ANNUAL REPORT - listed companyrs.listedcompany.com/misc/ar/20160425-rs-ar2015-en.pdf · 2016-04-25 · In the past year, free tv industry encountered ... in impact towards the advertising

ANNUALREPORT

RS PUBLIC COMPANY LIMITED

MEDIAREVOLUTIONIST

1. Message from the Chairman and Chief Executive Officer 01

2. Board of Directors 04

3. Policy and Business Overview 16

4. Business Descriptions 19

5. Risk Factors 28

6. Property used in the business 32

7. Legal disputes 35

8. General information and other important information 37

9. Securities and Shareholder Information 44

10. Management Structure 46

11. Corporate Governance 63

12. Responsibilities toward society, environment, and related persons 77

13. Internal Control and Risk Management 86

14. Related Party Transactions 88

15. Financial Highlight 94

16. Management Discussion and Analysis 103

17. Financial Statement 114

CONTENT

1Message from the Chairman and

Chief Executive Officer

The year 2015 was an important step for RS in changing its corporate structure into the media company, after fully transformed its digital tv business under the “Channel 8” brand using number 27 of the nationwide tv reception. This was the result of competing and receiving the general operating television license in the category of license for using the frequency and operating the television business from the National Broadcasting and Telecommunications Commission (NBTC) in late 2013.

In the past year, free tv industry encountered a very intense competition from the digital tv business as each operator competed in capturing viewership which YCU�UJQYP�KPVQ�VJG�HQTO�QH�TCVKPI�ÌIWTG��YJKNG�CFXGTVKUKPI�DWFIGV�YCU�UVKNN�NKOKVGF��6JKU�TGÍGEVGF�UKVWCVKQP�QH�VJG�QXGTCNN�6JCK�GEQPQOKE�ÌIWTG�KP��CU��GXGP�VJQWIJ��KV�TGIKUVGTGF� an increase in economic growth comparing to previous year but overall picture was still stagnant. It was due to the fact that domestic economy from the previous year was heavily stumbled due to political turmoil. External factors also had some impact towards overall Thai economy that resulted in impact towards the advertising industry which rely its growth in conjunction with the country economic situation.

Message from the Chairman and Chief Executive Officer

Dear Shareholders,

MEDIA REVOLUTIONIST

At any rate, the overall Thai economy in 2016 is expected to improve, based on economic stimulus measures such as the measure to help low income earners, the measure to support SMEs, the measures to stimulate the real estate sector, etc. Other initiatives include more clear and concrete plans for public investments in infrastructure, which will help build trust in private sector investments and among consumers. As for exports and tourism, such UGEVQTU� CTG� DGPGÌVKPI� HTQO� VJG�YGCMGPKPI� QH� VJG�$CJV�currency. All these factors contribute to the anticipation that the GDP in 2016 will grow, leading the way for growth in the advertising industry.

As RS has experience for a long period of time and is ready in every operation whether in experienced VGCOU��RTQFWEKPI�XCTKGV[�EQPVGPVU��KPENWFKPI�VJG�ÌPCPEKCN�situations, these enable “Channel 8” to continuously increasing its rating. From data of AGB Nielsen Media Research, the “Channel 8” has number 4 rating nationwide, which includes rating for both the analogue and digital channels while variety programs and the sports programs receive huge response from viewers.

In 2015, the operating results showed a slightly decrease in revenue which was due to revenue from copyright management of the 2014 FIFA World Cup in the prior year. Excluding revenue from this event, revenue from the digital TV business recorded growth as each channel registered continuous good performance. Apart from “Channel 8” which showed number 4 rating in the country, the “Channel 2”, and “Sabaidee TV” also showed JKIJ�TCPMKPI�KP�VJG�UCVGNNKVG�VX�ECVGIQTKGU��4GXGPWG�HTQO��radio media business decreased slightly due to saturation in the industry but “Cool Fahrenheit 93” protected its OCTMGV�UJCTGU�KP�VGTO�QH�TGXGPWG�CPF�CWFKGPEG��4GXGPWG�from music distribution business decreased from last year from changes in consumers’ behavior. However, music business was considered an important business of the Company as it was the main source of contents and artists which can be extended to media business. Revenue from Event Business showed an increase from previous year due to increasing number of events.

On the corporate social responsibility, RS committed to activities for society in conjunction with the entertainment business all along. In 2015, we have joined in with variety of social projects including some of our own activities. Some of the projects that could be mentioned

03

Mr. Surachai Chetchotisak

Chairman and Chief Executive Officer

were “RS Birthday Charity”, the monthly activity that invited singers or actors who had birthday in that month to join in VJG�DGPGÌEKCN�CEVKXKVKGU�HQT�UQEKGV[�KP�OCP[�NQECVKQPU�UWEJ�as the “Children Foundation”, “Social Service Center for the Elders”, “School for the Blind”, “Veterans General Hospital”, etc. Moreover, there were many activities such CU�VJG�CEVKXKV[�QP�UGNNKPI�VJG�Á&QTI-CGY�-WNC[CÂ�ÍQYGT�QP� the occasion of the Disabled Day so that all income would be used to develop and support all disabled people throughout the country; campaign to raise awareness to RGQRNG�QP�VJG�Á#KFUÂ�RTQDNGO�CPF�VQ�DWKNF�MPQYNGFIG�QP�defense in the World Aids Day; campaign on selling the /CJKFQN�ÍCI�YKVJ�KPEQOG�FQPCVKPI�VQ�VJG�5KTKTCL�(QWPFCVKQP�to help the underserved patients and purchase medical equipment; activity on charity rally with income to build the hospital of the Thai Red Cross, etc.

Good corporate governance is always a very important factor in operating the RS business as indicates in the Corporate Governance Report of Thai Listed Companies 2015 that the Company has been listed in the very best CG scoring. The Company has reviewed its good corporate governance policy on the yearly basis and always instructs its Directors, Executives and employees to follow the policy. Apart from the goal in achieving the business success, we are determined to build sustainable society and balance that covers the economy, society and GPXKTQPOGPV��KPENWFKPI�VJG�DWKNFKPI�QH�NQPI�VGTO�DGPGÌV�HQT�our shareholders.

On behalf of the Company’s Board of Directors, YG�YQWNF� NKMG� VQ� VJCPM� UJCTGJQNFGTU�� DWUKPGUU� CNNKGU��customers, government agencies, and sponsors who JCXG�EQPÌFGPV�� VTWUV�� CPF�CNYC[U� UWRRQTV� WU� CNN� CNQPI��Most important of all are our employees and artists who dedicated their bodies and minds, and ready to change and encounter with every situations. All these have generated the corporate culture and important strong point for RS people in moving our organization forward towards QWT�QDLGEVKXG�UVTQPIN[�CPF�ÌTON[�

2Board of Directors

05

1. Mr.Surachai Chetchotisak

2. Mrs. Pornpan Techarungchaikul

3. Mr. Darm Nana

4. Mr. Danaisidh Peslapunt

5. Mr. Soopachai Nillawan

6. Mr. Sorat Vanichvarakij

7. Mr. Phisit Dachanabhirom

8. General Pairoj Panichsamai

9. Associate Professor Witaya Danthamrongkul

10. Mrs.Wansuda Thanasaranart

321

19

8765

4

Board of Directors

Age : 53 yearsPosition : Chairman

Chairman of the Executive Committee

Chief Executive Officer

38.06% Shareholding

Education :Honorary Doctorate Degree of Marketing,

Chandrakasem Rajabhat University

Bachelor’s degree of Political Sciences,

Ramkhamhaeng University

Thai Institute of Directors Training :Director Accreditation Program (DAP) Year 2003

Certificate Program in 2015 : -

Experience : • 2012 - Present Chairman RS Public Company Limited

• 2003 - Present Chairman of the Executive Committee

RS Public Company Limited

• 1992 - Present Chief Executive Officer


• 2003 - 2012 Vice Chairman RS Public Company Limited

Directorships in other companies that are not owned by the RS Public Company Limited :• Director of Chetchotisak Co.,Ltd.

• Director of Membership Co.,Ltd.

• Director of Tiger Fun Co.,Ltd.

• Director of Primo Posto Co.,Ltd.

Shareholding at the beginning of year 2015 (shares) : 388,900,000

Shares buying during year 2015 (shares) : 97,000,000

Shares selling during year 2015 (shares) : 101,500,000

Shareholding at the ending of year 2015 (shares) : 384,400,000

Shareholding at the ending of year 2015 (%) : 38.06

Mr.Surachai Chetchotisak

Annual Report 2015

07Mrs. Pornpan Techarungchaikul

Age : 45 yearsPosition : Director, Member of the Executive Committee

Chairman of the Corporate Governance Committee

Chairman of the Risk Management Committee

Chairman of the Human Development Committee

Company Secretary, Chief Operating Officer

None of Shareholding

Education : Master degree (MBA),

Sasin Graduate Institute of Business Administration of

Chulalongkorn University

Bachelor degree of Statistics,

Chulalongkorn University

Executive Development Program 4 (EDP4) Year 2009,

Thai Listed Companies Association

Thai Institute of Directors Training :Director Certification Program (DCP) Year 2007

Director Accreditation Program (DAP) Year 2004

Certificate Program in 2015: -

Experience: • 2011 – present Chairman of the Corporate Governance Committee RS Public Company Limited

• 2010 – present Chairman of the Risk Management Committee RS Public Company Limited

• 2008 – Present Company Secretary RS Public Company Limited

• 2007 – Present Chief Operating Officer RS Public Company Limited

• 2004 – Present Director, Member of the Executive Committee

Chairman of the Human Development Committee RS Public Company Limited

Directorships in other companies that are not owned by the RS Public Company Limited : - Shareholding at the beginning of year 2015 (shares) : -Shares buying during year 2015 (shares) : -Shares selling during year 2015 (shares) : -Shareholding at the ending of year 2015 (shares) : -Shareholding at the ending of year 2015 (%) : -

MEDIA REVOLUTIONIST

Mr. Darm Nana

Age : 46 yearsPosition : Director, Member of the Executive Committee

Member of the Corporate Governance Committee Member of the Risk Management Committee

Chief Financial Officer


Education : Master of Business Administration (MBA),

University of Notre Dame, Indiana, U.S.A

Bachelor degree of Arts in Economics (BA Econ),

Thammasat University




Experience :• 2011 – present Member of the Corporate Governance

Committee


• 2010 – present Member of the Risk Management Committee


• 2007 – Present Director, Member of the Executive Committee

Chief Financial Officer


• 2002 – 2007 Senior Vice President

Corporate Banking, HSBC Thailand

Directorships in other companies that are not owned by the RS Public Company Limited : -

Shareholding at the beginning of year 2015 (shares) : -

Shares buying during year 2015 (shares) : -

Shares selling during year 2015 (shares) : -

Shareholding at the ending of year 2015 (shares) : -

Shareholding at the ending of year 2015 (%) : -Annual Report 2015

09Mr. Danaisidh Peslapunt

Age : 60 yearsPosition : Director

Chief Legal Officer


Education :Thai Bar Degree, Institute of Legal Education

Thai Bar Association

Bachelor Degree of Law, Ramkhamhaeng University

Certificate of International Trade Law,

Institute of Legal Education Thai Bar Association

Certificate of Tax Law,

Institute of Legal Education Thai Bar Association



Financial Statements for Directors (FSD) Year 2008


Experience :• 2015 – present Chief Legal Officer RS Public Company Limited

• 2007 – present Director RS Public Company Limited

• 2007 – 2015 Executive Vice President – Central Legal Office RS Public Company Limited

• 2012 - 2014 Member of the Nomination and Remuneration Committee


• 1997 – 2007 Law Consultant RS Public Company Limited






Shareholding at the ending of year 2015 (%) : -

MEDIA REVOLUTIONIST

Mr. Soopachai Nillawan

Age : 49 yearsPosition : Director Managing Director - Music Business Executive Vice President 0.01% of Shareholding

Education :Bachelor degree of Journalism and Communication,


Executive Development Program 8 (EDP8) Year 2011,

Thai Listed Companies Association

Advanced Retail Management 8 (ARM8) Year 2011,

Panyapiwat Institute of Manangement,

CPALL Public Company Limited

Thai Institute of Directors Training : -


Experience :• 2015 – Present Director

Managing Director - Music Business


• 2008 – Present Executive Vice President


• 2001 – 2007 Managing Director

RSiam Co., Ltd.


Shareholding at the beginning of year 2015 (shares) : 76,500



Shareholding at the ending of year 2015 (shares) : 76,500


Annual Report 2015

11Mr. Sorat Vanichvarakij

Age : 42 yearsPosition : Director 10.99% Shareholding

Education :Master of Business Administration (MBA)

Asian Institute of Technology (AIT)

Bachelor degree of Marketing Business Administration

Assumption University of Thailand (ABAC)



Experience :• 2012 – Present Director


• 2003 – Present Chief Executive Officer

Pan Asia Industrial Company Limited

Directorships in other companies that are not owned by the RS Public Company Limited :• Pan Asia Industrial Company Limited

Shareholding at the beginning of year 2015 (shares) : 113,052,900

Shares buying during year 2015 (shares) : 7,947,100

Shares selling during year 2015 (shares) : 10,000,000

Shareholding at the ending of year 2015 (shares) : 111,000,000


MEDIA REVOLUTIONIST

Mr. Phisit Dachanabhirom

Age : 74 yearsPosition : Independent Director

Chairman of the Audit Committee

Chairman of the Nomination and Remuneration Committee None of Shareholding

Education :Bachelor Degree of Accounting, Thammasat University

Bachelor Degree of Commerce, Thammasat University

Certified Public Account No.966


Audit Committee Program (ACP) Year 2005



Experience:• 2007 – present Independent Director,

Chairman of the Audit Committee, Chairman of the Nomination and Remuneration Committee RS Public Company Limited

• 2013 – Present Director Don Muang Tollway Public Company Limited

• 2003 – Present Director and Audit Committee Chairman Jaymart Public Company Limited

• 2001 - present Chairman of the Executive Committee Professional Alliance Group Limited

• 1992 - present Director Polipharm Company Limited

• 2002 - 2014 Member of the Executive Committee Phuket International Hospital Company Limited

Annual Report 2015

Directorships in other companies that are not owned by the RS Public Company Limited :• Don Muang Tollway Public Company Limited

• Jaymart Public Company Limited

• Professional Alliance Group Limited

• Polipharm Company Limited

• Phuket International Hospital Company Limited






13General Pairoj Panichsamai

Age : 69 yearsPosition : Independent Director, Member of the Audit Committee

Member of the Nomination and Remuneration Committee


Education :Master degree of Social Development,

National Institute of Development Administration (NIDA)

Royal Military Academy Sandhurst U.K.

Bachelor of Law, School of law LL.B.,

Ramkhamhaeng University


Audit Committee Program (ACP) Year 2007


Finance for Non-Finance Director (FN) Year 2007


Experience :• 2007 – Present Independent Director, Member of the Audit Committee and Member of

the Nomination and Remuneration Committee RS Public Company Limited

• 2014 – Present Member of the National Legislative Assembly of Thailand 2014

• 2006 Deputy Supreme Commander Supreme Command Headquarters (Army)

• 2005 Chairman of the RTA Advisory Board

• 2000 Commanding General Army Weapons Production Control Center







MEDIA REVOLUTIONIST

Associate Professor Witaya DanthamrongkulAge : 53 yearsPosition : Independent Director, Member of the Audit Committee



Education :Master of Business Administration (MBA.)

Oregon State University, USA

Bachelor degree of Economic (1st Honor)

Thammasat University, Thailand




Experience :• 2007 – 12 January 2016

Independent Director, Member of the Audit

Committee and Member of the Nomination

and Remuneration Committee

RS Public Company Limited*

• Present Associate Professor and Lecturer,

Department of Human Resource and

Organization Management,

Faculty of Commerce and Accountancy


Deputy Director of Human Resources Institute,


• 2009 – present Independent Director and Audit

Committee Member

Prinsiri Public Company Limited

• 2006 – 2007 Director, Journal of Business Administration

Faculty of Commerce and Accountancy


• 2000 – 2001 Training Director

Institute of Small and Medium

Enterprises Development (ISMED

Directorships in other companies that arenot owned by the RS Public Company Limited• Independent Director and Audit Committee

Member, Prinsiri Public Company Limited






*Remark: Associate Professor Witaya Danthamrongkul

resigned from the position of Independent Director,

Member of the Audit Committee, Member of

the Nomination and Remuneration Committee

on January 13, 2016

Annual Report 2015

15Mrs.Wansuda Thanasaranart

Age : 64 yearsPosition : Independent Director

Member of the Audit Committee


0.01% of Shareholding

Education :Master of Business Administration (MBA),


Bachelor degree of Accounting,

Chiangmai University

Thai Institute of Directors Training : -


Experience :• 13 January 2016 – Present Independent Director,

Member of the Audit Committee and Member of

the Nomination and Remuneration Committee RS Public Company Limited*

• 2010 – Present Senior Vice President – Chinese and Corporate customers

Bangkok Bank Public Company Limited



Shares buying during year 2015 (shares) : 120,000

Shares selling during year 2015 (shares) : 30,000

Shareholding at the ending of year 2015 (shares) : 90,000


*Remark: Mrs.Wansuda Thanasaranart replaced Associate Professor Witaya Danthamrongkul in the position of Independent Director,

Member of the Audit Committee and Member of the Nomination and Remuneration Committee on January 13, 2016

3Policy and Business Overview

17Policy and Business Overview RS was established in 1976, starting from the music business. Later, the company was converted into a public EQORCP[��#PF�JCU�DGGP�NKUVGF�QP�VJG�5VQEM�'ZEJCPIG�QH�6JCKNCPF�KP��YKVJ�TGIKUVGTGF�ECRKVCN�QH��OKNNKQP�DCJV�CPF�changed its name to “RS Public Company Limited “. As of December 31, 2015, the Company had paid-up capital amount of 1,009,937,646 ordinary shares at one Baht par value. However, the company has continued to expand the music business to fully media including radio, television, and event management. At the end of 2013, the company won the Digital TV CWEVKQP�5VCPFCTF�&GÌPKVKQP�6[RG��EJCPPGN��6JG�%QORCP[�JCU�CFQRVGF�VJG�Á%JCPPGN��Â�VJCV�QTKIKPCNN[�CKTGF�QP�VJG�UCVGNNKVG�TV platform. Switching to Digital TV broadcast since April 2014. The company has operated under the Vision and Mission as follows.

Vision The revolutionist that creates entertainment products with social responsibility

Mission To offer quality entertainment products that meet our customer’s needs through the force of excellent human resource that is poised to respond to any changes and always explore new opportunities by adhering to the principles of modern management and technology.

Business overview of the Company and its subsidiaries Current business of RS contain 3 main business such as media business, music distribution and event management. which media business has the largest proportion. Media business consists of radio and television with Digital TV Channel 8 as a leader. Moreover the company also have 3 satellite TV channels such as Channel 2, Sabaidee TV and YOU Channel. Each channel of the company has been well received both in terms of audience and Media � CFXGTVKUGT�ENKGPVU��6JKU�OCMGU�VJG�OGFKC�DWUKPGUU�KU�ITQYKPI�UVGCFKN[��6JG�%QORCP[�JCU�DGGP�KPXGUVGF�VJTQWIJ� various subsidiaries. The details are as follows.

Subsidiaries of the company that owned 100 percent Contain

• RS Television Co.,Ltd (99.99%) operates television production and event management• Starz (Thailand) Co.,Ltd (99.99%) operates television production and event management• Coolism Co.,Ltd (99.99%) operates radio business and event management• Thai Copyright Collection Co.,Ltd (99.99%) operates copyright collection.• Poema Co.,Ltd (99.99%) operates event management• Aladdin House Co.,Ltd (99.99%) operates event management• Blu Fairy Co.,Ltd (99.98%) operates event management• Verywell Co.,Ltd (99.98%) operates event management• ;CCM�%Q��.VF��QRGTCVGU�GXGPV�OCPCIGOGPV• D Media and Production Co.,Ltd (99.99%) operates event management

MEDIA REVOLUTIONIST

Annual Report 2015


Media Business Music Business Event Management Business

RS PCL.

99.99% Starz (Thailand) Co.,Ltd.

99.99% RS Television Co.,Ltd.

RS PCL.

99.99% Coolism Co.,Ltd

RS PCL.

99.99% Thai Copyright Collection Co.,Ltd.

RS PCL.


99.99% Poema Co.,Ltd.

99.98% Blue Fairy Co.,Ltd.

99.98% Verywell Co.,Ltd.

99.99% Aladdin House Co.,Ltd.

��;CCM�%Q��.VF�

99.99% D Media & Production Co.,Ltd.

RS PCL.


83.33% RS International Broadcasting and Sport Co.,Ltd.

TV Radio Sport

4GOCTM��• % show is shareholding percentage of RS Public Company Limited

• Temporality suspended subsidiaries contain R.S.Sportmaster Co.,Ltd.

• Closed down and be in the stage of accounting clearing process contain RS Film & Distribution Co.,Ltd.,

� #XCPV�%Q��.VF��$CPIMQM�1TICPK\CVKQP�%Q��.VF��CPF��4�5KCO�%Q��.VF�

Subsidiaries of the company that owned 83 percent Contain

• RS International Broadcasting and Sports Management Co.,Ltd operates television production and sports management

RS Group Structure

Notes to business

Starz (Thailand) Company Limited operates business for RS Public Company Limited as follow;1. Media Business

• TV Media - Sun Channel and Pleon TV • Sport – Satellite TV receiver box named Sunbox

2. Event Management Business such as D2B Encore Concert 2015, Channel 8 Pob Peun, Pleon Krung Concert, etc.

4Business Descriptions

MEDIA REVOLUTIONIST

Annual Report 2015

Business Descriptions At present, RS Group has 3 main core businesses which are the Music Distribution Business, Event Management Business and Media Business.

Revenue Structure

Type of Revenue

2013 2014 2015

Amount(Million Baht)

share in total revenue

(%)



(%)



(%)

Media Business 1,986.3 57% 3,356.8 78% 2,246.1 60%

Music Distribution Business 777.2 22% 457.8 11% 375.0 10%

Event Management Business 692.6 20% 458.5 10% 796.0 21%

Revenue from Other Business 5.5 1% 33.3 1% 311.6 9%

Total Revenues 3,461.5 100% 4,306.5 100% 3,728.7 100%

Media Business RS media business consists of 2 major media i.e. TV, and Radio

TV Media Business

RS Public Company Limited operates Channel 8 Digital TV and 3 satellite television channels i.e. Channel 2, Sabaidee TV and YOU Channel, which have different concepts and target groups as follow:

Channel 8

Channel 8 is operated under the concept of “Your Friend Everywhere, TV for Everyone” YJKEJ�RTGUGPVU�KVU�YQTMU�VQ�UGTXG�FGOCPFU�HQT�CNN�CIG�CPF�IGPFGT�ITQWRU�QH�CWFKGPEGU�by producing and creating all forms of entertainment varieties. The laid out concept is free television channels which consists of variety of programs with its strength during the super RTKOG�VKOG�RGTKQF�HQT�PGY�VGNGXKUKQP�FTCOC�YKVJ�KVU�ÌTUV�TWP��+P��%JCPPGN��JCU��PGY�ÌTUV�TWP�FTCOCU�K�G��Á9CGP�6JQPI�.GWPIÂ��Á/CG�.GWM�-GTF�&CKÂ��Á.K�-CG�/WF�5CPIÂ��Á2NGTPI�2CKÂ��Á-JWPI�;KPI�0QM�6CO�0KGDÂ��Á%JCQ�5CQ�%JCRCQMKLÂ��Á&QM�5QTP�%JQQÂ��Á5WF�Tae Jai Ja Kwai Kwar”, “Mong Kud Ritsaya” and “Suparbburut Satan”.

Moreover, there are many programs in various varieties such as the sport program Á��/CZ�/WC[�6JCKÂ�Á/WC[�6JCK�6CF�%JGWMÂ�Á*$1�$QZKPIÂ�Á7(%�/WC[�-TQPI��.GWOÂ�� VJG�PGYU�RTQITCO�Á�-WKMJCQ��Â�Á-JCQ�;GP��Â��VJG�GPVGTVCKPOGPV�PGYU�RTQITCOU�Á$WPVJQGPI��Â��VJG�VCNM�UJQY�RTQITCO�Á2CMRQPIÂ�Á'TM�5JQYÂ��VJG�UKPIKPI�EQPVGUV�UJQY�RTQITCO�Á5CGPIUCYCP�2KEJKVHWPÂ�� VJG�ICOG�UJQY� Á6JG� +PÌPKV[Â� CPF� XCTKQWU� EQPEGTVU� RTQITCO�KPENWFKPI�OCP[�HQTGKIP�CPF�FQOGUVKE�ÌNOU�VJCV�CTG�DGKPI�EKTEWNCVGF�KP��JQWT�DTQCFECUVKPI��New dramas and these programs have generated interesting trends among audiences CPF�CFXGTVKUKPI�CIGPEKGU�YKVJKP�C�XGT[�UJQTV�VKOG�YJKEJ�CNYC[U�TGÍGEVU�%JCPPGN��¿U�TCVKPI�as the number 4 nationwide free tv channel from AGB Nielsen Media Research.

21Media Research

The satellite television Channel 2 under the concept “Channel2 Full entertainment” presenting in-depth, in-time, and intense news, in order the strengthen the channel. /CP[�PGYU�RTQITCOOGU�JCXG�DGGP�FGXGNQRGF��UWEJ�CU�DTGCMKPI�PGYU��VTGPFKPI�PGYU��current news, and in-depth analysis. Entertainment news will be aired four times a day – Channel 2 Entertainment Morning/Noon/Afternoon/Night, providing the latest updates in the entertainment industry. Saucy variety shows are another highlight of the channel, UWEJ�CU�,WF�&WGF��2GTF�2QPI��5QF�/CK�6JCKNCPF��5JQY�6CM�(QPI��CPF�QVJGTU��6Q�MGGR�up with its “Full Entertainment” concept, Channel 2 is also introducing successful RS FTCOCU�VQ�DG�CKTGF�VJTGG�VKOGU�C�FC[�UWEJ�CU�Á/KC�6JWGPÂ�Á6JQPI�2TCMCK�5CGFÂ��2TQOQVKPI�media that cover targeted audience group and including supports from all allies who give good response.

Sabaidee TV

Sabaidee TV channel focuses on the target group with appreciation of Thai songs not only limited to country music but also included songs for life, hit songs in VJG�RCUV�� TCTG�VQ�JGCT� QNF� UQPIU�� UVTKPI�OWUKE�� KPENWFKPI�WPFGTITQWPF�OWUKE�OCTMGV� YJGTG�C�OWUKE�OCMGT�KU�IKXGP�CP�QRRQTVWPKV[�VQ�RTQOQVG�VJGKT�YQTM��WPFGT�VJG�UNQICP�“various Thai style music, happy watching for the whole family”.

The strengths of Sabaidee TV channel of which its contents are produced and managed under R Siam record label is capitalized on to present a wide variety of programs, both in depth and in width, by drawing and utilizing the full potential of artists in our care CNQPI�YKVJ�VJG�UGNGEVKQP�QH�CP�GOEGG�YKVJ�WPKSWG�KFGPVKV[��YGNN�TGOGODGTGF�CPF�NKMGF�D[�RGQRNG�QH�OCP[�FKHHGTGPV�ITQWRU��#NN�QH�VJG�CHQTGUCKF�EJCTCEVGTKUVKEU�OCMG�5CDCKFGG�TV a channel of pleasure people can watch all day where people can communicate all the time via SMS which will be shown on TV screen.

YOU Channel

YOU Channel is the channel with concept of “Channel of Thai music for all Thai” serving all gender and age group of audiences and listeners who love listening to music. Presentation is in the forms of music video or concert of various artists, entertainment in various forms, generating popularity trend and be a channel to promote artists from RS group.

Marketing and Competition

In 2015, the television media industry had a very important change. The National Broadcasting and Telecommunications Commission or NBTC announced the 24 licenses auction of the digital television. This created many new competitors and more intense competition than before to attract audiences and advertising budget. Channel 8 was considered a new player in the digital television but had experiences in the television media for a long time as it had been in the satellite television for over 5 years. Thus, the Company was able to produce quality programs to satisfy audiences.

Even though the birth of digital television in Thailand attracts interest in many business sectors whether from the audiences or advertising clients who invest their advertising budget into the digital television industry, at present, the main audiences, approximately 70% still watch their television channels through satellite television. Hence, the Company has realized the opportunity and importance of satellite television business. So Channel 2 and Sabaidee TV become the leader in the satellite television business of Thailand.

MEDIA REVOLUTIONIST

Annual Report 2015

Marketing1. Product Branding and Program Positioning

6JG�%QORCP[�ENGCTN[�UGV�VJG�OCTMGV�RQUKVKQP�QH�VJG�DWUKPGUU�KP�GCEJ�V[RG�QH�RTQITCO��6JG�EQOOWPKECVKQP�QH�CP�KOCIG�QH�VJG�%QORCP[�CPF�VJG�FGUKIP�QH�RTQITCOU�CTG�CKOGF�CV�TGURQPFKPI�VQ�URGEKÌE�PGGFU�QH�KPFKXKFWCN�VCTIGV�ITQWRU��D[�VCMKPI�KPVQ�EQPUKFGTCVKQP�VJG�RCVVGTP�QH�DGJCXKQTU�QH�XKGYGTU�KP�GCEJ�ITQWR�CPF�JQV�VTGPFU�YJKEJ�EQTTGURQPF�VQ�VJG�UVTCVGIKGU�QH�45�)TQWR�QH�EQORCPKGU�RQUUGUUKPI�UVTGPIVJ�CPF�JKIJ�EQORGVKVKXGPGUU�KP�VJG�OCTMGV��

2. Capitalization on the competitive strength of RS Group as a major element of production to obtain a top-quality programIn addition to clearly determine target viewers, the Company capitalizes on the competitive strength of our organization, KP�VJG�VGGP�OCTMGV�QH�NCTIG�UECNG�CPF�JKIJ�RWTEJCUKPI�RQYGT��KP�VJG�FGUKIP�CPF�RTQFWEVKQP�QH�YQTM�VQ�QDVCKP�VQR�SWCNKV[�programs, using talented artists/performers/singers/teen emcees in our care, our music and other contents as a major GNGOGPV�VQ�ETGCVG�YQTM��WRQP�EQODKPGF�YKVJ�VJG�UVTGPIVJ�QH�QWT�ETGY�OGODGTU�YJQ�CTG�JKIJN[�UMKNNGF�CPF�GZRGTKGPEGF�KP�VJG�RTQFWEVKQP�QH�68�RTQITCOU�CPF�XKFGQU��VQR�SWCNKV[�YQTM�KU�RTQFWEGF�CPF�ITGCV�HGGFDCEM�KU�CEJKGXGF�

3. Formulation of sale patterns to create maximum value for customersThe design of sale patterns of advertising media to respond to the needs of and create maximum value for customers KP�C�RCEMCIG�FGCN�K�G��VJG�UCNG�QH�NQQUG�URQV�CKTVKOG�KP�VCPFGO�YKVJ�OCTMGVKPI�CEVKXKVKGU�VQ�TGRGCV�CPF�ETGCVG�DTCPF�CYCTGPGUU�COQPI�EWUVQOGTU�D[�RNCEKPI�GORJCUKU�QP�VJG�ETGCVKQP�QH�OCTMGVKPI�CEVKXKVKGU�KP�C�%54�EQPEGRV�%QTRQTCVG�5QEKCN�4GURQPUKDKNKV[�� VQ� GPEQWTCIG�EQPUEKGPEG�CPF�RWDNKEK\G� MPQYNGFIG�CDQWV� VJG� UQEKCN� TGURQPUKDKNKV[� VQYCTFU�consumers, presented in a way that blends into with the program content and is able to communicate the properties QH�VJG�RTQFWEV�KP�CP�GHHGEVKXG�OCPPGT�VQ�OCMG�VJG�URGPFKPI�QH�CFXGTVKUKPI�DWFIGV�QH�EWUVQOGTU�OQUV�XCNWG�HQT�OQPG[�

4. Creation of overall quality to gain customer recognition6JG�%QORCP[�HQEWUGU�QP�VJG�ETGCVKQP�QH�QXGTCNN�SWCNKV[� KP�GXGT[�YQTM�WPKV� VQ�ICKP�EWUVQOGT�VTWUV�CPF�TGEQIPKVKQP��not only limited to production quality for customer satisfaction but also included before and after sale services such as the response to customer needs in a prompt and proper manner, listening to their problems and coming up with solutions for them.

5. Program development to meet the tastes of target viewersAn analysis of target viewer requirements is conducted on a regular basis from which the results are used to develop production style and technique in line with the requirements of target viewers and customers to steadily boost program ratings and sales.

6. Administrative and cost management#�UVTWEVWTG�JCU�DGGP�NCKF�VQ�IKXG�ÍGZKDKNKV[�KP�CFOKPKUVTCVKXG�CPF�EQUV�OCPCIGOGPV�D[�WUKPI�QWT�GORNQ[GGU�VQ�RTQFWEG�YQTM�QH�UQOG�RCTVU�CPF�JKTKPI�QWVUKFGTU�VQ�RTQFWEG�YQTM�QH�QVJGT�RCTVU�QWVUQWTEKPI��

Procurement of Products and Services

� #HVGT�VJG�DKTVJ�QH�FKIKVCN�VGNGXKUKQP��VJGTG�CTG�OCP[�PGY�RNC[GTU�KP�VJG�OCTMGV��VJWU��VWUUNG�HQT�SWCNKH[�CPF�MPQYNGFIGCDNG�RGTUQPU�CTG�KPVGPUG�CPF�WPCXQKFCDNG��*QYGXGT��VJG�%QORCP[�JCU�VJG�RTQVGEVKQP�CICKPUV�UWEJ�TKUM�D[�UKIPKPI�EQPVTCEVU�YKVJ�OCP[�RGTUQPPGN�UWEJ�CU�UETKRV�YTKVGTU��FKTGEVQTU��CPF�CTVKUVU��2GTUQPPGN�YJQ�YQTM�WR�HTQPV�CPF�KP�VJG�DCEMITQWPF�YKVJ�capabilities, experiences, and acceptable to the targeted audience group are selected. The up-front personnel are based QP�CTVKUVU�WPFGT�VJG�45�ITQWR�CPF�QVJGTU�EQOG�HTQO�UGNGEVGF�CTVKUVU��CPF�HTGGNCPEG�CTVKUVU��6JG�DCEMITQWPF�RGTUQPPGN�VJCV�EQXGT�ETGCVKXG�CPF�RTQFWEVKQP�EQPVTQN�YQTMU�KU�WPFGT�VJG�%QORCP[¿U�OCPCIGOGPV�VGCO��YJKNG�RTQFWEVKQP�RTQEGFWTG�KVUGNH�is partly under internal employees and partly under hiring from external production company.

23

Radio Station COOL Fahrenheit 93

Concessioner Navy Radio Station

On Air Date and Time 24 hours

Signal Coverage $CPIMQM�CPF�XKEKPKV[Program Concept 50 Minutes Music Freeze Your Mind

Target Audience 5VWFGPVU�CPF�YQTMKPI�RGQRNG�CIGF��[GCTU�QNF

Radio Station: COOL Fahrenheit 93 (F.M. 93.0 MHz)

COOL Fahrenheit 93 proceeds as per the Company’s policy in conducting the fully commercialized business of radio operation. Emphasize is still on maintaining its original popularity, and increasing its audience base. At present, it still maintains clear audience base, and popularity, and manages to receive the most popularity vote in each of the audience DCUG�HTQO�UWTXG[KPI�FCVC�QH�#)$�0KGNUGP�/GFKC�4GUGCTEJ��6JKU��TGUWNVU�KP�EQPÌFGPEG�KP�WUKPI�OGFKC�HQT�CFXGTVKUKPI�RWTRQUG�from the Company’s clients of advertising agencies, and products; owners.

Radio Station Theme

Radio Station: COOL Fahrenheit 93

� %QQN�(CJTGPJGKV��QHHGTU�GCU[�NKUVGPKPI�6JCK�UQPIU�YJKEJ�CTG�HCXQTGF�D[�VJGKT�CWFKGPEG��+V�KU�VJG�ÌTUV�TCFKQ�UVCVKQP��hosted by accepted professional PJs, that allows the audience to listen to voted songs for 50 minutes continuously with the concept “50 minutes music freeze your mind”. Activities that respond to the audience’s lifestyles and challenge VJG�YQTMKPI�ITQWR�NKUVGPGTU�CTG�CNUQ�RCTV�QH�VJG�RTQITCO��YJKEJ�GPJCPEGU�%QQN�(CJTGPJGKV��VQ�DGEQOG�PWODGT�QPG�TCFKQ�UVCVKQP�HQT�YQTMKPI�RGQRNG�D[�OWVWCN�EQPUGPV�CEEQTFKPI�VQ�#)$�0KGNUGP�/GFKC�4GUGCTEJ�RQNNU�� For these reasons, Cool Fahrenheit 93 has proved to be a popular radio station according to the AGB Nielsen Media Research popularity poll, more than 10 years frequencies from 2002 to present (data as of December 2015). It has DGGP�TCPMGF�CU�VJG�VQR�UVCVKQP�KP�VJG�'CU[�.KUVGPKPI�ECVGIQT[�HQT�YQTMKPI�ITQWR�CIGF�DGVYGGP��[GCTU�QNF�


At present, even though behavior of the listening group through radio seems to be lesser, but listeners’ volume through websites and smartphone is increasing. The number of listeners using websites and applications through COOL Fahrenheit 93 increases gradually which includes communication channels of the “follow up” and “view” channel through social media have increased gradually.

� /CTMGV�CPF�EQORGVKVKQP�QH�VJG�TCFKQ�OGFKC�DWUKPGUU�CTG�UVKNN�JKIJ�FWG�VQ�NKOKVGF�DWFIGV��%WUVQOGTU�RTGHGT�VQ�DW[�VJG�CFXGTVKUKPI�CKTVKOG�D[�VCMKPI�JKIJ�RQRWNCTKV[�CU�VJGKT�RTKQTKVKGU�YJKNG�RTKEKPI�UVTCVGI[�KU�KORQTVCPV�VQ�FGEKUKQP�KPVQ�DW[KPI�VJG�CFXGTVKUKPI�CKTVKOG�CU�EWUVQOGT�ECP�DW[�OQTG�CKTVKOG�QT�TGEGKXKPI�XCTKGV[�QH�CFXGTVKUKPI�RCEMCIG��6JGUG�FGRGPF�QP�selling strategy of each company to show how the customers’ budget is well spent or not.

Radio Business RS operates the F.M. 93.0 MHz. frequency under the brand name “Cool Fahrenheit 93” with the following details:

MEDIA REVOLUTIONIST

Annual Report 2015

Marketing Strategies

1. Value for Money strategy:�/CZKOK\KPI�DGPGÌV�YKVJ�VJG�GZKUVKPI�EWUVQOGT¿U�DWFIGV�HQT�CFXGTVKUKPI�KP�VJG�HQTO�QH�RCEMCIG�UCNGU�K�G��UGNNKPI�CFXGTVKUKPI�CKTVKOG�VQIGVJGT�YKVJ�VJG�OCTMGVKPI�CEVKXKV[�VJCV�TGUWNVU�KP�VCPIKDNG�UCNGU�RTQOQVKQP�CPF�worth the investment

2. Sales promotion strategy: Due to intense competition of the radio industry that need to differentiate the existing programs in order to add value to radio frequency, customers, and product that participates in the sales promotion, hence, selling advertising airtime is not enough to satisfy customer requirement and towards brand building, and the radio frequency. Then, the Company has improved its operating strategy by prioritizing towards the sales promotion activity into the synergy strategy by combining allies from many businesses into media partner for activity or concert that has the same customers’ target group. This also includes adding value to products by having coordinated sales promotion together between the program and listeners.

For all sales promotion strategies, the Company will emphasize quality activity that gives substance and entertainment � VQ�VJQUG�RCTVKEKRCPVU�CPF�YKNN�UGTXG�VJG�EWUVQOGT¿U�OCTMGVKPI�RQNKE[�GHÌEKGPVN[��ENGCTN[��CPF�FKTGEVN[�CV�VJG�VCTIGV�ITQWR�� The Company will result in generating revenue for customer from the sales promotion activity.

Moreover, the Company can use capability of its advertising and public relation channel to inform public about � VJG�CEVKXKV[�QH�KVU�TCFKQ�RTQITCO��CPF�CEVKXKV[�QH�KVU�EWUVQOGT�VQ�DG�CEEGRVGF�CPF�YKFGN[�MPQYP�KP�VJG�HQTO�QH�RWDNKE� relation news, and advertising in other media such as television, magazine, outdoor media, moving media, etc.

3. Advertising Plan Servicing Strategy: �6JG�%QORCP[¿U�VGCO�YJQ�JCU�DGGP�YQTMKPI�KP�VJG�TCFKQ�DWUKPGUU�HQT�C�NQPI�VKOG�YKVJ�GZRGTKGPEGU��MPQYNGFIG��CPF�IQQF�WPFGTUVCPFKPI�KP�VJG�TCFKQ�OGFKC�DWUKPGUU�ECP�CFXKUG�EWUVQOGT�YKVJ�VJG�OQUV�GHÌEKGPV�OGFKC�RNCPPKPI��#FXGTVKUKPI�CKTVKOG�QT�CFXGTVKUKPI�RCEMCIG�VJCV�KU�UWKVGF�VQ�EWUVQOGTU¿�QDLGEVKXG�CPF�NKUVGPGTU¿�target group is to be selected. The Company’s advertising plan has been created by using specially designed events in order to serve customers’ requirement and limitation on certain type of products. The synergy policy with allied trade partners is considered in the advertising plan with all supporting products to create motivation and good value for money by using the Company’s media.

Procurement of Product or Service

1. DJ and Production and Creative Personnel� 6JG�%QORCP[�JCU�UWEEGUUHWNN[�DTQWIJV�CDQWV�VJG�KPPQXCVKQP�VQ�VJG�TCFKQ�EKTENG�D[�GORNQ[KPI�VJG�PGY�OCTMGVKPI�UVTCVGI[��Á2,�/#4-'6+0)Â�CHVGT�VJG�CEEQORNKUJOGPVU�KP�VJG�RTQITCO�RTQFWEVKQP�QH��%QQN�(CJTGPJGKV�CPF�QVJGT�CHÌNKCVGF�TCFKQ�HTGSWGPEKGU�D[�OQXKPI�VJG�&,�GTC� KPVQ�VJG�2,�2TQITCO�,QEMG[��QPG��'CEJ�2,� KU�TGSWKTGF�VQ�GPJCPEG�QPG¿U�QYP�RQVGPVKCN�D[�RQUUGUUKPI�VJG�DCUKE�OCTMGVKPI�MPQYNGFIG�CPF�QRVKOCN�VGEJPQNQI[�WVKNK\CVKQP�KP�RCTVKEWNCT��2,U�CTG�VJG�MG[�factor contributing to the reputation of the radio station as they are responsible people who have a good understanding of VJG�OWUKE��CPF�VJG�CDKNKV[�VQ�EQOOWPKECVG�YKVJ�VJG�NKUVGPGTU��9KVJ�VTCKPKPI��VJG[�ECP�KORTQXG�VJGKT�MPQYNGFIG�QH�VGEJPQNQI[�in order to be able to handle state-of-the-art equipment and software. They host their programs in a style that meets VJG�VCUVG�QH�VJG�VCTIGV�NKUVGPGT��CPF�OC[�CNUQ�YQTM�GZVGTPCNN[�CU�RTQITCO�JQUVU�HQT�UCNGU�RTQOQVKQP�CEVKXKVKGU�2. Broadcasting System The Company uses a computer system for automatic broadcasting control which is the technology of international UVCPFCTFU� D[�YJKEJ� KVU� UQHVYCTG� KU� TGIWNCTN[� WRFCVGF� VQ� MGGR� WR�YKVJ� VJG� GXGT�EJCPIKPI� VTGPFU� CPF� CEJKGXG� VQR� broadcasting quality.

25Music Distribution RS music distribution business operates in the comprehensive nature in all processes, starting from artist selection, OWUKE�EQORQUKVKQP��RTQOQVKQP��UVTCVGI[�QP�OGFKC�CPF�OCTMGVKPI�RNCP��CTVKUV�OCPCIGOGPV��CPF�CFOKPKUVTCVKQP�QH�VJG�OWUKE�content in the form of artist, music format in the form digital content and distribution of musical disc. Details on the operating procedures are listed below: 1. RS Group employs a fully integrated business model managing all types of related business. As a company associated

YKVJ�C�PWODGT�QH�CTVKUVU��45�)TQWR�JCU�RTQFWEGF�C�XCTKGV[�QH�OWUKE�YKVJ�EQPVKPWQWU�TGNGCUGU�QPVQ�VJG�OCTMGV��6JG�VCTIGVGF�OCTMGV�CPF�OWUKE�IGPTG�KU�RTGUGPVGF�VQ�VJG�OWUKE�EQOOKVVGG�CPF�GCEJ�OWUKE�NCDGN�YQTMU�QP�GCEJ�CNDWO�KPFGRGPFGPVN[�WPVKN�VJG�OWUKE�CNDWO�KU�ÌPKUJGF��5WDUGSWGPVN[��VJG�OWUKE�RTQFWEVKQP�RTQEGUU�YKNN�DG�KPFGRGPFGPVN[�WPFGTVCMGP�D[�the teams in each music label. The public relations plan and promotion Products and Services Descriptions strategy will also be created by those teams to be combined with the plans of Media Management Division and Distribution &KXKUKQP��(KPCNN[��VJG�OWUKE�OCTMGVKPI�WPKV�YKNN�NC[�QWV�VJG�RTQOQVKQP�UVTCVGI[��EQPFWEV�VJG�RWDNKE�TGNCVKQP�ECORCKIP�CPF�EQQTFKPCVG�YKVJ�VJG�FKUVTKDWVQT�VQ�GPUWTG�VJG�CNKIPOGPV�QH�RTQFWEV¿U�SWCNKV[�CPF�OCTMGV¿U�RQRWNCTKV[��

2. It is RS Group’s policy to generate products in an appropriate quantity and of good quality. As a result, each album’s investment yields a satisfactory outcome.

3. 7VKNK\CVKQP�DGPGÌVU�VJTQWIJ�CNN�OGFKC�EJCPPGNU�HQT�DQVJ�(TGG�68�CPF�5CVGNNKVG�68��TCFKQ��RTKPVGF�OGFKC��KPVGTPGV�OGFKC�VJTQWIJ� VJG�%QORCP[�CPF� KVU� CHÌNKCVGF�EQORCP[¿U�YGDUKVGU� CPF� UQEKCN�OGFKC� EJCPPGNU� VQ� HCEKNKVCVG� GHÌEKGPE[�QH� VJG�RWDNKE�TGNCVKQPU�RTQITCOU��CPF�WVKNK\G�CNN�OGFKC�HQT�OCZKOWO�GHÌEKGPE[�

4. 'HÌEKGPV�FKUVTKDWVKQP�VTCPUHGTU�RTQFWEVU�VQ�GPF�EWUVQOGTU�VJQTQWIJN[�KP�DQVJ�HQTOU�QH�FKIKVCN�CPF�RJ[UKECN�EQPVGPVU�� Set up the management and follow up system for closely monitor the distribution channels.

5. 'HÌEKGPV�CPF�U[UVGOCVKE�OWUKE�EQR[TKIJV�OCPCIGOGPV�ETGCVGU�CFFGF�TGXGPWG�HQT�VJG�DWUKPGUU��6. The policy in opening opportunities to new group of artists, song writers, and new creative channel of songs in order

to develop and improve the quality of RS Group’s songs to be updated and covering the target groups at all time.

Music Distribution acquires most of its revenue from the following 3 sources:

1. 4GXGPWG�HTQO�OWUKE�RTQFWEVU�VJTQWIJ�&KIKVCN�%QPVGPV�KP�VJG�HQTOU�QH�&QYPNQCF��4KPIVQPG��4KPI�$CEM�6QPG��FQYPNQCFKPI�of full song through various channels such as iTunes, the www.rsonlinemusic.com website, or Wireless Application Protocol, and music listening in the form of on line streaming through “Deezer” system and YouTube. In year 2015, RS and Line start the new music listening platform called “Line Music” which has good response from music listeners.

2. Income from the sale of music products in forms of CD, MP3 in the forms of new and old hit singles in various formats, including VCDs and DVDs recording the concerts of Thai modern or country music artists through their new single albums, and/or their hits collection versions and so on.

3. 4GXGPWG�HTQO�EQR[TKIJV�EQNNGEVKQP�VJTQWIJ�45�CHÌNKCVGF�EQORCP[�ECNNGF�Á6JCK�%QR[TKIJV�%QNNGEVKQP�%Q��.VF�Â�QT�Á6%%Â�which collects all commercially viable copyright fees.

Affiliated Artist/Singer

RS Group has both String Music singers and Country Music singers. Each music style has both solo singers and groups whom have different styles. RS artists and singers include:

� 5VTKPI�/WUKE�UKPIGT�UWEJ�CU�((-��6KOGVJCK��0GMQ�,WOR��-CPQO�,GGP��9CKK��,CEM��#MG�5WTCEJGV��#NCTO��.CQ�.QCO��Klerm, Karamail, etc.

Country Music singer such as Baitoey R-siam, Ja R-siam, Kung Suthiraj, Kratae R-Siam, Jintara Poonlarp and BowVee, Beatle, Samosorn Chimi Group, etc.

MEDIA REVOLUTIONIST

Annual Report 2015


At present, consumers’ music listening behavior have changed from the past as the important variable comes from internet, and widely spreading usage of the smartphone. Then, consumers turn to listening more to the on-line music through various websites and the smartphone, and resulting in decreasing sales of the musical disc. The Company realizes more on the importance of distribution channel as variety of distribution channel is needed to penetrate thoroughly to consumers without the need for musical disc as before.

Moreover, the widely spreading problem on the copyrights infringement through the on-line or digital system due to advance in technology, enables consumers to easily and rapidly reach the illegal downloading websites. Music distribution business worldwide encounters yearly decreasing trend especially revenue on sales of the musical discs. Retail or small OWUKE�FKUVTKDWVKQP�DWUKPGUUGU�JCXG�FKHÌEWNV[�KP�QRGTCVKPI�VJGKT�DWUKPGUU�CPF�UQOG�JCXG�VQ�ENQUG�FQYP�VJGKT�DWUKPGUU�� Nevertheless, the Company has overhauled its music distribution business by grouping the string and country music together and manages under the same management. Raw materials are shared in order to reduce some expenses, YJKNG�UVQEM�QP�JCPF�QH�VJG�OWUKECN�FKUEU�KP�VJG�YCTGJQWUG�JCU�DGGP�TGFWEGF�KP�EQTTGURQPFGPV�YKVJ�VJG�CNVGTKPI�EJCPIG�KP�consumers’ behavior.

Event Management Event Management income derives from 2 parts i.e. 1. the organization of concerts and events for public and private sectors and 2. artist management.

The organization of concerts and events for public and private sectors

Shows and events are another business that is rapidly growing in Thailand because products, services and advertising agencies has turned to allocate more budget for below-the-line activities over the past years as a result of a rising cost of airtime for TV commercials compounded by a larger number of competitors selling products in the same category.

� 45�KU�URGEKCNK\GF�KP�QTICPK\KPI�EQPEGTVU�CPF�GXGPVU�VQ�HWNÌNN�OCTMGVKPI�RNCPU�QH�CIGPEKGU��HQT�VJG�RTQOQVKQP�QH�products and services, that have turned to invest in non-media or below-the-line activities in forms of shows and events, and a series of plans for the organization of entertainment activities that can obtain long-term positive effects on business will be presented.

The business of organizing concerts and events in Thailand can be divided into three main groups as follows:

1. Presentation and event organizers providing services on the organization of general events to promote products and services for customers.

2. .QECN� GXGPV�RTQOQVGTU�RTQXKFKPI� UGTXKEGU�QP� VJG�QTICPK\CVKQP�CPF�OCTMGVKPI�QH� UVCIG�RGTHQTOCPEGU�� UJQYU�CPF�concerts with their own investments and/or in cooperation with other local companies.

