CHO THAVEE DOLLASIEN PUBLIC COMPANY LIMITED (FORMERLY CHO THAVEE DOLLASIEN CO., LTD.) AND ITS SUBSIDIARY

Transcription

1 (FORMERLY CHO THAVEE DOLLASIEN CO., LTD.) AND ITS SUBSIDIARY Interim Financial Information For the Periods Ended June 30, 2013 and Report on Review of Interim Financial Information Performed by Certified Public Accountant M.R. & ASSOCIATES CO., LTD. Certified Public Accountants

2 REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION PERFORMED BY CERTIFIED PUBLIC ACCOUNTANT To the Board of Directors of Cho Thavee Dollasien Public Company Limited (Formerly Cho Thavee Dollasien Co., Ltd.) I have reviewed the accompanying consolidated statement of financial position of Cho Thavee Dollasien Public Company Limited and its subsidiary as at June 30, 2013, the consolidated statement of comprehensive income for the three-month and six-month periods then ended, the consolidated statement of changes in shareholders equity and consolidated statement of cash flows for the six-month period then ended, and the condensed notes to the. I have also reviewed the accompanying statement of financial position of Cho Thavee Dollasien Public Company Limited as at June 30, 2013, the statement of comprehensive income for the three-month and six-month periods then ended, the statement of changes in shareholders equity and statement of cash flows for the six-month period then ended, and the condensed notes to the. Management is responsible for the preparation and presentation of this interim financial information in accordance with Thai Accounting Standard No. 34 Interim Financial Reporting. My responsibility is to express a conclusion on this interim financial information based on my review. Scope of Review I conducted my review in accordance with Thai Standard on Review Engagement No Review of Interim Financial Information Performed by the Certified Public Accountant of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Thai Standards on Auditing and consequently does not enable me to obtain assurance that I would become aware of all significant matters that might be identified in an audit. Accordingly, I do not express an audit opinion. Conclusion Based on my review, nothing has come to my attention that causes me to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with Thai Accounting Standard No. 34 Interim Financial Reporting.

3 Other The comparative consolidated and separate statements of financial position as at December 31, 2012 of Cho Thavee Dollasien Public Company Limited and its subsidiary and of Cho Thavee Dollasien Public Company Limited were audited by another auditor in my office whose report dated March 5, 2013 expressed an unmodified opinion on those statements. The comparative consolidated statement of comprehensive income for the three-month and six-month periods ended June 30, 2012, the consolidated statement of changes in shareholders equity and consolidated statement of cash flows for the six-month period ended June 30, 2012 of Cho Thavee Dollasien Public Company Limited and its subsidiary; and the comparative statement of comprehensive income for the three-month and six-month periods ended June 30, 2012, the statement of changes in shareholders equity and statement of cash flows for the six-month period ended June 30, 2012 of Cho Thavee Dollasien Public Company Limited were reviewed by another auditor in my office whose report dated August 14, 2012 stated that nothing has come to his attention that causes him to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with Thai Accounting Standard No. 34 Interim Financial Reporting. The statements of financial position as at December 31, 2012; and the statements of comprehensive income for the three-month and six-month periods ended June 30, 2012, the statement of changes in shareholders equity and statement of cash flows for the six-month period ended June 30, 2012 have been restated for the effects of accounting changes as described in Note 2. I have audited the adjustments that were applied to the restatement of the financial position as at December 31, In my opinion these adjustments are appropriate and have been properly applied. I have also reviewed the adjustments that were applied to the statements of comprehensive income for the three-month and six-month periods ended June 30, 2012, the statement of changes in shareholders equity and statement of cash flows for the six-month period ended June 30, Based on my review, nothing has come to my attention to indicate that those adjustments are not appropriate and properly applied. (Mr. Pisit Chiwaruangroch) Certified Public Accountant Registration No M.R. & ASSOCIATES CO., LTD. Bangkok August 13,

