bjc : annual report 2010 en

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54-01-039 Nipok_san 18.5 mm._J = CS2_G ClassicArtcard

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21 x 29.7 cm

2006

2007

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Baht millionT o t a l S a l e s

17,622

19,162

22,24322,799

26,082

2006

2007

2008

2009

2010

0

50

0

1,0

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1,5

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Baht millionN e t I n c o m e

989

1,255

1,0821,262

1,905

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Baht millionT o t a l A s s e t s

17,618

19,643

22,81323,036

27,196

2006

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Baht millionS h a r e h o l d e r s’ E q u i t y

8,189

8,988

9,55510,351

11,419

FINANCIAL HIGHLIGHTS

246 247246 247

Industrial Supply Chain 13,067.8 10,699.8 22.1%

Consumer Supply Chain 8,068.5 7,223.5 11.7%

Heatlhcare and Technical Supply Chain 4,532.1 4,457.6 1.7%

Other 488.0 418.3 16.7%

Eliminations (74.6)

Total Sales and Services 26,081.8 22,799.2 14.4%

Other income 277.3 271.3 2.2%

Total Revenue 26,359.1 23,070.5 14.3%

Operating Income 3,089.9 1,957.3 57.9%

Interest Expense (227.0) (222.2) 2.2%

Net Income Before Taxation and Minority Interests 2,862.9 1,735.1 65.0%

Income Tax (668.1) (415.2) 60.9%

Net Income Before Minority Interests 2,194.8 1,319.9 66.3%

Minority Interests (289.4) (57.8) 400.7%

Net Income 1,905.5 1,262.1 51.0%

Total Assets 27,196.0 23,035.6 18.1%

Net Shareholders’ Equity 11,418.6 10,350.7 10.3%

Net Assets 12,662.5 11,373.7 11.3%

Net Debt 6,856.9 5,172.8 32.6%

Per share data (Baht)

Earning 1.20 0.79 51.0%

Interim Dividend 0.25 0.12 108.3%

Final Dividend 0.35 0.21 66.7%

Total Dividend 0.60 0.33 81.8%

Book Value 7.19 6.52 10.3%

Financial Highlights

Million baht Million baht %

Sales & Service by Supply Chain 2010 2009 Inc / (Dec)

246 247246 247Annual Report 2010 • Berli Jucker Public Company Limited

“...BJC’s 2010 profit growth being the highest since the founding of the company.

More importantly, the BJC Group has significantly expanded its glass production

and sales network, thereby becoming a genuine leader in the glass packaging

industry in Southeast Asia...”

248 249248 249

Charoen Sirivadhanabhakdi Chairman of the Board of Directors

Message from the Chairman of the Board of Directors

BJC’sbusinesshasgrownin2010assincetheyears2008-2009,ourmanagementhascontinuouslyemployedaggressiveexpansionpoliciesbothdomesticallyandregionally inthedevelopmentofnewproducts, improvements in technology and efficiency of production. This has included the acquisition of two businesses at an opportune time, in cooperation with our global business ally. Owens-lllinois, taking over four glass packaging factories from the Fraser & Neave Group, and acquiring a majority holding in a trading company in Vietnam. These investments totalled over eleven thousand two hundred million baht and resulted in BJC’s 2010 profit growth being the highest since the founding of the company. More importantly, the BJC Group has significantly expanded its glass production and sales network, thereby becoming a genuine leader in the glass packaging industry in Southeast Asia.

However,duetoanincreaseinextentandvolatilityoftheeconomicsituation,allthemanagementand personnel of BJC will face a heavier burden in the coming year, especially since in the first quarter of 2011 we have seen an emerging problem with increasing oil prices. Analysts around the world have begun to talk about an oil price crisis due to the present political disruptions in the Middle East and the possibility of this turmoil spreading to other countries. The price of oil is a significant factor that will contribute to fluctuations in the price indices of almost every product. Moreover, if there should be further political disruptionsandnaturaldisastersthesituationwillbeincreasinglyaggravatedandconductingbusinessactivities will be much more difficult. Therefore, I would like to urge us to move ahead with caution and be willing to dedicate ourselves to our work with the utmost effort in order to bring about good returns to our shareholders and all other stakeholders.

I would like to thank our customers, suppliers and business alliances, as well as the various organizations that have cooperated and supported the BJC Group and enabled us make steady progress to a successful 129th anniversary of its foundation. I would like to thank and express my appreciation to all our management and personnel since you have all have played an integral part in the success of the past year. I would like to encourage you all to continue to collectively help in the development of the business of the BJC Group and to look forward to celebrating our 130th anniversary with pride.


12 09 01 02

10 06 11 07 15

14 13 08 04 05

03

Board of Directors

250 251250 251

01 Mr.Charoen Sirivadhanabhakdi

Chairman /

Chairman of Executive Board /

Chief Executive Officer

02 Khunying Wanna Sirivadhanabhakdi

Vice Chairman

03 Dr.Chaiyut Pilun-Owad

Director /

Vice Chaiman of Executive Board /

Nomination and Remuneration

Committee Member

04 Mr.Thirasakdi Nathikanchanalab

Director /

Vice Chairman of Executive Board /

Risk Management Committee

Member

05 Mr.Prasert Maekwatana

Director /

Vice Chairman of Executive Board /


Member

06 Mr.Aswin Techajareonvikul

Director /

Executive Director /

Chairman of Risk Management

Committee /

President

07 Mrs.Thapanee Techajareonvikul

Director /



Member and Secretary to Risk

Management Committee /

Secretary to Nomination and

Remuneration Committee /

Senior Executive Vice President

08 Mr.Sithichai Chaikriangkrai

Director /



Member

09 Mr.Prasit Kovilaikool

Director /

Independent Director

10 Mr.Thapana Sirivadhanabhakdi

Director /

Executive Director

11 Mr.Panot Sirivadhanabhakdi

Director /

Executive Director

12 Mr.Staporn Kavitanon

Director /

Chairman of Audit Committee /

Independent Director /

Chairman of Nomination and

Remuneration Committee

13 Dr.Suvit Maesincee

Director /

Audit Committee Member /

Independent Director /

Nomination and Remuneration

Committee

14 Mr.Weerawong Chitmittrapap

Director /

Audit Committee Member /

Independent Derector

15 Ms.Potjanee Thanavaranit

Director /


250 251Annual Report 2010 • Berli Jucker Public Company Limited

250 251

02 01 05 03 06 07 04

Management Board

252 253252 253

01 Mr.Aswin Techajareonvikul

President

02 Mrs.Thapanee Techajareonvikul


03 Mr.Peter Emil Romhild


Technical Supply Chain and

International Business Group

04 Mr.Pattaphong Iamsuro

Executive Vice President

Consumer Supply Chain

05 Mr.Terapon Kietsuranon


Healthcare Supply Chain

06 Mr.Somporn Bhumiwat


Packaging Products Group

07 Mr.Teera Werathamsathit

Senior Vice President

Group Human Resources


252 253

254 255

BJC GROUP ORGANIZATION STRUCTURE 2011

Board of Directors

Executive Board

President

Advisors



Nomination & Remuneration Committee

Industrial Supply Chain

Thai Glass IndustriesPublic Co., Ltd.

Packaging ProductsDivision

BJC Glass VietnamLimited

Thai BeverageCan Co., Ltd.

Berli DynaplastCo., Ltd.

Malaya VietnamGlass Ltd.

Thai Malaya GlassCo., Ltd.

Gaew Grung ThaiCo., Ltd.

Malaya GlassProducts SDN BHD

BJC O-I GlassPte., Ltd.

PackagingProducts Group

International BusinessGroup

VietnamRepresentative

Office

Berli JuckerInternational Co., Ltd.

Berli Jucker(Myanmar) Ltd.

BJC InternationalCo., Ltd.

BJC InternationalCo., Ltd. (Hong Kong)

BJC GlassCo., Ltd. (Hong Kong)

Thai Corp International

Co., Ltd. (Hong Kong)

Rubia InvestmentLtd.

T.C.C. TechnologyCo., Ltd.

Siam CementCo., Ltd.

Marble & StoneCo., Ltd.

Thai Fluorsper &Minerals Co., Ltd.

BJC MarineResouces

DevelopmentCo., Ltd.

Business Partner Group

PortfolioManagement

Division

Group Finance& Accounting

Group HumanResources Division

Group Legal and Corporate

Support Division

Group InternalAudit Division


ConsumerMarketing Division

Consumer Sales Division

Berli JuckerFoods Ltd.

Berli JuckerLogistics Ltd.

Jacy FoodsSDN BHD

BJC International(Vietnam) Limited

Rubia Industries Ltd.

Berli JuckerCellox Ltd.

BJC MarketingCo., Ltd.


(Vietnam) Limited

Specialty ProductsDivision

Medical InnovationDivision

Medical EquipmentDivision

Berli JuckerSpecialties Ltd.

Berli Asiatic SodaCo., Ltd.

BJC Industrial andTrading Co., Ltd.

BJC HealthcareCo., Ltd.

Montana Co., Ltd.

Cosma MedicalCo., Ltd.

Thai-ScandicSteel Co., Ltd.

Engineering Division

Healthcare & TechnicalSupply Chain

Medical ProductDivision

Stationery & OfficeSupply Division

Graphics Division

Audit Committee

Finance &Accounting

Division

Corporate FinanceDivision

BJC GROUP ORGANIZATION STRUCTURE 2011

Board of Directors

Executive Board

President

Advisors



Nomination & Remuneration Committee


Thai Glass IndustriesPublic Co., Ltd.

Packaging ProductsDivision

BJC Glass VietnamLimited

Thai BeverageCan Co., Ltd.

Berli DynaplastCo., Ltd.

Malaya VietnamGlass Ltd.

Thai Malaya GlassCo., Ltd.

Gaew Grung ThaiCo., Ltd.

Malaya GlassProducts SDN BHD

BJC O-I GlassPte., Ltd.

PackagingProducts Group

International BusinessGroup

VietnamRepresentative

Office

Berli JuckerInternational Co., Ltd.

Berli Jucker(Myanmar) Ltd.

BJC InternationalCo., Ltd.

BJC InternationalCo., Ltd. (Hong Kong)

BJC GlassCo., Ltd. (Hong Kong)


Co., Ltd. (Hong Kong)

Rubia InvestmentLtd.

T.C.C. TechnologyCo., Ltd.

Siam CementCo., Ltd.

Marble & StoneCo., Ltd.

Thai Fluorsper &Minerals Co., Ltd.

BJC MarineResouces

DevelopmentCo., Ltd.

Business Partner Group

PortfolioManagement

Division

Group Finance& Accounting

Group HumanResources Division

Group Legal and Corporate

Support Division

Group InternalAudit Division


ConsumerMarketing Division

Consumer Sales Division

Berli JuckerFoods Ltd.

Berli JuckerLogistics Ltd.

Jacy FoodsSDN BHD

BJC International(Vietnam) Limited

Rubia Industries Ltd.

Berli JuckerCellox Ltd.

BJC MarketingCo., Ltd.


(Vietnam) Limited

Specialty ProductsDivision

Medical InnovationDivision

Medical EquipmentDivision

Berli JuckerSpecialties Ltd.

Berli Asiatic SodaCo., Ltd.

BJC Industrial andTrading Co., Ltd.

BJC HealthcareCo., Ltd.

Montana Co., Ltd.

Cosma MedicalCo., Ltd.

Thai-ScandicSteel Co., Ltd.


Healthcare & TechnicalSupply Chain

Medical ProductDivision

Stationery & OfficeSupply Division

Graphics Division

Audit Committee

Finance &Accounting

Division

Corporate FinanceDivision


Dear shareholders,

The year 2010 is another good year for our company. While the overall Thai economy grew 7.8% from 2009, our sales grew by 14.3% and our net profit grew by 50.1% from 2009, despite political turmoil in May and major floods in the North Eastern, Central and Southern parts of Thailand in October. We have set many major milestones in our corporate history this year. Our market capitalization reached the highest level since our company’s inception at Baht 38,274 million on November 4th,2010, and our net profit was the highest in our 129 years of history.

Our continuing efforts to focus on improving the return on equity (ROE) have come to fruition. Our ROE has increased from 12.68% in 2009 to 17.51% in 2010. Our two-pronged strategies have been to introduce constantly more new products to markets, and put more discipline in our manufacturing process. Through our research and development, in 2010, we have offered 96 new items in our glass bottles, aluminum cans, consumer products, and healthcare products, increasing 37.14% from 2009. For products that we have own manufacturing facilities, we have implemented new techniques, such as six-sigma and lean manufacturing, as well as many cost reducing measures. This in effect has helped increase our gross profit margins by 2.8%.

Business expansion through merger and acquisition is another means that we have continued to focus. Following our vision to be a leading company in South East Asia, we have completed two international transactions this year. Firstly, we, along with our global partner, Owens-Illinois, acquired four glass plants from Fraser & Neave for USD 345 million. This deal allows us to add footprints in Malaysia and Vietnam, enabling us to become the largest glass manufacturer and marketer in South East Asia. Secondly, we acquired 75% stakes in Thaicorp Group, a distributor of fast moving consumer goods in Vietnam, to enhance further our distribution platform in Vietnam.

With these two acquisitions, we have added around 1,000 employees outside Thailand. Our people are the key to the success of our businesses. We have put strong emphasis in recruitingnew talents,developingand retainingouremployees,andaligning incentives of our team towards the same goal. We have implemented for the first time balanced scorecard and bonus link to clearly defined business objectives. We have reviewed our salary structure and benefits, and benchmarked against our industries and competitors. We also have developed our training roadmap for all level of our staff.

Executive Summary

“...We have set many major milestones in our corporate history this year. Our market capitalization reached the highest level since our company’s inception at Baht 38,274 million on November 4th, 2010, and our net profit was the highest in our 129 years of history...”

256 257256 257

We would like to take this opportunity to express our sincere appreciation to our shareholders, customers, investors, business partners and more than 7,000 employees for continued support of our company.

Finance

Consolidated revenue of the group as of December 31, 2010 was Baht 26,359 million, or a 14.3% rise over that of 2009. Net profit attributable to equity holders increased by 51.0% to Baht 1,905 million.

Share price

BJC’s share price as of the end of 2010 was Baht 18.40, up from Baht 5.00 at the end of 2009, an impressive return of 268%.

Major Business Performances in Brief


2010 was an outstanding year of performance of Industrial Supply Chain with an increase in net profit of 222% from 2009. Glass Packaging business showed strong sales growth of both organic and acquired businesses of Malaya Glass Group in July 2010. In terms of organic growth, sales of existing Glass Packaging business increased from 2009, particularly in alcohol and food segments. All profitability ratios also indicated upward improvement both through lower key raw material prices and through ongoing implementation of productivity improvement programs. The combined net profit of organic and acquired businesses increased more than two times from 2009.

For Aluminum Can business, 2010 sales continued to increase from last year, particularly in domestic market, with the highest market share in Thailand

Sales of the Galvanized Steel Structures business significantly increased from 2009 mainly from strong performance of transmission line, substation and telecommunication tower products. In contrast, sales of Engineering Products & Services business decreased from 2009. Weaker sales momentum was primarily attributed to competing products from China and slow revenue from service businesses.


Sales of the Consumer Supply Chain improved in all businesses, except for Contract Manufacturing business. Sales of Foods business showed a small increase from 2009 while net profit decreased due to increase in advertising and promotion spending from new product launches, increase in raw material prices during 4Q10 and negative sentiment from the political unrest in early of the year. 2010 was a reasonable year for “Tasto” potato chips despite ongoing competition both in terms of pricing and new product variances. On the other hand, sales of “Dozo” rice cracker and the new product introduction “Campus Choco Drink” were particularly strong.

In 2010, sales of Tissue business grew in accordance with the market growth at around 5% and have maintained the market share from 2009. Overall sales of “Cellox” and “Zilk” products, representing more than half of sales contribution, remained performing well. In order to cope with high paper pulp price in 2010, Tissue business has continually implemented several productivity improvement and cost control programs throughout the year as well as introducing new product variances to draw higher consumer demand.


256 257

Personal Care business continued to show outstanding earnings momentum in 2010. As a result of ongoing successful brand building program and marketing activities, “Parrot” soap had achieved “one billion” baht brand in 2010. Additionally, the performance of “Dermapon” baby liquid soap continued to show strong momentum with doubly sales from 2009. The introduction of “Berli Pops” in 3Q10 also reiterated strong 2010 performance of Personal Care & Cosmetic business.

For Third Party Distribution business, 2010 was an outstanding year. Sales were strong throughout the year, especially sales of “Kato” fruit juice with Nata De Coco. In this year, BJC secured a distribution right for the new principal “Penguin” bathroom and floor cleaner, reiterating the direction to expand sales, marketing and distribution capabilities going forward.

For Logistics business, revenue increased from 2009 mainly attributed to the higher revenue from transportation services. The average warehouse utilization rate increased from 2009, in particularly at Kluay Nam Thai warehouse.

Healthcare Supply Chain

2010 was a challenging year for the Healthcare Supply Chain. All divisions were negatively affected by an unrest political situation causing the temporary closure of several hospitals in Bangkok area. The suspension of Thai Khem Kaeng (TKK) government budget was another negative effect on this year performance. Despite these uncontrollable factors, the Healthcare Supply Chain has been continually focusing on strengthening customer relations through marketing activities such as booth exhibitions and conference support; providing high-quality after-sale service; and seeking innovative products to fulfill its portfolio. Surgical Equipment business has entered a field of ophthalmology both diagnostics and treatment. Meanwhile, Medical Imaging business has retained in it strong footholds in diagnostic equipment and diversified more product line by introducing new products such as portable CT scan, MRI and Contrast Media Injector. Looking ahead of distributing business, Medical Imaging business and Surgical Equipment business are stepping into project-based business as well.

Technical Supply Chain

Sales of all businesses increased, primarily due to improving economic conditions in 2010, while net profit of Graphics and Specialties businesses increased from 2009. Sales of Stationery business were particular strong in Double A products from increasing number of customer coverage and in 3M products from ongoing trade campaigns. For Graphics business, the improving performance from 2009 was mainly due to significant increase in sales of cine film and higher prepress machine installation, which in turn increase sales in consumable products. Meanwhile, the performance of Specialties business significantly improved in accordance with the economic conditions.

258 259258 259

(Aswin Techajareonvikul) President

Operational Results and Financial Status

Operational results

Total revenues of the Company and its subsidiaries were Baht 26,359.1 million in 2010, an increase of 14.3% from last year. This comprised revenues from sales of goods and rendering of services of Baht 26,081.8 million and other income of Baht 277.3 million.

Total expenses of BJC in 2010 were Baht 23,331.4 million, an increase of Baht 2,154.5 million or 10.2% from last year. The main contributions to the increase were as follow :

• Cost of sales and services was Baht 18,939.6 million, an increase of Baht 1,741.8 million or 10.1% due to an increase in sales.

• Selling and administrative expenses were Baht 4,391.8 million, an increase of Baht 412.7 million or 10.4%, mainly from sales, distribution, marketing and promotion expenses.

In 2010, BJC’s net profit after tax was Baht 2,194.8 million while the portion attributable to equity holders of the company was Baht 1,905.5 million, an increase of Baht 643.4 million or 51.0%, mainly due to successful cost control efforts, improving productivity and more favorable prices in key raw material. The gross profit margins of BJC for 2010 and 2009 were 27.4% and 24.6% respectively, and the net profits after tax for 2010 and 2009 were 7.3% and 5.5% respectively.

BJC reported earnings per share of Baht 1.20 in 2010 compared to Baht 0.79 in 2009.

Financial status

As of December 31, 2010, BJC’s assets were Baht 27,196.0 million, representing an increase of Baht 4,160.4 million or 18.1% from 2009. The main contributions to the changes in the assets balance are as follow :

• Trade Accounts Receivable was Baht 5,390.4 million, an increase of 828.8 million or 18.2% from last year in accordance to sales increase. The Trade Accounts Receivable, turnover ratio was 5.24 times compared to last year at 5.14 times.

• Inventory was Baht 4,466.1 million, a decrease of Baht 35.5 million or 0.8% as a result of increases in allowance for obsolete and slow-moving inventory of Baht 95.6 million, and an increase in inventory of Baht 60.1 million. The inventory turnover ratios for 2010 and 2009 were 4.22 times and 3.92 times respectively.

• Other current assets were Baht 610.2 million, an increase of Baht 193.7 million or 46.5%, which mainly came from the increase in advance payments of Baht 75.9 million, and other current assets of Baht 96.1 million from new business combination in 2010.


258 259

• Investments in associates were Baht 412.2 million, an increase of Baht 13.7 million or 3.4% which mainly came from sharing of profits from associate companies.

• Net property, plant and equipment was Baht 12,533.5 million, an increase of Baht 1,082.3 million or 9.5%. The amount of Baht 1,455.1 million was attributed to the business acquisitions in 2010. Capital expenditure was Baht 1,111.2 million, which was mainly attributed to the Industrial Supply Chain of Baht 660.3 million and Consumer Supply Chain of Baht 120.1 million. The depreciation charge for the year was Baht 1,387.9 million. The return to Fixed Assets ratios in 2010 and 2009 were 27.35% and 21.73% respectively.

• Intangible assets were Baht 1,946.5 million, an increase of Baht 1,789.7 million or 1,141.7%, mainly came from goodwill from business acquisitions of Baht 1,680.7 million, the distribution channel acquisitions of Baht 98.7 million, and the software licenses purchase of Baht 36.1 million. The amortization charge for the year was Baht 25.8 million.

• Deferred tax assets were Baht 432.8 million, a decrease of Baht 98.8 million or 18.6%, due to the decrease in tax loss carry forward of Baht 85.7 million, decrease in other allowances and provisions of Baht 57.4 million and decrease in investments (impairment) of Baht 70.5 million.

• Other non-current assets were Baht 122.5 million, an increase of 4.7 million or 4.0%, from a decrease of Baht 13.2 million in transportation packaging, and from an increase of Baht 17.9 million in deposits and others.

Total liabilities of BJC as of December 31, 2010 were Baht 14,533.5 million, an increase of Baht 2,871.6 million or 24.6% from 2009. The main contributions to the changes in the liabilities balance are as follow :

• Interest-bearing liabilities were Baht 8,075.4 million, an increase of Baht 2,062.6 million or 34.3% from an issuance of unsecured debentures of Baht 1,898.4 million, an increase of Baht 1,550.3 million in short-term and long-term loans from financial institutions, and a debt repayment of Baht 1,386.0 million in short-term and long-term loans from financial institutions. The interest bearing debt to shareholder equity ratio in 2010 was 0.64 times, compared to 0.53 times in 2009.

• Trade Accounts payable was Baht 3,132.5 million, an increase of Baht 465.7 million or 17.5%. The Trade Accounts Payable turnover ratio in 2010 was 6.5 times, compared to 6.1 times in 2009.

• Other current liabilities were 1,996.1 million, an increase of Baht 203.8 million or 11.4%, mainly due to the increases in deferred income of Baht 108.4 million, accrued commission expense of Baht 22.9 million, and other payables and accrued expenses, such as, accrued utilities expense and accrued operation expense of Baht 72.5 million.

260 261260 261

Shareholder’s equity of BJC as of 31 December 2010 was Baht 12,662.5 million, an increase of Baht 1,288.8 million or 11.3% from 2009. The main contributions to the changes in the shareholder’s equity balance are as follow :

• Increase from 2010 Net Profit of Baht 2,194.8 million

• Increase from minority interest from acquisition of Baht 9.9. million

• Decrease from dividend payment of Baht 730.5 million. Firstly, Baht 333.5 million or Baht 0.21 per share for the second half year 2009 performance paid on 27 May 2010 according to the approval resolution of the Ordinary General Shareholders Meeting held on April 29, 2010.

• Secondly, Baht 397 million or Baht 0.25 per share for the first half year 2010 performance paid on September 11, 2010 according to the approved resolution of the Board of Director’s meeting held on August 11, 2010.

• Decrease of Baht 185.4 million from dividends of subsidiaries paid to minority interests of Baht 78.4 million and translation of financial statement difference of Baht 107 million.


260 261

Our Brands

Brands We Own


Consumer Marketing / Consumer Sales Divisions

Personal Care Products :•Cellox• Zilk/Melona •Belle

Brands We Serve

• Dion• Maxmo•Yori•Cella• Parrot Gold Bar Soap and Parrot Gold Shower• Parrot Botanicals Bar Soap & Shower Cream

• Dermapon

Snack Food Products :• Tasto • Party •Campus•Bitee• Dozo

• Plern

Cosmetic• Berli POPS

Personal Care Products under Rubia Industries• KA-LA


Packaging Products Division•ChangClassicBeer• Chang Light Beer• Chang Draught Beer• Federbrau Beer• Archa Beer• Asahi Beer• Phuket Beer•CheersBeer• Heineken• Tiger• Mekhong Whisky• Sangsom Whisky• Hong Thong Whisky• Blend 285 Whisky• Merlidian Brandy• White Spirit• Sponsor• Krating Daeng• Wrangyer• Carabao Daeng• Sun Spark• M-150• Spy• Smirnoff• Sprite• Coke• Arise•Brighty• Fanta• Pepsi• Seven-up

• RC Cola• RC Royal•Bireley’s• Vitamilk• Chang Soda Water• Chang Water•Brand’s•Veta• Bezz•Hale’sBlueBoy• Ovaltine• Nescafé• Kraft• Mae Pranom• Nguan Chiang• Roza• Golden Mountain•Choice• Pantai Norasingh• Or Sor Ror• Maggi• Maxchup• Chao Koh• Mae Ploy• Brand’s Quince Balance• She-Cow• Yan Wal Yun - Deksomboon• Mae Krua• Gold Label• Squid• Sinsamut• Heinz

• Best Foods• UFC• Mae Sri• Takrai• Mabin• Hi-Q• Sukhum Panich• Doikam• Imperial• Tiparos• Takee Yan Wal Yun• Sriraja Panich• Suree Interfood• Moradok• Exotic Food• Pure Foods• Oyster Fish Sauce• Chon Thong• Kaset Brand• Tesco• Khumkha• Tops• Savepak• Aro• DeluxSoft•Carrefour• Giffarine • Suree• Pichai• Lobo• Cook Thong• Mae Jin• Aroy-d

• Taste Nirvana• Pan• Sun Sauce• Chang Thong• Chua Ha Seng• Nam Jai Brand• Rajah• Tra Koong• Grand Monte•Vidhayasom• Sara• Penpark• Vejpong• Morseng• Waugh’s Curry• Super Save• Leader Price• Kung Thai• Penta• Por Kwan• Dede• Thai Delight• Good Life• GHP• Suanjitladda• D7• Neo Suki• Silverlake Vineyard• Naturich Abalone Brand•Villagefarm•Cofe• Mont Fleur• Blink

262 263262 263


Personal Care Productions :• Dettol Soap• Babymind Soap

• Avon Soap• Avon Cosmetics• Nivea Cosmetics• Natriv Cosmetics

• Degaze Cosmetics• Sugus• Coryfin C• Sweet Perfect

International Business GroupSnack Food Products under Jacy Foods SDN BHD• Wise•Calbee

Brands We RepresentIndustrial Supply Chain

Engineering Division• ACL• AKAPP• Albany•Chase• Columbus McKinnon• East Power• Erskine• Fairbanks• Fenner• Hoppecke• iWind• J.D. Neuhaus• Kelley• Raynor• Richard Wilcox• Siemens• TDC• Woma•Yale

Technical Supply Chain

Medical Product Division• 3M• Ansell• Astellas Pharma• Bayer Shering Pharma Oy• Bio Sidus• BPL •Haidylena• CJ Corp.• Daito• Dr. Willmar Schwabe• Eurodrug• Genzyme• Kaketsuken• Micro Lab• SMB Technology• Pharmathen• Pierre Fabre• Schwarz Pharma

• SciGen• SK Chemicals• Bharat Serums and Vaccines• Synthon• Teijin• Taiko• CCM Pharma• Venus Remedies• Will Pharma• Rheamed Biotechnology

Medical Imaging Division• Agfa• Aloka• Alsius• Angiotech•Barco•Bard• EBM Technologies•Hologic• Shimadzu• SonoSite• Technidata Medical Software•Hitachi• Dilon• Medtron• Neurologica• PenRad• Supersonic

Medical Equipment Division• AC International Srl.• Ahlstrom Specialties•Carefusion• Chattanooga Group Inc.• Cincinnati Sub-Zero - CISA Products, Inc.• Diter Eletroniikka OY• Electro Medical System S.A.•HuntleighHealthcare• Imperial - Intuitive Surgical Inc. (da Vinci)• Laerdal Medical AS

• Leica Microsystems (Schweiz) AG• Lisa Laser Product OHG• Lumenis• The Magstim Company Ltd.• KLS Martin Group• Medigloves• Microtex• P.M.A. and Medical - Protextra (Dr. Boo)• Richard Wolf GmbH• Saha-Boonthong• Schaerer Mayfield• Union Micronclean

Technical Product

Stationery & Graphics Division

Stationery :• 3M• Double A• Stabilo•UHU•Copal

Graphics :• Agfa• Hp Indigo• Luscher• Quote & Print• Taopix

Specialties Division• AB Mauri• Adichem• Bakels• Berry Pharma•Biospectrum•BradChem• Chao Khun Agro Products•Climax•Cosmetochem• Creations Couleurs (CIT) • Danisco

• Decas Cranberry Products, • Decas Botanical Synergies• DSM Fine Chemicals• DSM Food Specialties• Droste• Dupont• Dutch Cocoa• Elco• Firmenich• IDI• InnoVactiv• IOI Loders Croklaan• Jan Dekker International• Kee-Seal• Kemira ChemSolutions• King Industries• Majulah Koko Tawau• Metal Working• Novus International• Petroferm Inc.• Phode• R.T. Vanderbilt• Rubia Industries• Sachtleben• Syral• Stratum• Tate & Lyle• The Malt Company• Thermphos• Toyo Hakko• Trisco Foods• Tri-K• Unipex Innovations• Yunehing FOS


•Chitralada• Droste• Kirin• Kato fruit juice with Nata De Coco• Kool Koko fruit juice with Nata De Coco


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...BJC is proud to be committed to the protection and preservation of the environment and this is reflected in every stage of our business operations. For almost one hundred and thirty years, BJC has adhered to the concept of minimizing its impact on the environment...

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Environmental Engagement

The conservation and protection of the environment is one of the most important global issues facing humanity today. At BJC, we believe that everybody has a social responsibility to help in solving the world’s environmental problems. BJC is proud to be committed to the protection and preservation of the environment and this is reflected in every stage of our business operations. For almost one hundred and thirty years, BJC has adhered to the concept of minimizing its impact on the environment. At the raw materialprocurementstage,BJConlyselectstrustablesupplierswhooperatetheirbusinessesandsupplygoodsthatarefriendlyto the environment.

In our paper business, for example, we ensure that our raw material suppliers have received ISO 14001 certification to prevent the problems of environmental and resources usage. The aforesaid ISO will be requested for that certification in 2011.

Apart from streamlining its production processes to increase efficiency, BJC is continuously looking at ways to cut down on its energy consumption or use clean energy alternatives. This not only reduces the use of the raw materials used to make energy but also results in considerable cost savings for the company. That is less consumption of energy helps to conserve the environment. We use alternative and renewable energy sources such as NGV (Natural Gas for Vehicles) which is a natural gas which burns cleanly in all of our manufacturing processes. BJC has worked closely with the Japan Center of Excellence and other external institutionstodevelopinnovativesolutionstoreduceandmanagethewasteproductsderivedfromtheproductionprocessesatBJC’s factories. In addition, many of the discarded materials from these factories are reused, recycled and processed into new products in order to reduce the need for expensive and environmentally damaging waste management methods.

In our production facilities, BJC at all times tries to utilize recycled materials wherever possible. In the production of glass bottles, BJC always uses cullet as its raw material for its new products, BJC recycles over 60,000 tons of cullet per year. In regard to the packaging of its products, BJC has adopted a successful ‘packaging return’ policy which promotes the collection of used caps and cans from consumers for recycling into new products. The Company is also proud to be a strong supporter of the “The Prostheses Foundation” a charitable organization which uses donated scrap aluminum to produce and supply free of charge, quality artificial prostheses limbs to individuals who have lost arms and legs as a result of war, birth defects, car, motorcycle and industrial accidents. These limbs made from essentially aluminum waste have an enormous impact on the lives of the recipients, allowing them to regain mobility, obtain employment and dignity.

Furthermore, BJC has effectively controlled the electric energy, water, fuel oil and other resources for manufacturing namely, reduction of man power, paper, stationary and chemicals throughout economical air-conditioned No.5 substituted for the damaging one as well as reused water to clean the floor and pour the tree.

BJC’s commitment to green environmental practices is also applied in its transportation and warehousing divisions. The vehicles in its transportation division use only clean fuels such as natural (NGV). In its warehouses, the company uses innovative building design features and technology to reduce electricity consumption within the warehouses.

BJC’s commitment to responsible environmental practices, corporate social responsibility and adherence to theprinciples and guidelines of the ISO 14001:2004 management program has received much acclaim from the communities it works in and from the corporate community alike. Recently, BJC has been certified ISO 9001:2008 and the ISO 14001:2004 certification for its Ratburana and Bangplee plants. In 2010, the Company has implemented OHSAS 18001: 2007 (Occupational Health and Safety Management System) and has been certified on 17 January 2011 which will be expanded to Bangplee plant next year. Moreover, we have introduced Six Sigma methodology to effectively meet our customers’ satisfaction and marketing with the operation process which is rid of any defect.


...BJC places priority on the social responsibility together with business operations. Especially, in the area of educations which is an important foundation of social development...

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BJC places priority on the social responsibility together with business operations. Especially, in the area of educations which is an important foundation of social development. We support educations by various programs asfollow;

BJC Foundation Scholarships

We have granted scholarships to undergraduate students since 1992 in order to help students who have good academic performance but lack of financial supports for better educational opportunities. In 2010, we granted scholarships to 43 students in the amount of 1,224,000 Baht and arranged the relationship activities among the students to provide them the opportunities of social skills enhancement, exposures to corporate working environment and to make them get ready to enter labor market after graduation.

Employees’ children Scholarships

We also support educations by providing scholarships to employees’ children in two categories. Employees’ children who fulfill the academic criteria were granted the outstanding academic performance scholarships and the financial support scholarships were granted to the other cases. In 2010, we granted scholarships to 101 employees’ children in the amount of 590,500 Baht.

Remote School Aid Program

We have run a program for schools in remote areas by searching and selecting schools to support the various kinds of needs such as buildings and educational materials for more than ten years.

Besides supports in educations, BJC also concerned about people in Thailand who suffered from natural disasters. BJC and our employees joined together in donations of money, appliances as well as company’s products to help people relieve their troubles.

Corporate Social Responsibility


BJC has been successfully operating its business both in Thailand and internationally, including Malaysia, Vietnam, Myanmar and Cambodia. This success could not have happened without its employee dedication to hard work and success.

Human Resources Management and Development, i.e. Compensation Package, Job Band and Position Structure have been adjusted and developed throughout the year 2010 in order to out-perform other competitors.

Moreover, BJC has tried to build and strengthen employee engagement with Corporate Culture and Value in order to create Leadership Development for all level managers to support sustainable growth of the BJC.

Furthermore, in this year BJC in corporation with BJC Foundation has granted 23 scholarships without condition for good graded university students with financial difficulties. At present as from previous years we have granted in total 43 scholarships. Our dedication to the welfare of our employees is demonstrated by being awarded for four consecutive-years the “Honour Award as an Outstanding Establishment for achievement on Labour Protection and Welfare” given by the Minister of Department of Labour Protection and Welfare, Ministry of Labour.

Human Resources Management and Development

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* In 2006 be restated for comparing

5 - Year Financial Highlights

Total Revenues (Baht million) 26,421 23,134 22,634 19,399 18,022

Net income (Baht million) 1,905 1,262 1,082 1,255 989

Gross Profit Margin (%) 27.38% 24.57% 21.49% 24.03% 24.87%

Net income (%) 7.31% 5.54% 4.86% 6.55% 5.61%

Earning per share (Baht)* 1.20 0.79 0.68 0.79 0.63

Interim Dividend per share (Baht)* 0.25 0.12 0.15 0.15 0.15

Year-end Dividend per share (Baht)* 0.35 0.21 0.15 0.21 0.15

Total Dividend Payout Ratio (%) 50.01% 41.52% 44.04% 45.57% 54.60%

Current Ratio (Time) 1.22 1.45 1.30 1.06 1.02

Net debt to shareholders’ equity ratio (Time) 0.64 0.53 0.63 0.49 0.36

Working Capital (Baht million) 2,124 3,216 2,176 426 145

Total Assets (Baht million) 27,196 23,036 22,813 19,643 17,618

Return on Total Assets (%) 7.01% 5.48% 4.74% 6.39% 5.61%

Net Shareholders’ Equity (Baht million) 11,419 10,351 9,555 8,988 8,189

Return on average Net Shareholders’ Equity (%) 17.51% 12.68% 11.67% 14.61% 12.38%

Number of equity shares (‘000) 1,588,125 1,588,125 1,588,125 1,588,125 158,812.5

Book value per share (Baht) 7.19 6.52 6.02 5.68 52.16

Par Value per share (Baht) 1.00 1.00 1.00 1.00 10.00

Number of employees 6,471 5,743 5,149 4,792 4,649

2010 2009 2008 2007 2006


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...Our direction in 2011 will remain focused on our customers and business commitments. We are committed to improving Safety, Quality, Productivity, Supply Chain and People Development. The integration of Lean and Six Sigma will be implemented and will result in developing sustainable positive development and continuous change...

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Packaging Products Division

In spite of the unrest during April - May 2010 and the strict control of sales and advertising activities of alcoholic beverages, sales of our Packaging Products Division in 2010 surged by 15 percent over the previous year. The main reasons were higher demand from Thai Beverage Recycle Co. Ltd., and major customers in the food and beverage segments.

Mid-year BJC entered into a 50:50 percent joint-venture with Owens-Illinois (O-I), the world’s largest glass manufacturer and acquired Malaya Glass Products Sdn., Bhd., from Fraser & Neave Holding Bhd. Malaya Glass has factories in Saraburi/Thailand, Sichuan/China, Johor Bahru/Malaysia and Ho Chi Minh/Vietnam. BJC and O-I will jointly manage the factories in Malaysia and Vietnam, while BJC will take over the shareholding and management of the plant in Thailand plant and O-I will run the operation in China.

In this context our glass manufacturing capacity in Thailand increased from 2,445 tons/day to 2,735 tons/day, and over 3,300 tons/day in total including the Malaysia and Vietnam factories. Therefore, we couldmeettheincreaseddemandfromourcustomersinthevarioussegmentsduringthesecondhalfof2010, resulting in significant growth for our Packaging Products Division.

It is expected that in 2011 performance will continue to grow, despite the rising cost of major raw materials, as increased demand from both the local and export markets will ensure full capacity utilization at TGI.



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Thai Glass Industries Public Company Limited

2010 was a successful year for Thai Glass Industries Public Company Limited (TGI). This success derived from a 15 percent sales increase compared to 2009 and increased focus on Safety, Quality and Productivity Improvement, as well as lower costs for major raw materials; resulting in the best performance of TGI operations in the past five years.

In the first quarter of 2010, the integration team from TGI supported OI and BJC in the acquisition of Malaya Glass Products Sdn., Bhd., from Fraser & Neave Holding Bhd. This has increased TGI’s competitiveness and will best serve the rising demand for glass containers in the long term.

At present TGI is certified ISO 9001:2008/ISO 14001:2004 at both the Bangplee and Rajburana plants and our business continues to evolve, not only in Quality and Environmental Management but also in Safety. This is to ensure that our employees have a safe place to work and, in 2010, TGI implemented OHSAS 18001:2007 (Occupational Health and Safety Management System) at the Rajburana plant and this will be extended to the Bangplee plant next year. Moreover, we have introduced Six Sigma methodology to more effectively satisfy our customers. TGI has also received awards for being a good labour relations company in both the Bangplee and Rajburana plants by the Ministry of Labour for 3 consecutive years.

Our direction in 2011 will remain focused on our customers and business commitments. We are committed to improving Safety, Quality, Productivity, Supply Chain and People Development. The integration of Lean and Six Sigma will be implemented and will result in developing sustainable positive development and continuous change.

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Malaya Glass Group of Companies

In 2010 BJC entered into the joint venture with Owens-Illinois (O-I) to acquire shares of Malaya Glass Products SDN. BHD. (MGP) from Fraser & Neave Holding Bhd. MGP held 70% shared in Malaya Vietnam Glass Limited (MVG) and Thai Malaya Glass (TMG) which have then made MVG and TMG become part of BJC group from this business acquisition and BJC Group becomes the biggest glass manufacturer in Southeast Asia.

MGP locates in Johor, Malaysia with production capacity of 425 tons per day. The company is the largest glass manufacturer in Malaysia with more than 70% market share in the Malaysian market.

MVG locates in Ho Chi Minh City, Vietnam with production capacity of 173 tons per day, and market share of approximately 60% in Vietnam.

TMG has production capacity of 290 tons per day. The company locates in Saraburi Province, Thailand in an industrial park with natural gas pipeline and BOI tax privilege allowing TMG to achieve lower manufacturing costs.

We look forward to the business achievement in 2011 even though the over supply of glass container is still a challenge but the high potential of economic pick up will be an opportunity for market growth.


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Thai Beverage Can Ltd. (TBC)

Thai Beverage Can Ltd. (TBC) is a manufacturer and distributor of two-piece aluminium cans and ends for beverages and beer, incorporating customer designs and trademarks. The company administration office and manufacturing plant cover 56-2-75 rai and are located in SIL Industrial Land in Nongkhae, Saraburi. There are two warehouses with storage capacities of 28,800 sq. m. and 4,800 sq. m., respectively. Currentlythecompanyhastwostate-of-the-artcanlines,twostate-of-the-artendlinesandonecoatingline and is using advanced technology from Ball Corporation, a leading packaging company in the United States. TBC is certified in ISO 9001:2008, ISO 14001:2004, ISO 22000:2005 and Good Manufacturing Practice (GMP).

The can-making industry requires advanced can-making and end-making technology, combined with high-volume production, in order to achieve low cost of production. As a result, there are only three can-making companies in Thailand and TBC is one of the largest.

In 2010 TCB sales increased by over 10 percent from 2009 due to higher aluminium can and end demand, both in Thailand and in the region. With highly efficient production planning and decreased down time, the company has been able to increase production capacity without investment or expansion. The company has been working closely with both domestic and overseas customers to fulfil their requirements, with 75 percent of production supplied to local customers and 25 percent exported.

The company has implemented energy saving projects to increase energy efficiency. In addition, the company has focused on packaging returns from customers in order to save natural resources and reduce the cost of production. TBC also recognises its social responsibilities and has been working with the Pollution Control Department to create awareness among the public that they can donate used aluminium cans to the Prosthesis Foundation of H.R.H. the Princess Mother where they are used to make artificial legs.

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Berli Dynaplast Company Limited

After a very successful year in 2009, Berli Dynaplast continued to grow in 2010 with sales increasing by 14 percent, outgrowing the 5 percent total category of plastic packaging. Volumesweremainlydrivenbyproductsforpersonalcarethatwereleastaffectedbythepolitical instabilities in 2010.

Since late 2009 production capacity reached maximum output as well as manufacturing space availability and the Board of Directors approved a 200 million baht capital investment toconstructanewfactorybuildingandinstalladditionalmachineryandautomatedlinestofulfil the rapidly growing demands of our customers. The new facilities will be completed inearly2011and,inthemeantimeinordernottodisruptsmoothdeliverytoclients,thecompanysourcedexternalstoragesandutilitiesthatincurredconsiderableextraexpensesand added to operating costs. However, thanks to dramatic increase in volume and closely monitored cost control, the company managed to generate a reasonable profit in line with the packaging industries.

The company has successfully maintained its position as a certified ISO 9001:2000, GMP and HACCP company and was honoured to receive the Supplier Partnership Award from Beierdorf Thailand after just 2 years of supplying Nivea products.

To upgrade the information system, the company implemented an SAP software programtoincreasetheaccuracyofproductionprocessingandrelevantfunctionaldatato enhance speedy business decision making.

Moving forward into 2011, upon completion of the new facilities the company is ready to expand into new product lines in response to customer requirements for wider product ranges. This is in line with the corporate long term strategy to sustain profitable growth and reduce the business risk of heavily relying only on current major products that have been manufactured and marketed for years.


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As the global warming crisis and scarcity of the world’s natural resources continue to rise in impact, the growth of green business is promising. BJC Engineering is always aware of the importance of corporate social responsibility and is striving to be a part of the green business. In the third quarter of 2010 we successfullylaunchedarenewableenergyproduct,iWind, a vertical axis wind turbine. Participating in several exhibitions, the new product has impressively gained a positive public response. Among other products in our portfolio, Racking System business had the most outstanding growth this year. The scales business also enjoyed a substantial growth as we succeeded in winning the bidding for several major governmental projects.

However, overall sales and performance of the Engineering Division in 2010 was lower than expected due to the uncertainty of the political situation and the ongoing global economic crisis. Moreover, the popularity of low cost products from cheap manufacturing countries like China and Taiwan has taken over a large market share in many industries. Whilst many companies have attempted to cope with these threats by repositioning themselves as “low cost”, we continue to stand for value and not just price.

In 2011 our target is to become a multi-channel trader and distributor. In the crane business we are searching for new partners with high quality products to replace the Morris brand which has been discontinued. In the racking system and scales business we will offer higher automated systems with total solutions. Pricing strategy will be revisited to provide our customers with the value they want, without compromising quality. Business restructuring strategy will be executed to cope with the dynamic market trend, along with implementation of other programmes to support next year’s business strategies. Obtaining ISO 9001 standard qualification has ensured our contribution to continuously improving our quality management system and to boosting customer satisfaction and loyalty. The key factor to achieving organizational goals is to sustain growth by continuously developing the efficiency of human resources.

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Thai-Scandic Steel Company Limited

In 2010 the performance of Thai-Scandic Steel Company Limited (TSS) significantly improved from the previous year, mainly due to domestic projects. Sales of transmission line towers to the Electricity Generating Authority of Thailand (EGAT) doubled from 2009 and two key projects awarded by EGAT were the 500 KV transmission line project in Udornthani province and the 230 KV transmission line project in Krabi Pangnga province.

Furthermore, the contract awarded by Theun Hinboun in Laos to design and manufacture 230/115 KV transmission line towers was almost completed in 2010

In addition to domestic growth, TSS is committed to continuing to grow in international markets, such as Nigeria on the African Continent and the Philippines and Cambodia in Asia. International projects awarded to TSS in 2010 were a 230/115 KV transmission line towers project for LTB and a telecommunication tower projects for Ramboll in Cambodia, and various substation projects and transmission line tower projects in several other countries. The ongoing effort in expanding the customer base internationally has leveraged the high concentration of domestic sales to fewer projects, such as transmission line projects.

With the largest ceramic-galvanizing bath in Thailand, TSS continued to offer high-quality galvanized steel products and services. In addition to ongoing productivity and efficiency improvement, TSS has implemented cutting-edge technological software for drawinganddesign,recentlyinstalledarobot-weldingsystemformassproduction,andhas upgraded its eight Computer Numerical Control (CNC) machines for steel fabrication, resulting in superior products and services delivered to customers worldwide.

With a strong commitment to quality and social responsibility, TSS successfully upgraded to the 2008 version ISO 9001 certification and has been accredited ISO 14001:2004. In addition, in mid-2010 TSS implemented the concept of the Total Quality Management program (TQM) in order to enhance customer satisfaction. Currently, TSS is in the process of obtaining the Occupational Health and Safety Standard certification, OHSAS 18001:2007, in order to enhance safety and provide a healthy working environment.


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...In local markets the current brands will continue to be reinforced and, in addition to the existing products, high value-added new products will be launched with the potential for growth both locally as well as other countries in Southeast Asia. Focus will also be on the development of distribution channels and expansion of product distribution to small retail shops...

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Consumer Marketing Division

In 2010, while the political situation during the first half of the year negatively affected consumers, the economic improvement helped consumer sentiment rebound during the latter half of the year. Our consumer business reported an increase of 9 percent over 2009 for consumer products and services. Specifically, products with the highest sales growth were soap and personal care products, tissue paper, snacks and beverages.

Local Markets :

Sales of Parrot Soap products grew by 5 percent over the previous year. Parrot’s market share of the total soap market also increased from 9.9 percent in 2009 to 10.8 percent in 2010. This increase was primarily due to positive market reception of Parrot’s strong positioning of “Value of Fresh Botanical Fragrance” through TV commercials and magazines. The brand position was further supported with the Vehicle Reward Raffle Campaign and sales promotion programmes in supermarkets, hypermarkets and retail shops throughout the country.

Sales of tissue paper products grew by 6 percent from the previous year, compared to general market growth of approximately 5 percent. Our above market growth was due to strong brand growth and new product launches, such as Cellox facial tissue paper and toilet paper, Botanis, Botanical Fragrance and Zilk Pop-Up Tissue Paper. We launched marketing campaigns emphasizing unique selling points of Cellox Purified with Micro-ban, our anti-bacteria tissue paper and also launched campaigns for Zilk, focusing on the brand’s unique selling point of smoothness, softness and value for money. These marketing campaigns were launched through TV, radio and magazines and, in addition, we continued to carry out



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sales promotional programmes and merchandising programmes. As a result of our continued marketing efforts, both above and below the line, the tissue paper business has maintained market leadership with a 38 percent market share and has expanded its customer base to include institutional users, both in Bangkok and in the provinces.

The Snacks and Beverages business continued to face strong market competition, especially in the potato chip and rice cracker categories. The Tasto Potato Chips brand continued to focus on a young and modern image, with promotions through marketing campaigns using the presenter, “Pe” Arak Amornsuphasiri, on the internet, TV and radio. Dozo Rice Crackers returned to the brand position of cosiness and sharing; in addition Dozo also launched a new “Hotto Yaki” flavor. As a result of these activities, Dozo sales increased by 22 percent compared to 2009. Campus chocolate-coated extruded snacks continued to focus on direct sales promotional programmes and marketing activities and, as a result, 2010 sales increased over 2009 sales by 10 percent. Finally, Kato fruit juice with Nata De Coco, distributed by BJC, continued to grow with a sales increase of 33 percent over the previous year.

In 2010 BJC launched numerous new products. In our Foods and Beverages categories, for example, we launched Campus Choco Drink, developed from Campus chocolate-coated extruded snacks which are well-known and popular among 8 - 12 year-olds. Campus Choco Drink is a UHT chocolate-flavoured drink, rich in vitamins and minerals, and the fragrant chocolate drink package contains a “4-Directional Super Fun” tube, making the Campus brand more exciting to the target group. Likewise, our Personal Care line has developed and launched new cosmetic products with Smoothie Juice in Berli POPS Cosmetics, i.e. smoothie facial foam, glitter sheer foundation powder, smoothie maxi gloss and smoothie lip balm, aimed towards the 18 - 25 year-old ladies target group through TV commercials and other publications in order to achieve target group recognition and eventual acceptance by this group.

Distribution Channels :

Distribution channels have been developed in order to underlie growth of the changed retail shop structure, and to spread products distributed by the company to cover retail shops all over the country. For Modern Trade, such as hypermarkets, supermarkets and convenience stores, the company used itsbudgetonsalespromotionalprogrammesandmerchandisers,sothatthecompany’sproductscanbe easily found and efficiently competitive. With wholesale shops all over the country, the company has developed sales targets, merchandisers and distribution channels for small retail shops. The number of retailshopsthatdealdirectlywiththecompanyhasbeenincreasedto50,000shopsin2010anditisplanned to increase this number to 100,000 shops in the near future.

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Overseas Markets :

Sales volume in overseas markets has increased by 11 percent from 2009; namely, 17 percent from soap products, 11 percent from tissue paper products and 9 percent from Snacks, with the focus on marketing to Indochinese countries, i.e. Vietnam, Cambodia, Laos and Myanmar, including Malaysia and Singapore.

2011 Business Plans :

In local markets the current brands will continue to be reinforced and, in addition to the existing products,highvalue-addednewproductswillbelaunchedwiththepotentialforgrowthbothlocallyaswell as other countries in Southeast Asia. Focus will also be on the development of distribution channels and expansion of product distribution to small retail shops. For the distribution business, the company hasheldcontinuousdiscussionswithseveralproductownersandwillbegintodistributetheirproductsfrom the first quarter of 2011 onwards.

In overseas markets, the company will continue to focus on the development of distribution channels and increase investment in sales, marketing, the company’s products and distribution services provided for other product owners.


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Berli Jucker Cellox Limited

In 2010 Berli Jucker Cellox remained the market leader, both in terms of sales quantity and sales value. Our market share was 41.8 percent based on quantity and 38.4% based on value. In the medium to economy tissue segments, our Zilk and Belle brands continued to perform well and in the facial tissue segment, our market share was 21.3 percent due to increased sales of our brands Zilk Facial, Melona and Cellox Purify. In addition, our Cellox and Maxmo brands were also successful in the all-purpose tissue segment. Berli Jucker Cellox marketed our brands through point-of-sales marketing and general advertising and promotions, especially for the Cellox and Maxmo brands. Through these marketing activities and programmes we also launched new products, such as Cellox Purify Botanis, which is our anti-bacterial botanical-scented tissue. These new product launches were well received by the market, further increasing 2010 sales by 9 percent compared to the previous year.

Berli Jucker Cellox continued to be successful in our institutional business, especially outside Bangkok, and we received a strong customer response from customers in the hospitality segment. In addition, we havemovedaggressivelytoincreasesalesinneighbouringcountriesandbegansellingourproductsinMyanmar in 2010.

Key raw material prices in 2010, especially for wood pulp and recovered waste paper, increased by 20 percent compared to 2009. In response to these increases, the CPC mill made very successful

efforts to improve production efficiency through cost reduction projects and,asaresult,wewereabletorecovermostcostincreasesfrom raw materials price inflation. The company also increased production capacity for interfolded tissue for facial pop-uptissues and towels and imported a wrapping machine from Italy to produce better suited package sizes and shapes required by customers.

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The company received ISO 9001:2008 certification and adopted the quality management philosophy of Total Quality Management (TQM) and Total Productive Management (TPM) in managing day-to-day manufacturing. We were also selected by the Technology Promotion Association (Thailand-Japan) under the sponsorship of Industrial Ministry of Thailand to be one of the participants in Lean Manufacturing Best Practice in 2010, which provided our employees with many opportunities to learn how to effectively minimize operational waste. We have also been working with Laboratory Accreditation ISO/IEC 17025 to achieve an international standard and expected to be accredited by early 2011.

Apart from the work and quality systems above that we have adopted, we have also been encouraging our people to care for the community. This project was undertaken through ISO 14001; 2004 and OHSAS 18001:2007 certification which will be completed by early 2011. Community care has always been and remains a core value of Berli Jucker.

With regard to the outlook for 2011, we believe that raw materials prices will continue to play a major role. Prices of wood pulp and recovered waste paper in 2010 drastically increased from January at 720 USD (NSWK-northern softwood kraft) to 980 USD in July but softened to around 800 USD in the fourth quarter. However from early this year, pulp price has started to gradually increase again to 820 USD and we believe that pulp price will remain stable at this price level for a further 6 months and then will gradually increase again following the forecast of economic improvement in the USA and Europe in the second half of the year. Commodity price increases will likely occur in the oil, natural gas and LPG markets as well. In addition, the government has announced a minimum wage increase nationwide and this wage increase will affect other raw material prices, making general production costs higher in 2011 than in 2010. Nevertheless, the company will continue to improve production efficiency through previous and new cost reduction programmes and projects. Likewise, we will continue to improve our sales volume in order to sustain a strong business performance in 2011.


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Berli Jucker Foods Ltd.