3. International event promoters providing services on the organization of shows and concerts as well as on the formulation QH�OCTMGVKPI�RNCPU�VJGTGQH��YKVJ�VJGKT�QYP�KPXGUVOGPVU�CPF�QT�KP�EQQRGTCVKQP�YKVJ�QVJGT�EQORCPKGU��D[�UGNGEVKPI�NKXG�RGTHQTOCPEG�RTQFWEVU�HQT�OCTMGVKPI�KP�VJG�EQWPVT[�

27 The competition for the organization of concerts and events in Thailand is rather high because there is a large number of enterprises at all scales, whether small, medium or large. However, on the plus side, this business has a high RTQURGEV�DGECWUG�OQUV�OCTMGVKPI�RNCPU�HQT�RTQFWEV�RTQOQVKQP�UGV�CUKFG�OQTG�DWFIGVU�GXGT[�[GCT�HQT�DGNQY�VJG�NKPG�CEVKXKVKGU�� Being a large-scale entertainment company gives RS an advantage over others in the organization of concerts CPF�GXGPVU�� VJCV� KU�DGECWUG�YG�JCXG� NQVU�QH�CTVKUVU�WPFGT�QWT�ECTG�CPF�YG�TWP� KPVGITCVGF�OGFKC�DWUKPGUU�QH�CNN�MKPFU�such as TV, radio and other media channel. These qualities can give assurance that concerts and events organized by VJG�%QORCP[�ECP�HWNÌNN�EWUVQOGT�PGGFU�

Artist Management

RS’s long-time engagement in the business of integrated entertainment results in loads of artists and actors/actresses under the care of the Company. These personnel are valuable assets who create value for the Company and be C�TGRTGUGPVCVKXG�QH�VJG�%QORCP[�KP�LQKPKPI�CEVKXKVKGU�YKVJ�QVJGT�QTICPK\CVKQPU��CPF�VCMKPI�LQDU�VQ�CRRGCT�KP�RWDNKE�GXGPVU�after their albums are released and promoted.

Artist management is an arrangement of all affairs to add value to artists, create jobs to boost income for artists in CFFKVKQP�VQ�VJG�NCWPEJ�QH�OWUKE�YQTM�QT�RGTHQTOCPEGU�CU�WUWCN�K�G��QTICPK\CVKQP�QH�EQPEGTVU�KPUKFG�CPF�QWVUKFG�VJG�EQWPVT[��appearance in public events for singing, fashion show performance, interview, sports playing, and so on, stage show RGTHQTOCPEG�KP�C�HGPEGF�CTGC�YKVJ�VJG�UCNG�QH�CFOKUUKQP�VKEMGVU��OCFG�VQ�QTFGT�RTQFWEVKQP�KP�CEEQTFCPEG�YKVJ�KPFKXKFWCN�customer requirements, and presentation show.


The Company employs both mass customization strategies and Customization Strategy as a major policy (depending on each category of product or service) by emphasizing the importance of direct customers as the main focus but never HQTIGVU�VQ�VCMG�ECTG�QH�EWUVQOGTU�KP�VJG�ITQWR�QH�CFXGTVKUKPI�CIGPEKGU��9KVJ�TGICTF�VQ�VJG�VGEJPKSWG�QH�YQTM�RTGUGPVCVKQP��VJG�%QORCP[�CKOU�VQ�OCMG�EWUVQOGTU�CYCTG�VJCV�CP[�YQTM�RTGUGPVGF�D[�VJG�%QORCP[�KU�C�OCTMGVKPI�VQQN�VQ�JGNR�KPFKXKFWCN�EWUVQOGTU�CEJKGXG�UWEEGUU�KP�HWNÌNNKPI�VJGKT�RTG�FGVGTOKPGF�OCTMGVKPI�QDLGEVKXGU�D[�DWKNFKPI�QP�VJG�RTKPEKRNG�QH�GPVGTVCKPOGPV�OCTMGVKPI�VQ�CRRTQCEJ�EQPUWOGTU�� 6JG�%QORCP[�TGHQTOCVU�VJG�OCPCIGOGPV�QH�RGTHQTOKPI�CTVKUVU�D[�CNNQYKPI�CTVKUVU�VQ�VCMG�LQDU�D[�VJGOUGNXGU�CV�VJG�UVCPFCTF�TGOWPGTCVKQP�TCVG�ÌZGF�D[�VJG�%QORCP[�CPF�VJQUG�CTVKUVU�JCXG�VQ�FGFWEV�CPF�UJCTG�C�RCTV�QH�TGXGPWGU��CV� C�URGEKÌGF�TCVG��VQ�VJG�%QORCP[��6JKU�PGY�HQTOCV�JGNRU�KPETGCUG�LQDU�CPF�DQQUVU�KPEQOG�HQT�CTVKUVU�CPF�EQPVTKDWVGU�VQ�ITGCVGT�ÍGZKDKNKV[�QH�CTVKUV�OCPCIGOGPV�

5Risk Factors

29Risk Factors� 45�)TQWR�JCU�GXCNWCVGF�VJG�TKUMU�VJCV�OKIJV�CHHGEV� KVU�%QORCPKGU�CPF�UWDUKFKCTKGU�VJCV�OC[�TGUWNV� KP� KORCEVU�toward its business operations as follows:

Risks from announcements on regulations from the Office of the National Broadcasting and Telecommunications Commission (NBTC)

The Company operates television business in the digital terrestrial television and the satellite television business. 6JG�VGNGXKUKQP�DWUKPGUU�KU�EQPUKFGTGF�CU�C�OCUU�EQOOWPKECVKQP�DWUKPGUU�VJCV�KU�XGT[�KPÍWGPVKCN�VQ�VJG�RGQRNG�CU�RGQRNG�can reach and receive information thoroughly more than any other mass media channels, hence, business operations of VJG�VGNGXKUKQP�DWUKPGUU�KU�GUUGPVKCNN[�QRGTCVGF�WPFGT�VJG�NCYU��1HÌEG�QH�VJG�0CVKQPCN�$TQCFECUVKPI�CPF�6GNGEQOOWPKECVKQPU�Commission (NBTC) is the Government agency that supervises television business operators in Thailand with its main duty in supervising, and issuing various regulations in order to control free and fair competition among television business operators YKVJ�GVJKECN�UVCPFCTFU��%QPUWOGTU�CTG�VQ�DG�RTQVGEVGF�QP�VJGKT�DGPGÌVU��CPF�PQV�VQ�DG�GZRNQKVGF�D[�DWUKPGUU�QRGTCVQTU�such as supervision on the content to have suitable quality with the target group, suitability rating on contents for children CPF�[QWVJ��CFXGTVKUKPI��GVE��#V�RTGUGPV��0$6%�UVKNN�OCMGU�TGIWNCT�PGY�CPPQWPEGOGPVU�KP�CEEQTFCPEG�YKVJ�KVU�RQNKE[��CPF�problem concerning business operators, hence, announcements from the NBTC still exist together with all the television business operators. Hence, all the announcements that will be issued to control the television business operations, will not be stable, and will require a period of time to realize any impact on business operations of the Company, and eventually TGÍGEV�TKUMU�QP�DWUKPGUU�QRGTCVKQPU�

Risks from intense competition in the television media business

Since the beginning of digital television broadcasting in the middle of 2014, the television industry has encountered KPVGPUG�EQORGVKVKQP�CU�GCEJ�EJCPPGN�QRGTCVQT�OCMGU�XCTKQWU�CFLWUVOGPVU�CPF�CFCRVCVKQPU��6JGUG� KPENWFG� VJG�QTKIKPCN�QRGTCVQTU�KP�VJG�CPCNQIWG�U[UVGO�VJCV�JCXG�VQ�RTQVGEV�VJGKT�TCPMKPIU��CPF�VJG�PGY�QRGTCVQTU�VJCV�JCXG�VQ�ÌIJV�HQT�OQUV�QH�VJG�TCVKPIU�CPF�CFXGTVKUKPI�DWFIGVU�KP�VJG�OCTMGV��/CP[�UVTCVGIKGU�JCXG�DGGP�WUGF�VQ�ICKP�RQRWNCT�TCVKPI�WUKPI�EQPVGPVU�CU�VJG�main important magnetism to attract audiences, especially during prime time that will have the most intense competition. 6JWU��CWFKGPEGU�YKNN�DGPGÌV�HTQO�XCTKGV[�QH�EJQKEGU��CPF�VJG�CFXGTVKUKPI�CIGPEKGU�YKNN�JCXG�OQTG�UGNGEVKQPU�QP�CFXGTVKUKPI�ENKGPVU��*GPEG��ÁTCVKPIÂ�CPF�ÁIQQF�XCNWG�HQT�OQPG[Â�YKNN�DG�ETKVGTKC�HQT�FGVGTOKPKPI�VJG�CFXGTVKUKPI�EJQKEGU��VJWU��OCMKPI�KV�OQTG�FKHÌEWNV�VQ�UGNN�VJG�CFXGTVKUKPI�VKOG� However, due to the facts that the Company has experiences in the producing of television programs business and in management of its own channel for a long time, having clear target audience group, strong contents with patterns VJCV�OCVEJ�VJG�VCUVGU�QH�VJG�VCTIGV�CWFKGPEG��RGTUQPPGN�CPF�YQTMKPI�ITQWR�YKVJ�SWCNKV[�CPF�GZRGTKGPEG��CU�YGNN�CU�VJG�QTICPK\CVKQP�QH�XCTKQWU�V[RGU�QH�VJG�OCTMGVKPI�RTQOQVKQP�CEVKXKVKGU�KP�QTFGT�VQ�EQPUVCPVN[�UVKOWNCVG�CWFKGPEGU��CPF�VQ�DG�MPQYP�KP�C�YKFGT�CTGC��CPF�VJWU��GXGPVWCNN[�RNCEG�VJG�%QORCP[¿U�VGNGXKUKQP�EJCPPGN�KP�C�JKIJ�TCPMKPI�RQUKVKQP�QH�VJG�#)$�0KGNUGP�/GFKC�4GUGCTEJ�VJG�YQTNFYKFG�CEEGRVGF�OCTMGV�UWTXG[�CPF�TGUGCTEJ�EQORCP[��6JGUG�YKNN�GPCDNG�VJG�%QORCP[�VJG�CDKNKV[�VQ�ECRVWTG�CPF�OCKPVCKP�OCTMGV�UJCTG�HTQO�EQORGVKVQTU�KP�VJG�KPFWUVT[�

MEDIA REVOLUTIONIST

Annual Report 2015

Risks from concessions renewal

Concession for Satellite Television Business

6JG�1HÌEG�QH�VJG�0CVKQPCN�$TQCFECUVKPI�CPF�6GNGEQOOWPKECVKQPU�%QOOKUUKQP�0$6%��JCU�OCFG�CPPQWPEGOGPVU�on the regulations and methods in giving permission for radio and television broadcasting in order to organize the satellite television, and cable television operators into its regulatory mechanisms. The NBTC will issue licenses to operators periodically in which the initial permits will have 1 year duration, and after that consideration will be made to issue licenses QH�PQ�OQTG�VJCP��[GCTU�CV�C�VKOG��0$6%�YKNN�VCMG�KPVQ�EQPUKFGTCVKQP��EQORNCKPVU�QP�XKQNCVKQP�QH�KPCRRTQRTKCVG�EQPVGPVU��QT�advertising that contravene with the law, or any actions that contrary or inconsistent with the regulations on consumers’ protection, including other new regulations that NBTC will introduce in future, as the basis to consider the issuing of the renewal licenses to each operator. The periodic issuing of licenses with a rather short operating time may limit business operations, manufacturing plans, and revenue generating of the Company, however, the Company realizes the importance QH�UVTKEVN[�EQORN[KPI�YKVJ�TWNGU�CPF�TGIWNCVKQPU�KP�QTFGT�VQ�ETGCVG�EQPÌFGPV�VJCV�EQPVKPWQWU�TGPGYCN�QH�NKEGPUG�QP�UCVGNNKVG�television will be granted.

Concession for Radio Business

Normally, the leasing period for the radio station’s broadcasting is about 2 years, if the leasing time has not been GZVGPFGF��KV�YKNN�TGUWNV�QP�KORCEVU�QP�VJG�DTQCFECUVKPI�EQPVKPWKV[�CPF�VJG�%QORCP[¿U�TGXGPWG��6JKU�YKNN�KPENWFG�TKUM�QP�CP[�changes in the contract conditions which may result in the inferior condition from original contract. Moreover, searching for the new radio broadcast’s airing time as replacement may result in losing business continuity, and in building similar popularity rating as the previous program, or may cause higher cost as well. However, the Company truly believes that due to its continuously producing good quality performances and receiving high popularity with constant listeners’ base group, including as an important business operator who abides with standard payment and strictly conforms to payment conditions on airing time as well as on building good relationship with the concession provider, the Company will receive some trust CPF��VJWU��TGFWEG�UQOG�TKUM�VJCV�OC[�JCRRGP�FWTKPI�EQPEGUUKQP�TGPGYCN��0GXGTVJGNGUU��VJG�%QORCP[�YKNN�EQPUKFGT�XCNWG�QH�VJG�EQPEGUUKQP�TGPGYCN�D[�EQORCTKPI�YKVJ�KPXGUVOGPV�EQUV��+H�VJG�EQPEGUUKQP�TGPGYCN�FQGU�PQV�DGPGÌEKCN�VQ�VJG�%QORCP[��investment on concession renewal may not be considered. In 2015, the company approved to renew the concession for 2 years and it will end in 2017.

Risks from copyright violation

During the past few years, the music industry received much impact from many types of copyright violation whether in the forms of pirated physical discs (CD,VCD,DVD,MP3), downloading music from unauthorized websites, using music EQPVGPVU�VQ�GCTP�TGXGPWGU�HTQO�QRGTCVQTU�QH�EQOOGTEKCN�UJQRU��TGUVCWTCPVU��CPF�MCTCQMG�UJQRU��CTTCPIGOGPV�QH�OCP[�activities and concerts including the using of contents for commercial purposes or for personal entertainment through online EJCPPGNU��6JGUG�EQR[TKIJV�XKQNCVKQP�CEVKXKVKGU�TGUWNV�KP�WPTGCNKUVKE�TGÍGEVKQP�QP�EQPUWOGT�FGOCPF�QH�VJG�VTWG�OWUKE�TGXGPWG� However, the Company realizes the importance of this problem and steps have been enforced to correct it by CNYC[U�TGXKGYKPI�VJG�PGY�DWUKPGUU�RNCP�VQ�CNNGXKCVG�VJG�RTQDNGO��6JKU�KU�VQ�ETGCVG�ÍGZKDKNKV[��UWKVCDKNKV[�CPF�WRFCVG�VJG�UKVWCVKQP�

31UWEJ�CU�CFLWUVOGPV�QH�VJG�KPVGTPCN�UVTWEVWTG�QH�HWPEVKQPCN�YQTM�KP�QTFGT�VQ�UGTXG�VJG�EJCPIKPI�YQTMÍQY��WUKPI�UCNG�UVTCVGI[�VQ�DG�KP�CEEQTFCPEG�YKVJ�RTGUGPV�EQPUWOGTU¿�DGJCXKQWT��FGXGNQROGPV�QH�VJG�KPVGTPCN�YQTMKPI�U[UVGO�VQ�UGTXG�YKVJ�XCTKQWU�GZKUVKPI�RNCVHQTOU�KP�VJG�RTGUGPV�OCTMGV�CPF�PGY�RNCVHQTOU�VJCV�YKNN�QEEWT�KP�HWVWTG��6JKU�CNUQ�KPENWFGU�JCXKPI�FGRCTVOGPV�that is especially responsible in protection and suppression of copyright violation, which receives cooperation and support from Government agencies in law enforcement against operators who are guilty in copyright violation. From the above OGPVKQPGF�OGCUWTGU��VJG�%QORCP[�GZRGEVU�VQ�UKIPKÌECPVN[�TGFWEG�VJG�KORCEV�QP�TKUM�QH�DGKPI�EQR[TKIJV�XKQNCVGF�

Risks from occasional huge marketing events

The Company has continuous plan to expand its business, and some acquired project may require a rather high KPXGUVOGPV�EQUV�YJKEJ�OC[�GPEQWPVGT�UQOG�TKUM�KH�TGXGPWG�OCPCIGOGPV�ECPPQV�DG�TGCEJ�CEEQTFKPI�VQ�RNCP��%CWUGU�OC[�derive from many factors such as from rapid change in technology, changes in consumers’ behavior, various changing VTGPFU��OQTG�KPVGPUKÌGF�EQORGVKVKXG�UKVWCVKQP�KP�VJG�KPFWUVT[�CU�YGNN�CU�EQPVTCEV�VGTOKPCVKQP��QT�VJG�QEEWTTGPEG�QH�CP[�GXGPV��VJCV�OCMG� KV� KORQUUKDNG� VQ� EQPVKPWG�� GVE��*QYGXGT�� VJG�%QORCP[�JCU� UVKRWNCVGF� VJG� UETGGPKPI�RTQEGUU�� GXCNWCVKPI� KVU�usefulness, and cost effectiveness prior to investment. Study on the project feasibility has to be conducted prior to signing CP[�EQPVTCEV�QT�CP[�QVJGT�DKPFKPI�EQPFKVKQP�D[�WUKPI�GZRGTVU�HTQO�TGNCVGF�ÌGNFU�VQ�LQKPVN[�EQPUKFGT�HQT�ECWVKQWUPGUU�CPF�conciseness of the project. Moreover, advanced planning and early preparation have to be conducted by the arranging of pre-sale from supporting sponsors when the project is still in its production process. Additionally, large project has to be CRRTQXGF�D[�VJG�%QORCP[¿U�$QCTF�QH�&KTGEVQTU�KP�QTFGT�VQ�TGFWEG�CP[�TKUM�VJCV�OC[�QEEWT�HTQO�VJG�KPXGUVOGPV�

6Property used in the business

33Property used in the business Property used in the business operations of the Company and subsidiaries company (Group RS) detailed as follows.

Land The Company and its subsidiaries have leased land from individuals outside the group, as detailed below.

Address Renter Contract term Rental fee/month(Million Baht)

431/2-5 Soi Ladphrao 15, Chompon, %JCVWEJCM��$CPIMQM

RS Public Company Limited 3 years(Aug 2014 – July 2017)

0.41

Equipments

Equipments used in the business of RS group. The details are as follows

Company Equipment and machinery OwnershipBook Value Year

2015(million Baht)

Obligation

1. RS Public Company Limited

Studio recording and Broadcast equipment. Owner 54.85 Nil

2. COOLISM Co.,Ltd. Recording Equipment Owner 3.08 Nil

Warehouse

Warehouse of the Company and its subsidiaries are as follows.

Address Renter Contract termRental fee and Central

Service fee / month(Million Baht)

1. 9/102 Phaholyothin Road,Klongluang, Pathumthani

RS Public Company Limited 1 Year (agreement expire on

Jan 2016)

0.20

2. Building B, Building 2BB9/46 Phaholyothin Road, Klongluang, Pathumthani

Starz Co.,Ltd. (Thailand) 6 months * 0.10

4GOCTM��#V�RTGUGPV�VJG�EQORCP[�TGPGYU�VJG�EQPVTCEV�VQ�VJG�RGTKQF�QH�,CPWCT[��VQ�/C[��

MEDIA REVOLUTIONIST

Annual Report 2015

Concession and Radio leases

The Company and its subsidiaries lease radio stations from government agencies and third parties. As follows:

Station Station Owner Contract term

1. F.M. 93.0 MHz * Navy Radio Station 1 Jan 2014 – 31 Dec 2015

2. F.M. 88.5 MHz Navy Radio Station 1 Jan 2014 – 31 Dec 2015

4GOCTM��#V�RTGUGPV�VJG�EQORCP[�TGPGYU�VJG�EQPVTCEV�VQ�VJG�RGTKQF�QH�,CPWCT[��VQ�&GEGODGT��

Broadcast transmission service agreement

The Company has entered into a Broadcast transmission service agreement. And other services are as follows:

Service Providers Contract term

1. Thai Public Broadcasting Service agreement expire on 16 Jun 2028

2. Thaicom Public Company Limited 1 Aug 2013 – 1 Jul 2023

3. TC Broadcasting Company Limited 25 Apr 2014 – 24 Apr 2017

4. Symphony Communication Public Company Limited 1 Apr 2015 – 31 Mar 2016

��+PVGTNKPM�%QOOWPKECVKQP�2WDNKE�%QORCP[�.KOKVGF 15 Jun 2015 – 31 Jul 2016

Digital TV License

� 6JG�%QORCP[¿U�UWDUKFKCTKGU�YQP�VJG�CWEVKQP�QH�&KIKVCN�68�NKEGPUG�KP�)GPGTCN�%CVGIQT[�YKVJ�UVCPFCTF�FGÌPKVKQP�type. The details are as follows:

Service Providers Contract term

The National Broadcasting and Telecommunications Commission (NBTC) 25 Apr 2014 - 24 Apr 2029

7Legal disputes

MEDIA REVOLUTIONIST

Annual Report 2015

� %QORCP[� CPF� VJG� UWDUKFKCTKGU� JCF� PQ� NGICN� FKURWVG� VJCV� UKIPKÌECPVN[� CHHGEVGF� VJG�%QORCP[¿U� DWUKPGUU� QT�posed negative effects on the Group’s assets of which its overall value, as at 31 December 2015, was higher than 5% of shareholders’ equity. The Company and the subsidiaries had no legal dispute arisen from an out-of-the-ordinary course of business of the Group either.

8General information and

other important information

MEDIA REVOLUTIONIST

Annual Report 2015

General information and other important information

General information

Name : RS Public Company Limited

Type of business : Current business of RS contains 3 main business. Such as Media Business including Television and Radio. Music Distribution and Event Management

Address � � �� %JGVEJQVKUCM�$WKNFKPI��5QK�.CFRJTCQ��.CFRJTCQ�4QCF�� %JQORJQP��%JCVWEJCM��$CPIMQM��6JCKNCPFRegistration No. : 0107546000016

Website : http://www.rs.co.th

Telephone : +66 (0) 2511 0555

Fax : +66 (0) 2511 2324

Registared Capital : Baht 1,013,591,880 including 1,013,591,880 ordinary shares at one Baht par value

Paid-up Capital : Baht 1,009,937,646 including 1,009,937,646 ordinary shares at one Baht par value

Share register : Thailand Securities Depository Co., Ltd. � � � � � ��4CVEJCFCRJKUGM�4QCF��&KPFCGPI��$CPIMQM��6JCKNCPF Telephone : +66 (0) 2009 9000 Fax : +66 (0) 2009 9991 Website : http://www.set.or.th/tsd

Auditor : PricewaterhouseCoopers ABAS 15th�(NQQT�$CPIMQM��%KV[�6QYGT�� 5QWVJ�5CVJQTP�4QCF��$CPIMQM��6JCKNCPF Telephone : +66 (0) 2344 1000 Fax : +66(0) 2286 5050 Website : http://www.pwc.com/th

Legal � �� .GICN�1HÌEG��45�2WDNKE�%QORCP[�.KOKVGF � � � � � %JGVEJQVKUCM�$WKNFKPI��5QK�.CFRJTCQ��.CFRJTCQ�4QCF�� %JQORJQP��%JCVWEJCM��$CPIMQM��6JCKNCPF Telephone : +66(0) 2511 0555 Fax : +66 (0) 2938 5622

39General Informations of the subsidiary that the company holds more than 10 percent.

Company Name Location Type of Business

Type of Share

Registered Capital (Baht)

Paid-up Capital (Baht)

Hold (%)

1. R.S. Television Co., Ltd 431/4 Soi Ladphrao 15, Ladphrao Road, %JQORJQP��%JCVWEJCM��$CPIMQM��Tel. +66 (0) 2511 0555Fax. +66 (0) 2511 2324

Television Business

Ordinary shares

200,000,000 200,000,000 99.99

2. Starz (Thailand) Co., Ltd (Formerly : K.master Co.,Ltd)

419/3 Soi Ladphrao 15, Ladphrao Road, %JQORJQP��%JCVWEJCM��$CPIMQM��Tel. +66 (0) 2902 1933 ,+66 (0) 2511 0555Fax. +66 (0) 2938 5621

Television Business / Event

Management / Beauty products

Ordinary shares

200,000,000 200,000,000 99.99

3. Coolism Co., Ltd 419/2 Soi Ladphrao 15, Ladphrao Road, %JQORJQP��%JCVWEJCM��$CPIMQM��Tel. +66 (0) 2511 0555Fax. +66 (0) 2938 5694

Radio Media

Business

Ordinary shares

25,000,000 25,000,000 99.99

��;CCM�%Q��.VF 431/3 Soi Ladphrao 15, Ladphrao Road, %JQORJQP��%JCVWEJCM��$CPIMQM��Tel. +66 (0) 2938 5630 - 2Fax. +66 (0) 2511 2324

Television Business / Event

Management

Ordinary shares

2,500,000 2,500,000 99.97

MEDIA REVOLUTIONIST

Annual Report 2015


Type of Share



Hold (%)

5. Thai Copyright Collection Co., Ltd

203/34-36 Soi Ladphrao 15, Ladphrao Road, %JQORJQP��%JCVWEJCM��$CPIMQM��Tel. +66 (0) 2938 8000 Fax. +66 (0) 2938 5583

Music Distribution

Ordinary shares

5,000,000 5,000,000 99.99

6. Poema Co., Ltd 203/34-36 Soi Ladphrao 15, Ladphrao Road, %JQORJQP��%JCVWEJCM��$CPIMQM��Tel. +66 (0) 2511 0555Fax. +66 (0) 2511 2324

Event Management

Ordinary shares

80,000,000 80,000,000 99.99

7. Blu Fairy Co., Ltd 419/3 Soi Ladphrao 15, Ladphrao Road, %JQORJQP��%JCVWEJCM��$CPIMQM��Tel. +66 (0) 2511 0555Fax. +66 (0) 2511 2324

Event Management

Ordinary shares

5,000,000 5,000,000 99.98

8. Verywell Co., Ltd 431/3 Soi Ladphrao 15, Ladphrao Road, %JQORJQP��%JCVWEJCM��$CPIMQM��Tel. +66 (0) 2511 0555Fax. +66 (0) 2511 2324

Event Management

Ordinary shares

4,000,000 4,000,000 99.98

41


Type of Share



Hold (%)

9. Aladdin House Co., Ltd

431/2 Soi Ladphrao 15, Ladphrao Road, %JQORJQP��%JCVWEJCM��$CPIMQM��Tel. +66 (0) 2511 0555Fax. +66 (0) 2511 2324

Event Management

Ordinary shares

5,000,000 5,000,000 99.99

10. D Media & Production Co., Ltd


Event Management

Ordinary shares

37,000,000 37,000,000 99.99

11. RS International Broadcasting and Sports Management Co., Ltd


Sport Ordinary shares

37,500,000 37,500,000 83.33

12. S-One Sports Co., Ltd

1706 Bangna - trad road, $CPIPC��$CPIMQM��Tel. +66 (0) 2511 0555

Sport Ordinary shares

15,000,000 15,000,000 99.99

MEDIA REVOLUTIONIST

Annual Report 2015


Type of Share



Hold (%)

13. RS In-store Media Co., Ltd

419/2 Soi Ladphrao 15,Ladphrao Road, %JQORJQP��%JCVWEJCM��$CPIMQM��Tel. +66 (0) 2511 0555Fax. +66 (0) 2511 2324

Modern Trade Media

Business

Ordinary shares

30,000,000 30,000,000 65.00

14. R Siam Co., Ltd 419/2 Soi Ladphrao 15, Ladphrao Road, %JQORJQP��%JCVWEJCM��$CPIMQM��Tel. +66 (0) 2511 0555Fax. +66 (0) 2511 2324

Music Distribution

Ordinary shares

1,000,000 1,000,000 99.93

15. RS Film & Distribution Co., Ltd

203/34-36 Soi Ladphrao 15, Ladphrao Road, %JQORJQP��%JCVWEJCM��$CPIMQM��Tel. +66 (0) 2511 0555

Event Management

Ordinary shares

5,000,000 5,000,000 99.99

16. Avant Co., Ltd 431/1 Soi Ladphrao 15, Ladphrao Road, %JQORJQP��%JCVWEJCM��$CPIMQM��Tel. +66 (0) 2511 0555Fax. +66 (0) 2511 2324

Event Management

Ordinary shares

4,000,000 4,000,000 99.98

43


Type of Share



Hold (%)

17. R.S. Sportmaster Co., Ltd


Event Management

Ordinary shares

4,500,000 4,500,000 75.98

��$CPIMQM�1TICPK\GT�Co., Ltd


Event Management

Ordinary shares

3,000,000 3,000,000 99.98

Others Information- Nil -

9Securities and

Shareholder Information

45Securities and Shareholder InformationRegistered Capital and Paid-up Capital As of December 31, 2015, the Company has the registered capital of Baht 1,013,591,880 including 1,013,591,880 ordinary shares at one Baht par value. The Company has the paid-up capital of Baht 1,009,937,646 including 1,009,937,646 ordinary shares at one Baht par value.

Shareholders� 6JG��OCLQT�UJCTGJQNFGTU�CU�CV�VJG�DQQM�ENQUWTG�FCVG�QP�&GEGODGT��CTG�CU�HQNNQYU��

No. List 0f Shareholders Shares Percentage

1 %JGVEJQVKUCM�)TQWR�� 398,467,900 39.45

2 8CPKEJXCTCMKL�)TQWR�� 121,000,000 11.98

3 Thai NVDR Company Limited 74,188,834 7.35

4 Mr. Santi Kovitchindachai 21,367,100 2.12

5 SIX SIS LTD 18,468,240 1.83

6 Mr. Chanyuth Laoraddecha 18,468,240 1.83

7 SCB Open-end Long Term Fund Plus 12,846,800 1.27

8 K Flexible Equity Fund 11,473,000 1.14

9 /U��%JQOMCOQN�2WORJCPOWCPI 11,400,000 1.13

10 /T��5KTKUCM�5QPUQRJQP 9,721,100 0.96

Remark ��%JGVEJQVKUCM�)TQWR�UWEJ�CU1. /T��5WTCEJCK�%JGVEJQVKUCM�JQNFU��UJCTGU��2. /T��5WYCV�%JGVEJQVKUCM�JQNFU��UJCTGU��3. /T��%JGV�%JGVEJQVKUCM�JQNFU��UJCTGU��4. /T��%JQV�%JGVEJQVKUCM�JQNFU��UJCTGU��

�� 8CPKEJXCTCMKL�)TQWR�UWEJ�CU�1. /T��5QTCV�8CPKEJXCTCMKL�JQNFU��UJCTGU��2. /T��;QVJKP�8CPKEJXCTCMKL�JQNFU��UJCTGU��

� .KUV� QH�OCLQT� UJCTGJQNFGTU�YJQ�� CEEQTFKPI� VQ� VJGKT� EQPFWEVU��YGTG� CDNG� VQ� CUUGTV� VJGKT� KPÍWGPEGU� VQYCTFU� the management policy and operation procedure of the company with ulterior motives (Shareholding groups or shareholders who owned over 10% and holding position as the company’s director or sending representative as the company’s director).

Dividend payment policy� 6JG�EQORCP[�CPF�KVU�UWDUKFKCTKGU�YKNN�RC[�C�FKXKFGPF�PQV�NGUU�VJCP��RGT�EGPV�QH�PGV�RTQÌV�CHVGT�VCZ�CPF�NGICN�reserve. However, the Board of Directors may consider and decide not to follow this policy, or adjust it in order to maximize VJG�DGPGÌV�VQ�VJG�UJCTGJQNFGTU�

Management Structure0

47Management Structure

Corporate Client Management

Finance & AccountingHuman Resource and Administration Television.GICN�1HÌEG

Information TechnologyCorporate

Communication Radio

Broadcast Business Music DistributionEvent Management

Audit Committee

Internal Audit

Board of Directors

Executive Board

CEO

Nomination and Remuneration Committee

Corporate Governance Committee

Risk Management Committee

Human Development Committee

4GOCTMU��+P�VJG�ECUG�QH�%QORCP[�KU�PQV�QYPGF��UWDUKFKCT[��6JG�TGOCKPKPI�RTKOCT[�UJCTGJQNFGTU�CTG�PQV�C�EQPPGEVGF�RGTUQP�QH�45�2WDNKE�%QORCP[�.KOKVGF�

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Annual Report 2015

RS Group Structure

Media Business

TV

RS PCL RS PCLRS PCL RS PCL

99.98% Blue Fairy Co.,Ltd

RS PCL

99.99% Starz (Thailand) Co.,Ltd



99.99% R.S. Television Co.,Ltd

83.33% RS International

Broadcasting and Sport Co.,Ltd

99.99% Coolism Co.,Ltd

99.98% Very Well Co.,Ltd

��;CCM�%Q��.VF�

99.99% Thai Copyright Collection

99.99% Poema Co.,Ltd

99.99% D Media & Production Co.,Ltd

Radio Sport

Board of Directors

Music Business Event Management Business

4GOCTM• % show is shareholding percentage of RS Public Company Limited

• Temporality suspended subsidiaries contain R.S.Sportmaster Co.,Ltd.

• Closed down and be in the stage of accounting clearing process contain RS Film & Distribution � %Q��.VF��#XCPV�%Q��.VF��$CPIMQM�1TICPK\CVKQP�%Q��.VF��CPF��4�5KCO�%Q��.VF�

99.99% Aladdin House Co.,Ltd

49 Management structure of the company consists of 7 set of committees and subcommittees including: Board of &KTGEVQTU��#WFKV�%QOOKVVGG��0QOKPCVKQP�CPF�4GOWPGTCVKQP�%QOOKVVGG��'ZGEWVKXG�%QOOKVVGG��4KUM�/CPCIGOGPV�%QOOKVVGG��Good Corporate Governance Committee and Human Development Committee. Details are as follows:

Board of Directors� #U�CV�&GEGODGT��6JG�$QCTF�QH�&KTGEVQTU�EQPUKUVU�QH�VJG�HQNNQYKPI�SWCNKÌGF�RGTUQPU�

��/T�5WTCEJCK��%JGVEJQVKUCM�� Chairman

��/TU��2QTPRCP�6GEJCTWPIEJCKMWN� &KTGEVQT��'ZGEWVKXG�%QOOKVVGG��4KUM�/CPCIGOGPV�%QOOKVVGG�%JCKTOCP�Good Corporate Governance Committee Chairman, Human Development Committee Chairman and Company Secretary

3. Mr. Darm Nana &KTGEVQT��'ZGEWVKXG�%QOOKVVGG��4KUM�/CPCIGOGPV�%QOOKVVGG�� Good Corporate Governance Committee

4. Mr. Danaisidh Peslapunt Director

5. Mr. Soopachai Nillawan Director

��/T��5QTCV��8CPKEJXCTCMKL Director

7. Mr. Phisit Dachanabhirom Independent Director, Audit Committee Chairman Nomination and Remuneration Committee Chairman

8. General Pairoj Panichsamai Independent Director and Audit Committee, Nomination and Remuneration Committee

9. Associate Professor Witaya ��&CPVJCOTQPIMWN

Independent Director and Audit Committee,Nomination and Remuneration Committee

4GOCTM1. /T�5QQRCEJCK�0KNNCYCP�TGRNCEGF�/T��5WVVJKUCM�2TCUCVMCTWMCTP�KP�VJG�RQUKVKQP�QH�&KTGEVQT�QP�0QXGODGT��2. #UUQEKCVG�2TQHGUUQT�9KVC[C�&CPVJCOTQPIMWN�TGUKIPGF�HTQO�VJG�RQUKVKQP�QH�+PFGRGPFGPV�&KTGEVQT�QP�,CPWCT[��CPF��/TU�9CPUWFC�

Thanasaranart will be replaced with the approval of the Board of Directors Meeting No. 5/2015 held on November16, 2015.

Definition of Independent Directors

Independent Directors�CTG�FGÌPGF�CU�GZVGTPCN�FKTGEVQT��PQV�KPXQNXKPI�KP�'ZGEWVKXGU��EQORCP[�UVCHH��'ZGEWVKXG�&KTGEVQT�or authorized signatory director, and be independent from major shareholders, Executives and related parties. In addition, +PFGRGPFGPV�&KTGEVQTU�CTG�CDNG�VQ�EQPUKFGT�GSWKVCDNG�VTGCVOGPV�VQ�UJCTGJQNFGTU�CPF�VQ�RTGGORV�CP[�RQUUKDNG�EQPÍKEV�QH�KPVGTGUV�DGVYGGP�VJG�EQORCP[�CPF�TGNCVGF�RCTVKGU��+PFGRGPFGPV�&KTGEVQTU�UJCNN�RQUUGUU�VJG�SWCNKÌECVKQPU�CU�HQNNQYU��

1. Hold shares not exceeding 0.5% of the total number of shares entitled to voting rights in the Company, the parent EQORCP[��VJG�UWDUKFKCT[�EQORCPKGU��VJG�CUUQEKCVGF�EQORCPKGU�QT�CP[�EQTRQTCVKQPU�VJCV�OC[�ECWUG�C�EQPÍKEV�of interest, which shall be inclusive of the shares held his/her related parties*.

2. He/she has been neither Executive directors** nor been an employee/staff member/advisor getting salary paid, both in present time and two years before the appointment, of/by the Company, the subsidiary companies, VJG�CUUQEKCVGF�EQORCPKGU��VJG�CHÌNKCVGF�EQORCPKGU��QT�CP[�EQTRQTCVKQPU�VJCV�OC[�ECWUG�C�EQPÍKEV�QH�KPVGTGUV�

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Annual Report 2015

3. No relationship by blood or legal registration as parent, spouse, sibling, son/daughter and/or son/daughter in-law QH�CP�GZGEWVKXG�QHÌEGT�QT�C�OCLQT�UJCTGJQNFGT�YKVJ�EQPVTQNNKPI�RQYGT��QT�C�ECPFKFCVG�YJQ�YKNN�DG�PQOKPCVGF�CU� an executive or a person in charge of the operations of the Company or the subsidiary companies.

4. Business relations can be divided as follows:

a. Relationship types

• Relationship between professional service providers and users

• (GCVWTGU��#WFKVQTU��QVJGT�RTQHGUUKQPCN�UGTXKEG�RTQXKFGTU�UWEJ�CU� NGICN�EQPUWNVCPVU�� ÌPCPEKCN�advisors, property appraisers, etc.

• 5KIPKÌECPV�NGXGNU�VJCV�CTG�ECVGIQTK\GF�PQP�KPFGRGPFGPEG�o Auditors: be prohibited in all cases

o Other professional service providers: Transaction value exceeds Baht 2 million a year.

• 6TCFG�$WUKPGUU�4GNCVKQPU� CRRN[� VJG� UKOKNCT� IWKFGNKPGU� VQ� VJG�5VQEM�'ZEJCPIG¿U� TGSWKTGOGPVU�regarding related party transactions:

• Features: Business transactions in all types including normal transactions, real property leases/QWV�NGCUGU��CUUGV�UGTXKEG�TGNCVGF�VTCPUCEVKQPU��CPF�ÌPCPEKCN�CUUKUVCPEG�ITCPVU�QT�TGEGKRVU�

• 5KIPKÌECPV�NGXGNU�VJCV�CTG�ECVGIQTK\GF�PQP�KPFGRGPFGPEG��6TCPUCEVKQP�XCNWG�KU�Ű�$CJV��OKNNKQP�QT�Ű��QH�VJG�%QORCP[¿U�06#�PGV�VCPIKDNG�CUUGVU��YJKEJGXGT�KU�NQYGT��9JKNG�EQPUKFGTKPI� a value in each time of transaction, the total value of previous transactions over the past 6 months shall be inclusive.

b. The same relationship as Type (a) with corporations that are categorized non-independence such as major shareholders, directors (except independent/audit directors) and executives or partners of those corporations.

c. Prohibited period for no relationship in both types (a) and (b): In present time and two years before the appointment.

d. Exemptions: In a necessary and reasonable case which does not happen frequently or constantly, CP�KPFGRGPFGPV�CWFKV�FKTGEVQT�OC[�DGCT�C�TGNCVKQPUJKR�DG[QPF�VJG�UKIPKÌECPV�NGXGNU��CU�UGV�QWV�CDQXG��FWTKPI�JKU�QT�JGT�VGTO�KP�QHÌEG��RTQXKFGF�VJCV�C�RTKQT�CPF�WPCPKOQWU�CRRTQXCN�HTQO�VJG�DQCTF�QH�VJG�%QORCP[�KU�obtained. Furthermore, the board of the Company must provide the disclosure of information regarding VJG�CHQTGUCKF�TGNCVKQPUJKR�KP�C�TGIKUVTCVKQP�UVCVGOGPV�HQT�C�RWDNKE�QHHGTKPI�QT�UGEWTKVKGU�RNCEGOGPV�ÌNKPI�form), an annual information disclosure (Form 56-1) and an annual report (Form 56-2). If that independent/audit director is nominated for another term, the board of the Company shall provide a description of the said relationship in the notice of the shareholders’ meeting on an agendum for the election of director.

5. Be not appointed as a representative of any board members or major shareholders of the company, as well as being not appointed as a representative of other shareholders who bear relationship with major shareholders of the Company.

6. 0Q�TGUVTKEVKQPU�VJCV�OCMG�JKO�JGT�WPCDNG�VQ�HTGGN[�GZRTGUU�JKU�JGT�QRKPKQPU�7. #P� KPFGRGPFGPV�FKTGEVQT��YKVJ� VJG�EQORNGVG�SWCNKÌECVKQPU��CU�UVCVGF� KP�ENCWUGU��OC[�DG�FGUKIPCVGF�CPF�

CWVJQTK\GF�D[�VJG�DQCTF�QH�VJG�%QORCP[�VQ�OCMG�C�FGEKUKQP�TGICTFKPI�VJG�QRGTCVKQPU�QH�VJG�%QORCP[��VJG�RCTGPV�EQORCP[��VJG�UWDUKFKCT[�EQORCPKGU��VJG�CUUQEKCVGF�EQORCPKGU��VJG�CHÌNKCVGF�EQORCPKGU�CPF�QT�QVJGT�EQTRQTCVKQPU�VJCV�OC[�ECWUG�C�EQPÍKEV�QH�KPVGTGUV��YJKEJ�UWEJ�FGEKUKQP�ECP�DG�EQNNGEVKXGN[�OCFG�EQNNGEVKXG�FGEKUKQP��

51� +H�CP�KPFGRGPFGPV�FKTGEVQT�QH�VJG�%QORCP[�CNUQ�JQNFU�QHÌEG�CU�CP�KPFGRGPFGPV�FKTGEVQT�HQT�VJG�RCTGPV�EQORCP[��VJG�UWDUKFKCT[�EQORCPKGU�CPF�QT�VJG�CHÌNKCVGF�EQORCPKGU��VJG�DQCTF�QH�VJG�%QORCP[�UJCNN�RTQXKFG�VJG�FKUENQUWTG�QH�UWEJ�KPHQTOCVKQP�CU�YGNN�CU�VJG�FKUENQUWTG�QH�QXGTCNN�TGOWPGTCVKQP�VJCV�EGTVCKP�KPFGRGPFGPV�FKTGEVQT�IGVU�RCKF��KP�VJG�ÌNKPI�HQTO��Form 56-1 and Form 56-2 respectively.

Notes

* Related parties mean persons under Section 258 of Securities and Exchange Act. ��'ZGEWVKXG�FKTGEVQTU�OGCP�RGTUQPU�YJQ�KPXQNXG�KP�VJG�OCPCIGOGPV�QH�VJG�%QORCP[��JQNF�QHÌEG�CPF�CTG�KP�EJCTIG�QH�VJG�%QORCP[�CU�CP�GZGEWVKXG��CPF�CTG�CWVJQTK\GF�UKIPCVQTKGU�VQ�GZGEWVG�C�DKPFKPI�FQEWOGPV�QP�DGJCNH�QH�VJG�%QORCP[��GZEGRV�C�URGEKÌGF�RGTUQP�KP�CP[�transaction already been approved by the Board to sign a binding document jointly with other director(s).

��#HÌNKCVGF�EQORCPKGU�OGCP�UWDUKFKCTKGU�QH�VYQ�CPF�WR�JCXKPI�VJG�UCOG�RCTGPV�EQORCP[�

Directors with Authority to Sign for the Company

�� &KTGEVQTU� CWVJQTK\GF� VQ� UKIP� HQT� VJG� EQORCP[� CTG�/T�� 5WTCEJCK� %JGVEJQVKUCM��/T�� &CPCKUKFJ� 2GUNCRWPV�� /TU��2QTPRCP�6GEJCTWPIEJCKMWN��/T��&CTO�0CPC�CPF�/T��5QQRCEJCK�0KNNCYCP��6YQ�QH�CDQXG�FKTGEVQTU�ECP�LQKPVN[�UKIP�CPF�CHÌZ�VJG�EQORCP[�UGCN��

Roles of Board of Directors

The Extraordinary General Meeting of Shareholders No. 1/2003 held on January 13, 2003 had the resolution to determine the scope of Board of Directors’ authority in that Board of Directors is authorized to commit any acts necessary for or related to the normal business operation of the company. The Board of Directors is in charged with overseeing the company’s operations to be in compliance with the country’s laws and regulations as well as the policies and resolutions QH�UJCTGJQNFGTU¿�OGGVKPIU��6JG�$QCTF�QH�&KTGEVQTU�ECP�CRRQKPV� VJG�EQOOKVVGG�QT�CUUKIP�CP[�QVJGT�RGTUQPU�VQ�VCMG�CP[�or several actions under the control of the Board of Directors except for the actions stated below. Those actions can be performed after receiving the approval from the shareholders’ meeting. In cases where the committee or any person has C�EQPÍKEV�QH�KPVGTGUV�YKVJ�VJG�EQORCP[�QT�KVU�UWDUKFKCTKGU��VJG�EQOOKVVGG�KPXQNXGF�KP�VJCV�EQPÍKEV�OC[�PQV�XQVG�QP�VJCV�ECUG�� (A) Any case that the laws mention must be in compliance with the resolution of the shareholders’ meeting.

� $��2GTHQTOKPI�ECUGU�YJGTG�VJG�EQOOKVVGG�ICKPU�VJG�KPVGTGUV�QT�YJGTG�VJG�NCYU�CPF�TGIWNCVKQPU�VJG�5VQEM�'ZEJCPIG� of Thailand are mentioned must be approved by the shareholders’ meeting.

The following cases must be approved by the Board of Directors’ meeting and the shareholders’ meeting with a voting score of three-fourths of the number of shareholders attending the meeting and voting:

(A) Trading or transferring the company’s businesses or an important part of the business.

(B) Acquiring or receiving transferred business from other companies or private entities.

� %��/CMKPI��TGEVKH[KPI�QT�VGTOKPCVKPI�VJG�TGPVKPI�EQPVTCEVU�HQT�VJG�GPVKTG�DWUKPGUU�QH�VJG�EQORCP[�QT�CP�KORQTVCPV� section of it. Appointing any person to run the company’s business or form a merger with any person for � � VJG�RWTRQUG�QH�RTQÌV�CPF�NQUU�UJCTKPI�� (D) Amending the Articles of Association or Memorandum of Association.

(E) Increasing or reducing capital, issuing debentures, forming mergers or closing the company.

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Annual Report 2015

� (��#P[�CEVKQPU�OGPVKQPGF�KP�VJG�5GEWTKVKGU�#EV�QT�CPPQWPEGOGPVU��D[�VJG�5VQEM�'ZEJCPIG�QH�6JCKNCPF�TGSWKTKPI�the approval of the shareholders’ meeting, such as the acquisition or disposal of assets of the listed company or any related items.

Responsibilities and the scope of Board of Directors’ authority of the RS Public Company Limited comprise of the following topics:

1. Consider and approve vision and mission of the Company’s group of companies

2. Ensure that implementation of all operations are in accordance with good corporate governance and code of conduct manual of the Company’s group of companies.

3. Approve, and/or agree with the policy, plan and annual budget, and supervise that the management proceeds GHÌEKGPVN[�CPF�GHHGEVKXGN[�CEEQTFKPI�VQ�VJG�UVKRWNCVGF�RQNKE[�CPF�RNCP�

4. %QPUKFGT�CPF�CRRTQXG�UKIPKÌECPV�KVGOU�VJCV�CTG�UVKRWNCVGF�D[�NCY��TGIWNCVKQP��CPPQWPEGOGPV��RQNKE[��QTFGT��QT�authorized power of the Company.

The Company’s Board of Directors is responsible for consideration the list of new Directors who have been screened and presented by the Nomination and Remuneration Committee. The listed Directors must be ready to dedicate VJGKT�VKOGU��MPQYNGFIG��CPF�ECRCDKNKVKGU�HQT�VJG�EQORCP[��CPF�WPFGTUVCPF�VJG�FWVKGU�CPF�TGURQPUKDKNKVKGU�QH�&KTGEVQT�CU�YGNN��6JG�EQORCP[�JCU�KP�RNCEG�VJG�RTQEGFWTG�VQ�MGGR�PGY�FKTGEVQTU�KPHQTOGF�CDQWV�KVU�DWUKPGUU�CPF�QRGTCVKQP�HQT�VJGO�VQ�RQUUGUU�RTQHQWPF�MPQYNGFIG�CPF�WPFGTUVCPFKPI�KP�VJG�EQORCP[¿U�DWUKPGUU�� In addition, the Board of Directors conduct the annual assessment of their performance in line with the UGNH�CUUGUUOGPV�HQTO�VQ�KPURGEV��CU�YGNN�CU�GPJCPEG�VJG�GHÌEKGPE[�QH��VJGKT�RGTHQTOCPEG�

Roles of Chairman

Served as president in Board of Directors Meeting and Casting vote in case of Equal votes in the meeting. Including VQ�ECNN�VJG�$QCTF�QH�&KTGEVQTU�/GGVKPI�CPF�5GTXGF�CU�RTGUKFGPV�KP�5JCTGJQNFGTU�/GGVKPI��+PENWFKPI�NGICN�QHÌEKCVG�YJKEJ�URGEKÌE�%JCKTOCP�&WV[�

Board of Directors Meeting Attendance for year 2015

Name Title No. of Attendance

��/T��5WTCEJCK�%JGVEJQVKUCM Chairman 5/6

��/TU��2QTPRCP�6GEJCTWPIEJCKMWN� Director 6/6

3. Mr. Darm Nana Director 6/6

4. Mr. Danaisidh Peslapunt Director 6/6

5. Mr. Soopachai Nillawan Director 1/6

��/T��5QTCV��8CPKEJXCTCMKL Director 6/6

7. Mr. Phisit Dachanabhirom Independent Director 6/6

8. General Pairoj Panichsamai Independent Director 6/6

��#UUQEKCVG�2TQHGUUQT�9KVC[C�&CPVJCOTQPIMWN Independent Director 5/6

534GOCTM�

1. /T�5QQRCEJCK�0KNNCYCP�TGRNCEGF�/T��5WVVJKUCM�2TCUCVMCTWMCTP�KP�VJG�RQUKVKQP�QH�&KTGEVQT�QP�0QXGODGT��2. #UUQEKCVG� 2TQHGUUQT�9KVC[C� &CPVJCOTQPIMWN� TGUKIPGF� HTQO� VJG� RQUKVKQP� QH� +PFGRGPFGPV� &KTGEVQT� QP� ,CPWCT[�� CPF��

Mrs.Wansuda Thanasaranart will be replaced with the approval of the Board of Directors Meeting No. 5/2015 held on November16, 2015.

3. �/T�5WTCEJCK�%JGVEJQVKUCM�FKFP¿V�CVVGPF�VJG�$QCTF�QH�&KTGEVQTU�/GGVKPI��FWG�VQ�VJG�HQTGKIP�VCUM�4. �#UUQEKCVG�2TQHGUUQT�9KVC[C�&CPVJCOTQPIMWN�FKFP¿V�CVVGPF�VJG�$QCTF�QH�&KTGEVQTU�/GGVKPI��FWG�VQ�VJG�WTIGPV�VCUM�

Audit Committee As at December 31, 2015. The members of the Audit Committee are :

1. Mr. Phisit Dachanabhirom1 Chairman

2. General Pairoj Panichsamai Director

��#UUQEKCVG�2TQHGUUQT�9KVC[C�&CPVJCOTQPIMWN�2 Director

4GOCTM��1. /T��2JKUKV�&CEJCPCDJKTQO�KU�VJG�#WFKV�%QOOKVVGG�/GODGT�VJCV�JCU�MPQYNGFIGU�CPF�GZRGTKGPEGU�KP�TGXKGYKPI�VJG�(KPCPEKCN�5VCVGOGPVU��*G�KU�VJG�EGTVKÌGF�CWFKVQT�%2#�.KEGPUG�0Q��*G�TGPFGTU�JKU�CWFKV�UGTXKEGU�HQT�PQP�NKUVGF�EQORCP[��

2. #UUQEKCVG�2TQHGUUQT�9KVC[C�&CPVJCOTQPIMWN� TGUKIPGF� HTQO� VJG�RQUKVKQP�QH�#WFKV�%QOOKVVGG�QP�,CPWCT[��CPF�/TU�9CPUWFC�Thanasaranart will be replaced with the approval of the Board of Directors Meeting No. 5/2015 held on November16, 2015.

Responsibilities of Audit Committee

1. #VVGPF�VJG�$QCTF�QH�&KTGEVQTU�/GGVKPIU�CU�VQ�RCTVKEKRCVG�KP�RQNKE[�FGVGTOKPCVKQP��DWUKPGUU�FGEKUKQP�OCMKPI�CPF�corporate governance issues.

2. Consider and recommend the appointment and withdrawn of the auditor and the proposed audit fee including the following issues :

• To ensure the independence of the external auditor, the Audit Committee shall consider any factors that OC[�EQPÍKEV�YKVJ�VJG�CWFKVQT¿U�GHÌEKGPV�CPF�RTQHGUUKQPCN�QRGTCVKQPU��

• 6Q�HTGGN[�FKUEWUU�UKIPKÌECPV�OCVVGTU��VJG�#WFKV�%QOOKVVGG�UJCNN�OGGV�RTKXCVGN[�YKVJ�VJG�GZVGTPCN�CWFKVQT�once a year, without the management team being present.

