Unstoppable thinking leads to success

Unstoppablethinking leadsto success.

Always moving forward.The world of mass communicationsevolves by the second. As leading “Communicators”we must never rest on past achievements and always be prepared to progressand overcome new challenges. After all, more than one doorleads to success.

ContentsReport from the Board of Directors 6

Audit Committee Report for the Year 2011 8

Summary of Financial Information 9

Business Group 10

•GeneralInformation 11

•NatureofBusiness 13

Business Partners 16

•TheClientsandtheProducts 17

Financial Status 18

•TheRiskFactors 19

•StructureofShareholdersandManagement 20

•CorporateGovernance 34

•Inter-CompanyTransactions 55

•ExplanationandAnalysisReport 57

•ReportoftheBoardofDirectors’Responsibilities 61

fortheCompany’sFinancialStatements

•FinancialStatements&ConsolidatedFinancialStatements 62

Recognitions 88

•AwardsRecognitions 89

•OurWork 90

6

Report from the Boardof Directors

Forward.To all the new challenges.

7

Report from the Board of Directors

Becauseourgoalistoalwaysgobeyondexpectedsuccesses,oursuperb

achievementsin2012isyetanotherstrongstepforwardforFarEastDDB.In2012,the

companyanditssubsidiariesenjoyedtotalrevenuesof689.36millionBahtfromservices

andcommissions,anincreaseof11.83millionBaht,or1.74%,from2011.Netprofitswere

122.06millionBaht,an increaseof7.11millionBaht,or6.19%,whencomparedto2011.

2012wasalso the year thecompany took its first steps into theworldofdigital

communications.Trainingseminarswereorganizedtoeducatestaffinthedigitaldiscipline;

expertswereinvitedtoeducateandstrengthenouremployee’sdigitalfoundationinorderto

betteraccommodatefuturedevelopments.

The Board of Directors would like to express our gratitude to the company’s

shareholders, customers and business partners for strongly supporting the company’s

operations. The company’s success and growth is the result of the cooperation of all

employees’unceasingeffortstofurthergrowtheorganization.Asaresult,thecompanyhas

achievedstrongandsteadygrowthlastyear,andformorethan49years.

8

AUDIT COMMITTEE REPORT

TheCompany’sBoardofDirectors’MeetingNo.176(5/2012)onJune27,2012reappointedMr.Kachornsakdi

Vanaratseath, Mr. Amorn Asvanunt, Mr. Vichit Tantianunanunt and Mrs. Chattong Tippayakalin as Audit Committee

Memberswithatermofoneyear.AllappointedCommitteeMembershavetheappropriatequalificationsthatmeetthe

StockExchangeofThailand’srequirement.TheCompany’sSecretaryactsasitssecretary.TheCommitteeperformed

dutiesasassignedbytheBoardofDirectorsandreportedtheresultsonaregularbasis.TheAuditCommitteeheldtotally

fourmeetingsin2011asfollows:

1.Mr.Khachornsakdi Vanaratseath 4/4

2.Mr.Amorn Asvanunt 3/4

3.Mr.Vichit Tantianunanont 3/4

4.Mrs.Chattong Tippayakalin 4/4

TheManagementandtheAuditorjoinedsomeagendasdeemedappropriate.Thekeyperformancesin2012

aresummarizedasfollows:

1. ToensuredthattheCompany’sfinancialstatementswereconductedaccordingtotheGenerallyAccepted

AccountingStandardswithadequatedisclosure.TheCommitteereceivedtheManagementreportsandconsidered

itscommentssufficiently.RevieweditsquarterlyandannuallyfinancialstatementsbeforepresentingtotheBoard

forapprovalpriortosubmittingtotheStockExchangeofThailand.

2. Toensuredthatthecompanyhasappropriateandefficientinternalcontrolsystem.Consideredreports

fromtheinternalAuditDepartment,theAuditor’sreport.ReviewedauditresultsandfolloweduptheManagement

correctionofitsinternalcontrolsystemalongwiththeimprovementonefficientauditingwhereasitsInternalAudit

DepartmentreportsdirectlytotheAuditCommittee.Considereditsauditplanfortheyear2012andhastakento

improveinternalcontrolsinpartofasignificantweaknesscontinued.

3. ToensuredthattheCompanyhasconductedappropriateriskassessmentinvariousperspectivesbeing

beneficialtoriskmanagementofitsnewbusinessinvestment,operation,administrationandfinance.

4. Toreviewedrelatedtransactionsanddisclosureofinformationonrelatedtransactionswithindividuals

withpossibleconflictofinterestsinordertoensurecompliancewiththerulesandregulationsprescribedbythe

StockExchangeofThailandandrelatedlawswherebytheCompanyhasactedthoroughly,reasonably.

5. ToreviewedtheAuditCommittee’sCharterinordertoensurethatithascompletedassignmentsand

responsibilitiesinlinewiththeStockExchangeofThailandbestpracticesandsuitabilityfortheCompanybusiness.

6. To consider and recommended to theBoard ofDirectors for presenting to theOrdinaryMeeting of

Shareholderson theappointmentofMr.VichaiRuchitanont,CertifiedAuditorRegistrationnumber4054and/or

Mr.PravitViwanthananut,CertifiedAuditorRegistrationnumber4917and/orMr.BunjongPichayaprasat,Certified

AuditorRegistrationnumber7147ofANSAuditCompanyLimitedtobetheCompany’sAuditorsfortheyear2012.

(Mr.KhachornsakdiVanaratseath)

AuditCommitteeChairman

9

SUMMARY OF FINANCIAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS (Unit: Thousand Baht)

2012 2011 2010

Revenuefromservice&commission 689,364 677,526 623,768

TotalRevenue 772,159 757,780 693,863

GrossIncome 371,871 380,943 358,435

NetProfitbeforeInterest&IncomeTax 151,367 156,281 128,589

NetProfit 122,064 114,953 98,392

TotalAssets 1,375,633 1,216,107 1,174,143

TotalLiabilities 475,008 402,016 383,095

Shareholders’Equity 900,625 814,091 791,048

FINANCIAL RATIO

GrossIncome(%) 53.94 56.23 57.46

ReturnonRevenuefromservice&commission=EAT/REV 17.71 16.97 15.77

ReturnonTotalAssets=EAT/TA 9.42 9.62 8.63

ReturnonShareholders’Equity=EAT/EQUITY 14.24 14.32 13.04

EarningsPerShare(Baht) 15.53 14.95 12.73

CashDividendPerShare(Baht) *8.00 9.008.00

BookValuePerShare(Baht) 120.42 108.69 105.77

*AccordingtotheBoardofDirectors’Meeting,aproposalhasbeenmadetotheOrdinaryMeetingofShareholdersforapprovalinApril,2013.

10

Differentiation creates high impact results.

BusinessGroup

11

GENERAL INFORMATION

COMPANY NAME FarEastDDBPublicCompanyLimited.

Registered No. 0107537001528

Head Office 465/1-467SiAyutthayaRd.,RatchathewiDistrict,Bangkok10400

Tel.0-2354-3333

Fax.0-2644-9550-2

E-MailAddress:[email protected]

Website:www.fareastddb.com

Nature of Business AdvertisingAgency

Authorized Capital Baht75,000,000

JURISTIC PERSONS THE COMPANY HOLDING SHARES OF 10% UPWARDS

1. Fame Line Co., Ltd.

465/1-467SiAyutthayaRoad,RatchathewiDistrict,Bangkok10400Tel.0-2354-3555Fax.0-2354-3556

NatureofBusiness AdvertisingAgency

AuthorizedCapital Baht10,000,000

SharesHeld 86.48%

2. Rapp Collins (Thailand) Co., Ltd.

465/1-467SiAyutthayaRoad,RatchathewiDistrict,Bangkok10400Tel.0-2354-3577Fax.0-2354-3578

NatureofBusiness AdvertisingAgencyandDirectMarketing


SharesHeld 52%

3. Integrated Communication Co., Ltd.

465/1-467SiAyutthayaRoad,RatchathewiDistrict,Bangkok10400Tel.0-2354-3588Fax.0-2354-3589-90

NatureofBusiness PublicRelations


SharesHeld 40%

4. Intercontinental Holding Co., Ltd.

465/1-467SiAyutthayaRoad,RatchathewiDistrict,Bangkok10400Tel.0-2354-3549Fax.0-2644-9550-1

NatureofBusiness HoldingCompany


SharesHeld 40%

12

5. Media Intelligence Co., Ltd.

208WirelessRoad,PatumwanDistrict,Bangkok10330Tel.0-2651-5377Fax.0-2651-5370

NatureofBusiness Allmediabuying,sellingandplanning


SharesHeld 33.33%

6. SPA-Today-Far East (Thailand) Co., Ltd.

11Fl,RajaparkBuilding,163Sukhumvit21,Klongtoey,Bangkok10110Tel.0-2258-9094Fax.0-2258-9095



SharesHeld 30%

7. Myanmar SPA-Today- Far East Co., Ltd.

174(A)DhammaZediRoad,BahanTownship,Yangon,MyanmarTel.95-1-524722Fax.95-1-527507


AuthorizedCapital US$83,333

SharesHeld 30%

Other Referees

Company Registrar

ThailandSecuritiesDepositoryCo.,Ltd.

TheStockExchangeofThailandBuilding,62RachadapisekRd.,Klongtoey,Bangkok10110

Tel.0-2229-2800Fax.0-2359-1259

Auditors

Mr.VichaiRuchitanontand/orMr.PravitViwanthananutand/orMr.BunjongPichayaprasat

ANSAuditCo.,Ltd.

100/72,22ndFloor,100/2VongvanijBuildingB.,Rama9Road,HuayKwang,Bangkok10320

Tel.0-2645-0107-9Fax.0-2645-0110

13

NATURE OF BUSINESS FarEastDDBanditsOneStopCommunicationsubsidiaryconductbusiness,whichismutuallycomplementary

withOneStopoperatingprimarilyinaconsultancycapacityasoutlinedbelow:

1. One stop communication consultant service

TheCompanyspecializesinintegratedcommunications,coveringtheanalysisbasedonfundamentalstudy

ofkeyfactorsthatcouldaffectthebrand,aidedbytheuseofglobalDDBlicensedtools,knownasBrandConviction

Springboard®andROISpringboard®.BrandConvictionSpringboard®isoneoftheCompany’sproprietarytools

thathasbeendevelopedtohelpgiveabrandaclearfuturedirectionandprovideguidelinesforallactions,while

ROISpringboard®providesguidelineforcommunicationplanning.TheCompanyprovidesservicesincreatingthe

advertisingmaterialsandmediaplanningstrategybothtraditionalanddigitalmedia,includingcoordinatingwithother

subsidiariesandsupplierstocreatepublicrelationsplanandactivitiesandCustomerRelationshipManagement

service.Moreover,theCompanyalsoprovidesmarketandconsumerwithquantitativeandqualitativeresearchand

observationbytheprofessionalresearchteamthroughFarEastDDBInsightsSpringboard®,anothercompany’s

proprietarytool.

2. Production Advertising-related services

TheAgenciesprovideservicesincreatingandproducingadvertisingfilmsandradiospots,creatinglayouts

andproducingprintads,directmails,brouchures,digitalmediaetc.accordingtothecommunicationplanaswellas

coordinatewithproductionsupplies.Itincluderscoordinatingwithothersubsidiariesandsuppliestocreatepublic

relationsplanandactivities,buildandmanagedatabase,anddodirectmarketing.

3. Advertising agent/broker

Acting as agent or broker, theAgencies dealwithmedia owners such as television, radio, newspaper,

cinema,digitalmediaandmagazineformediaplacements.Acommission-basedpaymentintheformofAgency

Feeisearnedintheprocess.

The Group’s Overall Business Activities

Far East DDB Public Company Limited

ThesedaysFarEastDDBPublicCompanyLimitedhasbecomemuchmorethanjustanadvertisingagency.

Ithasbecomeamajortotallyintegratedmarketingcommunicationconsultant.Itsservicesfocusingonsupporting

customerstoachievebusinesssuccessthroughtheeffectivecommunicationplanandcreativework.Theseoperations

includeproduct,marketandconsumeranalysis,strategicplanningtodefinetheconceptofcommunication,

advertisementproduction,effectiveplanningandpurchasingofmedia.Thiswillalsoinvolvedworkingand

coordinatingwithothermediacompaniesaswellasevaluatingthetotalmarketingcommunicationplan.

Fame Line Company Limited

FameLineCo.,Ltd.isasubsidiaryofFarEastDDBPublicLtd.Itisamedium-sized,full-servicedbrandengagement

agency, established for business competitiveness and growth. Fame Line provides comprehensive marketing

communicationservicesincludingstrategicbrandplanning,creationofadvertisingmaterialsandbrandactivation,planning

andpurchasingofmedia,aswellasdigitalservicesrangingfromdigitalstrategyandplanning,designandsocial

networkcreation.Atbest,FameLineCo.,Ltd.commitstogeneratebestresultstoourclients’needsbyworking

closelywithclients,andintentlyfocusingtoprovidebestbusinesssolutionspossible.Adherencetoadvertising

professionalcodes,ethicalconductsandsocialresponsibilityis,however,highlyimportantinourmindsetanddaily

operation.DuetoFameLine’sabsoluteindependencyfromFarEastDDBPublicLtd,ouraccountmanagementis

highlyflexible,enablingthecompanytoextensivelyengageandrespondtoavarietyoftoday’sbusinessdemands.

14

Product / Service Operation by % of 2012 2011 2010

Share

holding Revenue % Revenue % Revenue %

Advertising Agency FarEastDDB

RevenuefromService&Commission PLC. 434,841 87.52 488,624 89.51 424,140 89.67

DividendIncome 30,101 6.06 25,774 4.72 24,647 5.21

OtherIncome 31,898 6.42 31,504 5.77 24,215 5.12

Total Revenue 496,840 100.00 545,902 100.00 473,002 100.00

Advertising Agency FameLineCo.,Ltd. 86.48

RevenuefromService&Commission 244,659 90.75 175,265 86.05 189,620 86.82

OtherIncome 24,940 9.25 28,417 13.95 28,793 13.18

Total Revenue 269,599 100.00 203,682 100.00 218,413 100.00

Advertising Agency RappCollins 52.00

RevenuefromService&Commission (Thailand)Co.,Ltd. 9,942 99.89 14,106 99.97 10,331 99.37

OtherIncome 11 0.11 4 0.03 66 0.63

Total Revenue 9,953 100.00 14,110 100.00 10,397 100.00

Public Relations Integrated 40.00

RevenuefromService&Commission Communication 132,093 97.94 98,748 97.50 118,211 98.33

OtherIncome Co.,Ltd. 2,776 2.06 2,536 2.50 2,007 1.67

Total Revenue 134,869 100.00 101,284 100.00 120,218 100.00

Holding Company / Retailer InterContinental 40.00

RevenuefromService HoldingCo.,Ltd. 360 34.78 360 36.07 360 38.38

DividendIncome 577 55.75 577 57.82 500 53.30

OtherIncome 98 9.47 61 6.11 78 8.32

Total Revenue 1,035 100.00 998 100.00 938 100.00

Media Buying, Selling & Planning MediaIntelligence 33.33

RevenuefromService Co.,Ltd. 1,236,920 88.64 1,203,582 89.08 942,270 87.83

OtherIncome 158,592 11.36 147,602 10.92 130,515 12.17

Total Revenue 1,395,512 100.00 1,351,184 100.00 1,072,785 100.00

Shareholding & Revenue Structure of The Company / Subsidiary and Associated Companies

Rapp Collins (Thailand) Company Limited

RAPP:“Experts in multichannel communication”,wasestablishedasasubsidiaryofFarEastDDBPublic

CompanyLimitedsince2003RAPPisapowerfuldatadrivenmarketingcompanythatcombinesdata,digital,analytics

andstrategictodrivecomprehensiveclientcentricsolutions.Withourabilitytoutilizetraditional,digital,socialand

mobilemediahelpsproducemoreeffectiveresultsfortheagencyandtheclient.

RAPPThailandisthetradingnameofRappCollins(Thailand)CompanyLimited.

15

Cross Shareholding Structure

FE Holding in Other Firms Other Firms holds

Share in FE

No.

Names Proportion of Proportion of

Shareholding Shareholding

1 Holding of shares exceeding 50%

A) OtherfirmsholdsharesintheCompanyexceeding50%,theCompany

mustnotcrossshareholdinginotherfirms.

B) TheCompanyholdssharesinotherfirmsexceeding50%,theother

firmsmustnotcrossshareholdingintheCompany.

C) TheCompanyholdssharesexceeding50%betweentwoormoreother

firms,anyotherfirmsmustnotcrossshareholdingeachother.

1 FameLineCo.,Ltd. 86.48 -

2 RappCollins(Thailand)Co.,Ltd. 52.00 -

2 Holding of shares exceeding 25% not exceeding 50%

A) OtherfirmsholdsharesintheCompanyexceeding25%butnotexceeding

50%ofshares,theCompanymustnotcrossshareholdinginotherfirms

exceeding10%.

B) TheCompanyholdssharesinotherfirmsexceeding25%butnotexceeding

50%ofshares,theotherfirmsmustnotcrossshareholdingintheCompany

exceeding10%.

1 IntercontinentalHoldingCo.,Ltd. 40.00 -

2 IntegratedCommunicationCo.,Ltd. 40.00 -

3 MediaIntelligenceCo.,Ltd. 33.33 -

4 SPA-Today-FarEast(Thailand)Co.,Ltd. 30.00 -

5 MyanmarSPA-Today-FarEastCo.,Ltd. 30.00 -

3 Holding of shares not exceeding 25%

A) OtherfirmsholdsharesintheCompanynotexceeding25%,theCompany

mustnotcrossshareholdinginotherfirmsexceeding25%.

B) TheCompanyholdssharesinotherfirmsexceedingnotexceeding25%,

theotherfirmsmustnotcrossshareholdinginotherfirmsexceeding25%.

1 SahaPathanapibulPlc. 0.34 12.30

2 SahaPathanaInterholdingPlc. 0.28 13.60

3 I.C.C.InternationalPlc. 0.29 10.64

16

BusinessPartners

Go far beyond success with great partners.

17

THE CLIENTS AND THE PRODUCTS

ACSInsuranceBroker(Thailand)Co.,Ltd.

AmericanInternationalAssuranceCo.,Ltd.

AsiaInsurance1950Co.,Ltd.

AsianPropertyDevelopmentPlc.

BangkokAthleticCo.,Ltd.

BluescopeLysaght(Thailand)Limited

BluescopeSteel(Thailand)Limited

B-QuikCo.,Ltd.

CarabaoTawandangCo.,Ltd.

CountryGroupDevelopmentPublicCompanyLimited

DepartmentofInternationalTradePromotion

DepartmentofProvincialAdministration

DHASiamwallaLtd.

DynamicSatcomCo.,Ltd.

Esso(Thailand)Plc.

GlobizVentureCo.,Ltd.

GoldenCupCommercialCo.,Ltd.

I.C.C.InternationalPlc.

IRPCPlc.

Johnson&JohnsonConsumer(Thailand)Ltd.

KilangMakananMameeSdnBhd

KrungThaiBankPlc.

LionCorporation(Thailand)Ltd.

MCOTPlc.

OmronHealthcareSingaporePteLtd.

PensMarketingAndDistributionCo.,Ltd.

Pepsi-Cola(Thai)TradingCo.,Ltd.

PhilipMorrisThailandLimited

PresidentBakeryPlc.

SahaPathanapibulPlc.

SiamSanitaryWareIndustryCo.,Ltd.

SoonthornTanyasabCo.,Ltd.

StudentLoan

SyngentaCropProtectionCo.,Ltd.

T.A.C.ConsumerCo.,Ltd.

ThaiCeramicCo.,Ltd.

ThaiFermentationIndustryCo.,Ltd.

TheCPACRoofTileCo.,Ltd.

TheSiamSanitaryFittingsCo.,Ltd.

TrueCorporationPublicCompanyLimited

UnileverThaiTradingLimited

FOOD & BEVERAGES

CarabaoDangEnergyDrink

FarmhouseBakery

HeartiBenecolDietarySupplementProduct

KewpieMayonnaise

KewpieVinegar

LiptonIceTea

MamaInstantNoodle

MamaJokCup

MontFleurMineralWater

Mr.PotatoCrisp

RachachurosMSG

RichesseYogurt

RuskiInstantNoodle

SueSatInstantNoodle

TanyatipRice

V-SlimCoffee

HOUSEHOLD PRODUCTS

108ShopDetergent

Fight

Hi-ClassSoftener

LiponFDishwashingLiquid

SueSatDetergent

SueSatToothpaste

STATIONERY

ElephantCorrectionPen

ElephantFile

ElephantStaples

MasterArtColors

QuantumCorrectionPen

QuantumMechanicalPencil

QuantumPen

REAL ESTATE

AsianPropertyProjects

ElementsCondominium

SERVICE

KrungThaiBankProduct&Services

TigerMart

Truemove

B-QuikQuickFitAutoServiceCenter

ACSInsurance

AIAPersonalAccident/LifeInsurance

Asia3PlusMotorInsurance

APPAREL & PERSONAL ACCESSORIES

ArrowApparelProducts

LacosteApparelProducts

PanSportShoes

PS.JuniorShoes

WacoalLingerie

PERSONAL CARE

BSCCosmetology(CosmeticandSkinCare)

BSCPanadda

Clean&ClearFacialCareProducts

FallessShampoo

GoldenCupOil

IKnewAntiStretchMarkCream

KodomoBabyOralCare

KodomoBabyPersonalCare

NeutrogenaFacialCareProducts

Q’leanAntiDandruffShampoo

CONSTRUCTION MATERIALS &

CONSUMER DURABLES

CottoFaucet

CottoSanitaryWare

CottoTiles

JingjoeLeksteel

Ranbuildprefabricatedsteelshed

TraChangExcellaRoofTiles

OTHER

BangkokReadforLife

DepartmentofProvincialAdministration

DITP:Thailand’sTrustMarks

DynasatSatelliteDish

EssoFuel

IRPCPetrochemical

La-Z-BoyChairs

OmronBloodPressureMonitor

PhilipMorris

StudentLoan

SyngentaFertilizer

18

FinancialStatus

Financial strength fosters unforeseen advantages.

19

THE RISK FACTORS

The risk of loss of major clients

TheCompany’sfourmajorclientsareSahaPathanapibulPlc.,LionCorporation(Thailand)Ltd.,CarabaoTawandang

Co.,Ltd.andKrungThaiBankPlc.,andThesefourcompaniesaccountfor50.11%oftheCompany’stotalrevenue.

Intoday’scompetitivesituation,theseclientsmayleaveusorcutdowntheirbudget,whichwouldtremendously

affecttheCompany’soperationsandrevenue.

However,theCompanyisdeterminedtoprovideservicesfortheprospectclientsandcontinuouslyimprovethe

qualityofproductsandservicesfortheongoingclients.TheCompanyisveryconfidentthatthehighestspending

sevenclientshavebeenwiththeCompanyformorethan10years,andotherclientswillcontinuetoremainon

goodtermswiththeCompanyinthefuture.

The risk from loss of professionals in the advertising field

Theadvertisingbusinessdependsontalentedprofessionalsasamainresource.Thosetalentedprofessionals

whohavespecialexpertiseandskillsincreativityandcommunicationplanningareinshortsupply.

Inordertocopewiththisproblem,theCompanyplacesastrongemphasisonimprovingtheskillsofemployees

atalllevelstostrengthentheircapacityanddeveloptotheirfullpotentialatalltimes.Thecompanyregularlysets

uptrainingcoursesandseminarstoelevateskillsandincreaseknowledgeinordertoensurethemostandefficient

businessandaccountmanagement.TheCompanyplacesstrongemphasisonstrategicplanningandcreativethinking

ineverybusinessprocessinordertoeffectivelydealwithnewmarketsandmedias.

TheCompanyemphasizestheimportanceofhumanresourcedevelopmentbyofferingopportunitiesfor

employeesto improvework-relatedskillsbyarranginginternalseminars, invitingknowledgeableguestspeakers

frommanyfieldsandsendingemployeestoattendseminarsaboard,allofwhichhelptoelevateskillsofemployees

toallowthemtocompeteininternationallevel.

The risk from the changes of policy by global and regional customers

Globalandregionalcustomerstendtousethesameadvertisingagencynetworkineverymarketinorderto

communicatethesamemessageinternationally.Since,thecompanyenteredintoabusinesscontractwithDDB

worldwide,thecompanyhasobtainedmanymoreclientsfromtheglobalandregionalnetwork.However,ifglobal

orregionalcustomersdecidetochangetheirpolicyandcanceltheircontractwiththeDDBnetwork,ourcompany

willhavenoalternativethantoaccepttheloss.

The risk from investment

TheCompany invests insubsidiarycompaniesthatareoperating ineither thesameorcomplimentaryand

relatedbusinesses,whichisaconsideredrisk.Eventhoughthereissomecross-holdinginvestmentinanumber

of thesesubsidiarycompanies, thecompanydoesnothaveanycontrolover thesebusinesses.TheBoardof

Directorsofeachsubsidiarycompanyisinchargeofmanagementanddecisionmaking.