4 STATEMENTS OF FINANCIAL POSITION AS AT JUNE 30, 2013 AND DECEMBER 31, 2012 A S S E T S June 30, December 31, June 30, December 31, "Unaudited" "Audited" "Unaudited" "Audited" Note "Reviewed" "Restated" "Reviewed" "Restated" CURRENT ASSETS Cash and cash equivalents 633 7, ,837 Trade accounts receivable - Related parties 3 5,473 5,720 7,763 6,449 - Others 4 68, ,078 58, ,037 Unbilled contract work in progress 116,561 86, ,298 74,679 Short-term loans to related party ,233 40,647 Interest receivable from related party , Other receivable from related parties 3 3,158 16,553 3,746 19,265 Inventories 180, , , ,865 Other current assets 38,606 24,676 35,659 21,710 Total Current Assets 413, , , ,161 NON-CURRENT ASSETS Deposits at financial institutions under pledge 13,400 13,400 13,400 13,400 Investments in subsidiary ,600 22,600 Investment in held-to-maturity debt securities 1,000 1,000 1,000 1,000 Property, plant and equipment 338, , , ,433 Intangible assets 33,197 34,092 31,826 32,660 Deferred tax assets 2 10,017 10,211 4,642 4,616 Other non-current assets 647 1, ,643 Total Non-Current Assets 396, , , ,352 TOTAL ASSETS 809, , , ,513 The accompanying condensed notes are an integral part of these. 3

5 STATEMENTS OF FINANCIAL POSITION AS AT JUNE 30, 2013 AND DECEMBER 31, 2012 LIABILITIES AND SHAREHOLDERS' EQUITY June 30, December 31, June 30, December 31, "Unaudited" "Audited" "Unaudited" "Audited" Note "Reviewed" "Restated" "Reviewed" "Restated" CURRENT LIABILITIES Bank overdrafts and short-term loans from financial institutions 187, , , ,553 Trade accounts payable - Related parties 3 28,849 26,923 35,050 34,466 - Others 34,476 67,356 25,488 64,292 Current portion of finance lease liabilities 5,272 7,245 4,941 6,925 Current portion of long-term loans 6,858 20,349 5,934 18,246 Other payable to related parties Advances received from customers 42,989 14,257 42,989 14,257 Income tax payable 1,988 3,749 1,988 3,749 Accrued expenses and other current liabilities 24,959 36,102 21,178 22,373 Total Current Liabilities 333, , , ,881 NON-CURRENT LIABILITIES Finance lease liabilities 1,066 2, ,732 Long-term loans 4,845 5, Liability for post-employment benefits 8,604 7,398 7,928 6,781 Total non-current liabilities 14,515 15,281 8,242 8,513 Total Liabilities 347, , , ,394 SHAREHOLDERS' EQUITY Share capital Authorized share capital 5 180, , , ,000 Issued and paid-up share capital 5 180, , , ,000 Share premium 5 291, ,360 - Discount from increment of investment in subsidiary (5,633) (5,633) - - Deficit 2 (3,763) (16,055) (6,473) (17,881) Equity attributable to equity holders of the parent 461, , , ,119 Non-controlling interest Total shareholders' equity 461, , , ,119 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 809, , , ,513 The accompanying condensed notes are an integral part of these. 4

