors and community in the neighborhood of the company, etc. The company has adopted the Codes of Conduct so that directors, management and employees can use it as guidelines in running the company's business. This Codes of Conduct was approved by the Board of Directors on 11th November 2009 and comprised of - Introduction - Policy and Guidelines on Conflict of Interests - Policy and Guidelines Relative to Shareholders - Policy and Guidelines Relative to Employees - Policy and Guidelines Relative to Customers - Policy and Guidelines Relative to Suppliers or Subcontractors - Policy and Guidelines Relative to Creditors - Policy and Guidelines Relative to Competitors - Policy and Guidelines Relative to Independent Auditors - Policy and Responsibilities to Social and Environment - Implementation and Enforcement ( See details of Codes of Conduct on pages 157) 2009, the company implemented the Codes of Conduct as follows: 3.1 Policy and Guidelines Relative to Shareholders. The company treated all shareholders equally and fairly as per the details mentioned in the Rights of Shareholders and Equitable Treatment of Shareholders (see page159) 3.2 Policy and Guidelines Relative to Employees. The company strongly believes that employees are the most valuable resources of the company, it therefore encourage employees to learn and develop their skills continuously. The company has provided fair and suitable remunerations to employees by comparing with other companies that have similar size and similar nature of business. Besides, the company has provided sufficient w e l f a re s t o e m p l o y e e s t h a t re f l e c t t h e c u r re n t circumstances. In 2009, the company had implemented the followings for the employees: - In addition to salaries and bonuses that the company paid to the employees which close to those paid by other companies with similar size and similar nature of business, the company has arranged to have the Provident Fund, Health Insurance, Life Assurance and Accident Insurance as well as the annual Physical Check Up for the employees.

www.lighting.co.th

43


                                                   

            

Good Corporate Governance Practice

- The company had organized various training courses both in domestic and abroad to improve knowledge and skills of the employees in order to improve the competitive potentiality. There are total employees of 500 who had received the training which are more than half of the total employees of the company. - The company had organized the Orientation Course to all new employees sothat they know the policy,culture of the company and operating practices. - The company had contributed money to support the education of 9 children of the employees who are poor but have good studying record. - The company had arranged to have basic nursing facility and had full time professional nurse works there for 8 hours a day for the employees in the factories and warehouses. 3.3. Policy and Guidelines relative to Customers. The company realizes the importance of customers to the success of the company business. It therefore provided diverse and complete ranges of lighting products sothat customers can source any kind of lighting products from the company. The company has also provided integrated services related to lighting such as recommends proper use of lighting luminaires for various applications and the proper lighting designs, etc. sothat customers can fully benefit from the company. In addition, the company has established efficient and well-covered marketing networks sothat customers can have better access to the company's products and services with the aim to improve customers' satisfaction. In addition to the above-mentioned implementation, in 2009 the company has also added the services of rental of lighting products and rental of lighting systems and has installed new machines as well as improved the manufacturing process to improve the product quality and delivery lead time. 3.4 Policy and Guidelines Relative to Suppliers. The company has dealed with suppliers fairly and equally under the basis of mutual benefit, exchanged with them the true and correct information as well as strictly observed the agreement made with them. Inaddition, the company provided supports and assistance to them in the development of new products and services. All directors, management and employees are prohibited to ask or receive any improper benefit from suppliers. 3.5 Policy and Guidelines Relative to Creditors. The company has dealed with creditors fairly and equally, provided correct, true and on time information to creditors as well as observed all conditions of the agreement made with them.

44 Annual Report 2009


                 

                                                               

Good Corporate Governance Practice

3.6 Policy and Guidelines Relative to Competitors. The company has dealed with competitors fairly by adhering to the generally accepted practices. Avoided the abusing of confidential information and the infringing of righteous rights of the competitors, as well as the dishonest way to destroy competitors. 3.7 Policy and Guidelines relative to Independent Auditors. The company realizes the importance of the Independent Auditors as the key mechanism of shareholders in auditing the Management's performance and to ensure that the financial reports are correct and accurate and has given full supports to the Independent Auditors by providing them correct and accurate information, as well as providing them convenience during their auditing process. The financial reports of the company including the 2009 annual reports have certificated by the Independent Auditor. The financial report are unqualified (clean report). 3.8 Policy and Responsibilities to Social and Environment The company strongly believes that our business will grow constantly and sustainably only when the social at large is peaceful and environment is sustainable. The company therefore realizes the need to be a good corporate citizen as well as to be responsible to the social and environment by providing appropriate contributions in various forms that are suitable and compatible with the company resources and capabilities. The company believes that the contributions to society may not necessarily spend a lot of money at each time but rather do it on a constant basis and compatible with the company's resources as well as get every employee of the company involved. The company also believes that good corporate social responsibility programs should have interaction between the givers and the receivers sothat the program can proceed smoothly and sustainably. The company has provided contributions to communities near the company and its facilities and the communities involved with the company's business. For the communities further away, the company has provide appropriate contributions to schools and temples etc. With regard to the environment, not only the company has provided contributions in various forms to conserve and restore the environment, but has also implemented measures to prevent the environmental pollution or reduce the environmental pollution by designing the products that used materials friendly to environment and recyclable materials. In 2009, the company activities related to social andenvironment as follows:

www.lighting.co.th

45




Good Corporate Governance Practice

    

- The company had organized training relative to lighting to students form various universities 13 times, including the visiting tour to the company's Lighting Application Center, Factories and Laboratory.

    

- The company had organized training relative to lighting to associations and professional institutions 11 times, including the visiting tour to the company's Lighting Application Center, Factories and Laboratory.

- The company's factories have operated activities relative to labor to create fairness to all labors, and has received the labor standard certification (TLS 8001-2005 ) comprehensive level, from the Ministry of Labor and Social Welfare since 2005. - The company's factories have adopted the Participational Safety, Health and Environment Committee to oversee the safety and welfare of the employees. The company's factory has received the drug-less factory certification from the Ministry of Labor and Social Welfare since 2002.

                       

46 Annual Report 2009

- The company's factories have built new nursing room and new canteen to provide better convenient to employees. Besides, the company has changed new roof and improved air circulation to dissipate heat, and is able to reduce factory temperature by 4 C and reduce electricity consumption by 70%. - The company's factories have installed the WET SCRUBBER System to collect all the finest powder produced by the Powder Painting Line, and not to leak to the outside environment. - The company has operated the factories in compliance with the regulations and criteria setforthed by the Industrial Environment Supervision Division, Ministry of Industry for various activities, such as industrial waste treatment, waste water treatment and noise reduction. etc. There have been no complains whatsoever from the neighborhood.


                                                                                

Good Corporate Governance Practice

4. Disclosure and Transparency. The company has policy to pay attention to the disclosure and transparency with regard to the corporate governance. In 2008, the company had disclosed information both the financial information and other information correctly, accurately, transparently and on time, in accordance with the regulations of the Stock Exchange Commission and the Stock Exchange of Thailand as follows: - Had forwarded the financial reports and other reports such as the change of directors and change in securities of the company held by each director etc. to SEC and Stock Exchange of Thailand within the given time setforth by them. Clearly disclosed the company financial information, nature of business, competitive environment and major risk in the annual report. - Had disclosed the financial status and other information such as nature of business, competitive environment, business risk, the number of security of the company held by each director and management, the connected transactions and the implementation of the Corporate Governance policy. etc. in the annual report and in the Form 56-1. - Had disclosed the financial information and other information correctly and accurately in the company's website www.l-and-e.com,  - Had met with the investors, security analysts and media on the Opportunity Day organized by the Stock Exchange of Thailand 4 times to explain the company's performance as well as answer questions raised in the meeting. - The company has established the Investor Relations office sothat shareholders and other persons can contact at Ms. Chitlada Jariyavidyanont Tel. : 02-2488133 ext. 1001 or Fax. : 02-2488144 or E-mail : chitladaj@lighting.co.th - The Board of Directors had selected the Independent Auditors who are independent and have no conflict of interest with the company and the auditors have been approved by S.E.C. The company has appointed the auditors from KPMG Phoomchai Audit Co.,Ltd. as the company's auditor for the year 2009 (who were the company's existing auditor) as recommended by the Audit committee as follows: Mr. Veerachai Ratanajaratkul , License No. 4323 or Mr. Vichien Thamtrakul , License No. 3183 or Mr. Santi Pongjareanpit , License No. 4623 The audit fee for year 2009 is 1,565,000 Baht which is the rate close to the fee paid by other companies with similar size and similar nature of business. The company audited financial reports have been certified by the Independent Auditor and the financial reports are unqualified (clean reports)

www.lighting.co.th

47


                                                                                                             

48 Annual Report 2009

Good Corporate Governance Practice

- The company has adopted the safeguard and investigation system for the use of internal information for inappropriate personal gain. All directors and management must report the changes in holding of the company's securities to the S.E.C. All directors, management and the employees involved in the internal information are prohibited to disclose such information to outside people or people whose job are not involved with the information. Also, all directors, management and employees involved in the preparation of the financial reports are prohibited to sell or but the company's securities one month before the information is disclosed to the public. 5. Internal Control and Risk management The company has paid attention to the internal control and risk management system, and has adopted an Operating Manual sothat employees can use it as guideline. In additional, the company has set up the Internal Audit Department, reported directly to the Audit Committee and the Chief Executive Officer as a mechanism to reinforce the internal control system and the internal audit system as well as to follow up and ensure that there is improvement and correction of the flaws found from the audit to improve the efficiency and reduced risk from the operation. In 2008 the company has implemented the followings: - Had reviewed the Charter of Internal Audit Department and updated them accordingly. - Had reviewed the Operating Manual and updated them accordingly. - Had updated and improved the Inventory System and Rental System. - Had updated and improved the Accounting and Inventory software program sothat the internal control can be made more effectively. - Had updated and improved the Material Requirement Planning software program sothat the production planning can be made more effectively. - It is the company's policy that the connected transactions or the transactions that many cause conflict of interest must be appropriately considered by the people who have no interest in the transactions and must be reviewed by the Audit Committee. - The company has policy on risk management for various matters which have been stipulated in the Operating Manual such as the account receivables management, the inventory management, currency exposure management, the insurance of properties etc. In 2008, the company has made appropriate insurance on the company's inventories and other major properties, the company has also implemented the group accident insurance, group life assurance and medical insurance for the employees.


