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CPL_2012 C.P.L. GROUP PCL Annual Report 2012
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Contents
Message from Chairman ...................................................................1
Audit committee’s Report ................................................................2
The Board of Directors’ Report on the Accountability
of the Company’s Financial Reports .............................................3
General Information ...........................................................................4
Summary of Financial Information ...............................................6
Business Review ...................................................................................7
Factors of Risk .................................................................................... 10
Structures of Shareholder and Management ........................ 11
Transactions between Company and Affiliates ..................... 25
Management Discussion and Analysis ..................................... 26
Independent Auditor’s Report ..................................................... 28
Financial Statement ......................................................................... 29
Note to Financial Statements ....................................................... 35
The Remuneration in 2012 for Auditor .................................... 60
1Annual Report 2012 C.P.L. Group Public Company Limited
In thepast year, there hadbeen continuous inflation from theprevious year,which theprice of
consumergoodsincreasedoneafteranother,andthefluctuationintheeconomy,finance,social,andpolitics
aroundtheworldthroughoutthewholeyearcausedthepriceofrawhidestosoartomorethanUSD100
perhides,whichwasunprecedented.Thiswasduetolowerbeefconsumptioncausingcowhide’spricetobe
veryexpensivebecauseoflowersupply.
Normally,shoesmanufacturingindustrymainlylikestousefullgraincowhidetomakeshows,butdue
tothehighpriceofrawhide,themarket’sbehaviorhaschanged.Shoesmanufacturingcompanyturnedto
splitcowhide,whichisacheapershoesproduct,asrawmaterialinmakingleathershoesinsteadoffullgrain
cowhide,whichhasbetterqualitybuthashigherprice.And,tosurvive,thecompanyhasexperiencedthe
mostdifficultbarrierinbusinessoperationinthismatterbecauseofhighcowhidescostbutonlythesales
forsplitcowhideshasincreased,whilefullgraincowhidessaleshasdecreasedcausingrevenuetodecline.
However,in2013,byclosingmonitoringtheeconomy,itisexpectedthatglobaleconomywillstillbe
fluctuatingandinflationwillstillcontinuetobehigh,andthedirectionofoilpriceandvariousproductswillstill
likelytobecontinuouslyhigh,aswellasminimumwagehasbeenincreasedtoTHB300perday,whichwill
beeffectivenationwidethisyearaccordingtothegovernment’spolicy.Thiscausesmanycompaniestobeeven
moreefficientinthemanagementforsurvival.Thisyear,thecompanyhasapolicytomakethisyearayear
ofdesigningnewproductstoaddvaluetotheproductitself,genuinelycontrollingproductquality,production
cost,andexpensestobecompetitiveandforsurvival,whichthecompanymustinevitablyoperateaccording
tothisguideline.Thecompanyhaspreparedanannualplaninadvance,whichmustbestrictlyandespecially
followedthisyear.
Thisyear,Iwouldliketoencourageallexecutivesandstaffstomaintaingoodphysicalandmental
health inorder toworkaccording to theguideline,and Iamconfident that thecompanywillbeable to
overcometheobstaclelikeeveryyearinthepast.
TheChairman
Mr.ManochWongcharoensin
Massage from Chairman
2Annual Report 2012 C.P.L. Group Public Company Limited
TheauditcommitteeofCPLGroupPublicCompanyLimitedcomprisingofChairmanof theAuditCommittee,Mr.KamhtornVathanalaohaandauditcommitteememberMr.SukhoVoddhtijotiandMr.MongkolLaoworapongheld5meetingsduringthelastaccountingyearendingDecember31,2012.Companyexecutives,externalauditorandotherconcernedofficershadattendedallsuchmeetingtoclarifyissuesontheagendaoftheirconcernsuchasauditingresultsonfinancialstatements,internalauditingresultsaswellasthecompany’srisksmanagement.Allresolutionofthemeetingsaresummarizedasfollows:
1. Annual Financial Statements
Financialstatementsof theCompanyhavebeenprepared inaccordancewith theAccountingActB.E.2543andaccountingstandardsasrecommendedbytheFederationofAccountingProfessionUndertheRoyalPatronageofHisMajestytheKing,andcertifiedbyauthoritiesconcerned.Relevantinformationhasbeensufficientlydisclosedinthefinancialstatements.Anysuggestionrecommendedbytheexternalauditorwouldbereflectedinaccountingrecordscorrectlyandappropriately.
2. Internal Control System
TheCompanyhassufficientinternalcontrolsystem.InternalauditorsofthecompanyconductedinternalauditingaccordingtotheplansetupannuallybytheAuditCommittee.InternalcontrolwasevaluatedbyusingmeasuresfromsuggestedbytheStockExchangeofThailandcoveringorganizationandenvironment,managementoperatingcontrol,informationsystem,communicationandmonitoringcontrol.Theevaluationresultswerefairlygood.
3. Risk Management
TheAuditCommitteehasjoinwithmanagementteamtoknowonfinancialrisk,operationalrisk,businessriskandexternalfactorsthatareuncontrollable,Soasthemitigateriskstoacceptablelevelortoinitiateremedialmeasures.Themanagementteamwasassignedtomonitoroperationresultsascomparedtoprice,andrawmaterialpricewhichhavedirectorimpactonproductioncostofourproduct.
3. Appointed the company auditor and remuneration
TheAuditCommitteerecommendedtheBoardofDirectortoproposetotheAnnualGeneralMeetingofShareholdertoappointtheCompany’sAuditorsfromS.K.AccountantServicesCo.,Ltd,asMs.WanrayaPuttasatienCPANo. 4387,Ms.ChantraWongsriudompornCPANo. 4996 for the accounting year endingDecember31,2013withtheremunerationamountof515,000baht.
Mr.KamthonVathanalaoha ChairmanoftheAuditCommittee
Audit Committee’s Report
3Annual Report 2012 C.P.L. Group Public Company Limited
รายงานความรับผิดชอบของคณะกรรมการบริษัทฯต่อรายงานทางการเงิน
TheBoardofDirectorisaccountableforcorrectnessoffinancialstatementsofCPLGroup
LimitedCompanyincludingfinancialinformationpresentedintheAnnualReportandform56-1.
TheCompanyhasadoptedappropriateaccountingpoliciesconsistentlyappliedandconformed
togenerallyacceptedaccountingstandards.Also,significantinformationwassufficientlydisclosed
innotestofinancialstatementforproperbenefitstoshareholders,investorsandstakeholders.
FinancialStatementof theCompanyhavebeenauditedbyS.K.AccountantServices
Co.,,Ltd,auditoroftheCompany.TheBoardofDirectorshassupportedtheauditorwillallnecessary
informationanddocumentssothatexternalauditorcouldaudittheandexpresshisopinionin
accordancewithaccountingstandards.TheexternalauditorhasexpressedhisopinioninAuditor’s
Report.
TheBoard ofDirector has appointed anAuditCommittee to be responsible for the
reviewingaccountingpolicies,qualityoffinancialreports,internalcontrolsystem,riskmanagement
system.TheAuditCommitteehasexpressedtheiropinionintheAuditCommittee’sReportas
showninthisAnnualReport.
TheBoardofDirectoropinesthatmanagerialstructureandinternalcontrolsystemofthe
Companywassatisfactory.TheCompany’sauditordidnotqualifyorraisedanyspecificobservation
theCompany’sfinancialstatement.SowecouldassuredthatfinancialstatementofCPLGroup
PublicCompanyLimitedasatDecember31,2012presentfairly inallmaterialrespectsthe
financialposition,performance,andcashflowinaccordancewithgenerallyacceptedaccounting
principlesandotherrelevantlawsandregulations.
Mr.LaiChiHsiang
ManagingDirector
The Board of Directors’ Report on the Accountability of the Company’s Financial Reports
4Annual Report 2012 C.P.L. Group Public Company Limited
CPL Group Public Company Limited
CPLwasfoundedin1989byateamofinternationalmanagerswithmorethan40yearsofexperience
]in the tanning industry. The founders comprised of leaders in modern tannery management, skilled
techniciansandstrongmarketingteams.CPLGroupPublicCoLtd.locatedat700moo6,SukhumvitRoad,
TambolBangpoomai,AmpourMuang,Samutprakarn10280,Thailand,isregisteredwithacapitalissuedand
paidupof20millionbahtonJune28,1989toproducebovineleathersuppliestoThailocalandoverseas
shoesandleathergoodsmanufacturers.
Becauseof its successfulperformance,CPLbecameaPublicCompanyandamemberofStock
ExchangeofThailand(SET)onJanuary27,1994,andknowasCPLGroupPublicCompanyLimitedwitha
capitalissuedandpaidupof240millionbahtdividedinto24millionordinaryshareswithpersharevalueof
10baht.Subsequently,theAnnualExtraordinaryShareholdersMeetingfor2005hadunanimouslyresolvedto
increaseditsregisteredcapitalfrom24m.sharesto26.4millionshareeachof10baht,totalvalue264million
bahttosupporttheissuanceofdividendsharespursuanttotheresolutionofOrdinaryShareholdersMeeting
for2005ofwhichthecompanyhadsubsequentlyissuedthosedividendsharesandregisteredtoincreaseits
capitalwithMinistryofCommerceon1June2005.
Associated Company
Duringtheyear2001and2002,thecompanyhadinvestedanewjointventurecompanyinHong
KongnamedCPLInternationalCo.,Ltd.andhadbeenbuiltupatanneryinGuangzhou,China.CPLinternational
Co.,Ltd.issuedandpaidupsharecapitalUSD7millionordinaryshare@USD1,andhadincreasedcapital
fromUSD7milliontoUSD8millionordinarysharein2004.CPLhadinvested15%fromtotalsharecapital
ofCPLInternationalCo.,Ltd.
General Information
5Annual Report 2012 C.P.L. Group Public Company Limited
Other References
1. Stock Registration ThailandSecuritiesDepositoryCo.,Ltd.
62RatchadapisekRoad,Klongtoey,
Bangkok10110,Tel.02359120001
Fax.02-359-1259
2. Certified Public Accountant S.KAccountantServicesCo.,Ltd.
Ms.WanrayaPuttasatienCPANo.4387
Ms.ChantraWongsriudompornCPANo.4996
14thfl.PayataiPlazaBuildingNo.128/150-153
Tel.02-214-6464,Fax.02-215-4772,02-214-6065
3. Lawyer Consultant PayabKamartLawyerOffice
45/15Moo1BangrateakSampran
Nakornpatom73210
Tel.081-814-0793
6Annual Report 2012 C.P.L. Group Public Company Limited
(Unit:ThousandBaht)
Financial Statement Data 2012 2011 2010
TotalAsset 1,126,771 1,159,305 1,123,263
TotalLiabilities 170,239 192,678 173,463
TotalShareholder’sEquity 956,531 966,627 949,799
SalesRevenue 1,736,968 1,759,933 1,986.492
TotalRevenue 1,768,850 1,777,774 2,004,599
NetProfit 42,704 81,824 66,018
NetProfitpershares 1.62 3.10 2.50
BookValuePershares 36.30 36.61 35.97
Financial Ratio 31 Dec. 31 Dec. 31 Dec.2012 2011 2010
CurrentRatio 5.85 4.62 4.72
Returnonrevenue (%) 2.41 4.60 3.29
ReturnonShareholder’sequity (%) 4.46 8.47 6.95
ReturnonAsset (%) 3.79 7.06 8.43
Debt/EquityRatio 0.18 0.17 0.18
DividendPerShare (Baht) 1.75 2.00 1.75
Summary of Financial Information
7Annual Report 2012 C.P.L. Group Public Company Limited
Business Review
Revenue Structure
Revenue Structure of CPL Public Company Limited
Revenue2012 2011 2010
MillionBaht % MillionBaht % MillionBaht %
SalesRevenue 1,736.97 98.20 1,759.32 99.00 1,986.49 99.09
OtherIncome
IncomefromTaxRefund 13.90 0.79 4.09 0.23 6.93 0.35
GainonExchangeRate 15.33 0.87 10.58 0.60 7.52 0.38
InterestIncome 2.41 0.13 2.44 0.14 2.70 0.13
Other 0.24 0.01 0.70 0.03 0.96 0.05
TotalRevenue 1,768.85 100.00 1,777.74 100.00 2,004.60 100.00
Business Operation
Thecompanyoperatecompleteleathertanningfactory,whichthemainproductisfullgrainleather,
suedesplitleather,andwetblue,whicharethestartingproductsforleathershoes,leatherbags,leatherfurniture,
leathercarseats,andalltypesofleatherproductsthatusegenuineleather,whichdomesticandinternational
salesratioisbetween50:50to75:25,whichisuncertaindependingonthechangeineachyear.
MostcustomersareshoesmanufacturesinChina,Indonesia,Vietnam,andotherAsiancountrieswho
manufactureshoesforpopularshoesbrandssuchasAdidas,Timberland,Lactose,Mark&Spencer,andRockport,
etc.,whicharestandardproductacceptedbypopularbrandsaroundtheworld.Thecompanyoperatesunder
ISO9001in2008,andISO:TS16949in2009.Furthermore,thecompanyhasbecomeamemberofSatraTechnol-
ogyCenterinEngland,whichisaninstitutionfordevelopingworldclassleather,andwonagoldmedalfrom
LWGenvironmentalStewardshipAudit.Currently,thecompanyisapplyingforISO14001.
Change in Year 2012
Lastyearthesituationforlowerbeefconsumptionbecomerawhidesincreasecontinuouslywithout
anysignofceasing.AttheendoflastyearrawhidespriceuptoUSD100perhidesThisisinfluencethe
customerstochangebehaviorfromordercowfullgraintocowsplitwhichislowpriceandquantitylessthan
cowfullgrainstartfromtheyear2010continueto2012
8Annual Report 2012 C.P.L. Group Public Company Limited
TheChanginginyear2012stillcontinuesfromlastyear,thecompanyhasextendedcustomerbase
inCambodiaandBangladeshandstillincreases.Inordertosurvivetorunthebusinesstheshoesfactory
hadchangebehaviortobuysplitleatherfortheirproductbecauseofrawhidespriceincreasetheCompany
needstocreatenewproductstooffertocustomerbydirectsales,canpresentournewproductandmoving
toladyshoes.Fortheoffice,CPLstarttorunthecomputersystemonyear2013
ForEnvironments,CPLhadstartnewmachinetosplitwastefromwaterintanneryprocess,inthe
partofwatertreatmentbeforeflowtopublic
Marketing and Product Distribution
In2012,marketingforleathershoeshaschangedtousingmorecowsplitthanotheryearsinthepast
becauseitischeaperthanfullgrain,whichisrawmaterialthathasbecomemoreexpensivesincethemiddle
oflastyearandstillcontinuetorisetomorethanUSD100rightnow.Therefore,leathershoesmanufacturers
turnedcowsplitmorebecauseitischeaperthanfullgrain,whichisconsideredasreducingthecostofshoes
manufacturingbecauseitisimpossibletobearthecostoffullgrainthathasbecomeveryexpensive.Last
year,therewasaninitiativeandefforttoenternewmarketsinCambodiaandBangladesh,whichcontinues
toincreaseatthemoment.MostorderstillcomefromshoesmanufacturersinChina,Vietnam,andIndonesia
likeinthepastmanyyears.
However,thecompanymuststillmaintainproductqualitystandardandreliabilityintermsofontime
deliverybecauseintanningbusiness,besidesquality,punctualityinthedeliveryisthemostimportanttomaintain
customerbaseaswellasgettingnewcustomerstoexpandcustomerbaselikewhatwehavebeentryingto
doatthemoment.
