Ccet 12

01 FINANCIALHIGHLIGHTS

02 MESSAGEFROMTHEBOARDOFDIRECTORS

09 BOARDOFDIRECTORS

13 GENERALINFORMATION

14 SHAREHOLDINGSTRUCTUREANDMANAGEMENT

15 CAPITALSTRUCTURE

20 THEGROUPSTRUCTUREOFTHECOMPANY

22 NATUREOFBUSINESSOPERATION

26 INDUSTRYANDMARKETCOMPETITION

30 RISKFACTOR

32 MANAGEMENTSTRUCTURE

39 CORPORATEGOVERNANCE

45 RELATEDPARTYTRANSACTIONS

56 AUDITCOMMITTEEREPORT2012

57 INTERNALCONTROL

58 DIRECTORS’REPORTING

59 SOCIALANDENVIRONMENTRESPONSIBILITIES

62 MANAGEMENTDISCUSSIONANDANALYSIS

67 REPORTOFINDEPENDENTAUDITOR

68 FINANCIALSTATEMENT

76 NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS

CONTENTS

FINANCIAL HIGHLIGHTS

BALANCE SHEET SUMMARY 2012 2011 2010Cash and cash equivalents 1,840,184,429 1,975,170,219 5,343,688,166Trade and other receivables 26,803,583,982 26,703,764,983 29,010,519,251Inventories 11,742,091,078 14,053,377,145 9,912,792,821Total current assets 41,851,707,452 44,613,551,977 45,697,099,348Investment 162,768,341 197,712,637 207,824,723Property, plant and equipment 14,928,285,983 10,996,877,401 8,074,265,298Total assets 57,505,351,361 56,412,322,092 54,593,332,915Short-term loan from financial institutions 15,799,177,871 15,362,429,740 11,924,375,433Trade and other payables 24,160,305,239 24,666,329,780 26,821,591,936Total current liabilities 41,275,657,101 41,770,409,660 40,836,144,555Non-current liabilities 948,025,171 73,034,847 36,735,907Total liabilities 42,223,682,272 41,843,444,507 40,872,880,462Registered capital 4,277,556,192 4,277,556,192 4,485,386,292Paid-up capital 4,077,556,192 4,077,556,192 4,077,556,192Retained earnings 9,422,632,952 8,898,215,995 8,463,467,836Total shareholders’ equity 15,281,669,089 14,568,877,585 13,720,452,453

PROFIT & LOSS STATEMENT SUMMARY 2012 2011 2010Sales 140,193,019,630 131,978,901,783 125,598,919,314Total revenues 141,754,927,078 132,850,613,700 125,816,503,423Cost of sales 135,642,813,604 127,915,409,340 120,901,149,821Selling and administrative expenses 3,994,321,114 3,498,776,251 2,911,255,415Total expense 140,059,060,903 131,414,185,591 123,812,405,236Net profit 1,198,985,352 1,087,157,150 1,655,072,989

KEY FINANCIAL RATIOS 2012 2011 2010Liquidity Ratios Current Ratio (times) 1.01 1.07 1.12Quick ratio (times) 0.73 0.73 0.88Collection period (days) 69 76 76Inventory turnover (days) 34 34 27Payment period (days) 65 72 68Cash cycle (days) 38 37 35Profitability Ratios Gross profit margin (%) 3.25 3.08 3.74Operating profit margin (%) 0.40 0.43 1.42Net profit margin (%) 0.85 0.82 1.32Return on equity (%) 8.03 7.69 11.16Efficiency Ratios Return on total assets (%) 2.11 1.96 3.27Return on fixed assets (%) 21.29 24.55 43.90Total assets turnover (times) 2.46 2.38 2.48Leverage Ratios Total liabilities / Total equity 2.76 2.87 2.98Interest coverage Ratio (times) 4.42 5.75 10.73Information on Shares (Baht) Book value per share 3.75 3.57 3.36Earnings per share 0.29 0.27 0.42Dividend per share 0.16 0.16 0.15

ANNUAL REPORT 2012

01

Review 2012, a foreseen of extended impact of global economic downturn and the unexpected natural disasters back in year end 2011 had continuously taken effect among major consuming countries such as America, Japan and Euro zone, and that the performance of emerging market was lower than market expectation which then resulted in a fatigued economic growth overall in 2012.

2012 MESSAGE FROM THE BOARD OF DIRECTORS

THE COMPANY HAS AGAIN MANAGED TO ACHIEVE SALE REVENUE OF USD 4.57 BILLION WITH THE ANNUAL GROWTH RATE OF 7% IN 2012.

02

CAL-COMP ELECTRONICS (THAILAND) PUBLIC COMPANY LIMITED

Nonetheless, while the global growth rate has projected at a lower rate at 3.3% by IMF, the Company has again managed to achieve sale revenue of USD 4.57 billion with the annual growth rate of 7% in 2012. After years of implementing its global manufacturing base worldwide since 2009, the Company has overcome varieties of impossible challenges and be able to integrate the resources altogether forming a sound and substantial operating network through Thailand, China, Malaysia, Singapore and Philippine in Asia, USA, Mexico and Brazil in North & South America to satisfy our customers with just in time service while be able to maintain its cost competitiveness among other competitors. In 2012, the newly established subsidiary in Philippine has successfully set up and has already launched its first mass shipment within the fourth quarter. In addition to that, the factory expansions in Thailand which all have well prepared the Company to further its position in the emerging market as well as among the ASEAN entities in the upcoming trend. Overlook 2013, while manufacturing companies are facing difficulties in labor shortage and progressive labor cost increment in recent years, the Company has foreseen the needs of advanced technology as the alternative and necessary solution. The Company has therefore began a series of research and development and has scheduled to implement the automation technology and robot arms onto our production lines which is able to maximum the performance whiling strengthening our capability as well minimizing the overall cost structure. On behalf of the Board, we believe the Company will continuously to build and grow a stronger foundation in generating utmost value for all of us, and we would like to take this opportunity to express our sincere gratitude to the management team and all the staffs for their relentless effort and selfless contribution. We would also like to once again extend our highest appreciation to our valued customers, suppliers, partners, banks, government authorities and shareholders for their ongoing faith and support. We are honored to serve as the Board of the Company and we remain confident for the Company’s growth in 2013 and onward.

MR. HSU, SHENG-HSIUNG Chairman

MR. SHEN, SHYH-YONG Vice Chairman

0�ANNUAL REPORT 2012

CEREMONY OF PILIPPINES FACTORY OPENNING

04


04

05ANNUAL REPORT 2012

GLOBAL MANUFACTURING BASECAL-COMP ELECTRONICS (THAILAND) PLC.

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0707ANNUAL REPORT 2012

PRODUCT DIVERSITYCAL-COMP ELECTRONICS (THAILAND) PLC.

CAL-COMP ELECTRONICS (THAILAND) PUBLIC COMPANY LIMITED0�

BOARD OF DIRECTORS

MR. SHEN, SHYH-YONG

Position : ViceChairman

Education : DoctorofLaw,WhittierLawSchool,USA MasterofBusinessAdministration,SouthernCaliforniaUniversity,USA BachelorofPublicAdministration,NationalChengchiUniversity,Taiwan

Work Experience : 2004-2008 •AssistantVicePresidentofCal-CompElectronics(Thailand)Plc. 2008-Present •ManagingDirectorofKinpoElectronicsInc. 2008-Present •ViceChairmanofCal-CompElectronics(Thailand)Plc. 2008-Present •DirectorandManagingDirectorofCal-CompElectronicsandCommunicationCo.,Ltd. 2008-Present •ChairmanandManagingDirectorofCal-CompOpticalElectronics(Suzhou)Co.,Ltd. 2008-Present •ChairmanandManagingDirectorofCal-Comp(Technology)(Suzhou)Co.,Ltd. 2008-Present •ChairmanandManagingDirectorofCal-CompElectronicsandCommunication(Suzhou)Co.,Ltd. 2008-Present •ChairmanandManagingDirectorofCal-CompElectronics(Suzhou)Co.,Ltd. 2010-Present •DirectorofKinpoElectronicsInc. 2010-Present •ChairmanofCalComp(Malaysia)SDN.BHD. 2010-Present •ChairmanofCal-CompPrecision(Singapore)Ltd. 2010-Present •ChairmanofCal-CompPrecision(Malaysia)Sdn.Bhd. 2010-Present •ChairmanofCal-CompPrecision(Thailand)Ltd. 2010-Present •ChairmanandManagingDirectorofAvaplasPrecisionPlastics(Shanghai)Co.,Ltd. 2010-Present •ChairmanofCal-CompPrecision(Dongguan)Ltd. 2010-Present •ChairmanofCal-CompPrecision(Wujiang)Ltd. 2010-Present •ChairmanofCal-CompElectronics(USA)Co.,Ltd. 2011-Present •ChairmanofCal-CompUSA(Indiana),Inc.(formername:TotalElectronicsLLC) 2011-Present •ChairmanofCal-CompUSA(SanDiego),Inc.(formername:SMSTechnologies,Inc.) 2011-Present •ChairmanofCal-CompIndustriaeComerciodeElectronicaeInformaticaLtda. 2011-Present •ChairmanofCal-CompElectronicsdeMexicoCo.,S.A.deC.V. 2012-Present •ChairmanofNewKinpoGroupTechnology(Philippines),Inc. 2012-Presnet •DirectorofCompalElectronics,Inc.

MR. HSU, SHENG-HSIUNG

Position : Chairman

Education : BachelorofChinese,NationalTaiwanNormalUniversity,Taiwan

Work Experience : 1989-Present •ChairmanofCal-CompElectronics(Thailand)Plc. 1992-Present •ChairmanofKinpoElectronicsInc. 1994-Present •ChairmanofCompalElectronicsInc. 2002-Present •ChairmanofCal-CompElectronics(Suzhou)Co.,Ltd. 2003-Present •DirectorofCal-CompOpticalElectronics(Suzhou)Co.,Ltd. 2004-Present •ChairmanofCal-CompElectronicsandCommunicationCo.,Ltd. 2008-Present •DirectorofCal-CompTechnology(Suzhou)Co.,Ltd. 2008-Present •DirectorofCal-CompElectronicsandCommunication(Suzhou)Co.,Ltd.

Securities holding (As of December 31, 2012) : Mr.Hsu,Sheng-Hsiungholds11,710,000sharesandhisspouseMrs.Hsu,TsaiLi-Chuholds13,080,000shares.

IOD Program : NotattendthecoursefromThaiInstitutionofdirectorsyet.

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ANNUAL REPORT 2012

Securities holding (As of December 31, 2012) : Mr.Shen,Shyh-Yongholds8,819,900shares,hisspouseMrs.Hsu,Yung-Hsuholds1,269,300shares,minorchild

Shen,Hsin-YuandShen,Pei-ChieachholdTDRfor30,000shares.

IOD Program : NotattendthecoursefromThaiInstitutionofdirectorsyet MR. KHONGSIT CHOUKITCHAROEN

Position : ManagingDirector

Education : MasterofBusinessAdministration,PacificWesternUniversity,Thailand BachelorofEngineering,FengChiaUniversity,Taiwan

Work Experience : 2006-Present •ManagingDirectorofCal-CompElectronics(Thailand)Plc. 2009-Present •DirectorofCal-CompOpticalElectronics(Suzhou)Co.,Ltd. 2009-Present •DirectorofCal-CompElectronics(Suzhou)Co.,Ltd. 2009-Present •DirectorofCal-CompElectronicsandCommunications(Suzhou)Co.,Ltd. 2009-Present •DirectorofCal-CompTechnology(Suzhou)Co.,Ltd. 2010-Present •DirectorandManagingDirectorofCalComp(Malaysia)SDN.BHD. 2010-Present •DirectorofCal-CompPrecision(Singapore)Ltd. 2010-Present •DirectorofCal-CompPrecision(Malaysia)Sdn.Bhd. 2011-Present •ManagingDirectorofCal-CompIndustriaeComerciodeElectronicaeInformaticaLtda. 2011-Present •DirectorofCal-CompElectronicsandCommunicationCo.,Ltd. 2012-Present •DirectorofCal-CompPrecision(Thailand)Co.,Ltd 2012-Present •DirectorofNewKinpoGroupTechnology(Philippines),Inc.

Securities holding (As of December 31, 2012) : 1,400,000shares.

IOD Program : AttendedtheDirectorCertificationProgram(DCP),class47/2004 MR. HSU, SHENG-CHIEH

Position : Director

Education : BachelorofEngineering,TamkangUniversity,Taiwan

Work Experience : 1989-Present •DirectorofCal-CompElectronics(Thailand)Plc. 1994-Present •DirectorofKinpoElectronicsInc. 1994-Present •SupervisorofCompalElectronicsInc. 2002-Present •DirectorofCal-CompElectronics(Suzhou)Co.,Ltd. 2004-Present •DirectorofCal-CompElectronicsandCommunicationCo.,Ltd.

Securities holding (As of December 31, 2012) : 5,560,000shares

IOD Program : NotattendthecoursefromThaiInstitutionofdirectorsyet.

10CAL-COMP ELECTRONICS (THAILAND) PUBLIC COMPANY LIMITED

MR. KO, CHARNG-CHYI

Position : Director

Education : DoctorofBusinessAdministration,LincolnUniversity,USA MasterofBusinessAdministration,NationalChengchiUniversity,Taiwan BachelorofBusinessAdministration,NationalTaiwanUniversity,Taiwan

Work Experience : 1989-Present •DirectorofCal-CompElectronics(Thailand)Plc. 1995-Present •SupervisorofKinpoElectronics,Inc. 1995-Present •SupervisorofCompalElectronics,Inc.

Securities holding (As of December 31, 2012) : 780,000shares

IOD Program : NotattendthecoursefromThaiInstitutionofdirectorsyet. MR. CHANG, ZUEI-WEI

Position : Director

Education : MasterofBusinessAdministration,PacificWesternUniversity

Work Experience : 2008-2011 •VicePresidentofKinpoElectronicsInc. 2011-2012 •VicePresidinntofCal-CompElectronicsandCommunicationCo.,Ltd. 2010-Present •DirectorofCalComp(Malaysia)SDN.BHD. 2011-Present •DirectorofCal-CompPrecision(Signapore)Ltd. 2012-Present •DirectorofCal-CompElectronics(Thailand)Plc. 2012-Presnet •SeniorVicePresidentofCal-CompElectronicsandCommunicationCo.,Ltd.

Securities holding (As of December 31, 2012) : 680,000shares

IOD Program : NotattendthecoursefromThaiInstitutionofdirectorsyet. MR. ALAN KAM

Position : IndependentDirectorandChairmanofAuditCommittee

Education : MasterofBusinessAdministration,UniversityofDenver,USA BachelorofBusinessAdministration,UniversityofDenver,USA

Work Experience : 2000-Present •IndependentDirectorandChairmanofAuditCommitteeofCal-CompElectronics(Thailand)Plc. 2008-Present •PrincipalofLibertasCo.,Ltd. 2012-Present • IndependentDirector&AuditCommitteeMemberofThaiReLifeAssurancePlc. 2012-Present •ExecutiveDirectorofKrungsriAssetManagementCo.,Ltd. 2013-Present •ExecutiveDirectorofMahaphantFibreCementPlc.

Securities holding (As of December 31, 2012) : None

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ANNUAL REPORT 2012

IOD Program : DirectorCertificationProgramDCP39/2004 FellowMember&CharteredDirector AttendedtheIOD-CorporateSocialResponsibilitySeminarin12/2007 AttendedtheCharteredDirectorClass(CDC)on10/2008 MR. WILLIAM HANG MAN CHAO

Position : IndependentDirectorandAuditCommittee

Education : MasterofBusinessAdministrationMajorinFinanceandMarketingUniversityofChicago,USA BachelorofScienceMajorinFinance,IndianaUniversity,USA

Work Experience : 2000-Present •IndependentDirectorandAuditCommitteeofCal-CompElectronics(Thailand)Plc. 1998-2010 •ManagingDirectorofWingWahAdvisory(Thailand)Limited 1999-Present •DirectorofBangkokGardenPropertyFund 2000-Present •DirectorofCityRealtyCo.,Ltd. 2009-2012 •DirectorofLibertasCo.,Ltd. 2010-Present •ChairmanofADPVTechnologyLimited


IOD Program : AttendedDAPProgramofIOD,Class74/2008. AttendedDirectorCertificationProgram(DCP),Class112/2009 MR. THANASAK CHANYAPOON

Position : IndependentDirectorandAuditCommittee

Education : Masterdegreeinlaws(LL.M.(Commerciallaws)),UniversityofCambridge,UK Masterdegreeinlaws(LL.M.),ChulalongkornUniversity,Thailand CertificateonAmericanandInternationalLaws,Dallas,USA Bachelordegreeinlaws(LL.B.(Hons)),ChulalongkornUniversity,Thailand

Work Experience : 2001-May2003 •ManagingAssociateofLinklaters(Thailand)Co.,Ltd,Bangkok May2003-2004 •SeniorAssociateofLawAllianceLimited 2004-October2006 •DirectorofLawAllianceLimited November2006-Present •ManagingDirectorofLawAllianceLimited 2008-Present •DirectorofKhaoSoonTungstenMiningCo.,Ltd, March2008-Present •DirectorofCal-CompElectronics(Thailand)Plc. 2009-Present •LecturerFacultyofLaw,ChulalongkornUniversityandFacultyofBusinessAdministration,

KasetsartUniversity March2010-Present •ExecutiveDirectorofHillcrestDevelopment(Samui)Co.,Ltd, October2011-Present •ExecutiveDirectorofHillcrestResort(Samui)Co.,Ltd, November2011-Present •IndependentDirectorandAuditCommitteeofCal-CompElectronics(Thailand)Plc.


IOD Program : AttendedDAPProgramofIOD,Class73/2008


GENERAL INFORMATION OF THE COMPANY

INDUSTRY/SECTOR : Technology/ElectronicComponents COMPANY : Cal-CompElectronics(Thailand)PublicCompanyLimited BUSINESS : Manufacturerforelectronicsproducts.Mainproductsarecomputerperipheraland

telecommunicationproducts. SECURITY CODE : -SETTicker:CCETTB -TWSETicker:9105TT HEAD OFFICE : 191/54,191/5718thFl.,CTITower,RachadapisekRoad,Klongtoey,Bangkok10110 TELEPHONE : 02-261-5033-37,02-661-9381-83 FAX : 02-661-9396 HOME PAGE : http://www.calcomp.co.th REGISTERED NUMBER : 0107543000023 AUTHORIZED CAPITAL : 4,277,556,192Baht PAID-UP CAPITAL : 4,077,556,192Baht PAR VALUE : 1Baht DIVIDEND POLICY : TheCompanyhasthedividendpolicytopaynotlessthan30%ofitsCompanyonly

netprofitofeachfiscalyearafterlegalreserve.ProvidedthattherateofdividendpaymentwillbesubjecttocashflowsandinvestmentplansoftheCompanyanditssubsidiaries,aswellasregulatoryrestrictionsandotherrequirements.

CCET LOCATION : (1) Samuthsakorn FactoryIN THAILAND 60Moo8,SethakijRoad,TambolKlongMaduea,AmpurKratoomBean,

Samuthsakorn,74110,Thailand : (2) Petchaburi Factory 138Moo4,Petchkasem,TambolSapang,AmpurKoaw-Yoi,Petchaburi,76140,

Thailand : (3) Branch at Nakhonratsima Province 44/4Moo9,TumbolSungnoen,AmphurSungnoen,Nakhonratsima30170,

Thailand : (4) Branch at Petchaburi province 91Moo4,TambolSapang,AmpurKoaw-Yoi,Petchaburi,76140,Thailand

GENERAL INFORMATION

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ANNUAL REPORT 2012

SHAREHOLDING STRUCTURE AND MANAGEMENT

LIST OF TOP 10 SHAREHOLDERS AS OF DECEMBER 31, 2012

% of Group of shareholders Nature of business No. of shares paid up capital

1. KinpoElectronics,Inc(1) Manufactureofelectronicproducts 1,691,871,970 41.49 2. FarEasternInternationalBank(2) DepositaryofTDR 766,938,653 18.81 3. KingboltInternational(Singapore) - 276,644,500 6.78 Pte.,Ltd.(1)

4. CompalElectronics,Inc(3) Manufactureofnotebook 220,396,300 5.40 5. ChaseNomineesLimited42 - 186,148,600 4.57 6. Mr.ChernKuan-Jan - 139,786,800 3.43 7. ThaiNVDRCompanyLimited - 57,835,614 1.42 8. RafflesNominees(Pte)Limited - 50,773,000 1.25 9. Mr.PrateepTangmaneetham - 25,485,000 0.62 10.Mrs.SupapornJanseareewittaya - 24,000,000 0.59 Total 3,439,880,437 84.36

Notes: (1) KinpoElectronics,Inc.andits100%ownedsubsidiary,KingboltInternational(Singapore)PteLtd.,holdtotally1,968,516,470sharesor48.27%.

(2) ThedepositaryofunderlyingshareofTaiwanDepositoryReceipts(TDR). (3) As of December 31, 2012, Compal Electronics has holding the common share through Raffles

Nominees(Pte)


CAPITAL STRUCTURE

SECURITIES OF THE COMPANY

1. ORDINARY SHARES Theregisteredandpaid-upcapitalasatDecember31,2012: Theregisteredcapital:Baht 4,277,556,192, comprising 4,277,556,192 ordinary shareswith the par value

pershareofBaht1. Thepaid-upcapital: Baht 4,077,556,192, comprising 4,077,556,192 ordinary shareswith the par value

pershareofBaht1.2. TAIWAN DEPOSITORY RECEIPTS (TDRs) AsofDecember31,2012, thereare766,938,653unitsofTaiwanDepositoryReceipts (TDRs)underlying766,938,653ordinarysharesor18.81%of totalpaidupcapital.TheTDRshavebeen listed inTaiwanStockExchangewiththecodeof9105.TT.DepositaryofTDRsfortheunderlyingsharesisFarEasternInternationalBank.Theredemptionrateis1TDRfor1ordinaryshare.Therighttoredeemcanbeusedeverydaywithoutexpiry.TDRsareentitledthesamerightsasordinarysharessuchastherightstoattendthemeeting,rightstovote,rightstoreceivethedividendandrighttosubscribetheRO,etc.AsofDecember31,2012,TDRholdershaveredeemedtheirTDRtobethecommonstockof6,096,000units.3. WARRANT CCET-WA TheCompanyissuedtheEmployeeStockOptionPlan(ESOP)byallottingthe200,000,000unitsof3yearswarrantsfortherightstobuyordinarysharestotheselectedemployeesoftheCompanyand/oritssubsidiariessinceApril2,2012withthecodeofCCET-WA.Thewarrantscanbeexercisedonthe10thofevery3monthsafterthefirstexercisedatethroughouttheTermoftheWarrantsfor3yearsandthefirstexercisedatewillbestartonApril2,2013.4. NVDR AsatDecember31,2012,thereare57,835,614unitsofNVDRsoftheCompany,equivalentto1.42%ofthepaid-upcapital,underlyingthesamesharesofordinaryshare.TheNVDRholdersareentitledtothesamerightsoftheunderlyingshares,butdonothavetherighttovoteintheshareholders’meetingexceptincaseofdelisting.TheordinaryshareswillbeusedastheunderlyingforissuanceofNVDRs.Consequently,thenumberofvotingshareswilldecrease.EventhenumberofNVDRsisquitesmall;theremaybesomechangesthattheCompanyisnotabletocontrol.

INVESTMENTS ThenamelistofthecompanythatCCEThasinvestedmorethan10%asthefollowing: 1. CAL-COMP ELECTRONICS (SUZHOU) COMPANY LIMITED Cal-CompElectronics(Suzhou)CompanyLimitedhasapaid-upcapitalofUSD27.18million,operatingasamanufacturerofelectronicsproducts.TheproductscovertelecommunicationsectoranditsoperationrunsinChina.Thissubsidiaryis100%ownedbytheCompany.TheregisteredaddressisNo.2288,JiangxingEastRoad,WujiangEconomicDevelopmentZone,Jiangsu,China.

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ANNUAL REPORT 2012

2. CAL-COMP OPTICAL ELECTRONICS (SUZHOU) COMPANY LIMITED Cal-CompOpticalElectronics(Suzhou)CompanyLimitedhasapaid-upcapitalofUSD41.30million,operating as amanufacturer of electronics. The products cover computers sector and its operation runs inChina. This subsidiary is 100%ownedby theCompany. The registered address isNo.2288, Jiangxing EastRoad,WujiangEconomicDevelopmentZone,Jiangsu,China. 3. CAL-COMP ELECTRONICS AND COMMUNICATION (SUZHOU) CO., LTD. Cal-CompElectronicsandCommunication (Suzhou)Co.,Ltd.haspaid-upcapitalofUSD35million,operating as a manufacturer of electronics products. The products cover computer peripheral andtelecommunicationsectoranditsoperationrunsinChina.Thissubsidiaryis100%ownedbytheCompany.TheregisteredaddressisWujiangExportProcessingZone,No.688,PangjinRoad,WujiangEconomicDevelopmentZone,JiangsuProvince,China. 4. CAL-COMP TECHNOLOGY (SUZHOU) CO., LTD. Cal-Comp Technology (Suzhou) Co., Ltd. has paid-up capital of USD 10 million, operating as amanufacturerofelectronicsproducts.TheproductscovercomputerperipheralsectoranditsoperationrunsinChina. This subsidiary is 100%ownedby theCompany. The registered address isGenwayFactory,No288,ShengpuRoad,ExportProcessingZoneB,SuzhouIndustrialPark,JiangsuProvince,China. 5. CAL-COMP ELECTRONICS AND COMMUNICATIONS CO., LTD. Cal-Comp Electronics and Communications Co., Ltd. has a paid-up capital of NTD 69,920,780,operatingasacentreforR&D,sales,marketing,procurement,financeandbusinessplanning.Thissubsidiaryisowned100%bytheCompany.Theregisteredaddressis3F.,No.99.Sec.5,NanjingE.Rd.,SongshanDistrict,TaipeiCity105Taiwan,R.O.C. 6. LOGISTAR INTERNATIONAL HOLDING COMPANY LIMITED LogistarInternationalHoldingCompanyLimitedhasapaid-upcapitalofUSD30,050,000,operatingasaholdingcompanytosupportinvestmentinforeigncountriesandtomakeoutofthefullpotentialforbusinessoperationandalsotobeadistributoroftheproducts.LogistarInternationalHoldingCompanyLimitedisowned100%bytheCompany.TheregisteredaddressissituatedatPalmGroveHouse,P.O.Box438,RoadTown,Tortola,BritishVirginIslands. 7. CAL COMP (MALAYSIA) SDN. BHD. Cal Comp (Malaysia) SDN. BHD. has a paid-up capital of MYR 28.04 million, operating as amanufacturerofelectronicsproducts.TheproductscovercomputerperipheralsectoranditsoperationrunsinMalaysia.Thissubsidiaryis100%ownedbytheCompany.TheregisteredaddressissituatedatLot711,JalanBatuTigaLama,SungaiRasa,Seksyen16,40200ShahAlam,SelagnorDarulEhsan,Malaysia. 8. CAL-COMP ELECTRONICS (USA) CO., LTD. Cal-CompElectronics(USA)Co.,Ltd.hasapaid-upcapitalofUSD19,818,637,operatingasaholdingcompany.Thissubsidiaryis100%ownedbytheCompany.Theregisteredaddressissituatedat9877WaplesStreet,SanDiego,USA.


