Financial Report AIS

Advanced Info Service Public Company Limited
and its Subsidiaries

Financial statements for the year ended
31 December 2014
and
Independent Auditors Report
Independent Auditors Report

To the Shareholders of Advanced Info Service Public Company Limited
I have audited the accompanying consolidated and separate financial statements of Advanced Info Service
Public Company Limited and its subsidiaries (the Group), and of Advanced Info Service Public Company
Limited (the Company), respectively, which comprise the consolidated and separate statements of
financial position as at 31 December 2014, the consolidated and separate statements of income,
comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising a
summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Consolidated and Separate Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated and separate
financial statements in accordance with Thai Financial Reporting Standards, and for such internal control as
management determines is necessary to enable the preparation of consolidated and separate financial
statements that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
My responsibility is to express an opinion on these consolidated and separate financial statements based on
my audit. I conducted my audit in accordance with Thai Standards on Auditing. Those standards require
that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the consolidated and separate financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entitys preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal
control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit
opinion.
Opinion
In my opinion, the consolidated and separate financial statements present fairly, in all material respects, the
financial position of the Group and the Company, respectively, as at 31 December 2014 and their financial
performance and cash flows for the year then ended in accordance with Thai Financial Reporting Standards.
(Charoen Phosamritlert)
Certified Public Accountant
Registration No. 4068
KPMG Phoomchai Audit Ltd.
Bangkok
5 February 2015
Advanced Info Service Public Company Limited and its Subsidiaries

Statement of financial position
Assets
Note
Consolidated
Separate
financial statements
31 December
31 December
2014
2013
2014
2013
(in Baht)
Current assets
Cash and cash equivalents
14,258,066,402
11,473,120,876
1,679,292,348
3,964,630,780
Specifically-designated bank deposits
3,709,327,905
3,781,141,127
Current investments
1,542,448,983
1,576,941,592
Trade accounts receivable
5,9
10,415,388,789
10,264,184,371
9,944,049,122
11,529,604,208
Other receivables
5,10
5,900,650,118
4,851,425,229
1,987,196,143
1,205,237,858
Short-term loans to related parties
95,000,000
35,589,760,000
35,386,900,000
Inventories
11
2,519,497,229
2,864,932,209
52,163,408
80,021,810
686,131,869
153,136,150
140,976,544
39,126,511,295
34,964,881,554
49,393,437,565
52,166,394,656
7,912,143,008
Other current assets

Total current assets
Non-current assets
Investments in associate
12
Investments in subsidiaries
13
7,912,145,488
Other long-term investments
58,399,310
104,360,750
46,999,310
93,160,750
Property, plant and equipment
14
60,702,586,423
35,922,236,163
1,103,188,064
1,580,204,790
3(b),15
Intangible assets under

8,738,038,803
20,499,802,732
8,738,038,803
20,491,416,123
Goodwill
the Agreements for operations
16
34,930,692
34,930,692
Spectrum license
17
12,624,410,361
13,600,648,306
Other intangible assets
18
2,504,683,294
2,178,034,730
112,532,688
159,337,759
Swap and forward contracts receivable
37
568,880,941
653,397,782
568,880,941
653,397,782
Deferred tax assets
19
1,441,855,941
3,557,332,641
667,900,342
3,216,666,321
Other non-current assets
Total non-current assets

Total assets
550,265,957
510,084,969
999,138,724
671,294,457
87,224,051,722
77,060,828,765
20,148,824,360
34,777,620,990
126,350,563,017
112,025,710,319
69,542,261,925
86,944,015,646
The accompanying notes are an integral part of these financial statements.

3

Statement of financial position
Liabilities and equity
Note
Consolidated
Separate
31 December
31 December
2014
2013
2014
2013
(in Baht)
Current liabilities
Short-term loans from financial institutions
4,000,000,000
4,000,000,000
Trade accounts payable
5,21
20
11,903,114,252
11,718,205,683
1,285,824,610
1,621,377,526
Other payables
5,22
11,188,941,077
9,536,172,211
2,824,131,920
4,925,418,639
Short-term loan from related parties
4,400,000,000
Current portion of long-term borrowings
20
2,571,630,615
5,303,408,757
2,560,792,322
5,297,776,745
Current portion of spectrum license payable
17
3,656,250,000
3,656,250,000
Accrued revenue sharing expenses
5,130,156,868
3,534,750,009
4,989,582,697
3,394,175,838
Unearned income - mobile phone service
2,183,175,400
1,599,664,604
628,770,725
1,134,085,114
Advanced receipts from customers
3,709,327,905
2,985,927,727
Income tax payable
2,195,545,817
2,816,611,446
1,923,263,743
367,976,407
340,245,305
330,908,064
304,012,947
42,906,118,341
45,491,235,742
12,620,010,338
27,000,110,552
Other current liabilities

Total current liabilities
Non-current liabilities
Long-term borrowings
20
34,478,291,366
15,354,770,702
12,869,374,320
15,339,346,797
Employee benefit obligations
23
1,499,743,034
1,361,376,034
406,012,895
767,853,695
Spectrum license payable
17
3,656,250,000
601,655,751
269,491,753
33,268,900
55,861,060
Total non-current liabilities
36,579,690,151
20,641,888,489
13,308,656,115
16,163,061,552
Total liabilities
79,485,808,492
66,133,124,231
25,928,666,453
43,163,172,104
Authorised share capital
4,997,459,800
4,997,459,800
4,997,459,800
4,997,459,800
Issued and paid-up share capital
2,973,095,330
2,973,095,330
2,973,095,330
2,973,095,330
22,372,276,085
22,372,276,085
22,372,276,085
22,372,276,085
Other non-current liabilities
Equity
Share capital
24
Additional paid-in capital

Premium on ordinary shares
24
Retained earnings
Appropriated
Legal reserve
25
Unappropriated
Other components of equity
500,000,000
500,000,000
500,000,000
500,000,000
20,710,294,423
19,729,332,548
17,742,315,443
17,928,485,775
194,732,371
173,403,605
25,908,614
6,986,352
46,750,398,209
45,748,107,568
43,613,595,472
43,780,843,542
114,356,316
144,478,520
46,864,754,525
45,892,586,088
43,613,595,472
43,780,843,542
126,350,563,017
112,025,710,319
69,542,261,925
86,944,015,646
26
Equity attributable to owners

of the Company
Non-controlling interests
Total equity
Total liabilities and equity

4

Statement of income
Note
Consolidated
Separate
For the year ended 31 December
2014
2013
2014
2013
(in Baht)
Revenues
Revenues from rendering of services and
equipment rentals
Revenue from sale of goods
125,396,923,290
127,816,101,491
62,030,056,662
106,024,435,809
23,331,862,141
18,995,274,129
8,379,611
516,324,259
Construction income from the Agreements

for operations
3(b)
600,261,701
3,766,442,977
600,261,701
3,639,599,320
149,329,047,132
150,577,818,597
62,638,697,974
110,180,359,388
32
(45,206,190,813)
(43,136,095,291)
(27,065,167,097)
(37,444,665,645)
(14,593,801,827)
(24,273,347,402)
(14,593,801,827)
(22,864,248,043)
(23,148,015,893)
(17,760,269,921)
(8,295,132)
(515,767,375)
Total revenues
Costs
Cost of rendering of services and
equipment rentals
Revenue sharing expense
Cost of sale of goods
Construction cost from the Agreements
(600,261,701)
(3,766,442,977)
(600,261,701)
(3,639,599,320)
Total costs
for operations
3(b)
(83,548,270,234)
(88,936,155,591)
(42,267,525,757)
(64,464,280,383)
Gross profit
65,780,776,898
61,641,663,006
20,371,172,217
45,716,079,005
Selling and administrative expenses

Selling expenses
32
(6,219,705,961)
(4,331,356,643)
(647,636,036)
Administrative expenses
32
(12,640,674,559)
(10,545,060,955)
(4,727,020,237)
(8,735,287,401)
(18,860,380,520)
(14,876,417,598)
(5,374,656,273)
(10,554,465,389)
Total selling and administrative expenses
(1,819,177,988)
Profit from sales, services and

equipment rentals
46,920,396,378
46,765,245,408
14,996,515,944
35,161,613,616
5,13,29
370,107,076
548,204,710
24,132,238,049
9,544,154,772
Other operating income
30
329,786,099
322,552,869
857,938,259
627,814,405
Share of loss of associate
12
(3,625,000)
Impairment loss of assets
13,16
(11,972,822)
Investment income
Net foreign exchange gain (loss)

Management benefit expenses
Finance costs
188,934,345
5
16,760,622
57,558,526
(183,866,171)
(163,084,715)
(183,076,171)
(162,774,715)
5,33
(1,526,869,915)
(1,002,278,159)
(902,333,098)
(1,017,269,330)
46,082,889,990
46,237,638,162
38,918,043,605
34
(10,079,716,669)
(10,007,635,247)
(4,052,010,256)
(7,347,112,959)
36,003,173,321
36,230,002,915
34,866,033,349
36,647,984,315
36,033,165,556
36,274,127,624
34,866,033,349
36,647,984,315
Profit before income tax expense

Income tax expense
(233,001,951)
(216,000,000)
Profit for the year
43,995,097,274
Profit attributable to:

Owners of the Company
(29,992,235)
Profit for the year
(44,124,709)
36,003,173,321
36,230,002,915
34,866,033,349
36,647,984,315
Basic earnings per share
12.12
12.20
11.73
12.33
Diluted earning per share
12.12
12.20
11.73
12.33
Earnings per share
35

5

Statement of comprehensive income
Note
Consolidated
Separate
2014
2013
2014
2013
(in Baht)
Profit for the year
36,003,173,321
36,230,002,915
34,866,033,349
36,647,984,315
2,428,205
2,863,186
Other comprehensive income

Net change in fair value of available-for-sale
investments
Other comprehensive income for the year,
net of income tax
Total comprehensive income for the year
2,428,205
2,863,186
36,005,601,526
36,232,866,101
34,866,033,349
36,647,984,315
36,035,572,060
36,276,953,775
34,866,033,349
36,647,984,315
Total comprehensive income attributable to:

Owners of the Company
(29,970,534)
36,005,601,526

6
(44,087,674)
36,232,866,101
34,866,033,349
36,647,984,315

Statement of changes in equity
Consolidated financial statements
Retained earnings
Issued and
Fair value
paid-up
Note
share
Share
Legal
capital
premium
reserve
Unappropriated
Total equity
Reserve for
Gain on
changes in
Total other
attributable to
Non-
share-based
dilution of
available-for-sale
components
owners of
controlling
Total
payment
investment
investments
of equity
the Company
interests
equity
188,692,640
43,541,851,303
6,986,352
(in Baht)
Year ended 31 December 2013
Balance at 1 January 2013
2,973,095,330
22,372,276,085
500,000,000
17,344,196,146
161,186,663
2,404,439
163,591,102
43,353,158,663
6,986,352
6,986,352
6,986,352
(33,888,991,222)
(33,888,991,222)
6,986,352
6,986,352
Profit
36,274,127,624
36,274,127,624
2,826,151
2,826,151
2,826,151
36,274,127,624
2,826,151
2,826,151
36,276,953,775
(44,087,674)
36,232,866,101
2,973,095,330
22,372,276,085
500,000,000
19,729,332,548
6,986,352
161,186,663
5,230,590
173,403,605
45,748,107,568
144,478,520
45,892,586,088
Transactions with owners, recorded directly in equity

Share-base payment transaction
26
Cash returned from liquidation of subsidiaries

Dividends to owners of the Company
5,36
Total transactions with owners, recorded directly in equity
(610)
(610)
(33,888,991,222)
(125,836)
(33,889,117,058)
(33,882,004,870)
(126,446)
(33,882,131,316)
Comprehensive income for the year
Balance at 31 December 2013

7
(44,124,709)
37,035
36,230,002,915
2,863,186

Retained earnings
Issued and
Fair value
paid-up
Note
share
Share
Legal
capital
premium
reserve
Unappropriated
Total equity
Reserve for
Gain on
changes in
Total other
attributable to
Non-
share-based
dilution of
available-for-sale
components
owners of
controlling
Total
payment
investment
investments
of equity
the Company
interests
equity
45,748,107,568
144,478,520
(in Baht)
2,973,095,330
22,372,276,085
500,000,000
19,729,332,548
6,986,352
161,186,663
5,230,590
173,403,605
26
5,36
(35,052,203,681)
(35,052,203,681)
Acquisition of non-controlling interests without a change in control
Total changes in ownership interests in subsidiaries
(35,052,203,681)
Profit
2,973,095,330
22,372,276,085
45,892,586,088
18,922,262
18,922,262
(35,052,203,681)
(149,190)
(35,052,352,871)
18,922,262
18,922,262
(35,033,281,419)
(149,190)
(35,033,430,609)
(2,480)
(2,480)
(2,480)
(2,480)
18,922,262
18,922,262
(151,670)
(35,033,433,089)
36,033,165,556
36,033,165,556
2,406,504
2,406,504
2,406,504
36,033,165,556
2,406,504
2,406,504
36,035,572,060
(29,970,534)
36,005,601,526
500,000,000
20,710,294,423
25,908,614
161,186,663
7,637,094
194,732,371
46,750,398,209
114,356,316
46,864,754,525

Contributions by and distributions to owner of the Company
Total contributions by and distributions to owner of the Company
18,922,262
18,922,262
Changes in ownership interests in subsidiaries
(35,033,281,419)

8
(29,992,235)
21,701
36,003,173,321
2,428,205

Separate financial statements
Other components
Retained earnings
of equity
Issued and
Note
Reserve for
paid-up
Share
Legal
share capital
premium
reserve
share-based
payment
Unappropriated
Total equity
(in Baht)
2,973,095,330
22,372,276,085
500,000,000
15,169,492,682
6,986,352
41,014,864,097
26
5,36
(33,888,991,222)
(33,888,991,222)
(33,888,991,222)
6,986,352
(33,882,004,870)
Profit
36,647,984,315
36,647,984,315
36,647,984,315
36,647,984,315
2,973,095,330
22,372,276,085
500,000,000
17,928,485,775
6,986,352
43,780,843,542

6,986,352

9

Other components
Retained earnings
of equity
Issued and
Note
Reserve for
paid-up
Share
Legal
share capital
premium
reserve
share-based
payment
Unappropriated
Total equity
(in Baht)
2,973,095,330
22,372,276,085
500,000,000
17,928,485,775
6,986,352
18,922,262
43,780,843,542
26
5,36
(35,052,203,681)
(35,052,203,681)
(35,052,203,681)
18,922,262
(35,033,281,419)
Profit
34,866,033,349
34,866,033,349
34,866,033,349
34,866,033,349
2,973,095,330
22,372,276,085
500,000,000
17,742,315,443
25,908,614
43,613,595,472

18,922,262

10

Statement of cash flows
Note
Consolidated
Separate
2014
2013
2014
2013
(in Baht)
Cash flows from operating activities
Profit for the year
36,003,173,321
36,230,002,915
34,866,033,349
36,647,984,315
Adjustments for
Depreciation
Amortisation of intangible assets
6,224,630,590
3,037,080,038
496,367,600
607,516,902
12,697,121,500
13,504,064,271
11,354,678,791
11,111,915,640
Impairment loss of assets
13,14,15
11,972,822
Investment income
5,13,29
(370,107,076)
Finance costs
(548,204,710)
(24,132,238,049)
216,000,000
(9,544,154,772)
5,33
1,526,869,915
1,002,278,159
902,333,098
1,017,269,330
Doubtful accounts and bad debts expense
1,240,096,982
786,761,009
37,392,229
359,749,826
Share-based payment transaction
26
18,922,262
6,986,352
18,922,262
6,986,352
Allowance for obsolete, decline in value

and write-off inventories
Loss on disposals and write-off of assets
Unrealised (gain) loss on exchange
60,996,823
72,978,456
2,341,242
14,139,273
864,996,826
562,133,543
834,544,090
556,336,656
(37,711,641)
(20,246,438)
19,719,184
(3,342,575)
Share of loss of associate
12
3,625,000
Income tax expense
34
10,079,716,669
10,007,635,247
4,052,010,256
7,347,112,959
68,381,734,818
64,658,372,705
28,394,673,227
48,320,610,043
Cash provided by operation before changes in

operating assets and liabilities
Changes in operating assets and liabilities

Other receivables
Inventories
Swap and forward contracts (receivable) payable
71,813,222
(1,402,917,732)
(293,262,059)
284,438,157
(83,289,728)
(2,968,007,766)
1,542,974,551
(2,311,658,520)
(989,977,626)
180,562,435
45,227,749
(1,511,529,346)
25,517,160
177,101,062
23,791,727
(392,022,582)
(74,169,116)
(24,199,251)
(8,053,509)
(24,756,405)
(8,380,164)
(327,844,267)
Other non-current assets
(40,180,987)
880,463,011
474,589,788
121,040,262
(8,054,636)
(241,377,526)
(1,596,514,056)
Other payables
1,530,805,592
2,135,419,423
(2,048,496,459)
Accrued revenue sharing expenses
1,595,406,859
(1,319,943,269)
1,595,406,859
583,510,796
(99,680,385)
Advanced receipts from customers
723,400,178
189,893,206
190,894,611
66,508,915
190,892,751
137,501,526
84,478,109
91,621,954
(363,647,909)
(69,153,440)
Cash generated from operating activities
72,174,362,742
60,553,375,082
28,781,007,816
Income tax paid
(9,353,964,849)
(9,224,648,109)
(4,124,735,021)
(6,878,534,223)
Net cash from operating activities
62,820,397,893
51,328,726,973
24,656,272,795
34,120,393,742
Other non-current liabilities

11
(505,314,389)
(2,174,492,655)
(512,347,632)
(791,705,677)
40,998,927,965

Statement of cash flows
Note
Consolidated
Separate
2014
2013
2014
2013
(in Baht)
Cash flows from investing activities
Interest received
372,803,497
558,886,730
1,015,193,520
1,316,239,515
Purchase of property, plant, equipment

and computer software
(31,731,849,208)
Sale of property and equipment
27,409,559
(23,013,592,746)
15,618,332
(281,229,371)
(513,837,398)
236,965,039
41,228,357
Purchase of intangible assets under

the Agreements for operations
Payment of spectrum license
(830,272,648)
(5,446,556,296)
(830,272,648)
(5,158,865,300)
(3,656,250,000)
(202,860,000)
(16,081,900,000)
Net increase in short-term loans

to subsidiaries and associate
(95,000,000)
Net (increase) decrease in other investments
82,882,254
(230,973,505)
46,161,440
Additional investment in subsidiaries

and associate
13
(3,625,000)
Dividend received
10,000,000
22,852,750,810
8,215,574,164
(35,823,901,546)
(28,116,617,485)
22,836,706,310
(13,316,560,662)
(1,229,812,193)
(959,556,015)
(918,388,407)
(995,143,957)
(124,185,478)
(20,384,781)
(11,680,623)
(14,392,840)
(35,511,069)
(29,829,880)
(25,549,603)
(23,876,887)
Net cash from (used in) investing activities
(2,480)
(1,135,000,000)
Cash flows from financing activities

