Attached 3

25 Financial instruments (Cont’d)

b) Credit risk

  The Company has no significant concentrations of credit risk. The
  Company has policy in place to ensure that sales of products and
  services are made to customers with an appropriate credit history.
  Derivative counterparties and cash transactions are limited to high
  credit quality financial institution.

c) Fair values

  The carrying amounts of the following financial assets and financial
  liabilities approximate their fair values: cash and cash equivalents,
  short-term investments held to maturity, trade accounts receivable,
  trade accounts payable and other accounts payable due to short
  maturities of these investments.

26 Related party transactions

  Individuals or enterprises 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. Associates and individuals owning, directly or indirectly, an
  interest in the voting power of the Company that gives them
  significant influence over the Company, 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.

  The Company had the significant transactions with its major
  shareholder, Stanley Electric Company Limited Group, incorporated in
  Japan which holds 29.95% interest in the Company’s share capital. The
  Company also had significant transactions with a group of individual
  shareholders who are members of the Company’s management who hold
  29.08% interest in the Company’s share capital. Stanley Electric Group
  comprises Stanley Electric Company Limited and related companies.

  Purchases from related parties are specific materials or materials
  which are manufactured on a large scale at one source for cost saving
  benefits. Sales to related parties mainly represent export sales, and
  selling price is determined based on manufacturing cost plus a certain
  margin. A royalty fee is charged at 3% of sales less materials cost
  imported from a related party in accordance with the agreement. A
  design and development fee and other fees are charged in the normal
  course of business and are presented as other accounts payable -
  related parties.

26 Related party transactions (Cont’d)

  The following significant transactions were carried out with related
  parties:

+------------------------------------------------+----------+----------+
|   For the years ended 31 March                 | 2012     | 2011     |
+------------------------------------------------+----------+----------+
|                                                | Baht     | Baht     |
+------------------------------------------------+----------+----------+
|                                                |          |          |
+------------------------------------------------+----------+----------+
|   Sales                                        |          |          |
+------------------------------------------------+----------+----------+
|   Stanley Electric Group companies             | 365      | 419      |
|                                                | ,324,042 | ,208,314 |
+------------------------------------------------+----------+----------+
|   Companies related by way of the              |          |          |
+------------------------------------------------+----------+----------+
|   Company’s management and directors           |          |          |
+------------------------------------------------+----------+----------+
|   as shareholders, or by way of common         | 172      | 136      |
|   directors                                    | ,485,189 | ,289,127 |
+------------------------------------------------+----------+----------+
|   Associates                                   | 186      | 138      |
|                                                | ,205,063 | ,485,800 |
+------------------------------------------------+----------+----------+
|                                                |          |          |
+------------------------------------------------+----------+----------+
|                                                | 724      | 693      |
|                                                | ,014,294 | ,983,241 |
+------------------------------------------------+----------+----------+
|                                                |          |          |
+------------------------------------------------+----------+----------+
|   Technical assistance income (other income)   |          |          |
+------------------------------------------------+----------+----------+
|   Stanley Electric Group companies             | 1        | -        |
|                                                | ,140,182 |          |
+------------------------------------------------+----------+----------+
|   Associates                                   | 18,400   | -        |
+------------------------------------------------+----------+----------+
|                                                |          |          |
+------------------------------------------------+----------+----------+
|                                                | 1        | -        |
|                                                | ,158,582 |          |
+------------------------------------------------+----------+----------+
|                                                |          |          |
+------------------------------------------------+----------+----------+
|   Royalty income (other income)                |          |          |
+------------------------------------------------+----------+----------+
|   Associates                                   | 278,981  | 284,282  |
+------------------------------------------------+----------+----------+
|                                                |          |          |
+------------------------------------------------+----------+----------+
|   Dividend income                              |          |          |
+------------------------------------------------+----------+----------+
|   Stanley Electric Group companies             | 62       | 50       |
|                                                | ,882,134 | ,080,269 |
+------------------------------------------------+----------+----------+
|   Companies related by way of the              |          |          |
+------------------------------------------------+----------+----------+
|   Company’s management and directors           |          |          |
+------------------------------------------------+----------+----------+
|   as shareholders, or by way of common         | 605,899  | 822,775  |
|   directors                                    |          |          |
+------------------------------------------------+----------+----------+
|   Associates                                   | 41       | 25       |
|                                                | ,108,752 | ,913,219 |
+------------------------------------------------+----------+----------+
|                                                |          |          |
+------------------------------------------------+----------+----------+
|                                                | 104      | 76       |
|                                                | ,596,785 | ,816,263 |
+------------------------------------------------+----------+----------+
|                                                |          |          |
+------------------------------------------------+----------+----------+
|   Other income                                 |          |          |
+------------------------------------------------+----------+----------+
|   Stanley Electric Group companies             | 1        | 1        |
|                                                | ,596,069 | ,437,909 |
+------------------------------------------------+----------+----------+
|   Associates                                   | 22,760   | 43,349   |
+------------------------------------------------+----------+----------+
|                                                |          |          |
+------------------------------------------------+----------+----------+
|                                                | 1        | 1        |
|                                                | ,618,829 | ,481,258 |
+------------------------------------------------+----------+----------+
|                                                |          |          |
+------------------------------------------------+----------+----------+
|   Purchases of goods and services              |          |          |
+------------------------------------------------+----------+----------+
|   Stanley Electric Group companies             | 1,166    | 805      |
|                                                | ,121,648 | ,440,313 |
+------------------------------------------------+----------+----------+
|   Companies related by way of the              |          |          |
+------------------------------------------------+----------+----------+
|   Company’s management and directors           |          |          |
+------------------------------------------------+----------+----------+
|   as shareholders, or by way of common         | 239      | 275      |
|   directors                                    | ,597,423 | ,192,665 |
+------------------------------------------------+----------+----------+
|   Associates                                   | 40       | 21       |
|                                                | ,109,715 | ,341,453 |
+------------------------------------------------+----------+----------+
|                                                |          |          |
+------------------------------------------------+----------+----------+
|                                                | 1,445    | 1,101    |
|                                                | ,828,786 | ,974,431 |
+------------------------------------------------+----------+----------+

