Note from theManagement Company - Principal · Note from theManagement Company To : Unit holders of...

101 Montri Storage Property Fund 1

Note from theManagement Company

To : Unit holders of the 101Montri Business Property Fund

GDP in the 3rd quarter of 2015 grew 2.9 percent compare to the GDP growth in the2nd

quarter of 2015 of 2.8 percent. The main contributors for the expansion are the exports of

Service, Government Spending and Household Spending. The contraction of the goods export

affected by the global economy and the public investment resulted in the negative factor in last

year.

In 2016, Thailand’s economy is expected to grow by 3.0-4.0 percent due to an

acceleration of public spending and investment , the momentum of the economic stimulus

package as well as the recovery of global economy and export prices and the continued growth

of the tourism sector. It is expected that the value of exports of goods grew by 3.0 percent,

household consumption and investment grew by 2.6 and 9.5 percent respectively Virgil rate in

the range of 1.0-2.0 and a current account surplus of 5.7 percent of GDP The Fund has a net

loss which has not been received obtained from the price appraiser during the period in the

amount of Baht 19,820,000. The value of the investment in real properties in the most recent

period of the fund is equivalent to Baht 576,080,000.

The Management company would like to thank all unit holders for the investing fund. The

management company will manage the Fund efficiently in order to bring the highest benefit to

all unit holders. The unit holders are welcome to ask about the value of the net assets of the

Fund or the progress of the operation of the Property Fund & REIT Department of the

management company at 0-2686-9525.

CIMB-Principal Asset Management Co., Ltd.


The Management Company

Name and Location of the Management Company

CIMB-Principal Asset Management Co. Ltd.

No. 44, 16th floor, CIMB Thai building Langsuan Road,

Lumpini, Patumwan, Bangkok 10330

Tel: 02-686-9500 Fax: 02-657-3167

Details of The Management Company

CIMB-Principal Asset Management Company Limited (Thailand) is 99.99% owned by CIMB-Principal Asset Management Berhad along with other subsidiary companies in Singapore and Indonesia. CIMB-Principal Asset Management Berhad, Malaysia is a joint venture between two global leading financial institutions which, having shared of

CIMB Group by 60% Principal Financial Group by 40%

CIMB-Principal Asset Management Co., Ltd. currently, manufactures and distributes a comprehensive range of funds Mutual Fund, Private Fund, Provident Fund, Property Fund & REITs space to all clients from retail, corporate, institution and government entities.

With full support from our shareholders both CIMB Group and Principal Financial Group, we have the readiness to offer total asset management solutions and services to all clients.


A strong investment network and world-wide presence has brought us the following competitive advantages.

Unique investment management process is adopted from our shareholders CIMB Group & Principal Financial Group. Active bottom-up stock picking strategy with quality fundamental analysis both “Qualitative”& “Quantitative and disciplined portfolio construction management is our key focus. Besides, word-wide investment connection & accessibility along with Integrated Technology platform are the key abilities to deliver new investment ideas and product innovation. Proper Risk Management control and good corporate governance is encouraged and implanted to our core corporate philosophy.

We believe in core philosophy of TRUST, that we have emphasized on the mission to help investors achieve their long-term financial goals with disciplined investment process together with proper risk management.

Guiding Principles

hink positive to find solutions - Execute with passion

espect others with honesty and sensitivity

nleash curiosity for continuous learning

how courage and initiative - Act swiftly

eamwork to achieve the best outcome

http://www.cimb-principal.co.th/Board_of_Directors-@-Mr_Goanpot_Asvinvichit.aspx

http://www.cimb-principal.co.th/Board_of_Directors-@-Mr_Goanpot_Asvinvichit.aspx

http://www.cimb-principal.co.th/article_go.aspx?id=8e3df031-3d56-4453-86e8-48091325748d

http://www.cimb-principal.co.th/article_go.aspx?id=8e3df031-3d56-4453-86e8-48091325748d

http://www.cimb-principal.co.th/article_go.aspx?id=fde48e88-cf70-4947-b461-f7eac5b69279

http://www.cimb-principal.co.th/article_go.aspx?id=fde48e88-cf70-4947-b461-f7eac5b69279

http://www.cimb-principal.co.th/Board_of_Directors-@-Narongchai_Wongthanavimok.aspx

http://www.cimb-principal.co.th/Board_of_Directors-@-Narongchai_Wongthanavimok.aspx


Board of Directors and Executives of

CIMB-Principal Asset Management Company Limited

Board of Directors

1. Raja Noorma binti Raja Othman Chairman

2. Wilaiporn Liwgasemsan Director & Independent Director

3. Boonsak Chiempricha Director & Independent Director

4. Rex Pak Kuen Auyeung Director

5. Pedro Esteban Borda Director

6. Adisorn Sermchaiwong Director

7. Jumpon Saimala Director

Executives

1. Mr. Jumpon Saimala Chief Executive Officer

2. Ms. Brenda S.H. Choo, CPA (M'sia) Chief Operating Officer

3. Mr. Win Phromphaet Chief Investment Officer

Fund Manager

1. Mr. Suttipan Kreemaha

2. Mr. Win Phromphaet

3. Mr. Phopthorn Gumpanon

http://www.cimb-principal.co.th/article_go.aspx?id=a4f0dec2-13af-4531-a803-522f7bbb1aea


Trustee

Citibank N.A. Bankok branch

Address: No. 399 Sukhumvit Road, Interchange 21 Building Klongtoey Nua

Sub-district, Wattana District, Bangkok 10110 ,

Tel.: 02-788-2000

Auditor

PricewaterhouseCoopers ABAS Company Limited

Address: 15th Floor, Bangkok City Building, No. 179/74-80

South Satorn Road, Thungmahamek, Satorn District

Bangkok 10120

Tel.: 02-344-1000

Investment Unit Registration

CIMB-Principal Asset Management Co. Ltd.

Address: No. 44, CIMB Thai building 16th floor,

Langsuan Road, Lumpini, Patumwan,

Bangkok 10330

Tel.: 02-686-9500


Objectives of the Fund

The objectives are to intend to raise funds from general investors through the issue of Investment Units. The Fund will use such funds for investing in real properties including the renovation, change, development and/or distribution of the assets that the Fund invest or holds in the forms of lease, sub-lease and/or sale or any transactions so as to increase revenues and returns to the Unit holders and the Fund. The Fund will also invest in other assets and/or other securities and/or seek for any benefits under the Securities Law and other relevant laws.

Details of the Fund

Amount of Capital : 603 million Baht Number of Investment Units : 60,300,000 units Type of Investment Units : Names of Unit holders Trustee : Citibank N.A. Bangkok branch Investment Units Registrar : CIMB-Principal Asset Management Co., Ltd. Advisor : None Property Manager : None


General Information

101 Montri Business Property Fund (“The Fund”) was registered for establishment as a Property fund on June 30, 2009 for an indefinite term. The objectives of the Fund are to raise funds. The Fund will use such funds mainly for investing in real properties consisting of land and storage as at August 26 , 2015. The major unit holder is Mr. Neti Tuntimontri who holds 8.46 % of the units of the Fund. CIMB-Principal Asset Management Company Limited is the management company of the Fund

and Citibank N.A. Bangkok branch is the Trustee of the Fund.


Dividends Payment

1. Rules, Policy, and Methods of Payment of Dividends to Unit holders

The Fund has the policy to make payment of dividends to the unit holders not more than twice a year.

1) If the Fund has net profit in each year, the Management Company shall pay dividend

to unitholders at the rate of no less than 90 percent of the adjusted net profit. The

adjusted net profit means the net profit that deducts unrealised gain from appraisal

or reviewed appraisal of real estate or leasehold rights to real estate including other

adjustments to align with cash status of the Fund according to the guideline of

Securities and Exchange Commission.

2) If the Fund has accumulated profits, the Management Company may pay dividend to unitholders out of the accumulated profits provided that dividend payment under (1) must not cause increase in its deficit in the period which dividend is paid.

In considering the payment of dividends, if the value of interim dividend per unit to be paid is lower than or equal to Baht 0.10, the Management Company reserves the right not to pay dividend at that time and to bring such dividend forward for payment together with the year end dividend payment.

For the payment of dividends, the Management Company shall pay the said dividends to the unit holders within 90 days from the end of the accounting period in which the dividend occurred. In cases where the Management Company cannot pay out the dividends in the said time period, the Management Company shall inform the unit holders and the Office of the SEC in writing. Regarding the guidelines for the payment of dividends, the Management Company shall proceed in accordance with the stipulated details except in cases where the SEC, the Office of the SEC and/or other agencies with authority under the law have amended, changed, added, announced, ruled, ordered, approved, and/or decided otherwise, in which case the Management Company shall proceed accordingly and it shall be deemed that the Management Company has received approval from the unit holders.


2. Conditions and Methods of the Payment of Dividends

(1) In the case where the Management Company discovers that any person or person of the same group holds more than one-third of the total investment units of the Fund sold, the Management Company shall not pay dividends to that person or person of the same group for the part exceeding one-third of the total investment units of the Fund sold except in accordance with the exception as prescribed by the SEC.

The Management Company shall monitor the unit holding of an ex-owner or assignor of lease, lessor or grantor of right over the immovable property and person of the same group. In the case that it appears to the Management Company that such persons collectively hold more than one-third of the total investment units sold, the management company will act in accordance with the above paragraph.

(2) The Management Company will announce a dividend payment, book-closing date, and dividend ratio through:

1. an announcement in at least one newspaper;

2. putting up a public notice at every office of the Management Company and providing the notice to selling agents;

3. sending letters to the unit holders in the list on the book-closing date, trustees, and the SET.

