Csl 10

Annual Report 2010

Green IT and The cloud computing

Certainstatementsinthisreportareforward-looking;thesestatements

include,withoutlimitation,expectedgrowthinrevenue,EBITDA,earningsper

share,potentialrisks,marketenvironment,marketpositioning,strategiesand

targets.

Althoughwebelievethattheexpectationsreflectedintheseforward-

lookingstatementsarereasonable,wecangivenoassurancethatthese

expectationswillprovetobecorrect.Thisisduetotherisksanduncertainties

involved,inwhichconsequentlytheactualresultsmaydiffermateriallyfrom

thoseexpressedorimplied.

CautionaryStatement

Cloud computer technologyfulfills our unlimited needs.

mOverviewZ Financial Highlights & Dividend PaymentZ Vision & MissionZ Internet Business DirectionZ YellowPages Business Direction/Mobile Content Business Direction Z Summary of Business OverviewZMessage from Chairman Z Audit Committee Report

Intro-duction

1. Summary of the Company Overview: Thissectioncontainsasummaryofthefinancialresults,businessdescriptionanddirectionaswellassynopsisofotherimportancematters.

2. Importance Information of the Company: ThissectioncontainsdetailedinformationofbusinessdescriptionoftheCompanyanditssubsidiaries,includinginformationaboutpotentialand/oropportunitiesinbusinessexpansion,corporategovernance,organizationstructure,compositionofandgoodgovernancestructure,rolesandresponsibilitiesofdirectorsandkeyexecutives,riskmanagementandvariousmanagementaspects.Moreover, itconsistsofdetailedonshareholdingstructureoftheGroupandmajorshareholdersaswellasbriefbiographiesofdirectorsandmanagement.

3. Financial Reports: ThissectionreportsthefinancialstatusoftheCompanyin2010,whichwasapprovedbytheauditor.Thefinancialstatementsconsistofdetailedaccountingstandarde.g.connectedtransactions,statementofdirectors’responsibilitiesinrespectofthefinancialreports.

4. General Information for Investors: Thissectioncontainsgeneralinformationforinvestors’referencei.e.detailedinformationthatshareholders, investorsandpublicmayneedtoknowe.g. registrar,auditorandshareregistrationontheStockExchangeofThailand.

IntroductionWelcome everyone to 2010 Annual Report of CS LoxInfo Public Company LimitedOur Annual Report is divided into 4 major sections as follow:

Green ITand

the Cloudcomputing

11

69page

page

Overview 6 FinancialHighlights&DividendPayment 7 Vision&Mission 8 InternetBusinessDirection 9 YellowPagesBusinessDirection/MobileContent BusinessDirection 10 SummaryofBusinessOverview 13 MessagefromChairman 14 AuditCommitteeReport

Company Insight 17 BusinessOverviewandRevenueStructureRatio 31 RiskFactors 34 SocialContributions 44 MajorDevelopments 46 GeneralInformationoftheCompanyandSubsidiaries 49 MajorShareholders 50 InvestmentStructureofShinGroup 52 CorporateGovernance Directors and Management Team 72 DirectorsandManagementTeam 81 Directors’ShareholdingintheCompany anditsSubsidiariesoftheYear2010

Financial Report 84 RelatedPartyTransactions 89 Management’sDiscussionandAnalysis 96 BoardofDirectors’ResponsibilityforFinancialReporting 97 Auditor’sReport

Financial Statements 98 FinancialStatements107 NotestotheFinancialStatements150 DividendPolicyandAnnualAuditFeefor2010

General Information for Investor151 GeneralInformationonReferencePersons/ InvestorInformation

Content

The Company’s dividend payments during the past three years are as follows:

2010

2009

2008

Payout Ratio (%)

2010

2009

2008

Total of dividend payment (Million Baht)

2010

2009

2008

Dividend per share (Baht)

2010

2009

2008

Closing Stock Price at end of year (Baht/share)

20102008

2009

90%109%

99%

20102008

2009

295.83

415.95

240.29

20102008

2009

0.500.72

0.41

20102008

20095.30

2.10

3.10

* Note: CSL paid special dividend Baht 0.27 per share in 2008 due to an extraordinary gain from liquidation of a subsidiary

Financial Highlights &

Dividend Payment

(Million Baht)

(Million Baht)

EBITDA Net Profit

Total Revenue Gross Margin

0

100

200

300

400

500

600

700

0

500

1,000

1,500

2,000

2,500

3,000

2010

2,701

691

400

287

161

566

505

1,237 1,128 1,101

2,614 2,664

2009 2008

2010 2009 2008

Financial Highlights

06 CS LoxInfo Public Company Limited Annual Report 2010

Vision and Mission

Sustainability of the global business

and societyIs the sustainability

of our business

Business socialand environment

sustainability

To develop new products and services To be more relevant to our customers

To improve existing products and

services to be better for our customers

07CS LoxInfo Public Company Limited Annual Report 2010

Mobile Content Business Direction Content Owners

• To aggregate and self develop the right content choices for users• To continue develop new products to serve mass consumer as well as smart phone users

YellowPages Business Direction

• To provide a platform (Print, Web, PC, Mobile, Laptop) user (Business and Individual) to served or load for produce or serves• To provide advertising with effective choices of media to reach target customer

TMC Business Information/Database

Mass YellowPages

Call Center 1188

Target/Focus Website

Mobile Phone

Computer

Telephone

Users

Entertainment Content Owner

BusinessConsumerAdvertising

SHINEE

Internet Business DirectionInternet Business DirectionTo provide our corporate customer with solutions for brand range of internet based services

Manage Network

Manage System

Manage Security

Manage IP

Vertual Computer

IT Solutions

E-mail

VPN

VOIP

CCTV

DomesticInternet

InternationalInternet

Internet Connection

Internet Data CenterIT Solutions

Office and BranchCorporate Customer

Total Thailand Business


Mobile Content Business Direction Content Owners

• To aggregate and self develop the right content choices for users• To continue develop new products to serve mass consumer as well as smart phone users

YellowPages Business Direction

• To provide a platform (Print, Web, PC, Mobile, Laptop) user (Business and Individual) to served or load for produce or serves• To provide advertising with effective choices of media to reach target customer

TMC Business Information/Database

Mass YellowPages

Call Center 1188

Target/Focus Website

Mobile Phone

Computer

Telephone

Users

Entertainment Content Owner

BusinessConsumerAdvertising

SHINEE

Internet Business DirectionInternet Business DirectionTo provide our corporate customer with solutions for brand range of internet based services

Manage Network

Manage System

Manage Security

Manage IP

Vertual Computer

IT Solutions

E-mail

VPN

VOIP

CCTV

DomesticInternet

InternationalInternet

Internet Connection

Internet Data CenterIT Solutions

Office and BranchCorporate Customer

Total Thailand Business


Summary of Business OverviewCS Loxinfo Public Company LimitedCSLoxinfoPublicCompanyLimitedhas4businesssegmentsasfollow:-

1) The Internet Services business: Brand:CSLOXINFO Logo:

Website:www.csloxinfo.com Positioning:HighQuality Target segment:Corporate Main Product:CorporateInternetServices,IDCandITSolutions Product offerings:Corporateinternetleasedline,ManagedInternetAccessServices,InternetDataCenter service,corporateemailservices,corporatecommunications,ITsecuritiesandITsolutionsservices

Long Term Direction:CorporateICTservicesandcloudcomputingservices Weoperateinternetservicebusinessusingthebrand“CSLOXINFO”focusingthecorporateorbusinesssegment.

WepositionourselfasthehighqualityInternetServiceProvider.Ourcustomersarelargeandmediumsizecorporate.

Weprovideourinternetservicenationwide,servingourcustomerswithconventionalsimplededicateinternetconnection

aswellassophisticated,managedandorcomplexservices.

Inadditiontotheinternetconnectionservices,wealsoofferingvalueaddedandorsolutionservicestoour

customerssuchasCorporateEmailservices(includingvirusscanandspamfiltering),Securitysolutions,UserAccess

Loggingservices,CommunicationServices(VOIP,WebConference,VPNandCCTVetc.)aswellasnetworkhardware

andcomputerhardwaresolutionsandservices.

OurInternetDataCenterservices(IDC)arehighstandardcomputerroomfacilitiesthathelpcorporatecustomers

tosavecostbyhostingorleasingthecomputersinourfacilities.

Wehaveourengineeringteamtomakerecommendation,helpfixingthecustomerproblemandmonitor

customerservices24hoursforbothinternetaccessservicesaswellasinternetdatacenterservices.Wealsoprovide

24x7callcenterservicestoservecorporatecustomers.


Main business Business Entity Revenue

Contribution

Profit

Contribution

% Shareholding

1. Internet services CS Loxinfo Plc. 57 26 Parent

2. YellowPages Advertising Teleinfo Media Plc. 20 13 100

3. Mobile Phone Contents Services AD Venture Plc. 15 58 100

4. Print Classifieds Advertising Watta Classifieds Ltd. 7 1 60

5. นายหรรษา ชีวะพฤกษ์ ผู้อำานวยการอาวุโสฝ่ายเทคนิค และงาน

ปฏิบัติการ

xxxx

2) YellowPages Directories Advertising Business: Brand:ThailandYellowPages Logo:

Website:www.yellowpages.co.th Positioning:No.1Directory Target segment:MediumSizeBusiness Main product:ThailandYellowPages Product offering:ThailandYellowPages,HomeYellowPages,RegionalYellowPages,CityYellowPagesetc., 1188callcenterandwww.yellowpages.co.th

Long Term Direction:Integratedmediaacrossonline,printandmobileadvertising,searchandecommerce TeleinfoMediaPublicCompanyLimited(TMC)isthemarketleaderinPrintedDirectoryAdvertising.TMCdeliver

morethan2millionYellowPagesbookalloverThailand.TheNo.1positioningisendorsedbythelargedistribution

coveragewithmorethan600,000businesslistingcoverover3,000categories.Ourtargetadvertisersaremediumsize

businesssegment.

TMCoffersmanychoicesofPrintedDirectorytoservevariousneedsofcustomersrangingfromlargecoverage

book“ThailandYellowPages”,Regionalbooksfor5regionsinThailand,“CityYellowPages”orProvincialbooksfor

majorprovinces.TMCcontinuetoimprovetheprinteddirectoryoffering,withnewproductornewdesign,tocapture

morespecificsegmentsintheadvertisingmarket.

Inordertoaddmorevaluetobothusersandadvertisers,TMCalsoprovideservicesofdirectorysearching

through1188callcenter,www.yellowpages.co.thandalsoWAPsiteonmobile.Theintegrationofprint,telephone

serviceandinternetiscalled“FlipCallClick”services.


3) Contents Service Provider Business: Brand:“SHINEE”and“ADVenture” Logo:

Website: www.shinee.com Positioning:Marketleader Target segment:MobileTelephoneConsumerusers ShineeDotcomCompanyLimited(SHINEE)isthemarketleaderinContentsServiceProviderBusiness.SHINEEoffer

completeandlargevarietychoicesofcontentsformobiletelephoneusersviadirectdownloadormonthly

subscriptionservicesaswellasfixedtelephoneusersviadedicatephonenumbersforaudiotextvoiceservice.

Product offering:News,MusicandRingtone,VDOGallery,GraphicTheme,JavaGameandHoroscope services

SHINEEhaslongexperienceincontentsserviceproviderinThailand.ThereforeShineehasgoodrelationshipswith

manycontentprovidersbothinThailandandaboard.SHINEEofferslargevarietychoicesofcontentssuchas:

•MusicandRingtonefromvariousMusichouses

•ThemeorallPaperorScreensaverfromlocalandinternational

•Game(i.e.FootBall,Tennis,CarRacing,etc.)

•NewsandMagazineupdate

•Horoscopeservices

Content Service Provider Business: Market environment and competition ContentServiceProviderbusinessishighlycompetitive.Thecontentownerssuchasmusichousesandnews

channelalsoofferdirectservicetotheconsumers.Inordertomaintainawarenesstothecustomers,thisbusiness

requiremassadvertisingspending.WithlongexperienceinthismarketShineehascompetitiveedgeoverawareness

toitstargetgroup.Shineealsoabletoattractmorecontentsfromvarioussourcesthereforewithitsrichnessofcontent,

shineeisabletosustaininthisbusiness.

4) Printed Classified Magazines: CSLOXINFOhold60%shareinprintedclassifiedmagazinebusinessnamelyWattaClassifiedCompanyLimited

(“WATTA”).Thecompanyofferweeklyclassifiedsmagazinesfocusingtopsellingsegments:Auto,Jobs,Homes.WATTA

isno1.marketleaderinthesesegmentsofwhichadvertisersaresmalltomediumsizebusiness.Duringthisyear2009,

theadvertisingmarketisdeclining,duetoweakeconomicenvironment,causingthedropinadvertisingsales.

However,WATTAareabletomanageitscostsothatitcanmaintainpositivenetresult.



Dear Shareholders,

Onbehalfoftheboardmembers,managementteamandstaff,wewouldliketothankourshareholdersforthesupportandtrustgiventous.Inthefiscalyear2010,wehaveagainachievedgoodresults.OurearningpershareimprovedfromBaht0.40toBaht0.50.ThiswasduetoimprovedperformancesofSHINEE(MobileContentService)andCSLOXINFO(InternetSector).Wewereabletomanageourbusinesseffectivelythroughouttheyear,thoughinthefirsthalfof2010,therewerepoliticalandcivilunrestincidentscausingshorttermimpacttooverallbusinessinThailandandespeciallyinBangkok.PhysicalimpactwayminimalduetotimelyrelocationofourofficefromRajprasongareatoCyberworldatRatchadapisekRoad.Duringtheunrestincident,theCompanyhelpedanumberofbusinesscustomerswhichwereaffectedbyprovidingtheemergencyofficeservice;consistcompletesolutionsoftelephonesystem,computerandinternet.

We would like to highlight some key developments in 2010 and strategies to go into 2011 as follows: Forinternetbusiness,wewereabletomaintainstablegrowthofinternetservicesinthebusinesssegment,ourmainmarket.Inadditiontobasicinternetserviceswehavenowexpanded,accordingtothechangingneedsofcustomers,tomorecomplicatedcomputernetworkandsystemsolutions.OurIDCarenowequippedwithnewservicesofvirtualcomputersandcloudcomputing.Wealsobuildanemergencyofficewithcomputersystem,internetandtelephonetosupportcustomerinemergencysituation.Tomoveforward,wewillcontinuetoimproveourproductsandservicesintheareaofInternet,CommunicationsandComputer. Formobilecontentbusiness,wewereabletoimproveoursalesthroughsubscriptionserviceswithdynamicandcontinuoussourcingofentertainmentcontenttoserveandsatisfyourconsumersegment.Tomoveforward,wehaveinvestedmoreoncustomerneedsanalysistodevelopproductstomatchdynamicrequirementinparallelwithcontinuousimprovementofmarketingandsaleschanneltoattractmorecustomers. ForYellowPagesBusiness,itsrevenuedecreasedbecausetheproductbecameoutofdate.Therefore,wehaverationalizedtheorganizationandrestructuredthemanagementteaminparalleltomodernizingYellowPagesbusinesstorespondtocustomers’andadvertisers’behaviorsandneeds.Wefirmlybelievethatin2011wecandevelopYellowPages“NewLook”whichwillbemoreappealingtousersandprovemoreeffectiveforadvertisers. Ourboardmembers,managementteamandmembersofstaffareworkinghardtoensurethatallbusinessunitsareefficiencymanagedwithgoodgovernancetoserveallstakeholdersaswellassocietyasawhole.

(Professor Wongkulpat Snidvongs na Ayudyha) Chairman of the Board of Directors

(Mr. Arak Chonlatanon)Chairman of the Executive Committee

Professor Wongkulpat Snidvongs na AyudyhaChairman of the Board of Directors

Mr. Arak ChonlatanonChairman of the Executive Committee

Message from Chairman of the Board of Directors and Chairman of the Executive Committee


In 2010, the Audit Committee (AC) membersremainedunchanged.ItwascomposedofMr.PrathuengSrirodbangasChairmanandMr.GanHuiBeng,andDr. Sillapaporn Srijunpetch as ACmembers.Betweenthemembers,theAChasexpertiseinlegal,financialmanagement, and accounting and auditing fieldrespectively.Themembershavebeeninpositionfor7,7,and5yearsrespectively. All threeACmembersarenotdirectors in theparentcompanies,subsidiaries,affiliates,orsamelevelsubsidiariesoftheCompany.TheACpossessqualificationsasprescribedbyexistinglawsandregulations.TheACmembers own no shares in the Company; take nopartinthemanagementoftheCompanyandarenotinvolvedasauditors,consultants,businesspartners,oranyotherengagementwiththeCompanyoritsrelatedcompanies,whichareincompliancewithexistinglawsand regulations. Inparticular, theACmembershavenotacceptedappointmenttoprotectonlytheinterestsofdirectorsormajorshareholders. In2010,theACmet5times.Ineachmeeting,senior management, internal auditors, and externalauditorsalsoattendedtoassistandenabletheACtocarryoutitsroles,dutiesandresponsibilitiesundertheACCharteraswellastoaddressmattersspecificallyassignedbytheBoard.Thefollowingisasummaryofsignificantmattersaddressedduringtheyear.

1. Accuracy, completeness and credibility of the Financial Statements.TheACreviewedtheQuarterlyandYearEndfinancialstatementsoftheCompany,bothonastandaloneandconsolidatedbasis,togetherwiththeauditorsandmanagementforintegrityandproprietypriortoproposingthemtotheBoard for approval. The review focused onmaterialaccounts,changes,adjustments,provisions,estimatesaswellassignificantinformationdisclosurestoensurethattheywereproperlystated,clear,adequate,timelyandmeaningfulfortheshareholdersandotherusersofthepublishedfinancialstatements. Fromthereviewsconducted,theACwasoftheopinionthatthefinancialstatementsreportedtotheSETandthepublicin2010werecomplete,accurate,and

A u d i t C o m m i t t e e R e p o r tcredible,andincompliancewithgenerallyacceptedaccountingprinciplesofThailand, During2010,theCompanyismadethenecessarypreparationsforIFRSadoptioncomingintoeffectin2011.

2. Internal Control of the Company.TheACreviewedtheadequacyofinternalcontroloftheCompanyona regularbasis fromthe reportsofbothinternalandexternalauditors.TheACwouldbringmajoritemsofconcerntotheattentionoftheBoardtogether with the remedial action to be taken. ThisapproachencouragedmanagementoftheCompanytoensureadequateandeffective internal control inachievingbusinessfocus,operationsefficiency,effectiverisk management, safeguard of assets, and peoplemanagement. During2010,asmallnumberofemployeerelatedfraudulentacts involvingupondiscoverythewrongfuldiversionofcashwereuncovered.Fraudcaseswerepromptly investigated and the appropriate remedialactiontakentofurtherstrengthentheinternalcontrolprocessandprotecttheassetsoftheCompany.Theoverall financial impact of the fraudulent acts wasimmaterial to the financialpositionof theCompany.BoththeACandBoardwereinformedonatimelybasis. Overall, the AC was of the opinion that theCompany had adequate internal and managementcontrol.

3. Compliance with the SEC and SET laws and regulation and other laws relevant to the Company’s business. TheCompanyhasaLegal&ComplianceUnitthatmonitors,analyses and reports changes in laws, rules andregulationsrelevanttotheCompany,aswellasensurescompliance.TheAC,initsreviews,alsomonitoredtoensuretheCompanywasincompliancewithrelevantlawsand regulationsof theSECandSET,aswellasother laws relevant to thebusinessof theCompany.TheACwasoftheopinionthattheCompanywasincompliancewiththerelevantlaws,rules,andregulationsapplicabletotheCompany.


4. Suitability of the external auditor.TheACmonitoredthesuitabilityoftheexternalauditorby reference to the audit work quality, audit teamcompetenceandauditorindependenceinthequarterlyfinancialstatementsreviewandinprivatediscussioninwhichindependentfeedbackontheauditresultandinternalcontrolenvironmentwasobtained.In2010,theACmet independentlywith theexternalauditorandhisauditteam1time.Nomaterialfinancialreportingissueswereraised.Overall,theACwasoftheopinionthattheauditorhadperformedsuitablyin2010. InthemeetingtorecommendauditorandtheauditfeetotheBoard,theACtookintoaccountthescopeofauditworkandotherservice(ifapplicable).For2010,theACrecommendedtheretentionofKPMGPhoomchai Audit Ltd. (KPMG) as the auditor of theCompanyforthe3rdyearatafeeofBaht1.65millionunchangedfromyear2009.TheKPMGscopeofworkandfeequotedtotheCompanydidnotincludeanynon-auditservice.

5. Transactions which may cause conflicts of interest.TheCompanyhasapolicyonconflictofinterestandrelatedpartytransactionsthatisincompliancewithexistinglawsandregulations,andclearlycommunicatedcompanywide.Aspermittedby law,alimitedauthoritytosanctionconnectedtransactionshasbeendelegatedtotheManagingDirectoroftheCompany.ConnectedtransactionsabovethedelegatedauthoritylevelarepresentedtotheBoardforapprovalbeforehand.Allconnected transactionsare identifiedandsubmittedquarterlytotheACforreview.TheACwasoftheopinionthatconnectedtransactionsin2010wereinlinewiththebusinessoftheCompany,onarm’slengthbasis,andundernormalcommercialterms.

6. Risk Management. The AC reviewedthequarterlymeetingresultsoftheRiskManagementCommitteesoftheCompanyanditssubsidiary,payingparticularattention to risk factors identifiedandtheirtreatment or mitigation, and provided constructivesuggestions of ways identified risks could be moreeffectivelymanaged.TheACwasoftheopinionthat

theCompanyhadmanagedrisksidentifiedin2010inaprudentway.

7. Overseeing Company Internal Audit Function.TheOfficeofInternalAuditoftheCompanyreportsdirectlytotheAConafunctionalbasis.In2010,the AC reviewed and approved the internal auditannualworkplancoveringboththeCompanyanditssubsidiaries. In the review, theACtook intoaccountsufficiencyofheadcount,effectivenessoftheunderlyinginternal audit risk evaluation, its independence, andprovidedconstructivesuggestionsonimprovements.

8. Self-assessment of the AC. TheACperformedanassessmentofitsactualworkcoveredin2010byreferencetotheACCharterandestablishedbestpractices.Theresultsshowedthat,onapragmaticbasis,thescopeofworkcoveredbytheACin2010wasinlinewithboththeACCharterandestablishedgoodpractices. Inconclusion,in2010,theACwasoftheopinionthatithadfulfilledtheACCharter.TheACreviewedtheperformanceoftheCompanyanditssubsidiariesintheareasofbusinessoperations,corporategovernance,financial reporting, internal control, riskmanagement,legal and regulatory compliance with management,externalauditorsand internalauditors toensure thatthebusinessoftheCompanyanditssubsidiarieswasconducted with adequate internal control and riskmanagement, and the reported financial statementswere accurately prepared using generally acceptedaccountingprinciplesandincompliancewithrelevantlawsandregulations.

(Mr. Prathueng Srirodbang)Chairman of the Audit Committee

February 15, 2011

Cloud satisfied you withgreen resource forsuccessful operation.

mCompany InsightZ Business Overview and Revenue Structure RatioZ Risk FactorsZ Social ContributionsZMajor DevelopmentsZ General Information of the Company and SubsidiariesZMajor ShareholdersZ Investment Structure of Shin GroupZ Corporate Governance

B Business usiness OOverviewverview


CS LoxInfo Public Company Limited Withcontinuedimprovement,CSLOXINFObecomestheinternetserviceproviderwiththewidestrange

ofservices,servingallgroupsofcustomer,employingvariousmethodsoftechnology.Wecanserviceboththe

individualandthemulti-simultaneous-users,whichiscalledcorporateservice,particularlyforthosecorporations

requiringinternetfortheirbusinessesoperations.

Major Services of the Company1. Internet service via leased circuit (Leased Line) TheserviceisdesignedforcorporatecustomerswhorequiretheInternetforoperatingtheirbusinesses

byusingmanycomputersatthesametime,suchas,orderssendingandreceivingfromoversease-mail,inter-

branchdatatransmissionbothlocallyandinternationally,onlinecustomerservice,etc.Lastyear,2007,wehad

strengthinsustainingservicequalitystandardswithanetworkcapabilitythatcouldprovidecontinuousservice.

Wehadengineeringandafter-salesserviceswiththeISO9001:2000certificationstandard.Wealsohadvalue

addedserviceswhichwereflexiblewiththerequirementsofeachcustomer,especiallysecuritysolutionsand

networkconnectionservice.Thetargetgroupgrowscontinually,bothinnumberofcorporatecustomersand

quantityofthebandwidthutilizationforeachcustomer.

2. Internet Data Center (IDC) IDCistheservicewithinafullscaleofDataCenterfacilitiesandreliableinfrastructure;transmissionthrough

largeinternationalanddomesticnetwork,coolingcontroloperation,robustandredundancypowersystem.

Business Overview and Revenue

Structure Ratio

Cloud satisfied you withgreen resource forsuccessful operation.


Providedoptionalservicesincludedataback-upservice,securityservice,disasterrecoverysiteandcloud

computingserviceetc.

3. IT Solution Services for corporate customers ITSolutionServicesincludedesignandimplementationofcomputerandnetworksolution,securitysystem,

communicationsystemonIPnetworketc.TheCompanyprovidesone-stopservicecustomizedbyaspecific

requirementofanindividualcorporatecustomersuchas

• Managed Service/Network:Includefullyoutsourcednetworkmanagementarrangements,including

advancedfeatures likeIPcommunication,virtualprivatenetwork(VPNs),managedfirewallsand

monitoring/reportingofnetworkservers.

•System Integration Service:Specialize in smallandmediumbusiness information technology

procurement,deploymentandsupportservices.CSLOXINFOhavepartneredwithworld-classindustry’s

leadingtechnologyand localvendors todeliver themost reliableandcost-effectivesolutions

available, includingnetworkmanagementsystems,mailandbasicbusinessapplicationservers,

backup,virtualization,anti-spamandanti-virus.

• Cloud Computing and Virtualization:Offerflexibleandreliableprocessingpower,bandwidth,and

storagecapacity,whichharnessthemassiveresourcesofCSLOXINFOdatacentersandmakethem

availabletocustomersondemand,tomeetthechangingday-to-dayneedsofbusinesswithoutthe

burdensofcapitalexpensesandITstaffoverhead.

Market Condition and Competition Overall,thereisintensecompetitionintheTelecommunicationIndustry.Itisnotonlyfromthenewinternet

serviceprovidersbeinggrantedlicensesfromtheNationalTelecommunicationsCommittee,butalsofromthe

newtelecommunicationnetworkproviders.However,wecanstillcontinuallymaintaingoodperformanceby

implementingpoliciesfocusedoncorporatecustomers,andexpandingourcustomerbase.Thisshouldallowus

tomaintainourleadingstatusamongtheleasedlineinternetserviceproviders.Ourkeystrengthsareasfollows:

•Thecustomers,bothindividualandalllevelsofbusiness,trustinthequalityserviceunderthename

“CSLOXINFO”.

•OwnInternationalInternetGatewayandNationalInternetExchangehavebeenoperatedandmanaged

inhigh-quality,reliabilityandcost-effectiveforservingcustomers.

•Thereareskilledandprofessionalengineerstosupportininternetservice,ITsolutionandInternetData

Center.

•Therearealargenumberofexistingcorporatecustomerbasewithcontinualdemandinturnkeyand

professionalhelpforInternet,ITsolutionandrelatedITsystems.

Marketing Strategy TheCompanyiscommittedtoprovidetop-qualityinternetservices,bothinaccesstotechnicalnetworks

andafter-salesservices,inordertoincreaseusageandthecustomerbase,butwithnopolicyofcompetingon

price.Thekeymarketingstrategiesareasfollows:


1. Build brand image as Thailand’s leading top-quality internet service provider WepositionedCSLOXINFOasapremiuminternetservice,offeringawiderangeofproductsandservices

torespondtovariousneedsbycommunicatingthestrengthofeachservicetothecustomers,aswellasdelivering

theserviceatthelevelthatthecustomerswillbeimpressedorsatisfiedwith,bothbeforeandaftersales.

2. Determine on service and quality improvement Wemaintainthepolicyofmanagingtheinternationalanddomesticbandwidthtobesufficientand

justifiedwiththenumberoftheusers,togetherwiththecontinuousimprovementinefficiencyofthenationwide

networks.Inordertobuildconfidenceamongcustomers,ISO9001:2000,andmanagementsystemwithclear

indicatorsandmeasurement,wereimplemented.

3. Maintain good relationships with customers Westrivetocreatethehighestcustomersatisfaction.Otherthanfulfillingcoverageservices,demanding

proactivetechnicaladvicetocorporatecustomersisalsooffered,e.g.,holdingknowledgesharingseminarsin

majorprovincesacrossthecountry,visitingcustomersregularly,andcheckingcustomers’satisfactionbyusing

surveytechniques.

4. Leverage technology to increase competitive advantage Wehavecontinuouslyinvestedinthedevelopmentofthesystemandnetwork,whichnotonlysupport

thecountry’sgrowingdemand,butalsoimprovestheoverallserviceefficiency.

5. Continuously create new services and solution based on customer needs Wehavecontinuouslydevelopednewservices,e.g.,ManagedService/Network,SystemIntegration,

CloudComputing/Virtualization.

6. Develop network alliances Duetothefactthatthenetworkhassignificantimpacttotheservices,wehavedevelopedgood

relationshipswithallnetworkproviders.Moreover,sincethecompanyhasalargepremiumcorporatecustomer

base,usingleasedlineservices,wederivegoodbusinessandtechnicalcooperationfromthealliances.

7. Sales Promotion Wecarefullydesignsalespromotioncampaignsthatfitwithourtargetcustomersinordertoretaincurrent

customersandcooperatewithalliancesinsteppingintonewmarketsorlaunchingnewservicesthatattractnew

customers.Wealsopromotecampaignsthroughthemediaandhavemarketingactivitieswithourtarget

customerscontinuously.

Business Opportunity Inlightofeconomicdownturn,TheCompanyforeseesanopportunityforbusinessexpansiontocorporate

customerswhoneedtomanagethecostwhilstusingasecureITsystemtobeincompliancewiththeComputer


law.Therefore,in2011,wewillstrivetofulfilltherequirementsofourcorporatecustomersbyfurtherdeveloping

thefollowingservices,

• Internet Data Center:TheservicewithinafullscaleofDataCenterfacilitiesandreliableInternet

infrastructureincludingoptionalservicesservedvariouscustomersneed.

• Managed Service/Network :Theserviceincludesfullyoutsourcednetworkmanagementarrangements,

includingadvancedfeatureslikeIPcommunication,virtualprivatenetwork(VPNs),managedfirewallsand

monitoring/reportingofnetworkservers.

• System Integration Service:Specializeinsmallandmediumbusinesstechnologyprocurement,deployment

andsupportservices.CSLOXINFOhavepartneredwithworld-classindustry’sleadingtechnologyandlocalvendors

todeliverthemostreliableandcost-effectivesolutionsavailable,includingnetworkmanagementsystems,mail

andbasicbusinessapplicationservers,backup,virtualization,anti-spamandanti-virus.

• Cloud computing and Virtualization:Theservicethatcanofferflexibleandreliableprocessingpower,

bandwidth,andstoragecapacity,whichharnessthemassiveresourcesofCSLOXINFOdatacentersandmake

themavailabletocustomersondemand,tomeetthechangingday-to-dayneedsofbusinesswithoutthe

burdensofcapitalexpensesandITstaffoverhead.

Teleinfo Media Public Company Limited TeleinfoMediaPublicCompanyLimited(TMC)isThailand’sleaderintransactionalmediawiththemost

comprehensivebusinessdatabaseinover3,000categoriescoveringmorethan600,000establishmentsnationwide

underthebrand‘ThailandYellowPages’,offeringthevaluableandinsightfulmarketingresources.

Our main businesses include:1. Thailand YellowPages Telephone Directory publication Thetelephonedirectoriescomprise:

• ThailandYellowPages-BangkokThaiedition.FreecommercialandresidentialdistributioninGreater

Bangkok

• ThailandYellowPages-BangkokEnglishedition.Freedistributiontobusinesstravellersandexpatriates

livinginThailand

• ThailandYellowPages-Regionaledition.Freecommercialandresidentialdistributionin5regionsin

Thailand-theNorth,Northeast,Central,EastandSouth

Thailand Corporate Pages.AnexhaustivedirectoryofallbusinesscategoriesinGreaterBangkok.

City YellowPages.Acity-versiondirectorywhichisavailableformajorprovincesincludeNonthaburi,

Prathumthani,Samutprakarn,Nakhornratchasima,Chonburi,Songkla,ChiangMaiandKhonKaen.

Home YellowPages.Aperfectyellowpagesforhomeloverslookingforhomeimprovementandlifestyle

productsandservices.

2. Thailand YellowPages Call Centre Ourprofessionalassistantsat1188CallCentre,fluentinThai,Englishandlocaldialects,provideinformation


onproductsandservices,listingofbusinessestablishments,governmentagencies,restaurants,visitingplaces,

travellingguidesaswellasemergencyandindividualnumbers,coveringover6millionnumbersnationwide,

plusfeaturedservicesincludingAISnumbertoinquireddestinationlinetransfer,ThaiandEnglishSMSassisted

service,etc.

3. Online YellowPages and other web-based service • www.yellowpages.co.thprovidesthemostupdatedonlinebusinessdirectoryinbothThaiandEnglish

•m.yellowpages.co.thoffersproductsandservicessearchviamobilephones

• market.yellowpages.co.thisanonlinebuyer-to-sellerdirectmarket

• Ads.yellowpages.co.thprovidesthefully-integratedonlineadvertisingservices

• www.hunsa.comisanentertainmenthubforround-the-clockupdates

Fully-integrated Online Advertising Afullrangeofonlineadvertisingservicesisprovidedtomeeteverycyberbusinessneeds.Theservices

include:

• YellowPages AdBannerprovidesexcitingandeye-catchingmultimediabanneradvertising • YellowPages AdSearchstrategicallyplacesadvertisementsonwebsitepagesshowingresultsfromsearch engine’skeyqueries

• YellowPages Landing Pageoffersattractiveone-pagewebdesignwithcompleteproductsorservices information

• YellowPages Privilege Cluborganizesonlinepromosfeaturingspecialdiscountsoroffersinaformof mobilecoupons

Wealsoasaleagentofreputedonlineadvertisingsitesofferingarangeofonlineadvertisingattheworld’s

topsearchenginesorglobalsocialmedianetworks:

• Google Adwordswhichdisplaysadsonsearchresultsofdesignatedkeyword • Facebook Adswhichallowsadstoexactlyreachyourtargetedcustomers • Facebook Fan Pagewhichpromotesbrandsorproductsthroughforwardingpagetopeopleinthe socialnetwork

4. Other services “2Get&2Load”isthenon-voicecontent-orientedphoneservicesavailableat1900222xxxandthe*9xx

serviceisforAISsubscribersonly.WealsoofferanexclusiveembassyappointmentforVisaapplicationparticipated

byhigh-trafficembassiesincludingItaly,GermanyandSwitzerland.

Alsoavailableisthedirectmarketingresource,e.g.,thedatarentalservice,whichisaone-stopservice

rangingfromdatabaselease,managementandmaintenance,mailinglist,telemarketingservice,letter-shopping

servicetooutsourcingcallcentre.

Thai Advertising Industry Outlook* AccordingtoNielsenMediaResearch(Thailand),thefirst10monthsoftheyear2010sawaboostof12.01%

intotaladvertisingspendingfromthesameperiodofthepreviousyear.Spendingbymediawasmagazine(up


2.83%)followedbynewspaper(up6.31%),cinemaads(up24%),in-storemedia(up32.99%),radio(down1.70%),

television(up15.5%),outdoor(down4.63%)andmobilemedia(up20.16%).Onlineadvertisinggrewby19.29%

fromthesameperiodofthepreviousyear.Basedonthespending,onlineadvertisinginThailandoffershuge

potentialgoingforward–thebrightprospectfor‘YellowPages’business.

*Information obtained from Nielsen Media Research (Thailand) and Advertising Association of Thailand.

Marketing and Competitive Situation Dynamicchangesinconsumers’mediaconsumptionandinformationsearchleadtoamorecomplex

andsophisticatedmediaselectionprocess.Advertiserstendtospendinawiderrangeofmediatooptimize

theirtargetedaudiencereach.Theseareevidencedbystaticgrowthofprintedmediawhileonlineadsenjoy

astrongandconsistentgrowth.

Werespondtothetrendsbylaunchingnewproductswithstrongermediaoutletsbothinprintedand

electronicmedia.Wehavebeenimprovingourdatabasetoensureaccurateanduptodateinformationfor

applicationat1188YellowPages,www.yellowpages.co.thandm.yellowpages.co.thservices.Nextyearthezoned

YellowPageswillbeintroducedforevenfasterandclosetsearchresultsforusers.

Business Growth Opportunities Wehavebeencreatingandenhancingthebrandvalueofourdirectoryservices.Theintroductionof

YellowPagesPortfoliooffershorizontalsearch(bybusiness)aswellasverticalsearch(byconsumergrouporarea)

inarangeofprintedandelectronicmedia.

