:: annual report 2010 - 2011 ::

04 Board of Directors

05 Message from the Chairman

06 Audit Committee Report 2010 - 2011

08 The Board of Directorsû Report on its Responsibility to Financial Statements

09 Key Financial Indicators

10 Financial Highlights

11 General Information

14 Business Overview

41 Risk Factors

51 Future Projects

55 Legal Dispute

55 Shareholding Structure & Management

67 Good Corporate Governance & Internal Control

75 Financial Position and Operational Performance

96 Audited Financial Statements

127 Information of Director and Management of the Company

C o n t e n t

Polyplex participates in Interpack 2011 - Germany

Factory Visit Organized in February 2011 for Investors & Analysts.

Celebrating Childrensû day at Thailand and Turkey

ANNUAL REPORT 2010-2011POLYPLEX (THAILAND) PUBLIC COMPANY LIMITED

Polyplex donates to the Relief fund for the flood victims in South of Thailand.

PTL Team participating in a Sea Turtle conservation project at Chantaburi.

ANNUAL REPORT 2010-2011POLYPLEX (THAILAND) PUBLIC COMPANY LIMITED

In the backdrop of better global economic conditions and an unusual run-up in PET film prices based on robust

demand and delayed capacity increases, performance during the year is highlighted by exceptional level of

profitability and operational cash flows. The Companyûs strategy as well as its leadership position in key markets

has helped leverage the favourable market conditions.

Sales at Baht 11.18 billion were higher by 57% as compared to the previous year. Profit after tax of Baht

3.89 billion was up by almost 275% over last year.

The Companyûs investments in Turkey have delivered excellent returns and validate the strategy based on

multiple manufacturing and distribution arrangements which provide ready and direct access to a large base

of customers and enhance service capabilities. This translates into healthy growth in shareholder

value - Book value per share has increased from THB 4.08 as on 31st March 2005 to THB 10.45 as on 31st

March 2011, a CAGR of 17%.

Our Dividend policy has also ensured that our shareholders get appropriate return on their investments.

Over the last 6 years, company has paid tax-free dividends amounting to THB 2.83 per share and has

proposed a further THB 1.35 per share as the final dividend for the year 2010-11 for the consideration of

the shareholders.

Recent investments aimed at downstream integration and diversification into related films like Cast Polypropylene

films and Extrusion coated films have also started exhibiting positive signs and would present growth

opportunities in the near future.The siliconizing line which will use PET film as an input is currently under

advanced stage of implementation and should come on stream towards the middle of this financial year.

Mr.Manu LeopairoteChairman - Board and Audit Committee

MESSAGE FROM THE CHAIRMAN

In order to maintain the momentum in growth, the Company has decided to foray into çThick PET Filmé

segment by starting work on a new film line in Thailand. Further, the decision to relocate the PET Thin film

line from Turkey to USA would ensure that the Company has an on-shore manufacturing base in the large

and attractive North American market and build upon the platform that has been laid by its fast growing

distribution operations. Besides improved customer access, this move would also be cost effective due to

significant savings in logistics/related costs.

Reducing the Companyûs carbon footprint and maintaining the sustainability of environmental resources has

been one of the key areas of focus. Realizing the significance of these factors in the economic value chain

and the impact of these initiatives on society and business, the Company has initiated efforts to develop

environmental friendly products using renewable raw material sources.

While market conditions would inevitably trend downwards from the highs of last year, the business remains

robust.Backed by a strong and liquid balance sheet, the Company intends to continuously grow the business

by judicious selection of opportunities.

I conclude by thanking my colleagues on the Board for their continued support and guidance and our team

of dedicated employees. Last but not the least I thank you all for your continued support.

MESSAGE FROM THE CHAIRMAN

Dr. Virabongsa Ramangkura, Ph.D.Director and Member - Audit Committee

Mr. Shiraz Erach PoonevalaDirector and Member - Audit Committee

Mr. Pranay KothariDirector

Mr. Ranjit SinghDirector

Mr. Praphad PhodhivorakhunDirector

BOARD OF DIRECTORS

Mr. Manu LeopairoteChairman - Board and Audit Committee

Mr. Sanjiv SarafVice Chairman

Mr. Rohit Kumar VashisthaManaging Director

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The Board of Directors' Report on its Responsibility to

Financial Statements

To the Shareholders of Polyplex (Thailand) Public Co., Ltd.

In recognition of its duties and responsibilities and in compliance with good corporate governanceprinciples, the Board of Directors has ensured that the financial statements and financial informationappearing in the annual report are accurate, complete and adequate. The financial statements arein compliance with the generally accepted accounting practices in Thailand and follow accountingstandards and practices that are appropriate to the nature of business. To ensure reasonableconfidence in using these financial statements, the Board has instituted and maintained internalcontrol systems, subject to periodic review by the Audit committee and reported to the Board.

The company auditor has applied generally accepted auditing standards in auditing the company'sfinancial statements for 2010-11 and is of the view that these financial statements present fairly,in all respects, the financial standing, results of the operations and cash flows for the company,in accordance with generally accepted accounting principles.

Mr. Manu Leopairote Mr.Rohit Kumar VashisthaChairman Managing Director

8Annual Report 2010-2011Polyplex (Thailand) Public Company Limited

Audit Committee Report - 2010-11

To the Shareholders of Polyplex (Thailand) Public Co., Ltd.

Following the company's transformation into a public limited company on August 11, 2004, theshareholders' meeting held on September 2, 2004 decided to constitute an Audit Committeecomprising of three independent directors with knowledge, expertise and experience in finance &accounting, industry and business. The appointees were Mr. Manu Leopairote (Chairman of theAudit Committee), Dr. Virabongsa Ramangkura and Mr. Shiraz Erach Poonevala.

The Audit Committee performed duties under the delegation of authority set out by the Board ofDirectors. Among the Audit Committee's responsibilities are to review the quarterly / annual financialresults of the company, supervise whether the company was in compliance with the rules andregulations of the Stock Exchange of Thailand (SET) and Securities Exchange Commission (SEC),ensure the transparency of the accounting system, review of internal control systems and promotegood corporate governance practices.

In the financial year ended March 31, 2011, a total of four Audit Committee meetings were held.

The Committee's work can be summarized as below:1. Reviewed and approved the quarterly and yearly financial statements of the company and its

subsidiaries to ensure compliance with the generally accepted accounting standards anddisclosure of key information before proposing them for the Board's approval as also prior tosubmission to SEC and SET. After due consideration and discussion, it is the opinion of theCommittee that the above mentioned financial statements are presented fairly in accordancewith generally accepted accounting principles and sufficiently disclosed.

2. Reviewed and monitored the corporate compliance and internal control systems as also riskmitigation measures. The Committee believes that the company's internal control systems areadequate.

3. Reviewed the disclosure of information on transactions between the company and itsaffiliates or any transactions, which may have been perceived as potentially causing conflictsof interest.

4. Reviewed and approved Interim Dividend payment based on profitability for six months periodended on 30th September 2010

5. Reviewed and approved the Final Dividend payment for the financial year ended on 31stMarch 2010

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6. Reviewed the new investment proposals (Thick PET film line investment in Thailand) duringthe financial year and proposed it to the Board of Directors for their consideration andapproval.

7. Reviewed and discussed the letter from the company's auditors Ernst & Young, on their internalaudit observations and also acknowledged response from the company to these observations.The committee also reviewed the status of implementation of the Internal Audit recommenda-tions in a subsequent meeting.

8. Considered and recommended to the Board of Directors to re-nominate Mr. Narong Puntawong(CPA No. 3315) and/or Mr. Supachai Phanyawattano (CPA No. 3930) and/or Ms. SirapornOuaanunkun (CPA No. 3844) of Ernst & Young to be re-appointed by the shareholders as theauditors of the Company for the FY 2010-11.

Name Position Signature

Mr. Manu Leopairote Board Chairman and AuditCommittee Chairman

Dr. Virabongsa Ramangkura Audit Committee Member

Mr. Shiraz Erach Poonevala Audit Committee Member


Key Financial Indicators

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2010-11 2009-10 2008-09 2007-08 2006-07

Progression (Thousand Baht)

Net Sales 11,183,174 7,125,366 6,859,738 6,398,679 4,718,570

Total Revenues 11,320,169 7,299,520 7,062,825 6,512,014 4,808,832

Gross Profit 4,680,656 1,731,011 1,800,785 1,422,910 864,177

Net Profit (Loss) 3,882,885 1,039,386 1,041,966 813,551 314,842

Total Assets 11,932,901 8,866,744 8,880,550 8,299,334 5,837,919

Total Liabilities 3,570,196 3,854,260 4,284,324 3,970,453 2,315,560

Total Shareholder's equity 8,362,705 5,012,484 4,596,226 4,328,881 3,522,359

Financial Ratios*

Net Profit Margin (%) 34.30% 14.24% 14.75% 12.50% 7.11%

Return on Equity (%) 58.26% 21.72% 23.44% 20.80% 9.80%

Return on Assets (%) 37.34% 11.71% 12.13% 11.51% 5.98%

Per Share Data (Baht)

No. of shares 800,000,000 800,000,000 800,000,000 800,000,000 800,000,000

Dividend per share (Baht) 1.94* 0.52 0.52 0.40 0.17

Earnings per share 4.85 1.30 1.30 1.02 0.43

Par value 1.00 1.00 1.00 1.00 1.00

Note: Above figures and ratios are on consolidated basis (includes figures for the Company's

subsidiary in Turkey which had commenced operations in 2005/06 as also for subsidiary in

Singapore which is an investment holding company and subsidiaries in USA & China which

are Distribution companies)

* Interim Dividend of Bt 0.59 per share paid in November 2010 and Final dividend of Bt 1.35

per share as proposed to the Annual General Meeting of Shareholders, 2011 for their approval.

1. Financial Highlights


2.1 The company Polyplex (Thailand) Public Company Limited

Stock Exchange of Thailand symbol PTLRegistered Head office 75/26, Ocean Tower II, 18th Floor, Sukhumvit Soi 19,

Kwaeng North Klongtoey, Khet Wattana, Bangkok - 10110Telephone (662) 665-2706-8Facsimile (662) 665 2705Factory -1 Siam Eastern Industrial Park, 60/24, Moo 3, Tambol

Marbyangporn, Amphur Pluak Daeng, Rayong - 21140Factory -2 Siam Eastern Industrial Park, 60/91 Moo 3, Tambol

Marbyangporn, Amphur Pluakdaeng , Rayong 21140Type of Business Manufacturer of Polyester Film (Plain and Metallized),

Polyester Chips, Extrusion Coated film and CastPolypropylene Film (Plain and Metallized)

Company registration number 0107547000729Telephone (66) 38 891 352-4Facsimile (66) 38 891 358Website http://www.polyplexthailand.com

Registered Capital Baht 960,000,000Common Shares 960,000,000 sharesPar Value Baht 1.00 per sharePaid-up Capital Baht 800,000,000Number of Employees 647 including subsidiaries in Turkey, USA and China,

and 411 in Thailand.

2. General information

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2.2 Subsidiaries in which the company holds more than 10% share

Company Name and Business Registered No. of shares % Type of

Address Type Capital held by the shareholding Shares

(shares) Company

Polyplex (Americas) Inc. Distribution 10,000,000 203,000 80.24% Common

12200 Ford Suite A-210 Company 5,000,000 800,000 96.15% Preference

Farmers Branch, Dallas,

Texas-75234

Polyplex (Singapore) Pte Ltd. Investment 100,000 100,000 100% Common

61, Club Street, Holding 300,000 206,150 100% Preference

Singapore-069436 Company

Polyplex Europa Polyester Film* Manufacturer 1,500,000 1,500,000 100% Common

Sanayi Ve Ticaret A.S. Avrupa of Polyester

Serbest Bolgesi, 132, Ada, Film &

7 Parsel, Velimese Mevkii, Polyester

Corlu, Turkey chips

Polyplex Trading (Shenzhen) Distribution $400,000,** $400,000** 100% Common

Co. Ltd* Room.1309,A block, Company

Galaxy Century Building,

Caitian South Rd., Futian

District,Shenzhen People's

Republic of China

* Indirect holding via PSPL

** $ 400,000 refers to the registered & paid up Share capital of Polyplex Trading (Shenzhen) Co. Ltd. There

is no concept of number of shares or par value per share in People's Republic of China.

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2.3 Other references

(a) RegistrarName Thailand Securities Depository Co., Ltd.Address 62, The Stock Exchange of Thailand Building

4th, 6th-7th Floor, Rachadapisek Road, Klongtoey, Bangkok 10110Telephone (662) 229-2800, (662) 654-5599Facsimile (662) 359-1259

(b) TrusteeN/A

(c) Auditing Firm1) Name Ernst & Young

Address 33rd Floor, Lake Rajada Office Complex, 193/136-137 Rajadapisek roadNear Queen Sirikit National Convention Centre Bangkok 10110, Thailand

Telephone (662) 264-0777Facsimile (662) 661-9190Auditors* Mr. Narong Puntawong (CPA No. 3315) and/or

Mr. Supachai Phanyawattano (CPA No. 3930) and/orMs. Siraporn Ouaanunkun (CPA No. 3844)

* Auditors of the company for the FY 2010-11 and also proposed as Auditors for FY2011-12, to the Annual General Meeting of Shareholders, 2011 for their approval.

(d) Legal AdvisorsName Allen & Overy (Thailand) Co. Ltd.Address 22nd Floor, Sindhorn Tower III, 130-132 Wireless Road, Lumpini,

Pathumwan, Bangkok 10330, ThailandTelephone (662) 263-7600Facsimile (662) 263-7699Contact person Mr. Arkrapol Pichedvanichok

Ms. Somporn ManodamrongthamName Baker & McKenzie Ltd.Address 990 Abdulrahim Place, 5th floor and 22nd - 25th Floors, Rama IV Road,

Silom, Bangrak, Bangkok 10500, ThailandTelephone (662) 636-2000Facsimile (662) 636-2110Contact person Mr. Wittaya Luengsukcharoen

(e) Advisor or manager under management contractN/A

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3.1 Company profile and key changes and developmentsPolyplex (Thailand) Plc. (çPTLé or çthe Companyé) was incorporated as a private companyon March 26, 2002 with an initial registered capital of Bt. 400,000 to manufacture and distributePET film (polyethylene terephthalate film or polyester film). The registered capital of theCompany was subsequently increased to Bt. 400 million in April/May, 2002. In August 2004,the Company was transformed into a Public Company and the IPO was subsequently madein December 2004. The Company is promoted by Polyplex Corporation Limited (PCL) basedin India and engaged in the same business as the Company for more than 20 years. As ondate, PCL has 51% stake in the Company through both direct and indirect shareholdingand the balance 49% is with the general public.

Past key changes and developments in the Company are as follows:March-April 2002 PTL was promoted by PCL, which is a listed company (on the

Bombay Stock Exchange as also National Stock Exchange) in India.PCL took up 100% of the Companyûs registered capital of Bt.400,000,000, divided into 8,000,000 ordinary shares at a par valueof Bt. 10 per share and 32,000,000 preference shares at a par valueof Bt. 10 per share. PTL also acquired a plot of land with an area of20 rai 22 square wah at Siam Eastern Industrial Park in RayongProvince in order to construct a factory for manufacture of PET film.

May 20, 2002 PTL was granted a promotion certificate by BOI for PET film (productionline 1) with an approved production capacity of 15,000 tons per year.

July-2002 to April-2003 The Company started construction of the factory in July-2002and completed its plant construction and proceeded with machinerytest-run in March, 2003 followed by commercial production fromApril 2, 2003 when its first sale invoice was recorded.

March/April-2003 The shareholdersû meeting resolved for increase of registeredcapital by another Bt. 260 million through issuance of 20,800,000preference shares at a par value of Bt. 10 per share and 5,200,000ordinary shares at a par value of Bt. 10 per share to the existingshareholders

June 11, 2003 The Company was granted a BOI promotion certificate for production of● PET film (production line 2) with an approved production capacity

of 15,000 tons per year (now expanded to 19,500 tons per year).● PET resin with an approved production capacity of 26,250

tons per year

3. Business Overview


September 11, 2003 The Board of Directors resolved for the purchase of another plot of landadjacent to the existing land covering 8 rai 28.9 square wah area toproduce PET resin which is the raw material in PET film production.

November 12, 2003 Commercial production and distribution began for film production line 2.

December 13, 2003 The Company attained ISO 9001:2000 certification on qualitymanagement system.

May 31, 2004 The Company attained ISO 14001:1996 certification on environmentalmanagement system.

May to July-2004 The company received approval from the BOI for a restatement ofthe installed capacity of both its film production lines from 15,000tons to 19500 tons each per year. The company also applied to theBOI for further increase in the production capacity of both the filmlines to 24,000 tons per year each given the significant productivityimprovements and additional equipment commissioned by the company.

July 30, 2004 The shareholdersû meeting resolved for transformation of the Companyinto a public company, write-down of par value from Bt. 10 to Bt. 5 pershare and increase of registered capital by Bt. 1,068 million to make upa total of Bt. 1,728 million requiring issue of additional 213.6 millionordinary shares. The allocation of the increase in capital was as under:● 133.6 million Shares offered to Polyplex (Asia) Pte. Ltd. (PAPL),

a juristic person registered in Singapore, being a 100% subsidiaryof PCL, India.

● Up to 80 million shares at part value of Bt. 5 per share, makinga total of up to Bt. 400 million as public offering.

The meeting also resolved for establishment of a holding companynamed Polyplex (Singapore) Pte. Ltd.(PSPL), registered in Singaporeas a holding company to facilitate investment and business expansionin Turkey.

August 11, 2004 Registration was completed to transform the Company into a publiccompany.

September, 2004 Start up on PET resin batch plant in Thailand with an annualproduction capacity of 7,000 MT per annum.

September 2, 2004 The shareholdersû meeting resolved for decrease of registered capitalas under:● Redemption of the entire 105.6 million preference shares worth Bt.

528 million, currently held by PCL, by a capital reduction process.

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● Cancellation of the unissued ordinary shares of Bt. 240 million,comprising of 48 million shares, which were to be subscribedby PAPL.

The combined reduction as above would make the total registeredcapital Bt. 960 million of which Bt. 560 million is paid-up.The shareholdersû meeting also resolved to reduce the par value ofthe shares from Bt. 5 per share to Bt. 1 per share to be registeredalong with the capital reduction.

November 15 -16, 2004 ● Reduced the 105.6 million preference shares worth Bt. 528million, currently held by PCL, by a capital reduction process.The reduction make the registered capital Bt. 960 of whichBt. 560 is paid-up capital.

● Changed the par value to Bt. 1 per share

December 8, 2004 IPO of 240,000,000 shares at the price of Baht 6.90 per share.

February 22, 2005 PTL was granted a promotion certificate by BOI for Metalliser filmwith an approved production capacity of 7,500 tons per year.

February 22, 2005 Startup of Continuous Chips Plant with a production capacity of 45,500MT per annum.

April 19, 2005 & The company received approval from the BOI for a restatement of theApril 22, 2005 installed capacity of both its film production lines from 19,500 tons

to 24,000 tons each per year as also for its Chips plant from 26,250tons to 52,500 tons per year

August, 2005 Start up of Metallizer Line 1 in Thailand with an attainable annualcapacity of 4,800 MT per annum.

December, 2005 Start up of Thin Pet film line 1 in Turkey implemented by subsidiarycompany with a production capacity of 24,000 MT per annum.

March, 2006 Metallizer start up in Turkey with a production capacity of 4,800 MT pa.

December, 2006 Start up of Pet resin plant in Turkey with a production capacity of 45,500MT per annum

March, 2007 PTL was granted a promotion certificate by BOI for Extrusion Coatingfilm project with an approved production capacity of 18,000 MTper annum for two production lines.

October, 2007 Board of Directors of PTL approved a Project for related productdiversification in CPP Film manufacture in Thailand.


November, 2007 Start up of Trial run of Extrusion Coating Plant

November, 2007 Total Productive Maintenance (TPM) policy adopted and rolled out byPTL to enhance productivity.

January, 2008 PTL was granted a promotion certificate by BOI for MetallisedFilm Expansion Project with an approved production capacity of 8,700MT per annum.

April, 2008 Commencement of commercial production of the Extrusion Coating line.

May, 2008 Commencement of commercial production of the Thin PET Film lineand the Metallised Film line in Turkey and also the MetallisedFilm line in Thailand.

July, 2008 The OHSAS (Occupational Health and Safety Management Systems)18001:2007 certification was received for all the product lines

February, 2009 PTL was granted a promotion certificate by BOI for Cast Polypropylene(CPP) film project with an approved production capacity of 15,600MT for CPP plain and CPP Metallized film.

February, 2009 Board of Directors of PTL approved an Investment for setting up aTrading company in China.

May, 2009 Board of Directors of PTL approved an Investment in a SiliconeCoating line. The location was decided as Thailand in the Boardmeeting held in October 2009

September, 2009 The Trading company in China - Polyplex Trading (Shenzhen) Co. Ltdwas set up and capital injected through Polyplex (Singapore) Pte Ltd

March, 2010 Commencement of commercial production of the Cast Polypropylene line

May, 2010 Board of Directors of PTL approved the revival of the new thin PETfilm line investment, which was earlier approved by the Board inMay, 2008, but kept on hold due to the global economic crisis.

July, 2010 PTL was granted a promotion certificate by BOI for the SiliconeCoating film project with an approved capacity of 725 million sqm.

February, 2011 Board of Directors of PTL approved an Investment in a Thick PET filmline in Thailand.

May, 2011 Board of Directors of PTL approved relocation of the Thin PET filmline investment from Turkey to USA.

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3.2 Shareholding structureThe current shareholding structure of the Polyplex group is:

Polyplex Corporation 100% Polyplex (Asia)Ltd. (PCL) Pte. Ltd. (PAPL)

16.5% 34.5%

9.88% Polyplex (Thailand) 49%General PublicPlc. (PTL)

80.24% 100%

PolyplexPolyplex (Americas) Inc. Polyplex (Singapore) 100%Trading (Shenzhen)(PA) Pte. Ltd (PSPL)

Co. Ltd. (PTSL)

9.88% 100%

Foreign Share holder Polyplex Europa Polyester Film Sanayi Ve Ticaret Anonim Sirketi (PE)

Polyplex Corporation Ltd. (PCL)PCL, the parent company operating for over 20 years since 1988, is one of the majorproducers and distributor of plastic film in India selling in both the domestic and overseasmarkets. It has been listed for several years on Bombay Stock Exchange and other Exchangesin India. Itûs paid up capital is INR 319.8 million (about Bt. 214 million).

PCL has the following production capacities as at 31st March 2011:-

Product MT p.a

Polyester Film 51,000Polyester Chips 77,600Metallized Film 11,800BOPP Film 35,000

Its direct and indirect shareholding in the Company aggregate to 51% of the latterûs paidup capital.

Polyplex has also evolved an equitable policy for distribution of markets, for PET film business,between its Indian, Thailand and Turkey operations based on the several factors like productrange, delivered cost to customer, supply lead times and preferential duty access. Based onthe same, PTL would serve North America, South East Asia, Asia Pacific, China, Australia &New Zealand. PCL would serve South Asia, and South America. Turkey will serve, Europe,America, Middle East, Africa and CIS/Russian markets

The Polyplex group also has a policy on future investments in polyester film / related areasbetween the Company and its parent company. Investments in India/SAARC region wouldbe decided and made by PCL and its other subsidiaries (excluding the Company) whileinvestments In Thailand / ASEAN region as well as other countries would be in all likelihoodbe made by PTL or the subsidiaries in which the Company has a major stake. The above is


subject to availability of Investible cash / ability to borrow debt by the existing / preferredCompany as per the policy.

Polyplex (Asia) Pte. Ltd. (PAPL)PAPL was established as a 100% subsidiary of PCL in July, 2004 and is now a majorshareholder of PTL holding 34.5% as on 31st March 2011. PAPL was incorporated as aninvestment vehicle of PCL for its overseas investments (including PTL). The issued andpaid up capital of PAPL as of March 31, 2011 stands at USD 1.13 million.

Polyplex (Singapore) Pte. Ltd. (PSPL)PSPL was established as a 100% subsidiary of PTL in July 2004, as a wholly ownedinvestment company. Subsequently, PSPL invested in Polyplex Europa Polyester Film SanayiVe Ticaret Anonim Sirketi (PE), through Share capital injection as well as by extendingsubordinated loans, to set up a manufacturing factory in Turkey so as to serve the demand inEuropean and other proximate markets.

In September 2009, PSPL also set up a trading company in China, Polyplex Trading (Shenzhen)Co Ltd (PTSL) by investing $ 400,000 as share capital.

During the financial year 2010-11, PTL has redeemed USD 4.7 million of its Preference Sharesin PSPL, out of the funds received from PE, by way of loan repayment. The issued and paidup capital of PSPL (including Preference Share Capital) as of March 31, 2011 stands at Euro35.3 million.

Polyplex Europa Polyester Film Sanayi Ve Ticaret Anonim Sirketi (PE)PSPL had incorporated a 100% owned subsidiary company, PE in Turkey for setting up aGreenfield polyester film plant to cater to the European and other proximate markets.The commercial operations started in December, 2005 with the start up of the first thin PETfilm line. The first Metallizer plant started production in March, 2006. The PET resin plantcommenced commercial production from December, 2006. The second thin PET film lineand Metallized Film line commenced commercial production in May 2008.The issued and paidup capital of PE, including Additional Contribution from PSPL, as of March 31, 2011 standsat Euro 8.84 million.

Polyplex (Americas) Inc.PTL acquired 80.24% equity stake in Spectrum Marketing Inc. (renamed as Polyplex(Americas) Inc) with effect from January 1, 2006 to enhance its distribution network inthe North American market. PCL, PTLûs parent company also has a 9.88% stake whilethe balance 9.88% is held by a foreign US-based shareholder. The issued and paid up equitycapital of PA as of March 31, 2011 stands at USD 1.265 million. Apart from this the PreferenceShare capital, which is owned by PTL (96.15%) and a foreign US-based shareholder (3.85%)stands at USD 4.16 million as on March 31, 2011.

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Polyplex Trading (Shenzhen) Co. Ltd (PTSL)In the financial year 2009-10, PTL invested in the setting up of a wholly owned TradingCompany in Shenzhen, China, through its 100% held Investment Company in Singapore,PSPL. The decision to invest in the setting up of the Trading Company in China was a strategicinitiative to establish the Companyûs presence in China, which is one of the largest and thefastest growing market in this industry. The issued and paid up capital of PTSL as at 31st

March 2011 is USD 0.4 million.

3.3 Revenue structure of the CompanyPTLûs standalone and consolidated sales value classified by regions is shown below:

STANDALONE 2008-09 2009-10 2010-11Customers Bt. million % Bt. million % Bt. Million %

ExportsAsia 1,242.90 36.86 1,354.06 40.15 2,288.39 44.74North America 579.87 17.20 443.51 13.15 955.65 18.68Europe 289.64 8.59 290.81 8.62 434.98 8.50Others 268.75 7.97 192.12 5.70 249.91 4.89Total exports 2,381.15 70.61 2,280.50 67.63 3,928.94 76.81Domestic sales 590.37 17.51 584.03 17.51 1,013.33 19.81Sale of chips/others1 265.09 7.86 310.12 9.30 38.46 0.75Total sales revenues 3,236.61 95.98 3,174.66 95.18 4,980.73 97.38Other revenues2 135.62 4.02 160.69 4.82 134.26 2.62Total Revenues 3,372.23 100.00 3,335.35 100.00 5,114.99 100.00

CONSOLIDATED 2008-09 2009-10 2010-11Customers Bt. million % Bt. million % Bt. Million %

ExportsAsia 1,409.09 19.95 1,811.37 24.81 3,032.34 26.79North America 1,730.26 24.50 1,565.58 21.45 2,802.47 24.76Europe 1,845.54 26.13 2,169.96 29.73 3,464.45 30.60Others 645.32 9.14 357.92 4.90 289.04 2.55Total exports 5,630.21 79.72 5,904.84 80.89 9,588.30 84.70Domestic sales- PTL (Thailand) 590.37 8.36 584.03 8.00 1,013.33 8.95- PE (Turkey) 436.58 6.18 479.45 6.57 517.84 4.57Total Domestic sales 1,026.95 14.54 1,063.48 14.57 1,531.17 13.53Sale of chips/others1 202.59 2.87 157.04 2.15 63.71 0.56Total sales revenues 6,859.74 97.12 7,125.36 97.61 11,183.17 98.79Other revenues2 203.09 2.88 174.15 2.39 137.00 1.21Grand total 7,062.83 100.00 7,299.52 100.00 11,320.17 100.00

Note: 1) Sale of chips includes both domestic and export sales.2) Includes Exchange gain, miscellaneous sales, Export Incentive, interest received, etc.


