Annual Report 2007 - CS LoxInfo

12 CS LOXINFO

d is Flat. by
High
Quality
Internet
4 Financial Highlights
Contents
7 Dividend Policy
8 Message from Chairman of the Board
and Chairman of the Executive
Committee
9 Message from Managing Director
12 Report of the Audit Committee
14 Directors and Management Team
20 Corporate Governance
45 Directors’ Shareholding in the Company
and its Subsidiaries of the Year 2007
48 Investment Structure of Shin Group
50 Major Shareholders
51 General Information of the Company and
Subsidiaries
56 Business Overview
72 Major Developments
76 Risk Factors
79 Related Party Transactions
86 Management’s Discussion and Analysis
93 Board of Directors’ Responsibility for
Financial Reporting
94 Auditor’s Report
102 Consolidated and Company Financial
Statements
145 Remuneration of Auditors
146 General Information on Reference
Persons
147 Investor Information
148 Contributions to Society
152 Glossary

The more freedom of connection,
The more unlimited distance.
CS LOXINFO

Internet
Data
Center
CS LOXINFO

Financial Highlights
(Unit : Million Baht)
2007
2006
2005
2004
OPERATING RESULTS
Revenues from Sales and Services 2,518 2,460 2,249 1,982
Total Revenues 2,600 2,512 2,321 2,004
Gross Profit (Loss) 1,218 1,147 1,061 939
Net Profit (Loss) 261 213 196 328
FINANCIAL POSITION
Total Assets 2,368 2,615 3,012 2,561
Total Liabilities 743 807 854 662
Total Shareholders’ equity 1,625 1,808 2,158 1,899
Net Cash Flows from Operation 584 704 530 447
FINANCIAL RATIO
Current Ratio 1.66 1.88 1.88 2.52
Debt to Equity Ratio 0.46 0.45 0.40 0.35
Gross Profit (Loss) Margin 46.86% 45.66% 45.70% 46.85%
Net Profit (Loss) Margin 10.08% 8.46% 8.46% 16.38%
Return on Assets 10.51% 7.56% 7.05% 18.41%
Return on Equity 15.26% 10.72% 9.68% 17.28%
Basic Earning per Share 0.42 0.34 0.31 0.55
Dividend per Share 0.40 0.74 0.45 0.40
Book Value per Share 2.59 2.89 3.45 3.02
No. of Shares (Million Shares) 627 625 625 625
Note: The Copany didn’t restate the year 2004’s comparative financial statements retrospectively for the deferred income tax
accounting policy.
CS LOXINFO

2007
2006
2005
2004
Year
2007
2006
2005
2004
Year
2007
2006
2005
2004
Year
2007
2006
2005
2004
Year
CS LOXINFO

Vision & Mission
Customer
are able
to find or
buy/sell local
products & Services
Target Market
Business
to
Business
Business
to
Consumer
Distribution Channels
• Print Classifies (Daily & Weekly)
• YellowPages Directory
• Websites
• Mobile Service and Call Center 1188
Existing Businesses
• Internet Services
• Print YellowPages Advertising
• Mobile Contents Provider
• Print Classifies (Auto, Job, Real Estate, Education, etc)
Integrated Vision & Mission
Develop the business into services that are extendable from the existing or related businesses aimed at
searching information to buy, sell or exchange in different ways for a variety of products e.g. cars, jobs, home,
education and etc. with type of services that will be able to provide better convenience for customers across
different needs.
CS LOXINFO

Dividend Policy
The Company’s dividend policy
The Company’s dividend policy is to pay dividend no less than 40 percent of net profit after tax, if the
fund is not required elsewhere and subject to the economic and future project of the Company and the
subsidiaries and the payment would have no significant effect on the running of the Company.
The Company’s dividend payments during the past three years are as follows:-
Dividend from Operations 2007 2006 2005
Payout Ratio (%) * 49.10 217.56 143.49
Total of dividend payment (Million Baht) 240.40 462.50 281.25
Dividend per share (Baht) 0.40 0.74 0.45
* Note: Payout Ratio year 2005 and year 2006 calculated from the consolidated net profit of the company (which equivalent
to the stand alone net profit of the company), for Payout Ratio year 2007 calculated from the stand alone net profit
of the company following by the company’ s dividend policy.
• The subsidiaries of the Company’s dividend policy
Loxley Information Services Company Limited, Teleinfo Media Public Company Limited, AD Venture
Company Limited and Watta Classifieds Company Limited its subsidiaries of the Company have the
dividend policy is to pay dividend no less than 50 percent of net profit.
CS LOXINFO

Message from Chairman of the Board
and Chairman of the Executive Committee
Prof. Wongkulpat Snidvongs
na Ayudyha, M.D.
Chairman of the Board
Dr. Dumrong Kasemset
Chairman of the Executive Committee
2007 was another year that CS LoxInfo Public Company Limited could build
a good level of returns to shareholders. On top of the high dividend payout, the
Company was able to allocate 222 million Baht of net profit to repurchase the
shares with an objective to manage shareholder return in the long run.
For 2007’s operating results, the Company reported total revenues of 2,600
million Baht, 55% was from the internet business and 34% was from Teleinfo
Media Public Company Limited who operates the YellowPages business.
As for the new investment in the past year, the Company had invested in a
60% stake in publishing businesses that primarily focused on selling classified ads
for market popular products e.g. cars, jobs, homes, education. In view that such
business is in line with the YellowPages business, which is categorized as another
type of classified ad, thus when combining all products and services information,
it puts the Company in a better position to carry on providing these service.
In 2008, the Company plans to develop its products and services, especially
online search and exchange of information via internet, call center or mobile phone
in order to respond to varying needs of customers.
In terms of the overall policy, the Company will place a strong emphasis on
developing products and services that can satisfy demands from target customers,
both corporate and individual. Moreover, the Company has realized the importance
of being part of an enduring Thai society. From past to present, not only has the
Company supported various kinds of social activities for the benefit of youths and
several communities throughout Thailand, but also will continue to carry on
activities that are successful and receive cooperation from social parties.
On December 11, 2007, the Board was awarded the “Board of the Year
Award for Exemplary Practice” organized by the Thai Institute of Directors
Association, in cooperation with the Stock Exchange of Thailand (SET), and Board
of Trade of Thailand. This award was for the recognition of the Board of having
responsibility to the shareholders, and monitored the corporate in line with the Good
Corporate Governance Principle. It was of benefits to all shareholders fairly and
equitably. On behalf of the Board, and the Executive Committee, we will strive for
efficient management for the good performance, with maximize and continual profit.
Prof. Wongkulpat Snidvongs na Ayudyha, M.D.
Chairman of the Board
Dr. Dumrong Kasemset
Chairman of the Executive Committee
CS LOXINFO

Message from Managing Director
CS LoxInfo Public Company Limited
and Teleinfo Media Public Company Limited
In 2007, the country’s overall internet business was still growing. For the
internet business of CS LoxInfo Public Company Limited, it was still able to
generate a good profit to shareholders compared to competitors in the market
despite intense competition and Thai economic status which remained weak.
For the YellowPages business, a media inwhich buyers look for sellers,
it had further expanded into two dimensions. The first dimension expanded the
existing target group that covers the purchasing and procurement of both
government and private entities into personal consumptions that are necessary in
daily life whereas the second dimension expanded sub-community areas in order to
better facilitate specific consumptions in each city and each area.
Such expansion spelled out two volumes of City YellowPages (City Pages)
i.e. Nonthaburi and Pathumthani which in turn enlarged the customer base by
approximately 10%. The Company is already set to expand into other provinces e.g.
Phuket, Chiang Mai, Nakhon Ratchasima and Bangkok in the form of Urban Living
YellowPages in the coming year.
Overall, the Company will continue its policy of providing services aimed at
developing products to increase variety and flexibility in order to serve various
customer needs. In the mean time, the Company will still largely give importance to
products and services in the private sector.
Lastly, I and fellow teamwork in the Company are very determined to work
hard to drive our business forward in a secure manner. At the same time, we would
like to create benefit across all stakeholders, including shareholders, employees,
government and Thai society as well as the development of information in Thailand.
We therefore would like to thank all shareholders for your continued trust and
support in the Company’s business.
Mr. Anant Kaewruamvongs
Managing Director
Mr. Somchai Sinjananuruk
Managing Director
Mr. Anant Kaewruamvongs
Managing Director
CS LoxInfo Public Company Limited
Mr. Somchai Sinjananuruk
Managing Director
Teleinfo Media Public Company Limited
CS LOXINFO

Open-up your world the way you want;
Everything is within reach.
10
CS LOXINFO

ADSL
11
CS LOXINFO

Report of the Audit Committee
In year 2007, the Audit Committee (AC)
membership composition was unchanged consisting
of Mr. Prathueng Srirodbang, the Chairman, with
expertise in legal matters, Mr. Gan Hui Beng, and
Dr. Sillapaporn Srijunpetch, the other members of the
AC with expertise in management, finance, accounting,
and auditing, and being in position for four years, four
years, and two years, respectively. All members possess
qualifications as prescribed by the SET, own no
shares in the Company, take no part in business
management, and are not consultants or business
partners of the Company or its related companies, and
have not been appointed to protect the interest of
directors or major shareholders.
In 2007, the AC met six times in meetings
involving top management, internal auditors, and
external auditors to carry out its roles, duties and
responsibilities under the Audit Committee Charter
as well as to address matters specifically assigned by
the Board. The following is a summary of significant
matters addressed during the year.
1. Reviewing for Good Corporate Governance.
The AC monitored to ensure the Company complied
with relevant laws and regulations, like the SET and
SEC regulations and notifications, the rules and
regulations of NTC, as well as the general business
laws. The Committee also reviewed for adequate,
accurate, and timely information disclosure by the
Company, particularly in the areas of connected
transactions, to ensure that they had been entered into
on arm’s length basis under normal commercial terms.
2. Reviewing Quarterly and Year End Financial
Statements. The AC reviewed the financial
statements for compliance with generally accepted
accounting principles, and ensured information
disclosed was clear, adequate, timely and meaningful
for the shareholders and other users of the published
financial statements. To this end, the AC reviewed
the external auditor’s audit work plan, involved the
external auditors in meetings to review the Financial
Statements for material accounts, changes, adjustments,
reserves, provisions and significant information
disclosures. The AC met once with the external
auditor and his audit team without management
presence to affirm the auditor’s independence and to
obtain independent feedback on the audit result and
internal control environment. In year 2007, the
external audit findings did not reveal material
financial reporting issues.
3. Reviewing Company’s Risk Management.
The AC reviewed the quarterly meeting minutes of
the Company’s Risk Management Committee, paying
particular attention to identification of risk factors and
their treatment or mitigation, and provided
constructive suggestions of ways identified risks
could be more effectively managed. It was observed
that the business environment in year 2007 had not
changed dramatically from previous years. The major
risks of the Company resided in the external
operating environment relating to intense price
competition, regulatory rules and conditions
governing business operation, and third party support
to the service infrastructure.
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CS LOXINFO

4. Reviewing Company Internal Control. The
AC reviewed the adequacy of internal control within
the Company on a regular basis from the reports of
both internal and external auditors. The AC would
bring major items of concern to the attention of the
Board together with the remedial action to be taken.
This approach encouraged management of the
Company to ensure adequate and effective internal
control in achieving business focus, operations
efficiency, effective risk management, safeguard of
assets, and people management. Overall, the AC was
of the opinion that the Company had adequate
internal and management control.
5. Overseeing Company Internal Audit Function.
The Office of Internal Audit of the Company reports
directly to the AC on a functional basis. During the
year, the AC reviewed and approved the Internal
Audit annual work plan covering both the Company
and its subsidiaries. In the review, the AC took into
account sufficiency of headcount, effectiveness of the
internal auditing process, and provided constructive
suggestions on improvements.
6. Selection of External Auditors. The AC
monitored the work quality and independence of the
external auditors through the quarterly financial
statements review and in private discussion. The AC
also considered the scope of external audit work and
related audit fee. For year 2007 external audit, the
AC recommended the re-appointment of Pricewaterhouse
Coopers ABAS (PwC) as the external auditors of the
Company for one more year at a fee of Baht 1,660,925
and to comply with SET regulation, another audit
partner of PwC took over as the Company’s statutory
auditor. In line with the Company’s practice of external
auditors rotation, the AC evaluated and finally
recommended KPMG to be the external auditors of
the Company for year 2008.
7. Self-assessment of the AC. The AC
performed an assessment of its actual work covered
in 2007 by reference to the AC charter and known
best practices. The results showed that, on a practical
basis, the scope of work covered by the AC in 2007
was in line with both the AC charter and established
good practices.
In conclusion, in the year 2007, the Audit
Committee reviewed the performance of the Company
and its subsidiaries in the areas of business
operations, corporate governance, financial reporting,
internal control and risk management, with the
management, external auditors, and internal auditors,
to ensure that the business of the Company was
conducted with adequate internal control and risk
management, and the reported financial statements
were accurately prepared using generally accepted
accounting principles.
Mr. Prathueng Srirodbang
Chairman of the Audit Committee
February 19, 2008
13
CS LOXINFO

Director Team
Prof. Wongkulpat Snidvongs na Ayudyha, M.D.
Independent Director and Chairman of the Board
Dr. Dumrong Kasemset
Director and Chairman of the
Executive Committee
Mr. Pratheuang Srirodbang
Independent Director and Chairman
of the Audit Committee
Mr. Gan Hui Beng
Independent Director and Member
of the Audit Committee
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CS LOXINFO

Dr. Sillapaporn Srijunpetch
Independent Director and Member
of the Audit Committee
Mr. Mark Chong Chin Kok
Director and Member of the
Executive Committee
Mr. Viroj Tocharoenvanith
Director
Mr. Yongsit Rojsrivichaikul
Director and Member of the
Executive Committee
Mr. Tanadit Charoenchan
Director and Member of the
Executive Committee
15
CS LOXINFO

Management Team
Mr. Anant Kaewruamvongs
Managing Director
Mr. Anuwat Sanguansappayakorn
Chief Financial Officer
Mrs. Aksara Assavapokee
Senior Director-Finance & Accounting
Mr. Pinyo Po-ngern
Director-Information System
Dr. Somchai Kittichaikoolkit
Director-Marketing
Mr. Pote Punsiripote
Director-Sales
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CS LOXINFO

Mrs. Suwanund Jatesawangsri
Director-Customer Services
Mr. Kiat Intarasuriyawong
Director-Technical & Operations
Mrs. Suwanna Janesawatpong
Director-Internal Audit
Teleinfo Media Public Company Limited
Mr. Somchai Sinjananuruk
Managing Director
Mr. Surachart Kukasamerat
Deputy Managing Director-Sales
17
CS LOXINFO

Feel closer together,
no matter the distance.
18
CS LOXINFO

IPSTAR
19
CS LOXINFO

Corporate Governance
The Board of Directors of the Company (Board) equates good corporate
governance with good corporate citizenship, and has over the years sought to
improve and strengthen corporate governance practices within the Company. As a
fitting reward of this focus and effort, on December 11, 2007, the Board was a
recipient of the “Board of the Year for Exemplary Practices” award in an event
organized by the Thai Institute of Directors Association (IOD), in cooperation with
the Stock Exchange of Thailand (SET), Board of Trade of Thailand, Federation of
Thai Industries, Thai Bankers’ Association, Thai Listed Companies Association, and
Federation of Thai Capital Market Organizations. This award was a recognition of
boards that have performed their duties in accordance with good corporate
governance (CG) principles, as well as attained an evaluation score of not less
than 85% according to the criteria set by the Award Committee. The awards
selection criteria were based on the OECD Principles of Good CG and the SET
Guidelines for Board of Directors.
Corporate Governance Policy
The Company that leadership of a visionary and responsible Board of Directors, with accountability to
stakeholders, that can motivate and guide management, using a sound management system that utilizes internal
control to balance business priorities and operations transparency, while respecting the rights and equitable
treatment of all shareholders, are the essential factors in maximizing long term shareholders value. To this end,
the Board has established a good Corporate Governance Policy that addresses five key areas:-
1. Board’s structure, composition, roles and responsibilities
2. The rights and equitable treatment of Shareholders and the Roles of Stakeholders
3. Information Disclosure and Transparency
4. Internal Control and Risk Management
5. Code of Conduct
Since 2005, the Board has acknowledged the growing importance of Corporate Governance (CG) as
representing a set of processes, policies, laws and institutions affecting the way in which a corporation is
directed, administered or controlled. As a result, on an annual basis, the Board schedules a meeting in the early
part of the year dedicated to the review and enhancement of the CG of the Company to ensure its relevance,
compliance with SET mandates and guidelines, and adherence to good practices. In the Board of Directors
Meeting No.3/2008, on March 19, 2008, CG Policy of the Company was reviewed. Moreover, to strengthen
its focus on CG, the Board plans to set up a CG Committee.
20
CS LOXINFO

Chapter 1: Board of Directors
1. Leadership and Vision
The Board determined CS LoxInfo Public Company Limited (CSL), a company in Shin Corporation
Group of companies, to be a leading Thai company, with successful, internationally acknowledged and
implemented perspectives, whilst having a variety of businesses with state of the art technology, strong
management and capable staff.
The Board members have leadership, vision and independence in making decisions, and are responsible in
governing the corporation and providing the greatest benefit to its stakeholders. As such, the duties, roles and
responsibilities of the Chairman of the Board, the Chairman of the Executive Committee and the Managing
Directors are clearly segregated.
In determining the business direction, vision, mission and annual targets, the Board oversees overall
business affairs of CSL Group, and makes approval of those above with the involving initiation of the
management. After that, the Board will monitor the achievement of the approved direction and plans through
the Executive Committee, on a regular basis.
For 2008 the Board agreed to continue focusing on increasing benefits to its shareholders by targeting to
corporate customers, which is the segment of our expertise and effective in generating both revenue and profit.
By the way, we will also develop more of the content servicing to fulfill more of the customer needs. This
should enable the synergy at the Group level to cover both consumer and corporate sectors with the concept of
Localized Search and Transactions via various types of connection medium, ie., internet, mobile phone, or even
the call center.
2. Composition of the Board of Directors, the Appointment, and its Independence
The Board consists of nine qualified and experienced directors in various fields, i.e., telecommunication,
legal, accounting and finance. Four are representatives of two major shareholders; one is the representative for
CAT Telecom Plc. serving on behalf of the concession grantor; four are independent directors, including the
Chairman of the Board, who account for more than one third of the Board. The full Board is as follows:-
Name
1. Prof. Wongkulpat Snidvongs
na Ayudyha, M.D.*
2. Mr. Prathueng Srirodbang
3. Mr. Gan Hui Beng
4. Dr. Sillapaporn Srijunpetch
5. Mr. Viroj Tocharoenvanith
Position
Independent Director / Chairman of the Board
Independent Director / Chairman of the Audit Committee
/ Chairman of the Nomination Committee
Independent Director / Member of the Audit Committee
/ Member of Remuneration Committee
Independent Director / Member of the Audit Committee
Director / Representative of CAT Telecom
Numbers of Shares
holding
(as at Dec 31, 2007)
-0-
-0-
-0-
-0-
-0-
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CS LOXINFO

Name
6. Mr. Mark Chong Chin Kok
7. Dr. Dumrong Kasemset
8. Mr. Yongsit Rojsrivichaikul
9. Mr. Tanadit Charoenchan
Position
Director / Member of the Executive Committee /
Member of the Remuneration Committee /
Member of the Nomination Committee /
Representative of major shareholder
Director / Chairman of the Executive Committee /
Chairman of the Compensation Committee /
Member of the Nomination Committee /
Representative of major shareholder
Director / Member of the Executive Committee /
Representative of major shareholder,
Director / Member of the Executive Committee /
Representative of major shareholder
Numbers of Shares
holding
(as at Dec 31, 2007)
-0-
-0-
-0-
-0-
* Being appointed by the AGM No.1/2007 on April 23, 2007 as the Director and Chairman of the Board
• During 2007, Mr. Vasant Chatikavanij resigned from his directorship which were a Director, a Member of the Executive Committee and a Member of
the Remuneration Committee with effective date of December 26, 2007.
Secretary to the Board: Mr.Kamonmit Vudhijumnonk (Details of his profile and qualifications are
shown on page 44)
The Authorized Directors: Dr. Dumrong Kasemset or Mr. Yongsit Rojsrivichaikul or Mr. Tanadit
Charoenchan cosigns with Mr. Viroj Tocharoenvanith or Mr. Mark Chong Chin Kok, altogether
two directors, together with Company seal.
Directors Nomination and Appointment Process
The Company has appointed the Nomination Committee (NC) to consider setting standards and policies
in nominating a qualified director under the Company’s Articles of Association and relevant laws, as well as to
nominate such a qualified person to be a director of the Company where the office is vacant. The NC considers
the educational background and professional experiences of the candidates. It provides sufficient useful
information, for the consideration or decision making of the Board and the shareholders.
Moreover, it was determined that in every Annual General Shareholders Meeting, one third of the
directors shall resign from the position. In case that the number of the directors cannot be divided into three,
the closest to one third of the directors shall resign from their positions. In the first and second year after the
Company was listed on the Stock Exchange of Thailand, the directors who were required to resign, applied the
method of drawing lots to determine who should resign. On subsequent years, the longest serving directors
would resign and might be re-elected to resume their positions.
In case the office of Director is vacant, due to reasons other than by the rotational scheme, the Board
shall elect a person who is qualified and has no prohibited characteristics in accordance with Clause 68 of the
Public Company Act, B.E. 2535. The successful candidate would replace the Director at the next meeting.
Unless the remaining tenure of the Director vacating office is less than two months, a director who has elected
as a replacement shall retain this position only up to the remaining tenure of such preceding director.
As stipulated in the Company’s Articles of Association, the shareholders meeting shall elect directors
under the following rules and procedures.
1. All shareholders have votes equivalent to the number of shares being held.
2. Each shareholder may use all votes set forth in (1) to elect one or more directors. In case of electing
a number of directors, those votes may not be divided in any proportion for any particular director.
3. Those who receive the highest respective votes shall be elected as directors in a number equal to those
to be elected at such a meeting. In cases of tied votes cast, which would result in the number of
directors greater than that permitted for the time being, the presiding chairman shall have a casting vote.
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CS LOXINFO

The Company has not determined the maximum number of occasions a director can be re-elected, or his/
her age, but will take into consideration his/her time, capability and knowledge devoted to the Company in
performing duties. Except an independent director, he/she shall not serve the directorship for more than three
consecutive terms or a total of nine years.
Qualifications of the Board of Directors
Directors of the Company have qualifications and characteristics as specified in the relevant laws. They
have knowledge, capability and ethics in carrying out business and sufficient time to devote their knowledge and
capabilities in performing duties for the Company. It is acceptable for them to be directors in other companies
as long as such directorship does not hamper their performance in carrying out duties at the Company.
The Company also encourages the directors to attend training classes for roles and responsibilities of
being a director, e.g., DAP, DCP, etc. in order to have a thorough understanding of their roles. The profile of
the Company and its subsidiaries, relevant rules and regulations, and the Director’s Handbook, are normally
provided to the Directors, especially for new appointtees. Business environment updates of the Company and its
subsidiaries, e.g., market situation, technology, laws and regulations, etc. are also made to the Board regularly.
This should enable the Board to have sufficient information, knowledge and understanding about the business
of the Company, as well as the most current roles and responsibilities of being a director. To date, all of our
directors, including the Managing Director have already attended the DAP or DCP course. We also encourage
the Directors to have continuing education programs, to enable them to perform their duties effectively,
including corporate governance matters.
Independence and Definition of the Independent Directors
We define “Independent Director” in the Company’s CG policy as a director, who is fully qualified with
regards to independence, in accordance with the SET’s guidelines. He/She shall be able to equitably safeguard
the interests of shareholders and prevent a conflict of interest. He/She shall also be able to give independent
opinions in the Board Meetings. Details of his/her qualifications are as follow:-
1. Being a director who holds shares of not more than 0.5% of paid-up capital of the Company, affiliated
company(s), associated company(s) or related company(s). Shares held by his/her relation(s) shall be
included.
2. Being a director who does not take part in the management of the Company, affiliated company(s),
associated company(s), and related company or is a majority shareholder(s) of the Company, and is
not an employee, staff member, or advisor who receives a regular salary from the Company, affiliated
company(s), associated company(s), related company(s), or is a majority shareholder of the Company.
3. Being a director who has no benefits or interests, directly or indirectly, in terms of financial and
management of the Company, affiliated company(s), associated company(s), or majority shareholder(s)
of the Company, and shall have no benefits or interests in such manner for a period of one year prior
to the appointment as a director, except the Board has carefully considered and opined that such
benefits or interests should have no impact on performing directorship duties and giving independent opinion.
4. Being a director who is not a related person or close relative of any management member or majority
shareholder(s) of the Company.
5. Being a director who is not being appointed as a representative to safeguard the interests of the
Company’s Directors, majority shareholder(s) or shareholders who relate to majority shareholder(s) of
the Company.
6. Being a director who is able to perform duties, give opinions or report on the result of the assignments
made by the Board with no pressures due to circumstances or controls of the management, majority
shareholder(s) of the Company, including their related persons or close relatives.
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CS LOXINFO

