TMA Annual Report 2020

www.tma.co.th

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Annual Report

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INTRO

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ANNUAL REPORT 2020

CONTENT

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Content 01

CHAIRMAN’S MESSEGE

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SURVIVING THE CRISIS

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INTRODUCTION : COPING WITH THE NEW NORMAL

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THE OFFICE : WORKING FROM HOME, AGILITY, NEW BREED OF STAFF

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TURNING ON-LINE

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- Free Service For Members NEW ACTIVITIES TO SERVE FUTURE ENTERPRISES

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- The Angel Investor Readiness Training Program - SPACE-F Project Management THE NEW APPROACH

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- Virtual Classroom - Virtual Conferences - Thailand Competitiveness Enhancement Program (TCEP) - Sustainability Forum - TechInno Forum - Digital Transformation Forum & Thailand Digital Excellence Awards 2020 - Food Innopolis International Symposium 2020 - Thailand Corporate Excellence Award & SMEs Excellence Awards

MANAGEMENT GROUPS ACTIVITIES

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THAILAND MANAGEMENT DAY : The Making of Future Enterprises

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MEMBERSHIP SERVICE

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OTHERS

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THE FUTURE PLAN : 2021 AT A GLANCE

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FINANCIAL STATEMENT

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CHAIRMAN’S MESSAGE

CHAIRMAN'S MESSAGE In the past year, we have experienced all kinds of New Normal behaviors, and have started things in a new way, pivoting to all sorts of circumstances to survive Life will never be the same again for all of us.

The year 2020 was an extraordinary year for humankind as the world together braved COVID-19 pandemic. It is the event that will go down in history when every single nation on the planet endures the same unfortunate fate. With global connectivity, we have enjoyed so much convenience and never realized that this too would pose greatest risk to the entire world. We were able to bounce back rather quickly though with technological advancement. In the past year, we have experienced all kinds of New Normal behaviors, and have started things in a new way, pivoting to all sorts of circumstances to survive. Life will never be the same again for all of us.

We at TMA are no exception. It was even more difficult when our main activities involved convening, getting people together for knowledge sharing, learning and networking. We had to pivot to survive, just like the rest of the world. We worked round the clock, even though remotely

due to social distancing measure, to migrate to online platform in order to continue our services to the members.

The pandemic has proven to be a blessing in disguise as we managed to turn around at an unbelievably fast speed, at the same time found out how fascinating younger generation rapidly adapted to the situation and became the real warrior of the digital era. Technological advancement definitely contributes largely in this transformation.

In the face of adversity, it was comforting that we also found true sense of camaraderie. The Board and staff pull together all their efforts to keep TMA alive and going. On behalf of TMA, I would like to express my most sincere appreciation towards all stakeholders who have offered their best support to the Association in the past year. With all invaluable advises, comments and suggestions, TMA is now ready to emerge even stronger in the coming year.

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CHAIRMAN’S MESSAGE

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Mr. Teeranun Srihong Chairman Thailand Management Association

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BOARD OF TRUSTEE

BOARD OF TRUSTEE

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BOARD OF TRUSTEE

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Honorary Trustees

Mr. Anand Panyarachun Former Prime Minister

Mr. Paron Israsena Na Ayudhaya Chairman of the Board Thaicom Public Company Limited

Chairman Dr. Ajva Taulananda Vice Chairman True Corporation Public Company Limited

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Mr. Amaret Sila-On Former Minister of Commerce, Honorary Advisor, S&P Syndicate Public Company Limited

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MEMBERS OF THE BOARD

MEMBERS OF THE BOARD

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MEMBERS OF THE BOARD

Mr. Chote Sophonpanich

Mr. Isara Vongkusolkit

Mr. Kan Trakulhoon

Chairman of Executive Board Green Spot Company Limited

Honorary Chairman Mitr Phol Group

Chairman of the Board Advanced Info Service Public Company Limited

Mrs. Kannikar Chalitaporn

Mr. Pramon Sutivong

Mr. Prasert Maekwatana

Chairman of the Board Index Living Mall Public Company Limited

Honorary Advisory Toyota Motor Thailand Company Limited

President Plantheon Company Limited

Asso. Prof. Suthi Ekahitanonda

Mr. Tevin Vongvanich

Mr. Yongyut Thavikulwat

Deputy Director, Research & Training Sasin Graduate Institute of Business Administration

Chairman of Sub-Committee on Competitiveness Building, NESDC

Vice Chairman, Executive Board Green Spot Company Limited

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TMA COUNCIL

TMA COUNCIL

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TMA COUNCIL

Chairman Mr. Teeranun Srihong Managing Director Celar Consulting Company Limited

Mr. Nithi Patarachoke

Mr. Thammasak Jittimaporn

Mr. Wirat Uanarumit

President SCG Cement-Building Materials Company Limited

Chief Executive Officer FN Factory Outlet Public Company Limited

Chief Executive Officer and President Thai Oil Public Company Limited

Vice Chairman

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COUNCILORS

COUNCILORS

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COUNCILORS

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Mr. Ariya Banomyong

Dr. Arak Sutivong

Mr. Aswin Techajareonvikul

Chief Transformation Officer & Founder Transformational

President The Siam Commercial Bank Public Company Limited

President & Chief Executive Officer Berli Jucker Public Company Limited

Mr. Birathon Kasemsri Na Ayudhaya

Mr. Bunn Kasemsup

Mr. Chaiwat Kovavisarach

Managing Director SCG Distribution

President & Chief Executive Officer Bangchak Corporation Public Company Limited

Mr. Manoon Sankunakorn

Dr. Nattakit Tangpoonsinthana

Mr. Pakit Iamopas

CEO Advisor Central Group of Companies

Executive Vice President Marketing Central Pattana Public Company Limited

Group CEO DTGO Corporation Limited and Chairman of the Executive Committee PRG Corporation Public Company Limited

Chief Content & Media Officer True Corporation Public Company Limited

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COUNCILORS

COUNCILORS

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COUNCILORS

Ms. Parnsiree Amatayakul

Ms. Pratana Mongkolkul

Independent Director SCG

Chairman Boutique Consulting Group Company Limited

Mr. Verajet Vongkusolkit

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Assoc. Prof.

