Muramoto Electron (Thailand) Public Company Limited and its Subsidiary. Interim financial statements and Review Report of Certified Public Accountant

Transcription

1 Muramoto Electron (Thailand) Public Company Limited and its Subsidiary Interim and Review Report of Certified Public Accountant For the three-month and six-month periods ended 31 March 2011

2 Review Report of Certified Public Accountant To the Board of Directors of Muramoto Electron (Thailand) Public Company Limited I have reviewed the accompanying consolidated and separate balance sheets as at 31 March 2011, and the related statements of income for the three-month and six-month periods then ended, and the related statements of changes in equity and cash flows for the six-month period ended 31 March 2011 of Muramoto Electron (Thailand) Public Company Limited and its subsidiary, and of Muramoto Electron (Thailand) Public Company Limited, respectively. The Company s management is responsible for the correctness and completeness of information presented in these. My responsibility is to issue a report on these based on my reviews. The consolidated and separate statements of income for the three-month and six-month periods then ended, and the related statements of changes in equity and cash flows for the six-month period ended 31 March 2010 of Muramoto Electron (Thailand) Public Company Limited and its subsidiary, and of Muramoto Electron (Thailand) Public Company Limited, respectively, were reviewed by another auditor whose report dated 14 May 2010 stated that nothing had come to his attention that caused him to believe that those were not presented fairly, in all material respects, in accordance with generally accepted accounting principles. I conducted my reviews in accordance with the auditing standard on review engagements. This Standard requires that I plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit in accordance with generally accepted auditing standards. I have not performed an audit and, accordingly, I do not express an audit opinion on the reviewed. Based on my reviews, nothing has come to my attention that causes me to believe that the financial statements referred to above are not presented fairly, in all material respects, in accordance with generally accepted accounting principles.

3 The consolidated and separate for the year ended 30 September 2010 of Muramoto Electron (Thailand) Public Company Limited and its subsidiary, and of Muramoto Electron (Thailand) Public Company Limited, respectively, were audited by another auditor in accordance with generally accepted auditing standards whose report dated 26 November 2010 expressed an unqualified opinion on those statements. The consolidated and separate balance sheets as at 30 September 2010, which are included in the accompanying for comparative purposes, are components of those financial statements. (Sureerat Thongarunsang) Certified Public Accountant Registration No KPMG Phoomchai Audit Ltd. Bangkok 13 May

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5 Balance sheets As at 31 March 2011 and 30 September 2010 Assets Note 31 March 30 September 31 March 30 September (Unaudited) (Unaudited) Current assets Cash and cash equivalents 1,794,521 1,928,332 1,710,206 1,915,690 Trade accounts receivable 3, 4 2,442,618 2,835,599 2,184,116 2,494,590 Other accounts receivable from related parties 3 2, ,338 6,495 Short-term loans to related party , ,000 Inventories 1,171,005 1,005, , ,996 Other current assets 43,505 25,132 32,473 4,307 Total current assets 5,453,987 5,795,376 5,171,593 5,491,078 Non-current assets Restricted fixed deposit 4,622 4, Investment in subsidiary , ,994 Long-term loan to related party 3 90,476-90,476 - Property, plant and equipment 6 4,114,002 4,145,785 2,525,730 2,563,548 Intangible assets 1,251 1, Other non-current assets 11,501 11,762 11,167 11,478 Total non-current assets 4,221,852 4,163,855 2,927,367 2,875,020 Total assets 9,675,839 9,959,231 8,098,960 8,366,098 The accompanying notes are an integral part of these financial staements. 3

6 Balance sheets As at 31 March 2011 and 30 September 2010 Liabilities and equity Note 31 March 30 September 31 March 30 September (Unaudited) (Unaudited) Current liabilities Trade accounts and notes payable 3, 7 2,502,968 2,527,892 2,108,587 2,135,612 Other account payable to related parties 3 41, ,917 34, ,518 Payable for property, plant and equipment 124, , Current portion of long-term loan from financial institutions 79, ,334 79, ,334 Income tax payable 100,191 70,203 91,864 70,203 Other current liabilities 280, , , ,933 Total current liabilities 3,129,029 3,338,016 2,565,650 2,739,600 Equity Share capital Authorised share capital 250, , , ,000 Issued and paid-up share capital 220, , , ,000 Treasury shares 8 (154,818) (154,818) (154,818) (154,818) Addition paid-in capital Premium on ordinary shares 653, , , ,700 Retained earnings Appropriated Legal reserve 55,000 55,000 25,000 25,000 Treasury shares reserve 8 154, , , ,818 Unappropriated 5,618,110 5,692,515 4,634,610 4,727,798 Total equity 6,546,810 6,621,215 5,533,310 5,626,498 Total liabilities and equity 9,675,839 9,959,231 8,098,960 8,366,098 The accompanying notes are an integral part of these financial staements. 4