3. Chairman of the Board and Chairman of the Executive Committee
The Company has a policy that the Chairman of the Board and the Chairman of the Executive Committee
should be capable and possess appropriate experience and qualifications. They shall not be the same person, in
order to balance the power between direction and management functions. The responsibilities of the Chairman
of the Board and the Chairman of the Executive Committee are specified as follows:-
• Chairman of the Board is a non-executive Director, has responsibility as the leader of the Directors, in
directing and monitoring the performance of the Executive Committee in achieving its goals and
objectives. He also chairs the Board meeting and the Shareholders meeting. Currently, our Chairman of
the Board is the independent director.
• Chairman of the Executive Committee takes responsibility as the leader of the executives of the Company,
responsible to the Board for supervising the management of the Company to achieve planned assignment.
4. Authorities, Scope of Duties, and Responsibilities of the Board
The major authorities, duties, and responsibilities of the Board are as follows:-
• To carry out duties in accordance with the laws, the objectives, the Articles of Association of the
Company, and the resolutions of the shareholders’ meeting in good faith and with care to preserve
the interests of the Company.
• To determine vision, policy, and direction of the Company, as well as to oversee and superintend the
executive to be in line with the policy effectively and efficiently for maximizing corporate value and
shareholders’ wealth.
• To consider to approve or propose to shareholder to approve where the case may be, the major
transactions about business operations of the Company and its subsidiaries, such as new investment,
asset acquisition or disposition, and other transactions specified by the law.
• To approve or agree to the related transactions between the Company and its subsidiaries in
compliance with the relevant notifications, regulations and guideline of the Stock Exchange of Thailand.
• To arrange to have a reliable accounting system, financial reports, auditing, as well as oversee the
evaluation process for an appropriate, effective, and efficient internal control, internal auditing, risk
management, financial reporting, and monitoring.
• To oversee for not having a case of conflict of interests between the concerned persons of the
Company, as well as to approve the Connected transactions and Conflicting transactions.
• To govern the Company to carry out the business ethically and in line with the principle of good
Corporate Governance.
• To review the Company’s CG Policy and assess due compliance at least annually.
• To conduct Board appraisal, as a group, annually.
• To appoint or delegate any power to any other persons to conduct the Company’s business subject to
the control of and within the time as may be specified by the Board, whereby such appointment or
delegation of power may, at anytime, be canceled, revoked, withdrawn or amended. Provided that the
said appointment or delegation of power shall not be made in the manner that the Board or the
person appointed or delegated then be able to approve any transaction to be entered into between the
Board, the person appointed or delegated by the Board, or any person who may have conflicts of
interest or any other benefits (as stipulated by the Office of the Securities and Exchange Commission)
and the Company or the Company’s subsidiaries, unless the approval for such transactions is in
compliance with the policy and rules already approved by the Board.
• To determine each director and executive to have duty in preparing and submitting the Report of
Securities Holding in the Company by himself (herself), his(her) spouse, his(her) immature children,
to the SEC, by using the 59-1 and 59-2 form, and by the timeframe stipulated in the Notification of
the SEC no. Sor Jor 14/2540.
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5. The Sub-Committees
The Board has appointed four sub-committees to study and pre-review the matters under the Board’s
responsibilities.
5.1 Audit Committee
5.2 Remuneration Committee
5.3 Nomination Committee
5.4 Executive Committee
5.1 Audit Committee (AC)
No. of Meeting Attendance /
Name
Position
No. of Meetings in 2007
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
6/6
6/6
6/6
The AC consists of three independent directors. Two are financial and accounting experts Mr. Gan Hui
Beng and Dr. Sillapaporn Srijunpetch, and one is a legal expert Mr. Prathueng Srirodbang. Every member has
qualifications as specified under the guideline of the SET and meets the requirements of an independent
director as defined in the Company’s CG policy.
The AC has a three year term, the same as the directorship position. Those, who complete the term of the
AC membership can be re-elected for no more than nine years or three consecutive terms. The authorized
duties of the AC are as specified in the Charter of the AC. The AC also reviews the Charter for
appropriateness on a yearly basis, and makes further proposals for approval by the Board. The details of the
latest version of the AC Charter are as follows:-
• To carry out a review of the Company’s financial statements with the management and external auditors
to ensure that the statements accurately present the financial position of the Company and that they are
prepared in accordance with generally accepted accounting principles.
• To give recommendations to the Board about the changes to the Company’s accounting policies and
financial authorities, delegated to EXCOM and the Managing Director.
• To ensure that the company has appropriate and efficient internal control and audit systems.
• To carry out a review to ensure that the Company operates in compliance with the Securities and
Exchange Acts, the regulations of the Stock Exchange of Thailand and any other relevant laws.
• To consider, select ,and propose the appointment and audit fees of the company’s external auditor to the
Board, as well as approve its audit plan and meet privately with the external auditor at least once a year.
• To review policies for the approval of non-audit services and make recommendations.
• To review the work of the Risk Management Committee of the Company.
• To review and provide opinions on material connected transactions for compliance and conflict-of-
interests, as well as accurate and complete disclosure.
• To review and give opinions on the performance of the Internal Audit Office and coordinate work with
the Company’s external auditors.
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• To ensure all necessary assistance and cooperation required by the external and internal auditors are
provided by the management.
• To prepare an annual AC activities report which must be signed by the Chairman of the AC and
disclosed in the Company’s annual report.
• To consider ant appraise annually, the performance of the Assistant Director of Internal Audit.
• To consider and approve the Internal Audit Charter, annual internal audit plan, budget and manpower
of the Internal Audit Office and the adequacy of the internal audit function.
• To report the AC activities to the Board at least once during each quarter.
• To review the scope of duties, responsibilities and to conduct AC performance self-assessment
on a yearly basis.
• To have full access and the cooperation of management.
• To have the power to invite members of the management, officers and employees of the Company or
external parties, to give statements, to attend a meeting and to deliver necessary documents.
• To have direct access to the external auditors in the investigation of any matter within its terms of reference.
• To have the power to engage consultant(s) or independent person(s) to provide opinions or advice if
necessary, in accordance with the Company’s regulations, and expenses (with no budget provided)
under the approval of authority given by the Managing Director.
• To carry out other works designated by the Board of Directors and agreed to by the AC.
The AC has conducted a self-assessment for 2007, by team, to review the actual performance against the
Charter of the AC and Best Practice. The results were reported to the Board during Board Meeting No. 3/2008
on March 19, 2008. The results showed that both the Charter of the AC and Best Practice was conformed to.
5.2 Remuneration Committee (RC)
No. of Meeting Attendance /
Name
Position
No. of Meetings in 2007
1. Dr. Dumrong Kasemset Chairman of the RC
2/2
2. Mr. Gan Hui Beng Member of the RC /
2/2
Independent Director
3. Mr. Mark Chong Chin Kok Member of the RC
0/2
• Mr. Vasant Chatikavanij resigned from the Member of the RC with effective date of December 26, 2007.
The RC consists of three directors. Two are representatives of the major shareholders, and one is an
independent director. The scope of duties and responsibilities are as follows:-
• To appropriately determine necessary remuneration, both monetary and non-monetary, annually in
order to provide necessary incentives and retain the Board, Sub-Committees and senior executives of
the Company.
• To prepare policies and criterias to determine remuneration of the Board and senior executives, for
approval by the Shareholders Meeting, and/or the Board, depending on each case.
• Report to the Board, and be responsible for providing explanations and clarifications about
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emuneration of the Board and senior executives in Shareholders Meetings.
• To report on the remuneration policies, rationale and objectives, as well as to make disclosures in the
annual report.
• Others, as assigned by the Board.
In 2007, the RC met twice to consider and approve the allocation of warrants under ESOP Grant V
program to the directors and staff, as well as approve the remunerations for independent directors and external
directors.
5.3 Nomination Committee (NC)
Name
1. Mr. Prathueng Srirodbang
2. Dr. Dumrong Kasemset
3. Mr. Mark Chong Chin Kok
Position
Chairman of the NC /
Independent Director
Member of the NC
Member of the NC
No. of Meeting Attendance /
No. of Meetings in 2007
3/3
3/3
1/3
The NC consists of three directors. Two are representatives of major shareholders and one is an
independent director acting as the Chairman of the Committee. The scope of duties and responsibilities are as
follows:-
• To determine policies and criteria for nominating the Board and Sub-Committees of the Company.
• To nominate directors by considering suitable candidates for approval by the Board, and/or the
Shareholders Meeting, depending on each case.
• To consider suitable candidates to be nominated as Chairman of the EXCOM, if there is vacancy, as
well as to determine criteria for succeeding the senior executives.
• Others, as assigned by the Board.
In 2007, the NC met three times to consider appointing directors and determining their authority for the
replacement of retired directors, in accordance with the company’s Articles of Association.
5.4 Executive Committee (EXCOM)
Name
Position
1. Dr. Dumrong Kasemset Chairman of the EXCOM
2. Mr. Mark Chong Chin Kok Member of the EXCOM
3. Mr. Tanadit Charoenchan Member of the EXCOM
4. Mr. Yongsit Rojsrivichaikul Member of the EXCOM
No. of Meeting Attendance /
No. of Meetings in 2007
13/13
7/13
10/11
10/12
• Mr. Vasant Chatikavanij resigned from the Member of the EXCOM with effective date of December 26, 2007.
The EXCOM consists of the directors of the Company and Executive Chairman of Satellite and
International Business Line as the Chairman of the EXCOM. The scope of duties and responsibilities are as
follow:-
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• To determine the policies, directions, strategies and core management structure for business operations
in line with economic and competitive conditions that have been defined and declared to Shareholders,
for approval by the Board.
• To determine the business plans, budgets, and working authority limits of the Company for approval by
the Board.
• To monitor efficient policy implementation and operating procedures according to favorable business
conditions.
• To monitor the Company’s operating performance to be in line with the approved business plan.
• To consider any material investment projects.
• To report the Company’s performance to the Board on the monthly basis.
• Having authority to approve financial transactions of not higher than 400 million baht. In case of the
finance banking transactions, for example, deposit, lending, hedging instrument on foreign exchange
and interest rate, the transaction value and details requires the Board’s approval. The EXCOM may
delegate an executive or individual to carry out or acknowledge a business according to the discretion
of the EXCOM.
• The approval of the EXCOM or the delegates shall not be for the connected transaction(s) or where
the Committee may have a conflict of interest according to the Articles of Association of the Company
or that defined by the regulatory body (ies).
• Others, as assigned by the Board.
Management Team
As of December 31, 2007 the Company’s Management is composed of the following people:-
Name
Position
1. Dr. Dumrong Kasemset Chairman of the EXCOM
2. Mr. Anant Kaewruamvongs Managing Director
3. Mr. Anuwat Sanguansappayakorn Chief Financial Officer
4. Mrs. Aksara Assavapokee Senior Director - Finance & Accounting
5. Mr. Pinyo Po-ngern Director - Information System
6. Dr. Somchai Kittichaikoolkit Director - Marketing
7. Mr. Pote Punsiripote Director - Sales
8. Mrs. Suwanund Jatesawangsri Director - Customer Services
9. Mr. Kiat Intarasuriyawong Director - Technical & Operations
10. Mrs. Suwanna Janesawatpong Director - Office of Internal Audit
Scope of Authorities and Responsibilities of the Managing Director
The Managing Director (MD) has authority according to that being delegated by the Board, which is in
compliance with the rules, regulations, and Articles of Association of the Company. The MD did not conduct
or enter into transaction that he or conflicting person may have conflict of interests with the Company or the
subsidiaries, as defined by the Notifications of the SEC. Exemption is on the case of related transactions where
no approval is required from a shareholders’ meeting, as announced by the SET regarding the Principle,
Procedure, and Disclosure of Related Transactions of the listed companies, and the approval of internal
management of the Company and its subsidiaries.
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Approval authority of the MD
The MD has been delegated of the financial authority from the Board at the maximum of 10 million baht
for budgeted capital expenditure.
6. The Meeting of the Board of Directors
The Board has policy to schedule the Board’s meetings of at least six times a year. The meetings are normally
pre-scheduled for the entire year. Special meeting can be held where necessary. In organizing a meeting, the
Chairman of the Board and Chairman of the EXCOM will agree to with the agenda items. Secretary to the
Board will coordinate with the relevant parties and distribute the notice to the meeting along with the meeting
agendas and meeting document to the directors at not less than seven days in prior to the meeting date for the
Board to have sufficient time to digest the information. In year 2007, the Board met for nine times.
Normally, each meeting would take about two to three hours, with the Chairman of the Board chairing
the meeting. He is responsible for overseeing the meeting process and managing time for each agenda to be
sufficient for the directors to discuss and express their opinions independently, taking into consideration the
benefit of the shareholders and stakeholders on a fair basis. Management will provide sufficient information for
the Board consideration. Where a director may have conflict of interest with any meeting agenda, he/she will
not be present in the meeting for that agenda item.
After that, the Secretary to the Board will finish preparing the minutes of the meeting by 14 days, keep
such the minutes and supplemented documents, as well as support and follow up matters for facilitating the
Board to perform duties in compliance with applicable laws, rules and regulations, and shareholders’ meeting
resolutions.
In 2007, in summary, there were below meetings.
Meeting
Director
EXCOM
AGM BDM ACM NCM RCM
Meeting
1. Prof. Wongkulpat Snidvongs
na Ayudyha, M.D.*
2. Dr. Dumrong Kasemset
3. Mr. Prathueng Srirodbang
4. Mr. Gan Hui Beng
5. Dr. Sillapaporn Srijunpetch
6. Mr. Viroj Tocharoenvanith
7. Mr. Mark Chong Chin Kok
8. Mr. Yongsit Rojsrivichaikul
9. Mr. Tanadit Charoenchan
-
1/1
1/1
1/1
1/1
1/1
1/1
1/1
1/1
No. of Meeting Attendance / No. of Meeting in 2007
5/5
9/9
9/9
8/9
9/9
8/9
6/9
6/6
6/7
-
-
6/6
6/6
6/6
-
-
-
-
-
3/3
3/3
-
-
-
1/3
-
-
* Being appointed by the AGM No. 1/2007 on April 23, 2007 as the Director and Chairman of the Board.
• Mr. Vasant Chatikavanij resigned from the directorship with effective date of December 26, 2007.
-
2/2
-
2/2
-
-
0/2
-
-
-
13/13
-
-
-
-
7/13
10/11
10/12
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7. Directors and Managements Remuneration
On every February, the RC considers, analyzes, and recommends remuneration of the directors to the
Board for further recommending to the shareholders for approval. The RC also approves the remuneration
calculation scheme of the management. The remuneration of the directors and the management shall get along
well with their duties and responsibilities, be comparable to the industry standard, and attractive enough to
retain the qualified directors and management.
The Company has policy to remunerate only to the independent directors and external directors. The
executive directors do not receive remuneration as a director.
The remuneration for each management will link with the operating performance of the Company and
his/her working performance. The warrants for purchasing the Company’s common shares are also offered to
the management and employees under the Employee Stock Option Program (ESOP) to attract and retain them
with the Company.
In year 2007, the Company paid following remuneration.
1. Monetary Remuneration for the Board
• Total monetary remuneration for the Board, only independent directors or non-executive directors,
for the period as at December 31, 2007 comprised of director monthly compensation, annual
remuneration and meeting fees totaling Baht 3,707,696 for five directors. The details of which are as
follow:- (Executive directors did not receive remuneration as directors.)
Name
1. Prof. Wongkulpat Snidvongs
na Ayudyha, M.D.
2. Mr. Prathueng Srirodbang
3. Mr. Gan Hui Beng
4. Dr. Sillapaporn Srijunpetch
5. Mr. Viroj Tocharoenvanith
Position
Independent Director and Chairman of the Board
Independent Director and Chairman of the AC
Independent Director and Member of the AC
Independent Director and Member of the AC
Director and representative of CAT Telecom Plc.
Remuneration
for 2007*
(Million Baht)
1.037
0.820
0.675
0.675
0.500
* Director monthly compensation and meeting fees for the period of January to December 2007, and accrued annual remuneration which
would be paid in February 2008.
2. Monetary Remuneration for the Executives
• Total monetary remuneration for the Executives, for the period ended December 31, 2007 comprised
of salary, bonus, provident fund, and other fringe benefits was Baht 20,821,950 (excluded the
Executive Chairman who receives remuneration from Shin Satellite Plc., the indirect shareholder of
the Company).
3. Other Remunerations
3.1 Other Remuneration for the Board members
Apart from the monetary remuneration for the independent directors and external directors, the
Company provided non-monetary remuneration to the Chairman of the Board, who is an
independent director, in form of fringe benefit of car and fuel.
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3.2 Employee Stock Option Program (ESOP)
The Company plans to issue and offer warrants to purchase the Company’s ordinary shares to the
directors and employees to motivate and reward their past performances which should thereby
benefit the Company in the long run. Under a continuous program, the Company will issue and
offer such warrants continually for five-year period subject to shareholders’ approval in each year. At
the end of 2007, the Company has issued and offered five programs. The details of which are as follow:-
Descriptions Program 1 Program 2 Program 3 Program 4 Program 5
Offering Size
Offering Price
Warrant Term
Exercise Ratio*
Exercise Price*
(Baht per share)
Issuance and Subscription Date
The director and
management of
the Company and its
subsidiaries receiving of
the warrants
1. Mr. Anant Kaewruamvongs
2. Dr. Somchai Kittichaikoolkit
3,096,300 2,213,700 ** 8,559,100 8,354,300 8,354,400
Bt 0
Not more than 5 years from the Issuance and Subscription Date
1 unit of warrant per 1.24101 1 unit of warrant
per 1.21856
1 unit of warrant
per 1.4758
1 unit of warrant
per 1
7.252 7.487 5.686 3.120 3.580
14-May-04 16-May-05 31-May-05 31-May-06 30-May-07
Descriptions Program 1 Program 2 Program 3 Program 4 Program 5
No. of % of No.
Warrant of
allocated Warrant
(Units) issued
1,000,000
550,000
3. Mr. Anuwat Sanguansappayakorn -
4. Mrs. Aksara Assavapokee 174,200
5. Mr. Somchai Sinjananurux -
6. Mr. Surachart Kukasamerat -
7. Mr. Charles Han
-
8. Mr. Pote Punsiripote
-
32.30
17.76
-
5.63
-
-
-
-
No. of
Warrant
allocated
(Units)
704,600
202,000
162,200
426,400
-
-
-
-
% of No.
of
Warrant
issued
24.4
7
5.62
14.78
-
-
-
-
No. of % of No.
Warrant of
allocated Warrant
(Units) issued
966,400
250,000
350,000
572,700
771,700
753,300
-
-
No. of % of No.
Warrant of
allocated Warrant
(Units) issued
No. of % of No.
Warrant of
allocated Warrant
(Units) issued
* The Company has adjusted the warrant right, as a result of 2006 dividend payment at a rate of more than 50% of net income after corporate income tax
under the conditions specified in the prospectus. The latest right adjustment on both the exercise ratio and exercise price was on March 28, 2007.
** At Extraordinary General Shareholders Meeting No. 2/2004, held on June 14, 2004, the shareholders approved the issuing and offering of 2,885,900
units of warrants for ESOP Grant 2. However, the Company could only allocate 2,213,700 units and the remaining warrants expired without being
allocated to other programs.
11.29
2.92
4.09
6.69
9.02
8.80
-
-
1,002,500
417,700
417,700
501,300
835,400
853,400
459,500
-
12
5
5
6
10
10
5.5
-
2,690,100
540,000
917,400
1,186,500
-
-
-
715,900
32.20
6.46
10.98
14.20
-
-
-
8.57
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8. Succession Plan
CG policy of the Company specified that there should be a succession plan for the position of Chairman
of the EXCOM and senior management to build up a confidence among shareholders and staff that the
operations of the Company will not be interrupted. The NC was assigned in determining the criteria and the
succession plan.
9. The Meeting of Non-executive Directors (NED)
CG policy of the Company also specified that there should be the meeting of the NED without the
presence of executive directors from time to time as appropriate, in order to be an opportunity for the NED to
discuss any subjects of interest related to the business operations of the Company. The conclusions made at
each meeting shall also be reported to the Board and the Chief Executive Officer.
On Nov 14, 2007, the NED, consisted of 4 independent directors and 1 external director met as the first
NED meeting of the Company. The Chairman of the Board presided over the meeting. The major matters
agreed and presented to the Board Meeting No. 9/2007 on November 14, 2007 were the plan that the
Company may establish a CG Committee, and the importance of having a continuous adequate level of internal
control system and internal auditing under the concept of COSO standard. COSO stands for The Committee of
Sponsoring Organizations of the Treadway Commission, the US commission concerning the studying and
analysis of fraudulent financial reportings and developing recommendations for public companies and their
independent auditors, for the US SEC and other regulators, and for educational institutions.
10. The Performance Assessment of the Board of Directors
In the Board Meeting No. 3/2008 on March 19, 2008 the Board has conducted self-assessment for the
year 2007 as a group, to assess the effectiveness and efficiency of the Board performance. In overall, the Board
was satisfied with the aggregated diversified knowledge and experiences of the Board members, as well as the
openness and teamwork environment of the Board. However, Board members also recommended more
information to be provided in prior to the meeting, e.g., background information about business plan, working
reports from the sub-committees, etc.
Chapter 2: Shareholders’ Rights and Equitable Treatment and Roles of the Stakeholders
1. Shareholders’ Rights and equitable treatment
The Board respects the shareholders rights and has duty in protection of the benefit of every shareholder
equitably, in regardless of type of shareholders, i.e., retail, foreign, institutional, or wholesale investor. Every
shareholder shall have below rights and equitability.
• Right in receiving shares certificate, shares transferring, acknowledging the information about operating
performance and business policy, regularly and timely.
• Right in receiving profit sharing, equitably.
• Right in attending the shareholders meeting, expressing opinion, giving recommendation, and being
involved in decision making in significant changes.
• Right in appointing the directors.
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2. Shareholders’ Meeting
The Company has policy to conduct the shareholders’ meeting to be in compliance with the law, the
Articles of Association and the guideline stipulated by the regulatory bodies. In year 2007, there was one
shareholders’ meetings, an Annual General Meeting (AGM). We regard the convenience of the shareholders in
attending the meeting as the major factor in organizing each meeting. We used the Auditorium, at 9 th Floor of
Shinawatra Tower III on Vibhavadi Rangsit Road, Bangkok, which can serve up to 300 attendees.
In the Shareholders’ meeting, every shareholder has rights and equitable treatment in acknowledging
information by receiving of the notice to the meeting and meeting document by 14 days in prior to the
meeting. The document normally contains necessary information, opinion of the Board, background or rationale
information for each agenda which deem useful for the consideration of the shareholders.
In the notice to the meeting, we always notify the document requiring for meeting registration, as well as
proxy form and instruction together with name list and profile of at least one independent director to be the
agent for the shareholders who cannot attend the meeting. All such the notice and meeting document will
always be published in the Company’s website for not less than 14 days, and in newspaper for 3 consecutive
days in prior to the meeting. The minutes of the meeting shall also be published in the website for the
shareholders’ access by 14 days after the meeting date.
In meeting registration, we use the advanced and reliable registration system to facilitate the shareholders
and quick votes counting. The registration process will also be prepared to be ready at least two hours before
beginning of the meeting.
In 2007 AGM, the Chairman of the Board and the directors have attended the meetings, with the details
on page 29, to answer inquiries might arise. Before beginning of the meeting, the Chairman of the Meetings
explained the voting method for common understanding of the shareholders. The voting results were recorded
in the registration system. We also followed the Article of Associations of the Company by using one share
one vote basis for all agendas. When the Chairman conducted the meetings by agenda, he encouraged the
shareholders to express opinion and inquire the meeting with sufficient timeframe. When there was no more
query in an agenda, the voting results, which the shareholders had voted during the registration process, would
be announced. There was also no case that various unrelated matters were gathered for approval in one agenda item.
3. Role of the Stakeholders
The Company is aware of the rights of stakeholders and has policy to ensure the importance of the rights
by the appropriate prioritization of all stakeholders, which are shareholders, employees, executives, customers,
partners, creditors, society, and the public. Cooperation between stakeholders shall be made according to their
roles and responsibilities so that the Company can run smoothly and strongly to fairly benefit all groups of
stakeholders as follow:-
Shareholders : We strive to be a good representative of shareholders in carrying out business to
maximize shareholders satisfaction with regards to the sustainable growth of the value
of the Company in the long run, good and continual return, and the transparent and
reliable information disclosure to the shareholders.
Employees : We concentrate on the employees, the most valuable resource and the critical factor
to the corporate success. Therefore, we attempt developing them for their continual
growth, for building up skills, knowledge, and corporate culture, for their own benefit
in a good working environment. We provide them the trainings both by their own
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Customers
Partners
Creditors
interest for their professional development (Individual Development Plan), and by the value
that we would like to cultivate them.
We pay attention to the staff employment, appointment, transfer, on ethical basis. We
stand on the compliance with the labor law or higher standard. We are also
responsible to make a safety working environment.
: We strive to make our customers confident and satisfy with the top quality services
with continual improvement at appropriate charges. We provide them the undistorted
service information, keep good relationship, and do not disclose their information
without prior permission except for the information shall be disclosed to the public by law.
: We are aware of the importance of partners and regard them as a critical factor in
mutual building up of value to the customers. Therefore, we make relationship with
groups of partner equitably for mutual business interest with no breaching of
reputation, or law.
: We pay attention to the importance of the creditors and strive to keep good
relationship with them on the best interest of the Company. We also hold to the
contract conditions committed with the creditors.
Competitors : We are aware of the benefits from competition toward business management and
continual service quality improvement for the good sake of customers. Therefore, we
have policy to support and promote for the free and fair trade, and have no policy to
compete by means of having their information illegally and immorally.
Society
: We, a Thai company, are aware of and realize in the country, public, and society that
we should also be responsible and support for the activities, especially, to the
children and people in remote area. These days, they need to access to technology
more than in the past. So, we try to provide knowledge along with technology by
avoiding the information may be harmful to the society.
Chapter
3: Information Disclosure and Transparency
The Company values the transparency and sufficient information disclosure by determines as a role and
responsibility of the Board in disclosing accurate, complete, thorough, and timely financial, operational, and
other relevant information for the shareholders and stakeholders to have equal information. The disclosure shall
be made through the communication channels of the SET, SEC, and Company website at www.csloxinfo.com
and the Group website at www.shincorp.com
Investor Relations
We have established the Investor Relations Unit as the representative in communicating useful news and
information to the shareholders, investors, securities analysts, and other relevant parties. In 2007, we met
institutional investors and retail investors for 11 times to promote good understanding to the current situation
and the transparency of the disclosed information, as well as to allow them inquire the matters may be
questionable. The interested person can contact for more information at Tel. 0 2263 8000 ext 5184, or at email
address: ir@csloxinfo.net.
Apart from the disclosure responsibility on financial information and quarterly and yearly operating
performance, which is required by laws, we also arrange press conference immediately on the next working day
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after we disclose the above mentioned information to the SET. This is for the information to reach investors,
interested people, and the public timely and thoroughly.
Moreover, we arranged additional briefing of quarterly and yearly operating performance to the investors,
analysts, and interested people as below details:-
• 1Q2007 Quarterly Briefing on May 16, 2007
• 2Q2007 Quarterly Briefing on August 16, 2007
• 3Q2007 Quarterly Briefing on November 19, 2007
• 2007 Annual Briefing on February 26, 2008
Chapter 4: Internal Control and Risk Management
1. Internal Control
The Board is responsible for the Company’s system of internal control to safeguard shareholders’
investment and the Company’s assets. Internal control facilitates the effectiveness and efficiency of operations,
helps ensure the reliability of internal and external reporting, assist compliance with laws and regulations, and
strengthens overall risk management of the environment within which the business operates. To this end, the
Board has empowered the Audit Committee, as part of its charter, to monitor the working of the internal
control system within the Company and report its findings to the Board on a regular basis.
The Audit Committee is assisted by the external and internal auditors in its review and supervision of
internal control operations within the Company. Both the external and internal auditors are independent of
Management. The Internal Audit Office of the Company reports functionally and directly to the Audit
Committee. The annual work plan of the Internal Audit Office forms the basis upon which the systems within
the Company relating to internal control, risk management and corporate governance are reviewed and reported
to the Audit Committee and Board of Directors.
On an annual basis, the Audit Committee evaluates the adequacy and efficient operation of the internal
control system of the Company by reference to the following five factors:-
1. Organization control and environment
2. Risk management
3. Management control activities
4. Information and communication
5. System monitoring
The findings of this evaluation are then reported to the Board. In the Board Meeting No. 2/2008, on
February 20, 2008, based on the report of the Audit Committee, the Board concluded that the Company had
adequate internal control and risk management system that was operating effectively.
2. Management Supervision
The Board sets the business direction and objectives of the Company, and approves the business plan
developed by the Management to fulfill the goals of the Company. Management performance is reviewed on an
ongoing basis through achievements of the business plan and budget, and other financial and operational reports
submitted to the Board. Management performance is evaluated annually in the determination of compensation
rewards.
35
CS LOXINFO

3. Risk Management
The Company has a policy to manage all risks which may have an impact on the Company, to ensure
that the Company operates within an appropriate and acceptable risk level.
The Chairman of the EXCOM has appointed a Risk Management Committee (RMC), comprising of the
MD as the Chairman, and the heads of major departments as the committee members. The Office of Internal
Audit acts as the secretary to the committee to ensure risks are properly assessed and the appropriate measures
are taken to manage them. The RMC determines the risk level of each risk factor identified and monitors
the high risk areas closely. The RMC also monitors market trends to identify market related risks that need
to be addressed.
Previously, the Office of Internal Audit updated the AC the risk management on a quarterly basis and the
Board on an annual basis, including proposals to revise the Risk Management Policy. In the Board meeting
No. 3/2008 on March 19, 2008 the Board approved increasing number of reporting of risk management
effectiveness to the Board from annually to quarterly.
Chapter
5: Code of Conduct
The Company agreed having corporate Code of Conduct as a part of the CG policy to be the guideline
and good practice for the directors, management, and staff to hold and strictly practice the established Code of
Conduct. The Code of Conduct covers the following major topics.
1. Business Competition
The Company has a policy of free and fair competition, not bind the distributors to solely sell the
products of the Company. The Company shall not acquire information on its competitors by any illegal or
unethical methods.
2. Conflicts of interest
In the case that the directors, management, and staff face the situation that their personal interests may
conflict with the interest of the Company, the Code of Conduct discusses below major issues for being the
guideline for consideration.
• The prohibition of personally receiving and offering of money or other benefit to the customer, partner,
and anybody they are dealing with on behalf of the Company. Receiving of gifts or business
entertainment should be avoided where the value of gifts or nature of the entertainment deem
inappropriate or far greater than for normal business relationship.
• The directors, management, and staff members at all levels shall not engage in any other business that
affects their performance, duties and working hours in the Company. A director or an executive, under
the definition of the SEC, shall report his(her) business involvement with the Company to his(her)
direct supervisor, whether it is his(her) direct business, his(her) family, or other legal entity, by using
the specific Company’s form, as soon as his(her) firstly joining with the Company, immediately after
entering into such business, and on a yearly basis. The completed form shall be secured at an
appropriate Department. Every member of the Company is prohibited from participating in any other
business which is in competition with the companies in the Group, regardless of whether the
management or the staff directly or indirectly benefit from that business.
36
CS LOXINFO

• The holding of director position in a company outside the Group shall not infringe on relevant laws
and regulations. Approval by the authorized person shall be obtained in advance, except for being a
director in a non profit organization.
• The directors, executives, and staff can participate in political activities under the terms of the
Constitution of Thailand. However, they could not claim the status of being a Company employee for
the purpose of political activities, or to mislead that the Company is support or in favour of a political
party. The Company has the policy of politics neutrality. The directors, executives and staff shall resign
if they would like to accept a political related position, or stands for both regional and national
election.
• In the case of connected or related parties transactions within the Group, the rules and procedures of
granting approval shall be conformed by upholding the best interests of the Company as if dealing with
outside parties (on arms’ length basis). In case of a large scale transaction that the approval authorized
person is the director or Managing Director, the guideline regarding approval making is available in
clause no. 4 and 5 of chapter 1. For the smaller scale of transactions, the Office of Internal Audit will
regularly review for the appropriateness of the price and conditions of the transactions. Overall
connected and related parties transactions will also be reported by company and type of the transactions
to the AC on quarterly basis, for their consideration that the transactions are of normal business
transactions similar to those transacted with external parties.
We also pay strong attention to the process of entering into the connected or related parties transactions
and the information disclosure according to the relevant rules and regulations of the SET and Thai accounting
standard because it is the matter should be easily sensitive to the shareholders especially the minority ones.
3. Use of inside information, trading of the Group’s securities, and distribution of information or
interview to the press or the public
The corporate Code of Conduct specified that the directors, management, and staff, at all levels, shall not
use significant inside information of the Group, and has not yet been disclosed to the public, for their own or
others’ interests.
Although investment and trading in the Group’s securities is the individual’s right and freedom, the Code
of Conduct requires the directors, management, and staff to avoid or suspend trading of the Group’s securities
for a period of one month in prior to the disclosure of all financial statements to the public, in order to prevent
the conflict of interest.
In addition, for compliance with the clause No. 59 of the Securities and Exchange Act, B.E. 2535, the
Company requires the directors and management, including their spouse and minor child to report the securities
holding and changes by the form and on the time specified by the regulation. Reporting to the Board for
acknowledgement was also made on quarterly basis.
The distribution of any information relating to the Company shall be made only by the person having
direct responsibility, or being specifically assigned, on the basis of fact, correctness, and prudence.
37
CS LOXINFO

Directors and Management Team
Prof. Wongkulpat Snidvongs na Ayudyha, M.D.
Age 67
Title
Independent Director and Chairman of the Board
Shareholding*
None
Relationship with Management
None
Highest Education
Doctorate Degree FRCOG:D.Obst.RCOG (UK):MB.BS (London) MRCS.LRCP(England)
Governance Training of IOD DCP: Directors Certification Program Class 89/2007
Experience Present Consultant Obstetrician and Gynecologist in private practice
Honorary Consul of Republic of Lithuania in Thailand
Illegal Record in past 10 years
Mr. Prathueng Srirodbang
Committee Member, Development Cooperation Foundation
2007 - Present Independent Director and Chairman of the Board, CS 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
None
of Ob. Gyn. Faculty of Medicine, Chulalongkorn University
Age 69
Title
Independent Director and Chairman of the Audit Committee
Shareholding*
None
Relationship with Management
None
Highest Education
Mini MBA, Thammasat University
Barrister-at-law The Thai Bar
Bachelor Degree in Laws, Thammasat University
Governance Training of IOD DAP: Directors Accreditation Program Class 11/2004
Experience 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 Commerce
Illegal Record in past 10 years
None
Mr. Gan Hui Beng
Age 57
Title
Independent Director and Member of the Audit Committee
Shareholding*
None
Relationship with Management
None
Highest Education
Bachelor Degree in Economics, University of Wales Institute of Science and
Technology, U.K.
Governance Training of IOD DCP: Directors Certification Program Class 47/2004
Experience 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, 2007.
38
CS LOXINFO

CS LoxInfo Public Company Limited
Dr. Sillapaporn Srijunpetch
Age 44
Title
Independent Director and Member of the Audit Committee
Shareholding*
None
Relationship with Management
None
Highest Education
Doctorate Degree in Accounting, Manchester Business School,
University of Manchester, England
Governance Training of IOD DAP: Directors Accreditation Program Class 51/2006
Experience 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, PriceWaterhouseCoopers ABAS Limited
Illegal Record in past 10 years
None
Mr. Viroj Tocharoenvanith
Age 43
Title
Director
Shareholding*
None
Relationship with Management
None
Highest Education
Master Degree in Computer Engineering, Asian Institute of Technology
Governance Training of IOD ACP: Audit Committee Program Class 13/2006
DCP: Directors Certification Program Class 59/2005
FN: Finance for Non-Finance Director Class 18/2005
Experience 2006 - Present Director, C&C International Venture Co., Ltd.
Executive Vice President, CAT Telecom Plc.
2005 - Present Director, Thai - Amadeus South East Asia Co., Ltd.
2004 - Present Director, CS LoxInfo Plc.
2004 - 2006 Vice President (Class 10), Other Business Partners Department,
CAT Telecom Plc.
1999 - 2004 Director (Class 9), Telecom Business Development Department,
CAT Telecom Plc.
1996 - 1998 Senior Manager (Class 8), The Communications Authority of Thailand
1985 - 1996 Engineer (Class 3), The Communications Authority of Thailand
Illegal Record in past 10 years
None
* Includes holdings by spouse and minor children as of December 31, 2007.
39
CS LOXINFO

Mr. Mark Chong Chin Kok
Age 44
Title
Director and Member of the Executive Committee
Shareholding*
None
Relationship with Management
None
Highest Education
Master Degree in Business Administration, National University of Singapore
Master Degree in Research in Electronics System, ENSERG, INPG, Grenoble France
Governance Training of IOD DAP: Directors Accreditation Program Class 57/2006
Experience 2008 - Present Executive Vice President (Networks), Singapore Telecommunications Ltd.
2003 - Present Director and Member of the Executive Committee, CS LoxInfo Plc.
2006 - 2007 Vice President (Global Accounts), Singapore Telecommunications Ltd.
2001 - 2006 Chief Executive Officer, SingTel Global Office, Singapore
Telecommunication Ltd.
1999 - 2001 Managing Director, Shinwatra Paging / Advanced Paging
1997 - 1999 General Manager (Paging) / GM (Technology),
Singapore Telecommunication Ltd.
1994 - 1997 Director (Sea, Air & Communications) Ministry of Communications
1990 - 1994 Head of Department, Ministry of Defence
Illegal Record in past 10 years
Dr. Dumrong Kasemset
None
Age 53
Title
Director and Chairman of the Executive Committee
Shareholding*
None
Relationship with Management
None
Highest Education
Doctorate Degree in Electrical Engineering, Massachusetts Institute of Technology, USA
Governance Training of IOD DAP: Directors Accreditation Program Class 2/2003
Experience 2004 - Present Director and Chairman of the Executive Committee, CS LoxInfo Plc.
2000 - Present Member of the Executive Committee, Advanced Info Service Plc.
Member of the Executive Committee, Shin Corporation Plc.
1999 - Present Director and Member of the Executive Committee, Shin Satellite Plc.
1997 - Present Chairman of the Executive Committee, Satellite and
International Business, Shin Corporation Plc.
2004 - 2007 Director and Member of the Executive Committee, ITV Plc.
1994 - 2000 President, Shinawatra Satellite Plc.
1995 - 1997 Vice Chairman of the Executive Committee, Policy, Shinawatra Group
1993 - 1994 Executive Vice President, IBC Cable TV
1991 - 1992 Group General Manager, IBC Cable TV
Senior Manager - Business Development, Shinawatra Group
1989 - 1991 Program Manager Integrated Optoelectronics, GE Aerospace,
New York, USA
1986 - 1989 Manager, Ga As IC Materials, Microwave Semiconductor Co., Ltd.,
Siemens Group, New Jersey, USA
Illegal Record in past 10 years
None
* Includes holdings by spouse and minor children as of December 31, 2007.
40
CS LOXINFO

Mr. Yongsit Rojsrivichaikul
Age 43
Title
Director and Member of the Executive Committee
Shareholding*
None
Relationship with Management
None
Highest Education
Master Degree in Business Administration, California State University, USA
Governance Training of IOD DCP: Directors Certification Program Class 89/2007
Experience 2007 - Present Director and Member of the Executive Committee, CS LoxInfo Plc.
2004 - Present Executive Vice President - Marketing & Sales, Shin Satellite Plc.
1991 - 2004 Vice President - Marketing, Shin Satellite Plc.
Vice President - Marketing & Sales, Shin Satellite Plc.
Vice President - International Sales, Shin Satellite Plc.
Assistant Vice President - Marketing and Sales, Shin Satellite Plc.
Assistant Vice President - International Sales, Shin Satellite Plc.
Marketing and Sales - Manager, Shin Satellite Plc.
Business Development - Manager, Shin Satellite Plc.
Illegal Record in past 10 years
None
Mr. Tanadit Charoenchan
Age 40
Title
Director and Member of the Executive Committee
Shareholding*
None
Relationship with Management
None
Highest Education
Master Degree in Business Administration, Sloan School of Management,
Massachusetts Institute of Technology, USA
Master Degree in Science (Computer), Chulalongkorn University
Governance Training of IOD DAP: Directors Accreditation Program Class 66/2007
Experience Feb 2008 - Present Executive Vice President - Finance and Accounting, Shin Satellite Plc.
2007 - Present Director and Member of the Executive Committee, CS LoxInfo Plc.
2004 - Jan 2008 Acting General Manager, Shin Broadband Internet (Thailand) Co., Ltd.
2002 - Jan 2008 Vice President - Finance and Accounting, Shin Satellite Plc.
2000 - 2001 Assistant Vice President - Finance and Accounting, Shin Satellite Plc.
1995 - 1999 Department Manager- Finance and Accounting, Shin Satellite Plc.
1992 - 1995 Accounting Manager, IBC Plc.
1989 - 1992 Senior Auditor, SGV Na-Thalang & Co., Ltd.
Illegal Record in past 10 years
None
Mr. Anant Kaewruamvongs
Age 46
Title
Managing Director
Shareholding* 0.045%
Relationship with Management
None
Highest Education
Master Degree in Management, SASIN Graduate Institute of Business
Administration of Chulalongkorn University
Governance Training of IOD DCP: Directors Certification Program Class 66/2005
DAP: Directors Accreditation Program Class 45/2005
Experience 2005 - Present Managing Director, CS LoxInfo Plc.
Feb 2007-Mar 2007 Director and Member of the Executive Committee, CS LoxInfo Plc.
1999 - 2005 Deputy Manager, CS LoxInfo Plc.
1997 - 1999 General Manager, CS Satellite Phone Co., Ltd.
1995 - 1997 General Manager, Lao Telecommunications Co., Ltd.
1993 - 1995 Business Development Manager, Internation Broadcasting Corporation
Illegal Record in past 10 years
None
* Includes holdings by spouse and minor children as of December 31, 2007.
41
CS LOXINFO

Mr. Anuwat Sanguansappayakorn
Age 42
Title
Chief Finance Officer
Shareholding*
None
Relationship with Management
None
Highest Education
Master Degree in Accounting, Chulalongkorn University
Governance Training of IOD DCP: Directors Certification Program Class 88/2007
Experience 1998 - Present Chief Finance Officer, CS LoxInfo Plc.
1997 - 1997 Planing 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, Deloitte Touch Thomatsu Jaiyos
Illegal Record in past 10 years
None
Mrs. Aksara Assavapokee
Age 58
Title
Senior Director - Finance & Accounting
Shareholding*
None
Relationship with Management
None
Highest Education
Bachelor Degree in Accounting, Chiangmai University
Governance Training of IOD
None
Experience 2001 - Present Senior Director - Finance & Accounting, CS LoxInfo Plc.
1998 - Present Director, T.A.S. Co., Ltd.
1998 - 2000 Manager, A.C.N. Center Co., Ltd.
1995 - 1997 Manager, T.A.S. Co., Ltd.
1981 - 1994 Accounting Manager, Kodak (Thailand) Co., Ltd.
1973 - 1980 Auditor, Cooper & Lybun Co., Ltd.
Illegal Record in past 10 years
None
Dr. Somchai Kittichaikoolkit
Age 41
Title
Director - Marketing
Shareholding*
None
Relationship with Management
None
Highest Education
Doctorate Degree in Electronic Engineering, Tohoku University, Japan
Governance Training of IOD
None
Experience 1999 - Present 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, 2007.
42
CS LOXINFO

Mr. Pinyo Po-ngern
Age 42
Title
Director -Information System
Shareholding* 0.001%
Relationship with Management
None
Highest Education
Master of Science (Applied Statistics and Information Technology),
National Institute of Development Administration
Governance Training of IOD
None
Experience 2006 - Present Director - Information System, CS LoxInfo Plc.
2004 - 2006 Assistant Director - Information System, CS LoxInfo Plc.
2000 - 2004 Assistant vice President- Software System, Loxley
Information Services Co., Ltd.
1997 - 2000 IT Manager, Mahaphant Fibre - Cement Plc.
1992 - 1997 Assistant Managing Director, Data Products Systems Co., Ltd.
Illegal Record in past 10 years
None
Mr. Pote Punsiripote
Age 45
Title
Director - Sales
Shareholding*
None
Relationship with Management
None
Highest Education
Master Degree in Business Administration (Marketing), Cleveland State University,
USA
Governance Training of IOD
None
Experience 2006 - Present Director - Sales, CS LoxInfo Plc.
2005 - 2006 Sales Director, Asiasoft Corporation Co., Ltd.
2004 - 2005 Sales Promotion Manager, Niyompanit Co., Ltd. (Chiang Mai)
2003 - 2004 Bangkok Sales Manager, Whirlpool (Thailand) Co., Ltd.
Product Manager, Whirlpool (Thailand) Co., Ltd.
Illegal Record in past 10 years
None
Mrs. Suwanund Jatesawangsri
Age 42
Title
Director - Customer Support
Shareholding* 0.005%
Relationship with Management
None
Highest Education
Master Degree in Business Administration, University of the Thai Chamber of Commerce
Governance Training of IOD
None
Experience 2006 - Present Director-Customer Support, CS LoxInfo Plc.
2003 - 2006 Assistant Director- Sales, CS LoxInfo Plc.
1996 - Present Assistant Director - Sales, Loxley Information Services Co., Ltd.
Illegal Record in past 10 years
None
* Includes holdings by spouse and minor children as of December 31, 2007.
43
CS LOXINFO

Mr. Kiat Intarasuriyawong
Age 37
Title
Director - Technical and Operations
Shareholding* 0.003%
Relationship with Management
None
Highest Education
Bachelor Degree in Electronic Engineering, King Mongkut’s Institute of
Technology Ladkrabang
Governance Training of IOD
None
Experience 2007 - Present Director - Technical and Operation, CS LoxInfo Plc.
2003 - 2007 Acting Director - Technical and Operation, CS LoxInfo Plc.
1992 - 2003 Assistant Vice President, Loxley Information and Services Co., Ltd.
1991 - 1992 Computer Engineer, Linestel Co., Ltd.
1990 - 1991 Computer Engineer, Thai Technologies and Computer Co., Ltd.
Illegal Record in past 10 years
None
Mrs. Suwanna Janesawatpong
Age 39
Title
Director-Internal Audit
Shareholding*
None
Relationship with Management
None
Highest Education
Master Degree, Master of Business Administration (Finance), Chulalongkorn University
Governance Training of IOD
None
Experience 2003 - Present Head of Internal Audit, CS LoxInfo Plc.
2001 - 2003 Internal Audit Specialist, Shin Satellite 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
Mr. Kamonmit Vudhijumnonk
Age 56
Title
Secretary to the Board of Directors
Shareholding*
None
Relationship with Management
None
Highest Education
Master Degree in Laws (LL.M), University of London
Master Degree in Laws (LL.M), Magna Cum Laude, University of Brussels
Governance Training of IOD
None
Experience 2004 - Present Secretary to the Board of Directors, CS LoxInfo Plc.
2002 - Present Vice President - Legal, Shin Satellite Plc.
1999 - 2001 Assistant Vice President - Legal, Shin Satellite Plc.
1995 - 1998 Assistant Vice President - Legal, Shinawatra Computer & Communication Plc.
1994 - 1995 Lawyer, Couderts Brothers, Bangkok Office
1993 - 1994 Lawyer, Baker & McKenzie, Bangkok Office
1978 - 1993 Legal Officer, Office of the Juridical Council Association
(Office of the Council of State)
Illegal Record in past 10 years
None
* Includes holdings by spouse and minor children as of December 31, 2007.
44
CS LOXINFO

