บริษัท ไดนาสตี้เซรามิค จำกัด (มหาชน) - Dynasty TileTop

บริษัท ไดนาสตี้ เซรามิค จำกัด (มหาชน)

Contents 

| สารบัญ 

ญ 

ว ิสัยทัศน์ 

พันธกิจ 

ขององค์กร 

3 

Vision & Mission 

ข ้อมูลบริษัท 

4 

Company Profile 

สารจากประธานกรรมการ 6 

Message from the Chairman 

รายงานคณะกรรมการตรวจสอบ 8 

Report of the Audit Committee 

โ ครงสร้างองค์กร 

10 

Organization Chart 

ค ณะกรรมการบริหารบริษัท 

12 

Board of Directors 

การดา 

เ นินการด้านความปลอดภัย 

สิ่งแวดล้อมและสังค 

ม 

22 

Safety, Environment, and Society 

ล ักษณะการประกอบธุรกิจ 

36 

Nature of Business 

ก ารเปลี่ยนแปลงที่ส 

า ค ัญในรอบปีที่ผ่านม 

า 

38 

Significant Changes in the Past Year 

ส ภาวะอุตสาหกรรมและการแข่งขัน 

40 

Industrial Conditions and Competition 

แ ผนงานและกลยุทธ์ในปี 

2554 

42 

Plans and Strategies for 2011 

ป ัจจัยความเสี่ยง 

44 

Risk Factors 

แ ผนภูมิประกอบธุรกิจของบริษัทฯ 

46 

Organization Structure 

ข ้อมูลส 

า ค ัญทางการเงิ 

น 

47 

Financial Hilight 

โ ครงสร้างการถือหุ้น 

48 

Shareholding Structure 

ค ่าตอบแทนกรรมการและผู้บริหาร 

51 

Renumuration for the Directors and Management 

โ ครงสร้างการบริหารงาน 

54 

Management Structure 

บ ริษัทย่อยและบริษัทในเครือ 

62 

Subsidiaries 

การกา 

ก ับดูแลกิจกา 

ร 

63 

Corporate Governance 

ก ารควบคุมภายใน 

67 

Internal Controls 

น โยบายการจ่ายเงินปันผล 

69 

Dividend Payment Policy 

ร ายการระหว่างกัน 

70 

Related Transaction 

ส รุปผลการด 

74 

Summary of Operating Results and Financial Analysis 

ร ายงานของผู้สอบบัญชีรับอนุญาตและงบการเงิน 

78 

Auditor’s Report and Financial Statements

3 

Vision 

“ Leader of Tile Business 

with outlets throughout 

Thailand ” 

Mission 

1. To produce tiles with creative production process that meets the international standard at the 

lowest cost for quality products at reasonable prices. 

2. To serve our customer with wide variety of tiles at reasonable prices, easy access for customers 

with our outlets throughout Thailand. Services and continuity of products is guaranteed. 

3. To have high dividend payout. 

4. To create stability for employees with: 

• Total management and creative idea. 

• Course training. 

• Key capabilities development. 

• Cultural development. 

• Networking development. 

5. To have customers’ products and services satisfaction and supporting majority of customers 

who have lower income. To be fair with both customers and suppliers. 

6. To have Corporate Social Responsibility.

4 

COMPANY PROFILE 

Company Dynasty Ceramic Public Company Limited (DCC) 

Company registration Bor.Mor.Jor. (PCL) 321 (0107537000742) 

Established 1 August 1989 

Listing on the SET 

3 January 1992, trading under the abbreviation “DCC” under the 

construction materials group. 

Nature of business 

Core business 

Manufacturer and distributor of ceramic floor and wall tiles under 

“Dynasty”, “Tomahawk”, “Jaguar”, “Nava” brand. Also, it purchases the 

ceramic floor, wall and decorative tiles from Tile Top Industry Public, 

Co., Ltd., which is one of the subsidiaries of the Company. 

Secondary core 

Nationwide distributor through its subsidiaries: Pick & Pay Co., Ltd., 

Muangthong Ceramics business Co., Ltd., and World Wide Ceramics 

Co., Ltd. In addition, Dynasty Ceramic is order other related products 

such as Sanitary wares and other related products such as Tile grout 

for sale. 

Registered capital 408,000,000 Baht, comprising 408,000,000 shares with a par value of 1 

Baht per share, issued and fully paid-up 

Subsidiary 

The Company has four subsidiaries: Tile Top Industry Co., Ltd., Pick 

and Pay Co.Ltd., Muangthong Ceramic Co., Ltd., and World Wide Ce 

ramic Co., Ltd, in which it holds an equity stake of 96 percent of the 

registered and paid-up capital. 

Head Office Of DCC Address 37/7 Suthisarn-Vinijchai Road, Samsen-Nok Sub-district 

And Its’ Subsidiaries HuayKwang District, Bangkok10310. Tel. 0-2276-9275-81 

Fax. 0-2276-0313-17 

Homepage 

http://www.dynastyceramic.com

5 

DCC Factory Address 54/8 Moo3, Suwannasorn Road, Koke Yae Sub-District, Nong 

Kae District, Saraburi Province 18230 Tel. 036-379023-4 

Fax. 036-371024 

Tile Top Factory 

Address 3/2 Moo 8, Paholyothin Road, Nong Khai Nam Sub district, 

Nong Khae District, Saraburi Province 18140 Tel. 036-371815 

Fax. 036-371111 

Subsidiary Outlets 

By the end of 2010, there are a total of 177 factory outlets located 

nation-wide in forms of factory outlets. 

Registrar 

Thailand Securities Depository Co. Ltd. The Stock Exchange of 

Thailand Building, 62 Ratchadapisek Road, Klongtoey Sub-district, 

Klongtoey District, Bangkok 10110 Fax: +66 2 654 5599 

Telephone: +66 2 229 2800 ,+66-2-654-5599 

Auditors 

Mr.Jadesada Hungsapruek Certified Public Accountant No.3759 or 

Miss Wimolsri Jongudomsombut Certified Public Accountant No.3899 

or Miss Kannika Wipanurat Certified Public Accountant No.7305. 

From Karin Audit Co. Ltd. 

138 Boonmitr Building 6th Fl. Room B1,Silom Road, 

Kwang Suriyawong, Khet Bangrak, Bangkok 10500 Thailand 

Legal Counsel 

Mr. Payab Khumarj 

49/15 Moo 1 Bangratug District Sampran Nakorn-Prathom 

Total Capacity 

51 Million Squaremetre/Year

6 

Message 

from the President 

During 2010, Thailand had many effects to the 

economy, such as the politic unrest which halted the 

economy in Bangkok. Many severe weather conditions 

throughout the year namely the drought in second 

quarter and the flood in third and fourth quarter. Not 

to mention the continuous of Baht depreciation. These 

effects mentioned above will also continue to affect the 

economy in 2011. However, the company has managed 

to maintain its growth with a good dividend payout. 

2010 Performance 

In the first quarter of 2010, the company had 

21% growth in revenue from the previous year. Even 

with the political crisis, the company had made a new 

sales record in March at 722 million Baht. This proved 

that political crisis does not affect the company’s 

revenue. In the second quarter, with the drought, 

the company had 16% growth in revenue from the 

previous year. One of the biggest floods in Thailand 

occurred during third and fourth quarter which had 

halted the company’s growth where the third quarter 

resulted in zero growth. In addition to the flood, the 

fourth quarter is also the harvest season. From those 

events, the company’s growth resulted in 11% from 

the target of 15%. However, for the year 2010, the 

company’s revenue was 6,513 million Baht with the net 

profit of 1,175 million Baht or 18% increase from the 

previous year. The gross margin also increased from 

42.5% to 44.3% and the company was able to pay out 

100% of the net profit or a total of 2.88 Baht per share. 

Production investment and development 

For the past three years, the company’s 

revenue has been steadily growing without any 

additional of new kilns. Because of the capacity 

expansion can be done easily within three months, 

the company’s objective is to expand the point of sale 

before expand the capacity. The company’s policy is 

to have kilns operating at the most efficient rate with 

no idle capacity as we have seen that the capacity 

utilization rate is always above 92%. 

In the beginning of 2010, the company was 

planning to modify and add 4 new kilns, but the 

company only modifies and adds 3 kilns because 

of the flood. The flood slowed down the market so 

we extended the 4th kiln to 2011. In conclusion, our 

capacity expansions plan as follows: 

• January 2010 1 new kiln at Tile Top 

Factory. 

• March 2010 modified 1 kiln at Tile Top 

Factory. 

• July 2010 1 new kiln at Dynasty Factory. 

• January 2011 1 new kiln at Tile Top 

Factory. 

• July 2011 1 new kiln at Tile Top Factory. 

At the end of 2010, the company has 

capacity of 51 million sqm, 58 million sqm in January 

2011, then 61 million sqm in July 2011. 

In addition to capacity expansion, the company 

also researched on producing grout in 4Q10. The 

capacity is now at 2,700 boxes per month or 10% 

of the sales. In 2011, the company will be expanding 

the capacity of grout. The new capacity should 

cover at least 40% of the sales. The company also

continuously researches more on cost saving for 

producing grout. 

The company is still continuously researching 

other projects, namely, rectified tiles project, high cost 

chemicals replacement, etc. 

Marketing 

In 2010, the company has a marketing campaign 

under “Dynasty Tile Top Becomes No. 1” since 

April 2010 until April 2011. The company promotes 

campaign via radio, local newspaper and also event 

cars. Every outlet will have promotion tiles and for 

every 1,000 Baht sales, the customer will get a 

coupon for chances to win the prize. 

Corporate Social Responsibility 

During 2010, the company has been participating 

in many CSR projects. The company had 

begun CSR project since 2009. This year, the 

company had given both floor tiles and wall tiles also 

managed every construction in 14 upcountry schools 

from 3 schools last year. The company also had a 

soccer match with the people in the community as 

well. The event was filled with happiness for both giver 

and receiver which we think it was very successful. 

In 2011, the company will also continue to “give” to 

upcountry schools as usual. 

In addition to building schools, the company 

also helped many flood victims. Employees had 

prepared dry foods, water bottles, medicines along 

with other consumables in a bag for a total of more 

than 10,000 bags to give away to the flood victims. 

The management team and employees also donated 

some money in a total over 6 million baht with the 

191 Police. 

In 2010, the company has a total net profit 

of 1,175 million Baht or 2.88 Baht per share from 

1.00 Baht par value. The board of committee 

announced 2.88 Baht or 100% for dividend payout and 

transactions will be finished by 4th of May 2011. The 

company has already paid up 2.30 Baht of the amount 

during 2010; therefore, 0.58 Baht is to be paid. 

The company has received Forbes: 200 Best 

Under a Billion for 2010, which is the third time from 

7 

Forbes. The company also received 200 Best Public 

Company from Financial and Banking Magazine. In 

addition to that, the company has been included in 

SET 50 starting in January 2011. 

The management committee greatly 

appreciates every shareholder, supplier, employee and 

customer who has been continually supporting the 

company. Lacking any part stated will not result in 

the successful of the company we are today. As a 

representative of the company, I would like to say 

thank you to every part of this success and stable 

growth of the company. We will continue to improve 

our performance and keeping this success as always. 

Mr.Roongroj Saengsastra 

Chairman

8 

REPORT OF THE AUDIT COMMITTEE 

To the shareholders of Dynasty Ceramic Public Company Limited 

The Audit Committee of Dynasty Ceramic Public Company Limited was elected by the Board Of 

Director. The committee consists of 4 Independent Directors with the Assistant Managing Director – Branch Marketing (In 

charge of Internal Audit Office) acted as The Secretary of the Audit Committee. All members of the Audit Committee are 

qualified according to the Audit Committee Charter approval by the Board of Director and in accordance with the Stock 

Exchange of Thailand’s Best Practice Guidelines 2010. The Audit Committee conducted a total of four meetings in 2010, 

and appropriately discussed and shared opinions in one of the meeting with the external auditors. This can be summarized 

as follows: 

Audit Committee 

Position 

Attend the Meeting / Total Meeting (Time) 

ป 2010 ป 2009 

1.General Yuthasak Sasiprapa Chairman 4/4 4/4 

2.Pol.Gen.Patcharavat Wongsuwan Committee members 4/4 2/4 

3.Mr Surasak Kosiyajinda Committee members 4/4 4/4 

4.Mr Yothin Juangbhanich Committee members 4/4 4/4 

5.Miss Sonthaya Yaowalee Secretary 4/4 4/4 

The Audit Committee No.4 is qualified in both experience and knowledge to review the Financial Statement 

of the company. 

The Audit Committee sometimes appropriately discussed and shared opinions with senior management and external 

auditors on related matters. This can be summarized as follows: 

1. Reviewed the Company’s’ audited quarterly and annual financial statements of year 2010, and discussed 

with external accounting auditor and management on the righteousness and completion of the financial 

statement to ensure that they were prepared in compliance with generally accepted accounting standards 

with adequate disclosure of the financial information 

2. Reviewed the Internal Control System in its evaluation of the adequacy and effectiveness of the 

Company in achieving its goals. The Audit Committee reviewed the Internal Audit Report for accordingly to the 

evaluation report committed by the internal control section and the auditor to ensure that the company had 

working and operational systems which are effective enough to protect and prevent risks which could happen 

to the company, and that the approval of transactions and budget of the operational sector is in agreement 

with the approval policy of the company 

3. Reviewed the compliance with Securities and Exchange laws, regulations of the Stock Exchange of 

Thailand, and other relevant laws; for instance, Securities and Exchange acts, regulations of the Securities and 

Exchange Commission, the Public Company Act, and business commitments with third party agreements. The Audit 

Committee came to the conclusion that the Company had complied with all applicable regulatory requirements. 

4. Considered the nomination and appointment of the external auditor and the annual audit fee for 2011 

to seek approval from the Company’s Board of Directors for the 2011 General Shareholders’ Meeting. After considering 

the auditors’ performance, independence, and appropriateness of the auditing fee, the Audit Committee appointed 

Mr.Jessada Hangsapruck, Certified Public Accountant, Registration Number 3759, or Miss Vimolsri Jongudomsombat 

Certified Public Accountant, Registration Number 3899, or Miss Kannikar Vibhanurat Certified Public Accountant, Registration 

Number 7305 from Karin Auditing Company Limited the Certified Public Accountant of the Company for 2011. The total annual

9 

audit fee for 2011 is 1,945,000 Baht. The Audit Committee had comments on the auditor appointment as followed: 

• The auditor independently performed the tasks with knowledge, proficiency, and suggested on 

internal control system, and risks 

• The proposed fee is at appropriate rate, which is equal to that of 2010. The company does not pay 

for other service to the auditor, the auditor’s company, person, or company related to the auditor and the 

auditing company which the auditor is working for. 

• According to the regulations of Office of the Securities Exchange Commission and the Stock 

Exchange of Thailand, the registered companies have to make the change in the auditor of the company 

in every 5 financial statements. If the auditor is appointed the company’s auditor for 2011, it will be 

the second time of the auditor. 

• The auditor has no connection with the company and its subsidiaries. 

5. Reviewed related transactions executed by the Company with related parties which were considered as 

having a conflict of interest, and reviewed the sufficiency of the disclosure of these transactions in accordance with the 

requirements of the Stock Exchange of Thailand. The Audit committee cameto the conclusion that the aforementioned 

transactions were conducted by Management fairly and priced with a view to giving the utmost benefit to the Company at an 

arm’s length basis, and that they were accurately and adequately disclosed. 

6. Reviewed Risk Management –The Audit Committee had reviewed the operation information and Internal 

Control System by interrogating The Accounting Procedure and Reviewed Audit Plan every quarter. 

7. The Audit Committee had self- assessment in accordance with Best Practice Guidelines for the audit committee 

on its composition, meetings, activities, and dealings with Management and the external auditor. The Audit Committee came to 

the conclusion that its scope and performance were consistent with Best Practice Guidelines to effectively aid the fulfillment of 

good corporate governance. 

8.The minutes of meeting should be written and proposed to the board of director after every meeting, so that 

the company’s performance went on accordingly to the Best Practice of the Audit committee. 

In conclusion, the Audit committee performed its task entirely as stated in the charter of the audit committee 

approved by the company’s board of director in accordance with the act of the Stock Exchange of Thailand. 

The Audit committee gave judgment that the company had financial transactions stated, the related transactions 

happened during the year disclosed accurately and appropriately. The executive directors operated the company with an 

ethical mind, and had the intention of performing duties professionally to achieve the Company’s goals under an effectively 

concise and continual Risk Management. The company had an accurate, reliable management system, as well as continually 

improved the operational system to be at better quality, and suit the business’ environment. 

On Behalf Of Audit Committee 

Dynasty Ceramic Public Company, Limited 

General 

(Yuthasak Sasiprapa) 

Chairman of the Audit Committee 

February 24, 2011

Board of Di 

Chairma 

Mr.Roongroj Sa 

Preside 

Mr. Sanchai J 

10 

ORGANIZATION CHART 

Executive Vice Pre 

resi sdent 

(out 

let maketing) 

Miss 

Sontaya Yaowalee 

Exec 

ecutive Dire 

ctor 

(Marketing) 

Mr.Chana Suthiwangcharoen 

Vice President (Accounting) 

Miss Somruethai Boonyarit 

VP (Branch Accounting) 

Miss Porntip Pengtako 

VP (Outlet Marketing) 

Miss Sontaya Yaowalee 

VP (Admin) 

Mr. Monrak Saengsastra 

VP (Marketing) 

Mr.Jaruj 

uate Tritawil 

VP-IT Investor 

Mr. Marut Sa

11 

of Director 

airman 

j Saengsastra 

Company’s Secretary 

Miss. Cattleya Saengsastra 

Company’s Secretary Assistant 

Mr. Marut Saengsastra 

sident 

hai Janejarat 

Seni nor Vice President 

(Production) 

Mr 

.Jaruwat Tritawil 

Senior Vice President 

(Factory Admin) 


Senior Vice President 

(Technic) 

Mr. Sutee Boonnag 

estor Relations 

t Saengsastra 

VP (Engine 

neerin 

ering) 

DCC / TTOP 

Mr. Somnuek Suriyakul 

VP (Production) 

TTOP 

Mr.Jar 

uwat Tritawil 

VP (Production) 

DCC 

Mr.Chava 

lit Pidthong 

VP (Factory Admin) 

Mr Arun Natchayangkoon 

VP (Technic) 

Mr. Sutee Boonnag

12 

Board of Directors 

Name 

Mr.Roongroj Saengsastra 

Position 

Chairman 

Age(Year) 61 

Highest Education 

Bachelor degree, Accounting, Chulalongkorn University 

Training From IOD 

None 

% Of Share Holding Holding 100,000,000 shares ( 24.51%) at Jan 31 , 2011 

Family relationship among executives Miss Cattleya Saengsastra’s brother 

Other Current Position 

Listed Company 

None 

Non Listed Company 4 Companies 

• Chairman of TileTop Industry Company Limited, 

• Chairman of Pick and Pay Company Limited, 

• Chairmant of Muang Thong Ceramic Co.Ltd. 

• Chairman of World Wide Ceramic Company Limited 

Previous 5 years experience 

2000-2007 - President-Dynasty Ceramic PCL 

2000-2004 - President of TileTop Industry PCL. 

2005-Present 

- Chairman of Pick and Pay Company Limited, 

- Chairman of Muang Thong Ceramic Co.Ltd. 

- Chairman of World Wide Ceramic Company Limited 

Mr. Roongroj Saengsastra 

Chairman

13 

Name 

Mr. Sanchai Janejarat 

Position 

President 

Age(Year) 61 


Bachelor degree, Engineering,Chulalongkorn University 


Directors Accreditation Program (DAP) No.54/2006 

% Of Share Holding 342,000 shares ( 0.08 %) at Jan 31 , 2011 

Family relationship among executives None 



None 


• President : TileTop Industry PCL. 

• Director : Pick and Pay Company Limited, 

• Director : Muang Thong Ceramic Co.Ltd. 

• Director : World Wide Ceramic Company Limited 


2002-2008 Executive Director (Production) Dynasty Ceramic Public Co.,Ltd. 

2000-2008 Executive Director (Production) TileTop Industry PCL 

Mr. Sanchai Janejarat 

President

14 

Name 

General Yutthasak Sasiprapha 

Position 

Independent Director & Chairman of Audit Committee 

Age(Year) 74 


Command and General Staff College, 

Chulachomklao Royal Military Academy 

Chief of Joint Staff School - 48 

National Defence College - 33 

Training From IOD Directors Accreditation Program (DAP) No. 56/2006 

Capital Market Academy Leadership Program ( Class 11 ) 

% Of Share Holding None 




1 Company 

• PTT Chemical Public Co.,Ltd.-Advisor 


• Vice President Pan Asia Planner Co.,Ltd. 

• Vice President GPP International Co.,Ltd 

• President of the Olympic Committee, 


2001-Present : President of the Olympic Committee 

2005-2007 Director : PTT Chemical Public Co.,Ltd 

General Yutthasak Sasiprapha 

Independent Director & Chairman of Audit Committee

15 

Name 

Pol.Gen. Patcharavat Wongsuwan 

Position 

Independent Director & Audit Committee 

Age(Year) 61 


Bachelor Degree Police Academy 

Master degree, Art Social, Kasetsart University 


None 





None 

Non Listed Company 1 Company 

• Director : TileTop Industry PCL. 

Previous 5 years Experience Year 2008-2009 Commissioner General-Royal Thai Police 

Year 2002-2007 Deputy Commissioner General,Royal Thai Police 

Pol.Gen. Patcharavat Wongsuwan 

Independent Director & Audit Committee

16 

Name 

Mr. Chaiyasith Viriyametakul 

Position 

Director 

Age(Year) 62 


Bachelor degree, Engineering, Chulalongkorn University 

National Defence College (NDC.4414) 

Training From IOD Director Accreditation Program (DAP) 20/2004 

- Increasing Your Corporate Value Through Effective 

Communication Year 2003 

- Risk Management From IOD 

% Of Share Holding 17,545,000 shares or 4.30 % at Jan 31 ,2011 

Family relationship among executives 



None 

1 Companies 

• President of Vibhavadee Hospital 

Non Listed Company 

8 Companies 

• Vice Chairman of BOD Chao Paya Hospital Public Co.,Ltd 

• President of Thai Rim Tower Associated Co,,Ltd 

• Executive Director Vibharam Co.,Ltd 

• Executive Director Patanakarn Vejchakit Co.,Ltd. 

• Director-Sereerak Hospital Co.,Ltd. 

• Managing Director Thepharak Pattanakarn Co.,Ltd. 

• Director-Princeton Park Suite Co.,Ltd 

• Director-Pitakdham Development Co.,Ltd 

Mr. Chaiyasith Viriyametakul 

Director

17 

Name 

Mr. Suvit Smarnpanchai 

Position 

Director 

Age(Year) 63 


High-School,Charnvit Wittaya School 


% Of Share Holding 12,892,000 shares or 3.16 % at Jan 31 ,2011 




None 


• Managing Director-Ekasithpun Co.,Ltd. 