Duetothelaunchingofmobileinternet(EDGEandGPRS)andsmartphones,wearedevelopingsearch

alternativestomeettheneedsofmobilephoneusers(amountingtoover65subscribers)including:

•SMSenquiryat4899007

•Mobilewebsite/WAPsitesearchatm.yellowpages.co.th

•NewapplicationsforiPhoneandsmartphones

Allofourinnovativeservicesensurethatdemandforproductsandservicesareavailableatalloutletsfor

ultimateconvenienceofconsumersthroughYellowPagespublication,1188CallCentre,theweb-basedservices

atwww.yellowpages.co.thandm.yellowpages.co.th.Weareconstantlyimprovingandcreatingaddedvalueto

advertisersinThailandYellowPageswhichcontinuetoservebothconsumersandbusinessesastheultimateand

primaryfullservicedtoolsforcommercialandlifestyletransactions.Regardlessofchangesinmediaconsumptions

anddespiteoftheeconomicandpoliticalsituations,therearealwaysdemandsforgoodsandservices,with

whichwewillstridemeetwiththeresearchanddevelopmentofinnovativeproductsandservicesforanon-

goingcreationofprofitablebusinessesundertheshort-termandlong-termvisionaryplans.

AD Venture Company Group ADVenturePublicCompanyLimited(ADV)standsasacompany99.99%ownedbyCSL.Itcurrently

operates2subsidiaries-ShineedotcomCo.,Ltd.(SHINEE)andHunsadotcomCo.,Ltd.(HUNSA).

OnOctober28,2010,ShineedotcomCompanyLimited(SHINEE)hadregistereditsliquidationwithMOC,


andtheprocessofliquidationwascompletedonJanuary5,2011.

ADVoperatesasaMobileContentProvider.Underthename“Shinee.com”,itmanagescontentscollected

fromtheirvarioussources,anddeliversthosecontentsincludingnewsandentertainmentinformationtothemarket

viamobilephonetechnology.Besides,ADVprovidescontentsviaaportalwebsiteunderthename“Hunsa.com”.

As a content provider, ADV’s business is divided into two main operations.1. Mobile Content Targetingusersaged15-50yearsold,ADVprovidesmobilecontentservice,branded“Shinee”,viaall

mobilephonenetwork;AIS,DTAC,TrueMove,andHutch.Audiotex,whichincludesallfixedline,canalsoreceive

thistypeofcontents.Additionally,ordinarytelephonesystemisstillcapableforaccessingourservices.Thiscan

beaccessedbytwoserviceoptions:

1.1 Download the services to a mobile-phonethroughanymobile-phonenetworksbyenteringservice codeintotheIVRsystem,usingSMSdownload,orvisitingwapsiteHYPERLINK“http://wap.shinee.

com/”http://wap.shinee.comforcontentinstantdownload.Optionally,thecontentcanbealso

downloadedfromlinkedmenuonanynetworks’wapportal,.Afterdownloading,servicecharge

willbecollectedbythemobile-phonenetworkprovider,whichthecustomershaveregistered.

Alltheservicesarecategorizedasfollowing.

• Shinee Ringtone:offers4formatsofringtoneservices:MonophonicRingtone,PolyphonicRingtone, TruetoneRingtone,andFull-songRingtone.ThesetoneshavebeenaggregatedfromThaiand

internationalmusiccompaniesandavailablefordownloadregardingcustomer’spreference.

• Shinee Java game:providesgamesonmobile-phoneplatform,whichareplayablebypressingthe phone’sembeddedbuttonstocontroldirections.Wehavedeliveredarangeofgamesfromall

overtheworld;hence,variousgamestyles,e.g.action,adventure,sport,etc.,areofferedtoreach

allcustomer’sdemands.

• Shinee Wallpaper & VDO Clips:providesavarietyofwallpaperssuchasdrawing,cartoon,and photopicture,whichcanbedownloadedandsavedasamobile-phonescreensaver.Meanwhile,

VDOclipserviceallowsapproximateone-minutedownloadforviewingandstoring inthe

mobile-phone.

• Shinee News: presentsupdatednewsselectedfromourseveralalliednewsagencies.Theservice isavailableonSMSandWAPaccess.

• Shinee info Entertain: presentsstarandhigh-societygossip,aswellasupcomingmovieandmusic reportsfromrenownedsourcesprovidedbyouralliances.TheserviceisavailableonSMSandWAP

access.

• Shinee Horoscope:isahoroscopeserviceprovidedbyouralliedfamousfortuneteller.Theservice isavailableonSMSandWAPaccess.Thecustomerscanpurchaseaservicepertimeorsubscribe

throughtheIVRsystem,SMS,orWAP.

1.2 Hearing service details via audiotex: Theservicecanbeaccessedbydialingthetelephone numberindicatedintheadvertisement,thenfollowingthemenu,andlisteningtotheservicedetails.


2. Website Business ADVprovidesawebportalserviceunderthenameHYPERLINK“http://www.hunsa.com/”www.hunsa.com

-aninformativewebsitetargetingvisitorsaged10-35years.Thefollowingpresentsouraccessibleservices.

• News and entertainment:presentsupdatednewsandentertainmentreportsgatheredfromseveral

sourcese.g.newspaperwebsitesandHunsa’snewsteam.Thisserviceisfreeofcharge.

• Web-board:orChatroom,whichiswidelyopenforpostingopinionsonmiscellaneoustopics.The

serviceisfreeofcharge.

• Online Horoscope:providesahoroscopeservice,withinHunsawebsite,byarenownedfortuneteller

team.Theservicecanbeaccessedbysubmittinganindividual’sbirthdayandinquirythrough

Hunsawebsite.Oncethepaymentviacashcardismade,thestaffwilldelivertheresulttothe

customersthroughHunsawebsite.

• Advertisement:providesbanner-adserviceoneffectiveHunsawebsitewithover100,000visitors

daily.Theadvertisementcostsvariablyregardingthebanner’sposition.Customerspurchasingthis

servicearethosecompaniesandshopsaimingtopromotetheirproductsorserviceswithHunsa’s

banners.

Industry situation and competition Accordingtoprosperingtrendofthemobilecontentbusinesssince2004,alotofoverseaaswellaslocal

entrepreneursoperatetheirbusinessintheindustryincreasingly.ADVhasthecompetentmanagementand

marketingstrategy,itstronglyretainsitscustomerbasebythefollowingmethods:

• Maintainingahighservicestandardwithhonestyandundeceivingcustomers,whichresultinthe

riseofourcustomers’confidenceinselectingtheservicesofourcompany.

• Managingmarketingcostsbyfocusingoneffectivemedia,directingtotargetgroups.

• Focusingonservicesthatsatisfyacustomer’spreferenceandlifestyleandenhancingsatisfaction

byofferingmonthlyandbuffetsubscriptionprogram,whichfitsthecustomer’svalueandeconomized

budgets.

• AllyingastrongpartnerwithinShinCorporationGrouptoexpanddistributionchannels,andcarry

onmarketingactivities,e.g.,promotingpublic-relationviawebsite,MobileLife,One-2-Callcard,etc.

Marketing Strategy ADVstrivestoaccommodateacceleratedandaccurateservicesatafairexpensewithafter-saleservice

inaresultofanincreaseincustomerbase.Wediscourageanymarketingpoliciestodeceiveortakeadvantage

overourcustomers.ThemarketingstrategiesofADVarelistedbelow:

1. Focus on quality and service ADVreinforcesapolicytowardthenoveltyofcontentcarriedtothecustomers;thecontenthastobe

up-to-date,in-trend,andrichofselectionstocompleterequirementsofacustomerasaone-stopservice.

Additionally,ADVinsiststomaintainqualitycontrolinawholerangeofdownloadedservices;asaresult,

weactquicklyandaccuratelytodeliverexcellentservicetoourcustomers.


2. After-sale Service Themajorcriticalfactorofthemobile-contentproviderbusinessreliesonthecustomerservice,thatcan

bewellsuggestiveandalsoinformativetothecustomers’solutionrapidlyandadequately.Duetothisreason,

ADVempowersitscustomerservicewithacallcenterunittoeffectivelyserveandrespondtoanycustomer’s

queries.

3. Continuous development on novel services Inordertocompleteourtargetedcustomers’requirementsandpreference,ADVhasdevelopedvarious

formatsofservicesbymainlyconsideringtheirbehavior.

4. Niche Marketing ADVpositionstheservicestothosefrequentdownloaders,whosedatabaseisanalyzedandcategorized

fortheirbehavior.Therefore,appropriatemarketingandsalespromotioncandirectlyandeffectivelyreachthe

intendedtargetgroups.

Business Opportunity Duetofast,continuous,andincreasinggrowthofmobile-phonebusiness,privatizationoftelecommunication

industry,speedyadvancedtechnology,andrapidreductionofmobile-phoneprice,therethenappearsan

effectonthegrowingnumberofmobile-phonenetworksubscribers.ADV,thus,foreseesthelongpositivefuture

ofthemobile-contentbusiness.

Concerningwebsitebusiness,growthofinternetpenetrationratecreatestheincreaseofsearchand

consumptiontowardinteractiveandup-to-dateinformation-especiallyentertainmentnews.Therefore,new

servicesintheentertainmentsectionarebeingdevelopedasapartofincreaseinchannelstogainmorerevenue

alongwiththesegrowingopportunities.

Watta Classifieds Company Limited WATTAoffersaserviceonclassifiedadinthecompany’sprintedmattersandwebsites.WATTAalsostands

asaprintingmediacompany,whichproducesawiderangeofprintingmediafromdailynewspaper,weekly

newspapers,weeklymagazines,fortnightlymagazines,monthlymagazines,bi-monthlymagazinestoannual

verticalclassifieds,pocketbooksandetc.underthebrandof“WATTA”.

ProductsandservicesofWATTAcanbeclassifiedinto4maincategoriesasfollowings:

1. Classifieds in printing media WATTAprovidesallcategoriesofclassifiedservicessuchasjobs,cars,realestate,andetc.,inthecompany’s

printedmattersuchasnewspapers,weeklymagazines,fortnightlymagazines,monthlymagazines,bi-monthly

magazines,annualverticaldirectories,pocketbooksandetc.

2. Publishing and selling books Inordertofacilitatesub-advertisementorclassifiedservicesinprintingmediaforWATTA’scustomergroups


andreaders,wholookforinformationaboutproductsorservices,thecompanyhastopublishanddistribute

qualityprintedmattersundervariousbrandsofWATTA,whichcanbecategorizedasfollowings:

2.1 News and Feature: World Today (Lok-Wannee), adailynewspapercontainingcontentsconcerningpolitics,economics,social,

entertainment,health,varioususefultips,andclassified.ItisissueddailyfromMondaytoFriday.

World Today Fineday (Lok-Wannee-Wan-Suk), aweeklynewspaperwiththesamecontentsasthedaily

WorldToday.AsaFridayissue,itfocusesmoreonfeaturesandanalysiscolumnssuchaspolitics,economics,

entertainment,sportsandetc.ItisissuedoneveryFriday.

2.2 Automobile: Car Today (Rot-Wannee)presentsinformationofautomobiletrading-bothusedandnewcars,and

updatednewsintheautomobileindustry,includingvarioususefultipsconcerningautomobiles.Itisissuedweekly.

Red Tag (Pai-Dang)providescontentsaboutadvertisementofthenewestcar,therealdriver’sinterview,

andvarioususefultipsaboutusageandmodification.Itispublishedasabi-monthlymagazine.

2.3 Vacancy: Job Today (Ngaan-Wannee), Job Resources (Lang-Ngaan), Find Job Find Easy (Ha-Ngaan-Ha-Ngai),

Great Jobs (Ngaan-Dee-Dee), Jobs Throughout Thailand (Ngaan-Dhua-Thai), Urgent Wanted (Rab-Samak-Duan),

Smart Job, (Sanuk-Ngaan), Job Guide (Khoo-Mue-Ngaan), and New Job (Ngaan-Mai),allcontaininformation

concerningjobvacanciesandjobhunting-includingarticlesandupdatednewstodevelopcapabilitiesofjob

applicants.Themagazinesareonstandweeklyandfortnightly.

2.4 Real Estate: Building Today (Arkan-Wannee: monthly) and Buying Home Guide Book (Khoo-Mue-Suu-Baan: bi-monthly),

containinformationconcerninghouse,buildingandlandtrading-includingusefultipsandupdatedmovements

ofrealestatebusiness.

2.5 Education: Education Today (Kansuksa-Wannee):Afortnightlymagazine,whichprovidesinformationconcerning

educationalresourcesorinstitutions,whicharebothofstatesandinprivatesectionlocallyandoversea.It,in

addition,includestheinformationabouteducation,training,personaldevelopment,andlocalandinternational

scholarships.

2.6 Vertical Classifieds (Directories): Gift Ideascontainsinformationaboutproductionsourcesorretail-wholesalestoresanddistributorsordering

andimportgifts,premiumsandvariouscollections,includinginterviewarticlesofwell-knownpeopleandvarious

usefultips.

Condo of the Yearprovidescontentsaboutfurnishedcondominium,whichisreadyforoccupationand


availableinthemarket-bothcurrentandnewprojectsinBangkokandperimeters.

100 Most Popular Used Car of the Yearprovidesinformationconcerningsecond-handcarinformation,

referentialpricesfortrading,andsecond-handcartradingcentersthroughoutthecountry.

Directories of Kindergarten in Bangkok and Suburban areaprovidesinformationofallpublicandprivate

kindergarteninBKKandsuburbanareasuchasmap,curriculum,recreation,playground,sports,numberof

HYPERLINK“http://dict.longdo.com/search/kindergartner”kindergartnerperteacher,tuitionandetc.

2.7 Pocket Books include: Educational Group e.g. Thoon-Rian-Free-Mee-Thua-Lok, Exit Book, Sob-Trong-Rian-To-Mo-Ratthaban,

Work & Travel in USA, Luk-Chang-Song-Sai,etc.

Information and Knowledge Group e.g. The Wonders of the World Architecture:theAncientperiod,the

MiddleperiodandtheModernperiod,etc.

Comic Book Group e.g. Nane-Bhayom-Jom-Yung, Bhra-Bhayom-Chabab-Cartoon, Kham-Kham

Dhamma, etc.

Children Book Group e.g. Look-Chang-Tham, Looh-Chang-Songsai,etc.

Political Group e.g. Kwam-Jing-Wannan, Khabuan-Kan-Lim-Jaoetc.

2.8 Other Books include: Booksormagazinespublishedinordertorespondthemarketdemandandthenationalsituation.

3. News and Business Services on internet and mobile-phone WATTAoffersadplacementandcontentproviderservicesonvariouswebsites,telephone,andmobile-

phone.Themaincontentsarerelatedtothecurrentcompany’sprintedmatterproductsasbelow.

3.1 Services on website: • DailyWorldToday.com:anewsandinformationwebsitecontainingkeycontentsasreferentialtothe

DailyWorldToday(Lok-Wannee-Rai-Wan)andWorldTodayFineday(Lok-Wannee-Wan-Suk)such

ascontentsregardingpolitics,economics,social,sports,entertainment,heath,innovation,real

estates,automobileandvarioususefultips.Besides,thewebsiteincludesreal-timenewsreports

andspecialnewsscoops.

• eCareasy.com:awebsitecontainingcontentsaboutautomobiletradingadvertisementsandother

automobile-relatedbusinesses.Besides,thiswebsiteprovidescontentsrelatedtoinformativenews

andinformationineveryaspectofusedandnewcars,includingcartradecentersthrough

outcountry.

• eJOBeasy.com: awebsitecontainingadvertisementregardingjobvacanciesandjobhunting,

whichthehiringcompanycansearchbio-dataoftheapplicantsdirectly.Thisincludesarticlesand

updatednewstodevelopcapabilitiesoftheapplicants.

• eHomeeasy.com:awebsitecontainingcontents,thatinvolvessalesandpurchaseclassifiedsof

houses,buildings,andlands.Thecontentsincludenews,articles,information,aswellasmovement


inreal-estatebusinesses.

• eLearneasy.com:awebsitedeliveringadvertisementsabouteducationalresourcesorinstitutions,

whicharebothofstatesandinprivatesectionlocallyandoversea.Besides,thiswebsitealso

providesinformationabouteducation,scholarships-bothlocalandoversea,training,personal

development,andotherinterestinginformationforpupils,students,andworkingpersons.Thereis

alsoanonline-partyonthewebsite.

3.2 Other services on telephone and mobile-phone platforms such as: • News Report group:providingshortnewsintheformofSMSsenttomobile-phoneseverydaysuchas

1)interestinglocalandinternationalnews2)sportsnewsandresults

• Local News Commentary group:presentsideasonbreakingnewsthatisprovidedintheformof

MMSsenttomobile-phones.

• Sports News Commentary and Review group:providingvariouscommentsandreviewsaboutsports,

suchas1)internationalfootballand2)Thaiboxing,intheformofSMSsenttomobile-phones.In

additiontoSMS,theycanbelistenedon-linethroughtelephone.

• Variety of contents group:providingavarietyofcontentsintheformofSMSsenttomobile-phones.

InadditiontoSMS,theservicescanbelistenedon-linethroughtelephonenumber1900,suchas

fortuneteller,sex,andreferentialpricesofautomobiles.

• Printing Media Content group:providingavarietyofcontent-downloadservicesconvertedfromall

printedmatterstomobilecontents-suchascolumnsandcartooncomicsintheDailyWorldToday

(Lok-Wannee),jobvacancies,educationinformation,scholarships,highereducationinstitutions,

andetc.Somecontentscanbedownloadedaslistenableaudiofileswithamobile-phone.

• Sub-advertisement group:offeringsub-advertisementplacementserviceinallcategories,whichare

submittedthroughamobile-phone’sSMS(textonly)orMMS(textandpictures),andsubmittedon-

linethroughtelephonenumber1900.Allpostedadvertisementswillbepublishedinprintedmatters.

Nonetheless,theyremaindownloadablewithamobile-phone.

4. News and Advertisement Services via New Media under campaign “WATTA on Mobile” Since2009,WATTAhasinitiatedanewcampaigncalled “WATTAonMobile”,whichturnsintothe

latestinnovationofcommunicationbusiness-suchasJobonMobile,CaronMobile,RealEstateonMobile,

DailyWorldTodayonMobile,andetc.Theseservicesareprovidedasone-stopsiteservices,whichcaneaseusers

toreadordownloadnews,features,andinformation.EvenfillingjobapplicationfromWAPPage,WAPPush,or

bysendingSMSwithmobile-phonesbecomesmorepossibleanywhereanytime.

Industry and Competition Theoveralloftheprintedindustryin2010isgrowingcontinuouslydespitefacingtherecessiondueto

thedomesticpoliticalcrisis;therefore,theconsumersaremorecarefulabouttheirexpense.Itisexpectedthat

the2011tendencywillexpressexpandingtrendaccordingtothebasiceconomicrecoveryfactorsandthetax


incentivesfromthegovernmentpolicy-resultinginincreasednumberofreaders.Forexample,taxreduction

onimportedpaperandVATor100%taxreductionforthosewhodonateorbuybookstoeducationinstitutesor

librariescanbeagreatsupporttotheexpansionoftheprintedindustry.

Marketing Strategy WATTAhasplacedagreatemphasisonprovidingsub-advertisementandclassifiedservices.Information

ornewspublishedinallofWATTA’spublishingmediamustbefresh,accurate,trustworthyandup-to-date.

Moreover,thecompanyappliesvariousstrategiessuchasMulti-brandingtoacquiremoremarketshareand

productdevelopmentforverticalProductLine.Thisincludespocketbookanddirectoryintheprintingdepartment

toprolongproduct’slife-cycleandderiveextendedaccesstoaparticulartargetgroup.

WATTAemploysvariousstrategiestoadaptitselftothechangeinconsumer’smediaacknowledgement

behavior.Launchingnewcontents-whichwellapproachtothedigitaltimescompatiblewiththechangeof

marketdirectionaswellasconsumers’demand-andutilizingsomemarketingactivitieswillbe,forexample,

encouragedinordertohitadditionalgroupsofcustomer.

Business Opportunities Obtaininghugedatasourcesandeffectivestoragesystem,thecompanysustainsreadinesstorespond

demandacquiredfromcustomers.Thecompanyalsogetsprompttodeliverservicestoallcustomersthrough

digitalmediaincludingmobile-phoneplatform.Thespeedoftechnologyisthegreattool,whichhelpsustoreach

customersmoreeffectivelyandcoveralldailylivingthroughout24hours.Currently,thecompanyispreparing

itselfforadvancementtothedataservicebusinessastheContentProvider.Allyingwiththeinnerandoutsider,

itisbesidesgettingreadytomoveintoothertypesofmedia-especiallytheonlinemediaandmobilephone

-inordertoaccommodatethegrowingnumbersofinternetandmobilephoneusers.


Revenue Structure Ratio The structure of revenue of the Company’s group pursuant to the consolidated financial The structure of revenue of the Company’s group pursuant to the consolidated financial statements that have already been audited during 2008, 2009 and 2010 can be classified statements that have already been audited during 2008, 2009 and 2010 can be classified as follows:as follows:

Units:MillionBaht

Units:MillionBaht

In2008,2009and2010,themainrevenuebaseofTMCarisingfromtheprovisionofadvertisementservicesin

YellowPages,accountedfor88percent,94percent,and86percentofitstotalrevenuerespectively,thedetailsofwhich

areasfollows:

Description Processby

%holdingby CSL

Consolidated Financial Statement (Audited)

2008 2009 2010

RevenuefromInternetServices CSL

• viaTelephoneLine 95 3% 58 2% 41 2%

• viaLeasedLine 1,041 39% 1,074 41% 1,121 41%

• viaBroadband 234 9% 199 8% 144 5%

Total Revenue from Internet Services 1,370 51% 1,331 51% 1,306 48%

RevenuefromTelevisionTransmission CSL 29 1% 21 1% 18 1%

RevenuefromYellowPagesBusiness TMC 100% 831 32% 691 27% 618 23%

RevenuefromMobileContentBusiness ADV 100% 91 3% 245 9% 328 12%

RevenuefromPrintClassifiedsBusiness WATTA 60% 227 9% 199 7% 190 7%

Revenuefromothersalesandservices CSL 54 2% 99 4% 217 8%

Total Revenue from Sales and Services 2,602 98% 2,586 99% 2,677 99%

OtherIncome 62 2% 28 1% 24 1%

Total Revenue 2,664 100% 2,614 100% 2,701 100%

Types of Revenue 2008 % 2009 % 2010 %

AdvertisementinDIRECTORIES 744 88% 666 94% 540 86%

AdvertisementinVOICEBUSINESS 87 10% 25 4% 78 12%

Total Revenue from Services 831 98% 691 98% 618 98%

Otherrevenues 15 2% 15 2% 11 2%

Total Revenue 846 100% 706 100% 629 100%


Risk Factors In2010,thebusinessunitsthatcontributedmateriallytotherevenueandprofitoftheGroupwere1)Internetserviceprovider(ISP)with57%oftotalrevenueand26%oftotalnetprofitoftheGroup,2)YellowPagesbusinesswith20%oftotalrevenueand13%oftotalnetprofitoftheGroup3)Infotainmentviamobilephonewith15%oftotalrevenueand58%oftotalnetprofitoftheGroupand4)Classifiedprintadsservicebusinesswith7%oftotalrevenueand1%oftotalnetprofitoftheGroup.

ThebusinessesoftheGrouparesubjecttothefollowmajorrisks.

Industry Risk 1. Unfair Competition under the present regulations and requirements of the telecommunications industry ISP business:The telecommunication industry is governed and regulated by rulesandregulationsaligningwiththeConstitutionandrelevantActsunderthethepolicyofcompetitionliberalizationpromotion.Asaresult,largetelecommunicationoperatorsarefreetoobtainallbusinesslicenses.Thelargeoperatorsalsohavecapitalandtelecommunicationnetworkatthemorecompetitiveadvantagescalethanthesmalleroperatorswhichresultedtoanunfaircompetition.Thelargeoperatorscanofferahighwholesalepricetosmalleroperatorswhileofferinglowerpricetoendcustomers. However,theCompanymitigatedtheriskbyadoptingastrategyoffocusingonproductandservicesegmentsinwhichtheCompanyenjoyscompetitiveadvantageandconcentratingonmarketsegmentswitheffectivedemandforsuchproductsandservicestoavoidtheadverseconsequenceofaggressivepricingadoptedbycompetition.Inparticular,theCompanyemphasizesservicequalityleadingtohigherlevelofcustomersatisfaction.TheCompany continually reviews the delivery and service gaps to be competitive inservingcustomerneeds,andinthisrespecthascontinuedtodevelopitstelecomnetworkinfrastructuretoreducedependencyandincreasenegotiationpowerwithcounterpartieswhichinturnarealsocompetitors.TheCompanyalsoemploysdiversificationinseekingnewsourcesofrevenuetobothenhanceandprotecttherevenuebasethatissubjecttocompetitivepricingerosion. Infotainment via mobile phone:Withreferencetothenotificationregarding“therighttoretainmobilenumberportability”whichhasobjectivetoallowthesubscriberstousethesametelephonenumberswhentheyswitchtelephoneoperators.Itistoreservetherightofthesubscriberstousetheirexistingnumbersfortheirconveniences,andtoenablethecountrytousemobiletelephonenumbersinamoreefficientmanner.Asmobiletelephohesubscribersarefreetochangemobiletelephoneoperators.Shinee’sbusinessisvulnerabletosubscribersswitchingtoanoperatorthatisnotreadytoprovidetheinfotainmentservicesubscribedfor. Inmitigation,SHINEEstrivestohavegoodrelationshipswitheverymobileoperatorto

enhanceitsdeliveryplatformandaccesschannels.


2. Competition across the advertising media YellowPages business:Asthisbusinessisnolongersubjecttolicensingregulation,newplayersarefreetoenterthismarket.Moreover,theadvertisingindustryisalsoaffectedfromcompetitionacrosstheadvertisingmediaplatformsbecausetheadvertiserscanchangethemediafollowingthechangeoftheirconsumers’behavior. However,TMChasmigratedfromprintingbusinesstocyberspaceaswell,e.g.,searchingoninternet,whichallowsadvertisingsalesonitswebsite,uptoon-lineservicing.

3. Economic Risk ISP business:ThecreditcrisiswhichwasoriginatedintheUSandEuropein2008andtheglobalevolutionintheinformationageallowedpeopleateverycorneroftheworldtoaccessinformationmorerapidly.Countriesadaptedandresultedinanun-severeeconomicimpactintheircountrieswhichtherecoverytooknotsolongtime.ThisincludedThailand.However,duetothevariousfactorsaffectingtheusers’decisionmakings,thecustomersaremorecarefulinchoosinganinternetservicepackagebyconsideringmoretheeconomicfactor.TheimpactontheCompanywastheinabilitytogrowitsbusinessasplanned. Inmitigating the risk,we focusedoncostsandexpensecontroland investmentpacingtocushiontheimpactonprofitability. YellowPages business: ThebusinessofYellowPagesissensitivetotheeconomichealthofthecountry.Asaresult,thecarefulnessoftheadvertisersinrecentbusinessrecoveryandotherfactorsaffectingtheadvertisersandusers’decisions,YellowPages’salesdeclinedincomparisonwiththepreviousyear. TheCompanysoughttomitigatethenegativeimpactofadvertisinginprintmediabydevelopingabundlingproductbetweenprintandonlineonmobilephoneandinternet.Theadvertiserwouldbeabletoadvertiseonanyplatformfittingthebestwiththeirtargetcustomers. Furthermore,theCompanydividedtheYellowPagesinBangkokinto4zonesinorderthatthedirectoryuserscandothesearchmoreconveniently,fasterandeasier. Classified print ads. service business: SimilartotheYellowPagesbusiness,theriskfromcarefulnessofadvertisers,paymentsmaking,andrelevantfactorsresultedinalowerdemandforhomesandcarsinthesecondarymarkets,lowerjobvacancies,andlowerclassifiedadvertising. However,theCompanyanticipatedtheeconomicimpactandthushadestablishedriskmitigatingprocedurebyimprovingitsproductqualitytoincreasethepopularityamongreaders, organizing activities and exhibition booths to promote the products branding.Atthesametime,theCompanyhaddevelopedverticalproductsinlinewiththetrend,andprovidedinformationaboutspecificgoodsandsellersaccordingtoconsumers’needse.g.searchingofgoodsviamobilephone.Newsourcesofrevenuewerealsoexplored,liketheproductionanddistributionofgreatervarietyofpocketbooks.


Operating Risks

4. Risk arising from technology and consumer behavior changes ISP business:Currently, internet technology is changing quickly and continuously.Consumerneedsarealsochangingfollowingtheevolutionofnewproductsandservices.Highspeedinternetservices,internetservicesonmobilephonewhichareincreasinglygainingpopularity.ServiceoncomputerisalsomovingintoCloudComputingservicebymakingitworkwiththeinternetnetwork.ThesemaymakethecurrentproductsandservicesoftheCompanybecomeoutofdate. Therefore,theCompanyfollowsupontheevolutionofthenewtechnologycontinuouslyforimprovingourservicestocatertothevarietyofconsumerneedswhicharecausedbytechnologicalchange,suchasCloudComputingservicesandinformationsystemserviceinanorganization. YellowPages business:Thecurrentinternettechnologycausesnewchoicestosearchdataandputadvertisinginvariousforms.Then,theenduserscandosearchinginmanychannels,suchasoninternet,phone,etc.Asaresult,popularityofYellowPagesbecomesdecreasing. Therefore,theCompanydevelopedsearchenginesofbusinessinformationinThailandfromtheexistingdatabasebyusinginternettechnologytorespondthecomputerandmobileusers,suchasdataenquiryservicebySMS,mobilesearch,developingapplicationonSmartPhonetorespondconsumers’demandonsearchinginformationforseekingandbuyingproductsandservicesineverycommunicationchanneldependedontheirconvenience. Infotainment via mobile phone:Consumers’usingofthisserviceisbasedonpopularitytrendintermofcontentandtechnologytoaccessthecontentthatarechangingrapidlybasedontheirageandtechnologicaldirection.ThischangeisconsideredasignificantfactorhavingimpactonShinee’sgrowthofrevenue,especiallythetechnologyadvancementthatallowstheconsumerstodownloadanduploadpictureormusicfromcomputertomobilephonedirectly. Inordertomitigatesuchpotentialdisintermediationimpact,theCompanyhassetupaunittocontinuallyconductconsumersurveystoenablethedevelopmentofproductsandservicesthatconsistentlymeetconsumerneedsandwants.

Human Resources Risk

5. Risk arising from being dependent on key personnel BusinessoftheCompanyanditssubsidiariesarecharacterizedasbeingdrivenandreliantonknowledge,capability,expertise,andexperiencesofkeypersonnel.ThedepartureofkeymanagementstaffandemployeesmayhaveanimpactontheCompany’soperationsgoingforward. Inmitigation,theCompanyhasestablishedapolicythatgivesagreatemphasisonhumanresourcesbyprovidingrelevanttrainingforemployeesatalllevels,buildingafriendlycorporateculture,improvingstaffbenefits,creatingagoodworkingenvironment,aswellashavingappropriatemeasurestomotivateemployees.ESOPwarrantshadbeenissuedandofferedtoselectedemployeesforthepurposeofperformancemotivationandemploymentretention.


Social Contributions

CS LOXINFOSMART CLICK and TOGETHER WE CAN and WE DO AtCSLoxInfoPublicCompanyLimited,CorporateSocialResponsibility(CSR)hasbeenanintegralpartofourbusinessoperations.Westrivetosupportnon-profitorganizationsaswellasrunningourownsocial-orientedprojectsandeventsoncontinuousbasis.Intheyear2010,theBoardofDirectorsadoptedapolicytoensurethatthemanagementandemployeesofalllevelsactivelyparticipatedinCSReffortsforthebestinterestamongstemployees,suppliers,communitiesandthesocietyasawhole.OurCSRprojectsinclude:

• ‘SMART CLICK’aimsatcreatinga learning societyby leveragingonourpotentialandexpertise inprovidingknowledgeontheInternetandinformationtechnologyaswellasusefulinformationcustomizedtomeeteachtargetaudience’sneedsforpracticalapplication.In2010,wefocusedonpromotingsustainableknowledgebycustomizingourtrainingcourses,teachingandlearningeventstoproperlymeettheneedsoftargetgroups,expectingtheresultstobeamplifiedandadoptedasamodelorpracticalguidelinesforotherrelevanttargetgroups. • ‘TOGETHER WE CAN and WE DO’istheemployee-orientedprogramtoencourageemployees’recognitionofenvironmentalvalues.Eventsincludemangroveplanting,checkdamconstruction,etc.


SMART CLICK – TOGETHER WE CAN and WE DOBuilding weirs and mangrove planting Employees worked in unison to restore and protect valuableenvironment by planting around 1,000 mangrove plantlets at KhlongKhondistrict,SamutSongkhramprovinceandbuildingweirsatLinChangTempleinPetchaburiprovince.


SMART CLICK – Kids Do WebCreative kids in website design HighschoolkidsintheGreaterBangkokjoinedthisonline-trainingtolearntodesigntheirownwebsiteandrealizetheirITpotentialusingtheuser-friendlywebsoftware, WordPress, Kids passing the course wouldget100MBspacefor1yeartodesign,developandshowcasetheirinnovativewebcontentstothepublic.


SMART CLICK - Baan Pamieng Fun Online Learning Baan Pamieng, Chaesong sub-district, Muang Pan district, Lampang province Forover4years,we,inconjunctionwithLampangNon-FormalEducationCentre,havebeendevelopingandmaintainingthesustainablecommunityatBaanPamiang,Lampangprovince. Activitiesin2010: • Donationofnewcomputersetsandimprovementofacomputerroom’sITsystem • Basic knowledge training on computer andInternetforcommunityheadsandyouths • Financial support for installationof via-satelliteInternet (IPSTAR)andeducational TVchannels (DTV) inconjunctionwithThaiComPublicCompanyLimited • Productionof thecommunitybackground infokitsforvisitorsandtouriststopromoteandmaintainlocalcultureandvalues


SMART CLICK - Tracking the Culture TrailA cultural youth camp Kids enjoyed traditional music andtales and learned from Thailand’s leadingcartooniststheskillandtechniqueondrawing,conceptualizationandstorytellingtoproducetheirveryowncomicstrips.

SMART CLICK - ‘Smart Kids’ At Ratchaburi Power Plant’s Children Day fair KidsintheneighbourhoodofRatchaburiPower Plant learned the ‘pros’ and ‘cons’of Internet and how to surf in the ‘smart’and‘creative’waythroughtheSmartClickhandoutsandInternetguideCDstogrowupas‘smart’membersofoursociety.


“Strong People, Strong Nation”SHIN Corporation social contributions SHIN Group’s CSR efforts focused onpromotingqualitypeople,familyandeducationwhichformkeycomponentsforthestrongandsustainablesocietyandeventuallyastrongnation.


CS LOXINFO - Building on as IT Service Leader In strengthening our position as the leadingproviderof full Internetand IT servicesandacquiringfirst-hand insights on target customers, both publicandprivatesectoraswellasindividuals,weopenourcompanyforvisitsbyteachers,students,customersandITbusinessgoers tooffer informationonourbusinessoperations,productsandservices.


Teleinfo Media Public Company Limited isprovidingthebuyer-sellerdirect,fast,convenientandtransactionalconnectionthroughitsThailandYellowPages.Throughthissameconnection,wealsocontributetothesocietyunderanumberofprojectsasfollows:

1188 YellowPages 24-hour assistance The project was initiated in 2009 where a largenumberof1188callswerefoundtobeseekingurgentfixingofpublicutilitiesduringoddhoursorlongholidayswheremostrepairshopswereclosed.Callerssimplydial1188torequestassistanceon5mainareasbeingelectricity,tapwater, air-conditioning, lock and automobile. Requiredrepairmenarethencontactedby1188forpromptservice. InconjunctionwithNonthaburiDepartmentofSkillDevelopment,theair-conditionercleaningserviceatBaht350feewasintroducedforthepublic’saccesstoaffordableservice in2010.Moreover, the set-upofcomprehensivenetworkofskilledrepairmenisplannedtocovermostareasinGreaterBangkok.Atpresentthelistgrowsto270,readyforpromptassistanceon1188calls.


HIV Charity Hotline ‘HIVCharityHotline’isafundraisingeffortforAIDSpatientsatPhrabatnamputempleinLopburiProvince.Donationscanbemadebysimplydiallingthe24-houraudio-textnumber1900-222-200.DuringJanuarytoAugust2010Baht1.4million(afterexpenses)wasraisedandpresentedtoPhraUdomPrachathorn(AbbotAlongkot)asfundsforprocuringAIDSmedicalsupplies.

Centre for business hit by protest PublicandprivateagencieshavebeenofferinghelpstoalleviatetheimpactoftheMay2010politicalprotestonbusinesses.ThailandYellowPagesestablishedthe‘YellowPagesforBusinessContact’asachannelforaccessandcontacttocompanies,stores,shopownersorentrepreneurswholostorrelocatedtheirplacesofbusinessasaresultoftheunrest.Businessessimplyleavetheirbusinessinformationat1188orwww.yellowpages.co.thforapromptdisplayoftheirinformationonthewebsitefreeofcharge. YellowPagesteamalsovisitedSilomandThonglorareatocollectinformationdirectlyfromshopownerstoensurenobusinessopportunitiesweremissed.


Watta Classified Company Limited Hasbeencontinuingwithitssocialpolicy,through2010WattahasbeencontinuallycontributedtomediatopublicizevariousactivitiesoftheSuanKaewFoundationofPhraArchanBhayomKanlayano.Besides,WattaalsohasothersocialactivitiessuchassponsoringlunchandgivingnecessarythingsforchildrenatthePhayathaiBabiesHomePakkred,beingco-operatedinPapaCeremonyaimingto

Paper recycling To promote paper recycling, TMC have beensupplying used YellowPages to Recycle Paper Products.Theusedpaperishandedouttohousewives,elderlyanddisabledpeopletoproducepaperhandicrafts forextraincome.Itemslikepaperbaskets,vases,flowers,boxes,keychains,photoframes,anddollsare lovedby localandforeignvisitors.Thisingeniousandenvironmentallyfriendlyprogramnotonlyencouragesrecyclingbutalsopromotestourismandcreationofaddedvaluelocalproducts.

provide resources forestablishing the technologymediademonstrationandservicescenterfortheblindinthe72yearanniversaryoftheThaiBlindeducationoftheBangkokSchool for theBlindAlumniAssociationwhilecontinuingthemainactivityofthecompanytoreducetheglobalwarmingproblemwithpowersavingandreduceuseofpaper.