�. CAL-COMP USA (SAN DIEGO), INC. Cal-CompUSA (SanDiego), Inc. (former name is SMSTechnologies, Inc.) has a paid-up capital ofUSD 858,608 operating as amanufacturer of printed circuit board assemblies and running the business inAmerica.TheCompanyowns100%ofCal-CompUSA(SanDiego),Inc.indirectlythroughCal-CompElectronics(USA)Co.,Ltd.Theregisteredaddressissituatedat9877,WaplesStreet,SanDiego,CA,USA. 10. CAL-COMP USA (INDIANA), INC. Cal-CompUSA (Indiana), Inc. (former name is Total Electronics LLC) has a paid-up capital of USD5,399,506operatingasamanufacturerofprintedcircuitboardassembliesandrunningthebusinessinAmerica.TheCompanyowns100%ofCal-CompUSA(Indiana),Inc.indirectlythroughCal-CompElectronics(USA)Co.,Ltd.Theregisteredaddressissituatedat1TechnologyWay,Logansport,IN,USA. 11. CAL-COMP PRECISION (SINGAPORE) LTD. Cal-CompPrecision(Singapore)Ltd.hasapaid-upcapitalofSGD20.81million,operatingasmouldandplastic injectionandrunning thebusiness inSingapore.Thissubsidiary is100%ownedby theCompany.Theregisteredaddressissituatedat19ChangiSouthStreet1,ChangiSouthIndustrialEstateSingapore486779. 12. CAL-COMP PRECISION (THAILAND) LIMITED Cal-CompPrecision(Thailand)Limitedhasapaid-upcapitalofBaht156.83million,operatingasmouldandplastic injectionandrunningthebusiness inThailand.TheCompanyowns100%ofCal-CompPrecision(Thailand)LimitedindirectlythroughCal-CompPrecision(Singapore)Ltd.Theregisteredaddressissituatedat130Moo1TombonBanklenAmbhorBankpa-inPranakhonsirayudthayaProvince13160. 13. AVAPLAS PRECISION PLASTICS (SHANGHAI) CO., LTD. Avaplas PrecisionPlastics (Shanghai) Co., Ltd. has a paid-up capital of USD 983,100, operating asmouldandplasticinjectionandrunningthebusinessinChina.TheCompanyowns100%ofAvaplasPrecisionPlastics(Shanghai)Co.,Ltd. indirectlythroughCal-CompPrecision(Singapore)Ltd.TheregisteredaddressissituatedatNo.273,#57DeBaoRoad,WaiGaoQiaoFreeTradeZone,Shanghai200131,P.R.China. 14. CAL-COMP PRECISION (MALAYSIA) SDN. BHD Cal-CompPrecision (Malaysia) Sdn. Bhd. has a paid-up capital ofMYR 11.97million, operating asmould and plastic injection and running the business in Malaysia. The Company owns 100% of Cal-CompPrecision(Malaysia)Sdn.BhdindirectlythroughCal-CompPrecision(Singapore)Ltd.TheregisteredaddressissituatedatPTD37441,JalanPerindustrian3,KawasanPerindustrianFasa2,81400Senai,Johor,Malaysia. 15. CAL-COMP PRECISION (DONGGUAN) CO., LTD. Cal-CompPrecision(Dongguan)Co.,Ltd.hasapaid-upcapitalofUSD5,399,980,operatingasmouldand plastic injection and running the business in China, The Company owns 100% of Cal-Comp Precision(Dongguan)Co.,LtdindirectlythroughCal-CompPrecision(Singapore)Ltd.Theregisteredaddressissituatedat No. 35 Bldg A-1 Xingfa South Road, Liwu, Wusha District, Changan Town, Dongguan City, Guangdong523860,China.

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ANNUAL REPORT 2012

16. CAL-COMP PRECISION (WUJIANG) CO., LTD. Cal-CompPrecision(Wujiang)Co.,Ltd.hasapaid-upcapitalofUSD5million,operatingasmouldandplasticinjectionandrunningthebusinessinChina,TheCompanyowns100%ofCal-CompPrecision(Wujiang)Co., Ltd. indirectly throughCal-CompPrecision (Singapore) Ltd. The registered address is situated at 2288,JiangxingEastRoad,WujiangEconomicDevelopmentZone,Jiangsu,China. 17. CAL-COMP INDÚSTRIA E COMÉRCIO DE ELETRÔNICOS E INFORMÁTICA LTDA

CAL-COMPINDÚSTRIAECOMÉRCIODEELETRÔNICOSEINFORMÁTICALTDAhasapaid-upcapitalof R$ 15,812,965, operating as electronic manufacturing and running the business in Brazil. The Companyowns100%ofthisCompany.TheregisteredaddressissituatedatRuaAraçai,143,Flores,CEP.:69048-810,onthecityofManaus,Amazonas,Brazil. 18. CAL-COMP ELECTRONICS DE MEXICO CO. SA DE CV Cal-CompElectronicsdeMexicoCo.SAdeCVhasapaid-upcapitalofUSD5millionoperatingaselectronicmanufacturingandrunningthebusinessinMexico.TheCompanyowns100%ofthisCompany.Theregisteredaddress is situatedatDeLosEncinos1080SinNumberPaque IndustrialVillaFloridaTamaulipas88730. 1�. NEW KINPO GROUP TECHNOLOGY (PHILIPPINES), INC. NewKinpoGroupTechnology(Philippines),Inc.hasapaid-upcapitalofPHP212,712,000operatingaselectronicmanufacturingandrunningthebusinessinPhilippines.TheCompanyowns100%ofthisCompany.The registered address is situated atNo. 2River ValleyRoad (LotC3-13)Carmelray Industrial Park IIBrgy.Punta,CalambaCity,Laguna4027,Philippines. 20. WISE SIGMA INTERNATIONAL HOLDING COMPANY LIMITED WiseSigmaInternationalHoldingCompanyLimitedhasapaid-upcapitalofUSD5million,operatingas a holding company. The Company owns 44.55% of Wise Sigma International Holding Company Limitedindirectly through Logistar International Holding Company Limited. The registered address is situated atBeaufortHouse,P.O.Box438,RoadTown,Tortola,BritishVirginIslands. 21. A-TEN TECHNOLOGY CO., LTD. A-TenTechnologyCo.,Ltd.haspaidupcapitalofNTD30million.Themainbusinessactivitiesarearesearchhouseanddistributionfortelecommunicationproductssuchasmobilephones,pagers.TheCompanyowns34.33%ofA-TenTechnologyCo.,LtdindirectlythroughLogistarInternationalHoldingCompanyLimited.Theregisteredaddressissituatedat4F.,No.442,Sec.2,JhongshanRd.,JhongheDist,NewTaipeiCity235,Taiwan,R.O.C. 22. OPTOSEM TECHNOLOGIES (S) PTE. LTD. OptosemTechnologies(S)Pte.Ltd.haspaidupcapitalofSGD400,000,operatingasamanufactureofdies,moulds,toolsjigsandfixturesandmanufactureofplasticprecisionengineeringpartsandrunningthebusinessinSingapore.TheCompanyowns30%ofOptosemTechnologies(S)Pte.Ltd.indirectlythroughCal-CompPrecision(Singapore)Ltd.Theregisteredaddressissituatedat994BendemeerRoad#01-04Singapore339943.


23. DAVISCOMMS (S) PTE LTD. Daviscomms(S)PteLtd.haspaidupcapitalofSGD3,084,109,operatingasadesign,manufacturinganddistributionof telecommunicationrelatedproductsandrunningthebusiness inSingapore.TheCompanyowns20%ofDaviscomms (S)PteLtd. indirectly throughCal-CompPrecision (Singapore)Ltd.TheregisteredaddressissituatedatBlock70,UbiCrescent,UbiTechpark,#01-07,Singapore408570. 24. METAL COMPONENT ENGINEERING LIMITED (“MCE”) MetalComponentEngineeringLimitedislistedinSingaporeStockExchange(SGX-ST)hasapaidupcapitalSGD360,000,000andrunningbusiness inSingapore.TheCompanyhas invested inMCE inorder toimprovemanagementefficiencyandverticalintegration.TheCompanyowns16.67%ofpaidupcapitalofMCEandtheregisteredaddressissituatedat10,AngMoKioStreet65,Techpoint,#04-02,Singapore569059. 25. KINPO GROUP MANAGEMENT SERVICE CO., LTD. KinpoGroupManagementServiceCo., Ltd. has apaid-upcapital ofNTD8million, operating as aconsultantcompany.TheCompanyowns12.50%ofpaidupcapital indirectly throughCal-CompElectronicsandCommunicationCo., Ltd. and the registered address is situated at 10F.,No.99. Sec.5,Nanjing E. Rd.,SongshanDistrict,TaipeiCity105Taiwan,R.O.C. 26. INX JAPAN INTERNATIONAL, INC. InxJapanInternational,Inc.hasapaid-upcapitalof¥90,000,001,operatingasadistributorofcomputersproducts andmanagement of copyrights for productsdesignedunder the name “Inx Japan”. TheCompanyowned11.11%andtheregisteredaddress issituatedat2Fl.,AkasakaLongBeachBldg.,Akasaka3-21-20,Minato-Ku,Tokyo,Japan.

1�

ANNUAL REPORT 2012

AS OF 31 DECEMBER 2012

THE GROUP STRUCTURE

100% Cal-Comp USA (San Diego),

Inc.

100%

CAL-COMP ELECTRONICS

(SUZHOU) CO., LTD.

100%

CAL-COMP OPTICAL

ELECTRONICS (SUZHOU) CO.,LTD.

100%

CAL-COMP TECHNOLOGY (SUZHOU) CO., LTD.

100%


AND COMMUNICATION

(SUZHOU) CO., LTD.

100%

LOGISTAR INTERNATIONAL

HOLDING CO., LTD.

100%

CAL COMP MALAYSIA SDN. BHD.

100%


AND COMMUNICATION

CO., LTD.

0.37%

ZAKANG INC.

100%


(USA) CO., LTD.

100%

CAL-COMP PRECISION

(SINGAPORE) CO., LTD.

100%

NEW KINPO GROUP

TECKNOLOGY (PHILIPPINES)

INC.

100%

CAL-COMP INDÚSTRIA E COMÉRCIO DE ELETRÔNICOS

E INFORMÁTICA LTDA

100%

CAL-COMP ELECTRONICS DE MEXICO

CO. SA DE CV

16.67%

METAL COMPONENT ENGINEERING

LIMITED

11.11%

INX JAPAN INTERNATIONAL

INC.

1.90%

POWER DIGITAL

COMMUNICATION CO., LTD.

CAL – COMP ELECTRONICS (THAILAND) PUBLIC COMPANY LIMITED

30% Optosem Technologies (S)

Pte. Ltd.

100% Cal-Comp Precision (Dongguan) Co., Ltd.

100% Cal-Comp Precision (Wujiang) Co., Ltd.

100% Cal-Comp Precision (Thailand) Co., Ltd.

100% Cal-Comp Precision (Malaysia) Sdn. Bhd.

100% Avaplas Precision Plastic

(Shanghai) Co., Ltd.

20% Daviscomms (S) Pte.

44.55% Wise Sigma International

Holding Co., Ltd.

34.33% A-Ten Technology

Co., Ltd.

100% Cal-Comp USA (Indiana),

Inc.

12.50% Kinpo Group Management

Service Co., Ltd.


INVESTMENT POLICY AND BENEFITS DERIVED FROM INVESTMENT IN ANY ASSOCIATED COMPANY AND OTHER COMPANIES.

Inanattempttomakeinvestmentsinanysubsidiarycompany,associatedcompanyandothercompanies,the Company will particularly take into account the possibility of generating proceeds and benefits to beobtainedbytheCompany.ThecompanyhasestablishedmanufacturingfacilitiesinChinasince2003aswellasestablishedmanufacturingfacilitiesinMalaysiaandacquirednewbusinessinSingapore,Malaysia,USA,Brazil,MexicoandPhilippinesin2010-2012toleveragethelowcostproductioncankeeptheCompanycompetitiveand be able to address customer’s need as well as the improving of vertical integration. As a result, theCompanyhasexpandeditscustomerbaseandoperationscaletoaworldclassEMS. OTHER REFERENCE PARTIES

SHARES AND WARRANTS REGISTRAR : ThailandSecuritiesDepositoryCo.,Ltd. 62TheStockExchangeofThailandBuilding RachadapisekRoad,Klongtoey,Bangkok10110 Tel:(662)229-2800 Fax:(662)359-1259

TAIWAN DEPOSITORY RECEIPTS : FarEasternInternationalBank (TDRS) DEPOSITARY 5F,No.1,HsiangYangRd.,Taipei,Taiwan,R.O.C. Tel:886-2-2312-3636 Fax:886-2-2388-8278

AUDITOR :Ms.RungnapaLertsuwankul CertifiedPublicAccountant(Thailand)No.3516 Ernst&YoungOfficeLimited 193/136-137,LakeRajadaOfficeComplex, RachadapisekRoad,Klongtoey,Bangkok10110 Tel:(662)264-0777 Fax:(662)264-0789-90

21

ANNUAL REPORT 2012

NATURE OF BUSINESS OPERATION

NATURE OF BUSINESS OPERATION Cal-CompElectronics(Thailand)PublicCompanyLimited(“TheCompany”)wasfoundwithinitialcapitalofBaht 125 million on 4 December 1989 in order to embark on electronics manufacturing services (EMS)business.Atpresent, theCompanyhas registeredcapitalofBaht4,277,556,192andpaid-upcapitalofBaht4,077,556,192. TheCompanyisinElectronicsManufacturingServices(EMS)business,producingelectronicsproductsformajorbrandsworldwide;forinstance,WesternDigital,Seagate,Hitachi,AdvanceDigitalBroadcast,Technicolor,Pace, Hewlett Packard, Panasonic, Nikon and else. The Company’s products can mainly categorize into 2groupsasfollows: • Computerperipheralssuchasink-jetprinters,laserprinters,multi-functionprinters,dot-matrixprinters,

largeformatprinter,mainboard,externalharddiskdriveandPCBAforharddiskdrive. • TelecommunicationproductssuchasSetTopBoxandBluetoothheadsets. As of 31 December 2012, the Company has employees 16,937 globally, 5,547 in China, 6,994 inThailand,1,068inTaiwan,678inMalaysia,1,345inBrazil,890inMexico,258inUSA,61inSingaporeand96inPhilippines. The Company was awarded investment tax privileges type 5.4, 5.5, 5.6 and 5.7 for manufacturingelectronics products and electronics components from Board of Investment (BOI) in which provided 8 taxincentive projects. Beside, Cal-Comp Precision (Thailand) Limitedwas awarded investment tax privileges forPlasticcomponentsofelectronicsproductsfromBOIinwhichprovided3taxincentiveprojectaswell.

INCOME STRUCTURE 2010 2011 2012

Divisions Million Baht % Million Baht % Million Baht %

ComputerPeripheral 101,195 80.43 114,013 85.82 113,480 80.05TelecommunicationProducts 24,404 19.40 17,966 13.52 26,713 18.85Totalsales 125,599 99.83 131,979 99.34 140,193 98.90Otherrevenue 218 0.17 872 0.66 1,562 1.10Totalrevenue 125,817 100.00 132,851 100.00 141,755 100.00

PRODUCTION VOLUME (Unit:ThousandUnits)

Description 2010 2011 2012

Number % Number % Number %

Productionvolume - ComputerPeripheral 223,803 93.45 254,688 95.13 314,315 94.60 - TelecommunicationProducts 15,688 6.55 13,042 4.87 17,931 5.40Total 239,491 100.00 267,730 100.00 332,246 100.00


TheproductionoftheCompanyanditssubsidiariesutilizeslaborfor1roundperday(8hoursperround).Overall, the Company utilizes 86%, 90% and 95% of the full capacity for year 2010, 2011 and 2012,respectively. InordertoimprovetheCompany’smanufacturingefficiencywhilemaintainitsexistingcompetitiveness,theCompany developed a series of system to monitoring the operation routine on daily basis. Four systemsincludingproductiondirectcontrolsystem,manufactureontimesystems,B2Bprocurementsystem,anddigitalcenter server systemhave formed a fine network to provide theCompany and its customersmost updatedinformationinordertotrackandanalyzepotentialissues.

DETAILS OF PURCHASING OF LOCAL AND FOREIGN RAW MATERIALS DURING 2010-2012 TheCompanyhaspurchasedrawmaterialsthroughlocalandoverseassuppliers.BelowistheCompany’sconsolidatedpurchaseamountinmillionbahtduring2010-2012

Order 2010 2011 2012

Million Baht % Million Baht % Million Baht %

Domesticrawmaterials 22,296.39 21.43 24,515.72 20.84 15,048.82 12.94Importedrawmaterials 81,770.00 78.57 93,134.58 79.16 101,275.08 87.06Total 104,066.39 100.00 117,650.30 100.00 116,323.90 100.00

TYPES AND SOURCES OF ESSENTIAL MATERIALS MATERIALS FOR INTERNAL COMPONENTS

Material Description Source of supply

RadioComponents Antenna,BalunandBandpassfilter, Taiwan,KoreaandChina Transceiver,Tuner,Poweramplifier, Resonator,Crystal. ChipICseries MCP,DSP,Audioamplifier,Memory, Singapore,Japan,KoreaandtheU.S. LCMdriver,Powermanagement,MediaIC.KeyComponent CPU,HD,Pens,LCM,Printerheads, Thailand,Taiwan,China,Singapore Modulator andJapanOtherComponents Capacitor,Beadinductor,VibrationMotor, Thailand,Taiwan,China,Singapore, Speaker,Receiver,Microphone, Japan,andtheU.S. MetalDome,Switch,Connector,FPC,LED, Discrete,PCB,Res

23

ANNUAL REPORT 2012

MATERIALS FOR EXTERNAL COMPONENTS

Materialsforexternalcomponentsareprimarilythecaseoftheproductsandotheroutsidecomponentsasfollows:

Material Description Source of supply

AdapterandCables Electriccableandadaptors Thailand,Malaysia,ChinaCase Plasticsandplasticcomponents Thailand,Singapore,MalaysiaandChinaPackaging Paperbox,Polyfoam,Plasticbags, PlastictapesandTag. ThailandandChina

MATERIAL SUPPLIERS

Key components will be procured according to customer’s specification. The major shareholders andaffiliatesmay be alsoCCET’s customers aswell. TheCompany implements random sampling to investigateeach raw material types and uses Vendor Quality Assurance system to certify the qualified suppliers. TheCompanywillonlyplaceordertothequalifiedsuppliers. Moreover,thereare3rawmaterialsuppliersestablishedtheirmanufacturingfacilitiesinsidetheCompany’sproductions zone which is called Value-Chain Partnership. This partnership allows CCET to control rawmaterialsquality in real timeand to reduce inventory spacesand to lower transportationcosts. Those threesuppliers do not hold shares of the Company, nor do them related to management of the Company. Theaforementionedsuppliersareasfollows:

Suppliers Raw material

1.EverJetCo.,Ltd. Plasticcomponents 2.JetIndustries(Thailand)Co.,Ltd. Plasticcomponents 3.MCT(Thailand)Co.,Ltd. Metalsheet

PURCHASING POLICY

TheCompany’spurchasingpolicyisbaseduponthecomparisonofpricesofrawmaterialsquotedbyeachsupplier,andpunctualdeliveryofthesuppliertoeachshipmentandtakingintoaccountthemaximumbenefitsto be obtained by the Company. In the purchasing process, the sales department and the productiondepartmentwillcooperateinplanningthepurchaseofrawmaterialssoastoascertainthedemandsforeachperiodandmaintaintheinventoryatanappropriatelevelfromtimetotime.

MATERIAL CHANGES IN 2012

• OnApril2,2012,theCompanyhasallottedtheWarrantstoPurchaseNewOrdinarySharesCal-CompElectronics (Thailand) PublicCompany Limited 2011 (CCET-WA) in the amount of 200,000,000 unitscontributedemployeesoftheCompanyand/oritssubsidiaries.Theofferingpriceis0Baht,termis3yearsafterofferingdate.Theexercisepriceis2.80Baht/shareandtheexerciseratio1ordinarysharefor1warrantandthiswarrantisnon-listedwarrant.


• The Company has established a subsidiary in Philippines named New Kinpo Group Technology(Philippines), Inc. with the investment amount of PHP 212,712,000 in order to expand overseasoperationbaseandmeetcustomer’sdemand.

25

ANNUAL REPORT 2012

INDUSTRY AND MARKET COMPETITION

EMS INDUSTRY OVERVIEW TheglobalEMSmarketrevenueisexpectedtoupby4%atUSD217Billionin2012YoYaccordingtotheIHS research. For years, cost reduction has been among the top selling points for the outsourcedmanufacturing industry. Nonetheless, while Cost-cutting is still an essential factor in the EMS industry,improving the velocity and responsivenessof thesupplychainarealsokeyelementof success.Meanwhile,supplychainshavebeenextendedaroundtheworldtoalargerdegreethanwhat’sbeenseeninthepast;forinstance, outsourcedmanufactures shall be able to expand their supply chains to aglobal level in order toreducedelivertimetotheendusermarket.Inotherword,theEMSprovidershaveevolvedfromofferingpointtopointservicetoprovidingcompletesupportservicestobroadenthecorevalueamongthecompetitors. Theglobalmarketforelectronicscontractmanufacturing(ECM)wasvaluedatUSD410billionin2011,andisprojectedtoreachUSD435billionin2013andUSD670billionin2018,afive-yearcompoundannualgrowthrate (CAGR)of 9% from2013-2018.Computers and telecommunicationsareprojected to account for nearlyUSD243billionin2012andUSD250billionin2013.ThemarketisexpectedtoreachUSD389billionby2018,acompoundannualgrowth rate (CAGR)of9.3%.Theconsumerand industrialsegment isprojected to totalUSD128billionin2012andUSD132billionin2013.ThissegmentisexpectedtoreachnearlyUSD203billionin2018,aCAGRof8.9%.OtherapplicationsshouldaccountfornearlyUSD51billionin2012andUSD53.4billionin2013.Thissegmentisexpectedtoreachnearly$78billion2018,aCAGRof7.9%.

WORLDWIDE EMS & ODM REVENUE FORECAST (UNIT: BILLIONS OF US DOLLARS)

EMS ODM

Source:HISiSuppliResearch,January2012

STB INDUSTRY OVERVIEW TheSetTopBoxmarketwill remainascorecomponentof thepay-TV industry’sservicepropositionasoperatorsutilizetheboxtoexploitexistingservicesandlookbeyondthedeliveryofvideotoimprovesubscribergrowthandretention. Furthermore,newgenerationofSetTopBoxlabeledasmediagatewaysorsmartboxesarelaunchinginthetelecommarketwhichofferingnewlyfeaturessuchastranscoding,wirelessrouting,multi-platformcontentmanagement,mediadistributionandmulti-roomdelivery.Overall,thegrowthopportunitiesoftheIndustryshallstillexpected;AsiaPacificisexpectedtorepresent45%ofglobalshipmentsin2012andshallseecontinuousgrowththrough2013.Ontheotherhand,anexpectedgrowthtrendinsmallerregionsincludingEasternEuropeandLatinAmericafrom16%to18%and4%to6%respectively.InNorthAmerica,thesaturatedpay-TVmarketcontinuestolosesubscribersquarteronquarter,negativelyaffectingdemandforSetTopBoxindustrywhich

250

200

150

100

50

0 2010 2011 2012


resulting a 4% fall over the forecast period. Nevertheless, the sales revenue however will be sustained asoperatorsmovetomoreadvancedsettopboxesallowingfortheroll-outofmoresophisticatedservicesthatwillattractnewrevenuestreamsfromsubscribers.

FORECAST OF INSTALLED BASE OF SET-TOP BOXES AND ACTIVE MULTISCREEN DEVICES ACCESSING PAY-TV SERVICES

Source:HISScreenDigest,July2012

GLOBAL SET-TOP BOX UNIT SHIPMENT SHARE FORECAST (UNIT: PERCENTAGE)

Source:InfoneticsResearch,SetBoxBoxesandSubscribersQuarterlyMarketSize,ShareandForecast,March2012

HARD-DISK-DRIVE INDUSTRY OVERVIEW “Despite concerns regarding the global and regional economies, end users continue to invest in storage

infrastructures. Helping to drive the worldwide market in Q2 was the double-digit growth in the emerging

regions and strong demand for mid-range storage.”saidLizConner,seniorresearchanalyst,StorageSystems. The HDD shipment has recovered from the Thailand flood disaster occurred in yearend 2011 with angrowth of 8% in Q2/2012 and is expected in continuous growth driven by nonstop upgrading networktechnology. Furthermore, Thailand’s E&E industry stands very high among the competitors and is stillconsidered theworld’s largestmanufacturerofharddiskdrives (HDDs).TheElectrical&Electronics industryhascontributesbetween25and30%ofThailand’sannualexportrevenueforallindustriesandisprojectedtopassUSD54billioninexportsfor2012.Amountofall,theelectronicssectoraccountsfor60%ofthelocalE&Eindustry’soutboundshipmentsincludingHDDproducts,integratedcircuits(ICs),semiconductors,compressorsandequipmentformobilephones.