Interest paid
Other finance costs paid
Finance lease principal payments
Net increase (decrease) in short-term loans
from financial institutions
(4,000,000,000)
4,000,000,000
(4,000,000,000)
4,000,000,000
4,400,000,000
Net increase (decrease) in short-term loans

-
(4,400,000,000)
Increase in long-term borrowings
from subsidiaries
21,600,400,000
7,812,480,000
Decrease in from long-term borrowings
(5,370,463,286)
(8,485,647,730)
(5,370,463,286)
(8,486,147,730)
(610)
7,812,480,000
Cash returned paid to non-controlling interests

from liquidation of subsidiaries
Acquisition of non-controllong interests
(2,480)
Dividend paid
(35,052,352,871)
(33,889,117,058)
(35,052,203,681)
(33,888,991,222)
Net cash used in financing activities
(24,211,927,377)
(31,572,056,074)
(49,778,285,600)
(27,196,072,636)
2,784,568,970
(8,359,946,586)
(2,285,306,495)
(6,392,239,556)
11,473,120,876
19,833,022,300
3,964,630,780
10,356,825,174
Net increase (decrease) in cash and

cash equivalents
Cash and cash equivalents at 1 January
Effect of exchange rate changes on
balances held in foreign currencies
Cash and cash equivalents at 31 December
376,556
45,162
14,258,066,402
11,473,120,876
1,679,292,348
(31,937)
3,964,630,780
45,162
10,781,561,867
11,528,914,889
128,246,485
585,507,328
Supplemental disclosures of cash flow information

Non-cash transactions
Outstanding debts arising from investment in property,
plant and equipment, intangible assets under
the Agreements for operations and spectrum license

12

Notes to the financial statements
Note
Contents
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
General information
Basis of preparation of the financial statements
Changes in accounting policies
Significant accounting policies
Related parties
Other investments
Other receivables
Inventories
Intangible assets under the Agreements for operations
Goodwill
License for operation right in spectrum of telecommunication
Deferred tax
Interest-bearing liabilities
Other payables
Share capital
Legal reserve
Segment information
Revenue of the Company under the NBTCs regulation
Investment income
Provident fund
Expenses by nature
Finance costs
Income tax expense
Earnings per share
Dividends
Financial instruments
Commitments with non-related parties
Contingent liabilities
Significant events, commercial disputes and litigation
Events after the reporting period
Thai Financial Reporting Standards (TFRS) not yet adopted
Reclassification of accounts
13

These notes form an integral part of the financial statements.
The financial statements issued for Thai statutory and regulatory reporting purposes are prepared in
the Thai language. These English language financial statements have been prepared from the Thai
language statutory financial statements, and were approved and authorised for issue by the Board of
Directors on 5 February 2015.
General information
Advanced Info Service Public Company Limited the Company, is incorporated in Thailand and has
its registered office at 414 Phaholyothin Road, Phayathai, Bangkok, Thailand.
The Company was listed on the Stock Exchange of Thailand in November 1991.
Intouch Holdings Public Company Limited is a major shareholder, holding 40.45% (2013: 40.45%) of
the share capital of the Company and is incorporated in Thailand. SingTel Strategic Investments Pte
Ltd. is a shareholder holding 23.32% (2013: 23.32%) of the share capital of the Company and is
incorporated in Singapore.
The major principal business operations of the Company and its subsidiaries (the Group) are
summarised as follows:
1) The operation of a 900-MHz CELLULAR TELEPHONE SYSTEM as the operator. The
Company has been granted permission from TOT Public Company Limited (TOT), under the
Agreement for operation dated 27 March 1990, to operate and service of Cellular Mobile
Telephone, either analog (NMT) or Digital GSM, 900 MHz frequency nationwide, parallel operation
for 25 years since 1 October 1990, being the first commercial operating date of service. The
Agreement ends on 30 September 2015. The Company is obliged to comply with various
conditions and pay revenue sharing in accordance with the Agreement.
Under the Agreement, the Company shall be entitled to immediately transfer the ownership right
of its tools and equipment or assets for operating the 900-MHz Cellular System to TOT when the
installation has been completed and the Company shall pay TOT annual revenue sharing in
accordance with the Agreement at the percentage of annual revenues and any benefit from the
mobile phone service prior to deducting any expenses and any tax or the minimum annual revenue
sharing stipulated in the Agreement. The Agreement does not specify a minimum cumulative
amount over the term of the Agreement. The percentages of the service revenues and minimum
annual revenue sharing for each year are as follows:
Year
Percentage of
revenues
Minimum annual revenue sharing

(in million Baht)
1 - 5
6 - 10
11 - 15
16 - 20
21 -25
15
20
25
30
30
13 to 147
253 to 484
677 to 965
1,236 to 1,460
1,460
2) The operation of a DATAKIT VIRTUAL CIRCUIT SWITCH as the operator. Advanced Data
network Communications Co., Ltd. (ADC), an indirect subsidiary, has been granted permission
from TOT Public Company Limited (TOT), under the Agreement dated 19 September 1989, for
rendering services for DATAKIT VIRTUAL CIRCUIT SWITCH in the area of the Metropolitan
Telephone Exchange.
14

Under the Agreement, ADC shall be entitled to immediately transfer the ownership right of its
tools and equipment or assets for operation of DATAKIT System to TOT when the installation
has been completed and ADC shall pay TOT annual revenue sharing in accordance with the
Agreement at the percentage of annual revenues and any benefit from service of DATAKIT
VIRTUAL CIRCUIT SWITCH prior to deducting any expenses and any tax or the minimum
annual revenue sharing stipulated in the Agreement.
ADC and TOT have mutually agreed to amend the Agreement and signed the Supplemental
Agreement on 25 September 1997 to extend the validity period from 10 years to 25 years (such
validity period shall be ended on 24 September 2022) and waive the collection of annual revenue
sharing under the agreements effective from 25 September 1997. ADC issued 10.75 million
ordinary shares at a par value of Baht 10 (11.23% of total shares) to TOT on 17 March 1998 in
consideration of such waiver. As at 31 December 2014, TOT owns 48.12% of ADCs total shares
(2013: 48.12%).
3) The operation of a 1800-MHz CELLULAR TELEPHONE SYSTEM as the operator. Digital
Phone Company Limited (DPC), a subsidiary, had been granted permission from CAT Telecom
Public Company Limited (CAT), under the Agreement for operation dated 19 November 1996
(the Agreement), to operate and service Cellular Mobile Telephone: Digital PCN (PERSONAL
COMMUNICATION NETWORK) 1800, frequency between 1747.9 MHz to 1760.5 MHz and
1842.9 MHz to 1855.5 MHz, nationwide. DPC started the operation commencing from 28 May
1997, ending 15 September 2013 and DPC was obliged to comply with various conditions and pay
revenue sharing in accordance with the Agreement.
Under the Agreement, DPC was entitled to immediately transfer the ownership right of its
machineries, all equipment and tools or assets for operation to CAT upon installation completion
and DPC paid CAT the annual revenue sharing at the percentage of annual revenues and any
benefit in according with the accrual basis from the mobile phone service prior to deducting any
expenses and any tax and fees which the minimum revenue sharing must accumulate, over the
term of the Agreement, not less than Baht 5,400 million as follows:
Year
Percentage of
revenues
Minimum annual revenue sharing

(in million Baht)
1
2-9
10 - 14
15 - 16
25
20
25
30
9
60 to 320
350 to 650
670
As at 31 December 2014, DPC paid the revenue sharing to CAT in a total amount of Baht 15,853
million (2013: Baht 15,853 million).
15

The Agreement expired on 15 September 2013. Thus, on 16 August 2013, The National Broadcast
and Telecommunication Commission (NBTC) has announced a temporary customer protection
measure after the Agreement expired to assign the operator to provide continuing services to the
subscribers for up to a further 1 year commencing from the Agreement expiration date. The
operator must comply with the rules and conditions set forth in the announcement. On 17 July
2014, the National Council for Peace and Order (NCPO) has announced an order No. 94/2557
Suspension the implementation of the Act on Organization to Assign Radio Frequency and to
Regulate the Broadcasting and Communications Services to instruct NBTC to postpone an
auction for spectrum licenses for 1 year commencing from the Order date. During the postpone
period, the operator has to comply with the NBTCs announcement on 16 August 2013 to provide
continuing services to the subscribers. The application of those rules and conditions has yet to be
clarified in detail by NBTC (including expenses that may be deducted in arriving at a notional
profit payable to the State). Consequently, the outcome of complying with this extension on DPC
and the Group is, currently, uncertain.
4) The operation of a 2.1-GHz CELLULAR TELEPHONE SYSTEM as the operator. Advanced
Wireless Network Co., Ltd. (AWN), a subsidiary, has been granted permission from the Office
of the National Broadcasting and Telecommunications Commission (NBTC), under the license
certificate (License) dated 7 December 2012, to operate and service Cellular Mobile Telephone,
frequency between 1950 MHz to 1965 MHz and 2140 MHz to 2155 MHz, nationwide in
accordance with the license certificate no. NBTC/FREQ/TEL/55/1. AWN started the operation
commencing from 7 December 2012, ending 6 December 2027 and AWN is obliged to comply
with various conditions and pay fees within the time period as specified in the License.
Details of the Companys subsidiaries and associate as at 31 December were as follows:
Name of the entities
Type of business
Country of Ownership interest

incorporation
(%)
2014
2013
Advanced Internet Revolution Co., Ltd. On liquidation process
Thailand
99.99
99.99
Advanced Datanetwork
Communications Co., Ltd. *
(* Indirect subsidiary)
Service provider of
online data
communications service
via telephone land line
and optical fiber
Thailand
51.00
51.00
Advanced Contact Center Co., Ltd.
Service provider of call

center
Thailand
99.99
99.99
Digital Phone Co., Ltd.
Service provider of digital

mobile phone system in
1800 MHz frequency
Thailand
98.55
98.55
Advanced Magic Card Co., Ltd.
Distributor of cash card

business
Thailand
99.99
99.99
Advanced Mpay Co., Ltd.
Service provider of
electronic payment and
cash card
Thailand
99.99
99.99
AIN GlobalComm Co., Ltd.
Service provider of
international telephone
service/gateway
Thailand
99.99
99.99
16

Name of the entities
Type of business
Country of Ownership interest

incorporation
(%)
2014
2013
Thailand
99.99
99.99
Advanced Wireless Network Co., Ltd.
Service provider of
cellular telephone
network in 2.1-GHz
frequency, distributor of
handsets and international
telephone service
Super Broadband Network Co., Ltd.
Network operator and

telecom service operator
i.e. internet (ISP),
international & national
internet gateway,
International Private
Leased Circuit (IPLC),
Internet Protocol Virtual
Private Network (IP
VPN), voice over IP, and
IP Television
Thailand
99.99
99.99
Wireless Device Supply Co., Ltd.
Importer and distributor

of handset and accessories
Thailand
99.99
99.99
Mobile Broadband Business Co., Ltd.

Completed the process of

liquidation on 28
February 2014
Thailand
Advanced Mobile Broadband Co., Ltd. Completed the process of

liquidation on 28
February 2014
Thailand
Fax Lite Co., Ltd.
Operate in land and

building rental and
service, and related
facilities
Thailand
99.98
99.97
MIMO Tech Co., Ltd.
Operate IT, content

aggregator, and
outsourcing service for
billing and collection
Thailand
99.99
99.99
Advanced Broadband Network

Co., Ltd.
Currently not start the

operation
Thailand
99.98
99.97
Transmission network
provider
Thailand
29.00
Associate
Information Highway Co., Ltd.
17

2
Basis of preparation of the financial statements
(a)
Statement of compliance
The financial statements are prepared in accordance with Thai Financial Reporting Standards (TFRS);
guidelines promulgated by the Federation of Accounting Professions (FAP); and applicable rules
and regulations of the Thai Securities and Exchange Commission.
The FAP has issued the following new and revised TFRS relevant to the Groups/Companys
operations and effective for accounting periods beginning on or after 1 January 2014:
TFRS
Topic
TAS 1 (revised 2012)
Presentation of Financial Statements
Statement of Cash Flows
Income Taxes
Leases
Revenue
Employee Benefits
The Effects of Changes in Foreign Exchange Rates
Related Party Disclosures
Investments in Associates
Interests in Joint Ventures
Interim Financial Reports
Impairments of Assets
Intangible Assets
TFRS 2 (revised 2012)
Share-based Payment
Non-current Assets held for Sale and Discontinued Operations
Operating Segments
TFRIC 1
Changes in Existing Decommissioning, Restoration and Similar

Liabilities
TFRIC 4
Determining whether an Arrangement contains a Lease
TFRIC 10
Interim Financial Reporting and Impairment
TFRIC 12
Service Concession Arrangements
TFRIC 13
Customer Loyalty Programmes
TFRIC 17
Distributions of Non-cash Assets to Owners
TFRIC 18
Transfers of Assets from Customers
TIC 15
Operating Leases-Incentives
TIC 27
Evaluating the Substance of Transactions Involving the Legal

Form of a Lease
TIC 29
Service Concession Arrangements Disclosure
TIC 32
Intangible Assets-Web Site Costs

18

The initial application of these new and revised TFRS has resulted in changes in certain of the
Groups/Companys accounting policies. The effects of these changes, where such effects are
considered material to the financial statements, are disclosed in note 3.
In addition to the above new and revised TFRS, the FAP has issued a number of other new and revised
TFRS which are effective for financial statements beginning on or after 1 January 2015 and have not
been adopted in the preparation of these financial statements. Those new and revised TFRS that are
relevant to the Groups/Companys operations are disclosed in note 42.
(b)
Basis of measurement
The financial statements have been prepared on the historical cost basis except for the following
material items in the statements of financial position:
- derivative financial instruments are measured at fair value;
- financial instruments at fair value through profit or loss are measured at fair value;
- available-for-sale financial assets are measured at fair value.
(c)
Functional and Presentation currency

The financial statements are presented in Thai Baht, which is the Group/Companys functional
currency. All financial information presented in Thai Baht has been rounded in the notes to the
financial statements to the nearest million unless otherwise stated.
(d)
Use of estimates and judgements

The preparation of financial statements in conformity with TFRS requires management to make
judgements, estimates and assumptions that affect the application of policies and reported amounts of
assets, liabilities, income and expenses. Actual results may differ from estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which estimates are revised and in any future periods
affected.
Information about significant areas of estimation uncertainty and critical judgements in applying
accounting policies that have the most significant effect on the amount recognised in the financial
statements is included in the following notes:
Note 4(s)
Note 9
Note 11
Note 14
Note 15
Note 13, 16
Note 18
Note 23
Note 37
Note 39, 40
Current and deferred taxation

Allowance for doubtful accounts
Allowance for obsolete inventories
Utilisation of property, plant and equipment
Utilisation of intangible asset under the Agreement for operations
Key assumptions used in discounted cash flow projections
Utilisation of intangible assets
Measurement of employee benefit obligations
Valuation of financial instruments
Provisions and contingencies / Significant events, commercial disputes and
litigation
19

3
Changes in accounting policies

(a)
Overview
From 1 January 2014, consequent to the adoption of new and revised TFRS as set out in note 2, the
Group/Company has changed its accounting policies in the following areas having a material effect on
the Groups/Companys financial statements:
Accounting for service concession arrangements
A description of the nature and effect of these changes in accounting policy are included in notes 3(b)
below:
(b)
Accounting for service concession arrangements
From 1 January 2014, the Group/Company has adopted TFRIC 12 - Service concession arrangements.
TFRIC 12 gives guidance on the accounting by operators for public-to-private service concession
agreements under which the grantor controls and regulates the services provided; to whom they are
provided; and at what price; and also controls any significant residual interest in the related
infrastructure at the end of the agreement term. The operator recognises its interest in the concession
as either a financial asset or an intangible asset arising from the concession agreement, depending on
criteria set out in TFRIC 12, and not as property, plant and equipment. The Groups/Companys
accounting policy for service concession arrangements is as follows:
The Group/Company recognises an intangible asset arising from the Agreements for operation when it
has a right to charge for usage of infrastructure of the Agreements for operation. An intangible asset
received as consideration for providing construction or upgrade services in the Agreements for
operation is measured at fair value upon initial recognition. Subsequent to initial recognition the
intangible asset is measured at cost, which includes capitalised borrowing costs, less accumulated
amortisation and accumulated impairment losses.
Revenue relating to construction or upgrade services under the Agreements for operation is recognised
based on the stage of completion of the work performed. Operation or service revenue is recognised in
the period in which the services are provided by the Group/Company. When the Group/Company
provides more than one service in the Agreements for operation, the consideration received is
allocated by reference to the relative fair values of the services delivered.
The Group/Company has recognised no profit margin on such revenues because the (i) model of the
Agreements for operation is not designed to generate profits from the infrastructure construction, but
from the service rendering; (ii) the way the Group/Company manages the constructions is highly
based on outsourced services and; (iii) there are no profit margins on the infrastructure construction in
the Groups/Companys business and operations. Management believes that any gains on these
operations are irrelevant and, accordingly, no amounts in addition to the effective costs have been
considered as a part of revenues. Therefore, construction revenues and costs are presented in the
statements of income in the same amounts.
20

The effects of the change are recognised retrospectively in the financial statements. The impact of the
change on the financial statements is as follows:
Consolidated
Statement of income for the
year ended 31 December
2014
Increase in construction income from the

Agreements for operation
Increase in construction cost from the
Agreements for operation
Profit (loss)
Separate
2013
2014
(in million Baht)
2013
600
3,766
600
3,640
(600)
-
(3,766)
-
(600)
-
(3,640)
-
Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these
financial statements except as explained in note 3, which addresses change in accounting policies.
(a)
Basis of consolidation
The consolidated financial statements relate to the Company and its subsidiaries (together referred to
as the Group).
Business combinations
The Group/Company applies the acquisition method for all business combinations other than those
with entities under common control.
Control is the power to govern the financial and operating policies of an entity so as to obtain benefits
from its activities. In assessing control, the Group/Company takes into consideration potential voting
rights that currently are exercisable. The acquisition date is the date on which control is transferred to
the acquirer. Judgment is applied in determining the acquisition date and determining whether control
is transferred from one party to another.
Goodwill is measured as the fair value of the consideration transferred including the recognised
amount of any non-controlling interest in the acquiree, less the net recognised amount (generally fair
value) of the identifiable assets acquired and liabilities assumed, all measured as of the acquisition
date.
Consideration transferred includes the fair values of the assets transferred, liabilities incurred by the
Group/Company to the previous owners of the acquiree, and equity interests issued by the
Group/Company. Consideration transferred also includes the fair value of any contingent
consideration and share-based payment awards of the acquiree that are replaced mandatorily in the
business combination. If a business combination results in the termination of pre-existing relationships
between the Group/Company and the acquiree, then the lower of the termination amount, as contained
in the agreement, and the value of the off-market element is deducted from the consideration
transferred and recognised in other expenses.
When share-based payment awards exchanged (replacement awards) for awards held by the acquirees
employees (acquirees awards) relate to past services, then a part of the market-based measure of the
awards replaced is included in the consideration transferred. If they require future services, then the
difference between the amount included in consideration transferred and the market-based measure of
the replacement awards is treated as post-combination compensation cost.
21