Major Developments CSLoxInfoPublicCompanyLimited(CSL),formerlyknownasCSCommunicationsCompanyLimited,wasestablishedon20July1994asajointventurecompanyofCATTelecommunicationPublicCompanyLimited(CAT)andThaicomPublicCompanyLimited(THCOM).ThemajorbusinessoftheCompanyistheprovisionofinternet

datacenterservices,internetandsatelliteuplink-downlinkservicesfordomesticandinternationalcommunications.

Currently,theoperationundertheGroupcouldbeclassifiedinto5majorbusinesscategoriesasfollows: • InternetServicesBusiness(ISP):CSLOXINFOprovidesthetop-qualityinternetservicesunderthename“CS LOXINFO” to respond thecustomers’ requirementsby targeting in thebusinessandcorporatecustomerssectors.In2010,InternetServicesBusinesscontributes57%oftotalconsolidatedrevenue,whichmainlycomefromLeasedLineServices,InternetDataCenter(IDC)ServicesandEquipmentandSolutionsales.Moreover,InternetServicesBusinessalsocontributes26%oftotalconsolidatednetincomefortheyear2010. •YellowPagesDirectoriesAdvertisingBusiness(YP):CSLOXINFOprovidesthepublishingof theThailandYellowPagesthroughitssubsidiary,TeleinfoMediaPublicCompanyLimited(TMC).TMCprovidesmediaserviceforbusinessthroughYellowPagesTelephoneDirectoryandothermediaservices.Additionally,TMCalsoprovidestelephonesubscribersprofile,callcenter1188andaudiotexservicesforgeneralandentertainmentinformation.In2010,YellowPagesDirectoriesAdvertisingBusinesscontributes20%oftotalconsolidatedrevenue,and13%oftotalconsolidatednetincome. •ContentServiceProviderBusiness(Mobile):CSLOXINFOprovidesmobilecontentservicesandwebportal,namelyhunsa.comthroughitssubsidiary,ADVentureCompanyLimited(ADV)bytargetingin“MobileTelephoneConsumersusers”.In2010,MobileContentServicesBusinesscontributes15%oftotalconsolidatedrevenue,and58%oftotalconsolidatednetincome. •PrintedClassifiedMagazines(Print):CSLOXINFOprovidessub-advertisementandclassifiedservicesthroughitssubsidiary,WattaClassifiedCompanyLimited(WATTA)whichisprovidedsub-advertisementandclassifiedservicesandalsopublishesandsellsvariouspublicationsfromdailyandweeklynewspaperstoweekly,monthly,bi-monthlyandyearmagazinestopocketbooksandothers.In2010,PrintedClassifiedMagazinesBusinesscontributes7%oftotalconsolidatedrevenue,and1%oftotalconsolidatednetincome. • Satelliteuplink-downlinkServiceBusiness(Uplink-Downlink):CSLOXINFOwasgrantedaconcessionfromCATTelecomPublicCompanyLimited(“CAT”)toprovidetelevisionsignalandinternetaccessviasatelliteforaperiodof22yearsfrom9August1994to8August2016toprovidecomprehensiveUplink/DownlinkservicessuchasTVsignalingviasatelliteandlivesatellitebroadcasting.In2010,Satelliteuplink-downlinkServiceBusinesscontributes1%oftotalconsolidatedrevenue,and2%oftotalconsolidatednetincome.

2010Consolidatedrevenuewas2,701MB 2010Consolidatednetprofitwas400MB

2%

26%

58%13%


The Company’s Progress and Development 1994 •Wasestablishedasa joint ventureofCAT TelecommunicationPlc.and ThaicomPlc. under the named“CSCommunicationsCompanyLimited”

2003 •Changeditsnameto“CSLOXINFOCompanyLimited”inJanuary •ChangeditsstatustoapubliclimitedcompanyinNovember

2004 •RegisteredintotheSecuritiesandExchangeofThailandinApril,undertheTiggername“CSL” •Purchased63.25%ofTMC’ssharecapitalwithtotalpriceBaht507millionfromTOTinMarch •Increaseditssharecapital125millionshareswithIPOpriceatBaht9eachandlistedinSETinApril

2005 •Purchasedaddition36.75%ofTMC’ssharecapitalwithtotalpriceBaht510millioninApril •TMCchangeditsstatusintoapubliccompanylimited,changedthenametoTeleinfoMediaPublic CompanyLimited,anddecreaseditssharecapitalbyatotalofBaht521millioninAugust

2006 •Purchasedupto99.99%ofADV’ssharecapitalwithtotalpriceBaht35millioninSeptember

2007 •Purchased60%ofWATTA’ssharecapitalwithtotalpriceBaht80millioninApril •RuntreasurystockprograminAugust

2008 •ADVpurchased30%ofSHINEE’ssharecapitalwithtotalpriceBaht15.1millioninJanuary.Afterthis acquisition,ADVheld99.99%ofthesharecapitalofSHINEE. •Decreaseitssharecapitalbyreducingparvaluetomanageshareholders’return(0.75Baht/share) •LoxServewhichisasubsidiaryoftheCompanyhadliquidatedinDecember

2009 •InApril and June,ADVdecreased its sharecapital fromBaht 172million to Baht 11millionby reducingthenumberoforiginalsharesinordertooffsetagainsttheremainingdeficits •InApril,SHINEEdecreaseditssharecapitalfromBaht80milliontoBaht43millionbyreducingthe numberoforiginalsharesinordertooffsetagainsttheremainingdeficits •ADVchangeditsstatusintoapubliccompanylimited,changedthenametoADVenturePublic CompanyLimited

2010 •InOctober,TheExtraordinaryGeneralMeetingofShareholdersNo.2/2010ofSHINEE(asubsidiaryof ADV)passedaresolutiontoapproveitsliquidationbytransferreditsbusinesstoADVandregistered itsliquidationwiththeMinistryofCommerceon28October2010 •InNovember,TreasuryStockProgramwhichhadrunin2007wasdueon22November2010.TheBoard Meeting of the Company passed a resolution to approved not to resale the shares due to CSLhadadequate freecash flows forany investment, repayment loananddividendpayment. Tocomplywiththeregulations,theCompanyhadtowrittenoffitsrepurchasedshares(amounting of51,700,000sharesatparvalue0.25bahtpersharewhichareequalto8.04%ofthepaid-up capitalbeforecancellation)andregistereditscapitaldecreasewiththeMinistryofCommerceon 26November2010.Asaresultofwritingofftheseshares,thesharecapitaloftheCompanyhad changetobe590.99millionshares(parvalueofBaht0.25each)orBaht147.75million


General Information of the CompanyCS LoxInfo Public Company Limited (CSL)NatureofBusiness Internetdatacenterservices,Internetaccessandsatellite uplink-downlinkServicefordomesticandinternational communicationsHeadOffice 414PhaholyothinRoad,Samsennai,Phayathai,Bangkok10400BranchOffice 90CyberWorldTowerA,17th-20thFloor,RatchadapisekRoad, HuaiKhwang,HuaiKhwang,Bangkok,10310RegistrationNo. 0107546000377Telephone 022638000Fax 022638132HomePage www.csloxinfo.comRegisteredCapital 619,914,436sharesParValue Baht0.25Paid-upCapital Baht148,185,918.75

General Information of SubsidiariesTeleinfo Media Public Company Limited (TMC)NatureofBusiness PublishingtelephonedirectoriesandadvertisingHeadOffice 414PhaholyothinRoad,Samsennai,Phayathai,Bangkok10400BranchOffice1 2028Rim-Tang-Rot-FaiSaiPaknumRoad,Phakhanong, Klongtoey,BangkokBranchOffice2 25th-28thFloor,VanitBldg.2,1126/2NewPhetchaburiRoad, Makkasan,Ratchathewi,Bangkok10400RegistrationNo. 0107548000609Telephone 022628888Fax 022628899HomePage www.teleinfomedia.netRegisteredCapital 17,353,400sharesParValue Baht10Paid-upCapital Baht173,534,000

PercentofInvestmentofCSL 100.00%

General Information of the Company and Subsidiaries


AD Venture Public Company Limited (ADV)NatureofBusiness Providerofmobilecontents,communityportalservices,andother internet-relatedbusinessesHeadOffice 414PhaholyothinRoad,Samsennai,Phayathai,Bangkok10400BranchOffice Room2101,21stFloor,1126/2VanitBldg.2,NewPhetchaburiRoad, Makkasan,Ratchathewi,Bangkok10400RegistrationNo. 0105542060659Telephone 022628888Fax 022628899HomePage www.shinee.comRegisteredCapital 1,074,813sharesParValue Baht10Paid-upCapital Baht10,748,130PercentofInvestmentofCSL 100.00%

Shineedotcom Company Limited (SHINEE)OnOctober28,2010,ShineedotcomCompanyLimited(SHINEE)hadregistereditsliquidationwiththeMOC,andtheprocessofliquidationhadbeencompletedonJanuary5,2011.HeadOffice 414PhaholyothinRoad,Samsennai,Phayathai,Bangkok10400BranchOffice Room2101,21stFloor,1126/2VanitBldg.2,NewPhetchaburiRoad, Makkasan,Ratchathewi,Bangkok10400RegistrationNo. 0105542083071Telephone 022628888Fax 022628899RegisteredCapital 4,260,800sharesParValue Baht10Paid-upCapital Baht42,608,000PercentofInvestmentofADV 100.00%


HunsaDotCom Company Limited (HUNSA)NatureofBusiness Providerofmobilecontents,communityportalservices,andother internet-relatedbusinessesHeadOffice 414PhaholyothinRoad,Samsennai,Phayathai,Bangkok10400BranchOffice Room2101,21stFloor,1126/2VanitBldg.2,NewPhetchaburiRoad, Makkasan,Ratchathewi,Bangkok10400RegistrationNo. 0505542003082Telephone 022628888Fax 022628899HomePage www.hunsa.comRegisteredCapital 800,000sharesParValue Baht10Paid-upCapital Baht8,000,000PercentofInvestmentofADV 100.00%

Watta Classifieds Company Limited (WATTA)NatureofBusiness Providessub-advertisementandclassifiedservicesinitsown publicationspublishesandsellsvariouspublicationssuchas newspapers,magazines,pocketbooksandothers.HeadOffice 71/30BorommaratchachonnaniRoad,Arun-amarin, Bangkoknoi,Bangkok10700BranchOffice 71/36BorommaratchachonnaniRoad,Arun-amarin, Bangkoknoi,Bangkok10700RegistrationNo. 0105542015891Telephone 024228000Fax 024228032HomePage www.watta.co.thRegisteredCapital 200,000sharesParValue Baht100Paid-upCapital Baht20,000,000PercentofInvestmentofCSL 60.00%


Major ShareholdersList of the first top 10 major shareholders Thefirsttop10shareholdersontheclosingdateoftheregistrationbookasofAugust25,2010areasfollows:

*TreasuryStockoftheCompany51,700,000shares

Source:MajorShareholders’reportasofAugust25,2010preparedbyThailandSecuritiesDepositoryCo.,Ltd.

Theinvestorscanfindformoreinformationinwebsite:www.set.or.thbeforeAnnualGeneralShareholdersMeetingfortheyear2011date.

AsofJanuary12,2011,theshareholdingstructureofShinCorporationPlc.isasfollows:

Mr. Surin Upatkoon

Cypress Holdings Ltd.(Temasek Holdings)

Mr. Pong Sarasin

Mr. Suphadej Poonpipat

Cypress Holdings Ltd.(Temasek Holdings)

The Siam CommercialBank Plc.

Kularb Kaew Co., Ltd.

Aspen Holdings Ltd.(Temasek Holdings)

Cedar Holdings Ltd.

Shin Corporation Plc.

68.00%

29.90%

1.27%

0.82%

48.99% 5.78% 45.22%

41.68% 54.43%

No. Name No. of Shares Percentage of Investment

1. DTVSERVICECOMPANYLIMITED 250,099,990 38.96

2. SINGAPORETELECOMMUNICATIONLIMITED 84,057,030 13.09

3. CSLOXINFOPUBLICCOMPANYLIMITED* 51,700,000 8.05

4. THAINVDRCOMPANYLIMITED 25,623,600 3.99

5. MR.THAVEEASSAVASOPEE 8,841,500 1.38

6. MRS.JARATSRIPONGPIRODOM 5,235,100 0.82

7. MR.ANANTRAVEESANGSOON 5,199,000 0.81

8. CATTELECOMPLC 4,900,000 0.76

9. MR.ANANTKAEWRUAMVONGS 4,384,843 0.68

10. DR.CHATCHAWINJAROENRATCHAPAK 4,000,000 0.62

Total 444,041,063 69.16

Shin Corporation Plc 1), 2)

Advanced Info Service Plc. 2)

Digital Phone Co., Ltd.

Advanced Internet Revolution Co., Ltd.

Advanced Datanetwork Communications Co., Ltd.

Wireless Device Supply Co., Ltd.

Advanced Contact Center Co., Ltd.

Advanced Mpay Co., Ltd.

Advanced Magic Card Co., Ltd.

AIN GlobalComm Co., Ltd.

Super Broadband Network Co., Ltd.

Advanced Wireless Network Co., Ltd.

Mobile Broadband Business Co., Ltd.

Advanced Mobile Broadband Co., Ltd.

MIMO Tech Co., Ltd.

Fax Lite Co., Ltd.

Clearing House for Number Portability Co., Ltd.

Bridge Mobile Pte. Ltd.

Thaicom Plc 2)

DTV Service Co., Ltd.

CS LoxInfo Plc. 2)

Teleinfo Media Plc.

AD Venture Plc. 1)

Hunsadotcom Co., Ltd.

Watta Classifieds Co., Ltd.

N.T.U. (Thailand) Ltd.

Shenington Investments Pte Ltd. 1)

Mfone Co., Ltd.

Lao Telecommunications Co., Ltd.

IPSTAR Co., Ltd.

IPSTAR Australia Pty Ltd.

IPSTAR New Zealand Ltd.

Star Nucleus Co., Ltd.

Spacecode LLC

IPSTAR International Pte. Ltd.

IPSTAR Global Services Ltd.

Cambodian DTV Network Ltd.

ITV Plc. 2)

Artware Media Co., Ltd.

Matchbox Co., Ltd.

I.T. Applications and Services Co., Ltd.

42.55% 41.14% 52.92%

99.99%

99.99%

99.99%

99.96%

42.18%

99.99%

99.94%

70.00%

70.00%

100%

100%

100%

99.99%

60.00%

88.52%

99.99%

98.55%

51.00% 51.00%

100%

100%

100%

49.00%

99.99%

99.99%

99.99%

99.99%

99.99%

99.99%

99.99%

99.99%

99.97%

99.99%

20.00%

10.00%

99.99%

99.99%

1) Holding Company

2) Listed Company on the Stock Exchange of Thailand


INVESTMENT STRUCTURE OF SHIN GROUP As of January 5, 2011

Shin Corporation Plc 1), 2)

Advanced Info Service Plc. 2)

Digital Phone Co., Ltd.

Advanced Internet Revolution Co., Ltd.

Advanced Datanetwork Communications Co., Ltd.

Wireless Device Supply Co., Ltd.

Advanced Contact Center Co., Ltd.

Advanced Mpay Co., Ltd.

Advanced Magic Card Co., Ltd.

AIN GlobalComm Co., Ltd.

Super Broadband Network Co., Ltd.

Advanced Wireless Network Co., Ltd.

Mobile Broadband Business Co., Ltd.

Advanced Mobile Broadband Co., Ltd.

MIMO Tech Co., Ltd.

Fax Lite Co., Ltd.

Clearing House for Number Portability Co., Ltd.

Bridge Mobile Pte. Ltd.

Thaicom Plc 2)

DTV Service Co., Ltd.

CS LoxInfo Plc. 2)

Teleinfo Media Plc.

AD Venture Plc. 1)

Hunsadotcom Co., Ltd.

Watta Classifieds Co., Ltd.

N.T.U. (Thailand) Ltd.

Shenington Investments Pte Ltd. 1)

Mfone Co., Ltd.

Lao Telecommunications Co., Ltd.

IPSTAR Co., Ltd.

IPSTAR Australia Pty Ltd.

IPSTAR New Zealand Ltd.

Star Nucleus Co., Ltd.

Spacecode LLC

IPSTAR International Pte. Ltd.

IPSTAR Global Services Ltd.

Cambodian DTV Network Ltd.

ITV Plc. 2)

Artware Media Co., Ltd.

Matchbox Co., Ltd.

I.T. Applications and Services Co., Ltd.

42.55% 41.14% 52.92%

99.99%

99.99%

99.99%

99.96%

42.18%

99.99%

99.94%

70.00%

70.00%

100%

100%

100%

99.99%

60.00%

88.52%

99.99%

98.55%

51.00% 51.00%

100%

100%

100%

49.00%

99.99%

99.99%

99.99%

99.99%

99.99%

99.99%

99.99%

99.99%

99.97%

99.99%

20.00%

10.00%

99.99%

99.99%

1) Holding Company

2) Listed Company on the Stock Exchange of Thailand



Corporate GovernanceCG Policy TheCompanybelievesthatleadershipofavisionaryandresponsibleBoardofDirectors,withaccountabilitytostakeholders,thatcanmotivateandguidemanagement,usingasoundmanagementsystemthatutilizesinternalcontroltobalancebusinessprioritiesandoperationstransparency,whilerespectingtherightsandequitabletreatmentofallshareholders,aretheessentialfactorsinmaximizinglongtermshareholdersvalue.Tothisend,theBoardhasestablishedagoodCGPolicythataddressesfivekeyareas: 1.Board’sstructure,composition,rolesandresponsibilities 2.TherightsandequitabletreatmentofShareholdersandtheRolesofStakeholders 3.InformationDisclosureandTransparency 4.InternalControlandRiskManagement 5.CodeofConduct

Since2005,theBoardhassubscribedtothegrowingimportanceofCGandhassinceoverseentheimplementationofappropriatepracticestoenhanceCGawarenessandstandardwithintheCompany.IneveryBoardmeetinginMarch,theBoardreviewstheCGpolicyoftheCompanytoensurethatitstayscurrentandatanacceptablestandardinthecontextofitsbusinessandoperations. TheBoard,initsmeetingno.3/2010inMarch2010,reviewedandapprovedcertainamendmenttotheCGpolicyandalsowasoftheopinionthattheCompanyshouldprovidechannelforshareholdersandstakeholderstocontact/complainmatterthatmaycausetroubletotheBoard.Therefore,theCompanyprovidedthecontactchannelatwww.csloxinfo.com>investor>boardofdirectors. Tothisend,theCGpolicywasreviewedbytheBoardintheBoardMeetingNo.3/2011onMarch15,2011.InthatMeeting,theBoardalsoapprovedanotherCGenhancementintheareaofthecodeofconductbyprovidingtheCompanywithaframeworkthatisinlinewiththecompanyparent.

Chapter 1: Board of Directors1. Leadership and Vision TheBoardpositionsCSLoxInfoPublicCompanyLimited(CSL),aCompanywithinShinCorporationGroup,tobealeadingThaicompany,recognizedbydomesticandinternationalinvestorsasonewithprovensuccessinitsbusinessmissionwhichissupportedbystrongmanagement,competentstaffandstateofthearttechnology. TheBoardmembersexerciseleadership,visionandindependenceinmakingdecisions,andareresponsibleforthestrategicdirectionandgovernanceoftheCompanyincreatingvalueforitsstakeholdersthroughsoundandsustainablebusinessperformance.Tothisend,theduties,rolesandresponsibilitiesoftheChairmanoftheBoard,theChairmanoftheExecutiveCommitteeandtheManagingDirectorareclearlysegregated. TheBoardapprovestheannualbusinessplansproposedbymanagementoftheCompanyanditssubsidiariesbyreferencetostatedbusinessdirection,assessmentofthetargetmarketconditionsanddiscussionswithkeymanagementpersonnel.ImplementationoftheapprovedbusinessplanbymanagementisguidedandoverseenbytheExecutiveCommittee,asub-committeeoftheBoard.KeyoperatingresultsandinformationareprovidedmonthlytoeachmemberoftheBoardwhichmeetsquarterlytoreviewfinancialperformanceandapprovesthefinancialstatementsforcommunicationtotheinvestingpublic. TheThaieconomy,asexpected,recoveredin2010.However,thebusinessenvironmentremainedchallengingthroughcompetitivepricingandtechnologychange.KeybusinessandoperationalrisksareidentifiedandaddressedattheRiskManagementCommitteelevelintheCompanyandkeysubsidiaries.TheBoardprovidesoversightastohowstrategicandbusinessweaknesses,particularlyintheareasofshrinkingmarketshareandalternativedistributionplatform,areaddressed,andthroughregularbusinessesperformanceandfinancialreviews,ensurethatbusinessfocusstayswithindefinedstrategicdirection. Inaddition,theBoardensuresthattheCompanyconductsitsbusinesswithinthestatutorylegalandregulatoryframeworkNon-executiveDirectorsmeetingtakesplaceatleastonceayeartoreceivefeedbackonCompany


performanceandidentifyareasofimprovement.

2. Composition of the Board of Directors, the Appointment, and its Independence TheBoardconsistsofninequalifiedandexperienceddirectorsintherelevantfields,includingtelecommunications,legal,accounting,aswellasfinanceandinvestmentsmanagement.FourBoardmembersarerepresentativesoftwomajorshareholders;oneisrepresentativeofCATTelecomPlc.servingonbehalfofthebusinesslicensegrantor;fourareindependentdirectors,whotogetheraccountformorethanonethirdoftheBoard.TheBoardcompositionisasfollows:

*ThedirectorwithknowledgeandexperienceinreviewingfinancialstatementsoftheCompanywithCPANo.3692.Currently,(nospacinghere)

heisAssoc.Prof.Dr.atFacultyofCommerceandAccountancy,ThammasatUniversity.Hehasbeeninthefieldoffinanceandaccountingformore

than10years,andcompetentenoughtoreviewthefinancialstatements.

**BeingappointedbytheBoardMeetingNo.3/2010onMarch12,2010asDirectortoreplaceMr.SomkiatKulatumyothinwhoresignedwitheffect

fromFebruary22,2010.

Company Secretary:Mrs.SuwannaJanesawatpong,detailsofherprofileandqualificationsareshownonpage80.The Authorized Directors:Mr.ArakChonlatanonorMr.YongsitRojsrivichaikulorMr.TanaditCharoenchanorMr.WongTuanKengAlan,altogethertwooutoffourpersonsjointlysignwithCompanyseal.

Directors Nomination and Appointment Process TheBoardempowersNominationandCGCommittee(NCG)todeterminestandardsandothercriteriainselectingaqualifiedpersontoactasadirectoroftheCompanyundertheCompany’sArticlesofAssociationandrelevantlaws,aswellastonominatesuchaqualifiedpersontobeadirectoroftheCompanywheretheofficeisvacantornewseatiscreatedfollowingshareholdersapproval.

Name Position Numbers of Shares holding

(as at Dec 31, 2010)

1. Prof. Wongkulpat Snidvongs na Ayudhya, M.D.

Independent Director/Chairman of the Board -0-

2. Mr. Prathueng Srirodbang Independent Director/Chairman of the Audit Committee/ Chairman of the Nomination and CG Committee (NCG)

-0-

3. Mr. Gan Hui Beng Independent Director/Member of the Audit Committee/ Member of the Remuneration Committee

-0-

4. Dr. Sillapaporn Srijunpetch* Independent Director/Member of the Audit Committee/Member of the NCG Committee

-0-

5. Mr. Hansa Chevapruke** Director/Representative of CAT Telecom Plc. -0-

6. Mr. Wong Tuan Keng Alan Director/Member of the Executive Committee/Member of the Remuneration Committee/ Member of the NCG Committee/Representative of major shareholder

-0-

7. Mr. Arak Chonlatanon Director/Chairman of the Executive Committee/ Chairman of the Remuneration Committee/Member of the NCG Committee/Representative of major shareholder

-0-

8. Mr. Yongsit Rojsrivichaikul Director/Member of the Executive Committee/ Representativeof major shareholder

-0-

9. Mr. Tanadit Charoenchan Director/Member of the Executive Committee/ Representativeof major shareholder

-0-


InDecember2008,theBoardapprovedtheCGpolicychangetoallowqualifiedminorityshareholdersoftheCompanytonominateperson(s)tobeconsideredforelectionasdirector(s)oftheCompanyintheshareholdersmeeting.Aproposalwasreceivedinlate2009.However,itdidnotmeettheproposalsubmissioncriteriaoftheCompanyandthedecisionwascommunicatedattheAnnualGeneralShareholdersMeeting(AGM)2010. Innominatingacandidateforthedirectorposition,theNCGconsiderstheeducationalbackgroundandprofessionalexperienceofeachnominatedcandidatebeforemakingrecommendationsupportedbyrelevantinformationtotheBoardorShareholdersMeetingforconsiderationanddecision. ItisalsothepolicyoftheCompanythatineveryAGMmeeting,onethirdofthedirectorsshallresignfromtheirpositionsbutareeligibletoseekre-election.Incasethatnumberofthedirectorscannotbedividedintothree,theclosesttoonethirdofthedirectorsshallresignfromtheirpositions.InthefirstandsecondyearfollowingthelistingoftheCompanyontheStockExchangeofThailand,thedirectorsrequiredtoresignweredeterminedfromthedrawingoflots.Insubsequentyears,thelongestservingdirectorshadtoresignbutwereeligibletoseekre-electiontoremainontheBoard. Intheeventtheofficeofdirectorisvacantduetoreasonsotherthantherotationalschemedescribedabove,theBoardshallelectapersonwhoisqualifiedandhasnoprohibitedcharacteristicsinaccordancewithClause68ofthePublicCompanyAct,B.E.2535.ThesuccessfulcandidatewillreplacethevacateddirectorintheBoardmeetingfollowingthecandidate’selection.Unlesstheremainingtenureofthedirectorvacatingofficeislessthantwomonths,adirectorwhohasbeenelectedasareplacementshallretainthispositiononlyuptotheremainingtenureofsuchprecedingdirector. AsstipulatedintheCompany’sArticlesofAssociation,theshareholdersmeetingshallelectdirectorsunderthefollowingrulesandprocedures. 1. Allshareholdershavevotingrightsequivalenttothenumberofsharesbeingheld. 2. Eachshareholdermayuseallvotessetforthin(1)toelectoneormoredirectors.Incaseofelectionofa numberofdirectors,thosevotesmaynotbedividedinanyproportionforanyparticulardirector. 3. Thosewhoreceivethehighestrespectivevotesshallbeelectedasdirectorsinanumberequaltothoseto beelectedatsuchameeting.Incasesoftiedvotescast,whichwouldresultinthenumberofdirectors greaterthanthatpermittedforthetimebeing,thepresidingchairmanshallhaveacastingvote. TheCompanyhasnotdeterminedthemaximumnumberofoccasionsadirectorcanbere-elected,orhis/herage,butwilltakeintoconsiderationhis/hertime,capabilityandknowledgedevotedtotheCompanyinperformingduties.Anindependentdirector,however,shallnotservethedirectorshipformorethanthreeconsecutivetermsoratotalofnineyears.

Qualifications of the Board of Directors DirectorsoftheCompanyhavequalificationsandcharacteristicsasspecifiedintherelevantlaws.Theyhaveknowledge,capabilityandethicsincarryingoutbusinessandsufficienttimetodevotetheirknowledgeandcapabilitiesinperformingdutiesfortheCompany.ItisacceptableforthemtobedirectorsinothercompaniesaslongassuchdirectorshipdoesnothampertheirperformanceincarryingoutdutiesattheCompany. TheBoardalsoencouragesthedirectorstoattendtrainingclassesforrolesandresponsibilitiesofbeingadirector,e.g.,DAP,DCP,etc.inordertohaveathoroughunderstandingoftheirroles.TheprofileoftheCompanyanditssubsidiaries,relevantrulesandregulations,andtheDirector’sHandbookarenormallyprovidedtothedirectors,especiallyfornewappointees.BusinessenvironmentupdatesoftheCompanyanditssubsidiaries,e.g.,marketsituation,technology,lawsandregulations,etc.arealsomadetotheBoardregularly.ThisshouldenabletheBoardtohavesufficientinformation,knowledgeandunderstandingaboutthebusinessoftheCompany,aswellasthemostcurrentrolesandresponsibilitiesofbeingadirector.TheBoardalsoencouragesthedirectorstohavecontinuingeducationprogramstoenablethemtoperformtheirdutieseffectivelyincludingcorporategovernancematters.

Independence and Definition of the Independent Directors TheCompanydefines“IndependentDirector”intheCompany’sCGpolicyasadirectorwhomeetsallthe


qualificationswithregardstoindependence,inaccordancewiththeguidelinesofCapitalMarketSupervisoryBoard,SEC,and/orSET.He/Sheshallbeabletoequitablysafeguardtheinterestsofshareholdersandpreventaconflictofinterest.He/SheshallalsobeabletogiveindependentopinionsintheBoardand/orSub-Committeemeetings.Detailsofhis/herqualificationsareasfollow: 1.Beingadirectorwhoholdssharesofnotmorethan0.5%ofvotingsharesoftheCompany,itsparentcompanies,subsidiaries,affiliates,orajuristicpersonwhichmayhaveconflictofinterest.Sharesheldbyhis/herrelatedpersonsshallbeincluded. 2.BeingadirectorwhodoesordidnottakepartinthemanagementoftheCompany,itsparentcompanies,subsidiaries,affiliates,samelevelsubsidiaries,orajuristicpersonwhichmayhaveconflictofinterest.Thisshallincludebeinganemployee,orconsultantwhoreceivesaregularsalaryfromthesaidrelatedentities.However,thedirectorcouldbedeemedindependentifhe/shehadvacatedtheofficeforlongerthantwoyearsbeforebeingappointedasanindependentdirector. 3.Beingadirectorwhoisnotarelatedpersontotheexecutives,majorshareholder(s)oftheCompany,includingthecurrentorexpectedmanagementorcontrollingpersonsoftheCompanyorsubsidiaries. 4.Beingadirectorwhohasnobenefitsorinterests,directlyorindirectly,intermsoffinancialandmanagementoftheCompany,relatedcompanies,subsidiaries,affiliates,samelevelsubsidiaries,orconflictingentities.However,thiswouldbeexemptedinthecasethatthedirectorhasnobenefitsorinterestsinsuchmannerforaperiodoflongerthantwoyearpriortotheappointmentasadirector.Thefollowingbusinessrelationshipshallbetakenintoconsideration. 4.1Conductingofnormalbusinesstransactions,rent,offeringforrentingproperty,andthetransactionsabout assets,services,offeringorreceivingfinancialassistancebylending,guarantee,orothersimilarpackages, whichresulttheCompanyorthecounterpartytohaveliabilitiesofmorethan3%ofnettangibleassetsof theCompanyorBaht20million,whicheverislower.Theliabilitiesthathappenedduringtheperiodofone yearbeforethebeginningofthebusinessrelationshipshallalsobeincludedinthecalculationofthe transaction. 4.2BeingoreverbeentheauditoroftheCompanyorrelatedcompanies,andnotbeingthemajorshareholder, director,management,partnerofthatauditfirm. 4.3Beingoreverbeenaprofessionaladvisor,legaladvisor,financialadvisorfortheCompanyorrelated companies,withthefeeofhigherthanBaht2millionperyear.Incasethebindingadvisorisajuristicperson, thisshallmeanthathe/sheisnotthemajorshareholder,director,management,partnerofsuchadvisingfirm. Foroccasionalnecessityandappropriateevent,duringtheofficeoftheindependentdirector,he/shemayhavebusinessrelationshipmorethantheabovedeterminedlevel.However,aconsensusapprovalresolution,priortotheevent,shallbeobtainedfromtheBoard.Suchrelationshipofthedirectorsshallbedisclosedasrequiredbylaw. 5.BeingadirectorwhoisnotappointedasarepresentativetosafeguardinterestsoftheCompany’sdirectors,majorshareholder(s)orshareholderswhoarerelatedtothemajorshareholder(s)oftheCompany. 6.Beingadirectorwhoisabletoperformduties,giveopinionsorreportontheresultoftheassignmentsrequestedbytheBoardwithnopressuresduetocircumstancesorcontrolsofthemanagement,majorshareholder(s)oftheCompany,includingtheirrelatedpersonsorcloserelatives.TheBoardcan,wherenecessary,assignindependentdirectorstomakecollectivedecisionabouttheoperationsoftheCompany,parentcompany,subsidiaries,affiliates,sameclasssubsidiaries,orconflictingentities.

3. Chairman of the Board and Chairman of the Executive Committee TheCompanyhasapolicythattheChairmanoftheBoardandtheChairmanoftheExecutiveCommitteeshouldbecapableandpossessappropriateexperienceandqualifications.Theyshallnotbethesameperson,inordertobalancethepowerbetweendirectionandmanagementfunctions.TheresponsibilitiesoftheChairmanoftheBoardandtheChairmanoftheExecutiveCommitteearespecifiedasfollows: • Chairman of the Boardisanon-executiveDirector,hasresponsibilityastheleaderofthedirectorsindirecting andmonitoringtheperformanceoftheExecutiveCommitteeandtheotherBoardappointedsub-committees inachievingitsgoalsandobjectives.HealsochairstheBoardmeetingandtheshareholdersmeeting.


Currently,ourChairmanoftheBoardisanindependentdirector. • Chairman of the Executive CommitteetakesresponsibilityastheleaderoftheexecutivesoftheCompany, isresponsibletotheBoardforsupervisingthemanagementoftheCompanytoachieveplannedassignment.