7 Statements of income For the three-month periods ended 31 March 2011 and 2010 (Unaudited) Note Income Revenue from sale of goods 3 4,430,865 4,161,292 3,745,672 3,423,508 Other income 3 59,903 27,006 45,390 22,293 Net foreign exchange gain 19,246-15,982 - Total income 4,510,014 4,188,298 3,807,044 3,445,801 Expenses Cost of sale of goods 3 4,181,284 3,823,207 3,526,586 3,090,578 Selling expenses 3 47,567 48,435 44,319 45,237 Administrative expenses 3 111, ,797 94, ,421 Management benefit expenses 6,940 5,830 6,340 5,230 Net foreign exchange loss - 23,619-28,608 Total expenses 4,347,710 4,018,888 3,671,333 3,273,074 Profit before finance costs and income tax expense 162, , , ,727 Finance costs (480) (959) (480) (959) Profit before income tax expense 161, , , ,768 Income tax expense (46,721) (48,800) (38,357) (48,800) Net profit for the period 115, ,651 96, ,968 Basic earnings per share (Baht) The accompanying notes are an integral part of these. 5

8 Statements of income For the six-month periods ended 31 March 2011 and 2010 (Unaudited) Note Income Revenue from sale of goods 3 8,902,359 8,202,283 7,511,281 6,722,472 Other income 3 129,453 62, ,039 54,409 Net foreign exchange gain 38,365-29,389 - Total income 9,070,177 8,264,387 7,648,709 6,776,881 Expenses Cost of sale of goods 3 8,373,627 7,516,890 7,023,836 6,074,413 Selling expenses 3 76, ,604 67,239 95,867 Administrative expenses 3 220, , , ,053 Management benefit expenses 15,312 15,181 14,112 13,981 Net foreign exchange loss - 13,581-23,563 Total expenses 8,685,117 7,877,369 7,291,904 6,407,877 Profit before finance costs and income tax expense 385, , , ,004 Finance costs (1,033) (1,981) (982) (1,981) Profit before income tax expense 384, , , ,023 Income tax expense (103,164) (98,078) (93,743) (98,078) Net profit for the period 280, , , ,945 Basic earnings per share (Baht) The accompanying notes are an integral part of these. 6

9 Statements of changes in equity For the six-month periods ended 31 March 2011 and 2010 (Unaudited) Issued and paid-up Reserve Treasury Share Retained earnings Treasury shares Note share capital shares premium Legal reserve reserve Unappropriated Total Balance at 1 October ,000 (119,730) 653,700 55, ,730 5,069,098 5,997,798 Net profit for the period , ,959 Purchase of treasury shares 8 - (35,088) (35,088) Transfer to treasury shares reserve ,088 (35,088) - Dividends (104,491) (104,491) Balance at 31 March ,000 (154,818) 653,700 55, ,818 5,216,478 6,145,178 Balance at 1 October ,000 (154,818) 653,700 55, ,818 5,692,515 6,621,215 Net profit for the period , ,863 Dividends (355,268) (355,268) Balance at 31 March ,000 (154,818) 653,700 55, ,818 5,618,110 6,546,810 The accompanying notes are an integral part of these. 7

10 Statements of changes in equity For the six-month periods ended 31 March 2011 and 2010 (Unaudited) Issued and paid-up Reserve Treasury Share Retained earnings Treasury shares Note share capital shares premium Legal reserve reserve Unappropriated Total Balance at 1 October ,000 (119,730) 653,700 25, ,730 4,139,077 5,037,777 Net profit for the period , ,945 Purchase of treasury shares 8 - (35,088) (35,088) Transfer to treasury shares reserve ,088 (35,088) - Dividends (104,491) (104,491) Balance at 31 March ,000 (154,818) 653,700 25, ,818 4,268,443 5,167,143 Balance at 1 October ,000 (154,818) 653,700 25, ,818 4,727,798 5,626,498 Net profit for the period , ,080 Dividends (355,268) (355,268) Balance at 31 March ,000 (154,818) 653,700 25, ,818 4,634,610 5,533,310 The accompanying notes are an integral part of these. 8