Sakarindr Bhumiratana

CEO - Thai Sugar, Energy and New Business Mitr Phol Sugar Corporation Limited

Advisor King Mongkut’s University of Technology Thonburi

Mrs. Suphajee Suthumpun

Mr. Vichai Bencharongkul

Ms. Wanweera Rachdawong

Group Chief Executive Officer Dusit Thani Public Company Limited

Managing Director Benchachinda Holding Company Limited

Chief Executive Officer and Councilor Thailand Management Association

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CHAIRMAN OF MANAGEMENT GROUPS

CHAIRMAN OF MANAGEMENT GROUPS

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CHAIRMAN OF MANAGEMENT GROUPS

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Chairwoman of Corporate Performance Management Group Committee

Chairman of Digital Technology Management Group Committee

Chairwoman of Marketing Management Group Committee

Ms. Piyaporn Phanachet

Mr. Kosit Suksingha

Ms. Pathamawan Sathaporn

Chief Executive Officer TCM Corporation Public Company Limited

Executive Vice President Thai Beverage Public Company Limited

Executive Vice Managing Director Mindshare Thailand

Chairman of Operation Excellence Management Group Committee

Chairman of People Development Group Committee

Chairman of Technology Innovation Management Group Committee

Mr. Buntoon Porapukhum

Dr. Prasit Chatsanguthai

Dr. Tunyawat Kasemsuwan

Operation Excellence and Industry 4.0 Director, Living Solution and Housing Products Business SCG Cement-Building Materials Corporation Limited

Head of SCG Learning SCG

Director, Global Innovation Thai Union Group Public Company Limited

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SURVIVING THE CRISIS

SURVIVING THE CRISIS INTRODUCTION

COPING WITH THE NEW NORMAL

When COVID-19 first struck the world in the early month of 2020, no one would have ever imagined such a humongous destructive power of this magnitude. The global community has enjoyed the connectivity that is enabled by new technology and innovation without realizing that this too could put us at the unthinkable risk.

Especially at TMA where most of the activities involve getting people together, we were hit hard, even harder than any other crisis in the past. TMA had to move away from traditional way of work to the new norm just like the others. The following report will depict what we did to survive and thrive in the year of the historic COVID-19 pandemic.

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SURVIVING THE CRISIS

THE OFFICE WORKING FROM HOME, AGILITY NEW BREED OF STAFF

During the crisis, TMA was well aware of the need to adapt the work processes in consideration of the safety of its employees, while at the same time being able to continue to offer valuable services to our members. Since March 2020, TMA has taken measures that allow employees to work from home, using an online system to access information, coordinate, conduct meetings, and organize activities for members.

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Employees were encouraged choose any safe place to work from, such as returning to their home province to stay with their families. Whatever they chose, however, they had to comply with the safety measures advised by public health authorities, and if necessary, report on their trips to places carrying potential risks.

As a result of the changing situation, TMA’s staff have exhibited their agility and ability to learn quickly.

They were able to think creatively

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and efficiently use technological tools to design and deliver high quality services for TMA members and other clients. They also learned that there are new opportunities and channels for offering services when the pandemic crisis is over.

In addition, the employees have recognized their own strength, gained more self-confidence and inspiration for learning new things in order to further develop themselves, which was considered highly valuable to the organization.

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SURVIVING THE CRISIS

TURNING ON-LINE During the so-called lock down period, TMA was unable to conduct its main activities since most of them, either trainings or conferences, required in-person meetings.

Moreover, the suspension of international travel restricted us from bringing in overseas speakers and facilitators or organizing overseas trips throughout the year. TMA therefore had to resort to online activities in order to continue providing services to its members. Though it helped to some extent, but we had to admit that online activities were not as effective as in-person meetings and face-to-face interaction.

FREE SERVICES FOR MEMBERS As early as May, TMA launched the New Normal Series as the first free on-line service for members. The 5-episode series offered practical solutions to management conundrums in the new normal situation.

New Marketing Strategy

New Operation Platform

To learn the concepts of modern marketing during the new normal period as a result of the COVID-19 crisis, which caused changes in consumer behavior, including proper marketing tools and communication methods.

How the situation impacted human resources management, and sales and marketing by sharing applicable good practices, in order that businesses could learn approaches that could be applied accordingly.

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New Selling Skills

New People Skills

New Business Model

Introduced sales obstacle management techniques during the difficult times confronted by professional salespersons, to be used for connecting with customers and building meaningful, sustainable relationships and modern sales strategies that sales teams have to focus on, including the concept of sales team management and motivation.

Management techniques for successful business practices were all a result of effective people management; for example, how to adapt to the changing workplace, encouraging the team, promoting employees to work during the changes, and people’s changing skills.

Business view in the new normal situation, both from a broad and in-depth perspective, included digital transformation trends, and researches that captured and processed global trends into new business models, to serve as guidelines for organizations to adapt themselves to such changing trends.

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SURVIVING THE CRISIS

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Later in June and July, in order to respond to the global crisis as well as provide our members with foresight into the future, TMA incorporated a series of on-line discussions featuring both our global and local networks. The series, titled Navigating the Future was designed to provide the audience with fresh ideas on how to thrive in the new landscape, both after the pandemic and into the future. It was divided into 4 parts, namely: the Landscape, the Future of Business, Leadership and Work-Life Integration, covering topics ranging from Marketing / Logistics & Supply Chain / Leadership Transformative / Competitiveness / New Business Models / Business Sustainability.

In addition, there are future perspectives for various industries such as food / health care & wellbeing, etc. In this regard, TMA would like to recognize both our global and local contributors; for example, IMD,

the Institute for the Future, Duke Corporate Education, The Boston Consulting Group, Mach49, the Embassy of Israel, as well as Thai Union Group Public Company Limited, Betagro Public Company Limited, and members of the Board of Trustees and TMA Council, to name a few, for their great contribution to the success of the series.

Both were online activities which TMA specially organized so that TMA members would receive information and news on modern management and could make use of such information, regardless of the difficult situation we were facing. These activities were welcomed by TMA members, having an online audience of more than 1,000 for each live broadcast and playback. This marked a very successful beginning for transforming our service offerings into digital formats for the new normal era.

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NEW ACTIVITIES TO SERVE FUTURE ENTERPRISES

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Now that it is widely recognized that startups and new enterprises play a major role in national economic and social development as they are agile and hunger for new technologies and business models that can respond to rapid global changes when large organizations find it harder because of the high risks involved. Therefore, in order to fulfill the startup development ecosystem in Thailand, TMA has come up with two new activities, as follows

THE ANGEL INVESTOR READINESS TRAINING PROGRAM is a program to educate and facilitate potential Angel Investors who would encourage investment in early-stage startups. The program is funded by the Digital Economy Promotion Agency (depa), and jointly delivered by TMA and Seedstars from Switzerland, which is well-known internationally for its experience in building startup ecosystems as well as training investors.

The Angel Investor Readiness Training Program focuses on the overall process of startup investment, starting from investment tools, startup recruitment, and assessment, the roles of good and successful investors, for instance. The other purpose of the program is to develop local networks of investors and startups in order to create a working startup ecosystem. Due to the on-going pandemic, an online course was organized for the first group of 50 participants who expressed their satisfaction with the useful curriculum. Afterward, the participants had occasionally reunited to share their practices, which served well the purpose of the program.

TMA would see to it that subsequent classes would really help strengthen and complete the local startup ecosystems.