Previous 5 years Experience 

Present : Advisor of The Audit Committee and Monitoring 

The Police Adminisration of Ratchburana police Station 

2000-Present : Managing Director-Ekasithpun Co.,Ltd. 

Mr. Suvit Smarnpanchai 

Director

18 

Name 

Mr.Yothin Juangbhanich 

Position 


Age(Year) 62 


Master Degree(MBA) from University of Santa Clara,USA 






1 Company 

• Independent Director & Chairman of Audit Commitee-Tanasiri Group PCL 

Non Listed Company None 


Head of Management System Development - Revenue Department 

Regional 12 Revenue Chief 

Mr. Yothin Juangbhanich 


19 

Name 

Mr. Surasak Kosiyajinda 

Position 


Age(Year) 68 


Bachelor degree in Law, Tammasart University 




Other Current Position: 


1 Company 

• Director / AJ PLAST Public.Co.Ltd. 


• Director / UNITED FOOD Public.Co.Ltd. 


2000-2010 Jutturatham Law Office 

Mr. Surasak Kosiyajinda 


20 

Name 

Mr. Chana Suthiwangcharoen 

Position 

Director 

Age(Year) 63 


Bachelor degree,Communication Arts, Chulalongkorn University 







None 


• Executive Director (Marketing) TileTop Industry PCL. 




Previous 5 year Experience 

Director & Vice President (Marketing) Dynasty Ceramic Public Co.,Ltd. 

TileTop Industry PCL 




Mr. Chana Suthiwangcharoen 

Director

21 

Name 

Miss. Cattleya Saengsastra 

Position 

Executive Director and Company’s Secretary 

Age(Year) 63 


Bachelor degree Accounting, Chulalongkorn University 

Management Development Program 

J.J Kellogg , North Western University 



% Of Share Holding 11,000,000 shares(2.7%) at Jan 31 ,2011 

Family relationship among executives Mr.Roongroj Saengsastra’s Sister 



1 Companies 

• Independent Director & Chairman of Audit Committee 

S&P Syndicated Public Co.,Ltd. 


• Executive Director and Company’s Secretary,TileTop Industry PCL 




Previous 5 year Experience 




Miss Cattleya Saengsastra 

Executive Director and Company’s Secretary

22 

Operations 

in Safety, Environment, and Society

Safety 

In 2010, the company has been focusing on 

developing many aspects of the staff’s knowledge. Safety 

is one of the company’s developments; improving the 

working condition and ambience to be safe for the staff 

of the company with the belief that any accident, injury 

or illness caused by the job can be prevented by the 

cooperation from all of the organization’s members. The 

company has encouraged many activities concerning 

safety in the organization to motivate the staff’s 

consciousness such as 

1. The fire drill training program 

2. Organizing Safety Week to reduce the 

accident 

3. Acknowledging the staffs to protect 

themselves and their family from HIV, TB, as 

well as other contagious diseases 

4. The White Factory Campaign 

5. The Watch Out Project which takes care of 

the staffs encountered any accident 

6. Six Zero Project 

• Zero Accident 

• Zero Break-Down 

• Zero Complaint 

• Zero Loss 

• Zero Mistake 

• Zero Waiting Time. 

These projects were organized not only to 

reduce the accident but also to develop and improve 

the staffs’ quality of lives. The result of the company’s 

endeavor to lower the accident happened while working 

is that the accident statistic continually reduces. Every 

employee does play a vital role to create good working 

ambience, which also generates safety and consciousness 

in increasing efficiency in working as well as quality 

of life. 

23 

Environment 

We have taken environment and human resource development 

as ones of the company’s responsibilities. So, the company 

has been emphasizing on the environmental control in the 

manufacturing system since last year in many aspects. 

1. Evaluating the quality of the air of the surrounding area 

of the plant to ensure that the air released from the factory cannot 

affect the environment and the community around the factory 

2. Evaluating noise pollution, dust, and chemical which are 

all standardized 

3. Building the waste-water treatment system to treat and 

recycle the water which help reduce the water resource 

4. Recycling the waste materials and the fragmented tiles, 

and keeping those which are not recyclable in the specifically safe 

place in the factory. 

Additionally, the company has sympathized the 

victims of inundations and provided them dried food, 

drink, medical supply, consumer goods, and more 

than 10,000 relief bags to distribute to the suffered 

community. Moreover, the company executives and 

employees have contributed their own money of about 6 

million in total in cooperation with the patrol 191.

24 

Dynasty Ceramic Public Company, Limited 

Operations in Safety, Occupational Health, and Working Ambience 2010 

Objectives: 1. To create the means of operations in safety, occupational health, and working ambience. 

2. To create the directions in the development of sustainable safety in working according to all the laws concerning safety at work. 

By: The committee of safety, occupational health, and working ambiences 

targeted length of operations (Quarter) 

No. Plans and Activities 

1 2 3 4 

Operators Responsible Sectors 

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 

1 Personnel Development 

1.1 New staff Orientations 

• Safety regulations and duties 

• Basic knowledge of fire extinguishing and PPE usage 

• Occupational illnesses, illnesses and drugs 

1.2 Occupational health committee's development and field trip 

• National safety-at-work week / 

• Plant and company visits 

1.3 Potential development seminar on safety 

• Supervisors / operational staffs / committees 

• Seminar on HIV, and TB / / 

• Department of Skill Development's seminar 

Occupational health 

officers 


officers, and the 

committee 


officers 

Human resources 

department, head of each 

department, and 

operational staffs 

Head of each department, 

and operational staffs 


department, head of each 

department, and 


2 Inspection, Control, Improvement, and Protection 

2.1 Installation of basic fire extinguishers / 



2.22 Inspection on electricity system, electrical appliances, and 

Electricians and 

/ 

transformers 

occupational health 

2.3 Inspection on buildings and signboards / 


department and 

2.4 Inspection on working ambiences (noise, light, temperature, 


/ 

chemical), and improvement 


2.5 Examination, inspection, and improvement of PPE 



2.6 Suggestion, and improvement of security system 



2.7 Improvement of safety signs according to legal standard 



2.8 Suggestion of additional safety equipment at work (cards, 


tools, safety equipments) 


3 Safety Campaign 

3.1 Campaign on encouraging the use of PPE 


officers and the 

3.2 Promoting on board exhibition: 

• Information on social security, workers' compensation fund, etc. 



• Safety policies 

committee 

Head of each department 

Committee 

Committee 


and officers of Saraburi's 



Administrative and human 

resources departments 



Head of inventory 

department 




• Accidents' statistics 

3.3 Activities and projects 

• "Rewarding Creativity" campaign 

• "365 days 0 accident" campaign 

• "White Factory" campaign 

3.4 Organizing safety week at work of 2010 (16-18/9/10) / 

3.5 Making handbook concerning safety at work 

3.6 Campaign on safety out of work such as driving safely, etc. 



committee 








resources departments 





resources departments

25 

4 Routine Working 

, p 

4.1 Monthly occupational health committee meeting 

• Safety tour on first Thursdays of every month 9-12am 14 4 4 1 6 3 1 5 2 7 4 2 

• Occupational health committee meeting 1.30-4.00pm 14 4 4 1 6 3 1 5 2 7 4 2 

4.2 Monthly Divisional safety inspection by head of each 

department 

4.3 Implementation of safety laws every 3 month (Occupational 

health reports) 

Jan-Mar Apr-Jun Jul-Sep Oct-Dec 

4.4 Safety analysis to evaluate the risks 

4.5 Inspection, analysis, and report of accidents caused by working 

4.6 Report summary on accident statistics (on every 7th) 

4.7 Inspection on emergency alarms and automatic water pumpers 23 20 22 24 26 21 

4.8 Inspection on basic fire extinguisher 

5 Conflagration's Protection and Prevention 

5.1 Improving emergency extinguishing plan 

5.2 "Extinguishing and Fire Escaping" seminar / 

5.3 Basic fire extinguishing training 

• Emergency fire alarm system / / / / / / 

• Automatic stand pipe system and portable stand pipe / / / / / / 

• Basic extinguishers 

• Safety signs, and signboards 

5.4 Conflagration's prevention during dry season 



committee 


t 


officers 


officers 


officers 












officers 









Committee, and head of 

each department 








supervisors, and 



resources departments

26 

Society 

The company has organized the Corporate Social Responsibility 

or CSR since 2009 under the theme of “Dynasty Tile-Top 

Ceramic Market Returning Profit to Society”. In 2009, the 

company supported and helped build the floor of a classroom 

and improve the landscape of 3 schools in Thailand’s rural 

area. In 2010, we have continually organized this campaign 

and raised the number of schools chosen to be 14. 

Baan Saidaeng School, Mueng District, Ranong 

1 

1 Classroom before tiling 2 Classroom after tiling 3 Teacher’s common room before Tiling 4 Teacher’s common room

27 

• โรงเรียนเลาวิทยาคาร อ.เมือง จ.ชัยภูมิ 

• โรงเรียนหนองปลามันหนองไร อ.แกงครอ จ.ชัยภูมิ 

• โรงเรียนบานหลุบโพธิ์ อ.บานเขวา จ.ชัยภูมิ 

• โรงเรียนเมืองนอยราษฎรสงเคราะห อ.เมือง จ.ชัยภูมิ 

• โรงเรียนอนุบาลภูซาง อ.ภูซาง จ.พะเยา 

• โรงเรียนบานสบบง อ.ภูซาง จ.พะเยา 

• โรงเรียนบานปาสัก อ.ภูซาง จ.พะเยา 

• โรงเรียนตระเวนชายแดนฯ อ.ละหานทราย จ.บุรีรัมย 

• โรงเรียนบานหนองหวา อ.ละหานทราย จ.บุรีรัมย 

• โรงเรียนบานหนองกราด อ.ละหานทราย จ.บุรีรัมย 

• โรงเรียนทุงนาตาปน อ.ดานชาง จ.สุพรรณบุรี 

• โรงเรียนบานหนองกระดี่ อ.ดานชาง จ.สุพรรณบุรี 

• โรงเรียนบานทับละคร อ.ดานชาง จ.สุพรรณบุรี 

*รวมเปนจํานวนเงินทั้งสิ้น 3.8 ลานบาท* 

09.01.2553 

2 3 4 

oom after Tiling

28 

Baan Laowittaya School, Mueng District, Chaiyapoom 

Baan Lhumpho School, Baankhaow District, Chaiyapoom 

Baan Muengnoiratchasongkror School, Mueng District, Chaiyapoom 

Baan Nongplamunnongrai School, Kaengkro District, Chaiyapoom 

1 

2 

3 

4 

1,3 Versatile Building before tiling 2,4 Versatile Building afte tiling 5 Teacher’s common room before Tiling 6 Teacher’s common room a

29 

5 7 

29.06.2553 

6 

8 

om after Tiling 7 Acticity Court before tiling 8 Acticity Court after tiling

30 

Baan Pasuk School, Phusarng District, Phayao 

Baan Sob Bong School, Phusarng District, Phayao 

Phusarng Kindergarten, Phusarng District, Phayao 

14.08.2553 

1 

2 

1 Classroom’s corridor before tiling 2 Classroom’s corridor after tiling 3 Academic room before tiling 4 Academic room after tiling

31 

3 5 7 

5,7 Classroom before tiling 6,8 Classroom after tiling 

4 6 8

32 

Baan Nonggrard School, Laharnsai District, Burirum 

Baan Noinongwha School, Laharnsai District, Burirum 

Patrol Police’s School, Laharnsai District, Burirum 

1 

3 

1 Classroom before tiling 2-5 Classroom after tiling 6 Administrative room before tiling 7 Administrative room after tiling 

2

33 

18.09.2553 

3 6 

7 

4 5

34 

Baan Tublakorn School, Daancharng, Suphanburi 

Baan Tungnatapin School, Daancharng, Suphanburi 

Baan Nongkradi School, Daancharng, Suphanburi 

1 

1-2 Kindergarten’s classroom after tiling 3,6 sidewalks after tiling 4 Administrative room after tiling 5 Canteen after tiling 

2

35 

3 5 

20.11.2553 

4 6

Nature Of Business 

Dynasty Ceramic Public Company Limited was 

formerly known as Royal Floor Tiles Co. Ltd. Its core 

business is the manufacture and distributionof ceramic 

tiles. The Company was founded on 1 August 1989, 

listed on the Stock Exchange of Thailand on 3 January 

1992, and registered as a Public Company on 9 March 

1994. Its registered capital was increased to 280 million 

baht, with capital paid-up at a par value of 10 baht per 

share at 272 million baht, in January, 1995. 

At the end of 1997, the Shareholders and Directors 

of Tile Top Industry Public Co. Ltd, also a manufacturer 

of ceramic tiles with a factory located close to 

the Dynasty Ceramic Plant, bought 14.9 million ordinary 

shares of the company, or 54.82% of the paid-up 

capital, from the major shareholder which is a securities 

company. It has invested in more efficient machinery 

37 

and developed quality and more colorful products. It has also adjusted 

marketing strategies to focus more on distribution to consumers. 

Towards the end of 2000, the Company increased its registered 

capital to 408 million Baht, comprising 40.8 million shares with 

a par value of 10 Baht per share. The funds were to be utilized for 

the expansion of production capacity through the purchase of the 

entire ordinary shareholding in Tile Top Industry PCL from the original 

shareholders. As a result, the Company acquired the factory of Tile 

Top Industry Public Co. Ltd. The Company is currently the major 

shareholder in Tile Top Industry Public Co. Ltd., with an equity stake 

of 96.83%, of which 81.86 % is held by Thai nationals and 18.14 % 

by foreigners. (Register closed 31 January, 2011) 

Dynasty Ceramic Public Company Limited’s core business 

is the manufacture and distribution of ceramic tiles. It buys all products 

produced by Tile Top Industry Public Co. Ltd. at a wholesale 

price for sale. The Company also purchases sanitaryware and 

products related to ceramic tiles such as stair components and tile 

grout for sale through its three subsidiaries, namely Pick and Pay 

Co. Ltd.,Muangthong Ceramic Co. Ltd. and Worldwide Ceramic Co. 

Ltd, in which the Company invested an equity stake of over 96% in 

2005, to operate a retail business in the form of factory outlets. This 

enables the Company to get closer to its customers, know what they 

want and understand their ceramic tile purchasing trends. The Company 

used such information to improve its products and services, 

resulting in a rise in sales. 

As at the end of 2010, the Company had 177 branch 

warehouses nationwide and 116 local distributors. Its products are 

exported overseas to countries and regions including South Africa, 

Brunei, the Maldives, Indochina, Sri Lanka, Myanmar, Australia, New 

Zealand, Korea, Japan, Canada, Fiji, Loas, Kambodia etc . The ceramic 

tiles produced by the Company and its subsidiaries comprise 

• Floor and wall ceramic tiles under the “Dynasty” trademark 

• Floor and wall ceramic tiles under the “Tile Top” trademark 

• Floor and wall ceramic tiles under the “Tomahawk” trademark 

• Floor and wall ceramic tiles under the “Jaguar” trademark 

• Floor and wall ceramic tiles under the “Anna” trademark 

• Floor and wall ceramic tiles under the “Value” trademark 

• Floor and wall ceramic tiles under the “Mustang” trademark 

The Company and its subsidiary have extended their 

capacity thoroughly the year,until now,all capacity of both factory are 

51million square meters per year, that’s made The Company,currently 

holds the biggest share in the domestic ceramic tile market.

38 

Real estate business has grown 

considerably, considering more constructions 

in both city and provincial 

area; especially the first half of the year 

during which the overall tile market had 

grown up about 18-20%. For the second 

half of the year, La Nina phenomenon 

causing heavy rain made every region of 

Thailand encounter most severe inundation 

ever happened in 20 years’ time. 

However, the company has managed to 

maintain the sales growth rate of 11% 

and gain more than 18% of last year’s 

net profit due to the development in the 

many sections of the company. 

Factory 

• The company increased production 

capacity in January and July to ameliorate 

the manufacture’s potential, reduce 

fixed cost, and add more flexibility to 

inventory. 

• mprovement on the old kiln’s efficiency 

in March allows the company to 

increase the production capacity 

• The continuing research on the raw 

Significant Changes in the Past Year 

materials to find new materials and use 

them as the substitute of the old ones 

which are getting more expensive by 

taking the product’s quality as priority. 

• Improvement on the manufacturing 

plan’s calculating method to be in accordance 

with the production capacity itself 

to reduce the turnover of the inventory. 

• The company has carried on the Creative 

Idea Project which allows every 

employee to participate in creating new 

efficient economical manufacturing 

method. This project has been cooperated 

by so many employees that the 

company has saved not less than 10 

million Baht in expense. 

Although, the raw materials’ 

prices have been continually increasing 

during 2010; natural gas, which has 

raised approximately more than 17%, in 

particular, there has been no increase in 

production cost of the company. This 

is evidence proving that Dynasty does 

process potential and efficiency in the 

manufacturing procedures.

Headquarters 

• Improvement on computer system; increasing the server’s 

efficiency, resulted in faster and more effective calculations 

and processing. 

• The company has improved the reports to be more concise. 

The goal of doing so is to make it easier in analyzing 

to set the right strategies and directions for the company. 

• We have used the software called Documentum in dealing 

with the documents to be able to work more easily and 

flexibly. 

• An additional transportation cost’s calculation system created 

and programmed by the executives made the cost 

more satisfactory and fair to the other parties. The system 

also makes it faster and more correct. 

• The company has held training course for all staff in each 

section as well as the branches. 

•We have held the Corporate Social Responsibility (CSR) 

since 2009 under the theme of “Dynasty Tile-Top Ceramic 

Market Returning Profit to Society”. The companies supported 

in building the floor of classrooms and improved the 

landscape of 3 schools in rural area in 2009. Continually in 

2010, we organized this campaign and raised the number 

of schools chosen to be 14 under the budget of more than 

4 million Baht. 

In addition, both the executives and the employees 

39 

have cooperated in reducing the lead time as well as the 

working process. This made the quality of the company’s 

personnel higher and allowed the company to maintain the 

number of staff to be the same while having more quantity 

in work. 

Branches and Subsidiaries 

• Higher selling price; from 125 Baht to 129 Baht 

• New branches and improved old branches are 11 in number 

• There is sales promotion campaign under the theme of 

“Dynasty Tile Top Becomes No.1” held from April 2010 to 

April 2011 while having the campaign promoted on radio, 

in local newspapers, on the event cars running in every 

province. Moreover, in this campaign, 8 pick-ups and more 

than 144 motorcycles are rewarded to lucky persons. 

• Improvement on the in-store selling system to be 

connected to the headquarters and the factories, so that 

the system becomes more efficient. 

All of the above are the main elements for 

the company’s ceaseless forwarding steps. However, 

these could not have happened without the cooperation 

of the executives and all of the staffs. The company’s 

important goal are the lowest cost of goods sold with the 

standardized product’s quality, the working system which 

can penetrate to the work site in harmony, the flexible 

manufacturing procedures, and proactive sales. 

Revenue, Gross Profit & Net Profit (MB)

40 

Industrial Conditions 

and Competitions 

In 2010, the sales in the first 

and second quarter have broken the 

record of the company. The main factor 

is the rising price of the agricultural 

product; in March, sugar was at its 

highest price in 25 years’ time. Although, 

the rice’s price has decreased about 

10%, agricultural people could sell 

rice in number because of the natural 

disasters in the producers’ country 

resulted in much higher demand abroad. 

Due to the higher demand in tiles in the 

first quarter, the company’s production 

capacity was insufficient. This was 

identification that the company can raise 

the selling price from the average 125 

Baht/m2 to 129 Baht/m2 which also 

makes the company’s gross margin 

higher. 

Problems caused by the natural 

disasters abroad had an effect on 

Thailand in the second half of the year. 

The La Nina phenomenon happened 

in August resulted in heavy rain all 

over Thailand’s regions; the north, the 

northeast, and the central regions were 

affected by the rain first and gradually 

made some areas flooded with the 

height of over 5 meters. 

Thailand has encountered the 

natural disaster problems for several 

times, but Thai agriculturers always take 

only a short period of time to recovery. 

However, the inundation in 2010 has 

been the most severe in Thai history, 

the agriculture section, then, took time 

to recovery. Due to this problem, the 

company had to close 6 branches and 

got 100,000 m2 of wet defected tiles 

which were set on sales to distribute. 

The flood made the company’s 

target sales growth of 15% lowered to 

only 11% from the first half of the year’s 

growth rate of more than 19%. Nevertheless, 

the company has managed 

to increase the gross profit rate from 

42.5% to 44.3%, which made the total 

revenue 18% higher, or equal to 1,175 

million Baht. 

Quarterly Sales Performance by Region

Market Share 

41 

RCI, 10% 

TGCI, 17% 

UMI, 21% 

DCC, 53% 

DCC 

UMI 

TGCI 

RCI 

Generally, the tile market condition has been 

growing really well in the fourth quarter of 2009, and this 

trend is carried on to the second quarter of 2010. The 

main factors were the gradually-increasing price of crops 

and the overall of Thailand’s economic which has been 

extending. People had more liquidity, less unemployment 

problems which we could see that Thai labors become 

rarer and rarer. The overall of Thailand’s tile market of 2011 

has 9% higher in selling quantity; most of them have rose 

in the first half of the year and slowed down in the second 

half. For the company, there has been about 2% higher 

in growth than the market itself, which shows that the 

company has taken more market share. 

The chart above shows the market share of each 

public company in the Stock Exchange of Thailand. This 

shows that the company has held 53% of market share, but, 

actually, there are 7 tile producers in Thailand, the other 3 

companies are not in SET. Considering this fact, Dynasty 

has about 32% of market share, and 40% if we consider only 

domestic market of all 7 producers because Dynasty has only 4% 

market share in the tile export due to the high domestic demand 

and better gross profit rate, the company then keeps focusing on 

domestic market. 

The company increased the production capacity to two 

kilns and improved the efficiency of one kiln in 2010 to produce 

more and to have enough products to response to the increasing 

demand. The increased capacity also reduces manufacturing 

cost because of the Economy of Scales. This also allows the 

company to make more profit and have more potential in higher 

competition. 

As for the yearly selling price, the competitors have also 

lowered the prices; especially in the second half of the year, but 

the company has emphasized mostly on activities concerning 

sales promotion, which permitted the company to gain 4 Baht/m2 

in profit more than last year.

42 

Plans 

and Strategies in 2011

43 

In 2011, we have predicted that costs will 

increase; especially in energy. So the company will focus 

on developing to fix the cost, to increase the potential 

of all selling points and the value-added to the products 

by considering the gross profit as the priority. The overall 

targets are: 

• Maintaining the gross profit to be from 44% to 

45% 

• The sales growth rate of 10% from 2010 

• Opening 10-15 more branches by 2011 

• Increasing the production capacity to 2 kilns 

• Decreasing waste to be lower than 1% 

Because of the quiet condition of market in the 

second half of 2010 due to the flood in many provinces, 

constructions had to be slowed down in many areas. The 

manufacturers, then, had to lower the prices, although, 

the other costs; especially the energy cost, will start to 

increase in 2011. 