                                                                                                                                           

Good Corporate Governance Practice

6. Responsibilities of the Board The Board of Directors is responsible to shareholders in carrying out the company's business in compliance with the laws and regulations of the Stock Exchange Commission and the Stock Exchange of Thailand, the objectives and articles of association of the company as well as the resolutions of shareholders' meeting. The Board of Directors shall perform duties in good faith, with due diligence and care, and for the best interest of the company and shareholders. In 2009 the Board of Directors has performed its duties as follows : 6.1 Leadership and Vision The Board of Directors has participated in the adoption of the company's vision, mission, strategic direction and annual operating budget including to oversee and control the management to operate the company in accordance with the policy and business plan to increase wealth of the company and grow the business constantly and sustainably. In addition the Board of Directors has established the Audit Committee to oversee the financial reports, internal control system, risk management system, the selection of independent auditor and to oversee that the company has operated business in compliance with relevant laws and regulations, The Board of Directors has also established the Corporate Governance and Nomination Committee in November 2008 to oversee the corporate governance activities as well as codes of conduct of the company. 6.2 Board Structure and Qualification - The Board of Directors comprised of 11 members, 4 executive directors, 4 independent directors and 3 non-executive directors. - The Board has 4 independent directors which is more than 1/3 of total directors. Out of the 4 independent director, 3 are Audit Committee members and Corporate Governance and Nomination Committee members. - The chairman and the Chief Executive Officer are not the same person. - The Company Secretary also act as the Secretary of the Board. - The vacating directors may be eligible for re-election. There is no limit for number of terms of being the company director which is subject to the approval of shareholders. - The executive directors must not be the directors in other public companies more than 5 companies. The holding of directorship in other companies mentioned above must be informed to the Board and approved by the Board. - Executive Director is an executive who is appointed as a member of the Board, Non- executive Director is a director who has no position in the company's management team, and the Independent Director is a

www.lighting.co.th

49


                                                                                                        

Good Corporate Governance Practice

director who has no position in the company's management team and must meet the qualification outlined by the Stock Exchange Commission and the Stock Exchange of Thailand (see details of the definition and qualification of director in the Corporate Governance Policy and the Independent Director pages157) 6.3 Board of Directors' Meeting and Directors' Remuneration - The Board of Directors has had regular meeting every quarter and may have additional meeting when it is necessary. In every meeting, the Board had clearly fixed the agenda and had sent the notice calling for the meeting more than 7 days in advance sothat the Board of Directors shall have sufficient time to study the information. Minutes of meeting had been written correctly and accurately, and the minutes of meeting that certified by the Board had been kept properly sothat the Board of Directors and other involved persons can investigate them accordingly. In 2008,the Board of Directors had 4meetings and each meeting took approximately 3 hours, and the attendance of the Board of Directors are as follows: Name Total Attendance (times) 1.Mr. Yong Suptuaychone 4 4 (Chairman) 2. Mr. Pakorn Borimasporn 4 4 (Chairman of Executive Committee) 3. Mr. Anant Kittivittayakul 4 4 (Executive Director) 4. Mrs. Napaporn Vimon-Anupong 4 4 (member of CG and Nomination Committee / Executive Director) 5. Mr. Gritsada Suptuaychone 4 4 (Executive Director) 6. Mr. Utis Chanchenchop 4 4 (Chairman of the Audit Committee) 7. Mr. Boonlert Khawcharoenporn 4 4 (Chairman of CG and Nomination Committee Audit / Committee Member) 8. Mrs. Renu Buakerd 4 4 (Audit Committee Member / member of CG and Nomination Committee) 9. Mr. Sitthichai Kraisitthisirin 4 4 (Independent Director) 10. Mrs. Kalayarat Suriyasat 4 3 (Director) 11. Mr. Supphachai watthangura 4 4 (Independent Director) The authorized directors who can act on behalf of the Board of Directors are the signature of two out of the four directors number 2 to number 5 and fix the c o m p a n y s e a l . D e t a i l s o f t h e ro l e s , d u t i e s a n d responsibilities can be seen from the Report Form 56-1 and from the company's website www.l-and-e.com

50 Annual Report 2009




Good Corporate Governance Practice

- The Board of Directors had fixed the meeting date in advance since the beginning of the year sothat all directors and management can schedule their time efficiently. - Chairman of the Board and Chief Executive Officer had considered the agendas together. - Chairman of the Board had provided equal opportunity to each director to express his opinions, and the director who has interest in any agenda must leave the meeting room during the consideration of the agenda.

                                                                                                                          

- In 2009 the No-executive Directors had one meeting among themselves. - The company had paid out the remuneration to directors in 2009 in the form of gratuity and meeting allowance as follows: Chairman of the Board 250,000 Baht Member of Audit Committee Member/ (3 persons, each) 225,000 Baht Member of CG and Nomination Committee Other Director( 3 person, each) 150,000 Baht Executive Director (4 persons, each) 150,000 Baht Total money paid out to the Board 1,975,000 Baht - The company paid out remunerations to management 8 persons total 20,460,803 Baht 6.4 Board Self Assessment and Development of Board and Management - The Board of Directors will regularly conduct Board self assessment every year in order to assess its performance and problem of the Board sothat it can improve the performance and correct the problem accordingly. The Corporate Governance and Nomination Committee which was established on November 14, 2007 are preparing the Board Self Assessment Form by adopting from the Board Self Assessment Form adopted by the Stock Exchange of Thailand in 2009 The Board expected that the Board Self Assessment Form will be completed and can be used in the year 2010

www.lighting.co.th

51


                                                                                                                                                             

Good Corporate Governance Practice

- The Board of Directors has policy to encourage directors and management to constantly develop knowledge and skill. In 2009 Directors and management had regularly participated in various training programs and seminars, such as member of the Audit Committee had attended the training and seminar on tax issues organized by the Stock Exchange of Thailand, Chief Financial Office attended the training program on Accounting Standards and Practices organized by the Accounting Council. Company Secretary attended the training program on Corporate Secretary Development Program organized by Thai Listed Company Association, and the Investor Relation Manager attended various training programs organized by the Investor Relation Association and the Stock Exchange of Thailand. The Chief Executive Officer had attended the training program on capital market (CMA 3) organized by the Capital Market Academy, and was the speaker for many institutions, such as speaker for Thai Institute of Director. 6.5 Sub-Committees The Board of Directors has appointed the Executive Committee, Audit Committee and Corporate Governance and Nomination Committee to assist the Board in managing the company by clearly stipulating the duties and responsibilities of each sub-committee. At present, the company has not established the Remuneration Committee. However, the company has adopted due consideration for the remuneration of directors and top management by comparing to the remuneration paid by other companies of similar size and similar nature of business. Executive Committees The Executive Committee comprised of Mr. Pakorn Borimasporn

Chairman of Executive Committee Mr.Anant Kittivittayakul Managing Director Mrs. Napaporn Vimon-Anupong Executive Director Mr.Gritsada Suptuaychone Executive Directors. The Executive Committee has regular meeting to consider and manage the company to grow constantly in accordance with the policy and strategic direction set forthed by the Board. The Executive Committee had performed its duties and responsibilities as per the following details:

52 Annual Report 2009


Good Good Corporate Corporate Governance GovernancePractice Practice                                                                                                            

1. Approve payment or become guarantor for the payment for the company's normal business transactions within the limit of not more than 200 million Baht. 2. Appoint or remove officer of the company whose rank not higher than the Managing Director. 3. Prepare and establish the policy and strategic direction of the company for the approval of Board of Directors. 4. Establish the Organization Chart and the Management Structure of the company covering the selection, training, employment and termination of employee of the company. 5. Establish business plan and management authorities, approve the annual business budget and manage the company business in accordance with the business plan and business strategy, and in compliance with the policy and strategic direction approved by Board of Directors. 6. Perform other duties assigned by Board of Directors. In case that any Executive Director or its related parties have any interest in any transaction or matter directly affect the company, the Executive Director must not participate in the decision making process on such issues. Audit Committee The Audit Committee comprised of Mr. Utis Chanchenchop as Chairman of the Audit Committee, Mr. Boonlert Khawcharoenporn and Mrs. Renu Buakerd as Committee Member The Audit Committee had 4 meetings in 2009 each meeting took approximately 2 hours. The attendance of the Audit Committee's as follows : 1. Mr. Utis Chanchenchop (Chairman of the Audit Committee) 2. Mr. Boonlert Khawcharoenporn (Committee Member) 3. Mrs. Renu Buakerd (Committee Member)