3.4 Business GoalThe vision of Polyplex is to continuously grow, create value and establish global leadership inthe plastic film business through building trusted partnerships with Investors, Customers andEmployees. Keeping this vision in mind, Polyplex has been moving towards establishing itselfas a Preferred packaging substrate provider as against just a PET thin film supplier, byundertaking expansions for manufacturing BOPP film and CPP film, which are other Packagingsubstrates used by Converters, in addition to PET thin film. The company has in February2011, announced an investment in a Thick PET film line in Thailand, which is in line with theoverall strategy of continuously growing and also diversifying its business risk, by expanding itsproduct portfolio.

The business goal is to increase market share in various regional markets - throughgeographically diversified manufacturing presence, increased market penetration in keymarkets and build a diversified portfolio of products like Metallized films, Clear films, ThermalLamination films, Silicone Coated film, Chemically Coated films, and other grades of packagingfilms like CPP, BOPP etc. With a view to further diversify its manufacturing base, the Boardhas recently in May 2011, approved relocation of the Thin PET film line expansion from Turkeyto the USA. This would help the company to increase its market share in American continentby moving closer to the customers and becoming a preferred on-shore supplier as againstan off-shore or near-shore supplier in the past.

3.5 Promotion certificatePTL has been granted seven BOI promotion certificates, details of which are as below: -

S.No Certificate No. Type of business Date granted

1 1321(2)/2545 PET film 20-May-022 1287(2)/2546 PET film and PET Resin 11-Jun-033 1159(2)/2548 Metallized Films 22-Feb-054 1261(2)/2550 Thermal Lamination Films 14-Mar-075 1044(2)/2551 Metallized Films 10-Jan-086 1110(2)/2552 CPP film (Plain and Metallized CPP) 4-Feb-097 1719(2)/2553 Silicone Coated Film 14-July-10

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By virtue of the provisions of the Board of Investment Promotion Act B.E. 2520, the Companyhas been granted certain standard promotional privileges on the manufacturing and distributingthe polyester film/resin/Thermal Lamination film/CPP film/ Silicone Coated film as per the followingsections: 25, 26, 27, 28, 31, 34, 35(1), 35(2), 35(3), 36(1), 36(2) and 37 respectively. TheCompany must comply with certain conditions and restrictions provided for in the promotioncertificate. Details of the privileges of each of the above sections are available at www.boi.go.th

3.6 Business Operations by each product linePTL is Thailandûs leading producer and distributor of Polyester thin film (Polyethylene TerephthalateFilm, also called PET film, sold under the Brand name ùSarafilû), with most of the companyûsproduction being exported to the foreign countries. PTL focuses mainly on 3 key segments -Packaging, Industrial and Electrical. PTLûs customers use the companyûs products as rawmaterial to produce their end-products which are then sold to their consumers. Some examplesof products made from PET thin film are Coffee/Tea bag, snack bag, softener bag, detergentbag, wire/cable wrap and hot stamping foil.

In April 2008, the company started manufacturing a downstream value added product calledùThermal Lamination filmû. This sold under the brand name ùSaralamû. In this product line, thePET film or BOPP film is used as the base film, and then extrusion coated with adhesive resinslike LDPE or EVA, based on the requirement of the end use application to be catered to.

In line with its objective of becoming a complete packaging solution provider, rather than justa thin PET film supplier, the company has in March 2010 started the manufacture of Castpolypropylene film. The company manufactures and sells plain CPP film & metallised CPP filmunder the brand name ù SaraCPPû.

A project for manufacture of Silicone Coated film, another value added product is underimplementation in Thailand and is expected to start commercial production in Q3 of FY 2011-12.

A project for manufacture of Thick PET film is under implementation in Thailand and is expectedto start commercial production in H2 of FY 2012-13. Some of the common applications of ThickPET film are as under:


3.6.1 Product DescriptionThe range of products offered by the company is as under:A.) Transparent thin PET films which can divided into 5 sub-categories

● Plain● Corona or chemically treated● High adhesion films● Ultra clear films● Co-extruded films

B.) Metallized PET films● Semi Metallized film (low Optical density)● High barrier films

C.) Specialty Films● Twist films● Anti static films● Heat Sealable films● Isotropic Films, High Friction Films, etc● Matte films● Thick films

D.) Thermal Lamination Film● Gloss PET Thermal Film● MATTE PET Thermal Film● BOPP Thermal Film● Metallized Thermal Film

E.) Cast Polypropylene film - Product range:● Lamination & Conversion grade film

- Transparent film for lamination & surface printing- High hot tack film for candy packing

● Metallizable grade film - Transparent heat sealable film for vacuummetallization

● Twist grade film● Retort grade film

F.) Siliconized PET Films (Under the brand name ùSaracoteû) in Plain, Matte, andMetallized are used in various applications such as:● Shingle roofing tapes● Release liner in pressure sensitive labels.

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● Release liner in pressure sensitive adhesive tapes.● Release liner in medical and hygiene products.

3.6.1.1Characteristic Producta) Characteristic of PET film

PET film characteristic properties are as follows:- Optically brilliant, clear appearance- Excellent mechanical strength and toughness- Good dielectric properties- Good flatness and coefficient of friction (COF)- Tear-resistant and puncture - resistant characteristics- Excellent dimensional stability over a wide range of temperatures- Very good resistance to most common solvents, moisture, oil, and grease- Excellent barrier against a wide range of gases

PET film can also be modified with varying degrees of shrinkage, opacity &colors and different surface textures for it to be used over a wide range ofapplications.

A wide range of chemical treatments (in addition to corona) can be appliedto PET film during its manufacture to help it adhere to various coatings.

b) Characteristics of CPP Film- Excellent Heat sealing properties/ High heat resistance- Exceptional Optics- Good dimensional stability and barrier properties- Excellent printability- Metallized CPP - Significantly increases barrier properties

c) Characteristics of Thermal Lamination Films- High gloss & stiffness provide longevity to laminated media- Coated adhesive forms inseparable bond with inks/papers- Surface is conducive to add-on processes like Hot stamping, UV coating- Improves visual appeal of product

3.6.1.2End Use segmentThin PET film can be used in the following 3 key segments1. Packaging : Clear and Metallized thin PET film can be used as part of the

outer layer and middle layer of the flexible packaging such ascoffee bag, snack bag, softener bag, and detergent bag.

2. Industrial : Comprising of Hot stamping foils, flexible air-conditioning ducts,labels /ID cards, lamination products and many more.

3. Electrical : Wire and cable wrap, membrane switches, flexible printedcircuits, capacitors and motor insulation.


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Thermal Lamination films mainly cater to the following applications:1. Thermal Lamination of documents or printed media2. Reflective Insulation3. Flexible packaging4. Rigid packing using printed corrugated carton board

CPP films can be used in the following key segments:1. Packaging : CPP film is used as the inner most layer in food packaging, due

to its excellent heat sealing properties. It may also be used inTextile packaging, packaging of health care products/ consumerproducts etc

2. Industrial : Hot fill bags & liners, Industrial adhesive tapes, Interior automotivetrim panels etc

Note : Currently, the company is selling its CPP film only to the packaging segment

The segmental break-up of revenue (PTL Standalone and Consolidated) fromFilm sales (Plain & Metallized PET films, Thermal Lamination/ Silicone CoatedFilms and CPP film) are as follows:

STANDALONE SALES 2008-09 2009-10 2010-11

Segment Bt. Mn % Bt. Mn % Bt. Mn %

Packaging Use 2,546.14 85.68 2,407.62 84.05 3,986.67 80.66

Industrial Use 423.14 14.24 456.92 15.95 955.61 19.34

Electrical Use 2.24 0.08 0.00 0.00 0.00 0.00

Total Film Sales 2,971.52 100.00 2,864.54 100.00 4,942.28 100.00

CONSOLIDATED SALES 2008-09 2009-10 2010-11

Segment Bt. Mn % Bt. Mn % Bt. Mn %

Packaging Use 4,878.10 73.28 5,465.07 78.43 8,298.89 74.63

Industrial Use 1,565.96 23.52 1,369.20 19.65 2,666.52 23.98

Electrical Use 213.10 3.20 134.05 1.92 154.04 1.39

Total Film Sales 6,657.16 100.00 6,968.32 100.00 11,119.45 100.00

Note :1) Sales of Thermal lamination film by Thailand are included in 2 segmentsi.e. Packaging segment and Industrial segment, depending on the enduse application of each type of product sold.

2) Sales of CPP film by Thailand are included in the packaging segment, asthe company is currently catering only to this segment.

3) Sales of Silicone Coated film by Polyplex Corporation Limited, India inthe US market, through the distribution company - Polyplex (Americas)Inc. are included in the Industrial application.

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3.6.1.3Products with similar propertiesIn certain applications like graphics and magnetic recordings, substituting PETfilm would result in compromising performance characteristics of the product(e.g., strength, flatness, clarity, tear resistance, thermal stability and chemicalresistance). However, in other applications, for which certain PET filmperformance characteristics may not be needed, PET film competes with a widevariety of substitute materials. These applications tend to fall in the low end ofthe product range, where other plastic films (e.g., polyvinyl chloride, polypropylene,and polyethylene films) and paper may be considered as lower-priced substitutes.Applications for which a variety of substitute products may exist are primarilypackaging and general-purpose industrial applications.

BOPP Films (Biaxially Oriented Polypropylene) is one such close substitute producttype, which is comparable in terms of its broad physical and mechanical propertiesto Polyester films. However, there are pros and cons of using PET film or BOPPfilms and depending upon the application requirements, a choice of the substratewould be made. As a result of this, both PET films and BOPP films have largelydemarcated pockets where one is preferred over the other.

A Comparison of BOPP Films and BOPET (Polyester) FilmsPolyester film is considered as the premium plastic film in the flexible packagingindustry. This is also reflected by the difference in the volume of the two products.

Features BOPP BOPET

Water vapour barrier Excellent FairGas barrier properties Poor ExcellentBreak down voltage Poor ExcellentMachineability Fair ExcellentPrintability Fair ExcellentSuitability for metallising Poor ExcellentDensity (gm/cc) Low (0.91) High (1.39)Strength Fair ExcellentTemperature Sensitivity Poor Excellent


Polyester film when stretched in both directions gives excellent dimensionalstability, gas barrier properties, break-down voltage etc. BOPP, despite stretchingremains a ùlimp filmû. Polyester film has better handling capabilities for fluctuationsin temperatures etc. and is therefore also preferred in the less sophisticatedmarkets. In tropical countries PET is also preferred due to its moisture andoxygen barrier properties. In addition products where aroma retention is importantrequire the use of PET; e.g. coffee, tea.

On the other hand, the low density of BOPP (0.91 Vs. 1.39 for PET) makes it aùcheaperû alternative in packaging. However, the advantage of density is to someextent offset by the need to typically have a thicker film when using BOPP ascompared to PET for the same application. Further, since PET is not ordinarilyheat sealable, BOPP is preferred in heat sealable applications.

All over the world BOPP and PET have established their respective segmentsin the packaging market and overlap is insignificant. Even in times of decline inBOPP selling prices few years back, there was no visible impact on the growth inPET films consumption. This establishes the limited substitutability between thetwo products.

3.6.2 Business StrategyKey elements of the strategy are:● Attain cost leadership by way of capacity expansion and vertical integration.● Capture high growth markets and build good customer relationship.● To build strong global delivery capabilities with a judicious mix of on-shore,

near-shore and off-shore strategy.● Further broad base the product portfolio by investing in upgrading technical and

R&D capabilities.● Concentric and related diversification to bring stability in earnings.● Consolidate market position in key geographic locations.

Moving in this direction, the following initiatives have been taken by the Companyin the past and are planned for future:

● The setting up of 2 successive Thin PET film lines in Thailand was the firststep towards achieving cost leadership position along with diversification ofcustomer base.

● With the start up of the second Thin PET film line in Turkey in May 2008, thesubsidiary has an even stronger cost effective production base to serviceits expanding customer base in Europe, Middle East, Africa & CIS/Russia.

● Backward integration into the manufacturing of PET chips has strengthenedthe cost structure of the Company in Thailand and also of the subsidiaryin Turkey.

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● With the Extrusion Coating plant in April 2008 and the additional Metallizers inThailand and Turkey in May 2008, the Company has been able to significantlyincrease the share of value added products, in its sales portfolio thereby improv-ing its profitability on the whole.

● As a part of its strategy of concentric diversification, the Company has set up aCPP film manufacturing line in Thailand in March 2010. This has helped theCompany to establish itself as a complete packaging substrate provider.

● The new project to manufacture Silicone Coated film in Thailand will help theCompany to increase its presence in new product segments and thereby reducethe impact of the cyclical nature of the Thin Polyester Film industry.

● Various types of customer engagement initiatives by the Company have helped itto not only retain key customers, but also increase its customer base across theglobe. The wide network of distributors and agents has helped the Company togain access to all key markets of the world.

● The parent company in India has set up a dedicated Research and Developmentcenter which works closely with key customers, including end users of convertorsto develop specialty and innovative products.

● The Companyûs decision to relocate the investment in the new PET Thin filmline from Turkey to USA is another step towards geographically diversifyingits manufacturing base. This would help the Company to participate in thegrowth in the flexible packaging segment in the American region and increaseits market share substantially.

3.6.3 Distribution ChannelThe Company distributes its products to both domestic and overseas markets, with mainfocus put on the latter.

The product distribution is being made directly to the end users using its ownmarketing arms in USA and in China as well as commission agents across the globe.The indirect channel is mainly through distributors in designated areas. The salesthrough distributors and commission agents help support and even boost the salevolumes as these distributors and agents are in close proximity of the target markets,hence allowing for closer service provision to the customers with rapid delivery, andalso better market penetration to access small customers.

Value of total film sales to end users and distributors are as follows. Sales made throughcommission agents are included in ùEnd Usersû segment.


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STANDALONE SALES 2008-09 2009-10 2010-11

Customers Bt. Mn % Bt. Mn % Bt. Mn %

End Users 1,384.94 46.61 1,773.03 61.90 2,986.43 60.43

Distributors 1,586.57 53.39 1,091.50 38.10 1,955.84 39.57

Total Film Sales 2,971.52 100.00 2,864.54 100.00 4,942.28 100.00

CONSOLIDATED SALES 2008-09 2009-10 2010-11

Customers Bt. Mn % Bt. Mn % Bt. Mn %

End Users 3,984.70 59.86 4,391.10 63.02 7,375.53 68.50

Distributors 2,672.46 40.14 2,577.23 36.98 3,743.92 31.50

Total Film Sales 6,657.15 100.00 6,968.32 100.00 11,119.45 100.00

3.6.4 Markets and competitive environment3.6.4.1Global Demand and supply

The growth in packaging has over the years shifted the production and usagepatterns of PET films. The Companyûs relevant segments of Packaging, Industrialand Electrical constitute 98% of the total demand and the traditional high-endtechnology segments like magnetic media and imaging segments are reduced toonly 2% of the total consumption due to technology transformation. Polyplexcurrently produces only thin PET films, which represents three-fourth of the overallglobal PET film demand. The Company has also decided to foray into the ThickPET film segment by putting up a manufacturing line in Thailand, which is underimplementation.

Better packaging not only improves the shelf life of the products but is also essentialfor improving product appeal in a highly competitive consumer goods industry.Flexible packaging also plays a key role in source reduction on the principle of ùuseless waste in the first placeû which has ensured higher-than-GDP growth in theflexible packaging industry across the globe. PET film, being a higher-end substratewithin packaging, has grown more rapidly than other substrates, growing at anaverage of about 8-10% per annum. Demand in packaging is quite resilient as itrelates to consumption of food products and consumerstaples which are to a largeextent non-discretionary in nature. This moderated the impact of the global economicrecessionary environment on the industry in 2008, as compared with some of theother segments like industrial and electrical which had been impacted more and hadwitnessed a contraction in demand in 2008. The revival of demand growth in 2009and 2010 has also been faster in the packaging application as compared to otherapplications of Thin PET films.

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An increase in the purchasing power in the developing countries has brought withit a large rise in the per capita consumption of packaging material. As a resultof this, Asia (excluding Japan & Korea), is the largest market for PET filmswith almost one-third of the PET films produced being consumed in thisregion. At the same time, per capita consumption of packaging material indeveloping countries is still very low as compared to the mature markets. The keydrivers of demand growth in these regions are the increase in the share oforganized sector, increasing consumerism, changing demographics and theresulting need for better and more convenient packaging.

Source: Company/Industry estimates

A similar trend is also evident on the supply-side with most of the new capacitiesbeing added in low-cost developing countries. Most of the new capacity is alsofocused on the packaging segment, with an emphasis on high productivity andlow operating costs. This has adversely impacted the traditionally large producersof PET film operating with high cost structures, who have now been forced toconcentrate in the emerging niche technologies in PET films like films for LCDs,solar panels, touch screens and specific high-end applications within packaging.While trade defense measures like anti-dumping and countervailing duties areon the rise in an increasingly competitive market environment, they are unableto address the inherent problems of unproductive assets operating in thedeveloped countries producing regular films.

During the year 2010, the Thin PET industry witnessed a Demand supplyimbalance scenario due to the following main reasons:

Market Developments● Demand continued to grow despite the Economic Crisis in 2008-09.● There had been inadequate matching capacity additions.


Structural changes:● Closure of some old uneconomic lines● Diversion of capacity from packaging to industrial segment as well as

conversion of thin film lines into intermediate and thick films for newapplications.

New applications● Optical industry /Photovoltaic (PV) industry in Advanced World.

The above factors ensured that the demand for Thin PET film globally in theyear 2010 remained more than the supplies, thereby increasing the sellingprices to historic highs. This in turn significantly improved the operating marginsof most of the manufacturers in this industry. These exceptionally high marginshave attracted a lot of new investments in the Thin PET film industry. Most ofthese planned expansions are expected to come online in later half 2011 andthroughout 2012.

We expect global PET film growth rates to be at about 8-10% in the year 2011,with the demand in the South East Asian region growing at a higher rate of10-12%. The overall capacity addition in 2011 and 2012 is expected to be higherthan the growth in demand but the actual timing of the additions will determinewhether there will be a temporary oversupply situation for an interim period of6-9 months. Companies with consistent quality products, access to internationalcustomers and a better supply chain model stand a better chance of participatingin the market growth and improving/maintaining their margins above the industryaverages.

3.6.4.2Industry SituationGlobal competitionThe global Thin PET film manufacturers can be classified into 3 main categoriesby size of their production capacity:(i) World majors with production capacity of over 100,000 tons per year (e.g.

Dupont-Teijin, Mitsubishi and Toray, Cifu, Polyplex, Flex, Jindal etc).(ii) Mid-size players with production capacity between 50,000 - 100,000 tons

per year (e.g. Kolon, SKC, etc.) and(iii) Small / local producers with production capacity of less than 50,000 tons

per year

Demand for PET film for magnetic media application has been high in the past,prompting major producers to focus mainly on this segment. Competition in themagnetic media segment is thus confined only to these major ones based on theirlong and well established expertise and experience.

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For other PET films including thin film, competition is seen among all groups ofproducers thanks to the consistently rising demand, especially for thin film whichis used in packaging, industrial and electrical segments where healthy growthof demand has been recorded in the past. Thus small, mid-sized and majorproducers (including Polyplex group) have expanded their capacity to cope withthe increasing demand in these segments. This has led to the expectationof higher market share by producers in various countries which have surplusproduction capacity.

Domestic competitionThailandûs PET film market is of small scale as compared to the global PET filmmarket. As per our estimates, demand in Thailand is approximately 25,000 tonsper year with growth rate for 2011 expected to be about 8-10%.In the past,domestic producers have put emphasis on producing BOPP film rather than anyother types. PTL has principally focused on PET film since its inception inThailand and started with one PET film line, within nine months set up a secondline as well. Over the years, PTL has had several other expansions in filmcapacity i.e value added films like metallized film, Thermal Lamination film,Silicone Coated film (under implementation) etc and related product diversificationlike manufacturing CPP film. The Company has also announced a project forThick PET film in Thailand. It is presently having the largest PET Thin filmproduction capacity in the country.

The production capacities of the various plastic film producers in Thailand are asfollows:

Production line Thai Film A.J. Plast.PTL*

(tons per year) Industrials Plc. Plc.

BOPP film 107,000 66,000 -

PET film 3,500 31,000 48,000

CPP film 3,500 - **15,600

BOPA film - 8,000 -

Metallized film 7,000 10,800 16,200

Thermal Lamination film - - 9,000

Other coated films 3,000 - -

Total 124,000 115,800 88,800

Silicone Coated Film 725 Mn Sqm

Source: Form 56-1 of A.J.Plast Plc and T.F.I Plc

* PTL capacities are as approved by BOI. For actual attainable capacities, pleaserefer table below, under section ùProduction Capacityû

**Combined capacity p.a. as approved by BOI for CPP plain and metalized film


Most of PTLûs production is intended for exports while the other PET filmproducers have been more focused on the domestic markets. Despite thedisparity between domestic supply and demand, PTL does not foresee anyspecific threat due to its diversified sales portfolio.

Conclusion on PET film industryThe PET film industry has been expanding continuously in the past. The maindriving factor for the past five years has been the growth of the packaging,industrial and electrical segments. Meanwhile, PET film producers have boostedtheir capacity utilization and/or their production capacity aggressively to respondto the increasing growth of demand. During 2000-2010, global average capacityutilization of PET film manufacturers was in the range of 80-90% of rated ornameplate capacity, except in certain years where the utilization rate declinedto below 80% due to excess capacity built up in the industry. The levels of80-90% are considered a high utilization rate being close to the full machinerycapacity. In practice, some producers can produce lower than the nameplatecapacity due to the long use and hence the poor condition of machinery whilesome can produce with capacity utilization even higher than 100% of thenameplate capacity using new and modern machinery and based on theirlong-time expertise and experience.

Note: Data from industry sources/Estimates

Despite the rising demand for PET film, it is not easy for new entrants to competewith the existing players. It is because it is an industry that needs high levels ofknow-how, skills and expertise to ensure the exact product size, standard andspecifications required by the customers. Project management skills are alsoneeded to enhance efficiency and cost effectiveness that will lead to competitive-ness against other producers. Capacity expansion may be unavoidable to attainlarger size and hence economy of scale.

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Polyplex group has accumulated over 20 years experience in the PET filmindustry. It has been strengthened with consistent expansion in productioncapacity. Its management is highly competent. Delivery of products is efficient byhaving geographically distributed production bases and a widely spread salesand distribution network that allow for easy access to the customers.

The emphasis on the countries with high demand growth potential, productionand cost effectiveness and concentrating on business segments such aspackaging, industrial and electrical segments which have recorded healthygrowth all along has contributed to the Polyplex group becoming one of the Top5 producers of thin PET film (excluding capacity for magnetic media).

In view of tariff barriers imposed by importing countries such as anti-dumpingand anti-subsidy duties, the Companyûs parent company based in India hasexperienced such threat from both the EU and the USA several times. It has thusbeen keen on the issue, having information on the criteria and inspection processadopted by those countries and knowing how to deal with the problem. It is anoutcome of the understanding of the process, that USA has levied zero duties tilldate under the anti-dumping measure against the parent company.

As regards Thailand, an Anti Dumping petition was launched by the USAmanufacturers of PET film against PET imports from 4 countries i.e. China,Brazil, Thailand and UAE in September 2007. In the final determination by theInternational Trade Commission (ITC) in October 2008, a negative injury rulingwas given in favor of Thailand, whereas the anti-dumping duty rates were notifiedagainst the other countriesû imports.

In March-2007, the Government of Brazil had initiated an anti dumpinginvestigation against Thailand besides India, against imports of PET films intoBrazil. The company as also its parent company in India had fully cooperatedwith the same and submitted their detailed questionnaire responses. As a finaloutcome of this investigation, an Anti Dumping duty of about 28 cents/Kg onimports from Thailand to Brazil and about 9 cents/Kg of Anti Dumping andCountervailing Duty on imports from India to Brazil has been levied.The Companyûs export sale to Brazil is insignificant as compared to the total salesvolumes. As such, the adverse fall out of the investigation by the Governmentof Brazil has had a minimal impact on its sales.

In December 2010, the Government of Brazil initiated an anti dumpinginvestigation against UAE, Mexico and Turkey, in respect of PET film importsinto Brazil. The companyûs subsidiary in Turkey (Polyplex Europa) submittedresponses to the questionnaires, as required by the Brazilian Government and


also cooperated in providing the required data during the onsite verificationat Turkey in Juneû11. The preliminary determination of the investigation isexpected to be known over the next few months. Currently, Polyplex Europaûsexports to Brazil are not a very significant portion of their overall sales volumesand as such, the management does not expect any major impact from anyadverse fall out of this investigation.

The company is undertaking all the safeguards to insulate against the risk arisingout of anti-dumping duties and other protective barriers imposed by the importingcountries.

Outlook for the PET film industry:● Global demand for Thin PET films is expected to grow at a CAGR of 8-10%

over the next 4-5 years.● Demand growth for the products in the Flexible Packaging segment in

the South East Asian region is expected to be about 10-12% in 2011and 2012.

● Mid size and new producers would increasingly look to diversify theirproduct range from commodity grades to specialty grade films to improvemargins.

● Addition to global capacity during the next 1-2 years is expected tobe higher than the growth in the demand, thereby correcting thedemand-supply imbalance witnessed in 2010.

● New entrants from China have been increasingly dominating the market forPET film in the last 2-3 years, but their production is expected to mainlyfulfill domestic demand which is growing rapidly.

● The cyclical nature of the industry would continue.● Dominance of the existing 3-4 large producers with market share of about

25-35% is likely to continue though with a reducing share. However,decline in their traditional market segments and slower growth in theirhome markets has constrained their ability to improve their PET filmoperations. Lowering production cost through acquisitions and jointventures with low-cost Asian countries, rationalization of capacity andcontinued emphasis on technology intensive niche products could bean important strategic response.

● The transitioning of the industry to Asia would pose higher competitivepressure in the years to come.

● Increasingly, the larger producers are trying to tie up strategic partnershipsor acquisitions in order to ensure growth, presence in diversified marketsor products or even as a measure to acquire technology for newer andsophisticated product range.

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3.6.5 Manufacturing of product3.6.5.1Production

PTL is having 2 plots of land, one at No. 60/24 Moo 3, Siam Eastern IndustrialPark, Rayong Province, with an area of 28 rai 50.9 square wah and the secondone is located opposite to this plot, at 60/91 Moo 3, Siam Eastern Industrial Park,Tambol Marbyangporn, Amphur Pluakdaeng, Rayong 21140 having an area of35 rai, 2 nang, 54.80 square wah. The Companyûs PET thin film lines, Metallizedfilm lines and the Polyester Chips plant are located on the first plot of land.The Extrusion Coating line, the Cast Polypropylene (CPP) line and the SiliconeCoating line (under implementation) are on the second plot of land. Duringthe year, the Company invested in a new plot of land, adjacent to the existingfactory in Rayong, with an area of 35 rai, 2 Nang and 66.5 square wah, forfacilitating future expansion projects.