400,000

300,000

200,000

100,000

0 2010 2011 2012 2013 2014 2015

STBinstalledBaseofMultiscreenOperater MultiscreenDevices

100

75

50

25

0 2012 2016

CableSTBs

SatelliteSTBs

IPSTBs

HybridSTBs

27

ANNUAL REPORT 2012

Inspiteofall,itisbelievedthattheHDDandODDmarketwillcontinuetogrowdrivenbynewprocessorsforserverandstoragecoming to themarket,continuescorporatePCrefreshes,andcontinuedadoption incloudstorage.Furthermore,itisalsobelievedthatthestorageindustrywillbecomemoreefficientafterexperiencedalltheturmoilintheeconomydownturn,earthquake,flooding,andevaluationoftechnologytransformation.

WORLDWIDE HDD SHIPMENT FORECAST AND MARKET SHARE (UNIT: IN MILLIONS OF UNIT)

Company 2Q12 Market Share 1Q12 Q/Q Growth of 2Q12

WD 71.0 45% 63.8 11.3% Seagate 65.9 42% 60.7 8.6% Toshiba 20.1 13% 20.6 -2.4% Total 157.0 100% 145.1 8.2%

Source:HISiSuppliResearch,August2012

WORLDWIDE HDD SHIPMENT FORECAST (UNIT: IN MILLIONS OF UNIT)

Source:HISiSuppliResearch,September2012

PRINTER INDUSTRY OVERVIEW Theworldprintingmachineryandsuppliesindustryisexpectedtoexceed$21billionby2015,accordingtothe research of Global Industry Analysts. In fact, themarket is driven by demand for digital color presses,specialtyprintersand inkjetprinters. Inaddition, thechanging landscapeofdigital technology,newproductsandnewinnovationalsostimulatetheprinterindustry. For instance,thedemandfor inkjetprintersandPC-freeprinterswhichtakeflashmemorycardsusedindigitalcamerascontinuestoriseasmoreindividualsareavailablefordigitalproducts.Inaddition,thegrowthofLarge Format Printermarket, particularly in the high speed segment, has been driven by consumer’s rapidchanging preference which causes companies the needs to continuously performing advertisement andpromotionalactivitiesinordertoremaintheirbrandvisibilityandachievecompetitiveedgeovertheirrivals.Ontheotherhand,basedontheGartnerresearch,thegrowthofMultifunctionFunctionPrintermarketgrowthhasalsobeendrivenbythebanking,financialservicesandinsurance,educationandgovernmentsectors.

580

560

540

520

500

480

460 2011 2012 2013 2014 2015 2016


WORLDWIDE HARDCOPY PERIPHERALS MARKET SHARE AND YEAR-OVER-YEAR GROWTH, SECOND QUARTER 2012

Vendors 2Q12 Unit 2Q12 Market 2Q11 Unit 2Q11 Market 2Q12/2Q11 Shipments Share Shipments Share Growth

1.HP 10,500,055 39.6% 12,020,025 41.5% -12.7% 2.Canon 5,667,915 21.4% 5,637,249 19.5% 0.5% 3.Epson 3,497,137 13.2% 3,541,286 12.2% -1.3% 4.Brother 1,722,078 6.5% 1,617,180 5.6% 6.5% 5.Samsung 1,342,379 5.0% 1,720,311 6.0% -22.0% Others 3,786,797 14.3% 4,407,669 15.2% -14.1% Total 26,516,361 100.0% 28,943,720 100% -8.4%

Source:IDCWorldwideQuarterlyHardcopyPeripheralsTracker,August2012

PLASTIC MOLDING INDUSTRY Theglobalmarketforinjectionmoldedplasticswasestimatedtobecloseto79thousandkilotonsin2010which isexpectedtoreach116thousandkilotonsbytheendof2018atgrowthof4.9%CAGRfrom2013-2018.Andintermsofrevenues,themarketwasexpectedtoreachamarketvalueofUSD252billionby2018atgrowthof5.35%CAGRfrom2013to2018. Overall,theglobalMoldedPlasticsmarketisonthethresholdofanimportantdynamicchangeconsideringthat Asia is rapidly emerging as the new center of balance in the globalmarket, given the strong levels ofindustrializationintheregion’smajoreconomieslikeChinaandIndia.Globally,AsiaPacificwasconsideredthelargestmarketforinjectionmoldedplasticsat37.2%marketsharein2011andfollowedbyNorthAmericaandEurope as second and third largest market respectively. And among of all, the application in packagingsegmentcapturing31.9%ofthemarketwhileconsumablesandelectronicssegmentconsistsecondlargestofmarket share at 30.1% for the same year. On the whole, consumables and electronics segment shall stillconsidered the fastest growing segment in the molded plastics industry with continued shifting of globalproductiontolowercostregioninAsiancountriesasprimarygrowthinthemediumtolong-termperiod.

2�

ANNUAL REPORT 2012

CCET is committed in developing a comprehensive riskmanagement system dedicated to the financialoperation,economiccondition,environment,andpersonnelcriteria.Risksmayaffectourbusinessoperationsare listedasbelow.However, thismaynotbeanexhaustive listandunforeseenrisksoutsideofourcontrolmayalsoimpactthebusinessoperations.

1. RISK ASSOCIATED WITH OPERATION 1.1 RISKS FROM OBSOLETE INVENTORY Theprocurementandproductionplansaremadebasedoncustomers’forecastandmaysubjecttochangeinordertocorrespondtothesaleconditions.CCEThasselectiveteamsandsystemstoconstantlymonitoringthedemandandinventorylevelinordertorespondcustomer’sneedefficiently. Meanwhile,theCompanyhasadoptedmake-to-ordermethodasthemanufacturingpolicy.ThesalesfromOEM customers contributed the majority of CCET’s sales and have limited risk of obsolete inventory. Theobsoleteratioisat1.44%asendofDecember2012whichincreasedfrom0.88%asatendofDecember2011.Ontheotherhand,ODMsalebeartheinventoryriskbutisatlesserdegreeofimpactsincetherevenuefromODMareminimal. Additionally,therawmaterialsandobsoleteinventoriesarere-valuedbytheauditorsfromtimetotimeandrecordedaccordingtoaccountingstandardundermarket-to-marketmethodinordertoreflectontimeupdatecondition.Further,theCompanywriteoffinventoriesthatnotbeusedfor2year. 1.2 RISKS FROM DEPENDENCY UPON MAJOR CUSTOMERS CCEThasestablishedlongtermrelationshipwithitscustomersbyprovidingqualitytechnicalserviceandworkingcloselyasa team tocontinuouslycreatecompetitiveadvantages forboth.Meanwhile, theCompanyhasalsocommittedinexpendingnewcustomerbasetomitigatethedependencyonparticularcustomer.Atthesame time, the Company has continued to develop new products as well broaden its market base byembarkingonnewindustryinordertoreducetheriskfromdependencyuponmajorcustomers. 1.3 RISKS FROM INFLUENCE OF MAJOR SHAREHOLDERS TOWARD MANAGEMENT POLICY Atthepresent,theboardofdirectoroftheCompanyhas4directors,nominatedbythemajorshareholderKinpoElectronics.,Inc.Nonetheless,Kinpocouldnotcontrolamajorityvotingattheshareholdermeetingthatrequiresatleast75%ofthemajorityvoteinregardsofthenominationofdirectorsorotherissuesthatrequiremajorityvote,exceptissuesthatthelaworthememorandumofassociationoftheCompanyhasspecified.Assuch,aminorityshareholderistobeabletoaccumulatevotes,tocheckandtobalancethevotingpowerofthemajorshareholder. 1.4 RISKS FROM CONCENTRATION OF PURCHASE AND RAW MATERIAL QUALITY TheCompanyhasestablishedprocurementcentretoensurestabilityofshippingscheduleamongqualifiedsupplierswhileminimizerisksborebyconcentrateonparticularsupplier.Meanwhile,theCompanyhassetupQualityAssuranceCentrestrictlyexaminesthequalitypriortheproductioninordertosecureCCET’sprofoundquality reputation. In addition,materials which consigned by the customers will also following the companyqualificationproceduretominimizetheburdenoccurredlaterinthemanufacturingprocess.

RISK FACTOR


1.5 RISK FROM THE ADEQUACY OF WORKING CAPITAL Working capital is one important factor needed to be considered for business operations and companyexpansion since itwill have direct impact on theCompany’s performance. TheCompany’sworking capitalscamefromoperation,short-termandlong-termloansfromfinancialinstitutions.AsofDecember31,2012,theCompanyhadtotalborrowedthroughshort-termloanofBaht17,367.52millionwhichaccountedof41.43%oftotal liabilities. As at December 31, 2012, the credit facilities and long-term loan of the Company and itssubsidiarieswithhavenotbeendrawndownamounted toUSD898millionorapproximatelyBaht27,565.55million.TheCompanybelievesthis issufficient tomeet futurebusinessgrowth.However, theworkingcapitalneededinthefuturewillbedependonthebusinessexpansionandM&Aopportunity.

2. RISK ASSOCIATED WITH ECONOMIC CONDITION AND FINANCIAL MARKET 2.1 RISKS FROM INTEREST RATE FLUCTUATION The Company exposure to potential risks in interest rate primarily through its cash at banks andborrowings.However,sincemostoftheCompany’sfinancialassetsandliabilitiesbearfloatinginterestratesorfixedinterestrateswhichareclosetothemarketrate,thereforetheinterestrateriskisexpectedtobeminimal.Currentinterestrateisat1.0%to3.9%.Meanwhile,theCompanyhadbothlongtermandshorttermloanfromfinancialinstitutionstosecurecompany’sregularoperation. 2.2 RISKS FROM FOREIGN EXCHANGE VOLATILITY TheCompanyexposuretoforeigncurrencyrisksmainlyarisefromtradingtransactionsandborrowingsthataredenominated in foreigncurrencies.Consequently, the fluctuation inUSdollarmayadverselydistress thefinancialperformance.Nevertheless,theCompanyhadmanagedtherisksbyusingnaturalhedgemethodwhenitconsidersappropriatetominimizepossibleloss. CCETiscontinuouslymonitoringtheglobaleconomicandmarketmovementswithregardstotheexchangerateswiththeaimofpreventingpotentialloss.

3. RISK FROM NATURAL DISASTER The Company sees potential risk and impact in relate to nature disaster incidents, and has set uppreventionplanaswelltheemployeeemergencytrainingonaregularbasis.Inadditiontothat,theCompany’sglobalmanufacturefacilitiesarewellplannedandbeabletoprovideimmediatesupporttotheaffectedfacilitywhichnotonlycountingforcontinuouslycustomersupportbutalsobeabletominimizepotentialbusinesslossduetonaturaldisasters.

31

ANNUAL REPORT 2012

EXECUTIVE COMMITTEE TheCompanyhastwoexecutivecommittees,theBoardofDirectorsandtheAuditCommittee.

BOARD OF DIRECTORS Asof31stDecember2012,theCompany’sBoardofDirectorsconsistsofthefollowingmembers. 1 Mr.Hsu,Sheng-Hsiung Chairman 2 Mr.Shen,Shyh-Yong ViceChairman 3 Mr.KhongsitChoukitcharoen ManagingDirector 4 Mr.Ko,Charng-Chyi Director 5 Mr.Hsu,Sheng-Chieh Director 6 Mr.Chang,Zuei-Wei Director 7 Mr.AlanKam IndependentDirectorandChairmanofAuditCommittee 8 Mr.WilliamHangManChao IndependentDirectorandAuditCommittee 9 Mr.ThanasakChanyapoon IndependentDirectorandAuditCommitteeRemark: 1. Mrs.SunaddaJaypongistheCorporateSecretary 2. Mr.AlanKamandMr.WilliamHangManChaohavetheknowledgetoreviewthefinancialstatement.

AUTHORIZED DIRECTORS The authorized directors are Mr. Hsu, Sheng-Hsiung and Mr. Shen, Shyh-Yong and Mr. KhongsitChoukitcharoen.EitheroneofsignatureofauthorizeddirectorsisauthorizedtosignonbehalfoftheCompanywiththeCompany’ssealaffixed.

SCOPE OF AUTHORITIES AND DUTIES OF THE BOARD OF DIRECTORS 1. DUTIES OF THE BOARD OF DIRECTORS TheBoardofDirectorshasapplieditsknowledge,abilityandexperiencetocarefullyperformitsduties

intheCompany’s interests inaccordancewiththeCompany’sobjectives,regulationsandresolutionsmade toshareholderswith thestrongcommitment toapracticeofhonest, straight-forwardnessandcarefulness toward a maximum extent of effort to maintain both the Company and shareholders’benefits.

2. DUTIES ON THE ACCOUNTABILITY TO SHAREHOLDERS TheBoardofDirectorshastohaveconsistentlyaccountabilitytoshareholders,protecttheinterestsof

shareholdersandtransparentlydiscloseclearinformationtoinvestors. 3. REVIEW AND APPROVAL OF FINANCIAL REPORTS AND CHANGES IN ACCOUNTING POLICY TheBoardofDirectorsisresponsibleforapprovingthefinancialreportsthathavebeenauditedand/or

reviewedbytheauditorandtheAuditCommittee,andanychangesinaccountingpolicy. 4. REVIEW AND APPROVAL ON APPROPRIATENESS OF BUSINESS POLICIES TheBoardofDirectorsisresponsibleforreviewingandapprovinganyappropriatepolicy,budgetand

directionoftheCompany’sbusinessoperationandplansasproposedbytheManagement.

MANAGEMENT STRUCTURE


5. SUPERVISION OF MANAGEMENT TheBoardofDirectorsisresponsibleforsupervisingtheManagementtoefficientlyperformintheline

with the policy set and for informing the Management in preparing any material reports on theCompany’sbusinessoperationandotherrelatedparty transactions inaccordancewiththerulesandregulationsoftheOfficeofSecurityandExchangeCommissionandtheStockExchangeofThailand.

In cases of necessity, the Board of Directors will set third parties to give professional or technicaladviceonanymatter,whichmaymateriallyaffecttheCompany’sbusiness.

6. PURSUANCE OF INTERNAL CONTROL AND AUDIT SYSTEM TheBoardofDirectorshastosetupandmaintaineffectiveinternalcontrolsystemdesignedtoprovide

the Management with reasonable assurance that transactions are recorded properly and accuratelyenough to ensure that the assets are safeguarded and that material frauds and malpractice areprecluded.TheBoardofDirectorsalsoappointedtheAuditCommitteeandthe internalauditunit toexaminetheadequacyandthesuitabilityoftheinternalcontrolsystemoftheCompany.

7. INDEPENDENT PERFORMANCE OF NON-MANAGEMENT DIRECTORS Theindependentdirectorshavetheirowndiscretiontomakedecisiononanystrategy,administration,

appointmentofdirectorsandanyothermaterialmatteraffectingthebenefitsoftheCompany,includingthe sufficient and appropriate access to information technology concerning financial and businessmattersontheinterestoftheCompany.

8. ETHICS AND ETIQUETTE TheBoardofDirectorsprepares a compliancemanual in relation to theethics andetiquetteof the

ManagementandstaffasguidelinesforgoodandproperpracticewithintheCompany. AllaforementionedresponsibilitiescanbeenforcedandapprovedbytheBoardofDirectorsexceptfor

thefollowingitems,whichrequireshareholders’approval. - Incompliancewiththelaw,requiringashareholders’resolution - ConnectedtransactionsassetoutinSECorbylaws Thetransactionsinwhichanydirectorhasamaterialinterest,directlyorindirectly,orhasaconflictof

interest,thedirector(s)hasnovotingrightonsuchtransactions.

AUDIT COMMITTEE AND INDEPENDENT DIRECTOR Definitionof“AuditCommittee”asthefollowing; 1. Holdingnotmorethan1%ofthesharesentitledtovoteoftheCompany,subsidiarycompaniesandits

affiliatedcompaniesorconflictingjuristicpersons,sharesheldbyrelatedpersonstobeincludedinthecalculation.

2. Notbeingadirectorwhotakepartinthemanagement;anemployee;astaff;anadvisorwhoreceivesaregularsalaryandisnotinapositiontoexertcontrolovertheCompany,itssubsidiariesorfellow-subsidiariesoronanyentitylikelytogiverisetoaconflictofinterest(atpresent,andinthetwoyearspriortohisappointment)

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ANNUAL REPORT 2012

3. DoesnothavebusinessdealingswiththeCompany: 3.1 IsnotanauditoroftheCompany 3.2 Does not provide other professional services to the Company such as legal or financial

consultancyorappraisalworthmorethanBaht2millionperyear. 3.3 Does not have habitual related party transaction byway of rent or lease, whether as lesser or

lessee, or real estate, or concerning assets/services or the receipt or provision of financialassistancewithavalueexceedingBaht20millionor3%ofNTA,whicheveristhelower,includingtransactionscarriedoutintheoneyearpriortocarryingoutofanygiventransaction.

Hemust not havebusiness relations asdefined in 3.1 to 3.3 above at present, nor in the twoyearspriortohisappointmentexceptwherethereisnecessaryandproperreasonandinanycasenot continuously or constantly. An IndependentDirector or AuditCommitteeMembermay haverelationsthatgobeyondthosestipulatedwhileperforminghisoffice,butonlyafterobtainingtheunanimouspriorapprovaloftheCompany’sBoardofDirectorandsubjecttotherelationshipbeingdisclosedperForm56-1, in theannual reportand in the letterof invitation to theShareholder’sMeetingintheeventthattheShareholders’MeetingistobeaskedtorenewthetermofofficeoftheIndependentDirectororAuditCommitteeMemberconcerned.

4. Notbeingapersonrelatedbybloodorbyregistrationunderlawsasfather,mother,spouse,siblingorchildorthespouseofachildofanAdministrator,majorshareholderorotherpersoninapositionofauthorityorcandidateasAdministratororpersoninapositionofauthorityoftheCompanyoranyofitssubsidiaries.

5. Hasnotbeenappointed to representaDirectorormajor shareholderorothershareholder that isarelatedpartytoamajorshareholder.

6. Doesnothaveanyothercharacteristiclimitinghisindependence. 7. AnIndependentDirectorhavingthecharacteristicssetoutinpoints1to6abovemaybegivenpowers

bytheBoardofDirectorstodecideonmattersinvolvingtheCompany,itssubsidiaries,itsjointventuresorfellow-subsidiariesorentitieslikelytohaveaconflictofinterestonacollectivedecisionbasis.

SCOPE OF AUTHORITIES AND DUTIES OF THE AUDIT COMMITTEE (1) ToreviewtheCompany’sfinancialreportingprocesstoensurethatitisaccurateandadequate. (2) To review theCompany’s internal control system and internal audit system to ensure that they are

suitableandefficient, todetermineandinternalauditunit’s independence,aswellastoapprovetheappointment,transferanddismissalofthechiefofaninternalauditunitoranyotherunitinchargeofaninternalaudit.

(3) To review the Company’s compliance with the law on securities and exchange, the Exchange’sregulation,andthelawrelatingtotheCompany’sbusiness.


(4) Toconsider,selectandnominateanindependentpersontobetheCompany’sauditor,andtoproposesuchperson’sremuneration,aswellastoattendanon-managementmeetingwithanauditoratleastonceayear.

(5) To review theConnectedTransactionsor the transactions thatmay lead to conflictsof interests, toensurethattheyareincompliancewiththelawsandtheExchange’sregulations,andarereasonable,andarereasonableandforhighestbenefitoftheCompany.

(6) Toprepare,andtodiscloseintheCompany’sannualreport,anauditcommittee’sreportwhichmustbesignedbytheauditcommittee’schairmanandconsistofatleastthefollowinginformation:

(a) Anopinionontheaccuracy,completenessandcreditabilityoftheCompany’sfinancialreport. (b) AnopinionontheadequacyoftheCompany’sinternalcontrolsystem. (c) An opinion on the compliance with the law on securities and exchange, the Exchange’s

regulations,orthelawsrelatingtotheCompany’sbusiness. (d) Anopiniononthesuitabilityofanauditor. (e) Anopiniononthetransactionsthatmayleadtoconflictsofinterests. (f) The number of the audit committee meetings, and the attendance of such meetings by each

committeemember. (g) Anopinionoroverviewcommentreceivedbytheauditcommitteefromitsperformanceofduties

inaccordancewiththecharter. (h) Other truncations which, according to the audit committee’s opinion, should be known to the

shareholdersandgeneral investors, subject to thescopeofdutiesand responsibilitiesassignedtheCompany’sboardofdirectors.

(7) ToperformanyotheractasassignedbytheCompany’sboardofdirectors,withtheapprovaloftheauditcommittee.

MANAGEMENT AsofDecember31,2012,themanagementcomprisesof5persons,asfollows; 1. Mr.KhongsitChoukitcharoen ManagingDirector 2. Ms.VipadaUadulyatham VicePresidentAdministration 3. Mr.Yeh,Tien-Kung VicePresidentofFinancialandAccounting 4. Mr.Huang,Ko-Wei VicePresidentManufacturing 5. Mr.Wang,Wei-Chao VicePresidentManufacturing SCOPE OF AUTHORITIES AND DUTIES OF THE MANAGING DIRECTOR 1. Make a decision on important matters, set duties, objectives and direction of the Company’s

business policy including supervising overall operation performance, customer relation andmarketingforbusinessesinforeigncountriesandbeingresponsibletotheBoardofDirectors.

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ANNUAL REPORT 2012

Thefinancialtransactionssuchasguaranteedebtandlending,theManagingDirectordonothavetheauthoritytodosobutshoulddependontheBoardofDirector’sapproval.

2. ApproveannualbudgetoftheCompany 3. Approve credit limit given to customers, payment period, andproduct sales contracts including

changesintradeconditions,makingguaranteecontractsandobsoleteinventorymanagement. 4. HaveauthoritiestopurchasepermanentassetswiththeinvestmentofnomorethanBaht20million. 5. HaveauthoritiestoinvestinanewprojectwiththeinvestmentofnomorethanBaht20million. 6. Setandapprovestandardofpersonnelmanagementandofemployees’salaryadjustment. 7. Approveconsultantappointmentthatisnecessarytobusinessoperation 8. Performanyotherduties related to theCompany’sgeneraloperation,not includingoperationof

inter-relatedtransactionsandanytransactionregardingpurchaseordisposalofmaterialassetsofthelistedcompanyaccordingtotherulesandregulationsoftheStockExchangeofThailand.

The above authorities, entitled to the Managing Director, have to follow the laws and bylaws of theCompany. In case of any transaction, which affects or may affect on interest of the Managing Director orconnected persons,Managing Director has no authority to approve it and has to propose the issue to theBoardofDirectorsforconsideration. Besides,incasethatthetransactionsincurredareinter-relatedorrelatetopurchaseordisposalofmaterialassetsoftheCompanyoritssubsidiaries,thesetransactionsarerequiredtohaveapprovalfromshareholdersand/ortocomplywiththerules,conditionsandproceduresintherelevantregulationsoftheStockExchangeofThailandregardingtheseparticularmatters.

SELECTION OF DIRECTORS AND EXECUTIVES TheCompanydoesnothaveanynominationcommitteetoappointthedirectors.However,accordingtotheCompany’sguideline,thedirectorsareselectedbytheBoardofDirectorsbyconcerningonexperience,vision,abilitiesandcharacteristics.

THE BOARD OF DIRECTORS AtannualGeneralshareholders’meeting,thedirectorsshouldresignfromtheBoardatleastone-thirdofthetotalnumberofdirectors.Ifthenumberofdirectorscannotbedividedintoexactlythreeparts,theyshouldberetiredbythenumberclosesttoone-third.Andincasethatanyretireddirectorisre-elected,aresolutionoftheshareholders’meetingwillberequired.Atthetimeofcandidate’snominationfortheBoardofDirectors,theCompany will prepare a list of details and information about such candidates for the shareholders’consideration,whichhavetofollowtherulesandproceduresbelow. 1. Oneshareholderisentitledtoonevotepershare. 2. Eachshareholderwillexercisetherightunderitemno.1toelectoneormorepersonstobememberof

the Board of Directors, but cannot divide up his or her votes and allocate such vote for any onecandidate.


3. The candidates obtaining the highest numbers of votes should be appointed directors, until allvacanciesarefilled.Shouldbeatiedvote,theChairmanofthemeetingshallhaveacastingvote.

IntheeventthatthepositionoftheBoardofDirectorsisvacantwhateverthereasonisexceptwhenthetermofthepositioniscompleted,theBoardofDirectorshastoelectperson(s)havingproperqualificationsandbeingnotillegalaccordingtothelawsofpubliccompany.ThevacantpositionwillbefilledinthenextBOD’smeeting,except theremainingtermis lessthan2months.Theelectedpersonwillbe in thepositionfor therestofthetermoftheretireddirector.TheresolutionoftheBoardofDirectorsshouldgetthevotingofnotlessthanthree-fourthofthetotalnumberoftheexistingdirectors.

AUDIT COMMITTEE AND INDEPENDENT DIRECTORS Shareholderwillbeable toappoint theAuditCommitteeand independentdirectorsduringshareholder’smeeting.Thetermoftheappointmentis3yearsandcanbere-electafterthetermexpired.ThequalificationsoftheAuditCommitteememberandindependentdirectorarespecifiedinthedefinitionof“AuditCommittee”.

MANAGEMENT’S REMUNERATION DIRECTORS’ REMUNERATION FOR YEAR 2012

NAME REMUNERATION BONUS MEETING ALLOWANCE

Mr.Hsu,Sheng-Hsiung 6,000,000 480,000 Mr.Shen,Shyh-Yong 5,000,000 360,000 Mr.Hsu,Sheng-Chieh 1,200,000 180,000 Mr.Ko,Charng-Chyi 1,200,000 180,000 Mr.KhongsitChoukitcharoen 1,200,000 180,000 Mr.Chang,Zuei-Wei 1,200,000 120,000 Mr.ThanasakChanyapoon 1,200,000 180,000 Mr.AlanKam 1,200,000 180,000 Mr.WilliamHangManChao 1,200,000 180,000 Total 19,400,000 2,040,000

Remark:Mr.Chang,Zuei-WeihasappointedtobetheCompany’sBoardofDirectorsinceApril20,2012.

REMUNERATION OF THE MANAGEMENT Remunerationofthe5managementmembersincludingsalaryandbonusin2012amountedtoBaht15.08million.

OTHER BENEFITS The Company has issued the Warrants to Purchase New Ordinary Shares of Cal-Comp Electronics(Thailand) Public Company Limited 2011 (CCET-WA) to the Company’s employees, and total amount of1,900,000unitshasallocatedtotheManagementsoftheCompanythrough1styearallotmentin2012.

