11. Financial Status and Operation Performance

1) Financial Statements

A. Report of the Independent Auditor

-Miss Nongram Laoha-areedilok, C.P.A.(Thailand) No.4334

-Opinion in the Auditor’s report of the past three years

is unconditional

-Important accounting policies

Basic for Consolidated Financial Statements and Separate Financial
Statements Preparation

The consolidated and the Separate Financial Statements have been
prepared in accordance with Thai Generally Accepted Accounting
Principles under the Accounting Act, B.E.2543, being those Thai
Financial Reporting Standards issued under the Accounting Profession
Act, B.E.2547 and the financial reporting requirements of the Securities
and Exchange Commission under the Securities and Exchange Act.

The preparation of Financial Statements in conformity with Thai
Generally Accepted Accounting Principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities at the
date of the Financial Statements and the amounts of revenues and
expenses in the reported periods. Although these estimates are based on
management’s best knowledge of current events and actions, actual
results may differ from those estimates.

The Financial Statements have been prepared under the historical cost
convention except as disclosed in the accounting policies.

The consolidated Financial Statements include the Financial Statements
of Chiangmai Frozen Foods Public Company Limited and its Subsidiary,
Agrifood Processing Company Limited, with the holding of 100% of
authorized share.

“The Company” represents “Chiangmai Frozen Foods Public Company
Limited,” while “The Group” represents “Chiangmai Frozen Foods Public
Company Limited” and its subsidiary which is “Agrifood Processing
Company Limited”.

The significant transactions between the Company and its subsidiary have
been eliminated in the consolidated Financial Statements.

For the convenience of the user, an English translation of the financial
statements has been prepared from the financial statements that are
issued in the Thai language.

Cash and Cash Equivalents

Cash and Cash equivalents consist of cash in hand, cash at banks and all
highly liquid investments with an original maturity of three months or
less and not subject to withdrawal restrictions.

Deposits at financial institutions that are restricted in use are
presented as “Fixed deposits pledged as collateral” as part of
non-current assets in the Statements of Financial Position.

Accounts Receivable

Accounts receivable are carried at original invoice amount less
allowance for doubtful accounts.

Allowance for Doubtful Accounts

The Group provide allowance for doubtful accounts equal to the estimated
losses that may be incurred in the collection of receivables and
receivables-planters. The estimated losses are based on the collection
experiences and the review of the current status of the existing
receivables bad debts are written off during the year in which they are
identified.

Inventories

Inventories are stated at the lower of cost or net realizable value.
Cost is determined by the weighted average method. The cost of purchase
comprises both the purchase price and costs directly attributable to the
acquisition of the inventory, such as import duties and transportation
charges, less all attributable discounts, allowances or rebates. The
cost of finished goods and work in progress comprises raw materials,
direct labour, other direct costs and related production overheads, the
latter being allocated on the basis of normal operating activities. Net
realizable value is the estimate of the selling price in the ordinary
course of business, less the costs of completion and selling expenses.

At the end of year, the Company considers the physical of finished goods
in the estimation of adequately allowance for obsolete.

Investments in Subsidiary

Subsidiary, which is those entities in which the Group has an interest
of more than one half of the voting rights or otherwise has power to
exercise control over the operations are consolidated. Subsidiary is
consolidated from the date on which control is transferred to the Group
and are no longer consolidated from the date that control ceases. All
intercompany transactions, balances and unrealized gains on transactions
between group companies are eliminated; unrealized losses are also
eliminated unless cost cannot be recovered. Where necessary, accounting
policies of subsidiary has been changed to ensure consistency with the
policies adopted by the Group.

Investment in subsidiary is reported by using the cost method of
accounting in the separate Financial Statements.

Property, Plant and Equipment

Property, plant and equipment are initially recorded at cost. All assets
except for land are stated at historical cost less accumulated
depreciation.

Depreciation of plant and equipment are calculated on the straight line
method over their estimated useful lives are as follows:

  No. of Years

Buildings 20 years

Machineries and equipment 5-10 years

Vehicles 5 years

Office equipment and fixtures 5 years

When assets are sold or retired, the Group will eliminated their costs
and accumulated depreciation from the accounts and any gain or loss
resulting from their disposal is included in the Statements of Income.

Building-in-progress and machinery under installation are stated at
cost. These assets are not depreciated until such time as the relevant
assets are completed and ready for their intended operational use.

Intangible asset and amortization

Intangible asset is computer software which is stated at historical cost
and amortized using the straight line method over its useful life (3-5
years).

Impairment of Assets

The Group reviewed the impairment of assets whenever events or charges
in circumstances indicate that the recoverable amount of assets is below
the carrying amount (the higher of an assets selling price or value in
use). The review is made for individual assets or the cash generating
unit.

In case that the carrying value of an asset exceeds its recoverable
amount, the Group recognize the impairment losses in the Statements of
Income. The reversal of impairment losses recognized in prior years is
recorded as other income when there is an indication that the impairment
losses recognized for the assets no longer exits or are decreased.

Foreign currency transactions

Foreign currency transactions are translated into Thai Baht using the
exchange rates prevailing at the date of the transaction. Monetary
assets and liabilities denominated in foreign currency are translated to
Thai Baht at the exchange rate prevailing at the statements of financial
position date. Gains and losses resulting from the settlement of foreign
currency transactions and from the transaction of monetary assets and
liabilities denominated in foreign currencies, are recognized in the
statement of income.

Accounting for leases – where a company is the lessee

Leases of assets which substantially transfer all the risks and rewards
of ownership are classified as finance leases. Finance leases are
capitalized at the inception of the lease at the lower of the fair value
of the leased property or the present value of the minimum lease
payments. Each lease payment is allocated to the principal and to the
finance so as to achieve a constant rate on the finance balance
outstanding. The outstanding rental obligations, net of finance charges,
are included in other long-term payables. The interest element of the
finance cost is charged to the statement of income over the lease
period. The property, plant or equipment acquired under finance leases
is depreciated over the useful life of the assets.

Leases not transferring a significant portion of the risks and rewards
of ownership to the lease are classified as operating leases. Payments
made under operating leases (net of any incentives received from the
less or) are charged to the statement of income on a straight-line basis
over the period of the lease.

Employee benefits

Short-term employee benefits

Salaries, wages, bonuses and contributions to the social security fund
are recognized as expenses when incurred.

Post-employment benefits

Defined contribution plans

The Company, its subsidiaries and its employees have jointly established
a provident fund. The fund is monthly contributed by employees and by
the Group. The fund’s assets are held in a separate trust fund and the
Group contributions are recognized as expenses when incurred.

Defined benefit plans

The Group have obligations in respect of the severance payments it must
make to employees upon retirement under labor law. The Company and its
subsidiaries treat these severance payment obligations as a defined
benefit plan.

The obligation under the defined benefit plan is determined by a
professionally qualified independent actuary based on actuarial
techniques, using the projected unit credit method.

Actuarial gains and losses arising from other long-term benefits are
recognized immediately in profit or loss.

The defined benefits liability comprises the present value of the
defined benefit obligation less unrecognized past service cost and
unrecognized actuarial gains or losses.

For the first-time adoption of TAS 19 Employee Benefits in 2011, the
Company elected to recognize the transitional liability, which exceeds
the liability that would have been recognized at the same date under the
previous accounting policy, through an adjustment to the beginning
balance of retained earnings in 2011.