3. Consider the policy and code of conduct of the internal audit department as to ensure their continual appropriateness and effectiveness.

4. Review the annual audit plans of the internal audit department.

5. Review the internal control and internal audit system as to ensure their appropriateness and effectiveness by coordinating with the internal and external auditors. The Audit Committee shall consider the following issues :

• To strengthen the independence of the internal audit department, the Audit Committee shall approve any selection, promotion, rotation or termination of the department head.

• To ensure the independence of the internal audit department, the Audit Committee shall consider other factors that might impact its independent performance, including reporting and supervision processes.

6. Consider the quarterly audit report and recommendations of the internal and external auditors as well as follow WR�VJG�CEVKQP�VCMGP�CEEQTFKPI�VQ�UWEJ�TGEQOOGPFCVKQPU�

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Annual Report 2015

7. 4GXKGY�VJG�SWCTVGTN[�%QORCP[�CPF�UWDUKFKCTKGU�ÌPCPEKCN�TGRQTVU�CU�VQ�GPUWTG�VJCV�VJG[�CTG�CEEWTCVG��ETGFKDNG�and have adequate information disclosures according to the good corporate governance principle.

8. 'PUWTG�VJCV�VJG�%QORCP[�KU�KP�EQORNKCPEG�YKVJ�VJG�TWNGU�QT�TGIWNCVKQPU�RTGUETKDGF�D[�VJG�5VQEM�'ZEJCPIG�QH�Thailand and any other laws related to its business.

9. 4GXKGY�VJG�TGNCVGF�VTCPUCEVKQPU�QH�VJG�%QORCP[��KVU�UWDUKFKCTKGU�CPF�CP[�RGTUQPU�VJCV�OC[�ECWUG�VJG�EQPÍKEV�QH�KPVGTGUV��VQ�GPUWTG�VJCV�VJG�TGNCVGF�VTCPUCEVKQPU�CTG�KP�CRRTQRTKCVG�EQPFKVKQPU�YKVJQWV�CP[�DGPGÌV�GODG\\NGOGPV��

10. %QQTFKPCVG�YKVJ�VJG�GZVGTPCN�CWFKVQT�VQ�EQPUKFGT�CP[�RTQDNGOU�QT�TGUVTKEVKQPU�GPEQWPVGTGF�KP�RGTHQTOKPI�ÌPCPEKCN�statements audit.

11. Prepare the Audit Committee report. The report must be signed by the Chairman of the Audit Committee and disclosed in the Company’s Annual Report. Its report should include the following information :

• The number of committee meetings and attendance of each member.

• Comments on :

o #EEWTCVGPGUU��EQORNGVGPGUU�CPF�ETGFKVCDKNKV[�QH�VJG�EQORCP[¿U�ÌPCPEKCN�TGRQTV�o #FGSWCE[�QH�VJG�ÌTO¿U�KPVGTPCN�EQPVTQN�U[UVGO�o Compliance with SEC’s and SET’s laws and regulation and other laws relevant to the company’s business.

o Suitability of the external auditor.

o 6TCPUCEVKQPU�VJCV�OC[�ECWUG�EQPÍKEVU�QH�KPVGTGUV�o 1VJGT� EQPEGTPU� VJCV� JCXG� CTKUGP� CU� VJG� CWFKV� EQOOKVVGG� RGTHQTOGF� KVU� FWVKGU� CU� FGÌPGF� KP�

the committee’s charter.

• Anything else which should be made available to shareholders and general investors within the scope of duties and responsibilities assigned by the Board of Directors.

12. The Audit Committee is authorized to invite the executive directors, Management or concerned persons to either provide necessary information or attend the meeting.

13. Consider any other matters as assigned by the Board of Directors with the consent of the Audit Committee.

Nomination and Remuneration Committee� #U�CV�&GEGODGT��0QOKPCVKQP�CPF�4GOWPGTCVKQP�%QOOKVVGG�EQPUKUVU�QH��SWCNKÌGF�RGTUQPU�

1. Mr. Phisit Dachanabhirom Chairman

2. General Pairoj Panichsamai Director

��#UUQEKCVG�2TQHGUUQT�9KVC[C�&CPVJCOTQPIMWN1 Director

4GOCTM 1. #UUQEKCVG�2TQHGUUQT�9KVC[C�&CPVJCOTQPIMWN�TGUKIPGF�HTQO�VJG�RQUKVKQP�QH�0QOKPCVKQP�CPF�4GOWPGTCVKQP�%QOOKVVGG�QP�,CPWCT[��CPF��

Mrs.Wansuda Thanasaranart will be replaced with the approval of the Board of Directors Meeting No. 5/2015 held on November16, 2015.

55Duties and responsibilities of the Nomination and Remuneration Committee

1. 'UVCDNKUJ�ETKVGTKC� CPF�RTQEGFWTGU� HQT� UGNGEVKPI�C�RGTUQP�YJQ� KU�SWCNKÌGF� VQ� JQNF�QHÌEG�CU�C�FKTGEVQT�� UGNGEV�DGUV� ECPFKFCVG� KP� CFJGTGPEG� VQ� VJG�RTQEGFWTGU� UGV� QWV�� CPF�OCMG� VJG� TGEQOOGPFCVKQP� VQ� VJG�DQCTF�YJQ�shall subsequently propose the nominee for appointment by the meeting of the shareholders of the Company. The duties and responsibilities can be outlined as follows:

• &GVGTOKPG�SWCNKÌECVKQPU�QH�C�FKTGEVQT�KP�CEEQTFCPEG�YKVJ�VJG�UVTWEVWTG��UK\G�CPF�EQORQUKVKQP�UGV�HQTVJ�D[�VJG�DQCTF��D[�VCMKPI�VJG�HQNNQYKPI�UVGRU�

• %QPUKFGT�C�EQODKPGF�UWKVCDKNKV[�QH�MPQYNGFIG��GZRGTKGPEG�CPF�GZRGTVKUG�VQ�FGVGTOKPG�FGUKTGF�SWCNKÌECVKQPU

• Assess the independence of each candidate to see whether he/she is completely or incompletely SWCNKÌGF�CU�CP� KPFGRGPFGPV�FKTGEVQT��CPF� VQ�EQPUKFGT�YJGVJGT�QT�PQV� KV� KU�PGEGUUCT[� VQ�ÌPF� a new independent director in the case that the number of independent directors do not reach the numbers as stated in the board’s policy.

• Consider each candidate’s promising dedication of time.

• 5GNGEV�CPF�PQOKPCVG�C�UWKVCDNG�ECPFKFCVG�HQT�VJG�DQCTF�VQ�EQPUKFGT�CPF�RTQRQUG�VJCV�PQOKPGG�HQT�ÌPCN�consideration and appointment by the meeting of the shareholders of the Company.

• Determine a method of director selection that suits the Company’s characteristics.

• )Q�VJTQWIJ�VJG�NKUV�QH�ECPFKFCVGU��CPF�UGNGEV�VJG�DGUV�QPG�YJQ�OGGVU�VJG�SWCNKÌECVKQP�TGSWKTGOGPVU�set out.

• %QPFWEV� C� ECTGHWN� EJGEM� VQ�OCMG� UWTG� VJCV� VJG�DGUV� ECPFKFCVG�YJQ�YKNN� DG�PQOKPCVGF� HQT� VJG�CRRQKPVOGPV�D[�VJG�UJCTGJQNFGTU¿�OGGVKPI�KU�FWN[�SWCNKÌGF�KP�CEEQTFCPEG�YKVJ�VJG�TWNGU�CPF�regulations established by the authorities.

• #RRTQCEJ�VJCV�SWCNKÌGF�ECPFKFCVG�VQ�OCMG�UWTG�VJCV�JG�UJG�CITGGU�VQ�CEEGRV�VJG�RQUKVKQP�CU�director when he/she is appointed by the shareholders of the Company.

• Propose his/her name for consideration and approval by the board. Upon the board’s approval, a notice of the meeting of the shareholders of the Company in this regard will be made and sent to the shareholders calling them to meet, discuss and consider whether or not to appoint that nominee.

2. Develop a model and guidelines on the payment of directors’ remuneration which will be recommended to the Board who will then propose them to the meeting of the shareholders of the Company for approval.

3. Establish guidelines for evaluating CEO performance.

4. Determine the annual remuneration of directors

5. Offer new ESOP (or warrants) to directors and employees under diverse conditions that will induce directors and staff members to perform duties with their best effort, add a long-time value to the shareholders, and truly GPCDNG�VQ�TGVCKP�GHÌEKGPV�CPF�EQORGVGPV�RGTUQPPGN��JQYGXGT��UWEJ�KPEGPVKXG�UEJGOG�UJQWNF�PQV�EQUV�VQQ�OWEJ�and should be fair to the shareholders of the Company.

MEDIA REVOLUTIONIST

Annual Report 2015

The Board of Directors’ Meeting No. 3/2007 on 26 February 2007 has approved the appointment of the Nomination and Remuneration Committee. And the scope of authority of the Board Nomination and Remuneration Committee.

Executive Committee As at December 31, 2015: The members of Executive Committee are:

��/T�5WTCEJCK��%JGVEJQVKUCM�� Chairman

��/TU��2QTPRCP��6GEJCTWPIEJCKMWN� Director

3. Mr. Darm Nana Director

Responsibilities of the Executive Committee

The Board of Directors Meeting No. 1/2003 held on January 28, 2003 and the Board of Directors Meeting No. 2/2013 held on 14 May 2013 had the resolution to determine the scope of Executive Committee’s authority in that Executive Committee is authorized to commit any acts necessary for or related to the normal business operation of the company.

� #��6Q�CRRTQXG�NQCPU�QT�CRRN[�HQT�ETGFKV�HTQO�ÌPCPEKCN�KPUVKVWVKQPU��CU�YGNN�CU�CEVKPI�CU�UWTGV[�QT�OCMKPI�RC[OGPVU� for general activities of the company. The credit limit of each item must be less than 100 million baht or equivalent.

� $��6Q�CRRQKPV�CPF�TGOQXG�VJG�EQORCP[�GORNQ[GGU�YJQ�CTG�TCPMGF�DGNQY�/CPCIKPI�&KTGEVQT�EWTTGPVN[�EJCPIGF� � � VQ�%JKGH�'ZGEWVKXG�1HÌEGT�� (C) To initiate, suggest and formulate policy for the business direction and business strategy of the company and present it to the Board of Directors.

(D) To form corporate and management structures and Executive Committee. To oversee all aspects of the recruiting, training, employment and removal of company employees.

(E) To formulate business plans and management powers. To approve the annual budget for business operations and expenses. To run the company following the business plan and strategy as well as the policy and business direction presented to the Board of Directors.

(F) To be responsible for other duties assigned by the Board of Directors in each period.

Approval for carrying out the activities mentioned above would not be granted in cases where the Executive %QOOKVVGG��QT�RCTVKGU�CWVJQTK\GF�D[�VJG�'ZGEWVKXG�%QOOKVVGG�� KU�CWVJQTK\GF�VQ�CRRTQXG�CEVKXKVKGU�VJCV�OC[�EQPÍKEV�YKVJ� VJG�EQORCP[¿U�KPVGTGUVU�WPFGT�VJG�TGIWNCVKQPU�CPF�CPPQWPEGOGPVU�QH�VJG�5VQEM�'ZEJCPIG�QH�6JCKNCPF��'ZEGRVKQPU�YQWNF�DG�made for those activities carried out under policies and regulations approved by the Board of Directors, whereby the Board of Directors has the authority to amend or change the responsibilities of the Executive Committee whenever necessary.

57Risk Management Committee

� #U�CV�&GEGODGT��VJG�4KUM�/CPCIGOGPV�%QOOKVVGG�EQPUKUVU�QH��SWCNKÌGF�RGTUQPU�

��/TU��2QTPRCP�6GEJCTWPIEJCKMWN� Chairman


Duties and responsibilities of the Risk Management Committee

The Company’s Board of Directors meeting no. 5/2010 on August 16, 2010, has the resolution to appoint VJG�4KUM�/CPCIGOGPV�%QOOKVVGG��CPF�JCU�CWVJQTK\GF�KVU�UEQRG�QH�FWVKGU�CPF�TGURQPUKDKNKVKGU�CU�HQNNQYU�

1. %QPUKFGT� VJG�RQNKE[�� HTCOGYQTM�� CPF�RTQEGFWTG� QP� VJG� TKUM�OCPCIGOGPV�YJKEJ� KPENWFGU�IKXKPI� CFXKEG� VQ� VJG�%QORCP[¿U�$QCTF�QH�&KTGEVQTU�CPF�OCPCIGOGPV�VGCO�QP�TKUM�OCPCIGOGPV�

2. 5WRGTXKUG�CPF�UWRRQTV� VJG�TKUM�OCPCIGOGPV�UQ� VJCV� KV� KU�CEEQTFKPI� VQ�RNCP��CPF�TGUWNVU� KP�CEJKGXGOGPVU� HQT� the organization as well as in the project level.

3. %QPUKFGT�VJG�%QORCP[¿U�KORQTVCPV�TKUMU�QP�VJG�QTICPK\CVKQP�NGXGN��CPF�GXCNWCVG�VJG�TKUM�OCPCIGOGPV�RTQEGFWTGU�to be in accordance with the Company’s strategy and business plan.

4. Report performance to the Audit Committee and the Company’s Board of Directors.

Good Corporate Governance Committee

� #U�CV�&GEGODGT��VJG�)QQF�%QTRQTCVG�)QXGTPCPEG�%QOOKVVGG�EQPUKUVU�QH��SWCNKÌGF�RGTUQPU�



Duties and responsibilities of the Good Corporate Governance Committee

The Company’s Board of Directors meeting no. 1/2011 on February 23, 2011, has the resolution to appoint the Good Corporate Governance Committee, and has authorized its scope of duties and responsibilities as follows:

1. Propose guideline or policy on the good corporate governance to the Audit Committee and the Company’s Board of Directors

2. Review or improve guideline or policy on the Company’s good corporate governance

3. Give suggestions on good corporate governance to the Audit Committee and the Company’s Board of Directors

4. Supervise Directors and the Management team to comply with the good corporate governance’s policy

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Annual Report 2015

Human Development Committee

As at December 31, 2015, the members of Human Development Committee are:


2. Ms. Praornsri Udompol Director

Responsibilities of Human Development Committee

Human Development Committee’s responsibilities are as follows :

(a) To present human resource policy and management direction

(b) To draw techniques and strategies for human resource development

(c) To oversee and supervise human resource operation

� F��6Q� EQPUKFGT� CPF�OCMG� FGEKUKQPU� QP� JWOCP� TGUQWTEGFGXGNQROGPV� KUUWGU� DCUGF� QP� VJG� FKTGEVKQP� approved by the company’s committee

Management Team As at December 31, 2015, the members of Management Team are as follows:

��/T��5WTCEJCK��%JGVEJQVKUCM %JKGH�'ZGEWVKXG�1HÌEGT��/TU��2QTPRCP��6GEJCTWPIEJCKMWN %JKGH�1RGTCVKPI�1HÌEGT3. Mr. Darm Nana %JKGH�(KPCPEKCN�1HÌEGT4. Mr. Danaisidh Peslapunt %JKGH�.GICN�1HÌEGT5. Mr. Soopachai Nilawan Senior Vice President

6. Ms. Chutima Tichachart Senior Vice President

��/U��0QPINWM��0ICOTQL Senior Vice President

4GOCTM� �1. 'ZGEWVKXG�TGHGTU�VQ�GZGEWVKXG�CU�RGT�FGÌPKVKQP�HTQO�CPPQWPEGOGPV�QH�VJG�5GEWTKVKGU�CPF�'ZEJCPIG�%QOOKUUKQP�5'%��PQ�UQT�LQT��

Roles and Responsibilities of the Chief Executive Officer

The Board of Directors Meeting No. 1/2003 held on January 28, 2003 and the Board of Directors Meeting No. 2/2013 held on 14 May 2013 had the resolution to determine the scope of Managing Director’s authority in that Managing Director RTGUGPVN[�ECNNGF�Á%JKGH�'ZGEWVKXG�1HÌEGTÂ��KU�CWVJQTK\GF�VQ�CRRTQXGF�EQOOKV�CP[�CEVU�PGEGUUCT[�HQT�QT�TGNCVGF�VQ�VJG�PQTOCN�DWUKPGUU�QRGTCVKQP�QH�VJG�EQORCP[��6JG�/CPCIKPI�&KTGEVQT�RTGUGPVN[�ECNNGF�Á%JKGH�'ZGEWVKXG�1HÌEGTÂ��KU�EQPEGTPGF�YKVJ�the company in general and has the authority to carry out any activity that is necessary. The credit limit of each item must DG�NGUU�VJCP��OKNNKQP�DCJV�QT�GSWKXCNGPV��*QYGXGT��VJG�/CPCIKPI�&KTGEVQT�RTGUGPVN[�ECNNGF�Á%JKGH�'ZGEWVKXG�1HÌEGTÂ��JCU�no authority to deal with important assets received or sold out of the company; or matters concerning persons who may DG�KP�EQPÍKEV�YKVJ��QT�JCXG�EQPÍKEV�QH�KPVGTGUV�YKVJ�VJG�CEVKXKVKGU�QH�VJG�EQORCP[�QT�CHÌNKCVGF�EQORCPKGU��+P�UWEJ�KPUVCPEGU�� the Audit Committee and/or the Board of Directors, depending on the case, will consider the matter.

59Nomination of Directors and Executives The Board of Directors Meeting No. 3/2550 held on February 26, 2007 had its resolution to appoint the Nomination and Remuneration Committee and also approved the responsibilities of the Nomination and Remuneration Committee. Hence, personnel selection for the Company’s Director must proceed through the Nomination and Remuneration Committee. The Director’s selection procedures must be done by the Nomination and Remuneration Committee whose consideration will DG�DCUGF�CU�RGT�SWCNKÌECVKQP�KP�UGEVKQP��QH�VJG�2WDNKE�%QORCP[�.KOKVGF�#EV�$�'��CPF�VJG�TGNCVGF�CPPQWPEGOGPVU�QH�VJG�5GEWTKVKGU�CPF�'ZEJCPIG�%QOOKUUKQP��/QTGQXGT��EQPUKFGTCVKQPU�YKNN�DG�DCUGF�QP�CDKNKV[��GZRGTKGPEG��MPQYNGFIG��CPF�URGEKÌE�UMKNN� HQT�VJG�DGPGÌV�CPF�FGXGNQROGPV�QH�VJG�%QORCP[¿U�DWUKPGUU��CPF�FGFKECVKPI�VJGKT�VKOGU�CPF�GHHQTVU�KP�conducting their duties. Then, the list will be submitted to the Board of Directors and shareholders’ meeting for approval.

For appointment of the Board of Directors, the shareholders’ meeting appoints the Director based on majority votes with the following regulations and guidelines:

a) One shareholder has one vote per one share.

b) Shareholders can vote for each directorial appointment.

c) Persons who receive the highest sequential votes will be appointed as Directors equal to the required number of that particular election. In the case of any persons receiving equal sequential votes which are more than � ��VJG�TGSWKTGF�PWODGT��VJG�%JCKTOCP�YKNN�OCMG�VJG�ÌPCN�FGEKUKQP�

Company Secretary� 6JG�$QCTF�QH�&KTGEVQTU�JCU�CRRQKPVGF� VJG�%JKGH�1RGTCVKPI�1HÌEGT� VQ�DG� VJG�%QORCP[�5GETGVCT[��6JG�RTGUGPV�%QORCP[�5GETGVCT[�KU�/TU��2QTPRCP6GEJCTWPIEJCKMWN��6JG�%QORCP[�5GETGVCT[�FWV[�KU�VQ�GPUWTG�VJCV�VJG�%QORCP[�EQORNKGU�YKVJ�VJG�)QQF�%QTRQTCVG�)QXGTPCPEG�QH�VJG�5VQEM�'ZEJCPIG�QH�6JCKNCPF�

Name /TU��2QTPRCP�6GEJCTWPIEJCKMWNPosition Director, Executive Committee

4KUM�/CPCIGOGPV�%QOOKVVGG�%JCKTOCPGood Corporate Governance Committee Chairman Human Development Committee Chairman %QORCP[�5GETGVCT[�CPF�%JKGH�1RGTCVKPI�1HÌEGT

Age 45 Years

Education Master degree (MBA) from Sasin Graduate institute of Business #FOKPKUVTCVKQP�QH�%JWNCNQPIMQTP�7PKXGTUKV[$CEJGNQT�FGITGG�QH�5VCVKUVKEU�%JWNCNQPIMQTP�7PKXGTUKV[Executive Development Program 4 (EDP 4) Year 2009Thai Listed Companies Association

Shareholding (%) None

Relationship between Management. None

Experience 2004 – present Director RS Public Company Limited2008 – present Secretary to the Board of Directors and Company Secretary RS Public Company Limited��¼�RTGUGPV��%JKGH�1RGTCVKPI�1HÌEGT�45�2WDNKE�%QORCP[�.KOKVGF

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Annual Report 2015

Executive Remuneration

Cash Remuneration A) Directors

ListYear 2015

No. Amount of money (Baht) Detail of Remuneration

Directors 10 1,025,000 Fixed remuneration and Meeting allowance

Audit Committee 3 1,863,000 Fixed remuneration and Meeting allowance

Detail of Remuneration and Meeting allowance are as follows:

No. Board of DirectorYear 2015

Fixed remuneration (Baht)

Meeting allowance (Baht)

1 /T��5WTCEJCK�%JGVEJQVKUCM - 125,000

2 /TU��2QTPRCP�6GEJCTWPIEJCKMWN - 120,000

3 Mr. Darm Nana - 120,000

4 Mr. Danaisidh Peslapunt - 120,000

5 /T��5WVVJKUCM�2TCUCVMCTWMCTP - 60,000

6 Mr. Soopachai Nilawan - 20,000

7 /T��5QTCV�8CPKEJXCTCMKL - 120,000

8 Mr. Phisit Dachanabhirom - 120,000

9 General Pairoj Panichsamai - 120,000

10 /T��9KVC[C�&CPVJCOTQPIMWN - 100,000

Total 1,025,000

4GOCTM1. &KTGEVQT� TGOWPGTCVKQP� KU� VJG�DGPGÌV�RCKF� VQ� VJG�EQORCP[¿U�FKTGEVQTU� KP�CEEQTFCPEG�YKVJ�5GEVKQP��QH� VJG�2WDNKE�%QORCP[�.KOKVGF�#EV�$�'��GZENWFKPI�UCNCT[�CPF�TGNGXCPV�DGPGÌVU�RCKF�VQ�VJG�FKTGEVQTU�YJQ�CNUQ�JQNF�VJG�VKVNG�QH�VJG�EQORCP[¿U�GZGEWVKXGU�� There is no remuneration for the directors of subsidiaries.

2. /T�5QQRCEJCK�0KNNCYCP�TGRNCEGF�/T��5WVVJKUCM�2TCUCVMCTWMCTP�KP�VJG�RQUKVKQP�QH�&KTGEVQT�QP�0QXGODGT��3. #UUQEKCVG� 2TQHGUUQT�9KVC[C� &CPVJCOTQPIMWN� TGUKIPGF� HTQO� VJG� RQUKVKQP� QH� +PFGRGPFGPV� &KTGEVQT� CPF� #WFKV� %QOOKVVGG� QP�

January13, 2016 and Mrs.Wansuda Thanasaranart will be replaced.

B) Executive Directors and Management Team

ListYear 2015

No.Amount of money

(million baht) Detail of remuneration

Executive Directors 3 - -

Management team 7 92.83 Salary / bonus / other allowance

In 2015, the Company has paid provident fund to 6 Executives at approximate amount of Baht 2.29 million.

61Other Remuneration -Nil-

Personnel The number of employees in the company and its subsidiaries as of 31 December 2015 is 1,310 persons of which categorized into RS employees of 1,103 persons and subsidiaries’ employees of 207 persons. The total rewards of company staff as of the year 2015 amounted to Baht 757 million, paid in the form of salaries, overtime and welfare payments, bonus and provident fund, as well as provident fund for employees totaling about Baht 20 Million.

Human Resources Development Policy

1. The Company realizes the importance of employees as human capital, the most valuable factor that is instrumental in steering the organization towards growth on a sustainable basis. Hence, annual operational plan and budget JCXG�DGGP�ENGCTN[�URGEKÌGF�CPF�CTTCPIGF�CEEQTFKPIN[��*WOCP�TGUQWTEGU�FGXGNQROGPV�KU�FKXKFGF�KPVQ�VJTGG�NGXGNU�i.e. Organization Development, Career Development and Training Development. In 2015, the company has a total of 12 training courses of 34 sessions. There are 228 hours of Internal training and 255 hours of External training for a total of 483 hours which can be separated as follows:

1.1 Organization development has promoted the creation of corporate culture within companies under the RS Public Company Limited and since the orientation of new employees through Welcome Day Activity, there are already 12 sessions with 179 attendances.

1.2 Employees’ Career Development�VJCV�FGÌPGU�RTQITGUUKXG�ECTGGT�RCVJ�CPF�UVKRWNCVGU�VJG�RTQOQVKQP�RCVJ��1.3 Training and development is stipulated by using the “Competency Base Training” together with research

on the “Training Need” with development methods on both public training, and In-house training. These VTCKPKPIU�EQXGT�QP�VJG�-PQYNGFIG�&GXGNQROGPV��#VVKVWFG�&GXGNQROGPV��CPF�5MKNN�&GXGNQROGPV��'ZCORNGU�are 1) the “RS Revolution Camp” 1 session of 25 attendances 2) “How to use the Lotus Note program” 2 sessions of 87 attendances. 3) Learning to use the “Axapta” accounting system with 2 sessions of 49 attendances. 4) “Change Management through RS Media Revolution” 1 session of 25 attendances. 5) Á+PVGTXKGY�5MKNN�6GEJPKSWGUÂ��UGUUKQP�QH��CVVGPFCPEGU��Á%QR[TKIJVU�.CYÂ��UGUUKQP�QH��CVVGPFCPEGU��7) “AEC preparation: Business English-English Conversation & E Mail Writing” 2 sessions of 53 attendances and 8) “Team Building CCM” 3 sessions of 118 attendances, all consisting from operation personnel up to the management level.

The Company also arrange for the safety training course for general employees and the new recruits as stipulated D[�NCY�YKVJ��UGUUKQPU�QH�VQVCNGF��CVVGPFCPEGU��#NN�GORNQ[GGU�JCXG�DGGP�VTCKP�QP�ÌTG�FTKNN�CPF�ÌTG�GXCEWCVKQP�KPENWFKPI�EQWTUG�QP�RTKOCT[�ÌTG�GZVKPEVKQP�YKVJ��UGUUKQPU�QH��CVVGPFCPEGU��6JG�%QORCP[�CNUQ�QTICPK\GU�PQP�VTCKPKPI�CEVKXKVKGU�CPF�MPQYNGFIG�UJCTKPI�RTQITCOU�KP�YJKEJ�GORNQ[GGU�CTG�CNNQYGF�VQ�CVVGPF�KH�VJG[�CTG�KPVGTGUVGF�YJKEJ�CTG�KP�VJG�HQTO�QH�URGEKCN�NG�EVWTGU�D[�UWEEGUUHWN�GZGEWVKXGU�CPF�URGCMGTU�HTQO�GZVGTPCN�QTICPK\CVKQPU�UWEJ�CU�URGEKCN�NGEVWTG�EQPEGTPKPI�MPQYNGFIG�QP�VGEJPKSWG�QP�UWDOKUUKQP�QH�RGTUQPCN�KPEQOG�VCZ�HQTO�HQT�OCZKOWO�DGPGÌV�YKVJ��UGUUKQP�QH��CVVGPFCPEGU��GVE�

2. The Company indicates the importance in continuously building employee engagement through diverse activities such as the New Year party, etc.

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Annual Report 2015

3. The Company also realizes in building appreciation towards corporate social responsibility (CSR) to employees, and to be continuously in accordance with the corporate vision by promoting and arranging for activities such as activity for “RS Birthday Charity” which has been arranged monthly throughout the 2015. This allows employees, stars and artists who have birthday in each month to share their happiness with the socially disadvantaged patients with serious disease, children, the elderly and the disabled in institutions and organizations etc. as follows:

� Á45�$KTVJFC[�%JCTKV[Â��UV�UGUUKQP�KP�,CPWCT[��CV�VJG�Á$CCP�0QMMCOKP�(QWPFCVKQPÂ� Á45�$KTVJFC[�%JCTKV[Â��PF�UGUUKQP�KP�(GDTWCT[��CV�VJG�Á3WGGP�5KTKMKV�0CVKQPCN�+PUVKVWVG�QH�%JKNF�*GCNVJÂ “RS Birthday Charity” 3rd session in March 2015 at the “Veterans General Hospital”

“RS Birthday Charity” 4th session in April 2015 at the “Bang Khaen Geriatric Hospital Foundation”

“RS Birthday Charity” 5th session in May 2015 at the “Rajvithi Home for Girls”

“RS Birthday Charity” 6th session in June 2015 at the “Chulabhorn Hospital”

� Á45�$KTVJFC[�%JCTKV[Â��VJ�UGUUKQP�KP�,WN[��CV�VJG�Á6JG�$CPIMQM�5EJQQN�HQT�VJG�DNKPFÂ “RS Birthday Charity” 8th session in August 2015 at the “The Thai Red Cross Society”

“RS Birthday Charity” 9th session in September 2015 at the “Thai Red Cross Children Home”

“RS Birthday Charity” 10th session in October 2015 at the “Din Daeng Social Welfare Services for older persons”

“RS Birthday Charity” 11th session in November 2015 at the “Foundation For Slum Child Care”

“RS Birthday Charity” 12th session in December 2015 at the “Siriraj Hospital”

Moreover, the Company also arranges the “RS Media Trend Forum 2015” activity in order to share experience and MPQYNGFIG�CU�CP�GZRGTV�KP�VJG�OGFKC�DWUKPGUU�VQ�VJG�WPFGTITCFWCVGU�CPF�NGEVWTGTU�KP�VJG�HQNNQYKPI�WPKXGTUKVKGU�

• Á45�/GFKC�6TGPF�(QTWO��Â�YKVJ�VQRKE�Á*QY�VQ�ETGCVG�RGQRNG�CPF�YQTM�VQ�DG�TGURQPUKXG�YKVJ�VJG�OGFKC�KPFWUVT[Â�CV�VJG�$CPIMQM�7PKXGTUKV[

• “RS Media Trend Forum 2015” with topic “How to create music to be responsive with the media industry” CV�%JWNCNQPIMQTP�7PKXGTUKV[

• “RS Media Trend Forum 2015” with topic “Response with innovation in the Digital Television” at the Assumption University

4. 6JG�%QORCP[�JCU�CPPQWPEGF�RQNKE[�QP�UCHGV[��JGCNVJ��CPF�GPXKTQPOGPV�KP�VJG�YQTMKPI�RNCEG�D[�CTTCPIKPI�CNN�levels of employees to join in many levels of safety levels. This is to move its safety policy to be more substantially viable and correspondence with related laws and safety standards.

In 2015, the Company has expanded and monitored the safety performance as the safety, health, and environment EQOOKVVGG�OGODGTU�JCU�TGXKGYGF�CPF�RTGUGPVGF�KVU�RNCP�VQ�CNN�NGXGN�QH�GORNQ[GGU�KP�QTFGT�VQ�OCMG�EQPVKPWQWU�KORTQXGOGPV�such as 1) Set up of the safety meeting, represented by all level of employees to monitor, report, and follow up on unsafe URQVU�KP�VJG�YQTMKPI�RNCEG��OCMG�KORTQXGOGPV�KP�VJG�YQTMKPI�CTGC�CV�RQKPVU�YJGTG�CEEKFGPV�OKIJV�QEEWT��CPF�UGVVKPI�WR QH� XCTKQWU� UCHGV[� UKIPU�� KORTQXG� VJG� ÌTG� GUECRG� TQWVG� U[UVGO�� ÌTG� GZKV� UKIPU�� CPF� VJG� GOGTIGPE[� NKIJV� VQ�DG�YKVJ� VJG�URGEKÌGF�UVCPFCTF��EQNNGEV�TGEQTF�QH�CEEKFGPV��CPF�UKEMPGUU�QH�GORNQ[GGU�YJQ�WUG�UGTXKEG�QH�VJG�%QORCP[¿U�PWTUKPI�HCEKNKV[�KP�QTFGT�VQ�CPCN[\G�VJG�ECWUG��UQNWVKQP��CPF��UWRRN[�YKVJ�KPHQTOCVKQP�EQPEGTPKPI�MPQYNGFIG�KP�JGCNVJ��CPF�UCHGV[�KP�VJG�YQTM�RNCEG�UQ�VJCV�GORNQ[GGU�ECP�CFLWUV�VJGKT�YQTMKPI�DGJCXKQT�HQT�C�DGVVGT�JGCNVJ�CPF�UCHGV[��GVE�

1Corporate Governance

MEDIA REVOLUTIONIST

Annual Report 2015

Corporate Governance The Company has stipulated its policy on corporate governance by emphasizing on the control and internal CWFKV�U[UVGO��CPF�EQTRQTCVG�IQXGTPCPEG�QH�/CPCIGOGPV�VQ�GHÌEKGPVN[�HQNNQYKPI�KVU�RQNKE[��6JKU�KU�HQT�NQPI�VGTO�DGPGÌVU�QH�UJCTGJQNFGTU��KPENWFKPI�VTCPURCTGPE[�QP�DWUKPGUU�QRGTCVKQPU��KPHQTOCVKQP�FKUENQUWTG��CPF�YKVJ�RTQRGT�TKUM�OCPCIGOGPV�as well as the Social and Environment Responsibility for sustaining development.

In 2015, the Company has been continuously granted the Very Good CG Scoring from Thai Listed Companies Good Corporate Governance Survey Year 2015.

Summarization on corporate governance practices in 2015 is as follows:-

Good Corporate Governance Policy

The Company’s Board of Directors stipulates policy on good corporate governance in a written format, and considers reviewing the good corporate governance policy and code of conduct manual for the Company Group. Follow up on evaluation of policy compliance is set to at least once a year. The Company publishes manuals to Directors and employees for references and practices and announced in the Company’s intranet.

The Company’s Board of Directors Meeting No. 2/2016 on February 24, 2016 reconsidered, improved, and had its resolution to approve the good corporate governance policy and code of conduct manual for the Company Group, and followed up on evaluation of policy compliance.

� /QTGQXGT��VJG�%QORCP[�JCU�EQORN[�YKVJ�VJG�IQQF�EQTRQTCVG�IQXGTPCPEG�RQNKE[�HQT�NKUVGF�EQORCPKGU�KP�VJG�5VQEM�Exchange of Thailand as states in the 5 following guidelines:

• Shareholder rights• Equal Right to Shareholders• 4KIJVU�QH�5VCMGJQNFGTU• Information Disclosure and Transparency• Responsibilities of the Board of Directors and Sub-Committees

Shareholder Rights

The Company stresses the importance of respecting the shareholders’ right by following regulations as stipulated by law. In 2015, the Company had ordinary shareholders’ meeting on April 22, 2015. All Directors attended the meetings NKUV�QH�VJG�%QORCP[¿U�$QCTF�QH�&KTGEVQTU�CVVGPFCPEGU�EQWNF�DG�EJGEMGF�CV�VJG�OKPWVGU�QH�VJG�UJCTGJQNFGTU¿�OGGVKPI��

The Company has policy on equal treatment of shareholders by realizing on the importance of shareholders’ right QP�UWHÌEKGPV�CPF�VKOGN[�KPHQTOCVKQP�FKUENQUWTG��%QPEGTPKPI�UJCTGJQNFGTU¿�OGGVKPI��VJG�%QORCP[�YKNN�KUUWG�PQVKEG�QH�OGGVKPI�which includes details on different meeting’s agendas at least 7 days prior to the meeting date as stipulated by law.

In 2015, Thailand Securities Depository Co., Ltd., which was the Company’s registrar, issued notice of meeting to shareholders at least 7 days in advanced, or 14 days as stipulated by law.

65 In 2015, the Company had issued notice of meeting which included details on different meeting’s agendas prior to the meeting date as stipulated by law, and each agenda contained principles, and reasons and suggestions of the Board of Directors. Moreover, the Company also published shareholders’ notice of meeting, and documents for the meeting in Thai and English language at the Company’s website on http://www.rs.co.th/corporate/th/meeting.htm, and http://www.rs.co.th/corporate/eng/meeting.htm, at least 30 days before the meeting date and the Annual Report was posted in the website at least 7 days before the meeting date, as to facilitate rapid access for shareholders. Minutes of the meetings in 2015 were posted in the website 14 days afterwards. Prior to the start of meeting, Chairman of the meeting had authorized the Company’s Secretary to explain voting procedure to the meeting, and during the meeting, the Chairman gave equal QRRQTVWPKV[�VQ�UJCTGJQNFGTU�KP�CUMKPI�CFFKVKQPCN�SWGUVKQPU��CPF�OCMKPI�UWIIGUVKQPU�RTKQT�VQ�XQVG�ECUVKPI�KP�GCEJ�CIGPFC��Support was also given in using voting paper in case of important agenda for transparency and accountability. Minute of VJG�OGGVKPI�YCU�YTKVVGP�EQTTGEVN[�CPF�EQORNGVGN[�YKVJKP�VJG�URGEKÌE�VKOGHTCOG�CU�UVKRWNCVGF�D[�NCY��CPF�JCF�IQQF�ÌNKPI�U[UVGO�HQT�UJCTGJQNFGTU¿�EJGEMKPI�

In 2015, the Company gave shareholders’ right much more than stipulated by law such as publishing important and updated information through its websites, and not curtailing the shareholders’ right on the Company’s information that had to be disclosed by regulations. Concerning the meeting, no additional meeting agenda, or changing of important KPHQTOCVKQP�YQWNF�DG�EQPFWEVGF�YKVJQWV�RTKQT�PQVKÌECVKQP�VQ�UJCTGJQNFGTU��KPENWFKPI�CFFKVKQPCN�KORQTVCPV�KPHQTOCVKQP�YQWNF�not be distributed abruptly in the meeting, and not limiting shareholders’ right to come in late for the meeting. During the OGGVKPI��VJG�%JCKTOCP�QRGPGF�GSWCN�QRRQTVWPKV[�VQ�UJCTGJQNFGTU�VQ�CUM�SWGUVKQPU��IKXKPI�KFGCU��CPF�OCMKPI�UWIIGUVKQPU�QP�operating results of the Company. Moreover, shareholders were given opportunity to send in their questions in advanced of the meeting date through the Company’s websites, or by mail to the Board of Directors. Thus, rights given to shareholders, CPF�UWRRQTVKPI�UJCTGJQNFGTU�VQ�GZGTEKUG�VJGKT�TKIJVU�YGTG�KP�CEEQTFCPEG�YKVJ�IQQF�EQTRQTCVG�IQXGTPCPEG�RQNKE[�Ę�

Equal Right to Shareholders

For shareholders who cannot attend the meeting, the Company proposes proxies to be given to the Independent Director, who is Chairman of the Audit Committee, to vote on their behalves in the meeting. In the 2015 shareholders meeting, there were 28 shareholders who gave proxy to Chairman of the Audit Committee.

On November 26, 2014, the Company published information through its websites for minority shareholders to propose agenda for the ordinary shareholders’ meeting. This included clear cut regulations in advanced for consideration QP�CFFKVKQPCN�CIGPFC�HQT�OKPQTKV[�UJCTGJQNFGTU�VQ�OCMG�RTQRQUCN��6JG�%QORCP[�CNUQ�TGIWNCVGF�RTQEGFWTGU�HQT�OKPQTKV[�UJCTGJQNFGTU�VQ�RTQRQUG�RGTUQP¿U�PCOGU�HQT�EQPUKFGTCVKQP�CU�&KTGEVQT��CPF�KPENWFKPI�CUUKUVKPI�KPHQTOCVKQP�QP�SWCNKÌECVKQPU��and agreement of the proposed person. However, no shareholder proposed on new agenda, and person’s name for Director.

The Company has established the measure in a written statement to prevent directors, executives, staff members and employees from abusing insider information in the interests of their own or their related parties. By this measure, the Company’s directors, executives, staff members and employees are required to report a transaction that may cause C�EQPÍKEV�QH�KPVGTGUV�DGVYGGP�VJG�QTICPK\CVKQP�CPF�VJGO�QT�VJGKT�TGNCVGF�RCTVKGU�XKC�VJG�FGUKIPCVGF�NCY�QHÌEG�VQ�UETGGP�CPF�HQTYCTF�UWEJ�TGRQTV�EQORNGVGF�YKVJ�KVU�EQOOGPVU�VQ�VJG�$QCTF��CPF�VJG�$QCTF�KU�HWNN[�CWVJQTK\GF�VQ�OCMG�C�FGEKUKQP�QP�CP[�VTCPUCEVKQP��YJKEJ�OC[�ECWUG�C�EQPÍKEV�QH�KPVGTGUV��HQT�VJG�%QORCP[¿U�QXGTCNN�DGPGÌV��6JG�%QORCP[¿U�FKTGEVQTU�CPF�QT�GZGEWVKXGU�YKVJ�VJGKT�KPVGTGUVU�KP�CP[�VTCPUCEVKQPU�UJCNN�DG�DCPPGF�HTQO�RCTVKEKRCVKPI�KP�C�FGEKUKQP�OCMKPI�RTQEGUU�QP�VJQUG�transactions, as detailed in the topic of insider information protection; moreover, related party transactions shall be made in CEEQTFCPEG�YKVJ�TGNGXCPV�TGSWKTGOGPVU�GUVCDNKUJGF�D[�5VQEM�'ZEJCPIG�QH�6JCKNCPF��CU�FGVCKNGF�KP�VJG�VQRKE�QH�RTGECWVKQPCT[�measures or procedures for the approval of related party transactions. The certain policy has been implemented since the [GCT��HQT�DCPPKPI�FKTGEVQTU�CPF�VQR�GZGEWVKXGU��HTQO�DW[KPI�CPF�UGNNKPI�VJGKT�UJCTGU�KP�VJG�%QORCP[�VJTGG�YGGMU�DGHQTG�VJG�RWDNKECVKQP�QH�ÌPCPEKCN�UVCVGOGPVU�CPF�VYQ�FC[U�CHVGT�VJCV�

MEDIA REVOLUTIONIST

Annual Report 2015

The Company has regulation in prohibiting the using of opportunity or information by Director, Executive, or employee HQT�VJGKT�QYP�DGPGÌVU��QT�EQPFWEVKPI�DWUKPGUU�EQORGVKVKQP�YKVJ�VJG�%QORCP[��QT�YKVJ�TGNCVGF�DWUKPGUU��6JKU�KPENWFGU�WUKPI�QH�KPUKFG�KPHQTOCVKQP�HQT�VJG�%QORCP[¿U�UVQEM�VTCFKPI��#NN�TGIWNCVKQPU�JCXG�DGGP�UVCVGF�KP�VJG�EQFG�QH�EQPFWEV�OCPWCN��CPF�discloses in the topic of using of internal information.

4GOCTM��OGCPU�'ZGEWVKXG�CU�RGT�FGÌPKVKQP�QH�VJG�5GEWTKVKGU�CPF�'ZEJCPIG�%QOOKUUKQP�YJQ�KU�TGURQPUKDNG�HQT�EJCPIGU�in shareholding as stipulated by law.

Rights of Stakeholders

� 6JG�%QORCP[�TGEQIPK\GU�VJG�KORQTVCPEG�QH�TKIJVU�HQT�CNN�ITQWRU�QH�UVCMGJQNFGTU�YJGVJGT�HTQO�KPVGTPCN�UVCMGJQNFGTU�UWEJ�CU�GORNQ[GGU�� VJG�%QORCP[¿U�/CPCIGOGPV��CPF� KVU� UWDUKFKCTKGU��QT�GZVGTPCN� UVCMGJQNFGTU�UWEJ�CU�EQORGVKVQTU��ETGFKVQTU��)QXGTPOGPV�CIGPEKGU��CPF�QVJGT�TGNCVGF�RCTVKGU��6JG�%QORCP[�TGCNK\GU�VJG�UWRRQTVKPI�RTGUUWTG�HTQO�UVCMGJQNFGTU�GURGEKCNN[�HTQO�EQOOWPKVKGU�CPF�RWDNKE��KP�YJKEJ�KV�CNYC[U�IKXGU�UKIPKÌECPEG�VQ�VJG�ECWUGU�GZCORNG�ECP�DG�UGGP�HTQO�the Role and Social Responsibility and Human Resources Development Policy). Regulations and procedures are in written format, including rules on disciplinary punishment, so that there will be guideline procedures for related persons i.e. Directors, Management and employees of RS Group etc. to follow when performing duties for the Company with honesty and ethics VQYCTFU�VJG�%QORCP[�CPF�ITQWRU�QH�UVCMGJQNFGTU��&GVCKNU�KP�VJG�%QFG�QH�%QPFWEV�OCPWCN�YJKEJ�EQXGTU�DWUKPGUU�CPF�employee’s code of conduct are as follows:-

Responsibilities toward social and environment

� 6JG�%QORCP[�JCU�VJG�RQNKE[�VQ�EQPFWEV�KVU�DWUKPGUU�HQT�VJG�DGPGÌVU�QH�VJG�GEQPQO[��UQEKGV[��CPF�GPXKTQPOGPV�D[�considering its duties and responsibilities towards the nation, society and environment. Businesses must be operated and controlled completely under the laws and regulations, as well as determinations to press on developing trends for social quality and environment internally or cooperation with Government agencies and communities. Responsibilities toward social and environment must be whole heartedly and consistently promoted to all levels of employees on becoming good EKVK\GPU�YJQ�OCMG�DGPGÌEKCN�EQPVTKDWVKQPU�VQYCTF�EQOOWPKVKGU�CPF�UQEKGVKGU��'ORNQ[GGU�OWUV�CNUQ�DG�UWRRQTVGF�VQ�LQKPVN[�participate in constantly creating activities for communities and societies in order to create good corporate culture in the future. These have to be reviewed, evaluated, and followed up consistently on progress of the company’s operations to ensure that policies on social and environment have been executed as planned (example can be seen from the Role and Social Responsibility and Human Resources Development Policy).

Customer

The Company is determined to distribute quality products and provide quality services to its customers, as well CU�JCXKPI�VJG�UGTXKEG�WPKVU�VQ�VCMG�ECTG��GZRNCKP�CNN�GPSWKTKGU��CPF�TGEQOOGPF�UQNWVKQPU�QP�RTQDNGOU�VQ�EWUVQOGTU�

Shareholders

� 6JG�%QORCP[�KU�TWP�YKVJ�C�IQQF�CPF�GHÌEKGPV�GZRGTVKUG��6JG�EWTTGPV�CPF�HWVWTG�TKUM�KU�ECTGHWNN[�CUUGUUGF�HQT�VJG�DGPGÌV�QH�UJCTGJQNFGTU��CPF�EQPVTQNNGF�VQ�DG�EGTVCKP�VJCV�VJG�QRGTCVKQPCN�TGUWNVU�CPF�ÌPCPEKCN�UKVWCVKQPU�QH�VJG�EQORCP[�CU�well as information to shareholders are completely reported.

Employee

� 6JG�%QORCP[�EQPUKFGTU�GORNQ[GGU�KVU�RTGEKQWU�CUUGVU�CPF�CEMPQYNGFIGU�VJG�XCNWG�QH�GORNQ[GGU��6JG�CRRTQRTKCVG�YGNHCTG�CPF�TGOWPGTCVKQP�CTG�CTTCPIGF�KP�NKPG�YKVJ�VJG�MPQYNGFIG��CDKNKV[��TGURQPUKDKNKV[�CPF�RGTHQTOCPEG�QH�GCEJ�GORNQ[GG��45�ITQWR�CNUQ�TGCNK\GU�VJG�KORQTVCPEG�KP�JGCNVJECTG��UCHGV[��CPF�YQTMKPI�GPXKTQPOGPV�CU�UCHG�RTGECWVKQP�CICKPUV�NKHG�CPF�

67RTQRGTV[�QH�KVU�GORNQ[GGU��CPF�HQNNQYU�QP�VJG�NCDQT�NCYU¿�TGIWNCVKQPU��*GPEG��VJG�%QORCP[�JCU�CTTCPIGF�HQT�JGCNVJ�EJGEM��NKHG�CPF�JGCNVJ�KPUWTCPEGU�HQT�GORNQ[GGU��CPF�EQPUKUVGPVN[�EJGEMU�UCHGV[�KP�VJG�YQTM�RNCEG�VQQ�� The Company’s Board of Directors also considers and approves the policy concerning security, health, and GPXKTQPOGPV�KP�VJG�YQTMRNCEG�� 6JG�%QORCP[�UWRRQTVU�MPQYNGFIG� VTCKPKPI� HQT� KVU�GORNQ[GGU��&KTGEVQTU�CPF�GZGEWVKXGU�� 'ZCORNGU�CTG�WPFGT�topics Social Role and Responsibilities, and Human Resources Development Policy)

Trading Partner and Creditor

� 6JG�%QORCP[� CFJGTGU� VQ� JQPGUV[� CPF� LWUVKEG� VQYCTFU� KVU� VTCFKPI�RCTVPGTU� D[� VCMKPI� KPVQ� EQPUKFGTCVKQP� HQT� VJG�DGUV�DGPGÌVU�VQ�VJG�%QORCP[��CPF�DCUGU�QP�LWUVKÌGF�TGOWPGTCVKQPU�QP�DQVJ�UKFGU��CPF�CXQKFU�DKCU�QT�CP[�EKTEWOUVCPEGU�VJCV�IKXG�TKUG�VQ�VJG�EQPÍKEV�QH� KPVGTGUVU�CPF�WRJQNFU�CPF�EQORNKGU�YKVJ�EQPVTCEVU��VGTOU�QH�CITGGOGPV��CPF�QDNKICVKQPU�VQYCTFU�VTCFKPI�RCTVPGTU�CPF�ETGFKVQTU��6JKU�CNUQ�KPENWFGU�CPVK�EQTTWRVKQP�CPF�CPVK�DTKDGT[�RC[OGPV�VQ�QDVCKP�DGPGÌV�HQT� the Company’s business.

The Company’s criteria for selecting suppliers / vendors / outside service providers as follows:• Quality of product and service• Ability, specialization, expertise, and experience• Trading policy• Business reputation• Financial status

Competitor The Company supports free and fair trade competition as well as treating competitors professionally.

Virtue

The Company is engrossed in doing the rightful things and performing its duties with honesty and straightforwardness KP�CEEQTFCPEG�YKVJ�NGIKUNCVKQPU�CPF�TGIWNCVKQPU��6JKU�EQPFWEV�KU�CRRNKGF�VQ�CP[�CEVKXKVKGU�CPF�FGEKUKQP�OCMKPI��6JG�EQORCP[�QRGTCVGU�KVU�DWUKPGUU�YKVJ�JQPGUV[�CPF�VCMGU�KPVQ�CEEQWPV�VJG�KPÍWGPEKPI�TKUMU��

Equality and Human Rights for All Parties Concerned

The Company neither hinders or withholds the privileges from, nor discriminates against any persons who are different in races, nationalities, religious, genders, age, or education, including non-involvement on any human rights infringement.

Copyright

The Company has the policy on non-violation of any copyright.

� 6JG�%QORCP[¿U�$QCTF�QH�&KTGEVQTU�TGXKGYU�CPF�OCMGU�KORTQXGOGPV�QP�%QFG�QH�%QPFWEV�OCPWCN�QH�45�)TQWR�CV�least once a year. In 2016, the Company’s Board of Directors meeting No. 2/2016, has reviewed, improved and approved RS Group’s Code of Conduct manual, and publishes in the Company’s website. It includes information on new employee’s VTCKPKPI�HQT�CNN�GORNQ[GGU¿�CEMPQYNGFIGOGPV��CPF�EQPVTQNNKPI�RTQEGUU�HQT�UVTKEV�EQORNKCPEG�QP�VJG�%QFG�QH�%QPFWEV� The Company has had the policy that directors, executives and staff members at all levels are required to strictly QDUGTXG�CPF�HQNNQY�VJG�DGUV�RTCEVKEGU�FGUETKDGF�KP�VJG�)TQWR¿U�GVJKEU�JCPFDQQM��+P�VJG�RCUV�[GCT��VJG�%QORCP[�CPF�VJG�UWDUKFKCTKGU�JCF�PQ�NGICN�FKURWVG�VJCV�UKIPKÌECPVN[�CHHGEVGF�VJG�%QORCP[¿U�DWUKPGUU�QT�RQUGF�PGICVKXG�GHHGEVU�QP�VJG�)TQWR¿U�

MEDIA REVOLUTIONIST

Annual Report 2015

assets of which its overall value, as at 31 December 2015, was higher than 5% of shareholders’ equity. The Company and the subsidiaries had no legal dispute arisen from an out-of-the-ordinary course of business of the Group either.