A contingent liability of the acquiree is assumed in a business combination only if such a liability
represents a present obligation and arises from a past event, and its fair value can be measured
reliably.
The Group/Company measures any non-controlling interest at its proportionate interest in the
identifiable net assets of the acquiree.
Transaction costs that the Group/Company incurs in connection with a business combination, such as
legal fees, and other professional and consulting fees are expensed as incurred.
Acquisitions from entities under common control
Business combinations of entities or businesses under common control are accounted for using a
method similar to the pooling of interest method and in accordance with the Guideline issued in 2009
by the FAP.
Subsidiaries
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power,
directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits
from its activities. The financial statements of subsidiaries are included in the consolidated financial
statements from the date that control commences until the date that control ceases.
The accounting policies of subsidiaries have been changed where necessary to align them with the
policies adopted by the Group. Losses applicable to non-controlling interests in a subsidiary are
allocated to non- controlling interests even if doing so causes the non- controlling interests to have a
deficit balance.
Loss of control
Upon the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any noncontrolling interests and the other components of equity related to the subsidiary. Any surplus or
deficit arising on the loss of control is recognised in profit or loss. If the Group retains any interest in
the previous subsidiary, then such interest is measured at fair value at the date that control is lost.
Subsequently it is accounted for as an equity-accounted investee or as an available-for-sale financial
asset depending on the level of influence retained.
Associate
Associate is the entity in which the Group has significant influence, but not control, over the financial
and operating policies. Significant influence is presumed to exist when the Group holds between 20%
and 50% of the voting power of another entity.
Investment in associate is accounted for in the consolidated financial statements using the equity
method (equity-accounted investees) and is recognised initially at cost. The cost of the investment
includes transaction cost.
The consolidated financial statements include the Groups share of profit or loss and other
comprehensive income of equity accounted investees from the date that significant influence
commences until the date that significant influence ceases. When the Groups share of losses exceeds
its interest in an equity accounted investee, the Groups carrying amount of that interest is reduced to
zero and recognition of further losses is discontinued except to the extent that the Group has an
obligation or has made payments on behalf of the investee.
22

Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income or expenses arising from intra-group
transactions, are eliminated in preparing the consolidated financial statements. Unrealised losses are
eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of
impairment.
(b)
Foreign currencies
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currency (Thai Baht) of
the Group entities at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to
the functional currency at the foreign exchange rates ruling at that date. Foreign exchange differences
arising on translation are recognised in profit or loss.
Non-monetary assets and liabilities measured at cost in foreign currencies are translated to the
functional currency using the foreign exchange rates ruling at the dates of the transactions.
(c)
Derivative financial instruments

The Group/Company uses financial instruments to manage exposure to fluctuations in foreign
currency exchange and interest rates. These instruments, which mainly comprise forward foreign
currency contracts and cross currency swap agreements, are recorded in the financial statements on
the contract date. The purpose of these instruments is to manage risk.
Forward foreign exchange contracts protect the Group/Company from fluctuations in exchange rates
by establishing the rate at which a foreign currency asset or liability will be settled. Forward contracts
are recorded as forward contracts receivable and payable on inception, and are translated at the year
end exchange rate. Unrealised gains or losses on transactions are recognised in profit and loss.
Premiums or discounts are amortised in the statement of income on a straight-line basis over the
contract period.
Interest rate derivatives help the Group/Company to better manage effects from fluctuations in
floating interest rates. Any differential to be received or paid on an interest rate derivative is
recognised as a component of interest income or expense over the period of such instrument. Gains or
losses of early termination of interest rate derivatives or on repayment of the borrowing are charged to
profit or loss.
(d)

Cash and cash equivalents in the statements of cash flows comprise cash balances, call deposits and
highly liquid short-term investments with original maturities of three month or less.
(e)
Trade and other accounts receivable

Trade and other accounts receivable are stated at their invoice value less allowance for doubtful
accounts.
The allowance for doubtful accounts is assessed primarily on analysis of payment histories and future
expectations of customer payments. Bad debts are written off when incurred.
23

(f)
Inventories
Inventories comprise mobile phones, refill cards, sim cards, premiums and spare parts used for repairs
and services.
Inventories are stated at the lower of cost and net realisable value.
Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the
inventories to their present location and condition. Cost is calculated as follows:
Finished goods
Spare parts (mobile phones and network)
Datanet equipment
- moving weighted average method

- moving weighted average method
- first-in, first-out (FIFO) method
Net realisable value is the estimated selling price in the ordinary course of business less the estimated
costs to complete and to make the sale.
An allowance is made for all deteriorated, changed, obsolete and slow-moving inventories.
(g)
Investments
Investments in associate and subsidiaries
Investments in subsidiaries in the separate financial statements of the Company are accounted for
using the cost method less impairment losses. Investment in associate in the consolidated financial
statements is accounted for using the equity method.
Investments in other debt and equity securities
Fixed deposit at bank is presented as part of current investment with maturities over three months, not
exceeding one year.
Debt securities and marketable equity securities held for trading are classified as current assets and are
stated at fair value, with any resultant gain or loss recognised in profit or loss.
Debt securities that the Group/Company has the positive intent and ability to hold to maturity are
classified as held-to-maturity investments. Held-to-maturity investments are stated at amortised cost
less any impairment losses. The difference between the acquisition cost and redemption value of such
debt securities is amortised using the effective interest rate method over the period to maturity.
Debt securities and marketable equity securities, other than those securities held for trading or
intended to be held to maturity, are classified as available-for-sale investments. Available-for-sale
investments are, subsequent to initial recognition, stated at fair value, and changes therein, other than
impairment losses and foreign currency differences on available-for-sale monetary items, are
recognised directly in equity. Impairment losses and foreign exchange differences are recognised in
profit or loss. When these investments are derecognised, the cumulative gain or loss previously
recognised directly in equity is recognised in profit or loss. Where these investments are interestbearing, interest calculated using the effective interest method is recognised in the profit or loss.
Equity securities which are not marketable are stated at cost less any impairment losses.
The fair value of financial instruments classified as held-for-trading and available-for-sale is
determined as the quoted bid price at the reporting date.
24

Disposal of investments
On disposal of an investment, the difference between net disposal proceeds and the carrying amount
together with the associated cumulative gain or loss that was reported in equity is recognised in profit
or loss.
If the Group/Company disposes of part of its holding of a particular investment, the deemed cost of
the part sold is determined using the FIFO method applied to the carrying value of the total holding of
the investment.
(h)

Recognition and measurement
Owned assets
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of selfconstructed assets includes the cost of materials and direct labour, any other costs directly attributable
to bringing the assets to a working condition for their intended use, the costs of dismantling and
removing the items and restoring the site on which they are located, and capitalised borrowing costs.
Purchased software that is integral to the functionality of the related equipment is capitalised as part
of that equipment.
When parts of an item of property, plant and equipment have different useful lives, they are accounted
for as separate items (major components) of property, plant and equipment.
Gains and losses on disposal of an item of property, plant and equipment are determined by
comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and
are recognised net in profit or loss. When revalued assets are sold, the amounts included in the
revaluation reserve are transferred to retained earnings.
Leased assets
Leases in terms of which the Group/Company substantially assumes all the risk and rewards of
ownership are classified as finance leases. Property, plant and equipment acquired by way of finance
leases is capitalised at the lower of its fair value and the present value of the minimum lease payments
at the inception of the lease, less accumulated depreciation and impairment losses. Lease payments
are apportioned between the finance charges and reduction of the lease liability so as to achieve a
constant rate of interest on the remaining balance of the liability. Finance charges are charged directly
to profit or loss.
Subsequent costs
The cost of replacing a part of an item of property, plant and equipment is recognised in the carrying
amount of the item if it is probable that the future economic benefits embodied within the part will
flow to the Group/Company, and its cost can be measured reliably. The carrying amount of the
replaced part is derecognised. The costs of the day-to-day servicing of property, plant and equipment
are recognised in profit or loss as incurred.
25

Depreciation
Depreciation is calculated based on the depreciable amount, which is the cost of an asset, or other
amount substituted for cost, less its residual value.
Depreciation is charged to profit or loss on a straight-line basis over the estimated useful lives of each
component of an item of property, plant and equipment. The estimated useful lives are as follows:
Buildings and building improvements
Leasehold building improvements
Computer, tools and equipment
Furniture, fixtures and office equipment
Communication equipment for rental
Communication equipment for major
corporate customer rental
Vehicles
5, 20
5, 10
2 - 20
2-5
3
years
years
years
years
years
Over period of rental agreement

5 years
No depreciation is provided on freehold land or assets under construction and installation.

Depreciation methods, useful lives and residual values are reviewed at each financial year-end and
adjusted if appropriate.
(i)
Intangible assets
Assets under the Agreements for operations
Assets under the Agreements for operations represent the cost of certain equipment and other assets
which have been or have to be transferred to the grantor of the Agreements of operations and are
stated at cost less accumulated amortisation and impairment losses.
Goodwill
Goodwill that arises upon the acquisition of subsidiaries is included in intangible assets. The
measurement of goodwill at initial recognition is described in note 4(a). Subsequent to initial
recognition, goodwill is measured at cost less accumulated impairment losses. In respect of equityaccounted investees, the carrying amount of goodwill is included in the carrying amount of the
investment, and an impairment loss on such an investment is not allocated to any asset, including
goodwill, that forms part of the carrying amount of the equity-accounted investee.
License for operation right in spectrum of telecommunication represents the acquisition cost of license
to operate a mobile phone system under 2.1-GHz.
The operation right
The operation right represents the acquisition cost of certain rights and obligations to operate a mobile
phone system.
Other intangible assets that are acquired by the Group/Company, which have finite useful lives, are
measured at cost less accumulated amortisation and accumulated impairment losses.
26

Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in
the specific asset to which it relates. All other expenditure, including expenditure on internally
generated goodwill and brands, is recognised in profit or loss as incurred.
Amortisation
Amortisation is based on the cost of the asset, or other amount substituted for cost, less its residual
value.
Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of
intangible assets, other than goodwill, from the date that they are available for use, since this most
closely reflects the expected pattern of consumption of the future economic benefits embodied in the
asset.
The estimated useful lives are as follows:
- Mobile phone network digital system
- Datanet tools and equipments
- Computer system under the Agreement for
operation of 1800-MHz operation
Software licences and software development costs
10 years not exceeding the remaining

period of the Agreement for operations
5, 10 years
License for operation right in spectrum of

telecommunication
Over the period of the license
The operation right
Over the period of the Agreement for operations
No amortisation is provided on advance payment and assets under construction of the assets under the
Agreements for operations.
Amortisation methods, useful lives and residual values are reviewed at each financial year-end and
adjusted if appropriate.
(j)
Other assets
Deferred charges
Deferred charges represent commitment fees for long-term loans, costs of long-term leases of space
for base stations, expenditures relating to the increase of power of electricity at base stations and
expenditures relating to the improvement project of mobile phone service network and are stated at
cost less accumulated amortisation and impairment losses.
27

Amortisation
Amortisation is based on the cost of the asset, or other amount substituted for cost, less its residual
value.
Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of
intangible assets, other than goodwill, from the date that they are available for use, since this most
closely reflects the expected pattern of consumption of the future economic benefits embodied in the
asset. The estimated useful lives for the current and comparative periods are as follows:
Commitment fees of long-term loans
Bond issuing cost
Costs of long-term leases for base stations
Expenditures relating to the increase of power
of electricity at base stations
Expenditures relating to the improvement project
of mobile phone service network
Operation right of the datanet service
(k)
Over the loan agreement period

Over the debentures period
Over the lease agreement period
Over the remaining period of the Agreement
of operation period
4 years
10 years not exceeding the remaining period
of the Agreement for operations
Impairment
The carrying amounts of the Groups/Companys assets are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such indication exists, the assets
recoverable amounts are estimated. For goodwill and intangible assets that have indefinite useful
lives or are not yet available for use, the recoverable amount is estimated each year at the same time.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit
exceeds its recoverable amount. The impairment loss is recognised in profit or loss.
When a decline in the fair value of an available-for-sale financial asset has been recognised directly in
equity and there is objective evidence that the value of the asset is impaired, the cumulative loss that
had been recognised directly in equity is recognised in profit or loss even though the financial asset
has not been derecognised. The amount of the cumulative loss that is recognised in profit or loss is
the difference between the acquisition cost and current fair value, less any impairment loss on that
financial asset previously recognised in profit or loss.
Calculation of recoverable amount
The recoverable amount of held-to-maturity securities and receivables carried at amortised cost is
calculated as the present value of the estimated future cash flows discounted at the original effective
interest rate. Receivables with a short duration are not discounted.
The recoverable amount of available-for-sale financial assets is calculated by reference to the fair
value.
The recoverable amount of a non-financial asset is the greater of the assets value in use and fair value
less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset. For an asset that does not generate cash inflows largely
independent of those from other assets, the recoverable amount is determined for the cash-generating
unit to which the asset belongs.
28

Reversals of impairment
An impairment loss in respect of a financial asset is reversed if the subsequent increase in recoverable
amount can be related objectively to an event occurring after the impairment loss was recognised in
profit or loss. For financial assets carried at amortised cost and available-for-sale financial assets that
are debt securities, the reversal is recognised in profit or loss. For available-for-sale financial assets
that are equity securities, the reversal is recognised in other comprehensive income.
An impairment loss in respect of goodwill is not reversed. Impairment losses recognised in prior
periods in respect of other non-financial assets are assessed at each reporting date for any indications
that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a
change in the estimates used to determine the recoverable amount. An impairment loss is reversed
only to the extent that the assets carrying amount does not exceed the carrying amount that would
have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
(l)
Interest-bearing liabilities are recognised initially at fair value less attributable transaction charges.
Subsequent to initial recognition, interest-bearing liabilities are stated at amortised cost with any
difference between cost and redemption value being recognised in profit or loss over the period of the
borrowings on an effective interest basis.
(m)
Trade and other accounts payable

Trade and other accounts payable are stated at cost.
(n)
Employee benefits
Provident fund
The Group/Company had provident funds which is a defined contribution plan. The funds asset of
the provident fund is separated from the Groups/Companys asset and has been managed by a
licensed fund manager. The provident fund receives a cash contribution from employee and the
related Group/Company. The contribution expenditure of the provident fund is recognised as expense
in profit or loss as accrued.
Employee benefit obligations and long-term service award
The obligation in respect of post-employment benefits that provide compensation according to labor
law and long-term service award are recognised in the financial statements based on calculations by a
qualified actuary using the projected unit credit method.
The Group/Company recognised all actuarial gain and loss arising from employee benefit obligations
in other comprehensive income and all expenses related to employee benefit obligations in profit or
loss.
Termination benefits
Termination benefits are recognised as an expense when the Group/Company is committed
demonstrably, without realistic possibility of withdrawal, to a formal detailed plan to either terminate
employment before the normal retirement date, or to provide termination benefits as a result of an
offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are
recognised as an expense if the Group/Company has made an offer of voluntary redundancy, it is
probable that the offer will be accepted, and the number of acceptances can be estimated reliably. If
benefits are payable more than 12 months after the reporting period, then they are discounted to their
present value.
29

Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as
the related service is provided.
A liability is recognised for the amount expected to be paid under short-term cash bonus or profit
sharing plans if the Group/Company has a present legal or constructive obligation to pay this amount
as a result of past service provided by the employee, and the obligation can be estimated reliably.
(o)
Provisions
A provision is recognised if, as a result of a past event, the Group/Company has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of economic
benefits will be required to settle the obligation. Provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects current market assessments of the time value
of money and the risks specific to the liability. The unwinding of the discount is recognised as finance
cost.
(p)
Revenue
Revenue excludes value added tax and is arrived at after deduction of trade discounts and volume
rebates.
Sale of goods and services rendered
Revenue is recognised in profit or loss when the significant risks and rewards of ownership have been
transferred to the buyer. No revenue is recognised if there is continuing management involvement
with the goods or there are significant uncertainties regarding recovery of the consideration due,
associated costs or the probable return of goods. Service income is recognised as services are
provided. Revenue from mobile phone and call center services are recognised when services are
rendered to customers. Revenue from rendering voice/data communications via telephone line
network services is recognised when service is rendered.
Rental income
Rental income from rental equipment is recognised in profit or loss on a straight-line basis over the
term of the lease. Lease incentives granted are recognised as an integral part of the total rental
income.
Service concession arrangements
Revenue relating to construction or upgrade services under a service concession arrangement is
recognised based on the stage of completion of the work performed. Operation or service revenue is
recognised in the period in which the services are provided by the Group/Company. When the
Group/Company provides more than one service in a service concession arrangement, the
consideration received is allocated by reference to the relative fair values of the services delivered.
Investments
Revenue from investments comprises dividend and interest income from investments and bank
deposits.
30

Dividend income
Dividend income is recognised in profit or loss on the date the Groups/Companys right to
receive payments is established.
Interest income
Interest income is recognised in profit or loss as it accrues.
(q)
Finance costs
Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions and
contingent consideration, losses on disposal of available-for-sale financial assets, fair value losses on
financial assets at fair value through profit or loss, impairment losses recognised on financial assets
(other than trade receivables), and losses on hedging instruments that are recognised in profit or loss.
Borrowing costs that are not directly attributable to the acquisition, construction or production of a
qualifying asset are recognised in profit or loss using the effective interest method.
(r)
Lease payments
Payments made under operating leases are recognised in profit or loss on a straight line basis over the
term of the lease. Lease incentives received are recognised in profit or loss as an integral part of the
total lease expense, over the term of the lease.
Contingent lease payments are accounted for by revising the minimum lease payments over the
remaining term of the lease when the lease adjustment is confirmed.
Determining whether an arrangement contains a lease
At inception of an arrangement, the Group/Company determines whether such an arrangement is or
contains a lease. A specific asset is the subject of a lease if fulfilment of the arrangement is dependent
on the use of that specified asset. An arrangement conveys the right to use the asset if the arrangement
conveys to the Group/Company the right to control the use of the underlying asset.
At inception or upon reassessment of the arrangement, the Group/Company separates payments and
other consideration required by such an arrangement into those for the lease and those for other
elements on the basis of their relative fair values. If the Group/Company concludes for a finance lease
that it is impracticable to separate the payments reliably, an asset and a liability are recognised at an
amount equal to the fair value of the underlying asset. Subsequently the liability is reduced as
payments are made and an imputed finance charge on the liability is recognised using the
Groups/Companys incremental borrowing rate.
(s)
Income tax
Income tax expense for the year comprises current and deferred tax. Current and deferred tax are
recognised in profit or loss except to the extent that they relate to a business combination, or items
recognised directly in equity or in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using
tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in
respect of previous years.
31