3.6.5.2Production capacityPTL currently has two PET film production lines, two Metallized film lines, oneContinuous Processing PET resin manufacturing plant, one Batch processingPET resin plant, one Extrusion Coating line, one CPP plain and one CPP metalizedfilm line. A project for setting up Silicone Coating line is underway and is expectedto start operations by Q3 2011-12.Capacity of Polyplex group as on 31st March2011 is as follows:

Note : BF = Base FilmMF= Metallized FilmCF= Coated Film


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Product Type India Thailand* Turkey Total Unit

PET Plain Film 51,000 42,000 58,000 151,000 MT

PET resin 77,600 52,500 57,600 187,700 MT

Metallized Film 11,800 11,000 11,000 33,800 MT

BOPP Film 35,000 35,000 MT

CPP Plain Film 10,000 10,000 MT

CPP Metallized Film 4,200 4,200 MT

Thermal Lamination Film 150 150 Mn Sqm

Silicone Coated Film 160 ** 160 Mn Sqm

* Capacities for Thailand above are attainable capacities and capacities approvedby BOI based on theoretical output are higher. For BOI approved capacities inThailand, please refer table above under section ùDomestic competitionû.

**Silicone Coating Project with an attainable capacity of 600 Mn Sqm is underimplementation and expected to commence commercial production within Q3of FY 2011-12.

The capacity utilization rates for the Plain and Metallized film lines inThailand and in Turkey are as follows:

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3.6.5.3Major raw materialsPET resinPET Resin (polyethylene terephthalate resin) is the major raw material inthe production process for PET films. In beginning, the company had procuredmost of its PET resin requirements from two unrelated suppliers. The requirementof procuring PET resin from outside suppliers have gone down since 2004/05after the company commenced production of its captive PET resin in two phases.The Companyûs subsidiary in Turkey also has an in-house production facilityfor PET resins.

Purified Terephthalic acid (PTA) and mono ethylene glycol (MEG):The major raw materials for PET resin production are purified terephthalic acid(PTA) and mono ethylene glycol (MEG). To ensure uninterrupted procurementof raw materials the Company has currently tied up with one local supplier eachfor PTA and MEG for PTL. The subsidiary in Turkey is importing PTA from Europeand MEG from Middle East.

The company enters into Annual contracts as per which 100% of the companyûsrequirements would be supplied as per the specified price formula throughout thecontractual period (s).

Major Raw materials for the Extrusion Coated Film production:Apart from PET film, which comes mostly from the companyûs in houseproduction, the major raw materials for the Extrusion Coated film productionare BOPP base film and Coating chemicals such as LDPE and EVA. Thecompany has been meeting its BOPP film requirement by procuring from alocal manufacturer. However, the company is also exploring other optionsfor importing BOPP film from Korea / other countries in the ASEAN region.The coating chemicals i.e LDPE and EVA are being imported from Malaysiaand Korea respectively. Due to higher delivery lead time, the company is requiredto maintain slightly higher levels of inventory for these coating chemicals.The Company is also exploring the possibility of procuring these raw materialsfrom local sources.

Major Raw materials for the Cast Polypropylene Film production:The major raw materials for the Cast Polypropylene film production are HomoPolymer and Co-Polymer. Homopolymer is being procured locally whileCo-Polymer is being imported from Singapore. The company continues to look outfor alternative sourcing options and would decide on an appropriate raw materialprocurement strategy for this product line, based on relevant factors such aspricing, quality, delivery lead time etc.


The value chain for the Companyûs PET film business is depicted below:

The value chain for CPP film is given below:

The value chain for Thermal Lamination film is given below:

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3.6.5.4Impact on the environmentThere is a negligible impact on environment caused from the polyester filmproduction process since PET in both film and resins are generally recyclable. Forits Polyester resin line, it has the required EIA approval and submits regularreports required as per EIA approval to the concerned authorities.

Since its commencement of production in March 2003, PTL has not faced anysignificant problems relating to the environment. Inspection by the Industrial Fac-tory Department has been undertaken on a regular basis, the result of which hascome out that the Companyûs manufacturing process poses no environmentalimpacts.

All our product lines in Thailand have the following certifications:● ISO 14001:2004 certification on Environment Management system● ISO 9001:2008 certification on Quality Management system● OHSAS 18001:2007 certification on Occupational Health and Safety Man-

agement system● ISO 22000:2005 certification on Food Safety standards

All our product lines in Turkey have the following certifications:● ISO 14001:2004 certification on Environment Management system● ISO 9001:2009 certification on Quality Management system● OHSAS 18001:2007 certification on Occupational Health and Safety Man-

agement system● BRC/IoP - certification on Global Standard For Packaging and Packaging

Materials (For Plain and Metallized Film lines)


Before making a decision to invest in the shares of the Company, investors should prudently considerthe information about risk factors described in this section and all information contained herein. Apartfrom the said risk factors, there are still other unpredictable risks that may adversely impact theCompanyûs operating results.

The key risk factors are:4.1 Industry Cycle

The industry cycle of PET film hinges on the spread between the PET film price and the pricesof PTA and MEG which are major raw materials. Whenever the demand supply balance favorsthe suppliers, the PET film and raw material price spread usually widens, thereby encouragingthe manufacturers to increase production by expanding their capacities. On the contrary, if PETfilm supply is larger than market demand, the film price will drop, hence narrowing the spreadbetween the film and raw material prices. This cyclical nature will inevitably affect everyproducerûs revenues and profits. To illustrate such cyclical impact, the movement of profitbefore tax/sales of PTL (Consolidated), is shown in comparison with that of the prices of PETfilm and raw materials, as below:

Comparison of profit before tax as a % to sales, of PTL on a consolidated basis, withprices of PET film and raw materials (Consolidated - Average for PTL-Thailand andPE-Turkey)

4. Risk Factors

Source: Company information

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The cyclical behavior can be seen in the above data of the last 8 years, which has directimpact on the operating results of PET film producers as well as Polyplex.

To mitigate such risk, the Company has sought to undertake the following:● With high productivity levels and cost control measures, Polyplex believes it is one of the

lowest cost producers of polyester film in the world which will help it deliver betterfinancial results than the other constituents of the industry.

● Diversify its product portfolio by introducing new products like Extrusion Coated Film,Cast Polypropylene Film), the Silicone Coating Line (project implementation underwayand expected to start commercial production in Q3 of FY 2011-12), Thick PET Film(project implementation underway and expected to start in H1 of FY 2013-14) to mitigatethe risk of over dependency on a single product and single industry.

● Accessing customers operating across the globe in the flexible packaging and industrialsegments by presenting alternative sourcing options from its manufacturing locationsin India, Turkey and Thailand and its warehousing & distribution set up in US and China,thereby mitigating the risk of over dependency on few customers.

● Diversified manufacturing and distribution base helps to mitigate the risk of volatilemarkets. For Eg: South East Asian markets are quite volatile in nature, whereasdeveloped markets of US, Europe, Japan etc are less volatile. Polyplex tries to mitigatesuch risks by having a diversified sales portfolio.

● Increased focus on new product development through R&D or technology acquisitionsbesides creating a strong technical services team are likely to be additional differentiatorsbetween Polyplex and its competition

4.2 Risks relating to uncertainty in prices of the product and raw materialThe basic raw material for production of PET film is PET resin, which is in turn produced fromPurified Terephthalate Acid (PTA) and Mono Ethylene Glycol (MEG).

Since the cost of resin is the single largest component of the total production cost of Polyesterfilm, the fluctuation in the resin price may hurt the Companyûs operating margins dependingupon the ability of the Company to pass the increase in costs to its customers. As selling pricesare usually negotiated on a monthly / quarterly basis, in a balanced demand supply situation,PTL is usually able to adjust the selling prices following any changes in the PET resin costand other operating costs.

The above graph of historic Selling price and Raw material price movement demonstratesthe correlation between the raw material cost and the selling prices. In most of the years themovement in the selling prices have been following the trend of the raw material cost exceptfor years where other factors influenced the prices like 2006-07 (down cycle in PET film


industry due to imbalance in supply demand situation) and 2008-09 when the world economieswent through a turmoil.

During the FY 2010-11, the company witnessed a major demand supply imbalance in the PETfilm industry (in favor of manufacturers). Some of the main reasons which contributed to thismarket disruption are as under:● Market Developments

❍ Over the past few years demand continued to grow despite the Economic Crisisin 2008-09.

❍ There had been inadequate matching capacity addition (excluding China) in 2008and 2009.

❍ Strong revival of demand post economic crisis in 2010.

● Structural changes :❍ Closure of some old uneconomic lines❍ Diversion of capacity from packaging to industrial segment as well as conversion

of thin film lines into intermediate and thick films for new applications.❍ Heightened anxiety with the convertors to develop alternative supply options with

a clear preference for onshore/ near shore suppliers.

● New specialized applications❍ Optical industry /Photovoltaic (PV) industry.❍ Shift of focus by world majors in Thin PET film from commodity film to specialized

Thick PET film applications due to higher and relatively more stable margins andlimited competition in these applications

The above factors resulted in a very tight supply situation of BOPET Films in 2010 andall manufacturers in this industry were able to increase selling prices by a very high proportion,without any corresponding increase in raw material costs, thereby improving margins toexceptionally high levels.

The exceptionally high margins witnessed in 2010 have attracted new investments in thePET thin film industry, mainly in India and China. This is expected to balance out the gapbetween demand and supply.

Analysis of historical data shows high correlation between PTA/MEG - polyester film prices.The spread between two intermediates would vary depending upon the demand-supplysituation of the commodity. Also sudden and sharp movements in raw material prices mayaffect the correlation for some time.

The chart below shows the past trend in the pricing of PET film and PTA and MEG:

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Source: Industry information

The above industry data of the Far East demonstrates that variations in the raw material pricesby and large tend to get passed on to the end-customers. The demand-supply balance of PETfilms which could vary across regions could impact margins. The spread between the rawmaterial and PET films, especially over the last few years, has moved in a band. PTLûscontracts with some customers provide for a quarterly/periodic review in pricing which enablesit to adjust for any raw material cost movement.

The Company monitors world and local input price trends carefully and determines itsprocurement plans accordingly.

4.3 Risk associated with reliance on only a few raw material suppliersThe 2 major raw materials for the company, PTA and MEG are well traded commodities,available from a variety of sources in this region. However, the company is meeting itsrequirement domestically, by procuring each of these raw materials 100% from a single localsupplier, thereby enjoying certain distinct advantages of shorter lead time/lower raw materialinventory carrying levels etc. The company has entered into long term / yearly contract for thesupply of the raw material to ensure its availability. These contracts also have a supplyguarantee clause to ensure that the risk of buying 100% from a single source and also a singleplant operation is mitigated. And as far as the pricing is concerned, since it is linked tocertain standard international benchmark rates there is high degree of transparency.

For the Extrusion Coated film production, apart from PET film, the major raw materials areBOPP base film and Coating chemicals such as LDPE and EVA. The company has beenmeeting its BOPP film requirement by procuring it both locally as well as importing frommanufacturers within the ASEAN region. The coating chemicals i.e LDPE and EVA are alsoboth being locally as well as imported from the ASEAN region.

The major raw materials for the Cast Polypropylene film production are Homo Polymer andCo-Polymer. Homopolymer is being procured locally while Co-Polymer is being imported from


Singapore. Since the production from this new line has recently started in March 2010, thecompany would continue to look out for alternative sourcing options and would decide on anappropriate raw material procurement strategy for this product line, based on relevant factorssuch as pricing, quality, delivery lead time etc.

4.4 Risk from environmental regulatory measuresAll the production lines of PTL, except for the Polyester resin line, do not require anyenvironmental impact assessment (EIA). For its Polyester Resin line, the Company hasthe required clearance from the regulatory authorities and utmost care is taken to ensurecompliance to the same.

For the Silicone Coating line or the Thick Film line under implementation, PTL would not berequired to get any EIA approval.

4.5 Risk from competition from existing manufacturers and entry of new playersWith consistently rising demand and healthy growth potential, the PET film industry attractsnew capacity investments from existing large manufacturers (such as Polyplex) who arewell-established companies with long experience in this industry, as well as medium to smallproducers and new entrants with strong capital to accommodate investment in PET film plantsand machinery.

Compared to these players, PTL has a lower cost of production and focuses on producingthin film which is PET film of high growth potential to serve flexible packaging, industrialand electrical applications. For those who are new entrants, they need to improve and developtheir production competence to ensure competitively low cost against the existing players,the process of which will certainly take some time. Besides, they need to build up theircustomer base which can happen gradually through supply of consistently good qualityproducts. Thus, PTL is confident that it will readily be able to compete against both worldleading producers as well as newcomers. While the financials of the company and group wouldbroadly reflect the cyclical trend of the industry, it would be able to demonstrate superiorprofitability in any market situation due to its competitive edge as reflected in lower costs,good quality, higher productivity, value added product mix and global sales reach.

The Company has strategically embarked on various expansion projects in Turkey andThailand over the last few years and also has two other expansion projects in the pipeline inThailand and a new PET thin film line investment under implementation in the US, whichwill further strengthen its competitiveness (Refer Section 3 - Business Overview for detailson Projects commenced during the year and Section 5 - Future projects for new projects inthe pipeline) The company has been continuously evaluating other growth options in PETfilm / value added products / related areas like CPP / BOPP/ Silicone Coated Films at allexisting locations in Turkey/Thailand US, while also continuously evaluating growth optionsin other new locations/new product lines. With the start up of the Extrusion Coated Film line,

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Cast Polypropylene Film line, and the projects under implementation in Thailand i.e SiliconeCoating Film and Thick PET film line, the company aims to further broad base its productoffering to its customers, and also diversify the risks associated with the cyclical nature of thePET film industry. The company has also been evaluating possibilities for any acquisitions tofurther expand its manufacturing base and also to improve its cost structure, product offeringand market reach / penetration.

4.6 Risk from trade barrier measuresTrade barrier measures taken by various countries are broadly of two major types:a) Anti-dumping (AD): An anti-dumping duty can be imposed on imports if the ex-factory

prices of such imported products are proved to be lower than the local selling prices ofthe similar products in the countries of the exporters. For the past years, the countriesadopting this measure are the European Union member countries and the US againstsuch countries as India, China, Brazil and South Korea.

b) Anti-subsidy: A countervailing duty (CVD) can be imposed if the government or anygovernment agency provides any benefits or privileges specifically to any company orexporter of such country.

Such tax measures will cause import duty on the goods produced and exported fromthe targeted countries imposed at such a high rate that such goods will carry higher pricesand hence have difficulty to compete with the products of the rivals. For manufacturers havinga regional manufacturing base in such locations, such trade defense measures can be anopportunity if anti dumping duties are levied against imports from the Asian low cost producers.

The company is undertaking all the safeguards to insulate against the risk arising out ofanti-dumping duties and other protective barriers imposed by the importing countries.A geographically well-diversified sales portfolio like ours will help mitigate the adversefall-out of such an action, if any.

In the year 2008, in the US Anti Dumping petition against producers of PET film from Thailand,China, Brazil and Middle East, there was a negative injury ruling by the International TradeCommission (ITC) against Thailand and consequentially, there is no duty against Thailandimports into the US market. This has definitely given an opportunity for the companyto increase its share on the US market through its distribution company Polyplex Americas Inc.

As an outcome of the Anti-Dumping Investigation by Brazil in the year 2007, against Thailand,an Anti Dumping duty of about 28 cents/Kg on imports from Thailand to Brazil had beenimposed. However, the impact of this on the Company is minimal, as the sales to Brazil arealmost negligible.

In December 2011, the Government of Brazil initiated an anti dumping investigation againstUAE, Mexico and Turkey, in respect of PET film imports into Brazil. The Companyûs subsidiary


in Turkey (Polyplex Europa) submitted responses to the questionnaires, as required bythe Brazilian Government and also cooperated in providing the required data during theonsite verification at Turkey in Juneû11. The preliminary determination of the investigationis expected to be known over the next few months. Currently, Polyplex Europaûs exportsto Brazil are not a very significant portion of their overall sales volumes and as such, themanagement does not expect any major impact from any adverse fall out of this investigation.

4.7 Risks from future projectsThe major risks associated with any new Projects are as below:● Market Risk: Since Polyplex has a global reach and an extensive marketing and

distribution network, the Company does not foresee any major risk in developing themarkets new products. In the case of the Silicone Coating project, the market researchdata and the market experience already available with the parent company can alsobe leveraged upon to ramp up the sales once the Project is implemented.

● Competition Risk: The Company believes that its cost structure would be globallyvery competitive and will be one of the major advantages to gain an edge over someof the existing producers/new entrants.

● Project Implementation risk: Implementation of the Project within the Budgetedcost and timeline is another critical aspect for the success of any Project. Based onpast experiences, it can be very well said that the experienced Projects team atPolyplex should be able to achieve successful implementation of new projects on timeand within Budgeted costs except for un-foreseen circumstances.

● Funding Risk: Long term Debt to the extent of 65-75% of the Project cost is generallyborrowed by the Company and the balance is funded out of internal accruals. Basedon the good relationship with existing banks, the Company is quite confident of raisingthe required financing for its new Projects at competitive terms and conditions.

● Currency Risk: For any new project, the currency of borrowing is decided, basedon the projected operational cash flows of the project. The currency which has themaximum surplus in the operational cash flows is chosen to be the currency for theloan. This creates a natural hedge for the loan repayments, as and when therepayments start. The company also has internal FX guidelines to cover net exposureof Project costs, in various currencies by booking appropriate forward contracts, sothat the risk on the initially estimated overall Project cost, on account of currencyfluctuations is minimized.

Apart from all the Project specific risks and their mitigation plans as discussed above, theCompany would also like to mention here that the overall Project risk of any new Project iscovered by taking appropriate Insurance policies to cover various risks such as Erection andConstruction all risks, Marine risks, Loss of Profit coverage due to delay in Project Start-up etc.

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4.8 Risk from dependence on the parent companyPolyplex Corporation Ltd. (PCL), through direct and indirect shareholding, currently controls51% of the paid up shares in the Company.

In the initial 2-3 years of its incorporation, PTLûs core management team consisted ofpersons who were previously employed by PCL and they played a vital role in successfullyestablishing PTLûs operations ahead of the schedule and at a lower-than-estimated cost,together with ensuring high productivity levels resulting in the Companyûs ability to producequality products at a competitive cost. However, after about 4-5 years of running, onceoperations were fully stabilized, the company successfully implemented a program forreducing the dependence on expatriates by increasing the proportion of local Thai staffin operating/managerial positions and has been managing the production and operationsefficiently thereafter.

The Companyûs present management team is composed of experienced key personnelin production, marketing, distribution and accounting/finance. It has thus been able to runthe business on its own without reliance on the parent company. It is only in the researchand development area and the implementation of new projects, where the parent companyprovides know-how and technical assistance to the Company.

PTLûs business operation is independent from PCL in such undertaking as public offeringof equity, borrowing of loans, and other investments in the future, for instance. The parentcompany need not request any approval from any government bodies except for reportingof significant events to two stock exchanges where it is listed, namely Mumbai StockExchange and National Stock Exchange.

The Company is confident that there will be no conflict of business interest between PCL andPTL on account of the following:❍ It is Polyplexûs policy in business operation that there is an equitable distribution of

business between the various manufacturing units aligned to efficient servicing ofcustomers.

❍ The investment in PTL and its subsidiaries is higher as compared to PCLûs assets,hence the success of PTL being critical for PCL.

4.9 Risk from sponsor group holding about 51% of total sharesCurrently, PTLûs major shareholder is PCL (As of March 31, 2011 the promoter Mr. Sanjiv Sarafand related parties control 46.93% in PCL), holding 16.50%, and Polyplex (Asia) Pte. Ltd.(çPAPLé) which is wholly owned by PCL, holding 34.50%, thus in aggregate holding 51% ofPTL paid-up common shares of Bt. 800 million. Thus, in matters that require a three-fourthsmajority vote of shareholders, the minority shareholders can successfully oppose corporateactions undertaken or supported by the majority shareholders. However, the parent


company will continue to play a vital role in determining the Companyûs policy on businessadministration and operation.

However, PTL has set up a three-member Audit Committee to provide for an audit of theoperations and the management. Besides, PCL is listed on the Stock Exchanges in Indiaand abides by the Corporate Governance regulations prevailing for listed companies in India.

4.10 Foreign exchange riskMost of PTLûs products, i.e. about 75-85%, are for exports, which are mostly denominatedin US dollars and Euro. As against this, raw material (PTA & MEG) prices are also linked tothe US dollar, although their payments are done in Baht and there are Long term loanrelated interest payments/loan repayments in USD and Euro. The company as at Mar 31st û11had Euro loans of about 6.2 million and USD loans of about 36.4 million. There are someexpenses which are in Thai Baht, i.e. locally procured raw materials, packing materials,salaries, utilities and other administrative expenses which have to be settled by incomefrom domestic sales and from the surplus income from USD/Euro exports. Thus, broadlyspeaking, PTL has a net surplus US dollar and Euro position on the trade front, which canbe hedged somewhat against repayment of its long-term loans. To the extent possible,the company has been trying to create a natural hedge to mitigate the risk from currencyfluctuations. On an ongoing basis, the company also takes forward covers, to cover the netsurplus exposure in USD and Euro.

Similarly, the Companyûs subsidiary in Turkey has a net surplus in USD and Euro currencieswhereas they have certain payments in the local currency, which is hedged from time to timeby taking appropriate forward covers.

The funding for new Projects of the company are also planned based on the future inflows fromthe Project Operations so that a natural hedge can be created to the extent possible

4.11 Interest rate riskAs of March 31, 2011, the Companyûs outstanding long term loans (consolidated basis)were Euro 18.2 million and USD 36.4 million, whereas outstanding short term loans wereUSD 6.4 Mn. The USD loans amounting to USD 6.1 million have already been swappedto fixed interest rate and the balance loans have floating LIBOR based interest rates. Almostall the Euro loans have floating EURIBOR based rates, except for Euro 0.2 Mn at thesubsidiary in Turkey which is swapped to fixed rate. The floating interest rate may put theCompany at a risk of rising financial cost if the interest rates move up. The company hasbeen constantly monitoring the interest rates and will take interest rate swaps for convertingthe liability into fixed rates, if considered beneficial.

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4.12 Risk from overlap of products and marketsThe product portfolio of PCL, PTL and PE is quite similar. In order to mitigate the risk fromoverlapping of products and markets, Polyplex has also evolved an equitable policy fordistribution of markets for PET film business between its Indian, Thailand and Turkeyoperations based on the several factors like product range, delivered cost to customer, supplylead times and preferential duty access. Based on the same, PTL would serve North America,South East Asia, Asia Pacific, China, Australia & New Zealand. PCL would serve SouthAsia, and South America. Turkey will serve, Europe, America, Middle East, Africa andCIS/Russian markets.

The Polyplex group also has a policy on future investments in polyester film / relatedareas between the Company and its parent company. Investments in India/SAARC regionwould be decided and made by PCL and its other subsidiaries (excluding the Company) whileinvestments In Thailand / ASEAN region as well as other countries would be in all likelihoodbe made by PTL or the subsidiaries in which the Company has a major stake. The aboveis subject to availability of Investible cash / ability to borrow debt by the existing / preferredCompany as per the policy.

4.13 Credit risksCredit risk of customers is another significant risk for any business. The Company managesthe risk by adopting appropriate credit control policies and procedures. All the sales, whichare on credit are secured either through a Letter of credit issued by the customer or bytaking appropriate credit insurance coverage for both domestic and export sales. The Companyalso takes extra caution in selection of any new customers and granting of credit.

4.14 Risk from European economic crisisSince the companyûs subsidiary in Turkey is mainly dependant on the European market,the recession in Europe has raised concerns regarding the potential impact of this recessionon our Turkey operations for this financial year. As of now, the subsidiary has not felt anydirect impact in terms of contraction in demand/ orders from its customers, which wouldimpact its operations or the profitability for the current year. In fact, during the FY 2010-11,the subsidiaryûs net profit went up by almost more than 5 times compared to the previousfinancial year due to the favorable market situation. Since most of our products are beingused in the packaging of consumer staples (food items, soaps, detergents etc), it may besaid that such products are recession resistant and as such, the impact of the recession isnot expected to be very significant. However, any weakening of the Euro currency, wouldimpact the the consolidated revenues/ profits of PTL, since the reporting currency of the Turkeysubsidiary is in Euro and most of its revenues are also Euro denominated, along with somesales in USD currency as well.


5.1 Future Projects5.1.1. Silicone Coating Line (PTL - Thailand)

In May 2009, the Board had approved investment in a Silicone Coating line, which willbe another value added product in the Companyûs portfolio of products. The parentcompany in India has been manufacturing this product since 2007 and has been quitesuccessful in establishing itself in the market. Hence, it was decided to Invest in anotherSilicone Coating line within the group. This project is being implemented in Thailand bypartially using the plot of land located adjacent to the factory in Siam Eastern IndustrialPark, where the companyûs Extrusion Coating Project and the Cast Polypropylene Planthave been installed.

Project Details● The Investment in this project is about USD 23 million● The capacity of this line would be dependent on the product mix run on the line

and could vary largely from 400 to 600 million sq. mtrs.● Target markets would be mainly Europe, US and Asia.● The usage of the film would be mainly as Release Liners for Label Liners, Graphic

Arts, Medical Liners etc and also be used in Shingle Tape application.

Project Rationale● This Project would help in further diversification of current PET film business● Presently, the use of Paper Liners is more common and it maybe said that Film

Liners account for only about 15% share in this application. However, there is abig opportunity for substitution of Paper liner with Film Liners due to certaincharacteristics of Film Liners which are better than Paper Liners (Eg: Film hashigher tear resistant properties as compared with Paper and can prove to be abetter Liner in labeling applications which operate in high speed machinery).

● This would also help us in differentiating ourselves with other Asian filmproducers, none of whom are present in Siliconizing business

● We will have the advantage of an integrated facility in comparison with stand alonesiliconizing producers in Europe and US due to a more competitive cost structure

● Capture the shortage of capacity in this segment by leveraging on the experiencegained in operating the similar product line in India.

5. Future Projects

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Status of the project:● The company has tied up Long term Debt financing of $ 16.5 Mn for part

financing the project, out of which loans amounting to USD 6.9 million have beendrawn until 31st March 2011. Balance project costs would be met out of internalaccruals of the company.

● The deliveries of main machineries have been received and are currently underinstallation. Test runs are expected to be conducted over the next few months

● The civil construction and electrical/mechanical works are expected to becompleted within Juneû11

● The commercial start up of this project is expected in the Q3 of financialyear 2011-12

● The BOI promotion certificate has been received

5.1.2. Expansion of Thin PET Film line capacityIn July 2010, the Thin PET film line expansion project was approved by the Board tobe implemented in the Companyûs subsidiary in Turkey. An Investment of USD 70 millionwas approved in a Polyester Film line alongwith an associated Polyester Chipsand Metallized Film line.

In its meeting held on 25th May 2011, the Board of Directors has approved relocationof this project to the USA.

Project Details:● Total Capital investment is estimated to be about USD 75 million● This would include a PET Thin Film Line of 8.7 metres width with a capacity

of about 31,000 TPA and a High speed Metallised Film line of 2.85 metreswidth with a capacity of about 8,600 TPA

● Investment to be made by a new company to be incorporated in the USA, whichwill be a 100% subsidiary of the Company and/or its 100% held subsidiaries

● Funding of the Project will be through Long Term Debt borrowing to the extentof 65-75% of the Project cost and balance will be funded out of internal cashflows of the Company and/or its subsidiaries

● The expansion is scheduled to be completed within 15-18 months from thetime of financial closure.

Project Rationale:Polyplexûs market share in the American continent has increased significantly postacquisition of the Trading Company in the US, in January 2006. With existing US PETthin film manufacturers shifting their focus from packaging applications to high endindustrial and electrical applications and no new capacities coming in the US, there isa scope for Polyplex to further increase its market share in the US. The Companyevaluated the option of either servicing the US market from its existing manufacturing


location(s) vis a vis setting up of a manufacturing base in the US. The Company feltthat an on shore location would be more competitive from a long term point of view ascompared to an off-shore supplier due to the following reasons:● Proximity to key markets leads to reduced cycle time, faster deliveries and

is clearly a source of differentiation in the eyes of the customer. Also this willhelp the company to reduce its logistics, delivery costs including lower workingcapital.