Directors’ Shareholding in the Company
and its Subsidiaries of the Year 2007
Name
Position
Prof. Wongkulpat Snidvongs Chairman of the Board
na Ayudyha, M.D.* of Directors
Dr. Dumrong Kasemset Director
Mr. Pratheung Srirodbang
Mr. Gan Hui Beng
Dr. Sillapaporn Srijunpetch
Mr. Viroj Tocharoenvanith Director
Mr. Mark Chong Chin Kok Director
Mr. Yongsit Rojsrivichaikul Director
Mr. Tanadit Charoenchan Director
Chairman of the Audit Committee
Member of the Audit Committee
Member of the Audit Committee
CS LoxInfo
Plc.
Ordinary
Shares
2007 2006
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Teleinfo
Media Plc.
Ordinary
Shares
Loxley
Information
Services
Co., Ltd.
Ordinary
Shares
AD Venture
Co., Ltd.
Ordinary
Shares
2007 2006 2007 2006 2007 2006
Watta
Hunsa Dot Com Sodamag Corp Shineedotcom Classifieds
Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd.
Name
Position
Ordinary Ordinary Ordinary Ordinary
Shares Shares Shares Shares
2007 2006 2007 2006 2007 2006 2007 2006
Prof. Wongkulpat Snidvongs Chairman of the Board - - - - - - - -
na Ayudyha, M.D.* of Directors
Dr. Dumrong Kasemset Director
- - - - - - - -
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. Viroj Tocharoenvanith Director
- - - - - - - -
Mr. Mark Chong Chin Kok Director
- - - - - - - -
Mr. Yongsit Rojsrivichaikul Director
- - - - - - - -
Mr. Tanadit Charoenchan Director
- - - - - - - -
As at December 31, 2007, the number of ordinary shares includes holding by spouse and children age under 20.
* Being appointed by the AGM No.1/2007 on April 23, 2007 as the Director and Chairman of the Board.
-
1
-
-
-
-
1
-
1
-
1
-
-
-
-
-
-
1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
45
CS LOXINFO

Wherever you go...
fill your calls with pleasure.
46
CS LOXINFO

International
Roaming
47
CS LOXINFO

Investment Structure of Shin Group
1), 2)
Shin Corporation Plc.
Advanced Info Service Plc. 2)
42.71%
Digital Phone Co., Ltd.
98.55%
Wireless Device Supply Co., Ltd.
99.99%
Advanced Datanetwork
Communications Co., Ltd.
51.00%
Advanced Contact Center Co., Ltd.
99.99%
Advanced MPay Co., Ltd.
99.99%
Advanced Magic Card Co., Ltd.
99.99%
AIN GlobalComm Co., Ltd.
99.99%
Super Broadband Network Co., Ltd.
99.93%
Data Network Solutions Co., Ltd.
49.00%
Advanced Wireless Network Co., Ltd.
99.93%
Mobile from Advance Co., Ltd.
99.99%
Shin Satellite Plc. 2)
41.28%
Shin Broadband Internet
(Thailandv) Co., Ltd.
99.99%
CS LoxInfo Plc. 2)
39.89%
Teleinfo Media Plc.
99.99%
Loxley Information
Services Co., Ltd.
99.86%
AD Venture Co., Ltd. 1)
99.99%
Shineedotcom Co., Ltd.
99.99%
Hunsa Dot Com Co., Ltd.
99.99%
Sodamag Corp Co., Ltd.
99.99%
Watta Classifieds Co., Ltd.
60.00%
NTU (Thailand) Co., Ltd.
71.85%
Shenington Investments Pte Ltd.
1)
51.00%
Cambodia Shinawatra Co., Ltd.
100%
Lao Telecommunications Co., Ltd.
49.00%
IPSTAR Co., Ltd.
99.14%
IPSTAR Australia Pty Ltd.
100%
IPSTAR New Zealand Ltd.
100%
IPSTAR DO BRASIL 3)
100%
Star Nucleus Co., Ltd.
70.00%
Spacecode LLC
70.00%
IPSTAR International Pte. Ltd.
100%
IPSTAR Global Services Ltd.
100%
48
CS LOXINFO

As of February 4, 2008
ITV Plc. 2)
52.92%
Artware Media Co., Ltd.
99.99%
Media Connex Co., Ltd.
60.00%
I.T. Applications and Services Co., Ltd.
99.99%
Payment Solution Co., Ltd.
99.99%
Matchbox Co., Ltd.
99.96%
1) Holding Company
2) Listed Company on the Stock Exchange of Thailand
3) On process of set up and register the Company
Remark • Data Line Thai Co., Ltd., which is a subsidiary of Advance Info Service PLC, registered of its cessation with the MOC
on November 29, 2007, currently on process of liquidation.
• Com Chat Co., Ltd., Idea Maker Co., Ltd. and Decode Co., Ltd. which are subsidiaries of Watta Classifieds Co., Ltd.,
registered of its cessation with the MOC on November 30, 2007, currently on process of liquidation.
49
CS LOXINFO

Major Shareholders
The first top 10 shareholders on the closing
The first top 10 shareholders on the closing date of the registration book as of August 24, 2007 are as follows:-
No. Name No. of Shares Percentage of Investment
1 SHIN BROADBAND INTERNET (THAILAND)
COMPANY LIMITED 250,099,990 39.90
2 SINGAPORE TELECOMMUNICATION LIMITED 84,057,030 13.41
3 PHATRA SECURITIES PUBLIC COMPANY LIMITED 48,561,500 7.75
4 POINT ASIA DOT COM (THAILAND) COMPANY LIMITED 29,727,710 4.74
5 THAI NVDR COMPANY LIMITED 29,465,800 4.70
6 UBS SECRITIES LLC-HFS CUSTOMER SEGREGATED
ACCOUNT 26,055,200 4.16
7 CITIGROUP GLOBAL MARKETS LIMITED-IPB
CUSTOMER COLLATERAL ACCOUNT 13,434,900 2.14
8 HSBC (SINGAPORE) NOMINEES PTE LIMITED 11,080,900 1.77
9 NORTRUST NOMINEES LIMITED 8,208,200 1.31
10 GERLACH & CO.-CHARLES SCHWAB FBO CUSTOMERS 5,426,700 0.87
Total 506,117,930 80.75
Source: Major Shareholders as of August 24, 2007 prepared by Thailand Securities Depository Co., Ltd. The investors can find
for more information in website: www.set.or.th before Annual General Shareholders Meeting for the year 2008 date.
• The major shareholders whose behaviors have had a significant influence on the operational policies or
management of the company.
Shin Broadband Internet (Thailand) Limited held by Shin Satellite Public Company Limited in the amount
of 94,728,493 shares, or 99.99 percent of the paid-up capital. MR. SURIN UPATKOON
68.00%
At the present, Shin Corporation Public Company Limited is a major
CYPRESS
shareholder of Shin Satellite Public Company Limited. The structure of
(Temasek Holdings)
29.90%
shareholding is as follows:-
MR. PONG SARASIN
1.27%
CYPRESS
(Temasek Holdings)
48.99%
SIAM COMMERCIAL BANK
5.78%
KULARB KAEW
45.22%
MR. SUPHADEJ POONPIPAT
0.82%
ASPEN
(Temasek Holdings)
41.73%
CEDAR
54.50%
SHIN
50
CS LOXINFO

General Information of the
Company and Subsidiaries
General Information
of the Company
General Information
of Subsidiaries
CS LoxInfo Public Company Limited (CSL)
Nature of Business
Internet data center services, Internet access
and satellite uplink-downlink Service for
domestic and international communications
Head Office
414 Phaholyothin Road, Samsennai,
Phayathai, Bangkok 10400
Branch Office
971, 973 President Tower, 11 th Floor,
Ploenchit Road, Lumpini, Pathumwan,
Bangkok, 10330
Registration No. 0107546000377
Telephone
0 2263 8000
Fax
0 2263 8132
Website
www.csloxinfo.com
Registered Capital 660,849,474 shares
Par Value
Baht 1
Paid-up Capital Baht 626,899,344
Teleinfo Media Public Company Limited (TMC)
Nature of Business
Head Office
Branch Office 1
Branch Office 2
Registration No.
Telephone
Fax
Website
Registered Capital
Par Value
Paid-up Capital
Percent of Investment of CSL 99.99%
Publishing telephone directories and
advertising
414 Phaholyothin Road, Samsennai,
Phayathai, Bangkok 10400
273 Soi Sang U-thai, 50 Sukkhumvit
Road, Phakhanong, Klongtoey, Bangkok
25 th - 28 th Floor, Vanit Bldg. 2, 1126/2
New Phetchaburi Road, Makkasan,
Ratchathewi, Bangkok 10400
0107548000609
0 2262 8888
0 2262 8899
www.teleinfomedia.net
17,353,400 shares
Baht 10
Baht 173,534,000
51
CS LOXINFO

General Information
of Subsidiaries
Loxley Information Services Company Limited (LoxServe)
Nature of Business Providing internet services
Head Office 414 Phaholyothin Road, Samsennai,
Phayathai, Bangkok 10400
Branch Office
971, 973 President Tower, 12 th Floor,
Ploenchit Road, Lumpini, Pathumwan,
Bangkok 10330
Registration No. 0105539021702
Telephone
0 2263 8000
Fax
0 2263 8102
Registered Capital 26,010,000 shares
Par Value
Baht 10
Paid-up Capital Baht 260,100,000
Percent of Investment of CSL 99.86%
AD Venture Company Limited (ADV)
Nature of Business ADV derives all of its profits from the
operational performance of SHINEE
Head Office
414 Phaholyothin Road, Samsennai,
Phayathai, Bangkok 10400
Branch Office
Room 2101, 2104, 21 st Floor, 1126/2
Vanit Bldg. 2, New Phetchaburi Road,
Makkasan, Ratchathewi, Bangkok 10400
Registration No. 0105542060659
Telephone
0 2207 6800
Fax
0 2207 6899
Registered Capital 17,197,000 shares
Par Value
Baht 10
Paid-up Capital Baht 171,970,000
Percent of Investment of CSL 99.99%
52
CS LOXINFO

General Information
of Subsidiaries
Shineedotcom Company Limited (SHINEE)
Nature of Business Provider of mobile contents, community
portal services, and other internet
related businesses
Head Office
414 Phaholyothin Road, Samsennai,
Phayathai, Bangkok 10400
Branch Office
Room 2101, 2104, 21 st Floor, 1126/2
Vanit Bldg. 2, New Phetchaburi Road,
Makkasan, Ratchathewi, Bangkok 10400
Registration No.
0105542083071
Telephone
0 2207 6800
Fax
0 2207 6899
Website
www.shinee.com
Registered Capital 8,000,000 shares
Par Value
Baht 10
Paid-up Capital Baht 80,000,000
Percent of Investment of ADV 99.99%
Hunsa Dot Com Company Limited (HUNSA)
Nature of Business Provider of mobile contents, community
portal services, and other internet related
businesses
Head Office
414 Phaholyothin Road, Samsennai,
Phayathai, Bangkok 10400
Branch Office
Room 2101, 2104, 21 st Floor, 1126/2
Vanit Bldg. 2, New Phetchaburi Road,
Makkasan, Ratchathewi, Bangkok 10400
Registration No.
0505542003082
Telephone
0 2207 6800
Fax
0 2207 6898
Website
www.hunsa.com
Registered Capital 800,000 shares
Par Value
Baht 10
Paid-up Capital Baht 8,000,000
Percent of Investment of SHINEE 99.99%
53
CS LOXINFO

General Information
of Subsidiaries
Sodamag Corp Company Limited (SODAMAG)
Nature of Business Provider of mobile contents, community
portal services, and other internet related
businesses
Head Office
414 Phaholyothin Road, Samsennai,
Phayathai, Bangkok 10400
Branch Office
Room 2101, 2104, 21 st Floor, 1126/2
Vanit Bldg. 2, New Phetchaburi Road,
Makkasan, Ratchathewi, Bangkok 10400
Registration No.
0105542078001
Telephone
0 2207 6800
Fax
0 2207 6898
Registered Capital 2,179,219 shares
Par Value
Baht 5
Paid-up Capital Baht 10,896,095
Percent of Investment of SHINEE 99.99%
Watta Classifieds Company Limited (WATTA)
Nature of Business
Head Office
Branch Office
Registration No.
Website
Telephone
Fax
Registered Capital
Par Value
Paid-up Capital
Percent of Investment of CSL 60.00%
Provides sub-advertisement and classified
services in its own publications publishes
and sells various publications such as
newspapers, magazines, pocket books
and others.
71/30 Borommaratchachonnani Road,
Arun-amarin, Bangkoknoi, Bangkok 10700
71/36 Borommaratchachonnani Road,
Arun-amarin, Bangkoknoi, Bangkok 10700
0105542015891
www.watta.co.th
0 2422 8000
0 2422 8032
200,000 shares
Baht 100
Baht 20,000,000
54
CS LOXINFO

General Information
of Subsidiaries
Com Chat Company Limited (Com Chat)
Nature of Business Conducting film and plate production
Head Office
71/36 Borommaratchachonnani Road,
Arun-amarin, Bangkoknoi, Bangkok 10700
Registration No.
0105544054354
Telephone
0 2422 8000
Fax
0 2422 8032
Registered Capital 10,000 shares
Par Value
Baht 100
Paid-up Capital Baht 1,000,000
Percent of Investment of WATTA 99.94%
Note: Registration of its liquidaion with the MOC on November 30, 2007
and it is in the process of ceasing its existence.
Idea Maker Company Limited (Idea Maker)
Nature of Business Operating publishing business
Head Office
71/30 Borommaratchachonnani Road,
Arun-amarin, Bangkoknoi, Bangkok 10700
Registration No.
0105542000605
Telephone
0 2422 8000
Fax
0 2422 8032
Registered Capital 23,000 shares
Par Value
Baht 100
Paid-up Capital Baht 2,300,000
Percent of Investment of WATTA 99.97%
Note: Registration of its liquidaion with the MOC on November 30, 2007
and it is in the process of ceasing its existence.
Decode Company Limited (Decode)
Nature of Business Advertising and producing premium goods
Head Office
71/36 Borommaratchachonnani Road,
Arun-amarin, Bangkoknoi, Bangkok 10700
Registration No.
0105548077065
Telephone
0 2422 8000
Fax
0 2422 8032
Registered Capital 10,000 shares
Par Value
100 Baht
Paid-up Capital Baht 1,000,000
Percent of Investment of WATTA 99.93%
Note: Registration of its liquidaion with the MOC on November 30, 2007
and it is in the process of ceasing its existence.
55
CS LOXINFO

Business Overview
CS LoxInfo Public Company Limited
CS LoxInfo Public Company Limited is
Thailand’s leading top-quality internet service
provider under the name “CS LOXINFO”. The
effectiveness of the network management, together
with the value added and after-sales service that can
respond well to the customers’ requirements shows
we are the leading top-quality internet service
provider for our target customers nationwide.
Products and Services
With continued improvement, CS LOXINFO
becomes the internet service provider with the widest
range of services, serving all groups of customer,
employing various methods of technology. We can
service both the individual and the multi-simultaneoususers,
which is called corporate service, particularly
for those corporations requiring internet for their
businesses operations.
Major Services of the Company
1. Internet service via leased circuit (Leased Line)
The service is designed for corporate customers
who require the Internet for operating their businesses
by using many computers at the same time, such as,
orders sending and receiving from overseas e-mail,
inter-branch data transmission both locally and
internationally, online customer service, etc. Last
year, 2007, we had strength in sustaining service
quality standards with a network capability that could
provide continuous service. We had engineering and
after-sales services with the ISO 9001:2000
certification standard. We also had value added
services which were flexible with the requirements of
56
CS LOXINFO

each customer, especially security solutions and
network connection service. The target group grows
continually, both in number of corporate customers
and quantity of the bandwidth utilization for each
customer.
2. High speed internet services via telephone
line (ADSL)
ADSL is an economy high speed internet
service. We pay attention to providing the service to
small and medium size corporations. We regard our
strengths as firstly, our flexible service, and secondly
our value added services that can fulfill the customers’
requirements. This can enable them to manage their
internal internet services more conveniently, as well
as the inter-branch data transmission.
3. High speed internet services via satellite
network (IPSTAR)
This is a high speed internet service via IPSTAR
satellite. Its strength lies in its nationwide coverage
area; it is a wireless internet service via satellite. We
are the first provider of this service in Thailand, so it
is to our advantage. We have service experience both
in quality of service and after-sales service. We also
have alliances with installers and distributors across
the country. Since the IPSTAR was launched in late
2005, the cost and service charges were decreasing,
while the demand of high speed internet was
increasing, such as usage demand in remote areas. As
a result, we can expand more of our customer base.
4. Internet services via telephone line (Dial-up)
The internet service via a telephone line focuses
on individual home users who use the internet, but
demand a lower price, the strength of CS LOXINFO
on nationwide connection points, and convenient
distribution channels, e.g. convenience stores, book
shops, IT shops across the country, as well as the
AIS mobile phone both in GSM and 1-2-call system.
5. Internet Data Center or the IDC
IDC is the top-quality internet data center
service, connected directly to the Thailand Internet
Exchange via high-speed fiber optics. The circuit is
so large that it can support hundreds of thousands of
users at the same time. The ISO standard was also
implemented to control the quality to ensure a stable
service with the highest level of security to
customers.
6. Value Added Services
• International Roaming: The service for
customers who would like to use there internet
service account overseas, or for a foreigner
who would like to use there internet service
account in Thailand.
• Virtual Private Network (VPN): The service for
a corporate customer who wants to connect its
own internal network economically, but with
high efficiency, via the Internet network.
• E-Mail Solution: The fully integrated e-mail
service for corporate customers who may
prefer to manage their own mail servers, or let
CS LOXINFO do so. The service is also
equipped with value added services, especially
virus elimination and spam mail filtering.
• Managed Services: The special services for
corporate customers with teams of experts to
give consultation and manage the information
system of the customers via the Internet. The
service includes data security solutions e.g.
checking, protecting and eliminating viruses.
• VoIP: The economy international phone
service via the Internet. Customers can dial
from a computer or ordinary telephone that
connects to the analog telephone adaptor.
7. Uplink/Downlink Services
The Company provides comprehensive Uplink/
Downlink services via the Thaicom Teleport and
DTH Center at Lad Lum Kaew, which consist of TV
signaling via satellite, live satellite broadcasting, and
broadcasting of taped programs both in analog and
digital systems. The services are provided both on a
full-time basis with 24-hour operating staff, which is
suitable for exact broadcasting schedule programs,
and on an occasional basis, which is suitable for the
broadcasting of live programs, news, or a seasonal
sports competition. The service is provided in
cooperation with Shin Satellite Public Co., Ltd.
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CS LOXINFO

High Quality Internet
Market Condition and Competition
Overall, there is intense competition in the
Telecommunication Industry. It is not only from the
new internet service providers being granted licenses
from the National Telecommunications Committee,
but also from the new telecommunication network
providers. However, we can still continually maintain
good performance by implementing policies focused
on corporate customers, and expanding our customer
base. This should allow us to maintain our leading status
among the leased line internet service providers. Our
key strengths are as follows:-
• The customers, both individual and all levels
of corporation, trust in the quality service
under the name “CS LOXINFO”.
• Having good development of value added
services to fulfill the needs of customers, e.g.
e-mail, security, and Voice over IP.
• Having sufficient International Links for
serving customers.
• Having skillful engineers with 24-hour
availability for after-sales service.
Marketing Strategy
The Company is committed to provide top-quality
internet services, both in access to technical networks
and after-sales services, in order to increase usage
and the customer base, but with no policy of competing
on price. The key marketing strategies are as follows:-
1. Build brand image as Thailand’s leading
top-quality internet service provider
We positioned CS LOXINFO as a premium
internet service, offering a wide range of products and
services to respond to various needs by communicating
the strength of each service to the customers, as well
as delivering the service at the level that the
customers will be impressed or satisfied with, both
before and after sales.
2. Determine on service and quality improvement
We maintain the policy of managing the
international and domestic bandwidth, and number of
telephone lines to be sufficient and justified with the
number of the users, together with the continuous
improvement in efficiency of the nationwide networks.
In order to build confidence among customers,
ISO9001:2000, and management system with clear
indicators and measurement, were implemented.
3. Maintain good relationships with customers
We strive to create the highest customer
satisfaction. Other than fulfilling coverage services,
demanding proactive technical advice to corporate
customers is also offered, e.g., holding knowledge
sharing seminars in major provinces across the
country, visiting customers regularly, and checking
customers’ satisfaction by using survey techniques.
4. Leverage technology to increase competitive
advantage
We have continuously invested in the development
of the system and network, which not only support
the country’s growing demand, but also improves the
overall service efficiency.
5. Continuously create new products and services
We have continuously developed new value
added services, e.g., Virus Scan, Spam Mail Filtering,
Voice over Internet Protocol (VoIP), Backup System
via satellite, etc.
6. Develop network alliances
Due to the fact that the network has significant
impact to the services, we have developed good
relationships with all network providers. Moreover,
since the company has a large premium corporate
customer base, using leased line services, we derive
good business and technical cooperation from the
alliances.
7. Sales Promotion
We carefully design sales promotion campaigns
that fit with our target customers in order to retain
current customers and cooperate with alliances in
stepping into new markets or launching new services
58
CS LOXINFO

that attract new customers. We also promote campaigns
through the media and have marketing activities with
our target customers continuously.
Sales and Distribution Channels
Internet services of the Company are sold through
the following channels:-
1. Direct Sales: This is our main distribution
channel. We have sales teams giving advice and
consultation to corporate customers. They are located
both in Bangkok and all regions across the country.
They focus selling of the leased circuit internet
services and high speed internet services to small and
medium size corporate customers.
2. Outlet stores: The stores sell internet
packages for general customers across the country
through convenience stores, book shops, department
stores, supermarkets, IT centers, computer stores.
3. Mobile Phone: This is another channel where
customers can purchase internet hours via mobile
phone network of Advanced Info Service PLC. (AIS)
by dialing *48181, or *4818999, or *4818888.
4. Website www.csloxinfo.com: Customers can
apply for high speed internet service, purchase
internet hours, apply for services, etc.
5. Call Center, number 0-2263-8222: It services
24 hours a day, with no holiday.
Business Opportunity
The Company foresees an opportunity to
continually expand the business into the corporate
sector. Therefore, in 2008, we will strive to fulfill the
requirements of our corporate customers by further
developing the following services:-
• Managed Service: The service that can help
customers use the Internet conveniently and
safely, by completely overseeing and protecting
from viruses, Spam mail, or others relating to
e-mail system and security system.
• VoIP or Voice over Internet Protocol: a telephone
service via the Internet network that can help
customers reduce telephone charges compared
with existing ordinary fixed line, either local
inter-branch or international long distance
calls. It is suitable for businesses that have
nationwide branches, overseas headquarters,
including home users that have relatives abroad.
• VPN (Virtual Private Network): Data
transmission via the Internet network service
between headquarters and its nationwide
branches. Some Corporate customers do not
require building up their own basic network.
They merely rely on the high quality network
provided by CSL, with peak levels of efficiency
and security.
Future Project
Previously, the Company had continued increased
revenue from corporate customers. Therefore, we need
to focus on investment in technological research to
increase the service capability, from internet access to
value added services that will enable customers to
fully utilize the efficiency of the internet.
We have been granted the Internet Service
Providing License from the National Telecommunications
Commission (NTC) which included the Voice over IP
service-the telephone via internet service. With the
complementary technological development that enable
customers to use telephone via internet more
conveniently with clear voices, in 2008, we will
cooperate with alliances both in Thailand and aboard
to aggressively market the Voice over IP service to
our current corporate customer base.
Since we manage the system and network, we
have many engineers with expertise in the system and
network, including security solutions, e-mail system,
and relevant value added services. At the same time,
we conducted research and found that, although the
e-mail and security system had a more important
role, the small and medium size corporations were
still lacking IT specialists to control the systems.
Therefore, in 2008, we plan to develop and provide
quality e-mail and security systems at a low price for
small and medium size corporations.
59
CS LOXINFO

Teleinfo Media Public Company
Limited (TMC)
Teleinfo Media Public Company Limited (TMC)
provides media service for business through Yellow
Pages telephone directory and other media services.
Additionally it provides telephone subscribers profile, and
call center service for general and entertainment
information.
Thailand YellowPages has the largest information
in Thailand where consumers can search for required
information through three ways as per his/her convenience:
Flip Thailand YellowPages, Call 1188 Thailand
YellowPages, or Click the site www.yellowpages.co.th
Products and Services
1. Thailand YellowPages - Integrated Business
Medias
Thailand YellowPages compiles telephone
numbers of the product and service operators of over
3,000 categories, covering more than 600,000 operators
- the largest source in Thailand. It is easy to use with
the businesses alphabetically categorized under the
concept that these categories contain information that
is useful for the customer for better lifestyle or
business opportunities. Every chance, every need can
be easily fulfilled at your fingertips.
Thailand YellowPages is published in an easy
design, keeping in mind for the benefits of the consumers
residing in different parts of Thailand as follows:-
Bangkok and surrounding boundaries All areas
in one book, serving every need
Zones Publication Divided into 5 books for 5
different zones i.e. North, Northeast, Central, East and
South.
English Publication Bangkok and surrounding
areas in one book
2. City YellowPages, yellowpages for easier
city living
City YellowPages is the new publication that
was carried out with the sole purpose of bringing out
the best attribute of each province in Thailand. The
selection has been based on the goods and services
which best answer the varied lifestyle of each place.
Moreover, YellowPages also contain useful information
in regards to the popular tourist places, important
places, shopping places and restaurants of those cities.
There are also important contact numbers to make it
easier for the customer to search for and get in touch
with those places comfortably. Therefore, City
YellowPages is a new media that brings convenience
to the city lives. Last year saw the publication carried
information in three provinces i.e. Nonthaburi,
Pathumthani and Samut Prakan. Studies for other
provinces are being carried out for the planned
extension to other high potential places in 2008.
3. Thailand Corporate Pages
Thailand Corporate Pages is the single whitepaged
telephone directory that lists the names and
telephone numbers of all the businesses in Bangkok
and its surrounding areas. More than 600,000
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CS LOXINFO

usiness operators are listed alphabetically with the
names of governmental units and state enterprises
separated for easier search.
4. Thailand Export-Import YellowPages
Thailand Export-Import YellowPages, a
handbook for the exporters and importers in the forms
of a book and CD-Rom ready to assist in the
business of exports and imports. The book lists all the
names of importers and exporters in Thailand with
analysis on the perspective and outlook of each
industry to the latest situational report of the export
market both locally and overseas. It is published in
English with the contents divided into two sections:-
1. List of the names of the exporters and
importers in Thailand, divided into 13 main
industrial categories such as the products and
services related to agriculture, ornaments,
automobile parts, and electrical appliances, etc.
2. Names of the businesses that support international
trades such as airlines, commercial banks,
insurance companies and cargo companies, etc.
Thailand Export-Import YellowPages is
published for the export and import businesses both
locally and internationally and is available for sale in
the leading book stores.
5. Visitors’ Guide to Thailand – special
publication with the English Thailand YellowPages
Visitors’ Guide to Thailand, This guidebook with
the information through eyes of a foreigner to
Thailand has been endorsed directly by the Tourism
Authority of Thailand (TAT). It contains information
that will assure you a complete whole experience of
trip to Thailand with excellent recommendations for
places, goods and services around the country. It has
a supplement section for articles, documentaries, and
other information in regards to tourism in Thailand.
Telephone numbers and information of the goods and
services are also provided.
Visitor’s Guide to Thailand is published
bilingually, in English and Japanese in one single
volume and is distributed along with the English
Thailand YellowPages all over the country with the
main target at the rooms of leading hotels, tourism
promotion centers, airports, airport lobbies, and tourist
servicing businesses and authorities in Bangkok. It is
also available in the leading bookstores around the
country. The latest information can also be accessed
online at www.visitorguidetothailand.com
6. 1188 Thailand YellowPages
1188 Thailand YellowPages is a service center
with well trained staff ready to assist you in searching
for information on products and services with the
telephone numbers of the businesses, shops, restaurants,
tourist places together with information on the travel
routes, governmental agencies, emergency numbers
and personal numbers all over Thailand with more
than 6 million numbers listed in the directory. It also
provides latest daily headline and up-to-date
information such as news, horoscope, live scores,
gold prices, oil prices, schedules of product fairs, One
Tambon One Product (OTOP) fairs, summary of the
latest movies, movie and music charts, lottery results,
etc. Other additional services provided by 1188
Thailand YellowPages are:-
• Services in English for foreigners and in local
dialects for Thais from different parts of the
country.
• Transfer calls from AIS transponders to the
desired numbers.
• SMS on your behalf in English and Thai
message typing and sending.
• Fax on demand services.
• Download ring tones, logos, images and games.
These are all to provide the best services to
every need of customers and to ensure they are
comfortable in using the services.
7. Website www.yellowpages.co.th – easy access
to “Online YellowPages” from anywhere in the world
Website www.yellowpages.co.th is the complete
directory with the names of the businesses from the
Thailand YellowPages and Thailand Corporate Pages.
You can search and access the information in both
Thai and English. Alternatively, if you choose the
option “Book View”, the page will show the exact
location of the information in the Thailand YellowPages
which helps in getting the name and picture of the
advertisers clearly, as if you were opening the book for
real. It has been found that more than 90% of the users
who click on the www.yellowpages.co.th are satisfied
with the information that they received. Help you to get
what you need, anytime, anywhere, be it in Thailand
or other parts of the world, 24 hours for 365 days.
8. Get & 2Load (www.2Get2Load.com)
Get & 2Load, In the present world, the media
channels have been expanding tremendously and in order
61
CS LOXINFO

High Quality Internet
to serve the customer needs, the Audiotex service of
“2Get” 1900 222 xxx has been launched. It is one of
the services launched to make you more comfortable.
No matter what phone you use be it landline or cell
phone, just press the numbers as per the menu and
you will get the information or entertainment 24 hours
daily. This trendy service provides with you daily
horoscopes, jokes, latest Box Office or music charts,
competitions, download songs, latest scores and results
of various sports or even conversation with new friends,
etc. All in all to serve you everything of what you need,
and for the people who want to improve their
lifestyle. Providing entertainment information to you,
“2Load” is ready to send information you need
through SMS unlimited, be it daily horoscopes, jokes,
summary of the TV series and recommendation for
the latest movies every week.
9. Precision Marketing
Precision Marketing, To keep up with the ever
changing trend of present world competition,
precision marketing helps you to reach your target
audience even more directly while helping you
managing your marketing budget effectively. It is
flexible and the result can be determined accurately.
TMC provides the services in the following 4 ways:-
• MAILING LISTS: Providing the latest
database of the names covering a wide rage
of different target groups, it helps you save
time and increase profit for the business.
• TELEMARKETING SERVICES: Create
business opportunities via telemarketing. The
well trained staff with professional skills will
contact the clients and follow up with them
on the behalf of your company.
• DATABASE MANAGEMENT &
MAINTENANCE: Service of managing and
maintaining the latest database to cope with
every change in the market, helping you in
avoiding losses and opportunity loss.
• LETTER SHOPPING SERVICE: Integrated
services of mailing the documents to the
clients from database preparation; printing out
and tag the names; arranging the mailing
services and summarizing by well experienced
staff, helping you save time.
10. Outsource Call Center
Outsource Call Center, Using Call Center has
been increasingly considered as one of the most
productive marketing tools in the present marketing
world. Therefore to increase your marketing potential
to a higher level without huge investment, TMC
provide Outsource Call Center which helps in
opening more sales channels and provides better
services to the clients. It covers both the inbound
calls i.e. intercept clients’ calls for information of the
clients, take orders, and register, and outbound calls
i.e. calling the clients and informing them of their
privileges, offering sale, and inviting the target group
to join the campaign, etc.
11. New Services for meaningful entertainment
Interactive Voice Record (IVR), TMC has
developed Interactive Voice Record (IVR) system
jointly with Advance Info Service PLC. to provide
the narration in various museums, also known as
Museum Audio Guide, in Thai, English, Japanese, or
Chinese, viewed as suitable, to promote the tourist
places and equipped them with services of an
international quality. Started with Thai Human
Imagery Museum, the service has been recently
expanded to other museums such as Panorama
Museum of Bangkok, Thai Press Museum, King
Prajadhipok Museum, and The Erawan Museum.
The current trend in advertising industry
The market of advertising industry from January
to October 2007 has increased by 1.52%. The media
sector’s advertising has decreased by 10.80%. By
category, the advertising of alcoholic products
decreased by 41.90%; skin care products registered
highest growth at 15.3%, followed by real estate
sector which registered growth at 7.10%. It is
forecasted that in 2007, the total advertising volume
is Baht 75,430 million with the television having the
highest share at 58.15%, the growth decreasing by
0.36%. The advertising in cinema halls will have the
highest growth at 145.96% and advertising growth in
the malls stand at 99.58%. The growth of mobile
media, radio and the billboard will decrease at 3.22%,
4.41% and 3.84% respectively. As for the
publications such as magazines, the growth will
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CS LOXINFO

