The Audit Committee

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The Audit Committee ANNUAL REPORT Bang Khla Mueang Bangpagong River CHACHOENGSAO 20Ban Pho 11 Bang Sao Thong Pan Tong Panat Nikom Mueang Reservoir Bang Phra Ban Bueng Reservoir Nong Kho CHON BURI Ko Sichang Siracha Nong Yai Reservoir Reservoir Khlong Yai Pra Sae Reservoir Nong Pra Lai Bang Lamung Reservoir Dok Krai Pluak Daeng Wang Chan Ban Khai RAYONG Sattahip Ban Chang Mueang Raw Water Pipe Line (EW) Raw Water Pipe Line (RID) Existing Pipe Network Pump Station Main Water Resource Existing Pipe Network Constructing Pipe Network Head Tank Reserve Water Resource Constructing Pipe Network Emergency Pond Regulating Well/Recieving Well “ SUSTAINABLE GROWTH OF BROADER VISION ” THE FIRM OF WATERPRODUCTIVE SOLUTION DEVELOPMENT Water is infinitely invaluable because it is a natural resource which provides countless benefits to all lives of living creatures on Earth. Awareness about resource management is critical in fulfillment of the needs of all sides. This is especially important at present, since there has been an increased demand for water for various activities, spanning industries, agriculture, residentail consumptiom, and tourism. Hence, efficient water resource management has an important role in driving and developing the economy, society, and environment in a sustainable manner. Khlong Khuean Bang Khla Mueang Bangpagong River CHACHOENGSAO Ban Pho Bang Sao Thong The process of water distribution Head Tank Pumping station Factory Pan Tong Industrial Estate Panat Nikom Mueang Consumption Reservoir Bang Phra Ban Bueng Reservoir Nong Kho CHON BURI Ko Sichang Siracha Nong Yai Reservoir Reservoir Khlong Yai Pra Sae Reservoir Nong Pra Lai Bang Lamung Reservoir Dok Krai Pluak Daeng Wang Chan Ban Khai RAYONG Sattahip Ban Chang Mueang Raw Water Pipe Line (EW) Raw Water Pipe Line (RID) Existing Pipe Network Pump Station Main Water Resource Existing Pipe Network Constructing Pipe Network Head Tank Reserve Water Resource Constructing Pipe Network Emergency Pond Regulating Well/Recieving Well PROACTIVEDETERMINATION TO BE SUCCESSFUL CORPORATE In addition to the success in water management, we are also committed to successful financial results to develop and encourage growth for the corporation and its employees. This vision extends to build confidence for investors who can join in our endeavors in driving the corporation to become experts in water resource management in Eastern Thailand as well as further projects in the future. PROMOTINGEQUITY TOWARDS HIGH INTEGRITY The corporation consists of employees and management committed to the principles of working with honesty and integrity to establish confidence for stakeholders in our finances and investment. We attach importance to good corporate governance and aim to create benefits for shareholders while providing equity of treatment to all stakeholders. We also hold activities to promote good corporate governance for our subsidiaries, to motivate our employees and management of all levels to uphold the principles of transparency, honesty, accountability, and competitiveness in their careers. ENDLESSSPIRIT OF TEAMWORK Since we believe that human resources are the root of the corporation’s sustainable and stable growth, East Water’s business conduct is committed to the development of our employees coupled. We have a strategy to promote learning in expertise and holistic knowledge about water resources. We encourage innovation in application of business and actively promote innovation beyond the corporation. We regularly support activities to enhance the relationship between employees of all levels in order to create the exchange of ideas, teamwork, and unity. 10TO DOTHINGS TO SAVE WATER • Would it be better to use the • Use of the Flush • Laundry shower faucet? Each flush uses 8-12 liters of water. To save Allowing water to run continuously during laundry Using the bath tub wastes 110-200 liters of water, separate installation of urinals and toilets wastes water at a rate of 9 liters per minute water each time, compared to 30 liters is recommended. when using a shower faucet. • Frequent Inspection of Faucets • Doing the Dishes Water that leaks from the faucet results in • Would it be better to use cups? Clearing leftovers and scraping off dirty residues unnecessary waste. If repairs are not made, Did you know? Using a cup to hold water while before doing the dishes is better than directly the leaked water should be saved in a container brushing one’s teeth requires only 0.5 to 1 liter washing it by letting water flow from the faucet, for further use. of water, but letting water continuously flow at a rate of 9 liters per minute. without a cup would waste 20-30 liters of water. • Sprinklers Can Help • Cleaning Vegetable, Fruits, and Using sprinklers to water plants instead of