� 6JG�%QORCP[�JCU�CPVKEKRCVGF�KP�UJCTKPI�VJG�FGXGNQROGPV�OGEJCPKUO�YKVJ�UVCMGJQNFGTU�KP�UVTGPIVJGPKPI�QRGTCVKPI�results of the Company. This is to build business security with information transparency, listening to comments, complaints, or suggestions, etc. Action that may lead to fraud or suspected behavior within the organization either from employee or from UVCMGJQNFGT�ECP�DG�TGRQTVGF�FKTGEVN[�VQ�VJG�/CPCIGOGPV��+PVGTPCN�#WFKV�WPKV��+PXGUVQT�4GNCVKQP�WPKV��%QORCP[�5GETGVCT[�QT�Audit Committee as to pass to the Board of Directors through website http://www.rs.co.th/investor.html or through telephone PWODGTU��CPF��GZV��QT�VQ�VJG�UVCVGF�WPKVU�CDQXG��#NN�KPHQTOCVKQP�YKNN�DG�EQNNGEVGF�CPF�EJGEMGF�through the Company’s stipulated process, and will be reported to the Board of Directors.

� %QORNCKPV�EQPEGTPKPI�ÌPCPEKCN�CPF�CEEQWPVKPI�TGRQTVU��KPVGTPCN�EQPVTQN��TKUM�OCPCIGOGPV��EQORNKCPEG�YKVJ�NCY�and code of conduct can be done through the Company’s secretary who receives and summarizes all topics, and quarterly submits to the Audit Committee, and Board of Directors. The Company gives importance to the secrecy of information TGEGKXGF�KP�QTFGT�VQ�DWKNF�EQPÌFGPEG�VQ�UGPFGT��CPF�EQORNCKPV�YKNN�QPN[�DG�MPQYP�VQ�CUUKIPGF�CPF�TGNCVGF�RGTUQPU�

Information Disclosure and Transparency

� 6JG�%QORCP[�IKXGU�VJG�KORQTVCPEG�VQ�GHÌEKGPV�KPVGTPCN�EQPVTQN�U[UVGO�QP�VJG�/CPCIGOGPV�CPF�QRGTCVKQPCN�NGXGNU�� by clearly stipulated the Management’s business authorizations. Assets’ usages are controlled, and responsibilities of operator, EQPVTQNNGT��CPF�GXCNWCVQT�CTG�UGRCTCVGF�HTQO�GCEJ�QVJGT�VQ�ETGCVG�UWKVCDNG�EJGEM�CPF�DCNCPEG�U[UVGO��/QTGQXGT��VJGTG�KU�KPVGTPCN�EQPVTQN�QP�VJG�ÌPCPEKCN�U[UVGO�YKVJ�ÌPCPEKCN�TGRQTV�U[UVGO�TGRQTVKPI�FKTGEVN[�VQ�VJG�TGURQPUKDNG�OCPCIGOGPV�WPKV� The Company’s internal control unit reports directly to the Audit Committee to be certain that the main operations and KORQTVCPV�HKPCPEKCN�CEVKXKVKGU�RTQEGGF�GHÌEKGPVN[�YKVJKP�VJG�FKTGEVGF�IWKFGNKPGU��6JG�%QORCP[�JCU�KVU�RQNKE[�QP�%QORNKCPEG�Control in correspondence with the concerned law and related regulations.

Sub – Committees� 6JG�%QORCP[¿U�$QCTF�QH�&KTGEVQTU�CRRQKPVU�VJG�5WD��%QOOKVVGGU�VQ�OCMG�FGVCKNU�UETGGPKPI�D[�TGIWNCVKPI�VJGKT�responsibilities and scope of duties within each committee.

� /QUV�OGODGTU� QH� VJG� 5WD� ��%QOOKVVGGU� CTG� +PFGRGPFGPV�&KTGEVQTU� GZEGRV� VJG� 'ZGEWVKXG�%QOOKVVGG�� 4KUM�Management Committee, Good Corporate Governance Committee and Human Development Committee and the Chairman of the Board will not hold positions as member in all committees. Moreover, it also regulates Independent Directors as %JCKTOCP�QH�GCEJ�EQOOKVVGG�YKVJ�GZEGRVKQP�KP�VJG�'ZGEWVKXG�%QOOKVVGG��4KUM�/CPCIGOGPV�%QOOKVVGG��)QQF�%QTRQTCVG�Governance Committee and Human Development Committee. At present, the Company has 6 Sub - Committees of VJG�#WFKV�%QOOKVVGG��0QOKPCVKQP�CPF�4GOWPGTCVKQP�%QOOKVVGG��'ZGEWVKXG�%QOOKVVGG��4KUM�/CPCIGOGPV�%QOOKVVGG�� Good Corporate Governance Committee and Human Development Committee.

Details concerning the member’ names, duties, and responsibilities are in topic “Shareholding Structure and Management”.

The Company’s Board of Directors appoints sub-committees in order to assist on corporate governance as follows:-

• Audit Committee has duration of 3 years, and consists of 3 Independent Directors. Names and duties of the Audit Committee are listed in topic “Shareholding Structure and Management”.

The Company’s Board of Directors is in agreement and appoints Mr. Phisit Dachanabhirom, the Independent &KTGEVQT��YJQ�JCU�XCUV�MPQYNGFIG�CPF�GZRGTKGPEGU�KP�ÌPCPEKCN�CPF�CEEQWPVKPI�ÌGNF��VQ�DGEQOG�%JCKTOCP�QH�the Audit Committee.

69 In 2015, the Audit Committee had 6 meetings in which all members attended all meetings and consistently

reported their operating results to the Company’s Board of Directors. There was one meeting that the Audit Committee met privately with the external auditor without the management team being present.

• Nomination and Remuneration Committee

The Company’s Board of Directors meeting No. 3/2007, on February 26, 2007, has appointed the Nomination CPF�4GOWPGTCVKQP�%QOOKVVGG��KVU�UEQRG�QH�CWVJQTKV[��CPF�TGOWPGTCVKQP��6JG�EQOOKVVGG�EQPUKUVU�QH��SWCNKÌGF�persons which has 3 Independent Directors in which one of them is the Chairman of the Nomination and Remuneration Committee, the committee has 3 years duration (details in the “Shareholding Structure and Management”)

In 2015, the Nomination and Remuneration Committee consisted of 3 members in which all of them were Independent Directors.

In 2014, the committee had 2 meetings in which all members attended all meetings. The committee consistently reported their operating results to the Company’s Board of Directors.

Details of important performances in 2015 could be summarized as follows:-1. %QPUKFGTGF�VJG�PQOKPCVKQP�CPF�UGNGEVKQP�QH�SWCNKÌGF�CPF�UWKVCDNG�RGTUQP�CU�TGRNCEGOGPV�HQT�$QCTF�QH�

Directors retired member.2. Considered, reviewed and approved the charter of the Nomination and Remuneration Committee.3. Considered and reviewed the appropriateness of the pattern and criteria of the remuneration.4. Reviewed the annual Directors’ remuneration.5. %QPUKFGTGF�VJG�%JKGH�'ZGEWVKXG�1HÌEGT�GXCNWCVKQP�ETKVGTKC�6. Evaluate the performance of the Nomination and Remuneration Committee in 2015. 7. Reported the performances of the Nomination and Remuneration Committee to the Board of Directors

on regular basis.

The Nomination and Remuneration Committee commented that the stated items were suitable to the utmost long-terO�DGPGÌV�HQT�VJG�%QORCP[��5JCTGJQNFGTU�CPF�5VCMGJQNFGTU�

• 6JG�'ZGEWVKXG�%QOOKVVGG�EQPUKUVU�QH��SWCNKÌGF�RGTUQPU��CPF�VJGKT�PCOGU�CTG� NKUVGF� KP� VJG�Á5JCTGJQNFKPI�Structure and Management” topic.

In 2015, the Executive Committee had total 12 meetings.

Details of important performances in 2015 could be summarized as follows:

1. Made preparation, suggestion, and stipulate guideline on business policy of the Company to the Board of Directors.

2. Stipulate business plans, administration, and approval on the budget for the annual business plan and annual spending budget, and then, proceed as per business plan and business strategy in accordance with the stated business policy, and guideline as stated to the Board of Directors.

3. Direct, control, and supervise on the management so that it would be in accordance with the laid down strategies and plans.

4. 1VJGT�CUUKIPGF�FWVKGU�IKXGP�KP�URGEKÌE�RGTKQFU�D[�VJG�$QCTF�QH�&KTGEVQTU�

The Executive Committee had performed its duties with caution to its full capability and in relation with good corporate IQXGTPCPEG�RQNKE[�CPF�EQFG�QH�EQPFWEV�QH�VJG�%QORCP[¿U�ITQWR�HQT�VJG�DGPGÌV�QH�VJG�%QORCP[��UJCTGJQNFGTU��CPF�UVCMGJQNFGTU�KP�VJG�NQPI�VGTO�

MEDIA REVOLUTIONIST

Annual Report 2015

• �4KUM�/CPCIGOGPV�%QOOKVVGG The Company’s Board of Directors meeting No. 5/2010 on August 16, 2010 had the resolution to appoint, authorize

VJG�UEQRG�QH� TGURQPUKDKNKVKGU�CPF�EQPUKFGT� TGOWPGTCVKQP�QH� VJG�4KUM�/CPCIGOGPV�%QOOKVVGG��6JG�%QOOKVVGG�EQPUKUVGF�QH��SWCNKÌGF�RGTUQPU�

� +P��VJG�%QORCP[¿U�4KUM�/CPCIGOGPV�%QOOKVVGG�JCF��OGGVKPI�YJKEJ�YCU�VQ�RNCP��TGXKGYKPI�VJG�U[UVGO��QT�GXCNWCVG�GHÌEKGPE[�QH�VJG�TKUM�OCPCIGOGPV�


1. %QPUKFGTCVKQP�QP�KORQTVCPV�TKUMU�QH�VJG�%QORCP[��RTQEGGF�YKVJ�TKUM�OCPCIGOGPV�CPF�GXCNWCVKQP�QP�TKUM�OCPCIGOGPV�to be in accordance with strategies and business plan of the Company.

2. 5WRGTXKUG�CPF�UWRRQTV�VJCV�TKUM�OCPCIGOGPV�YCU�CEEQTFKPI�VQ�RNCP�

� 4KUM�/CPCIGOGPV�%QOOKVVGG�JCF�RGTHQTOGF�KVU�FWVKGU�YKVJ�ECWVKQP�VQ�KVU�HWNN�ECRCDKNKV[�CPF�KP�TGNCVKQP�YKVJ�IQQF�EQTRQTCVG�IQXGTPCPEG�RQNKE[� CPF�EQFG�QH� EQPFWEV� QH� VJG�%QORCP[¿U�ITQWR� HQT� VJG�DGPGÌV� QH� VJG�%QORCP[��UJCTGJQNFGTU��CPF�UVCMGJQNFGTU�KP�VJG�NQPI�VGTO�

• Good Corporate Governance Committee

The Company’s Board of Directors meeting No. 1/2011 on February 23, 2011 had the resolution to appoint, authorize the scope of responsibilities and consider remuneration of the Good Corporate Governance Committee. 6JG�%QOOKVVGG�EQPUKUVGF�QH��SWCNKÌGF�RGTUQPU�

In February 2016, Good Corporate Governance Committee has reviewed and improved the Good Corporate Governance Policy and Code of Conduct. The Committee also followed up the compliance of such policies.


1. Reviewed the good corporate governance policy and ethical pamphlet of the RS group of companies.

2. 2TQOQVGF�VJG�CFOKPKUVTCVKQP�YQTMU�VQ�DG�KP�CEEQTFCPEG�YKVJ�VJG�IQQF�EQTRQTCVG�IQXGTPCPEG�RQNKE[�CPF�GVJKECN�pamphlet of the RS group of companies.

3. Given advises on the good corporate governance to the Company’s Board of Directors.

4. Setting up on guidelines and reviewing of report on good corporate governance for presentation in the annual report.

The Good Corporate Governance Committee had the opinion that the stated items were appropriate and for VJG�DGPGÌVU�QH�%QORCP[��UJCTGJQNFGTU��CPF�UVCMGJQNFGTU�KP�VJG�NQPI�VGTO�

• 6JG�*WOCP�&GXGNQROGPV�%QOOKVVGG�EQPUKUVU�QH��SWCNKÌGF�RGTUQPU��CPF�VJGKT�PCOGU�CPF�TGURQPUKDKNKVKGU�CTG�listed in the “Shareholding Structure and Management” topic.


1. Reviewed and developed the policy, and given guidelines on human development.

2. Developed the strategies and techniques on the human development.

3. Supervised and supported operations on human development.

4. Considered and made decisions on issues concerning the human development as per approved guidelines by the Board of Directors.

The Human Development Committee had performed its duties with caution to its full capability and in relation with IQQF�EQTRQTCVG�IQXGTPCPEG�RQNKE[�CPF�EQFG�QH�EQPFWEV�QH�VJG�%QORCP[¿U�ITQWR�HQT�VJG�DGPGÌV�QH�VJG�%QORCP[��UJCTGJQNFGTU��CPF�UVCMGJQNFGTU�KP�VJG�NQPI�VGTO�

71Company Secretary

� 6JG�$QCTF�QH�&KTGEVQTU�JCU�CRRQKPVGF�VJG�%JKGH�1RGTCVKPI�1HÌEGT�VQ�DG�VJG�%QORCP[�5GETGVCT[��6JG�RTGUGPV�%QORCP[�5GETGVCT[�KU�/TU��2QTPRCP�6GEJCTWPIEJCKMWN��6JG�%QORCP[�5GETGVCT[�FWV[�KU�VQ�GPUWTG�VJCV�VJG�%QORCP[�EQORNKGU�YKVJ�VJG�)QQF�%QTRQTCVG�)QXGTPCPEG�QH�VJG�5VQEM�'ZEJCPIG�QH�6JCKNCPF��6JG�OCLQT�TQNG�CPF�FWV[�QH�VJG�%QORCP[�5GETGVCT[�are as following:

• Advice the legal, accounting and tax issue and necessary regulations to the Board of Directors.

• Oversee the Board of Directors’ activities.

• Coordinate the concerned party as to ensure the implementation of the resolutions of the Board of Directors.

� 6JG�%QORCP[�UGETGVCT[�JCU�MPQYNGFIG�KP�DQVJ�VJG�CEEQWPVKPI�CPF�NGICN�CURGEV��JQYGXGT��VJG�%QORCP[�CNUQ�RTQOQVGU�RGQRNG�YJQ�UWRRQTV�VJG�YQTM�QH�VJG�%QORCP[�UGETGVCT[�CPF�VJG�%QORCP[¿U�$QCTF�QH�&KTGEVQTU�VQ�CVVGPF�VJG�Á%QORCP[�5GETGVCT[�2TQITCOÂ�%52��QH�VJG�6JCK�+PUVKVWVG�QH�&KTGEVQTU�+1&��/QTGQXGT��VJG�NGICN�QHÌEG�JCU�DGGP�CUUKIPGF�D[�VJG�%QORCP[�VQ�JGNR�YKVJ�VJG�YQTMU�QH�VJG�$QCTF�QH�&KTGEVQTU�VQ�DG�KP�CEEQTFCPEG�YKVJ�TWNGU��TGIWNCVKQPU��QT�NCY�DWV�JCU�PQV�DGGP�GUVCDNKUJGF�CU�C�URGEKÌE�UWRGTXKUQT[�QRGTCVKQPCN�WPKV��

Director Meeting

The Director meetings are arranged at least quarterly and extraordinary meetings in between as deemed necessary. All meetings have apparently set-out agenda and planned meeting date and are intended to consistently monitor company’s performance. In case that the Company does not have a monthly meeting, the Company has the policy to send the monthly operational report to the Board of Directors, so that the Board of Directors can supervise, and control management’s operations consistently and effectively. Invitation, agenda and information hand-outs are duly distributed 7 days prior to the meeting so directors have a chance to familiarize themselves to the issues. Chairman of the Board of Directors and VJG�%JKGH�'ZGEWVKXG�1HÌEGT�OCMG�FGEKUKQP�QP�CIGPFCU�HQT�VJG�$QCTF�QH�&KTGEVQTU¿�OGGVKPI�YKVJ�GORJCUK\KPI�VJCV�KORQTVCPV�subjects have to be in the meeting agendas. Directors can freely submit agenda and the Board of Directors can access PGEGUUCT[�KPHQTOCVKQP�HTQO�VJG�%JKGH�'ZGEWVKXG�1HÌEGT��+PFGRGPFGPV�&KTGEVQTU��#WFKV�%QOOKVVGG�VJG�FGÌPKVKQP�CPF�SWCNKÌECVKQP�shown in Management Section) have attended all meetings. In 2015, there have been 6 meetings at the Company premises. 'XGT[�FKTGEVQT�CVVGPFU�CNN�OGGVKPIU�GZEGRV�/T��5WTCEJCK�%JGVEJQVKUCM�CPF�#UUQEKCVG�9KVVC[C�&CPVJCOTQPIMWN�FKFP¿V�CVVGPF��OGGVKPI�FWG�VQ�VJG�WTIGPV�VCUM�

� +H�CP[�FKTGEVQT�JCU�UKIPKÌECPV�EQPÍKEV�QH�KPVGTGUV�KP�CP[�CIGPFC��UWEJ�FKTGEVQT�UJCNN�PQV�CVVGPF�VJG�OGGVKPI�FWTKPI�the consideration of that agenda.

Moreover, the Board of Directors’ minimum quorum for meeting resolution must not be less than 2/3 of total number of Directors.

The Company’s Board of Directors has its policy in allowing the non-executive Directors to conduct their own meeting as deem necessary. This is to debate all issues concerning the Management without their present, and the Chief 'ZGEWVKXG�1HÌEGT�YKNN�DG�KPHQTOGF�QH�VJG�OGGVKPI�TGUWNV�

Self - Evaluation on the Performance of the Board of Directors

The Company’s Board of Directors arranges for its self - evaluation annually by using the Company’s self - evaluation form. The Board of Directors will individually and jointly consider their performances for their joint consideration in order to KORTQXG�HQT�OQTG�GHÌEKGPV�QRGTCVKQPU�� 5GNH�¼�GXCNWCVKQP�GNGOGPVU�EQPUKUV�QH�VJG�UVTWEVWTG�CPF�SWCNKÌECVKQP��TQNGU��FWVKGU�CPF�TGURQPUKDKNKVKGU��OGGVKPI��and duties of the Board of Directors, relationship with management, self - development of the Board, and development of Executives.

MEDIA REVOLUTIONIST

Annual Report 2015

Moreover, the Nomination and Remuneration Committee will supply suggestions on regulations for the evaluation on RGTHQTOCPEG�QH�%JKGH�'ZGEWVKXG�1HÌEGT�CPF�RTQRQUG�HQT�VJG�CRRTQXCN�QH�VJG�$QCTF�QH�&KTGEVQTU��4GUWNVU�QH�VJG�RGTHQTOCPEG�YKNN�DG�GXCNWCVGF�D[�VJG�GXCNWCVKQP�HQTO�URGEKÌGF�D[�VJG�0QOKPCVKQP�CPF�4GOWPGTCVKQP�%QOOKVVGG�CPF�VQ�DG�GXCNWCVGF� by the Company’s Board of Directors which only consists of Independent Directors for further improvement.

The Company’s Board of Directors arranged for its self-evaluation every year. On February 24, 2016 in the Company’s Board of Directors’ meeting No. 2/2016, had made annual consideration on self-evaluation of the Company’s Board of Directors of 2015, so that the Company’s Board of Directors could jointly consider the performances, and problems for HWTVJGT�KORTQXGOGPV��4GUWNVU�QP�RGTHQTOCPEG�QH�VJG�%JKGH�'ZGEWVKXG�1HÌEGT�HQT�VJG�[GCT��JCF�DGGP�GXCNWCVGF�D[�VJG�Company’s Board of Directors which consisted of only Independent Directors for further consideration and improvement.

Moreover, the Board of Directors has arranged for performance evaluations for other committees such as the Audit Committee, and the Nomination and Remuneration Committee.

Remuneration

The Company has clearly and transparently stipulated policy on remuneration for Directors and Executives. During the ordinary shareholders’ meeting No. 1/2003, the Company’s Board of Directors’ meeting No. 5/2003 and the Annual General Meeting 2013, remuneration for Directors was approved to be within the similar level of the same industry which was high GPQWIJ�VQ�CVVTCEV�CPF�RTQVGEV�VJG�SWCNKÌGF�&KTGEVQTU�CPF�DG�KP�CEEQTFCPEG�YKVJ�VJG�%QORCP[¿U�QRGTCVKPI�TGUWNVU��(QT�%JKGH�'ZGEWVKXG�1HÌEGT¿U�RGTHQTOCPEG�GXCNWCVKQP��VJG�0QOKPCVKQP�CPF�4GOWPGTCVKQP�%QOOKVVGG�UWRRNKGF�KPRWVU�QP�TGIWNCVKQPU�HQT�VJG�GXCNWCVKQP�QP�RGTHQTOCPEG�QH�%JKGH�'ZGEWVKXG�1HÌEGT�CPF�RTQRQUG�HQT�VJG�CRRTQXCN�QH�VJG�$QCTF�QH�&KTGEVQTU��4GUWNVU�on the performance were evaluated by the Company’s Board of Directors which only consisted of Independent Directors. (Details on remuneration for Directors and Executives were shown in “Shareholding Structure of the Company).

Directors and Executives’ Development

The Company’s Board of Directors has the policy on assigning the present Director to introduce new Director to the Company, and lecturing on the summarization of the Company’s business plan, operating results, strategy, competitive situations, vision, corporate culture, corporate governance, business ethics and other details concerning the Company’s operation etc.

� 6JG�%QORCP[¿U�$QCTF�QH�&KTGEVQTU�JCU�VJG�RQNKE[�VQ�ETGCVG�CPF�FGXGNQR�PGY�MPQYNGFIG�HQT�&KTGEVQTU�CPF�'ZGEWVKXGU�by encouraging them to attend seminars and meetings which provide useful topics that have been arranged by the Thai +PUVKVWVG�QH�&KTGEVQTU��CPF�QVJGT�TGNCVGF�QTICPK\CVKQPU�KP�QTFGT�VQ�UWRRQTV�GHÌEKGPV�QRGTCVKQPU��YKVJ�CNN�EQUVU�VQ�DG�ÌPCPEKCNN[�supported by the Company (details were shown in “Description of Management Team and other persons overseeing the Company”).

Succession plan for the Chief Executive Officer and high level Executives

The Company’s Board of Directors supports the arrangement of succession plan that will assist in smooth operation QH�VJG�%QORCP[��/QTGQXGT��VJG�$QCTF�QH�&KTGEVQTU�CNUQ�OCMGU�RTGRCTCVKQP�HQT�VJG�GZGEWVKXG�FGXGNQROGPV�RTQITCO�HQT�VJG�UWEEGUUKQP�RNCP�QH�VJG�%JKGH�'ZGEWVKXG�1HÌEGT�CPF�JKIJ�NGXGN�'ZGEWVKXGU�KP�ECUG�VJCV�VJG[�ECPPQV�RGTHQTO�VJGKT�FWVKGU��6JKU�KU�VQ�TGFWEG�TKUMU�HTQO�FKU�EQPVKPWCVKQP�KP�EQTRQTCVG�OCPCIGOGPV�YKVJ�VJG�HQNNQYKPI�RTQEGFWTGU�

1. The Executive Board and Human Development Committee have to consider and select high potential Executives for further development and preparation.

2. The Human Development Committee is to develop the assigned group by preparing for the high level development plan for high level Executives.

733. 6JG�'ZGEWVKXG�$QCTF�CPF�*WOCP�&GXGNQROGPV�%QOOKVVGG�YKNN�VQIGVJGT�OCMG�VJG�CRRTQRTKCVG�UGNGEVKQP�QP�

ECPFKFCVGU�HQT�VJG�RQUKVKQPU�QH�VJG�%JKGH�'ZGEWVKXG�1HÌEGT�CPF�JKIJ�NGXGN�'ZGEWVKXGU��(QT�VJG�UGNGEVGF�RQUKVKQP�QH�VJG�%JKGH�'ZGEWVKXG�1HÌEGT��VJG�UGNGEVKQP�YKNN�RTGEGFG�VQ�VJG�0QOKPCVKQP�CPF�4GOWPGTCVKQP�%QOOKVVGG��CPF�the Company’s Board of Directors for consideration.

4. 6JG�0QOKPCVKQP�CPF�4GOWPGTCVKQP�%QOOKVVGG�YKNN�OCMG�EQPUKFGTCVKQP�QP�VJG�RTQRQUGF�RGTUQP�EQPEGTPKPI�VJG�UWKVCDKNKV[��MPQYNGFIG��CPF�EQORGVGPE[�VJCV�YKNN�DGPGÌV�VJG�%QORCP[�YKVJ�QVJGT�PGEGUUCT[�TGNCVGF�KPHQTOCVKQP�for proposal in the Company’s Board of Directors meeting and further appointment.

Investor Relation

� 6JG�%QORCP[¿U�$QCTF�QH�&KTGEVQTU�TGCNK\GU�VJCV�ÌPCPEKCN�CPF�PQP�ÌPCPEKCN�KPHQTOCVKQP�TGUWNV�KP�FGEKUKQP�OCMKPI�KORCEV�QP�KPXGUVQTU�CPF�UVCMGJQNFGTU��6JGP��FKUENQUWTG�QP�KPHQTOCVKQP�OWUV�DG�KORQTVCPVN[�EQTTGEV��EQORNGVG��CPF�CFGSWCVG�VJTQWIJ�XCTKQWU�OGFKC�EJCPPGNU�QH�VJG�5VQEM�'ZEJCPIG�QH�6JCKNCPF��CPF�VJG�%QORCP[¿U�YGDUKVG��/QTGQXGT��OGGVKPIU�JCXG�been arranged between the Company’s Management team and securities analysts, and general investors in order to have question and answer sessions equally.

Hence, the Company assigns the “Investor Relation Unit” to communicate and provides services on information, corporate news, and Company’s various activities to institutional investors, shareholders, analysts, related Government agencies, and the general public. Investors can contact this unit at

Telephone No. 0-2938-4307 and 0-2511-0555 ext 1496 Website : http://www.rs.co.th/investor.html Facebook Fanpage : � JVVR��YYY�HCEGDQQM�EQO�RCIGU�4U�KT��Twitter : https://twitter.com/RS_IR Email Address : [email protected]

Moreover, in 2015, the Company published information through many activities such as:-

• Analyst Meeting to announce the Company’s operating results in every quarter. The analysts had QRRQTVWPKV[� VQ� CUM� SWGUVKQPU� QP� XCTKQWU� VQRKEU�YKVJ� VJG�/CPCIGOGPV�YKVJ� VJG�OGGVKPI¿U� FQEWOGPVU� to be published in the Company’s website.

• 2CTVKEKRCVG�KP�GXGPVU�QTICPK\GF�D[�VJG�5VQEM�'ZEJCPIG�QH�6JCKNCPF�CPF�ÌPCPEG�EQORCPKGU�HQT�OGGVKPIU�YKVJ�institutional, and foreign investors such as Day with Executive Management by Phatra, SET Thai Corporate Day ��6JCK�%QTRQTCVG�&C[�KP�6QM[Q�D[�6JCPCEJCTV��%KVK�#UGCP�%QPHGTGPEG��GVE��6Q�TGRQTVU�QRGTCVKPI�TGUWNVU�including provides an opportunity for investors to meet the Executives and question Executives on various issues. Minute of the meeting was published in the Company’s website. Report on annual form F 56-1, and the annual TGRQTV�(��YGTG�RWDNKUJGF�VJTQWIJ�5'6�%QOOWPKV[�2QTVCN�5%2��U[UVGO�QH�VJG�5VQEM�'ZEJCPIG�QH�6JCKNCPF��CPF�through the Company’s website. The annual report will be delivered to shareholders and general public annually.

Nomination of Directors and Executives The Board of Directors Meeting No. 3/2007 held on February 26, 2007 had its resolution to appoint the Nomination and Remuneration Committee and also approved the responsibilities of the Nomination and Remuneration Committee. Hence, personnel selection for the company’s Director must proceed through the Nomination and Remuneration Committee. The Director’s selection procedures must be done by the Nomination and Remuneration Committee whose consideration YKNN� DG�DCUGF�CU�RGT�SWCNKÌECVKQP� KP� UGEVKQP��QH� VJG�2WDNKE�%QORCP[�.KOKVGF�#EV�$�'�� CPF� VJG� TGNCVGF�announcements of the Securities and Exchange Commission. Moreover, considerations will be based on ability, experiences, MPQYNGFIG��CPF�URGEKÌE�UMKNN�HQT�VJG�DGPGÌV�CPF�FGXGNQROGPV�QH�EQORCP[¿U�DWUKPGUU��CPF�FGFKECVKPI�VJGKT�VKOGU�CPF�GHHQTVU�in conducting their duties. Then, the list will be submitted to the Board of Directors and shareholders’ meeting for approval.

MEDIA REVOLUTIONIST

Annual Report 2015

To appoint the Board of Directors, the shareholders’ meeting appoints the director based on majority scores with the following regulations and guidelines:

(A) The voting score of each shareholder is equal: one share equals one score

(B) Shareholders can vote for each directorial appointment.

(C) Persons who receive the highest scores will be appointed to the committee. In the case of any persons receiving ��GSWCN�UEQTGU��VJG�PQOKPCVKQP�RTGUKFGPV�YKNN�OCMG�VJG�ÌPCN�FGEKUKQP�

Diversity policy in the Board of Directors’ structure

6JG�%QORCP[�$QCTF�QH�&KTGEVQTU�JCU�UVKRWNCVGF�VJG�SWCNKÌECVKQP�HQT�FKTGEVQT�TGETWKVOGPV�UQ�VJCV�KV�YKNN�EQTTGURQPF�with the business operations’ strategy of the Company, and contains diversity for those who perform their duties as directors. %QPUKFGTCVKQP�YKNN�DG�OCFG� HQT� VJG�OKUUKPI�UMKNN�RTGUGPVGF� KP� VJG�$QCTF�QH�&KTGEVQTU� KPENWFKPI�RTQHGUUKQP�� URGEKCNK\GF�UMKNN��CPF�IGPFGT��GVE��*GPEG��KP��VJG�$QCTF�QH�&KTGEVQTU�EQPUKUVU�QH��HGOCNG�+PFGRGPFGPEG�&KTGEVQT�VQ�CFF�XCTKGV[�in the Board of Directors’ structure. Moreover, the Board of Directors also uses the information in the director pool to UGCTEJ�HQT�VJG�PGY�FKTGEVQT�DWV�VJG�SWCNKÌECVKQP�KU�UVKNN�PQV�UWKVCDNG�VQ�VJG�%QORCP[�CV�VJG�VKOG��+P�VJG�FKTGEVQT�TGETWKVOGPV�� VJG�$QCTF�QH�&KTGEVQTU�RTGRCTGU�VJG�$QCTF�5MKNN�/CVTKZ�VQ�URGEKH[�SWCNKÌECVKQP�QH�VJG�TGSWKTGF�FKTGEVQT�YKVJ�EQPUKFGTCVKQP�HTQO� business operations’ strategy of the Company.

The Board of Directors Independence from Management

The Company’s Board of Directors consists of 4 non-Executive Directors (3 Independent Directors), and 5 Executive Directors, details of each Directors are shown in topic “Description of Management Team and Other Persons Overseeing the Company”

Chairman of the Board of Directors is the same person as the Chairman of Executive Committee, and represents major group of shareholders. However, as structure of the Company’s Board of Directors consists of 1/3 of Independent &KTGEVQTU��VJGTG�KU�EJGEM�CPF�DCNCPEG�KP�DWUKPGUU�QRGTCVKQPU�

� 6JG�%QORCP[¿U�$QCTF�QH�&KTGEVQTU�CEMPQYNGFIGU�VJCV�VJG��+PFGRGPFGPV�&KTGEVQTU�JCXG�SWCNKÌGF�CU�RGT�TGIWNCVKQPU�stipulated by the Company as in details from “Management Structure of the Company”. The Company’s Board of Directors is KP�CITGGOGPV�CPF�CRRQKPVU�/T��2JKUKV�&CEJCPCDJKTQO��VJG�+PFGRGPFGPV�&KTGEVQT��YJQ�JCU�XCUV�MPQYNGFIG�CPF�GZRGTKGPEGU�KP�ÌPCPEKCN�CPF�CEEQWPVKPI�ÌGNF��VQ�DGEQOG�%JCKTOCP�QH�VJG�#WFKV�%QOOKVVGG�

Suitability of the Board of Directors

� 6JG�%QORCP[¿U�$QCTF�QH�&KTGEVQTU�JCU�UVKRWNCVGF�UWKVCDNG�SWCNKÌECVKQPU�HQT�RGTUQPU�VQ�JQNF�VJKU�RQUKVKQP�CU�RGTUQP�YKVJ� MPQYNGFIG�� GZRGTKGPEGU�� CPF� URGEKÌE�ECRCDKNKV[� HQT�%QORCP[¿U�DGPGÌV�� 6JKU� KPENWFGU�FQPCVKPI� VKOG�� MPQYNGFIG��capability, and effort in performing duty for the Company. There is also regulations for all Directors and high level Executives (**) to report their securities holding consistently to the Company’s Board of Directors. Director, in the Company’s Board of Directors, is not allowed to hold position as Director in the registered companies of more than 3 companies, and Executive Director is not allowed to hold position as Director in other registered companies of more than 2 companies. This includes holding position as Director of the Company’s Chairman of Executive Committee, and high level Executive (**) in other registered companies must be approved by the Company’s Board of Directors beforehand. Director or the high level executive of the Company must not be employed as employee or partner of the Company’s external auditor company during the past 2 years.4GOCTM��OGCPU�'ZGEWVKXG�WPFGT�FGÌPKVKQP�QH�VJG�5�'�%�

75The Board of Directors’ Efficiency in Performing Its Duties

Policy Stipulation

The Company’s Board of Directors participates in regulating vision, mission, duty, strategy, target, business plan, and budget of the Company. This also includes supervision on the Management team to proceed as business plan, and CITGGF�DWFIGV�GHÌEKGPVN[�CPF�GHHGEVKXGN[��CTTCPIGOGPV�QP�IQQF�EQTRQTCVG�IQXGTPCPEG�RQNKE[��KPVGTPCN�EQPVTQN�U[UVGO��KPVGTPCN�CWFKVKPI�CPF�UWKVCDNG�TKUM�OCPCIGOGPV�CPF�RQNKE[��KPENWFKPI�EQPUKUVGPVN[�HQNNQY�WR�QP�QRGTCVKPI�RGTHQTOCPEGU�KP�VJG�$QCTF�QH�&KTGEVQTU¿�OGGVKPI��/QTGQXGT��VJG�$QCTF�QH�&KTGEVQTU�JCU�VQ�OCMG�EQPUKFGTCVKQP�QP�TGIWNCVKQPU�CPF�UGRCTCVKQP�QH�FWVKGU��and responsibilities clearly among the Board of Directors, Audit Committee, Nomination and Remuneration Committee, 4KUM�/CPCIGOGPV�%QOOKVVGG��)QQF�%QTRQTCVG�)QXGTPCPEG�%QOOKVVGG�� 'ZGEWVKXG�%QOOKVVGG��*WOCP�&GXGNQROGPV�%QOOKVVGG�CPF�VJG�%JKGH�'ZGEWVKXG�1HÌEGT�� In The Board of Directors Meeting No. 2/2016 on 24 February 2016. The Board of Directors has to review, and approve the Company’s vision and mission at least once in every year.

Management Supervision

� 6JG�%QORCP[¿U�$QCTF� QH�&KTGEVQTU� JCU� VQ�OCMG� GXCNWCVKQP� QP� CFGSWCE[� QH� KPVGTPCN� EQPVTQN�� CPF� TGUWNV� QP� TKUM�OCPCIGOGPV�CPF�EQORNKCPEG�YKVJ�VJG�IQQF�EQTRQTCVG�IQXGTPCPEG�RQNKE[�CV�NGCUV�QPEG�C�[GCT��1P�(GDTWCT[�� the Company’s Board of Directors meeting No. 2/2016 has evaluated on the adequacy of internal control, result on TKUM�OCPCIGOGPV�CPF�EQORNKCPEG�YKVJ�VJG�IQQF�EQTRQTCVG�IQXGTPCPEG�RQNKE[�

Supervision on the Operations of subsidiaries and associated companies

For the appointment of Directors for subsidiaries and associated companies, the nomination and voting are under the management from 2014 onwards, and has to receive approval from the Company’s Board of Directors. Persons who are appointed as Directors for subsidiaries and associated companies have the duties to operate for the best interest of the subsidiaries and associated companies. The appointed Directors require approval from the Company’s Board of Directors RTKQT�VQ�OCMKPI�TGUQNWVKQP��QT�XQVKPI�QP�KORQTVCPV�KUUWG�VJCV�KU�QP�VJG�UCOG�NGXGN�VJCV�TGSWKTGU�CRRTQXCN�HTQO�VJG�$QCTF�QH�Directors if this is operated by the Company itself.

Moreover, in case of the subsidiaries, the appointed persons have to oversee that the subsidiaries have regulations EQPEGTPKPI�VTCPUCEVKQPU�QH�TGNCVGF�EQORCPKGU��YKVJ�FCVC�EQNNGEVKQP��CPF�CEEQWPVKPI�TGEQTF�VJCV�ECP�DG�XGTKÌGF��CPF�EQORNKGF�HQT�VJG�ÌPCPEKCN�UVCVGOGPV�QP�VKOG��CU�YGNN�CU�CRRTQRTKCVG�CPF�EQPEKUG�KPVGTPCN�EQPVTQN�U[UVGO�

During 2015, the Company has conformed to the Good Corporate Governance except for the following instant:

1. Did not disclose the Executive Directors’ remunerations that had been received as Directors from other companies as it is not information of the Company.

2. 6JG�%JCKTOCP�YCU� VJG� UCOG�RGTUQP� CU� VJG�%JKGH� 'ZGEWVKXG�1HÌEGT�� CPF�YCU� VJG�OCLQT� UJCTGJQNFGTU¿�representative. However, the Company Board of Directors’ structure consisted of 1/3 of Independent Directors, thus, creating the balance and review in the business operations that showed transparency and compact management.

MEDIA REVOLUTIONIST

Annual Report 2015

Monitoring Internal Use of Internal Information

The Company has explained to the administrators their responsibilities in reporting the number of shares in the company owned by them, their spouses and their children who are considered as minors, and any changes made to the JQNFKPIU��VQ�VJG�5VQEM�'ZEJCPIG�QH�6JCKNCPF��KP�CEEQTFCPEG�YKVJ�#TVKENG��YJGTG�VJG�RGPCNV[�KU�KPFKECVGF�KP�#TVKENG��of the Securities and Exchange Act B.E. 2535 (1992). Apart from the legislative measures, the company has the policy covering the internal information usage written in the Code of Conduct for the group, approved by the Board of Directors on March 1, 2006, to serve as a guideline to all directors, management and employees. The Code of Conduct was latest reviewed, improved and approved by the resolution of the Board of Directors Meeting No. 2/2016 held on February 24, 2016.

In addition, the Company has laid out rules and regulations on the use of the company’s internal information as follows:

1. The Director, Executive, staff members and the employees of the company are obliged to treat the internal KPHQTOCVKQP�QH�VJG�%QORCP[�YKVJ�EQPÌFGPVKCNKV[��

2. The Director, Executive, staff members and the employees of the Company should not directly or indirectly FKUENQUG�EQPÌFGPVKCN�QT�KPVGTPCN�KPHQTOCVKQP�QH�VJG�%QORCP[�HQT�VJG�RGTUQPCN�DGPGÌV�QH�CP[�KPFKXKFWCN��

3. The Director, Executive, the staff members and the employees of the Company should not buy, sell, transfer QT�TGEGKXG�VJG�EQORCP[¿U�CUUGVU�D[�WUKPI�VJG�EQPÌFGPVKCN�QT�KPVGTPCN�KPHQTOCVKQP�VJCV�OC[�ECWUG�FKTGEV�QT�indirect damage to the Company.

The above mentioned regulations include the spouses and children who are considered minors of the Board of Directors, the staff members and employees of the company. Any violation of the Company’s regulations would be considered as a serious breach of those regulations which could lead to a penalty ranging from a verbal warning to being CUMGF�VQ�NGCXG�VJG�EQORCP[��

� 5KPEG��VJG�%QORCP[¿U�$QCTF�QH�&KTGEVQTU�JCU�URGEKÌGF�VJG�RQNKE[�HQTDKFFKPI�&KTGEVQTU��CPF�JKIJ�NGXGN�'ZGEWVKXGU� VQ�VTCFG�VJG�%QORCP[�UVQEM�FWTKPI�VJG�RGTKQFU�QH��YGGMU�DGHQTG�RWDNKUJKPI�QH�VJG�ÌPCPEKCN�UVCVGOGPVU��CPF��FC[U�CHVGT�FKUENQUKPI�QH�VJG�ÌPCPEKCN�UVCVGOGPVU��

Auditor Remuneration

Remuneration from auditing service

The Company and its subsidiaries have paid the audit fees to PricewaterhouseCooper ABAS Co., Ltd., the Company’s auditing company for the year 2015, that includes person or business related to the auditors and auditing QHÌEG�WPFGT�VJG�CWFKVKPI�EQORCP[�FWTKPI�VJG�RCUV�[GCT��VQ�VJG�COQWPV�QH�$CJV��/KNNKQP�YJKEJ�UGRCTCVGU�KPVQ�$CJV��Million from the Company, and Baht 2.61 Million from its subsidiaries.

Non-Audit Fee

-Nil-

2Responsibilities toward

society, environment, and related persons

MEDIA REVOLUTIONIST

Annual Report 2015

Responsibilities toward society, environment, and related persons The company supports sustainable development with responsibilities toward society, environment, and related persons which go along company’s vision that divide into group activities shown below.

1. Equitable business practices

The Company strives for legitimacy practice, and performs its duties with honesty and straight forwardness under VJG�%QORCP[¿U�TWNGU�CPF�TGIWNCVKQPU�CPF�RGTHQTOU�VJG�DWUKPGUU�GVJKEU� KP�CNN� KVU�CEVKXKVKGU�CPF�FGEKUKQP�OCMKPIU�QH� VJG�Company.

2. Complying with laws and human rights

The Company stresses the importance on complying with laws and human rights by adhering on its business practises to be in accordance with laws. This also includes the human rights which is the basic rights of all human beings who are born with equality with the same honour, and privilege without deprivation or non-allowance of any special rights, QT�CP[�FKUETKOKPCVKQP�FWG�VQ�VJGKT�FKHHGTGPEGU�QP�TCEGU��PCVKQPCNKVKGU��TGNKIKQPU��UGZGU��EQNQWT�QH�VJGKT�UMKPU��CIGU��NCPIWCIGU��or educational institutions, and including other items unrelated to the discrimination on human rights.

3. Equal treatment to the labour force

The Company is well realized that all employees are the most valuable asset of the Company, and are the most important factor in pushing the Company to achieve its goals. Hence, the Company has emphasized on fair treatment and FGÌPKPI�RNCP�HQT�JWOCP�FGXGNQROGPV�KPVQ��NGXGNU�UWEJ�CU�VJG�QTICPK\CVKQP�FGXGNQROGPV��ECTGGT�FGXGNQROGPV��CPF�VTCKPKPI�development.

“RS creates entertainment products with social

responsibility”

Society

Employee

Economic Gro

wth

Environment

791. Organization Development The Company promotes the building of corporate culture within its group of companies

starting from new employee orientation through “Welcome Day” activity.2. Career Development The Company has stipulated the career path and promotion path for employees, including

stipulation on duration for management training hours for each group of employees to be promoted as management. 3. Training Development Training and development is stipulated by using the “Competency Base Training” together

with research on the “Training Need” with development methods on both public training, and In-house training. 6JGUG�VTCKPKPIU�EQXGT�QP�VJG�-PQYNGFIG�&GXGNQROGPV��#VVKVWFG�&GXGNQROGPV��CPF�5MKNN�&GXGNQROGPV��'ZCORNGU�are the “RS Revolution Camp”, “How to use the Lotus Note program”, Learning to use the “Axapta” accounting U[UVGO��Á%JCPIG�/CPCIGOGPV�VJTQWIJ�45�/GFKC�4GXQNWVKQPÂ��Á+PVGTXKGY�5MKNN�6GEJPKSWGUÂ��Á%QR[TKIJVU�.CYÂ��“AEC preparation: Business English, English Conversation & E-Mail Writing”, “CCM Team Building”, all consisting from operation personnel up to the management level.

Moreover, during 2015, activities to promote and develop its human resources in many important aspects have been arranged by the Company and subsidiaries such as:

1. #RRTQRTKCVG�JGCNVJ�EJGEM�WR�RTQITCO� HQT�GORNQ[GGU¿�CPPWCN�JGCNVJ�EJGEM�WR� VJCV� KPENWFGU�PGIQVKCVKQP�YKVJ�JQURKVCN� HQT�URGEKCN�RTKEG�QP�CFFKVKQPCN�JGCNVJ�EJGEM� KVGOU�CPF� KPENWFKPI�JGCNVJ�EJGEM�WR�D[�JQURKVCN�CV� VJG�%QORCP[¿U�QHÌEG�

2. 'ORNQ[GG¿U�YGNHCTG�DGPGÌVU�UWEJ�CU�OGFKECN�GZRGPUGU¿�YGNHCTG�VJTQWIJ�NKHG�CPF�CEEKFGPV�ITQWR�KPUWTCPEG��ÌPCPEKCN�YGNHCTG��CPF�QVJGTU��UWEJ�CU�ÌPCPEKCN�YGNHCTG�HQT�HWPGTCN��KP�ECUG�QH�FGCVJ��CPF�KP�ECUG�QH�FGCVJ�HQT�GORNQ[GG¿U�HCVJGT��OQVJGT��EJKNF��QT�NCYHWN�URQWUG��ÌPCPEKCN�JGNR�HQT�OCTTKCIG��QTFKPCVKQP��GVE�

3. Engagement activities for employees such as the New Year activity etc.4. #TTCPIGOGPV�QP�UGOKPCT�EQPEGTPKPI�UCHGV[�CPF�UCPKVCVKQP� KP� VJG�YQTM�RNCEG�D[�UWRRN[KPI�MPQYNGFIG��PGYU�

VJTQWIJ�XCTKQWU�OGFKC�YKVJKP�VJG�QTICPK\CVKQP��CPF�CNUQ�CEVKXKV[�QP�VJG�CPPWCN�ÌTG�FTKNNU�

4. Responsibilities toward customer and consumer

The Company determines to create and produce all types of media and entertainment portfolios for continuous UCVKUHCEVKQP�VQ�VJG�EWUVQOGTU��FKUVTKDWVKQP�QH�SWCNKV[�RTQFWEVU�CPF�UGTXKEGU�VQ�EWUVQOGTU�CU�YGNN�CU�UWRRN[KPI�VJG�YQTMKPI�unit to give services, care, explanation on queries and various problem-solving for customers.

5. Roles and Responsibilities toward Community, Environment, and the General Public.

� 6JG�%QORCP[�CFJGTGU�VQ�EQPFWEV�KVU�DWUKPGUU�HQT�DGPGÌV�QH�VJG�GEQPQO[��UQEKGV[��CPF�GPXKTQPOGPV�YKVJ�EQPUKFGTCVKQP�on its duty and responsibility towards the country, society, and environment as well as operating and controlling its business completely under the scope of laws and other related regulations. This also includes determination in driving trend for the quality development of society, and environment on its own and by cooperation with the government and community. Responsibility towards society and environment must wholeheartedly and continuously be promoted to all levels of employees into becoming good and valuable citizen of the communities and society. Supports are to be given constantly to employees for participation in various activities for the communities and society in establishing good corporate culture in future.

Activities on the Corporate Social Responsibility in 2015

MEDIA REVOLUTIONIST

Annual Report 2015

RS Public Company Limited has continue its activity on the “RS Birthday Charity 2015” under the “RS IKXG�DCEMÂ� RTQLGEV� D[� QRGPKPI� QRRQTVWPKVKGU� VQ� CTVKUVU��actors and actresses, and RS employees who are having DKTVJFC[U� QP� XCTKQWU�OQPVJU� VQ�OCMG� VJGKT� DKTVJFC[U¿�merit donations to various agencies and organizations that need helps throughout the year. These activities are such as giving lunch and donating essential materials to VJG�Á$CCP�0QMMCOKP�(QWPFCVKQPÂ�KP�,CPWCT[��XKUKVKPI�CPF�FQPCVKPI�GUUGPVKCN�OCVGTKCNU�VQ�UKEM�UQNFKGTU�KP�VJG�Á8GVGTCPU�General Hospital” in March, arrangement for the merit OCMKPI��IKXKPI�CYC[� VTGCVU�CPF�GPVGTVCKPOGPV� UJQYU� VQ�VJG�XKUWCNN[�KORCKTGF�RGTUQPU�CV�VJG�Á$CPIMQM�5EJQQN�HQT�the Blind” in July, blood donation at the “National Blood Center” of the “Thai Red Cross Society” in August, and activity in entertaining and donating necessary materials to the Dindaeng “Social Service Center for the Elders” in October, etc.

Objectives : 1. To provide assistance to individuals, organizations

and various charities.2. To give moral support to children, elders, disabled

people, and other chronically ill patients who suffer HTQO�CHÍKEVKQP�CPF�TGSWKTG�CUUKUVCPEG�

3. To encourage interested artists, actors and actresses and other employees to continuously participate in helping society.

4. To give artists, actors and actresses some parts in participating in building good deeds and good role model to the general public.

5. To encourage employees to feel committed to the organization.

“RS Birthday Charity 2015”

Activity Details :

The activities aim to give entertainment, food, or material as the moral supports to agencies and various organizations that need help such as the Thai Red Cross Society, Baan 0QMMCOKP�(QWPFCVKQP��8GVGTCPU�)GPGTCN�*QURKVCN��%QOOWPKV[�5GTXKEG�%GPVGT��$CPIMQM�5EJQQN� HQT� VJG�$NKPF��4CLXKVJK�*QOG�for Girls, Foundation for the Slum Child Care, Children Hospital, etc. This gives opportunity to artists, actors and actresses, news announcers, and employees who have birthday in those RCTVKEWNCT�OQPVJU�VQ�RCTVKEKRCVG�KP�OCMKPI�IQQF�FGGF��CPF�CU�C�MKPF�QH�OGTKV�OCMKPI�CU�YGNN�

81

The television Channel 8 has arranged an activity called “Channel 8 Share To Child” which has been led by Dr. Ong-Art Sinlumpong, Managing Director of Television Business Channel 8 together with artists, actors and actresses such as Mod-Napaphat, Kanomjean-Kulamart, 'CPI�5KVJC��/WPIMQTP�2CRJCYKP�� .CNC�� .WNW�� $CKVQG[��(Suteewan Thaveesilp), Yada-RSiam, Alice-Chayada, 0CEJCV�9WPPCGUC�� (CTUCK�1TPLKTC��/KK�0CMQTP��/CTM�Apivich and Farr- Sariya, etc. Financial donation has been made with lunch, donation of materials that create fun and enjoyment and also treating food for 150 children at the Home for Children with Disabilities at Nonthapoom home KP�2CMMTGF��

Objectives : 1. Encouraging interested artists, actors and actresses

and employees to continuously participate in helping society.

2. Encouraging interested artists, actors and actresses KP�IGPGTCVKPI�VTGPF�KP�VJG�OCMKPI�QH�IQQF�FGGF�CPF�becoming a good role model to the general public.

3. Creating participation in public relation activity for the television channel 8 as a leading television channel in engaging in useful activity for society.

Activity Details : This is to create activities with many children homes that need help and support by introducing artists to generate fun and entertainment to children on Children Day. Also moral support with donations of materials and ÌPCPEKCN�EQPVTKDWVKQP�CTG�DGKPI�KPENWFGF�

“Channel 8 Share To Child” sharing love on “Children Day” with children at Nonthapoom home.

81

MEDIA REVOLUTIONIST

Annual Report 2015

RS Public Company Limited, together with the VQWTKUV�RQNKEG�YKVJ�0QQ�.GM��$GPLCYCP�CPF�1TO�2NQGPUKNR�QT�$NWGDGTT[�DCPF�45KCO��CPF�QVJGT�CUUQEKCVGF�PGVYQTM�JCXG� LQKPGF�KP�YCNMKPI�GXGPV� HQT� VJG�Á��&CPIGTQWU�&C[Â�ECORCKIP�D[�FKUVTKDWVKPI� VJG� UCHGV[�5CPVC� UQEM�FWTKPI�the Christmas and New Year 2016 periods at the BTS UM[YCNM�QH�VJG�#OCTKP�UJQRRKPI�RNC\C��6JKU�KU�VQ�GPEQWTCIG�tourists and general public to travel with cautious and live consciously during the long holiday of 7 dangerous days.

Objectives :

1. The campaign calls on everyone to emphasize on

safe holiday travelling by cars during the long festive

holiday during the New Year.