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred
tax is not recognised if it is probable that they will not be utilised in the foreseeable future.
The measurement of deferred tax reflects the tax consequences that would follow the manner in which
the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its
assets and liabilities.
Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences
when they adjust, using tax rates enacted or substantively enacted at the reporting date.
In determining the amount of current and deferred tax, the Group/Company takes into account the
impact of uncertain tax positions and whether additional taxes and interest may be due. The
Group/Company believes that its accruals for tax liabilities are adequate for all open tax years based
on its assessment of many factors, including interpretations of tax law and prior experience. This
assessment relies on estimates and assumptions and may involve a series of judgements about future
events. New information may become available that causes the Group/Company to change its
judgement regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact
tax expense in the period that such a determination is made.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets, and they relate to income taxes levied by the same tax authority on the same
taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a
net basis or their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be
available against which the temporary differences can be utilised. Deferred tax assets are reviewed at
each reporting date and reduced to the extent that it is no longer probable that the related tax benefit
will be realised.
(t)
Earnings per share

The Group/Company presents basic and diluted earnings per share (EPS) data for its ordinary shares.
Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the
Company by the weighted average number of ordinary shares outstanding during the period, adjusted
for own shares held. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary
shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares
held, for the effects of all dilutive potential ordinary shares, which comprise convertible notes and
share options granted to employees.
(u)
Segment reporting
Segment results that are reported to the Groups CEO (the chief operating decision maker) include
items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
32

5
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. 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.
During the year, the Group/Company has entered into a number of transactions with related parties,
the terms of which are negotiated in the ordinary course of business and according to normal trade
conditions. Purchases of products and services are charged at reasonable prices and those prices are
comparable to the market rate with general trading conditions. Consulting and management service
fees are charged on a mutually agreed basis as a percentage of assets.
Relationships with related parties that control or jointly control the Company or are being controlled
or jointly controlled by the Company or have transactions with the Group were as follows:
Name of entities
Country of
incorporation
/ nationality
Subsidiaries
Thailand
More than 50% shareholding or being controlled.
Intouch Holdings Public

Company Limited and its
related parties
(INTOUCH Group)
SingTel Strategic Investments
Pte Ltd. and its related parties
(SingTel Group)
Thailand and
Laos
Intouch Holdings Public Company Limited

(INTOUCH) is a major shareholder, 40.45%
shareholding and has some joint directors.
Singapore
SingTel Strategic Investments Pte Ltd. (SingTel)

is a major shareholder, 23.32% shareholding.
Thailand
Associate
Other related parties
Thailand
Other parties have some joint directors and

directors of related parties.
33
Nature of relationships

Significant transactions for the years ended 31 December with related parties were as follows:
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
Year ended 31 December

Service income
Subsidiaries
INTOUCH Group
SingTel Group
Total
42
434
2
478
70
593
2
665
36,172
22
77
1
36,272
13,522
24
514
2
14,062
Sales of prepaid cards

Subsidiaries
137
Sales of Refill on mobile (ROM)

Subsidiaries
28
Sales of property and other assets

Subsidiaries
227
24
Dividend income
Subsidiaries
22,848
8,216
Interest income
Subsidiaries
Associate
Total
2
2
1,220
1,220
1,102
1,102
Other income
Subsidiaries
INTOUCH Group
Total
7
7
4
4
704
704
731
731
563
555
1,118
674
526
1
1,201
11,411
72
117
11,600
21,128
72
290
1
21,491
285
1,345
25
475
Sale promotion expense

Subsidiaries
INTOUCH Group
Total
1
1
1
1
36
36
136
1
137
Commission expense
Subsidiary
1,234
4,188
184
163
183
163
41
272
Rental and other service expenses

Subsidiaries
INTOUCH Group
SingTel Group
Total
Advertising expense
INTOUCH Group
Management benefit expense

Purchases of property and other assets
Subsidiaries
34

Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
Year ended 31 December

Finance costs
Subsidiaries
INTOUCH Group
Total
Dividend paid
INTOUCH
SingTel
Total
1
1
1
1
168
168
42
1
43
14,180
8,175
22,355
13,711
7,904
21,615
14,180
8,175
22,355
13,711
7,904
21,615
Balances as at 31 December with related parties were as follows:

Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
Subsidiaries
INTOUCH Group
SingTel Group
Total
Accrued income
Subsidiaries
INTOUCH Group
SingTel Group
Total
Other receivables
- Other receivable
Subsidiaries
- Accrued interest income
Subsidiaries
Total
Subsidiaries
Associate
Total
5
17
22
11
96
107
5,049
2
5,051
3,962
4
93
4,059
5
3
8
3
30
33
2,292
3
2,295
2,913
29
2,942
444
444
176
177
95
95
35,590
35,590
35,387
35,387
As at 31 December 2014, the Group has short-term loans to associate bearing interest at the rate of 5.25%
per annum and the Company has short-term loans at call to subsidiaries represent promissory notes,
bearing interest at the rate of 3.83% per annum (2013: 3.73% per annum).
35

Movements during the years ended 31 December of loans to related parties were as follows:
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
At 1 January
Increase
Decrease
At 31 December
100
(5)
95
35,387
14,648
(14,445)
35,590
19,305
19,240
(3,158)
35,387
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
Long-term rental deposit
Subsidiary
Subsidiaries
INTOUCH Group
SingTel Group
Total
Other payables
- Other payable
Subsidiaries
INTOUCH Group
SingTel Group
- Accrued expenses
Subsidiaries
INTOUCH Group
SingTel Group
Total
Short-term loan from related parties
Subsidiaries
655
265
30
21
51
41
22
63
886
1
20
907
500
1
501
30
30
57
12
69
308
1
309
829
17
12
858
118
12
130
160
381
57
438
507
810
19
10
839
1,148
1,522
50
24
1,596
2,454
4,400
As at 31 December 2013, short-term loan from related parties represent promissory notes, bearing
interest at the rate of 2.49% per annum.
36

Movements during the years ended 31 December of loans from related parties of the Company were as
follows:
Separate
2014
2013
(in million Baht)
Short-term loans from related parties
Subsidiaries
At 1 January
Increase
Decrease
At 31 December
4,400
14,200
(18,600)
-
5,500
(1,100)
4,400
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
Long-term debentures
INTOUCH Group
Total
17
17
34
3
3
3
3
Significant agreements with related parties

The Group/Company has entered into agreements with related parties and has commitment for receipts
and payments according to rates under the terms and conditions stipulated in the agreements. The
significant agreements with related parties are as follows:
1) The Group has entered into interconnection and national roaming agreements among its related
parties. The suspension or termination of the agreement shall be referred to the regulations and
conditions of the National Telecommunications Commission.
2) The Group has entered into site share agreements among its related parties to provide site area
including related facilities for installation of telecommunication equipment. The counterparty has a
right to terminate the agreement by giving advance written notice to the counterparty of not less
than 60 days.
3) The Group has received a service of a call center from Advanced Contact Center Co., Ltd.
(ACC), a subsidiary. ACC will provide service and required information including resolving
problem requests from the customers of the Group.
4) Advanced Contact Center Co., Ltd., a subsidiary, has entered into a call center service agreement
with Teleinfo Media Plc. (TMC), a related party. TMC will arrange the agents and provide call
center operation to execute each of incoming call service. The counterparty has a right to terminate
the agreement by giving the counterparty a written notice for 30 days in advance.
5) The Company and its related parties have entered into an agreement with Advanced Magic Card
Co., Ltd. and Advanced Mpay Co., Ltd, its subsidiaries, to provide payment service for
goods/service purchased through electronic payments and cash card. The counterparty has a right
to terminate the agreement by giving advance written notice of not less than 30 days.
37

6) Advanced Magic Card Co., Ltd. and Advanced Mpay Co., Ltd, its subsidiaries, have entered into
an agreement with Wireless Device Supply Co., Ltd., a subsidiary, to distribute electronic money
and cash card. The counterparty has a right to terminate the agreement by giving advance written
notice of not less than 15 days.
7) The Company and its subsidiaries have entered into an agreement with Wireless Device Supply
Co., Ltd., a subsidiary, to provide card packaging. The counterparty has a right to terminate the
agreement by giving advance written notice of not less than 30 days.
8) The Company and its subsidiaries have entered into an international roaming service agreement
with the SingTel Group, related parties. The counterparty has a right to terminate the agreement by
giving a written notice of 60 days in advance.
9) The Company and its subsidiaries have entered into an agreement with MIMO Tech Co., Ltd., a
subsidiary, of providing or aggregating the variety of content as value added services on mobile
network or wireless device. The counterparty has a right to terminate the agreement by giving a
written notice of 30 days in advance.
10) The Company and its subsidiaries have entered into an agreement with its related parties to provide
or aggregate the variety of content as value added services on mobile network or wireless device.
The counterparty has a right to terminate the agreement by giving advance written notice to the
counterparty of not less than 30 days.
11) The Company has entered into a satellite transponder lease agreement with Thaicom Public
Company Limited, a related party, for a monthly fee according to the rate and condition specified
in the agreement. The agreement is valid until 21 June 2015.
12) MIMO Tech Co., Ltd., a subsidiary, has entered into agreements with I.T. Applications and
Services Company Limited, a related party, to receive computer system maintenance services. The
agreement is valid for one year and is renewable on an annual basis. The counterparty has a right
to terminate the agreement by giving advance written notice of 3 months.

Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
16
16
13
15
716
736
38
87
17,149
13,797
1,628
3,160
Note
Cash on hand
Cash at bank - current accounts
Cash at bank - saving accounts
Highly liquid short-term
investments
Less Specifically-used bank
deposits
Total
86
17,967
705
15,254
1,679
703
3,965
(3,709)
14,258
(3,781)
11,473
1,679
3,965
As at 31 December 2014, the effective interest rate on cash and cash equivalents was 0.06% - 2.44%
per annum (2013: 0.01% - 2.60% per annum).
38

7

In order to comply with the Notification of the Bank of Thailand applicable to the electronic cash card
business, the subsidiaries held deposits at call with banks equal to the subsidiaries outstanding
balance of advance receipts from customers which cannot be used for other purposes apart from
payments to service providers as at 31 December 2014 amounting to Baht 3,709 million (2013: Baht
3,781 million).
Other investments
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
Current investments
Fixed deposit at financial institutions
Available-for-sale securities
Other long-term investments
- pledged
Other non - marketable equity securities
Total
1,542
1,542
92
1,485
1,577
11
47
58
1,600
11
93
104
1,681
47
47
47
93
93
93

As at 31 December 2014, fixed deposits at financial institutions of the Group have interest rates of
1.50% per annum (2013: 2.25% - 3.13% per annum).
As at 31 December 2014, the Group had debt securities held through private funds, managed by
independent fund manager and have interest rates from 0.37% to 5.63% per annum (2013: 0.50% to
4.00% per annum).
Movements during the years ended 31 December of available-for-sale of marketable equity and debt
securities were as follows:
Consolidated
2014
2013
Separate
2014
2013
(in million Baht)

Current investments
At 1 January
Increase during the year
Decrease during the year
At 31 December
1,485
1,940
(1,883)
1,542
39
751
1,680
(946)
1,485

Other non - marketable equity securities
On 30 September 2014, at the extraordinary general meeting of Bride Mobile Pte Ltd., resolutions
were passed to approve the decrease in ordinary shares of each shareholder. The Companys
investment in Bridge Mobile Pte Ltd. has decreased from 2.20 million ordinary shares (USD 2.70
million (Baht 93 million) to 0.80 million ordinary shares (USD 1.30 million (Baht 47 million)). The
Company still owns 10% of its paid-up share capital.
On 23 April 2014, at the annual general meeting of the Clearing House for Number Portability Co.,
Ltd., the shareholders approved the appropriation of dividend of Baht 2,500 per share to shareholders
on 19 May 2014, amounting to Baht 10 million and Baht 5 million for the Group and the Company,
respectively.
On 1 October 2013, the Company transferred shares of Clearing House for Number Portability Co.,
Ltd., to Advanced Wireless Network Company Limited (AWN), a subsidiary, of 2,000 ordinary
shares, totaling Baht 0.2 million. As a result, the Companys ownership changed from 20% to 10% of
its paid-up share capital (The groups ownership represented 20%).
Related parties:
- Trade accounts receivable
- Accrued income
Consolidated
Separate
Note 2014
2013
2014
2013
(in million Baht)
5
22
107
5,051
4,059
8
33
2,295
2,942
30
140
7,346
7,001
Other parties:
- Trade accounts receivable
- Accrued income
5,889
5,478
11,367
11,397
(982)
10,415
Total
Less allowance for doubtful accounts
Net
Bad and doubtful debts expense for the year
1,240
40
5,930
4,966
10,896
11,036
(772)
10,264
787
1,038
1,795
2,833
10,179
(235)
9,944
37
2,579
2,331
4,910
11,911
(381)
11,530
360

Aging analyses for trade accounts receivable are as follows:
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
Related parties
Current - 3 months
Overdue 3 - 6 months
30
30
Other parties
Current - 3 months
Overdue over 12 months
Less allowance for doubtful accounts
Net
122
16
2
140
7,335
11
7,346
6,778
221
2
7,001
2,899
131
203
1,677
4,910
(381)
4,529
9,028
305
117
1,917
11,367
(982)
10,385
8,699
262
218
1,717
10,896
(772)
10,124
834
52
80
1,867
2,833
(235)
2,598
10,415
10,264
9,944
11,530
The normal credit term granted by the Group/Company ranges from 14 days to 30 days.
As at 31 December 2014, the Group/Company had the outstanding balance of accrued income of
revenue sharing in international direct dial service (IDD) of Baht 1,574 million and Baht 1,565
million, respectively (2013: Baht 1,526 million and Baht 1,517 million, respectively). Part of that
outstanding is presented in overdue 12 months of Baht 1,515 million and Baht 1,506 million,
respectively (2013: Baht 1,280 million and Baht 1,272 million, respectively).
On 16 January 2013, the Company has submitted a dispute to the Arbitration Institute demanding TOT
Public Company Limited (TOT) to pay this receivable plus interest, the total amount of Baht 1,526
million.
On 26 November 2013, Digital Phone Company Limited, a subsidiary, has submitted a dispute to the
Central Administrative Court demanding CAT Public Company Limited (CAT) to pay this
receivable plus interest, the total amount of Baht 11 million.
10
Other receivables
Note
Prepaid expenses
Account receivables - cash card/
refill on mobile
Account receivables - Revenue
department
Withholding tax
Others
Total
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
1,434
1,038
349
530
41
969
913
1,454
807
1,237
5,901
1,168
299
1,433
4,851
698
940
1,987
675
1,205

11
Inventories
Finished goods
Supplies and spare parts
Spare parts for mobile phone
network maintenance
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
2,430
2,711
4
266
280
22
42
Less allowance for obsolescence

and decline in value
Net
12
468
3,164
679
3,670
468
490
679
725
(645)
2,519
(805)
2,865
(438)
52
(645)
80
Consolidated
2014
2013
(in million Baht)
4
(4)
-
At 1 January
Invest in share capital
Share loss from investment in associate
At 31 December
On 9 June 2014, Super Broadband Network Company Limited (SBN), a subsidiary, has invested in
145,000 shares of Information Highway Co., Ltd. (IH) by Baht 25 per share, totaling Baht 3.6
million, representing 29% of ownership.
On 24 September 2014, Advanced Broadband Network Company Limited (ABN), a subsidiary, has
purchased investment in IH from SBN by 145,000 shares of Baht 25 per share, totaling Baht 3.6
million, representing 29% of ownership.
42

Investments in associate as at 31 December 2014 and 2013, and dividend income from those investments for the years then ended were as follows:
Ownership interest
2014
2013
(%)

Paid-up capital
2014
2013
2014
Cost
Equity
2013
2014
(in million Baht)
Dividend income
2014
2013
2013
Associate
29
12
12
The following summarised financial information on equity-accounted investees is not adjusted for the percentage ownership held by the Group:
2014
Associate
Reporting
date
Ownership
interest
(%)
Current
assets
Noncurrent
assets
Total
assets
Current
liabilities
31 December
29
66
126
192
198
43
Noncurrent
Total
liabilities
liabilities
(in million Baht)
198
Total
revenues
Total
expenses
19
Profit/
(loss)
(19)

13
Separate
2014
2013
(in million Baht)
7,912
6,993
1,135
(216)
7,912
7,912
At 1 January
Increase in share capital
Allowance for impairment
At 31 December
Liquidation of a subsidiary
At the Board of Directors meeting held on 4 August 2014, the Board approved liquidation of
Advanced Internet Revolution Co., Ltd. (AIR), a subsidiary, and the transfer of its internet business
to Super Broadband Network Co., Ltd. (SBN), a subsidiary, and does not have any plans to continue
its operation. AIR has registered the dissolution with the Ministry of Commerce on 8 September 2014.
Addition in share capital of a subsidiary
On 19 September 2013, Advanced Wireless Network Co., Ltd. (AWN), a subsidiary, registered the
increase in the share capital from Baht 350 million (3,500,000 ordinary shares, Baht 100 par value) to
Baht 1,350 million (13,500,000 ordinary shares, Baht 100 par value) and premium on ordinary shares
of Baht 135 million with the Ministry of Commerce. The purpose of the capital increase is for future
investment. The Company paid for the increased shares by Baht 113.5 per share, totalling Baht 1,135
million and holds 99.99% of the issued share capital.
Impairment in investment
The Company recorded a loss from impairment for the year ended 31 December 2013 of Baht 216
million from the review of the carrying amount of investment in subsidiary, Digital Phone Co., Ltd.
(DPC), by comparing net book value with the recoverable net present value of future cash
generation assuming that DPC provides a continuing services to the subscribers under a temporary
customer protection measure (see note 1.3 to the financial statement) based on value-in-use calculation
and using a pre-tax discount rate of 8.9%.
44

Investments in subsidiaries as at 31 December 2014 and 2013, and dividend income from those investments for the years then ended were as follows:
Ownership interest
2014
2013
(%)
Paid-up capital
2014
2013
Cost
2014