● Both the key raw materials i.e. PTA and MEG are surplus in North Americaand possibilities of co-location also exist to further improve the economics.

● Risk of Trade remedial measures like AD/CVD duties can also be significantlyreduced / eliminated.

● An additional location will also significantly diversify the overall business risk.

5.1.3. Thick PET Film line project ( PTL -Thailand)In its meeting held on 14th February 2011, the Board of Directors has approvedan Investment in a Thick PET film line in Thailand. In the recent past, there havebeen several structural changes in the PET film industry. Some of the large PET thinfilm producers are accelerating exit from the competitive commodity segments inpackaging (Thin films) & industrial (traditional Thick and Thin films) to electrical/electronicsegments (new Thick film applications) - as a long term competitive repositioningstrategy. This has prompted some major players of PET film to shift their focus fromcommodity Thin PET films to such specialized Thick PET films. While Thin PET filmwould continue to remain the core business of Polyplex, the company would evaluateopportunities in other related businesses, for sustainable growth in this industry.

Project Details● The Total Investment in this project (including working capital) would be about

USD 75 million● The project would include a PET Thick Film Line of 5.9 metres width with

a capacity of about 28,800 TPA and a Polyester Batch Process Chipsmanufacturing facility with capacity of about 28,000 TPA.

● The product range from the new PET thick film line would be thick film in therange of 23-350 micron thickness.

● Funding of the Project will be through Long Term Debt borrowing to the extentof 65-75% of the Project cost and balance will be funded out of internalcash flows of the Company.

● The start up of this project is expected in 18-24 months from financial closurei.e Approx H1 of FY 2013-14

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Project RationalePolyplex has become a preferred supplier of PET thin film to almost all the largeconvertors in major markets in the world. By implementing the project for PET Thickfilm, the company would have certain benefits as given below:● Diversification of risk from packaging dominated to industrial segments● Thick film offers a relatively higher margin and more stable business, thereby

mitigating the risk of volatility in earnings.● Would also give an opportunity to the company to meet the in house requirement

of Thick PET film for Extrusion Coated film line (existing in Thailand) and theSilicone Coating film line under implementation in Thailand

● Enhancement of presence in North East Asia (Japan, Korea and Taiwan)which are large markets for traditional thick films

● Leveraging existing sales and distribution network● Extension of inherent cost competitiveness - being a part of large manufacturing

facility leading to reduction in1. Capital cost2. Operating overheads - manpower, shared services, SG&A etc

5.2 Other Capital ExpenditureAs an ongoing effort to improve productivity, reduce losses, develop products and enhancequality control, PTL undertakes several small/medium capital expenditures on the basis ofcost benefit analysis. The total outlay over the next 12-15 months for such projects isestimated at about Bt. 100-150 million which includes some energy conservation schemes,apart from normal insurance spares and miscellaneous equipments for upkeep of themachinery.


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7. Shareholding Structure7.1 Shareholding Structure

7.1.1 SecuritiesPTL's current registered capital is Bt. 960 million of which, Bt. 800 million is paid up,divided into 800 million ordinary shares each of Bt. 1 par value.

7.1.2 The shareholding structure of PTL as on 31st March 2011 is as follows:

Name Ordinary shares %

Polyplex Corp. Ltd. (PCL) 131,999,940 16.50Polyplex (Asia) Pte. Ltd. (PAPL) 275,999,915 34.50General public 392,000,000 49.00Existing small shareholders* 145 0.00

Total 800,000,000 100.00

* Beneficial interest held by PCL and PAPL

PCL's shareholding structure as of March 31, 2011 is shown as below:

Name %

Promoter/Sponsor Group 46.93Institutional investors 7.71Non Institutional Investors (Corporate Bodies, Indian public, HUF) 35.43Other shareholders 9.93

Grand total 100.00

PAPL is 100% held by PCL and together PAPL and PCL hold 51% of PTL.

7.1.3 Dividend payment policyAs per the dividend policy stated in the prospectus, dividend is required to be paid outat rate of about 40% of the annual net profit, taking into account economic conditions,growth plans, future deployment opportunities, the Company's financial position andliquidity and subject to the approval by the shareholders.

The Board of PTL has recommended a dividend of Baht 1.94 per share for FY 2010-11,out of which Bt 0.59 per share was paid as Interim dividend in November 2010 and thebalance of Bt 1.35 per share will be paid out in August 2011, post approval by theShareholders in the Annual General meeting to be held in July 2011.

The following graph shows the comparison of dividend payment for the last 7 years,since the company's public listing in December 2004. The dividend per share is in line

6. Legal Dispute-None-

57

Company Secretary Board of Directors Audit Committee

Managing Director

Head - Chief Head - Head Sales & Business Head -Financial Officer Operations Marketing SARALAM

Corporate FinanceHead-Production &

SE Asia Manager-SARALAM PlantEngineering

Costing and Head - Film & ChipsDomestic market

Accounts Plant

ITHead - Cast

AmericaPolypropylene Film plant

Legal & Tax TPM Europe

Investor Relations HR & Industrial Relations Others

Quality Assurance &Technical Services

Purchase & Stores

7.2 MANAGEMENT STRUCTURE

with the company's policy of paying dividend at 40% of net profits. In the years when theprofit has been lower due to cyclical downtrend in the PET film industry, the dividend pershare has also come down.


PTL has a board of directors and an audit committee. There is a provision to appoint otherneed-based committees as may be appointed by the shareholders or the board of directorsfrom time to time. The board members and executive officers are qualified persons withcomplete qualifications as per Section 68 of the Public Limited Companies Act B.E. 2535and as per the Notification of the Securities and Exchange Commission (SEC) No. KorJor.12/2543 Re: Application for Permission and Permission to Sell Newly Issued Shares datedMarch 22, 2000.

Details of the board of directors and other committees are as follows:7.2.1 Board of Directors

As of May 31, 2011, PTL's Board of Directors is composed of eight members as follows:1. Mr. Manu Leopairote Board chairman and Audit Committee Chairman2. Dr. Virabongsa Ramangkura Director (and Audit Committee member)3. Mr. Shiraz Erach Poonevala Director (and Audit Committee member)4. Mr. Sanjiv Saraf Vice Chairman5. Mr. Praphad Phodhivorakhun Director6. Mr. Pranay Kothari Director7. Mr. Ranjit Singh Director8. Mr. Rohit Kumar Vashistha Managing DirectorMrs.Supritha Pai Kasturi is the secretary to the Board of Directors

Authorized signatoriesAny one of the four authorized signatories, namely Mr. Sanjiv Saraf, Mr. Pranay Kothari,Mr. Ranjit Singh, and Mr. Rohit Kumar Vashistha are empowered to sign with the Company'sseal affixed.

Power and duties of the board of directors (the Board)The Board of Directors has the powers, duties and responsibilities to faithfully and prudentlyconduct the operations of the Company in accordance with the Company's objectivesand Articles of Association, applicable laws and resolutions of the shareholders' meetings,for the benefit of the Company. A summary of the substantial duties and responsibilitiesof members of the Board of Directors is set out below:1. to hold the annual general meeting of shareholders within 4 months from the close of the

accounting period;

2. to call the meeting of the Board of Directors at least once every calendar quarter

3. to arrange for the preparation and submission of the audited balance sheet and profitand loss statement at the end of each accounting period to the shareholders' meetingfor its consideration and approval;

4. to authorise any one or several directors to perform any action on behalf of theBoard of Directors under the supervision of the Board of Directors, or granting the

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power-of-attorney to such designated director(s) to perform any action within thespecified time as the Board of Directors may think fit; provided, however, that theBoard of Directors has the sole discretion to revoke or modify such designateddirector or power-of-attorney as the Board of Directors may think fit.

For this purpose, the Board of Directors may authorize the Executive Committee, if any,to conduct any activities within the specified scope of work, duties and responsibilitiesof the Executive Committee. No authorization will entitle the Executive Committee toconsider and approve the transaction which may cause a conflict of interest betweenthe Executive Committee or any related person or interested person as the one partyand the Company or its subsidiary companies as the other party. However, an exceptionis granted where the transaction conforms to the approved policies and rules of theBoard of Directors;

5. to determine the goals, prospects, policies, business plans and budgets of the Company,and to ensure that the management work performed by the Executive Committee, if anycomplies with the set policies. However, the Board of Directors needs to obtainthe resolution of the shareholders' meeting before entering into these legal transactions,for instance, increase or reduction of capital, issue of bonds, sale or transfer of all orany substantial parts of the Company's businesses to any third party, purchase oracceptance of transfer of other businesses, amendment to the Memorandum ofAssociation, and so on.

The Board of Directors is also responsible for ensuring the Company's compliancewith the securities and exchange law and rules of the SET, for instance, rules concerningthe entry into connected transactions and concerning purchase or sale of substantialassets, including any law governing the Company's business;

6. to review the management structure and appoint the Executive Committee, GeneralManager and any subcommittees, as it deems appropriate;

7. to ensure that the Company's performance follows the business plans and budgets atall times;

8. to refrain from conducting any similar or competitive business, participating as partnerin an ordinary partnership or partner with unlimited liability in a limited partnershipor director in a private company or in any other firm, company or corporation operatingthe business similar to or in competition with the Company, regardless of whether forhis/her own benefit or for others' benefit. However, an exception is granted wherethe director provides notice to the shareholders' meeting in advance of his/her effectiveappointment as director of the Company; and


9. to notify the Company without delay of the event of likelihood that the director may havedirect or indirect interests as a result of (i) the Company's entry into any agreement; and(ii) his/her increased or decreased holding of shares or bonds in the Company orits subsidiary companies.

7.2.2 Audit CommitteeThe Company's Audit Committee comprises of:1. Mr. Manu Leopairote Audit Committee Chairman2. Dr. Virabongsa Ramangkura Audit Committee member3. Mr. Shiraz Erach Poonevala Audit Committee memberMrs.Supritha Pai Kasturi is the secretary to the Audit Committee.Power and duties of the Audit Committee1. to review the sufficiency, credibility and objectivity of the financial reporting of

the Company by coordinating with the external auditors and managementresponsible for preparing the quarterly and yearly financial reports. The AuditCommittee may suggest issues or matters to be included for review or auditedby the external auditors during its audit of the Company;

2. to review the adequacy and effectiveness of internal control systems andinternal audit functions by coordinating with the external auditors and internalauditors (if any);

3. to review compliance with the Securities and Exchange Acts, Regulations ofthe SET, and any other relevant laws;

4. to consider and advise on the appointment of the external auditor includingthe audit fee, taking into account the creditability of the external auditor, theadequacy of its resources, the firm's audit engagements, and the experience ofits supervisory and professional staff; as well as to have a meeting with theexternal auditor, once a year without the presence of the Executive directorsor any other member of the management team.

5. to review the connected transactions and ensure proper compliance with allthe SET regulations and also to ensure adequate disclosures or conflict-of-interestdisclosures;

6. to take care of any other matters assigned to it by the Board of Directors, suchas reviewing the Company's financial and risk management policies, reviewingcompliance with the Code of Corporate Conduct of the management, andreviewing with the company's management, all important reports which mustbe disclosed to the public according to the law (e.g. Management Discussionand Analysis (MD&A), etc.);

61

7. to report the activities of the Audit Committee in the company's annual report,which must be signed by the chairman of the Audit Committee, and to express insuch annual report the Audit Committee's opinion on (i) the accuracy and com-pleteness of the procedures for the preparation of the report and informationdisclosure, (ii) the sufficiency of the internal control system of the Company, (iii)opinion on the suitability of the external auditor and appointment for another term,(iv) the number of Audit committee meetings held in the previous year and theattendance of each member in such meetings, (v) opinion on the connectedtransactions and any transactions that may lead to conflict of interest (vi) thecompliance by the Company with rules and regulations of SET, SEC and otherapplicable laws, and report on any information that the shareholders and investorsshould be aware of under the scope of power of the duty that has been assignedby the Board of Director.

8. to report the performance of the Audit Committee to the Board of Directors atleast once every calendar quarter; and

9. to express its opinion on the performance, appointment, removal and determinationof remuneration of the internal auditor.

7.2.3 ManagementPTL's senior management during 2010-11 consisted of five persons as below:1. Mr. Rohit Kumar Vashistha Managing Director2. Mr. Vinod Sureka Chief Financial Officer3. Mr. Manav Singh Business Head - SARALAM division4. Mr. Ramanathan Kannan Head - Operations*5. Mr. Ashish Ghosh Head - Sales & Marketing* For part of the year - Until June;10

Power and duties of Managing Director1. to monitor and supervise the day-to-day business operations and management

of the Company.

2. to undertake or perform duties in line with the policy, plan and budget approvedby the board of directors and/or the Executive Committee (if any) of the Company.

3. to perform as the authorized person of the Company in administering thebusiness in line with the objective, regulations, policy, rules, stipulations, ordersand resolutions of the meeting of the Board and/or resolutions of the meetingof shareholders.

4. to appoint and manage the performance of the working committees to ensurebenefit and efficiency as well as transparency in management, and be authorized


to appoint and/or assign any person to specifically perform on his behalf. Suchdelegation of power and authority shall come under the purview of such certainauthorization letter and/or comply with the regulations, stipulations or orders is-sued by the board of directors and/or the Company.

5. to determine mission, objectives, framework and policy of the Company includingorders and supervision in overall for optimum benefit in administration.

6. to follow up and assess the Company's operational results on a regular basisto cope with both internal and external risks.

7. to consider and approve expenditure spending in the normal course of businessoperations, such as transacting with banks regarding deposit accounts orprocurement of raw materials for production

8. to consider the recruitment and employment of personnel as well as transfer,rotation across functional lines/departments/divisions, or termination of employmentof personnel, and determine rate of wages, remuneration, bonus and welfarepackage relating to personnel.

9. to issue orders, regulations, announcements and memorandum to ensure theoperations come out in line with the policy and for the benefit of the Company aswell as to maintain discipline in the organization.

10. to perform any other duties as occasionally assigned by the Board of Directors

Power to approve any transactions (i) which may cause a conflict of interest withthe Company or its subsidiary; or (ii) in which the interests of the ManagingDirector or other interested person may be in conflict with the Company or itssubsidiary, under the applicable rules and regulations of the SET, do not fall withinthe scope of the powers and authorities of the Managing Director to act at his/herown discretion or to designate any person to act on his/her behalf. Typically,these transactions need the consideration and approval of the Board of Directorsand/or the shareholders' meeting in accordance with the Articles of Association ofthe Company and subject to applicable laws.

7.2.4 Role of Company SecretaryThe Company has appointed Mrs. Supritha Pai Kasturi as the Company Secretary.She is a qualified Chartered Accountant from the Institute of Chartered Accountantsof India and has the requisite knowledge and experience to perform this function.She also performs the role of the Secretary to the Board of Directors and to theAudit Committee.

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Responsibilities of Company Secretary:● Arrange the Board of Directors' Meetings, Audit Committee Meetings and the

Shareholders' Meeting in accordance with the relevant laws and regulations.● Prepare the Agenda/ supporting documents for the above meetings and ensure

that the same is circulated to the concerned members, at least a week in advanceof the meeting date, to allow sufficient time to review the documents.

● Prepare the Minutes of all the above Meetings and monitor subsequentcompliance with the resolutions of those Meetings.

● Ensure that disclosures of information to regulatory agencies (SET/SEC and otherrelevant regulatory agencies) are made in accordance with the applicable lawsand regulations.

● Execute any additional duties assigned by the Board of Directors from time to time

7.2.5 Selection of members of the board of directors, independent directors and theaudit committeeThe Company has no Nomination Committee to select and nominate any persons to beappointed as directors of the Company. In this regard, the Board will undertake theselection process, taking into account the experience, expertise and competency ofthe prospective persons and the qualifications required as per the criteria prescribedin the Public Limited Companies Act B.E. 2535 and as announced by the SEC andrelevant agencies, as also the provisions of Articles of Association of the company.Nomination will be made at the shareholders' meeting and election made under theprocedures prescribed in the Company's regulations as below:

I) Selection of members of the Board of Directorsa) The Company is required to have a board of directors consisting of at

least 5 persons. The board of directors must elect one of their membersto be the Chairman and may elect another member to be a Vice-Chairmanand any other positions as they see fit. At least one-half of the directorsmust reside in Thailand.

A director need not be a shareholder of the company.

b) A meeting of shareholders must elect the directors in accordance with thefollowing procedures and rules:-a. Each shareholder has one vote for each share held;b. Each shareholder may exercise the votes in electing one or more

persons to be the directors but the votes are indivisible; andc. The person who obtains the highest votes will be elected as

a director in respective order according to the required numberof directors, but if two or more persons obtain equal votes, theChairman must exercise a casting vote.


c) At every general meeting of shareholders, one-third (1/3) of the directors,or if it is not a multiple of three, then number nearest to one-third (1/3) mustretire from office.

d) There must be a drawing by lots to determine the directors retiring on thefirst and second years following the registration of the company. In eachsubsequent year, the directors who occupy the position for the longestperiod must retire.

A retiring director is eligible for re-election.

II) Selection of members of the Audit Committee/Independent DirectorAudit Committee is composed of at least three independent directors with anoffice term of 2 years. The Company has a policy to select and nominate AuditCommittee / Independent director in compliance with the SEC Notification no.KorJor. 12/2543 regarding application for and approval of offering of newly issuedshares, with each of whom to have the following qualifications:a) Hold shares not exceeding 5% of the total shares with voting rights of the

Company, an affiliated company, a subsidiary company, an associatedcompany or a juristic person that may have conflict of interest,

b) Not be an employee or a staff member or an advisor who receives aregular salary or a person with controlling power of the Company, anaffiliated company, a subsidiary company, an associated company ora juristic person that may have conflict of interest,

c) Not be a person having blood relation or legal relation in the manner ofbeing any family member or spouse thereof of the executives, the majorshareholders, the persons with controlling power or any persons to benominated to the managerial positions or the persons with controllingpower of the Company or a subsidiary company.

d) Have no business relation with the Company, an affiliated company,a subsidiary company, an associated company or any juristic personthat may have conflict of interest in the manner that may hinder the useof individual's independent judgment, and have no other nature that willhinder the individual's provision of independent opinions relating to theCompany's operations.

In addition, at least one independent director appointed as an Audit Committeemember must have sufficient knowledge and experience in finance andaccounting areas so that he/she can review the reliability of the financial state-ments. Other qualifications must also be taken into account, comprising business

65

experience, expertise in the field related to the business and ethical qualifications,to ensure maximum benefits to the Company.

The appointment of Audit Committee members is subject to the same criteria andprocedures as those in the appointment of directors of the Board. The vacatingAudit Committee member upon completion of his/her office term of 2 years maybe re-appointed by the Board of Directors for another term. In the event that thereis a vacancy on the grounds other than the completion of office term, the Boardshall select and appoint the person who possesses the required qualifications tofill the vacancy to complete the number of the Audit Committee members asprescribed by the Board. The newly appointed Committee member shall be in theoffice only for the remaining period of the office term of the vacating member.

7.2.6 Remuneration for managementa. Monetary remunerationDirectorsBefore the transformation into a public company, PTL had five directors. These directorsdid not receive any meeting allowance from the Company. Since transformation into aPublic Company in 2004, the Company has 8 Directors on the board. Until FY 2007-08,the Directors had renounced their right to receive any remuneration. However, from FY2008-09, the independent directors are receiving remuneration as approved by theshareholders in the Annual General Meeting of the Company.

For the FY 2010-11, the actual remuneration paid to the Independent Directors is Baht3,000,000 as against the amount approved of Baht 3,000,0000. Details of the same areas under:

S.No Name of Director Amount Approved (Baht) Actual Paid (Baht)

1 Mr. Manu Leopairote Baht100,000 per month Baht 1,200,000

2 Dr. Virabongsa Ramangkura Baht 50,000 per month Baht 600,000

3 Mr. Praphad Phodhivorakhun Baht 50,000 per month Baht 600,000

4 Mr. Shiraz Erach Poonevala Baht 50,000 per month Baht 600,000

In addition to the above remuneration, meeting sitting fees of Baht 10,000 per meetingattended has been paid to the Audit Committee members, which is as per the amountproposed and approved in the Shareholder meeting in July 2010.

For the FY 2011-12, it is proposed to fix a remuneration of Baht 75,000 per month to allthe independent directors as mentioned below:1. Mr. Manu Leopairote2. Dr. Virabongsa Ramangkura3. Mr. Praphad Phodhivorakhun4. Mr. Shiraz Erach Poonevala


Mr.Manu Leopairote, in his capacity as the Chairman of the Board of Directors and theChairman of the Audit Committee would be entitled to an additional remuneration of Baht25,000 per month, for each role.

For the Audit Committee, each member would be entitled to a sitting fee of Baht 10,000per meeting attended.

The above remuneration package, to the Independent directors and Audit committeemembers, would be proposed to the Shareholder meeting for their consideration andapproval.

The remuneration details of the senior management, including 1 executive directorof PTL is as below :

Remuneration (In ù000 Baht)2006/07 2007/08 2008/09 2009-10 2010-11

(Apr-Mar) (Apr-Mar) (Apr-Mar) (Apr-Mar) (Apr-Mar)*

Number of executives 5 5 6 6 4

Salaries (In ù000û Baht) 7,890 9,085 9,389 9,753 7,611

Bonus and Others (In ù000û Baht) 4,614 9,245 8,199 10,325 10,292

Total 12,504 18,330 17,588 20,078 17,904

** Including remuneration of a senior management person who was in the company foronly part of the year. So the number of executives was 5 until part of the year and 4as on March 31st '11.

b. Other remunerationDirectors-None-

Executives-None-

7.2.7 PersonnelAs of March 31, 2011, PTL had a total workforce of 411 persons, 378 of whom arepersonnel at the plant in Rayong Province and 33 at the head office in Bangkok.The Company also has 28 expatriates, 9 of whom are at the head office in Bangkokand the remaining 19 in Rayong.

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

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○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Number of employees

DepartmentAs of As of As of As of As of

March March March March March

31,2007 31,2008 31,2009 31,2010 31, 2011

1. Executives 5 5 6 7 4

2. Production 141 140 137 162 161

3. Commercial, IT,Personnel & Admn. 44 50 47 35 37

4. Sales and Marketing 12 16 18 21 25

5. Chips plant 26 25 23 21 22

6. Metallizer 18 33 37 37 37

7. Extrusion Coating 0 19 38 53 46

8. Cast Polypropylene Project 0 0 2 51 56

9. Silicone Coating Project 23

Total 246 288 308 387 411

Employee (non-executive) remuneration (Bt. thousand)

Remuneration 2006/2007 2007/2008 2008/09 2009/10 2010/11

(Apr-Mar) (Apr-Mar) (Apr-Mar) (Apr-Mar) (Apr-Mar)

No. of employees 241 283 302 381 407

Salaries & Wages 55,309 61,180 71,072 78,272 101,857

Overtime pay 7,292 6,985 6,655 7,350 11,206

Bonus 10,810 18,473 16,233 15,408 27,941

Provident fund* 567 595 1,841 2,102 2,489

Others 29,794 35,925 42,303 47,183 55,705

Total 103,772 123,158 138.104 150,316 199,198

* The Company started contributing to the provident fund since September 2004. Thecontribution of the employee and employer is 4%

There has been no labor dispute for the past years.

HRD PolicyThe company realizes the importance of its staff as they are valuable assets and play amajor role in the success and growth of the company. Therefore it has a policy to developthe efficiency, knowledge and skills of its staff at all levels by having well organized trainingprograms on a periodic basis. Training programs are designed to improve various aspectsof work life like technical competence, team building, enhancement of leadership skills, timemanagement skills etc thereby improving the quality of the working life of the employees.Feedback of employees participating in such trainings is taken in order to help improvementof quality of seminars and trainings to be conducted in future.


8.1 Corporate governance8.1.1 Policy on Corporate governance

Polyplex realizes the significance of good corporate governance and makes every effortto implement the Corporate Governance principles laid down by the Stock Exchangeof Thailand. The company has firm belief in transparency, accountability and ethicalconduct in carrying out its operations. Accordingly, the Company has formulated a policywhich emphasizes regular disclosures to the public and the shareholders. In addition,the Company adopts strict internal controls and audits in recognition of their importance.It also has several risk management policies, keeping in mind a good relationship andbusiness ethic towards business partners, shareholders and all concerned parties. In theyear 2010, the Company has also been able to improve its Corporate GovernanceRating, as per the IOD assessment for Listed Companies in Thailand, from ùGoodû toùVery Goodû category.

8.1.2 Rights of shareholdersThe Company recognizes the importance of equal rights of all shareholders andconsiders all the shareholders as owners of the Company irrespective of the percentageof shares owned.

The Company has a policy to report to shareholders regularly on progress of operations,either directly or through the Stock Exchange of Thailand or through informationon its website after listing. Shareholders will be given fourteen days advance noticeof all shareholder meetings, including the meeting agenda and related information.The shareholders would be encouraged to participate in the general meetings andtheir views and comments would be noted and followed up. In accordance with thegood governance practice relating to equitable treatment of shareholders, the companyalso invites the shareholders to propose additional agenda for the Annual generalmeeting of the shareholders and gives sufficient time (about 30 days) to proposethe Agenda.

The shareholders also have the following rights which are exercised in the AnnualShareholding meetings:● Re-appointment of Directors retiring by rotation and approval of the Director

remuneration● Approval of Auditor appointment and remuneration● Approval of dividend payment

8. Good Corporate governance & Internal Control

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8.1.3 Rights of stakeholdersPTL has always provided equal importance to the requirements of all its stakeholders asunder:● Personnel : PTL considers all its personnel to be valuable assets, critical

to the success and growth of the organization. The Companyis committed to providing a quality oriented work environment,with special emphasis on safety, along with fair and equitableremuneration. Apart from basic salary, Performance linked Bonus,Provident Fund contribution and Social Security Contribution, theCompany also provides certain other benefits to its employeessuch as Overtime pay, Housing Allowance, Transport Allowance,Telephone allowance, Medical Insurance, Life Insurancecoverage etc.

● Business partners : It has always been the policy of PTL to develop long standingand growing relationships with all its business partners based onmutual benefit and guided by good business ethics. The companyvalues the long standing relationship with its business partners,whether it is the banks that support the trade finance andproject financing requirements of the Company, or the strongDistributors/Agent network across various parts of the globe, whichhelp in market development and ensure smooth continuity of thebusiness operations for the company.

● Competitors : PTL will always abide by the framework of fair competition andwould work towards market development and growth to themutual benefit of the industry.

● Creditors : To abide by the loan covenants and provide all information aboutthe progress of the Company to its creditors as may be requiredfor smooth business dealings.

● Customers : PTL is committed to creating customer satisfaction by ensuringconsistency in the quality of its products and offering valueproposition to its global customer base.

● Shareholders : PTL strives to conduct its business in a transparent and efficientmanner with a view to constantly strive to enhance shareholdervalue. New project investments will be evaluated prudently toensure good returns and increase value to the shareholders.

● Community/ : PTL realizes and cares for the safety of society, environment andSociety quality of life of people. It places priority on activities relating

to the community and the society and also by compliance ofapplicable laws and regulations relating to the same. During FY


2010-11, the company organized Tree plantations in Chantaburiprovince to support natureûs conservation and also extendedsupport to a Turtle Conservation project. The company alsoprovided donations to the flood victims of South of Thailandand towards the Rehabilitation fund for Japan Tsunami disaster.We organize Blood donation camps and encourage employeesto donate blood.

8.1.4 Shareholdersû meetingsThe Company has a policy to enable shareholders to attend meetings without undueeffort. It endeavors to organize the shareholdersû meeting with equitable treatment for allparticipants and in strict accordance with legal procedures, from meeting invitations,proxy form for those who are unable to attend the meeting, and distribution of meetingdocuments to inform all concerned of the meeting agendas. The meeting venue and timewill be convenient while the meeting session will allow adequate time for shareholdersto ask questions on business operations or voice their opinion.