2. Building good relationship with the general public

and agencies or organizations that serve the public.

3. To encourage artists, actors and actresses in

RCTVKEKRCVKPI�QP�VTGPF�KP�OCMKPI�QH�VJG�IQQF�FGGF�and as a role model to general public.

Baitoey RSiam and Eang- Sitha, actor from Channel 8 as presenters of the World Aids Day distribute the red ribbon logo to General Prawit Wongsuwon, the Deputy Prime Minister on Security, on the World Aids Day to stress the public on protection against aids under the slogan “Early detection, Fast treatment, End AIDS”.

Campaign for the “7 Dangerous Days”

Other social activit ies during the year 2015

Activity Details :

� 9CNMKPI�CEVKXKV[�QP�ECORCKIP�RTKQT�VQ�VJG�NQPI�JQNKFC[�RGTKQFU�UWEJ�CU�5QPIMTCP��0GY�;GCT�KP�QTFGT�VQ�UVTGUU�QP�VJG�recommendations and safeguards on safety during holiday

travels.

83

Jean- Gavalin,Ice-Walaput Petsathit, and Fai- Walulee Ditsayabuth, CEVQT�CPF�CEVTGUUGU�HTQO�UGTKGU�Á�/QPIMWV�Ritsaya” from Channel 8, invite public to buy “DorgKaew -WNC[CÂ�YJKEJ�KU�VJG�NQIQ�ÍQYGT�QP�VJG�&KUCDNGF�&C[��#NN�donations are to be used for the development and support on career promotion of the disables nationwide, and to be donated to Her Majesty Prince’s Kalayaniwattana on the occasion of the National Disabled Day.

Bank-Athikit volunteers to donate blood in helping other people by inviting Thai to donate blood as a protection against blood shortage in the “World Blood Donor Day”. The campaign is to encourage blood donation in every 3 months or 4 times a year under the slogan “Give freely, give often; Blood donation matters” so that blood supply YKNN�DG�UWHÌEKGPV�HQT�TGEGKXGTU�CPF�CNUQ�TGUWNVKPI�IQQF�JGCNVJ�to donors as well.

Lulu-RSiam, Eang- Sitha, Fang-Tanunthorn, artists from UGTKGU�Á&QTM�5QTPEJQQÂ�HTQO�%JCPPGN��KPXKVG�6JCK�VQ�DW[�VJG�/CJKFQN� ÍCI�QP� VJG�QEECUKQP�QH� VJG� Á/CJKFQN�&C[Â�� #NN�KPEQOGU�HTQO�FKUVTKDWVKQP�QH�VJG�ÍCIU�CTG�VQ�DG�FQPCVGF�to the “Siriraj Foundation” to help the underserved patients and purchase medical equipment and other necessary materials for a better quality of life of patients.

83

MEDIA REVOLUTIONIST

Annual Report 2015

6. Environmental Management The Company has promoted in establishing campaign and building conscious among employees on conservation, CPF�WUKPI�TGUQWTEGU�CPF�GPGTI[�ENGXGTN[�CPF�GHÌEKGPVN[��6JKU�CNUQ�KPENWFGU�UWRRQTV�CPF�ETGCVGU�CEVKXKVKGU�VJCV�CTG�DGPGÌEKCN�for the preservation, conservation, and on continuously consuming natural resources, environment, and various energy UQWTEGU��6JKU�KU�GZGEWVGF�D[�RTQOQVKPI�QP�ECORCKIPU�CPF�DWKNFKPI�LQKPV�EQPUEKQWU�KPVQ�TGCNK\KPI�VJG�DGPGÌV��XCNWG��CPF�GHÌEKGPVN[�EQPUWOKPI�TGUQWTEGU�YJKEJ�KPENWFGU�GNGEVTKEKV[�WUCIG�EQPUGTXCVKQP�D[�UYKVEJKPI�QHH�NKIJV�UYKVEJGU��CPF�GNGEVTKECN�CRRNKCPEGU�CHVGT�GCEJ�WUCIG��VWTP�QHH�NKIJV�UYKVEJGU�FWTKPI�NWPEJ�DTGCM��VWTP�QHH�VJG�CKT�EQPFKVKQPKPI�WPKVU�JCNH�CP�JQWT�DGHQTG�NGCXKPI�QHÌEG��WUKPI�UVCKTU�KPUVGCF�QH�VJG�GNGXCVQT��YCVGT�EQPUGTXCVKQP�D[�JCXKPI�QHÌEKCN�VQ�OQPKVQT�NGCMCIGU�QH�GSWKROGPV��oil conservation by prior planning before any journey, using e-mail instead of using paper document delivery, and also KPENWFKPI�QVJGT�GPGTI[� TGUGTXCVKQP� KP� VJG�YQTM�RNCEG�UWEJ�CU�WUKPI��UKFGU�QH�RCRGT��GVE��#RCTV� HTQO�EQPUVCPV�RWDNKE�relation campaign by supplying information to employees, energy conservation campaigns are used for stimulation under VJG�Á1((+%'�0Q��Â�ECORCKIP�YKVJ�CYCTF�VQ�DG�RTGUGPVGF�VQ�VJG�YQTMKPI�WPKV�YKVJ�VJG�OQUV�QWVUVCPFKPI�CEJKGXGOGPV�QP�energy conservation as well.

Fluke-Jira and Kanomjean- Kulamart, actor and actress from Channel 8, and artist LuangKai-RSiam received “Phra Kinnaree” award 2015 from the “Assembly of the Radio, Television, and Newspaper Newscasters of Thailand” CU�VJG�TQNG�OQFGN�HQT�IQQF�RGTUQP��IQQF�VJKPMKPI��CPF�KP�good society at the Chulabhorn Research Institute.

Tharmthai,Dome Black Vanilla, and Kratae RSiam CTVKUVU� HTQO�45�� CPF�#MCTCRQP� 6JQPIVCTCFQN�� 4QOMNCQ�#OCTVC[CMWN� ¼� PGYUECUVGTU� HTQO�%JCPPGN� �� TGEGKXGF� the “Filial Piety Persons of the Year” award from the Daily Mirror newspaper at the meeting hall of the “Government Public Relations Department”

Awards received in 2015

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Fluke-Jira and Fang-Thanunthorn actor and actress from television Channel 8 received the “Ambassador of Buddism” award from Department of the Religious Affair in March 2015.

Kratae – Kratie RSiam, Jack Thanapon, Man Maneewan, Ying Titikarn, and View Nuttapon artists from RS received the “Pech Nai Pleang” award in 2015 for the outstanding Thai language users on the occasion of the National Thai Language Day.

ThankYou – Silpchanok, CTVKUV�HTQO�VJG�-COKM\G�ITQWR��CP�CHÌNKCVGF�QH�45�� TGEGKXGF� VJG�Á0CVKQPCN�1WVUVCPFKPI�Children and Youth” award in the category of mainstream media on protection of children and youth from social RTQDNGOU� KP� �� HTQO� VJG� Á1HÌEG� QH� 2TQOQVKQP� CPF�Protection of Child, Youth, the Elderly, and Vulnerable Groups” in the Ministry of Social Development and Human Security on the National Youth Day.

Jack – Jarupong and Hon – Santi, artists from VJG�;'5Î�/WUKE�� CP�CHÌNKCVGF�QH� VJG�45�ITQWR�� TGEGKXGF�the “Compassionate Artist” 2015 award from the “Forum for Artists Promotion on Buddhism of Thailand” as VJG�DGPGÌEKCT[�VQ�$WFFJKUO�

3Internal Control and

Risk Management

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MEDIA REVOLUTIONIST

Annual Report 2015

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Note :��6JG�TGPVCN�CITGGOGPV�OC[�DG�TGPGYGF�CV�GZRKT[��6JG�TGPVCN�CITGGOGPV�TGPGYCN�OC[�PQV�DG�CWVQOCVKECNN[�GPCDNGF�CPF�VJG�TGEQPUKFGTCVKQP�CV�CP[�TGPGYCN�UJCNN�DG�OCFG��6JG�4GNCVGF�2CTV[�6TCPUCEVKQPU�YGTG�CRRTQXGF�CU�RGT�VJG�TGIWNCVKQPU�QH�VJG�%CRKVCN�/CTMGV�5WRGTXKUQT[�$QCTF��CPF�YGTG�FKUENQUGF�CU�RGT�VJG�5VQEM�'ZEJCPIG�QH�6JCKNCPF¿U�CPPQWPEGOGPVU�

MEDIA REVOLUTIONIST

Annual Report 2015

Land Rental

� +P�VJG�ÌPCPEKCN�UVCVGOGPVU�HQT�VJG�[GCT�GPFGF�&GEGODGT��VJG�%QORCP[�CPF�UWDUKFKCTKGU�OCFG�RC[OGPV�QH�NCPF�TGPVCN�VQ�%JGVEJQVKUCM�%QORCP[�.KOKVGF�KP�VJG�COQWPV�QH�$CJV��OKNNKQP�� 6JG�%QORCP[�CPF�UWDUKFKCT[�EQORCP[�TGPVGF�VJG�NCPF�HTQO�VJG�%JGVEJQVKUCM�%QORCP[�.KOKVGF�YJKNG�VJKU�NCPF�JCF�DGGP�UWDNGCUGF�HTQO�/T�-TKGPIMCK�%JGVEJQVKUCM�HQT�WUKPI�CU�GSWKROGPV�UVQTCIG�DWKNFKPI�D[�EJCTIKPI�VJG�NCPF�TGPVCN�CV�VJG�TCVG�QH�$CJV��RGT�USWCTG�YCJ��YJKEJ�YCU�EQPUKFGTGF�TGCUQPCDNG�YJGP�EQORCTGF�VQ�VJG�TGPVCN�QH�PGCTD[�NCPF��6JG�TGPVCN�FGVCKNU�YGTG�CU�HQNNQYU�

Type Renter Rent by Rented spaceRental fee/

month(Baht)

Contract term ( * )Approved by

(**)

.CPF�5QK�.CFRJTCQ��,CVWLCM��$CPIMQM

%JGVEJQVKUCM�%QOOKVGG��%JGVEJQVKUCM�%Q��.VF�


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�5VCT\�6JCKNCPF��%Q��.VF�

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Note :��6JG�TGPVCN�CITGGOGPV�OC[�DG�TGPGYGF�CV�GZRKT[��6JG�TGPVCN�CITGGOGPV�TGPGYCN�OC[�PQV�DG�CWVQOCVKECNN[�GPCDNGF�CPF�VJG�TGEQPUKFGTCVKQP�CV�CP[�TGPGYCN�UJCNN�DG�OCFG��6JKU�CITGGOGPV�YCU�RTQEGGFGF�D[�/CPCIGOGPV�UKPEG�VJG�UK\G�QH�VJG�VTCPUCEVKQP�FKF�PQV�OGGV�VJG�ETKVGTKC�VJCV�TGSWKTGF�VJG�CRRTQXCN�QH�VJG�$QCTF�QH�&KTGEVQTU�CU�RGT�VJG�TGIWNCVKQPU�QH�VJG�%CRKVCN�/CTMGV�5WRGTXKUQT[�$QCTF�

Purchase of Fixed Assets

�0KN�

Guarantee

�0KN�

The Necessity and Rationale of the Related Party Transactions� #NN�TGNCVGF�RCTV[�VTCPUCEVKQPU�CTG�FQPG�WPFGT�VJG�PGEGUUKV[�CPF�TCVKQPCNG�QH�VJG�VTCPUCEVKQPU�VQ�QRVKOK\G�VJG�ÌTO�DGPGÌV��VJG�TGNCVGF�RCTV[�VTCPUCEVKQPU�DGVYGGP�VJG�%QORCP[�CPF�VJG�UWDUKFKCT[�EQORCPKGU�CPF�TGNCVGF�RCTVKGU��VJG�EQTG�VTCPUCEVKQP�QH�YJKEJ�CTG�.CPF�TGPVCN��1HÌEG�TGPVCN�CPF�)WCTCPVGG��YGTG�WPFGT�PQTOCN�EQWTUG�QH�DWUKPGUU��PQ�URGEKCN�EQPFKVKQP�CPF�PQ�VTCPUHGT�QH�KPVGTGUV��2TKEKPI��HGG�TCVG�CPF�QT�KPVGTGUV�TCVG�EQWNF�DG�EQORCTGF�YKVJ�QVJGT�GPVKVKGU¿�VTCPUCEVKQPU�CPF�JCU�DGGP�FKUENQUGF�KP�VJG�PQVGU�VQ�ÌPCPEKCN�UVCVGOGPVU�QH�� 6JG�#WFKV�%QOOKVVGG�JCU�TGXKGYGF�VJG�TGNCVGF�RCTV[�VTCPUCEVKQPU�UWEJ�CU�UCNGU�CPF�RWTEJCUG�QH�IQQFU�QT�CUUGVU��EQR[TKIJV��RTQFWEVKQP�UGTXKEG��QTICPK\KPI�EQPEGTVU�CPF�OCTMGVKPI�CEVKXKVKGU��UCNGU�QH�CFXGTVKUKPI��UGTXKEGU��NQCP�KPVGTGUV��CPF�GVE��FKUENQUGF�KP�VJG�PQVGU�VQ�ÌPCPEKCN�UVCVGOGPVU�QH��CPF�JCU�VJG�HQNNQYKPI�EQOOGPVU�� 6JG�OGPVKQPGF�VTCPUCEVKQPU�QEEWTTGF�WPFGT�PQTOCN�EQWTUG�QH�DWUKPGUU��PGEGUUKV[�CPF�TCVKQPCNG�QH�VJG�EQPPGEVGF�VTCPUCEVKQPU�VQ�QRVKOK\G�VJG�ÌTO�DGPGÌV�

93Measures or Steps of Approval in Related Party Transactions� 6JG�%QORCP[�JCU�UGV�C�RQNKE[�HQT�VJG�CRRTQXCN�QH�TGNCVGF�RCTV[�VTCPUCEVKQPU��6JG�TGNCVGF�RCTV[�VTCPUCEVKQPU�JCU�TQQVGF�KP�PGEGUUKV[��TCVKQPCNG�CPF�QRVKOCN�QH�VJG�ÌTO�DGPGÌV�CPF�EQPFKVKQPU�CTG�KPFKHHGTGPV�VQ�VJG�VTCPUCEVKQP�YKVJ�GZVGTPCN�RCTVKGU��+P�ECUG�QH�VJG�UKIPKÌECPV�TGNCVGF�RCTV[�VTCPUCEVKQPU��EQPFWEVGF�KP�CEEQTFCPEG�YKVJ�VJG�TWNG�IQXGTPKPI�NKUVGF�UGEWTKVKGU��CNN�CRRTQXCN�OWUV�DG�EQPUGPVGF�D[� VJG�#WFKV�%QOOKVVGG�� VJG�$QCTF�QH�&KTGEVQTU�CPF�5JCTGJQNFGTU¿�OGGVKPI�GZENWFKPI�XQVGU�QH�VJG�TGNCVGF�RGTUQPU��0GXGTVJGNGUU��CNN�RTQEGFWTGU�OWUV�DG�KP�NKPG�YKVJ�EQPEGTPGF�TGIWNCVKQPU�QH�VJG�%CRKVCN�/CTMGV�5WRGTXKUQT[�$QCTF�

Policy and Future Potential of Related Party Transactions, including acquisition and disposal of assets

6JG�%QORCP[�UVKNN�OCKPVCKPU� VJG�RQNKE[� HQT� VTCPUCEVKQPU�DGVYGGP� VJG�%QORCP[�CPF� VJG�UWDUKFKCT[�EQORCPKGU�UWEJ�CU�QHÌEG�TGPVCN��NCPF�TGPVCN�CPF�IWCTCPVGG�QH�NQCP�HTQO�DCPM�D[�VJG�%QORCP[�CPF�VJG�%QORCP[¿U�FKTGEVQTU��*QYGXGT�� VJG�%QORCP[�JCU�PQ�RQNKE[�VJCV�OC[�NGCF�VQ�EQPÍKEV�QH�KPVGTGUVU�DGVYGGP�VJG�TGNCVGF�RGTUQPU�UWEJ�CU�NQCP�CPF�IWCTCPVGG�QH�NQCP�GVE��GZEGRV�HQT�VJG�ECUG�VJCV�YKNN�QRVKOK\G�VJG�ÌTO�DGPGÌV��CPF�EQPFKVKQPU�CTG�KPFKHHGTGPV�QT�DGVVGT�VJCP�VJG�VTCPUCEVKQP�YKVJ�GZVGTPCN�RCTVKGU��6JG�%QORCP[�YKNN�GPUWTG�VJCV�CNN�TGNCVGF�RCTV[�VTCPUCEVKQPU�CEEQTFKPI�VQ�EQPEGTPGF�TGIWNCVKQPU�QH� VJG�%CRKVCN�/CTMGV�5WRGTXKUQT[�$QCTF��YKNN�DG�EQPUGPVGF�D[�VJG�$QCTF�QH�&KTGEVQTU�CPF�5JCTGJQNFGTU¿�OGGVKPI�

5Financial Highlight

95Financial Highlight15.1 Statement of Financial Position as at December 31, 2013, 2014 and 2015

Consolidated

31 December 2013(Restated)


31 December 2015

Thousand Baht % Thousand Baht % Thousand Baht %

Assets

Current assets :

%CUJ�CPF�ECUJ�GSWKXCNGPVU ��

5JQTV�VGTO�KPXGUVOGPV

��OQPVJ�ÌZGF�FGRQUKVU ��

6TCFG�CPF�QVJGTU�CEEQWPVU�TGXGKXCDNG�PGV� ��

5JQTV�VGTO�NQCPU�VQ�TGNCVGF�EQORCPKGU�PGV� 100 ��

+PXGPVQTKGU�PGV� ��

8CNWG�CFFGF�VCZ ��

1VJGT�EWTTGPV�CUUGVU�PGV� ��

Total current assets ��

Non-current assets :

+PXGUVOGPVU�KP�CUUQEKCVGF�EQORCP[�PGV� ��

2NCPV�CPF�GSWKROGPV�PGV� ��

&GRQUKV�HQT�EQOOWPKEVKQP�GSWKROGPV ��

.KEGPUG�HQT�QRGTCVKQP�TKIJV�KP�URGEVTWO�QH�FKIKVCN�VGNGXKUKQP�PGV� � � ��

+PVCPIKDNG�CUUGVU�PGV� ��

9KVJJQNFKPI�VCZ�PGV� ��

&GHGTTGF�VCZ�CUUGVU�PGV� ��

1VJGT�PQP�EWTTGPV�CUUGVU�PGV� ��

Total non-current assets ��

Total assets ��

MEDIA REVOLUTIONIST

Annual Report 2015

Consolidated



31 December 2015


Liabilities and shareholders’ equity

Current liabilities :

6TCFG�CPF�QVJGT�CEEQWPVU�RC[CDNG ��

%WTTGPV�RQTVKQP�QH�NKCDKNKV[�WPFGT�H�KPCPEG�NGCUG�CITGGOGPVU�PGV� ��

Current portion of payable for license for QRGTCVKQP�TKIJV�KP�URGEVTWO�QH�FKIKVCN� VGNGXKUKQP�PGV� � � ��

%WTTGPV�RQTVKQP�NQPI�VGTO�NQCP ��

5JQTV�VGTO�NQCPU�HTQO�TGNCVGF�EQORCPKGU ��

2TQXKUKQP�HQT�IQQFU�TGVWTPGF ��

8CNWG�CFFGF�VCZ ��

#EETWGF�KPEQOG�VCZ ��

9KVJJQNFKPI�VCZ�RC[CDNG ��

1VJGT�EWTTGPV�NKCDKNKVKGU � � 139 ��

Total current liabilities ��

Non-current liabilities :

.KCDKNKVKGU�WPFGT�ÌPCPEKCN�NGCUG�CITGGOGPV�PGV� ��

2C[CDNG�HQT�EQUV�QH�NKEGPUG�HQT�QRGTCVKQP�TKIJV�KP�URGEVTWO�QH�FKIKVCN�VGNGXKUKQP�PGV� � � ��

2TQXKUKQP�HQT�QVJGT�NQUUGU ��

'ORNQ[GG�DGPGÌV�QDNKICVKQPU ��

&GHGTTGF�VCZ�NKCDKNKVKGU�PGV� � � ��

1VJGT�PQP�EWTTGPV�NKCDKNKVKGU ��

Total non-current liabilities ��

Total liabilities ��

97

Remarks : (KPCPEKCN�5VCVGOGPV�CU�QH��&GEGODGT��CPF��JCXG�DGGP�CFLWUVGF��KP�TGICTF�VQ�� 4GEQIPKVKQP�QH�FGHGTTGF�KPEQOG�VCZ�QH�VJG�VGORQTCT[�FKUETGRCPE[�KP�GORNQ[GG�DGPGÌV�QDNKICVKQPU��CNNQYCPEG�QH�FQWDVHWN�CEEQWPVU�PQV�

UWG�DWV�OGGV�VJG�ETKVGTKC�QH�YTKVG�QHH�VQ�DCF�FGDV�KP�VCZ�UKFG��CPF�CNNQYCPEG�HQT�QDUQNGVG�KPXGPVQT[�� 5VCVKPI�VJG�XCNWG�QH�VJG�NKEGPUG�HQT�VJG�QRGTCVKQPU�TKIJV�KP�VJG�URGEVTWO�QH�FKIKVCN�VGNGXKUKQP��YJKEJ�CNNQYU�HQT�WUG�QH�VJG�HTGSWGPE[�YCXGU�

CPF�GPICIGOGPV�KP�VJG�VGNGXKUKQP�DWUKPGUU

Consolidated



31 December 2015


Liabilities and shareholders’ equity (Cont’d)

Shareholders’ equity :

5JCTG�ECRKVCN#WVJQTKUGF�UJCTG�ECRKVCN��QTFKPCT[�UJCTGU� of par Baht 1 each �� QTFKPCT[�UJCTGU

of par Baht 1 each �� +UUWGF�CPF�HWNN[�RCKF�WR�UJCTG�ECRKVCN��QTFKPCT[�UJCTGU

of par Baht 1 each �� QTFKPCT[�UJCTGU�

of par Baht 1 each � � �� QTFKPCT[�UJCTGU�

of par Baht 1 each � � � � �� 2TGOKWO�QP�UJCTG�ECRKVCN �� Treasury shares �� #FXCPEG�TGEGKXGF�HQT�UJCTG�ECRKVCN �� &KHHGTGPEG�DGVYGGP�VJG�RWTEJCUG�RTKEG�QH�KPXGUVOGPV�KP�UWDUKFKCTKGU�WPFGT�EQOOQP�EQPVTQN�CPF�VJGKT�PGV�DQQM�XCNWG ��

4GVCKPGF�GCTPKPIU#RRTQRTKCVGF�NGICN�TGUGTXG �� #RRTQRTKCVGF�VTGCUWT[�UJCTG�TGUGTXG �� 7PCRRTQRTKCVGF ��

Total parent’s equity �� 0QP�EQPVTQNNKPI�KPVGTGUVU �� Total shareholders’ equity �� Total liabilities and shareholders’ equity ��

MEDIA REVOLUTIONIST

Annual Report 2015

15.2 Statement of Comprehensive Income For the Year Ended December 31, 2013, 2014 and 2015

Consolidated



31 December 2015


Revenue4GXGPWG�HTQO�OGFKC �� 4GXGPWG�HTQO�OWUKE�FKUVTKDWVKQP �� 4GXGPWG�HTQO�GXGPV�DWUKPGUU �� 4GXGPWG�HTQO�QVJGT�UGTXKEGU �� Total revenue and services income �� %QUV�QH�UCNGU�CPF�UGTXKEGU �� )TQUU�RTQÌV �� 1VJGT�KPEQOG �� 2TQÌV�DGHQTG�GZRGPUGU �� 5GNNKPI�GZRGPUGU �� #FOKPKUVTCVKXG�GZRGPUGU �� 1VJGT�GZRGPUGU �� Total expenses �� 2TQH�KV�DGHQTG�ÌPCPEG�EQUVU�CPF�KPEQOG�VCZ �� (KPCPEG�EQUVU �� 2TQÌV�DGHQTG�KPEQOG�VCZ �� +PEQOG�VCZ�ETGFKV�GZRGPUG� �� 2TQÌV�HQT�VJG�[GCT �� Other comprehensive income

+VGOU�VJCV�YKNN�PQV�DG�TGENCUUKÌGF�VQ�RTQH�KV�QH�loss

�� CEVWCTKCN�ICKP�QP�FGÌPGF�GORNQ[GG�DGPGÌV�RNCP � � ��

�� %JCPIG�KP�FGHGTTGF�VCZ�CUUGV�QP�actuatial�� ICKP�QP�FGÌPGF�GORNQ[GG�DGPGH�KV�

plan � � �� Total comprehensive income for the year ��

99

Remarks : (KPCPEKCN�5VCVGOGPV�CU�QH��&GEGODGT��CPF��JCXG�DGGP�CFLWUVGF��KP�TGICTF�VQ�� 4GEQIPKVKQP�QH�FGHGTTGF�KPEQOG�VCZ�QH�VJG�VGORQTCT[�FKUETGRCPE[�KP�GORNQ[GG�DGPGÌV�QDNKICVKQPU��CNNQYCPEG�QH�FQWDVHWN�CEEQWPVU�PQV�

UWG�DWV�OGGV�VJG�ETKVGTKC�QH�YTKVG�QHH�VQ�DCF�FGDV�KP�VCZ�UKFG��CPF�CNNQYCPEG�HQT�QDUQNGVG�KPXGPVQT[� � �� 5VCVKPI�VJG�XCNWG�QH�VJG�NKEGPUG�HQT�VJG�QRGTCVKQPU�TKIJV�KP�VJG�URGEVTWO�QH�FKIKVCN�VGNGXKUKQP��YJKEJ�CNNQYU�HQT�WUG�QH�VJG�HTGSWGPE[�YCXGU�

CPF�GPICIGOGPV�KP�VJG�VGNGXKUKQP�DWUKPGUU

Consolidated



31 December 2015


2TQÌV�CVVTKDWVCDNG�VQ

'SWKV[�JQNFGTU�QH�VJG�RCTGPV ��

0QP��EQPVTQNNKPI�KPVGTGUVU ��

��

Total comprehensive income attributable to

'SWKV[�JQNFGTU�QH�VJG�RCTGPV ��

0QP��EQPVTQNNKPI�KPVGTGUVU ��

��

'CTPKPIU�RGT�UJCTG�HQT�RTQÌV�CVVTKDWVCDNG�VQ�the equity holders of the parent

$CUKE�GCTPKPIU�RGT�UJCTG�$CJV� � ��

1TFKPCT[�UJCTGU�5JCTGU� ��

Diluted earnings per share for prof it attributable to the equity holders of the parent

&KNWVGF�GCTPKPIU�RGT�UJCTG�$CJV� � ��

9GKIJVGF�CXGTCIG�PWODGT�QH�FKNWVGF�1TFKPCT[�UJCTGU�5JCTGU� ��

MEDIA REVOLUTIONIST

Annual Report 2015

15.3 Statement of Cash Flows For the Year Ended December 31, 2013, 2014 and 2015

Consolidated



31 December 2015


%CUJ�ÍQYU�HTQO�QRGTCVKPI�CEVKXKVKGU2TQÌV�NQUU��DGHQTG�KPEQOG�VCZ ��

Adjustments:

&GRTGEKCVKQP�CPF�COQTVKUCVKQP �� #NNQYCPEG�HQT�FQWDVHWN�CEEQWPVU �� #NNQYCPEG�HQT�FQWDVHWN�KP�TGEQXGTCDNG�QH�YKVJJQNFKPI�VCZ �� #NNQYCPEG�HQT�QDUQNGVG�KPXGPVQTKGU�TGXGTUCN� �� .QUU�HTQO�KPXGPVQTKGU�FGUVTWEVKQP � � � � �� 4GXGTUCN�QH�RTQXKUKQP�HQT�IQQFU�TGVWTPGF �� 4GXGTUCN�QH��CNNQYCPEG�HQT�KORCKTOGPV��KPVCPIKDNG�CUUGVU#NNQYCPEG�HQT�KORCKTOGPV

��

1VJGT�EWTTGPV�CUUGVU�CPF�QVJGT�PQP�EWTTGPV�CUUGVU � � �� #NNQYCPEG�HQT�KORCKTOGPV��KPXGUVOGPV�KP�CP�CUUQEKCVGF�company

110 �� 90 �� 303 ��

4GXGTUCN�RTQXKUKQP�HQT�NQUU�QP�KPXGUVOGPV�KP�UWDUKFKCTKGU �� 4GXGTUCN�QH��RTQXKUKQP�HQT�NKVKICVKQP�ECUG � � �� )CKP��NQUU�QP�FKURQUCN��QH�RTQRGTV[��RKCPV�CPF�GSWKROGPV �� )CKP��NQUU�QP�YTKVG��QHH�RTQRGTV[��RNCPV�CPF�GSWKROGPV � � � � �� 'ORNQ[GG�DGPGÌV�QDNKICVKQPU �� Interest income �� (KPCPEG�EQUVU��KPVGTGUV�GZRGPUG ��

�� Changes in working capital

6TCFG�CPF�QVJGT�CEEQWPVU�TGEGKXCDNG �� +PXGPVQTKGU �� 8CNWG�CFFGF�VCZ �� 1VJGT�EWTTGPV�CUUGVU �� 1VJGT�PQP��EWTTGPV�CUUGVU �� 6TCFG�CPF�QVJGT�CEEQWPVU�RC[CDNG �� 9KVJJQNFKPI�VCZ�RC[CDNG �� 1VJGT�EQWTTGPV�NKCDKNNVKGU �� 139 � �� 1VJGT�PQP��EWTTGPV�NKCDKNNVKGU ��

%CUJ�IGPGTCVGF�HTQO�QRGTCVKPI�CEVKXKVKGU�DGHQTG��KPVGTGUV�KPEQOG�TGEGKXGF��ÌPCPEG�EQUVU�RCKF��CPF�KPEQOG�VCZ�RCKF �� 9KVJJQNFKPI�VCZ�TGHWPFGF �� +PEQOG�VCZ�RCKF �� 0GV�ECUJ�IGPGTCVGF�HTQO�WUGF�KP��QRGTCVKPI�CEVKXKVKGU ��

101Consolidated



31 December 2015


%CUJ�ÍQYU�HTQO�KPXGUVKPI�CEVKXKVKGU+PVGTGUV�KPEQOG�TGEGKXGF �� +PETGCUG�KP�UJQTV�VGTO�NQCPU�VQ�TGNCVGF�EQORCPKGU � � �� 4GEGKRVU�HTQO�UJQTV�VGTO�NQCPU�VQ�TGNCVGF�EQORCPKGU � � �� &GETGCUG�KP�UJQTV�VGTO�NQCPU�VQ�GORNQ[GGU �� 5JQTV�VGTO�KPXGUVOGPV��OQPVJ�H�KZGF�FGRQUKVU �� 2WTEJCUGU�QH�RTQRGTV[��RNCPV�CPF�GSWKROGPV �� 2TQEGGFU�HTQO�FKURQUCNU�QH�RTQRGTV[��RNCPV�CPF�GSWKROGPV �� 2WTEJCUGU�QH�KPVCPIKDNG�CUUGVU �� 2TQEGGFU�HTQO�FKURQUCNU�KPVCPIKDNG�CUUGVU � � � � �� 0GV�ECUJ�TGEGKRVU�RC[OGPVU��HTQO�KPXGUVKPI�CEVKXKVKGU ��

%CUJ�ÍQYU�HTQO�ÌPCPEKPI�CEVKXKVKGU+PVGTGUV�GZRGPUG�RCKF �� 2TQEGGFU�HTQO�UJQTV�VGTO�NQCPU�HTQO�H�KPCPEKCN�KPUVKVWVKQPU �� 2C[OGPVU�QP�UJQTV�VGTO�NQCPU�HTQO�H�KPCPEKCN�KPUVKVWVKQPU �� 2TQEGGFU�HTQO�NQPI�VGTO�NQCPU�HTQO�H�KPCPEKCN�KPUVKVWVKQPU �� 2C[OGPVU�QP�NQPI�VGTO�NQCPU�HTQO�H�KPCPEKCN�KPUVKVWVKQPU �� 2C[OGPVU�QP�NKCDKNKV[�WPFGT�H�KPCPEG�NGCUG�CITGGOGPVU �� #FXCPEG�RC[OGPV�QH�NKEGPUG�HQT�QRGTCVKQP�TKIJV�KP�URGEVTWO�QH�

FKIKVCN�VGNGXKUKQP �� 2TQEGGFU�HTQO�UJQTV�VGTO�NQCPU�HTQO�TGNCVGF�EQORCPKGU �� 2C[OGPVU�QP�UJQTV�VGTO�NQCPU�HTQO�TGNCVGF�EQORCPKGU � � �� &KXKFGPF�RCKF �� &GETGCUG�KP�PQP�EQPVTQNNKPI�KPVGTGUVU�HTQO�FKXKFGPF�RC[OGPV �� &GETGCUG�KP�PQP�EQPVTQNNKPI�KPVGTGUVU�HTQO�FGETGCUG�ECRKVCN � � � � �� 2TQEGGFU�HTQO�KPETGCUG�KP�UJCTG�ECRKVCN �� #FXCPEG�TGEGKRVU�HQT�UJCTG�UWDUETKRVKQP �� 4GEGKRVU�HTQO�TGUCNG�QH�VTGCUWT[�UJCTGU � � � � ��

0GV�ECUJ�RC[OGPVU�HTQO�H�KPCPEKPI�CEVKXKVKGU ��

Net increase (decrease) in cash and cash equivalents �� %CUJ�CPF�ECUJ�GSWKXCNGPVU��QRGPKPI�DCNCPEG �� Cash and cash equivalents, closing balance ��

Non-cash transactions and additional information:

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Annual Report 2015

15.4 Key Financial Ratios

Consolidated

2013(Restated)

2014(Restated)

2015

Liquidity Ratios

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6Management Discussion and

Analysis

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Annual Report 2015

Board of Directors’ Report

To Shareholders,

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MEDIA REVOLUTIONIST

Annual Report 2015

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10716.2 Summary of operating results by business category

16.2.1 Revenue

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MEDIA REVOLUTIONIST

Annual Report 2015

16.2.1.2 Revenue from Music Distribution Business

� 4GXGPWG� HTQO�VJG�/WUKE�&KUVTKDWVKQP�DWUKPGUU�EQPUKUVGF�QH� TGXGPWG� HTQO�RJ[UKECN�UCNGU��FKIKVCN�DWUKPGUU�CPF�EQR[TKIJV�EQNNGEVKQP��6JKU�[GCT��TGXGPWG�HTQO�VJG�/WUKE�&KUVTKDWVKQP�DWUKPGUU�QH��OKNNKQP�DCJV�FGETGCUGF�HTQO�NCUV�[GCT�KP�VJG�COQWPV�QH��OKNNKQP�DCJV��QT��RGTEGPV��6JGTG�YCU�CP�KPETGCUG�KP�TGXGPWG�HTQO�OWUKE�UVTGCOKPI�UGTXKEGU�CPF�;QW6WDG�CFXGTVKUGOGPV�KPEQOG�UJCTKPI��JQYGXGT��KV�YCU�PQV�UWHÌEKGPV�VQ�QHHUGV�VJG�FGETGCUG�KP�TGXGPWG�HTQO�QVJGT�EJCPPGNU� 16.2.1.3 Revenue from Event Business

� 4GXGPWG�HTQO�VJG�GXGPV�DWUKPGUU�EQPUKUVGF�QH�TGXGPWG�HTQO�EQPEGTV�QTICPK\CVKQP�CPF�OCTMGVKPI�CEVKXKVKGU��CTVKUVU¿�OCPCIGOGPV�CPF�EQPVTCEV�RTQFWEVKQPU��6JKU�[GCT��TGXGPWG�HTQO�VJG�GXGPV�DWUKPGUU�COQWPVGF�VQ��OKNNKQP�DCJV��CP�KPETGCUG�QH��OKNNKQP�DCJV� HTQO� NCUV�[GCT��QT��RGTEGPV��6JKU�YCU�FWG� VQ� VJG�CEVKXKVKGU� VJCV�JCXG�DGGP�CTTCPIGF�VJTQWIJQWV�VJKU�[GCT��UWEJ�CEVKXKVKGU�KPENWFGF�Á5CDCKFGG�5WPLQTP�;GCT��Â�Á%JCPPGN��2QD�2WGPÂ��YJKNG�VJG�OCKP�GXGPVU�CTG�UWEJ�CU�Á$GCWV[�0QY��0GZVÂ�Á6TCXGN�CTQWPF�6JCKNCPF��6QWT�CTQWPF�VJG�YQTNFÂ��GVE��/QTGQXGT��VJGTG�YCU�C�NCTIG�UECNG�EQPEGTV�KP�VJG�DGIKPPKPI�QH�VJG�[GCT�ECNNGF��Á&�$�'PEQTG�%QPEGTV��Â�YJKEJ�YCU�C�XGT[�UWEEGUUHWN�GXGPV�QH�� 4GXGPWG�HTQO�QVJGT�UGTXKEGU�ECOG�HTQO�UCNGU�QH�XCTKQWU�RTQFWEVU�VJTQWIJ�VJG�EQORCP[¿U�UCNGU�EJCPPGNU��UWEJ�CU�JGCNVJ�CPF�DGCWV[�RTQFWEVU��VJG�EQNNGEVKQP�QH�UWDUETKRVKQP�HGGU�HQT�'PINKUJ�2TGOKGTG�.GCIWG�HQQVDCNN�OCVEJGU�XKC�VJG�Á5WP�$QZÂ�UGV�VQR�DQZGU�

16.2.2 Cost of Sales and Services

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16.2.3 Selling and Administrative Expenses, Other Expenses and Finance Costs

� 5GNNKPI�CPF�CFOKPKUVTCVKXG�GZRGPUGU�CPF�QVJGT�GZRGPUGU�COQWPVGF�VQ��OKNNKQP�DCJV��CP�KPETGCUG�QH��OKNNKQP�DCJV�HTQO�NCUV�[GCT��QT��RGTEGPV��6JKU�YCU�OCKPN[�FWG�VQ�VJG�KPETGCUG�KP�CFXGTVKUKPI�GZRGPUGU�QH�EQORCP[¿U�RTQFWEVU�CPF�UGTXKEGU��(KPCPEG�EQUVU�YGTG��OKNNKQP�DCJV��CP�KPETGCUG�QH��OKNNKQP�DCJV�HTQO�NCUV�[GCT��QT��RGTEGPV��6JKU�KU�OCKPN[�FWG�VQ�VJG�CNVGTCVKQP�KP�VJG�NKEGPUKPI�XCNWG�QH�VJG�&KIKVCN�68�

Change in accounting policy regarding recording of DTT license fee

� 'CTNKGT�KP��VJG�TWNKPI�QH�VJG�(GFGTCVKQP�QH�#EEQWPVKPI�2TQHGUUKQPU�FKEVCVGU�VJCV�CNN�EQORCPKGU�YJQ�CESWKTG�NQPI�VGTO�NKEGPUG�HTQO�VJG�IQXGTPOGPV��G�I��)�NKEGPUGU�CPF�&KIKVCN�68�NKEGPUGU��CTG�TGSWKTGF�VQ�WUG�VJG�UCOG�CEEQWPVKPI�OGVJQF�KP�TGEQTFKPI�VJG�EQUV�QH�VJG�NKEGPUG�HGGU��6JG�EQORCP[�RTGUGPVGF�FKIKVCN�VGNGXKUKQP�NKEGPUG�CV�EQUV�NGUU�CEEWOWNCVGF�COQTVK\CVKQP�� &WG�VQ�VJG�RC[OGPV�VGTO�QH�FKIKVCN�VGNGXKUKQP�NKEGPUG�KU�DG[QPF�VJG�PQTOCN�ETGFKV�VGTO�QH�0CVKQPCN�$TQCFECUVKPI�CPF�6GNGEQOOWPKECVKQPU�%QOOKUUKQP�06$%��VJG�)TQWR�KU�TGSWKTGF�VQ�EQORCTG�VJG�EQUV�QH�FKIKVCN�VGNGXKUKQP�NKEGPUG�YKVJ�VJG�ECUJ�RTKEG�GSWKXCNGPV�DCUGF�QP�RTGUGPV�XCNWG�QH�KPUVCNNOGPVU�CV�VJG�TGEQIPKVKQP�FCVG�CPF�TGEQIPK\G�VJG�FKHHGTGPEG�DGVYGGP�VJKU�COQWPV�CPF�VJG�VQVCN�RC[OGPVU�CU�ÌPCPEG�EQUVU�QXGT�VJG�RGTKQF�QH�RC[OGPV�VGTO�QH�FKIKVCN�VGNGXKUKQP�NKEGPUG��6JGTGHQTG��VJG�%QORCP[�JCU�TCVKÌGF�VJG�OCVVGT�D[�CRRN[KPI�TGVTQURGEVKXG�CFLWUVOGPV��*GPEG��ÌPCPEKCN�UVCVGOGPVU�QH�VJG�%QORCP[�YKNN�TGEGKXG�UQOG�KORCEV�HTQO�VJGUG�CNVGTCVKQPU�KP��RCTVU�CU�HQNNQYU� 1. Cost of the License:�6JG�%QORCP[�JCU�CWEVKQPGF�VJG�NKEGPUG�CV�VJG�EQUV�QH��OKNNKQP�DCJV�GZENWFKPI�XCV��HQT��[GCTU�FWTCVKQP�WUKPI�VJG�QTKIKPCN�OGVJQF�QH�EQUV�TGEQTFKPI�CV�COQWPV��OKNNKQP�DCJV�RGT�[GCT��YJKNG�VJG�PGY�TGEQTFKPI�OGVJQF�YKNN�TGUWNV�KP�TGFWEKPI�EQUV�VQ��OKNNKQP�DCJV�RGT�[GCT�

109 2. Financial cost:�6JG�CDQXG�CNVGTCVKQP�TGUWNVU�KP�HWVWTG�ÌPCPEG�EJCTIGU�HQT��CV�COQWPV�QH��OKNNKQP�DCJV�� 3. Income Tax: +PEQOG�VCZ�KU�CFLWUVGF�FQYP�D[��OKNNKQP�DCJV�

16.2.4 Gross Profit Margin, Net Profit Margin and Return On Equity (ROE)

b 2013 2014 2015

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16.3 Assets16.3.1 Asset components

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16.3.2 Quality of the assets

16.3.2.1 Trade Accounts Receivable - Others - Net

(Million Baht) 2014 2015

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MEDIA REVOLUTIONIST

Annual Report 2015

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16.4 Liquidity

16.4.1 Cash Flow


%CUJ�ÍQY�HTQO�QRGTCVKPI�CEVKXKVKGU �� %CUJ�ÍQY�HTQO�KPXGUVKPI�CEVKXKVKGU �� %CUJ�ÍQY�HTQO�ÌPCPEKPI�CEVKXKVKGU �� 0GV�KPETGCUG�FGETGCUG��KP�ECUJ�CPF�ECUJ�GSWKXCNGPVU �� %CUJ�CPF�ECUJ�GSWKXCNGPVU�CV�VJG�GPF�QH�VJG�[GCT ��

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MEDIA REVOLUTIONIST

Annual Report 2015

16.4.2 Key Liquidity Ratios

b 2014 2015

%WTTGPV�4CVKQ�VKOG� �� 3WKEM�4CVKQ�VKOG� �� #XGTCIG�FGDV�EQNNGEVKQP�RGTKQF�FC[� �� #XGTCIG�PWODGT�QH�FC[U�UCNGU�FC[� 11 22%TGFKV�RGTKQF�FC[� 19 20%CUJ�E[ENG�FC[� ��

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16.5 Sources of Funds

� .KCDKNKVKGU��5JCTGJQNFGTU¿�'SWKV[�CPF�&GDV�VQ�'SWKV[�4CVKQ


2C[CDNG� HQT�EQUV�QH� NKEGPUG� HQT�QRGTCVKQP� TKIJV� KP�URGEVTWO�QH�FKIKVCN�VGNGXKUKQP�PGV� �� 1VJGT�EWTTGPV�NKCDKNKVKGU �� 1VJGT�PQP�EWTTGPV�NKCDKNKVKGU �� Total liabilities �� 6QVCN�RCTGPV¿U�GSWKV[ �� &GDV�VQ�GSWKV[�TCVKQ�VKOG� ��

#U�QH��&GEGODGT��VJG�%QORCP[�JCF�VQVCN�NKCDKNKVKGU�QH��OKNNKQP�DCJV��YJKEJ�TGÍGEVGF�CP�KPETGCUG�HTQO��QH��OKNNKQP�DCJV�QT��RGTEGPV��6JG�OCKP�TGCUQP�YCU�FWG�VQ�VJG�KPETGCUG�KP�WPGCTPGF�TGXGPWG�HTQO�VJG�GXGPV�DWUKPGUU�FWTKPI�VJG�[GCT��6JGTG�YCU�CNUQ�RC[OGPV�QH��OKNNKQP�DCJV�HQT�VJG�NKEGPUG�HQT�VJG�QRGTCVKQPU�TKIJV�KP�VJG�URGEVTWO�QH�FKIKVCN�VGNGXKUKQP�� #U�QH��&GEGODGT��VJG�%QORCP[�JCF��OKNNKQP�DCJV�KP�UJCTGJQNFGTU¿�GSWKV[�HQT�VJG�RCTGPV�EQORCP[��YJKEJ�TGRTGUGPVGF�CP�KPETGCUG�HTQO�VJG�RTGXKQWU�[GCT�QH��OKNNKQP�DCJV�QT��RGTEGPV��&WTKPI�VJG�[GCT��VJG�%QORCP[�KUUWGF�VTGCUWT[�UJCTGU�KP�VJG�COQWPV�QH��OKNNKQP�DCJV�CPF�RCKF�FKXKFGPFU�VQ�UJCTGJQNFGTU�KP�VJG�COQWPV�QH��OKNNKQP�DCJV�

113� +P��VJG�FGDV�VQ�GSWKV[�TCVKQ�YCU��VKOGU��YJKEJ�KPETGCUGF�UNKIJVN[�HTQO��YJGTG�VJG�TCVKQ�YCU��VKOGU��6JKU�ECP�DG�OCKPN[�CVVTKDWVGF�VQ�VJG�KPETGCUG�KP�WPGCTPGF�TGXGPWG�

16.6 Key Factors and Influence that May Affect the Performance and Financial Position of the Company in the Future� 6JG�OGFKC�DWUKPGUU�KU�VJG�OCKP�KPEQOG�CPF�TGVWTPU�IGPGTCVKPI�DWUKPGUU�QH�VJG�%QORCP[��+P��VJG�%QORCP[�FGTKXGF��RGTEGPV�QH�KVU�KPEQOG�HTQO�VJG�OGFKC�DWUKPGUU��6JG�OCKP�HCEVQT�VJCV�CHHGEVU�VJG�QXGTCNN�ITQYVJ�QH�VJG�OGFKC�KPFWUVT[�KU�VJG�CFXGTVKUKPI�DWFIGVU�UGV�CUKFG�D[�VJG�XCTKQWU�KPFWUVTKGU�CPF�UGEVQTU��YJKEJ�ECP�KPETGCUG�QT�FGETGCUG�FGRGPFKPI�QP�QVJGT�KUUWGU�UWEJ�CU�VJG�GEQPQOKE�CPF�RQNKVKECN�UKVWCVKQP��VJG�EQWPVT[¿U�EQPUWOGT�RWTEJCUKPI�RQYGT��VJG�EQORGVKVKQP�COQPI�QRGTCVQTU�YJQ�GPICIG� KP�CFXGTVKUKPI��CPF�VJG�CFXGTVKUGTU¿�FGEKUKQP� VQ�EJQQUG�COQPI�XCTKQWU�OGFKC�EJCPPGNU�� +P��VJG�QXGTCNN�WUG�QH�DWFIGVU�HQT�CNN�V[RGU�QH�OGFKC�KPETGCUGF��RGTEGPV�HTQO��=FCVC�UQWTEG�HTQO�#)$�0KGNUGP�/GFKC�4GUGCTEJ�6JCKNCPF��.VF�?�� +P�VJG�VGNGXKUKQP�KPFWUVT[��KPEWODGPVU�CTG�HCEGF�YKVJ�GXGP�OQTG�KPVGPUG�EQORGVKVKQP�HTQO�QRGTCVQTU�QH�QVJGT�EJCPPGNU��TGICTFNGUU�QH�YJGVJGT�VJG[�CTG�QTKIKPCN�QRGTCVQTU�CPCNQI�U[UVGO��QT�PGY�QRGTCVQTU��#NN�RNC[GTU�JCXG�VQ�CFLWUV�CPF�CFCRV�VJGKT�EJCPPGN�UVTCVGIKGU�KP�QTFGT�VQ�OCKPVCKP�VJGKT�QNF�XKGYGT�DCUG�CU�YGNN�CU�DQQUV�VJGKT�XKGYGTUJKR�COQPI�PGY�RCTVKGU��YJKEJ�EQWNF�KPENWFG�EQPVKPWQWUN[�EJCPIKPI�VJGKT�EQPVGPV�QT�FGXGNQRKPI�KPVGTGUVKPI�PGY�RTQITCOU��KPENWFKPI�FTCOCU��URQTVU�UJQYU��ICOG�UJQYU��XCTKGV[�UJQYU��QT�GXGP�RWTEJCUKPI�NKEGPUGU�HQT�KPVGTPCVKQPCN�RTQITCOU��6JG�OCKP�IQCN�YQWNF�DG�VQ�WR�VJG�TCVKPIU�CPF�ECRVWTG�OQTG�CFXGTVKUKPI�HWPFU�HQT�QPG¿U�EJCPPGN�KP�C�OCTMGV�YKVJ�C�ÌZGF�COQWPV�QH�CFXGTVKUKPI�DWFIGVU��#V�CP[�TCVG��VJG�%QORCP[�KU�CYCTG�QH�VJG�KORQTVCPEG�QH�RTQRGT�EQUV�CFOKPKUVTCVKQP�CPF�OCPCIGOGPV�VJCV�EQTTGURQPFU�YKVJ�VJG�KPEQOG��OQTG�UQ�VJCP�KPXGUVOGPV�LWUV�HQT�VJG�UCMG�QH�TCVKPIU� +P�CFFKVKQP��NCTIG�UECNG�CPF�QNFGT�QRGTCVQTU�HTQO�VJG�CPCNQI�U[UVGO�JCXG�CP�CFXCPVCIG�QXGT�PGY�RNC[GTU��YJQ�HCEG�VJG�KUUWG�QH�NCEM�QH�RWDNKE�TGNCVKQPU�GHHQTVU�QH�VJG�0CVKQPCN�$TQCFECUVKPI�CPF�6GNGEQOOWPKECVKQP�%QOOKUUKQPU��YJKEJ�JKPFGTU�VJG�ÍQY�QH�KPHQTOCVKQP�CPF�MPQYNGFIG�EQPEGTPKPI�VJG�EJCPIG�VQ�VJG�FKIKVCN�VGNGXKUKQP�U[UVGO��1VJGT�KUUWGU�KPENWFG�RTQDNGOU�YKVJ�WUKPI�EQWRQPU�VQ�TGFGGO�VJG�UCVGNNKVG�UGV�VQR�DQZ��UVCPFCTFU�EQPEGTPKPI�UGTXKEG�CTTCPIGOGPVU�HQT�VGNGXKUKQP�CTTCPIKPI�EJCPPGNU��QH�VJG�0CVKQPCN�$TQCFECUVKPI�CPF�6GNGEQOOWPKECVKQP�%QOOKUUKQPU��YJKEJ�JCU�PQV�DGGP�CDNG�VQ�DG�GPHQTEGF�D[�NCY�VQ�DG�GSWCN�CETQUU�CNN�PCVKQPYKFG�RNCVHQTOU��YKVJ�VJG�GZEGRVKQP�QH�UGTXKEG�RTQXKFGF�VQ�VJG�UWDUETKDGT�DCUGF�VGNGXKUKQP�ECDNG�68��PGVYQTM�VJCV�WUGU�ECDNGU�XKC�VJG�CPCNQI�U[UVGO��#U�UWEJ��UJQWNF�EKVK\GPU�TGEGKXG�UWHÌEKGPV�PGYU�KPHQTOCVKQP�UQ�VJCV�VJG[�UYKVEJ�VQ�YCVEJKPI�FKIKVCN�VGNGXKUKQP��VJG�CTTCPIGOGPV�QH�EJCPPGNU�HQNNQYU�C�PCVKQPYKFG�UVCPFCTF��CPF�DTQCFECUVU�KP�VJG�CPCNQI�U[UVGO�CEEQTFKPI�VQ�VJG�RTGXKQWU�EQPEGUUKQP�EGCUGU��VJG�PGYGT�QRGTCVQTU�YKNN�JCXG�GPJCPEGF�EQORGVKVKXG�ECRCEKV[�

7CONSOLIDATED AND

COMPANY FINANCIAL STATEMENTS

115

AUDITOR’S REPORTTo the Shareholders of RS Public Company Limited

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Management’s Responsibility for the Financial Statements

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MEDIA REVOLUTIONIST

Annual Report 2015

Sudwin Panyawongkhanti%GTVKÌGF�2WDNKE�#EEQWPVCPV�6JCKNCPF��0Q��2TKEGYCVGTJQWUG%QQRGTU�#$#5�.VF��

$CPIMQM��(GDTWCT[��

Opinion

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1VJGT�OCVVGTU

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117

RS Public Company LimitedStatement of Financial Position As at 31 December 2015

Restated Restated Restated31 December 31 December 1 January 31 December 31 December

2015 2014 2014 2015 2014Notes Baht Baht Baht Baht Baht

Assets

Current assets

Cash and cash equivalents 7 757,111,787 381,535,315 572,146,840 518,611,127 152,912,614 Short-term investment

- 12-month fixed deposits 8 4,522,302 4,464,840 4,390,940 - -Trade and others accounts

receivable (net) 9 875,711,663 1,100,765,448 1,068,332,496 1,023,419,799 797,712,877 Short-term loans to related

companies (net) 33 d) - - - 494,274,774 329,700,000 Short-term loans to employees - - 100,071 - - Inventories (net) 10 163,095,437 106,766,620 38,910,751 54,667,935 5,583,728 Value added tax 22 40,928,458 25,693,651 4,559,425 - - Other current assets (net) 11 97,984,687 6,600,575 14,831,194 96,728,841 2,549,455

Total current assets 1,939,354,334 1,625,826,449 1,703,271,717 2,187,702,476 1,288,458,674

Non-current assets

Investments in subsidiaries (net) 12 - - - 481,732,849 624,853,390 Investments in associated

company (net) 13 5,102,753 5,406,090 5,495,813 - - Plant and equipment (net) 14 384,016,267 388,230,557 310,016,492 358,736,941 370,172,650 Deposit for communiction equipment - - 38,000,000 - - License for operation right in spectrum

of digital television (net) 15 1,802,058,253 1,937,314,527 - - - Intangible assets (net) 16 323,571,197 372,632,875 745,172,194 109,666,456 128,038,699 Withholding tax (net) 17 130,537,536 92,453,881 42,583,803 69,548,760 49,902,284 Deferred tax assets (net) 18 228,020,379 122,551,702 57,334,341 108,772,378 88,366,146 Other non-current assets (net) 19 31,265,889 37,358,769 47,936,238 28,119,889 32,436,857

Total non-current assets 2,904,572,274 2,955,948,401 1,246,538,881 1,156,577,273 1,293,770,026

Total assets 4,843,926,608 4,581,774,850 2,949,810,598 3,344,279,749 2,582,228,700

Director _________________________________________ Director ____________________________________

CompanyConsolidated

3

Restated1 January

2014Baht

405,983,565

-

745,037,502

165,988,659 77,364

11,499,823 -

5,789,964

1,334,376,877

371,392,179

- 293,784,657

-

- 173,904,491 12,907,566 45,475,761 40,713,910

938,178,564

2,272,555,441

Director _________________________________________ Director ____________________________________

Company

7

6JG�CEEQORCP[KPI�PQVGU�CTG�CP�KPVGITCN�RCTV�QH�VJGUG�KPVGTKO�ÌPCPEKCN�KPHQTOCVKQP�


Statement of Financial Position As at 31 December 2015

MEDIA REVOLUTIONIST

Annual Report 2015


Restated Restated Restated31 December 31 December 1 January 31 December 31 December

2015 2014 2014 2015 2014

Notes Baht Baht Baht Baht Baht

Liabilities and shareholders’ equity

Current liabilities

Trade and other accounts payable 20 1,419,187,133 840,787,463 828,133,450 1,121,993,242 484,890,524

Current portion of liability under

finance lease agreements (net) 21 5,865,272 7,655,315 5,139,978 5,865,272 7,655,315

Current portion of payable for license

for operation right in spectrum

of digital television (net) 15 361,674,762 235,348,883 - - -

Current portion long-term loan - - 286,915,000 - -

Short-term loans from

related companies 33 e) - - 8,000,000 48,000,000 246,045,000

Provision for goods returned 14,365,874 36,734,933 74,467,449 14,365,874 36,734,933

Value added tax 22 48,410,441 57,379,026 53,574,450 26,430,661 27,071,760

Accrued income tax 37,642,175 84,101,631 18,797,000 - -

Withholding tax payable 11,949,157 23,338,086 15,488,599 6,762,080 5,680,585

Other current liabilities 186,693 139,136 - - -

Total current liabilities 1,899,281,507 1,285,484,473 1,290,515,926 1,223,417,129 808,078,117

Non-current liabilities

Liabilities under financial lease

agreements (net) 21 7,206,218 5,103,489 12,758,805 7,206,218 5,103,489

Payable for cost of license for

operation right in spectrum

of digital television (net) 15 1,105,918,838 1,467,593,599 - - -

Provision for loss on investment

in subsidiaries 12 - - - - 2,949,109

Provision for other losses 1,659,333 3,704,832 1,948,971 - -

Employee benefit obligations 23 85,545,748 65,351,484 49,767,218 74,813,289 56,707,234

Deferred tax liabilities (net) 18 - 5,191,022 - - -

Other non-current liabilities 24 17,156,186 6,017,390 9,473,070 11,007,788 916,094

Total non-current liabilities 1,217,486,323 1,552,961,816 73,948,064 93,027,295 65,675,926

Total liabilities 3,116,767,830 2,838,446,289 1,364,463,990 1,316,444,424 873,754,043

The accompanying notes on pages 14 to 70 are an integral part of these interim financial information.