6 STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 "UNAUDITED" "REVIEWED" Note "Restated" "Restated" REVENUES Contract revenues 3 159, , , ,613 Revenue from sales and rendering of services 3 11,431 12,392 13,550 17,044 Gain (loss) on exchange rate 6,377 (157) 6,467 (169) Other income 3 2,024 4,366 4,987 5,412 Total Revenues 179, , , ,900 EXPENSES Cost of contract work 3 126, , , ,380 Cost of sales and rendering of services 3 8,847 8,759 11,097 13,451 Selling expenses 9,290 9,465 8,216 8,282 Administrative expenses 3 17,252 13,742 16,402 13,140 Finance costs 3 7,035 9,505 6,714 9,020 Total Expenses 168, , , ,273 Profit (loss) before Income Tax 10,701 2,501 10,583 (3,373) Income Tax Expense 2, 6 1, , PROFIT (LOSS) FOR THE PERIOD 8,824 1,598 8,730 (4,121) OTHER COMPREHENSIVE INCOME FOR THE PERIOD TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD 8,824 1,598 8,730 (4,121) Profit (loss)/total Comprehensive Income (loss) attributable to: Equity holders of the parent 8,824 1,597 8,730 (4,121) Non-controlling interest ,824 1,598 8,730 (4,121) Basic Earnings (Loss) per Share (Baht) attributable to equity holders of the parent (0.01) Weighted Average Number of Shares (Thousand shares) 636, , , ,000 The accompanying condensed notes are an integral part of these. 5

7 STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 "UNAUDITED" "REVIEWED" Note "Restated" "Restated" REVENUES Contract revenues 3 298, , , ,081 Revenue from sales and rendering of services 3 32,887 28,239 35,653 34,583 Gain on exchange rate 5,949 4,231 5,980 4,212 Other income 3 3,469 8,085 8,890 10,637 Total Revenues 340, , , ,513 EXPENSES Cost of contract work 3 238, , , ,334 Cost of sales and rendering of services 3 20,999 21,176 24,077 27,699 Selling expenses 14,436 16,116 12,460 13,940 Administrative expenses 3 34,447 28,910 33,187 28,120 Finance costs 3 17,216 19,332 16,372 18,527 Total Expenses 325, , , ,620 Profit before Income Tax 15,040 15,736 13,936 3,893 Income Tax Expense 2, 6 2,748 1,948 2,528 1,744 PROFIT FOR THE PERIOD 12,292 13,788 11,408 2,149 OTHER COMPREHENSIVE INCOME FOR THE PERIOD TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 12,292 13,788 11,408 2,149 Profit/Total Comprehensive Income attributable to: Equity holders of the parent 12,292 13,787 11,408 2,149 Non-controlling interest ,292 13,788 11,408 2,149 Basic Earnings per Share (Baht) attributable to equity holders of the parent Weighted Average Number of Shares (Thousand shares) 578, , , ,000 The accompanying condensed notes are an integral part of these. 6

8 STATEMENTS OF CASH FLOWS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 "UNAUDITED" "REVIEWED" "Restated" "Restated" Cash flows from operating activities Profit for the period 12,292 13,788 11,408 2,149 Adjustments for Depreciation and amortization 11,455 15,358 11,580 14,158 Expenses for post-employment benefits 1, , Interest income -247 (5,052) -2,354 (5,313) Interest expense 15,085 18,983 15,785 18,178 Decrease in allowance for slow moving inventories -97 (810) - (810) Unrealized gain on exchange rate -1,174 (1,020) -1,175 (1,039) Loss on written-off fixed assets Loss on written-off withholding tax deducted at source Income tax expense 2,748 1,948 2,528 1,744 41,307 43,590 38,921 29,418 Changes in operating assets and liabilities Trade accounts receivable 44,741 33,803 51,058 34,885 Unbilled contract work in progress -30,063 (24,731) -26,619 (15,559) Inventories 10,121 7,575 11,630 11,811 Other receivable from related parties 13,395 4,124 15,519 4,411 Other current assets -12,571 (7,789) -12,553 (6,582) Other non-current assets 1,033 (37) 1,001 (24) Trade accounts payable -31,451 24,376-38,716 19,966 Other payable to related parties 130 (617) 134 (604) Excess of progress billings over contract work in progress 28,732 4,113 28,732 3,800 Accrued expenses and other current liabilities -10,584 (211) -810 (1,261) Income tax paid -4,315 (2,671) -4,315 (2,671) Net cash provided by operating activities 50,475 81,525 63,982 77,590 Cash flows from investing activities Interest received ,407 Increase in short-term loans to related parties - (20,749) -39,586 (11,898) Addition to long term investment - (1,000) - (1,000) Proceeds from sale of fixed assets Additions to fixed assets -19,337 (49,031) -12,125 (46,328) Additions to intangible assets -881 (860) -942 (861) Net cash used in investing activities -20,117 (70,721) -52,552 (58,676) The accompanying condensed notes are an integral part of these. 7