4. Authorities, Scope of Duties, and Responsibilities of the Board Majorauthorities,duties,andresponsibilitiesoftheBoardareasfollows: • Tocarryoutdutiesinaccordancewiththelaws,theobjectives,theArticlesofAssociationoftheCompany, andtheresolutionsoftheshareholders’meetingingoodfaithandwithcaretopreservetheinterestsofthe Company • Todeterminevision,policy,anddirectionoftheCompany,aswellastooverseeandguidethemanagement executivestobeinlinewiththepolicyeffectivelyandefficientlyformaximizingcorporatevalueand shareholders’wealth • Toconsidertoapproveorproposetoshareholdertoapprove,wherethecasemaybe,themajortransactions aboutbusinessoperationsoftheCompanyanditssubsidiaries,suchasnewinvestment,assetacquisitionor disposition,andothertransactionsspecifiedbythelaw • ToapproveoragreetotherelatedtransactionsbetweentheCompanyanditssubsidiariesincompliance withtherelevantnotifications,regulationsandguidelinesoftheStockExchangeofThailand • Toarrangetohaveareliableaccountingsystem,financialreports,auditing,aswellasoverseetheevaluation processforanappropriate,effective,andefficientinternalcontrol,internalauditing,riskmanagement, financialreporting,andmonitoring • TooverseefornothavingacaseofconflictofinterestsbetweentheconcernedpersonsoftheCompany, aswellastoapprovetheConnectedtransactionsandConflictingtransactions • TogoverntheCompanytocarryoutthebusinessethicallyandinlinewiththeprincipleofgoodCorporate Governance • ToreviewtheCompany’sCGPolicyandassessduecomplianceatleastannually • ToconductBoardappraisal,asagroup,annually • ToappointordelegateanypowertoanyotherpersonstoconducttheCompany’sbusinesssubjecttothe controlofandwithinthetimeasmaybespecifiedbytheBoard,wherebysuchappointmentordelegation ofpowermay,atanytime,becanceled,revoked,withdrawnoramended.Providedthatthesaidappointment ordelegationofpowershallnotbemadeinthemannerthattheBoardorthepersonappointedordelegated thenbeabletoapproveanytransactiontobeenteredintobetweentheBoard,thepersonappointed ordelegatedbytheBoard,oranypersonwhomayhaveconflictofinterestoranyotherbenefits(asstipulated bytheOfficeoftheSecuritiesandExchangeCommission)andtheCompanyortheCompany’ssubsidiaries, unlesstheapprovalforsuchtransactionsisincompliancewiththepolicyandrulesalreadyapprovedbytheBoard • TodetermineeachdirectorandexecutivetohavedutyinpreparingandsubmittingtheReportofSecurities HoldingintheCompanybyhimself(herself),his(her)spouse,his(her)immaturechildren,totheSEC,byusing the59-1and59-2form,andbythetimeframestipulatedintheNotificationoftheSECno.SorJor14/2540

5. The Sub-Committees TheBoardhasappointedfoursub-committees,eachwithaspecificcharter,toassisttheBoardinfocusingonkeyareasundertheBoard’sresponsibilities. 5.1AuditCommittee 5.2RemunerationCommittee 5.3NominationandCorporateGovernanceCommittee 5.4ExecutiveCommittee


5.1 Audit Committee (AC)

TheACconsistsofthreeindependentdirectors.TheonesqualifiedandexperiencedinthefinancialandaccountingfieldsareMr.GanHuiBengandDr.SillapapornSrijunpetch.Mr.PrathuengSrirodbangisqualifiedandexperiencedinthelegalfield.EverymemberhasqualificationsasspecifiedundertheguidelineoftheCapitalMarketSupervisoryBoard,theSEC.aswellasmeetstherequirementsofanindependentdirectorasdefinedintheCompany’sCGpolicy. AnAChasthesametermasthedirectorshipposition.ThetermoftheACmembershipcanbeextendedviare-electionbutfornomorethannineconsecutiveyears. In2008,theACCharterwasrevisedandapprovedtobeinlinewiththeamendmentonqualificationsandscopeofdutiesoftheACstipulatedbytheCapitalMarketSupervisoryBoard,SEC,andSETissuedinthesameyear.TherevisedACCharterisasfollows: • TocarryoutthereviewoftheCompany’sfinancialstatementswithmanagementandtheexternalauditors toensurethattheyfairlypresentthefinancialpositionoftheCompanyandthattheyarepreparedin accordancewithgenerallyacceptedaccountingprinciples • TogiverecommendationtotheBoardaboutthechangestotheCompany’saccountingpoliciesandfinancial authoritiesdelegatedtoEXCOMandManagingDirector • ToensurethattheCompanyhasappropriateandeffectiveinternalcontrolsystemandinternalauditing process • TocarryoutthereviewtoensurecompliancewithSecuritiesandExchangeActs,regulationsoftheStock ExchangeofThailandandanyotherrelevantlaws • Toconsider,select,andproposeindependentperson(s)tobeappointedasCompany’sexternalauditor(s) andproposeauditfeesoftheCompany’sexternalauditortotheBoard,aswellasapproveitsauditplan andmeetprivatelywithexternalauditoratleastonceayearwithoutinvolvingmanagement • Toreviewindependenceoftheexternalauditor,establishpolicyfortheapprovalofnon-auditservicesand makerecommendations • ToreviewtheworkoftheRiskManagementCommitteeoftheCompany • Toreviewandprovideopiniononmaterialconnectedtransactionsorthetransactionswhichmayleadto conflictofinteresttobeincompliancewiththerelevantlawandregulations,aswellasforaccurateand completedisclosure • ToreviewandgiveopinionontheperformanceoftheOfficeofInternalAuditandcoordinateworkwiththe Company’sexternalauditors • ToconsiderindependenceoftheOfficeofInternalAudit,agreewiththeappointment,transfer,dismissal, andappraisaloftheChiefofInternalAuditOffice • ToconsiderandapprovetheInternalAuditCharter,annualinternalauditplan,budgetandmanpowerof theOfficeofInternalAuditandtheadequacyoftheinternalauditfunction • Toensureallnecessaryassistanceandcooperationrequiredbytheexternalandinternalauditorsareprovided bymanagement • ToreporttheactivitiesoftheAuditCommitteeactivitiestotheBoardofDirectorseveryquarteratminimum • TopreparetheAuditCommitteereportfordisclosureintheCompany’sannualreportandform56-1. ThereportshallbesignedbyChairmanoftheAuditCommitteeandshall,atminimum,containthefollowing opinionsandotherinformation. (a)Opinionaboutcompleteness,accuracy,andreliabilityoftheFinancialStatements

Name Position

1. Mr. Prathueng Srirodbang Chairman of the AC/Independent Director

2. Mr. Gan Hui Beng Member of the AC/Independent Director

3. Dr. Sillapaporn Srijunpetch Member of the AC/Independent Director


(b)Opinionaboutadequacyofinternalcontrolsystem (c)OpinionaboutcompliancewithSECActs,regulationsoftheSET,anyotherrelevantlaws (d)Opinionaboutappropriatenessoftheexternalauditor (e)Opinionabouttransactionswhichmayleadtoconflictofinterest (f) NumberofAuditCommitteeMeetingsandnumberofmeetingattendanceofeachAuditCommittee member (g)OverallopinionorobservationsfromworkingaccordingtotheAuditCommitteeCharter (h)Othermattersthatshareholdersandinvestorsshouldknow,underthescopeofdutiesandresponsibilities asassignedbytheBoard • Incarryingout theAuditCommittee’sduties, if theAuditCommitteefindsorsuspects the followingcaseswhichmaycausesignificantimpacttothefinancialstatusandperformanceofthe Company,theAuditCommitteeshallreportthecasetotheBoardforactiontobetakeninthe time-frameagreedtobytheAuditCommittee 1)Transactionswhichmayleadtoconflictofinterest 2)Fraud,abnormality,orsignificantdeficienciesininternalcontrolsystem 3)BreachesoftheSECActs,regulationsoftheSET,anyotherrelevantlaws Incasethatthedirectorsormanagementmembersdonottakeactionintime,anAuditCommitteemember mayreportthecasetotheSECandSET. • Toreviewthescopeofduties,responsibilities,andtoconductAuditCommitteeperformanceself-assessment onayearlybasis • Tohavefullaccesstoandcooperationofmanagement • Tohavethepowertoinvitemembersofthemanagement,officersandemployeesoftheCompanyor externalpartiestogivestatements,toattendthemeetingandtodelivernecessarydocuments • Tohavedirectaccesstotheexternalauditorsintheinvestigationofanymatterwithinitstermsof reference • Tohavethepowertoengageconsultant(s)orindependentperson(s)toprovideopinionoradviceas necessary,inaccordancewiththeCompany’sregulations,andwithexpense(withnobudget provided)undertheapprovalauthorityoftheManagingDirector;and • TocarryoutanyotherworkdesignatedbytheBoardofDirectorsandagreedtobytheAudit Committee In2010,theACmet5timestocarryoutitsdutiesandresponsibilities.TheACself-assessmentfor2010wasconducted,collectively,toreviewtheactualperformanceagainsttheCharteroftheACandBestPractice.TheresultswerereportedtotheBoardinBoardMeetingNo.2/2011onFebruary16,2011.TheresultsshowedthattheperformanceoftheACwasconsistentwithboththeCharteroftheACandBestPractice.

5.2 Remuneration Committee (RC)

TheRCconsistsofthreedirectors.Twoarerepresentativesofthemajorshareholders,andoneisanindependentdirector.Thescopeofdutiesandresponsibilitiesareasfollows: • Toappropriatelydeterminenecessaryremuneration,bothmonetaryandnon-monetary,annuallyinorderto providenecessaryincentivesandretaintheBoard,Sub-CommitteesandSeniorExecutivesoftheCompany • TopreparepoliciesandcriteriastodetermineremunerationoftheBoardandSeniorExecutives,forapproval

Name Position

1. Mr. Arak Chonlatanon Chairman of the RC

2. Mr. Gan Hui Beng Member of the RC/Independent Director

3. Mr. Wong Tuan Keng Alan Member of the RC


bytheShareholdersMeeting,and/ortheBoard,dependingoneachcase • ToreporttotheBoard,andberesponsibleforprovidingexplanationsandclarificationsaboutremuneration oftheBoardandseniorexecutivesinShareholdersMeetings • Toreportontheremunerationpolicies,rationaleandobjectives,aswellastomakedisclosuresintheannual report • ToundertakeanyotherworkasassignedbytheBoard In2010,theRCmet3timestoconsiderandapprovetheremunerationsforindependentdirectorsandexternaldirectors.

5.3 Nomination and Corporate Governance Committee (NCG)

BasedontheCharteroftheNCG,thecommitteeshallbecomposedofatleastthreedirectorswithatleasthalfofthecommitteebeingnon-executivedirectors. PresentlytheNCGconsistsoffourdirectors.Twoarerepresentativesofmajorshareholders;theothertwoareindependentdirectors.Thescopeofdutiesandresponsibilities,basedontheNCGCharterdatedMay13,2008,areasfollows: • ReviewwiththeBoard,thecriteria,minimumqualifications,necessaryqualitiesorskillsforbeingaboard memberassetforthintheCompany’sCGPolicy,onayearlybasis • ReviewandmakerecommendationstotheBoard,thesize,structure,composition,term,processesand practicesoftheBoardandtheBoard’ssub-committees • Identify,evaluateandrecruitindividualsqualifiedforbeingboardmembers • ConsiderthenominationsfordirectorsproposedbytheCompany’sshareholders • RecommendtotheBoard,thenominationsfordirectorsproposedforelectionattheBoardorShareholders’ meeting,tofillvacanciesorfornewly-createddirectorships • RecommendtotheBoard,thedirectorstobenominatedforappointmentasExecutiveCommitteemembers, othersub-committeesmembers,includingChairpersonoftheBoard • ConsiderandnominatetheCompany’srepresentativestositontheboardsoftheCompany’ssubsidiaries, associatesandjointventures • PeriodicallyreviewtheCompany’sstandardsofdirectorindependenceandrecommendchangestothe BoardofDirectorsforapproval • OverseetheorientationprogramfornewBoardmembers • ReviewandmakerecommendationstotheBoardregardingtheCompany’sprocessforcontinuingeducation tobeprovidedtotheBoardmembers • Engageconsultantsorindependentprofessionalstoprovideopinionsoradvice,ifnecessary,inaccordance withtheCompany’sregulations • OverseetheannualperformanceevaluationsoftheBoard,sub-committeesoftheBoard(includingareview bytheCommitteeofitsownperformance),andeachBoardmember.Reviewtheevaluationresultsofeach sub-committee.ReporttheevaluationresultsrelatingtotheBoard,sub-committees(includingthisCommittee), andindividualdirectorstotheBoardasappropriate • PeriodicallyreviewtheCompany’sCorporateGovernancePolicyandrecommendchangestotheBoard forapproval

Name Position

1. Mr. Prathueng Srirodbang Chairman of the NCG/Independent Director

2. Mr. Arak Chonlatanon Member of the NCG

3. Mr. Wong Tuan Keng Alan Member of the NCG

4. Dr. Sillapaporn Srijunpetch Member of the NCG/Independent Director


• ReviewandmakerecommendationstotheBoardregardingpotentialwaiversoftheCodeofConduct& EthicsinvolvingBoardmembersorexecutivesasandwhentheymayoccur • InconsultationwiththeChairmanoftheExecutiveCommittee,evaluatepotentialsuccessorsfortheChairman oftheExecutiveCommitteeandotherkeypositions,andreportthesuccessionplantotheBoardonayearly basis • ReviewandreassesstheadequacyofNCGcharterandrecommendchangestotheBoardforapprovalon ayearlybasis • ReportregularlytotheBoardmatterswithinthescopeofresponsibilitiesoftheCommittee,aswellasany specialissuesthatmerittheattentionoftheBoard • Performotherdutiesasrequiredbylaw,orasdeemednecessary,orasdeemedappropriate,toensurethe effectivefunctioningoftheBoard,thehighqualitycorporategovernance,andtheeffectiveethicsprograms andcompliancewiththelawsandregulations,orastheBoardmayassignfromtimetotime • TodeterminepoliciesandcriteriafornominatingmembersfortheBoardandSub-CommitteesoftheCompany • TonominatedirectorsbyconsideringsuitablecandidatesforapprovalbytheBoard,and/ortheShareholders Meeting,asthecasemayrequire • ToconsidersuitablecandidatestobenominatedasChairmanoftheEXCOM,ifthereisvacancy,aswellas todeterminecriteriaforsucceedingtheseniorexecutives • OthersasassignedbytheBoard In2010,theNCGmet3timestoconsiderappointingdirectorsanddeterminingtheirauthorityforthereplacementoftheresigneddirectors,inaccordancewiththecompany’sArticlesofAssociation,aswellastoreviewtheCharterandthefunctionalprocessfortheCommittee.

5.4 Executive Committee (EXCOM)

TheEXCOMconsistsoffourExecutiveDirectors.Thescopeofdutiesandresponsibilitiesareasfollows: • Todeterminethepolicies,directions,strategiesandcoremanagementstructureforbusinessoperations inlinewitheconomicandcompetitiveconditionsthathavebeendefinedanddeclaredtoShareholders, forapprovalbytheBoard • Todeterminethebusinessplans,budgets,andworkingauthoritylimitsoftheCompanyforapprovalbytheBoard • Tomonitorefficientpolicyimplementationandoperatingproceduresaccordingtofavorablebusiness conditions • TomonitortheCompany’soperatingperformancetobeinlinewiththeapprovedbusinessplan • Toconsideranymaterialinvestmentprojects • ToreporttheCompany’sperformancetotheBoardonthemonthlybasis • Havingauthoritytoapprovefinancialtransactionsofnothigherthan400millionbaht.Incaseofthefinance bankingtransactions,forexample,deposit,lending,hedginginstrumentonforeignexchangeandinterest rate,thetransactionvalueanddetailsrequirestheBoard’sapproval.TheEXCOMmaydelegateanexecutive orindividualtocarryoutoracknowledgeabusinessaccordingtothediscretionoftheEXCOM • TheapprovaloftheEXCOMorthedelegatesshallnotbefortheconnectedtransaction(s)orwherethe CommitteemayhaveaconflictofinterestaccordingtotheArticlesofAssociationoftheCompanyorthat definedbytheregulatorybody(bodies)

Name Position

1. Mr. Arak Chonlatanon Chairman of the EXCOM

2. Mr. Wong Tuan Keng Alan Member of the EXCOM

3. Mr. Tanadit Charoenchan Member of the EXCOM

4. Mr. Yongsit Rojsrivichaikul Member of the EXCOM


• OthersasassignedbytheBoard In2010,theEXCOMmet10timestocarryoutitsdutiesandresponsibilities.

Management Team AsatDecember31,2010theCompany’sfirstfourmanagementpersonnel,asdefinedbytheSEC,areasfollows:

Scope of Authorities and Responsibilities of the Managing Director TheManagingDirector(MD)hasauthorityaccordingtothatbeingdelegatedbytheBoard,whichisincompliancewiththerules,regulations,andArticlesofAssociationoftheCompany.TheMDhasnotinitiatedtransactionorenterintotransactionthatheorconflictingpersonmayhaveconflictofinterestswiththeCompanyorthesubsidiaries,asdefinedbytheNotificationsoftherelevantregulators.

Approval authority of the MD TheMDhasbeendelegatedfinancialauthoritybytheBoarduptothemaximumof10millionbahtforbudgetedcapitalexpenditure.

6. Meeting of the Board of Directors TheBoardhaspolicytoscheduleBoard’smeetingsofatleast6timesayear.Themeetingsarenormallypre-scheduledfortheentireyear.Specialmeetingcanbeheldwherenecessary.Inorganizingameeting,theCompanySecretarywillcoordinatewiththeChairmanoftheBoard,ChairmanoftheEXCOM,directors,andtheManagingDirectortoagreeonaspecificmeetingagenda.TheCompanySecretarywillthencoordinatewiththerelevantpartiesanddistributethenoticeofmeetingtogetherwiththemeetingagendaandmeetingdocumentstothedirectorsatleastsevendayspriortothemeetingdatefortheBoardmemberstohavesufficienttimetodigesttheinformation.In2010,theBoardmetfor7times. Eachmeetingwouldnormallytakearoundthreehours,withtheChairmanoftheBoard,orinhisabsenceanappointeddirector,chairingthemeeting.TheChairmanisresponsibleforoverseeingthemeetingprocessandmanagingtimeforeachagendatobesufficientforthedirectorstodiscussandexpresstheiropinionsindependently,takingintofairconsiderationtheinterestoftheshareholdersandstakeholders.ManagementwillprovidesufficientinformationfortheBoardconsideration.Whereadirectormayhaveconflictofinterestwithanymeetingagenda,he/shewillexcusehimself/herselffromthatagendaitem. MinutesofthemeetingwillbedistributedbytheCompanySecretarytothedirectorsforreviewandcommentswithin14daysfrommeetingdate.TheminutesandsupplementarydocumentsofeachmeetingareapprovedbytheBoardandkeptinaccordancewiththelawandrepresentrecordstoevidencetheBoard’sperformanceofdutiesincompliancewithapplicablelaws,rulesandregulations,andshareholders’meetingresolutions. Insummary,therewereBoardandSub-committeemeetingsin2010asfollows:

Name Position

1. Mr. Arak Chonlatanon Chairman of the EXCOM

2. Mr. Anant Kaewruamvongs Managing Director

3. Mr. Anuwat Sanguansappayakorn Chief Financial Officer

4. Dr. Somchai Kittichaikoolkit Senior Director - Marketing

5. Mr. Surasak Utharopas Senior Director - Technical & Operations


*Mr.PrathuengSrirodbangwasabsentfromthemeetingswithapologiesduetorecoveryfromhisoperation.

**Dr.SillapapornSrijunpetchwasabsentfromthemeetingswithapologiesduetorecoveryfromhisillness.

***BeingappointedbytheBoardMeetingNo.3/2010onMarch12,2010asDirectortoreplaceMr.SomkiatKulatumyothinwhoresignedwitheffect


7. Directors and Management Remuneration EveryFebruary,theRCconsiders,analyzes,andrecommendsremunerationofthedirectorstotheBoardforfurtherrecommendationtotheshareholdersforapproval.TheRCalsoapprovestheremunerationmake-upschemeofthemanagement.Theremunerationofthedirectorsandthemanagementshouldcommensuratewiththeirdutiesandresponsibilities,becomparabletotheindustrystandard,andattractiveenoughtoretainqualifieddirectorsandmanagement. TheCompany’spolicyistoremunerateonlyindependentdirectorsandexternaldirectors.Theexecutivedirectorsdonotreceiveremunerationforbeingadirector. RemunerationforeachmanagementpersonnelislinkedwiththeoperatingperformanceoftheCompanyandhis/herworkingperformance.WarrantsforpurchasingtheCompany’scommonsharesarealsoofferedtothemanagementandemployeesundertheEmployeeStockOptionProgram(ESOP)toattractandretaintalentwithintheCompany. In2010,theCompanypaidthefollowingremuneration.

1. Monetary Remuneration for the Board TotalmonetaryremunerationfortheBoard(onlytoindependentdirectorsandnon-executivedirectors)fortheyearendedDecember31,2010comprisedofdirectormonthlycompensation,annualremunerationandmeetingfeestotalingBaht4,718,552forfivedirectorswithdetailsasfollow:

Director AGM BDM ACM NCGM RCM EXCOMMeeting

No. of Meeting Attendance / No. of Meeting in 2010

1. Prof.Dr. Wongkulpat Snidvongs na Ayudhya, M.D.

1/1 7/7 - - - -

2. Mr. Prathueng Srirodbang 1/1 5/7* 4/5* 3/3 - -

3. Mr. Gan Hui Beng 1/1 7/7 5/5 - 3/3 -

4. Dr. Sillapaporn Srijunpetch 1/1 5/7** 4/5** 2/3 - -

5. Mr. Hansa Chevapruke*** 0/1 5/5 - - - -

6. Mr. Wong Tuan Keng Alan 1/1 5/7 - 1/3 2/3 2/10

7. Mr. Arak Chonlatanon 1/1 6/7 - 3/3 3/3 9/10

8. Mr. Yongsit Rojsrivichaikul 1/1 7/7 - - - 10/10

9. Mr. Tanadit Charoenchan 1/1 7/7 - - - 8/10

Name Position Remuneration for 2010* ( Million Baht )

1. Prof.Dr. Wongkulpat Snidvongs na Ayudhya, M.D.

Independent Director and Chairman of the Board 2.03

2. Mr. Prathueng Srirodbang Independent Director and Chairman of the AC 0.66

3. Mr. Gan Hui Beng Independent Director and Member of the AC 0.70

4. Dr. Sillapaporn Srijunpetch** Independent Director and Member of the AC 0.98

5. Mr. Hansa Chevapruke Director and representative of CAT Telecom Plc. 0.35


*DirectormonthlycompensationandmeetingfeesfortheperiodfromJanuarytoDecember2010,andaccruedannualremunerationwhich

wouldbepaidinMarch2011.

** DuetotheacuteandsevereillnessofDr.SillapapornSrijunpetchinMay2010,theBoardapprovedintheMeetingNo.5/2010onAugust10,2010

tocompassionateBaht403,216.48forhismedicalexpenseunclaimableelsewhere.

2. Monetary Remuneration for the Executives TotalmonetaryremunerationfortheExecutivesfortheyearendedDecember31,2010,comprisingofsalary,bonus,providentfund,andotherfringebenefits,wasBaht13,407,300(excludingtheExecutiveChairmanwhoreceivesremunerationfromThaicomPlc.,theindirectshareholderoftheCompany).

3. Other Remunerations 3.1 Other Remuneration for the Board members Apartfromthemonetaryremunerationfortheindependentdirectorsandexternaldirectors,theCompany providedfringebenefits(non-monetaryremuneration)totheChairmanoftheBoard,anindependent director,intheformofcarandfuel. 3.2 Employee Stock Option Program (ESOP) TheCompanyhasaprogramtoissueandofferwarrantsfortheCompany’sordinarysharestothedirectors andemployeestomotivateandrewardforperformanceandcontributionwhichshouldbenefitthe Companyinthelongrun.Underanongoingprogram,theCompanywillissueandoffersuchwarrants continuallyforfive-yearperiodsubjecttoshareholders’approvalineachyear.Attheendof2010, theCompanyhasissuedandofferedfourprograms,thedetailsofwhichareasfollow:

* TheCompanyhasadjustedthewarrantrightasaresultof2010dividendpaymentforfirst6monthsbeingatarateexceeding50%ofnetincome

aftercorporateincometaxundertheconditionsspecifiedintheprospectus.Thelatestrightadjustmentonboththeexerciseratioandexercise

pricewasonAugust20,2010.

Descriptions Program 4 Program 5

Offering Size 8,354,300 8,354,400

Offering Price Bt 0

Warrant Term Not more than 5 years from the Issuance and Subscription Date

Exercise Ratio* 1 unit of warrantper 1.74831 common share

1 unit of warrant per 1.52347 common share

Exercise Price* (Baht per share) 2.048 2.349

Issuance and Subscription Date 31-May-06 30-May-07

The director and management of the Company and its subsidiaries

receiving of the warrants

No. of Warrant allocated(Units)

% of No. of Warrant issued

No. of Warrant allocated(Units)

% of No. of Warrant issued

1. Mr. Anant Kaewruamvongs 1,002,500 12 2,690,100 32.20

2. Mr. Anuwat Sanguansappayakorn 417,700 5 917,400 10.98

3. Dr. Somchai Kittichaikoolkit 417,700 5 540,000 6.46

4. Mr. Surachart Kukasamerat 835,400 10 - -


8. Succession Plan CGpolicyoftheCompanyspecifiesthatthereshouldbeasuccessionplanforthepositionofExecutiveChairmanandseniormanagementtobuildupconfidenceamongshareholdersandstaffthattheoperationsoftheCompanywillnotbedisrupted.TheNCGwillnormallyconsultwiththeExecutiveChairmanandreportthesuccessionplantotheBoardaccordingly.

9. Meeting of Non-executive Directors (NED) CGpolicyoftheCompanyalsospecifiesthatthereshouldbemeetingsoftheNEDwithoutthepresenceofexecutivedirectorsfromtimetotimeasappropriate,toprovideanopportunityfortheNEDtodiscussanysubjectofinterestrelatingtothebusinessoperationsoftheCompany.TheconclusionsmadeateachmeetingshallbereportedtotheBoardandtheExecutiveChairman. OnAugust9,2010,3independentdirectorsand1externaldirectormettodiscusseffectivewaysofreviewingbusinessesperformance,especiallythebusinessunitsthatwereexperiencingchangesoftechnologyandconsumerbehavior.ResultofthemeetingwaspresentedtotheBoardMeetingno.5/2010onAugust10,2010.

10. Performance Assessment of the Board of Directors IntheBoardMeetingNo.2/2011onFebruary16,2011theBoardconductedaself-assessmentfor2010collectively,toassesstheeffectivenessandefficiencyoftheBoardperformance.Overall,theBoardwassatisfiedwiththeaggregateddiversifiedknowledgeandexperiencesoftheBoardmembers,aswellastheopennessandteamworkspiritoftheBoard.However,BoardmembersalsorecommendedmorerelevantinformationtobeprovidedpriortotheMeeting,etc.

Chapter 2: Shareholders’ Rights and Equitable Treatment and Roles of the Stakeholders1. Shareholders’ Rights and Equitable Treatment TheBoardrespectstheshareholdersrightsandhasdutytoprotecttherightsofeveryshareholderequitably,regardlessoftypeofshareholders,i.e.,retail,foreign,institutional,orwholesaleinvestor.Everyshareholdershallhavethefollowingrightsandequitability. • Rightinreceivingsharescertificate,sharestransferring,acknowledgingtheinformationaboutoperating performanceandbusinesspolicy,regularlyandtimely • Rightinreceivingprofitsharing,equitably • Rightinattendingtheshareholdersmeeting,expressingopinion,givingrecommendation,andbeinginvolved indecisionmakinginsignificantchanges • Rightinappointingthedirectors Topromoteequitabletreatmentofshareholders,commencingAGM2009,theminorityshareholderscanproposemeetingagenda(s)orperson(s)tobeelectedasdirector(s)intheAGM. FortheAGM2011,theminorityshareholderscanproposeagenda(s)orperson(s)totheBoardintheperiodfromNovember16,2010toJanuary15,2011. Theproposalreviewingcriteriaandprocedure,beforegivingrecommendationtotheBoardtoconsiderwhethertheproposalshouldbeincludedtotheAGM,ispublishedinthewebsiteoftheCompany.Itcoversbothqualificationsoftheshareholder(s)whomake(s)aproposalandthecharacteristicsoftheproposalwhichareinlinewiththerelevantlaw,rules,andregulations. TheCompanyhastoannouncetheproposalacceptanceperiodratherlongtimebeforethemeetingdate.TheperiodisnormallyfallingwithinDecemberandJanuaryinthecaseofanAGMinMarchorApril.ThisistoallowtheBoardhavingsufficienttimetoconsiderthesuitabilityoftheproposalsinthecontextofexistinglawsandregulationsandthebestinterestofallshareholders.


2. Shareholders’ Meeting ThepolicyoftheCompanyistoconducttheshareholders’meetingtobeincompliancewiththelaw,theArticlesofAssociationandtheguidelinestipulatedbytheregulatorybodies.In2010,therewasoneshareholders’meeting,theAnnualGeneralMeeting(AGM). EveryshareholdershallhaverightsandequitabletreatmentinaccessinginformationofShareholders’Meeting.TheCompanyhaspolicyfortheshareholderstoaccessthemeetingscheduleandinformationonthewebsiteoftheCompanyatleast30dayspriortothemeetingdate.Hardcopiesofthenoticetothemeetingandthemeetingdocumentaresenttotheshareholdersatleast21dayspriortothemeetingdate. Thedocumentnormallycontainsnecessaryinformationasrequiredbyrelatedlawandregulations,includingopinionoftheBoard,backgroundorrationaleinformationforeachagendaitemdeemedusefulfortheconsiderationoftheshareholders. Inthenoticetothemeeting,theCompanyalwaysinformsandattachesdocumentrequiredformeetingregistration,proxyform,aswellastheinstructioningivingproxytogetherwithnamelistandprofileofatleastoneindependentdirectortobetheagentfortheshareholderswhocannotattendthemeeting.AllsuchnoticeandmeetingdocumentswillbepublishedintheCompany’swebsitefornotlessthan30days,andinnewspaperforthreeconsecutivedayspriortothemeeting.Theminutesofthemeetingshallalsobepublishedinthewebsiteforshareholderstoaccessby14daysafterthemeetingdate. Inthemeetingregistrationprocess,theCompanyemploysanadvancedandreliableregistrationsystemtofacilitateshareholdersandquickvotecounting.Theregistrationprocessisreadytooperateatleasttwohoursbeforebeginningofthemeeting.AlegaladvisingfirmwouldbeengagedtoactasanexternalinspectortomonitortheAGMtoensureitstransparency,legitimacy,andconformancewiththeArticleofAssociationoftheCompany.Inordertopromotebettertransparencyinthevotescounting,intheagendaofdirectorelection,votingprocesswasdoneinthemeetingroom.Votingballotswillbecollectedfromallpresentshareholders;agree,disagreeorabstain. Inthe2010AGM,theChairmanoftheBoardandalldirectorsattendedthemeeting,withdetailsonpage62,toanswerquestionsarisingfromshareholders.Beforecommencementofthemeeting,theChairmanofthemeetingexplainedthevotingmethodforcommonunderstandingoftheshareholders.Thevotingresultswererecordedintheregistrationsystem.ThemeetingwasconductedfollowingtheArticleofAssociationsoftheCompanybyusingoneshareonevotebasisforallagendas.TheChairmanalsoencouragedtheshareholderstoexpressopinionandassuredthatsufficienttimewasprovidedtoeachagenda.Whentherewasnomorequeryinanagendaitem,thevotingresults,whichtheshareholdershadvotedduringtheregistrationprocess,wouldbeannounced.Therewasnocasethatvariousunrelatedmattersweregatheredforapprovalinoneagendaitem.

3. Role of the Stakeholders TheCompanyisawareoftherightsofstakeholdersandhaspolicytoensuretheimportanceoftherightsbytheappropriateprioritizationofallstakeholders,whoareshareholders,employees,executives,customers,partners,creditors,society,andthepublic.CooperationbetweenstakeholdersshallbemadeaccordingtotheirrolesandresponsibilitiessothattheCompany(We)canrunsmoothlyandstronglyinordertofairlybenefitallgroupsofstakeholdersasfollow:

Shareholders : Westrivetobeagoodrepresentativeofshareholdersincarryingoutbusinesstomaximize shareholdersvaluewithregardstothesustainablegrowthofthevalueoftheCompanyinthe longrun,goodandcontinualreturn,andthetransparentandreliableinformationdisclosureto theshareholders.Employees : Weputfocusontheemployees,themostvaluableresourceandoneofthecriticalfactorsto corporatesuccess.Therefore,weprovideskilltraining,knowledgesharingandlearningopportunities forallemployeestohelpthemdevelopandgrowintheircareerwiththeCompany.Aperformance appraisalsystemisinplacetoalignemployeefocuswiththegoalsoftheCompanyaswellasto ensurethatthebusinesssuccessisofmutualbenefit.


Customers : Westrivetomakeourcustomersconfidentandsatisfiedwithtopqualityserviceswithcontinual improvementatappropriatecharges.Weprovidethemreliableserviceinformation,keepgood relationships,anddonotdisclosetheirinformationwithoutpriorpermissionexceptforinformation thathastobedisclosedtothepublicbylaw.Partners : Weareawareoftheimportanceofpartnersandregardthemasacriticalfactorinmutualbuilding upofvaluetothecustomers.Therefore,wemakerelationshipswithgroupsofpartnerequitablyfor mutualbusinessinterestwithoutbreachingreputationorlaw.Creditors : Wepayattentiontotheimportanceofthecreditorsandstrivetokeepgoodrelationshipswith themonthebestinterestoftheCompany.Wealsoholdtothecontractconditionscommitted withthecreditors.Competitors : Weareawareofthebenefitsfromcompetitiontowardbusinessmanagementandcontinual servicequalityimprovementfortheinterestofcustomers.Therefore,wehavepolicytosupport andpromoteforfreeandfairtrade,andhavenopolicytocompetebymeansofhavingtheir informationillegallyandimmorally.Society : WeareThaicompanythatiscommunitymindedandstrivestobeagoodcorporatecitizento society.Ourcommunityservicecanreachoutacrossthecountry.Wehaveinitiatedaprojectto providepeople,includingchildrenandpeopleinremotearea,withtheinformationoncorrect usageoftheinternettoaccessusefulinformationtoenablewiderlearningandbecomea knowledge-basesociety.

Chapter 3: Information Disclosure and Transparency TheCompanyvaluestransparencyandsufficientinformationdisclosurethatisembeddedasaroleandresponsibilityoftheBoardindisclosingaccurate,complete,thorough,andtimelyfinancial,operational,andotherrelevantinformationfortheshareholdersandstakeholderstohavetimelyandaccurateinformation.ThedisclosureshallbemadethroughthecommunicationchannelsoftheSET,SEC,andCompanywebsiteatwww.csloxinfo.com,andgroup’swebsiteofthemothercompanyatwww.shincorp.com

Investor Relations (IR) TheCompanyhasestablishedtheInvestorRelationsUnitastherepresentativeincommunicatingrelevantandmeaningfulnewsandinformationtotheshareholders,investors,securitiesanalysts,andotherrelevantparties.Apartfromthedisclosureresponsibilityonfinancialinformationandquarterlyandyearlyoperatingperformance,asrequiredbylaw,theCompanyalsoarrangespressconferenceimmediatelyonthenextworkingdayafterinformationdisclosesaremadetotheSET.Thisistoensuretheinformationwillreachinvestors,interestedpartiesandthepubliconatimelyandthoroughbasis. In2010,wemetinstitutionalinvestorsandretailinvestorsfor6timestopromotegoodunderstandingtocurrentmarketandoperatingsituationandthetransparencyofthedisclosedinformation,aswellastoallowthemtoaskrelevantquestions.Briefingofquarterlyandyearlyoperatingperformancewasalsoarrangedtotheinvestors,analysts,andinterestedpeopleasdetailedbelow.

Analyst briefing1Q2010 Quarterly Briefing on May 14, 2010

2Q2010 Quarterly Briefing on August 16, 2010

3Q2010 Quarterly Briefing on November 16, 2010

2010 Annual Briefing on February 21, 2011


AnyinterestedpersoncancontactIRofCSLatTel.022638000ext.5184,orate-mailaddress:[email protected].

Chapter 4: Internal Control and Risk Management1. Internal Control TheBoardisresponsiblefortheCompany’ssystemofinternalcontroltosafeguardshareholders’investmentandtheCompany’sassets.Internalcontrolfacilitatestheeffectivenessandefficiencyofoperations,helpsensurethereliabilityofinternalandexternalreporting,assistcompliancewithlawsandregulations,andstrengthensoverallriskmanagementoftheenvironmentwithinwhichthebusinessoperates.Tothisend,theBoardhasempoweredtheAuditCommittee(AC),aspartofitscharter,tomonitortheworkingoftheinternalcontrolsystemwithintheCompanyandreportitsfindingstotheBoardonaregularbasis. TheACisassistedbytheexternalandinternalauditorsinitsreviewandsupervisionofinternalcontroloperationswithintheCompany.BoththeexternalandinternalauditorsareindependentofManagement.TheInternalAuditOfficeoftheCompanyreportsfunctionallyanddirectlytotheAC.TheannualworkplanoftheInternalAuditOfficeformsthebasisuponwhichthesystemswithintheCompanyrelatingtointernalcontrol,riskmanagementandcorporategovernancearereviewedandreportedtotheACandBoardofDirectors. During2010,asmallnumberofemployeerelatedfraudulentactsinvolvingthewrongfuldiversionofcashwereuncovered.UpondiscoveryfraudcaseswerepromptlyinvestigatedandtheappropriateremedialactiontakentofurtherstrengthentheinternalcontrolprocessandprotecttheassetsoftheCompany.TheoverallfinancialimpactofthefraudulentactswasimmaterialtothefinancialpositionoftheCompany.BoththeACandBoardwereinformedonatimelybasis. Onanannualbasis,theACalsoevaluatestheadequacyandefficientoperationoftheinternalcontrolsystemoftheCompanybyreferencetothefollowingfivefactors: 1.Organizationcontrolandenvironment 2.Riskmanagement 3.Managementcontrolactivities 4.Informationandcommunication 5.Systemmonitoring ThefindingsofthisevaluationarethenreportedtotheBoard.IntheBoardMeetingNo.2/2011,onFebruary16,2011basedonthereportoftheAC,theBoardconcludedthattheCompanyhadadequateinternalcontrolandriskmanagementsystemthatwasoperatingeffectively.2. Management Supervision TheBoard,withitscompositionofskillsandexperience,annuallyconsidersandapprovesthestrategicdirectionandbusinessplandevelopedbymanagementtofulfillthegoalsoftheCompany.Managementperformanceisreviewedonanongoingbasis,comparingactualperformanceagainstthebusinessplanandbudget,aswellasotherfinancialandoperationalreportssubmittedtotheBoard.Managementperformanceisevaluatedannuallyinthedeterminationofcompensationrewards.

Opportunity day1Q2010 on May 17, 2010

2Q2010 on August 17, 2010

3Q2010 on November 17, 2010

2010 Annual Briefing on February 24, 2011


3. Risk Management TheCompanyhasapolicytomanageallriskswhichmayhaveanimpactontheCompany,toensurethattheCompanyoperateswithinanappropriateandacceptablerisklevel. ARiskManagementCommittee(RMC)isinplace,comprisingtheMDastheChairman,andtheheadsofmajordepartmentsascommitteemembers.HeadoftheOfficeofInternalAuditactsassecretarytothecommitteetoensurerisksareproperlydefinedandeffectivelyaddressed,aswellastheappropriateriskmitigationmeasuresaretaken. TheRMCmeetsquarterlytoreviewandupdateCompanyriskprofilewhichconsistsofbothinternalandexternalriskfactors,risklevelassigned,andstatusofhighlevelriskfactors. AttheBoardandsub-committeelevel,HeadoftheOfficeofInternalAuditupdatesriskmanagementeffectivenesstotheACwhileMDprovidesupdatetotheBoard.

Chapter 5: Code of Conduct TheCompanyhasincludedcorporateCodeofConductasapartoftheCGpolicytoactasguidelinesandgoodpracticeforthedirectors,management,andstafftoupholdthereputationoftheCompany.TheCodeofConductcoversthefollowingmajortopics.

1. Business Competition TheCompanyhasapolicyoffreeandfaircompetition,notbindthedistributorstosolelyselltheproductsoftheCompany.TheCompanyshallnotacquireinformationofitscompetitorsbyanyillegalorunethicalmethods.