As for Dynasty, we slowed down the 2 projects 

concerning the new kilns; one of them was opened in 

January 2011. This new kiln can manufacture about 

250,000 m2 per month. The company will start using 

the second kiln in July 2011; this has taken the 

investment of about 280 million Baht and will have capacity to 

manufacture about 285,000 m2 per month. After using 

both kilns, the company will be able to take advantage 

from Economy of Scales and lower the production costs. 

For the sales growth rate, the company has 

targeted at 10%, less than the last year’s target because 

the company had the sales of 6.5 billion which is pretty 

high and this year’s house repairs and house construction 

are still affected by last year’s floods. Most of people 

encountered the flood still have to wait for their own 

revenue from their next manufacture to repair their places. 

The company has evaluated that the overall market will 

grow up about 6%-7%, but the reason why we have 

targeted higher is to gain more market share. 

The company has projected to maintain the gross 

profit rate to be from 44% to 45%. The methods to be 

carried out depend on both cost and marketing elements. 

Marketing 

• The current market trend is bigger tile. The 

company’s kilns can change the size of the tiles on demand. 

Moreover, the bigger tiles will allow the company to raise the 

average selling price per m2 as well as higher gross profit. 

• The opening of new 10-15 branches will increase 

the company’s channels and take more market share in the 

same time. 

• The policy of targeting on the constructors as a 

target market which will have the subscription for this special 

group of customers will stimulate continuing of purchases. 

Cost 

Since the company has predicted that the energy cost; 

especially the natural gas which is the main composition in 

manufacturing, as well as the cost of the chemicals, affected by 

the rising gas price, will increase. The company has policies to 

control the cost as below. 

• Increasing the production capacity which will make 

the company take advantage of the Economy of Scale to reduce 

the production cost 

• Research and development in the tile’s compositions 

to lower the temperature in the incineration which will result in 

less usage of the natural gas 

• Research and development in the tile color’s compositions 

and other chemicals to find cheaper substitute 

• Creating new technology to reduce the use of chemicals 

• Decreasing waste from last year’s 1.13% to be lower 

than 1% 

Considering the fact that we have to be qualified for 

many countries’ industrial standards, the cost control mentioned 

above will be employed with the primary concerns of the tile’s 

quality. If any policy reduces the tile’s quality, the company will 

not bring them into action. 

Transportation 

The Company has also planned to improve transportation 

system by using bigger trucks, and routing in considering 

the shortest and cheapest distance, which will be able to control 

the company’s transportation cost in a way.

Risk Factors 

The company had the executive committee evaluated the 

business risks and set the measures to manage the possible risks 

as followed. 

1 Risks from the natural disasters 

Due to Thailand’s climate changes in the recent years, the 

first half of the year was in drought, and there were floods in the 

second half. This made the agricultural products and crops have 

variation. So, the company set the policy to expand the market to 

reduce the risks from the natural disasters as well as to protect the 

company’s assets of every branch. 

45 

2 Risks from the energy cost 

The fluctuation of natural gas, which is the 

main fuel of the ceramic tiles’ manufacture, depending 

on the fuel oil’s and the world gas’ prices makes 

the production cost change from the company’s 

prediction. However, the company has policy to 

improve the manufacturing process; the raw materials 

in particular, to gradually reduce the energy cost, the 

quantity of the natural gas and the electricity used. 

3 Risks from the imported tiles 

In 2009, the tiles imported from China were 

worth more than 1.5 billion Baht, and in 2010, they 

were worth more than 3.7 billion Baht. The expansion 

was caused by the real estate companies which have 

doubled the condominium constructions in the city. 

This made the city’s tile market risky. The company 

has planned to sell 2 more styles of ceramic tiles. 

• Manufacturing cut-edge tiles which are like 

the imported tiles or granito which can be tiled close 

to each other, but, due to the high manufacturing cost, 

the company has to, keep developing to reach the 

desirably low cost first. 

• Manufacturing bigger tiles. In the present, 

there are 4 sizes of tiles, 8x8”, 8x10”, 12x12”, and 

16x16”, but there is demand on bigger tiles in the 

current market trend. The company has done 

researches in preparation of manufacturing 24x24” 

tiles, which is the same size as the imported tiles, to 

be better to response to the demand of the city’s tile 

market. 

4 Risks from the increasing transportation 

cost 

Since the company’s products are heavy 

goods; the higher transportation cost is likely. Due 

to the chaotic situation in Libya, the company has 

set policy to improve the transportation system by 

planning the transportation routing to have shortest, 

and cheapest distance, and using bigger vehicles. 

We expected that the policy can help control the 

transportation cost.

46 

Dynasty Ceramic PCL 

Produced Ceramic Floor Tiles , Gruut 

And Distributed all Products 

Organization Structure 

DCC Subsidiary which DCC hold 96.83% of Total Shares 

TILETOP INDUSTRY PCL. 

Produced CeramicFloor & Wall Tiles 

Sold To DYNASTY PCL. 

Purchased Sanitary ware 

and other related Products 

from local factory for Sales 

Sold to 

FACTORY OUTLETS 

Wholesales-local 

EXPORT 

Muang Thong Ceramic 

DCC HOLD 99.98 % 

PICK & PAY CO.LTD 

DCC HOLD 97.99 % 

WORLD WIDE CERAMIC CO.LTD 

DCC HOLD 99.93 %

47 

Financial Hilight 

(Consolidated Income Statement) 

2553 

2552 

2551 

2550 

2549 

2010 

2009 

2008 

2007 

2006 

Total Revenues 

6,531 

5,905 

5,095 

4,475 

4,460 

Net Sales 

6,513 

5,884 

5,089 

4,458 

4,452 

Gross Profit 

2,883 

2,500 

1,964 

1,716 

1,623 

%Gross Profit) 

44.3 

42.5 

38.6 

38.5 

36.5 

Selling & Admin. Expenses 

(1,206) 

(1,081) 

(984) 

(800) 

(746) 

Net Profit Before Interest & Depreciation 

1,988 

1,705 

1,280 

1,284 

1,252 

Net Profit 

1,175 

994 

664 

543 

567 

Consolidated Balance Sheet 

Total Assets 

3,715 

3,632 

3,893 

4,054 

4,349 

Total Liabilities 

989 

922 

1,443 

1,777 

2,306 

Total Shareholders' Equity 

2,726 

2,710 

2,449 

2,228 

2,044 

Financial Ratio 

Earning Per Share - Baht 

2.88 

2.44 

1.63 

1.33 

1.39 

Net Profit / Total Revenues - % 

17.99 

16.83 

13.03 

12.13 

12.71 

Debt Equity Ratio 

0.36 

0.34 

0.59 

0.80 

1.13 

(Return on Total Assets - % 

31.63 

27.37 

17.06 

13.39 

13.04 

Return on Equity - % 

43.10 

36.68 

27.11 

24.37 

27.74 

Booked Value - Baht 

6.68 

6.64 

6.00 

5.46 

5.01 

Dividend Per Share - Baht 

2.88 

2.08 

1.25 

1.00 

0.97 

Dividend Yield - % 

100 

85 

77 

75 

70

48 

Shareholding Structure 

Securities of Dynasty Ceramic Public Co. Ltd. Consist of; 

• Registered, issued and paid-up capital comprising 408 million shares 

• Par value of 1 Baht per share, representing a total value of 408 million Baht. 

• No debentures or warrants have been issued whatsoever. 

• No obligations with regard to the issue of future securities to Thai Trust Fund 

• No Major Shareholding Agreement on any company’s business 

As of 31 December 2010, the Company’s investments in ordinary shares of subsidiaries are as follows: 

1. Investment in ordinary shares of Tile Top Industry PCL, which under the Cost method at 109.5 million baht. 

The Company holds an equity stake of 96.83 % in this subsidiary. 

2. Investment in ordinary shares of Pick and Pay Co. Ltd., which under the Cost method at 12.5 million baht. The 

Company holds an equity stake of 97.99% in this subsidiary. 

3. Investment in ordinary shares of Muangthong Ceramic Co. Ltd., which under the Cost method at 4.8 million 

baht. The Company holds an equity stake of 99.98 % in this business. 

4. Investment in ordinary shares of Worldwide Ceramic Co. Ltd., which under the Cost method at 1.1 million baht. 

The Company holds an equity stake of 99.93 % in this firm. 

There are four subsidiaries as follows: 

1. Tile Top Industry PCL has registered capital of 300 million baht. Issued and paid-up capital as of 31 December, 

2010 comprised 22.2 million shares with a par value of 10 baht per share,amounting to 222 million baht in total. Tile Top 

Industry PLC has no subsidiary or affiliated company in which it has shareholdings or investments. 

2. Pick and Pay Co. Ltd. has registered capital of 12 million baht. Issued and paid-up capital as of 31 December 

2010 comprised 120,000 shares with a par value of 100 baht per share at 12.0 million baht. Pick and Pay Co. Ltd. has no 

subsidiary of affiliated company in which it has shareholdings or investments. 

3. Muangthong Ceramic Co. Ltd. has registered capital of 4.5 million baht. Issued and paid-up capital as of 31 December 

2010 comprised 45,000 shares with a par value of 100 baht per share at 4.5 million baht. Muangthong Ceramic Co. Ltd. has an 

equity stake in a ceramic tile retailer, Acapulco Co. Ltd., at 16.65% of registered capital, representinga value of 249,750 baht. 

4. Worldwide Ceramic Co. Ltd. has registered capital of 1.0 million baht. Issued and paid-up capital as of 31 December 

2010 comprised 10,000 shares with a par value of 100 baht per share, totaling 1 million baht. Worldwide Ceramic Co. Ltd. has 

no subsidiary of affiliated company in which it has shareholdings or investments.

49 

Shareholders 

Shareholders Shareholding structure (10 major shareholders) as of 31 January 2011 

RankingNo. Shareholder name 

No. of Share 

1 Mr. Roongroj Saengsastra 

100,000,000 

2 Mr. Vibul Vadcharasurang 

34,811,010 

3 THAI NVDR CO.,LTD 

21,730,000 

4 NORTRUST NOMINEES LTD 

20,263,800 

5 Mr. Monrak Saengsastra 

20,000,000 

6 Mr. Marut Saengsastra 

20,000,000 

7 Mr. Chaiyasith Viriyamettakul 

17,545,000 

8 Mr. Suvit Smarnphanchai 

12,892,000 

9 Miss Cattleya Saengsastra 

11,000,000 

10 AMERICAN INTERNATIONAL ASSURANCE 

CO., LTD - APEX 

6,567,000 

Total 10 major shareholders 

Total number of shares 

264,809,110 

408,000,000 

% of shareholding 

24.51 % 

8.53 % 

5.33 % 

4.97 % 

4.90 % 

4.90 % 

4.30 % 

3.16 % 

2.70 % 

1.61 % 

64.90 % 

100.00 % 

Shareholding structure of the subsidiary 

1. Tile Top Industry Public Co., Ltd 

Company/individual shareholder name 

1 Dynasty Ceramic Public Co., Ltd.) 

2 Kiatnakin Bank Public Co.,Ltd. 

3 Thailand Asset Management 

No. of shares 

21,495,906 

300,000 

400,000 


1 Dynasty96.83 % 

1.35 % 

1.80 %

50 

2. Pick and Pay Co., Ltd 


1 Dynasty Ceramic Public Co., Ltd. 


3 Miss. Cattleya Saengsastra 


5 Mr. Jeera Tritawil 

3. Muangthong Ceramic Company Limited 






5 Mr. Mr. Jeera Tritawil 

No. of shares 

117,593 

1 

1 

1 

1 

No. of shares 

44,993 

1 

1 

1 

1 


97.99 % 

0.0 % 

0.0 % 

0.0 % 

0.0 % 


99.98 % 

0.0 % 

0.0 % 

0.0 % 

0.0 % 

4. World Wide Ceramic Co., Limited 






5 Mr. Mr. Jeera Tritawil 

No. of shares 

9,993 

1 

1 

1 

1 


99.93 % 

0.0 % 

0.0 % 

0.0 % 

0.0 %

51 

REMUNERATION FOR THE DIRECTORS AND MANAGEMENT 

The Board of Directors have transparently and precisely determined the remuneration for Directors and Managememet, 

by benchmarking with other companies in the same industry and other listed companies in the Stock Exchange of Thailand. 

The Committee has carefully considered appropriate remuneration as well as business expansion and the Company’s 

profit growth. Then the committee would propose the management’s remuneration plan to the Company’s Board of Directors 

for approval. For the Directors’ remuneration plan, the Committee would propose to the Board tofurtherpropose to the shareholders’ 

meeting for shareholders’ approval. 

In 2010, the Company remunerated Directors in the following manner. Each Director received a meeting allowance of 

46,000 baht per meeting and the Chairman received 57,500 baht. In addition, Directors earned an allowance paid on a once 

yearly basis, subject to operating results: the allowance for 2010 amounted to 280,000 baht per Director. 

Directors also appointed as Audit Committee Directors received additional remuneration due to the increased working 

hours. The President and employees received remuneration in the form of a regular monthly salary and twiceyearly bonus. The 

provision of a bonus is dependent on profitability in each period and is approved by the Board of Directors on each occasion. 

Details of Meeting Allowance and Director Fee in Person for 2010 (Baht/year) 

DCC TILETOP Total 

Total Board Committee Director Board Director 

Name Of Board Members Meeting Meeting Fee Meeting Fee 

Allowance Allowance Allowance 

1. Mr.Roongroj Saengsastra 230,000 - 560,000 220,000 250,000 1,260,000 

2. Gen.Yuthasak Sasiprapha 184,000 230,000 280,000 - - 694,000 

3. Pol.Gen.Patcharawart Wongsuwan 184,000 184,000 280,000 180,000 250,000 1,078,000 

4. Mr. Surasak Kosiyajinda 184,000 184,000 280,000 - - 648,000 

5. Mr.ChaiyasithViriyamettakul 138,000 - 280,000 - - 418,000 

6. Mr.Suvit Smarnphanchai 184,000 - 280,000 - - 464,000 

7. Mr.Chana Suthiwangcharoen 184,000 - 560,000 180,000 250,000 1,174,000 

8. Mr. Sanchai Janejarat 184,000 - 560,000 180,000 250,000 1,174,000 

9. Mr. Yothin Juangbhanich 184,000 184,000 280,000 - - 648,000 

10. Miss Cattleya Saengsastra 184,000 - 560,000 180,000 250,000 1,174,000 

11. Miss Sontaya Yaowalee - 40,000 - - - 40,000 

Total 1,840,000 822,000 3,920,000 940,000 1,250,000 8,772,000 

Executive Board 

The Executive Board of Dynasty Ceramic Public Co. Ltd. comprises the Authorized Directors of the Company as follows 

Name-Surname 


2 Mr. Sanchai Janejarat 

3 Mr. Chana Suthiwangcharoen 

4 Miss Cattleya Saengsastra 

Title 

Chairman 

Executive Director 



Executive Director having the title of Accounting Director or responsible for the Company’s accounting activities: 

1 Miss Somruethai Boonyarit Vice President-Accounting Office

52 

Executives’ Remuneration 

Dynasty Ceramic Public Co. Ltd. and Subsidiaries remunerate executives in the form of monthly salary, bonus 

determined by corporate operating results, provident fund and other benefits such as petrol allowances 

No. of Executives 

Monthly salary/bonus/provident 

Company of 31 Dec fund/benefits(Million Baht) 

2010 2009 2010 2009 

Dynasty Ceramic PCL 8 6 22.46 18.34 

Tile Top Industry PCL 4 3 6.16 5.36 

Pick and Pay Co. Ltd. 1 - 0.16 - 

Muangthong Ceramic Co. Ltd 1 - 0.16 - 

Worldwide Ceramic Co. Ltd. - - - - 

Total 28.94 23.70 

The Company and its subsidiaries remunerated employees in the form of monthly salary, bonus, benefits, provident 

fund contribution and medical benefits approved by the Board of Directors. Employee remuneration in 2010, compared 

to 2009, is as follows 

Total employee remuneration Total employee remuneration Remuneration 

Company In 2010 (million baht) In 2009 (million baht) increase 

Plant/Branch HO Total Plant/Branch HO Total (decrease) % 

Dynasty Ceramic PCL 144.6 26.6 171.2 147.3 22.3 169.6 1 % 

Tile Top Industry PCL 148.9 10.5 159.4 129.2 9.7 138.9 15 % 

Pick and Pay Co. Ltd. 83.5 - 83.5 74.8 - 74.8 12 % 

Muangthong Ceramic Co. Ltd 56.3 - 56.3 54.2 - 54.2 4 % 

Worldwide Ceramic Co. Ltd. 29.1 - 29.1 27.6 - 27.6 5 % 

Total 462.4 37.1 499.5 433.1 32.0 465.1 7 % 

Number of employees for the Company and its subsidiaries as of 31 December, 2010, compared to a year earlier, is as follows 

No. of Employees No. of Employees increase 

Company In 2010 In 2009 (decrease) 

Plant/Branch HO Total Plant/Branch HO Total % 

Dynasty Ceramic PCL 602 91 693 620 88 708 -2 % 

Tile Top Industry PCL 712 16 728 697 18 715 2 % 

Pick and Pay Co. Ltd. 518 518 477 477 9 % 

Muangthong Ceramic Co. Ltd 347 347 354 354 -2 % 

Worldwide Ceramic Co. Ltd. 185 185 174 174 6 % 

Total 2,364 107 2,471 2,322 106 2,428 2 %

53 

Audit Fee 

(Quarterly Financial Statements and Annual Financial Statements) 

Audit Fee 

Proposed for 2011 Actual Fee 2010 % Increase( Decreased) 

Financial statements for Dynasty Ceramic PCL only 490,000 490,000 0 % 

Dynasty Ceramic PCL-Consolidated financial statements 200,000 200,000 0 % 

Tile Top Industry PCL 430,000 430,000 0 % 

Pick and Pay Co. Ltd. 350,000 350,000 0 % 

Muangthong Ceramic Co. Ltd. 300,000 300,000 0 % 

Worldwide Ceramic Co. Ltd. 175,000 175,000 0 % 

Total Audit Fee 1,945,000 1,945,000 0 % 

Audit Report Summary 2010 2009 2008 

Auditor/registration Mr.Jadesada Hungsapruek Miss. Wannisa Ngarmbuathong Mr. Pichai Dachanaphirom 

/3759 /6838 /2421 

Auditing Office Karin Audit Co. Ltd. Dharmniti Auditing Co. Ltd. Dharmniti Auditing Co. Ltd. 

Auditor’s opinion No conditions No conditions No conditions 

* For the year 2011, The Audit Committee proposed the new Auditors from Karin Audit Company to The Board of 

Director for approval from The Shareholders’ Meeting 1/2011 

* During the past year DCC and its’ Subsidiaries did not paid any non-audit fee to the Audit Firm or another auditor or 

related person to this audit firm.

54 

MANAGEMENT STRUCTURE 

The Management structure of the Company consists of the Board of Directors and 3 committees including the Audit 

Committee, the Executive Directors’ Committee, and the Management Committee, The scopes of authorities and duties of the 

Board of Directors and the Executives in the management of the Company are conducted in accordance with the law, objectives, 

articles of association of the Company, Board’s resolutions, as well as the shareholders’ meeting resolutions including 

compliance with the laws concerning Securities and Securities Exchange, regulations and good practices of the Office of the 

Securities Exchange Commission (SEC), the Stock Exchange of Thailand (SET) and relevant laws to the Company’s operation. 

The Company must also report of the stakeholders and related persons and disclosure of information to the shareholders and 

public which have established that the Directors and Executives must manage the Company with accountability, prudence and 

honesty for the utmost benefit of the Company. Details as followed. 

1.The Board of Directors 

As of December 31, 2010, the Board of Directors of the Company comprised of 10 Directors which can separated in 2 groups 

are 

1. Directors who are Shareholders 

Major Shareholders who also serve as Directors and have the authority to manage and govern Dynasty Ceramic Public 

Co. Ltd., as of 31 January 2011, are presented below. 

1. Mr. Roongroj Saengsastra Chairman 24.51 % of Share Hold 

2. Mr. Chaiyasith Viriyamettakul Director 4.30 % of Share Hold 

3. Mr. Suvit Smarnphanchai Director 3.16 % of Share Hold 

4. Miss Cattleya Saengsastra Director & Secretary 2.70 % of Share Hold 

5. Mr. Sanchai Janejarat President 0.08 % of Share Hold 

2. Directors who are not the Shareholders 

Directors with controlling authority and serving as Directors in the Company are shown below but having 

no shareholdings 

1. Gen.Yuthasak Sasiprapha Independent Director and Chairman of the Audit Committee 

2. Pol.Gen.Patcharawart Wongsuwan Independent Director and Audit Committee 

3. Mr. Yothin Juangbhanich Independent Director and Audit Committee 

4. Mr. Surasak Kosiyajinda Independent Director and Audit Committee 

5. Mr. Chana Suthiwangcharoen Executive Director (Marketing) 

Authorized Directors of the Company 

The names of the directors authorized to sign for the Company are: Mr. Roongroj Saengsastra, Miss Cattleya Saengsastra, 

Mr. Sanchai Janejarat, Mr. Chana Suthiwangcharoen,Mr. Suvit Smarnphanchai or, Mr. Chaiyasith Viriyamettakul Two out 

of six must sign together and affix seal of the Company

55 

Assignment of Management Duties to the Managing Director 

The Board of Directors must comply with the Laws, Company objectives and Company regulations, including resolutions 

of Shareholder Meetings. The board has the authority to appoint an individual to conduct operations on behalf of the Company 

under the control of the board of directors, or delegate authority and duties to the said person as appropriate. The Board of 

Directors may cancel, revoke or amend such authority. 

The Board of Directors has written guidelines on management and approval authority of the managing director and 

executives from all levels. The Company has followed these written guidelines to control operations. The Managing Director has 

the authority to conduct and approve transactions following the budget approved by the Board of Directors. If the transaction 

is a special item for which no budget has been allocated, but needs to be implemented urgently for the Company’s benefits, 

the Managing Director is authorized to approve a budget of not more than 10 million baht, but this must be proposed to the 

Board of Directors for ratification during the next meeting. 

Authorities and Duties of the Board of Directors 

1. Establish Company’s policy, objectives, business plan and budget as well as oversee the management of the Management 

Committee and the Management to be in accordance with the assigned policy for effectiveness and utmost benefit to 

the Company and the shareholders by monitoring and assessing the performance regularly. 

2. Establish scope of duties and responsibilities of the Committees and Management and convey the information to 

the related parties regularly, as well as assign the duties and responsibilities to theCommittees, individual or several Directors or 

other persons to perform certain matter on behalf of the Board of Directors under supervision of the Board of Directors within 

the time period that is deemed appropriate, of which the Board of Directors may cancel, revoke or change the authorized person 

or such authority when deemed appropriate. 

3. Establish good corporate governance according to the laws of the Securities and Securities Exchange,regulations of 

the Office of SEC, the SET or laws which are related to the Company’s business. 