9 STATEMENTS OF CASH FLOWS (Continued) FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 "UNAUDITED" "REVIEWED" "Restated" "Restated" Cash flows from financing activities Interest paid -15,644 (19,628) -16,170 (18,180) Increase (Decrease) in bank overdrafts and short-term loans from financial institutions -345,902 17, ,136 2,046 Increase in short-term loans from related parties ,004 Payment of long-term loans from financial institutions -13,876 (16,006) -12,312 (14,005) Payment of finance lease liabilities -3,560 (3,443) -3,402 (3,336) Proceeds from capital increase 360, ,000 - Expenses relating to capital increase -18, ,640 - Net cash used in financing activities -37,622 (21,369) -18,660 (29,471) Net decrease in cash and cash equivalents -7,264 (10,565) -7,230 (10,557) Cash and cash equivalents at beginning of periods 7,897 12,113 7,837 12,059 Cash and cash equivalents at end of periods 633 1, ,502 The accompanying condensed notes are an integral part of these. 8

10 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 "UNAUDITED" "REVIEWED" - Restated Discount from Equity Issued and increment of attributable to Non- Total paid-up investment equity holder of controlling shareholders' Note share capital Share premium in subsidiary Deficit the parent interest equity Balance as at January 1, as previously reported 130,000 - (5,633) (46,591) 77, ,777 Adjustment ,088 9, ,089 Balance as at January 1, as restated 130,000 - (5,633) (37,503) 86, ,866 Total comprehensive income for the period ,787 13, ,788 Balance at June 30, ,000 - (5,633) (23,716) 100, ,654 Balance as at January 1, as previously reported 130,000 - (5,633) (26,265) 98, ,103 Adjustment ,210 10, ,211 Balance as at January 1, as restated 130,000 - (5,633) (16,055) 108, ,314 Proceeds from shares issued 5 50, , , ,360 Total comprehensive income for the period ,292 12,292-12,292 Balance at June 30, , ,360 (5,633) (3,763) 461, ,966 The accompanying condensed notes are an integral part of these. 7

11 (FORMERLY CHO THAVEE DOLLASIEN CO., LTD.) STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2013 AND 2012 "UNAUDITED" "REVIEWED" - Restated Issued and paid-up Shareholders' Note share capital Share premium Deficit equity Balance as at January 1, as previously reported 130,000 - (36,237) 93,763 Adjustment ,439 3,439 Balance as at January 1, as restated 130,000 - (32,798) 97,202 Total comprehensive income for the period - - 2,149 2,149 Balance at June 30, ,000 - (30,649) 99,351 Balance as at January 1, as previously reported 130,000 - (22,497) 107,503 Adjustment ,616 4,616 Balance as at January 1, as restated 130,000 - (17,881) 112,119 Proceeds from shares issued 5 50, , ,360 Total comprehensive income for the period ,408 11,408 Balance at June 30, , ,360 (6,473) 464,887 The accompanying condensed notes are an integral part of these. 8