(3) The Management Company will make dividend payments through bank transfers to bank accounts of the unit holders or crossed account-payee-only cheques according to the names and addresses in the register book of the unit holders.

(4) In the case that a unit holder does not invoke his right to a certain dividend within the

statute of limitation under the Civil and Commercial Code, the Management Company

will not use such dividend in any way other than for the benefit of the Fund.


3. Additional conditions:

In the consideration of the payment of dividends, if the dividend announced to be paid per each investment unit during the accounting year has a value lower than or equal to 0.10 baht, the Management Company reserves the right not to pay such dividend at the said time and to pay at the end of the accounting year. Regarding the guidelines for the payment of dividends, the Management Company shall

proceed in accordance with the stipulated details except in cases where the SEC, the Office of

the SEC and/or other agencies with authority under the law has amended, changed, added,

announced, ruled, ordered, approved, and/or decided otherwise, in which case the

Management Company shall proceed accordingly and it shall be deemed that the Management

Company has received approval from the unit holders.

4. Dividend history 101 Montri Business Property Fund has already paid dividends five times as follows:

The Payment

of Dividend

A period of dividend’s payment Dividend payment date

The dividend payment ratio

(Per investment unit)

No. 1 June 30, 2009 until December 31, 2009 March 18, 2010 0.3500

No. 2 January 1, 2010 until June 30, 2010 September 15, 2010 0.3500

No. 3 July 1, 2010 until December 31, 2010 March 15, 2011 0.3500











Details of the Invested Real Property

The invested real property, located at No. 4976 and 4984 – 86, Po-Kaew Road (Ladprao Soi 101), Kwaeng Klongjan, Khet Bangkapi, Bangkok, operates the business relating to goods storage.

The location of the storage building is at Soi Po-Kaew (Public Road) which is 200 meters away from Po-Kaew Road with a width of two traffic lanes. Po-Kaew Road is a 4-traffic-lane road. With regard to movement in and out of the storage building, a huge truck is able to move in and out conveniently. At present, there are 11 storage buildings and other buildings which are parts of the project, e.g. 2 employee residential buildings, having a total area of 44,525 square-meters. All buildings in the project are located on the project area of approximately 39 rai. The surrounding area is developed communities with many housing projects and is close to the commercial business areas of Bangkok, e.g. Ladprao, Rankhamhaeng and Ratchadapisek, which are the location of shopping malls, restaurants, banks, gas stations, schools, commercial buildings, residential buildings and hospitals etc. The land around the project area is proper for developing the project, primarily and especially for residential and commercial Development. This land is considered a potential location for increasing value of the land. The buildings in which the Fund will make investment consist of storage buildings and employee residential buildings, in a total of 13 buildings as per the details below:

1. Storage Building 9 buildings 39,832 Sq.m.

2. Scene Storage 1 buildings 748 Sq.m.

3. Studio 1 buildings 3,084 Sq.m.

4. Employee Residential Building 1 buildings 837 Sq.m.

Total 12 buildings 44,501 Sq.m.


79 Land plots located at No. 4976 4984-86 Klongchan, Bangkapi, Bangkok Land Plot No. 5136

IV 7626-15 and 5136 I7626-15 with total area (approximately) 39 (thirty-nine) rai, 1 (one) ngan,

47 (forty-seven) sq. wah with the following details:

No. Title Deed No. Land No. Area Rai Ngan Sq. wah

1 75572 2951 - 2 04 2 75573 2952 - 2 04 3 75574 2953 - 2 04 4 75591 2958 - 2 04 5 75592 2986 - 2 04 6 75593 2987 - 2 04 7 2679 2995 2 1 20 8 75566 2945 - 2 04 9 75567 2946 - 2 04 10 75568 2947 - 2 04 11 75569 2948 - 2 04 12 75570 2949 - 2 04 13 75571 2950 - 2 04 14 75594 2988 - 2 04 15 75595 2989 - 2 04 16 75596 2990 - 2 04 17 75597 2991 - 2 04 18 75598 2992 - 2 04 19 75599 2993 - 2 04 20 75608 2996 - 1 41 21 75609 2997 - 2 32 22 75610 2998 - 2 23 23 75611 2999 - 2 14 24 75612 3000 - 2 04 25 75613 3001 - 2 05



26 75614 3002 - 2 05 27 75615 3003 - 2 04 28 75616 3004 - 2 04 29 75617 3005 - 2 04 30 75618 3006 - 2 04 31 75619 3007 - 2 04 32 75649 682 - 2 04 33 75650 681 - 2 37 34 75651 680 - 2 30 35 75652 679 - 2 37 36 75667 3156 - 1 99 37 75668 3155 - 1 99 38 75669 3154 - 1 99 39 75670 3153 - 1 99 40 75671 3152 - 1 99 41 75672 677 - 1 99 42 75673 676 - 1 99 43 75674 675 - 1 99 44 75675 674 - 2 4 45 75680 3475 - 2 21 46 75681 3138 - 2 17 47 75682 3139 - 2 16 48 75683 3140 - 2 13 49 75684 3141 - 2 11 50 75685 3142 - 2 9 51 75686 3143 - 2 6 52 75687 3144 - 1 1 53 75688 3145 - 1 99 54 75689 3146 - 1 99



55 75690 3147 - 1 99 56 75691 3148 - 1 99 57 75692 3149 - 1 99 58 75693 3150 - 1 99 59 75694 3151 - 1 99 60 75696 441 - 2 02 61 75700 3473 - 1 17 62 75701 3474 - 1 82 63 75702 3137 - - 97 64 75703 3136 - - 99 65 75704 3135 - 1 03 66 75705 3134 - 1 02 67 75706 3133 - 1 01 68 75707 3132 - 1 05 69 75708 3131 - 1 04 70 75709 3130 - 1 02 71 75710 3129 - 1 64 72 75711 3128 - 1 62 73 75712 3127 - 1 53 74 75713 3126 - 1 51 75 75714 3125 - - 92 76 75715 3124 - - 87 77 75716 3123 - - 81 78 243977 3965 - 1 39 79 244054 3966 1 2 75

Total 39 1 47


Cost Appraisal (Revised) 576,080,000 Baht

Name of Appraiser Company Real Estate Appraisal Company Limited

Date of Appraised December 11, 2015

Unitholders Meeting No. 1/2558 on September 11,2015

Resolution of the re-contract with Montri business Co.,Ltd. with the following conditions.

Conditions of Approval

RENTAL Year 7 30.00 MB. (Not Profit Sharing)

Year 8 32.00 MB. (Not Profit Sharing)

Year 9 34.00 MB (Not Profit Sharing)

Letter Of Guarantee Equal to half the rent /Renewed every six months

Insurance Fund to pays

Property Tax Fund & Lessee At least 50 percent

Contract Period October 13,2015 – October 12,2018


101 Montri Business Property Fund Table presenting expenses collected from the Fund

for the period January 1, 2015 to December 31, 2015

(Fund's Direct Expenses) Amount (Thousand Baht) NAV (%)

Management fee 3,985.26 0.64

Trustee Fee 132.84 0.02

Registrar Fee 664.21 0.11

Legal advisor Fee 404.92 0.07

Property tax 1,613.97 0.26

Appraisal Fee 107.00 0.02

Auditor Fee 341.90 0.06

Annual Fee for SET registration 106.85 0.02

Insurance Premium 514.88 0.08

Other expenses 292.68 0.05

Total expenses** 8,317.37 1.35

Remark: * Fees and expenses are included of value added tax . specific business tax or another tax in the similar way (as if)

** Brokerage Commission and Fee of securities trading are excluded


Report of receiving benefits from the soft commission of the 101 Montri Business Property Fund

- There is no Soft commission -

Total Brokerage Commission from Securities Trading Company

-None-


Market Overview

Overview warehouse in the country in the past years that the warehouse area was expanded to support the growth of the core business. Only by establishing close factories. Transport hub And cities Customers who rent a warehouse, mainly wholesale and retail trade. The second is the consumer products business. Automotive industry Business technology And specific groups such as chemicals and hazardous materials, etc.

Supply

Warehouses Supply in the first half of 2015 amounted to 3.47 million sq.m., Up 18.5% compared to the same period last year and increased 3.0% from year-end 2014, with growth driven by economic districts. Border Trade Demand-side warehouse on strategic transportation. And to support the AEC in the end of this year, the supply increased from operators existing and new market entry by entry of an industrial estate development, some want to increase the service lifecycle, as well. the two businesses have the same customer base.

Considering Spatial The warehouse in Samut Prakan most concentrated. Due to the geography of Bangkok near Suvarnabhumi Airport. And several industrial estates Factors Boon has accumulated 1.28 million sqm., Representing 36.5% of total rent warehouse space grew 10.3% from the first half of last year. Followed by Chonburi (24.4% stake), which is popular among manufacturers and logistics service providers. Due to a deep-sea port at Laem Chabang. The industrial area near the Eastern Seaboard, a large production base of automotive industry.

For warehouse space in Rayong, a growth of 286.1% compared to the first half of 2014 from a warehouse around the Eastern Seaboard. The warehouse in Bangkok grew from the previous year, but also face fewer space restrictions and land prices are relatively high.


Demand

Considering the rate of demand for warehouses in the first half of 2015, the average rental rate of 78.0% of the total rentable area. The major cause of the increase in supply in the market is key. Followed by a slowdown in the retail business. The consideration for Spatial found. The Eastern Seaboard. Will be affected by the increase in supply as possible. Because the area is not affected by the increase in supply as possible. Because the area is not affected by the flood in 2011 was the result of lower demand, inventory reduction. Both fleets continued to contract. The number of containers (only the product) at Laem Chabang in recent years has decreased, resulting in the rate of rent warehouse under the other as a warehouse in Bangkok continues to be. the most often reflected by the occupancy rate is almost full. Followed by Suvarnabhumi – BangPakong and Pathum Thani - Ayuttaya


The competitiveness of enterprises.