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SPACE-F PROJECT MANAGEMENT SPACE-F: FoodTech Incubator and Accelerator Program is a Triple Helix collaboration between the National Innovation Agency (NIA), Mahidol University, Thai Union Group Public Company Limited, Thai Beverage Public Company Limited, Betagro Public Company Limited, and Deloitte Touche Tohmatsu Jaiyos Co., Ltd. for the purpose of cultivating and developing FoodTech Startups, as well as to accelerate business growth in the Asian markets. It is also meant to be a platform to connect FoodTech Startups with key players in the ecosystem, such as government agencies, large corporations, investors, and academic institutions that will eventually lead to increased opportunities in accessing key factors for startup cultivation and growth acceleration.

TMA brings in our experience and expertise in project management, having both a body of knowledge and business partners in both Thailand and overseas, to manage the SPACE-F batch 2 project. The incubation and acceleration activities include classroom education, individual and group coaching and mentoring programs as well as providing networking opportunity for startups by connecting to and matching them up with potential business partners.

Not only that SPACE-F is a worthy project and that it is also in line with TMA’s mission to enhance Thailand’s competitiveness in the innovative agro-food sector, a strategic sector where Thailand has great potential and which has long been the backbone of the Thai economy, but it also serves as the beginning of the TMA future enterprise ecosystem.

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THE NEW APPROACH VIRTUAL CLASSROOM Due to the COVID-19 pandemic, TMA had to migrate to virtual training platforms in order to meet the challenges of the situation.

When the condition later eased up, TMA then returned to the normal classroom training. Although virtual classrooms could help solve certain problems when we had to observe social distancing, we had to admit that the interaction between instructors and learners, as well as a human touch in other aspects, were missing. This resulted in a decrease in efficiency and satisfaction.

In 2020, as corporations were braving the crisis and needed to react quickly, in-company programs in demand were Survival Planning, Crisis Management, Transformative Leadership, New Normal Strategies, Transformation Models etc. At the same time, with regard to public training programs, TMA had to offer our services using virtual platforms to conform to social distancing measures. Highlight of the year included Leading Digital Transformation, in collaboration with IONOLOGY, the expert in business and digital transformation from the UK. This online certificate program was designed to help senior leaders or team leaders develop a ‘digital mindset’ across all levels in the organization toward change, and create the right conditions, such as appropriate strategies, the right people, and an innovation culture, for the digital innovations to flourish.

The class, led by Professor Niall McKeown, achieved over 90% overall satisfaction upon completion of the program.

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VIRTUAL CONFERENCES All conferences were transformed into virtual events again to comply with social distancing measures. TMA broadcasted all conferences from a makeshift studio at our facility. Local guest speakers either joined the discussion in person or through online platforms, while all international speakers engaged online. It was a totally new experience which proved to be rather convenient but lacked the usual interaction and human contact that we were used to.

THAILAND COMPETITIVENESS ENHANCEMENT PROGRAM (TCEP) THE THAILAND COMPETITIVENESS CONFERENCE

The Thailand Competitiveness Conference was held for the 12th consecutive year in 2020. This conference is a platform where local and overseas opinion leaders, policy makers, executives from both the public and private sectors, and academics come together to discuss how we can enhance Thailand’s competitiveness according to IMD World Competitiveness Ranking. In 2020, a virtual conference was organized instead of the regular on-ground event due to the pandemic, with main issue being the COVID-19 crisis recovery. Guidelines on how to move forward were discussed, as follows: Reality Checks – an overview of the impacts on the business especially in the hospitality and tourism sectors, and the adjustment toward surviving the pandemic.

Understanding the Future – understanding the changing global landscape following the crisis which will affect the economy, business operations and the way of life.

Shifting the Strategies – building strategic capability, with crisis-proof approaches and concepts, to effectively address future uncertainty.

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EXECUTIVE FORUM ON COMPETITIVENESS

The Executive Forum on Competitiveness 2020 serves as a platform to create understanding on Thailand’s competitiveness enhancement effort from both the public and private sectors as well as approaches to prepare the country for the rapidly changing situation. This year, in response to the pandemic, the forum emphasized on how to adapt to survive and thrive amidst the new challenges. Three sessions were held, as follows : Session I: The Show Must Go on – the Way Forward for Tourism & Hospitality sector Tourism & Hospitality sector, considered the main source of revenue for Thailand that was severely hit by the COVID-19 pandemic, would need to urgently adapt in order to thrive in the ever so volatile situation.

Session II: The Future of Competitiveness Visioning the future of Thailand and looking for the proper solution to enhance Thailand’s resiliency and competitive capability.

Session III: The Fight over the Future Human resources development is considered as the foundation for Thailand’s development.

Being future-oriented, resilience and agile to the changes would be essential for the people of the future.

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SUSTAINABILITY FORUM Sustainability Forum 2020 : Creating a Resilient City, was organized on September 16-17. The forum highlighted the challenges of climate change and sustainability, which have increasingly affected most businesses in the recent years. Especially in 2020, when COVID-19 crisis has turned everyone’s attention to the matter since they all needed to consider integrating sustainability agenda into the business strategy in order to become more resilient and be prepared for the possibility of future catastrophe.

The forum duly focused on creating awareness on the importance of business resilience and the climate change problems and, at the same time, showing successful new business models and practices that were implemented to address these specific issues. At the end of the day, it was clearly depicted that being resilient would not only increase business efficiency but would also demonstrate the organizations’ genuine concern over the environment, society and the world as a whole.

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TECHINNO FORUM Technology Innovation Management Group (TIMG), in collaboration with the Foundation for the Promotion of Science and Technology under the Patronage of H.M. the King (Promotion-SCITEC), hosted the online seminar, TechInno Forum 2020, which was aptly themed “Future Living: TechInno for a Better Life”. This forum shares successful approaches and best practices in terms of state-of-the-art technology and innovation to help facilitate a better quality of life, by presenting three aspects: Living

an Automated Life, Living a Healthy Life, and Living a Green Life.

In addition to organizing a virtual conference, this year TIMG specially conducted a mini survey prior to the forum in order to gather opinions which were used to generate the discussion on Living the Good Life – Perspectives on Future Living through the lens of the management of SCG, and the National Science and Technology Development Agency.