12 Condensed notes to the June 30, 2013 and 2012 (Unaudited/Reviewed) December 31, 2012 (Audited) 1. GENERAL Cho Thavee Dollasien Public Company Limited, the Company, is incorporated in Thailand. The Company registered the legal transformation of juristic person from being limited company under the Civil and Commercial Code to limited public company under the Limited Public Company Act B.E with the Ministry of Commerce on January 2, The Company is engaged in the business of manufacturing, selling and providing service of trailer assembly and special vehicles and equipment. The registered offices are as follows: Head office Branch 1 Branch 2 Branch 3 : 265 Moo 4, Klang Muang Road, Tambol Muang Khao, Amphur Muang, Khon Kaen : 96/25 Moo 3, Vibhavadi Rangsit Road, Talat Bang Khen, Laksi, Bangkok : 66/5 Moo 2, Tambol Pong, Amphur Bang Lamung, Chonburi : 62 Moo 2, Tambol Lam Sai, Amphur Wang Noi, Phra Nakhon Si Ayutthaya 2. BASIS FOR PREPARATION OF INTERIM FINANCIAL INFORMATION The interim financial information are prepared on a condensed basis in accordance with Thai Accounting Standard No.34 Interim Financial Reporting including related interpretations and guidelines promulgated by the Federation of Accounting Professions, and applicable rules and regulations of the Securities and Exchange Commission. The interim financial information is prepared to provide an update on the for the year ended December 31, They focus on new activities, events and circumstances to avoid repetition of information previously reported. Accordingly, these interim financial information should be read in conjunction with the for the year ended December 31, The consolidated interim financial information comprises the interim financial information of the Company and its subsidiary (together referred to as the Group ). The subsidiary is Cho Thavee Thermo Tech Co., Ltd. (registered in Thailand), which is 99.99% owned. Significant intra-group transactions between the Company and its subsidiary are eliminated on consolidation. Accounting policies and methods of computation applied in the interim financial information for the threemonth and six-month periods ended June 30, 2013 and 2012 are consistent with those applied in the for the year ended December 31, 2012, except for accounting policies as described in the following paragraphs. The Federation of Accounting Professions has issued new and revised Thai Accounting Standards (TAS) and Thai Financial Reporting Standards (TFRS) relevant to the Company s operations as follows: TAS 12 TAS 21 (Revised 2009) TFRS 8 Income tax The Effects of Changes in Foreign Exchange Rates Operating Segments The Company adopts these new TAS and TFRS for the fiscal year starting from January 1, The adoption of TAS 21 (Revised 2009) and TFRS 8 does not have significantly impact on the Company s financial information. The adoption of TAS 12 impacts the Company s financial information as follows: 11

13 Condensed notes to the (Continued) June 30, 2013 and 2012 (Unaudited/Reviewed) December 31, 2012 (Audited) TAS 12 Income tax Under this TAS, deferred tax in respect of temporary difference between the carrying amounts of assets and liabilities for financial reporting and the amounts used for tax purposes is deferred. Increase (Decrease) As at June 30, 2013 and December 31, 2012 Deferred tax assets 10,017 10,211 4,642 4,616 Deficit (10,016) (10,210) (4,642) (4,616) Non-controlling interest As at January 1, Deficit (10,210) (9,088) (4,616) (3,439) Non-controlling interest For the three-month periods ended June 30, Income tax expense Profit for the period (525) (361) (503) (206) For the six-month periods ended June 30, Income tax expense (26) 265 Profit for the period (193) (469) 26 (265) For convenience of the readers, an English translation of the financial information has been prepared from the Thai language statutory financial information that is issued for domestic financial reporting purposes. 3. RELATED PARTY TRANSACTIONS AND BALANCES Significant transactions for the three-month periods ended June 30, 2013 and 2012 with related parties were as follows: Subsidiary Revenue from sale and rendering of services - - 2,134 4,721 Management fee income Rental income Interest income - - 1, Other income Purchase of materials - - 5,794 19,783 Rental expense Interest expense

14 Condensed notes to the (Continued) June 30, 2013 and 2012 (Unaudited/Reviewed) December 31, 2012 (Audited) Related parties Contract revenues Revenue from sale and rendering of services 5, , Management fee income 1,177 1,177 1,177 1,177 Rental income Interest income - 2,537-2,422 Other income Purchase of materials 27,139 23,666 27,139 23,666 Rental expense Other expense Remuneration of key management - Short-term employee benefits 2,576 2,060 2,576 2,060 - Past-employment benefits Total 2,711 2,100 2,711 2,100 Significant transactions for the six-month periods ended June 30, 2013 and 2012 with related parties were as follows: Subsidiary Revenue from sale and rendering of services - - 3,050 6,568 Management fee income - - 1,283 1,180 Rental income - - 1, Interest income - - 2, Other income Purchase of materials ,878 38,712 Rental expense Interest expense