8.1.5 Leadership and visionThe Board of Directors is the forum for review of plans, vision, strategies and keypolicies. Elaborate budgets have been formulated for all functional areas in theCompany and a system of Key Result Areas (KRAs) has also been implemented foreach department and individual as also at the corporate level to align interestsand priorities across the organization. The Board of Directors would play a leadingrole in regular review of the actual operations vis-à-vis budgets as well as other keyperformance indicators.

8.1.6 Conflict of interestThe policy is based on the principle that any decision to be made by personnel at alllevels in business operations must be in the best interest of the Company. It is the dutyof all personnel to avoid any transactions and/or dealings which could result in financiallosses to the Company and result in personal monetary benefit. The Audit Committee isentrusted to watch over and review the internal controls and audit function to ensuretheir efficiency and also ensure adequate disclosures to be made as per the SEC/SETguidelines.

8.1.7 Business ethicsPTL has a code of conduct for all personnel who emphasize observance of ethicalpractices, honesty and accountability. Responsibility towards all stakeholders andexternal agencies is encouraged in order to foster a good corporate culture and socialresponsibility.

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8.1.8 Check and balance by non-executive directorsThe Company has altogether eight directors as detailed below:

Status Executive Directors Non-Executive Directors Audit Committee

Shareholdersû

representative Directors 1 3 -

Independent Directors - 1 3

8.1.9 Integration or delegation of title and authorityThe Chairman of the Board of Directors is an independent director and is also theChairman of the Audit Committee. Independent directors constitute 50% of the Boardof Directors and thus composition of the Board would ensure fair and effectivemanagement monitoring. The Managing Director is the CEO in charge of day-to-dayoperations and has specified powers with certain key decisions requiring approval bythe Board of Directors.

8.1.10 Remuneration for directors and executivesThe remuneration of the Board of Directors and the Audit Committee is proposed to theShareholder meeting for their consideration and approval. The Managing Directorûsremuneration is fixed by the Board of Directors in discharge of duties as the CEO of theCompany. The remuneration of the management is open for review by the shareholderswho may set the appropriate policies and guidelines on this matter.

8.1.11 Board meetingsThe meetings of the Board of Directors are usually convened at least once every quarterto review the operations / quarterly financial results and other matters. There were fiveBoard meetings conducted during the FY 2010-2011.Attendance of directors is as follows:

Name Position Attendance

Mr. Manu Leopairote Board Chairman & Audit Committee Chairman 5/5

Dr. Virabongsa Ramangkura Director & Audit Committee member 5/5

Mr. Shiraz Erach Poonevala Director & Audit Committee member 5/5

Mr. Sanjiv Saraf Vice-Chairman of the Board 2/5

Mr. Rohit Kumar Vashistha Managing Director 5/5

Mr. Praphad Phodhivorakhun Director 5/5

Mr. Pranay Kothari Director 0/5

Mr. Ranjit Singh Director 0/5

8.1.12 Supporting committees or sub-committeesThe Board of Directors has recommended and shareholders have approved an AuditCommittee consisting of three independent directors. The Audit Committee membershave the requisite qualifications under the relevant SET rules & guidelines. The powers


and allocation of work have been clearly defined by the shareholders and includereview of internal control systems, review of financial reports, connected transaction ortransaction involving conflict of interest. The term of the Audit committee is 2 years andmay be renewed by the Board of Directors every 2 years.

8.1.13 Internal control and audit systemThe Board of Directors exercises control through setting of annual budgets andoperational objectives, periodical review of which is done from time to time. Meanwhile,the Audit Committee oversees the internal controls and audit in the Company andsuggests measures for improvement.

8.1.14 Board of Directorsû reportThe Board of Directors is responsible for the Companyûs financial statements. As a part ofthe annual report, the directors have commented on the financial results of the Company.

8.1.15 Relationship with investorsThe Company places significance on the timely disclosure of accurate information to itsshareholders and investors. It has been participating in the SET Opportunity day everyyear to disseminate information about the Company and its operations to investors andanalysts. The company also organized a factory visit for the shareholders, analysts andpotential investors in February 2011, through the SET. The Company also organized anAnalysts Meet in November 2010. Apart from this, the management also participates inInvestor Meets organized by various brokerage houses within the region. As regardsinvestor relations, the Company has a well-developed IR section in the company website.Investor queries can be sent to the IR website ([email protected])and will be responded to by the management of PTL. The Investors/ Analysts can alsoregister their e-mail IDûs and receive an IR alert message, when any information isupdated on the Companyûs website. Further information regarding the Company maybe obtained by contacting at tel. 0-2665-2706-8.

Measures to prevent use of internal information for executivesû personal benefitThe Company has a policy on supervision of usage of internal company information by itsdirectors and management for their own benefit. The directors and management who cometo possess internal company information are not permitted to buy or sell the securities ofthe Company for a specified period prior to its announcement of operating results.

8.2 Internal ControlsAt the 2/2011 board of directorsû meeting of PTL held on May 25, 2011 with two out of thethree audit committee members attending, the board assessed PTLûs internal control bymeans of making inquiries with its management. Based on the assessment of PTLûs internalcontrol system in five aspects, namely organization and environment, risk management, controlof the executivesû operation, information technology system & information communication

73

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and follow-up system, the board viewed that PTL has adequate internal control with regardto the making of transaction with its major shareholders, directors, executives, or personsconnected with the above mentioned persons.

The board considered that the Companyûs adequate and appropriate internal control andfollow-up of the operations would be able to safeguard its assets against any illegitimate useby the executives.

8.3 Connected Transactions8.3.1 A summary of the connected transactions between PTL and the connected parties

during the past three years is as follows -

Party havingNet Amount Paid to

conflict ofRelationship Description of Pricing policy PCL by PTL

interesttransaction (Bt. 000ûs)

2008-09 2009-10 2010-11

Polyplex PCL is the PCL made advance The price of the 6,461 3,467 1,221Corporation Companyûs major payments on behalf of the transactionLtd. (PCL) shareholder, Company for administrative between PCL

owning directly expenses, which were and the Companyand indirectly the mainly traveling expenses was a normal51% of the of employees, price in generalCompanyûs share accommodations for business practicecapital and the employeesû family, and was the pricetwo parties have educational fees for as actually paid bycommon directors. employeesû children, PCL in advance

insurance claims of for the Companyemployees, insurance without any extrapremium payments, project charge by PCL.related expenses etc. TheCompany has given theappropriate accountingtreatment to theseexpenses and/or collectedthese amounts from theemployees and paid themback to PCL.

Polyplex PCL is the PTL made payments on The price of the 185 185 131Corporation Companyûs major behalf of PCL, which were transactionLtd. (PCL) shareholder, mainly traveling and other between PCL and

owning directly expenses of PCL the Company wasand indirectly the employees and their a normal price in51% of the families. general businessCompanyûs share practice and wascapital and the the price astwo parties have actually paid bycommon directors. company in

advance for PCLwithout any extracharge.

* The outstanding amount payable by PTL to PCL as on 31 March 2011 was Baht NIL.


8.3.2 Necessity and reasonableness of the connected transactionThe connected transaction involved the advance payments made by PCL on behalf ofthe Company for administrative expenses. The payments were made for such expensesas transportation, accommodations for employeesû family, educational fees for employeesûchildren, insurance claims of employees, project related expenses etc. The Companyhas given the appropriate accounting treatment to these expenses and/or collected theseamounts from the employees and paid them back to PCL. The reimbursement ofadvances/expenses was to PCL was at the actual prices incurred without any extracharge by PCL.

The connected transaction also involved the advance payments made by the Companyon behalf of PCL for administrative expenses, which were later re-imbursed by PCL tothe Company.

8.3.3 Measures or procedures for approval of the connected transactionThe audit committee of PTL has examined the connected transaction described in thetable above and viewed that it is in accordance with the normal business practice.For such transactions in the future, the Company can undertake the transactions andinform the audit committee on a quarterly basis.

For any other future connected transactions, the Company will assign the concernedunits to gather the relevant information and provide it to the audit committee to beused as a basis for its consideration on those transactions as to whether theyare consistent with the normal business practice and the market price. The Companywould follow the regulations of the SEC and SET in this regard. The audit committeehas to consider and inform the board of directors for the approval. The directorswho have a conflict of interest may not partake in the giving of comments on thoseconnected transactions.

8.3.4 Policy for potential connected transactionsFor any connected transactions that may take place in the future, the Company has apolicy to set appropriate conditions on the said transactions based on the reasonsand necessity of the Company. The connected transactions performed over the pastperiod were merely advance payments, made for such expenses as transportation,accommodations for employeesû family, educational fees for employeesû children,insurance claims of employees etc. Moreover, there were no extra charges by the parentcompany regarding such cost and expenses as brand name and R & D, and so on.In performing any future connected transactions, PTL board of directors will comply withthe law governing securities and exchange and the regulations, notifications and ordersof the Stock Exchange of Thailand, as well as the regulations regarding disclosure of

75

information about connected transactions and acquisition or disposal of core assets ofcompanies or subsidiary companies according to the accounting standards defined bythe Institute of Certified Accountants and Auditors of Thailand.

Where the connected transaction involves any person who may have a conflict ofinterest, the Company will arrange for the audit committee to give opinion on thenecessity and appropriateness of that transaction. In case the audit committee hasno expertise in any such transaction, the Company will have an independent expertor its external auditor provide opinion on that transaction to be used as a basis ofdecision-making by the board of directors or the shareholders, as the case may be.The Company will disclose such connected transactions in the notes to the financialstatements duly audited by its external auditor.


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9. Financial Position and Operational performance

9.1 Financial statementsAuditor

Year Name of auditor CPA no. Auditing firm

2010/11 Mr.Narong Puntawong 3315 Ernst & Young

(April 1, 2010-Mar 31.2011)


(April 1, 2009-Mar 31.2010)


(Apr 1,2008-Mar 31,2009)


(Apr 1,2007- Mar 31,2008)

2006/2007 Mr.Pisit Chiwaruangroch 2803 KPMG Phoomchai Audit Ltd.

(Apr 1, 2006 - Mar 31, 2007)

2003-04 to 2005-06 Mr. Vichien Thamtrakul 3183 KPMG Phoomchai Audit Ltd.

(Apr 1, 2003 - Mar 31, 2006)

Auditorûs reportFor all the past years, until the year ended on March 31st 2011, the Auditors have givenan unqualified opinion that the financial statements were fairly presented and prepared inaccordance with generally accepted accounting principles.

The Company had set up subsidiaries, namely Polyplex (Singapore) Pte. Ltd. (PSPL) inJuly 2004, Polyplex Europa Polyester Film Sanayi Ve Ticaret Anonim Sirketi (PE) inSeptember 2004, Polyplex (Americas) Inc. in January 2006 and Polyplex Trading (Shenzhen)Co. Ltd in 2009. The financial statements of last 3 years, for both Consolidated andStandalone, latest being the year ended on 31st March 2011, have been given for thepurpose of comparison and for the appreciation of the growth in revenues and profitabilityover the years.

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○Polyplex

(Th

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100.00


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○

○Polyplex

(Th

ailand

) Pu

blic C

ompa

ny L

imite

dBa

lanc

e Sh

eet

Unit

: Bah

t 000

ûs

Unco

nsol

idat

edCo

nsol

idat

ed20

08/200

920

09/201

020

10/201

120

08/200

920

09/201

020

10/201

1Ap

ril - M

arch

April

-Mar

chAp

ril - M

arch

April

- M

arch

April

- M

arch

April

- M

arch

Amou

nt%

Amou

nt%

Amou

nt%

Amou

nt%

Amou

nt%

Amou

nt%

Liab

ilitie

s &

Shar

ehol

ders

û Equ

ity

Curre

nt L

iabiliti

es

Acco

unts p

ayab

le36

0,86

55.93

510,35

68.46

821,53

111

.25

540,59

06.09

854,97

59.64

1,29

0,56

410

.82

Divid

end

paya

ble

320,00

05.26

--

--

320,00

03.60

--

--

Long

-term

loan

s-du

e wi

thin o

ne y

ear

164,25

62.70

192,13

93.18

256,00

13.50

297,75

33.35

454,06

45.12

387,20

03.24

Shor

t-ter

m lo

ans

from fi

nanc

ial

--

50,000

0.83

--

104,09

41.17

52,266

0.59

194,48

41.63

institu

tions

Other

cur

rent li

abilit

ies

72,401

1.19

80,276

1.33

106,45

81.46

133,89

91.51

135,87

81.53

189,95

81.59

Tota

l cur

rent

liab

ilitie

s91

7,52

315

.07

832,77

113

.80

1,18

3,99

016

.21

1,39

6,33

615

.72

1,49

7,18

416

.89

2,06

2,20

617

.28

Non-

curre

nt L

iabiliti

es

Long

-term

loan

s-ne

t of a

mou

nt d

ue1,27

5,93

720

.96

1,23

1,40

420

.41

1,12

0,20

015

.34

2,88

6,03

032

.50

2,35

2,62

026

.53

1,50

4,73

312

.61

within o

ne y

ear

Other

non

-cur

rent li

abilit

ies

--

--

--

1,95

70.02

4,45

60.05

3,25

80.03

Tota

l Liabi

lities

2,19

3,46

036

.04

2,06

4,17

534

.21

2,30

4,19

131

.55

4,28

4,32

348

.24

3,85

4,26

043

.47

3,57

0,19

729

.92

Shar

ehol

ders

Equ

ity

Issu

ed &

Paid-

up S

hare

Cap

ital

Prefer

red

shar

es-

--

--

--

--

--

-

Ord

inar

y sh

ares

800,00

013

.14

800,00

013

.26

800,00

010

.95

800,00

09.01

800,00

09.02

800,00

06.70

Prem

ium o

n or

dina

ry s

hare

s1,37

0,46

022

.52

1,37

0,46

022

.71

1,37

0,46

018

.76

1,37

0,46

015

.43

1,37

0,46

015

.46

1,37

0,46

011

.48

Tran

slatio

n ad

justmen

t-

--

--

-(1

38,255

)(1

.56)

(388

,776

)(4

.38)

(316

,111

)(2

.65)

Retained

ear

ning

s (d

efici

ts)

1,72

2,77

428

.30

1,79

8,72

129

.81

2,82

9,48

938

.74

2,54

3,70

528

.64

3,21

1,09

136

.21

6,48

1,97

654

.32

Tota

l Sha

reho

lder

sû E

quity

3,89

3,23

463

.96

3,96

9,18

165

.79

4,99

9,94

968

.45

4,57

5,91

151

.53

4,99

2,77

556

.31

8,33

6,32

569

.86

Minor

ity In

tere

st-

--

--

-20

,316

0.23

19,709

0.22

26,380

0.22

Tota

l Liabi

lities

and

Shar

ehol

ders

û6,08

6,69

410

0.00

6,03

3,35

610

0.00

7,30

4,13

910

0.00

8,88

0,55

010

0.00

8,86

6,74

410

0.00

11,932

,901

100.00

Equi

ty

79

○

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○

○Polyplex

(Th

ailand

) Pu

blic C

ompa

ny L

imite

dStatem

ent o

f Inc

ome

and

Retained

Earning

sUn

it : B

aht 0

00ûs

Unco

nsol

idat

edCo

nsol

idat

ed20

08/200

920

09/201

020

10/201

120

08/200

920

09/201

020

10/201

1Ap

ril - M

arch

April

-Mar

chAp

ril - M

arch

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- M

arch

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arch

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- M

arch

Amou

nt%

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nt%

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nt%

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nt%

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nt%

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nt%

Reve

nues

Net s

ales

3,23

6,61

195

.98

3,17

4,65

695

.18

4,98

0,73

797

.38

6,85

9,73

897

.12

7,12

5,36

697

.61

11,183

,174

98.79

Other

rev

enue

s74

,881

2.22

85,376

2.56

58,745

1.15

74,922

1.06

111,32

31.53

106,58

60.94

Gain

on fo

reign

exch

ange

60,739

1.80

75,315

2.26

75,517

1.48

128,16

61.81

62,832

0.86

30,410

0.27

Tota

l Rev

enue

s3,37

2,23

010

0.00

3,33

5,34

710

0.00

5,11

5,00

010

0.00

7,06

2,82

510

0.00

7,29

9,52

010

0.00

11,320

,169

100.00

Cost

s an

d Ex

pens

es

Cost o

f sales

2,36

5,43

870

.14

2,54

6,42

876

.35

3,10

4,61

660

.70

5,05

8,95

371

.63

5,39

4,35

573

.90

6,50

2,51

757

.44

Sellin

g an

d ad

minist

rativ

e ex

pens

es30

4,44

09.03

278,70

98.36

311,02

66.08

686,23

69.72

685,41

09.39

755,46

16.67

Loss

of f

oreign

exc

hang

e-

--

--

--

--

--

-

Man

agem

ent B

enefit

expe

nses

19,988

0.59

23,189

0.70

21,024

0.41

37,884

0.54

49,084

0.67

48,531

0.43

Tota

l Exp

ense

s2,68

9,86

579

.77

2,84

8,32

685

.40

3,43

6,66

767

.19

5,78

3,07

381

.88

6,12

8,84

983

.96

7,30

6,51

064

.54

Prof

it (lo

ss) be

fore

inte

rest

exp

ense

s68

2,36

620

.23

487,02

114

.60

1,67

8,33

332

.81

1,27

9,75

218

.121,17

0,67

116

.04

4,01

3,65

935

.46

Intere

st e

xpen

ses

(68,19

4)(2

.02)

(39,07

4)(1

.17)

(35,56

5)(0

.70)

(219

,211

)(3

.10)

(114

,655

)(1

.57)

(92,72

8)(0

.82)

Inco

me

Tax

--

--

--

(13,86

3)(0

.20)

(12,17

7)(0

.17)

(27,88

2)(0

.25)

Net pr

ofit

(loss

) af

ter in

com

e ta

x61

4,17

218

.21

447,94

713

.43

1,64

2,76

732

.12

1,04

6,67

914

.82

1,04

3,83

914

.30

3,89

3,04

934

.39

Net l

oss

of m

inor

ity in

tere

st-

--

--

-(4

,713

)(0

.07)

(4,453

)(0

.06)

(10,16

4)(0

.09)

Net pr

ofit

(loss

)61

4,17

218

.21

447,94

713

.43

1,64

2,76

732

.12

1,04

1,96

614

.75

1,03

9,38

614

.24

3,88

2,88

534

.30

Earn

ings

(loss

es) pe

r sh

are

(Bah

t)0.77

-0.56

-2.05

-1.30

-1.30

-4.85

-


○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Polyplex (Thailand) Public Company LimitedCash Flow Statement

Unit : Baht 000ûs

Unconsolidated Consolidated

2008/2009 2009/2010 2010/2011 2008/2009 2009/2010 2010/2011

April-March April-March April-March April-March April-March April-March

Cash flow from operating activitiesNet profit (loss) 614,172 447,947 1,642,767 1,041,966 1,039,386 3,882,885Adjustment to reconcile net profit ofnet cash provided by operatingactivities

Depreciation and amortization 154,466 162,014 190,413 343,266 356,731 357,538Increase (decrease) allowance for (74) 667 (233) (74) 1,852 783

doubtful debtsAllowance for diminution in value 16,183 1,709 (17,289) 19,558 1,575 (17,289)

of inventories (reversal)Dividend income (2,525) (4,489) (9,858) - - -Interest Expense 66,837 37,309 33,934 196,994 104,658 76,002Income Tax expense - - - 13,863 12,177 27,882Gain on disposal of property, (534) (823) (402) 1,172 (668) (610)

plant and equipmentUnrealized losses (gains) on 21,192 (100,555) (99,795) 34,128 (101,239) (97,579)

foreign exchangeExchange loss on share deposit 6,026 - - - - -

paid in advanceExchange loss on the redemption - 29,561 37,407 - - -

of investment in subsidiaryGains on sales of current (2,191) (1,841) (472) (2,191) (1,841) (472)

investmentsNet loss of minority interest - - - 4,713 4,453 10,164

Profit (Loss) from operation before 873,552 571,500 1,776,472 1,653,394 1,417,084 4,239,304changes in operating assets andliabilities

Decrease (Increase) in operatingassetsAccounts receivable 284,286 11,938 (528,037) 104,591 152,713 (723,653)Balance due from/to a related

company - - - (52,241) (8,406) (161,170)Inventories (103,925) (99,879) (41,599) (212,666) (157,992) (598,525)Other current assets 6,285 4,717 (89,258) 6,774 (18,665) (105,941)Other non-current assets 277 (978) 3,994 188 (890) 3,997

Increase (Decrease) in operating liabilitiesAccounts payable (147,061) 132,242 156,367 (261,311) 296,808 281,323Other current liabilities 34,633 597 26,492 47,629 (4,683) 38,614Income tax paid - - - (9,516) (24,011) (14,624)Other non- current liabilities - - - 87 2,500 (1,199)

Cash flow provided from (used in) 948,047 620,135 1,304,431 1,276,929 1,654,457 2,958,128operating activities

81

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○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Polyplex (Thailand) Public Company LimitedCash Flow Statement

Unit : Baht 000ûs


2008/2009 2009/2010 2010/2011 2008/2009 2009/2010 2010/2011


Cash flow from Investing activitiesDecrease (increase) in current (346,509) 350,541 (164,475) (346,509) 350,541 (164,475)

investmentsDividend from subsidiary 2,525 4,489 9,858 - - -Increase in advance payment for (57,829) (7,528) (182,321) (57,829) (7,528) (411,349)

purchases of assetsIncrease in Investment in (261,950) 265,735 139,665 - - -

subsidiaryIncrease (decrease) in accounts (17,300) 22,120 161,359 (97,938) 22,120 161,359

payable for purchases of fixedassets

Purchases of property, plant and (74,545) (581,187) (676,237) (243,167) (617,742) (760,722)equipment

Increase in intangible assets - - - - (58) (731)Proceeds from sales of property, 1,019 873 411 4,308 1,125 1,718

plant and equipmentNet cash used in investing activities (754,588) 55,042 (711,739) (741,134) (251,543) (1,174,201)Cash flow from financing activities

Interest Paid (67,740) (44,004) (34,285) (204,347) (112,363) (74,766)Increase (Decrease) in short term (18,371) 50,000 (50,000) 26,629 (51,828) 142,218

loans from financial institutionsDividend Paid (320,000) (692,000) (612,000) (320,000) (692,000) (612,000)Dividend paid to minority - - - (1,119) (1,418) (278)

shareholdersIncrease/(decrease) in long-term 221,103 102,058 36,838 347,752 (146,756) (778,852)

loansCash provided from financing (185,009) (583,947) (659,447) (151,084) (1,004,365) (1,323,679)

activitiesCurrency Translation changes - - - (39,051) (119,668) 59,342

Increase in cash and cash 8,450 91,231 (66,755) 345,659 278,881 519,590equivalents

Cash and cash equivalents at the 9,117 17,566 108,797 86,878 432,538 711,418beginning of period (April 1)

Cash and Cash equivalents at 17,566 108,797 42,042 432,538 711,418 1,231,009the end of period (March 31)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○


Polyplex (Thailand) Public Company LimitedFinancial Statement


2008/2009 2009/2010 2010/2011 2008/2009 2009/2010 2010/2011


Liquidity Ratios

Current ratio (time) 1.52 1.45 1.68 2.29 2.11 2.65Quick ratio (time) 1.13 0.90 1.17 1.52 1.25 1.60Cash flow current ratio (time) 1.18 0.71 1.29 0.94 1.14 1.66Receivable current ratio (time) 4.01 4.83 5.46 4.94 5.70 7.30Avg. debt collection period (day) 89.78 74.57 65.99 72.84 63.20 49.31Inventory turnover period (time) 108.69 110.69 88.87 22.61 19.00 15.68Avg. selling period (day) 3.31 3.25 4.05 15.92 18.94 22.96Payable current ratio (time) 5.84 6.41 5.73 7.87 8.18 6.86Loan repayment period (day) 61.63 56.18 62.78 45.72 44.02 52.50Cash cycle (day) 31.47 21.64 7.25 43.04 38.12 19.77Profitability RatiosGross profit margin (%) 26.92% 19.79% 37.67% 26.25% 24.29% 41.85%Operating profit margin (%) 16.89% 10.28% 31.00% 15.70% 13.99% 34.67%Other profit margin (%) 2.22% 2.56% 1.15% 1.06% 1.53% 0.94%Cash to profit margin (%) 124.68% 108.47% 74.53% 84.46% 116.94% 69.25%Net profit margin (%) 18.21% 13.43% 32.12% 14.75% 14.24% 34.30%Return on equity (%) 15.72% 11.39% 36.63% 23.44% 21.72% 58.26%Efficiency RatiosReturn on assets (%) 10.43% 7.39% 24.63% 12.13% 11.71% 37.34%Return on fixed assets (%) 34.23% 25.23% 63.83% 24.10% 24.89% 73.13%Asset turnover (time) 0.57 0.55 0.77 0.82 0.82 1.09Financial Policy RatiosDebt to equity ratio (time) 0.56 0.52 0.46 0.94 0.77 0.43Interest coverage ratio (time) 12.27 16.61 52.54 7.38 13.28 47.03Commitment coverage ratio (time) 5.01 0.83 1.50 2.57 1.81 2.44

(cash basis )Pay out ratio (%) 39% 40% 40% 39% 40% 40%

83

9.2 Explanation and analysis of operational performance and financial status9.2.1 Operational performance

PTL, a subsidiary of PCL, was incorporated on March 26, 2002 to engage in the productionand distribution of PET film (Polyethylene Terephthalate Film or Polyester Film) mainlyfor export markets focusing on packaging, industrial and electrical segments. The Companycommenced operations from its first production line on April 2, 2003 and the secondproduction line on November 12 of the same year. The Companyûs factory is situated inSiam Eastern Industrial Park, Rayong on a land area of 20 rai 22 sq. wah which was laterexpanded by another land area of 8 rai 28.9 sq.wah for implementation of the captive PETresin project. Another plot of land with an area of 35 rai, 2 nang and 54.80 square wah wasbought opposite to the factory, where The Companyûs Extrusion Coating project and theCast Polypropylene Project have been set up. The Silicone Coating project is also beingset up on the same plot of land During the year, the Company invested in a new plot ofland, adjacent to the existing factory in Rayong, with an area of 35 rai, 2 Nang and 66.5square wah, for facilitating future expansion projects.

All our product lines in Thailand have the following certifications:● ISO 14001:2004 certification on Environment Management system● ISO 9001:2008 certification on Quality Management system● OHSAS 18001:2007 certification on Occupational Health and Safety Management

system● ISO 22000:2005 certification on Food Safety standards

All our product lines in Turkey have the following certifications:● ISO 14001:2004 certification on Environment Management system● ISO 9001:2009 certification on Quality Management system● OHSAS 18001:2007 certification on Occupational Health and Safety Management

system● BRC/IoP - certification on Global Standard For Packaging and Packaging

Materials (For Plain and Metallized Film lines)

Polyplex group aims to become one of the world market leaders in PET thin film bycontinuously expanding its market share through regular expansions in capacity.By venturing into the manufacture of related products such as BOPP film (In India) andCPP film (In Thailand), which are other Packaging substrates used by Converters,in addition to PET thin film, Polyplex is moving towards establishing itself as a Preferredpackaging substrate provider as against just a PET thin film supplier. Apart from this,in order to further diversify its product range, the group has regularly been expandinginto new value added products such as Silicone coated film (In India - 2007), Extrusioncoated films (In Thailand - 2008), increasing its Metallised film capacities in Turkeyand Thailand in May 2008 and the new Silicone Coated Film line, which is under


○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

implementation in Thailand. The Company is also venturing into Thick PET film and iscurrently in the process of setting up this project in Thailand.

Polyplex group has set out clear business strategies:1) Focus on product development and technical services to penetrate high growth

and high margin markets,2) Cost leadership3) Boosting delivery efficiency through focus on distributed manufacturing and logistics4) Diversifying the product portfolio to minimize the risk of cyclical impact of the

PET film industry, to increase stability of Earnings5) Customer satisfaction through supply of consistent quality products6) Judicious mix of On-shore, Off-shore and Near-shore strategy.