4. Establish appropriate and sufficient internal control system, internal audit and risk management system, as well as 

regular monitoring of these matters by having the Committees reporting their operating results every quarter to the Audit Committee 

and Board of Directors. 

5. Establish and arrange for the Board of Directors’ Meeting and Shareholders’ Meeting, including regular preparation of 

the financial statements showing financial status, communication and disclosure of Company’s information to the related parties 

as follows 

5.1 Arrange the Board of Directors’ Meeting for at least once every 3 months and convene the extraordinary 

meetings as necessary. The Company held 4 Board of Directors’ Meetings in 2010. 

5.2 Arrange to prepare the Company’s balance sheets and statements of income at end of financial 

period of the Company that have been reviewed by the Audit Committee and external auditor and propose to 

the Board or Directors and Shareholders’ Meeting for consideration. 

5.3 Arrange for the Annual General Meeting of Shareholders within 4 months from the end of the financial 

period of the Company. 

6. Promote that the employees at all levels to be aware of the code of conduct and ethics by realizing the importance 

of the internal control and internal audit system in order to reduce risk from fraudulent and improper use of authority, as well as 

preventing illegal activities relating to the business of the Company.

56 

Company Secretary 

The Board of Directors Meeting No.3/1998 resolved to appoint Ms. Cattleya Saengsastra to be the Company’s secretary 

from February 23,1998 and determine following scopes of responsibilities that the secretary must perform responsibly, 

prudently and honestly: 

1. Arrange shareholders and Board of Directors’ meetings to be in compliance with the Company’s rules and regulations 

and regulations of relevant regulatory agencies. 

2. Make meeting minutes of the shareholders and Board of Directors’ meetings and follow up the operation result according 

to the shareholders and Board of Directors’ resolutions. 

3. Ensure that the information disclosures are in compliance with rules and regulation of the SET and the Office of the 

SEC. 

4. Prepare and keep following documents 

(A) Director’s registration 

(B) Board’s meeting invitation and meeting minutes 

(C) Shareholders’ meeting invitation and meeting minutes 

(D) The Company’s Annual Report. 

5. Store connected transaction reports that Directors and managements report to the Company. 

6. Give preliminary advice to the Board concerning rules and regulations of the Company and ensure that the practices 

are in compliance with those regulations. The secretary must report any significant changes to the Directors. 

7. Oversee Board of Directors’ activities and other issues according to the laws or as assigned by the Board of Directors 

or by the securities exchange regulators.The secretary has prepared initial report concerning the Company’s secretary / 

document storage (Form 89/15-1) to the SET and the Office of SEC and post information on the Company’s website. 

Occasion of Position Holding 

In every Annual General Meeting, one third of the Board of director has to resign from the position. Those directors resiging 

in the first year and the second year after the company’s registration should draw lots in order to find out who will resign. 

For tje following year, the director who has been holding the position for the longest period of time should resign himself. 

for those resigned directors, they have right to be appointed again according to the consideration of the shareholders. 

The position leaving happens in 2 cases; the director’s own reason like death or a willing resignation, and dismissal 

by the shareholder’s resolutions of not less than 3 out of 4 of the shareholder attending the meeting and voting, and have 

the total of more than half of the share held by all of the shareholders having right to vote. The director recruitment is perforemed 

by electing competent people from various occupations wtih leadership, far-vision, ethical mind, no disgrace in working, and 

capability to comment independently.

57 

Board of Directors’ Meetings 

The Company states that a Board of Directors’ meeting shall be held once every three months. An invitation letter 

stating a clear agenda is sent to every Director in advance according to the Company’s Articles of Association. Majority votes 

shall be employed for the resolutions of the meeting and if a resolution is objected to by any Director, it shall berecorded in the 

minutes of the meeting which are kept at the Company 

The Attendance of Directors in The Board of Director’s Meetings (Times) 

DCC TILE TOP Shareholders 

Board Committee Audit Committee Board Committe Meeting for Year 

Name Of Board Members 10 members 4 members 5 members 2010 

Total 4 times Total 4 times Total 4 times 10 members 

On 27/04/2010 

1. Mr. Roongroj Saengsastra 4/4 4/4 1 

2. Gen.Yuthasak Sasiprapha 4/4 4/4 1 

3. Pol.Gen.Patcharawart Wongsuwan 4/4 4/4 4/4 1 

4. Mr. Surasak Kosiyajinda 4/4 4/4 1 

5. Mr. Chaiyasith Viriyamettakul 3/4 1 

6. Mr. Suvit Smarnphanchai 4/4 1 

7. Mr. Chana Suthiwangcharoen 4/4 4/4 1 

8. Mr. Sanchai Janejarat 4/4 4/4 1 

9. Mr. Yothin Juangbhanich 4/4 4/4 1 

10. Miss Cattleya Saengsastra 4/4 4/4 1 

2. The Committees 

The Board of Directors has established the following 3 Committees 

2.1 The Audit Committee 

The Board of Directors’ meeting no.88(1/2009), dated Tuesday 28 April, 2009, resolved to re-appoint the Audit 

Committee Members who would be retired by rotation to resume existing position for another 3 years from April 28, 2009. 

consist of 

1. General Yuthasak Sasiprapa Chairman of Audit Committee 

2. Pol.General Patcharawat Wongsuwan Audit Committee 

3. Mr. Surasak Kosiyajinda Audit Committee 

4. Mr. Yothin Juangphanich Audit Committee 

5. Miss Sonthaya Yaowalee Secretary of Audit Committee 

The Board also resolved to use new rules issued by the Audit Committee to ensure strict and transparent operation

58 

Qualifications of the Audit Committee 

According to the Audit Committee’s regulation, the Audit Committee Members must be truly independent compliance 

with Securities and Exchange laws, regulations of the Stock Exchange of Thailand, and other relevant laws including Securities 

and Exchange acts as follow 

(A) Not holding more than 1 (one) percent of the paid-up capital of the Company, subsidiaries, affiliates, or any related 

juristic persons, also including the shareholding by related persons. 

(B) Is not or was not Executive Directors, workers, employees or consultant with regular fee paid from the Company, 

subsidiaries, affiliates, associated companies or juristic persons that may have conflict of interest, unless such tenure was over 

at least 2 years prior to the appointment. 

(C) Is not related or a relative, either via family tie or legally related, such as in form of parents, spouse,siblings, children, 

as well as spouses of children, executives, major shareholders, authorized directors or the person who will be proposed 

to become executive or authorized director of the Company or subsidiaries. 

(D) Never have business relationship with the Company, subsidiaries, affiliates or juristic persons that may have conflict 

of interest in the manner that could interfere independent judgment. The Audit Committee Member must not or never be major 

shareholders, Director other than Independent Director, or managements, or related persons with the Company, subsidiaries, 

affiliates or juristic persons that may have conflict of interest, unless such tenure was over at least 2 years prior to the appointment.The 

business relationship according to paragraph 1 include the normal trade transaction concerning property or real 

estate leasing, service, financial service including lending, guarantee, collateralize, or other similar practice which could result in 

the Company or contract party having obligation to another party with value exceeding 3% of total net tangible assets or more 

than Baht 20 million, which ever amount is lower. The liability calculation can be calculated according to the connect transaction 

value according to the announcement from the Board of the SET concerning information disclosure of the listed company. The 

obligation shall include debts that occur within one year prior to the date that has business relationship with the same person. 

(E) Is not or was not the external auditor of the Company, subsidiaries, affiliates or juristic persons that may have conflict 

of interest. The Audit Committee Member must not be major shareholders, Director other than In dependent Director, or 

managements of the audit company that work for the Company,subsidiaries, affiliates or juristic persons that may have conflict 

of interest, unless such tenure was over at least 2 years prior to the appointment. 

The Company has a strict policy to search for Audit Committee Member that possesses knowledge, capability and 

qualifications as announced by the SEC and the Stock Exchange of Thailand. The Company must have the Audit Committee 

Members of not less than one-third of the total number of Directors of the Company and comprise of at least 3 Audit Committee 

Members of which one of them must possess the knowledge in accounting and finance and must be appointed by the 

Board of Directors or the Shareholders.During 2010, the Audit Committee held 4 meetings. 

Scope of duties and responsibilities of the Audit Committee 

The Board of Directors No.4/2008 on October 28, 2008 has already approved the Audit Committee Charter to amend 

in line with Notification of the Stock Exchange of Thailand (Re: Qualifications and Scope of Work of the Audit Committee, 2008 

: June 9,2008).The new Scope of duties and responsibilities of the Audit Committee are as follow 

1. Reviewed the accuracy and completeness of financial statements 

2. Reviewed the adequate and effectiveness of the Internal Control System and the Internal Audit Systems. Also reviewed 

the independence of the Internal auditor and considered the nomination and appointment or rotation of the Internal 

auditor and related party. 

3. Reviewed the compliance with Securities and Exchange laws, regulations of the Stock Exchange of Thailand, and 

other relevant laws including Securities and Exchange acts.

59 

4. Considered the independence, performance and services of the external auditor,nomination and appointment of the 

external auditor and reviewed the annual audit fee including settled at lease 1 a year private meeting with the External Auditor 

without management from the Company. 

5. Reviewed connected transactions executed by the Company with related parties who were considered as having a 

conflict of interest, and reviewed the sufficiency of the disclosure of these transactions in accordance with the requirements of 

the Stock Exchange of Thailand. 

6. Prepare Report of the Audit Committee by disclosing in the Company’s annual disclosure form (Form 56-1)and Annual 

Report (Form 56-2), whereas the report must be signed by the Chairman of the Audit Committee and include the following 

information 

(A) The opinion of the Committee on the financial reports of the Company for their correctness,completeness 

and reliability. 

(B) The opinion of the Committee on the sufficiency of internal controls of the Company. 

(C) The opinion of the Committee as to the Company’s abiding by the laws and regulations of the Securities, 

the Office of the SEC and the SET, and other relevant laws concerning business operations of the Company. 

(D) The opinion of the Committee concerning suitability of the external auditor. 

(E) The opinion of the Committee concerning connected transaction. 

(G) The opinion or comment that the Committee receives from complying with the Charter. 

(H) The presentation of any other reports or pertinent information that is deemed appropriate for shareholders 

to know within the scope of duties and responsibilities as assigned to the Committee by the Board of Directors. 

7. Any other responsibilities assigned by the Board of Directors with the consent from the Audit Committee. 

2.2 Executive Board The Company has 4 Executive Directors as follows 

1. Mr. Roonroj Saengsastra (Chairman) 

2. Mr. Sanchai Janejarat (President) 

3. Mr. Chana Suthiwangcharoen (Executive Director -Marketing) 

4. Ms. Cattleya Saengsastra (Executive Director and Company’s Secretary) 

Scope and Authority of Executive Board 

1.Authorised to order, plan and implement operations of the Company in accordance with the policies established by 

the Board. 

2.Establish operational strategies for the Company’s group 

3.Formulate plans and directions concerning investment and fund raising in accordance with the Company’s and Subsidiaries’ 

policies before proposing them to the Board of Directors for approval. 

4.Determine the salary rate, appoint, dismiss, fire, reward, and award raises as well as bonus to staff. 

5.Has the authority to determine staff welfare in line with the situation, tradition and law. 

6.Has the authority to approve investment, sales and purchases of fixed assets of the Company and Subsidiaries, 

procurement, application for loans, provision of loans, entry into contracts, and legal transactions in relation to normal business 

and trade and in accordance with the Company’s objectives, under a budget approved by the Board of Directors and within 

the operating authority of the Company. In case the items represent conflicts of interest with the Company or the subsidiaries, 

the Executive Board must present such items to the meeting of the Board and/or the meeting of Shareholders (as applicable) 

for approval of the items in accordance with the Company’s Articles of Association or relevant laws.

60 

Certification of Accuracy of Information by the Executive Board 

The Executive Board reviews the annual information disclosure form as Executive Directors of the Company or as Top 

Accounting Executive by certifying that the information disclosed is complete and accurate and does not mislead or lacks important 

contents that should be disclosed, as follows: 

1.Financial statements and financial information presented in the annual information disclosure form comprise complete 

and correct data on financial status, operating results and cash flows of the Company and Subsidiaries. 

2.Responsible for arranging an adequate information disclosure system for the Company to ensure that the Company 

discloses complete and accurate information of a significant nature of the Company and its subsidiaries, including overseeing 

that the system is followed. 

3.Responsible for arranging an effective internal control system for the Company and overseeing that the system is followed, 

which includes system weaknesses and major changes as well as illegal actions that may affect the preparation of the 

financial reports of the Company and its subsidiaries. 

2.3. Management Team 

The Company’s Management is appointed by the Managing Director and assigned to oversee performance defers to 

the plans and budget approved by the Board of Directors. 

Over the past year, the Company’s Management held monthly meetings to consider and screen monthly reports of 

operating results compared to the business plans and policies established by the Executive Board. It is also responsible for 

monitoring the operations of each department and suggesting measures for prevention of potential risks. 

1. Mr. Sanchai Janecharat President (Chairman) 

2. Mr. Chana Suttiwangcharoen Executive Director (Marketing) 

3. Miss.Sontaya Yaowalee Executive Director (outlets) 

4. Mr. Sutee Boonnag Assistant Managing - Technical 

5. Mr. Monrak Saengsastra Assistant Managing - Factory Management and Operation 

6. Mr.Jaruwat Tritawil Assistant Managing - Production 

7. Mr.Chavalit Pidthong Vice President - Production (DCC Factory) 

8. Mr Arun Natchayangkoon Vice President - Factory Management 

9. Mr. Somnuek Suriyakul Vice President - Engineering DCC/TTOP 

10. Mr.Marut Saengsastra Director of Information System Technology, 

and Investor Relations 

11. Mr.Jarujate Tritawil Vice President - Marketing 

12. Miss Porntip Pengtako Vice President - Subsidiary’s Accounting 

13. Miss Anchalee Pongkunakorn Purchasing Manager 

14. Miss Somruethai Boonyarit Vice President - Accounting Office 

(Secretary of Management Committee)

61 

List of Directors of whom also serve as Directors in the Subsidiary Company as 

at Jan 31,2011 

Positon in 

Name Of Board Members Age Dynasty Ceramic PCL. Tiletop Industry PCL. 3 Subsidiaries 

1. Mr.Roongroj Saengsastra 61 Chairman Chairman Chairman 

2. Gen.Yuthasak Sasiprapha 74 Independent Director - - 

& Chairman of Audit Committee 

3. Pol.Gen.Patcharawart Wongsuwan 61 Independent Director & Audit Committee Director - 

4. Mr. Surasak Kosiyajinda 68 Independent Director & Audit Committee - - 

5. Mr. Yothin Juangbhanich 62 Independent Director & Audit Committee - - 

6. Mr. Sanchai Janejarat 61 President Managing Director Director 

7. Mr. Chaiyasith Viriyamettakul 61 Director - - 

8. Mr. Suvit Smarnphanchai 62 Director - - 

9. Mr.Chana Suthiwangcharoen 63 Director Director Director 

10. Miss Cattleya Saengsastra 63 Executive Director & Director Director 

Company’s Secretary

62 

Subsidiaries 

There are four subsidiaries which were controled by Parent’s Company as follows 

1. Tile Top Industry Public Co. Ltd. 

a subsidiary in which Dynasty Ceramic Public Co. Ltd. has a 96.83% equity stake. List of Directors of whom also serve 

as Directors in this Subsidiary are: 

1.1 Mr. Roonroj Saengsastra Chairman 

1.2 Mr. Sanchai Janejarat President 

1.3 Mr. Chana Suthiwangcharoen Executive Director - Marketing 

1.4 Pol.Gen.Patcharawart Wongsuwan Director 

1.5 Ms. Cattleya Saengsastra Executive Director and Company’s Secretary 

2.Pick and Pay Co. Ltd. 

a subsidiary in which Dynasty Ceramic Public Co. Ltd. has a 97.99 % equity stake. List of Directors of whom also serve 

as Directors in this Subsidiary are 


2.2 Mr. Sanchai Janejarat Director 

2.3 Mr. Chana Suthiwangcharoen Director 

2.4 Ms. Cattleya Saengsastra Director 

3. Muang Thong Ceramic Co. Ltd. 


as Directors in this Subsidiary are 




3.4 Ms. Cattleya Saengsastra Director 

4 .World Wide Ceramic Co. Ltd. 


as Directors in this Subsidiary are: 




4.4 Ms. Cattleya Saengsastra Director

63 

CORPORATE GOVERNANCE 

1. Corporate Governance Policies The Board of Directors values good corporate governance and has assigned 

management to issue a manual of good corporate governance principles since 2003; a revised version was issued on 27 October, 

2006. Employees and all concerned have been informed about specific principles and asked to follow them accordingly. 

Corporate governance focuses on business ethics and governance to ensure that the Company’s operations comply with business 

laws, Articles of Association and meetings’ resolutions as well as principles issued by the Securities and Exchange Commission 

and the Stock Exchange of Thailand. The Board of Directors has utilized its knowledge and experience to ensure that 

management follows the corporate vision and business strategies and goals as well as the effective use of corporate budgets. 

The Board of Directors and Management Executives are in charge of corporate operations. Authority in relation to corporate 

operations is established in the Company’s rules and regulations. The President meets with department executives every month 

to screen the Company’s operations, review plans and follow the progress of tasks in accordance with resolutions of the Board 

of Directors’ meeting. Corporate governance and management in its subsidiaries is implemented through the Company’s personnel, 

acting as Directors in the said subsidiaries. The management authority of the Company depends on the number of Directors 

and the Articles of Associations of the subsidiaries. The management policies of the subsidiaries are independent and are based 

on industrial competition 

2. Environmental and social responsibility The Company has a budget for environmental conservation, both 

within the factories and in adjacent areas as fellow 

2.1 No waste water or any waste materials flowed out from factory by implemented a waste water disposal 

system. Waste water can be recycled for the manufacturing process to help maintain the quality of the 

surrounding environment and community. 

2.2 Improvement manufacturing process by using wet process in raw material crushing instead of dry crushing 

also had installed a dust collector at the factory. 

2.3 Minimized power consumption from natural gas and electricity which occurred from burning in process. 

The Company has been modify the machine so they can reused heat from manufacturing process ,that 

made the consumption cost of natural gas reduced 21% and power supply decreased 18% during the 

past 5 years. 

3. Rights of Shareholders The Company has established the protection for the rights of shareholders and encourage 

the shareholders to exercise their basic rights as stipulated by the laws such as the rights to share the profit of the Company; 

to obtain relevant and adequate information of the Company 

The Company also recognizes the importance of the shareholders’ meeting by sends an invitation letter to shareholders 

in advance not less than 7 days, according to the Annual General Shareholders’ Meeting (AGM Checklist), which established 

by the Office of the Securities Exchange Commission and the Stock Exchange of Thailand.The shareholders can freely express 

their opinions and raise questions at the shareholders’ meeting as well as vote in the manner they wish. 

In addition, the Company sends a proxy form with the invitation letter, so that the shareholders can assign someone 

to attend the meeting and vote on their behalf in case they cannot attend the meeting, as well as the Company’s Articles of 

Association related to the Shareholders’ meeting. 

The Company has set up its website in order to provide important information and news such as financial reports, annual 

and quarterly operating results, annual report. As for the invitation to the shareholders’ meeting, the same information as 

the documents that must be forwarded to the shareholders are disseminated on the Company’s website at least 30 days before 

the date of the meeting

64 

Moreover, the Company allows the shareholders to propose a list of nominees for Directors and additional agendas 

in advance. The shareholders can also access information on each meeting’s agenda in advance and view each Shareholder’s 

Meeting’s minutes on the Company’s website. 

4. Insider Information Measures The Company has established the following policies which prohibit the directors, 

executives and employees of the Company for seeking personal gain from the Company. 

4.1 The directors, executives and employees of the Company are prohibited from operating in similar type of 

business or business that is in competition with Company. 

4.2 The directors, executives and employees of the Company are to avoid making transactions that are 

connected and may have conflict of interest with the Company. If it is necessary to carry out such transaction 

for the Company’s benefit or the connected transaction cannot be avoided, the directors, executives and 

employees of the Company, the person with interest in the transaction must prepare memorandum for 

acknowledgement by the board of directors according to the chain of command. Furthermore, directors, 

executives or employees having an interest in a transaction must not be involved in its approval process and 

must conduct it as if it is a transaction done with a third party. 

4.3 Must not use inside information for personal benefit in dealing in the shares of the Company or give inside 

information to the third party for benefit in dealing in the shares of the Company, including not taking 

opportunity or using inside information of the Company to seek personal benefit or for conducting business 

or other activities in competition with the Company or related business. 

5. Roles of Stakeholders The Company has prepared guidelines for business ethics, covering the role and duties of 

Executives and management in the Company’s manual of good corporate governance principles, the code of Ethics in Conflict 

of Interest Matter 

5.1 Ethics in Conflict of Interest : The Company has established the policies that the directors, executives 

and employees of the Company are prohibited from operating in similar type of business or business that is 

in competition with Company. If it is necessary to carry out such transaction for the Company’s benefit or 

the connected transaction cannot be avoided, the directors, executives and employees of the Company,the 

person with interest in the transaction must prepare memorandum for acknowledgement by the board of 

directors according to the chain of command. Furthermore, directors, executives or employees having an 

interest in a transaction must not be involved in its approval process and must conduct it as if it is a 

transaction done with a third party. The directors, executives and employees of the CompanyThe Company 

has policy to conduct its business with integrity, honesty, and ethics and intends to do its best to develop 

its business, must not use inside information for personal benefit in giving inside information to the third 

party for benefit in taking opportunity or using inside information of the Company to seek personal benefit or 

for conducting business or other activities in competition with the Company or related business. 

5.2 Business Ethics : The Company has prepared guidelines for business ethics, covering the role and 

duties of Executives and management, ethics in relation to shareholders, customers, competitors and 

employee ethics. These ethical and integrity issues have been clearly specified by the Company. 

In the Company’s manual of good corporate governance principles, the code of ethics for the Board of 

Directors is stated as follows: 

5.2.1 Comply with the Laws, Company objectives and Company regulations, including resolutions of 

Shareholder Meetings.

5.2.2 Manage for the benefit of mutual stakeholders and maintain the Company’s image. 

5.2.3 Manage with integrity and strict neutrality. 

5.2.4 Have no direct or indirect share in any business with the company in which one is a director 

or in any business considered a competitor of the company in which one is a director, whether 

directly or indirectly 

5.2.5 Manage without conflict of interest to ensure effective and efficient management. 

5.2.6 Do not seek undue benefits from work, whether directly or indirectly 

5.2.7 Perform duties professionally and with full potential to ensure maximum benefits for the 

Company. 

5.2.8 Shall not be an entrepreneur or major shareholder or have family members as directors 

of shareholders in a business or trade of which nature is the same as the Company’s and is 

a competitor or trading partner of the Company in which one is a director, whether it is for 

personal or other people’s gain. 