TheCompanyreceivesareturnoninvestmentintheformofdividends.Incasethesubsidiarycompaniesmake

aloss,thecompanyhasalreadymadeanallowanceforlossorimpairmentofinvestmentintheCompany’sprofit

andlossstatement.

The risk from credit term allowance

TheCompanyhasacautiouscreditallowancepolicybyhavingacontractordocumenttoendorseallallowances.

TheCompanyalsohasastrictfollow-upprogram,therefore,thecompanydoesnotexpectanysignificantloss

fromtheseaccountreceivables.

20

STRUCTURE OF SHAREHOLDERS AND MANAGEMENTShareholders

As at the close of share register on April 5, 2012

10MajorShareholdersasatthecloseofshareregisteronApril5,2012

Type Person Share %

Juristic Persons

Thai 28 3,904,553 52.06

Foreign 2 825,000 11.00

Private Individuals

Thai 291 2,726,247 36.35

Foreign 3 44,200 0.59

Total 324 7,500,000 100.00

Names No. of Shares %

1. ChokwatanaGroups 1,603,944 21.39

2. SahaPathanaInter-HoldingPlc. 1,020,000 13.60

3. SahaPathanapibulPlc. 922,650 12.30

4. Mr.SamrerngManoonpol 804,900 10.73

5. I.C.C.InternationalPlc. 797,800 10.64

6. DM9Holding 750,000 10.00

7. I.D.F.Co.,Ltd. 171,000 2.28

8. Mrs.OrapinPoonsakudomsin 117,900 1.57

9.Newcity(Bangkok)Plc. 85,500 1.14

10.HlanpooCo.,Ltd. 78,300 1.04

21

Dividend Payment Policy

Company’s Dividend Payment Policy

TheCompanyintendedtoallocatedividendstotheshareholdersattherateofBaht3pershareperyear,

subjectingmainlytotheeconomicsituationandtheCompany’sresultsofoperation.

Nevertheless,duringthepastfiveyears,theCompanyhadpaiddividendtoshareholdersfairlywiththerateis

suitabletoeachperiodeconomysituationasfollows:

Year 2011 2010 2009 2008 2007

Valueofshare(Baht) 10.00 10.00 10.00 10.00 10.00

Dividendpershare(Baht) 9.00 8.00 5.00 5.00 5.00

Totalamount(Baht) 67,500,000.00 60,000,000.00 37,500,000.00 37,500,000.00 37,500,000.00

Ratio(%)netprofit 78.66% 79.98% 63.14% 79.28% 80.45%

Company subsidiaries’ Dividend Payment Policy

TheCompanysubsidiariesintendedtoallocatedividendsattherateof50%oftheprofitaftertax.

22

1. M

r. Boonchai Chokwata

na65

•TheDoctoralHonoraryDegreein

4.90

MissChailadaTantivejakul’s

Liste

d com

panies

•Chairman

Communication,NaresuanUniversity

father

1972-Present

•ChairmanoftheExecutiveBoard•SahaPathanapibulPlc.

•AuthorizedDirector

•B.A.(PoliticalScience),

2010-Present

•Chairman

RamkhumhaengUniversity

2007-Present

•IndependentDirector

•MFCAssetManagementPlc.

•BusinessAdministrationfrom

•AuditCommittee

WisconsinStateUniversity

2011-Present

•Director

•PanAsiaFootwearPlc.

atSuperior,U.S.A.

2011-Present

•Director

• ThaiPresidentFoodPlc.

•DirectorAccreditationProgram

2012-Present

•Director

•SahaPathanainter-holdingPlc.

(DAP)3/2003fromIOD

Non Liste

d Com

panies

•17companies

•DirectorCertififfiicationProgram

Com

petitive Busin

ess relate

d

(DCP)68/2005fromIOD

to

Com

pany’s Busin

ess

1989-Present

•Chairman

•FameLineCo.,Ltd.

1996-Present

•Chairman

•IntegratedCommunicationCo.,Ltd.

1996-Present

•Director

•SPA-Today-FarEast

(Thailand)Co.,Ltd.

1996-Present

•Director

•MyanmarSPA-Today-FarEastCo.,Ltd.

2003-Present

•Director

•RappCollins(Thailand)Co.,Ltd.

2. M

r. W

asin

Teyate

eti

64

•BachelorofAccountancy,

0.23

-None-

Liste

d com

pany

•ViceChairman

ChulalongkornUniversity

1997-Present

•IndependentDirector/

•SahaPathanapibulPlc.


•DirectorAccreditationProgram(DAP)

AuditCommittee

3/2003fromIOD

Non Liste

d Com

panies

•3companies

Com

petitive Busin

ess relate

d

to Com

pany’s Busin

ess

1996-Present

•Director


(Thailand)Co.,Ltd.

1996-Present

•Director

•MyanmarSPA-Today-FarEastCo.,Ltd.

1999-Present

•Chairman

•MediaIntelligenceCo.,Ltd.

2003-Present

•Chairman


3. M

r. Dan Sornm

ani

48

•Master’sDegreeinMarketing,

0.53

-None-

Liste

d com

pany

-None-

•ManagingDirector

CanberraUniversity,Australia

Non Liste

d Com

pany

-None-



Com

petitive Busin

ess relate

d

-None-

•RiskManagement

(DAP)55/2006fromIOD

to

Com

pany’s Busin

ess

Committee

Boar

d of

Dire

ctor

s

DetailsofBoardofDirectorsandExecutives

Nam

e / Positio

n

Age

Education

% Share

s

Fam

ily Relationship

Experiences

hold

ing

Betw

een Directo

rs

Perio

d

Positio

n

Com

pany

23

4. M

rs. Siriw

an Vilassakdanont

58

•Master’sDegreeofBusiness

0.05

-None-

Liste

d com

pany

•Director

Administration,SasinGraduate

2009-Present

•ExecutiveDirector

•ThaiWacoalPlc.


InstituteofBusinessAdministration

Non Liste

d Com

panies

•8companies

ofChulalongkornUniversity

Com

petitive Busin

ess relate

d

-None-


to

Com

pany’s Busin

ess

(DAP)3/2003fromIOD

5. M

rs. M

alee Leelasiriw

ong58

•BachelorofLaw,

0.03

-None-

Liste

d com

pany

-None-

•Director


Non Liste

d Com

pany

•1company

•HumanResourceDirector


Com

petitive Busin

ess relate

d


(DAP)2/2003fromIOD

to

Com

pany’s Busin

ess

•RiskManagement

1989-Present

•Director

•FameLineCo.,Ltd.

Committee

1990-Present

•Director

•ImageFirstCo.,Ltd.

2003-Present

•Director


2003-Present

•Director

•IntegratedCommunicationCo.,Ltd.

6. M

rs. Chailada Tantiveja

kul

36

•Master’sDegreeinInternational

3.61

Mr.BoonchaiChokwatana’s

Liste

d com

pany

•Director

CommerceandPolicy,

daughter

2011-Present



•FinancialDirector

GeorgeMasonUniversity,USA.

Non Liste

d Com

panies

•6companies



Com

petitive Busin

ess relate

d

•RiskManagement

(DAP)55/2006fromIOD

to

Com

pany’s Busin

ess

Committee

2004-Present

•Director


(Thailand)Co.,Ltd.

7. M

r. Khachornsakdi

65

•Master’sDegreeinAccountancy,

-

-None-

Liste

d com

pany

Vanarats

eath

WesternIllinoisUniversity,U.S.A.

1996-Present




•GraduateDiplomainAuditing,

AuditCommittee

•AuditCommitteeChairman


1998-Present


•S&JInternationalEnterprisePlc.

•B.Se.Accountancy,

AuditCommitteeChairman


Non Liste

d Com

panies

•4companies


Com

petitive Busin

ess relate

d

-None-

(DAP)3/2003fromIOD

to

Com

pany’s Busin

ess

Boar

d of

Dire

ctor

s


Nam

e / Positio

n

Age

Education

% Share

s

Fam

ily Relationship

Experiences

hold

ing

Betw

een Directo

rs

Perio

d

Positio

n

Com

pany

24

8. M

r. Am

orn Asvanunt

64

•Master’sDegreeofMBA,

-

-None-

Liste

d Liste

d com

pany


BowlingGreenStateUniversity,

1999-Present

•AuditCommittee

•I.C.C.InternationalPlc.

•AuditCommittee

Ohio,U.S.A.

2007-Present

•ChairmanofRiskManagement

•I.C.C.InternationalPlc.

•B.Se.Accountancy

Committee


2002-Present


•People’sGarmentPlc.


•AuditCommitteeChairman

(DAP)4/2003fromIOD

2002-Present

•AuditCommittee

•SahaCogen(Chonburi)Plc.

2003-Present


•ThaiMilitaryBankPlc.

2006-Present

•RiskManagementCommittee

•ThaiMilitaryBankPlc.

2005-Present


•KrungdhepSophonPlc.

2008-Present

•RiskManagementCommittee

•KrungdhepSophonPlc.

Non Liste

d Com

pany

•1company

Com

petitive Busin

ess relate

d

-None-

to Com

pany’s Busin

ess

9. M

r. Vichit Tantianunanont 66

•AssumptionCommercialCollege,

-

-None-

Liste

d com

pany


Bangkok

2011-Present


•PanAsiaFootwearPlc.

•AuditCommittee


•AuditCommittee

•ChairmanofRisk

(DAP)3/2003fromIOD

Non Liste

d Com

panies

•3companies

ManagementCommittee

Com

petitive Busin

ess relate

d

-None-

to Com

pany’s Busin

ess

10. M

r. Sorc

hote

Am

bhanwong

47

•BachelorofArtsUniversityof

0.10

-None-

Liste

d com

pany

-None-


SrinakharinwirotPrasanmit

Non Liste

d Com

pany

-None-

•Master’sdegree

Com

petitive Busin

ess relate

d

inCommunications,Design

to

Com

pany’s Busin

ess


1996-Present

•ManagingDirector

•GrandmaCommunicationsCo.,Ltd.

(DAP)85/2010fromIOD

2004-Present

•ManagingDirector

•YesCommunicationsCo.,Ltd.

2007-Present

•ManagingDirector

•BigMamaHouseCo.,Ltd.

Boar

d of

Dire

ctor

s


Nam

e / Positio

n

Age

Education

% Share

s

Fam

ily Relationship

Experiences

hold

ing

Betw

een Directo

rs

Perio

d

Positio

n

Com

pany

25

11. M

r. Arth

orn M

aeknoparat

53

•BachelorDegree

-

-None-

Liste

d com

pany

-None-

•Director

FacultyofCommunicationArts,

Non Liste

d Com

pany

-None-

•GeneralManager

MassCommunication,

Com

petitive Busin

ess relate

d

-None-


to

Com

pany’s Busin

ess


(DAP)87/2011fromIOD

12. M

rs. Chattong Tip

payakalin60

•BachelorofEconomics(Finance)

-

-None-

Liste

d com

pany

-None-


UniversityoftheThaiChamber

Non Liste

d Com

pany

-None-

•AuditCommittee

ofCommerce

Com

petitive Busin

ess relate

d

-None-

•MasterofBusinessAdministration

to

Com

pany’s Busin

ess

(Management)KasetsartUniversity

•NationalDefenceCollege


(DAP)99/2012fromIOD

13. M

r. Anupol Puwapoonpol

52

•BachelorDegreeFacultyof

-

-None-

Liste

d com

pany

-None-

•ExecutiveBusinessDirector

CommunicationArts,Majorin

Non Liste

d Com

pany

-None-

(2004-Present)

AdvertisingandPublicRelation,

Com

petitive Busin

ess relate

d

-None-


to

Com

pany’s Busin

ess

14. Dr. Som

chat Visitchaichan 43

•DoctorofPhilosophyDevelopment

-

-None-

Liste

d com

pany

-None-

•StrategicPlanningDirector

Administration,NationalInstituteof

Non Liste

d Com

pany

-None-

(2005-Present)

DevelopmentAdministration

Com

petitive Busin

ess relate

d

-None-

to Com

pany’s Busin

ess

15. M

rs. Porn

wilai Pin

vanichkul 52

•MasterofBusinessAdministration,

-

-None-

Liste

d com

pany

-None-

•AccountingManager

RamkhumhaengUniversity

Non Liste

d Com

pany

• 1company

(1998-Present)

Com

petitive Busin

ess relate

d

-None-

to Com

pany’s Busin

ess

Boar

d of

Dire

ctor

s


Nam

e / Positio

n

Age

Education

% Share

s

Fam

ily Relationship

Experiences

hold

ing

Betw

een Directo

rs

Perio

d

Positio

n

Com

pany

26

Number of Shared Held by The Directors and Executives of

Far East DDB Public Company Limited as at December 31, 2012

Name 2011 Increase/ 2012

Decrease 2012 %

Director Spouse During Total Director Spouse

the year

Number of Shared Held by Directors of Fame Line Co., Ltd. (Subsidiary)

as at December 31, 2012

1. Mr.Boonchai Chokwatana 249,300 118,500 - 367,800 4.90 249,300 11,850

2. Mr.Wasin Teyateeti 14,850 2,250 - 17,100 0.23 14,850 2,250

3. Mr.Dan Sornmani 40,000 - - 40,000 0.53 40,000 -

4. Mrs.Siriwan Vilassakdanont 3,825 - - 3,825 0.05 3,825 -

5. Mrs.Malee Leelasiriwong - 2,100 - 2,100 0.03 - 2,100

6. Mrs.Chailada Tantivejakul 271,044 - - 271,044 3.61 271,044 -

7. Mr.Khachornsakdi Vanaratseath - - - - - - -

8. Mr.Amorn Asvanunt - - - - - - -

9. Mr.Vichit Tantianunanont - - - - - - -

10.Mr.Sorchote Ambhanwong - 7,200 - 7,200 0.10 - 7,200

11.Mr.Arthorn Maeknoparat - - - - - - -

12.Mrs.Chattong Tippayakalin - - - - - - -

13.Mr.Anupol Puwapoonpol - - - - - - -

14.Mr.Somchat Visitchaichan - - - - - - -


Decrease 2012 %


the year


Decrease 2012 %


the year

Number of Shared Held by Directors of Rapp Collins (Thailand) Co., Ltd.

as at December 31, 2012

1. Mr.Wasin Teyateeti 1 - - 1 0.00 1 -

2. Mrs.Malee Leelasiriwong 1 - - 1 0.00 1 -

1. Mr.BoonchaiChokwatana 6,015 500 - 6,515 6.52 6,015 500

27

Management

Management Structure

TheCompany’smanagementstructureasofDecember31,2012consistsoftheCompany’sBoardofDirectors,

AuditCommittee,RiskManagementCommitteeandMr.ArunNgamdeeastheCompanyAdvisoryChairman.

Scope, Authorities and Duties of the Company Directors

1.Topracticedutieswithresponsibility,careandhonestinthesamewayasfiduciaryshouldbemadeinthe

samesituationwithbargainingpoweroftradewithouttheinfluenceofstatusastheCompany’sdirectors,including

tocomplywithpolicy, law,objective, theCompany’s regulations, the resolutionsof theCompany’sBoardand

shareholders’meeting.

2.ImplementanddirecttheCompany’spolicies,aswellasmonitorandsuperviseitsoperationstomaximize

economicvalue.

3.Toencouragethedevelopmentofthepolicyofcorporategovernance,ethicsandbusinesscodeofethics

inwritteninorderfortheCompanydirectors,Executivesandemployeestoobserveasguidelineintheconductof

thebusiness.

4.Toarrangeforasufficientinternalcontrolsysteminordertoensurethattransactionsareapprovedby

authorizedindividuals,reviewedandrecordedaccountingreports;and,toimplementsystemspreventing

inappropriateuseofcompanyassets.

5.Transactionswithpossibleconflictofinterestsmustbecarefullyreviewed,withadefiniteguidelinetoensure

theinterestsoftheCompanyandtheshareholders,individualswithinterestsmaynotbeinvolvedinthedecision

makingprocess.Theymustobservetherequirementsontheproperprocedureanddisclosureoftransactionswith

possibleconflictofinterests.

6.Ensuremanagement’saccountability toshareholders:preserve their rightsand interests,clearlyandfully

discloseinformation.

PERIOD OF

NAMES POSITION APPOINTED YEAR COMPANY’S

DIRECTORS (Years)

1. Mr.Boonchai Chokwatana Chairman 1970 42

2. Mr.Wasin Teyateeti ViceChairman 1974 38

3. Mr.Dan Sornmani ManagingDirector 2005 7

4. Mrs.Siriwan Vilassakdanont Director 1989 23

5. Mrs.Malee Leelasiriwong Director 2000 12

6. Mrs.Chailada Tantivejakul Director 2005 7

7. Mr.Khachornsakdi Vanaratseath IndependentDirector 2002 10

8. Mr.Amorn Asvanunt IndependentDirector 2002 10

9. Mr.Vichit Tantianunanont IndependentDirector 2002 10

10.Mr.Sorchote Ambhanwong IndependentDirector 2010 2

11.Mr.Arthorn Maeknoparat Director 2010 2

12.Mrs.Chattong Tippayakalin IndependentDirector 2011 1

Mrs.Suree Muennarintr TheCompany’sSecretary 2008

28

Committees

TheCompany’sBoardofDirectorshasextensivelyemphasizedgoodcorporategovernance,thusthecommittees

areassignedtohaveindividualdutiesandresponsibilitieswhicharecomprisedoftheAuditCommitteeandthe

RiskManagementCommitteeEachcommitteehasauthority,dutyandresponsibilityasstatedoncommittee’s

charterasfollows.

The Audit Committee

TheBoardofDirectorssetsuptheAuditCommitteetosupport itscorporategovernanceinaspectsof

processoffinancialreport,internalcontrol,auditprocess,andtheadherenceofrelatedrulesandregulations.

TheAuditCommitteeconsistsoffourcompanydirectors,whoaretheIndependentDirectors.

1. Mr.Khachornsakdi Vanaratseath ChairmanofAuditCommittee

2. Mr.Amorn Asvanunt AuditCommitteeMember

3. Mr.Vichit Tantianunanont AuditCommitteeMember

4. Mrs.Chattong Tippayakalin AuditCommitteeMember

Secretary to the Board of Audit Committee:Mrs.SureeMuennarintr

Names The Board of Directors’ Meeting

1. Mr.Boonchai Chokwatana 9/9

2. Mr.Wasin Teyateeti 6/9

3. Mr.Dan Sornmani 7/9

4. Mrs.Siriwan Vilassakdanont 7/9

5. Mrs.Malee Leelasiriwong 9/9

6. Mrs.Chailada Tantivejakul 8/9

7. Mr.Khachornsakdi Vanaratseath 8/9

8. Mr.Amorn Asvanunt 6/9

9. Mr.Vichit Tantianunanont 8/9

10.Mr.Sorchote Ambhanwong 8/9

11.Mr.Arthorn Maeknoparat 8/9

12.Mrs.Chattong Tippayakalin 9/9

7.Approvethefinancialreporthavingbeenauditedand/orreviewedbytheauditorandtheauditcommittee.

8.Toappoint,revokeandauthorizeconsultantstotheCompany’sExecutiveBoards’Advisory,toCommittees

and/ortootherindividualstocomply.

9.TopreparetheReportontheCompanyBoardofDirectors’ResponsibilitiesforFinancialStatementsand

disclosureitintheannualreportoftheCompany(56-2Form)andtheannualdisclosurereport(56-1Form).

10.Toengageinanyotheraction,whichisbeyondtheauthorityoftheExecutiveBoard,orwhichtheBoard

ofDirectorsdeemsappropriate.

Intheyear2012,theBoardofDirectorsheldninemeetings;theattendanceofeachBoardmemberonsuch

meetingswasasfollows:

29

Duties and Responsibilities of the Company Audit Committee

1. ReviewthattheCompany’sfinancialstatementsarecorrectandsufficient;

2. ReviewthattheCompany’sinternalcontrolsystemandinternalauditsystemaresufficientandeffective,

reviewthesufficientindependenceoftheOfficeofInternalAudit,andprovideopinionsfortheappointment,transfer,

andpromotionofheadsoftheOfficeofInternalAuditorotherofficeswithresponsibilitiesforinternalauditactivities;

3. ReviewthattheCompany’soperationconformstolawsonsecuritiesandexchange,requirementsofthe

StockExchangeofThailandandanyotherlawsrelatingtotheCompany’sbusiness;

4. Review,select,nominateforapprovalforthepersonswithindependenceofperformingthedutiesofexternal

auditorsfortheCompany,proposetheremunerationofsuchexternalauditors,andjointlyattendthemeetingwith

theexternalauditors,atleastonceayear,withoutthepresenceoftheCompany’smanagement;

5. Reviewanyconnectedtransactionortransactionswithpotentialconflictofinteresttobeincompliancewith

lawsandrequirementsoftheStockExchangeofThailandinordertoensurethatsuchtransactionsarereasonable

andprovidethebestbenefitsfortheCompany;

6. PreparetheAuditCommitteereportstobedisclosedintheCompany’sannualreport;suchreportsmust

besignedbytheChairmanoftheAuditCommitteeanditmustcontain,atleast,somesignificantinformationas

describedbelow:

(a) opinionsabouttheaccuracy,correctnessandreliabilityoffinancialstatementsandfinancialreportsofthe

Company;

(b)opinionsaboutthesufficiencyofinternalcontrolsystemoftheCompany;

(c) opinionsaboutthecompliancewithlawsonsecuritiesandexchange,requirementsoftheStock

ExchangeofThailandandanyotherlawsrelatingtotheCompany’sbusiness;

(d)opinionsabouttheappropriatenessofexternalauditors;

(e) opinionsabouttransactionswithpotentialconflictofinterest;

(f) numberofmeetingstobeconvenedbytheAuditCommitteeandmeetingattendanceofeachAudit

Committeemember;

(g)opinionsorgeneralfindingsobtainedbyperformingitsdutiesinaccordancewiththeAuditCommittee

Charter;

(h) opinionsaboutothermattersthatshouldbenotifiedtogeneralshareholdersandinvestorsunderthe

scopeofdutiesandresponsibilitiesassignedbytheBoardofDirectors.

7. Inperforming theduties as theAuditCommittee, if discoveringor suspectingof either of the following

transactionsoracts,whichmaygivesignificanteffectstothefinancialstatusandoperatingresultsoftheCompany,

theAuditCommitteemustreportittotheBoardofDirectorsforimprovementswithinthereasonableperioddetermined

bytheAuditCommittee:

(a) transactionwithpotentialconflictofinterest;

(b) fraudorirregularityorsignificantdefectintheinternalcontrolsystem;or

(c) violationoflawsonsecuritiesandexchange,requirementsoftheStockExchangeofThailandandany

otherlawsrelatingtotheCompany’sbusiness.

IftheBoardormanagementoftheCompanyfailstomakeremedieswithintheestablishedperiod,one

oftheAuditCommitteemembersmayreportsuchtransactionoracttotheOfficeoftheSecuritiesand

ExchangeCommissionortheStockExchangeofThailand.

8. SupportandmonitortoensurethattheCompanyacquirestheefficientriskmanagementsystem.

30

Participation in the Audit Committee meetings in 2012

In2012,theAuditCommitteeheld4meetingsandtheparticipationofeachcommitteememberissummarizedbelow.

The Risk Management Committee

TheBoardofDirectorssetsuptheRiskManagementCommitteetosupportitscorporategovernanceinaspect

ofmanagementof riskof theCompany tobemoreefficientlyperformed.TheRiskManagementCommittee

comprises7membersasfollowingnames;

1. Mr.Vichit Tantianunanont ChairmanoftheRiskManagementCommittee

2. Mr.Dan Sornmani Member

3. Mr.Wichar Ldallitsakool Member

4. Mrs.Malee Leelasiriwong Member

5. Mrs.Chailada Tantivejakul Member

6. Mrs.Suree Muennarintr Member

7. MissWaraporn Kulsawatpakdee Member

Secretary to the Risk Management Committee:MissSujittraMakanit

Duties and Responsibilities of the Risk Management Committee

1. Toformulatetheriskmanagementpoliciesandgoals,planandorganizetheriskmanagementsystemofthe

companytoallowthesystemcontinuityandclarityforfurthermanaginganysignificantrisks,andreportsuch

riskstotheBoardofDirectorsandtheAuditCommittee.

2. Tosupportandencouragethecooperationforriskmanagementatalllevelsintheorganization.

3. Toensurethatthecompany’srisksarecontrolledappropriatelyandefficientlybyplacingemphasisontherisk

warningsystemandanyotherabnormaltransactions.

4. Developtheriskmanagementsystemintheorganizationtoensurethatitisefficientandconsistent.

Names Qualifications Attendance of 4 meetings

1. Mr.Khachornsakdi Vanaratseath Accounting 4/4

2. Mr.Amorn Asvanunt Accounting 3/4

3. Mr.Vichit Tantianunanont ConsumerProducts 3/4

4. Mrs.Chattong Tippayakalin Administration 4/4

9. ImproveandamendtheAuditCommitteeCharter,andproposesuchamendedcharterfortheBoardofDirectors’

approval;

10.PerformotherfunctionsassignedbytheBoardofDirectorsundertheapprovaloftheAuditCommitteeby

virtueofitsauthoritystatedintheArticlesofincorporationoftheCompanyandotherrelatedlaws.