decrease at around 5.07% while the advertising in
newspapers will increase by 0.39%. Moreover it is
also estimated that the online advertising would be
expanding more than 40% from that of 2006* which
is based on the fact that the internet users has
increased by 15% from the last year.
*data provided ADMAX and Thailand Direct Marketing
Association (TDMA)
Marketing activities and situation of the
competition
In a highly competitive market, the advertising
media with high return on investment is the most
favored one and can prolong a continuous growth.
YellowPages is an business media that assists in
efficient business transactions. Not only is it the
closest to the user’s hand when the purchasing need
exists, but it is also a sole business media that covers
a maximum range of product and service categories.
It also provides clear buying and selling information
as well. Moreover it is distributed for free to the
users at the home, and business and industrial
premises.
Besides, the readiness for the investment in the
infrastructure system and solid development in TMC
allows the integration of data to achieve the highest
benefit to the users so that they can access the data
conveniently and immediately whenever they want.
There are three other choices available i.e. service
center at 1188 Thailand YellowPages, the website
www.yellowpages.co.th, or by mobile phones.
Although the advertising has a little growth but if
quality be taken into account, Thailand YellowPages
is the advertising media that reaches the target group
of customers who are willing to buy the most. Taken
the aforementioned integration into account, this
explains why the company’s products and services
have been highly sought after, especially the Thailand
YellowPages with its integrated business information,
easily accessible at anytime and anywhere which is
worth the investment of advertisers. This can be
proven by how Thailand YellowPages has achieved
and maintained its market share at 80-90% against
its competitors for the past 20 years.
Business opportunities for the year 2008
As the leader in the integrated business media
industry, with useful database, and the determination
of continuous improvement, TMC believes in
potential and is ever ready to increase the exposure of
the goods and services, with the product and service
developments to be the new source of income in the
future, especially to improve the online system to be
increasingly ever ready to fulfill the needs of the
customers in the daily life through computers and
mobile phones, including the development of
handbooks which gather more information in various
industries with high potential, by following the below
strategies:-
1) Benefiting from the strong brand identity of
the distinguished image of YellowPages to
expand its services to the new consumer
group such as various important cities in
Thailand. For example Nonthaburi, Samut
Prakan, and Pathum Thani YellowPages have
been launched and the expansion to other
areas with high potential.
2) Integrating TMC infrastructure and system and
combining them with the strong alliances in
order to develop the formats of information
and content. The presentation must also be
reached via more channels, especially by
internet and cell phones for more convenience
of the users and to allow more benefits to the
advertisers.
3) Expand the user base by developing products
that serve the customer needs and are suitable
for the purchasing power of each group.
4) Increase income through the call center at
1188 and Audiotex service in the form of
one-stop service to build convenience and
familiarity.
TMC will keep looking for opportunities to
make use of its expertise and the database which is
the core asset that built its business from the past
along with the ever improving technology and change
of taste for the new media services that are growing.
This is to achieve the potentiality and the highest
satisfaction of both the users and the advertisers.
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AD Venture Company Limited
AD Venture Company Limited (ADV) is the
company that CSL holds 99.99% of its stake. It has
registered and paid-up capital of Baht 171.97
million. Its major business is as a holding company,
having sole investment in Shineedotcom Company
Limited (SHINEE). Therefore, the business
performance of ADV will mainly come from the
business performance of SHINEE, wherein ADV
holds 99.99%.
SHINEE has registered and paid-up capital of
Baht 80 million. It has 2 subsidiaries, which are
Hunsa Dot Com Co., Ltd. (HUNSA) and Sodamag
Corp Co., Ltd. (SODAMAG) These major businesses
are providing information and entertainment content
through mobile phones, and developing applications
to be used on Internet.
Currently, SODAMAG does not run any
business and is in the process of closing down.
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Shineedotcom Company Limited
This company is a content aggregator from
various types of content owners, both providing news
and entertainment information, offered to the market
through mobile phones under the name “Shinee.com”.
This is called a Mobile Content Provider. It also
provides content through a portal website, under the
name “Hunsa.com”.
Products and Services
SHINEE is a content provider split into two
kinds of business.
1. Mobile Content Business
Shineedotcom Co., Ltd. provides mobile content
service under two brand names, SHINEE and
SODAMAG, via all mobile phone networks; AIS,
DTAC, and True Move. Audiotex systems can also
obtain content, which includes all fixed line ordinary
telephone system can also access SHINEE’s service.
The target age group is 15 - 50 years old. Customers
can access these services by one of two choices.
1.1 Download services to store in a mobile
phone via mobile phone networks, by dialing
the service code through an IVR system. For
example, press *489958355812216 for AIS, or press
*1919958355812216 for DTAC, or download via
SMS by dialing 58355812216 and send to 7899 for
Truemove, or go to wapsite http://wap.shinee.com to
immediately download the content via wap with no
network camp limitation. Customers can also
download content via a linked menu in the wap portal
of the mobile phone network. After downloading,
they can pay for service charges through the mobile
phone network that they are using. The names of
these service types are as follows:-
• Shinee Ringtone: provides four types of
ringtone; Monophonic Ringtone, Polyphonic
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High Quality Internet
Ringtone, Truetone Ringtone and Full Song
Ringtone. We aggregated these tones from
Thai and international music allies, in response
to customers’ needs.
• Shinee Java game: provides games on
mobile phones that can be played by pressing
buttons to control directions. We have
brought together a range of games from all
over the world, so there are various categories
to serve customers’ demands e.g. action,
adventure, sport, etc.
• Shinee Wallpaper & VDO Clips: provides
wallpapers with types of drawings, cartoons
and photo pictures that customers can
download and save as a screensaver for their
mobile phone. While VDO Clips service
allows VDO downloads of approx. 1-minute
duration for viewing and saving on mobile
phones. Selections include cartoons, humour
and movie or series previews.
• Shinee News: provides an updated news
service from many news allies e.g. TNA
(MCOT) and Channel 7. The service is
provided through SMS or wap accessing.
Customers can subscribe through IVR, SMS
or wap, and pay monthly service charges
through their network operators. After that,
the system will send updated news, 5-8
reports per day, to customers via SMS, or
they can read it from wap. The customers can
cancel the service at anytime through IVR,
SMS or wap.
• Shinee Info Entertain: provides star gossip,
updated new movie reports and music from
famous sources, from the company’s allies
e.g. MAYA CHANEL newspaper. The
service is provided through SMS or wap that
customers can subscribe to through IVR,
SMS or wap, and pay a monthly service
charge through their network operators. After
that, the system will send them updated news,
5-8 reports per day, via SMS, or they can
read it from wap. Customers can cancel the
service at anytime through IVR, SMS or wap.
• Shinee Horoscope: is a horoscope service by
the famous fortuneteller “Kengkart Jongjaipra”.
He is a partner of the Company. The service
is provided through SMS or wap that allows
customers to download occasionally, or
subscribe through IVR, SMS or wap, and pay
charges per download or monthly through
their network operators. After that, the system
will send customers their horoscopes, by their
given star signs, via SMS, 5-8 times per day,
or they can read it from wap. The customers
can cancel the service anytime through IVR,
SMS or wap.
1.2 Listen to services via Audiotex Customers
can access this service by dialing the telephone
number shown on the ad, such as 1900-222-394 for
a zodiac horoscope service, and then follow the
menu, listening to the service details.
2. Website Business
Shineedotcom Co., Ltd. provides a portal web
service under the name www.hunsa.com, which
targets 10 - 30 year old people. The provided services
are as follows:-
• News and entertainment: provides updated
news and entertainment that were aggregated
from many sources e.g. websites, newspapers
and Hunsa’s news team. This is a free of
charge service.
• Web board: or Chat room, for posting
opinions on miscellaneous topics. This is a
free of charge service.
• Hubbie: provides a service to create ones’
own cartoon character, an Avatar, to use
among chatting lovers. They use cartoon
characters to represent themselves. Customers
can create the cartoon character for free, but
they can buy additional clothes by purchasing
and paying by cash card.
• Online horoscope: provides a horoscope
service, through the Hunsa website, by
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popular fortuneteller team. This service uses
the Hone Fun Thong teamwork. Customers
can use this service by sending their birthday
and questions to the Hunsa website. Once the
payment via cash card is made, the staff will
send the information to the customers by
Hunsa’s website.
• Advertisement: provides a banner ad on
effective Hunsa websites with over 100,000
visitors per day. The ad pricing is varied,
with respect to the banners position.
Customers of this service are companies and
shops who would like to promote their
products or services to Hunsa’s visitors by
using Hunsa’s banners.
• Web Development: by the experts and
experienced teams. Customers of this service are
companies and shops that would like to own
websites to promote their products or services.
Industry situation and competition
Due to the mobile content business’ growth
trend in 2004, about 200 local and international
content providers entered into the market. There was
intense competition in both pricing and marketing.
After that, there was cost restructuring by the
operators and content owners. Many providers gave
up and left the market, because they could not
manage their costs. However, with the effective
management and marketing strategy of SHINEE, it
could strongly retain its customer base by the
following methods:-
• Maintaining a high service standard and not
deceiving customers, unlike others who
aggressively did so during 2005-2006, which
resulted in the increase in confidence of our
customers in choosing the services of our
company.
• Manage marketing costs by focusing on using
effective media and directly targetting groups.
• Focusing on services that could fulfill the
customer’s life style and enhancing satisfaction
by offering monthly and buffet subscription
styles to match customers’ monthly budgets.
• Having a strong partner within Shin
Corporation Group, expanding distribution
channels and running marketing activities,
e.g., communication via website, Mobile Life,
One 2 Call card, etc.
Marketing Strategy
SHINEE strives to provide services with speed
and accuracy at a fair price, with after sales service
for an increasing customer base. SHINEE does not
have policies to deceive in their marketing or take
advantage of our customers. The marketing strategies
of SHINEE are:-
1. Focus on quality and service
SHINEE has a policy about the freshness of
content provided to the customer; the content has to
be up to date, in trend, and have good variety.
Thereby SHINEE has a policy to aggregate content
from every source, to fulfill the complete needs of
customers as a one-stop service at SHINEE.
Additionally, SHINEE pays attention to
reviewing the quality of all downloaded services,
thereby acting quickly and correctly, delivering good
service to our customers.
2. After Sales Service
The primary critical factor of the mobile content
providing business is the Customer Service that can
act quickly and also provide customers a dedicated
service for information and solutions. For this reason,
SHINEE focuses on its customer service by having a
call center unit to effectively serve and respond to
queries.
3. Continual development of new services
SHINEE has developed various kinds of service
to fulfill the needs and tastes of our target customers
by mainly focusing on their behaviors. A Buffet
service at an economical price will be offered to
customers who love economy downloading. Pay per
download with no committed conditions will be
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offered to trendy customers. Moreover, new or in
trend content will be offered in time e.g. background
music, SMS voting service in major events such as
Miss Thailand Universe Contest, etc.
4. Focus marketing
SHINEE focuses marketing on download lovers,
by using a database, which analyzes and classifies
customer’s behavior, thereby correct marketing and
sales promotions could reach intended target groups,
directly and efficiently.
Distribution Channels
1. Wap Service of mobile phone users e.g.
Mobile life and SHINEE Wapsite
2. www.shinee.com and www.hunsa.com
3. AIS call center No. 1175 and SHINEE call
center
4. Mobile phones by using service code from
advertisements
5. Advertising space on www.hunsa.com
Business Opportunity
With the fast, continual, and high growth of mobile
phone business, telecommunication liberalization, fast
moving technological changes, and fast reduction of
mobile phone prices, resulted in the growing
numbers of mobile phone subscribers. SHINEE also
foresees the long positive future of the mobile
content business. Therefore, more new services will
be developed in 2008.
For the website business, the
competition of Internet service providers
resulted in lower service charges, but
offering a higher quality, as well as the
continual growth of internet usage.
Therefore, in 2008, new services in the
segment of E Entertainment commerce will
be developed because of the growing
opportunities in E-commerce businesses that
are foreseen.
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Watta Classified Company Limited
Watta Classified Company Limited (“WATTA”)
provides sub-advertisement and classified services in
its own publications for customers locally and
internationally. WATTA also publishes and sells
various publications from daily and weekly
newspapers to weekly, monthly, bi-monthly and
yearly magazines to pocket books and others.
Products and services
Products and services of WATTA can be grouped
into 2 main types of business as follows:-
1. Sub-advertisement and classified services
in publication media
WATTA provides various advertising placement
services via its sales team both direct sales and telesales,
to customers locally and internationally.
Customers either a juristic person or an individual
person (household) can place the classified ads for
PR and advertising their products or services, for
consumption or for job classified and etc. For
advertising placement services in various print media
of WATTA, such print media include newspapers,
magazines-weekly, monthly, bi-monthly and yearly,
pocket books and others.
2. Publishing and selling books
In order to facilitate sub-advertisement or
classified services in publishing media for WATTA’s
customer group and readers that want to search for
information about products or services that respond to
their needs, the Company has published and sold
various publications to satisfy such customers
demands. WATTA produces quality print media under
various names, which can be categorized as follows:-
2.1 Newspapers include
• World Today (Lok-Wan-Nee) is a daily
newspaper that has contents about politics,
economics, social, entertainment, health,
various useful tips and classified so that the
readers can search for information on products
and services that match their needs. World
Today is ideal for the white collar group
whose daily activities are varied. It is available
everyday in the market.
• Fineday (Wan-Suk) is a weekly newspaper
that has the same contents as the daily World
Today. As a Friday issue, it adds a special
section on weekend activities. Fineday is
ideal for the white collar group whose daily
activities and lifestyles are varied. It is
available every Friday in the market.
2.2 Weekly Magazines include
• Car Magazines Car Today (Rot-Wan-Nee)
presents information on buying-selling used
and new cars and updated news in the
automobile industry, including various
useful tips about cars.
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High Quality Internet
• Job Magazines
Job Today (Ngaan-Wan-Nee), Find Job
Find Easy (Ha-Ngaan-Ha-Ngai), Smart
Job and Job Seven collect information on
job vacancies and job hunting, including
articles and updated news that help develop
capabilities of job applicants.
• Real Estate Magazines
Home Today (Ar-Karn-Tee-Din) presents
information on buying-selling homes,
building and land, including useful tips and
new developments in real estate business.
• Education Magazines
Education Today (Karn-Suk-Sa-Wan-Nee)
provides information on education or
learning institutions, both government and
private enterprises from both local and
aboard, for educations, training, personal
development and scholarships both local
and international.
2.3 Monthly Magazines include
• Real Estate Magazines
Open House gathers information on new
home and condominium projects, useful
tips for home and garden decoration and
answers to a range of questions on home
maintenance and repair.
2.4 Bi-Monthly Magazines include
• Car Magazines
Red Plate (Pai-Dang) presents information
on new car models, interview articles on
experienced users and useful tips on car
and car decoration.
2.5 Yearly Magazines include
• Gift and Premium Magazines
Gift Ideas contains information on sources of
production or places to order, retail-wholesale
stores or sell and import agents of gift,
premium and collectible stuffs as well as
interview articles on well-known people or
various useful tips.
2.6 Pocket Books include
• Educational Group e.g. Thoon-Rian-Free-
Mee-Thua-Lok, EXITBOOK and etc.
• Information and Knowledge Group e.g. The
Wonders of the World Architecture, Luuk-
Chang-Thaam and etc.
• Children Group e.g. Nain-Payoom-Joom-
Yung, Ha-Thamma-Phra-Payoom and etc.
• Political Group e.g. Maeo-Mai-Mo, Paak-
Sa-Mak, Debate-Garn-Meuang-Reuang-
Seen-La-Tham? and etc.
2.7 Other Books include
• Magazines that are published upon market
demand.
Procurement
of Products or Services
WATTA has a high reputation for flexibility in
managing its production and distribution as a
classified advertising service provider in publishing
media as well as a media publisher and distributor.
WATTA controls the quality of works from the
production of advertisement designed by high
experience teamwork and approved by customer to
ensure that it is accurate and meets customer’s
purpose before sending off to the printing house.
WATTA needs to make sure that such printing house
has a standard production process that it commits to
and is able to complete the work within specified
time period. WATTA has also arranged teamwork to
distribute products to its nationwide sell agents to
display on the bookstand every day at dawn,
including home delivery to its members.
Industry and Competition
The overall growth of the advertising media
industry has been on a decreasing trend. Although
publishing media was still increasing given high
spending from real estate business during the end of
2007 i.e. about 10 city condominiums launched their
projects at the same period. Trends for 2008, it are
expected with the industry growing significantly,
mainly from political factors. Printing business is
expected to grow by 12% compared to 10% growth
last year. Even though several businesses had
experienced problems as a result of poor economics
amid domestic political unrest which in turn
weakened consumer confidence and buying power,
such problems had no impact on printing industry’s
growth. This was mainly due to the fact that during
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the past year was the period to celebrate His Majesty
the King 60 years on the throne yielding positive
impact on the industry growth. During the auspicious
2007 to celebrate His Majesty the King of Thailand
80th birthday, the government had announced this
event as the national agenda, which was expected to
use significant amount of budget from both
government and private agencies especially in
producing additional print media.
Marketing Strategy
WATTA has placed a great emphasis on
providing sub-advertisement and classified services.
Advertisements that are placed must come from a
reliable source and safe for the society. Information
or news that is published in all of WATTA’s
publishing media must be fresh, accurate, trustworthy
and up to date. WATTA focuses on providing advice
for pre and post sale for the highest satisfaction of its
customers from various media groups such as
education, real estate, automobile and newspapers. At
the same time, in order to broaden buying-selling
opportunities, WATTA has been continuously
developing the design to add new and more variety of
services that can always match customers’ needs.
Sales and Distribution Channels
Sub-Advertisement or Classified Services:
WATTA provides sub-advertisement or classified
services in the publishing media of WATTA for both
local and foreign customers. WATTA services their
customers through the following channels:-
1. Direct Sales: This is the main distribution
channel. WATTA has sales teams that can
service and give advice to customers to ensure
that the advertisements are correctly responding
to their needs and placed in the right media
of WATTA that matches the target reader
group of such customers.
2. Phones or Mobile Phones: Customer can
place a classified ad via 1900 Service or
sending message by SMS or MMS. In
addition, there is a service to download
advertising information for customers.
Produce and Sale of Publishing Media:
WATTA sells the publishing media of WATTA to
nationwide customers through the following channels:-
1. Nationwide Sale Distributors which can be
categorized into 3 types as follows:-
1.1 Modern Trades e.g. SE-ED Book
Centers, B2S, Prae Pittaya and etc.
1.2 Convenience stores e.g. Seven Eleven,
Book Smile and etc.
1.3 General bookstands
2. Marketing Activities e.g. organize job and
education fairs, open booths and participate
in various events e.g. Book Fair, Architect
Fair, Motor Expo and etc.
3. Memberships i.e. apply for a membership of
daily and weekly newspapers, weekly and
monthly magazines.
Business Opportunities
Given consumer behavior who want to receive
various kinds of new information coupled with
technology that plays an important role i.e. almost
turning the society into a digital era, WATTA has
realized the importance of information that will bring
in an opportunity to respond to such needs. A large
number of information sources are systematically kept
and ready to send out to consumers through digital
media. The speed of technology will be the key
advantage in accessing and exploiting more opportunity
than others. As such, WATTA is the media that
constantly update, matches every need, accesses every
gender and age, covers daily life for the entire 24
hours. WATTA is preparing to become a content
provider that provides information and news, especially
such contents that WATTA is very good at, and
present to the right media. Moreover, WATTA has
taken the benefit of leading brands’ popularity to
make the decision easy for the business owners of
products and services in placing the advertisements.
Hopefully, this will also make it convenient for
consumers to make the decision in buying products.
In the mean time, WATTA is ready to enter into
other types of media, particularly online media in
order to accommodate growing numbers of internet
users by joining forces with strategic partners within
and outside the group.
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Major Developments
CS LoxInfo Public Company Limited (the Company
or CSL), formerly known as CS Communications
Company Limited, was established on 20 July 1994
with its initial registered capital of Baht 10 million as a
joint venture of CAT Telecommunication Public
Company Limited (CAT) and Shin Satellite Public
Company Limited (SSA), with a holding percentage of
49% and 51%, respectively. The Company was granted
a concession to provide television signal and internet
access via satellite for a period of 22 years from
9 August 1994 to 8 August 2016. Further, in 1997,
the Company was granted a concession from CAT to
provide commercial internet service access services via
landline and satellites for a period of 10 years ending
2007 under the name of “CS LoxInfo”. However, at
present, licenses to provide internet service will be
under authority of the National Telecommunications
Commission (NTC). Moreover, the Company invested
in subsidiary companies which provide other services,
such as content, games, printing and publishing
YellowPages in both online and off line, Audiotex
via phone number 1900 and 1188, mobile content
service, web portal service-hunsa.com and print classified
directories business.
In 2003, the Company changed its status from a
limited company to a public limited company and listed
on the Stock Exchange of Thailand on April 2004. The
Company’s registered share capital as at 31 December
2007 comprised 661 ordinary shares of Baht 1 each
and 627 million ordinary shares were fully paid-up. As
at 24 August 2007, the Company’s major shareholders
are Shin Broadband Internet (Thailand) Company
Limited (SBI), Singapore Telecommunication Limited
(SingTel) and Phatra Securities Public Company
Limited with a shareholding of 40% 13% and 8%,
respectively.
The Company, together with Loxley Information
Service Company Limited were granted a 1-year
period license from National Telecommunications
Commission (NTC) to operate internet access services
from 8 September 2007 to 7 September 2008 and 29
June 2007 to 28 June 2008. Moreover, The Company
also received Type II IIG license and Type III license
from NTC to provide internet access services for 5
years and 15 years from 26 April 2007 to 25 April
2012 and from 20 December 2007 to 19 December
2022, respectively. Under NTC’s conditions, if the
authorized licensee is not significantly in violation of
the conditions as specified in the license, NTC will
renew the license immediately.
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The Company’s Progress
and Development
March 2003
The Company acquired 24.5 million shares of Loxley Information Services Company
Limited (“LoxServe”) at Baht 10 each (representing a 94.19% shareholding) from Point
Asia Dot Com (Thailand) Company Limited (“PA”) by issuing 24.5 million additional
ordinary shares at Baht 10 each to PA and a group of shareholders of PA.
March 2004
The Company acquired TMC from SHIN and SingTel at the total price of Baht 507
million, which represents a shareholding of 63.25% of TMC’s share capital. TMC has
been granted rights in publishing and advertising of telephone directories from TOT
Corporation Public Company Limited (TOT). In addition, TOT had the right to sell its
shares of TMC to the Company at a price not lower than the selling price of SHIN and
SingTel within 1 year as from 12 February 2004.
April 2004
The Company registered additional issued and paid-up share capital with the
Ministry of Commerce from 500 million shares at a par value of Baht 1 each to 625
million shares at par value of Baht 1 each. The additional ordinary shares were issued and
offered to the public and entered into registration in the Securities and Exchange of
Thailand on 8 April 2004 with an IPO price of Baht 9 each.
September 2004
TMC entered into an Audiotex agreement with TOT for a period of 15 years to
provide information, news and entertainment programs via telephone and fax number 1900
and 1188, 24 hours per day, using operators. TMC started provide 1900 service and 1188
service on November 2004 and December 2004, respectively.
June 2005
The Company further acquired ordinary shares and preferred shares of Teleinfo
Media Public Company Limited (TMC) (previously named Teleinfo Media Company
Limited) for the total of 26 million shares at Baht 25 per share (equivalent to 36.75%
shareholding) from TOT Public Company Limited (previously named TOT Corporation
Public Company Limited) with the payment conditions:
• The first payment of Baht 20 per share paid by June 29, 2005.
• The second payment of Baht 5 per share paid within 30 days after auditor
(approved by SEC), certified the financial statement of TMC for the accounting
year period ended 2007 and the aggregated revenues of TMC for the accounting
year period 2006 and 2007 is equal to or higher than Baht 2,000 million.
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August 2005
TMC’s extraordinary general shareholder meeting No. 2/2005 approved:-
• The conversion of TMC’s status from a limited company into a public company
limited and change the name to Teleinfo Media Public Company Limited.
• TMC decreased its capital by a total of Baht 521 million from the registered
capital of Baht 694 million to Baht 174 million by way of reducing the number of
ordinary shares and preferred shares at par value per share of Baht 10 from 40
million shares and 12 million shares, respectively in order to eliminate its
remaining retained loss and repay the residual of the decreased portion to
shareholders whose capital was reduced.
April 2006
The Company acquired 28 million ordinary shares of AD Venture Company Limited
(ADV), a holding company which held 70% stakes in Shinee Dot Com (“Shinee”) from
SHIN, equivalent to 51% of share capital of ADV at the total price of Baht 18 million.
July 2006
The Company acquired 5 million ordinary shares of ADV, equivalent to 9.09% of
share capital of ADV at the total price of Baht 3.2 million from Mitsubishi Corporation
and Mitsubishi Company (Thailand) Limited. After this acquisition, the Company held
60.09% of the share capital of ADV.
August 2006
The Board of Directors’ meeting of the Company No. 6/2006 passed a resolution to
approve the interim dividend of Baht 0.60 per share totaling Baht 375 million or 333%
dividend payout as compared to 2006 half-year operating results. This high dividend
payment consisted of half-year normal performance dividend Baht 0.18 per share plus one
time special dividend which resulted from the adoption of Thai Accounting Standard No.
56: “Accounting for Income Taxes”.
September 2006
The Company acquired additional 22 million ordinary shares of ADV, equivalent to
39.91% of share capital of ADV at the total price of Baht 14.05 million from SHIN. After
this acquisition, the Company held 99.99% of the share capital of ADV.
February 2007
The Company acquired additional 0.5 million ordinary shares in LoxServe from CAT
and its employees at Baht 12.90 per share, representing a total price of Baht 6.2 million.
After this acquisition, the Company held 96.05% of the share capital of LoxServe.
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April 2007
• The 2007 general shareholders’ meeting of the Company passed a resolution to
approve the transfer of the legal reserve fund of Baht 46 million and the reserve
fund in excess of the par value of Baht 574 million to offset the Company’s
accumulated losses from changing the accounting method in recording investments
• The Company acquired 0.1 million common shares of Watta Classified Company
Limited (“WATTA”), a Print Classifies Directories Business, equivalent to 60% of
share capital of WATTA at the total price of Baht 88 million.
May 2007
The Company acquired additional 1 million ordinary shares in LoxServe from Point
Asia Dot Com (Thailand) Company Limited at Baht 2.02 per share, representing a total
price of Baht 2 million. After this acquisition, the Company held 99.86% of the share
capital of LoxServe.
August 2007
• The Board of Directors’ meeting of the Company No. 7/2007 passed a resolution
to approve the shares repurchase program for financial management purpose
(Treasury Stock Program) with a maximum number of shares repurchased up to
51.7 million shares or equal to not more than 8.3% of total paid-up capital of the
Company at the maximum amount not exceeding Baht 225 million in order to
manage the Company’s excess liquidity and increase the return on equity (ROE).
The repurchase period was started on 27 August 2007. However, As of November
22, 2007 the Company could achieve the number of share repurchased of the
Project under The Board of Directors’ resolution.
• ADV and SHINEE registered reduced issued and paid-up share capital with the
Ministry of Commerce from 55 million shares and 19 million shares (par value of
Baht 10 each), respectively to 17 million shares and 8 million shares (par value of
Baht 10 each), respectively.
January 2008
ADV which is the subsidiary of the Company acquired additional 2.4 million
common shares of SHINEE, equivalent to 30% of share capital of SHINEE at the total
price of Baht 15.1 million from Mitsui & Co.,Ltd (Mitsui). After this acquisition, ADV
held 99.99% of the share capital of SHINEE.
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Risk Factors
Industry Risk
• Risk arising out of the liberalization of the
telecommunication industry
Risk arising out of the liberalization of the
telecommunication industry may have an impact on the
internet service business, which accounts for about
60% of the Company‘s total revenues. The National
Telecommunication Commission (NTC) started to
issue licenses to operate the telecommunication
business for operators with their own network (Type
II & Type III) in 2006 resulting in an increase in the
number of internet users and in turn competition,
which will have an impact on the Company’s
operation going forward in terms of both revenues
and market share. Therefore, in order to mitigate such
risk arising out of industry liberalization, the
Company has adapted its strategy to focus on
providing better quality and services for various types
of customers, particularly for corporate clients whom
the Company has confidence in their potential for
high consumption and constant growth rate. In
addition, the Company has also applied for a license
to operate the telecommunication business in various
types to rely on other business operators as little as
possible, which is deemed as a way to control the
quality of services.
• Risk arising out of the advertising industry’s growth
Risk arising out of the advertising industry’s
growth may have an impact on TMC and WATTA,
which contributes about 35% of the Group’s total
revenues. As the main source of revenue of the
publishing business derives from selling advertising,
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during economic slowdown, which undermines
consumer confidence for spending and investment, the
result will be a decline in the growth of the
advertising industry. Fully aware of such effect, TMC
and WATTA have thus developed new publishing
products to expand their customer base, support
business growth and minimize the impact from the
advertising industry risk which may be stagnant from
time to time.
• Risk arising out of the change in customer
behavior on add-on services for mobile phones
Risk arising out of the change in customer
behavior toward add-on services for mobile phone
may have an impact on SHINEE, which contributes
about 5% of the Group’s total revenues. The main
target customers of SHINEE are the group of people
who not only admire technology and fashion products
but also constantly change their preferences. Since
mobile phone users nowadays can send-receive
pictures or songs from computer directly to mobile
phone, SHINEE may be at risk from a change in
service behavior of customers who are capable of
creating their own contents and entertainment or want
new information or services that SHINEE does not
have. Given such risk, SHINEE has thus placed a
great emphasis on improving services offering more
variety on a continuous basis by setting up a unit
whose duty is to conduct a regular survey to assess
customer needs so that SHINEE can develop products
and services that match the change in customer
behavior particularly on the use of services in the
future.
Competition Risk
• Risk arising out of intense competition in the
internet service business
As a result of the liberalization of the
telecommunication industry,the internet service
business has encountered greater competition,
particularly in the consumer market. During the past
year, many competitors have used pricing strategies or
marketing activities heavily and continually to attract
customers and at the same time expand market share.
The Company was pushed to pick up the pace in
adjusting itself for survival in such an industry
condition. Consequently, the Company has adapted its
strategy to focus on particularly marketing, especially
for corporate clients. The Company’s stance on this
regard is to provide quality of services and not
compete on price to avoid any impact from such a
condition on the Company’s performance.
Technological
Change Risk
• Risk arising out of the internet technology change
At present, internet technology has been changing
constantly and rapidly. In particular this has occurred
for the speed of hi-speed internet connections, a
service that is gaining its popularity, and an ongoing
development of other types of connection technology
e.g. WiMax, WiBro (Wireless Broadband) or Mobile
WiMax. Mobile WiMax is a mobile communication
system which is at the same standard level as WiMax
that enables the users to connect to the internet with
mobile devices anytime anywhere even when traveling.
In such case, a technology of Voice over Internet Protocal
77
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(VoIP) would save a lot of money from call charges,
especially long distance calls both domestically and
internationally. In the event that the Company cannot
develop new service types that are corresponding to the
change in technology, it may be at a disadvantage
against its competitors in terms of services. Therefore,
in order to minimize such risk, the Company plans to
continue developing and improving its service types
that are able to respond to consumer needs. However,
the Company’s investment policy in technology must
be in line with short-term and medium-term needs
so that it allows greater flexibility in search of better
technology and lower cost to improve or develop new
services going forward. The Company currently holds
a license to operate WiFi internet services.
Human Resources Risk
• Risk from being dependent upon key personnel
The Company’s business is characterized as a
specific business that needs to rely on knowledge,
capability, skill and experience of key personnel. In
case the Company loses key management and
employees, it may have an impact on the Company’s
operations going forward. Nonetheless, the Company
has set a policy that gives a importance to human
resources by setting aside a budget for training and
development of employees at all levels. At the same
time, the Company places a great emphasis on
building corporate culture as well as improving
compensation, working environment, and incentive
schemes to properly attract employees.
In addition, the Company has issued and offered
warrants aiming to boost its employees’ performance,
i.e. to work hard to create maximum value for the
Company, and retain them to work for the Company
in the long term.
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Related Party Transactions
In 2006 and 2007, the Company and its subsidiaries entered into a number of transactions with related parties that
may have conflicts of interest with the Company and its subsidiaries. These connected transactions arose in the ordinary
course of doing business and according to normal trade conditions. Significant related transactions between the Company,
its subsidiaries, and related companies are as follows:-
Related Party Transactions that may lead to Conflicts of Interest
Summary of Transactions
Transaction Description Amount Dec 31,2006 (Million Baht) Amount Dec 31,2007 (Million Baht)
Shin
Corporation
Group
Shin Corporation Group
Related Company
Shin Satellite Public
Co., Ltd. (SSA)
Telecommunication
satellite services
operator
Relationship
SHIN holds 41.28%
shares in this company
with shared directors
Loxley
Group
SingTel
Group
- Sales and services
income
- Other income
- Expenses
- Trade accounts
receivable and
others
- Trade accounts
payable and
others
Total
Amount
(Million Baht)
Shin
Corporation
Group
Dec 31, 2006 Dec 31, 2007
Loxley
Group
SingTel
Group
Total sales and services income 235.35 8.75 3.34 247.44 203.14 6.75 2.57 212.46
Total other income 0.78 - - 0.78 0.72 - - 0.72
Total expenses 216.62 7.78 7.16 231.56 239.38 7.12 2.50 249.00
Total trade accounts receivable
and others 62.83 4.41 1.42 68.66 43.81 0.60 0.84 45.25
Total trade accounts payable
and others 36.38 2.28 0.81 39.47 37.79 0.54 - 38.33
Total others current asset 8.34 - - 8.34 0.71 - - 0.71
Total other current liability - - - - 12.00 - - 12.00
Description
25.04
0.75
48.52
26.42
7.93
19.95
0.68
55.05
17.49
6.57
Reasons
Total
The Company rented transponders on
Thaicom satellites, which is the only
operator in Thailand.
- Revenue from uplink, internet leased
line services charges and Brochure
advertising IPSTAR
- Revenues from Broadband IP
Transmission Commission
- IPSTAR technical services charges
- Accounts receivable for the uplink and
internet leased line services charges
- Accounts payable for IPSTAR
technical services charges
79 CS LOXINFO

Related Company
Shin Broadband Internet
(Thailand) Co., Ltd.
(SBI)
Internet related services
provider; the website,
server co-location
Advanced Info Services
Plc. (AIS)
Mobile phone operator
Relationship
The major
shareholder of
the Company at
39.89%. SSA
holds 99.99%
shares in this
company
SHIN holds
42.72% shares in
this company with
shared directors
Description
- Sales and
services income
- Expenses
- Trade accounts
receivable and
others
- Trade accounts
payable and others
- Sales and
services income
- Expenses
- Trade accounts
receivable
and others
- Trade accounts
payable and others
Amount
(Million Baht)
Dec 31, 2006 Dec 31, 2007
18.17
15.36
2.54
6.56
167.96
4.43
31.08
0.35
1.91
0.73
1.60
0.02
169.02
6.04
22.73
2.30
Reasons
The transactions were for
purchases and sales IPSTAR.
- Revenue from monthly internet
services charges and selling
IPSTAR equipment
- Cost of IPSTAR equipment
- Accounts receivable for monthly
internet services charges
- Accounts payable for IPSTAR
equipment
The Company used mobile phone
servicess from AIS.
- Revenue from monthly internet
and revenue sharing
- Airtime of mobile phone
- Accounts receivable for monthly
internet services charges
- Accounts payable for airtime of
mobile phone
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CS LOXINFO

Related Company
Advanced Datanetwork
Communication Co., Ltd.
(ADC)
Telephone line rental for
Internet connection
services provider
Matchbox Co., Ltd.
(SMB)
Advertising agency
Relationship
AIS holds 51%
shares in this
company with
shared directors
Shin holds 99.96%
shares in this
company with
shared director
Description
- Sales and
services income
- Other income
- Expenses
- Trade accounts
receivable and
others
- Trade accounts
payable and others
- Advance payment
We provide internet
services, and have
a monthly charge.
We use SMB as
our Advertising
agency.
- Sales and services
income
- Expenses
- Trade accounts
receivable and
others
- Trade accounts
payable and others
Amount
(Million Baht)
Dec 31, 2006 Dec 31, 2007
6.77
0.03
119.63
0.50
18.79
8.34
2.22
17.92
0.19
2.34
1.60
0.04
165.63
0.10
27.29
0.71
1.08
7.21
0.19
1.61
Reasons
The transactions were for the Company
to rent and connect telephone lines in
domestic and international link of
internet connection services.
- Revenue from monthly internet
services charges
- Other services charges
- Telephone lines and international
link for provisioning of internet
connection services
- Accounts receivable for monthly
internet services charges
- Accounts payable for telephone
lines and international link
- Services charges on the internet
network and fiber optic
SMB is a company in the Group that
we use it as our agent in having
advertisement in various media for
the customers to use our servicess.
The fees were at the market rate.
- Revenue from monthly internet
services charges
- Advertising expenses
- Accounts receivable for internet
services charges
- Accounts payable for advertising
expenses
81 CS LOXINFO

Related Company
Relationship
Other related companies The affiliates in
SHIN Group with
shared directors
Description
- Sales and
services income
- Expenses
- Trade accounts
receivable and
others
- Trade accounts
payable and
others
- Other current
liability
Amount
(Million Baht)
Dec 31, 2006 Dec 31, 2007
15.19
10.76
2.10
0.41
-
9.58
4.72
1.70
-
12.00
Reasons
- Revenue from monthly internet
services charges
- Expenses on computer
programs, services charges,
and others
- Accounts receivable for monthly
internet services charges
- Accounts payable for computer
programs, services charges,
and others
- Short-term loan
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Loxley Group
Related Company
Loxley Public Co., Ltd.
(Loxley)
Importer and distributor
of goods and technology
products
Other related companies
Relationship
Holding in the
Company with
shared directors
The affiliates
in the group
with shared
directors
Description
- Sales and
services income
- Expenses
- Trade accounts
receivable and
others
- Trade accounts
payable and
others
- Sales and
services income
- Expenses
- Trade accounts
receivable and
others
- Trade accounts
payable and
others
Amount
(Million Baht)
Dec 31, 2006 Dec 31, 2007
2.86
6.94
0.41
2.23
5.89
0.84
4.00
0.05
2.47
6.50
0.26
0.54
4.28
0.62
0.34
-
Reasons
The Company rent office spaces
at Sua Pah building.
- Revenue from monthly internet
services charges
- Rental space at Sua Pah building
- Accounts receivable for monthly
internet services charges
- Accounts payable for rental space
- Revenue from monthly internet
services charges
- Office rental and repair &
maintenance computer
- Accounts receivable for monthly
internet services charges
- Accounts payable for office rental
83 CS LOXINFO