Impairment
2013
2014
2013
(in million Baht)
At cost - net
2014
2013
Dividend income
2014
2013
Subsidiaries
Advanced Internet Revolution Co., Ltd.
99.99
99.99
240
240
600
600
(335)
265
265
Advanced Contact Center Co., Ltd.
99.99
99.99
272
272
811
811
811
811
27
Digital Phone Co., Ltd.
98.55
98.55
3,655
3,655
12,493
12,493
Advanced Magic Card Co., Ltd.
99.99
99.99
250
250
250
250
4,263
4,263
250
250
Advanced Mpay Co., Ltd.
99.99
99.99
300
300
336
336
336
336
547
630
AIN GlobalComm Co., Ltd.
99.99
99.99
100
100
100
100
100
100
1,297
1,460
99.99
99.99
1,350
1,350
1,485
Super Broadband Network Co., Ltd.
99.99
99.99
300
300
300
1,485
1,485
1,485
15,873
1,904
300
300
300
2,660
1,785
Wireless Device Supply Co., Ltd.
99.99
99.99
50
50
50
50
50
50
607
860
Fax Lite Co., Ltd.
99.98
99.97
683
320
(8,230)
(335)
(8,230)
MIMO Tech Co., Ltd.
99.99
99.99
50
50
50
50
50
50
1,181
1,230
Advanced Broadband Network Co., Ltd.
99.98
99.97
16,477
16,477
7,912
7,912
22,848
8,216
Total
45
(8,565)
(8,565)

14
Land
Cost
At 1 January 2013
Additions
Transfers and reclassify
Disposals
At 31 December 2013 and
1 January 2014
Additions
Disposals
At 31 December 2014
Depreciation and impairment losses
At 1 January 2013
Depreciation charge for the year
Disposals
1 January 2014
Disposals
Impairment losses
At 31 December 2014
Building
and building
improvements
139
36
-
500
-
175
349
524
Leasehold
building
improvements

Furniture,
Comfixtures
munication
Computer,
tools and
and office
equipment
equipment
equipment
for rental
(in million Baht)
Vehicles
Assets under
construction
and
installation
Total
796
169
(13)
39,344
14,786
4,013
(1,612)
1,520
69
(28)
8
-
255
36
(54)
2,932
12,760
(4,013)
-
45,494
27,856
(1,707)
500
(7)
493
952
289
(114)
1,127
56,531
22,419
7,130
(2,700)
83,380
1,561
87
(33)
1,615
8
8
237
52
(50)
239
11,679
7,897
(7,130)
(19)
12,427
71,643
31,093
(2,923)
99,813
(375)
(26)
-
(585)
(82)
10
(31,785)
(2,858)
1,588
(1,420)
(38)
24
(8)
-
(154)
(33)
48
(27)
-
(34,354)
(3,037)
1,670
(401)
(21)
5
(417)
(657)
(108)
3
93
(669)
(33,055)
(6,015)
2,657
(4)
(36,417)
(1,434)
(46)
39
(1,441)
(8)
(8)
(139)
(35)
43
(131)
(27)
(27)
(35,721)
(6,225)
3
2,837
(4)
(39,110)
46

Land
Net book value
At 1 January 2013
Owned assets
Assets under finance leases
1 January 2014
Owned assets
At 31 December 2014
Owned assets
Building
and building
improvements
Leasehold
building
improvements

ComFurniture,
Computer,
fixtures
munication
tools and
and office
equipment
equipment
equipment
for rental
(in million Baht)
Vehicles
Assets under
construction
and
installation
Total
139
139
125
125
211
211
7,559
7,559
100
100
13
88
101
2,905
2,905
11,052
88
11,140
175
175
99
99
295
295
23,476
23,476
127
127
9
89
98
11,652
11,652
35,833
89
35,922
524
524
76
76
458
458
46,963
46,963
174
174
8
100
108
12,400
12,400
60,603
100
60,703
The gross amount of the Groups fully depreciated property, plant and equipment that was still in use as at 31 December 2014 amounted to Baht 25,179 million
(2013: Baht 25,713 million).
47

Building
and building
improvements
Cost
At 1 January 2013
Additions
Disposals
At 31 December 2013
and 1 January 2014
Additions
Disposals
At 31 December 2014
Depreciation
At 1 January 2013
Disposals
At 31 December 2013
and 1 January 2014
Disposals
At 31 December 2014

Furniture,
Computer,
fixtures
tools and
and office
equipment
equipment
Vehicles
(in million Baht)
Leasehold
building
improvements
Assets under
construction
and
installation
Total
412
-
663
139
(12)
26,130
213
1
(1,607)
1,351
41
(30)
220
30
(54)
117
114
(1)
(4)
28,893
537
(1,707)
412
(40)
372
790
183
(400)
573
24,737
176
(3,015)
21,898
1,362
31
(192)
1,201
196
24
(68)
152
226
(122)
(9)
95
27,723
292
(3,724)
24,291
(349)
(20)
-
(523)
(57)
8
(24,895)
(475)
1,563
(1,277)
(27)
27
(137)
(28)
47
(27,181)
(607)
1,645
(369)
(15)
38
(346)
(572)
(68)
3
216
(421)
(23,807)
(361)
2,974
(21,194)
(1,277)
(26)
163
(1,140)
(118)
(26)
57
(87)
(26,143)
(496)
3
3,448
(23,188)
48

Building
and building
improvements
Net book value
At 1 January 2013
Owned assets
At 31 December 2013 and 1 January 2014
Owned assets
At 31 December 2014
Owned assets
Leasehold
building
improvements

Furniture,
Computer,
fixtures
tools and
and office
equipment
equipment
Vehicles
(in million Baht)
Assets under
construction
and
installation
Total
63
63
140
140
1,235
1,235
74
74
11
72
83
117
117
1,640
72
1,712
43
43
218
218
930
930
85
85
8
70
78
226
226
1,510
70
1,580
26
26
152
152
704
704
61
61
7
58
65
95
95
1,045
58
1,103
The gross amount of the Companys fully depreciated plant and equipment that was still in use as at 31 December 2014 amounted to Baht 21,564 million (2013:
Baht 24,099 million).
49

15
Intangible assets under the Agreements for operations
Cost of
mobile
phone
networks
Cost
At 1 January 2013
Additions
Transfers
Disposal and write-off
Transfer to CAT
1 January 2014
Additions
At 31 December 2014
Amortisation and impairment losses
At 1 January 2013
Amortisation charge for the year
Transfer to CAT
1 January 2014
Impairment losses
Transfer
At 31 December 2014
Net book value
At 1 January 2013
1 January 2014
At 31 December 2014

Advance
payment
and assets
under
construction
Cost of
of mobile
datanet
phone
tools and
equipment
networks
(in million Baht)
Total
192,124
3,766
427
(14,294)
(14,605)
1,548
-
2,761
(427)
-
196,433
3,766
(14,294)
(14,605)
167,418
600
1,402
(23,997)
145,423
1,548
(300)
1,248
2,334
(1,699)
635
171,300
600
(297)
(24,297)
147,306
(165,738)
(11,876)
13,748
14,605
(1,538)
(1)
-
(167,276)
(11,877)
13,748
14,605
(149,261)
(11,308)
23,186
63
(137,320)
(1,539)
(1)
(8)
300
(1,248)
(150,800)
(11,309)
(8)
23,486
63
(138,568)
26,386
10
2,761
29,157
18,157
8,103
9
-
2,334
635
20,500
8,738
The gross amount of the Groups fully amortised assets under the Agreements for operations that was
still in use as at 31 December 2014 amounted to Baht 70,907 million (2013: Baht 95,553 million).
50

Advance
payment
and assets
under
Cost of
construction
mobile
of mobile
phone
phone
networks
networks
Total
(in million Baht)
Cost
At 1 January 2013
Additions
Transfers
Disposals
Additions
Disposals
At 31 December 2014
177,889
3,638
427
(14,536)
167,418
600
1,402
(23,997)
145,423
Amortisation
At 1 January 2013
Disposals
Disposals
At 31 December 2014
(152,191)
(11,064)
13,994
(149,261)
(11,308)
63
23,186
(137,320)
Net book value

At 1 January 2013
At 31 December 2014
25,698
18,157
8,103
2,761
(427)
2,334
(1,699)
635
2,761
2,334
635
180,650
3,638
(14,536)
169,752
600
(297)
(23,997)
146,058
(152,191)
(11,064)
13,994
(149,261)
(11,308)
63
23,186
(137,320)
28,459
20,491
8,738
The gross amount of the Companys fully amortised assets under the Agreement for operations that
was still in use as at 31 December 2014 amounted to Baht 69,861 million (2013: Baht 80,947
million).
Part of assets under the Agreement for operations is 13,198 towers that the Company has transferred
to TOT Public Company Limited and is 152 towers and 115 containers that Digital Phone Company
Limited, a subsidiary, has transferred to CAT Public Company Limited. The Group is of the opinion
that the Tower and the Container are not the tools and equipment specified under the Agreement.
Therefore, the Group shall not be obligated to transfer the Tower and the Container. The Group has
also submitted the disputes to the Dispute Reconciliation Office, Justice Court Office requesting the
Arbitral Tribunal to give an award that the said assets are not the property as stipulated in the
Agreement in July 2014.
51

16
Goodwill
Consolidated
financial
statements
(in million Baht)
Cost
At 1 January 2013
At 31 December 2014
14,352
14,352
14,352
Amortisation and impairment losses

At 1 January 2013
At 31 December 2014
(14,317)
(14,317)
(14,317)
Net book value

At 1 January 2013
At 31 December 2014
17
35
35
35

Consolidated
financial
statements
(in million Baht)
Cost
At 1 January 2013
At 31 December 2014
14,644
14,644
14,644
Amortisation
At 1 January 2013
At 31 December 2014
(67)
(976)
(1,043)
(976)
(2,019)
Net book value

At 1 January 2013
At 31 December 2014
14,577
13,601
12,625
On 16 October 2012, Advanced Wireless Network Co., Ltd. (AWN), a subsidiary, was the auction
winner for 2.1GHz license (3G) at the bid price of Baht 14,625 million. On 7 December 2012, AWN
was officially granted the license to operate 2.1GHz for 15 years from the National Broadcasting and
Telecommunications Commission (NBTC). According to the auction terms and conditions, AWN
paid 50% of the fee plus VAT, totaling Baht 7,824 million on 19 October 2012 and submitted bank
guarantee to pay the remaining fee to the NBTC. Another 25% was paid in the second year, and the
remainder will be paid in the third year. As at 31 December 2014, the Group has recognised the
remaining fee of Baht 3,656 million (excluding VAT) as the spectrum license payable in the
consolidated financial statement (2013: Baht 7,313 million).
52

18

Assets
under
Operation
Software
installation
right
licences
(in million Baht)
Cost
At 1 January 2013
Additions
Disposals
Additions
Disposals
At 31 December 2014
6,993
(6,993)
-
5,581
680
10
(51)
6,220
713
95
(2,410)
4,618
Amortisation
At 1 January 2013
Disposals
Disposals
At 31 December 2014
(6,671)
(322)
6,993
-
(3,870)
(329)
49
(4,150)
(412)
(2,410)
2,152
Net book value

At 1 January 2013
At 31 December 2014
322
-
53
1,711
2,070
2,466
118
(10)
108
25
(95)
38
108
38
Total
12,574
798
(7,044)
6,328
738
(2,410)
4,656
(10,541)
(651)
7,042
(4,150)
(412)
(2,410)
2,152
2,033
2,178
2,504

Separate
financial
statements
Software
licences
(in million Baht)
Cost
At 1 January 2013
Additions
Disposals
Additions
Disposals
At 31 December 2014
2,937
5
(49)
2,893
1
(2,420)
474
Amortisation
At 1 January 2013
Disposals
Disposals
At 31 December 2014
(2,736)
(47)
49
(2,734)
(47)
2,419
(362)
Net book value

At 1 January 2013
At 31 December 2014
19
201
159
112
Deferred tax
Deferred tax assets and liabilities as at 31 December were as follows:
Deferred tax assets

Deferred tax liabilities
Net
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
1,509
3,667
735
3,327
(67)
(110)
(67)
(110)
1,442
3,557
668
3,217
54

Movements in total deferred tax assets and liabilities during the year were as follows:
At 1
January
2013
Deferred tax assets
Accounts receivable (doubtful accounts)
Inventories (allowance for obsolete and decline
in value)
Assets under the Agreement for operation
(amortisation difference)
(income recognised difference)
Others
Total
Prepaid expense under the Agreement
for operations (expense recognised difference)
Accelerated tax (amortisation difference)
Others
Total
129
(4)
125
61
186
175
(25)
150
(36)
114
4,242
(1,577)
2,665
(2,310)
355
385
250
290
5,471
(65)
27
(160)
(1,804)
320
277
130
3,667
74
25
28
(2,158)
394
302
158
1,509
(87)
(6)
(64)
(157)
Net

Charged/
Charged/
(credited)
(credited)
At 31
At 31
to profit December to profit
December
or loss
or loss
2013
2014
(note 34)
(note 34)
(in million Baht)
5,314
37
6
4
47
(1,757)
(50)
(60)
(110)
3,557
23
20
43
(2,115)
(27)
(40)
(67)
1,442

At 1
January
2013
Deferred tax assets
Accounts receivable (doubtful accounts)
Inventories (allowance for obsolete
and decline in value)
Assets under the Agreement for operation
(amortisation difference)
(income recognised difference)
Others
Total
Prepaid expense under the Agreement
for operations (expense recognised difference)
Others
Total
At 31
December
2014
(67)
55
(14)
41
131
(2)
129
(41)
88
4,032
(1,367)
2,665
(2,310)
355
385
166
146
4,982
(158)
(8)
(53)
(1,655)
227
158
93
3,327
(105)
(76)
(46)
(2,592)
122
82
47
735
4,831
55
Charged/
(credited)
At 31
December to profit
or loss
2013
(note 34)
(in million Baht)
122
(87)
(64)
(151)
Net
Charged/
(credited)
to profit
or loss
(note 34)
37
4
41
(1,614)
(50)
(60)
(110)
3,217
23
20
43
(2,549)
(27)
(40)
(67)
668

Deferred tax assets arising from significant temporary differences and unused tax losses that have not
been recognised in the financial statements as at 31 December 2014 and 2013 were as follows:
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
375
337
1,713
1,713
754
102
664
-
Tax losses
Impairment loss on investment
Accrued expense of the Agreements for
operations
Others
Total
238
63
1,430
238
77
754
2,377
1,713
Deferred tax assets have not been recognised in respect of these items because it is not probable that
future taxable profit will be available against which the Group can utilise the benefits therefrom.
20
Note
Current
Short-term loans from financial
institutions
Short-term loan from related
parties
Current portion of long-term
borrowings
Current portion of long-term
debentures
Current portion of finance lease
liabilities
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
Non-current
Long-term borrowings, net
Long-term debentures, net
Finance lease liabilities
Total
56
4,000
4,000
4,400
2,540
2,775
2,540
2,775
2,500
2,500
32
2,572
28
9,303
21
2,561
23
13,698
17,819
16,575
84
34,478
15,279
76
15,355
12,819
50
12,869
15,279
60
15,339
37,050
24,658
15,430
29,037

The periods to maturity of interest-bearing liabilities, excluding finance lease liabilities, as at 31
December were as follows:
Within one year

After one year but within five years
After five years
Total
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
2,540
9,275
2,540
13,675
22,243
15,279
12,819
15,279
12,151
36,934
24,554
15,359
28,954
57

As at 31 December, the details of long-term loans are summarised as follows:
Interest rate
(per annum)
Term of
interest
payment
USD 70.00
LIBOR plus margin
Semi-annual
Entirely redeemed in 2014
2,306
2,306
USD 49.75
USD 63.97
LIBOR plus margin
Semi-annual
20 equal installments from

2008 to 2018
1,647
2,108
1,647
2,108
USD 125.00
USD 125.00
LIBOR plus margin
Semi-annual
2 equal installments in 2015

and 2016
4,139
4,118
4,139
4,118
USD 85.00
USD 85.00
LIBOR plus margin
Semi-annual
4 equal installments in 2016

and 2017
2,815
2,801
2,815
2,801
USD 85.00
USD 85.00
LIBOR plus margin
Semi-annual
2,815
2,801
2,815
2,801
Fixed interest rate as

stipulated in the
agreement
Semi-annual
4,000
4,000
4,000
4,000
Semi-annual
4 equal installments from

2019 to 2021
5,000
20,416
(57)
20,359
18,134
(80)
18,054
15,416
(57)
15,359
18,134
(80)
18,054
Outstanding loan
in foreign currency
2014
2013
(in million)
Principal payment term
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
The Company
-

-
Fixed interest rate as

stipulated in the
agreement
Total loans
Less transaction cost balance at 31 December
Net
58

As at 31 December, the Groups long-term debentures represent unsubordinated and unsecured debentures with a par value of Baht 1,000 each and are detailed
as follows:
Issue date
The Company
23 January 2009
No. of
units
(Million)
Amount
(Million
Baht)
2.50
2,500

11 April 2014
0.39
397
Interest rate
(per annum)
4.00% for the first
two year, 5.00% for
the third and fourth
year and 6.00% for
the last years
Term of
interest
payment
Consolidated
Separate
Principal payment financial statements
2014
2013
2014
2013
term
(in million Baht)
Quarterly
Entirely
redeemed on 23
January 2014
2,500
2,500
Fixed interest rate

of 3.39%
Semi-annual
Entirely
redeemed on 11
April 2017
Entirely
redeemed on 11
April 2019
Entirely
redeemed on 11
April 2021
Entirely
redeemed on 11
April 2024
397
7,789
1,776
6,638
2,500
2,500
2,500
2,500
11 April 2014
7.79
7,789
Fixed interest rate

of 4.17%
Semi-annual
11 April 2014
1.78
1,776
Fixed interest rate

of 4.56%
Semi-annual
11 April 2014
6.64
6,638
Fixed interest rate

of 4.94%
Semi-annual
Total debentures
Less bond issuing cost balance at 31 December
Net
16,600
(25)
16,575
59

Under the terms and conditions of the long-term borrowings and debentures, the Company has to
comply with certain restrictions and maintain certain financial ratios.
As at 31 December 2014, the Group and the Company have no undrawn committed loans. (2013: no
undrawn committed loans).
The carrying amounts and fair values of long-term debentures (gross of issue costs) as at 31 December
are as follows:
Carrying amount
Fair values*
2014
2013
2014
2013
(in million Baht)
16,600
2,500
17,734
2,505

Carrying amount
Fair values*
2014
2013
2014
2013
(in million Baht)
2,500
2,505
* Fair values for traded debentures have been determined based on quoted selling prices from The
Thai Bond Market Association at the close of the business on the reporting date.
Movement during the years ended 31 December of interest-bearing liabilities was as follows:
At 1 January
Additions
Borrowing cost
Repayments
Terminate cost
Unrealised loss on foreign exchange
Amortisation
At 31 December
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
24,658
20,350
29,037
20,333
24,658
18,353
17,224
23,843
(29)
(56)
(56)
(12,406)
(15,015)
(30,996)
(16,110)
(10)
(7)
(10)
(6)
152
1,015
152
1,015
27
18
23
18
37,050
24,658
15,430
29,037
The effective weighted interest rates as at 31 December were as follows:
Finance lease liabilities
Consolidated
Separate
2014
2013
2014
2013
(% per annum)
3.50
3.34
3.23
3.34
4.50
4.75
4.75
4.86
5.05
4.87
5.06
60