TheperiodofserviceforAuditCommitteeMemberis1year.AnAuditCommitteeMemberwhoretiresfromoffice

duetotheexpirationoftermofservicemaybere-elected.IncaseofvacancyintheAuditCommitteeforreasons

otherthanbytheexpirationoftermofservice.TheBoardofDirectorsshallelectafullyqualifiedpersontobea

substitutememberandshallremaininofficeonlyforthetermleftforthememberwhomheorshereplaces.

31

Participation in the Risk Management Committee meetings in 2012

In2012,theRiskManagementCommitteeheld3meetingsandtheparticipationofeachcommitteememberis

summarizedbelow.

Selection of the Company’s Directors

TheBoardofDirectorsscreensqualifiedindividualsfornominationtofillvacantpostsforsubsequentproposal

totheshareholdersmeeting,withtheexceptionofthecasewherethepostbecameregulations.Inthecasewhere

thepostisthatofanindependentdirector,thenominatedindividualmustpossessallqualificationsrequiredbythe

EquityMarketCommittee.

Itisalsoimportanttonotethatminorshareholdersalsohavetherighttonominateindividualstobeelected

asdirectors.Attheshareholdersannualgeneralmeetinginaccordancewiththeprescribedcriteriawhichcanbe

viewedontheCompanywebsiteatwww.fareastddb.com

Composition and Election

According to theArticles of Association,Chapter 3 ‘TheBoard ofDirectors’,No.18 andCharter, the

shareholders meeting determines the number of desired directors but not fewer than five. The individuals

to be appointed as directors must not have prohibited characteristics as specified by the law or company

regulations, ormust not be described as inappropriate or untrustworthy tomanage a business the shares of

whichareheldbythepublic,asperregulationsspecifiedbytheSecuritiesandExchangeCommittee.Atleast

half of all directorsmust reside in theKingdomof Thailand. The number of independent directors andAudit

CommitteemustbeinaccordancewiththeannouncementoftheCapitalMarketSupervisoryBoard.

Directors with authority to sign on behalf of the Company

Thenumberofdirectorswhichhasthepowertosignonbehalfofthecompanyis

Group A. Mr.BoonchaiChokwatana,Mr.WasinTeyateeti,Mr.DanSornmani,Mrs.ChailadaTantivejakul.

Group B.Mrs.MaleeLeelasiriwong,Mr.ArthornMaeknoparat,Mrs.SiriwanVilassakdanont

anytwoofGroupA.cansignwiththeCompany’ssealoroneofGroupA.signwithotheroneofGroupB.

withtheCompany’sseal.

TheBoardofDirectorsmaydesignatethenamesofthedirectorswhohavethepowertoaffixtheirsignatures

togetherwiththesealoftheCompanytobebindingontheCompany.

Names Qualifications Attendance

of 4 meetings

1. Mr.Vichit Tantianunanont ChairmanoftheRiskManagementCommittee 4/4

2. Mr.Dan Sornmani Member 1/4

3. Mr.Wichar Ldallitsakool Member 4/4

4. Mrs.Malee Leelasiriwong Member 4/4

5. Mrs.Chailada Tantivejakul Member 4/4

6. Mrs.Suree Muennarintr Member 4/4

7. MissWarapornKulsawatpakdee Member 2/4

5. ToimproveandamendtheRiskManagementCommitteeCharterandproposeittotheBoardofDirectorsfor

approval.

6. ToengageinotheractionsasassignedbytheBoardofDirectors.

32

Election of Directors through Shareholders’ Meeting and Rights of Minority Shareholders.

Rights of Minority Shareholders

Shareholders are allowed to propose name list of qualified nominees to the Shareholders’ Meeting. The

Companyoffersanopportunityandright toShareholders toproposenameofpersontobeselectedasthe

Company’sDirectorattheShareholders’MeetingsinceDecember24,2011untilJanuary2,2012.Thisrightwas

announcedonStockExchangeofThailand’swebsitewww.set.or.thandinvitedallShareholdersontheCompany’s

websitewww.fareastddb.comwithdefinitionofShareholders’qualification,explanationofrulesandproceduresof

BoardofDirectors’consideration.

Directorial Election Procedure

AccordingtotheArticleofAssociationChapter3,‘TheBoardofDirectors’No.20,theshareholdersmeetingis

toelectdirectorsinaccordancewiththefollowingcriteriaandprocedure:

(1)Ashareholdershallhaveonevoteforoneshare.

(2)Eachshareholdermustexerciseallofthevotesheorshehasunder1,toelectoneorseveralpersonsto

beadirectorordirectorsandmustnotallothisorhervotestoanypersoninanynumber.

(3)Thepersonshavingthehighestnumberofvotestothelowernumberofvotesinordershallbeelectedas

thedirectorsequaltothenumberofdirectorstobeelectedbytheShareholders’Meetinginsuchelection.

Incasewherethenumberofvotesforthecandidatesindescendingorderareequalwhichwouldotherwise

causethenumberofdirectorstobeelectedbytheShareholders’Meetingtobeexceededinsuchelection,

theChairmanshallhaveacastingvote.

Directorial Term of Service

(A) Term Completion Retirement

InaccordancewithArticlesofAssociationChapter3‘TheBoardofDirectors’No.21andtheCompany

Charter,one-thirdofthedirectorshavetoretirefromthepostateachannualgeneralmeeting.Inthecase

wherethenumberofdirectorscannotbedividedbythree,thenumberofdirectorstoretireistobeclosest

toone-third.Duringthefirsttwoyearsafterthecompany’sregistration,alotterydrawneedstobecast

amongcompanydirectorsto identifytheone-thirddirectorswhohavetoretireateachannualgeneral

meeting.Afterthefirsttwoyears,thelotterydrawisnolongerneededasthelongest-servingdirectorsare

askedtoretire.Directorswhoretirefromthepostmaybere-elected.

(B) Non-Term Completion Retirement

1. InaccordancewithArticlesofAssociationChapter3‘TheBoardofDirectors’No.22andCharter,directors

aretoberetiredfromthepost(inacaseotherthancompletionofterm)underthefollowingcircumstances:

1.1 Death

1.2 Resignation

1.3 Lackofrequiredqualificationsorhavingaprohibitedcharacterasspecifiedbythelaworcompany

regulations

1.4 Beingdescribedasinappropriateoruntrustworthytomanageabusinessthesharesofwhichare

heldbythepublic,asperregulationsspecifiedbytheSecuritiesandExchangeCommission

1.5 Removalfromofficeattheresolutionoftheshareholdersmeeting

1.6 Removalbycourtorder

Onceapostofdirectorbecomesvacantduetoareasonotherthancompletionofterm,andthattheremaining

termislongerthantwomonths,theBoardofDirectorsistoselectaqualifiedindividualwhoisfreeofanyprohibited

33

characteristicsasareplacementatthenextBoardofDirectorsmeeting.Thereplacementmemberistoservefor

onlytheremainingtermofthedirectorwhomhe/shereplaces.

2. AccordingtoArticlesofAssociationChapter3‘TheBoardofDirectors’No.25theshareholdersmeetingmay

passaresolutionremovinganydirectorprematurelywithatleastthree-fourthsofthevotesofpresentandeligible

shareholderswhohaveintotalthenumberofsharesofatleasthalfofthesharesheldbypresentandeligibleshareholders.

TheCompanyhasnotfixedthemaximumamountofdirectortermaswebelievethattheabilitytomanage

businessandtheexpertiseofeachdirectorarenotdependentupontheirage.Directorscanremaininofficefor

aslongastheyarecommittedtotheirdutiesascompanydirectorsandtrustedbytheBoardofDirectorsandthe

shareholders.Ultimately,itistheauthorityofshareholderstoelectindividualsasdirectorstoestablishpoliciesand

actontheirbehalf.

Directors’ Ratio on behalf of Shareholders’ Representative

-None–

Management Remuneration for the year 2012

RemunerationfortheBoardofDirectors:Directors’compensation Baht 3,550,000.00

Directors’meetingallowance Baht 714,000.00

AuditCommitteeMeetingallowance Baht 210,000.00

RiskManagementMeetingallowance Baht 61,000.00

Totalling Baht 4,535,000.00

Remunerationpaymentto9ExecutiveBoardofDirectorsandExecutivesisequaltoBaht22,363,297.00for

theyear2012,whichisintheformofsalariesandbonus.

1. Mr.Boonchai Chokwatana 500,000.00 69,000.00

2. Mr.Wasin Teyateeti 300,000.00 48,000.00

3. Mr.Dan Sornmani 450,000.00 53,000.00 3,000.00

4. Mrs.Siriwan Vilassakdanont 150,000.00 56,000.00

5. Mrs.Malee Leelasiriwong 300,000.00 69,000.00 9,000.00

6. Mrs.Chailada Tantivejakul 300,000.00 61,000.00 9,000.00

7. Mr.KhachornsakdiVanaratseath 300,000.00 61,000.00 60,000.00

8. Mr.Amorn Asvanunt 300,000.00 45,000.00 45,000.00

9. Mr.Vichit Tantianunanont 300,000.00 61,000.00 45,000.00 16,000.00

10.Mr.Sorchote Ambhanwong 150,000.00 61,000.00

11.Mr.Arthorn Maeknoparat 300,000.00 61,000.00

12.Mrs.Chattong Tippayakalin 200,000.00 69,000.00 60,000.00

Mrs.Suree Muennarintr 9,000.00

Mr.Wichar Ldallitsakul 9,000.00

MissWaraporn Kulsawatpakdee 6,000.00

Total 3,550,000.00 714,000.00 210,000.00 61,000.00

Audit Committee Risk

Names Directors’ Directors’ meeting Meeting Management

compensation allowance allowance Meeting allowance

(Baht) (Baht) (Baht) (Baht)

34

GOOD CORPORATE GOVERNANCE

OnemissionoftheBoardofDirectorsistoimplementagoodcorporategovernancesystemwhichensures

transparency, honesty, accountability, competitiveness, fairness to all relevant parties,with consideration to all

stakeholdersaswellasaddedvalueforshareholders.Tothisend,weobservethegoodcorporategovernance

principle as promoted by both the Stock Exchange of Thailand and by the sufficiency economy philosophy,

whichteachesustofeelhappywithwhatwehave,tobereasonable,andtobecareful.Ouroperationplansare

developedandexecutedwithexpertiseandgreatcaution.And,most importantly,alexecutivesandemployees

areencouragedtobehonest,dedicated,patient,carefulandwilingtoshare.Thesemeasureshavepositionedus

very wel to accommodate any economic, political, cultural and social change, and, to achieve balanced and

sustainableresults.

OurgoodcorporategovernanceprinciplewasapprovedbytheBoardofDirectorsonNovember14th,2002.

ItcomprisestheCorporateGovernancePolicy,theBusinessEthicsandtheEmployeeCodeofConduct.Thisis

distributedtocompanydirectors,executivesandemployees,aswelaspublishedontheCompany’swebsiteat

www.fareastddb.comfortheuniformedobservanceintheirdischargeofdutyandconductofbusiness.TheCompany

hasreviewedthesuitabilityoftheGoodCorporateGovernancePrincipleonanannualbasisandfoundittobe

fittingforthecurrentcircumstances.

TheBoardofDirectors,executivesandemployeesofalllevelsoftheCompanyvaluethesignificanceofthe

observanceoftheGoodCorporateGovernancePrinciple,whichisconstantlyreviewedandimproved.Asaresult,

intheyear2012,wehavebeengivenpositiveratingsinthefolowingareas:

•“Excelent”ratingforthe2012evaluationofcorporategovernanceoflistedcompanies.

•“Outstanding+RoleModel”ratingforthe2012evaluationofannualgeneralmeetingofshareholdersquality.

TheCompanypracticesalongwithgoodcorporategovernance’sprincipleforthelistedcompanieswiththeStock

ExchangeofThailandaccordingtothefifthcoreprincipleasfollows:

1. Rights of The Shareholders

TheBoardofDirectorsappreciatesthesignificanceofshareholdersandrespectstheirrightasownersofthe

Company.Inadditiontotherighttovoteatshareholdersmeetings,theGoodCorporateGovernancePrincipleis

designedtoofferprotectionfortheshareholderrights;toencourageshareholderstoexercisetheirrights;and,to

seetoitthatallshareholdersareequalyandfairlyentitledtotheirbasicrightsasdefinedintheCompanyRegulation

andtheBusinessEthics.Basicrightsareasfolows:

• Righttopurchase,sellortransfersharesastheowner

• Righttothesharingofprofit

• RighttoreceiveadequatenewsandinformationabouttheCompany

• Righttoparticipateinshareholdersmeetingsinordertoexercisetherighttoopineandmakedecisions

throughtheirvotesontheelectionofcompanydirectors,determinationofremunerationforcompanydirectors,

appointmentofauditorsandapprovalofmatterswithinfluencesontheCompany;aswellastherighttobepaid

dividendsandtherighttoopineandinquireatshareholdersmeetings

Inadditiontothebasicrights,theBoardofDirectorstakesintoaccountthestatutoryrightsofshareholdersand

engages;ensuresthattheirrightsarenotviolatedorsubjugated;and,facilitatestheexerciseoftheirrightsasfollows:

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1.1 Right to be informed :Allshareholdershaveanequalrighttobeinformed.Therefore, informationis

madeavailabletoshareholdersinEnglishandinThaiviatheStockExchangeofThailandandourwebsiteat

www.fareastddb.comThis is toensure that theshareholdersarewell informedofmatterssuchasoperational

results, related transactions,significantsalesandpurchasesofassets,namesof tenmajorshareholdersasof

registrationbookclosingdateforthepurposeofanannualgeneralmeeting,shareholdersmeetingminutedwithin

14daysafterthemeeting,andotherinformationnecessaryfortheirdecisionmaking.

1.2 Right to attend shareholders meetings :TheCompanyarrangesfortheannualgeneralmeetingofshareholders

everyyearwithinfourmonthsfromthelastdayofanaccountingyearoftheCompany.Thismeetingtakesplace

onadateandtimeandatalocationwhichalloweaseofattendancebytheshareholders.

Intheyear2012,theCompanyhashadthe18thannualgeneralmeetingofshareholdersonApril27th,2012

attheConferenceRoomofFarEastDDBPlc.,465/1-467SiAyutthayaRoad,Ratchathewi,Bangkok10400.This

venueisusedeveryyeartosavetheshareholdersfromconfusion.Amapisenclosedwiththemeetingnotice

withagendas.Additionally,anannualgeneralshareholdersmeetingnoticewithagendasinThaiandEnglishwas

published via the information system of the Stock Exchange of Thailand and the Company’s web site at

www.fareastddb.comonMarch23rd,2012inordertoinformtheshareholdersfiveweeksinadvance.

Before the meeting day

1.TheCompanygivesshareholderstheopportunitytobeinvolvedinthemeetings.Minorshareholderscan

submitmattersforinclusionasmeetingagendasand/ornominateindividualsfortheCompanydirectorelection.

Forthe2012annualgeneralmeetingofshareholders,theCompanyhasallowedshareholderstosubmitmatters

forinclusionasmeetingagendasand/ornominateindividualsfortheCompanydirectorelectionfromDecember

24th2011toJanuary23

rd2012.ThiswasannouncedinThaiandEnglishviatheinformationsystemoftheStock

ExchangeofThailandandontheCompany’swebsiteatwww.fareastddb.comNevertheless,noshareholders

hascomeforwardwithanysubmissionornomination.

2. TheCompany publishes themeeting notice and supporting documents on theCompany’sweb site at

www.fareastddb.compriortotheactualdeliveryofsuchinformationinprintedforminThaiandEnglishtothe

shareholders.ThiswascarriedoutonMarch23rd,2012ormorethan30daysbeforethemeetingdateinorderto

allowThaiandforeignshareholderstoaccessinformationmorequicklyandconveniently,aswellastohavemore

timetoreviewpertinentinformation.

3.TheCompanydeliversmeetingnoticewithagendas,facts,rationalesandopinionsofBoardofDirectorson

eachagendaonApril17th,2012toallowshareholderstimetoreviewthematters.Thiswasdeliveredtogether

withsupportingdocumentswhichincludetheannualreport,financialstatements,theprofilesofcompanydirector

candidates,definitionofindependentdirectors,profileofAuditCommitteemembersproposedbytheCompanyas

proxies,maptothemeetingvenue,descriptionofdocumentsandidentificationevidencetobeproducedbythe

shareholdersforadmittanceintothemeeting,thesectionofCompanyRegulationwhichconcernsshareholders

meetings;and,the“B”proxyform.announcementswaspublishedinanewspapersevendayspriortothemeeting

forthreeconsecutivedaysformApril19th,2012.

ForeighshareholdersweredeliveredonEnglishtranslationtogetherwiththeThaiversionofmeetingnoticeand

supportingdocuments.

Further,ifwaspossibleforshareholderstodownloadeither“A”,“B”or“C”proxyformoftheirchoice.They

haveallbeenpreparedinaccordancewiththerelevantannouncementoftheMinistryofCommerce.

36

On the meeting day

1.TheBoardofDirectorsappreciates thesignificanceof shareholdersmeetingsand their responsibility to

theshareholders.Itisthedutyofdirectorstoattendthemeetingsandoffershareholderstheopportunitytoask

questionspertainingtotheCompany.

Forthe18thannualgeneralmeetingofshareholdersonApril27

th,2012,eleventdirectorswerepresentatthe

meeting.TheChairmanoftheBoardofdirectorsandthechairmenofsubcommittees,executivedirectors,accounting

manager and theFinanceManagerwerepresent. Themeetingwasalsoattendedby theCompany’s auditors

whoservedaswitnessestothevotecounting.Thenamesofdirectors,executivesandauditorspresentatthe

shareholdersmeetingwererecorededinthemeetingminutewhichissubsequentlypublishedontheCompany’s

websiteatwww.fareastddb.com

2.TheCompanypracticesandequal treatmentofallshareholders.Uponthemeetingcommencement, the

Presidentannouncesthenumberandtheratioofattendingshareholders.TheChairmanoftheBoardofDirectors

declares commencement of the meeting, introduces company directors, members of the subcommittees,

executivesandauditorsthenaskstheCompanysecretarytoexplainallrulesincludingthoseconcerningvoting

andthecountingofthevotesoftheshareholdersoneachagendainaccordancewiththeCompanyRegulation.

Attendingshareholdersaregiventhechancetoinquire,opineandmakesuggestionsonallagendas.Questions

areansweredclearlyandprecisely.Forvotes,againstvotesandabstentionsareaccountedforusingthebarcode

system.Ameetingminuteisclearly,correctlyandthoroughlyproduced.

3.At the18thannualgeneralmeetingofshareholdersonApril27

th,2012,abarcodesystemwasused for

thepurposeofregistrationandvotingtofacilitateallattendingshareholders.Thebarcodevotecountingoneach

agendawassitnessedbytheauditorstoguaranteetransparency.Additionally,itwaspossibleforallshareholders

andproxiestoseethevotingresults(forvotes,againstvotesandabstentions)onthescreenatthesametime.

Votingoneachagendawascarriedoutopenly.Avotingcardwasgiventotheshareholdersandtheproxies

foreachagenda.Thecardwascollectedonlyfromthosewithagainstvoteand/orabstention,withtheexception

oftheindividualcompanydirectorelectionagendawherethecardwascollectedfromallshareholdersandproxies.

Onlyagainstvotesand/orabstentionswerecountedandsubtracted from thenumberofall votespresent.All

remainingvotesweredeemedas forvoteson theagenda. Shareholders’votesoneachagendaof the2012

meetingcanbeviewedfromthe18thannualgeneralmeetingofshareholdersaspublishedontheCompany’swebsite.

4.TheCompanyconductsthemeetingintheorderoftheagendas,withoutanyswitchingoftheagendasor

inclusionofadditionalagendasotherthanthosespecifiedinthemeetingnotice.Significant informationisnot

changedwithoutpriornoticetotheshareholders

5.TheCompanyrecoredsavideooftheshareholdersmeetingthroughoutthedurationofit.Shareholderscan

asktoseeitwiththeCompanysecretary.ThevideoispublishedontheCompany’swebsiteaswell.

6.Importantagendasatshareholdersmeetings.

(1)Dividendpayment:TheCompanyproposesdetailspertainingtoprofitallocationanddividendpayment

ratetogetherwithrationalesandsupporting information inaccordancewiththedividendpaymentpolicyof the

Company.Comparisonsaremadebetweenthepayingdividendandthepolicy,and,betweenthepayingdividendof

thecurrentyearandthepaiddividendofthepreviousyear.Thedatesofdividendentitlementandbook-closingdate.

(2)Directorialelection:TheCompanygivesshareholderstherightstovoteontheelectionofindividuals

company directors; and, to nominate individuals for the Company director election. Nominated candidates for

independentdirectorpositionmustpossessthequalificationsasrequiredbytheCompanyandtheannouncement

37

oftheEquityMarketCommittee.Shareholdersareprovidedpreliminaryinformationonthecandidates,thenumber

ofcompaniesforwhichtheyserveascompanydirector,positionheldinotherlistedcompaniesorcompetitive/

connectedbusinesses,and,criteriaandprocedurefortheselection,typeofdirector.

Inthecasewhereacurrentcompanydirectorisnominated,theinformationonhis/hermeetingattendance

inthepreviousyearandthenumberoftemrs/yearshe/shehasheldadirectorialpositionareincludedaswell.

(3)Directors’Remuneration: Although theCompany has not appointed a remuneration committee. The

Companysuggeststheamountandtheformofremunerationtotheshareholdersmeetingfortheirapprovalon

anannualbasis.ThisisdeterminedbytheNominationandRemunerationCommitteeandbasedonoperational

outcome,performance,remunerationlimitapprovedbytheshareholdersmeeting,remunerationpaidintheprevious

year,thebenchmarkofothercompaniesinthesamesector,and,thedutiesandtheresponsibilityoftheCompany

directors. Policy and criteria for the determination of remuneration for each position of company director is

presented.Asummaryisprovidedonapprovedremunerationlimit,theactualamountpaid,theformofpayment

andtheexactamountpaidtoindividualcompanydirectorsandmembersoftheAuditCommitteeandtheRick

Management Committee. This can be viewed from the annual data sheet (56-1 form) and the annual report

(56-2),underthe“DirectorsRemuneration”section.

(4)Appointmentofauditorsanddeterminationofauditor’sfee:TheCompanyproposestheappointmentof

auditorsandanauditoffice,independence,togetherwiththeiroperationaloutcomeandthenumberofyearsthey

havebeeninserviceorthereasonforthechangingofauditors.Auditfeeofthecurrentyeariscomparedwith

thepreviousyear.Thesameistrueforotherservicefeesincurredfromtheuseofservicesprovidedbytheaudit

officewithwhichtheauditorsareassociated.Comparisonismadewiththeamountofworkandtheauditfeeof

otherlistedcompaniesofthesamesizeaswell.AuditorsandtheauditofficearescreenedbytheAuditCommittee.

After the meeting day

TheCompanyproducesdetailedminutesforthegeneralmeetingofshareholdersinThaiandEnglishwithclear,

completeandfactualinformationforeachagenda.Thenamesofcompanydirectors,membersofthesubcommittee,

executivedirectors,topmanagementfromtheaccountingandfinancedepartmentand,auditorswhoarepresentat

themeetingarelisted.Proceduresforvotingandvotecounting,aswellasthenumberofforvotes,againstvotes

andabstentionsarerecorded.Thesameistrueforinquiriesandtheresponsestothem.Suchameetingminute

isreviewedbytheLegalDepartmentandtheChairmanoftheBoardofDirectorsbeforeexecutionofsignature

inthecapacityasthechairmanofthemeeting.TheminuteissubsequentlydeliveredtotheStockExchangeof

ThailandandtheOfficeofSecuritiesandExchangeCommission,aswellaspublishedontheCompany’swebsite

atwww.fareastddb.cominThaiandEnglishwithinfourteendaysfromthedayoftheshareholdersmeeting.This

givesshareholderstheopportunitytoreviewinformationwithouthavingtowaituntilthenextmeeting.Acopyis

submittedtotheBusinessDevelopmentDepartmentandtheMinistryofCommercewithinthestatutorilyspecified

timeframeaswell.

38

2. Treating Shareholders with Equality and Fairness

TheCompanyplacesgreat importanceontreatingshareholderswithequalityandfairness,andthis for

treatmentcanbedetailedasfollows.

2.1 Shareholders meetings

1.Votesaredeterminedbythenumberofsharesheldbytheshareholder.Onesharerepresentsonevote.

2.Fortheshareholdersmeetings,minorshareholdercansubmitmattersforinclusionasmeetingagendas

and/ornominate individuals for theCompanydirector electionprior to themeeting inaccordancewith the

establishedcriteria,channelsandtimeframe.ThisisannouncedinThaiandEnglishviathechannelsofthe

StockExchangeofThailandandontheCompany’swebsite.

3.Forthe18thannualgeneralmeetingofshareholdersonApril27

th,2012theCompanyhasdelivereda

noticewithsupportingdocumentsonApril17th,2012ortendayspriortothemeeting.Itincludedagendas,the

annualreport,financialstatements,the“B”proxyform,stepsoftheproxyprocess,profileofcompanydirector

candidatesandamaptothemeetingvenue.ThisisthesamesetofinformationpublishedontheCompany’s

websitemorethan30dayspriortothemeetinginordertoallowshareholderssufficienttimetoreviewthe

information.