Provisions

Provisions are recognized when the Group have a present legal or
constructive obligation as a result of past events, it is probable that
an outflow of resources will be required to settle the obligation, and a
reliable estimate of the amount can be made. Where the Company and
subsidiary expect a provision to be reimbursed, the reimbursement is
recognized as a separate asset but only when the reimbursement is
virtually certain.

Revenue recognition

The Group recognized sales as income when goods are delivered and the
risks and rewards are transferred to customers.

Interest income is recognized on a time proportion basis that reflects
the effective yield on the asset.

Income tax

The Group record income tax based on the actual amount currently payable
according to the Revenue Code.

Basic earnings per share

Basic earnings per share is calculated by dividing the net income by
weighted average number of paid-up common shares during the years.

Financial instruments

Financial assets carried on the statements of financial position include
cash and cash equivalents, fixed deposit, trade and other receivable and
loan to. Financial liabilities carried on the statements of financial
position include trade accounts payable, accrued income tax and accrued
expenses. The particular recognition methods adopted are disclosed in
the individual policy statements associated with each item.

Significant accounting judgments and estimates

The preparation of financial statements in conformity with generally
accepted accounting principles at times requires management to make
subjective judgments and estimates regarding matters that are inherently
uncertain. These judgments and estimates affect reported amounts and
disclosures and actual results could differ from these estimates.
Significant judgments and estimates are as follows:

Allowance for doubtful accounts

In determining an allowance for doubtful accounts, the management needs
to make judgment and estimates based upon, among other things, past
collection history, aging profile of outstanding debts and the
prevailing economic condition.

Allowance for net realizable value

The Group considers the allowance for net realizable value based on the
estimate of selling price in the ordinary course of business and normal
condition of inventory. The net realizable value is the estimate of the
selling price in the ordinary course of business, less the costs of
completion and selling expenses.

Property plant and equipment/Depreciation

In determining depreciation of plant and equipment, the management is
required to make estimates of the useful lives and residual values of
the Company’s plant and equipment and to review estimate useful lives
and residual values when there are any changes.

In addition, the management is required to review property, plant and
equipment for impairment on a periodical basis and record impairment
losses when it is determined that their recoverable amount is lower than
the carrying amount. This requires judgments regarding forecast of
future revenues and expenses relating to the assets subject to the
review.

Related person and companies

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, subsidiary and
fellow subsidiary are related parties of the Company. Associates and
individuals owning, directly or indirectly, an interest in the voting
power of the Company that gives them significant influence over the
enterprise, key management personnel, including directors and officers
of the Company and close members of the family of these individuals and
companies associated with these individuals also constitute related
parties.

In considering each possible related party relationship, attention is
directed to the substance of the relationship, and not merely the legal
form.

B. Summary of Financial Statements

Statements of Financial Position

(Unit: Thousand baht)

+------------------------+--------+-----+--------+-----+--------+-----+
| ASSETS                 | Se     |     |        |     |        |     |
|                        | parate |     |        |     |        |     |
|                        | Fin    |     |        |     |        |     |
|                        | ancial |     |        |     |        |     |
|                        | Stat   |     |        |     |        |     |
|                        | ements |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
|                        | 2012   | %   | 2011   | %   | 2010   | %   |
+------------------------+--------+-----+--------+-----+--------+-----+
| Current Assets         | 3      | 2   | 2      | 1   | 1      | 1   |
|                        | 27,082 | 3.1 | 42,783 | 9.3 | 59,539 | 1.9 |
| Cash and cash          |        |     |        |     |        |     |
| equivalents            |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Short-term investments | 2      | 1   | 1      | 1   | 3      | 2   |
|                        | 00,000 | 4.1 | 50,000 | 2.0 | 00,000 | 2.3 |
+------------------------+--------+-----+--------+-----+--------+-----+
| Trade and other        | 64,578 | 4.6 | 58,040 | 4.6 | 58,511 | 4.4 |
| receivables            |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Inventories-net        | 3      | 2   | 3      | 2   | 3      | 2   |
|                        | 56,818 | 5.3 | 36,257 | 6.8 | 09,958 | 3.0 |
+------------------------+--------+-----+--------+-----+--------+-----+
| Accounts receivable-   | 49,733 | 3.5 | 28,822 | 2.3 | 36,184 | 2.7 |
|                        |        |     |        |     |        |     |
| planters-net           |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Other current assets   | 2,603  | 0.2 | 2,427  | 0.2 | 3,420  | 0.2 |
+------------------------+--------+-----+--------+-----+--------+-----+
| Total Current Assets   | 1,0    | 7   | 8      | 6   | 8      | 6   |
|                        | 00,814 | 0.8 | 18,329 | 5.2 | 67,612 | 4.5 |
+------------------------+--------+-----+--------+-----+--------+-----+
| Investments in         | 23,354 | 1.7 | 23,354 | 1.9 | 23,354 | 1.7 |
| subsidiary             |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Property, plant and    | 3      | 2   | 4      | 3   | 4      | 3   |
|                        | 80,464 | 6.9 | 06,033 | 2.3 | 48,218 | 3.4 |
| equipment-net          |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Computer software-net  | 4,579  | 0.3 | 2,977  | 0.2 | 2,799  | 0.2 |
+------------------------+--------+-----+--------+-----+--------+-----+
| Other non-current      | 4,204  | 0.3 | 5,053  | 0.4 | 3,204  | 0.2 |
| assets                 |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| TOTAL ASSETS           | 1,4    | 10  | 1,2    | 10  | 1,3    | 10  |
|                        | 13,415 | 0.0 | 55,746 | 0.0 | 45,187 | 0.0 |
+------------------------+--------+-----+--------+-----+--------+-----+

(Unit: Thousand baht)