Key factors that affected Berli Jucker Foods in 2010 include increased market competition, political instability, domestic floods, economic recession in the first half of the year, substantial raw material price increases and Berli Jucker Foods activities to launch new products, specifically the Campus chocolate drink. These factors resulted in a total increase in company revenue of 6 percent compared to the previous year. Profit after tax decreased by approximately 20 percent compared to the previous year.

Throughout 2010 the company developed and regularly introduced new products to the market, namely Dozo Baby Bite snack for young children, Dozo Hotto-yaki rice snack, Plern Spicy Squid fried snack, Tasto Alaska Crab potato flavoured snack, Seaweed Shrimp Tempura potato flavoured snack, Hot and Spicy Seafood potato flavoured snack, Bitie Nano Seaweed flavoured fried snack, Super Tomato Sauce flavoured snack and Party Strawberry Beads flavoured snack. The company also employed Thai Diary Industry Manufacturing (TDIM) Company Limited to produce the UHT Campus Choco Drink for domestic distribution.

Berli Jucker Foods executed various programmes to lower operating cost and to enhance efficient use of capital. These programmes included consistent governance of productivity, safety systems and other quality standards. The company also proactively promoted Total Participative Management (TPM) programmes in which all employees throughout the organization contributed. In addition, the Japan Centre of Excellence (JCOE) also provided Berli Jucker Foods with guidance and advice on the company’s operational improvement programmes to further improve results. In addition to internal system and effectiveness improvement, the company actively worked with external parties to reduce and convert factoryoperatingwastesforreuseinorderto lessentheenvironmental impactandtocreateabetterliving environment for the community. In 2010, due to the programmes mentioned, Berli Jucker Foods was granted ISO 18001 Safety Management Certification, together with an Environmental Good Governance

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Award and SR Mark (Social Responsibility Mark). The company also currently holds certification in manufacturing health and sanitary standards, GMP, HACCP, Quality Management System ISO 9001:2008 and Food Safety Standards ISO 22000. Berli Jucker Foods vision and commitment is to create the best value and satisfaction for customers at all levels.

Looking forward to 2011, the company will continue to deliver innovations in response to consumer needs, as well as to expand our business base and market opportunities through new food categories both domestically and internationally. Likewise, in response to increased raw material and fuel prices, Berli Jucker Foods will continue to effectively manage operating costs and capital. We believe our focus on innovations and cost management will result in the company maintaining a competitive advantage in the market and in resulting net profits. In 2011 the company plans to modify and improve its activities for the Six Sigma quality programme, ISO 14001 environmental programme, ISO 50001 energy management programme and Good Agricultural Management programme (GAP: Good Agricultural Practices). Internationally, Berli Jucker Foods plans to further expand its South East Asia investments, while domestically the company plans to further expand its production base at Bangplee to accommodate further increase in demand.

Finally, Berli Jucker Foods continues to focus on personnel development in order to maximize the potential and capability of individual employees and to align our people with the company’s cultures and core values. With these commitments, Berli Jucker Foods is in the process of establishing our own Manufacturing Learning Centre (TPM Competence Centre) with the goal of creating a Knowledge Based Organization (Knowledge Management Centre) and Multi-Skills Management Centre. We believe that such enhancements to the organization will increase our strengths and further support our regional business expansion in the near future.


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Rubia Industries Company Limited

In 2010 the company sales revenue and net profit rose by 4 percent and 2.8 percent respectively compared to the previous year. The sales increase mostly came from our Parrot “Botanicals” Soap Bar. Overall, Parrot Soap Bar achieved above target sales in 2010 and, based on results from Market Share Research, Parrot Soap Bar was the second best selling brand in the bar soap market and the third best selling brand in the overall soap market.

For the manufacturing service business in 2010 sales decreased by 5.5 percent from the previous year, primarily from lower sales of personal care and candy products in the domestic market. On the other hand, sales of exported candy products increased compared to 2009. The company was also contracted by Reckitt Benckiser Company Limited to produce Clearasil bar soap and exported this product to Reckitt Benckiser (Mexico) Ltd.

Throughout 2010 Rubia Industries focused on maintaining and improving its quality system and standards, including GMP, ISO 9001, HACCP, TQM and TPM projects. Our soap and food manufacturing plantshavebeenupgradedandfoodproductionoutputincreasedfrom8,050tonsto8,800tonstomeetcustomer demand. In addition, the company continued to improve productivity and quality through Cost Saving Projects, i.e. Energy Conservative Project, Total Quality Management (TQM) Project and Total Preventive Maintenance (TPM) Project. These projects were carried out efficiently and all employees were involved. In addition, to enhance and strengthen our culture, the company also undertook Organization Core Values and Corporate Culture programmes, implemented together with our Employees’ Behaviour Base Safety Project.

In 2010 the company also established a Research and Development (R&D) Centre to develop new products to serve the needs of both existing and potential new customers. In addition to our R&D Centre, Rubia Industries also implemented a Customer Relation Management (CRM) project to better serve customers. To standardize laboratory quality, we also implemented international quality standard projects, such as ISO/IEC 17025, and our laboratory has passed the Proficiency Chemical Test of the Department of Medical Sciences and the Proficiency Microbiology Test of the National Food Institute. To strengthen

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key personnel capabilities the company implemented competency development programmes involving training, job rotation and team and teamwork creation projects.

Rubia Industries also realizes the importance of community care and, as such, through our Policy of Corporate Social Responsibility (CSR) in 2010 we supported and initiated projects and activities such as :

1. Environmentally Friendly Production Project

2. Energy and Production Resource Conservative Project

3. Friendly Community Project

4. Public Charity Project.

With regard to the company’s direction for 2011, we will continue to emphasize the development of new products to meet the demands of both new and existing customers. The company will also focus on attracting a greater variety of customers in order to further expand our market. To strengthen our organizational capabilities the company plans to further improve employee capabilities by organizing workshops and personnel development programmes. We will also continually adjust employee roles and responsibilities to better respond to the competitive landscape in 2011.

In 2011 we believe raw material costs, which have been increasing since September 2010, will continue to rise. In response the company has developed alternative sources and new suppliers for materials in order to improve product costs. The expanded sourcing base is designed to ensure more efficient manufacturing and achieve more effective production and Rubia Industries continues to improve our quality, processes and waste reduction. Finally, the company will continue to provide honest and fair servicestoourcustomersthroughmutualagreementsandwebelievethisphilosophywillcontinuetoensure our success in 2011, as it has in the past.


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Berli Jucker Logistics

The economic recovery led to increased sales for both internal and external customers, resulting in a higher demand for logistics services and bringing a revenue increase of 13 percent over the previous year from strong growth in warehousing and transportation. Customs Brokerage Services and Haulage Services mainly contributed to the increased revenues, despite lower revenue from freight due to reduced exports by customers.

During the year Customs Brokerage Services (CBS) gained new customers, namely Siam Food Products, Thai Malaya Glass, Conwood and SRF Technical Textile. In addition, there are also many new prospective customers in the pipeline and demand for Customs Brokerage Services has been growing following the increase in imports and exports. As a result, there are many opportunities for CBS to grow from both internal and external customers.

For Warehousing and Transportation, volume throughput has increased by 15 percent over the previous year. The increase in sales volume from customers contributed to higher storage utilization with one external warehouse of 5,000 sq. m. being added to meet additional requirements and to offer lower operating cost to the customer. Furthermore, in order to meet the customer requirements for intensive distribution for fast moving consumer goods (FMCG), one Regional Distribution Centre (RDC) has been set up as a pilot project in Nakornratchasima to improve delivery lead time and stock availability. Berli Jucker Logistics also has a long term plan to add more RDC should customer demand increase in the future.

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In response to our strategic plan to expand our customer base by increasing business from external customers, our Business Development division has been successful in adding numerous new accounts, including Bakels (Thailand), Rosso, Mega Direct and Topics Gems (Thai). At the same time, we have able to retain current external customers through service quality and our Customer Relationship Management programme.

As we head into 2011, our strategies are to continue to focus on expanding our external business from high growth industries and through the addition of new services. Berli Jucker Logistics will continue to invest in building our IT capabilities, developing our staff and improving our processes in order to increase operational effectiveness. We believe these efforts will continue to be our platform to capture new customers outside the Group and to increase current customer satisfaction. The business outlook, given economic growth in Thailand and other Asian countries, is positive.


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Jacy Foods Sdn. Bhd.

Jacy Foods Sdn Bhd. is engaged in the manufacturing and distribution of mainly savoury snack food products. Our product line includes different flavour variations of potato chip products manufactured and distributed under the brand ‘WISE”.

Our domestic market, including East Malaysia, takes up about 70 percent of our sales and the remaining balance of 30 percent is from exports to other countries, such as Hong Kong and Brunei.

We also manufacture potato chips on an OEM basis for Calbee International Ltd., one of the largest snack foods manufacturers in Japan. Potato chips manufactured by us are exported by Calbee to their existing markets in Singapore and Thailand.

In 2010, through our concerted efforts to increase sales volume, total sales grew by approximately 17 percent, particularly in Peninsular Malaysia. On the domestic front in particular, market competition

remained strong, but with our crinkle-cut potato chip we were able differentiate our products and sold them through these unique product attributes. Through continuous efforts to engage with consumers, key distributors, wholesalers and modern trade, we were abletofosterastrongerpartnershipwithourpartners,despiteourbiggerandstrongercompetitors.

We believe 2011 will continue to be challenging, given an increasing number of active market participants, in addition, raw material costs will continue to rise, such

as cost of raw potatoes, RBD palm oleins and packaging film. We will continue to make efforts to source an alternative and cheaper supply of raw materials and we will also continue to improve our production efficiency in order to counterbalance the rising costs of raw material inputs.

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Thai Corp International (Vietnam) Co. Ltd.

Thai Corp International (Vietnam) Co. Ltd. (“Thai Corp”) is the leading distributor of fast moving consumer products distributed through modern and traditional trade throughout Vietnam.

In this last year over 300 Thai Corp sales people covered all distribution channels throughout every province in the country. In addition, cash van teams also provided faster services directly to wholesalers, dealers and retail stores.

Thai Corp is one of the first foreign companies to obtain a Trading Business License from the Vietnamese government, allowing the company to conduct a trading business, an import/export business and to distribute consumer products. Currently, Thai Corp has a distribution network in all 64 provinces, with 1,000 active dealers who cover around 50,000 retail stores in Vietnam.

Thai Corp is also the exclusive distributor for several leading products from Thailand, such as Red Bull energy drink, Three Lady Cooks canned fish, tissue paper brands Cellox and Zilk, and dairy product brand Dutch Mill. All of these brands are widely known and well accepted by the Vietnamese population.

From September to December last year sales of Thai Corp increased by over 10 percent. These strong sales were primarily from the sales performance of Three Lady Cooks canned fish and Red Bull energy drink, whose combined sales volume contributed more than 80 percent of total sales.

Looking ahead to 2011, Thai Corp aims to further serve consumers by representing more product categories, including a soy bean drink, sweetened condensed milk and instant foods. Moreover, we will alsoimplementabrandingstrategytobetterfocusanddifferentiateourbusinessimageandbrandsinVietnam.


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...The year 2011 will be a challenging year. However, the company also has expansion plans and is focused on sourcing new innovative products, optimum utilization of resources, ensuring better training for the sales force, building stronger customer relations, improving customer base and keeping each stakeholder’s needs in view...

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Medical Product Division BJChasaresearchbasedapproachandisdedicatedtowardsdiscoveringbetterwaystopreventandtreatdiseaseandimproveboththehealthandwellbeingofpeopleinThailand. The company is committed to providing its customers with innovative research products and represents numerous medical products from well-known domestic and overseas markets. Our therapeutic target segments include Orthopaedics, Rheumatology, Nephrology, Haematology, Cardiology, Urology, Paediatrics, Infection and related healthcare products.

In 2010 the company was in tune with industry growth of less than 10 percent comparedtolastyearandtheintroductionofnewproductsinthesupportandmedicalcompression stockings segment showed impressive figures with sales doubling compared to the previous year. Juxtaposed to that, 3M Nexcare first aid has shown marked progress and recorded double digit growth and the company’s research-based antibiotic fromJapan also contributed significantly to revenue generation. Furthermore, we introduced two potential new products in 2010, dialysers from Egypt that improve the quality of life for critically/chronically-ill patients with kidney failure and a novel antidepressant from France.

On the other hand, the company is facing problems of compliance with the General Comptroller Department and government purchasing policies which restrict reimbursement policiesandcertainproductshaveshownadeclineinsalesastheywerenotincludedin the Non-National List of Essential Drugs (Non-NLED). These policies have negatively impacted sales; specifically in the orthopaedic segment as the company has intra-articular injection and three vitamin/mineral products focused on the osteoarthritis and osteoporosis sub-segments respectively. Additionally, the company is facing stiff price competition from generic competitors from emerging markets, such as India, China and South Korea. The company’s therapeutic segments that were significantly impacted this year were haematology,nephrologyandhypoalbuminemia,andcompanyproductssourcedfromArgentina and the UK. Finally, although the political unrest in Thailand during May had a furtherbearingoncompanybusinessandlimitedexpectedgrowthrevenue,nevertheless,the company still maintained growth compared to the previous year.

ASEAN harmonisation of the pharmaceutical industry is now effective in Thailand and we have common requirements of regulatory systems and implementation. However, the Thai Drug Control Division, Food and Drug Administration, is currently posing hurdles, especially in regulatory approvals for new pharmaceutical products entering the Thailand market, and these have become increasingly stringent and time consuming, resulting in unavoidable delays. These hurdles are impeding our pace of pipeline development and new product launches.

The year 2011 will be a challenging year. However, the company also has expansion plans and is focused on sourcing new innovative products, optimum utilization of resources, ensuringbettertrainingforthesalesforce,buildingstrongercustomerrelations,improvingcustomer base and keeping each stakeholder’s needs in view.

Healthcare & Technical Supply Chain


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COSMA Medical COSMA Medical has a generic-based focus and is committed to improving the overall quality of life and wellbeing of the people of Thailand. The company is dedicated to sourcing medicines from emerging pharmaceutical markets, such as India, South Korea, Malaysia and Poland, and making these available at affordable prices without compromising quality. The company represents numerous medical products from well-known domestic and international markets and current therapeutic target segments include Endocrinology, Cardiology, Oncology, Haematology, Immunology, Vaccines, Antibacterial, Antifungal agents and related healthcare products.

In 2010 the company’s insulin brand contributed significantly to revenue generation and the company was successful in acquiring a 30 percent market share, mainly attributed to its exceptional marketing strategy. Currently the company’s insulin brand is only second to the innovator product and the insulin cartridge market has shown potential growth and is likely to be the growth driver in the future as well. This product not only helps in managing diabetes, but also its insidious ramifications like diabetic nephropathy, neuropathy and retinopathy. Moreover, the company’s recombinant erythropoietin has also shown a threefold growth and is bound to become a bestseller in coming years. After cancer was identified as one of the top causes of death in Thailand according to a statement issued by the Public Health Ministry, and following the company’s foray into the oncology segment, wehavemadeconsiderableprogressandsaleshaveshownamanifoldincreasedespitea price sensitive and competitive environment. The company also added two novel productsthisyear,ananti-fungal,whichhasalreadyreceivedasatisfactoryresponseinthe market, and a new life-saving medicine for use in cardiac disease. These new additions to the company product basket this year are promising candidates and likely to contribute towards company growth in the future.

In the absence of intellectual property protection, less innovative products are likely to be launched and will encourage emerging generic markets. The National List of Essential Drugs, purchasing policy and procurement methods are bound to define prescribing habits and, therefore, the future of Thailand pharmaceutical market is becoming very competitive and price sensitive, which is likely to be the guiding factor in its growth and development. The pharmaceutical market is witnessing a paradigm shift and we can observe dwindling drug pipelines and the patent expiration of a number of blockbuster drugs, which is expected to give an edge to the emerging generic markets resulting in competitive health economics. The growing awareness of the importance of health and increasingly aging population (+65 category) in Thailand, which is estimated to reach around 10.2 percent of the total population in 2015, will make this a lucrative market in future.

The company has a challenging task ahead in finding new suppliers in emerging generic markets that supply quality products, as we are committed to ensuring quality for our customers. Meanwhile, stringent regulatory and registration requirements have made new product launches a daunting task. Nevertheless, innovative marketing strategies, superior market penetration, improved training of the sales team, improved logistics and customer relation management are likely to define the prospective results in the price sensitive generic market and are likely to govern the outcome in the presence of ubiquitous competition in 2011.

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Medical Innovations Division

The Medical Innovations Division (MID) is a leading provider of medical imaging products and related services to the healthcare industry. These include distribution, training, installation and on-going technical and end-user support for digital radiography, general x-ray, mobile, fluoroscopy, cathlab-vascular and CT scanner, ultrasound imaging, PACS and LIS.

In 2010 MID has obtained dealerships for many innovative medical products including:

• “Laboratory Information Systems (LIS)” from TechniDATA;

• “the veinviewer™”- a breakthrough patented biomedical imaging system and ‘Innovation of the Year’ in TIME magazine- from Christie Medical Holdings, Inc.

• “InspiraHD” - The world’s first mobile High Resolution SPECT system from NeuroLogica

• “Breast-Specific Gamma Imaging System” from Dilon Technologies LLC uses a nuclear machine procedure to view the metabolic activity of breast lesions through radiotracer uptake, specifically images using a high-resolution anatomic-specific gamma camera.

These new products helped the MID product portfolio expand into the clinical laboratory area and to gain a presence in both the medical imaging and innovations product areas. In addition, MID continued to improve the efficiency and effectiveness of its organization, not only in response to the current economic climate but also, even more importantly, to strengthen its market position in the promising business of medical devices. MID carefully planned for cost reduction and re-organized our business, both to meet customer and market demands, as well as to enable profitable growth.

Marketing, sales and service channels are mainly direct to end customers. Products and services are sold throughout the country to academia, enterprises, clinics, physicians and home healthcareagencies.


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Medical Equipment Division In 2010 the Medical Equipment Division (MED) set its focus on and successfully became Thailand’s leading provider of innovative, cutting-edge equipment in the area of Surgery, Sterilization and Musculoskeletal Diagnosis. In addition, MED has made efforts in searching for partners with cutting edge, high quality and well-accepted international products. MED has been exploring new business opportunities, both inside and outside of Thailand, to ensure that the company grows financially every year with minimal setbacks.

In 2010 the political unrest that plagued Thailand and major floods in many areas resulted in a decrease in growth rate for Medical Equipment business in Thailand. Moreover, the medical budget reductions in both the government and private sectors hindered our ability to make successful transactions with customers. Nevertheless, with our best efforts MED was able to maintain market share value in the troublesome year of 2010 and secure new projects that will come to fruition in the coming year.

The crises that arose in 2010 will create more competition within the medical equipment industry in 2011. Therefore, MED is now well prepared to cope with any situation that may arise by developing new management systems as follows :

• A better service system was developed to improve the work quality of employees and ensure thatemployeesarewell-trainedtoserveourcustomers,bothindescribingandsellingourproducts,aswell as maintaining the functionality of equipment sold as part of a post-sale customer service plan.

• An SAP system was implemented to improve the work processes of the supply chain and customer relationship management.

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• An improved internal work process was developed to ensure that there is improved teamwork between employees and that company expenses are closely managed. In addition, employees have been trained to have the ability to work productively and efficiently while solving any problems that may arise.

Medical Instrument Section

Medical Instrument Section achieved much success in becoming a qualified distributor for the Da Vinci robot surgical system. The Da Vinci robot surgical system is a new innovation in minimally invasive surgical technology that makes surgery more precise, less time consuming and less damaging to the patient. The company was able to gain more recognition and acceptance in Thailand for the Da Vinci robot system by working with top local and international medical schools to set up training sessions for doctors to learn how to operate using this system. These training sessions developed brand awareness and increased the number of potential product buyers and users. This has given us the confidence that we can sell more Da Vinci robot surgical systems.

Medical Supply Section

In 2010 the Medical Supply Section was successful in the marketing and sale of its own sterile wrapping brand Protextra and product sales experienced a 100 percent growth, double the sales in the previous year. The increase in sales last year and positive feedback from our customers gave us confidence that we will be able to further expand the Protextra market base locally and establish new ground in international markets in the coming year.


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...focuses on building strategic partnerships with suppliers to provide the latest and most innovative solutions in graphics, stationery and specialty products. The supply chain focuses on improving technical competencies, market knowledge, regional coverage and customer relationships to sustain competitive advantages. The divisions represent leading international producers in their respective fields...

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Specialties Division

Despite negative factors arising from the international economic slow-down and political instability in the first half of 2010, the Specialties Division achieved strong sales and business growth.

Food Ingredients showed a substantial growth in sales revenue compared to the previous year. The success of Food & Nutraceutical Ingredients is also a result of new project development with key customers and business partners, especially the Tate & Lyle Group, DSM Food Specialties, IOI Loders & Croklaan and Thermphos International. Meanwhile Flavour Ingredients succeeded through a pro-active approach and co-development with our major principal Firmenich.

Industrial Ingredients witnessed continued growth in all three major sections through organic growth and the development of new business. The Refrigerants business achieved the set sales target through customer base expansion into OEM, despite facing a shortage of supply and an increasing prices trend. Petrochemicals Additives performance was on par with expectations. Feed Additives also showed significant growth from expanded market coverage into feed mills and farms, while developing new businessinothersegments

Sales of Bakery Ingredients continued to grow as consumers more readily accept new varieties of bakery products, which is the future trend. The bakery market appears to have more new bakery producers and also capacity expansion among existing producers. Our bakery technical services, along with recipe co-development closely with key clients, have led to our sales success,

Technical Products


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as well as the wide acceptance of our bakery ingredients in general. Droste Cocoa drink, The Nurse Brand, as well as Droste mixes have maintained good sales, although growth has been affected by the necessityofpriceincreases,causedbythecontinuousincreaseinglobalpricesforcocoapowdersince2009. Danisco ingredients maintained a leading position in product quality and technical support and haveshowncontinuousgoodsales,despitebeingchallengedbyincreasingpricesofrawmaterialsandmore intense competition in the market

Cosmetic Ingredients continuously increased sales from key principals, especially herb extracts, active ingredients and colour cosmetics. There were also new ingredients launched from our major principals that received very positive feedback from key clients. As a result business showed strong performance, despite being affected by finished cosmetic products imported from Korea.

Vietnam business has further expanded in Food Ingredients and Cosmetic Ingredients through the co-development of projects with new business partners. The major business, Feed Additives, has also continued to move forward despite facing outbreaks of cattle and poultry diseases and a dramatic increase in raw material prices in the second half of the year.

In 2011 the Specialties Division will focus on continued strong expansion, both in Thailand and Indochina, by enhancing the quality of products and services in order to become our customers’ first choice.

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Stationery & Office Supply Division

The improving economic trend since the second half of 2009 continued to have a positive impact on the stationery business throughout the first half of 2010. Despite political unrest in April and May, sales for the second quarter of last year still posted satisfactory growth over the same period of the previous year.

While 2010 started off in the first quarter with very strong sales over the previous year due mainly to the improving economic situation and the Government Thai Khem Khang stimulus programme, sales toward the end of the year were weakened by intense competition and the drought, floods and storms in many areas of the country. Overall sales, however, still managed to close the year with satisfactory growth recorded.

Higher consumption in different sectors, including the office, factory and government sectors, reflected stronger UHU sales this year. Both the All Purpose and Specific Glue groups posted double-digit sales growth following revival of the factory sector. Glue Stics, however, recorded smaller growth due to strong competition.

Stabilo grew at the same pace as UHU amid continued strong competition in the market, particularly for Point 88. Cheap imitation “look-alike” products continued to strongly impact our sales, which reflected a weaker performance this year compared to the previous year. Sales of Boss highlighters and Swing Cool, however, improved in line with the economic situation.

Like other stationery products, 3M sales started off the year with a stronger performance compared to the previous year. Political violence in the second quarter and natural disasters, including flooding and storms, in the third quarter seemed to have a minimum impact on 3M sales this year. 3M’s “point collection” campaign during March to August was well accepted and reflected extraordinary strong sales in August.

Double A also performed well, particularly during the first quarter of this year, as a result of higher spending from the Thai Khem Khang stimulus programme. Double A’s new product development project, including the launch of various new designs to meet the demand of targeted users, continued to help boost sales growth this year.

Overall the stationery business looks promising in the coming year. Higher consumption in both the private and government sectors, however, will be the major factor that will result in 2011 being another successful year for our stationery business.


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Graphics Division

In 2010 the company’s printing division had a very successful year. Sales and profits showed double digit growth as all business segments performed well, but the main focus was on packaging market penetration.

For HP Indigo digital offset printing, the company delivered and installed Thailand’s first HP6000 printer for a customer in the label and packaging industry. It is expected that sales of HP Indigo printers will continue to grow in 2011, for both industrial and commercial applications.

In the Computer to Plate (CtP) packaging sector, the company installed the first Flexography CtP at one of the biggest aluminium can manufacturers in Thailand. Our solution provided our customer with more flexibility to improve graphics on cans, thereby adding more value to their products.

Analog and digital plate sales grew consistently, although sales of Agfa CtP machines continued to slow down due to fierce competition in the market. The company expects to see a significant improvement following additional support received from Agfa towards the end of 2010. The Agfa Anapurna product, an environmentally friendly inkjet printer, showed promising growth compared to last year and Agfa cine film sales grew by over 200 percent over last year, due to strong expansion in the Thai movie film industry.

The company saw strong opportunities in related software business where we sold several Taopix software packages for the fast growing photobook printing segment. To further capture this opportunity, the company sourced new products, Quote and Print (the number one MIS software for printers) from Australia, as well as PaSharp (software for packaging) in order to boost sales in the printing sector.

In 2011 the Graphics Division intends to expand sales in the commercial market and in the label and packaging segments. Digital offset printing, the fastest growing printing segment in the world, is also expected to grow strongly in Thailand, which will benefit sales of HP Indigo. In addition, the company sees opportunities to do more businesses with government entities.

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T.C.C. Technology Co., Ltd.

T.C.C. Technology Co., Ltd. (TCCT) is Thailand’s leading carrier neutral provider of data centre services. The three core business offerings of TCCT are Infrastructure Services (including Co-location, Disaster Recovery, Interconnection and Network Connectivity; Operation Support and Monitoring Services), Managed Hosting Services (including SAP Hosted Services, Microsoft Hosted Services, Unified Communication & Collaboration Hosted Services and Virtual Private Server Hosted Services) and IT Outsourcing Services.

The goals of TCCT are to build on our leading position in Thailand’s data centre market, to facilitate the growth of our business and to meet the increasing demands of our customers for massive volumes of data storage and automated business processes. To accomplish these goals TCCT has decided to expand by 16,000 square feet on the second floor of our Bangna data centre site (operational since March 2010). Currently TCCT has 29,700 square feet of data centre capacity in Bangkok and surrounding areas.

The latest data centre, designed by IBM, is a pioneering model for an IBM-certified Reliability Level 3+ data centre, also designed for “green” energy efficiency and reduced environmental impact. This state-of-the-art data centre design meets our targets of ensuring industry compliance, enhancing business sustainability and improving customer experience.

After running mission critical hosting over cloud-like environments for many years, TCCT has again confirmed its leading position in the market by collaborating with Microsoft (Thailand) Limited to offer best-in-class cloud-based solutions and services. The partnership will help both parties reach a common goal of promoting virtualized servers and Microsoft Hosted Solutions, accompanied by real-time elastic computing availability, energy-efficiency and superior manageability, thus transforming the way in which businesses consume IT services.

For almost a decade TCCT has continuously developed IT best practices and certified management of these under ISO/IEC 9001:2008 and ISO/IEC 27001:2005 (Information Security). TCCT is now a Microsoft Certified Partner and the only Thai SAP Certified Hosting Partner as an SAP Adaptive Solution Partner.

As a result of overall business growth across core Co-location, Disaster Recovery and Managed Hosting services across both local and international customer bases, in 2010 TCCT increased revenue by 37 percent and net profit by 20 percent.

In today’s continually intensifying market conditions IT providers must differentiate themselves based on background, expertise and business focus. Our company focuses on ability to compete in the long-term, based on quality and benefits of services to customers, and is therefore regarded as the best of its kind in relation to business growth and potential. Furthermore, TCCT closely cooperates in marketing and technology development with regional foreign partners in the Asia Data Centre Alliance (or ADCA, consisting of TCC Technology (Thailand), CMC Telecom (Vietnam), 1-Net (Singapore) and the AIMS Group (Malaysia). The synergy among these carrier neutral data centre providers helps to strengthen the ability of each to compete in the global market.


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...develops new businesses in the Region, search for suitable acquisitions and overall supports the various BJC supply chains in their entrance into these markets...

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2010 was a very successful year for our international business and for expansion of BJC in the region. BJC International has its head office in Thailand, with branch offices in Vietnam and Myanmar, and develops new businesses in the region, searches for suitable acquisitions and provides overall support for the entrance of various BJC supply chains into regional markets. Once a company or a division has been acquired, management and responsibility will eventually be transferred to the respective supply chains, while distribution and other businesses outside the supply chains are managed by BJI.

The highlight of the year was the acquisition of Malaya Glass operations from Fraser & Neave Holdings Bhd., with four operating plants situated in Saraburi, Thailand; Sichuan Province, China; Johor Bahru, Malaysia; and Ho Chi Minh City, Vietnam. This acquisition was accomplished through a joint venture with Owens-Illinois, Inc., USA, the world’s largest glass packaging manufacturer. BJC and O-I will jointly manage the operations in Malaysia and Vietnam. BJC will assume majority ownership of the operations in Thailand and manage the Thai plant as part of existing BJC operations, while the Chinese plant will be managed as a part of existing O-I operations in China.

Furthermore, BJC through its subsidiary Thai Beverage Can Ltd., signed a Memorandum of Understanding with Ball Corporation, USA, one of the largest aluminum can manufacturers in the world, for the establishment of a aluminum can plant in Ho Chi Minh City, Vietnam. The plant is expected to be in operation in early 2012.

Jacy Foods in Malaysia, a company that was acquired in 2008, recorded a good performance and continued to strengthen its foothold in the snack food market.

BJC International further finalized the establishment of a 75 percent owned trading and distribution company, Thai Corp International (Vietnam) Co. Ltd., with a local Thai/Vietnamese partner. The company has been operating in Vietnam for several years and is a leading distributor of fast-moving consumer goods. This acquisition will further strengthen the Group’s expansion of consumer products in Vietnam.

The former Vina Glass Industries, located near Ho Chi Minh City, was purchased through BJI Hong Kong, and transferred to BJI (Vietnam), with the intent of expanding distribution of industrial products and establishing consumer products manufacturing.

In Myanmar BJC International was successful in increasing sales of glass containers and aluminum cans.

In 2011 the International Business Group plans to further expand into Cambodia and strengthen operations in Myanmar, Vietnam and Malaysia.



Management Structure

1. Management Structure

The Company’s management structure consists of

1) Board of Directors

2) The Audit Committee

3) The Executive Board

4) The Nomination and Remuneration Committee

5) The Risk Management Committee

6) The Management Board

1) Board of Directors

According to Article 13 of Articles of Association of the Company specifies that the Company must have a Board of Directors which consists of no less than five members. The Board of Directors shall elect one of the directors to be the Chairman, and may elect a Vice Chairman as they see fit and no less than half of them shall be residents in the Kingdom. For the President, the Nomination and Remuneration Committee shall select a nominated person from the Directors and propose this person to the Board of Directors for consideration and election.

At the present, the Board of Directors consists of 15 directors of which 12 directors arenon-managementdirectors,ordonotserveasconsultantswhoarenotentitledtoreceivemonthlyremuneration,andthreedirectorsaremembersofthemanagementand Executive Board and serve as consultants, entitling them to receive monthly remuneration. In 2010, there were five qualified independent directors, totaling one-third of the total members of Board of Directors. In compliance with Article 16 of the Notification of Capital Market Supervisory Board No. Tor Jor 28/2551 Re: Application for and Approval of Offer for sale of Newly Issued Shares. Additional amendment by the Notification of Capital Market Supervisory Board No. Tor Jor 4/2552. All directors have no criminal records in relation to financial fraud during the past year. A personal and professional biography of each individual director is set out in Attachment 1 of

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Form 56-1, which the Company provides for submission to the government sectors.

As of 31 December 2010, the 15 Board of Directors was comprised of :

1. Mr. Charoen Sirivadhanabhakdi Chairman Chairman of the Executive Board

Chief Executive Officer

2. Khunying Wanna Sirivadhanabhakdi Vice Chairman

3. Mr. Chaiyut Pilun-owad Director Vice Chairman of Executive Board Nomination and Remuneration Committee Member

4. Mr. Thirasakdi Nathikanchanalab Director Vice Chairman of Executive Board Risk Management Committee Member

5. Mr. Prasert Maekwatana Director Vice Chairman of Executive Board Risk Management Committee Member

6. Mr. Aswin Techajareonvikul Director Executive Director Chairman of Risk Management Committee President

7. Mrs. Thapanee Techajareonvikul Director Executive Director Member and Secretary to Risk Management Committee Secretary to Nomination and Remuneration Committee Senior Executive Vice President

8. Mr. Sithichai Chaikriangkrai Director Executive Director Risk Management Committee Member

9. Mr. Thapana Sirivadhanabhakdi Director Executive Director

10. Mr. Panot Sirivadhanabhakdi Director Executive Director

11. Mr. Suvarn Valaisathien (1) Director Executive Director


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12. Mr. Prasit Kovilaikool (2) Director Independent Director

13. Mr. Staporn Kavitanon Director Chairman of Audit Committee / Independent Director Chairman of Nomination and Remuneration Committee

14. Mr. Weerawong Chittmittrapap Director Audit Committee Member / Independent Director

15. Mr. Suvit Maesincee Director Audit Committee Member / Independent Director Nomination and Remuneration Committee member

16. Ms. Potjanee Thanavaranit Director Independent Director

Mr. Chinnawat Thongpakdee Company Secretary

Remarks (1) Mr.SuvarnValaisatienretiredasamemberoftheBoardofDirectorseffectivefrom23February2010.

(2) Mr.PrasitKovilaikoolwasappointedtotheBoardofDirectors,replacingMr.SuvarnValaisatien,effectivefrom23February2010. The Board of Directors’ resolution on 2/2010 was made on 23 February 2010 as recommended by the Nomination and RemunerationCommittee.

Scope of Authority of the Board of Directors

Article 24 of Articles of Association of the Company specifies that the Board of Directors shall be responsible for the overall business operation of the company and performs their duties in conformity with the law, the Company’s objectives and the Articles of Association as well as the resolutions of shareholders’ meeting, and are also authorized to carry on any activities as proscribed in the Memorandum of Association or those related thereto.

Board of Directors (Fiduciary Duty) has the responsibility to govern and administer the corporate affairs for the best interests of the shareholders by closely observing the following :

(1) Duty of Care : cautiously and carefully perform duties.

(2) Duty of Loyalty : perform duties with faithfulness and honesty.

(3) Duty of Obedience : strictly comply with the laws, the objectives, the Articles of Association and the resolution of shareholders’ meetings.

(4) Duty of Disclosure : disclose accurate, complete and transparent information to the shareholders.

Duly Authorized Directors

Two directors jointly sign and affix with Company’s seal, excluding Mr. Staporn Kavitanon, Mr. Weerawong Chittmittrapap, Mr. Suvit Maesincee, Ms. Potjanee Thanavaranit and Mr. Prasit Kovilaikool.

308 PB

1. Mr.CharoenSirivadhanabhakdi Chairman 9/9

2. KhunyingWannaSirivadhanabhakdi ViceChairman 9/9

3. Mr.ChaiyutPilun-owad Director 9/9

4. Mr.ThirasakdiNathikanchanalab Director 8/9

5. Mr.PrasertMaekwatana Director 8/9

6. Mr.AswinTechajareonvikul Director 9/9

7. Mrs.ThapaneeTechajareonvikul Director 8/9

8. Mr.SithichaiChaikriangkrai Director 8/9

9. Mr.ThapanaSirivadhanabhakdi Director 6/9

10. Mr.PanotSirivadhanabhakdi Director 8/9

11. Mr.SuvarnValaisathien(1) Director 1/2

12. Mr.PrasitKovilaikool(2) Director 7/7

13. Mr.StapornKavitanon Director 3/9

14. Mr.WeerawongChittmittrapap Director 7/9

15. Mr.SuvitMaesincee Director 8/9

16. Ms.PotjaneeThanavaranit Director 9/9

Directors Position Numberofattendance

(times)

Remarks : (1) Mr. Suvarn Valaisatien retired as a member of the Board of Directors effective from 23 February 2010.

(2) Mr. Prasit Kovilaikool was appointed to the Board of Directors, replacing Mr. Suvarn Valaisatien, effective from 23 February 2010. The Board of Directors’ resolution on 2/2010 was made on 23 February 2010 as recommended by the Nomination and Remuneration Committee.

Performance of the Board

TheBoardmeetseveryquarteroftheyearafterthecompletionofeachquarterlyfinancialstatementsandadditionalmeetingswillbeheldasitdeemsnecessary.Agendaitemsareexplicitlydecidedaheadoftime,incorporatingoutstandingmattersfrompreviousmeetings.BJC’sSecretariatissuesmeetingnoticesalongwiththeagendasandsupportingdocumentsaheadofthemeetingdatetoallowenoughtimefordirectorstostudythem.Eachmeetingtakesaroundtwotofourhours.TheChairmanshallchairtheBoardmeetingandthereshallbewrittenrecordsoftheminutesofthemeetingissuedafterwardsandthoseminutesshallbekeptinfilesforanyfutureinvestigationthatmayberequired.

MeetingminuteswererecordedinwritingandapprovedminutesarestoredforexaminationbytheBoardandrelevantparties.

Atotalofninemeetingswereheldin2010.Theattendanceofeachdirectorisshownbelow:

Annual Report 2010 • Berli Jucker Public Company Limited

PB 309

Attendance of Training Courses Arranged by Thai Institute of Directors (IOD)

The Company encourages directors to participate in various training courses arranged by different organizations,particularlytheThaiInstituteofDirectors(IOD),initsattempttocontinuouslyenhancedirectors’skills.

1. Mr.CharoenSirivadhanabhakdi - - / - - - -

2. KhunyingWanna - - / - - - - Sirivadbhanabhakdi

3. Mr.ChaiyutPilun-Owad - - / - - - -

4. Mr.ThirasakdiNathikanchanalab / - / - - - -

5. Mr.PrasertMaekwatana / - / - - - -

6. Mr.AswinTechajareonvikul / - - - / - -

7. Mrs.ThapaneeTechajareonvikul / - / - - - /

8. Mr.SithichaiChaikriangkrai / / - - - - -

9. Mr.ThapanaSirivadhanabhakdi - - / - - - -

10. Mr.PanotSirivadhanabhakdi / / - - - - /

11. Mr.SuvarnValaisathien / - / - - - -

12. Mr.PrasitKovilaikool - - / - - - /

13. Mr.StapornKavitanon - - / - - - -

14. Mr.WeerawongChittmittrapap / - - - - - -

15. Mr.SuvitMaesincee - - / - - - -

16. Ms.PotjaneeThanavaranit / - - / / / -

TrainingCourses

Name Director DCP Director Audit Roleofthe Roleofthe Financefor

Certification Refresher Accreditation Committee Chairman CompensationNon-Finance

Program Course Program Program Program Committee Directors

(DCP) (DCP-Re) (DAP) (ACP) (RCP) (RCC) (FND)

2) TheAuditCommittee

TheCharteredof theAuditCommitteestatedthat theAuditCommitteeshallbecomprisedofChairmanof theAuditCommitteeandatleasttwomorememberswhichallmembersshallbeelectedtotheboardfromthemeetingofBoardofDirectorsorOrdinaryGeneralMeetingofShareholders,eachofwhomshallsatisfytheindependenceandfinancialliteracyrequirementsof thenotificationof theSecuritiesandExchangeCommission(the“SEC”)andthenotificationof theStockExchangeofThailand(“SET”).

Atpresent,theAuditCommitteecomprisesthreemembers,eachsubjecttoathree-yearterm.AlloftheAuditCommitteememberspossessrelevantqualificationsrequiredbytheNotificationofCapitalMarketSupervisoryBoardNo.TorJor28/2551Re:ApplicationforandApprovalofOfferforSaleofNewlyIssuedShares.

310 311310 311

(whichisamendedbytheNotificationofCapitalMarketSupervisoryBoardNo.TorJor4/2552Re:ApplicationforandApprovalofOfferforSaleofNewlyIssuedShares-Volume2)

TheAuditCommitteeshallprovideitsoversightresponsibilitieswithrespecttotheCompany’saccounting,auditingandfinancialreportingprocesses,thescopeandresponsibilitiesincludetoensurethattheauditisconductedinaneffectiveandefficientmanner,toassesstheriskofmaterialmisstatementsanddeterminesspecificauditproceduresaswellastoensuretheeffectivecommunicationamongtheBoardofDirectorsandSeniorVicePresident-GroupFinance&AccountingDivision,InternalAuditorsandAuditors.

Mr.StapornKavitanon,amemberoftheCompany’sAuditCommitteewhohasextensiveexperienceinperformingthedutyofauditingthefinancialstatements.

Asof31December2010,theAuditCommitteecomprisesthreemembersasfollow:

1. Mr.StapornKavitanon ChairmanoftheAuditCommittee (AuditCommitteeMemberwithsufficientknowledgeandexperienceto ensuretheaccuracyandcredibilityofthefinancialstatement)

2. Mr.WeerawongChittmittrapap AuditCommitteeMember

3. Mr.SuvitMaesincee AuditCommitteeMember

Mr.PrasitWacharachaiphonsiri SecretarytotheAuditCommittee

Scope and Responsibilities of the Audit Committee

TheAuditCommitteeshallperformitsdutiesasspecifiedbytheNotificationoftheStockExchangeofThailand(SET)ontheScopeandResponsibilityoftheAuditCommitteeB.E.2551(whichisamendedbytheSETontheQualificationsandScopeofAuthorityoftheAuditCommittee(thesecondAmendment)B.E.2552)andasspecifiedintheCompany’sAuditCommittee’scharterasfollows:

1) ReviewandensurethattheCompany’sfinancialstatementsareaccurateandsufficient

2) Reviewandensure that theCompanyhasappropriateandeffective internalcontroland internalauditsystems,ensureindependenceofinternalauditdepartment,approvetheappointment,transferorterminatetheheadofinternalauditdepartmentorotherunitsresponsibleforinternalaudit

3) EnsurethattheCompanycomplieswiththelawsrelatedtosecuritiesandexchangeaswellastheSETregulationsandlawsrelatedtotheCompany’sbusiness

4) Consider,selectandnominateanindependentpersontoactasanauditorofthecompanyandproposeremunerationpackagefortheperson,aswellasattendthemeetingwiththeauditorswithoutthepresenceofthemanagementatleastonceayear


310 311

5) ConsiderrelatedtransactionsthatmayhaveconflictofinteresttoensurethatthecompanycomplieswiththelawsandSETregulationsaswellasarereasonableandbestbenefittheCompany

6) PreparetheAuditCommittee’sReportanddiscloseintheCompany’sAnnualReport,whichmustbesignedbythechairmanoftheAuditCommitteeandsuchreportshallcoverthefollowinginformation:

(a) Opinionontheaccuracy,completenessandreliabilityofthefinancialstatements

(b) OpiniononthesufficiencyoftheCompany’sinternalcontrolsystem

(c) OpiniononthecompliancewiththeSecuritiesandExchangelawsortheSETregulationsandlawsrelatedto theCompany’sbusiness

(d) Opinionabouttheappropriatenessoftheauditor

(e) Opinionaboutitemsthatmayhaveconflictofinterest

(f) MeetingsandattendanceoftheAuditCommitteeMembers

(g) OpinionorobservationoftheAuditCommitteeperformingitsdutyaccordingtothecharter

(h) Reportotheritemsthatshareholdersandgeneralinvestorsshouldknow,andthereportshouldbewithinthe scopeofitsdutyandresponsibilityassignedbytheBoardofDirectors

7) OtherassignmentsassignedbytheBoardofDirectors

8) Performitsdutyasrequiredbylaws,theNotificationofSecuritiesandExchangeCommission(SEC)andtheNotificationoftheSET

Responsibilities of the Audit Committee

1. InthecasethattheAuditCommitteeisinformedbytheauditoraboutsuspiciousbehaviorsofdirectors,managersorpersonswhoareresponsibleforbusinessoperationofthecompany,whichmayviolateSecondParagraphofSection281/2,Section305,306,308,309,310,311,312or313oftheSecuritiesandExchangeActB.E.2535,itistoinvestigatethecaseandsubmitapreliminaryreporttotheSECandtheauditorwithin30daysofthedateitisinformed.

2. Uponfindingorhavingdoubtaboutthefollowingactionsortransactions,whichmaysignificantlyaffectthefinancialpositionandperformanceofthecompany,theAuditCommitteeistoreportsucheventstotheBoardofDirectorsinordertofindremedywithinaperioddeemedappropriatebytheAuditCommittee.

(1) Transactionswhichmaycauseconflictofinterest

(2) Fraudsorirregulareventsormaterialflawstotheinternalcontrolsystem

(3) Violationof lawpertainingtoSEC,theregulationsofSET,orotherlawsrelatingtobusinessoperationofthe company

312 313312 313

ShouldtheBoardofDirectorsormanagementfailtoamendtheissueswithinatimelineasspecifiedbytheAuditCommittee;amemberoftheAuditCommitteemayreporttheissuetoSECorSET.

Performance of the Audit Committee

TheCharterofAuditCommitteespecifiedthattheAuditCommitteeMeetingshouldbeheldatleastfourtimesperannumandtheauditormeetingshouldbeheldwithoutthemanagementatleastonceayear.

TheBoardmetfivetimesin2010forconsiderationofordinarymattersandheldanextraordinarymeetingwithauditors,withoutmanagementattendance.Theattendanceofeachmemberisshownbelow:

1. Mr.StapornKavitanon DirectorandChairman 4/6 oftheAuditCommittee

2. Mr.WeerawongChitmittrapap DirectorandAudit 6/6 CommitteeMember

3. Mr.SuvitMaesincee DirectorandAudit 6/6 CommitteeMember

CommitteeMembers Position Numberofattendance

(times)

3) TheExecutiveBoard

TheCharteroftheExecutiveBoardstatedthattheExecutiveBoardshallconsistofChairmanandatleasttwomorememberswhichallmembersshallbeelectedtotheboardfromthemeetingofthemanagementboard.

AtthepresenttheExecutiveBoardconsistof10memberseachofwhompossessthenecessaryqualificationsasstatedintherequirementsofthenotificationoftheSecuritiesandExchangeCommission(the“SEC”)andallofthemhasnotbeenservedastheIndependentDirectorofthecompany.

TheExecutiveBoardtranslatesthepolicyformulatedbytheBoardofDirectorsintocorporateplansthatwillbeimplemented,monitorsandensuresthattheoperatingresultsareinlinewiththepolicy,solvingoperationalproblems,andreporttotheBoardofDirectorstheactivitiesandactionsperformedbytheExecutiveBoard.

Asof31December2010,theExecutiveBoardcomprises10membersasfollows:

1. Mr.CharoenSirivadhanabhakdi ChairmanofExecutiveBoard

2. Mr.ChaiyutPilun-owad ViceChairmanofExecutiveBoard

3. Mr.ThirasakdiNathikanchanalab ViceChairmanofExecutiveBoard

4. Mr.PrasertMaekwatana ViceChairmanofExecutiveBoard


312 313

5. Mr.AswinTechajareonvikul ExecutiveDirector

6. Mrs.ThapaneeTechajareonvikul ExecutiveDirector

7. Mr.SithichaiChaikriangkrai ExecutiveDirector

8. Mr.SuvarnValaisathien ExecutiveDirector

9. Mr.ThapanaSirivadhanabhakdi ExecutiveDirector

10. Mr.PanotSirivadhanabhakdi ExecutiveDirector

Mrs.KamonwanSivaraksa SecretarytotheExecutiveBoard

Scope of Responsibilities of the Executive Board

TheBoardofDirectors’MeetingNo.9/2010heldon11November2010madetheresolutiontoamendtheCharteroftheManagementCommitteeinordertocomplywiththeGoodCorporateGovernanceprinciple.Theamendmentbecameeffectiveasof11November2010.TheauthorityandthescopeofresponsibilitiesoftheExecutiveBoardareasfollows:

1. Prepareandproposethebusinesspolicy,goals,operatingplans,businessstrategyandbudgetforapprovalbytheBoardofDirectors

2. Formulatebusinessplan,budgetandmanagementauthoritiesforapprovalbytheBoardofDirectors

3. ControlanddirecttheCompany’sactivitiesaccordingtothebusinesspolicy,goals,operationalplans,businessstrategiesandbudgetasapprovedbytheBoardofDirectors

4. Approvespendingon investmentoroperations,borrowingsandcreditapplication fromfinancial institutes, loanextensionandbeingguarantorfornormalbusinesspracticestransactionoftheCompany’sregulartransactionandoperatingbenefitaccordingtotheCompany’sobjectivesandwithinthebudgetlimitspecifiedbytheBoardofDirectors

5. Set corporateorganizational structureandadministrationauthority that coversdetails about recruitment, hiring,transfer,trainingandterminationofemployeesinthemanagementteamortopexecutives,andsigninhiringcontractasspecifiedbytheBoardofDirectors

6. SuperviseandapprovetheCompany’sbusinessoperations,appointorassignoneormanypersonstoactonbehalfoftheExecutiveBoardasdeemedappropriate.TheExecutiveBoardcancancel,changeoramendtheauthorities

7. PerformotherdutiesasassignedbytheCompany’sBoardofDirectors

314 315314 315

Performance of the Executive Board

TheExecutiveBoardmetfourtimesin2010,theattendanceofeachmemberisoutlinebelow:

1. Mr.CharoenSirivadhanabhakdi Chairman 4/4

2. Mr.ChaiyutPilun-owad ViceChairman 4/4

3. Mr.ThirasakdiNathikanchanalab ViceChairman 4/4

4. Mr.PrasertMaekwatana ViceChairman 4/4

5. Mr.AswinTechajareonvikul Director 4/4

6. Mrs.ThapaneeTechajareonvikul Director 4/4

7. Mr.SithichaiChaikriangkrai Director 3/4

8. Mr.SuvarnValaisathien Director 4/4

9. Mr.ThapanaSirivadhanabhakdi Director 3/4

10. Mr.PanotSirivadhanabhakdi Director 4/4

Member Position NumberofAttendance

(times)

4) NominationandRemunerationCommittee

AccordingtothecharterofNominationandRemunerationCommittee,thecommitteeshallcompriseachairmanandatleasttwomembers.AllmembersareappointedbytheBoardofDirectorsandshallnotholdthepositionoftheChairmanoftheCompany.

Asof31December2010,theNominationandRemunerationCommitteehasthreemembersasfollows:

1. Mr.StapornKavitanon ChairmanofNominationandRemunerationCommittee

2. Mr.ChaiyutPilun-owad NominationandRemunerationCommitteeMember

3. Mr.SuvitMaesincee NominationandRemunerationCommitteeMember

Mrs.ThapaneeTachachareonvikulSecretarytoNominationandRemunerationCommittee

Authority and Scope of Responsibilities of the Nomination and Remuneration Committee

TheBoardofDirectors’meetingNo.7/2008heldon13November2008resolvedtoamendthecharteroftheNominationandRemunerationCommitteetobettercomplywiththeCorporateGovernanceprinciple.Theamendmentbecameeffectivefrom1March2009.ThescopeofresponsibilitiesoftheNominationandRemunerationCommitteeareasfollows:


314 315

1. PerformalltasksspecifiedbylawsandnotificationsoftheSECandtheSETastheresponsibilitiesorthetasksthattheNominationandRemunerationCommitteeshallperform

2. ConsiderandnominateapersonwiththemostappropriatequalificationstobeelectedasdirectorattheAnnualGeneralMeetingofshareholders

3. ConsiderandnominateapersonwiththemostappropriatequalificationstotheBoardofDirectorsforappointmentasthePresidentandExecutivesVicePresidentlevelup

4. ConsiderandproposetotheBoardofDirectorsthecriteriafortheremunerationpackagefordirectors,PresidentandExecutivesVicePresidentlevelup;andalsoregularlyreviewremunerationpolicytoensurethattheCompany’sremunerationcriteriaarealwaysupdatedandappropriate

5. Considerandproposeto theBoardofDirectors theannualremunerationandbonusfordirectors,PresidentandExecutivesVicePresidentlevelupbeforeproposingthesetotheshareholders’meetingforapproval

6. ConsiderandproposetotheBoardofDirectorsthecriteriaofanannualremunerationandbonusforemployees

7. PrepareaReportoftheNominationandRemunerationCommitteeforsubmissiontotheBoardofDirectors’meetingwhenrequestedorasdeemedappropriate

8. ConsiderconditionsincasetheCompanyplanstoofferEmployeeStockOptionPlan(ESOP)andproposetotheBoardofDirectors’meetingand/orshareholders’meetingforapproval

9. PerformothertasksassignedbytheBoardofDirectors

Performance of the Nomination and Remuneration Committee

The Nomination and Remuneration Committee met four times in 2010, the attendance of each member is outlinebelow:

1. Mr.StapornKavitanon Chairman 4/4

2. Mr.ChaiyutPilun-Owad CommitteeMember 4/4

3. Mr.SuvitMaesincee CommitteeMember 4/4

CommitteeMembers Position Numberofattendance

(times)

316 317316 317

5) TheRiskManagementCommittee

TheRiskManagementCommitteecomprisesachairmanandatleasttwomembersappointedbytheBoardofDirectors’meeting.

ThePrimaryobjectivesoftheRiskManagementCommitteeincludesassessingandprovidingoversighttothemanagementrelatingtotheidentificationandevaluationofmajorriskmanagementstrategiesandcontrolactivitiesoftheCompany.

TheRiskManagementCommitteeisalsoresponsibleforsupportingoverseeingtheexternalrisksinherentinthebusinessoftheCompanyandthecontrolprocesseswithrespecttosuchrisks.

Asof31December2010,theRiskManagementCommitteecomprises10membersasfollows:

1. Mr.AswinTechajareonvikul ChairmanoftheRiskManagementCommittee

2. Mr.ThirasakdiNathikanchanalab RiskManagementCommitteeMember

3. Mr.PrasertMaekwatana RiskManagementCommitteeMember

4. Mr.SithichaiChaikriangkrai RiskManagementCommitteeMember

5. Mrs.ThapaneeTechajareonvikul MemberandSecretarytoRiskManagementCommittee

6. Mr.PeterEmilRomhild RiskManagementCommitteeMember

7. Mr.SompornBhumiwat* RiskManagementCommitteeMember

8. Mr.PattaphongIamsuro RiskManagementCommitteeMember

9. Mr.TeraponKietsuranon RiskManagementCommitteeMember

10. Mr.TeeraWerathamsathit* RiskManagementCommitteeMember

Remarks : * Mr. Somporn Bhumiwat and Mr. Teera Verathamsathit were additional appointed on 23 February 2010 by the Board of Director’

resolution No. 3/2010 held on 12 April 2010.

Authority and Scope of Responsibilities of the Risk Management Committee

TheBoardofDirectors’MeetingNo.7/2008heldon13November2008madearesolutiontoamendthecharteroftheRiskManagementCommitteetobettercomplywiththeGoodCorporateGovernanceprinciple.Theamendmentbecameeffective as of 1 March 2009. The authority and scope of responsibilities of the Risk Management Committee are asfollows:

1. PerformalltasksspecifiedintherelatedlawsandnotificationsoftheSECandtheSETastheresponsibilitiesortasksthatthecommitteeshallperform


316 317

2. Considerriskfactorsthathavesignificant impactatcorporateleveltoensuresecureoperationsinallareasandenhance theCompany’scompetitiveness throughaproductionprocess that is safeanddoesnothaveadverse impactonhealthandtheenvironment,investment,financeandcommerce,lawsandregulations.ThementionedfactorsshallbeconsideredinformulatingpoliciesthatenabletheCompanytoeffectivelyanalyze,assessandmonitortheriskmanagementprocessbeforepoliciesareproposedtotheBoardofDirectorsforapproval.