21
Note
Related parties
Other parties
Total
22
Other payables
Note
Accrued expenses
Value added tax payable
Withholding tax payable
Others
Total
23
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
51
63
907
501
11,852
11,655
379
1,120
11,903
11,718
1,286
1,621
5
5
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
9,997
7,759
2,063
3,413
244
349
136
326
330
316
38
100
618
1,112
587
1,086
11,189
9,536
2,824
4,925

The Group and the Company had an employee benefit obligation based on the requirement of Thai
Labour Protection Act B.E. 2541 (1998) to provide retirement benefits to employees based on
pensionable remuneration and length of service and long - term service awards.
The statement of financial position obligation was determined as follows:
Present value of obligations
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
1,500
1,361
406
768
Movement in the present value of the employee benefit obligations
Employee benefit obligations at 1 January

Benefits paid
Current service costs and interest
Transfer out
Employee benefit obligations at 31 December
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
1,361
1,223
768
810
(29)
(16)
(25)
(15)
168
154
43
83
(380)
(110)
1,500
1,361
406
768
61

Expense recognised in profit or loss
Current service costs

Interest on obligation
Total
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
115
107
28
56
53
47
15
27
168
154
43
83
The Group/Company recognised the expense in the following line items in the statement of income:
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
Cost of rendering of services and
equipment rental
Administrative expenses
Management benefit expenses
Finance costs
Total
8
105
2
53
168
10
95
2
47
154
26
2
15
43
54
2
27
83
Actuarial losses recognised in other comprehensive income:

Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
Included in retained earnings :
At 1 January
At 31 December
723
723
723
723
417
417
417
417
Principal actuarial assumptions at the reporting date (expressed as weighted averages):

Consolidated
2014
2013
Separate
2014
2013
(%)
Discount rate
Future salary increases
3.9
8
3.9
8
3.9
8
3.9
8
Assumptions regarding future mortality are based on published statistics and mortality tables set as
100% of the 2008 Thailand Mortality rates (TMO08).
62

24
Share capital
Par value
per share
(in Baht)
2014
Number
2013
Baht
Number
(million share / million Baht)
Baht
Authorised
At 1 January
- ordinary shares
At 31 December
- ordinary shares
4,997
4,997
4,997
4,997
4,997
4,997
4,997
4,997
Issued and paid-up

At 1 January
- ordinary shares
At 31 December
- ordinary shares
2,973
2,973
2,973
2,973
2,973
2,973
2,973
2,973
As at 31 December 2014 and 2013, the total issued number of ordinary shares is 2,973 million shares
with a par value of Baht 1 per share. All issued shares are fully paid.
The holders of ordinary shares are entitled to receive dividends as declared from time to time, and are
entitled to one vote per share at meetings of the Company.
Share premium
Section 51 of the Public Companies Act B.E. 2535 requires companies to set aside share subscription
monies received in excess of the par value of the shares issued to a reserve account (share premium).
Share premium is not available for dividend distribution.
25
Legal reserve
Section 116 of the Public Companies Act B.E. 2535 requires that a public company shall allocate not
less than 5% of its annual net profit, less any accumulated losses brought forward, to a reserve account
(legal reserve), until this account reaches an amount not less than 10% of the registered authorised
capital. The legal reserve is not available for dividend distribution.
63

26

Share-based payment
The performance share plan
Grant I
In March 2013, the Annual General Meeting of shareholders No.1/2013 approved to issue warrants to
purchase the ordinary shares of the Company. The warrants are offered to employees of the Company
and its subsidiaries, including the board of directors of the Company, who are qualified to the
Performance share plan (Project). The major information is listed below:
Approved date:
Number of warrants offered:
Exercise price:
Number of reserved shares:
Term of the Project:
Offered price per unit:
Exercise ratio:
27 March 2013
405,800 Units
206.672 Baht/share
405,800 Shares
5 years from the date of initial offer of the warrants
Baht 0 (zero Baht)
1 unit of warrant per 1 ordinary share
Grant II
In March 2014, the Annual General Meeting of shareholders No.1/2014 approved to issue warrants to
purchase the ordinary shares of the Company. The warrants are offered to employees of the Company
and its subsidiaries, including the board of directors of the Company, who are qualified to the
Performance share plan (Project). The major information is listed below:
Approved date:
Number of warrants offered:
Exercise price:
Number of reserved shares:
Term of the Project:
Offered price per unit:
Exercise ratio:
Offer period:
26 March 2014
680,000 Units
211.816 Baht/share
680,000 Shares
5 years from the date of initial offer of the warrants
Baht 0 (zero Baht)
1 unit of warrant per 1 ordinary share
Within one year from the date on which the issuance and
offer of the warrant under the program is approved by the
2014 annual general meeting of shareholders
64

Movements in the number of outstanding warrants are as follows:
Transaction during the period
At 1 January
2014
ESOP Grant I
- Directors
- Employees
ESOP Grant II
- Directors
- Employees
Total
Issued
Exercised
(in units)
Forfeited
At 31 December
2014
19,824
352,476
372,300
19,824
352,476
372,300
372,300
29,816
611,768
641,584
641,584
29,816
611,768
641,584
1,013,884
Fair value measurement

The Group measured the expense of the Project by reference to the fair value of the equity instrument
granted at the grant date using the Monte Carlo Simulation technique. The major assumptions are as
below:
Grant I
Weighted average fair value at the grant date
Share price at the grant date
Exercise price
Expected volatility
Expected dividend
Risk-free interest rate
183.499 Baht/share
262.000 Baht/share
206.672 Baht/share
23.51%
4.16%
3.07%
Grant II
Weighted average fair value at the grant date
Share price at the grant date
Exercise price
Expected volatility
Expected dividend
Risk-free interest rate
101.617 Baht/share
240.000 Baht/share
211.816 Baht/share
25.15%
5.00%
3.08%
For the year ended 31 December 2014, the Group/Company recognised share-based payment expense
at Baht 19 million and Baht 19 million, respectively, on the consolidated and separate financial
statements (2013: Baht 7 million and Baht 7 million, respectively).
Accounting Policy
The Group measured the expense of the Project by reference to the fair value of the equity instrument
granted at the grant date.
The expense of the Project is charged to the profit or loss from operation corresponding to the increase
in Reserve for share-based payment in shareholders equity over the periods in which the service
conditions are fulfilled.
65

Unrealised gain on dilution of investment
The unrealised gain on dilution of investment comprises the cumulative net change in portion of
investment until the investment is sold or otherwise disposed of.
Fair value changes in available-for-sale investments
The fair value changes in available-for-sale investments account within equity comprises the
cumulative net change in the fair value of available-for-sale investments until the investments are
derecognised or impaired.
27
Segment information
The Group/Company has three reportable segments, as described below, which are the
Group/Companys strategic divisions. The strategic divisions offer different products and services, and
are managed separately because they require different technology and marketing strategies. For each of
the strategic divisions, the chief operating decision maker (CODM) reviews internal management
reports on at least a quarterly basis. The following summary describes the operations in each of the
Group/Companys reportable segments.
Segment 1
Segment 2
Segment 3
Mobile phone and call center services

Mobile phone sales
Datanet and broadband services
Information regarding the results of each reportable segment is included below. Performance is
measured based on segment profit before tax, as included in the internal management reports that are
reviewed by the Groups/Companys CODM. Segment profit before tax is used to measure
performance as management believes that such information is the most relevant in evaluating the
results of certain segments relative to other entities that operate within these industries.
66

Information about reportable segments:
Mobile phone and
call center services
2014
2013
Datanet and broadband

Mobile phone sales
services
2014
2013
2014
2013
(in million Baht)
External revenue
125,061
130,700
Investment income
Finance cost
Depreciation and amortisation
343
(1,523)
(18,716)
515
(1,001)
(16,427)
47,670
45,593
(1,545)
13,044
116,129
31,486
75,880
11,154
102,597
31,565
63,854
1,588
7,095
3
3,155
Segment profit (loss) before income tax

Material items of expense
Segment assets
Capital expenditure
Segment liabilities
23,414
19
(3)
(7)
19,114
24
(8)
734
346
7,162
2
1,871
Total reportable segments

2014
2013
854
764
149,329
150,578
8
(1)
(199)
9
(1)
(106)
370
(1,527)
(18,922)
548
(1,002)
(16,541)
(42)
(89)
46,083
46,238
14,906
126,351
32,433
79,486
11,757
112,026
32,419
66,133
274
3,127
944
451
257
2,267
852
408
Geographical segments
The Group/Company is managed and operates principally in Thailand. There are no material revenues derived from, or assets located in, foreign countries.
67

28
Revenue of the Company under the NBTCs regulation

Revenue from rendering of services and equipment rentals of the Company for the year ended
31 December 2014 and 2013 was classified as follows:
Separate
2014
2013
(in million Baht)
1
1
62,029
106,023
62,030
106,024
Internet License Type 1

Other service income
Total
29
Investment income
Note
Dividend income
Subsidiaries
Other
Interest income
Related parties
Associate
Financial institutions
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
5,13
10
10
22,848
5
22,853
8,216
8,216
5
5
2
358
360
548
548
1,220
59
1,279
1,102
226
1,328
370
548
24,132
9,544
Total
30
Note
Bad debt recovery
Management income
Others
Total
31
5
5
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
110
99
70
96
163
155
220
224
625
377
330
323
858
628
Provident Fund
The defined contribution plans comprise provident funds established by the Group/Company for its
employees. Membership to the funds is on a voluntary basis. Contributions are made monthly by the
employees at rates ranging from 3% to 7% of their basic salaries and by the Group/Company at rates
ranging from 3% to 7% of the employees basic salaries. The provident funds are registered with the
Ministry of Finance as juristic entities and are managed by a licensed Fund Manager.
68

32
Expenses by nature
The statements of income include an analysis of expenses by function. Significant expenses by nature
disclosed in accordance with the requirements of various TFRS were as follows:
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
Note
Depreciation of plant and
equipment
Amortisation of assets under
Agreements for operations
Amortisation of intangible assets
Doubtful accounts and bad debts
Marketing expenses
Staff cost
33
14
6,225
3,037
496
607
15
17,18
9
11,309
1,388
1,240
6,220
7,446
11,877
1,627
787
4,331
6,639
11,308
47
37
648
1,596
11,064
47
360
1,819
3,401
Finance costs
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
168
42
1
1
1
1,526
1,001
734
974
1,527
1,002
902
1,017
Note
Subsidaries
Related parties
Financial institutions
Total
5
5
69

34
Income tax expense

Income tax recognised in profit or loss
Note
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
Current tax expense

Current year
Adjustment for prior years
Deferred tax expense
Movements in temporary
differences
7,950
15
7,965
8,244
7
8,251
1,499
4
1,503
5,735
(3)
5,732
2,115
1,757
2,549
1,615
10,080
10,008
4,052
7,347
19
Total income tax expense

Reconciliation of effective tax rate

2014
2013
Rate
(in million
Rate
(in million
(%)
Baht)
(%)
Baht)
46,083
46,238

Income tax using the Thai corporation
tax rate
Income not subject to tax
Expenses not deductible for tax purposes
Adjustment for prior year
Effect from elimination with subsidiaries
Current year losses for which no deferred tax
asset was recognised
Written-off deferred tax asset
Total
20
22
Rate
(%)
Income tax using the Thai corporation
tax rate
Income not subject to tax
Expenses not deductible for tax purposes
Adjustment for prior year
Written-off deferred tax asset
Impairment loss from investment in a subsidiary
Total
70
20
10
9,217
(2)
155
15
(11)
42
664
10,080
20
22
9,248
173
7
12
282
286
10,008

2014
2013
(in million
Rate
(in million
Baht)
(%)
Baht)
38,918
43,995
7,784
(4,571)
171
4
664
4,052
20
17
8,799
(1,643)
151
(3)
43
7,347

Income tax reduction
Royal Decree No. 530 B.E. 2554 dated 21 December 2011 grants a reduction in the corporate income
tax rate for the three accounting periods 2012, 2013 and 2014; from 30% to 23% for the accounting
period 2012 which begins on or after 1 January 2012 and to 20% for the following two accounting
periods 2013 and 2014 which begin on or after 1 January 2013 and 2014, respectively. Royal Decree
No. 577 B.E. 2557 dated 10 November 2014 extends the reduction to 20% for the accounting period
2015 which begins on or after 1 January 2015.
The Group/Company has applied the reduced tax rate of 20% in measuring deferred tax assets and
liabilities as at 31 December 2014 and 2013 in accordance with the clarification issued by the FAP in
2012.
35
Earnings per share

Basic earnings per share
The calculation of basic earnings per share for the years ended 31 December 2014 and 2013 were
based on the profit for the years attributable to ordinary shareholders of the Company and the weighted
average number of ordinary shares outstanding during the years as follows:
Consolidated
Separate
2014
2013
2014
2013
(in million Baht / million shares)
Profit attributable to ordinary
shareholders of the Company
(basic)
Weighted average number of
ordinary shares outstanding (basic)
36,033
36,274
34,866
36,648
2,973
2,973
2,973
2,973
Earnings per share (basic) (in Baht)
12.12
12.20
11.73
12.33
Diluted earnings per share

The calculation of diluted earnings per share for the years ended 31 December 2014 and 2013 were
based on the profit for the years attributable to equity holders of the Company and the weighted
average number of ordinary shares outstanding during the years after adjusting for the effects of all
dilutive potential ordinary shares as follows:
Consolidated
Separate
2014
2013
2014
2013
(in million Baht / million shares)
Profit attributable to equity holders of
the Company (basic)
Profit attributable to equity holders
of the Company (diluted)
ordinary shares outstanding (basic)
Effect of share-based payment
ordinary shares outstanding (diluted)
Earnings per share (diluted) (in Baht)
36,033
36,274
34,866
36,648
36,033
36,274
34,866
36,648
2,973
-
2,973
-
2,973
-
2,973
-
2,973
2,973
2,973
2,973
12.12
12.20
11.73
12.33
71

36
Dividends
At the annual general meeting and the board of directors meeting of the company, resolutions were
passed to approve the dividend and interim dividend payment to the shareholders as follows:
The resolution of:
Date of meeting
The general shareholders

The board of directors
27 March 2013
7 August 2013
Dividend ratio
(Baht/share)
5.00
6.40
Total dividend
(in million Baht)
14,863
19,026
33,889
37
The resolution of:
Date of meeting
The general shareholders

The board of directors
26 March 2014
4 August 2014
Dividend ratio
(Baht/share)
5.75
6.04
Total dividend
(in million Baht)
17,095
17,957
35,052
Financial instruments
Financial risk management policies
Risk management is integral to the whole business of the Group/Company. The Group/Company has a
system of controls in place to create an acceptable balance between the cost of risks occurring and the
cost of managing the risks. The management continually monitors the Groups/Companys risk
management process to ensure that an appropriate balance between risk and control is achieved.
Capital management
The Group/Company aim to manage its capital structure to be stronger than industry peer and
commit to be investment grade rating. This will allow the Group/Company to retain superior
financial flexibility in order to capture future growth prospect. The Groups/Companys financial
flexibility means diversified source of capital, ease of funding, and appropriate cost of capital.
In an intermediate term, the Group/Company view that telecommunications industry in Thailand

will face another phase of technology change and hence new investment will be required. The
statement of financial position of the Group/Company is flexible to prepare the Group/Company
for such investment and the Group/Company aim to leverage on its gearing through debt
instrument.
Interest rate risk

Interest rate risk is the risk that future movements in market interest rates will affect the results of the
Groups/Companys operations and its cash flows because some of debt securities and loan interest
rates are floating interest rate. The Group/Company is primarily exposed to interest rate risk from its
borrowings (Note 20). The Group/Company mitigates this risk by ensuring that the majority of its debt
securities and borrowings are at fixed interest rates and uses derivative financial instruments,
principally interest rate swaps, to manage exposure to fluctuations in interest rates on specific debt
securities and borrowings.
72

Foreign currency risk
The Group/Company is exposed to foreign currency risk relating to expense and borrowings which are
denominated in foreign currencies. The Group/Company primarily utilises forward exchange contracts
with maturities of less than one year to hedge such financial liabilities denominated in foreign
currencies and swap and forward contracts to hedge long-term borrowings denominated in foreign
currencies. The forward exchange contracts entered into at the reporting date also relate to borrowings,
denominated in foreign currencies, for the subsequent period.
At 31 December, the Group and the Company were exposed to foreign currency risk in respect of
financial assets and liabilities denominated in the following currencies:
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
Assets
United States Dollars
Singapore Dollars
Euro Dollars
Liabilities
Japan Yen
Singapore Dollars
Euro Dollars
Australian Dollars
Pound sterling
397
38
39
474
833
2
835
160
49
15
224
371
1
372
(16,639)
(11)
(4)
(16,654)
(18,280)
(102)
(39)
(17)
(3)
(121)
(18,562)
(11,594)
(3)
(1)
(11,598)
(14,311)
(14)
(17)
(5)
(3)
(4)
(14,354)
10,499
484
(5,197)
12,780
865
(4,082)
10,499
209
(666)
12,780
865
(337)
Gross statement of financial

position exposure
Currency swaps
Currency forwards
Net exposure
73

As at 31 December swap and forward receivables (payables), net as follows:
Swap contracts:
Swap contracts receivable
Swap contracts payable**
Total swap contracts receivable/(payable)
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
11,221
(10,499)
722
13,333
(12,780)
553
11,221
(10,499)
722
13,333
(12,780)
553
471
(484)
(13)
801
(865)
(64)
197
(209)
(12)
801
(865)
(64)
11,692
(10,983)
14,134
(13,645)
11,418
(10,708)
14,134
(13,645)
Forward contracts:
Forward contracts receivable
Forward contracts payable**
Total forward contracts payable
Total swap and forward contracts:
Swap and forward contracts payable**
Total swap and forward contracts
receivable/(payable)
Current assets (liabilities)
Total current assets (liabilities)
Non-current assets (liabilities)
Swap and forward contracts payable
Total non-current assets (liabilities)
Total
709
489
710
489
141
(1)
140
(164)
(164)
141
141
(164)
(164)
569
569
709
741
(88)
653
489
569
569
710
741
(88)
653
489
The nominal amounts and fair values of swap and forward contracts as at 31 December are as follows:
Swap contracts
Forward contracts
Total

Nominal amounts**
Fair values*
2014
2013
2014
2013
(in million Baht)
10,499
12,780
10,945
13,153
484
865
477
817
10,983
13,645
11,422
13,970
Swap contracts
Forward contracts
Total

Nominal amounts**
Fair values*
2014
2013
2014
2013
(in million Baht)
10,499
12,780
10,945
13,153
209
865
200
817
10,708
13,645
11,145
13,970
*The fair value of swap and forward contracts is the adjusted value of the original contracts which the
Company entered with the commercial banks with the market price on the reporting date in order to
reflect the current value of the contracts.
**The nominal amount of swap and forward contracts is the value of the original contracts which the
Company entered with the commercial banks and must be repaid at the maturity date.
74