CompanyConsolidated

4

Restated1 January

2014

Baht

462,372,698

5,139,978

-

-

45,045,000

74,294,222

33,268,413

-

7,840,857

-

627,961,168

12,758,805

-

1,421,989

-

43,509,995

-

9,330,773

67,021,562

694,982,730


Company

8



Statement of Financial Position (Cont’d)As at 31 December 2015

119

Restated1 January

2014

Baht

462,372,698

5,139,978

-

-

45,045,000

74,294,222

33,268,413

-

7,840,857

-

627,961,168

12,758,805

-

1,421,989

-

43,509,995

-

9,330,773

67,021,562

694,982,730


Company

8


Restated Restated Restated

31 December 31 December 1 January 31 December 31 December

2015 2014 2014 2015 2014

Notes Baht Baht Baht Baht Baht

Liabilities and shareholders’ equity (Cont’d)

Shareholders’ equity

Share capital 25.1

Authorised share capital

1,026,000,280 ordinary shares

of par Baht 1 each 1,026,000,280 1,026,000,280 1,026,000,280


of par Baht 1 each 1,013,591,880 1,013,591,880

Issued and fully paid-up share capital

953,866,816 ordinary shares

of per Baht 1 each - - 953,866,816 - -


of par Baht 1 each - 1,022,346,046 - - 1,022,346,046


of par Baht 1 each 1,009,937,646 - - 1,009,937,646 -

Premium on share capital 25.1 255,824,816 255,224,632 193,593,325 255,824,816 255,224,632

Treasury shares 25.2 - (74,671,816) (74,671,816) - (74,671,816)

Advance received for share capital - - 30,061,063 - -

Difference between the purchase price

of investment in subsidiaries

under common control and their

net book value (16,593,840) (16,593,840) (16,593,840) - -

Retained earnings

Appropriated legal reserve 91,780,991 69,910,358 52,994,862 91,780,991 69,910,358

Appropriated treasury share reserve - 74,671,816 74,671,816 - 74,671,816

Unappropriated 375,900,765 382,380,696 368,431,859 670,291,872 360,993,621

Total parent’s equity 1,716,850,378 1,713,267,892 1,582,354,085 2,027,835,325 1,708,474,657

Non-controlling interests 10,308,400 30,060,669 2,992,523 - -

Total shareholders’ equity 1,727,158,778 1,743,328,561 1,585,346,608 2,027,835,325 1,708,474,657

Total liabilities and shareholders’ equity 4,843,926,608 4,581,774,850 2,949,810,598 3,344,279,749 2,582,228,700


CompanyConsolidated

5



Statement of Financial Position (Cont’d) As at 31 December 2015

Restated

1 January

2014

Baht

1,026,000,280

953,866,816

-

-

193,593,325

(74,671,816)

30,061,063

-

52,994,862

74,671,816

347,056,645

1,577,572,711

-

1,577,572,711

2,272,555,441


Company

9

MEDIA REVOLUTIONIST

Annual Report 2015

RS Public Company LimitedStatement of Comprehensive IncomeFor the year ended 31 December 2015

Restated Restated2015 2014 2015 2014

Notes Baht Baht Baht Baht

Revenue

Revenue from media 2,246,138,300 3,356,834,829 882,103,508 883,264,569 Revenue from music distribution 374,962,586 457,816,856 323,351,395 405,395,848 Revenue from event business 796,019,155 458,514,472 750,123,332 321,838,996 Revenue from other services 311,586,345 33,285,277 53,262,037 105,535,215

Total revenue and services income 3,728,706,386 4,306,451,434 2,008,840,272 1,716,034,628

Cost of sales and services (2,706,851,881) (2,941,074,003) (1,468,576,478) (1,449,738,041)

Gross profit 1,021,854,505 1,365,377,431 540,263,794 266,296,587

Other income 27 50,803,881 26,925,280 539,148,230 535,271,473

Profit before expenses 1,072,658,386 1,392,302,711 1,079,412,024 801,568,060

Selling expenses (207,026,213) (207,553,838) (70,550,083) (69,752,854) Administrative expenses (665,431,005) (627,868,692) (549,996,616) (482,599,422) Allowance for impairment on investment

in subsidiaries - - (35,076,889) 55,858,982 Other expenses 28 664,290 (3,983,057) (1,052,334) (914,882) Finance costs 30 (81,084,844) (77,801,756) (4,751,313) (7,175,312)

Profit (loss) before income tax 119,780,614 475,095,368 417,984,789 296,984,572

Income tax credit (expense) 31 12,329,876 (107,451,734) 19,427,875 43,186,869

Profit (loss) for the year 132,110,490 367,643,634 437,412,664 340,171,441

Other comprehensive incomeItems that will not be reclassified to profit of loss

- actuarial gain on defined employee benefit plan - 1,567,124 - 2,044,733

- Change in deferred tax asset on actuatial gain on defined employee benefit plan - (313,424) - (408,947)

Total comprehensive income (loss) for the year 132,110,490 368,897,334 437,412,664 341,807,227

Consolidated Company

6


Statement of Comprehensive Income As at 31 December 2015


121The accompanying notes on pages 14 to 70 are an integral part of these interim financial information.

RS Public Company LimitedStatement of Comprehensive IncomeFor the year ended 31 December 2015


Notes Baht Baht Baht Baht

Profit (loss) attributable toEquity holders of the parent 121,634,482 340,975,070 437,412,664 340,171,441 Non - controlling interests 10,476,008 26,668,564 - -

132,110,490 367,643,634 437,412,664 340,171,441

Total comprehensive income (loss) attributable to

Equity holders of the parent 121,634,482 341,819,088 437,412,664 341,807,227 Non - controlling interests 10,476,008 27,078,246 - -

132,110,490 368,897,334 437,412,664 341,807,227

Earnings per share for profit attributable to the equity holders of the parent

Basic earnings per share (Baht) 32.1 0.1208 0.3465 0.4345 0.3453

Diluted earnings per share for profit attributable to the equity holders of the parent

Diluted earnings per share (Baht) 32.2 - 0.3465 - 0.3453


7


Statement of Comprehensive Income (Cont’d) As at 31 December 2015


MEDIA REVOLUTIONIST

Annual Report 2015

RS

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11

MEDIA REVOLUTIONIST

Annual Report 2015

RS Public Company LimitedStatement of Cash FlowsFor the year ended 31 December 2015


Notes Baht Baht Baht BahtCash flows from operating activitiesProfit (loss) before income tax 119,780,614 475,095,368 417,984,789 296,984,572 Adjustments:

Depreciation and amortisation 14, 15,16, 29 546,666,741 1,078,491,128 88,988,709 356,050,541 Allowance for doubtful accounts 8 19,175,827 4,294,404 2,661,161 1,916,284 Allowance for doubtful in recoverable of withholding tax (3,114,451) 2,635,164 - - Allowance for doubtful accounts for short-term loans

to related companies (reversal) 33 d) - - (10,574,774) (591,341) Allowance for obsolete inventories (reversal) 9 29,915,367 (7,490,556) (3,630,215) (6,061,236) Loss from inventories destruction 3,888,845 - 3,888,845 - Reversal of provision for goods returned (22,369,059) (37,732,516) (22,369,059) (37,559,289) (Reversal of) allowance for impairment - intangible assets 16 (4,490,167) 19,719,003 15,802,735 15,647,439 Allowance for impairment

- other current assets and other non-current assets 11, 19 672,755 (302,179) (138,802) 76,969 Allowance for impairment - investment in

an associated company 13 303,337 89,723 - - (Reversal of) allowance for impairments

- investments in subsidiaries 12 - - 49,370,541 (58,661,111) Reversal of provision for loss on investment in subsidiaries 12 - - (2,949,109) 1,527,120 Loss from write-off investment in subsidiaries - - - 1,199,900 (Reversal of) provision for litigation case 28 (2,045,499) 1,755,861 - - (Gain) loss on disposal of property, plant and equipment 28 (744,323) 305,673 509,063 - (Gain) loss on write-off property, plant and equipment 28 807,675 - (27,945) 412,045 Employee benefit obligations 23 20,194,264 17,151,390 18,106,055 15,521,825 Dividend income 27 - - (369,578,855) (407,907,925) Interest income 27 (2,454,665) (2,957,028) (19,099,399) (16,324,064) Finance costs - interest expense 30 81,084,844 77,801,756 4,751,313 7,175,312

787,272,105 1,628,857,191 173,695,053 169,407,041 Changes in working capital

Trade and other accounts receivable 205,862,089 (36,909,643) (228,559,402) (10,436,980) Inventories (90,133,029) (60,365,313) (49,342,837) 11,977,331 Value added tax (24,203,392) (17,329,650) (641,099) (6,196,653) Other current assets (91,212,310) 8,311,899 (94,040,584) 3,163,540 Other non-current assets 5,189,222 10,857,469 4,316,968 8,277,053 Trade and other accounts payable 588,819,879 (6,302,983) 646,929,951 3,805,373 Withholding tax payable (11,388,929) 7,849,487 1,081,495 (2,160,272) Other courrent liabilities 47,557 139,136 - - Other non-current liabilities 11,138,796 (3,455,680) 10,091,694 (8,414,679)

Cash generated from operating activities before interest income received, finance costs paidand income tax paid 1,381,391,988 1,531,651,913 463,531,239 169,421,754

Withholding tax refunded 12,297,788 882,946 12,297,788 - Income tax paid (192,056,271) (155,875,054) (32,922,621) (37,107,181)

Net cash generated from (used in) operating activities 1,201,633,505 1,376,659,805 442,906,406 132,314,573


12


Statement of Cash FlowsAs at 31 December 2015


127The accompanying notes on pages 14 to 70 are an integral part of these interim financial information.

RS Public Company LimitedStatement of Cash Flows (Cont'd)For the year ended 31 December 2015


Notes Baht Baht Baht BahtCash flows from investing activitiesInterest income received 2,470,534 3,139,315 16,236,570 14,668,195 Increase in short-term loans to related companies 33 d) (68,500,000) (91,000,000) (338,500,000) (833,120,000) Receipts from short-term loans to related companies 33 d) 68,500,000 91,000,000 184,500,000 670,000,000 Decrease in short-term loans to employees 59,101 40,970 - 77,364 Payments on investments in subsidiaries - - - (196,000,000) Short-term investment-12-month fixed deposits (57,462) (73,900) - - Receipts from decrease in share capital of subsidiaries - - 93,750,000 - Receipts from dividend income - - 379,079,203 365,409,115 Purchases of property, plant and equipment (88,983,784) (141,258,097) (70,385,388) (131,516,931) Proceeds from disposals of property, plant and equipment 8,693,737 472,516 248,598 112,131 Purchases of intangible assets (274,408,741) (550,934,305) (10,884,255) (253,340,067) Proceeds from disposals intangible assets 530,895 - - -

Net cash receipts (payments) from investing activities (351,695,720) (688,613,501) 254,044,728 (363,710,193)

Cash flows from financing activitiesInterest expense paid (13,364,724) (26,194,544) (4,939,309) (5,637,146) Proceeds from short-term loans from financial institutions 470,000,000 755,000,000 370,000,000 755,000,000 Payments on short-term loans from financial institutions (470,000,000) (755,000,000) (370,000,000) (755,000,000) Proceeds from long-term loans from financial institutions - 65,000,000 - - Payments on long-term loans from financial institutions - (351,915,000) - - Payments on liability under finance lease agreements (10,216,316) (6,132,904) (10,216,316) (6,132,904) Advance payment of license for operation right

in spectrum of digital television (302,500,000) (340,500,000) - - Proceeds from short-term loans from related companies 33 e) - - 127,500,000 719,000,000 Payments on short-term loans from related companies 33 e) - (8,000,000) (325,545,000) (518,000,000) Dividend paid 26 (180,915,596) (310,954,755) (180,915,596) (310,954,755) Decrease in non-controlling interests from dividend payment (11,478,277) (10,100) - - Decrease in non-controlling interests from decrease capital 25.3 (18,750,000) - - - Proceeds from increase in share capital - 100,049,474 - 100,049,474 Receipts from resale of treasury shares 25.2 62,863,600 - 62,863,600 -

Net cash payments from financing activities (474,361,313) (878,657,829) (331,252,621) (21,675,331)

Net increase (decrease) in cash and cash equivalents 375,576,472 (190,611,525) 365,698,513 (253,070,951) Cash and cash equivalents, opening balance 381,535,315 572,146,840 152,912,614 405,983,565

Cash and cash equivalents, closing balance 757,111,787 381,535,315 518,611,127 152,912,614

Non-cash transactions and additional information:Outstanding payables arising from purchases

of property, plant and equipment as at 31 December 9,038,606 19,458,815 8,817,124 17,887,359 Outstanding payable arising from purchase of

property, plant and equipment under finance leaseagreement as at 31 December 9,960,000 - 9,960,000 -

Payable for cost of license for oparation right in spectrum of digital television as at 31 December - 1,702,942,482 - -

Outstanding payable arising from staff transferredas at 31 December - - - 279,853

Outstanding receivables arising from disposals ofproperty, plant and equipment as at 31 December - - 5,945,521 -

Outstanding receivables arising from disposals of intangible assets as at 31 December - - 500,679 -

Decrease in treasury shares 25.2 (52,347,317) - (52,347,317) - Decrease in premium on share capital from

decreasing in treasury shares 25.2 39,938,917 - 39,938,917 -


13


Statement of Cash Flows (Cont’d)As at 31 December 2015


MEDIA REVOLUTIONIST

Annual Report 2015

RS Public Company Limited Notes to the Consolidated and Company Financial Statements For the year ended 31 December 2015

14

1 General information

RS Public Company Limited (the “Company”) is incorporated as a limited company registered in Thailand on 17 April 1992

and on 15 January 2003, the Company converted to be a public company limited and listed on the Stock Exchange of Thailand on 22 May 2003. The address of the Company’s registered office is as follows: 419/1 Soi Ladphao 15, Ladphao Road, Jompon, Jatujak, Bangkok, Thailand. For reporting purposes, the Company and its subsidiaries are referred to as ‘the Group’. The principal business operations of the Group are entertainment business including media, music distribution, showbiz and other business supporting the Group’s core business. These consolidated and company financial statements has been approved by the Board of Directors on 24 February 2016.

2 Accounting policies

The principal accounting policies applied in the preparation of these consolidated and company financial statements are set out below: 2.1 Basis of preparation

The consolidated and company financial statements have been prepared in accordance with Thai generally accepted accounting principles under the Accounting Act B.E. 2543, being those Thai Financial Reporting Standards issued under the Accounting Profession Act B.E.2547, and the financial reporting requirements of the Securities and Exchange Commission under Securities and Exchange Act. Where necessary, the comparative figures have been adjusted and reclassified to conform with changes in the presentation in the current period as presented in Note 6. The consolidated and company financial statements have been prepared under the historical cost convention except otherwise disclosed in the accounting policies below. The preparation of financial statements in conformity with Thai generally accepted accounting principles requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated and company financial statements are disclosed in Note 4. An English version of the consolidated and company financial statements have been prepared from the statutory financial statements that are in the Thai language. In the event of a conflict or a difference in interpretation between the two languages, the Thai language statutory financial statements shall prevail.


Notes to the Consolidated and Company Financial StatementsFor the year ended 31 December 2015


15

2 Accounting policies (Cont’d)

2.2 New financial reporting standards, accounting standards and amendments to financial reporting

standards and related interpretations

2.2.1 New financial reporting standards, accounting standards and amendments to financial reporting standards and related interpretations which are effective for the periods beginning on or after 1 January 2015 a) Amendments to accounting standard, financial reporting standards and related interpretations

with a significant changes are as follows:

TAS 1 (revised 2014) Presentation of financial statements TAS 16 (revised 2014) Property, plant and equipment TAS 19 (revised 2014) Employee benefits TAS 27 (revised 2014) Separate financial statements TAS 28 (revised 2014) Investments in associates and joint ventures TAS 34 (revised 2014) Interim financial reporting TFRS 10 Consolidated financial statements TFRS 11 Joint arrangements TFRS 12 Disclosure of interests in other entities TFRS 13 Fair value measurement TFRIC 14 TAS 19 - The limit on a defined benefit asset, minimum

funding requirements and their interaction TFRIC 20 Stripping costs in the production phase of a surface mine TAS 1 (revised 2014), the main change is that a requirement for entities to group items presented in ‘other comprehensive income’ (OCI) on the basis of whether they are potentially reclassifiable to profit or loss subsequently (reclassification adjustments). The amendments do not address which items are presented in OCI. This standard has no impact to the Group’s financial statements. TAS 16 (revised 2014) indicates that spare part, stand-by equipment and servicing equipment are recognised as PPE when they meet the definition of PPE. Otherwise, such items are classified as inventory. This standard has no impact to the Group’s financial statements. TAS 19 (revised 2014), the key changes are (a) actuarial gains and losses are renamed ‘remeasurements’ and will be recognised immediately in ‘other comprehensive income’ (OCI). Actuarial gains and losses will no longer be deferred using the corridor approach or recognised in profit or loss; and (b) past-service costs will be recognised in the period of a plan amendment; unvested benefits will no longer be spread over a future-service period. This standard has no impact to the Group’s financial statements. TAS 27 (revised 2014)�provide the requirements relating to�separate financial statements. This standard has no impact to the Group’s financial statements. TAS 28 (revised 2014)� provide the requirements for investment in� associates and joint ventures accounted by equity method. This standard has no impact to the Group’s financial statements. TAS 34 (revised 2014), the key change is the disclosure requirements for operating segment. An entity shall disclose information of a measure of total assets and liabilities for a particular reportable segment if such amounts are regularly provided to the chief operating decision maker and if there has been a material change from the amount disclosed in the last annual financial statements for that reportable segment. This standard has no impact to the Group’s financial statements.

129RS Public Company Limited Notes to the Consolidated and Company Financial Statements For the year ended 31 December 2015

15




2.2.1 New financial reporting standards, accounting standards and amendments to financial reporting standards and related interpretations which are effective for the periods beginning on or after 1 January 2015 a) Amendments to accounting standard, financial reporting standards and related interpretations

with a significant changes are as follows:

TAS 1 (revised 2014) Presentation of financial statements TAS 16 (revised 2014) Property, plant and equipment TAS 19 (revised 2014) Employee benefits TAS 27 (revised 2014) Separate financial statements TAS 28 (revised 2014) Investments in associates and joint ventures TAS 34 (revised 2014) Interim financial reporting TFRS 10 Consolidated financial statements TFRS 11 Joint arrangements TFRS 12 Disclosure of interests in other entities TFRS 13 Fair value measurement TFRIC 14 TAS 19 - The limit on a defined benefit asset, minimum

funding requirements and their interaction TFRIC 20 Stripping costs in the production phase of a surface mine TAS 1 (revised 2014), the main change is that a requirement for entities to group items presented in ‘other comprehensive income’ (OCI) on the basis of whether they are potentially reclassifiable to profit or loss subsequently (reclassification adjustments). The amendments do not address which items are presented in OCI. This standard has no impact to the Group’s financial statements. TAS 16 (revised 2014) indicates that spare part, stand-by equipment and servicing equipment are recognised as PPE when they meet the definition of PPE. Otherwise, such items are classified as inventory. This standard has no impact to the Group’s financial statements. TAS 19 (revised 2014), the key changes are (a) actuarial gains and losses are renamed ‘remeasurements’ and will be recognised immediately in ‘other comprehensive income’ (OCI). Actuarial gains and losses will no longer be deferred using the corridor approach or recognised in profit or loss; and (b) past-service costs will be recognised in the period of a plan amendment; unvested benefits will no longer be spread over a future-service period. This standard has no impact to the Group’s financial statements. TAS 27 (revised 2014)�provide the requirements relating to�separate financial statements. This standard has no impact to the Group’s financial statements. TAS 28 (revised 2014)� provide the requirements for investment in� associates and joint ventures accounted by equity method. This standard has no impact to the Group’s financial statements. TAS 34 (revised 2014), the key change is the disclosure requirements for operating segment. An entity shall disclose information of a measure of total assets and liabilities for a particular reportable segment if such amounts are regularly provided to the chief operating decision maker and if there has been a material change from the amount disclosed in the last annual financial statements for that reportable segment. This standard has no impact to the Group’s financial statements.

MEDIA REVOLUTIONIST

Annual Report 2015


16




2.2.1 New financial reporting standards, accounting standards and amendments to financial reporting standards and related interpretations which are effective for the periods beginning on or after 1 January 2015 (Cont’d) a) Amendments to accounting standard, financial reporting standards and related interpretations

with a significant changes are as follows: (Cont’d) TFRS 10 has a single definition of control and supersedes the principles of control and consolidation included within the original TAS 27, ‘Consolidated and separate financial statements’. The standard sets out the requirements for when an entity should prepare consolidated financial statements, defines the principles of control, explains how to apply the principles of control and explains the accounting requirements for preparing consolidated financial statements. The key principle in the new standard is that control exists, and consolidation is required, only if the investor possesses power over the investee, has exposure to variable returns from its involvement with the investee and has the ability to use its power over the investee to affect its returns. This standard has no impact to the Group’s financial statements. TFRS 11�defined that a joint arrangement is a contractual arrangement where at least two parties agree to share control over the activities of the arrangement. Unanimous consent toward decisions about relevant activities between the parties sharing control is a requirement in order to meet the definition of joint control. Joint arrangements can be joint operations or joint ventures. The classification is principle based and depends on the parties’ exposure in relation to the arrangement. When the parties’ exposure to the arrangement only extends to the net assets of the arrangement, the arrangement is a joint venture. Joint operations have rights to assets and obligations for liabilities. Joint operations account for their rights to assets and obligations for liabilities. Joint ventures account for their interest by using the equity method of accounting. This standard has no impact to the Group’s financial statements. TFRS 12�require entities to disclose information that helps readers of financial statements to evaluate the nature of risks and financial effects associated with the entity’s interests in subsidiaries, associates, joint arrangements and unconsolidated structured entities. This standard has no impact to the Group’s financial statements. TFRS 13 aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across TFRSs. This standard has no impact to the Group’s financial statements, except for disclosures. TFRIC 14 this interpretation applies to all post-employment defined benefits and other long-term employee benefits. For the purpose of this interpretation, minimum funding requirements are any requirements to fund a post-employment or other long-term benefit plan. This interpretation explains how the pension asset or liability may be affected by a statutory or contractual minimum funding requirement. This standard has no impact to the Group’s financial statements. TFRIC 20 this interpretation sets out the accounting for overburden waste removal (stripping) costs in the production phase of a surface mine. This standard has not relevant to the Group.


17




2.2.1 New financial reporting standards accounting standards and amendments to financial reporting standards and related interpretations which are effective for the periods beginning on or after 1 January 2015 (Cont’d) b) Amendments accounting standards and financial reporting standards and related interpretation

with minor changes and do not have impact to the Group are as follows:

TAS 2 (revised 2014) Inventories TAS 7 (revised 2014) Statement of cash flows TAS 8 (revised 2014) Accounting policies, changes in accounting estimates and errors TAS 10 (revised 2014) Events after the reporting period TAS 11 (revised 2014) Construction contracts TAS 12 (revised 2014) Income taxes TAS 17 (revised 2014) Leases TAS 18 (revised 2014) Revenue TAS 20 (revised 2014) Accounting for government grants and disclosure of government

assistance TAS 21 (revised 2014) The effects of changes in foreign exchange rates TAS 23 (revised 2014) Borrowing costs TAS 24 (revised 2014) Related party disclosures TAS 26 (revised 2014) Accounting and reporting by retirement benefit plans TAS 29 (revised 2014) Financial reporting in hyperinflationary economies TAS 33 (revised 2014) Earnings per share TAS 36 (revised 2014) Impairment of assets TAS 37 (revised 2014) Provisions, contingent liabilities and contingent assets TAS 38 (revised 2014) Intangible assets TAS 40 (revised 2014) Investment property TFRS 2 (revised 2014) Share-based payment TFRS 3 (revised 2014) Business combinations TFRS 5 (revised 2014) Non-current assets held for sale and discontinued operations TFRS 6 (revised 2014) Exploration for and evaluation of mineral resources TFRS 8 (revised 2014) Operating segments TSIC 10 (revised 2014) Government assistance - No specific relation to operating

activities TSIC 15 (revised 2014) Operating leases - Incentives TSIC 25 (revised 2014) Income taxes - changes in the tax status of an entity or its

shareholders TSIC 27 (revised 2014) Evaluating the substance of transactions involving the legal

form of a lease TSIC 29 (revised 2014) Service concession arrangements: Disclosures TSIC 31 (revised 2014) Revenue - barter transactions involving advertising services TSIC 32 (revised 2014) Intangible assets - Web site costs TFRIC 1 (revised 2014) Changes in existing decommissioning, restoration and similar

liabilities TFRIC 4 (revised 2014) Determining whether an arrangement contains a lease TFRIC 5 (revised 2014) Rights to interests arising from decommissioning, restoration

and environmental rehabilitation funds TFRIC 7 (revised 2014) Applying the restatement approach under TAS29 Financial

reporting in hyperinflationary economies TFRIC 10 (revised 2014) Interim financial reporting and impairment TFRIC 12 (revised 2014) Service concession arrangements TFRIC 13 (revised 2014) Customer loyalty programmes TFRIC 15 (revised 2014) Agreements for the construction of real estate TFRIC 17 (revised 2014) Distributions of non-cash assets to owners TFRIC 18 (revised 2014) Transfers of assets from customers


17




2.2.1 New financial reporting standards accounting standards and amendments to financial reporting standards and related interpretations which are effective for the periods beginning on or after 1 January 2015 (Cont’d) b) Amendments accounting standards and financial reporting standards and related interpretation


TAS 2 (revised 2014) Inventories TAS 7 (revised 2014) Statement of cash flows TAS 8 (revised 2014) Accounting policies, changes in accounting estimates and errors TAS 10 (revised 2014) Events after the reporting period TAS 11 (revised 2014) Construction contracts TAS 12 (revised 2014) Income taxes TAS 17 (revised 2014) Leases TAS 18 (revised 2014) Revenue TAS 20 (revised 2014) Accounting for government grants and disclosure of government

assistance TAS 21 (revised 2014) The effects of changes in foreign exchange rates TAS 23 (revised 2014) Borrowing costs TAS 24 (revised 2014) Related party disclosures TAS 26 (revised 2014) Accounting and reporting by retirement benefit plans TAS 29 (revised 2014) Financial reporting in hyperinflationary economies TAS 33 (revised 2014) Earnings per share TAS 36 (revised 2014) Impairment of assets TAS 37 (revised 2014) Provisions, contingent liabilities and contingent assets TAS 38 (revised 2014) Intangible assets TAS 40 (revised 2014) Investment property TFRS 2 (revised 2014) Share-based payment TFRS 3 (revised 2014) Business combinations TFRS 5 (revised 2014) Non-current assets held for sale and discontinued operations TFRS 6 (revised 2014) Exploration for and evaluation of mineral resources TFRS 8 (revised 2014) Operating segments TSIC 10 (revised 2014) Government assistance - No specific relation to operating

activities TSIC 15 (revised 2014) Operating leases - Incentives TSIC 25 (revised 2014) Income taxes - changes in the tax status of an entity or its

shareholders TSIC 27 (revised 2014) Evaluating the substance of transactions involving the legal

form of a lease TSIC 29 (revised 2014) Service concession arrangements: Disclosures TSIC 31 (revised 2014) Revenue - barter transactions involving advertising services TSIC 32 (revised 2014) Intangible assets - Web site costs TFRIC 1 (revised 2014) Changes in existing decommissioning, restoration and similar

liabilities TFRIC 4 (revised 2014) Determining whether an arrangement contains a lease TFRIC 5 (revised 2014) Rights to interests arising from decommissioning, restoration

and environmental rehabilitation funds TFRIC 7 (revised 2014) Applying the restatement approach under TAS29 Financial

reporting in hyperinflationary economies TFRIC 10 (revised 2014) Interim financial reporting and impairment TFRIC 12 (revised 2014) Service concession arrangements TFRIC 13 (revised 2014) Customer loyalty programmes TFRIC 15 (revised 2014) Agreements for the construction of real estate TFRIC 17 (revised 2014) Distributions of non-cash assets to owners TFRIC 18 (revised 2014) Transfers of assets from customers

MEDIA REVOLUTIONIST

Annual Report 2015


18



standards and related interpretations (Cont’d)

2.2.2 New financial reporting standards, amendments accounting standards and financial reporting standards and related interpretations which are effective for the periods beginning on or after 1 January 2016. These standards are not early adopted.

a) Amendments accounting standards and financial reporting standards and related interpretation

with major changes to the Group are as follows:

TAS 16 (revised 2015) Property, plant and equipment TAS 19 (revised 2015) Employee benefits TAS 24 (revised 2015) Related party disclosures TAS 27 (revised 2015) Separate financial statements TAS 36 (revised 2015) Impairment of assets TAS 38 (revised 2015) Intangible assets TAS 40 (revised 2015) Investment property TAS 41 Agriculture TFRS 2 (revised 2015) Share-based payment TFRS 3 (revised 2015) Business combinations TFRS 4 (revised 2015) Insurance contracts TFRS 8 (revised 2015) Operating segments TFRS 10 (revised 2015) Consolidated financial statements TFRS 12 (revised 2015) Disclosure of interests in other entities TFRS 13 (revised 2015) Fair value measurement TFRIC 21 Levies TAS 16 (revised 2015),’Property, plant and equipment’ clarifies how the gross carrying amount and the accumulated depreciation are treated where an entity uses the revaluation model. TAS 19 (revised 2015), ‘Employee benefits’ is amended to apply to contributions from employees or third parties to defined benefit plans and to clarify the accounting treatment of such contributions. The amendment distinguishes between contributions that are linked to service only in the period in which they arise and those linked to service in more than one period. TAS 24 (revised 2015),’Related party disclosures’ includes as a related party an entity that provides key management personnel services to the reporting entity or to the parent of the reporting entity (the ‘management entity’). Disclosure of the amounts charged to the reporting entity is required. TAS 27 (revised 2015) allows an investment entity that is exempted from consolidating its subsidiaries presenting separate financial statements as its only financial statements. It requires the investment entity to measure its investment in subsidiaries at fair value through profit or loss. TAS 36 (revised 2015), ‘Impairment of assets’ is amended to provide additional disclosure requirement when the recoverable amount of the assets is measured at fair value less costs of disposal. The disclosures include 1) the level of fair value hierarchy, 2) when fair value measurement categorised within level 2 and level 3, disclosures is required for valuation technique and key assumption. TAS 38 (revised 2015), ‘Intangible assets’ is amended to clarify how the gross carrying amount and the accumulated amortisation are treated where an entity uses the revaluation model.


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2.2.2 New financial reporting standards, amendments accounting standards and financial reporting standards and related interpretations which are effective for the periods beginning on or after 1 January 2016. These standards are not early adopted. (Cont’d)


with major changes to the Group are as follows: (Cont’d) TAS 40 (revised 2015),’Investment property’ clarifies that TFRS 3 should be applied when determining whether an acquisition of an investment property is a business combination. TAS 41, ‘Agriculture’� requires biological assets including agricultural produce, harvested product of the entity’s biological assets, to be measured at fair value less cost to sell. The practical guide on TAS 41 issued by the FAP excludes bearer plant from the scope of TAS 41. The guide required bearer plant to be measured at cost less accumulated depreciation and impairment losses, if any, according to TAS 16. TFRS 2 (revised 2015), ‘Share based payments’ clarifies the definition of a ‘vesting condition’ and separately defines ‘performance condition’ and ‘service condition’. TFRS 3 (revised 2015), ‘Business combinations’ clarifies i) an obligation to pay contingent consideration which meets the definition of a financial instrument as a financial liability or equity, on the basis of the definitions in TAS 32, ‘Financial instruments: Presentation’ (when announced) or other applicable standards. It also clarifies that all non-equity contingent consideration is measured at fair value at each reporting date, with changes in value recognised in profit and loss, and ii) TFRS 3 does not apply to the accounting for the formation of any joint venture under TFRS 11. TFRS 4 (revised 2015) applies to all insurance contracts (including reinsurance contracts) that an entity issues and to reinsurance contracts that it holds. This standard is not relevant to the Group’s operations. TFRS 8 (revised 2015), ‘Operating segments’ requires disclosure of the judgements made by management in aggregating operating segments. It is also amended to require a reconciliation of segment assets to the entity’s assets when segment assets are reported to chief operating decision maker. TFRS 10 (revised 2015) ‘Consolidated financial statements’ is amended to define an investment entity and introduce an exception from consolidation. These amendments mean that many funds and similar entities will be exempt from consolidating most of their subsidiaries. Instead, they will measure them at fair value through profit or loss. TFRS 12 (revised 2015) introduces disclosures that an investment entity needs to disclose. TFRS 13 (revised 2015), ’Fair value measurement’ is amended to clarify that the portfolio exception in TFRS 13 applies to all contracts (including non-financial contracts) within the scope of TAS 39 (when announced) or IFRS 9 (when announced). TFRIC 21, ‘Levies’, the Interpretation addresses the accounting for a liability to pay a levy if that liability is within the scope of TAS 37 (revised 2015). It also addresses the accounting for a liability to pay a levy whose timing and amount is certain. The Group’s management are assessing the impact of those standards to the Group’s financial statements.


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with major changes to the Group are as follows: (Cont’d) TAS 40 (revised 2015),’Investment property’ clarifies that TFRS 3 should be applied when determining whether an acquisition of an investment property is a business combination. TAS 41, ‘Agriculture’� requires biological assets including agricultural produce, harvested product of the entity’s biological assets, to be measured at fair value less cost to sell. The practical guide on TAS 41 issued by the FAP excludes bearer plant from the scope of TAS 41. The guide required bearer plant to be measured at cost less accumulated depreciation and impairment losses, if any, according to TAS 16. TFRS 2 (revised 2015), ‘Share based payments’ clarifies the definition of a ‘vesting condition’ and separately defines ‘performance condition’ and ‘service condition’. TFRS 3 (revised 2015), ‘Business combinations’ clarifies i) an obligation to pay contingent consideration which meets the definition of a financial instrument as a financial liability or equity, on the basis of the definitions in TAS 32, ‘Financial instruments: Presentation’ (when announced) or other applicable standards. It also clarifies that all non-equity contingent consideration is measured at fair value at each reporting date, with changes in value recognised in profit and loss, and ii) TFRS 3 does not apply to the accounting for the formation of any joint venture under TFRS 11. TFRS 4 (revised 2015) applies to all insurance contracts (including reinsurance contracts) that an entity issues and to reinsurance contracts that it holds. This standard is not relevant to the Group’s operations. TFRS 8 (revised 2015), ‘Operating segments’ requires disclosure of the judgements made by management in aggregating operating segments. It is also amended to require a reconciliation of segment assets to the entity’s assets when segment assets are reported to chief operating decision maker. TFRS 10 (revised 2015) ‘Consolidated financial statements’ is amended to define an investment entity and introduce an exception from consolidation. These amendments mean that many funds and similar entities will be exempt from consolidating most of their subsidiaries. Instead, they will measure them at fair value through profit or loss. TFRS 12 (revised 2015) introduces disclosures that an investment entity needs to disclose. TFRS 13 (revised 2015), ’Fair value measurement’ is amended to clarify that the portfolio exception in TFRS 13 applies to all contracts (including non-financial contracts) within the scope of TAS 39 (when announced) or IFRS 9 (when announced). TFRIC 21, ‘Levies’, the Interpretation addresses the accounting for a liability to pay a levy if that liability is within the scope of TAS 37 (revised 2015). It also addresses the accounting for a liability to pay a levy whose timing and amount is certain. The Group’s management are assessing the impact of those standards to the Group’s financial statements.

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b) Amendments accounting standards and financial reporting standards and related interpretations


TAS 1 (revised 2015) Presentation of financial statements TAS 2 (revised 2015) Inventories TAS 7 (revised 2015) Statement of cash flows TAS 8 (revised 2015) Accounting policies, changes in accounting estimates and errors TAS 10 (revised 2015) Events after the reporting period TAS 11 (revised 2015) Construction contracts TAS 12 (revised 2015) Income taxes TAS 17 (revised 2015) Leases TAS 18 (revised 2015) Revenue TAS 20 (revised 2015) Accounting for government grants and disclosure of government assistance TAS 21 (revised 2015) The effects of changes in foreign exchange rates TAS 23 (revised 2015) Borrowing costs TAS 26 (revised 2015) Accounting and reporting by retirement benefit plans TAS 28 (revised 2015) Investments in associates and joint ventures TAS 29 (revised 2015) Financial reporting in hyperinflationary economies TAS 33 (revised 2015) Earnings per share TAS 34 (revised 2015) Interim financial reporting TAS 37 (revised 2015) Provisions, contingent liabilities and contingent assets TFRS 5 (revised 2015) Non-current assets held for sale and discontinued operations TFRS 6 (revised 2015) Exploration for and evaluation of mineral resources TFRS 11 (revised 2015) Joint arrangements TSIC 10 (revised 2015) Government assistance - No specific relation to operating activities TSIC 15 (revised 2015) Operating leases - Incentives TSIC 25 (revised 2015) Income taxes - changes in the tax status of an entity or its shareholders TSIC 27 (revised 2015) Evaluating the substance of transactions involving the legal form of a lease TSIC 29 (revised 2015) Service concession arrangements: Disclosures TSIC 31 (revised 2015) Revenue - barter transactions involving advertising services TSIC 32 (revised 2015) Intangible assets - Web site costs TFRIC 1 (revised 2015) Changes in existing decommissioning, restoration and similar liabilities TFRIC 4 (revised 2015) Determining whether an arrangement contains a lease TFRIC 5 (revised 2015) Rights to interests arising from decommissioning, restoration and environmental rehabilitation funds TFRIC 7 (revised 2015) Applying the restatement approach under TAS29 Financial reporting in hyperinflationary economies TFRIC 10 (revised 2015) Interim financial reporting and impairment TFRIC 12 (revised 2015) Service concession arrangements TFRIC 13 (revised 2015) Customer loyalty programmes TFRIC 14 (revised 2015) TAS 19 - The limit on a defined benefit asset, minimum funding requirements and their interaction TFRIC 15 (revised 2015) Agreements for the construction of real estate TFRIC 17 (revised 2015) Distributions of non-cash assets to owners TFRIC 18 (revised 2015) Transfers of assets from customers TFRIC 20 (revised 2015) Stripping costs in the production phase of a surface mine


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2.3 Group Accounting - Investments in subsidiaries

(1) Subsidiaries Subsidiaries are all entities over which the group has control. The group controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases. The group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred. If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is re-measured to fair value at the acquisition date; any gains or losses arising from such re-measurement are recognised in profit or loss. Any contingent consideration to be transferred by the group is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability is recognised either in profit or loss or as a change to other comprehensive income. Contingent consideration that is classified as equity is not re-measured, and its subsequent settlement is accounted for within equity. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the Group’s share of the identifiable net assets acquired is recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognised directly in statement of comprehensive income. Intercompany transactions, balances and unrealised gains or loss on transactions between Group companies are eliminated. Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. A list of the Group’s principal subsidiaries is set out in Note 12.

(2) Transactions and non-controlling interests

The Group treats transactions with non-controlling interests as transactions with equity owners of the Group. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity. When the Group ceases to have control, any retained interest in the entity is re-measured to its fair value, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities.


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(1) Subsidiaries Subsidiaries are all entities over which the group has control. The group controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases. The group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred. If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is re-measured to fair value at the acquisition date; any gains or losses arising from such re-measurement are recognised in profit or loss. Any contingent consideration to be transferred by the group is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability is recognised either in profit or loss or as a change to other comprehensive income. Contingent consideration that is classified as equity is not re-measured, and its subsequent settlement is accounted for within equity. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the Group’s share of the identifiable net assets acquired is recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognised directly in statement of comprehensive income. Intercompany transactions, balances and unrealised gains or loss on transactions between Group companies are eliminated. Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. A list of the Group’s principal subsidiaries is set out in Note 12.

(2) Transactions and non-controlling interests

The Group treats transactions with non-controlling interests as transactions with equity owners of the Group. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity. When the Group ceases to have control, any retained interest in the entity is re-measured to its fair value, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities.

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(3) Associates

Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognised at cost, and the carrying amount is increased or decreased to recognise the investor’s share of the profit or loss of the investee after the date of acquisition. The group’s investment in associates includes goodwill identifies on acquisition. If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income is reclassified to profit or loss where appropriate. The Group’s share of its associates’ post-acquisition profits or losses is recognised in the profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate. The Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this the case, the group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognises the amount adjacent to share of profit/(loss) of associates in the income statement. Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group. Dilution gains and losses arising in investments in associates are recognised in the profit or loss. In the Company’s separated financial statements, investments in associates are accounted for at cost less impairment. Cost is adjusted to reflect changes in consideration arising from contingent consideration amendments. Cost also includes direct attributable costs of investment. A list of the Group’s principal associates is set out in Note 13.

2.4 Foreign currency translation

(a) Functional and presentation currency

Items included in the financial statements of each of the group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Thai Baht, which is the Company’s functional and the Company’s presentation currency.

(b) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit or loss. When a gain or loss on a non-monetary item is recognised in other comprehensive income, any exchange component of that gain or loss is recognised in other comprehensive income. Conversely, when a gain or loss on a non-monetary item is recognised in profit and loss, any exchange component of that gain or loss is recognised in profit and loss.


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2.5 Cash and cash equivalents

Cash comprises cash on hand, deposit held at call with banks but exclude deposits with banks that are held to maturity, certificates of deposit issued by commercial banks and financial institutions, and restricted deposits. Cash equivalents comprise short-term highly liquid investments with maturities of three months or less from the date of acquisition. In the consolidated and company statements of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less.

2.6 Trade accounts receivable Trade accounts receivable are recognised initially at original invoice amount and subsequently measured at the remaining amount less any allowance for doubtful receivables based on a review of all outstanding amounts at the year-end. The amount of the allowance is the differences between the carrying amount of receivable and the amount expected to be collected. Bad debts are recognised in the profit or loss within administrative expense.

2.7 Inventories

Inventories are presented in the statement of financial position at the lower of cost or net realisable value. Cost is determined on the first-in, first-out method. The cost of purchase comprises both the purchase price and costs directly attributable to the acquisition of the inventory, such as import duties and transportation charge, less all attributable discounts. The cost of finished goods and work in process : movie, drama, CD and others comprise direct production cost, making a film and other production cost. Net realisable value is the estimate of the selling price in the ordinary course of business, less the cost of completion and selling expense. Allowance is made, where necessary, for obsolete, slow-moving and defective inventories.

2.8 Plant and equipment Plant and equipment are stated at historical cost less accumulated depreciation and allowance for impairment of assets. Initial cost included other direct cost related to assets acquisition. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. Depreciation of other assets is calculated using the straight-line method to write off the cost of each asset, to their residual value over the estimate useful lives as follows: Buildings 20 years Buildings improvements 8 years 7 months Machineries and equipment 5 - 10 years Furniture, fixtures and office equipment 5 - 10 years Motor vehicles 5 years The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount. Gains and losses on disposal of plant and equipment are calculated by comparing net proceeds from disposal of assets with assets’ carrying amount and are taken into other income and other expenses.


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2.5 Cash and cash equivalents

Cash comprises cash on hand, deposit held at call with banks but exclude deposits with banks that are held to maturity, certificates of deposit issued by commercial banks and financial institutions, and restricted deposits. Cash equivalents comprise short-term highly liquid investments with maturities of three months or less from the date of acquisition. In the consolidated and company statements of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less.

2.6 Trade accounts receivable Trade accounts receivable are recognised initially at original invoice amount and subsequently measured at the remaining amount less any allowance for doubtful receivables based on a review of all outstanding amounts at the year-end. The amount of the allowance is the differences between the carrying amount of receivable and the amount expected to be collected. Bad debts are recognised in the profit or loss within administrative expense.

2.7 Inventories

Inventories are presented in the statement of financial position at the lower of cost or net realisable value. Cost is determined on the first-in, first-out method. The cost of purchase comprises both the purchase price and costs directly attributable to the acquisition of the inventory, such as import duties and transportation charge, less all attributable discounts. The cost of finished goods and work in process : movie, drama, CD and others comprise direct production cost, making a film and other production cost. Net realisable value is the estimate of the selling price in the ordinary course of business, less the cost of completion and selling expense. Allowance is made, where necessary, for obsolete, slow-moving and defective inventories.

2.8 Plant and equipment Plant and equipment are stated at historical cost less accumulated depreciation and allowance for impairment of assets. Initial cost included other direct cost related to assets acquisition. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. Depreciation of other assets is calculated using the straight-line method to write off the cost of each asset, to their residual value over the estimate useful lives as follows: Buildings 20 years Buildings improvements 8 years 7 months Machineries and equipment 5 - 10 years Furniture, fixtures and office equipment 5 - 10 years Motor vehicles 5 years The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount. Gains and losses on disposal of plant and equipment are calculated by comparing net proceeds from disposal of assets with assets’ carrying amount and are taken into other income and other expenses.

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2.9 License for operation right in spectrum of digital television

The digital television licence consists of expenditure that are directly attributable to the acquisition of the commercial digital terrestrial television license at national level for a news channel category, is measured at cash price equivalent instalments discounted to present value using a discount rate, quoted by bank, for this particular purpose less accumulated amortisation and impairment losses. The difference between the cash price equivalent and the total payments to be made is recognised as a financial cost over the license fee payment periods, amortised from the date that it is ready to provide service. Amortisation of digital television license is based on a straight-line basic over the estimated useful lives of ��years.

2.10 Intangible assets

Production cost of drama and showbiz Production cost of drama and showbiz are carried at cost less accumulated amortisation and allowance impairment losses (if any). During the year 2015, the Group changed the amortisation method from amortised based on projected revenues to amortised based on actual on-air times. Copyright of others Copyright of others are carried at cost less accumulated amortisation and impairment losses (if any). The Group amortized copyright base on straight line method over the term of relevant agreements. Copyright of musical master tape Copyright of musical master tape have indefinite useful lives. The Group does not amortised them but tests for any impairment. Computer software Costs associated with maintaining computer software programmes are recognised as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group is recognised as intangible assets when the following criteria are met: x it is technically feasible to complete the software product so that it will be available for use; x management intends to complete the software product and use or sell it; x there is an ability to use or sell the software product; x it can be demonstrated how the software product will generate probable future economic benefits; x adequate technical, financial and other resources to complete the development and to use or sell the

software product are available; and x the expenditure attributable to the software product during its development can be reliably measured. Directly attributable costs that are capitalised as part of the software product include the software development employee costs and an appropriate portion of relevant overheads. Other development expenditures that do not meet these criteria are recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an intangible asset in a subsequent period. Computer software development costs recognised as intangible assets are amortised using the straight-line method over their estimated useful lives, which does not exceed 10 years.


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2.11 Impairment of assets

Assets that have an indefinite useful life, for example goodwill, are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the carrying amount of the assets exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest level for which there are separately identifiable cash flows. Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date.

2.12 Leases - where a Group company is the leasee

Finance leases

The Group leases certain plants and equipment. Leases of plants or equipment where the Group has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the inception of the lease at the lower of the fair value of the leased property and the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in other long-term payables. The interest element of the finance cost is charged to profit or loss over the lease period. The plants or equipment acquired under finance leases is depreciated over the shorter period of the useful life of the asset and the lease term.

Operating leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease.

2.13 Borrowings

Borrowings are recognised initially at the proceeds received (net of transaction costs incurred). In subsequent periods, borrowings are stated at amortised cost using the effective yield method. Any difference between proceeds (net transaction costs) and the redemption value is recognised in the statement of comprehensive income over the period of the borrowings.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent that there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the end of reporting date.