26 Related party transactions (Cont’d)

  The following significant transactions were carried out with related
  parties: (Cont’d)

+------------------------------------------------+----------+----------+
|   For the years ended 31 March                 | 2012     | 2011     |
+------------------------------------------------+----------+----------+
|                                                | Baht     | Baht     |
+------------------------------------------------+----------+----------+
|                                                |          |          |
+------------------------------------------------+----------+----------+
|   Royalty fees                                 |          |          |
+------------------------------------------------+----------+----------+
|   Stanley Electric Group companies             | 216      | 243      |
|                                                | ,871,149 | ,180,357 |
+------------------------------------------------+----------+----------+
|                                                |          |          |
+------------------------------------------------+----------+----------+
|   Design and development fee                   |          |          |
+------------------------------------------------+----------+----------+
|   Stanley Electric Group companies             | 45       | 49       |
|                                                | ,006,700 | ,853,307 |
+------------------------------------------------+----------+----------+
|                                                |          |          |
+------------------------------------------------+----------+----------+
|   Technical fee                                |          |          |
+------------------------------------------------+----------+----------+
|   Stanley Electric Group companies             | 9        | 8        |
|                                                | ,117,411 | ,006,538 |
+------------------------------------------------+----------+----------+
|                                                |          |          |
+------------------------------------------------+----------+----------+
|   Training fee                                 |          |          |
+------------------------------------------------+----------+----------+
|   Stanley Electric Group companies             | 1        | 24       |
|                                                | ,668,647 | ,436,247 |
+------------------------------------------------+----------+----------+
|                                                |          |          |
+------------------------------------------------+----------+----------+
|   Commission                                   |          |          |
+------------------------------------------------+----------+----------+
|   Stanley Electric Group companies             | 6        | 528,559  |
|                                                | ,886,708 |          |
+------------------------------------------------+----------+----------+

+------------------------------------------------+----------+----------+
|   Directors’ and managements’ remuneration     | 48       | 47       |
|                                                | ,714,381 | ,361,153 |
|   Short-term benefits                          |          |          |
+------------------------------------------------+----------+----------+

  Short-term benefits comprise salary, bonus and other welfares.

  The amounts due to and from related parties are mainly denominated in
  foreign currencies and relate to purchases and sales transactions. The
  outstanding balances as at 31 March 2012 and 2011 are as follows:

+------------------------------------------------+----------+----------+
|                                                | 2012     | 2011     |
+------------------------------------------------+----------+----------+
|                                                | Baht     | Baht     |
+------------------------------------------------+----------+----------+
|                                                |          |          |
+------------------------------------------------+----------+----------+
|   Trade accounts receivable - related parties  |          |          |
+------------------------------------------------+----------+----------+
|   Stanley Electric Group companies             | 42       | 29       |
|                                                | ,291,766 | ,501,236 |
+------------------------------------------------+----------+----------+
|   Companies related by way of the Company’s    |          |          |
|   management                                   |          |          |
+------------------------------------------------+----------+----------+
|   and directors as shareholders, or by way of  | 69       | 35       |
|   common directors                             | ,717,984 | ,105,287 |
+------------------------------------------------+----------+----------+
|   Associates                                   | 20       | 14       |
|                                                | ,818,524 | ,923,809 |
+------------------------------------------------+----------+----------+
|                                                |          |          |
+------------------------------------------------+----------+----------+
|                                                | 132      | 79       |
|                                                | ,828,274 | ,530,332 |
+------------------------------------------------+----------+----------+
|                                                |          |          |
+------------------------------------------------+----------+----------+
|   Trade accounts payable - related parties     |          |          |
+------------------------------------------------+----------+----------+
|   Stanley Electric Group companies             | 119      | 158      |
|                                                | ,901,154 | ,963,719 |
+------------------------------------------------+----------+----------+
|   Companies related by way of the Company’s    |          |          |
|   management                                   |          |          |
+------------------------------------------------+----------+----------+
|   and directors as shareholders, or by way of  | 27       | 27       |
|   common directors                             | ,717,595 | ,813,373 |
+------------------------------------------------+----------+----------+
|   Associates                                   | 9        | 4        |
|                                                | ,002,302 | ,930,585 |
+------------------------------------------------+----------+----------+
|                                                |          |          |
+------------------------------------------------+----------+----------+
|                                                | 156      | 191      |
|                                                | ,621,051 | ,707,677 |
+------------------------------------------------+----------+----------+
|                                                |          |          |
+------------------------------------------------+----------+----------+
|   Other accounts payable - related parties     |          |          |
+------------------------------------------------+----------+----------+
|   Stanley Electric Group companies             | 186      | 171      |
|                                                | ,129,113 | ,195,962 |
+------------------------------------------------+----------+----------+