4

4

4

4

4

4

The Audit Committee had performed its duties as assigned by the Board as per the following details (see details in the Charter of the Audit Committee in the company's website www.l-and-com) 1. Review the financial reports (quarterly financial report and annual audited financial report) to oversee that the reports are sufficient and correct before forwarding them to the Board of Directors for consideration. 2. Review the internal control system to oversee that t h e i n t e r n a l a u d i t p ro c e d u re s a re a d e q u a t e , appropriate and efficient. 3. Review the risk assessment and risk management s y s t e m t o o v e r s e e t h a t t h e y a re a p p ro p r i a t e , adequate and efficient. www.lighting.co.th

53




                                                                                                                                                                                                        54 Annual Report 2009

Good Corporate Governance Practice

4. Review the business operating procedures to oversee that they are in compliance with rules and regulations of the Security Exchange Commission and those of the Stock Exchange of Thailand as well as other laws relative to the company business. 5. Recommend to the Board the independent auditors to be nominated for shareholder approval to audit the financial reports of the company. Review with the independent auditors the objectivity of audit, responsibility and auditing procedures of the independent auditors including problems found during the audit as well as issues that the independent auditors feel they may have material impact on the company financial reports. 6. Review the disclosure of connected transactions or transactions that may have conflict of interest to oversee that they are accurate, correct and timely. 7. Issue a Audit Committee Report to be included in the company's annual report and the report must be signed by the Audit Committee Chairperson. 8. Other matters that assigned by the Board. Corporate Governance and Nomination Committee The Corporate Governance and Nomination Committee comprised of Mr. Boonlert Khawcharoenporn as chairman of the committee, Mrs. Renu Buakerd and Mrs.Napaporn Vimon-Anupong as the committee members. The Corporate Governance has adopted the Charter of Corporate Governance and Nomination Committee ( see details of the charter in the company's website www.l-and-e.com ) which covered the followings: 1. Consider and review the policy and practice of Corporate Governance and Codes of Conduct of the company and update them accordingly. 2. Monitor and assess the compliance of the company to the policy of Corporate Governance and Codes of Conduct constantly and at least once a year. 3. Recommend the method to assess Directors' performance to Board of Directors, as well as assess and monitor the performance in accordance with the resolutions of Board of Directors. 4. Nominate persons suitable for company's directors to Board of Directors and for approval by shareholders' meeting. 5. Nominate person suitable for company's Chief Executive Officer to Board of Directors for approval.


รายงานคณะกรรมการตอรายงานทางการเงิน

Report from Board of Directors Relative to Financial Report

                                                                                          

         

The Board of Directors is responsible for the company's financial reports and the details therein. The financial reports are prepared in accordance with the generally accepted accounting standards in Thailand, by adopting the appropriate accounting policy and consistent implementation as well as due judgement and best estimation in the financial reports preparation,including the sufficient note and explanation of the financial reports. In addition, The Board of Directors has overseen that the company's inter nal control system and risk management system are appropriate and efficient to ensure that the financial reports are correct, accurate and sufficient to safeguard the company's assets as well as to protect frauds. The Board of Directors has appointed the Audit Committee to oversee and review the company's accounting policy and the accuracy of the financial reports, including the review of the company's internal control system and internal audit system, the details of which can be seen from the Audit Committee's Report included in t h e a n n u a l re p o r t . I n a d d i t i o n t h e c o m p a n y ' s financial reports were audited by the independent auditor,KPMG Poomchai Audit Co., Ltd. The report of the independent auditor is included in the annual report. The Board of Directors has the opinion that the c o m p a n y ' s i n t e r n a l c o n t ro l s y s t e m i n g e n e r a l is satisfactory and can be assured that thefinancial reports of Lighting & Equipment Public Company Limited and its subsidiary for the year ended December 31, 2009 are accurate and fairly presented, as well as in compliance with relevant laws and regulations.

                

www.lighting.co.th

55


รายงานคณะกรรมการตรวจสอบ

Report from Board Audit Committee



Audit Committee's Report for 2009

     และมีนางสาวจิดาภาอังกุลดีผูจัดการฝายตรวจสอบ ภายในเปนเลขานุการของคณะกรรมการตรวจสอบคณะกรรมการ ตรวจสอบไดปฏิบัติงานตามหนาที่และความรับผิดชอบตามที่ ไดรับ มอบหมายจากคณะกรรมการบริษัทฯ ซึ่งสอดคลองกับแนวปฏิบัติ ที่ดีสำหรับกรรมการตรวจสอบข องตลาดหลักทรัพยแหงประเทศไทย

The Audit Committee of Lighting & Equipment Public Company Limited consisted of 3 independent directors: Mr. Utis Chanchenchop is committee chairman, Mrs.Renu Buakird and Mr. Boonlert Khawchareonporn are committee members. And Miss Jidapa Angkuldee, Internal Audit Manager, as the committee secretary. The committee carried out the duty as assigned by the Board, in compliance with the best practice for audit committee recommended by the Stock Exchange of Thailand.

ในปคณะกรรมการตรวจสอบไดมีการประชุมรวมกันครั้ง โดยผูรวมประชุมประกอบดวยคณะกรรมการตรวจสอบผูอำนวยการ อาวุโสฝายบัญชีและการเงินและผูจัดการฝายตรวจสอบภายใน ทำการสอบทานงบการเงินและระบบควบคุมภายในของบริษัทฯโดยใน การประชุมครั้งที่เมื่อเดือนกุมภาพันธมีผูสอบบัญชีและ เลขานุการบริษัทเขารวมประชุมดวยเพื่อรวมพิจารณารายละเอียด ของงบการเงินปรวมถึงรายการที่เกี่ยวโยงกันและการปฏิบัติ  พยและตลาดหลักทรัพยรวมถึง ใหเปนไปตามกฎหมายวาดวยหลักทรั กฎหมายและขอกำหนดอื่นๆที่เกี่ยวของคณะกรรมการตรวจสอบ มีความเห็นรวมกันวา งบการเงินสอบทานประจำไตรมาสและงบการเงินตรวจสอบประจำป มีความถูกตองเหมาะสมมีการเปดเผยขอมูลที่เพียงพอ เปนที่เชื่อถือไดและครบถวนตามมาตรฐานการบัญชีที่รับรองโดยทั่วไป รวมทั้งยังมีการสอบทานการเปดเผยรายการที่เกี่ยวโยงกันระหวาง บริษัทฯกับบริษัทยอยเพื่อใหมั่นใจวาบริษัทฯไดดำเนินการตาม เงื่อนไขทางธุรกิจปกติและหลักเกณฑที่ทางตลาดหลักทรัพยกำหนด อยางถูกตองครบถวนและคณะกรรมการไมพบรายการใดที่อาจมี ผลกระทบอันเปนสาระสำคัญตองบการเงินดังกลาว ระบบตรวจสอบภายในและระบบบริหารความเสี่ยงของบริษัท มีความเหมาะสมเพียงพอสอดคลองกับการพัฒนาระบบงานของ บริษัทฯทำใหมีการควบคุมภายในที่ดีและมีประสิทธิภาพ การปฏิบัติตามกฎหมายวาดวยหลักทรัพยและตลาดหลักทรัพย รวมทั้งกฎหมายที่เกี่ยวของกับธุรกิจบริษัทฯพบวาบริษัทฯ ไดปฏิบัติภายในกรอบขอกำหนดอยางถูกตองไมพบขอบกพรองใด คณะกรรมการตรวจสอบไดพิจารณาคัดเลือกผูสอบบัญชีและ มีความเห็นวานายวีระชัยรัตนจรัสกุลผูสอบบัญชีของบริษัทฯ ในปเปนบุคคลที่มีความอิสระมีความรูและประสบการณ เหมาะสมในการสอบบัญชีของบริษัทฯจึงเสนอใหแตงตั้ง นายวีระชัยรัตนจรัสกุลผูสอบบัญชีรับอนุญาตเลขทะเบียน หรือนายเจริญผูสัมฤทธิ์เลิศผูสอบบัญชีอนุญาตเลขที่ หรือนายเอกสิทธิ์ชูธรรมสถิตยผูสอบบัญชีอนุญาตเลขที่ แหงบริษัทเคพีเอ็มจีภูมิไชยสอบบัญชีจำกัดเปนผูสอบบัญชี ของบริษัทฯประจำป

    56 Annual Report 2009

During the year 2009 the committee held 4 meetings with Senior Accounting &Financial Director together with Internal Audit Manager to review the financial report as well as internal control system. On the 4th meeting made in February 2010, the Independent Auditor as well as the Company Secretary were requested to join the meeting to discuss the financial report and the related-party transactions. Oversight of the reports were to ensure the company is carried out in compliance with the laws and regulations of the Securities and Exchanges together with related laws and regulations. The committee opinions are summarized as below. - The reviewed quarterly financial report and audited 2009 financial reports were correct, appropriate with sufficient disclosures and complied to general accepted accounting standards. There were reviews of the disclosures of related-party transactions between the companies and subsidiaries to ensure that the company had carried out in compliance with normal business practice as well as the criteria specified by the Stock Exchange of Thailand. No transactions that might materially affect the financial reports were found. - The internal control system and risk management system were appropriate and sufficient corresponding to the company working procedures and leading to good and efficient internal control. - The company had complied with policies, rules, regulations and relevant laws. For the appointment of the company independent auditor for 2010, the committee proposed the following persons from KPMG Poomchai Audit Co.,Ltd. due to their independency, knowledgible and experience in the auditing activities. the Audit Committee propose the following persons from KPMG Poomchai Audit Co.,Ltd. : Mr. Veerachai Ratanajaratkul Certified Public Accountant Registration No. 4323 or Mr. Santi Pongjareanpit License No. 4623 or Mr. Ekasit Choothammasatit License No. 4195 to be the company’s Independent Auditor for the year 2010.