5.2.9 Shall not perform any task that represents management in the Company in a manner 

that adversely affects the benefits of the Company in which one is a director or benefits any 

individual or juristic person, whether for personal or other people’s gain. 

5.3. Ethics toward Shareholders : The Company has policy to conduct its business with integrity, honesty, 

and ethics and intends to do its best to develop its business while creating valuable investment returns for 

the shareholders in a continuing and sustainable manner in which all shareholders are treated equitably. 

5.4 Ethics toward Customers : The Company realizes the importance of customer satisfaction to the 

Company’s success; therefore, it intends to continue conducting its business with higher efficiency and 

effectiveness for the utmost benefit of the customer of the Company. 

5.5 Ethics toward Trading Partners : The Company has policy to treat its trading partners equitably and 

fairly, taking into consideration the Company’s interest and on the basis of mutual benefit, avoiding circum 

stances that may lead to a conflict of interest, as well as making efforts to comply with all contractual 

obligations, providing reliable information and accurate report, conferring or negotiating for solutions to 

problem on the basis of business relationship. 

5.6 Ethics toward Business Competitors : The Company has policy to behave toward its business 

competitors in a way consistent withinternational practice and the legal framework for business competition, 

not spying on or fraudulentlyseeking knowledge of its competitors’ trade secrets. 

5.7 Ethics toward Creditors : The Company has policy to comply with the all the terms and conditions 

agreed upon in every loan transaction. 

5.8 Ethics toward Employees : The Company realizes that the employees are extremely valuable asset and 

the success factor, making essential contribution to the Company’s achievement of its goals. Therefore, it is 

the Company policy to treat the employees fairly in all respect including opportunity, remuneration, 

promotion, as well as professional development. 

6. The Board of Directors’ Responsibility The Board of Directors comprises ten Directors, with four Executive 

Directors and six Non-Executive Directors. The Non-Executive Directors comprise Independent Directors, Audit Committee Directors 

and Directors who are representatives of shareholder groups. At Board of Directors’ Meetings, non-Executive Directors 

express their opinions alongside that of Executive Directors. With regards to voting at Board Meetings, each Director has one 

vote; in the event that votes are tied, the Chairman of the Meeting will cast one additional decisive vote. 

65

66 

At present,the Chairman of the Company has no any positions in another companies according to Attachment 1 in 

Form 56-1 and in annual report (56-2) so he can devoted his time in management regularly,in the past year,he had joined all 

times in Board of Directors’Meeting and contributed his usefully idea to the Board of Directors 

7. Report of Board of Directors’ Responsibilities to Financial Reports The Board of Directors is responsible 

for the accuracy and completeness of Dynasty Ceramic Public Company Limited’s own financial statements and Dynasty 

Ceramic Public Company Limited and its subsidiaries’ consolidated financial statements, including the financial information presented 

in this annual report. The said financial statements have been prepared in accordance with generally accepted accounting 

principles. Appropriate and regularly practiced accounting policies were selected. The said statements presented accurate and 

complete information in relation to the Company and its subsidiaries’ financial status, operating results and cash flows. Important 

information is sufficiently presented in the notes to financial statements in the annual report, which covers contents as prescribed 

by the Stock Exchange of Thailand’s good corporate governance for listed companies. The Company appointed an Audit Committee 

to be in charge of reviewing the financial statements, internal control, and risk management. The Audit Committee also 

reviewed disclosure of related transactions of the Company and its subsidiaries to ensure that and ensured the Company and its 

subsidiaries have disclosed significant information accurately and completely. It also ensured that such systems were followed. 

The Company’s financial statements and the consolidated financial statements of the Company and its subsidiaries have been 

examined by an external auditor from Karin Audit Co. Ltd. The Company provided the auditors with complete documentation 

and information to enable the auditor to audit and express opinions in accordance with auditing standards. The auditor’s comments 

are presented in the Auditor’s Report in the Annual Report. 

8. Investor Relations The Company always gives importance to disclosure of information that is accurate, complete, 

transparent, timely and credible to the shareholders, investors, customers, government agencies and all parties concerned, direct 

or indirect. The Company has assigned the Securities Depository Centre of the Stock Exchange of Thailand the responsibility of 

preparing information to be disclosed to the Stock Exchange of Thailand, including information to be printed and distributed to 

the Company’s shareholders. 

The Company has an Investor relations which handles shareholder inquiries and provides information to investors as 

requested. The Company also makes information available through its web site at http://www.dynastyceramic.com

INTERNAL CONTROLS 

To assure that the policies of Good Corporate Governance are abided by effectively according to the Security Exchange 

of Thailand. The Company has set up the member of Audit Committee consists of the 4 Independent ,name of The Audit Committee 

are as follow 

1. General Yuthasak Sasiprapa Independent Director 

2. Pol. General Patcharawat Wongsuwan Independent Director 

3. Mr. Surasak Kosiyajinda Independent Director 

4. Mr. Yothin Juangpanich Independent Director 

From the assessment of the Company’s internal control in 5 main areas, which are organization and environment, risk 

management, management control, information system, and follow-up and assessment methodsThe Company’s internal control 

system can be concluded as follow 

1. Organization and Environment 

The Company has set up and provided for the establishment of this Organization and has delegated responsibility accordingly 

for management flexibility. The Company stressed the importance on environment conservation. Moreover, the Company 

was set up the manual according to the Industrial Standard for Service Excellence and Environmental and Occupational 

Safety. The Company expects to receive certification ISO 14001 in the near future.The Company also encourages employees 

to enhance the company’s effectiveness by initiating 5S committee to supervise, promote, advice and coordinate the operation 

effectively and to continue to improve workplace to a better and safe environment 

2. Risk Management 

The Company has no Risk Management Committee since the Company appointed the Executive Director Committee 

to oversee the Company’s risk by determine measures and methods to prevent, fix and follow-up on any situation 

that would cause the risk,and proposed report concerning adequacy of risk management system to the Audit Committee 

to further propose to the Board of Directors. 

3. Control of Work Effectiveness of Administrative Department 

The Company has the Audit Committee to responsible for auditing the Company’s operation according to the policies 

and regulations set forth by the Company, the laws and regulations of the relevant regulators and promote the Company to 

have accounting consistent with generally accepted accounting standard. This includes auditing the Company for proper internal 

controls, internal auditing and management practices that minimize risk and are properly controlled, proper, up to date and effective. 

The Audit Committee is non-biased and free to conduct such audits as deemed necessary and may make use of the 

Office of Internal Audit and Compliance Control which directly reports to the Audit Committee. 

The Office of Internal Audit and Compliance Control are responsible to control and assess the proper controls according 

to the Audit Committee’s directions. Whereas, their main job is to assess if there are proper controls to prevent problems 

from occurring, assess the integrity of the information and financial reports and present the information in a timely and transparent 

method to assure that the policies of Good Corporate Governance are abided by effectively according to the international 

standard. 

67

68 

4.Management Information Systems and Communications 

The Company realizes the importance of continuing development of its Management Information Systems for the effectiveness 

and linking of information of the organization. The Company has continuously developed database to enhance management 

decision, so that the management and shareholders can be confident in the Company’s information management system. 

All network and softwares was settled with efficiency and corresponding to the nature of business and under the computer law 

year 2007. 

In the year 2008-2009 the Company has developed POS System by implement Software Dealer Web Application (DWA) 

to replace the old system including Sales report and Inventory movement every day. The Company has continuously developed 

back office software (MOVEX) to enhance Company Reporting System such as Procurement System, Accounting and Financial 

System for better management information in decision and planning effiency. 

5. Follow-up and Assessment Methods 

The Company has continuously followed up on its performance in comparison to its planned goals and budgets. Reports 

were sent to the Company’s Director’s at least every 3 months. Furthermore, if there was found to be an issue impacting 

the Company, additional meetings could be called to change or add to the goals and plans to accommodate with changing 

situation. Additionally, the Company also has the Office of Internal Audit that has the responsibility to audit the various departments 

and units to see if they are working according the goals and budgetary guidelines. If it is found to have a discrepancy, 

the Office of Internal Audit and Compliance Control would report to the Audit Committee within a specified time. In turn, the 

Audit Committee would then report to the Company’s Board of Directors every quarter, whereas the Audit Committee would 

also have to offer its recommendations for a solution to the problem in order to promote effective internal control system of the 

Company.

69 

DIVIDEND PAYMENT POLICY 

The Company’s dividend policy requires the company to distribute the dividend of not less than 70 percent of the 

consolidated net profit after tax, however,DCC Performance and Retained Earning should not be negative and depending 

on the sufficiency to the Company’s Cash Flow and investment plans and other relevant factors. 

Since 2009 the Company can paid dividend to the shareholders more than 85%, In 2010, The company will ask 

th 

for an approval from the shareholders in their first meeting of 2011 held on 26 April 2011 to pay dividend at the rate of 

100% because the company had no more liabilities according to the company’s financial conditions 

Dividend payment in the past year are as follow:

70 

RELATED TRANSACTION 

The Company’s Board of Directors has established approval process for related transactions or transaction that 

may cause potential conflict of interest by strictly adhering to the Securities and Exchange laws, regulations, announcements, 

orders or stipulations established by the Stock Exchange of Thailand, with the following measures. 

1. The Audit Committee must consider and give their comments before transaction occurs. 

2. In case the Audit Committee is not able to give any comment on any transaction, the Company must provide 

independent specialist to provide comments for the Audit Committee to form their comments before proposing to 

the Board of Directors and/or Shareholders’ Meeting for further consideration. 

3. The persons who have potential conflict of interest cannot vote on the transaction that is related to them. 

4. The Company will disclose the related transaction in the notes attached to financial statements. The Audit 

Committee will give comments concerning the necessity and rationale of the related transaction that has been 

reviewed by external accounting auditor. 

Dynasty Ceramic Public Co. Ltd. has connected transactions with its subsidiaries as follows: 

1. The Company is a sole distributor of all ready made products purchased from Tile Top Industry Pubic Co. Ltd., 

which manufactures floor, wall and decorative tiles, at wholesale prices. The Company is the sole distributor. Tile Top 

Industry Public Co. Ltd. contracted Dynasty Ceramic Public Co. Ltd. to manage its operations, inventory (including raw 

materials and packaging), purchasing and sales,financial and accounting systems with an online computer system, with a 

yearly budget of 12 million baht,resulting in connected transactions. 

Dynasty Ceramic Public Co. Ltd. rented warehouse facilities located at Tile Top factory for storage of products 

purchased from Tile Top Industry PCL and contracted Tile Top Industry PCL to manage the Company’s warehouses, within 

a budget of 4 million baht. 

2. Dynasty Ceramic Public Co. Ltd. delivered and sold its own products and those purchased to the three 

distributors, namely Pick and Pay Co. Ltd., Muangthong Ceramic Co. Ltd. and Worldwide Ceramic Co. Ltd., at wholesale 

prices, resulting in connected sales of products. Moreover, Dynasty Ceramic designed shop format and arranged 

management systems for all the three subsidiaries as well as collecting fees on the product distribution right on a yearly 

basis. In addition, the three distributors contracted Dynasty Ceramic Public Co. Ltd. to manage their operations, inventory, 

purchasing and sale,financial and accounting systems with an online computer system, with an annual budget of 

0.3 million baht per branch, resulting in connected transactions. 

Since Dynasty Ceramic is in charge of controlling its own and its subsidiaries’ financial policies, Payments were 

made in advance on some items produced and distributed to Dynasty Ceramic Public Co. Ltd. This is a means of providing 

financial support to its subsidiary, with the borrowers issuing a promissory note to the loan provider. Interest is calculated 

according to prevailing market rates on the date the borrowing was made.The financial statements of Dynasty Ceramic PLC 

include transactions with related companies and the financial statements reflect the effects of these

71 

Companies’ name 

Tile Top Industry Public Co. Ltd. 

Pick and Pay Co., Ltd. 

Muangthong Ceramic Co., Ltd. 

World Wide Ceramic Co., Ltd. 

Akapulgo Co., Ltd. 

Mr. Roongroj Saengsastra 


Mr. Marut Saengsastra 

Relations 

Subsidiary 

Subsidiary 

Subsidiary 

Subsidiary 

Related Company 

Company’s and Its Subsidiary’s director 

Subsidiary’s director 

Subsidiary’s director 

Related party transactions are : 

In Baht 

Consolidated 

The Company Only 

As at 31 As at 31 As at 31 As at่ 31 

Dec 2010 Dec 2009 Dec 2010 Dec 2009 

Trade accounts receivable and other - subsidiaries 

- Pick and Pay Co., Ltd. - - 446,144,377 452,603,434 

- Muangthong Ceramic Co., Ltd. - - 187,827,934 234,098,191 

- World Wide Ceramic Co., Ltd. - - 224,707,252 224,869,611 

858,679,563 911,571,236 

Accounts payable and others – subsidiaries 

- Tile Top Industry Public Co. Ltd. - - 521,570,628 398,103,801 

- Pick and Pay Co., Ltd. - - 77,425 10,000 

- Muangthong Ceramic Co., Ltd. - - - 7,000 

- World Wide Ceramic Co., Ltd. - - - 6,000 

521,648,053 398,126,801

72 

In Baht 

Consolidated 


For the year ended For the year ended 

Price Policy December 31, December 31, 

At the parent 2010 2009 2010 2009 

Revenues from finished goods sold company’s 

- Pick and Pay Co., Ltd. concerns, competitive, - - 2,365,164,395 1,956,784,975 

- Muangthong Ceramic Co., Ltd. market price - - 1,507,391,960 1,422,217,339 

- World Wide Ceramic Co., Ltd. but higher than - - 826,405,296 748,423,187 

production cost 4,698,961,561 4,127,425,501 

Sales of raw materials and supplies At cost 

- Tile Top Industry Public Co. Ltd. - - 4,606,261 4,414,841 


5,330,530 5,412,123 

Revenues from rental charges 

- Tile Top Industry Public Co. Ltd. 30,000 Baht/month - - 360,000 360,000 

- Pick and Pay Co., Ltd. 10,000 Baht/month - - 120,000 120,000 

100,000 Baht/month 1,100,000 

- Muangthong Ceramic Co., Ltd. 12,000 Baht/month - - 144,000 144,000 

- World Wide Ceramic Co., Ltd. 3,000 Baht/month - - 36,000 36,000 

1,760,000 660,000 

Revenues from operations 

- Tile Top Industry Public Co. Ltd. 100,000 Baht/month - - 12,000,000 12,000,000 

- Pick and Pay Co., Ltd. 360,000 Baht yearly/ 

branch in 2010, and 

100,000 Baht yearly/ 

branch in 2009 - - 28,230,000 7,456,989 

- Muangthong Ceramic Co., Ltd. 360,000 Baht yearly/ 



branch in 2009 - - 19,841,666 5,900,000 

- World Wide Ceramic Co., Ltd. 360,000 Baht yearly/ 



branch in 2009 - - 10,488,333 3,100,000 

70,559,999 28,456,989

73 

In Baht 

Consolidated 


For the year ended For the year ended 

Price Policy December 31, December 31, 

2553 2552 2553 2552 

Purchases - finished goods 

- Tile Top Industry Public Co. Ltd. At the parent 

company’s concerns, 

competitive market 

price, but higher than 

production cost - - 2,085,438,341 1,774,668,457 

- Pick and Pay Co., Ltd. At cost - - 186,111 95,890 

- Muangthong Ceramic Co., Ltd. At cost - - 4,445,806 61,802 

- World Wide Ceramic Co., Ltd. At cost - - 47,944 32,715 

2,090,118,202 1,774,858,864 

Purchases of raw materials and supplies 

- Tile Top Industry Public Co. Ltd. At cost - - 11,856,670 10,679,716 

Management fee 

- Tile Top Industry Public Co. Ltd. 300,000 Baht - - 3,600,000 3,600,000 

/month 

Rental branches’ lands 

- Mr. Roongroj Saengsastra 1,000,000 Baht 1,000,000 1,000,000 - - 

yearly/branch 

- Mr. Monrak Saengsastra and 

Mr. Marut Saengsastra 1,000,000 Baht 1,000,000 1,000,000 

yearly/branch 

- Akapulgo Co., Ltd. 81,250 975,000 975,000 - - 

Baht/month

74 

Summary of Operating Results and Financial Analysis 

Dynasty Ceramic Public Company, Limited and its subsidiaries ’analysis of operations’ 

result of 2010 

Million Baht 

Revenues from sales 

Other revenues 

Total revenues 

Cost of goods sold 

Selling expenses 

Adminstrative expenses 

Financial cost 

Parent company’s net profit 

% GP 

Earnings per share 

2010 

6,513 

18 

6,531 

3,630 

720 

466 

0.2 

1,175 

44.3% 

2.88 

2009 

5,884 

21 

5,905 

3,384 

578 

470 

6 

994 

42.5% 

2.44 

% of changes 

11% 

- 14% 

11% 

7% 

21% 

- 1% 

- 96% 

18% 

4% 

18% 

The company and its subsidiaries recorded the total sales revenue of 6,513 million Baht for 2010 or increased 11% 

from last year’s, or 8% increase in the sales volume of 50.6 million m2. The cost of sales in 2010 was 3,630 million Baht in 

total, 55.7% of the total sales, less than last year’s cost of sales which is 57.5% of total sales, resulted in increased gross profit; 

from the previous year’s 42.5% to 44.3% of 2010. This was caused by the raised retail’s selling price of about 4 Baht/m2 (from 

125Baht/m2 to 129 Baht/m2), and the increased production capacity of 15% higher than the previous year’s. The result of the 

increase in production capacity of Tile Top’s factory (subsidiary) at the beginning of the year and of Dynasty’s factory in the 

middle of 2010 made the subsidiaries have total production capacity of 51.6 million m2. Moreover, the continual improvement 

on the machine’s and the production process’ efficiency has helped reduce the production cost, though, the natural gas, which 

is the main component, has raised more than 17% in price in comparison with the previous year. Simultaneously, the company 

and its subsidiaries had 21% higher expenses in freight, equal to 8% of total sales, which has increased accordingly to the 17% 

higher sales and diesel’s price, and the marketing plans which had to keep stimulating the sales rate by holding sales promotion 

campaigns. As for the operational expenses, they decreased from last year just a little bit or about 1% because the company 

had set allowance of doubtful account in accordance with higher sales. The company and its subsidiaries had total interest payable 

of 0.2 million Baht, 96% lower than last year’s because there has been no repayment from both short and long loan. The 

other revenues decreased for the company had made profit of about 14 million Baht from selling asset last year (a subsidiary’s 

office), which made the company and its subsidiaries had total net profit before income tax of 1,695 million Baht, 261 million 

Baht more than the previous year, with income tax of 516 million Baht, making the net profit after income tax 1,179 million Baht; 

1,175 million Baht belongs to the parent company’s shareholders, or 18% higher than the previous year.

75 

Analysis of the company’s and its subsidiaries’ balance sheet 

As of December 31, 2010, compared with 2009 

The balance sheet of the company and its subsidiaries had the total assets of 3,715 million Baht, 2% less than the 

previous year’s. Cash and other equivalent assets decreased 31 million Baht, or 16% because the company used them as 

circulating fund and in the increase of both the company’s and its subsidiaries’ production capacity, so that an extra loan was 

unnecessary. The cash was mostly from selling on cash, and the increased sales of 8%. The ending inventory increased from 

the previous year 52 million Baht, or 5%. The trade accounts receivable lowered 25 million Baht, or 15% due to the increased 

allowance of doubtful accounts of 12 million Baht and the cut of bad debt of 48 million baht. The fixed assets are 94 million 

Baht, or 5% higher because of accrued depreciation and new machines and tools received from the increase of production 

capacity in the beginning and in the middle of the year. 

The company and its subsidiaries had total liabilities of 989 million Baht. The debt to equity ratio was 0.36 times, 

increased from the previous year in which the debt to equity ratio was 0.34 times, because of the increased liabilities of 67 million 

Baht, or 7%, most of them are trade accounts payable due to the ordering of raw materials and replacement parts which were 

higher in number according to the higher production capacity. The shareholders’ equity of 2,726 million Baht, increased 16 

million Baht, or 1% from last year gained from accumulated net profit of 1,179 million Baht. The total paid dividend was 1,163 

million Baht; 224.10 million Baht belonged to the 4th quarter, and 938.4 million Baht belonged to the rest 3 quarters, providing 

a book value per share of 6.68 Baht.

76 

Dynasty Ceramic Public Company Limited’s analysis of operations’ 

result of 2010 

Million Baht 

Revenues from sales 

Other revenues 

Total revenues 

Cost of goods sold 

Selling expenses 

Adminstrative expenses 

Financial cost 

Net profit 

% GP 

Earnings per share 

2010 

5,905 

81 

5,986 

3,834 

629 

107 

0.2 

994 

35.10% 

2.44 

2009 

5,328 

32 

5,360 

3,564 

507 

143 

5 

780 

33.10% 

1.91 

% of changes 

11% 

153% 

12% 

8% 

24% 

- 25% 

- 96% 

27% 

6% 

28% 

The company recorded the total sales revenue of 5,905 million Baht for 2010, increased 577 million Baht or 11%, 

and because of the 12% increased production capacity of Dynasty’s factory in the middle of the year and of Tile Top Industry 

Public Co. Ltd., s subsidiary, in the beginning of the year. This resulted in the total sales of 51.5 million m2, 9% higher than 

the previous year’s. (Sales of last year was 47.1 million m2) The cost of sales in 2010 was 3,834 million Baht, equal to 64.9% 

of the total sales, which made the gross profit be 35.1%, higher than the previous year’s 33.1%. In the first quarter of 2010, 

the company raised approximately 2 Baht/m2 in the selling price. The company has been continually improving the production 

efficiency, making the production cost lower, despite the 17% higher energy cost. We have 24% higher costs of sales mostly 

because of the transportation expense which has been increasing in accordance with the diesel price, raised more than 17% of 

the previous year’s price. The total operation cost was 107 million Baht, 36 million Baht, or 25%, less than the last year’s cost 

because there had been an allowance of doubtful account of 48 million Baht in total, whereas this year’s allowance was 12 

million Baht. The company’s interest payable was 0.2 million Baht in total, 96% less than the previous year because there was 

no accumulated debt which was the result of having cash left from cost of goods sold during the year to be spent on increasing 

the production capacity. The other revenues increased 153% due to billing more to the subsidiaries in managing working 

systems and opening new branches for the subsidiaries, resulting in the company having total net profit before income tax of 

1,368 million Baht, 270 million Baht more than the previous year. The company had set aside a budget of 392 million Baht for 

the income tax of 2010, making the net profit after income tax be 994 million Baht in total, increased 214 million Baht, or 27% 

from the previous year. Earnings per share for 2010 were 2.44 Baht, whereas the previous year’s earnings per share were 1.91 

Bahr; 0.53 Baht higher per share.