Intermsofmarketingandsales,originally,thecompanyusedthestrategyoforganizingboothshowcasing
productsoverseas,whichisamethodforapproachingcustomersbutthereislimitationintermsofmarketing;
lownumberofcustomers,becausemustseeandhavegenuineinterestintheproductonly.However,thisyear,
thecompanyistryingtofocusonthestrategyofmeetingmorecustomersdirectlytocreateopportunityto
explaincharacteristicsandproperties,andrecommendmorenewproductstocustomers,notjustsellingold
products,whichiscreatingmoreincome.Atthesametime,itisalsoexpandingproducttypestohavemore
varietiesintermsofquantity,price,andcustomerstolowersalesrisk.Todothis,R&Ddepartmentmustmake
newproductstoincreasevarietyofproductstofeedtocustomersworldwide,orfocusonnewinnovationas
analternativeforcustomersincreasevalueoftheproductandmaintaingoodperformancecontinuouslyinthe
situationwherethecostishighsuchasnow.Furthermore,Thecompanymuststrictlymaintainproductquality
thatmatchestheorder,bepunctualintermsofproductdeliveryaswellbecauseshoescompanytreatthese
twomattersseriously.Regardingtheabovestrategyofaddingnewinnovation,thecompanyisfamousforand
expertofinthepast,andlastyear,thecompanydevelopedanddesignedalmost100typesofnewproducts,
whichismorethananyyearinthepast.
9Annual Report 2012 C.P.L. Group Public Company Limited
Production and Market Competition Trend
Forlastyear,tanningfactoryisinadifficultsituationtomakeaprofit,i.e.costofrawmaterialisstill
likelytocontinuetoincreasewhilethisburdencannotbepushedawaybyincreasingsalepricetocompensate
foralloftherisingcost.Therefore,itislikelythatsmalltanningfactoriesmustshutdown,leftonlyfewbig
factoriesinthenearfuturebecauseoftheburdenofhighcostofrawmaterial.Furthermore,thereisstilllabor
costandexpensesthatriseaccordingtotheinflation,whichmakesitdifficultforsmallcompaniestosurvive.
Intermsofcompetition,itisnotmuchaworrybecause,currently,thecompanyisconsideredoneof
thefewbigmanufactures.Therestsaresmallcompaniesthatarelikelytostruggletosurvivefortheabove
reason.Thecompanymustlookfornewwaystosurvivelikesmallcompaniesaswellsuchasconsidering
tanningforotherproductssuchasleatherbagsorcarseats,whichhasincreasedalotinthepast2-3years,
becausethecompanydoesnothavetoinvestalotasitisstillinsimilarbusinessesandmostfactorsfor
productionarealreadythere.Furthermore,thecompanymuststillfindasolutionforcowsplitshortage,i.e.
market behavior has turned to cow split more and uses full grain less causing cow split shortage and
overstockedfullgrain.Therefore,thecompanymustfindwaytoreleasesomeofthefullgrainbylookingfor
carseatbusinesstosupporttheremainingfullgrain.Atthesametime,itisalsotomaintainprofitatsimilar
level is maintaining stable performance in the difficult situation mentioned above. In terms of marketing,
competitionwillbemoreintenseintermsofprice,quality,ontimedelivery,andlaunchingnewproductsto
matchcustomer’sneed,andthereshouldnotbemanycompetitors.
Atthemoment,thecompanyhasconsideredsellingwetblueandcrusttonewclientsinorderto
allowcontinuousproductionintoothertypesofproductotherthanshoes,which2-3Japanesecompanieshave
madenewinvestment.
Fortheoverseasmarket,thecompanylaunchedanewmarketinBangladeshandCambodialastyear,
whichthecompanytriestomaintainandincrease.Atthesametime,thecompanyalsowentintoIndiatoopen
amarketthereaswell.Thecompanyalsotriestomaintainitsmainmarket.Tomaintainoverseasmarkets,the
companymustmaintainamajormarketcompetitionfactor,i.e.productqualitymustmatchcustomer’sspec,
andproductdeliverymustonschedule.Thesetwothingsarehighlyimportancetocustomers,whichrequires
efficientmanagement,whichthecompanyhasdoneverywellinthepast.
10Annual Report 2012 C.P.L. Group Public Company Limited
Factor of Risk
Risk from Operation
Lastyear,thecompanyhasaproportionofdomesticsalesof20%,andinternationalsalesof80%due
tothecompanyhasexpandedinternationalmarketsbysellingtomorecustomersinBangladeshandIndia,which
thesalesweremadewith15dayscredittermofthegoodsdeliverydate.Therefore,itisaslightincrease
ofariskcomparetonoriskatallbefore.Forotherinternationalclients,salesweredonebyopeningL/C,or
clientswereaskedtomakeadvancepaymentforthegoods.Fordomesticsales,wesoldtocompanieswith
financialstabilityandgooddebtpaymentabilitybecausethecompanyhasbeentradingwiththeseclientsfor
alongtime,sowebelievethatthecompanyhasnosignificantriskfromthedebtornotmakingdebtpayment.
However,thecompanyhassetsufficientallowancefordoubtfuldebtfordebtor.
Risk from Credit Terms
TheCompanyisselling20%ofitsproductdomesticallyandtheother80%totheOversealmarket.
FromnewmarketinBangladeshandIndiawhichhadcreditterm15days.Forotherexportsaleshavebeen
operatedincash,prepaid,orbyL/Cterms,whichisloan-riskfree.Fordomesticsales,alltransactionsare
withmajorcustomerswithgoodcreditsothattheloanriskislow.However,wefindfoundlatelythatsome
customersfailtopay,ordelaypayment,butonlyinsmallproportioncomparedtothetotalsales.TheCompany
monitorsandevaluatescloselythesecustomerstoallowasufficientbaddebtreserve.
Risk of Exchange Rate Fluctuation
Themainrawmaterialofthecompanyinmanufacturingfullgrainleatheriswetsaltedcowhide,allof
whichareimportedfromoverseas.In2012,USD29.9millionofrawmaterialwaspurchased,whichisequivalent
toTHB933.56million.ChemicalsimportedfromoverseascostUSD3.46millionorTHB108.17million,whichwas
purchaseddirectlyfromoverseasdistributer.Therefore,thecompanyhasariskofexchangeratefluctuation.At
thesametime,80%ofthecompany’ssalesweremadetooverseas.Paymentwasmadeinthesameforeign
currency,i.e.USD.Therefore,thecompanyusedthemoneyfromsalestopayforrawmaterial(matching).
ThecompanyhasincomefromoverseassalesofUSD45.58millionorTHB1.405.85billion.Therefore,trading
inoverseasmarketisconsideredtohavelowriskintermsofexchangeratefluctuationbecauseincomeand
expenseinforeigncurrencyissimilarinproportion.However,thecompanyhasenteredintoaforwardforeign
currencyexchangetradingagreementfromtimetotimeincasetheexchangeratehashighfluctuation.
11Annual Report 2012 C.P.L. Group Public Company Limited
Structure of Shareholder and Management
Shareholder
Thereareregisteredcapital26.4Millionshare,10bahtpershareandallissuedandpaid-up.
ThenameofshareholdersasatMarch14,2013asclosingdate.Thereare939persons,Thaisholder920personsandforeignholder19persons
GroupofTopTenShareholders
NameofGroup Share/million %
1. ChareonsinHoldingCo.,Ltd. 10.03 38.00
2. Mr.ChenJuYing 2.83 10.74
3. ThaiNVDRCo.,Ltd. 2.58 9.77
4. Ms.NuchnapaWongcharoensin 1.00 3.80
5. Mr.ChenRuiTeng 0.93 3.19
6. Mr.LaiChiHsiang 0.67 2.53
7. Ms.WalairatSilchevakijja 0.46 1.75
8. Mr.KuoShihLun 0.46 1.75
9. Mr.ManitWongcharoensin 0.45 1.71
10. Mr.VichernSrimuninnimit 0.45 1.71
GroupofMajorShareholders
1. CharoensinGroup 13.16 49.85
2. ChenGroup 3.76 14.30
Dividend Policy
Thecompanyhavedividendpolicytoshareholderaround60%ofnetprofitfromeachyear.
12Annual Report 2012 C.P.L. Group Public Company Limited
Management Structure
Mr. Manoch WongchaorensinChairman
Mr. Lai Chi HsiangManagingDirector
Mr. Kuo Shih LunDirector/DeputyManagingDirector
Mr. Suwatchai WongcharoensinDirector/DeputyManagingDirector/
CompanySecretary
13Annual Report 2012 C.P.L. Group Public Company Limited
Mr. Kitichai WongcharoensinDirector/SalesCenterManager
Mr. Puvasith WongcharoensinDirector
Mr. Kamthon Vathanalaoha Director/IndependentDirector
ChairmanofAuditcommittee
Mr. Sukho VoddhijotiDirector/IndependentDirector/
Auditcommittee
Mr. Mongkon Laoworapong Director/IndependentDirector/
Auditcommittee
14Annual Report 2012 C.P.L. Group Public Company Limited
Board of Directors’ Structure
BoardofDirectorsconsistsofpersonswithknowledgeandexperience,whichhave important rolein policy making and organization’s overview, including important role in regulating, inspecting, evaluatingperformanceofthecompanytoensurethatitisaccordingtotheplan,aswellasoperatethecompany’sbusinessaccordingtothelaw,regulation,andshareholdersmeeting’sresolution,includingregulatingmanagement’sadministrationtobeaccordingtothetargetandguidelinedetermined,andleadtobestinterestofthecompanyandshareholders.
BoardofDirectors’structureconsistsofindependentdirectorsofmorethan1in3ofdirectorsinthewholeboard,whichwouldmaintainthevotingbalanceintheconsiderationofvariousmatters,andthereisanAudiCommittee,whichconsistsof3independentdirectors.
Currently,BoardofDirectorshas9directors,whichconsistsof6directorswhoaremajorshareholders’representatives,and3independentdirectorswhoarealsodirectorsintheAuditCommittee.Numberofthecompany’sindependentdirectorsisaccordingtotheruleofSEC,whichdeterminesthatonethirdoftotalnumberofdirectorsmustbeindependentdirectors.
Accordingtothecompany’sregulation, ineveryAnnualGeneralMeeting,at leastonethirdofthedirectorsmustretire.Ifnumberofdirectorscannotbedividedintothreeparts,numberofclosesttoonethirdshallapply.Directorthatmustresigninthefirstyearandthesecondyearafterthecompany’sregistration,adrawmustbemadetoselectwhowillberesigning.Forthesubsequentyears,directorsinthepositionthelongestshallretire.However,retireddirectormaybereelectedasdirector.
Furthermore,BoardofDirectorshasappointedsubcommittees,whichconsistsofExecutiveCommitteeandAuditCommitteetohavespecificfunctionandmakeproposaltoBoardofDirectorsforconsiderationoracknowledgement,whichsuchsubcommitteeshavetherightasdeterminedintheauthorityofeachsubcommittee.
The Board of Director
CompanyCommitteecanbedividedinto3setsasfollows:
BoardofDirectorsasatMarch1,2013have9personsasfollow
Name Position
1.Mr.ManochWongcharoensin Chairman
2.Mr.SuwatchaiWongcharoensin Director
3.Mr.LaiChiHsiang ManagingDirector
4.Mr.KuoShihLun Director
5.Mr.KitichaiWongcharoensin Director
6.Mr.PuvasithWongcharoensin* Director
7.Mr.KamthonVathanalaoha Director/ChairmanofAuditcommittee
8.Mr.SukhoVoddhijoti Director/Auditcommittee
9.Mr.MongkonLaoworapong Director/Auditcommittee
*NewdirectorappointonBoardofDirectorNo.1/201327February,2013
15Annual Report 2012 C.P.L. Group Public Company Limited
IneveryAnnualGeneralMeeting,atleastonethirdofthedirectorsmustretire.Ifnumberofdirectorscannotbedividedintothreeparts,numberofclosesttoonethirdshallapply.Directorthatmustresigninthefirstyearandthesecondyearafterthecompany’sregistration,adrawmustbemadetoselectwhowillberesigning.Forthesubsequentyears,directorsinthepositionthelongestshallretire.However,retireddirectormaybereelectedasdirector.
ScopeofDutyandResponsibilityofBoardofDirectors;
1. Mustperformdutyincompliancewiththelaw,objective,regulationofthecompany,aswellas
shareholdersmeeting’sresolution,exceptforthematterthatrequiresapprovalfromshareholders
meetingbeforeoperationsuchasthematterthatthelawrequiresshareholdersmeeting’sresolution,
connectedtransaction,andbuyingorsellingsignificantassetaccordingtotheruleofSET,oras
determinedbyotherstateagencies,etc.
2. Determineorchangethenameofauthorizeddirector.
3. Determinepolicy,strategy,anddirectionofthecompany’sbusinessoperation,andregulatemanagement’s
operationtoensurethatitisaccordingtothedeterminedpolicy,strategy,anddirectionefficiently
andeffectivelytoaddmaximumeconomicvalueforshareholdersandsustainablegrowth.
4. Considermakingdecisiononsignificantmatterssuchasbusinessplan,budget,largeinvestment
project,managementpower,andotheritemsasdeterminedbythelaw.
5. Evaluateperformanceanddetermineconsiderationforthemanagement.
6. Responsibleforperformanceandoperationofmanagementwithdeterminationandcare inthe
operation.
7. Providereliableaccountingsystem,financial reportandaccountingaudit,aswellasprovidea
process forassessingsuitabilityof internalcontrol,and internalaudit toensureefficiencyand
effectiveness,riskmanagement,financialreport,andresultmonitoring.
8. Preventconflictinginterestbetweenstakeholdersandthecompany.
9. Regulatebusinesstoensureethicaloperation.
10.Determineinternalregulationorruleofthecompanyinvariousmatters.
11.ReportresponsibilityoftheBoardofDirectorsinpreparingfinancialreportbypresentingittogether
withtheauditor’sreportintheannualreport,andcoverimportantmattersaccordingtothepolicy
ofgoodpracticefordirectorsoflistedcompanyinSET.
The Audit Committee
ThenameoftheBoardasMarch1,2013
1.Mr.KamthonVathanalaoha Chairrman
2.Mr.SukhoVoddhijoti Committee
3.Mr.MongkonLaoworapong Committee
4.MissArjareeSuphasinwongchai Secretary
16Annual Report 2012 C.P.L. Group Public Company Limited
1.Reviewandcontrolthecompanytomanagecorrectandreasonablefinancialreport
2.Reviewandcontrolthecompanytoarrangethesuitableandefficientinternalcontrolandaudit
3.Reviewandcontrolthecompanytocomplywiththelawconcerningsecurityandsecurityexchange,
stipulationofSETorotherlawsrelatedtothecompany’sbusiness.
4.Consider,recruit,propose,appointandproposetheremunerationoftheauditor.
5.Consider,disclosetheinformationofthecompanyincaseofthereisanyrelateditemoranyitem
whichmayobjectagainstbenefittobecorrectandcomplete.
6. Prepare report of Audit Committee expressly recorded in annual report duly signed by the
ChairmanoftheAuditCommittee.
7.ConductotherbusinessbeingassignedbytheBoardofDirectorsundertheapprovaloftheAudit
Committee.
Executive director
whoisauthorizedcommitteeofthecompanyatMarch1,2013have5personsasfollow.
1.Mr.ManochWongcharoensin
2.Mr.SuwatchaiWongcharoensin
3.Mr.LaiChiHsiang
4.Mr.KuoShihLun
5.Mr.KitichaiWongcharoensin ScopeofdutyofExecutiveCommittee
1. Determinepolicy,direction,strategy,andstructureofmainworkmanagementinthecompany’s
businessoperationthatisdeterminedtobeconsistentandsupportiveofeconomicconditionand
competitiondeterminedandstatedtoshareholderstoproposeforBoardofDirectors’approval.
2. Determinebusinessplan,budget,andmanagementpowersofthecompanytoproposetoBoard
ofDirectorsforapproval.
3. Determineorganizationalstructureanddeterminemanpowerpolicy,whichshallcovertheoverview
inselecting,training,hiring,creatingreplacementexecutive,aswellasresultevaluationandrule
fordeterminingconsiderationofemployeeatalllevel.
4. Verify andmonitor policy and guideline for management in various aspects of the company
determinedtobeefficientandfacilitativetobusinessoperationcondition.