11 Statements of cash flows For the six-month periods ended 31 March 2011 and 2010 (Unaudited) Cash flows from operating activities Profit for the period 280, , , ,945 Adjustments for Depreciation and amortisation 333, , , ,232 Finance costs 1,033 1, ,981 Unrealised (gain) loss on exchange rate (7,078) 18, ,687 Provision for net realisable value of inventories 11,233 14,255 7,839 14,712 Loss (gain) on disposal of property, plant and equipment (424) 2,714 (424) 2,714 Provision for decline in value of golf membership Income tax expense 103,164 98,078 93,743 98, , , , ,349 Changes in operating assets and liabilities Trade accounts receivable 387,866 (70,096) 307,015 (96,701) Other accounts receivable from related parties (1,843) 432 4,157 6,432 Inventories (176,420) (42,230) (90,303) (28,032) Other current assets (18,373) 5,703 (28,166) 3,404 Other non-current assets Trade accounts and notes payable (18,951) 24,269 (22,890) 6,107 Other account payable to related parties (90,904) (29,952) (83,678) (26,256) Other current liabilities (10,144) 38,195 1,324 29,814 Income tax paid (73,176) (11,539) (72,082) (11,539) Net cash provided by operating activities 720, , , ,351 Cash flows from investing activities Loans to related parties (91,674) - (181,674) (40,000) Purchases of property, plant and equipment (328,275) (352,176) (180,925) (158,713) Sales of property, plant and equipment 3,738 1,394 3,738 1,394 Purchases of intangible assets (83) Net cash used in investing activities (416,294) (350,782) (358,861) (197,319) The accompanying notes are an integral part of these. 9

12 Statements of cash flows For the six-month periods ended 31 March 2011 and 2010 (Unaudited) Cash flows from financing activities Interest paid (1,050) (1,989) (998) (1,989) Repayment of borrowings (81,955) (78,181) (81,955) (78,181) Dividend paid (355,268) (104,491) (355,268) (104,491) Purchase of treasury shares - (35,088) - (35,088) Net cash used in financing activities (438,273) (219,749) (438,221) (219,749) Net increase (decrease) in cash and cash equivalents (134,073) 73,376 (205,748) 101,283 Cash and cash equivalents at beginning of period 1,928,332 1,643,213 1,915,690 1,583,345 Effects of exchange rate changes on balances held in foreign currencies 262 (30,700) 264 (30,696) Cash and cash equivalents at end of period 1,794,521 1,685,889 1,710,206 1,653,932 The accompanying notes are an integral part of these. 10

13 Notes to the interim Note Contents 1 General information 2 Basis of preparation of the 3 Related party transactions and balances 4 Trade accounts receivable 5 Investment in subsidiary 6 Property, plant and equipment 7 Trade accounts and notes payable 8 Treasury shares and reserve 9 Segment information 10 Basic earnings per share 11 Dividends 12 Commitments with non-related parties 13 Contingent liabilities 14 Thai Financial Reporting Standards (TFRS) not yet adopted 15 Reclassification of accounts 11

14 Notes to the interim These notes form an integral part of the. The interim were authorised for issue by the Board of Directors on 13 May General information Muramoto Electron (Thailand) Public Company Limited, the Company, is incorporated in Thailand and has its registered office at No. 886 Ramindhra Road, Khwaeng Kannayao, Khet Kannayao, Bangkok 10230, Thailand. The Company was listed on the Stock Exchange of Thailand in August The parent and ultimate parent company during the financial period was Muramoto Industry Company Limited (incorporated in Japan). The principal activities of the Company are manufacturing of metal and plastic parts for audio/visual equipment and electronic equipment for automobiles and office automation appliances. Details of the Company s direct subsidiary are as follows: Country of Ownership interest Type of business incorporation Sima Technology Co., Ltd. Manufacturing of electronic parts Thailand 99.99% 99.99% 2 Basis of preparation of The interim issued for Thai reporting purposes are prepared in the Thai language. This English translation of the has been prepared for the convenience of readers not conversant with the Thai language. The interim are prepared on a condensed basis in accordance with Thai Accounting Standard No. 34 Interim Financial Reporting including related interpretations and guidelines promulgated by the Federation of Accounting Professions ( FAP ), applicable rules and regulations of the Securities and Exchange Commission and with generally accepted accounting principles in Thailand. The interim have been prepared to provide an update on the for the year ended 30 September They focus on new activities, events and circumstances to avoid repetition of information previously reported. Accordingly, these interim should be read in conjunction with the for the year ended 30 September The FAP has issued during 2010 and 2011 a number of new and revised TFRS which are not currently effective and have not been adopted in the preparation of these. These new and revised standards and interpretations are disclosed in note 14. The interim are presented in Thai Baht, rounded to the nearest thousand unless otherwise stated. 12