+------------------------+--------+-----+--------+-----+--------+-----+
| LIABILITIES AND        | Se     |     |        |     |        |     |
| SHAREHOLDERS’ EQUITY   | parate |     |        |     |        |     |
|                        | Fin    |     |        |     |        |     |
|                        | ancial |     |        |     |        |     |
|                        | Stat   |     |        |     |        |     |
|                        | ements |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
|                        | 2012   | %   | 2011   | %   | 2010   | %   |
+------------------------+--------+-----+--------+-----+--------+-----+
| Current Liabilities    | 91,601 | 6.5 | 68,303 | 5.5 | 82,717 | 6.1 |
|                        |        |     |        |     |        |     |
| Trade and other        |        |     |        |     |        |     |
| payables               |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Accrued income tax     | 16,617 | 1.2 | 3,896  | 0.3 | 1,376  | 0.1 |
+------------------------+--------+-----+--------+-----+--------+-----+
| Other current          | 2,767  | 0.2 | 2,609  | 0.2 | 2,373  | 0.2 |
| liabilities            |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Total Current          | 1      | 7.9 | 74,808 | 6.0 | 86,466 | 6.4 |
| Liabilities            | 10,985 |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Employee benefit       | 28,169 | 2.0 | 24,899 | 2.0 | -      | -   |
| obligations            |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Total Liabilities      | 1      | 9.9 | 99,707 | 8.0 | 86,466 | 6.4 |
|                        | 39,154 |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Shareholders’ Equity   | 3      | 2   | 3      | 3   | 3      | 2   |
|                        | 81,146 | 7.0 | 81,146 | 0.3 | 81,146 | 8.3 |
| Share capital - Baht 1 |        |     |        |     |        |     |
| par value              |        |     |        |     |        |     |
|                        |        |     |        |     |        |     |
| Authorized shares      |        |     |        |     |        |     |
|                        |        |     |        |     |        |     |
| 381,146,251 common     |        |     |        |     |        |     |
| shares                 |        |     |        |     |        |     |
|                        |        |     |        |     |        |     |
| in 2010, 2011 and 2012 |        |     |        |     |        |     |
|                        |        |     |        |     |        |     |
| Issued and paid-up     |        |     |        |     |        |     |
| Shares                 |        |     |        |     |        |     |
|                        |        |     |        |     |        |     |
| 381,146,251 in 2010,   |        |     |        |     |        |     |
| 2011                   |        |     |        |     |        |     |
|                        |        |     |        |     |        |     |
| and 2012               |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Premium on share       | 68,000 | 4.8 | 68,000 | 5.4 | 68,000 | 5.1 |
| capital                |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Retained earnings      | 38,115 | 2.7 | 38,115 | 3.0 | 38,115 | 2.8 |
|                        |        |     |        |     |        |     |
| -Appropriated for      |        |     |        |     |        |     |
| legal                  |        |     |        |     |        |     |
|                        |        |     |        |     |        |     |
| reserve                |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| -Un appropriated       | 7      | 5   | 6      | 5   | 7      | 5   |
|                        | 87,000 | 5.6 | 68,778 | 3.3 | 71,460 | 7.4 |
+------------------------+--------+-----+--------+-----+--------+-----+
| Total Shareholders’    | 1,2    | 9   | 1,1    | 9   | 1,2    | 9   |
| Equity                 | 74,261 | 0.1 | 56,039 | 2.0 | 58,721 | 3.6 |
+------------------------+--------+-----+--------+-----+--------+-----+
| TOTAL LIABILITIES AND  | 1,4    | 10  | 1,2    | 10  | 1,3    | 10  |
| SHAREHOLDERS’ EQUITY   | 13,415 | 0.0 | 55,746 | 0.0 | 45,187 | 0.0 |
+------------------------+--------+-----+--------+-----+--------+-----+

Statements of Financial Position

(Unit: Thousand baht)

+------------------------+--------+-----+--------+-----+--------+-----+
| ASSETS                 | Consol |     |        |     |        |     |
|                        | idated |     |        |     |        |     |
|                        | Fin    |     |        |     |        |     |
|                        | ancial |     |        |     |        |     |
|                        | Stat   |     |        |     |        |     |
|                        | ements |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
|                        | 2012   | %   | 2011   | %   | 2010   | %   |
+------------------------+--------+-----+--------+-----+--------+-----+
| Current Assets         | 3      | 2   | 2      | 2   | 1      | 1   |
|                        | 54,251 | 4.7 | 61,772 | 0.5 | 80,544 | 3.3 |
| Cash and cash          |        |     |        |     |        |     |
| equivalents            |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Short-term investments | 2      | 1   | 1      | 1   | 3      | 2   |
|                        | 05,600 | 4.3 | 55,600 | 2.2 | 05,563 | 2.5 |
+------------------------+--------+-----+--------+-----+--------+-----+
| Trade and other        | 60,672 | 4.2 | 58,593 | 4.6 | 52,919 | 3.9 |
| receivables            |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Inventories-net        | 3      | 2   | 3      | 2   | 3      | 2   |
|                        | 56,258 | 4.9 | 36,258 | 6.4 | 09,959 | 2.8 |
+------------------------+--------+-----+--------+-----+--------+-----+
| Accounts receivable-   | 49,733 | 3.5 | 28,822 | 2.3 | 36,184 | 2.7 |
|                        |        |     |        |     |        |     |
| planters-net           |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Others current assets  | 2,657  | 0.2 | 2,513  | 0.2 | 3,456  | 0.2 |
+------------------------+--------+-----+--------+-----+--------+-----+
| Total Current Assets   | 1,0    | 7   | 8      | 6   | 8      | 6   |
|                        | 29,731 | 1.8 | 43,558 | 6.2 | 88,625 | 5.4 |
+------------------------+--------+-----+--------+-----+--------+-----+
| Fixed deposit pledged  | 14,942 | 1.0 | 14,672 | 1.2 | 14,492 | 1.1 |
| as                     |        |     |        |     |        |     |
|                        |        |     |        |     |        |     |
| collateral             |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Property, plant and    | 3      | 2   | 4      | 3   | 4      | 3   |
|                        | 81,281 | 6.6 | 07,199 | 2.0 | 49,709 | 3.1 |
| equipment-net          |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Computer software-net  | 4,579  | 0.3 | 2,977  | 0.2 | 2,799  | 0.2 |
+------------------------+--------+-----+--------+-----+--------+-----+
| Other non-current      | 4,205  | 0.3 | 5,054  | 0.4 | 3,205  | 0.2 |
| assets                 |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| TOTAL ASSETS           | 1,4    | 10  | 1,2    | 10  | 1,3    | 10  |
|                        | 34,738 | 0.0 | 73,460 | 0.0 | 58,830 | 0.0 |
+------------------------+--------+-----+--------+-----+--------+-----+

(Unit: Thousand baht)

+------------------------+--------+-----+--------+-----+--------+-----+
| LIABILITIES AND        | Consol |     |        |     |        |     |
| SHAREHOLDERS’ EQUITY   | idated |     |        |     |        |     |
|                        | Fin    |     |        |     |        |     |
|                        | ancial |     |        |     |        |     |
|                        | Stat   |     |        |     |        |     |
|                        | ements |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
|                        | 2012   | %   | 2011   | %   | 2010   | %   |
+------------------------+--------+-----+--------+-----+--------+-----+
| Current Liabilities    | 93,435 | 6.6 | 69,411 | 5.4 | 84,072 | 6.2 |
|                        |        |     |        |     |        |     |
| Trade and other        |        |     |        |     |        |     |
| payables               |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Accrued income tax     | 17,237 | 1.2 | 4,802  | 0.4 | 1,376  | 0.1 |
+------------------------+--------+-----+--------+-----+--------+-----+
| Other current          | 2,827  | 0.2 | 2,734  | 0.2 | 2,412  | 0.2 |
| liabilities            |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Total Current          | 1      | 8.0 | 76,947 | 6.0 | 87,860 | 6.5 |
| Liabilities            | 13,499 |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Employee benefit       | 29,588 | 2.0 | 26,241 | 2.1 | -      | -   |
| obligations            |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Total Liabilities      | 1      | 1   | 1      | 8.1 | 87,860 | 6.5 |
|                        | 43,087 | 0.0 | 03,188 |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Shareholders’ Equity   | 3      | 2   | 3      | 2   | 3      | 2   |
|                        | 81,146 | 6.6 | 81,146 | 9.9 | 81,146 | 8.0 |
| Share capital - Baht 1 |        |     |        |     |        |     |
| par value              |        |     |        |     |        |     |
|                        |        |     |        |     |        |     |
| Authorized shares      |        |     |        |     |        |     |
|                        |        |     |        |     |        |     |
| 381,146,251 common     |        |     |        |     |        |     |
| shares                 |        |     |        |     |        |     |
|                        |        |     |        |     |        |     |
| in 2010, 2011 and 2012 |        |     |        |     |        |     |
|                        |        |     |        |     |        |     |
| Issued and paid-up     |        |     |        |     |        |     |
| Shares                 |        |     |        |     |        |     |
|                        |        |     |        |     |        |     |
| 381,146,251 in 2010,   |        |     |        |     |        |     |
| 2011                   |        |     |        |     |        |     |
|                        |        |     |        |     |        |     |
| and 2012               |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Premium on share       | 68,000 | 4.7 | 68,000 | 5.4 | 68,000 | 5.0 |
| capital                |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| Retained earnings      | 38,115 | 2.7 | 38,115 | 3.0 | 38,115 | 2.8 |
|                        |        |     |        |     |        |     |
| -Appropriated for      |        |     |        |     |        |     |
| legal                  |        |     |        |     |        |     |
|                        |        |     |        |     |        |     |
| reserve                |        |     |        |     |        |     |
+------------------------+--------+-----+--------+-----+--------+-----+
| -Un appropriated       | 8      | 5   | 6      | 5   | 7      | 5   |
|                        | 04,390 | 6.0 | 83,011 | 3.6 | 83,709 | 7.7 |
+------------------------+--------+-----+--------+-----+--------+-----+
| Total Shareholders’    | 1,2    | 9   | 1,1    | 9   | 1,2    | 9   |
| Equity                 | 91,651 | 0.0 | 70,272 | 1.9 | 70,970 | 3.5 |
+------------------------+--------+-----+--------+-----+--------+-----+
| TOTAL LIABILITIES AND  | 1,4    | 10  | 1,2    | 10  | 1,3    | 10  |
| SHAREHOLDERS’ EQUITY   | 34,738 | 0.0 | 73,460 | 0.0 | 58,830 | 0.0 |
+------------------------+--------+-----+--------+-----+--------+-----+