DIGITAL TRANSFORMATION FORUM & THAILAND DIGITAL EXCELLENCE AWARDS 2020 Upon realizing the importance of digitalization of the corporations to cope with the challenges of the digital disruption, TMA and depa therefore joined hands in launching the Digital Transformation Forum & Thailand Digital Excellence Awards 2020. The Forum, under the theme Building Sustainable Supply Chains for the Future, was a virtual conference that gathered instructors from leading organizations that has applied digital technology throughout the value chain, for example, Google Cloud, The Siam Commercial Bank Public Company Limited, DHL Express International (Thailand) Company Limited, TV Direct Public Company Limited, etc.

their different capacity. At the end of the project, each participating organization received individual report that they could utilize further for their developmental benefits. In this inaugural year, the following organizations were honored for their excellence in the 4 categories, namely:

With regard to the Thailand Digital Excellence Awards, TMA, in collaboration with The Boston Consulting Group (BCG), have introduced, for the first time, The Digital Acceleration Index (DAI) to assess the participating organizations’ digital capability and classified them into 4 stages that would suggest

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Thai Digital Champion for Business Model Innovation Samitivej Public Company Limited

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Thai Digital Champion for Optimized Operations Chevron Thailand Exploration and Production, Ltd.

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Thai Digital Champion for Culture & Talent The Siam Commercial Bank Public Company Limited

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Thai Digital Champion for Tech Innovation & AI Krung Thai Bank Public Company Limited

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FOOD INNOPOLIS INTERNATIONAL SYMPOSIUM 2020 Not unlike the others, the food sector was also affected

by COVID-19 pandemic. The Food Innopolis International Symposium 2020 (FIIS) was thus organized with the title The Quest for a Sustainable Food System to reiterate the impact of the calamity. In response to the crisis which had transformational effect on the agro-food and related industries, it was inevitable that all stakeholders in the value chain had to adapt to s u st a i n t h e f u t u re fo o d system as well as to satisfy the changing way of life and global consumers’ behavior.

FIIS 2020, organized on virtual platform, was nevertheless honored by numbers of executive speakers from many leading local and overseas organizations. Interesting topics were, among others, The Future World of Food, The Way Forward: the Asian Point of View on Challenges & Opportunities, The Healthy & Sustainable Food System Overview, The Innovative Post - Harvest – The Sustainable Food Value Chain, World Innovation Cafe: Innovation and Entrepreneurship. The Symposium attracted even larger numbers of participants from both Thailand and elsewhere since they were able to access the event online.

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THAILAND CORPORATE EXCELLENCE AWARDS & SMEs EXCELLENCE AWARDS The Thailand Corporate Excellence Awards 2020 and SMEs Excellence Awards 2020 was organized on November 25, 2020, wiith the common objectives of the collaborators, TMA and Sasin Graduate Institute of Business Administration, to recognize Thai business’ managerial excellence as well as to encourage improvement among local organizations.

Both prestigious awards were granted by Her Royal Highness Princess Maha Chakri Sirindhorn, with Prime Minister H.E. General Prayut Chan-o-cha presiding over the award ceremony.

Although the ceremony this year was organized bearing strict safety precaution, TMA had made sure that it maintained the usual spirit of networking and celebration.

A report highlighting the excellence in various fields of each winning corporations were also distributed for educational purpose at the function.

In regard to the SMEs Excellence Awards, the project committee, whose members comprise senior executives from various leading organizations in Thailand, had put more emphasis on advising SMEs to improve their managerial capability which, hopefully, would in turn encourage their stakeholders in the value chain to also move forward in a more sustainable manner.

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For a record, the winners of SMEs Excellence Awards 2020, were SRIFA FROZEN FOOD COMPANY LIMITED in the Manufacturing category, CLICKNEXT COMPANY LIMITED in the Services category, and SMART VET COMPANY LIMITED in the Trading category. All SMEs were deemed exemplary as they were able to adapt and cope with the volatility and had demonstrated the ability to transform and manage their businesses in all seven aspects, namely Leadership, People management, Financial management, Marketing management, Products or services or trading process management, Innovation and creativity, and Sustainable development.

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MANAGEMENT GROUP ACTIVITIES

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CORPORATE PERFORMANCE MANAGEMENT GROUP (CPMG): TOP TALK CPMG has continually organized Top Talk every year by inviting accomplished leaders from both local and international private and public organizations to share their thoughts with top executive members.

With the on-going pandemic in 2020, TMA decided to bring Top Talk online while maintaining the essence and purpose of the event to focus on competitiveness enhancement agenda, at both national or corporate levels, especially in the time of crisis. This year, the honorable speakers were H.E. Dr. Eiman Al-Mutairi, Assistant Minister for H.E. Minister of Commerce and Investment, from Saudi Arabia on Competitiveness Enhancement Program, Mr. Pascal Morgan, CEO, Think, Speak, Transform & Board member, EUT, from Germany and Mr. Pablo Rodriguez, Founding Chief Executive Officer, Telefonica Alpha from Spain, both on Innovation and Technology.

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MARKETING MANAGEMENT GROUP (MMG) Marketing Management Group, with the awareness that the proper understanding and strong brand foundation would essentially drive businesses to peak potential, organized a workshop titled, BRAND ANATOMY: SPEED-UP YOUR BRAND POWER. The workshop and lecture was led by Thailand’s top marketing and branding experts, namely Ms. Piyanut Panpiemrus, Co-Founder & Head of Strategies HEAD100 Co., Ltd., Asst.

Prof. Dr. Ake Pattaratanakun Assistant to the President for Communication, Brand, Alumni Relations and Senior Lecturer in Department of Marketing, Chulalongkorn University, and Ms. Jitirath Supornjirapat, Head of Performance Mindshare Thailand.

More than 40 members joined in this virtual class that provided the participants with the holistic view of sustainable brand development, with strong emphasis on empathy and consumer’s journey.

PEOPLE DEVELOPMENT GROUP (PDG) The spread of COVID-19 caused everyone to turn to work from home (WFH) in order to reduce the risk of being infected and the chance of dispersion. A virtual training program on the Performance Evaluation while Working From Home was therefore organized by PDG-TMA to equip HR personnel with the knowledge and skills to properly evaluate employees’ performance and productivity when working from home. The course explained the WFH performance evaluation concept, techniques and processes and included one-on-one consultation on human resource management (HR Coaching and Clinic) by instructors, and experts from leading organizations in Thailand, such as Metro Systems Corporation Public Company Limited, The Siam Cement Public Company Limited, and The Siam Commercial Bank Public Company Limited. There were 23 participants in total.

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THAILAND MANAGEMENT DAY The Making of Future Enterprises Thailand Management Day is our annual event where TMA communicates the future global trends in management to our members, the general public as well as the media, in order for them to plan for a proactive strategy and to be prepared for a rapidly changing situation in this highly disruptive environment.

The contents for TMD 2020 virtual conference corresponded with the COVID-19 situation and organizational preparedness in all aspects.

Interesting topics addressing the VUCA world included, among others, Geopolitics after COVID-19 and the Implications for Business, Leaders Who Will Thrive in the Next Decade, Building a Better Working World, Global Markets Going Forward, The Future of Mobility, Integrative Manufacturing, the China Market : Treasure for Future Enterprises, Data Analysis and Lifecycle Marketing, Marketing Technology, and Customer Experience.