15 Notes to the interim Accounting policies and methods of computation adopted by the Group applied in the interim are consistent with those applied in the for the year ended 30 September The consolidated interim comprise the Company and its subsidiary, Sima Technology Co., Ltd. Significant intra-group transaction between the Company and its subsidiary are eliminated on consolidation. 3 Related party transactions and balances Related parties are those parties linked to the Company and subsidiary ( the Group ) by common shareholders or directors. Transactions with related parties are conducted at agreed prices which approximate market prices, or where no market price exists, at contractually agreed prices. Relationships with related parties that control or jointly control the Company or are being controlled or jointly controlled by the Company or have transactions with the Group were as follows: Name of entities Country of incorporation/ nationality Nature of relationships Muramoto Industry Co., Ltd. Japan Ultimate parent of the group, some common directors Sima Technology Co., Ltd. Thailand Direct subsidiary, 99.99% shareholding and common director Muramoto Asia Pte Ltd. Singapore Ultimate parent is major shareholder, common director Dalian Muramoto Electronic China Ultimate parent is major shareholder, Co., Ltd. common director Muramoto USA Inc. USA Ultimate parent is major shareholder, common director Muramoto Technics Malaysia Ultimate parent is major shareholder, (Malaysia) Sdn. Bhd. common director Muramoto Manufacturing Czech Ultimate parent is major shareholder, Europe S.R.O. Replubic common director Muramoto (Tianjin) China Ultimate parent is major shareholder, Electronics Co., Ltd. common director Muramoto Audio-Visual Philippine Ultimate parent is major shareholder, Philippines Inc. common director 13

16 Notes to the interim Name of entities Country of incorporation/ nationality Nature of relationships P.T. Muramoto Elecktronika Indonesia Ultimate parent is major shareholder, Indonesia common director Muramoto Manufacturing de Maxico Ultimate parent is major shareholder, Maxico, S DE RL DE CV common director Significant transactions for the three-month and six-month periods ended 31 March 2011 and 2010 with related parties are summarized as follows: Three-month period ended 31 March Parent Muramoto Industry Co., Ltd. Sales of goods 175, , , ,923 Purchases of goods and fixed assets 49,836 26,238 39,190 20,782 Royalty fees 29,947 28,126 28,093 25,677 Technical fees 298 1, ,794 Subsidiary company Sima Technology Co., Ltd. Sales of goods ,798 7,603 Purchases of goods - - 3,752 1,662 Interest income - - 2,793 1,028 Other related companies Muramoto Asia Pte Ltd. Sales of goods 523, , , ,946 Purchases of goods 28,535 20,064 21,583 19,924 Muramoto Sumitronics, USA LLC. Purchases of goods 53,135-53,135 - Muramoto USA Inc. Sales of goods 11, , Interest income Muramoto Audio-Visual Philippines, Inc. Sales of goods 4,209 2,731 4,209 2,731 Purchases of goods 1,

17 Notes to the interim Muramoto Technics (Malaysia) Sdn Bhd. Purchases of goods 42,372 6,078 42,372 6,078 Other income 1,153-1,153 - P.T. Muramoto Elektronika Indonesia Sales of goods 3,703-3,703 - Purchases of fixed asset Six-month period ended 31 March Parent Muramoto Industry Co., Ltd. Sales of goods 417, , , ,726 Purchases of goods and fixed assets 138,793 71, ,052 56,193 Royalty fees 60,264 55,434 56,335 50,419 Technical fees 298 6, ,432 Subsidiary company Sima Technology Co., Ltd. Sales of goods ,573 16,877 Purchases of goods - - 5,344 3,320 Interest income - - 5,388 2,002 Other related companies Muramoto Asia Pte Ltd. Sales of goods 1,057,101 1,372, ,093 1,279,268 Purchases of goods 48,853 46,170 41,901 45,945 Muramoto Sumitronics, USA LLC. Purchases of goods 53,135-53,135 - Dalian Muramoto Electronics Co., Ltd. Purchases of goods - 7,398-7,192 Muramoto USA Inc. Sales of goods 15,575 1,528 15,575 1,528 Purchases of goods Interest income Muramoto Audio-Visual Philippines, Inc. Sales of goods 7,905 4,289 7,905 4,289 Purchases of goods 4,