Statements of Comprehensive Income

(Unit: Thousand baht)

+----------------------+--------+-----+--------+-----+--------+----+
| Particular           | Se     |     |        |     |        |    |
|                      | parate |     |        |     |        |    |
|                      | Fin    |     |        |     |        |    |
|                      | ancial |     |        |     |        |    |
|                      | Stat   |     |        |     |        |    |
|                      | ements |     |        |     |        |    |
+----------------------+--------+-----+--------+-----+--------+----+
|                      | 2012   | %   | 2011   | %   | 2010   | %  |
+----------------------+--------+-----+--------+-----+--------+----+
| Revenues from sales  | 1,4    | 10  | 1,2    | 10  | 1,3    | 1  |
|                      | 66,095 | 0.0 | 67,970 | 0.0 | 49,072 | 00 |
|                      |        |     |        |     |        | .0 |
+----------------------+--------+-----+--------+-----+--------+----+
| Cost of sales        | (1,10  | (75 | (1,04  | (82 | (1,02  | (7 |
|                      | 8,121) | .6) | 8,132) | .7) | 7,217) | 6. |
|                      |        |     |        |     |        | 1) |
+----------------------+--------+-----+--------+-----+--------+----+
| Gross profit         | 3      | 2   | 2      | 1   | 3      | 23 |
|                      | 57,974 | 4.4 | 19,838 | 7.3 | 21,855 | .9 |
+----------------------+--------+-----+--------+-----+--------+----+
| Gain on exchange     | 8,410  | 0.6 | 11,133 | 0.9 | 29,645 | 2  |
| rate                 |        |     |        |     |        | .2 |
+----------------------+--------+-----+--------+-----+--------+----+
| Other income         | 17,813 | 1.2 | 11,793 | 0.9 | 9,796  | 0  |
|                      |        |     |        |     |        | .7 |
+----------------------+--------+-----+--------+-----+--------+----+
| Profit before        | 3      | 2   | 2      | 1   | 3      | 26 |
| expenses             | 84,197 | 6.2 | 42,764 | 9.1 | 61,296 | .8 |
+----------------------+--------+-----+--------+-----+--------+----+
| Selling expenses     | (9     | (6  | (10    | (8  | (11    | (  |
|                      | 3,907) | .4) | 3,576) | .2) | 0,965) | 8. |
|                      |        |     |        |     |        | 2) |
+----------------------+--------+-----+--------+-----+--------+----+
| Administrative       | (8     | (5  | (8     | (6  | (8     | (  |
| expenses             | 6,033) | .9) | 2,634) | .5) | 9,164) | 6. |
|                      |        |     |        |     |        | 7) |
+----------------------+--------+-----+--------+-----+--------+----+
| Profit before income | 2      | 1   | 56,554 | 4.4 | 1      | 11 |
| tax                  | 04,257 | 3.9 |        |     | 61,167 | .9 |
+----------------------+--------+-----+--------+-----+--------+----+
| Income tax           | (3     | (2  | (      | (0  | (      | (  |
|                      | 2,676) | .2) | 4,012) | .3) | 1,443) | 0. |
|                      |        |     |        |     |        | 1) |
+----------------------+--------+-----+--------+-----+--------+----+
| Total comprehensive  | 1      | 1   | 52,542 | 4.1 | 1      | 11 |
|                      | 71,581 | 1.7 |        |     | 59,724 | .8 |
| income for the year  |        |     |        |     |        |    |
+----------------------+--------+-----+--------+-----+--------+----+
| Earnings per share   | 0.45   |     | 0.14   |     | 0.42   |    |
+----------------------+--------+-----+--------+-----+--------+----+
| Net profit           | 1      |     | 52,542 |     | 1      |    |
| attributable to:     | 71,581 |     |        |     | 59,724 |    |
|                      |        |     |        |     |        |    |
| Equity holders of    |        |     |        |     |        |    |
| the parent           |        |     |        |     |        |    |
+----------------------+--------+-----+--------+-----+--------+----+
| Un-appropriated      | 6      |     | 7      |     | 7      |    |
|                      | 68,778 |     | 71,460 |     | 07,021 |    |
| retained earnings    |        |     |        |     |        |    |
|                      |        |     |        |     |        |    |
| Beginning balance    |        |     |        |     |        |    |
+----------------------+--------+-----+--------+-----+--------+----+
| Appropriated for     | (5     |     | (13    |     | (9     |    |
|                      | 3,360) |     | 3,399) |     | 5,285) |    |
| -Dividend paid       |        |     |        |     |        |    |
+----------------------+--------+-----+--------+-----+--------+----+
| -Stock Dividend      | -      |     | -      |     | -      |    |
+----------------------+--------+-----+--------+-----+--------+----+
| Employee benefit     | -      |     | (2     |     | -      |    |
| obligations          |        |     | 1,825) |     |        |    |
+----------------------+--------+-----+--------+-----+--------+----+
| -Legal reserve       | -      |     | -      |     | -      |    |
+----------------------+--------+-----+--------+-----+--------+----+
| Ending balance       | 7      |     | 6      |     | 7      |    |
|                      | 86,999 |     | 68,778 |     | 71,460 |    |
+----------------------+--------+-----+--------+-----+--------+----+

Statements of Comprehensive Income

(Unit: Thousand baht)