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ANNUAL REPORT 2012

BOARD OF DIRECTORS AUDIT COMMITTEE

MR. HSU, SHENG-HSIUNG Chairman

INTERNAL AUDIT MANAGER

MR. SHEN, SHYH-YONG Vice Chairman

MS. VIPADA UADULYATHAM VicePresidentAdministration

MR. YEH, TIEN-KUNG

VicePresidentFinancialandAccounting

MR. HUANG, KO-WEI

VicePresidentManufacturing

MR. WANG, WEI-CHAO

VicePresidentManufacturing

MR. KHONGSIT CHOUKITCHAROEN Managing Director

MANAGEMENT STRUCTURE


CORPORATE GOVERNANCE

TheCompany has initiated policies conforming to theCode of Best Practices of the directors of listedcompaniesaccordingtotheproceduresoftheStockExchangeofThailand.TheCompanyvaluestheprincipleofgoodcorporategovernance,consideringallstakeholdersandsocietyasawhole. TheCompany has set the good corporate governance policy that has been approved by TheBoard ofDirectorsasfollowings: • Issued policy for the Rights and Equitable Treatment Shareholders and various groups of

stakeholders. • Managed through absolute responsibility and oversaw any conflict of interests by the Board of

Directors. • Verifiedfinancialstatementandconnectedtransactionwithrelatedpartiesthroughpropercontrol

andinternalaudit,whichincludebusinessoperationandriskmanagement. • Operatedbusinesswith transparencyanddisclosureof information in anadequate, reliable and

punctualmanner. • PerformedunderCodeofEthicsbyDirectorsandemployees. The following lists corporate governance policy reported in 5 separate categories, asmandated by theStockExchangeofThailand.

1. THE RIGHTS OF SHAREHOLDERS Basicshareholderrightsarerightstobuy/sellortransfershares,shareintheprofitoftheCompany,obtainrelevantandadequateinformationontheCompanyinatimelymannerandonaregularbasis,participateandvoteintheshareholdermeetingstoelectorremovemembersoftheboard,appointexternalauditor,andmakedecisions on any transactions that affect the Company such as dividend payment, amendment to theCompany’s articles of association or the Company’s memorandum of association, capital increases ordecreases, the approval of extraordinary transaction and approval on important transactions influencingdirectionsoftheCompany. Inyear2012,besides theabove-mentioned rightsof theshareholders, theCompanyproceeded tocarryoutthenecessaryworkwhichencouragesshareholderstousetheirrightsasthefollowing: 1. In year 2012, the Company held Annual General Shareholders’ Meeting on April 20, 2012 at

Samuthsakorn Factory, the Conference Room of R&D Building 5th Floor, 60Moo 8, Sethakij Road,Tambol KlongMaduea, Ampur KratoomBan, Samuthsakorn which has the voting according to theminutes. The Company delivered an invitation letter, the agenda of each meeting as well assupplementary documents to the shareholders no less than 14 days prior to the meeting dateaccordingtothelawsthroughtheCompany’ssharesregistrar.

2. Releasethedetailedinformationonagendasoftheshareholders’meetingandpostontheCompany’swebsite (www.calcomp.co.th) 30 days before the meeting date, these information is same with thedocumentsthattheCompanydistributedtoshareholders.Moreover,theCompanyinformedclarifyingallshareholderstoattendthemeetingandtherightstovoteonresolutionsviaSCPclientofTheStockExchangeofThailand.

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ANNUAL REPORT 2012

3. Provide shareholders full rights to vote and in case of the shareholders who unable to attend themeetingsareentitledtoappointarepresentativetoattendthemeeting.

4. The Company used the Barcode System in the Annual Shareholders’ Meeting for shareholderregistrationandvotingprocessinordertodemonstratevotingtransparency.

5. TheCompanyheldthemeetingataconveniencelocationandsetupasuitablemeetingroomfortheshareholders.TheCompanyalsogaveanopportunity toshareholders toexpress theirquestionwiththeCompany’sInvestorRelationsDepartmentbeforethemeeting.

2. THE EQUITABLE TREATMENT OF SHAREHOLDERS TheCompanygivestheimportanceintheequitabletreatmentofshareholderstoallshareholders. 1. The Company invited all shareholders of the Company to propose any matter that they deem

significant to be included in an agenda of the Annual General Shareholders’ Meeting 2012. TheCompanymadeannouncementontheCompany’swebsiteandtheSCPClientofStockExchangeofThailand.Proposedagendascanbesent totheCompanyvia InvestorRelationsDepartment’se-mailaddress at [email protected] or postal within specific period. For the Annual General Shareholders’Meeting2012,noanyagendasproposedbyshareholders.

2. TheCompanyinvitedtheshareholderstoproposeaqualifiedcandidatefordirectorshipfortheAnnualGeneral Shareholders’Meeting 2012, the shareholdersmust be theCompany’s shareholder holdingcontinuouslyminimumshares inanamount0.05percentof thetotalshareseitherbyoneorseveralshareholderscombined.And,Shareholdersmusthaveheld thosesharescontinuously forat least12monthsby thedate theshareholdernominatesaqualifiedcandidate.TheCompanyhadannouncedthequalificationofcandidate,theregulationandthesupportdocumentsbypostedontheCompany’swebsite for shareholders to study the detail information. The proposed a qualified candidate andsupportingdocumentscanbesenttotheCompanyviaInvestorRelationsDepartment’se-mailaddressat [email protected] or postal within specific period. For the Annual General Shareholders’ Meeting2012,noanycandidatewasproposedbyshareholders.

3. In case of the shareholders who are unable to attend the meetings are entitled to appointrepresentativee.g. IndependentDirectororaperson toattend themeeting toactas theirproxybyusing proxy form sent to them along with the invitation of the meeting. The proxy forms can bedownloadedfromtheCompany’swebsite.

4. On the shareholders’ meeting, the chairman gives an opportunity to shareholders in auditing theCompany’sbusinessoperation,questioning,showingtheiropinionsandgivingadvicesandalsousesthisopportunitytoclarifytheperformance,futureoutlooktomaketheshareholdersbetterunderstandtheCompany’sbusiness.Thereisnolimitationoflateshareholderstoattendthemeetingandnootheranyagendaaddedwithoutnotifyingshareholders.

5. In appointment director agenda, the Company gives the chance to the shareholders in voting bypersoninordertobetransparentandmoreindependentforelection.

6. Allocate the rights to vote at the meetings according to the number of shares owned by eachshareholder,allowingoneshareonevoteandusingthevotingcardoneveryagenda.


7. IntheAGMmeeting,theCompanyhascompletelyrecordedbywritingtheminutesofthemeetingbyseparatevotingpointtoAgreed,Disagreedandabstainedofeachagenda,attendantandabsentlistofdirector, voting process and Q&A in the meeting and also video recorded the entire meeting. Thecompleted minutes of the meeting were post on the Company’s website within 14 days after themeeting.

8. Established measures to control the usage and prevent the misuse of internal information (insidertrading)forbenefitofapersonconcernedbyprohibitthemfromtradingtheCompanysecuritiesfor30daysbeforefinancialstatementsreleasedandatleast24hoursaftertheinformationiswidelyspreadout to the public. TheCompanywill remind directors,managements and person concerned beforereleasing financialstatements. Incaseanydirectorsandmanagementstaffsellorbuy theCompanysecurities, they are required to report the shareholdings to SECwithin a 3-business day period forpublicdisclosure.

3. ROLE OF STAKEHOLDERS TheCompanypaysattentiontoeverystakeholderasstatedinthefollowingdetails:

1. SHAREHOLDERS AND INVESTORS TheCompanyoperatesthebusinesstoforthebenefittoallstakeholders.Moreover,theCompanyalso

setuppoliciestogiverightstoallshareholdersandinvestorsinacquiringtheCompany’sinformationtransparentlyandreliably.

2. EMPLOYEE TheCompanyviewstheemployeesasamajorassetandtreatsallemployeesfairlyinwelfare,benefit,

environment,safetyinworkingandhealthcareforemployeesasfollows: • Providelunchmealanddinnerfortheovertimeemployee. • Givetheincentiverewardtotheemployeeswhocometoworkontimeeveryday. • ProvidetheProvidentFundtotheemployees. • Createenvironmentalcampaigninthefactoryandtheoffice. • ArrangetheAnnualPhysicalCheckuptotheemployees. • ProvidetheNurseroomineveryfactorytoassuretheemergencycaseforeveryemployee. • Operatethemorningmeetingtoensuretheunderstandinginsolvingandincreasetheknowledge

totheemployeestodotherightjobatthefirsttime.Moreover,theCompanyalsohastheinboundandoutboundtrainingtodeveloptheworkingskillcontinuously.

Moreover, access to senior management is granted and expressed on the Employee Handbook..“WhistleBlowers”willbeproperlyprotectedandrewardediftheirallegationsarefoundtobetrue.

3. CUSTOMER Customer information is treated as strictly confidential according to theBusiness Ethics in order to

buildthegoodandlongstandingrelationshipbetweentheCompanyandthecustomers. 4. SUPPLIER The Company treats all suppliers as business partners, and works with all in building a long-term

relationship.

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ANNUAL REPORT 2012

5. CREDITOR TheCompanyconductsbusinessaccordingtothebusinessagreementandgivesaccurateandfactual

informationtoallcreditors. 6. BUSINESS COMPETITOR TheCompanycommitstodoingbusinessinafairandequitablemanner. 7. SOCIETY TheCompanyrealizesthesafetyofsocialandenvironmentandthequalityoflifeinsocietywherethe

Company located, thus CCET intends to follow the law and regulation strictly and continuouslysupportingcorporateSocialResponsibilitiesProgram.

8. ENVIRONMENT The Company has set the environmental policy and everyday at CCET is regarded as worldwide

environmentday.Moreover,theCompanyalsoestablishestheenvironmentcommitteetoreinforcetheidealoftheemployeesparticipatinginenvironmentalperseverancebothinsideandoutsidethefactory.

4. DISCLOSURE AND TRANSPARENCY The Company ensures that all-important information relevant to the Company, both financial and non-financial,isdisclosedcorrectly,accurately,onatimelybasisandtransparentlythrougheasytoaccesschannelsthatarefairandtrustworthy.TheCompanyshalldisclosethefollowinginformation 1. Disclosedutiesandresponsibilitiesof theBoardofDirectorsandalsoreveal theattendancerecords

and the report of the Board of Director. The Board of Directors is responsible for the Company’sconsolidated financial reportsand financial informationappearing in theannual reports.The financialstatementsarepreparedbasedontheaccountingstandardsgenerallyacceptedinThailandbyusingtheappropriateaccountingpolicy.

2. TheCompanydisclosed information on remuneration of all directors. TheCompany has establishedremuneration to the directors in a precise and transparent manner and submitted to the AnnualGeneralShareholders’meeting for approval. The remuneration to themanagementmust conform tothe procedures and policies set by the Board of Directors, which must also coincide with theCompany’sperformanceandtheperformanceofeachmanagement.

3. DisclosethepolicyenvironmentaloftheCompany. 4. Disclosethepolicyoncorporategovernancecompliedwiththepolicy. 5. The Company set up the Investor Relations. As a result, the Company emphasizes on disclosing

information that is adequate, accurate, trustworthy, consistent, and punctual. Regarding the investorrelations, the Company has designated an investor relation department to communicate with theshareholders,institutionalinvestors,individualinvestorsandfinancialanalystsincludingtheinterestedparties.

TheInvestorRelationsrepresentatives: Ms.JennyChou InvestorRelationsManager Tel.0-2261-5033-37Fax.0-2661-9396 E-mail:[email protected]:www.calcomp.co.th KhunSunaddaJaypong CorporateSecretary Tel.0-2261-5033-37Fax.0-2661-9396 E-mail:[email protected]:www.calcomp.co.th42


6. Discloseup-to-dateinformationinbothThaiandEnglishversionontheCompany’swebsite.

5. THE RESPONSIBILITIES OF THE BOARD The Board of Directors plays an important role in corporate governance for the best interest of theCompany.TheBoardisaccountabletoshareholdersandindependentofmanagement.Thenumberofdirectorsiscurrently limitedtoninedividedto2committees,theCompany’sdirectorsconsistof1ExecutiveDirectorsand8Non-ExecutiveDirectors. The Chairman of the Company is not the same one as the Managing Director, and the duties andauthoritiesoftheBoardofDirectorsandoftheManagingDirectorareclearlyseparated.TheCompanyhas3independentdirectorswhoprovidecheckandbalance,independenceandrepresentallminorityshareholders. TheBoardofDirectorshasappointed theAuditCommittee toassist in thecorporategovernanceof theCompany. Name list, duties and authorities of the Audit Committee are aswhatmentioned inManagementStructurepart.TheAuditCommitteewillarrangeonemeetingevery3months. BOARD OF DIRECTORS’ MEETING TheBoardofDirectorsarrangesameetingforevery3monthstoconsidertheresultsofoperationandthefinancialstatements.Besides,theBoardsetsvisions,goals,strategies,andprovidespoliciestotheCompany,supervisesandcontrolsoperation.Specialmeetingmaybearrangedifnecessary,andaninvitationletterwithspecificagendawillbesenttotheBoardofDirectors7dayspriortothemeetingtogivetheBoardofDirectorsanappropriatetimeperiodininvestigation. In2012,theCompanyhadarrangedatotalof6meetingscomprisedof4regularmeetingsand2specialmeeting.Ineachmeeting,atleasthalfofthedirectorsmustparticipateaccordingtotheCompany’sarticle.TheCompany’sBoardofDirectorsconsistsofthefollowingmembersandmeetingattendance. BOARD MEETING

Name Position Meeting Attendance

1.Mr.Hsu,Sheng-Hsiung Chairman 5/6 2.Mr.Shen,Shyh-Yong ViceChairman 6/6 3.Mr.KhongsitChoukitcharoen ManagingDirector 6/6 4.Mr.Ko,Charng-Chyi Director 3/6 5.Mr.Hsu,Sheng-Chieh Director 3/6 6.Mr.Chang,Zuei-Wei* Director 5/5 7.Mr.AlanKam IndependentDirectorand 4/6 ChairmanofAuditCommittee 8.Mr.WilliamHangManChao IndependentDirectorand 5/6 AuditCommittee 9.Mr.ThanasakChanyapoon IndependentDirectorand 5/6 AuditCommittee

Remark: *Mr.Chang,Zuei-WeihasappointedtobedirectoroftheCompanysinceAGM2012datedApril20,2012.

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AUDIT COMMITTEE MEETING

Name Position Meeting Attendance

1.Mr.AlanKam IndependentDirectorandChairman 3/4 ofAuditCommittee 2.Mr.WilliamHangManChao IndependentDirectorandAuditCommittee 3/4 3.Mr.ThanasakChanyapoon IndependentDirectorandAuditCommittee 4/4

Whenconsidering thematterspresented to theBoard,allmemberof theBoardareallowed toexpresstheiropinionsfreely,resolutionsarepassedbymajorityvote,providingthatonedirectoriseligibleforonevote.Afterthemeeting,thesecretaryoftheBoardisresponsibleforpreparingtheminutesandcertifiedthecorrectlybyChairmanandViceChairman.Theminutesmustthanbeapprovedbynextboardmeeting.LEADERSHIP AND VISION TheCompanyhassetthevisiontobetheleaderinElectronicsManufacturingServices(EMS)andprovidedthebestserviceandtotalsolutiontothecustomersallovertheworld.TheBoardofDirectorshasparticipatedin thesetupof theCompany’svision,mission,strategies,objectivesbusinessplanandbudgetsandalso insupervisingtheManagementtoachievetheCompany’sgoalswithinthebudget.CONFLICT OF INTERESTS Incaseoftheconflictofinterestsortherelevanttopic,theBoardofDirectorsandtheAuditCommitteewillreasonablyconsiderinthattopicinaccordingtotherelevantrulesandregulationsofTheStockExchangeofThailand. The price and conditions should be similar to Arm’s Length Basis and has disclosed details,transactionvalue,andreason/necessityinconnectedtransactionreport.BUSINESS ETHICS TheCompanyhassetrulesonbusinessethicsinthewaythatSETgaveasaguidelineforexecutivestoperform.AndtheserulesguidetheexecutivesandemployeesoftheCompanytofollowcarefullyandregularly.TheCompanyhasemployeehandbooksoastosetastandardforwork,qualityandpractice. REMUNERATION FOR DIRECTORS AND MANAGEMENT The Company has established remuneration to the directors in a precise and transparent manner andshouldbeapprovedbyshareholders’meeting. INTERNAL CONTROL SYSTEM TheCompany recognizes the importance of internal control system at both the executive level and theoperationallevel.TheCompanyhasproperguidelinesandoperationmanualsforallitsemployee.TheCompanyhasaninternalcontrolsystemregardingthefinancialsystemtoproposethefinancialreportstothesupervisors. RISK MANAGEMENT The Audit Committee is responsible for considering the risk factor report of the Company by quarterlyreview and reporting to the Board of Directors in order to mange the risk factor that will impact to theCompany. KNOWLEDGE DEVELOPMENT The Company encourages the Board of Directors to attend seminars for knowledge development andcontinuously presents up-to-date information including SET, SEC and relevant organization newsletter to alllevelsofstaff.


RELATED PARTY TRANSACTIONS

TherelationshipbetweentheCompanyandtherelatedpartiesaresummarizedbelow.

NAME OF RELATED PARTIES RELATIONSHIP WITH THE COMPANY

KinpoElectronics,Inc. MajorshareholdersLogistarInternationalHoldingCo.,Ltd. SubsidiaryCal-CompElectronics(Suzhou)Co.,Ltd. SubsidiaryCal-CompOpticalElectronics(Suzhou)Co.,Ltd. SubsidiaryCal-CompElectronics&CommunicationsCo.,Ltd SubsidiaryCal-CompTechnology(Suzhou)Co.,Ltd. SubsidiaryCal-CompElectronicsandCommunications(Suzhou)Co.,Ltd. SubsidiaryCalComp(Malaysia)SDN.BHD. SubsidiaryCal-CompPrecision(Singapore)Limited SubsidiaryCal-CompIndustriaeComerciodeElectronicaeInformaticaLtda. SubsidiaryCal-CompElectronicsdeMexicoCo.,S.A.deC.V. SubsidiaryCal-CompElectronics(USA)Co.,Ltd. SubsidiaryNewKinpoGroupTechnology(Philippines),Inc. SubsidiaryCal-CompPrecision(Shanghai)Co.,Ltd. Subsidiary(heldbyasubsidiary)Cal-CompPrecision(Malaysia)SdnBhd Subsidiary(heldbyasubsidiary)Cal-CompPrecision(Thailand)Limited Subsidiary(heldbyasubsidiary)Cal-CompPrecision(Dongguan)Limited Subsidiary(heldbyasubsidiary)Cal-CompPrecision(Wujiang)Limited Subsidiary(heldbyasubsidiary)Cal-CompUSA(Indiana),Inc.(formerlyknownas“TotalElectronics,LLC”) Subsidiary(heldbyasubsidiary)Cal-CompUSA(SanDiego),Inc.(formerlyknownas“SMSTechnologies,Inc.”) Subsidiary(heldbyasubsidiary)A-TenTechnologyCo.,Ltd. Associate(heldbyasubsidiary)WiseSigmaInternationalHoldingCo.,Ltd. Associate(heldbyasubsidiary)Daviscomms(S)PteLtd. Associate(heldbyasubsidiary)OptosemTechnologies(S)PteLtd. Associate(heldbyasubsidiary)inxJapanInternationalInc. ShareholdingbytheCompanyZakangInc. ShareholdingbytheCompanyMetalComponentEngineeringLimited ShareholdingbytheCompanyKinpoGroupManagementServiceCo.,Ltd. ShareholdingbythesubsidiaryKinpoElectronics,Inc.(China)Co.,Ltd. SubsidiaryofthemajorshareholderKinpoElectronics(Beijing)Co.,Ltd. SubsidiaryofthemajorshareholderKinpoElectronics(Shanghai)Co.,Ltd. SubsidiaryofthemajorshareholderSaveComInternational,Inc. SubsidiaryofthemajorshareholderKinpoInternationalLtd. CommonshareholdersViboTelecomCo.,Ltd. CommonshareholdersAcbelPolytechInc. CommonshareholdersCrownpoTechnology,Inc. CommonshareholdersDongguanKaipoElectronicsCo.,Ltd. CommonshareholdersRamark: KinpoElectronicsInc.holding100.00%inKinpoInternationalCo.,Ltd.KinpoElectronicsInc.holding44.82%inViboTelecomCo.,Ltd.CompalElectronicsInc.holding40.41%inViboTelecomCo.,Ltd.KinpoElectronicsInc.holding23.02%inAcbelPolytechInc.KinpoElectronicsInc.holding51.61%inCrownpoTechnology,Inc.

45

ANNUAL REPORT 2012

THE

AMOU

NT A

ND O

UTST

ANDI

NG B

ALAN

CE O

F TH

E RE

LATE

D PA

RTY

TRAN

SACT

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arty

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scrip

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B)

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ason

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ee

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47

ANNUAL REPORT 2012

Par

ty w

hich

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4�

ANNUAL REPORT 2012

4.Ac

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51

ANNUAL REPORT 2012

8.V

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SUPPLY/MANUFACTURING AGREEMENT

PARTIES CONCERNED : Cal-Comp Electronics (Thailand) Public Company Limited and KinpoElectronics,Inc.(acompanyincorporatedunderthelawsofTaiwan).

EXECUTION DATE : 1stApril2004MATERIAL SUBJECT : ThetermoftheagreementappliestoeachpurchasebyKinpotoCal-

Compof thegoodsandservicesasspecifies in thePurchaseOrderand

1. Cal-Comp shall notify Kinpo in advance and in writing of anyproposed change in method of producing or test ing,subcontractors for producing, processing and testing, site ofmanufactureandlabeling.

2. Allproductsshallmeet thespecificationsandshallbesubjectedtoqualitycontrolinspectionbyCal-CompinaccordancewithCal-Comp’squalitycontrolstandards.Cal-CompshallpermitKinpotoreview periodically Cal-Comp’s production and quality controlproceduresandrecordsandtovisitCal-Comp’sfacilities.

EXPIRY DATE : TheAgreementshallcontinueinfullforceandeffectforoneyear.Theagreementshallberenewedandeffectiveforanotheroneyearifthereisnoobjectionbeforetheendoftheaboveeffectiveperiod.

LICENSE AGREEMENT

PARTIES CONCERNED : Cal-CompElectronics (Thailand)PublicCompanyLimitedandZakangInc.(acompanyincorporatedunderthelawsofKorea).

EXECUTION DATE : 25thSeptember,2000MATERIAL SUBJECT : 1. TheCompanyisgrantedexclusiverighttousepatentsandknow-

howforproductionownedbyZakangthroughoutthevalidityoftheAgreement.

2. Zakang agrees to provide technical assistance for production ofpagers.

3. TheCompanyisentitledtosellZakang-technologypagersinanycountry,exceptKorea.

EXPIRY DATE : This Agreement shall be terminated upon occurrence of any of thefollowingevents.

1. Either party breaches any provision thereof, and fails to remedywithintheperiodof60days.

2. Eitherpartyparticipatesinthebankruptcyproceedings. 3. Eitherpartybecomesan injuredpartyduetoanyActofGodfor

anuninterruptedperiodofmore than6months fromthedateofnoticegivenbytheotherparty.

53

ANNUAL REPORT 2012

AGREEMENT FOR SHARING MIS SYSTEM (MANAGEMENT INFORMATION SYSTEM)

PARTIES CONCERNED : Cal-Comp Electronics and Communication Co., Ltd. And KinpoElectronics,Inc.

EXECUTION DATE : January1,2013MATERIAL SUBJECT : Cal-Comp Electronics and communication Co., Ltd. shared MIS

resourceandsystemfromKinpoElectronicsInc.tosupportoperationandreportingsystem.

EXPIRY DATE : December31,2013

AGREEMENT FOR PROFESSIONAL SERVICES

PARTIES CONCERNED : Cal-CompElectronicsandCommunicationCo.,Ltd.andKinpoGroupManagementServiceCo.,Ltd.

EXECUTION DATE :December1,2006MATERIAL SUBJECT :Kinpo Group Management Service Co., Ltd. provides Consultant

Service for accounting, finance and tax planning to Cal-CompElectronicsandcommunicationCo.,Ltd.

EXPIRY DATE : The Agreement shall continue in full force if there is no objectionbeforetheendoftheaboveeffectiveperiod.

AGREEMENT FOR OFFICE LEASING

PARTIES CONCERNED : Cal-Comp Electronics and Communication Co., Ltd. and KinpoElectronicsInc.

EXECUTION DATE : September1,2012MATERIAL SUBJECT : Cal-CompElectronicsandCommunicationCo.,Ltd.hasleasingoffice

spacefromKinpoElectronicsInc.EXPIRY DATE : August31,2013

CRITERIA OR STEPS IN APPROVING RELATED COMPANY TRANSACTIONS The Board of Directors has appointed theManagingDirector the authority to approve transactionswithrelated parties under normal business conditions, which must conform to the regulation of Securities andExchange Act and rules, notifications, and notice of the Stock Exchange of Thailand including the rulesregarding the disclosures of related transactions, the acquisition or disposition of thematerial assets of theCompanyoritssubsidiarycompanyaccordingtothegenerallyacceptedaccountingstandardsinThailand. The assigned authoritymust conform to the laws and theCompany’s bylaws. In case that there is anytransaction which has or may have the conflict of interests of Managing Director or related persons, theManagingDirectorhasnorightstoapprovesuchtransactionandhastoproposesuchtransactiontotheBoardofDirectorsforconsideration. Moreover,therelatedcompanytransactionorthetransactionrelatedtotheacquisitionordispositionofthematerialassetsof theCompanyor thesubsidiarycompany,asthecasemaybe,hastobeapprovedbytheshareholders’ meeting and/or any action under the related regulations or methods to conform to thenotificationsoftheSET.


POLICY AND TREND OF FUTURE RELATED COMPANY TRANSACTIONS The Company’s policy is to operate business for utmost benefits of the Company and its subsidiarycompanies.Undernormalbusinessoperation,theCompanyanditssubsidiarycompaniesmustincurintosalesor service transactions with related companies. Therefore, the Company and its subsidiary companies willcontinuetohavetherelatedcompanytransactionsunderthenormalbusinessconditionswiththefairormarketprice,whichisabletocomparetothetransactionwithothers.