2. Conflicts of Interest Inthecasethatthedirectors,management,and/orstafffacethesituationthattheirpersonalinterestsmayconflictwiththeinterestoftheCompany,theCodeofConductservesastheguideandstandardinrespondingtothesituation. • Theprohibitionofpersonallyreceivingandofferingofmoneyorotherbenefittothecustomer,partner,and anybodytheyaredealingwithonbehalfoftheCompany.Receivingofgiftsorbusinessentertainmentshould beavoidedwherethevalueofgiftsornatureoftheentertainmentcanbedeemedinappropriateor fargreaterthanfornormalbusinessrelationship. • Thedirectors,management,andstaffmembersatalllevelsshallnotengageinanyotherbusinessthat affectstheirperformance,dutiesandworkinghoursintheCompany.Adirectororanexecutive,underthe definitionoftheSEC,shallreporthis/herbusinessinvolvementwiththeCompanytohis/herdirectsupervisor, whetheritishis/herdirectbusiness,his/herfamily,orotherlegalentity,byusingthespecificCompanyform, immediatelyuponjoiningtheCompany,orimmediatelyafterenteringintosuchaconflictingbusiness,and tobeupdatedonayearlybasis.ThecompletedformshallbekeptwiththeCompanySecretary.Forthe avoidanceofdoubt,nodirector,managementandstaffmemberatalllevelsoftheCompanyispermitted tobeinvolvedinanybusinesswhichisincompetitionwiththecompaniesintheGroup,regardlessofwhether themanagementorthestaffdirectlyorindirectlybenefitfromthatbusiness. • TheholdingofdirectorpositioninacompanyoutsidetheGroupshallnotbebarredprovideditdoesnot infringeonrelevantlawsandregulations,andapprovalinadvancehasbeenobtainedfromtheauthorized person,exceptforadirectorpositioninanonprofitorganization. • Thedirectors,executives,andstaffcanparticipateinpoliticalactivitiesunderthetermsoftheConstitution ofThailand.However,theycouldnotclaimthestatusofbeingaCompanyemployeeforthepurposeof politicalactivities,ortomisleadthattheCompanyisinsupportorinfavourofapoliticalparty.TheCompany hasthepolicyofpoliticsneutrality.Thedirectors,executivesandstaffshallresignfromtheCompanyifthey wouldliketoacceptapoliticalrelatedposition,orstandforbothregionalandnationalelections. • InthecaseofconnectedtransactionswithintheGroup,therelevantlaw,rules,andregulationsunderwhich


suchtransactionscanbeapprovedorsanctionedarefullycompliedwith.TheCompanyupholdstheprinciple ofarm’slengthbasisinitsdealingswithoutsideparties.Onaquarterlybasis,allconnectedtransactions processedarereported,bylegalentityandnatureoftransaction,totheACandtheBoard.

3. Use of Inside Information, Trading of the Group’s Securities, and Distribution of Information or Interview to the Press or the Public TheCompany’sCodeofConductspecifiesthatthedirectors,management,andstaff,atalllevels,shallnotusemarketsensitiveinsideinformationoftheGroupfortheirownorothers’interestsbeforesuchinformationisdisclosedtothemarketandinvestingpublic. AlthoughinvestmentandtradingintheGroup’ssecuritiesistheindividual’srightandfreedom,theCodeofConductrequiresthedirectors,management,andstafftoavoidorsuspendtradingoftheGroup’ssecuritiesforaperiodofonemonthpriortothedisclosureofallfinancialstatementstothepublicinordertopreventtheconflictofinterest. Inaddition,forcompliancewiththeclauseNo.59oftheSecuritiesandExchangeAct,B.E.2535,theCompanyrequiresthedirectorsandmanagement,includingtheirspouseandminorchildtoreporttheirsecuritiesholdingandchangesusingtheprescribedformandonthetimingspecifiedbytheregulation.SuchreportsarepresentedtoandacknowledgedbytheBoardonquarterlybasis. ThedistributionofinformationrelatingtotheCompanyshallbemadeonlybythepersonhavingdirectresponsibility,orbeingspecificallyassigned,onthebasisoffact,correctness,andprudence.


Great service and deal,you can create greencompany by Cloud.


mDirectors and Management TeamZ Directors and Management TeamZ Directors Shareholding in the Company and its Subsidiaries of the Year 2010


1.Mr.AnuwatSanguansappayakorn ChiefFinanceOfficer

2.Dr.SomchaiKittichaikoolkit SeniorDirector-Marketing

1.Prof.WongkulpatSnidvongsnaAyudyha,M.D. IndependentDirectorandChairmanoftheBoard

2.Mr.PrathuengSrirodbang IndependentDirectorandChairmanoftheAuditCommittee

3.Mr.ArakChonlatanon DirectorandChairmanoftheExecutiveCommittee

4.Mr.GanHuiBeng IndependentDirectorandMemberoftheAuditCommittee

3.Mr.AnantKaewruamvongs ManagingDirector

4.Mr.SurasakUthayopas SeniorDirector-TechnicalandOperations

5.Mrs.SuwannaJanesawatpong CompanySecretary

Directors and Management Team

1

1

2

2

3

3

4

4

5


Mr.SanchaiThiewprasertkulManagingDirector

TeleinfoMediaPublicCompanyLimited

Mr.SurachartKugasemratDeputyManagingDirector

TeleinfoMediaPublicCompanyLimited

5.Dr.SillapapornSrijunpetch IndependentDirectorandMember

oftheAuditCommittee

6.Mr.HansaChevapurke Director

7.Mr.WongTuanKengAlan DirectorandMemberoftheExecutiveCommittee

8.Mr.YongsitRojsrivichaikul DirectorandMemberoftheExecutiveCommittee

9.Mr.TanaditCharoenchan DirectorandMemberofthe

ExecutiveCommittee

5 6 7 8 9


Mr.PrathuengSrirodbangAge 72Title Independent Director and Chairman of the Audit Committee Shareholding* NoneRelationship with Management NoneHighest Education National Defense College class. 32 Mini MBA, Thammasat University Barrister-at-law The Thai Bar Bachelor Degree in Laws, Thammasat UniversityGovernance Training of IOD DAP: Directors Accreditation Program Class 11/2004 FND: Finance for Non-Finance Directors Class 24/2005 QFR: Improving the Quality of Financial Reporting Class 2/2006 FSD: Financial Statements for Directors Class 6/2009Experience • 2009 - Present Audit Committee, National Insurance Co., Ltd. • 2003 - Present Independent Director and Chairman of the Audit Committee, CS LoxInfo Plc. • 1998 - Present Director, National Insurance Co., Ltd. • 1999 - 2002 Chairman of the Audit Committee, Chumporn Palm Oil Industry Plc. • 1994 - 1998 Deputy Permanent Secretary, Ministry of CommerceIllegal Record in past 10 years None* Includes holdings by spouse and minor children as of December 31, 2010

Prof.WongkulpatSnidvongsnaAyudyha,M.D.Age 70Title Independent Director and Chairman of the Board Shareholding* NoneRelationship with Management NoneHighest Education Doctorate Degree FRCOG:D.Obst.RCOG (UK): MB.BS (London) MRCS.LRCP (England)Governance Training of IOD DCP: Directors Certification Program Class 89/2007Experience • Present Consultant Obstetrician and Gynecologist in private practice Honorary Consul of Republic of Lithuania in Thailand Committee Member, Development Cooperation Foundation • 2009 - Present Consultant, Hydro and Agro Informatics Institute • 2008 - Present Audit Committee, Thai Red Cross • 2007 - Present Independent Director and Chairman of the Board, LoxInfo Plc. • 1997 - Present Member of the Council, Thai Red Cross • 1994 - Present Member of Red Cross Properties Management Committee • 1992 - 2000 Director of Central Bureau, Thai Red Cross • 1991 - 1997 Professor in Obstetrics and Gynecology • 1972 - 1991 Lecturer, Assistant Professor and Associate Professor at Department of Ob. Gyn. Faculty of Medicine, Chulalongkorn UniversityIllegal Record in past 10 years None* Includes holdings by spouse and minor children as of December 31, 2010


Mr.ArakChonlatanon Age 60Title Director and Chairman of the Executive Committee Shareholding* NoneRelationship with Management NoneHighest Education Bachelor Degree in Electronic Engineering, Chulalongkorn UniversityGovernance Training of IOD DCP: Directors Certification Program Class 106/2008Experience • 2009 - Present Director and Chairman of the Executive Committee, CS LoxInfo Plc. • 2009 - Present Member of the Executive Committee, Advanced Info Service Plc. Chief Executive Officer, Thaicom Plc. • 2007 - Present Director, Chairman of the Executive Committee- Media & New Business, Shin Corporation Plc. • 1998 - Present Member of the Executive Committee, Shin Corporation Plc. • 2000 - 2007 Chairman of the Executive Committee - E-Business and Others, Shin Corporation Plc. Illegal Record in past 10 years None* Includes holdings by spouse and minor children as of December 31, 2010

Mr.GanHuiBengAge 60Title Independent Director and Member of the Audit CommitteeShareholding* NoneRelationship with Management NoneHighest Education Bachelor Degree in Economics, University of Wales Institute of Science and Technology, U.K.Governance Training of IOD DCP: Directors Certification Program Class 47/2004Experience • 2003 - Present Independent Director and Member of the Audit Committee, CS LoxInfo Plc. • 2006 - 2006 Deputy President Director, Bank Buana Indonesia • 2000 - 2005 Managing Director and Chief Executive Officer, UOB Radanasin Bank Plc. • 1987 - 1999 Vice President, Citibank N.A.Illegal Record in past 10 years None* Includes holdings by spouse and minor children as of December 31, 2010


Mr.HansaChevapurke**Age 51Title Director Shareholding* NoneRelationship with Management NoneHighest Education Master of Public and Private Management Program, Graduate School of Public Administration, National Institute of Development Administration (NIDA)Governance Training of IOD DCP: Director Certification Program Class 132/2010Experience • 3/2010 - Present Director, CS LoxInfo Plc. • 2009 - Present Executive Vice President, Legal Counsel CAT Telecom Plc. • 2007-2008 Vice President, Business Partner Contract Management Department, CAT Telecom Plc. • 2007 Assistant Vice President, Business Partner Contract Management Department, CAT Telecom Plc. • 2004 - 2007 Manager, CDMA Contract Management, Business Partner Contract Management Department, CAT Telecom Plc.Illegal Record in past 10 years None * Includes holdings by spouse and minor children as of December 31, 2010 ** Being appointed by the Board Meeting No. 3/2010 on March 12, 2010 as Director to replace Mr. Somkiat Kulatumyothin who resigned with effect from February 22, 2010.

Dr.SillapapornSrijunpetchAge 47Title Independent Director and Member of the Audit Committee Shareholding* NoneRelationship with Management NoneHighest Education Doctorate Degree in Accounting, Manchester Business School, University of Manchester, U.K.Governance Training of IOD DAP: Directors Accreditation Program Class 51/2006Experience • 2005 - Present Independent Director and Member of the Audit Committee, CS LoxInfo Plc. • 1997 - Present Lecturer of Master of Accounting Profession, Faculty of Commerce and Accountancy, Thammasat University • 2004 - 2006 Director of Master of Accounting Profession, Faculty of Commerce and Accountancy, Thammasat University • 1995 - 1997 Director and Group Financial Controller, Jardine Matheson (Thailand) Limited • 1986 - 1995 Senior Manager, PriceWaterhouse Coopers ABAS LimitedIllegal Record in past 10 years None* Includes holdings by spouse and minor children as of December 31, 2010


Mr.WongTuanKengAlan Age 44Title Director and Member of the Executive Committee Shareholding* NoneRelationship with Management NoneHighest Education Master Degree in Business Administration, University of Strathclyde, U.K. Governance Training of IOD -Experiences • 2009 - Present Director and Member of the Executive Committee, CS LoxInfo Plc. • 2009 - Present Regional Financial Controller Singapore Telecommunications Ltd. • 2005 - 2009 Director of Regional Finance, Asia & Middle East, Neptune Orient Lines Ltd. • 2003 - 2004 APL Logistics Finance Director, Asia, Neptune Orient Lines Ltd. • 2002 - 2003 Finance and Business Planning Manager, Compaq Computer Asia Pacific Pte Ltd. • 2000 - 2002 Asia Pacific Finance Manager, Compaq Computer Asia Pacific Pte Ltd.Illegal Record in past 10 years None * Includes holdings by spouse and minor children as of December 31, 2010

Mr.YongsitRojsrivichaikulAge 46Title Director and Member of the Executive Committee Shareholding* NoneRelationship with Management NoneHighest Education Master Degree in Business Administration, California State University, U.S.A.Governance Training of IOD DCP: Directors Certification Program Class 89/2007 R-CDC: Chartered Director Class 3/2008Experience • 2007 - Present Director and Member of the Executive Committee, CS LoxInfo Plc. • 2009 - Present Executive Vice President - Marketing & Sales - China, Thaicom Plc. • 2004 - 2009 Executive Vice President - Marketing & Sales, Thaicom Plc. • 1991 - 2004 Vice President - Marketing, Thaicom Plc. Vice President - Marketing & Sales, Thaicom Plc. Vice President - International Sales, Thaicom Plc. Assistant Vice President - Marketing and Sales, Thaicom Plc. Assistant Vice President - International Sales, Thaicom Plc. Marketing and Sales - Manager, Thaicom Plc. Business Development - Manager, Thaicom Plc.Illegal Record in past 10 years None* Includes holdings by spouse and minor children as of December 31, 2010


Mr.AnantKaewruamvongsAge 49Title Managing Director Shareholding* NoneRelationship with Management NoneHighest Education Master Degree in Management, SASIN Graduate Institute of Business Administration of Chulalongkorn UniversityGovernance Training of IOD DCP: Directors Certification Program Class 66/2005 DAP: Directors Accreditation Program Class 45/2005Experience • 2005 - Present Managing Director, CS LoxInfo Plc. • 2007 - 2007 Director and Member of the Executive Committee, CS LoxInfo Plc. • 1999 - 2005 Deputy Managing Director, CS LoxInfo Plc. • 1997 - 1999 General Manager, CS Satellite Phone Co., Ltd. • 1995 - 1997 General Manager, Lao Telecommunications Co., Ltd. • 1993 - 1995 Business Deveopment Manager, Internation Broadcasting CorporationIllegal Record in past 10 years None* Includes holdings by spouse and minor children as of December 31, 2010

Mr.TanaditCharoenchanAge 43Title Director and Member of the Executive Committee Shareholding* NoneRelationship with Management NoneHighest Education Master Degree in Business Administration, Sloan School of Management, Massachusetts Institute of Technology, U.S.A. Master Degree in Science (Computer), Chulalongkorn UniversityGovernance Training of IOD DAP: Directors Accreditation Program Class 66/2007 DCP: Director Certification Program Class 110/2008Experience • 2/2011 - Present Chief Investment Officer, Thaicom Plc. • 2007 - Present Director and Member of the Executive Committee, CS LoxInfo Plc. • 2008 - 2/2011 Chief Financial Officer, Thaicom Plc. • 2004 - 2008 Acting General Manager, DTV Service Co., Ltd. • 2002 - 2008 Vice President - Finance and Accounting, Thaicom Plc. • 2000 - 2001 Assistant Vice President - Finance and Accounting, Thaicom Plc. • 1995 - 1999 Department Manager - Finance and Accounting, Thaicom Plc. • 1992 - 1995 Accounting Manager, IBC Plc. • 1989 - 1992 Senior Auditor, SGV Na-Thalang Co., Ltd.Illegal Record in past 10 years None* Includes holdings by spouse and minor children as of December 31, 2010


Mr.AnuwatSanguansappayakornAge 45Title Chief Finance Officer Shareholding* NoneRelationship with Management NoneHighest Education Master Degree in Accounting, Chulalongkorn UniversityGovernance Training of IOD DCP: Directors Certification Program Class 88/2007Experience • 2003 - Present Chief Finance Officer, CS LoxInfo Plc. • 1998 - 2003 Accounting Manager, CS Communications., Ltd. • 1997 - 1997 Planning Manager, Thai Capital Final Finance & Securities Co., Ltd. • 1996 - 1997 Manager, Krung Thai Finance & Securities Co., Ltd. • 1994 - 1996 Accounting Manager, Multi Credit Corporation of Thai • 1988 - 1993 Senior Auditor, Deloittr Touch Thomatsu JaiyosIllegal Record in past 10 years None* Includes holdings by spouse and minor children as of December 31, 2010

Mr.SurasakUthayopasAge 47Title Senior Director - Technical and Operations Shareholding* 0.0008%Relationship with Management NoneHighest Education Master of Engineering (Electrical Engineering), Chulalongkorn UniversityGovernance Training of IOD -Experience • 2009 - Present Senior Director - Technical & Operation, CS LoxInfo Plc. • 2008 - 2009 Acting Senior Director - Technical & Operation, LoxInfo Plc. • 2006 - 2008 Senior Project Manager, Smiths Detection (Thailand) • 1998 - 2006 Assistant Vice President, Loxley Plc. • 1995 - 1998 Assistant Vice President, Loxley Infra Co., Ltd. • 1994 - 1995 Manager, TT & T Plc. • 1993 - 1994 Sales Support Manager, Shinawatra Satellite Co., Ltd.Illegal Record in past 10 years None* Includes holdings by spouse and minor children as of December 31, 2010


Mrs.SuwannaJanesawatpongAge 42Title Company Secretary Shareholding* NoneRelationship with Management NoneHighest Education Master Degree, Master of Business Administration (Finance), Chulalongkorn University Governance Training of IOD -Experience • 2008 - Present Company Secretary, CS LoxInfo Plc. • 2003 - Present Head of Internal Audit, CS LoxInfo Plc. • 2001 - 2003 Internal Audit Specialist, Thaicom Plc. • 1997 - 2001 Internal Audit, Securicor (Thailand) Ltd. • 1994 - 1997 Treasury Manager, Metropolis Trust and Securities Plc. • 1990 - 1992 Senior Marketing Officer, Nation Multimedia Plc.Illegal Record in past 10 years None* Includes holdings by spouse and minor children as of December 31, 2010

Dr.SomchaiKittichaikoolkit Age 44Title Senior Director - Marketing Shareholding* NoneRelationship with Management NoneHighest Education Doctorate Degree in Electronic Engineering, Tohoku University, JapanGovernance Training of IOD -Experience • 2009 - Present Senior Director - Marketing, CS LoxInfo Plc. • 1999 - 2009 Director - Marketing, CS LoxInfo Plc. • 1997 - 1998 IT Specialist, Shinawatra Information Technology Co., Ltd. • 1994 - 1996 Marketing Manager, Shinawatra Computer and Communications Co., Ltd.Illegal Record in past 10 years None* Includes holdings by spouse and minor children as of December 31, 2010

As at December 31, 2010, the number of ordinary shares includes holding by spouse and children, not full age.

* BeingappointedbytheBoardMeetingNo.3/2010onMarch12,2010asDirectortoreplaceMr.SomkiatKulatumyothinwhoresignedwitheffect


** OnOctober28,2010,ShineedotcomCompanyLimited(SHINEE)hadregistereditsliquidationwiththeMOC,andtheprocessofliquidationhad

beencompletedonJanuary5,2011.

Directors’ Shareholding in the Company and its subsidiaries of the Year 2010

Name Position

CS

LoxInfo

Plc.

Teleinfo

Media

Plc.

AD

Venture

Plc.

Shinee

dotcom

Co., Ltd. **

Hunsa

dotcom

Co., Ltd.

Watta

Classifieds

Co., Ltd.

Ordinary

Shares

Ordinary

Shares

Ordinary

Shares

Ordinary

Shares

Ordinary

Shares

Ordinary

Shares

2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009

Professor Wongkulpat

Snidvongs na Ayudyha

Chairman of the

Board of Directors

- - - - - - - - - - - -

Mr. Arak Chonlatanon Director - 220,000 1 1 - - - - - - - -

Mr. Pratheung Srirodbang Chairman of the

Audit Committee

- - - - - - - - - - - -

Mr. Gan Hui Beng Member of the

Audit Committee

- - - - - - - - - - - -

Dr. Sillapaporn Srijunpetch Member of the

Audit Committee

- - - - - - - - - - - -

Mr. Hansa Chevapurke * Director - - - - - - - - - - - -

Mr. Wong Tuan Keng Alan Director - - - - - - - - - - - -

Mr. Yongsit Rojsrivichaikul Director - - - - - - - - - - - -

Mr. Tanadit Charoenchan Director - - 1 1 - - - - - - - -


Green Cloud

computing

truly be

your friend.

mFinancial ReportZ Related Party TransactionsZManagement’s Discussion and AnalysisZ Board of Directors’ Responsibility for Financial Reporting

mAuditor’s ReportZ Financial StatementsZNotes to the Financial Statements Z Dividend Policy and Annual Audit Fee for 2010

mGeneral Information for InvestorZ General Information on Reference Persons/ Investor Information

Transaction Description

Amount Dec 31, 2009 (Million Baht)

Amount Dec 31, 2010 (Million Baht)

Shin Corporation

Group

SingTel and Temasek

GroupTotal

Shin Corporation

Group

SingTel and Temasek

GroupTotal

Totalsalesandservicesincome 280.70 1.25 281.95 391.89 1.02 392.91

Totalotherincome 0.06 - 0.06 3.48 - 3.48

Totalexpenses 197.40 15.69 213.09 158.11 11.17 169.28

Totaltradeaccountsreceivableandothers

69.55 0.46 70.01 80.38 0.43 80.81

Totaltradeaccountspayableandothers

29.80 2.57 32.37 32.27 0.69 32.96

Related Company Relationship DescriptionAmount

(Million Baht) Reasons

Dec 31, 2009 Dec 31, 2010

ThaicomPublic

Co.,Ltd.(THAICOM)

Telecommunication

satelliteservices

operator

SHINholds41.14%

sharesinthis

companywith

shareddirectors

-Salesandservices

income

-Expenses

-Tradeaccounts

receivableand

others

-Tradeaccounts

payableand

others

13.69

50.97

13.22

4.68

11.95

35.41

4.14

5.04

TheCompanyrented

transpondersonThaicom

satellites,whichistheonly

operatorinThailand.

-Uplinkandinternetleasedline

servicescharges

-IPSTARtechnicalservices

charges

-Uplinkandinternetleasedline

servicescharges

-IPSTARtechnicalservices

charges


Related Party Transactions In2009and2010,theCompanyanditssubsidiariesenteredintoanumberoftransactionswithrelatedpartiesthatmayhaveconflictsofinterestwiththeCompanyanditssubsidiaries.Theseconnectedtransactionsaroseintheordinarycourseofdoingbusinessandaccordingtonormaltradeconditions.SignificantrelatedtransactionsbetweentheCompany,itssubsidiaries,andrelatedcompaniesareasfollows:

Related Party Transactions that may lead to Conflicts of Interest

Summary of Transactions

SHIN CORPORATION GROUP



Dec 31, 2009 Dec 31, 2010

MIMOTechCompany

Limited(MMT)

Development

andproviding

informationfor

mobilephone

AISholds100%

sharesinthis

companywith

shareddirectors

-Salesandservices

income

-Tradeaccounts

receivableand

others

-Tradeaccounts

payableandothers

-

-

-

221.99

65.80

0.99

MMTisacompanyinthegroup

thatdevelopmentandproviding

informationformobilephone

(MobileContent).

-Revenuesharingonmobile

-Revenuesharingonmobile

-Callcentercancellation

charge

AdvancedInfo

ServicesPlc.(AIS)

Mobilephone

operator

SHINholds42.55%

sharesinthis

companywith

shareddirectors

-Salesandservices

income

-Otherincome

-Expenses

-Tradeaccounts

receivableand

others

-Tradeaccounts

payableandothers

261.40

0.06

15.35

55.33

4.00

154.55

2.47

16.42

9.83

3.97

TheCompanyusedmobile

phoneservicesfromAISand

providemobilecontentservices

viamobilephone.

-Monthlyinternetandrevenue

sharingonmobile

-Otherservicescharges

-Airtimeofmobilephoneand

SMSbroadcast

-Monthlyinternetservices

chargesandrevenuesharing

onmobile

-Airtimeofmobilephoneand

SMSbroadcast

Advanced

DataNetwork

Communication

Co.,Ltd.(ADC)

Telephoneline

rentalforinternet

connectionservices

provider

AISholds51%

sharesinthis

companywith

shareddirectors

-Salesandservices

income

-Otherincome

-Expenses

-Tradeaccounts

receivableandothers

- Tradeaccounts

payableandothers

0.52

-

111.18

0.10

17.83

0.60

1.01

81.34

0.06

17.07

Thetransactionswereforthe

Companytorentandconnect

telephonelinesindomesticof

internetconnectionservices.


charges

-Otherservicescharges

-Domesticconnectivity

forprovisioningofinternet

connectionservices


charges



connectionservices




Dec 31, 2009 Dec 31, 2010

SuperBroadband

NetworkCo.,Ltd.

(AWN)

Telephoneline

rentalforinternet

connectionservices

provider

AISholds100%

sharesinthis

companywith

shareddirectors

-Expenses

-Tradeaccounts

payableandothers

9.14

1.71

13.17

2.61

Thetransactionswereforthe

Companytorentandconnect

telephonelinesindomesticof

internetconnectionservices.



connectionservices



connectionservices

MatchBoxCo.,Ltd.

(SMB)

Advertisingagency

Shinholds99.96%

sharesinthis

companywith

shareddirector

-Salesandservices

income

-Expenses

-Tradeaccounts

receivableand

others

-Tradeaccounts

payableandothers

1.36

5.80

0.12

1.30

1.05

5.22

0.08

1.73

SMBisacompanyintheGroup

thatweuseitasouragentin

havingadvertisementinvarious

mediaforthecustomerstouse

ourservices.Thefeeswereat

themarketrate.


charges

-Advertisingexpenses

-Internetservicescharges

-Advertisingexpense

Otherrelated

companies

Theaffiliatesin

SHINGroupwith

shareddirectors

-Salesandservices

income

-Expenses

-Tradeaccounts

receivableand

others

-Tradeaccounts

payableandothers

3.73

4.96

0.78

0.28

1.75

6.55

0.47

0.85


charges

-Expensesforservicescharges

andothers


charges

-Serviceschargesandothers


Singapore Telecommunications Limited and Temasek Group



Dec 31, 2009 Dec 31, 2010

Singapore

Telecommunications

Limited(STC)

SingTelown14.18%

oftheCompany’s

sharecapital

-Salesandservices

income

-Expenses

-Tradeaccounts

receivableand

others

-Tradeaccounts

payableandothers

1.25

13.44

0.46

2.40

1.02

8.52

0.43

0.50

TheCompanyprovidesinternet

servicesandhasamonthly

basedservicescharge.Italso

operatestheinternational

connectivity.


chargesandserverco-location

-Internationalconnectivity


chargesandserverco-location


EquinixSingapore

Pte.Ltd.(EQX)

Subsidiaryof

Temasekgroup

-Expenses

-Tradeaccounts

payableandothers

2.25

0.17

2.65

0.19

TheCompanyprovidesinternet

servicesandhasamonthly

basedservicescharge.Italso

operatestheinternational

connectivity.




TheabovetransactionshavealreadybeenconsideredandapprovedbytheCompany’sauditcommitteeatthe2/2011meetingheldonFebruary15,2011withtheopinionthatsuchrelatedtransactionsatpresentarepartofnormalbusinessoperationswhichsupportthegroup’sbusinessandareinitsbestinterests.Consequently,thesaidtransactionsasperdetailsabovearenecessaryandreasonableandthereturnthereofisdeterminedinconsiderationofappropriatemarketpriceorcostplusprofit(CostPlus).

Connected Transaction Approval Procedure Intheconnectedtransactionapprovalprocedure,forthetransactionsthatarenormalbusinessoperations,suchasInternetservicesandtelephonelinerentalandetc.,theCompanywillsetupconditionsaccordingtonormalbusinesspracticeusingthemarketpricenormallychargedtogeneralcustomersoradeterminedpricetakingintoaccounttheactualcostincurredplusreasonableprofitwhichistheratechargedtogeneralcustomers.TheCompanywillhaveitsauditcommittee,oritsauditor,oraspecialistprovideanopiniononthereasonablenessofthetransactionandpricesuitability. Asforotherconnectedtransactions,theCompanywillsetupconditionsaccordingtonormalbusinesspracticeandthemarketpriceapplicabletogeneralcustomerswillbeused.Ifthemarketpriceisnotavailable,theCompanywillcauseanindependentexperttoobtainappropriatepriceandconditionforthebestbenefitsoftheCompanyanditsshareholders.Beforetakingsuchaction,theCompanyhastoobtainapprovalfromtheBoardofDirectorsorshareholdersasappropriate.TheCompanywillhaveitsauditcommittee,oritsauditor,oraspecialistprovideanopiniononthereasonablenessofthetransactionandpricesuitabilityinapprovingtheconnectedtransactiontosupportthedecisionoftheCompany’sBoardofDirectorsorshareholdersasthecasemaybe. TheCompanycomplieswiththeregulationsoftheSECandSEToninformationdisclosureofconnectedtransactions,acquisitionofmajorassetsoftheCompanyanditsaffiliates,andtheaccountingstandardsestablishedbyFederationofAccountingProfession.

Policies and Future Trend of Connected Transactions Itisprojectedthatconnectedtransactionsinthefuturewillstillconsistofnormalbusinessoperations.Futureconnectedtransactionsshallbeinaccordancewiththeaboveapprovalprocedure.

The Necessity and Reasonableness of Transactions

Transaction Description Price Policy

Revenuesfrommonthlyinternetservicesfees Atmarketprice

Revenuesfromtransponderservices,internetsubscriberlinefees,

andbroadbandlinkservicesfees

Costplusappropriatedprofits

Receivableandpayableinterest Atmarketprice

Revenuesandcostofagencyandothercommissionfees Costplusappropriatedprofits

TechnicalservicesfeesforIPSTARandoperatingcosts Atmarketprice

Costofservermaintenanceandoperatingcosts Atmarketprice

Telephonelinerentalfeesforprovisionofinternetconnection Atmarketprice

Advertisingfees,telephonecharges,computerprogramfees,

accountingprogramfeesandofficerentalfees

Atmarketprice

Spacerentalfeesandserverco-location,anddomainname

registrationfees

Atmarketprice

Communicationequipmentmaintenancefeesandcommunication

equipmentrentalfees

Atmarketprice



Management’s Discussion and Analysis: CSLOverview CSLoxInfoPublicCompanyLimited(“theCompany”)reportedaconsolidatednetprofitfor2010ofBaht400millionorequivalenttoBaht0.68pershare,anincreaseofBaht113millionor39%from2009.ThiswasduetothegrowthofInternetServicesBusinessandMobileContentBusiness,inparallelwithanefficientofcostandexpensescontroloftheCompany,andtherecognitionofdeferredtaxassetsofADVenturePlc(thesubsidiary)ofBaht36million. Inaddition,theCompanyreportedanetincomefortheseparatefinancialstatementfor2010ofBaht327millionorequivalenttoBaht0.55pershare.ThiswascomprisedofthenetprofitfromitsoperationsofBaht109millionanddividendreceivedfromsubsidiariesofBaht218million. AttheCSLBoardofDirectors’meetingheldon16February2011,theBoardofDirectorspassedaresolutiontorecommendtotheShareholders’AnnualGeneralMeeting,forthepaymentofdividendsfortheyear2010ofBaht0.25pershare.Theproposeddividendmustbeapprovedbytheshareholdersattheirmeetingwhichwillbeheldon30March2011.

Operating Results Overview Theconsolidatedfinancialstatementfortheyearending31December2010,comparedtotheconsolidatedfinancialstatementforthesameperiodofthepreviousyear

Total revenue from sales and services In2010,theCompanyearnedBaht2,677millionintotalrevenuefromsalesandservices,anincreaseofBaht91million,or4%,over2009.Detailsareasgivenbelow:

(Unit:MillionBaht)

2009 2010 Variance(%)

Revenuesfromsalesandservices 2,586 2,677 4

Otherincomes 28 24 (13)

Total revenue 2,614 2,701 3

Costofsalesandservice 1,458 1,440 (1)

SG&Aexpenses 765 722 (6)

Operating profit 391 539 38

Interestexpenses&Incometax 102 104 2

Net profit before extraordinary items 289 435 51

Extraordinaryitems(netofftax) - (34) 100

Gainofminorityinterest (2) (1) (50)

Net income 287 400 39

Earning per share (EPS) 0.49 0.68 39


1) Revenue from Internet Access In2010,therevenuefrominternetaccessserviceswasBaht1,541million,andincreaseofBaht90millionor6%from2009.Thedetailsareasfollows: •Revenuefromleasedlineserviceshadcontinuouslygrown.TheCompanyreportedrevenuefromleasedlineservicesfor2010ofBaht1,121million,anincreaseofBaht47millionor4%over2009,whichwasstoodatBaht1,074million. •RevenuefromInternetDataCenterServices(IDC)for2010wasBaht93million,anincreaseofBaht18millionor24%from2009,whichwasstoodatBaht75million.ThiscameasaresultoftheCompanyhavinganinitiative,puttingmoreeffortonemphasizingindevelopnewproductgroup(IThardwareandsolutions)toourexistingtargetcustomers. •RevenuefromBroadbandInternetServicesfor2010wasBaht144million,adecreaseofBaht55millionor28%from2009,whichwasstoodatBaht199million.Thiswasduetoanintensepricecompetitioninconsumermarket. •Revenuefromdialupfor2010wasBaht41million,adecreaseofBaht17millionor29%from2009,whichwasstoodatBaht58million.ThiswasduetochangesintechnologyandcustomerbehaviorthatfavoredmigrationtoHi-speedinternetservices. •Revenuefromotherservicesfor2010wasBaht124million,anincreaseofBaht101millionfrom2009,whichwasstoodatBaht23million.Thesharplygrowthofrevenueinthissegmentcausedby1)thegrowthofinternetequipment&solutionsales,duetotheCompanyhavinganinitiative,puttingmoreeffortonemphasizingindevelopnewproductgroup(IThardwareandsolutions)toourexistingtargetcustomersand,2)theCompanygotsomelargeprojectsinthisyear. •Revenuefromuplink/downlinkservicesfor2010wasBaht18million,adecreaseofBaht3millionor14%from2009,whichwasstoodatBaht21million.

2) Revenue from publishing the Thailand YellowPages In2010,theCompanyrecognizedrevenuefrompublishingtheThailandYellowPagesofBaht540million,adecreaseofBaht126millionor19%from2009,whichwasstoodatBaht666million.Thiswasresultedfromtheimpactofaneconomicandchangeinadvertisers’behaviorthatfavoredmigrationtoonlineandothermediachannel.

3) Revenue from Voice Info Services & Mobile Content Services In2010,theCompanyrecognizedrevenuefromVoiceInfoServices&MobileContentServicesamountingtoBaht406million,increasingbyBaht136millionor50%,comparedtoBaht270millionin2009duetoanincreaseinitscustomerswhichresultedfromanefficientmarketingplanandvariousproductofferings.

4) Revenue from Print Classified Business In2010,theCompanyrecognizedrevenuefromPrintClassifiedBusinessofBaht190million,adecreaseofBaht9millionor5%from2009,whichwasstoodatBaht199million.Thismainlycomesfromadecreaseofrevenuefrombooksales(magazines&pocketbooks).

Cost of sales and services In2010,theCompanyhadtotalcostsofBaht1,440million,aslightlydecreaseofBaht18millionor1%from2009,whichhadamountedtoBaht1,458million.Detailsareasgivenbelow:

1) Cost of Internet Access services In2010,costsassociatedwithinternetaccessserviceswasBaht1,053million,anincreaseofBaht37millionor4%from2009,whichwasstoodatBaht1,016million.Thiswascomprisedof:


•Costsfromtheinternetaccessservicesfor2010wasBaht1,043million,anincreaseofBaht39millionor4%from2009,whichwasstoodatBaht1,004million.Thismainlycomesfromthecostofsellingequipmentandsolutionsalesforcorporatecustomers. •Costfromuplink/downlinkservicesfor2010wasBaht10million,aslightlydecreasefrom2009,whichwasstoodatBaht12million.

2) Cost of publishing the Thailand YellowPages In2010,theCompanyrecognizedcostsofpublishingtheThailandYellowPagesamountingtoBaht199million,adecreaseofBaht35millionor15%from2009,whichwasstoodatBaht234million.Thisresultedfromefficienciesinprintingcostmanagementofthe2010ThailandYellowPagesBook,tooffsetadecreaseinitsrevenue.

3) Cost of Voice Info Services & Mobile Content Services In2010,theCompanyrecognizedcostsfromVoiceInfoServices&MobileContentServicesofBaht98million,adecreaseofBaht13millionor12%from2009,whichwasstoodatBaht111million.Thiswasduetoanefficientcostmanagement.

4) Cost of Print Classified Business In2010,theCompanyrecognizedcostsfromthePrintClassifiedBusinessofBaht90million,adecreaseofBaht7millionor7%from2009,whichwasstoodatBaht97million.Thisresultedfromefficienciesinprintingcostmanagement,tooffsetadecreaseinitsrevenue.

Selling and Administrative Expenses In2010,TheCompanyhadtotalsellingandadministrativeexpensesofBaht722million,adecreaseofBaht43millionor6%from2009,whichwasstoodatBaht765million.Detailsareasgivenbelow:

1) Selling and administrative expenses of Internet services In2010,thesellingandadministrativeexpensesofInternetserviceswasBaht324million,anincreaseofBaht13millionor4%from2009,whichwasstoodatBaht311millionfromadecreaseofgeneraladministrativeexpenses.

2) Selling and administrative expenses of publishing the Thailand YellowPages In2010,theCompanyrecognizedsellingandadministrativeexpensesforthepublishingoftheThailandYellowPagesofBaht252million,adecreaseofBaht55millionor18%from2009,whichwasstoodatBaht307million.ThisresultedfromefficienciesinSG&Acontrol,tooffsetadecreaseinitsrevenue.

3) Selling and administrative expenses of Voice Info Services & Mobile Content Services In2010,theCompanyrecognizedsellingandadministrativeexpensesforVoiceInfoServices&MobileContentServicesofBaht52million,aslightlyincreasefrom2009,whichwasstoodatBaht49million.

4) Selling and administrative expenses of Print Classified Business In2010,theCompanyrecognizedsellingandadministrativeexpensesfromprintclassifiedbusinessofBaht94million,slightlydecreasedfrom2009.