+-----------------------+--------+-----+--------+-----+--------+----+
| Particular            | Consol |     |        |     |        |    |
|                       | idated |     |        |     |        |    |
|                       | Fin    |     |        |     |        |    |
|                       | ancial |     |        |     |        |    |
|                       | Stat   |     |        |     |        |    |
|                       | ements |     |        |     |        |    |
+-----------------------+--------+-----+--------+-----+--------+----+
|                       | 2012   | %   | 2011   | %   | 2010   | %  |
+-----------------------+--------+-----+--------+-----+--------+----+
| Revenues from sales   | 1,4    | 10  | 1,2    | 10  | 1,3    | 1  |
|                       | 91,529 | 0.0 | 93,386 | 0.0 | 67,578 | 00 |
|                       |        |     |        |     |        | .0 |
+-----------------------+--------+-----+--------+-----+--------+----+
| Cost of sales         | (1,11  | (74 | (1,04  | (81 | (1,02  | (7 |
|                       | 0,786) | .5) | 9,127) | .1) | 8,859) | 5. |
|                       |        |     |        |     |        | 2) |
+-----------------------+--------+-----+--------+-----+--------+----+
| Gross profit          | 3      | 2   | 2      | 1   | 3      | 24 |
|                       | 80,743 | 5.5 | 44,259 | 8.9 | 38,719 | .8 |
+-----------------------+--------+-----+--------+-----+--------+----+
| Gain on exchange rate | 11,596 | 0.8 | 12,782 | 1.0 | 33,429 | 2  |
|                       |        |     |        |     |        | .4 |
+-----------------------+--------+-----+--------+-----+--------+----+
| Other income          | 17,738 | 1.2 | 11,604 | 0.9 | 9,867  | 0  |
|                       |        |     |        |     |        | .7 |
+-----------------------+--------+-----+--------+-----+--------+----+
| Profit before         | 4      | 2   | 2      | 2   | 3      | 27 |
| expenses              | 10,077 | 7.5 | 68,645 | 0.8 | 82,015 | .9 |
+-----------------------+--------+-----+--------+-----+--------+----+
| Selling expenses      | (11    | (7  | (12    | (9  | (12    | (  |
|                       | 0,222) | .4) | 0,368) | .3) | 8,365) | 9. |
|                       |        |     |        |     |        | 4) |
+-----------------------+--------+-----+--------+-----+--------+----+
| Administrative        | (9     | (6  | (8     | (6  | (9     | (  |
| expenses              | 1,422) | .1) | 7,559) | .8) | 4,019) | 6. |
|                       |        |     |        |     |        | 8) |
+-----------------------+--------+-----+--------+-----+--------+----+
| Profit before income  | 2      | 1   | 60,718 | 4.7 | 1      | 11 |
| tax                   | 08,433 | 4.0 |        |     | 59,631 | .7 |
+-----------------------+--------+-----+--------+-----+--------+----+
| Income tax            | (3     | (2  | (      | (0  | (      | (  |
|                       | 3,695) | .3) | 4,922) | .4) | 1,443) | 0. |
|                       |        |     |        |     |        | 1) |
+-----------------------+--------+-----+--------+-----+--------+----+
| Total comprehensive   | 1      | 1   | 55,796 | 4.3 | 1      | 11 |
|                       | 74,738 | 1.7 |        |     | 58,188 | .6 |
| income for the year   |        |     |        |     |        |    |
+-----------------------+--------+-----+--------+-----+--------+----+
| Earnings per share    | 0.46   |     | 0.15   |     | 0.42   |    |
+-----------------------+--------+-----+--------+-----+--------+----+
| Net profit            | 1      |     | 55,796 |     | 1      |    |
| attributable to:      | 74,738 |     |        |     | 58,188 |    |
|                       |        |     |        |     |        |    |
| Equity holders of the |        |     |        |     |        |    |
| parent                |        |     |        |     |        |    |
+-----------------------+--------+-----+--------+-----+--------+----+
| Un-appropriated       | 6      |     | 7      |     | 7      |    |
|                       | 83,011 |     | 83,709 |     | 20,806 |    |
| retained earnings     |        |     |        |     |        |    |
|                       |        |     |        |     |        |    |
| Beginning balance     |        |     |        |     |        |    |
+-----------------------+--------+-----+--------+-----+--------+----+
| Appropriated for      | (5     |     | (13    |     | (9     |    |
|                       | 3,360) |     | 3,399) |     | 5,285) |    |
| -Dividend paid        |        |     |        |     |        |    |
+-----------------------+--------+-----+--------+-----+--------+----+
| -Stock Dividend       | -      |     | -      |     | -      |    |
+-----------------------+--------+-----+--------+-----+--------+----+
| Employee benefit      | -      |     | (2     |     | -      |    |
| obligations           |        |     | 3,095) |     |        |    |
+-----------------------+--------+-----+--------+-----+--------+----+
| -Legal reserve        | -      |     | -      |     | -      |    |
+-----------------------+--------+-----+--------+-----+--------+----+
| Ending balance        | 8      |     | 6      |     | 7      |    |
|                       | 04,389 |     | 83,011 |     | 83,709 |    |
+-----------------------+--------+-----+--------+-----+--------+----+

STATEMENTS OF CASH FLOWS

(Unit: Thousand baht)