The polyester film industry witnessed a significant surge in the demand in secondhalf of calendar year 2010. Also there had been a shift by some of the major playersof the industry from flexible packaging sector to industrial and other higher value addedproducts. This created a demand-supply imbalance in the packaging sector whichresulted in a sharp increase in the selling prices, especially in the second half of thefinancial year. As the company mainly caters to the flexible packaging segment, it alsobenefitted from this surge and was able to increase its contributions significantly inthe current financial year.

The highlights of the yearûs performance are as follows:

TOTAL REVENUESConsolidated:Sales Revenue:The consolidated sales revenue has increased to Baht 11,183 million, (Baht 4,058million or 56.9% growth over previous year). Increase in revenues is mainly on accountof significant increase in selling prices of Polyester films, as compared with the previousyear, due to the favorable market situation. The new CPP plant in Thailand alsocontributed to the growth in the top line.

Table illustrating consolidated sales revenue from Exports and Domestic sales is as below:

2008-09 2009-10 2010-11Market

Bt. million % Bt. million % Bt. million %

Exports 4,496.09 65.54 4,975.55 69.83 7,660.45 68.50

Domestic sales 2,363.65 34.46 2,149.81 30.17 3,522.72 31.50

Total 6,859.74 100.00 7,125.36 100.00 11,183.17 100.00

Note: Sales made by the distribution company in the US/China has been consideredas Exports. Previous year figures have been regrouped accordingly.

85

The value additions [VA = Selling price - Raw Material Cost] during the year for PTL andPE are shown below. The value addition levels witnessed an exceptional surge in FY2010-11 and contributed to an increase of 274% in the Companyûs overall profitability.

FX Fluctuation gain and Other Income:There has been an exchange gain of Baht 30.4 million as compared with Baht62.8 million exchange gain in the previous year. The decrease is mainly due toexchange loss in the books of Companyûs subsidiary in Turkey on restatement ofUS Dollar denominated assets.

The other income has reduced to Baht 106.6 million from Baht 111.3 million in theprevious year, mainly due to reduction in the export incentive income due to reduction ofincentive rates in Thailand w.e.f 1st April 2010.


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Standalone:Sales Revenue:The Companyûs total sales revenue is mainly driven by Exports, with 75-80% of its totalsales revenue coming from exports.

Table illustrating the Companyûs sales revenue from export and domestic sales is below:

2008-09 2009-10 2010-11Market

Bt. million % Bt. million % Bt. million %

Exports 2,522.67 78.16 2,496.48 78.64 3,950.99 79.33

Domestic sales 713.94 21.84 678.17 21.36 1,029.75 20.67

Total 3,236.61 100.00 3,174.65 100.00 4,980.74 100.00

In the year 2010-11 (April 1- March 31, 2011), The Company achieved total salesrevenues of Baht 4,981 million, an increase of Baht 1,806 million or 56.9% over theprevious year. The increase is mainly due to increase in selling prices of polyester filmdue to favorable market situation, as explained above. The current year also includedsales of Cast polypropylene film which commenced commercial production in March2010. The impact of increase in sales volumes of film (Polyester film + Cast Polypropylene+ Thermal Laminated film), has been partially offset by lower volumes of Chips sales.

FX Fluctuation gain and Other Income:The Company has made an exchange gain of Baht 75 million, almost the same as in theprevious year.

The other income has been Baht 58.7 million, as against Baht 85.4 million in theprevious year. Some of the main items included in other income are miscellaneoussales, Export Incentive, Interest income, Dividend Income, Profit on sale of fixed assets,Insurance claims etc. The decrease in other income this year is mainly due to thereduction in export incentive income, subsequent to the reduction in incentive rates inThailand w.e.f 1st April 2010.The impact of reduction in incentive rates has been partlyoffset by significantly higher selling prices in current year.

TOTAL EXPENSESConsolidatedThe key elements of the Companyûs cost structure are raw materials, packing, electricity& fuel, depreciation, staff cost and selling & administrative expenses.

Cost of sales (COS) amounted to Baht 6,503 million as compared to Baht 5,394 millionof previous year, representing 89% of the total expenses, marginally higher than 88%of the previous year. Cost of sales includes mainly the raw material costs, packingcosts, utilities, depreciation on building and machinery, staff costs etc. A broad break upof COS is given below:

87

Description 2010-11 2009-10 2008-09

Raw materials and consumables used (incl.change in inventory) 78.2% 75.6% 74.3%

Depreciation ( in COS) 5.1% 6.1% 6.3%

Salaries, wages and other employee benefits (in COS) 5.7% 5.4% 6.1%

Utilities (Power/Natural Gas/ Chilled water etc) 7.2% 8.7% 10.4%

Others 3.8% 4.2% 2.9%

100.0% 100.0% 100.0%

The selling expenses amounted to Baht 546 million or 7.5% of total expenses ascompared with Baht 490 million or 8% in the previous year. It includes shipmentcosts for the exported products, inland transportation charges, inland insurance ondomestic sales, commission on sales, credit insurance charges and other sellingexpenses. The increase in selling expenses is mainly due to higher sale volumesthis year. The commissions on sales have also been higher due to the higher averagesales realization.

The administrative expenses amounted to Baht 209 million or 2.9% of total expensesas compared with Baht 195 million or 3.2% in the previous year.

Management benefit expenses of Baht 48.5 million in the current year is almost thesame as previous year.

Despite increase in long term loans due to additional loans borrowed for the CastPolypropylene project in Thailand, the finance charges have reduced from Baht 115million to Baht 93 million, mainly due to lower interest rates as well as repayments,including some prepayment of loans by the subsidiary in Turkey (about Euro 15 million)for better deployment of surplus funds generated during the year.

StandaloneCost of sales (COS) amounted to Baht 3,105 million, representing 90.3% of the totalexpenses, higher than Baht 2,546 million or 89.4% of the previous year. The mainreason for the higher COS is higher production volumes as well as higher average rawmaterial prices during the year.

A broad breakup of the COS is given below:

Description 2010-11 2009-10 2008-09

Raw materials and consumables (incl.change in all inventory) 78.3% 78.3% 74.8%

Depreciation ( in COS) 5.8% 6.0% 6.2%

Salaries, wages and other employee benefits (in COS) 6.8% 5.8% 6.3%

Utilities (Power/Natural Gas/ Chilled water etc) 7.9% 8.7% 8.8%

Others 1.2% 1.2% 3.9%

100.0% 100.0% 100.0%

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○


The selling expenses amounted to Baht 260 million or 7.6 % of total expenses ascompared with Baht 217 million or 7.6% in the previous year. The increase in sellingexpenses is mainly due to higher sales volumes and higher commissions due to higheraverage sales realization.

The administrative expenses amounted to Baht 51 million or 1.5% of total expenses,lower compared with Baht 62 million or 2.2% in the previous year.

Management benefit expenses of Baht 21 million in the current year are lower than Baht23 million of the previous year.

Despite higher long term debt borrowings, the finance charges have reduced from Baht39 million to Baht 35.5 million, due to lower interest rates.

Profit margins - Gross Profit, Operating Profit and Net profit ratiosGross profit margin on a consolidated basis has been 41.9% as compared to 24.3% ofprevious year. On a standalone basis, The Company had a gross profit margin of 37.7%in 2010-11, which is higher than 19.8% in the previous year, mainly due to significantlyhigher average sales realization, especially in the second half of the financial year.

On a consolidated basis, the operating profit margin in the current year has increased from14% to 34.7%. And on a standalone basis, it has increased from 10.3% to 31%, mainly duereasons of higher average sales realization during the year, as explained above.

Net profit margin on a consolidated basis has been 34.3%, significantly higher than14.2% of the previous year and on a standalone basis it has increased from 13.4%to 32.1%.

9.2.2 Financial statusTOTAL ASSETSAs at 31st March 2011, The Companyûs consolidated total assets were Baht 11,932.9million, higher by 34.6% as compared to Baht 8,867 million in the previous year.

On a Standalone basis, the total assets as at 31st March 2011 were Baht 7,304 million,higher by about 21.1% compared to Baht 6,033 million of previous year.

The main components of Total Assets are Current assets, Fixed assets, Investments andother non-current assets. A brief summary of the movement in the various componentsof total assets is given below:

Accounts receivableThe Companyûs consolidated net accounts receivable as of March 31, 2011 stood atBaht 1,896 million which is higher by Baht 729 million , as compared to Baht 1,167million as of March 31, 2010 or an increase of 62.4%. The increase in receivables is

89

mainly due to the significant increase in selling prices in current year, particularly in thesecond half of the financial year, due to the favorable market situation.

The Companyûs Standalone Net Accounts Receivables as of 31st March, 2011 wereBaht 1,181 million, as against Baht 645 million in the previous year, or an increase of83.3%. The increase in receivables is mainly due to the significant increase in sellingprices as explained above.

InventoriesOn a consolidated basis, the total inventories have gone up from 1,116 million to 1,732million, an increase of Baht 616 million or 55.2%. On a standalone basis, the increaseis from Baht 412 million to Baht 471 million or 14.3%. The increase in inventory levelsis mainly due to higher stock of finished goods in Polyplex Americas Inc to cater togrowing demand in the American region. There has been an increase in the finishedgoods and work in process stock at the subsidiary in Turkey. On a standalone basis, theincrease is mainly in raw material stock due to higher inventory of polyester chips andalso some increase in finished goods inventory.

Net Fixed AssetsConsolidated Net Fixed Assets (including capital work in progress -CWIP) haveincreased by Baht 361 million from Baht 5,620 million to Baht 5,981 million, due to thenet impact of the following:● Increase due to additions to fixed assets - Baht 761 million, mainly on account of

the Capital work in progress relating to the Silicone Coating Line, apart from othernormal CAPEX, including a new plot of land purchased by the Company, close tothe existing factory in Rayong.

● Loss on account of fixed assets disposed/written off during the year - Baht 1million (Gross book value, net of accumulated depreciation) Decrease on accountof Translation adjustment - Baht 42 million (net of translation impact on accumu-lated depreciation), mainly due to translation of subsidiary Net Fixed Assets,denominated in Euro, USD and RMB, into THB for the purpose of consolidation.

● Decrease on account of depreciation charged during the year - Baht 357 million

The Company (standalone) Net Fixed Assets have increased by Baht 486 million,from Baht 2,629 million to Baht 3,115 million, due to the net impact of thefollowing:

● Increase due to addition to fixed assets - Baht 676 million mainly on account offollowing:❍ Addition to Building/Machinery mainly relating to the Silicone Coating project

- Baht 571 million (including machinery-in-transit)


❍ Normal CAPEX in existing plants ( Machinery/ Office equipments/ MotorVehicles etc)( Baht 12 million)

❍ Purchase on land for future expansions, adjacent to existing factory inRayong - Baht 93 million

● Decrease on account of depreciation charged during the year - Baht 190 million

Investment in subsidiariesDuring the year, the Company redeemed USD 4.7 million of the Preference Sharesof Polyplex (Singapore) Pte Ltd (PSPL

Return on assetsOn a consolidated basis also, the return on assets has increased to 37.3% from11.7% in previous year, despite increase in average assets, mainly due to increase inprofitability during the current year.

On a Standalone basis, the Companyûs return on assets has increased to 24.6% from7.4% in the previous year, despite increase in average assets, mainly due to increase inprofitability during the current year.

9.2.3 LiquidityCash flowFor the year 2010-11, the Company and its subsidiaries generated net cash fromoperating activities amounting to Baht 2,958 million. Out of these, Baht 1,009 million(net of sales of fixed assets) was expended for purchase, including advances formachinery & equipment (mainly for the Silicone Coating project and Thin & Thick PETfilm line investments) and other fixed assets, Baht 75 million was paid as financecharges on the long term and short term borrowings and, Baht 164 million was investedin current investments, Baht 637 million net outflow was on account of loan movement(long term and short term bank borrowings). There was a outflow of Baht 612 million onaccount of dividend paid by the Company for 2009-10 and Interim dividend for 2010-11and Baht 0.3 million of dividend payout by PA to the minority shareholders. The balancethereof along with the translation adjustment of Baht 59 million and the opening balanceof Baht 711 million resulted in a net closing balance of Baht 1,231 million.

During the year 2010-11, the Company generated net cash from operating activities ofBaht 1,304 million, Redemption of Preference Share investment in Polyplex (Singapore)Pte Ltd - Baht 140 million, and dividend from the US subsidiary Baht 10 million.Of these, Baht 696 million was used for purchase of fixed assets & other assets(mainly for the Silicone Coating Project and Thick PET Film line project), Baht 164million was invested in current investments, Baht 34 million was paid as finance chargeson the Long/short term loans, Baht 13 million net outflow was on account of loan

91

movement (long term and short term bank borrowings). There was an outflowof Baht 612 million on account of dividend for 2009-10 and Interim dividend forFY 2010-11. The deficit thereof together with the opening balance of Baht109 millionresulted in a net closing balance of Baht42 million.

Liquidity ratioIn 2010-11, consolidated current ratio was 2.65 and quick ratio was 1.60. The Companyûs(standalone) current ratio and quick ratio were 1.68 and 1.17 respectively. Consolidatedaverage debt collection period during 2010-11was 49 days along with Account payablesperiod of 52 days and average selling period of 23 days, resulting in a cash cycle of 20days as against a cash cycle of 38 days of previous year. The average debt collectionperiod of The Company (standalone) during 2010-11 was 66 days along with Accountspayable period of 63 days and average selling period of 4 days resulting in cashcycle of 7 days as against a cash cycle of 22 days in previous year.

9.2.4 Sources of fundsSources of funds consist of long term and short term loans from financial institutions andshareholdersû equity.

TOTAL LIABILITIESCurrent LiabilitiesAs at 31st March, 2011, consolidated current liabilities stood at Baht 2,062 million, anincrease of Baht 565 million from Baht 1,497 million in the previous year, mainly due tothe following:● Increase in Trade payables by Baht 281 million, mainly due to higher prices of raw

materials and also higher procurement levels due to higher production volumes,including the new CPP line in Thailand.

● Increase in payables for fixed assets by Baht 155 million, mainly due to theSilicone Coating project related machinery/building payables.

● Increase in other liabilities by Baht 54 million (mainly provision for expenses andincrease in Income tax payable at the subsidiary in US)

● Net increase in short term borrowings - Baht 142 million, at the subsidiary in USdue to increase in working capital requirement

● The above increase is partly offset by decrease in current portion of long termloans by Baht 67 million due to prepayment of loans by the subsidiary in Turkey

As at 31st March, 2011, The Companyûs Standalone current liabilities stood at Baht1,184 million, an increase of Baht 351 million from Baht 833 million in the previousyear, mainly due to increase in payables for Fixed assets (Baht 155 Million), Trade


payables (Baht 156 Million), increase in current portion of loans (Baht 64 Million)and other current liabilities (Baht 26 Million), partly offset by reduction in Short termborrowings by Baht 50 million.

Term DebtsOn a consolidated basis, the term debt (net of current portion) has decreased byBaht 848 million from Baht 2,353 million to Baht 1,505 million. The decrease inconsolidated debt is mainly on account of loan repayments, including prepayment ofloans during the year by the subsidiary in Turkey (approx. Euro 15 Million) for betterdeployment of surplus funds, and also on account of exchange gain on USD/Euro loanrestatements. This is partially offset by additional borrowings at Thailand for the SiliconeCoating project.

The Companyûs term debt (net of current portion) has decreased from Baht 1,231 millionto Baht 1,120 million due to loan repayments as well as exchange gain on the Euro/USDloan restatements, partly offset by new loans borrowed for the Silicone Coating project.

Leveraging & interest coverage ratioThe net debt equity ratio (debt only - short term and long term, including currentportion, after netting off cash & cash equivalents and current investments) of 0.08 on aconsolidated basis and 0.23 for The Company standalone are quite comfortable.Debt equity ratio (for total debt, including current + non-current liabilities), is 0.43 ona consolidated basis and 0.46 for The Company standalone, which are also quitecomfortable.

The consolidated interest coverage ratio was 47 times as against 13.3 in previous year.Increase in the interest coverage ratio is mainly due to increase in EBITDA during thecurrent year, as well as due to lower interest costs.

The Companyûs standalone interest coverage ratio was 52.5 times as against 16.6 timesin previous year. Despite the additional borrowings, there is an increase in Interestcoverage ratio, due to increase in EBITDA during the current year as well as lowerinterest costs because of lower interest rates.

CommitmentsAs at 31 March 2011, company had the following commitments and contingent liabilities:(a) The Company had commitments totaling Baht 6.1 million under various service

agreements. These agreements terminate between May 2011and January 2013.(b) The Companyûs foreign exchange contracts outstanding at 31 March 2011 are

summarized below.

93

Bought Sold Contractual exchange rate

Foreign currency amount amount Bought Sold

(Million) (Million) (Baht per 1 foreign currency unit)

US dollar 2.70 37.82 Baht 30.6650 - 33.2380 Baht 30.0600 - 32.6654

per USD 1 per USD 1

Swiss franc 2.21 Baht 29.5100 - 30.7096 -

per CHF 1

Swiss franc 0.49 - CHF 1.0113 per USD 1 -

Euro 0.84 3.79 Baht 39.4520 - 42.9400 Baht 39.9650 - 42.9400

per EUR 1 per EUR 1

Euro 0.05 - USD 1.3089 per EUR 1 -

Japanese yen - 70.33 Baht 0.3686 - 0.3763

per JPY 1

The Companyûs subsidiary in Turkey had the following forward exchange contractsoutstanding at 31st March, 2011:

Bought Amt Contractual Exchange RateYTL Buy 1,200,000 1.5942-1.628 per USD

(c) As at 31 March 2011, The Company and its subsidiaries had capital commitmentsof approximately Baht 1,184 million relating to the construction of buildingand acquisition of machinery and equipment for the upcoming projects. For theCompany Standalone, the capital commitments amounted to Baht 547.3 million.

(d) As at 31 March 2011, the Company is committed for rentals (under OperatingLease agreements) as follows:

Thousand BahtPayable within:1 years 1,0042 to 5 years 643

(e) The Company has given short term guarantees worth USD 20.0 million againstworking capital facilities of its subsidiaries. The Company has also given aguarantee of EUR 6.7 million for the long term loans taken by the Turkeysubsidiary.

Apart from above, as at 31 March 2011 there were outstanding bank guaranteesof approximately Baht 43.8 million and EUR 9.9 million issued by the banks onbehalf of the Company and its subsidiaries in respect of certain performancebonds as required in the normal course of business.


Shareholdersû equityThe Companyûs shareholdersû equity on a consolidated basis rose from Baht 4,993million to Baht 8,336 million, representing a growth rate of 67% during the year, whichis after accounting for dividend payment of Baht 612 million by the Company (140 millionrelating to FY 2009-10 and Baht 472 million of Interim dividend for FY 2010-11).On a standalone basis, the increase in shareholder equity is about 26% or Baht 1,031million from Baht 3,969 million to Baht 5,000 million mainly due to profits of the year ofBaht 1,643 million, which is partially offset by dividend payout of Baht 612 duringthe year.

Return on equityOn a consolidated basis, the Return on equity has increased from 21.72% to 58.26%,due to the significant increase in profitability. The ROE of the Company Standalone for2010-11 has also increased to 36.6% from 11.4% in 2009-10 mainly due to increase inprofitability for the year.

The Company has a policy to pay dividend at 40% of consolidated net profits. For theyear 2010-11, the Companyûs board has proposed a dividend of Baht 1.94 per share, outof which, Baht 0.59 per share has already been paid in November 2010 as Interimdividend and the balance of Baht 1.35 per share is payable in August 2011, subject tothe approval of shareholders in the Annual General meeting in July 2011.

9.3 Main factors which may affect the future operational performance and financialpositionThe FY 2010-11 was an exceptional year for the industry. However, market correction hasstarted happening, with new capacity additions coming on board and correcting the demandsupply imbalance witnessed last year. As such, the coming year would be a balanced year,with selling prices as well as the margins gradually declining to normal levels, as seen in thehistoric past (excluding last year).

The key challenges for the company in the coming year would be the following:- Raw material price volatility and any significant upward movement in prices, which the

company might not be able pass on completely to the end customers- Successful start up of the Silicone Coating project in Thailand.- Successful implementation of the Thick PET film line in Thailand.- Impact of FX fluctuations on profits of the company. The company is exposed to 2 types

of risks, one on the operational profits as well as the restatement of the assets/ liabilitiesof the company on a standalone basis and secondly, on the conversion of the subsidiariesûP&L accounts, which are denominated in USD, Euro and RMB, into THB currency forthe purpose of consolidation.

95

However, The Company is confident of retaining its competitive edge due to various reasons:1. Benefit from its various projects, the past projects and the ones under implementation

as under:a. PTL and PE have both derived significant benefits from the captive PET resin

production to serve its raw material demand on costs, quality and security ofavailability. The main advantages of a captive resin plant are lower cost ofproduction because of efficiencies in raw material sourcing as also a lowerconversion cost besides ensuring timely availability of raw material for the filmplants. Easy availability of PTA and MEG would reduce the supply risk althoughcost of the same still remains a matter of concern for any PET film manufactureras it has a direct impact on the margins of every manufacturer. Captive productionof resin would also allow the company to develop new specialty film products.

b. Metallizer plants in Thailand and Turkey have helped improve the product mix. Withthe start up of the second metallizer plants in Turkey and Thailand in May 2008, thecompanyûs capacity to produce value added films and sell additional volumes to itsexisting as well as new customers has increased significantly. This has helped theCompany to increase the share of specialty films in the overall sales portfolio.

c. The Extrusion coating plant in Thailand, which commenced operations in Aprilû08,has further helped the company to reduce their exposure to commodity grades offilm and increase the proportion of value added films and other specialty grades of film.

d. The CPP line which started in Thailand in March 2010 will help the company broadbase its product offerings to the converters and move towards becoming a completepackaging solution provider for its customers, rather than just a PET film supplier.

e. The Silicone Coating project under implementation will further diversify the productportfolio of the company and add a highly value added product in its portfolio.

f. The Thick PET film line, under implementation in Thailand will also help furtherdiversify the product portfolio and mitigate the risk associated with the cyclicalnature of the Thin PET film industry, as Thick PET film is a relatively more stableindustry within lower competition.

2. Polyplex has been deriving benefits from the larger size and distributed manufacturingoperations across 3 locations whereby it has qualified as a preferred global supplier withmany multinational and large customers with global operations.

3. Polyplex has been able to establish itself as a reliable supplier of consistent qualityproducts

4. Polyplex had also invested significantly in distribution, through the acquisition of acompany in USA (Polyplex (Americas) Inc.(PA) and the investment in Polyplex (Trading)Shenzhen Co Ltd, China. The Investment in PA has lead to a better market penetration


and improved customer service for North American markets and it is evident from theincreasing sales volumes of PA. The Company is in the process of implementing a ThinPET film line project in the USA. With its extensive market reach in the North Americanregion, the Company remains confident that this decision, backed by its near shoringstrategy will enable it to service its customers in a more efficient manner.

9.4 Remuneration for auditor/s1. Audit fee

The Company paid audit fee as below:- A total of Baht - paid to the auditor/s for the past fiscal year; and- A total of Baht 2,175,000.00 paid to the accounting firm the auditor/s work

for, or the person or business related to the auditor/s and the accounting firm forthe past fiscal year.

2. Non-audit feeThe Company made payment for other services, i.e. examination of compliance withconditions of promotion certificates, and legal and tax advisory services, including BOIand tax audit services, as follows:- A total of Baht - paid to the auditor/s for the past fiscal year and Baht

- payable in the future for the service not yet fully done for the pastfiscal year; and

- A total of Baht 545,000 paid to the accounting firm the auditor/s work for, orthe person or business related to the auditor/s and the accounting firm forthe past fiscal year, and Baht 990,000 payable in the future for the servicenot yet fully done for the past fiscal year.

97

To the Shareholders of Polyplex (Thailand) Public Company Limited

I have audited the accompanying consolidated balance sheets of Polyplex (Thailand) Public CompanyLimited and its subsidiaries as at 31 March 2011 and 2010, the related consolidated statements ofincome, changes in shareholdersû equity and cash flows for the years then ended; and the separatefinancial statements of Polyplex (Thailand) Public Company Limited for the same periods. Thesefinancial statements are the responsibility of the Companyûs management as to their correctness andthe completeness of the presentation. My responsibility is to express an opinion on these financialstatements based on my audits. The consolidated financial statements as at 31 March 2011 and 2010and for the years then ended include the financial statements of certain subsidiaries which wereaudited by other auditors, whose reports have been furnished to me. My opinion on the consolidatedfinancial statements, insofar as they relate to the amounts included for these subsidiaries, is basedsolely on the reports of those other auditors. These consolidated financial statements reflect totalassets of those subsidiaries as at 31 March 2011 and 2010 of approximately Baht 1,156.1 million andBaht 654.6 million, respectively, total revenues for the years ended 31 March 2011 and 2010 ofapproximately Baht 2,541.1 million and Baht 1,339.9 million, respectively, and net income for theyears ended 31 March 2011 and 2010 of approximately Baht 67.1 million and Baht 32.5 million,respectively.

I conducted my audits in accordance with generally accepted auditing standards. Those standardsrequire that I plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An audit also includes assessingthe accounting principles used and significant estimates made by management, as well as evaluatingthe overall financial statement presentation.I believe that my audits and the reports of the otherauditors referred to in the previous paragraph providea reasonable basis for my opinion.

In my opinion, based on my audits and the reports of the other auditors, the financial statementsreferred to above present fairly, in all material respects, the financial position of Polyplex (Thailand)Public Company Limited and its subsidiaries and of Polyplex (Thailand) Public Company Limited as at31 March 2011 and 2010, the results of their operations and cash flows for the years then ended inaccordance with generally accepted accounting principles.

Narong Puntawong

Certified Public Accountant (Thailand) No. 3315

Ernst & Young Office LimitedBangkok: 13 May 2011

Report of Independent Auditor


Polyplex (Thailand) Public Company Limited and its subsidiaries

As at 31 March 2011 and 2010

Balance sheets

The accompanying notes are an integral part of the financial statements.