3. AuditandensurethattheCompanyhassufficient,appropriateandeffectiveriskmanagementpolicies,andpreparethereportoftheRiskManagementCommitteeforsubmissiontotheBoardofDirectorsasdeemedappropriateorrequested.

4. FormulateriskmanagementstrategiesthatareinlinewiththecorporateriskmanagementpoliciesapprovedbytheBoardofDirectors,andanalyze,assessandmonitortheimplementationoftheriskmanagementstrategiesandpolicies.

5. Superviseandsupportenterprisewideriskmanagementpracticetoachievecorporatesuccess,encouragethemanagementandemployeestohaveriskawarenessforeachrelatedfactorandconsidersuchfactorswhenmakingdecisionsonresourcesutilizationandotheroperations,andsupporttheRiskManagementSubcommitteeand/orRiskManager.

6. PerformothertasksasassignedbytheBoardofDirectors.

Performance of the Risk Management Committee

1. Mr.AswinTechajareonvikul Chairman 4/4

2. Mr.ThirasakdiNathikanchanalab CommitteeMember 4/4

3. Mr.PrasertMaekwatana CommitteeMember 4/4

4. Mr.SithichaiChaikriangkrai CommitteeMember 2/4

5. Mrs.ThapaneeTechajareonvikul CommitteeMember 0/4

6. Mr.PeterEmilRomhild CommitteeMember 4/4

7. Mr.SompornBhumiwat* CommitteeMember 2/3

8. Mr.PattaphongIamsuro CommitteeMember 4/4

9. Mr.TeraponKietsuranon CommitteeMember 4/4

10. Mr.TeeraWerathamsathit* CommitteeMember 2/3

CommitteeMember Position Numberofattendance

(times)

Remarks : * Mr. Somporn Bhumiwat and Mr. Teera Verathamsathit were additional appointed on 23 February 2010 by the Board of Directors’ resolution No. 3/2010.

318 319318 319

6) TheManagementBoard

Toensurethatalloperationsmoveinthesamedirectionandsupportthebusinesspolicy,target,businessplansandstrategiesassignedbytheBoardofDirectors, themanagementhasappointedthemanagementteam,comprisingatopexecutiveofeachbusinessunitandchairedbythePresident.

TheManagementisresponsibleformanagingalloperationsrelatedtoallbusinessgroupsanddirectingthebusinessaccordingtothebusinesspolicy,targets,plansandstrategies.TheManagementisalsoresponsiblefortheoverallperformance,expensecontrolandinvestmentasapprovedintheannualplanbytheBoardofDirectors,implementingpersonnelmanagementpolicy, solvingproblemsor conflicts thatmay affect the company andensuring effective communicationswith relatedpersons.

Asof31December2010,theManagementcomprisesseventopexecutivesasfollows:

1. Mr.AswinTechajareonvikul President

2. Mrs.ThapaneeTechajareonvikul SeniorExecutiveVicePresident

3. Mr.PeterEmilRomhild SeniorExecutiveVicePresident TechnicalSupplyChainandInternationalBusinessGroup

4. Mr.PattaphongIamsuro ExecutiveVicePresident ConsumerSupplyChain

5. Mr.TeraponKietsuranon ExecutiveVicePresident HealthcareSupplyChain

6. Mr.SompornBhumiwat ExecutiveVicePresident PackagingProductsGroup

7. Mr.TeeraWerathamsathit SeniorVicePresident GroupHumanResources

Separation of Responsibility between Board of Directors and Management Board

TherolesandresponsibilitiesoftheBoardofDirectorsandtheManagementBoardareclearlyseparated.ThisBoardofDirectorsisresponsibleforformulatingpoliciesandsupervisingpolicyimplementationbytheManagementBoardthroughvariouscommittees,namelytheAuditCommittee,theNominationandRemunerationCommittee,theExecutiveBoardandtheRiskManagementCommittee.TheManagementBoard,meanwhile,isresponsiblefordailyroutinemanagementactivities.TheChairmanoftheBoardandthePresidentarethereforedifferentpersons,butbotharedirectorsoftheCompany.TheNominationandRemunerationCommitteeisresponsiblefornominatingqualifiedpersonsfortheBoardofDirectors’approval.Inaddition,theBoardofDirectorsisresponsibleforthesuccessionplanfortopexecutivesoftheCompany,whichisreviewedonanannualbasis,withsupportandadviceoftheNominationandRemunerationCommittee.


318 319

TheChairmanoftheBoardisanon-executivedirectorandisnotinvolvedinroutineoperationsoftheCompanytoensurethatpolicysupervisionandroutinemanagementareclearlyseparated.


TheBoardofDirectorsofBerli JuckerPublicCompanyLimitedconsistedof 15memberswherein fiveof themareIndependentDirectorstotalingone-thirdofthetotalmembersoftheBoardofDirectors.TheIndependentDirectorscompriseof:

1. Mr.StapornKavitanon IndependentDirector

2. Mr.WeerawongChittmittrapap IndependentDirector

3. Mr.SuvitMaesincee IndependentDirector

4. Mr.PrasitKovilaikool IndependentDirector

5. Ms.PotjaneeThanavaranit IndependentDirector

ThecompanyhadsetoutthestandardqualificationsoftheIndependentDirectorstocomplywiththerequirementsofthenotificationoftheSecuritiesandExchangeCommitteeOfficeNo.TorJor28/2551Re:ApplicationforandApprovalofOfferforSaleofNewlyIssuedShares(whichisamendedbytheSecuritiesandExchangeCommitteeOfficeNo.TorJor4/2552Re:ApplicationforandApprovalofOfferforSaleofNewlyIssuedShares)whichspecifiedthatthe“IndependentDirectors”shallpossessthefollowingqualifications:

1. Theirshareholdingsmustnotexceed1%ofallsharesentitledtovotingrightsoftheCompany,i.e.theparentcompany,itssubsidiaries,itsassociatedcompany,orjuristicentitiesinpotentialconflictwiththeCompany.Inthisregard,thesharesownedbypersonsrelatedtothemshallbecountedastheirs.

2. Theymustnotnowbenoreverhavebeeninvolvedasexecutives,employees,hiredworkers,salariedconsultants,oranyonewithcontrollingauthorityoftheCompany,i.e.theparentcompany,itssubsidiaries,itsassociatedcompany,associatedsubsidiaries,orjuristicentitiesinpotentialconflictwiththeCompany,unlesssuchassociationendednolessthantwoyearsbefore.

3. Theyarenotrelatedbybloodorregisteredasbeingparents,spouses,siblings,orspousesofthechildrenoftheexecutives,majorshareholders,personswithcontrollingauthority,orpersonstobenominatedasexecutivesorpersonsofcontrollingauthorityintheCompanyoritssubsidiaries.

4. TheyhavenobusinessrelationswiththeCompany,i.e.theparentcompany,itssubsidiaries,itsassociatedcompany,orjuristicentitiesinpotentialconflictwiththeCompanyinwaysthatmightimpairtheirindependentjudgment.Theymustalsonotbenorhavebeenmajorshareholders,directorsotherthanindependentdirectors,orexecutivesofentitieshavingbusinessrelationswiththeCompany,i.e.theparentcompany,itssubsidiaries,itsassociatedcompany,orjuristicentitiesinpotentialconflictwiththeCompany,unlesssuchassociationendednolessthantwoyearsbefore.

320 321320 321

Theterm“businessrelationship”mentionedaboveincludesanynormalbusinesstransaction,rentalorleaseofimmovableproperty,transactionrelatingtoassetsorservicesorgrantorreceiptoffinancialassistancethroughreceivingorextendingloans, guarantee, providing assets as collateral, including any other similar actions, which result in the Company or itscounterpartybeingsubjecttoindebtednesspayabletotheotherpartyintheamountofthree3percentormoreofthenettangibleassetsoftheCompanyortwenty(20)millionbahtormore,whicheverislower.TheamountofsuchindebtednessshallbecalculatedaccordingtothecalculationmethodforthevalueofconnectedtransactionsundertheNotificationoftheCapitalMarketSupervisingCommitteeRe:RulesonConnectedTransactionsmutatismutandis.Thecombinationofsuchindebtednessshallincludeindebtednessoccurringduringthecourseofone1yearpriortothedateonwhichthebusinessrelationshipwiththepersoncommences.

5. TheyarenotandhavenotbeenanauditoroftheCompanyortheCompany’sparentcompany,subsidiary,associatedcompany,ormajorshareholder,orofanyofthepersonhavingpowertocontroltheCompany,andnotbeandhavenotbeenasubstantialshareholderof,apersonhavingpowertocontrolover,orapartnerofanyauditingfirmorofficeinwhichtheauditoroftheCompany,ortheCompany’sparentcompany,subsidiary,ormajorshareholder,orthepersonhavingpowertocontroltheCompanyisworking,unlesssuchanindependentdirectorhasnotbeenapersonreferredtoaboveforatleasttwoyears.

6. Theyarenotandhavenotbeenaprofessionaladvisor,includinglegalorfinancialadvisorwhoobtainsfeemorethantwomillionbahtayearfromtheCompanyortheCompany’sparentcompany,subsidiary,associatedcompany,ormajorshareholder,orfromthepersonhavingpowertocontroltheCompany,andnotbeandhavenotbeenasubstantialshareholderof,apersonhavingpowertocontrolover,orapartnerofanyofsuchprofessionalserviceproviderfirmoroffice,unlesssuchanindependentdirectorhasnotbeenapersonreferredtoaboveforatleasttwoyears.

7. TheyarenotdirectorsappointedasrepresentativesofdirectorsofcompaniesthataremajorshareholdersorofshareholdersrelatedtothemajorshareholdersoftheCompany.

8. Notundertakingabusinesswithsimilarnatureorsignificantcompetitionwiththebusinessofthepersonapplyingforpermissionorasubsidiarycompanies,ornotbeingamajorpartnerofapartnership,oradirectorwithinvolvementinmanagement,ahiredworker,anemployee,anadvisorwithregularpayroll,orowningsharesmorethan1%ofallshareswithvotingrightofothercompanieswithsimilarbusinessundertakingorsignificantcompetitionwiththebusinessofthepersonapplyingforpermissionorsubsidiarycompanies.

9. Theyhavenootherattributesthatobstructthemfromformingindependentopinions.

Afterhavingbeenappointedasanindependentdirectors,withattributesasintheFirsttoNinthParagraphs,anindependentdirectormaybeassignedbytheBoardofDirectorstotakepartinthecollectivedecisionmakingprocessofthecompany,principalcompany,subsidiarycompanies,affiliatedcompanies,subsidiarycompanyinthesamelink,majorshareowner,orpersonholdingcontrollingpowerofthecompany.

InthecasewherethepersonappointedbytheapplicantasindependentdirectorshaveorusedtohaveabusinessrelationshiporprovideprofessionalservicesexceedingthevaluespecifiedunderClause4orClause6ofthefirstparagraph,


320 321

theapplicantshallbegrantedanexemptionfromsuchprohibitiononlyiftheapplicanthasprovidedtheopinionofthecompany’sboardofdirectorsindicatingthat,bytakingintoaccounttheprovisioninSection89/7,theappointmentofsuchpersondoesnotaffectperformingofdutyandexpressingofindependentopinions.Thefollowinginformationshallbedisclosedinthenoticecallingtheshareholdersmeetingundertheagendafortheappointmentofindependentdirectors:

(a) Thebusinessrelationshiporprofessionalservicewhichmakesuchperson’squalificationsnotincompliance withtheprescribedrules.

(b) Thereasonandnecessityformaintainingorappointingsuchpersonasindependentdirector.

(c) Theopinionoftheapplicant’sboardofdirectorsforproposingtheappointmentofsuchpersonasindependent director.

ForthepurposeofClause5andClause6ofthefirstparagraph,theterm“partner”shallmeanapersonassignedbyanauditfirmoraproviderofprofessionalservicetosignontheauditreportortheprofessionalservicereport(asthecasemaybe)onbehalfofsuchjuristicperson.

Professional Activities of an Independent Director

Afterconsideringthequalificationsoftheexistingindependentdirectors,wefoundthatMr.WeerawongChittmittrapapwhowasengagedasaprofessionaladvisortotheCompanyintheyear2010andobtainedoverTwomillionbahtayearinfees,maynotbeincompliancewiththerequirementsofthenotificationoftheSecuritiesandExchangeCommitteeOfficeNo.TorJor28/2551Re:ApplicationforandApprovalofOfferforSaleofNewlyIssuedShares(whichisamendedbytheheSecuritiesandExchangeCommitteeOfficeNo.TorJor4/2552Re:ApplicationforandApprovalofOfferforSaleofNewlyIssuedShares),becauseofsuchengagementand feepayments.However, theCompanybelieves thatMr.WeerawongChittmittrapapisasuitablechoicebecauseofhisextensiveexperienceandknowledge.Heiswell-knownandrespectedbyhispeers,counterpartsandclientsasahighlyqualifiedlegaladvisor,knowlegeableinseveralareasofthelawandhashadamajorroleinassistingtheDirectorsinimplementingbestcorporategovernancepracticesandtransparencystandardsforthecompany’soperationsinThailand.Additionally,MrWeerawongChittmittrapaphasbeencarryingouthisprofessionaldutieswithadherencetotheprinciplesofdisclosure,careandloyaltyandhasn’tbeeninvolvedinanybusinessesthatmightcauseanyconflictstotheCompany.ThemeetingoftheBoardofDirectorsNo.3/2553hasconsideredandcompliedwithall therequirementsandthemajorityvotedtoapprovethequalificationsandlimitationsofMrWeerawongChittmittrapap,confidentthattheywouldnotcauseanyharmoreffecthisroleasanIndependentDirector.TheCompanyhasalsodisclosedsuchinformationintheNotificationoftheAnnualGeneralMeetingfor2010intheSectionof“ElectionoftheDirectors”andassuchMr.WeerawongChittmittrapaphasbeenelectedtocontinuetoserveastheCompany’sIndependentDirector.

The Company Secretary

Themeetingof theBoardofDirectorsNo.3/2553appointedMr.ChinnawatThongpakkdeewhowaselectedas theCompanySecretarytoperformtheneccessarydutiestocomplywiththeSETAnnouncementof1992(whichisthefourthamendment)aswellastoperformanyotherdutiesasrequiredbytheNotificationofCapitalMarketSupervisoryBoard.

P.321

4)

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2. Nomination of Directors and Executives

2.1 Criteria,SelectionandAppointmentofDirector

1) Termofoffice

AccordingtoArticle17ofArticlesofAssociationoftheCompany,atleastone-thirdofthedirectorsshallresignattheAnnualGeneralMeetingofShareholders.Lotterydrawingshallbeheldtodeterminethedirectorstovacatetheofficeinthefirstandsecondyearaftercompanyregistration.Inthefollowingyears,thedirectorswhostaythelongestintheofficeshallresignbutmaybereappointedtotheBoardofDirectorsforanotherterm.

2) Nomination of a Director by the Shareholders

In2010,theCompanyallowedoneoragroupofshareholders,withcombinedshareholdingproportionofnotlessthan5%ofthetotalvotingshares,tonominateadirectorreplacingdirectorswhoretirebyrotation.Thenominationwasconductedpriortotheannualgeneralshareholders’meetingdate.DetailsaboutdirectornominationarepublicizedontheCompany’swebsiteatwww.bjc.co.thforshareholderstostudy.Fortheyear2010,theCompanyallowedthenominationofdirectorsfromtheshareholdersstartingfrom11November2010to31December2010.

3) Nomination of a Director replacing the retired director by rotation

TheNominationandRemunerationCommitteeshallnominatetheappropriatecandidatesfortheBoardofDirectors’considerationbeforeseekingapprovalfromshareholders.Allshareholdershavetheauthorityandequalrighttovoteattheshareholders’meetingfortheappointmentofadirector.

4) Appointment of Director replacing vacancies position from other reasons rather than by rotation

TheBoardofDirectorsshallnominateaqualifiedpersonwhoisnotfallingintoanycategoriesthatprohibitedbylaw(Incasethevacancyoccurswhenthetermislessthantwomonths,theBoardofDirectorsshallnominateapersontotheshareholders’meetingforappointment).Theappointeddirectorshallbeinofficeonlyuntiltheendofthetermoftheoneheorshereplaces.

Inthiscase,theBoardofDirectors’resolutiononvacancyreplacementshallconsistofnolessthanthreequartersofthetotalremainingvotes.

5) QualificationsoftheNominees

Accordingtothelaw,adirectorshallbeapersonwhomeetsthefollowingqualifications:

(1) Becomesuijuris.

(2) Notbeingbankrupt,incapableorquasi-incompetent.

(3) Neverconvictedcrimerelatedtoassetsinafraudulentaction.

(4) Neverbeenterminatedfromagovernmentorprivateorganizationduetomalpractice.


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Inaddition,adirectorcannotfallintoanyofthefollowingdefinitions:

(1) Becomeabsolutereceivership,bankrupt,incapableorquasi-incompetent.

(2) ProhibitedbytheSETfromactingasdirector,managementorcontrollingpersonoflistedcompanyorhaving acteduntrustworthyaccordingtotheregulationsstipulatedintheNotificationoftheOfficeoftheSecurities andExchangeCommission.

(3) Chargedorconvictedofacrimebyanyauthorizedagencyforunfairpracticesinthesaleofsecuritiesand/ orforwardcontract,alsoembezzlementorfraudarosefrommanagementexecutions.

(4) Restricted from holding a management position by an authorized foreign or international agency or organization.

(5) Convictedofacrimeaccordingto(3)oranequivalentillegalactionaccordingto(3).

(6) ReasonableproofofhavingactedorhadactedimproperlyagainsttothecodesofDutyofCareorDuty ofLoyaltytoachievethebestbenefitforthatentityanditsshareholdersasawholeasdirector,management, orcontrollingperson,orhavingsupportedorhashadaninterestinorsupportedsuchimproperbehavior ofotherpartiesinsimilaractions.

(7) Reasonablybelievedtohaveactedorhavingactedinanuntrustworthymannerorcommittedfraud,orhaving supportedorhadsupportedsuchimproperbehaviorofotherpartiesinsimilaractions.

(8) Reasonablybelievedtoactorhasactedunfairlyorhastakenunfairadvantageofashareholder,orhasor hashadsupportedsuchimproperbehaviorofotherinsimilaractions.

(9) Reasonablybelievedtohaveconcealedorhaveconcealedactualfinancialstandingoractualperformanceof a listedcompanyoracompany thathasmadeapublicshareoffering,or intentionallypresented false information,orconcealedfactsinadocumentthatmustbedisclosedtothepublicorsubmittedtotheOffice ofSecuritiesandExchangeCommission(SEC),whetherintheirownnamesoronbehalfofajuristicentity orabusinessoverwhichtheycontrolthemanagementof,orhavingsupportedanotherindividualinsuch actions.

(10)Reasonablybelievedtohaveneglectedorhaveneglectedsupervisorydutiesofexecutivesorcontrolling personsofa listedcompanyoracompany thathasmadeapublicshareoffering, inwhichheor she servesorhasservedasadirector,amanagement teammember,oracontrollingperson including its subsidiaries, to prevent a company from violating the law or acting illegally or contrary to company objectives,companybylawandshareholders’meetingresolutions,whichcouldcausedistrustonthecapital marketasawhole,orcouldharmacompany’sreputation,status,orbusinessoperation.

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DeliberationofthesequalificationsmustbeabidebytheregulationsstipulatedintheNotificationoftheOfficeoftheSecuritiesandExchangeCommissionNo.KorChor.8/2553Re:DeterminationofUntrustworthyCharacteristicsofCompanyDirectorsandExecutivesandtheNotificationofCapitalMarketSupervisoryBoardno.TorJor19/2553Re:RuleforListingofPerson’sNameonDatabaseofDirectorsandExecutivesofSecuritiesIssuingCompaniesaswellastheNotificationoftheOfficeoftheSecuritiesandExchangeCommissionNo.SorChor23/2553re:FormandProcedureforFilingorChangeofInformationofIssuingCompany’sDirectorsandExecutives.

6) Principles on the Appointment of Directors by the Annual General Meeting of Shareholders

Themethodforselectionofshareholdersareasfollows

1) Eachshareholderentitlestoonevoteperoneshare.

2) Eachshareholdermustcastalltheirvotesaccordingto(1)foroneormorecandidatesastheyselectedbut cannotdividetheirvotingrightforanynumberofcandidates.

3) Finalresultswilldeterminedwhenthenumberofvotesiscountedforeachnominatedcandidatewiththe winningcandidatesthosepersonswiththehighestnumberofvotesindescendingorder,untilallvacant positionsarefilled.

Inthecasemorethanonecandidatehasreceivedanequalnumberofvotes,andtherearenotenoughvacantpositionsforall,thechairmanofthemeetingwillcallforanothervoteamongthesecandidatestodeterminethewinner(s)ofthefinalvacantposition(s).

2.2 MethodforTopExecutivesSelection

TheNominationandRemunerationCommitteewillsubmitrecommendationsbasedonanevaluationofperformance,abilityandleadershippotentialtotheExecutiveBoardand/orBoardofDirectorsfortheirconsideration.

3. Remuneration of Directors and Top Executives

3.1 MonetaryRemunerationasof31December2011

Remuneration of Directors

Remunerationofdirectorsmust,andcanonly,beapprovedbytheAnnualGeneralMeetingofShareholders.Fortheyear2010,theAnnualGeneralMeetingofShareholdersheldon29April2010approvedtheremunerationofthedirectors,attheamountofnotexceedingBaht25Millionperannumwhichcomprisesamonthlyremuneration,attheamountofnotexceedingBaht15Millionperannum,andabonus,nottoexceedBaht10Millionperannum.

ThedecisionisatthediscretionoftheNominationandRemunerationCommitteeandChairmanoftheBoardinaccordancetostipulationsandratesofremunerationofeachdirectoraccordingtotheirpositionandresponsibilities.


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Mr.CharoenSirivadhanabhakdiandKhunyingWannaSirivadhanabhakdiexpressedtheirintentionsnottoacceptanyremunerationbeginningon1April2008.Threeotherdirectorswhoreceivedamonthlysalaryormonthlyconsultancyfeearenotentitledtoreceiveremunerationasdirectors.TheseincludedMr.ThirasakdiNathikanchanalap,Mr.AswinTechajareonvikulandMrs.ThapaneeTechajareonvikul.

In2010,thedirectorsreceivedmonetaryremuneration,includingbonusestotalingBaht15,550,000.00Themonetaryremunerationpaidtoeachdirectorisshownbelow:

Remarks : (1) Mr. Charoen Sirivadhanabhakdi and Khunying Wanna Sirivadhanabhakdi expressed their intentions not to receive remuneration starting from 1 April 2008 onwards.

(2) Three directors: Mr. Thirasakdi Nathikanchanalap, Mr. Aswin Techajareonvikul and Mrs. Thapanee Techajareonvikul, who are eligible to receive a salary have no right to receive remuneration as a director. (3) Mr. Suvarn Valaisathien resigned from his directorship with effectiveness from 23 February 2010 onwards.

(4) Mr. Pasit Kovilaikool was appointed as the director to replace Mr. Suvarn Valaisathien with effective from 23 February 2010. (Appointment was made by the resolution of the Board of Directors Meeting No. 2/2010 held on 23 February 2010 with the nomination by the Nomination and Remuneration Committee), received the remuneration from 23 February to 31 December 2010.

1. Mr.CharoenSirivadhanabhakdi(1) - - - -

2. KhunyingWannaSirivadhanabhakdi(1) - - - -

3. Mr.ChaiyutPilunOwad 900,000.00 - 350,000.00 1,250,000.00

4. Mr.ThirasakdiNathikanchalab(2) - - - -

5. Mr.PrasertMaekwatana 900,000.00 - 300,000.00 1,200,000.00

6. Mr.AswinTechajareonvikul(2) - - - -

7. Mrs.ThapaneeTechajareonvikul(2) - - - -

8. Mr.SithichaiChaikriangkrai 900,000.00 - 3,000,000.00 3,900,000.00

9. Mr.ThapanaSirivadhanabhakdi 900,000.00 - - 900,000.00

10. Mr.PanotSirivadhanabhakdi 900,000.00 - - 900,000.00

11. Mr.SuvarnValaisathien(3) 136,607.00 - - 136,607.00

12. Mr.PrasitKovilaikool(4) 763,393.00 - 220,000.00 983,393.00

13. Mr.StapornKavitanon 900,000.00 540,000.00 1,200,000.00 2,640,000.00

14. Mr.WeerawongChittmittrapap 900,000.00 180,000.00 - 1,080,000.00

15. Mr.SuvitMaesincee 900,000.00 180,000.00 360,000.00 1,440,000.00

16. Ms.PotjaneeThanavaranit 900,000.00 - 220,000.00 1,120,000.00

Total 9,000,000.00 900,000.00 5,650,000.00 15,550,000.00

Remunerationpaidto

BoardsMembers DirectorsBoard ExecutiveBoard Bonusfor2010 Total

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2010 8 58.44

2009 8 62.58

Year Total(persons) TotalSalaryandProvidentFund(MillionBaht)

Therearefourindependentdirectorswhoarealsoindependentdirectorsoftheparentcompany’ssubsidiariesorsubsidiariesatthesamelevelandareentitledtoreceiveremunerationasindependentdirectorsofTCCGroup.TheyareMr.StapornKavitanon,Mr.PrasitKovilaikool,Ms.PotjaneeThanavaranitandMr.WeerawongChittmittrapap.TheyreceivedremunerationasindependentdirectorsofTCCGroupfor2010asfollows:

Mr.StapornKavitanon

1. BerliJuckerPublicCompanyLimited Remuneration Baht 2,640,000

2. SiamFoodsPublicCompanyLimited Remuneration Baht 720,000

3. ThaiBeveragePublicCompanyLimited Remuneration Baht 3,600,000

Mr.PrasitKovilaikool

1. BerliJuckerPublicCompanyLimited Remuneration Baht 983,393

2. OishiGroupPublicCompanyLimited Remuneration Baht 270,000


Ms.PotjaneeThanavaranit


2. OishiGroupPublicCompanyLimited Remuneration Baht 2,501,500

Mr. WeerawongChittmittrapap



Monetary Remuneration of Directors and Top Executives


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4. 2010 Corporate Governance

In2010,thecompanycontinuedtomaintainitskeymechanism,whichalsoreflecteditscommitmenttogoodcorporategovernanceprinciples,basedonthe2006guidelinesofgoodcorporategovernanceoflistedcompaniesbySET,lawsandregulationsissuedbySEC,theCapitalMarketSupervisoryBoardaswellasotherrelevantagencies.TheCompanyhasstrictlymaintainedthegoodcorporategovernancebysettingupthecorporatevalueforthepurposeofsustainabledevelopmentandjointsuccessofourpeoplewhichareB-BeyondSatisfaction,J–JointSuccessandC–CaringforCommunity.TheCompanyhascontinuouslycarryingoutthefollowingthebelowmechanismduringthepastyear:

1) RightsofShareholders

TheCompanyensuresthatallshareholdersareentitledtoallbasicrightsasshareholdersandcompanyownersunderacceptedandtrustedstandardsunderthelaws,avoidsactionsthatrestrictrightsoropportunitiesofshareholdersinacquisitionmatters(takeovers),andalsopreventsdirectorsfromabusingtheirlawfulduties.Therefore,thebasicrightsofshareholdersareasfollows:

1. Basic Rights to freely buy, sell, transfer shares they hold

ThesecuritiesoftheCompanyarebeingsecuredunderthetrustworthymethodsbytheThailandSecuritiesDepository(TSD)Co.,Ltd.,asthecompany’sregistrar.

2. Right to receive dividends from the Company

ThedividendspaymentpolicyoftheCompanyiscompliedwiththewrittenCompany’sdividendpaymentpolicybasedoncompanyperformancethatisequalforeachshareholder.Theshareholderswillbenotifiedoftheirrespectiveentitlementsoneachpaymentofdividend.Eachshareholderhastherighttoreceiveandequaldividendpayment.

3. Right to be informed appropriately and regularly

WheneverthereisanysignificantmatterwhichitsoccurrencemayaffecttotheCompanyanditsbusiness,orhaveasignificanteffectonashareholder’sinvestmentdecision,theinformationwillbedisclosedviaelectronicchannelprovidedbytheSETandpostedontheCompany’swebsiteundertheSETregulationsregardingthedisclosureofinformation.

2010 8 2.59

2009 8 2.73

Year Total(persons) ProvidentFund(MillionBaht)

3.2 Non-MonetaryRemuneration

Provident Funds

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Furthermore,theCompanyhasdeterminedadisclosurepolicythatrequiresthePresidentorapersonauthorizedbythePresidenttoberesponsibleforthedisclosureof informationconcerningtheCompanyandanyof itssubsidiaries.Thisinformationwillfirstbescrutinizedbyatopexecutiveorarelevantpartyconcernedonsuchinformation,suchassale,marketingactivities.Thismustfirstbeconsideredby theExecutiveVicePresident in therelatedbusiness.However, theinformationdisclosureonfinancialstatements,revenuefinancialconditionmustbeinaccordancewiththeinformationreviewedorconsideredbytheAuditCommitteedependingonthecircumstances.

4. Right to request the Company to call for Extraordinary Shareholders’ Meeting

InaccordancewithClause32Section2oftheCompany’sArticleofAssociation.Anyshareholderholdinginaggregateone-fifthofallissuedsharesoratleast25shareholdersholdinginaggregateatleastone-tenthofallissuedsharescansubmitawrittenrequesttotheBoardofDirectorstocallforanExtraordinaryShareholders’Meeting,stipulatingthereasonforcallingsuchameeting.TheBoardofDirectorsmustthencallforanExtraordinaryShareholders’Meetingwithinonemonthofthedatetherequestinwritingwasreceived.

5. Right to vote at a Shareholders Meeting

AttheShareholders’Meeting,shareholdersarefreetoexpresstheiropinionsandsuggestionsandhavetherighttocastasmanyvotesasthenumberofsharestheyholdinaccordancetoClause36oftheCompany’sArticleofAssociation,“Atashareholders’meeting,eachshareholderisentitledtoonevoteforeachofthesharetheyhold.Ashareholderwhohasavestedinterestinaresolutioncannotvoteonsuchresolution.Normally,aresolutionofanymeetingofshareholdersshallbepassedbyamajorityvoteofallshareholdersattendingthemeetingandhavingtherighttovote.Exceptinthefollowingimportantcases,aresolutionofnotlessthanthree-forthofthevoteofshareholderattendingthemeetingandhavingtherighttovoteisrequired;

• AmendmentsofArticleofAssociationorMemorandumoftheCompany

• Sellingortransferringthecompany’sbusiness,whetherinwholeorinsubstantialpart,toanotherperson.

• Purchasingoracceptingthetransferofbusinessesofanotherpublicorprivatecompany.

• Amendingorterminatinganyagreementconcerninganyleaseofbusinesswhetherinwholeorinsubstantialpartofthecompany’sbusiness,assigninganypersontomanagethecompany’sbusiness,ormergingwithanotherpersonforthepurposeofprofitandlosssharing.

• IncreasingtheCompany’sregisteredcapitalbyissuingnewshares.

• Decreasingtheregisteredcapitalbyreducingavalueofashareorreducingofanumberofashareorwritingoffregisteredsharenotyetsubscribed.

• Borrowingmoneybyissuingandofferingdebentures.

• MergersandAcquisitionorliquidationofthecompany.


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Inaddition,shareholders’areentitledtoelectdirectorsduringtheshareholdersmeetingwhereshareholderscanvoteforqualifiedcandidatesaswellasvoteforthedismissalofadirectorwhohasbeendisqualifiedthrougharesolutionattheshareholdersmeetingbyathree-quartersmajorityofallvotesbyshareholdersinattendancewiththerighttovotewithnolessthanhalfofallissuedsharesrepresentedbyshareholdersattheshareholders’meeting.

6. Right to propose a meeting agenda or nominate a candidate for the election of company directors

Oneshareholderorgroupofshareholderswhoholdanaggregateofatleast5percentofallissuedsharesisentitledtoproposeanissue,oritem,fortheagendaaswellasnominateacandidatefordirectorattheAnnualGeneralMeetingofShareholders.In2010,theCompanyallowedshareholderstoproposeissuesoritemstotheagendaandnominatecandidatesforthepositionsofdirectorfrom11Novemberto31December2010viawww.bjc.co.thtotheBoardofDirectorsforconsideration.IftheBoardofDirectorsrefusedanyshareholders’proposal,theBoardofDirectorswillclarifytheirreasonsonthedayofthemeeting.

7. Shareholders’ meeting

TheCompanyconvenesTheAnnualGeneralMeetingonceayearwithinfourmonthsaftertheendofthefinancialyearatatimestipulatedbytheBoardofDirectors.Inthecasethatthereareanyurgentissuesariseespeciallytheissuesthatrequiretheimmediateattentionmattersthatmayaffecttheshareholders’benefits,thecompanywillcalltheExtraOrdinaryGeneralMeetingofShareholderson thecasebycasebasis. In relation to thedeliveryof thenoticeof themeeting, theCompanyhasassignedtheThailandSecurityDepositoryCompanyLimited(TSD)whoistheCompany’sRegistrarhandlingoverallprocessofdelivery.Theshareholderswillbedeliveredallnecessaryinformationsuchastheminutesofthepreviousmeeting,annualreport,thepowerofattorneyforassigningproxyetc.Thenoticeofthemeetinghasbeensent21dayspriortothemeetingdateandwaspublicizedonThaidailynewspaperwithatleast3consecutivedayspriortothemeetingdateinordertoensurethateachshareholderreceivethesufficientinformation.TheCompanyhasalsodisclosedtheNoticeoftheAnnualGeneralMeetingoftheShareholder,agendaitemsandothersupportingdocumentsintheCompany’swebsite;www.bjc.co.th.

In2010,theCompanyhelditsAnnualGeneralMeetingofShareholderson29April2010atMeetingRoom.1,12thFloor,BerliJuckerHouse,99SoiRubiaSukhumvit42Road,Phrakanong,Klongtoey,Bangkok,whichissituatedataconvenientlocationfortransportationandislargeenoughtoaccommodateallthoseattendingthemeeting.Themeetingwasrecordedinwriting,voicerecordingandvideotape.

Forthe2010AnnualGeneralMeetingofShareholders,14directorsattendedand1directorwasabsentwhichwas93.33percentofthedirectorsattendedthemeetingcomprisedofChairman,ChairmanofSub-Committee,Presidentaswellastopexecutivesattendingthemeeting.Duringthemeeting,thechairmanallowedtheshareholderstoquestionforclarificationofallinformationandtheDirectorswerereadytoanswerthesequestions.Intermofthefinancialreport,theCompanyauditorsandtopexecutivesresponsibleforaccountingandfinancingwerealsoinattendancetoanswershareholderquestions,undertheBoardofDirectorsSupervision.

TheCompanyallowedshareholderswhocouldnotattendthemeetingbyproxyamemberoftheAuditCommitteeandthreeindependentdirectorsofthecompany.Thenamesandpositionswereprovidedtotheshareholderssotheycould

330 331330 331

selectfortheirbehalfinaccordancewiththedetailsofoneofthreeproxyformsprovidedbytheMinistryofCommerceattachedtothenotice.Furthermore,theshareholdercoulddownloadtheProxyformfromtheCompany’swebsite.However,ineachagenda,shareholderscanalsoaskforvotingthroughasecretballotupon,atleast,ifoneshareholder’srequestcertifyingbyanotherfiveshareholders,forseekingapprovalfromtheShareholders’Meetingtovotebyasecretballot.

Onthemeetingdate,theCompanyusesthebarcodesystemforregistrationtoensureconvenienceforshareholders.Aseachreferencenumberisalreadyincludedintheregistrationandproxyforms.Inaddition,foreachagenda,theCompanywillcollecttheballotfromtheshareholdersforeachvote.Atthecompletionofthemeetingshareholderscanverifytheresultsofeachvote.

ImmediatelyafterthecompletionoftheAnnualGeneralMeetingofShareholders,theCompanyissuedacommunicationoftheresolutionspassedatthemeeting.ThisinformationwasthenpostedelectronicallyontheSETwebsitewithinthenextworkingdayforshareholderswhodidnotattendthemeetingtomakethemawareofallactionstakenattheshareholdersmeetingasquicklyaspossible.AfullreportoftheshareholdersmeetingwasalsosubmittedtoSETandtheMinistryofCommerceaswellaspostedontheCompanywebsite.However,therewasnoneExtraOrdinaryGeneralMeetingofShareholdersbeingheldin2010.

2) EquitableTreatmentofShareholders

TheCompany isawareofandworks toprovideequitable treatmentofeachshareholder,majororminor,aswellasinstitutionalorforeigninvestors.Tothateffect,theCompanyrealizesitisalsoresponsibleforensuringthatnoshareholderhasanymisunderstanding.Itstrivestoseriouslyshowearnestcompliancewithallregulationsandmechanismswhichareincorporatedinallbusinessesrelatedtoshareholders,especiallyminorshareholders,includingthefollowing:

1. TheCompanyhasenforcedCodeofConductwiththedirectors,managementandallemployeesasguidelineforperformingbusinessoftheCompanysince2008,focusingonpracticeofconflictofinterest,especiallyconnectedtransactionundertheregulationofSETwhichwereincurredfromthoseamongtheCompany,subsidiariesandconnectedpersontoensurethefairtreatmentandnonbenefitofferingtoanyconnectedpersons.

2. TheBoardsetsthemeetingagendaandprovidesallrelevantinformationundereachagendaiteminadvanceandneveraddsitemstotheagendawithoutpriornotification.TheBoardprovidesshareholderswiththeopportunitytonominateandelectindividualdirectorsbyvotingforeachdirectorontheagenda.Thechairmanofthemeetingthenannouncestheresultstomaintaintransparency.

3. Explanationofshareholders’rightsandvotingproceduresduringeachshareholder’smeetinghasbeenprovidedindetailbeforeopeningthemeeting.Inadditiontotheinformationincludedwiththemeetingnotices,theshareholdershavetherighttoquestionanyoutstandingitemstotheirsatisfactionbeforeregisteringtheirvoteoneachitemoftheagenda.

4. TheCompanyprovidesaproxyformforshareholderswhocannotattendtheshareholders’meeting,onwhichtheycanindicatetheirvotesasisstipulatedintheformissuedbytheMinistryofCommerceandenclosedwiththemeetingnoticessenttoshareholders.Thisformallowstheshareholderstoappointaproxytorepresentandvoteforhimorheratthemeeting.


330 331

Inaddition,thecompanyentitlesshareholderswhoenterthemeetinglatertovoteontheitemsontheagendaunderconsiderationandallitemsthathavenotbeenconsideredforresolution.Theseshareholdersorproxieswillalsobecountedasamemberof thequorumfromthemoment theyenter themeetingandforallvotesthereafter,except in thecasetheshareholders’meetinghasadifferentopinion.

5. AstheCompanyisthePublicCompanyLimitedentity,wheremostoftheshareholdersattendingtheAnnualGeneralMeetingareThai,therefore,Thaiwillbeusedastheofficiallanguageinthemeeting.

6. TheCompanysetsstandardsforsecurityandprotectionofinside(internal)informationclearlyinwritingandissuesthemtoallemployees.Inaddition,itadherestostrictproceduresintheissuanceofinformationbySECunderClause59oftheSecuritiesandExchangeActof1992.Ifthedirectorsandmanagementbuyorsellcompanyshares,theymustlistthetransactionsfortherelevantagenciesandsendcopiestotheCompany.Asforthemonitoringofdirectorsandmanagementuseofinsideinformationforpersonalgains,theCompanyhasmadeitcleartoallpartiesbyissuingamanualonproperproceduresforstrictadherence.Nobuyingorsellingofthesharesbydirectorsandanymanagementteammemberoccurredwithinthreeweeksbeforethepublicationofthefinancialstatementsandtwodaysafterthedisclosureofthefinancialstatements.Requirementsofalldirectorsandtopmanagementtoimmediatelydiscloseinformationwhentheyencounterpotentialbenefitsasathirdparty,eitherdirectlyorindirectly,thatpotentiallyaffectstheCompany.

3) RolesofStakeholders

Thecompanyvaluestherightsofstakeholdersandtherefore,adherestoallrelevantlawsandregulationstoprotecttheirrights.In2010,theCompanycontinuedtoensurethatallstakeholderswereproperlytreatedasfollows:

Shareholders:TheCompanyadherestoitspledgegiventoshareholdersandstrivestoconductbusinessefficientlytoearnmaximumprofitstopaydividendstoshareholdersataconstantandsuitablerate.

Employees:TheCompanyrecognizesthatitsemployeesarethemostvaluableassetandisdeterminedtoensurethateachemployeeisproudandconfidentintheCompany.Italsoensurestheprovisionofequitabletreatmenttoallemployeesbyprovidingreasonableremunerationpackage,socialresponsibilityandanyotherbenefitsthattheemployeesareentitledbylaw.TheCompanyalsoencouragestheemployeestohavethesavingwiththeCompany’ssavingcooperationinordertosecuretheirfuturefinancialstability.

Customers:TheCompanyaimsforcustomers’satisfactionanddeterminedtogiveusersproductsandservicesofthemaximumbenefitinqualityandprice,andtodevelopandmaintainsustainablerelationshipswithitscustomers.Therefore,ithasestablishedadedicatedofficetoprovideadvicedealingwithitsproductsandproblem-solvingtips,andtohandlecomplaintstoensurethetotalsatisfactionofthecustomers.

Business Partners:Tocomplywiththetradingcompetitivecontextbystrictlyupholdingitspromises,itsCodeofConductandcommitmentstopartnersincludingprovidingqualityproductswithon-timedelivery.

Competitors:TheCompanyoperateswithinacompetitivecontextbybeingfairandstrictlyfollowingthelawsanditsCodeofConductbysharingnewsandinformationinafriendlycooperativeframework.

332 333332 333

Creditors:TheCompanyhonorsthetermsofloansanditsobligationstocreditorsandensuresthefairtreatmentbypayingfullresponsibilityanddisclosureoftrueandcorrectinformationtothecreditors.InthecasethattheCompanyforeseesanyimpossibilitiesinfollowingthetermsasagreed,theCompanywillimmediatelyinformthecreditor.

Society:TheCompanysponsorsactivitiesthatwillimprovethequalityoflife:local,particularlywhereitsfactoriesarelocated, to thenation level,especially in thedevelopmentofpeople’spotential.TheCompany founded theBerli JuckerCompanyFoundationtosponsorandsupporteducationfromtheprimaryleveluptoundergraduateprogramsforstudentsofpublicuniversitiesthroughtheOfficeofHigherEducation,includingscholarships,donationsandactivitiestohelpneedyruralschools.

4) DisclosureandTransparency

TheCompanyrealizestheimportanceofinformationdisclosurecompletelyandtransparentlybystrictlyadheringtoalllaws,rulesandregulationsstipulatedbytheOfficeoftheSecuritiesandExchangeCommission,theSETandallrelevantgovernmentagenciesandfollowallamendmentsastheyareenacted.TheCompanyadheresstrictlytoregulationstoensureallshareholdersthattheCompanyoperatesinatransparentandstraightforwardmanner,forexample:

1. Discloseaccurate,completeandtimelyfinancialinformationandnon-financialinformation,suchasthefinancialstatements,Company’sperformance,intercompanytransactionoftheCompany,itssubsidiaries,associatesandrelatedpersonandotherinformation,asstipulatedunderlawsforthedisclosureofinformationthatwouldaffecttherighttobenefitsorinvestmentdecisionsbyshareholdersorinvestors.

2. Discloseinformationrequiredfordisclosurewhentheinformationwillbebeneficialforanystakeholder.ThiscanincludetheCompany’sobjectivesandregulations,shareholders’shareholdingstructure,detailsofvotingrightsofCompany’ssecuritiespropertyandremunerationoftheBoardofDirectorsandtopexecutivesaswellasthequalifications,experienceandindependenceofeachdirector,listinginformationandmanagementstructureandoperationsaccordingtoprinciplesofgoodgovernance.

3. Preparequalitystandardinformation,particularlycompanybudgetandprofitsthatmustpasstheconsiderationandauditingofareputableindependentauditorandtheAuditCommitteethathasexperience,knowledgeandtheabilitytoauditandberesponsibleforthetasksassignedbytheBoardofDirectorsfortheannualreport.

4. MaintaincorrectinformationforproperdisclosuresostakeholdersandinvestorsareawareofcompanynewsthatisdisclosedbytheSETandontheCompany’swebsite.

5. TheCompanyassignstheExecutiveDirectorstoberesponsibleforthedisclosureofcompanyinformationtoinvestors.In2010,theExecutiveDirectorsmetwithinvestorsatSETduringtheOpportunityDayanddisclosedinformationtomarketanalystsandinvestors.

6. Tomotivatethedirectors,executivesaswellasstafftorealizethevalueofgoodcorporategovernance.


332 333

5) ResponsibilitiesoftheBoardofDirectors

Structure and Scope of Duties and Responsibilities

TheBoardofDirectorsrealizesitsresponsibilitiestoalwaysactinaccordancetothelawwithmeticulouscareinthesupervisionoftheCompany’soperationsadheringtothecodesofDutyofCareandDutyofLoyaltytowillprovideutmostbenefittotheCompanyandshareholdersaswellasallstakeholdersbyadheringtoGoodCorporateGovernance.ThiswillassisttheCompanytogrowtogetherwithsocietyinasustainablemanner.

TheCompanyhasdevelopedacompanystructure toensureclosesupervisionandefficientmanagement inallaspects.TheirworkmustpassthescrutinyofallsubcommitteestoensureconfidenceintheManagementBoardandachievetheCompany’svisionandgoals.TheBoardofDirectorsisresponsibleforestablishingtheCompany’svisionandsupervisingbusinessinaccordancetotheCompany’svision,obligations,strategy,goals,andbusinessplan.ItmustalsosupervisetheManagementBoardtoensureitadherestothebusinessplanandbudgetefficiently,aswellasanymatterthatrelatestotheCompany’sreputationthatisapprovedbytheReputation(Image)ManagementBoard.ThereisalsotheAuditCommittee,whichisalsoresponsibleforallinternalfinancialcontrolsandinspection.Finally,thereistheNominationandRemunerationCommitteeresponsibleforsettingandsupervisingremuneration,andsearchforTopExecutives.(Relevantdetailsofresponsibilitiesofthesubcommitteesarelistedundertheheading,“ManagementStructure)

TheCompanyrealizestheimportanceofhavingapropernumberofindependentdirectors.ToensurethetrustofminorshareholdersintheCompany,theCompanyhassetadirectionforbusinessthatistransparentandensuresmaximumbenefitforeveryshareholder.In2009,oneindependentdirectorwasrecruitedtofillthepositionofdirectorthathadbeenvacatedduringtheperiod.Meanwhileasearchwasconductedforasuitableindividualtoincreasethenumberofindependentdirectorstobenolessthanone-thirdoftheCompany’stotalnumberofdirectors.

TheCompanystrivestohaveallcommitteeworkinthemosttransparentfashion.Therefore,theCompanyhasfixedspecifictasksforeachsubcommittee.ThisinformationhasbeenpostedontheCompany’swebsite.TheBoardofDirectorshasappointedaCompanysecretarytosupporttheworkoftheBoard,inaccordancewithregulationsconcerningresponsibilities.ThispersonisrequiredtokeepareportofallBoardofDirectorsmeetingsandshareholdersmeetingsaswellasannualreportsandstoreallrelevantdocumentsaccordingtothelaw.TheCompanysecretaryappointedbytheBoardofDirectorsmustbesuitable,meaningtheymusthaveexperience,knowledgeandtheabilitytoadvisethedirectorssotheyactinaccordancetotherelevantlaws,rulesandregulations.

Internal Control and Audit System

AttheBoardofDirectorsMeetingNo.1/2011heldon24February2011,theAuditCommitteewasalsoinattendance.TheBoardofDirectorsapprovedthereportaspresentedbytheAuditCommitteeoninternalcontrolswhichtheCompany,BerliJuckerPublicCompanyLimitedandsubsidiaries(GroupofCompanies)whichallhaveimplementedtoprotectpropertybelongingtotheCompanyanditssubsidiariesthatthemanagementisnotresponsiblefor.ItalsorecommendedadjustmentstotheinternalcontrolsystemtobestadapttochangingconditionseffectivelyinorderfortheCompany’sandsubsidiaries’

334 335334 335

operationstomeetestablishedobjectivesandrelatedlawsandregulationsfollowingtheauditoftheCompany’sfinancesfor2009bythecompanyauditor.Itmustbenoted,theCompanyauditorcannotobservetheinternalcontrolsystemundertheguisethatthiscouldcauselossintheoperationsoftheCompanyinanyway.

Evaluation of Directors’ Performance

TheCompanygivesimportancetocreatingagoodworkingatmosphere,whichincludesthesuccessionofdirectors.Therefore,itsupportsthepresentationofdifferentideasfreelyandindependentlytoestablishtherightdirectionfortheCompanytofollowtoensuremaximumbenefitfortheCompanyandshareholders.TheCompanythusemploysthemostmeticulouscareinitsoperations,whichincludestheperformanceoftheBoardofDirectors.Therefore,theCompanyhasdecidedtoevaluatetheperformanceoftheBoardofDirectors.Thechairmanwillserveinthecapacityofevaluatorandwillspeakprivatelywitheachdirector.IftheChairmanseesthereisanissuethatmustbeconsidered,theChairmanwillacteitheraloneorwiththeassistanceoftheBoardtofindasolution.

In2010,theCompanywasintheprocessofstudyingitsmethodofevaluationoftheperformanceoftheBoardofDirectorstoincreasequantitativeandqualitativedata.Itisexpectedthisnewevaluationwillbeimplementedin2011.

Development of Directors’ Knowledge and Skills

TheCompanyencouragesdirectorsandtopexecutivestojoinseminarsthatwillimprovetheirperformanceaswellasprovideanopportunitytoexchangeideaswithdirectorsandexecutivesofotherorganizations.TheseminarsareorganizedbytheCompanyandgovernmentagencieswhichincludethoseofferedbytheThaiDirectorsInstituteattheOfficeoftheSecuritiesandExchangeCommissionforwhichthedirectorsmustregisterforatleastonecurriculum.TheseincludeDirectorCertificationProgram(DCP),DirectorAccreditationProgram(DAP)andAuditCommitteeProgram(ACP) toexpand theirknowledgeandexperiencetohelptheorganizationtocontinuetogrow.

Control of Use of Internal Information

TheCompanyhasinstitutedamethodtocontrolcompanydirectorsandtopexecutivesontheuseofinternalinformationfortheirbenefitasalreadyexplainedundertheheading,“EquitableTreatmentofShareholders”.Toensureallpersonnelactethically,theCompanyhasissuedastaffmanualtoprovideinstructionforperformanceinaccordancetorulesandregulationsinwork,remuneration,disciplineandpunishmentandconfidentialityaswellasbenefits.ThisemployeemanualisprovidedtoeachemployeewhentheybeginworktoensureallknowhowtheymustperformaccordingtotheCompany’scodeofconduct.

Code of Conduct

AttheBoardofDirectorsMeetingNo.7/2008heldon13November2008,aresolutionwasapprovedfortheCompanytowriteaCodeofConducttobegiventodirectors,topexecutivesandstaffsotheyclearlyunderstandthestandardsofconducttheCompanyadherestoinitsbusinessoperationsandtransactions.TheBoardofDirectorstheninformedallrelevantpersonsthroughtheinternaldepartmentsandontheCompany’swebsiteasof14November2008.


334 335

Remuneration of Directors and Management

TheCompanyinstitutedremunerationfortheBoardofDirectorsthatiscomparabletotheremunerationoftheBoardofDirectorsofother leadingcompaniesatthenational levelandwithinthesameindustrysector.TheBoardofDirectorsinvestigatedandthensettheremunerationthatamoderatorpresentedtotheBoardofDirectorsandtheshareholdersmeetingapproved.Asfortheremunerationoftopexecutives,theBoardofDirectorsinvestigatedandsetremunerationthatamoderatorpresented,andtheBoardofDirectorsconsideredthisasistheirresponsibilityafterconsideringtheperformanceofeachindividualaswellastheresultsofeachbusinesstogetherwiththeremunerationofothertopexecutivesinthebusinessandindustrysector.ThemethodofpaymentofremunerationissuitableinrelationtotheCompany’sperformanceandearningsandtheperformanceofeachindividualthatclearlyreflectsearningsandwillsufficientlymotivatetheindividualinamannerthatwillensuretheirthecontinuedserviceifdesired.

5. Management of Internal Information

TheCompanyadherestoapolicyandmethodofsupervisiontopreventthereleaseofinternalinformationforpersonalbenefitinaccordancewiththeCompany’scodeofconductwhichispostedontheCompany’swebsite,www.bjc.co.th,andhasbeenacceptedbytheCompany,itssubsidiariesandassociates.AsaregisteredpubliccompanyontheSET,theCompanymustadheretotherelevantlawsconcerninginternalinformationtomaintainimpartialityandneutralityforallshareholdersandtopreventanyillegalactionbycompanypersonnelatalllevelsaswellasmembersoftheirfamilies,usinginformationthathasyettobedisclosedtothepublic.TheCompanyforbidsindividualsfromtellingofanypurchases,orsalesofsharesorencouragementofotherstopurchaseorsellcompanyshares,orofferstopurchaseorsellCompanyorasubsidiary’sshares,orassociatesoftheCompanywhichisregisteredontheSET,whetheritisbyoneselforthroughproxy.

6. Human Resources

TheCompanyhasatotalof6,471employees,whichcanbedividedaccordingtobusinessesasfollows:

1. IndustrialSupplyChain 2,388 persons

2. ConsumerSupplyChain 3,111 persons

3. HealthcareandTechnicalSupplyChain 552 persons

4. Others 420 persons

TheCompanypaidtotalremunerationsforallemployeesin2010approximately2,457.2millionbaht,includedsalaries,bonuses,providentfundandotherwelfareetc.

336 337336 337

TheCompanyadherestoapolicythatstresseshumanresourcesdevelopmentasfollows:

1. Tosupportanddevelophumanresourcestoincreasetheirabilitiesandknowledgesotheycanachievetheirfullpotential.

2. Toensorethesuccessincareerpathofouremployees.

3. Todevelopahumanresourcessuccessionplantogivepersonneltheabilitiestobepromotedtohigherpositions.

4. Todevelopleadershipskillsandabilities.


336 337

Internal Audit and Control System

“...the Board of Directors ensures that the executives are role models for employees and are honest and strictly adhere to code of conduct which is clearly stated in writing...”