METHOD TO PROTECT INVESTORS Toprotectinvestors,ifthereisanyrelatedcompanytransactionsbetweentheCompanyorthesubsidiarycompanyandtheaffiliatecompany,andtherelatedpartiesinthefuture,thesetransactionsmustbeconsideredby the Board of Directors, which has the Audit Committee giving the opinion for the necessity and theappropriatenessofthetransactions.Directorswhohaveaninterestinsaidtransactionshavenorightstovoteon such matters. In the event that the Audit Committee doesn’t have an expertise in the matter of suchtransactions,theCompanywillprovideanindependentexpertortheCompany’sauditortoprovideanopinionastothenecessity,reasonsanddecisionbytheBoardofDirectorsorshareholdersinmakingthetransactions,asthecasemaybe.TheCompanywillalsodisclosethetransactionsinthenotesoftheCompany’sauditedfinancialstatements.

THE AUDIT COMMITTEE’S OPINION TheAuditCommitteehasconsideredthepastandrecentlyrelatedcompanytransactionsoftheCompany,the subsidiary companies or the related parties and has the opinion that the Company has disclosed theinformationcorrectlyandcompletely.Suchtransactionswereunderthenormalbusinessconditionswitheitherthemarketpriceorclosetothemarketprice.

55

ANNUAL REPORT 2012

AUDIT COMMITTEE REPORT–2012

CAL-COMP ELECTRONICS (THAILAND) PUBLIC COMPANY LIMITED (CCET) Themembers of the Audit Committee at CCETwere responsible in themonitoring of the financial well being of theCompanyandtheinternalauditfunctionsofthecompany. TheAuditCommitteehas3independentdirectors.Theyare: 1. Mr.AlanKam Chairman&IndependentDirector 2. Mr.WilliamHangManChao IndependentDirector 3. Mr.ThanasakChanyapoon IndependentDirector TheAuditCommitteehad4meetingsin2012plusvariousothermeetingswithexternalauditors,managementandinternalauditors.TheAuditCommitteeperformedthefollowingdutiesinthe2012financialyear: FINANCIAL STATEMENT - TheAudit Committee reviewed theReviewed andAudited statements of the company on aregular basis before submitting to the Board of Directors for approval. Consultations weremade withmanagement of thecompany on various occasions to assure that committeemembers are satisfied with the reporting of the statements. TheCommittee also reviewed the statements of its subsidiaries and affiliates. The Committee is satisfied that the financialpresentation is accurate and they are in conformitywith the regulations of the Stock Exchange of Thailand and SecuritiesExchangeCommissionofThailand. INTERNAL AUDIT-AsidefromapprovingtheannualauditplanoftheInternalAuditDepartment,thecommitteealsoholdregularmeetingswith the InternalAuditDepartment todiscussanyoutstanding issues related to thedepartment’s function.InternalAuditstaffshowed independenceanddiligence in reviewingvariousaudit issuesof thecompany.Thecommittee issatisfiedwiththeworkoftheInternalAuditDepartment. EXTERNAL AUDITORS-TheAuditCommitteemetwithErnst&Young,thecompany’sexternalauditorontheReviewedand Audited financial statements regularly. The committee also discussed the annual audit plan,matters of concern withexternalauditors.TheexternalauditorhasalsobeenadvisingmanagementontheIFRSconversionplaninthepastfewyears.Thecompanyhasconvertedinthe2012year. RISK MANAGEMENT - TheCompany continue to remain risk adversewhilemaintaining a policy of growth. The AuditCommitteehasensured that seniorandmiddlemanagementcontinue tohavesound financialpractice inmanaging foreigncurrencyexposure,capitalbudgeting,materialcostcontrol,laborissuesaswellassafetymeasures. RELATED PARTY TRANSACTION-TheAuditCommitteehasreviewedtheconnectedpartytransactionsoftheCompany,itssubsidiariesandaffiliates.Itissatisfiedthattransactionsarereasonableinthenormalcourseofbusiness. CORPORATE SOCIAL RESPONSIBILITIES - Cal-Comp has been at the forefront of practicingCSR in the past years. Itcontinues to take proactivemeasures in ensuring proper energy savings and wastemanagement control. The Cal-CompUniversityprogramcontinuetoawardMBAtrainingforitsmiddlemanagementemployeesanditcontinuetoawardscholarshipprograms to localschoolsboth inThailandandChina. InOctoberof2012,DirectorsofCCETwasgrantedanaudiencebyH.R.M.PrincessSirindhornanddonatedUS1milliontotheChaiPattanaFoundation. TheAuditCommitteemembershaveoverthecourseofthe2012yearvisitedthecompany’svariousfactoriesinMahachaiandPetchburi.Inaddition,AuditCommitteemembersalsovisitedexistingplantsinChinainJuly2012.Chinacontinuestobean important platform for CCET producing almost half of the group’s revenue. The Audit Committee is pleased with thecontinued improvement in theareasof factorymanagement including thoseofsafetystandards,administrationand financialmanagement.WithtwonewfactoriessetupinBrazilin2012,AuditCommitteealsovisitedthese2plantsinManaus,BrazilinDecember2012alongwithexternalauditors.ThisnewterritoryprovidesnewchallengestothemanagementofCCET.However,weareconfidentthatthechallengescanbeovercomewithfactoryautomation,financialdisciplineandproperhumanresourcemanagement,allowing thecompany to reap reward in theSouthAmericanmarket.TheAuditCommittee issatisfied thatallnewlyacquiredbusinesseshavebeenworkinghardtomaintainthehighstandardofproduction,administrationandfinancialdisciplineasitsheadquartersinThailand. Onceagain,theAuditCommitteewishestothankthemanagementteam,internalauditstaffandexternalauditorsfortheirsupportinmakingtheCommittee’sjobpleasantandefficientthroughoutthe2012year.

ALAN KAM IndependentDirector ChairmanoftheAuditCommittee56


TheBoardofDirectorsperceives that the internalcontrolsystemof theCompanyand itssubsidiaries isenoughtoretain theassetsof theCompanyand itssubsidiaries,concerningthat the internal informationwillnotbeusedontheexecutive’sownbenefits.Throughthepast,therewasnoflawintheinternalcontrolsystemused.

1. ORGANIZATION AND ENVIRONMENT TheCompanysettheclearachievableandmeasurablegoals,revisedtheoperationalgoals,consideredthepossibilityof thegoalsetalong,andanalyzedthereasonablenessof incentivesandemployeecompensation.Theoperationpolicyandprocedureswerewrittenasadocumentpreciselyandabletopreventthedishonesty.

2. RISK MANAGEMENT TheimportantriskfactorsassessedbytheCompanyaresuchasexchangeraterisk,riskofrelianceonamajor customer, risk of working capital shortage. TheCompany specified the standard to follow the eventsperceived as the causes of risk. The following strategy will be applied every month to closely monitor theperformance.

3. MANAGEMENT CONTROL TheCompany clearly set the limits on authorities and authorities on cash approval of the executives ineachlevelandtheruleswerewrittenasadocumentsuchastheauthoritiesofmanagingdirectorspecifiedinitem9,management.

4. INFORMATION TECHNOLOGY AND COMMUNICATION SYSTEM TheCompanyprovided enough significant information to theBoardofDirectors, and also submitted aninvitation letterornecessarydocument for themeeting forconsiderationprior to themeeting.Thedirectors’meetingreportswererecorded,andifthereisanydisputeontheresolutionagainstthemajority,thedirectors’opinion memos will be recorded as well. The document for accounting records were arranged and keptproperlyandtherewasnoreportoffaultsfromtheAuditorinthedocumentarrangement.

5. FOLLOW-UP SYSTEM If theoperatingresultsof theCompanyaredifferent fromthe targetgoals, theCompanywillsolve themwithinanappropriateperiodoftimeandwillprovidetheinvestigationonoperation,whichisconformabletotheinternal control system. In this regard, the Audit Committee of theCompanywill observe on any differenceeveryquarterofeachyear. TheCompany has arranged the quarterly AuditCommitteeMeeting to approve the financial statements,internalauditcontrolandrelatedpartytransaction.ThelatestmeetingwasheldonFebruary20,2013,approvedthefinancialstatements, internalauditcontrolandconnectedtransactionforyear2012.TheAuditCommitteehadconsidered that the internalcontrolof theCompany isonstandardand the relatedparty transactions isreasonable,theconditionswereinlinewiththenormalbusinesspracticeandthepriceofthetransactionwasclosetothemarketprice.

INTERNAL CONTROL

57

ANNUAL REPORT 2012

The Board of Directors is responsible for the accuracy and completeness of the Company and itssubsidiary’s financial statements.Accountingprinciplesusedand financial statementsare incompliancewithaccountingstandardsanddisclosed. Inordertoensuretheeffectivenessofinternalcontrolandauditsystem,theAuditCommitteewillregularlyreviewthefinancialstatementandinternalcontrolsystem.TheAuditCommitteereporthadalreadydisclosedinannualreport. TheAuditcommitteehadclarifiedon internalauditwithgoodmanagement thatcanbeconfident for thefinancialstatementsoftheCompanyanditssubsidiariesasof31December2012. MR. HSU, SHENG-HSIUNG MR. SHEN, SHYH-YONG MR. KHONGSIT CHOUKITCHAROEN

Chairman ViceChairman ManagingDirector

DIRECTORS’ REPORTING


TheCompany believes its environment, safety and pollutionmanagement practices should be compliedwithregulationsinconsiderationthatCCETiscommittedtopreventpollution,efficientlyusetheresourcesandcontinuouslyimproveemployeesafetytraining.Furthermore,CCETrealizesthesuccessoftheCompanyisnotonly measuring by operation results but also the responsibility to society and environment, therefore, theCompanyhasdeterminedtocontinuefurthercontributioninyear2012asthefollowing:

SOCIAL GREEN EARTH TheCompanyrealizestheimportanceofgreenenvironmentandhasjoinedtheGreenProjectbyCustomDepartmenttoprotectthemangroveforest,anaturalresourcesandthelivingofsealife.OnApril28,2012,theCompany’s employees have participated with the Customs Department to afforest at the coast nearSamutsongkhram.TheobjectiveisdesignedforCelebrationinHonorofHisMajestyTheKing’sbirthday84thAnniversary and to promote the private and Government sectors altogether to uplift their awareness onenvironmental protection and values of natural habitat in hoping to broadening a healthy marine ecologicalsystemalongcoastalareas.DONATION TO CHAIPATTANA FOUNDATION TheCompanyseestheimportanceandnecessitytoamelioratethewatermanagementsystemaswelltheinfrastructures in response to theThailand flood incidentback inyear2011and theaid for thosewhohaveconsequently suffered from the tragic flooddisaster andother natural disasters, therefore theCompany hasscheduledanddonatedUSD1milliontotheChaipattanaFoundationseekingpreventionforfuturetragediesinaccordance with His royal discretion. The Directors of the Company was granted an audience by H.R.M.PrincessSirindhorninOctober,2012forthedonationceremony.

DEVELOPMENT POTENTIAL OF HUMANITY TheCompanyhas launchedanewproject fordevelopingSkill,Technology& Innovation (“STI”), thathasbeensupportedbyTheBoardofInvestmentofThailand(“BOI”)anditwillbestartingfrom2008to2014.Thebudgetof thisproject isapproximatelyBaht150millionandthereare3projectsunder thismasterplan, thedetailsofeachprojectsummarizeasthefollowing:1st PROJECT The Company has established a Research and Development Center for designing computer peripheralproductsinThailandtoupgradelocalEngineer’scapabilityontointernationalstandard,andtoproducebetterqualityoftheproductsandtomeetthedemandofthemarket.2nd PROJECT TheCompanyhascoordinatedwiththeeducationinstitutessuchasKingMongkut’sInstituteofTechnologyLadkrabang,MahanakornUniversityofTechnology,andNECTECfortheresearchontheElectronicsandNewTechnologyproject.Theprojectaimsatsupportinginstituteforpropertechnologyandequipmentdevelopmentinordertoenhancelocalengineer’sprofessionalknowledgeaswellasimprovementinproductionefficiency Inaddition,theCompanyoffersscholarshipstoaforementionedinstitutesinthedepartmentofengineeringinBachelorandMasterDegreetosupportpotentiallocalstudentswhoareenthusiasminthesaidfield.

SOCIAL AND ENVIRONMENT

RESPONSIBILITIES

5�

ANNUAL REPORT 2012

3rd PROJECT The Company has cooperatedwith institute and organizedHigh Technology Training Program to assistlocalengineerstheopportunitytotrainandtopracticeinthesaidfieldoverseas.Suchprogramaimstoprovidepotentialstudentswithgloballearningenvironment.

ENVIRONMENT Regardingtheenvironment,theCompanyrealizestheimportanceoftheenvironmentandtheresponsibilityfor theenvironment and theeffect of theenvironment thatmayharm theneighbor and theemployees. TheCompanyhastheEnvironmentalPolicyas: We,Cal-Comp,committotheworldwideenvironmentalpolicy,whichstate“Theenvironmentprotectionistheresponsibilityofhumanbeing”andeverydayatCal-Compistheworldwideenvironmentday.Moreover,wehavetheadditionalpolicyasfollowing: 1. Correctingandpreventing thepollution,aswellas,decreasing, treatingandmonitoringthewasteof

factoriesasstateperiodtimetoconformtothelegalandregulationareourcommitment. 2. Energysavingisthemustbyrecycleandenergyconsumablereductiontopreventthepollution. 3. Awareness training and environment knowledge training are given to the employees for efficient

protectionofenvironment. 4. Monitoringandimprovingtheenergyconsumptioncontinuouslytooptimizethebenefitfromenergyis

ourmissionofenergyguardness. 5. Eliminateandreducethehazardmaterialstoenvironmentascustomerrequirementisourcommitment. The above environment policy is our commitment and also the awareness throughout the Company byusingseveralmethodstoachieveourpolicyandcompany’smission. The Company has been committing to the policy and also training the employees to ensure theunderstandingandpracticaltocommitofthispolicy. TheCompanyalsoappointed theenvironmentcommittee to take responsibility incontrol, lookafterandservice.Theirresponsibilitiesareasfollows: 1. Establishtheenvironmentpolicy 2. Environmentevaluation 3. Reviewenvironmentevaluationresult 4. Legalandotherrequirementselection 5. Establishtheenvironmentprograms 6. Establishobjectivesandtargets 7. Effectivenessofenvironmentcommunication 8. ReviewenvironmentmanagementsystemThecommitteesetupthecrucialpointinenvironmentmanagementas: • OnbehaveofEnvironmentcommittee;allrelevantfunctionsmustidentifytheaspectofair,wastewater

andgarbagetoconformingtolegalandregulationimpactingtotheinterestpartiesbeforedevelopingtheenvironmentsystem.


• Everyfunctionshallreporttheenvironmentevaluationresultforallaspects. • Environmentcommitteeshallimplementtheriskassessmentresultsfromthepast,presentandfuture. • Thepriorityofcorrectionshallprioritizeaspertheimpactresultsfromtheriskassessment,aswellas,

thecostcontrolandtechniquecontrol. • The advanced planning for the compliance activities and maintained when to implementing these

activities.Allaspectsshallbereviewedevery4months. The Company also realizes the importance in communication about the environment to customers,employees, suppliersand relevantpersons to inform thechangeof the rulesand regulations.Moreover, theCompanyalsohastheenvironmenttrainingfortheemployeestoworkeffectivelyandsmoothly.TheCompanyalso has the evaluation for the effect of the environment by dividing every work in the factory to build thestandardincontrolthetrendthatcanharmtheenvironment,checkingthequalityoftheenvironmentsuchaswater,air,andsoundaccordingtothelaws,arrangingtheemergencyplanandalsohavethetrainingtoreducetheenvironmentalharm.TheCompanyalsocoordinateswiththegovernmenttoreducetheenvironmentaleffectby the Company received ISO 14001 certification from AFAQ & Bestcert (Thailand) Co., Ltd., France whichresult from the successful in implementing the ISO 14001 standard for Environmental Management System(EMS)atbothMahachaiandPetchaburiplants.

REMUNERATION FOR AUDITOR 1. AUDIT FEE For year 2012 theCompanyhaspaid the audit feeof 3,500,000Baht toErnst&YoungOffice Limited,CertifiedPublicAccountantNo.3516Ms.RungnapaLertsuwankul.TheAuditfeefortheperiodofyear2012hadbeenapprovedbytheshareholdermeeting,theremunerationofnotexceedingBaht3,500,000perannum.2. OTHER FEE -None-

61

ANNUAL REPORT 2012

MANAGEMENT DISCUSSION AND ANALYSIS

(Unit:MB)

Audited Audited Audited

Items 2010 2011 2012

Amount % Amount % Amount %

Assets Cashandcashequivalents 5,343.69 9.79 1,975.17 3.50 1,840.19 3.20Currentinvestments 449.74 0.82 527.82 0.94 110.93 0.19Tradeandotherreceivables 29,010.52 53.14 26,703.76 47.34 26,803.58 46.61Inventories 9,912.79 18.16 14,053.38 24.91 11,742.09 20.42Advancespaymentforrawmaterials 326.35 0.60 387.15 0.69 340.28 0.59Othercurrentassets 654.01 1.20 966.27 1.71 1,014.64 1.77Totalcurrentassets 45,697.10 83.71 44,613.55 79.09 41,851.71 72.78

Property,plantandequipment 8,074.27 14.79 10,996.88 19.49 14,928.29 25.96Investments 207.82 0.38 197.71 0.35 162.77 0.28Othernon-currentassets 614.14 1.12 604.18 1.07 562.58 0.98Totalnon-currentassets 8,896.23 16.29 11,798.77 20.91 15,653.64 27.22

Totalassets 54,593.33 100.00 56,412.32 100.00 57,505.35 100.00

Liabilitiesandshareholders’equity Short-termloansfromfinancialinstitutions 11,924.38 21.84 15,362.43 27.23 15,799.18 27.47Tradeandotherpayables 26,821.59 49.13 24,666.33 43.73 24,160.30 42.01Othercurrentliabilities 2,090.18 3.83 1,741.65 3.09 1,316.18 2.29Totalcurrentliabilities 40,836.15 74.80 41,770.41 74.05 41,275.66 71.77

Provisionforlong-termemployeebenefits 36.73 0.07 64.39 0.11 112.24 0.20Deferredtaxliabilities - - 8.65 0.02 51.61 0.09Long-termloans,netofcurrentportion - - - - 784.17 1.36Totalnon-currentliabilities 36.73 0.07 73.04 0.13 948.02 1.65

Totalliabilities 40,872.88 74.87 41,843.45 74.18 42,223.68 73.42

Shareholders’equity

Issuedandpaidupsharecapital 4,077.56 7.47 4,077.56 7.23 4,077.56 7.09Sharepremium 3,144.54 5.76 3,144.54 5.57 3,144.54 5.47Capitalreserveforshare-basedpaymenttransactions - - - - 16.94 0.03Retainedearnings 8,463.47 15.50 8,898.21 15.77 9,422.63 16.39Othercomponentsforshareholders’equity (1,965.12) (3.60) (1,551.44) (2.75) (1,380.00) (2.40)Totalshareholders’equity 13,720.45 25.13 14,568.87 25.82 15,281.67 26.58

Totalliabilitiesandshareholders’equity 54,593.33 100.00 56,412.32 100.00 57,505.35 100.00


FINANCIAL STATEMENT SUMMARY (CONT.) (Unit:MB)

Audited Audited Audited

Items 2010 2011 2012

Amount % Amount % Amount %

Revenues Sales 125,598.92 99.83 131,978.90 99.34 140,193.02 98.90Exchangegain 71.06 0.06 90.72 0.07 0.00 -Gainonfinancialderivatives 0.00 - 516.81 0.39 1,048.74 0.74Otherincome 146.52 0.11 264.18 0.20 513.17 0.36Totalrevenues 125,816.50 100.00 132,850.61 100.00 141,754.93 100.00

Expenses Costofsales 120,901.15 96.09 127,915.41 96.29 135,642.81 96.76Sellingandadministrativeexpenses 2,911.25 2.31 3,498.78 2.31 3,994.32 2.82Exchangeloss - - - - 421.93 0.30Totalexpenses 123,812.40 98.40 131,414.19 98.60 140,059.06 99.88

Shareofprofit(loss)frominvestmentsinassociates (5.35) (0.00) 7.14 0.01 (0.05) (0.00)Profitbeforefinancecostandincometaxexpenses 1,998.75 1.59 1,443.56 1.09 1,695.82 1.20Financecost 186.30 0.15 251.00 0.19 383.87 0.27Incometaxexpenses 157.37 0.13 105.41 0.08 112.96 0.08Profitfortheyear 1,655.07 1.32 1,087.15 0.82 1,198.99 0.85

Earningspershare 0.42 0.27 0.29Netcashfrom(usedin)operationactivities 1,895.06 (3,995.18) 350.49Netcashusedininvestingactivities (2,162.16) (3,084.41) (3,637.50)Netcashfromfinancingactivities 2,523.68 2,302.49 1,563.93Netdecreaseincashandcashequivalents 2,166.31 (3,290.44) (551.88)

63

ANNUAL REPORT 2012

FINANCIAL RATIOS Items 2010 2011 2012

1.Liquidityratio Currentratio(times) 1.12 1.07 1.01 Quickratio(times) 0.88 0.73 0.73 Accountreceivableturnover(times) 4.77 4.74 5.24 Daysreceivable(days) 75.47 75.99 68.70 Inventoryturnover(times) 13.33 10.67 10.52 Averagesellingperiod(days) 27.01 33.72 34.23 Accountpayableturnover(times) 5.30 4.97 5.56 Dayspayable(days) 67.92 72.45 64.79 CashCycle(days) 34.55 37.26 38.142.Profitabilityratio Grossprofitmargin(%) 3.74 3.08 3.25 Operatingprofitmargin(%) 1.42 0.43 0.40 Netprofitmargin(%) 1.32 0.82 0.85 Returnonequity(%) 11.16 7.69 8.033.Efficiencyratio Returnonassets(%) 3.27 1.96 2.11 Returnonfixedassets(%) 43.90 24.55 21.29 Assetturnover(times) 2.48 2.38 2.464.Financialratio Debttoequityratio(times) 2.98 2.87 2.76 Interestcoverageratio(times) 10.73 5.75 4.42 Dividendpayoutratio(%) 40.93 43.00 34.025.Persharedata Bookvaluepershare(Baht) 3.36 3.57 3.75

ANALYSIS OF PERFORMANCE OVERALL PAST PERFORMANCE

In2012,theCompanystillfocusesontheexpansiontheoperationbasebothinThailandandoversea,atthe present, the Company has the subsidiaries in Thailand, China, Taiwan, Malaysia, Singapore, USA,Mexico,BrazilandPhilippines.Alltheoperationbasesaresetuptosupportthebusinessgrowthaswellasthe high demand from our customer and also to reduce the cost in order to maintain its costcompetitiveness among other competitors. Moreover, in year 2012 the Company and its subsidiarychanging the accounting policy to IFRS (International Financial Reporting Standard) to implement andleverage the account report, therefore, the figure in year 2011 and 2010 are restated to be the samestandardexceptthefigureofincomestatementinyear2010.

Thesummaryoftheperformanceofyear2010-2012areasfollows:


1. SALE REVENUES

TheCompany’ssalerevenuein2010-2012wasatBaht125,598.92million,Baht131,978.90millionandBaht140,193.02millionrespectively. In2012,theCompany’ssalerevenueswasincreasedby6.22%comparedto2011,theincreaseofsaleswasduetotheincreaseddemandinharddisk,settopboxaswelladditionalnewproductlinesinmotherboardproductsoftheCompanyanditsnewlyacquiredsubsidiaries.

2. COST OF SALES

TheCompany’scostofsalesin2010-2012wasatBaht120,901.15million,Baht127,915.41millionandBaht135,642.81millionwhichequivalentto96.26%,96.92%and96.75%ofsalerevenuesrespectively.The Company’s gross profit margin was at 3.74%, 3.08% and 3.25% respectively. The increase ofgrossprofitmarginismainlyduetodifferenceinproductmix.

3. SELLING AND ADMINISTRATIVE EXPENSES (SG&A)

The Company’s SG&A in 2010-2012 was at Baht 2,911.25 million, Baht 3,498.78 million and Baht3,994.32 million which equivalent to 2.32%, 2.65% and 2.85% of sale revenue respectively. TheincreaseofSG&Awasaresultfromtheconsolidatedexpenseofsupportingnewlyjoinedsubsidiariesoverseasaswellasmarketingandmanagingexpensetosupportexistingcustomers.

4. PROFIT

TheCompany’soperatingprofitmarginof 2010-2012wasat 1.42%,0.43%and0.40% respectively.Theoperatingprofitmargindecreasedin2012mainlycamefromtheincreaseinSG&Aexpensesasmentioned.

During2010-2012,theCompanyhadnetprofitmarginofBaht1,655.07million,Baht1,087.15millionand Baht 1,198.99 million which representing a net profit margin of 1.32%, 0.82% and 0.85%respectively.TheCompany’snetprofit increasedby10.29%fromyear2011duetothenewly joinedsubsidiariesoverseashavebeenabletostartingprovidecontributionstotheCompany.Moreover,theCompanyremainspositiveforthefutureongoinggrowth.

ANALYSIS OF FINANCIAL STATUS ASSETS

TheCompany’stotalassetsin2010-2012wasatBaht54,593.33million,Baht56,412.32millionandBaht57,505.35millionrespectively.TheincreasedBaht1,093.03millionor1.94%inyear2012whichiscomefrom the increase in property, plant and equipment by 35.75% since the Company has expanded theoperationbasebothinThailandandoverseasinyear2012.

1. Current assets

TheCompany’scurrentassetsin2010-2012wasatBaht45,697.10million,Baht44,613.55millionandBaht41,851.71millionwhichequivalentto83.71%,79.09%and72.78%oftotalassetsrespectively.In2012, theCompany’scurrentassetdecreasedbyBaht2,761.84millionor6.19%wasmainlydue tothe decreased in inventories ofBaht 2,311.29million and current investment ofBaht 416.89millionrespectively.

65

ANNUAL REPORT 2012

1.1 Tradeandotheraccountsreceivable

TheCompany’stradeandotheraccountsreceivablein2010-2012wasatBaht29,010.52million,Baht 26,703.76 million and Baht 26,803.58 million respectively. In 2012, the trade and otheraccountsreceivableincreasedby0.37%whichisquitesimilarlevelwithyear2011.

