7. CAPITAL STRUCTURE

7.1 Shares in STA

As of 1 March 2013, STA has a registered capital of Baht 1,280,000,000
(One thousand two hundred and eighty million) and paid-up capital of
Baht 1,280,000,000 (One thousand two hundred and eighty million),
divided into 1,280,000,000 (One thousand two hundred and eighty million)
shares with a par value of Baht 1 each. The aforementioned shares are
listed securities on both the SET and SGX-ST.

2.  Non-Voting Depository Receipt (NVDR)

As of 1 March 2013, the Thai NVDR Co., Ltd. held 50,969,894 shares in
STA or 3.98% of the total issued shares of STA. The investors who hold
NVDRs will receive the same financial benefits (i.e. dividends, rights
issue, and warrants) as those who invest directly in the shares in STA.
The NVDR holders, however, do not have the right to vote in the meeting
of shareholders. The Thai NVDR Co., Ltd. will not exercise the right to
vote in the shareholders’ meeting, except in the case of considering the
delisting of securities from the SET.

3.  Debentures

On 1 December 2011, STA successfully issued the debentures in two
tranches to the institutional and high net-worth investors with total
amount of Baht 2,150,000,000.
On 1 November 2011, Tris Rating Co., Ltd. assigned A- / Stable rating
for the newly issued debentures. Net proceeds from the issuance of
debentures in an aggregate amount of approximately Baht 2,145,000,000
million will be used for long-term loan refinancing and/or business
expansion. Details of each tranche of debenture are as follows;

+--------------------+-----------------------+------------------------+
|                    | Tranche 1             | Tranche 2              |
+====================+=======================+========================+
| Debenture Name     | Debenture of Sri      |   Debenture of Sri     |
|                    | Trang - Agro Industry |   Trang - Agro         |
|                    | Public Company        |   Industry Public      |
|                    | Limited no. 1/2554    |   Company Limited no.  |
|                    | due in 2014.          |   1/2554 due in 2016.  |
+--------------------+-----------------------+------------------------+
| Type of Debentures | Unsubordinated and    |   Unsubordinated and   |
|                    | unsecured debentures  |   unsecured debentures |
|                    | with a debenture      |   with a debenture     |
|                    | holders’              |   holders’             |
|                    | representative        |   representative       |
+--------------------+-----------------------+------------------------+
|   ---------------  |   ------------------  |   -------------------  |
|   Principal        |   Baht 1,600,000,000  |   Baht 550,000,000     |
|   amount of        |                       |                        |
|   Debentures       |   ------------------  |   -------------------  |
|                    |                       |                        |
|   ---------------  |                       |                        |
+--------------------+-----------------------+------------------------+
|   ---------------  | Fixed interest rate   |   Fixed interest rate  |
|   Interest rate    | at 4.4% per annum     |   at 4.7% per annum    |
|                    |                       |                        |
|   ---------------  |                       |                        |
+--------------------+-----------------------+------------------------+
| Interest Payable   |   ------------------  |   -------------------  |
|                    |   Semi-annually       |   Semi-annually        |
|                    |                       |                        |
|                    |   ------------------  |   -------------------  |
+--------------------+-----------------------+------------------------+
| Term               | 3 Years               | 5 Years                |
+--------------------+-----------------------+------------------------+
| Maturity Date      | 1 December 2014       | 1 December 2016        |
+--------------------+-----------------------+------------------------+

On 13 February 2013, STA successfully issued the debentures in two
tranches to the institutional and high net-worth investors with total
amount of Baht 900,000,000. STA intends to use the net proceeds for
working capital and/or business expansion of the group. Details of each
tranche of debenture are as follows;

+--------------------+-----------------------+------------------------+
|                    | Tranche 1             | Tranche 2              |
+====================+=======================+========================+
| Type of Debentures |   Unsubordinated and  |   Unsubordinated and   |
|                    |   unsecured           |   unsecured debentures |
|                    |   debentures with a   |   with a debenture     |
|                    |   debenture holders’  |   holders’             |
|                    |   representative      |   representative       |
+--------------------+-----------------------+------------------------+
|   ---------------  |   Baht 300,000,000    |   Baht 600,000,000     |
|   Principal        |                       |                        |
|   amount of        |                       |                        |
|   Debentures       |                       |                        |
|                    |                       |                        |
|   ---------------  |                       |                        |
+--------------------+-----------------------+------------------------+
|   ---------------  |   Fixed interest rate |   Fixed interest rate  |
|   Interest rate    |   at 4.1% per annum   |   at 4.5% per annum    |
|                    |                       |                        |
|   ---------------  |                       |                        |
+--------------------+-----------------------+------------------------+
| Interest Payable   |   Semi-annually       |   Semi-annually        |
+--------------------+-----------------------+------------------------+
| Term               |   3 years             |   5 years              |
+--------------------+-----------------------+------------------------+
| Maturity Date      |   13 February 2016    |   13 February 2018     |
+--------------------+-----------------------+------------------------+

4.  Shareholders

Top twenty largest shareholders of STA according to the book closure
date as of 1 March 2013, are as follows:

  ------------------------------------------------------------------------
         Name / Company                          No. of Shares (%)
  ------ --------------------------------------- ------------- -----------
  1      STH                                     246,852,060   19.29