ForeignshareholdersweredeliveredonEnglishtranslationtogetherwiththeThaiversionofthemeeting

noticeandsupportingdocuments.

4.TheCompanyencouragesallshareholderstobeinvolvedinthereviewandthevotingonimportant

mattersoftheCompanyinaccordancewiththemeetingagendas.Shareholderswhoarenotabletoparticipate

in themeeting on their ownmay assign another person or amember of the Audit Committeewho is an

independentdirectortoattendthemeetingontheirbehalf.Names,addressesandinterestsofallfourmembers

oftheAuditCommitteearedeclaredinthemeetingnotice.Shareholderscanviewtheinformationonthefour

membersoftheAuditCommitteeintheannualreport,enclosedwiththemeetingnotice,aswell.

Shareholderswhoarenotabletoparticipateinthemeetingontheirownmayusethe“B”proxyform,

enclosedwith themeetingnotice.Thisallowsshareholders tobe involved in thevoting.Documentsand

identificationevidencerequiredfortheproxyprocessaredescribed.Theproxyprocessisnotassociatedwith

anyinconveniencingcriteria.Alternatively,shareholderscandownloadtheproxyform,preparedinaccordance

withtherelevantannouncementoftheBusinessDevelopmentDepartment,theMinistryofCommerce,fromthe

Company’swebsiteatwww.fareastddb.comThethreeversionsavailableare“A”,“B”and“C”proxyforms.

(ThelatterisusedonlybyforeigninvestorswhohaveappointedacustodianinThailandasadepositoryand

manageroftheirshares.)

The18GeneralMeetingofShareholdersfortheyear2012washeldonApril27th,2012.

Shareholders Shares %

Total number of shareholders as per the registration 324 7,500,000 100.00

Attending Shareholders 65 5,757,704 76.77

Shareholders attending the meeting 21 1,535,819 20.48

In person Proxy attendance 44 4,221,885 56.29

-Auditcommitteemembers - - -

-Otherindividuals 44 4,221,885 56.29

39

5.TheCompanyprovidesdutystampstotheshareholderatnocostfortheaffixationontheproxyform.

6.TheCompany fully facilitatesshareholders in theirexerciseof right toparticipate inshareholders

meetingsandtovote.Shareholderscanregisterforthemeetingatleasttwohoursinadvance.Shareholders

joiningthemeetingafterithasbegunaregiventherighttovoteonagendaswhichhaveyettobereviewed.They

areaccountedasapartofthequorumfromtheagendaonwhichtheyhavevoted.

Sufficient personnel and technology are provided to facilitatemeeting registration and voting on each

agenda.Abarcodesystemisusedforconvenience,timelinessandtransparency.

2.2 Insider information usage control

MeasuresrelatingtotheuseofinsiderinformationarecoveredintheCompany’scodeofbusinessethics.

Insiderinformationusagecontrolisaresponsibilityofdirectors,executivesandstafftowardstheCompanyand

shareholders.Theymustbeindividualsofintegrity,accountabilityandmoralconsciousness.Undernocircumstance

shouldtheyexploittheirauthorityforthebenefitofthemselvesand/orothers.Allrelevantemployeesmustprotect

theinterestsandtheassetsoftheCompany.TheymustnotuseinformationorassetsoftheCompanyforthe

benefit of themselves and or others. All relevant employeesmust protect the interests and the assets of the

Company.TheymustnotuseinformationorassetsoftheCompanyforthebenefitofthemselvesand/orothers

norshouldtheyengageinanyactionwhichassistsanyindividualinbusinessthatcompleteswiththeCompany.

Copiesofthesemeasureshavebeendistributedtoalldirectors,executivesandstafffortheirobservance.They

arealsoavailableontheCompany’swebsitewww.fareastddb.comAsaguidelineforthemtoconductthemselves

astheyfunctionintheircapacity.

ThemostseriousdisciplinarypunishmentestablishedintheCompanyregulationistheterminationof

employment.Alldirectors,executivesandstaffareawareofthisandactaccordingly.

2.3 Supervision of the Company’s security trading transaction and report of stakeholding

Wehaveinplaceameasureforthemonitoringofoursecuritytradingtransactions.Ourcodeofethics

hasprescribedaprohibitionfordirectors,executivesandstaffinpossessionofinsiderinformationfromsellingor

purchasingcompanysharewithinonemonthbeforedisclosingthefinancialstatementstothepublic.Everyquarter,

theCompanysecretarysendsaletterremindingthistodirectors,executivesandrelevantindividuals.Additionally,

directorsandexecutives,aswellas,theirspousesandunder–agedchildrenarerequiredtoreporttheirshareholding.

AnytransactionmustbereportedtotheSecuritiesandExchangeCommission,withacopysenttotheCompany

secretaryforsubsequentnotificationoftheBoardofDirectorsatthenextmeeting.Onemandatoryagendatobe

presentatallBoardofDirectorsmeetingsinvolvestheholdingofcompanysharesbydirectorsandexecutives.

Ashreholdingreportfromisenclosedwiththeinvitationtothemeeting.Directorsandexecutivesarewellaware

thatitistheirdutytocomply.

Intheyear2012directorsandexecutiveshavecompliedstrictlywiththepolicy.Therehasbeenno

incidenceoftradingduringtheprohibitedperiod.

Further,wehaveameasureforthemonitoringthevestedofinterestofdirectorsandexecutiveswhoare

requiredtoreporttotheChairmanoftheBoardofDirectorsandtheChairmanoftheBoardofDirectorsandthe

ChairmanoftheAuditCommittee,thevestedofinterestofthemselvesandindividualsrelatedtothemusingthe

providedfromanychangemustbereportedaswellwithinonemonth.

Alldirectorsandexecutiveshavecompliedstrictlywiththecriteriain2012.

40

2.4 Conflict of Inerests

Conflictsofinterestsarehandledcautiouslyandrationally,withthegreatestbenefittotheCompanyasthe

keyconcern.Determinationofpricesisincompliancewithnormalfairtradeconditions,justlikedoingbusinesswith

anoutsider.MeasureshavebeenimplementedtoensuretransparencyandcompliancewiththecriteriaoftheStock

ExchangeofThailand.ThisisapartofgoodcorporategovernanceandanethicalresponsibilitytowardstheCompany

and theshareholders.Toensure thatallpartiesareequallywell informed,disclosuresaremadeofconnected

transactionsinaccordancewiththeStockExchangeofThailandCommissionannouncementondisclosureofinformation

andactionoflistedcompaniespertainingtorelatedtransactions.Directorswithpotentialinterestsinthematter

beingreviewedarerequiredtoleavetheroomandrefrainfromvoting.Thisistoallowdirectorswithoutinterests

tofreelyvoicetheiropinionsandcasttheirvote.TheCompany’sSecretarywouldannouncethenameofdirectors

whoarerequiredtoleavetheroomfortheagendaathand.Thenamesandrelationshipwithconnectedperson,the

determinationofpricesunderthetransactionandthedirectorswithdifferingopinionfromthatoftheBoardof

Directors(ifany)arereportedtotheStockExchangeofThailandwithinthespecifiedtimeframe.Theinformation

is posted on ourwebsite as well for the purpose of transparency and also recorded in the minutes for

subsequentreviews.

3. Rights of Stakeholders

TheCompanyoperateditsbusinesswithresponsibilitytowardsallstakeholdersformutualbenefitbycommencing

thepracticeofcorporategovernancetoensuretherightsofallstakeholderstobetreatequality.Thestakeholders

comprise of shareholders, employees, customers, trade partners, competitors, creditors, government and other

relatedsectorsincludingthecommunity,environmentandsocietywhichwillbetreatedundertheprinciplepolicy

ofgoodcorporategovernance,businessandemployee’ethicsinwriting.

Treat to the Various Stakeholders of the Company

Shareholder:TheCompanystrictlyoperatesbusinesswithfaithfulnessandintegrity.TheCompanyhasnever

conductedbusinesswithunfaithfuloperations.Tocarryoutbusinesswithaccurateand transparentoperation,

bringingtheproudofsuccessfulperformance,rapidgrowthwithsolidity,highabilityincompetitionandtocreate

utmostvalueaddedtotheshareholdersinlongterm.Everyshareholderhasbasicfundamentalrightinaccordance

withthe lawand istreatedwithequalityandfairness.Theshareholders,whoholdtheirsharesat least twelve

monthsconsecutively,havetherightstoproposeagendaorcandidatestobenomineefordirectors’electiontothe

GeneralShareholders’Meeting,either.’

Employee:Employeesare importantkeycontributingtotheorganization’ssuccess.TheCompany’sgrowth

depends on quality of employees. The Company cares of well-being life of all employees, thus the working

environment iswellmaintained toensure thesafeguardingof their lives,healthandproperty.New technology

is implemented to support theirworks. Employees are developed and improved to bemodern thatmatch to

applicabletechnology.Toenhanceanddevelopallemployeestobesmartandgood,theyaregiventheopportunity

toparticipate in training for skillworkingdevelopment. Self and teamwork ability arebeing expressedwidely.

Professionaldevelopmentsystemisencouragedtobuildasecurecareerandcareeropportunitiesareprovided

accordingtoindividualpotential.Compensationisawardedfairlyandsuitablyforbuildingupworkingmotivation

intheformofsalaryandbonus.Inaddition,theCompanyallowsemployeestoparticipateinreviewsthebusiness

operationwhichisthepersonaldevelopmentofcapabilitiestosupportpolicytothefurtherbusinessexpansion.

41

TheCompanyencourageseveryemployeetobeparticipatedintakingcareofenvironment.Thus,“TheCommittee

ofOccupationalSafety,HealthandEnvironment”wassetupinworkingplacetoensurethesafeguardingoftheir

livesandhealth.Thesecurityservicetwentyfourhoursadayhasemployed,andinstalledsecuritysysteminall

buildings, togetherwithother safety equipment. TheCompanyalsoprovides trainingon fire-fightingdrills and

evacuation inordertocreatetherightknowledge,understandingandpracticesuptotheacceptedsafetyand

environmentalprotectionstandards.

TheCompanyprovides retirementpensionbenefits toemployeesafter retirementschedulespecified in the

LaborAct,Italsopreparedagroupaccidentinsuranceforallemployeestopreventtherisksandrelieftheloss

to the employees and their familymembers supplemented. This is supplemented by a list ofmember social

securityfundasnormal.

TheCompanyalsoengagestheotherwelfareforthestaffsasfollows:

1. Knowledge development for employees

Inrecentyears,communicationisdevelopingveryfast.Consistentwiththenewinnovation,newtechnologies

whichhave thebroadeneffect.Peopleworldwidecanbeable toeasilycommunicatewitheachother face to

face,talkingormakingconferenceviamobilescreen.Advertisingbusinessisaffectedbythedevelopmentaswell.

Ifwedonotdevelop,wewilllagbehindinaccesstoandcommunicatewiththenewgenerationofconsumers.

Withthesereasons,in2012,wemainlyfocusondigitaltrainingforouremployees.However,wealsocontinuously

provideotherknowledgestoimproveourpotential.

Thetrainingcanbedividedinto2categoriesasfollows:

1. Digital Media Training

1.1Externaltraining:

Sendingtheemployeesinmanagement,intermediateandseniorlevelstoattendthetrainingprovidedby

organizationsandinstitutionsindigitalfieldsuchas:

•MiniMBADigitalMarketing,organizedbytheUniversityofTheNations

•DigitalMarketingSummit2012,organizedbyNationBroadcastingCorporations.

•3StepstoFacebookMarketing,byadigitalexpert.

•MarketinginADigitalEraseminar,organizedbytheMarketingAssociationofThailand

1.2Internaltraining:

Weinvitedtheexpertsorgurusindigitalmediatoprovidedigitalknowledgefrombasictointermediate

leveltoouremployeesunder“FarEastDDBDigitalAcademyProject”.Thesetrainingprogramsstartedfrom23

Marchto20June2012,covering120participantsfromFarEastGroup.

•IntroductiontoDigitalAcademy

•WhatGoogledo?

•Let’sDigitalwithAdmaxNetwork&Facebook

•OnlineMeasurement&ViralVideo

•Integratedcampaign&SoLoMo

•SEM&Twitter

•Apps&DigitalTrends

•ZocialRank&ZocialEyes

•DigitalTechnology

42

Inadditional,withrapidchangeindigitalmedia,thecompanysetupFacebookgroupasacommunicating

channelbetweenemployees inFarEastGroupandsupportthemto increaseskillsviadiscussionandsharing

experiencesorknowledgeondigitalmediawitheachother.Thisalsohelpscreategood relationshipbetween

employees.Thecompanyalsoheld“TheDigitalMarketingDay”offeringemployeestohaveachancetoownthe

digitaldevicessuchasiPhone,iPadinreasonablepriceincludingpracticingthemtousethedevicesappropriately.

2. Specific skill trainingprogramstoincreaseworkingefficiencybydepartmentsasfollows:

•Holding‘Eat,Drink&Design:GraphicAwayDay’seminarbyinvitinggraphicgurustoeducategraphic

teamwithworkshop.

•Supportingcreativepeopleandgraphicdesignerstoattend‘Design is Innovative,CreativeUnfolded’

seminarheldbyThailand’sCreativeDesignCenter(TCDC)

•Sendingcreativepeopletoattend“BADSpecialWorkshop:HungryTherapy”seminarheldbyBangkok

ArtDirectors’Associationtobroadentheircreativity.

•SupportingAccountManagement staffs toattend ‘‘AdmanAwards&Symphosium2012:Edvertising

Evolution’seminarheldbyAdvertisingAssociationofThailand.

•SupportingemployeesfromStrategicPlanning&Researchdepartmenttoattend‘Thailand’sMost

AdmiredBrand’organizedBrandAge,aleadingbusinessmagazineinThailand.

Moreover,in2012thecompanyhassenttheseniormanagementteamtoprovidetrainingandknowledge

oftheAdvertisingStrategyandCreativityDevelopmenttoMSTF’semployees(Myanmar.Spa-Today-FarEast

Ltd.),ourjointventureadvertisingagencyinYangon,Myanmar.

•Libraryforemployees

•ExtendinternalcommunicationviaIntranetandtheCompany’swebboard.

2. Cost of Living Support

•Annualbonusallowance

•SocialSecurity

•Granttodisastersrelief

•Granttopass-awayemployees

•Granttotheparents,spouseandchildpass-away

•Grouplifeinsurance

•Uniformsformessenger

3. Employee’s Family Support

•EducationalScholarshipfromDr.ThiamChokwatanaFoundation

4 .Stable Future Strengthen Support

•Retirementfundforallemployees

•LowinteresthousingloansinconjunctionwiththeGovernmentHousingBank

5. Heath Support

•Encourageemployeestohavevaccine

•Encourageemployeestodoexercise

6. Other

•Cateringstaffinthenewyear

•Retirementfarewellparty

43

Guidelines on anti-corruption

•TheCompanysupportsandencouragesstaffatall levels torealizethe importanceandhaveawareness

againstcorruption.Wesetupinternalcontrolsystemtopreventfraud.Realizingthatthecorruptionsolvingin

thesocietystartswithgoodleaders.Theleadersmusthavegoodconscienceandnotacceptthecorruptionwhile

continuouslycreatingthisawarenessintheorganization.

Customers:TheCompanyoperateswithhonestyandfairnessandprovidesaccurateinformationtocustomers.

Customers’complaintsaretakenintoaccountandconsiderationtopromptlyservetheneedsofcustomersandto

developproductsandservicestosatisfythecustomers.

Business Partners:TheCompanydealsbusinesswithitspartnersviaequalizationandhonestbyemphasizing

onthemaximizedbenefitoftheCompanyalongwithfundamentaloffairreturnforbothpartiesandtheseagreed

contractsandconditionsshallbepracticedstrictly.Thecircumstancethatmaycausesconflictofinterestshallbe

avoidtobehappenedbyhavingadiscussiontosolveproblemcomplyingwithfundamentalofbusinessrelationship

anddealwithcorporatecontractforgoods’deliveryinaccordancewithproperqualityandpunctualtimeasagreed.

Trade Competition: TheCompanydealsbusinessaccording to the rulesof competition’s frameworkwith

honestandfairverystrictlyunderthelawandhasnopolicytotakeadvantageontradecompetitioninthewaythat

againstthelaw.TheCompanybearsofitstradecompetitionthatitisthefactortobepushuptokeepdeveloping

theproductsandservicestobebetter.Duringthepassingperiods,theCompanyhasneverhadanyconflictthat

concernedtothetradecompetition.

Creditors:TheCompanykeepsonpracticingitsoperationinaccordancewithtradingcondition,loancondition

andthedutytotreattocreditorswithhonestinordertobuildupthetrustinessandreliabilityamongeachother.

Labor:TheCompanycaresandprotectsthehumanrightsintobusinessnottobeinvolvedwiththeinfringement

ofothers,un-exploitworkersandnon-illegalworkers.

Society community and environment:TheCompanyconductsbusinesswiththeresponsibilityofallparties

involved,encouragingemployeesandconcernedpeopleinpracticegoodcitizenshipandcharitableservicetothe

communityandsociety,aswellasemployees’participationincreativityserviceactivities.

Ourcompanycontinuesthepolicytosupportanyactivitiesthatarebeneficiarytothecommunityandsociety.

Poorschoolinup-countrywerestillourfocus,whichwasactuallythefollow-upprojectinthesixthyear.In2012,

weincreasedmoreassistancetotwopoorsmallschoolsinPrachinburi,BaanKlongUdomandWatNernMaiHom

school.

WehelprenovatecanteenforstudentsinBaanKlongUdomschool, improveoutdoorplaygroundandoffer

moresportequipments.Wealsodonatericeanddriedfoodforlong-termlunchofthestudents.

AtWatNernMaiHomschool,weinstalledwindowstothewholeschoolbuilding,donatedbookstothelibrary,

procuredawaterpurifierfortheschool.Wealsodonatedsportwears,riceanddriedfoodlunchaswell.

Weencourageouremployeestoparticipateindonationcampaignandvolunteerthemselvestoentertainthe

childreninbothschoolonactivityday.

TheCompanyraisingawarenesstoemployeestoreducewastebothwithinandoutsidetheofficebyreduction

ofmaterialthatmaycausepollutionorwastebalancetothenaturalenvironment,campaigningstaffstoreduce

energyconsumptionbytakingthestairsinsteadofelevatorsandairclosedoffduringlunchtime.Decreasetheuse

ofpaperandpromotetheuseofreusedpaper.

44

Government:TheCompanyhasfullypaidthecorrecttaxperiodrequiredbythelawasthecorporatetax;

valueaddedtax,specificbusinesstax,withholdingtax,propertytax,signboardtax,customsduty,revenuestamp

includingthegovernmenttariffsrelatedtothebusinessoperation.

Channels of participation of Stakeholders:Shareholdersandotherstakeholdersareabletoinformaclueor

provideinformationofthesignificantissueabouttheaccuracyforfinancialreport,internalcontroldeficiency,or

illegalandunethicalpractice. Itcancommunicate through theCompany’sSecretary to thedirect lineno.

[email protected]’sSecretaryisresponsiblefortheinformation

anddocuments,submittingthespecificissuetotherelevantpersonandreporttotheBoardofDirectors.Inthis

respectthewhereaboutsorthecomplaintwillbeprotectedandpreservedtherighttoprotecttheconfidentiality

ofthebest

4. Disclosure and Transparency

TheCompanyrecognizestheimportanceofaccuratefinancial informationdisclosureontimeincompliance

withthestandardaccountingprinciples,includingnon-financialinformation,tobedisclosedwithtransparencyand

incompletionunderlawandregulationsoftheSecuritiesandExchangeCommissionandtheStockExchangeof

Thailand,andothergovernmentunitsconcerned.TheCompanyalsoconstantlymonitorsandupdatessuchregulations

forinvestors’confidenceontheCompany’sbusinessconductwhileaddsonbenefitstotheshareholders.Interested

personsmayaccesssuch informationonvariouschannelssuchas theannual report, theannualstatements

(Form56-1), thewebsiteof theStockExchangeofThailandwww.set.or.th, and theCompany’swebsite

www.fareastddb.com.AnyshareholdersorinvestorsshallqueryanyconcernedissuesattheCompany’sinvestor

relationsbycallingourdirector,Mrs.ChailadaTuntivejakul,attel.0-2354-3333,fax.0-2644-9550,oremailaddress:

[email protected].

TheCompanyhasapolicyforanytransactionwhichmayfallunderconflictsofinterestwhichtheauditcommittee

shallparticipleandrecommendonsuchrelatedtransaction.Thedirectorwhohasconflictsof interestonsuch

transactiondoesnotparticipateorvoteonthatagendainordertoletotherdirectorsfairlyvoteandmakeadecision

byconsideringthebestbenefitsoftheshareholders.TheCompanysummarizesanddisclosestheresolutionon

suchtransactionbyspecifyingitsvalue,contract,reason,andotherinformationconcernedaccurately,completely

andontimeaccordingtothecriteriaoftheStockExchangeofThailand,withafullreportontheannualreport

andForm56-1

TheCompanyconstantlyfollowsup,examines,andbalancespowerforultimatetransparencywithaninternal

controlsystemcoveringmanagement,operation,andfinanceauditedbytheCompany’sauditor.Theauditorshall

audittheCompany’soperationaccordingtotheconditionsrequiredbytheBoardofDirectorsinordertoprevent

problems,suggestpracticalimprovements,findoutthecauses,andrecommendsolutionsendorsedbytheauditing

team, includingdisclosesufficient information forgoodcorporategovernancebyreportingdirectly to theaudit

committee.

TheCompanydisclosesitsFinancialStatementandotherinformationtothepublicviavariouschannelsas

compliedbythelawstrictly,completelyandtimely.Furthermore,theCompanyalsodisclosesinformationtoexpress

ofits’transparencyinoperatingbusinessasfollows:

1.DisclosureofeachCommittee’sdutysuchasnumbersofthemeeting.

2.Disclosureofshareholding’sstructureandratiooftheDirectorsandExecutives.

45

3.Disclosureofremuneration’stype,descriptionandpaidamountinindividual.

4.Disclosureofcorporategovernance,businessandemployee’sethics.

5.Providethechannelsthatstakeholdersareabletoinformaclueorprovideinformationofthesignificant

issueabouttheaccuracyforfinancialreport,internalcontroldeficiency,orillegalandunethicalpractice.Itcan

communicatethroughtheCompany’sSecretarytothedirectlineno.0-2354-3549orbyemailaddress

[email protected]’sSecretaryisresponsiblefortheinformationanddocuments,submittingthe

specificissuetotherelevantpersonandreporttotheBoardofDirectors.Inthisrespectthewhereaboutsorthe

complaintwillbeprotectedandpreservedtherighttoprotecttheconfidentialityofthebest.

Remuneration for the Directors and Executives

•Directors’Remuneration:AlthoughtheCompanyhasnotappointedaremunerationcommittee,theremuneration

process isongoing.Themembersof theBoardofDirectorscollaborateall together toconsider thedirectors’

remunerationbasingontheoperatingresults,theapprovedremunerationratebytheshareholdersandtheprevious

year’sremuneration,andshallproposetotheshareholdersforapproval.Theremunerationshallberedeemedas

meetingfeeforthemeetingat8,000.00Bahtforeachdirectorpermeetingwithannualremunerationforalldirectors.

IntheordinarymeetingofshareholdersNo.18onApril27,2012,theshareholdersapprovedtotallyofnomore

thansixmillionBahtforthedirectors’remunerationandactuallypaidat4,535,000.00Baht,disclosedunderthe

directors’remunerationintheannualreportandForm56-1.

•Executives’Remuneration:Theexecutives’remunerationisbasedontheprinciplesandpoliciesinrespect

oftheoperatingresultsandtheperformanceofeachmanagementmember.

5. Responsibilities of The Board

TheBoardofDirectorsisresponsibleforcorporategovernanceandhonestconductofbusinessforthegreatest

benefitoftheCompanyandtheshareholders.Writtenpolicieshavebeenprescribedoncorporategovernance,

businessethicsandemployeeethics.TheseareapprovedbytheBoardofDirectorsanddistributedtodirectors,

executivesandemployees;and,publishedontheCompany’swebsite.TheBoardofDirectorshasbeenactively

involvedinthedeterminationofvisionsandmissionsinorderfortheexecutivesandtheemployeestosharea

commongoalandfortheoperationoftheCompanyincompliancewiththelawsandotherregulations.Thisisin

thebestinterestoftheCompanyandtheshareholders.TherehasbeennorecordoftheCompany’sviolationof

aregulationoftheofficeoftheSecuritiesandExchangeCommissionortheStockExchangeofThailandinthe

pastyear

Composition of the Company’s Board of Directors

TheCompany’sBoardofDirectorscomprisedofmemberswhohaveknowledge,competency thatplayan

importantroleindefinitetheCompany’spolicy.ItcooperateswithseniorExecutivestosetshortandlongtermplan

ofbusinessoperation,financialpolicy,riskmanagement,overviewoforganizationinclusiveofcorporategovernance,

auditandevaluatetheperformanceoftheCompanyaswellasthepracticeoftheCompany’sBoardofDirectors

alongwiththesetprinciplesindependently.TheCompany’sBoardofDirectorsisfromtheelectionfollowingthe

resolutionoftheGeneralShareholder’sMeetingalongwiththerules,legalandtheCompany’sPrincipleofAssociation

thatisappropriatetotheCompany’sbusiness.