1.2 Inventory

TheCompany’s inventory in2010-2012wasatBaht9,912.79million,Baht14,053.38millionandBaht11,742.09millionrespectively. In2012,the inventorydecreasedbyBaht2,311.29millionor16.45%comparedtopreviousyear.TherawmaterialwasatBaht7,590.01million,Baht11,015.26millionandBaht7,837.11millionrespectively.In2012,therawmaterialdecreasedby28.85%from2011 and the major portion in the inventory sector is come from the raw materials whichaccounted 66.74% of the inventory and is considered reasonable proportion following CCET’sinventorypolicy.TheCompany’sinventoryandrawmaterialincreasedin2011influencedbyfloodincidentthereforetheCompanycannotdeliverproductstoourcustomerontimeasshippingplanandthissituationwasrecoverinyear2012,therefore,therawmaterialalsooverall inventoryhaddecreasedtonormallevel.

2. Non-current assets

As at 31December 2010-2012 theCompany had total non-current assets of Baht 8,896.23million,Baht 11,798.77million andBaht 15,653.64millionwhich represent 16.29%, 20.91% and 27.22%oftotal assets respectively. In 2012, the Company’s non-current assets has increased by 32.67%comparedto2011asaresultofincreasedproperty,plantandequipmentby35.75%forthecompanyexpansionbothinThailandandoversea.

SOURCE OF CAPITAL

LIABILITIES

Asat31December2010-2012,theCompanyhadtotalliabilitiesofBaht40,872.88million,Baht41,843.45millionandBaht42,223.68millionrespectively.In2012,theCompany’stotalliabilitiesincreasedby0.91%from2011mainlyduetotheincreaseinLong-termloans,netofcurrentportionforBaht784.17millioninordertosupporttheCompanyanditssubsidiariesoperation.

EQUITY

Asat31December2010-2012, theCompanyhad totalequityofBaht13,720.45million,Baht14,568.87million and Baht 15,281.67 million respectively. In 2012, the Company’s equity increased by 4.89%comparedto2011duetotheincreasedinretainedearningsforBaht524.42millionor5.89%comparedtothesameperiodlastyear.


TO THE SHAREHOLDERS OF CAL-COMP ELECTRONICS (THAILAND) PUBLIC COMPANY LIMITED IhaveauditedtheaccompanyingconsolidatedfinancialstatementsofCal-CompElectronics (Thailand)PublicCompanyLimitedanditssubsidiaries,whichcomprisetheconsolidatedstatementoffinancialpositionasat31December2012,andtherelatedconsolidatedstatementsofincome,comprehensiveincome,changesinshareholders’equityandcashflowsfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation,andhavealsoauditedtheseparatefinancialstatementsofCal-CompElectronics(Thailand)PublicCompanyLimitedforthesameperiod.MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS Management is responsible for the preparation and fair presentation of these financial statements inaccordancewithThaiFinancialReportingStandards,and for such internalcontrolasmanagementdetermines isnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.AUDITOR’S RESPONSIBILITY My responsibility is to express an opinion on these financial statements based on my audit. I conductedmy audit in accordance with Thai Standards on Auditing. Those standards require that I comply with ethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement. Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor’s judgment, includingtheassessmentof therisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’spreparationandfairpresentationofthefinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements. IbelievethattheauditevidenceIhaveobtainedissufficientandappropriatetoprovideabasisformyauditopinion.OPINION Inmyopinion,thefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,thefinancialpositionofCal-CompElectronics(Thailand)PublicCompanyLimitedanditssubsidiariesandofCal-CompElectronics(Thailand)PublicCompanyLimitedasat31December2012,andtheirfinancialperformanceandcashflowsfortheyearthenendedinaccordancewithThaiFinancialReportingStandards.EMPHASIS OF MATTER I draw attention to Note 10 to the financial statements, regarding the Company having substantial productsaleandrawmaterialpurchasetransactionswithitssubsidiariesandrelatedcompanies,andNotes3and5tothefinancialstatements,regardingtheCompanyanditssubsidiarieschangingtheiraccountingpoliciesondeferredtax,functionalcurrencyandtherecordingoffinancialderivativesatfairvalue.In2012,theCompanyanditssubsidiariesearlyadoptedTAS12IncometaxandTAS21(revised2009)TheEffectsofChangesinForeignExchangeRates,andbegantherecordingoffinancialderivativesatfairvalue.TheCompanyanditssubsidiarieshaverestatedthefinancialstatementspresentedhereinforcomparativepurposesasiftheyhadalwaysrecordeddeferredtaxasset/liabilities,preparedfinancialstatementsinthefunctionalcurrency,andrecordedfinancialderivativesatfairvalue.Myopinionisnotqualifiedinrespectofthesematters.

RUNGNAPA LERTSUWANKUL CertifiedPublicAccountant(Thailand)No.3516 Ernst&YoungOfficeLimited Bangkok:21February2013

INDEPENDENTAUDITOR’S REPORT

67

ANNUAL REPORT 2012

(Unit:Baht)

CONSOLIDATED SEPARATE FINANCIAL STATEMENTS FINANCIAL STATEMENTS

As at 31 As at 31 As at 1 As at 31 As at 31 As at 1 December December January December December January Note 2012 2011 2011 2012 2011 2011

(As restated) (As restated) (As restated) (As restated)AssetsCurrentassetsCashandcashequivalents 9 1,840,184,429 1,975,170,219 5,343,688,166 172,290,595 310,858,502 1,356,930,065Currentinvestments 9 Termdepositsatfinancial institutions 110,929,975 527,824,907 449,742,940 110,684,922 111,889,273 1,005Tradeandotherreceivables 10,11 26,803,583,982 26,703,764,983 29,010,519,251 19,718,198,016 12,783,969,189 15,642,238,770Inventories 12 11,742,091,078 14,053,377,145 9,912,792,821 5,051,162,719 7,178,962,798 5,185,150,762Advancespaymentfor rawmaterials 13 340,275,957 387,146,618 326,349,034 109,101,109 112,808,775 95,134,031Othercurrentassets 14 1,014,642,031 966,268,105 654,007,136 61,038,595 102,260,879 44,609,349Totalcurrentassets 41,851,707,452 44,613,551,977 45,697,099,348 25,222,475,956 20,600,749,416 22,324,063,982Non-currentassetsLong-termloansto relatedparties 10 - - - 1,026,158,600 - -Restrictedbankdeposits 15 8,056,111 - - - - -Investmentsinassociates 16 109,967,558 133,891,730 121,569,976 - - -Investmentsinsubsidiaries 17 - - - 5,808,760,537 5,825,134,776 4,497,157,740Otherlong-terminvestments 18 52,800,783 63,820,907 86,254,747 31,435,877 25,871,235 50,149,077Property,plantandequipment 19 14,928,285,983 10,996,877,401 8,074,265,298 5,615,594,564 4,211,937,821 3,418,301,403Goodwill 131,328,455 107,398,306 102,322,674 - - -Otherintangibleassets 20 97,642,485 207,376,437 351,218,443 - - -Deferredtaxassets 30 35,013,561 22,353,289 1,405,369 19,317,592 6,112,563 1,207,383Othernon-currentassets 21 Landoccupancyrights 99,214,650 74,947,850 72,466,388 - - - Others 191,334,323 192,104,195 86,730,672 1,123,844 1,130,848 974,614Totalnon-currentassets 15,653,643,909 11,798,770,115 8,896,233,567 12,502,391,014 10,070,187,243 7,967,790,217Totalassets 57,505,351,361 56,412,322,092 54,593,332,915 37,724,866,970 30,670,936,659 30,291,854,199

Theaccompanyingnotesareanintegralpartofthefinancialstatements.

STATEMENT OF FINANCIAL POSITIONCal-Comp Electronics (Thailand) Public Company Limited and its subsidiaries As at 31 December 2012


(Unit:Baht)


As at 31 As at 31 As at 1 As at 31 As at 31 As at 1 December December January December December January Note 2012 2011 2011 2012 2011 2011

(As restated) (As restated) (As restated) (As restated)Liabilitiesandshareholders’equityCurrentliabilitiesShort-termloansfrom financialinstitutions 22,25 15,799,177,871 15,362,429,740 11,924,375,433 9,814,890,167 5,927,383,419 4,579,725,180Tradeandotherpayables 10,23 24,160,305,239 24,666,329,780 26,821,591,936 11,361,393,917 9,716,479,941 12,783,642,634Currentportionoflong-termloans25 784,168,960 - - - - -Incometaxpayable 19,418,112 26,017,871 16,718,694 1,573,193 480,404 1,316,697Excessofcostofnetassetvalue overinvestmentinsubsidiary - 19,058,789 - - - -Othercurrentliabilities 24 512,586,919 1,696,573,480 2,073,458,492 154,158,097 309,629,464 181,330,984Totalcurrentliabilities 41,275,657,101 41,770,409,660 40,836,144,555 21,332,015,374 15,953,973,228 17,546,015,495Non-currentliabilitiesProvisionforlong-term employeebenefits 26 112,241,751 64,383,149 36,735,907 76,648,129 45,009,525 36,735,907Deferredtaxliabilities 30 51,614,460 8,651,698 - - - -Long-termloans,netof currentportion 25 784,168,960 - - - - -Totalnon-currentliabilities 948,025,171 73,034,847 36,735,907 76,648,129 45,009,525 36,735,907Totalliabilities 42,223,682,272 41,843,444,507 40,872,880,462 21,408,663,503 15,998,982,753 17,582,751,402Shareholders’equitySharecapitalRegistered 4,277,556,192ordinaryshares ofBaht1each(1January 2011:4,485,386,292ordinary sharesofBaht1each) 4,277,556,192 4,277,556,192 4,485,386,292 4,277,556,192 4,277,556,192 4,485,386,292Issuedandpaidupsharecapital 4,077,556,192ordinaryshares ofBaht1each 4,077,556,192 4,077,556,192 4,077,556,192 4,077,556,192 4,077,556,192 4,077,556,192Sharepremium 3,144,543,957 3,144,543,957 3,144,543,957 3,144,543,957 3,144,543,957 3,144,543,957Capitalreserveforshare-based paymenttransactions 27 16,943,063 - - 16,943,063 - -Retainedearnings Appropriated-statutoryreserve28 511,111,587 511,111,587 511,111,587 511,111,587 511,111,587 511,111,587 Unappropriated 8,911,521,365 8,387,104,408 7,952,356,249 9,321,060,269 8,078,021,771 7,213,193,414Othercomponentsof shareholders’equity (1,380,007,075) (1,551,438,559) (1,965,115,532) (755,011,601) (1,139,279,601) (2,237,302,353)Totalshareholders’equity 15,281,669,089 14,568,877,585 13,720,452,453 16,316,203,467 14,671,953,906 12,709,102,797Totalliabilitiesand shareholders’equity 57,505,351,361 56,412,322,092 54,593,332,915 37,724,866,970 30,670,936,659 30,291,854,199


STATEMENT OF FINANCIAL POSITION

[Continued] Cal-Comp Electronics (Thailand) Public Company Limited and its subsidiaries

As at 31 December 2012

6�

ANNUAL REPORT 2012

Revenues

Sales 10 140,193,019,630 131,978,901,783 66,222,847,921 52,661,689,432Exchangegain - 90,723,286 50,755,513 -Gainonfinancialderivertives 1,048,743,691 516,806,732 - -Otherincome 513,163,757 264,181,899 42,898,526 61,301,076Totalrevenues 141,754,927,078 132,850,613,700 66,316,501,960 52,722,990,508Expenses

Costofsales 10 135,642,813,604 127,915,409,340 63,988,519,766 50,779,283,270Sellingexpenses 602,487,181 470,108,397 55,466,416 39,642,099Administrativeexpenses 3,391,833,933 3,028,667,854 198,686,232 136,728,325Exchangeloss 421,926,185 - - 192,903,470Totalexpenses 140,059,060,903 131,414,185,591 64,242,672,414 51,148,557,164Profitbeforeshareofprofit(loss)from

investmentsinassociates,financecost

andincometaxexpenses 1,695,866,175 1,436,428,109 2,073,829,546 1,574,433,344Shareofprofit(loss)frominvestments

inassociates (50,549) 7,135,578 - -Profitbeforefinancecostand

incometaxexpenses 1,695,815,626 1,443,563,687 2,073,829,546 1,574,433,344Financecost (383,868,704) (250,998,154) (154,298,940) (53,395,931)Profitbeforeincometaxexpenses 1,311,946,922 1,192,565,533 1,919,530,606 1,521,037,413Incometaxexpenses 7.16,30 (112,961,570) (105,408,383) (1,923,713) (3,800,065)Profitfortheyear 1,198,985,352 1,087,157,150 1,917,606,893 1,517,237,348

Earningspershare 32Basicearningspershare Profitattributabletoequityholders oftheCompany 0.29 0.27 0.47 0.37


INCOME STATEMENTCal-Comp Electronics (Thailand) Public Company Limited and its subsidiariesFor the year ended 31 December 2012

(Unit:Baht)


Note 2012 2011 2012 2011

(Restated) (Restated)


STATEMENT OFCOMPREHENSIVE

INCOME Cal-Comp Electronics (Thailand) Public Company Limited and its subsidiaries

For the year ended 31 December 2012

(Unit:Baht)


2012 2011 2012 2011


Profitfortheyear 1,198,985,352 1,087,157,150 1,917,606,893 1,517,237,348

Othercomprehensiveincome:

Actuariallosses (22,159,404) - (22,159,404) -Exchangedifferencesontranslationof financialstatementsinforeigncurrency 159,980,557 435,148,235 372,817,073 1,119,494,014Lossonchangesinvalueof available-for-saleinvestments - (26,839,078) - (26,839,078)Incometaxeffect 11,450,927 5,367,816 11,450,927 5,367,816Othercomprehensiveincomefortheyear 149,272,080 413,676,973 362,108,596 1,098,022,752

Totalcomprehensiveincomefortheyear 1,348,257,432 1,500,834,123 2,279,715,489 2,615,260,100


71

ANNUAL REPORT 2012

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est

equit

y eq

uity

Bala

nce

asa

t1J

anua

ry2

011

4,077

,556,1

92

3,144

,543,9

57

-51

1,111

,587

9,640

,825,2

45

(591,4

81,12

6)-

(21,43

2,242

)(61

2,913

,368)

16,76

1,123

,613

Cumu

lative

effec

tofc

hang

ein

ac

coun

tingp

olicies

(Note

6)

--

--

(1,68

8,468

,996)

(1,35

5,792

,708)

-3,5

90,54

4(1,

352,2

02,16

4)(3,

040,6

71,16

0)Ba

lanc

eas

at1

Jan

uary

201

1

-res

tate

d 4,0

77,55

6,192

3,1

44,54

3,957

-

511,1

11,58

77,9

52,35

6,249

(1,9

47,27

3,834

)-

(17,84

1,698

)(1,

965,1

15,53

2)13

,720,4

52,45

3Div

idend

paid

(Note

35)

--

--

(652,4

08,99

1)-

--

-(65

2,408

,991)

Total

comp

rehen

sivei

ncom

e

forth

eyea

r-

--

-1,0

87,15

7,150

43

5,148

,235

(21,47

1,262

)-

413,6

76,97

31,5

00,83

4,123

Bala

nce

asa

t31

Dece

mbe

r201

1 4,0

77,55

6,192

3,1

44,54

3,957

-

511,1

11,58

78,3

87,10

4,408

(1,5

12,12

5,599

)(21

,471,2

62)

(17,84

1,698

)(1,

551,4

38,55

9)14

,568,8

77,58

5Ba

lanc

eas

at1

Jan

uary

201

2 4,0

77,55

6,192

3,1

44,54

3,957

-

511,1

11,58

79,5

01,34

0,002

(12

,736,7

22)

(26,71

9,920

)(21

,432,2

42)

(60,88

8,884

)17,1

73,66

2,854

Cumu

lative

effec

tofc

hang

ein

ac

coun

tingp

olicies

(Note

6)

--

--

(1,11

4,235

,594)

(1,49

9,602

,877)

5,248

,658

3,804

,544

(1,49

0,549

,675)

(2,60

4,785

,269)

Bala

nce

asa

t1J

anua

ry2

012

-

rest

ated

4,0

77,55

6,192

3,1

44,54

3,957

-

511,1

11,58

78,3

87,10

4,408

(1,5

12,33

9,599

)(21

,471,2

62)

(17,62

7,698

)(1,

551,4

38,55

9)14

,568,8

77,58

5Div

idend

paid

(Note

35)

--

--

(652,4

08,99

1)-

--

-(65

2,408

,991)

Share

-base

dpay

ment

trans

actio

ns

(No

te27

)-

-16

,943,0

63

--

--

--

16,94

3,063

Total

comp

rehen

sivei

ncom

e

forth

eyea

r-

--

-1,1

76,82

5,948

17

1,431

,484

--

171,4

31,48

41,3

48,25

7,432

Bala

nce

asa

t31

Dece

mbe

r201

24,0

77,55

6,192

3,1

44,54

3,957

16

,943,0

63

511,1

11,58

78,9

11,52

1,365

(1,3

40,90

8,115

)(21

,471,2

62)

(17,62

7,698

)(1,

380,0

07,07

5)15

,281,6

69,08

9

STAT

EMEN

T OF

CHA

NGES

IN S

HARE

HOLD

ERS’

EQU

ITY

Cal-C

omp

Elec

tron

ics

(Tha

iland

) Pub

lic C

ompa

ny L

imite

d an

d its

sub

sidi

arie

sFo

r th

e ye

ar e

nded

31

Dece

mbe

r 20

12

The

acco

mpan

ying

notes

are

anin

tegral

part

oft

hefin

ancia

lstat

emen

ts.


(Un

it:B

aht)

SE

PARA

TE F

INAN

CIAL

STA

TEM

ENTS

Ot

her co

mpo

nent

s of

equ

ity

Ot

her co

mpr

ehen

sive

inco

me

De

ficit

Capit

al

Ex

chan

ge

on ch

ange

s

rese

rve

for

Reta

ined

earn

ings

diffe

renc

es

in va

lue o

f To

tal o

ther

Iss

ued

and

sh

are-b

ased

on

tran

slatio

n av

ailab

le-

comp

onen

ts o

f To

tal

fu

lly p

aid-up

Sh

are

paym

ent

Appr

o- Un

appr

o- of

fina

ncial

fo

r-sale

sh

areh

older

s’ sh

areh

older

s’

shar

e ca

pital

prem

ium

trans

actio

ns

priat

ed

priat

ed

stat

emen

ts

inves

tmen

ts

equit

y eq

uity

Bala

nce

asa

t1J

anua

ry2

011

4,077

,556,1

92

3,144

,543,9

57

-51

1,111

,587

7,255

,968,3

03

--

-14

,989,1

80,03

9Cu

mulat

iveef

fecto

fcha

ngei

nacc

ounti

ng

polici

es(N

ote6)

-

--

-(42

,774,8

89)

(2,23

7,302

,353)

-(2,

237,3

02,35

3)(2,

280,0

77,24

2)Ba

lanc

eas

at1

Jan

uary

201

1-r

esta

ted

4,077

,556,1

92

3,144

,543,9

57

-51

1,111

,587

7,213

,193,4

14

(2,23

7,302

,353)

-(2,

237,3

02,35

3)12

,709,1

02,79

7Ca

pital

increa

sedd

ueto

conv

ert

wa

rrants

tosh

ares

Divide

ndpa

id(No

te35

)-

--

-(65

2,408

,991)

--

-(65

2,408

,991)

Total

comp

rehen

sivei

ncom

efor

theye

ar-

--

-1,5

17,23

7,348

1,1

19,49

4,014

(21

,471,2

62)

1,098

,022,7

52

2,615

,260,1

00Ba

lanc

eas

at3

1De

cem

ber2

011

4,077

,556,1

92

3,144

,543,9

57

-51

1,111

,587

8,078

,021,7

71

(1,11

7,808

,339)

(21,47

1,262

)(1,

139,2

79,60

1)14

,671,9

53,90

6Ba

lanc

eas

at1

Jan

uary

201

2 4,0

77,55

6,192

3,1

44,54

3,957

-

511,1

11,58

78,1

15,18

5,164

-

(26,71

9,920

)(26

,719,9

20)

15,82

1,676

,980

Cumu

lative

effec

tofc

hang

eina

ccou

nting

po

licies

(Note

6)

--

--

(37,16

3,393

)(1,

117,8

08,33

9)5,2

48,65

8(1,

112,5

59,68

1)(1,

149,7

23,07

4)Ba

lanc

eas

at1

Jan

uary

201

2-r

esta

ted

4,077

,556,1

92

3,144

,543,9

57

-51

1,111

,587

8,078

,021,7

71

(1,11

7,808

,339)

(21,47

1,262

)(1,

139,2

79,60

1)14

,671,9

53,90

6Div

idend

paid

(Note

35)

--

--

(652,4

08,99

1)-

--

(652,4

08,99

1)Sh

are-ba

sedp

ayme

nttra

nsac

tions

(Note

27)

--

16,94

3,063

-

--

--

16,94

3,063

Total

comp

rehen

sivei

ncom

efor

theye

ar-

--

-1,8

95,44

7,489

38

4,268

,000

-38

4,268

,000

2,279

,715,4

89Ba

lanc

eas

at3

1De

cem

ber2

012

4,07

7,556

,192

3,144

,543,9

57

16,94

3,063

51

1,111

,587

9,321

,060,2

69

(733,5

40,33

9)(21

,471,2

62)

(755,0

11,60

1)16

,316,2

03,46

7

STAT

EMEN

T OF

CHA

NGES

IN S

HARE

HOLD

ERS’

EQU

ITY

Cal-C

omp

Elec

tron

ics

(Tha

iland

) Pub

lic C

ompa

ny L

imite

d an

d its

sub

sidi

arie

sFo

r th

e ye

ar e

nded

31

Dece

mbe

r 20

12

The

acco

mpan

ying

notes

are

anin

tegral

part

oft

hefin

ancia

lstat

emen

ts.

73

ANNUAL REPORT 2012

CashflowsfromoperatingactivitiesProfitbeforetax 1,311,946,922 1,192,565,533 1,919,530,606 1,521,037,413Adjustmentstoreconcileprofitbeforetaxtonetcash providedby(paidfrom)operatingactivities Depreciationandamortisation 1,979,215,092 1,612,106,487 777,200,111 771,231,110 Allowancefordoubtfulaccounts 359,307,684 90,090,157 3,010,861 - Reductionofinventorytonetrealisable value(Reverse) 46,911,831 10,219,502 32,775,770 (778,923) Loss(gain)ondisposalofproperty,plant andequipment 10,034,464 36,612,007 (9,486,313) (14,709,441) Impairmentlossofassets(Reverse) 16,567,675 41,336,592 5,631,233 (3,095,396) Shareofloss(profit)frominvestmentsinassociates 50,549 (7,135,578) - - Lossondisposalofotherlong-terminvestment 14,142,833 - - - Provisionforlong-termemployeebenefits 27,399,036 22,458,378 11,773,149 8,509,018 Share-basedpaymenttransactions 16,943,063 - 3,189,128 - Gainonfinancialderivatives (1,048,743,691) (516,806,732) - - Unrealisedexchangeloss(gain) (12,653,195) 2,040,843 (8,084,058) 2,298,225 Interestincome (18,254,492) (18,325,987) (4,905,269) (3,872,970) Interestexpense 366,296,373 203,722,384 145,016,328 43,741,187Profitfromoperatingactivitiesbeforechangesin operatingassetsandliabilities 3,069,164,144 2,668,883,586 2,875,651,546 2,324,360,223Operatingassets(increase)decrease Tradeandotherreceivables (1,359,323,443) 2,508,308,574 (7,489,001,474) 3,660,797,343 Inventories 1,891,595,712 (3,976,086,268) 1,876,709,531 (1,668,892,877) Advancespaymentforrawmaterials 36,748,169 (65,677,221) 7,157,961 (4,005,722) Othercurrentassets (117,981,558) (295,781,292) 169,702,434 (52,660,893)Operatingliabilitiesincrease(decrease) Tradeandotherpayables (2,986,677,245) (4,803,630,880) 1,584,608,546 (3,747,708,415) Othercurrentliabilitiesand othernon-currentliabilities (120,569,058) 66,445,968 (156,363,419) 115,139,804Cashflowsfrom(usedin)operatingactivities 412,956,721 (3,897,537,533) (1,131,534,875) 627,029,463 Cashpaidforcorporateincometax (62,469,725) (97,642,575) (3,445,850) (3,665,064)Netcashfrom(usedin)operatingactivities 350,486,996 (3,995,180,108) (1,134,980,725) 623,364,399Theaccompanyingnotesareanintegralpartofthefinancialstatements.

STATEMENT OF CASH FLOWSCal-Comp Electronics (Thailand) Public Company Limited and its subsidiaries For the year ended 31 December 2012

(Unit:Baht)


2012 2011 2012 2011



STATEMENT OF CASH FLOWS [Continued]

Cal-Comp Electronics (Thailand) Public Company Limited and its subsidiariesFor the year ended 31 December 2012

(Unit:Baht)


2012 2011 2012 2011


CashflowsfrominvestingactivitiesIncreaseinrestrictedbankdeposits (8,056,111) - - -Increaseininvestmentsofsubsidiaries - - (208,300,908) (1,062,101,560)Acquisitionofasubsidiary,netofcashacquired - (119,671,483) - -Increaseinloanstorelatedparties - - (1,064,593,000) -Increaseinotherlong-terminvestments (7,486,280) - (7,486,280) -Increaseinproperty,plantandequipment (4,002,512,313) (3,248,793,862) (2,339,217,146) (945,391,068)Interestincome 18,254,492 18,325,987 4,905,269 3,872,970Proceedsfromsalesofequipment 445,086,935 297,794,345 327,953,205 149,597,661Increaseinothernon-currentassets (82,786,490) (32,062,265) (30,007) (101,320)Netcashusedininvestingactivities (3,637,499,767) (3,084,407,278) (3,286,768,867) (1,854,123,317)CashflowsfromfinancingactivitiesIncreaseinshort-termloansfromfinancialinstitutions 2,874,593,191 3,126,620,997 4,163,012,074 1,085,579,332Cashreceiptfromlong-termloans 629,676,000 - - -Repaymentoflong-termloans (883,419,840) - - -Interestexpense (404,512,957) (171,718,478) (142,434,121) (45,345,635)Dividendspaid (652,408,991) (652,408,991) (652,408,991) (652,408,991)Netcashfromfinancingactivities 1,563,927,403 2,302,493,528 3,368,168,962 387,824,706Increase(decrease)intranslationadjustment 1,171,204,646 1,486,657,878 913,808,372 (91,249,083)Netdecreaseincashandcashequivalents (551,880,722) (3,290,435,980) (139,772,258) (934,183,295)Cashandcashequivalentsatbeginningofyear 2,502,995,126 5,793,431,106 422,747,775 1,356,931,070Cashandcashequivalentsatendofyear(Note9) 1,951,114,404 2,502,995,126 282,975,517 422,747,775Supplementalcashflowsinformation:-Non-cashitemsconsistof:- Unrealisedlossonchangeinthevalue ofinvestment - 21,471,262 - 21,471,262 Purchaseofplantandequipmentthat hasnotyetbeenpaid 3,238,211,284 1,671,971,138 358,044,302 689,612,575 Saleplantandequipmentthathasnotyetreceived 96,523,788 297,687,648 31,211,405 133,631,646 Transfershort-termloanstolong-termloans 1,822,081,760 - - -


75

ANNUAL REPORT 2012

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. GENERAL INFORMATION Cal-CompElectronics(Thailand)PublicCompanyLimited(“theCompany”)isapubliccompanyincorporated

anddomiciledinThailand.ItsmajorshareholderisKinpoElectronics,Inc.,whichwasincorporatedinTaiwan.TheCompanyisprincipallyengagedinthemanufactureofelectronicproducts,suchascomputerandcomputerperipheral,telecommunicationequipmentandautomationequipment.TheregisteredoftheCompanyis191/54,191/5718thFloor,CTITower,RachadapisekRoad,KwangKlongtoey,KhetKlongtoey,Bangkok10110.TheCompanyhas4branchesinThailandandislocatedatSamutsakorn,PetchaburiandNakhonratsima.