77 

Analysis of the company’s balance sheet 

As of December 31, 2010, compared with 2009 

The balance sheet of the company had the total asset of 1,460 million Baht, decreased 169 million Baht, or 10%, from 

the previous year because in 2010, the company had current asset of 1,556 million Baht in total, 66 million Baht, or 4%, less than 

last year. Cash and other equivalent asset decreased 18 million Baht, or 15%, due to the use of the circulating fund to increase the 

production capacity. The inventory increased 3%, the trade accounts receivable decreased 6 million Baht in total, or 5% because 

of the accumulated allowance of doubtful account of 12 million Baht and the cut of bad debt of about 48 million Baht. The total 

value of land, building, and equipment decreased 15 million Baht from last year after receiving additional machine and equipment 

from the increase of the production capacity in the middle of 2010, and deducting the normal depreciation charges. 

The company had total liabilities of 1,107 million Baht, increased 16% from the previous year. The debt to equity ratio 

was 0.76 times, increased from the previous year in which the debt to equity ratio was 0.59 times, because of the increased 

subsidiary accounts payable of 31% (they were all the purchase of finished goods from the subsidiaries, and the expense of 

increasing production capacity in the subsidiary at the beginning of the year of 2010). The trade accounts payable also increased 

9% due to the increase in ordering raw materials and replacement parts according to the higher production capacity at the middle 

of the year. The company has neither short-term nor long-term loan. For the decrease of 169 million Baht in accumulated 

net profit from the previous year, this year had net profit of 994 million Baht and paid dividend of 1,163 million Baht; 224.40 

million Baht belonged to the 4th quarter of 2009, and 938.40 million Baht belonged to the first 3 quarters of 2010, resulting in 

shareholders’ equity of 1,629 million baht as of 31 December, 2010, providing a book value per share of 3.58 Baht. 

Notes: Please refer to the details in the consolidated financial statements, including the Notes to the financial 

statements, for the operating results and financial status of the Company.

78 

DYNASTY CERAMIC PUBLIC COMPANY LIMITED 

THE CONSOLIDATED FINANCIAL STATEMENTS 

AND SEPARATE FINANCIAL STATEMENTS 

FOR THE YEAR ENDED DECEMBER 31, 2010 

AND AUDITOR’S REPORT

79 

AUDITOR’S REPORT 

To 

The Shareholders and Board of Directors of 

Dynasty Ceramic Public Company Limited 

I have audited the consolidated balance sheet of Dynasty Ceramic Public Company Limited and its subsidiaries as at 

December 31, 2010, and the related consolidated statements of income, changes in shareholders’ equity and cash 

flows for the year then ended and the balance sheet of Dynasty Ceramic Public Company Limited as at December 31, 

2010, and the related statements of income, changes in shareholders’ equity and cash flows for the year then ended. 

These financial statements are the responsibility of the Company’s management as to their correctness and completeness 

of the presentation. My responsibility is to express an opinion on these financial statements based on my audit. The 

consolidated financial statements for the year ended December 31, 2009 of Dynasty Ceramic Public Company Limited 

and its subsidiaries and separate financial statements for the year ended December 31, 2009 of Dynasty Ceramic 

Public Company Limited, presented herewith for comparative purposes only, were audited by another auditor, who 

gave an unqualified report thereon dated on February 23, 2010. 

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 financial statements referred to above present fairly, in all material respects, the consolidated financial 

position of Dynasty Ceramic Public Company Limited and subsidiary as at December 31, 2010, the consolidated results 

of their operations, the consolidated changes in their shareholders’ equity and their consolidated cash flows for the year 

then ended and the financial position of Dynasty Ceramic Public Company Limited as at December 31, 2010, the 

results of its operations, changes in its shareholders’ equity and its cash flows for the year then ended in conformity with 

generally accepted accounting principles. 

Karin Audit Company Limited 

Bangkok, Thailand 

February 22, 2011 

(Mr. Jadesada Hungsapruek) 

Certified Public Accountant 

Registration No. 3759

80 


BALANCE SHEETS 

AS AT DECEMBER 31, 2010 AND 2009 

Consolidated 

In Baht 

Separate 

Note 2010 2009 2010 2009 

ASSETS 

CURRENT ASSETS 

Cash and cash equivalents 6 159,912,936 191,229,333 99,266,563 116,507,606 

Current investment - net 7 - - - - 

Trade accounts and notes 

receivable - net 8 146,952,698 171,741,097 124,352,606 130,288,838 

Receivables from subsidiaries 8 , 24.1 - - 858,679,563 911,571,236 

Inventories - net 9 1,161,704,248 1,110,290,809 462,048,241 449,392,285 

Other current assets - net 10 28,148,571 33,740,157 11,269,449 14,202,024 

Total current assets 1,496,718,453 1,507,001,396 1,555,616,422 1,621,961,989 

NON-CURRENT ASSETS 

Investment in subsidiaries 11 - - 127,853,787 127,853,787 

General investment - net 12 249,750 249,750 - - 

Property, plant and equipment - net 13 2,075,050,917 1,980,878,839 873,697,831 820,405,706 

Goodwill - net 14 103,623,825 103,623,825 - - 

Intangible assets - net 15 6,487,944 9,134,407 6,487,944 9,134,407 

Other non-current assets - net 16 32,856,192 31,421,175 3,137,438 2,917,165 

Total non-current assets 2,218,268,628 2,125,307,996 1,011,177,000 960,311,065 

TOTAL ASSETS 3,714,987,081 3,632,309,392 2,566,793,422 2,582,273,054 

Notes to financial statements form an integral part of these statements.

81 


BALANCE SHEETS (CONT.) 


Consolidated 

In Baht 

Separate 

Note 2010 2009 2010 2009 

LIABILITIES AND SHAREHOLDER’S EQUITY 

CURRENT LIABILITIES 

Bank overdrafts and short-term loans 

from financial institutions 17 75,412 2,089,318 75,412 - 

Trade accounts and notes payable 18 495,794,077 446,665,691 258,039,110 237,158,637 

Payable to subsidiaries 24.1 - - 521,570,628 398,103,801 

Accrued income tax 235,690,653 236,901,517 178,097,381 185,735,650 

Other current liabilities 209,053,193 189,633,986 148,854,181 132,039,089 

Total current liabilities 940,613,335 875,290,512 1,106,636,712 953,037,177 

NON-CURRENT LIABILITIES 

Provident fund - pending return 19 48,370,816 47,181,413 - - 

Total non-current liabilities 48,370,816 47,181,413 - - 

TOTAL LIABILITIES 988,984,151 922,471,925 1,106,636,712 953,037,177 


82 


BALANCE SHEETS (CONT.) 


Consolidated 

In Baht 

Separate 

Note 2010 2009 2010 2009 

LIABILITIES AND SHAREHOLDER’S EQUITY 

SHAREHOLDERS’ EQUITY 

Share capital 

Authorized share capital 

408,000,000 ordinary shares 

of Baht 1 each 408,000,000 408,000,000 408,000,000 408,000,000 

Issued and paid-up share capital 

408,000,000 ordinary shares 

of Baht 1 each 408,000,000 408,000,000 408,000,000 408,000,000 

Premium on ordinary shares 506,000,000 506,000,000 506,000,000 506,000,000 

Retained earnings 

Appropriated - legal reserve 21 40,800,000 40,800,000 40,800,000 40,800,000 

Unappropriated 1,733,798,280 1,721,542,515 505,356,710 674,435,877 

Total shareholder’s equity of parent company 2,688,598,280 2,676,342,515 1,460,156,710 1,629,235,877 

Minority interest in subsidiaries 37,404,650 33,494,952 - - 

Total shareholder’s equity 2,726,002,930 2,709,837,467 1,460,156,710 1,629,235,877 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 3,714,987,081 3,632,309,392 2,566,793,422 2,582,273,054 


83 


STATEMENTS OF INCOME 

FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 

Consolidated 

In Baht 

Separate 

Note 2010 2009 2010 2009 

REVENUES 

Sales 24.1 6,512,939,269 5,883,865,063 5,904,595,281 5,327,954,811 

Other income 24.1 18,265,466 20,709,369 80,824,246 31,832,109 

Total revenues 6,531,204,735 5,904,574,432 5,985,419,527 5,359,786,920 

EXPENSES 

Cost of sales 24.1 3,629,743,566 3,383,991,699 3,834,126,393 3,563,854,737 

Selling expenses 702,395,484 578,257,148 628,754,707 507,008,061 

Administrative expenses 24.1 466,209,025 469,928,895 107,469,272 142,863,306 

Management benefit expenses 27 37,403,124 32,365,780 29,045,824 24,839,540 

Total expenses 4,835,751,199 4,464,543,522 4,599,396,196 4,238,565,644 

Income before finance costs and income tax 1,695,453,536 1,440,030,910 1,386,023,331 1,121,221,276 

Finance costs 166,450 5,574,633 163,787 4,911,103 

Income before income tax 1,695,287,086 1,434,456,277 1,385,859,544 1,116,310,173 

Income tax 28 516,321,623 435,256,761 392,138,711 336,324,445 

Net income 1,178,965,463 999,199,516 993,720,833 779,985,728 

Profit attribution 

Shareholder’s equity of the parent company 1,175,055,765 994,361,993 993,720,833 779,985,728 

Minority interest 3,909,698 4,837,523 - - 

1,178,965,463 999,199,516 993,720,833 779,985,728 

Earnings per share of the parent company 22 

Net income (Baht : shares) 2.88 2.44 2.44 1.91 

Weighted average number of 

ordinary shares (shares) 408,000,000 408,000,000 408,000,000 408,000,000 


84 


STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY 


In Baht 

Consolidated 

Shareholder’s equity of parent company Minority Total 


interest in 

Share capital Premium on Appropriated Unappropriated Total subsidiaries 

issued and ordinary legal 

Note paid-up shares reserve 

Beginning balance 2009 408,000,000 506,000,000 40,800,000 1,465,660,522 2,420,460,522 28,657,429 2,449,117,951 

Net income for 

the year 2009 - - - 994,361,993 994,361,993 4,837,523 999,199,516 

Dividend 23 - - - (738,480,000) (738,480,000) - (738,480,000) 

Ending balance 2009 408,000,000 506,000,000 40,800,000 1,721,542,515 2,676,342,515 33,494,952 2,709,837,467 

Net income for 

the year 2010 - - - 1,175,055,765 1,175,055,765 3,909,698 1,178,965,463 

Dividend 23 - - - (1,162,800,000) (1,162,800,000) - (1,162,800,000) 

Ending balance 2010 408,000,000 506,000,000 40,800,000 1,733,798,280 2,688,598,280 37,404,650 2,726,002,930 


85 


STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (CONT.) 


In Baht 

Separate 


Share capital Premium on Appropriated Unappropriated Total 

issued and ordinary legal 

Note paid-up shares reserve 

Beginning balance 2009 408,000,000 506,000,000 40,800,000 632,930,149 1,587,730,149 

Net income for the year 2009 - - - 779,985,728 779,985,728 

Dividend 23 - - - (738,480,000) (738,480,000) 

Ending balance 2009 408,000,000 506,000,000 40,800,000 674,435,877 1,629,235,877 

Net income for the year 2010 - - - 993,720,833 993,720,833 

Dividend 23 - - - (1,162,800,000) (1,162,800,000) 

Ending balance 2010 408,000,000 506,000,000 40,800,000 505,356,710 1,460,156,710 


86 


STATEMENTS OF CASH FLOWS 


Consolidated 

In Baht 

Separate 

Note 2010 2009 2010 2009 

CASH FLOWS FROM OPERATING ACTIVITIES 

Net income 1,178,965,463 999,199,516 993,720,833 779,985,728 

Add (less) Adjustments to reconcile net income to 

net cash provided by (paid for) operating activities : 

Depreciation and amortization 26 339,362,793 331,921,410 151,227,726 152,458,161 

Allowance for doubtful accounts 26 9,665,377 49,005,493 9,859,390 48,227,941 

Allowance for obsolete stock (reverse) (247,178) (188,096) - - 

Loss (gain) on sale / written off fixed assets (2,335,151) 591,803 (287,343) (1,311,235) 

Loss (gain) on sale property foreclosed (105,000) (14,624,250) - - 

Unrealized loss (gain) on exchange rate (198,552) (330,287) (103,361) (280,729) 

Interest received (4,041,251) (273,898) (3,973,549) (155,475) 

Interest expenses 166,450 5,574,633 163,787 4,911,103 

Income tax 516,321,623 435,256,761 392,138,711 336,324,445 

Income (loss) from operating before changes in 

operating assets and liabilities 2,037,554,574 1,806,133,085 1,542,746,194 1,320,159,939 

Operating assets (increase) decrease 

Trade accounts and notes receivable 4,870,637 19,628,100 (13,981,531) 41,865,458 

Receivable from subsidiaries - - 52,891,673 26,547,371 

Inventories (51,166,261) 215,528,586 (12,655,956) 232,953,753 

Other current assets 5,785,597 (2,669,341) 2,932,575 (5,734,048) 

Other non-current assets (3,515,155) (5,721,285) (220,273) (48,000) 

Operating liabilities increase (decrease) 

Trade accounts and notes payable 49,329,115 100,834,070 20,986,011 64,560,263 

Payable to subsidiaries - - 123,466,827 97,495,193 

Other current liabilities 19,414,629 73,896,313 16,810,515 59,454,279 

Provident fund - pending return 1,189,403 957,132 - - 

Cash received (paid) from operating 2,063,462,539 2,208,586,660 1,732,976,035 1,837,254,208 

Income tax paid (517,532,487) (315,979,600) (399,776,980) (235,971,317) 

Net cash provided by operating activities 1,545,930,052 1,892,607,060 1,333,199,055 1,601,282,891 


87 


STATEMENTS OF CASH FLOWS (CONT.) 


Consolidated 

In Baht 

Separate 

Note 2010 2009 2010 2009 

CASH FLOWS FROM INVESTING ACTIVITIES 

Cash paid for purchase of fixed assets (423,291,130) (215,863,750) (192,693,496) (52,729,879) 

Increase in intangible assets - (6,981,877) - (6,981,877) 

Cash received from sale of fixed assets 6,983,786 1,407,411 1,168,224 1,401,869 

Cash received from sale of property foreclosed - 30,000,000 - - 

Cash received from interest income 4,041,251 273,898 3,973,549 155,475 

Net cash used in investing activities (412,266,093) (191,164,318) (187,551,723) (58,154,412) 

CASH FLOWS FROM FINANCING ACTIVITIES 

Increase (decrease) in bank overdrafts and (2,013,906) 1,492,873 75,412 - 

Received short-term loans from financial institutions - 5,765,000,000 - 5,665,000,000 

Payment short-term loans from financial institutions - (6,580,000,000) - (6,380,000,000) 

Dividend (1,162,800,000) (738,480,000) (1,162,800,000) (738,480,000) 

Payment of liabilities under financial lease agreement - (1,630,469) - (1,630,469) 

Interest paid (166,450) (5,763,866) (163,787) (5,075,678) 

Net cash used in financing activities (1,164,980,356) (1,559,381,462) (1,162,888,375) (1,460,186,147) 

Net increase (decrease) in cash and cash equivalents (31,316,397) 142,061,280 (17,241,043) 82,942,332 

Cash and cash equivalents, beginning of years 6 191,229,333 49,168,053 116,507,606 33,565,274 

Cash and cash equivalents, ending of years 6 159,912,936 191,229,333 99,266,563 116,507,606 

Supplement disclosure of non - cash transaction :- 

- During year 2010, there was fixed assets transferred from accounts receivable amount of Baht 10.06 milloin, 

on the consolidated and separated financial statements. 


88 


NOTES TO FINANCIAL STATEMENTS 

DECEMBER 31, 2010 AND 2009 

1. GENERAL INFORMATION 

(a) Legal status and address for company and subsidiaries 

The Company was registered to be a limited public company under the Limited Public Company Act with 

the Ministry of Commerce on March 9, 1994. 

The address of its registered office is as follows: 

37/7, Suthisarnwinijchai Rd., Samsennok, Hueykwang, Bangkok 10310, Thailand. 

The subsidiaries companies: 

Company Date of registration Address Number of Number of 

branches branches 

As at As at 

December December 

31, 2010 31, 2009 

1. Tile Top Industry Public November 23, 1995 37/7, Suthisarnwinijchai Rd., - - 

Company Limited 

Samsennok, Hueykwang, 

Bangkok, 10310, Thailand 

2. Pick and Pay Company Limited January 2, 1992 54 Moo 4 Phaholyothin Rd., 87 branches 79 branches 

Hueykhamin, Nongkae, 

Saraburi, 18230, Thailand 

3. Muangthong Ceramic October 24, 2000 37/7, Suthisarnwinijchai Rd., 58 branches 60 branches 



Bangkok, 10310, Thailand 

4. World Wide Ceramic October 20, 2004 37/7, Suthisarnwinijchai Rd., 32 branches 31 branches 



Bangkok, 10310, Thailand. 

(b) 

Nature of the Company’s business 

Main business activities of the Company and subsidiaries are manufacturing and selling of wall and floor 

ceramic tile.

89 

2. BASIS FOR CONSOLIDATION FINANCIAL STATEMENTS AND OPERATIONS 

2.1 The accompanying consolidated financial statements include the accounts of Dynasty Ceramic Public 

Company Limited and the following subsidiaries which are owned directly and indirectly by the Company. 

Percentage of Holding by 

Dynasty Ceramic Public Co.,Ltd. 

As at December As at December 

31, 2010 31, 2009 Nature of Business 

Tile Top Industry Public Co.,Ltd. 96.83 96.83 Manufacturing and distribution 

of wall and floor ceramic tile 

Pick and Pay Co.,Ltd. 97.99 97.99 Distribution of wall and floor ceramic tile 

Muangthong Ceramic Co.,Ltd. 99.98 99.98 Distribution of wall and floor ceramic tile 

World Wide Ceramic Co.,Ltd. 99.93 99.93 Distribution of wall and floor ceramic tile 

Subsidiaries are companies under control by the Company. Control exists when the Company has the 

power, directly or indirectly, to govern the financial and operating policies of a company so as to obtain benefits from its 

activities. The financial statements of the subsidiaries are included in the consolidated financial statements from the date 

of commencement of control until the date of termination of control. 

2.2 Significant intercompany transactions between the Company and its subsidiaries have been eliminated. 

2.3 The consolidated financial statements are prepared using the same accounting policies for similar accounting 

transactions or accounting events. 

2.4 Goodwill 

The excess of the acquisition cost over the net book value of the subsidiary’s assets is recognized 

as “Goodwill” which is stated at cost less accumulated amortization. The goodwill is amortized as expense 

on a straight-line method over the period of 5 years. 

The excess of the net book value of the subsidiary’s assets over the acquisition cost is recognized as 

“Negative Goodwill” which is stated at cost less accumulated amortization. The negative goodwill is amortized 

as income over the weighted-average of the remaining useful lives of the building and equipment of the 

subsidiary (102 months). 

Since the year 2008, the change in Accounting Standard TFRS 3 “Business Combinations” (revised 

2007) (former TAS 43) has caused the Company to stop recognizing goodwill as amortization expense but to 

consider a review of impairment loss instead and to adjust the caring book value of negative goodwill with 

the beginning retained earnings. 

Goodwill, net of the allowance for impairment, is presented as part of assets in the consolidated balance 

sheet.

90 

3. ADOPTION OF NEW ACCOUNTING STANDARDS 

The Federation regarding new accounting standards and financial reporting standards. These are not 

effective for the current year, except Framework for the Preparation and Presentation of Financial Statements, which is 

immediately effective. 

Effective date 

Framework for the Preparation and Presentation of Financial Statements (revised 2009) Immediate 

TAS 1 (revised 2009) Presentation of Financial Statements 1 January 2011 

TAS 2 (revised 2009) Inventories 1 January 2011 

TAS 7 (revised 2009) Statement of Cash Flows 1 January 2011 

TAS 8 (revised 2009) Accounting Policies, Changes in Accounting Estimates and Errors 1 January 2011 

TAS 10 (revised 2009) Events after the Reporting Period 1 January 2011 

TAS 11 (revised 2009) Construction Contracts 1 January 2011 

TAS 12 Income Taxes 1 January 2013 

TAS 16 (revised 2009) Property, Plant and Equipment 1 January 2011 

TAS 17 (revised 2009) Leases 1 January 2011 

TAS 18 (revised 2009) Revenue 1 January 2011 

TAS 19 Employee Benefits 1 January 2011 

TAS 20 (revised 2009) 

Accounting for Government Grants and Disclosure 

of Government Assistance 1 January 2013 

TAS 21 (revised 2009) The effects of Changes in Foreign Exchanges Rate 1 January 2013 

TAS 23 (revised 2009) Borrowing Costs 1 January 2011 

TAS 24 (revised 2009) Related Party Disclosures 1 January 2011 

TAS 26 Accounting and Reporting by Retirement Benefit Plans 1 January 2011 

TAS 27 (revised 2009) Consolidated and Separate Financial Statements 1 January 2011 

TAS 28 (revised 2009) Investments in Associates 1 January 2011 

TAS 29 Financial Reporting in Hyperinflationary Economies 1 January 2011 

TAS 31 (revised 2009) Interests in Joint Ventures 1 January 2011 

TAS 33 (revised 2009) Earnings per Share 1 January 2011 

TAS 34 (revised 2009) Interim Financial Reporting 1 January 2011 

TAS 36 (revised 2009) Impairment of Assets 1 January 2011 

TAS 37 (revised 2009) Provisions, Contingent Liabilities and Contingent Assets 1 January 2011 

TAS 38 (revised 2009) Intangible Assets 1 January 2011 

TAS 40 (revised 2009) Investment Property 1 January 2011 

TFRS 2 Share-Based Payments 1 January 2011 

TFRS 3 (revised 2009) Business Combinations 1 January 2011 

TFRS 5 (revised 2009) Non-current Assets Held for Sale and Discontinued Operations 1 January 2011 

TFRS 6 Exploration for and Evaluation of Mineral Resources 1 January 2011 

TFRIC 15 Property Construction Contracts 1 January 2011 

The management of the Company is still evaluating the effect of these accounting standards and has not been 

able to reach a conclusion as to their effect to the financial statements for the year in which they are initially applied.

91 

4. SIGNIFICANT ACCOUNTING POLICIES 

4.1 Basis for preparation financial statements 

The financial statements have been prepared in accordance with the accounting standards prescribed 

by Thai Accounts Act enunciated under the Accounting Profession Act B.E.2547. The presentation of the 

financial statements has been made in compliance with the Notification of the Department of Business 

Development, the Ministry of Commerce, re : the financial statements presentation B.E. 2552 for public 

limited company, issued under the Accounting Act B.E.2543. 

The financial statements in Thai language are the official statutory financial statements of the Company. 

The financial statements in English language have been translated from such financial statements in Thai 

language. 

The financial statements have been prepared on a historical cost basis except where otherwise disclosed 

in the accounting policies. 

4.2 Recognition of revenues and expenses 

Sales are recognized upon delivery of goods at the net value after discounts. 

The Company and its subsidiaries recognizes expenses on the accrual basis. 

4.3 Cash and cash equivalents 

Cash and cash equivalents consist of cash in hand and at banks and deposits at financial institutions 

which are promissory notes with original maturity of 3 months or less and excluded deposits which are 

pledged as collateral. 