46

The Structure of the Board

TheBoardofDirectorsiscomprisedof12directors:

•ExecutivesDirectors 5persons

•Non-ExecutiveDirectors 2persons

•IndependentDirectors 5persons

As theselectioncommitteehasnotbeenappointed; theBoardofDirectorsshall select thedirectorswith

appropriatecapability, knowledgeable, vision,ethics,background,andmentality.TheBoardofDirectorsclearly

assignedtheresponsibilityofeachcommittee,andappointedtheManagingDirector,undertheBoardofDirectors,

tomanageallbusinessoperationstomeettheCompany’sobjectivesandgoalsbycomplyingwiththepoliciesof

theBoardofDirectors.

Authority of the Directors

GroupA.Mr.BoonchaiChokwatana,Mr.WasinTeyateeti,Mr.DanSornmani,Mrs.ChailadaTantivejakul.

GroupB.Mrs.MaleeLeelasiriwong,Mr.ArthornMaeknoparat,Mrs.SiriwanVilassakdanont.

anytwoofGroupA.cansignwiththeCompany’ssealoroneofGroupA.signwithotheroneofGroupB.

withtheCompany’sseal.

TheBoardofDirectorsmaydesignatethenamesofthedirectorswhohavethepowertoaffixtheirsignatures

togetherwiththesealoftheCompanytobebindingontheCompany.

Term of Directors

InaccordancewiththeCompany’sArticleofAssociation,one-thirdofthedirectorshavetoretirefromthepast

ateachannualgeneralmeeting.Inthecasewherethenumberofdirectorscannotbedividedbythree,thenumber

ofthedirectorstoretireistobeclosettoone-third.Thelongest-servingdirectorsareaskedtoretire.Incasethere

isnosolutionofretire,thelotterydrawneedstobecast.Directorswhoretirefromthepastmaybere-elected.

DirectorialTermofCommitteecomprisingoftheAuditCommitteeandRiskManagementCommitteeis1yearand

uponretirement,theymaybere-elected.Inthecaseotherthancompetitionofterm,theDirectorswillproposea

qualifiedindividualtotheBoardofDirectors’meetinginaccordancewiththeArticleofAssociationforappointment.

TheCompanyhasnotfixedthemaximumperiodofdirectortermaswellbelievethattheabilitytooperate

businessandtheexpertiseofeachdirectorisnotdependeduponage.

The Number of Other Companies Involved by the Directors

TheCompanydisclosesappropriatedetailofeachdirector’spositionsinothercompaniesinattachmentno.1

ofForm56-1andintheCompany’sannualreport.Atpresent,therearenodirectorswithmorethan5positionsin

othercompanies.TheCompanyisconfidentthereisnoimpacttotheCompanyduetothedirectors’commitment

andresponsibilityalongwiththeirfullparticipationinthemeetingandconsistentbeneficialeffortfortheCompany.

Definition of the Independent Directors

ThequalificationsofindependentdirectorsareasperthefollowingrequirementsoftheEquityMarketCommittee.

1.ThepersonmustholdnomorethanonepercentofallsharesoftheCompanywithwhichheorsheholds

thevotingright,aswellas,itsparentcompany,itssubsidiary,itsjointventureorajuristicpersonwithapossible

conflictofinterests.Thesharesheldbyindividualsrelatedtotheindependentdirectormustalsobeincluded.

2.ThepersonmustnotbeorhavebeenadirectorwithinvolvementinthemanagementoftheCompany;an

employee,astaffmemberoraconsultantwitharegularsalary;or,anindividualwiththeauthoritytocontrolthe

Company,itsparentcompany,itssubsidiary,itsjointventure,asubsidiaryofthesamelevelorajuristicperson

withapossibleconflictofinterests.Thereis,however,anexceptionifthepersonhasnotbeeninvolvedinsuch

circumstancesforatleasttwoyearspriortothedayonwhichhe/sheisappointedasanindependentdirector.

47

3.Thepersonmustnotbeanindividualwithbloodorlegalrelation–asafather,amother,aspouse,asibling

orthespouseofachild–toanexecutive,amajorshareholder,anindividualwiththecontrollingauthority,oran

individualwhowillbenominatedasanexecutive,oranindividualwiththecontrollingauthorityofboththeCompany

oritssubsidiaries.

4.ThepersonmustnothaveorhavehadabusinessrelationwiththeCompany,itsparentcompany,itssubsidiary,

itsjointventure,asubsidiaryofthesamelevelorajuristicpersonwithapossibleconflictofinterestsinsucha

mannerwhichmayinterferewiththefreeexerciseofone’sdiscretion.Also,thepersonmustnotbeorhavebeena

majorshareholder,adirectorwhoisnotanindependentdirectororanexecutiveofanentitywithbusinessrelation

withtheCompany,itsparentcompany,itssubsidiary,itsjointventure,asubsidiaryofthesamelevelorajuristic

personwithapossibleconflictofinterests.Thereis,however,anexceptionifthepersonhasnotbeeninvolvedin

suchcircumstancesforatleasttwoyearspriortothedayonwhichhe/sheisappointedasanindependentdirector.

Thebusinessrelationsundertheaboveparagraphisinclusiveofconventionaltradingtransactionstoconduct

thebusiness; leaseor rentingofproperty; transactions involvingassetsorservice;provisionoracceptanceof

financialassistanceintheformofgrantingoracceptanceofloansorguarantee;andtheuseofassetsascollateral

forloansincludingothersimilaractswhichresultinthepetitioningpartybeingobligatedtorepaytheotherparty

fortheamountfromthreepercentofthenetcorporealassetsofthepetitioningpartyorfromTwentyMillionBaht,

whicheverislower.Thecalculationofsuchdebtobligationisonthebasisofcalculationofrelatedtransactionvalue,

aspertheStockExchangeofThailandCommitteeAnnouncementontheDisclosureofInformationandAllowed

PracticesofListedCompaniesConcerningRelatedTransactions.Thedeterminationofdebtobligationisinclusive

ofdebtobligationarisingduringoneyearpriortothedateofbusinessrelationswiththesameindividuals.

5.ThepersonmustnotbeorhavebeenanauditoroftheCompany,itsparentcompany,itssubsidiary,itsjoint

venture,asubsidiaryofthesamelevelorajuristicpersonwithapossibleconflictofinterests.Also,thepersonmust

notbeamajorshareholder,adirectorwhoisnotanindependentdirector,anexecutiveoramanagingpartnerof

theauditofficetowhichanauditoroftheCompany,theparentcompany,asubsidiary,ajointventure,asubsidiary

ofthesamelevelorajuristicpersonwithapossibleconflictofinterestsbelongs.Thereis,however,anexception

ifthepersonhasnotbeeninvolvedinsuchcircumstancesforatleasttwoyearspriortothedayonwhichhe/she

isappointedasanindependentdirector.

6.Thepersonmustnotbeorhavebeenaprofessional legalconsultantorafinancialconsultantreceiving

greaterthantwomillionbahtoffeeperyearfromtheCompany,itsparentcompany,itssubsidiary,itsjointventure,

asubsidiaryofthesamelevelorajuristicpersonwithapossibleconflictofinterests.However,inthecasewhere

theprofessionalinquestionisajuristicperson,thepersonmustnotbeamajorshareholder,adirectorwhois

notanindependentdirector,anexecutiveoramanagingpartnerofthatprofessionalentity.Thereis,however,an

exceptionifthepersonhasnotbeeninvolvedinsuchcircumstancesforatleasttwoyearspriortothedayon

whichhe/sheisappointedasanindependentdirector.

7.Thepersonmustnotbeadirectorappointedtorepresentacompanydirector,amajorshareholderora

shareholderwhoisrelatedtoamajorshareholderoftheCompany.

8.Thepersonmustnotengagedinabusinesswhichisofthesamenatureas,orincompetitionwith,thatof

theCompanyorthesubsidiaries.Notasignificantpartnerofapartnershiporadirectorwithinvolvementinthe

administration,noranemployee,astaffmemberaconsultantwithareguarsalary,norashareholderwithmore

thanonepercentofallshareswithvotingrightsofanothercompanywhichisengagedinabusinessofthesame

natureas,orincompetitionwith,thatoftheCompanyorsubsidiaries.

48

9.Thepersonmustnothaveanyothercharacteristicswhichrenderhimorherincapableoffreelyopiningon

theoperationoftheCompany.

InthecasewheretheEquityMarketCommitteeannouncesachangeofqualificationsofindependentdirectors,

therequirementsoftheCompanyindependentdirectorswillalsochangeaccordingly.

FollowingtheappointmentasanindependentdirectorunderParagraphs1to9,theindependentdirectormay

beassignedbytheBoardofDirectorstomakedecisionsonthebusinessoftheCompany,itsparentcompany,its

subsidiary,itsjointventure,asubsidiaryofthesamelevelorajuristicpersonwithapossibleconflictofinterests

inthemannerofacollectivedecision.

Criteria on Recruitment and Selection of an Independent Director

TheBoardofDirectorsshallconsiderarecruitmentofanindependentdirectorincompliancewiththeregulations

andconditionsoftheSecuritiesandExchangeCommissionandtheStockExchangeofThailandinorderto

proposetotheshareholdersintheshareholders’meetingfortheirapproval.

The Company’s secretary

TheCompanyhasassignedMrs.SureeMuennarintrastheCompany’ssecretarytotakefullresponsibility

ofthispositioninordertoconducttheCompany’sbusinessefficientlywithgoodcorporategovernance.

ThescopeofdutiesandresponsibilitiesoftheCompanysecretaryareasfollows:

(1)preparingandkeepingthefollowingdocuments:

a)aregisterofdirectors;

b)anoticecallingdirectormeeting,aminuteofmeetingoftheBoardofDirectorsandanannualreport

oftheCompany;

c)anoticecallingshareholdermeetingandaminuteofshareholders’meeting;

(2)keepingareportoninterestfiledbyadirectororanexecutive;

(3)performinganyotheractsasspecifiedinthenotificationoftheCapitalMarketSupervisoryBoard.

Responsibility of the Board of Directors

Leadership and Vision

TheBoardofDirectorscomprisesofmemberswhoareknowledgeable,professional,experiencedinvarious

fields,specialized tobenefit theCompany,understanding their roles, responsible, leadership-oriented,visionary,

independent,encouragedtomakedecisions,andgoal-orientedtoconductthebusinesstomeettheCompany’s

objectivestodrivethemaximumreturnstotheCompanyandtheshareholders.Themission,goal,strategies,

operationplan,andannualbudgetareplannedandmanagedinordertomeetitsobjectivesaccordingtoitscode

ofbusinessconduct.

TheBoardofDirectorscomprisesofatleastfivepersons(accordingtothelawofpubliccompanylimited)and

thequalificationofeachdirectormuststartasbeingaregularpersonand

1.Anindividualofjuristicage

2.Mustnotbebankrupt,incompetentorquasi-incompetent

3.MustneverbeimprisonedbyafinalverdictinconnectionwithafraudulentAct

4.Mustneverbehandedpunishmentorremovedfromanorganizationoragovernmentoffice,inconnection

withafraudulentact

TheBoardofDirectorscontinuallyfollowsuptheperformanceresultsandassignsthemanagementtoreportits

operationresultsandsecuritiespossessionofeverydirectorandexecutiveineveryBoardofDirectors’meeting.

49

Combination or separation of positions

TheChairmanoftheBoardofDirectorsandChairmanoftheExecutiveBoardbethesameperson.However,

charterofallcommitteeshavebeenassignedauthorityandresponsibilityofthedirectorsareclearly.Aswellas,the

company’sindependentdirectorsasofone-thirdoftheBoardofDirectors,arequalifiedmember,theyarefreeto

verifythebalanceofauthority.ThemeetingoftheBoardofDirector,directorscanactfreelyinthemeeting.Such

as,inthecaseofmattersthattheChairmanhasaninterestinthepresidentasCEOshouldnotattendthemeeting

onsuchmatterandthedirectorwhohasnointerestinactingthechairmanofthemeetinginterim.

Report of the Interest of Directors and Executives and Related Group

TheCompanyprovidesthereportoftheInterestofDirectorsandExecutivesoroftheRelatedPersonsforthe

monitorialbenefitofitsinterestofthesaidgroupinaccordancewiththeprinciplesandprocedurethatdefinedby

theCompany’sBoardofDirectorsonthepartoftheInterestoftheCompany’sBusinessManagementalongwith

newissueoftheOfficeofSecuritiesExchangeCommission’srules.

Transaction with Possible Conflicts of Interest

TheCompany’sBoardofDirectorshasdefinedwell-establishedguidelinetopracticewithanypossibleconflict

ofinterestbetweenshareholders,directors,exclusivesandotherpersonstohaveconfidencethatwhenengagein

transactionwithpossibleconflictofinterestthatisfairandreasonable.Theinformationwillbedisclosedaccurately

andentirelywiththetransparentproceduretoapproveanytransactionthatcaresforutmostbenefitoftheCompany

andalongwiththeinstructionandpracticingguidelineoftheOfficeofSecuritiesandExchangeCommissionand

theStockExchangeofThailand.

AteverymeetingoftheCompany’sBoardofDirectorsthatthereisaconsiderationontransactionwithpossible

conflictofinterestagainstanydirector,thedirectorwhoisstakeholderwillleavethemeetingroomwithnullvote

onthatagendainorderthattheotherdirectorscangiveopinionfreelywiththecooperateoftheAuditCommittee

togiveopinionfreely,too.

Internal Control and Risk Management

TheBoardofDirectorsrecognizestheimportanceofcontrollingsystemsinoperations,finance,andcodeof

businessconductbyappointinganinternalauditortomonitorandcontrolthosefunctions,includingthecompu-

tersystem,tomakerecommendationforthemosteffectivesolutionswithindependenceandcounterbalanceby

reportingtotheauditor’smanagementforexchangesofopinionsonfactsandproblemsaswellaspreventionand

improvementsolutionsbeforereportingtotheauditingcommitteetoconductameetingtoexchangetheirviews

onauditanditsresultregularly.

TheBoardofDirectorsconductsriskmanagementaccordingtoitscharacter,typeandcategorybyevaluating

the factors, internalandexternal, to findasolution toprevent,develop, improveandextend the resultof risk

managementthroughouttheorganizationwithoutanyimpacttoitsoperation.

Preventing Conflicts of Interest

Setthemeasurementforthepreventionofinsiderimproprietyofthedirectors,executivesandemployeeswho

areintheorganizationthatacknowledgetheinformation,includingspousesandminorchildrenofsuchpersonswill

notprovidetheinformationwithintheCompanytouseforpersonalgainaswellasfortradingCompany’sshares,

especiallyintheperiodof1monthbeforethepublishedfinancialstatementstothepublic.Themessageshould

clearlysetforthintheCodeofConduct.TheCompanyagreestoreporttoshareholdersoftheCompany’sBoard

ofDirectors,executivesorrelevantpersonsforthepurposeofmonitoringtheinterestofsuchpersonunderthe

rulesandproceduresprescribedbytheBoardofDirectors,theinterestrelatingtotheCompany’smanagement

50

affairsasofthenewSecuritiesActandtoconsiderandapprovethetransactionsthatarerelatedtransaction,Its

providedtheinterestsdisclosureofdirectors,executivesandrelatedparties,valueofthetransaction,independent

directors’opinionaswellasothernecessaryinformationfortheBoardofDirectors/shareholderscandecidefor

thebenefitofthecompanyasawhole.Italsohassetguidelinestopreventthedirectorsandexecutiveshasan

interestsorinvolvementintheprocessdecidedtoconsiderthetransactionsbetweentheCompanyandthosewho

areinterestedorinvolvedinitandthatrelatedpersonswhoareinvolvedorinterestedinanymattershouldnot

attendthemeetingtoconsiderorvoteonsuchmatter.

Inside Information Usage Control

TheCompanyhaspolicytodisclosetheinformation,transparency,FinancialStatementandbusinessoperation

bydefinitetheprincipleofpracticeoffinancialdisclosureandotherissuesthatrelatedtobusinessandtheCompany’s

performancewithaccuratecompletionthatissufficienttorelyandregulartimelyfortheshareholders,investors,

security’sanalyzersandgeneralpeople.TheCompany’sBoardofDirectorsmonitorsthepracticethatwillfollow

thedefinedlawandrulesthatconcernwiththetransparentdisclosureofinformationstrictly.IncasetheDirectors

orExecutiveshavethechangethebuyorsaleofsharesasdefinedonthedefinitionoftheOfficeofSecurities

andExchangeCommissionandtheStockExchangeofThailand,musttoreporttheinformationtotheunitthatis

relatedwithintimeasset.TheDirectorsorExecutiveshavedutytoreporttheirholdofsecuritiesanddisclosetheir

stakeandrelatedpersonstotheCompany’sBoardofDirectorforclearandtransparency.InsideInformationUsage

ControlisunderthedutyandresponsibilityoftheDirectors,ExecutivesandemployeestokeeptheCompany’s

informationassecretfirmly,especially,theinsideinformationthatnotyetdisclosedtothepublicormayaffect

tothebusinessoperationorsharevalue.TheDirectors,Executivesandemployeeswillnot takeadvantageon

information to seek for their own benefit, for the benefit to buy or sell the Company’s share or give inside

informationtotheothersforthebenefittoselltheCompany’sshareortooperatebusinessthatcompetetothe

Companyorrelatedbusiness.NodisclosurethesecretoftheCompany’sbusinesstooutsiders.Anyprohibited

practicethatmaycausethe lostordamageofbusinessopportunityoftheCompanywill takeasthepractice

against thepolicyofcorporategovernance,businessandemployees’ethicsandwillbeseriouslypunishedon

discipline.

The Board of Directors’ Meeting

TheBoardofDirectorsrecognizesthe importanceofthemeetingasoneofthedutiesforthedirectorsto

participateandmakedecisionsontheCompany’soperations.Themeetingisalwaysplannedinadvancethroughout

theentire yearand is regularlyheldeverymonth.TheCompany’s secretary sendsan invitation letterwithan

agenda,theminutesofthelastmeeting,andotherdocumentsnecessaryforthedirectors’considerationinadvance

according to law. The chairman presiding over the meeting shall grant the directors and management free

expressionontheiropinions.TheCompany’stopexecutivesshallparticipatethemeetinginordertoclarifyany

matterconcernedandeverydirectorontheBoardofDirectorsshallbeabletorequestfurtherinformationfrom

thoseexecutivemanagementandtheCompany’ssecretary.

Afterthemeeting,thecompany’ssecretaryrecordstheminutesofmeeting,reviewedbytheexecutivecommittee

beforecertifiedbythechairmanandproposedforendorsementbythedirectorsduringthefirstagendainthenext

meeting.Thedirectorshavetheauthoritytoaddorcorrecttheminutesofthemeetingtobemostaccurate.

TheminutesofmeetingissystematicallykeptattheCompanyalongwithitsattachmentsforeasyaccessand

reference.

In2012,therewerenineBoardofDirectors’meetinganddetailofmeetingattendanceofthedirectorsis

disclosedonthesubjectofthemeetingofeachboardin2012.

51

Subcommittees

Toensure theoperation is transparently andcarefullymanagedand reviewed, theBoardofDirectors has

appointedsubcommittees to respondonsuch issuesand report to theBoardofDirectors.Atpresent, the

subcommitteesarecomposedoftheauditcommitteeandtheriskmanagementcommitteewhichareindependent

andresponsibleaccordingtothecodeofbusinessconduct.

Development of the Directors and Executives

ToenhancethepracticeoftheBoardofDirectors’duty,theCompanyhaspolicytopromotealldirectorsand

executive.TheCompanyappreciatesandsupportsthedirectorsandexecutivestohigherlearning.TheBoardof

Directorsvaluestheparticipationindevelopmenttrainingbeneficialtothedirectors’performancebyattendingthe

DirectorAccreditationProgram(DAP),theDirectorCertificationProgram(DCP)coursesheldbytheThaiInstitute

ofDirectorsAssociation(IOD),includingothershortseminarsorcoursestobeheldbyIODinthefuture.

TheCompanyalsoarrangeshandbookfornewdirectorstostudythesignificantinformation,thepoliciesonthe

codeofbusinessconduct,thebusinessethics,theemployeeethics,andotherregulationsoftheSecuritiesand

ExchangeCommissionandtheStockExchangeofThailand.Thenewdirectorsshallparticipateinanycourseheld

byIODinordertoenhancetheirprofession.Moreover,theBoardofDirectorshasameetingtoshareexperiences

withdirectorsandtopmanagementofotherorganizationsbothlocalandoverseas.

Succession Plan

TheBoardofDirectorssetthesuccessionplanoftheseniorpositionwithitsguidelinesforthepreparation

ofsucceedingpersontobeassignedtoalternativejobsintheexecutivelevelthatshallbebasedonthefuture

directionof theorganizationwhichqualificationof theexecutivewill be required tocomplywith thedirection

andgoalssetforthbytheCompanybygeneratingthejuniormanagementattheinitialstageforthepotential,

knowledge,abilityandvisiontoencouragetobecomeseniormanagementtoasequenceofsteptodevelopthe

technicalknowledgeandlearnfrompracticeexperience.TheBoardofDirectorsandExecutiveCommitteehave

beenmonitoringandevaluatingtheperformanceofthepersonwhowillbepromotedtoanexecutiveinorderto

ensurecontinuity.

Policy on Employees’ Development

TheCompanyhasestablishedapolicyonemployees’development inall levels forbetter knowledgeand

experiencetoservetheneedoftheCompanyandtodevelopemployees’capabilitytotaketheorganizationto

thenextlevelofsuccessandstability.TheCompanyemphasizestostrengthenemployees’competitiveskillsto

answertheCompany’sstrategybyrecruitingqualifiedprofessionalswithgoodattitudeandtherightqualifications

tolectureonJobDescriptiontoclarifyeachjobpositionanditsoperationevaluationwhileencouragesemployees

toseek furtheronknowledgeandself-developmentsandconductsseminars, internalandexternal,aswellas

stimulatesemployeesforself-learningwithavariety-filledinternallibrary.

Report of the Board of Directors

TheBoardofDirectorstakesresponsibilityforthefinancialstatementsoftheCompanyanditssubsidiaries,

includingonesstatedintheannualreport,andtheannualstatements(Form56-1).Thefinancialstatementsshall

bebasedonacceptedaccountingstandardsinThailandundersuitableaccountpolicy.TheBoardofDirectorsis

requiredtocarefullyconsiderandmakethebestassumptioninreportinganddisclosingsufficientinformationin

thenotessectionofthefinancialstatements.

52

Theauditcommitteeconsistingofnon-executivedirectorsisappointedtoberesponsibletooverseethe

effectivenessoftheinternalcontrolsysteminordertoensurethatfinancialstatementsareaccurateandcomplete

tosecuretheCompany’sassetsandtodetectanysignificantissuesvulnerabletotheCompany’sstability.

Thecommentstothisregardarereportedbytheauditcommitteeandpresentedinthisannualreport.

TheBoardofDirectorsagreesthattheCompany’soverallinternalcontrolsystemisadequateandappropriate

whichbringsconfidenceandreliabilityonthefinancialstatementsoftheCompanyanditssubsidiaries.

Investors’ Relations

TheBoardofDirectors recognizes the importanceof informationdisclosureboth in financial segmentand

generalinformationaswellasimportantdatathatmayaffecttheshares’priceoftheCompany.Allinformationis

disclosedcorrectly,completely,reliably,andtransparentlythroughtheSET’schannelsandtheCompany’swebsite

atwww.fareastddb.com.

Astheresultofafewactivities,theCompanyhasnotsetupaninvestors’relationshipunitexceptappointingMrs.

ChailadaTuntivejakul,theDirector,toprovideallinformationtoanyinvestororpersonconcerned.Mrs.Chailada’s

contacttelephonenumberis0-2354-3333,faxno.0-2644-9550oremailaddress:[email protected].

Responsibility for use of Internal Information TheCompanyhassetpoliciesandproceduresforitsseniorexecutivesintheuseofinternalinformationfor

personalpurposesorforsecuritiestransactionparticularlyduringonemonthpriortothedisclosureofthefinancial

reporttothepublic.TheDirectormustsubmithisorhercopyofthereport,whenholdingsoftheCompany’s

sharesarechangedtotheSETandtotheCompany’ssecretaryforsubmissiontotheCompany’sCommitteeof

theBoardofDirectors.

Employees

AsofDecember31,2012,thenumberofemployeesare188personswithstaffinkeydepartmentsareasfollows:

•CreativeDepartment 46persons

•AccountManagementDepartment 31persons

•ProductionDepartment 25persons

•StrategicPlanning&ResearchDepartment 12persons

For theyear2012theCompanyhaspaid toemployees (excludingemployeeswhoserveasdirectorsand

executives)as139,370,814.00Bahtcompensationassalary,bonusandallowances.Inthepastyear.Thereare

nolabordisputesarise.