+-------------------------------------------+-------+-------+--------+
| Particular                                | Sep   |       |        |
|                                           | arate |       |        |
|                                           | F/S.  |       |        |
+-------------------------------------------+-------+-------+--------+
|                                           | 2012  | 2011  | 2010   |
+-------------------------------------------+-------+-------+--------+
| Cash flows from operating activities:     | 20    | 5     | 1      |
|                                           | 4,257 | 6,554 | 61,167 |
| Profit before income tax                  |       |       |        |
+-------------------------------------------+-------+-------+--------+
| Adjustments to reconcile net profit to    | 1     | (469) | (44)   |
| net cash                                  |       |       |        |
|                                           |       |       |        |
| provided by operating activities          |       |       |        |
|                                           |       |       |        |
| Unrealized gain on exchange rate          |       |       |        |
+-------------------------------------------+-------+-------+--------+
| Reversal of doubtful accounts             | (447) | 320   | (7)    |
+-------------------------------------------+-------+-------+--------+
| Reversal of loss on diminution of         | (1    | 4,700 | (583)  |
| inventories                               | ,440) |       |        |
+-------------------------------------------+-------+-------+--------+
| Loss(gain) on disposal of equipment and   | (3    | (62)  | (665)  |
| written off                               | ,214) |       |        |
+-------------------------------------------+-------+-------+--------+
| Depreciation                              | 6     | 6     | 68,140 |
|                                           | 1,368 | 6,604 |        |
+-------------------------------------------+-------+-------+--------+
| Amortization of computer software         | -     | -     | 182    |
+-------------------------------------------+-------+-------+--------+
| Impairment of assets                      | 4,679 | -     | -      |
+-------------------------------------------+-------+-------+--------+
| Provisions for employee benefit           | 3,650 | 3,074 | -      |
| obligations                               |       |       |        |
+-------------------------------------------+-------+-------+--------+
| Profit from operating activities before   | 26    | 13    | 2      |
| change                                    | 8,854 | 0,721 | 28,190 |
|                                           |       |       |        |
| in operational assets and liabilities     |       |       |        |
+-------------------------------------------+-------+-------+--------+
| Decrease (increase) in operational assets | (6    | 2,491 | (1     |
|                                           | ,556) |       | 3,648) |
| Trade accounts receivables                |       |       |        |
+-------------------------------------------+-------+-------+--------+
| Inventories                               | (19   | (31   | 92,227 |
|                                           | ,120) | ,000) |        |
+-------------------------------------------+-------+-------+--------+
| Accounts receivable-planters              | (20   | 7,043 | (      |
|                                           | ,465) |       | 9,506) |
+-------------------------------------------+-------+-------+--------+
| Other current assets                      | (176) | (498) | (606)  |
+-------------------------------------------+-------+-------+--------+
| Other non-current assets                  | 849   | (1    | 268    |
|                                           |       | ,849) |        |
+-------------------------------------------+-------+-------+--------+
| Increase (decrease) in operational        | 1     | (11   | (1     |
| liabilities                               | 9,698 | ,549) | 2,662) |
|                                           |       |       |        |
| Trade accounts payable                    |       |       |        |
+-------------------------------------------+-------+-------+--------+
| Employee benefit obligations              | (380) | -     | -      |
+-------------------------------------------+-------+-------+--------+
| Other current liabilities                 | (28)  | (932) | 1,070  |
+-------------------------------------------+-------+-------+--------+
| Cash received from operation              | 24    | 9     | 2      |
|                                           | 2,676 | 4,427 | 85,333 |
+-------------------------------------------+-------+-------+--------+
| Income tax paid                           | (19   | (1    | (67)   |
|                                           | ,955) | ,492) |        |
+-------------------------------------------+-------+-------+--------+
| Net cash provided by operating activities | 22    | 9     | 2      |
|                                           | 2,721 | 2,935 | 85,266 |
+-------------------------------------------+-------+-------+--------+
| Cash flows from Investing Activities      | (50   | 15    | (25    |
|                                           | ,000) | 0,000 | 0,000) |
| Decrease (increase) in short-term         |       |       |        |
| investments                               |       |       |        |
+-------------------------------------------+-------+-------+--------+
| Cash receipt from loan to related company | -     | -     | 24,500 |
+-------------------------------------------+-------+-------+--------+
| Proceeds from disposal of vehicle and     | 5,303 | 68    | 674    |
| equipment                                 |       |       |        |
+-------------------------------------------+-------+-------+--------+
| Cash paid for acquisition of plant and    | (38   | (26   | (4     |
| equipment                                 | ,950) | ,284) | 7,772) |
+-------------------------------------------+-------+-------+--------+
| Cash paid for acquisition of computer     | (1    | (178) | (408)  |
| software                                  | ,602) |       |        |
+-------------------------------------------+-------+-------+--------+
| Net cash provided by (use in) Investing   | (85   | 12    | (27    |
| Activities                                | ,249) | 3,606 | 3,006) |
+-------------------------------------------+-------+-------+--------+
| Cash flows from financial activities      | (53   | (133  | (9     |
|                                           | ,173) | ,297) | 5,192) |
| Cash paid for dividends                   |       |       |        |
+-------------------------------------------+-------+-------+--------+
| Net cash used in financing activities     | (53   | (133  | (9     |
|                                           | ,173) | ,297) | 5,192) |
+-------------------------------------------+-------+-------+--------+
| Net increase (decrease) in cash and       | 8     | 8     | (8     |
|                                           | 4,299 | 3,244 | 2,932) |
| cash equivalents                          |       |       |        |
+-------------------------------------------+-------+-------+--------+
| Cash and cash equivalents, Beginning of   | 24    | 15    | 2      |
| year                                      | 2,783 | 9,539 | 42,471 |
+-------------------------------------------+-------+-------+--------+
| Cash and cash equivalents, End of year    | 32    | 24    | 1      |
|                                           | 7,082 | 2,783 | 59,539 |
+-------------------------------------------+-------+-------+--------+
| Supplement disclosure of cash flows       | (42   | (24   | (4     |
| information                               | ,566) | ,425) | 6,104) |
|                                           |       |       |        |
| 1.Property, Plant and Equipment:-         | 3,617 | (1    | 1,523  |
|                                           |       | ,859) |        |
| Acquisition of plant and equipment        | (38   |       | (4     |
|                                           | ,949) | (26   | 4,581) |
| during the year                           |       | ,284) |        |
|                                           |       |       |        |
| Increase (decrease) in payable from       |       |       |        |
|                                           |       |       |        |
| acquisition of assets                     |       |       |        |
|                                           |       |       |        |
| Cash paid for acquisition of plant and    |       |       |        |
|                                           |       |       |        |
| Equipment                                 |       |       |        |
+-------------------------------------------+-------+-------+--------+
| 2.Cash paid for Dividends                 | (53   | (133  | (9     |
|                                           | ,360) | ,399) | 5,285) |
| Dividends paid                            |       |       |        |
|                                           | 187   | 102   | 93     |
| Increase in accrued dividends             |       |       |        |
|                                           | (53   | (133  | (9     |
| Cash paid for dividends                   | ,173) | ,297) | 5,192) |
+-------------------------------------------+-------+-------+--------+

STATEMENTS OF CASH FLOWS

(Unit: Thousand baht)