The competitiveness of enterprises are concentrated direction. The space between the cargo

port with industrial or manufacturing base as major cities. With the entry of new operators that

contribute to greater price competition. The overall average rent level dropped to 159.8 baht /

sqm. / Month decreased 0.5% compared to the first half of 2014, however, the warehouse rents

will vary by location and price. Rental rates are based on the model and age restrictions /

conditions. The rent of the warehouse, including warehouse management technology has come.

Or a warehouse that has a base by international standards such swill.


Risk Factors

General Risks

The general economic situation including inflation, interest rates, exchange rates, price of consumer goods, price of real property, financial policies of the government, Bank of Thailand and other governmental agencies affecting the operational result, financial and investment status of the Fund and general economic recession, as well as the decrease of customer demand has a material adverse effect on the revenue of the real property and the operation of the Fund and the price of investment units on the Stock Exchange of Thailand which may be lower or higher than the offering price. The price of investment units traded on the Stock Exchange of Thailand may be affected by external factors which are beyond the control of the Fund, e.g. the movement and the change to international stock exchanges, local and international interest rates, exchange rates, direct or indirect policies which affect the importation or exportation of foreign currency, local and international economic status, general risk factors of the business operation, the volatility of the consumer goods market and regulations, tax and policies of the government which may affect investor confidence. Accordingly, there is no guarantee that such external factors will not materially affect the price of the investment units.

Risk on the Operation of the Fund

Prior to investment in the real property, the management company has studied the details of such real property from the documents obtained from conducting due diligence and the report of the appraiser. Nevertheless, such action does not guarantee that such real property is free from unexpected damage or defects which may require reparation expense. The report of the real property appraiser that the management company uses as a basis in estimating and examining the real property may contain defects and inaccuracies as some defects in the real property may be difficult to find or unable to be detected due to the limitation


of the inspection including the technique used for the inspection or other factors limiting the inspection of the appraiser and engineer. Risk on the Interest Rate

The risk on the interest rate is a risk that may arise out of the change to the value of the financial tools due to the change of the market interest rate. Among the financial asset that may create risks on the interest rate to the Fund are, for example, interest on bonds. Risk on Providing Credit

The risk in providing credit is the risk that may arise out of the failure by the contractual party to comply with the agreement, which may affect the cash flow to be received from the financial assets of the Fund. The risk in providing credit is caused by the risk arising out of the collection of the rent. Nevertheless, such financial assets will become due over a short-term period, therefore, the Fund does not expect any damage from the collection of debt.


Guidelines and executions for proxy voting 101 Montri Business Property Fund

Since January 1, 2015 to December 31, 2015.

Investors can review the guidelines for proxy voting and the voting right execution in a shareholders’ meeting of various companies in the year 2015 from the

website of the management company (www.cimb-principal.com).

List of person involving in terms of business transaction with Fund 101 Montri Business Property Fund

From January 1, 2014 to December 31, 2014

1. CIMP-Principal Asset Management

2. Citibank N.A., Bangkok Branch

3. Montri Business Company Limited

4.


Transactions between Related Parties

Type of Transaction

Person/ Juristic Person with Common Interest/

Relationship

Transaction Value of the Transaction (Baht)

Necessity and Reasonableness of

Transaction 2015 2014 1. Seeking benefit from real property

Montri Business Company Limited is an affiliated company of the former owner of the property (Montri Engineering Limited Partnership and Montri Studio Company Limited)

The lessee of the land and buildings

44,514,522 48,000,000 The Fund made an investment by purchasing the land together with the buildings and equipment from Montri Engineering Limited Partnership and Montri Studio Company Limited; and leased such equipment to an affiliated company of the former owner of the real property, Montri Business Company Limited This transaction is made in accordance with the terms and conditions of the lease agreement between the Fund and Montri Business Company Limited

2. Management of the Fund

CIMB-Principal Asset Management company limited as the management company and the registrar of the Fund

Management of the Fund

3,985,255 4,032,539

The management company is entitled to receive a monthly management fee from the Fund at the rate of 0.60% per annum, exclusive of VAT, specific business tax or any other similar tax (if any) of the net asset value of the Fund calculated at the end of each month by the


management company and certified by the trustee. Nevertheless, such expense was exempted for the year 2009.

Registrar of the Fund

664,209

672,090

The expense for the operation of the investment unit registrar is calculated at the rate of 0.1% per annum, exclusive of VAT, specific business tax or any other similar tax (if any) of the net asset value of the Fund calculated at the end of each month by the management company and certified by the trustee.

Citibank N.A., Bangkok Branch

The trustee of the Fund

132,842 134,418 The trustee of the Fund will receive a monthly remuneration at the rate of 0.02% per annum, exclusive of VAT, specific business tax or any other similar tax (if any) of the net asset value of the Fund calculated at the end of each month by the management company and certified by the trustee.

3. Investment in the Deposited Monies

Citibank N.A., Bangkok Branch, as the trustee of the Fund

Monies deposited with the bank

25,486,389

36,234,109

The bank account opened for the operation of the Fund.


Significant agreements with related parties

(a) Management fee The Management Company is entitled to receive a monthly management fee from the Fund at a rate of 0.60% per annum exclusive of value added tax, specific business tax or any other similar tax of the net asset value of the Fund as calculated by the Management Company and verified by the Trustee.

(b) Fee of the Investment Unit Registrar

The expenses for the work of the Investment Unit Registrar shall be at a rate of 0.10% per annum exclusive of value added tax, specific business tax or any other similar tax of the net asset value of the Fund as calculated by the Management Company and verified by the Trustee. ( Specified in the project shall not exceed 0.1 percent per annum of the net asset value)

(c) Trustee fee

The Trustee is entitled to receive a monthly remuneration at a rate of 0.02% per annum exclusive of value added tax, specific business tax or any other similar tax of the net asset value of the Fund as calculated by the Management Company and verified by the Trustee. ( Specified in the project shall not exceed 0.5 percent per annum of the net asset value)

(d) Consulting fee

Consulting fee shall be at a rate of 0.10% per annum exclusive of value added tax, specific business tax or any other similar tax of the net asset value of the Fund as calculated by the Management Company and verified by the Trustee.

(e) Auditor fee Audit fee Fund paid Audit fee to PricewaterhouseCoopers ABAS Company Limited and Advisory company limited 341,900 Baht for the year end of 2015 Non- audit fee Fund has no expenses or non-audit fee to PricewaterhouseCoopers ABAS Company Limited and Advisory company limited or person related with this audit company and no burden to paid in the future from incomplete service in the past period.


Shareholding Structure and Management

Shareholding Structure of the Fund as at August 26, 2015 (Book Closure) The Company, the Investment Units Registrar of the Fund would like to present the top-ten Unit holders as per the following details:

No. NAME No. of units held % of total

outstanding units

1 MR.NETI TUNTIMONTRI 5,099,400.0000 8.46%

2 Mr. PETER ERIC DENNIS 2,700,000.0000 4.48%

3 MS.SUCHADA LOABOONSUP 2,385,100.0000 3.96%

4 MR.PATHAMIN NATEETHONG 2,000,000.0000 3.32%

5 MRS.PONGLADDA TUNTIMONTRI 1,500,000.0000 2.49%

6 MRS.CHANYA WACHIRAWANITCHKIT 500,000.0000 0.83%

7 MRS.NICHAYA AROONANOTHAI 489,400.0000 0.81%

8 MRS.VASANA NIRANKUL 439,500.0000 0.73%

9 MS.THITAREE CHITWATTANAPAKDEE 439,500.0000 0.73%

10 MS.SUDTHIDA RATANARAK 439,500.0000 0.73%

TOTAL 15,992,400.0000 26.54%


Market Price Value % NAV

(Baht)*1

Investment in property

101 Montri Business Property Fund 576,080,000 96.06

Securities or assets in Thailand

Deposits in Banks 25,493,759.39 4.25

Others

Other assets 16,129,008.32 2.69

Other debts (18,014,853.08) (3.00)

Net Asset Value 599,687,914.63 100.00

Remark : *1 Market price is inclusive accrued interest receivable.

Details of investment, loan and creation of encumbrances

As of December 31, 2015 Details of investment 101 Montri Storage Property Fund


Group of Instruments Market Price %NAV

Value (Baht)*

(a) Thai governmental instruments and foreign governmental

instruments

- Thai governmental instruments - None - - None -

- foreign governmental instruments - None - - None –

(b) Instruments of banks under specific law issued, ordered 25,493,759.39 4.25

to pay, accepted, guaranteed by aval, endorsed or

guaranteed by commercial banks or finance companies

(c) Instruments with the rate of investment grade - None - - None –

(d) Instruments with the lower rate of investment grade 576,080,000.00 96.06

which can be invested or instruments without rating

Portion of upper limit capital investment which the Management Company expects to invest in (d) 0% NAV

Remark :* Market price are inclusive accrued interest receivable.

Investment Summary Report in Debts Instrument, Savings or Hybrid Securities of the Fund

Investment Summary Report 101 Montri Storage Property Fund

101 Montri Storage Property Fund


Type Issuer Guarantor/ Acceptor/ Endorsee

Term Rating Amount of principal of loan/

Value as specified on the front page of the

note

Market Price Value

1 Investment in property

101 Montri Business Property Fund

- - N/A 586,000,000.00 576,080,000.00

2 Deposits in banks

Citibank N.A. - - N/A 25,486,388.88 25,493,759.39

Remark : *1 Market price are inclusive accrued interest receivable.