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MEMBERSHIP SERVICES TMA members are entitled to many privileges, such as development benefits, management consultation, versatile information and news both off and on-line, as well as access to researches and information from both TMA and our local and foreign partners. TMA members are also able to participate in more than six conferences per year at a special rate. Trend Talk is another activity specially designed to offer members with a venue to exchange ideas, learn, and build

networks without any expenses. In 2020, TMA organized 4 online Trend Talks, with more than 1,000 members participating, and in the following topics: • Digital Ecosystem Transformation • Internal Communication for Collaboration thru Crisis • Risk Management post-COVID-19 • The Making of a Smart City • The Citizen-centric Approach

TMA SPECIAL HR SURVEYS 2020 Due to the effect of the pandemic, TMA had initiated TMA Special HR Surveys 2020 project to gain initial insight into how the business had reacted. The survey was conducted in regard to two issues: 1. TMA Mini HR Survey 2020 was a survey about the impact of COVID-19 on HR policy and how HR had coped with the COVID-19 crisis. It was aimed at providing necessary information for decision making and planning as well as at establishing remuneration & welfare management policies, and personnel management for the future.

2. HR Health Check was a survey project to assess and compare the performance of HR within the same business group, in order to set goals and plan the “development of personnel management strategy” of the organization in the near future. This survey was part of the productivity survey on human resource management in the organization.

Both surveys took into account just the benefits information which were gathered from the extended pool of organizations of all sizes whether they were TMA members or the general public. TMA Special HR Surveys 2020 project was largely welcomed by HRM executives, considered as the starting point to encourage HR data analytics while at the same time, set off as a new service for our TMA members.

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On-line training for students, the “Building Good and Talented Management” Project, Creating Future Great Leaders Course The Yuthasar Na Nagara Foundation for TMA, with a mission to nurture Good and capable managers and leaders, has continually organized Creating Future Great Leaders project that would normally take in 2-4 outstanding students from universities all over Thailand to participate in the 2-week camp at TMA. This year, however, with the COVID-19 situation restraining the Foundation from conducting regular on-ground bootcamp, the program was shifted to 5 -day education through online platform instead, with students from 10 universities across the country, totaling 120 altogether, participated in the lecture and group activities via Zoom.

Contents under the two main tracks, Business Acumen and Leadership Essentials, comprised,

for example, Business Ethic, Strategic Thinking, Global Mindset, Business Transformation through Digital Disruption, Innovation, Leadership Communication, Design thinking workshop, etc.

This was regarded as a new dimension of students’ activity that TMA could improve on with the help of modern technology to make it more interactive and interesting in the future.

Photo by akson on Unsplash

OTHERS

39

ANNUAL REPORT 2020

40

THE FUTURE PLAN

THE FUTURE PLAN 2021 AT A GLANCE

With the goal to prepare our members for future readiness with one-stop service platform, TMA has come up with 3 strategies, namely to leverage global collaboration, to focus more on the content and to create a strong TMA community. Apart from the traditional segments that we have long engaged with, TMA is also looking towards

nurturing an ecosystem that will accommodate the enterprises of the future and encourage triple helix collaboration.

To address digital and technology disruption, TMA will also be focusing on digital transformation as well as the future agenda.

ANNUAL REPORT 2020

THE FUTURE PLAN

41

03 ANNUAL REPORT 2020

Photo by dylan lu on Unsplash

42

THE FUTURE PLAN

ANNUAL REPORT 2020

THE FUTURE PLAN

43

We are now working with numbers of local and global partners to incorporate series of digital transformation and innovation programs to cater to the needs to address this extremely volatile environment following COVID-19 pandemic. Another new area that we will concentrate on more seriously is Sustainability since it has become more and more prominent in every competitiveness ranking criteria. We would like to make sure that we cover all important agenda that contribute to the United Nations’ SDGs towards 2030 in our quest to enhance Thailand and the business community’s competitiveness.

As vaccination becomes widespread, we should be more assured that the pandemic situation will be more or less kept in control.

TMA therefore has planned to bring back the on-ground conferences in 2021 while keeping the online services, thus expanding our exposure further. At the end of the day, however, we come to realize that although technological advancement might empower us to do things we never imagined we could, we cannot deny that human contact and face-to-face interaction is still needed.

Two more new services in 2021 are Business Dialogue and Bite-sized, on-demand consultation. Members are entitled to join lively conversation on different topics all year long either online or in-person, with both local and international experts. While Bite-sized, on-demand consultation service is aimed at providing services to our members on business management, transformation or digital innovation management at your own paces and preferred timing, by TMA’s vast pool of experts or subject matters.

We look forward to serving you more and better in 2021.

Photo by fly d on Unsplash

ANNUAL REPORT 2020

44

FINANCIAL STATEMENT

FINANCIAL STATEMENT ANNUAL REPORT 2020

04 FINANCIAL STATEMENT

45

ANNUAL REPORT 2020

Photo by hector j on Unsplash

46

FINANCIAL STATEMENT

THAILAND MANAGEMENT ASSOCIATION

REPORT OF CERTIFIED PUBLIC ACCOUNTANT INDEPENDENT AUDITOR’S REPORT To the Committees and members of Thailand Management Association REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS OPINION We have audited the financial statements of Thailand Management Association (the Association), which comprise the statement of financial position as at December 31, 2020, the statement of income and expenditure and statement of changes in cumulative fund for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Association as at December 31, 2020, and its financial performance for the year then ended in accordance with Thai Financial Reporting Standards for Non-Publicly Accountable Entities.

BASIS FOR OPINION We conducted our audit in accordance with Thai Standards on Auditing. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Association in accordance with the Federation of Accounting Professions’ Code

of Ethics for Professional Accountants together with the ethical requirements that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

ANNUAL REPORT 2020

FINANCIAL STATEMENT

47

RESPONSIBILITIES OF MANAGEMENT FOR THE FINANCIAL STATEMENTS

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Management is responsible for the preparation and fair presentation of the financial statements in accordance with Thai Financial Reporting Standards for Non-Publicly Accountable Entities, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Thai Standards on Auditing will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Association or to cease operations, or has no realistic alternative but to do so.