Internal Controls IntheBoardofDirectors’MeetingNo.182(2/2013)heldonFebruary27th,2013,which3AuditCommittee

memberattending,theBoardassessedtheCompany’sinternalcontrolsystembyobtaininginformationfromthe

management.After reviewingfiveareasof internalcontrols,namely: (1)Organizationandenvironment; (2)Risk

management;(3)Managementperformancecontrol;(4)TheInformationSystemandDataCommunications;and

(5)Themonitoringandevaluationsystem,theBoardcametotheconclusionthattheCompanyhadasatisfactory

internalcontrolsystemasfollows:

1. Organization and Environment

Theorganizationalstructureandtheoperationalenvironmentofourcompanyallowthemanagementtoperform

efficiently.Weareabletohelpouremployeesappreciatetheneedforaninternalcontrolsystem;and,toestablish

53

definitebusinesspoliciesandgoalsfairlyforemployees,customers,partners,shareholders,thesocietyandthe

environment.Ouractivitiestoachievethesegoalsarefrequentlyreviewedtoensureconsistencyandsuitability

withpresentsituation.Organizationalstructure,committeecharters;and,thedutiesandtheresponsibilitiesof

thePresidentareestablishedinwritinginordertoclearlydefinetheauthorityofdifferentcompanyoperations.

Additionally,goodcorporategovernancepolicy,businessethicsandemployeecodeofconductarealsoestablished

inwritingtoserveasoperationalguidelinesforthedirectors,theexecutivesandtheemployees.Allofthese

writtenregulationsandguidelinescontributetotheefficiencyofourinternalcontrolsystem,whileawrittenfinancial

transactionreviewandapprovalcodeisinplaceaswelltopreventunjustorunahorizeduseofcompanyassets.

2. Risk Management

TheestablishmentofriskmanagementcanhelptheCompanywithriskmanagementsystemandinstitutional

guidelinesforleadinoperationsintheorganizationwithhonest.Themanagementhasregularlymadeassessment

ofthebusinessrisks,bothinternallyandexternally.TheCompanyholdsmeetingwithitsmanagementand

employeesonregularbasistocommunicatethesituationand impactof theexternal risks influencingthe

Company’soperationsandmeasurestopreventandhandleariskthatapproachtotheappropriateleveland

effectivelywithoutanyeffecttotheoperationoftheCompany.

3. Management Performance Control

TheCompanyhasset, inwrittenform,theclearareaoffinancialresponsibilitiesandtheauthorizedlineof

executivesineverymanageriallevel.Themanagementshallaudit,reviewandmonitortheoperatingperformance

ofallsectors.Thetransactionswithmajorshareholders,directors,executiveoranindividualassociatedwiththe

aforesaidparties,aswellas,anysuchrelatedtransaction.Theproceduresdetailedintheannouncementsofthe

MarketCommitteeareobserved.Wereviewourperformanceonamonthlybasisandensurethattheoperationis

consistentwiththeresolutionsofshareholders’meetingandallrelevantlaws.Additionally,inordertoensureour

compliancewithapplicablelegalrequirementsatalltimes,wehaverequiredouremployeestostrictlyandclosely

observecompanyregulationsandrelevantlaws,especiallyintheareasofgoodcorperategovernanceprinciples,

businessethicsandemployeescodeofconduct.

4. The Information System and Data Communications

TheCompanyprovidesup-to-date informationsystemanddatacommunication forsupporting thepractice

withinandoutsidetheorganizationeffectivelyandcontinuousdevelopment.Thereisthedepartmenttocollect,

analyzeandstoreitinDataWarehouseSystemoftheCompanyforenhancingefficiencyandeffectivenessofthe

managementthroughouttheorganization.Theworkingsystemisincludedoffinancialaccount,financialstatement

forthemanagement,purchasing–outsourcingmanagement,commissions,workinprocessmanagementand

humanresourcesmanagement.Theyallareintegratednetworkingthatcancontrolandpreventofproblemsthat

causedbymistake.ThereisanevaluationandmonitoringsystemtobeeffectiveandcompliedwiththeCompany’s

policy.Thus,receivinginformationshallbecorrect,reliableandfastforassistingtheExecutivestogetinformation

ontime.Thisallowsinformationandknowledgecanbedecidedquickly.TheCompanyhasmeasurestosecure

hardware,softwareanddatabasesystembyusingFirewallProgramtoprevent fromhackersandAnti-virus

Program.Thecopiesofdatabackuphasbeenstoredinelectronicmedia.

5. Monitoring and Evaluation Systems

TheCompanyhasagoodevaluatingandmonitoringsystemtoensurethatproceduresandinternalcontrol

activitiesareeffectiveand respond tochangeappropriatelyand timely. Ithasalso takenon theactivityof

monitoringbyleaderstofollowuponemployees.Inaddition,theCompanyhashadinternalauditteamtoperform

dutiesindependently,andreporttheauditingresultswithopinionsdirectlytotheCompany’sAuditCommittee.

54

ANSAuditCompanyLimitedwas theauditorof theCompany’s financial statements for2012.Theauditor

reviewedFarEastDDB’s financialstatements, resultofoperationsandcashflowasofDecember31,2012 in

accordancewith generally accepted auditing standards and assessed effectiveness of theCompany’s internal

controlsinrelationtosuchfinancialstatements.Theauditorreportedthatthereisnosignificanterrorintheinternal

controlsystemwhichwillseriouslyaffectthenotestothefinancialstatements.

Human Resources Management

TheCompanyiswellawareofitsemployeesassignificantandvaluableassetsthatsuccessfullydriveforce

behinditssuccesstoachievegoalsasoneoftheleadingcompanyinexcellentservicesthatimpresscustomers

with utmost pleasure. Themanagement policies are entirely emphasized on improving anddeveloping skill of

employeesandtheteamtogainprofessionalworkingability.Itbeginsfrombasispolicythattheemployeesare

giventheopportunitytoparticipatewithentireworkingsystemeitherinexecutivemanagementandoperation.New

conceptsandtoolsareimplementedtodevelopworkingpatterntobealwaysup-to-dateandeffective.Plansare

setinadvancebeforeactuallypracticeandleadtoarchivegoalsastargeted.

Intermofpersonnelrecruitment,theCompanyselectsemployeesfrommultichannel’seffectiverecruitmentand

toprovideanopportunityonselection.Employees’incomebenefitstructureisappropriatelyadjustedtomeetwith

labormarket.Measuresforworkingperformanceareapplicablewithtransparencyandcompensationisawarded

fairlyandsuitableforknowledge,competency,andresponsibility.Positioningstructureisconsideredaccordingto

employees’competencybyofferingprogressiveopportunityindutytocreateleadershipandencouragementas

wellastodriveemployees’workingmotivationinconcrete.Theworkingenvironmentiswellimprovedtoensure

thesafeguardingoftheirlivesandhappiness.

Safety, Occupational Health and Working Environment

TheCompanysetspolicyofsafety,occupationalhealthandworkingenvironmenttocomplywithSafetyAct

thatisemphasizedonbuildingupsafetyconsciousinthejobasitisthemissionofallemployees.TheCompany

hasexaminesandimprovementofequipments,thelocationandbuildings,environmentincludingoftheappropriate

preparationoffireprevention.

55

INTER–COMPANY TRANSACTIONS

In2012,inter-companytransactionsoftheCompanyweremostlyadvertisingrelatedtradeaccountreceivables,

serviceincomes,andservicefeesamongtheCompany,subsidiariesandassociatedcompanies.Thesetransactions

areconsideredpartofthenormalcourseofbusinessthattheCompanydoeswithotherpartiesintheindustry.

ServiceratesareinaccordancewithnormalpracticeandarenotsetupinordertotransfertheCompany’sbenefits

torelatedparties.AsdescribedinthenotestofinancialstatementsNo.19.

Asforotherincomesandexpenseswhicharerelatedtoassetsorservicestorelatedparties,thecompanyhas

askedtheCompany’sBoardofDirectorsforapprovalintheBoardofDirectors’MeetingNo.173(1/2012)atJanuary

27th,2012asfollows:

•ThedetailsofassetsorservicesinpartofIncomewereapprovedbyBoardofDirectorstolimitto5,022,000.00Baht.

•Directorswhoarerelatedpersondonotattendthemeetinganddonotvoteontheissues.

Policy and tendency of excuting inter-company transactions in the future

TheCompany retains itsexistingpolicies forbusinessconduct.Therefore, themannerofservice-related

advertisingandotherconductedtransactionsisstillinconformitywiththegeneralbusinesspractice.

Inter-company transactions of the year 2012

1. The details of services

Method for setting the price:

Parking Fee Consultancy

Companies Relationship Rental Income Income Fee Income

(Baht) (Baht) (Baht)

1.FameLineCo.,Ltd.(Subsidiary) Co-Directors 2,318,400.00 97,200.00 300,000.00

2.IntegratedCommunicationCo.,Ltd. Co-Directors 1,243,200.00 12,000.00 180,000.00

(AssociatedCompany)

3.InterContinentalHoldingCo.,Ltd.

(AssociatedCompany) Co-Directors 48,000.00

4.PinnacleTravelCo.,Ltd. Co-Directors 60,000.00

5.ChailadadolCo.,Ltd. Co-Directors 36,000.00

6.ImageFirstCo.,Ltd. Co-Directors 168,000.00

7.SahaPathanapibulPlc. Co-Directors 207,579.16

Total 4,081,179.16 109,200.00 480,000.00

•RentalIncomeofimmovableassets/ParkingFeeIncome:usethemarketpricewhichwilldependonthe

location,conditionandtheuseofassets.

•ConsultancyFeeIncome:calculatefromcostplusthereasonableprofitwhichdependonthedifficultyand

scopeofservice.

56

2. Purchasing United Utility Co., Ltd’s shares from a waiver.

TheBoardofDirectors’meetingNo.180(9/2012)atDecember21st,2012,aresolutionwaspassedtoallow

theCompanytopurchasenewlyissuedsharesofUnitedUtilityCo.,Ltdofwhichashareownerpartlywaivedits

righttopurchase.

SincetheUnitedUtilityCo.,Ltdincreaseditsregisteredcapitalfrom34,230,000.00Bahtto350millionBaht,

andashareownerpartlywaiveditsrighttopurchasethenewshares.Therefore,UnitedUtilityCo.,Ltdallocates

the200,000newsharesatthepriceof100.00Bahtpershareinanamountof20,000,000.00Bahtwhichisthe

connectedtransactionasassetsorservicetype.Thisvoluneoftransactioniscomplywiththecomparison

betweenthecompensationvalueandFE’snettangibleassetasofSeptember30th,2012withresultinghighest

valueat2.39%,therelatedpersonisMrs.LaddaChokwatana,awaiveristhespouseofMr.BoonchaiChokwatanathe

ChairmanofFarEastDDBPlc.

57

EXPLANATION AND ANALYSIS REPORT

Analysis of Results of Operation

In2012FarEastDDBPublicCompanyLimitedanditssubsidiarieshadtotalgrossprofitfromrenderingof

servicesofBaht371.87million,adecreasingbyBaht9.07millionor2.38percentfrom2011,asaresultfromtotal

revenuesfromtherenderingofservicesandcommissionsthatdecreasedfromtheprioryear.NetprofitofBaht

122.06million,increasedbyBaht7.11millionor6.19percentfrom2011.

Total Revenues

Total revenues include revenues fromthe renderingofservicesandcommissions,dividend income,other

incomesandshareofprofitsfrominvestmentsusingtheequitymethod.Fortheyear2012,theCompanyandits

subsidiariesreportedtotalrevenuesofBaht772.16million,comparedwithBaht757.78millionof2011,anincreasing

byBaht14.38millionor1.90percent.

Details are as follows:

Revenue from rendering of services and commissions

In2012,theCompanyanditssubsidiariesearnedrevenuesfromtherenderingofservicesandcommissions

amountofBaht689.36millioncomparedwithBaht677.53millionin2011,anincreasingbyBaht11.83million

or1.75percent. Itwasmainlyresultedfromtotalrevenuesfromrenderingofservicesandcommissionsofthe

subsidiarieshad increasedfromthepreviousyear.This resulted fromtheSubsidiariesgainednumbersofnew

clientsandfromlargerspendingbyexistingclientsatlastquarteroftheyear.

Other Incomes

In2012,otherincomesconsistedofcashdiscount,interestincome,rentalincomeandgainondisposalof

assetsamountofBaht53.45million,decreased frompreviousyearbyBaht3.15millionor5.56percent.This

resultedfromthesubsidiariesreceivedlowercashdiscountandtradediscountfrommediaownersandsuppliers

andlowerofinterestincomefrompreviousyear.

Share of profits from investments using the equity method

In 2012, theCompany received a profit share from the investment in subsidiaries ofBaht 26.27million,

increasedbyBaht 5.63million or 27.28percent from2011. This resulted from thebetter performanceof the

subsidiaries.

Dividend Income

In2012,theCompanyearneddividendincomeofBaht3.07million,increasedbyBaht0.05millionor1.67

percentfrom2011.

Total Expenses

Totalexpensesconsistedofcostofservicesandcommissionsandsellingandadministrativeexpenses.In

2012,theCompanyanditssubsidiariesreportedtotalexpensesofBaht620.78million,increasedfromprevious

yearbyBaht19.29millionor3.21percent.

58

Details are as follows:

Cost of services and commissions

TheCompanyanditssubsidiarieshadcostofrenderingofservicesandcommissionsamountofBaht317.49

million.AnincreasingbyBaht20.91millionor7.05percentaccordingfromtheincreasingofrevenuefromthe

renderingofserviceandcommissionsoftheSubsidiariesinyear2012.

Selling and administrative expenses

In 2012, theCompany and its subsidiaries had total selling and administrative expenses ofBaht 303.30

millions. A decreasing by Baht 1.62 million or 0.53 percent mainly due to a decreasing of total selling and

administrativeexpensesoftheCompanyamountofBaht15.45millionor6.94percent.TheCompanyhasapolicy

tocontrolexpensessignificantly,ontheotherhand,theSubsidiarieshastheirsellingandadministrativeexpenses

increasedbyBaht13.83millionor16.79percent,thustheConsolidatedfinancialstatementshavebeenallowedin

thesellingandadministrativeexpensesdecreasebyonlyBaht1.62million.

Profit After Tax

TheCompanyanditssubsidiariesrealizedanetprofitaftertaxfortheyear2012ofBaht122.06million,

increasingbyBaht7.11millionor6.19percentfromthepreviousyear.

Netprofitattributedtoownersoftheparentin2012wasBaht116.51million,increasedbyBaht4.38million

or3.91percentfrom2011.

Netprofitattributedtonon-controllinginterestsin2012wasBaht5.55million,increasedbyBaht2.72million

or96.43percentfrom2011.

FINANCIAL POSITION

Assets

TheCompanyanditssubsidiarieshadtotalassetsattheendof2012inamountofBaht1,375.63million,

increasedbyBaht159.53millionor13.12percentfrom2011.Theassetsmainlycompriseofcashandcash

equivalents,tradeaccountreceivablesandcurrentinvestments.

Cash and Cash Equivalents

TheCompanyanditssubsidiarieshadcashandcashequivalentsattheendofyear2012inamountofBaht

277.82million,increasedfrompreviousyearbyBaht199.11millionor252.93percent,accordingfromtheCompany

anditssubsidiarieshasapolicytoinvestinshort-termdeposit,3monthsdepositwhichistheshort-termfund

managementofmiddle-yieldandlowrisk.

Trade Account Receivables

TheCompanyanditssubsidiarieshadtradeaccountreceivableinamountofBaht474.19million,increasedby

Baht218.91millionor4.15percentfrom2011.Accordingfromsomeofthesubsidiaries’sclientthathasincreased

advertisespendinginthelastquarter,sotheaccountsreceivableoftheCompanyanditssubsidiariesincreased

overthepreviousyear.

59

Current Investments

TheCompanyanditssubsidiarieshadcurrentinvestmentattheendof2012amountofBaht133.15million,

decreasedbyBaht140.64millionor51.37percentfrom2011.Thisresultedfromthelowerindepositfinancial

institutionsoftheCompanyanditssubsidiariesbutincreasedinshort-termdeposit,lessthan3months,asapart

ofcashandcashequivalent.

Liabilities

TheCompanyand itssubsidiarieshadtotal liabilitiesat theendof2012,amountofBaht475.01million,

increasedbyBaht72.99millionor18.16percentfrom2011.TheCompanyanditssubsidiarieshadtotaltrade

accountpayablesandotheraccountpayablesamountofBaht421.01million,increasedfrom2011byBaht77.49

millionor22.56percent.

ThecauseofanincreaseintradeaccountpayablesoftheConsolidatedfinancialstatementsresultedfrom

theSubsidiarieshasincreasedtheiradvertisespendinginthelastquarterofyear,whichresultedanincreasingof

tradeaccountpayablesformediaandproductionssupplier,wherethecostofproductionrisesaboverevenues

fromtherenderingofservicesandcommissions.

Corporate Income Tax Payable

In2012,theCompanyanditssubsidiarieshadadecreasingofincometaxbyBaht8.35millionor44.87,

resultedfromadecreasingoftotalrevenueofTheCompanyandthecorporateincometaxratereducedfrom30%

to23%

**OtherAccountPayableattributedtoemployeeandemployeebenefits,increasedfromtheprioryearbyBaht

10.66millionor30.06percentwhichresultedfromthebetterperformanceoftheSubsidiariesandtheSubsidiaries

paidremunerationtoemployeesroseupfrom2011.

TheCompanyanditssubsidiarieshadnon-currentliabilitiesattheendof2012amountofBaht43.74million,

increasedfrom2011byBaht3.86millionor9.67percentduetoemployeebenefitobligationswhichtheCompany

and itssubsidiariesestimated foremployeebenefits fromadoptingThaiAccountingStandard (TAS)No.19, it

coversemployeebenefitsandobligationeffectiveinthefinancialstatementsfortheyearend2011.

Shareholder’s Equity

TheCompanyanditssubsidiarieshadshareholder’sequityattheendof2012amountofBaht900.62million,

increasedfrom2011ofBaht86.53millionor10.63percent.ThisresultedfromtheCompany’sperformanceand

thehigherperformanceoftheSubsidiaries.

60

CASH FLOW STATEMENT ANALYSIS

TheconsolidatedstatementofcashflowfortheyearendedDecember31,2012issummarizedbelow:

(Unit : million Baht)

Cash and cash equivalents at December 31, 2011 78.72

NetChangeincashdueto

Operatingactivities 143.87

Investmentactivities 122.73

Financialactivities (67.50)

NetChangeincashandcashequivalents 199.10

Cash and Cash equivalents at December 31, 2012 277.82

Cashandcashequivalentsanincrease252.92percentfromBaht78.72millionattheendof2011toBaht

277.82millionattheendof2012.Themainreasonsforanincreasingincashpositionwere:

-IncreaseintradeaccountsreceivableandotheraccountsreceivablebyBaht18.28million.

-IncreaseintradeaccountspayableandotheraccountspayablebyBaht77.40million

-DecreaseincurrentinvestmentofBaht140.64million.

61

REPORT OF THE BOARD OF DIRECTORS’ RESPONSIBILITIES FOR THE COMPANY’S FINANCIAL STATEMENTS TheCompany’sFinancialStatementshavebeencompiledinlinewiththepoliciesoftheBoardofDirectors

andinaccordancewithgenerallyacceptedaccountingprinciples.TheCompany’saccountingrecordswerecarefully

keptanddiscretionwasappliedinthepreparationoftheFinancialStatementstoaccuratelyreflectthefinancial

positionandperformanceoftheCompany.

TheBoardofDirectorsrecognizestheimportanceofthequalityoftheFinancialStatements.Areviewof

thefinancialdataandsufficientadditionalinformationisprovidedintheNotestotheFinancialStatementsandthe

accompanyingExplanationandAnalysisReportforthebenefitofshareholdersandinvestorswhoseekaccesstothese.

Toensure thequalityof theFinancialStatementsanAuditCommitteewasestablished,comprising

independentandnon-executivedirectors.TheircommentsareshownintheAuditCommittee’sReportincluded

inthisAnnualReport.

TheCompany’sefficientadministrativestructure,internalauditingsystem,andresultsofthecertifiedauditors

havemadetheBoardofDirectorsconfidentthattheFinancialStatementsoftheCompanydatedDecember31,

2012showanessentiallyaccuratepictureofitsfinancialposition,performanceandcashflow,inaccordancewith

generallyacceptedaccountingprinciples.

(Mr.BoonchaiChokwatana) (Mrs.ChailadaTantivejakul)

Chairman ActingManagingDirector

62

FINANCIAL STATEMENT & CONSOLIDATED FINANCIAL STATEMETNS

63

Auditor’s Report

TotheShareholdersandtheBoardofDirectorsofFarEastDDBPublicCompanyLimited:

I have audited the accompanying consolidated and separate financial statements of Far EastDDBPublicCompany

Limitedanditssubsidiaries,andofFarEastDDBPublicCompanyLimited,respectively,whichcomprisetheconsolidated

andseparatestatementsoffinancialpositionasatDecember31,2012,theconsolidatedandseparatestatementsof

comprehensive income, changes in equity and cash flows for the year then ended, and a summary of significant

accountingpoliciesandotherexplanatorynotes.

Management’s Responsibility for the Financial Statements

Managementisresponsibleforthepreparationandfairpresentationofthesefinancialstatementsinaccordancewith

ThaiFinancialReportingStandards,andforsuchinternalcontrolasmanagementdeterminesisnecessarytoenablethe

preparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’s Responsibility

Myresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonmyaudit.Iconductedmyauditin

accordancewithThaiStandardsonAuditing.ThosestandardsrequirethatIcomplywithethicalrequirementsandplan

andperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterial

misstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancial

statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of

materialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,the

auditorconsidersinternalcontrolrelevanttotheentity’spreparationandfairpresentationofthefinancialstatements

inordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressing

anopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessof

accountingpoliciesusedandthereasonablenessofaccountingestimatesmadebymanagement,aswellasevaluating

theoverallpresentationofthefinancialstatements.

IbelievethattheauditevidenceIhaveobtainedissufficientandappropriatetoprovideabasisformyauditopinion

Opinion

Inmyopinion,theconsolidatedandseparatefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,

theconsolidatedandseparatefinancialpositionasatDecember31,2012andtheconsolidatedandseparatefinancial

performanceandcashflowsfortheyearthenendedofFarEastDDBPublicCompanyLimitedanditssubsidiaries,and

ofFarEastDDBPublicCompanyLimited,respectively,inaccordancewithThaiFinancialReportingStandards.

(VichaiRuchitanont)

CertifiedPublicAccountant

RegistrationNumber4054

ANSAuditCompanyLimited

Bangkok,February27,2013

64

The accompanying notes are an integral part of the financial statements.