5. Verify and monitor the company’s performance determined to be in according to approved
businessplan.
6. Preparefinancialtransactionwithfinancialinstitutioninopeningaccount,loan,pledge,mortgage,
guaranteeandotheractionsincludingtradingandregisteringanylandownershipaccordingtothe
objectivefortheinterestofthecompanybusinessoperationunderdeterminedamount.
7. MonitorresultofmanagementsystemdevelopmentandotheroperationsasassignedbytheBoard
ofDirectorsfromtimetotime.
17Annual Report 2012 C.P.L. Group Public Company Limited
BoardofDirectorshasappointedthecompany’ssecretarytoperformdutyandresponsibilityaccordingtoSecuritiesandExchangeAct.
NameofManagementTeamatMarch1,2013
1.Mr.ManochWongcharoensin Chairman
2.Mr.SuwatchaiWongcharoensin Director/Companysecretary
3.Mr.LaiChiHsiang ManagingDirector
4.Mr.KuoShihLun Director
5.Mr.KitichaiWongcharoensin Director
6.Mr.SinghaWongrujipairoj ChiefFinancialOfficer
7.Mr.SomphongWongrujipairoj DomesticMarketingManger
8.Ms.ChutimaKititarakul OverseasMarketingManager
9.Ms.TanyatornApichatvicheanchot AccountingManager
10.Ms.ArjareeSuphasinwongchai FinanceManager/secretary
DirectorandExecutiveRecruitment
For recruitingperson tobe thecompany’sdirector, thecompanyallowsshareholders tonominatequalifiedpersonwhohasexperienceandsuitablepotentialtobethecompany’sdirectorintheannualgeneralmeetingofshareholders.Eachshareholdermaycastavailablevotetoselectonepersonormanypersonstobedirectors.However,votesmaynotbedividedunequally,whichthosewithskillandexperiencenecessaryforthecompany’sbusinessoperationwillbeprioritized,whichthefollowingqualities;
1. Having quality according to Limited Public Company Act, Security and Exchange Act, Rule of SEC,
rule of SET, and the company’s good corporate governance.
2. Havingvarietyofknowledge,ability,andexperienceinvariousfieldsofoccupationthatwillbeuseful
and add value for the company.
3. Having attributes the supports and encourages business regulation to create value to the company,
perform duty with Accountability, Care and Loyalty, and fully dedicated.
Independent Director
TheCompanydetermines components forBoard ofDirectors tobe consisting of at least 1/3 ofindependentoftotalnumberofthecompany’sdirectors.
BoardofDirectorsdeterminesqualitiesofindependentdirectorasfollows;
1. Holdsharesnomorethan1.0%oftotalnumberofsharewithvotingrightofthecompany,headoffice,
subsidiary, joint company, major shareholder, or person with power to control the company, which
shall also include shareholding of related person of that independent director.
2. Not being or never been a director involved in management, employee, consultant who receives
regularsalary,orpersonwithcontrollingpowerofthecompany,headoffice,subsidiary,jointcompany,
subsidiary at the same level, major shareholder, or of person with controlling power of the company,
except being freed from such characteristic for at least 2 years before being appoint as independent
director.
18Annual Report 2012 C.P.L. Group Public Company Limited
3. No blood relationship or by registration according to the law in the manner of father, mother, spouse,
sibling, and child, including spouse of the child, of executive, major shareholder, person with controlling
power, or person to be nominated as executive or person with controlling power of the company or
subsidiary.
4. Nothavingorneverhavebusinessrelationshipwiththecompany,headoffice,subsidiary,jointcompany,
major shareholder, or person with controlling power of the company in the manner that is preventing
one’s independent judgment, including not being or never been implied shareholder or person with
controlling power of the company, except being freed from such characteristic for at least 2 years
before being appoint as independent director.
5. Notbeingorneverbeenanauditorof thecompany,headoffice, subsidiary, jointcompany,major
shareholder, or person with controlling power of the company, and not being implied shareholder,
personwithcontrollingpower,orpartnerofaudit firmthathasauditorofthecompany,headoffice,
subsidiary, joint company, major shareholder, or person with controlling power of the company, except
being freed from such characteristic for at least 2 years before being appoint as independent director.
6. Not being or never been service provider in any profession, including providing service of legal advisor
orfinancialadvisorwhoreceiveservicefeeofmorethanTHB2millionperyearfromthecompany,head
office,subsidiary,jointcompany,majorshareholder,orpersonwithcontrollingpowerofthecompany,
and not being implied shareholder, person with controlling power, or shareholder of service provider in
that profession, except being freed from such characteristic for at least 2 years before being appoint
as independent director.
7. Not being a director that was appointed as director’s representative of the company, major shareholder,
or shareholder who is related to major shareholder.
8. Not operating a business that has the same condition, and is an implied competition with business of
the company or subsidiary, or not being an implied partner in a partnership, or is a director involved
in management, employee, employee, consultant who receives regular monthly salary, or hold share
more than 1.0% of total shares with voting right of other company, which operate a business that has
the same condition, and is an implied competition with business of the company or subsidiary.
9. Not having any other characteristic that cannot provide independent comment regarding the company’s
operation.
Audit Committee Board of Directorsappointsatleast3auditcommitteememberstobethecompany’sauditcommitteemembers.EachauditcommitteemembermustbeanindependentdirectorandmustnotbeadirectorassignedbyBoardofDirectorstomakedecisioninbusinessoperationofthecompany,headoffice,subsidiary,jointcompany,subsidiaryatthesamelevel,majorshareholder,orpersonwithcontrollingpowerofthecompany,andnotbeingadirectorofthecompany,headoffice,subsidiary,jointcompany,subsidiaryatthesamelevel,especiallylistedcompany,whichtheauditcommitteemembermustbequalifiedaccordingtotheSecuritiesandExchangeAct,aswellasnotification,regulation,and/orruleofSET,whichdeterminequalificationandscopeofoperationofAuditCommittee.
19Annual Report 2012 C.P.L. Group Public Company Limited
TheremunerationforDirectorsandManagement
1.Theremuneration
Name Amount Type remuneration
1.Mr.ManochWongcharoensin 300,000 Director’sfee,Meetingfee
2.Mr.SuwatchaiWongcharoensin 380,000 Director’sfee,Meetingfee
3.Mr.LaiChiHsiang 385000 Director’sfee,Meetingfee
4.MrChenRuiTeng 200,000 Director’sfee,Meetingfee
5.Mr.KuoShihLun 380,000 Director’sfee,Meetingfee
6.Mr.KitichaiWongcharoensin 180,000 Director’sfee,Meetingfee
7.Mr.KamthonVathanalaoha 225,000 Director’sfee,Meetingfee
8.Mr.SukhoVoddhijoti 225,000 Director’sfee,Meetingfee
9.Mr.MongkonLaoworapong 225,000 Director’sfee,Meetingfee
Total 2,500,000
2.TheremunerationforDirectorsandManagement
Type remunerationDirectors and Management
Number BahtSalary 12 19,072,520Bonus 6,811,860Otherremuneration 1,310,150Total 12 27,194,530
Corporate Governance
Thecompanyrealizesandfocusesonefficient,transparent,andtraceablemanagementsystem,whichleadstoconfidenceinallrelevantdivisions,andresultsinsustainablebusinessgrowthunderethicalconductandcompliancewithrelevantlaw.Therefore,thecompanyhasdeterminedagoodcorporategovernancepolicytoraiseexistinglevelofoperationtobeaclearstandard,andspreadthepracticetothecompany’sstaffsinalllevel,whichcreatesgenuinecorporategovernanceculture.Thecompanyhasadopted2006GoodCorporateGovernanceforlistedcompanyasdeterminedbySET,whichcovers5sectionsasfollows;
Section 1 : The Rights of Shareholders
Thecompany realizesan focusesonbasic rightsofshareholdersas investors instockexchangeandasthecompany’sownerssuchastherighttobuy,sell,andtransfersecuritiesheldbyoneself,therightto receiveprofitsharing fromthecompany, the right to receivesufficientcompany’s information, rights inshareholdersmeeting,therighttocomment,therighttomakedecisioninthecompany’simportantmatterssuchasdividendallocation,appointmentorremovalofdirectors,appointmentofauditor,approvalofmajortransactionthataffectsdirectionofcompany’sbusinessoperation,amendmentofmemorandumofassociation,company’sregulation,etc.
20Annual Report 2012 C.P.L. Group Public Company Limited
Apart frombasicrightsabove, thecompanyhasapolicytooperate inthefollowingmattersthatpromotesandfacilitatestherightsofshareholders;
1. The company supports Board of Directors, executives, and relevant units, including auditors to
participate in shareholders meeting.
2. The company shall send meeting invitation together with meeting information according to various
agendas to shareholders at least 7 days prior to the meeting, or as determined by SEC and SET, which
shall be advertised in a newspaper at least 3 consecutive days prior to the meeting. Each agenda will
have comments from the board, and such information will be published on the company’s website to
allow time for shareholders to study such information prior to the meeting.
3. In case shareholders cannot personally attend the meeting, the company gives opportunity for
shareholders to authorize independent director or any person to attend the meeting on one’s behalf
using any type of proxy sent by the company with the meeting invitation.
4. Prior to the meeting, allow shareholders to comment, recommend, and question in advance prior to
the meeting.
5. In the meeting, allow shareholders to have equal right in making a comment, recommendation, or raising
question in various agenda independently before making a resolution in any agenda. In shareholders
meeting, there will be relevant director and executive attending the meeting to answer question in the
meeting, as well as important question and comment will be recorded in the minutes of meeting for
shareholders to verify.
6. In the meeting to appoint director, shareholders may vote for an appointment of one director at a time,
which shareholders may select representative who deemed suitable to become a director to look after
their interest, which would lead to variation and be genuine representative of shareholders.
7. After the meeting, the company will prepare minutes of meeting, which must present accurate and
complete information for shareholders to verify, and the minutes of meeting will be published in the
company’s website.
Section 2 : The Equitable Treatment of Shareholders
TheCompanyhasapolicyofcreatingequitabletreatmentofeveryshareholderinallgroups,especiallyminorityshareholdersbyallowingopportunityforminorityshareholderstoproposemeetingagendafortheannualgeneralmeetingofshareholders,andqualifiedcandidatesfordirectornominationbeforeshareholdersmeetingdate,aswellasaccompanyingdocumentforconsiderationand/orqualificationandconsentofthenominee,whichthecompanywillscreenforusefulagendaandselectqualifiedpersonthroughAuditCommitteebeforeproposingittotheboardofdirectorsforconsiderationanddeterminingmeetingagendafurther.
Ineachmeeting,thecompanywillallowallshareholderstohaveequalopportunity,whichbeforethemeetingstarts,theChairmanwillexplainvotingrightandvotingcountrequiredineachagenda,andalsoallowallshareholderstocomment,makeproposal,andquestionineachagendawithadequatetimegiven,whichtheChairmanwillproceedwiththemeetingaccordingtotheorderoftheagendas,aswellasthereisapolicynottoaddanyagendawithoutnotifyingshareholdersinadvancetogiveshareholdersanopportunitytostudyinformationaccompanyingtheagendabeforemakingdecision.
Thecompanyhasstrict regulationon inside informationutilizationtopreventexploitationof insideinformationforoneselforothersinillegalmanner(Abusiveself-dealing)toensurefairnesstoallstakeholders,
21Annual Report 2012 C.P.L. Group Public Company Limited
whichthecompanyhasdeterminedaguidelineforthecompany’sinsideinformationstorage,andaguidelineforpreventinginsideinformationexploitationforpersonalinterestaswrittendirectives,aswellasdeterminingthatdirectors,executives,andemployeesmustnotpurchasethecompany’ssecuritiesusingsecretand/orinsideinformationand/orenterintoanyotherlegaltransactionusingsecretand/orthecompany’sinsideinformationthat causes damage to the company either directly or indirectly. Furthermore, directors, executives, andemployeesareintheunitthatreceivesthecompany’sinsideinformationmustnotusesuchinformationbeforepublicdisclosure,andpersonrelatedtotheinsideinformationisprohibitedfrompersonallytradingthecompanysecurities,orbyhis/herspouseorminorchild,whetheritisadirectorindirecttrade(suchasnomineethroughpersonalfund)within1monthbeforedisclosingquarterlyandannualfinancialstatements,andatleast3daysafterthedisclosureofsuchinformation.
Thecompanygaveinformationtodirectorandexecutiverelatingtodutythatmustreportownershipofthecompany’ssecurities,anddeterminedpenaltyaccordingtotheSecuritiesandExchangeAct,B.E.2535,andaccordingtoSET’srequirement,andincasedirectororexecutivetradesthecompany’ssecurities,own,spouse,orminorchildownershipofthecompany’ssecuritiesmustbereportedaccordingtosection59oftheSecuritiesandExchangeAct,B.E.2535within3workingdaysfortheSECtomakepublicannouncementfurther. Section 3 : The Role of Stakeholders
Thecompanyfocusesontherightofstakeholdersineverygroup,whethertheyareinternalstakeholderssuchasshareholders,executives,andcompany’semployees,orexternalstakeholderssuchascreditors,customers,competitors,statesectors,society,andcommunity,etc.Thecompanyrealizesthatsupportandcommentfromstakeholdersinallgroupsareusefulfortheoperationandbusinessdevelopmentofthecompany.Therefore,thecompanywillcomplywiththelawandrelevantrequirementtoensurethatsuchrightsofstakeholdersarewellregulated.Therefore,thecompany’sbusinessoperationtakesintoaccounttherightsofallstakeholdersaccordingtothefollowingguideline;
shareholder : Treatshareholdersequally,maintaininterestofshareholders,andnotperformanyactionthatisinviolationordeprivationofshareholders’rights,aswellasfocusonmaximumsatisfactionforshareholdersbytakingintoaccountthecompany’ssustainablegrowthtoaddvalueandgiveappropriatereturncontinuously,includingadheretogoodcorporategovernance.
Employee : Treatemployeesequallyandfairlyintermsofopportunity,consideration,welfare,andcapacitydevelopment,whichallemployeesareregardedasvaluableresourceandimportantfactorindrivingsuccessfulorganization,andconcentrateoncreatingcultureandworkingatmosphere,promoteteamwork,promotedevelopmentofstaff’sknowledgeandabilityforprogressandsecuredoccupation,aswellasgiveconfidenceinqualityoflifeandworksafety,includingmaintainworkingenvironment.
Customer : Concentrateoncreatingsatisfactionandconfidenceforcustomers,careandberesponsibletowards customers, which customers must receive good and quality product/service atreasonableprice,andaccordingtothedeterminedstandard,aswellasstrictlycomplywithconditionandtermswithcustomers,seriouslyandregularkymaintaingoodandsustainablerelationshipwithcustomers,includingnotexploitingcustomer’sinformationfortheinterestofthecompanyandrelatedperson.
22Annual Report 2012 C.P.L. Group Public Company Limited
PartnerandCreditor
: Considerequalityandfairness,nottakingadvantage,andbehonestinbusinessoperation,maintainthe interestofpartnerandcreditorbystrictlycomplyingwiththe lawandruledetermined together,andbeethical inbusinessoperation,notdemanding,accepting,orgivinganydishonestinteresttopartner,aswellasstrictlycomplyingwithvariousconditions,andtreatcreditor fairly, includingrepayingdebtaccordingtoschedule, report topartnerandcreditorinadvanceifnotbeingabletocomplywithobligationandfindingsolutiontosuchproblemtogether.
Competitor : Treattradecompetitoraccordingtointernationalprincipleunderlegalframeworkrelatingtotradecompetitionpractice,andadheretogoodcompetitionruleequally.Notpreventingothersfromcompetinginthebusiness,notdestroyingreputationoftradecompetitorbyaccusing,mudslinging,andattackingcompetitorwithoutfactualground,orperformanyactionthatisunfairtocompetition.