2. BASIS OF PREPARATION 2.1 Thefinancialstatementshavebeenpreparedinaccordancewithaccountingstandardsenunciatedunder

theAccountingProfessionsActB.E.2547andtheirpresentationhasbeenmadeincompliancewiththestipulationsoftheNotificationoftheDepartmentofBusinessDevelopmentdated28September2011,issuedundertheAccountingActB.E.2543.

ThesefinancialstatementsarepresentedinThaiBahtwhichisdifferentfromthefunctionalcurrencyoftheCompany,whichisUSD.ThepresentationisinThaiBahtinaccordancewiththeregulatoryrequirementsinThailand.

TheUSDfunctionalcurrencyfinancialstatementsaretranslatedintotheThaiBahtpresentationcurrencyfinancialstatementsattherateofexchangeprevailingontheendofreportingperiodinrespectofassetsandliabilities,andataratethatapproximatestheactualrateatthedateofthetransactioninrespectofrevenuesandexpenses,differencesbeingrecordedas“Exchangedifferencesontranslationoffinancialstatements”inothercomprehensiveincome,othercomponentsofshareholders’equity.

ThefinancialstatementsinThailanguagearetheofficialstatutoryfinancialstatementsoftheCompany.The financial statements in English language have been translated from the Thai language financialstatements.

Thefinancialstatementshavebeenpreparedonahistoricalcostbasisexceptwhereotherwisedisclosedintheaccountingpolicies.

2.2 Basisofconsolidation a) The consolidated financial statements include the financial statements of Cal-Comp Electronics

(Thailand)PublicCompanyLimited(“theCompany”)andthefollowingsubsidiarycompanies(“thesubsidiaries”).

Cal-Comp Electronics (Thailand) Public Company Limited and its subsidiariesFor the year ended 31 December 2012


Audited by other auditorsLogistarInternational Groupcompany’sdistributor BritishVirginIsland 100 100 HoldingCo.,Ltd. Cal-CompElectronics Manufactureofelectronic ThePeople’s 100 100 (Suzhou)Co.,Ltd. products RepublicofChinaCal-CompOpticalElectronics Manufactureofelectronic ThePeople’s 100 100 (Suzhou)Co.,Ltd. products RepublicofChinaCal-CompElectronics& Purchasingmaterialand Taiwan 100 100 CommunicationsCo.,Ltd. researchanddevelopmentCal-CompTechnology Manufactureof ThePeople’s 100 100 (Suzhou)Co.,Ltd. electronicproducts RepublicofChinaCal-CompElectronicsand Manufactureofelectronic ThePeople’s 100 100 Communications(Suzhou) products RepublicofChina Co.,Ltd.Cal-CompElectronics(USA) Manufactureofelectronic USA 100 100 Co.,Ltd.anditssubsidiaries productsCal-CompIndustriaeComercio Manufactureofelectronic Brazil 100 100 deElectronicaeInformatica products Ltda.Cal-CompElectronicsde Manufactureofelectronic Mexico 100 100 MexicoCo.,S.A.deC.V. products

Audited by other auditors of the same firmCal-CompPrecision(Singapore)Manufactureanddistributor Singapore 100 100 Limitedanditssubsidiaries ofplasticcomponentsCalComp(Malaysia)SDN. Manufactureofelectronic Malaysia 100 100 BHD. productsNewKinpoGroupTechnology Manufactureofelectronic Philippines 100 - (Phillipines),Inc. products

Nature of Country of Percentage of Company’s name business incorporation shareholding

2012 2011 Percent Percent

77

ANNUAL REPORT 2012

Thefinancialstatementsofthesubsidiarieswerepreparedbythemanagementofthesubsidiariesandauditedbytheiroverseasauditors.

RevenuesofLogistarInternationalHoldingCo.,Ltd.aremainlyfromsalesofgoods,whichhavebeenpurchasedfromtheCompanyanditssubsidiaries,tothirdparties.

ThesubsidiarieswhichtheCompanyownsthroughCal-CompPrecision(Singapore)Limitedareasfollows:

Cal-CompPrecision Precisionengineering ThePeople’s 100 100 (Shanghai)Co.,Ltd. plasticinjectionmoulding RepublicofChinaCal-CompPrecision Precisionengineering Malaysia 100 100(Malaysia)SdnBhd plasticinjectionmouldingCal-CompPrecision Precisionengineering Thailand 100 100 (Thailand)Limited plasticinjectionmouldingCal-CompPrecision Precisionengineering ThePeople’s 100 100 (Dongguan)Limited plasticinjectionmoulding RepublicofChinaCal-CompPrecision Precisionengineering ThePeople’s 100 100 (Wujiang)Limited plasticinjectionmoulding RepublicofChina

Percentage of Country of indirectCompany’s name Nature of business incorporation shareholding

2012 2011

Percent Percent

ThesubsidiarieswhichtheCompanyownsthroughCal-CompElectronics (USA)Co.,Ltd.areasfollows:

Cal-CompUSA(Indiana), ManufacturerofPrinted USA 100 100 Inc.(formerlyknownas CircuitBoardAssembles “TotalElectronics,LLC”)Cal-CompUSA(SanDiego), ManufacturerofPrinted USA 100 100 Inc.(formerlyknownas CircuitBoardAssembles “SMSTechnologies,Inc.”)

Percentage of Country of indirectCompany’s name Nature of business incorporation shareholding

2012 2011

Percent Percent


b) Subsidiariesarefullyconsolidated,beingthedateonwhichtheCompanyobtainscontrol,andcontinuetobeconsolidateduntilthedatewhensuchcontrolceases.

c) The financial statements of the subsidiaries are prepared using the same significant accountingpoliciesastheCompany.

d) The financialstatementsofallsubsidiariesareprepared in their respective functionalcurrencies.WherethefunctionalcurrencyisnotUSD,thefinancialstatementsaretranslatedintoUSDusingtheexchangerateprevailingontheendofreportingperiodinrespectofassetsandliabilities,andataratethatapproximatestheactualrateatthedateofthetransactioninrespectofrevenuesandexpenses.Theresultantdifferenceshavebeenshownunderthecaptionof“Exchangedifferencesontranslationoffinancialstatements”inothercomprehensiveincome,othercomponentsofshareholders’equity.

e) MaterialbalancesandtransactionsbetweentheCompanyanditssubsidiarieshavebeeneliminatedfromtheconsolidatedfinancialstatements.

2.3 Theseparatefinancialstatements,whichpresentinvestmentsinsubsidiariesandassociatesunderthecostmethod,havebeenpreparedsolelyforthebenefitofthepublic.

3. ADOPTION OF NEW ACCOUNTING STANDARDS DURING THE YEAR During2012,theCompanyelectedtoearlyadoptThaiAccountingStandard12IncomeTaxandThaiAccounting

Standard21(revised2009)TheeffectsofchangesinForeignExchangeRates.Theseaccountingstandardsareeffectiveforfiscalyearsbeginningonorafter1January2013.Thedetailsareasbelow.

TAS 12 INCOME TAX Thisaccountingstandardrequiresanentitytoidentifytemporarydifferences,whicharedifferencesbetweenthe

carryingamountofanassetorliabilityintheaccountingrecordsanditstaxbase,andtorecognisedeferredtaxassetsandliabilitiesunderthestipulatedguidelines.TheGrouphasearlyadoptedTAS12IncomeTaxwhichwouldotherwisebecomeeffectivein2013.Ithasthereforerestatedthepreviousperiod’sconsolidatedandseparatefinancialstatementsasthoughthedeferredtaxassets/liabilitieshadoriginallybeenrecorded.

Thecumulativeeffectofchangeintheaccountingpolicyhasbeenpresentedundertheheadingof“Cumulativeeffectofchangeinaccountingpolicies”intheconsolidatedandseparatefinancialstatementsofchangesinshareholders’equity.

AsummaryofhowtheseadjustmentsarisingfromTAS12haveaffectedtheGroup’sfinancialstatementsissetoutintheNote6.

TAS 21 (REVISED 200�) THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES TheGrouphasearlyadoptedTAS21 (revised2009)TheEffectsofChanges inForeignExchangeRates

whichwouldotherwisebecomeeffectivein2013.Whenareportingentitypreparesfinancialstatements,TAS21(revised2009)requireseachindividualentitytodetermineitsfunctionalcurrencyandmeasureitsresultsandfinancialpositioninthatfunctionalcurrency.TAS21(revised2009)definesthefunctionalcurrencyasthecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperatesandthepresentationcurrencyasthecurrencyinwhichthefinancialstatementsarepresented.

7�

ANNUAL REPORT 2012

TheGroupoperatesinaUSDenvironment,withpurchasesandsalespredominantlyquotedandsettledinUSD.Accordingly, themanagementdetermines thatUSD is the functionalcurrencyofGroup’soperatingentitieswhilsttheThaiBahtisitspresentationcurrency.

TAS21(revised2009)requiresalltransactionstobeinitiallyrecordedinthefunctionalcurrency,USD.AlltransactionsthatarenotdenominatedinUSDareforeigncurrencytransactions;exchangedifferencesarisingontranslationgenerallyarerecognisedinprofitorloss.Exchangedifferencesarisingfromtranslationoffunctionalcurrencytopresentationcurrencyarerecognisedinothercomprehensiveincome.Ingeneral,whentheThaiBahtpresentationcurrencyappreciatesagainsttheUSDfunctionalcurrency,thecarryingamountofassets,liabilitiesandtheexchangedifferencesontranslationofthefinancialstatementsinshareholders’equityarelikelytoreduce.Conversely,whentheThaiBahtdepreciatesagainsttheUSD,thecarryingamountsofassets,liabilitiesandtheexchangedifferencesontranslationoffinancialstatementsinequityislikelytoincrease.

TheadoptionofTAS21(revised2009)isconsideredtobeachangeinaccountingpolicyunderTAS8(revised2009)AccountingPolicies,ChangesinAccountingEstimatesandErrorswherebytheeffectsofchangesinaccountingpolicyhavebeenappliedretrospectivelyasthoughthefinancialstatementshadoriginallybeenpreparedusingUSDfunctionalcurrency.Anyotherinformationaboutpriorperiods,suchashistoricalsummariesoffinancialdata,isalsoadjustedasfarbackasispracticable.


AsummaryofadjustmentsarisingfromtheadoptionofTAS21(revised2009)whichhaveaffectedtheGroup’sfinancialstatementsissetoutintheNote6.

4. NEW ACCOUNTING STANDARDS ISSUED DURING THE YEARS NOT YET EFFECTIVE TheFederationofAccountingProfessionsissuedthefollowingnew/revisedaccountingstandardsthatare

effectiveforfiscalyearsbeginningonorafter1January2013. Accountingstandards: TAS12 IncomeTaxes TAS20(revised2009) AccountingforGovernmentGrantsandDisclosureofGovernmentAssistance TAS21(revised2009) TheEffectsofChangesinForeignExchangeRates FinancialReportingStandard: TFRS8 OperatingSegments AccountingStandardInterpretations: SIC10 GovernmentAssistance-NoSpecificRelationtoOperatingActivities SIC21 IncomeTaxes-RecoveryofRevaluedNon-DepreciableAssets SIC25 IncomeTaxes-ChangesintheTaxStatusofanEntityoritsShareholders TheCompanyadoptedTAS12andTAS21(revised2009)andSIC21andSIC25in2011.ForTAS20(revised

2009),TFRS8andSIC10,theCompany’smanagementbelievesthattheseaccountingstandardswillnothaveanysignificantimpactonthefinancialstatementsfortheyearwhentheyareinitiallyapplied.


Inaddition,theFederationofAccountingProfessionshasissuedNotificationNo.30/2555-34/2555,publishedintheRoyalGazetteon17January2013,mandatingtheuseofaccountingtreatmentguidanceandaccountingstandardinterpretationsasfollows.

Effectivedate AccountingTreatmentGuidanceforTransfersofFinancialAssets 1January2013 AccountingStandardInterpretation: SIC29 ServiceConcessionArrangements:Disclosures 1January2014 FinancialReportingStandardInterpretations: TFRIC4 DeterminingwhetheranArrangementcontainsaLease 1January2014 TFRIC12 ServiceConcessionArrangements 1January2014 TFRIC13 CustomerLoyaltyProgrammes 1January2014

ThemanagementoftheCompanyhasassessedtheeffectofthesestandardsandbelievesthatAccountingTreatmentGuidanceforTransfersofFinancialAssets,SIC29,TFRIC4andTFRIC12arenotrelevanttothebusinessoftheCompany.Managementisstillevaluatingthefirst-yearimpacttothefinancialstatementsoftheadoptionofTFRIC13andhasyettoreachaconclusion.

5. CHANGE IN ACCOUNTING POLICIES Duringthecurrentyear,theCompanychangedtheiraccountingpoliciesforshare-basedpaymentandfinancial

derivatives.Thedetailsareasfollow. TFRS 2 SHARE-BASED PAYMENT Duringthesecondquarterofthecurrentyear,theCompanyallottedwarrantsunderEmployeeStockOption

PlantoemployeesoftheCompanyanditssubsidiariesasdescribedinNote27. TheCompanyanditssubsidiariesrecognisesshare-basedpaymenttransactionswhenservicesfromemployees

arerendered,basedonthefairvalueoftheshareoptionsonthegrantdate.Theexpensesarerecordedoverthevestingperiod,inaccordancewiththeconditionsregardinglengthofservicerenderedbyemployeesstipulatedintheshare-basedpaymentplan,togetherwithacorrespondingincreasein“Capitalreserveforshare-basedpaymenttransactions”inowners’equity.

Estimatingfairvalueforshare-basedpaymenttransactionsrequiresmanagementtoexercisejudgement,andtoapplyassumptions,includingastotheexpectedlifeoftheshareoptions,sharepricevolatilityanddividendyield.

FINANCIAL DERIVATIVES Forwardcontracts,interestrateswapcontractsandoptioncontractsarepresentedinthefinancialstatements

usingthefairvalue.Duetothechangeintheaccountingpolicy,theGrouphasrestatedthepreviousperiod’sconsolidatedandseparatefinancialstatementsasthoughthederivativeshadoriginallybeenrecordedusingthefairvalue.


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ANNUAL REPORT 2012

AsummaryofadjustmentsarisingfromtheabovechangingwhichhaveaffectedtheGroup’sfinancialstatementsissetoutintheNote6.

6. Cumulative effect of changes in accounting policies due to the adoption of new accounting standards

Duringthecurrentyear,theCompanymadethechangestoitssignificantaccountingpoliciesdescribedinNotes3and5,asaresultoftheadoptionofrevisedandnewaccountingstandards.Thecumulativeeffectofthechangesintheaccountingpolicieshasbeenseparatelypresentedinthestatementsofchangesinshareholders’equity.

Theamountsofadjustmentsaffectingthestatementoffinancialpositionasat31December2011andthestatementofincomefortheyearended31December2011aresummarisedbelow.

(Unit:ThousandBaht)

Statement of financial position as at 31 December 2011 Consolidated financial statements Separate financial statements Effect of the Effect of the changes in changes in As previously accounting As previously accounting reported policies As restated reported policies As restated

AssetsCashandcashequivalents 1,962,687 12,483 1,975,170 309,478 1,381 310,859Currentinvestments 531,803 (3,978) 527,825 111,393 496 111,889Tradeandotherreceivables 26,667,244 36,521 26,703,765 12,727,212 56,757 12,783,969Short-termloanstorelated 248 (248) - - - - parties Inventories 14,088,762 (35,385) 14,053,377 7,153,744 25,219 7,178,963Advancespaymentforraw 431,033 (43,886) 387,147 138,268 (25,459) 112,809 materials Othercurrentassets 1,046,188 (79,920) 966,268 98,791 3,470 102,261Totalcurrentassets 44,727,965 (114,413) 44,613,552 20,538,886 61,864 20,600,750Investmentsinassociates 132,213 1,680 133,893 - - -Investmentsinsubsidiaries - - - 6,173,429 (348,294) 5,825,135Otherlong-terminvestments 63,420 401 63,821 25,386 485 25,871Property,plantand 12,579,855 (1,582,978) 10,996,877 5,152,864 (940,926) 4,211,938 equipment Goodwill 106,518 880 107,398 - - -Otherintangibleassets 207,376 - 207,376 - - -Deferredtaxassets - 22,353 22,353 - 6,113 6,113Othernon-currentassets 225,105 41,947 267,052 1,126 4 1,130Totalnon-currentassets 13,314,487 (1,515,717) 11,798,770 11,352,805 (1,282,618) 10,070,187

Totalassets 58,042,452 (1,630,130) 56,412,322 31,891,691 (1,220,754) 30,670,937


LiabilitiesShort-termloansfrom 15,402,693 (40,263) 15,362,430 5,953,699 (26,315) 5,927,384 financialinstitutionsTradeandotherpayables 24,725,868 (59,539) 24,666,329 9,759,618 (43,138) 9,716,480Incometaxpayable 28,501 (2,483) 26,018 483 (3) 480Excessofcostofnetasset 18,007 1,052 19,059 - - - valueoverinvestmentin subsidiary Othercurrentliabilities 629,139 1,067,435 1,696,574 311,005 (1,376) 309,629Totalcurrentliabilities 40,804,208 966,202 41,770,410 16,024,805 (70,832) 15,953,973Provisionforlong-term 64,581 (197) 64,384 45,209 (199) 45,010 employeebenefitsDeferredtaxliabilities - 8,651 8,651 - - -Totalnon-currentliabilities 64,581 8,454 73,035 45,209 (199) 45,010Totalliabilities 40,868,789 974,656 41,843,445 16,070,014 (71,031) 15,998,983Shareholders’equitySharecapital 4,077,556 - 4,077,556 4,077,556 - 4,077,556Sharepremium 3,144,544 - 3,144,544 3,144,544 - 3,144,544Retainedearnings 511,111 - 511,111 511,111 - 511,111 -appropriatedRetainedearnings- 9,501,340 (1,114,236) 8,387,104 8,115,185 (37,163) 8,078,022 unappropriatedOthercomponentsof (60,888) (1,490,550) (1,551,438) (26,719) (1,112,560) (1,139,279) shareholders’equityTotalshareholders’equity 17,173,663 (2,604,786) 14,568,877 15,821,677 (1,149,723) 14,671,954Totalliabilitiesand 58,042,452 (1,630,130) 56,412,322 31,891,691 (1,220,754) 30,670,937 shareholders’equity

(Unit:ThousandBaht)

Statement of financial position as at 31 December 2011 Consolidated financial statements Separate financial statements Effect of the Effect of the changes in changes in As previously accounting As previously accounting reported policies As restated reported policies As restated

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ANNUAL REPORT 2012

RevenuesSales 131,809,659 169,243 131,978,902 52,441,071 220,618 52,661,689Exchangegain 165,984 (75,261) 90,723 - - -Gainonfinancialderivatives - 516,807 516,807 - - -Otherincome 273,142 (8,960) 264,182 61,044 257 61,301Totalrevenues 132,248,785 601,829 132,850,614 52,502,115 220,875 52,722,990ExpensesCostofsales 127,961,155 (45,746) 127,915,409 50,566,551 212,732 50,779,283Sellingexpenses 471,124 (1,015) 470,109 39,476 166 39,642Administrativeexpenses 2,974,604 54,064 3,028,668 136,156 573 136,729Exchangeloss - - - 192,095 808 192,903Totalexpenses 131,406,883 7,303 131,414,186 50,934,278 214,279 51,148,557

(Unit:ThousandBaht)

Income statement for the year ended 31 December 2011 Consolidated financial statements Separate financial statements Effect of the Effect of the changes in changes in

As previously accounting As previously accounting reported policies As restated reported policies As restated

Profitbeforeshareofprofit 841,902 594,526 1,436,428 1,567,837 6,596 1,574,433 frominvestmentsin associates,financecost andincometaxexpensesShareofprofitfrom 7,136 (1) 7,135 - - - investmentsinassociatesProfitbeforefinancecost 849,038 594,525 1,443,563 1,567,837 6,596 1,574,433 andincometaxexpensesFinancecost (227,114) (23,884) (250,998) (53,172) (224) (53,396)Profitbeforeincometax 621,924 570,641 1,192,565 1,514,665 6,372 1,521,037 expensesIncometaxexpenses (109,000) 3,592 (105,408) (3,039) (761) (3,800)Profitfortheyear 512,924 574,233 1,087,157 1,511,626 5,611 1,517,237

(Unit:ThousandBaht)

Income statement for the year ended 31 December 2011 Consolidated financial statements Separate financial statements Effect of the Effect of the changes in changes in

As previously accounting As previously accounting reported policies As restated reported policies As restated


7. SIGNIFICANT ACCOUNTING POLICIES 7.1 REVENUE AND EXPENSE RECOGNITION SALES OF GOODS Salesofgoodsarerecognisedwhenthesignificantrisksandrewardsofownershipofthegoodshave

passedtothebuyer.Salesaretheinvoicedvalue,excludingvalueaddedtax,ofgoodssuppliedafterdeductingdiscountsandallowances.

INTEREST INCOME Interestincomeisrecognisedonanaccrualbasisbasedontheeffectiveinterestrate. EXPENSES Expensesarerecognisedonanaccrualbasis. 7.2 CASH AND CASH EQUIVALENTS Cashandcashequivalentsconsistofcashinhandandatbanks,andallhighlyliquidinvestmentswith

anoriginalmaturityofthreemonthsorlessandnotsubjecttowithdrawalrestrictions. 7.3 TRADE ACCOUNTS RECEIVABLE, OTHER RECEIVABLES AND ALLOWANCE FOR DOUBTFUL

ACCOUNTS Tradeaccountsreceivableandotherreceivablesarestatedatthenetrealisablevalue.Allowancefor

doubtfulaccountsisprovidedfortheestimatedlossesthatmaybeincurredincollectionofreceivables.Theallowanceisgenerallybasedoncollectionexperiencesandanalysisofdebtaging.

7.4 INVENTORIES Finishedgoodsandworkinprocessarevaluedatthelowerofcost(averagemethod)andnetrealisable

value.Thecostincludesallproductioncostsandattributablefactoryoverheads. Rawmaterials,sparepartsandfactorysuppliesarevaluedatthelowerofaveragecostandnetrealised

valueandarechargedtoproductioncostswheneverconsumed. 7.5 INVESTMENTS a) Investmentsinavailable-for-salesecuritiesarestatedatfairvalue.Changesinthefairvalueofthese

securitiesarerecordedincomprehensiveincome,andwillberecordedinprofitorlosswhenthesecuritiesaresold.

b) Investmentsinnon-marketableequitysecurities,whichtheCompanyclassifiesasotherinvestments,arestatedatcostnetofallowanceforimpairmentloss(ifany).

c) Investmentsinassociatesareaccountedforintheconsolidatedfinancialstatementsusingtheequitymethod.

d) Investmentsinsubsidiariesandassociatesareaccountedforintheseparatefinancialstatementsusingthecostmethod.

Thefairvalueofmarketablesecuritiesisbasedonthelatestbidpriceofthelastworkingdayoftheyear. Theweightedaveragemethodisusedforcomputationofthecostofinvestments. 7.6 PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION Landisstatedatcost.Buildingsandequipmentarestatedatcostlessaccumulateddepreciationand

allowanceforlossonimpairmentofassets(ifany).Depreciationofplantandequipmentiscalculatedbyreferencetotheircostsonastraight-linebasisoverthefollowingestimatedusefullives:

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Buildingsandbuildingimprovements - 11-50years Machineryandequipment - 5-10 years Moldsandspareparts - 1-2 years Officefurnitureandequipment - 5-11 years Motorvehicles - 5-10 years Miscellaneousequipmentandresearchanddevelopmentequipment - 1-7 years Depreciationisincludedindeterminingincome. Nodepreciationisprovidedonland,landimprovement,constructioninprogressandequipmentunder

installation. Anitemofproperty,plantandequipmentisderecognisedupondisposalorwhennofutureeconomic

benefitsareexpectedfromitsuseordisposal.Anygainorlossarisingondisposalofanassetisincludedinprofitorlosswhentheassetisderecognised.

7.7 BORROWING COSTS Borrowing costs directly attributable to the acquisition, construction or production of an asset that

necessarilytakesasubstantialperiodoftimetogetreadyforitsintendeduseorsalearecapitalisedaspartofthecostoftherespectiveassets.Allotherborrowingcostsareexpensedintheperiodtheyareincurred.Borrowingcostsconsistofinterestandothercoststhatanentityincursinconnectionwiththeborrowingoffunds.

7.8 INTANGIBLE ASSETS Intangibleassetsacquiredthroughbusinesscombinationare initially recognisedat their fairvalueon

thedateofbusinessacquisitionwhileintangibleassetsacquiredinothercasesarerecognisedatcost.Followingtheinitialrecognition,theintangibleassetsarecarriedatcostlessanyaccumulatedamortisationandanyaccumulatedimpairmentlosses(ifany).