Details of Instruments and Rating of Instruments in the Port



Financial Status and Performance

Summary report on auditing

The financial statement as at January 1, 2015 to December 31, 2015, Mr.Boonlert Kamolchanokkul, Certified Public Accountant Registration No. 5339 of PricewaterhouseCoopers ABAS Company Limited gave the opinion with no condition that the financial statement of the Fund was audited correctly in accordance with generally accepted auditing standards.


Past Performance

As of December 31, 2015, the Fund has net asset value at Baht 599,687,915 or equivalent to the net asset value of Baht 9.9450 per unit. The invested properties or possessed by the Fund are as follow: 2015 2014 List of Property Book Value/

Market Value (Baht)

Percentage of the Net

Asset Value

Book Value/ Market

Value (Baht)

Percentage of the Net

Asset Value Assets 1. Bank Deposit 25,486,389 4.2499 36,234,109 5.7933 2. Investment in Bank of

Thailand Bonds - -

3. Investment in the real property

576,080,000 96.0633 595,900,000 95.2753 4. Other assets

Rental receivable - - - - Interest receivable 7,370 0.0012 14,627 0.0023 Deferred debit 302,226 0.0504 360,014 0.0576 Other receivable 8,945,061 1.4916 7,331,090 1.1721 Total assets 617,702,768 103.0040 639,839,840 102.3006

Liabilities Accrued expenses (1,838,469) (0.3066) (1,441,115) (0.2304) Other current liabilities (16,176,384) (2.6975) (12,948,129) (2.0702) Total liabilities (14,389,244) (3.0040) (14,389,244) (2.3006)

Net asset value of the Fund 599,687,915 100.00 625,450,596 100.00 Year 2015 2014

Number of investment units 60,300,000 60,300,000 Value of investment unit 9.9450 10.3723


Overall performance of The Fund in the previous year (during the period from January 1, 2015,

to December 31, 2015) shows the Fund has total revenue at Baht 44,584,694 and total

expenses at Baht 8,317,375. As a result, the net revenue is Baht 36,267,319, therefore, the fund

announced the dividend payment for the operational result for the period from January 1, 2015,

to December 31, 2015, The Fund has a net loss which has not been received obtained from the

price appraiser during the period in the amount of Baht 19,820,000. The value of the investment

in real properties in the most recent period of the fund is equivalent to Baht 576,080,000.

AUDITOR’S REPORT

To the Unitholders of 101 Montri Storage Property Fund

I have audited the accompanying financial statements of 101 Montri Storage Property Fund,

which comprise the balance sheet and the details of investments as at 31 December 2015, and the

related statements of income, changes in net assets, cash flows and significant financial information

for the year then ended, and a summary of significant accounting policies and other notes.

Management’s Responsibility for the Financial Statements

The Fund’s management is responsible for the preparation and fair presentation of these

financial statements in accordance with Thai Financial Reporting Standards, and for such

internal control as the Fund’s management determines is necessary to enable the preparation of

financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with Thai Standards on Auditing. Those standards require

that I comply with ethical requirements and plan and perform the audit to obtain reasonable

assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and

disclosures in the financial statements. The procedures selected depend on the auditor’s

judgment, including the assessment of the risks of material misstatement of the financial

statements, whether due to fraud or error. In making those risk assessments, the auditor

considers internal control relevant to the entity’s preparation and fair presentation of the

financial statements in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the

entity’s internal control. An audit also includes evaluating the appropriateness of accounting

policies used and the reasonableness of accounting estimates made by management, as well

as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a

basis for my audit opinion.

Opinion

In my opinion, the financial statements referred to above present fairly, in all material respects,

the financial position of 101 Montri Storage Property Fund as at 31 December 2015, and its

results of operations and cash flows for the year then ended in accordance with Thai Financial

Reporting Standards.

Boonlert Kamolchanokkul

Certified Public Accountant (Thailand) No. 5339

PricewaterhouseCoopers ABAS Ltd.

Bangkok

12 February 2016

101 MONTRI STORAGE PROPERTY FUND

FINANCIAL STATEMENTS

31 DECEMBER 2015


Balance Sheet

As at 31 December 2015

2015 2014

Notes Baht Baht

Assets

Investment in properties at fair value

(at cost of Baht 586,000,000) 6 576,080,000 595,900,000

Cash and cash equivalents 7 25,486,389 36,234,109

Rental receivable 6,881,722 -

Interest receivable 7,370 14,627

Other receivable 8,945,061 7,331,090

Deferred expenses 302,226 360,014

Total assets 617,702,768 639,839,840

Liabilities

Accrued expenses 11 1,838,469 1,441,115

Other current liabilities 16,176,384 12,948,129

Total liabilities 18,014,853 14,389,244

Net assets 599,687,915 625,450,596

Net assets:

Capital received from unitholders

(60,300,000 units, Baht 10 each) 8 603,000,000 603,000,000

(Deficit) retained earnings 8 (3,312,085) 22,450,596

Net assets 599,687,915 625,450,596

Net assets per unit (Baht) 9.9450 10.3723

Number of units outstanding at the end of the year (units) 60,300,000 60,300,000

The notes to financial statements from pages 9 to 21 are an integral part of these financial statements.

3

101 M

on

tri

Sto

rage

Pro

per

ty F

un

d

Det

ail

s of

Inves

tmen

ts

As

at

31 D

ecem

ber

2015

Typ

e of

inves

tmen

t

2015

2014

2015

2014

2015

2014

Bah

tB

ah

tB

ah

tB

ah

t%

%

Inves

tmen

t in

pro

per

ties

(N

ote

6)

Lan

d a

nd b

uil

din

gs

whic

h c

onsi

sted

of

1

) 79 p

lots

of

land

, to

tal

area

of

39

-1-5

6 r

ai a

nd

2

) w

areh

ouse

s an

d o

ther

buil

din

gs,

tota

ling 1

3 b

uil

din

gs,

to

tal

area

of

44,5

25 s

qm

.5

86

,00

0,0

00

58

6,0

00

,00

05

76

,08

0,0

00

59

5,9

00

,00

01

00

10

0

Tota

l in

ves

tmen

t in

pro

per

ties

58

6,0

00

,00

05

86

,00

0,0

00

57

6,0

80

,00

05

95

,90

0,0

00

10

01

00 4

Cost

Fair

valu

eP

erce

nta

ge o

f in

ves

tmen

t

The

note

s to

fin

anci

al s

tate

men

ts f

rom

pag

es 9

to 2

1 a

re a

n i

nte

gra

l p

art

of

thes

e fi

nan

cial

sta

tem

ents

.


Statement of Income

2015 2014

Notes Baht Baht

Investment income

Rental income 44,514,522 48,000,000

Interest income 70,172 29,340

Total income 44,584,694 48,029,340

Expenses

Management fee 10, 11 3,985,255 4,032,539

Trustee fee 10 132,842 134,418

Registrar fee 10, 11 664,209 672,090

Amortisation of deferred expenses 621,736 2,224,152

Professional fee 341,900 335,070

Property tax 1,613,970 1,750,005

Counsel fee 404,920 -

Other expenses 552,543 20,618

Total expenses 8,317,375 9,168,892

Net investment income 36,267,319 38,860,448

Net loss from investments

Net unrealised loss from investments 6 (19,820,000) (3,100,000)

Total net unrealised loss from investments (19,820,000) (3,100,000)

Net increase in net assets from operations 16,447,319 35,760,448

For the year ended 31 December 2015


5


Statement of Changes in Net Assets


2015 2014

Note Baht Baht

Increase in net assets from operations

during the year


Net unrealised loss from investments (19,820,000) (3,100,000)


Dividend paid 9 (42,210,000) (42,210,000)

Net decrease in net assets

during the year (25,762,681) (6,449,552)

Net assets at the beginning of the year 625,450,596 631,900,148

Net assets at the end of the year 599,687,915 625,450,596


6


Statement of Cash Flows


2015 2014

Notes Baht Baht

Cash flows from operating activities


Adjustments to reconcile net increase in net assets

from operations to net cash provided by

operating activities

(Increase) decrease in rental receivable (6,881,722) 12,000,000

Decrease (increase) in interest receivable 7,257 (227)

Increase in deferred expenses (563,948) (778,549)

Increase in other receivable (1,613,971) (1,750,005)

Increase in accrued expenses 397,354 47,902

Increase in other current liabilities 3,228,255 3,500,010


Net unrealised loss from investments 6 19,820,000 3,100,000

Net cash provided by operating activities 31,462,280 54,103,731

Cash flows from financing activities

Dividend paid 9 (42,210,000) (42,210,000)

Net cash used in financing activities (42,210,000) (42,210,000)

Net increase in cash and cash equivalents (10,747,720) 11,893,731

Cash and cash equivalents at the beginning of the year 36,234,109 24,340,378

Cash and cash equivalents at the end of the year 25,486,389 36,234,109


7


Significant Financial Information


2015 2014 2013 2012 2011 2010

Baht Baht Baht Baht Baht Baht

Operating performance (per unit)

Net assets value at the beginning of the year 10.3723 10.4792 10.6046 10.6359 10.5159 10.6418

Income from investment activities:

Net investment income 0.6014 0.6445 0.6111 0.6632 0.7178 0.7200

Net unrealised (loss) gain

from investments (0.3287) (0.0514) (0.0365) 0.0055 0.1022 (0.1459)

Total income from investment activities 0.2727 0.5931 0.5746 0.6687 0.8200 0.5741

Less Dividend paid (0.7000) (0.7000) (0.7000) (0.7000) (0.7000) (0.7000)

Net assets value at the end of the year 9.9450 10.3723 10.4792 10.6046 10.6359 10.5159

Ratio of net profit to average net

assets value during the year (%) 2.6513 5.6969 5.4597 6.3226 7.8492 5.4284

Significant financial ratios and

additional information

Net assets value at the end of the year (Baht) 599,687,915 625,450,596 631,900,148 639,462,016 641,346,380 634,110,296

Ratio of total expenses to

average net assets value during the year (%) 1.3407 1.4607 1.7619 1.9607 1.3028 1.2133

Ratio of investment income to average net


Ratios of weighted average investment purchases

and sales during the year to average

net assets value during the year (%) - - - 37.8900 0.3700 0.9300

Average net assets value during

the year (Baht) 620,357,388 627,717,859 634,611,179 637,801,126 629,947,944 637,652,881


8


Notes to the Financial Statements


9

1 General information

101 Montri Storage Property Fund (“the Fund”) was registered on 30 June 2009 with

indefinite expiration date. The purpose of the Fund is to raise funds from the investors to

invest in properties which consist of land and buildings for use as storages.