Explanation and Analysis from Management

Balance Sheets Assets 

Description



2552 / 2009

2551 / 2008

 454

40

463

38

306

27

375

31

249

22

251

21

130

11

125

10

1,139

100

1,214

100

Accounts receivable

 Inventories

 Land, buildings, machines and equipment

 Others

 Total

          ห 

Accounts Receivable have total value of 454 million Baht, representing 40% of total assets. The accounts receivable in 2009 decreased by 2% from a year earlier, despite the revenue from sales had declined by 9% due to longer accounts receivable day caused primarily by the strict control of credit granted by financial institutions during the financial crisis. However, the provision for bad debt in 2009 was recorded at 2.8 million Baht, or 0.2% of total revenue from sales, as opposed to 9.1 million Baht recorded for a year earlier and is a result of the highly efficient information system that the company has developed to manage the accounts receivable.

www.lighting.co.th

57




Explanation and Analysis from Management

Liabilities and Shareholders' Equity  

2552/ 2009

2551 / 2008





454

31

450

37

279

25

263

22

60

5

50

4

446

39

451

37

1,139

100

1,214

100

Short-term borrowings from financial institutions

 Other current liabilities

 Non-current liabilities

 Shareholders' equity

 Total

                                                                                                                                                                                          

58 Annual Report 2009

Short-term Borrowings from Financial Institutions are recorded at 354 million Baht, representing 31% of total assets. The short-term borrowings in 2009 declined by 21%from a year earlier due essentially to the reduced working capital because of decreased accounts receivable and decreased inventories. Other Current Liabilities have total value of 279 million Baht, representing 25% of total assets.The other current liabilities comprised of 198 million Baht accounts payable, 29 million Baht long - term borrowings fromfinancial institutions payable within on year, 9 million Baht accrued sales commission, 6 million Baht dvance payment from customers, 7 million Baht accrued design fee and advisory fee,17 million Baht other accrued expenses and 13 million Baht for others. Non-current Liabilities have total value of 60 million Baht, representing 5% of total assets. The non-current liabilities declined by 20% from a year earlier is principally a result that in early 2009, the company had converted a portion of the short-term borrowings from banks to long-term borrowings from banks. Shareholders' Equity is recorded at 446 million Baht, representing 39% of total assets. The total shareholders equity in 2009 declined by 1% from a year earlier because in 2009, the company had paid out dividend (for the operation in 2008) 19.2 million Baht while the net income from 2009 was 14.2 million Baht.




งบกำไร

Explanation and Analysis from Management

Income Statements

รายได ในป 2552 บริษัทมีรายไดรวม 1,476 ลานบาท ลดลงจากปกอนหนา 9% รายไดกวารอยละ 99 เปนรายไดจากการขายและการใหบริการ รายไดที่ลดลงสวนใหญเปนผลจากวิกฤติเศรษฐกิจที่ขยายตัวไป ทั่วโลกสงผลใหการกอสรางโดยทั่วไปชะลอตัวซึ่งสงผลกระทบ โดยตรงกับรายไดของบริษัทที่มาจากอุตสาหกรรมกอสรางเปนหลัก นอกจานี้นโยบายเขมงวดในการควบคุมสินเชื่อของยริษัทเพื่อลด ความเสี่ยงตอหนี้สูญก็มีผลทำใหรายไดจากการขายของบริษัทลดลง รายไดจากการขายและการใหบริการของบริษัทสามารถจำแนกตาม ชองทางการขายไดดังนี้ สวนงานขายโครงการ สวนงานขายสงและขายปลีก สวนงานสงออก

66% 30% 4%

ตนทุนขายและตนทุนการใหบริการ ตนทุนขายและตนทุนการใหบริการรวมเปนเงิน 1,096 ลานบาท ลดลงจากปกอนหนา 8% สาเหตุใหญมาจากปริมาณการขายที่ ปรับตัวลดลง ค า ใช จ  า ยในการขายและบริ ห าร และค า ตอบแทนผู  บ ริ ห าร คาใชจายในการขายและบริหารและคาตอบแทนผูบริหารรวมเปนเงิน 339 ลานบาท แมวาในป 2552 บริษัทจะมีคาใชจายในการบริหาร เพิ่มขึ้นจากการจัดตั้งโชวรูม Lighting Solution Center เปนเงิน 12 ลานบาท คาใชจายรวมจากการขาย การบริหาร และคาตอบแทน ผูบริหาร กลับลดลง 3% จากปกอนหนา ทั้งนี้เพราะบริษัทไดเริ่ม นำระบบสารสนเทศมาใชสื่อสารแทนระบบเดิมที่ ใชกระดาษ รวมถึง การลดคาใชจายอื่นๆที่ ไมมีผลกระทบกับบุคลากร ตนทุนทางการเงิน ในป 2552 บริ ษ ั ท มี ต  น ทุ น ทางการเงิ น รวม 21.2 ล า นบาท ลดลงจากปกอนหนา 13% เปนผลมาจากปริมาณการขายที่ลดลง สงผลใหการใชเงินทุนหมุนเวียนลดลง นอกจากนี้อัตราดอกเบี้ย การกูยืมเงินจาสถาบันการเงินไดลดลงดวย กำไรสุทธิ กำไรสุทธิในป 2552 รวมเปนเงิน 14.2 ลานบาท ลดลงจากปกอน หนา 70% เปนผลมาจากรายไดที่ลดลงในขณะที่คาใชจายรวมลดลง ในอัตราที่นอยกวา

Revenue Revenue In 2009 is recorded at 1,476 million Baht, declined 9% from a year earlier. More than 99% of the revenue are from revenue from sales and rendering of services. The revenue reduction due primarily to the global economic crisis resulted in slow down construction which has direct impact to the company whose major income is from construction industry. The strict control of credit granted to customers in order to avoid possible bad debt also contributed to the sales reduction. The revenue from sales and rendering of services can be categorized as follows: Project sale activities Wholesale and retail activities Export sale activities

66% 30% 4%

Cost of Sale of Goods and Rendering of Services Cost of sales and rendering of services are recorded at 1,096 million Baht, decreased 8% from a year earlier due principally to the reduced sales. Selling Expenses, Administrative Expenses and Management’s Remuneration Selling expenses, administrative expenses and management’s remuneration are recorded at 339 million Baht. Despite in 2009 the company had spent 12 million Baht on establishment of the Lighting Solution Center which is part of the administrative expenses, total expenses had decreased by 3% from a year earlier due to the company has applied information system in communication to replace the old system using paper, including the reduction of other expenses not affecting personnel. Cost of Fund Total cost of fund in 2009 is 21.2 million Baht, decreased 13% from a year earlier is a result of the decline sales resulted in lower working capital requirement, as well as lower interest rate. Net Income Net income in 2009 is recorded at 14.2 million Baht, decreased 70% from a year earlier is a result of the reduced sales while total expenses decreased at a slower rate.

www.lighting.co.th

59




Explanation and Analysis from Management

งบกระแสเงินสด

Cash Flows Statement

กระแสเงินสดจากกิจกรรมดำเนินงาน ในป 2552 บริษัทไดเงินสดสุทธิจากกิจกรรมดำเนินงาน 157 ลานบาท เพิ่มขึ้นจากปกอนหนาถึง 148 ลานบาท สาเหตุใหญเปนผลจากบริษัท ใชเงินทุนหมุนเวียนลดลงเพราะลูกหนี้การคาปรับตัวดีขึ้นและสินคา คงเหลือไดปรับตัวลดลง

Cash Flows from Operating Activities In 2009, the company received cash flows from operating activities at the amount of 157 million Baht, up by 148 million Baht from a year earlier due essentially to lower working capital requirement because of the improved accounts receivable and the decreased inventories.

กระแสเงินสดจากกิจกรรมลงทุน

Cash Flows from Investing Activities

ในป 2552 บริษัทใชเงินสดสุทธิใชไปในกิจกรรมลงทุน 28 ลานบาท เทียบกับปกอนหนาที่ ใช ไป 22 ลานบาท ในจำนวนเงินลงทุน 28 ลานบาท เปนเงินลงทุนในการจัดสรรโชวรูม Lighting Solution Center จำนวน 16 ลานบาท ที่เหลือ 12 ลานบาท เปนการลงทุน ในระบบสารสนเทศ และการปรับปรุงโรงงานผลิต กระแสเงินสดจากกิจกรรมจัดหาเงิน ผลจากบริษัทไดเงินสดสุทธิจากกิจกรรมดำเนินงาน 157 ลานบาท และใชเงินสดไปในกิจกรรมการลงทุนเปนเงิน 28 ลานบาท สงผลให บริษัทมีเงินสดสุทธิไปจายคืนเงินกูยืม รวมทั้งจายเงินปนผล ใหผูถือหุน และจายดอกเบี้ยใหสถาบันการเงิน รวมเปนเงินสดสุทธิ ที่ ใชไปในกิจกรรมจัดหาเงิน 116 ลานบาท

60 Annual Report 2009

In 2009, the company spent 28 million Baht on investing activities as opposed to 22 million Baht spent in a year earlier. Out of the 28 million Baht spent, 16 million Baht was spent on the establishment of the Lighting Solution Center, the balance of 12 million Baht invested in the information system and improvement of manufacturing facilities. Cash Flows from Financing Activities As a result of the 157 million Baht cash flows generated from the operating activities and the 28 million Baht spent on investing activities, the company used the net cash flows from the two activities to repay the borrowings from banks and pay dividend to shareholders as well as for interest payment. Total cash flows spent on financing activities was recorded at 116 million Baht.