Singapore Telecommunications Limited Group
Related Company
Other related companies
Relationship
SingTel own
13.41% of the
Company’s
share capital
Description
- Sales and services
income
- Expenses
- Trade accounts
receivable and
others
- Trade accounts
payable and
others
Amount
(Million Baht)
Dec 31, 2006 Dec 31, 2007
3.34
7.16
1.42
0.81
2.57
3.88
0.84
-
Reasons
The Company provides internet
servicess and has a monthly based
services charge. It also operates the
international link.
- Revenue from monthly internet
services charges
- Cost of international links
- Accounts receivable for monthly
internet services charges
- Accounts payable for international
link
The Necessity and Reasonableness of Transactions
Transaction Description
Revenues from monthly internet services fees
Revenues from transponder services, internet subscriber line fees, and
broadband link services fees
Receivable and payable interest
Revenues and cost of agency and other commission fees
Technical services fees for IPSTAR and operating costs
Cost of server maintenance and operating costs
Telephone line rental fees for provision of internet connection
Advertising fees, telephone charges, computer program fees, accounting
program fees and office rental fees
Space rental fees and server co-location, and domain name registration fees
Communication equipment maintenance fees and communication equipment
rental fees
Price Policy
At market price
Cost plus appropriated profits
At market price
Cost plus appropriated profits
At market price
At market price
At market price
At market price
At market price
At market price
The above transactions have already been considered and agreed to the Company’s audit committee at the
2/2551 meeting held on February 19, 2008 with the opinion that such related transactions at present are part of normal
business operations which support the group’s business and are in its best interests. Consequently, the said transactions as
per details above are necessary and reasonable and the return thereof is determined in consideration of appropriate market
price or cost plus profit (Cost Plus).
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CS LOXINFO

Connected Transaction Approval Procedure
In the connected transaction approval procedure, for the transactions that are normal business operations,
such as internet services and telephone line rental and etc., the Company will set up conditions according to
normal business practice using the market price normally charged to general customers or a determined price
taking into account the actual cost incurred plus reasonable profit which is the rate charged to general
customers. The Company will have its audit committee, or its auditor, or a specialist provide an opinion on the
reasonableness of the transaction and price suitability.
As for other connected transactions, the Company will set up conditions according to normal business
practice and the market price applicable to general customers will be used. If the market price is not available,
the Company will cause an independent expert to obtain appropriate price and condition for the best benefits of
the Company and its shareholders. Before taking such action, the Company has to obtain approval from the
Board of Directors or shareholders as appropriate. The Company will have its audit committee, or its auditor,
or a specialist provide an opinion on the reasonableness of the transaction and price suitability in approving the
connected transaction to support the decision of the Company’s Board of Directors or shareholders as the case
may be.
The Company complies with the regulations of the SEC and SET on information disclosure of
connected transactions, acquisition of major assets of the Company and its affiliates, and the accounting
standards established by Federation of Accounting Profession.
Policies and Future Trend of Connected Transactions
It is projected that connected transactions in the future will still consist of normal business operations.
Future connected transactions shall be in accordance with the above approval procedure.
85 CS LOXINFO

Management’s Discussion and Analysis
The Company had a net
profit from normal operating
amounting to Baht 226 million
or 6% from 2006. This has
come from an increase of net
profits from Internet access
services and TMC
Overview
The Company had a net profit of Baht 261 million or Baht 0.42 per share, an increase of Baht 48
million or 23% from 2006. This comprises of net profit from normal operating amounting to Baht 226
million and net profit from an adjustment on its financial statements about an investment of Teleinfo Media
Public Company Limited (“TMC”) totaling Baht 35 million.
The Company reported a consolidated operating income for 2007 of Baht 2,600 million, an increase
of Baht 88 million or 4% from 2006. This was due to 100% recognition of Mobile Content business’s
performance and from the investment in Watta Classified Company Limited (çWattaé) since Q2/2007.
At the Board of Directors meeting held on 9 August 2007, a resolution was passed to approve a share
repurchase program to the maximum amount not exceeding Baht 225 million to utilize the Company’s
excess liquidity and increase ROE. As of 22 November 2007 the total shares repurchased was 51.7 million
shares or 8.3% of paid-up capital with total amount of Baht 222.1 million, achieving the number of shares
repurchased for the Share Repurchase Project.
Since Q1/2007, The Company has adopted The Thai Accounting Standard TAS 44 (amendment
2006) and TAS 45 (amendment 2006). This amendment requires investments in subsidiaries and associates
to be accounted for at cost (previously by equity method) in separate financial statements. As a result of the
changes in the accounting policy, the Company will have an accumulated a loss of Baht 620 million.
However, the Shareholders’ Meeting held on 23 April 2007 approved the transfer of the legal reserve fund
of Baht 46 million and the reserve fund in excess of the par value of Baht 574 million to offset the
Company’ s accumulated losses. The transaction has been presented in “Adjustment from compensation for
deficit” in the statement of separate changes in shareholders’ equity for the year ending 31 December 2007.
Operating Results
Comparison of the consolidated financial statement for the year ending 31 December 2007 to the
consolidated financial statement for the same period of the previous year
The Company reported a consolidated net profit for 2007 of Baht 261 million, an increase of Baht 48
million or up 23% from 2006. In addition, the Company had a profit before interest expense and income tax
of Baht 391 million, an increase of Baht 49 million or up 14% due to an increase of profit from Internet
access services and the Publishing of the Thailand YellowPages and its Voice Info Service and net profit
from an adjustment on its financial statements regarding an investment of TMC.
Selected financial information
(Unit : Million Baht)
Description 2007 2006 Variance (%)
Cost of sales and service 1,382 1,365 1
SG&A xepenses 827 805 3
Operating profit 391 342 14
Deferred income tax 130 119 9
Net profit 261 213 23
EPS (Baht) 0.42 0.34 24
Revenue from dial-up and
broadband services decreased
by 42% and 11%, respectively
while revenue from leased
lines services increased by
14% due to the Company
having instead put more
effort on sales and expanded
customer base in business
or corporate segment
Total Revenue from sales and services
In 2007, the Company earned Baht 2,518 million in total revenues from sales and services, an
increase of Baht 57 million, or 2%, over 2006. Details are as given below:-
1) Revenue from Internet Access
In 2007, the revenue from internet access services was Baht 1,311 million, a decrease of Baht 29
million, or 2% from 2006. The details are as follows:-
• Revenue from leased lines services increased by Baht 111 million due to the Company having
instead put more effort on sales and expanded customer base in business or corporate segment by
concentrating on the quality of service and value added services, to respond to customer needs.
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Revenue from publishing
Yellow Pages and Voice
Info Services decreased
6%. This resulted from
launching the City
Yellow Pages.
Cost of sales and services
increased by 1% due to cost
of Mobile Content Service
and Print Classified Business
increased while cost of
Internet Service and
Publishing the Thailand
YellowPages decreased.
Costs from the Yellow
Pages and Voice Info
Service decreased by 16%
from cost of publishing of
some specific handbooks
• Revenue from dial up and broadband internet services decreased by Baht 108 million and Baht 32
million, respectively. This was due to some customers having migrated to lower priced broadband of
incumbent telecom operators.
2) Revenue from Publishing Yellow Pages and Voice Info Service
In 2007, the Company recognized revenue from the publishing of Thailand YellowPages, and Voice
Info Service amounting to Baht 861 million, a decrease of Baht 56 million or 6% as compared to 2006,
amounting to Baht 917 million. This resulted from a decrease of the sale of advertising space in the specific
books (Thailand Export-Import Yellow Pages and Visitors’ Guide to Thailand Guidebook). Therefore, the
Company having instead put more effort in developing new products emphasizing the sale of advertising
space in sub-community areas. However, these projects were still on developing processes, so its revenue
cannot cover the decrease of the sale of advertising space in such specific books. The Company had further
expanded the Publishing Yellow Pages Service into City Yellow Pages (City Pages) in order to better
facilitate specific lifestyles in each city area. At the end of year 2007, the Company had launched two
volumes of City Yellow Pages (Nonthaburi Book and Pathumthani Book). Moreover, the Company plans to
expand this City Yellow Pages into other potential provinces of Thailand.
3) Revenue from Mobile Content Service
In 2007, the Company recognized revenue from Mobile Content Service of Baht 147 million, an
increase of Baht 44 million or 43% over 2006 because the Company recognized 100% of Mobile Content
Service revenue in this year. Incidentally, the Company recognized only 51%, 60% and 100% of Mobile
Content Service revenue in Q2/2006, Q3/2006 and Q4/2006, respectively.
4) Revenue from Print Classified Business
The Company recognized revenue from Print Classified Business for 2007 of Baht 133 million. This
was due to an investment in Watta Classified Company Limited since Q2/2007.
Cost of sales and services
In 2007, the Company had total costs of Baht 1,382 million, an increase of Baht 17 million or 1%
over 2006, which had amounted to Baht 1,365 million. This was due to an increased cost from Mobile
Content Service and Print Classified Businesses. Coincidentally, cost of Internet Service and Publishing the
Thailand YellowPages decreased. Details are as given below:-
1) Cost of Internet services
In 2007, costs associated with internet services was Baht 896 million, decreasing Baht 47 million or
5% over 2006, amounting to Baht 943 million, because of efficient network rental cost management and the
decrease of rental cost of telephone lines due to revenue from dial up decreasing.
2) Cost of Voice Info Service and Publishing of the Yellow Pages
In 2007, the Company recognized costs from the Yellow Pages and Voice Info Service amounting to
Baht 289 million, a decrease of Baht 54 million or 16% from 2006, amounting to Baht 343 million. This
resulted from a decrease of costs of some specific handbooks.
3) Cost of Mobile Content Service
In 2007, the Company recognized revenue from Mobile Content Service of Baht 89 million, an
increase of Baht 32 million or 56% over 2006 because the Company recognized 100% of costs from Mobile
Content Services this year. Incidentally, the Company recognized only 51%, 60% and 100% of cost from
Mobile Content Service in Q2/2006, Q3/2006 and Q4/2006, respectively.
4) Cost of Print Classified Business
The Company recognized costs from Print Classified Business for 2007 of Baht 90 million. This was
due to an investment in Watta Classified Company Limited since Q2/2007.
87 CS LOXINFO

Selling and administrative
expenses increased by 3%
from Mobile Content
Service and Print Classified
Business. Coincidentally,
selling and administrative
expenses of Internet service
and Publishing the Thailand
YellowPages decreased.
Gross Profit and net profit
increased of 4% and 23%,
respectively, because of
the increase in revenues
from leased line services,
efficient network rental
cost management,
and the decrease in
marketing expenses.
Selling and Administrative Expenses
The Company had total selling and administrative expenses during 2007 of Baht 827 million, an
increase of Baht 22 million or 3% over 2006, amounting to Baht 805 million. This was due to the increase of
selling and administrative expenses for Mobile Content Service and Print Classified Business. Coincidentally,
selling and administrative expenses of Internet service and Publishing the Thailand YellowPages decreased.
Details are as given below:-
1) Selling and administrative expenses of Internet services
Selling and administrative expenses of internet services in 2007 was Baht 312 million, a decrease of
Baht 10 million, or 3% over 2006, which had amounted to Baht 322 million, due to the Company had
concentrated on marketing directly to corporate customers, rather than individual customers. This way, the
Company could reduce a lot of marketing and advertising expenses.
2) Selling and Administrative Expenses of the Yellow Pages and Voice Info Service
The Company recognized selling and administrative expenses of publishing of the Yellow Pages in
2007 of Baht 406 million, a decrease of Baht 38 million or 9% over 2006, which had been Baht 444
million. This resulted from a decrease of marketing expenses and the impact of the adjustment on provision
from acquisition of investment (TMC).
3) Selling and administrative expenses of Mobile Content Service
In 2007, the Company recognized selling and administrative expenses of mobile content service of Baht
56 million, an increase of Baht 18 million or 47% over 2006, amounting to Baht 38 million because the
Company recognized 100% of selling and administrative expenses from Mobile Content Services in this year.
By the way, the Company recognized only 51%, 60% and 100% of selling and administrative expenses from
Mobile Content Service in Q2/2006, Q3/2006 and Q4/2006, respectively.
4) Selling and administrative expenses of Print Classified Business
The Company recognized selling and administrative expenses for Print Classified for 2007 of Baht 53
million. This was due to an investment in Watta Classified Company Limited since Q2/2007.
Gross Profit and Net Profit
The Company had a gross profit and net profit amounting to Baht 1,136 million and Baht 261 million
respectively, an increased of 4% and 23%, as compared to 2006, which was presented Baht 1,095 million
and Baht 213 million, respectively. These were mainly due to the increase in revenues from leased line.
Moreover, cost of internet services decreased due to efficient network rental cost management and the
decrease in marketing expenses.
Financial Position
At the end of the year 2007, the Company had total assets of Baht 2,368 million, a decrease of Baht
247 million or 9% from the end of the previous year when total assets stood at Baht 2,615 million. Details
are given below:-
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The major asset components comprise the following:
31 December 2007 31 December 2006
Assets Amout % of tolal Amout % of tolal
(MB) Assets (MB) Assets
Cash and cash equivalents 713 30 779 30
Trade accounts receivable and accrued income, net 340 14 323 12
Inventories 98 4 113 4
Current assets 1,209 51 1,267 48
PP&E, net 322 14 335 13
Goodwill, net 639 27 739 28
Withholding tax, net 58 2 97 4
Total assets 2,368 100 2,615 100
Trade accounts payable 335 14 306 12
Current liabilities 729 31 675 26
Provision from acquisition of investment - - 121 5
Non current liabilities 14 1 132 5
Total liabilities 743 31 807 31
Total shareholder’ s equity 1,625 69 1,808 69
At the end of 2007, current assets amounted to Baht 1,209 million, a decrease of Baht 58 million or 5%.
• Cash and cash equivalent are Baht 713 million, a decrease of Baht 66 million from its operation and
treasury stock program.
• Trade accounts receivable and accrued income is Baht 340 million, an increase of Baht 17 million or 5%.
This resulted from an investment in Watta Classified Company Limited since Q2/2007.
• Inventories are Baht 98 million, a decrease of Baht 15 million because of a decrease of the reserved
printing paper for the Thailand YellowPages Book of Teleinfo Media (Public) Company Limited.
Furthermore, the Company had Baht 639 million in net goodwill, a decrease of Baht 100 million over 2006.
This was due to
• A decrease of goodwill amortization of TMC which was resulted from the adjustment of provision from
acquisition of investment of TMC Baht 67 million.
• The amortization of goodwill - net of the subsidiaries (LoxServe, TMC, ADV and Watta) for year 2007
totaling Baht 69 million.
• An increase of the negative goodwill from the additional acquisition of Loxley Information Services
Company Limited (“LoxServe”) in 2007, amounting to Baht 13 million.
• An increase of goodwill from an acquisition of Watta Classified Company Limited, amounting Baht 81 million.
Liabilities and Shareholder’s Equity
By the end of 2007, the Company had total liabilities of Baht 743 million, a decrease of Baht 64 million or
8% from the end of 2006, when total liabilities stood at Baht 807 million. This came largely from the impact of the
adjustment on provision from acquisition of investment (TMC).
Shareholder’s Equity
In 2007, the Company had shareholdersû equity of Baht 1,625 million, a decrease of Baht 183 million or 10%.
This was due to
• Treasury Stock programs: the cumulative number of shares repurchased as at 31 December 2007 totaling
Baht 222 million, achieving the maximum amount of the Share Repurchase Project.
• 2006 dividend payment (0.14 Baht/share) and 2007 interim payment (0.20 Baht/share) totaling Baht 213 million
• Minority interests - net decreased Baht 15 million. This resulted from an additional acquisition of Loxley
Information Services Company Limited (“LoxServe”) from the minority shareholders on February 2007
(1.85%) and May 2007 (3.81%)
• Net profit for the year increased Baht 261 million
• The increase in its share capital to the amount of Baht 6 million due to the exercising of the right in
pursuance with the ESOP Program
89 CS LOXINFO

Assets Quality
Accounts Receivable
As at 31 December 2007, the Companyûs trade accounts receivable and accrued income, net, amounted to
Baht 340 million, equivalent to 14% of total assets. The trade accounts receivable comprised of third parties and
related parties, represented 88% and 12% of total trade accounts receivable, respectively. The average collection
period was 48 days in 2007
Trade Accounts receivable: The Companyûs policy of providing credit to customers is divided into two
types, as follows:-
1) Internet Access Services Business
Trade accounts receivable consist of two types of customer:-
1. Individual customers equal to 17% of total trade accounts receivable, provided with a credit term of
30 days. Average collection period was 31 days in 2007, decreasing from 32 days in 2006.
2. Corporate customers and government agencies equal to 83% of total trade accounts receivable
provided with a credit term of 30 - 90 days. Average collection period was of 42 days in 2007,
increasing from 40 days in 2006.
2) Publishing the Thailand YellowPages Business
Average collection period in year 2007 was 79 days (89 days in 2006). The Companyûs credit term
policies are base on the billing of each advertiser:-
• Less than Baht 35,000 shall be paid in full or within 30 days
• More than Baht 35,000 shall be paid in full or in 4 installments
3) Mobile Content Service Business
Average collection period in year 2007 was 23 days (24 days in 2006), with a credit term of 30 days.
4) Print Classified Business
Trade accounts receivable consist of two types of customer:-
1. Individual customers for 2007 equal to 12% of total trade accounts receivable, decreasing from 20%
in 2007, provided with a credit term of 30 - 60 days. Average collection period was 75 days in
2007, decreasing from 103 days in 2006.
2. Corporate customers and government agencies for 2007 equal to 88% of total trade accounts
receivable, increasing from 80% in 2006, provided with a credit term of 45 - 120 days. Average
collection period was of 78 days in 2007, increasing from 58 days in 2006.
Trade Accounts receivable as of December 31, 2007
2007 2006
Overdue period Unit: Million Baht % Unit: Million Baht %
Current 136 35% 82 21%
Less than 90 days 63 16% 90 23%
90 - 180 days 29 7% 35 9%
180 - 360 days 93 24% 105 27%
Over 360 days 67 18% 74 19%
Total trade accounts receivable 388 100% 386 100%
Less allowances for doubtful accounts (59) 15% (76) 20%
Net trade accounts receivable 329 85% 310 80%
Based on the table above, the Company had net trade accounts receivable of Baht 388 million. In addition, the
Company had an allowance for doubtful accounts of Baht 59 million or 15% of total trade accounts receivable.
In view of the collection history management, believes that the allowances for doubtful account are appropriate.
90
CS LOXINFO

Liquidity
In 2007, the Companyûs current ratio was 1.66 times, decreasing from 2006 which it was at 1.88 times.
The Companyûs quick ratio was 1.45 times, decreasing from 2006 which it was at 1.63 times. The decreases came
largely from a decrease of the reserved printing paper for the Thailand YellowPages Book of Teleinfo Media
(Public) Company Limited and treasury stock program.
The Companyûs cash flows from operations amounted to Baht 584 million, a decrease of 17% from last
year. This resulted from a decrease of deferred income tax and amortization accounts. The Companyûs cash flow
from investment was Baht 221 million, increasing by 89% from 2006. This was due to an investment in Watta
Classified Company Limited since Q2/2007. The Company also paid dividend and purchased treasury stock
totaling Baht 213 million and Baht 222 million in 2007, respectively.
Clarification
1. The impact of the adjustment on Provision from acquisition of investment
As at 31 December 2007 the Company has an adjustment on provision from acquisition of investment
stated at the accompanying financial statements in a total amount of Baht 124.8 million. This provision derived
from the purchase of shares from Teleinfo Media Public Company Limited (“TMC”) from TOT. Under the
condition of purchasing, the Company has a commitment to pay an additional amount for the shares of Baht
127.5 million to TOT in 2008. (Please see more detail in “Clarification No.4: Investment in TMC”)
TMC’s operating results for 1 January 2006 to 31 December 2007 showed revenue of Baht 1,778 million.
TMC was unable to generate aggregate total revenue of Baht 2,000 million or more within 31 December 2007.
As a result, the Company may not be required to pay the additional share price and has therefore reversed the
provision from acquisition of investment in the current quarter. The impacts of this transaction on the
accompanying consolidated financial statements as at 31 December 2007 are as follows:-
• Balance sheet as of 31 December 2007: The decrease in goodwill Baht 89.6 million and the decrease in
provision from acquisition of investment - net Baht 124.8 million.
• Statement of income for the year ended 31 December 2007: The increase in net profit Baht 35.2 million.
This resulted from the decrease in interest expense and administrative and selling expenses Baht 4.1 million and
Baht 7.7 million, respectively, with other income increased by Baht 23.4 million.
2. The effect of change in investment accounting policy
Since Q1/2007, the Company has changed the accounting method in recording investments in subsidiaries
and associates in separate financial statements from the equity method to cost method as per Thai Accounting
Standard No.44. As a consequence, the Company has restated the prior year’s comparative financial statements
retrospectively, as if the cost method had always been in use. Therefore, the 2006 comparative figures are
prepared on the assumption that the new accounting method has been applied. The Company has recorded
the investment in subsidiaries and associates at historical costs in the separate financial statements, which lead to
net profit in separate financial statements to be different from those in the consolidated financial statements.
The details are as follows:-
Consolidated ended 31 December Company ended 31 December
2007 2006 2007 2006
Net prfit (MB) 261 213 490 190
Basic earnings pershare (Baht) 0.42 0.34 0.80 0.30
Diluted earnings pershare (Baht) 0.42 0.34 0.79 0.30
Moreover, the effect of this change in investment accounting policy will be as follows:-
1. The net profit for the year ending 31 December 2007, presented in separated income statements
increased Baht 229 million. This resulted from dividend received from TMC in 2007.
2. Investment in subsidiaries and retain earnings on the balance sheet as at 31 December 2006, presented
in separate financial statement, decreased Baht 640 million. The accumulated change from the change in
this accounting policy has been presented in çPrior period adjustmenté at the statement of separate changes
in shareholdersû equity.
91 CS LOXINFO

Nonetheless, this is merely a change in accounting policy for investments in subsidiaries and associates in
separate
financial statements, not a change in any fundamental factors affecting the Companyûs business.
3. Revenue and Cost Recognition Policy of TMC
1. Revenue Recognition of TMC
TMC had its main revenue from the sale of advertising space in the Thailand Yellow Pages. According
to the General Accepted Accounting Principle (GAAP), TMC recognized revenue of Yellow Pages
by the straight-line method, starting from the month the Yellow Pages was issued in the current year
to the month it will be issued next year. For 2006 onward, TMC will recognize revenue from the YellowPages
in 12 months by the useful life of the telephone directory from 16 January of each year to
15 January of next year.
Year issuing Period (month) Started Ended
2006 12 January 16, 2006 January 15, 2007
2007 12 January 16, 2007 January 15, 2008
2008 12 January 16, 2008 January 15, 2009
2. Cost Recognition of TMC
The Costs of TMC are mainly derived from direct variable costs, such as the cost of paper used for
printing the Yellow Pages. This cost was recognized by the same method of revenue recognition as
mentioned above. Fixed costs are recognized when they occur.
4. Investment in TMC
Date Proportion (%) amout (million Baht)
March 4, 2004 63.25 • 507
June 29, 2005 36.75 • 510 (on transter date) plus
• 128 million if TMC earns revenue
in 2006 and 2007 combined
equal to or higher than Baht
2,000 million within 30 days after
the auditor certifies the financial
5. Investment in ADV
Date Proportion (%) amout (million Baht)
April 4, 2006 51.00 17.95
July 29, 2006 9.09 3.20
September 27, 2006 39.91 14.05
Total 100.00 35.20
ADV also held 70% stakes in Shinee Dot Com (“Shinee”), a mobile content operator
(January
2008: ADV held 99.99% stakes in Shinee Dot Com)
6. Investment in Watta
Date Proportion (%) amout (million Baht)
April 27, 2007 60.00 88
92
CS LOXINFO

Board of Directors’ Responsibility
for Financial Reporting
The Board of Directors is responsible for CS LoxInfo Public Company Limited’s financial
statements and for CS LoxInfo Public Company Limited and its subsidiaries’ consolidated financial
statements, including the financial information presented in this annual report. The aforementioned
financial statements are prepared in accordance with generally accepted accounting principles, using
careful judgment and the best estimation. Important information is adequately and transparently
disclosed in the notes to financial statements to the Company’s shareholders and investors.
The Board of Directors has provided and maintained a risk management system and appropriate
and efficient internal controls to ensure that accounting records are accurate, have integrity and are
adequate to protect its assets and uncover weakness in order to prevent fraud or materially irregular
operation.
In this regard, the Board of Directors has entrusted an Audit Committee responsible for review
the accounting policy and financial reports, review internal controls, internal audit and risk management
system. Such comment on these issues have been included in the Audit Committee Report, which is
presented in this annual report.
The financial statements of the Company and the consolidated financial statements of Company
and its subsidiaries have been examined by an external auditor, PriceWaterhouseCoopers ABAS
Limited. In conducting their audit and to express an opinion in accordance with generally accepted
auditing standards, the Company has supported them with all of the Company’s records and related
data. The auditor’s opinion is presented in the auditor’s report as part of this annual report.
The Board of Directors believes that the Company’s overall internal control system has functioned
up to a satisfactory level and rendered credibility and reliability to CS LoxInfo Public Company
Limited’s financial statements and for the consolidated financial statements of CS LoxInfo Public
Company Limited and its subsidiaries for the period ended December 31, 2007 and that they have been
prepared according to generally accepted principles and related regulations.
Prof. Wongkulpat Snidvongs na Ayudyha, M.D.
Chairman of the Board of Directors
Dr. Dumrong Kasaemset
Chairman of the Executive Committee
93 CS LOXINFO

Auditor’s Report
To the Shareholders of CS LoxInfo Public Company Limited
I have audited the accompanying consolidated and company balance sheets as at 31 December
2007, and the related consolidated and company statements of income, changes in shareholders’ equity,
and cash flows for the year then ended of CS Loxinfo Public Company Limited and its subsidiaries,
and of CS Loxinfo Public Company Limited, respectively. The Company’s management is responsible
for the correctness and completeness of information in these financial statements. My responsibility is
to express an opinion on these financial statements based on my audit. The consolidated and company
financial statements (before restatement), for the year ended 31 December 2006 of CS Loxinfo Public
Company Limited and its subsidiaries and of CS Loxinfo Public Company Limited were audited by the
another auditor from the same firm as myself, whose report dated 22 February 2007 expressed an
unqualified opinion on those statements.
I conducted my audit in accordance with generally accepted auditing standards. Those standards
require that I plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. I believe that my audit provides a reasonable basis for my
opinion.
In my opinion, the consolidated and company financial statements referred to above present fairly,
in all material respects, the consolidated and company financial position as at 31 December 2007, and
the consolidated and company results of operations, and cash flows for the year then ended of
CS Loxinfo Public Company Limited and its subsidiaries, and of CS Loxinfo Public Company Limited,
respectively, in accordance with generally accepted accounting principles.
Prasit Yuengsrikul
Certified Public Accountant (Thailand) No. 4174
PricewaterhouseCoopers ABAS Limited
Bangkok
20 February 2008
94
CS LOXINFO

CS LoxInfo Public Company Limited
Balance Sheets As at 31 December 2007 and 2006
Consolidated
Company
2007 2006 2007 2006
Restated
Notes Baht Baht Baht Baht
Assets
Current assets
Cash and cash equivalents 4 712,899,866 779,013,897 222,134,315 177,706,222
Trade accounts receivable and
accrued income, net 5, 33 340,408,830 323,453,089 152,026,756 144,078,202
Amounts due from related parties 33 558,370 162,010 281,829 420,465
Inventories, net 6 97,985,018 113,342,189 8,626,404 7,180,852
Advance payments to a related party
for services 33 - 8,335,600 - 8,335,600
Other current assets 7 56,761,227 42,372,587 18,490,063 9,387,054
Total current assets 1,208,613,311 1,266,679,372 401,559,367 347,108,395
Non-current assets
Investments in subsidiaries and an associate
- cost method 8 - - 942,901,379 957,634,703
Investments in subsidiaries and an associate
- equity method 8 - 3,692,704 - -
Long-term investment - other 9 4,706,872 2,550,971 - -
Property, plant and equipment, net 10 322,093,137 334,945,437 173,344,003 199,839,850
Equipment under concession
agreements, net 11 2,779,291 13,271,670 2,779,291 13,271,670
Intangible assets, net 12 33,826,835 47,793,346 9,048,839 17,088,490
Goodwill, net 13 639,029,373 739,157,906 - -
Deferred tax assets 14 70,154,648 84,033,394 27,892,221 29,429,152
Withholding tax receivable 58,227,021 97,362,216 21,966,299 47,249,689
Deposits 28,863,963 25,758,958 13,260,863 13,396,423
Total non-current assets
Total assets
1,159,681,140 1,348,566,602 1,191,192,895 1,277,909,977
2,368,294,451 2,615,245,974 1,592,752,262 1,625,018,372
The notes to the consolidated and company financial statements on pages 102 to 144 are an integral part of these financial statements.
95 CS LOXINFO

CS LoxInfo Public Company Limited
Balance Sheets (Continued) As at 31 December 2007 and 2006
Consolidated
Company
2007 2006 2007 2006
Restated
Notes Baht Baht Baht Baht
Liabilities shareholders’ equity
Current liabilities
Trade accounts payable 33 335,445,794 306,240,416 221,835,675 190,824,854
Other accounts payable 33 14,386,207 26,671,846 2,564,872 7,847,041
Amounts due to related parties 33 2,552,614 2,528,056 - 34,884
Current portion of obligations under
financial lease 17 717,802 - - -
Short-term loan from a related party 33 12,000,000 - - -
Foreign currency forward contracts
payable, net 34 25,524 706,920 - -
Unearned income and advances received
from customers 202,126,245 210,716,347 104,459,368 112,147,539
Accrued expenses 33 104,678,375 105,367,819 48,368,065 46,074,046
Other current liabilities 16 57,346,073 22,905,382 13,808,497 7,531,081
Total current liabilities 729,278,634 675,136,786 391,036,477 364,459,445
Non-current liabilities
Provision from acquisition of investment 18 - 120,765,376 - 120,765,376
Obligations under finance leases 17 2,542,794 - - -
Other non-current liabilities 11,349,704 10,908,970 11,034,530 9,694,969
Total non-current liabilities 13,892,498 131,674,346 11,034,530 130,460,345
Total liabilities 743,171,132 806,811,132 402,071,007 494,919,790
The notes to the consolidated and company financial statements on pages 102 to 144 are an integral part of these financial statements.
96
CS LOXINFO

CS LoxInfo Public Company Limited
Balance Sheets (Continued) As at 31 December 2007 and 2006
Consolidated
Company
2007 2006 2007 2006
Restated
Notes Baht Baht Baht Baht
Shareholders’ equity
Share capital
19
Authorised share capital - ordinary shares 660,849,474 649,020,074 660,849,474 649,020,074
Issued and paid-up share capital -
ordinary shares 626,899,344 625,000,000 626,899,344 625,000,000
Premium on share capital 421,625,182 992,141,435 421,625,182 992,141,435
Treasury shares 29 (222,088,462) - (222,088,462) -
Retained earnings
Appropriated
Legal reserve 30 24,480,140 45,636,154 24,480,140 45,636,154
Treasury share reserve 31 222,088,462 - 222,088,462 -
Unappropriated 529,046,642 107,301,341 117,676,589 (532,679,007)
Total parent’s shareholders’ equity 1,602,051,308 1,770,078,930 1,190,681,255 1,130,098,582
Minority interests 32 23,072,011 38,355,912 - -
Total shareholder’s equity 1,625,123,319 1,808,434,842 1,190,681,255 1,130,098,582
Total liabilities and shareholders’ equity 2,368,294,451 2,615,245,974 1,592,752,262 1,625,018,372
The notes to the consolidated and company financial statements on pages 102 to 144 are an integral part of these financial statements.
97 CS LOXINFO

CS LoxInfo Public Company Limited
Statements of Income For the years ended 31 December 2007 and 2006
Consolidated
Company
2007 2006 2007 2006
Restated
Notes Baht Baht Baht Baht
Revenues 33
Revenues from sales and services
2,517,548,093 2,460,375,882 1,403,609,074 1,445,115,051
Other income 20 82,148,216 51,842,830 34,815,325 23,840,913
Dividend received from a subsidiary - - 359,995,993 80,693,310
Share of net result from investments -
equity method 39,928 18,605 - -
Total revenues
2,599,736,237 2,512,237,317 1,798,420,392 1,549,649,274
Expenses 33
Cost of sales and services 1,381,583,855 1,365,101,046 952,292,337 994,317,061
Selling and administrative expenses 822,883,729 800,590,040 306,028,592 305,923,038
Directors’ remuneration 3,717,696 2,400,000 3,707,696 2,345,000
Loss on foreign exchange 485,994 2,022,458 501,269 434,723
Total expenses
2,208,671,274 2,170,113,544 1,262,529,894 1,303,019,822
Profit before interest expense and
income tax 22 391,064,963 342,123,773 535,890,498 246,629,452
Interest expense 21, 33 355,543 5,429,423 257,754 5,425,362
Profit before income tax 390,709,420 336,694,350 535,632,744 241,204,090
Income tax 26 129,979,119 119,158,517 46,029,946 51,304,851
Profit before minority interests 260,730,301 217,535,833 489,602,798 189,899,239
Loss (profit) attributable to minority
interests, net 265,011 (4,951,275) - -
Net profit for the year 260,995,312 212,584,558 489,602,798 189,899,239
Earnings per share 23
Basic earnings per share 0.42 0.34 0.80 0.30
Diluted earnings per share 0.42 0.34 0.79 0.30
The notes to the consolidated and company financial statements on pages 102 to 144 are an integral part of these financial statements.
98
CS LOXINFO

CS LoxInfo Public Company Limited
Statements of Changes in Shareholders’ Equity For the years ended 31 December 2007 and 2006
Consolidated (Baht)
Issued and Premium Reserve
paid-up on share Treasury Legal for treasury Minority
share capital capital shares reserve shares Retained interests
Notes (Note 19) (Note 19) (Note 29) (Note 30) (Note 31) earnings (Note 32) Total
Opening balance at
1 January 2006 - as restated 625,000,000 992,141,435 - 35,006,925 - 486,596,012 19,740,143 2,158,484,515
Legal reserve - - - 10,629,229 - (10,629,229) - -
Net profit for the year - - - - - 212,584,558 - 212,584,558
Dividend payment - - - - - (581,250,000) - (581,250,000)
Minority interests from
acquisition of investment - - - - - - 13,664,494 13,664,494
Increase in minority interests
during the year - - - - - - 4,951,275 4,951,275
Closing balance as
at 31 December 2006 625,000,000 992,141,435 - 45,636,154 - 107,301,341 38,355,912 1,808,434,842
Opening balance
at 1 January 2007 625,000,000 992,141,435 - 45,636,154 - 107,301,341 38,355,912 1,808,434,842
Increase in share capital
during the year 19 1,899,344 4,026,600 - - - - - 5,925,944
Offsetting the premium on
share capital and legal
reserve with deficit 19 - (574,542,853) - (45,636,154) - 620,179,007 - -
Increase in treasury shares
during the year 29 - - (222,088,462) - - - - (222,088,462)
Legal reserve 30 - - - 24,480,140 - (24,480,140) - -
Reserve for treasury shares 31 - - - - 222,088,462 (222,088,462) - -
Net profit for the year - - - - - 260,995,312 - 260,995,312
Dividend payment 36 - - - - - (212,860,416) - (212,860,416)
Decrease in minority interests
from the acquisition
of shares 32 - - - - - - (20,890,495) (20,890,495)
Increase in minority interests
from acquisition of
investment 32 - - - - - - 5,871,605 5,871,605
Decrease in minority interests
during the year 32 - - - - - - (265,011) (265,011)
Closing balance as
at 31 December 2007 626,899,344 421,625,182 (222,088,462) 24,480,140 222,088,462 529,046,642 23,072,011 1,625,123,319
The notes to the consolidated and company financial statements on pages 102 to 144 are an integral part of these financial statements.
99 CS LOXINFO