CIMB-Principal Asset Management Company Limited is the Fund’s Management

Company and Citibank N.A. has been appointed as the Fund’s Trustee.

These financial statements were authorised for issue by Fund’s management on 12 February

2016.

2 Accounting policies

The principal accounting policies adopted in the preparation of these financial statements

are set out below:

2.1 Basis of preparation

The financial statements have been prepared in accordance with Thai generally

accepted accounting principles under the Accounting Act B.E. 2543, being those

Thai Financial Reporting Standards issued under the Accounting Professions Act

B.E. 2547, and the financial reporting requirements of the Securities and Exchange

Commission. In addition, the financial statements have been prepared under the

basis and format as required by the Thai Accounting Standard No. 106 “Accounting

for Investment Companies”. The primary financial statements (i.e. balance sheet,

the details of investments, statement of income, statement of changes in net assets,

statement of cash flows and significant financial information) are prepared in the

full format as required by the Securities and Exchange Commission.

The financial statements have been prepared under the historical cost convention

except as disclosed in the accounting policies below.

The preparation of financial statements in conformity with Thai generally accepted

accounting principles requires the use of certain critical accounting estimates. It also

requires management to exercise its judgement in the process of applying the

Fund’s accounting policies. The areas involving a higher degree of judgement or

complexity, or areas where assumptions and estimates are significant to the

financial statements are disclosed in Note 4 to financial statements.

An English version of the financial statements has been prepared from the statutory

financial statements that are in the Thai language. In the event of a conflict or a

difference in interpretation between the two languages, the Thai language statutory

financial statements shall prevail.




10

2 Accounting policies (Cont’d)

2.2 New financial reporting standards and revised financial reporting standards

2.2.1 New financial reporting standards and revised financial reporting standards

which are effective on 1 January 2015 and relevant to the Fund.

a) Financial reporting standard, which has a significant impact to the

Fund is as follows:

TFRS 13 Fair value measurement

TFRS 13 aims to improve consistency and reduce complexity by

providing a precise definition of fair value and a single source of fair

value measurement and disclosure requirements for use across TFRSs.

This standard has no impact to the Fund, except for disclosures.

b) Financial reporting standards with minor changes and do not have

impact to the Fund are as follows:

TAS 7 (revised 2014) Statement of cash flows

TAS 8 (revised 2014) Accounting policies, changes in

accounting estimates and errors

TAS 10 (revised 2014) Events after the reporting period

TAS 17 (revised 2014) Leases

TAS 18 (revised 2014) Revenue

TAS 24 (revised 2014) Related party disclosures

TAS 37 (revised 2014) Provisions, contingent liabilities and

contingent assets

TFRS 5 (revised 2014) Non-current asset held for sale and

discontinued operations

TFRS 8 (revised 2014) Operating segments

TSIC 15 (revised 2014) Operating leases - Incentives

TSIC 27 (revised 2014) Evaluating the substance of transactions

involving the legal form of a lease

TFRIC 1 (revised 2014) Changes in existing decommissioning,

restoration and similar liabilities

TFRIC 4 (revised 2014) Determining whether an arrangement

contains a lease

TFRIC 5 (revised 2014) Rights to interests arising from

decommissioning, restoration and

environmental rehabilitation funds

TFRIC 10 (revised 2014) Interim financial reporting and impairment

TFRIC 15 (revised 2014) Agreements for the construction of real estate

TFRIC 18 (revised 2014) Transfers of assets from customers




11



(Cont’d)

2.2.2 New financial reporting standards, revised accounting standards and

revised financial reporting standards which are effective on 1 January

2016 and relevant to the Fund and are not early adopted:

a) Financial reporting standard, which has an impact to the Fund is as

follows:


TAS 24 (revised 2015), ‘Related party disclosures’ includes an entity

that provides key management personnel services to the reporting

entity or to the parent of the reporting entity (the ‘management

entity’). Disclosure of the amounts charged to the reporting entity is

required. The Fund’s management has assessed and determined that

such revised accounting standard will not significantly impact the

financial statements being presented.



TAS 1 (revised 2015) Presentation of financial statements


TAS 8 (revised 2015)

Accounting policies, changes in





TAS 34 (revised 2015) Interim financial reporting


contingent assets

TFRS 5 (revised 2015) Non-current assets held for sale and










12



(Cont’d)



2016 and relevant to the Fund and are not early adopted: (Cont’d)


impact to the Fund are as follows: (Cont’d)


contains a lease




TFRIC 10 (revised 2015) Interim financial reporting and

impairment

TFRIC 15 (revised 2015) Agreements for the construction of real

estate


2.3 Investment in properties

Investment in properties is stated at fair value. The Management Company measured

their fair value as at first balance sheet date at the acquisition cost of the

properties. At the subsequent balance sheet dates, they are presented at fair value

which is based on appraisal value by independent valuers approved by the

Securities and Exchange Commission. The Management Company will conduct

appraisal of properties every two years from the date of the appraisal for purchase or

lease of the properties and will conduct a review of appraisal every year after the

date of the latest appraisal. The Management Company will not appoint any

appraiser to appraise the property or leased property for more than 2 consecutive

times.

Unrealised gain or loss from changing in fair value of investment in properties will be

included in the statement of income in that period.

2.4 Cash and cash equivalents

Cash and cash equivalents include savings account deposits with banks and other

short-term highly liquid investment with maturity of three months or less from the

date of acquisition.




13


2.5 Deferred expenses

Deferred expenses such as the fee for initial offering, legal consulting fee, property

appraisal service fee etc., are charged to expense on a straight-line basis over 1 year

and 5 years.

2.6 Revenues and expenses recognition

Rental income under operating leases is recognised in the statement of income on

the straight-line basis over the lease term.

Interest income is recognised on an accrual basis based on the effective interest

rate.

Expenses are recognised on an accrual basis.

2.7 Income taxes

The Fund is exempted from Thailand corporate income tax. No provision for

corporate income tax has been made in the accompanying financial statements.

3 Dividend payment policy

Regulations, policy and criteria for paying dividends to unitholders are as follows:

1) If the Fund has net profit in each year, the Management Company shall pay

dividend to unitholders at the rate of no less than 90 percent of the adjusted net

profit. The adjusted net profit means the net profit that deducts unrealised gain

from appraisal or reviewed appraisal of real estate or leasehold rights to real estate

including other adjustments to align with cash status of the Fund according to the

guideline of Securities and Exchange Commission.

2) If the Fund has accumulated profits, the Management Company may pay dividend

to unitholders out of the accumulated profits provided that dividend payment

under (1) must not cause increase in its deficit in the period which dividend is

paid.

In considering the payment of dividends, if the value of interim dividend per unit to be

paid is lower than or equal to Baht 0.10, the Management Company reserves the right not

to pay dividend at that time and to bring such dividend forward for payment together with

the year end dividend payment.




14

4 Critical accounting estimates, assumptions and judgments

The Fund makes estimates and assumptions concerning the future. The resulting

accounting estimates will, by definition, seldom equal the related actual results. The

estimates and assumptions that have a significant risk of causing a material adjustment

to the carrying amounts of assets and liabilities within the next financial year are

outlined below.

Fair value of investment in properties

The fair value of investment in properties that are not traded in an active market is

determined by using discounted expected future cash flows received from investment in

properties by the appropriate discount rate which reflect related risks. The Fund engages

independent appraiser to assess the fair value of properties.

5 Capital risk management

The Fund’s objectives when managing capital are to safeguard the Fund’s ability to

continue as a going concern in order to provide returns for unitholders and benefits for other

stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Fund may adjust the amount of

dividends paid to unitholders, return capital to unitholders, issue new units or sell assets

to reduce debt.




15

6 Investment in properties at fair value

2015 2014

Baht Baht

Investment in properties at the beginning of the year 595,900,000 599,000,000

Net unrealised loss from the revaluation

of investment during the year (19,820,000) (3,100,000)

Investment in properties at the end of the year 576,080,000 595,900,000

On 15 July 2009, the Fund invested in properties consisted of 1) 79 plots of land, total

area is approximately 39-1-56 rai and 2) warehouses and other buildings, totaling

13 buildings, total area is approximately 44,525 sqm., totally amount of Baht 586

million. The land and buildings are located at 4976 and 4984-86, Klongjun Sub-district,

Bangkapi District, Bangkok.

For the year ended 31 December 2015, the Fund hired an independent appraiser, Real

Estate Appraisal Co., Ltd., to appraise its investment in properties by using the Income

Approach derived from cumulative of present value of net income based on the period

of 10 years and its present value of such assets at the end of year 10th, report dated

18 January 2016. The valuation technique used significant unobservable inputs such

that the Fund classified the fair value measurement as Level 3 of fair value hierarchy

according to TFRS 13 Fair value measurement.