Extraordinary items (net off tax) In2010,theCompanyhadsomeextraordinaryexpensestotalingBaht34millionwhichwasconsistedof:- •Specialincentive,asarewardtoallstaffstotalingBaht19million(netoffincometax)


•SeverancepayforstaffsduetothereorganizationofTeleinfoMediaPlc.(asubsidiaryoftheCompany),amountingtoBaht15million

Gross profit and net profit from the operation In2010,theCompanyhadagrossprofitofBaht1,237million,anincreaseofBaht109millionor10%from2009,whichwasstoodatBaht1,128million.Moreover,thenetprofit(excludedtheextraordinaryitems)fortheyearending2010wasBaht434million,anincreaseofBaht147millionor51%from2009,whichwasamountedtoBaht287million.Thiswasdueto1)thecontinuousgrowthofInternetServicesBusiness(inmajorproductandIThardware&solutionssegment),and2)thebetterperformanceofMobileContentbusiness,whichwasresultedfromanefficientinmarketingplanandcostcontrol,andtherecognitionofdeferredtaxassetsofADVenturePlc(thesubsidiary)ofBaht36million.

Financial Position Overview Themajorassetcomponentscompriseofthefollowing:

Assets31 December 2009 31 December 2010

MB% of total

assets MB% of total

assets

Cashandcashequivalents 286 14 287 14

Tradeaccountsreceivableandaccruedincome 305 15 301 15

Inventories 91 5 117 6

Othercurrentassets 45 2 46 2

Total current assets 727 37 751 37

Property,plantandequipment 464 23 427 21

Goodwill 595 30 595 30

Deferredtaxassets 92 5 125 6

Othernon-currentassets 105 5 112 6

Total assets 1,983 100 2,010 100

Short-termloansfromfinancialinstitutions 30 2 - -

Tradeaccounts,otheraccountspayableandamountsduetorelatedparties

295 15 302 15

Currentportionoflong-termloanfromfinancialinstitutions 43 2 79 4

Unearnedincomeandadvancesreceivedfromcustomers 196 10 197 10

Othercurrentliabilities 128 6 112 6

Total current liabilities 692 35 690 35

Long-termloansfromfinancialinstitutions 234 11 155 7

Othernon-currentliabilities 9 1 10 1

Total liabilities 935 47 855 43

Total equity 1,048 53 1,155 57


Assets Attheendof2010,theCompanyhadtotalassetsofBaht2,010million,anincreaseofBaht27millionfrom2009.Detailsaregivenbelow. •TotalcurrentassetsincreasedbyBaht24millionor3%from2009.Thiswasmainlyduetoanincreaseofits inventoriesfromInternetServicesBusiness(IThardwaresellingtoourcustomers). •Property,plantandequipmentdecreasedbyBaht37millionor8%from2009.Thiswasmainlyduetothefully depreciatedequipmentthatwasstillinuseasat31December2010 •DeferredtaxassetsincreasedBaht33millionor36%from2009.Thiswasduetotherecognitionofdeferred taxassetsofADVenturePlc(thesubsidiary)

Liabilities and equity Liabilities Asof31December2010,theCompanyhadtotalliabilitiesofBaht855million,adecreaseofBaht80millionor 9%from2009.ThiswasmainlyduetotherepaymentofloanfromfinancialinstitutionoftheCompany.

Shareholder’s Equity Asof31December2010,theCompanyhadshareholders’equityofBaht1,155million,anincreaseofBaht107 millionor10%.Thiswasduetothefollowing: •Netprofitfortheyear2010ofBaht401million(includingminorityinterestsofBaht1million) •2009Dividendpayment(Baht0.27pershare)and2010interimdividend(Baht0.25pershare)totalingBaht 306million •CashreceivedfromsharecapitalwhichresultedfromtheexercisingoftherightsinpursuancewiththeESOP ProgramofBaht12million

However,Treasurysharesprogramwhichwasrunon9August2007(51.7millionshares)hadendedon22November2010,andtheBoardofDirectorofCSLhadpassedtheresolutiontoapprovenottoresaletheshares.TocomplywiththeMinistryregulationsonTreasuryStockRules,theCompanyhadwrittenoffitsrepurchasedsharesanddecreaseditspaid-upcapitalwiththeMinistryofCommerceonNovember26,2010.Thisaffectedtotheissuedandpaid-upsharecapitaloftheCompanybecametobe590.99millionshares(Baht0.25parpereach)orBaht147.75million.

Assets QualityAccounts Receivable Asof31December2010,theCompany’stradeaccountsreceivableandaccruednetincomewasBaht301millionorequivalentto15%oftotalassets.Thetradeaccountsreceivablecomprisedofthirdpartiesandrelatedparties,representing81%and19%oftotaltradeaccountsreceivable,respectively.Theaveragecollectionperioddecreased43daysin2009to41daysin2010.ThiswasduetoanefficientA/Rcollectionmanagement

Trade Accounts receivable, based on business segments, are as follows:-1) Internet Access Services Business Tradeaccountsreceivableconsistsoftwotypesofcustomer: 1)Individualcustomersequalto7%oftotaltradeaccountsreceivable,providedwithacredittermof30days. Averagecollectionperiodwas23daysin2010,comparedto26daysin2009


Over due period2009 2010

MB % MB %

Current 180 41 206 48

Lessthan90days 71 16 71 17

91-180days 39 9 25 6

180-360days 79 18 57 13

Over360days 70 16 71 16

Total account receivable 439 100 430 100

Lessallowancefordoubtfulaccounts (140) (32) (135) (31)

Net trade accounts receivable 299 68 295 69

2)Corporatecustomersandgovernmentagenciesequalto93%oftotaltradeaccountsreceivableprovided withacredittermof30-90days.Averagecollectionperiodwas36daysin2010,comparedto35days in2009.

2) Publishing the Thailand YellowPages Business Averagecollectionperiodin2010was111days(107daysin2009).TheCompany’scredittermpoliciesarebasedonthebillingofeachadvertiser. 1)Fullpaymentwithacredittermof30daysforadvertisersofotherYellowPages-BKKbook 2)ForadvertisersofYellowPages-BKKbooks 2.1)whichhasanamountoflessthanBaht35,000shallpayinfullamountwithacredittermof30days 2.2)whichhasanamountofequallyormorethanBaht35,000shallpayinfourinstallmentswithin120days

3) Voice Info Services & Mobile Content Averagecollectionperiodin2010was29days,roughlyequivalenttothatin2009,withacredittermof30days.

4) Print Classified Business Tradeaccountsreceivableconsistedoftwotypesofcustomer: 1)Individualcustomersfor2010wereequalto8oftotaltradeaccountsreceivable,providedwithacreditterm of30-60days.Averagecollectionperiodwas17daysin2010(2009=23days) 2)Corporatecustomersandgovernmentagenciesfor2010wasequalto92oftotaltradeaccountsreceivable, providedwithacredittermof45-120days.Averagecollectionperiodwas62daysin2010(2009=67days)

Aging analyses for trade accounts receivable were as follows:


Basedonthetableabove,theCompanyhadnettradeaccountsreceivablefromthirdpartiesasat31December2010ofBaht430million.Inaddition,theCompanyhadanallowancefordoubtfulaccountsofBaht135millionor31%oftotaltradeaccountsreceivable.Theallowancecoveredthetradeaccountsreceivableover360days,whichstandsatBaht71millionasof31December2010.

Liquidity TheCompany’sliquidityremainedahealthystatus.Asat31December2010,theCompany’scurrentratioincreasedslightlyfrom1.05timesin2009to1.09timesin2010becauseofhighercurrentassetsasaresultofanincreaseofinventoryfromInternetServicesBusiness.Moreover,theCompanycanmaintainquickratioasthesameleveloflastyearat0.85times. TheCompanyhadcashflowfromoperationsforyear2010ofBaht498million,anincreaseof11%overthesameperiodoflastyear.Thiswasdueto1)thecontinuousgrowthofInternetServicesBusiness(inmajorproductandIThardware&solutionssegment),and2)thebetterperformanceofMobileContentbusiness,whichwasresultedfromanefficientinmarketingplanandcostcontrol.Furthermore,theCompany’scashflowfrominvestmentforyear2010wasdeclinedtoBaht114millionin2010,adecreaseof60%from2009whichwasstoodatBaht287million.Thiswasduetoahugeinvestmentininternetnetworksformedialeasedlineservicesinordertoservethegrowthofourtargetcustomersandmoreefficientinnetworkcostmanagement. Moreover,theCompanyalsopaiddividendstoourshareholderstotalingBaht306millionorBaht0.52pershare.During2010,theCompanyhadloanrepaymentsfromfinancialinstitutionsamountedtoBaht153millionandhadadditionalloansofBaht80million.ThiscausedtheCompanytohaveoutstandingloansrepresentedintheconsolidatedfinancialstatementasof31December2010ofBaht234million.

Board of Directors’ Responsibility for Financial Reporting

TheBoardofDirectorsisresponsibleforCSLoxInfoPublicCompanyLimited’sfinancialstatementsandCSLoxInfoPublicCompanyLimitedanditssubsidiaries’consolidatedfinancialstatements,includingthefinancialinformationpresentedinthisannualreport.Theaforementionedfinancialstatementsarepreparedinaccordancewithgenerallyacceptedaccountingprinciples,usingcarefuljudgmentandthebestestimations.ImportantinformationisadequatelyandtransparentlydisclosedinthenotestofinancialstatementstotheCompany’sshareholdersandinvestors. TheBoardofDirectorshasprovidedandmaintainedariskmanagementsystemandappropriateandefficientinternalcontrolstoensurethataccountingrecordsareaccurate,reliableandadequatetoprotectitsassetsanduncoveranyweaknessesthatmaybepresentedinordertopreventfraudormateriallyirregularoperations. Inthisregard,theBoardofDirectorshasappointedanAuditCommitteetoberesponsibleforreviewingtheaccountingpolicyand financial reports, internalcontrols, internalauditand riskmanagementsystem.TheAuditCommitteehasalsoreviewedadisclosureofrelatedpartytransactions.AlltheircommentsontheseissueshavebeenincludedintheAuditCommitteeReportwhichispresentedinthisannualreport. ThefinancialstatementsoftheCompanyandtheconsolidatedfinancialstatementsofCompanyanditssubsidiarieshavebeenexaminedbyanexternalauditor,KPMGPhoomchaiAuditLimited.Toconducttheauditsandexpressanopinioninaccordancewithgenerallyacceptedauditingstandards,theauditorwasprovidedwithalloftheCompany’srecordsandrelateddataasrequested.Theauditor’sopinionispresentedintheauditor’sreportaspartofthisannualreport. TheBoardofDirectorsbelievesthattheCompany’soverallinternalcontrolsystemissufficientlyeffectivetoensuretheintegrityandreliabilityofCSLoxInfoPublicCompanyLimited’sfinancialstatementsandCSLoxInfoPublicCompanyLimitedanditssubsidiaries’consolidatedfinancialstatementsfortheyearendedDecember31,2010.TheBoardofDirectorsalsobelievesthatallthesefinancialstatementshavebeenpreparedinaccordancewithgenerallyacceptedprinciplesandrelatedregulations.

(Professor Wongkulpat Snidvongs na Ayudyha)Chairman of the Board of Directors

(Mr. Arak Chonlatanon)Chairman of the Executive Committee


Audit report of Certified Public AccountantTo the shareholders of CS LoxInfo Public Company Limited

Ihaveauditedtheaccompanyingconsolidatedandseparatebalancesheetsasat31December2010and2009,andtherelatedstatementsofincome,changesinequityandcashflowsfortheyearsthenendedofCSLoxInfoPublicCompanyLimitedanditssubsidiaries,andofCSLoxInfoPublicCompanyLimited,respectively.TheCompany’smanagementisresponsibleforthecorrectnessandcompletenessofinformationpresentedinthesefinancialstatements.Myresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonmyaudits. Iconductedmyauditsinaccordancewithgenerallyacceptedauditingstandards.ThosestandardsrequirethatIplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements.Anauditalsoincludesassessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallfinancialstatementpresentation.Ibelievethatmyauditsprovideareasonablebasisformyopinion. Inmyopinion,theconsolidatedandseparatefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,thefinancialpositionsasat31December2010and2009andtheresultsofoperationsandcashflowsfortheyearsthenendedofCSLoxInfoPublicCompanyLimitedanditssubsidiaries,andofCSLoxInfoPublicCompany

Limited,respectively,inaccordancewithgenerallyacceptedaccountingprinciples.

(Winid Silamongkol)Certified Public AccountantRegistration No. 3378

KPMG Phoomchai Audit Ltd.Bangkok16 February 2011


Note

Consolidatedfinancial statements (in Baht)

Separatefinancial statements (in Baht)

2010 2009 2010 2009

Assets

Current assets

Cashandcashequivalents 5 287,444,171 286,110,003 103,770,911 106,908,643

Tradeaccountsreceivableand

accruedincome 6 300,708,682 304,761,001 165,394,271 155,392,969

Amountsduefromrelatedparties 4 177,888 32,742 - -

Inventories 7 116,544,268 91,104,902 44,395,704 9,798,189

Othercurrentassets 8 45,862,518 45,324,360 20,166,536 19,455,757

Total current assets 750,737,527 727,333,008 333,727,422 291,555,558

Non-current assets

Investmentsinsubsidiaries 9 - - 658,365,473 658,365,473

Otherlong-terminvestments 10 1,801,232 1,791,158 - -

Property,plantandequipment 11 427,227,863 464,073,329 385,230,800 423,611,042

Intangibleassets 12 69,013,164 69,404,619 49,113,613 47,178,745

Goodwill 13 594,920,901 594,920,901 --

Deferredtaxassets 14 125,453,392 91,826,057 24,920,051 23,763,422

Othernon-currentassets 41,008,093 33,384,964 29,568,751 21,574,890

Total non-current assets 1,259,424,645 1,255,401,028 1,147,198,688 1,174,493,572

Total assets 2,010,162,172 1,982,734,036 1,480,926,110 1,466,049,130


Balance sheetsCS LoxInfo Public Company Limited and its Subsidiaries

As at 31 December 2010 and 2009

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

Note



2010 2009 2010 2009

Liabilities and equity

Current liabilities

Short-termloansfromfinancial

institutions 15 - 30,000,000 - 30,000,000

Tradeaccountspayable 16 280,758,845 280,565,971 235,906,275 216,795,969

Amountsduetorelatedparties 4 5,008,975 2,575,741 - -

Currentportionoflong-termloans

fromfinancialinstitutions 15 79,180,000 43,340,000 76,680,000 38,340,000

Currentportionoffinancelease

liabilities 15 536,992 814,341 481,351 170,933

Unearnedincomeandadvancesreceived

fromcustomers 196,532,424 195,753,372 107,979,973 91,427,134

Incometaxpayable 2,582,248 20,235,796 - -

Othercurrentliabilities 17 125,451,835 118,295,446 63,383,313 50,001,903

Total current liabilities 690,051,319 691,580,667 484,430,912 426,735,939

Non-current liabilities

Long-termloansfromfinancial

institutions 15 154,980,000 234,160,000 154,980,000 231,660,000

Financeleaseliabilities 15 2,953,882 1,434,799 2,007,882 433,159

Othernon-currentliabilities 6,762,015 7,393,505 6,412,442 7,046,130

Total non-current liabilities 164,695,897 242,988,304 163,400,324 239,139,289

Total liabilities 854,747,216 934,568,971 647,831,236 665,875,228





Note



2010 2009 2010 2009





Liabilities and equity

Equity

Sharecapital 18

Authorised share capital 154,978,609 168,635,619 154,978,609 168,635,619

Issuedandpaid-upsharecapital 148,185,919 159,839,887 148,185,919 159,839,887

Treasuryshares 19 - (183,313,462) - (183,313,462)

Advancedreceiptsforshare

subscription 323,614 - 323,614 -

Additionalpaid-incapital

Premiumonordinaryshares 20 458,626,834 448,043,411 458,626,834 448,043,411

Retainedearnings

Appropriated

Legalreserve 31,364,288 31,364,288 31,364,288 31,364,288

Treasurysharesreserve 19 - 183,313,462 - 183,313,462

Unappropriated 505,304,785 398,691,506 194,594,219 160,926,316

Total equity attributable to equity

holders of the Company 1,143,805,440 1,037,939,092 833,094,874 800,173,902

Minority interests 11,609,516 10,225,973- -

Total equity 1,155,414,956 1,048,165,065 833,094,874 800,173,902

Total liabilities and equity 2,010,162,172 1,982,734,036 1,480,926,110 1,466,049,130

Note



2010 2009 2010 2009


Statements of incomeCS LoxInfo Public Company Limited and its Subsidiaries

For the years ended 31 December 2010 and 2009


Income 4

Revenuefromsaleofgoodsand

renderingofservices 2,676,969,265 2,586,197,959 1,547,042,695 1,461,687,515

Dividendincome 9 - - 218,128,650 157,440,586

Netforeignexchangegain 1,357,413 1,593,680 682,198 522,411

Otherincome 22 22,894,934 26,227,746 4,432,157 9,892,796

Total income 2,701,221,612 2,614,019,385 1,770,285,700 1,629,543,308

Expenses 4

Costofsaleofgoodsandrendering

ofservices 1,440,441,533 1,457,651,021 1,057,596,051 1,023,656,190

Sellingexpenses 125,814,314 139,052,430 57,482,481 57,203,768

Administrativeexpenses 625,780,680 608,352,054 264,523,292 243,149,011

Managementbenefitexpenses 18,125,852 17,803,351 18,125,852 17,803,351

Total expenses 2,210,162,379 2,222,858,856 1,397,727,676 1,341,812,320

Profit before finance costs and income

tax expense 491,059,233 391,160,529 372,558,024 287,730,988

Financecosts 25 (14,089,197) (17,747,056) (14,408,525) (17,095,657)

Profit before income tax expense 476,970,036 373,413,473 358,149,499 270,635,331

Incometaxexpense 26 (75,605,385) (84,441,577) (31,115,750) (28,867,108)

Profit for the year 401,364,651 288,971,896 327,033,749 241,768,223

Profitattributableto:

EquityholdersoftheCompany 399,981,108 287,261,685 327,033,749 241,768,223

Minorityinterest 1,383,543 1,710,211 - -

Profit for the year 401,364,651 288,971,896 327,033,749 241,768,223

Earnings per share 27

Basic 0.68 0.49 0.55 0.42

Diluted 0.68 0.49 0.55 0.41


Note

Consolidated financial statements (in baht)

Issued and

paid-upshare capital

TreasuryShares

Advancedreceiptsfor share

subscription

Additionalpaid-in capital

Retained earningsTotal

equityattributable

to equityholders of the

Company

Minorityinterests

Total equity

sharepremium

Legalreserve

Treasurysharesreserve

Unappro-priated

Balance at 1 January 2009 157,346,826 (183,313,462) - 426,946,105 31,364,288 183,313,462 320,145,460 935,802,679 8,515,762 944,318,441

Profitfortheyear - - - - - - 287,261,685 287,261,685 1,710,211 288,971,896

Totalrecognisedincome

andexpense 157,346,826(183,313,462) - 426,946,105 31,364,288 183,313,462 607,407,1451,223,064,364 10,225,9731,233,290,337

Dividends 28 ื - - - - - - (208,715,639)(208,715,639) - (208,715,639)

Issueofordinaryshares 18 2,493,061 - - 21,097,306 - - - 23,590,367 - 23,590,367

Balance at 31 December 2009 159,839,887 (183,313,462) - 448,043,411 31,364,288 183,313,462 398,691,506 1,037,939,092 10,225,973 1,048,165,065

Balance at 1 January 2010 159,839,887 (183,313,462) - 448,043,411 31,364,288 183,313,462 398,691,506 1,037,939,092 10,225,973 1,048,165,065

Profitfortheyea - - - - - - 399,981,108 399,981,108 1,383,543 401,364,651


andexpense 159,839,887(183,313,462) - 448,043,411 31,364,288 183,313,462 798,672,6141,437,920,200 11,609,5161,449,529,716

Dividends 28 - - - - - - (306,292,829)(306,292,829) - (306,292,829)

Issueofordinaryshares 18 1,271,032 - - 10,583,423 - - - 11,854,455 - 11,854,455

Reductionofordinaryshares 18 (12,925,000) - - - - - 12,925,000 - - -


subscription - - 323,614 - - - - 323,614 - 323,614

Cancellationoftreasuryshares 19 - 183,313,462 - - - (183,313,462) - - - -

Balance at 31 December 2010 148,185,919 - 323,614 458,626,834 31,364,288 - 505,304,785 1,143,805,440 11,609,516 1,155,414,956

Statements of changes in equityCS LoxInfo Public Company Limited and its Subsidiaries




Note

Separate financial statements (in baht)

Issued andpaid-up

share capital

TreasuryShares

Advancedreceiptsfor share

subscription

Additionalpaid-in capital

Retained earningsTotal equityattributable

to equityholders of the

Company

sharepremium

Legalreserve

Treasurysharesreserve

Unappro-priated

Balance at 1 January 2009 157,346,826 (183,313,462) - 426,946,105 31,364,288 183,313,462 127,872,592 743,529,811

Profitfortheyear - - - - - - 241,768,223 241,768,223


andexpense 157,346,826 (183,313,462) - 426,946,105 31,364,288 183,313,462 369,640,815 985,298,034

Dividends 28 - - - - - - (208,714,499) (208,714,499)

Issueofordinaryshares 18 2,493,061 - - 21,097,306 - - - 23,590,367

Balance at 31 December 2009 159,839,887 (183,313,462) - 448,043,411 31,364,288 183,313,462 160,926,316 800,173,902

Balance at 1 January 2010 159,839,887 (183,313,462) - 448,043,411 31,364,288 183,313,462 160,926,316 800,173,902

Profitfortheyear - - - - - - 327,033,749 327,033,749


andexpense 159,839,887 (183,313,462) - 448,043,411 31,364,288 183,313,462 487,960,065 1,127,207,651

Dividends 28 - - - - - - (306,290,846) (306,290,846)

Issueofordinaryshares 18 1,271,032 - - 10,583,423 - - - 11,854,455

Reductionofordinaryshares 18 (12,925,000) - - - - - 12,925,000 -


subscription - - 323,614 - - - - 323,614

Cancellationoftreasuryshares 19 - 183,313,462 - - - (183,313,462) - -

Balance at 31 December 2010 148,185,919 - 323,614 458,626,834 31,364,288 - 194,594,219 833,094,874

Statements of changes in equityCS LoxInfo Public Company Limited and its Subsidiaries



Note



2010 2009 2010 2009

Cash flows from operating activities

Profitfortheyear 401,364,651 288,971,896 327,033,749 241,768,223

Adjustments for

Depreciationandamortisation 159,883,286 176,739,692 134,003,090 128,547,352

Interestincome (2,504,434) (3,303,576) (985,448) (1,029,848)

Financecosts 14,089,197 17,747,056 14,408,525 17,095,657

Unrealisedgainonexchange (40,240) (100,803) (40,240) (100,803)

Dividendincome4-- (218,128,650) (157,440,586)

Doubtfuldebtsexpense 51,254,820 79,737,933 3,303,459 5,999,443

Allowancefordevaluationofinventory 63,045 505,044 29,306 216,518

Lossondisposalofproperty,plant

andequipment 7,608 3,293,371 207,450 3,323,756

Lossondisposalofintangibleassets 4,582 - 4,582 -

Write-offofwithholdingtax 52,980 14,001 - -

Incometaxexpense 75,605,386 84,441,577 31,115,750 28,867,108

699,780,881 648,046,191 290,951,573 267,246,820

Changes in operating assets and liabilities

Tradeaccountsreceivableandaccruedincome (47,202,501) (72,911,342) (13,304,762) (3,243,762)

Amountsduefromrelatedparties (145,146) (1,542) - -

Inventories (25,502,411) 6,683,666 (34,626,823) 2,455,821

Othercurrentassets (545,870) 17,394,175 (710,777) 5,951,376

Othernon-currentassets (1,006,742) 6,045,290 (291,999) 6,375,782

Tradeaccountspayableandaccruedexpenses (1,626,965) 201,652 27,874,173 (4,874,591)

Amountsduetorelatedparties 2,433,233 (907,599) - -

Unearnedincomeandadvancesreceived

fromcustomers 779,053 (4,154,431) 16,552,839 (3,232,568)

Othercurrentliabilities 4,918,007 (18,333,765) 1,278,592 (17,504,460)

Othernon-currentliabilities (631,489) (1,417,612) (633,688) (1,436,813)

Refundablewithholdingtax 4,024,014 12,531,436 - 97,937

Incometaxpaid (137,579,652) (146,625,307) (39,974,241) (64,444,428)

Net cash provided by operating activities 497,694,412 446,550,812 247,114,887 187,391,114


Statements of cash flowsCS LoxInfo Public Company Limited and its Subsidiaries



Note



2010 2009 2010 2009

Cash flows from investing activities

Interestreceived 2,512,147 3,266,585 985,448 1,008,458

Dividendsreceived - - 218,128,650 157,440,586

Purchaseofproperty,plantandequipment (105,285,356) (251,177,583) (82,311,109) (239,883,339)

Saleofproperty,plantandequipment 1,212,494 2,024,053 270,055 1,136,308

Short-termloantorelatedparty - - - 3,000,000

Decreaseinotherlong-terminvestment (10,073) (46,520) - -

Purchaseofintangibleassets (12,471,398) (40,747,424) (10,333,668) (36,831,467)

Net cash provided by (used in) investing activities (114,042,186) (286,680,889) 126,739,376 (114,129,454)

Cash flows from financing activities

Interestpaid (14,089,197) (17,747,056) (14,408,525) (17,095,657)

Dividendspaidtoequityholders

oftheCompany (306,292,829) (364,689,833) (306,290,846) (364,688,694)

Financeleasepayments (814,341) (952,532) (170,933) (54,786)

Proceedsfromborrowings - 290,000,000 80,000,000 290,000,000

Repaymentofborrowings (73,340,000) (322,500,000) (148,340,000) (320,000,000)

Advancedreceiptsforsharesubscription 323,614 - 323,614 -

Proceedsfromissueofordinaryshares 1,271,032 2,493,062 1,271,032 2,493,062

Increaseinsharepremium 10,583,423 21,097,306 10,583,423 21,097,306

Net cash used in financing activities (382,358,298) (392,299,053) (377,032,235) (388,248,769)





Note



2010 2009 2010 2009

Net increase (decrease) in cash

and cash equivalents 1,293,928 (232,429,130) (3,177,972) (314,987,109)

Cashandcashequivalents

atbeginningofyear 286,110,003 518,438,330 106,908,643 421,794,949

Effectofexchangeratechangeson

balancesheldinforeigncurrencies 40,240 100,803 40,240 100,803

Cash and cash equivalents at end of year 287,444,171 286,110,003 103,770,911 106,908,643

Non-cash transactions

Acquisitionsofequipmentthroughcredit 11,959,377 11,507,040 6,041,962 2,703,012

Acquisitionsofintangibleassets

throughcredit 3,945,887 2,799,120 - 2,459,117





Note Contents

1 Generalinformation

2 Basisofpreparationofthefinancialstatements

3 Significantaccountingpolicies

4 Relatedpartytransactionsandbalances

5 Cashandcashequivalents

6 Tradeaccountsreceivableandaccruedincome

7 Inventories

8 Othercurrentassets

9 Investmentsinsubsidiaries

10 Otherlong-terminvestments

11 Property,plantandequipment

12 Intangibleassets

13 Goodwill

14 Deferredtax

15 Interest-bearingliabilities

16 Tradeaccountspayable

17 Othercurrentliabilities

18 Sharecapital

19 Treasurysharesandtreasurysharesreserve

20 Additionalpaid-incapitalandreserves

21 Segmentinformation

22 Otherincome

23 Employeebenefitexpenses

24 Expensesbynature

25 Financecosts

26 Incometaxexpense

27 Earningspershare

28 Dividends

29 Financialinstruments

30 Commitmentswithnon-relatedparties

31 Eventsafterthereportingperiod

32 ThaiFinancialReportingStandards(TFRS)notyetadopted


Notes to the financial statementsCS LoxInfo Public Company Limited and its Subsidiaries


Type of license Issued Date Period

Calculated revenue used for the fee payment to NTC

(in thousand Baht)

2010 2009

InternetOperationLicenseTypeI 8September2009 5years - -

TelecomOperationLicenseTypeI 11October2009 5years - -

InternetOperationLicenseTypeII 26April2007 5years 47,144 24,540

TelecomOperationLicenseTypeIII 20December2007 15years 5,442 4,471


Notes to the financial statementsCS LoxInfo Public Company Limited and its Subsidiaries


These notes form an integral part of the financial statements.

The financial statements were authorised for issue by the Board of Directors on 16 February 2011.

1. General information

CSLoxinfoPublicCompanyLimited,the“Company”,isincorporatedinThailandandhasitsregisteredofficeat414PhaholyothinRoad,SamsenNai,Phayathai,Bangkok10400. TheCompanywaslistedontheStockExchangeofThailandinApril2004. TheCompany’smajorshareholdersduringthefinancialyearwereDTVServiceCo.,Ltd.,asubsidiaryofThaicomPublicCompanyLimited,incorporatedinThailand(42.19%shareholding)andSingaporeTelecommunicationsLimited,incorporatedinSingapore(14.18%shareholding). TheprincipalbusinessesoftheCompanyanditssubsidiaries(“theGroup”)aretheprovisionofinternetdatacentreservices,internet,satelliteuplink-downlinkservicesfordomesticandinternationalcommunications,printingandpublishingoftelephonedirectoriesbusinessesandprovidingsub-advertisementandclassifiedservicesandmobilecontents. TheCompanyenteredintoconcessionagreementswithCATTelecomPublicCompanyLimited(“CAT”)foraperiodof22yearsfrom9August1994to8August2016toprovidesatelliteuplink-downlinkandsatelliteinternetservices. TheNationalTelecommunicationsCommission(“NTC”)hascurrentresponsibilityforgrantinglicensestoprovideinternetaccessservicesinThailand.TheCompanyoperatesthebusinesstoprovideinternetandtelecommunication

servicesunderlicensesgrantedbyNTCasfollows:

IncomewhichcalculatedforfeechargeofNTC,consistoftheannualfeechargeforlicensesandfeechargeforNTC’sUniversalServiceObligationFund(USO).

AccordingtotheconditionsspecifiedbyNTC,iftheauthorisedlicenseeisnotinsignificantviolationofthe

conditionsspecifiedinthelicense,NTCwillconsiderrenewingthelicenseasnormalprocedure.

Name of the entity Type of businessCountry of

incorporationOwnership interest (%)

2010 2009

Former no. Revised no. Topic

Direct subsidiaries

TeleinfoMediaPublic Publishingtelephone Thailand 100.00 100.00

CompanyLimited directoriesandadvertising

ADVenturePublicCompanyLimited Providingmobilecontents Thailand 100.00 100.00

WattaClassifiedsCompanyLimited Conductingclassifiedand Thailand 60.00 60.00

printingdirectoriesbusiness

Indirect subsidiaries

ShineedotcomCo.,Ltd. Inprocessofliquidation Thailand 100.00 100.00

HunsaDotComCompanyLimited Banneradvertising Thailand 100.00 100.00

SodamagCorpCompanyLimited Liquidated Thailand - 100.00

TAS11 TAS101 DoubtfulAccountandBadDebts

TAS26 TAS102 IncomeRecognitionForRealEstateBusiness

TAS27 TAS103 DisclosuresintheFinancialStatementsofBanks

andSimilarFinancialInstitutions

TAS34 TAS104 AccountingforTroubledDebtRestructuring

TAS40 TAS105 AccountingforInvestmentinDebtandEquitySecurities

TAS42 TAS106 AccountingforInvestmentCompanies

TAS48 TAS107 FinancialInstrumentsDisclosureandPresentation


DetailsoftheCompany’ssubsidiariesasat31December2010and2009wereasfollows:

2. Basis of preparation of the financial statements

ThefinancialstatementsissuedforThaireportingpurposesarepreparedintheThailanguage.ThisEnglishtranslationofthefinancialstatementshasbeenpreparedfortheconvenienceofreadersnotconversantwiththeThailanguage. ThefinancialstatementsarepreparedandpresentedinThaiBaht.AllfinancialinformationpresentedinThaiBahthasbeenroundedinthenotestothefinancialstatementstothenearestthousandunlessotherwisestated.Theyarepreparedonthehistoricalcostbasisexceptasstatedintheaccountingpolicies. The financial statementsareprepared inaccordancewith Thai Financial Reporting Standards (“TFRS”);guidelinespromulgatedbytheFederationofAccountingProfessions(“FAP”);applicablerulesandregulationsoftheThaiSecuritiesandExchangeCommission;andwithgenerallyacceptedaccountingprinciplesinThailand.

During2010,theFAPannouncedthere-numberingofthefollowingTFRS:


TheGrouphasadoptedtherevisedFrameworkforthePreparationandPresentationofFinancialStatements(revised2009),whichwasissuedbytheFAPduring2010andeffectiveon26May2010.Theadoptionoftherevisedframeworkdoesnothaveanymaterialimpactontheconsolidatedorseparatefinancialstatements. TheFAPhasissuedduring2010anumberofnewandrevisedTFRSwhicharenotcurrentlyeffectiveandhavenotbeenadoptedinthepreparationofthesefinancialstatements.Thesenewandrevisedstandardsandinterpretationsaredisclosedinnote32. ThepreparationoffinancialstatementsinconformitywithTFRSrequiresmanagementtomakejudgements,estimatesandassumptionsthataffecttheapplicationofpoliciesandreportedamountsofassets,liabilities,incomeandexpenses.Actualresultsmaydifferfromestimates. Estimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichestimatesarerevisedandinanyfutureperiodsaffected. Informationaboutsignificantareasofestimationuncertaintyandcriticaljudgementsinapplyingaccountingpoliciesthathavethemostsignificanteffectontheamountrecognisedinthefinancialstatementsisincludedinthefollowingnotes:

Note6 Allowancefordoubtfulaccounts Note7 Allowanceforobsoleteinventories Note9and13 Measurementoftherecoverableamountsofcash-generatingunits containinginvestmentsinsubsidiariesandgoodwill Note11 Utilisationofplantandequipment Note12 Utilisationofintangibleassets Note26 Utilisationoftaxlosses

Note29 Valuationoffinancialinstruments

3. Significant accounting policies

(a) Basis of consolidation TheconsolidatedfinancialstatementsrelatetotheCompanyanditssubsidiaries(togetherreferredtoasthe“Group”).

Business combinations Businesscombinationsareaccountedforunderthepurchasemethod.Thecostofanacquisitionismeasuredatthefairvalueoftheassetsgiven,equityinstrumentsissuedandliabilitiesincurredorassumedatthedateofexchange,pluscostsdirectlyattributabletotheacquisition. BusinesscombinationsofentitiesorbusinessesundercommoncontrolareaccountedforusingamethodsimilartothepoolingofinterestmethodandinaccordancewiththeGuidelineissuedin2009bytheFAP.

Subsidiaries SubsidiariesareentitiescontrolledbytheGroup.ControlexistswhentheGrouphasthepower,directlyorindirectly,togovernthefinancialandoperatingpoliciesofanentitysoastoobtainbenefitsfromitsactivities.Thefinancialstatementsofsubsidiariesareincludedintheconsolidatedfinancialstatementsfromthedatethatcontrolcommencesuntilthedatethatcontrolceases.TheaccountingpoliciesofsubsidiarieshavebeenchangedwherenecessarytoalignthemwiththepoliciesadoptedbytheGroup.

Transactions eliminated on consolidation Intra-groupbalancesandtransactions,andanyunrealisedincomeorexpensesarisingfromintra-group

transactions,areeliminatedinpreparingtheconsolidatedfinancialstatements.


(b) Foreign currenciesForeign currency transactions TransactionsinforeigncurrenciesaretranslatedtoThaiBahtattheforeignexchangeratesrulingatthedatesofthetransactions. MonetaryassetsandliabilitiesdenominatedinforeigncurrenciesatthereportingdatearetranslatedtoThaiBahtattheforeignexchangeratesrulingatthatdate.Foreignexchangedifferencesarisingontranslationarerecognisedinthestatementofincome. Non-monetaryassetsandliabilitiesmeasuredatcostinforeigncurrenciesaretranslatedtoThaiBahtusingtheforeignexchangeratesrulingatthedatesofthetransactions.

(c) Derivative financial instruments TheGroupusesfinancialinstrumentsthatmanageexposuretofluctuationsinforeigncurrencyexchangerate.Theseinstruments,whichmainlycompriseforwardforeigncurrencycontracts,arerecordedinthefinancialstatementsonthecontractdate.Thepurposeoftheseinstrumentsistomanagerisk. ForwardforeignexchangecontractsprotecttheGroupfromfluctuationsinexchangeratesbyestablishingtherateatwhichaforeigncurrencyassetorliabilitywillbesettled.Forwardcontractsarerecordedasforwardcontractsreceivableandpayableoninception,andaretranslatedattheyearendexchangerate.Unrealisedgainsorlossesontransactionsarerecognisedinthestatementofincome.Premiumsordiscountsareamortisedinthestatementofincomeonastraight-linebasisoverthecontractperiod.

(d) Cash and cash equivalents Cashandcashequivalentsinthestatementsofcashflowscomprisecashbalances,calldepositsandhighlyliquidshort-terminvestments.

(e) Trade and other accounts receivable Tradeandotheraccountsreceivablearestatedattheirinvoicevaluelessallowancefordoubtfulaccounts. The allowance for doubtful accounts is assessed primarily on analysis of payment histories and futureexpectationsofcustomerpayments.Baddebtsarewrittenoffwhenincurred.