CS LoxInfo Public Company Limited
Statements of Changes in Shareholders’ Equity (Cont’d) For the years ended 31 December 2007 and 2006
Company (Baht)
Issued and Premium Reserve
paid-up on share Treasury Legal for treasury Retained
share capital capital shares reserve shares earnings Minority Total
Notes (Note 19) (Note 19) (Note 29) (Note 30) (Note 31) (Restated) interests (Restated)
Opening balance at 1
January 2006 625,000,000 992,141,435 - 35,006,925 - 486,596,012 - 2,138,744,372
Prior year adjustment 3 - - - - - (617,295,029) - (617,295,029)
Opening balance at 1 January
2006 - as restated 625,000,000 992,141,435 - 35,006,925 - (130,699,017) - 1,521,449,343
Legal reserve - - - 10,629,229 - (10,629,229) - -
Net profit for the year - - - - - 189,899,239 - 189,899,239
Dividend payment - - - - - (581,250,000) - (581,250,000)
Closing balance as at 31
December 2006 - as
restated 625,000,000 992,141,435 - 45,636,154 - (532,679,007) - 1,130,098,582
Opening balance at 1
January 2007 625,000,000 992,141,435 - 45,636,154 - 107,301,341 - 1,770,078,930
Prior year adjustment 3 - - - - - (639,980,348) - (639,980,348)
Opening balance at 1 January
2007 - as restated 625,000,000 992,141,435 - 45,636,154 - (532,679,007) - 1,130,098,582
Increase in share capital
during the year 19 1,899,344 4,026,600 - - - - - 5,925,944
Offsetting the premium on
share capital and legal
reserve with deficit 19 - (574,542,853) - (45,636,154) - 620,179,007 - -
Increase in treasury shares
during the year 29 - - (222,088,462) - - - - (222,088,462)
Legal reserve 30 - - - 24,480,140 - (24,480,140) - -
Reserve for treasury shares 31 - - - - 222,088,462 (222,088,462) - -
Net profit for the year - - - - - 489,602,798 - 489,602,798
Dividend payment 36 - - - - - (212,857,607) - (212,857,607)
Closing balance as at 31
December 2007 626,899,344 421,625,182 (222,088,462) 24,480,140 222,088,462 117,676,589 - 1,190,681,255
The notes to the consolidated and company financial statements on pages 102 to 144 are an integral part of these financial statements.
100
CS LOXINFO

CS LoxInfo Public Company Limited
Statements of Cash Flows For the years ended 31 December 2007 and 2006
Consolidated
Company
2007 2006 2007 2006
Restated
Notes Baht Baht Baht Baht
Net cash flows from operating activities 24 584,279,442 703,551,850 275,143,210 295,569,653
Cash flows from investing activities
Increase from long-term investment - other 2,147,283 (19,817) - -
Payments for investment in subsidiaries,
net of cash acquired 25 (84,603,309) (16,759,458) (97,946,105) (35,963,998)
Proceeds from reduction in share capital
of a subsidiary - - - 256,558,474
Cash received from the liquidation of an associate 8 (b) 3,731,722 - 3,731,722 -
Dividend received from a subsidiary 8 (b) - - 359,995,993 80,693,310
Payments for acquisitions of property,
plant and equipment (137,426,638) (105,273,404) (66,210,698) (76,567,706)
Payments for intangible assets (9,221,126) (15,198,745) (1,578,817) (2,698,598)
Proceeds from sale of equipment 1,451,619 20,415,712 309,522 18,314,661
Proceeds from sale of intangible assets 3,000,000 - - -
Net cash flows receipt from (used in)
investing activities (220,920,449) (116,835,712) 198,301,617 240,336,143
Cash flows from financing activities
Repayments of finance leases liabilities (452,487) (254,500) - -
Proceeds from increase in share capital 19 5,925,944 - 5,925,944 -
Payments for treasury shares 29 (222,088,462) - (222,088,462) -
Dividend payment 36 (212,860,416) (581,250,000) (212,857,607) (581,250,000)
Net cash used in financing activities (429,475,421) (581,504,500) (429,020,125) (581,250,000)
Net increase (decrease) in cash
and cash equivalents (66,116,428) 5,211,638 44,424,702 (45,344,204)
Cash and cash equivalents, opening balance 779,013,897 774,028,396 177,706,222 223,232,495
Effects of exchange rate changes 2,397 (226,137) 3,391 (182,069)
Cash and cash equivalents, closing balance 4 712,899,866 779,013,897 222,134,315 177,706,222
Supplementary information for cash flows:
Withholding tax deduct at source and
income tax paid 86,444,178 51,115,140 30,144,488 26,718,998
Interest paid 109,955 4,124 - 63
Non-cash transactions
Acquisitions of equipment through debts 12,302,527 22,369,086 2,564,872 7,847,041
Acquisitions of intangible assets through debts 2,083,680 4,302,760 - -
The notes to the consolidated and company financial statements on pages 102 to 144 are an integral part of these financial statements.
101 CS LOXINFO

CS LoxInfo Public Company Limited
Notes to the Consolidated and Company Financial Statements
For the years ended 31 December 2007 and 2006
1
General information
CS Loxinfo Public Company Limited (“the Company”) is a public limited company incorporated and
resident in Thailand. The address of the Company’s registered office is as follows:-
414 Phaholyothin Road, Sam Saen Nai, Phayathai, Bangkok 10400.
CS Loxinfo Public Company Limited (“the Company”) and its subsidiaries are collectively referred to as
“the Group”.
The Company is an associate of the Shin Satellite Public Company Limited Group. Shin Broadband
Internet (Thailand) Company Limited (a subsidiary of Shin Satellite Public Company Limited) owns 43.48%
of the Company’s shares (taking into account the effect of treasury shares).
The Company has been registered as a listed company since April 2004. The principal activities of the
Company and its subsidiaries and associate (“the Group”) are the provision of internet data centre services,
internet, satellite uplink-downlink services for domestic and international communications, the printing and
publishing of telephone directories, the conducting classified and printing directories businesses and mobile contents.
The Company entered into concession agreements with CAT Telecom Public Company Limited (“CAT”)
for a period of 22 years from 9 August 1994 to 8 August 2016 to provide satellite uplink-downlink and
satellite internet services, and to provide internet services in Thailand for a period of ten years from 16 April
1997 to 15 April 2007.
The National Telecommunications Commission (“NTC”) has current responsibility for granting licenses to
provide internet access services in Thailand. The Company and its subsidiary operate the business to provide
internet and telecommunication services under licenses granted by NTC as follows:
Type of license Issued Date Period
Licenses of the Company
Internet Operation License Type II 26 April 2007 5 years
Internet Operation License Type I 8 September 2007 1 year
Telecom Operation License Type I 11 October 2007 1 year
Telecom Operation License Type III 20 December 2007 15 years
Licenses of Subsidiary
Internet Operation License Type I 29 June 2007 1 year
According to the conditions specified by NTC, if the authorised licensee is not in significant violation of
the conditions specified in the license, NTC will consider renewing the license as normal procedure.
Certain equipment that the Company has been using is equipment for which the title has been transferred
to CAT under a concession contract which expired on 15 April 2007. The Company is currently in the process
of purchasing these assets from CAT for the provision of internet services. The book value of these assets are
presented in Note 11.
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On 27 April 2007, the Company acquired 120,000 ordinary shares of Watta Classified Company
Limited (“Watta”) at Baht 733.34 per share, equivalent to 60% of the share capital of Watta. As a result,
Watta and its subsidiaries changed status to be the Company’s subsidiaries from the date on which control was
transferred to the Company (Note 25).
As at 31 December 2007, the Group employs 1,400 people (2006: 997 people).
These consolidated and company financial statements were approved for issue by the Board of Directors
on 20 February 2008.
New Accounting Standards and Amendments to Accounting Standards with the effective date in 2008
The following new accounting standards and amendments to accounting standards are revised and are
mandatory for accounting periods beginning on or after 1 January 2008.
Amendments to Accounting Standards
TAS No. 25 “Cash Flow Statements”
TAS No. 29 “Leases”
TAS No. 31 “Inventory”
TAS No. 33 “Borrowing Costs”
TAS No. 35 “Presentation of Financial Statements”
TAS No. 39 “Accounting Policies, Changes in Accounting Estimates and Errors”
TAS No. 41 “Interim Financial Reporting”
TAS No. 43 “Business Combinations”
TAS No. 49 “Construction Contracts”
New Accounting Standards
TAS No. 51 “Intangible Assets”
The Group will apply these standards and amendments from 1 January 2008. However, the management
determines that the application of these standards will not have significant impact on the consolidated and
company financial statements as of 31 December 2007 being presented, except the revised TAS 35
“Presentation of Financial Statements” which requires the additional disclosures on critical judgement and
estimates made by the management and the revised TAS 43 “Business Combinations” which requires intangible
assets with indefinite useful life will no longer be amortised but be tested for impairment annually.
2
Accounting policies
The principal accounting policies adopted in the preparation of these consolidated and company financial
statements are set out below:-
2.1 Basis of preparation
The consolidated and company financial statements have been prepared in accordance with Thai generally
accepted accounting principles under the Accounting Act B.E. 2543, being those Thai Accounting Standards
issued under the Accounting Profession Act B.E. 2547, and the financial reporting requirements of the
Securities and Exchange Commission under the Securities and Exchange Act B.E. 2535.
The accounting principles applied may differ from generally accepted accounting principles adopted in
103 CS LOXINFO

other countries and jurisdictions. The accompanying consolidated and company financial statements are
therefore not intended to present the financial position and results of operations and cash flows in accordance
with jurisdictions other than Thailand. Consequently, these consolidated and company financial statements are
only addressed to those who are informed about Thai generally accepted accounting principles and practices.
The consolidated and company financial statements have been prepared under the historical cost convention.
The preparation of financial statements in conformity with Thai generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
amounts of revenues and expenses in the reported years. Although these estimates are based on management’s
best knowledge of current events and actions, actual results may differ from those estimates.
Where necessary, comparative figures have been adjusted to conform with changes in presentation in the
current year.
An English version of the consolidated and company 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.
2.2 Group accounting - investment in subsidiaries, associates and joint venture
• Subsidiary undertakings
Subsidiaries are all entities over which the Group has the power to govern the financial and operating
policies generally accompanying a shareholding of more than one half of the voting rights. Subsidiaries are
consolidated from the date on which control is transferred to the Group and are no longer consolidated from the
date that control ceases.
The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group.
The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and
liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are
measured initially at their fair values at the acquisition date. The excess of the cost of acquisition over the fair
value of the Group’s share of the identifiable net assets acquired is recorded as goodwill. If the cost of
acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised as
negative goodwill. See Note 2.11 for the accounting policy on goodwill. Intercompany transactions, balances
and unrealised gains on transactions between group companies are eliminated; unrealised losses are also
eliminated unless costs cannot be recovered. Where necessary, accounting policies of subsidiaries have been
changed to ensure consistency with the policies adopted by the Company.
In the Company’s separate financial statements investments in subsidiaries are reported using the cost
method of accounting.
A list of the Group’s principal subsidiaries is set out in Note 8
• Associated undertakings
Associates are all entities over which the Group has significant influence but not control, generally
accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are
initially recognised at cost. In the consolidated financial statements are accounted for using the equity method
and using cost method in the company financial statements. The Company’s investment in associates includes
goodwill identified on acquisition, net of any accumulated amortisation cost. The Company’s share of the postacquisition
profits or losses of associates is recognised in the income statement. The cumulative postacquisition
movements are adjusted against the cost of the investment. Unrealised gains or losses on
transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the
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associates; unrealised losses are also eliminated unless the transaction provides evidence of an impairment of
the asset transferred. The Group’s investment in associates includes goodwill (net of accumulated amortisation
of goodwill) on acquisition. When the Group’s share of losses in an associate equals or exceeds its interest in
the associate, the Group does not recognise further losses, unless it has incurred obligations or made payments
on behalf of the associate.
A list of the Group’s principal associates is set out in Note 8
2.3 Related parties
Enterprises and individuals that directly, or indirectly through one or more intermediaries, control, or are
controlled by, or are under common control with, the Company, including holding companies, subsidiaries and
fellow subsidiaries, are related parties of the Company. Associates and individuals owning, directly or
indirectly, an interest in the voting power of the Company that gives them significant influence over the
enterprise, key management personnel, including directors and officers of the Company and close members of
the family of these individuals and companies associated with these individuals also constitute related parties.
In considering each possible related party relationship, attention is directed to the substance of the
relationship, and not merely the legal form.
2.4 Foreign currency translation
Items included in the financial statements of each entity in the Group are measured in Thai Baht. The
consolidated and company financial statements are presented in Thai Baht.
Transactions denominated in foreign currencies are translated into Thai Baht at the rate of exchange
prevailing on the transaction dates. Monetary assets and liabilities at the balance sheet date denominated in
foreign currencies are translated into Thai Baht at the rate of exchange prevailing at the balance sheet date.
Gains and losses resulting from the settlement of foreign currency transactions and from the translation of
monetary assets and liabilities denominated in foreign currencies are recognised in the income statements.
2.5 Cash and cash equivalents
Cash and cash equivalents are carried in the balance sheet at cost. Cash and cash equivalents comprise
cash on hand and deposits held at banks, and other short-term highly liquid investments with original maturities
of three months or less from the acquisition date.
2.6 Trade accounts receivable
Trade accounts receivable are carried at the original invoice amount and subsequently measured at the
remaining amount less allowance for doubtful receivables based on a review of all outstanding amounts at the
year end. The amount of the allowance is the difference between the carrying amount of the receivable and the
amount expected to be collectible. Bad debts are written off during the year in which they are identified and
recognised in the income statement as selling and administrative expenses.
2.7 Inventories
Inventories are stated at the lower of cost or net realisable value. Cost is determined using the FIFO
method. The cost of purchase comprises both the purchase price and the costs directly attributable to the
acquisition of the inventory, such as taxes and transportation charges, less all attributable discounts and rebates.
The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and
related production overheads, but excludes borrowing costs. Net realisable value is the estimate of the selling
price in the ordinary course of business, less the costs of completion and selling expenses. Allowance is made,
where necessary, for obsolete, slow-moving and defective inventories.
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2.8 Investments
Investments with fixed maturity that management has the intention and ability to hold to maturity are
classified as held-to-maturity and are included as non-current assets, except for those with maturity within
12 months from the balance sheet date, which are classified as short-term investment in under current assets.
A test for impairment, the difference between the net disposal proceeds and the carrying amount is
charged or credited to the income statements. On disposal of an investment, the difference between the net
disposal proceeds and the carrying amount is charged or credited to the income statements.
2.9 Property and equipment
All property and equipment is initially recorded at cost and subsequently shown at historical cost, less
accumulated depreciation. Depreciation is calculated using the straight-line method to write off the cost of each
asset over its estimated useful life as follows:-
Leasehold improvements 5 years
Computer equipment 3 - 10 years
Furniture and fixtures 5 years
Office equipment 5 years
Motor vehicles 5 years
Printing equipment 5 years
Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down
immediately to its recoverable amount. The estimated recoverable amount is the higher of the anticipated,
discounted cash flows from the continuing use of the asset and the amount obtainable from the sale of the asset,
less any cost of disposal.
Gains and losses on disposal of property and equipment are determined by reference to their carrying
amount and are taken into account in determining operating profit.
Repairs and maintenance expenses are charged to the income statements during the financial year in which
they are incurred. The cost of major renovations is included in the carrying amount of the asset when it is
probable that future economic benefits in excess of the originally assessed standard of performance of the
existing asset will flow to the Group. Major renovations are depreciated over the remaining useful life of the
related assets.
2.10 Equipment under concession agreements
Equipment under concession agreements represents, Internet networks, servers, fiber optic networks
and other operating equipment, which has been transferred to CAT Telecom Public Company Limited
under concession agreements. Concession assets are carried at the historical cost less accumulated amortisation.
They are amortised using the straight-line method over the shorter of the estimated useful lives of these
assets, ranging from five to ten years, or the remaining concession period. Concession assets are not revalued.
The carrying amount of concession assets is reviewed annually and adjusted for impairment where it is
considered necessary.
2.11 Intangible assets
• Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of
identifiable assets and liabilities of the acquired subsidiary, associate or joint venture undertaking at the date of
acquisition. Goodwill on acquisitions of subsidiaries and joint ventures is reported in the consolidated balance
sheet as goodwill. Goodwill on acquisitions of associates is included in investments - equity method in the
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consolidated financial statements. Goodwill is amortised using the straight-line method over its estimated
useful life. Management determines the estimated useful life of goodwill based on its evaluation of the
respective companies at the time of the acquisition, considering factors such as existing market share, potential
growth and other factors inherent in the acquired companies.
Goodwill arising on acquisitions of the Group is amortised over a period of 4 - 12 years.
Negative goodwill represents the excess of the fair value of the Group’s share of the net assets acquired
over the cost of acquisition. Negative goodwill is presented under the same balance sheet classifications as
goodwill. Any remaining negative goodwill, not exceeding the fair values of the non-monetary assets acquired,
is recognised in the statement of income over the remaining weighted average useful life of those assets;
negative goodwill in excess of the fair values of those assets is recognised in the statement of income
immediately.
Negative goodwill arising on acquisitions of the Group is recognised over a period of two years.
• Intangible assets - other
Expenditure on purchased computer software, Internet equipment provided to customers in connection
with services obtained from the Company and the right to publish books is capitalised and amortised using the
straight-line method over its useful life which is estimated by management, at five to ten years for purchased
computer software and, the period of each service agreement for Internet equipment. The right to publish books
is amortised using the straight-line method over its estimated useful life, which management has determined to
be three years. Intangible assets are not revalued. The carrying amount of each intangible asset is reviewed
annually and adjusted for impairment where it is considered necessary.
2.12 Deferred tax
The Group and the Company recognised deferred income tax in full, using the liability method, on
temporary differences arising from differences between the tax base of assets and liabilities and their carrying
amounts in the financial statements. Deferred tax assets are recognised to the extent that it is probable that
future taxable profit will be available against which the temporary differences can be utilised. Deferred income
tax is provided on temporary differences arising from investments in subsidiaries, associates and joint ventures,
except where the timing of the reversal of the temporary difference can be controlled and it is probable that the
temporary difference will not reverse in the foreseeable future. The tax rate at the balance sheet date was used
to calculate the deferred income tax.
2.13 Employee benefits
The Group operates a provident fund, which is a defined contribution plan, the assets of which are held in
a separate trust fund. The provident fund is funded by payments from employees and by the relevant Group
companies. Contributions to the provident fund are charged to the statement of income in the year to which
they relate. However, the Group does not provide for employment benefits payable to employees under the
Thai Labour Law.
Warrants granted to directors and employees of the Group are recognised when they are exercised.
2.14 Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation, and a reliable estimate of the amount of the obligation can be made. Where the Group expects an
107 CS LOXINFO

expenditure item to be reimbursed, the reimbursement is recognised as a separate asset but only when the
reimbursement is virtually certain.
Provisions are measured at the present value of the expenditures expected to be required to settle the
obligation using a pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest
expenses.
2.15 Revenue recognition
Sales are recognised upon delivery of products and customer acceptance. Revenues from rendering
services and sales are net of value added tax and discounts. Revenue from sales of newspapers and publishing
is net of value added tax, discounts and the estimation of goods returned.
Revenues from rendering internet services and services related to the satellite business are recognised
when such services are rendered to customers. All costs of services incurred during the relevant periods are
treated as period costs.
Revenue from the sale of advertising space in telephone directories is recognised on a monthly basis over
the useful life of the telephone directory. Interest income is recognised as it accrues, unless collectability is in
doubt. Dividend income is recognised when the Group’s right to receive payment is established.
Advances from customers will be released to income when the services are provided.
2.16 Dividends payments
Dividends and interim dividends are recorded in the consolidated and company financial statements in the
period in which they are approved by the shareholders and the Board of Directors, respectively.
2.17 Financial instruments
Financial instruments carried on the balance sheet include cash and cash equivalents, trade accounts
receivable, amounts due from related parties, other investment, deposits, trade accounts payable, other accounts
payable, amount due to related parties, obligations under finance lease and borrowings. The particular
recognition methods adopted are disclosed in the individual policy statements associated with each item.
2.18 Foreign currency forward contracts
Foreign currency forward contracts protect the Group from movements in exchange rates.
Forward contract transactions are recorded as forward contracts receivable or forward contracts payable on
inception, and translated at the year-end rate. Unrealised gains and losses on translation are recognised in the
income statements. Premiums or discounts are amortised in the income statements on a straight-line basis over
the contract years.
2.19 Segment reporting
The segment reporting has been prepared based on the Group’s method of internal reporting, which
disaggregates its business by service or product.
2.20 Leases - where the Group is the lessee
Leases of assets where the Group assumes substantially all the benefits and risks of ownership are
classified as finance leases. Finance leases are capitalised at the inception of the lease at the lower of the fair
value of the leased assets or the present value of the minimum lease payments. Each lease payment is
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allocated to the principal and to the finance charges so as to achieve a constant rate on the finance balance
outstanding. The corresponding rental obligations, net of finance charges, are included in other payables. The
interest element of the finance charge is charged to the income statements over the lease period. The property
and equipment acquired under finance leasing contracts are depreciated over the shorter of the estimated useful
life of the assets or the lease term. However, if there is reasonable certainty that the lessee will obtain
ownership by the end of the lease term, depreciation is calculated over the estimated useful life of the assets.
Leases not transferring a significant portion of the risks and rewards of ownership to the lessee are
classified as operating leases. Payments made under operating leases (net of any incentives received from the
lessor) are charged to the statement of income on a straight-line basis over the period of the lease.
When an operating lease is terminated before the lease period has expired, any payment required to be
made to the lessor by way of penalty is recognised as an expense in the period in which termination takes
place.
2.21 Leases - where the Group is the lessor
Assets leased out under operating leases are included in property and equipment in the balance sheet.
They are depreciated over their expected useful lives on a basis consistent with similar fixed assets. Rental
income is recognised on a straight-line basis over the lease term.
2.22 Impairment of assets
Property and equipment and other non-financial assets, including goodwill and intangible assets, are
reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognised for the amount by which the carrying amount of the
asset exceeds its recoverable amount, which is the higher of an asset’s net selling price and value in use. For
the purpose of assessing impairment, assets are grouped at the lowest level for which there are separately
identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that have suffered an
impairment are reviewed for possible reversal of the impairment at each reporting date.
2.23 Treasury share
Where the Company or its subsidiaries purchase the Company’s equity share capital from the shareholders,
the consideration paid is recognised as treasury share and is presented as a reduction from total shareholders’
equity until shares are resold or cancelled. Where such shares are subsequently resold or reissued, any
consideration received-net of related taxes on sales is presented under the shareholders’ equity.
3
Change in accounting policy
Change in accounting policy for investments in subsidiaries and associates, presented in the company
financial statements.
The announcement of Federation of Accounting Professions on 2 May 2007 relating to amendments to
TAS 44 “Consolidated and Separate Financial Statements”, TAS 45 “Investments in Associates” and TAS 46
“Interests in Joint Ventures” requires the change from the equity method to cost method of accounting for
investments in subsidiaries, associates and interests in joint ventures, presented in the company financial
109 CS LOXINFO

statements. Under the cost method, income from investment will be recorded when dividends are declared. The
notification is mandatory from 1 January 2007. The change in the accounting policy has an impact to the
company financial statements only and does not have an impact to the consolidated financial statements.
The Group has adopted the cost method commencing from 1 January 2007 by applying retrospective
adjustments. The effects of the changes on the Company financial statements for the year ended 31 December
2006 are as follows:-
Company
Baht
Balance sheet as at 31 December 2006
Decrease in investments in subsidiaries and an associate - equity method
1,597,615,051
Increase in investments in subsidiaries and an associate - cost method
957,634,703
Shareholders’ equity
Decrease in beginning balance of retained earnings
617,295,029
Decrease in closing balance of retained earnings
639,980,348
Statement of income for the year ended 31 December 2006
Increase in dividend receipt from a subsidiary
80,693,310
Decrease in share of net results from investments - equity method
184,914,763
Decrease in administrative and selling expenses (Goodwill)
81,536,134
Decrease in net profit
22,685,319
Decrease in basic earnings per share 0.04
Decrease in diluted earnings per share 0.04
4 Cash and cash equivalents
Consolidated
Company
2007 2006 2007 2006
Baht Baht Baht Baht
Cash on hand 3,037,722 201,303 71,113 125,139
Current accounts and savings deposits
held at call with banks 317,845,006 338,784,405 162,063,202 137,569,379
Fixed deposits 17,138 16,485 - -
Promissory notes 392,000,000 440,011,704 60,000,000 40,011,704
Total 712,899,866 779,013,897 222,134,315 177,706,222
The effective interest rates of deposits held with banks and promissory notes were 0.125% - 3.15 % per annum
(2006: 0.125% - 5.250% per annum).
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5 Trade accounts receivable and accrued income, net
Consolidated
Company
2007 2006 2007 2006
Baht Baht Baht Baht
Trade accounts receivable:
- Third parties 347,403,287 318,600,552 131,748,746 107,087,227
- Related parties (Note 33) 38,706,893 67,148,404 18,335,542 40,256,944
Total trade accounts receivable 386,110,180 385,748,956 150,084,288 147,344,171
Accrued income:
- Third parties 8,259,805 12,155,397 3,091,528 3,879,787
- Related parties (Note 33) 5,990,069 1,354,261 5,990,069 1,354,261
Total accrued income 14,249,874 13,509,658 9,081,597 5,234,048
Total trade accounts receivable and
accrued income 400,360,054 399,258,614 159,165,885 152,578,219
Less Allowance for doubtful accounts (59,951,224) (75,805,525) (7,139,129) (8,500,017)
Total trade accounts receivable and
accrued income, net 340,408,830 323,453,089 152,026,756 144,078,202
Outstanding trade accounts receivable as at 31 December 2007 and 2006 can be analysed by aging as
follows:-
Consolidated
Company
2007 2006 2007 2006
Baht Baht Baht Baht
Current 135,947,015 81,816,181 80,163,290 53,200,735
Overdue less than 3 months 62,346,311 90,145,758 54,040,548 61,932,565
Overdue 3-6 months 28,221,789 34,808,485 3,479,114 7,678,213
Overdue 6-12 months 92,386,381 105,307,360 3,515,645 10,853,708
Overdue more than 12 months 67,208,684 73,671,172 8,885,691 13,678,950
386,110,180 385,748,956 150,084,288 147,344,171
Less Allowance for doubtful accounts (59,951,224) (75,805,525) (7,139,129) (8,500,017)
Trade accounts receivable, net 326,158,956 309,943,431 142,945,159 138,844,154
As at 31 December 2007, the Group had allowances for doubtful accounts of Baht 59.9 million (2006:
Baht 75.8 million) and the Company’s allowances for doubtful accounts of Baht 7.1 million (2006: Baht 8.5
million). Based on the collection history, management believes that the allowances for doubtful account are
sufficient.
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6 Inventories, net
7 Other current assets
Consolidated
Company
2007 2006 2007 2006
Baht Baht Baht Baht
Raw material 44,801,216 54,497,487 118,134 120,765
Work in process 43,728,117 53,889,885 1,659,653 2,205,130
Finished goods 9,144,579 6,926,851 6,443,460 6,732,940
Supplies 462,800 471,938 462,800 471,938
98,136,712 115,786,161 8,684,047 9,530,773
Less Allowance for obsolete inventories (151,694) (2,443,972) (57,643) (2,349,921)
Total inventories, net 97,985,018 113,342,189 8,626,404 7,180,852
Consolidated
Company
2007 2006 2007 2006
Baht Baht Baht Baht
Prepaid expenses 38,948,742 29,535,973 14,886,012 6,553,518
Value added tax refundable 3,381,140 3,896,423 - -
Interest receivable 824,050 3,553,172 110,666 215,386
Others 13,607,295 5,387,019 3,493,385 2,618,150
Total other current assets 56,761,227 42,372,587 18,490,063 9,387,054
8 Investments in subsidiaries and an associate
a) Investments in subsidiaries and an associate as at 31 December 2007 and 2006 are as follows:-
Consolidated
Company
31 December 31 December 31 December 31 December
2007 2006 2007 2006
Restated
Baht ’000 Baht ’000 Baht ’000 Baht ’000
Investment recorded
as cost method
Investment in subsidiaries - - 942,901 957,583
Investment in an associate - - - 52
Total investment recorded
as cost method - - 942,901 957,635
Investment recorded
as equity method
Investment in an associate - 3,693 - -
Total investอment recorded
as equity method - 3,693 - -
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) Movements in investments in subsidiaries and an associate for the years ended 31 December 2007 and
2006 are as follows
Consolidated
Company
(Cost method) (Cost method)
For the years ended 31 December 2007 2006 2007 2006
Restated
Baht ’000 Baht ’000 Baht ’000 Baht ’000
Opening net book value
- As previous reported - - - -
- Adjustment from change in
accounting policy from equity
method to cost method (Note 3) - - 957,635 921,671
Opening net book value - restated - - 957,635 921,671
Acquisition of investment in
subsidiaries (Note 25) - - 97,945 35,964
Reversal of provision from
acquisition of investment in
subsidiary (Note 18) - - (112,627) -
Investment returned from
liquidation of an associate - - (52) -
Closing net book value - - 942,901 957,635
Consolidated
(Equity method)
Company
(Equity method)
For the years ended 31 December 2007 2006 2007 2006
Restated
Baht ’000 Baht ’000 Baht ’000 Baht ’000
Opening net book value
- As previous reported 3,693 3,674 - 1,597,615
- Adjustment from change in
accounting policy from equity
method to cost method (Note 3) - - - (1,597,615)
Opening net book value - restated 3,693 3,674 - -
Share of net results from
investments 40 19 - -
Investment returned from
liquidation of an associate (3,733) - - -
Closing net book value - 3,693 - -
113 CS LOXINFO

) Movements in investments in subsidiaries and an associate for the years ended 31 December 2007 and
2006 are as follows (Cont’d):
Loxley Information Services Company Limited
On 2 February 2007, the Company acquired 480,000 ordinary shares and 3,600 ordinary shares in Loxley Information
Services Company Limited (“Loxserv”) from CAT Telecom Public Company Limited and its employees respectively at Baht 12.90
per share, representing 1.86% of the paid-up share capital, at a total price of Baht 6.2 million. On 10 May 2007, the Company
acquired 991,593 ordinary shares in Loxserv from Point Asia Dot Com (Thailand) Company Limited at Baht 2.02 per share (the
price is in line with the condition stated in shares purchase agreement entered in 2002 between Point Asia Dot Com (Thailand)
Company Limited and the Company) totalling Baht 2 million or equivalent to 3.81% of the paid-up share capital of Loxserv. As a
result of this acquisition, the Company owns 99.86% of Loxserv. Negative goodwill recognised from the acquisition of these
ordinary shares in Loxserv of Baht 12.7 million is amortised using the straight-line method over its estimated useful life of four
years. This estimated useful life is consistent with the amortisation period applicable to the remaining goodwill of Loxserv carried
forward from prior periods (Note 25 (b)).
Watta Classified Company Limited
On 27 April 2007, the Company acquired 120,000 ordinary shares in Watta Classified Company Limited (“Watta”) at Baht
733.34 per share, equivalent to 60% of the share capital of Watta, at a total price of approximately Baht 89.7 million. As a result,
Watta and its subsidiaries changed their status to become the Company’s subsidiaries from the date on which control was transferred
to the Company (Note 25 (a)).
AD Venture Company Limited
On 27 April 2007, the extraordinary shareholders’ meeting of AD Venture Company Limited No. 1/2550 passed a resolution
to approve a reduction in the registered share capital of AD Venture Company Limited by Baht 378.03 million (from Baht 550
million to Baht 171.97 million) by decreasing 37.80 million ordinary shares to offset against the remaining deficits. The reduction
in the registered share capital was registered with the Ministry of Commerce on 29 August 2007. The change does not have an
impact on the percentage of shareholding in this subsidiary.
Shineedotcom Company Limited
On 27 April 2007, the extraordinary shareholders’ meeting of Shineedotcom Company No. 1/2550 passed a resolution
to approve a reduction in the registered share capital of Shineedotcom Company Limited by Baht 110 million (from Baht 190
million to Baht 80 million) by decreasing 11 million ordinary shares from each shareholder at the proportion of their shareholding
to offset against the remaining deficits. The reduction in the registered share capital was registered with the Ministry of Commerce
on 29 August 2007. The change does not have an impact on the percentage of shareholding in this subsidiary.
Teleinfo Media Public Company Limited
On 25 May 2007, at the annual ordinary shareholders’ meeting of Teleinfo Media Public Company Limited, the shareholders
passed a resolution to approve a dividend payment of Baht 17.29 per share totalling Baht 300 million. The dividend was paid
on 18 June 2007.
At the Board of Directors meeting of Teleinfo Media Public Company Limited on 24 August 2007, a resolution was passed
to approve the interim dividend payment of Baht 1.73 per share totalling Baht 30 million. The Company paid the dividend
on 20 September 2007.
At the Board of Directors meeting of Teleinfo Media Public Company Limited on 23 November 2007, a resolution was
passed to approve the interim dividend payment of Baht 1.73 per share totalling Baht 30 million. The Company paid the dividend
on 21 December 2007.
CS Loxinfo Solutions Company Limited
On 15 June 2007, the extraordinary shareholders’ meeting No. 2/2007 of CS Loxinfo Solutions Company Limited passed a
resolution to approve the liquidation report and on 19 June 2007, CS Loxinfo Solutions Company Limited obtained approval from
the Ministry of Commerce for the liquidation. Upon the completion of the liquidation, CS Loxinfo Solutions Company Limited had
remaining cash of Baht 8.06 million, which would be returned to its shareholders at Baht 161.13 per share. On 31 July 2007, the
Company received the return on investment of Baht 3.73 million.
Comchat Company Limited, Decode Company Limited and Idea Maker Company Limited
On 12 November 2007 and on 30 November 2007, the extraordinary shareholders’ meeting of Comchat Company Limited,
Decode Company Limited and Idea Maker Company Limited, passed resolutions to approve their liquidation. These companies were
registered for liquidation with the Ministry of Commerce on 30 November 2007.
114
CS LOXINFO

c) The details of investments in subsidiaries and an associate can be summarised as follows:-
Name
Subsidiaries
Loxley Information Services
% of holding
31 December 31 December
Country Currency 2007 2006
Providing Internet
Company Limited services Thailand Baht 99.86 94.19
Teleinfo Media Public Company Limited Publishing telephone
directories and
advertising Thailand Baht 100.00 100.00
AD Venture
Company Limited
Watta Classified Company Limited
Business
Holding company in
mobile contents business Thailand Baht 100.00 100.00
Conducting classified and
printing directories businesses Thailand Baht 60.00 -
Associate
CS Loxinfo Solutions
Company Limited Liquidation Thailand Baht - 44.99
Subsidiaries of AD Venture
Company Limited Group
Shineedotcom Providing mobile contents Thailand Baht 70.00 70.00
Company Limited
Hunsa Dot Com
Company Limited Banner advertising Thailand Baht 100.00 100.00
Sodamag Corp
Company Limited Banner advertising Thailand Baht 100.00 100.00
Subsidiaries of Watta
Comchat Company Limited In process of liquidation Thailand Baht 99.94 -
Decode Company Limited In process of liquidation Thailand Baht 99.93 -
Idea Maker Company Limited In process of liquidation Thailand Baht 99.97 -
115 CS LOXINFO

d) Carrying values of investments in subsidiaries and an associate are as follows:-
Consolidated - 31 December 2006 (Baht ’000)
(Equity method)
Paid-up % of
Associate:
CS Loxinfo Solutions Company Limited
capital
5,000
Investment
44.99
At cost
52
Equity
3,693
Company - 31 December 2007 (Baht ’000)
(Cost method)
Paid-up
% of
capital Investment At cost
Subsidiaries:
Loxley Information Services Company Limited 260,100 99.86 254,533
Teleinfo Media Public Company Limited 173,534 100.00 562,695
AD Venture Company Limited 171,970 100.00 35,965
Watta Classified Company Limited 20,000 60.00 89,708
Total 942,901
Company - 31 December 2006 (Baht ’000)
(Cost method)
Restated
Paid-up
% of
capital Investment At cost
Subsidiaries:
Loxley Information Services Company Limited 260,100 94.19 246,297
Teleinfo Media Public Company Limited 173,534 100.00 675,322
AD Venture Company Limited 550,000 100.00 35,964
Total 957,583
Associate:
CS Loxinfo Solutions Company Limited 5,000 44.99 52
Total
957,635
116
CS LOXINFO