As part of an audit in accordance with Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also : • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required ANNUAL REPORT 2020

48

FINANCIAL STATEMENT

to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Association to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

(Nalinee Chanwutitum) Certified Public Accountant Registration No. 5507 Bangkok June 17, 2021

ANNUAL REPORT 2020

FINANCIAL STATEMENT

THAILAND MANAGEMENT ASSOCIATION STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER 31, 2020 ASSETS

IN BAHT CURRENT ASSETS

NOTES

Cash and cash equivalents

4

Temporary investments

2020

2019

307,183.56

9,268,967.97

8,000.00

4,425,397.39

Trade and other receivables

5

20,235,442.99

41,646,532.65

Long-term investment in debenture due within one year

6

-

3,500,000.00

136,405.85

142,584.14

20,687,032.40

58,983,482.15

Office supplies Total Current Assets

NON-CURRENT ASSETS

NOTES

Deposit with commitment obligation

2020

2019

225,946.18

225,946.18

Long-term investment in debenture

6

4,500,000.00

8,500,000.00

Plant and equipment

7

27,553,256.11

30,089,744.61

Other non-current assets

954,725.71

654,725.71

Total Non-Current Assets

33,233,928.00

39,470,416.50

Total Assets

53,920,960.40

ANNUAL REPORT 2020

98,453,898.65

49

50

FINANCIAL STATEMENT

THAILAND MANAGEMENT ASSOCIATION STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER 31, 2020 LIABILITIES AND CUMULATIVE FUND

IN BAHT

CURRENT LIABILITIES

NOTES

Trade accounts and other payables

8

2020

2019

2,259,476.35

13,842,012.94

Current Income tax payable

2,670,135.03

2,529,728.76

Total Current Liabilities

4,929,611.38

16,371,741.69

NON - CURRENT LIABILITIES

NOTES

Employee benefits obligations

9

Total Non-Current Liabilities Total Liabilities

CUMULATIVE FUNDS

NOTES

Surplus of income over expenses-beginning

2020

2019

9,995,331.00

8,257,394.00

9,995,331.00

8,257,394.00

14,924,942.38

24,629,135.69

2020

2019

73,824,762.96

73,352,820.76

(34,828,744.94)

471,942.20

Total Cumulative Funds

38,996,018.02

73,824,762.96

Total Liabilities and Cumulative Fund

53,920,960.40

98,453,898.65

Surplus of income over (under) expenses for the year

ANNUAL REPORT 2020

FINANCIAL STATEMENT

THAILAND MANAGEMENT ASSOCIATION STATEMENTS OF INCOME AND EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2020 IN BAHT INCOMES

NOTES

Revenue from rendering services

2020

2019

38,907,619.23

140,049,027.25

Other incomes

339,393.28

537,773.53

Total Incomes

39,247,012.51

140,586,800.78

EXPENSES

NOTES

Costs of services Administrative expenses Income tax expense Total expenses Surplus of income over(under) expenses

ANNUAL REPORT 2020

2020

2019

53,216,293.49

115,327,601.95

20,069,042.25

21,978,268.07

790,421.71

2,808,988.57

74,075,757.45

140,114,858.58

(34,828,744.94)

471,942.20

51

52

FINANCIAL STATEMENT

THAILAND MANAGEMENT ASSOCIATION STATEMENTS OF CHANGES IN CUMULATIVE FUND FOR THE YEAR ENDED DECEMBER 31, 2020 IN BAHT SURPLUS OF INCOME OVER(UNDER) EXPENDITURE

Balance as at Januray 1, 2019

TOTAL CUMULATIVE FUND

73,352,820.76

73,352,820.76

471,942.20

471,942.20

Balance at December 31, 2019

73,824,762.96

73,824,762.96

Surplus of income over(under) expenses for the year

(34,828,744.94)

(34,828,744.94)

38,996,018.02

38,996,018.02

Surplus of income over expenses for the year

Balance at December 31, 2020

ANNUAL REPORT 2020

FINANCIAL STATEMENT

53

THAILAND MANAGEMENT ASSOCIATION NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 1. GENERAL INFORMATION 1.1 ASSOCIATION INFORMATION Thailand Management Association (TMA) was registered as an association in Thailand, with registration number of “jor 820”, on 28th July, 1964.

Overall objective To support the development, both in theory and in practice, of sounded management skills in the fields of industry, commerce, agriculture, cooperation, and public utility in Thailand – all of which are critical factors in prosperity of the economy and the people of Thailand, as well as in broadening human, financial and natural resources sustainability.

Specific objectives • To increase overall skills, education, and competencies of managers and personnel involved in the development of an organization • To act as a networking center for members to share information, skills and viewpoints in management • To assist members in providing best management practices to stimulate growth in members’ organizations • To support and maintain good corporate governance in organizations • To positively broaden the notion and acceptance of business management as a good and well-regarded career • To provide opportunities to exchange input and recommendations between management professionals and those with career interest; as well as to work together with other business industries and academic institutions in sharing / exchanging news and information on education requirement for present and future business management

• To work together with other associations with similar objectives in expanding business management courses, as well as increasing enrollments • To network with international associations in reciprocating news, information, and resources in order to continuously be updated with latest trend and know-how • To release PR news, and information on business management via newsletters and other documents • To support education, survey and research on business development in order to be more innovative and to enhance required skills • To operate on new strategies and other areas to achieve the objectives

TMA will not support any kind of movements / activities by using the Association’s fund, or attempt to force / ask members or anyone to oblige by the Association’s terms and conditions, should that objective implicate the Association to be a labor union or an employer association.

The Association is not associated with politics, under any circumstances.

TMA’s office address is 276 Soi Ramkham haeng 39 (Thepleela1), Ramkhamhaeng Road , Plubpla, Wangthonglang, Bangkok.

ANNUAL REPORT 2020

54

FINANCIAL STATEMENT

1.2 THE COVID-19 PANDEMIC

3. SIGNIFICANT ACCOUNTING POLICIES

The COVID-19 pandemic has resulted in an economic slowdown and adversely impacted most businesses and industries. This situation significantly affects TMA’s business.

TMA had to temporarily suspend operations for few months during the year 2020 due to lockdown measures in order to prevent the spread of COVID-19. These are significantly impacting the financial position, operating results, and cash flows. The management is continuously taking corrective actions to address this situation in order to lessen the impact on TMA’s assets and operations.

2. BASIS FOR PREPARATION OF THE FINANCIAL STATEMENTS

3.1 REVENUE AND EXPENSE RECOGNITION • Annual member fee is recognized by portion of the member period.

• Services incomes are recognized on an accrual basis.

• Interest income is recognised on a time proportion basis, taking account of the principal outstanding and the effective rate over the period to maturity.

• Costs and expenses are recognized on an accrual basis.

3.2 CASH AND CASH EQUIVALENTS

The financial statements are prepared in accordance with Thai Financial Reporting Standard for Non-publicly Accountable Entities (TFRS for NPAEs) promulgated by the Federation of Accounting Professions (FAP).

The financial statements are prepared and presented in Thai Baht. They are prepared on the historical cost basis except as stated in the accounting policies.

The preparation of financial statements in conformity with TFRS for NPAEs requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which estimates are revised and in any future periods affected.

An English version of the Company financial statements has been prepared from the statutory financial statements that are in the Thai language. In the event of a conflict or a difference in interpretation between the two languages, the Thai language statutory financial statements shall prevail.

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

Restricted cash in banks are presented under “non-current assets”.