Credit risk
Credit risk is the potential financial loss resulting from the failure of a customer or a counterparty to
settle its financial and contractual obligations to the Group/Company as and when they fall due.
Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing
basis. Credit evaluations are performed on all customers requiring credit over a certain amount. At the
reporting date there were no significant concentrations of credit risk.
Liquidity surplus
Excess liquidity (defined as any excess cash after working capital and capital expenditures) after
investment in new growth areas and any debt/regulatory obligations/restructuring will be returned to
shareholders.
Determination of fair values
A number of the Groups/Companys accounting policies and disclosures require the determination of
fair value, for both financial and non-financial assets and liabilities. The fair value is the amount for
which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an
arms length transaction. Fair values have been determined for measurement and/or disclosure
purposes based on the following methods. When applicable, further information about the assumptions
made in determining fair values is disclosed in the notes specific to that asset or liability.
The Group/Company uses the following methods and assumptions in estimating the fair value of
financial instruments:
The fair value of accounts receivable and accounts payable - trade and others is taken to
approximate the carrying value.
The fair values of investments in equity and debt securities, which are held-to-maturity, are taken
to approximate the carrying value.
The fair value of loans to and loans from related is taken to approximate the carrying value because
most of these financial instruments bear interest at market rates.
The fair value of long-term borrowings is taken to approximate the carrying value because most of
these financial instruments bear interest at market rate.
75

38
Commitments with non-related parties

Consolidated
Separate
2014
2013
2014
2013
(in million)
Capital commitments
Contracted but not provided for
Intangible assets under the Agreement for
operations
Thai Baht
Japanese Yen
Property and equipment
Thai Baht
Japanese Yen
Euro
Service maintenance agreements
Thai Baht
Japanese Yen
69
3
-
453
8
33
69
3
-
453
8
33
18,765
314
97
-
15,166
268
411
1
30
-
117
-
1,651
16
12
1,043
19
11
607
6
10
372
11
11
Consolidated
Separate
2014
2013
2014
2013
(in million Baht)
Non-cancellable operating lease
Commitments
Within one year
After one year but within five years
After five years
Total
Other commitments
Forward and swap contracts
Bank guarantees:
- The Agreements for operation
- Spectrum license payable
- Others
Total
1,722
2,073
3,795
1,321
1,511
2
2,834
292
262
554
414
415
2
831
10,983
13,645
10,708
13,645
1,460
3,912
1,029
17,384
1,460
7,824
945
23,874
1,460
313
12,481
1,460
418
15,523
The Group has entered into lease and related service agreements for office space, cars, computers and
base station for periods ranging from 1 year to 15 years with options to renew.
76

39
Contingent liabilities
Pursuant to the letter dated 18 January 2013, the Revenue Department has challenged the Company and
Digital Phone Company Limited (DPC), a subsidiary, to pay surcharge of Baht 128 million and Baht
6 million, respectively, regarding the withholding tax on revenue sharing payment after excise tax
deduction by giving the opinion that the excise tax is a part of revenue sharing. Therefore, the
Company and DPC will be liable to pay the shortage of withholding tax amount of excise Tax which
came from the revenue sharing payment without excise tax deduction. The Company and DPC have
submitted the appeal to the Commission of Appeal. At present, the said cases are pending on the
consideration process of the Commission of Appeal.
40
Significant events, commercial disputes and litigation

The Company
1) The opinion of the Council of State relating to the amendments or supplements to the Agreement
for Operation
Pursuant to the letter of the Ministry of Information and Communication Technology to the Council of
State requesting opinion on whether the amendments or supplements to the agreement between TOT
Public Company Limited who is the Telephone Organization of Thailand at that time (TOT) and
Advanced Info Service Public Company Limited after the enforcement of the Act on Private
Participation in State Undertaking, B.E. 2535 are legitimately effected and in case those amendments
or supplements to the Agreement are not legitimately effected according to such Act, what guidelines
TOT should implement.
The Council of State was of the opinion by its Memorandum of the Council of State no. 291/2550 on
Enforcement of the Act on Private Participation in State Undertaking, B.E. 2535 (in the case of the
Agreement Permitting Undertaking of Cellular Mobile Telephone Services, the Agreement between
TOT Public Company Limited and Advanced Info Service Public Company Limited) that
* since TOT being the contracting party in this case acted on behalf of the State by virtue of the
authority and duty pursuant to Telephone Organization of Thailand Act, the executed Agreement thus
represents the agreement between the State and the private sector in order to authorise the private
sector to provide public services to the public on behalf of the State. The State therefore is obligated
to perform according to those stipulated in that Agreement.
However, since the amendments to the Agreement upon which the consultation is being sought were
not legitimately carried out according to the Act on Private Participation in State Undertaking, B.E.
2535 which was in force at the time of effecting those amendments because those amendments had not
been proposed for the consideration of the Coordination committee according to Section 22 and not
forwarded to the Cabinet, being the organ charged with the authority to approve of the amendments to
the Agreement pursuant to the Act as aforesaid, the amendments made to the Agreement with TOT as
the contracting party were therefore carried out without legal authority.
77

However, the procedures to amend the Agreement represent administrative juristic acts which are
capable of being separated from the amendments to the Agreement already effected and those
amendments to the Agreement are still in force so long as they are not rescinded or extinguished by
statute of limitation or by other causes. In case the Cabinet, vested with the authority under the law and
having considered the causes for the rescission, the impact, and the propriety on the basis of the States
and the public interest, is of the opinion that the illegitimate procedures have resulted in damage that
warrants rescinding the amendments to the Agreement already effected, the Cabinet may legitimately
rescind such amendments to the Agreement. However, if the Cabinet, upon having considered the
same, deems it justified, with regard to the States or the public interest and the continuity of providing
public services, the Cabinet may exercise its discretion to grant approval for the procedures to further
amend the Agreement, as appropriate, with the unit owning the project and the Coordination
committee pursuant to Section 22 being the parties to submit the facts, justifications, and opinion for
the consideration of the Cabinet.
*The above clauses in represent some parts of the Memorandum of the Council of State no.
291/2550. The full text Memorandum of the Council of State is available only in Thai language.
In addition, the Coordinating Committee according to Clause 22 has already submitted the opinion
regarding the amendments of the Agreement of the Company to the Minister of the Information and
Communications Technology.
2) The deduction of excise tax from the revenue sharing between the Company and TOT Public
Company Limited (TOT)
On 22 January 2008, TOT Public Company Limited (TOT) submitted a dispute no. black 9/2551 to
the Arbitration Institute, Dispute Reconciliation Office, Justice Court Office demanding the Company
to pay additional payment of revenue sharing under the Cellular Mobile Phone Contract in the amount
of Baht 31,463 million under the Cellular Mobile Phone Contract plus interest at the rate of 1.25
percent per month computing from the default date on 10 January 2007 until the full payment is made.
This amount is the same as an excise tax that the Company had delivered to Excise Department during
28 January 2003 to 26 February 2007 and deducted it from revenue sharing according to the resolution
of the Cabinet dated 11 February 2003. Thus, the Company has fully complied with the Cabinets
resolution dated 11 February 2003 and this practice is the same as other operators in mobile phone or
cellular radio telecommunication industries according to the resolution of the Cabinet. Moreover, TOT
had sent letter no. Tor Sor Tor. Bor Yor./843 dated 10 March 2003 stating that the Company has fully
complied with the Cabinets resolution and the Companys burden remains at the same percentage rate
as specified in the contract and the submission of the said excise tax return shall not affect the terms of
the contract.
On 20 May 2011, the Arbitral Tribunal has dismissed the case by giving the reason which can be
summarised that the Company was not in breach of the Agreement since the Company has completely
made the payment of the revenue sharing and all debt was therefore paid in full. Therefore, TOT has
no right to re-claim for the alleged deficit amount.
On 22 September 2011, TOT has submitted the case no. Black 1918/2554 to the Central
Administrative Court to revoke the Arbitral Tribunals award. Presently, the said case is pending on
the Central Administrative Court process.
78

3) Interconnection agreement in accordance with the announcement of National Telecommunication
Commission (NTC)
According to Telecommunication Business Operation Act B.E. 2544 and
National Telecommunication Commission (NTC) regarding the Use
Telecommunication Network B.E. 2549, the Company has entered into an
agreement with other operators approved by NTC and the effective period of
below:
Operators
1)
2)
3)
4)
5)
6)
7)
the announcement of
and Interconnect of
interconnection (IC)
the agreement is listed
Effective period
Total Access Communication PCL.

Truemove Company Limited
Digital Phone Company Limited
CAT Telecom Public Company Limited
Advanced Wireless Network Company Limited
dtac TriNet Company Limited
Real Future Co., Ltd
30 November 2006 onwards

16 January 2007 onwards
1 June 2009 onwards
7 April 2010 onwards
1 April 2013 onwards
1 July 2013 onwards
1 July 2013 onwards
On 31 August 2007, TOT Public Company Limited (TOT) has filed a lawsuit against NTC to the
Central Administrative Court to revoke the said announcement. On 15 September 2010, the Central
Administrative Court has dismissed the case which TOT filed to revoke the announcement of NTC
regarding the Use and Interconnect of Telecommunication Network B.E. 2549. TOT has appealed
such dismissal to the Supreme Administrative Court. On 4 February 2008 TOT sent a letter to the
Company informing that the Company should wait for the final judgment of the Court. Should the
Company undertake the IC agreements per the NTC announcement before the final judgment of the
Court, TOT shall not recognise the Companys related actions and the Company must be responsible
for such actions.
Having considered the said TOTs letter, related laws and the legal counsels opinion, the Companys
management is of the opinion that non-compliance by the Company with the IC agreements shall be
deemed violating the said NTC announcement. Therefore, the Company has decided to comply with
the IC agreements in line with the current legal provisions.
According to the Agreement to operate cellular mobile telephone service, the Company has to pay the
higher of stipulated annual minimum payment or the percentage of service revenues prior to deducting
expenses and taxes. However, the Company had to comply with the regulation while TOT would like
to wait for the final judgment of the Court. As a result, the Company anticipated entering into a
negotiation with TOT in relation to a calculation method of the revenue sharing. The Company
calculated the revenue sharing from the net IC revenue which is similar to other operators in the
telecommunication industry on a conservative basis. The revenue sharing amount to be paid to TOT is
subject to the final judgment of the Court in relation to revoking the announcement of NTC and a
negotiation between TOT and the Company. The Company will make adjustment in the financial
statement in the period when the issue has been agreed. The Companys management is certain that it
will not incur significant expense more than the revenue sharing amount which the Company has
recorded.
However, after having considered the letter from TOT, the relevant laws and the comments of the legal
consultant, the management of the Company is of the opinion that non-compliance with the above
Interconnection Agreement would be in conflict with the announcement of NTC regarding the Use and
Interconnect of Telecommunication Network. Therefore, the Company decided to comply with the
said Agreements which are in line with the legal provisions currently in force by issuing invoices to
collect the interconnection charge from the contractual parties.
79

On 30 December 2008, the Company has remitted the revenue sharing incurred from the
interconnection of the telecommunication network since February 2007 to June 2008 in the amount of
Baht 761 million based on the rate and calculation method of the Company to TOT. Later, the
Company and TOT had set up the negotiation committee to seek for the conclusion but it could not be
done as TOT required the Company to pay revenue sharing calculated on gross interconnection
charges received by the Company at the rate specified in the Agreement without deduction of
interconnection charges which the Company has to pay to other operators. Thus, on 26 January 2011,
TOT sent a letter demanding the Company to pay the revenue sharing on the interconnection charges
of the Agreement for operations year 17th - 20th in the amount of Baht 17,803 million plus interest at
the rate of 1.25% per month. But the Company disagreed and sent a letter opposing the said claim to
TOT and the Company has submitted the dispute to the Dispute Reconciliation Office, Arbitration
Institute ref. no. Black 19/2554 on 9 March 2011 requesting the Arbitral Tribunal to give an award
that TOT has no right to claim for such revenue sharing.
On 29 July 2014, TOT has submitted a dispute no. 55/2557 demanding the Company to pay additional
payment for the revenue sharing on the interconnection charges of the operation years 21 st - 22nd in the
amount of Baht 9,984 million plus interest at 1.25% per month on its outstanding and computing from
the default date until the full payment is made. In addition, TOT has requested this case to be under
the same consideration with the case no. Black 19/2554 to the Arbitral Tribunal. At present, the said
disputes are pending on the Arbitration process.
4) Obligations of the bank guarantees in connection with the Agreement for Operations
According to the Agreement, the Company has the duties to deliver the bank guarantees to TOT
Public Company Limited (TOT) to secure the payment of the minimum revenue sharing for each
operation year and shall recover the bank guarantee of the operation year back.
TOT did not return the bank guarantees which have secured the payment of the minimum revenue
sharing for the operation year 17th - 21st for a total value of Baht 7,007 million by claiming that the
Company had not completely paid the revenue sharing due to the deduction of the revenue sharing for
the Excise Tax and the deduction of the Interconnection Charges where the disputes of which have
been pending the consideration of the Arbitral Tribunal.
On 11 May 2011 and on 5 October 2012, the Company has submitted the disputes to the Office of
Dispute Resolution, Arbitration Institute, case no. Black 40/2554 and 119/2555 requesting the Arbitral
Tribunal to award an order to TOT to return the bank guarantees to the Company because the
Company has completely paid the revenue sharing for each operation year and has correctly and fully
complied with the law and the relating Agreements in all respects.
On 10 February 2014, the Arbitral Tribunal has given the arbitration award to order TOT to return the
bank guarantees for the operation year 17th - 21st to the Company. On 16 May 2014, TOT has
submitted the case no. Black 660/2557 to the Central Administrative Court to revoke the Arbitral
Tribunals award.
On 19 May 2014, the Company has submitted the case no. Black 666/2557 to the Central
Administrative Court requesting TOT to return the bank guarantees for the 17 th - 21st operation year to
the Company according to the arbitration award and pay the bank guarantees fee of Baht 6.65 million
which had been paid by the Company to the banks as well as interest at 7.5% per annum computing
from the date that Company paid to the banks. Currently, this black case is in the Central
Administrative Court procedure.
80

5) 900 MHz subscribers migration to 3G 2100 MHz
On 25 September 2014, TOT Public Company Limited (TOT) has submitted a dispute no. Black
80/2557 to the Arbitration Institute demanding the Company to pay compensation from the 900 MHz
subscribers porting to 3G 2100 MHz provided by its subsidiary in the amount of Baht 9,126 million
plus interest at 7.5% per annum from 25 September 2014 until the full payment is made.
Currently, the case is in the Arbitration process. The Companys management believes that the
Company has correctly and fully complied with the related conditions of the Agreement in all respects
then the outcome of the said dispute shall be settled favourably and has no considerable impact on the
financial statements of the Company.
Digital Phone Company Limited (DPC)
1) The deduction of excise tax from the revenue sharing between DPC and CAT Telecom Public
Company Limited (CAT)
On 9 January 2008, CAT Telecom Public Company Limited (CAT) submitted a dispute to the case
no. black 3/2551 to the Arbitration Institute and the Dispute Reconciliation Office, Justice Court
Office demanding DPC, a subsidiary, to pay additional payment of revenue sharing under the Digital
Personal Communication Network Contract in the amount of Baht 2,449 million plus penalty at the
rate of 1.25% per month of the unpaid amount of each year computing from the default date until the
full payment is made which total penalty calculated up to December 2007 is Baht 1,500 million,
totalling Baht 3,949 million.
Later, on 1 October 2008, CAT has submitted the petition to adjust the amount claimed to Baht 3,410
million which calculated from the outstanding revenue sharing up to January 2008 including penalty
for Baht 790 million and value added tax for Baht 171 million.
This amount is the same as an excise tax that DPC had delivered to Excise Department during 16
September 2003 to 15 September 2007 and deducted it from revenue sharing according to the
resolution of the Cabinet dated 11 February 2003. Moreover, CAT has sent a letter No. CAT 603 (Kor
Tor.) 739 notifying DPC to comply with such Cabinets resolution. Thus, DPC has correctly and fully
complied with the Cabinets resolution dated 11 February 2003 and this practice is the same as other
operators in mobile phone or cellular radio telecommunication industries according to the resolution of
the Cabinet.
On 1 March 2011, the Arbitral Tribunal has dismissed the case by giving the reason which can be
summarised that DPC was not in breach of the Agreement since DPC has completely made the
payment of the revenue sharing and all debt was therefore paid in full. Therefore, CAT has no right to
re-claim for the alleged deficit amount, including the penalty and the value added tax.
On 3 June 2011, CAT has submitted the case no. Black 1259/2554 to the Central Administrative Court
to revoke the Arbitral Tribunals award. Presently, the said case is pending on the Central
Administrative Court process.
81

2) The deduction of access charge from revenue sharing between DPC and CAT Telecom Public
Company Limited (CAT)
Pursuant to the resolution of the meeting on 14 January 2004 between TOT Public Company Limited
(TOT), CAT Telecom Public Company Limited (CAT), Digital Phone Company Limited
(DPC), a subsidiary, and True Move Company Limited (True Move) by the Minister of the
Information and Communications Technology Ministry, the Chairman, that TOT consented to reduce
access charge of mobile phone from revenue sharing which TOT received from CAT in the amount of
Baht 22 /number/month to DPC and True Move starting from the 6 th operation year as Total Access
Communication Public Company Limited (DTAC) had received from TOT.
On 12 October 2006 TOT sent a letter to CAT that TOT could not reduce access charge of mobile
phone to DPC and True Move and demanding CAT to pay the access charge that DPC and True Move
have deducted as a discount of access charge plus legal interest rate computing from the default date
until the fully payment is made.
On 29 July 2008, CAT submitted a dispute no. black 68/2551 to the Arbitration Institute and the
Dispute Reconciliation Office, Justice Court Office demanding DPC to pay access charge of mobile
phone that DPC had deducted for Baht 154 million (additional consideration of the 7th -10th operation
year) plus value added tax and interest at the rate 1.25 percent per month of the above principal
amount starting from the default date of each year since the 7th -10th operation year until the full
payment is made.
On 15 October 2009, CAT submitted a dispute no. black 96/2552 to the Arbitration Institute and the
Dispute Reconciliation Office, Justice Court Office demanding DPC to pay access charge of mobile
phone that DPC had deducted for Baht 22 million (additional consideration of the 11th operation year)
including the penalty at the rate of 1.25 percent per month which calculated up to 15 October 2009,
total amount of claim is Baht 26 million.
On 23 March 2012, the Arbitral Tribunal has dismissed the said two disputes by giving the reason
which can be summarised that CAT has not yet paid the discount Baht 22/number/month to TOT.
Moreover, CAT cannot prove that DPC has breached the Agreement and has made the payment of
revenue sharing incorrectly. Therefore, CAT has no right to re-claim for the alleged deficit amount,
including the penalty fine and the value added tax.
On 25 June 2012, CAT has submitted the case no. Black 1016/2555 to the Central Administrative
Court to revoke the Arbitral Tribunals award, and on 16 September 2014, the Central Administrative
Court has issued the dismissal order of this case. On 15 October 2014, CAT has appealed such
dismissal to the Supreme Administrative Court. At present, the said case is pending for consideration
of the Supreme Administrative Court.
82