9 Long-term investment - other
Consolidated
Company
2007 2006 2007 2006
Baht Baht Baht Baht
Time deposits with bank 1,706,872 2,550,971 - -
Government bonds 3,000,000 - - -
Total Long-term investment - other 4,706,872 2,550,971 - -
The weighted average effective interest rate of time deposits and government bonds from the bank was 2.5%
and 5.5% per annum (2006: 1.25% per annum). As at 31 December 2007, time deposits of Baht 1.71 million
(2006: Baht 2.55 million) has been pledged as collateral in respect of bank guarantees in respect of business.
10 Property, plant and equipment, net
Consolidated (Baht)
Furniture,
Land and fixtures
leasehold Computer and office Printing Assets under
improvement equipment equipment equipment installation Total
As at 31 December 2006
Cost 27,456,718 981,659,629 330,605,080 179,725,721 4,682,533 1,524,129,681
Less Accumulated
depreciation (12,012,563) (784,788,022) (264,088,521) (128,295,138) - (1,189,184,244)
Net book value 15,444,155 196,871,607 66,516,559 51,430,583 4,682,533 334,945,437
Transactions during
the year ended
31 December 2007
Opening net book value 15,444,155 196,871,607 66,516,559 51,430,583 4,682,533 334,945,437
Additions 6,323,370 93,426,537 18,367,032 5,887,405 3,355,735 127,360,079
Increase from acquisition
of investment (Note 25) 3,760,514 - 10,106,739 - - 13,867,253
Write-offs, net - (151,417) (65,867) - - (217,284)
Disposals, net - (227,307) (858,557) - - (1,085,864)
Assets for sales (205,946) - (1,339,520) - - (1,545,466)
Transfers, net - (6,938,273) 496,731 2,483,357 (6,810,149) (10,768,334)
Depreciation (5,437,697) (74,399,411) (41,143,866) (19,481,710) - (140,462,684)
Closing net book value 19,884,396 208,581,736 52,079,251 40,319,635 1,228,119 322,093,137
As at 31 December 2007
Cost 37,280,087 1,048,139,354 349,885,901 188,096,483 1,228,119 1,624,629,944
Less Accumulated
depreciation (17,395,691) (839,557,618) (297,806,650) (147,776,848) - (1,302,536,807)
Net book value 19,884,396 208,581,736 52,079,251 40,319,635 1,228,119 322,093,137
117 CS LOXINFO

Company (Baht)
Furniture,
Land and
fixtures
leasehold Computer and office Assets under
improvement equipment equipment installation Total
As at 31 December 2006
Cost 1,902,881 659,590,778 109,643,013 3,543,289 774,679,961
Less Accumulated depreciation (1,902,869) (501,514,292) (71,422,950) - (574,840,111)
Net book value 12 158,076,486 38,220,063 3,543,289 199,839,850
Transactions during the year ended
31 December 2007
Opening net book value 12 158,076,486 38,220,063 3,543,289 199,839,850
Additions 3,540,595 46,331,355 10,255,223 801,356 60,928,529
Write-offs, net - (151,417) (34,305) - (185,722)
Disposals, net - (94,467) (220,521) - (314,988)
Transfers, net - (6,938,273) 496,731 (4,326,792) (10,768,334)
Depreciation (163,269) (53,571,085) (22,420,978) - (76,155,332)
Closing net book value 3,377,338 143,652,599 26,296,213 17,853 173,344,003
As at 31 December 2007
Cost 5,443,476 688,833,177 113,960,294 17,853 808,254,800
Less Accumulated depreciation (2,066,138) (545,180,578) (87,664,081) - (634,910,797)
Net book value 3,377,338 143,652,599 26,296,213 17,853 173,344,003
The leased assets included above, where the Group is a lessee under a finance lease are vehicles, which as follows:-
Consolidated
2007
2006
Baht ’000 Baht ’000
Cost - capitalised finance leased assets 4,629 -
Accumulated depreciation (1,714) -
Net book value 2,915 -
As at 31 December 2007, the book value of fully depreciated equipment, which is still in use, is as follows:-
Consolidated
Company
Baht ’000
Baht ’000
As at 31 December 2006 926,891 379,804
As at 31 December 2007 1,081,981 620,303
118
CS LOXINFO

11 Equipment under concession agreements, net
Consolidated
Company
Baht Baht
As at 31 December 2006
Cost 201,293,608 201,293,608
Less Accumulated amortisation (188,021,938) (188,021,938)
Net book value 13,271,670 13,271,670
Transactions during the year ended
31 December 2007
Opening net book value 13,271,670 13,271,670
Transfers, net 10,768,334 10,768,334
Amortisation charges (21,260,713) (21,260,713)
Closing net book value 2,779,291 2,779,291
As at 31 December 2007
Cost 212,061,814 212,061,814
Less Accumulated amortisation (209,282,523) (209,282,523)
Net book value 2,779,291 2,779,291
12 Intangible assets, net
Consolidated
Company
Baht Baht
As at 31 December 2006
Cost 95,135,900 27,037,123
Less Accumulated amortisation (30,540,119) (9,948,633)
Accumulated impairment loss (16,802,435) -
Net book value 47,793,346 17,088,490
Transactions during the year ended
31 December 2007
Opening net book value 47,793,346 17,088,490
Additions 7,002,046 1,578,817
Disposals, net (1,906,852) -
Write-offs, net (3,629,008) (3,629,008)
Amortisation charges (15,432,697) (5,989,460)
Closing net book value 33,826,835 9,048,839
As at 31 December 2007
Cost
Less Accumulated amortisation
90,868,213
(40,238,943)
20,346,205
(11,297,366)
Accumulated impairment loss (16,802,435) -
Net book value 33,826,835 9,048,839
119 CS LOXINFO

As at 31 December 2007, an impairment loss in respect of intangible assets amounting to Baht 16.8
million in the subsidiary has been recognised because the anticipated net discounted cash flow from the
continuing use of the asset is less than the carrying amount of this asset. The subsidiary has used the
discounted rate of 12% per annum to calculate the net future cash flow.
13 Goodwill
Consolidated (Baht)
Goodwill Negative goodwill Total
As at 31 December 2006
Cost 941,331,224 (10,769,595) 930,561,629
Less Recognition/ accumulated amortisation (194,316,153) 2,912,430 (191,403,723)
Net book value 747,015,071 (7,857,165) 739,157,906
Transactions during the year ended
31 December 2007
Opening net book value 747,015,071 (7,857,165) 739,157,906
Increase from acquisition of investment
- Negative goodwill from Loxserv (Note 25) (12,651,476) - (12,651,476)
- Goodwill from Watta (Note 25) 80,899,677 - 80,899,677
Negative goodwill from subsidiaries in
Watta group (Note 25) - (2,455,663) (2,455,663)
Reversal of provision from acquisition
of investment, net (Note 18) (97,269,142) - (97,269,142)
Recognition/ amortisation charges - net (77,295,444) 8,643,515 (68,651,929)
Closing net book value 640,698,686 (1,669,313) 639,029,373
As at 31 December 2007
Cost 912,310,283 (13,225,258) 899,085,025
Less Recognition/ accumulated amortisation (271,611,597) 11,555,945 (260,055,652)
Net book value 640,698,686 (1,669,313) 639,029,373
120
CS LOXINFO

14 Deferred tax assets
Deferred income taxes are calculated in full on temporary differences based on the liability method using a
principal tax rate of 25% for the company financial statements (2006: 25%) and 25% - 30% for the consolidated
financial statements (2006: 25% - 30%).
Deferred tax assets for tax loss carried forward are recognised to the extent that it is probable that future taxable
profit will be available against which the temporary differences can be utilised. The subsidiaries have tax loss carried
forward to offset future taxable income, which is not recognised in the consolidated financial statements as follows:-
Expired year
Million Baht
2007 33
2008 21
2009 39
2010 54
2011 221
2012 3
Total
371
The movement in deferred tax assets for the year ended 31 December 2007 is as follows:-
Consolidated (Baht)
For the year ended 31 December 2007
Unearned Recognition
income of income
Allowance for Allowance for and advances and cost
Deferred tax Loss carried doubtful obsolete received from of telephone
assets forward accounts inventories customers books Depreciation Total
Opening balance 18,107,922 21,427,742 615,695 22,954,615 12,685,620 8,241,800 84,033,394
Increase from
acquisition of
investment - 2,915,164 - 1,380,284 - - 4,295,448
Charged to statement
of income (14,143,053) (7,711,569) (573,070) (1,870,715) 4,852,421 1,271,792 (18,174,194)
Closing balance 3,964,869 16,631,337 42,625 22,464,184 17,538,041 9,513,592 70,154,648
Consolidated (Baht)
For the year ended 31 December 2006
Unearned Recognition
income of income
Allowance for Allowance for and advances and cost
Deferred tax Loss carried doubtful obsolete received from of telephone
assets forward accounts inventories customers books Depreciation Total
Opening balance 114,566,748 28,774,135 353,983 34,545,203 12,298,167 6,435,523 196,973,759
Charged to statement
of income (96,458,826) (7,346,393) 261,712 (11,590,588) 387,453 1,806,277 (112,940,365)
Closing balance 18,107,922 21,427,742 615,695 22,954,615 12,685,620 8,241,800 84,033,394
121 CS LOXINFO

Company (Baht)
For the year ended 31 December 2007
Unearned
Allowance
income
for Allowance and advances
doubtful for obsolete received from
Deferred tax assets accounts inventories customers Depreciation Total
Opening balance 2,125,005 587,480 22,874,260 3,842,407 29,429,152
Charged to statement of income (340,222) (573,070) (1,084,728) 461,089 (1,536,931)
Closing balance 1,784,783 14,410 21,789,532 4,303,496 27,892,221
Company (Baht)
For the year ended 31 December 2006
Unearned
income
Loss Allowance Allowance and advances
carried for doubtful for obsolete received from
Deferred tax assets forward accounts inventories customers Depreciation Total
Opening balance 30,305,230 7,283,744 325,768 33,219,791 3,381,318 74,515,851
Charged to statement
of income (30,305,230) (5,158,739) 261,712 (10,345,531) 461,089 (45,086,699)
Closing balance - 2,125,005 587,480 22,874,260 3,842,407 29,429,152
Deferred income tax assets and liabilities are offset for the purpose of financial statement presentation when there is a
legally enforceable right to offset the income taxes levied by the same taxation authority.
15 Credit facilities
The available credit facilities for borrowings from banks, as at 31 December 2007 are Baht 585 million (31 December
2006: Baht 585 million).
16 Other current liabilities
Consolidated
Company
2007 2006 2007 2006
Baht Baht Baht Baht
Other taxes 37,354,523 9,106,749 12,311,924 6,085,465
Retention 2,034,500 3,734,500 - -
Other payables 17,957,050 10,064,133 1,496,573 1,445,616
Total other current liabilities 57,346,073 22,905,382 13,808,497 7,531,081
122
CS LOXINFO

17 Obligations under finance leases
Consolidated
31 December 31 December
2007 2006
Baht Baht
Not later than 1 year 849,540 -
Later than 1 year but not later than 5 years 2,656,393 -
Less Future finance interest expense on
finance leases (245,337) -
Present value of finance lease liabilities 3,260,596 -
Current
Finance leases payables 717,802 -
Non-current
Finance leases payables 2,542,794 -
Total 3,260,596 -
The interest rates according to contracts of obligation under finance leases were between 3.15% - 6.80%
per annum.
18 Provision from acquisition of investment
On 29 June 2005, the Company acquired an additional 25.51 million ordinary and preferred shares in
Teleinfo Media Public Company Limited (“TMC”) at Baht 25 per share (representing a 36.75%
shareholding) from TOT Public Company Limited (“TOT”). The acquisition was subject to the following
significant conditions:-
• On 29 June 2005, the Company paid an amount of Baht 20 per share to purchase these shares.
• The Company will pay TOT an additional Baht 5 per share if TMC achieves an aggregate total
revenue from the fiscal year 2006 to 2007 of Baht 2,000 million or more. The payment is due within
30 days after TMC’s financial statements for the year ending 31 December 2007 are approved by a
certified public accountant authorised by the Securities and Exchange Commission.
TMC’s aggregate total revenue for the period from 1 January 2006 to 31 December 2007 was Baht
1,813 million which is below Baht 2,000 million. As a result, the Company is not required to pay the
additional share price and has therefore reversed the provision from acquisition of investment that was
recognised in the past.
The details of provision can be shown as follows:-
Consolidated
Company
For the years ended 31 December 2007 2006 2007 2006
Baht Baht Baht Baht
Opening balance 120,765,376 115,340,077 120,765,376 115,340,077
Interest charge during the year 2,712,650 5,425,299 2,712,650 5,425,299
Reversal:
Decrease in goodwill (97,269,142) - - -
Reversal of interest charge (2,712,650) - (2,712,650) -
Decrease in investments in subsidiaries - - (112,627,427) -
Increase in other income (23,496,234) - (8,137,949) -
Closing balance - 120,765,376 - 120,765,376
123 CS LOXINFO

19 Share capital and premium on share capital
For the year ended 31 December 2007
Number of Ordinary Premium on
shares shares share capital Total
Shares Baht Baht Baht
Issued and paid-up share capital
As at 31 December 2006 625,000,000 625,000,000 992,141,435 1,617,141,435
Increase during the year 1,899,344 1,899,344 4,026,600 5,925,944
Offsetting the premium on share capital
with deficit - - (574,542,853) (574,542,853)
As at 31 December 2007 626,899,344 626,899,344 421,625,182 1,048,524,526
The Company’s registered share capital as at 31 December 2007 comprised 661 million ordinary shares
(31 December 2006: 649 million shares) of Baht 1 each (31 December 2006: Baht 1 each). 627 million
ordinary shares were fully paid-up (31 December 2006: 625 million ordinary shares).
At the Board of Directors’ meeting of the Company on 22 February 2007, the Board of Directors passed
a resolution to recommend to shareholders the payment of dividends for the second half of 2006. The
proposed dividend was greater than 50% of the net profit after tax. As a result, the exercise ratio and exercise
price of the warrants under the ESOP schemes (Grant I to Grant IV) would be affected. Hence the Company
changed the exercise ratio and exercise price of the warrants as detailed below, effective from 28 March 2007
onwards. The shareholders subsequently approved such dividend payment on 23 April 2007 (Note 36).
Exercise ratio Exercise prices
unit : share
Baht/unit
Former New Former New
ESOP - Grant I 1 : 1.22090 1 : 1.24101 7.371 7.252
ESOP - Grant II 1 : 1.22090 1 : 1.24101 7.610 7.487
ESOP - Grant III 1 : 1.19881 1 : 1.21856 5.780 5.686
ESOP - Grant IV 1 : 1.12898 1 : 1.14758 3.171 3.120
124
CS LOXINFO

At the annual ordinary shareholders meeting of the Company held on 23 April 2007, the shareholders
passed a resolution to approve the offset of legal reserve of Baht 45.6 million and premium on share capital of
Baht 574.5 million, totalling Baht 620.1 million with deficit. The offset is allowed under the Public Limited
Companies Act section 119; which states “Where approval of the shareholder meeting has been obtained, the
company may transfer the reserve fund referred to premium on share, the reserve fund referred to legal reserve
or other reserves to compensate for the deficit of the company”.
At the annual ordinary shareholders meeting of the Company held on 23 April 2007, the shareholders
passed a resolution to approve the allocation of 8,354,400 ordinary shares, equivalent to 1.34% of the
Company’s total issued and paid-up share capital as at the date the warrants allocation was approved, under an
ESOP scheme (Grant V), by granting warrants to directors and employees of the Company and its subsidiary.
The exercise ratio is one warrant per ordinary share. The warrants are in registered form and are non-transferable.
The term of the warrants does not exceed five years from the date on which they were granted, and the
warrants have no offering price. The exercise price is the weighted-average closing price of the Company’s
shares traded on the Stock Exchange of Thailand during the period of 30 days prior to the annual ordinary
shareholders meeting held on 23 April 2007. One-third of the allocated warrants may be exercised to purchase
ordinary shares, one year from the grant date for the first exercise, and two years and three years from the grant
date for the second and third exercises, respectively. On 24 May 2007, the Securities and Exchange
Commission approved the Company’s ESOP scheme (Grant V). The issue and grant of these warrants
on 30 May 2007 was subsequently ratified and approved by the Executive Committee of the Company on 22 June 2007.
In addition, the meeting also passed a resolution to approve an increase in the Company’s registered share
capital from 649,020,074 ordinary shares, at a par value of Baht 1 each to 660,849,474 ordinary shares, at a
par value of Baht 1 each by increasing 11,829,400 additional ordinary shares. These additional 3,475,000
shares are to be allocated to support warrants from the change in exercise ratios under ESOP Grant I to
Grant IV and the remaining 8,354,400 shares are to be allocated to support warrants issuing to its directors and
employees under ESOP Grant V. The Company registered the increase in the registered share capital with the
Ministry of Commerce on 28 June 2007.
The details of the warrants of the Company as at 31 December 2007 are as follows:-
Before
dilution
Exercise Exercise
Exercise period
Issued Issued ratio prices
dates units (unit : share) (Baht/unit) First
Last
ESOP - Grant I 14 May 2004 3,096,300 1 : 1.24101 7.252 30 May 2004 30 April 2009
ESOP - Grant II 16 May 2005 2,213,700 1 : 1.24101 7.487 30 May 2005 30 April 2010
ESOP - Grant III 31 May 2005 8,559,100 1 : 1.21856 5.686 31 May 2006 30 May 2010
ESOP - Grant IV 31 May 2006 8,354,300 1 : 1.14758 3.120 31 May 2007 30 May 2011
ESOP - Grant V 30 May 2007 8,354,400 1 : 1 3.580 30 May 2008 29 May 2012
125 CS LOXINFO

Movements in the number of outstanding warrants under the ESOP scheme are as follows:-
For the year ended 31 December 2007 (’000 units)
ESOP ESOP
ESOP ESOP
ESOP
- Grant I - Grant II - Grant III - Grant IV - Grant V
Employees Employees Employees Employees Employees Grand Total
Opening balance 3,096 2,214 8,559 8,354 - 22,223
Issue during the year - - - - 8,354 8,354
Exercise during the year - - - (1,655) - (1,655)
Closing balance 3,096 2,214 8,559 6,699 8,354 28,922
Compensation costs related to the warrants are not recognised in these financial statements for the fair value of
the non-exercised warrants granted.
From 30 May 2007 to 30 November 2007, the Company received cash proceeds from the issuance of
1,899,344 ordinary shares at a price of Baht 3.12 per share, being the par value of the ordinary shares of Baht
1,899,344 and share premium of Baht 4,026,600. This issuance of the ordinary shares was the exercise of
1,655,100 units of ESOP Grant IV. These shares were registered as issued and paid-up share capital with the
Ministry of Commerce and the Stock Exchange of Thailand during 6 June 2007 to 7 December 2007.
20 Other income
Consolidated
Company
2007 2006
2007 2006
Baht Baht Baht Baht
Management fee income - - 3,381,953 5,045,575
Interest income 21,880,447 28,642,995 5,009,131 10,576,167
Refundable withholding tax - 3,717,235 - -
Reversal of provision from acquisition of investment
(Note 18) 23,496,234 - 8,137,949 -
Investment returned from liquidation of an associate
(Note 33) - - 3,679,722 -
Others income 36,771,535 19,482,600 14,606,570 8,219,171
Total other income 82,148,216 51,842,830 34,815,325 23,840,913
126
CS LOXINFO

21 Interest expenses
Consolidated
Company
2007 2006 2007 2006
Baht Baht Baht Baht
Related parties (Note 33) 245,589 - 257,754 -
Bank borrowings - 63 - 63
Finance leases 109,954 4,061 - -
Provision from acquisition of investment (Note 18) - 5,425,299 - 5,425,299
Total interest expenses 355,543 5,429,423 257,754 5,425,362
22 Operating profit before interest expense and income tax expense
The following expense,classified by nature, have been charged in arriving at the operating profit before
interest expense:-
Consolidated
Company
2007 2006 2007 2006
Restated
Baht Baht Baht Baht
Operating leases rental
293,963,733 302,801,770 257,217,785 270,533,772
Staff costs
396,674,080 354,735,048 169,573,487 164,529,502
Depreciation of property and equipment (Note 10) 140,462,684 140,125,411 76,155,332 83,297,840
Amortisation of equipment under
concession agreements (Note 11) 21,260,713 33,473,851 21,260,713 29,285,024
Recognition/amortisation of goodwill - net
(included in selling and administrative expenses)
(Note 13) 68,651,929 81,536,134 - -
Amortisation of intangible assets (Note 12) 15,432,697 12,732,431 5,989,460 4,785,858
127 CS LOXINFO

23 Basic and diluted earnings per share
Basic earnings per share is calculated by dividing the net profit for the year attributable to ordinary
shareholders by the weighted average number of ordinary shares by excluding treasury shares, which were
issued and paid up during the year.
For the diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to
assume conversion of all potential dilutive ordinary shares, which is the weighted average number of ordinary
shares by excluding treasury shares, which were issued and paid up during the year and the weighted average
number of ordinary shares which would be issued on the conversion of all the dilutive potential ordinary shares
into ordinary shares. The assumed proceeds from the exercise of ESOP would be considered to have been
received from the issue of shares at fair value. These represent share options where the exercise price is less
than the average market price of the Company’s shares for the year ended 31 December 2007.
Basic and diluted earnings per share are as follows:-
Consolidated
Company
For the years ended 31 December
2007 2006
2007 2006
Restated
Net profit (Baht)
260,995,312 212,584,558 489,602,798 212,584,558
- As previously reported
- Prior year adjustment (Note 3) - - - (22,685,319)
- As restated 260,995,312 212,584,558 489,602,798 189,899,239
Weighted average number of shares (Shares) 614,214,787 625,000,000 614,214,787 625,000,000
The effect of dilutive potential ordinary shares
(ESOP Grant IV and Grant V) 3,014,681 1,344,900 3,014,681 1,344,900
Weighted average number of shares
for diluted earnings per share (Shares) 617,229,468 626,344,900 617,229,468 626,344,900
Basic earnings per shares (Baht)
- As previously reported 0.42 0.34 0.80 0.34
- Prior year adjustment (Note 3) - - - (0.04)
- As restated 0.42 0.34 0.80 0.30
The effect of dilutive potential ordinary shares
(ESOP Grant IV and Grant V) - - (0.01) -
Diluted earnings per share (Baht) 0.42 0.34 0.79 0.30
128
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24 Cash flows from operating activities
Reconciliation of net profit for the year to cash flows from operating activities:-
Consolidated
Company
2007 2006 2007 2006
Restated
Notes Baht Baht Baht Baht
Net profit for the year 260,995,312 212,584,558 489,602,798 189,899,239
Adjustments for:
Dividend receipts from a subsidiary - - (359,995,993) (80,693,310)
Allowance for doubtful accounts 45,350,686 35,587,993 3,976,506 7,320,610
Allowance for obsolete inventory 79,699 1,053,461 79,699 1,053,461
Loss (gain) from liquidation of an associate 910 - (3,679,722) -
Depreciation of property and equipment 10 140,462,684 140,125,411 76,155,332 83,297,840
Amortisation of equipment under
concession agreements 11 21,260,713 33,473,851 21,260,713 29,285,024
Amortisation of intangible assets - other 12 15,432,697 12,732,431 5,989,460 4,785,858
Write-off of equipment, net 10 217,284 829,332 185,722 195,875
Write-off of equipment under concession
agreements, net - 2,455 - -
Write-off of intangible assets, net 12 3,629,008 - 3,629,008 -
Recognition/amortisation of goodwill, net 13 68,651,929 81,536,134 - -
Loss (gain) on sales of property
and equipment (365,756) (296,269) 5,466 (422,930)
Loss (gain) on sales of intangible assets (1,093,148) - - -
Deferred income tax 14 18,174,194 112,940,365 1,536,931 45,086,699
Write-off withholding tax 847,123 - - -
Provision for withholding tax - 569,980 - -
Financial expenses for provision from
acquisition of investment - 5,425,299 - 5,425,299
Reversal of provision from acquisition
of investment 18 (23,496,234) - (8,137,949) -
Unrealised loss (gain) on exchange rate (2,397) 226,137 (3,391) 182,069
Minority interests (265,011) 4,951,275 - -
Share of net profit from investment
- equity method 8 (39,928) (18,605) - -
Changes in operating assets and liabilities:
- trade accounts receivable and
accrued income (34,794,200) (27,543,253) (11,925,060) (3,846,404)
- amounts due from related parties (396,360) 2,782,374 138,636 832,829
- inventories 18,605,643 91,808,551 (1,525,251) (109,522)
- advance payments to a related party 8,335,600 59,533,200 8,335,600 59,533,200
- other current assets (11,024,978) 267,403 (9,103,009) (2,782,473)
- withholding tax 39,170,547 4,214,499 25,283,391 (3,393,830)
- deposits (475,656) 5,605,219 135,561 118,476
- accounts payable and accrued expenses 2,382,132 (45,785,058) 33,304,840 (24,005,100)
- amounts due to related parties 24,557 (429,192) (34,884) 34,884
- unearned income and advances received
from customers (13,191,048) (33,213,930) (7,688,171) (20,731,622)
- other current liabilities 25,645,304 1,522,195 6,277,416 756,218
- other non-current liabilities 158,136 3,066,034 1,339,561 3,747,263
Cash flows from operating activities 584,279,442 703,551,850 275,143,210 295,569,653
129 CS LOXINFO

25 Acquisition of investment
a) Watta Classified Company Limited
On 27 April 2007, the Company acquired 120,000 ordinary shares of Watta Classified Company Limited
(“Watta”) at Baht 733.34 per share, equivalent to 60% of the share capital of Watta. Total cost of acquisition
is Baht 89.7 million, which includes financial advisory expenses of Baht 1.7 million. As a result, Watta and its
subsidiaries changed status to be the Company’s subsidiaries from the date on which control was transferred to
the Company.
Net fair value of Watta’s consolidated assets and liabilities acquired at the acquisition date can be
summarised as follows:-
Net fair
value
Baht ’000
Cash and cash equivalents 13,343
Trade accounts receivable and accrued income, net 27,512
Inventories 3,328
Other current assets 1,818
Long-term investments 4,303
Property and equipment, net (Note 10) 13,867
Negative goodwill, net (Note 13)
(2,455)
Non-current assets 7,807
Trade accounts payable and note payable
(21,513)
Current portion of obligations under finance leases
(686)
Short-term loan from a related party
(12,000)
Unearned income
(4,601)
Accrued expenses
(3,939)
Other current liabilities
(8,795)
Other non-current liabilities (3,310)
Fair value of net assets 14,679
Investment portion 60%
Fair value of net assets acquired 8,807
Consideration for the acquisition
89,707
Goodwill
80,900
Net cash outflow on acquisition of a subsidiary, net of
cash and cash equivalents in a subsidiary 76,364
Goodwill recognised from the acquisition of Watta of Baht 80.9 million is presented as goodwill in the
consolidated balance sheet (Note 13) and is amortised using the straight-line method over its estimated future
benefits of nine years.
130
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) Loxley Information Services Company Limited
On 2 February 2007, the Company acquired 480,000 ordinary shares and 3,600 ordinary shares in Loxley
Information Services Company Limited (“Loxserv”) from CAT Telecom Public Company Limited (CAT) and
its employees respectively at Baht 12.90 per share, representing 1.86% of the paid-up share capital, at a total
price of Baht 6.2 million.
On 10 May 2007, the Company acquired an additional 991,593 ordinary shares in Loxserv from Point Asia
Dot Com (Thailand) Company Limited at Baht 2.02 per share, equivalent to 3.81% of the paid-up share
capital of Loxserv, at a total price of Baht 2 million. As a result of this acquisition, the Company owns
99.86% of Loxserv.
The fair value of Loxserv’s consolidated assets and liabilities acquired as at the acquisition date, can be
summarised as follows:-
Net fair value
(2 February 2007)
Baht ’000
Fair value of net assets as at the acquisition date 365,747 370,488
Increase in investment portion 1.86% 3.81%
Fair value of net assets acquired 6,774 14,116
Total fair value of net assets as at the acquisition date 20,890
Cash payment at the acquisition date 8,239
Negative goodwill (Note 13) 12,651
Negative goodwill recognised from the acquisition of these ordinary shares in Loxserv of Baht 12.7 million
is amortised using the straight-line method over its estimated useful life of four years. This estimated useful
life is consistent with the amortisation period applicable to the remaining goodwill of LoxServ carried forward
from prior periods.
Net fair value
(10 May 2007)
Baht ’000
131 CS LOXINFO

26 Income tax expense
Consolidated
Company
For the years ended 31 December 2007 2006 2007 2006
Restated
Baht Baht Baht Baht
Current tax 111,804,925 6,218,152 44,493,015 6,218,152
Deferred tax 18,174,194 112,940,365 1,536,931 45,086,699
129,979,119 119,158,517 46,029,946 51,304,851
The reconciliation of income tax expense and the results of the accounting profit multiplied by the income
tax rate is as follows:-
Consolidated
Company
For the years ended 31 December 2007 2006 2007 2006
Restated
Baht Baht Baht Baht
Profit before tax
390,709,420 336,694,350 535,632,744 241,204,090
Tax rate (%) 29.28 27.71 25.00 25.00
The result of the accounting profit
multiplied by the income tax rate 114,399,718 93,298,004 133,908,186 60,301,023
Share of net results from investments
- equity method (9,982) 4,651 - -
Unrealised loss carried forward that was not
recognised as a deferred tax asset in the past - (7,117,656) - -
Exempted income:
Dividend received from a subsidiary - - (89,998,998) (20,173,328)
Other income (3,839,571) - - -
Non-deductible expenses for tax purposes 19,428,954 32,973,518 2,120,758 11,177,156
Income tax expense 129,979,119 119,158,517 46,029,946 51,304,851
As a listed company, the Company is eligible to apply a discounted tax rate of 25% for five fiscal years
from 2004 to 2008. After this period, the applicable tax rate for the Company will be 30%. The applicable tax
rate for the subsidiaries is 30%.
27 Guarantees
As at 31 December 2007, the Group had commitments with its bankers, whereby the banks have issued
letters of guarantee in respect of business contracts and others amounting to approximately Baht 15 million
(2006: Baht 24 million).
132
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28 Commitments
As at 31 December 2007, future minimum lease payments under non-cancelable operating lease
agreements are as follows:-
Consolidated
Company
2007 2006 2007 2006
Baht ’000 Baht ’000 Baht ’000 Baht ’000
Not later than 1 year 50,248 56,311 19,730 34,294
More than 1 year but less than 5 years 44,578 29,537 4,786 24,455
Total commitments 94,826 85,848 24,516 58,749
29 Treasury shares
At the Board of Directors’ meeting on 9 August 2007, a resolution was passed to approve a program for
liquidity management purposes to repurchase share up to 51.7 million shares, (8.3% of the total number of
paid-up share capital) or the total budget for the program shall not exceed Baht 225 million, whichever firstly
completed. The repurchase of shares on the Stock Exchange of Thailand will occur during the period from
27 August 2007 to 27 February 2008. The offered price for the repurchase of shares must not exceed the
average closing price of those shares for the preceding five business days, plus an amount of 15% of that
average closing price, according to the notification of the Stock Exchange of Thailand. The period when the
repurchased shares can be resold is the three-year period following the completion of the repurchase, excluding
the first six-months of such period. The offered price for the resale of the repurchased shares must not be less
than the average closing price of those shares for the preceding five business days, less an amount of 15% of
that average closing price, according to the notification of the Stock Exchange of Thailand.
As at 22 November 2007, the Company has purchased 51.7 million ordinary shares (par value of Baht 1
each), or 8.3% of the total number of shares in issue, for a total of Baht 222.1 million achieving of the
program to repurchase as approved by the Board of Directors.
Movements of treasury shares are as follows:-
Consolidated
Company
For the years ended
31 December 31 December 31 December 31 December
2007 2006 2007 2006
Baht Baht Baht Baht
Opening balance - - - -
Increase during the year 222,088,462 - 222,088,462 -
Closing balance 222,088,462 - 222,088,462 -
133 CS LOXINFO

30 Legal reserve
Movements of the legal reserve are as follows:-
Consolidated
Company
For the years ended
31 December 31 December 31 December 31 December
2007 2006 2007 2006
Baht Baht Baht Baht
Opening balance 45,636,154 35,006,925 45,636,154 35,006,925
Offsetting legal reserve with deficit (45,636,154) - (45,636,154) -
Reserve increase during the year 24,480,140 10,629,229 24,480,140 10,629,229
Closing balance 24,480,140 45,636,154 24,480,140 45,636,154
Under the Public Limited Company Act B.E. 2535, the Company is required to set aside as a legal reserve
at least 5% of its net profit after accumulated deficit brought forward (if any) until the reserve is not less than
10% of the registered capital. The legal reserve is non-distributable.
31 Treasury share reserve
Movements of the treasury share reserve are as follows:-
Consolidated
Company
For the years ended
31 December 31 December 31 December 31 December
2007 2006 2007 2006
Baht Baht Baht Baht
Opening balance - - - -
Reserve increase during the year 222,088,462 - 222,088,462 -
Closing balance 222,088,462 - 222,088,462 -
According to letter No. Gor Lor Tor. Chor Sor. (Vor) 2/2548 of the Office of the Securities and
Exchange Commission, dated 14 February 2005 concerning the acquisition of treasury shares, a public limited
company may buy back treasury shares in an amount not exceeding the amount of its retained earnings and is
to appropriate an equal amount of retained earnings to a reserve for treasury shares, which must be maintained
until the company either sells the treasury shares or reduces its paid up share capital by an amount equal to the
value of the treasury shares which it could not sell. As at 31 December 2007, the Company has already
appropriated the full-required amount for the reverse from retained earnings.
134
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32 Minority interest
Consolidated
31 December 31 December
2007 2006
Baht Baht
Opening balance 38,355,912 19,740,143
Decrease from the acquisition of shares from minorities (Note 25) (20,890,495) -
Increase from acquisition of a subsidiary 5,871,605 13,664,494
Share of net profit (loss) of subsidiaries (265,011) 4,951,275
Closing balance 23,072,011 38,355,912
33 Related party transactions
The Company is an associate of Shin Satellite Public Company Limited, a company incorporated in
Thailand and a subsidiary of Shin Corporation Public Company Limited (collectively “Shin Group”). Shin
Broadband Internet (Thailand) Company Limited, which is a wholly owned subsidiary of Shin Satellite Public
Company Limited, owns 43.48% of the Company’s share capital, and Point Asia Dot Com (Thailand)
Company Limited, a subsidiary of Loxley Public Company Limited, and Singapore Telecommunications
Limited, owns 3.52% and 14.61% of the Company’s share capital respectively. These percentage are calculated
taking into account the impact of treasury shares. Shin Corporation Public Company Limited and Singapore
Telecommunications Limited are within the group companies of Temasek Holdings Pte Limited incorporated in
Singapore. Transactions with entities within these group companies are recognised as related party transactions
of the Company.
During the year, the Company carried out transactions with its related parties, the terms of which were
negotiated on an arm’s length basis in the ordinary course of business and according to normal trade
conditions. Management service income is determined on a mutually agreed basis as a fixed monthly fee
The following significant transactions were carried out with related parties:-
a) Revenues
Consolidated
Company
2007 2006 2007 2006
Baht ’000 Baht ’000 Baht ’000 Baht ’000
Sales and service income:
Major shareholder and its related parties 203,132 235,350 50,410 75,966
Subsidiaries - - 6,040 7,470
Other related parties
9,316 12,092 9,316 12,092
Other income:
Major shareholder and its related parties 715 779 715 779
Subsidiaries - - 3,682 8,810
Associate
- - 3,680 -
Dividend income:
Subsidiary - - 359,996 80,693
Total revenues 213,163 248,221 433,839 185,810
135 CS LOXINFO