2.14 Current and deferred income taxes

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case the tax is also recognised in other comprehensive income or directly in equity, respectively.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of reporting period in the countries where the company’s subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.


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2.11 Impairment of assets

Assets that have an indefinite useful life, for example goodwill, are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the carrying amount of the assets exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest level for which there are separately identifiable cash flows. Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date.

2.12 Leases - where a Group company is the leasee

Finance leases

The Group leases certain plants and equipment. Leases of plants or equipment where the Group has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the inception of the lease at the lower of the fair value of the leased property and the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in other long-term payables. The interest element of the finance cost is charged to profit or loss over the lease period. The plants or equipment acquired under finance leases is depreciated over the shorter period of the useful life of the asset and the lease term.

Operating leases

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease.

2.13 Borrowings

Borrowings are recognised initially at the proceeds received (net of transaction costs incurred). In subsequent periods, borrowings are stated at amortised cost using the effective yield method. Any difference between proceeds (net transaction costs) and the redemption value is recognised in the statement of comprehensive income over the period of the borrowings.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent that there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the end of reporting date.

2.14 Current and deferred income taxes

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case the tax is also recognised in other comprehensive income or directly in equity, respectively.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of reporting period in the countries where the company’s subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

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2.14 Current and deferred income taxes (Cont’d)

Deferred tax is recognised, using the liability method, on temporary differences arising from differences between the tax base of assets and liabilities and their carrying amounts in the financial statements. However, the deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Deferred tax is provided on temporary differences arising from investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

2.15 Employee benefit obligations

Group companies operate various retirement benefits schemes. The Group has both defined benefit and defined contribution plans. A defined contribution plan is a retirement plan under which the Group pays fixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. The Group pays contributions to a separate fund which is managed by an external fund manager in accordance with the provident fund Act. B.E. 2530. The Group has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available. A defined benefit plan is a retirement plan that is not a defined contribution plan. Typically defined benefit plans define an amount of retirement benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability recognised in the statement of financial position in respect of defined benefit retirement plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using market yield of high-quality government bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related retirement liability. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. Past-service costs are recognised immediately in profit or loss, unless the changes to the pension plan are conditional on the employees remaining in service for a specified period of time (the vesting period). In this case, the past-service costs are amortised on a straight-line basis over the vesting period.


27


2.16 Financial assets and financial liabilities

Financial assets carried on the statement of financial position include cash and cash equivalents, trade and other accounts receivable, short-term borrowing to a subsidiary, other current assets and other non-current assets. Financial liabilities carried on the statement of financial position include short-term borrowings from financial institutions, trade and other accounts payable, short-term borrowings from related companies, other current liabilities, liability under finance lease agreements, payable for cost of license for operation right in spectrum of digital television and employee benefit obligations. The particular recognition methods adopted are disclosed in the individual accounting policy statements associated with each item. The Company enters into forward foreign currency exchange contracts to protect the Company from movements in exchange rates by establishing the rate at which a foreign currency liability will be settled. The forward foreign currency exchange contracts are not recognised in the financial statements on inception but only when they are settled according to the contract terms.

2.17 Provisions - general

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.

2.18 Share capital Ordinary shares and non-redeemable preference shares with (if any) discretionary dividends are classified as equity. Other shares including mandatory redeemable preference shares are classified as liabilities. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Where any Group company purchases the Company’s equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’ s equity holders until the shares are cancelled or reissued. Where such shares are subsequently reissued, any consideration received, net of any directly attributable incremental transact costs and the related income tax effects, is included in equity attributable to the Company’s equity holders.

2.19 Revenue recognition Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the Group’s activities. Revenue is shown net of value-added tax, returns, rebates and discounts, and after eliminating sales within the Group. 2.19.1 Revenue from sales of goods

Revenue from sales of goods is recognised when significant risks and rewards of ownership of the goods are transferred to the buyer


27


2.16 Financial assets and financial liabilities

Financial assets carried on the statement of financial position include cash and cash equivalents, trade and other accounts receivable, short-term borrowing to a subsidiary, other current assets and other non-current assets. Financial liabilities carried on the statement of financial position include short-term borrowings from financial institutions, trade and other accounts payable, short-term borrowings from related companies, other current liabilities, liability under finance lease agreements, payable for cost of license for operation right in spectrum of digital television and employee benefit obligations. The particular recognition methods adopted are disclosed in the individual accounting policy statements associated with each item. The Company enters into forward foreign currency exchange contracts to protect the Company from movements in exchange rates by establishing the rate at which a foreign currency liability will be settled. The forward foreign currency exchange contracts are not recognised in the financial statements on inception but only when they are settled according to the contract terms.

2.17 Provisions - general

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.

2.18 Share capital Ordinary shares and non-redeemable preference shares with (if any) discretionary dividends are classified as equity. Other shares including mandatory redeemable preference shares are classified as liabilities. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Where any Group company purchases the Company’s equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’ s equity holders until the shares are cancelled or reissued. Where such shares are subsequently reissued, any consideration received, net of any directly attributable incremental transact costs and the related income tax effects, is included in equity attributable to the Company’s equity holders.

2.19 Revenue recognition Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the Group’s activities. Revenue is shown net of value-added tax, returns, rebates and discounts, and after eliminating sales within the Group. 2.19.1 Revenue from sales of goods

Revenue from sales of goods is recognised when significant risks and rewards of ownership of the goods are transferred to the buyer

MEDIA REVOLUTIONIST

Annual Report 2015


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2.19 Revenue recognition 2.19.2 Revenue from rendering of services

a) Revenue from sales of advertising and promotion being the revenue from the sales of advertising media,

i.e., the media of TV, radio, modern trade and others, is recognised when service has been provided. b) Revenue from event is recognised upon performance completed. c) Revenue from production activity are recognised based on the proportion of completed service. d) Television station sublease income is recognised over the period of the sublease. e) Revenue from concert is recognised when the concert has been exhibited. f) Revenue from artist is recognised when the service has been provided. g) Revenue from digital downloads are recognised once it has been downloaded. h) Management income is recognised when service has been provided.

2.19.3 Revenue from copyright

a) Revenue from music copyright is recognised once the copyright has been delivered or recognised on

a straight-line basis over the agreement period. b) Revenue from film copyright is recognised when the film have been exhibited.

2.19.4 Revenue from interest income Interest income is recognised on a time proportion basis, taking account of the principal outstanding and the effective rate over the period to maturity, when it is determined that such income will accrue to the Group.

2.19.5 Dividend income

Dividend income is recognised when the right to receive payment is established.

2.20 Finance costs Finance costs comprise interest expense and fee from short-term borrowings from a financial institutions and related companies and interest expense from liabilities under finance lease contracts.

2.21 Dividends Dividends and interim dividends are recorded in the consolidated and company’s financial statements in the period in which they are approved by the shareholders and board of directors, respectively.

2.22 Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.


29

3 Financial risk management

3.1 Financial risk factors

The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance.

Risk management is carried out by the finance department. The finance department identifies, evaluates and hedges financial risks in close co-operation with the Group’s operating units. The principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative and non-derivative financial instruments, and investment excess liquidity.

3.1.1 Foreign exchange risk

The principal finance risk faced by the Group are exchange rate risk as certain transactions are entered into in foreign currencies. Foreign exchange forward contracts are taken out to protect the currency risk in future purchase.

However, as at 31 December 2015 and 2014, there are no outstanding foreign exchange forward contract.

3.1.2 Interest rate risk

The interest rate risk is the risk that future movements in market interest rates will affect the results of the Company’s operations and its cash flows. The Group’s exposure to interest rate risk relates primarily to its deposits with financial institutions and borrowings. The Group realised that the risk of fluctuation in the interest rate risk did not affect significantly to the Group’s cash flows. However, the management believe that the effect of interest rate fluctuation will not affect materially to the Group.

3.1.3 Credit risk

The Group has no significant concentrations of credit risk. The Group has policies in place to ensure that sales of products and services are made to customers with an appropriate credit history. Derivative counterparties and cash transactions are limited to high credit quality financial institutions.

3.1.4 Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Due to the dynamic nature of the underlying business, the Group Treasury aims at maintaining flexibility in funding by keeping committed credit lines available.

3.2 Fair value estimation

When a financial instrument is traded in an active market, its quoted market price provides the best evidence of fair value. The quoted market price for an asset held or liability to be issued is usually the current bid price and, for an asset to be acquired or liability held, it is the current offer or asking price. When the current bid and offer prices are unavailable, the price of the most recent transaction may provide evidence of the current fair value provided that there has not been a significant change in economic circumstances between the transaction date and the reporting date. When the Group has matching asset and liability positions, it may appropriately use mid-market prices as a basis for establishing fair values.

When there is infrequent activity in a market, the market is not well established or small volumes are traded relative to the number of trading units of a financial instrument to be valued, quoted market prices may not be indicative of the fair value of the instrument. In these circumstances, as well as when a quoted market price is not available, estimation techniques may be used to determine the fair value with sufficient reliability to satisfy the Group. Techniques that are well established in financial markets include reference to the current market value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models. In applying discounted cash flow analysis, an enterprise uses a discount rate equal to the prevailing market rate of interest for financial instruments having substantially the same terms and characteristics, including the creditworthiness of the debtor, the remaining term over which the contractual interest rate is fixed, the remaining term for repayment of the principal and the currency in which payments are to be made.

The fair values less any estimated credit adjustments for financial assets and liabilities with a maturity of less than one year are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate available to the Group for similar financial instruments.


29

3 Financial risk management

3.1 Financial risk factors

The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance.

Risk management is carried out by the finance department. The finance department identifies, evaluates and hedges financial risks in close co-operation with the Group’s operating units. The principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative and non-derivative financial instruments, and investment excess liquidity.

3.1.1 Foreign exchange risk

The principal finance risk faced by the Group are exchange rate risk as certain transactions are entered into in foreign currencies. Foreign exchange forward contracts are taken out to protect the currency risk in future purchase.

However, as at 31 December 2015 and 2014, there are no outstanding foreign exchange forward contract.

3.1.2 Interest rate risk

The interest rate risk is the risk that future movements in market interest rates will affect the results of the Company’s operations and its cash flows. The Group’s exposure to interest rate risk relates primarily to its deposits with financial institutions and borrowings. The Group realised that the risk of fluctuation in the interest rate risk did not affect significantly to the Group’s cash flows. However, the management believe that the effect of interest rate fluctuation will not affect materially to the Group.

3.1.3 Credit risk

The Group has no significant concentrations of credit risk. The Group has policies in place to ensure that sales of products and services are made to customers with an appropriate credit history. Derivative counterparties and cash transactions are limited to high credit quality financial institutions.

3.1.4 Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Due to the dynamic nature of the underlying business, the Group Treasury aims at maintaining flexibility in funding by keeping committed credit lines available.

3.2 Fair value estimation

When a financial instrument is traded in an active market, its quoted market price provides the best evidence of fair value. The quoted market price for an asset held or liability to be issued is usually the current bid price and, for an asset to be acquired or liability held, it is the current offer or asking price. When the current bid and offer prices are unavailable, the price of the most recent transaction may provide evidence of the current fair value provided that there has not been a significant change in economic circumstances between the transaction date and the reporting date. When the Group has matching asset and liability positions, it may appropriately use mid-market prices as a basis for establishing fair values.

When there is infrequent activity in a market, the market is not well established or small volumes are traded relative to the number of trading units of a financial instrument to be valued, quoted market prices may not be indicative of the fair value of the instrument. In these circumstances, as well as when a quoted market price is not available, estimation techniques may be used to determine the fair value with sufficient reliability to satisfy the Group. Techniques that are well established in financial markets include reference to the current market value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models. In applying discounted cash flow analysis, an enterprise uses a discount rate equal to the prevailing market rate of interest for financial instruments having substantially the same terms and characteristics, including the creditworthiness of the debtor, the remaining term over which the contractual interest rate is fixed, the remaining term for repayment of the principal and the currency in which payments are to be made.

The fair values less any estimated credit adjustments for financial assets and liabilities with a maturity of less than one year are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate available to the Group for similar financial instruments.

MEDIA REVOLUTIONIST

Annual Report 2015


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4 Critical accounting estimates, assumptions and judgements

Estimates, assumptions and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined below. (a) Deferred tax

Deferred tax assets come from the estimation of some temporary difference effects which is probable to utilise tax benefit. Management’s estimation comes from an assumption based on an available future income and any factors or external exposures which might affect the projected future performance. The Group also considered the utilisation of the past tax losses and assessed the estimation on a conservative basis.

(b) Employee benefit obligations The present value of the employee benefit obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for employee benefits include the discount rate. Any changes in these assumptions will have an impact on the carrying amount of employee benefit obligations. The Group determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the employee benefit obligations. In determining the appropriate discount rate, the Group considers the market yield of government bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related employee benefit liability. Other key assumptions for employee benefit obligations are based in part on current market conditions. Additional information is disclosed in Note 23.

(c) License operation right in spectrum of digital television and intangible assets The initial recognised and measure of license operation right in spectrum of digital television and intangible assets and subsequent impairment testing, require management to make estimates of cash flows to be generated by the asset or the cash generating units and to choose a suitable discount rate in order to calculate the present value of those cash flows.

5 Capital risk management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.


31

6 Retrospective adjustment and reclassification

Retrospective adjustment x Deferred tax recognition

During the year ended 31 December 2015, the Company corrected an error relating to the deferred tax recognition from temporary differences for employee benefit obligations, allowance for doubtful accounts (not sue but meet the criteria of write-off to bad debt in tax side). License for operation right in spectrum of digital television and allowance for slow moving. The Company corrected by applying retrospective adjustments.

x License for operation right in spectrum of digital television During the year ended �� December ��, the Company corrected an error relating to the Group presented digital television license at cost less accumulated amortisation and recognised digital television license payable initially at cost less attributable transaction charges. Due to the payment term of digital television license is beyond the normal credit term of National Broadcasting and Telecommunications Commission (“NTBC”), the Group is required to compare the cost of digital television license with the cash price equivalent based on present value of instalments at the recognition date and recognise the difference between this amount and the total payments as finance costs over the period of payment term of digital television license. Therefore, the Company corrected by applying retrospective adjustment.

Reclassification During the year ended 31 December 2015, the Company reclassified the comparative figures to conform to changes in presentation in current year. The effects from retrospective adjustment and reclassification to the statement of financial position as at 31 December 2014 and the related consolidated and company statements of comprehensive income for the year ended 31 December 2014 and unappropriated retain earnings as at 1 January 2014 and 31 December 2014 are summarised as follows: Consolidated Debit (Credit) from Debit (Credit) After As previously retrospective from adjustment and reported adjustment reclassification reclassification Baht Baht Baht Baht Unappropriated - retained earnings as at 1 January 2014 353,341,832 15,090,027 - 368,431,859

Consolidated statement of financial position as at 31 December 2014

Current assets

Trade account receivable - others (net) 863,142,805 - (863,142,805) - Trade accounts receivable and other receivable (net) - - 1,100,765,448 1,100,765,448 Inventories (net) 159,855,843 - (53,089,223) 106,766,620 Accrued income 147,699,485 - (147,699,485) - Revenue Department receivable 30,592,899 - �30,592,899� - Value added tax - - 25,693,651 25,693,651 Other current assets 138,922,018 - (132,321,443) 6,600,575

Non-current assets

Property, plant and equipment (net) 313,235,057 - 74,995,500 388,230,557 Deposit for broadcasting system equipment 74,995,500 - (74,995,500) - License for operation right in spectrum of digital television 2,161,816,667 (224,502,140) - 1,937,314,527 Intangible assets (net) 304,326,652 - 68,306,223 372,632,875 Deferred tax assets (net) 97,723,292 24,828,410 - 122,551,702

Current liabilities

Trade accounts payable and other payable 152,568,581 - 685,558,373 838,126,954 Current portion of payable for cost of license for ��operation right in spectrum of digital television 302,500,000 (67,151,117) - 235,348,883 Current portion of employee benefit obligations 4,406,669 - (4,406,669) - Unearned revenues – others 206,545,244 - (206,545,244) - Accrued expenses 563,155,440 - (563,155,440) - Accrued income tax - - 84,101,631 84,101,631 Other current liabilities 152,319,470 - (152,180,334) 139,136 Provision for goods returned - - 36,734,933 36,734,933 Value added tax - - 57,379,026 57,379,026 Withholding tax payable - - 23,338,086 23,338,086


31

6 Retrospective adjustment and reclassification

Retrospective adjustment x Deferred tax recognition

During the year ended 31 December 2015, the Company corrected an error relating to the deferred tax recognition from temporary differences for employee benefit obligations, allowance for doubtful accounts (not sue but meet the criteria of write-off to bad debt in tax side). License for operation right in spectrum of digital television and allowance for slow moving. The Company corrected by applying retrospective adjustments.

x License for operation right in spectrum of digital television During the year ended �� December ��, the Company corrected an error relating to the Group presented digital television license at cost less accumulated amortisation and recognised digital television license payable initially at cost less attributable transaction charges. Due to the payment term of digital television license is beyond the normal credit term of National Broadcasting and Telecommunications Commission (“NTBC”), the Group is required to compare the cost of digital television license with the cash price equivalent based on present value of instalments at the recognition date and recognise the difference between this amount and the total payments as finance costs over the period of payment term of digital television license. Therefore, the Company corrected by applying retrospective adjustment.

Reclassification During the year ended 31 December 2015, the Company reclassified the comparative figures to conform to changes in presentation in current year. The effects from retrospective adjustment and reclassification to the statement of financial position as at 31 December 2014 and the related consolidated and company statements of comprehensive income for the year ended 31 December 2014 and unappropriated retain earnings as at 1 January 2014 and 31 December 2014 are summarised as follows: Consolidated Debit (Credit) from Debit (Credit) After As previously retrospective from adjustment and reported adjustment reclassification reclassification Baht Baht Baht Baht Unappropriated - retained earnings as at 1 January 2014 353,341,832 15,090,027 - 368,431,859

Consolidated statement of financial position as at 31 December 2014

Current assets

Trade account receivable - others (net) 863,142,805 - (863,142,805) - Trade accounts receivable and other receivable (net) - - 1,100,765,448 1,100,765,448 Inventories (net) 159,855,843 - (53,089,223) 106,766,620 Accrued income 147,699,485 - (147,699,485) - Revenue Department receivable 30,592,899 - �30,592,899� - Value added tax - - 25,693,651 25,693,651 Other current assets 138,922,018 - (132,321,443) 6,600,575

Non-current assets

Property, plant and equipment (net) 313,235,057 - 74,995,500 388,230,557 Deposit for broadcasting system equipment 74,995,500 - (74,995,500) - License for operation right in spectrum of digital television 2,161,816,667 (224,502,140) - 1,937,314,527 Intangible assets (net) 304,326,652 - 68,306,223 372,632,875 Deferred tax assets (net) 97,723,292 24,828,410 - 122,551,702

Current liabilities

Trade accounts payable and other payable 152,568,581 - 685,558,373 838,126,954 Current portion of payable for cost of license for ��operation right in spectrum of digital television 302,500,000 (67,151,117) - 235,348,883 Current portion of employee benefit obligations 4,406,669 - (4,406,669) - Unearned revenues – others 206,545,244 - (206,545,244) - Accrued expenses 563,155,440 - (563,155,440) - Accrued income tax - - 84,101,631 84,101,631 Other current liabilities 152,319,470 - (152,180,334) 139,136 Provision for goods returned - - 36,734,933 36,734,933 Value added tax - - 57,379,026 57,379,026 Withholding tax payable - - 23,338,086 23,338,086

MEDIA REVOLUTIONIST

Annual Report 2015


32

6 Retrospective adjustment and reclassification (Cont’d)

The effects from retrospective adjustment and reclassification to the statement of financial position as at 31 December 2014 and the related consolidated and company statements of comprehensive income for the year ended 31 December 2014 and unappropriated retain earnings as at 1 January 2014 and 31 December 2014 are ummarized as follows: (Cont’d) Consolidated Debit (Credit) from Debit (Credit) After As previously retrospective from adjustment and reported adjustment reclassification reclassification Baht Baht Baht Baht Non-current liabilities Payable for cost of license for operation right in spectrum of digital television 1,584,000,000 (116,406,401) - 1,467,593,599 Provision for other losses - - 3,704,832 3,704,832 Employee benefit obligations 60,944,815 - 4,406,669 65,351,484 Deferred tax liability (net) 6,102,160 (911,138) - 5,191,022 Other non-current liability 9,693,925 - (3,676,535) 6,017,390 Unappropriated - retained earnings as at 31 December 2014 397,585,773 (15,205,078) - 382,380,696 Consolidated statement of comprehensive income for the year ended 31 December 2014 Revenues Other income 26,619,607 - 305,673 26,925,280 Expenses Cost of sales and services (2,920,664,109) 10,171,485 (26,581,379) (2,941,074,003) Administrative expenses (649,935,128) - 22,066,436 (627,868,692) Other expenses - - (3,983,057) (3,983,057) Amortisation of employee benefit expenses (8,591,010) - 8,591,010 - Finance costs (26,685,649) (51,116,107) - (77,801,765) Income tax (118,015,993) 10,962,943 (398,684) (107,451,734) Profit for the year 397,625,314 (29,981,680) - 367,643,634 Earnings per share for profit attributable to the equity holders of the parent (Baht) 0.3770 0.0305 - 0.3465 Diluted earnings per share for profit attribute to the equity holders of the parent (Baht) 0.3770 0.0305 - 0.3465 Other comprehensive income - Change in deferred tax asset - Actuarial loss - (313,424) - (313,424)


33


The effects from retrospective adjustment and reclassification to the statement of financial position as at 31 December 2014 and the related consolidated and company statements of comprehensive income for the year ended 31 December 2014 and unappropriated retain earnings as at 1 January 2014 and 31 December 2014 are ummarized as follows: (Cont’d) Company Debit (Credit) from Debit (Credit) After As previously retrospective from adjustment and reported adjustment reclassification reclassification Baht Baht Baht Baht Unappropriated – retained earnings as at 1 January 2014 334,421,811 12,634,834 - 347,056,645 Company statement of financial position as at 31 December 2014 Current assets Trade accounts receivable - Others (net) 260,647,747 - (260,647,747) - - Related parties 256,499,115 - (256,499,115) - Trade accounts receivable and other receivable (net) - - 797,712,877 797,712,877 Inventory (net) 7,678,274 - (2,094,546) 5,583,728 Accrued income 104,456,562 - (104,456,562) - Declared dividend 136,496,178 - (136,496,178) - Revenue Department receivable 2,431,043 - (2,431,043) - Other current assets 47,540,310 - (44,990,855) 2,549,455

Non-current assets Property, plant and equipment (net) 295,177,150 - 74,995,500 370,172,650 Deposit for broadcasting system equipment 74,995,500 - (74,995,500) - Intangible assets (net) 125,944,153 - 2,094,546 128,038,699 Deferred tax assets (net) 74,278,731 14,087,415 - 88,366,146 Current liabilities Trade accounts payable and others payable 99,463,875 - 385,426,649 484,890,524 Trade accounts payable and others - related parties 56,670,641 - (56,670,641) - Current portion of employee benefit obligations 4,406,669 - (4,406,669) - Unearned revenues - related parties 35,403,079 - (35,403,079) - Unearned revenues - others 31,586,607 - (31,586,607) - Accrued expenses 261,766,322 - (261,766,322) - Other current liabilities 77,295,901 - (77,295,901) - Provision for goods returned - - 36,734,933 36,734,933 Value added tax - - 27,071,760 27,071,760 Withholding tax payable - - 5,680,585 5,680,585 Non-current liabilities Employee benefit obligations 52,300,565 - 4,406,669 56,707,234 Other non-current liability - - 916,094 916,094 Unappropriated - retained earnings as at 31 December 2014 346,906,206 14,087,415 - 360,993,621


33


The effects from retrospective adjustment and reclassification to the statement of financial position as at 31 December 2014 and the related consolidated and company statements of comprehensive income for the year ended 31 December 2014 and unappropriated retain earnings as at 1 January 2014 and 31 December 2014 are ummarized as follows: (Cont’d) Company Debit (Credit) from Debit (Credit) After As previously retrospective from adjustment and reported adjustment reclassification reclassification Baht Baht Baht Baht Unappropriated – retained earnings as at 1 January 2014 334,421,811 12,634,834 - 347,056,645 Company statement of financial position as at 31 December 2014 Current assets Trade accounts receivable - Others (net) 260,647,747 - (260,647,747) - - Related parties 256,499,115 - (256,499,115) - Trade accounts receivable and other receivable (net) - - 797,712,877 797,712,877 Inventory (net) 7,678,274 - (2,094,546) 5,583,728 Accrued income 104,456,562 - (104,456,562) - Declared dividend 136,496,178 - (136,496,178) - Revenue Department receivable 2,431,043 - (2,431,043) - Other current assets 47,540,310 - (44,990,855) 2,549,455

Non-current assets Property, plant and equipment (net) 295,177,150 - 74,995,500 370,172,650 Deposit for broadcasting system equipment 74,995,500 - (74,995,500) - Intangible assets (net) 125,944,153 - 2,094,546 128,038,699 Deferred tax assets (net) 74,278,731 14,087,415 - 88,366,146 Current liabilities Trade accounts payable and others payable 99,463,875 - 385,426,649 484,890,524 Trade accounts payable and others - related parties 56,670,641 - (56,670,641) - Current portion of employee benefit obligations 4,406,669 - (4,406,669) - Unearned revenues - related parties 35,403,079 - (35,403,079) - Unearned revenues - others 31,586,607 - (31,586,607) - Accrued expenses 261,766,322 - (261,766,322) - Other current liabilities 77,295,901 - (77,295,901) - Provision for goods returned - - 36,734,933 36,734,933 Value added tax - - 27,071,760 27,071,760 Withholding tax payable - - 5,680,585 5,680,585 Non-current liabilities Employee benefit obligations 52,300,565 - 4,406,669 56,707,234 Other non-current liability - - 916,094 916,094 Unappropriated - retained earnings as at 31 December 2014 346,906,206 14,087,415 - 360,993,621

MEDIA REVOLUTIONIST

Annual Report 2015


34


The effects from retrospective adjustment and reclassification to the statement of financial position as at 31 December 2014 and the related consolidated and company statements of comprehensive income for the year ended 31 December 2014 and unappropriated retain earnings as at 1 January 2014 and 31 December 2014 are summarised as follows: (Cont’d) Company Debit (Credit) from Debit (Credit) After As previously retrospective from adjustment and reported adjustment reclassification reclassification Baht Baht Baht Baht Company statement of comprehensive income for the year ended 31 December 2014

Revenues

Other income 534,624,871 - 646,602 535,271,473 Expenses

Cost of sales and services (1,419,941,766) - (29,796,275) (1,449,738,041) Administrative expenses (503,645,675) - 21,046,233 (482,599,442) Other expenses (914,882) (914,882) Amortisation of employee benefit expenses (7,930,865) - (7,930,865) - Income tax 41,437,804 (112,463) 1,861,528 43,186,869 Profit for year 338,309,913 340,171,441 Loss per share for profit attributable to the equity holders of the parent (Baht) 0.3438 0.0015 - 0.3453 Diluted loss per share for profit attribute to to the equity holders of the parent (Baht) 0.3438 0.0015 - 0.3453 Other comprehensive income - Change in deferred tax asset - Actuarial loss - (408,947) - (408,947)

7 Cash and cash equivalents Consolidated Company 2015 2014 2015 2014 Baht Baht Baht Baht

Cash on hand 6,804,963 6,215,577 4,056,559 4,818,404 Cash at banks - savings accounts 677,505,069 374,504,598 441,841,839 147,309,119 - current accounts 72,800,736 814,130 72,711,710 784,082 - 3-month fixed deposits accounts 1,019 1,009 1,019 1,009

757,111,787 381,535,314 518,611,127 152,912,614 As at 31 December 2015, savings accounts carry interest at the rates of 0.30% - 1.70% per annum (2014 : 0.40% - 1.60% per annum) As at 31 December 2015, fixed deposits accounts (3-month) carry interest at the rates of 0.9% - 1.00% per annum (2014 : 1.10% - 1.25% per annum).

8 Short-term investments

Consolidated Company 2015 2014 2015 2014 Baht Baht Baht Baht

Cash at bank fixed deposits accounts (12-month) 4,522,302 4,464,840 - - As at 31 December 2015, fixed deposits accounts (12-month) carry interest at the rates of 1.00% per annum (2014 : 1.05% per annum).


35

9 Trade and other accounts receivable (net)

Consolidated Company Restated Restated 2015 2014 2015 2014 Note Baht Baht Baht Baht Trade accounts receivable -�others 730,219,610 899,891,795 258,584,219 294,151,286 -�related companies 33 b) - - 529,447,172 256,499,115 Other accounts receivable - others 53,685,998 54,479,118 46,037,055 45,981,830 - related companies - 68,089 - - Accrued income -�others 123,040,971 153,386,911 92,074,160 102,557,285 Accrued dividend income - - 126,995,830 136,496,178 Advance payments -�employees 11,241,829 3,450,306 2,392,480 2,045,712 -�related companies 33 b) - - 142,797 375,447 Accrued interest income -�others - 15,869 - - -�related companies 33 b) - - 9,339,040 6,476,211 Prepaid expenses - others 88,584,614 101,358,892 51,638,703 43,700,309

1,006,773,022 1,212,650,980 1,116,651,456 888,283,373 Less Allowance for doubtful accounts - Trade accounts receivable - others (60,499,530) (36,742,550) (36,194,460) (33,503,539) - Other accounts receivables - others (53,253,082) (53,841,137) (45,731,399) (45,731,399) - Accrued income - others (1,760,103) (5,687,425) (1,760,103) (1,020,094) - Advance payment - staff - (58,276) - - - Accrued interest income - others - (7,500) - - -�related companies 33 b) - - (2,787,070) (3,556,839) - Prepaid expenses - others (15,548,644) (15,548,644) (6,758,625) (6,758,625)

(131,061,359) (111,885,532) (93,231,657) (90,570,496)

875,711,663 1,100,765,448 1,023,419,799 797,712,877 Trade accounts receivable classified by aging are as follows: Consolidated Company Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht Others Current 364,700,544 407,971,310 116,215,330 131,725,540 Overdue ��Less than 3 months 270,706,750 401,877,831 98,025,610 97,239,969 ��3 - 6 months 21,168,060 49,164,628 1,849,897 27,701,798 ��6 - 12 months 24,990,970 6,238,951 5,327,366 5,564,850 ��Over 12 months 48,653,286 34,639,075 37,166,016 31,919,129

730,219,610 899,891,795 258,584,219 294,151,286

Consolidated Company Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht Related companies Current - - 123,574,107 108,630,638 Overdue ��Less than 3 months - - 71,952,455 60,914,526 ��3 - 6 months - - 79,418,617 79,136,932 ��6 - 12 months - - 119,732,553 3,247,839 ��Over 12 months - - 134,769,440 4,569,180

- - 529,447,172 256,499,115


35

9 Trade and other accounts receivable (net)

Consolidated Company Restated Restated 2015 2014 2015 2014 Note Baht Baht Baht Baht Trade accounts receivable -�others 730,219,610 899,891,795 258,584,219 294,151,286 -�related companies 33 b) - - 529,447,172 256,499,115 Other accounts receivable - others 53,685,998 54,479,118 46,037,055 45,981,830 - related companies - 68,089 - - Accrued income -�others 123,040,971 153,386,911 92,074,160 102,557,285 Accrued dividend income - - 126,995,830 136,496,178 Advance payments -�employees 11,241,829 3,450,306 2,392,480 2,045,712 -�related companies 33 b) - - 142,797 375,447 Accrued interest income -�others - 15,869 - - -�related companies 33 b) - - 9,339,040 6,476,211 Prepaid expenses - others 88,584,614 101,358,892 51,638,703 43,700,309

1,006,773,022 1,212,650,980 1,116,651,456 888,283,373 Less Allowance for doubtful accounts - Trade accounts receivable - others (60,499,530) (36,742,550) (36,194,460) (33,503,539) - Other accounts receivables - others (53,253,082) (53,841,137) (45,731,399) (45,731,399) - Accrued income - others (1,760,103) (5,687,425) (1,760,103) (1,020,094) - Advance payment - staff - (58,276) - - - Accrued interest income - others - (7,500) - - -�related companies 33 b) - - (2,787,070) (3,556,839) - Prepaid expenses - others (15,548,644) (15,548,644) (6,758,625) (6,758,625)

(131,061,359) (111,885,532) (93,231,657) (90,570,496)

875,711,663 1,100,765,448 1,023,419,799 797,712,877 Trade accounts receivable classified by aging are as follows: Consolidated Company Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht Others Current 364,700,544 407,971,310 116,215,330 131,725,540 Overdue ��Less than 3 months 270,706,750 401,877,831 98,025,610 97,239,969 ��3 - 6 months 21,168,060 49,164,628 1,849,897 27,701,798 ��6 - 12 months 24,990,970 6,238,951 5,327,366 5,564,850 ��Over 12 months 48,653,286 34,639,075 37,166,016 31,919,129

730,219,610 899,891,795 258,584,219 294,151,286

Consolidated Company Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht Related companies Current - - 123,574,107 108,630,638 Overdue ��Less than 3 months - - 71,952,455 60,914,526 ��3 - 6 months - - 79,418,617 79,136,932 ��6 - 12 months - - 119,732,553 3,247,839 ��Over 12 months - - 134,769,440 4,569,180

- - 529,447,172 256,499,115

MEDIA REVOLUTIONIST

Annual Report 2015


36

10 Inventories�(net)

Consolidated Company Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht Finished goods: Films and Music ,Tapes, CDs, VCDs, DVDs, movie and others 5,367,046 10,436,364 5,366,428 10,425,502 Beauty products 52,920,879 1,349,112 - - Souvenirs 17,020,844 - 17,020,844 -

Total finished goods 75,308,769 11,785,476 22,387,272 10,425,502 Work in process: movie and others TV Program 1,325,560 898,484 30,000 538,650 Telemovies - 1,944,710 - - Film - 24,330 - 2,330 Concert and production house 3,527,445 433,865 - 47,000 Events 1,201,787 2,941,730 1,015,065 1,474,240

Total work in process 6,054,792 6,243,119 1,045,065 2,062,220

Raw material 2,463,875 1,062,661 2,463,876 1,062,660 Satellite television receivers 79,498,003 96,370,961 - - Advance payment for inventories 2,591,000 - - - Others 37,667,926 1,877,964 33,108,161 -

Total 203,584,365 117,340,181 59,164,374 13,550,382 Less Allowance for obsolete inventories (40,488,928) (10,573,561) (4,336,439) (7,966,654)

Inventories (net) 163,095,437 106,766,620 54,667,935 5,583,728 The cost of inventories recognised as expense and included in cost of sales in the consolidated and company financial statements amounted to Baht 333,812,861 and Baht 241,197,573 (2014 : Baht 141,829,555 and Baht 14,764,464) respectively. The Company reversed allowance for obsolete inventory which was recognised in the consolidated and company financial statements Baht of 29,915,367 and Baht 3,630,215 (2014 : Baht 7,490,556 and Baht 6,061,236) respectively. The amount reversed has been included in cost of sales in the statement of comprehensive income.

11 Other current assets (net)

Consolidated Company Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht Refundable deposits 94,431,832 2,951,879 94,431,832 608,173 Guarantees 2,595,375 2,991,377 1,721,219 2,088,919 Others 1,438,282 1,745,923 1,056,592 471,967 98,465,489 7,253,179 97,209,643 3,169,059 Less Allowance for impairment (480,802) (652,604) (480,802) (619,604)

Other current assets (net) 97,984,687 6,600,575 96,782,841 2,549,455


37

12 Investments in subsidiaries (net)

Investments in subsidiaries which recorded by the cost method as at 31 December 2015 and 31 December 2014, consisted of:

Percentage of shareholding

2015 2014 Company name Nature of business Registered in % %

Operating subsidiaries R.S. Television Co., Ltd. Digital TV business Thailand 100% 100% Starz (Thailand) Co., Ltd. ��(Formerly: K.master Co., Ltd.) Event organizer and beauty products Thailand 100% 100% RS International Broadcasting and Event and sport activity organizer Thailand 83% 83% ��Sport Management Co., Ltd. Concert and event organizer Thailand 100% 100% D-Media and Production Co., Ltd. Radio business and event organizer Thailand 100% 100% Coolism Co., Ltd. Copyrights collection Thailand 100% 100% Thai Copyright Collection Co., Ltd. Event organizer Thailand 100% 100% Aladdin House Co., Ltd. Event organizer Thailand 100% 100% Blu Fairy Co., Ltd. Event organizer Thailand 100% 100% Very Well Co., Ltd. ��(Formerly: Magique (Thailand) Co., Ltd.) Event organizer Thailand 100% 100% Poema Co., Ltd. TV program and event organizer Thailand 100% 100% Non-operating subsidiaries RS In-Store Media Co., Ltd. Media and event organizer Thailand 65% 65% Bangkok Organizer Co., Ltd. Concert and event organizer Thailand 100% 100% Avant Co., Ltd. Event organizer Thailand 100% 100% R Siam Co., Ltd. Music production Thailand 100% 100% S-One Sport Co., Ltd. Rental football stadium Thailand 100% 100% R.S. Sportmaster Co., Ltd. Production TV Program and event. Thailand 76% 76% RS Film and Distribution Co., Ltd. Distribution Movie and production Thailand 100% 100%


37

12 Investments in subsidiaries (net)

Investments in subsidiaries which recorded by the cost method as at 31 December 2015 and 31 December 2014, consisted of:

Percentage of shareholding

2015 2014 Company name Nature of business Registered in % %

Operating subsidiaries R.S. Television Co., Ltd. Digital TV business Thailand 100% 100% Starz (Thailand) Co., Ltd. ��(Formerly: K.master Co., Ltd.) Event organizer and beauty products Thailand 100% 100% RS International Broadcasting and Event and sport activity organizer Thailand 83% 83% ��Sport Management Co., Ltd. Concert and event organizer Thailand 100% 100% D-Media and Production Co., Ltd. Radio business and event organizer Thailand 100% 100% Coolism Co., Ltd. Copyrights collection Thailand 100% 100% Thai Copyright Collection Co., Ltd. Event organizer Thailand 100% 100% Aladdin House Co., Ltd. Event organizer Thailand 100% 100% Blu Fairy Co., Ltd. Event organizer Thailand 100% 100% Very Well Co., Ltd. ��(Formerly: Magique (Thailand) Co., Ltd.) Event organizer Thailand 100% 100% Poema Co., Ltd. TV program and event organizer Thailand 100% 100% Non-operating subsidiaries RS In-Store Media Co., Ltd. Media and event organizer Thailand 65% 65% Bangkok Organizer Co., Ltd. Concert and event organizer Thailand 100% 100% Avant Co., Ltd. Event organizer Thailand 100% 100% R Siam Co., Ltd. Music production Thailand 100% 100% S-One Sport Co., Ltd. Rental football stadium Thailand 100% 100% R.S. Sportmaster Co., Ltd. Production TV Program and event. Thailand 76% 76% RS Film and Distribution Co., Ltd. Distribution Movie and production Thailand 100% 100%

MEDIA REVOLUTIONIST

Annual Report 2015

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ter C

o., L

td. a

re n

ot m

ater

ial,

the

Com

pany

th

eref

ore

did

not d

iscl

ose

the

finan

cial

info

rmat

ion

of th

ese

subs

idia

ries.


39

13 Investment in an associated company (net)

Baht Percentage Issued and paid-up share capital Percentage of shareholding Nature of 2015 2014 2015 2014 Name business Baht Baht Baht Baht

Idea Power Co., Ltd. Organizer 20,000,000 20,000,000 25.00 25.00

Consolidated Investments at equity method Investments at cost method 2015 2014 2015 2014 Baht Baht Baht Baht

Investment in Idea Power Co., Ltd. 5,102,753 5,406,090 6,303,621 6,303,621 Less Allowance for impairment - - (1,200,868) (897,531)

Total investment in an associated company (net) 5,102,753 5,406,090 5,102,753 5,406,090 The net movement of investment in associated company for the years ended 31 December 2015 and 2014 comprise: Consolidated 2015 2014 Baht Baht

Opening net book amount 5,406,090 5,495,813 Share of loss for the year (303,337) (89,723)

Closing net book amount 5,102,753 5,406,090 Summary of financial information of associated company Financial information of Idea Power Co., Ltd. which are accounted for using the equity method. Summary statement of financial position Idea Power Co., Ltd. As at 31 December 2015 2014 Baht Baht Current assets 16,056,439 15,416,466 Non-current assets 150,000 493,424

16,206,439 15,909,890 Current liabilities (73,370) (42,616) Non-current liabilities - -

(73,370) (42,616)

Net assets 16,133,069 15,867,274

Summary statement of comprehensive income Idea Power Co., Ltd.

For the year ended

31 December 2015 2014 Baht Baht

Revenue 20,257,504 1,669,107 Profit before income tax 336,408 1,039,762 Income tax (70,612) (214,895)

Net profit 265,796 824,867

Equity method base on percentage of shareholding 66,449 206,217


39

13 Investment in an associated company (net)

Baht Percentage Issued and paid-up share capital Percentage of shareholding Nature of 2015 2014 2015 2014 Name business Baht Baht Baht Baht

Idea Power Co., Ltd. Organizer 20,000,000 20,000,000 25.00 25.00

Consolidated Investments at equity method Investments at cost method 2015 2014 2015 2014 Baht Baht Baht Baht

Investment in Idea Power Co., Ltd. 5,102,753 5,406,090 6,303,621 6,303,621 Less Allowance for impairment - - (1,200,868) (897,531)

Total investment in an associated company (net) 5,102,753 5,406,090 5,102,753 5,406,090 The net movement of investment in associated company for the years ended 31 December 2015 and 2014 comprise: Consolidated 2015 2014 Baht Baht

Opening net book amount 5,406,090 5,495,813 Share of loss for the year (303,337) (89,723)

Closing net book amount 5,102,753 5,406,090 Summary of financial information of associated company Financial information of Idea Power Co., Ltd. which are accounted for using the equity method. Summary statement of financial position Idea Power Co., Ltd. As at 31 December 2015 2014 Baht Baht Current assets 16,056,439 15,416,466 Non-current assets 150,000 493,424

16,206,439 15,909,890 Current liabilities (73,370) (42,616) Non-current liabilities - -

(73,370) (42,616)

Net assets 16,133,069 15,867,274

Summary statement of comprehensive income Idea Power Co., Ltd.

For the year ended

31 December 2015 2014 Baht Baht

Revenue 20,257,504 1,669,107 Profit before income tax 336,408 1,039,762 Income tax (70,612) (214,895)

Net profit 265,796 824,867

Equity method base on percentage of shareholding 66,449 206,217

MEDIA REVOLUTIONIST

Annual Report 2015

RS

Publ

ic C

ompa

ny L

imite

d N

otes

to th

e C

onso

lidat

ed a

nd C

ompa

ny F

inan

cial

Sta

tem

ents

Fo

r the

yea

r end

ed 3

1 D

ecem

ber 2

015

40

14

B

uild

ings

and

equ

ipm

ent (

net)

C

onso

lidat

ed (B

aht)

Bui

ldin

gs a

nd

build

ing

impr

ovem

ent

M

achi

nerie

s a

nd

equi

pmen

t

Fu

rnitu

re,

fixtu

res

and

offic

e eq

uipm

ent

M

otor

ve

hicl

es

Con

stru

ctio

n in

pro

gres

s an

d eq

uipm

ent

unde

r in

stal

latio

n

To

tal

A

s at

1 J

anua

ry 2

014

Cos

t 29

,299

,057

19

7,40

2,44

2 37

4,64

3,45

3 35

,429

,295

97

2,92

5 63

7,74

7,17

2 Le

ss A

ccum

ulat

ed d

epre

ciat

ion

(25,

490,

178)

(1

04,3

45,0

57)

(183

,994

,108

) (1

3,47

9,41

5)

-

(3

27,3

08,7

58)

A

llow

ance

for i

mpa

irmen

t -

(421

,922

) -

-

-

(421

,922

)

Net

boo

k am

ount

- R

esta

ted

3,80

8,87

9 92

,635

,463

19

0,64

9,34

5 21

,949

,880

97

2,92

5 31

0,01

6,49

2

For t

he y

ear e

nded

31

Dec

embe

r 201

4

O

peni

ng n

et b

ook

amou

nt -

Res

tate

d 3,

808,

879

92,6

35,4

63

190,

649,

345

21,9

49,8

80

972,

925

310,

016,

492

Add

ition

s 3,

754,

139

16,4

25,2

18

42,6

32,9

67

5,04

1,26

0 92

,863

,328

16

0,71

6,91

2 Tr

ansf

er fr

om c

onst

ruct

ion

in p

rogr

ess

686,

925

5,21

5,50

0 6,

880,

000

-

(1

2,78

2,42

5)

-

W

rite-

off -

cos

t -

(4,8

02,5

08)

(8,8

66,5

74)

-

-

(13,

669,

082)

- acc

umul

ated

dep

reci

atio

n -

4,74

9,31

1 8,

141,

589

-

-

12,8

90,9

00

Dep

reci

atio

n ch

arge

(Not

e 29

) (4

,738

,563

) (2

9,73

5,37

0)

(43,

102,

476)

(4

,570

,178

) -

(82,

146,

557)

R

ever

sal a

llow

ance

for i

mpa

irmen

t -

421,

922

-

-

-

42

1,92

2

Clo

sing

net

boo

k am

ount

- R

esta

ted

3,51

1,38

0 84

,909

,536

19

6,33

4,85

1 22

,420

,962

81

,053

,828

38

8,23

0,55

7

As

at 3

1 D

ecem

ber 2

014

Cos

t 33

,740

,121

21

4,24

0,65

2 41

5,28

9,84

6 40

,470

,555

81

,053

,828

78

4,79

5,00

2 Le

ss A

ccum

ulat

ed d

epre

ciat

ion

(30,

228,

741)

(1

29,3

31,1

16)

(218

,954

,995

) (1

8,04

9,59

3)

-

(3

96,5

64,4

45)

N

et b

ook

amou

nt -

Res

tate

d 3,

511,

380

84,9

09,5

36

196,

334,

851

22,4

20,9

62

81,0

53,8

28

388,

230,

557

155R

S Pu

blic

Com

pany

Lim

ited

Not

es to

the

Con

solid

ated

and

Com

pany

Fin

anci

al S

tate

men

ts

For t

he y

ear e

nded

31

Dec

embe

r 201

5

41

14

Bui

ldin

gs a

nd e

quip

men

t (ne

t) (Cont’d)

C

onso

lidat

ed (B

aht)

Bui

ldin

gs a

nd

build

ing

impr

ovem

ent

M

achi

nerie

s an

d eq

uipm

ent

Fu

rnitu

re,

fixtu

res

and

offic

e eq

uipm

ent

M

otor

ve

hicl

es

Con

stru

ctio

n in

pro

gres

s an

d eq

uipm

ent

unde

r in

stal

latio

n

To

tal

A

s at

1 J

anua

ry 2

015

Cos

t 33

,740

,121

21

4,24

0,65

2 41

5,28

9,84

6 40

,470

,555

81

,053

,828

78

4,79

5,00

2 Le

ss A

ccum

ulat

ed d

epre

ciat

ion

(30,

228,

741)

(1

29,3

31,1

16)

(218

,954

,995

) (1

8,04

9,59

3)

-

(3

96,5

64,4

45)

N

et b

ook

amou

nt -

Res

tate

d 3,

511,

380

84,9

09,5

36

196,

334,

851

22,4

20,9

62

81,0

53,8

28

388,

230,

557

Fo

r the

yea

r end

ed 3

1 D

ecem

ber 2

015

Ope

ning

net

boo

k am

ount

- R

esta

ted

3,51

1,38

0 84

,909

,536

19

6,33

4,85

1 22

,420

,962

81

,053

,828

38

8,23

0,55

7 A

dditi

ons

626,

301

12,2

81,7

00

48,6

58,1

16

12,5

17,0

09

14,2

94,3

50

88,3

77,4

76

Tran

sfer

from

con

stru

ctio

n in

pro

gres

s 66

0,00

0 84

0,00

0 6,

806,

439

-

(8

,306

,439

) -

Writ

e-of

f - c

ost

(1,7

73,4

91)

(23,

078,

967)

(1

8,69

9,03

4)

(392

,523

) -

(43,

944,

015)

- acc

umul

ated

dep

reci

atio

n 1,

601,

079

15,9

58,8

01

17,2

34,5

23

392,

522

-

35

,186

,925

D

epre

ciat

ion

char

ge (N

ote

29)

(2,4

04,2

45)

(26,

292,

995)

(4

9,76

5,03

2)

(5,3

72,4

04)

-

(8

3,83

4,67

6)

C

losi

ng n

et b

ook

amou

nt

2,22

1,02

4 64

,618

,075

20

0,56

9,86

3 29

,565

,566

87

,041

,739

38

4,01

6,26

7

As

at 3

1 D

ecem

ber 2

015

Cos

t 33

,252

,931

20

4,28

3,38

5 45

2,05

5,36

7 52

,595

,041

87

,041

,739

82

9,22

8,46

3 Le

ss A

ccum

ulat

ed d

epre

ciat

ion

(31,

031,

907)

(1

39,6

65,3

10)

(251

,485

,504

) (2

3,02

9,47

5)

-

(4

45,2

12,1

96)

N

et b

ook

amou

nt

2,22

1,02

4 64

,618

,075

20

0,56

9,86

3 29

,565

,566

87

,041

,739

38

4,01

6,26

7

MEDIA REVOLUTIONIST

Annual Report 2015

RS

Publ

ic C

ompa

ny L

imite

d N

otes

to th

e C

onso

lidat

ed a

nd C

ompa

ny F

inan

cial

Sta

tem

ents

Fo

r the

yea

r end

ed 3

1 D

ecem

ber 2

015

42

14

Bui

ldin

gs a

nd e

quip

men

t (ne

t) (Cont’d)

C

ompa

ny (B

aht)

Bui

ldin

gs a

nd

build

ing

impr

ovem

ent

M

achi

nerie

s a

nd

equ

ipm

ent

Fu

rnitu

re,

fixtu

res

and

offic

e eq

uipm

ent

M

otor

ve

hicl

es

Con

stru

ctio

n in

pro

gres

s an

d eq

uipm

ent

und

er

inst

alla

tion

To

tal

A

s at

1 J

anua

ry 2

014

Cos

t 20

,451

,625

12

2,05

0,31

5 34

6,14

1,77

1 35

,429

,295

97

2,92

5 52

5,04

5,93

1 Le

ss A

ccum

ulat

ed d

epre

ciat

ion

(16,

915,

191)

(3

8,77

6,64

5)

(162

,090

,023

) (1

3,47

9,41

5)

-

(2

31,2

61,2

74)

N

et b

ook

amou

nt -

Res

tate

d 3,

536,

434

83,2

73,6

70

184,

051,

748

21,9

49,8

80

972,

925

293,

784,

657

Fo

r the

yea

r end

ed 3

1 D

ecem

ber 2

014

Ope

ning

net

boo

k am

ount

- R

esta

ted

3,53

6,43

4 83

,273

,670

18

4,05

1,74

8 21

,949

,880

97

2,92

5 29

3,78

4,65

7 A

dditi

ons

3,15

4,13

9 12

,492

,368

40

,890

,465

3,

990

92,8

63,3

28

149,

404,

290

Tran

sfer

from

con

stru

ctio

n in

pro

gres

s 68

6,92

5 5,

215,

500

6,88

0,00

0 -

(12,

782,

425)

-

Writ

e-of

f - c

ost

-

(2

0,00

0)

(3,8

75,3

10)

-

-

(3,8

95,3

10)

- a

ccum

ulat

ed d

epre

ciat

ion

-

19

,999

3,

351,

135

-

-

3,37

1,13

4 D

epre

ciat

ion

char

ge (N

ote

29)

(4,3

79,9

94)

(23,

841,

626)

(4

0,00

6,23

8)

(4,2

64,2

63)

-

(7

2,49

2,12

1)

C

losi

ng n

et b

ook

amou

nt -

Res

tate

d 2,

997,

504

77,1

39,9

11

191,

291,

800

17,6

89,6

07

81,0

53,8

28

370,

172,

650

A

s at

31

Dec

embe

r 201

4

C

ost

24,2

92,6

89

139,

738,

183

390,

036,

926

35,4

33,2

85

81,0

53,8

28

670,

554,

911

Less

Acc

umul

ated

dep

reci

atio

n (2

1,29

5,18

5)

(62,

598,

272)

(1

98,7

45,1

26)

(17,

743,

678)

-

(300

,382

,261

)

Net

boo

k am

ount

- R

esta

ted

2,99

7,50

4 77

,139

,911

19

1,29

1,80

0 17

,689

,607

81

,053

,828

37

0,17

2,65

0

157R

S Pu

blic

Com

pany

Lim

ited

Not

es to

the

Con

solid

ated

and

Com

pany

Fin

anci

al S

tate

men

ts

For t

he y

ear e

nded

31

Dec

embe

r 201

5

43

13

Bui

ldin

gs a

nd e

quip

men

t (ne

t) (Cont’d)

C

ompa

ny (B

aht)

Bui

ldin

gs a

nd

build

ing

impr

ovem

ent

M

achi

nerie

s a

nd

equ

ipm

ent

Fu

rnitu

re,

fixtu

res

and

offic

e eq

uipm

ent

M

otor

ve

hicl

es

Con

stru

ctio

n in

pro

gres

s an

d eq

uipm

ent

und

er

inst

alla

tion

To

tal

A

s at

1 J

anua

ry 2

015

Cos

t 24

,292

,689

13

9,73

8,18

3 39

0,03

6,92

6 35

,433

,285

81

,053

,828

67

0,55

4,91

1 Le

ss A

ccum

ulat

ed d

epre

ciat

ion

(21,

295,

185)

(6

2,59

8,27

2)

(198

,745

,126

) (1

7,74

3,67

8)

-

(3

00,3

82,2

61)

N

et b

ook

amou

nt -

Res

tate

d 2,

997,

504

77,1

39,9

11

191,

291,

800

17,6

89,6

07

81,0

53,8

28

370,

172,

650

Fo

r the

yea

r end

ed 3

1 D

ecem

ber 2

015

Ope

ning

net

boo

k am

ount

- R

esta

ted

2,99

7,50

4 77

,139

,911

19

1,29

1,80

0 17

,689

,607

81

,053

,828

37

0,17

2,65

0 A

dditi

ons

772,

401

6,17

8,50

0 37

,951

,774

12

,517

,009

13

,855

,469

71

,275

,153

Tr

ansf

er fr

om c

onst

ruct

ion

in p

rogr

ess

660,

000

840,

000

6,80

6,43

9 -

(8,3

06,4

39)

-

W

rite-

off

- cos

t (2

21,7

47)

(16,

947,

919)

(1

1,76

7,17

0)

(392

,523

) -

(29,

329,

359)

- acc

umul

ated

dep

reci

atio

n 11

2,71

8 10

,934

,109

11

,214

,773

39

2,52

2 -

22,6

54,1

22

Dep

reci

atio

n ch

arge

(Not

e 29

) (2

,449

,042

) (2

3,29

8,17

8)

(45,

923,

454)

(4

,364

,951

) -

(76,

035,

625)

Clo

sing

net

boo

k am

ount

1,

871,

834

54,8

46,4

23

189,

574,

162

25,8

41,6

64

86,6

02,8

58

358,

736,

941

A

s at

31

Dec

embe

r 201

5

C

ost

25,5

03,3

43

129,

808,

764

423,

027,

969

47,5

57,7

71

86,6

02,8

58

712,

500,

705

Less

Acc

umul

ated

dep

reci

atio

n (2

3,63

1,50

9)

(74,

962,

341)

(2

33,4

53,8

07)

(21,

716,

107)

-

(353

,763

,764

)

Net

boo

k am

ount

1,

871,

834

54,8

46,4

23

189,

574,

162

25,8

41,6

64

86,6

02,8

58

358,

736,

941

As a

t 31

Dec

embe

r 201

5, th

e gr

oss

carry

ing

amou

nt o

f ful

ly d

epre

ciat

ed b

uild

ings

and

equ

ipm

ent t

hat a

re s

till i

n us

ed a

s in

clud

ed in

the

cons

olid

ated

and

com

pany

fin

anci

al s

tate

men

ts w

ere

Baht

255

,854

,965

and

Bah

t 220

,958

,459

(201

4 : B

aht 1

84,9

34,5

28 a

nd B

aht 1

46,7

89,7

02),

resp

ectiv

ely.