  2      Dr. Viyavood Sincharoenkul              168,523,970   13.17

  3      Mr. Aram Sirisuwat                      54,787,505    4.28

  4      Thai NVDR Co., Ltd                      50,969,894    3.98

  5      CITIBANK NOMS S'PORE PTE LTD            34,024,250    2.66

  6      Mr. Veerasith Sinchareonkul             22,441,000    1.75

  7      Mr. Somwang Sincharoenkul               18,913,305    1.48

  8      Mr. Kitichai Sincharoenkul              14,250,000    1.11

  9      Mr. Tsai Wu-Ying                        13,153,420    1.03

  10     Southland Rubber Co., Ltd.              11,605,920    0.91

  11     CITIGROUP GLOBAL MARKETS                11,452,750    0.89
         LIMITED.-PROP.CUSTODY ACCOUNT                         

  12     STATE STREET BANK EUROPE LIMITED        11,132,600    0.87

  13     SOMERS (U.K.) LIMITED                   10,313,700    0.81

  14     Mr.Puthirat Pathratrathip               10,043,295    0.78

  15     UOB Kay Hian Private Limited            10,000,000    0.78

  16     RAFFLES NOMINEES (PTE) LTD              9,731,000     0.76

  17     Mr. Paul Sumade Lee                     8,906,955     0.70

  18     KGI (Thailand) Co., Ltd.                8,597,400     0.67

  19     Mrs. Promsuk Sinchareonkul              8,450,000     0.66

  20     Mrs. Sungai Cherdkiatgamchai            8,357,875     0.65

         Total                                   732,506,899   57.23
  ------------------------------------------------------------------------

Note: Information obtained from TSD and CDP

The top 10 major shareholders of STH are as follows;

+-------------------------------+------------------+------------------+
| Name                          | As at 1 March    |                  |
|                               | 2013             |                  |
+===============================+==================+==================+
|                               | No. of Shares    | Direct           |
|                               | (Par value of    | Shareholing      |
|                               | Baht 10 each)    |                  |
|                               |                  | (%)              |
+-------------------------------+------------------+------------------+
| 1. Mr. Viyavood Sincharoenkul | 2,787,700        | 31.68            |
+-------------------------------+------------------+------------------+
| 2. Ms. Susan Su               | 1,206,000        | 13.70            |
+-------------------------------+------------------+------------------+
| 3. Ms. Somsri Sirisuwat       | 672,000          | 7.64             |
+-------------------------------+------------------+------------------+
| 4. Mr. Somwang Sincharoenkul  | 570,860          | 6.49             |
+-------------------------------+------------------+------------------+
| 5. Mr. Chaiyos Sincharoenkul  | 542,860          | 6.17             |
+-------------------------------+------------------+------------------+
| 6. Paktai Rubber⁽¹⁾           | 528,000          | 6.00             |
+-------------------------------+------------------+------------------+
| 7. Nguan Chiang Food Industry | 448,000          | 5.09             |
| Co., Ltd.                     |                  |                  |
+-------------------------------+------------------+------------------+
| 8. Mr. Paul Sumade Lee        | 397,000          | 4.51             |
+-------------------------------+------------------+------------------+
| 9. Mr. Kitichai Sincharoenkul | 348,880          | 3.96             |
+-------------------------------+------------------+------------------+
| 10. Mrs. Voradi Sincharoenkul | 226,860          | 2.58             |
+-------------------------------+------------------+------------------+
| 11. Others                    | 1,071,840        | 12.18            |
+-------------------------------+------------------+------------------+
| Total                         | 8,800,000        | 100              |
+-------------------------------+------------------+------------------+

Notes: (1) Mr. Viyavood Sincharoenkul, Mrs. Duangjai Sincharoenkul and
Mr. Chaiyos Sincharoenkul are limited partners

The shareholding of Sincharoenkul family who are the top 10 major
shareholders of STA holding shares in STH as at the book closure date as
at 1 March 2013 combined with holdings of related persons as defined in
Section 258 of the SEC Act are as follows:

  -----------------------------------------------------------------------
  Name                                Shareholding in STA (%)
  ----------------------------------- -----------------------------------
  1. Mr. Viyavood Sincharoenkul       33.11

  2. Mr. Veerasith Sinchareonkul      1.75

  3. Mr. Somwang Sincharoenkul        1.48

  4. Mr. Kitichai Sincharoenkul       1.11
  -----------------------------------------------------------------------

7.5 Dividend Policy

7.5.1 Dividend Policy of STA

Our policy is to pay a dividend of approximately 30.0% of our net profit
for each financial year as contained in our Company’s stand-alone
financial statements, but not in excess of our retained earnings. In
considering the level of dividend payments, we intend to take into
account various factors, including STA’s financial position, results of
operations and cash flow; the ability of our subsidiaries, associates
and joint venture entity to make dividend payment to STA; STA’s expected
working capital requirements to support STA’s future growth; and general
economic conditions and such other external factors that STA believes to
have an impact on the business operations of STA.

2.  Dividend Policy of Our Subsidiaries

The dividend payment of our subsidiaries shall be approved by the Board
of Directors of each subsidiary and shall be presented to the
shareholders’ meeting for approval. The Company does not fix the
percentage of dividend payment. The dividend payment made by our
subsidiaries will depend on the business profits, financial position and
the future investment plans of each subsidiary and shall be according to
its Articles of Association and the relevant laws.