Internal Audit and Control System

Berli JuckerPublicCompanyLimited (the “Company”) realizes the importanceofriskmanagementandinternalauditsystemsthataresufficientandappropriateforitsbusinessoperations.TheCompanyiscommittedtosustainablegrowth,transparencyandgoodcorporategovernancepractices.Ithasspecifiedtheduty,responsibility,andauthorizingpowerforbothmanagementandoperationlevelsinwriting,whichcovers the financial control system, operations, resourcesmanagement, assetsmanagement,andregulationsof theCompanyand theBJCGroup(“BJC”).SuchactionshelptheCompanytooperateitsbusinessefficientlyandeffectively,aswellasreduceandpreventrisks,whileenablingBJCtoachieveitsvisionandmission.Majoractivitiesareasfollows:

1) ControlEnvironment

The Company has clearly set vision, mission, values and culture of BJC andcommunicatedthemacrosstheorganizationinwriting.Forbusinessobjectivesandtargets,theCompanyhasreviewedandconsideredbyusingBalancedScorecardtodefineemployee’sreward.TheCompanyhasstructuredthebusinessbydividingintofourbusinessgroupsbytypeofbusinessformorestreamlineandefficiencyofoperations.Inaddition,theBoardofDirectorsensuresthattheexecutivesarerolemodelsforemployeesandarehonestandstrictlyadheretocodeofconductwhichisclearlystatedinwriting.TheCompanyclearlycommunicateswithallemployeesaboutcodeofconductthroughtheCompany’sIntranetsystem,whilesettingclearrolesandresponsibilitiesofall levelsofexecutivesandoperationstaff,aswellasprovidingforcontinuoushumanresourcedevelopment.

2) RiskAssessment

TheCompany appointed theRiskManagementCommittee (the “Committee”) toproperly assess significant risks both internal and external risk factors that mayaffectthevisionandmissionofBJC,includingestablishedriskmanagementpolicyby classifying as four types i.e. strategic, operational, financial, and compliancerisk. The Committee is responsible for defining risk management strategy to bealignedwithriskmanagementpolicy.Also,theCommitteeanalyzes,assesses,and

338 339338 339

monitors compliance with defined risk management policy to be consistent with vision and mission of BJC, as well asrelatedrulesandregulations.

3) ControlActivities

TheCompanyhassetthesignificantpoliciesandproceduresforbusinessoperationstoserveasguidelinesfortheCompanyoperationsystematicallyandefficientlyandtoachieveBJC’svisionandmission.Italsohasclearscope,authoritiesanddutiesofmanagementateach levelbysegregatingofduties intothebusinessgroupforeffectivemanagement.TheCompanyhasestablishedpoliciesandprocedures, including regularlyupdated thescheduleofauthorities forgreater flexibility inbusinessoperation,aswellasconductedawrittenreportonaregularbasis.Inaddition,theCompanyalsomonitorsbusinessoperationsandtherelatedtransactionortransactionsthatmayhaveaconflictofinteresttobeaccuracyandcompletenessofitssubsidiariesorassociatesonaregularbasis,closelymanagedbythedirectorormanagementoftheCompanytobedirectorofsubsidiariesandassociatedcompaniestoensurethattheactualoperatingisundernormalbusinessconditionsaccordingtotheNotificationoftheBoardofGovernorsoftheStockExchangeofThailandRe:DisclosureofInformationandOtherActsofListedCompaniesConcerningtheConnectedTransactionsB.E.2546(2003).

4) InformationandCommunication

TheCompanyprovidesanintegratedinternalandexternalinformationsystemandcommunicationtosupportinformationexchange,analysisandreportingtoallconcernedpartiestoensurethatallpartiesconcernedhaveaccesstocorrect,complete,timelyandsufficientinformationtosupportthedecisionmakingprocess.TheCompanycontinuouslydevelopsitsinformationsystemthroughtheimplementationofSAPinordertogeneratenewbusinessopportunitiesandstrategicadvantages,aswellastoperformbackupdataofallinformationsystem.

5) Monitoring

BoardofDirectorsoftheCompanyhasassignedtheManagementBoardtomonitorandevaluateperformanceonaregularbasis.TheCompany’sinternalauditorshaveindependentlyauditedtheinternalcontrolsystemaccordingtotheannualauditplanandreportedtotheAuditCommitteeandManagementBoard.Inthecaseoffindingamaterialweaknessofinternalcontrol,therecommendationtopreventandreduceriskswillbereportedandsuggestedforbeingimprovementatspecifiedtime,additionallytoprovidemanagementwithreasonableconfidenceatalltimesthattheeffectivenessofinternalcontrolisalways.

AttheCompany’sBoardofDirectorsMeetingNo.1/2011on24February2011,theAuditCommitteewasinvitedtojointhemeeting.TheBoardofDirectorsapprovedtheAuditCommitteeReportonthesufficientandappropriateinternalcontrolofBJC.TheAuditCommitteealsoreportedtotheBoardofDirectorsthatithasmonitoredandfoundthatBJChaspreventedtheabuseofassetsbyexecutives.Theinternalcontrolsystemswerealsoefficientlyimprovedtobetteraddressthechangingenvironment,whichallowsBJCtoachieveitsvisionandmission,andtostrictlycomplywithalllawsandregulations.

Inaddition,theauditofBJC’sfinancialstatementsfortheyear2010bytheExternalAuditoroftheCompanydidnotrevealanysignificantissuesconcerningtheinternalcontrolsystemwhichmaycausedamagetotheoperationoftheCompany.


338 339

Details of Shareholding

Subsidiaries

BJCGlassVietnamLimited Vietnam Development,Construction, - - - USD - 100.00 Management,manufacturer 52,740,000 ofhighendglassware

Thai-ScandicSteelCo.,Ltd. Rayong Manufacturesofgalvanized Ordinary 4,560,000 100 456,000,000 4,560,000 99.85 steelstructures Preference 1,300,000 100 130,000,000 1,300,000 99.85

ThaiGlassIndustriesPublicCo., Bangkok Manufactureofglass Ordinary 117,000,000 10 1,170,000,000 115,355,235 98.59Ltd. containers

BerliJuckerFoodsLtd. Bangkok Manufactureranddistributor Ordinary 3,200,000 100 320,000,000 3,200,000 100.00 ofsnackproducts

BerliJuckerLogisticsLtd. Bangkok Customclearing, Ordinary 500,000 100 50,000,000 500,000 100.00 warehousing,transportation anddistributionservices

JacyFoodsSDN.BHD. Malaysia Manufacturerofsnack Ordinary 12,000,000 Ringkit1 Ringkit 12,000,000 100.00 products 12,000,000

RubiaIndustriesLtd. Samutprakarn Manufacturesofsoap, Ordinary 70,000 1,000 70,000,000 69,892 99.85 cosmeticsandconfectionery

BerliJuckerCelloxLtd. Bangkok Manufactures,marketsand Ordinary 90,000,000 10 900,000,000 85,354,470 94.84 distributesofsanitarypaper

ThaiCorpInternational(Vietnam) Vietnam Import,Export,Distributor, - - - VND - 75.00Co.Ltd. Retailer 5,400,000,000

BJCHealthcareCo.,Ltd Bangkok Salesofhealthcare Ordinary 20,000,000 10 200,000,000 20,000,000 100.00

(FormerlycalledBJCTrading products,chemicalandCo.,Ltd.) hospitalsupplies

CosmaMedicalCo.,Ltd. Bangkok SalesofHealthcareProducts Ordinary 50,000 100 1,325,000 50,000 100.00

MontanaCo.,Ltd. Bangkok Salesofcosmeticsand Ordinary 500 1,000 500,000 500 100.00 machinery

BerliJuckerSpecialtiesLtd. Bangkok Salesofchemicalproducts Ordinary 18,250 3,500 63,875,000 18,095 99.15

BJCInternational(Vietnam) Vietnam Manufactureofglass - - - USD - 100.00Limited(FormerlycalledVina containers,importand 14,000,000GlassIndustriesCo.,Ltd.) export,retailing,saleofraw materials

BJCInternationalCompany HongKong Trading,ImportandExport Ordinary 48,000,000 HKD1 HKD 48,000,000 100.00Limited 2,200,000

BJCInternationalCo.,Ltd. Bangkok Importandexportproducts Ordinary 10,000,000 10 25,000,000 10,000,000 100.00 andrawmaterials

BJCGlassCompanyLimited HongKong Investment,Trading,Import Ordinary 10,000 HKD1 HKD10,000 10,000 100.00 andExport

BerliJucker(Myanmar)Ltd. Myanmar Importandexport Ordinary 510 Kyats Kyats510,000 510 100.00 1,000

Details of Shareholding in Juristic Persons (BJC Group’s Shareholding Over 10%) as of 31 December 2010

% OF TYPES NUMBER PAR PAID-UP NUMBER SHARE- NAME OF COMPANY HEAD OFFICE TYPE OF BUSINESS OF OF SHARES VALUE CAPITAL OF SHARES HOLDING / SHARES ISSUED (BAHT) (BAHT) HELD INVEST- MENT

340 341340 341

ThaiCorpInternationalCompany HongKong Investmentvehicle Ordinary 17,000,000 HKD1 HKD 12,750,000 75.00Limited 6,000,000

RubiaInvestmentsLtd. BritishVirgins Investmentvehicle Ordinary 30,000 1,000 30,000,000 30,000 100.00 Islands

T.C.C.TechnologyCo.,Ltd. Bangkok Informationtechnology Ordinary 18,000,000 10 180,000,000 9,180,000 51.00 services

Joint Venture

BJCO-IGlassPte.,Ltd. Singapore Marketing,Distributorof Ordinary 154,450,000 USD1 USD 77,225,000 50.00 Glasscontainersandall 257,926,000 relatedglassproducts Preference 103,476,000 - - 30,188,000

MalayaGlassProducts Malaysia Marketing,Distributorof Ordinary 55,000,000 Ringkit1 Ringkit 27,500,000 50.00SDN.BHD. Glasscontainersandall 55,000,000 relatedglassproducts Preference 172,225 - - 86,112

BerliAsiaticSodaCo.,Ltd. Bangkok Salesofsodaash Ordinary 6,400,000 6.25 40,000,000 3,200,000 50.00

Associated Company

ThaiBeverageCanCo.,Ltd Saraburi Manufacturesandmarketing Ordinary 100,000,000 10 1,000,000,000 50,000,000 50.00 aluminumcansandends

BerliDynaplastCo.,Ltd. Bangkok Manufacturesofrigid Ordinary 3,039,334 100 303,933,400 1,489,270 49.00 plasticcontainers

MalayaVietnamGlassLtd. Vietnam Glasscontainerforbeer - - - USD - 35.00 andsoftdrink,foodproduct 29,100,000

ThaiMalayaGlassCompany Saraburi ManufacturerandDistriibutor Ordinary 8,700,000 100 8,700,000 4,437,000 35.00Limited ofGlassContainer

GaewGrungThaiCo.,Ltd. Ayutthaya Distributorofglassscrap Ordinary 3,200,000 100 320,000,000 800,000 25.00 andplastic

Others

SiamCementMyanmarTrading Myanmar Cementdistributor Ordinary 220 Kyats Kyats 33 15.00Ltd. 6,000 1,320,000

Dormant

BJCMarketingCo.,Ltd. Bangkok Dormant Ordinary 10,000,000 10 100,000,000 10,000,000 100.00

BJCIndustrialandTrading Bangkok Dormant Ordinary 25,000,000 10 250,000,000 25,000,000 100.00Co.,Ltd(FormerlycalledBJCEngineeringCo.,Ltd.)

ThaiFluorspar&Minerals Bangkok Dormant Ordinary 20,000 100 2,000,000 20,000 100.00Co.,Ltd.

Marble&StonesCo.,Ltd. Bangkok Dormant Ordinary 998,000 100 99,800,000 998,000 99.77

BJCMarineResources Bangkok Dormant Ordinary 100,000 1,000 94,400,000 50,000 50.00DevelopmentCo.,Ltd.

% OF TYPES NUMBER PAR PAID-UP NUMBER SHARE- NAME OF COMPANY HEAD OFFICE TYPE OF BUSINESS OF OF SHARES VALUE CAPITAL OF SHARES HOLDING / SHARES ISSUED (BAHT) (BAHT) HELD INVEST- MENT


340 341


Packaging Products Division99SoiRubia,Sukhumvit42Road,KwaengPhrakanong,KhetKlongtoey,BangkokTel : (662)367-1513Fax : (662)381-4540

Thai Glass Industries Public Company Limited15Moo1,RajburanaRoad,KwaengRajburana,KhetRajburana,BangkokTel : (662)427-0060-3Fax : (662)427-6603

Thai Beverage Can Limited99Moo9SILIndustrialLand,NongplakradiRoad,TambolNongpling,AmphurNongkhae,SaraburiTel : (6636)373-600Fax : (6636)373-601

Berli Dynaplast Company Limited99SoiRubia,Sukhumvit42Road,KwaengPhrakanong,KhetKlongtoey,BangkokTel : (662)381-5088Fax : (662)381-5788

Thai Malaya Glass Co., Ltd.28Moo1SILIndustrialLandTambolBualoy,AmphurNongkae,Saraburi

Tel : (6636)373-821-27Fax : (6636)373-812-17

Contact Information

Engineering Division99SoiRubia,Sukhumvit42Road,KwaengPhrakanong,KhetKlongtoey,BangkokTel : (662)367-1171Fax : (662)381-4541

Thai-Scandic Steel Company Limited7,I-5Road,MabTaPhutIndustrialEstate,TambolMabTaPhut,AmphurMuang,RayongTel : (6638)683-066-70Fax : (6638)683-065


Consumer Marketing Division99SoiRubia,Sukhumvit42Road,KwaengPhrakanong,KhetKlongtoey,BangkokTel : (662)367-1603Fax : (662)367-1827

Consumer Sales Division99SoiRubia,Sukhumvit42Road,KwaengPhrakanong,KhetKlongtoey,BangkokTel : (662)367-1671Fax : (662)367-1718

Berli Jucker Cellox Limited330Moo9,Bangna-TradRoad,TambolBangchalong,AmphurBanplee,SamuthprakarnTel : (662)312-6115-8Fax : (662)312-6173

Berli Jucker Foods Limited225/10Moo1,TheparakRoad,TambolBangsaothong,AmphurBangsaothong,SamutprakarnTel : (662)313-1470-3Fax : (662)313-1031

Rubia Industries Limited70Moo13,PoochaosamingpraiRoad,TambolBangyaprake,AmphurPrapradaeng,SamutprakarnTel : (662)385-9024Fax : (662)385-9355

Berli Jucker Logistics Company Limited99SoiRubia,Sukhumvit42Road,KwaengPhrakanong,KhetKlongtoey,BangkokTel : (662)367-1460Fax : (662)712-2273

Jacy Foods SDN BHDLot1,JalanPelabur23/1Section23,40300ShahAlam,Selangor,MalaysiaTel : (603)5542-3566Fax : (603)5542-0131

Thaicorp International (Vietnam) Company Limited40Ba,HuyenThanhQuan,Ward6,District3,HoChiMinhCity,VietnamTel : (848)3811-7777 (848)3811-9999Fax : (848)3811-7816

342 343342 343

Healthcare and Technical Supply

Chain

Medical Products Division99SoiRubia,Sukhumvit42Road,KwaengPhrakanong,KhetKlongtoey,BangkokTel : (662)367-1243Fax : (662)381-4550

Cosma Medical Co.,Ltd.48SoiSamarnchan-Barbose,Sukhumvit42,KwaengPhrakanong,KhetKlongtoey,BangkokTel : (662)367-1252Fax : (662)367-1246

Medical Innovation Division99SoiRubia,Sukhumvit42Road,KwaengPhrakanong,KhetKlongtoey,BangkokTel : (662)367-1318Fax : (662)585-4747

Medical Equipment Division99SoiRubia,Sukhumvit42Road,KwaengPhrakanong,KhetKlongtoey,BangkokTel : (662)367-1263Fax : (662)367-1262

Specialties Division99SoiRubia,Sukhumvit42Road,KwaengPhrakanong,KhetKlongtoey,BangkokTel : (662)367-1755Fax : (662)381-4540

Graphics Division99SoiRubia,Sukhumvit42Road,KwaengPhrakanong,KhetKlongtoey,BangkokTel : (662)367-1334Fax : (662)367-1549

StationeryandOfficeSupplyDivision99SoiRubia,Sukhumvit42Road,KwaengPhrakanong,KhetKlongtoey,BangkokTel : (662)367-1540Fax : (662)367-1549

T.C.C. Technology Co., Ltd.30thFloor,ParkWing,EmpireTower195SouthSathornRoadYannawa,Sathorn,BangkokTel : (662)626-0000Fax : (662)626-0088


BJC International Company Limited99SoiRubia,Sukhumvit42Road,KwaengPhrakanong,KhetKlongtoey,BangkokTel : (662)367-1804Fax : (662)712-2241

Berli Jucker (Myanmar) LimitedNo.39(B),TawWinStreet,DagonTownship,Rangoon,MyanmarTel : (951)226-658Fax : (951)221-598

BangkokTel : (662)367-1017Fax : (662)712-2241

ResidentRepresentativeOfficeinVietnamFoscoII,BlockE,RoomE2140BaHuyenThanhQuanStreet,District3HoChiMinhCity,Vietnam

Ho Chi Minh CityTel : (848)3930-4312Fax : (848)3930-5925

HanoiTel : (844)2223-9241Fax : (844)2223-9242

BJC international Company LimitedRoom1504,Silvercord,TowerI,30CantonRoad,Tsimshatsui,KowloonTel : (662)367-1455Fax : (662)367-1441

BJC Glass Company LimitedRoom1504,Silvercord,TowerI,30CantonRoad,Tsimshatsui,KowloonTel : (662)367-1455Fax : (662)367-1441

Thaicorp International Company Limited38thFloor,TowerOne,LippoCentre,89Queensway,HongKongTel : (852)3188-8333Fax : (852)3188-8222


342 343

Corporate Information

HeadOffice&RegisteredOffice:

BerliJuckerPublicCompanyLimited

99SoiRubia,Sukhumvit42RoadPhrakanong,Klongtoey,Bangkok10110Tel : (662)367-1111Fax : (662)367-1000,(662)381-4545E-mail : [email protected] : www.bjc.co.thReg.no. : 0107536000226Capital : RegisteredCapital: Baht1,588,125,000.00 Paid-UpCapital:Baht1,588,125,000.00Shares : OrdinarySharestotaling

Baht1,588,125,000

Auditor:

KPMGPhoomchaiAuditLimited

50th-51stFloor,EmpireTower195SouthSathornRoad,YannawaSathorn,Bangkok10120Tel : (662)667-2000Fax : (662)667-2222

Solicitor:

WeerawongChinnavat&PeangpanorLimited

22ndFloor,MercuryTower540PloenchitRoad,LumpiniPathumwan,Bangkok10330Tel : (662)264-8000Fax : (662)657-2222

CompanyRegistrar:

ThailandSecuritiesDepositoryCompanyLimited

CapitalMarketAcademyBuilding2/7Moo4,(NorthPark)Vibhavadi-RangsitRoad,KwangTungHong,KhetLaksi,Bangkok10210,ThailandTel : (662)596-9000Fax : (662)832-4994-6

Company’sStockCode:

BJC

ShareListing:

TheStockExchangeofThailand

MajorBankers:

BANGKOKBANKPUBLICCOMPANYLIMITEDKASIKORNBANKPUBLICCOMPANYLIMITEDCREDITAGRICOLECORPORATEANDINVESTMENTBANKCITIBANK,N.A.TMBBANKPUBLICCOMPANYLIMITEDTHESIAMCITYBANKPUBLICCOMPANYLIMITEDSIAMCOMMERCIALBANKPUBLICCOMPANYLIMITEDBNPPARIBASSTANDARDCHARTEREDBANK(THAI)PUBLIC COMPANYLIMITEDTHEHONGKONGANDSHANGHAIBANKING CORPORATIONLIMITEDDEUTSCHEBANKAG.

344 PB

Directors’ Report

The Board of Directors is responsible for the consolidated financial statements of the company and its subsidiaries, and the financial information shown in the Annual Report.

ThefinancialstatementsarepreparedaccordingtotheaccountingstandardsacceptedinThailand,basedonappropriateaccountingpoliciesandcarefuljudgment,includingthedisclosureofsufficientinformationinnotestofinancialstatements.

TheBoardofDirectorsmaintainssufficient internalcontrols toensure that the recordingof financialdata iscorrect,complete,andsufficienttomaintainassetvalueandpreventfraud.

Alongwith this, theBoardofDirectors has appointedanAuditCommittee comprisingmemberswhoare not frommanagementtoverifythefinancialreportsandinternalcontrolsystems.ThissubjectisfurtherconfirmedbytheAuditCommittee’sReport in the Annual Report.

TheBoard ofDirectors is satisfiedwith the company’s internal control system and the accuracy of the financialstatements of the company and its subsidiaries as of December 31, 2010.

Aswin Techajareonvikul President

Charoen Sirivadhanabhakdi Chairman of the Board of Directors

PB 345Annual Report 2010 • Berli Jucker Public Company Limited

“...The Audit Committee of the Company performs in accordance with the Audit Committee Charter approved by the Board of Directors of the Company and the regulations issued by the Securities and Exchange Commission and the Stock Exchange of Thailand...”

TheAuditCommittee of Berli Jucker PublicCompany Limited (“theCompany”)comprisesthreeindependentdirectorswhoareknowledgeableandcompetent,skillfulandhighlyexperiencednamelyMr.StapornKavitanonastheChairmanoftheAuditCommittee,Mr.WeerawongChittmittrapapandDr.SuvitMaesinceeasthemembersoftheAuditCommittee.TheAuditCommitteeoftheCompany(“theAuditCommittee”)performsinaccordancewiththeAuditCommitteeCharterapprovedbytheBoardofDirectorsoftheCompanyandtheregulationsissuedbytheSecuritiesandExchangeCommission(“SEC”)andtheStockExchangeofThailand(“SET”).Itsundertakingsare summarized as follows;

1. In2010,theAuditCommitteeorganizedsixmeetings.TherewerefiveregularmeetingswiththeBoardofDirectors,GroupAuditDivisionofthecompany(“InternalAuditor”) andKPMGPhoomchaiAuditCompanyLimited (“ExternalAuditor”) andoncemeetingwiththeExternalAuditorintheabsenceofmanagement.Themeetingattendanceofeachcommitteemembersareasfollows;Mr.StapornKavitanonattendedfourtimes,Mr.WeerawongChittmittrapapattendedsixtimesandDr.SuvitMaesinceeattendedsixtimesrespectively.

2. ConsiderandreviewoftheCompany’sfinancialstatements,theExternalAuditor’sreportandtheauditofthefinancialstatementsbyinquiringandgivingtheconstructiverecommendations. TheAuditCommittee concludes that theCompany’s financialstatementsareaccurate,complete,reliableandadequatelydisclosedinformationinaccordancewiththegenerallyacceptedaccountingprinciples.

3. Considerandreviewoftherelatedpartytransactionstoensurethatthereportsareaccurate,sufficient,reasonable,fairandtransparent.TheAuditCommitteeconcludesthat the aforementioned transactions are reasonable, fair and are conducted to maximizetheCompany’sbenefitswhileinformationarecompletelydisclosed.

4. ConsiderandreviewofcorporategovernanceinaccordancewithregulationsissuedbytheSECandSET,lawsandregulationsrelatedtotheCompany’sbusiness.TheAuditCommitteeconcludesthattheCompanyperformsinaccordancewiththeregulationsissuedbytheSECandSET,lawsandregulationsrelatedtothebusinessandreliablegoodcorporategovernancesystem.

Audit Committee Report

346 347346 347

5. Supervisionoftheinternalaudit.TheAuditCommitteereviewedthecharterofGroupAuditDivisionandapprovedtheauditplanaswellasacknowledgedthequarterlyauditreportsandriskmanagement.TheAuditCommitteeconcludesthattheauditscopecoveredcorebusinessfunctions,andtheinternalauditswereindependentandincompliancewithprofessionalstandards.

6. TheAuditCommitteeproposedthatKPMGPhoomchaiAuditCompanyLimitedcontinuestobeentrustedwiththeroleastheExternalAuditorofthegroupcompanyin2011byconsideredtheircapability,knowledgeandindependence.TheremunerationhasbeenproposedtotheOrdinaryGeneralMeetingofShareholdersforapproval.

TheAuditCommitteeconcludesthatthecompany’sfinancialstatementsarepreparedinaccordancewithgenerallyacceptedaccountingprinciplesandcorrectlydiscloserelatedpartytransactions.TheCompanyisconsistentwithlawsandregulationsrelatedtothebusinessandreliablegoodcorporategovernancesystem.Inadditions,theCompany’sinternalcontrolandriskmanagementsystemsareappropriate,adequateandefficient.

(Staporn Kavitanon)Chairman of the Audit Committee

February 23, 2011


TheBoardofDirectorsofBerliJuckerPublicCompanyLimited(the“Company”)realizestheimportanceofriskmanagementtogetherwithsystematicandefficiencyriskcontrolunderdynamiccircumstancesandbusinesscontinualexpansion.Thus,theCompanyhassetoutapolicytoincorporateriskmanagementintoallbusinessprocessestoensurethatsuchriskshavebeenassessedandmanagedtothelevelthatisacceptablebytheCompany.TheRiskManagementCommittee(the“Committee”)isresponsibleforsupportingtheintegratedimplementationofriskmanagementpracticesacrosstheorganization.

For2010,theCommitteeheldfourmeetingstosupervisemajorriskmanagementoftheCompanyandtheBJCGroup(“BJC”),implementeda strategicplan indeveloping the riskmanagementprocesses for continuousefficiencyandencouragedcooperation in riskmanagement throughoutBJCby assessing risks of every significant process andestablishing theBusinessContinuityManagementPolicyandProcedureforplanformulation.SystematicmonitoringprocesseswereinplacetopreventlosseswhileconsistentlypromotingbusinessopportunitiesforBJC.ThefollowingcapturestheessenceofBJC’sachievements.

Strategic risks :FocusingonensuringuniformstrategicplanimplementationwithBJC’svisionandmission,andensuringthattheformulationofstrategiesandobjectivesareinlinewithacceptablerisks.

Operational risks :Focusingoncomprehensivestagesofoperation fromprocesses, investment, information technology,operatingpersonnel,aswellassafetyrisksconcerninglifeandBJC’sproperties.

Financial risks :Focusingonorganizationalmanagementunderaprudentfinancialpolicyandthegivenbudgetforsuitablereturns to ensure that riskmanagement and internal controls are efficient for acceptable risks and thegivendynamiccircumstances.

Compliance risks :Focusingonstrictcompliancewithrulesandrelevantlaws,bothinternalandexternal.

TheCommitteeperforms itsassignedduty thoroughlyandensures that theriskmanagement isadequateandproper inachievingthedefinedgoalsandmanagingacceptablerisksbyoverallrisksreductionoflikelihoodandtheirimpacts,aswellasensuringconsistentimplementationofriskmanagementandsupportingtheriskmanagementcultureforthemaximumbenefitsofBJC,shareholders,andotherstakeholders.

(Mr. Aswin Techajareonvikul)Chairman of the Risk Management Committee

March 9, 2011

Risk Management Committee Report

348 349348 349

Risk Factors

Theglobaleconomyinthesecondhalfyear2010stillcontinuestogrow.However,therateofeconomicgrowthcomparedwiththepreviousquarterofthemajorcountrieswillslowdownfromthefirsthalfoftheyear.SuchsituationsmaybelimitationtothegrowthofThaieconomyinearly2011.Thiscoupledwiththevolatilityofinternationalcapitalmovementsandexchangerates. Themovement of funds intoAsia in the secondhalf year 2010 is still ongoing.Whencombinedwith thecurrentaccountsurplus,thissituationwillcontinuetoexertpressureontheappreciationoftheBaht.However,thereisariskthatcapitalmovementsandexchangeratesfluctuateaccordingtoeconomicsituationandmonetarypolicyinthedirectionkey,inparticular,theUnitedStates.Thisisasituationthatstillcontinuestofollowclosely.Inaddition,theproblemsofpoliticalunrestinThailandandresolvetheconflictofpeopleinthenation,includingpoliticalunrestthatmightoccur,andthedelayoftheimplementationofthemeasurestosolvethepoliticalproblemsofgovernmentriskbeinganobstacletotherecoveryofthetourismsectorandinvestmentinthecountry.

However,BerliJuckerPublicCompanyLimited(the“Company”)isawareofthevariousproblemsandmonitorstheeconomicsituationandpoliticscloselyalongwithpreparingmeasuresandvariousstrategiestomanagerisktoalevelmoreacceptableinordertodobusinessandbesuccessfulasgoals.

Apart from the risksgenerally associatedwith the volatile political situation andglobal economic conditions above, theCompany’ssignificantriskscanbesummarizedasfollows:

1. Risk of Raw Materials Shortages and Rising Prices

TheCompanyandtheBJCGroup(“BJC”)’sproductionwillbeavailableuponasufficientsupplyofrawmaterialsineachproductionperiod.However,therearelimitedresourcesofmajortypesofrawmaterials,suchassilicasand,pulp,andtallowwhichresultedintherisingpricesofsuchrawmaterials,includingtherisingcostoffueloil,LPG,andnaturalgas.RawmaterialshortagesandrisingpricesareaffectingtheproductioncostofBJCsignificantly.

Risk Management

• Trackingthemovementofrawmaterialpricescloselyincludedprovidingbackupmaterialpreparedinadvanceby thecommodityfuturescontractforfueloil,LPG,naturalgas,andpulpinappropriatetime

• Planningprocurementintermsofquantityandpriceappropriatelyinordertoobtainaunitcostreductionincluded administratingthestorageofgoodsandrawmaterialsintheappropriatelevel


• Selectingvendorsasbusinesspartnerstogetherinthelongrunandsourcingnewsupplierscontinuouslytoprevent theriskofrawmaterialsshortagesfromcurrentmajorvendors

• Developingproductionbyusingalternativematerialstoreplaceinordertocopewithshortagesorpricefluctuations

2. Risk of Product Demand from Major Customers for Packaging Products

Uncertaintyindemandforlargevolumecustomers,thesuddenchangewouldaffecttheperformanceoftheCompany.ButthechanceofsucheventhashappenedfromtimetotimeduetomajorcustomershaverelationshipswiththeCompanyasitssubsidiariesinthesameleveloftheparentcompany.

Risk Management

• Monitoringtheneedsofcustomersandcommunicatingcloselytoadaptandprepareforchanges

• Engagingmostly1-3yearscontracts

• Distributingtheproducttovarietygroupsofcustomersandexpandingthecustomerbase

• Alwayslookingforopportunitiesofnewproductsandmarketstospreadtheriskofcustomerconcentration

3. Risk of the Liabilities for Damages Arising from Unsafe Products Act B.E. 2551 (2008)

TheLiabilitiesforDamagesArisingfromUnsafeProductsActB.E.2551(2008)(the“ProductLiabilityLaw”)waseffectiveenforcementduringtheyear2009.Thislawspecifiesthattheentrepreneurisresponsibleforsuchdamagesarisingfromunsafeproducts.Nowadaysconsumersareincreasinglyinterestedinaproductsafety,aswellasgreaterknowledgeandunderstanding.However,theCompanyhasneverhadanysignificantdisputefromaforesaidissuebecauseofhavinggoodrelationship with its customers.

Risk Management

• Diversifyingriskbypurchasingadditionalcoveragefromthe insurancecompany inorder to transfer therisk for damagesarisingfromunsafeproducts

• SpreadingrisktorespectiveownersforproductswhichtheCompanyisdistributor

• Buildingstrongrelationshipswithcustomersandsuppliers,aswellascommunicatingtocreateunderstandingand awarenessonthequalityofproducts,includingopeningchannelspromptedforanyproblemsandcomplaints

350 351350 351

Major Shareholders

1 TCCHoldingCompanyLimited 1,121,704,820 70.631

2 UOBKayHianPrivateLimited 201,944,730 12.716

3 PolMunKongCompanyLimited 47,617,500 2.998

4 SocialSecuritiesOffice(2ports) 21,601,900 1.360

5 AmericanInternationalAssuranceCompany,Limited-Tiger 19,500,050 1.228

6 HSBC(Singapore)NomineePTELTD 12,814,000 0.807

7 AmericanInternationalAssuranceCompany,Limited-Apex 9,000,000 0.567

Total 1,434,183,000 90.307

No. Shareholders No. of shares %

MajorShareholdersasof27August2010

Atpresent,thereisnodirectorholdsanycommonsharesoftheCompanyanditssubsidiaries.


Forthefiscalyearended31December2010and31December2009,theCompanyhassignificantconnectedbusinesstransactionsasshowninFinancialStatementsthedetailsareasbelows.

1 Revenues

1.1 RevenuefromSales

Related parties transactions

Subsidiaries

1. BJCHealthcareCompany Salesofmedicalsandhospital Directsubsidiaries 35,842 97,793 Salesofgoodsandservicesplus Limited supplies margin

2. BerliJuckerSpecialties Salesofchemicalstobe Directsubsidiaries 4,046 19,561 ” Limited compoundedinfoods,drinks andcosmetics

3. BerliJuckerLogistics Customsclearing,warehousing,Directsubsidiaries 1,839 3,548 ” Limited transportationanddistribution service

4. BJCIndustrialandTrading Salesofimagingproducts, Directsubsidiaries 1,706 3,828 ” CompanyLimited stationaryandconstruction supplies

5. RubiaIndustriesLimited Manufacturerofsoap,cosmetics Directsubsidiaries 1,405 435 ” andconfectionary

6. BerliJuckerCelloxLimited Manufactureofpaperproducts Directsubsidiaries 1,273 3,288 ”

7. BerliJuckerFoodsLimited Manufactureofsnackfoods Directsubsidiaries 1,097 2,371 ”

8. ThaiGlassIndustriesPublic Manufactureofglasscontainers Directsubsidiaries 9,609 11,134 ” CompanyLimited

9. CosmaMedicalCompany Salesofmedicalproducts Indirectsubsidiaries 1,043 2,461 ” Limited

10.BJCMarketingCompany Salesofconsumerproducts Directsubsidiaries - 8 ” Limited

11.BJCInternationalCompany Agent Directsubsidiaries 332 158 ” Limited

12.Thai-ScandicSteel Manufactureofgavainized Indirectsubsidiaries 19 1,580 ” CompanyLimited steelstructures

13.T.C.C.Technology Informationservices Directsubsidiaries 10 149 ” CompanyLimited

14.ThaiCorpInternational Agent Subsidiaryofindirectsubsidiaries 19,344 - ” (Vietnam)CompanyLimited

15.ThaiBeverageCanLimited Manufactureofaluminiumcan Directsubsidiaries 8,256 - ”

Value(inthousandBaht)

RelatedCompany Typeofbusiness RelationshipwiththeCompany Fortheyearended Businesstransaction 31-Dec-10 31-Dec-09

352 353352 353

Subsidiaries

16.ThaiMalayaGlass Manufactureofglasscontainers Indirectsubsidiaryofjointly-controlled 254 - Salesofgoodsandservicesplus CompanyLimited entity margin

Total 86,075 146,314

Associates

1. BerliDynaplastCompany Manufactureofrigidplastic Associate,thecompanyholds49% 6,081 2,940 Salesofgoodsandservicesplus Limited containers ofshares margin

2. GaewGrungThaiCompany Tradingcullers,glassbottle, Associatesubsidiaryholds25% 286 - ” Limited plasticsandusesupplies ofshares

Total 6,367 2,940

Other related parties

1. ThaiBeverageRecycle Salesofpackagingandglass Co-director 3,904,166 3,331,609 Salesofgoodsandservicesplus CompanyLimited containers margin

2. BeerthipBrewery(1991) Spiritsdistiller Co-director 482,828 454,337 ” CompanyLimited

3. BeerThai(1991)Public Spiritsdistiller Co-director 361,730 300,781 ” CompanyLimited

4. SuraBangyikhanCompany Spiritsdistiller Co-director 323 1,056 ” Limited

5. CosmosBrewery(Thailand)Beerbrewery Co-director 179,208 118,042 ” CompanyLimited

6. PanInternational(Thailand) Import,wholesalepaperfilter Co-director 347 277 ” CompanyLimited sparepartsandmachinery

7. KankwanCompanyLimited Spiritsdistiller Co-director 1,054 496 ”

8. Kanchanasingkorn Spiritsdistiller Co-director 432 420 ” CompanyLimited

9. LuckchaiLiquorTrading LiquorTrading Co-director 588 456 ” CompanyLimited

10.NateechaiCompanyLimitedSpiritsdistiller Co-director 350 327 ”

11.SangSomCompanyLimitedSpiritsdistiller Co-director 672 721 ”

12.TheparunothaiCompany Spiritsdistiller Co-director 456 468 ” Limited

13.ThanapakdiCompany Spiritsdistiller Co-director 322 333 ” Limited

14.UnitedWineryandDistillery Spiritsdistiller Co-director 5,573 5,304 ” CompanyLimited

15.NorthParkGolfandSport GolfCourseandsportclub Co-director 62 94 ” ClubCompanyLimited service

16.AthimartCompanyLimited Spiritsdistiller Co-director 412 417 ”

17.S.S.KarnsuraCompany Spiritsdistiller Co-director 453 483 ” Limited

18.WattanaPhatTrading Beerandsodadistributor Co-director 244 41 ” CompanyLimited

19.PomthipCompanyLimited Spiritsdistiller Co-director 8,152 652 ”

20.SportsandRecreation Sportservice Co-director 88 45 ” EnterpriseCompanyLimited





21.SouthEastCapitalLimited Vehiclebusiness Co-director 142 912 Salesofgoodsandservicesplus margin

22.SoutheastLifeInsurance Lifeinsurancebusinesses Co-director 2,437 2,216 ” CompanyLimited

23.SoutheastAssurance Assurancebusinesses Co-director 7,226 1,500 ” CompanyLimited

24.SoutheastGroupCompany Carandofficesuppliesleasing Commondirectorsand/orcommon 243 17 ” Limited shareholders

25.T.C.C.HoldingCompany Holdingcompany Majorshareholdersandco-director 594 1,536 ” Limited

26.ThaiBeveragePublic Holdingcompany Co-director 36,506 57,922 ” CompanyLimited

27.TaragoCompanyLimited Agriculture Co-director 1,497 1,489 ”

28.TerragroBio-Tech Biogasmanufacturing Commondirectorsand/orcommon 12 41 ” CompanyLimited businesses shareholders

29.TerragroTechnology Irrigationsystemand Commondirectorsand/orcommon 2 177 ” CompanyLimited biotechnologydevelopment shareholders businesses

30.TerragroFertilizerCompany Salesofbiowastefromwater Commondirectorsand/orcommon 1,191 1,551 ” Limited treatmentsystem shareholders

31.FuengfuanantCompany Spiritsdistiller Co-director 385 467 ” Limited

32.MongkolsamaiCompany Spiritsdistiller Co-director 387 375 ” Limited

33.SimathurakijCompany Landdevelopment Co-director 245 420 ” Limited

34.BangnaPattanakit Warehousebusinesses Commondirectorsand/orcommon 195 103 ” CompanyLimited shareholders

35.Chor.Chana-AnanPanich Propertydevelopmenti.e.mall,Commondirectorsand/orcommon 390 509 ” CompanyLimited market,townhome,carparking shareholders lot for rent

36.IndaraInsurancePublic Assurancebusinesses Commondirectorsand/orcommon 58 5 ” CompanyLimited shareholders

37.LanChangDevelopment Propertydevelopmentand Commondirectorsand/orcommon 170 195 ” CompanyLimited management shareholders

38.LifestyleFoodcourts FoodcenterandIntellectral Commondirectorsand/orcommon 292 110 ” CompanyLimited Property(IP)services shareholders

39.N.C.C.Management& Spacerentalforexibition Commondirectorsand/orcommon 32 55 ” DevelopmentCompany businesses shareholders Limited

40.RedBullDistillery(1988) Spiritsdistillerandsales Commondirectorsand/orcommon 731 330 ” CompanyLimited shareholders

41.SiamFoodProductsPublic Manufacture,export,saleof Commondirectorsand/orcommon 7,291 1,775 ” CompanyLimited secondaryprocessed shareholders agriculturalproducts

42.TheSuphanburiSugar Salesandexportsugar Commondirectorsand/orcommon 478 145 ” IndustryCompanyLimited shareholders



354 355354 355


43.TCCCapitalLandLimited Propertydevelopment Commondirectorsand/orcommon 6,814 4,834 Salesofgoodsandservicesplus shareholders margin

44.T.C.C.CommercialPropertyPropertymanagementand Commondirectorsand/orcommon 3,942 2,184 ” ManagementCompany salesoffood&beverage shareholders Limited

45.AnantasiriPattana Propertymanagement Commondirectorsand/orcommon 78 52 ” CompanyLimited shareholders

46.TCCLandCompanyLimitedMortgage,pawn,saleof Commondirectorsand/orcommon 10,333 7,003 ” consignmentandother shareholders business transaction related toimmovableassets

47.TCCLandCommercial Advertisermentbusinesses Commondirectorsand/orcommon 671 666 ” CompanyLimited shareholders

48.TCCLandDevelopment Propertymanagementand Commondirectorsand/orcommon 1,149 722 ” CompanyLimited development shareholders

49.TCCLandRetelCompany Hotel,restaurant,bar,nightclub, Commondirectorsand/orcommon 1,722 1,848 ” Limited bowlingbusinesses shareholders

50.TCCHotelGroupCompany Investmentinstake,interest, Commondirectorsand/orcommon 3,291 2,667 ” Limited bond shareholders

51.TCCHotelMangement Propertymangementand Commondirectorsand/orcommon 63 114 ” CompanyLimited development shareholders

52.T.C.C.HotelCollection Hotelandrestaurant Co-director 112 110 ” CompanyLimited

53.TCCPropertyDevelopmentPropertymanagementand Commondirectorsand/orcommon 411 2,176 ” CompanyLimited development shareholders

54.TCCValueHotelsCompanyHotelandrestaurant Commondirectorsand/orcommon - 307 ” Limited shareholders

55.ThippattanaArcade Spacerentalservices Commondirectorsand/orcommon 4,598 1,421 ” CompanyLimited shareholders

56.CristallaCompanyLimited Sugarcaneplanting Commondirectorsand/orcommon 727 974 ” shareholders

57.CristallaEngineering Salesofmachines,engines, Commondirectorsand/orcommon 141 570 ” CompanyLimited mechanictools,dynamos shareholders

58.ThaiAlcoholPublic AlcoholManufacture Commondirectorsand/orcommon 402 504 ” CompanyLimited shareholders

59.NumKijjakarnCompany Salesandwholesalesofspirits Commondirectorsand/orcommon 727 1,067 ” Limited shareholders

60.PermkhaCommercial Salesandwholesalesofsugar Commondirectorsand/orcommon 110 229 ” CompanyLimited(Formerly shareholders name:DhipayaSugar (1999)CompanyLimited)

61.NumThurakijCompany Salesandwholesalesofspirits Commondirectorsand/orcommon 521 681 ” Limited shareholders

62.NumNakornCompany Wholesalesofspirits Commondirectorsand/orcommon 679 692 ” Limited shareholders

63.NumPalangCompany Salesandwholesalesofspirits Commondirectorsand/orcommon 597 811 ” Limited shareholders





64.NumMuangCompany Salesandwholesalesofspirits Commondirectorsand/orCommon 727 811 Salesofgoodsandservicesplus Limited shareholders margin

65.NumYukCompanyLimited Salesandwholesalesofspirits Commondirectorsand/orCommon 662 644 ” shareholders

66.PlantheonCompanyLimited Investmentinrelatedagricultural Commondirectorsand/orCommon 5,997 6,688 ” industrial businesses shareholders

67.SiamRealtyCompany Propertymanagement Commondirectorsand/orCommon 310 206 ” Limited shareholders

68.SuraPisetThipharat Salesofspirits Commondirectorsand/orCommon 420 419 ” CompanyLimited shareholders

69.TCCLandIndustrialand Projectmanagementand Commondirectorsand/orCommon 2 90 ” LogisticsCompanyLimited projectconsultant shareholders

70.TCCCLWirelessCompany Propertydevelopmentforrent Commondirectorsand/orCommon - (3) ” Limited andforsale shareholders

71.UniventuresPublic Miningandtradingzincoxide Commondirectorsand/orCommon 2,793 3,207 ” CompanyLimited shareholders

72.ThaiAgroProducts Processingagricultural Commondirectorsand/orCommon 1,206 836 ” CompanyLimited products shareholders

73.TheUttaraditSugerIndustryManufacture,sale,exportsuger Commondirectorsand/orCommon 4,599 355 ” CompanyLimited shareholders

74.PaksongCapitalCompany Holdingcompany Commondirectorsand/orCommon 183 295 ” Limited shareholders

75.SiriwanaCompanyLimited Propertydevelopment Commondirectorsand/orCommon 111 23 ” shareholders

76.TCCLandInternational Propertydevelopment Commondirectorsand/orCommon - 1 ” (Thailand)CompanyLimited shareholders

77.GoldenWealthCompany Projectconsultantandproject Commondirectorsand/orCommon 1,324 2,068 ” Limited management shareholders

78.OishiGroupPublic Japanessrestaurantbusinesses Commondirectorsand/orCommon 280 - ” CompanyLimited shareholders

79.OishiTradingCompany Salesandproduceinstant Commondirectorsand/orCommon 21,084 5,910 ” Limited japanesefoods shareholders

80.ServiceAllianceCompany Parkingspacemanagement Commondirectorsand/orCommon 424 - ” Limited shareholders

81.TCCLandLogistics Propertydevelopment Commondirectorsand/orCommon 2 - ” CompanyLimited shareholders

82.TCCandIndustrial Propertydevelopment Commondirectorsand/orCommon 2 - ” CompanyLimited shareholders

83.TCCLNarathiwadCompanyPropertydevelopment Commondirectorsand/orCommon 8 - ” Limited shareholders

84.TCCLNorthParkCompany Propertydevelopment Commondirectorsand/orCommon 10 - ” Limited shareholders

85.TCCLuxuryHotelsand Hotelandrestaurant Commondirectorsand/orCommon 6 - ” ResortsCompanyLimited shareholders

86.LasticaCompanyLimited Tradingofrawrubbermaterials Commondirectorsand/orCommon 2 - ” shareholders



356 357356 357


87.NormCompanyLimited Interiordesign Commondirectorsand/orCommon 1 - Salesofgoodsandservicesplus shareholders margin

88.AtMediafrontCompany Advertisementandpublication Commondirectorsand/orCommon 73 - ” Limited servicesbusinesses shareholders

89.Ag-WellCompanyLimited Tradingoffertilizer,pesticde, Commondirectorsand/orCommon 10 24 ” herbicide shareholders

90.TheGrandLuangPrabang Assetsmanagementservice Commondirectorsand/orCommon 3 16 ” CompanyLimited businesses shareholders

91.WrangyerBeverage(2008) Salesanddistributionof Co-director 3,219 1,293 ” CompanyLimited herbicideandspirits

92.DhanasindhiCompany Buildingsconstruction Commondirectorsand/orCommon 31,043 15,434 ” Limited shareholders

93.NumrungrodCompany Wholesaleofwhiskyandalcohol Commondirectorsand/orCommon 681 340 ” Limited consultantservice shareholders

94.NumThipCompanyLimited Salesofplywood Commondirectorsand/orCommon 597 298 ” shareholders

95.DhosPaakCompanyLimitedAdvertisementandpublic Commondirectorsand/orCommon 74 77 ” relations shareholders

96.BaanboungVetchakij Clinicalbusinesses Commondirectorsand/orCommon 8,106 3,892 ” CompanyLimited shareholders

97.N.C.C.ExhibitionOrganizer Buildingmanagementand Commondirectorsand/orCommon - 120 ” CompanyLimited projectmanagement shareholders

98.ThaiBeverageMarketing Salesandimportedofspirits Co-director 10 1 ” CompanyLimited

99.Natura(2008)Company Biodieselbusinesses Commondirectorsand/orCommon 1 - ” Limited shareholders

100.EaslernSeaboard Industrialzonemanagement Co-director 52 - ” IndustrialEstate(Rayong)businesses CompanyLimited

101.ThaiBeverageLogistics Logisticservicesprovider Co-director 28,562 - ” CompanyLimited

102.ThaiDrinkCompany Beer,alcoholandsodadrinks Co-director 25 - ” Limited manufacturer

103.SukhothaiPDCompany Realestatedeveloper Co-director 162 - ” Limited

104.PlantheonTrading Sugarproducttrading Co-director 253 - ” CompanyLimited

105.KalaeNightBazaar Rentalspaceproviderand Co-director 1,103 - ” CompanyLimited management

106.Food&FunCompany Foodsandbeverage Co-director 752 - ” Limited

107.SurasateCompanyLimited Realestateforrent Co-director 267 - ”

108.PhanthamaitreeCompany Realestateforrent Co-director 531 - ” Limited

109.TawannaNightBazaar Rentalspaceproviderand Co-director 1,196 - ” CompanyLimited management





110.BangnaGlassCompany Glassbottlemanufacturer& Commondirectorsand/orCommon 276 - Salesofgoodsandservicesplus Limited distributor shareholders margin

111.PolMunKongCompany Businesstraining&advisory Shareholders 116 - ” Limited services

112.T.C.C.ServiceApartment Residentialrealestate Commondirectorsand/orCommon 302 - ” CompanyLimited management shareholders

113.TCCCLRachatewi Realestatedeveloperforsales Commondirectorsand/orCommon 5 - ” CompanyLimited &rent shareholders

114.TCCCLAsokeCompany Realestatedeveloperforsales Commondirectorsand/orCommon 112 - ” Limited &rent shareholders

115.TCCCLSukhumvit24 Realestatedeveloperforsales Commondirectorsand/orCommon 8 - ” CompanyLimited &rent shareholders

116.TCCCLSenaCompany Realestatedeveloperforsales Commondirectorsand/orCommon 9 - ” Limited &rent shareholders

117.SukhothaiBioenergy Power&electricityplant Co-director 48 - ” CompanyLimited

118.WorldBookandMedia Foodcourtsandrentalspace Commondirectorsand/orCommon 359 - ” CompanyLimited provider shareholders

119.S&SSukumvitCompany Realestatedeveloperforsales Commondirectorsand/orCommon 2 - ” Limited &rent shareholders

120.AssetManagement Realestatedeveloperforsales Commondirectorsand/orCommon 223 - ” AdvisoryCompanyLimited &rent shareholders

121.ThaiBeverageEnergy Productionandsaleoffertilizer Commondirectorsand/orCommon 124 - ” CompanyLimited andbiogas shareholders

122.TCCPD11Company Realestatedeveloperforsales Commondirectorsand/orCommon 101 - ” Limited &rent shareholders

Total 5,163,610 4,360,886



358 359358 359

Subsidiaries

1. BJCIndustrialandTrading Salesofimagingproduct, Directsubsidiaries - 6 Thecompanyrentedspacefor

CompanyLimited stationeryandconstruction subsidiarycompaniesand

supplies chargedforutiltitesaccordingto

contractuallyagreedpricewhich

wasclosetomarketprice.The

contract was on annual basis.

2. BerliJuckerFoodsLimited Manufactureofsnackfoods Directsubsidiaries 164 417 ”

3. BerliJuckerLogistics Customsclearing,warehousing, Directsubsidiaries 56,028 55,962 ”

Limited transportationanddistribution

service

4. BerliJuckerSpecialties Salesofchemicals Directsubsidiaries - 12 ”

Limited

5. BJCHealthcareCompany Salesofmedicalsandhospital Directsubsidiaries - (7) ”

Limited supplies

6. BerliJuckerCelloxLimited Manufactureofpaperproducts Directsubsidiaries 169 276 ”

7. RubiaIndustriesLimited Manufactureofsoap,cosmetics Directsubsidiaries 462 215 ”

and confectionery

8. ThaiGlassIndustriesPublicManufactureofglasscontainers Directsubsidiaries 3,339 281 ”

CompanyLimited

9. CosmaMedicalCompany Salesofmedicalproducts Indirectsubsidiaries 196 48 ”

Limited

10.Thai-ScandicSteel Manufactureofgalvanisedsteel Indirectsubsidiaries 23 3,432 ”

CompanyLimited structures

11.T.C.C.Technology Informationservices Directsubsidiaries 64 30 ”

CompanyLimited

12.Marble&StonesLimited Dormant Indirectsubsidiaries 6 15 ”

13.ThaiBeverageCanLimited Manufactureofaluminiumcan Directsubsidiaries 2 - ”

14.ThaiCorpInternational Agent Subsidiaryofindirectsubsidiaries 10 - ”

(Vietnam)CompanyLimited

15.ThaiMalayaGlass Manufactureofglasscontainers Indirectsubsidiaryofjointly-controlled 14 - ”

CompanyLimited entity

Total 60,477 60,687



1.2 Revenue from rental and service


Associates

1. BerliAsiaticSodaCompany ImporterandDistributorof Associate,theCompanyholds50% 560 591 Thecompanyrentedspacefor

Limited sodaash ofshares associatedcompariesand

chargedforutilitiesaccordingto

contractuallyagreedpricewhich



2. BerliDynaplastCompany Manufacturerofrigidplastic Associate,theCompanyholds49% 1,531 1,266 ”

Limited containers ofshares

3. GaewGrungThaiCompany Tradingcullers,glassbottle, Associatesubsidiaryholds25% 13 - ”

Limited plasticsandusesupplies ofshares

Total 2,104 1,857


1. ThaiBeverageRecycle Salesofpackagingandglass Co-director - 760 Thesubsidiarycompanyrented

CompanyLimited containers spacetotherelatedpartiesand

chargedrentalfeeaccordingto

the contract in which the price



2. SoutheastAssurance Insuranceservices Co-director 8 - ”

CompanyLimited

3. ThaiBeveragePublic Investmentinothercompany Co-director 1 - ”

CompanyLimited

Total 9 760



Subsidiaries

1. BJCIndustrialandTrading Salesofimagingproduct, Directsubisdiaries 1,804 3,312 Thecompanycharged CompanyLimited stationeryandconstruction managementfeeandother supplies expensessuchasHuman ResourceManagement,Financial andAccountingService,Legal Service,InformationSystem Servicetosubsidiarycompanies from allocated actual cost.

2. BerliJuckerFoodsLimited Manufacturerofsnackfoods Directsubisdiaries 12,755 6,697 ”

3. BerliJuckerLogistics Customsclearing,warehousing, Directsubisdiaries 15,837 16,403 ” Limited transportationanddistribution service

4. BJCMarketingCompany Salesofconsumerproducts Directsubisdiaries - 1,753 ” Limited



1.3 Income from allocation of administrative expense

360 361360 361

Subsidiaries

5. BerliJuckerSpecialties Salesofchemicals Directsubisdiaries 1,329 3,018 Thecompanycharged Limited managementfeeandother expensessuchasHuman ResourceManagement,Financial andAccountingService,Legal Service,InformationSystem Servicetosubsidiarycompanies from allocated actual cost.

6. BJCHealthcareCompany Salesofmedicalsandhospital Directsubisdiaries 6,980 7,209 ” Limited supplies

7. BerliJuckerCelloxLimited Manufacturerofpaperprodects Directsubisdiaries 11,924 4,908 ”

8. RubiaIndustriesLimited Manufacturerofsoap,cosmeticsDirectsubisdiaries 9,762 12,004 ” and confectionery

9. ThaiGlassIndustriesPublicManufacturerofglasscontainer Directsubisdiaries 28,841 19,821 ” CompanyLimited

10.Thai-ScandicSteel Manufacturerofgalvanised Indirectsubsidiaries 8,322 11,448 ” CompanyLimited steelstructures

11.CosmaMedicalCompany Salesofmedicalproducts Indirectsubsidiaries 9,990 4,021 ” Limited

12.JacyFoodsSdnBhd Manufacturerofsnackfoods Indirectsubsidiaries 811 781 ”

13.MontanaCompanyLimited Salesofcosmeticsand Directsubisdiaries 486 440 ” machinery

14.T.C.C.Technology Informationservices Directsubisdiaries 599 27 ” CompanyLimited


16.ThaiMalayaGlass Manufactureofglasscontainers Indirectsubsidiaryofjointly-controlled 238 - ” CompanyLimited entity

Total 110,032 91,842

Associates

1. BerliAsiaticSodaCompanyImporteranddistributorof Jointventrue,thecompanyholds50% 47 66 Thecompanycharged Limted sodaash ofshares managementfeeandother expensessuchasHuman ResourceManagement,Financial andAccountingService,Legal Service,InformationSystem Servicetoassociatedcompanies from allocated actual cost.