+-------------------------------------------+-------+-------+--------+
| Particular                                | Co    |       |        |
|                                           | nsoli |       |        |
|                                           | dated |       |        |
|                                           | F/S.  |       |        |
+-------------------------------------------+-------+-------+--------+
|                                           | 2012  | 2011  | 2010   |
+-------------------------------------------+-------+-------+--------+
| Cash flows from operating activities:     | 20    | 6     | 1      |
|                                           | 8,433 | 0,719 | 59,631 |
| Profit before income tax                  |       |       |        |
+-------------------------------------------+-------+-------+--------+
| Adjustments to reconcile net profit to    | (2)   | (631) | (35)   |
| net cash                                  |       |       |        |
|                                           |       |       |        |
| provided by operating activities          |       |       |        |
|                                           |       |       |        |
| Unrealized gain on exchange rate          |       |       |        |
+-------------------------------------------+-------+-------+--------+
| Reversal of doubtful accounts             | (446) | 320   | (7)    |
+-------------------------------------------+-------+-------+--------+
| Reversal of loss on diminution of         | (1    | 4,700 | (583)  |
| inventories                               | ,440) |       |        |
+-------------------------------------------+-------+-------+--------+
| Loss(gain) on disposal of equipment and   | (3    | (62)  | (      |
| written off                               | ,222) |       | 1,180) |
+-------------------------------------------+-------+-------+--------+
| Depreciation                              | 6     | 6     | 68,497 |
|                                           | 1,749 | 6,978 |        |
+-------------------------------------------+-------+-------+--------+
| Impairment of assets                      | 4,679 | -     | -      |
+-------------------------------------------+-------+-------+--------+
| Amortization of computer software         | -     | -     | 182    |
+-------------------------------------------+-------+-------+--------+
| Amortization of withholding tax           | -     | -     | 2      |
+-------------------------------------------+-------+-------+--------+
| Provisions for employee benefit           | 3,727 | 3,146 | -      |
| obligations                               |       |       |        |
+-------------------------------------------+-------+-------+--------+
| Profit from operating activities before   | 27    | 13    | 2      |
| change in Operational assets and          | 3,478 | 5,170 | 26,507 |
| liabilities                               |       |       |        |
+-------------------------------------------+-------+-------+--------+
| Decrease (increase) in operational assets | (2    | (3    | (      |
|                                           | ,095) | ,487) | 8,640) |
| Trade accounts receivables                |       |       |        |
+-------------------------------------------+-------+-------+--------+
| Inventories                               | (19   | (31   | 92,227 |
|                                           | ,120) | ,000) |        |
+-------------------------------------------+-------+-------+--------+
| Accounts receivable-planters              | (20   | 7,043 | (      |
|                                           | ,465) |       | 9,506) |
+-------------------------------------------+-------+-------+--------+
| Other current assets                      | (144) | (549) | (612)  |
+-------------------------------------------+-------+-------+--------+
| Other non-current assets                  | 849   | (1    | 268    |
|                                           |       | ,849) |        |
+-------------------------------------------+-------+-------+--------+
| Increase (decrease) in operational        | 2     | (11   | (1     |
| liabilities                               | 0,426 | ,802) | 2,860) |
|                                           |       |       |        |
| Trade accounts payable                    |       |       |        |
+-------------------------------------------+-------+-------+--------+
| Employee benefit obligations              | (380) | -     | -      |
+-------------------------------------------+-------+-------+--------+
| Other current liabilities                 | (93)  | (845) | 1,081  |
+-------------------------------------------+-------+-------+--------+
| Cash received from operation              | 25    | 9     | 2      |
|                                           | 2,456 | 2,681 | 88,465 |
+-------------------------------------------+-------+-------+--------+
| Income tax paid                           | (21   | (1    | (818)  |
|                                           | ,261) | ,497) |        |
+-------------------------------------------+-------+-------+--------+
| Net cash provided by operating activities | 23    | 9     | 2      |
|                                           | 1,195 | 1,184 | 87,647 |
+-------------------------------------------+-------+-------+--------+
| Cash flows from Investing Activities      | (50   | 14    | (25    |
|                                           | ,000) | 9,963 | 5,563) |
| Decrease (increase) in short-term         |       |       |        |
| investments                               |       |       |        |
+-------------------------------------------+-------+-------+--------+
| Increase in fixed deposits pledged as     | (270) | (180) | (75)   |
| collateral                                |       |       |        |
+-------------------------------------------+-------+-------+--------+
| Cash receipt from loan to related company | -     | -     | 24,500 |
+-------------------------------------------+-------+-------+--------+
| Proceeds from disposal of vehicle and     | 5,312 | 68    | 1,188  |
| equipment                                 |       |       |        |
+-------------------------------------------+-------+-------+--------+
| Cash paid for acquisition of plant and    | (38   | (26   | (4     |
| equipment                                 | ,983) | ,332) | 9,551) |
+-------------------------------------------+-------+-------+--------+
| Cash paid for acquisition of computer     | (1    | (178) | (408)  |
| software                                  | ,602) |       |        |
+-------------------------------------------+-------+-------+--------+
| Net cash provided by (used in) Investing  | (85   | 12    | (27    |
| Activities                                | ,543) | 3,341 | 9,909) |
+-------------------------------------------+-------+-------+--------+
| Cash flows from financing activities      | (53   | (133  | (9     |
|                                           | ,173) | ,297) | 5,192) |
| Cash paid for dividends                   |       |       |        |
+-------------------------------------------+-------+-------+--------+
| Net cash used in financing activities     | (53   | (133  | (9     |
|                                           | ,173) | ,297) | 5,192) |
+-------------------------------------------+-------+-------+--------+
| Net increase (decrease) in cash and cash  | 9     | 8     | (8     |
| equivalents                               | 2,479 | 1,228 | 7,454) |
+-------------------------------------------+-------+-------+--------+
| Cash and cash equivalents, Beginning of   | 26    | 18    | 2      |
| year                                      | 1,772 | 0,544 | 67,998 |
+-------------------------------------------+-------+-------+--------+
| Cash and cash equivalents, End of year    | 35    | 26    | 1      |
|                                           | 4,251 | 1,772 | 80,544 |
+-------------------------------------------+-------+-------+--------+
| Supplement disclosure of cash flows       | (42   | (24   | (4     |
| information                               | ,600) | ,473) | 7,883) |
|                                           |       |       |        |
| 1.Property, Plant and Equipment           | 3,617 | (1    | 1,523  |
|                                           |       | ,859) |        |
| Acquisition of plant and equipment        | (38   |       | (4     |
|                                           | ,983) | (26   | 6,360) |
| during the year                           |       | ,332) |        |
|                                           |       |       |        |
| Increase (decrease) in payable from       |       |       |        |
|                                           |       |       |        |
| acquisition of assets                     |       |       |        |
|                                           |       |       |        |
| Cash paid for acquisition of plant and    |       |       |        |
|                                           |       |       |        |
| Equipment                                 |       |       |        |
+-------------------------------------------+-------+-------+--------+
| 2.Cash paid for dividends                 | (53   | (133  | (9     |
|                                           | ,360) | ,399) | 5,285) |
| Dividends paid                            |       |       |        |
|                                           | 187   | 102   | 93     |
| Increase in accrued dividends             |       |       |        |
|                                           | (53   | (133  | (9     |
| Cash paid for dividends                   | ,173) | ,297) | 5,192) |
+-------------------------------------------+-------+-------+--------+

C. FINANCIAL RATIOS

+--------------------------------------+-------+------+------+-------+
| Particular                           | Sep   |      |      |       |
|                                      | arate |      |      |       |
|                                      | F/S.  |      |      |       |
+--------------------------------------+-------+------+------+-------+
|                                      | Unit  | 2012 | 2011 | 2010  |
+--------------------------------------+-------+------+------+-------+
| Liquidity Ratios                     | Time  | 9.0  | 10.9 | 10.0  |
|                                      |       |      |      |       |
| Current ratio                        |       |      |      |       |
+--------------------------------------+-------+------+------+-------+
| Quick ratio                          | Time  | 5.3  | 6.0  | 6.0   |
+--------------------------------------+-------+------+------+-------+
| Cash flow ratio                      | Time  | 2.4  | 1.2  | 3.1   |
+--------------------------------------+-------+------+------+-------+
| Account receivable turnover          | Time  | 23.9 | 22.4 | 26.1  |
+--------------------------------------+-------+------+------+-------+
| Debt collection period               | Days  | 15   | 16   | 14    |
+--------------------------------------+-------+------+------+-------+
| Inventory turnover                   | Time  | 3.2  | 3.2  | 2.9   |
+--------------------------------------+-------+------+------+-------+
| Good distribution ratio period       | Days  | 113  | 113  | 124   |
+--------------------------------------+-------+------+------+-------+
| Account payable turnover             | Time  | 29.7 | 28.6 | 24.0  |
+--------------------------------------+-------+------+------+-------+
| Debt payment period                  | Days  | 12   | 13   | 15    |
+--------------------------------------+-------+------+------+-------+
| Cash cycle                           | Days  | 116  | 116  | 123   |
+--------------------------------------+-------+------+------+-------+
| Profitability Ratios                 | %     | 24.4 | 17.3 | 23.9  |
|                                      |       |      |      |       |
| Gross profit margin                  |       |      |      |       |
+--------------------------------------+-------+------+------+-------+
| Operation profit margin              | %     | 12.1 | 2.7  | 9.0   |
+--------------------------------------+-------+------+------+-------+
| Cash ratio against making profit     | %     | 1    | 2    | 234.4 |
|                                      |       | 25.1 | 76.4 |       |
+--------------------------------------+-------+------+------+-------+
| Net profit margin                    | %     | 11.7 | 4.1  | 11.8  |
+--------------------------------------+-------+------+------+-------+
| Return on equity                     | %     | 14.1 | 4.4  | 13.0  |
+--------------------------------------+-------+------+------+-------+
| Efficiency Ratios                    | %     | 12.9 | 4.0  | 12.1  |
|                                      |       |      |      |       |
| Return on total assets               |       |      |      |       |
+--------------------------------------+-------+------+------+-------+
| Return on fixed assets               | %     | 59.2 | 27.9 | 49.5  |
+--------------------------------------+-------+------+------+-------+
| Total assets turnover                | Time  | 1.1  | 1.0  | 1.1   |
+--------------------------------------+-------+------+------+-------+
| Financial Policy Ratios              | Time  | 0.1  | 0.1  | 0.1   |
|                                      |       |      |      |       |
| Ratio debt against equity part       |       |      |      |       |
+--------------------------------------+-------+------+------+-------+
| Dividends paid rate                  | %     | 62.2 | 1    | 83.5  |
|                                      |       |      | 01.6 |       |
+--------------------------------------+-------+------+------+-------+