3) Access charge payment between DPC, CAT Telecom Public Company Limited (CAT ) and TOT
Public Company Limited (TOT)
On 9 May 2011, TOT Public Company Limited (TOT) has submitted the case no. Black 1099/2554
to the Central Administrative Court against CAT Telecom Public Company Limited (CAT) as the
defendant no. 1 and Digital Phone Company Limited (DPC) as the defendant no. 2 demanding CAT
and DPC to pay the access charge amounting to Baht 2,436 million plus value added tax and interest
calculated up to 9 May 2011, total amount of claim is Baht 2,954 million plus interest until the full
payment is made as follows:
1)
Part of DPC calculating on the amount of the mobile phone number which DPC had
rendered the service at the rate of Baht 200/number/month, in the amount of Baht 432
million.
2)
Part of CAT calculating on a half of the revenue sharing which CAT had received from
DPC, in the amount of Baht 2,331 million.
3)
The discount of access charge at the rate of Baht 22/number/month that DPC deducted from
the revenue sharing, in the amount of Baht 191 million. Part of this demand is the same
amount as CAT has claimed according to the dispute no. Black 68/2551 mentioned above
but different in terms of the calculation period and interest.
Later, 31 July 2014 TOT has submitted a petition for revision to adjust the access charge amounting to
Baht 5,454 million calculated up to 16 September 2013 which is the date of the Agreement for
operation period ended plus valued add tax and interest calculated up to 10 July 2014 plus interest
calculated from 10 July 2014 until full payment is made as follows.
1)
Part of DPC calculating on the amount of the mobile phone number which DPC had
rendered the service at the rate of Baht 200/number/month, in the amount of Baht 1,289
million.
2)
Part of CAT calculating on a half of the revenue sharing which CAT had received from
DPC, in the amount of Baht 3,944 million.
3)
The discount of access charge at the rate of Baht 22/number/month that DPC deducted from
the revenue sharing, in the amount of Baht 221 million.
At present, the said case is pending consideration of the Central Administrative Court. The Companys
management believes that the outcome of the said case shall be in favour of DPC and have no material
impact on the consolidated financial statements of the Company since DPC has correctly and fully
complied with the law and the relating Agreements in all respects.
83

4) To deliver and transfer ownership of towers and equipments of power supply between DPC and
CAT Telecom Public Company Limited (CAT)
On 3 February 2009, CAT Telecom Public Company Limited (CAT) has submitted a dispute under
the case no. Black 8/2552 to the Alternative Dispute Resolution Office, the Arbitration Institute,
demanding DPC, a subsidiary, to deliver and transfer ownership of 3,343 towers including 2,653
equipments of power supply under the Digital PCN (Personal Communication Network Agreement).
Failure to do so, DPC must reimburse Baht 2,230 million to CAT. DPC considers that all disputed
assets, towers and the equipment of power supply are not the property as stipulated in the Agreement.
On 18 July 2012, the Arbitral Tribunal has given the arbitration award to dismiss the said disputes
under the reason that the request by CAT to demand the delivery of the assets from DPC was the
premature exercise of legal claim under the contract.
On 25 October 2012, CAT has submitted the case no. Black 2757/2555 to the Central Administrative
Court to revoke the Arbitral Tribunals award. Presently, the said case is pending on the Central
5) The reduction of roaming fee between DPC and CAT Telecom Public Company Limited (CAT)
Starting from 1 July 2006, CAT Telecom Public Company Limited (CAT) allowed Digital Phone
Company Limited (DPC), a subsidiary, to reduce roaming fee per minute from Baht 2.10 to Baht
1.10 to be in line with the decrease of mobile phone service fee. The approval has been renewed for 3month period several times thereafter until 31 March 2007. After that, CAT did not notify DPC of any
changes until on 24 March 2008, CAT had sent a letter to notify DPC to charge roaming fee at Baht
2.10 per minute starting from 1 April 2007. On 8 May 2008, DPC sent a request letter to CAT to
reconsider the roaming fee adjustment. The reason for such request was based on the market
environment where the prevailing mobile phone service charge to consumers in the market was
significantly lower than the specified roaming fee. Such high roaming fee is therefore unreasonable for
DPC to provide the roaming service to any operators. In the letter, DPC informed CAT that during the
period when CAT is reconsidering the request, DPC will charge roaming fee at Baht 1.10 per minute
according to the previous agreed terms and conditions. On 31 March 2009, CAT has approved DPC to
charge roaming fee at Baht 1.10 per minute during 1 January 2009 - 31 March 2009. Moreover, DPC
has entered into the national roaming agreement with the Company to charge roaming fee at Baht 1.10
per minute approved by National Telecommunication Commission (NTC) on 16 June 2009.
On 15 July 2010, CAT has submitted a dispute under case no. Black 62/2553 to the Alternative
Dispute Resolution Office, the Arbitration Institute, demanding DPC to pay additional payment of
revenue sharing of 10th - 12th operation year that DPC reduced roaming fee per minute from Baht
2.10 to Baht 1.10 during 1 April 2007 - 31 December 2008 amounting to Baht 1,636 million plus
penalty computing up to March 2010 of Baht 364 million, totaling Baht 2,000 million and penalty at
the rate of 1.25 percent per month from April 2010 until the full payment is made by alleging that
CAT had approved the said roaming fee reduction up to 31 March 2007 only.
On 12 September 2011, CAT has submitted a dispute to the Alternative Dispute Resolution Office, the
Arbitration Institute; case no. Black 89/2554 demanding DPC to make additional payment of revenue
sharing of 12th operation year which DPC reduced roaming fee from Baht 2.10 per minute to Baht
1.10 per minute during 1 April 2009 - 15 June 2009 in the amount of Baht 113 million plus penalty at
the rate of 1.25% per month from 1 April 2009 until full payment is made.
At present, the said dispute is pending on the Arbitration process. The Companys management
believes that the outcome of the said dispute shall have no material impact on the consolidated
financial statements of the Company since DPC has correctly and fully complied with the law and the
relating Agreements in all respects.
84

6) The damage arisen from uncollectible international call service charges between DPC and CAT
Telecom Public Company Limited (CAT)
On 8 April 2011, CAT Telecom Public Company Limited (CAT) submitted a dispute no. Black
32/2554 to the Arbitration Institute and the Dispute Reconciliation Office, Justice Court Office
demanding DPC to pay Baht 33 million including interest at the rate of 15% per annum of the claimed
amount, total amount of claim Baht 35 million by alleging that DPC has committed a breach of the
Digital PCN (Personal Communication Network) 1800 Service Agreement due to subscriber fraud on
the Digital PCN 1800 Service Agreement between DPC and subscribers for 1,209 numbers during
1997 - 2003 causing damages to CAT where CAT was unable to collect the international call service
charges occurred from the use of such numbers.
On 28 May 2013, the Arbitral Tribunal reached its decision to dismiss such dispute by stating that it is
not about breach of the agreement but whether there has been a wrongful act. Therefore, the dispute is
not within the Jurisdiction of the Arbitral Tribunal.
On 6 September 2013, CAT has submitted the case no. Black 1767/2556 to the Central Administrative
Court to revoke the Arbitral Tribunals award. Presently, the said case is pending on the Central
7) Revenue sharing on interconnection charge between DPC and CAT Telecom Public Company
Limited (CAT)
On 24 August 2012, CAT has submitted a dispute under case no. Black 110/2555 to the Alternative
Dispute Resolution Office, The Arbitration Institute, demanding DPC to pay additional payment of
revenue sharing of 10th - 14th operation year amounting to Baht 183 million and penalty at the rate of
1.25 percent per month of the above principal amount starting from the default date of each year until
the full payment is made.
On 1 April 2014, CAT has submitted a dispute under case no. Black 26/2557 to the Alternative
Dispute Resolution Office, The Arbitration Institute, demanding DPC to pay additional payment of
revenue sharing of 15th operation year amounting to Baht 141 million and penalty at the rate of 1.25
percent per month of the above principal amount starting from the default date of each year until the
full payment is made.
Such amount represents the revenue sharing which CAT calculated on gross interconnection charge
received by DPC from other operators at the percentage rate specified in the Agreement without
deduction of interconnection charge which DPC has to pay to other operators.
At present, the said dispute is pending on the Arbitration procedures. The Companys management
believes that the outcome of the said dispute shall be settled favourably and has no material impact on
the consolidated financial statements of the Company since DPC has correctly and fully complied with
the law and the related conditions of the Agreement in all respects.
8) Obligations of the bank guarantees in connection with the Agreements for Operations
According to the Agreement, Digital Phone Company Limited (DPC) has the duties to deliver the
bank guarantees to CAT Telecom Public Company Limited (CAT) to secure the payment of the
minimum revenue sharing for each operation year and shall recover the bank guarantee of the
operation year back.
85

CAT did not return the bank guarantees which have secured the payment of the minimum revenue
sharing for the operation year 10th - 14th for a total value of Baht 2,606 million by claiming that DPC
had not completely paid the revenue sharing due to the deduction of the revenue sharing for the Excise
Tax and the deduction of the Interconnection Charges, the discount of Access Charges and the
reduction of the rate of roaming charge where the disputes of which have been pending the
consideration of the Arbitral Tribunal.
On 8 October 2012, DPC has submitted a dispute to the Office of Dispute Resolution, Arbitration
Institute, case no. Black 120/2555 requesting the Arbitral Tribunal to award an order to CAT to return
the bank guarantees to DPC because DPC has completely paid the revenue sharing for each operation
year and has correctly and fully complied with the law and the relating Agreements in all respects. At
present, the above mentioned disputes are in the process of consideration of the Arbitral Tribunal.
AIN Globalcomm Company Limited (AIN)
The international direct dialling service by using the symbol + between AIN and CAT Telecom
Public Company Limited (CAT)
On 7 March 2008, CAT Telecom Public Company Limited (CAT) has submitted the black case no.
1245/2551 to the Civil Court against Advanced Info Service Public Company Limited
(the Company) as the defendant no. 1 and AIN Globalcomm Company Limited, a subsidiary, as the
defendant no. 2 requesting the Company and the subsidiary to pay compensation with interest rate at
7.5% per annum for damage up to the date of case submission equalling to Baht 130 million. The
reason is to change traffic of the international direct dialling service by the Company and the
subsidiary during 1-27 March 2007 through the Company subscriber by using the symbol + dialling
from no. 005 of the subsidiary, instead of no. 001 of CAT without the prior notification to subscriber.
On 4 September 2008, CAT submitted a petition revision to adjust compensation for Baht 583 million
(including interest) because CAT was damaged consecutively until 7 March 2008.
On 19 November 2008 CAT submitted the request for the order of provisional remedial measure
before delivery of judgment to cease the Company and the subsidiary to transfer the traffic 001 or
symbol + of CAT to traffic 005 of the subsidiary. On 26 February 2009, the Civil Court dismissed
the CAT request and on 20 March 2009, CAT has appealed the dismissal. On 16 August 2012, the
Court of Appeal has issued an order confirming the dismissal order of the Civil Court and CAT has
submitted the petition to the Supreme Court on 19 October 2012. On 3 February 2015, the Supreme
Court has issued an order confirming the dismissal order of the Appeal Court.
On 17 December 2009, the Civil Court has dismissed the case as the facts cannot be proved that CAT
has either an exclusive right to use the symbol + or the right to prohibit the Company and AIN to use
the symbol + and it cannot also been proved that the changing of the connection setting of the
international direct dialing service from using the symbol + for the code 001 of CAT to + for the
code 005 of AIN has caused the subscribers who use international direct dialing service to believe that
they are using the code 001 of CAT, therefore, the acts of the Company have not infringed any right of
CAT and also of AIN which CAT alleged to jointly commit the wrongful act against the Company and
have not infringed the right of CAT as well. CAT has appealed to the Court of Appeal on 10 March
2010. Subsequently on 27 June 2013, the Court of Appeal has issued an order confirming the dismissal
order of the Civil Court and CAT has submitted the petition to the Supreme Court on 16 September
2013. Presently, the said case is pending on the Supreme Court process.
86

41
Events after the reporting period

Increase in share capital of a subsidiary
On 19 January 2015, Advanced Broadband Network Co., Ltd. (ABN), a subsidiary, registered the
increase in the share capital from Baht 1 million (10,000 ordinary shares, Baht 100 par value) to Baht
15 million (150,000 ordinary shares, Baht 100 par value) with the Ministry of Commerce. The purpose
of the capital increase is for future investment. The Company paid for the increased shares by Baht
100 per share, totalling Baht 14 million and holds 99.99% of the issued share capital.
Dividends
At the Board of Directors meeting held on 5 February 2015, the Board passed a resolution proposing
to the annual general shareholders meeting the payment of dividends for the year 2014, at the rate of
Baht 12.00 per share, Baht 6.04 each of which was paid as an interim dividend on 2 September 2014.
The proposed dividends shall be approved by the shareholders.
42
Thai Financial Reporting Standards (TFRS) not yet adopted

A number of new and revised TFRS have been issued but are not yet effective and have not been
applied in preparing these financial statements. Those new and revised TFRS that may be relevant to
the Groups/Companys operations, which become effective for annual financial periods beginning on
or after 1 January in the year indicated, are set out below. The Group/Company does not plan to adopt
these TFRS early.
Topic
Year
effective
Presentation of Financial Statements
2015
Inventories
2015
Statement of Cash Flows
2015
Accounting Policies, Changes in Accounting Estimates and

Errors
2015
Events after the Reporting Period
2015
Construction Contracts
2015
Income Taxes
2015
Property, Plant and Equipment
2015
Leases
2015
Revenue
2015
Employee Benefits
2015
The Effects of Changes in Foreign Exchange Rates
2015
Borrowing Costs
2015
Related Party Disclosures
2015
Accounting and Reporting by Retirement Benefit Plans
2015
Separate Financial Statements
2015
Investments in Associates and Joint Ventures
2015
TFRS
87

TFRS
Topic
Year
effective
Financial Reporting in Hyperinflationary Economies
2015
Earnings per Share
2015
Interim Financial Reporting
2015
Impairment of Assets
2015
Provisions, Contingent Liabilities and Contingent Assets
2015
Intangible Assets
2015
Investment Property
2015
TFRS 2(revised 2014)
Share-based Payment
2015
Business Combinations
2015
Non-current Assets Held for Sale and Discontinued

Operations
2015
Exploration for and Evaluation of Mineral Resources
2015
Operating Segments
2015
TFRS 10
Consolidated Financial Statements
2015
TFRS 11
Joint Arrangements
2015
TFRS 12
Disclosure of Interests in Other Entities
2015
TFRS 13
Fair Value Measurement
2015
TSIC 15 (revised 2014)
Operating Leases - Incentives
2015
Income Taxes - Changes in the Tax Status of an Entity or

its Shareholders
2015
Evaluating the Substance of Transactions Involving the

Legal Form of a Lease
2015
Service Concession Arrangements: Disclosures
2015
Revenue - Barter Transactions Involving Advertising

Services
2015
Intangible Assets-Web Site Costs
2015
TFRIC 1(revised 2014)
Changes in Existing Decommissioning, Restoration and

Similar Liabilities
2015
TFRIC 4 (revised 2014)
Determining whether an Arrangement contains a Lease
2015
Rights to Interests arising from Decommissioning,

Restoration and Environmental Rehabilitation Funds
2015
Interim Financial Reporting and Impairment
2015
Service Concession Arrangements
2015
Customer Loyalty Programmes
2015
TFRIC 14
TAS 19 (revised 2014) -The Limit on a Defined Benefit

Asset, Minimum Funding Requirements and their
Interaction
2015
88

TFRS
Year
effective
Topic
Distributions of Non-cash Assets to Owners
2015
Transfers of Assets from Customers
2015
The Group/Company has made a preliminary assessment of the potential initial impact on the
consolidated and separate / Companys financial statements of these new and revised TFRS and
expects that there will be no material impact on the financial statements in the period of initial
application.
43
Reclassification of accounts
Certain accounts in the statement of income for the year ended 31 December 2013 have been
reclassified to conform to the presentation in the 2014 financial statements as follows:
2013
Consolidated
Separate
Before
After
Before
After
reclass.
Reclass.
reclass.
reclass.
Reclass.
reclass.
(in million Baht)
Statement of income for the
year ended 31 December
Revenue from rendering of
services and equipment
rentals
123,788
Construction income from the
Cost of rendering of services
and equipment rentals
(39,108)
Construction cost from the
-
4,028
127,816
101,353
4,671
106,024
3,766
3,766
3,640
3,640
(4,028)
(43,136)
(3,766)
-
(3,766)
(32,773)
-
(4,671)
(37,444)
(3,640)
-
(3,640)
The reclassifications have been made because, in the opinion of management, the new classification is
more appropriate to the Groups business.
89

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Advanced Info Service Public Company Limited

and its Subsidiaries

Independent Auditors Report

Advanced Info Service Public Company Limited and its Subsidiaries

Specifically-designated bank deposits

Trade accounts receivable

Short-term loans to related parties

Other current assets

Other long-term investments

Property, plant and equipment

Intangible assets under

the Agreements for operations

Other intangible assets

Swap and forward contracts receivable

Deferred tax assets

Other non-current assets

Total non-current assets

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

Advanced Info Service Public Company Limited and its Subsidiaries

Liabilities and equity

Trade accounts payable

Short-term loan from related parties

Current portion of long-term borrowings

Current portion of spectrum license payable

Accrued revenue sharing expenses

Unearned income - mobile phone service

Advanced receipts from customers

Income tax payable

Other current liabilities

Employee benefit obligations

Spectrum license payable

Total non-current liabilities

Authorised share capital

Issued and paid-up share capital

Other non-current liabilities

Additional paid-in capital

Equity attributable to owners

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

Advanced Info Service Public Company Limited and its Subsidiaries

For the year ended 31 December

For the year ended 31 December

Construction income from the Agreements

Selling and administrative expenses

Total selling and administrative expenses

Profit from sales, services and

Other operating income

Share of loss of associate

Impairment loss of assets

Net foreign exchange gain (loss)

Profit before income tax expense

Profit for the year

Profit attributable to:

Profit for the year

Basic earnings per share

Diluted earning per share

Earnings per share

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

Advanced Info Service Public Company Limited and its Subsidiaries

For the year ended 31 December

For the year ended 31 December

Other comprehensive income

Total comprehensive income attributable to:

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

Advanced Info Service Public Company Limited and its Subsidiaries