15 Condensed notes to the (Continued) June 30, 2013 and 2012 (Unaudited/Reviewed) December 31, 2012 (Audited) Related parties Contract revenues - 1,404-1,404 Revenue from sale and rendering of services 5, , Management fee income 2,354 2,354 2,354 2,354 Rental income Interest income - 4,827-4,597 Other income Purchase of materials 49,914 34,674 49,914 34,674 Purchase of fixed assets - 1,500-1,500 Rental expense Other expense Remuneration of key management - Short-term employee benefits 5,022 4,120 5,022 4,120 - Past-employment benefits Total 5,292 4,200 5,292 4,200 Balances as at June 30, 2013 and December 31, 2012 with related parties were as follows: June 30, December 31, June 30, December 31, Trade accounts receivable Subsidiary - - 2, Related parties Khon Kaen Cho Thavee (1993) Co., Ltd. 5,394-5,394 - Ruamthavee Khonkaen Co., Ltd. 2 5, ,719 Others Total 5,473 5,720 7,763 6,449 14

16 Condensed notes to the (Continued) June 30, 2013 and 2012 (Unaudited/Reviewed) December 31, 2012 (Audited) The trade accounts receivable are aged as follows: June 30, December 31, June 30, December 31, Current 5,397-6, Overdue: - Not over 3 months 76 5,720 1,202 5,806 Total 5,473 5,720 7,763 6,449 June 30, December 31, June 30, December 31, Short-term loans to subsidiary ,233 40,647 Movements during the six-month periods ended June 30, 2013 and 2012 of short-term loans to related parties were as follows: Balance as at January 1-123,195 40, ,432 Increase - 154, , ,852 Decrease - (134,196) (71,991) (211,954) Balance as at June ,944 80, ,330 June 30, December 31, June 30, December 31, Interest receivable from subsidiary - - 2,

17 Condensed notes to the (Continued) June 30, 2013 and 2012 (Unaudited/Reviewed) December 31, 2012 (Audited) June 30, December 31, June 30, December 31, Other receivables Subsidiary ,712 Related parties Khon Kaen Cho Thavee (1993) Co., Ltd. 2, , Volrep Truck and Bus Co., Ltd , ,142 Others Total 3,158 16,553 3,746 19,265 June 30, December 31, June 30, December 31, Trade accounts payable Subsidiary - - 6,201 7,543 Related parties Doll Fahrzeugbau AG 26,600 26,472 26,600 26,472 Others 2, , Total 28,849 26,923 35,050 34,466 June 30, December 31, June 30, December 31, Other payables Subsidiary Related party Khon Kaen Cho Thavee (1993) Co., Ltd Total