Society,community,and environment
: Haveabusinessoperationpolicythatisresponsibletocommunity,society,andenvironmentintermsofsafety,qualityoflife,andnaturalresourcepreservation,promoteefficientenergyconsumption, realize quality of life of the community and society, aswell as take intoaccountbusinessoperationthataffectenvironment,operationanddecisionmaking,anyactionofthecompanymustbeensuredthatallproductandthecompany’sbusinessoperationareproperandconsistentwithvariousrulesandstandards,aswellaspromoteemployeetobeconsciousandresponsibletowardscommunity,society,andenvironment,includingcooperateinvariousactivateswiththecommunitythatthecompanyisoperatinginasappropriate.
Section 4 : Disclosure and Transparency
Thecompany’sboardofdirectorsfocusesoncorrect,complete,intime,andtransparentdisclosureofinformation,intermsoffinancialinformationandgeneralinformationaccordingtotheruleofSECandSET,aswellasotherimportantinformationthataffectsthepriceofthecompany’ssecurities,whichaffectdecisionmakingofinvestorsandthecompany’sstakeholders.Thecompanyhaspolicyofdisclosingthecompany’sinformationtoshareholders,investors,andpublicvariouschannelandinformationdistributionmediaofSETandonthecompany’swebsite.Thecompany’sboardofdirectorsisresponsibleforthecompany’financialstatementandfinancial informationappearingintheannualreport.Suchfinancialstatement ispreparedaccordingtogenerallyacceptedaccountingstandardinThailandbychoosingsuitableaccountingpolicy,whichisalwaysadheredto,aswellasthereiscompleteandsufficientdisclosureofinformationinthefinancialstatement,whichinthisregards,theAuditCommitteewillreviewqualityoffinancialreportandinternalcontrol,includingdisclosureofimportantinformationsufficientlyinthenotetothefinancialstatement,andreporttothecompanyboardofdirectors.
Investor Relations
ChiefFinancialOfficerisresponsibleforinvestorcommunications.TheCompanyhasbeendisclosingaccurate,complete,transparent,on-time,andfairinformationtothepublicasitiswellawareoftheimportanceofsuchinformationforinvestors’analysisanddecisionmakingbyaccommodatinginvestorsandanalysts,e.g.,CompanyvisitandmeetingwiththeManagementforinformationexchangesandvariousactivities.Forfurtherinformationonthedisclosureofcorporateinformation,pleasecontactsecretary@cpl.co.thandsingha@cpl.co.thortelephonenumber66270956338Fax6627096033
23Annual Report 2012 C.P.L. Group Public Company Limited
Section 5 : Responsibilities of the Board of Directors
1.BoardofDirectors’Structure
BoardofDirectorsconsistsofpersonswithknowledgeandexperience,whichhave important rolein policy making and organization’s overview, including important role in regulating, inspecting, evaluatingperformanceofthecompanytoensurethatitisaccordingtotheplan,aswellasoperatethecompany’sbusinessaccordingtothelaw,regulation,andshareholdersmeeting’sresolution,includingregulatingmanagement’sadministrationtobeaccordingtothetargetandguidelinedetermined,andleadtobestinterestofthecompanyandshareholders.
BoardofDirectors’structureconsistsofindependentdirectorsofmorethan1in3ofdirectorsinthewholeboard,whichwouldmaintainthevotingbalanceintheconsiderationofvariousmatters,andthereisanAudiCommittee,whichconsistsof3independentdirectors.
Currently,BoardofDirectorshas9directors,whichconsistsof6directorswhoaremajorshareholders’representatives,and3independentdirectorswhoarealsodirectorsintheAuditCommittee.Numberofthecompany’sindependentdirectorsisaccordingtotheruleofSEC,whichdeterminesthatonethirdoftotalnumberofdirectorsmustbeindependentdirectors.
Accordingtothecompany’sregulation, ineveryAnnualGeneralMeeting,at leastonethirdofthedirectorsmustretire.Ifnumberofdirectorscannotbedividedintothreeparts,numberofclosesttoonethirdshallapply.Directorthatmustresigninthefirstyearandthesecondyearafterthecompany’sregistration,adrawmustbemadetoselectwhowillberesigning.Forthesubsequentyears,directorsinthepositionthelongestshallretire.However,retireddirectormaybereelectedasdirector.
Furthermore,BoardofDirectorshasappointedsubcommittees,whichconsistsofExecutiveCommitteeandAuditCommitteetohavespecificfunctionandmakeproposaltoBoardofDirectorsforconsiderationoracknowledgement,whichsuchsubcommitteeshavetherightasdeterminedintheauthorityofeachsubcom-mittee.
BoardofDirectorshasappointedthecompany’ssecretarytoperformdutyandresponsibilityaccordingtoSecuritiesandExchangeAct.
ScopeofDutyandResponsibilityofBoardofDirectors;SeemoreinBoard of Director Structures
Intheyear2012DirectorattendedtheMeetingasfollow:
Name Board of Director Audit Commitee1.Mr.ManochWongcharoensin 5/5
2.Mr.SuwatchaiWongcharoensin 4/5
3.Mr.LaiChiHsiang 5/5
4.Mr.ChenRuiTeng* 1/5
5.Mr.KuoShihLun 5/5
6.Mr.KitichaiWongcharoensin 5/5
7.Mr.KamthonVathanalaoha 5/5 5/58.Mr.SukhoVoddhijoti 5/5 5/59.Mr.MongkonLaowarapong 5/5 5/5
*ResignonNovember9,2012
24Annual Report 2012 C.P.L. Group Public Company Limited
Inside Information Regulation
Thecompanyhasaruleandregulationthatdirectorandexecutive,employeeandstaffmustmaintainconfidentialityand/orinsideinformationofthecompany,notdisclosingorexploitingsecretand/orthecompany’sinsideinformationforowninterestorforothers’interestwhetherdirectlyorindirectly,andwhetherreceivinganythinginreturnornot,aswellasmustnottrade,transferoracceptthetransferofthecompany’ssecurityusingsecretand/orinsideinformationand/orenteringintoanytransactionusingsecretand/orinsideinformationofthecompany,whichcausesdamagetothecompanywhetherdirectlyorindirectly.Furthermore,directorandexecutive,employeeandstaffintheunitthatreceivesthecompany’sinsideinformationmustnotutilizesuchinformationpriortopublicdisclosure,andrelatedpersonisprohibitedfromtradingthecompany’ssecuritieswithin1monthpriortothedisclosureofquarterlyandannualfinancialstatement.Suchregulationshallincludespouseandminorchildofdirectorandexecutive,employeeandstaffaswell.
Furthermore,thecompanyinformeddirectorandexecutivetounderstandtheirdutyinreportingsecuritiesownershipofthemselves,spouse,andminorchild,aswellasthechangeinownershipofsuchsecuritiestoSECaccordingtosection59,andpenaltyaccordingtosection275oftheSecuritiesandExchangeAct,B.E.2535.
Thecompanydetermineddisciplinaryactionforthosewhoexploitsordisclosesthecompany’sinsideinformationcausingdamageto thecompanybyconsiderpunishmentasappropriate to thecasesuchasverbalwarning,writtenwarning,probation,aswellasterminationofemploymentduetodismissal,discharge,orretirementasthecasemaybe,etc.
Internal Control
TheBoardofDirectorssatisfiestheinternalcontrolsystemthatcreatedreasonablecredibilityofthefinancialstatementofthecompanyat31December2012
TheboardofdirectorandAuditCommitteehasevaluatedtheinternalcontrolsystemoftheCompany’asfollow:
1.TheOrganizationControlandenvironmentMeasure
2.RiskManagementMeasure
3.ManagementControlActivities
4.Informationandcommunicationsystems
5.Themonitoringsystem
Theboardofdirectorsalsodeemedthattheinternalcontrolsystemsaresufficient.
25Annual Report 2012 C.P.L. Group Public Company Limited
Transactions between Company and Affiliates
TransactionsbetweenCompanyandAffiliates
Therewastheopenreportoftheinter-transactionitem24notestofinancialstatementsalready.
IndependentDirectorCommended
Therelationtransactionbetweencompanyandaffiliateswereunderregularizationtradeinmarketprice
comparedwiththeothersandhavethesignatureapproveforsellingandpurchasingwhichregularizationto
conduct.
26Annual Report 2012 C.P.L. Group Public Company Limited
Management Discussion and Analysis
CPLGroupPublicCo.,Ltd.isafullyintegratedtannery,fromthepurchaseofrawhidestopickling,
wetblues,crustinguntilfinalfinishingascowfinishedleatherreadytobecutintoshoes&leatherproducts.
Thebeamhouseandtannerywascompletedin1989dulyoperatedandmanagedbyfoundingpersonnelwith
experienceofmorethan40years.CPLhascontinuouslyexpandedsincethen.In1994CPLwasregistered
inSETwithregisteredcapitalof240millionbaht.Subsequently,theAnnualExtraordinaryShareholdersMeeting
for2005hadunanimouslyresolvedtoincreaseditsregisteredcapitalfrom24m.sharesto26.4millionshares,
eachof10baht,andtotalvaluingto264millionbaht.CPLhasregisteredthisincreaseincapitalwithMinistry
ofCommerceon1June2005.
ThecompanyhadjointlyinvestedwithitsalliestoestablishanewcompanynamedCPLInternational
Co.,Ltd.inHongKongandinvestedintheconstructionofatanneryinGuangZhou.SubsequentlyCPL
InternationalCo.,Ltd.hasincreaseditsregisteredcapitalfrom7millionUSDto8millionUSDoftotalregistered
capital.Nowduringrestructurethecompany.
Analysis from Operation
Last year, there was an important factor, i.e. beef price became very high causing lower beef
consumption,hencelowercattleslaughtering,whichinturncausingcowhide,thecompany’srawmaterial,to
beexpensive.Forsuchreason,shoesmanufacturersturnedtocheaperrawmaterial,i.e.cowsplitinsteadof
fullgrain,whichhasbetterqualityandmoreexpensive,tolowerproductcostforsurvival,whichaffectsthe
companydirectlybycausingtotalaverageincomeofthecompanytobelowerduetohighersalesproportion
ofcowsplit,whichischeaper.
For2012,thecompanyhasanetprofitofTHB42.7million,whichisTHB39millionlessthanthe
previousyear,or48%reductionfromlastyearduetoariseincostofcowhide,whichisanimportantraw
material,by4%comparedtothepreviousyear,aswellaschemicalcost,laborcost,andproductionexpense
becamehigher,whichaffectsgrossprofittobe3%less.Thisimportant information, i.e.thecompanyhas
incomefromsalestotalofTHB1.737billion,whichisclosetothepreviousyear,buttotalsalescostisTHB
1.582billion,whichisTHB43millionmorethanthepreviousyear,or3.7%higherthanthepreviousyearleading
togrossprofitofTHB155million,orTHB66millionlessthanthepreviousyear.Salesandmanagement
expensesdecreasedslightlyduetolesscommission,butalsoclosetothepreviousyear.Otherincomesare
taxrefundforMor.19ofaboutTHB10million,reversetransferanddoubtfuldebtofTHB12.5million.Furthermore,
therewaslossduetodevaluationoflongterminvestmentofTHB7million.In2012,grossprofitpershare
wasTHB1.62pershare,whichwasTHB1.48persharelessthanthepreviousyear(itwasTHB3.10per
shareinthepreviousyear)
27Annual Report 2012 C.P.L. Group Public Company Limited
Analysisofthecompanyfinancialstatus
ThecompanyhasTHB70millionmorecashandcashequivalent,whichmostlycomesfromdistributing
inventory,whichwasalargequantityattheendofthepreviousyearcausingthecompanytohaveamuch
betterliquidity,whichhavingcurrentratioof6.58times,whichis1.46timesbetterthanthepreviousyear.In
termsofaccountreceivable,outstandingbalanceincreasedslightly,andaccountreceivableturnoverwasslightly
lowerfrom18daysto23days,butstillsimilartothepreviousyear.Thecompanyorganizesmeetingtoanalyze
debtorperiodonamonthlybasis.Thereforeoutstandingbalancewasabletobecontrolled.Fortheinventory
andratematerialsthatarerawcowhide,chemicals,goodsinproduction,finishedgoods,andconsumables
wereTHB136millionlessthanthepreviousyear.Asthecompanydeemsthatrawcowhidebecamemore
expensive,thisyear,inventoryisreservedmoreandreleasedthisyeartobearlowercost,otherwisethecompany
wouldhaveevenworseperformance.
Liabilities and Investing Activities
Shareholders’equity,thecompanyincreasedauthorizedcapitalfrom24millionsharesatTHB10per
shareto26.4millionsharesatTHB10pershare,whichistotaledtoTHB264million.Capitalincreasewas
registeredwithMinistryofCommerceonJune1,2005,andfor2012,thecompanyhadaperformancewith
netprofitofTHB42.7million,andearningspershareofTHB1.62,retainedearningsforshareholders’equity
ofTHB956.53million.Lastyear,thecompanypaiddividendfor2011inQ2of2012atTHB2.00pershare,
whichistotaledtoTHB52.80million.BoardofDirectors’meetingnumber1/2013hadaunanimousresolution
topaydividendfor2012atTHB1.75pershare,whichshallbepaidonMay20,2013.
28Annual Report 2012 C.P.L. Group Public Company Limited
Independent Auditor’s Report
TotheShareholdersandBoardofDirectorsofC.P.L.GROUPPUBLICCOMPANYLIMITED
IhaveauditedtheaccompanyingfinancialstatementsofC.P.L.GROUPPUBLICCOMPANYLIMITED,whichcomprisethestatementoffinancialpositionasofDecember31,2012,andthestatementofcomprehensiveincome,thestatementofchangesinequityandthestatementofcashflowsfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements inaccordancewithFinancialReportingStandards,andforsuchinternalcontrolasmanagementdeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.
Auditor’s Responsibility
Myresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonmyaudit.IconductedmyauditinaccordancewithStandardsonAuditing.ThosestandardsrequirethatIcomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.
Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’spreparationandfairpresentationofthefinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.
IbelievethattheauditevidenceIhaveobtainedissufficientandappropriatetoprovideabasisformyauditopinion.
Opinion
Inmyopinion,thefinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionofC.P.L.GROUPPUBLICCOMPANYLIMITEDasofDecember31,2012,andtheirfinancialperformanceandcashflowsfortheyearthenendedinaccordancewithFinancialReportingStandards.
Other Matter
ThefinancialstatementsofC.P.L.GROUPPUBLICCOMPANYLIMITEDfortheyearendedDecember31,2011,wereauditedbyanotherauditorwhoexpressedanunmodifiedopiniononthosestatementsonFebruary20,2012.
S.K.ACCOUNTANTSERVICESCOMPANYLIMITED.
(WanrayaPuttasatiean) AuthorizedAuditorNo.4387
Bangkok,February22,2013
29Annual Report 2012 C.P.L. Group Public Company Limited
C.P.L.GROUPPUBLICCOMPANYLIMITED
Asof
December31,2012
Asof
December31,2011
Asof
January1,2011Notes
Baht Baht Baht
ASSETS
CURRENTASSETS
CashandCashEquivalents 6 106,973,259.18 36,523,762.58 58,240,574.52
TemporaryInvestments 9 30,000,000.00 16,000,000.00 -
TradeandOtherReceivables-Net 7 110,781,364.40 89,303,759.96 175,837,897.35
Inventories-Net 8 610,441,829.12 746,876,185.71 584,889,601.57
OtherCurrentAssets 149,258.62 125,245.40 176,095.40
TOTAL CURRENT ASSETS 858,345,711.32 888,828,953.65 819,144,168.84
NON-CURRENTASSETS
Long-TermInvestments-Net 9 79,319,829.23 65,865,509.61 82,781,260.81
InvestmentProperty-Net 10 39,450,000.00 39,450,000.00 39,450,000.00
Property,PlantandEquipment-Net 11 141,398,767.07 155,609,382.18 173,797,664.88
OtherIntangibleAssets-Net 12 8,244,319.91 9,536,875.18 -
OtherNon-CurrentAssets 12,322.74 14,822.74 8,089,616.33
TOTAL NON - CURRENT ASSETS 268,425,238.95 270,476,589.71 304,118,542.02
TOTAL ASSETS 1,126,770,950.27 1,159,305,543.36 1,123,262,710.86
Notestothefinancialstatementsareanintegralpartoftheabovefinancialstatements.