18 Notes to the interim Muramoto Technics (Malaysia) Sdn Bhd. Purchases of goods 42,381 29,685 42,381 29,685 Other income 2,466-2,466 - P.T. Muramoto Elektronika Indonesia Sales of goods 4,488-4,488 - Purchases of fixed asset Balances as at 31 March 2011 and 30 September 2010 with related parties are as follows: 31 March 30 September 31 March 30 September Trade accounts receivable from related parties Parent Muramoto Industry Co., Ltd. 199, , , ,442 Subsidiary company Sima Technology Co., Ltd ,159 20,414 Other related companies Muramoto Asia Pte Ltd. 153, , , ,876 Muramoto USA Inc. 5,100 1,660 5,100 1,660 P.T. Muramoto Elektronika Indonesia 2, , Muramoto Audio-Visual Philippines, Inc. 1,388 2,562 1,381 2,520 Total 361, , , ,383 Short-term loans to related party Subsidiary Sima Technology Co., Ltd , ,000 16

19 Notes to the interim 31 March 30 September 31 March 30 September Other receivables from related parties Parent Muramoto Industry Co., Ltd Subsidiary company Sima Technology Co., Ltd ,000 Other related companies Muramoto USA Inc. 2, , Muramoto Asia Pte Ltd Muramoto Technics (Malaysia) Sdn Bhd Muramoto Manufacturing de Maxico, S DE RL DE CV Total 2, ,338 6,495 Long-term loans to related party Other related companies Muramoto USA Inc. 90,476-90,476 - Trade accounts payable - related parties Parent Muramoto Industry Co., Ltd. 42,480 27,055 35,219 19,600 Subsidiary company Sima Technology Co., Ltd ,367 1,077 Other related companies Muramoto Asia Pte Ltd. 14,525 10,902 8,966 10,902 Muramoto USA Inc Muramoto Audio-Visual Philippines, Inc Muramoto Technics (Malaysia) Sdn Bhd. 40,477-40,477 - Muramoto Manufacturing Eurpore S.R.O P.T. Muramoto Elektronika Indonesia Total 98,867 39,223 89,242 32,296 17

20 Notes to the interim 31 March 30 September 31 March 30 September Other payable - related party Parent Muramoto Industry Co., Ltd. 41, ,450 34, ,397 Other related companies Muramoto Manufacturing Eurpore S.R.O Muramoto Audio-Visual Philippines, Inc Total 41, ,917 34, ,518 Short-term loan to related party Movements during the six-month periods ended 31 March 2011 and 2010 of short-term loan to related party are as follows: At 1 October , ,000 Increase ,000 40,000 At 31 March , ,000 As at 31 March 2011, short-term loans to Sima Technology Co., Ltd. bear interest at the rates ranging from 1.96% % per annum (30 September 2010: 1.90% % per annum). Final maturity date is 24 February 2012 (30 September 2010: 28 September 2011). Long-term loan to related party Movements during the six-month periods ended 31 March 2011 and 2010 of long-term loan to related party are as follows: At 1 October Increase 91,674-91,674 - Unrealized loss on exchange rate (1,198) - (1,198) - At 31 March 90,476-90,476-18