) Expenses
Consolidated
Company
2007 2006 2007 2006
Baht ’000 Baht ’000 Baht ’000 Baht ’000
Purchase of services and goods:
Major shareholder and its related parties 221,386 183,996 218,670 181,978
Subsidiaries - - 67,991 91,680
Other related parties 2,544 7,159 2,544 7,159
Other expenses:
Major shareholder and its related parties 17,743 32,623 4,505 13,943
Subsidiaries - - 443 935
Other related parties 7,079 7,770 7,079 7,770
Interest expenses:
Subsidiary - - 258 -
Other related party 246 - - -
Total expenses 248,998 231,548 301,490 303,465
c) Outstanding balances arising from sales/purchases of goods/services/and expenses
Consolidated
Company
2007 2006 2007 2006
Baht ’000 Baht ’000 Baht ’000 Baht ’000
Trade accounts receivable
Major shareholder and its related parties 37,267 61,319 16,173 30,054
Subsidiaries - - 723 6,341
Other related parties 1,440 5,829 1,440 3,862
38,707 67,148 18,336 40,257
Less Allowance for doubtful accounts (914) (2,076) - (600)
Total trade accounts receivable 37,793 65,072 18,336 39,657
Accrued income
Major shareholder and its related parties 5,990 1,354 5,990 1,354
Total trade accounts receivable and
accrued income 43,783 66,426 24,326 41,011
136
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c) Outstanding balances arising from sales/purchases of goods/services/and expenses (Cont’d)
Consolidated
Company
2007 2006 2007 2006
Baht ’000 Baht ’000 Baht ’000 Baht ’000
Amounts due from related parties
Major shareholder and its related parties 558 162 - -
Subsidiary - - 282 420
Total amounts due from related parties 558 162 282 420
Trade accounts payable
Major shareholder and its related parties 34,731 27,425 30,137 22,945
Subsidiaries - - 4,967 7,319
Other related parties 536 1,425 536 1,425
Total trade accounts payable 35,267 28,850 35,640 31,689
Account payable of fixed assets
Major shareholder and its related parties - 5,801 - 5,801
Total account payable of fixed assets - 5,801 - 5,801
Amounts due to related parties
Major shareholder and its related parties 2,553 2,485 - -
Other related parties - 43 - 35
Total amounts due to related parties 2,553 2,528 - 35
Accrued expenses
Major shareholder and its related parties 506 667 506 667
Other related parties - 1,624 - 1,624
Total accrued expenses 506 2,291 506 2,291
137 CS LOXINFO

d) Short-term borrowing from a related party
The movements of short-term borrowing from a related party can be analysed as follows:-
Consolidated
Company
2007 2006 2007 2006
Baht ’000 Baht ’000 Baht ’000 Baht ’000
Opening balance - - - -
Borrowing from a related party 12,000 - - -
Closing balance 12,000 - - -
Short-term loan from a related party had no collateral, effective interest rate of 3% per annum and repayment
within 1 year.
e) Advance payment to a related party
Consolidated
Company
2007 2006 2007 2006
Baht ’000 Baht ’000 Baht ’000 Baht ’000
Advance payment to a related party for services 8,336 67,869 8,336 67,869
Recognised as expenses during the year (8,336) (59,533) (8,336) (59,533)
Total - 8,336 - 8,336
The Company made an advance payment to a related party for Internet network service. The prepayment
was charged to the income statements based on the service fee and the period as specified in the contract.
138
CS LOXINFO

f) Warrants of Shin Corporation Public Company Limited and Shin Satellite Public Company
Limited were granted to a member of the Board of Directors of the Company
Shin Satellite Public Company Limited (“SSA”), the parent company of Shin Broadband Internet
(Thailand) Company Limited, and Shin Corporation Public Company Limited (“Shin”), the parent
company of SSA, issued their warrants to members of the Board of Directors of SSA and Shin
respectively. The warrants of both companies are in registered form, are non-transferable and have no
offering price. The terms of the warrants do not exceed five years. The details of the warrants are
shown below:-
Shin Satellite Public Company Limited
(Before
dilution)
Exercise Exercise
Exercise period
Issued Issued ratio prices
dates units (unit : share) (Baht/unit) First
Last
ESOP - Grant I 27 March 2002 3,298,400 1 : 2.04490 13.081 Expired on 26 March 2007
ESOP - Grant II 30 May 2003 1,663,000 1 : 2.04490 6.279 30 May 2004 30 May 2008
ESOP - Grant III 31 May 2004 1,944,200 1 : 1.02245 13.913 31 May 2005 31 May 2009
ESOP - Grant IV 31 May 2005 1,619,900 1 : 1.02245 16.441 31 May 2006 31 May 2010
ESOP - Grant V 31 May 2006 2,199,800 1 : 1 11.870 31 May 2007 31 May 2011
Shin Corporation Public Company Limited
(Before
dilution)
Exercise Exercise
Exercise period
Issued Issued ratio prices
dates units (unit : share) (Baht/unit) First
Last
ESOP - Grant I 27 March 2002 18,336,200 1 : 1.11410 12.269 Expired on 26 March 2007
ESOP - Grant II 30 May 2003 1,899,300 1 : 1.11410 12.269 31 May 2004 30 May 2008
ESOP - Grant III 31 May 2004 1,089,500 1 : 1.11410 32.681 31 May 2005 30 May 2009
ESOP - Grant IV 31 May 2005 1,149,200 1 : 1.09950 37.981 31 May 2006 30 May 2010
ESOP - Grant V 31 July 2006 1,018,200 1 : 1.06582 35.353 31 July 2007 30 July 2011
139 CS LOXINFO

g) Directors’ remuneration
In 2007, the total directors’ remuneration was Baht 3.72 million (2006: Baht 2.40 million). Directors’
remuneration represents monthly compensation, annual remuneration, and meeting fees within the
amount approved by the shareholders of the Company at its annual general meeting.
h) Warrants of SSA held by a director of AD Venture Company Limited
A director of AD Venture Company Limited (“ADV”) held SSA’s Employee Stock Option Plan
(ESOP) Grant I issued on 27 March 2002 and Grant II issued on 30 May 2003 amounting to 81,700
units and 56,200 units, respectively. These warrants of SSA were grant to the director during the
year he was the employee of SSA, which is before he was appointed as a director of ADV.
34 Financial instruments
The principal financial risk faced by the Group is credit risks. However, it has no significant concentrations
of credit risk.
The carrying amounts of financial assets and liabilities approximate fair value.
Foreign currency forward contracts payable, net
As at 31 December 2007 and 31 December 2006, a subsidiary has entered into foreign currency forward
contracts to hedge the foreign exchange rate risk in respect of accounts payable. The foreign currency forward
contracts payable under these contracts are shown below:-
Consolidated
Company
2007 2006 2007 2006
Baht Baht Baht Baht
Foreign currency forward contracts
payable, net
Foreign currency forward contracts receivable 15,276,918 73,888,552 - -
Foreign currency forward contracts payable 15,302,442 74,595,472 - -
Total foreign currency forward contracts
payable, net 25,524 706,920 - -
140
CS LOXINFO

Foreign currency forward contracts payable, net (Cont’d)
Consolidated
2007
USD Baht
2006
USD Baht
Within 1 year 454,000 15,302,442 2,055,000 74,595,472
longer than 1 year - - - -
Total 454,000 15,302,442 2,055,000 74,595,472
Net fair values of derivative financial instruments
The net fair values of derivative financial instruments at the balance sheet date were:-
Financial derivatives
Consolidated
Company
2007 2006 2007 2006
Baht Baht Baht Baht
Foreign currency forward contracts 15,315,626 73,888,552 - -
The net fair values of foreign currency forward contracts and option contracts have been calculated based
on rates quoted by the Group’s bankers to terminate the contracts at the balance sheet date.
141 CS LOXINFO

35 Segment information
Financial information by business segment:
For the year ended 31 December 2007 (Baht ’000)
Satellite
uplink -
downlink Internet Media and Mobile Consolidation
services services Advertising Contents eliminations Group
Revenues from sales and
services 25,366 1,375,779 993,513 147,465 (24,575) 2,517,548
Share of net profit from
investments in an associate - 40 - - - 40
Cost of sales and services (17,727) (917,032) (378,890) (88,792) 20,857 (1,381,584)
Selling and administrative
expenses - (317,389) (457,445) (55,485) 3,718 (826,601)
Segment results 7,639 141,398 157,178 3,188 - 309,403
Operating profit 309,403
Other income 82,148
Loss on foreign exchange
(486)
Profit before interest 391,065
Interest expenses
(356)
Deferred income tax
(129,979)
Minority interest
265
Net profit for the year 260,995
Total segment assets 34,100 1,756,533 524,389 61,863 (8,591) 2,368,294
Segment liabilities 2,197 455,594 269,004 24,967 (8,591) 743,171
Depreciation (Note 10) 4,794 91,253 35,935 8,481 - 140,463
Amortisation of equipment
under concession
agreements (Note 11) 4,174 17,087 - - - 21,261
Recognition/amortisation
of goodwill (Note 13) - 5,160 69,680 (6,188) - 68,652
Amortisation of intangible
assets - other (Note 12) - 6,596 4,647 4,190 - 15,433
Total depreciation and
amortisation 8,968 120,096 110,262 6,483 - 245,809
142
CS LOXINFO

Financial information by business segment: (Cont’d)
For the year ended 31 December 2006 (Baht ’000)
Satellite
uplink -
downlink Internet Media and Mobile Consolidation
services services Advertising Contents eliminations Group
Revenues from sales and
services 30,907 1,418,822 917,407 103,227 (9,987) 2,460,376
Share of net profit from
investments in an associate - 19 - - - 19
Cost of sales and services (22,125) (951,130) (343,216) (57,183) 8,553 (1,365,101)
Selling and administrative
expenses - (323,020) (443,383) (38,021) 1,434 (802,990)
Segment results 8,782 144,691 130,808 8,023 - 292,304
Operating profit 292,304
Other income 51,843
Loss on foreign exchange
(2,023)
Profit before interest 342,124
Interest expenses
(5,429)
Deferred income tax
(119,159)
Minority interest
(4,951)
Net profit for the year 212,585
Segment assets 28,439 1,819,219 662,099 110,411 (8,615) 2,611,553
Associate - 3,693 - - - 3,693
Total segment assets 28,439 1,822,912 662,099 110,411 (8,615) 2,615,246
Segment liabilities 3,709 567,658 202,751 41,308 (8,615) 806,811
Depreciation 4,785 93,881 34,558 6,901 - 140,125
Amortisation of equipment
under concession
agreements 4,174 29,300 - - - 33,474
Recognition/amortisation
of goodwill - 8,067 76,381 (2,912) - 81,536
Amortisation of intangible
assets - other - 4,921 4,137 3,674 - 12,732
Total depreciation and
amortisation 8,959 136,169 115,076 7,663 - 267,867
143 CS LOXINFO

Thailand is the home country of the Group and the
operating territory.
The Group is organised into the following business segments:-
• Satellite uplink-downlink services
• Sales and services relating to the Internet business
• Media and advertising
• Mobile contents
36 Dividend payment
At the annual ordinary shareholders meeting of the Company on 23 April 2007, the shareholders passed
a resolution to approve the dividend payment for the year 2006 of Baht 0.14 per share totalling Baht 87.50
million (2006: Baht 206.25 million). The Company paid the dividend on 4 May 2007.
At the Board of Directors’ meeting on 9 August 2007, a resolution was passed to approve the interim
dividend payment of Baht 0.20 per share totalling Baht 125.36 million. The Company paid the dividend on 5
September 2007 (2006: Baht 375.00 million). Grand total of dividend paid in 2007 was Baht 212.86 million
(2006: Baht 581.25 million).
37 Contingent Liabilities
In 2007, a debtor made a claim against a subsidiary in respect of an alleged default on an existing
agreement seeking damages from the subsidiary. The claim is currently being considered by the relevant courts.
After seeking appropriate legal advice, the opinion of the management of the subsidiary is that the resolution of
this claim will not give rise to any significant loss. As such, the subsidiary has not recorded any provision in
respect of this matter.
38 Subsequent events
a) Acquisition of ordinary shares of Shineedotcom Company Limited
On 31 January 2008, AD Venture Company Limited (“ADV”) acquired 2.4 million ordinary shares of
Shineedotcom Company Limited (“Shinee”) at Baht 6.29 per share, equivalent to 30% of the paid-up share
capital of Shinee, at a total price of Baht 15.1 million. As a result of this acquisition, the Company owns
100% share capital of Shinee.
b) Proposed dividend payment
At the Board of Directors’ meeting of the Company on 20 February 2008, the Board of Directors passed
a resolution to recommend to the annual general meeting of shareholders for the payment of dividends for
the year 2007, at the rate of Baht 0.20 per share. The proposed dividends must be approved by the
shareholders at their meeting.
144 CS LOXINFO

Remuneration of Auditors
Audit fees
Audit fee of Baht 1.94 million to the auditor of the Company, and the audit fee of Baht 2.1 million
to the auditor of its subsidiaries.
Other service fees
Acconting service fees for observation of destruction inventory totalling Baht 0.04 million to the
auditor of the Company. There is no commitment to pay for any services in respect of the agreements
in year 2007.
High
Ouality
Internet
145
CS LOXINFO

General Information
on Reference Persons
Security Registrar
Auditor
Thailand Securities Depository Company Limited
62 The Stock Exchange of Thailand Building,
Ratchadapisek Road, Klongtoey, Klongtoey, Bangkok 10110
Tel
Fax
: +66 (02) 229 2800
: +66 (02) 359 1259
Thailand Securities Depository Company Limited
Capital Market Academy Building, The Stock Exchange of Thailand
2/7 Moo 4, (North Park Project) Vibhavadi-Rangsit Road, Km. 27,
Tung Song Hong, Laksi, Bangkok 10210
Tel : +66 (02) 596 9000
Fax : +66 (02) 832 4994-6
Website : www.tsd.co.th
Mr. Prasit Yuengsrikul
Certified Public Accountant Registration Number 4174
PricewaterhouseCoopers ABAS Limited
15 th Floor, Bangkok City Tower, 179/74-80 South Sathorn Road,
Tungmahamek, Sathorn, Bangkok 10120
Tel : +66 (02) 286 9999, +66 (02) 344 1000
Fax : +66 (02) 286 5050
Website : www.pwc.com/thailand
High
Ouality
146
CS LOXINFO

Investor Information
Investors should contact the Investor Relations Department to request information about
CS LoxInfo or its subsidiaries and associate companies:
Investor Relations Department
CS LoxInfo Public Company Limited
973 President Tower 11 th Floor, Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330, Thailand
Tel : +66 (02) 263 8000 Ext. 5184
Fax : +66 (02) 263 8102
E-mail : ir@csloxinfo.net
Website : www.csloxinfo.com
CS LoxInfo is listed on the Stock Exchange of Thailand (SET)
SET ticker
Reuters
Bloomberg
CSL
CSL.BK
CSL TB
Foreign limit : 49%
Fiscal year ends : December 31
External Auditor : PriceWaterhouseCoopers ABAS Limited
Internet
147 CS LOXINFO

Contributions to Society
CS LoxInfo Promotes Smart Internet Use for the Youth
in the Smart Click Project
Committed to taking part in the development
of Thai society, CS LoxInfo has arranged activities
for social development in the “Smart Click”
project with an aim to encourage Thai youth to
use Internet creatively and appropriately.
Initiated by CS LoxInfo Public Co., Ltd., a leading Internet
service provider of Thailand, the Smart Click project has been
carried out for three years. In 2007, a variety of activities were
conducted seriously and consecutively, including publishing a
Smart Click Handbook for enhancing learning potential of Thai
youth in proper Internet use, which enables children and parents
to learn about Internet by themselves and suggests some nice
web sites to explore. In addition to the handbook, the web site
www.smartclick.in.th was developed under the concept of “Good
Brains and Good Work to Share,” where the young can exchange
their learning experience together. Moreover, in the Smart Click
Roadshow in 16 schools in Bangkok organized by CS LoxInfo,
Pol. Gen. Yanapol Yangyuen, Commander of the Bureau of
Technology and Cyber Crime, the Department of Special
Investigation (DSI), narrated real-life incidents about the
positive and negative sides of Internet and taught about
morals in the cyber world as part of efforts to make the
youth of the new generation grow up to become quality
citizens in the future. Besides, aimed at lending a hand to
children in need in the four parts of the countries, another
activity of the Smart Click is to provide support for schools
lacking funds as well as teaching and learning equipment. In
the past June, the company donated computers to Ban
Prasat Kwang Khao School and Ban Rueathong Khlongkham
School in Sri Saket province and invited an expert to give
knowledge about smart Internet use for parents and
children of these schools.
All the activities have been created in the hope
that they have contributed to the improvement of
the quality of life of Thai people so that the people
become strong and effective citizens in our society.

80 th DoGood Deeds
Anniversary
Computer Donation
Computer Training
for Our Farther
Funds Donation
Maketing Training
Do Good Deeds for Our Farther in the Smart Click Project
in Celebration of HM the King’s 80 th Anniversary
Professor Wongkulpat Sanidvongs na Ayudyha, M.D., Chairman of the Board of CS LoxInfo Public Company Limited, in cooperation with
Suan Dusit Rajabhat University, Hydro and Agro Informatics Institute and Lampang Non-Formal Education Centre conducted activities for promoting
learning for remote communities based on Sufficiency Economy philosophy. CS LoxInfo donated computers and funds as well as organised trainings
in computer knowledge, namely computer problems solving and Internet connection. In addition, there were trainings in marketing products such as
package designing and food processing, for youth and housewives at Ban Pa Miang School, Ban Sam Kha School, Wat Ban Paen Pongchai Education Centre
in Lampang province, and Hill Area and Community Development Foundation in Chiang Rai province.
These activities were held in celebration of His Majesty King Bhumibolûs 80 th Birthday Anniversary. Realising the importance of learning by means
of "Reaching, Understanding and Developing" which is essential to the development of the youth and nation, CS LoxInfo has determined to promote
learning and propagate information that benefits communities and young people in order that new ideas are generated and people can adapt them to suit their
own talents and the needs of their communities.
The good deeds we did in the passing year 2007 were a fitting tribute to His Majesty the King. In 2008, CS LoxInfo continues contributing to flourishing
Thai society. We hope that communities will take advantage of the provided knowledge. All of our efforts are to produce practical, concrete results that
are continuous and sustainable. This is in dedication to HM the King on the auspicious occasion of His 80 th Birthday Anniversary.
www.smartclick.in.th
149
CS LOXINFO

The Charitable
Project for Aids
Patients
The company has participated
in various public charities such
as the donation project named
Charitable Merit Pass Card of Phra
Udom Prachathorn (Dr. Alongkot of
Wat Phrabatnampu) for the aids patients
through Audiotex with Charitable Merit Hotline
at 1900-222-000 and 1900-222-200. This is an opportunity
for the Thai people to be involved in a charitable cause
around the clock whenever they wish.
Thailand YellowPages gives paper to
Recycle Paper Products Group
The company realizes the importance in resource
efficiency and of being environmentally friendly. The
company has handed over 4,000 old copies of Yellow
Pages to the Recycle Paper Products Group to support the
use of the recycled paper. The YellowPages paper can be
used to make various kinds of handmade products such as
baskets, boxes, flowers, key chains, etc. This increases the
value of the used paper very well and generates incomes
to the housewives group. The group’s products are very
well appreciated by Thai people and foreigners.
Thailand YellowPages support education
by awarding the best advertising design
The company is the leader in business media that
concentrates on advertising design which provides complete
information to the consumers so as to benefit them in their
decision making in buying the products and services.
Therefore, the company has realized the importance in
combining the creativity with advertising design; thus
joined hands with Bangkok Art Directors’ Association
(B.A.D.) in organizing the Thailand YellowPages Directory
Ad Design 2007 (TYPA 2007) Project to award the total
of Baht 150,000 in scholarships to the students who won
the advertising design in Thailand YellowPages. This is an
event that the company has been supporting for the second
year to encourage the students to use creativity and
imagination in the advertisings. This event has attracted
many students from different educational institutions as
seen from more entrants this year as compared to the year
2006.
Educational Support Project
WATTA supports its educational magazines for
schools that are lack of budget to purchase such
publications. Each week, there are 200 magazines being
distributed to over 100 schools and 150 magazines being
distributed to Wat Suan Kaew.
Learning Opportunity Project
WATTA is a means in searching funding sponsorship
for children who are chosen and certified by schools that
they are lack of learning opportunities by providing spaces
in Lok Wan Nee Newspapers everyday and Education
Today Magazines every week.
150
CS LOXINFO

Condominium for Street Dogs Project
by Wat Suan Kaew Foundation
WATTA is a center in collecting the donations and
donates money to street dogs through Wat Suan Kaew
Foundation under Phra Phayom Kalayano’s kind
responsibility in order to take care, give shelters and feed
the dogs that are sick, crippled and left at the temples.
Dhamma for Society Project
WATTA is a means in organizing various events to
encourage youths as well as general public to be a good
person and to have moral. For example, in order to
encourage politicians and public to pay attention to
politics in a moral way, WATTA in conjunction with
Phra Phayom Kalayano of Wat Suan Kaew organized
an innovation talk on “Moral Politic? and gave out the
Company’s books.
CS LOXINFO received an honor award
“Board of the Year Awards 2006/2007”
The Thai Institute of Director (IOD) in collaboration
with the Board of Trade of Thailand, the Federation of Thai
Industries, the Thai Bankers Association, the Listed
Companies Association, the Federation of Thai Capital Market
Organizations and the Stock Exchange of Thailand passed the
resolution to grant the prestigious award “Board of the Year
for Exemplary Practices” to CS LOXINFO Public Company
Limited to honor the Company’s Board of Directors for
outstanding performance of their duties in accordance with
good corporate governance practice for the year 2006/2007.
CS LOXINFO’s Project “Send Books
Spread Knowledge to the Library”
CS LOXINFO Public Company Limited joined the
32-year anniversary celebration of the Stock Exchange of
Thailand by delivering under the project “Send Books
Spread Knowledge To the Library” to pass on to school
libraries, public libraries and prison libraries that are under
the care of the Thai Library Association. This project was
organized to provide Thai people with better opportunities
to learn develop themselves from reading books in the
libraries which in turn improving their quality of life and
social as a whole.
The Company’s Board of Directors is regarded as the
representatives of the shareholders. It plays a significant role
in overseeing management’s performance in creating
maximum value for shareholders, taking into consideration
transparency and fairness to every stakeholder. The Board of
Directors performs its duties in accordance with good
governance guidelines which reflect efficiency and productivity
of the Company’s operations in a satisfactory manner.
151
CS LOXINFO

Glossary
ADSL
: Asymmetric Digital Subscriber Line, a broadband Internet
connection technology which utilizes existing copper telephone lines.
ADV
: AD Venture Company Limited
Audiotext
: A voice processing application that allows callers to listen to a menu
of option and then select the area they are interested in by pressing
the corresponding number on their telephone’s keypad.
Broadband
: A type of high-speed data transmission in which a single medium
(wire) can carry multiple signals at once.
CAT
: CAT Telecommunication Public Company Limited
Content Aggregator
: Someone who aggregates content and sells it.
Content Provider
: Someone who owns content and sell it.
CSP
: C.S. Satellite Phone Company Limited
CSS
: CS LoxInfo Solutions Company Limited
Dial-up
: Internet connection over a telephone line using 56 Kbps Modem.
IPSTAR
: High-speed two way broadband Internet connection via satellite
technologies.
iPTV
: Internet connection receiving data via satellite signal and sending
data over a standard telephone line.
ISDN
: Integrated Services Digital Network, an Internet connection
technology over digital telephone lines or normal telephone wires.
Java game : Games which are created for mobile phones by using Java Script.
Leased Line
: A permanent connection over a leased circuit or wire, which is
dedicated for Internet connection.
LoxServe
: Loxley Information Services Limited
NTC
: National Telecommunications Commission.
PA
: Point Asia Dot Com (Thailand) Company Limited
Ringtone
: Ringer sound or tone of telephone.
SBI
: Shin Broadband Internet (Thailand) Company Limited
SHIN
: Shin Corporation Public Company Limited
SHINEE
: Shineedotcom Company Limited
SingTel
: Singapore Telecommunication Limited
SSA
: Shin Satellite Public Company Limited
Thailand Corporate Pages(White pages) : Telephone directory for business/corporate clients listed by name.
The company or CS LoxInfo : CS LoxInfo Public Company Limited
TMC
: Teleinfo Media Public Company Limited
TOT
: TOT Public Company Limited
Transponder
: An electronic device, inside a satellite, that uses a satellite dish to
receive signals from the teleport and re-transmits to a ground teleport.
VDO Clip
: Animated images with sound.
VoIP
: Voice over Internet Protocol, voice data transmission by using a
protocol over the Internet.
Wallpaper
: Image on the screen.
Wap service
: A service which can be used to download straight onto a mobile phone.
WATTA
: Watta Classified Company Limited
Web portal
: A web site which is the center for customers to go to the other websites.
YellowPages
: Telephone 152 CS directories LOXINFO for products and services.

Additional and Adap tab le I nf or m ation in Annu al R e p or t 2 0 0 7 of C S L ox I nf o P u b lic c om p any L im ite d
Additiona l
I nf or m ation of th e ne w D ir e c tor
Na m e M r . K r i t t i y a V e e r a b u r u s
Ag e 39
Pr e s e n t Po s i t i o n D i r e c t o r
S h a r e h o l d i n g N o n e
R e l a t i o n s h i p w i t h M a n a g e m e n t N o n e
H i g h e s t E d u c a t i o n M B A i n F i n a n c e a n d I n v e s t m e n t
G o l d e n G a t e U n i v e r s i t y , S a n F r a n c i s c o , U S A
G o v e r n a n c e T r a i n i n g o f I O D -
E x p e r i e n c e M a r c h 20 0 8 P r e s e n t D i r e c t o r , C S L o x I n f o P u b l i c C o m p a n y L i m i t e d
20 0 6 P r e s e n t E x e c u t i v e V i c e P r e s i d e n t , D i r e c t I n v e s t m e n t
P h a t r a S e c u r i t i e s P u b l i c C o m p a n y L i m i t e d
20 0 5 J u l y 20 0 6 D i r e c t o r , D i r e c t I n v e s t m e n t
P h a t r a S e c u r i t i e s P u b l i c C o m p a n y L i m i t e d
20 0 2 M a y 20 0 5 D i r e c t o r , I n v e s t m e n t B a n k i n g
M e r r i l l L y n c h P h a t r a S e c u r i t i e s C o ., L t d .
20 0 0 N o v e m b e r 20 0 1 A s s o c i a t e , I n v e s t m e n t B a n k i n g , A s i a P a c i f i c
T e l e c o m & M e d i a G r o u p M e r r i l l L y n c h
( A s i a P a c i f i c ) L i m i t e d , H o n g K o n g
19 9 9 S e p t e m b e r 20 0 0 V i c e P r e s i d e n t , I n v e s t m e n t B a n k i n g
M e r r i l l L y n c h P h a t r a S e c u r i t i e s C o ., L t d .
19 9 8 F e b r u a r y 19 9 9 S e n i o r M a n a g e r , B u s i n e s s D e v e l o p m e n t
D e p a r t m e n t G r a m m y E n t e r t a i n m e n t P u b l i c
C o m p a n y L i m i t e d
19 9 7 J u n e 19 9 8 M a n a g e r , D i r e c t I n v e s t m e n t D e p a r t m e n t
A m e r i c a n I n t e r n a t i o n a l A s s u r a n c e C o ., L t d .
19 9 5 S e p t e m b e r 19 9 7 M a n a g e r , I n v e s t m e n t B a n k i n g D e p a r t m e n t
T h a i F u j i F i n a n c e a n d S e c u r i t i e s C o ., L t d .
I l l e g a l R e c o r d i n p a s t 1 0 y e a r s N o n e
Remark: M r . K r i t t i y a V e e r a b u r u s b e i n g a p p o i n t e d b y t h e B o a r d M e e t i n g N o . 3 / 2 0 0 8 o n M a r c h 7 , 2 0 0 8 a s t h e D i r e c t o r i n s u b s t i t u t i o n o f
M r . V a s a n t C h a t i k a v a n i j w h o r e s i g n e d o n D e c e m b e r 2 6 , 2 0 0 7
1/4

Pa g e 7 6 -7 7 R i s k F a c t o r s
Industry Risk
• R
i s k a r i s i n g f r o m u n f a i r p r i c i n g
A s t h e r e a r e s e v e r a l t y p e s o f T e l e c o m O p e r a t o r s t h i s m a y l e a d t o u n f a i r p r i c i n g c h a r g e d b e t w e e n o p e r a t o r s
c o n s e q u e n t l y s o m e o p e r a t o r s m a y g a i n a d v a n t a g e i n r e t a i l p r i c e o f f e r i n g s t o t h e c u s t o m e r s . T h i s c a u s e s
u n f a i r c o m p e t i t i o n . T h e C o m p a n y o v e r c o m e s t h i s b y d i r e c t n e g o t i a t i o n t o f i n d a m u t u a l s o l u t i o n w h i c h h a s
m u t u a l b e n e f i t s a m o n g o p e r a t o r s i n p a r a l l e l w i t h f o r m a l n e g o t i a t i o n p r o c e d u r e s s p e c i f i e d b y N T C .
• R
i s k a r i s i n g f r o m h i g h c o s t o f L e a s e d C i r c u i t s
A s t h e c o s t o f L e a s e d C i r c u i t s w h i c h t h e C o m p a n y l e a s e f r o m t h e o t h e r o p e r a t o r a t c u r r e n t m a r k e t p r i c e h a s
i n c r e a s e d a n d i t i s t h e m a j o r c o s t o f t h e i n t e r n e t s e r v i c e . C o n s e q u e n t l y , t h i s m a y c a u s e t h e C o m p a n y t o l o s s
t h e c o m p e t i t i v e a d v a n t a g e s . T h e C o m p a n y o v e r c o m e t h i s r i s k b y o b t a i n i n g t h e l i c e n s e t o o p e r a t e t h e L e a s e d
C i r c u i t s i n p a r a l l e l w i t h s e e k i n g t h e s t r a t e g i c p a r t n e r w h o c a n a g r e e t o a c h i e v e l o w e r c o s t o f L e a s e d C i r c u i t s
b u t c a n g a i n m u t u a l b e n e f i t i n l o n g t e r m .
C o m p e titio n Risk
• R
i s k a r i s i n g f r o m l o s i n g T M C s m a r k e t s h a r e
T h e t e l e p h o n e d i r e c t o r i e s b u s i n e s s i n T h a i l a n d h a d b e e n l i b e r a l i z e d s i n c e 20 0 5 , s o t h e r e m i g h t b e c h a n c e
t h a t n e w o p e r a t o r s m a y s h a r e t h i s m a r k e t . A l t h o u g h i n r e a l i t y t h e r e w e r e a f e w e r c o m p e t i t o r s p r i o r t o t h e
l i b e r a l i z a t i o n . H o w e v e r , t h e h u g e n u m b e r o f f r e e c i r c u t i o n t h e Y e l l o w P a g e s , t h e l o n g t e r m r e l a t i o n s h i p w i t h
c u s t o m e r s a n d i t s d a t a b a s e f o r m a s t r o n g b a r r i e r t o p r o t e c t i t s m a r k e t s h a r e . M o r e o v e r , T M C a l s o i n t r o d u c e d
i n t e g r a t e p l a t f o r m o f m u l t i m e d i a i .e . F l i p -C a l l -a n d C l i c k ( P r i n t , D A -C a l l C e n t e r a n d I n t e r n e t ) t o i m p r o v e
R O I f o r i t s a d v e r t i s e r s t o p r o t e c t i t s a d v e r t i s e r s f r o m s w i t c h i n g .
2/4

Ada p ta b l e
Pa g e 7 D i v i d e n d Po l i c y
• T
h e C o m p a n y s d i v i d e n d p o l i c y
T h e C o m p a n y s d i v i d e n d p o l i c y i s t o p a y d i v i d e n d n o l e s s t h a n 40 p e r c e n t o f n e t p r o f i t a f t e r t a x , i f t h e
f u n d i s n o t r e q u i r e d e l s e w h e r e a n d s u b j e c t t o t h e e c o n o m i c a n d f u t u r e p r o j e c t o f t h e C o m p a n y a n d t h e
s u b s i d i a r i e s a n d t h e p a y m e n t w o u l d h a v e n o s i g n i f i c a n t e f f e c t o n t h e r u n n i n g o f t h e C o m p a n y .
C h a n g e t o
T h e C o m p a n y s d i v i d e n d p o l i c y i s t o p a y d i v i d e n d n o l e s s t h a n 40 p e r c e n t o f n e t p r o f i t a f t e r d e d u c t i o n o f
a l l t a x e s , l e g a l r e s e r v e s a n d o t h e r r e s e r v e s s p e c i f i e d b y l a w a n d t h e C o m p a n y r e g u l a t i o n s o f t h e s t a n d a l o n e
p r o f i t a n d l o s s s t a t e m e n t , i f t h e f u n d i s n o t r e q u i r e d e l s e w h e r e a n d s u b j e c t t o t h e e c o n o m i c a n d f u t u r e
p r o j e c t o f t h e C o m p a n y a n d t h e s u b s i d i a r i e s a n d t h e p a y m e n t w o u l d h a v e n o s i g n i f i c a n t e f f e c t o n t h e
r u n n i n g o f t h e C o m p a n y .
• T
h e s u b s i d i a r i e s o f t h e C o m p a n y s d i v i d e n d p o l i c y
L o x l e y I n f o r m a t i o n S e r v i c e s C o m p a n y L i m i t e d , T e l e i n f o M e d i a P u b l i c C o m p a n y L i m i t e d , A D V e n t u r e
C o m p a n y L i m i t e d a n d W a t t a C l a s s i f i e d s C o m p a n y L i m i t e d i t s s u b s i d i a r i e s o f t h e C o m p a n y h a v e t h e
d i v i d e n d p o l i c y i s t o p a y d i v i d e n d n o l e s s t h a n 5 0 p e r c e n t o f n e t p r o f i t .
C h a n g e t o
L o x l e y I n f o r m a t i o n S e r v i c e s C o m p a n y L i m i t e d , T e l e i n f o M e d i a P u b l i c C o m p a n y L i m i t e d , A D V e n t u r e
C o m p a n y L i m i t e d a n d W a t t a C l a s s i f i e d s C o m p a n y L i m i t e d i t s s u b s i d i a r i e s o f t h e C o m p a n y h a v e t h e
d i v i d e n d p o l i c y i s t o p a y d i v i d e n d n o l e s s t h a n 40 p e r c e n t o f n e t p r o f i t a f t e r d e d u c t i o n o f a l l t a x e s , l e g a l
r e s e r v e s a n d o t h e r r e s e r v e s s p e c i f i e d b y l a w a n d t h e s u b s i d i a r i e s r e g u l a t i o n s o f t h e s t a n d a l o n e p r o f i t a n d
l o s s s t a t e m e n t , i f t h e f u n d i s n o t r e q u i r e d e l s e w h e r e a n d s u b j e c t t o t h e e c o n o m i c a n d f u t u r e p r o j e c t o f t h e
s u b s i d i a r i e s a n d t h e p a y m e n t w o u l d h a v e n o s i g n i f i c a n t e f f e c t o n t h e r u n n i n g o f t h e s u b s i d i a r i e s .
C o r p o r a t e G o v e r n a n c e
Pa g e 20 C o rp o ra te G o v e rna nc e P o l ic y
I n t h e B o a r d o f D i r e c t o r s M e e t i n g N o . 3/2 0 0 8 o n M a r c h 19 , 20 0 8
C h a n g e t o
I n t h e B o a r d o f D i r e c t o r s M e e t i n g N o . 4/2 0 0 8 o n M a r c h 19 , 20 0 8
Pa g e 26 5 . 1 A udit C o m m itte e ( A C )
d u r i n g B o a r d M e e t i n g N o . 3/2 0 0 8 o n M a r c h 19 , 20 0 8
C h a n g e t o
d u r i n g B o a r d M e e t i n g N o . 4/2 0 0 8 o n M a r c h 19 , 20 0 8
3/4

Pa g e 3 2 10 . T h e P e rf o rm a nc e A sse ssm e nt o f th e B o a rd o f D ire c to rs
I n t h e B o a r d M e e t i n g N o . 3/2 0 0 8 o n M a r c h 19 , 20 0 8
C h a n g e t o
I n t h e B o a r d M e e t i n g N o . 4/2 0 0 8 o n M a r c h 19 , 20 0 8
Pa g e 3 6 3 . Risk M a na g e m e nt
I n t h e B o a r d M e e t i n g N o . 3/2 0 0 8 o n M a r c h 19 , 20 0 8
C h a n g e t o
I n t h e B o a r d M e e t i n g N o . 4/2 0 0 8 o n M a r c h 19 , 20 0 8
Pa g e 3 9 E x p e rie nc e o f M r. V iro j T o c h a ro e nv a nith
20 0 5 P r e s e n t D i r e c t o r , T h a i - A m a d e u s S o u t h E a s t A s i a C o ., L t d .
20 0 4 P r e s e n t D i r e c t o r , C S L o x I n f o P l c .
C h a n g e t o
20 0 5 P r e s e n t D i r e c t o r , T h a i - A m a d e u s S o u t h E a s t A s i a C o ., L t d .
D i r e c t o r , C S L o x I n f o P l c .
4/4