As at 31 December 2015, the Fund adjusted investment in properties to fair value of

Baht 576.08 million and recognised net unrealised loss from investment in the

statement of income for the year at Baht 19.82 million.

The Fund has an operating lease agreement in respect of the lease of land, buildings,

equipment and system. The term of the agreement is initially 3 years starting from

14 October 2015 onward and renewable for 3 years starting from the date of expiration

of agreement. As at 31 December 2015, future minimum rental income to be generated

under this operating lease is as follows.

In Million Baht

Less than 1 year 30.43

2 - 3 years 59.12




16

6 Investment in properties at fair value (Cont’d)

Valuation processes

The Management Company arranges the valuation of investment in properties by

independent professionally qualified valuer (“independent valuer”) who hold a

recognised relevant professional qualification and has recent experience in the segment

of the investment properties valued. The independent valuer reports directly to the

Management Company. For financial reporting purpose, the Management Company

reviews the valuation performed by the independent valuer. Review of valuation

process and result is held between the Management Company and the Trustee which

will evaluate in each accounting period, in line with the Fund’s reporting dates.

The main information that the appraiser used for fair value assessment Level 3 such as

discount rate was determined from business type, the location of project, generated cash

flow, competitive market and risk-free return rate. The appraiser applied 11% of discounted

cash flow for valued asset based on yield rate of government bond plus market,

operational, and liquidity risk.

Changes in fair value are analysed at each reporting date by the Management Company

and the Trustee. As part of this review, the Management Company presents valuation

assumption of the independent valuer to explain the reasons for changes in fair value.

There were no changes to the valuation techniques during the year.

Sensitivity analysis for each significant assumptions

Impact on

fair value

increase/

(decrease)

2015

Million Baht

Discount rate

Discount rate, decrease of 0.50 percent 18.80

Discount rate, increase of 0.50 percent (18.07)

Capitalisation rate

Capitalisation rate, decrease of 0.50 percent 21.95

Capitalisation rate, increase of 0.50 percent (19.39)

Rental growth rate

Rental growth rate, decrease of 0.50 percent (5.55)

Rental growth rate, increase of 0.50 percent 5.56




17

7 Cash and cash equivalents

As at 31 December 2015 and 2014, the Fund has the details of cash and cash equivalents as

follows:

Principal Interest rate per annum

2015 2014 2015 2014

Baht Baht % %

Deposits in bank saving accounts

- Citibank N.A. 25,486,389 36,234,109 0.05 - 0.10 0.10

Total 25,486,389 36,234,109

8 Unitholders’ equity

As at 31 December 2015 and 2014, there are 60,300,000 units of Baht 10 par value

registered, issued and paid-up.

Movements in capital account are as follows:

2015 2014

Number of Number of

units Baht units Baht

Units registered, issued and

paid-up 60,300,000 603,000,000 60,300,000 603,000,000

Beginning balance 60,300,000 603,000,000 60,300,000 603,000,000

Issue of units - - - -

Ending balance 60,300,000 603,000,000 60,300,000 603,000,000

Movements in retained earnings are as follows:

2015 2014

Baht Baht

Beginning balance 22,450,596 28,900,148

Add Net increase in net assets from operations

during the year 16,447,319 35,760,448

Less Dividend paid to unitholders (Note 9) (42,210,000) (42,210,000)

Ending balance (3,312,085) 22,450,596




18

9 Dividend

The detail of dividends for the year ended 31 December 2015 is as follows:

Per unit Total

No. The operation for period Payment date Baht Million Baht

1 1 July 2014 - 31 December 2014 25 March 2015 0.35 21.10

2 1 January 2015 - 30 June 2015 24 September 2015 0.35 21.10

42.20


Per unit Total




42.20

10 Fees

The management fee, trustee fee, and registrar fee are calculated as follows:

Management fee

The Management Company is entitled to receive a monthly management fee from the

Fund at a rate not exceeding 1.00% per annum (exclusive of value added tax, specific

business tax or any other similar tax) of the net assets value of the Fund as calculated by

the Management Company and verified by the Trustee.

Trustee fee

The Trustee is entitled to receive a monthly remuneration at a rate not exceeding 0.50%

per annum (exclusive of value added tax, specific business tax or any other similar tax)

of the net assets value of the Fund as calculated by the Management Company and

verified by the Trustee.

Registrar fee

The registrar fee shall be at a rate not exceeding 0.10% per annum (exclusive of value

added tax, specific business tax or any other similar tax) of the net assets value of the

Fund as calculated by the Management Company and verified by the Trustee.




19

11 Related party transactions

Enterprises and individuals that, directly or indirectly through one or more intermediaries,

control, or are controlled by, or are under common control with, the Fund, including

holding companies, subsidiaries and fellow subsidiaries are related parties of the Fund.

Associates and individuals owning, directly or indirectly, an interest in the voting power

of the Fund that gives them significant influence over the enterprise, key management

personnel, including directors and officers of the Fund and close members of the family

of these individuals and companies associated with these individuals also constitute

related parties.

In considering each possible related party relationship, attention is directed to the

substance of the relationship, and not merely the legal form.

Types of relationship of related company are as follows:

Name of company Type of relationship

CIMB-Principal Asset

Management Co., Ltd.

The Fund’s Management Company and Registrar

The following significant transactions were carried out with related parties:

Significant income and expenses for the years ended 31 December 2015 and 2014 were as

follows:

2015 2014

Baht Baht


Management fee 3,985,255 4,032,539

Registrar fee 664,209 672,090

Balances with related parties as at 31 December 2015 and 2014 were as follows:

2015 2014

Baht Baht


Accrued management fee 989,373 1,010,670

Accrued registrar fee 164,895 168,445




20

12 Financial risk management

12.1 Financial risk factors

As at 31 December 2015, the principal financial risks faced by the Fund are

interest rate risk, credit risk, and liquidity risk.

Interest rate risk

Interest rate risk is the risks associated with the effects of fluctuations in the

prevailing levels of market interest rates on its financial instruments. The

financial asset that potentially subjects the Fund to the interest rate risk is deposit

with banks.

Credit risk

Credit risk is the risk that counterparties might not discharge their obligation

causing the Fund to incur a financial loss. Credit risk arises from risk in the

collectability of lease rental from counterparties. The Fund have a concentration

of credit risk with respect to an account receivable as it has only one customer.

The carrying amount of financial assets as recorded in balance sheet represents

the Fund’s maximum exposure to credit risk.

Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash, the

availability of funding through an adequate amount of funding from the

unitholders which is sufficient for the activities of the Fund.

12.2 Fair value estimation

The carrying amounts of the Fund’s financial assets and liabilities as at 31

December 2015 as presented in the financial statements approximate their fair

value since they are predominantly subject to market interest rate and will be due

in a short period.




21

13 Segment information

Operating segments are reported in a manner consistent with the internal reporting

provided to the chief operating decision-maker. The chief operating decision-maker,

who is responsible for allocating resources and assessing performance of the operating

segments, has been identified as that makes strategic decisions.

The Fund operates in business which is the investment in properties and the business is

only operated in Thailand. Income and expenses from this segment are the same amount

with the statement of income. Therefore, the presentation of segment information is not

necessary.

14 Commitments

The Fund is committed to pay a management fee, trustee fee, and registrar fee under the

terms and conditions specified in the agreements or memorandum.

AUDITOR’S REPORT

To the Unitholders of 101 Montri Storage Property Fund

I have audited the accompanying financial statements of 101 Montri Storage Property Fund,

which comprise the balance sheet and the details of investments as at 31 December 2015, and the

related statements of income, changes in net assets, cash flows and significant financial information

for the year then ended, and a summary of significant accounting policies and other notes.

Management’s Responsibility for the Financial Statements

The Fund’s management is responsible for the preparation and fair presentation of these

financial statements in accordance with Thai Financial Reporting Standards, and for such

internal control as the Fund’s management determines is necessary to enable the preparation of

financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with Thai Standards on Auditing. Those standards require

that I comply with ethical requirements and plan and perform the audit to obtain reasonable

assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and

disclosures in the financial statements. The procedures selected depend on the auditor’s

judgment, including the assessment of the risks of material misstatement of the financial

statements, whether due to fraud or error. In making those risk assessments, the auditor

considers internal control relevant to the entity’s preparation and fair presentation of the

financial statements in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the

entity’s internal control. An audit also includes evaluating the appropriateness of accounting

policies used and the reasonableness of accounting estimates made by management, as well

as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a

basis for my audit opinion.

Opinion

In my opinion, the financial statements referred to above present fairly, in all material respects,

the financial position of 101 Montri Storage Property Fund as at 31 December 2015, and its

results of operations and cash flows for the year then ended in accordance with Thai Financial

Reporting Standards.

Boonlert Kamolchanokkul

Certified Public Accountant (Thailand) No. 5339

PricewaterhouseCoopers ABAS Ltd.