CORPORATE GORVERNANCE POLICY




นโยบายการกำกับดูแลกิจการ

Corporate Governance Policy



CONTENT



142

 

142

 

144

General Policy

Rights of Shareholders

Equitable Treatment of Shareholders

 



146

Role of Stakeholders



  

Disclosure and Transparency

147



148

 

149

Internal Control and Risk Management

Responsibilities of the Board

www.lighting.co.th

141


นโยบายการกำกับดูแลกิจการ

Corporate Governance Policy

1. General Policy

               

                     

142 Annual Report 2009

The Board of Directors strongly believes that Corporate Governance is one of the important factors that help ensure the success of the company's business and will enable the company to grow constantly and sustainably. This policy on Corporate Governance has been adopted sothat the company's directors,management and employees can use them as guidelinesin running the company's business. This policy on Corporate Governance has been updated and was approved by the Board of Directors on 6 th November 2009. This policy has been adopted in accordance with the Principle of Good Corporate Governance outlined by the Stock Exchange of Thailand in 2006. The Board of Directors will constantly review and improve the Corporate Governance Policy sothat the policy will be updated and suitable to the changing environment.

2. Rights of Shareholders Shareholders are the owners of the company and control the company by appointing the Board of Directors to act as their representatives. Shareholders are eligible to make decisions on any significant corporate changes. 2.1 Basic Rights of Shareholders Basic Rights of Shareholders are 2.1.1 Buy, sell or transfer of shares. 2.1.2 Share in profit of the company. 2.1.3 Obtain relevant and adequate information on the company in a timely manner and on a regular basis. 2.1.4 Participate and vote in the shareholders meetings on the following matters -Offer names, appoint or remove members of the Board. -Appoint the independent auditor. -Make decision on dividend payment. -Amendment to the company's Articles of Association and Memorandum of Associations. -Increase or decrease of capital. -Approval of extraordinary transactions. -Other matters that affect the company as outlined by laws.


นโยบายการกำกับดูแลกิจการ

Corporate Governance Policy



2.2

      

2.2.1 Information and documents to be attached with the written notice calling for the shareholders' meeting : - Information relevant to the meeting. - The documents needed to show the officer for attending the meeting. - The opinions of the Board of Directors including explanation for each agenda. - The proxy form and how the proxy should be filled. The company should offer at least one name of the independent directors whom the shareholders can appoint them as their proxy.

                      ���    

Shareholders' Meeting

2.2.2 As for the agenda for consideration (i.e. dividends payment, capital increase/decrease, etc.), following details must be informed: - Important information relevant to the matter to be considered. - Reasons, necessity, positive and negative impact. 2.2.3 As for the agenda to appoint directors, the following information must be informed: - Information of the nominee (i.e. name, position, age, education, profession, experience and directorship in other companies, etc.) - Holding of position in other companies that materially related. - Past performance during being the company's director (in case of reappointment to the board) i.e. number of attendance at the board's meeting etc. 2.2.4 As for the agenda to consider director's compensation, the following details must be informed: -Remuneration and other benefit received as the director. 2.2.5 As for the nomination of the company's auditor, the following details must be informed: - Name and company of the auditor. - Compensation for the auditor together with relevant information. - Reasons to change the auditor (in case of new appointment) 2.2.6 Forward the written notice calling for the shareholders' meeting at least 7 days in advance. 2.2.7 On the day of shareholders' meeting, at least 2 hours is allowed for the registration before the meeting. 2.2.8 Date, time and venue of the meeting must be convenient to shareholders. 2.2.9 During the shareholders' meeting, appropriate time and equal opportunity must be allowed to shareholders to express opinions and raise questions. www.lighting.co.th

143


นโยบายการกำกับดูแลกิจการ                            

        

Corporate Governance Policy

2.2.10 Procedure of the voting in the Shareholders' meeting. - Voting should be done in order and in accordance with the agenda. - Appropriate time and equal opportunity is allowed to shareholders to deliberate on each agenda before the voting. - Inform the voting and counting process to shareholders before the voting. - Provide convenience to every shareholder in the voting. - In case of appointing or removing the director, voting must be donefor each person. 2.2.11 All the directors must attend the shareholders' meeting to listen to the opinions of shareholders and answer questions from shareholders. 2.2.12 The minutes of meeting must have the following details. - Details of the meeting must be complete, i.e. name of directors who attended the meeting, details of answer to the question, opinions and other relevant information. - Disclose the minutes of meeting in the company website within 14 days after the meeting. - Forward the minutes of meeting to Stock Exchange of Thailand within 14 days after the meeting. 2.3 Communications with Shareholders and Management of Share Registration. 2.3.1 The company shall establish the Investor Relation Unit to communicate and coordinate with the shareholders, investors and the involved authorities. 2.3.2 The company shall establish the company's website sothat the shareholders, investors, customers, analysts and other persons who interested in the company can access to the company's information more rapidly. 2.3.3 The company has appointed Thailand Securities Depository Co.,Ltd. as its registrar sothat the management of the company's shares will meet acceptable standard and is reliable.

3. Equitable Treatment of Shareholders All shareholders, including those with management positions and the non-executive shareholders, no matter they are major shareholders or minority shareholders as well as the foreign shareholders will be treated equally and fairly. The company shall communicate with shareholders and disclose the company's information through the company's website as well as through other appropriate media sothat every shareholder will receive the information equally.

144 Annual Report 2009


นโยบายการกำกับดูแลกิจการ

Corporate Governance Policy



3.1 Shareholders' Meeting

   

3.1.1 Provide option to shareholders who are unable to attend the shareholders' meeting to appoint other persons as their proxy to attend and vote in the shareholders' meeting.

                                                                 

3.1.2 Establish procedure for minority shareholders to nominate candidates for director position. 3.1.3 Establish procedure for minority shareholders to propose any issue to be included in the agenda of the shareholders meeting or send questions in advance of the meeting. The proposed agenda must not fall into the following categories. - Matters that beyond the authority of the company - Matters that against the laws, announcements, rules and regulations of gover nmental authority or regulating authority or not in accordance with the company's objectives or Articles of Association or the resolutions of the Shareholders' meetings. - Matters that may cause significant problems to shareholders at large. - Matters that the company has already corrected. - Matters that are for the benefit of an individual or a particular group of persons. - Matters about the normal business operation of the company and the shareholders who proposed the agenda are unable to show that the matters are abnormal. - Matters that the Board of Directors considers that they are no need to be included in the agenda, and the Board must have valid reasons and are able to explain to the shareholders. 3.1.4 Provide option to shareholders to appoint company's directors on individual nominees. 3.1.5 The Board of Directors will not add any agenda items without notifying all shareholders in advance, especially the important issues that shareholders require time to study relevant information before making their decisions.

www.lighting.co.th

145


นโยบายการกำกับดูแลกิจการ

Corporate Governance Policy

  

3.2 Prevention on Use of Inside Information for Abusive Self-dealing

  

3.2.1 All directors and management of the company must submit report on the change of ownership of the company's shares to the Stock Exchange Commission as required by laws.

   

3.2.2 All directors, management and employees involved in the inside information must not disclose such information to outside people or to people not involved in the information.

  

                         

146 Annual Report 2009

3.2.3 All directors, management and employees involved in the preparation of financial reports are not allowed to buy or sell the company's shares one month before the official announcement of the reports.

4. Role of Stakeholders Stakeholders of the company will be treated fairly in accordance with their legal rights as specified in relevant laws. The Board of Directors will set up a mechanism to promote cooperation between the company and its stakeholders to create wealth, financial stability and sustainability of the firm. The Board of Directors will not do anything in violation of stakeholders' legal rights. Stakeholders in corporate governance include, but are not limited to shareholders, employees, customers, suppliers, creditors, competitors, the community in the neighborhood of the company, society and independent auditors, etc. 4.1 Codes of Conduct The Codes of Conduct of the company has been adopted sothat all directors, management and employees can use it as their guidelines in running the company's business. The Codes of Conduct of the company comprised of the followings: - Introduction - Policy and Guidelines on Conflict of Interests - Policy and Guidelines Relative to Shareholders - Policy and Guidelines Relative to Employees - Policy and Guidelines Relative to Customers - Policy and Guidelines Relative to Suppliers or Sub-contractors - Policy and Guidelines Relative to Creditors - Policy and Guidelines Relative to Competitors - Policy and Guidelines Relative to Independent Auditors - Policy and Responsibilities to Social and Environment - Implementation and Enforcement (see details of the company's Codes of Conduct in the company's website)


นโยบายการกำกับดูแลกิจการ         



                            

Corporate Governance Policy

4.2 Communication Channel for the Concerns from Stakeholders to the Board In case that stakeholders found any violation of laws, the incorrectness of the financial reports, the insufficiency of the internal control system or the violation of the codes of conduct, they can communicate the concerns to the chairman of the Audit Committee or any member of the Audit Committee for investigation. If the investigation is valid, the Audit Committee must report the matters to the Board of Directors for action.