+--------------------------------------+-------+------+------+-------+
| Particular                           | Co    |      |      |       |
|                                      | nsoli |      |      |       |
|                                      | dated |      |      |       |
|                                      | F/S.  |      |      |       |
+--------------------------------------+-------+------+------+-------+
|                                      | Unit  | 2012 | 2011 | 2010  |
+--------------------------------------+-------+------+------+-------+
| Liquidity Ratios                     | Time  | 9.1  | 11.0 | 10.1  |
|                                      |       |      |      |       |
| Current ratio                        |       |      |      |       |
+--------------------------------------+-------+------+------+-------+
| Quick ratio                          | Time  | 5.5  | 6.1  | 6.1   |
+--------------------------------------+-------+------+------+-------+
| Cash flow ratio                      | Time  | 2.4  | 1.1  | 3.1   |
+--------------------------------------+-------+------+------+-------+
| Account receivable turnover          | Time  | 25.0 | 24.0 | 28.1  |
+--------------------------------------+-------+------+------+-------+
| Debt collection period               | Days  | 14   | 15   | 13    |
+--------------------------------------+-------+------+------+-------+
| Inventory turnover                   | Time  | 3.2  | 3.2  | 2.9   |
+--------------------------------------+-------+------+------+-------+
| Good distribution ratio period       | Days  | 113  | 113  | 124   |
+--------------------------------------+-------+------+------+-------+
| Account payable turnover             | Time  | 29.8 | 28.6 | 24.0  |
+--------------------------------------+-------+------+------+-------+
| Debt payment period                  | Days  | 12   | 13   | 15    |
+--------------------------------------+-------+------+------+-------+
| Cash cycle                           | Days  | 115  | 115  | 122   |
+--------------------------------------+-------+------+------+-------+
| Profitability Ratios                 | %     | 25.5 | 18.9 | 24.8  |
|                                      |       |      |      |       |
| Gross profit margin                  |       |      |      |       |
+--------------------------------------+-------+------+------+-------+
| Operation profit margin              | %     | 12.0 | 2.8  | 8.5   |
+--------------------------------------+-------+------+------+-------+
| Cash ratio against making profit     | %     | 1    | 2    | 247.3 |
|                                      |       | 29.1 | 51.0 |       |
+--------------------------------------+-------+------+------+-------+
| Net profit margin                    | %     | 11.7 | 4.3  | 11.6  |
+--------------------------------------+-------+------+------+-------+
| Return on equity                     | %     | 14.2 | 4.6  | 12.8  |
+--------------------------------------+-------+------+------+-------+
| Efficiency Ratios                    | %     | 12.9 | 4.2  | 11.9  |
|                                      |       |      |      |       |
| Return on total assets               |       |      |      |       |
+--------------------------------------+-------+------+------+-------+
| Return on fixed assets               | %     | 60.0 | 28.7 | 49.1  |
+--------------------------------------+-------+------+------+-------+
| Total assets turnover                | Time  | 1.1  | 1.0  | 1.1   |
+--------------------------------------+-------+------+------+-------+
| Financial Policy Ratios              | Time  | 0.1  | 0.1  | 0.1   |
|                                      |       |      |      |       |
| Ratio debt against equity part       |       |      |      |       |
+--------------------------------------+-------+------+------+-------+
| Dividends paid rate                  | %     | 61.1 | 95.6 | 84.3  |
+--------------------------------------+-------+------+------+-------+

2) Explanation and analysis financial situation

and operation result:

a)  Practical result in business proceeding

  In the year 2012, the company had sale volume amount 26,000 metric
  tons, increased from previous year amount 300 metric tons or 1.2% and
  lower than sale plan amount 1,000 metric tons or 3.7%.

b)  Operation result

In the year 2012, the company gained net profit-consolidated 174.7
million baht increased from the year 2011 amount 118.9 million baht or
213.2%, having details as following:

(Unit: Million baht)

  ------------------------------------------------------------ ----------
  Sales increased                                              198.1

  Cost of sales (increased)                                    (60.0)

  Gross profit increased                                       138.1

  Gain on exchange rate (decreased)                            (2.7)

  Other income increased                                       6.0

  Profit before expenses increased                             141.4

  Selling & Administrative expenses decreased                  6.3

  Income tax (increased)                                       (28.7)

  Total Expenses (increased)                                   (22.4)

  Net Profit Increased - Separate                              119.0

  Net Profit from Subsidiary (Agrifood) (decreased)            (0.1)

  Net Profit Increased - Consolidated                          118.9
  ------------------------------------------------------------ ----------

Important points with change on items

1.  Income from sales increased 198.1 million baht happened from sale
    price increased 156.4 million baht, from exchange rate increased
    23.6 million baht and from sale volume increased 18.1 million baht.

2.  Cost of Sales increased happened from sale volume increased 300
    metric tons and increased on raw material cost, wages, electricity
    charges chiefly.

3.  Other incomes increased from interest income and sold equipment from
    impairment.

4.  Selling and administrative expenses decreased which happened from
    freight charges decreased.

5.  Income tax increased which happened from the company beyond from
    obtained investment promotion and paid income tax in rate 50% of
    normal rate from profit of investment promotion certificate no.
    1465/1999, remaining profit paid in normal rate.

c)  Financial situation

  At December 31, 2012, the company had assets amount 1,413.4 million
  baht increased from previous year amount 157.7 million baht, this was
  an increased of cash, cash equivalents and short term investment
  amount 134.3 million baht, trade and other receivables increased
  amount 6.6 million baht, accounts receivable-planters increased 20.9
  million baht, inventories increased 20.5 million baht, Property, plant
  and equipment decreased (25.5) million baht and other assets increased
  amount 0.9 million baht.

  Liabilities increased 39.4 million baht happened from trade and other
  payables increased 23.3 million baht, accrued income tax increased
  12.7 million baht, other liabilities increased 3.4 million baht and
  shareholders’ equity increased 118.3 million baht.

Current ratio of company is at level 9.0 and quick ratio is

at level 5.3 whereas ratio of company liabilities against

shareholders equity is at level 0.11: 1 only.

  The Company has its expense for investment in fixed assets amount 38.9
  million baht by using financial from investment sources obtained from
  the company operation.

For subsidiary company, in the year 2012, Agrifood

Processing Co., Ltd., had total assets amount 58.2 million baht,

total liabilities amount 17.5 million baht and shareholders’ equity

amount 40.7 million baht.

d) Factor and main influence that may affect on operation or

financial situation in future

In the year 2013, the company believes that it could

export approx. 26,500 metric tons and estimates that the operation

result may lower than business result in the year 2012 due to

problem of adjusting to raise the low wages, trend on strong value

of baht value and adjustment of raw material costs.