(Unit: Baht)

Consolidated Separate

financial statements financial statements

Note 2011 2010 2011 2010

Assets

Current assets

Cash and cash equivalents 7 1,231,008,609 711,418,120 42,041,807 108,797,109

Current investments 164,946,931 - 164,946,931 -

Trade accounts receivable

Unrelated parties - net 8 1,896,159,409 1,167,444,375 802,536,053 491,054,364

Related parties 6, 8 - - 378,803,344 153,527,362

Trade accounts receivable - net 1,896,159,409 1,167,444,375 1,181,339,397 644,581,726

Amounts due from related party 6 221,816,318 60,646,262 - -

Inventories - net 9 1,732,304,430 1,116,293,084 470,776,718 411,888,405

Other current assets

Advance payments for goods 105,704,434 15,773,704 75,172,272 788,237

Input tax refundable 24,098,204 14,151,862 24,098,204 14,151,862

Export incentive receivables 11,198,766 16,326,108 11,198,766 16,326,108

Others 71,331,382 58,747,910 22,282,935 11,610,279

Total current assets 5,458,568,483 3,160,801,425 1,991,857,030 1,208,143,726

Non-current assets

Investments in subsidiaries 10 - - 1,936,414,851 2,113,486,334

Property, plant and equipment - net 11 5,979,205,759 5,618,255,146 3,115,042,451 2,629,227,648

Intangible assets - net 12 1,353,643 1,266,100 - -

Other non-current assets

Goodwill 3,874,351 3,874,351 - -

Advance payment for purchases of assets 480,027,593 68,678,316 250,998,855 68,678,315

Others 9,871,557 13,868,899 9,826,112 13,820,340

Total non-current assets 6,474,332,903 5,705,942,812 5,312,282,269 4,825,212,637

Total assets 11,932,901,386 8,866,744,237 7,304,139,299 6,033,356,363

99

(Unit: Baht)



Note 2011 2010 2011 2010

Liabilities and shareholdersû equity

Current liabilities

Short-term loans from financial institutions 13 194,483,944 52,266,128 - 50,000,000

Trade accounts payable 1,088,573,615 807,961,367 619,540,457 463,342,128

Current portion of long-term loans from

financial institutions 14 387,200,147 454,064,187 256,001,425 192,138,605

Other current liabilities

Accounts payable for purchases of fixed assets 201,990,244 47,014,110 201,990,244 47,014,110

Corporate income tax payable 25,767,349 11,578,325 - -

Others 164,190,477 124,300,166 106,458,108 80,276,345

Total current liabilities 2,062,205,776 1,497,184,283 1,183,990,234 832,771,188

Non-current liabilities

Long-term loans from financial institutions - net

of current portion 14 1,504,733,243 2,352,619,686 1,120,200,422 1,231,403,765

Other non-current liabilities 3,257,658 4,456,461 - -

Total non-current liabilities 1,507,990,901 2,357,076,147 1,120,200,422 1,231,403,765

Total liabilities 3,570,196,677 3,854,260,430 2,304,190,656 2,064,174,953



Balance sheets (continued)





Balance sheets (continued)


(Unit: Baht)



Note 2011 2010 2011 2010

Shareholdersû equity

Share capital

Registered

960,000,000 ordinary shares of Baht 1 each 960,000,000 960,000,000 960,000,000 960,000,000

Issued and fully paid up

800,000,000 ordinary shares of Baht 1 each 800,000,000 800,000,000 800,000,000 800,000,000

Share premium 1,370,460,000 1,370,460,000 1,370,460,000 1,370,460,000

Translation adjustment (316,111,008) (388,776,230) - -

Retained earnings

Appropriated - statutory reserve 15 96,000,000 96,000,000 96,000,000 96,000,000

Unappropriated 6,385,976,165 3,115,091,280 2,733,488,643 1,702,721,410

Equity attributable to

the Companyûs shareholders 8,336,325,157 4,992,775,050 4,999,948,643 3,969,181,410

Minority interest - equity attributable

to minority shareholders of subsidiaries 26,379,552 19,708,757 - -

Total shareholdersû equity 8,362,704,709 5,012,483,807 4,999,948,643 3,969,181,410

Total liabilities and shareholdersû equity 11,932,901,386 8,866,744,237 7,304,139,299 6,033,356,363

101

(Unit: Baht)



Note 2011 2010 2011 2010

Revenues

Sales 18 11,183,173,844 7,125,365,610 4,980,737,003 3,174,656,004

Other income

Exchange gain 30,409,607 62,831,535 75,517,202 75,315,001

Interest income 14,943,825 11,216,392 453,903 271,736

Others 91,642,001 100,106,772 58,291,545 85,103,828

Total revenues 11,320,169,277 7,299,520,309 5,114,999,653 3,335,346,569

Expenses

Cost of sales 6,502,517,451 5,394,354,846 3,104,616,406 2,546,427,700

Selling expenses 546,066,964 490,347,969 260,250,217 217,198,477

Administrative expenses 209,394,337 195,062,090 50,775,955 61,510,708

Management benefit expenses 48,531,483 49,084,022 21,024,445 23,188,665

Total expenses 7,306,510,235 6,128,848,927 3,436,667,023 2,848,325,550

Income before finance cost

and corporate income tax 4,013,659,042 1,170,671,382 1,678,332,630 487,021,019

Finance cost (92,727,935) (114,655,012) (35,565,397) (39,073,770)

Income before corporate income tax 3,920,931,107 1,056,016,370 1,642,767,233 447,947,249

Corporate income tax 17 (27,882,009) (12,177,063) - -

Net income for the year 3,893,049,098 1,043,839,307 1,642,767,233 447,947,249

Net income attributable to:

Equity holders of the parent 3,882,884,885 1,039,385,809 1,642,767,233 447,947,249

Minority interests of the subsidiaries 10,164,213 4,453,498

3,893,049,098 1,043,839,307

Basic earnings per share 19

Net income attributable to equity holders of the parent 4.85 1.30 2.05 0.56


For the years ended 31 March 2011 and 2010

Income statements



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7,94

7,24

9

Divid

ends

(Note

20)

--

-(3

72,000

,000

)(3

72,000

,000

)

Balanc

e as

at 3

1 Mar

ch 2

010

800,00

0,00

01,37

0,46

0,00

096

,000

,000

1,70

2,72

1,41

03,96

9,18

1,41

0

Balanc

e as

at 3

1 Mar

ch 2

010

800,00

0,00

01,37

0,46

0,00

096

,000

,000

1,70

2,72

1,41

03,96

9,18

1,41

0

Net i

ncom

e for t

he y

ear

--

-1,64

2,76

7,23

31,64

2,76

7,23

3

Divid

ends

(Note

20)

--

-(6

12,000

,000

)(6

12,000

,000

)

Balanc

e as

at 3

1 Mar

ch 2

011

800,00

0,00

01,37

0,46

0,00

096

,000

,000

2,73

3,48

8,64

34,99

9,94

8,64

3




Cash flow statements


(Unit: Baht)



2011 2010 2011 2010

Cash flows from operating activities

Net income before tax 3,920,931,107 1,056,016,370 1,642,767,233 447,947,249

Adjustments to reconcile net income before tax to

net cash provided by (paid from) operating activities:

Depreciation and amortisation 357,538,292 356,731,313 190,412,784 162,013,643

Doubtful debts (doubtful debts recovery) 782,822 1,852,015 (232,677) 667,458

Allowance for diminution in value of inventories (reversal) (17,289,445) 1,574,526 (17,289,445) 1,709,422

Unrealised gain on exchange rate (97,579,224) (101,239,143) (99,794,864) (100,555,003)

Exchange loss on the redemption of investment

in subsidiary - - 37,406,615 29,561,015

Gains on sales of current investments (471,844) (1,840,604) (471,844) (1,840,604)

Gain on sales of property, plant and equipment (609,888) (668,000) (401,758) (823,224)

Dividend income - - (9,858,356) (4,488,754)

Interest expenses 76,002,321 104,657,602 33,933,956 37,308,577

Income from operating activities before changes in

operating assets and liabilities 4,239,304,141 1,417,084,079 1,776,471,644 571,499,779

Operating assets (increase) decrease

Trade accounts receivable (723,652,740) 152,712,912 (528,037,054) 11,937,668

Amounts due from related party (161,170,056) (8,405,694) - -

Inventories (598,524,624) (157,991,976) (41,598,868) (99,879,304)

Export incentive receivables 5,127,342 (1,726,720) 5,127,342 (1,726,720)

Other current assets (111,068,578) (16,937,933) (94,385,636) 6,443,441

Other non-current assets 3,997,342 (890,416) 3,994,228 (978,278)

Operating liabilities increase (decrease)

Trade accounts payable 281,323,022 296,808,185 156,367,007 132,241,998

Other current liabilities 38,614,107 (4,683,491) 26,492,324 596,897

Other non-current liabilities (1,198,803) 2,499,722 - -

Cash from operating activities 2,972,751,153 1,678,468,668 1,304,430,987 620,135,481

Cash paid for corporate income tax (14,623,514) (24,011,458) - -

Net cash from operating activities 2,958,127,639 1,654,457,210 1,304,430,987 620,135,481

105



Cash flow statements (continued)


(Unit: Baht)



2011 2010 2011 2010

Cash flows from investing activities

Decrease (increase) in current investments (164,475,087) 350,540,604 (164,475,087) 350,540,604

Decrease in investments in subsidiaries - - 139,664,868 265,734,840

Dividend received from subsidiary - - 9,858,356 4,488,754

Increase in advance payment for purchases of assets (411,349,277) (7,528,062) (182,320,540) (7,528,061)

Increase in accounts payable for purchases of fixed assets 161,359,029 22,119,923 161,359,029 22,119,923

Proceeds from sales of property, plant and equipment 1,718,289 1,124,659 411,037 873,117

Purchases of property, plant and equipment (760,722,249) (617,741,918) (676,236,866) (581,187,108)

Increase in intangible assets (731,215) (58,429) - -

Net cash from (used in) investing activities (1,174,200,510) (251,543,223) (711,739,203) 55,042,069

Cash flows from financing activities

Increase (decrease) in short-term loans

from financial institutions 142,217,816 (51,827,836) (50,000,000) 50,000,000

Increase (decrease) in long-term loans from

financial institutions (778,852,400) (146,755,861) 36,837,506 102,057,541

Cash paid for interest expenses (74,766,192) (112,363,486) (34,284,592) (44,004,399)

Dividend payment (612,000,000) (692,000,000) (612,000,000) (692,000,000)

Dividend paid to minority shareholders (278,092) (1,418,015) - -

Net cash used in financing activities (1,323,678,868) (1,004,365,198) (659,447,086) (583,946,858)

Increase (decrease) in translation adjustment 59,342,228 (119,668,192) - -

Net increase (decrease) in cash and cash equivalents 519,590,489 278,880,597 (66,755,302) 91,230,692

Cash and cash equivalents at beginning of year 711,418,120 432,537,523 108,797,109 17,566,417

Cash and cash equivalents at end of year 1,231,008,609 711,418,120 42,041,807 108,797,109




1. General informationPolyplex (Thailand) Public Company Limited (çThe Companyé) is a public company incorporated

anddomiciled in Thailand. Its parent company is Polyplex Corporation Limited, which was

incorporated in India. The Company is principally engaged in the manufacture and distribution

of polyester films, metallized films, extrusion coated films, cast polypropylene films and PET

resins. The registered addresses of the Companyûs head office and factories are as follows:

Head office: 75/26 Ocean Tower II, 18th Floor, Soi Sukhumvit 19, Sukhumvit Road, Kwaeng

North Klongtoey, Khet Wattana, Bangkok.

Factory 1: Siam Eastern Industrial Park, 60/24 Moo 3, Tambol Mabyangporn, Amphur Pluakdaeng,

Rayong.

Factory 2: Siam Eastern Industrial Park, 60/91 Moo 3, Tambol Mabyangporn, Amphur Pluakdaeng,

Rayong.

2. Basis of preparation2.1 The financial statements have been prepared in accordance with accounting standards

enunciated under the Accounting Professions Act B.E. 2547 and their presentation has

been made incompliance with the stipulations of the Notification of the Department of

Business Development dated 30 January 2009, issued under the Accounting Act B.E.

2543.

The financial statements in Thai language are the official statutory financial statements

of the Company. The financial statements in English language have been translated

from the Thai language financial statements.

The financial statements have been prepared on a historical cost basis except where

otherwise disclosed in the accounting policies.

2.2 Basis of consolidation

a) The consolidated financial statements include the financial statements of the

Company (çthe Companyé) and the following subsidiary companies (çthe

subsidiariesé):

Notes to consolidated financial statements

107

Revenues as aAssets as a percentage to

percentage to the consolidatedthe consolidated total revenues

Nature of Country of Percentage of total assets as at for the yearCompanyûs name business incorporation shareholding 31 March ended 31 March

2011 2010 2011 2010 2011 2010Percent Percent Percent Percent Percent Percent

Polyplex (Americas) Inc. Distribution of United States 80.24 80.24 9.42 7.20 22.07 18.19

plastic film of America

Polyplex (Singapore) Investment Singapore 100.00 100.00 0.13 0.04 0.04 0.17

Pte. Ltd. holding company

Polyplex Europa Polyester Manufacture and Turkey 100.00 100.00 48.47 50.10 39.48 42.76

Film Sanayi Ve Ticaret distribution of

Anonim Sirketi (100% polyester film and

owned by Polyplex chips

(Singapore) Pte. Ltd.)

Polyplex Trading Distribution of The Peopleûs 100.00 100.00 0.14 0.15 0.34 -

(Shenzhen) Co., Ltd. plastic film Republic of China

(100% owned by Polyplex

(Singapore) Pte. Ltd.)

b) Subsidiaries are fully consolidated as from the date of acquisition, being the date

on which the Company obtains control, and continue to be consolidated until the

date when such control ceases.

c) The financial statements of the subsidiaries are prepared using the same

significant accounting policies as the Company.

d) The assets and liabilities in the financial statements of overseas subsidiary

companies are translated to Baht using the exchange rate prevailing on the

balance sheet date, and revenues and expenses translated using monthly

average exchange rates. The resulting differences are shown under the caption

of çTranslation adjustmenté in shareholdersû equity.

e) Significant balances and transactions between the Company and its subsidiary

companies have been eliminated from the consolidated financial statements.

f) Minority interests represent the portion of net income or loss and net assets of the

subsidiaries that are not held by the Company and are presented separately in

the consolidated income statement and within equity in the consolidated balance

sheet.

2.3 The separate financial statements, which present investments in subsidiaries under the

cost method, have been prepared solely for the benefit of the public.

3. Adoption of new accounting standardsDuring the current year, the Federation of Accounting Professions issued a number of revised

and new accounting standards (TAS, TFRS, TFRIC, SIC) as listed below.


a) Accounting standards that are effective for fiscal years beginning on or after 1 January

2011 (except Framework for the Preparation and Presentation of Financial Statements,

which is immediately effective):

Framework for the Preparation and Presentation of Financial Statements (revised 2009)

TAS 1 (revised 2009) Presentation of Financial Statements

TAS 2 (revised 2009) Inventories

TAS 7 (revised 2009) Statement of Cash Flows

TAS 8 (revised 2009) Accounting Policies, Changes in Accounting Estimates and Errors

TAS 10 (revised 2009) Events after the Reporting Period

TAS 11 (revised 2009) Construction Contracts

TAS 16 (revised 2009) Property, Plant and Equipment

TAS 17 (revised 2009) Leases

TAS 18 (revised 2009) Revenue

TAS 19 Employee Benefits

TAS 23 (revised 2009) Borrowing Costs

TAS 24 (revised 2009) Related Party Disclosures

TAS 26 Accounting and Reporting by Retirement Benefit Plans

TAS 27 (revised 2009) Consolidated and Separate Financial Statements

TAS 28 (revised 2009) Investments in Associates

TAS 29 Financial Reporting in Hyperinflationary Economies

TAS 31 (revised 2009) Interests in Joint Ventures

TAS 33 (revised 2009) Earnings per Share

TAS 34 (revised 2009) Interim Financial Reporting

TAS 36 (revised 2009) Impairment of Assets

TAS 37 (revised 2009) Provisions, Contingent Liabilities and Contingent Assets

TAS 38 (revised 2009) Intangible Assets

TAS 40 (revised 2009) Investment Property

TFRS 2 Share-Based Payment

TFRS 3 (revised 2009) Business Combinations

TFRS 5 (revised 2009) Non-current Assets Held for Sale and Discontinued Operations

TFRS 6 Exploration for and Evaluation of Mineral Resources

TFRIC 15 Agreements for the Construction of Real Estate

SIC 31 Revenue - Barter Transactions Involving Advertising Services

b) Accounting standards that are effective for fiscal years beginning on or after 1 January

2013:

TAS 12 Income Taxes

TAS 20 (revised 2009) Accounting for Government Grants and Disclosure of

Government Assistance

109

TAS 21 (revised 2009) The Effects of Changes in Foreign Exchange Rates

SIC 10 Government Assistance - No Specific Relation to Operating

Activities

SIC 21 Income Taxes - Recovery of Revalued Non-Depreciable

Assets

SIC 25 Income Taxes - Changes in the Tax Status of an Entity or its

Shareholders

The Companyûs management believes that these accounting standards will not have any

significant impact on the financial statements for the year when they are initially applied, except

for the following accounting standards which management is evaluating the impact on the

financial statements in the year when these standards are adopted.

TAS 19 Employee Benefits

This accounting standard requires employee benefits to be recognised as expense in the

period in which the service is performed by the employee. In particular, an entity has to

evaluate and make a provision forpost-employment benefits using actuarial techniques.

Currently, the Company accounts for such employee benefits when they are incurred.

TAS 12 Income Taxes

This accounting standard requires an entity to identify temporary differences, which are

differences between the carrying amount of an asset or liability in the accounting records and

its tax base, and to recognise deferred tax assets and liabilities under the stipulated guidelines.

4. Significant accounting policies4.1 Revenue recognition

Sales of goodsSales of goods are recognised when the significant risks and rewards of ownership of

the goods have passed to the buyer. Sales are the invoiced value, excluding value

added tax, of goods supplied after deducting discounts and allowances.

Interest incomeInterest income is recognised on an accrual basis based on the effective interest rate.

DividendsDividends are recognised when the right to receive the dividends is established.

4.2 Cash and cash equivalentsCash and cash equivalents consist of cash in hand and at banks, and all highly liquid

investments with an original maturity of three months or less and not subject to

withdrawal restrictions.


4.3 Trade accounts receivableTrade accounts receivable are stated at the net realisable value. Allowance for doubtfulaccounts is provided for the estimated losses that may be incurred in collection ofreceivables. The allowance is generally based on collection experiences and analysisof debt aging.

4.4 InventoriesFinished goods and work in process are valued at the lower of cost (average method)and net realisable value. Cost includes all production costs and attributable factoryoverheads.

Raw materials, spare parts and factory supplies are valued at the lower of cost (averagemethod) and net realisable value and are charged to production costs wheneverconsumed.

4.5 InvestmentsInvestments in subsidiaries are accounted for in the separate financial statements usingthe cost method.

The weighted average method is used for computation of the cost of investments.

In the event the Company reclassifies investments from one type to another, suchinvestments will be readjusted to their fair value as at the reclassification date. Thedifferences between the carrying amount of the investments and their fair value on thedate of reclassification are recorded as gains or losses in the income statement orrecorded as surplus (deficit) from changes in the value of investments in shareholdersûequity, depending on the type of investment that is reclassified.

4.6 Property, plant and equipment/DepreciationLand is stated at cost. Buildings and equipment are stated at cost less accumulateddepreciation and allowance for loss on impairment of assets (if any).

Depreciation of buildings and building improvements, machinery and equipment iscalculated by reference to their costs on the straight-line basis. Depreciation of otherequipment is calculated on the sum of the year digits basis. The estimated usefullives of plant and equipment are as follows:

Buildings and building improvements - 20, 50 yearsMachinery and equipment - 4 - 20 yearsFurniture, fixtures and office equipment - 3 - 10 yearsMotor vehicles - 5 - 7 years

Depreciation is included in determining income.

No depreciation is provided on land, machinery in transit, and assets under installation andconstruction.

111

4.7 Borrowing costsBorrowing costs directly attributable to the acquisition, construction or production of an

asset that necessarily takes a substantial period of time to get ready for its intended use

or sale are capitalised as part of the cost of the respective assets. All other borrowing

costs are expensed in the period they are incurred. Borrowing costs consist of interest

and other costs that an entity incurs in connection with the borrowing of funds.

4.8 Intangible assetsIntangible assets acquired through business combination are initially recognised at their

fair value on the date of business acquisition while intangible assets acquired in other

cases are recognised at cost. Following the initial recognition, the intangible assets are

carried at cost less any accumulated amortisation and any accumulated impairment

losses.

Intangible assets with finite lives are amortised on a systematic basis over the economic

useful life and tested for impairment whenever there is an indication that the intangible

asset may be impaired. The amortisation period and the amortisation method of such

intangible assets are reviewed at least at each financial year end. The amortisation

expense is charged to the income statement.

A summary of the intangible assets with finite useful lives is as follows:

Useful lives

Computer software 3 - 5 years

4.9 GoodwillGoodwill is initially measured at cost, which equals to the excess of cost of business

combination over the fair value of the net assets acquired. If the fair value of the net

assets acquired exceeds the cost of business combination, the excess is immediately

recognised as gain in the income statement.

Goodwill is carried at cost less any accumulated impairment losses. Goodwill is tested

for impairment annually and when circumstances indicate that the carrying value may be

impaired.

For the purpose of impairment testing, goodwill acquired in a business combination is

allocated to each of the Companyûs cash generating units (or group of cash-generating

units) that are expected to benefit from the synergies of the combination. The Company

estimates the recoverable amount of each cash-generating unit (or group of

cash-generating units) to which the goodwill relates. Where the recoverable amount

of the cash-generating unit is less than the carrying amount, an impairment loss is

recognised. Impairment losses relating to goodwill cannot be reversed in future periods.


4.10 Related party transactions

Related parties comprise enterprises and individuals that control, or are controlled by,

the Company and its subsidiaries, whether directly or indirectly, or which are under

common control with the Company and its subsidiaries.

They also include associated companies and individuals which directly or indirectly own

a voting interest in the Company and its subsidiaries that gives them significant influence

over the Company and its subsidiaries, key management personnel, directors and

officers with authority in the planning and direction of the operations of the Company and

its subsidiaries.

4.11 Foreign currencies

Transactions in foreign currencies are translated into Baht at the exchange rate ruling at

the date of the transaction. Monetary assets and liabilities denominated in foreign

currencies are translated into Baht at the exchange rate ruling at the balance sheet date.

Gains and losses on exchange are included in determining income.

4.12 Impairment of assets

At each reporting date, the Company and its subsidiaries perform impairment reviews in

respect of the property, plant and equipment and other intangible assets whenever

events or changes in circumstances indicate that an asset may be impaired. The

Company and its subsidiaries also carry out annual impairment reviews in respect of

goodwill. An impairment loss is recognised when the recoverable amount of an asset,

which is the higher of the assetûs fair value less costs to sell and its value in use, is less

than the carrying amount. In determining value in use, the estimated future cash flows

are discounted to their present value using a pre-tax discount rate that reflects current

market assessments of the time value of money and the risks specific to the asset. In

determining fair value less costs to sell, an appropriate valuation model is used. These

calculations arecorroborated by a valuation model that, based on information available,

reflects the amount thatthe Company and its subsidiaries could obtain from the disposal

of the asset in an armûs length transaction between knowledgeable, willing parties, after

deducting the costs of disposal.

An impairment loss is recognised in the income statement.

4.13 Employee benefits

Salaries, wages, bonuses, contributions to the social security fund and provident fund,

and other employee benefits are recognised as expenses when incurred.

113

4.14 Provisions

Provisions are recognised when the Company and its subsidiaries have a present

obligation as a result of a past event, it is probable that an outflow of resources

embodying economic benefits will be required to settle the obligation, and a reliable

estimate can be made of the amount of the obligation.

4.15 Income tax

Income tax is provided in the accounts at the amount expected to be paid to the taxation

authorities, based on taxable profits determined in accordance with tax legislation.

5. Use of accounting estimatesThe preparation of financial statements in conformity with generally accepted accounting

principles requires management to make estimates and assumptions in certain circumstances,

affecting amounts reported in these financial statements and related notes. Actual results could

differ from these estimates.

6. Related party transactionsDuring the years, the Company and its subsidiaries had significant business transactions with

related parties. Such transactions, which are summarised below, arose in the ordinary course

of business and were concluded on commercial terms and bases agreed upon between the

Company and those related parties.

(Unit: Million Baht)

Consolidated Separate Transfer

financial statements financial statements pricing policy

2011 2010 2011 2010

Transactions with subsidiaries

(eliminated from the consolidated

financial statements)

Sales of goods - - 795.3 467.3 With reference to

market prices

Dividend income - - 9.9 4.5 As declared

Purchases of raw materials - - 20.0 - With reference to

market prices

Transactions with related companies

Purchases of raw materials 1,052.2 197.2 - - With reference to

market prices

Other expenses 1.2 7.2 1.2 3.5 With reference to

market prices


As at 31 March 2011 and 2010, the balances of the accounts between the Company and those

related companies are as follows:(Unit: Baht)



2011 2010 2011 2010

Trade accounts receivable - related parties

Subsidiaries

Polyplex (Americas) Inc. - - 373,741,206 152,399,665

Polyplex Trading (Shenzhen) Co., Ltd. - - 4,611,757 1,127,697

Polyplex Europa Polyester Film Sanayi Ve

Ticaret Anonim Sirketi - - 450,381 -

Total trade accounts receivable - related parties - - 378,803,344 153,527,362

Amounts due from related party

Parent company

Polyplex Corporation Ltd. 221,816,318 60,646,262 - -

Total amounts due from related party 221,816,318 60,646,262 - -

Directors and managementûs remuneration

In 2011 the Company and its subsidiaries had salaries, bonuses, meeting allowances and

gratuities of their directors and management recognised as expenses totaling Baht 48.5 million

(The Company only: Baht 21.0 million) (2010: Baht 49.1 million, The Company only: Baht 23.2

million).

Guarantee obligations with related parties

The Company has outstanding guarantee obligations with its related parties, as described in

Note 23.4 to the financial statements.

7. Cash and cash equivalents(Unit: Baht)



2011 2010 2011 2010

Cash 2,191,193 1,520,152 1,066,700 628,049

Bank deposits 1,228,817,416 709,897,968 40,975,107 108,169,060

Total 1,231,008,609 711,418,120 42,041,807 108,797,109

As at 31 March 2011, bank deposits in saving accounts and fixed deposits carried interests

between 0.05 and 3.90 percent per annum (2010: between 0.05 and 3.00 percent per annum).

115

8. Trade accounts receivableThe balances of trade accounts receivable as at 31 March 2011 and 2010, aged on the basisof due dates, are summarised below.

(Unit: Baht)



2011 2010 2011 2010Unrelated parties

Not yet due 1,843,558,451 1,070,017,130 778,672,433 461,027,646

Past due

Up to 3 months 50,486,427 96,496,547 21,856,496 30,025,549

3 - 6 months 1,354,090 930,698 1,246,683 1,169

Over 6 months 4,140,736 2,556,425 1,947,079 1,419,315

Total 1,899,539,704 1,170,000,800 803,722,691 492,473,679

Less: Allowance for doubtful debts (3,380,295) (2,556,425) (1,186,638) (1,419,315)

Net 1,896,159,409 1,167,444,375 802,536,053 491,054,364

Related parties

Not yet due - - 378,803,344 153,527,362

Total - - 378,803,344 153,527,362

Trade accounts receivable - net 1,896,159,409 1,167,444,375 1,181,339,397 644,581,726

9. Inventories(Unit: Baht)

Consolidated financial statements

Allowance for diminution in

Cost value of inventories Inventories - net

2011 2010 2011 2010 2011 2010

Finished goods 568,546,262 272,370,705 (3,480,840) (8,040,766) 565,065,422 264,329,939

Work in process 251,056,821 144,995,680 - (12,926,796) 251,056,821 132,068,884

Raw materials 411,063,359 391,273,828 - - 411,063,359 391,273,828

Spare parts and

factory supplies 153,712,573 134,951,545 - - 153,712,573 134,951,545

Materials in transit 351,406,255 193,668,888 - - 351,406,255 193,668,888

Total 1,735,785,270 1,137,260,646 (3,480,840) (20,967,562) 1,732,304,430 1,116,293,084

(Unit: Baht)

Separate financial statements

Allowance for diminution in

Cost value of inventories Inventories - net

2011 2010 2011 2010 2011 2010

Finished goods 46,165,994 29,271,211 (602,658) (4,965,307) 45,563,336 24,305,904

Work in process 98,957,181 108,041,425 - (12,926,796) 98,957,181 95,114,629

Raw materials 244,159,023 211,168,909 - - 244,159,023 211,168,909

Spare parts and

factory supplies 73,171,260 71,333,061 - - 73,171,260 71,333,061

Materials in transit 8,925,918 9,965,902 - - 8,925,918 9,965,902

Total 471,379,376 429,780,508 (602,658) (17,892,103) 470,776,718 411,888,405


As at 31 March 2010, the allowance of the Company of Baht 17.9 million included allowance

of Baht 16.0 million which was due to the commercial start up of the Cast Polypropylene line

in March 2010.