Unit:Baht

Consolidatedfinancialstatements Separatefinancialstatements

Notes 2012 2011 2012 2011

ASSETS

CurrentAssets

Cashandcashequivalents 4 277,824,975.02 78,719,913.94 111,838,051.51 24,661,744.53

Currentinvestments 5 133,148,624.25 273,793,155.44 133,148,624.25 193,793,155.44

Tradeandotherreceivables-net 6,19 474,191,839.78 455,284,788.45 298,588,542.90 339,884,334.06

Unbilledcontractrevenue 17,135,066.62 1,236,132.57 4,937,656.32 1,181,198.92

TotalCurrentAssets 902,300,505.67 809,033,990.40 548,512,874.98 559,520,432.95

Non-currentAssets

Pledgeddepositatfinancialinstitution 18.1 5,513,500.00 5,998,021.00 4,876,500.00 3,998,021.00

Investmentsinassociatedcompanies-net 7 96,590,310.13 80,050,134.29 12,063,132.07 12,063,132.07

Investmentsinsubsidiarycompanies-net 8 - - 3,459,400.00 3,459,400.00

Otherlong-terminvestments-net 9 175,423,551.75 121,575,642.78 175,423,551.75 121,575,642.78

Property,plantandequipment-net 10 195,571,153.68 199,220,026.10 183,401,468.04 182,565,629.86

Othernon-currentassets 233,881.62 229,612.46 102,376.64 102,376.64

TotalNon-currentAssets 473,332,397.18 407,073,436.63 379,326,428.50 323,764,202.35

Total Assets 1,375,632,902.85 1,216,107,427.03 927,839,303.48 883,284,635.30

FAR EAST DDB PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENTS OF FINANCIAL POSITIONAS AT DECEMBER 31, 2012 AND 2011

65


Unit:Baht


Notes 2012 2011 2012 2011

LIABILITIES AND SHAREHOLDERS’ EQUITY

CurrentLiabilities

Tradeandotherpayables 11,19 421,005,156.95 343,518,216.83 230,641,651.73 231,642,145.26

Currentincometaxpayables 10,262,400.48 18,615,281.18 6,296,058.99 12,727,920.40

TotalCurrentLiabilities 431,267,557.43 362,133,498.01 236,937,710.72 244,370,065.66

Non-currentliabilities

Employeebenefitobligations 2,12 43,534,120.00 39,676,567.00 31,276,384.00 28,632,551.00

Othernon-currentliabilities 19 206,000.00 206,000.00 495,500.00 495,500.000

TotalNon-CurrentLiabilities 43,740,120.00 39,882,567.00 31,771,884.00 29,128,051.00

TotalLiabilities 475,007,677.43 402,016,065.01 268,709,594.72 273,498,116.66

Shareholders’Equity

Sharecapital

Authorizedsharecapital

Commonstocks7,500,000shares,Baht10parvalue 75,000,000.00 75,000,000.00 75,000,000.00 75,000,000.00

Issuedandpaid-upsharecapital

Commonstocks7,500,000shares,Baht10parvalue 75,000,000.00 75,000,000.00 75,000,000.00 75,000,000.00

Premiumoncommonstocks 95,000,000.00 95,000,000.00 95,000,000.00 95,000,000.00

Retainedearnings

Appropriated

Legalreserve 13 7,500,000.00 7,500,000.00 7,500,000.00 7,500,000.00

Unappropriated 14 579,414,094.94 530,405,318.41 359,757,684.65 345,087,004.50

Othercomponentsofshareholders’equity 121,872,024.11 87,199,514.14 121,872,024.11 87,199,514.14

TotalequityattributabletoequityholdersoftheCompany 878,786,119.05 795,104,832.55 659,129,708.76 609,786,518.64

Non-controllinginterests 21,839,106.37 18,986,529.47 - -

TotalShareholders’Equity 900,625,225.42 814,091,362.02 659,129,708.76 609,786,518.64

Total Liabilities and Shareholders’ Equity 1,375,632,902.85 1,216,107,427.03 927,839,303.48 883,284,635.30

FAR EAST DDB PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENTS OF FINANCIAL POSITIONAS AT DECEMBER 31, 2012 AND 2011

66

3

Revenue from rendering of services and commissions 19 689,364,454.78 677,525,653.43 434,841,123.07 488,623,868.78

Costofservicesandcommissions 16,19 (317,493,582.16) (296,582,210.78) (190,519,422.67) (209,475,458.99)

Gross profit 371,870,872.62 380,943,442.65 244,321,700.40 279,148,409.79

Dividendincomes 7,8 3,070,514.15 3,020,081.00 30,100,818.15 25,774,321.00

Otherincomes 15,19 53,450,226.26 56,595,793.81 31,898,471.04 31,504,255.85

Profitbeforeexpenses 428,391,613.03 440,559,317.46 306,320,989.59 336,426,986.64

Servicesandadministrativeexpenses 2,16,19 (303,297,688.58) (304,916,498.38) (207,095,546.56) (222,543,687.60)

Shareofprofitofassociates 7 26,273,479.84 20,638,032.70 - -

Profitbeforeincometaxexpense 151,367,404.29 156,280,851.78 99,225,443.03 113,883,299.04

Incometaxexpense 17 (29,303,050.86) (41,328,287.55) (17,054,762.88) (28,070,201.49)

Profit for the year 122,064,353.43 114,952,564.23 82,170,680.15 85,813,097.55

Othercomprehensiveincome:

Gainonremeasuringavailable-for-saleinvestments 9 34,672,509.97 14,638,004.68 34,672,509.97 14,638,004.68

Othercomprehensiveincomefortheyear 34,672,509.97 14,638,004.68 34,672,509.97 14,638,004.68

Total comprehensive income for the year 156,736,863.40 129,590,568.91 116,843,190.12 100,451,102.23

Profitattributableto

EquityholdersoftheCompany 116,508,776.53 112,124,249.27 82,170,680.15 85,813,097.55


122,064,353.43 114,952,564.23 82,170,680.15 85,813,097.55

Totalcomprehensiveincomeattributableto

EquityholdersoftheCompany 151,181,286.50 126,762,253.95 116,843,190.12 100,451,102.23


156,736,863.40 129,590,568.91 116,843,190.12 100,451,102.23

Earningspershare 3

Basicearningspershare

ProfitattributabletoequityholdersoftheCompany(Baht) 15.53 14.95 10.96 11.44

Weightedaveragenumberofordinaryshares(shares) 7,500,000 7,500,000 7,500,000 7,500,000


Unit:Baht


Notes 2012 2011 2012 2011

FAR EAST DDB PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENTS OF COMPREHENSIVE INCOMEFOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

67

FAR EAST DDB PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITYFOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011


Unit: Baht

Consolidated financial statements

Equity attributable to equity holders of the Company

Other components

of shareholders’

Retained earnings equity

Other

comprehensive

Share capital income Total

Issued and Premium on Appropriated Available-for-sale Non-controlling shareholders’

Notes paid-up common stocks to legal reserve Unappropriated investments Total interests equity

BalanceatJanuary1,2011beforeadjustment 75,000,000.00 95,000,000.00 7,500,000.00 521,023,199.66 72,561,509.46 771,084,709.12 19,963,325.99 791,048,035.11

Effectsofchangesinaccountingpolicies 2 - - - (42,742,130.52) - (42,742,130.52) (1,642,711.48) (44,384,842.00)

BalanceatJanuary1,2011afteradjustment 75,000,000.00 95,000,000.00 7,500,000.00 478,281,069.14 72,561,509.46 728,342,578.60 18,320,614.51 746,663,193.11

Changesinshareholders’equityfortheyear:

Dividend 14 - - - (60,000,000.00) - (60,000,000.00) (2,162,400.00) (62,162,400.00)

Totalcomprehensiveincomefortheyear - - - - 112,124,249.27 14,638,004.68 126,762,253.95 2,828,314.96 129,590,568.91

BalanceatDecember31,2011 75,000,000.00 95,000,000.00 7,500,000.00 530,405,318.41 87,199,514.14 795,104,832.55 18,986,529.47 814,091,362.02


Dividend 14 - - - (67,500,000.00) - (67,500,000.00) (2,703,000.00) (70,203,000.00)

Totalcomprehensiveincomefortheyear - - - 116,508,776.53 34,672,509.97 151,181,286.50 5,555,576.90 156,736,863.40

BalanceatDecember31,2012 75,000,000.00 95,000,000.00 7,500,000.00 579,414,094.94 121,872,024.11 878,786,119.05 21,839,106.37 900,625,225.42

68

FAR EAST DDB PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITYFOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011


Unit: Baht

Separate financial statements

Other components of

Retained earnings shareholders’ equity

Other

comprehensive

income Total

Share capital Premium on Appropriated Available-for-sale Shareholders’

Notes Issued and paid-up common stocks to legal reserve Unappropriated investments equity

BalanceatJanuary1,2011beforeadjustment 75,000,000.00 95,000,000.00 7,500,000.00 346,404,583.95 72,561,509.46596,466,093.41

Effectsofchangesinaccountingpolicies 2 - - - (27,130,677.00) -(27,130,677.00)

BalanceatJanuary1,2011afteradjustment 75,000,000.00 95,000,000.00 7,500,000.00 319,273,906.95 72,561,509.46569,335,416.41


Dividend 14 - - - (60,000,000.00) -(60,000,000.00)

Totalcomprehensiveincomefortheyear - - - 85,813,097.55 14,638,004.68100,451,102.23

BalanceatDecember31,2011 75,000,000.00 95,000,000.00 7,500,000.00 345,087,004.50 87,199,514.14609,786,518.64


Dividend 14 - - - (67,500,000.00) -(67,500,000.00)

Totalcomprehensiveincomefortheyear - - - 82,170,680.15 34,672,509.97116,843,190.12

BalanceatDecember31,2012 75,000,000.00 95,000,000.00 7,500,000.00 359,757,684.65121,872,024.11659,129,708.76

69

FAR EAST DDB PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

Unit:Baht


2012 2011 2012 2011

Cash flows from operating activities:

Profitbeforeincometaxexpenses 151,367,404.29 156,280,851.78 99,225,443.03 113,883,299.04

Adjustmentstoreconcileprofitbeforeincometaxexpense

tonetcashprovidedby(usedin)operatingactivities

Depreciation 14,606,518.05 16,489,947.48 9,120,817.87 10,973,318.74

Shareofprofitofassociates (26,273,479.84) (20,638,032.70) - -

Estimationofemployeebenefitobligations 3,857,553.00 4,393,485.00 2,643,833.00 3,167,846.00

Lossonimpairmentofinvestmentinsubsidiarycompany - - - 2,599,930.00

Lossonimpairmentofotherlong-terminvestment 824,601.00 233,109.50 824,601.00 233,109.50

Gainonsalesofotherlong-terminvestments (100,800.00) - (100,800.00) -

Gainondisposalofequipment (2,860,176.58) (819,559.17) (944,293.73) (817,756.01)

Gainonexchangerate (247,313.91) (92,893.19) (240,153.17) (92,961.66)

Dividendincomefromsubsidiaryandassociatedcompany - - (27,030,304.00) (22,754,240.00)

Dividendincomefromotherlong-terminvestments (3,070,514.15) (3,020,081.00) (3,070,514.15) (3,020,081.00)

Profitfromoperationsbeforechangesofoperating

assetsandliabilities 138,103,791.86 152,826,827.70 80,428,629.85 104,172,464.61

Changeinoperatingassets(increase)decrease

Tradeandotherreceivables (18,284,671.13) (26,187,535.98) 41,636,744.33 (74,816,719.60)

Unbilledcontractrevenue (15,898,934.05) 1,892,986.16 (3,756,457.40) 1,705,311.35

Pledgeddepositatfinancialinstitution 484,521.00 (3,072,521.00) (878,479.00) (3,072,521.00)

Othernon-currentassets (4,269.16) - - -


70

FAR EAST DDB PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESSTATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011

Unit:Baht


2012 2011 2012 2011

Changeinoperatingliabilitiesincrease(decrease)

Tradeandotherpayables 77,404,060.12 (29,182,479.93) (1,083,373.53) (2,298,295.23)

Paymentforemployeebenefitobligations - (1,665,972.00) - (1,665,972.00)

Cashprovidedbyoperatingactivities 181,804,498.64 94,611,304.95 116,347,064.25 24,024,268.13

Incometaxpaid (37,930,197.85) (33,331,158.59) (23,486,624.29) (21,065,498.42)

Incometaxrefunded - 439,874.28 - -

Netcashprovidedbyoperatingactivities 143,874,300.79 61,720,020.64 92,860,439.96 2,958,769.71

Cash flows from investing activities

Currentinvestment(increase)decrease 140,644,531.19 (47,359,764.44) 60,644,531.19 12,640,235.56

Dividendincomefromsubsidiaryandassociatedcompany 9,733,304.00 8,916,640.00 27,030,304.00 22,754,240.00

Dividendincomefromotherlong-terminvestments 3,070,514.15 3,020,081.00 3,070,514.15 3,020,081.00

Acquisitionofequipment (11,001,037.64) (12,034,696.61) (10,000,043.06) (11,510,095.45)

Proceedsonsalesofequipment 2,986,448.59 819,626.17 1,070,560.74 817,757.01

Acquisitionsofotherlong-terminvestment (20,000,000.00) - (20,000,000.00) -

Dividendpaymentfornon-controllinginterests (2,703,000.00) (2,162,400.00) - -

Netcashprovidedby(usedin)investingactivities 122,730,760.29 (48,800,513.88) 61,815,867.02 27,722,218.12

Cash flow from financing activities

Proceedsonshort-termloanfromrelatedparty - 270,000.00 - -

Repaymentonshort-termloanfromrelatedparty - (270,000.00) - -

Dividendpayments (67,500,000.00) (60,000,000.00) (67,500,000.00) (60,000,000.00)

Netcashusedinfinancingactivities (67,500,000.00) (60,000,000.00) (67,500,000.00) (60,000,000.00)

Netincrease(decrease)incashandcashequivalents 199,105,061.08 (47,080,493.24) 87,176,306.98 (29,319,012.17)

Cashandcashequivalentsatbeginningoftheyears 78,719,913.94 125,800,407.18 24,661,744.53 53,980,756.70

Cashandcashequivalentsatendoftheyears 277,824,975.02 78,719,913.94 111,838,051.51 24,661,744.53


71

FAR EAST DDB PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIESNOTES TO THE FINANCIAL STATEMENTSAS AT DECEMBER 31, 2012 AND 2011

1. GENERAL INFORMATION

FarEastDDBPublicCompanyLimited(“theCompany”)wasregisteredinThailandinaccordancewiththe

provisionoftheCivilandCommercialCodeonFebruary12,1964andconvertedtobeaPublicCompanyon

May12,1994.Itsofficeislocatedat465/1-467SriAyudhyaRoad,Thungphayathai,Ratchathewi,Bangkok.

TheCompany’smainbusinessesareasanadvertisingagentorbroker,andinproductionandadvertising

relatedservices.

FameLineCompanyLimitedwasregisteredonJanuary25,1989.Itsmainbusinessesareasanadvertising

agentorbroker,andinproductionandadvertisingrelatedservices.

RappCollins(Thailand)CompanyLimitedwasregisteredonMarch14,2003.Itsmainbusinessesareasan

advertisingagentorbroker,andinproductionandadvertisingrelatedservices.

2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS AND

CONSOLIDATED FINANCIAL STATEMENT PRESENTATION

TheaccompanyingfinancialstatementsarepreparedinaccordancewithThaiFinancialReportingStandards

(“TFRS”)includingrelatedinterpretationsandguidelinespromulgatedbytheFederationofAccounting

Professions(“FAP”)inconformitywithgenerallyacceptedaccountingprinciplesinThailand.

Thepresentationofthefinancialstatementshasbeenmadeincompliancewiththestipulationsofthe

Notificationof theDepartmentofBusinessDevelopmentdatedSeptember28,2011, issuedunder the

AccountingActB.E.2543.

TheaccompanyingfinancialstatementshavebeenpreparedintheThailanguageandexpressedinThai

Baht.Suchfinancialstatementshavebeenpreparedfordomesticreportingpurposes.Fortheconvenience

ofthereadersnotconversantwiththeThailanguage,anEnglishversionofthefinancialstatementshas

beenprovidedbytranslatingfromtheThaiversionofthefinancialstatements.

ThepreparationofthefinancialstatementsinconformitywithThaiFinancialReportingStandards(“TFRS”)

requiresmanagementtomakejudgments,estimatesandassumptionsthataffecttheapplicationofpolicies

andreportedamountsofassets,liabilities,incomeandexpenses.Theestimatesandassociatedassumptions

arebasedonhistoricalexperienceandvariousotherfactorsthatarebelievedtobereasonableunderthe

circumstances,theresultsofwhichformthebasisofmakingthe judgmentsaboutcarryingamountsof

assetsandliabilitiesthatarenotreadilyapparentfromothersources.Subsequentactualresultsmaydiffer

fromtheseestimates.

72

Theestimates andunderlyingassumptionsare reviewedonanongoingbasis.Revisions to accounting

estimatesarerecognizedintheperiodinwhichtheestimateisrevised,iftherevisionaffectsonlythatperiod,

andintheperiodoftherevisionandfutureperiods,iftherevisionaffectsbothcurrentandfutureperiods.

TheconsolidatedfinancialstatementsrelatedtotheCompanyanditssubsidiaries(togetherreferredtoas

the“Group”)andtheCompany’sinterestintheassociate.

DetailsoftheCompany’ssubsidiarieswereasfollows:

Subsidiaries BusinessType Ownershipinterest(%)

FameLineCompanyLimited AdvertisingAgency 86.48

RappCollins(Thailand)Co.,Ltd. AdvertisingAgency 52.00

Subsidiariesarefullyconsolidated,beingthedateonwhichtheCompanyobtainscontrol,andcontinueto

beconsolidateduntilthedatewhensuchcontrolceases.

Thesubsidiaries’financialstatementsarepreparedusingthesamesignificantaccountingpoliciesasthe

Company.

SignificantintercompanytransactionsandbalancesbetweentheCompanyandthesubsidiarieshavebeen

eliminated.

The changes in accounting policies as at January 1, 2011

Intheyear2011,theGrouphasadoptednewandrevisedTFRSwhichsuchtransitionaffectedthefinancial

statementsreflectedfromtheadoptionofTASNo.19“EmployeeBenefits”.

New and revised Thai Financial Reporting Standards not yet effective

TheGrouphasnotyetadoptedthenewandrevisedThaiFinancialReportingStandardsasfollows:

a) ThaiAccountingStandards(TAS),ThaiFinancialReportingStandards(TFRS),ThaiInterpretation(TI)and

guidelineswhichareeffectiveforthefinancialstatementsfortheperiodbeginningonorafterJanuary

1,2013asfollows:

TAS/TFRS/TI/FAP’s Announcement Topic

TAS12 IncomeTaxes

TAS20(revised2009) AccountingforGovernmentGrantsand

DisclosuresofGovernmentAssistance

TAS21(revised2009) TheEffectsofChangesinForeign

ExchangeRate

TFRS8 OperatingSegments

TI10 GovernmentAssistance–NoSpecific

RelationtoOperatingActivities

TI21 IncomeTaxes–RecoveryofRevalued

Non-DepreciableAssets

73

TAS/TFRS/TI/FAP’s Announcement Topic

TI25 IncomeTaxes–ChangesintheTaxStatus

ofanEnterpriseoritsShareholders

No.34/2012 AccountingGuidanceforTransferand

TransferredofFinancialAssets

The management of the Group has assessed the effects of these TAS, TFRS, TI and guideline, and

believes that theywillnothaveanysignificant impacton the financialstatements for theyear inwhich

theyareinitiallyappliedexceptforTASasfollows:

TAS 12 – Income taxes

The main change introduced by TAS 12 is the requirement to account for deferred tax liabilities and

assetsintheGroupfinancialstatements.Deferredtaxassetsandliabilitiesaretheamountsofincometaxes

recoverableandpayable, respectively, in futureperiods in respectof temporarydifferencesbetweenthe

carryingamountoftheliabilityorassetinthestatementoffinancialpositionandtheamountattributedto

thatliabilityorassetfortaxpurposes;andthecarryforwardofunusedtaxlosses.Currently,theGroupdoes

notrecognisedeferredtaxinthefinancialstatements.

The Group will adopt TAS 12 with effective from January 1, 2013. The effects of the change will be

recognisedretrospectivelyinthefinancialstatementsandthestatementoffinancialpositionasatDecember

31,2012andJanuary1,2012willbeadjustedaccordingly.Themanagementestimatesthattheimpacton

thestatementoffinancialpositionasatDecember31,2012andJanuary1,2012willbeasfollows:

Unit:Baht

Consolidatedfinancialstatements

December31,2012 January1,2012

The Statements of financial position

Increaseindeferredtaxassets 14,116,343.56 14,423,829.56

Increaseindeferredtaxliabilities 27,811.77 -

Increaseinretainedearnings 15,088,531.49 14,423,829.56

Increaseinshareholders’equity 14,646,560.81 13,996,735.49

Increaseinnon-controllinginterest 441,970.98 427,094.07

Increaseintotalshareholders’equity 15,088,531.79 14,423,829.56

Unit:Baht

Separatefinancialstatements

December31,2012 January1,2012

The Statements of financial position

Increaseindeferredtaxassets 12,477,403.27 11,823,716.47

Increaseindeferredtaxliabilities - -

Increaseinretainedearnings 12,477,403.27 11,823,716.47

Increaseinshareholders’equity 12,477,403.27 11,823,716.47

74

Unit:Baht

Consolidated Separate

financialstatements financialstatements

The statements of comprehensive income for

the year ended December 31, 2012

Profitfortheyear

Theamountbeforeadjustment 151,367,404.29 99,225,443.03

Adjusteddeferredtax 664,702.23 653,686.80

Theamountafteradjustment 152,032,106.52 99,879,129.83

Earningspershare

Increasingbasicearningspershare(Bahtpershare) 0.09 0.09

b) ThaiFinancialReportingInterpretations(TFRI)andTIwhichareeffectiveforthefinancialstatements

fortheperiodbeginningonorafterJanuary1,2014asfollows:

TFRI/TI Topic

TFRI4 DeterminingwhetheranArrangementcontainsaLease

TFRI12 ServiceConcessionArrangements

TFRI13 CustomerLoyaltyProgrammes

TI29 ServiceConcessionArrangements:

Disclosures

Themanagement of theGroup is assessing the impacts of these interpretations on the financial

statementsfortheyearinwhichtheyareinitiallyapplied.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Revenues and Expenses Recognition

Revenuesandcostsfromtherenderingofservicesinadvertisingagentorbrokerarerecognizedonan

accrualbasis.

Revenuesandcostsfromtherenderingofservicesinproductionarerecognizedbyreferencetothestage

ofcompletion.

Discountreceivedarerecognizedonacashbasis.

Otherincomesandexpensesareaccountedonanaccrualbasis.

Cash and cash equivalents

Cashandcashequivalentscomprisecashonhand,cheques in transitanddepositsatbankand fixed

depositwithmaturityperiodnotoverthan3monthsexceptforcashatbanksheldascollateral.

75

Current Investments

Current investmentscompriseof fixeddepositsat financial institutionsandmarketableequitysecurities.

Currentinvestmentsinmarketableequitysecurities,whichareclassifiedastradingsecurities,arestatedat

fairvalue.Thefairvalueofinvestmentsinunitfundsiscomputedbyusingthenetassetvalueoftheunits

fundattheendoftheyear.Therevaluationsoftradingsecuritiesareaccountedforasthenetunrealized

gainsorlossesinthestatementofcomprehensiveincome.

Currentinvestmentsdisposedarecomputedbytheweightedaveragemethod.

Trade Receivable

Tradereceivablesarestatedatcostnetofallowancefordoubtfulaccounts.Allowancefordoubtfulaccounts

isanestimateofthoseamountswhichmayprovetobeuncollectiblebasedonareviewofthecurrent

statusofexistingaccountsreceivables.

Unbilled Contract Revenue

Unbilledcontractrevenue,representingunbilledcostofrenderingofservices,isstatedatcost.

Investments - in subsidiaries and associated companies

Investmentsinsubsidiariesandassociatedcompaniesintheseparatefinancialstatementsareaccounted

forbyusingthecostmethodnetfromimpairmentofinvestments.

Investmentsinassociatedcompaniesintheconsolidatedfinancialstatementsareaccountedforbyusing

theequitymethod.

Other Long-term Investments

Long-term investmentscompriseofmarketableequitysecurities,non-marketableequitysecuritiesand

held-to-maturitydebtsecurities.

Long-terminvestmentsinmarketableequitysecurities,whichareclassifiedasavailable-for-salesecurities,

arestatedatfairvalue.Therevaluationsofavailable-for-salesecuritiesarerecognizedinothercomprehensive

income.Available-for-salesecurities,whichareimpaired,arestatedatcostlessallowanceforimpairment

ofinvestments.

Long-terminvestmentsinnon-marketableequitysecurities,whichareclassifiedasgeneralinvestment,are

statedatcostlessallowanceforimpairmentofinvestments.

Long-terminvestmentsindebtsecurities,whichareclassifiedasheld-to-maturitysecurities,arestatedat

amortizedcost.

Property, Plant and Equipment and Depreciation

Property,plantandequipmentarestatedatcostlessaccumulateddepreciation.Depreciationiscomputed

bythestraight-linemethodbasedontheestimatedusefullivesoftheassetsof20yearsforbuildingsand

5yearsforbuildingimprovements,equipmentandvehicles.

NodepreciationisprovidedontheGroup’landandconstructioninprogress.

Impairment

TheGroupassessesattheendofeachyearwhetherthereisanyindicationthatanassetmaybeimpaired.

Ifanysuchindicationexists,theGroupwillestimatetherecoverableamountoftheasset.Ifthecarrying

amountofanassetexceedsitsrecoverableamount,theGroupwillrecognizetheimpairmentlossasan

expenseinthestatementofcomprehensiveincome.

76

Income tax expense

Income tax expense for the year is calculated from theprofit for the year adjustedby non-deductible

expensesornon-taxableincomeandmultipliedbytheincometaxratestipulatedbytheRevenueCode.

(Thetaxratefortheyear2012is23%andfortheyear2011is30%).

Employee benefits

Short-term benefits

TheGrouprecognizessalaries,wages,bonusandsocialsecuritycontributionasexpensesonanaccrual

basis.

Post-employment benefits – defined benefit plan

Theemployeebenefitobligationsinrelationtotheseverancepaymentunderthelaborlawarerecognized

asachargetoresultsofoperationsovertheemployee’sserviceperiod.Itiscalculatedbytheestimation

oftheamountof futurebenefit tobeearnedbytheemployee inreturnfortheserviceprovidedtothe

Groupthroughtheserviceperioduptotheretirementageandtheamountisdiscountedtodeterminethe

presentvalue.Thereferencediscountrateistheyieldrateofgovernmentbondsasatthereportingdate.The

calculationisbasedontheactuarialtechniqueusingtheProjectedUnitCreditMethod.

Whentheactuarialassumptionsarechanged,theGrouprecognizedactuarialgainsorlossesinthe

statementofcomprehensiveincomefortheperiodinwhichtheyarise.

Basic earnings per share

Basicearningspersharearecomputedbydividingprofitfortheyearbytheweightedaveragenumberof

commonsharesoutstandingduringtheyear.