4.4 Investments in marketable securities 

Investment in marketable securities - trading securities are stated at the fair value. The cost of investment 

in marketable securities is computed by the weighted average method. 

4.5 Allowance for doubtful accounts 

The Company and its subsidiaries provide allowance for doubtful accounts equal to the estimated 

collection losses that may be incurred in the collection of all receivables. The estimated losses are based on 

historical collection experience and the possible impact of the economic conditions. 

4.6 Inventories 

Inventories are shown at the lower of cost or net realizable value. Cost is calculated using the average 

cost method. 

Net realizable value is the estimated selling price in the ordinary course of business less the estimated 

costs of completion and the estimated costs necessary to make the sale. 

The allowance for decline in value of inventories is assessed from the net realizable value and long-time 

outstanding and defective or damaged inventories.

92 

4.7 Investment in subsidiaries 

Investments in subsidiaries (The Separate financial) are stated at cost method. The Company recognizes gain or loss on 

sale in the statement of income in the period which sale of investment occurred. In the case of impairment on 

investment, the Company will recognize loss from impairment of investment as expense in the statement of income. The 

Company recognizes dividends receive when the subsidiaries announce paid dividends. 

4.8 Investments in Shares (General Investment) 

Long-term investments in other companies are stated at cost method. The Company and its subsidiaries 

recognizes gain or loss on sale in the statement of income in the period which sale of long-term investments 

occurred. In the case of impairment on investment, The Company and its subsidiary will recognize loss from 

impairment of investment as expense in statement of income. 

4.9 Property, plant and equipment 

Land is stated at Cost. 

Plant and equipment are stated at cost less accumulated depreciation. 

Depreciation is calculated by the straight-line method, based on the estimated useful lives of the assets 

as follows: 

Building 20 years 

Machinery and equipment 10-15 years 

Vehicles 5 years 

Equipment and tools 5 years 

Office equipment 5 years 

4.10 Borrowing cost 

The Company and subsidiaries capitalize the interest of the loans for construction of factory building, 

office building and machinery as cost of such assets. The Company and its subsidiaries cease to capitalize 

the related interest as part of acquisition cost when the construction of assets are completed. 

4.11 Intangible assets 

Intangible assets are stated at cost less accumulated amortization. Amortization of intangible assets is 

calculated by reference to their costs on a straight-line basis over the following estimated useful lives: 

Software 5 years

93 

4.12 Property foreclosed and assets not used in operation 

Property foreclosed - land of which the Company takes possession from its receivable is stated at the 

lower of the amount due to the company or net realizable value. 

Property foreclosed - land and the old building, land is stated at cost and old building is stated at cost 

less accumulated depreciation, depreciation is calculated by the straight - line method, based on the 

estimated useful lives of assets as 20 years. 

Asset not used in operation - machinery is stated at less allowance for impairment (If any). The Company 

recognizes impairment loss on the assets in the statement of income for the period in which they are 

incurred. 

4.13 Impairment of assets 

The Company and its subsidiaries review the impairment of assets whenever events indicate that the 

carrying value of an asset exceeds its realizable value. Realizable value is determined the value of an asset’s 

net selling price and its value in use whichever is higher. The value in use is derived from management 

estimates. 

The Company and its subsidiaries recognize an impairment loss in the earnings statements whenever the 

carrying value of an asset exceeds its realizable value. The Company and its subsidiaries will reverse the 

impairment loss when there are indications that the value of the asset is no longer impaired or the amount of 

impairment has decreased. 

4.14 Foreign currencies transactions 

Transactions in foreign currencies throughout the year are recorded in Baht at rates prevailing at the 

date of transactions. Outstanding assets and liabilities denominated in foreign currencies at end of period are 

converted into Baht at the rates of exchange prevailing on that date. Profit (loss) on exchange is recognized 

in the profit and loss statement. 

4.15 Corporate income tax 

Corporate income tax of the Company for the year 2008 to 2010 is calculated on net income of the nonpromoted 

activity after adding back certain expenses and allowances which are forbidden expenses in tax 

computation at the rate of 25 percent from the initial profit under Baht 300 million and 30 percent from profit 

over Baht 300 million. The tax rates applied are in compliance with the provision of Royal Decree 475 (B.E. 

2551) dated July 29, 2008, issued under the Revenue Code, regarding the reduction of income tax rates. 

Corporate income tax for two subsidiaries is calculated based on net income of the non-promoted 

activity after adding back certain expenses and allowances which are forbidden expenses in tax computation 

at 30 percent of net profit before income tax. 

Corporate income tax for two subsidiaries is calculated based on net income of the non-promoted 

activity after adding back certain expenses and allowances which are forbidden expenses in tax computation 

at the rates as follows:

94 

profit before income tax expenses (Baht) Rate 

1 - 150,000 Exempted 

150,001 - 1,000,000 15 % 

1,000,001 - 3,000,000 25 % 

More 3,000,000 30 % 

4.16 Use of estimates in the preparation of financial statements 

The preparation of financial statements in conformity with generally accepted accounting principles 

requires management to make estimates and assumptions that affect the reported amounts of assets, 

liabilities, revenues and expenses and disclosure of contingent assets and liabilities. Actual results could 

differ from those estimates. 

4.17 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. 

4.18 Financial instruments 

The Company and its subsidiaries have no policy to speculate in or engage in the trading of any financial 

derivative instruments. 

Financial instruments carried in the balance sheet include cash and cash equivalents, current investments, 

trade accounts receivable, loans to subsidiaries, trade accounts payable, loans from subsidiaries and loans 

from financial institutions. The particular recognition methods adopted are disclosed in the individual policy 

statements associated with each item. 

4.19 Finance lease 

Leases of assets that substantially transfer to the Company and its subsidiaries all the rewards and risks 

of ownership of assets and that the Company and its subsidiaries intends to exercise the option of the leases 

to purchase the assets at the expiration of the lease term, are accounted for as finance leases. 

At the inception of a finance lease, the cost of the asset is recorded together with the obligation, 

excluding the interest element, to pay future rentals. Finance charges are charged to the current period 

operations in proportion to the effective rate.

95 

4.20 Operating Lease 

Lease of assets under which all the risks and rewards of ownership are effectively retained by the lesser 

are classified as operating leases. Lease payments under an operating lease are recognized as an expense 

on a systematic basis over the lease term. 

4.21 Employee benefits 

Salaries, wages, bonuses, contributions to the social security fund and provident fund are recognized as 

expenses when incurred. 

4.22 Earnings per share 

Basic earnings per share are calculated by dividing the net profit for the year by the weighted average 

number of ordinary shares which are issued and paid-up during the year. 

5. SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES 

The preparation of financial statements in conformity with generally accepted accounting principles at times 

requires management to make subjective judgments and estimates regarding matters that are inherently uncertain. 

These judgments and estimates affect reported amounts and disclosures and actual results could differ. The 

significant accounting judgments and estimates are as follows: 

Allowance for doubtful accounts 

Allowances for doubtful accounts are intended to adjust the value of receivables for probable credit losses. 

The management uses judgment to establish reserves for estimated losses for each outstanding debtor. The 

allowances for doubtful accounts are determined through a combination of specific reviews, collection experience, 

and analysis of debtor aging, taking into account changes in the current economic conditions. However, the use 

of different estimates and assumptions could affect the amounts of allowances for receivable losses and adjustments 

to the allowances may therefore be required in the future. 

Impairment of investments 

The Company and subsidiaries treat investments as impaired when there has been a significant or prolonged 

decline in the fair value below their cost or where other objective evidence of impairment exists. The determination 

of what is “significant” or “prolonged” requires judgment. 

Depreciation 

In calculating depreciation of plant and equipment, the management estimates useful lives and salvage 

values of the plant and equipment and reviews estimated useful lives and salvage values if there are any changes. 

Intangible assets 

Intangible assets are systematically amortized over their estimated useful lives, and are subject to impairment 

if there is an indication they may be impaired.

96 

Impairment of Inventory 

In order that financial statements report present value of inventory and performance. The company has 

reviewed and revised policy for impairment of inventory to cover all inventories, which include finished goods, raw 

material, spare part and supply. The impairment is considered when book value of inventory is higher than its net 

realizable value and when the inventory has no movement for a certain period, whichever is practical. 

6. CASH AND CASH EQUIVALENTS 

Cash and cash equivalents consist of the following : 

In Baht 

Consolidated 

Separate 

As at December As at December As at December As at December 

31, 2010 31, 2009 31, 2010 31, 2009 

Cash in hand 2,897,977 4,206,252 90,000 90,000 

Cash at bank - current accounts 19,297,847 70,756,928 8,935,932 32,178,094 

Cash at bank - saving accounts 137,717,112 116,266,153 90,240,631 84,239,512 

Total 159,912,936 191,229,333 99,266,563 116,507,606 

The above cash at bank - saving accounts bear interest at the floating rate which are set by the bank. 

7. CURRENT INVESTMENTS - NET 

Investment in marketable securities - net are included in current investment and consist of the following : 

In Baht 

Consolidated 

Separate 


31, 2010 31, 2009 31, 2010 31, 2009 

Investment in marketable 

securities-trading securities 156,400 156,400 156,400 156,400 

Less Allowance for diminution 

in value of securities (156,400) (156,400) (156,400) (156,400) 

Net - - - - 

As at December 31, 2010 and 2009, investment in securities has aggregated cost of Baht 156,400. The 

Company has recorded allowance for diminution in value such securities amounting to Baht 156,400. It consisted of 

investment in a list financial institution which has been ordered to wind up operations by the Ministry of Finance on 

December 8, 1997.

97 

8. TRADE ACCOUNTS AND NOTES RECEIVABLE - NET AND RECEIVABLE FROM SUBSIDIARIES 

The accounts receivable were classified by aging as follows: 

In Baht 

Consolidated 


31, 2010 31, 2009 

Not over 90 days 135,020,578 148,330,157 

Over 91 days to 120 days 7,307,399 7,619,144 



Over 365 days 15,088,039 52,439,524 

Total 162,312,601 224,755,437 

Less Allowance for doubtful accounts (15,359,903) (53,014,340) 

Trade Accounts and Notes receivable - net 146,952,698 171,741,097 

In Baht 

Separate 


31, 2010 31, 2009 

Not over 90 days 949,947,724 977,823,991 




Over 365 days 15,088,039 52,439,524 

Total 998,392,072 1,094,874,414 

Less Allowance for doubtful accounts (15,359,903) (53,014,340) 

Trade Accounts, Notes receivable, Receivable from subsidiaries - net 983,032,169 1,041,860,074 

The Company gives to the general customers a credit term ranging 7 - 75 days and 150 days for subsidiary 

companies. The subsidiaries give to the general customers a credit term ranging 7 - 60 days. 

Allowance for doubtful accounts is changed during the years are as follows: 

In Baht 

Consolidated 

Separate 

For the year 2010 For the year 2009 For the year 2010 For the year 2009 

Beginning balance 53,014,340 4,981,332 53,014,340 4,828,021 

Increase 11,301,612 49,047,463 11,301,612 49,047,463 

Decrease (48,956,049) (1,014,455) (48,956,049) (861,144) 

Ending balance 15,359,903 53,014,340 15,359,903 53,014,340

98 

In the year of 2010, the decrease in allowance for doubtful accounts was because the Company reversed 

allowance for doubtful accounts in the part of debts had been paid of Baht 1.45 million, and written-off allowance for 

doubtful account amount of Baht 47.51 million due to the Court had commanded the repayment but there has no any 

asset to extorted from an account receivable. (Note 28) 

In 2009, the decrease in allowance for doubtful accounts was because the Company reversed allowance for 

doubtful accounts in the part of debts had been paid of Baht 0.82 million and wrote-off in bad debts of 0.04 million and 

the subsidiary wrote-off in bad debts of Baht 0.15 million. 

9. INVENTORIES - NET 

Inventories-net consist of the following : 

In Baht 

Consolidated 

Separate 


31, 2010 31, 2009 31, 2010 31, 2009 

Finished goods 897,945,123 861,878,913 312,157,870 313,106,586 

Work in process 37,428,756 39,633,248 18,314,078 20,622,183 

Raw materials 109,414,291 96,770,384 61,174,292 47,965,009 

Supplies 97,299,485 109,891,179 59,054,438 64,127,674 

Goods in transit 23,053,940 5,801,610 11,347,563 3,570,833 

Total 1,165,141,595 1,113,975,334 462,048,241 449,392,285 

Less Allowance for obsoleted stock (3,437,347) (3,684,525) - - 

Net 1,161,704,248 1,110,290,809 462,048,241 449,392,285 

Allowance for obsolete stock is changed during the years are as follows : 

In Baht 

Consolidated 

Separate 

For the year 2010 For the year 2009 For the year 2010 For the year 2009 

Beginning balance 3,684,525 3,872,621 - - 

Increase - - - - 

Decrease (247,178) (188,096) - - 

Ending balance 3,437,347 3,684,525 - - 

In 2010 and 2009, the subsidiaries reversed the allowance for obsoleted stock and raw materials amount of 

Baht 0.25 million and 0.19 million, respectively because they were sold during the years and drawn out to use in 

production the reversal of allowance for inventory devaluation effected in statement of income for the years.

99 

10. OTHER CURRENT ASSETS - NET 

Other current assets - net consist of the following: 

Consolidated 

In Baht 

Separate 


31, 2010 31, 2009 31, 2010 31, 2009 

Miscellaneous receivable 8,438,492 6,424,917 1,738,819 644,153 

Less Allowance for doubtful accounts (4,269,204) (4,463,216) - - 

Miscellaneous receivable - net 4,169,288 1,961,701 1,738,819 644,153 

Receivables - The Revenue Department 3,389,583 11,331,768 - - 

Unamortization-Purchase Tax 7,654,911 7,330,099 3,242,739 3,456,003 

Sale promotion rewards and event supplies 4,370,895 7,814,235 4,370,895 7,814,235 

Other current assets 8,563,894 5,302,354 1,916,996 2,287,633 

Total 28,148,571 33,740,157 11,269,449 14,202,024 

Allowance for doubtful accounts-miscellaneous receivable were changed during the years as follows: 

In Baht 

Consolidated 

Separate 


31, 2010 31, 2009 31, 2010 31, 2009 

Beginning balance 4,463,216 3,685,665 - - 

Increase 251,988 1,105,197 - - 

Decrease (446,000) (327,646) - - 

Ending balance 4,269,204 4,463,216 - - 

In 2010 and 2009, allowance for doubtful accounts decreasing by Baht of 0.45 million and 0.33 million, 

respectively, because the subsidiaries received cash back from receivable.

100 

11 INVESTMENT IN SUBSIDIARIES 

Investment in subsidiaries consists of the following: 

In Baht 

Company’s Nature of Paid-up Percentage of holding (%) Cost Method 

name Business share capital As at As at As at As at Dividend 

(In Baht) December December December December 

31, 2010 31, 2009 31, 2010 31, 2009 

Subsidiaries companies: 

Tile Top Industry Manufacturing 

Public Co.,Ltd. and distribution 

of wall and floor 

ceramic tile 222,000,000 96.83 96.83 109,479,530 109,479,530 - 

Pick and Pay Distibution of wall and 

Co.,Ltd. floor ceramic tile. 12,000,000 97.99 97.99 12,519,986 12,519,986 - 

Muangthong Distibution of wall 

Ceramic Co.,Ltd. and floor ceramic tile. 4,500,000 99.98 99.98 4,790,334 4,790,334 - 

WorldWide Ceramic Distibution of wall and 

Co.,Ltd. floor ceramic tile. 1,000,000 99.93 99.93 1,063,937 1,063,937 - 

Total 127,853,787 127,853,787 

12. GENERAL INVESTMENTS - NET 

General investments-net consist of the following : 

Consolidated 

In Baht 

Separate 


31, 2010 31, 2009 31, 2010 31, 2009 

General investment 499,500 499,500 - - 

Less Provision for impairment of general investment (249,750) (249,750) - - 

Net 249,750 249,750 - -

101 

Provision for impairment of investment is changed during the years as follows: 

In Baht 

Consolidated 

Separate 


31, 2010 31, 2009 31, 2010 31, 2009 

Beginning balance 249,750 249,750 - - 

Increase - - - - 

Decrease - - - - 

Ending balance 249,750 249,750 - - 

13. PROPERTY, PLANT AND EQUIPMENT - NET 

Property, plant and equipment - net consist of the following :. 

In Thousand Baht 

Consolidated 

Balance as at Additions Deduction Transfer in (out) Balance as at 

December 

December 

31,2009 31,2010 

At cost 

Land 264,516 52,165 - 18 316,699 

Buildings and construction 1,212,555 5,868 (4,127) 43,575 1,257,871 

Building improvements 44,460 2,745 (1,003) 880 47,082 

Machinery and equipment 3,371,717 5,245 - 218,574 3,595,536 

Less Loss on devaluation (655) - - - (655) 

Machinery and equipment - net 3,371,062 5,245 - 218,574 3,594,881 

Furniture, fixture and office equipment 456,638 20,465 (12,213) 2,128 467,018 

Vehicles 84,964 20,392 (26,813) 110 78,653 

Construction in progress 107,023 326,472 (544) (265,285) 167,666 

Total 5,541,218 433,352 (44,700) - 5,929,870 

Less Accumulated depreciation 

Buildings and construction (556,234) (57,789) 1,794 - (612,229) 

Building improvements (10,979) (3,423) 223 - (14,179) 

Machinery and equipment (2,567,498) (224,034) - - (2,791,532) 

Furniture, fixture and office equipment (363,172) (39,271) 12,100 - (390,343) 

Vehicles (62,456) (10,014) 25,934 - (46,536) 

Total accumulated depreciation (3,560,339) (334,531) 40,051 - (3,854,819) 

Property, plant and equipment-net (1,980,879) 2,075,051

102 


Consolidated 


December 

December 

31,2008 31,2009 

At cost 

Land 259,466 5,050 - - 264,516 

Buildings and construction 1,181,782 7,084 (2,280) 25,969 1,212,555 

Building improvements 40,208 2,763 (508) 1,997 44,460 

Machinery and equipment 3,326,921 2,731 (1,644) 43,709 3,371,717 


Machinery and equipment - net 3,326,266 2,731 (1,644) 43,709 3,371,062 

Furniture, fixture and office equipment 463,569 40,142 (48,944) 1,871 456,638 

Vehicles 90,674 98 (5,808) - 84,964 

Construction in progress 22,573 157,996 - (73,546) 107,023 

Total 5,384,538 215,864 (59,184) - 5,541,218 


Buildings and construction (491,331) (65,772) 869 - (556,234) 

Building improvements (7,644) (3,558) 223 - (10,979) 

Machinery and equipment (2,366,291) (202,745) 1,538 - (2,567,498) 


Vehicles (57,096) (11,167) 5,807 - (62,456) 

Total accumulated depreciation (3,288,007) (329,517) 57,185 - (3,560,339) 

Property, plant and equipment-net 2,096,531 1,980,879

103 


Separate 


December 

December 

31,2009 31,2010 

At cost 

Land 120,634 32,665 - - 153,299 

Buildings and construction 358,780 5,797 - 3,476 368,053 

Machinery and equipment 1,708,914 3,868 - 122,721 1,835,503 


Machinery and equipment - net 1,708,259 3,868 - 122,721 1,834,848 

Furniture, fixture and office equipment 300,433 9,674 (3,667) 115 306,555 

Vehicles 40,015 3,355 (3,638) - 39,732 


Total 2,539,471 202,754 (7,305) - 2,734,920 


Buildings and construction (170,336) (17,175) - - (187,511) 

Building improvements (1,294,747) (96,447) - - (1,391,194) 

Machinery and equipment (230,902) (28,894) 3,665 - (256,131) 


Vehicles (1,719,065) (148,581) 6,424 - (1,861,222) 

820,406 873,698

104 


Separate 


December 

December 

31,2008 31,2009 

At cost 

Land 120,634 - - - 120,634 

Buildings and construction 353,055 265 - 5,460 358,780 

Machinery and equipment 1,690,900 397 (699) 18,316 1,708,914 


Machinery and equipment - net 1,690,245 397 (699) 18,316 1,708,259 

Furniture, fixture and office equipment 299,173 32,989 (32,220) 491 300,433 

Vehicles 45,723 98 (5,806) - 40,015 


Total 2,525,466 52,730 (38,725) - 2,539,471 

Less Accumulated depreciation (152,478) (17,858) - - (170,336) 

Buildings and construction (1,204,311) (91,129) 693 - (1,294,747) 

Building improvements (227,201) (35,837) 32,136 - (230,902) 

Machinery and equipment (22,846) (6,040) 5,806 - (23,080) 

Furniture, fixture and office equipment (1,606,836) (150,864) 38,635 - (1,719,065) 

Vehicles 918,630 820,406 

As at December 31, 2010 and 2009, the Company and a subsidiary’s land at book value of Baht 223.09 million 

(Separated: Baht 120.63 million) and the existing and future construction were mortgaged as collateral against overdrafts 

and loans from financial institution. (Note 17) 

A part of the above land for construction of head office building amounting to Baht 73 million (2.7% of total area) 

was registered the servitudes on such land. 

As at December 31, 2010 and 2009, the cost price of the building and equipment which have been fully 

depreciated but still in use are as follows: 

In Baht 

Consolidated 

Separate 


31, 2010 31, 2009 31, 2010 31, 2009 

Building and construction 55,395,321 9,973,613 44,503,907 4,592,797 

Machinery and equipment 1,243,539,450 1,238,600,854 759,648,070 758,410,680 

Furniture , fixture and office equipment 268,384,621 252,204,990 169,294,388 148,539,138 

Vehicles 25,440,502 33,544,752 9,162,142 9,750,142 

Total 1,592,759,894 1,534,324,209 982,608,507 921,292,757

105 

14. GOODWILL – NET 

The excess of the acquisition cost over the net book value of the subsidiary’s assets is recognized as “Goodwill” 

which is stated at cost less accumulated amortization. The goodwill is amortized as expense on a straight-line method 

over the period of 5 years. 

The excess of the net book value of the subsidiary’s assets over the acquisition cost is recognized as “Negative 

Goodwill” which is stated at cost less accumulated amortization. The negative goodwill is amortized as income over the 

weighted-average of the remaining useful lives of the building and equipment of the subsidiary (102 months). 

Since 2008, the change in Accounting Standard TFRS 3 “Business Combinations” (revised 2007) (former TAS 

43) has caused the Company to stop recognizing goodwill as amortization expense in accordance with the basis for 

preparation of financial statements in Note 2.4, but to consider a review of impairment loss instead and to adjust the 

caring book value of negative goodwill with the beginning retaining earnings. 

Goodwill, net of allowance for impairment of investment, are presented as part of assets in the consolidated 

balance sheet. 