Statements of Financial Position
30Annual Report 2012 C.P.L. Group Public Company Limited
Asof
December31,2012
Asof
December31,2011
Asof
January1,2011Notes
Baht Baht Baht
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENTLIABILITIES
Short-TermBorrowingsfromFinancial
Institutions 14 - 28,135,866.25 47,600,880.03
TradeandOtherPayables 15 139,627,142.32 129,946,672.53 125,862,391.85
CurrentIncomeTaxPayable 6,900,799.23 13,447,936.91 -
TOTAL CURRENT LIABILITIES 146,527,941.55 171,530,475.69 173,463,271.88
NONCURRENTLIABILITIES
EmployeeBenefitObligation 16 23,711,542.00 21,147,958.00 -
TOTAL NON CURRENT LIABILITIES 23,711,542.00 21,147,958.00 -
TOTAL LIABILITIES 170,239,483.55 192,678,433.69 173,463,271.88
SHAREHOLDERS’EQUITY
ShareCapital 17
AuthorizedShareCapital
26,399,995OrdinaryShares@10.00Baht 263,999,950.00 263,999,950.00 263,999,950.00
IssuedandPaidShareCapital
26,399,995OrdinaryShares@10.00Baht 263,999,950.00 263,999,950.00 263,999,950.00
SharePremiumAccount-OrdinaryShares 198,000,000.00 198,000,000.00 198,000,000.00
RetainedEarnings
Appropriated
LegalReserve 28,940,744.21 28,940,744.21 28,940,744.21
Unappropriated 475,686,415.46 458,858,744.77
TOTAL SHAREHOLDERS’ EQUITY 956,531,466.72 966,627,109.67 949,799,438.98
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY 1,126,770,950.27 1,159,305,543.36 1,123,262,710.86
Notestothefinancialstatementsareanintegralpartoftheabovefinancialstatements.
C.P.L.GROUPPUBLICCOMPANYLIMITED
Statements of Financial Position
31Annual Report 2012 C.P.L. Group Public Company Limited
Notes 2012 2011
Baht Baht
RevenuefromSales 1,736,968,771.77 1,759,932,702.26
CostofSales (1,581,652,002.45) (1,539,243,531.73)
Gross Profit 155,316,769.32 220,689,170.53
GainfromExchangeRate 15,328,115.62 10,584,459.84
OtherIncome 16,553,352.16 7,257,060.01
SellingExpense (42,674,380.35) (44,428,472.60)
AdministrativeExpense (70,628,127.68) (61,199,344.56)
DoubtfulDebt (14,658,751.65) (7,046,865.22)
ReversalforDoubtfulDebt 12,575,810.72 -
LossfromImpairmentofLong-TermInvestment (7,164,180.38) (915,751.20)
FinancialCosts (3,924,892.39) (3,885,999.33)
Profit Before Income Tax Expense 60,723,715.37 121,054,257.47
TaxExpense 20 (18,019,368.32) (39,230,258.53)
PROFIT FOR THE YEAR 42,704,347.05 81,823,998.94
OTHER COMPREHENSIVE INCOME (EXPENSE) FOR THE YEAR - -
TOTAL COMPREHENSIVE INCOME (EXPENSE) FOR THE YEAR 42,704,347.05 81,823,998.94
BASICEARNINGSPERSHARE 1.62 3.10
Notestothefinancialstatementsareanintegralpartoftheabovefinancialstatements.
C.P.L.GROUPPUBLICCOMPANYLIMITEDFortheyearsendedDecember31,2012and2011
Statements of Comprehensive Income
32Annual Report 2012 C.P.L. Group Public Company Limited
Issued andPaid-up
ShareCapital
SharePremiumAccount
OrdinaryShares
RetainedEarnings
TotalAppropriatedLegalReserve Unappropriated
Baht Baht Baht Baht Baht
Balance as of December 31, 2010 263,999,950.00 198,000,000.00 28,940,744.21 458,858,744.77 949,799,438.98
AdjustforEmployeeBenefitObligation - - - (18,796,337.00) (18,796,337.00)
PaidDividends 18 - - - (46,199,991.25) (46,199,991.25)
TotalComprehensiveIncome(Expense)
fortheYear - - - 81,823,998.94 81,823,998.94
Balance as of December 31, 2011 263,999,950.00 198,000,000.00 28,940,744.21 475,686,415.46 966,627,109.67
PaidDividends 18 - - - (52,799,990.00) (52,799,990.00)
TotalComprehensiveIncome(Expense)
fortheYear - - - 42,704,347.05 42,704,347.05
Balance as of December 31, 2012 263,999,950.00 198,000,000.00 28,940,744.21 465,590,772.51 956,531,466.72
Notestothefinancialstatementsareanintegralpartoftheabovefinancialstatements.
C.P.L.GROUPPUBLICCOMPANYLIMITEDFortheyearsendedDecember31,2012and2011
Statements of Changes in Shareholders’ Equity
33Annual Report 2012 C.P.L. Group Public Company Limited
Notes 2012 2011
Baht BahtCASHFLOWFROMOPERATINGACTIVITIES
ProfitbeforeIncomeTax 60,723,715.37 121,054,257.47
AdjustmentstoProfitbeforeIncomeTaxforCashReceipt(Paid)fromOperation
Depreciation 21,574,048.26 25,562,211.03
AmortizationofOtherIntangibleAsset 1,472,555.27 7,740.82
PrepaidExpenseAmortization 3,489,728.28 1,038,040.20
DoubtfulDebt 14,658,751.65 7,046,865.22
ReversalforDoubtfulDebt (12,575,810.72) -
EstimationofDebtReductionfromReturnedGoodsandDis-countPayment(Reversal)
(2,839,549.20) 1,102,355.19
EstimationCostfromReturnedGoods 2,405,256.01 (85,537.69)
LossfromDeclininginValueofInventories(Reversal) 4,805,517.61 (5,231,807.11)
(Gain)LossfromUnrealizedExchangeRate (168,576.83) 201,476.54
LossfromSaleofProperty,PlantandEquipment (126,165.23) (370,771.32)
LossfromWriteOffofProperty,PlantandEquipment 35,375.34 -
LossfromImpairmentofLong-TermInvestment 7,164,180.38 915,751.20
EmployeeBenefitObligation 2,563,584.00 2,351,621.00
InterestIncome (2,409,234.11) (2,466,468.87)
InterestExpenses 1,220,438.76 1,254,265.82
ProfitfromOperatingbeforeChangeinOperatingAssetsandLiabilites
101,993,814.84 152,379,999.50
(Increase)DecreaseinOperatingAssets
TradeandOtherReceivables (32,044,941.12) 64,549,902.74
Inventories 129,223,582.97 (156,669,239.34)
OtherCurrentAssets (24,013.22) 50,850.00
OtherNon-CurrentAssets 2,500.00 (10,822.41)
Increase(Decrease)inOperatingLiabilities
TradeandOtherPayables 10,479,540.71 15,788,867.98
CashReceived(Paid)fromOperatingActivities 209,630,484.18 76,089,558.47
CashReceivedfromInterestIncome 205,250.59 268,928.04
CashReceivedRefundablefromTaxExpense 7,407,394.65 -
CashPaidTaxExpense (24,566,506.00) (25,782,321.62)
Net Cash Provided from (Used in) Operating Activities 192,676,623.42 50,576,164.89
Statements of Cash Flows
C.P.L.GROUPPUBLICCOMPANYLIMITEDFortheyearsendedDecember31,2012and2011
34Annual Report 2012 C.P.L. Group Public Company Limited
Notes 2012 2011
Baht BahtCASH FLOW FROM INVESTING ACTIVITIES
CashPaidforTemporaryInvestments (30,000,000.00) -
CashPaidforInvestmentinDebtInstrumentHeldtoMaturity (16,000,000.00) -
CashReceivedfromSaleofInvestmentinDebtInstrumentHeldtoMaturity
16,000,000.00 -
CashPaidforInvestmentinGeneralInvestment (4,618,500.00) -
CashPaidforPurchasesofProperty,PlantandEquipment (6,549,999.21) (6,344,815.89)
CashReceivedfromSaleofProperty,PlantandEquipment 126,168.23 469,158.88
CashReceivedinInterestIncomefromInvestmentinDebtInstrumentHeldtoMaturity
2,066,120.52 2,197,540.83
CashPaidforPurchasesofOtherIntangibleAsset (180,000.00) (1,459,000.00)
Net Cash Provided from (Used in) Investing Activities (39,156,210.46) (5,137,116.18)
CASH FLOW FROM FINANCING ACTIVITIES
CashPaidforAssetsPayables (1,127,500.00) -
CashReceivedfromShort-TermBorrowingsfromFinancialInstitutions
641,069,196.30 804,334,906.64
CashPaidinShort-TermBorrowingsfromFinancialInstitutions (669,205,062.55) (824,321,173.67)
PaidDividends (52,799,990.00) (46,199,991.25)
CashPaidinInterestExpense (1,241,579.66) (1,286,912.28)
Net Cash Provided from (Used in) Financing Activities (83,304,935.91) (67,473,170.56)
EffectfromChangesinExchangeRateofCashandCashEquivalents 234,019.55 317,309.91
NET CASH AND CASH EQUIVALENTS INCREASE (DECREASE) 70,449,496.60 (21,716,811.94)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD 6 36,523,762.58 58,240,574.52
CASH AND CASH EQUIVALENTS AT ENDING OF THE PERIOD 6 106,973,259.18 36,523,762.58
Notestothefinancialstatementsareanintegralpartoftheabovefinancialstatements.
Statements of Cash Flows
C.P.L.GROUPPUBLICCOMPANYLIMITEDFortheyearsendedDecember31,2012and2011
35Annual Report 2012 C.P.L. Group Public Company Limited
Notes to Financial Statements C.P.L.GROUPPUBLICCOMPANYLIMITED
December31,2012and2011
1. General Information
TheCompanywasregisteredonJanuary27,1994,haveregistrationnumber0107537000289with
itsregisteredofficesituatedat700Moo6,SukhumvitRd,BangPooMai,MuangSamutprakran,Thailand.
Itsmainbusinessactivityisproducingandsellingtannedleather.
2. Basis of Preparation
2.1 The financial statementshavebeenprepared inaccordancewithFinancialReportingStandardsof
ThailandincludingrelatedinterpretationsandguidelinespromulgatedbytheFederationofAccounting
Professions, applicable rules and regulations of the Securities and Exchange Commission and The
Stock Exchange of Thailand.
2.2 ThefinancialstatementswerepresentedincompliancewiththenotificationofDepartmentofBusiness
Developmentregarding“BriefparticularsmustbecontainedinfinancialstatementsB.E.2554”dated
onSeptember28,2011,notifiedaccordingtoAccountingActB.E.2543.
2.3 Inordertopreparethefinancialstatementstocomplywithfinancialreportingstandards,theCompany’s
management had to make some estimates and suppositions which may have an effect on the amount
shown for revenues, expenses, assets and liabilities and also on the disclosures concerning assets
and contingent liabilities, therefore the actual result may differ from the estimated amount.
2.4 Fortheconvenienceoftheuser,anEnglishtranslationofthefinancialstatementshasbeenprepared
fromthestatutoryfinancialstatementsthatareissuedinThailanguage.
3. New Financial Reporting Standard
NewaccountingstandardwhichiseffectiveforaccountingperiodbeginningonorafterJanuary
1,2012,isasfollow:
TAS20 AccountingforGovernmentGrantsandDisclosureof
GovernmentAssistance
Theaboveaccountingstandardhasnoimpactonthesefinancialstatements.
4. New Financial Reporting Standards Not Yet Effective
New accounting standards, financial reporting standards, interpretations accounting standards,
interpretationsfinancialreportingstandardsandaccountingguidance,whichareeffectiveforaccounting
periodsbeginningonorafterJanuary1,2013and2014,thattheCompanyhasnotadopted,areas
follow:
36Annual Report 2012 C.P.L. Group Public Company Limited
EffectiveonorafterJanuary1,2013
AccountingGuidance TransferofFinancialAsset
TAS12 IncomeTaxes
TAS20(revised2009) AccountingforGovernmentGrantsandDisclosureofGovernmentAssistance
TAS21(revised2009) TheEffectsofChangesinForeignExchangeRates
TFRS8 OperatingSegments
TSIC10 GovernmentAssistance-NoSpecificRelationtoOperationActivities
TSIC21 IncomeTaxes-RecoveryofRevaluedNon-DepreciableAssets
TSIC25 IncomeTaxes-ChangesinTaxStatusofanEnterpriseoritsShareholder
EffectiveonorafterJanuary1,2014
TFRIC4 DeterminingWhetheranArrangementsContainsaLease
TFRIC12 ServiceConcessionArrangement
TFRIC13 CustomerLoyaltyPrograms
TSIC29 Disclousure-ServiceConcessionArrangement
ThemanagementoftheCompanybelievesthatabovefinancialreportingstandardswillnothave
anyimpactonthefinancialstatementswhentheyareapplied.Except,TAS12“IncomeTaxes”requires
theCompanytospecifythetemporarydifferenceoccurringfromthedifferenceinthevalueofassets
andliabilitiesbetweentheaccountingcriteriaandtaxfortheacknowledgementonthetaximpactwhich
isthedeferredtaxassetsorliabilitiesfollowingthespecifiedcriteria.Currently,themanagementofthe
Companyisassessingtheimpactsonthefinancialstatementsfortheperiodwhentheaccountingstandard
isapplied.
5. SignificantAccountingPolicy
5.1 MeasurementsbasesusedinthePreparationofFinancialStatements
Measurementbasesusedinthepreparationoffinancialstatementsarehistoricalcostmeasurement
basis and combination of variety measurement bases used. Some assets and liabilities that use other
measurement bases have been disclosed the measurement bases used in the particular accounting
policies.
5.2 ForeignCurrencies
ItemsdenominatedinforeigncurrenciesarerecordedinBahtattheprevailingexchangerate
when the transactions occur, and their balances of assets and liabilities at the ended of period are
convertedintoBahtbyclosingrateasatendedperiod.Profitorlossarisingfromsuchconversionis
shown as revenues or expense in the statement of comprehensive income for that period.
5.3 FinancialInstruments
Financialassetswereshowninthestatementsoffinancialpositioncomposedofcashandcash
equivalents,investments,tradeandotherreceivables.Financialliabilitieswereshowninthestatement
of financialpositioncomposedofshort-termborrowingsfrom financial institutions,tradeandother
payables. The particular accounting policy of each items are disclosed in each individual section. The
Companyhasmadetheforwardforeigncurrenciescontractsoastohedgeagainstriskfromfluctuation
of exchange rates. The forward foreign currencies contract will determine exchange rates in the future
that foreign currencies asset and liability will receive or has to be repayable. The forward foreign currencies
37Annual Report 2012 C.P.L. Group Public Company Limited
contractasofperiodendwillbecomputedbyfairvalueanddisclosedinthenotetothe financial
statements. In addition, realized gain (loss) incurred from the forward foreign exchange contract will
be recorded in the statements of comprehensive income.
5.4 Cash and Cash Equivalents
Cash and cash equivalents include bank deposit in type of current accounts, saving accounts
and3-monthsfixedaccountswithoutguaranteeobligation.
5.5 Trade and Other Receivables
Trade and other receivables are stated at the net realizable value.
5.6 Inventories
Inventories are valued at cost price or net realizable value, whichever is lower which the cost
price calculates as follows:
- RawmaterialsarevaluedatcostpriceunderFIFOmethod.
- Work-in-processisvaluedatactualcost.
- Finishedgoodsarerecordedincostpriceinaccordancewithspecificmethod.