21 Notes to the interim On 1 October 2010, the Company entered into a loan agreement with Muramoto USA Inc. in which the Company agreed to lend USD 3 million (equivalent to Baht 90 million) to the latter. The loan bears interest at 1.52% per annum, is unsecured and is due on 30 September Significant agreements with related parties As at 31 March 2011, the Company has guaranteed Baht 320 million (30 September 2010: Baht 330 million) of bank overdraft and loan facilities from a bank for its subsidiary. Service agreements for technical advice and business support The Group has entered into a service agreement with the parent company whereby the parent company agrees to provide full assistance and furnish the Group with all recent technical advice, product design and business support for the production and marketing of electronic parts. Under the term of the agreement, the Group agrees to pay a fee equal to 0.75% of total sales in each fiscal year. The agreement is automatically renewed on a year-to-year basis, unless either of the parties thereto gives the other party prior written notice. 4 Trade accounts receivable 31 March 30 September 31 March 30 September Note Related parties 3 361, , , ,383 Other parties 2,081,043 2,238,450 1,834,046 1,917,207 2,442,618 2,835,599 2,184,116 2,494,590 Less allowance for doubtful accounts Net 2,442,618 2,835,599 2,184,116 2,494,590 Aging analyses for trade accounts receivable are as follows: 31 March 30 September 31 March 30 September Within credit terms 2,389,277 2,766,790 2,132,742 2,426,219 Overdue: Less than 3 months 51,669 68,352 49,702 68, months 1, , Over 12 months ,442,618 2,835,599 2,184,116 2,494,590 Less allowance for doubtful accounts Net 2,442,618 2,835,599 2,184,116 2,494,590 The normal credit term granted by the Group ranges from 30 days to 120 days. 19

22 Notes to the interim 5 Investment in subsidiary The investment in subsidiary as at 31 March 2011 and 30 September 2010, and dividend income from this investment for the six-month periods ended 31 March 2011 and 2010 were as follows: Ownership interest Paid-up capital Cost method Dividend for six-month ended 31 March 30 September 31 March 30 September 31 March 30 September 31 March 31 March (%) Subsidiary Sima Technology Co., Ltd , , , ,

23 Notes to the interim 6 Property, plant and equipment Acquisitions, disposals and transfers of property, plant and equipment during the six-month periods ended 31 March 2011 and 2010 were as follows: Disposals and Disposals and Acquisitions Transfers out Acquisitions transfers out and transfers - net book and transfers - net book in - at cost value in - at cost value Buildings and structure 67,017-11,614 - Machinery and equipment 292,748 18, ,837 5,339 Transportation equipment 875-1,411 - Furniture, fixtures and office equipment 7,901 1,366 2, Assets under construction and installation 197, , ,749 51,446 Total 565, , ,438 56, Disposals and Disposals and Acquisitions Transfers out Acquisitions transfers out and transfers - net book and transfers - net book in - at cost value in - at cost value Buildings and structure 35,925-9,072 - Machinery and equipment 118,157 18, ,833 5,339 Furniture, fixtures and office equipment 7, , Assets under construction and installation 111,947 81,573 35,593 51,446 Total 273, , ,831 56,802 7 Trade accounts and notes payable Note 31 March 30 September 31 March 30 September Related parties 3 98,867 39,223 89,242 32,296 Other parties 2,404,101 2,488,669 2,019,345 2,103,316 Total 2,502,968 2,527,892 2,108,587 2,135,612 21

24 Notes to the interim 8 Treasury shares and reserve At the Board of Directors meeting of the Company held on 15 May 2009, the Company s directors resolved to approve a Share Repurchase Program in accordance with the Section 66/1(2) of the Public Limited Company Act (No.2) B.E in an amount not exceeding Baht 360 million. Under the program: The number of ordinary shares to be repurchased will not exceed 2.2 million shares (par value of Baht 10 per share), equal to 10% of the total paid-up share capital of the Company; The Company shall repurchase its ordinary shares through the main board of the Stock Exchange of Thailand during the period from 2 June 2009 to 1 December 2009; and The Board of Directors shall determine the share resale procedures and period after 6 months but no later than 3 years from the completion date of share repurchase. As of 1 December 2009 the Company had repurchased 1,101,900 shares (equal to 5.01% of the total number of paid-up share capital of the Company) for an aggregate consideration of Baht million. Accordingly, the Company had transferred an amount of Baht million from unappropriated retained earnings to treasury share reserve. 9 Segment information Segment information is presented in respect of the Group s business and geographic segments. The primary format, business segments is based on the Group s management and internal reporting structure. Management considers that the Group operates in a single line of business, namely electronic parts and operates in a single geographic area, namely in Thailand, and has therefore only one business and geographic segment. 10 Basic earnings per share The calculations of basic earnings per share for the three-month and six-month periods ended 31 March 2011 and 2010 were based on the profit for the periods attributable to equity holders and the number of ordinary shares outstanding during the period as follows: (in thousand Baht / thousand shares) Three-month period ended 31 March Profit attributable to equity holders of the Company 115, ,651 96, ,968 Number of ordinary shares outstanding at 1 October 22,000 22,000 22,000 22,000 Effect of own shares held (1,102) (1,088) (1,102) (1,088) Weighted average number of ordinary shares outstanding during the period 20,898 20,912 20,898 20,912 Basic earnings per share (in Baht)