5. Disclosure and Transparency The Board of Directors shall ensure that all important information relevant to the company, both financial and non-financial, is disclosed correctly, accurately, on a timely basis and transparently in accordance with the guidelines of the Stock Exchange Commission and the Stock Exchange of Thailand. 5.1 Information Disclosure The company shall disclose information, including but not limited to the followings - Vision and mission statement of the company. - The company's financial status and operating performance. - Explanation and analysis from management on the company's financial statements. - Risk factors and risk management policy. - Shareholding structure. - Name of the company's directors and their biography including number of shares held by the directors. - Remuneration of the company's directors and the meeting attendance of each director. - Policy on corporate governance and the implementation of the policy. - Report from the Board of Directors on its responsibilities for the financial reports together with the report from independent auditor. - Roles and responsibilities of the Board of Directors and the Sub-committees. - Codes of Conduct of the company. - Connected transactions or transactions that may cause conflict of interest.

www.lighting.co.th

147


นโยบายการกำกับดูแลกิจการ

Corporate Governance Policy



5.2 Information Disclosure Channel.

           

The company shall disclose information through various appropriate channels sothat shareholders, investors and other interested persons can have access to the information rapidly, conveniently and equally. - The company's annual report that are sent to shareholders, related institutions and other institutions who interested in the report. - The annual disclosure form (form 56-1) - The company's website. - Other communication channels provided by the Stock Exchange of Thailand. - The company will also organize meeting with analysts and investors on various occasions.

             ���               

6. Internal Control and Risk Management. The company realizes the importance of the internal control system and risk management system, the company has therefore set up the Internal Audit Department, report to the Audit Committee and the Chief Executive Officer, as a mechanism to reinforce the Internal control and internal audit system as well as to monitor the correction of the problems or flaws found during the audit in order to increase efficiency and reduce risk on the operation of business. 6.1 To adopt a Charter of the Internal Audit Department sothat all employees will have the comprehension of purposes, roles, responsibilities and authorities of the Internal Audit Department. 6.2 To adopt the internal control system covering the followings matters: - The Internal control at management level, such as theauthority of management to approve on various matters, etc. - The Internal control relative to the operation within the company. - The Internal control relative to the safeguard of the company's properties. - The Internal control relative to the financial system of the company. - Risk management on the company business operation. 6.3 Connected transactions or transactions that may cause conflict of interest must be properly and carefully reviewed by those who are not involved in the transactions and they must also be reviewed by the Audit Committee.

148 Annual Report 2009


นโยบายการกำกับดูแลกิจการ                                                                                           

Corporate Governance Policy

7. Responsibilities of the Board The Board of Directors is responsible to shareholders in carrying out the company's business in accompliance withthe laws and regulations of the Stock Exchange Commission and the Stock Exchange of Thailand, the objectives and articles of association of the company as well as the resolutions of shareholders' meeting. The Board of Directors shall perform its duties in good faith, with due diligence and care, and for the best interest of the company and all shareholders. 7.1 The Board of Directors 7.1.1 Structure of the Board. - The Board of Directors shall consist of chairman of theboard and other directors, altogether not less than 5 members. At least half of the board members must have residence in Thailand. - The Board of Directors must consist of at least 3 independent directors or at least 1/3 of the directors are independent directors - At least half of the directors in the Board must be non-executive directors. - Chairman of the Board and Chief Executive Officer must not be the same person. - Chief Executive Officer must be a member of the Board. - The Company Secretary is also the secretary of the Board of Directors and serve the Board of Directors in the areas of providing legal advice and other regulations thatthe Board of Directors must know. - The vacating director may be eligible for re-election. There is no limit for number a terms of being the company director which is subject to the approval of shareholders. - The executive directors must not be the directors in other public companies more than 5 companies. The holding of directorship in other companies mentioned above must be informed to the Board of Directors and approved by the Board - No director is allowed to be the partner or director of other companies which have similar business and operate the business in competition with the company excepted that the matters were informed to the shareholders' meeting before the person was appointed to the company's director. - Every director should understand comprehensively the duties and responsibilities of the company director and the nature of business of the company as well as shall express their opinions independently. The director should also dedicate time and effort in carrying out the duties to reinforce the position of the Board of Directors.

www.lighting.co.th

149


นโยบายการกำกับดูแลกิจการ                                                                                           

150 Annual Report 2009

Corporate Governance Policy

7.1.2 Roles, Duties and Responsibilities of the Board. - The Board of Directors has duties to carry out the company's business in compliance with the laws and regulations of Stock Exchange Commission and the Stock Exchange of Thailand, the objectives and articles of association of the company as well as the resolutions of shareholders' meeting. - The Board of Directors has duties to consider and approve major matters relevant to the company's business, such as vision, mission statements, financial objectives, business risk, business plan and annual operating budget, cluding the oversight and control to ensure that the management has operated the business in accordance with the approved policy and business plan. - The Board of Directors shall adopt the control system for the operation, the financial reports, the compliance to the laws, regulations and policies. The Board of Directors shall set up the Audit Committee and the Corporate Governance and Nomination Committee to oversee the control systems and review them constantly. - The Board of Directors shall establish the Corporate Governance Policy sothat all directors, management and employees can use them as guidelines in operating the business, and follow up constantly to ensure that the policy has been complied. - The Board of Directors shall establish the Codes of Conduct sothat all directors, management and employees can use them as guidelines in operating the business, and follow up to ensure that the Codes of Conduct has been complied. - The Board of Directors shall carefully review the connected transactions, or transactions that may cause conflict of interest. The connected parties are not allowed in the decision making process and the transactions shallbe disclosed properly, correctly and accurately. - The Board of Directors shall constantly review the risk management policy and update it accordingly


นโยบายการกำกับดูแลกิจการ

Corporate Governance Policy



7.1.3 Definition of Independent Director

        

Independent Director is a director who has no position in the company's management team or any of its subsidiaries, is independent from management and major shareholders, and has no business dealings with the company, which may compromise with the company's and/or the shareholder's interests and must meet the minimum qualification outlined by the Securities and Exchange Commission or the Stock Exchange of Thailand.

                                                                                                   

The Qualifications of independent director : 1. Hold company shares of not more than 1%, including shares held by a related person, of the issued shares of company or affiliated, associated, or related company. 2. Must not be the management, employee, staff or advisors who receive regular compensation from the company or an affiliated, associated, or related company unless they have not been involved in such positions for at least two years prior to the date of appointment. 3. Must be free of any direct or indirect, financial or other interests in the management and business of the company or its subsidiaries, associated or related companies, or major shareholders in a way that might interfere with their independent decision making, unless they have not been involved in such position for at least two years prior to the date of appointment. 4. Must not be related to any executive director, executive officer, controlling person, or major shareholder no matter by blood or registration under laws such as parents, spouse, sibling, and child, including the spouse of the child, executive director, executive officer, controlling person, or major shareholder of the company or its subsidiary. 5. Must not act as a nominee or representative of a n y d i re c t o r, m a j o r s h a re h o l d e r o r g ro u p o f shareholders, or are a relative of any major shareholder or group of shareholders. 6. Must carry out their duties and exercise their judgment without being influenced by executive directors or major shareholders, including the related persons or relatives. 7. Must not be or used to be an auditor of the company or affiliated, associated, or related company, unless they have not been involved in such positions for at least two years prior to the date of appointment. 8. Must not be or used to be persons who provided any professional advice and services, such as legal advisor or financial consultant, who receives service fees more than Baht 2 million per annum from the company or affiliated, associated, or related company, unless they have not been involved in such positions for at least two years prior to the date of appointment. www.lighting.co.th

151


นโยบายการกำกับดูแลกิจการ                                                                                                                   

152 Annual Report 2009

Corporate Governance Policy

7.1.4 Board of Directors' Meeting. Chairman of the Board of Directors shall determine the agendas of the board meetings, oversee that all Board members receive relevant documents in advance to providethem sufficient time to consider the documents, as well as allocate appropriate time and encourage Board members to express their opinions, including summarize the opinions or decisions from the meetings. - The Board of Directors shall have regular meeting at least once a quarter by fixing the meeting date in advance sothat all directors and management can schedule their time efficiently. - Chairman of the board and chief executive officer shall consider the agendas of the meeting together to ensure that all vital issues are included in the agendas. - Every director has the freedom to propose issues to be included in the agendas. - Written notice calling for meeting together with relevant documents must be sent to directors at least 7 days in advance. - Every director must attend the meeting (unless engaged in other important business) - Chairman of the meeting shall provide equal opportunity and encourage every director to express opinions. - The director who is connected materially with the issuebeing considered must leave the meeting during the consideration. - Resolutions of the Board of Directors' meeting shall be made by majority votes. In case that there is any director disagrees with the resolutions, the disagreement must be recorded in writing in the minutes of meeting. - The minutes of meeting must be correct, accurate and complete at an appropriate time, and must be kept properly. - The non-executive directors must have a meeting among themselves at least once a year. - The Company Secretary shall be secretary of the Board of Directors, and shall help the Board organizes the meeting agendas, prepare notice calling for the meeting, oversee the meeting, prepare minutes of the meeting, keep documents related with the meeting and provide counseloard on legal matters and other related regulations.