- SparepartsarevaluedatcostpriceunderFIFOmethod.
5.7 TemporaryandLong-TermInvestments
- Investmentsinnon-marketablesecuritieswhichareheldasageneralinvestmentareshown
at cost price and also adjusted the allowance for impairment. The Company recognized
the change of the value of general investments in the statements of comprehensive income
when there is a disposal of the investment or the impairment of investment.
- InvestmentinunittrustinthemarketablesecuritywhichtheCompanyholdsasavailablefor
salesecurityisreflectedbyfairvalue.Thefairvalueofunittrustisannouncementpricefrom
openfundasofthedateinthestatementoffinancialposition.TheCompanyrecognizedthe
change of the value as separate transaction in the shareholders equity in the statement of
financialpositionandwouldberecordedinthestatementofcomprehensiveincomewhen
there is a disposal of the investment or impairment of investment.
- Heldtomaturitydebtinstrumentstatedatamortizedcost.
5.8 Investment Property
TheCompanyinvestmentpropertyistheirownedlandwithoutspecificpurposeofuseinthe
future and/or exploiting for rental income or appreciation of the asset. The Company measures the
investment property by the cost value, deducted the accumulated depreciation and the allowance for
impairment, (if any).
5.9 Property, Plant and Equipment
Land are recorded at cost on the transaction date. Plant and equipment are recorded at cost
onthetransactiondatelessaccumulateddepreciation.Depreciationiscalculatedonastraight-line
basis over the approximate useful life as follows:
38Annual Report 2012 C.P.L. Group Public Company Limited
-BuildingsandConstructions 20 years
-BuildingsImprovement 5 years
-MachinesandEquipments 10 years
-FixturesandofficeEquipments 5,10 years
-Vehicles 5 years
-WasteWaterStorage 10 years
5.10 Intangible Asset and Amortization
Computer software
Acquired computer software license are capitalized on the basis of the costs incurred to acquire
andbringtousethespecificsoftware.Thesecostsareamortizedovertheirestimatedusefullives5
years.
5.11 Impairment
The carrying amounts of assets are assessed at the end of each reporting period to determine
whether there is any indication of impairment. If any such indication exists, the assets’ recoverable
amountsareestimatedof assetor its cash-generatingunit towhich theasset is included in the
recognition of an impairment loss when the recoverable amount less than the carrying amount of the
asset or its cash generating unit.
Impairmentlossisrecognizedasexpensesinprofitorlossimmediately.
Calculation of Recoverable Amount
- Therecoverableamountisthehigheroftheasset’sfairvaluelesscosttosellofassetorthe
cash-generatingunitoritsvalueinuse.
- Inassessingvalueinuseofanassetbyestimatingthepresentvalueoffuturecashflowsgenerated
bytheasset,discountedusingapre-taxdiscountratewhichreflectscurrentmarketassessments
ofthetimevalueofmoneyandtherisksspecifictotheasset.
- Theassetthatdoesnotgeneratecashinflowslargelyindependentofthosefromotherassets,
therecoverableamountisdeterminedforthecash-generatingunittowhichtheassetbelongs.
Reversals of Impairment Loss
- Thelossonimpairmentofassetsrecognizedinthepriorperiodwillbereversediftheestimation
for indicated net realizable value changes since the last impairment loss was recognized. The
carrying amount of the asset not exceed just to be the carrying amount that would have been
(net of depreciation or amortization), if no impairment loss had been recognized.
- Reversalsofimpairmentlosswillberecognizedasincomeinprofitorlossimmediately.
5.12 Trade and Other Payables
Trade and other payables were shown in cost value.
5.13 EmployeesBenefit
Short-TermEmployeeBenefits
The Company is recognized salary, wage, bonus, social security fund and provident fund are
expenses on date when the transactions occur.
39Annual Report 2012 C.P.L. Group Public Company Limited
Long-TermEmployeeBenefits
TheCompanyprovidesforpostemploymentbenefitstoorretirementindemnityemployeesunder
the labor laws applicable in Thailand. The Company has recorded the liabilities in respect of employee
benefitswhicharethepresentvalueofthedefinedbenefitobligationscalculatedbyanindependentactuary
inaccordancewiththeactuarialtechnique,anddiscountedbenefitbytheprojectedunitcreditmethod.
Theestimatedfuturecashflowsshallreflectemployeesalaries,turnoverrate,mortalityrate,lengthof
serviceandother.TheCompanyrecordedprovisionforemployeebenefitisnon-currentliabilities.The
costsassociatedwithprovidingthesebenefitsarechargedtothestatementsofcomprehensiveincome
soastospreadthecostovertheemploymentperiodduringwhichtheentitlementtobenefitsisearned.
5.14 Provisions
Provisions are recognized when the Company has a present legal or constructive obligation as a
resultofpastevents,itisprobablethatanoutflowofresourceswillberequiredtosettletheobligation,
andareliableestimateoftheamountcanbemade.WheretheCompanyexpectsaprovisiontobe
reimbursed, the reimbursement is recognized as a separate asset but only when the reimbursement
is virtually certain.
5.15 Recognition of Revenues
- Revenuefromsalesisrecognizedwhengoodsaredeliveredtocustomer.
- Revenueofrentalisrecognizedinaccordancewiththeperiodofrentthroughtheperiodterm
of the contract of rent.
- Revenueofinterestincomeisrecognizedinaccordancewiththeperiodthatinvestmentorloan.
- Revenuefromtaxreturnisrecordedtootherincomewhentaxreturnsarereceived.
- Dividendrevenueisrecognizedwhentherighttoreceivedividendarises.
5.16 Recognition of Expenses
- Expensesarerecognizedonaccrualbasis.
5.17 Income Tax
Incometaxexpensesarerecognizedasexpensesinprofitorlossasincometaxtobepaid,
using tax rates enacted at the end of each reporting period
5.18 Earnings per Share
Calculationofearningspershare,calculatedbydividingnetprofitwiththeweightedaverage
numberofissuedandpaid-upshares.TheCompanydidnotcalculatethefully-dilutedearningsper
share since it has no equivalent ordinary shares equivalents.
5.19 SignificantAccountingJudgmentsandEstimates
In order toprepare the financial statements to complywith financial reporting standards, the
Company’s management had to make some judgment and estimates which may have an effect on
theamountshowninfinancialstatementsandnotestofinancialstatements,thereforetheactualresult
maydifferfromtheestimatedamount.Significantestimatesandprovisionsareasfollows:
Lease
40Annual Report 2012 C.P.L. Group Public Company Limited
Indeterminingwhethera lease is tobeclassifiedasanoperating leaseor finance lease, the
management isrequiredtouse judgmentregardingwhethersignificantriskandrewardsofownership
of the leased asset have been transferred, taking into consideration terms and conditions of the
arrangement.
AllowanceforDoubtfulAccounts–TradeandOtherReceivables
Indetermininganallowancefordoubtfulaccounts-tradeandotherreceivables,themanagement
needs to make judgment and estimates based upon, among other things, past collection history, aging
profileofoutstandingdebtsandtheprevailingeconomiccondition.
AllowanceofDebtReductionfromReturnGoodsandDiscountPayment
In determining an allowance of debt reduction from return goods and discount payment, the
management makes judgment in estimation an allowance of debt reduction from return goods and
discount payment from the Company merchandise is not complied with the attribute the customers
definedwherebytheCompanycomputedfromthedebtreductionrateandmerchandisereturnedreceipt
over sales by average multiplication with merchandise sales incurred every three months.
ReductionofInventoriestobecomeNetRealizableValue
In estimating the reduction of inventories to become net realizable value, the management uses
the discretion in estimating the net realizable value of inventories. The sum of money expected to
receive from inventories is considered from the change in sale price or cost directly related to the
events occurring after of report period.
EstimationofReturnedGoods
In determining an estimation of returned goods, the management makes judgment in estimation
of returned goods from the Company merchandise is not complied with the attribute the customers
definedwhereby theCompany is estimation fromaverage cost of goods sold ratemultipliedwith
estimation of debt reduction allowance incurred from merchandise returned.
AllowanceofImpairmentofEquityInvestment
The Company treats investment in debt instrument held to maturity and other investments
asimpairedwhentherehasbeenasignificantorprolongeddeclineinthefairvaluebelowtheircost
orwhereotherobjectiveevidenceofimpairmentexists.Thedeterminationofwhatis“significant”or
“prolonged”requiresjudgmentofthemanagement.
Property,PlantandEquipmentandDepreciation
In determining depreciation of plant and equipment, the management is required to make
estimates of the useful lives and residual values of the Company’s plant and equipment and to review
estimate useful lives and residual values when there are any changes. In addition, the management
is required to review property, plant and equipment for impairment on a periodical basis and record
impairment losses in the period when it is determined that their recoverable amount is lower than the
carrying amount. This requires judgments regarding forecast of future revenues and expenses relating
to the assets subject to the review.
41Annual Report 2012 C.P.L. Group Public Company Limited
IntangibleAssetsandAmortization
Intangible assets are systematically amortized over their estimated useful lives, and are subject
to impairment if there is an indication they may be impaired.
Post-EmploymentBenefits
Theobligationunderdefinedbenefitplanisdeterminedbasedonactuarialvaluations.Inherent
within these calculations are assumptions as to discount rates, future salary increases, mortality rates
and other demographic factors. In determining the appropriate discount rate, an independent actuary
selectsaninterestratethatreflectsthecurrenteconomicsituation.Themortalityrateisbasedonpublicly
availablemortalitytablesforthecountry.However,actualpost-retirementcostsmayultimatelydiffer
from these estimates.
6. CashandCashEquivalents
Consistof:
Asof Asof
December31,2012 December31,2011
Baht Baht
Cash 274,035.37 734,425.76
BankDeposit-CurrentDeposit 15,083,367.72 17,182,707.96
BankDeposit-SavingDeposit 91,615,856.09 18,606,628.86
Total 106,973,259.18 36,523,762.58
7. TradeandOtherReceivables-Net
Consistof:
Asof Asof
December31,2012 December31,2011
Baht Baht
TradeReceivables-Domestic 29,038,171.06 60,663,171.04
TradeReceivables-Oversea 73,304,338.92 46,762,022.62
NotesReceivables 25,274,364.36 7,251,030.53
LessAllowanceforDoubtfulDebt (21,978,403.34) (29,904,335.59)
Less Estimation of Debt Reduction from Returned
GoodsandDiscountPayment (3,079,049.82) (5,918,599.02)
TradeandNotesReceivables-Net 102,559,421.18 78,853,289.58
OtherReceivable 8,221,943.22 10,450,470.38
Total 110,781,364.40 89,303,759.96
42Annual Report 2012 C.P.L. Group Public Company Limited
Agingoftradeandnotesreceivablesareasfollows:
Asof Asof
December31,2012 December31,2011
Baht Baht
Withincreditterm 68,704,435.41 51,461,602.75
Overdue1to30days 31,988,952.53 14,091,882.60
Overdue31to60days 3,047,726.73 2,367,352.00
Overdue61to90days 1,423,232.38 29,061.16
Overdue91to180days 417,465.30 1,809,896.37
Overdue181to365days 56,658.65 22,407,556.13
Overdueover366days 21,978,403.34 22,508,873.18
Total 127,616,874.34 114,676,224.19
LessAllowanceforDoubtfulDebt (21,978,403.34) (29,904,335.59)
LessEstimationofDebtReductionfrom
ReturnedGoodsandDiscountPayment (3,079,049.82) (5,918,599.02)
Net 102,559,421.18 78,853,289.58
OtherreceivablesasofDecember31,2012and2011consistof:
Asof Asof
December31,2012 December31,2011
Baht Baht
PrepaidExpense 1,259,592.15 1,233,191.54
AccruedRevenue 2,470,596.90 370,969.86
RevenueDepartmentReceivable 3,897,071.37 889,014.92
PrepaidIncomeTax - 7,407,394.65
OtherReceivables 594,682.80 549,899.41
Total 8,221,943.22 10,450,470.38
FortheyearsendedDecember31,2012and2011,theCompanyhasmovementofallowance
fordoubtfuldebtasfollows:
For the years ended
December31,2012 December31,2011
Baht Baht
BeginningBalance (29,904,335.59) (22,928,354.40)
IncreasewithinPeriod (14,658,751.65) (7,475,981.19)
ReversewithinPeriod 12,575,810.72 500,000.00
WrittenoffasBadDebt 10,008,873.18 -
EndingBalance (21,978,403.34) (29,904,335.59)
43Annual Report 2012 C.P.L. Group Public Company Limited
FortheyearsendedDecember31,2012and2011,theCompanyhasmovementofestimationof
debtreductionfromreturnedgoodsanddiscountpaymentasfollows:
For the years ended
December31,2012 December31,2011
Baht Baht
BeginningBalance (5,918,599.02) (4,816,243.83)
IncreasewithinPeriod (11,102,208.32) (21,930,116.46)
DecreasewithinPeriod 13,941,757.52 20,827,761.27
EndingBalance (3,079,049.82) (5,918,599.02)
AsofDecember31,2012and2011,tradereceivablesoversea-relatedcompanythatisoverdue
over366daysand181daysrespectively,hadmadewrittenrequestforgraduallysettlementtotheCompany
bythemachineswhichhadtheapproximatevalueinamountofUSD0.23millionwithinthequarter
2/2012,theremainingwillbecompletelysettledwithinthequarter4/2012andtheCompanyexpected
thatitwillbecollectible.Laterinthequarter2/2012,suchtradereceivablesoversea-relatedcompany
isunabletocomplythatsettlementplan.However,theCompanyhasrecognizedthewholeamountof
allowancefordoubtfuldebt,whichthemanagementoftheCompanywillfollow-upthecollectionfrom
suchtradereceivablescloselytominimizethedamageincurredtotheCompany.
8. Inventories - Net
Consistof:
Asof Asof
December31,2012 December31,2011
Baht Baht
FinishedGoods 10,249,426.10 29,926,582.50
RawMaterials 16,345,928.20 36,826,587.68
Work-in-Process 475,604,366.42 573,417,867.80
Chemical 38,010,306.71 56,181,127.82
SparePart 2,137,947.70 2,890,804.03
Goods-in-Transit 74,341,309.18 46,669,897.45
LessAllowancefromDeclininginValueofInventories (6,871,251.40) (2,065,733.79)
PlusEstimationCostofAllowanceforReturnedGoods 623,796.21 3,029,052.22
Net 610,441,829.12 746,876,185.71
44Annual Report 2012 C.P.L. Group Public Company Limited
FortheyearsendedDecember31,2012and2011,theCompanyhasmovementofallowancefrom
declininginvalueofinventoriesasfollows:
Asof Asof
December31,2012 December31,2011
Baht Baht
BeginningBalance (2,065,733.79) (7,297,540.90)
IncreasewithinPeriod (8,205,180.69) (3,513,598.82)
ReversewithinPeriod 3,399,663.08 8,745,405.93
EndingBalance (6,871,251.40) (2,065,733.79)
FortheyearsendedDecember31,2012and2011,theCompanyhasmovementofestimationcost
ofallowanceforreturnedgoodsasfollows:
For the years ended
December31,2012 December31,2011
Baht Baht
BeginningBalance 3,029,052.22 2,943,514.53
IncreasewithinPeriod 2,944,299.63 12,880,068.19
DecreasewithinPeriod (5,349,555.64) (12,794,530.50)
EndingBalance 623,796.21 3,029,052.22
AsofDecember31,2012and2011,theCompanyhasinsuredrawmaterials,workinprocess,
finishedgoodsandsuppliesinvalueofBaht614million,equallyfortwoyearswhichthebeneficiary
frominsuranceisgrantertoonemerchantbankinnote13.