14

MEDIA REVOLUTIONIST

Annual Report 2015


44

14 Buildings and equipment (net) (Cont’d)

Leased assets included above, where the Company and the subsidiaries are the lessee under the financial lease agreement comprise vehicles as follows : Consolidated Company 2015 2014 2015 2014 Baht Baht Baht Baht Cost of the assets under the financial lease agreements 27,439,701 33,069,701 27,439,701 33,069,701 Less Accumulated depreciation (12,303,902) (15,391,576) (12,303,902) (15,391,576)

Net book amount 15,135,799 17,678,125 15,135,799 17,678,125

15 License for operation right in spectrum of digital television Movement of license for operation right in spectrum of digital television during the years ended 31 December 2015 and 2014 are summarised below. Consolidated Restated 2015 2014 Baht Baht

Cash equivalent value (present value) 2,030,326,376 2,030,326,376 Less Accumulated amortisation (228,268,123) (93,011,849)

1,802,058,253 1,937,314,527 On 25 April 2014, the subsidiary (“ RS Television Co., Ltd.”)�were granted license for operation right in spectrum of digital television for commercial digital terrestrial television licence at national level for a news channel category of total bid amount of Baht 2,265 million (exclusive of VAT) for a period of 15 years (commencing 25 April 2014 to 24 April 2029). The subsidiary was required to make payment under the following payment conditions: 1) For the minimum bid price amounting to Baht 380 million, the amount is divided into 4 instalments and has to

be paid within 3 years (23 May 2017) from the date of acquiring the license. 2) For the exceeding amount of the minimum bid price amounting to Baht 1,885 million, the amount is divided into 6

instalments and has to be paid within 5 years (23 May 2019) from the date of acquiring the license as specified by National Broadcasting and Telecommunications Commission (“NBTC”).

3) The subsidiary placed the letter of guarantee issued by a financial institution for the remaining license fee with NBTC. As at 31 December 2015, the outstanding balance of letter of guarantee was Baht 1,695 million (2014: Baht 2,019 million).

4) Obligation to pay for license are as follows:

For the minimum biding price

For the exceeding amount of the

minimum biding price

Total

No. installments Million Baht Million Baht Million Baht Due for payment

1 190.0 188.5 378.5 11 February�2014 2 114.0 188.5 302.5 23 May�2015 3 38.0 377.0 415.0 23 May�2016 4 38.0 377.0 415.0 23 May�2017 5 - 377.0 377.0 23 May�2018 6 - 377.0 377.0 23 May�2019

Total 380.0 1,885.0 2,265.0

The subsidiary recognised license at the date of license granted at the cash equivalent value (present value).


45

15 License for operation right in spectrum of digital television (Cont’d)

Movement of obligation for the license for operation right in spectrum of digital television as follows: Consolidated Restated 2015 2014 Baht Baht

Opening net book amount 1,886,500,000 - Additions - 2,265,000,000 Repayments (302,500,000) (378,500,000)

Closing net book amount 1,584,000,000 1,886,500,000 As at 31 December 2015 and 2014, the subsidiary has obligation to pay the license for operation right in spectrum of digital television as follows: Consolidated Restated 2015 2014 Baht Baht

License of operation right in spectrum of digital television 1,584,000,000 1,886,500,000 Less future finance charges (116,406,400) (183,557,518)

1,467,593,600 1,702,942,482 Less current portion (361,674,762) (235,348,883)

1,105,918,838 1,467,593,599 As at 31 December 2015 and 2014, the payments to be made in subsequent years are as follows: Consolidated Restated 2015 2014 Due within Baht Baht

1 year 415,000,000 302,500,000 2 - 5 years 1,169,000,000 1,584,000,000

1,584,000,000 1,886,500,000


45

15 License for operation right in spectrum of digital television (Cont’d)

Movement of obligation for the license for operation right in spectrum of digital television as follows: Consolidated Restated 2015 2014 Baht Baht

Opening net book amount 1,886,500,000 - Additions - 2,265,000,000 Repayments (302,500,000) (378,500,000)

Closing net book amount 1,584,000,000 1,886,500,000 As at 31 December 2015 and 2014, the subsidiary has obligation to pay the license for operation right in spectrum of digital television as follows: Consolidated Restated 2015 2014 Baht Baht

License of operation right in spectrum of digital television 1,584,000,000 1,886,500,000 Less future finance charges (116,406,400) (183,557,518)

1,467,593,600 1,702,942,482 Less current portion (361,674,762) (235,348,883)

1,105,918,838 1,467,593,599 As at 31 December 2015 and 2014, the payments to be made in subsequent years are as follows: Consolidated Restated 2015 2014 Due within Baht Baht

1 year 415,000,000 302,500,000 2 - 5 years 1,169,000,000 1,584,000,000

1,584,000,000 1,886,500,000

MEDIA REVOLUTIONIST

Annual Report 2015

RS

Publ

ic C

ompa

ny L

imite

d N

otes

to th

e C

onso

lidat

ed a

nd C

ompa

ny F

inan

cial

Sta

tem

ents

Fo

r the

yea

r end

ed 3

1 D

ecem

ber 2

015

46

16

Inta

ngib

le a

sset

s (n

et)

C

onso

lidat

ed (B

aht)

Com

pany

(Bah

t)

Pr

oduc

tion

Prod

uctio

n

cost

of

cost

of

Pr

oduc

tion

Com

pute

r m

usic

and

Pr

oduc

tion

Com

pute

r m

usic

and

C

opyr

ight

of

cost

of

softw

ares

dr

ama

serie

s

Cop

yrig

ht o

f co

st o

f so

ftwar

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dram

a se

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ic

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a se

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and

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rs

in p

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Tota

l m

usic

dr

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d ot

hers

in

pro

gres

s To

tal

As a

t 1 J

anua

ry 2

014

Cos

t 28

2,57

6,88

8 39

0,89

5,21

6 86

8,30

4,77

9 26

,992

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1,

568,

769,

190

282,

576,

888

377,

895,

216

64,3

96,7

75

24,4

01,3

89

749,

270,

268

Less

A

ccum

ulat

ed a

mor

tisat

ion

(82,

403,

675)

(1

74,8

82,9

26)

(253

,380

,697

) -

(510

,667

,298

) (8

2,40

3,67

5)

(169

,882

,938

) (3

5,49

3,70

2)

-

(2

87,7

80,3

15)

A

llow

ance

for i

mpa

irmen

t (1

21,3

43,1

06)

(174

,242

,368

) (1

4,75

3,30

6)

(2,5

90,9

18)

(312

,929

,698

) (1

21,3

43,1

06)

(166

,242

,356

) -

-

(2

87,5

85,4

62)

Net

boo

k am

ount

- R

esta

ted

78,8

30,1

07

41,7

69,9

22

600,

170,

776

24,4

01,3

89

745,

172,

194

78,8

30,1

07

41,7

69,9

22

28,9

03,0

73

24,4

01,3

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173,

904,

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U�WKH

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ount

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78,8

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07

41,7

69,9

22

600,

170,

776

24,4

01,3

89

745,

172,

194

78,8

30,1

07

41,7

69,9

22

28,9

03,0

73

24,4

01,3

89

173,

904,

491

Add

ition

s -

-

15

0,64

3,52

5 40

0,29

0,78

0 55

0,93

4,30

5 -

-

22

,215

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23

1,12

4,30

4 25

3,34

0,06

7 Tr

ansf

erre

d in

(out

) 7,

297,

600

349,

088,

346

-

35

6,38

5,94

6 -

7,29

7,64

0 24

6,13

3,50

7 -

253,

431,

147

-

W

rite-

off -

cos

t -

-

(2

08,8

28,8

85)

-

(2

08,8

28,8

85)

-

-

-

-

-

- acc

umul

ated

am

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atio

n -

-

20

8,82

8,87

8 -

208,

828,

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-

-

-

-

-

A

mor

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char

ge (N

ote

29)

-

(3

38,0

37,7

96)

(565

,294

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) -

(903

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) -

(276

,610

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) (6

,947

,602

) -

(283

,558

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) A

llow

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for i

mpa

irmen

t (1

5,64

7,43

9)

-

(4

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(20,

140,

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(1

5,64

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9)

-

-

-

(1

5,64

7,43

9)

Clo

sing

net

boo

k am

ount

- R

esta

ted

70,4

80,2

68

52,8

20,4

72

181,

025,

912

68,3

06,2

23

372,

632,

875

70,4

80,3

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11,2

92,6

11

44,1

71,2

34

2,09

4,54

6 12

8,03

8,69

9

As a

t 31

Dec

embe

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C

ost

289,

874,

488

739,

983,

562

810,

119,

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4,61

0 28

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8 62

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3 86

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5 Le

ss

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umul

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n (8

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(512

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) (6

09,8

46,7

15)

-

(1

,205

,171

,112

) (8

2,40

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5)

(446

,493

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) (4

2,44

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4)

-

(5

71,3

38,7

35)

A

llow

ance

for i

mpa

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t (1

36,9

90,5

45)

(174

,242

,368

) (1

9,24

6,79

2)

(2,5

90,9

18)

(333

,070

,623

) (1

36,9

90,5

45)

(166

,242

,356

) -

-

(3

03,2

32,9

01)

Net

boo

k am

ount

- R

esta

ted

70,4

80,2

68

52,8

20,4

72

181,

025,

912

68,3

06,2

23

372,

632,

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70,4

80,3

08

11,2

92,6

11

44,1

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34

2,09

4,54

6 12

8,03

8,69

9

161R

S Pu

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Com

pany

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ited

Not

es to

the

Con

solid

ated

and

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Fin

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tate

men

ts

For t

he y

ear e

nded

31

Dec

embe

r 201

5

47

16

Inta

ngib

le a

sset

s (n

et) (Cont’d)

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onso

lidat

ed (B

aht)

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(Bah

t)

Pr

oduc

tion

Prod

uctio

n

cost

of

cost

of

Pr

oduc

tion

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pute

r m

usic

and

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pute

r m

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and

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ht o

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ic

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in p

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t 1 J

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9,87

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8 73

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2 81

0,11

9,41

9 70

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910,

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289,

874,

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028,

723

86,6

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4,54

6 1,

002,

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A

ccum

ulat

ed a

mor

tisat

ion

(82,

403,

675)

(5

12,9

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22)

(609

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) -

(1

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) (8

2,40

3,67

5)

(446

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) (2

,441

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) -

(571

,338

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wan

ce fo

r im

pairm

ent

(136

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) (1

74,2

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(19,

246,

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� ��

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� (1

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(166

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-

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01)

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boo

k am

ount

- R

esta

ted

70,4

80,2

68

52,8

20,4

72

181,

025,

912

68,3

06,2

23

372,

632,

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70,4

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23

372,

632,

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11

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6 12

8,03

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9 A

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-

-

9,65

8,57

4 26

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7 27

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ansf

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d in

(out

) 5,

947,

262

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(3

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5,

947,

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-

(5,9

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62)

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rite-

off -

cos

t -

(4,9

99,9

72)

(720

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) -

(725

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) -

-

(7

25,0

00)

-

(7

25,0

00)

- a

ccum

ulat

ed a

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4,

999,

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719,

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72

4,72

7,57

7 -

-

22

4,32

1 -

224,

321

Am

ortis

atio

n ch

arge

(Not

e 29

) (2

99,9

99)

(164

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) (1

62,5

34,9

31)

-

(3

27,4

29,6

62)

(299

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,581

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) (8

,071

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) -

(12,

953,

084)

Im

pairm

ent

(15,

802,

735)

-

17,7

01,9

84

2,59

0,91

8 4,

490,

167

(15,

802,

735)

-

-

-

(15,

802,

735)

Clo

sing

net

boo

k am

ount

60

,324

,796

19

9,09

8,58

9 45

,320

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18

,827

,184

32

3,57

1,19

7 60

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6,

711,

413

42,4

70,2

07

160,

000

109,

666,

456

As

at 3

1 D

ecem

ber 2

015

Cos

t 29

5,82

1,75

0 1,

045,

856,

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19,4

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9 29

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3 92

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0 1,

012,

769,

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A

ccum

ulat

ed a

mor

tisat

ion

(82,

703,

674)

(6

72,5

15,4

95)

(52,

654,

057)

-

(807

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) (8

2,70

3,67

4)

(451

,074

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) (5

0,28

8,87

0)

-

(5

84,0

67,4

98)

A

llow

ance

for i

mpa

irmen

t (1

52,7

93,2

80)

(174

,242

,368

) (1

,544

,808

) -

(328

,580

,456

) (1

52,7

93,2

80)

(166

,242

,356

) -

-

(3

19,0

35,6

36)

Net

boo

k am

ount

60

,324

,796

19

9,09

8,58

9 45

,320

,628

18

,827

,184

32

3,57

1,19

7 60

,324

,836

6,

711,

413

42,4

70,2

07

160,

000

109,

666,

456

MEDIA REVOLUTIONIST

Annual Report 2015


48

17 Withholding tax (net)


Withholding tax 139,765,951 104,796,747 69,548,760 49,902,284 Less Allowance for doubtful in recoverable of withholding tax (9,228,415) (12,342,866) - -

130,537,536 92,453,881 69,548,760 49,902,284 18 Deferred tax (net)

The analysis of deferred tax assets and liabilities (net) as at 31 December 2015 and 2014 are as follows: Consolidated Company Restated Restated 2015 2015 2015 2014 Baht Baht Baht Baht Deferred tax assets:

Deferred tax assets to be recovered within 12 months 111,228,506 30,820,706 38,945,349 21,666,275 Deferred tax assets to be recovered after more than 12 months 117,413,048 92,214,000 70,448,204 66,699,871

228,641,554 123,034,706 109,393,553 88,366,146 Deferred tax liabilities:

Deferred tax liabilities to be settled within 12 months (77,800) (5,674,026) (77,800) - Deferred tax liabilities to be settled after more than 12 months (543,375) - (543,375) -

(621,175) (5,674,026) (621,175) -

Deferred tax assets (net) 228,020,379 117,360,680 108,772,378 88,366,146 The movement of deferred taxes for the years ended 31 December 2015 and 2014 comprises the following: Consolidated Company Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht

Opening balance for the year 117,360,680 57,334,341 88,366,146 45,475,761 Increase to the statement of comprehensive income 110,659,699 60,339,763 20,406,232 43,299,332 Decrease to the shareholders’ equity - (313,424) - (408,947)

Closing balance for the year 228,020,379 117,360,680 108,772,378 88,366,146

Deferred tax assets and deferred tax liabilities presented by considering net positon of each taxable unit as at 31 December 2015 and 2014 comprises the following:

Consolidated Company Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht

Deferred tax assets (net) 228,020,379 122,551,702 108,772,378 88,366,146 Deferred tax liabilities (net) - (5,191,022) - -

228,020,379 117,360,680 108,772,378 88,366,146

163R

S Pu

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Com

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Not

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Con

solid

ated

and

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al S

tate

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For t

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ear e

nded

31

Dec

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5

49

18

Def

erre

d ta

x (n

et) (Cont’d)

D

efer

red

tax

asse

ts a

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tax

liabi

lities

pre

sent

ed b

y ne

t tax

taxa

ble

entit

ies

for t

he y

ear e

nded

31

Dec

embe

r 201

5 an

d 20

14 c

ompr

ises

the

follo

win

g:

C

onso

lidat

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Com

pany

Incr

ease

Incr

ease

Incr

ease

(d

ecre

ase)

In

crea

se

(dec

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(d

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to

the

(dec

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e)

to th

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Res

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stat

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t of

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esta

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to th

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1

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ve

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1 Ja

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31 D

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20

15

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me

2015

20

15

inco

me

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me

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erre

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:

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6 5,

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24

7,73

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4 65

8,42

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8,

396,

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34,5

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(1

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36

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on fo

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7 (4

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) -

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g 2,

463,

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066

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MEDIA REVOLUTIONIST

Annual Report 2015

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51

19 Other non-current assets��net�


Refundable deposits 557,673 553,000 557,673 553,000 Guarantees 40,757,901 45,951,796 31,108,243 35,429,884

41,315,574 46,504,796 31,665,916 35,982,884 Less Allowance for impairment of guarantees (10,049,685) (9,146,027) (3,546,027) (3,546,027)

Other non-current asset (net) 31,265,889 37,358,769 28,119,889 32,436,857

20 Trade and other accounts payable� Consolidated Company Restated Restated 2015 2014 2015 2014 Note Baht Baht Baht Baht

Trade accounts payable - other companies 168,813,426 135,142,854 67,251,140 83,385,266 - related companies 33 c) - - 113,953,850 54,783,149 Other accounts payable - other companies 24,213,770 17,986,578 22,710,528 16,078,609 - related companies 33 c) 3,598,412 2,056,912 3,465,566 1,887,492 Unearned revenue - other companies 704,803,756 206,545,245 619,064,055 31,611,607 - related companies 33 c) - - 51,594,944 35,378,080 Accrued expenses - Accrued commission and promotion expenses - other companies 228,498,470 194,114,794 86,988,338 85,357,193 - related companies 33 c) - - - 617,783 - Accrued project expenses - other companies 205,987,287 166,126,135 71,067,871 71,712,089 - related companies 33 c) - - 20,051,654 8,486,643 - Accrued interest expenses - related companies 33 c) - - 130,356 887,354 - Other accrued expenses - other companies 83,272,010 118,677,414 65,714,940 94,659,941 - related companies 33 c) - 137,531 - 45,318

1,419,187,133 840,787,463 1,121,993,242 484,890,524 21 Liabilities under financial lease agreements (net)


Liabilities under financial lease agreements 14,153,197 13,564,857 14,153,197 13,564,857 Less Future finance changes on finance lease (1,081,707) (806,053) (1,081,707) (806,053)

13,071,490 12,758,804 13,071,490 12,758,804 Less Current portion (5,865,272) (7,655,315) (5,865,272) (7,655,315)

7,206,218 5,103,489 7,206,218 5,103,489 As at 31 December 2015 and 31 December 2014, payments to be made for financial lease agreements are as follows: Consolidated Company 2015 2014 2015 2014 Baht Baht Baht Baht

Within 1 year 6,432,135 8,224,316 6,432,135 8,224,316 More than 1 year but no longer than 3 years 7,721,062 5,340,541 7,721,062 5,340,541

14,153,197 13,564,857 14,153,197 13,564,857


51

19 Other non-current assets��net�


Refundable deposits 557,673 553,000 557,673 553,000 Guarantees 40,757,901 45,951,796 31,108,243 35,429,884

41,315,574 46,504,796 31,665,916 35,982,884 Less Allowance for impairment of guarantees (10,049,685) (9,146,027) (3,546,027) (3,546,027)

Other non-current asset (net) 31,265,889 37,358,769 28,119,889 32,436,857

20 Trade and other accounts payable� Consolidated Company Restated Restated 2015 2014 2015 2014 Note Baht Baht Baht Baht

Trade accounts payable - other companies 168,813,426 135,142,854 67,251,140 83,385,266 - related companies 33 c) - - 113,953,850 54,783,149 Other accounts payable - other companies 24,213,770 17,986,578 22,710,528 16,078,609 - related companies 33 c) 3,598,412 2,056,912 3,465,566 1,887,492 Unearned revenue - other companies 704,803,756 206,545,245 619,064,055 31,611,607 - related companies 33 c) - - 51,594,944 35,378,080 Accrued expenses - Accrued commission and promotion expenses - other companies 228,498,470 194,114,794 86,988,338 85,357,193 - related companies 33 c) - - - 617,783 - Accrued project expenses - other companies 205,987,287 166,126,135 71,067,871 71,712,089 - related companies 33 c) - - 20,051,654 8,486,643 - Accrued interest expenses - related companies 33 c) - - 130,356 887,354 - Other accrued expenses - other companies 83,272,010 118,677,414 65,714,940 94,659,941 - related companies 33 c) - 137,531 - 45,318

1,419,187,133 840,787,463 1,121,993,242 484,890,524 21 Liabilities under financial lease agreements (net)


Liabilities under financial lease agreements 14,153,197 13,564,857 14,153,197 13,564,857 Less Future finance changes on finance lease (1,081,707) (806,053) (1,081,707) (806,053)

13,071,490 12,758,804 13,071,490 12,758,804 Less Current portion (5,865,272) (7,655,315) (5,865,272) (7,655,315)

7,206,218 5,103,489 7,206,218 5,103,489 As at 31 December 2015 and 31 December 2014, payments to be made for financial lease agreements are as follows: Consolidated Company 2015 2014 2015 2014 Baht Baht Baht Baht

Within 1 year 6,432,135 8,224,316 6,432,135 8,224,316 More than 1 year but no longer than 3 years 7,721,062 5,340,541 7,721,062 5,340,541

14,153,197 13,564,857 14,153,197 13,564,857

MEDIA REVOLUTIONIST

Annual Report 2015


52

22 Value added tax

Consolidated Company Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht Undue output tax (95,525,631) (82,914,182) (46,430,213) (34,880,479) Undue input tax 61,766,158 30,098,070 11,265,888 5,377,582 Value added tax 26,277,490 21,130,737 8,733,664 2,431,137

(7,481,983) (31,685,375) (26,430,661) (27,071,760) Value added tax present by net position of each taxable unit as at 31 December 2015 and 2014 comprises the following: Consolidated Company Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht Value added tax (assets) 40,928,458 25,693,651 - - Value added tax (liabilities) (48,410,441) (57,379,026) (26,430,661) (27,071,760)

(7,481,983) (31,685,375) (26,430,661) (27,071,760) 23 Employee benefit obligations

Employee benefit obligations as at 31 December 2015 and 2014

Consolidated Company Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht Statement of financial position Employee benefit obligation 85,545,748 65,351,484 74,813,289 56,707,234 The movement of employee benefit obligations as 31 December 2015 and 2014 are as follows: Consolidated Company Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht Opening balance 65,351,484 49,767,218 56,707,234 43,509,995 Current service cost 9,114,836 6,411,248 8,011,683 5,662,666 Past service cost 8,591,010 8,591,010 7,930,865 7,930,865 Interest cost 2,488,418 2,149,132 2,163,507 1,928,294 (Gain) from change in financial assumption - (1,567,124) - (2,044,733) Decrease in obligation from staff from salary of subsidiary - - - (279,853) Closing balance 85,545,748 65,351,484 74,813,289 56,707,234 Consolidated and Company 2015 2014 Baht Baht

Discount rate 3.50% 3.50% Inflation rate ��% ��% Salary increase rate 7.00 - 7.50% 7.00 - 7.50%


53

23 Employee benefit obligations

Sensitivity analysis form each significant assumption are as follows: Impact on defined benefit obligation Increase (Decrease) Consolidated Company Change in 2015 2014 2015 2014 assumption Baht Baht Baht Baht Discount rate Increase by�1 % (9,390,463) (8,583,431) (7,996,726) (7,304,822) Discount rate Decrease by 1% 10,982,712 10,096,983 9,332,597 8,572,160 Salary growth rate Increase by�1 % 11,330,128 9,640,776 9,640,551 8,185,407 Salary growth rate Decrease by 1% (9,843,699) (8,395,473) (8,393,408) (7,144,741) Turnover rate Increase by�20 % (12,038,711) (10,175,883) (10,149,428) (8,550,094) Turnover rate Decrease by 20% 15,096,944 12,666,987 12,665,532 10,584,504 The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the employee benefit obligations to significant actuarial assumptions use the projected unit credit method.

24 Other non-current liabilities Consolidated Company Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht

Deposits received 66,000 14,000 66,000 66,000 Retention payable 17,090,186 6,003,390 10,941,787 850,094

17,156,186 6,017,390 11,007,787 916,094 25 Share capital

25.1 Ordinary shares and prevision on share capital Consolidated and Company

Ordinary shares Ordinary shares Share Permium

Shares Bath Bath

Opening balance as at 1 January 2015 953,866,816 953,866,816 193,593,325 Increase shares capital 68,479,230 68,479,230 61,631,307 Closing balance as at 31 December 2015 1,022,346,046 1,022,346,046 255,224,632 Decrease shares capital (Note 25.2) (12,408,400) (12,408,400) 600,184 Closing balance as at 31 December 2015 1,009,937,646 1,009,937,646 255,824,816 For the year ended 31 December 2014, the Company has registered the increase in share capital with the Ministry of Commerce until 31 December 2014 amount of 68,479,230 shares as a result of warrants exercising. The right of exercising warrants is expired on 19 May 2014.


53

23 Employee benefit obligations

Sensitivity analysis form each significant assumption are as follows: Impact on defined benefit obligation Increase (Decrease) Consolidated Company Change in 2015 2014 2015 2014 assumption Baht Baht Baht Baht Discount rate Increase by�1 % (9,390,463) (8,583,431) (7,996,726) (7,304,822) Discount rate Decrease by 1% 10,982,712 10,096,983 9,332,597 8,572,160 Salary growth rate Increase by�1 % 11,330,128 9,640,776 9,640,551 8,185,407 Salary growth rate Decrease by 1% (9,843,699) (8,395,473) (8,393,408) (7,144,741) Turnover rate Increase by�20 % (12,038,711) (10,175,883) (10,149,428) (8,550,094) Turnover rate Decrease by 20% 15,096,944 12,666,987 12,665,532 10,584,504 The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the employee benefit obligations to significant actuarial assumptions use the projected unit credit method.

24 Other non-current liabilities Consolidated Company Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht

Deposits received 66,000 14,000 66,000 66,000 Retention payable 17,090,186 6,003,390 10,941,787 850,094

17,156,186 6,017,390 11,007,787 916,094 25 Share capital

25.1 Ordinary shares and prevision on share capital Consolidated and Company

Ordinary shares Ordinary shares Share Permium

Shares Bath Bath

Opening balance as at 1 January 2015 953,866,816 953,866,816 193,593,325 Increase shares capital 68,479,230 68,479,230 61,631,307 Closing balance as at 31 December 2015 1,022,346,046 1,022,346,046 255,224,632 Decrease shares capital (Note 25.2) (12,408,400) (12,408,400) 600,184 Closing balance as at 31 December 2015 1,009,937,646 1,009,937,646 255,824,816 For the year ended 31 December 2014, the Company has registered the increase in share capital with the Ministry of Commerce until 31 December 2014 amount of 68,479,230 shares as a result of warrants exercising. The right of exercising warrants is expired on 19 May 2014.

MEDIA REVOLUTIONIST

Annual Report 2015


54

25 Share capital�(Cont’d)

25.2 Treasury shares/treasury shares reserve

On 22 February 2012, the Company’s Board of Director No. 1/2012 passed a resolution to repurchase not more than 26 million shares or not more than 2.9% of the Company’s paid-up capital (As at 31 December 2011 the Company has share capital issued 882,654,428 shares.), the maximum of repurchase amount is not over than Baht 75 million. The repurchase is being made for financial management purposes, since the Company has excess liquidity, and it is to be made through the Stock Exchange of Thailand. The repurchase within 6 months start from 8 March 2012 to 7 September 2012 and the reissue period for the repurchased shares runs for 3 years, beginning 6 months after the completion date of the share repurchase. As at 31 December 2014, the Company has treasury shares 17,700,000 shares, repurchase value totalling Baht 74,671,816 and the market price of treasury shares totalling Baht 297,360,000. On 5 February 2015, the Company has sold treasury shares 441,600 shares at Baht 21.00 per share totaling Baht 9,273,600. On 3 September 2015, the Company has reissue treasury shares 3,000,000 shares at Baht 10.80 to Baht 11.00 per share totalling Baht 32,700,000. On 4 September 2015, the Company has reissue treasury shares 1,850,000 shares at Baht 11.00 to Baht 11.40 per share totalling Baht 20,890,000. On 18 September 2015, the Company has registered with Ministry of Commerce to decrease share capital for outstanding treasury shares which were not resale within the period for 12,408,400 shares of Baht 1 per each. The movement of treasury shares and premium on share capital for the years ended 31 December 2015 and 2014 are as follows : Consolidated and Company Amount of Premium on treasury shares treasury shares Shares Baht Baht Opening balance as at 1 January 2014 17,700,000 74,671,816 - Reissuance - - - Decrease in share capital - - - Closing balance as at 31 December 2014 17,700,000 74,671,816 - Reissuance (5,291,600) (22,324,499) (40,539,101) Decrease in share capital (12,408,400) (52,347,317) 39,938,917 Closing balance as at 31 December 2015 - - (600,184)

25.3 Decrease in share capital of subsidiary

At the subsidiary’s extraordinary meeting on 10 April 2015, the shareholders approved to decrease share capital in an amount of Baht 112,500,000, for the 1,125,000 ordinary shares of Baht 100 per each. The subsidiary company has registered to decrease share capital on 20 April 2015. The subsidiary paid to non-controlling interest amounting to Baht 18,750,000 as a result.

26 Dividend payment

At the Company’s Annual General Shareholders’ Meeting on 22 April 2015, the shareholders approved a dividend payment from the operating results for the year 2014 of Baht 0.18 per share, totally Baht 180,915,596. This dividend was paid on 8 May 2015. At the Company’s Annual General Shareholders’ Meeting on 14 August 2014, the shareholders approved a dividend payment from the operating results for the period ended 30 June 2014 of Baht 0.12 per share, totally Baht 120,555,533. This dividend was paid on 12 September 2014. At the Company’s Annual General Shareholders’ Meeting on 24 April 2014, the shareholders approved a dividend payment from the operating results for the year 2013 of Baht 0.20 per share, totally Baht 190,399,222. This dividend was paid on 8 May 2014.


55

27 Other income

Consolidated Company For the years For the years ended 31 December ended 31 December Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht Net gain from exchange rate 907,276 4,634,174 466,109 (235,764) Interest income 2,454,665 2,957,028 19,099,399 16,324,064 Dividend income (Note 12) - - 369,578,855 407,907,925 Rental income 447,401 1,004,372 4,951,993 24,275,135 Management fee 27,084 - 137,545,089 73,159,581 Pirate of copyright income 30,000,000 - - - Other income 16,967,455 18,329,706 7,506,785 13,840,532 50,803,881 26,925,280 539,148,230 535,271,473

Pirate of copyright income represend income charged from a company for sport pirate of copyright.

28 Other expenses

Consolidated Company For the years For the years ended 31 December ended 31 December Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht Loss from disposal of buildings and equipment 747,323 (305,673) 27,945 (412,045) Loss from write off buildings and equipment (807,675) (1,397,188) (509,063) (1,390,003) Loss on impairment of assets - (1,633,115) - (312,734) Loss on impairment of investment in other companies (303,337) 1,110,177 - Reversal of (loss) from provision 2,045,499 (1,755,861) - 1,199,900 Others (1,017,520) (1,397) (571,216) - 664,290 (3,983,057) (1,052,334) (914,882)

29 Expense by nature

The following significant expenditure items, classified by nature for the years ended 31 December 2015 and 2014, have been charged in the profit before finance costs and income tax:

Consolidated Company For the years For the years ended 31 December ended 31 December Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht Change in inventories of finished goods and work in process (48,628,727) (120,702,324) (44,684,974) 3,791,014 Raw material and consumables used 2,581,080,682 3,109,001,684 1,073,979,405 948,596,231 Staff costs 702,648,956 731,522,416 605,938,364 617,859,893 Depreciation charge (Note 14) 83,834,676 82,146,587 72,492,121 76,035,625 Amortisation charge (Note 15 and 16) 336,074,735 798,244,456 12,953,085 49,638,161 Rental expenses and utilities expenses 111,695,791 112,982,365 93,501,298 89,766,997 Promotion and advertising expenses 235,291,463 19,584,267 96,554,702 8,808,687 Loss from impairment of assets (3,778,393) 20,351,955 13,620,854 15,724,408 Loss from inventory destruction and obsolescence of inventories 18,480,214 37,732,516 3,025,672 2,343,007


55

27 Other income

Consolidated Company For the years For the years ended 31 December ended 31 December Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht Net gain from exchange rate 907,276 4,634,174 466,109 (235,764) Interest income 2,454,665 2,957,028 19,099,399 16,324,064 Dividend income (Note 12) - - 369,578,855 407,907,925 Rental income 447,401 1,004,372 4,951,993 24,275,135 Management fee 27,084 - 137,545,089 73,159,581 Pirate of copyright income 30,000,000 - - - Other income 16,967,455 18,329,706 7,506,785 13,840,532 50,803,881 26,925,280 539,148,230 535,271,473

Pirate of copyright income represend income charged from a company for sport pirate of copyright.

28 Other expenses

Consolidated Company For the years For the years ended 31 December ended 31 December Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht Loss from disposal of buildings and equipment 747,323 (305,673) 27,945 (412,045) Loss from write off buildings and equipment (807,675) (1,397,188) (509,063) (1,390,003) Loss on impairment of assets - (1,633,115) - (312,734) Loss on impairment of investment in other companies (303,337) 1,110,177 - Reversal of (loss) from provision 2,045,499 (1,755,861) - 1,199,900 Others (1,017,520) (1,397) (571,216) - 664,290 (3,983,057) (1,052,334) (914,882)

29 Expense by nature

The following significant expenditure items, classified by nature for the years ended 31 December 2015 and 2014, have been charged in the profit before finance costs and income tax:

Consolidated Company For the years For the years ended 31 December ended 31 December Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht Change in inventories of finished goods and work in process (48,628,727) (120,702,324) (44,684,974) 3,791,014 Raw material and consumables used 2,581,080,682 3,109,001,684 1,073,979,405 948,596,231 Staff costs 702,648,956 731,522,416 605,938,364 617,859,893 Depreciation charge (Note 14) 83,834,676 82,146,587 72,492,121 76,035,625 Amortisation charge (Note 15 and 16) 336,074,735 798,244,456 12,953,085 49,638,161 Rental expenses and utilities expenses 111,695,791 112,982,365 93,501,298 89,766,997 Promotion and advertising expenses 235,291,463 19,584,267 96,554,702 8,808,687 Loss from impairment of assets (3,778,393) 20,351,955 13,620,854 15,724,408 Loss from inventory destruction and obsolescence of inventories 18,480,214 37,732,516 3,025,672 2,343,007

MEDIA REVOLUTIONIST

Annual Report 2015


56

30 Finance costs

Consolidated Company For the years For the years ended 31 December ended 31 December Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht Interest expense from short-term borrowings from financial institutions (13,364,725) (25,661,546) (2,264,438) (4,230,412) Interest expense from short-term borrowings from related companies (Note 33 a)) - (31,178) (1,917,874) (1,951,975) Interest expense for liability under finance lease agreements (569,001) (992,925) (569,001) (992,925) Interest expense from license for operation right in section of digital television (67,151,118) (51,116,107) - - (81,084,844) (77,801,756) (4,751,313) (7,175,312)

31 Income tax

Reconciliation of income tax expense for the years ended 31 December 2015 and 2014 comprises: Consolidated Company For the years For the years ended 31 December ended 31 December Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht

Current income tax on taxable profit for the year (96,492,496) (167,392,815) - - Under recorded prior year income tax (1,409,193) (398,684) (978,357) (112,463) Origination of temporary differences (Note 17) 110,659,699 60,339,765 20,406,232 43,299,332

Total income tax credit (expense) 12,329,876 (107,451,734) 19,427,875 43,186,869 Consolidated Company For the years For the years ended 31 December ended 31 December Restated Restated 2015 2014 2015 2014 Baht Baht Baht Baht

Profit before tax accounting base 119,780,614 475,095,368 417,984,789 296,984,572 Tax calculated at the rate of 20% (2014: 20%) (23,956,123) (95,019,074) (83,596,958) (59,396,914) Tax effect of: Non-deductible expenses (8,610,843) (12,483,652) (6,566,038) 9,289,444 Additional deductible expenses 284,807 295,887 47,562 893,401 Temporary deferred of previously unrecognised deferred tax 3,626,231 153,789 1,384,823 - Allowance for impairment in subsidiaries 42,394,997 - 35,221,072 10,931,816 Tax exemption - dividend received - - 73,915,771 81,581,585 Underecorded prior year income tax (1,409,193) (398,684) (978,357) (112,463)

Tax charge 12,329,876 (107,451,734) 19,427,875 43,186,869


57

32 Earnings (loss) per share

32�� Basic earnings (loss) per share

Basic earnings (loss) per share is calculated by dividing profit (loss) attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the year. Consolidated Company For the years ended For the years ended 31 December 31 December Restated Restated 2015 2014 2015 2014 Profit (loss) attributable to ordinary shareholders (Baht) 121,634,482 340,975,070 437,412,664 339,762,494 Weighted average number of Ordinary shares in issue during the year (shares) 1,006,634,753 983,957,561 1,006,634,753 983,957,561

Basic earnings (loss) per share (Baht) 0.1208 0.3465 0.4345 0.3453 32�� Diluted earnings (loss) per share

The diluted earnings (loss) per share is calculated adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Group has dilutive potential ordinary shares that are warrants. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the warrant. The difference is added to the denominator as an issue of ordinary shares for no consideration. No adjustment is made to earnings (loss). Consolidated Company For the years ended For the years ended 31 December 31 December Restated Restated 2015 2014 2015 2014 Net profit attributable to ordinary shareholders (Baht) - 340,975,070 - 339,762,494 Weighted average number of common shares (basic) (shares) - 983,957,561 - 983,957,561 Weighted average number of common shares (diluted) (shares) - 983,957,561 - 983,957,561

Diluted earnings per shares (Baht) - 0.3465 - 0.3453 On May 19, 2014, which is the last exercise date of the warrants for convert to common share. The remaining unexercised of warrants which is no longer being registered security in the stock Exchange of Thailand. Therefore, financial statements for year ended 31 December 2015 had no diluted earnings per share.


57

32 Earnings (loss) per share

32�� Basic earnings (loss) per share

Basic earnings (loss) per share is calculated by dividing profit (loss) attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the year. Consolidated Company For the years ended For the years ended 31 December 31 December Restated Restated 2015 2014 2015 2014 Profit (loss) attributable to ordinary shareholders (Baht) 121,634,482 340,975,070 437,412,664 339,762,494 Weighted average number of Ordinary shares in issue during the year (shares) 1,006,634,753 983,957,561 1,006,634,753 983,957,561

Basic earnings (loss) per share (Baht) 0.1208 0.3465 0.4345 0.3453 32�� Diluted earnings (loss) per share

The diluted earnings (loss) per share is calculated adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Group has dilutive potential ordinary shares that are warrants. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the warrant. The difference is added to the denominator as an issue of ordinary shares for no consideration. No adjustment is made to earnings (loss). Consolidated Company For the years ended For the years ended 31 December 31 December Restated Restated 2015 2014 2015 2014 Net profit attributable to ordinary shareholders (Baht) - 340,975,070 - 339,762,494 Weighted average number of common shares (basic) (shares) - 983,957,561 - 983,957,561 Weighted average number of common shares (diluted) (shares) - 983,957,561 - 983,957,561

Diluted earnings per shares (Baht) - 0.3465 - 0.3453 On May 19, 2014, which is the last exercise date of the warrants for convert to common share. The remaining unexercised of warrants which is no longer being registered security in the stock Exchange of Thailand. Therefore, financial statements for year ended 31 December 2015 had no diluted earnings per share.

MEDIA REVOLUTIONIST

Annual Report 2015


58

33 Related party transactions

Enterprises and individuals that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the Company, including holding companies, subsidiaries and fellow subsidiaries are related parties of the Company. Associates and individuals owning, directly or indirectly, an interest in the voting power of the Company that gives them significant influence over the enterprise, key management personnel, including directors and officers of the Company and close members of the family of these individuals and companies associated with these individuals also constitute related parties. In considering each possible related party relationship, attention is directed to the substance of the relationship, and not merely the legal form. The significant investments in subsidiaries and associates are set out in Notes 12 and 13. Significant related parties transactions other than subsidiaries and associates can be summarized as follows:

Related parties Type of business Type of relation Chetchotsak Co., Ltd. Rental service Common shareholder and directors Idea Power Co., Ltd. Organizer Indirect shareholding and common directors of subsidiaries SS�C Co., Ltd. Rental service Common shareholder and directors Key management personel - Persons having authority and responsibility for planning,

directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of the Group company

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MEDIA REVOLUTIONIST

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MEDIA REVOLUTIONIST

Annual Report 2015

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MEDIA REVOLUTIONIST

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RS

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RS

Publ

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MEDIA REVOLUTIONIST

Annual Report 2015


68

34 Segment information

Consolidated For the year ended 31 December 2015

Media Music

distribution Showbiz

business Other

services

Total

Eliminated

Total Baht Baht Baht Baht Baht Baht Baht

Revenues external 2,246,138,300 374,962,586 796,019,155 311,586,345 3,728,706,386 - 3,728,706,386 internal 666,941,446 57,727,593 38,835,911 100,568,664 864,073,614 (864,073,614) - Cost of sales and services 2,349,707,827 239,144,942 567,447,388 227,824,103 3,384,124,260 (677,272,379) 2,706,851,881 Gross profit 563,371,919 193,545,237 267,407,678 184,330,906 1,208,655,740 (186,801,235) 1,021,854,505 Fixed assets 219,490,316 24,504,953 1,258 140,019,740 384,016,267 - 384,016,267 Intangible assets 2,022,670,801 60,395,859 - 42,562,790 2,125,629,450 - 2,125,629,450

Consolidated For the year ended 31 December 2014 (Restated)

Media Music

distribution Showbiz

business Other

services

Total

Eliminated

Total Baht Baht Baht Baht Baht Baht Baht

Revenues external 3,356,834,829 457,816,856 458,514,472 33,285,277 4,306,451,434 - 4,306,451,434 internal 904,702,942 61,028,822 42,662,259 73,598,788 1,081,992,811 (1,081,992,811) - Cost of sales and services 3,144,412,592 346,148,604 414,696,493 106,720,734 4,011,978,423 (1,070,904,420) 2,941,074,003 Gross profit 1,117,125,179 172,697,074 86,480,238 163,331 1,376,465,822 (11,088,391) 1,365,377,431 Fixed assets 234,244,375 15,623,557 365,760 137,996,865 388,230,557 - 388,230,557 Intangible assets 2,192,333,745 71,998,956 - 45,614,730 2,309,947,431 (28) 2,309,947,459

35 Credit facilities

As at 31 December 2015 and 2014, undrawn borrowing facilities are as follows:

Consolidated Company 2015 2014 2015 2014 Million Baht Million Baht Million Baht Million Baht

Various credit facilities - Unused 990 1,020.50 820 820.00

36 Commitments, contingent liabilities and significant agreements

36.1 Commitments

Consolidated Company 2015 2014 2015 2014 Baht Baht Baht Baht Capital Commitments Purchase assets 174,989,500 174,989,500 174,989,500 ��,��,�� Operating lease Commitments Within 1 year 59,846,390 34,550,052 59,646,390 ��,��,�� Later than 1 year but not later than 3 years 82,450,722 7,777,778 82,450,722 �,��,�� Total 142,297,112 42,327,830 142,097,112 ��,��,��


69

36 Commitments, contingent liabilities and significant agreements�(Cont’d)

36.2 Significant agreements with related parties and other entities a) Two subsidiaries entered into purchase the sport licensing agreements with two overseas federations,

resulting in the subsidiaries has the commitment to pay during the year 2010 to 2014 at the amount indicated in the agreement. This is co-guaranteed by the parent company. A commercial bank issues the bank guarantee for each installment that due for payment.

b) The subsidiary have entered an agreement with five companies whereby those companies are to provide

satellite transmission services during year 2012-2023. The Company is obligated to pay transmission service fee and other expenses as stipulated in the agreements. The Company is required to comply with conditions stipulated in the agreements.

c) The subsidiary has entered into 1 agreements to buy airtime of Radio Broadcast Station with the

government agency for the period of 2 years starting from 1 January 2016 to 31 December 2017 as stipulated in the agreements.

d) The National Broadcasting and Telecommunications Commission (NBTC) granted licenses to the Company

and two subsidiaries to operate telecommunication business. The Company and the subsidiaries are obligated to comply with certain conditions as stated in the licenses, and to pay annual license fee, together in accordance with conditions and requirements stipulated by the NBTC.

e) The subsidiary has entered into the Standard Definition Terrestrial Digital Television Network Services

agreement with Organization of Thailand Public Broadcasting Services (TPBS) for operation digital television for 15 years and had obligated to pay service fees as stipulated in the agreements. The subsidiary has submitted bank guarantee at 5% of total contract amount to the TPBS.

36.3 Contingent liabilities As at 31 December 2015 and 2014, the Group had contingent liabilities with the local banks as follows: Consolidated Company 2015 2014 2015 2014 Guarantee to the Company, its subsidiary and other companies (Baht Million) 14.9 18.35 - -

37 Significant claims and legal litigations

37.1 As at 31 December 2015 and 2014, the Company and the subsidiaries were sued, with the plaintiff demanding

the Company to pay for the damage caused by the Company’s alleged copyright violation action in the amount of Baht 102.63 million and Baht 82.82 million, respectively. This case is still being adjudicated. Then, the management has not recorded related provision.

37.2 Sponsor fee for broadcasting FIFA world cup 2014

In June 2014 the subsidiary company and National Broadcasting and Telecommunications Commission (NBTC) have agreed to whereby the subsidiary company shall broadcast all matchs of FIFA World Cup 2014 to Free TV and NBTC shall sponsor to the subsidiary company at amount of Baht 427.00 million. The subsidiary company received certain amount of Baht 369.86 million and recorded as revenue from media. Presently the subsidiary company is in process to appeal to receive sponsor fee for the remaining amount of Baht 57.14 million from the NBTC. This case is still being adjudicated in an administrative court.


69

36 Commitments, contingent liabilities and significant agreements�(Cont’d)

36.2 Significant agreements with related parties and other entities a) Two subsidiaries entered into purchase the sport licensing agreements with two overseas federations,

resulting in the subsidiaries has the commitment to pay during the year 2010 to 2014 at the amount indicated in the agreement. This is co-guaranteed by the parent company. A commercial bank issues the bank guarantee for each installment that due for payment.

b) The subsidiary have entered an agreement with five companies whereby those companies are to provide

satellite transmission services during year 2012-2023. The Company is obligated to pay transmission service fee and other expenses as stipulated in the agreements. The Company is required to comply with conditions stipulated in the agreements.

c) The subsidiary has entered into 1 agreements to buy airtime of Radio Broadcast Station with the

government agency for the period of 2 years starting from 1 January 2016 to 31 December 2017 as stipulated in the agreements.

d) The National Broadcasting and Telecommunications Commission (NBTC) granted licenses to the Company

and two subsidiaries to operate telecommunication business. The Company and the subsidiaries are obligated to comply with certain conditions as stated in the licenses, and to pay annual license fee, together in accordance with conditions and requirements stipulated by the NBTC.

e) The subsidiary has entered into the Standard Definition Terrestrial Digital Television Network Services

agreement with Organization of Thailand Public Broadcasting Services (TPBS) for operation digital television for 15 years and had obligated to pay service fees as stipulated in the agreements. The subsidiary has submitted bank guarantee at 5% of total contract amount to the TPBS.

36.3 Contingent liabilities As at 31 December 2015 and 2014, the Group had contingent liabilities with the local banks as follows: Consolidated Company 2015 2014 2015 2014 Guarantee to the Company, its subsidiary and other companies (Baht Million) 14.9 18.35 - -

37 Significant claims and legal litigations

37.1 As at 31 December 2015 and 2014, the Company and the subsidiaries were sued, with the plaintiff demanding

the Company to pay for the damage caused by the Company’s alleged copyright violation action in the amount of Baht 102.63 million and Baht 82.82 million, respectively. This case is still being adjudicated. Then, the management has not recorded related provision.

37.2 Sponsor fee for broadcasting FIFA world cup 2014

In June 2014 the subsidiary company and National Broadcasting and Telecommunications Commission (NBTC) have agreed to whereby the subsidiary company shall broadcast all matchs of FIFA World Cup 2014 to Free TV and NBTC shall sponsor to the subsidiary company at amount of Baht 427.00 million. The subsidiary company received certain amount of Baht 369.86 million and recorded as revenue from media. Presently the subsidiary company is in process to appeal to receive sponsor fee for the remaining amount of Baht 57.14 million from the NBTC. This case is still being adjudicated in an administrative court.

MEDIA REVOLUTIONIST

Annual Report 2015


70

38 Subsequent events

Treasury shares On 2 February 2018, the Company’s Board of Director No. 1/2016 passed a resolution to repurchase the Company’s paid up capital as detail as detail follows: x The maximum amount for the share repurchase are not exceeding Baht 470.00 million. x Number of repurchased shares will be not exceeding 50.70 million shares at par value of Baht 1 per share, which

is equivalent to 5.02% of the total issued shares. x Repurchasing of shares on the Stock Exchange of Thailand. x The repurchase period will be within 6 months since 25 February 2016. x In determining the repurchase price, the average market price during 30 days prior to the date on which the

Company discloses the information of shares repurchase will be used as the basis of calculation. The repurchase price must be not exceed average closing price during 5 working days prior to each trading date plus 15% of such average closing price. The average market price during 30 days during 18 December 2015 to 1 February 2016 was Baht 9.27 per share.

Dividend payment At the Board of Directors’ meeting no.2/2016 on 24 February 2016, the board of directors approved the dividend payment from the period 1 January 2015 to 31 December 2015 at Baht 0.10 per share.

Chetchotisak Building, 419/1 Ladphrao 15, Ladphrao Road,Chomphon, Chatuchak, Bangkok 10900, ThailandTel : +66 (0) 2511 0555 , Fax: +66 (0) 2511 2324

RS PUBLIC COMPANY LIMITED.

Documents

ANNUAL REPORT - listed companyrs.listedcompany.com/misc/ar/20160425-rs-ar2015-en.pdf · 2016-04-25 · In the past year, free tv industry encountered ... in impact towards the advertising