3.3 TRADE ACCOUNTS RECEIVABLE Trade accounts receivable are stated at their invoice value less allowance for doubtful accounts.

The allowance for doubtful accounts is assessed primarily on analysis of payment histories and future expectations of customer payments. Bad debts are written off when incurred.

3.4 Long-term investment Long-term investment in debenture which have intension to hold until expire date are stated at cost less allowance for diminishing value (if any)

ANNUAL REPORT 2020

FINANCIAL STATEMENT

55

3.5 PLANT AND EQUIPMENT

3.8 FOREIGN CURRENCY TRANSACTIONS

Building and equipment are stated at cost less accumulated depreciation and losses on decline in value (if any).

Transactions in foreign currencies are translated to Thai Baht at the foreign exchange rates ruling at the dates of the transactions.

Depreciation is charged to the statement of income on a straight-line basis over the estimated useful lives of each part of an item of building and equipment. The estimated useful lives are as follows: Building 20 Air condition system 10 Office furniture - long term 10 Office equipment- long term 10 Office improvement 5 Office equipment 3-5

years years years years years years

3.6 SUPPLIES Supplies are recorded at cost (weighted average method) or net realizable value.

Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to Thai Baht at the foreign exchange rates ruling at that date. Foreign exchange differences arising on translation are recognised in the statement of income.

3.9 PROVISION A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate method.

3.7 EMPLOYEE BENEFITS Short-term employee benefits Salaries, wages, bonuses and contributions to the social security fund are recognized as expenses when incurred.

Benefits of Post-employment Defined contribution plans The Association and their employees have jointly established a provident fund. The fund is monthly contributed to by the employees and the Company. The fund’s assets are held in a separate trust fund and the Association’s contributions are recognized as expenses when incurred.

Defined benefit plans The Association has obligations in respect of the severance payments they must make to employees upon retirement under labor law.

The Association treats these severance payment obligations as a defined benefit plan.

The obligation under the defined benefit plan is considered from working period and expected benefit of employee which they will receive when they had retired together with retirement term and other related factor.

This obligation is determined based on the best estimation technique.

ANNUAL REPORT 2020

56

FINANCIAL STATEMENT

4. CASH AND CASH EQUIVALENTS

IN BAHT 2020

2019

Cash on hand

49,875.01

92,280.14

Cash in banks – current account

38,063.72

38,119.00

Cash in banks – saving account

219,244.83

9,138,568.83

Total

307,183.56

9,268,967.97

5. TRADE AND OTHER RECEIVABLE

IN BAHT 2020

Trade receivable

2019

19,782,155.00

41,013,331.00

• Advance payment

48,000.00

51,300.00

• Other receivable

381,246.89

501,755.86

24,041.10

80,145.79

20,235,442.99

41,646,532.65

Other receivable

• Interest receivable Total

ACCOUNT RECEIVABLE ANALYZED BY AGING ARE AS FOLLOWS

IN BAHT 2020

Within 30 days

2019

4,734,425.00

25,716,255.00

30 – 60 days

6,285,155.00

10,188,685.00

Over 60 days

8,762,575.00

5,108,391.00

19,782,155.00

41,013,331.00

Total ANNUAL REPORT 2020

FINANCIAL STATEMENT

6. LONG-TERM INVESTMENT

IN BAHT INTEREST RATE

Investment in debenture

2020

2019

3.00% – 3.40%

Due within one year

-

3,500,000.00

Due more than one year

4,500,000.00

8,500,000.00

Total

4,500,000.00

12,000,000.00

ANNUAL REPORT 2020

57

58

FINANCIAL STATEMENT

7. PLANT AND EQUIPMENT

AT COST

IN BAHT 2019

Land improvement

INCREASE

DECREASE

2020

6,514,833.90

-

-

6,514,833.90

58,815,536.30

-

-

58,815,536.30

Air condition system

4,773,897.19

-

-

4,773,897.19

Office furniture and equipment

5,590,083.78

287,256.32

-

5,877,340.10

7,508,079.18

67,000.00

-

7,575,079.18

83,202,430.35

354,256.32

-

83,556,686.67

Building and improvement

Long term office furniture and equipment Total cost

ACCUMULATED DEPRECIATION 2019

Land improvement

INCREASE

DECREASE

2020

6,514,829.90

-

-

6,514,829.90

37,578,024.84

1,390,764.46

-

38,968,789.30

Air condition system

1,894,607.68

476,689.62

-

2,371,297.30

Office furniture and equipment

4,777,792.14

412,690.23

-

5,190,482.37

Long term office furniture and equipment

2,347,431.18

610,600.51

-

2,958,031.69

53,112,685.74

2,890,744.82

-

56,003,430.56

Building and improvement

Total accumulated depreciation Net

30,089,744.61

27,553,256.11

DEPRECIATION (INCLUDED IN STATEMENT OF INCOME AND EXPENSE) FOR THE YEAR ENDED DECEMBER 31, 2019

2,957,957.52

FOR THE YEAR ENDED DECEMBER 31, 2020

2,890,744.82

ANNUAL REPORT 2020

59

FINANCIAL STATEMENT

8. TRADE AND OTHER PAYABLE

IN BAHT 2020

2019

Trade payable

568,636.15

2,197,625.99

Other payable

1,690,840.20

11,644,386.95

Total

2,259,476.35

13,842,012.94

9. EMPLOYEE BENEFIT OBLIGATIONS

IN BAHT 2020

Provision for Employee Benefit - beginning Increase Decrease Provision for Employee Benefit - ending

2019

8,257,394.00

6,492,353.00

1,737,937.00

1,765,041.00

-

-

9,995,331.00

8,257,394.00

Regarding to new Labour law related to the employee benefit for the employee who has service period over 20 years, TMA will provided additional provision for employee benefit when the new Labour Protection Act is effective.

ANNUAL REPORT 2020

60

FINANCIAL STATEMENT

10. ADMINISTRATIVE EXPENSES

IN BAHT 2020

Employee expenses

10,328,400.37

11,429,641.46

1,737,937.00

1,765,041.00

8,002,704.88

8,783,585.61

20,069,042.25

21,978,268.07

Provision for employee benefit Office expenses Total

2019

11. INCOME TAX Income tax of the association is calculated by income before deducted to expenses, except for member fee and benefit from donation. Tax rate are as follows: 1. Interest incomes

10

percent

2. Others income

2

percent

12. APPROVAL OF FINANCIAL STATEMENTS The financial statements were approved by the management of the Association on June 17, 2021.