45Annual Report 2012 C.P.L. Group Public Company Limited
9. TemporaryInvestments/Long-TermInvestments-Net
Consistof:
Activities
Placeof
incorporation
incorporation
ShareCapital
%of
Shareholding
OriginalCost
ofInvestment
Investment
Asof
Dividends
For the year ended
December31,
2012
December31,
2011
December31,
2012
December31,
2011
U.S.Dollar % U.S.Dollar Baht Baht Baht Baht
9.1GeneralInvestment:
C.P.L.INTERNATIONAL Businessof BritishVirgin
COMPANYLIMITED Tannery Islands 8,000,000.00 15 1,200,000.00 51,483,750.00 51,483,750.00 - -
PlusAdvancePaymentfor
CapitalIncrease 1,000,000.00 15 150,000.00 4,618,500.00 - - -
LessAllowanceforImpairment (21,232,420.77) (14,068,240.39) - -
Net 34,869,829.23 37,415,509.61 - -
SIRINRATCOMPANY Building Thai Baht Baht
LIMITED For rent 15,000,000.00 3 450,000.00 450,000.00 450,000.00 - -
TotalGeneralInvestment 35,319,829.23 37,865,509.61 - -
9.2InvestmentinDebtInstrumentheldtoMaturity:
DebtInstrumentMaturityin2-5years 10,000,000.00 10,000,000.00
DebtInstrumentMaturityin6-10years 34,000,000.00 18,000,000.00
TotalInvestmentinDebtInstrumentheldtoMaturity 44,000,000.00 28,000,000.00
TotalLong-TermInvestments 79,319,829.23 65,865,509.61
9.3TemporaryInvestments:
InvestmentsinFixedDeposit4months 30,000,000.00 -
DebtInstrumentMaturityin1years - 16,000,000.00
TotalTemporaryInvestments 30,000,000.00 16,000,000.00
FortheyearsendedDecember31,2012and2011,theCompanyhasmovementofallowancefor
impairmentofgeneralinvestmentasfollows:
For the years ended
December31,2012 December31,2012
Baht Baht
BeginningBalance (14,068,240.39) (13,152,489.19)
IncreasewithinPeriod (7,164,180.38) (915,751.20)
DecreasewithinPeriod - -
EndingBalance (21,232,420.77) (14,068,240.39)
GeneralInvestment
Inaccordancewithminuteoftheboardofdirectorsmeetingno.2/2012onMarch19,2012,ithas
passedaunanimousresolutiontoapprovethecapitalincreaseinC.P.L.INTERNATIONALCO.,LTD.in
theproportionof15%oftheauthorizedsharecapitalincreaseinamountofUSD1.0million,totalingin
amountofBaht4.62million.BecausethesuchCompanyhasfacedthefinancialdifficultiesinworking
capital,cashflowandthebusinessoperations.Theobjectiveofcapitalincreaseistosettletheseverance
payforemployees.Presently,suchcapitalincreaseisnotsuccess,theCompanyhasmadefullyallowance
forimpairmentinadvancepaymentforcapitalincrease.
46Annual Report 2012 C.P.L. Group Public Company Limited
InvestmentinDebtInstrumentHeldtoMaturity
AsofDecember31,2012,amountofBaht16.00millionwasinvestmentinunsubordinatedsecured
andholdernamedefinabledebentures.Thematurityofdebenturesfor6years9months19daysfrom
issueddateforperiodsinceJanuary27,2012toNovember15,2018withinterestrateyears1-4is
4.00%perannum,interestyears5-6is4.40%perannumandsinceinterestyearsover6tomaturityis
5.50%perannum.
AsofDecember31,2012and2011,amountofBaht10.00millionwasinvestmentinunsubordinated
securedandholdernamedefinableadebentures.Thematuritydebenturesfor4yearsfromissuedate
forperiodsinceOctober1,2010toOctober1,2014withinterestrateof3.85%perannum.
AsofDecember31,2012and2011,amountofBaht18.00millionwasdebentures intypeof
non-guaranteed,non-convertible.Thematurityofdebenturesfor10yearsfromissueddateforperiod
sinceOctober22,2009toOctober22,2019withinterestrateyears1-5is4.80%perannumandinterest
years6-10is6.00%perannum.
AsofDecember31,2011,amountofBaht16.00millionwasinvestmentinunsubordinatedsecured
andholdernamedefinabledebentures.Thematurityofdebenturesfor8yearsfromissueddatefor
periodsinceMay20,2004toMay20,2012withinterestrateyears1-4is4.25%perannumandinterest
years5-8is5.75%perannum.
InvestmentsinFixedDeposit
AsofDecember31,2012,amountofBaht30.00millionwasinvestmentinfixeddeposit4months,
sinceDecember17,2012toApril17,2013withinterestrateat3.05%perannum.
10. InvestmentProperty-Net
AsofDecember31,2012and2011,TheCompanyinvestmentpropertyistheirownedlandwithout
specificpurposeofuseinfutureandexploitingforrentalincome,whichitsinvestmentpropertyhadthe
bookvalueamountofBaht39.45millionandfairvalueamountofBaht42.08million.
47Annual Report 2012 C.P.L. Group Public Company Limited
11.
Prop
erty,P
lantand
Equ
ipmen
t-Net
Con
sistof:
Land
and
Land
Improvem
ent
Buildingsand
Buildings
Improvem
ent
Mac
hine
s an
d
Equipm
ents
Vehicles
Fixturesand
Office
Equipm
ents
WasteW
ater
Storage
Assetsin
Prog
ress
Total
Baht
Baht
Baht
Baht
Baht
Baht
Baht
Baht
As o
f Dec
embe
r 31
, 20
10
Cost
50,654,770.00
153,167,503.04
232,641,303.65
29,538,986.08
8,578,634.42
6,250,000.00
-480,831,197.19
LessAc
cumulated
De
preciation
-(122,478,148.98)
(150,022,118.44)
(22,120,924.30)
(6,162,342.70)
(6,249,997.89)
-(307,033,532.31)
Book
value
50,654
,770
.00
30,689
,354
.06
82,619
,185
.21
7,41
8,06
1.78
2,41
6,29
1.72
2.11
-17
3,79
7,66
4.88
Tran
sactions
during the ye
ar
ende
d Dec
embe
r 31
, 20
11
Purchase
60,000.00
-1,702,500.00
1,012,663.56
916,204.39
-3,780,947.94
7,472,315.89
Disposal
--
(2,160,038.00)
(885,746.82)
--
-(3,045,784.82)
Depreciationfortheyear
-(4,041,652.52)
(16,727,116.59)
(3,877,017.07)
(916,424.85)
--
(25,562,211.03)
DepreciationforDisposal
--
2,061,653.44
885,743.82
--
-2,947,397.26
Ending
boo
k va
lue
50
,714
,770
.00
26,647
,701
.54
67,496
,184
.06
4,55
3,70
5.27
2,41
6,07
1.26
2.11
3,78
0,94
7.94
155,60
9,38
2.18
As o
f Dec
embe
r 31
, 20
11
Cost
50,714,770.00
153,167,503.04
232,183,765.65
29,665,902.82
9,494,838.81
6,250,000.00
3,780,947.94
485,257,728.26
LessAc
cumulated
De
preciation
-(126,519,801.50)
(164,687,581.59)
(25,112,197.55)
(7,078,767.55)
(6,249,997.89)
-(329,648,346.08)
Book
value
50,714
,770
.00
26,647
,701
.54
67,496
,184
.06
4,55
3,70
5.27
2,41
6,07
1.26
2.11
3,78
0,94
7.94
155,60
9,38
2.18
48Annual Report 2012 C.P.L. Group Public Company Limited
Land
and
Land
Improvem
ent
Buildingsand
Buildings
Improvem
ent
Mac
hine
s an
d
Equipm
ents
Vehicles
Fixturesand
Office
Equipm
ents
WasteW
ater
Storage
Assetsin
Prog
ress
Total
Baht
Baht
Baht
Baht
Baht
Baht
Baht
Baht
As o
f Dec
embe
r 31
, 20
11
Cost
50,714,770.00
153,167,503.04
232,183,765.65
29,665,902.82
9,494,838.81
6,250,000.00
3,780,947.94
485,257,728.26
LessAc
cumulated
De
preciation
-(126,519,801.50)
(164,687,581.59)
(25,112,197.55)
(7,078,767.55)
(6,249,997.89)
-(329,648,346.08)
Book
value
50,714,770.00
26,647,701.54
67,496,184.06
4,553,705.27
2,416,071.26
2.11
3,780,947.94
155,609,382.18
Tran
sactions
during the ye
ar
en
ded
Dec
embe
r 31
, 20
12
Purchase
--
5,483,997.42
1,345,728.97
569,085.10
--
7,398,811.49
Transferin/(Transferou
t)-
-3,780,947.94
--
-(3,780,947.94)
-
Disposal
--
(329,160.00)
(1,479,000.00)
--
-(1,808,160.00)
Written-offAs
sets
--
-(3,271.03)
(2,976,264.09)
--
(2,979,535.12)
Depreciationfortheyear
-(3,214,212.01)
(15,531,143.29)
(1,845,972.83)
(982,720.13)
--
(21,574,048.26)
DepreciationforDisposal/
Written-offAs
sets
--
329,159.00
1,482,268.03
2,940,889.75
--
4,752,316.78
Ending
boo
k va
lue
50
,714
,770
.00
23,433
,489
.53
61,229
,985
.13
4,05
3,45
8.41
1,96
7,06
1.89
2.11
-14
1,39
8,76
7.07
As o
f Dec
embe
r 31
, 20
12
Cost
50,714,770.00
153,167,503.04
241,119,551.01
29,529,360.76
7,087,659.82
6,250,000.00
-487,868,844.63
LessAc
cumulated
De
preciation
-(129,734,013.51)
(179,889,565.88)
(25,475,902.35)
(5,120,597.93)
(6,249,997.89)
-(346,470,077.56)
Book
value
50,714
,770
.00
23,433
,489
.53
61,229
,985
.13
4,05
3,45
8.41
1,96
7,06
1.89
2.11
-14
1,39
8,76
7.07
49Annual Report 2012 C.P.L. Group Public Company Limited
AsofDecember31,2012and2011,theCompanyhadassetswiththedepreciationfullycalculated
butstilloperatewhichhadacostvalueofBaht219.13millionandBaht193.60millionrespectively.The
netbookvalueofwhichwasnowBaht692.00andBaht587.00respectively.
AsofDecember31,2012and2011,theCompanypledgedandmortgagedlandplusproperty,
machinery and some equipmentwhich the net book value ofBaht 123.98million andBaht 133.50
millionrespectively,ascollateralagainstalltypeofliabilityatthemerchantbankandbeneficiaryfrom
theinsuranceintheamountaccordingtotheinsurancecontractinBaht216.00million,equallyfortwo
years.ItisgiventomerchantbankaccordingtonoteNo.13.
12. OtherIntangibleAssets-Net
Consistof:
ComputerSoftwareBaht
As of December 31, 2010Cost 264,999.59LessAllowanceforImpairmentofAssets (264,999.59)Book Value -TransactionsduringtheyearendedDecember31,2011Purchase 9,544,616.00AmortizationExpenses (7,740.82)Ending book value 9,536,875.18As of December 31, 2011Cost 9,809,615.59LessAllowanceforImpairmentofAssets (264,999.59)AccumulatedAmortization (7,740.82)Book Value 9,536,875.18
ComputerSoftwareBaht
As of December 31, 2011Cost 9,809,615.59LessAllowanceforImpairmentofAssets (264,999.59)AccumulatedAmortization (7,740.82)Book Value 9,536,875.18TransactionsduringtheyearendedDecember31,2012Purchase 180,000.00Written-offAssets (264,999.59)Amortizationfortheyear (1,472,555.27)AllowanceforImpairmentofAssetsforWritten-off 264,999.59Ending book value 8,244,319.91As of December 31, 2012Cost 9,724,616.00LessAccumulatedAmortization (1,480,296.09)Book value 8,244,319.91
50Annual Report 2012 C.P.L. Group Public Company Limited
13. CreditFacilitiesandGuarantee
TheCompanyhascreditlinefromcommercialbankandfinancialinstitutionsinformbankoverdraft,
trustreceipts,short-termloan,letterofguarantee,creditlineforforwardcontract,andforeignexchange.
AsofDecember31,2012and2011hasgrantedthetotalcreditlineinamountofBath1,165.00million
andBath1,260.00millionrespectively,andamountofUSdollar3.00million,equallyfortwoyears.It
ispledgedbymortgageregisteroflandplusproperty,machineryandequipment,andbeneficiaryfrom
insuranceininventory,suchlandplusproperty,machineryandequipmentaccordingtonoteNo8and11.
14. Short-TermBorrowingsfromFinancialInstitutions
AsofDecember31,2011,thewholeamountisborrowingfrommerchantbankinformoftrust
receiptpayablewithcarriedtheinterestrateof7.25–8.37%perannum.Undertermoftrustreceipt
contract,theCompanyreceivesmerchandiseorderedbyusingcreditofthefinancialinstitution.Hence,
theCompanyconstitutesobligationcommitmenttothefinancialinstitutionforsuchmerchandisefeeboth
thatkeptordisposed.
SuchaboveborrowingconstitutescollateralaccordingtonoteNo13.
15. TradeandOtherPayables
Consistof:
Asof Asof
December31,2012 December31,2011
Baht Baht
TradePayables-Domestic 62,456,813.21 60,072,460.00
TradePayables-Oversea 56,989,899.61 49,575,368.73
NotesPayables - 3,691.50
TradeandNotesPayables 119,446,712.82 109,651,520.23
OtherPayables 20,180,429.50 20,295,152.30
Total 139,627,142.32 129,946,672.53
OtherpayablesasofDecember31,2012and2011consistof;
Asof Asof
December31,2012 December31,2011
Baht Baht
AssetsPayables 848,812.28 1,127,500.00
AccruedExpenses 14,087,786.68 14,096,152.71
AdvanceReceiptforGoods 2,231,029.87 2,731,438.74
OtherPayables 3,012,800.67 2,340,060.85
Total 20,180,429.50 20,295,152.30
51Annual Report 2012 C.P.L. Group Public Company Limited
16. EmployeesBenefitObligation
EmployeeBenefitsObligationareasfollows:
For the year ended
December31,
2012 2011
Baht Baht
PresentvalueforobligationasofJanuary1, 21,147,958.00 18,796,337.00
Currentservicecost 1,772,084.00 1,641,909.00
Interestexpenses 791,500.00 709,712.00
PresentvalueforobligationasofDecember31, 23,711,542.00 21,147,958.00
Theprincipalassumptionsusedforthepurposesoftheactuarialvaluationwereasfollows:
Discountrate 3.77%
AverageSalaryincreaserate 4.66%
Mortalityrate mortalityfromtableofmortalityyear2008
Disabilityrate 5%ofmortality
Employeeturnoverrate 2%–49%
Retirementage 60years
17. ShareCapitalFor the year ended
December31,2012
For the year ended
December31,2011
Par
Value
Numberof
Share
Amount Numberof
Share
Amount
Baht Shares Baht Shares Baht
AuthorizedShareCapital
BeginningOrdinaryShares 10.00 26,399,995 263,999,950.00 26,399,995 263,999,950.00
EndingOrdinaryShares 10.00 26,399,995 263,999,950.00 26,399,995 263,999,950.00
IssuedandPaid-upShareCapital
BeginningOrdinaryShares 10.00 26,399,995 263,999,950.00 26,399,995 263,999,950.00
EndingOrdinaryShares 10.00 26,399,995 263,999,950.00 26,399,995 263,999,950.00
18. Paid Dividends
InaccordancewiththeminuteoftheAnnualGeneralShareholders’Meetingfortheyear2012
which held on April 25, 2012, it is unanimously resolved that the Company appropriates retained
earningsfor2011asdividendtoshareholdersinnumberof26.39millionsharesintherateofBaht2.00
pershareaggregatingtoamountofBaht52.79million.DividendisrepayableonMay15,2012,whereby
theCompanyhasalreadypaiddividends.