Goodwill - net are as follows: 

In Baht 


31, 2010 31, 2009 

Goodwill, beginning balances 103,623,825 103,623,825 

LessAllowance for impairment - - 

Goodwill, ending balances 103,623,825 103,623,825 

15. INTANGIBLE ASSETS - NET 

Intangible assets - net consists of the following : 

In Baht 

Consolidated/Separate 

Balance as at Additions Deduction Balance as at 

December 

December 

31, 2009 31, 2010 

At cost 

Computer software 13,232,317 - - 13,232,317 

Less Accumulated amortization 

Computer software (4,097,910) (2,646,463) - (6,744,373) 

Intangible assets - net 9,134,407 6,487,944

106 

In Baht 

Consolidated/Separate 

Balance as at Additions Deduction Balance as at 

December 

December 

31, 2008 31, 2009 

At cost 

Computer software 6,250,440 6,981,877 - 13,232,317 

Less Accumulated amortization 

Computer software (2,503,601) (1,594,309) - (4,097,910) 

Intangible assets - net 3,746,839 9,134,407 

16. OTHER NON-CURRENT ASSETS - NET 

Other non - current assets - net consists of the following : 

In Baht 

Consolidated 

Separate 


31, 2010 31, 2009 31, 2010 31, 2009 

Property foreclosed - net from 

accumulated depreciation 5,200,852 5,200,852 4,121,865 4,121,865 

LessAllowance for impairment (2,371,106) (2,266,106) (1,307,119) (1,307,119) 

Property foreclosed - net 2,829,746 2,934,746 2,814,746 2,814,746 

Non-operated machinery 4,647,318 4,647,318 4,647,318 4,647,318 

LessAllowance for impairment (4,647,318) (4,647,318) (4,647,318) (4,647,318) 

Non-operated machinery - net - - - - 

Deposit and guarantee 6,403,835 5,830,983 322,692 102,419 

Leasehold right - land, net 8,321,771 8,440,243 - - 

Prepaid rental land expenses 14,539,333 13,454,894 - - 

Restricted deposit 761,507 760,309 - - 

Total 32,856,192 31,421,175 3,137,438 2,917,165 

For the years ended December 31, 2010 and 2009 the subsidiaries has amortization Leasehold right – land in 

statements of income amount of Baht 2.2 million and Baht 2.0 million, respectively.

107 

In Baht 

Consolidated 

Separate 


31, 2010 31, 2009 31, 2010 31, 2009 

Beginning balance 6,913,424 6,913,424 5,954,437 5,954,437 

Increase 105,000 - - - 

Decrease - - - - 

Ending balance 7,018,424 6,913,424 5,954,437 5,954,437 

The Company’s property foreclosed comprises land of which the Company takes possession from its accounts 

receivable. 

The subsidiary’s property foreclosed comprises land which was seized from its accounts receivable as well as 

the land and the old office building. 

The restricted deposit of the two subsidiaries was used to guarantee against the legal case, which was charged 

on the subsidiary, seeking damages as of December 31, 2010 and 2009 in the amount of Baht 0.68 million and 0.66 

million respectively (the subsidiaries above has already made a complete and full record of the damages) and to 

guarantee against the other subsidiaries for electricity usage amount of Baht 0.11 million. 

17. BANK OVERDRAFTS AND SHORT-TERM LOANS FROM FINANCIAL INSTITUTIONS 

Bank overdrafts and short-term loans from financial institutions consists of the following : 

In Baht 

Consolidated 

Separate 


31, 2010 31, 2009 31, 2010 31, 2009 

Bank overdrafts 75,412 2,089,318 75,412 -

108 

Million Baht 

Credit line 

As at As at Rate Due Date Guarantee 


31, 2010 31, 2009 

Bank overdraft 

The Company 40 30 At the floating rate at One year - By the mortgage of land and 

MOR per annum 

the existing and future 

construction thereon 

The subsidiaries 44.80 44.80 At the floating rate at One year - By the mortgage of the major 

MOR per annum to MOR 

portion of land and the existing 

less 0.5% per annum 

and future construction thereon 

- By the mortgage of land and 

construction (property 

foreclosed) *** 

- By the Company 

Short-term loans 

The Company 1,500 1,150 At the floating rate at the Due at call - By the mortgage of land and the 

lower of at MLR - 1.5% 

existing and future construction 

and MMR per annum 

thereon 

At the average floating rate - By a subsidiary 

In 2010 : 2.64% per annum 

In 2009 : 3.00% per annum 

The subsidiaries 620 570.21 At the floating rate at Due at call - By the mortgage of the major 

MMR per annum 

portion of land and the existing 

At the average floating rate and future construction thereon 

In 2009 : 4.01% per annum - By the mortgage of land and 




As at December 31, 2010 and 2009, as for the short - term loans in subsidiary credit line 620 Baht million and 

Baht 570.21 million, respectively, the Company has a joint credit line of short-term loan with the subsidiary in the 

amount of Baht 520 million.

109 

Million Baht 

Credit line 

As at As at Rate Due Date Guarantee 


31, 2010 31, 2009 

Liabilities under trust 

receipts 

The Company 70 20 At the floating rate at Maturity on - By the mortgage of land and 

MLR less 1.5% per annum agreement the existing and future 

construction thereon 

- By a subsidiary 

The subsidiaries 20 119.79 At the floating rate at Maturity on - By the mortgage of the major 

MOR per annum agreement portion of land and the existing 

and future construction thereon 

- By the mortgage of land and 




*** As at July 3, 2009, the subsidiary sold land and the old office building (property foreclosed) and the 

subsidiary has redeemed the mortgaged on that day. 

The Company and its subsidiaries have to comply with the covenants and adhere to the terms under the bank 

overdraft and short-term loan agreements, such as not to default on loan payments, not to transfer right or entitlement, 

not to change type of business unless prior approval is obtained from the lender, not to change the management 

structure and to name the lender as the beneficiary of the asset protection insurance, etc. 

18. TRADE ACCOUNTS PAYABLE AND NOTES PAYABLE 

Trade accounts and notes payable classified by foreign currencies as at December 31, 2010 and 2009 are as follows : 

Consolidated 

In Currencies (Units) 

In Baht 


31, 2010 31, 2009 31, 2010 31, 2009 

Baht 479,020,577 435,332,972 479,020,578 435,332,972 

Euro 354,767 235,468 14,278,078 11,332,719 

US. Dollar 82,367 - 2,495,421 - 

495,794,077 446,665,691

110 

Separate 

In Currencies (Units) 

In Baht 


31, 2010 31, 2009 31, 2010 31, 2009 

Baht 246,198,279 229,114,233 246,198,279 229,114,233 

Euro 232,205 167,145 9,345,410 8,044,404 

US. Dollar 82,367 - 2,495,421 - 

258,039,110 237,158,637 

19. PROVIDENT FUND - PENDING RETURN 

In Baht 

Consolidated 


31, 2010 31, 2009 

Beginning balance 47,181,413 46,224,281 

Increase in provident fund in the years 2,395,977 2,246,055 

Payment in the years (1,206,574) (1,288,923) 

Ending balance 48,370,816 47,181,413 

The subsidiary contributes to the old provident fund, which is self - managed by the subsidiary, an amount 

based on the number of years employed at the rate specified and subsidiary paid benefit to such provident fund at rate 

5.5% per annum as per the subsidiary’s regulations. The employees will receive the portion contributed by the 

subsidiary plus interest upon their termination. 

20. PROVIDENT FUND 

The Company established a provident fund covering all of its employees in accordance with the provident Fund 

Act B.E. 2530. The employees contribute to the fund at the amount equivalent to 5% of the basic salaries and the 

Company contributes to each employee an amount based on the number of years employed at the specified rate. The 

Company appointed a fund manager to manage the fund in accordance with the terms and conditions prescribed in 

the Provident Fund Act B.E.2530. 

A subsidiary established a provident fund covering all of its employees, which the fund is a self-managed fund 

(not in accordance with the Provident Fund Act B.E.2530). The employees contribute to the fund at the amount 

equivalent to 5% of the basic salaries and the subsidiary contributes an amount based on the number of years 

employed at the specified rate.

111 

Since July 1, 2003, the said subsidiary established a provident fund covering all of its employees in accordance 

with the Provident Fund Act B.E. 2530. The employees contribute at the amount equivalent to 5% of the basic salaries 

and the subsidiary contributes an amount based on the number of years employed. The subsidiary appointed a fund 

manager to manage the fund in accordance with the terms and conditions prescribed in the Provident Fund Act B.E. 

2530. The old provident fund remains with the subsidiary and is presented as “Provident fund - pending return” in the 

subsidiary’s balance sheet. (Note 19) 

The Company and its subsidiary’s contribution for the years ended as at December 31, 2010 and 2009 

amounted to Baht 16.05 million and Baht 15.11 million, respectively. (Separated: Baht 7.71 million and Baht 7.26 million, 

respectively) 

21. LEGAL RESERVE 

Under the provision of the Public Limited Companies Act B.E.2535, the Company and its subsidiary are 

required to appropriate at least 5% of its annual net income after deduction of the deficit brought forward (if any) as 

reserve fund until the reserve reaches 10% of the authorized share capital. This legal reserve is not available for dividend 

distribution. 

The Company and its subsidiary’s reserve has already reached 10% of the authorized share capital. 

Under the provision of the Civil and Commercial Code, the subsidiaries is required to set aside as legal reserve 

at least 5% of earnings at each dividend declaration until the reserve reaches 10% of the registered capital. This legal 

reserve is not available for dividend distribution. 

The two subsidiaries’ reserves have already reached 10% of the authorized share capital. 

22. EARNINGS PER SHARE 

Basic earnings per share is calculated by dividing the net income attributed to the shareholder’s equity of the parent 

company for the years by the weighted average number of ordinary shares which are issued and paid-up during the 

years. 

Consolidated 

Separate 

For the years ended December 31 For the years ended December 31 

2010 2009 2010 2009 

Net income attributed to the shareholder’s 

equity of the parent company (In Baht) 1,175,055,765 994,361,993 993,720,833 779,985,728 

Weighted average number of ordinary 

shares (Shares) 408,000,000 408,000,000 408,000,000 408,000,000 

Basic earnings per share (Baht per share) 2.88 2.44 2.44 1.91

112 

23. CASH DIVIDEND 

Announce to pay dividend Dividend paid 

Description Date Meeting Date Payment Per share Amount Amount 

of dividend (Baht) (Million) (Million) 

At the board of directors 

meeting the board of 

directors passed the 

resolution to approve the 

payment of dividend : 

The year 2010, final On January 25 , 2011* On May 4 , 2011 0.58 236.64 - 

Total - 

The third quarter 2010 On October 26 , 2010 On November 22, 2010 0.70 285.60 285.60 

The second quarter 2010 On July 27, 2010 On August 20, 2010 0.80 326.40 326.40 

The first quarter 2010 On April 27, 2010 On May 27, 2010 0.80 326.40 326.40 

The year 2009, final On January 26, 2010** On May 6, 2010 0.55 224.40 224.40 

Total 1,162.80 

The third quarter 2009 On October 27, 2009 On November 26, 2009 0.50 204.00 204.00 

The second quarter 2009 On July 28, 2009 On August 27, 2009 0.48 195.84 195.84 

The first quarter 2009 On April 28, 2009 On May 27, 2009 0.55 224.40 224.40 

The year 2008, final On January 27, 2009 On May 7, 2009 0.28 114.24 114.24 

Total 738.48 

* The Board of Directors will propose the dividend payment to the 2011 ordinary shareholders’ meeting on April 

26, 2011. 

** At the shareholders’ meeting for 2010, held on April 27, 2010, the shareholders approved for such dividend 

payment. 

24. TRANSACTIONS WITH RELATED PARTIES 

The financial statements include transactions with related parties and the financial statements reflect the effects 

of these transactions on the basis determined by the companies concerned. 

Company 

Relationship 

- Tile Top Industry Public. Co., Ltd. Subsidiaries Company 

- Pick and Pay Co., Ltd. Subsidiaries Company 

- Muangthong Ceramic Co., Ltd. Subsidiaries Company 

- World Wide Ceramic Co., Ltd. Subsidiaries Company 

- Acapulco Co., Ltd. A related parties of the Company 

- Mr. Roongroj Saengsastra Director of the Company and Subsidiaries 

- Mr. Monrak Saengsastra Director in Subsidiaries Company 

- Mr. Marut Saengsastra Director in Subsidiaries Company

113 

24.1 Transactions with related parties consist mainly of: 

In Baht 

Consolidated 

Separate 


31, 2010 31, 2009 31, 2010 31, 2009 

Trade accounts receivable and other - subsidiaries 

- Pick and Pay Co., Ltd. - - 446,144,377 452,603,434 

- Muangthong Ceramic Co., Ltd. - - 187,827,934 234,098,191 


858,679,563 911,571,236 

Trade accounts payable and other - subsidiaries 

- Tile Top Industry Public Co., Ltd - - 521,570,628 398,103,801 


- Muangthong Ceramic Co., Ltd. - - - 7,000 

- World Wide Ceramic Co., Ltd. - - - 6,000 

521,648,053 398,103,801 

In Baht 

Consolidated Separate 

For the years ended For the years ended 

December 31, December 31, 

Price Policy 2010 2009 2010 2009 

Sales - finished goods 

At the parent company 

- Pick and Pay Co., Ltd. concerned, market competicable - - 2,365,164,395 1,956,784,975 

- Muangthong Ceramic Co., Ltd. but more than cost - - 1,507,391,960 1,422,217,339 


4,698,961,561 4,127,425,501 

Sales - raw materials and supplies At cost 

- Tile Top Industry Public Co., Ltd - - 4,606,261 4,414,841 


5,330,530 5,412,123 

Rental charges and branches 

- Tile Top Industry Public Co., Ltd 30,000 Baht per month - - 360,000 360,000 

- Pick and Pay Co., Ltd. 10,000 Baht per month - - 120,000 120,000 

100,000 Baht per month 1,100,000 - 

- Muangthong Ceramic Co., Ltd. 12,000 Baht per month - - 144,000 144,000 

- World Wide Ceramic Co., Ltd. 3,000 Baht per month - - 36,000 36,000 

1,760,000 660,000

114 

In Baht 

Consolidated Separate 

For the years ended For the years ended 

December 31, December 31, 

Price Policy 2010 2009 2010 2009 

Management income 

- Tile Top Industry Public Co., Ltd 1,000,000 Baht per month - - 12,000,000 12,000,000 

- Pick and Pay Co., Ltd. 360,000 Baht per branch for 

year 2010 and 100,000 Baht 

per branch for year 2009 - - 28,230,000 7,456,989 

- Muangthong Ceramic Co., Ltd. 360,000 Baht per branch for 



- World Wide Ceramic Co., Ltd. 360,000 Baht per branch for 



70,559,999 28,456,989 

Pur Purchases - finished goods 

- Tile Top Industry Public Co., Ltd At the parent company 

concerned, market 

competicable but more 

than cost - - 2,085,438,341 1,774,668,457 

- Pick and Pay Co., Ltd At cost - - 186,111 95,890 

- Muangthong Ceramic Co., Ltd. At cost - - 4,445,806 61,802 

- World Wide Ceramic Co., Ltd. At cost - - 47,944 32,715 

2,090,118,202 1,774,858,864 

Purchases - raw materials and supplies 

- Tile Top Industry Public Co., Ltd At cost - - 11,856,670 10,679,716 

Management fee 

- Tile Top Industry Public Co., Ltd 300,000 Baht per month - - 3,600,000 3,600,000 

Rental land expenses 

- Mr. Roongroj Saengsastra 1,000,000 Baht per branch 1,000,000 1,000,000 - - 

- Mr. Monrak Saengsastra and 

- Mr. Marut Saengsastra 1,000,000 Baht per branch 1,000,000 1,000,000 

- Acapulco Co., Ltd. 81,250 Baht per month 975,000 975,000 - - 

24.2 Guarantee 

The Company had placed a guarantee on its subsidiary’s credit facilities with a local bank approximately 

Baht 795 million. The Company did not charge for guarantee fee. 

As at December 31,2010 and 2009, The subsidiary had guaranteed on the Company’s credit facilities with 

a local bank of Baht 400 million and 1,220 million, respectively. The subsidiary do not charge for guarantee fee.

115 

25. GEOGRAPHICAL SEGMENT FINANCIAL INFORMATION 

Geographical segment financial information of the Company and subsidiaries for the years ended December 

31, 2010 and 2009 are as follows : 

In Baht 

For the years ended December 31, 

Domestic Foreign Total 

2010 2009 2010 2009 2010 2009 

Net sales 6,327,626 5,730,766 185,313 153,099 6,512,939 5,883,865 

Cost of sales (3,494,471) (3,272,541) (135,273) (111,451) (3,629,744) (3,383,992) 

Gross margin on sales 2,833,155 2,458,225 50,040 41,648 2,883,195 2,499,873 

As at December 31 

Fixed assets - net 2,075,051 1,980,879 

Others 1,639,936 1,651,430 

Total assets 3,714,987 3,632,309 

Geographical segment financial information of Separated for the years ended December 31, 2010 and 2009 are 

as follows: 

In Baht 

For the years ended December 31, 

Domestic Foreign Total 

2010 2009 2010 2009 2010 2009 

Net Sales 5,719,282 5,174,856 185,313 153,099 5,904,595 5,327,955 

Cost of sales (3,698,853) (3,452,404) (135,273) (111,451) (3,834,126) (3,563,855) 

Gross margin on sales 2,020,429 1,722,452 50,040 41,648 2,070,469 1,764,100 

As at December 31, 

Fixed assets - net 873,698 820,406 

Others 1,693,095 1,761,867 

Total assets 2,566,793 2,582,273 

Gross margin on sales of each geographical segment is derived from deducting the sales amounts by the cost 

of sales which is calculated by averaging the total gross margin on sales of the Company and its subsidiaries. 

Other assets are mainly consisted of cash on hand and in banks, accounts and notes receivable - trade, 

inventories,investment in subsidiaries and others.

116 

26. EXPENSES BY NATURE 

Significant expenses by nature are as follow : 

In Baht 

Consolidated 

Separate 

For the years ended December 31,For the years ended December 31, 

2010 2009 2010 2009 

Changes in inventories of finished goods 

and work in process (105,668,717) 194,084,661 3,256,822 228,845,506 

Raw materials and consumables used 2,447,404,418 1,621,254,068 859,025,892 783,945,742 

Employee benefit cost 521,060,097 485,095,398 179,192,108 167,077,161 

Depreciation and amortization 339,362,793 331,921,410 151,227,726 152,458,161 

Allowance for obsolete products 9,665,377 49,005,493 9,859,390 48,227,941 

The employee benefit cost was consisted of salary, bonus, welfare, social security and contribution to 

provident fund. 

27. MANAGEMENT BENEFIT EXPENSES 

In Baht 

Consolidated 

Separate 

For the years ended December 31,For the years ended December 31, 

2010 2009 2010 2009 

Management benefit expenses 37,403,124 32,365,780 29,045,824 24,839,540 

Management benefit expenses represents the benefits paid to the Company’s management such as salaries 

and related benefit including the benefit paid by other means. The Company’s management is the persons who are 

defined under the Securities and Exchange Act. 

28. CORPORATE INCOME TAX 

In 2010, the Company had written-off bad debt of account receivable which was recorded allowance for 

doubtful account in prior year amount of Baht 47.51 million (Note 8) due to the Company received the report of seize 

asset from the legal Execution Department, there has no any asset of account receivable to execute, and included 

expenses in tax calculation.

117 

29. COMMITMENTS AND CONTINGENT LIABILITIES 

As at December 31, 2010, the Company and its subsidiaries: 

29.1 Had contingent liabilities from letters of guarantee issued by a bank on behalf of the Company of approximately 

Baht 16.75 million for the Company and amounting to Baht 41.25 million for the subsidiary. 

29.2 Had commitment to pay under the agreement for construction of building in Baht 17.64 million for the 

subsidiaries (excluding Vat). 

29.3 Had commitments under operating lease agreements. 

The Company and its subsidiaries had commitments to pay for the lease payments under the vehicle and 

land lease agreements as follows: 

Million Baht 

Vehicle lease agreement 

Within 

1 year 52.34 

2 - 5 years 70.78 

Land lease agreement 

Within 

1 year 44.28 

2 - 5 years 106.99 

after 5 years 37.70 

29.4 The Company and its subsidiary’s has credit line do not use financial institutions amount of Baht 1,813.25 

million and Baht 2,583.85 million, respectively. 

30. FINANCIAL INSTRUMENTS 

30.1 Accounting policies 

Details of the significant accounting policies are disclosed in Note 4. 

30.2 Financial risk management 

The Company and its subsidiaries manage their financial risk exposure on financial assets and financial 

liabilities in normal business by the internal management and control system and the Company and its 

subsidiaries do not held or issue any derivative instruments. 

30.3 Credit risk 

The Company and its subsidiaries were exposed to credit risk primarily with respect to trade and notes 

accounts receivable. The Company has a prudent credit policy and maintains a well - diversified customer 

base. The subsidiary sell its product to Separated. The maximum credit risk exposure is equal to the book 

value of accounts receivable in the balance sheet.

118 

30.4 Interest rate risk 

Interest rate risk arises from the potential change in interest rate that will have an adverse effect on the 

Company and its subsidiaries in the current reporting period and in future periods. The Company and its 

subsidiaries do not expect to incur material incremental effect on its interest expense. 

30.5 Foreign currency risk 

The Company and its subsidiaries’ exposure to foreign currency risk relates to their foreign accounts payable 

in US dollars and EURO. However, the Company and its subsidiaries do not expect to incur material effect 

from the exchange rate. 

The Company and its subsidiaries have foreign currency assets and liabilities as follows : 

Consolidated 

Separate 


31, 2010 31, 2009 31, 2010 31, 2009 

Assets - USD 259,027 165,908 259,027 165,908 

Liabilities -USD 82,367 16,264 82,367 16,264 

Liabilities - EURO 354,766 235,468 232,205 167,145 

30.6 Fair Value 

The fair value of significant financial assets and financial liabilities does not differ from their carrying value 

except for the fair value of investment in subsidiaries, liabilities under financial lease agreements and provident 

fund which cannot be properly calculated, accordingly, no disclosure is made. 

31. CAPITAL MANAGEMENT 

The primary objectives of the Company’s and its subsidiaries’ capital management are to maintain their abilities to 

continue as a going concern and to maintain an appropriate capital structure. 

As at December 31, 2010 and 2009, debt to equity ratio in the consolidated financial statements is 0.36: 1 and 

0.34: 1, respectively (the separate financial statements: debt to equity ratio is 0.76 : 1 and 0.58 : 1, respectively). 

32. RECLASSIFYING FOR PRESENTATION OF FINANCIAL STATEMENT 

Certain amounts in the financial statements for the years ended December 31, 2009 have been reclassified to 

conform to the current years classification but with no effect to previously reported net income or shareholders’ 

equity. 

33. AUTHORIZATION FOR ISSUE OF FINANCIAL STATEMENTS 

These financial statements have been approved by the Company’s board of director on February 22, 2011.

www.dynastyceramic.com

บริษัท ไดนาสตี้เซรามิค จำกัด (มหาชน) - Dynasty TileTop

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