25 Notes to the interim (in thousand Baht / thousand shares) Six-month period ended 31 March Profit attributable to equity holders of the Company 280, , , ,945 Number of ordinary shares outstanding at 1 October 22,000 22,000 22,000 22,000 Effect of own shares held (1,102) (1,088) (1,102) (1,088) Weighted average number of ordinary shares outstanding during the period 20,898 20,912 20,898 20,912 Basic earnings per share (in Baht) Dividends At the annual general meeting of the shareholders of the Company held on 28 January 2011, the shareholders approved the appropriation of dividend of Baht 17 per share, amounting to Baht 355 million. The dividend was paid to shareholders during At the annual general meeting of the shareholders of the Company held on 29 January 2010, the shareholders approved the appropriation of dividend of Baht 5 per share, amounting to Baht 104 million. The dividend was paid to shareholders during Commitments with non-related parties 31 March 30 September 31 March 30 September Capital commitments Contracted but not provided for Land 17,800-17,800 - Buildings and other constructions 1,350-1,350 - Machineries and equipments 207, ,276 - Total 226, ,426 - Non-cancellable operating lease commitments Within one year 11,144 13,015 6,319 8,450 After one year but within five years 9,138 10,177 4,179 2,862 Total 20,282 23,192 10,498 11,312 23

26 Notes to the interim 13 Contingent liabilities As at 31 March 2011 and 30 September 2010, the Group was liable to banks in respect to the following guarantees: 31 March 30 September 31 March 30 September Raw materials purchases 133, ,378 66,957 67,227 Performance guarantees 1,217 1, Electricity supply 35,883 35,631 28,317 28, Thai Financial Reporting Standards (TFRS) not yet adopted The Group has not adopted the following new and revised TFRS that have been issued as of the reporting date but are not yet effective. The new and revised TFRS are anticipated to become effective for annual financial periods beginning on or after 1 January in the year indicated in the following table. TFRS Topic Year effective TAS 1 (revised 2009) Presentation of Financial Statements 2011 TAS 2 (revised 2009) Inventories 2011 TAS 7 (revised 2009) Statement of Cash Flows 2011 TAS 8 (revised 2009) Accounting Policies, Changes in Accounting Estimates and Errors 2011 TAS 10 (revised 2009) Events after the Reporting Period 2011 TAS 12 Income tax 2013 TAS 16 (revised 2009) Property, Plant and Equipment 2011 TAS 17 (revised 2009) Leases 2011 TAS 18 (revised 2009) Revenue 2011 TAS 19 Employee Benefits 2011 TAS 21 (revised 2009) The Effects of Changes in Foreign Exchange Rates 2013 TAS 24 (revised 2009) Related Party Disclosures 2011 TAS 27 (revised 2009) and Financial Statements 2011 TAS 33 (revised 2009) Earnings per Share 2011 TAS 34 (revised 2009) Interim Financial Reporting 2011 TAS 36 (revised 2009) Impairment of Assets

27 Notes to the interim TFRS Topic Year effective TAS 37 (revised 2009) Provisions, Contingent Liabilities and Contingent Assets 2011 TAS 38 (revised 2009) Intangible Assets 2011 Management expects to adopt and apply these new TFRS in accordance with the FAP s announcement and is presently considering the potential initial impact on the consolidated and separate. 15 Reclassification of accounts Certain accounts in the 2010 have been reclassified to conform to the presentation in the 2011 as follows: 2010 Before After Before After reclass. Reclass. reclass. reclass. Reclass. reclass. Balance sheet Trade accounts receivable 2,836,094 (495) 2,835,599 2,495,085 (495) 2,494,590 Other accounts receivable from related parties , ,495 Other non current asset 16,384 (4,622) 11, Restricted fixed deposit - 4,622 4, Trade accounts and notes payable 2,534,243 (6,351) 2,527,892 2,141,963 (6,351) 2,135,612 Other account payable to related party 147,100 2, , ,701 2, ,518 Other current liabilities 291,494 3, , ,399 3, , The reclassifications have been made because, in the opinion of management, the new classification is more appropriate to the Group s business. 25