Clarification of Change Operation Results in Excess of 20%

28th May, 2007

Subject: Clarification of change in the operating results in excess of 20% in financial statement

To: Managing Director The Stock Exchange of Thailand

The company's consolidated operating results showed a net profit of Baht 341.84 million in the audited financial statements for the year ended 31 March 2007, being a decrease in net profit of Baht 219.13 million or 39.06% compared to the preceding year, or a change in excess of 20%.

The company will accordingly like to clarify the reasons for this change as follows:

The company recorded total consolidated revenues of Baht 4,808.83 million, being an increase over the preceding year by Baht 1,381.38 million or 40.3% mainly due to increase in revenue from its subsidiaries in Turkey and USA. The company recorded total consolidated expenses (cost of sales and selling and administrative expenses) of Baht 4,380.25 million being an increase over the preceding year by Baht 1,543.07 million or 54.39% brought about by increase in raw material prices (arising mainly from the increase in crude oil prices), higher power/fuel expenses as also higher selling & administrative costs incurred by subsidiaries. The financial charges during the year were Bt 80.81 million, an increase of Bt. 55.23 million mainly due to interest on long term borrowings in PTL and Turkey subsidiary.

The combined net result of decline in selling prices due to adverse market condition in the first half of the year as also the sharp increase in cost of sales along with increase in financial charges, etc explains the decrease in consolidated profitability by Bt. 219.13 million.

Please be informed accordingly.

 

Yours sincerely,

Mr. Manish Gupta
Director