(f) Inventories Inventoriesarestatedatthelowerofcostandnetrealisablevalue. Costiscalculatedusingthefirstinfirstoutprinciple,andcomprisesallcostsofpurchase,costsofconversionandothercostsincurredinbringingtheinventoriestotheirpresentlocationandcondition.Inthecaseoffinishedgoods andwork-in-progress, cost includes an appropriate share of production overheads based on normaloperations,butexcludesborrowingcosts. Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcoststocompleteandtomakethesale. Anallowanceismadeforalldeteriorated,damaged,obsoleteandslow-movinginventories.

(g) InvestmentsInvestments in subsidiaries InvestmentsinsubsidiariesintheseparatefinancialstatementsoftheCompanyareaccountedforusingthecostmethod.


(h) Property, plant and equipmentOwnedassets Property,plantandequipmentarestatedatcostlessaccumulateddepreciation.

Leased assets LeasesintermsofwhichtheGroupsubstantiallyassumesalltheriskandrewardsofownershipareclassifiedasfinanceleases.Property,plantandequipmentacquiredbywayoffinanceleasesiscapitalisedatthelowerofitsfairvalueandthepresentvalueoftheminimumleasepaymentsattheinceptionofthelease,lessaccumulateddepreciation.Leasepaymentsareapportionedbetweenthefinancechargesandreductionoftheleaseliabilitysoastoachieveaconstantrateofinterestontheremainingbalanceoftheliability.Financechargesarechargeddirectlytothestatementofincome.

Depreciation Depreciationischargedtothestatementofincomeonastraight-linebasisovertheestimatedusefullivesofeachpartofanitemofproperty,plantandequipment.Theestimatedusefullivesareasfollows: Leaseholdimprovement 5-10 years Computerequipment 3-5 years Furniture,fixturesandofficeequipment 5-18 years Printingequipment 5 years Vehicles 5 years

Nodepreciationisprovidedonfreeholdlandorassetsunderconstructionandinstallation.

(i) Equipment under concession agreements Equipmentunderconcessionagreementsrepresentsinternetnetworks,servers,fiberopticnetworksandotheroperatingequipment,whichhasbeentransferredtoCATTelecomPublicCompanyLimitedunderconcessionagreements.Concessionassetsarestatedatthehistoricalcostlessaccumulatedamortisation.Theyareamortisedonastraight-linebasisovertheshorteroftheestimateduseful livesoftheseassets,rangingfromfivetotenyears,ortheremainingconcessionperiod.Concessionassetsarenotrevalued.Thecarryingamountofconcession

assetsisreviewedannuallyandadjustedforimpairmentwhereitisconsiderednecessary.

(j) Intangible assetsGoodwill GoodwillinabusinesscombinationrepresentstheexcessofthecostofacquisitionoverthefairvalueoftheGroup’sshareoftheidentifiablenetassetsacquired.NegativegoodwillinabusinesscombinationrepresentstheexcessofthefairvalueoftheGroup’sshareoftheidentifiablenetassetsacquiredoverthecostofacquisition.TheGrouphaschangeditsaccountingpolicyforgoodwillwitheffectfrom1January2008asfollows:

Acquisitionspriorto1January2008 Goodwillandnegativegoodwillwasstatedatcostfromthedateofinitialrecognitionandamortisedoveritsestimatedusefullifeof20years.On1January2008,theGroupdiscontinuedamortisationofgoodwill.Theremainingbalanceissubjecttotestingforimpairment,asdescribedinnote3(k).Negativegoodwillcarriedinthefinancialstatementsasat31December2007wasderecognisedbycreditingunappropriatedretainedearningson1January2008.

Acquisitionsonorafter1January2008 Goodwillismeasuredatcostlessaccumulatedimpairmentlosses.Goodwillistestedforimpairmentas

describedinnote3(k).Negativegoodwillisrecognisedimmediatelyinthestatementofincome.


Other intangible assets OtherintangibleassetsthatareacquiredbytheGroup,whichhavefiniteusefullives,arestatedatcostlessaccumulatedamortisationandimpairmentlosses.Otherintangibleassetsareamortisedinthestatementofincomeonastraight-linebasisovertheirestimatedusefullivesfromthedatethattheyareavailableforuse. Expenditure on purchased computer software is amortised over its useful life, which is estimated bymanagement,ofthreetotenyears.Fiberopticslicenseisamortisedovertheremainingconcessionperiod(endofthecontracton14June2021).Intangibleassetsarenotrevalued.Thecarryingamountofeachintangibleassetisreviewedannuallyandadjustedforimpairmentwhereitisconsiderednecessary.

(k) Impairment ThecarryingamountsoftheGroup’sassetsarereviewedateachreportingdatetodeterminewhetherthereisanyindicationofimpairment.Ifanysuchindicationexists,theassets’recoverableamountsareestimated.For goodwill, the recoverableamount is estimatedat each reportingdate, andasandwhen indicators ofimpairmentareidentified. Goodwillandotherintangibleassetswithindefiniteusefullives,andintangibleassetsnotyetavailableforuse,aretestedforimpairmentannuallyandasandwhenindicatorsofimpairmentareidentified. An impairment loss is recognised if thecarryingamountofanassetexceeds its recoverableamount.Theimpairmentlossisrecognisedinthestatementofincome.

Calculation of recoverable amount Therecoverableamountofanon-financialassetisthegreateroftheasset’svalueinuseandfairvaluelesscoststosell.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.Foranassetthatdoesnotgeneratecashinflowslargelyindependentofthosefromotherassets,therecoverableamountisdeterminedforthecash-generatingunittowhichtheassetbelongs.

Reversals of impairment Animpairmentlossinrespectofafinancialassetisreversedifthesubsequentincreaseinrecoverableamountcanberelatedobjectivelytoaneventoccurringaftertheimpairmentlosswasrecognised. Animpairment loss inrespectofgoodwill isnotreversed. Impairment lossesrecognisedinpriorperiodsinrespectofothernon-financialassetsareassessedateachreportingdateforany indicationsthatthe losshasdecreasedornolongerexists.Animpairmentlossisreversediftherehasbeenachangeintheestimatesusedtodeterminetherecoverableamount.Animpairmentlossisreversedonlytotheextentthattheasset’scarryingamountdoesnotexceedthecarryingamountthatwouldhavebeendetermined,netofdepreciation

oramortisation,ifnoimpairmentlosshadbeenrecognised.

(l) Lease agreementLeases - where the Group is the lessee LeasesofassetswheretheGroupassumessubstantiallyallthebenefitsandrisksofownershipareclassifiedasfinanceleases.Financeleasesarecapitalisedattheinceptionoftheleaseatthelowerofthefairvalueoftheleasedassetsorthepresentvalueoftheminimumleasepayments.Eachleasepaymentisallocatedtotheprincipalandtothefinancechargessoastoachieveaconstantrateonthefinancebalanceoutstanding.Thecorrespondingrentalobligations,netoffinancecharges,areincludedinotherpayables.Theinterestelementofthefinancechargeischargedtotheincomestatementsovertheleaseperiod.Thepropertyandequipmentacquiredunderfinanceleasingcontractsaredepreciatedovertheshorteroftheestimatedusefullifeoftheassetsortheleaseterm.However,ifthereisreasonablecertaintythatthelesseewillobtainownershipbytheendoftheleaseterm,depreciationiscalculatedovertheestimatedusefullifeoftheassets.


Leasesnottransferringasignificantportionoftherisksandrewardsofownershiptothelesseeareclassifiedasoperatingleases.Paymentsmadeunderoperatingleases(netofanyincentivesreceivedfromthelessor)arechargedtothestatementofincomeonastraight-linebasisovertheperiodofthelease. Whenanoperatingleaseisterminatedbeforetheleaseperiodhasexpired,anypaymentrequiredtobemadetothelessorbywayofpenaltyisrecognisedasanexpenseintheperiodinwhichterminationtakesplace.

Leases - where the Group is the lessor Assetsleasedoutunderoperatingleasesareincludedinpropertyandequipmentinthebalancesheet.Theyaredepreciatedovertheirexpectedusefullivesonabasisconsistentwithsimilarfixedassets.Rentalincomeisrecognisedonastraight-linebasisovertheleaseterm.

(m) Interest-bearing liabilities Interest-bearingliabilitiesarerecognisedinitiallyatfairvaluelessattributabletransactioncharges.Subsequenttoinitialrecognition,interest-bearingliabilitiesarestatedatamortisedcostwithanydifferencebetweencostandredemptionvaluebeingrecognisedinthestatementofincomeovertheperiodoftheborrowingsonaneffectiveinterestbasis.

(n) Trade and other accounts payable Tradeandotheraccountspayablearestatedatcost.

(o) Employee benefitsDefined contribution plans Obligationsforcontributionstodefinedcontributionpensionplansarerecognisedasanexpenseinthestatementofincomeasincurred.

Share based payments TheemployeeshareoptionprogrammeallowscertainoftheGroup’sdirectorsandemployeestoacquiresharesoftheCompanyundercertainconditions.Theproceedsreceivedonexerciseoftheoptions,netofanydirectlyattributabletransactioncosts,arecreditedtosharecapital(nominalvalue)andsharepremiumwhentheoptionsareexercised.

(p) Provisions AprovisionisrecognisedwhentheGrouphasapresentlegalorconstructiveobligationasaresultofapastevent,anditisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligationandareliableestimatecanbemadeoftheamountoftheobligation.Iftheeffectismaterial,provisionsaredeterminedbydiscountingtheexpectedfuturecashflowsatapre-taxratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyand,whereappropriate,therisksspecifictotheliability.

(q) Treasury shares Whensharecapitalrecognisedasequityisrepurchased,theamountofconsiderationpaid,includingdirectlyattributablecosts,isclassifiedastreasurysharesandrecognisedasadeductionfromequity.Anequalamountisappropriatedfromretainedearningsandtakentoareservefortreasuryshareswithinequity.Whentreasurysharesaresold,theamountreceivedisrecognisedasanincreaseinequitybycreditingthecostofthetreasurysharessold,calculatedusingtheweightedaveragemethod,tothetreasurysharesaccountandtransferringtheequivalentamountbackfromreservefortreasurysharestoretainedearnings.

(r) Revenue Revenueexcludesvalueaddedtaxesandisarrivedatafterdeductionoftradediscounts.


Sale of goods and services rendered Revenueisrecognisedinthestatementofincomewhenthesignificantrisksandrewardsofownershiphavebeentransferredtothebuyer.Norevenueisrecognisedifthereiscontinuingmanagementinvolvementwiththegoodsortherearesignificantuncertaintiesregardingrecoveryoftheconsiderationdue,associatedcostsortheprobablereturnofgoods. Revenuefromrenderingofinternetservicesandservicesrelatedtothesatellitebusinessisrecognisedwhenservicesareprovidedtocustomers.Allcostofrenderingofservicesincurredduringtherelevantperiodistreatedasperiodcost. Revenuefromsaleofadvertisingspaceintelephonedirectoriesisrecognisedonamonthlybasisovertheusefullifeofthetelephonedirectory. Advancesfromcustomerswillbereleasedtoincomewhenservicesareprovided.

Dividend income Dividend income is recognised in the statementof incomeon thedate theGroup’s right to receivepaymentsisestablished.

Interest income Interestincomeisrecognisedinthestatementofincomeasitaccrues.

(s) ExpensesLease payments Paymentsmadeunderoperatingleasesarerecognisedinthestatementofincomeonastraightlinebasisoverthetermofthelease.Contingentrentalsarechargedtothestatementofincomefortheaccountingperiodinwhichtheyareincurred.

Finance costs Interestexpensesandsimilarcostsarechargedtothestatementofincomefortheperiodinwhichtheyare incurred,except to theextent that theyarecapitalisedasbeingdirectlyattributable to theacquisition,constructionorproductionofanassetwhichnecessarilytakesasubstantialperiodoftimetobepreparedforitsintendeduseorsale.Theinterestcomponentoffinanceleasepaymentsisrecognisedinthestatementofincomeusingtheeffectiveinterestratemethod.

(t) Income tax Incometaxontheprofitorlossfortheyearcomprisescurrentanddeferredtax.Incometaxisrecognisedinthestatementofincomeexcepttotheextentthatitrelatestoitemsrecogniseddirectlyinequity,inwhichcaseitisrecognisedinequity.

Current tax Currenttaxistheexpectedtaxpayableonthetaxableincomefortheyear,usingtaxratesenactedorsubstantivelyenactedatthereportingdate,andanyadjustmenttotaxpayableinrespectofpreviousyears.

Deferred tax Deferredtax isrecognisedinrespectoftemporarydifferencesbetweenthecarryingamountsofassetsandliabilitiesforfinancialreportingpurposesandtheamountsusedfortaxationpurposes.Deferredtaxisnotrecognisedforthefollowingtemporarydifferences:theinitialrecognitionofgoodwill;theinitialrecognitionofassetsorliabilitiesinatransactionthatisnotabusinesscombinationandthataffectsneitheraccountingnortaxableprofit;anddifferencesrelatingtoinvestmentsinsubsidiariestotheextentthatitisprobablethattheywillnotreverseintheforeseeablefuture.Deferredtaxismeasuredatthetaxratesthatareexpectedtobeappliedtothetemporarydifferenceswhentheyreverse,basedonthelawsthathavebeenenactedorsubstantively


Consolidatedfinancial statements (in thousand Baht)

Separatefinancial statements(in thousand Baht)

2010 2009 2010 2009

enactedbythereportingdate. Adeferredtaxassetisrecognisedtotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichthetemporarydifferencescanbeutilised.Deferredtaxassetsare reviewedateachreporting

dateandreducedtotheextentthatitisnolongerprobablethattherelatedtaxbenefitwillberealised.

4. Related party transactions and balances

RelatedpartiesarethosepartieslinkedtotheGroupandtheCompanyasshareholdersorbycommonshareholdersordirectors.Transactionswithrelatedpartiesareconductedatpricesbasedonmarketpricesor,wherenomarketpriceexists,atcontractuallyagreedprices. TheCompanyisanassociateofThaicomPublicCompanyLimited(“Thaicom”),acompanyincorporatedinThailandandasubsidiaryofShinCorporationPublicCompanyLimited(collectively“ShinGroup”).DTVServiceCo.,Ltd.,whichisawhollyownedsubsidiaryofThaicom,owns42.19%oftheCompany’ssharecapital,andSingaporeTelecommunications Limitedowns 14.18%of theCompany’s share capital.ShinCorporation PublicCompanyLimitedandSingaporeTelecommunicationsLimitedarewithin thegroupcompaniesof TemasekHoldingsPteLtdincorporatedinSingapore.TransactionswithentitieswithinthesegroupcompaniesarerecognisedasrelatedpartytransactionsoftheCompany. Duringtheyear,theCompanycarriedouttransactionswithitsrelatedparties,thetermsofwhichwerenegotiatedonanarm’slengthbasisintheordinarycourseofbusinessandaccordingtonormaltradeconditions.Managementserviceincomeisdeterminedonamutuallyagreedbasisasafixedmonthlyfee.

Significanttransactionsfortheyearsended31December2010and2009withrelatedpartieswereasfollows:

ผู้ถือหุ้นรายใหญ่

Major shareholders

Salesofgoodsandrenderingofservices 12,738 16,386 12,588 16,206

Purchasesofgoodsandservices 35,340 51,365 35,340 51,365

Otherexpenses 66 155 66 140


Consolidated

financial statements (in thousand Baht)


2010 2009 2010 2009

Subsidiaries

Salesofgoodsandrenderingofservices - - 3,174 2,434

Dividendincome - - 218,129 157,441

Interestincome - - - 48

Otherincome - - 330 572

Purchasesofgoodsandservices - - 8 -

Interestexpenses - - 631 -

Otherexpenses - - 199 1,039

Other related parties

Salesofgoodsandrenderingofservices 380,175 265,561 8,795 37,232

Otherincome 3,479 58 1,014 -

Purchasesofgoodsandservices 113,401 139,918 108,830 134,894

Otherexpenses 20,474 21,654 2,604 3,051

Directors

Directors’remuneration 4,719 3,825 4,719 3,825

Directors’ remuneration Directors’remunerationwhichisincludedinmanagementbenefitexpensesrepresentsmonthlycompensation,annualremuneration,andmeetingfeeswithintheamountapprovedbytheshareholdersoftheCompanyattheir

annualgeneralmeetings.


Consolidated



2010 2009 2010 2009

Consolidated



2010 2009 2010 2009

Balancesasat31December2010and2009withrelatedpartieswereasfollows:

Consolidated



2010 2009 2010 2009

Trade accounts receivable

Majorshareholders 4,196 13,716 4,196 13,692

Subsidiaries - - 431 394

Otherrelatedparties 76,435 55,927 1,265 3,289

Total 80,631 69,643 5,892 17,375

Accrued income

Majorshareholders - - 25 -

Otherrelatedparties - 338 - 338

Total - 338 25 338

Total trade accounts receivable and accrued income 80,631 69,981 5,917 17,713

Amounts due from related parties

Otherrelatedparties 178 33 - -

Movementsduringtheyearsended31December2010and2009ofshort-termloantorelatedpartywereasfollows:

Short-term loan to related party

Subsidiary

At1January - - - 3,000

Decrease - - - (3,000)

At 31 December - - - -

Asat31December2008,short-termloantorelatedpartyofBaht3millionbearsinterestattherateof3.46%per

annumandisrepayableatcall.During2009,theCompanyreceivedthesettlementfromasubsidiaryinfull.

Trade accounts payable

Majorshareholders 5,038 4,687 5,038 4,687

Subsidiaries - - 2 -

Otherrelatedparties 22,815 25,009 20,915 22,260

Total 27,853 29,696 25,955 26,947

Amounts due to related parties

Majorshareholders 20 - - -

Otherrelatedparties 4,989 2,576 - -

Total 5,009 2,576 - -


Consolidated



2010 2009 2010 2009

Consolidated



2010 2009 2010 2009

Accrued expenses

Subsidiaries - - - 73

Otherrelatedparties 100 100 100 100

Total 100 100 100 173

Movementsduringtheyearsended31December2010and2009ofshort-termloanfromrelatedpartywereasfollows:

Short-term loan from related party

Subsidiary

At1January - - - -

Increase - - 80,000 -

Decrease - - (80,000) -

At 31 December - - - -

During2010,short-termloanfromrelatedpartyofBaht80millionbearsinterestattherateof1.21%perannumandisrepayableatcall.On24December2010,theCompanyrepaidtheloantoasubsidiaryinfull.

Warrants of Shin Corporation Public Company Limited and Thaicom Public Company Limited were granted to a member of the Board of Directors of the Company Thaicom Public Company Limited (“Thaicom”), anassociate,and Shin CorporationPublicCompanyLimited(“Shin”),theparentcompanyofThaicom,issuedtheirwarrantstomembersoftheBoardofDirectorsofThaicomandShin, respectively. Thewarrantsofbothcompaniesare in registered form,arenon-transferableandhavenoofferingprice.Thetermsofthewarrantsdonotexceedfiveyears.Thedetailsof thewarrants

areshownbelow:

Thaicom Public Company Limited

ESOP-GrantV 31May2006 1,100,000 1:1 11.870 31May2007 30May2011

Shin Corporation Public Company Limited

ESOP-GrantV 31July2006 1,458,900 1:1.32042 28.536 31July2007 30July2011

WarrantofbothcompaniesforESOP-GrantI,ESOP-GrantII,ESOP-GrantIIIandESOP-GrantIVexpiredduring2007-2010.

Issued dateIssued(units)

Exercise ratio(unit : share)

Exercise price(Baht/unit)

Exercise period

First Last

Issued dateIssued(units)

Exercise ratio(unit : share)

Exercise price(Baht/unit)

Exercise period

First Last


NoteConsolidated financial statements

(in thousand Baht)Separate financial statements

(in thousand Baht)

2010 2009 2010 2009

Consolidated financial statements


(in thousand Baht)

2010 2009 2010 2009



(in thousand Baht)

2010 2009 2010 2009

Business transfer Attheextraordinaryshareholders’meetingsofShineedotcomCo.,Ltd.,heldon14September2010,theshareholderspassedaresolutiontoapprovethetransferofitsentirebusinesstoADVenturePublicCompanyLimited. On30September2010,assets,rights,obligationsandliabilitiesofShineedotcomCo.,Ltd.weretransferredtoADVenturePublicCompanyLimitedundertheentirebusinesstransferagreementdated15September2010.TheconsiderationoftheentirebusinesstransferwasequaltothebookvalueoftransferrednetassetsofShineedotcomCo.,Ltd.on30September2010.

6. Trade accounts receivable and accrued income

Trade accounts receivable

Relatedparties4 80,631 69,643 5,892 17,375

Otherparties 349,586 369,884 163,131 141,643

total 430,217 439,527 169,023 159,018

Accrued income

Relatedparties4 - 338 25 338

Otherparties 6,096 5,388 4,135 4,355

Total 6,096 5,726 4,160 4,693

Total trade accounts receivable and accrued income 436,313 445,253 173,183 163,711

Lessallowancefordoubtfulaccounts (135,604) (140,492) (7,789) (8,318)

Net 300,709 304,761 165,394 155,393

Bad and doubtful debts for the year 104,787 124,069 7,136 10,583

Thecurrencydenominationofcashandcashequivalentsasat31Decemberwasasfollows:

ThaiBaht(THB) 287,271 285,298 103,598 106,097

UnitedStatesDollars(USD) 173 812 173 812

total 287,444 286,110 103,771 106,909

5. Cash and cash equivalents

Cashonhand 78 139 42 97

Cashatbanks-currentaccounts

andsavingaccount 264,547 190,971 103,729 106,812

Highlyliquidshort-terminvestments 22,819 95,000 - -

total 287,444 286,110 103,771 106,909




(in thousand Baht)

2010 2009 2010 2009



(in thousand Baht)

2010 2009 2010 2009

Aginganalysesfortradeaccountsreceivablewereasfollows:

Related parties

Withincreditterms 72,922 49,470 2,127 2,517

Overdue:

Lessthan3months 5,539 15,529 2,143 10,822

3-6months 308 873 174 749

6-12months 214 317 - 10

Over12months 1,648 3,454 1,448 3,277

total 80,631 69,643 5,892 17,375

Other parties

Withincreditterms 133,502 130,748 94,437 83,292

Overdue:

Lessthan3months 64,938 55,955 54,740 43,984

3-6months 24,529 37,796 3,945 6,502

6-12months 56,963 78,464 3,541 2,964

Over12months 69,654 66,921 6,468 4,901

349,586 369,884 163,131 141,643

Lessallowancefordoubtfulaccounts (135,604) (140,492) (7,789) (8,318)

213,982 229,392 155,342 133,325

Net 294,613 299,035 161,234 150,700

ThenormalcredittermgrantedbytheGrouprangesfrom15daysto120days.

Thecurrencydenominationoftradeaccountsreceivableasat31Decemberwasasfollows:

ThaiBaht(THB) 426,656 435,131 165,462 154,622

UnitedStatesDollars(USD) 3,561 4,396 3,561 4,396

total 430,217 439,527 169,023 159,018




(in thousand Baht)

2010 2009 2010 2009

Separate financial statements(in thousand Baht)

2010 2009



(in thousand Baht)

2010 2009 2010 2009

7. Inventories

Finishedgoods 40,014 22,811 118 118

Workinprogress 55,855 54,068 29,583 910

Rawmaterials 20,846 14,422 14,544 8,677

Supplies 343 360 343 360

117,058 91,661 44,588 10,065

Lessallowancefordeclineinvalue (514) (556) (192) (267)

Net 116,544 91,105 44,396 9,798

Inventoriesrecognisedasan

expensein‘costofsalesofgoods’ 160,059 155,349 70,394 21,188

8. Other current assets

Prepaidexpenses 30,279 34,897 14,759 14,392

Otherreceivables 4,991 4,047 - -

Advancepayment 1,973 1,203 1,950 1,069

Interestreceivable 623 693 - 5

Others 7,997 4,484 3,458 3,990

Total 45,863 45,324 20,167 19,456

9. Investments in subsidiaries

Subsidiaries

At1January 658,365 658,365

At 31 December 658,365 658,365

Teleinfo Media Public Company Limited (“TMC”)

AttheannualgeneralmeetingoftheshareholdersofTMCheldon30March2010,theshareholdersapprovedtheappropriationofdividendsofBaht1.24pershare,amountingtoBaht22million.TMCpaidthedividendtoshareholderson29April2010. AttheBoardofDirectors’meetingofTMCheldon29June2010,thedirectorsapprovedtheappropriationofinterimdividendsofBaht1.39pershare,amountingtoBaht24million.TMCpaidthedividendtoshareholderson30June2010.


AttheBoardofDirectors’meetingofTMCheldon2September2010,thedirectorsapprovedtheappropriationofinterimdividendsofBaht1.15pershare,amountingtoBaht20million.TMCpaidthedividendtoshareholderson15September2010. At the Board of Directors’ meeting of TMC held on 21 December 2010, the directors approved theappropriationofinterimdividendsofBaht1.15pershare,amountingtoBaht20million.TMCpaidthedividendtoshareholderson24December2010.

AD Venture Public Company Limited (“ADV”)

AttheBoardofDirectors’meetingofADV,heldon16April2010,thedirectorsapprovedtheappropriationofinterimdividendsofBaht20pershare,amountingtoBaht21.50million.ADVpaidthedividendtoshareholderson26April2010. AttheBoardofDirectors’meetingofADV,heldon7June2010,thedirectorsapprovedtheappropriationofinterimdividendsofBaht30pershare,amountingtoBaht32.24million.ADVpaidthedividendtoshareholderson25June2010. At the Board of Directors’ meeting of ADV, held on 3 September 2010, the directors approved theappropriationofinterimdividendsofBaht40.10pershare,amountingtoBaht43.10million.ADVpaidthedividendtoshareholderson15September2010. At the Board of Directors’ meeting of ADV, held on 3 December 2010, the directors approved theappropriationofinterimdividendsofBaht33.25pershare,amountingtoBaht35.74million.ADVpaidthedividendtoshareholderson13December2010.

Shineedotcom Co., Ltd. (“Shinee”)

AttheannualgeneralmeetingoftheshareholdersofShineeheldon31March2010,theshareholdersapprovedtheappropriationofdividendsofBaht5.30pershare,amountingtoBaht22.58million.Shineepaidthedividendtoshareholderson16April2010. AttheBoardofDirectors’meetingofShinee,heldon17May2010,thedirectorsapprovedtheappropriationofinterimdividendsofBaht7.50pershare,amountingtoBaht31.96million.Shineepaidthedividendtoshareholderson4June2010. AttheBoardofDirectors’meetingofShinee,heldon23August2010,thedirectorsapprovedtheappropriationof interim dividends of Baht 10.18 per share, amounting to Baht 43.37million.Shinee paid the dividend toshareholderson3September2010. At theBoardofDirectors’meetingofShinee,heldon30September2010, thedirectorsapprovedtheappropriation of interimdividends of Baht 8.20 per share, amounting to Baht 34.94million.Shinee paid thedividendtoshareholderson30September2010. At theextraordinary shareholders’meetingsof ShineedotcomCo., Ltd., heldon 28October 2010, theshareholderspassedaresolutiontoapproveliquidation.ShineeregisteredthiswiththeMinistryofCommerceon28October2010andcompleteditsliquidationon5January2011.

Sodamag Corp Company Limited (“Sodamag”)

Attheextraordinaryshareholders’meetingsofSodamagCorpCompanyLimited,asubsidiaryofShinee,heldon10August2009and29August2009,theshareholderspassedaresolutiontoapproveliquidation.SodamagregisteredthiswiththeMinistryofCommerceon31August2009andcompleteditsliquidationon23April2010.




(in thousand Baht)

2010 2009 2010 2009

Investmentsinsubsidiariesasat31December2010and2009,anddividendincomefromthoseinvestmentsfortheyearsthenendedwereasfollows:

Separate financial statements (in thousand Baht)

Ownership Paid-up Cost Dividend

interest (%) capital method Impairment

At cost - net

income

2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009

Subsidiaries

TeleinfoMediaPublic

CompanyLimited 100.00 100.00 173,534173,534 562,694562,694 - - 562,694562,694 85,552 83,817

ADVenturePublic

CompanyLimited 100.00 100.00 10,748 10,748 35,964 35,964 - - 35,964 35,964 132,577 73,624

WattaClassifieds

CompanyLimited 60.00 60.00 20,000 20,000 89,707 89,707 30,000 30,000 59,707 59,707 - -

Total 204,282 204,282 688,365 688,365 30,000 30,000 658,365 658,365 218,129 157,441

10. Other long-term investments

Cashatbanks-fixeddeposits 1,801 1,791 - -

Asat31December2010,thetotalamountoffixeddepositshasbeenpledgedascollateralinrespectofbankguaranteesinrespectofbusiness. Otherlong-terminvestmentsoftheGroupasat31December2010and2009weredenominatedentirely

inThaiBaht.

11. Property, plant and equipment(a) The Group

Consolidated financial statements (in thousand Baht) Land Building Computer Furniture, Equipment Printing Assets Total improve- Equipment fixtures under equip- under ments and office concession ment installa- Equipment agreement tion

Cost

At1January2009 4,130 30,374 1,014,089 262,867 212,062 189,834 72,875 1,786,231

Additions - 56 64,093 34,273 - 1,645 86,449 186,516

Transfers - (23,805) 2,387 167,013 - - (145,595) -

Disposals - (1,519) (42,127) (96,401) - - - (140,047)

At 31 December 2009 and

1 January 2010 4,130 5,106 1,038,442 367,752 212,062 191,479 13,729 1,832,700

Additions - 13 38,940 36,710 - 2,648 29,482 107,793

Transfers - - 10,084 25,773 - 1,612 (37,469) -

Disposals - - (5,520) (31,445) - (31,323) - (68,288)

At 31 December 2010 4,130 5,119 1,081,946 398,790 212,062 164,416 5,742 1,872,205


Consolidated financial statements (in thousand Baht) Land Building Computer Furniture, Equipment Printing Assets Total improve- Equipment fixtures under equip- under ments and office concession ment install- Equipment agreement ationDepreciation

At1January2009 - 22,035 723,864 218,196 212,062 166,434 - 1,342,591

Depreciationchargefortheyear - 3,517 94,186 45,096 - 6,998 - 159,797

Disposals - (22,794) (39,180) (71,787) - - - (133,761)

At 31 December 2009 and 1 January 2010 - 2,758 778,870 191,505 212,062 183,432 - 1,368,627

Depreciationchargefortheyear - 349 90,228 45,873 - 6,968 - 143,418

Disposals - - (5,326) (30,419) - (31,323) - (67,068)

At 31 December 2010 - 3,107 863,772 206,959 212,062 159,077 - 1,444,977

Net book value

At 1 January 2009Ownedassets 4,130 8,339 290,225 41,523 - 23,400 72,875 440,492

Assetsunderfinanceleases - - - 3,148 - - - 3,148

4,130 8,339 290,225 44,671 - 23,400 72,875 443,640

At 31 December 2009 and 1 January 2010Ownedassets 4,130 2,348 259,572 175,634 - 8,047 13,729 463,460

Assetsunderfinanceleases - - - 613 - - - 613

4,130 2,348 259,572 176,247 - 8,047 13,729 464,073

At 31 December 2010Ownedassets 4,130 2,012 218,174 189,329 - 5,339 5,742 424,726

Assetsunderfinanceleases - - - 2,502 - - - 2,502

4,130 2,012 218,174 191,831 - 5,339 5,742 427,228

(b) The Company

Separate financial statements (in thousand Baht) Land Building Computer Furniture, Equipment Assets Total improve- Equipment fixtures under under ments and office concession installation Equipment agreement

Cost

At1January2009 630 4,813 874,290 137,257 212,062 70,960 1,300,012

Additions - - 62,913 23,128 - 83,376 169,417

Transfers - - 2,387 143,208 - (145,595) -

Disposals - - (29,659) (6,422) - - (36,081)

At 31 December 2010

and 1 January 2010 630 4,813 909,931 297,171 212,062 8,741 1,433,348

Additions - - 38,940 19,868 - 28,898 87,706

Transfers - - 10,084 24,809 - (34,893) -

Disposals - - (5,492) (5,967) - - (11,459)

At 31 December 2010 630 4,813 953,463 335,881 212,062 2,746 1,509,595


At31December2009 1,001,593 680,598

At31December2010 1,141,433 833,497

Net book value

At 1 January 2009

Ownedassets 630 2,456 262,169 45,407 - 70,960 381,622

Assetsunderfinanceleases - - - - - - -

630 2,456 262,169 45,407 - 70,960 381,622

At 31 December 2009

and 1 January 2010

Ownedassets 630 2,165 230,339 181,123 - 8,741 422,998

Assetsunderfinanceleases - - - 613 - - 613

630 2,165 230,339 181,736 - 8,741 423,611

At 31 December 2010

Ownedassets 630 1,874 188,942 188,536 - 2,746 382,728

Assetsunderfinanceleases - - - 2,502 - - 2,502

630 1,874 188,942 191,038 - 2,746 385,230

Thegrossamountofthefullydepreciatedplantandequipmentthatwasstillinusewasasfollows:

Consolidated financial statements (in thousand Baht)


Separate financial statements (in thousand Baht) Land Building Computer Furniture, Equipment Assets Total improve- Equipment fixtures under under ments and office concession installation Equipment agreement

Depreciation

At1January2009 - 2,357 612,121 91,850 212,062 - 918,390

Depreciationcharge

fortheyear - 291 94,183 27,526 - - 122,000

Disposals - - (26,712) (3,941) - - (30,653)

At 31 December 2009

and 1 January 2010 - 2,648 679,592 115,435 212,062 - 1,009,737

Depreciationcharge

fortheyear - 291 90,226 35,092 - - 125,609

Disposals - - (5,297) (5,684) - - (10,981)

At 31 December 2010 - 2,939 764,521 144,843 212,062 - 1,124,365


Consolidated financial statements(in thousand Baht)

Fiber opticslicences

Softwarelicences

Total

12. Intangible assets

Cost

At1January2009 - 115,501 115,501

Additions 34,363 6,093 40,456

Disposals - (1,006) (1,006)

At 31 December 2009 and 1 January 2010 34,363 120,588 154,951

Additions 7,163 8,914 16,077

Disposals - (32,417) (32,417)

At 31 December 2010 41,526 97,085 138,611

Amortisation

At1January2009 - 52,807 52,807

Amortisationchargefortheyear 1,592 15,351 16,943

Disposals - (1,006) (1,006)



Disposals - (15,611) (15,611)

At 31 December 2010 4,843 64,755 69,598

Impairment losses

At1January2009 - 16,802 16,802

At 31 December 2009 and 1 January 2010 - 16,802 16,802

Disposals - (16,802) (16,802)

At 31 December 2010 - - -

Net book value

At 1 January 2009 - 45,892 45,892


At 31 December 2010 36,683 32,330 69,013




Fiber opticslicences

Softwarelicences

Total

Cost

At1January2009 - 30,776 30,776

Additions 34,363 3,437 37,800


Additions 7,163 3,171 10,334

Disposals - (22) (22)

At 31 December 2010 41,526 37,362 78,888

Amortisation

At1January2009 - 14,850 14,850




Disposals - (18) (18)

At 31 December 2010 4,843 24,931 29,774

Net book value

At 1 January 2009 - 15,926 15,926


At 31 December 2010 36,683 12,431 49,114

Asat31December2009,animpairmentlossinrespectofcomputersoftwareamountingtoBaht17millioninasubsidiaryhasbeenrecognisedbecausetheanticipatednetdiscountedcashflowfromthecontinuinguseoftheassetislessthanthecarryingamountofthisasset.Thesubsidiaryhasusedthediscountrateof12%per

annumtocalculatethenetfuturecashflow.Thecomputersoftwarewaswrittenoffduring2010.

13. Goodwill

At 31 December 2008

Cost 899,085

Amortisationandimpairmentlosses (304,164)

Net book value at 1 January 2009 and 31 December 2009 594,921

Net book value at 31 December 2010 594,921



At 1 January2009

(Charged) / credited to:At 31 December

2009Statementsof income(note 26)

Equity



(in thousand Baht)

2010 2009 2010 2009


At 1 January2010



Equity

14. Deferred tax

Deferred tax assets 125,453 91,826 24,920 23,763

Movementsindeferredtaxassetsduringtheyearwereasfollows:

Deferred tax assets

Property,plantandequipment(depreciation) 10,026 318 - 10,344

Accountsreceivable(doubtful accounts) 40,635 (91) - 40,544

Inventories(allowance for decline in value) 153 1 - 154

Unearnedincomeandadvances

receivedfromcustomers 18,076 632 - 18,708

Recognisedrevenueandcostfrom

telephonedirectory 22,936 (3,542) - 19,394

Unusedtaxlosses - 36,309 - 36,309

Total 91,826 33,627 - 125,453

Deferred tax assets

Property,plantandequipment (depreciation) 11,002 (976) - 10,026

Accountsreceivable (doubtful accounts) 30,046 10,589 - 40,635



receivedfromcustomers 19,163 (1,087) - 18,076

Recognisedrevenueandcostfrom

telephonedirectory 20,063 2,873 - 22,936

Total 80,315 11,511 - 91,826



At 1 January2010



Equity

Deferred tax assets

Property,plantandequipment(depreciation) 4,182 138 - 4,320

Accountsreceivable(doubtful accounts) 2,080 257 - 2,337

Inventories(allowance for decline in value) 66 (9) - 57


receivedfromcustomers 17,435 771 - 18,206

Total 23,763 1,157 - 24,920

Deferred tax assets

Property,plantandequipment(depreciation) 4,764 (582) - 4,182

Accountsreceivable(doubtful accounts) 1,726 354 - 2,080



receivedfromcustomers 18,342 (907) - 17,435

Total 24,844 (1,081) - 23,763

Asat31December2010,asubsidiaryoftheCompanyhasunusedtaxlossesofBaht121million.Managementdeterminedthatitisprobablethatfuturetaxableprofitwillbeavailableagainstwhichtheunusedtaxlossescanbeutilised.DeferredtaxassetisrecognisedfortheunusedtaxlosscarriedforwardamountingtoBaht36million.