Bangkok

12 February 2016

101 MONTRI STORAGE PROPERTY FUND

FINANCIAL STATEMENTS

31 DECEMBER 2015


Balance Sheet


2015 2014

Notes Baht Baht

Assets

Investment in properties at fair value

(at cost of Baht 586,000,000) 6 576,080,000 595,900,000

Cash and cash equivalents 7 25,486,389 36,234,109

Rental receivable 6,881,722 -

Interest receivable 7,370 14,627

Other receivable 8,945,061 7,331,090

Deferred expenses 302,226 360,014

Total assets 617,702,768 639,839,840

Liabilities

Accrued expenses 11 1,838,469 1,441,115

Other current liabilities 16,176,384 12,948,129

Total liabilities 18,014,853 14,389,244

Net assets 599,687,915 625,450,596

Net assets:

Capital received from unitholders

(60,300,000 units, Baht 10 each) 8 603,000,000 603,000,000

(Deficit) retained earnings 8 (3,312,085) 22,450,596

Net assets 599,687,915 625,450,596

Net assets per unit (Baht) 9.9450 10.3723

Number of units outstanding at the end of the year (units) 60,300,000 60,300,000


3


Details of Investments


Type of investment

2015 2014 2015 2014 2015 2014

Baht Baht Baht Baht % %

Investment in properties (Note 6)

Land and buildings which consisted of

1) 79 plots of land, total area of 39-1-56 rai and

2) warehouses and other buildings, totaling 13 buildings,

total area of 44,525 sqm. 586,000,000 586,000,000 576,080,000 595,900,000 100 100

Total investment in properties 586,000,000 586,000,000 576,080,000 595,900,000 100 100

4

Cost Fair value Percentage of investment



Statement of Income

2015 2014

Notes Baht Baht

Investment income

Rental income 44,514,522 48,000,000

Interest income 70,172 29,340

Total income 44,584,694 48,029,340

Expenses

Management fee 10, 11 3,985,255 4,032,539

Trustee fee 10 132,842 134,418

Registrar fee 10, 11 664,209 672,090


Professional fee 341,900 335,070

Property tax 1,613,970 1,750,005

Counsel fee 404,920 -

Other expenses 552,543 20,618

Total expenses 8,317,375 9,168,892


Net loss from investments

Net unrealised loss from investments 6 (19,820,000) (3,100,000)

Total net unrealised loss from investments (19,820,000) (3,100,000)




5


Statement of Changes in Net Assets


2015 2014

Note Baht Baht

Increase in net assets from operations

during the year


Net unrealised loss from investments (19,820,000) (3,100,000)


Dividend paid 9 (42,210,000) (42,210,000)

Net decrease in net assets

during the year (25,762,681) (6,449,552)

Net assets at the beginning of the year 625,450,596 631,900,148

Net assets at the end of the year 599,687,915 625,450,596


6


Statement of Cash Flows


2015 2014

Notes Baht Baht

Cash flows from operating activities


Adjustments to reconcile net increase in net assets

from operations to net cash provided by

operating activities

(Increase) decrease in rental receivable (6,881,722) 12,000,000

Decrease (increase) in interest receivable 7,257 (227)

Increase in deferred expenses (563,948) (778,549)

Increase in other receivable (1,613,971) (1,750,005)

Increase in accrued expenses 397,354 47,902

Increase in other current liabilities 3,228,255 3,500,010


Net unrealised loss from investments 6 19,820,000 3,100,000

Net cash provided by operating activities 31,462,280 54,103,731

Cash flows from financing activities

Dividend paid 9 (42,210,000) (42,210,000)

Net cash used in financing activities (42,210,000) (42,210,000)

Net increase in cash and cash equivalents (10,747,720) 11,893,731

Cash and cash equivalents at the beginning of the year 36,234,109 24,340,378

Cash and cash equivalents at the end of the year 25,486,389 36,234,109


7


Significant Financial Information


2015 2014 2013 2012 2011 2010

Baht Baht Baht Baht Baht Baht

Operating performance (per unit)

Net assets value at the beginning of the year 10.3723 10.4792 10.6046 10.6359 10.5159 10.6418

Income from investment activities:

Net investment income 0.6014 0.6445 0.6111 0.6632 0.7178 0.7200

Net unrealised (loss) gain

from investments (0.3287) (0.0514) (0.0365) 0.0055 0.1022 (0.1459)

Total income from investment activities 0.2727 0.5931 0.5746 0.6687 0.8200 0.5741

Less Dividend paid (0.7000) (0.7000) (0.7000) (0.7000) (0.7000) (0.7000)

Net assets value at the end of the year 9.9450 10.3723 10.4792 10.6046 10.6359 10.5159

Ratio of net profit to average net


Significant financial ratios and

additional information

Net assets value at the end of the year (Baht) 599,687,915 625,450,596 631,900,148 639,462,016 641,346,380 634,110,296

Ratio of total expenses to

average net assets value during the year (%) 1.3407 1.4607 1.7619 1.9607 1.3028 1.2133

Ratio of investment income to average net


Ratios of weighted average investment purchases

and sales during the year to average

net assets value during the year (%) - - - 37.8900 0.3700 0.9300

Average net assets value during

the year (Baht) 620,357,388 627,717,859 634,611,179 637,801,126 629,947,944 637,652,881


8




9

1 General information

101 Montri Storage Property Fund (“the Fund”) was registered on 30 June 2009 with

indefinite expiration date. The purpose of the Fund is to raise funds from the investors to

invest in properties which consist of land and buildings for use as storages.

CIMB-Principal Asset Management Company Limited is the Fund’s Management

Company and Citibank N.A. has been appointed as the Fund’s Trustee.

These financial statements were authorised for issue by Fund’s management on 12 February

2016.

2 Accounting policies

The principal accounting policies adopted in the preparation of these financial statements

are set out below:

2.1 Basis of preparation

The financial statements have been prepared in accordance with Thai generally

accepted accounting principles under the Accounting Act B.E. 2543, being those

Thai Financial Reporting Standards issued under the Accounting Professions Act

B.E. 2547, and the financial reporting requirements of the Securities and Exchange

Commission. In addition, the financial statements have been prepared under the

basis and format as required by the Thai Accounting Standard No. 106 “Accounting

for Investment Companies”. The primary financial statements (i.e. balance sheet,

the details of investments, statement of income, statement of changes in net assets,

statement of cash flows and significant financial information) are prepared in the

full format as required by the Securities and Exchange Commission.

The financial statements have been prepared under the historical cost convention

except as disclosed in the accounting policies below.

The preparation of financial statements in conformity with Thai generally accepted

accounting principles requires the use of certain critical accounting estimates. It also

requires management to exercise its judgement in the process of applying the

Fund’s accounting policies. The areas involving a higher degree of judgement or

complexity, or areas where assumptions and estimates are significant to the

financial statements are disclosed in Note 4 to financial statements.

An English version of the financial statements has been prepared from the statutory

financial statements that are in the Thai language. In the event of a conflict or a

difference in interpretation between the two languages, the Thai language statutory

financial statements shall prevail.




10



2.2.1 New financial reporting standards and revised financial reporting standards

which are effective on 1 January 2015 and relevant to the Fund.

a) Financial reporting standard, which has a significant impact to the

Fund is as follows:

TFRS 13 Fair value measurement

TFRS 13 aims to improve consistency and reduce complexity by

providing a precise definition of fair value and a single source of fair

value measurement and disclosure requirements for use across TFRSs.

This standard has no impact to the Fund, except for disclosures.




TAS 8 (revised 2014) Accounting policies, changes in







contingent assets

TFRS 5 (revised 2014) Non-current asset held for sale and


TFRS 8 (revised 2014) Operating segments







contains a lease




TFRIC 10 (revised 2014) Interim financial reporting and impairment

TFRIC 15 (revised 2014) Agreements for the construction of real estate





11



(Cont’d)



2016 and relevant to the Fund and are not early adopted:

a) Financial reporting standard, which has an impact to the Fund is as

follows:


TAS 24 (revised 2015), ‘Related party disclosures’ includes an entity

that provides key management personnel services to the reporting

entity or to the parent of the reporting entity (the ‘management

entity’). Disclosure of the amounts charged to the reporting entity is

required. The Fund’s management has assessed and determined that

such revised accounting standard will not significantly impact the

financial statements being presented.



TAS 1 (revised 2015) Presentation of financial statements


TAS 8 (revised 2015)

Accounting policies, changes in





TAS 34 (revised 2015) Interim financial reporting


contingent assets

TFRS 5 (revised 2015) Non-current assets held for sale and










12



(Cont’d)



2016 and relevant to the Fund and are not early adopted: (Cont’d)


impact to the Fund are as follows: (Cont’d)


contains a lease




TFRIC 10 (revised 2015) Interim financial reporting and

impairment

TFRIC 15 (revised 2015) Agreements for the construction of real

estate


2.3 Investment in properties

Investment in properties is stated at fair value. The Management Company measured

their fair value as at first balance sheet date at the acquisition cost of the

properties. At the subsequent balance sheet dates, they are presented at fair value

which is based on appraisal value by independent valuers approved by the

Securities and Exchange Commission. The Management Company will conduct

appraisal of properties every two years from the date of the appraisal for purchase or

lease of the properties and will conduct a review of appraisal every year after the

date of the latest appraisal. The Management Company will not appoint any

appraiser to appraise the property or leased property for more than 2 consecutive

times.

Unrealised gain or loss from changing in fair value of investment in properties will be

included in the statement of income in that period.

2.4 Cash and cash equivalents

Cash and cash equivalents include savings account deposits with banks and other

short-term highly liquid investment with maturity of three months or less from the

date of acquisition.




13


2.5 Deferred expenses

Deferred expenses such as the fee for initial offering, legal consulting fee, property

appraisal service fee etc., are charged to expense on a straight-line basis over 1 year

and 5 years.

2.6 Revenues and expenses recognition

Rental income under operating leases is recognised in the statement of income on

the straight-line basis over the lease term.

Interest income is recognised on an accrual basis based on the effective interest

rate.

Expenses are recognised on an accrual basis.

2.7 Income taxes

The Fund is exempted from Thailand corporate income tax. No provision for

corporate income tax has been made in the accompanying financial statements.

3 Dividend payment policy

Regulations, policy and criteria for paying dividends to unitholders are as follows:

1) If the Fund has net profit in each year, the Management Company shall pay

dividend to unitholders at the rate of no less than 90 percent of the adjusted net

profit. The adjusted net profit means the net profit that deducts unrealised gain

from appraisal or reviewed appraisal of real estate or leasehold rights to real estate

including other adjustments to align with cash status of the Fund according to the

guideline of Securities and Exchange Commission.