นโยบายการกำกับดูแลกิจการ                                                                                                                                                                  

Corporate Governance Policy

7.1.5 Director Selection and Remuneration - The Corporate Governance and Nomination Committee is responsible for the selection of qualified candidates for the company's directors and nominate them for approval in the shareholders' meeting. - The company shall establish the procedure to allow minority shareholders to nominate suitable persons as candidates for the company's directors. - The Board of Directors is responsible for the consideration of remunerations for the company's directors and the Chief Executive Officer by comparing the remunerations paid by other companies with similar nature of business and similar size. The remunerations should commensurate with the duties and responsibilities and should be in the level that can sufficiently attract and maintain qualified directors and management to stay with the company. The remunerations of directors must be approved by the shareholders in the shareholders' meeting, and the remuneration of the Chief Executive Officer will be determined and approved by the meeting of all the Non-executive Directors. 7.1.6 Board Self Assessment The Board of Directors should regularly conduct the board self assessment in order to consider the performance and problem of the Board and improve them accordingly by using the board self assessment form prepared by the Stock Exchange of Thailand. 7.1.7 Development and Training of Board and Management - The Board of Director shall encourage and facilitate training for company's directors and management regarding roles, duties and responsibilities of company's directors, principle of good corporate governance, codes of conduct, risk management, roles and responsibilities of company's secretary, roles and responsibilities of investor relation and other subjects that are useful to the company. The company shall send directors and management for training in the appropriate programs organized by the Thai Institute of Directors and other institutions. - Whenever there are new directors or high ranking management, the company shall organize introduction program for the directors or management to enable them to understand the nature of business of the company and the operating practices of the company as well as providing them with all documents and information useful to perform their duties. - The Board of Directors shall encourage and follow up to ensure that the company has established development programs and succession plans sothat the company's business will proceed continuously and efficiently.

www.lighting.co.th

153


นโยบายการกำกับดูแลกิจการ

Corporate Governance Policy



7.2 Sub - Committees.

                                              

7.2.1 Executive Board The Executive Board consist of Chief Executive Officer as the chairman and all the Executive Directors as the members of the Executive Board. The Executive Board shall perform its duties as assigned by the Board of Directors as follows - Approve payment or become guarantor for the payment for the company's normal business transactions within the limit of not more than 200 million Baht. - Appoint or remove officer of the company whose rank not higher than the Managing Director. - Prepare and establish the policy and strategic direction of the company for the approval of Board of Directors. - Establish the Organization Chart and the Management Structure of the company covering the selection, training, employment and termination of employees of the company. - Establish business plan and management authorities, approve the annual operating budget and manage the company business in accordance with the business plan and business strategy, and in compliance with the policy and strategic direction approved by Board of Directors. - Perform other duties assigned by Board of Directors.

              ���                                                      

154 Annual Report 2009

In case that any Executive Director or its related parties have any interest in any transaction or matter directly affect the company, the Executive Director must not participate in the decision making process on such issues. 7.2.2 Audit Committee The Audit Committee is appointed by the Board of Directors. The Audit Committee shall consist of at least 3 Independent Directors who shall meet the independent and financial literacy requirements for serving on Audit Committee. At leaser one members of the committee shall have accounting or related financial management expertise as set forth in the applicable rules of the Stock Exchange of Thailand. The Audit Committee shall prepare a Charter of the Audit Committee to be approved by the Board of Directors for use as the operating guidelines and should cover the followings - Review the financial reports (quarterly financial report and annual audited financial report) to oversee that the reports are sufficient and correct before forwarding them to the Board of Directors for consideration. - Review and oversee that the internal control system and the internal audit system are adequate, appropriate and efficient.


นโยบายการกำกับดูแลกิจการ                                                                                                                              

Corporate Governance Policy

- Review the risk assessment and risk management system to oversee that they are appropriate, adequate and efficient. - Review the business operating procedures to oversee that they are in compliance with rules and regulations of the Security Exchange Commission and those of the Stock Exchange of Thailand as well as other laws relative to the company business. - Recommend to the Board the independent auditors to be nominated for shareholders approval, to audit the financial reports of the company. Review with the independent auditors the objectivity of audit, responsibility and auditing procedures of the independent auditors including problems found during the audit as well as issues that the independent auditors feel they may have material impact on the company financial reports. - Review the disclosure of connected transactions or transactions that may have conflict of interest to oversee that they are accurate, correct and timely. - Issue an Audit Committee Report to be included in the company's annual report and the report must be signed by the Audit Committee Chairman. - Other matters that assigned by the Board. 7.2.3 Corporate Governance and Nomination Committee The Corporate Governance and Nomination Committee is appointed by the Board of Directors and shall consist of at least 3 members who shall have independent judgment. The Chairman of the committee must be an Independent Director. The Corporate Governance and Nomination Committee shall adopt a Charter for the Corporate Governance and Nomination Committee to be approved by the Board of Directors for use as the operating guidelines and should cover the followings - Consider and review the policy and practice of Corporate Governance and Codes of Conduct of the company and update them accordingly. - Monitor and assess the compliance of the company to the policy of Corporate Governance and Codes of Conduct constantly and at least once a year. - Recommend the method to assess Directors' performance to Board of Directors, as well as assess and monitor the performance in accordance with the resolutions of Board of Directors. - Nominate persons suitable for company's directors to Board of Directors and for approval by shareholders' meeting. - Nominate person suitable for company's Chief Executive Officer to Board of Directors for approval.

www.lighting.co.th

155


นโยบายการกำกับดูแลกิจการ                                                 

156 Annual Report 2009

Corporate Governance Policy

7.2.4 Chief Executive Officer The Chief Executive Officer is appointed by the Board of Directors and is the highest management of the company. The Chief Executive Officer shall manage the company to fulfill his duties in accordance with the business plan as assigned by the Board of Directors. - Lead the management committee and control the management to grow the company and its wealth in accordance with the company's policy and strategic direction. - Perform or manage the company business in accordance with the business plan and annual operating budget. - Act on behalf of the company in managing the company business in accordance with the objectives, Articles of Association and policy of the company, as well as the resolutions of the shareholders' meeting, resolutions of the Board of Directors and resolutions of the Executive Board The authorities of the Chief Executive Officer and the authorities delegated to other persons by the Chief Executive Officer shall not cover the authorization to approve the connected transactions or transactions that may have conflict of interest as outlined by the Stock Exchange of Thailand. The approval of such transactions must be done by the Board of Directors and/or the shareholders' meeting resolution.


CODES OF CODUCT

คูมือจรรยาบรรณธุรกิจ


คูมือจรรยาบรรณธุรกิจ

Code of Conduct



CONTENT 

158

  

159



159



160



161

Introduction

Policy and Guidelines on Conflict of Interests

Policy and Guidelines Relative to Shareholders

Policy and Guidelines Relative to Employees

Policy and Guidelines Relative to Customers

  Policy and Guidelines Relative to Creditors

162



163



163



164



165

Policy and Guidelines Relative to Competitors

Policy and Guidelines Relative to Independent Auditors

Policy and Responsibilities to Social and Environment

Implementation and Enforcement

www.lighting.co.th

157


คูมือจรรยาบรรณธุรกิจ

Code of Conduct



Introduction

      

Lighting & Equipment Public Company Limited considers that it is utmost important for all directors and employees to understand and act in accordance with company's Codes of Conduct which has been updated and approved by the Board Of Directors on 14th November 2007. The Board Of Directors shall constantly review and update the Codes of Conduct sothat it will compatible with future changing business environment.

              

158 Annual Report 2009

Since its inceptioned in 1993, the company has determined to do business by upholding integrity and transparency as it believes that doing business by upholding integrity and transparency as well as doing business in accordance with good and general accepted Codes of Conduct will help the company grow business constantly and sustainably. Lighting & Equipment Public Company Limited is committed to do business in accordance with the laws and within the framework of the company's Codes of conduct. The company supports free trade principle and recognizes the important of environment conservation. This Codes of Conduct explains broadly the policies and procedures relative to persons connected with the company, as for the detailed procedures, all directors and employees must use their good judgment and consciousness for the benefit of the company and public at large.


คูมือจรรยาบรรณธุรกิจ

Code of Conduct



Policy and Guidelines on Conflict of Interests

                 

It is the policy of the company that all directors and employees to perform the duties transparently, shall not seek improper personal gain and perform the duties in accordance with the laws as well as relevant regulations.

                                                       



                                      

1. Avoid connected transactions. In case that the transactions are necessary and they are for the benefit of the company, the transactions should be done as if they are done with outside persons, the director and employee involved in the transactions must not participate in the decision making process. 2. The connected transactions must be reviewed or considered by the Audit Committee. In case that any Audit Committee member involved in the transactions, that committee member must not participate in the decision making process. 3. Prohibition for use of information obtained whilst being the director or employee of the company for personal gain. i.e operate business related to the company or operate business in competition with the company etc. 4. Prohibition for use of inside information or provide the information to outside persons for buying or selling of the company's securities.

