Page 100 - Annual Report English 2018

Tycoons Worldwide Group (Thailand) Plc.

(Unit: Million Baht)

As at 31 December 2017
Consolidated/Separate

financial statements
Increase 0.5% Decrease 0.5%
Discount rate (1) 2
Salary increase rate 2 (1)

On 13 December 2018, The National Legislative Assembly passed a resolution
approving the draft of a new Labour Protection Act, which is in the process being

published in the Royal Gazette. The new Labour Protection Act stipulates additional
legal severance pay rates for employees who have worked for an uninterrupted period
of twenty years or more. Such employees are entitled to receive compensation at a
rate of not less than that of the last 400 days. This change is considered a post-

employment benefits plan amendment and the Company have additional liabilities for
long-term employee benefits of Baht 7 million. The Company will reflect the effect of
the change by recognising past services costs as expenses in the income statement of
the period in which the law is effective.

20. Statutory reserve

Pursuant to Section 116 of the Public Limited Companies Act B.E. 2535, the Company
is required to set aside to a statutory reserve at least 5 percent of its net income after

deducting accumulated deficit brought forward (if any), until the reserve reaches 10
percent of the registered capital. The statutory reserve is not available for dividend
distribution.

21. Expenses by nature

Significant expenses classified by nature are as follows:
(Unit: Thousand Baht)

Consolidated/Separate
financial statements
2018 2017
Salaries and wages and other employee benefits 284,562 270,068

Depreciation and amortization 350,973 312,663
Transportation expenses 167,615 145,331
Raw materials and consumables used 8,793,007 5,843,085
Changes in inventories of finished goods and work in progress 396,879 130,903

90