2. BJCMarineResources OperatedinleaseprawnpondsJointventure,thecompanyholds50% 90 90 ” DevelopmentCompany andequipment ofshares Limited

3. BerliDynaplastCompany Manufacturerofrigidplastic Jointventure,thecompanyholds49% 267 - ” Limited container ofshare

Total 404 156




Subsidiaries

1. BJCIndustrialandTrading Salesofimagingproduct, Directsubisdiaries - 217 Thecompanychargedintereston CompanyLimited stationeryandconstruction loantosubsidiarycompaniesat supplies theborrowingcostandmarketrates.

2. BerliJuckerFoodsLimited Manufacturerofsnackfoods Directsubisdiaries 8,467 9,118 ”

3. BerliJuckerSpecialties Salesofchemicals Directsubisdiaries 2,039 3,878 ” Limited

4. BerliJuckerCelloxLimited Manufacturerofpaperprodects Directsubisdiaries 36,579 38,440 ”

5. ThaiGlassIndustriesPublicManufacturerofglasscontainer Directsubisdiaries 65,858 67,750 ” CompanyLimited

6. RubiaIndustriesLimited Manufacturerofsoap,cosmeticsDirectsubisdiaries 3,900 4,599 ” and confectionery

7. Thai-ScandicSteel Manufactureofgavainizedsteel Indirectsubsidiaries 38 40 ” CompanyLimited structures

8. BerliJuckerLogistics Customsclearing,warehousing, Directsubisdiaries 84 6 ” Limited transportationanddistribution service

9. BJCInternationalCompanyAgent Directsubisdiaries 92 34 ” Limited(HongKong)

10.T.C.C.Technology Informationservice Directsubisdiaries 234 - ” CompanyLimited

Total 117,291 124,082



1.4 Interest Income


1. BallCorporation Manufactureranddistribution Majorshareholderofsubsidiary’s 9,027 13,133 Subsidiarycompanieswere packaging shareholder receivedtradediscountfrom purchasingfinishedgoodsand servicesfromotherrelatedparties.

2. BaanboungVetchakij Clinicalbusinesses Commondirectorsand/orcommon 10 11 Subsidiarycompanieswere CompanyLimited shareholders receivedinterestincome,gainon disposalsofequipmentandgain onexchangeformotherrelated parties.

3. TerragroFertilizerCompanyWholesaleofbiowastefrom Commondirectorsand/orcommon (3) 3 ” Limited watertreatmentsystem shareholders

4. ThaiAgroProducts ProcessedagriculturalproductsCommondirectorsand/orcommon - 43 ” CompanyLimited andrelatedbusinesses shareholders

5. IndaraInsurancePublic Insurancebusinesses Commondirectorsand/orcommon 6 - ” CompanyLimited shareholders

6. TCCLandCompanyLimited Mortgage,pawn,saleof Commondirectorsand/orcommon 11 11 ” consignmentandotherbusinessshareholders transactionrelatedtoimmovable assets



1.5 Other income

362 363362 363


7. SoutheastAssurance Insurancebusinesses Co-director 49 - Subsidiarycompanieswere CompanyLimited receivedinterestincome,gainon disposalsofequipmentandgain onexchangeformotherrelated parties.

8. T.C.C.HoldingCompany Holdingcompany Majorshareholdersandco-directors 18 - ” Limited

9. TCCCapitalLandLimited Realestatedeveloperforsales Commondirectorsand/orcommon 5 - ” &rent shareholders

Total 9,123 13,201



Subsidiaries

1. BJCIndustrialandTrading Salesofimagingproducts. Directsubsidiaries 3,041 21,454 Purchaseofgoodsandreceiving CompanyLimited Stationeryandconstruction servicewithmarketpricenetof supplies markupmarginoftheCompany.

2. BerliJuckerLogistics Customsclearing,warehousing, Directsubisdiaries 299,682 250,782 ” Limited transportationanddistribution service

3. RubiaIndustriesLimited Manufacturerofsoap,cosmetics Directsubisdiaries 739,104 635,320 ” and confectionery

4. BJCMarketingCompany Salesofconsumerproducts Directsubsidiaries 84 321 ” Limited

5. BerliJuckerSpecialties Salesofchemicals Directsubsidiaries 470,319 782,058 ” Limted

6. BJCHealthcareCompany Salesofmedicalsandhospital Directsubsidiaries 160,873 418,304 ” Limited supplies

7. BerliJuckerCellox ManufacturerofpaperProducts Directsubsidiaries 1,877,779 1,802,351 ” CompanyLimited

8. ThaiGlassIndustriesPublicManufacturerofglasscontainer Directsubsidiaries 6,856,065 5,979,631 Thecompanypurchasedglass CompanyLimited containersfromsubsidiary companybasedonmarketprice netofmarkupmarginwhichwere mutualiyagreed.

9. BerliJuckerFoodsLimited Manufacturerofsnackfoods Directsubsidiaries 1,802,344 1,693,865 Purchaseofgoodsandreceiving serviceswithmarketpricenetof markupmarginoftheCompany.

10.CosmaMedicalCompany Salesofmedicalproducts Indirectsubsidiaries 2,998 1,960 ” Limited



2 Expenditures

2.1 Purchase of goods and services


Subsidiaries

11.T.C.C.Technology Informationservices Directsubsidiaries 83,465 30,840 Thecompanyhiredsubsidiary CompanyLimited companyforconsultingand developinginformationsystem. The price is based on cost plus margin.

12.ThaiMalayaGlass Manufacturerofglasscontainer Indirectsubsidiariesofjointly-controlled 8,209 - Thecompanypurchasedglass CompanyLimited entity containersfromsubsidiary companybasedonmarketprice netofmarkupmarginwhichwere mutuallyagreed.

13.ThaiBeverageCan Manufacturerofaluminumcan Directsubsidiaries 7,797 - Purchaseofgoodsandreceiving CompanyLimited serviceswithmarketpricenetof markupmarginoftheCompany.

Total 12,311,760 11,616,886

Associates

1. BerliDynaplastCompany Manufacturerofrigidplastic Associate,theCompanyholds49% 28,218 20,602 Purchaseofgoodsandreceiving Limited containers ofshares serviceswithmarketpricenetof markupmarginoftheCompany.

2. BerliAsiaticSodaCompanyImporteranddistributorof Associate,theCompanyholds50% 431,609 552,303 ” Limited sodaash ofshares

3. GaewGrungThaiCompany Tradingcullers,glassbottle, Associatesubsidiaryholds25% 579,704 263,775 ” Limited plasticsandusesupplies ofshares

Total 1,039,531 836,680


1. PisetkijCompanyLimited Tradingcullets,glassbottle, Co-director 286,739 268,709 Purchaseofgoodsandreceiving plasticsandusedsupplies serviceswithmarketpricenetof markupmarginoftheCompany.

2. CosmosBrewery(Thailand)Beerbrewery Co-director - 477 ” CompanyLimited

3. BangnaGlassCompany Manufacturingandsalesof Commondirectorsand/orcommon - 188 ” Limited glassbottle shareholders

4. ThaiBeverageRecycle Salesofpackagingandglass Co-director 1,656 50 ” CompanyLimited containers

5. T.C.C.HotelCollection Hotelandrestaurant Co-director 110 413 ” CompanyLimited

6. SouthEastCapital Vehiclesbusinesses Co-director 6,283 5,493 ” CompanyLimited

7. SoutheastAssurance Insurancebusinesses Co-director 16,729 13,729 ” CompanyLimited

8. SoutheastLifeInsurance Insurancebusinesses Co-director 3,794 - ” CompanyLimited

Total 315,311 289,059



364 365364 365

2.2 Rental and Service Expenses

Subsidiaries

1. RubiaIndustriesCompany Manufacturerofsoap,cosmetics Directsubsidiaries 929 929 Thesubsidiarycompanycharged Limited andconfectionery rentalfeeaccordingtocontract which was based on fair price andclosetomarketpriceand the condition of space. The contract was on annual basis.

Total 929 929


1. TaragoCompanyLimited Agriculture Co-director 903 314 Theotherrelatedpartiescompany chargedlandrentaltosubsidiary company based on contractually fair price.

2. Chor.Chana-AnanPanich Propertydevelopmenti.e.mall,Commondirectorsand/orcommon 5,281 12,006 Theotherrelatedpartiescompany CompanyLimited market,townhome,carparking shareholders chargedofficerentaltosubsidiary lot for rent. company based on contractually fair price.

3. SouthEastCapitalCompanyVehiclesbusinesses Co-director 23,613 1,012 Theotherrelatedpartiescompany Limited chargedvehiclerentalto subsidiary company based on contractually fair price.

4. SoutheastAssurance Insurancebusinesses Co-director 8,279 113 Theotherrelatedpartiescompany CompanyLimited chargedservicefeesandother expensesasincludingthe property and information technologytosubsidiarycompany

5. BeerthipBrewery(1991) Spiritsdistillery Co-director 2 - ” CompanyLimited

6. OishiGroupPublic Japanessrestaurantbusinesses Commondirectorsand/orcommon 28 - ” CompanyLimited shareholders

7. ThaiBeveragePublic Investmentinothercompany Co-director 3,171 - ” CompanyLimited

8. ThippattanaArcade Rentalspaceprovider& Commondirectorsand/orcommon 17 - ” CompanyLimited management shareholders

9. ThaiDrinkCompany Beer,alcoholandsodadrinks Co-director 221 - ” Limited manufacturer

10.IndaraInsurancePublic Insurancebusinesses Commondirectorsand/orcommon 4 - ” CompanyLimited shareholders

11.TCCValueHotelsCompanyHotelandrestaurant Commondirectorsand/orcommon 4 - ” Limited shareholders

12.SoutheastLifeInsurance Insurancebusinesses Co-director 2,096 74 ” CompanyLimited

13.PomthipCompanyLimted Spiritsdistillery Co-director 7 - ”

14.T.C.C.HotelCollection Hotelandrestaurant Co-director 72 - ” CompanyLimited

15.T.C.C.CommercialPropertyOfficespaceprovider& Commondirectorsand/orcommon 41 - ” ManagementCompany management shareholders Limted

Total 43,739 13,519




2.3 Interest Expenses

Subsidiaries

1. MontanaCompanyLimted Salesofcosmeticsand Directsubsidiaries 271 202 Thesubsidiarycompanylentto

machinery thecompanyandchargedinterest

attheborrowingcostandmarket

rate.

2. RubiaIndustriesCompany Manufacturerofsoap,cosmetics Directsubsidiaries 376 22 ”

Limited andconfectionery

3. BerliJuckerLogistics Customsclearing,warehousing, Directsubsidiaries 154 245 ”

CompanyLimited transportationanddistribution

service

4. BJCMarketingCompany Salesofconsumerproducts Directsubsidiaries 665 854 ”

Limited

5. Thai-ScandicSteel Manufacturerofgalvanised Indirectsubsidiaries 699 693 ”

CompanyLimted steelstructures

6. BerliJuckerSpecialties Salesofchemicals Directsubsidiaries 608 278 ”

Limited

7. BerliJuckerFoods Manufacturerofsnackfoods Directsubsidiaries 37 1 ”

CompanyLimited

8. BJCHealthcareCompany Salesofmedicalsandhospital Directsubsidiaries 2,347 1,996 ”

Limited supplies

9. BJCIndustrialandTrading Salesofimagingproducts, Directsubsidiaries 1,705 1,059 ”

CompanyLimited stationeryandconstruction

supplies

10.ThaiFlourspar&Minerals Dormant Directsubsidiaries 47 78 ”

CompanyLimited

11.BJCInternationalCompanyAgent Directsubsidiaries 57 127 ”

Limited

12.BerliJuckerCellox ManufacturerofpaperProducts Directsubsidiaries 43 - ”

CompanyLimited

Total 7,009 5,555



2.4 Purchase sparepart and equipment


1. BallCorporation Manufactureranddistribution Majorshareholderofsubsidiary’s 5,026 15,141 Thesubsidiarycompany

packaging shareholder purchasedsparepartand

equipmentfromotherrelated

parties

Total 5,026 15,141



366 367366 367



2.5 Rayalty fee


1. BallCorporation Manufactureranddistribution Majorshareholderofsubsidiary’s 23,578 24,592 Thesubsidiarycompanypaid

packaging shareholder royaltyfeetootherrelatedparties

for the technical license

Total 23,578 24,592



3 Trade Accounts Receivable

Subsidiaries

1. BJCHealthcareCompany Salesofmedicalsandhospital Directsubsidiaries 294 2,377 TradeReceivableforsale Limited supplies transactionin1.1

2. ThaiGlassIndustriesPublic Manufactureofglasscontainer Directsubsidiaries 6,430 5,336 ” CompanyLimited

3. BerliJuckerSpeciallities Saleofchemicals Directsubsidiaries 91 3,186 ” Limited

4. RubiaIndustriesLimited Manfactureofsoap,cosmetics Directsubsidiaries 213 74 ” and confectionery

5. BerlliJuckerFoodsLimited Salesofsnackfoods Directsubsidiaries 180 17 ”

6. CosmaMedicalCompany Salesofmedicalproducts Indirectsubsidiaries 578 1,547 ” Limited

7. BerliJuckerCelloxLimited Manufactureofpaperproducts Directsubsidiaries 106 127 ”

8. BJCIndustrialandTrading Salesofimagingproducts, Directsubsidiaries 1,416 137 ” CompanyLimited stationeryandconstruction supplies

9. BerliJuckerLogistics Customsclearing,warehousing, Directsubsidiaries 112 375 ” Limited transportationanddistribution service

10.BJCInternationalCompanyAgent Directsubsidiaries 29 - ” Limited

11.BJCInternationalCompany Agent Directsubsidiaries 532 162 ” Limited(Hongkong)

12.T.C.C.Technology Informationservices Directsubsidiaries 5 160 ” Companylimited

13.Thai-ScandicSteel Manufactureofgalvanisedsteel Indirectsubsidiaries - 1,691 ” CompanyLimited structures

14.ThaiCorpInternational Agent Subsidiaryofindirectsubsidiaries 16,845 - ” (Vietnam)CompanyLimited

15.ThaiMalayaGlass Manufactureofglasscontainers Indirectsubsidiaryofjointly-controlled 434 - ” CompanyLimited entity

Total 27,265 15,189


Associates

1. BerliDynaplastCompany Manufactureofrigidplastic Associate,thecompanyhold49% 3,302 1,073 TradeReceivableforsale Limited containers ofshares transactionin1.1

2. GaewGrungThaiCompanyTradingcullers,glassbottle, Associatesubsidiaryholds25% 825 - ” Limited plasticsandusesupplies ofshares

Total 4,127 1,073


1. Ag-wellCompanyLimited Tradingoffertilizer,pesticide, Commondirectorsand/orcommon - 4 TradeReceivableforsale herbicide shareholders transaction in 1.1

2. AnantasiriPatanaCompany Propertymanagementand Commondirectorsand/orcommon 7 14 ” Limited propertydevelopment shareholders

3. AthimartCompanyLimited Spiritsdistiller Co-director 33 69 ”

4. BangnaPattanakit Warehousebusinesses Commondirectorsand/orcommon 31 44 ” CompanyLimited shareholders

5. BeerThai(1991)Limited Spiritsdistiller Co-director 36,007 29,759 ”

6. BeerthipBrewery(1991) Spiritsdistiller Co-director 34,093 31,497 ” PublicCompanyLimited

7. Chor.Chana-AnanPanich Propertydevelopmenti.e.mall,Commondirectorsand/orcommon - 221 ” CompanyLimited mechanictools,vehicles, shareholders dynamos

8. CosmosBrewery(Thailand)Beerandsodadrinks Co-director 14,627 23,610 ” CompanyLimited manufacturer

9. CristallaEngineering Saleofmachines,engines, Commondirectorsand/orcommon 72 48 ” CompanyLimited mechanictools,vehicles, shareholders dynmos

10.CristallaCompanyLimited Sugarcaneplanting Commondirectorsand/orcommon 7 328 ” shareholders

11.DhanasindhiCompany Propertyconstruction Commondirectorsand/orcommon 7,003 6,403 ” Limited shareholders

12.PermkhaCommercialCo., Salesandwholesaleofsugar Commondirectorsand/orcommon 62 35 ” Ltd.(Formerly:Dhipaya shareholders Sugar(1999)Co.,Ltd.)

13.FuengfuanantCompany Spiritsdistiller Co-director 33 61 ” Limited

14.GoldenWealthCompany Consultantservice Commondirectorsand/orcommon 320 1,000 ” limited shareholders

15.KankwanCompanyLimited Spiritsdistiller Co-director 106 42 ”

16.Kanchanasingkorn Spiritsdistiller Co-director 75 38 ” CompanyLimited

17.LanChangDevelopment Propertydevelopmentand Commondirectorsand/orcommon 78 37 ” CompanyLimited propertymanagement shareholders

18.LifestyleFoodcourts Foodcourtbusinessesand Commondirectorsand/orcommon 44 45 ” CompanyLimited intellectualProperty(IP)rental shareholders service

19.LukchaiLiquorTrading Tradingofwhisky Co-director 80 39 ” CompanyLimited



368 369368 369


20.MongkolsamaiCompany Spiritsdistiller Co-director 33 33 TradeReceivableforsale Limited transactionin1.1

21.NateechaiCompanyLimitedSpiritsdistiller Co-director 26 26 ”

22.Natural(2008)Company Biodieselrelatedbusinesses Commondirectorsand/orcommon 1 - ” Limited shareholders

23.NorthParkGoft&Sport Goftcourseandsportsservice Co-director 25 15 ” CreationCompanyLimited

24.PaksongCapitalCompany Holdingcompany Commondirectorsand/orcommon 28 35 ” Limited shareholders

25.PanInternational(Thailand) Import,wholesaleofpaperfitter Co-director 121 80 ” CompanyLimited spairparts,manchines

26.PlantheonCompanyLimitedAgriculturalbusiness Commondirectorsand/orcommon 1,251 1,074 ” shareholders

27.PomthipCompanyLimited Spiritsdistiller Co-director 26 - ”

28.RedBullDistillery(1988) Whiskydistillery Commondirectorsand/orcommon 450 29 ” CompanyLimited shareholders

29.S.S.KarnsuraCompany Spiritsdistiller Co-director 37 63 ” Limited

30.SangSomCompanyLimitedSpiritsdistiller Co-director 67 59 ”

31.SiamFoodProductsPublic ProcessedagriculturalproductsCommondirectorsand/orcommon 3,810 573 ” CompanyLimited andrelatedbusinesses shareholders

32.SiamRealtyCompany Propertymanagementand Commondirectorsand/orcommon 75 123 ” Limited servicebusinesses shareholders

33.SimathurakijCompany Landmanagement Co-director 37 37 ” Limited

34.SouthEastCapitalLimited Vehiclesbusinesses Co-director - 1 ”

35.SoutheastAssurance Insurancebusinesses Co-director 2,328 38 ” CompanyLimited

36.SoutheastGroupCompany Providecreditforcarandoffice Commondirectorsand/orcommon 46 1 ” Limited suppliesleasingbusinesses shareholders

37.SoutheastLifeInsurance Lifeinsurancebusinesses Co-director 277 52 ” CompanyLimited

38.SportsandRecreation Sportsservice Co-director 9 - ” EnterpriseCompanyLimited

39.SuraBangyikanCompany Spiritsdistiller Co-director 25 484 ” Limited

40.SuraPisetThipharat Tradingofwhisky Commondirectorsand/orcommon 37 37 ” CompanyLimited shareholders

41.TCCCapitalLandLimited Propertydevelopment Commondirectorsand/orcommon 849 616 ” shareholders

42.T.C.C.CommercialPropertyBuildingmanangement Commondirectorsand/orcommon 1,627 1,177 ” ManagementCompany businessesandsalesoffood shareholders Limited andbeverage

43.T.C.C.HoldingCompany Investmentinothercompany MajorshareholdersandCo-director 63 192 ” Limited

44.T.C.C.HotelCollection Hotelandrestaurant Co-director 64 135 ” CompanyLimited





45.TCCHotelGroupCompanyInvestmentinstake,interest, Commondirectorsand/orcommon 32 943 TradeReceivableforsale Limited bond shareholders transactionin1.1

46.TCCHotelManagement Propertydevelopment Commondirectorsand/orcommon 487 71 ” CompanyLimited shareholders

47.TCCLandCommercial Advertisementandpublication Commondirectorsand/orcommon 1,427 514 ” CompamyLimited servicesbusinesses shareholders

48.TCCLandDevelopment Propertydevelopment Commondirectorsand/orcommon 255 394 ” CompanyLimited shareholders

49.TCCLandRetelCompany Hotel,restaurant,bar,nightclub, Commondirectorsand/orcommon 382 1,484 ” Limited bowlingbusinesses shareholders

50.TCCLandCompanyLimitedMortgage,pawn,saleof Commondirectorsand/orcommon 2,497 3,583 ” consignmentandotherbusinessshareholders transactionrelatedtoimmovable assets

51.TCCPropertyDevelopmentPropertydevelopment Commondirectorsand/orcommon 10 176 ” CompanyLimited shareholders

52.TeragroBio-TechCompanyBiogasmanufacturer Commondirectorsand/orcommon 2 3 ” Limited shareholders

53.TeragroFertilizerCompany Wholesaleofbiowastefrom Commondirectorsand/orcommon 204 545 ” Limited watertreatmentsystem shareholders

54.TeragroCompanyLimited Agriculture Co-director 316 481 ”

55.ThaiAgroProducts Processingagricultural Commondirectorsand/orcommon 830 572 ” CompanyLimited products shareholders

56.ThaiAlcoholPublic Alcoholdistiller Commondirectorsand/orcommon 36 64 ” CompanyLimited shareholders

57.ThaiBeveragePublic Investmentinothercompany Co-director 9,662 9,760 ” CompanyLimited

58.ThaiBeverageRecycle Tradingofglassesand Co-director 787,506 716,316 ” CompanyLimited packagingProducts

59.ThaiBeverageEnergy Productionandsaleoffertilizer Commondirectorsand/orcommon 133 - ” CompanyLimited andbiogas shareholders

60.ThanapakdiCompany Spiritsdistiller Co-director 26 26 ” Limited

61.TheSuphanburiSugar Sales,Wholesales,Exportsugar Commondirectorsand/orcommon 66 12 ” IndustryCompanyLimited shareholders

62.TheUttaraditSugarIndustrySales,Wholesales,Exportsugar Commondirectorsand/orcommon 231 38 ” CompanyLimited shareholders

63.TheMaewangSugar Sales,Wholesales,Exportsugar Commondirectorsand/orcommon 23 - ” IndustryCompanyLimited shareholders

64.TheparunothaiCompany Spiritsdistiller Co-director 37 38 ” Limited

65.ThippattanaArcade Spacerentalservicebusinesses Commondirectorsand/orcommon 1,919 1,544 ” CompanyLimited shareholders

66.UnitedWineryandDistillerySpiritsdistiller Co-director 419 29 ” CompanyLimited

67.UniventuresPublic Miningandtradingzincoxide Commondirectorsand/orcommon 309 318 ” CompanyLimited shareholders



370 371370 371


68.WattanapatTrading Alcoholdrinksmanufacturer Co-director 150 3 TradeReceivableforsale CompanyLimited transactionin1.1

69.WorldBookandMedia Foodcourtbusinessesand Commondirectorsand/orcommon 323 - ” CompanyLimited spacerentalservicebusinesses shareholders

70.OishiTradingCompany Salesandproducehalf-done Commondirectorsand/orcommon 2,962 4,792 ” Limited japanesefoods shareholders

71.WrangyerBeverage(2008) Manufactureandsaleof Co-director 990 1,034 ” CompanyLimited herbicide,whisly,andwhisky package(glass)

72.TheGrandLuangPrabang Propertymanagementservice Commondirectorsand/orcommon - 4 ” CompanyLimited businesses shareholders

73.SiriwanaCompanyLimited Propertydevelopment Commondirectorsand/orcommon 24 4 ” shareholders

74.N.C.C.ExhibitionOrganizer Buildingmanagementand Commondirectorsand/orcommon - 127 ” CompanyLimited projectmanagementbusinesses shareholders

75.BaanboungVetchakij Clinicalbusinesses Commondirectorsand/orcommon 1,318 371 ” CompanyLimited shareholders

76.DhosPaakCompany Advertisementandpublic Commondirectorsand/orcommon 8 6 ” Limited relations shareholders

77.ServiceAllianceCompany Parkingspacemanagement Commondirectorsand/orcommon 1 - ” Limited shareholders

78.TawannaNightBazaar Rentalspaceproviderand Co-director 131 - ” CompanyLimited management

79.ThaiBeverageLogistics Logisticservicesprovider Co-director 715 - ” CompanyLimited

80.PlantheonTrading Sugarproducttrading Co-director 110 - ” CompanyLimited

81.PhanthamaitreeCompany Realestateforrent Co-director 198 - ” Limited

82.Food&FunCompany Foodsandbeverage Co-director 67 - ” Limited

83.SukhothaiPDCompany Realestatedeveloper Co-director 33 - ” Limited


85.T.C.C.ServiceApartment Residentialrealestate Commondirectorsand/orcommon 27 - ” CompanyLimited management shareholders

86.TCCCLNarathiwad Realestatedeveloper Commondirectorsand/orcommon 2 - ” CompanyLimited shareholders

87.TCCCLNorthPark Realestatedeveloper Commondirectorsand/orcommon 1 - ” CompanyLimited shareholders

88.TCCCLSukhumvit24 Realestatedeveloperforsales Commondirectorsand/orcommon 1 - ” CompanyLimited andrent shareholders

89.TCCCLAsokeCompany Realestatedeveloperforsales Commondirectorsand/orcommon 12 - ” Limited andrent shareholders

90.NumYukCompanyLimited Alcoholbeveragewholesaler Commondirectorsand/orcommon 28 - ” and retailer shareholders





91.BangnaGlassCompany Glassbottlemanufacturerand Commondirectorsand/orcommon 25 -TradeReceivableforsale Limited distributor shareholders transactionin1.1

92.IndaraInsurancePublic Insuranceservices Commondirectorsand/orcommon 9 - ” CompanyLimited shareholders

93.PolMunKongCompany Businesstrainingandadvisory Shareholders 15 - ” Limited services

94.SukhothaiBioenergy Powerandelectricityplant Co-director 29 - ” CompanyLimited

95.EasternChemicalCompany Bio-fertilizerandchemical Commondirectorsand/orcommon 4 - ” Limited productsforagricultureand shareholders animals

96.AtMediafrontCompany Advertisermentbusinesses Commondirectorsand/orcommon 32 - ” Limited shareholders

97.AssetManagementAdvisory Realestatedeveloperforsales Commondirectorsand/orcommon 169 - ” CompanyLimited andrent shareholders

98.TCCCLSenaCompany Realestatedeveloperforsales Commondirectorsand/orcommon 1 - ” Limited andrent shareholders

99.TCCPD11Company Realestatedeveloperforsales Commondirectorsand/orcommon 54 - ” Limited andrent shareholders

Total 918,251 841,426

4 Trade Acconct Payable

Subsidiaries

1. BerliJuckerLogistics Customsclearing,warehousing,Directsubsidiaries 74,477 5,981 TradeAccountPayablefrom

CompanyLimited transportationanddistribution purchaseofgoodsandservice

service in2.1


Limited supplies

3. ThaiGlassIndustriesPublic Manufactureofglasscontainer Directsubsidiaries 1,311,772 1,197,679 ”

CompanyLimited

4. BerliJuckerCellox Manufacturerofpaperproducts Directsubsidiaries 353,314 329,126 ”

CompanyLimited

5. BerliJukerSpecialities Saleschemicalstobe Directsubsidiaries 73,457 89,195 ”

CompanyLimited compoundedinfoods,drinks

and cosmetics

6. RubiaIndustriesCompany Manufacturerofsoap,cosmeticsDirectsubsidiaries 114,826 103,149 ”

Limited andconfectionery

7. BerliJuckerFoods Salesofsnackfoods Directsubsidiaries 275,482 222,242 ”

CompanyLimited





372 373372 373

Subsidiaries

8. BJCMarketingCompany Salesofconsumerproducts Directsubsidiaries - 10 TradeAccountPayablefrom

Limited purchaseofgoodsandservice

in 2.1



supplies

10.CosmaMedicalCompany Salesofmedicalproducts Indirectsubsidiaries 498 631 ”

Limited

11.ThaiBeverageCanLimited Manufactureofaluminiumcan Directsubsidiaries 5,583 - ”

12.ThaiMalayaGlass Manufactureofglasscontainers Indirectsubsidiaryofjointly-controlled 8,525 - ”


Total 2,230,548 2,015,036

Assiciates

1. BerliDynaplastCompany Manufacturerofrigidplastic Associate,theCompanyholds49% 5,454 5,558 TradeAccountPayablefrom

Limited containers ofshares purchaseofgoodsandservice

in 2.1

2. BerliAsiaticSodaCompany Importeranddistributorof Associate,theCompanyholds50% 160,700 123,793 ”

Limited sodaash ofshares

3. GaewGrungThaiCompanyTradingcullets,glassbottle, Associatesubsidiaryholds25% 58,980 48,342 ”

Limited plasticsandusedsupplies ofshares

Total 225,134 177,693


1. PisekijCompanyLimitld Tradingcullets,glassbottle, Co-director 25,952 22,194 TradeAccountPayablefrom

plasticsandusedsupplies purchaseofgoodsandservice

in 2.1

2. BallCorporation Manufactureranddistribution Majorshareholderofsubsidiary’s 1,444 2,124 ”

packaging shareholder

3. SouthEastCapital Vehiclesbusinesses Co-director 229 233 ”

CompanyLimited

4. SoutheastLifeInsurance Lifeinsurancebusinesses Co-director 24 14 ”

CompanyLimited

5. CosmosBrewery(Thailand)Beerandsodadrinks Co-director 104 - ”

CompanyLimited manufacturer

Total 27,753 24,565




5 Short term loan to related parties

Subsidiaries

1. BerliJuckerCellox Manufacutrerofpaperproducts Directsubsidiaries 6,000 160,000 TheCompanyprovidedshortterm CompanyLimited andcallloantosubsidiary companyatthemarketinterest rate.

2. ThaiGlassIndustriesPublicManufacturerofglasscontainer Directsubsidiaries - 150,000 ” CompanyLimited

3. BerliJuckerFoods Salesofsnackfoods Directsubsidiaries 20,000 48,200 ” CompanyLimitld

4. BJCInternationalCompanyAgent Directsubsidiaries - 8,098 ” Limited(HongKong)

5. T.C.C.Technology Informationservices Directsubsidiaries 42,000 - ” CompanyLimited

Total 68,000 366,298

6 Short term loan from related parties

Subsidiaries

1. MontanaCompanyLimited Salesofcosmeticsand Directsubsidiaries 82,800 14,700 TheCompanyreceiveddeposit

machinery from subsidiary company and

issued called promissory note

atmarketrate.

2. BerliJuckerLogistics Customsclearing,warehousing,Directsubsidiaries 16,700 48,200 ”

CompanyLimited transportationanddistribution

service

3. BJCMarketingCompany Salesofconsumerproducts Directsubsidiaries 83,230 92,130 ”

Limited

4. ThaiFlourspar&Minerals Dormant Directsubsidiaries 5,300 5,300 ”

CompanyLimited


Limited supplies



supplies

7. BerliJuckerSpeciallities Saleofchemicals Directsubsidiaries 32,803 51,767 ”

Limited

8. BJCInternationalCompanyAgent Directsubsidiaries 6,126 9,448 ”

Limited





374 375374 375

7 Long-term Loans due with in one year

Subsidiaries

1. BerliJuckerCelloxLimited Manufacturerofpaperproducts Directsubsidiaries 900,000 - TheCompanygrantedlongterm

loan to the subsidiary company

atthefixedinterestrateat3.9%

p.a.,repaymentinMarch2011.

2. ThaiGlassIndustriesPublicManufacturerofglasscontainer Directsubsidiaries 1,600,000 - ”

CompanyLimited

3. RubiaIndustriesLimited Manfacturerofsoap,cosmeticsDirectsubsidiaries 100,000 - ”

and confectionery

4. BerlliJuckerFoodsLimited Salesofsnackfoods Directsubsidiaries 200,000 - ”

Total 2,800,000 -

8 Long Term Loan

Subsidiaries

1. BerliJuckerCelloxLimited Manufacturerofpaperproducts Directsubsidiaries - 900,000 TheCompanygrantedlongterm

loan to the subsidiary company

atthefixedinterestrateat3.9%

p.a.,repaymentinMarch2011.

2. ThaiGlassIndustriesPublicManufacturerofglasscontainer Directsubsidiaries - 1,600,000 ”

CompanyLimited

3. RubiaIndustriesLimited Manfacturerofsoap,cosmeticsDirectsubsidiaries - 100,000 ”

and confectionery

4. BerlliJuckerFoodsLimited Salesofsnackfoods Directsubsidiaries - 200,000 ”

Total - 2,800,000





Subsidiaries

9. RubiaIndustriesLimited Manfacturerofsoap,cosmeticsDirectsubsidiaries 33,730 32,700 TheCompanyreceiveddeposit

and confectionery from subsidiary company and

issued called promissory note

atmarketrate.

10.Thai-ScandicSteel Manufacturerofgalvanised Indirectsubsidiaries 225,000 - ”

CompanyLimited steelstructures

Total 1,008,189 731,145




9 Other Receivables

Subsidiaries

1. BJCIndustrialandTrading Salesofimagingproducts, Directsubsidiaries 7,868 305 Otherreceivablesfromrentaland

CompanyLimited stationeryandconstruction servicefeeand/ormanagement

supplies fee per 1.2 income from rental and

servicefeeand1.3incomefrom

allocationofadministrative

expense.

2. BerlliJuckerFoodsLimited Salesofsnackfoods Directsubsidiaries 5,022 2,170 ”

3. MontanaCompanyLimited Salesofcosmeticsand Directsubsidiaries 75 73 ”

machinery

4. BJCMarketingCompany Salesofconsumerproducts Directsubsidiaries - 24 ”

Limited

5. BerliJuckerSpeciallities Salesofchemicals Directsubsidiaries 1,556 1,557 ”

Limited


Limited supplies

7. BerliJuckerCelloxLimited Manufacturerofpaperproducts Directsubsidiaries 12,441 18,387 ”

8. ThaiGlassIndustriesPublicManufacturerofglasscontainer Directsubsidiaries 35,081 11,133 ”

CompanyLimited

9. CosmaMedicalCompany Salesofmedicalproducts Indirectsubsidiaries 6,418 908 ”

Limited

10.RubiaIndustriesLimited Manfacturerofsoap,cosmeticsDirectsubsidiaries 3,803 2,834 ”

and confectionery

11.Thai-ScandicSteel Manufacturerofgalvanised Indirectsubsidiaries 2,759 1,759 ”

CompanyLimited steelstructures

12.BJCInternationalCompanyAgent Directsubsidiaries 467 10 ”

Limited(Hongkong)

13.JacyfoodsSdn.Bhd. Salesofsnackfoods Indirectsubsidiaries 155 405 ”

14.ThaiSancellaCompany Dormant Indirectsubsidiaries - 248 ”

Limited (248) Allowancefordoubtfulaccounts.

15.ThaiCorpInternational Agent Subsidiariesofindirectsubsidiaries 11 - ”

(Vietnam)CompanyLimited

16.MalayaGlassProducts Manufactureofglasscontainers Directsubsidiaryofjointly-controlled 163 - ”

Sdn.Bhd. entity

17.Malaya-VietnamGlass Manufactureofglasscontainers Indirectsubsidiaryofjointly-controlled 577 - ”


18.ThaiMalayaGlass Manufactureofglasscontainers Indirectsubsidiaryofjointly-controlled 258 - ”



Total 82,379 43,647



376 377376 377

Associates

1. BerliDynaplastCompany Manufacturerofrigidplastic Associate,thecompanyhold49% 440 128 Otherreceivablesfromrentaland

Limited containers ofshares servicefeeand/ormanagement

fee per 1.2 income from rental

andservicefeeand1.3income

fromallocationofadministrative

expense.

2. BerliAsiaticSodaCompanyImporteranddistributorof Associate,thecompanyhold50% 61 65 ”

Limited sodaash ofshares

3. BJCMarineResources OperatedinleaseprawnpondsAssociate,thecompanyhold50% 8 8 ”

DevelopmentCompany andequipment ofshares

Limited

4. GaewGrungThaiCompanyTradingcullers,glassbottle, Associatesubsidiaryholds25% 1,076 - ”

Limited plasticsandusesupplies ofshares

Total 1,585 201

10 Other Payables

Subsidiaries

1. BerliJuckerLogistics Customsclearing,warehousing, Directsubsidiaries 3,613 26,317 Otheraccountspayablefrom2.2

Limited transportationanddistribution RentalandServiceExpenses

service and/or2.3InterestExpenses

and/or2.4PurchaseSparepart

andEquipment.

2. BJCInternationalCompanyAgent Directsubsidiaries 5 6 ”

Limited

3. ThaiFlourspar&Minerals Dormant Directsubsidiaries 4 4 ”

CompanyLimited

4. BJCMarketingCompany Salesofconsumerproducts Directsubsidiaries 188 - ”

Limited

5. T.C.C.Technology Informationservices Directsubsidiaries 11,018 24,874 ”

Companylimited

Total 14,828 51,201






Associates

1. BerliDynaplastCompany Manufacturerofrigidplastic Associate,thecompanyhold49% - 4 Otheraccountspayablefrom2.2

Limited containers ofshares RentalandServiceExpenses

and/or2.3InterestExpenses


andEquipment.

Total - 4


1. SouthEastCapitalLimited Vehiclesbusinesses Co-director 649 727 Otheraccountspayablefrom2.2

RentalandServiceExpenses

and/or2.3InterestExpenses


andEquipment.

2. SoutheastLifeInsurance Lifeinsurancebusinesses Co-director 149 144 ”

CompanyLimited

3. SoutheastAssurance Insurancebusinesses Co-director 453 149 ”

CompanyLimited

4. ThaiBeverageRecycle SalesofPackagingandglass Co-director 3,973 - ”

CompanyLimited containers

5. T.C.C.HotelCollection Hotelandrestaurant Co-director - 8 ”

CompanyLimited

6. DhanasindhiCompany Propertyconstruction Commondirectorsand/orcommon 23 - ”

Limited shareholders

7. ThaiDrinkCompany Beer,alcoholandsodadrinks Co-director 22 - ”

Limited manufacturer

Total 5,269 1,028

11 Other Current Assets


1. GoldenWealthCompany Consultantservice Commondirectorsand/orcommon 41 - Othercurrentassetsfromselling

Limited shareholders finishedgoodsandservices.

2. T.C.C.HoldingCompany Investmentinothercompany MajorshareholdersandCo-director 31 1 ”

Limited

3. DhosPaakCompanyLimitedAdvertisermentbusinesses Commondirectorsand/orcommon 24 - ”

shareholders

4. SangSomCompanyLimited Spiritsdistiller Co-director - 1 ”

5. ThaiBeverageMarketing Salesofimportedwhisky Co-director - 1 ”

CompanyLimited





378 379378 379


6. NumYukCompanyLimited Salesandwholesaleofwhisky Commondirectorsand/orcommon - 1 Othercurrentassetsfromselling

shareholders finishedgoodsandservices.

7. TCCLandCompanyLimited Mortgage,pawn,saleof Commondirectorsand/orcommon 110 - ”

consignmentandotherbusiness shareholders

transactionrelatedtoimmovable

assets

8. SiriwanaCompanyLimited Propertydevelopment Commondirectorsand/orcommon 1 2 ”

shareholders

9. PlantheonCompanyLimited Agriculturalbusiness Commondirectorsand/orcommon 155 16 ”

shareholders

10.SoutheastAssurance Insuranceservices Co-director 339 66 ”

CompanyLimited

11.IndaraInsurancePublic Insuranceservices Commondirectorsand/orcommon 8 4 ”

CompanyLimited shareholders

12.ThaiDrinkCompanyLimited Beer,alcoholandsodadrinks Co-director 8 - ”

manufacturer

13.ThippattanaArcade Rentalspaceproviderand Commondirectorsand/orcommon - 38 ”

CompanyLimited management shareholders

14.T.C.C.CommercialPropertyOfficespaceproviderand Commondirectorsand/orcommon - 1 ”

ManagementCompany management shareholders

Limited

15.ThaiBeveragePublic Investmentinothercompany Co-director 965 10 ”

CompanyLimited

16.ThaiBeverageLogistics Logisticservicesprovider Co-director 16 - ”

CompanyLimited

17.UniventuresPublic Miningandtradingzincoxide Commondirectorsand/orcommon 79 - ”


18.SiamRealtyCompany Realestatemanagement Commondirectorsand/orcommon 8 - ”


19.SiamFoodProductsPublic Manufacture,distribute,export Commondirectorsand/orcommon 25 - ”

CompanyLimited agri-foods shareholders

20.SouthEastCapitalLimited Vehiclesbusinesses Co-director 29 - ”

21.SoutheastLifeInsurance Lifeinsurancebusinesses Co-director 173 - ”

CompanyLimited

22.WattanapatTrading Alcoholdrinksmanufacturer Co-director 20 - ”

CompanyLimited

Total 2,032 141




12 Other Non-current Assets


1. Chor.Chana-AnanPanich Propertydevelopmenti.e.mall, Commondirectorsand/orcommon 1,000 740 Othercurrentassetsfromselling

CompanyLimited market,townhome,carparking shareholders finishedgoodsandservices.

2. ThaiDrinkCompanyLimited Beer,alcoholandsodadrinks Co-director 6 - ”

manufacturer

Total 1,006 740

13 Other Current Liabilities


1. BallCorporation Manufactureranddistribution Majorsharholderofsubsidiary’s 4,846 3,767 Othercurrentliabilitiesfrom

packaging shareholder purchasingsparepart.

2. SouthEastCapitalLimited Vehiclesbusinesses Co-director - 37 Othercurrentliabilitiesfrom

purchasingfinishedgoodsand

services.

3. SoutheastLifeInsurance Lifeinsurancebusinesses Co-director - 106 ”

CompanyLimited

4. SoutheastAssuracne Insurancebusinesses Co-director 130 255 ”

CompanyLimited

5. WattanaPhatTrading Tradingofbeerandsoda Co-director - 1 ”

CompanyLimited

6. T.C.C.HotelCollection Hotelandrestaurant Co-director - 14 ”

CompanyLimited

7. Chor.Chana-AnanPanich Propertydevelopmenti.e.mall, Commondirectorsand/orcommon 3,386 1,663 ”

CompanyLimited market,townhome,carparking shareholders

8. ThaiBeveragePublic Investmentinothercompany’s Co-director 7,293 4,557 ”

CompanyLimited stake

9. N.C.C.Management& Spacerentalforexhibition Commondirectorsand/orcommon - 32 ”

DevelopmentCompany businesses shareholders

Limited

10.SiamFoodProductsPublic Manufacture,distribute,export Commondirectorsand/orcommon 237 45 ”

CompanyLimited agri-foods shareholders

11.GoldenWealthCompany Businessadvisory Commondirectorsand/orcommon 7 - ”


12.ThippattanaArcade Rentalspaceproviderand Commondirectorsand/orcommon 6 - ”

CompanyLimited management shareholders

13.TCCLandCommercial Advertisermentbusinesses Commondirectorsand/orcommon 4 - ”






380 381380 381


14.TCCLandCompany Mortgage,pawn,saleof Commondirectorsand/orcommon 14 - Othercurrentliabilitiesfrom

Limited consignmentandotherbusiness shareholders purchasingfinishedgoodsand

transactionrelatedtoimmovable services.

assets

15.TCCHotelGroupCompanyEquitysecuritiesinvestment Commondirectorsand/orcommon 17 - ”


16.T.C.C.HoldingCompany Investmentinothercompany MajorsharholdersandCo-director 21 - ”

Limited

17.ThaiBeverageMarketing Marketanddistributeimported Co-director 10 - ”

CompanyLimited alocoholdrinks

18.PlantheonCompanyLimited Agriculturalbusiness Commondirectorsand/orcommon 5 - ”

shareholders

19.SoutheastGroupCompany Financeandleasing Commondirectorsand/orcommon 4 - ”


20.TCCCapitalLandLimited Realestatedevelopment Commondirectorsand/orcommon 35 - ”

shareholders

21.NumYukCompanyLimited Alcoholbeveragewholesaler Commondirectorsand/orcommon 2 - ”

and retailer shareholders

22.SangSomCompanyLimitedAlcoholbeveragemanufacturer Co-director 2 - ”

23.IndaraInsurancePublic Insuranceservices Commondirectorsand/orcommon 2 - ”


24.TerragroFertilizerCompanyProductionanddistributionof Commondirectorsand/orcommon 2 - ”

Limited chemicalfertilizers shareholders

25.RedBullDistillery(1988) AlcoholbeveragemanufacturerCommondirectorsand/orcommon 3 - ”

CompanyLimited anddistributor shareholders

Total 16,026 10,477

14 Other non-current liabilities


1. ThaiBeveragePublic Investmentinothercompany’s Co-director 10,584 10,584 Othernon-currentliabilitiesfrom

CompanyLimited stake purchasingfinishedgoodsand

services.

2. T.C.C.CommercialPropertyPropertymanagementand Commondirectorsand/orcommon 270 245 ”

ManagementCompany salesoffoods&beverage shareholders

Limited

3. ThippattanaArcade Spacerentalservice Commondirectorsand/orcommon 471 471 ”

CompanyLimited businesses shareholders







4. Chor.Chana-AnanPanich Propertydevelopmenti.e.mail, Commondirectorsand/orcommon 50 50 Othernon-currentliabilitiesfrom

CompanyLimited market,townhome,carparking shareholders purchasingfinishedgoodsand

lotforrent services.

5. BaanboungVetchakij Clinicalbusinesses Commondirectorsand/orcommon 703 703 ”


6. TCCLandCompanyLimited Mortgage,pawn,saleof Commondirectorsand/orcommon 345 270 ”

consignmentandotherbusiness shareholders

transactionrelatedtoimmovable

assets

7. GoldenWealthCompany Projectconsultantand Commondirectorsand/orcommon 93 93 ”

Limited managementservicebusinesses shareholders

8. T.C.C.LandRetalCompanyHotel,restaurant,bar,nightclub, Commondirectorsand/orcommon 194 93 ”

Limited bowingbusinesses shareholders

9. KalaeNightBazaar Rentalspaceproviderand Co-director 169 - ”

CompanyLimited management

10.ServiceAllianceCompany Parkingspacemanagement Commondirectorsand/orcommon 68 - ”


11.TawannaNightBazaar Rentalspaceproviderand Co-director 194 - ”

CompanyLimited management

12.TCCLandCommercial Advertisermentbusinesses Commondirectorsand/orcommon 25 - ”


13.TCCLandDevelopment Realestatedeveloperforsales Commondirectorsand/orcommon 76 - ”

CompanyLimited andrent shareholders

14.TCCHotelGroupCompanyEquitysecuritiesinvestment Commondirectorsand/orcommon 101 - ”


15.PhanthamaitreeCompany Realestaterental Co-director 68 - ”

Limited

16.Food&FunCompany Foodsandbeverage Co-director 119 - ”

Limited


18.T.C.C.ServiceApartment Residentialrealestate Commondirectorsand/orcommon 51 - ”

Company management shareholders

19.BangnaPattanakitCompanyWarehousemanagement Commondirectorsand/orcommon 25 - ”


20.LifestyleFoodcourts Foodcourts Commondirectorsand/orcommon 25 - ”


21.SiamRealtyCompany Realestaterentaland Commondirectorsand/orcommon 50 - ”

Limited management shareholders

22.ThaiBeverageLogistics Logisticservicesprovider Co-director 200 - ”

CompanyLimited

Total 13,906 12,509



382 383382 383

Related Parties Pricing Policy

Theaboverelatedpartiestransactionarenormalbusinessconditionandinaccordancewiththecontract.Theyarebasedonmarketpriceoratcontractuallyagreedpricewherenomarketpriceexists.Thesellingpriceofgoodsincalculatedfromacquired.

Necessity and Rationale of the transaction

TherelatedpartiestransactionsareincurredinordertomaximziethebenefitfromallocatingresourcesoftheGroup.

Approval procedure of related parties transaction

Thecompanyhassetaclearauthorizedpolicyandprocedureforrelatedpartiestransaction.TheyhadbeenapprovedbytheboardofDirectorsandbyShareholders’meetingifrequired.TheyhadalsobeenreportedtotheStockExchangeofThailand.

Related Parties Transaction Policy in the future

Incasethereisanyrelatedparitestransactioninthefuture,theCompanywillpursueaccordingtotheSecuritiesandExchangeAct,regulation,announcement,ororderoftheStockExchangeofThailandandcompliedwithaccountingstandardof disclosure.

Incaseofnormalbusinesstransactionsandbeingrelatedpartiestransactioninthefuture,theCompanyhassetstandardandguidelinesfornormalbusinesspracticebaseonappropriate,fairandtraceableprice.Thetransactionsareapprovedbythe Board.


Audit Report of Certified Public Accountant

To the shareholders of Berli Jucker Public Company Limited

Ihaveauditedtheaccompanyingconsolidatedandseparatebalancesheetsasat31December2010and2009,andtherelatedstatementsofincome,changesinequityandcashflowsfortheyearsthenendedofBerliJuckerPublicCompanyLimitedanditssubsidiaries,andofBerliJuckerPublicCompanyLimited,respectively.TheCompany’smanagementisresponsibleforthecorrectnessandcompletenessofinformationpresentedinthesefinancialstatements.Myresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonmyaudits.

Iconductedmyauditsinaccordancewithgenerallyacceptedauditingstandards.ThosestandardsrequirethatIplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements.Anauditalsoincludesassessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallfinancialstatementpresentation.Ibelievethatmyauditsprovideareasonablebasisformyopinion.

Inmyopinion,theconsolidatedandseparatefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,thefinancialpositionsasat31December2010and2009andtheresultsofoperationsandcashflowsfortheyearsthenendedofBerliJuckerPublicCompanyLimitedanditssubsidiaries,andofBerliJuckerPublicCompanyLimited,respectively,inaccordancewithgenerallyacceptedaccountingprinciples.