Policy and Guidelines Relative to Shareholders It is the policy of the company to operate business with transparency, uphold integrity and in compliance with the laws as well as within the framework of the company's Corporate Governance Policy. The company is committed to grow the business constantly and sustainably to build wealth and good return on investment to the shareholders. The company adheres to the equitable treatment of shareholders. 1. The company shall organize the shareholders' meeting at the venue, date and time that are convenient to shareholders. 2. The company shall send the notice calling for shareholders' meeting included with relevant documents to shareholders at least 7 days in advance sothat shareholders shall have sufficient time to study the information. Besides, the company shall post the information on the company's website before sending out the notice for the meeting. 3. The chairman of the meeting shall allocate appropriate time for discussion and encourage shareholders to express their opinions and ask questions related to the company's business.

www.lighting.co.th

159


คูมือจรรยาบรรณธุรกิจ

                                                                                                                            ���           



                 

Code of Conduct

4. The company shall prepare the minutes of shareholders' meeting that cover all the important issues and shall post the minutes of the meeting in the company's website within 14 days. 5. All directors should attend the shareholders' meeting to listen to shareholders' opinions and answer questions from shareholders. 6. The Board of Directors shall facilitate shareholders topropose, in advance of the meeting date, any issues for consideration in shareholders' meeting. 7. The Board of Directors shall not add any agenda items without notifying all shareholders in advance, especially the important issues that shareholders require time to study the information. 8. The Board of Directors shall facilitate shareholders for the nomination of director candidates. The shareholders who would like to propose the nomination should provide names and qualification of the candidates together with their consent and send them to the Board of Directors at least 3 months before the shareholders' meeting. 9. The Board of Directors should enclose the proxy form to shareholders together with the notice calling for shareholders' meeting sothat shareholders who are unable to attend the meeting can appoint a proxy to attend the meeting. The Board of Directors should provide an option to shareholders whereby they may appoint an independent director as their proxy. 10.Directors election should utilize the process in which shareholders are able to vote on individual nominees. 11.Prohibition for all directors and employees for use of inside information or provide the information to other persons for buying of selling of the company's securities.

Policy and Guidelines Relative to Employees The company strongly believes that employees are the most valuable resources of the company, it therefore encourage employees to learn and develop their skills continuously. The company shall provide fair and suitable remunerations as well as sufficient welfares to employees that reflect the current circumstances. 1. Treat employees politely, observe the individual and human rights of the employees. 2. Oversee that the working environment are safe to the employees and their properties. 3. Establish Operating Manual sothat employees can use them for guidelines.

160 Annual Report 2009


คูมือจรรยาบรรณธุรกิจ                                                                                        

                                                                                     

Code of Conduct

4. Strictly observe relevant laws and regulations. 5. Organize seminars regularly to provide education and develop working skill for employees. 6. Encourage employees to further their study in the areas that related to their works. 7. Provide fair and suitable remunerations as well as sufficient welfares to employees that reflect the current circumstances. 8. Appoint and transfer as well as reward and punish employees with fairness. 9. Encourage employees to express opinions and provide recommendations that are beneficial to the company. 10.Encourage employees to play sports and exercise regularly including provide appropriate sport equipment toemployees. 11.Encourage employees to work as a team and provide sufficient conference rooms for the working team.

Policy and Guidelines Relative to Customers The company realizes the important of customers to the success of the company business. It therefore provides diverse and complete range of lighting products so that customers can source any kind of lighting products from the company. The company has also provided integrated services related to lighting sothat customers can fully benefit from the company. In addition, the company has established efficient and well-covered marketing network sothat customers can have better access to the company's products and services. The aim of the company is to improve continuously and constantly the satisfaction of customers. 1. Provide good quality products or products that meet standards as offered to customers. 2. Deliver products to customers on time. In case that the company has problems and is unable to deliver the products as promised, it should inform the problem to customers in advance and immediately, to find way to solve the problem together. 3. Sell the products to customers with fair prices and avoid overcharging customers. 4. Provide integrated services to customers including to help solved customers' problems promptly with full willingness. 5. Provide correct, sufficient and on time information about products and services sothat customers can make the right decision. 6. Provide correct recommendations for the use of products and services.

www.lighting.co.th

161


คูมือจรรยาบรรณธุรกิจ                                                                                                    

              

Code of Conduct

7. Offer reasonable warranty time for the company's products and services. 8. Establish mechanism that customers can send their complaints regarding the quality of products and services of the company. 9. Keep confidential information of customers and avoid abusing it. 10.Respect customers and communicate with them politely.

Policy and Guidelines Relative to Suppliers and Sub-contractors It is the policy of the company to deal with suppliers and Sub-contractors fairly and equally under the basis of mutual benefit, exchange with them the true and correct information as well as strictly observe the agreement made with them. 1. Strictly observe conditions of the agreement made with supplies and sub-contractors. In case that there might be a problem on some conditions of the agreement, the company should inform the suppliers and sub-contractors in advance and immediately, to find way to solve the problem together. 2. Provide true and correct information. 3. Provide supports and encourage suppliers and subcontractors to manufacture quality products that meet standards. 4. Provide supports and encourage suppliers and subcontractors to develop new products and new services in respose to the changing requirement of customers. 5. Prohibition for all directors and employees to ask or to receive any improper benefit from suppliers or sub-contractors. 6. Prohibition for all directors and employees to offer or to pay any improper benefit to suppliers or sub-contractors. 7. Keep confidential information of suppliers and subcontractors, and avoid abusing it. Policy and Guidelines Relative to Creditors It is the policy of the company to deal with creditors fairly and equally, provide correct, true and on time information as well as observe all conditions of the agreement made with creditors. 1. Strictly observe all conditions of the agreement made with creditors. In case that there might be a problem on some conditions of the agreement, the company should inform the creditors in advance and immediately, to find way to solve the problem together. 2. Provide the true and correct financial status.

162 Annual Report 2009


คูมือจรรยาบรรณธุรกิจ                                              

Code of Conduct

Policy and Guidelines Relative to Competitors It is the policy of the company to treat competitors fairly by adhering to the generally accepted practices. Avoid abusing confidential information and infringing righteous rights of the competitors. 1. Observe the generally accepted practices with regard to competition. 2. Avoid abusing confidential information and infringing righteous rights of the competitors. 3. Avoid dishonest way to destroy competitors. Policy and Guidelines relative to Independent Auditors The company realizes the important of the Independent Auditors as the key mechanism of shareholders in auditing the Management's performance and to ensure that the financial reports are correct and accurate, and will therefore give full support to the Independent Auditors by providing correct and accurate information, as well as providing them convenience during their auditing process. 1. Record the accounting and financial information properly, in order, accurately and correctly sothat the Independent Auditors can audit them easily and conveniently. 2. Provide true, correct and accurate information. 3. Provide convenience to the Independent Auditors during their auditing process.

www.lighting.co.th

163


คูมือจรรยาบรรณธุรกิจ                                                                                    

Code of Conduct

Policy and Responsibilities to Social and Environment The company strongly believes that our business will grow constantly and sustainably only when the social at large is peaceful and environment is sustainable. The company therefore realizes the need to be a good corporate citizen as well as to be responsible to the social and environment by providing appropriate contributions in various forms that are suitable and compatible with the company resources and capabilities. The company believes that the contributions to society may not necessarily spend a big amount of money at each time but rather do it on a constant basis and compatible with the company's resources as well as get every employee of the company involved. The company also believes that good corporate social responsibility program should have interaction between the givers and the receivers so that the program can proceed smoothly and sustainably. The company will provide contributions to communities near the company and its facilities and the communities involved with the company's business, then gradually expand the contributions to other communities further away. As for the environment, not only the company will provide contributions in various forms to onserve and restore the environment, but will also find measures to prevent the environmental pollution or reduce the environmental pollution by designing the products that used materials friendly to environment or used recyclable materials. 1. Be a good corporate citizen, strictly observes the laws. 2. Provide education and give presentation on light and lighting to students and other people who are interested in this subject. 3. Exchange knowledge and experience on light and lighting including the management of business with educational institutions or other institutions.

164 Annual Report 2009


คูมือจรรยาบรรณธุรกิจ                                                        

   ���                      

Code of Conduct

4. Provide appropriate supports to the activities that are beneficial to communities and social. 5. Provide appropriate assistance or contribution of money or other things to the underprivileged and victims of natural disasters. 6. Develop and improve the manufacturing process continuously to prevent environmental pollution or to reduce the environmental pollution to minimum and meet criteria set forth by related authorities. 7. Design products by using materials that will not create environmental pollution or using recyclable materials. 8. Support and encourage the conservation of energy and environment. 9. Support and encourage programs to use energy efficiently. 10.Support and encourage the conservation of culture and good tradition of communities. 11.The company uphold the democratic system with theking being the head of the country. The company encourage all directors and employees to exercise their voting rights in accordance with the constitution. However, the company has no policy to contribute money to politicians or political parties.

Implementation and Enforcement The company specifies that it is the duty and responsibility of all directors and employees to know, understand and act strictly in accordance with the policy and guidelines set forth in the codes of conduct of the company. Management at all levels have to oversee and responsible for their subordinates to ensure that their ubordinates know, understand and strictly act in accordance with the codes of conduct. Severe punishment will be imposed on the directors and employees who act against the codes of conduct. However, the company assigns the Company Secretary to oversee the implementation and enforcement of the codes of conduct in general sothat shareholders, employees, customers, suppliers and subcontractors, creditors and other persons can send their or action.

www.lighting.co.th

165


LIGHTING & EQUIPMENT PUBLIC COMPANY LIMITED 539/2, 16,17/F, Gypsum Metropolitan Tower, Sri-Ayudhya Rd., Rajthevee, Bangkok 10400 Tel : (66) 0-2248-8133, (66) 0-2642-5092 Fax : (66) 0-2248-8144, (66) 0-2642-5091 www.l-and-e.com , www.lighting.co.th


L&e 09