10. Investments in subsidiariesThese represent investments in ordinary shares and preference shares in the following

subsidiarycompanies:(Unit: Baht)

Separate financial statementsShareholding Dividend received for

Companyûs name Paid-up capital percentage Cost the year ended 31 March

2011 2010 2011 2010 2011 2010 2011 2010

Percent Percent

Ordinary shares

Polyplex (Singapore) EUR 0.8 EUR 0.8 100.00 100.00 41,440,000 41,440,000 - -

Pte. Ltd. million million

Polyplex (Americas) USD 1.3 USD 1.3 80.24 80.24 41,660,675 41,660,675 1,995,261 3,853,667

Inc. million million

83,100,675 83,100,675 1,995,261 3,853,667

Preference shares

Polyplex (Singapore) EUR 34.5 EUR 38.1

Pte. Ltd. million million 100.00 100.00 1,713,458,176 1,890,529,659 - -

Polyplex (Americas) Inc. USD 4.2 USD 4.2

million million 96.15 96.15 139,856,000 139,856,000 7,863,095 635,087

1,853,314,176 2,030,385,659 7,863,095 635,087

Total investments in subsidiaries 1,936,414,851 2,113,486,334 9,858,356 4,488,754

During the year, the Company received Baht 139.7 million from the redemption of EUR 3.6

million of the preference shares of Polyplex (Singapore) Pte. Ltd. As a result, as at 31 March

2011, the Company had investments in 161,600 preference shares of this company (2010:

178,300 shares). These preference shares are non-cumulative and non-participative preference

shares. The Company is entitled to receive dividend at a rate not to exceed 7% per annum, in

the year in which dividend is declared.

On 24 October 2008, the meeting of the Board of Directors of the Company approved an

investment of up to USD 7 million to purchase 1.4 million non-cumulative and non-voting

preference shares of Polyplex (Americas) Inc. Up to 31 March 2011, a total of USD 4 million,

or equivalent to approximately Baht 139.9 million, has been paid for 800,000 preference shares

of this company.

117

11.

Prop

erty, p

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nd e

quipmen

t(U

nit:

Baht)

Cons

olid

ated

fina

ncial s

tate

men

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,

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and

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build

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Land

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cons

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31 M

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201

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1,91

8,44

31,01

8,66

8,13

05,69

8,51

9,17

781

,208

,219

34,319

,250

17,191

,792

-7,03

1,82

5,01

1

Purcha

ses

93,445

,575

774,70

35,13

0,93

24,17

0,15

02,55

4,99

763

7,44

6,36

116

,277

,578

759,80

0,29

6

Disp

osals

--

(1,118

,997

)(1

0,13

7,77

4)(3

,572

,895

)-

-(1

4,82

9,66

6)

Tran

sfer

in/(T

rans

fer o

ut)

47,130

,627

5,10

9,62

733

,182

,729

2,23

2,54

455

7,68

8(8

8,21

3,21

5)-

-

Capitalis

ed in

tere

st-

--

--

921,95

3-

921,95

3

Tran

slatio

n ad

justmen

t96

2,06

0(7

,423

,318

)(3

4,81

2,20

5)(5

47,626

)(2

96,156

)89

,398

-(4

2,02

7,84

7)

31 M

arch

201

132

3,45

6,70

51,01

7,12

9,14

25,70

0,90

1,63

676

,925

,513

33,562

,884

567,43

6,28

916

,277

,578

7,73

5,68

9,74

7

Accu

mul

ated

dep

reciat

ion

31 M

arch

201

0-

102,59

9,18

11,23

8,39

4,01

450

,759

,852

21,816

,818

--

1,41

3,56

9,86

5

Depr

eciatio

n for t

he y

ear

-33

,067

,653

309,73

1,28

78,57

3,03

45,53

4,66

1-

-35

6,90

6,63

5

Disp

osals

--

(699

,373

)(1

0,06

3,45

4)(2

,958

,438

)-

-(1

3,72

1,26

5)

Tran

slatio

n ad

justmen

t-

(26,40

4)49

,019

(126

,370

)(1

67,492

)-

-(2

71,247

)

31 M

arch

201

1-

135,64

0,43

01,54

7,47

4,94

749

,143

,062

24,225

,549

--

1,75

6,48

3,98

8

Net b

ook

valu

e

31 M

arch

201

018

1,91

8,44

391

6,06

8,94

94,46

0,12

5,16

330

,448

,367

12,502

,432

17,191

,792

-5,61

8,25

5,14

6

31 M

arch

201

132

3,45

6,70

588

1,48

8,71

24,15

3,42

6,68

927

,782

,451

9,33

7,33

556

7,43

6,28

916

,277

,578

5,97

9,20

5,75

9

Depr

eciatio

n fo

r th

e ye

ar

2010

(Bah

t 319

.6 m

illion

inclu

ded

in m

anufac

turin

g co

st, a

nd th

e ba

lanc

e in s

ellin

g an

d ad

minist

rativ

e ex

pens

es)

355,80

0,82

6

2011

(Bah

t 331

.8 m

illion

inclu

ded

in m

anufac

turin

g co

st, a

nd th

e ba

lanc

e in s

ellin

g an

d ad

minist

rati v

e ex

pens

es)

356,90

6,63

5


(Unit:

Baht)

Sepa

rate fi

nanc

ial s

tatemen

ts

Furn

iture

,

Build

ings

and

fixtu

res

and

Asse

ts u

nder

build

ing

Mac

hine

ryof

fice

inst

allatio

n an

dMac

hine

ry

Land

impr

ovem

ents

and

equi

pmen

teq

uipm

ent

Mot

or v

ehicles

cons

truct

ion

in tr

ansit

Tota

l

Cost

31 M

arch

201

010

3,18

1,65

243

6,10

7,85

72,87

5,84

3,07

138

,948

,240

18,599

,396

17,071

,933

-3,48

9,75

2,14

9

Purcha

ses

93,445

,575

774,70

35,13

0,93

23,80

0,63

01,71

4,80

055

4,17

0,69

516

,277

,578

675,31

4,91

3

Disp

osals

--

-(9

,188

,650

)(2

,155

,929

)-

-(1

1,34

4,57

9)

Tran

sfer

in/(T

rans

fer o

ut)

-4,70

0,00

02,39

1,02

024

,500

-(7

,115

,520

)-

-

Capitalis

ed in

tere

st-

--

--

921,95

3-

921,95

3

31 M

arch

201

119

6,62

7,22

744

1,58

2,56

02,88

3,36

5,02

333

,584

,720

18,158

,267

565,04

9,06

116

,277

,578

4,15

4,64

4,43

6

Accu

mul

ated

dep

reciat

ion

31 M

arch

201

0-

64,430

,053

755,22

7,16

031

,329

,607

9,53

7,68

1-

-86

0,52

4,50

1

Depr

eciatio

n for t

he y

ear

-22

,023

,483

160,04

8,33

84,10

0,99

84,23

9,96

5-

-19

0,41

2,78

4

Disp

osals

--

-(9

,179

,371

)(2

,155

,929

)-

-(1

1,33

5,30

0)

31 M

arch

201

1-

86,453

,536

915,27

5,49

826

,251

,234

11,621

,717

--

1,03

9,60

1,98

5

Net b

ook

valu

e

31 M

arch

201

010

3,18

1,65

237

1,67

7,80

42,12

0,61

5,91

17,61

8,63

39,06

1,71

517

,071

,933

-2,62

9,22

7,64

8

31 M

arch

201

119

6,62

7,22

735

5,12

9,02

41,96

8,08

9,52

57,33

3,48

66,53

6,55

056

5,04

9,06

116

,277

,578

3,11

5,04

2,45

1

Depr

eciatio

n fo

r th

e ye

ar

2010

(Bah

t 153

.7 milli

on in

clude

d in m

anufac

turin

g co

st, a

nd th

e ba

lanc

e in s

ellin

g an

d ad

minist

rativ

e ex

pens

es)

162,01

3,64

3

2011

(Bah

t 182

.1 milli

on in

clude

d in m

anufac

turin

g co

st, a

nd th

e ba

lanc

e in s

ellin

g an

d ad

minist

rativ

e ex

pens

es)

190,41

2,78

4

119

As at 31 March 2011, certain equipment items of the Company and its subsidiaries have been

fully depreciated but are still in use. The gross carrying amount (before deducting accumulated

depreciation) of those assets amounted to approximately Baht 33.6 million (2010: Baht 28.5

million) (The Company only: Baht 14.3 million, 2010: Baht 21.0 million).

The Company and its subsidiaries have pledged their assets amounting to approximately Baht

2,933.3 million (2010: Baht 3,645.6 million) as collateral against credit facilities received from

financial institutions (The Company only: Baht 2,087.1 million, 2010: Baht 1,680.5 million).

12. Intangible assetsDetails of intangible assets (computer software) are as follows:

Baht

Cost

As at 31 March 2010 4,377,974

Purchases 731,215

Translation adjustment (25,388)

As at 31 March 2011 5,083,801

Accumulated amortisation

As at 31 March 2010 3,111,874

Amortisation expenses for the year 631,657

Translation adjustment (13,373)

As at 31 March 2011 3,730,158

Net book value

As at 31 March 2010 1,266,100

As at 31 March 2011 1,353,643

Amortisation expenses for the year

2010 930,487

2011 631,657

13. Short-term loans from financial institutionsAs at 31 March 2011, short-term loans from financial institutions of a subsidiary company carry

interest at Libor + 1.50% per annum (2010: Libor + 2.50% per annum). The subsidiaryûs short-

term loans from financial institutions are guaranteed by the Company.


14. Long-term loans from financial institutions(Unit: Baht)


Loans Repayment schedule financial statements financial statements

2011 2010 2011 2010

Floating rate loans Repayable as from April 2006

(Euribor + 0.6% to December 2017

to 3.125%) 774,374,084 1,669,811,238 269,134,871 373,102,200

Floating rate loans Repayable as from

(Libor + 1.5% to 2.0%) October 2009 to September 2016 922,875,871 915,129,008 922,875,871 915,129,007

Fixed rate loans Repayable as from

(3.83% to 5.54%) April 2006 to July 2016 194,683,435 221,743,627 184,191,105 135,311,163

Total 1,891,933,390 2,806,683,873 1,376,201,847 1,423,542,370

Less: Current portion (387,200,147) (454,064,187) (256,001,425) (192,138,605)

Net 1,504,733,243 2,352,619,686 1,120,200,422 1,231,403,765

The Companyûs loan facilities are secured by the mortgage of land, premises and machinery ofthe Company. The subsidiaryûs loan facilities are secured by the mortgage of its land andpremises and the pledge of its machinery, and are guaranteed by the Company as describedin Note 23.4 to the financial statements.

The loan agreements contain covenants that, among other things, require the Company and itssubsidiaries to maintain a certain debt to equity ratio and debt service coverage ratio, andrequire a subsidiary to maintain a particular current ratio.

During the current fiscal year, the Company was granted long-term loan facilities by two banks,amounting to USD 16.5 million. These loans were granted for investment in the SiliconeCoating project and were secured by the mortgage of the lands, premises and machinery ofthe Company. As at 31 March 2011, the Company has already drawn down a total of USD 6.9million from these facilities, or equivalent to Baht 210.0 million.

During the current fiscal year, a subsidiary repaid loans amounting to EUR 14.6 million inadvance.

The Company entered into two interest rate swap agreements with a bank, under which theCompany agreed to swap a floating interest rate of LIBOR for a fixed interest rate of 2.61percent per annum on principal of USD 4.16 million and to swap a floating interest rate ofLIBOR for a fixed interest rate of 3.54 percent per annum on principal of USD 2.29 million. Theswap agreements will mature on 31 July 2016.

15. Statutory reservePursuant to Section 116 of the Public Limited Companies Act B.E. 2535, the Company isrequired to set aside to a statutory reserve at least 5 percent of its net income after deducting

121

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

16. Expenses by natureSignificant expenses by nature are as follows:

(Unit: Baht)



2011 2010 2011 2010

Salaries and wages and other employee benefits 513,304,039 416,894,766 217,102,054 170,394,935

Depreciation and amortisation 357,538,292 356,731,313 190,412,784 162,013,643

Loss on diminutions in value of inventories (Reversal) (17,289,445) 1,574,526 (17,289,445) 1,709,422

Raw materials and consumables used 4,545,330,391 4,003,535,540 2,453,210,489 2,025,784,772

Changes in inventories of finished goods

and work in process (402,236,698) 49,719,022 (7,810,539) (54,216,189)

17. Corporate income taxNo corporate income tax was payable for the years since the Company has been granted

promotional privileges under the Investment Promotion Act B.E. 2520 by the Board of Investment.

Polyplex Europa Polyester Film Sanayi Ve Ticaret Anonim Sirketi, being a manufacturing

company which operates in a Free Trade Zone, is eligible to benefit from corporate tax

exemptions, until the end of the financial year of full membership of Turkey to the European

Union. However, this exemption is limited to the earnings related to the sale of manufactured

goods.

18. Promotional privilegesThe Company has received promotional privileges from the Board of Investment for the

manufacture of polyester films, metallized films, extrusion coated films, cast polypropylene films

and PET resins. As a promoted company, the Company must comply with certain conditions

and restrictions provided for in the promotional certificates.

The Companyûs sales for the years ended 31 March 2011 and 2010 divided according to

promoted and non-promoted operations are set out below.(Unit: Baht)


Promoted operations Non-promoted operations Total

2011 2010 2011 2010 2011 2010

Sales

Domestic sales 1,029,784,828 674,224,365 917,550 6,607,762 1,030,702,378 680,832,127

Export sales 3,948,639,016 2,493,823,877 1,395,609 - 3,950,034,625 2,493,823,877

Total sales 4,978,423,844 3,168,048,242 2,313,159 6,607,762 4,980,737,003 3,174,656,004


19. Basic earnings per shareBasic earnings per share are calculated by dividing net income for the year by the weightedaverage number of ordinary shares in issue during the year.

20. Dividends(Unit: Baht)

Dividends Approved by Total dividends Dividend per share

Final dividends for 2009 Annual General Meeting of 96,000,000 0.120

the shareholders on 28 July 2009

Interim dividends for 2010 Board of Directorsû meeting on 276,000,000 0.345

28 January 2010

Total dividends for fiscal year 2010 372,000,000 0.465

Final dividends for 2010 Annual General Meeting of the 140,000,000 0.175

shareholders on 22 July 2010

Interim dividends for 2011 Board of Directorsû meeting 472,000,000 0.590

on 28 October 2010

Total dividends for fiscal year 2011 612,000,000 0.765

21. Segment informationThe Company and its subsidiariesû operations involve principally a single industry segment, themanufacture and distribution of polyester films, metallized films, extrusion coated films, castpolypropylene films and PET resins, and are carried on in two geographic areas in Thailandand overseas countries, as operated by subsidiaries. The financial information of the Companyand its subsidiaries by geographical segment, for the years ended 31 March 2011 and 2010are as follows:

(Unit: Million Baht)

Elimination of

inter-segment

Thailand Overseas countries revenues Consolidation

2011 2010 2011 2010 2011 2010 2011 2010

Sales to external customers 4,185.4 2,707.4 6,997.8 4,418.0 - - 11,183.2 7,125.4

Inter-segment sales 795.3 467.3 1,176.3 588.1 (1,971.6) (1,055.4) - -

Total sales 4,980.7 3,174.7 8,174.1 5,006.1 (1,971.6) (1,055.4) 11,183.2 7,125.4

Segment income 1,678.3 487.0 2,531.0 609.9 (195.6) 73.8 4,013.7 1,170.7

Unallocated income and expenses:

Finance cost (92.7) (114.7)

Corporate income tax (27.9) (12.2)

Minority interest (10.2) (4.4)

Net income 3,882.9 1,039.4


Property, plant and equipment 3,115.0 2,629.2 2,864.2 2,989.0 - - 5,979.2 5,618.2

Unallocated assets 5,953.7 3,248.5

Total assets 11,932.9 8,866.7

123

Transfer prices between segments are as set out in Note 6 to the financial statements.

22. Provident fundThe Company and its employees have jointly established a provident fund in accordance

with the Provident Fund Act B.E. 2530. Both employees and the Company contributed to the

fund monthly at the rate of 4 percent (2010: 4 percent) of basic salary. The fund, which is

managed by a licensed fund manager, will be paid to employees in accordance with the

fund rules. During the year ended 31 March 2011, the Company contributed Baht 2,727,617

(2010: Baht 2,443,317) to the fund.

23. Commitments and contingent liabilities

23.1 Capital commitments

As at 31 March 2011, the Company and its subsidiaries had capital commitments

of approximately Baht 1,184.00 million (2010: Baht 328.06 million), relating to the

construction of building and acquisition of machinery and equipment (The Company

only: Baht 547.29 million, 2010: Baht 328.06 million).

23.2 Operating lease commitments

The Company has entered into several lease agreements in respect of the lease of

office building space and equipment.

Future minimum rentals payable under these leases as at 31 March 2011 are as follows:

Thousand Baht

Payable within:

1 years 1,004

1 to 5 years 643

23.3 Service agreements

As at 31 March 2011, the Company had commitments totaling Baht 6.1 million under

various service agreements (2010: Baht 17.6 million). These agreements expire between

May 2011 and January 2013.

23.4 Guarantees

The Company has given short-term guarantees worth USD 20.0 million (2010: USD 8.0

million) against working capital facilities obtained by its subsidiary (Polyplex (Americas)

Inc.). In addition, the Company has given a guarantee of EUR 6.7 million (2010: EUR 8.9

million) for the long-term loans obtained by its subsidiary (Polyplex Europa Polyester

Film Sanayi Ve Ticaret Anonim Sirketi).


As at 31 March 2011, there were outstanding bank guarantees of approximately Baht

43.8 million and EUR 9.9 million (2010: Baht 0.8 million and EUR 7.8 million) issued

by the banks on behalf of the Company and its subsidiaries in respect of certain

performance bonds as required in the normal course of businesses (The Company only:

Baht 43.8 million, 2010: Baht 0.8 million).

24. Financial instruments24.1 Financial risk management

The Company and its subsidiariesû financial instruments, as defined under Thai

Accounting Standard No. 107 çFinancial Instruments: Disclosure and Presentationsé,

principally comprise cash and cash equivalents, trade accounts receivable, investments,

trade accounts payable, and short-term and long-term loans. The financial risks

associated with these financial instruments and how they are managed is described

below.

Credit riskThe Company and its subsidiaries are exposed to credit risk primarily with respect to

trade accounts receivable and other receivables. The Company and its subsidiaries

manage the risk by adopting appropriate credit control policies and procedures and

considering credit insurance contracts from time to time, and therefore do not expect to

incur material financial losses. In addition, the Company and its subsidiaries do not have

high concentration of credit risk since they have a large customer base. The maximum

exposure to credit risk is limited to the carrying amounts of receivables and other

receivables as stated in the balance sheet.

Interest rate riskThe Company and its subsidiariesû exposure to interest rate risk relates primarily to its

cash at banks, bank overdrafts, and short-term and long-term borrowings. However,

since most of the Companyand its subsidiariesû financial assets and liabilities bear

floating interest rates or fixed interest rates which are close to the market rate, the

interest rate risk is expected to be minimal. In addition, the Company considers interest

rate swap agreements from time to time so as to reduce exposure to the interest rate

risk.

Significant financial assets and liabilities as at 31 March 2011 classified by type of

interest rates are summarised in the table below, with those financial assets and

liabilities that carry fixed interestrates further classified based on the maturity date, or

the repricing date if this occurs before the maturity date.

125

Consolidated financial statements

Fixed interest rates Floating Non-

Within 1-5 Over 5 interest interest Interest

1 year years years rate bearing Total rate

(Million Baht) (% p.a.)

Financial Assets

Cash and cash equivalents 944.3 - - 67.2 219.5 1,231.0 0.05 - 3.90

Current investments 71.9 - - - 93.0 164.9 2.30 - 2.32

Trade accounts receivable - - - - 1,896.2 1,896.2 -

Amounts due from related party - - - - 221.8 221.8 -

1,016.2 - - 67.2 2,430.5 3,513.9

Financial liabilities

Short-term loans from financial institutions - - - 194.5 - 194.5 Libor + 1.50

Trade accounts payable - - - - 1,088.6 1,088.6 -

Accounts payable for purchases of fixed assets - - - - 202.0 202.0 -

Long-term loans 47.5 138.4 8.8 1,697.2 - 1,891.9 See Note 14

47.5 138.4 8.8 1,891.7 1,290.6 3,377.0


Fixed interest rates Floating Non-

Within 1-5 Over 5 interest interest Interest

1 year years years rate bearing Total rate

(Million Baht) (% p.a.)

Financial Assets

Cash and cash equivalents - - - 39.9 2.1 42.0 0.10 - 0.75

Current investments 71.9 - - - 93.0 164.9 2.30 - 2.32

Trade accounts receivable - - - - 1,181.3 1,181.3 -

71.9 - - 39.9 1,276.4 1,388.2

Financial liabilities

Trade accounts payable - - - - 619.5 619.5 -

Accounts payable for purchases of fixed assets - - - - 202.0 202.0 -

Long-term loans 37.0 138.4 8.8 1,192.0 - 1,376.2 See Note 14

37.0 138.4 8.8 1,192.0 821.5 2,197.7

As at 31 March 2011, the Company had interest rate swap agreements with a bank to

swap floating interest rate to fixed interest rate, as described in Note 14 to the financial

statements.

Foreign currency risk

The Company and its subsidiariesû exposure to foreign currency risk arise mainly from

trading transactions that are denominated in foreign currencies. The Company and its

subsidiaries seekto reduce this risk by entering into forward exchange contracts when

it considers appropriate. Generally, the forward contracts mature within one year.


The Companyûs balances of financial assets and liabilities denominated in foreign

currencies asat 31 March 2011 are summarised below.

Financial Financial Average exchange rate

Foreign currency assets liabilities as at 31 March 2011


US dollar 22.39 39.55 30.2967

Euro 3.92 6.69 42.8572

Japanese yen 73.93 0.06 0.3658

Swiss franc - 2.36 33.0163

The Companyûs foreign exchange contracts outstanding at 31 March 2011 are

summarised below.

Bought Sold Contractual exchange rate

Foreign currency amount amount Bought Sold


US dollar 2.70 37.82 Baht 30.6650 - Baht 30.0600 -

33.2380 per USD 1 32.6654 per USD 1

Swiss franc 2.21 - Baht 29.5100 - 30.7096 per CHF 1 -

Swiss franc 0.49 - CHF 1.0113 per USD 1 -

Euro 0.84 3.79 Baht 39.4520 - Baht 39.9650 -

42.9400 per EUR 1 42.9400 per EUR 1

Euro 0.05 - USD 1.3089 per EUR 1 -

Japanese yen - 70.33 - Baht 0.3686 - 0.3763

per JPY 1

As at 31 March 2011, a subsidiary had forward foreign exchange contracts as follows:

Bought amount Contractual exchange rate

YTL 1.20 million YTL 1.5942 - 1.6280 per USD 1

24.2 Fair values of financial instruments

Since the majority of the Company and its subsidiariesû financial instruments are

short-term in nature or bear floating interest rates, their fair value is not expected to

be materially different from the amounts presented in the balance sheets.

A fair value is the amount for which an asset can be exchanged or a liability settled

between knowledgeable, willing parties in an armûs length transaction. The fair value is

determined byreference to the market price of the financial instrument or by using an

appropriate valuation technique, depending on the nature of the instrument.

127

25. Capital managementThe primary objective of the Companyûs capital management is to ensure that it has an

appropriate financial structure and preserves the ability to continue its business as a going

concern.

According to the balance sheet as at 31 March 2011, the Groupûs debt-to-equity ratio was

0.43:1 (2010: 0.77:1) and the Companyûs debt-to-equity ratio was 0.46:1 (2010: 0.52:1).

26. Approval of financial statementsThese financial statements were authorised for issue by the Companyûs authorised directors

on 13 May 2011.


Inform

ation

of D

irector a

nd M

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emen

t of t

he C

ompa

ny a

s on

31.5.20

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of

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(Year

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usin

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pany

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and

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c

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rtific

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ram

2002

-200

3Ch

airm

anAs

ian

Prod

uctiv

ity C

ounc

il, Ja

pan

(DCP

) Class

30/20

03, I

OD

2005

-200

9Ch

airm

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ighb

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1994

-200

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CHNO

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ASIA

, Singa

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anjiv

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afDi

rector

&53

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elor

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--

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-Pre

sent

Dire

ctor

Polyp

lex

(Amer

icas) In

c.

Vice

Cha

irman

Agric

ultura

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inee

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2004

-Jun

eû08

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ctor

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lex

(Asia

) Pte. L

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arch

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ctor

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lex

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rese

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& C

hairm

anPo

lyplex

Eur

opa

Polye

ster F

ilm S

anay

i

Ve T

icare

t Ano

im S

irketi,

Turkey

2002

-Pre

sent

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Cha

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lex

(Tha

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) Plc.

2002

-Pre

sent

Chairm

anPo

lyplex

Corp

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Ltd.

129

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ation

of D

irector a

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anag

emen

t of t

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ompa

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31.5.20

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of B

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rector

52Fe

llow

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tere

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coun

tant

--

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sent

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ctor

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(Amer

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c.

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te o

f Cha

rtere

d Ac

coun

tants

2004

-Mar

chû08

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ctor

Polyp

lex

(Asia

) Pte. L

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of In

dia

2004

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sent

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ctor

Polyp

lex

(Singa

pore

) Pte. L

td.

Asso

ciate C

ompa

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ecre

tary

2004

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sent

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ctor

Polyp

lex E

urop

a Po

lyeste

r Film

San

ayi

The

Insti

tute o

f Com

pany

Sec

retarie

sVe

Tica

ret A

noim

Sirk

eti,

Turkey

of In

dia

2002

-Pre

sent

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ctor

Polyp

lex

(Tha

iland

) Plc.

2001

-Pre

sent

Exec

utive

Dire

ctor

Polyp

lex

Corp

oration

Ltd.

4Mr.R

anjit

Sing

hDi

rector

54Ba

chelor

ûs de

gree

--

July

2007

-Pre

sent

Exec

utive

Dire

ctor

Polyp

lex

Corp

oration

Ltd.

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hanica

l Eng

inee

ring,

2004

-Mar

chû08

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ctor

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lex

(Asia

) Pte. L

td.

Birla

Institu

te o

f Tec

hnolog

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04-P

rese

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Polyp

lex E

urop

a Po

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r Film

San

ayi

& Sc

ienc

e, P

ilani, I

ndia

Ve T

icare

t Ano

im S

irketi,

Turkey

Mas

terûs

deg

ree

2002

-Pre

sent

Dire

ctor

Polyp

lex

(Tha

iland

) Plc.

MBA

, Ind

ia o

f Ins

titute

of

Man

agem

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Ahmed

abad


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ation

of D

irector a

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anag

emen

t of t

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ompa

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usin

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ûs de

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--

2004

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sent

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ctor

& A

udit

Committee

Polyp

lex

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iland

) Plc.

Raman

gkur

aCo

mmittee

mem

ber

First C

lass

Hon

ors, B

.A. (

Politi

cal

mem

ber

Scienc

e), C

hulalong

korn

Unive

rsity

1994

-Pre

sent

Chairm

anBa

ngko

k Ex

pres

sway

Pub

lic C

o., L

td.

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terûs

Deg

ree

1995

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sent

Chairm

an o

f the

Exe

cutiv

eAd

vanc

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ro P

ublic

Co., L

td.

Econ

omics

, Univ

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y of

Boar

d

Penn

sylva

nia, U

.S.A

.20

04-P

rese

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airm

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ai-Lao

Ass

ociatio

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Ph.D

. (Ec

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), Un

iversity

of

2005

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Chairm

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sylva

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.S.A

., Do

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of L

aw20

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airm

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East A

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nerg

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., Ltd.

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ebster

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SAPr

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airm

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ng-M

od H

ospital C

o., L

td.

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Pape

r Co., L

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Dire

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Adva

nce

Agro

Holding

Co., L

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Pres

ent

Dire

ctor

Thailand

Dev

elop

men

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earch

Institu

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ound

ation

2005

-Pre

sent

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Bang

kok

Airw

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Co.,

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2006

- Apr

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11Di

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td.

1999

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on th

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Bang

kok

Bank

Pub

lic C

o., L

td.

2008

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ory

on th

e Gro

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ower

Intern

ationa

l Co., L

td.

2001

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Foun

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orum

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Hono

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2004

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Pro

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Pub

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o., L

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131

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65Ba

chelor

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--

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(Tha

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2002

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ohit

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IT R

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DIA

Engine

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plas

tics

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