(Nirand Lilamethwat) Certified Public Accountant Registration No. 2316

KPMG Phoomchai Audit Ltd. Bangkok 24 February 2011

384 385384 385

Assets

Current assets

Cashandcashequivalents 6 1,223,766,253 841,072,404 525,682,290 439,281,229

Tradeaccountsreceivable 5,7 5,390,403,718 4,561,623,654 3,864,171,947 3,401,429,468

Currentportionoflong-termloanstorelated

parties 5 - - 2,800,000,000 -

Short-termloanstoandotherreceivablesfrom

relatedparties 5 1,585,175 201,459 150,891,060 410,145,749

Inventories 8 4,466,136,096 4,501,638,408 986,957,294 822,963,122

Othercurrentassets 9 610,235,428 416,486,375 214,951,118 151,603,677

Totalcurrentassets 11,692,126,670 10,321,022,300 8,542,653,709 5,225,423,245

Non-current assets

Investmentsinsubsidiaries 10 - - 7,593,834,194 7,056,778,312

Investmentsinjointly-controlledentity 10 - - 3,513,340,391 -

Investmentsinassociates 11 412,199,849 398,538,530 231,912,768 231,912,768

Otherlong-terminvestments 12 836,709 836,709 836,709 836,709

Long-termloanstorelatedparties 5 - - - 2,800,000,000

Leaseholdland 55,603,143 57,881,444 - -

Property,plantandequipment 4,13 12,533,500,838 11,451,208,618 352,787,844 368,668,438

Intangibleassets 4,14 1,946,451,382 156,752,865 48,928,605 29,579,447

Deferredtaxassets 4,15 432,785,687 531,571,896 151,421,972 134,526,300

Othernon-currentassets 16 122,468,654 117,799,954 7,446,623 2,609,477

Totalnon-currentassets 15,503,846,262 12,714,590,016 11,900,509,106 10,624,911,451

Totalassets 27,195,972,932 23,035,612,316 20,443,162,815 15,850,334,696

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

Consolidated Separate financialstatements financialstatements

Note 2010 2009 2010 2009 (in Baht)

BerliJuckerPublicCompanyLimitedanditsSubsidiaries

BalancesheetsAsat31December2010and2009


Liabilitiesandequity

Current liabilities

Short-termloansfromfinancialinstitutions 17 647,509,889 2,033,500,000 - -

Tradeaccountspayable 5,18 3,132,480,735 2,666,776,088 2,792,859,054 2,452,420,007

Currentportionoflong-termloans 17 433,500,000 369,000,000 - -

Currentportionofdebentures 17 3,029,587,561 - 3,029,587,561 -

Short-termloansfromandotherpayablesto

relatedparties 5,17 5,269,757 1,031,848 1,027,299,984 782,345,813

Incometaxpayable 323,378,815 242,230,386 109,100,406 137,565,412

Othercurrentliabilities 19 1,996,115,445 1,792,315,934 934,593,679 804,201,010

Totalcurrentliabilities 9,567,842,202 7,104,854,256 7,893,440,684 4,176,532,242

Non-current liabilities

Long-termloansfromfinancialinstitutions 17 2,068,250,000 582,500,000 1,576,000,000 -

Debentures 17 1,896,566,466 3,027,794,439 1,896,566,466 3,027,794,439

Provisionsforstaffretirementbenefits 20 400,779,026 365,008,474 111,022,423 98,812,273

Deferredtaxliabilities 15 488,250,341 488,250,341 - -

Othernon-currentliabilities 21 111,794,374 93,523,740 73,596,947 79,726,546

Totalnon-currentliabilities 4,965,640,207 4,557,076,994 3,657,185,836 3,206,333,258

Totalliabilities 14,533,482,409 11,661,931,250 11,550,626,520 7,382,865,500



BerliJuckerPublicCompanyLimitedanditsSubsidiariesBalancesheetsAsat31December2010and2009

Note 2010 2009 2010 2009 (in Baht)

386 387386 387

Liabilitiesandequity

Equity

Sharecapital 22

Authorisedsharecapital 1,588,125,000 1,588,125,000 1,588,125,000 1,588,125,000

Issuedandpaid-upsharecapital 1,588,125,000 1,588,125,000 1,588,125,000 1,588,125,000

Reserves 23

Sharepremium 3,751,379,641 3,751,379,641 3,751,379,641 3,751,379,641

Surplusarisingfrombusinesscombination

undercommoncontrol 4 (544,760,675) (544,760,675) - -

Donatedsurplus 36,867,563 36,867,563 36,867,563 36,867,563

SurplusondisposalsofCompany’sshares

heldbyasubsidiary 32,173,940 32,173,940 - -

Currencytranslationdifferences (101,981,842) 5,053,889 - -

Retainedearnings

Appropriated 23

Legalreserve 247,811,996 247,811,996 158,812,500 158,812,500

Reserveforbusinessexpansion 87,400,260 87,400,260 85,000,000 85,000,000

Unappropriated 6,321,628,021 5,146,652,483 3,272,351,591 2,847,284,492

Totalequityattributabletoequityholders

oftheCompany 11,418,643,904 10,350,704,097 8,892,536,295 8,467,469,196

Minorityinterests 1,243,846,619 1,022,976,969 - -

Totalequity 12,662,490,523 11,373,681,066 8,892,536,295 8,467,469,196

Totalliabilitiesandequity 27,195,972,932 23,035,612,316 20,443,162,815 15,850,334,696



BerliJuckerPublicCompanyLimitedanditsSubsidiariesBalancesheets

Asat31December2010and2009

Note 2010 2009 2010 2009 (in Baht)


Income 5

Revenuefromsaleofgoodsandrenderingof

services 26,081,835,262 22,799,172,446 18,334,467,548 16,629,208,332

Netforeignexchangegain 42,856,576 31,933,265 - -

Dividendincome 10,11 - - 601,854,318 286,470,688

Otherincome 25 234,407,315 239,360,840 383,397,585 443,076,713

Totalincome 26,359,099,153 23,070,466,551 19,319,719,451 17,358,755,733

Expenses 5

Costofsaleofgoodsandrenderingofservices 29 18,939,633,856 17,197,802,242 14,500,671,280 13,176,442,501

Sellingexpenses 26,29 2,957,071,899 2,973,674,997 2,356,761,616 2,351,198,386

Administrativeexpenses 27,29 1,374,745,175 932,745,192 844,601,862 590,525,281

Managementbenefitexpenses 28,29 59,991,825 72,701,720 59,991,825 72,701,720

Netforeignexchangeloss - - 9,023,657 270,045

Totalexpenses 23,331,442,755 21,176,924,151 17,771,050,240 16,191,137,933

Shareofprofitsofassociates 62,221,246 63,731,008 - -

Profitbeforefinancecostsandincometax

expense 3,089,877,644 1,957,273,408 1,548,669,211 1,167,617,800

Financecosts 5,30 (227,007,393) (222,160,517) (169,394,809) (121,394,618)

Profitbeforeincometaxexpense 2,862,870,251 1,735,112,891 1,379,274,402 1,046,223,182

Incometaxexpense 31 (668,053,488) (415,220,595) (223,717,398) (222,253,539)

Profitfortheyear 2,194,816,763 1,319,892,296 1,155,557,004 823,969,643

Profitattributableto:

EquityholdersoftheCompany 1,905,465,443 1,262,101,459 1,155,557,004 823,969,643

Minorityinterests 289,351,320 57,790,837 - -


Earningspershare 33 1.20 0.79 0.73 0.52



BerliJuckerPublicCompanyLimitedanditsSubsidiariesStatementsofincomeFortheyearsended31December2010and2009

Note 2010 2009 2010 2009 (in Baht)

388 389388 389

Balanc

eat

1Jan

uary

200

9

1,58

8,12

5,00

03,75

1,37

9,64

1(5

45,814

,674

)36

,867

,563

32

,173

,940

5,03

9,92

924

7,81

1,99

687

,400

,260

4,31

7,44

1,99

49,52

0,42

5,64

993

3,82

0,53

110

,454

,246

,180

Surplus

arising

fromb

usines

scom

bina

tion

un

derc

ommon

con

trol

4-

-35

,026

,576

-

--

--

-35

,026

,576

10

0,95

9,77

013

5,98

6,34

6

Restat

edb

alan

ce

1,58

8,12

5,00

03,75

1,37

9,64

1(5

10,788

,098

)36

,867

,563

32

,173

,940

5,03

9,92

924

7,81

1,99

687

,400

,260

4,31

7,44

1,99

49,55

5,45

2,22

51,03

4,78

0,30

110

,590

,232

,526

Unre

alise

dga

ins(lo

sses

)

Ad

justm

ento

npo

rtion

cha

nge

ofin

vestm

ent

-

--

--

--

--

-(20,59

2,57

0)

(20,59

2,57

0)

Translatio

noffina

ncialsta

temen

tsdiffe

renc

es

-

--

--

13,960

-

--

13,960

-

13,960

Netinc

ome

(exp

ense

)rec

ognise

ddirectly

ine

quity

-

--

--

13,960

-

--

13,960

(20,59

2,57

0)

(20,57

8,61

0)

Profitforthe

yea

r

-

-4,12

4,42

3-

--

--

1,25

7,97

7,03

61,26

2,10

1,45

957

,790

,837

1,31

9,89

2,29

6

Tota

lrec

ognise

dinco

me

and

expe

nse

-

-4,12

4,42

3-

-13

,960

-

-1,25

7,97

7,03

61,26

2,11

5,41

937

,198

,267

1,29

9,31

3,68

6

Considerat

ionpa

idto

shareh

olde

rof

subs

idiaryfo

rcom

mon

con

troltransac

tion

4-

-(35,03

7,00

0)

--

--

--

(35,03

7,00

0)

-(35,03

7,00

0)

Divid

ends

34

-

--

--

--

-(428

,766

,547

)(428

,766

,547

)-

(428

,766

,547

)

Divid

ends

ofs

ubsid

iarie

spaid

tom

inority

interests

-

--

--

--

--

-(40,18

1,59

9)

(40,18

1,59

9)

Divid

ends

paid

bysu

bsidiarie

sbefore

busin

ess

restr

ucturin

g

--

(3,060

,000

)-

--

--

-(3,060

,000

)(8,820

,000

)(11,88

0,00

0)

Balanc

eat

31De

cem

ber2

009

1,58

8,12

5,00

03,75

1,37

9,64

1(5

44,760

,675

)36

,867

,563

32

,173

,940

5,05

3,88

924

7,81

1,99

687

,400

,260

5,14

6,65

2,48

310

,350

,704

,097

1,02

2,97

6,96

911

,373

,681

,066

Con

solid

ated

fina

ncia

lsta

tem

ents

Rese

rves

Surp

lus

aris

ing

Su

rplu

s on

fro

m b

usin

ess

di

spos

als

of

Appr

opria

ted

To

tal e

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Is

sued

and

com

bina

tion

Com

pany

’s

Cur

renc

y Ap

prop

riate

d to

rese

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at

tribu

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e to

pa

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p Sh

are

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r com

mon

Do

nate

d sh

ares

hel

d by

tr

ansl

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n to

lega

l fo

r bus

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s Un

appr

opria

ted

equ

ity h

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rs

Min

ority

To

tal

No

te

shar

e ca

pita

l pr

emiu

m

cont

rol

surp

lus

a su

bsid

iary

di

ffere

nces

re

serv

e ex

pans

ion

of

the

Com

pany

in

tere

sts

equi

ty

(in B

aht)

Reta

ined

ear

ning

s

The

acco

mpan

ying n

otes

are

an in

tegra

l par

t of

thes

e finan

cial

sta

tem

ents

.

Berli

Juc

kerP

ublic

Com

pany

Lim

ited

and

itsS

ubsi

diar

ies

Stat

emen

tso

fcha

nges

ine

quity

Fort

hey

ears

end

ed3

1De

cem

ber2

010

and

2009


Balanc

eat

1Jan

uary

201

0

1,58

8,12

5,00

03,75

1,37

9,64

1(5

44,760

,675

)36

,867

,563

32

,173

,940

5,05

3,88

924

7,81

1,99

687

,400

,260

5,14

6,65

2,48

310

,350

,704

,097

1,02

2,97

6,96

911

,373

,681

,066

Unre

alise

dga

ins(lo

sses

)

Translatio

n of

fina

ncial sta

temen

ts diffe

renc

es

-

--

--

(107

,035

,731

)-

--

(107

,035

,731

)-

(107

,035

,731

)

Net inc

ome

(exp

ense

) rec

ognise

d direct

ly

in e

quity

-

--

--

(107

,035

,731

)-

--

(107

,035

,731

)-

(107

,035

,731

)

Prof

it fo

r the

yea

r

--

--

--

--

1,90

5,46

5,44

31,90

5,46

5,44

328

9,35

1,32

02,19

4,81

6,76

3

Tota

l rec

ognise

d inco

me

and

expe

nse

-

--

--

(107

,035

,731

)-

-1,90

5,46

5,44

31,79

8,42

9,71

228

9,35

1,32

02,08

7,78

1,03

2

Increa

se in

minority

inte

rest

from a

cquisit

ion

-

--

--

--

--

-9,90

2,10

89,90

2,10

8

Divid

ends

34

-

--

--

--

-(730

,489

,905

)(730

,489

,905

)-

(730

,489

,905

)

Divid

ends

of s

ubsid

iarie

s paid

to m

inority

inte

rests

-

--

--

--

--

-(78,38

3,77

8)

(78,38

3,77

8)

Balanc

eat

31De

cem

ber2

010

1,58

8,12

5,00

03,75

1,37

9,64

1(5

44,760

,675

)36

,867

,563

32

,173

,940

(1

01,981

,842

)24

7,81

1,99

687

,400

,260

6,32

1,62

8,02

111

,418

,643

,904

1,24

3,84

6,61

912

,662

,490

,523

Con

solid

ated

fina

ncia

lsta

tem

ents

Rese

rves

Surp

lus

aris

ing

Su

rplu

s on

fro

m b

usin

ess

di

spos

als

of

Appr

opria

ted

To

tal e

quity

Is

sued

and

com

bina

tion

Com

pany

’s

Cur

renc

y Ap

prop

riate

d to

rese

rve

at

tribu

tabl

e to

pa

id-u

p Sh

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unde

r com

mon

Do

nate

d sh

ares

hel

d by

tr

ansl

atio

n to

lega

l fo

r bus

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s Un

appr

opria

ted

equ

ity h

olde

rs

Min

ority

To

tal

No

te

shar

e ca

pita

l pr

emiu

m

cont

rol

surp

lus

a su

bsid

iary

di

ffere

nces

re

serv

e ex

pans

ion

of

the

Com

pany

in

tere

sts

equi

ty

(in B

aht)

Reta

ined

ear

ning

s

The

acco

mpan

ying n

ote

s ar

e an

inte

gra

l par

t of

thes

e finan

cial

sta

tem

ents

.

Berli

Juc

kerP

ublic

Com

pany

Lim

ited

and

itsS

ubsi

diar

ies

Stat

emen

tso

fcha

nges

ine

quity

Fort

hey

ears

end

ed3

1De

cem

ber2

010

and

2009

390 391390 391

Balanc

eat

1Jan

uary

200

9

1,58

8,12

5,00

03,75

1,37

9,64

136

,867

,563

15

8,81

2,50

085

,000

,000

2,45

2,08

1,39

68,07

2,26

6,10

0

Prof

it fo

r the

yea

r

--

--

-82

3,96

9,64

382

3,96

9,64

3

Divid

ends

34

-

--

--

(428

,766

,547

)(428

,766

,547

)

Balanc

eat

31De

cem

ber2

009an

d

1Ja

nuar

y20

10

1,58

8,12

5,00

03,75

1,37

9,64

136

,867

,563

15

8,81

2,50

085

,000

,000

2,84

7,28

4,49

28,46

7,46

9,19

6

Prof

it fo

r the

yea

r

--

--

-1,15

5,55

7,00

41,15

5,55

7,00

4

Divid

ends

34

-

--

--

(730

,489

,905

)(730

,489

,905

)

Balanc

eat

31De

cem

ber2

010

1,58

8,12

5,00

03,75

1,37

9,64

136

,867

,563

15

8,81

2,50

085

,000

,000

3,27

2,35

1,59

18,89

2,53

6,29

5

Sepa

rate

fina

ncia

lsta

tem

ents

Rese

rves

Re

tain

ed e

arni

ngs

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tal e

quity

Issu

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nd

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ted

to

a

ttrib

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are

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d Ap

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Com

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(in

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t)

The

acco

mpan

ying n

ote

s ar

e an

inte

gra

l par

t of

thes

e finan

cial

sta

tem

ents

.

Berli

Juc

kerP

ublic

Com

pany

Lim

ited

and

itsS

ubsi

diar

ies

Stat

emen

tso

fcha

nges

ine

quity

Fort

hey

ears

end

ed3

1De

cem

ber2

010

and

2009


Cash flows from operating activities


Adjustments for

Depreciationandamortisation 1,415,980,556 1,337,375,375 69,751,673 61,398,720

Interestincome (6,337,503) (5,006,441) (120,641,411) (127,132,851)

Financecosts 227,007,393 222,160,517 169,394,809 121,394,618

Dividendincome - - (601,854,318) (286,470,688)

Badanddoubtfuldebtsexpense 13,098,960 8,624,952 14,761,379 13,856,195

Obsoleteandslow-movinginventories(reversal) 95,574,788 (7,620,582) 17,934,260 40,584,725

Reversalofimpairmentofinvestments - - - (5,566,309)

Revenuefromunbilledconstructionwork

inprogress (3,357,606) (90,107,254) (3,357,606) (90,107,254)

Provisionsforstaffretirementbenefits 43,569,610 51,690,888 15,215,660 26,606,490

Unrealised(gain)lossonexchange (9,743,625) 3,251,686 1,382,716 1,798,328

Unrealisedgainonfairvalueofderivative (1,072,008) (10,625,095) (671,577) (4,077,494)

(Gain)lossondisposalsofequipment (1,613,447) (5,130,137) 474,584 1,055,244

Lossonwrite-offofequipment 6,553,318 23,940,941 16,342 201,761

Impairmentofequipments 54,612 - - -

Lossonwrite-offofintangibleassets 369,460 16,533,860 58 4,024,399

Shareofprofitsofassociates (62,221,246) (63,731,008) - -

Incometaxexpense 668,053,488 415,220,595 223,717,398 222,253,539

4,580,733,513 3,216,470,593 941,680,971 803,789,066



BerliJuckerPublicCompanyLimitedanditsSubsidiariesStatementsofcashflowsFortheyearsended31December2010and2009

Note 2010 2009 2010 2009 (in Baht)

392 393392 393

Changes in operating assets and liabilities

Tradeaccountsreceivable (518,593,105) (252,501,714) (479,727,380) (862,369,054)

Otherreceivablesfromrelatedparties (1,383,716) 3,603,928 (41,159,505) 46,021,373

Inventories 397,335,370 (231,905,222) (181,928,432) (366,680,195)

Othercurrentassets (69,855,906) 52,075,178 (30,316,822) (9,940,080)

Othernon-currentassets (4,668,700) 17,885,869 (4,837,147) (2,359,632)

Tradeaccountspayable 393,666,883 (287,969,106) 339,542,123 (62,862,625)

Otherpayablestorelatedparties 4,237,909 438,007 (32,089,814) 35,192,919

Othercurrentliabilities 171,542,479 204,851,858 88,628,656 400,455,232

Staffretirementbenefitspaid (17,603,753) (33,635,535) (3,005,509) (18,056,765)

Othernon-currentliabilities 18,270,634 (2,458,520) (6,129,599) (3,274,817)

Incometaxpaid (453,931,449) (390,051,186) (269,078,077) (186,992,269)

Netcashprovidedby(usedin)operating

activities 4,499,750,159 2,296,804,150 321,579,465 (227,076,847)

Cash flows from investing activities

Interestreceived 6,090,167 4,896,196 89,984,862 126,932,558

Dividendsreceived 48,559,927 46,599,718 601,854,318 286,470,688

Purchaseofproperty,plantandequipment (1,107,878,662) (618,696,105) (64,681,206) (53,684,505)

Salesofproperty,plantandequipment 4,839,165 23,703,034 3,365,841 1,877,644

Purchaseofintangibleassets (123,669,290) (21,196,178) (28,661,372) (2,413,033)

Short-termloanstorelatedparties - - (79,702,463) (195,797,537)

Proceedsfromshort-termloanstorelated

parties - - 378,000,000 849,508,832

Increaseinsharecapitalinsubsidiaries - - (537,055,882) -

Purchaseofinvestments - (135,629,570) (3,513,340,391) (494,541,330)

Netcashoutflowonacquisitionofsubsidiaries 4 (2,814,901,483) - - -

Netcash(usedin)providedbyinvesting

activities (3,986,960,176) (700,322,905) (3,150,236,293) 518,353,317



BerliJuckerPublicCompanyLimitedanditsSubsidiariesStatementsofcashflows

Fortheyearsended31December2010and2009

Note 2010 2009 2010 2009 (in Baht)


Cash flows from financing activities

Interestpaid (255,301,077) (224,895,954) (104,062,657) (119,607,014)

Dividendspaidtoequityholdersof

theCompany (730,489,905) (428,766,547) (730,489,905) (428,766,547)

Dividendspaidtominorityinterests (78,383,778) (40,181,599) - -

Dividendpaidbysubsidiariesbeforebusiness

restructuring - (11,880,000) - -

Proceedsfromshort-termloansfromfinancial

institutions 2,118,692,035 1,740,979,724 - -

Repaymentofshort-termloansfromfinancial

institutions (3,736,500,000) (1,650,555,888) - -

Proceedsfromshort-termloansfromrelated

parties - - 3,507,601,257 447,341,768

Repaymentofshort-termloansfromrelated

parties - - (3,230,557,272) (21,538,421)

Proceedsfromlong-termloansfromfinancial

institutions 1,109,447,520 35,000,000 1,576,000,000 -

Repaymentoflong-termloansfromfinancial

institutions (369,000,000) (733,500,000) - -

Netproceedsfromissuingofdebentures 1,898,359,589 - 1,896,566,466 -

Netcash(usedin)providedbyfinancing

activities (43,175,616) (1,313,800,264) 2,915,057,889 (122,570,214)

Netincreaseincashandcashequivalents 469,614,367 282,680,981 86,401,061 168,706,256

Cashandcashequivalentsatbeginningofyear 841,072,404 568,707,987 439,281,229 270,574,973

Effectofexchangeratechangesonbalances

heldinforeigncurrencies (86,920,518) (10,316,564) - -

Cashandcashequivalentsatendofyear 6 1,223,766,253 841,072,404 525,682,290 439,281,229

Non-cash transactions

Purchaseofplantandequipmentoncredit

terms 166,389,461 225,145,953 51,690 16,317,207



BerliJuckerPublicCompanyLimitedanditsSubsidiariesStatementsofcashflowsFortheyearsended31December2010and2009

Note 2010 2009 2010 2009 (in Baht)

394 PB

1 Generalinformation

2 Basisofpreparationofthefinancialstatements

3 Significantaccountingpolicies

4 Acquisitionsandbusinessrestructuring

5 Relatedpartytransactionsandbalances

6 Cashandcashequivalents

7 Tradeaccountsreceivable

8 Inventories

9 Othercurrentassets

10 Investmentsinsubsidiariesandjointly-

controlledentity

11 Investmentsinassociates

12 Otherlong-terminvestments

13 Property,plantandequipment

14 Intangibleassets

15 Deferredtax

16 Othernon-currentassets

17 Interest-bearingliabilities

18 Tradeaccountspayable

19 Othercurrentliabilities

20 Provisionforstaffretirementbenefits

21 Othernon-currentliabilities

22 Sharecapital

23 Additionalpaid-incapitalandreserves

24 Segmentinformation

25 Otherincome

26 Sellingexpenses

27 Administrativeexpenses

28 Employeebenefitexpenses

29 Expensesbynature

30 Financecosts

31 Incometaxexpense

32 Promotionalprivileges

33 Earningspershare

34 Dividends

35 Financialinstruments

36 Commitmentswithnon-relatedparties

37 Eventsafterthereportingperiod

38 ThaiFinancialReportingStandards(TFRS)not

yetadopted

Note Contents Note Contents

Berli Jucker Public Company Limited and its SubsidiariesNotes to the financial statements

For the years ended 31 December 2010 and 2009

PB 395Annual Report 2010 • Berli Jucker Public Company Limited

Berli Jucker Public Company Limited and its SubsidiariesNotes to the financial statementsFor the years ended 31 December 2010 and 2009

Thesenotesformanintegralpartofthefinancialstatements.

ThefinancialstatementswereauthorisedforissuebytheBoardofDirectorson24February2011.

1 Generalinformation

BerliJuckerPublicCompanyLimited,the“Company”,isincorporatedinThailandandhasitsregisteredofficeatBerliJuckerHouse,99SoiRubia,Sukhumvit42Road,Bangkok10110.

TheCompanywaslistedontheStockExchangeofThailandinApril1975.

TheimmediateandultimateparentcompanyduringthefinancialyearwasT.C.C.HoldingCompanyLimitedwhichwasincorporatedinThailand.

TheprincipalbusinessesoftheCompany,itssubsidiariesanditsjointly-controlledentity,(togetherreferredtoasthe“Group”),areinvolvedinmanufacturing,distributionandotherserviceactivitiesinthefollowingareas:

Industrial supply chain

TheGroup is involved in themanufacturing,marketinganddistributionofglasscontainers,aluminumcanandrigidplasticcontainersandinthedesign,supplyandassemblyofautomation&controlsystems,industrialequipment,logistics&warehouseandgalvanisedsteeltowersforpowertransmissionlines.

Consumer supply chain

TheGroupisinvolvedinthemanufacturing,marketinganddistributionofvariousconsumerproductsincludingtissuepaper,personalproducts(soapsandshampoos),snackfoodsandconfectionery.TheseproductsaremarketedanddistributedunderBJC’sownbrandnamesaswellasundercontractswiththirdparties.Inaddition,theGroupisinvolvedinprovidingcustomsclearing,warehousing,transportationanddistributionserviceforbothGroupcompaniesandoutsidecustomers.

Technical supply chain

TheGroupisinvolvedintheimportinganddistributionofvariousproductsincludingstationery,industrialchemicals,foodingredients,pharmaceuticals,imagingproductsandhospitalsupplies.

DetailsoftheCompany’ssubsidiariesandjointly-controlledentityasat31December2010and2009wereasfollows:

Countryof Groupownershipinterest Nameoftheentity Typeofbusiness incorporation

Direct subsidiaries

Montana Company Limited Sale of cosmetics and machinery Thailand 100.00 100.00

Berli Jucker Foods Limited Manufacture of snack foods Thailand 100.00 100.00

Rubia Investments Limited Investment vehicle British Virgin Islands 100.00 100.00

Berli Jucker Logistics Limited Customs clearing, warehousing, Thailand 100.00 100.00 transportation and distribution service

2010 2009 %

396 397396 397



Direct subsidiaries

BJC Marketing Company Limited Sale of consumer products Thailand 100.00 100.00

BJC Healthcare Company Limited Sale of medicals and hospital supplies Thailand 100.00 100.00

BJC Industrial and Trading Company Limited Sale of imaging product, stationery and Thailand 100.00 100.00 construction supplies

Thai Flourspar & Minerals Company Limited Dormant Thailand 100.00 100.00

BJC International Company Limited Agent Thailand 100.00 100.00

Berli Jucker (Myanmar) Limited Import and export Myanmar 100.00 100.00

BJC International Company Limited Agent Hong Kong 100.00 100.00

Rubia Industries Limited Manufacture of soap, cosmetics Thailand 99.85 99.85 and confectionery

Berli Jucker Specialties Limited Sale of chemicals Thailand 99.15 99.15

Thai Glass Industries Public Company Limited Manufacture of glass containers Thailand 98.59 98.59

Berli Jucker Cellox Limited Manufacture of paper products Thailand 94.84 94.84

T.C.C. Technology Company Limited Rendering services of information Thailand 51.00 51.00 technology

Thai Beverage Can Limited Manufacture of aluminium can Thailand 50.00* 50.00*

Indirect subsidiaries

Jacy Foods Sdn Bhd Manufacture of snack foods Malaysia 100.00 100.00

Cosma Medical Company Limited Sale of medical products Thailand 100.00 100.00

BJC International (Vietnam) Limited Agent Vietnam 100.00 98.59

BJC Glass Company Limited # Investment, trading, import and export Hong Kong 100.00 - (non-operation)

Thai-Scandic Steel Company Limited Manufacture of galvanised steel structures Thailand 99.85 99.85

Marble & Stones Company Limited Dormant Thailand 99.77 99.77

Thai Corp International Company Limited Investment vehicle Hong Kong 75.00 -

TBC-Ball Beverage Can Holding Limited # Investment vehicle Hong Kong 53.57 -

Subsidiary of indirect subsidiaries

Thai Corp International (Vietnam) Agent Vietnam 75.00 - Company Limited

BJC Glass Vietnam Limited # Manufacture of glass containers Vietnam 100.00 - (non-operation)

Jointly-controlled entity

BJC O-I Glass Pte Ltd. Investment vehicle Singapore 50.00 -

Direct subsidiary of jointly-controlled entity

Malaya Glass Products Sdn Bhd Manufacture of glass containers Malaysia 50.00 -

Indirect subsidiary of jointly-controlled entity

Thai Malaya Glass Company Limited Manufacture of glass containers Thailand 35.00 -

Malaya-Vietnam Glass Company Limited Manufacture of glass containers Vietnam 35.00 -

* The Company has the power to govern the financial and operating policies of this subsidiary. # The financial statements of the companies were prepared by their management’s and have not been audited by the auditors. Due to such companies recently registered and had non-operation.

Countryof Groupownershipinterest Nameoftheentity Typeofbusiness incorporation 2010 2009

%



On13August2009,ThaiCorpInternationalCompanyLimited,theCompany’sindirectsubsidiary,wasincorporatedinHongKongwithanauthorisedsharecapitalofHKD25millionandissued25millionordinarysharesatitsparvalueofHKD1eachandon22September2009,BJCGlassCompanyLimited,theCompany’sindirectsubsidiary,wasincorporatedinHongKongwithanauthorisedsharecapitalofHKD10,000andissued10,000ordinarysharesatitsparvalueofHKD1each.BJCInternationalCompanyLimited,theCompany’ssubsidiary,holdsequitysharesinbothcompaniesof75%and100%,respectively.

On3December2010,TBC-BallBeverageCanHoldingLimited,theCompany’sindirectsubsidiary,wasincorporatedinHongKongwithanauthorisedsharecapitalofUSD40millionandissued40millionordinarysharesatitsparvalueofUSD1each.ThaiBeverageCanLimited,theCompany’sdirectsubsidiary,holdsequitysharesinthecompanyof53.57%.

On17May2010,ThaiCorpInternational(Vietnam)CompanyLimited,theCompany’ssubsidiaryofindirectsubsidiary,wasincorporatedinVietnamwithanauthorisedsharecapitalofVND5,400million.ThaiCorpInternationalCompanyLimited,theCompany’sindirectsubsidiary,holdstheentireshares.

On19March2010,BJCVietnamGlassLimited,thesubsidiaryoftheCompany’sindirectsubsidiary,wasincorporatedinVietnamwithlegalcapitalofUSD15.82millionorVND292,707millionandreceivedthebusinesslicense.

2 Basisofpreparationofthefinancialstatements

ThefinancialstatementsissuedforThaireportingpurposesarepreparedintheThailanguage.ThisEnglishtranslationofthefinancialstatementshasbeenpreparedfortheconvenienceofreadersnotconversantwiththeThailanguage.

ThefinancialstatementsarepresentedinThaiBaht,roundedinthenotestothefinancialstatementstothenearestthousandunlessotherwisestated.Theyarepreparedonthehistoricalcostbasisexceptasstatedintheaccountingpolicies.

The financial statements areprepared in accordancewith Thai FinancialReportingStandards (“TFRS”); guidelinespromulgatedbytheFederationofAccountingProfessions(“FAP”);applicablerulesandregulationsoftheThaiSecuritiesandExchangeCommission;andwithgenerallyacceptedaccountingprinciplesinThailand.

During2010,theFAPannouncedthere-numberingofthefollowingTFRS.

TAS 11 TAS 101 Doubtful Account and Bad Debts

TAS 26 TAS 102 Income Recognition for Real Estate Business

TAS 27 TAS 103 Disclosures in the Financial Statements of Banks and

Similar Financial Institutions

Former no. Revised no. Topic

398 399398 399



TAS 34 TAS 104 Accounting for Troubled Debt Restructuring

TAS 40 TAS 105 Accounting for Investment in Debt and Equity Securities

TAS 42 TAS 106 Accounting for Investment Companies

TAS 48 TAS 107 Financial Instruments Disclosure and Presentation

Former no. Revised no. Topic

TheGrouphasadoptedtherevisedFrameworkforthePreparationandPresentationofFinancialStatements(revised2009),whichwasissuedbytheFAPduring2010andeffectiveon26May2010.Theadoptionoftherevisedframeworkdoesnothaveanymaterialimpactontheconsolidatedorseparatefinancialstatements.

TheFAPhasissuedduring2010anumberofnewandrevisedTFRSwhicharenotcurrentlyeffectiveandhavenotbeenadoptedinthepreparationofthesefinancialstatements.Thesenewandrevisedstandardsandinterpretationsaredisclosedinnote38.

ThepreparationoffinancialstatementsinconformitywithTFRSrequiresmanagementtomakejudgements,estimatesandassumptionsthataffecttheapplicationofpoliciesandreportedamountsofassets,liabilities,incomeandexpenses.Actualresultsmaydifferfromestimates.

Estimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichestimatesarerevisedandinanyfutureperiodsaffected.

Informationaboutsignificantareasofestimationuncertaintyandcriticaljudgementsinapplyingaccountingpoliciesthathavethemostsignificanteffectontheamountrecognisedinthefinancialstatementsisincludedinthefollowingnotes:

Note4 Businesscombination

Note7 Tradeaccountsreceivable

Note8 Inventories

Note15 Utilisationoftaxlosses

Note20 Provisionforstaffretirementbenefits

Note35 Valuationoffinancialinstruments



3 Significantaccountingpolicies

(a) Basis of consolidation

TheconsolidatedfinancialstatementsrelatetotheCompanyanditssubsidiariesandjointly-controlledentity(togetherreferredtoasthe“Group”)andtheGroup’sinterestsinassociates.

ThefinancialstatementsofBerliJucker(Myanmar)CompanyLimited,asubsidiarywhichwasregisteredinUnionofMyanmar,arenotincludedintheconsolidatedfinancialstatementsasthissubsidiaryoperatesunderrestrictionsoftheGovernmentofUnionofMyanmar.Asaresult,theCompanylosesthepowertogovernthefinancialandoperatingpoliciesofthissubsidiary.

Business combinations

Businesscombinationsareaccountedforunderthepurchasemethod.Thecostofanacquisitionismeasuredatthefairvalueoftheassetsgiven,equityinstrumentsissuedandliabilitiesincurredorassumedatthedateofexchange,pluscostsdirectlyattributabletotheacquisition.

BusinesscombinationsofentitiesorbusinessundercommoncontrolareaccountedforusingamethodsimilartothepoolingofinterestmethodandinaccordancewiththeGuidelineissuedin2010bytheFAP.

Subsidiaries

SubsidiariesareentitiescontrolledbytheGroup.ControlexistswhentheGrouphasthepower,directlyorindirectly,togovernthefinancialandoperatingpoliciesofanentitysoastoobtainbenefitsfromitsactivities.Thefinancialstatementsofsubsidiariesareincludedintheconsolidatedfinancialstatementsfromthedatethatcontrolcommencesuntilthedatethatcontrolceases.TheaccountingpoliciesofsubsidiarieshavebeenchangedwherenecessarytoalignthemwiththepoliciesadoptedbytheGroup.


Jointly-controlledentityisthatentityoverwhoseactivitiestheGrouphasjointcontrol,establishedbycontractualagreement and requiringunanimousconsent for strategic financial andoperatingdecisions. Theconsolidated financialstatementsincludetheGroup’sproportionateshareoftheentity’sassets,liabilities,revenueandexpensescombinedwithitemsofasimilarnatureonalinebylinebasis,fromthedatethatjointcontrolcommencesuntilthedatethatjointcontrolceases.

Associates

Associatesarethoseentities inwhichtheGrouphassignificant influence,butnotcontrol,over thefinancialandoperatingpolicies.SignificantinfluenceispresumedtoexistwhentheGroupholdsbetween20%and50%ofthevotingpowerofanotherentity.TheconsolidatedfinancialstatementsincludetheGroup’sshareoftheincome,expensesandequitymovementsofassociatesfromthedatethatsignificantinfluencecommencesuntilthedatethatsignificantinfluenceceases.WhentheGroup’sshareoflossesexceedsitsinterestinanassociate,theGroup’scarryingamountisreducedtoniland

400 401400 401



recognitionoffurtherlossesisdiscontinuedexcepttotheextentthattheGrouphasincurredlegalorconstructiveobligationsormadepaymentsonbehalfoftheassociate.

Transactions eliminated on consolidation

Intra-groupbalancesandtransactions,andanyunrealisedincomeorexpensesarisingfromintra-grouptransactions,areeliminatedinpreparingtheconsolidatedfinancialstatements.UnrealisedgainsarisingfromtransactionswithassociatesareeliminatedagainsttheinvestmenttotheextentoftheGroup’sinterestintheinvestee.Unrealisedlossesareeliminatedinthesamewayasunrealisedgains,butonlytotheextentthatthereisnoevidenceofimpairment.

(b) Foreign currencies

Foreign currency transactions

TransactionsinforeigncurrenciesaretranslatedtoThaiBahtattheforeignexchangeratesrulingatthedatesofthetransactions.

MonetaryassetsandliabilitiesdenominatedinforeigncurrenciesatthereportingdatearetranslatedtoThaiBahtattheforeignexchangeratesrulingatthatdate.Foreignexchangedifferencesarisingontranslationarerecognisedinthestatementofincome.

Non-monetaryassetsandliabilitiesmeasuredatcost in foreigncurrenciesaretranslatedtoThaiBahtusingtheforeignexchangeratesrulingatthedatesofthetransactions.

Foreign entities

TheassetsandliabilitiesofforeignentitiesaretranslatedtoThaiBahtattheforeignexchangeratesrulingatthereportingdate.

Goodwillandfairvalueadjustmentsarisingontheacquisitionofforeignentitiesarestatedatexchangeratesrulingontransactiondates.

TherevenuesandexpensesofforeignentitiesaretranslatedtoThaiBahtatratesapproximatingtheforeignexchangeratesrulingatthedatesofthetransactions.

Foreignexchangedifferencesarisingontranslationarerecognisedinaseparatecomponentofequityuntildisposaloftheinvestments.

(c) Derivative financial instruments

Derivativefinancial instrumentsareusedtomanageexposuretoforeignexchange, interestrateandcommoditypricerisksarisingfromoperationalandfinancingactivities.Derivativefinancialinstrumentsarenotusedfortradingpurposes.However,derivativesthatdonotqualifyforhedgeaccountingareaccountedforastradinginstruments.

Derivativefinancialinstrumentsarerecognisedinitiallyatfairvalue;attributabletransactioncostsarerecognisedinthestatementofincomewhenincurred.Subsequenttoinitialrecognition,theyareremeasuredatfairvalue.Thegainorloss



onremeasurementtofairvalueisrecognisedimmediatelyinthestatementofincome.However,wherederivativesqualifyforhedgeaccounting,recognitionofanyresultantgainorlossdependsonthenatureoftheitembeinghedged(seeaccountingpolicy3.d).

Thefairvalueofinterestrateswapsisbasedonbrokerquotesatthereportingdate.

Thefairvalueofforwardexchangecontractsisbasedontheirlistedmarketpriceatthereportingdate.

(d) Hedging

Fair value hedges

Whereaderivativefinancialinstrumenthedgesthechangesinfairvalueofarecognisedasset,liabilityorunrecognisedfirmcommitment,anygainorlossonremeasuringthefairvalueorforeigncurrencycomponentofthehedginginstrumentisrecognisedinthestatementofincome.Thehedgeditemisalsostatedatfairvalueinrespectoftheriskbeinghedged,withanygainorlossbeingrecognisedinthestatementofincome.

Inaddition,asubsidiaryoftheCompanyenteredintoanaturalgashedgingagreementinwhichpremiumsandthedifferenceofthenaturalgaspricearisingfromthisagreementwillberecordedasexpensesinthestatementofincome.

Cash flow hedges

Whereaderivativefinancialinstrumentisdesignatedasahedgeofthevariabilityincashflowsofarecognisedassetorliabilityorahighlyprobableforecasttransaction,theeffectivepartofanygainorlossonthederivativefinancialinstrumentisrecogniseddirectlyinequity.

Ifahedgeofaforecasttransactionsubsequentlyresultsintherecognitionofafinancialassetorfinancialliability,theassociatedcumulativegainsorlossesthatwererecogniseddirectlyinequityarerecognisedinthestatementofincomeinthesameperiodorperiodsduringwhichtheassetacquiredorliabilityassumedaffectsthestatementofincome.

Ifahedgeofaforecasttransactionsubsequentlyresultsintherecognitionofanon-financialassetornon-financialliability,oraforecasttransactionforanon-financialassetornon-financialliabilitybecomesafirmcommitmentforwhichfairvaluehedgeaccountingisapplied,theassociatedcumulativegainsorlossesthatwererecogniseddirectlyinequityareremovedfromequityandrecognisedinthestatementofincomeinthesameperiodorperiodsduringwhichtheassetacquiredorliabilityassumedaffectsthestatementofincome.

Forcashflowhedgesotherthanthosenotedintheprecedingtwoparagraphs,theassociatedcumulativegainsorlossesthatwererecogniseddirectlyinequityareremovedfromequityandrecognisedinthestatementofincomeinthesameperiodorperiodsduringwhichthehedgedforecasttransactionaffectsthestatementofincome.

Discontinuing hedge accounting

Hedgeaccounting isdiscontinuedprospectivelywhen thehedging instrumentexpiresor is sold, terminatedorexercised,orno longerqualifies forhedgeaccounting. Anycumulativegainor losson thehedging instrumentexistinginequityisretainedinequityandisrecognisedwhentheforecasttransactionisultimatelyrecognisedinthestatementof

402 403402 403



income.Whenaforecasttransactionisnolongerexpectedtooccur,thecumulativegainorlossthatwasreportedinequityisrecognisedinthestatementofincomeimmediately.

(e) Cash and cash equivalents

Cashandcashequivalentsinthestatementofcashflowscomprisecashbalances,calldepositsandhighlyliquidshort-terminvestments.Bankoverdraftsthatarerepayableondemandareacomponentofcashandcashequivalentsforthepurposeofthestatementofcashflows.

(f) Trade and other accounts receivable

Tradeandotheraccountsreceivablearestatedattheirinvoicevaluelessallowancefordoubtfulaccounts.

Theallowancefordoubtfulaccountsisassessedprimarilyonanalysisofpaymenthistoriesandfutureexpectationsofcustomerpayments.Baddebtsarewrittenoffwhenincurred.

(g) Inventories

Inventoriesarestatedatthelowerofcostandnetrealisablevalue.

Costiscalculatedusingtheweightedaveragecostandfirstinfirstoutprinciples,andcomprisesallcostsofpurchase,costsofconversionandothercostsincurredinbringingtheinventoriestotheirpresentlocationandcondition.Inthecaseofmanufacturedinventoriesandwork-in-progress,costincludesanappropriateshareofproductionoverheadsbasedonnormaloperatingcapacity.

Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcoststocompleteandtomakethesale.

Anallowanceismadeforalldeteriorated,damaged,obsoleteandslow-movinginventories.

(h) Construction contracts work in progress

Constructioncontractsworkinprogressrepresentsthegrossunbilledamountexpectedtobecollectedfromcustomersforcontractworkperformedtodate.Itismeasuredatcostplusprofitrecognisedlessprogressbillingsandrecognisedlosses.CostincludesallexpenditurerelateddirectlytospecificprojectsandanallocationoffixedandvariablecostsincurredintheGroup’s/Company’sconstructioncontractingactivitiesbasedonnormaloperatingcapacity.

Constructioncontractsworkinprogressispresentedasapartofothercurrentassetsinthebalancesheet.Ifpaymentsreceivedfromcustomersexceedtheincomerecognised,thenthedifferenceispresentedasapartofothercurrentliabilitiesinthebalancesheet.

(i) Investments

Investments in subsidiaries, jointly-controlled entity and associates

Investmentsinsubsidiaries,jointly-controlledentityandassociatesintheseparatefinancialstatementsoftheCompany



areaccountedforusingthecostmethod.Investmentsinassociatesandjointly-controlledentityintheconsolidatedfinancialstatementsareaccountedforusingtheequitymethod.

Investments in other equity securities

Equitysecuritieswhicharenotmarketablearestatedatcostlessanyimpairmentlosses.

Disposal of investments

Ondisposalofaninvestment,thedifferencebetweennetdisposalproceedsandthecarryingamountisrecognisedinthestatementofincome.

IftheGroupdisposesofpartofitsholdingofaparticularinvestment,thedeemedcostofthepartsoldisdeterminedusingtheweightedaveragemethodappliedtothecarryingvalueofthetotalholdingoftheinvestment.

(j) Leasehold land

Leaseholdlandisstatedatcostlessaccumulatedamortisation.

Amortisation

Amortisationischargedtothestatementofincomeonastraight-linebasisovertheperiodofthecontract.

(k) Property, plant and equipment

Owned assets

Property,plantandequipmentarestatedatcostlessaccumulateddepreciationandimpairmentlosses.

Leased assets

LeasesintermsofwhichtheGroupsubstantiallyassumesalltheriskandrewardsofownershipareclassifiedasfinanceleases.Property,plantandequipmentacquiredbywayoffinanceleasesiscapitalisedatthelowerofitsfairvalueandthepresentvalueoftheminimumleasepaymentsattheinceptionofthelease,lessaccumulateddepreciationandimpairmentlosses.Leasepaymentsareapportionedbetweenthefinancechargesandreductionoftheleaseliabilitysoastoachieveaconstantrateofinterestontheremainingbalanceoftheliability.Financechargesarechargeddirectlytothestatementofincome.

Depreciation

Depreciationischargedtothestatementofincomeonastraight-linebasisovertheestimatedusefullivesofeachpartofanitemofproperty,plantandequipment.Theestimatedusefullivesareasfollows:

Buildings,landandbuildingimprovement 20-40 years Machineryandequipment 5-20 years Furniture,fixturesandofficeequipment 5-10 years Vehicles 5-10 years

404 405404 405



Nodepreciationisprovidedonlandandassetsunderconstruction.

(l) Intangible assets

Goodwill

GoodwillinabusinesscombinationrepresentstheexcessofthecostofacquisitionoverthefairvalueoftheGroup’sshareoftheidentifiablenetassetsacquired.NegativegoodwillinabusinesscombinationrepresentstheexcessofthefairvalueoftheGroup’sshareoftheidentifiablenetassetsacquiredoverthecostofacquisition.TheGroupchangeditsaccountingpolicyforgoodwillwitheffectfrom1January2008asfollows:

Acquisitionspriorto1January2008 Goodwillandnegativegoodwillwasstatedatcostfromthedateofinitialrecognitionandamortisedoveritsestimatedusefullifeof20years.On1January2008,theGroupdiscontinuedamortisationofgoodwill.Theremainingbalanceissubjecttotestingforimpairment,asdescribedinnote3(n).Negativegoodwillcarriedinthefinancialstatementsasat31December2007wasderecognisedbycreditingunappropriatedretainedearningson1January2008.

Acquisitionsonorafter1January2008 Goodwillismeasuredatcostlessaccumulatedimpairmentlosses.Goodwillistestedforimpairmentasdescribedinnote3(n).Negativegoodwillisrecognisedimmediatelyinthestatementofincome.

Other intangible assets

OtherintangibleassetsthatareacquiredbytheGroup,whichhavefiniteusefullives,arestatedatcostlessaccumulatedamortisationandimpairmentlosses.Otherintangibleassetsareamortisedinthestatementofincomeonastraight-linebasisovertheirestimatedusefullivesfromthedatethattheyareavailableforuse.Theestimatedusefullivesareasfollows:

Softwarelicences 5 years Patentsandtrademarks 10 years Distributionchannel 20 years

Noamortisationisprovidedonintangibleassetsunderinstallation.

(m) Other assets

Transportationpackagingpresentedinothernon-currentassetsisamortisedoveritsusefulliferangingfrom36to60months.

(n) Impairment

ThecarryingamountsoftheGroup’sassetsarereviewedateachreportingdatetodeterminewhetherthereisanyindicationof impairment. Ifanysuch indicationexists, theasset’s recoverableamountsareestimated.Forgoodwill, therecoverableamountisestimatedateachreportingdate,andasandwhenindicatorsofimpairmentareidentified.



Animpairmentlossisrecognisedifthecarryingamountofanassetoritscash-generatingunitexceedsitsrecoverableamount.Theimpairmentlossisrecognisedinthestatementofincome.

Calculation of recoverable amount

Therecoverableamountofanon-financialassetisthegreateroftheasset’svalueinuseandfairvaluelesscoststosell.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.Foranassetthatdoesnotgeneratecashinflowslargelyindependentofthosefromotherassets,therecoverableamountisdeterminedforthecash-generatingunittowhichtheassetbelongs.

Reversals of impairment

Animpairmentlossinrespectofafinancialassetisreversedifthesubsequentincreaseinrecoverableamountcanberelatedobjectivelytoaneventoccurringaftertheimpairmentlosswasrecognised.

Animpairmentlossinrespectofgoodwillisnotreversed.Impairmentlossesrecognisedinpriorperiodsinrespectofothernon-financialassetsareassessedateachreportingdateforanyindicationsthatthelosshasdecreasedornolongerexists.Animpairmentlossisreversediftherehasbeenachangeintheestimatesusedtodeterminetherecoverableamount.Animpairmentlossisreversedonlytotheextentthattheasset’scarryingamountdoesnotexceedthecarryingamountthatwouldhavebeendetermined,netofdepreciationoramortisation,ifnoimpairmentlosshadbeenrecognised.

(o) Interest-bearing liabilities

Interest-bearingliabilitiesarerecognisedinitiallyatcostlessattributabletransactioncharges.Subsequenttoinitialrecognition,interest-bearingliabilitiesarestatedatamortisedcostwithanydifferencebetweencostandredemptionvaluebeingrecognisedinthestatementofincomeovertheperiodoftheborrowings.

(p) Trade and other accounts payable

Tradeandotheraccountspayablearestatedatcost.

(q) Employee benefits

Defined contribution plans

Obligationsforcontributionstodefinedcontributionpensionplansarerecognisedasanexpenseinthestatementofincomeasincurred.

Defined benefit plans

Thedefinedbenefitretirementplanisbasedontheyearsofserviceandremunerationatretirementandisprovidedforallemployees.Theplanisnotfundedbutareservefortheliabilityisrecordedinthefinancialstatements.Annualpensioncostisestimatedbyreferencetoexpectedfinalemployeebenefits,lengthofserviceandotherrelatedfactors.

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(r) Provisions

AprovisionisrecognisedwhentheGrouphasapresentlegalorconstructiveobligationasaresultofapastevent,anditisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligationandareliableestimatecanbemadeoftheamountoftheobligation.Iftheeffectismaterial,provisionsaredeterminedbydiscountingtheexpectedfuturecashflowsatapre-taxratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyand,whereappropriate,therisksspecifictotheliability.

(s) Surplus arising from business combination under common control

SurplusarisingfrombusinesscombinationundercommoncontrolarisesfromthemergerofbusinessesunderthecommoncontroloftheultimatemajorityshareholderoftheCompany.Thesurplusrepresentsthedifferencebetweenthecostofthecombinationandthecarryingamountsofnetidentifiableassetsatthedateofcombination.TheCompanyrecognisesthedifferencearisingfromcommoncontroltransactionsundershareholders’equityuntildisposaloftheinvestment.

(t) Revenue

Revenueexcludesvalueaddedtaxesandisarrivedatafterdeductionoftradediscounts.

Sale of goods and services rendered

Revenueisrecognisedinthestatementofincomewhenthesignificantrisksandrewardsofownershiphavebeentransferredtothebuyer.Norevenueisrecognisedifthereiscontinuingmanagementinvolvementwiththegoodsortherearesignificantuncertaintiesregardingrecoveryoftheconsiderationdue,associatedcostsortheprobablereturnofgoods.Serviceincomeisrecognisedasservicesareprovided.

Rental income

Rentalincomeisrecognisedinthestatementofincomeonastraight-linebasisoverthetermofthelease.Leaseincentivesgrantedarerecognisedasanintegralpartofthetotalrentalincome.Contingentrentalsarerecognisedasincomeintheaccountingperiodinwhichtheyareearned.

Long-termleasepremiumsreceivedinadvancearebookedasdeferredincomeandaredealtwithunderothernon-currentliabilities.Incomeisrecognisedonastraight-linebasisoverthedurationofthelease.Incomerecognisablewithinoneyearisdealtwithaspartofothercurrentliabilities.

Interest and dividend income

Interestincomeisrecognisedinthestatementofincomeasitaccrues.DividendincomeisrecognisedinthestatementofincomeonthedatetheGroup’srighttoreceivepaymentsisestablished.

Otherincomeisrecognisedonanaccrualbasis.



(u) Expenses

Operating leases

Paymentsmadeunderoperatingleasesarerecognisedinthestatementofincomeonastraightlinebasisoverthetermofthelease.Leaseincentivesreceivedarerecognisedinthestatementofincomeasanintegralpartofthetotalleasepaymentsmade.Contingentrentalsarechargedtothestatementsofincomefortheaccountingperiodinwhichtheyareincurred.

Finance costs

Interestexpensesandsimilarcostsarechargedtothestatementofincomefortheperiodinwhichtheyareincurred,excepttotheextentthattheyarecapitalisedasbeingdirectlyattributabletotheacquisition,constructionorproductionofanassetwhichnecessarilytakesasubstantialperiodoftimetobepreparedforitsintendeduseorsale.Theinterestcomponentoffinanceleasepaymentsisrecognisedinthestatementofincomeusingtheeffectiveinterestratemethod.

Otherexpensesarerecognisedonanaccrualbasis.

(v) Income tax

Incometaxontheprofitorlossfortheyearcomprisescurrentanddeferredtax.Incometaxisrecognisedinthestatementofincomeexcepttotheextentthatitrelatestoitemsrecogniseddirectlyinequity,inwhichcaseitisrecognisedinequity.

Current tax

Currenttaxistheexpectedtaxpayableonthetaxableincomefortheyear,usingtaxratesenactedorsubstantivelyenactedatthereportingdate,andanyadjustmenttotaxpayableinrespectofpreviousyears.

Deferred tax

Deferredtaxisrecognisedinrespectoftemporarydifferencesbetweenthecarryingamountsofassetsandliabilitiesforfinancialreportingpurposesandtheamountsusedfortaxationpurposes.Deferredtaxisnotrecognisedforthefollowingtemporarydifferences:theinitialrecognitionofgoodwill;theinitialrecognitionofassetsorliabilitiesinatransactionthatisnotabusinesscombinationandthataffectsneitheraccountingnortaxableprofit;anddifferencesrelatingtoinvestmentsinsubsidiariestotheextentthatitisprobablethattheywillnotreverseintheforeseeablefuture.Deferredtaxismeasuredatthetaxratesthatareexpectedtobeappliedtothetemporarydifferenceswhentheyreverse,basedonthelawsthathavebeenenactedorsubstantivelyenactedbythereportingdate.

Adeferredtaxassetisrecognisedtotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichthetemporarydifferencescanbeutilised.Deferredtaxassetsarereviewedateachreportingdateandreducedtotheextentthatitisnolongerprobablethattherelatedtaxbenefitwillberealised.

408 409408 409



4 Acquisitionsandbusinessrestructuring

Acquisitions

On16July2010,theCompanytogetherwithACIInternationalPteLtd.(“ACI”)haveestablishedBJCO-IGlassPteLtd.(“BJCO-I”)(jointly-controlledentity)whichwasincorporatedinSingapore,withaproportionof50:50foraninvestingpurpose,theCompanypaidUSDollars107.41millionfortheshares.

Subsequently,BJCO-Iacquiredtheordinarysharesnumbering55millionsharesorequalto100%ofthetotalordinarysharesandredeemablenon-cumulativeconvertiblepreferencesharenumbering0.17millionsharesorequalto100%ofthetotalnumberofredeemablenon-cumulativeconvertiblepreferencesharesofMalayaGlassProductsSdn.,Bhd.,acompanyengagedinglasscontainermanufacturingbusinessforbeers,non-alcoholbeveragesandfoodproductsinMalaysia,bypayingUnitedStated89.3dollarsmillionincashfortheshareswhichtheCompanypaiddirectlyattributableexpensesofBaht36.61million.Afteracquisition,BJCO-IhastotallinginterestinThaiMalayaGlassCompanyLimitedandMalaya-VietnamGlassProductsSdnBhdin35%.Asofthedateofacquisition,thesubsidiariesofjointly-controlledentityhavebeenproportionatelyconsolidatedintheGroup.Theacquiree’snetassetsattheacquisitiondatecomprisedthefollowings:

Cash and cash equivalents 101,954

Trade account receivable 306,236

Inventories 469,619

Other current assets 118,371

Deferred tax assets 38,485

Property, plant and equipment 1,455,083

Intangible assets 1,578

Short-term loan (231,818)

Trade account payable (77,008)

Income tax payable (4,483)

Other current liabilities (121,810)

Long-term loan (809,803)

Other liabilities (10,263)

Net identifiable assets and liabilities 1,236,141

Goodwill on acquisition 1,680,715

Consideration paid 2,916,856

Cash acquired (101,954)

Net cash flow 2,814,902

(in thousand Baht)



TheCompanyiscurrentlyhavingthevalueofproperty,plantandequipmentacquiredinthecombinationappraisedbyanindependentprofessionalvaluer.ThereforetheCompanyhasnotrecognizedtheadjustmenttothefairvalueofthesaidassetsintheconsolidatedfinancialstatementsfortheyearended31December2010.Howeverthemanagementexpectsthatthesaidappraisalwillbecompletedwithin12monthsfromacquisitiondate.

Theconsolidated financial statements of theCompany for the year ended31December 2010 include the financialstatementsofthesaidcompanywhichfinancialstatementswerepreparedbytheirmanagementandhavenotbeenauditedbytheauditors.Accordingtothesaidcompanyhasitsaccountingperiodendedof30September.Thefinancialstatementsfortheyearended30September2010wereauditedbyanotherauditor.Thetotalassetsofthiscompanyrepresent9%oftheconsolidatedassetsasat31December2010andtheprofitofBaht40.72millionfortheperiodfromthedateofacquisitionto31December2010wasincludedintheconsolidatedstatementsofincomefortheyearthenended.

InMay2009,asubsidiaryoftheCompanyacquireda25%interestinGaewGrungThaiCo.Ltd.,acompanyengagedinthetradingofbottles,cullet,plasticandotherusedsupplies,bypayingBaht80millionincashfortheshares.Thesubsidiary’sinterestinthenetassetsoftheacquireeatthedateofacquisitionamountedtoBaht80.38million.

TheconsolidatedfinancialstatementsoftheGroupfortheyearended31December2009includetheGroup’sshareofthenetprofitsofthesaidcompanyfromthedateofacquisitiontotheendofthereportingperiod.

Business restructuring

InJuly2009,theCompanyenteredintoarestructuringtransactionunderwhichtheCompanyacquireda17%interestinT.C.C.TechnologyCompanyLimited(“TCCT”)fromtheultimateparentcompany.AsaresulttheCompany’stotalinterestinTCCTincreasedto51%.TherestructuringtransactionhavebeenpreparedonthebasisofabusinesscombinationundercommoncontrolandaccountedforbytheCompanyinamannersimilartoapoolingofinterests.ThedifferenceofBaht1.05millionbetweentheconsiderationofBaht35.04milliontobepaidbytheCompanyfortheacquisitionofthe17%interestinTCCTandthecarryingamountofthenetidentifiableassetsofTCCTatthedateofthetransactionandattributabletotheCompany’sequityinterestofBaht36.09millionisincludedin“Surplusarisingfrombusinesscombinationundercommoncontrol”.

5 Relatedpartytransactionsandbalances

RelatedpartiesarethosepartieslinkedtotheGroupandtheCompanyasshareholdersorbycommonshareholdersordirectors.Transactionswithrelatedpartiesareconductedatpricesbasedonmarketpricesor,wherenomarketpriceexists,atcontractuallyagreedprices.