At 1 January2009



Equity




(in thousand Baht)

2010 2009 2010 2009

15. Interest-bearing liabilities

CurrentShort-termloansfromfinancialinstitutions

unsecured - 30,000 - 30,000

Currentportionoflong-termloansfromfinancialinstitutions

unsecured 79,180 43,340 76,680 38,340

Currentportionoffinanceleaseliabilities 537 814 481 171

79,717 74,154 77,161 68,511

Non-currentLong-termloansfromfinancialinstitutionsunsecured

154,980 234,160 154,980 231,660

Financeleaseliabilities 2,954 1,435 2,008 433

157,934 235,595 156,988 232,093

Total 237,651 309,749 234,149 300,604

Theperiodstomaturityofinterest-bearingliabilities,excludingfinanceleaseliabilities,asat31Decemberwereasfollows:

Withinoneyear 79,180 73,340 76,680 68,340

Afteroneyearbutwithinfiveyears 154,980 234,160 154,980 231,660

Total 234,160 307,500 231,660 300,000



(in thousand Baht)

2010 2009 2010 2009



2010 2009

Principal Interest Payments Principal Interest Payments


2010 2009

Principal Interest Payments Principal Interest Payments

Long-term loans from financial institutions

The Company InDecember2008,theCompanyhadenteredintoaloanagreementfromafinancialinstitutionintheamountofBaht270millionwithan interest rateofMLRminus0.80%perannum.This loan isduewithin60monthsafterthefirstdrawdown(December2008),payableevery3months,totally14installmentsintheamountof7.1%ofbalanceofloansofeachduedate.Thefirstinstallmentcommencedonthe21stmonthafterthefirstdrawdown.ThisloanhasnocollateralbutithastheconditionthattheCompanyhastomaintaintheratioofliabilitiestoshareholders’equityatnotexceeding2:1throughtheperiodoftheagreement.

Subsidiary InApril2008,WattaClassifiedsCompanyLimited,asubsidiary,hadenteredintoaloanagreementfromafinancialinstitutionintheamountofBaht10millionwithaninterestrateofMLRperannum.Thisloanisduewithin36monthsafterthefirstdrawdown(April2008),payableevery3months,totally8installmentsatBaht1.25millioneach.ThefirstinstallmentcommencedinJune2009.ThisloanhasnocollateralbutithastheconditionthattheCompanyhastomaintaintheownershipinterestinthesubsidiaryofnotlessthan60%.

Credit facilities Asat31December2010,theGroupandtheCompanyhadunutilisedcreditfacilitiestotallingBaht690million(2009:Baht660million).

Finance lease liabilities Financeleaseliabilitiesasat31Decemberwerepayableasfollows:

Withinoneyear 537 107 644 814 59 873

Afteroneyearbutwithinfiveyears 2,954 316 3,270 1,435 59 1,494

Total 3,491 423 3,914 2,249 118 2,367

Withinoneyear 481 107 588 171 31 202

Afteroneyearbutwithinfiveyears 2,008 316 2,324 433 59 492

Total 2,489 423 2,912 604 90 694

Asat31December2010,theinterestratesaccordingtocontractsofobligationunderfinanceleaseswerebetween4.50%-5.88%perannum(2009:5.67%-5.88%perannum).


Note



2010 2009 2010 2009



2010 2009 2010 2009

Interest-bearingliabilitiesoftheGroupandtheCompanyasat31December2010and2009weredenominated

entirelyinThaiBaht.

16. Trade accounts payable

Relatedparties4 27,853 29,696 25,955 26,947

Otherparties 252,906 250,870 209,951 189,849

Total 280,759 280,566 235,906 216,796

Thecurrencydenominationoftradeaccountspayableasat31Decemberwasasfollows:

ThaiBaht(THB) 279,064 260,329 234,211 214,792

UnitedStatesDollars(USD) 1,695 20,237 1,695 2,004

Total 280,759 280,566 235,906 216,796

17. Other current liabilities

Accruedbonus 37,710 41,856 30,081 17,330

Otheraccruedexpenses 51,801 49,412 17,518 21,505

Otheraccountspayable 15,905 11,847 6,042 2,703

Othertax 11,578 8,350 8,442 7,293

Advancesreceived 4,473 3,915 - -

Others 3,985 2,915 1,300 1,171

Total 125,452 118,295 63,383 50,002



2010 2009 2010 2009


18. Share capital

Authorised

At1January

-ordinaryshares 0.25 674,542 168,636 660,849 165,212

Issueofnewshares 0.25 2,750 688 13,693 3,424

Reductionofshares 0.25 (5,678) (1,420) - -

Cancellationoftreasuryshares19 0.25 (51,700) (12,925) - -

At 31 December

- ordinary shares 0.25 619,914 154,979 674,542 168,636

Issued and paid-up

At1January

-ordinaryshares 0.25 639,360 159,840 629,387 157,347

Issueofnewshares 0.25 5,084 1,271 9,972 2,493

Reductionofshares 0.25 - - - -

Cancellationoftreasuryshares19 0.25 (51,700) (12,925) - -

At 31 December

- ordinary shares 0.25 592,744 148,186 639,359 159,840

Issue of new shares AttheannualgeneralmeetingoftheshareholdersoftheCompanyheldon7April2010,aresolutionwaspassedtoapprovetheissuanceof2,750,000additionalordinarysharestoreserveforthechangeintheexerciseratioforESOP-GrantII,GrantIII,GrantIVandGrantV,equivalentto0.43%ofthetotalissuedandpaid-upsharecapitaloftheCompany.TheCompanyhasregisteredtheincreasedsharecapitaltotheMinistryofCommerceon28April2010.

Reduction of shares AttheannualgeneralmeetingoftheshareholdersoftheCompanyheldon7April2010,aresolutionwaspassedtoreducetheordinarysharesbecausethewarrantoftheCompanyforESOP-GrantIexpiredon13May2009innumberof5,678,038shares,equivalentto0.89%ofthetotalissuedandpaid-upsharescapitalof theCompany.TheCompanyhas registeredthedecreasedsharecapital totheMinistryofCommerceon28April2010.

Note

Par valueper share(in Baht)

2010(thousand shares / thousand Baht)

2009(thousand shares / thousand Baht)

Number Baht Number Baht


Exercise ratio (unit : share) Exercise price (Baht : unit)

Former New Former New

Issued dateIssued

(units)

Exercise

ratio

(unit : share)

Exercise

Price

(Baht/unit)

Exercise period

First Last

Issue of new ordinary share under ESOP schemes as at 31 December 2010

ESOPGrantIV 10,000 2.182 16,408 0.25 31,700 2February2010

8,500 2.182 13,946 0.25 26,944 3March2010

7,000 2.182 11,485 0.25 22,189 2April2010

56,300 2.095 96,207 0.25 177,501 3August2010

169,300 2.048 295,988 0.25 532,185 2September2010

40,000 2.048 69,932 0.25 125,178 4October2010

179,300 2.048 313,471 0.25 561,113 2December2010

ESOPGrantV 80,000 2.503 114,384 0.25 257,707 2April2010

958,100 2.403 1,426,687 0.25 3,071,655 2June2010

39,600 2.403 58,967 0.25 126,955 5July2010

621,000 2.403 924,717 0.25 1,990,914 3August2010

166,000 2.349 252,895 0.25 530,825 2September2010

30,000 2.349 45,704 0.25 95,933 4October2010

947,400 2.349 1,443,335 0.25 3,016,570 2December2010

Total 3,312,500 5,084,126 10,567,369

Warrants under ESOP schemes AttheBoardofDirectors’meetingoftheCompanyheldon10August2010,theDirectorspassedaresolutiontoapprovetheappropriationofinterimdividendforthefirstsixmonthsof2010.Theproposeddividendisgreaterthan50%ofthenetprofitaftertax.ThisaffectstheexerciseratioandexercisepriceofthewarrantsundertheESOPschemes(GrantIVandGrantV).Hence,theCompanychangedtheexerciseratioandexercisepriceof

thewarrantsasdetailedbelow,effectivefrom20August2010onwards.

ESOP-GrantIV 1:1.70884 1:1.74831 2.095 2.048

ESOP-GrantV 1:1.48908 1:1.52347 2.403 2.349

ThedetailsofthewarrantsoftheCompanyasat31December2010areasfollows:

ESOP-GrantIV 31May2006 8,354,300 1:1.74831 2.048 31May2007 30May2011

ESOP-GrantV 30May2007 8,354,400 1:1.52347 2.349 30May2008 29May2012

Exercise

of warrants(unit)

Exerciseprice

per share(Baht)

Issue ofordinaryshares

(shares)

Parvalue

per share(Baht)

Sharepremium

(Baht)

Registrationdate with theMinistry ofCommerce


For the year ended 31 December 2010(in thousand unit)

ESOP - Grant IVEmployees

ESOP - Grant VEmployees

Total

Par valueper share(in Baht)

Consolidated and separate financial statements (thousand shares / thousand Baht)

2010 2009

Number Treasury shares

Treasury shares reserve

Number Treasury shares

Treasury shares reserve

ThewarrantoftheCompanyforESOP-GrantIexpiredduring2009.Inaddition,thewarrantoftheCompanyforESOP-GrantIIandESOP-GrantIIIexpiredduring2010. Duringthe4thquarterof2010,theCompanyhasreceivedadvancereceiptsforsharesubscriptionamountingtoBaht323,614fromtheexerciseof90,400units(150,559shares)undertheESOPscheme.Asofthereportingdate, theCompanyhasnot yet registered the sharecapitalwith theMinistryofCommerceand, therefore,theCompanypresentedtheadvancereceivedasadvancereceiptsforsharesubscriptionunderequityinthebalancesheet.

MovementsinthenumberofoutstandingwarrantsundertheESOPschemeareasfollows:

Openingbalance 1,494 4,788 6,282

Exerciseduringtheperiod (528) (2,875) (3,403)

Closing balance 966 1,913 2,879

19. Treasury shares and treasury shares reserve

At1January

Treasuryshare 0.25 51,700 (183,313) 183,313 51,700 (183,313) 183,313

Cancellationof

treasuryshares 0.25 (51,700) 183,313 (183,313) - - -

At 31 December 0.25 - - - 51,700 (183,313) 183,313

Treasurysharescomprised51.7millionsharespurchasedfromtheStockExchangeofThailandforatotalofBaht222million.Subsequently,theparvaluewasreducedfromBaht1eachtoBaht0.25each,reducingtreasurysharesandreservebyBaht39million.Thetreasurysharescouldberesoldaftersix-monthsbutwithinthreeyearsafterthecompletionoftherepurchase(whichexpiredon22November2010). AttheBoardofDirectors’meetingoftheCompanyheldon10November2010,thedirectorsapprovedaresolutiontowriteofftreasuryshares.UndertheMinisterialRegulationconcerningtreasuryshares,theCompanyisrequiredtodisposeofallofitsrepurchasedshareswithin3yearsoftherepurchase.TheperiodfortheCompanytodisposeoftherepurchasedsharesexpiredon22November2010.Accordingly,theCompanywroteofftreasurysharesof51.7millionshares,orBaht12.9million,whichisequalto8.04%ofthepaid-upcapitalbeforecancellation.TheCompanyhasreduceditspaid-upcapitalfrom642,686,869sharesatBaht0.25each,amountingtoBaht160,671,717,to590,986,869sharesatBaht0.25each,amountingtoBaht147,746,717.TheCompanyhasregisteredthereducedpaid-upcapitalwiththeMinistryofCommerceon26November2010.


20. Additional paid-in capital and reserves

Share premium Section51ofthePublicCompaniesActB.E.2535requirescompaniestosetasidesharesubscriptionmoniesreceivedinexcessoftheparvalueofthesharesissuedtoareserveaccount(“sharepremium”).Sharepremiumisnotavailablefordividenddistribution.

Legal reserve Section116ofthePublicCompaniesActB.E.2535requiresthatacompanyshallallocatenotlessthan5%ofitsannualnetprofit,lessanyaccumulatedlossesbroughtforward,toareserveaccount(“legalreserve”),untilthisaccountreachesanamountnotlessthan10%oftheregisteredauthorisedcapital.Thelegalreserveisnotavailablefordividenddistribution.

Treasury shares reserve ThetreasurysharesreserverepresentstheamountappropriatedfromretainedearningsequaltothecostoftheCompany’sownsharesheldbytheGroup.Thetreasurysharesreserveisnotavailablefordividenddistribution.

21. Segment information Segment information ispresented in respectof theGroup’sbusiness segments. Theprimary format,businesssegments,isbasedontheGroup’smanagementandinternalreportingstructure.

Business segments TheGroupcomprisesthefollowingbusinesssegments: Segment 1 Satelliteuplink-downlinkservices Segment 2 Salesandservicesrelatingtotheinternetbusiness Segment 3 Mediaandadvertising Segment 4 Voiceinfoserviceandmobilecontents

Geographical segments Management considers that the Group operates in a single geographical area, namely in Thailand,andhas,therefore,onlyonemajorgeographicalsegment.


2010 (in thousand Baht)

Satelliteuplink-

downlinkservice

Internetservice

Mediaand

advertising

Voice info service and

mobile content

Elimi-nations Total

Business segments results

Revenuefromsaleof

goodsandrenderingof

services 18,476 1,528,567 729,673 404,969 (4,716) 2,676,969

Costofsaleofgoodsand

renderingofservices (10,115) (1,047,482) (289,234) (96,926) 3,316 (1,440,441)

Sellingandadministrative

expenses - (338,592) (380,446) (51,552) 869 (769,721)

Segment results 8,361 142,493 59,993 256,491 (531) 466,807

Operatingincome 466,807

Otherincome 24,252

Profitbeforefinancecosts 491,059

Financecosts (14,089)

Incometaxexpense (75,605)

Minorityinterest (1,384)

Profit for the year 399,981

Segment assets 12,770 1,468,156 383,117 197,602 (87,792) 1,973,853

Segment liabilities 5,009 642,822 175,549 56,453 (25,086) 854,747

Depreciation(note11) 4,967 120,642 11,942 7,405 (1,538) 143,418

Amortisationofintangible

assets(note12) - 8,395 6,968 1,102 - 16,465

Total 4,967 129,037 18,910 8,507 (1,538) 159,883


2009 (in thousand Baht)

Satelliteuplink-

downlinkservice

Internetservice

Mediaand

advertising

Voice info service and

mobile content

Elimi-nations Total

Revenuefromsaleof

goodsandrenderingof

services 21,453 1,440,234 863,997 265,618 (5,105) 2,586,197

Costofsaleofgoodsand

renderingofservices (11,907) (1,011,751) (331,038) (105,121) 2,166 (1,457,651)

Sellingandadministrative

expenses - (315,028) (403,700) (48,845) 3,910 (763,663)

Segment results 9,546 113,455 129,259 111,652 971 364,883

Operatingincome 364,883

Otherincome 26,278

Profitbeforefinancecosts 391,161

Financecosts (17,747)

Incometaxexpense (84,442)

Minorityinterest (1,710)

Profit for the year 287,262

Segment assets 26,414 1,439,635 454,931 150,277 (88,523) 1,982,734

Segment liabilities 4,653 661,222 237,496 55,478 (24,280) 934,569

Depreciation(note11) 5,870 116,130 25,593 14,510 (2,306) 159,797

Amortisationofintangible

assets(note12) - 6,547 8,558 1,838 - 16,943

Total 5,870 122,677 34,151 16,348 (2,306) 176,740




(in thousand Baht)

2010 2009 2010 2009



(in thousand Baht)

2010 2009 2010 2009

23. Employee benefit expenses

Wages,salariesandbonus 454,318 423,087 231,827 199,616

Contributiontodefinedcontributionplans 16,224 14,754 9,139 8,471

Others 142,094 104,213 40,725 33,190

Total 612,636 542,054 281,691 241,277

22. Other income

Baddebtrefunded 9,744 9,533 - -

Incomefromscrapsales 2,876 2,321 - -

Interestincome 2,504 3,410 985 1,018

Reversalofaccruedexpenses 1,797 4,723 - 4,723

Managementfeeincome 330 330 330 330

Others 5,644 5,911 3,117 3,822

Total 22,895 26,228 4,432 9,893

The defined contribution plans comprise provident funds established by the Group for its employees.Membershiptothefundsisonavoluntarybasis.Contributionsaremademonthlybytheemployeesatratesrangingfrom3%to7%oftheirbasicsalariesandbytheGroupatratesrangingfrom3%to7%oftheemployees’basicsalaries.TheprovidentfundsareregisteredwiththeMinistryofFinanceasjuristicentitiesandaremanagedbyalicensedFundManager.

24. Expenses by nature Thestatementsofincomeincludeananalysisofexpensesbyfunction.ExpensesbynaturedisclosedinaccordancewiththerequirementsofvariousTFRSwereasfollows:

Employeebenefitsexpenses 23 612,636 542,054 281,691 241,277

Depreciationofpropertyand

equipment 11 143,418 159,797 125,609 122,000

Amortisationofintangibleassets 12 16,465 16,943 8,395 6,547

Operatingleaseexpense 210,976 240,864 178,956 213,124

Note



2010 2009 2010 2009



2010 2009

Rate(%)

(in thousand Baht)

Rate(%)

(in thousand Baht)

Note



2010 2009 2010 2009

Note



2010 2009 2010 2009

25. Finance costs

Interestexpense:

Subsidiaries 4 - - 631 -

Financialinstitutions 14,058 17,649 13,747 17,083

Financeleases 31 98 31 13

Total 14,089 17,747 14,409 17,096

26. Income tax expense

Current tax expense

Currentyear 109,232 95,953 32,272 27,786

Deferred tax expense 14

Movementsintemporarydifferences 2,682 (11,511) (1,157) 1,081

Benefitoftaxlossesrecognised (36,309) - - -

Total 75,605 84,442 31,115 28,867

Reconciliation of effective tax rate

Profitbeforeincometaxexpense 476,970 373,413

IncometaxusingtheThaicorporationtaxrate 30 143,091 30 112,024

Incometaxreduction (7,055) (5,774)

Effectofdifferenttaxrates (4,153) -

Gainonliquidationofsubsidiary 11,716 -

Expensesnotdeductiblefortaxpurposes 608 862

Utilisationofpreviouslyunrecognisedtaxlosses (32,293) (22,670)

Losscarryforward (36,309) -

Total 16 75,605 23 84,442


Consolidated financial statements(in thousand Baht / thousand shares)

Separate financial statements(in thousand Baht / thousand shares)

2010 2009 2010 2009

Separate financial statements

2010 2009

Rate (%)

(in thousand Baht)

Rate (%)

(in thousand Baht)

Income tax reduction Asalistedcompany,theCompanyiseligibletoapplyadiscountedtaxrateof25%forfivefiscalyearsfrom2004to2008andreceivedincometaxreductionunderthisRoyalDecreearealsoeligibletocontinuetheperiodoftaxreductionunderRoyalDecreeNo.475butnotbeyondthe2010accountingperiodendingonorafter31December2010.Afterthisperiod,theapplicabletaxratefortheCompanywillbe30%.Theapplicabletaxrateforthesubsidiaries

is30%.

Reconciliation of effective tax rate

27. Earnings per share

Basic earnings per share Thecalculationsofbasicearningspersharefortheyearsended31December2010and2009werebasedontheprofitfortheyearsattributabletoequityholdersoftheCompanyandtheweightedaveragenumberofordinarysharesoutstandingduringtheyearsasfollows:

Profit attributable to equity holders of

the Company (basic) 399,981 287,262 327,034 241,768

Numberofordinarysharesoutstanding

at1January 639,360 629,387 639,360 629,387

Effectofownsharesheld(Treasuryshares) (51,700) (51,700) (51,700) (51,700)

Effectofsharesissuedduringtheyear 1,701 3,776 1,701 3,776

Weighted average number of ordinary

shares outstanding (basic) 589,361 581,463 589,361 581,463

Earnings per share (basic) (in Baht) 0.68 0.49 0.55 0.42

Profitbeforeincometaxexpense 358,149 270,635

IncometaxusingtheThaicorporationtaxrate 30 107,445 30 81,191

Incometaxreduction (7,055) (5,774)

Effectofdifferenttaxrates (4,153) -

Incomenotsubjecttotax (65,439) (47,232)

Expensesnotdeductiblefortaxpurposes 317 682

Total 9 31,115 11 28,867


Consolidated financial statements(in thousand Baht / thousand shares)

Separate financial statements(in thousand Baht / thousand shares)

2010 2009 2010 2009

28. Dividends AttheannualgeneralmeetingoftheshareholdersoftheCompanyheldon7April2010,theshareholdersapprovedtheappropriationofdividendofBaht0.27pershare,amountingtoBaht158.67million.Thedividendwaspaidtoshareholderson4May2010. AttheBoardofDirectors’meetingoftheCompanyheldon10August2010,thedirectorspassedaresolutiontoapprovetheinterimdividendsofBaht0.25pershare,totallingBaht147.58million.Thedividendwaspaidtoshareholderson7September2010.

29. Financial instruments

Financial risk management policies TheprincipalfinancialriskfacedbytheGroupisexchangeraterisk.TheGrouphassales,purchasesandaportionofborrowingsaretransactedinforeigncurrencies.Inordertomanagetherisksarisingfromfluctuationsinexchangerates,theGroupmakesuseofderivativefinancialinstruments. Theobjectiveofusingderivativefinancialinstrumentsistoreduceuncertaintyoverfuturecashflowsarisingfrommovementsinexchangerate,andtomanagetheliquidityofcashresources.Thefollowingstrategiesareemployedtoachievetheseobjectives.Foreignexchangeforwardcontractsaretakenouttomanagethecurrencyrisksinfuturesalesandpurchases.Decisionsonthelevelofriskundertakenaregovernedbycorporatepolicy,whichhasestablishedlimitsbytransactiontypeandbycounterparty. Tradingforspeculativepurposes isprohibited.Allderivativetransactionsaresubjecttoapprovalofthemanagementbeforeexecution. ManagementofcurrencyexposureistheresponsibilityoftheTreasuryDepartment.Managementreportscontaindetailofcostandmarketvalueforallderivativefinancialinstrumentsincludingoutstandingforwardcontractsandcrosscurrencyswap.Ananalysisofexposuresagainstthelimitsestablishedbythemanagementisalsoprovided.Theselimitsprincipallycoverthemaximumpermittedexposureinrespectofshort-terminvestmentregardingtoguidelinetoshort-terminvestmentpolicy.

Capital management TheprimaryobjectiveoftheCompany’scapitalmanagementistoprovidegoodreturnstoshareholdersandbenefitstootherstakeholdersandtomaintainanoptimalcapitalstructureinordertosupportanassetmanagementplanandnewinvestmentopportunitieswhichwillcreatevalueandstrengthenthefinancialpositionforthewholegroup.

Diluted earnings per share Thecalculationsofdilutedearningspersharefortheyearsended31December2010and2009werebasedontheprofitfortheyearsattributabletoequityholdersoftheCompanyandtheweightedaveragenumberofordinarysharesoutstandingduringtheyearsafteradjustingfortheeffectsofalldilutivepotentialordinarysharesasfollows:

ProfitattributabletoequityholdersoftheCompany(basic) 399,981 287,262 327,034 241,768Profit attributable to equity holders of the Company (diluted) 399,981 287,262 327,034 241,768Weightedaveragenumberofordinarysharesoutstanding(basic) 589,361 581,463 589,361 581,463Effectofsharewarrantsonissue(ESOP) 1,993 1,396 1,993 1,396Weighted average number of ordinaryshares outstanding (diluted) 591,354 582,859 591,354 582,859Earnings per share (diluted) (in Baht) 0.68 0.49 0.55 0.41


Effectiveinterest rate(% per annum)


Within 1 year After 1 year but within 5 years

Total

Effectiveinterest rate(% per annum)


Within 1 year After 1 year but within 5 years

Total

Interest rate risk InterestrateriskistheriskthatfuturemovementsinmarketinterestrateswillaffecttheresultsoftheGroup’soperationsanditscashflowsbecauseloaninterestratesaremainlyfixed. TheGrouphasnotenteredintoanyinterestratehedgingcontractsbecausefollowingtheGroup’sinterestratesforlong-termliabilitiesarebasedonthemoneymarketfloatinginterestrates. Theeffectiveinterestratesofinterest-bearingfinancialliabilitiesasat31Decemberandtheperiodsinwhich

thoseliabilitiesmatureorre-pricewereasfollows:

2010 Current Loanspayable-Financial institutions 5.68-6.53 79,180 - 79,180Non-current Loanspayable-Financial institutions 5.68 - 154,980 154,980Total 79,180 154,980 234,160 2009 Current Loanspayable-Financial institutions 3.13-6.64 73,340 - 73,340Non-current Loanspayable-Financial institutions 6.55-6.64 - 234,160 234,160Total 73,340 234,160 307,500

2010 Current Loanspayable-Financial institutions 5.68 76,680 - 76,680Non-current Loanspayable-Financial institutions 5.68 - 154,980 154,980Total 76,680 154,980 231,660 2009 Current Loanspayable-Financial institutions 3.13-6.64 68,340 - 68,340Non-current Loanspayable-Financial institutions 6.64 - 231,660 231,660Total 68,340 231,660 300,000




2010 2009 2010 2009


2010 2009

(in thousand US Dollars)

(in thousand Baht)

(in thousand US Dollars)

(in thousand Baht)

Foreign currency risk TheGroupisexposedtoforeigncurrencyriskrelatingtopurchasesandsaleswhicharedenominatedinforeigncurrencies.Foreign currency forward contracts payable, net Asat31December2010and2009,asubsidiaryhasenteredintoforeigncurrencyforwardcontractstohedgetheforeignexchangerateriskinrespectofaccountspayable.Theforeigncurrencyforwardcontractspayableunder

thesecontractsareshownbelow:

Credit risk CreditriskisthepotentialfinanciallossresultingfromthefailureofacustomerorcounterpartytosettleitsfinancialandcontractualobligationstotheGroupasandwhentheyfalldue. TheGrouphasnosignificantconcentrationsofcreditrisks.TheGrouphaspoliciesinplacetoensurethatsalesofproductsandservicesaremadetocustomerswithanappropriatecredithistory.Derivativecounterpartiesandcashtransactionsarelimitedtohighqualityfinancialinstitutions.

Liquidity risk TheGroupmonitorsitsliquidityriskandmaintainsalevelofcashandcashequivalentsdeemedadequatebymanagementtofinancetheGroup’soperationsandtomitigatetheeffectsoffluctuationsincashflows.

Determination of fair values AnumberoftheGroup’saccountingpoliciesanddisclosuresrequirethedeterminationoffairvalue,forbothfinancialandnon-financialassetsandliabilities.Thefairvalueistheamountforwhichanassetcouldbeexchanged,oraliabilitysettled,betweenknowledgeable,willingpartiesinanarm’slengthtransaction.Fairvalueshavebeendeterminedformeasurementand/ordisclosurepurposesbasedonthefollowingmethods.Whenapplicable,furtherinformationabouttheassumptionsmadeindeterminingfairvaluesisdisclosedinthenotesspecifictothatassetorliability.

Due

Withinoneyear - - 1,130 37,602

Total - - 1,130 37,602

Foreign currency forward contracts payable, net

Contractsreceivable - 37,539 - -

Contractspayable - 37,602 - -

Total - 63 - -




(in thousand Baht)

2010 2009 2010 2009

Thefairvalueoftradeandothershort-termreceivablesistakentoapproximatethecarryingvalue.

Thecarryingamountofcashandcashequivalents,accountsreceivable,accountspayableandshort-termborrowingsapproximatethefairvalueduetotheshortmaturitiesoftheseinstruments.Thevalueofnon-currentborrowingsisestimatedusingdiscountedcashflowsbasedontheGroup’sincrementalborrowingratesforsimilartypes

ofborrowings,asfollows:

Thefairvalueofinvestmentsinequityanddebtsecurities,whichareheldfortrading,heldtomaturityandavailableforsales,isdeterminedbyreferencetotheirquotedbidpriceatthereportingdate.Thefairvalueofheld-to-maturityinvestmentsisdeterminedfordisclosurepurposesonly. Thefairvalueofforwardexchangecontractsisbasedontheirlistedmarketprice,ifavailable.Ifalistedmarketpriceisnotavailable,thenfairvalueisestimatedbydiscountingthedifferencebetweenthecontractualforwardpriceandthecurrentforwardpriceatthereportingdatefortheresidualmaturityofthecontractusingarisk-freeinterestrate(basedongovernmentbonds). Thefairvalueofnon-derivativefinancialliabilities,whichisdeterminedfordisclosurepurposes,iscalculatedbasedonthepresentvalueoffutureprincipalandinterestcashflows,discountedatthemarketrateofinterestatthereportingdate.

Net fair values of derivative financial instruments Thenetfairvaluesofderivativefinancialinstrumentsatthebalancesheetdatewereasfollows:



Book value Fair value Book value Fair value

Asat31December2010

Long-term loan 234,160 214,409 231,660 211,941

Foreign currency forward contracts - 37,759 - -

ThenetfairvaluesofforeigncurrencyforwardcontractsandoptioncontractshavebeencalculatedbasedonratesquotedbytheGroup’sbankerstoterminatethecontractsatthereportingdate.




(in thousand Baht)

2010 2009 2010 2009

31. Events after the reporting period

a) Proposed dividend payment AttheBoardofDirectors’meetingoftheCompanyheldon16February2011,thedirectorspassedaresolutiontoapprovetheappropriationofdividendsofBaht0.25pershare,amountingtoBaht148million.Theproposeddividendsmustbeapprovedbytheshareholdersattheirmeeting.

b) Increase of share capital and reduction of share capital Increase of share capital AttheBoardofDirectors’meetingoftheCompanyheldon16February2011,thedirectorspassedaresolutiontoapprovetheissuanceof750,000additionalordinarysharestosupportthechangeintheexerciseratio,equivalentto0.13%ofthetotalissuedandpaid-upsharecapitaloftheCompany.Asaresultoftheproposeddividendpaymentinnote31(a),theexerciseratioofthewarrantsissuedunderESOP-GrantIVandESOP-GrantVhasbeenaffected.Thedirectorswillproposethistotheshareholdersforapproval.

Reduction of share capital AttheBoardofDirectors’meetingoftheCompanyheldon16February2011,thedirectorspassedaresolutiontoreducetheordinarysharesbecausethewarrantoftheCompanyforESOP-GrantIIandESOP-GrantIIIexpiredon30April2010and30May2010,respectively,innumberof21,518,736shares,equivalentto3.63%ofthetotalissuedandpaid-upsharescapitaloftheCompany.Thedirectorswillproposethistotheshareholdersforapproval.

30. Commitments with non-related parties

Non-cancellable operating lease commitments

Withinoneyear 52,568 51,298 32,887 32,887

Afteroneyearbutwithinfiveyears 69,989 51,040 16,666 49,590

Total 122,557 102,338 49,553 82,477

Other commitments

Bankguarantees 34,074 22,970 25,070 13,366

Total 34,074 22,970 25,070 13,366


32. Thai Financial Reporting Standards (TFRS) not yet adopted TheGrouphasnotadoptedthefollowingnewandrevisedTFRSthathavebeenissuedasofthereportingdatebutarenotyeteffective.ThenewandrevisedTFRSareanticipatedtobecomeeffectiveforannualfinancialperiodsbeginningonorafter1Januaryintheyearindicatedinthefollowingtable.

TFRS Topic Year effective

TAS1(revised2009) PresentationofFinancialStatements 2011

TAS2(revised2009) Inventories 2011

TAS7(revised2009) StatementofCashFlows 2011

TAS8(revised2009) AccountingPolicies,Changes in

AccountingEstimatesandErrors

2011

TAS10(revised2009) EventsaftertheReportingPeriod 2011

TAS11(revised2009) ConstructionContracts 2011

TAS16(revised2009) Property,PlantandEquipment 2011

TAS17(revised2009) Leases 2011

TAS18(revised2009) Revenue 2011

TAS19 EmployeeBenefits 2011

TAS21(revised2009) TheEffectsofChangesinForeign

ExchangeRates

2013

TAS23(revised2009) BorrowingCosts 2011

TAS24(revised2009) RelatedPartyDisclosures 2011

TAS27(revised2009) Consolidatedand Separate Financial

Statements

2011

TAS28(revised2009) Investmentinassociates 2011

TAS29 FinancialReportingin

HyperinflationaryEconomies

2011

TAS31(revised2009) InterestinJointVentures 2011

TAS33(revised2009) EarningsperShare 2011

TAS34(revised2009) InterimFinancialReporting 2011

TAS36(revised2009) ImpairmentofAssets 2011

TAS37(revised2009) Provisions,ContingentLiabilitiesand

ContingentAssets

2011

TAS38(revised2009) IntangibleAssets 2011

TAS40(revised2009) InvestmentProperty 2011

TFRS2 Share-basedPayment 2011

TFRS3(revised2009) BusinessCombinations 2011

TFRS5(revised2009) Non-currentAssetsHeldforSaleand

DiscontinuedOperations

2011


ManagementhasmadeapreliminaryassessmentofthepotentialinitialimpactofadoptionthesenewTASandTFRSinaccordancewiththeFAP’sannouncement.TheadoptionofthesenewstandardsshallhavenomaterialimpactontheconsolidatedandseparatefinancialstatementsintheperiodofinitialapplicationexceptTAS19Employeebenefits.

Managementhasestimated that the transitional liabilityasat1 January2011 foremployeebenefitsisapproximatelyBaht69millionfortheGroupandBaht27millionfortheCompany,whichresultsinincreaseindeferredtaxassetsofapproximatelyBaht21millionfortheGroupandBaht8millionfortheCompanyanddecreaseinretainedearningsofapproximatelyBaht48millionfortheGroupandBaht19millionfortheCompany.Managementintendstoadopttransitionalprovisiontoretrospectivelyrecogniseandaccountforthisliability.


• The Company’s dividend policy TheCompany’sdividendpolicyistopaydividendnolessthan40percentofnetprofitafterdeductionofalltaxes,legalreservesandotherreservesspecifiedbylawandtheCompanyregulationsofthestandaloneprofitandlossstatement,ifthefundisnotrequiredelsewhereandsubjecttotheeconomicandfutureprojectoftheCompanyandthesubsidiariesandthepaymentwouldhavenosignificanteffectontherunningoftheCompany.

• The subsidiaries of the Company’s dividend policy Teleinfo Media Public Company Limited, AD Venture Company Limited and WattaClassifiedsCompanyLimiteditssubsidiariesoftheCompanyhavethedividendpolicyistopaydividendnolessthan40percentofnetprofitafterdeductionofalltaxes,legalreservesandotherreservesspecifiedbylawandthesubsidiariesregulationsofthestandaloneprofitandlossstatement,ifthefundisnotrequiredelsewhereandsubjecttotheeconomicandfutureprojectofthesubsidiariesandthepaymentwouldhavenosignificanteffectontherunningofthesubsidiaries.

1. Audit Fee In2010,theCompanyanditssubsidiariespaidauditorfeeasfollows: • TheCompanypaidauditfeetotheauditor’sfirmintheamountofBaht1.7million(excludedoutofpocketexpenses). • TheSubsidiariespaidauditfeestotheauditor’sfirmintheamountofBaht1.5million(excludedoutofpocketexpenses).

2. Non-audit fee In2010,theCompanyanditssubsidiarieshadneitheradditionalfeenoradditionalfeefromuncompletedservicesfrompreviousyear.

Dividend Policy

Annual Audit Fee for 2010

Investor Information:Investors should contact the Investor Relations Department to request information about CS LOXINFO or its subsidiaries and associate companies: Investor Relations DepartmentCS LoxInfo Public Company Limited90CyberWorldTowerA,17-20thFloor,RatchadapisekRoad,HuaiKhwang,Bangkok10310,ThailandTel:+66(02)2638000Ext.5184Fax:+66(02)2638102E-mail:[email protected]:www.csloxinfo.com

CS LOXINFO is listed on the Stock Exchange of Thailand (SET)

General Information on Reference Persons Security Registrar Thailand Securities Depository Company Limited 62TheStockExchangeofThailandBuilding, RatchadapisekRoad,Klongtoey,Klongtoey,Bangkok10110 Tel: +66(02)2292800 Fax:+66(02)3591259 Thailand Securities Depository Company Limited CapitalMarketAcademyBuilding,TheStockExchangeofThailand 2/7Moo4,(NorthParkProject)Vibhavadi-RangsitRoad,Km.27, TungSongHong,Laksi,Bangkok10210 Tel: +66(02)5969000 Fax:+66(02)8324994-6 HomePage:www.tsd.co.th

Auditor Mr. Winid Silamongkol CertifiedPublicAccountantRegistrationNumber3378

KPMGPhoomchaiAuditLimited EmpireTower,50th-51stFloor 195SouthSathornRoad,Bangkok10120 Tel:+66(02)6772000 Fax:+66(02)6772222 HomePage:www.kpmg.co.th

Foreign limit: 49%Fiscal year ends: December 31External Auditor: KPMG Phoomchai Audit Ltd.


SET ticker CSL

Reuters CSL.BK

Bloomberg CSL TB

Annual Report 2010

CS LOXINFO PUBLIC COMPANY LIMITED90 Cyber world Tower A 17-20 floor, Ratchadaphisek Rd.,Huai Khwang Sub-District, Huai Khwang District, Bangkok 10310Telephone : 0 2263 8000 Fax : 0 2263 8132Website : www.csloxinfo.com

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