InaccordancewiththeminuteoftheAnnualGeneralShareholders’Meetingfortheyear2011
which held on April 29, 2011, it is unanimously resolved that the Company appropriates retained
earningsfor2010asdividendtoshareholdersinnumberof26.39millionsharesintherateofBaht1.75
52Annual Report 2012 C.P.L. Group Public Company Limited
pershareaggregatingtoamountofBaht46.19million.DividendisrepayableonMay25,2011,whereby
theCompanyhasalreadypaiddividends.
19. Capital Management
Theprimaryobjectivesof theCompany’scapitalmanagementare tomaintain theirabilities to
continueasagoingconcernandtomaintainanappropriatecapitalstructure.
AsofDecember31,2012and2011,debtstoequityratiointhefinancialstatementsis0.18:1
and0.20:1respectively.
20. TaxExpense
FortheyearendedDecember31,2012and2011,theCompanycalculatedcorporateincometaxat
23%and30%respectivelyofaccountingnetprofitafteraddingadjustedtransactioninaccordancewith
theRevenueCodewhichismainlyreversalofallowancefordoubtfuldebt,estimationofdebtreductionfrom
returngoodsanddiscountpayment,estimationcostofallowanceforreturngoods,lossfromimpairment
ofgeneralinvestmentandlossfromdeclininginvalueofinventories,etc.
21. ExpensesbyNature
Consistof:
For the year ended
December31,
2012 2011
Baht Baht
ChangingwithinWorkinProcessandFinishGoods 117,490,657.78 (149,325,466.32)
RawMaterialandChemicalUsed 1,297,030,959.10 1,537,271,563.95
LossfromDeclininginValueofInventories(Reversal) 4,805,517.61 (5,231,807.11)
EmployeeExpenses 134,465,291.25 131,209,793.89
Managements’Remuneration 25,492,104.00 16,830,968.00
Depreciation 21,574,048.26 25,562,211.03
BadDebtandDoubtfulDebt(Reversal) 2,082,940.93 7,046,865.22
LossfromImpairmentofLong-TermInvestment 7,164,180.38 915,751.20
TransportationExpense 11,656,858.98 8,956,110.90
OtherProductionExpenses 68,948,758.78 67,916,432.85
OtherExpenses 13,490,314.72 11,681,541.70
Total 1,704,201,631.79 1,652,833,965.31
22. FinancialDataSegregatedbyBusinessSector
TheCompanyoperates inonlyonebusinesssector, namelymanufacturinganddistributionof
leatherproductsandoperateinonegeographicalarea,whichisThailand.Thusallincome,profitand
entireassetsshowninthefinancialstatementsarerelatedtothesaidbusinesssectorandgeographical
area.
53Annual Report 2012 C.P.L. Group Public Company Limited
FortheyearsendedDecember31,2012and2011,theCompanyhasnetdomesticsalesand
foreignsalesasfollows:
Domestic Foreign Total
2012 2011 2012 2011 2012 2011
’000Baht ’000Baht ’000Baht ’000Baht ’000Baht ’000Baht
RevenuefromSales 331,111 426,918 1,405,858 1,333,014 1,736,969 1,759,932
GrossProfit 21,191 34,423 134,126 186,266 155,317 220,689
GainfromExchangeRate 15,328 10,584
OtherIncome 16,553 7,257
SellingExpense (42,674) (44,428)
AdministrativeExpense (70,629) (61,199)
DoubtfulDebt (14,659) (7,047)
ReversalforDoubtfulDebt 12,576 -
LossfromImpairmentof
Long-TermInvestment (7,164) (916)
FinancialCosts (3,925) (3,886)
ProfitBeforeIncomeTaxExpense 60,723 121,054
TaxExpense (18,019) (39,230)
ProfitfortheYear 42,704 81,824
23. FinancialInstruments
23.1 PolicyofFinancialRiskManagement
The Company constitutes risk in relation to change of interest rates and exchange rates by
whichtheCompanyconsiderstoutilizeanappropriatefinancialinstrumenttohedgeagainstsuchrisk.
However,theCompanyhasnopolicytoholdorissuefinancialinstrumentforspeculatingorfortrading.
23.2 Risk from Interest Rates
Interestrateriskarisesfromthefluctuationofinterestratesinthefuturewhichwillaffectoperations
andcashflowoftheCompany,whichtheCompanyhadassetsandliabilitiesinstrumentsagainstthis
risk as follow:
Amount
AsofDecember31,
Interest rate per annum
AsofDecember31,
2012 2011 2012 2011
MillionBaht MillionBaht % %
BankDeposit–SavingAccount 91.62 18.61 0.05–0.75 0.05–0.75
BankDeposit–FixedAccount 30.00 - 3.05 -
InvestmentinDebtInstrument
heldtoMaturity 44.00 44.00 3.85–5.75 3.85–5.75
TrustReceiptsPayable - 28.14 - 7.25–8.37
54Annual Report 2012 C.P.L. Group Public Company Limited
23.3 Risk on Exchange Rates
Risk on exchange rates is regarded to purchase raw material, machines and sales denominated
inforeigncurrencies.TheCompanyhasfinancialassetsandfinancialliabilitiesinforeigncurrenciesas
follows:
Currencies FinancialAssets FinancialLiabilities
Asof
December31,2012
Asof
December31,2011
Asof
December31,2012
Asof
December31,2011
EUR - 400.00 - -
GBP 182.00 - - -
CNY - 10,405.00 - -
INR 2,850.00 2,850.00 - -
USDollars 2,558,051.04 1,660,738.14 1,914,836.03 2,489,704.07
AsofDecember31,2012and2011,theCompanyhedgetheriskfromforeigncurrencyexchange
rate incurred from sale good as foreign currency by performing the forward foreign currency contract
as follows:
Asof
December31,2012
Asof
December31,2011
CreditLimitforForwardContract 120.00MillionBaht 120.00MillionBaht
ValueofForwardContract–Sale 0.18MillionUSDollars 0.62MillionUSDollars
ValueofForwardContract-Sale 5.67MillionBaht 19.16MillionBaht
FairValue 5.66MillionBaht 19.77MillionBaht
Fairvalueoftheforwardcontract–saleiscomputedbyusingratesdeterminedbythosecounter
partybankasofthedateinstatementsoffinancialposition.
23.4 Credit Risk
TheCompanyhasnotsignificantriskfromcreditriskinconnectiontotradereceivablessince
the Company provides sales overseas by L/C application or alternatively clients make goods payment
inadvance.Moreover,domesticsalesaretypicallyperformedtofinanciallysecuredcompanieswhose
capability is good at debt repayment. The Company has dealt with these clients for a long time:
therefore,itisanticipatedofnonsignificantriskderivedfromunpaymentofthoseaccountsreceivable.
However,theCompanysufficientlyconsideredtheallowanceofdoubtfuldebt.
23.5 FairValue
Duetothefinancialassetsandliabilitiesaremainlyshorttermtype,investmentindebtinstrument
and loans has interest rates be similar to market rates, the management believes that book values of
suchfinancialassetsandliabilitiesreflectvalueswhichdonotmateriallydifferfromtheirfairvalues.
24. TransactionswithRelatedParties
TheCompanyhadsignificantbusinesstransactionswiththerelatedcompanies.Suchtransactions,
whichhavebeenconcludedoncommercialtermsandbases,agreeduponbetweentheCompanywith
thesecompaniesareinordinarycourseofbusinessaresummarizedbelow:
55Annual Report 2012 C.P.L. Group Public Company Limited
24.1 Inter-RevenuesandExpensesFor the year ended
December31,
2012 2011
PricingPolicy Baht Baht
Inter-Transaction with Related Companies
SalesMaterial Costplusmargin
approximate20% 169,200.00 353,940.00
SalesGoods Normalbusinesspriceswhichcan
becomparedwithtransactions
incurred by outside parties
16,374,596.91 11,648,952.55
PurchasesMaterial Priceiscompliedwiththeprices
whicharemutuallyagreedupon
91,075,412.00 82,828,348.00
Inter-Transaction with Related Companies
PurchasesGoods Priceiscompliedwiththeprices
whicharemutuallyagreedupon
- 15,245,548.75
PurchasesofAsset Priceiscompliedwiththeprices
whicharemutuallyagreedupon
154,092.79 -
OtherExpenses Priceiscompliedwiththeprices
whicharemutuallyagreedupon
332,532.33 -
ProfessionalService Pricesinaccordancewiththe
contract
- 60,000.00
24.2 Inter-AssetsandLiabilities
Asof Asof
December31,
2012
December31,
2011
Baht Baht
Trade and Notes Receivables
TheRelatedCompanies
-C.P.L.MARKETINGCO.,LTD. 21,978,403.34 22,376,985.24
-EAGLECHEMICALINDUSTRIALCO.,LTD - 27,606.00
-MIMIINDUSTRAILCO.,LTD. 40,885.51 45,340.72
-MITNIYUM(MANWOOD)CO.,LTD 3,909,868.97 491,691.43
Total 25,929,157.82 22,941,623.39
LessAllowanceforDoubtfulDebt (21,978,403.34) (7,395,462.41)
Net 3,950,754.48 15,546,160.98
Trade Payables
TheRelatedCompany
-EAGLECHEMICALINDUSTRIALCO.,LTD 32,951,347.64 27,959,768.75
Total 32,951,347.64 27,959,768.75
56Annual Report 2012 C.P.L. Group Public Company Limited
Asof Asof
December31,
2012
December31,
2011
Baht Baht
Accrued Expenses
TheRelatedCompany
-APPLYD.B.INDUSTRIALCO.,LTD. - 358,582.68
Total - 358,582.68
24.3 ManagementBenefitExpenses
For the year ended
December31,
2012 2011
Baht Baht
Short-TermEmployeeBenefits 25,161,600.00 16,524,000.00
Post-EmploymentBenefits 330,504.00 306,968.00
Total 25,492,104.00 16,830,968.00
Thismanagementremunerationisbenefitthatrepayabletomanagementanddirectorsofthe
Company.Itiscomposedofremunerationthatismonetary,i.e.salary,relatedbenefitandremuneration
ofdirectorsincludingremunerationbenefitinotherform.TheCompany’smanagementisthepersons
whoaredefinedundertheSecuritiesandExchangeAct.
24.4 The Relationship with the Company
Consist of:
Name RelationshipC.P.L.MARKETINGCO.,LTD. RelatedCompanybyindirectshareholdingviaC.P.L.INTERNATIONAL
CO.,LTD.EAGLECHEMICALINDUSTRIALCO.,LTD. RelatedCompanybyCommonGroupShareholdersandExecutivesAPPLYD.B.INDUSTRIALCO.,LTD. RelatedCompanybyCommonGroupShareholdersandExecutivesMIMIINDUSTRAILCO.,LTD. RelatedCompanybyCommonGroupShareholdersandExecutivesMITNIYUM(MANWOOD)CO.,LTD. RelatedCompanybyCommonGroupShareholdersandExecutivesCHAROENSINASSETCO.,LTD. RelatedCompanybyCommonGroupShareholdersandExecutives
57Annual Report 2012 C.P.L. Group Public Company Limited
25. Non-CashFlowsTransactionsFor the year ended
December31,2012 2011Baht Baht
Property,PlantandEquipmentIncreasedfrom
AssetsPayables 848,812.28 1,127,500.00BeginningRetainedEarningsdecreasedfrom
EmployeeBenefitObligation - 18,796,337.00Off-SetbetweenTradeReceivablesandTrade
Payables-RelatedCompanies 486,625.12 13,447,092.10
26. ObligationandContingentLiabilities
ApartfromliabilitiesshownonthestatementoffinancialpositionasofDecember31,2012and
2011, theCompanystill remainsotherobligationandcontingent liabilitieswithcommercialbanksas
follows:Asof Asof
December31,2012 December31,2011
MillionBaht MillionBaht
-LettersofCredit
CreditLineforBaht730.0Million,Unused 685.11 638.38
CreditLinefor3.0MillionUSDollar,Unused 46.46 47.94
-LettersofGuaranteethatissuedbyBankfor
ElectricityConsumption 3.91 3.91
58Annual Report 2012 C.P.L. Group Public Company Limited
27. ReclassificationofAccounts
TheCompanyreclassifiedsomeitemsincomparativefinancialstatementsinordertocomplywith
thepresentfinancialstatements,whichdoesnothaveanyaffectsonnetprofit(loss)orshareholders’
equityalreadypresented.Thedetailsofreclassificationareasfollows:
AsPreviouslyReported
Reclassified AsCurrentlyReported
Baht Baht Baht
Statement of Financial Position as of January 1, 2011
TradeandNotesReceivables-OtherCompanies-Net 117,709,077.72 (117,709,077.72) -
TradeandNotesReceivables-RelatedCompanies-Net 48,430,804.73 (48,430,804.73) -
TradeandOtherReceivables-Net - 175,837,897.35 175,837,897.35
OtherCurrentAssets 9,874,110.30 (9,698,014.90) 176,095.40
InvestmentProperty-Net - 39,450,000.00 39,450,000.00
Property,PlantandEquipment-Net 213,247,664.88 (39,450,000.00) 173,797,664.88
TradeandNotesPayables 67,053,542.50 (67,053,542.50) -
TradePayables-RelatedCompanies 35,126,826.70 (35,126,826.70) -
TradeandOtherPayables - 125,862,391.85 125,862,391.85
AccruedExpenses 19,615,833.60 (19,615,833.60) -
AdvanceReceiptforGoods 1,125,281.31 (1,125,281.31) -
OtherCurrentLiabilities 2,940,907.74 (2,940,907.74) -
Statement of Financial Position as of December 31, 2011
CashandCashEquivalents 34,404,834.42 2,118,928.16 36,523,762.58
TradeandNotesReceivables-OtherCompanies-Net 65,426,056.76 (65,426,056.76) -
TradeandNotesReceivables-RelatedCompanies-Net 15,546,160.98 (15,546,160.98) -
TradeandOtherReceivables-Net - 89,303,759.96 89,303,759.96
OtherCurrentAssets 10,575,715.78 (10,450,470.38) 125,245.40
InvestmentProperty-Net - 39,450,000.00 39,450,000.00
Property,PlantandEquipment-Net 195,059,382.18 (39,450,000.00) 155,609,382.18
OtherIntangibleAssets-Net - 9,536,875.18 9,536,875.18
OtherNon-CurrentAssets 9,551,697.92 (9,536,875.18) 14,822.74
TradeandNotesPayables 81,691,751.48 (81,691,751.48) -
TradePayables-RelatedCompanies 27,959,768.75 (27,959,768.75) -
TradeandOtherPayables - 129,946,672.53 129,946,672.53
AccruedExpenses 14,096,152.71 (14,096,152.71) -
59Annual Report 2012 C.P.L. Group Public Company Limited
AsPreviouslyReported
Reclassified AsCurrentlyReported
Baht Baht Baht
Statement of Financial Position as of January 1, 2011
AdvanceReceiptforGoods 2,731,438.74 (2,731,438.74) -
OtherCurrentLiabilities 3,467,560.85 (3,467,560.85) -
Statement of Comprehensive Income for the year ended December 31, 2011
CostofSales (1,538,897,867.73) (345,664.00) (1,539,243,531.73)
AdministrativeExpense (51,051,193.78) (10,148,150.78) (61,199,344.56)
DoubtfulDebt - (7,046,865.22) (7,046,865.22)
Managements’Remuneration (16,830,968.00) 16,830,968.00 -
FinancialCosts (4,595,711.33) 709,712.00 (3,885,999.33)
28. ApprovaloftheFinancialStatements
ThefinancialstatementshavebeenapprovedbyauthorizeddirectorsoftheCompanyonFebruary
22,2013
60Annual Report 2012 C.P.L. Group Public Company Limited
The Remuneration in 2012 for Auditor
Companyname S.K.AccountantandServicesCo.,Ltd.
AuditorName Ms.WanrayaPuttasatienCPANo.4387
Fee 493,000Baht
Thecompanyhavenoconstitutesbusinesstransactionorpersonalityrelationshipwiththeauditoror
theauditor’sofficeneitherdirectnorindirect,thentherehavenootherremuneratetopaytoauditor’.
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