RelationshipswithrelatedpartiesthatcontrolorjointlycontroltheCompanyorarebeingcontrolledorjointly-controlledbytheCompanyorhavetransactionswiththeGroupotherthansubsidiariesandassociates(seenotes10and11)wereasfollows:

410 411410 411



1. T.C.C. Holding Company Limited Thailand Major shareholders and co-directors

2. Pol Mun Kong Company Limited Thailand Shareholders

3. Nakornchuen Company Limited Thailand Co-director

4. Beer Thai (1991) Public Company Limited Thailand Co-director

5. Beerthip Brewery (1991) Company Limited Thailand Co-director

6. Cosmos Brewery (Thailand) Company Limited Thailand Co-director

7. Sang Som Company Limited Thailand Co-director

8. Athimart Company Limited Thailand Co-director

9. Kankwan Company Limited Thailand Co-director

10. Theparunothai Company Limited Thailand Co-director

11. Kanchanasingkorn Company Limited Thailand Co-director

12. Luckchai Liquor Trading Company Limited Thailand Co-director

13. Fuengfuanant Company Limited Thailand Co-director

14. S.S. Karnsura Company Limited Thailand Co-director

15. Simathurakij Company Limited Thailand Co-director

16. Thanapakdi Company Limited Thailand Co-director

17. Nateechai Company Limited Thailand Co-director

18. Mongkolsamai Company Limited Thailand Co-director

19. Sura Bangyikhan Company Limited Thailand Co-director

20. Pisetkij Company Limited Thailand Co-director

21. Thai Beverage Recycle Company Limited Thailand Co-director

22. Thai Beverage Public Company Limited Thailand Co-director

23. South East Capital Company Limited Thailand Co-director

24. Southeast Life Insurance Company Limited Thailand Co-director

25. Southeast Assurance Company Limited Thailand Co-director

26. Thai Beverage Marketing Company Limited Thailand Co-director

27. Terragro Company Limited Thailand Co-director

28. United Winery and Distillery Co., Ltd. Thailand Co-director

29. The Chonburi Sugar Corp. Ltd. Thailand Co-director

30. Pan International (Thailand) Co., Ltd. Thailand Co-director

Name of entities Country of incorporation Nature of relationships /nationality



31. North Park Golf And Sport Club Co., Ltd. Thailand Co-director

32. T.C.C. Hotel Collection Co., Ltd. Thailand Co-director

33. Sports and Recreation Enterprise Co., Ltd. Thailand Co-director

34. Wrangyer Beverage (2008) Co., Ltd. Thailand Co-director

35. Eastern Seaboard Industrial Estate (Rayong) Thailand Co-director

Co., Ltd.

36. Wattanapat Trading Company Limited Thailand Co-director

37. Pomthip Company Limited Thailand Co-director

38. Kalae Night Bazaar Co., Ltd. Thailand Co-director

39. Tawanna Night Bazaar Co., Ltd. Thailand Co-director

40. Thai Drink Co., Ltd. Thailand Co-director

41. Thai Beverage Logistics Co., Ltd. Thailand Co-director

42. Plantheon Trading Co., Ltd. Thailand Co-director

43. Phanthamaitree Company Limited Thailand Co-director

44. Food & Fun Co., Ltd. Thailand Co-director

45. Sukhothai PD Co., Ltd. Thailand Co-director

46. Surasate Co., Ltd. Thailand Co-director

47. 28 Commercial Co., Ltd. Thailand Co-director

48. Nice Hotel Co., Ltd. Thailand Co-director

49. Sukhothai Bioenergy Co., Ltd. Thailand Co-director

50. A nantasiri Patana Co.,Ltd. Thailand Common directors and/or common Shareholders

51. Ag-Well Co., Ltd. Thailand Common directors and/or common shareholders

52. At Mediafront Co., Ltd. Thailand Common directors and/or common Shareholders

53. Bangna Pattanakit Co., Ltd. Thailand Common directors and/or common Shareholders

54. Charoenwannakij Co., Ltd. Thailand Common directors and/or common Shareholders

55. Chor. Chana-Anan Panich Co., Ltd. Thailand Common directors and/or common Shareholders

56. Cristalla Co., Ltd. Thailand Common directors and/or common Shareholders

57. Cristalla Engineering Co., Ltd. Thailand Common directors and/or common Shareholders

58. Permkha Commercial Co., Ltd. Thailand Common directors and/or common Shareholders

(Formerly: Dhipaya Sugar (1999) Co., Ltd.)


412 413412 413



59. Golden Wealth Co., Ltd. Thailand Common directors and/or common Shareholders

60. I Laundry Service Co., Ltd. Thailand Common directors and/or common Shareholders

61. Indara Insurance Public Company Limited Thailand Common directors and/or common Shareholders

62. Lan Chang Development Co., Ltd. Thailand Common directors and/or common Shareholders

63. Lastica Co., Ltd. Thailand Common directors and/or common Shareholders

64. Lifestyle Foodcourts Co., Ltd. Thailand Common directors and/or common Shareholders

65. N.C.C. Management & Development Co., Ltd. Thailand Common directors and/or common Shareholders

66. N.C.C. Exhibition Organizer Co., Ltd. Thailand Common directors and/or common Shareholders

67. Natura (2008) Co., Ltd. Thailand Common directors and/or common Shareholders

68. Nongkhai Country Golf Club Co., Ltd. Thailand Common directors and/or common Shareholders

69. Norm Co., Ltd. Thailand Common directors and/or common Shareholders

70. North Park Golf & Sport Creation Co., Ltd. Thailand Common directors and/or common Shareholders

71. Num Kijjakarn Co., Ltd. Thailand Common directors and/or common Shareholders

72. Num Muang Co., Ltd. Thailand Common directors and/or common Shareholders

73. Num Nakorn Co., Ltd. Thailand Common directors and/or common Shareholders

74. Num Palang Co., Ltd. Thailand Common directors and/or common Shareholders

75. Num Thurakij Co., Ltd. Thailand Common directors and/or common shareholders

76. Num Yuk Co., Ltd. Thailand Common directors and/or common shareholders

77. Oishi Group Public Company Limited Thailand Common directors and/or common shareholders

78. Oishi Trading Co., Ltd. Thailand Common directors and/or common shareholders

79. Paksong Capital Co., Ltd. Thailand Common directors and/or common shareholders

80. Plantheon Co., Ltd. Thailand Common directors and/or common shareholders

81. Red Bull Distillery (1988) Co., Ltd. Thailand Common directors and/or common shareholders

82. S.A.S. Trading Co., Ltd. Thailand Common directors and/or common shareholders

83. Service Alliance Co., Ltd. Thailand Common directors and/or common shareholders

84. Siam Food Products Public Company Limited Thailand Common directors and/or common shareholders

85. Siam Realty Co., Ltd. Thailand Common directors and/or common shareholders

86. Siriwana Co., Ltd. Thailand Common directors and/or common shareholders

87. Southeast Group Co., Ltd. Thailand Common directors and/or common shareholders

88. Sura Piset Thipharat Co., Ltd. Thailand Common directors and/or common shareholders




89. T.C.C. Commercial Property Management Co., Ltd. Thailand Common directors and/or common shareholders

90. TCC Capital Land Limited Thailand Common directors and/or common shareholders

91. TCC Hotel Group Co., Ltd. Thailand Common directors and/or common shareholders

92. TCC Hotel Management Co., Ltd. Thailand Common directors and/or common shareholders

93. TCC Land Co., Ltd. Thailand Common directors and/or common shareholders

94. TCC Land Commercial Co., Ltd. Thailand Common directors and/or common shareholders

95. TCC Land Development Co., Ltd. Thailand Common directors and/or common shareholders

96. TCC Land Industrial and Logistics Co., Ltd. Thailand Common directors and/or common shareholders

97. TCC Land Industrial Co., Ltd. Thailand Common directors and/or common shareholders

98. TCC Land International (Thailand) Co., Ltd. Thailand Common directors and/or common shareholders

99. TCC Land International Co., Ltd. Thailand Common directors and/or common shareholders

100. TCC Land Laser Co., Ltd. Thailand Common directors and/or common shareholders

101. TCC Land Logistics Co., Ltd. Thailand Common directors and/or common shareholders

102. TCC Land Retel Co., Ltd. Thailand Common directors and/or common shareholders

103. TCC Luxury Hotels and Resort Co., Ltd. Thailand Common directors and/or common shareholders

104. TCC Property Development Co., Ltd. Thailand Common directors and/or common shareholders

105. TCC Value Hotels Co., Ltd. Thailand Common directors and/or common shareholders

106. TCCCL Krungthon Co., Ltd. Thailand Common directors and/or common shareholders

107. TCCCL Narathiwad Co., Ltd. Thailand Common directors and/or common Shareholders

108. TCCCL North Park Company Limited Thailand Common directors and/or common shareholders

109. TCCCL Wireless Co., Ltd. Thailand Common directors and/or common shareholders

110. Terragro Bio-Tech Co., Ltd. Thailand Common directors and/or common shareholders

111. Terragro Development Co., Ltd. Thailand Common directors and/or common shareholders

112. Terragro Fertilizer Co., Ltd. Thailand Common directors and/or common shareholders

113. Terragro Technology Co., Ltd. Thailand Common directors and/or common shareholders

114. Thai Agro Products Co., Ltd. Thailand Common directors and/or common shareholders

115. Thai Alcohol Public Company Limited Thailand Common directors and/or common shareholders

116. The Grand Luang Prabang Co., Ltd. Thailand Common directors and/or common shareholders

117. The Suphanburi Sugar Industry Co., Ltd. Thailand Common directors and/or common shareholders

118. The Uttaradit Sugar Industry Co., Ltd. Thailand Common directors and/or common shareholders


414 415414 415



119. Thippattana Arcade Co., Ltd. Thailand Common directors and/or common shareholders

120. Univentures Public Company Limited Thailand Common directors and/or common shareholders

121. Wiengsiri Co., Ltd. Thailand Common directors and/or common shareholders

122. World Book and Media Co., Ltd. Thailand Common directors and/or common shareholders

123. Nimi Sukhothai Co., Ltd. Thailand Common directors and/or common shareholders

124. Dhanasindhi Co., Ltd. Thailand Common directors and/or common shareholders

125. DhosPaak Co., Ltd. Thailand Common directors and/or common shareholders

126. Num Thip Co., Ltd. Thailand Common directors and/or common shareholders

127. Numrungrod Co., Ltd. Thailand Common directors and/or common shareholders

128. Baanboung Vetchakij Co., Ltd. Thailand Common directors and/or common shareholders

129. T.C.C. Service Apartment Co., Ltd Thailand Common directors and/or common shareholders

130. TCCCL Rachatewi Co., Ltd. Thailand Common directors and/or common Shareholders

131. TCCCL Sukhumvit 24 Co., Ltd. Thailand Common directors and/or common Shareholders

132. TCCCL Asoke Co., Ltd. Thailand Common directors and/or common Shareholders

133. Siripat Trading Co., Ltd. Thailand Common directors and/or common Shareholders

134. Sahapanyphant (2002) Co., Ltd Thailand Common directors and/or common Shareholders

135. Bangna Glass Co., Ltd. Thailand Common directors and/or common Shareholders

136. Pridiprapa Co., Ltd. Thailand Common directors and/or common Shareholders

137. Thai Beverage Energy Co., Ltd. Thailand Common directors and/or common Shareholders

138. TCCCL Sena Co., Ltd. Thailand Common directors and/or common Shareholders

139. The Maewang Sugar Industry Co., Ltd Thailand Common directors and/or common Shareholders

140. Eastern Chemical Co., Ltd. Thailand Common directors and/or common Shareholders

141. Asset Management Advisory Co., Ltd. Thailand Common directors and/or common Shareholders

142. Grand Unity Development Co., Ltd. Thailand Common directors and/or common Shareholders

143. Grand U Living Co., Ltd. Thailand Common directors and/or common Shareholders

144. TCC PD 11 Co., Ltd. Thailand Common directors and/or common Shareholders

145. Ball Corporation United States Major shareholder of subsidiary’s Shareholder




Thepricingpoliciesforparticulartypesoftransactionsareexplainedfurtherbelow:

Sale of goods and rendering of services Goods and services plus margin

Purchase of goods and receiving of services Market price net of mark up margin of the Company

Income from allocation of administrative expenses Allocated from the actual cost occurred

Rental and services incomes Contractually agreed prices

Rental and services expenses Contractually agreed prices

License and technical assistant expenses Contractually agreed prices

Other income and other expenses Contractually agreed prices

Interest income and interest expense Interest rates are charged at the borrowing cost and market rates

Significanttransactionsfortheyearsended31December2010and2009withrelatedpartieswereasfollows:

Subsidiaries

Sales of goods and rendering of services - - 86,075 146,314

Purchases of goods and receiving of services - - 12,311,760 11,616,886

Rental and services incomes - - 60,477 60,687

Income from allocation of administrative expenses - - 110,032 91,842

Rental and services expenses - - 929 929

Interest income - - 117,291 124,082

Interest expense - - 7,009 5,555

Associates

Sales of goods and rendering of services 6,367 2,940 107 84

Purchases of goods and receiving of services 1,039,531 836,680 26 -

Rental and services incomes 2,104 1,857 2,104 1,857

Income from allocation of administrative expenses 404 156 404 156


Sales of goods and rendering of services 5,163,610 4,360,886 3,955,447 3,346,700

Purchases of goods and receiving of services 315,311 289,059 - -

Purchase spare part and equipment 5,026 15,141 - -

Transactions Pricing policies

Consolidated Separate financial statements financial statements 2010 2009 2010 2009 (inthousandBaht)

416 417416 417



License fee 23,578 24,592 - -

Other incomes 9,123 13,201 - -

Rental incomes 9 760 - -

Rental and service expenses 43,739 13,519 33,474 -

TheCompanypaiddirectors’remunerationanddirectors’bonusestodirectorsfortheyearended31December2010intheamountofBaht16million(2009: Baht 14 million).

Balancesasat31December2010and2009withrelatedpartieswereasfollows:

Subsidiaries - - 27,265 15,189

Associates 4,127 1,073 14 20

Other related parties 918,251 841,426 795,188 722,953

Total 922,378 842,499 822,467 738,162

Comprising:

Other receivables from related parties 1,585 201 82,891 43,848

Short-term loans to related parties - - 68,000 366,298

Total 1,585 201 150,891 410,146


Associates 1,585 201 512 201

Total 1,585 201 82,891 43,848


2010 2009 2010 2009 (inthousandBaht)

Consolidated Separate financial statements financial statements

2010 2009 2010 2009 (inthousandBaht)


2010 2009 2010 2009 (inthousandBaht)


Trade accounts receivable from related parties

Short-term loans to and other

receivable from related parties

Other receivables from related parties



Current portion of long-term loans

Subsidiaries

Berli Jucker Cellox Limited 3.90 - - - 900,000 -

Thai Glass Industries Public Company

Limited 3.90 - - - 1,600,000 -

Rubia Industries Limited 3.90 - - - 100,000 -

Berli Jucker Foods Limited 3.90 - - - 200,000 -

- - 2,800,000 -

Short-term loans

Subsidiaries

Berli Jucker Cellox Limited 1.60 1.75 - - 6,000 160,000


Limited - 1.75 - - - 150,000

Berli Jucker Foods Limited 1.60 1.80 - 3.00 - - 20,000 48,200

T.C.C. Technology Company Limited 1.85 - - - 42,000 -

BJC International Company Limited - 1.75 - - - 8,098

- - 68,000 366,298

Long-term loans

Subsidiaries

Berli Jucker Cellox Limited - 3.90 - - - 900,000


Limited - 3.90 - - - 1,600,000

Rubia Industries Limited - 3.90 - - - 100,000

Berli Jucker Foods Limited - 3.90 - - - 200,000

- - - 2,800,000

Interest rate Consolidated Separate financial statements financial statements 2010 2009 2010 2009 2010 2009 (%perannum) (inthousandBaht)

Loans to related parties

418 419418 419



Summaryofloanstorelatedparties

Current portion of long-term loans - - 2,800,000 -

Short-term loans - - 68,000 366,298

Long-term loans - - - 2,800,000

Total loans to related parties, net - - 2,868,000 3,166,298

Movementsduringtheyearsended31December2010and2009ofloanstorelatedpartieswereasfollows:

Current portion of long-term loans

Subsidiaries

At 1 January - - - -

Transfer from long-term loans - - 2,800,000 -

At 31 December - - 2,800,000 -

Short-term loans

Subsidiaries

At 1 January - - 366,298 1,024,485

Increase - - 79,702 195,798

Decrease - - (378,000) (853,985)

At 31 December - - 68,000 366,298

2010 2009 2010 2009 (inthousandBaht)


2010 2009 2010 2009 (inthousandBaht)

Consolidated Separate financial statements financial statementsLoans to related parties



Loans to related parties

Long-term loans

At 1 January - - 2,800,000 2,800,000

Transfer to current portion of long-term loans - - (2,800,000) -

At 31 December - - - 2,800,000

Subsidiaries - - 2,230,548 2,015,036

Associates 225,134 177,693 - -

Other related parties 27,753 24,565 - -

Total 252,887 202,258 2,230,548 2,015,036

Comprising:

Other payables to related parties 5,269 1,032 19,111 51,201

Short-term loans from related parties - - 1,008,189 731,145

Total 5,269 1,032 1,027,300 782,346


Associates - 4 - -

Other related parties 5,269 1,028 4,283 -

Total 5,269 1,032 19,111 51,201

2010 2009 2010 2009 (inthousandBaht)


2010 2009 2010 2009 (inthousandBaht)


2010 2009 2010 2009 (inthousandBaht)


2010 2009 2010 2009 (inthousandBaht)


Trade accounts payable to related parties

Short-term loans from and other

payable to related parties

Other payables to related parties

420 421420 421



Movementsduringtheyearsended31December2010and2009ofloansfromrelatedpartieswereasfollows:

Short-term loans

Subsidiaries

BJC Marketing Company Limited 1.00 0.75 - - 83,230 92,130

BJC Healthcare Company Limited 1.00 0.75 - - 287,500 284,900

Berli Jucker Specialties Limited 1.00 0.75 - - 32,803 51,767

BJC Industrial and Trading Company Limited 1.00 0.75 - - 235,000 192,000

Thai Flourspar & Minerals Company Limited 0.88 0.88 - - 5,300 5,300

Berli Jucker Logistics Limited 1.00 0.75 - - 16,700 48,200

Montana Company Limited 1.00 0.75 - - 82,800 14,700

BJC International Company Limited 1.00 0.75 - - 6,126 9,448

Rubia Industries Limited 1.00 0.75 - - 33,730 32,700

Thai-Scanic Steel Company Limited 1 - 1.85 - - - 225,000 -

Short-term loans from related parties - - 1,008,189 731,145

Short-term loans

Subsidiaries

At 1 January - - 731,145 305,341

Increase - - 3,507,601 447,342

Decrease - - (3,230,557) (21,538)

At 31 December - - 1,008,189 731,145

Interest rate Consolidated Separate financial statements financial statements 2010 2009 2010 2009 2010 2009 (%perannum) (inthousandBaht)

2010 2009 2010 2009 (inthousandBaht)


Loans from related parties

Loans from related parties



Otherbalancesofassetsandliabilitiesasat31December2010and2009withotherrelatedpartieswereasfollows:

Other current assets 2,032 141 - -

Other assets 1,006 740 - -

Other current liabilities 16,026 10,477 - -

Other liabilities 13,906 12,509 - -

Significant agreements with related parties

IT Service Agreement

T.C.C.TechnologyCo.,Ltd.,asubsidiarycompany,enteredintoserviceagreementswithvariousrelatedcompaniesfortheprovisionofongoingsupport,maintenanceofsystemsandITequipmentrentalunderthepricesandconditionsstatedintheagreements.

Glass bottle purchase and sale agreement

TheCompanyenteredintoaglassbottlepurchaseandsaleagreementwithThaiBeverageRecycleCompanyLimited,arelatedparty,topurchase/sellglassbottlesforaperiodofthreeyears,effectivefrom1January2010to31December2012underthepriceandconditionsstatedinthecontract.

Technical Assistance Agreement

ThaiBeverageCanLtd.,asubsidiarycompany,enteredintoatechnicalagreementwithaforeignrelatedparty,BallCorporation,wherebythelatterprovidesthesubsidiarywithtechnicalandconsultingservices.Thesubsidiaryiscommittedtopaythetechnicalandconsultingfeesinaccordancewiththeagreement.

License Agreement

ThaiBeverageCanLtd.,asubsidiarycompany,enteredintoalicenseagreementwithitsforeignrelatedparty,BallCorporation,underwhichthelatterprovidesthesubsidiarywithlicensedtechnology.ThesubsidiaryiscommittedtopayannualfixedroyaltyfeeofUSD125,000fortheperiodfrom10September2002to31December2007andthen,from1January2008to31December2022,thesubsidiaryhastopayannualminimumroyaltyfeeplusvariablefeebasedonthetotalquantityofsetsmanufacturedandsoldbythesubsidiary.Asat31December2010and2009,thesubsidiaryhadcommitmentforannualminimumroyaltyfeeoverthetermofagreementpayableasfollows:

2010 2009 2010 2009 (inthousandBaht)


422 423422 423



Minimumannualroyaltyfee

Within one year 220,000 220,000 - -

After one year but within five years 1,030,000 980,000 - -

After five years 2,140,000 2,410,000 - -

Total 3,390,000 3,610,000 - -

Other commitments

Non-cancellable operating lease commitments

Within one year 82,776 32,789 19,860 18,791

After one year but within five years 83,640 53,147 36,711 31,718

Total 166,416 85,936 56,571 50,509

Contingent liabilities

Asat31December2010,theCompanywascontingentlyliabletofinancialinstitutionsforguaranteeingcreditfacilitiesobtainedbyitssubsidiariesandassociatestotalingBaht674million(2009: Baht 593 million).

2010 2009 2010 2009 (inUSDollars)


2010 2009 2010 2009 (inthousandBaht)




6 Cashandcashequivalents

Thecurrencydenominationofcashandcashequivalentsasat31Decemberwasasfollows:

Cash on hand 2,048 1,701 461 695

Cash at banks - current accounts 308,416 115,077 59,945 63,896

Cash at banks - savings accounts 759,466 566,418 311,440 374,690

Highly liquid short-term investments 130,000 157,876 130,000 -

Cheques on hand 23,836 - 23,836 -

Total 1,223,766 841,072 525,682 439,281

Thai Baht (THB) and other

functional currencies of foreign subsidiaries 1,025,637 830,136 525,474 437,371

United States Dollars (USD) 165,963 10,879 208 1,910

Euro (EUR) 9,663 57 - -

Others 22,503 - - -

Total 1,223,766 841,072 525,682 439,281

2010 2009 2010 2009 (inthousandBaht)


2010 2009 2010 2009 (inthousandBaht)


424 425424 425



7 Tradeaccountsreceivable


Note 2010 2009 2010 2009 (inthousandBaht)

Related parties 5 922,378 842,499 822,467 738,162

Other parties 4,536,114 3,744,071 3,076,856 2,675,027

Installment receivables 79,965 107,051 67,108 79,893

Less unearned interest on installment contracts (4,240) (2,284) (4,240) (2,277)

5,534,217 4,691,337 3,962,191 3,490,805

Less allowance for doubtful accounts (143,813) (129,713) (98,019) (89,376)

Total 5,390,404 4,561,624 3,864,172 3,401,429

Bad and doubtful debts expenses for the year 14,099 8,625 14,761 13,856

Aginganalysesfortradeaccountsreceivablewereasfollows:

Related parties

Within credit terms 453,313 666,719 808,189 734,667

Overdue:

Less than 3 months 415,119 165,846 13,516 3,427

3 - 6 months 40,038 6,212 439 64

6 - 12 months 7,389 1,249 259 4

Over 12 months 6,519 2,473 64 -

Total 922,378 842,499 822,467 738,162

Other parties

Within credit terms 2,819,126 2,657,178 2,054,094 1,769,418

Overdue:

Less than 3 months 1,477,892 973,106 894,978 821,789

3 - 6 months 169,118 94,358 96,448 80,621

6 - 12 months 45,554 18,801 26,482 11,149

Over 12 months 100,149 105,395 67,722 69,666

4,611,839 3,848,838 3,139,724 2,752,643


4,468,026 3,719,125 3,041,705 2,663,267

Net 5,390,404 4,561,624 3,864,172 3,401,429

2010 2009 2010 2009 (inthousandBaht)


ThenormalcredittermgrantedbytheGrouprangesfrom45daysto75days.




functional currencies of foreign subsidiaries 5,239,080 4,477,120 3,927,024 3,464,917

United States Dollars (USD) 163,222 172,234 5,131 22,487

Euro (EUR) 42,520 3,528 29,922 3,401

Singapore Dollars (SGD) 33,721 - - -

Others 55,674 38,455 114 -

Total 5,534,217 4,691,337 3,962,191 3,490,805

8 Inventories

Finished goods 2,095,797 1,659,007 984,525 802,093

Work in progress 199,815 212,113 - -

Raw materials and packaging materials 1,158,525 1,514,822 3,909 568

Assemblies and spare parts 839,104 785,243 6,629 9,361

Other materials 56,249 43,441 - -

Goods in transit 341,802 416,593 71,145 75,706

4,691,292 4,631,219 1,066,208 887,728

Less allowance for obsolete and slow-moving inventories (225,156) (129,581) (79,251) (64,765)

Net 4,466,136 4,501,638 986,957 822,963

Thecostofinventorieswhichisrecognizedasanexpenseandincludedin‘costofsaleofgoods’fortheyearended31December2010amountedtoBaht18,630million(2009: Baht 17,290 million).

2010 2009 2010 2009 (inthousandBaht)


2010 2009 2010 2009 (inthousandBaht)


Thecurrencydenominationoftradeaccountsreceivableasat31Decemberwasasfollows:

426 427426 427



9 Othercurrentassets

Purchase value added tax 38,545 31,360 10,837 3,972

Withholding tax 45,992 28,615 - -

Prepaid expenses 45,818 49,770 5,581 4,464

Farmer receivables 24,955 27,834 - -

Advance payments 131,192 55,288 94,920 35,359

Unbilled work in progress 93,465 90,107 93,465 90,107

Fair value adjustments on derivatives 1,072 9,872 671 -

Other receivables 5 128,868 129,525 52,004 48,064

Others 148,008 42,795 3,047 15,212

657,915 465,166 260,525 197,178


Net 610,235 416,486 214,951 151,604

Reversal of bad and doubtful debts

expenses for the year (1,000) - - -





10 Investmentsinsubsidiariesandjointly-controlledentity

Subsidiaries

At 1 January 7,056,778 6,495,470

Acquisition - 55,544

Increase in share capital of subsidiary 537,056 438,997

Transfer from business restructuring - 61,200

Reversal of allowance for impairment - 5,567

At 31 December 7,593,834 7,056,778


At 1 January - -

Acquisition 3,513,340 -

At 31 December 3,513,340 -

Total

At 1 January 7,056,778 6,495,470

Acquisition 3,513,340 55,544

Increase in share capital of subsidiary 537,056 438,997

Transfer from business restructuring - 61,200

Reversal of allowance for impairment - 5,567

At 31 December 11,107,174 7,056,778

2010 2009 (inthousandBaht)

Separate financial statements

428 429428 429

Investmentsinsubsidiariesandjointly-controlledentityasat31Decem

ber2010and2009,anddividendincomefromthoseinvestmentsforthe

yearsthenendedwereasfollows:

Subs

idia

ries

Mon

tana

Com

pany

Limite

d 98

.80

98.80

500

500

494

494

- -

494

494

8,70

2 -

Berli

Juck

er Foo

ds Li

mite

d 10

0.00

10

0.00

32

0,00

0 32

0,00

0 32

0,04

1 32

0,04

1 -

- 32

0,04

1 32

0,04

1 36

,738

21

,344

Rubia

Inve

stmen

ts Lim

ited

10

0.00

10

0.00

30

,000

30

,000

30

,000

30

,000

-

- 30

,000

30

,000

-

-Be

rli Ju

cker Lo

gistics

Limite

d 10

0.00

10

0.00

50

,000

50

,000

50

,000

50

,000

-

- 50

,000

50

,000

25

,000

15

,000

BJC

Marke

ting

Compa

ny Li

mite

d 10

0.00

10

0.00

10

0,00

0 10

0,00

0 10

2,55

0 10

2,55

0 -

- 10

2,55

0 10

2,55

0 -

-BJ

C He

althca

re C

ompa

ny Li

mite

d 10

0.00

10

0.00

20

0,00

0 20

0,00

0 20

0,00

0 20

0,00

0 -

- 20

0,00

0 20

0,00

0 64

,000

11

7,60

0BJ

C Indu

strial a

nd Tr

ading

Compa

ny Li

mite

d

100.00

10

0.00

25

0,00

0 25

0,00

0 25

0,00

0 25

0,00

0 -

- 25

0,00

0 25

0,00

0 -

-Th

ai Floursp

ar &

Minerals C

ompa

ny Li

mite

d 10

0.00

10

0.00

2,00

0 2,00

0 1,99

9 1,99

9 -

- 1,99

9 1,99

9 -

-BJ

C Internat

iona

l Com

pany

Limite

d 10

0.00

10

0.00

25

,000

25

,000

25

,000

25

,000

-

- 25

,000

25

,000

-

-Be

rli Ju

cker (M

yanm

ar) L

imite

d 10

0.00

10

0.00

1,00

0,00

0*

1,00

0,00

0*

2,07

6 2,07

6 (2,076

) (2,076

) -

- -

-BJ

C Internat

iona

l Com

pany

Limite

d 10

0.00

10

0.00

54

6,91

2 9,85

6 54

6,91

2 9,85

6 -

- 54

6,91

2 9,85

6 -

-Ru

bia

Indu

stries L

imite

d

99.76

99.76

70,000

70

,000

77

,123

77

,123

-

- 77

,123

77

,123

43

,994

22

,764

Berli

Juck

er Spe

cialtie

s Lim

ited

98.30

98.30

63,875

63

,875

70

,504

70

,504

-

- 70

,504

70

,504

17

,617

17

,042

Thai G

lass

Indu

stries P

ublic

Com

pany

Limite

d 98

.59

98.59

1,17

0,00

0 1,17

0,00

0 3,50

4,45

3 3,50

4,45

3 -

- 3,50

4,45

3 3,50

4,45

3 20

1,87

1 -

Berli

Juck

er C

ellox Lim

ited

94

.84

94.84

900,00

0 90

0,00

0 1,03

9,53

1 1,03

9,53

1 -

- 1,03

9,53

1 1,03

9,53

1 85

,355

-

T.C.C

. Tec

hnolog

y Co

mpa

ny Li

mite

d 51

.00

51.00

180,00

0 18

0,00

0 96

,237

96

,237

-

- 96

,237

96

,237

10

,557

6,12

0Th

ai Bev

erag

e Ca

n Lim

ited

50.00

50.00

1,00

0,00

0 1,00

0,00

0 1,07

4,00

0 1,07

4,00

0 -

- 1,07

4,00

0 1,07

4,00

0 60

,500

40

,000

Thai-Sca

ndic Steel C

ompa

ny Li

mite

d 34

.13

34.13

586,00

0 58

6,00

0 20

0,00

0 20

0,00

0 -

- 20

0,00

0 20

0,00

0 -

-Marble

& Ston

es C

ompa

ny Li

mite

d 5.00

5.00

99

,800

99

,800

4,99

0 4,99

0 -

- 4,99

0 4,99

0 -

-To

tal

7,59

5,91

0 7,05

8,85

4 (2

,076

) (2

,076

) 7,59

3,83

4 7,05

6,77

8 55

4,33

4 23

9,87

0

Jointly

-con

trolled

entit

yBJ

C O-I

Pte

Ltd.

50.00

- 25

7,92

6**

- 3,51

3,34

0 -

- -

3,51

3,34

0 -

- -

Tota

l

11

,209

,250

7,05

8,85

4 (2

,076

) (2

,076

) 11

,107

,174

7,05

6,77

8 55

4,33

4 23

9,87

0

Sepa

rate

fina

ncia

l sta

tem

ents

20

10

2009

20

10

2009

20

10

2009

20

10

2009

20

10

2009

20

10

2009

(%

)(in

thou

sand

Bah

t)

O

wne

rshi

pin

tere

st

Paid

-up

capi

tal

Cos

tmet

hod

Impa

irmen

tAt

cos

t-ne

tDi

vide

ndin

com

e

*Kya

tscu

rrenc

y**U

nited

Stat

escurrenc

y

Berli

Juc

ker P

ublic

Com

pany

Lim

ited

and

its S

ubsi

diar

ies

Not

es to

the

finan

cial

sta

tem

ents

For t

he y

ears

end

ed 3

1 De

cem

ber 2

010

and

2009



Significantmovementsduringtheyearended31December2010ofinvestmentinsubsidiarieswereasfollows:

On28 June2010,BJC InternationalCompanyLimited receivedpayment of the remainingunpaidportion its sharecapitalinamountingtoHKD45.79million.Subsequently,on29June2010,theCompanyincreaseditspaid-upsharecapitalfromHKD100milliontoHKD200millionforanincreaseinthecapitalofThaiCorpInternationalCompanyLimitedandBJCGlassCompanyLimited,theCompany’sindirectsubsidiaries.TheCompanyreceivedpartialpaymentfortheincreaseinitsauthorisedsharecapitalinamountingtoHKD84.94millioninDecember2010.

11 Investmentsinassociates

At 1 January 398,538 301,407 231,913 293,113

Share of net profits of investments - equity method 62,220 63,732 - -

Acquisition - 80,000 - -

Transfer due to business restructuring - - - (61,200)

Dividend income (48,559) (46,601) - -

At 31 December 412,199 398,538 231,913 231,913

2010 2009 2010 2009 (inthousandBaht)


430 431430 431

Investmentsinassociatesasat31December2010and2009,anddividendincomefromthoseinvestmentsfortheyearsthenendedwereasfollows:

BJC

Marine

Reso

urce

s Dev

elop

men

t Com

pany

Limite

d 49

.99

49.99

94,400

94

,400

52

,372

52

,372

12

,530

12

,243

-

-

Berli

Asiatic

Sod

a Co

mpa

ny Li

mite

d 50

.00

50.00

40,000

40

,000

24

,872

24

,872

37

,193

31

,161

23

,999

36

,801

Berli

Dyna

plas

t Com

pany

Limite

d 49

.00

49.00

303,93

3 30

3,93

3 19

5,06

9 19

5,06

9 27

9,40

8 27

2,93

1 23

,520

9,80

0

Gae

w G

rung

Thai C

ompa

ny Li

mite

d 25

.00

25.00

320,00

0 32

0,00

0 80

,000

80

,000

83

,068

82

,203

1,04

0 -

Tota

l

35

2,31

3 35

2,31

3 41

2,19

9 39

8,53

8 48

,559

46

,601

Con

solid

ated

fina

ncia

l sta

tem

ents

20

10

2009

20

10

2009

20

10

2009

20

10

2009

20

10

2009

(%

)(in

thou

sand

Bah

t)

Ow

ners

hip

inte

rest

Pa

id-u

pca

pita

lC

ostm

etho

dEq

uity

met

hod

Divi

dend

inco

me

BJC

Marine

Reso

urce

s Dev

elop

men

t

Co

mpa

ny Li

mite

d

49.99

49.99

94,400

94

,400

52

,372

52

,372

(40,40

0)

(40,40

0)

11,972

11

,972

-

-

Berli

Asiatic

Sod

a Co

mpa

ny Li

mite

d

50.00

50.00

40,000

40

,000

24

,872

24

,872

-

- 24

,872

24

,872

23

,999

36

,801

Berli

Dyna

plas

t Com

pany

Limite

d 49

.00

49.00

303,93

3 30

3,93

3 19

5,06

9 19

5,06

9 -

- 19

5,06

9 19

5,06

9 23

,520

9,80

0

Tota

l

27

2,31

3 27

2,31

3 (4

0,40

0)

(40,40

0)

231,91

3 23

1,91

3 47

,519

46

,601

Sepa

rate

fina

ncia

l sta

tem

ents

20

10

2009

20

10

2009

20

10

2009

20

10

2009

20

10

2009

20

10

2009

(%

)(in

thou

sand

Bah

t)

O

wne

rshi

pin

tere

st

Paid

-up

capi

tal

Cos

tmet

hod

Impa

irmen

tAt

cos

t-ne

tDi

vide

ndin

com

e

Berli

Juc

ker P

ublic

Com

pany

Lim

ited

and

its S

ubsi

diar

ies

Not

es to

the

finan

cial

sta

tem

ents

For t

he y

ears

end

ed 3

1 De

cem

ber 2

010

and

2009



12 Otherlong-terminvestments

Otherlong-terminvestmentsasat31December2010and2009comprisedgeneralinvestmentsinequitysecuritiesasfollows:

Siam Cement Myanmar

Trading Ltd. 15.00 15.00 1,320* 1,320* 837 837 837 837

Cost method

2010 2009 2010 2009 2010 2009 2010 2009 (%) (inthousandKyats) (inthousandBaht)

Ownershipinterest Paid-upcapital Consolidated Separate financialstatements financialstatements

* Kyats currency

432 433432 433

13P

rope

rty,p

lant

and

equ

ipm

ent

(a

) Th

e G

roup

Cost

At 1 Jan

uary 200

9 2,14

9,78

1 3,51

7,70

6 14

,563

,817

1,16

7,28

2 13

8,47

6 43

6,65

9 21

,973

,721

Additio

ns

382

4,62

8 22

2,68

1 78

,803

26

,164

37

8,27

7 71

0,93

5

Transfers

- 73

,657

38

8,22

4 22

,732

-

(494

,374

) (9,761

)

Disp

osals

- (10,47

6)

(57,78

8)

(39,25

7)

(21,98

7)

- (129

,508

)

Written-

off

- (3,702

) (27,51

3)

(15,88

5)

(42)

- (47,14

2)

Effect o

f mov

emen

t in ex

chan

ge ra

tes

- (1,522

) (3,139

) (1,231

) (398

) -

(6,290

)

At 31 De

cem

ber 2

009 an

d 1 Ja

nuar

y 20

10

2,15

0,16

3 3,58

0,29

1 15

,086

,282

1,21

2,44

4 14

2,21

3 32

0,56

2 22

,491

,955

Additio

ns

113,64

6 7,72

5 17

6,96

2 43

,279

15

,730

75

3,86

0 1,11

1,20

2

Acqu

isitio

ns th

roug

h bu

sines

s com

bina

tion

77,959

17

8,10

2 1,06

5,30

6 5,06

0 7,02

8 12

1,62

8 1,45

5,08

3

Transfers

(404

) 6,11

7 35

0,26

5 5,85

5 -

(362

,170

) (337

)

Disp

osals

- (914

) (60,09

5)

(9,436

) (10,90

2)

- (81,34

7)

Written-

off

- -

(106

,594

) (30,80

2)

- (4,704

) (142

,100

)

Effect o

f mov

emen

t in ex

chan

ge ra

tes

(1,144

) (8,591

) (26,17

5)

475

229

(50,75

3)

(85,95

9)

At 31 De

cem

ber 2

010

2,34

0,22

0 3,76

2,73

0 16

,485

,951

1,22

6,87

5 15

4,29

8 77

8,42

3 24

,748

,497

Con

solid

ated

fina

ncia

l sta

tem

ents

Furn

iture

,

Bu

ildin

gsa

nd

fix

ture

s

Land

and

land

bu

ildin

gM

achi

nery

and

an

dof

fice

As

sets

und

er

impr

ovem

ent

impr

ovem

ent

equi

pmen

teq

uipm

ent

Vehi

cles

co

nstru

ctio

nTo

tal

(inth

ousa

ndB

aht)

Berli

Juc

ker P

ublic

Com

pany

Lim

ited

and

its S

ubsi

diar

ies

Not

es to

the

finan

cial

sta

tem

ents

For t

he y

ears

end

ed 3

1 De

cem

ber 2

010

and

2009


Accu

mulat

ed d

epre

ciat

ion

At 1 Jan

uary 200

9 33

,429

1,84

9,63

0 6,92

3,52

8 96

9,12

0 83

,835

-

9,85

9,54

2

Deprec

iatio

n ch

arge

for the

yea

r 1,60

3 15

4,96

4 1,05

8,89

9 79

,175

15

,021

-

1,30

9,66

2

Transfers

- -

1,00

2 (1,156

) -

- (154

)

Disp

osals

- (10,13

0)

(56,98

6)

(30,62

5)

(13,19

4)

- (110

,935

)

Written-

off

- (693

) (7,795

) (14,67

3)

(41)

- (23,20

2)

At 31 De

cem

ber 2

009 an

d 1 Ja

nuar

y 20

10

35,032

1,99

3,77

1 7,91

8,64

8 1,00

1,84

1 85

,621

-

11,034

,913

Deprec

iatio

n ch

arge

for the

yea

r 1,59

7 15

7,05

3 1,14

5,01

0 67

,680

16

,567

-

1,38

7,90

7

Transfers

- -

(3,335

) (9)

- 3,30

0 (44)

Disp

osals

- (914

) (59,64

3)

(10,48

7)

(7,077

) -

(78,12

1)

Written-

off

- -

(104

,876

) (30,67

1)

- -

(135

,547

)

At 31 De

cem

ber 2

010

36,629

2,14

9,91

0 8,89

5,80

4 1,02

8,35

4 95

,111

3,30

0 12

,209

,108

Con

solid

ated

fina

ncia

l sta

tem

ents

Furn

iture

,

Bu

ildin

gsa

nd

fix

ture

s

Land

and

land

bu

ildin

gM

achi

nery

and

an

dof

fice

As

sets

und

er

impr

ovem

ent

impr

ovem

ent

equi

pmen

teq

uipm

ent

Vehi

cles

co

nstru

ctio

nTo

tal

(inth

ousa

ndB

aht)

Berli

Juc

ker P

ublic

Com

pany

Lim

ited

and

its S

ubsi

diar

ies

Not

es to

the

finan

cial

sta

tem

ents

For t

he y

ears

end

ed 3

1 De

cem

ber 2

010

and

2009

434 435434 435

Allowan

ce fo

r im

pairm

ent

At 1 Jan

uary 200

9 -

2,65

8 1,94

5 18

-

7,69

8 12

,319

Increa

se

- 2,11

2 -

- -

- 2,11

2

Decrea

se

- -

(900

) -

- (7,698

) (8,598

)

At 31 De

cem

ber 2

009 an

d 1 Ja

nuar

y 20

10

- 4,77

0 1,04

5 18

-

- 5,83

3

Increa

se

- 55

-

- -

- 55

Decrea

se

- -

- -

- -

-

At 31 De

cem

ber 2

010

- 4,82

5 1,04

5 18

-

- 5,88

8

Net

boo

k va

lue

At 1 Jan

uary

200

9 2,11

6,35

2 1,66

5,41

8 7,63

8,34

4 19

8,14

4 54

,641

42

8,96

1 12

,101

,860

At 31 De

cem

ber 2

009 an

d 1 Ja

nuar

y 20

10

2,11

5,13

1 1,58

1,75

0 7,16

6,58

9 21

0,58

5 56

,592

32

0,56

2 11

,451

,209

At 31 De

cem

ber 2

010

2,30

3,59

1 1,60

7,99

5 7,58

9,10

2 19

8,50

3 59

,187

77

5,12

3 12

,533

,501

Con

solid

ated

fina

ncia

l sta

tem

ents

Furn

iture

,

Bu

ildin

gsa

nd

fix

ture

s

Land

and

land

bu

ildin

gM

achi

nery

and

an

dof

fice

As

sets

und

er

impr

ovem

ent

impr

ovem

ent

equi

pmen

teq

uipm

ent

Vehi

cles

co

nstru

ctio

nTo

tal

(inth

ousa

ndB

aht)

Berli

Juc

ker P

ublic

Com

pany

Lim

ited

and

its S

ubsi

diar

ies

Not

es to

the

finan

cial

sta

tem

ents

For t

he y

ears

end

ed 3

1 De

cem

ber 2

010

and

2009


(b

) Th

e C

ompan

y

Cost

At 1 Jan

uary 200

9 64

,410

71

8,12

9 3,40

9 57

8,61

5 40

,756

3,79

0 1,40

9,10

9

Additio

ns

- -

11,916

16

,205

23

,155

8,78

9 60

,065

Transfers

- -

- 11

,779

-

(11,77

9)

-

Disp

osals

- -

(816

) (895

) (4,004

) -

(5,715

)

Written-

off

- -

(473

) (7,807

) -

- (8,280

)

At 31 De

cem

ber 2

009 an

d 1 Ja

nuar

y 20

10

64,410

71

8,12

9 14

,036

59

7,89

7 59

,907

80

0 1,45

5,17

9

Additio

ns

- -

22,030

10

,172

13

,913

2,73

5 48

,850

Transfers

- -

(68)

2,22

6 -

(2,635

) (477

)

Disp

osals

- -

- (710

) (7,139

) -

(7,849

)

Written-

off

- -

(15)

(22,67

9)

- -

(22,69

4)

At 31 De

cem

ber 2

010

64,410

71

8,12

9 35

,983

58

6,90

6 66

,681

90

0 1,47

3,00

9

Sepa

rate

fina

ncia

l sta

tem

ents

Furn

iture

,

Bu

ildin

gsa

nd

fix

ture

s

Land

and

land

bu

ildin

gM

achi

nery

and

an

dof

fice

As

sets

und

er

impr

ovem

ent

impr

ovem

ent

equi

pmen

teq

uipm

ent

Vehi

cles

co

nstru

ctio

nTo

tal

(inth

ousa

ndB

aht)

Berli

Juc

ker P

ublic

Com

pany

Lim

ited

and

its S

ubsi

diar

ies

Not

es to

the

finan

cial

sta

tem

ents

For t

he y

ears

end

ed 3

1 De

cem

ber 2

010

and

2009

436 437436 437

Accu

mulat

ed d

epre

ciat

ion

At 1 Jan

uary 200

9 22

,630

47

6,53

9 1,98

2 53

2,74

4 8,49

8 -

1,04

2,39

3

Deprec

iatio

n ch

arge

for the

yea

r 10

6 27

,439

1,31

4 16

,473

9,64

7 -

54,979

Disp

osals

- -

(816

) (873

) (1,093

) -

(2,782

)

Written-

off

- -

(473

) (7,606

) -

- (8,079

)

At 31 De

cem

ber 2

009 an

d 1 Ja

nuar

y 20

10

22,736

50

3,97

8 2,00

7 54

0,73

8 17

,052

-

1,08

6,51

1

Deprec

iatio

n ch

arge

for the

yea

r 10

5 27

,440

3,30

1 18

,018

11

,576

-

60,440

Transfers

- -

(21)

(21)

- -

(42)

Disp

osals

- -

- (695

) (3,315

) -

(4,010

)

Written-

off

- -

(14)

(22,66

4)

- -

(22,67

8)

At 31 De

cem

ber 2

010

22,841

53

1,41

8 5,27

3 53

5,37

6 25

,313

-

1,12

0,22

1

Net

boo

k va

lue

At 1 Jan

uary

200

9 41

,780

24

1,59

0 1,42

7 45

,871

32

,258

3,79

0 36

6,71

6

At 31 De

cem

ber 2

009 an

d 1 Ja

nuar

y 20

10

41,674

21

4,15

1 12

,029

57

,159

42

,855

80

0 36

8,66

8

At 31 De

cem

ber 2

010

41,569

18

6,71

1 30

,710

51

,530

41

,368

90

0 35

2,78

8

Sepa

rate

fina

ncia

l sta

tem

ents

Furn

iture

,

Bu

ildin

gsa

nd

fix

ture

s

Land

and

land

bu

ildin

gM

achi

nery

and

an

dof

fice

As

sets

und

er

impr

ovem

ent

impr

ovem

ent

equi

pmen

teq

uipm

ent

Vehi

cles

co

nstru

ctio

nTo

tal

(inth

ousa

ndB

aht)

Berli

Juc

ker P

ublic

Com

pany

Lim

ited

and

its S

ubsi

diar

ies

Not

es to

the

finan

cial

sta

tem

ents

For t

he y

ears

end

ed 3

1 De

cem

ber 2

010

and

2009



Security of subsidiary

LandwithstructuresthereonandmachineryandtoolsofthesubsidiaryhasbeenplacedunderanegativepledgeundertheloanagreementsbetweenThaiMalayaGlassCompanyLimitedandalocalbankasdescribedinNote17tofinancialstatements.

Asat31December2010and2009, landand land improvementson theconsolidatedbasis includedtheexcessofacquisitioncostsattributableto landvalueamountingtoBaht1,620millionrepresentingthedifferencesbetweenthefairvaluesoflandatthedatesofacquisitionsofsubsidiariesandtheoriginalcostsofthelandtothesubsidiariesconcerned.Taxesthatmightbecomepayableontherealisationofrevaluationsurplusesthroughdisposalsoftheseassetsareincludedunderdeferredincometaxliabilitiesintheconsolidatedfinancialstatements.

TheborrowingcostofassetsunderconstructionhavebeencapitalizedintheconsolidatedfinancialstatementsamountingtoBaht0.02million(2009: Baht 111 million)attheinterestrateof1.80%(2009: 1.90% to 2.00%)

ThegrossamountoftheGroup’sfullydepreciatedproperty,plantandequipmentthatwasstillinuseasat31December2010amountedtoBaht4,626million(2009: Baht 3,912 million)fortheconsolidatedfinancialstatementsandamountedtoBaht546million(2009: Baht 558 million)fortheseparatefinancialstatements.

438 439438 439

Cost

At 1 Jan

uary 200

9 86

,642

-

4,06

7 30

9,39

4 -

400,10

3

Additio

ns

- -

- 5,03

8 16

,159

21

,197

Disp

osals

(4,766

) -

(4,067

) (49,96

1)

- (58,79

4)

At 31 De

cem

ber 2

009 an

d 1 Ja

nuar

y 20

10

81,876

-

- 26

4,47

1 16

,159

36

2,50

6

Additio

ns

1,68

0,71

5 98

,653

-

8,36

1 25

,818

1,81

3,54

7

Acqu

isitio

ns th

roug

h bu

sines

s com

bina

tion

- -

- 1,57

8 -

1,57

8

Transfers

- -

- 42

,347

(41,97

7)

370

Disp

osals

- -

- (18,28

9)

- (18,28

9)

At 31 De

cem

ber 2

010

1,76

2,59

1 98

,653

-

298,46

8 -

2,15

9,71

2

Con

solid

ated

fina

ncia

l sta

tem

ents

So

ftwar

e

licen

ces

Dist

ribut

ion

Pa

tent

san

dSo

ftwar

eun

der

G

oodw

ill

chan

nel

trade

mar

ks

licen

ces

inst

alm

ent

Tota

l

(in

thou

sand

Bah

t)

14I

ntan

gibl

eas

sets

Berli

Juc

ker P

ublic

Com

pany

Lim

ited

and

its S

ubsi

diar

ies

Not

es to

the

finan

cial

sta

tem

ents

For t

he y

ears

end

ed 3

1 De

cem

ber 2

010

and

2009


Accu

mulat

ed a

mor

tisat

ion

At 1 Jan

uary 200

9 -

- 68

22

0,71

6 -

220,78

4

Amortisat

ion ch

arge

for the

yea

r -

- -

27,229

-

27,229

Transfers

- -

- (19)

- (19)

Disp

osals

- -

(68)

(42,17

3)

- (42,24

1)

At 31 De

cem

ber 2

009 an

d 1 Ja

nuar

y 20

10

- -

- 20

5,75

3 -

205,75

3

Amortisat

ion ch

arge

for the

yea

r -

- -

25,797

-

25,797

Disp

osals

- -

- (18,28

9)

- (18,28

9)

At 31 De

cem

ber 2

010

- -

- 21

3,26

1 -

213,26

1

Net

boo

k va

lue

At 1 Jan

uary

200

9 86

,642

-

3,99

9 88

,678

-

179,31

9

At 31 De

cem

ber 2

009 an

d 1 Ja

nuar

y 20

10

81,876

-

- 58

,718

16

,159

15

6,75

3

At 31 De

cem

ber 2

010

1,76

2,59

1 98

,653

-

85,207

-

1,94

6,45

1

Con

solid

ated

fina

ncia

l sta

tem

ents

So

ftwar

e

licen

ces

Dist

ribut

ion

Pa

tent

san

dSo

ftwar

eun

der

G

oodw

ill

chan

nel

trade

mar

ks

licen

ces

inst

alm

ent

Tota

l

(in

thou

sand

Bah

t)

Berli

Juc

ker P

ublic

Com

pany

Lim

ited

and

its S

ubsi

diar

ies

Not

es to

the

finan

cial

sta

tem

ents

For t

he y

ears

end

ed 3

1 De

cem

ber 2

010

and

2009

440 441440 441



ThegrossamountoftheGroup’sfullyamortisedintangibleassetsthatwasstillinuseasat31December2010amountedtoBaht176million(2009: Baht 133 million)fortheconsolidatedfinancialstatementsandamountedtoBaht67million(2009: Baht 70 million)fortheseparatefinancialstatements.

Separate financial statements Software licences Patentsand Software under trademarks licences instalment Total (inthousandBaht)

Cost

At 1 January 2009 4,067 101,456 - 105,523

Additions - 2,102 16,159 18,261

Disposals (4,067) (57) - (4,124)

At 31 December 2009 and 1 January 2010 - 103,501 16,159 119,660

Additions - 2,844 25,818 28,662

Transfer - 41,977 (41,977) -

Disposals - (16,335) - (16,335)

At 31 December 2010 - 131,987 - 131,987

Accumulated amortisation

At 1 January 2009 68 83,694 - 83,762

Amortisation charge for the year - 6,419 - 6,419

Disposals (68) (32) - (100)

At 31 December 2009 and 1 January 2010 - 90,081 - 90,081

Amortisation charge for the year - 9,312 - 9,312

Disposals - (16,335) - (16,335)

At 31 December 2010 - 83,058 - 83,058

Net book value

At 1 January 2009 3,999 17,762 - 21,761

At 31 December 2009 and 1 January 2010 - 13,420 16,159 29,579

At 31 December 2010 - 48,929 - 48,929



15 Deferredtax

Deferredtaxassetsandliabilitiesdeterminedafterappropriateoffsettingareincludedinthebalancesheetsasfollows:

Deferred tax assets 432,786 531,572 151,422 134,526

Deferred tax liabilities (488,250) (488,250) - -

Net (55,464) 43,322 151,422 134,526

2010 2009 2010 2009 (inthousandBaht)


442 443442 443

Defe

rred

tax as

sets

Inve

stmen

ts (im

pairm

ent)

83

,165

(70,42

2)

- -

12,743

Prop

erty, p

lant a

nd e

quipmen

t (im

pairm

ent)

1,03

0 (65)

- -

965

Other a

llowan

ces a

nd p

rovis

ions

24

7,25

5 20

,366

38

,485

(1,451

) 30

4,65

5

Loss

carry

forw

ard

20

0,12

2 (85,69

9)

- -

114,42

3

Tota

l

531,57

2 (1

35,820

) 38

,485

(1

,451

) 43

2,78

6

Defe

rred

tax lia

bilit

ies

Prop

erty, p

lant a

nd e

quipmen

t (reva

luatio

n)

13

(488

,250

) -

- -

(488

,250

)

Tota

l

(488

,250

) -

- -

(488

,250

)

Net

43,322

(1

35,820

) 38

,485

(1

,451

) (5

5,46

4)

Con

solid

ated

fina

ncia

l sta

tem

ents

(C

harg

ed)/

cr

edite

dto

st

atem

ento

f

At

1J

anua

ry

inco

me

Acqu

isiti

ono

fEx

chan

ge

At3

1De

cem

ber

No

te

2010

(n

ote

31)

subs

idia

ry

diffe

renc

es

2010

(inth

ousa

ndB

aht)

Movem

entsindeferredtaxassetsandliabilitiesduringtheyearwereasfollows:

Berli

Juc

ker P

ublic

Com

pany

Lim

ited

and

its S

ubsi

diar

ies

Not

es to

the

finan

cial

sta

tem

ents

For t

he y

ears

end

ed 3

1 De

cem

ber 2

010

and

2009



Consolidated financial statements

(Charged)/ creditedto statementof At1January income At31December Note 2009 (note31) 2009 (inthousandBaht)

Deferred tax assets

Investments (impairment) 81,127 2,038 83,165

Property, plant and equipment (impairment) 3,638 (2,608) 1,030

Other allowances and provisions 241,100 6,155 247,255

Loss carry forward 184,435 15,687 200,122

Total 510,300 21,272 531,572

Deferred tax liabilities

Property, plant and equipment (revaluation) 13 (488,250) - (488,250)

Total (488,250) - (488,250)

Net 22,050 21,272 43,322


Deferred tax assets

Investments (impairment) 12,743 - 12,743


Total 134,526 16,896 151,422

Deferred tax assets

Investments (impairment) 14,413 (1,670) 12,743


Total 102,384 32,142 134,526

(Charged)/ creditedto statementof At1January income At31December 2010 (note31) 2010 (inthousandBaht)


(Charged)/ creditedto statementof At1January income At31December 2009 (note31) 2009 (inthousandBaht)

444 445444 445



Deferredtaxassetsarisingfromtemporarydifferencesthathavenotbeenrecognisedinthefinancialstatementswereasfollows:

Loss carry forward - - - -

Temporary differences - 1,099 - -

Net - 1,099 - -

16 Othernon-currentassets

Deposits 20,173 13,116 7,447 2,609

Transportation packaging 61,256 74,472 - -

Unused assets 30,388 30,196 - -

Others 10,651 16 - -

Total 122,468 117,800 7,447 2,609

2010 2009 2010 2009 (inthousandBaht)


2010 2009 2010 2009 (inthousandBaht)




17 Interest-bearingliabilities

Asat31December2010and2009,theinterest-bearingliabilities,whichareunsecured,wereasfollows:

Current

Short-term loans from financial institutions 647,510 2,033,500 - -

Current portion of long - term loans 433,500 369,000 - -

Current portion of debentures 3,029,588 - 3,029,588 -

Short-term loans from related parties 5 - - 1,008,189 731,145

Total current 4,110,598 2,402,500 4,037,777 731,145

Non-current

Long-term loans from financial institutions 2,068,250 582,500 1,576,000 -

Debenture 1,896,566 3,027,794 1,896,566 3,027,794

Total non-current 3,964,816 3,610,294 3,472,566 3,027,794

Total 8,075,414 6,012,794 7,510,343 3,758,939

Theperiodstomaturityofinterest-bearingliabilitiesasat31Decemberwereasfollows:

Within one year 4,110,598 2,402,500 4,037,777 731,145

After one year but within five years 3,964,816 3,610,294 3,472,566 3,027,794

Total 8,075,414 6,012,794 7,510,343 3,758,939



2010 2009 2010 2009 (inthousandBaht)


446 447446 447



Debentures

Current

Current portion of debentures 3,029,588 - 3,029,588 -

Non-current

Principal 1,900,000 3,030,000 1,900,000 3,030,000

Less accumulated amortisation of transaction costs (3,434) (2,206) (3,434) (2,206)

Net 1,896,566 3,027,794 1,896,566 3,027,794

Total 4,926,154 3,027,794 4,926,154 3,027,794

DuringJuly2010,theCompanyissuedunsecureddebenturesofBaht1,900millionmaturinginJuly2015.Interestispaidsemi-annuallyattherateof3.45%perannum.TheCompanyisrequiredtomaintainaninterestbearingdebttoequityrationomorethan1.75to1basedontheannualconsolidatedfinancialstatements.