18 Condensed notes to the (Continued) June 30, 2013 and 2012 (Unaudited/Reviewed) December 31, 2012 (Audited) 4. TRADE ACCOUNTS RECEIVABLE OTHERS As at June 30, 2013 and December 31, 2012, the Group had outstanding balance of trade accounts receivable - others, aged as follows: June 30, December 31, June 30, December 31, Current 52,033 81,114 47,786 80,589 Overdue: - Not over 3 months 12,804 20,699 7,217 19,289 - Over 3 months to 6 months 1, , Over 6 months to 12 months 307 1, ,256 - Over 12 months 3,481 11,237 3,481 11,237 Total 70, ,515 60, ,474 Less allowance for doubtful accounts (2,437) (2,437) (2,437) (2,437) Net 68, ,078 58, , SHARE CAPITAL At the extraordinary meeting held on December 24, 2012, the shareholders of the Company passed the special resolution to increase authorized share capital from Baht 130,000,000 (1,300,000 shares at Baht 100 par value) to Baht 180,000,000 (720,000,000 shares at Baht 0.25 par value). The capital increase was registered with the Ministry of Commerce on January 2, Accordingly, the number of paid-up share capital has been changed from 1,300,000 shares to 520,000,000 shares. At the extraordinary shareholders meeting held on December 24, 2012, the shareholders approved the resolution to list the Company s securities on MAI in order to support the Company s expansion in the future. On January 15, 2013, the Company submitted a registration statement to the Office of Securities Exchange Commission of Thailand for offering 200,000,000 ordinary shares at Baht 1.80 par value to the public. The Company was allowed to offer its securities to the public on April 26, 2013 and the Stock Exchange of Thailand in the Market for Alternative Investment (MAI) issued an order accepting the ordinary shares of the Company as registered securities on May 13, In May 2013, the Company offered the newly issued 200,000,000 ordinary shares to the public. As a result, the Company received the proceeds of Baht 360 million which was separately recorded as its share capital of Baht 50 million and share premium of approximately Baht million (net of related expenses incurred for the offering of ordinary shares of approximately Baht million) under the Shareholders equity in the statement of financial position as at June 30, The Company registered the increase in paid-up share capital with the Ministry of Commerce on May 9,

19 Condensed notes to the (Continued) June 30, 2013 and 2012 (Unaudited/Reviewed) December 31, 2012 (Audited) 6. INCOME TAX The Company used income tax rate of 20% for the calculation of corporate income tax for the three-month and six-month periods ended June 30, 2013 and used income tax rate of 23% for the calculation of corporate income tax for the three-month and six-month periods ended June 30, 2012 attributable to the Section 5 of the Royal Decree Issued Under the Revenue Code Regarding Deduction in Tax Rate (No. 530) B.E GROUP S SEGMENT INFORMATION Revenue from Contract Revenue rendering revenues from sales of services Total Six-month period ended June 30, 2013 Revenues 298,108 3,601 29, ,995 Gross margin 59, ,034 71,721 Unallocated selling and administrative expenses and finance costs (66,099) Unallocated other income 3,469 Unallocated gain on exchange rate 5,949 Unallocated income tax expense (2,748) Profit before non controlling interests 12,292 Six-month period ended June 30, 2012 Revenues 302,992 5,742 22, ,231 Gross margin 60,715 2,899 4,164 67,778 Unallocated selling and administrative expenses and finance costs (64,358) Unallocated other income 8,085 Unallocated gain on exchange rate 4,231 Unallocated income tax expense (1,948) Profit before non controlling interests 13,788 The Group does not allocated it s assets by business segment. The Group s revenues from major customers during the six-month periods ended June 30, 2013 and 2012 amounted to Baht million and Baht million, respectively. 18

20 Condensed notes to the (Continued) June 30, 2013 and 2012 (Unaudited/Reviewed) December 31, 2012 (Audited) The Group s segment revenues based on the geographic location of customers for the six-month periods ended June 30, 2013 and 2012 were as follows: Thailand 150, ,847 The United Arab Emirates 79,251 98,859 Others 101,160 72,525 Total 330, , COMMITMENTS AND OTHERS As at June 30, 2013, the Group had: a) commitments for rental of land and building, vehicle and others with local companies and third party amounting to Baht 6.5 million, and b) unused letters of credit totaling Euro 0.6 million (equivalent to Baht 23.4 million), and c) outstanding balance of forward purchase contracts of U.S. Dollars 0.2 million (equivalent to Baht 5.4 million) and Euro 0.05 million (equivalent to Baht 1.8 million) and forward sale contracts of Euro 0.6 million (equivalent to Baht 22.5 million). The above contracts mature in December 2013, and d) letters of guarantee issued by local banks to various private companies, government agencies and state enterprises amounting to approximately Baht 25.0 million and U.S. Dollars 0.6 million (equivalent to Baht 18.7 million). 9. APPROVAL OF INTERIM FINANCIAL INFORMATION These interim financial information have been approved for dissemination by the Company s directors on August 13,