ANNUAL REPORT 2020

FINANCIAL STATEMENT

61

Photo by javier quesada on Unsplash

ANNUAL REPORT 2020

62

FINANCIAL STATEMENT

YUTHASAR NA NAGARA FOUNDATION

FOR THAILAND MANAGEMENT ASSOCIATION NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 INDEPENDENT AUDITOR’S REPORT To the Committees of Yuthasar Na Nagara Foundation for Thailand Management Association REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS OPINION We have audited the financial statements of Yuthasar Na Nagara Foundation for Thailand Management Association (the Foundation), which comprise the statement of financial position as at December 31, 2020 and the statement of income and expenditure for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Foundation as at December 31, 2020, and its financial performance for the year then ended in accordance with Thai Financial Reporting Standards for Non-Publicly Accountable Entities.

BASIS FOR OPINION We conducted our audit in accordance with Thai Standards on Auditing. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Foundation in accordance with the Federation of Accounting Professions’ Code of

Ethics for Professional Accountants together with the ethical requirements that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

ANNUAL REPORT 2020

FINANCIAL STATEMENT

63

RESPONSIBILITIES OF MANAGEMENT FOR THE FINANCIAL STATEMENTS

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Management is responsible for the preparation and fair presentation of the financial statements in accordance with Thai Financial Reporting Standards for Non-Publicly Accountable Entities, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Thai Standards on Auditing will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Foundation or to cease operations, or has no realistic alternative but to do so.

As part of an audit in accordance with Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

ANNUAL REPORT 2020

64

FINANCIAL STATEMENT

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Association to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

(Nalinee Chanwutitum) Certified Public Accountant Registration No. 5507 Bangkok April 27, 2021

ANNUAL REPORT 2020

FINANCIAL STATEMENT

65

YUTHASAR NA NAGARA FOUNDATION FOR THAILAND MANAGEMENT ASSOCIATION STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER 31, 2020

ASSETS

IN BAHT CURRENT ASSETS

NOTES

2020

2019

Cash and cash equivalents

4

3,001,604.26

2,497,450.33

Short-term investments

5

761,201.96

760,677.84

-

505,505.45

Other current assets

59,944.09

278,974.81

Total Current Assets

3,822,750.31

4,042,608.43

Clearing cheques

NON - CURRENT ASSETS

Long-term investments

NOTES 6

Total Non-Current Assets Total Assets

2020 1,193,530.36

1,154,232.69

1,193,530.36

1,154,232.69

5,016,280.67

ANNUAL REPORT 2020

2019

5,196,841.12

66

FINANCIAL STATEMENT

YUTHASAR NA NAGARA FOUNDATION STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER 31, 2020

LIABILITIES AND CUMULATIVE FUND CURRENT LIABILITIES

NOTES

IN BAHT 2020

2019

Other Account payables

34,726.83

9,531.00

Total Current Liabilities

34,726.83

9,531.00

Total Liabilities

34,726.83

9,531.00

CUMULATIVE FUNDS

NOTES

2020

2019

Registered initial fund

1,100,000.00

1,100,000.00

Surplus of income over expense

3,881,553.84

4,087,310.12

Total Cumulative Funds

4,981,553.84

5,187,310.12

Total Liabilities and Cumulative Fund

5,016,280.67

5,196,841.12

ANNUAL REPORT 2020

FINANCIAL STATEMENT

YUTHASAR NA NAGARA FOUNDATION STATEMENTS OF FINANCIAL POSITION FOR THE YEAR ENDED DECEMBER 31, 2020

IN BAHT REVENUES

NOTES

Donation income

2020

2019

95,000.00

1,582,910.00

Interest income

21,497.55

43,436.51

Total Revenues

116,497.55

1,626,346.51

IN BAHT EXPENDITURES

NOTES

Educate grant

2020

2019 -

58,000.00

314,299.19

1,798,115.88

7,954.64

7,020.00

322,253.83

1,863,135.88

(205,756.28)

(236,789.37)

Surplus of income over expenditure, beginning of the year

4,087,310.12

4,324,099.49

Surplus of income over expenditure, end of the year

3,881,553.84

4,087,310.12

Expenses of scholarship program Operating expenses Total Expenditure Surplus of income over(under) expenditure for the year

ANNUAL REPORT 2020

67

68

FINANCIAL STATEMENT

YUTHASAR NA NAGARA FOUNDATION FOR THAILAND MANAGEMENT ASSOCIATION NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 1. GENERAL INFORMATION Yuthasar Na Nagara Foundation for Thailand Management Association (Foundation) has been registered in Thailand with registration number 1519. The objective of the Foundation is to support education, research and management analysis and coordination with other charity for public benefit.

The Foundation office is located at 276 Soi Ramkhamhaeng 39 (Theplela 1), Ramkhamhaeng Road, Kwaneng Plubpla, Wangthonglang District, Bangkok.

Yuthasar na nagara Foundation has been approved by Revenue Department to be Charity Publicly organization number 746 as letter number GORKOR 0702 GORMOR/ 1590 dated on August 17, 2011.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which estimates are revised and in any future periods affected.

An English version of the Company financial statements has been prepared from the statutory financial statements that are in the Thai language. In the event of a conflict or a difference in interpretation between the two languages, the Thai language statutory financial statements shall prevail.

3. SIGNIFICANT ACCOUNTING POLICIES 3.1 REVENUE AND EXPENSE RECOGNITION Revenues and expenses are recognized on an accrual basis.

2. BASIS FOR PREPARATION OF THE FINANCIAL STATEMENTS

3.2 Cash and cash equivalents

The financial statements are prepared in accordance with Thai Financial Reporting Standard for Non-publicly Accountable Entities (TFRS for NPAEs) promulgated by the Federation of Accounting Professions (FAP).

The financial statements are prepared and presented in Thai Baht. They are prepared on the historical cost basis except as stated in the accounting policies.

The preparation of financial statements in conformity with TFRS for NPAEs requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from estimates.

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

Restricted cash in banks are presented under “non-current assets”.

3.3 Investment Deposit with financial institutions with an original maturity more than three months but not over 1 year was classified as shortterm investment.

Deposit with financial institutions with an original maturity more than one year was reclassified as long-term investment.

ANNUAL REPORT 2020

FINANCIAL STATEMENT

4. SHORT-TERM INVESTMENTS

IN BAHT 2020

Current deposits at bank

2019 595.00

595.00

Saving deposits at bank

3,001,009.26

3,496,855.33

Total

3,001,604.26

2,497,450.33

5. SHORT-TERM INVESTMENTS

IN BAHT TERM

Fixed deposit

INTEREST RATE

6 months

0.60%

2020

2019

761,201.96

760,677.84

761,201.96

760,677.84

6. LONG-TERM INVESTMENTS

IN BAHT TERM

Fixed deposit

INTEREST RATE

24 months

0.80%

2020

2019

1,193,530.36

1,154,232.96

1,193,530.36

1,154,232.96

7. APPROVAL OF FINANCIAL STATEMENTS This financial statements has been approved by the Executive Committee on April 27, 2021.

ANNUAL REPORT 2020

69

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THAILAND MANAGEMENT ASSOCIATION