DuringMarch2008,theCompanyissuedBaht3,030millionunsecureddebenturesmaturinginMarch2011.Interestispaidsemi-annuallyattherateof3.73%perannum.TheCompanyisrequiredtomaintainaninterestbearingdebttoequityratioofnomorethan1.75to1basedontheannualconsolidatedfinancialstatements.

Subsequently,on16October2009,theCompanyenteredintoaninterestrateswapagreementwithafinancialinstitutionforoneyearstartingfrom26September2009to26September2010.TheCompanypaysThaiBahtfloatingrate,baseonaverageof6-monthfixeddepositratequotedby4referencecommercialbanks,plus2.30%perannumandreceivesfixedinterestat3.73%perannum,beingtheinterestrateoftheCompany’sdebentures,semi-annually.

Asat31December2010,short-termloansfromfinancialinstitutionsintheconsolidatedfinancialstatementsaredetailedbelow:

1 Short-term loan contract from a financial institution of Thai BeverageCan Limited, a subsidiary company, Baht360millionfixedinterestpayablemonthlyat2.125%perannum.Theloanisrepayableinfourequalmonthly installments,commencingfromApril2011,ofBaht90millionandafinalinstallmentinJuly2011ofBaht90million.

2 Short-termnotepayablesfromfinancialinstitutionsofBaht288million(2009: Baht 1,633.5 million).

2010 2009 2010 2009 (inthousandBaht)




Asat31December2010and2009,long-termloansaredetailedbelow:

1 Long-termloansoftheCompanyconsistedofaloanfromafinancialinstitution,asdetailedbelow:

InJuly2010,TheCompanyenteredintoalong-termBahtloanagreementwithafinancialinstitutionattotalcredit limitofBaht2,500million.Theoutstandingloanasat31December2010amountedtoBaht1,576million,repayable inyearfive,commencingfromthedayoffirstwithdrawal.Interestispaidsemi-annuallyattherateof3.59%perannum.

Undertheseloanagreements,theCompanyisrequiredtocomplywithconditionsandrestrictionsstipulatedinthe loanagreementssuchasnegativepledgeofassets,maintenanceoffinancialratio,etc.

2 Long-termloansofThaiGlassPublicCompanyLimited,asubsidiarycompany,consistedof loanswithfinancial institutions,asdetailedbelow:

The loan isaBaht loanofBaht1,000millionwith5year term,commencing fromthe thirdquarterof2007.The outstandingbalanceasat31December2010wasBaht583million(2009: Baht 917 million).Thisloanisrepayable inelevenequalquarterlyinstallmentsofBaht83.5million,fromOctober2009toJuly2012ofBaht81.5million.Interest ispayablequarterlyatfixedrateof4.375%perannum.

3 Long-termloansofT.C.C.TechnologyCompanyLimited,asubsidiarycompany,consistedofaloanfromafinancial institution,asdetailedbelow:

TheloanisaBahtloanwithcreditfacilitiesofBaht100millionandoutstandingbalanceasat31December2010 wasBaht32million.This2years loan is repayable in fiveequalquarterly installmentsat leaseBaht17million, commencingfromApril2009andthelastrepaymenttobemadeby31July2011.Interestispayableonamonthly basisatafixedrateof3.55%perannum.

Undertheseloanagreements,thesubsidiariesarerequiredtocomplywithconditionsandrestrictionsstipulatedin theloanagreementssuchasmaintenanceoffinancialratio,etc.

4 Long-termloansofThaiMalayaGlassCompanyLimited,anindirectsubsidiaryofjointly-controlledentity,consisted ofaloanfromafinancialinstitution,asdetailbelow:

TheloanisaBahtandoutstandingbalanceasat31December2010wasBaht311million.Interestispayableat aratereferencedtoMLR.Theloaninterestandprinciplearetoberepaidinquarterly installments,withthelast installmentbeingdueinJune2014.

Duringthecurrentyear,asubsidiaryagreedanamendmenttothelong-termagreementwiththebank,wherebyloan repaymenthasbeensuspendedforthreeinstallments,comprisingSeptember2010,December2010andMarch 2011,andthetermoftheloanhasbeenextendedbyninemonths.

Theloanissecuredbymortgageofasubsidiary’slandwithstructuresthereonandmachineryandtoolsasdiscussed inNote13tofinancialstatements.

Asat31December2010theGroupandtheCompanyhadunutilisedcreditfacilitiestotalingBaht16,274millionandBaht2,291million,respectively(2009: Baht 14,985 million and Baht 1,429 million, respectively).

448 449448 449



Thecurrencydenominationofinterest-bearingliabilitiesasat31Decemberwasasfollows:



Others 40,693 - - -

Total 8,075,414 6,012,794 7,510,343 3,758,939

18 Tradeaccountspayable

Related parties 5 252,887 202,258 2,230,548 2,015,036

Other parties 2,879,593 2,464,518 562,311 437,384

Total 3,132,480 2,666,776 2,792,859 2,452,420

Thecurrencydenominationoftradeaccountspayableasat31Decemberwasasfollows:



United States Dollars (USD) 1,105,796 1,212,182 219,151 218,940

Japanese Yen (JPY) 239,537 138,530 41,822 10,153

Euro (EUR) 63,894 72,840 46,366 44,911

Singapore Dollars (SGD) 578 - - -

Great Britain Pound (GBP) 14,118 - - -

Others 30,552 31,046 12,754 17,758

Total 3,132,480 2,666,776 2,792,859 2,452,420

2010 2009 2010 2009 (inthousandBaht)




2010 2009 2010 2009 (inthousandBaht)




19 Othercurrentliabilities

Thecurrencydenominationofothercurrentliabilitiesasat31Decemberwasasfollows:

Payables for asset purchases 5 166,389 225,146 52 16,317

Deferred income 316,598 208,218 97,770 45,754

Withholding tax payable 71,563 69,471 35,978 32,251

Other payable 139,383 59,457 101,491 26,534

Accrued advertising and promotion 309,456 400,315 296,597 385,605

Accrued commission 109,033 86,137 91,984 86,137

Others 883,693 743,572 310,722 211,603

Total 1,996,115 1,792,316 934,594 804,201


functional currencies of foreign subsidiaries 1,837,607 1,785,341 933,797 804,201

United States Dollars (USD) 158,508 825 797 -

Others - 6,150 - -

Total 1,996,115 1,792,316 934,594 804,201



2010 2009 2010 2009 (inthousandBaht)


450 451450 451



20 Provisionforstaffretirementbenefits

Changesinprovisionforstaffretirementbenefitsfortheyearsended31Decemberwereasfollows:

At 1 January 365,008 346,953 98,812 90,263

Increased 43,570 51,691 15,216 26,606

Acquisition through business combination 10,263 - - -

Decreased (17,602) (33,636) (3,006) (18,057)

Effect of movement in exchange rates (460) - - -

At 31 December 400,779 365,008 111,022 98,812

21 Othernon-currentliabilities

Long-term lease income 90,475 81,400 62,694 67,603

Other liabilities 21,319 12,124 10,903 12,123

Total 111,794 93,524 73,597 79,726

2010 2009 2010 2009 (inthousandBaht)


2010 2009 2010 2009 (inthousandBaht)




22 Sharecapital

2010 2009 Parvalue pershare Number Amount Number Amount (inBaht) (inthousandshares/inthousandBaht)

Authorised

At 1 January

- ordinary shares 1 1,588,125 1,588,125 1,588,125 1,588,125

At 31 December

- ordinary shares 1 1,588,125 1,588,125 1,588,125 1,588,125

Issued and paid

At 1 January

- ordinary shares 1 1,588,125 1,588,125 1,588,125 1,588,125

At 31 December

- ordinary shares 1 1,588,125 1,588,125 1,588,125 1,588,125

23 Additionalpaid-upcapitalandreserves

Share premium

Section51ofthePublicCompaniesActB.E.2535,requirescompaniestosetasidesharesubscriptionmoniesreceivedinexcessoftheparvalueofthesharesissuedtoareserveaccount(“sharepremium”).Sharepremiumisnotavailablefordividenddistribution.

Donated Surplus

ThedonatedsurplusofBaht37millionresultedfromprofitsmadebyadirectoroftheCompanyin1994onthesaleof397,104rightsissuesharesnotsubscribedforbytheshareholdersandresoldtothepublicontheStockExchangeofThailand.Thedonatedsurplusisnotavailablefordividenddistribution.

Surplus on disposal of Company’s shares held by a subsidiary

ThesurplusonsaleoftheCompany’ssharesheldbyasubsidiaryofBaht32millionisshownundertheequityintheconsolidatedfinancialstatements inaccordancewith theprescribedtreatment for treasurystockand isnotavailable fordividenddistribution.

Hedging reserve

Thehedgingreservecomprisestheeffectiveportionofthecumulativenetchangeinthefairvalueofcashflowhedginginstruments.

452 453452 453



Legal reserve

Section116ofthePublicCompaniesActB.E.2535requiresthatacompanyshallallocatenotlessthan5%ofitsannualnetprofit,lessanyaccumulatedlossesbroughtforward,toareserveaccount(“legalreserve”),untilthisaccountreachesanamountnotlessthan10%oftheregisteredauthorisedcapital.Thelegalreserveisnotavailablefordividenddistribution.

Asat31December2010and2009,legalreserveaspresentedintheconsolidatedfinancialstatementsincludestheGroup’sshareofthelegalreserveofthesubsidiariesofBaht89million.

Reserve for business expansion

ThereserveforbusinessexpansionrepresentsaninternalreserveforbusinessexpansionoftheGroup.Thereserveforbusinessexpansionisnotavailablefordividenddistribution.

Currency translation differences

Thecurrencytranslationdifferencesaccountwithinequitycomprisesallforeigncurrencydifferencesarisingfromthetranslationofthefinancialstatementsofforeignoperations,aswellasfromthetranslationofliabilitiesthathedgetheCompany’snetinvestmentinaforeignoperation.

24 Segmentinformation

SegmentinformationispresentedinrespectoftheGroup’sbusiness.ThebusinesssegmentsarebasedontheGroup’smanagementandinternalreportingstructure.

TheGroupcomprisesthefollowingmainbusinesssegments:

Segment 1 Industrialsupplychain

Segment 2 Consumersupplychain

Segment 3 Technicalsupplychain

Management considers that theGroupoperatesmainly in Thailandandhas, therefore, only onemajorgeographicsegment.


B

usi

nes

s se

gmen

t re

sult

s

Sales a

nd se

rvices

13

,067

.8

10,699

.8

8,06

8.5

7,22

3.5

4,53

2.1

4,45

7.6

488.0

418.3

(74.6)

- 26

,081

.8

22,799

.2

Other in

come

137.8

165.2

39.7

46.3

60.3

91.7

949.7

606.8

(910

.2)

(638

.7)

277.3

271.3

Tota

l rev

enue

s 13

,205

.6

10,865

.0

8,10

8.2

7,26

9.8

4,59

2.4

4,54

9.3

1,43

7.7

1,02

5.1

(984

.8)

(638

.7)

26,359

.1

23,070

.5

Cost

of sa

les a

nd se

rvices

10

,173

.7

9,24

2.2

5,55

8.1

4,80

3.9

2,84

5.2

2,84

3.3

420.0

308.3

(57.4)

- 18

,939

.6

17,197

.8

Sellin

g an

d ad

ministrativ

e ex

penses

1,11

0.0

937.6

1,99

5.9

1,81

1.3

1,18

5.1

1,13

1.5

299.0

312.0

(198

.2)

(213

.3)

4,39

1.8

3,97

9.1

Tota

l exp

ense

s 11

,283

.7

10,179

.8

7,55

4.0

6,61

5.2

4,03

0.3

3,97

4.9

719.0

620.3

(255

.6)

(213

.3)

23,331

.4

21,176

.9

Share

of p

rofit o

f asso

ciat

es

30.0

47.1

- -

30.0

14.2

2.2

2.4

- -

62.2

63.7

Prof

it b

efor

e fin

ancial cos

ts a

nd

inco

me

tax ex

pens

e 1,95

1.9

732.3

554.2

654.6

592.1

588.6

720.9

407.2

(729

.2)

(425

.4)

3,08

9.9

1,95

7.3

Finan

ce cos

ts (123

.6)

(166

.4)

(52.6)

(58.5)

(3.4)

(17.2)

(176

.8)

(115

.4)

(129

.4)

(135

.3)

(227

.0)

(222

.2)

Prof

it be

fore

inco

me

tax ex

pens

e 1,82

8.3

565.9

501.6

596.1

588.7

571.4

544.1

291.8

(599

.8)

(290

.1)

2,86

2.9

1,73

5.1

Inco

me

tax ex

pense

(437

.4)

(134

.0)

(99.8)

(124

.3)

(168

.4)

(164

.9)

33.4

4.5

(4.1)

(3.5)

(668

.1)

(415

.2)

Prof

it fo

r the

yea

r 1,39

0.9

431.9

401.8

471.8

420.3

406.5

577.5

296.3

(595

.7)

(286

.6)

2,19

4.8

1,31

9.9

20

10

2009

20

10

2009

20

10

2009

20

10

2009

20

10

2009

20

10

2009

(in

milli

onB

aht)

Se

gmen

t1

Segm

ent2

Se

gmen

t3

Oth

erS

egm

ent

Elim

inat

ions

To

tal

Berli

Juc

ker P

ublic

Com

pany

Lim

ited

and

its S

ubsi

diar

ies

Not

es to

the

finan

cial

sta

tem

ents

For t

he y

ears

end

ed 3

1 De

cem

ber 2

010

and

2009

454 455454 455

B

usi

nes

s se

gmen

t fin

anci

al p

ositio

n

Cash a

nd cas

h eq

uiva

lents

398.8

126.3

122.8

37.3

25.1

19.4

677.0

658.1

- -

1,22

3.7

841.1

Trade

acc

ounts r

eceiva

ble

2,38

5.0

1,93

4.1

1,47

8.3

1,27

5.3

1,44

1.7

1,36

8.5

121.0

100.0

(35.5)

(116

.3)

5,39

0.5

4,56

1.6

Curre

nt p

ortio

n of lo

ng-term lo

ans t

o

related

parties

-

- -

- -

- 2,80

0.0

- (2,800

.0)

- -

-

Short-term

loan

s to

and

othe

r rec

eiva

bles

fro

m re

lated

parties

81

0.8

0.2

139.8

193.2

649.0

658.7

481.5

394.1

(2,079

.5)

(1,246

.0)

1.6

0.2

Inve

ntories

2,73

9.4

2,87

0.3

790.9

783.7

931.2

847.0

5.2

0.6

(0.6)

- 4,46

6.1

4,50

1.6

Other current a

ssets

138.1

60.1

69.6

70.1

92.8

83.6

309.7

202.7

- -

610.2

416.5

Tota

l cur

rent

asset

s 6,47

2.1

4,99

1.0

2,60

1.4

2,35

9.6

3,13

9.8

2,97

7.2

4,39

4.4

1,35

5.5

(4,915

.6)

(1,362

.3)

11,692

.1

10,321

.0

Inve

stmen

ts in a

ssociat

es

4,24

8.6

355.1

205.8

205.8

39.2

31.2

11,851

.5

7,32

4.1

(15,93

2.9)

(7,517

.7)

412.2

398.5

Other lo

ng-term in

vestm

ents

-

- -

- -

- 0.8

0.8

- -

0.8

0.8

Long

-term lo

ans t

o related

parties

-

- -

- -

- -

2,80

0.0

- (2,800

.0)

- -

Leas

ehold

land

-

2.1

55.6

55.8

- -

- -

- -

55.6

57.9

Prop

erty, p

lant a

nd e

quipmen

t 7,33

5.6

6,31

1.7

2,84

0.0

2,99

7.1

69.0

22.5

691.4

500.9

1,59

7.5

1,61

9.0

12,533

.5

11,451

.2

Inta

ngible a

ssets

10.4

12.3

2.2

3.8

- -

72.6

58.8

1,86

1.3

81.8

1,94

6.5

156.7

Deferre

d ta

x as

sets

86.5

210.3

177.3

164.5

4.4

8.6

160.4

146.8

4.2

1.4

432.8

531.6

Other non

-current a

ssets

74.3

78.3

2.0

0.7

14.0

2.9

24.3

28.1

7.9

7.9

122.5

117.9

Tota

l non

-cur

rent

asset

s 11

,755

.4

6,96

9.8

3,28

2.9

3,42

7.7

126.6

65.2

12,801

.0

10,859

.5

(12,46

2.0)

(8

,607

.6)

15,503

.9

12,714

.6

Tota

l asset

s 18

,227

.5

11,960

.8

5,88

4.3

5,78

7.3

3,26

6.4

3,04

2.4

17,195

.4

12,215

.0

(17,37

7.6)

(9,96

9.9)

27

,196

.0

23,035

.6

20

10

2009

20

10

2009

20

10

2009

20

10

2009

20

10

2009

20

10

2009

(in

milli

onB

aht)

Se

gmen

t1

Segm

ent2

Se

gmen

t3

Oth

erS

egm

ent

Elim

inat

ions

To

tal

Berli

Juc

ker P

ublic

Com

pany

Lim

ited

and

its S

ubsi

diar

ies

Not

es to

the

finan

cial

sta

tem

ents

For t

he y

ears

end

ed 3

1 De

cem

ber 2

010

and

2009


Bank

ove

rdrafts

and

short-term

loan

s from

fin

ancial in

stitutio

ns

530.5

1,89

1.5

100.0

142.0

- -

17.0

- -

- 64

7.5

2,03

3.5

Trade

acc

ounts p

ayab

le

1,90

4.5

1,68

9.9

626.6

492.9

557.4

470.4

49.9

40.1

(5.9)

(26.5)

3,13

2.5

2,66

6.8

Curre

nt p

ortio

n of lo

ng-term lo

ans

401.5

334.0

- -

- -

32.0

35.0

- -

433.5

369.0

Curre

nt p

ortio

n of d

eben

tures

- -

- -

- -

3,02

9.6

- -

- 3,02

9.6

-

Short-term

loan

s from a

nd o

ther p

ayab

les t

o

related

parties

2,47

3.0

171.6

1,30

7.6

304.4

28.3

73.3

1,10

7.1

791.8

(4,910

.7)

(1,340

.1)

5.3

1.0

Other current lia

biliti

es

834.7

491.6

330.5

361.2

124.0

179.2

1,06

7.6

969.1

(37.3)

33.4

2,31

9.5

2,03

4.5

Tota

l cur

rent

liab

ilitie

s 6,14

4.2

4,57

8.6

2,36

4.7

1,30

0.5

709.7

722.9

5,30

3.2

1,83

6.0

(4,953

.9)

(1,333

.2)

9,56

7.9

7,10

4.8

Long

-term lo

ans f

rom fina

ncial in

stitutio

ns

492.2

582.5

- -

- -

1,57

6.0

- -

- 2,06

8.2

582.5

Debe

ntures

-

-

- -

- -

1,89

6.6

3,02

7.8

- -

1,89

6.6

3,02

7.8

Long

-term lo

ans f

rom re

lated

parties

-

1,60

0.0

- 1,20

0.0

- -

- -

- (2,800

.0)

- -

Prov

ision

s for st

aff retire

men

t ben

efits

152.1

134.1

111.0

102.0

26.7

30.1

111.0

98.8

- -

400.8

365.0

Deferre

d ta

x lia

biliti

es

- -

- -

- -

- -

488.3

488.3

488.3

488.3

Other non

-current lia

biliti

es

0.7

- 9.5

- -

- 10

1.6

93.5

- -

111.8

93.5

Tota

l non

-cur

rent

liab

ilitie

s 64

5.0

2,31

6.6

120.5

1,30

2.0

26.7

30.1

3,68

5.2

3,22

0.1

488.3

(2,311

.7)

4,96

5.7

4,55

7.1

Tota

l lia

bilit

ies

6,78

9.2

6,89

5.2

2,48

5.2

2,60

2.5

736.4

753.0

8,98

8.4

5,05

6.1

(4,465

.6)

(3,644

.9)

14,533

.6

11,661

.9

Capita

l exp

enditure

779.0

291.3

134.7

298.7

32.3

0.3

199.4

135.9

- -

1,14

5.4

726.2

Deprec

iatio

n 1,00

4.9

942.0

286.6

272.2

13.2

1.1

83.2

94.3

- -

1,38

7.9

1,30

9.6

Amortisat

ion

4.6

5.1

5.2

3.6

- -

18.3

18.5

- -

28.1

27.7

Gain on

disp

osal o

f asse

ts 0.1

1.2

1.1

4.8

- 0.2

0.4

(1.1)

- -

1.6

5.1

20

10

2009

20

10

2009

20

10

2009

20

10

2009

20

10

2009

20

10

2009

(in

milli

onB

aht)

Se

gmen

t1

Segm

ent2

Se

gmen

t3

Oth

erS

egm

ent

Elim

inat

ions

To

tal

Berli

Juc

ker P

ublic

Com

pany

Lim

ited

and

its S

ubsi

diar

ies

Not

es to

the

finan

cial

sta

tem

ents

For t

he y

ears

end

ed 3

1 De

cem

ber 2

010

and

2009

456 457456 457



25 Otherincome

Interest income 6,337 5,006 120,641 127,133

Gain on disposal of assets 1,614 5,131 - -

Rental and service income 52,058 29,479 200,602 182,259

Sale scrap 37,555 50,140 - -

Commission income 1,703 243 312 2,437

Reversal of allowance for impairment of investment - - - 5,567

Others 135,140 149,362 61,842 125,681

Total 234,407 239,361 383,397 443,077

26 Sellingexpenses

Distribution 1,007,050 973,679 725,157 652,979

Marketing 1,285,563 1,154,375 1,190,485 1,125,198

Personnel 373,938 387,722 279,995 296,380

Others 290,521 457,899 161,125 276,641

Total 2,957,072 2,973,675 2,356,762 2,351,198

2010 2009 2010 2009 (inthousandBaht)


2010 2009 2010 2009 (inthousandBaht)




27 Administrativeexpenses

Personnel 736,160 628,730 471,030 383,089

Others 638,585 304,015 373,572 207,437

Total 1,374,745 932,745 844,602 590,526

28 Employeebenefitexpenses

Management

Wages and salaries 57,394 69,885 57,394 69,885

Defined contribution and benefit plans 2,598 2,817 2,598 2,817

59,992 72,702 59,992 72,702

Other employees

Wages and salaries 1,979,207 1,795,002 605,253 569,992

Defined contribution and benefit plans 116,923 121,926 39,459 52,689

Others 301,040 267,984 106,313 56,788

2,397,170 2,184,912 751,025 679,469

Total 2,457,162 2,257,614 811,017 752,171

ThedefinedcontributionplanscompriseprovidentfundsestablishedbytheCompany/Groupforitsemployees.Membershiptothefundsisonavoluntarybasis.Contributionsaremademonthlybytheemployeesatratesrangingfrom3%to7.5%oftheirbasicsalariesandbytheCompany/Groupatratesrangingfrom3%to7.5%oftheemployees’basicsalaries.TheprovidentfundsareregisteredwiththeMinistryofFinanceasjuristicentitiesandaremanagedbyalicensedFundManager.

2010 2009 2010 2009 (inthousandBaht)


2010 2009 2010 2009 (inthousandBaht)


458 459458 459



29 Expensesbynature

Thestatementsofincomeincludeananalysisofexpensesbyfunction.ExpensesbynaturedisclosedinaccordancewiththerequirementsofvariousTFRSwereasfollows:

Changes in inventories of finished goods

and work in progress (491,161) 224,119 (183,041) (302,147)

Purchased goods available for sales 4,177,401 3,224,711 14,683,712 13,478,590

Raw materials and consumables used 8,817,186 8,198,721 - -

Depreciation and amortization expense 1,413,704 1,336,891 69,752 61,399

Employee benefits expense 2,457,612 2,257,614 811,017 752,171

Others 6,956,701 5,934,868 2,380,587 2,200,855

Total cost of sales of goods, selling

expense and administrative expenses 23,331,443 21,176,924 17,762,027 16,190,868

30 Financecosts

Interest paid to:

Related parties 5 - - 7,009 5,555

Financial institutions 225,384 220,480 160,746 114,048

Amortisation of transaction

costs capitalised 1,640 1,792 1,640 1,792

227,024 222,272 169,395 121,395

Capitalised as cost of assets

under construction (17) (111) - -

Net 227,077 222,161 169,395 121,395

2010 2009 2010 2009 (inthousandBaht)






31 Incometaxexpense

Current tax expense

Current year 538,506 436,417 241,521 254,368

Under / (over) provided in prior years (6,272) 75 (908) 28

532,234 436,492 240,613 254,396

Deferred tax expense 15

Movements in temporary differences 135,820 (21,272) (16,896) (32,142)

Total 668,054 415,220 223,717 222,254


2010 2009

Reconciliation of effective tax rate

Profit before income tax expense 2,862,870 1,735,113

Income tax using the Thai corporation tax rate 30 858,861 30 520,533

Income tax reduction (15,450) (15,657)

Effect of different tax rates in foreign

jurisdictions (3,251) -

Income not subject to tax (177,946) (112,173)

Expenses not deductible for tax purposes 5,840 22,517

Total 23 668,054 24 415,220



Rate(%) (inthousand Rate(%) (inthousand Baht) Baht)

460 461460 461



Reconciliation of effective tax rate

Profit before income tax expense 1,379,274 1,046,223

Income tax using the Thai corporation tax rate 30 413,782 30 313,868

Income tax reduction (15,000) (15,000)

Income not subject to tax (181,652) (86,247)

Expenses not deductible for tax purposes 6,587 9,633

Total 16 223,717 21 222,254

Income tax reduction

RoyalDecreeNo.475B.E.2551dated6August2008grantscompanieslistedontheStockExchangeofThailandareductioninthecorporateincometaxratefrom30%to25%fortaxableprofitnotexceedingBaht300millionforthethreeconsecutiveaccountingperiodsbeginningonorafter1January2008.

32 Promotionalprivileges

ByvirtueoftheprovisionsoftheIndustrialInvestmentPromotionActofB.E.2520,BerliJuckerCelloxCompanyLimited,asubsidiary,hasbeengrantedprivilegesbytheBoardofInvestmentforpapermanufacturingactivitiesby:No.1541(2)/2547dated6July2004forsanitarypapersmanufacturingandNo.1875(2)/2547dated19October2004forpaperpulpmanufacturing.Themajorprivilegesgrantedtothesubsidiaryareasfollows:

(a) exemptionfrompaymentofimportdutyonmachineryapprovedbytheBoard;

(b) exemptionfromcorporateincometaxfortheprofitearnedunderpromotionalprivilegesatnotover100%ofinvestment excludelandandcapitalfundforaperiodof8yearsfromthedateoperatingincomeisfirstderived.Theexemption ofcorporateincometaxmustnotexceedBaht1,207millionforthepromotionalprivilegesNo.1541(2)/2547and notexceedBaht471million for thepromotionalprivilegesNo.1875 (2) /2547.Thus, thiswillbevariedby the investmentexcludingactualcostoflandandcapitalfundatthefirstoperationdateunderpromotionalprivileges project;

(c) a50%reductioninthenormalincometaxrateonthenetprofitderivedfromcertainoperationsforaperiodoffive years,commencingfromtheexpirydatein(b)above;and

(d) doubledeductionoftransportationexpenses,electricityexpensesandwaterexpensesforaperiodoftenyearsfrom thedateonwhichtheincomeisfirstderivedfromsuchoperations.


2010 2009 Rate(%) (inthousand Rate(%) (inthousand Baht) Baht)



ByvirtueoftheprovisionsoftheIndustrialInvestmentPromotionActofB.E.2520,ThaiBeverageCanLtd.,asubsidiary,hasbeengrantedprivilegesbytheBoardofInvestmentrelatingtomanufactureofAluminiumcanundercategory4.18,themanufactureofmetalproductsincludingmetalpartsdated11June2007.Theprivilegesgrantedinclude:

(a) exemptionfrompaymentofimportdutyonmachineryapprovedbytheBoard;

(b) exemptionfrompaymentofincometaxforcertainoperationsforaperiodof7yearsfromthedatesonwhichthe incomeisfirstderivedfromsuchoperations.However,thecorporateincometaxexemptionistotallynotoverthan 1timeofthetotalinvestmentinthisprojectexcludingcostoflandandworkingcapital;

(c) ifalossisincurredduringtheperiodofexemptionfromcorporateincometax,theCompanyshallbegrantedpermission todeductsuchannuallossfromthenetincomeaftertheexpirationoftheperiodofexemptionofcorporateincome taxperiodfornotmorethan5yearsfromtheexpirydateofsuchperiod.

ByvirtueoftheprovisionsoftheIndustrialInvestmentPromotionActofB.E.2520,ThaiBeverageCanLtd.,asubsidiary,hasbeengrantedprivilegesbytheBoardofInvestmentrelatingtomanufactureofAluminiumendforbeveragepackagingundercategory4.3,themanufactureofmetalproductsincludingmetalpartsdated25July2003.Theprivilegesgrantedinclude:

(a) a50%reductionofimportdutyonapprovedmachinerywithinthespecificperiod;

(b) exemptionfrompaymentofincometaxforcertainoperationsforaperiodof7yearsfromthedatesonwhichthe incomeisfirstderivedfromsuchoperations.However,thecorporateincometaxexemptionistotallynotoverthan 1timeofthetotalinvestmentinthisprojectexcludingcostoflandandworkingcapital;

(c) ifalossisincurredduringtheperiodofexemptionfromcorporateincometax,theCompanyshallbegrantedpermission todeductsuchannuallossfromthenetincomeaftertheexpirationoftheperiodofexemptionofcorporateincome taxperiodfornotmorethan5yearsfromtheexpirydateofsuchperiod;

ByvirtueoftheprovisionsoftheIndustrialInvestmentPromotionActofB.E.2520,ThaiBeverageCanLtd.,asubsidiary,hasbeengrantedprivilegesbytheBoardofInvestmentrelatingtomanufactureofAluminiumcanandAluminiumendforbeveragepackagingundercategory4.6,themanufactureofmetalcontainersdated15August1996.Theprivilegesgrantedinclude:

(a) a50%reductionofimportdutyonapprovedmachinerywithinthespecificperiod;

(b) exemptionfrompaymentofincometaxforcertainoperationsforaperiodof7yearsfromthedatesonwhichthe incomeisfirstderivedfromsuchoperations;

(c) ifalossisincurredduringtheperiodofexemptionfromcorporateincometax,theCompanyshallbegrantedpermission todeductsuchannuallossfromthenetincomeaftertheexpirationoftheperiodofexemptionofcorporateincome taxperiodfornotmorethan5yearsfromtheexpirydateofsuchperiod;

(d) adeductionforaperiodoftenyearsofanamountequalto5%oftheincreaseinexportedincomeofcertainpromoted operationsovertheincomefromthoseoperationsforthepreviousyear.However,theexportsalesofthatyearmust notbelessthantheaverageinthelastthreeyears,exceptedforthefirsttwoyears.

462 463462 463



Byvirtueoftheprovisionsofpromotional,ThaiMalayaGlassCompanyLimited,asubsidiaryofjointly-controlledentity,hasbeengrantedprivilegesfromtheBoardofInvestmentforthemanufactureofglassbottles,pursuanttothepromotioncertificateNo.2089(2)/2548issuedon1December2005.Subjecttocertainimposedconditions,theprivilegesincludeanexemption fromcorporate incometaxonprofits fromthepromotedoperations, foraperiodof7years fromthedate thepromotedoperationscommencedgeneratingrevenues(5October2007).

Aspromotedcompanies,thesubsidiariesmustcomplywithcertaintermsandconditionsprescribedinthepromotionalcertificates.

Summaryofrevenuefrompromotedandnon-promotedbusinesses:

Export sales 323,289 2,390,783 2,714,072 280,259 1,764,929 2,045,188

Local sales 2,890,201 32,971,115 35,861,316 2,374,397 30,278,008 32,652,405

Eliminations (976,973) (11,516,580) (12,493,553) (820,723) (11,077,698) (11,898,421)

Total Revenue 2,236,517 23,845,318 26,081,835 1,833,933 20,965,239 22,799,172


Promoted Non-promoted Promoted Non-promoted businesses businesses Total businesses businesses Total (inthousandBaht)

2010 2009

33 Earningspershare

Thecalculationsofearningspersharefortheyearsended31December2010and2009werebasedontheprofitfortheyearsattributabletoequityholdersoftheCompanyandthenumberofordinarysharesoutstandingduringtheyearsasfollows:

Profit attributable to equity holders of the Company 1,905,465 1,262,101 1,155,557 823,970

Number of ordinary shares outstanding 1,588,125 1,588,125 1,588,125 1,588,125

Earnings per share (in Baht) 1.20 0.79 0.73 0.52

2010 2009 2010 2009 (inthousandBaht/inthousandshares)




34 Dividends

AttheBoardofDirectors’MeetingoftheCompanyheldon11August2010,thedirectorspassedaresolutionapprovingtheinterimdividendpaymentfortheyear2010ofBaht0.25pershare,amountingtoBaht397million.Thisinterimdividendwaspaidtoshareholderson10September2010.

AttheannualgeneralmeetingoftheshareholdersoftheCompanyheldon29April2010,theshareholdersapprovedtheappropriationofdividendsofBaht0.33pershare,amountingtoBaht524million.On11September2009,theinterimdividendwaspaidofBaht0.12pershare,amountingtoBaht191million.TheremainingdividendpaymentofBaht0.21pershare,amountingtoBaht333million,waspaidtoshareholderson27May2010.

AttheBoardofDirectors’MeetingoftheCompanyheldon13August2009,thedirectorspassedaresolutionapprovingtheinterimdividendpaymentfortheyear2009ofBaht0.12pershare,amountingtoBaht191million.Thisinterimdividendwaspaidtoshareholderson11September2009.

AttheannualgeneralmeetingoftheshareholdersoftheCompanyheldon28April2009,theshareholdersapprovedtheappropriationofdividendsofBaht0.30pershare,amountingtoBaht476million.On12September2008,theinterimdividendwaspaidofBaht0.15pershare,amountingtoBaht238million.TheremainingdividendpaymentofBaht0.15pershare,amountingtoBaht238million,waspaidtoshareholderson27May2009.

35 Financialinstruments

Financial risk management policies

TheGroup isexposedtonormalbusinessrisks fromchanges inmarket interest ratesandcurrencyexchangeratesandfromnon-performanceofcontractualobligationsbycounterparties.TheGroupdoesnotholdorusederivativefinancialinstrumentsforspeculativeortradingpurposes.

RiskmanagementisintegraltothewholebusinessoftheGroup.TheGrouphasasystemofcontrolsinplacetocreateanacceptablebalancebetweenthecostofrisksoccurringandthecostofmanagingtherisks.ThemanagementcontinuallymonitorstheGroup’sriskmanagementprocesstoensurethatanappropriatebalancebetweenriskandcontrolisachieved.

Capital management

TheBoard’spolicyistomaintainastrongcapitalbasesoastomaintaininvestor,creditorandmarketconfidenceandtosustainfuturedevelopmentofthebusiness.TheBoardmonitorsthereturnoncapital,whichtheGroupdefinesasresultfromoperatingactivitiesdividedbytotalshareholders’equity,excludingnon-controllinginterestsandalsomonitorsthelevelofdividendstoordinaryshareholders.

464 465464 465



Interest rate risk

InterestrateriskistheriskthatfuturemovementsinmarketinterestrateswillaffecttheresultsoftheGroup’soperationsanditscashflowsbecauseloaninterestratesaremainlyfixed.TheGroupisprimarilyexposedtointerestrateriskfromitsborrowings(note17).TheGroupmitigatesthisriskbyensuringthatthemajorityofitsborrowingsareatfixedinterestratesandusesderivativefinancialinstruments,tomanageexposuretofluctuationsininterestratesonspecificborrowings.

Theeffective interest ratesof interest-bearingfinancial liabilitiesasat31Decemberand theperiods inwhich thoseliabilitiesmatureorre-pricewereasfollows:


2010

Current

- Short-term loans from financial

institutions 4.67 - 647.51 - 647.51

- Current portion of long-term loans 4.35 - 433.50 - 433.50

- Current portion of debentures 3.73 - 3,029.59 - 3,029.59

Non-current

- Long-term loans from financial institutions 3.82 - - 2,068.25 2,068.25

- Debentures 3.45 - - 1,896.57 1,896.57

Total - 4,110.60 3,964.82 8,075.42

2009

Current

- Short-term loans from financial

institutions 1.93 - 2,033.50 - 2,033.50

- Current portion of long-term loans 4.34 - 369.00 - 369.00

Non-current

- Long-term loans from financial institutions 4.34 - - 582.50 582.50

- Debentures 3.73 - - 3,027.79 3,027.79

Total - 2,402.50 3,610.29 6,012.79

Fixedinterestratematuring Effective Floating After1yearbut interest interest Within1 within5 rate rate year years Total (%) (inmillionBaht)



Foreign currency risk

TheGroupisexposedtoforeigncurrencyriskrelatingtopurchasesandsaleswhicharedenominatedinforeigncurrencies.TheGroupprimarilyutilisesforwardexchangecontractswithmaturitiesoflessthanoneyeartohedgesuchfinancialassetsandliabilitiesdenominatedinforeigncurrencies.Theforwardexchangecontractsenteredintoatthereportingdatealsorelatetoanticipatedpurchasesandsales,denominatedinforeigncurrencies,forthesubsequentperiod.


2010

Current

- Current portion of debentures 3.73 3,029.59 - 3,029.59

- Short-term loans from related parties 0.75 1,008.19 - 1,008.19

Non-current

- Long-term loans from financial institution 3.59 - 1,576.00 1,576.00

- Debentures 3.45 - 1,896.57 1,896.57

Total 4,037.78 3,472.57 7,510.35

2009

Current

- Short-term loans from related parties 0.75 731.15 - 731.15

Non-current

- Debentures 3.73 - 3,027.79 3,027.79

Total 731.15 3,027.79 3,758.94

Fixedinterestratematuring Effective After1yearbut interest Within1 within5 rate year years Total (%) (inmillionBaht)

466 467466 467



At31December,theGroupandtheCompanywereexposedtoforeigncurrencyriskinrespectoffinancialassetsandliabilitiesdenominatedinthefollowingcurrencies:



United States Dollars

Cash and cash equivalents 6 165,963 10,879 208 1,910

Trade accounts receivable 7 163,222 172,234 5,131 22,487

Trade accounts payable 18 (1,105,796) (1,212,182) (219,151) (218,940)

Other current liabilities 19 (158,508) (825) (797) -

Gross balance sheet exposure (935,119) (1,029,894) (214,609) (194,543)

Estimated forecast sales - 20,012 - -

Estimated forecast purchases (76,564) (130,703) (40,896) (36,298)

Gross exposure (1,011,683) (1,140,585) (255,505) (230,841)

Currency forwards bought 324,678 622,269 213,640 295,459

Currency forwards sold (97,903) (63,363) (86,702) (16,430)

Net exposure (784,908) (581,679) (128,567) 48,188

Japanese

Trade accounts payable 18 (239,537) (138,530) (41,822) (10,153)

Gross balance sheet exposure (239,537) (138,530) (41,822) (10,153)

Estimated forecast purchases (1,740) (153) (1,459) -

Gross exposure (241,277) (138,683) (43,281) (10,153)


Net exposure (207,965) (46,466) (10,262) 3,294





Euro

Cash and cash equivalents 6 9,663 57 - -

Trade accounts receivable 7 42,520 3,528 29,922 3,401


Gross balance sheet exposure (11,711) (69,255) (16,444) (41,510)

Estimated forecast purchases (7,027) (16,834) (6,213) (12,068)

Gross exposure (18,738) (86,089) (22,657) (53,578)


Net exposure 28,463 16,518 12,395 (928)

Singapore Dollars

Trade accounts receivable 7 33,721 - - -

Trade accounts payable 18 (578) - - -

Gross balance sheet exposure 33,143 - - -

Currency forwards bought 434 4,042 434 -

Currency forwards sold (705) - - -

Net exposure 32,872 4,042 434 -

Great Britain pound

Trade accounts payable 18 (14,118) - - -

Gross balance sheet exposure (14,118) - - -

Currency forwards bought 206 20,888 - 17,936

Net exposure (13,912) 20,888 - 17,936

468 469468 469





Other currencies

Cash and cash equivalents 6 22,503 - - -

Trade accounts receivable 7 55,674 38,455 114 -

Interest-bearing liabilities 17 (40,693) - - -


Other current liabilities 19 - (6,150) - -

Gross balance sheet exposure 6,932 1,259 (12,640) (17,758)

Estimated forecast purchases - (87) - -

Gross exposure 6,932 1,172 (12,640) (17,758)

Currency forwards bought 3,874 9,655 1,382 769

Net exposure 10,806 10,827 (11,258) (16,989)



Inordertomanagetherisksarisingfromfluctuationsincurrencyexchangeratesandinterestrates,theGroupmakesuseofthefollowingderivativefinancialinstruments:

Forwardforeignexchangecontracts

At31December2010theoutstandingforwardforeignexchangecontractsweresummarisedasfollows:

Forward contracts bought

USD 11,121 29.20 324,678 324,741 7,454 28.66 213,640 214,069

JPY 91,501 0.36 33,312 33,941 90,700 0.36 33,019 33,645

GBP 4 47.55 206 203 - - - -

AUD 83 30.06 2,492 2,611 - - - -

EUR 1,162 40.62 47,201 46,491 858 40.84 35,052 34,304

SGD 18 22.99 434 441 19 22.99 434 441

CHF 44 31.18 1,382 1,419 44 31.18 1,382 1,418

Total 409,705 409,847 283,527 283,877

Forward contracts sold

USD 2,849 34.36 97,903 97,350 2,484 34.90 86,702 86,382

SGD 31 22.83 705 720 - - - -

Total 98,608 98,070 86,702 86,382

Consolidated financial statements Separate financial statements

Average Average Currency Amount contractrate Contract Fairvalue Amount contractrate Contract Fairvalue (inthousandBaht)

470 471470 471



At31December2009theoutstandingforwardforeignexchangecontractsweresummarisedasfollows:

Forward contracts bought

USD 18,611 33.43 622,269 621,231 8,825 33.48 295,459 294,526

JPY 248,742 0.37 92,217 90,435 36,384 0.37 13,447 13,203

GBP 389 53.74 20,888 20,630 334 53.77 17,936 17,706

AUD 299 29.67 8,886 8,911 - - - -

EUR 2,102 48.81 102,607 100,643 1,084 48.58 52,650 51,904

SGD 168 24.03 4,042 3,992 - - - -

CHF 24 32.48 769 777 24 32.48 769 777

Total 851,678 846,619 380,261 378,116

Forward contracts sold

USD 1,875 33.79 63,363 63,959 490 33.54 16,430 16,276

Average Average Currency Amount contractrate Contract Fairvalue Amount contractrate Contract Fairvalue (inthousandBaht)

ThefairvaluesofforwardforeignexchangecontractshavebeencalculatedusingmarketratesquotedbytheGroup’sbankerstoterminatethecontractsatthereportingdate.

Credit risk

CreditriskisthepotentialfinanciallossresultingfromthefailureofacustomeroracounterpartytosettleitsfinancialandcontractualobligationstotheGroupasandwhentheyfalldue.

Managementhasacreditpolicy inplaceand theexposure tocredit risk ismonitoredonanongoingbasis.Creditevaluationsareperformedonall customers requiringcredit overacertainamount.At the reportingdate therewerenosignificantconcentrationsofcreditrisk.Themaximumexposuretocreditriskisrepresentedbythecarryingamountofeachfinancialassetinthebalancesheet.However,duetothelargenumberofpartiescomprisingtheGroup’scustomerbase,Managementdoesnotanticipatemateriallossesfromitsdebtcollection.

Liquidity risk

TheGroupmonitorsitsliquidityriskandmaintainsalevelofcashandcashequivalentsdeemedadequatebymanagementtofinancetheGroup’soperationsandtomitigatetheeffectsoffluctuationsincashflows.

Consolidated financial statements Separate financial statements



Determination of fair values

AnumberoftheGroup’saccountingpoliciesanddisclosuresrequirethedeterminationoffairvalue,forbothfinancialandnon-financialassetsandliabilities.Thefairvalueistheamountforwhichanassetcouldbeexchanged,oraliabilitysettled,betweenknowledgeable,willingpartiesinanarm’slengthtransaction.Fairvalueshavebeendeterminedformeasurementand/ordisclosurepurposesbasedonthefollowingmethods.Whenapplicable,furtherinformationabouttheassumptionsmadeindeterminingfairvaluesisdisclosedinthenotesspecifictothatassetorliability.

Cashandcashequivalents,tradeaccountsreceivableandshort-termloanstorelatedpartiesstatedinthebalancesheetapproximatetheirfairvaluesduetotherelativelyshort-termmaturityofthesefinancialinstruments.

Otherlong-terminvestmenthadnotsignificantlydifferentfromthecarryingvaluesstatedinthebalancesheet.

Bankoverdraftsandshort-termloansfromfinancialinstitutions,tradeaccountspayable,short-termloansfromrelatedparties,andothercurrentliabilities-thecarryingamountsstatedinthebalancesheetofthesefinancialliabilitiesapproximatetheirfairvaluesbecauseoftheshort-termperiodtomaturityofthesefinancialinstruments.

Fairvaluesofdebenturesasat31December2010and2009wereasfollows;

Fairvalueofdebenturesisbasedonmarketpriceatthereportingdate.

Fairvalueofinterestrateswapasat31December2010ofBaht12.91millionwasrecognisedasunrealisedgainonfairvalueofderivativeinthestatementofincome.

Mostofthecarryingamountsoftheotherfinancialassetsandliabilitiesapproximatetotheirfairvaluesinthebalancesheet.Informationonthefairvaluesofforwardforeignexchangecontractsaredisclosedasabove.

Consolidated Separate financial statements financial statements Carryingvalue Fairvalue Carryingvalue Fairvalue (inthousandBaht)

Debenture (fixed interest rate)

At 31 December 2010 4,926,154 4,955,663 4,926,154 4,955,663

At 31 December 2009 3,027,794 3,055,265 3,027,794 3,055,265

472 473472 473



36 Commitmentswithnon-relatedparties


Capital commitments

Contracted but not provided for

Buildings and other constructions 53,536 48,428 - -

Machinery and equipment 148,498 363,907 - -

Total 202,034 412,335 - -

Non-cancellable operating lease commitments

Within one year 84,140 67,383 - -

After one year but within five years 53,982 83,781 - -

After five years 19,543 6,636 - -

Total 157,665 157,800 - -

Other commitments

Unused letters of credits for goods and supplies 330,313 295,475 79,488 92,829

Forward contracts 484,510 788,315 397,574 385,716

Bank guarantees 292,412 264,300 197,068 114,888

Total 1,107,235 1,348,090 674,130 593,433

Asat31December2010,asubsidiaryoftheCompanyhadcommitmentswithnon-relatedpartiestopurchasegoodsandsuppliesintheamountofUSD63.96millionandYEN1,230.85million.



37 Eventsafterthereportingperiod

TheBoardofDirectors’Meetingheldon24February2011proposeda resolutionapprovingadividendpayment inrespectoftheresultsoftheoperationsin2010ofBaht0.60pershareon1,588,125,000shares,totalingBaht952.88million.TheCompanypaidaninterimdividendofBaht0.25pershare,totalingBaht397millioninSeptember2010.Theremainingyear-enddividendofBaht0.35pershare,amountedtoBaht555.84million.

However,thisresolutionissubjecttoapprovalattheOrdinaryGeneralMeetingofShareholders.

38 ThaiFinancialReportingStandards(TFRS)notyetadopted

TheGrouphasnotadoptedthefollowingnewandrevisedTFRSthathavebeenissuedasofthereportingdatebutarenotyeteffective.ThenewandrevisedTFRSareanticipatedtobecomeeffectiveforannualfinancialperiodsbeginningonorafter1Januaryintheyearindicated.

TAS 1 (revised 2009) Presentation of Financial Statements 2011

TAS 2 (revised 2009) Inventories 2011

TAS 7 (revised 2009) Statement of Cash Flows. 2011

TAS 8 (revised 2009) Accounting Policies, Changes in Accounting Estimates 2011

and Errors

TAS 10 (revised 2009) Events after the Reporting Period 2011

TAS 11 (revised 2009) Construction Contracts 2011

TAS 16 (revised 2009) Property, Plant and Equipment 2011

TAS 17 (revised 2009) Leases 2011

TAS 18 (revised 2009) Revenue 2011

TAS 19 Employee Benefits 2011

TAS 20 (revised 2009) Accounting for Government Grants and Disclosure of 2013

Government Assistance

TAS 21 (revised 2009) The Effects of Changes in Foreign Exchange Rates 2013

TAS 23 (revised 2009) Borrowing Cost 2011

TAS 24 (revised 2009) Related Party Disclosures 2011

TAS 26 Accounting and Reporting by Retirement Benefit Plans 2011

TAS 27 (revised 2009) Consolidated and Separate Financial Statements 2011

TFRS Topic Year effective

474 475474 475



TAS 28 (revised 2009) Investments in Associates 2011

TAS 31 (revised 2009) Interests in Joint Ventures 2011

TAS 33 (revised 2009) Earnings per Share 2011

TAS 34 (revised 2009) Interim Financial Reporting 2011

TAS 36 (revised 2009) Impairment of Assets 2011

TAS 37 (revised 2009) Provisions, Contingent Liabilities and Contingent Assets 2011

TAS 38 (revised 2009) Intangible Assets 2011

TAS 40 (revised 2009) Investment Property 2011

TFRS 3 (revised 2009) Business Combinations 2011

TFRS 5 (revised 2009) Non-current Assets Held for Sale and Discontinued 2011

Operations

TFRIC 15 Agreements for the Construction of Real Estate 2011

TFRS Topic Year effective

ManagementexpectstoadoptandapplythesenewTFRSinaccordancewiththeFAP’sannouncementandhasmadeapreliminaryassessmentofthepotentialinitialimpactontheconsolidatedandseparateCompany’sfinancialstatementsofthosenewstandardsassessedtohavethegreatestpotential impactonthefinancialstatementsintheperiodof initialapplication.Thesestandardsareasfollows:

TAS 16 (revised 2009) - Property, plant and equipment

TheprincipalchangesintroducedbytherevisedTAS16andaffectingtheGrouparethat(i)costsofassetdismantlement,removalandrestorationhavetobeincludedasassetcostsandsubjecttoannualdepreciation;(ii)thedepreciationchargehastobedeterminedseparatelyforeachsignificantpartofanasset;and(iii)indeterminingthedepreciableamount,theresidualvalueofanitemofproperty,plantandequipmenthastobemeasuredattheamountestimatedreceivablecurrentlyfortheassetiftheassetwerealreadyoftheageandintheconditionexpectedattheendofitsusefullife.Furthermore,theresidualvalueandusefullifeofanassethavetobereviewedatleastateachfinancialyear-end.

TherevisedTAS16permitsasatransitionalprovisionthatthesechangesmaybeintroducedprospectivelyfromtheyearofintroduction.ManagementintendstoadoptthistransitionalprovisionandaccordinglytheintroductionoftherevisedTAS16from1January2011hasnoimpactonthefinancialstatementsof2010orprioryears.ManagementiscurrentlyreviewingtheimpactonthefinancialstatementsofintroducingtherevisedTAS16from1January2011.



TAS 19 - Employee benefits

ThereiscurrentlynoThaiaccountingstandardcoveringemployeebenefits.HowevertheGrouppresentlyaccountforthecostsofpost-employmentbenefitsunderdefinedbenefitplansisshownundertheprovisionforstaffretirementbenefits(Note20).TheGroupdoesnotpresentlyaccountforthecostsofotherlong-termemployeebenefits;andterminationbenefitsuntilsuchcostsareincurred.ThenewTAS19includestherequirementstorecogniseandaccountforsuchcostsintheperiodinwhichtheserviceisperformed.Therequirementsarecomplexandrequireactuarialassumptionstomeasuretheobligationandexpense.Moreover,theobligationsaremeasuredonadiscountedbasisbecausetheymaybesettledmanyyearsaftertheemployeesrendertherelatedservice.ThetransitionalprovisionsofTAS19permitthetransitionalliabilitytoberecognisedandaccountedforinoneoffourdifferentways:

(i) retrospectively;

(ii) immediatelyinequity(retainedearnings)atthetransitiondate;

(iii) immediatelyinprofitorlossatthetransitiondate;

(iv) asanexpenseonastraight-linebasisoveruptofiveyearsfromthetransitiondate.

ManagementiscurrentlyreviewingtheimpactonthefinancialstatementsofintroducingthenewTAS19from1January2011.

476 PB


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