4. CASH AND CASH EQUIVALENTS

CashandcashequivalentsasatDecember31,2012and2011areasfollow:

Unit:Baht


2012 2011 2012 2011

Cashonhand 51,161.73 99,930.40 23,642.08 45,660.33

Depositsatbanks-currentaccounts 239,016.49 940,886.34 8,000.00 361,842.73

-savingsaccounts 83,759,447.86 62,739,477.12 28,283,762.90 15,465,920.47

Fixeddepositsnotover3months 193,775,348.94 14,939,620.08 83,522,646.53 8,788,321.00

Totalcashandcashequivalents 277,824,975.02 78,719,913.94 111,838,051.51 24,661,744.53

77

6. TRADE AND OTHER RECEIVABLES – NET

TradeandotherreceivablesasatDecember31,2012and2011consistedof:

Unit:Baht


2012 2011 2012 2011

Tradereceivables

Tradereceivable-Relatedparties 238,157,615.84 172,428,536.45 111,973,707.18 129,177,590.54

Tradereceivable-others 237,951,028.13 276,968,901.16 187,945,989.71 205,063,589.07

Postdatedcheques 18,829.88 328,931.08 18,829.88 275,891.08

TotalTradereceivables 476,127,473.85 449,726,368.69 299,938,526.77 334,517,070.69

LessAllowancefordoubtfulaccounts (8,627,176.79) (8,627,176.79) (5,034,263.84) (5,034,263.84)

TotalTradereceivables-net 467,500,297.06 441,099,191.90 294,904,262.93 329,482,806.85

Otherreceivables:

Accruedincome 1,103,061.35 1,293,008.47 937,418.10 1,127,727.38

Prepaidexpenses 1,842,045.70 6,348,967.78 917,052.13 4,648,329.08

Advances 318,384.56 353,678.15 223,384.56 318,678.15

Others 3,428,051.11 6,189,942.15 1,606,425.18 4,306,792.60

Totalotherreceivables 6,691,542.72 14,185,596.55 3,684,279.97 10,401,527.21

Tradeandotherreceivables-net 474,191,839.78 455,284,788.45 298,588,542.90 339,884,334.06

5. CURRENT INVESTMENTS

CurrentinvestmentsasatDecember31,2012and2011consistedof:

Unit:Baht

Consolidatedfinancialstatements Separatefinancialstatements InterestRate%perannum

2012 2011 2012 2011 2012 2011

Fixeddepositsat

financialinstitutions 133,148,624.25 40,454,549.97 133,148,624.25 40,454,549.97 3.0-3.75 4.20-4.35

Billofexchangesatfinancialinstitutions

Maturitydate

- notover3months - 178,338,605.47 - 98,338,605.47 - 2.72-3.65

- over3-9months - 55,000,000.00 - 55,000,000.00 - 3.85-4.25

Total 133,148,624.25 273,793,155.44 133,148,624.25 193,793,155.44

78

TradereceivablescanbeclassifiedbyageanalysisasatDecember31,2012and2011asfollow:

Unit:Baht


2012 2011 2012 2011

Tradereceivables-Subsidiaries

Currentandnotover3months - - - 822,400.00

Tradereceivables-Associatedcompanies

Currentandnotover3months 5,254,856.66 4,409,755.43 5,254,856.66 4,409,755.43

Tradereceivables-Relatedcompanies


Over3-12months 8,636,301.70 5,490,142.99 8,636,301.70 5,431,142.99

Tradereceivables-others


Over3-12months 15,233,215.05 3,009,601.80 15,118,930.00 2,848,233.16

Over12months 9,565,896.79 46,887,027.58 5,034,263.84 43,115,853.42

Postdatedcheques 18,829.88 328,931.08 18,829.88 275,891.08

TotalTradereceivables 476,127,473.85 449,726,368.69 299,938,526.77 334,517,070.69

LessAllowancefordoubtfulaccounts (8,627,176.79) (8,627,176.79) (5,034,263.84) (5,034,263.84)

Tradereceivables-net 467,500,297.06 441,099,191.90 294,904,262.93 329,482,806.85

AsatDecember31,2011thetradereceivableswhichareover12monthsamountingtoBaht38.08million

intheconsolidatedandseparatefinancialstatement,representeddebtorsinthegovernmentsectors.The

Companyhadcollectedthesedebtors.

7. INVESTMENTS IN ASSOCIATED COMPANIES – NET

Investmentsinassociatedcompanies–netasatDecember31,2012and2011,anddividendincomefrom

theinvestmentduringtheyearsendedDecember31,2012and2011,consistedof:

TheCompanyrecordedshareofprofitsfrominvestmentsinassociatedcompaniesforusingequitymethod

amounting toBaht 1.79million andBaht 1.33million in the consolidated statements of comprehensive

incomefortheyearsendedDecember31,2012and2011,respectivelybyusingmanagementreportswhich

havenotyetbeenauditedorreviewedbyanauditor.

Inter Continental Holding Co.,Ltd. Investment Shareholding 8,000 8,000 40.00 40.00 1,908 1,644 3,200 3,200 - -

Integrated Communication Co.,Ltd. Public Relation Shareholding 3,500 3,500 40.00 40.00 14,974 13,556 1,400 1,400 2,100 2,100

Myanmar Spa-Today-Far East Ltd. Agency Shareholding $83.33 $83.33 30.00 30.00 3,374 3,517 797 797 - -

Spa-Today-Far East (Thailand) Co.,Ltd. Agency Shareholding 1,000 1,000 30.00 30.00 1,629 1,004 - - 300 150

Media Intelligence Co.,Ltd. Agency Shareholding 20,000 20,000 33.33 33.33 74,705 60,329 6,667 6,667 7,333 6,667

Total 96,590 80,050 12,064 12,064 9,733 8,917

Unit: Thousand Baht

Consolidated Separate

Unit: financial financial

Thousand Baht Percentage statements statements

Issued share of Equity Cost Dividend

capital investment (%) method method-net

Company Industries Relations 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011

79

TheCompanyrecordedallowanceforimpairmentofinvestmentinRappCollins(Thailand)CompanyLimited

amountingtoBaht2.60million.

AsatDecember31,2012and2011,theGrouphadgeneralinvestmentsincommonstockin17companies

whichrepresentinvestmentsinnon-marketablesecurities,whichwerepresentedatcostnetfromallowance

forimpairmentoftheseinvestments.TheCompanyevaluatesfortheimpairmentofinvestmentforeachfiscal

yearandrecordsimpairmentlossinthestatementofcomprehensiveincome.

8. INVESTMENTS IN SUBSIDIARY COMPANIES – NET

Investmentsinsubsidiarycompanies–netasatDecember31,2012and2011,anddividendincomefrom

theinvestmentduringtheyearsendedDecember31,2012and2011,consistedof:

Fame Line Co.,Ltd. Agency Shareholding 4,000 4,000 86.48 86.48 3,459 3,459 17,297 13,838

Rapp Collins (Thailand) Co., Ltd. Agency Shareholding 5,000 5,000 52.00 52.00 - - - -

Total 3,459 3,459 17,297 13,838

Unit: Thousand Baht

Unit: Thousand Baht Percentage of Separate financial statements

Issued share capital investment (%) Cost method-net Dividend

Company Industries Relations 2012 2011 2012 2011 2012 2011 2012 2011

9. OTHER LONG - TERM INVESTMENTS - NET

Otherlong-terminvestments–netasatDecember31,2012and2011consistedof:

Marketable equity securities

SahaPathanaInter-HoldingPlc. 40,938 - 40,938 32,196 - 32,196

I.C.C.InternationalPlc. 35,195 - 35,195 37,935 - 37,935

BoutiqueNewcityPlc. 1,325 - 1,325 1,058 - 1,058

TheSiamCementPlc. 1,320 - 1,320 939 - 939

SahaPathanapibulPlc. 60,081 - 60,081 34,410 - 34,410

NationMultimediaGroupPlc. 2,706 - 2,706 1,061 - 1,061

InterFarEastEngineeringPlc. 2,223 - 2,223 1,544 - 1,544

NationInternationalEdutainmentPlc. 59 - 59 31 - 31

Non-marketable equity securities

Investmentsincommonstock-Netfrom

impairmentofinvestmentsofBaht23.48

millionin2012andBaht22.85millionin2011 - 31,577 31,577 - 12,401 12,401

Total 143,847 31,577 175,424 109,174 12,401 121,575

Unit:ThousandBaht

2012 2011

Consolidatedfinancialstatement/ Consolidatedfinancialstatement/

Separatefinancialstatement Separatefinancialstatement

Available-for- General Available-for- General

salesecurities investments Total salesecurities investments Total

80

10. PROPERTY, PLANT AND EQUIPMENT - NET

Property,plantandequipmentasatDecember31,2012and2011consistedof:

Unit:ThousandBaht

Consolidatedfinancialstatements

Buildings Furniture, Asset

andbuilding fixtureand under

Land improvements officeequipment Vehicles installation Total

Atcost

AsatDecember31,2011 159,185 75,905 77,624 50,874 190 363,778

Purchases/transfersinduringtheyear - 2,715 3,849 4,710 544 11,818

Disposal/transfersoutduringtheyear - - (240) (10,513) (734) (11,487)

AsatDecember31,2012 159,185 78,620 81,233 45,071 - 364,109

Accumulateddepreciation

AsatDecember31,2011 - (63,219) (63,942) (37,397) - (164,558)

Depreciationfortheyear - (5,278) (5,518) (3,811) - (14,607)

Disposals/transfersoutduringtheyear - - 114 10,513 - 10,627

AsatDecember31,2012 - (68,497) (69,346) (30,695) - (168,538)

Netbookvalue

AsatDecember31,2011 159,185 12,686 13,682 13,477 190 199,220

AsatDecember31,2012 159,185 10,123 11,887 14,376 - 195,571

DepreciationfortheyearsendedDecember31,showninthestatementsofcomprehensiveincomewere:

Year2011 16,490

Year2012 14,607

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Unit:ThousandBaht

Separatefinancialstatements

Buildings Furniture, Asset

andbuilding fixtureand under

Land improvements officeequipment Vehicles installation Total

Atcost

AsatDecember31,2011 159,185 64,176 59,505 27,146 190 310,202

Purchases/transfersinduringtheyear - 2,715 2,848 4,710 544 10,817

Disposal/transfersoutduringtheyear - - (240) (4,187) (734) (5,161)

AsatDecember31,2012 159,185 66,891 62,113 27,669 - 315,858

Accumulateddepreciation

AsatDecember31,2011 - (56,560) (50,786) (20,290) - (127,636)

Depreciationfortheyear - (3,066) (3,335) (2,720) - (9,121)

Disposals/transfersoutduringtheyear - - 114 4,187 - 4,301

AsatDecember31,2012 - (59,626) (54,007) (18,823) - (132,456)

Netbookvalue

AsatDecember31,2011 159,185 7,616 8,719 6,856 190 182,566

AsatDecember31,2012 159,185 7,265 8,106 8,846 - 183,402

DepreciationfortheyearsendedDecember31,showninthestatementsofcomprehensiveincomewere:

Year2011 10,973

Year2012 9,121

Thecarryingamountsoffullydepreciatedassetsthatarestillinuseareasfollows:

Unit:ThousandBaht

Consolidatedfinancial Separatefinancial

statements statements

Year2011 125,392 106,231

Year2012 115,957 99,367

82

11. TRADE AND OTHER PAYABLES

TradeandotherpayablesasatDecember31,2012and2011consistedof:

12. EMPLOYEE BENEFITS OBLIGATIONS

Movementofthepresentvalueofemployeebenefitsobligationsandemployeebenefitexpensesinthe

statementsofcomprehensiveincomefortheyearsendedDecember31,2012and2011asfollows:

Unit:Baht


2012 2011 2012 2011

Tradepayables

Tradepayables-relatedparties 24,529,135.82 22,620,156.23 18,965,183.26 15,733,725.70

Tradepayables-others 331,462,074.58 263,111,448.37 177,431,744.29 173,771,515.70

Totaltradepayables 355,991,210.40 285,731,604.60 196,396,927.55 189,505,241.40

Otherpayables:

Accruedemployeebenefits 46,125,045.00 35,464,940.00 23,561,652.00 24,717,514.00

Accruedexpenses 17,732,951.43 22,033,390.02 10,599,174.18 17,190,157.11

Advertisingincomereceivedinadvance 15,750.00 178,418.75 15,750.00 178,418.75

Others 1,140,200.12 109,863.46 68,148.00 50,814.00

Totalotherpayables 65,013,946.55 57,786,612.23 34,244,724.18 42,136,903.86

Totaltradeandotherpayables 421,005,156.95 343,518,216.83 230,641,651.73 231,642,145.26

Unit:Baht

Post-employmentbenefitplan


2012 2011 2012 2011

Definedbenefitobligationsatbeginningoftheyear 39,676,567.00 36,949,054.00 28,632,551.00 27,130,677.00

AddEmployeebenefitexpensesin

thestatementsofcomprehensiveincome:

Currentservicecosts 2,262,121.00 2,654,873.00 1,550,008.00 1,893,677.00

Costofinterest 1,595,432.00 1,738,612.00 1,093,825.00 1,274,169.00

LessPaymentforemployeebenefitobligations - (1,665,972.00) - (1,665,972.00)

Definedbenefitobligationsatendoftheyear 43,534,120.00 39,676,567.00 31,276,384.00 28,632,551.00

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EmployeebenefitsobligationsinthestatementsoffinancialpositionasatDecember31,2012and2011

consistedof:

TheGrouphasdefinedbenefitplaninaccordancewithseverancepaymentunderthelaborlawandother

definedbenefitplanfortheretiredemployeewhohastheserviceperiodasspecifiedintheplan.

Theactuarialassumptionofdiscountrateisestimatedfromweightedaverageofyieldrateofgovernment

bondsasattheendofreportingdatethatreflectstheestimatedtimingofbenefitpayments.

Theactuarialassumptionofmortalityrateforreasonableestimationofprobabilityofretirementinthefuture

isestimatedfrommortalitytablefortheyear1997oftheOfficeofInsuranceCommission.

Theactuarialassumptionoffuturesalaryincreasesisestimatedfromhistoricalstatisticofeachdepartments

oftheGroup.

Theactuarialassumptionofproportionofemployeesoptingforearlyretirementestimatefromhistorical

databasedontheageoftheemployee.

13. LEGAL RESERVE

ThelegalreserveoftheCompanywasestablishedinaccordancewiththeprovisionofthePublicCompany

LimitedAct,(B.E.2535)whichrequirestheappropriationaslegalreserveofatleast5%ofnetincome

untilthereservereaches10%oftheauthorizedsharecapital.Thisreserveisnotavailablefordividend

distribution.

14. DIVIDEND PAYMENT

TheresolutionsoftheCompany’sOrdinaryGeneralShareholders’MeetingNo.18heldonApril27,2012,

approvedtopaydividendsfromtheresultoftheCompany’soperationsfortheyear2011intheamountof

Baht67.50million,atBaht9pershare.ThedividendpaymentdatewasMay24,2012.

Theresolutionsofasubsidiary’sOrdinaryGeneralShareholders’MeetingNo.23heldonApril27,2012,

approvedtopaydividendsfromtheresultofitsoperationsfortheyear2011intheamountofBaht20

million,atBaht500pershare.ThedividendpaymentdatewasMay23,2012.

TheresolutionsoftheCompany’sOrdinaryGeneralShareholders’MeetingNo.17heldonApril28,2011,

approvedadividenddeclaration fromthe resultof theCompany’soperations for theyear2010 in the

amountofBaht60million,atBaht8pershare.ThepaymentdatewasMay11,2011.

Theresolutionsofasubsidiary’sOrdinaryGeneralShareholders’MeetingNo.22heldonApril28,2011,

approvedtopaydividendsfromtheresultofitsoperationfortheyear2010intheamountofBaht16

million,atBaht400pershare.ThedividendpaymentdatewasMay23,2011.

Unit:Baht

Post-employmentbenefitplan


2012 2011 2012 2011

Presentvalueofobligations 43,534,120.00 39,676,567.00 31,276,384.00 28,632,551.00

LessFairvalueofplanassets - - - -

Employeebenefitsobligations-net 43,534,120.00 39,676,567.00 31,276,384.00 28,632,551.00

84

15. OTHER INCOMES

OtherincomesincludedcashdiscountsresultingfromcashmanagementfortheyearsendedDecember

31,2012and2011areasfollow:

Unit:ThousandBaht

Consolidatedfinancial Separatefinancial

statements statements

Year2012 38,693 17,401

Year2011 46,679 19,529

16. EXPENSES BY NATURE

SignificantexpensesbynaturefortheyearsendedDecember31,2012and2011wereasfollows:

Unit:ThousandBaht


2012 2011 2012 2011

Costofservicesandcommissions 317,493 296,582 190,519 209,475

Employeebenefits 224,912 222,990 144,510 154,733

Depreciation 14,607 16,490 9,121 10,973

Lossonimpairmentofinvestmentin

subsidiarycompany - - - 2,600

Others 63,779 65,437 53,464 54,238

Total 620,791 601,499 397,614 432,019

17. INCOME TAX EXPENSES

RoyalDecreeNo.530B.E.2554datedDecember14,2011grantsareductioninthecorporateincome

taxratefrom30%to23%onnetprofitfortheaccountingperiodbeginningonorafterJanuary1,2012,

andwillbe reduced to20%onnetprofit for the twoconsecutiveaccountingperiodsbeginningonor

afterJanuary1,2013onwards.

18. COMMITMENTS AND CONTINGENT LIABILITIES

18.1 As at December 31, 2012 and 2011, the Group has contingent liability in relation to letters of

guarantee issued by banks amounting to approximately Baht 5.51 million and Baht 6.0 million,

respectively.TheGrouppledgedtheir3monthtimedeposittotalingofBaht5.51millionandBaht6.0

million,respectivelyascollateralforthelettersofguarantee.

18.2 AsatDecember31,2012and2011,theCompanyhasamanagementservicesagreementwitha

related company whereby the latter granted the Company the right in trademark, assistance in

business development and client services, and technical assistance involved in customers both

nationwideand regionwide.TheCompanywill reciprocate thiscompanybypayinganannual fee

ofBaht3million.

85

Unit:ThousandBaht


2012 2011 2012 2011

Assets

Tradeandotherreceivables 238,243 172,510 112,219 129,717

Liabilities

Tradepayable 24,529 22,620 18,965 15,734

Depositreceipts 194 194 484 484

Unit:ThousandBaht


2012 2011 2012 2011

Relatedcompanies

Revenuesandexpenses

Revenuefromrenderingofservices 271,734 209,140 106,574 124,136

Otherincomes 3,536 1,916 6,375 5,279

Serviceexpenses 16,707 16,878 10,507 10,825

Consultingfeeexpenses 600 600 480 480

Relatedpersons

Keymanagementcompensation

Short-termbenefits 26,806 28,204 25,056 26,564

AsatDecember31,2012and2011,theSubsidiaryhadmemorandumofunderstandingforbusiness

establishingwithrelatedcompanyinoverseawhichthesubsidiarywillpayamanagementfeeatthe

rateof2%ofgrossmargin (US$1,000 incase theprofit after tax less than thecomputed fee)

eachyear.

18.3 AsatDecember31,2012and2011,theCompanyhadunusedoverdraftfacilitiesfromcommercial

banks,totalingBaht12million,whichwereguaranteedbyadirectoroftheCompanyintheamount

ofBaht10millionandtheremainingamounthadnocollateralandpersonalguarantee.

18.4 As at December 31, 2012 and 2011, the Company had outstanding forward contract from a

commercial bank, USD 200,000 andUSD 20,114.43, respectively from totalingUSD 200,000 or

beequalto.

19. RELATED PARTY TRANSACTIONS

TheGrouphascertaintransactionswithitsrelatedparties.Thesecompaniesarerelatedthroughcommon

shareholdingsand/ordirectorships.AportionoftheCompany’sassets,liabilities,revenuesandexpenses

arose from transactions with related parties. The effects of these transactions are reflected in the

accompanying financial statement on the basis ofmarket price under normal commercial activities as

determinedbythecompaniesconcerned.AsatDecember31,2012and2011,thesignificantoutstanding

balancesandtransactionswithrelatedpartiescanbesummarizedasfollows:

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20. FINANCIAL INFORMATION BY SEGMENT

TheGrouphasoperatedonlyasadomesticadvertisingagency, therefore, there isnopresentationof

financialinformationbysegment.

21. FINANCIAL INSTRUMENTS

TheGroupdoesnotspeculateorengageinthetradingofanyderivativefinancialinstruments.

Interest Rate Risk

Interestrateriskoccurswhenthevalueoffinancialinstrumentschangeinaccordancewiththefluctuation

ofmarketinterestrates,whichmayaffectinterestincomeandinterestexpenseofthepresentandfuture

years.

AsatDecember31,2012and2011,theGroupdidnothavesignificantinterestbearingloansorliabilities.

Therefore,theGroupisnotmateriallyexposedtointerestraterisk.

Credit Risk

TheGroupprovidescredittermsonmanytradetransactionsforcustomersafterconfirmingtheircredit

worthiness.Thecollectionofaccountsreceivablesiscloselymonitored.TheGroupfocuscollectiononall

accountsoverdueandwillmakeaprovisionforaccountsreceivableonoverdueaccountsformorethan

1year.Atthistimethereisnoreasontoexpectmajororsignificantlossesarisingfromthecollectionof

tradereceivables.

ThetradereceivableagingschedulehadbeendisclosedinNote6tothefinancialstatements.

Fair Value

Thefairvalueofthefinancialinstrumentsistheamountatwhichtheinstrumentsmaybeexchangedina

currenttransactionbetweenwillingparties.Thefollowingmethodsandassumptionsareusedtoestimate

thefairvalueforeachclassoftheCompany’sfinancialinstruments:

-Financialassetsshownatestimatedfairvalue.

-Financial liabilitiesshownatbookvaluearealmost thesameas the fairvalue,becausesuch

liabilitieswillmatureintheshortterm.

22. EMPLOYEE PROVIDENT FUND

AsubsidiaryanditsemployeeshavejointlyregisteredaprovidentfundschemeundertheProvidentFund

ActB.E.2530.Thefundiscontributedequallybyboththeemployeesandthesubsidiaryattherateof

2-5percentoftheemployee’ssalarybasedonthenumberofemployees’workingyear.Thefundwillbe

paidtotheemployeesuponterminationinaccordancewiththerulesofthefund.Contributionpayment

isstartingApril1,2008.

23. APPROVAL OF FINANCIAL STATEMENT

TheCompany’sauthorizeddirectorsapprovedtoissuethesefinancialstatementsonFebruary27,2013.

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Audit Fee for the year 2012 1. Audit Fee

- TheCompanyandSubsidiariespaidauditfeetotheCompany’sAuditorfortheyear2012asfollows:

FarEastDDBPlc. Baht 440,000.00

FameLineCo.,Ltd.(Subsidiary) Baht 145,000.00

RappCollins(Thailand)Co.,Ltd.(Subsidiary) Baht 93,000.00

2. Non - Audit Fee

-None-

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Recognitions Greatchallenges bring forththe best ofideas.

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Quantum : Correction Pen Hero B.A.D. Awards 2012 : Certificate - Craft PrintB.A.D. Awards 2012 : Nomination - Craft Print

Quantum : Correction Pen Hero B.A.D. Awards 2012 : Certificate - Craft PrintB.A.D. Awards 2012 : Nomination - Craft Print

Quantum : Pencil Hero B.A.D. Awards 2012 : Nomination - Craft Print

2012 Awards SummaryTVC

Farmhouse Fine Wholewheat “ขนมปงโฮลวีตที่รอคอย” MAT Awards 2012 :Bronze - Marketing Campaign

Marketing Awards

AP Corporate "You are our Inspiration" Adman Awards 2012 : Finalist - TVCBAD Awards 2012 : Finalist - TVC

โตไปไมโกง “ยักษ / กินใตโตะ / ยอยยาก” รางวัลชอสะอาด 2012 : Awarded, TVC

B.A.D Student Workshop 2012 "เปบพิศดาร"Adman Awards 2012 : Finalist - PrintAdman Awards 2012 : Finalist - Outdoor

Print

Elephant Brand Stationery : Serious for ladies B.A.D. Awards 2012 : Nomination – TVC

Elephant Brand Stationery : Why Shake? B.A.D. Awards 2012 : Nomination – TVC

Elephant Brand Stationery : Serious campaign B.A.D. Awards 2012 : Finalist - TVC

Radio

ก.ย.ศ. “เรียนนอกหลักสูตร”Adman Awards 2012 : Finalist - Radio

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2012 Our WorkTVC

Asian Property

B-Quik

CarabaoDang

Falless Shampoo

Farmhouse Daily Wholewheat

KTB Netbank

Lipton Iced Tea

MAMA แกงเขียวหวาน

Neutrogena Hydro Boost Water Gel

V-Slim Canned Coffee

KTB Netbank - ไดเวลาปฏิวัติ

91

Print

Arrow Arrow

Cotto Tiles Cotto TilesTra Chang SmartWOOD

Bangkok Read for Life

Carabao Dang

Hi-Class

KTB Netbank

MAMA Mont Fleur

Neutrogena Hydro Boost

Thailand's Brand True Move

Pan Quicker

ARUNOTAI RUANGSUNTI

BOVON KONGTHANANET

KOMKRICH RATCHUSIRI

KORN PRADITKET

NUANPHAN VIPATAKUL

PENNAPA CHAITEM

PISSAMAI AEMPRANEET

POLAVUTH VARAKARMOL

PORNTHIP CHAISIRIROJ

PORNWILAI PINVANICHKUL

PRAJAK RUENPAHANA

PRANEE CHAROENPORNPOS

PREECHA WORAPONGSATHORN

SUPORN JAMVITEELERT

SUREE MUENNARINTR

VICHITRA THAMNORANART

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