a • Shaving Various Tools hose can save water. Using a towel to wipe during a shave saves Using a container to hold the required amount water and paper. Cleaning can be done after of water is better than allowing the water to run • Water Saved from Laundry Can the shave. freely during the cleaning process. be Reused Used water froming laundry con be reused for water plants, which is a way of saving water. Contents Highlights of the year........................................................................................................11 Vision Mission Strategy......................................................................................................13 Message from Chairman..................................................................................................14 Board of Directors and Advisors. ..................................................................................16 Corporate Executives.........................................................................................................22 Organization Structure......................................................................................................27 Industry and Competition................................................................................................28 Business Profile and Subsidiary Shareholding Ratio...............................................30 Risk Factors.............................................................................................................................32 Management Discussion and Analysis........................................................................35 Good Corporate Governance.......................................................................................40 Definition of Independent Directors..............................................................................51 Sufficiency Assessment of Internal Control System................................................52 Corporate Governance Report of the Audit Committee.....................................54 Report of the Corporate Governance and Nominating Committee..............57 Report of the Board of Directors’ Responsibility toward Financial Statement Report..............................................................................58 Auditor’s Report...................................................................................................................59 Balance Sheets.....................................................................................................................60 Notes to Consolidated and Company Financial Statements.............................68 Related Parties Transactions.........................................................................................123 The Remuneration of Auditors......................................................................................124 General Information.........................................................................................................125 The List of Top 10 Major Shareholders....................................................................127 Dividend Payment Policy ..............................................................................................128 Highlights of the year Water distribution capacity and raw water consumption volume during 2004-2011 Unit : Million Cubic Meters/Year 2004 2005 2006 2007 2008 2009 2010 2011* Total water consumption 177.65 190.10 199.36 211.20 227.69 221.27 244.88 261.51 Water distribution capacity 343 423 423 473 473 473 473 473 Water distribution capacity to water consumption ratio (Unit : Times) 1.93 2.23 2.12 2.24 2.08 2.28 1.93 1.81 *The raw water pipeline construction project of Nong Pla Lai - Map Ta Phut, line 3, which under construction and scheduled for completion in 2012 in order to increase of water distribution capacity of 105.00 million cubic metres per year. Financial Ratio Consolidated Financial Statement Company Financial Statement Description 2007 2008 2009 2010* 2011 2007 2008 2009 2010* 2011 Book value (per share) 3.50 3.59 3.18 3.98 4.17 3.55 3.47 3.63 3.74 3.91 Net profit (per share) 0.33 0.34 0.49 0.55 0.61 0.33 0.31 0.44 0.50 0.55 Dividend (per share)** 0.25 0.25 0.35 0.38 0.12 0.25 0.25 0.35 0.38 0.12 Net profit to total income (%) 18.13 23.45 28.04 27.87 30.45 22.98 25.30 30.92 30.20 32.75 Return on shareholders equity (ROE) (time) 9.36 10.70 12.96 13.41 14.88 9.58 10.09 12.96 12.83 14.25 Return on assets (ROA) (time) 4.46 5.97 8.73 9.46 9.76 4.86 5.87 8.63 9.66 9.84 Debt to equity ratios (D/E) (time) 0.49 1,008 0.97 0.35 0.41 0.49 1.09 0.56 0.44 867 0.55 0.52 441 571 808 3,310 Remarks * Excluding the revenue,2,430 cost, profit and2,437 tax effects 2,878related to the3,107 project construction of pipeline connecting Prasae reservoir
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