2) If the Fund has accumulated profits, the Management Company may pay dividend

to unitholders out of the accumulated profits provided that dividend payment

under (1) must not cause increase in its deficit in the period which dividend is

paid.

In considering the payment of dividends, if the value of interim dividend per unit to be

paid is lower than or equal to Baht 0.10, the Management Company reserves the right not

to pay dividend at that time and to bring such dividend forward for payment together with

the year end dividend payment.




14

4 Critical accounting estimates, assumptions and judgments

The Fund makes estimates and assumptions concerning the future. The resulting

accounting estimates will, by definition, seldom equal the related actual results. The

estimates and assumptions that have a significant risk of causing a material adjustment

to the carrying amounts of assets and liabilities within the next financial year are

outlined below.

Fair value of investment in properties

The fair value of investment in properties that are not traded in an active market is

determined by using discounted expected future cash flows received from investment in

properties by the appropriate discount rate which reflect related risks. The Fund engages

independent appraiser to assess the fair value of properties.

5 Capital risk management

The Fund’s objectives when managing capital are to safeguard the Fund’s ability to

continue as a going concern in order to provide returns for unitholders and benefits for other

stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Fund may adjust the amount of

dividends paid to unitholders, return capital to unitholders, issue new units or sell assets

to reduce debt.




15

6 Investment in properties at fair value

2015 2014

Baht Baht

Investment in properties at the beginning of the year 595,900,000 599,000,000

Net unrealised loss from the revaluation

of investment during the year (19,820,000) (3,100,000)

Investment in properties at the end of the year 576,080,000 595,900,000

On 15 July 2009, the Fund invested in properties consisted of 1) 79 plots of land, total

area is approximately 39-1-56 rai and 2) warehouses and other buildings, totaling

13 buildings, total area is approximately 44,525 sqm., totally amount of Baht 586

million. The land and buildings are located at 4976 and 4984-86, Klongjun Sub-district,

Bangkapi District, Bangkok.

For the year ended 31 December 2015, the Fund hired an independent appraiser, Real

Estate Appraisal Co., Ltd., to appraise its investment in properties by using the Income

Approach derived from cumulative of present value of net income based on the period

of 10 years and its present value of such assets at the end of year 10th, report dated

18 January 2016. The valuation technique used significant unobservable inputs such

that the Fund classified the fair value measurement as Level 3 of fair value hierarchy

according to TFRS 13 Fair value measurement.

As at 31 December 2015, the Fund adjusted investment in properties to fair value of

Baht 576.08 million and recognised net unrealised loss from investment in the

statement of income for the year at Baht 19.82 million.

The Fund has an operating lease agreement in respect of the lease of land, buildings,

equipment and system. The term of the agreement is initially 3 years starting from

14 October 2015 onward and renewable for 3 years starting from the date of expiration

of agreement. As at 31 December 2015, future minimum rental income to be generated

under this operating lease is as follows.

In Million Baht

Less than 1 year 30.43

2 - 3 years 59.12




16

6 Investment in properties at fair value (Cont’d)

Valuation processes

The Management Company arranges the valuation of investment in properties by

independent professionally qualified valuer (“independent valuer”) who hold a

recognised relevant professional qualification and has recent experience in the segment

of the investment properties valued. The independent valuer reports directly to the

Management Company. For financial reporting purpose, the Management Company

reviews the valuation performed by the independent valuer. Review of valuation

process and result is held between the Management Company and the Trustee which

will evaluate in each accounting period, in line with the Fund’s reporting dates.

The main information that the appraiser used for fair value assessment Level 3 such as

discount rate was determined from business type, the location of project, generated cash

flow, competitive market and risk-free return rate. The appraiser applied 11% of discounted

cash flow for valued asset based on yield rate of government bond plus market,

operational, and liquidity risk.

Changes in fair value are analysed at each reporting date by the Management Company

and the Trustee. As part of this review, the Management Company presents valuation

assumption of the independent valuer to explain the reasons for changes in fair value.

There were no changes to the valuation techniques during the year.

Sensitivity analysis for each significant assumptions

Impact on

fair value

increase/

(decrease)

2015

Million Baht

Discount rate

Discount rate, decrease of 0.50 percent 18.80

Discount rate, increase of 0.50 percent (18.07)

Capitalisation rate

Capitalisation rate, decrease of 0.50 percent 21.95

Capitalisation rate, increase of 0.50 percent (19.39)

Rental growth rate

Rental growth rate, decrease of 0.50 percent (5.55)

Rental growth rate, increase of 0.50 percent 5.56




17

7 Cash and cash equivalents

As at 31 December 2015 and 2014, the Fund has the details of cash and cash equivalents as

follows:

Principal Interest rate per annum

2015 2014 2015 2014

Baht Baht % %

Deposits in bank saving accounts

- Citibank N.A. 25,486,389 36,234,109 0.05 - 0.10 0.10

Total 25,486,389 36,234,109

8 Unitholders’ equity

As at 31 December 2015 and 2014, there are 60,300,000 units of Baht 10 par value

registered, issued and paid-up.

Movements in capital account are as follows:

2015 2014

Number of Number of

units Baht units Baht

Units registered, issued and

paid-up 60,300,000 603,000,000 60,300,000 603,000,000

Beginning balance 60,300,000 603,000,000 60,300,000 603,000,000

Issue of units - - - -

Ending balance 60,300,000 603,000,000 60,300,000 603,000,000

Movements in retained earnings are as follows:

2015 2014

Baht Baht

Beginning balance 22,450,596 28,900,148

Add Net increase in net assets from operations

during the year 16,447,319 35,760,448

Less Dividend paid to unitholders (Note 9) (42,210,000) (42,210,000)

Ending balance (3,312,085) 22,450,596




18

9 Dividend


Per unit Total




42.20


Per unit Total




42.20

10 Fees

The management fee, trustee fee, and registrar fee are calculated as follows:

Management fee

The Management Company is entitled to receive a monthly management fee from the

Fund at a rate not exceeding 1.00% per annum (exclusive of value added tax, specific

business tax or any other similar tax) of the net assets value of the Fund as calculated by

the Management Company and verified by the Trustee.

Trustee fee

The Trustee is entitled to receive a monthly remuneration at a rate not exceeding 0.50%

per annum (exclusive of value added tax, specific business tax or any other similar tax)

of the net assets value of the Fund as calculated by the Management Company and

verified by the Trustee.

Registrar fee

The registrar fee shall be at a rate not exceeding 0.10% per annum (exclusive of value

added tax, specific business tax or any other similar tax) of the net assets value of the

Fund as calculated by the Management Company and verified by the Trustee.




19

11 Related party transactions

Enterprises and individuals that, directly or indirectly through one or more intermediaries,

control, or are controlled by, or are under common control with, the Fund, including

holding companies, subsidiaries and fellow subsidiaries are related parties of the Fund.

Associates and individuals owning, directly or indirectly, an interest in the voting power

of the Fund that gives them significant influence over the enterprise, key management

personnel, including directors and officers of the Fund and close members of the family

of these individuals and companies associated with these individuals also constitute

related parties.

In considering each possible related party relationship, attention is directed to the

substance of the relationship, and not merely the legal form.

Types of relationship of related company are as follows:

Name of company Type of relationship

CIMB-Principal Asset

Management Co., Ltd.

The Fund’s Management Company and Registrar

The following significant transactions were carried out with related parties:

Significant income and expenses for the years ended 31 December 2015 and 2014 were as

follows:

2015 2014

Baht Baht


Management fee 3,985,255 4,032,539

Registrar fee 664,209 672,090

Balances with related parties as at 31 December 2015 and 2014 were as follows:

2015 2014

Baht Baht


Accrued management fee 989,373 1,010,670

Accrued registrar fee 164,895 168,445




20

12 Financial risk management

12.1 Financial risk factors

As at 31 December 2015, the principal financial risks faced by the Fund are

interest rate risk, credit risk, and liquidity risk.

Interest rate risk

Interest rate risk is the risks associated with the effects of fluctuations in the

prevailing levels of market interest rates on its financial instruments. The

financial asset that potentially subjects the Fund to the interest rate risk is deposit

with banks.

Credit risk

Credit risk is the risk that counterparties might not discharge their obligation

causing the Fund to incur a financial loss. Credit risk arises from risk in the

collectability of lease rental from counterparties. The Fund have a concentration

of credit risk with respect to an account receivable as it has only one customer.

The carrying amount of financial assets as recorded in balance sheet represents

the Fund’s maximum exposure to credit risk.

Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash, the

availability of funding through an adequate amount of funding from the

unitholders which is sufficient for the activities of the Fund.

12.2 Fair value estimation

The carrying amounts of the Fund’s financial assets and liabilities as at 31

December 2015 as presented in the financial statements approximate their fair

value since they are predominantly subject to market interest rate and will be due

in a short period.




21

13 Segment information

Operating segments are reported in a manner consistent with the internal reporting

provided to the chief operating decision-maker. The chief operating decision-maker,

who is responsible for allocating resources and assessing performance of the operating

segments, has been identified as that makes strategic decisions.

The Fund operates in business which is the investment in properties and the business is

only operated in Thailand. Income and expenses from this segment are the same amount

with the statement of income. Therefore, the presentation of segment information is not

necessary.

14 Commitments

The Fund is committed to pay a management fee, trustee fee, and registrar fee under the

terms and conditions specified in the agreements or memorandum.

Date post:	29-May-2020
Category:	Documents
Upload:	others
View:	4 times
Download:	0 times

Note from theManagement Company - Principal · Note from theManagement Company To : Unit holders of...

Documents