Intangibleassetswithfinitelivesareamortisedonasystematicbasisovertheeconomicusefullifeandtestedfor impairmentwheneverthere isanindicationthattheintangibleassetmaybeimpaired.Theamortisationperiodandtheamortisationmethodofsuchintangibleassetarereviewedatleastateachfinancialyearend.Theamortisationexpenseischargedtoprofitorloss.

Asummaryoftheintangibleassetswithfiniteusefullivesisasfollows. Usefullives Landoccupancyrights - contractperiodof50yearsand75years Patents - 5years Customerlist - 7-10years 7.� GOODWILL Goodwillisinitiallyrecordedatcost,whichequalstotheexcessofcostofbusinesscombinationover

thefairvalueofthenetassetsacquired.Ifthefairvalueofthenetassetsacquiredexceedsthecostofbusinesscombination,theexcessisimmediatelyrecognisedasgaininprofitorloss.

Goodwilliscarriedatcostlessanyaccumulatedimpairmentlosses.Goodwillistestedforimpairmentannuallyandwhencircumstancesindicatethatthecarryingvaluemaybeimpaired.


Forthepurposeofimpairmenttesting,goodwillacquiredinabusinesscombinationisallocatedtoeachoftheCompany’scashgeneratingunits(orgroupofcash-generatingunits)thatareexpectedtobenefitfromthesynergiesofthecombination.TheCompanyanditssubsidiariesestimatetherecoverableamountofeachcash-generatingunit(orgroupofcash-generatingunits)towhichthegoodwillrelates.Wheretherecoverableamountofthecash-generatingunitislessthanthecarryingamount,animpairmentlossisrecognisedinprofitorloss.Impairmentlossesrelatingtogoodwillcannotbereversedinfutureperiods.

7.10 RELATED PARTY TRANSACTIONS Relatedpartiescompriseenterprisesandindividualsthatcontrol,orarecontrolledbytheCompany,

whetherdirectlyorindirectly,orwhichareundercommoncontrolwiththeCompany. Theyalsoincludeassociatesandindividualswhichdirectlyorindirectlyownavotinginterestinthe

CompanythatgivesthemsignificantinfluenceovertheCompany,keymanagementpersonnel,directors,andofficerswithauthorityintheplanninganddirectionoftheCompany’soperations.

7.11 LONG-TERM LEASES Leasesofproperty,plantandequipmentwhichdonottransfersubstantiallyalltherisksandrewardsof

ownershipareclassifiedasoperatingleases.Operatingleasepaymentsarerecognisedasanexpenseinprofitorlossonastraightlinebasisovertheleaseterm.

7.12 FOREIGN CURRENCIES TheGroup’sfinancialstatementsarepresentedinThaiBaht,whichisdifferentfromtheGroup’sfunctional

currencyofUSD.EachentityintheGroupdeterminesitsownfunctionalcurrencyanditemsincludedinthefinancialstatementsofeachentityaremeasuredusingthatfunctionalcurrency.

a) Transactionsandbalances TransactionsinforeigncurrenciesareinitiallyrecordedbytheGroupentitiesattheirrespective

functionalcurrency.Foreigncurrencytransactionsduringaparticularmontharetranslated intofunctionalcurrencyattheaverageexchangeratesrulingduringtheprevioustransactionmonth.

Monetaryassetsandliabilitiesdenominatedinforeigncurrenciesareretranslatedintofunctionalcurrencyattheexchangeraterulingattheendofreportingperiod.Alldifferencesaretakentoprofitorloss.

Non-monetaryitemsthataremeasuredintermsofhistoricalcostinaforeigncurrencyaretranslatedusingtheexchangeratesasatthedatesoftheinitialtransactions.Non-monetaryitemsmeasuredatfairvalueinaforeigncurrencyaretranslatedusingtheexchangeratesatthedatewhenthefairvalueisdetermined.

b) Groupcompanies TheassetsandliabilitiesofGroupcompanieswhosefunctionalcurrencyisnotUSDaretranslated

intoUSDattheexchangeraterulingattheendofreportingperiodandtheirincomestatementsandstatementsofcomprehensiveincomearetranslatedataratethatapproximatestheactualrateatthedateofthetransaction.

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ANNUAL REPORT 2012

Theexchangedifferencesarisingonthetranslationarerecognisedinothercomprehensiveincome.Ondisposalofaforeignoperation,thecomponentofothercomprehensiveincomerelatingtothatparticularforeignoperationisrecognisedinprofitorloss.

7.13 IMPAIRMENT OF ASSETS Attheendofeachreportingperiod,theCompanyanditssubsidiariesperformimpairmentreviewsin

respectoftheproperty,plantandequipmentandotherintangibleassetswhenevereventsorchangesincircumstancesindicatethatanassetmaybeimpaired.TheCompanyanditssubsidiariesalsocarryoutannual impairment reviews in respectofgoodwill.An impairment loss is recognisedwhen therecoverableamountofanasset,whichisthehigheroftheasset’sfairvaluelesscoststosellanditsvalueinuse,islessthanthecarryingamount.

Animpairmentlossisrecognisedinprofitorloss. 7.14 EMPLOYEE BENEFITS SHORT-TERM EMPLOYEE BENEFITS Salaries,wages,bonusandcontributionstothesocialsecurityfundarerecognisedasexpenseswhen

incurred. POST-EMPLOYMENT BENEFITS Definedcontributionplans

The Company and its employees have jointly established a provident fund. The fund is monthlycontributedbyemployeesandbytheCompany.Thefund’sassetsareheldinaseparatetrustfundandtheCompany’scontributionsarerecognisedasexpenseswhenincurred.

Definedbenefitplans

TheCompanyhasobligationsinrespectoftheseverancepaymentsitmustmaketoemployeesuponretirementunderlaborlaw.TheCompanytreatstheseseverancepaymentobligationsasadefinedbenefitplan.

Theobligationunderthedefinedbenefitplanisdeterminedbasedonactuarialtechniques,usingtheprojectedunitcreditmethod.

Actuarialgainsandlossesarisingfrompost-employmentbenefitsarerecognisedimmediatelyinothercomprehensiveincome.

The defined benefits liability comprises the present value of the defined benefit obligation, lessunrecognisedpastservicecost,unrecognisedactuarialgainsorlossesandthefairvalueofplanassetsoutofwhichtheobligationsaretobesettled.Planassetsareassetsthatareheldbyalong-termemployeebenefitfundorqualifyinginsurancepolicies.PlanassetsarenotavailabletothecreditorsoftheGroup,norcantheybepaiddirectlytotheGroup.

Forthefirst-timeadoptionofTAS19EmployeeBenefitsin2011,theCompanyelectedtorecognisethetransitionalliability,whichexceedstheliabilitythatwouldhavebeenrecognisedatthesamedateunderthepreviousaccountingpolicy,throughanadjustmenttothebeginningbalanceofretainedearningsin2011.


7.15 PROVISIONS ProvisionsarerecognisedwhentheCompanyanditssubsidiarieshaveapresentobligationasaresult

ofapastevent,itisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligation,andareliableestimatecanbemadeoftheamountoftheobligation.

7.16 INCOME TAX Incometaxexpensefortheyearcomprisescurrentanddeferredtax.IncometaxoftheCompanyand

subsidiariesinThailandisprovidedforintheaccountsbasedonthetaxableincomedeterminedinaccordancewithtaxlegislationinThailand.Overseassubsidiariescalculatecorporateincometaxinaccordancewiththemethodandtaxratesstipulatedbytaxlawsinthosecountries.

CURRENT TAX Current incometax isprovidedintheaccountsat theamountexpectedtobepaidtothetaxation

authorities,basedontaxableprofitsdeterminedinaccordancewithtaxlegislation. DEFERRED TAX Deferredincometaxisprovidedontemporarydifferencesbetweenthetaxbasesofassetsandliabilities

andtheircarryingamountsattheendofeachreportingperiod,usingthetaxratesenactedattheendofthereportingperiod.

TheCompanyanditssubsidiariesrecognisedeferredtaxliabilitiesforalltaxabletemporarydifferenceswhiletheyrecognisedeferredtaxassetsforalldeductibletemporarydifferencesandtaxlossescarriedforwardtotheextentthatitisprobablethatfuturetaxableprofitwillbeavailableagainstwhichsuchdeductibletemporarydifferencesandtaxlossescarriedforwardcanbeutilised.

Ateachreportingdate,theCompanyanditssubsidiariesreviewandreducethecarryingamountofdeferredtaxassetstotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthedeferredtaxassettobeutilised.

TheCompanyanditssubsidiariesrecorddeferredtaxdirectlytoshareholders’equityifthetaxrelatestoitemsthatarerecordeddirectlytoshareholders’equity.

7.17 DERIVATIVES Thesubsidiariesusederivativefinancialinstrumentssuchasforwardcurrencycontracts,crosscurrency

andinterestrateswapsandcurrencyoptionagreementstomanagetheirrisksassociatedwithforeigncurrencyandinterestratefluctuations.

Suchderivativefinancialinstrumentsareinitiallyrecognisedatcostonthedateonwhichaderivativecontractisenteredintoandaresubsequentlyremeasuredatfairvalue.Derivativefinancialinstrumentsaseitherassetsorliabilitiesarerecognisedinthefinancialpositionatfairvalue.Thegainorlossonremeasurementtofairvalueisrecognisedimmediatelyinprofitorloss.

Thefairvalueofforwardcurrencycontracts,crosscurrencyandinterestrateswapandcurrencyoptionagreementsaretheirquotedmarketpriceattheendofreportingperiod,beingthepresentvalueofthequotedinterestrate,forwardpriceandoptionprice.

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ANNUAL REPORT 2012

8. SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES Thepreparationof financial statements in conformitywith financial reporting standards at times requires

managementtomakesubjectivejudgmentsandestimatesregardingmattersthatareinherentlyuncertain.Thesejudgmentsandestimatesaffectreportedamountsanddisclosuresandactualresultscoulddifferfromtheseestimates.Significantjudgmentsandestimatesareasfollows:

LEASES Indeterminingwhetheraleaseistobeclassifiedasanoperatingleaseorfinancelease,managementis

requiredtousejudgmentregardingwhethersignificantriskandrewardsofownershipoftheleasedassethasbeentransferred,takingintoconsiderationtermsandconditionsofthearrangement.

ALLOWANCE FOR DOUBTFUL ACCOUNTS Indetermininganallowancefordoubtfulaccounts,themanagementneedstomakejudgmentandestimates

basedupon,amongotherthings,pastcollectionhistory,agingprofileofoutstandingdebtsandtheprevailingeconomiccondition.

ALLOWANCE FOR DIMINUTION IN VALUE OF INVENTORY Thedeterminationofallowance fordiminution in thevalueof inventory requiresmanagement toexercise

judgmentinestimatinglossesonoutstandinginventory,basedonthesellingpriceexpectedintheordinarycourse of business; minus selling expenses and provision for obsolete, slow-moving and deterioratedinventories,andtakingintoaccounttheapproximateusefullifeofeachtypeofinventoryandcurrentchangesintechnology.

IMPAIRMENT OF EQUITY INVESTMENTS TheCompanyanditssubsidiariestreatavailable-for-saleinvestmentsandotherinvestmentsasimpairedwhen

therehasbeenasignificantorprolongeddeclineinthefairvaluebelowtheircostorwhereotherobjectiveevidenceofimpairmentexists.Thedeterminationofwhatis“significant”or“prolonged”requiresjudgmentofthemanagement.

PROPERTY, PLANT AND EQUIPMENT/DEPRECIATION Indeterminingdepreciationofplantandequipment,themanagementisrequiredtomakeestimatesofthe

usefullivesandresidualvaluesoftheplantandequipmentandtoreviewestimateusefullivesandresidualvalueswhenthereareanychanges.

GOODWILL AND INTANGIBLE ASSETS Theinitialrecognitionandmeasurementofgoodwillandotherintangibles,andsubsequentimpairmenttesting,

requiresmanagementtomakeestimatesofcashflowstobegeneratedbytheassetorthecashgeneratingunitsandtochooseasuitablediscountrateinordertocalculatethepresentvalueofthosecashflows.

DEFERRED TAX ASSETS Deferredtaxassetsarerecognisedfordeductibletemporarydifferencesandunusedtaxlossestotheextent

thatitisprobablethattaxableprofitwillbeavailableagainstwhichtemporarydifferencesandlossescanbeutilised.Significantmanagementjudgmentisrequiredtodeterminetheamountofdeferredtaxassetsthatcanberecognised,baseduponthelikelytimingandlevelofestimatefuturetaxableprofits.

�0CAL-COMP ELECTRONICS (THAILAND) PUBLIC COMPANY LIMITED

POST-EMPLOYMENT BENEFITS UNDER DEFINED BENEFIT PLAN Theobligationunderthedefinedbenefitplanisdeterminedbasedonactuarialtechniques.Suchdetermination

ismadebasedonvariousassumptions,includingdiscountrate,futuresalaryincreaserate,mortalityrateandstaffturnoverrate.

�. CASH AND CASH EQUIVALENTS/STATEMENTS OF CASH FLOWS Forthepurposeofthestatementsofcashflows,cashandcashequivalentsincludecashinhandandat

financialinstitutionswithanoriginalmaturityof3monthsorlessandwithoutrestriction. Cashandcashequivalentsasreflectedinthestatementsofcashflowsconsistofthefollowings:-

(Unit:ThousandBaht)

Consolidated Separate financial statements financial statements

2012 2011 2012 2011


Cash 106,182 112,996 303 314Depositsatfinancialinstitutions 1,734,003 1,862,174 171,988 310,545Cashandcashequivalents 1,840,185 1,975,170 172,291 310,859Currentinvestments-Term depositswithfinancialinstitutions 110,930 527,825 110,685 111,889Cashandcashequivalentsin statementsofcashflows 1,951,115 2,502,995 282,976 422,748

Asat31December2012,bankdepositsinsavingaccountsandfixeddepositscarriedinterestsbetween0.1and2.5percentperannum(2011:between0.1and2.3percentperannum).

10. RELATED PARTY TRANSACTIONS Duringtheyears,theCompanyanditssubsidiarieshadsignificantbusinesstransactionswithrelatedparties.

SuchtransactionsarearoseintheordinarycourseofbusinessandwereconcludedoncommercialtermsandbasesagreeduponbetweentheCompanyandthoserelatedparties.

TherelationshipbetweentheCompanyandtherelatedpartiesaresummarisedbelow.

Name of related parties Relationship with the Company

KinpoElectronics,Inc. Majorshareholders LogistarInternationalHoldingCo.,Ltd. Subsidiary Cal-CompElectronics(Suzhou)Co.,Ltd. Subsidiary Cal-CompOpticalElectronics(Suzhou)Co.,Ltd. Subsidiary Cal-CompElectronics&CommunicationsCo.,Ltd Subsidiary Cal-CompTechnology(Suzhou)Co.,Ltd. Subsidiary Cal-CompElectronicsandCommunications(Suzhou)Co.,Ltd. Subsidiary CalComp(Malaysia)SDN.BHD. Subsidiary Cal-CompPrecision(Singapore)Limited Subsidiary

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ANNUAL REPORT 2012

Name of related parties Relationship with the Company

Cal-CompIndustriaeComerciodeElectronicae Subsidiary InformaticaLtda. Cal-CompElectronicsdeMexicoCo.,S.A.deC.V. Subsidiary Cal-CompElectronics(USA)Co.,Ltd. Subsidiary NewKinpoGroupTechnology(Philippines),Inc. Subsidiary Cal-CompPrecision(Shanghai)Co.,Ltd. Subsidiary(heldbyasubsidiary) Cal-CompPrecision(Malaysia)SdnBhd Subsidiary(heldbyasubsidiary) Cal-CompPrecision(Thailand)Limited Subsidiary(heldbyasubsidiary) Cal-CompPrecision(Dongguan)Limited Subsidiary(heldbyasubsidiary) Cal-CompPrecision(Wujiang)Limited Subsidiary(heldbyasubsidiary) Cal-CompUSA(Indiana),Inc. Subsidiary(heldbyasubsidiary) (formerlyknownas“TotalElectronics,LLC”) Cal-CompUSA(SanDiego),Inc. Subsidiary(heldbyasubsidiary) (formerlyknownas“SMSTechnologies,Inc.”) A-TenTechnologyCo.,Ltd. Associate(heldbyasubsidiary) WiseSigmaInternationalHoldingCo.,Ltd. Associate(heldbyasubsidiary) Daviscomms(S)PteLtd. Associate(heldbyasubsidiary) OptosemTechnologies(S)PteLtd. Associate(heldbyasubsidiary) inxJapanInternationalInc. ShareholdingbytheCompany ZakangInc. ShareholdingbytheCompany MetalComponentEngineeringLimited ShareholdingbytheCompany KinpoGroupManagementServiceCo.,Ltd. Shareholdingbythesubsidiary KinpoElectronics,Inc.(China)Co.,Ltd. Subsidiaryofthemajorshareholder KinpoElectronics(Beijing)Co.,Ltd. Subsidiaryofthemajorshareholder KinpoElectronics(Shanghai)Co.,Ltd. Subsidiaryofthemajorshareholder SaveComInternational,Inc. Subsidiaryofthemajorshareholder KinpoInternationalLtd. Commonshareholders ViboTelecomCo.,Ltd. Commonshareholders AcbelPolytechInc. Commonshareholders CrownpoTechnology,Inc. Commonshareholders DongguanKaipoElectronicsCo.,Ltd. Commonshareholders


Suchsignificanttransactionsaresummarisedbelow.(Unit:MillionBaht)

Consolidated Separate financial statements financial statements Transfer Pricing Policy

2012 2011 2012 2011


Transactionswithsubsidiaries(Eliminatedfromconsolidated financialstatements) Sales - - 10,774 8,763 Nearmarketprice Salesoffixedassets - - 50 - Atbookvalueplusmargin Purchasesofrawmaterials - - 2,062 812 Nearmarketprice Purchaseoffixedassets - - 193 - CostTransactionswithrelatedparties Sales -KinpoElectronics,Inc. 525 915 125 193 Nearmarketprice -KinpoInternationalLtd. 890 5,546 190 119 Nearmarketprice -Others - 1 - - Nearmarketprice Salesoffixedassets 338 36 13 116 Atbookvalueplusmargin Purchasesofrawmaterials 11,982 20,023 136 320 Nearmarketprice Purchaseoffixedassets 8 7 - 7 Cost Otherexpenses 102 82 - - Contractprice

Thebalancesoftheaccountsasat31December2012and2011betweentheCompanyandthoserelatedcompaniesareasfollows:

(Unit:ThousandBaht)


2012 2011 2012 2011


Tradeandotherreceivables -relatedparties(Note11) Subsidiaries - - 7,954,367 4,061,332 Relatedcompanies 593,368 630,506 110,623 62,125Totaltradeandotherreceivables 593,368 630,506 8,064,990 4,123,457 -relatedpartiesTradeandotherpayables -relatedparties(Note23) Subsidiaries - - 620,208 327,162 Relatedcompanies 1,953,098 1,612,624 77,755 75,834Totaltradeandotherpayables -relatedparties 1,953,098 1,612,624 697,963 402,996

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ANNUAL REPORT 2012

Short-termloanstorelatedparties

Asat31December2012,thebalanceofshort-termloansbetweentheCompanyandthoserelatedpartiesandthemovementareasfollows:

(Unit:ThousandBaht)

Consolidated financial statements

Balance as at Balance as at 31 December Interest 31 December Short-term loans Related by 2011 Decrease receivable Translation 2012

(Restated)

WiseSigmaInternational Associated HoldingCo.,Ltd. company 61,046 - 902 (2,041) 59,907A-TenTechnologyCo.,Ltd. Associated company 67,882 - - (2,269) 65,613 128,928 - 902 (4,310) 125,520Less:Allowancefordoubtful accounts (128,928) - (902) 4,310 (125,520) - - - - -

Short-termloanstoWiseSigmaInternationalHoldingCo.,Ltd.weredenominatedinUSdollarcurrencyandinterestwaschargedattherateof2percentperannum.

Long-termloanstorelatedparties Asat31December2012,thebalanceoflong-termloansbetweentheCompanyandthoserelatedparties

andthemovementareasfollows:(Unit:ThousandBaht)

Separate financial statements

Balance as at Balance as at 31 December Interest 31 December Long-term loans Related by 2011 Increase receivable Translation 2012

Cal-CompIndustria Subsidiaries eComerciodeElectronica eInformaticaLtda. - 954,783 - (35,835) 918,948NewKinpoGroup Subsidiaries Technology (Philippines),Inc. - 109,810 - (2,599) 107,211 - 1,064,593 - (38,434) 1,026,159

Long-termloanstoCal-CompIndustriaeComerciodeElectronicaeInformaticaLtda.andNewKinpoGroupTechnology(Philippines),Inc.weredenominatedinUSdollarcurrencyandwillduein2014.


NetforeigncurrencyassetsandliabilitieshavebeenincludedinNote37. Directorsandmanagement’sbenefits

Duringtheyearsended31December2012and2011,theCompanyanditssubsidiarieshademployeebenefitexpensesoftheirdirectorsandmanagementasbelow.

(Unit:MillionBaht)


2012 2011 2012 2011


Short-termemployeebenefits 52 71 24 24Post-employmentbenefits 1 19 1 1Total 53 90 25 25

On26June2012,ameetingoftheBoardofDirectorsoftheCompanyapprovedtheissuanceofletterofguaranteeforpurchaseandserviceagreementsof itsubsidiary inBrazil,withthecredit lineofUSD150million.

11. TRADE AND OTHER RECEIVABLES(Unit:ThousandBaht)


2012 2011 2012 2011


Tradereceivables-relatedpartiesAgedonthebasisofduedatesNotyetdue 281,478 376,477 3,407,019 2,464,364Pastdue Lessthan1month 6,249 68,233 604,047 152,717 1-2months 7 136,574 720,770 670,668 2-3months 387 1,310 645,018 19,362 3-6months 7,266 1,326 298,096 3,552 6-12months - 775 78,670 4,989 Over12months - 21,816 323 -Total 295,387 606,511 5,753,943 3,315,652 Less:Allowancefordoubtfulaccounts (8,346) (955) (8,346) (955)Totaltradereceivables-relatedparties,net 287,041 605,556 5,745,597 3,314,697

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ANNUAL REPORT 2012

(Unit:ThousandBaht)


2012 2011 2012 2011


Tradereceivables-unrelatedpartiesAgedonthebasisofduedatesNotyetdue 20,890,502 22,200,611 10,210,497 7,639,329Pastdue Lessthan1month 2,764,364 2,407,036 1,238,565 709,749 1-2months 232,260 434,549 85,774 12,820 2-3months 92,218 350,279 34,562 5,016 3-6months 109,131 119,085 1,853 4,000 6-12months 653,929 35,956 4,104 14,961 Over12months 747,446 679,659 31,146 33,560Total 25,489,850 26,227,175 11,606,501 8,419,435Less:Allowancefordoubtfulaccounts (766,139) (442,163) (39,011) (37,080)Totaltradereceivables-unrelatedparties,net 24,723,711 25,785,012 11,567,490 8,382,355Totaltradereceivables,net 25,010,752 26,390,568 17,313,087 11,697,052OtherreceivablesAmountduefromrelatedparties 306,327 24,950 2,319,393 808,760Otherreceivables-unrelatedparties 1,486,505 288,247 85,718 278,157Totalotherreceivables 1,792,832 313,197 2,405,111 1,086,917Tradeandotherreceivables,net 26,803,584 26,703,765 19,718,198 12,783,969

Thebalancesofaboveotherreceivables-unrelatedpartiesasat31December2012and2011representsuspenseaccountsreceivablesetupfortheexpensecanbepassedontocustomersorvendorsandforrawmaterialswhichwerepurchasedfromsuppliersandtheinventoriestowhichengineeringorcomponentchangeshavebeenmade.TheCompanyanditssubsidiariessetupthesesuspenseaccountswhileawaitingthereturnoftherawmaterialsfromthecreditors.

12. INVENTORIES(Unit:ThousandBaht)

Consolidated financial statements Reduce cost to net Cost realisable value Inventories - net

2012 2011 2012 2011 2012 2011

(Restated) (Restated) (Restated)

Finishedgoods 3,223,410 2,370,115 (42,622) (38,273) 3,180,788 2,331,842Workinprocess 62,903 108,077 - - 62,903 108,077Rawmaterials 7,966,447 11,102,032 (129,338) (86,775) 7,837,109 11,015,257Goodsintransit 661,291 598,201 - - 661,291 598,201Total 11,914,051 14,178,425 (171,960) (125,048) 11,742,091 14,053,377


(Unit:ThousandBaht)

Separate financial statements Reduce cost to net Cost realisable value Inventories - net

2012 2011 2012 2011 2012 2011

(Restated) (Restated) (Restated)

Finishedgoods 508,580 718,337 (42,622) (36,090) 465,958 682,247Workinprocess 2,983 714 - - 2,983 714Rawmaterials 4,658,554 6,156,436 (84,493) (58,250) 4,574,061 6,098,186Goodsintransit 8,161 397,816 - - 8,161 397,816Total 5,178,278 7,273,303 (127,115) (94,340) 5,051,163 7,178,963

13. ADVANCES PAYMENT FOR RAW MATERIALS Includedinthebalancesasat31December2012and2011mainlyconsistof:- a) Short-termloansofBaht64million(2011:Baht67million(Restated))providedtolocalsuppliersforuse

asworkingcapitalinagreedproductionofrawmaterials,onwhichinterestischargedattherateof6.25percentperannum(2011:6.25percentperannum).

b) AdvancepaymentofBaht105million(2011:Baht236million(Restated)). c) AdvancepaymentofBaht170milliontosuppliers(2011:Baht84million(Restated))forthepurchaseof

moldsandrawmaterials.Theremainingbalancesistobepaiduponthecompletionofmolds(pleaserefertoNote36.4).

14. OTHER CURRENT ASSETS Thebalancesasat31December2012and2011consistof:-

(Unit:ThousandBaht)


2012 2011 2012 2011


Receivable-molds 149,312 126,145 33,709 54,716Valueaddedtax 314,688 233,031 19,582 9,653Prepaymentformachineryandequipment - 113,301 - -Others 550,642 493,791 7,748 37,892Total 1,014,642 966,268 61,039 102,261

15. RESTRICTED BANK DEPOSITS Theserepresentfixeddepositspledgedwiththebanktosecureletterofguaranteesissuedbythebankon

behalfofthesubsidiary.

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ANNUAL REPORT 2012

16. INVESTMENTS IN ASSOCIATES 16.1 DETAILS OF ASSOCIATES

(Unit:ThousandBaht)

Consolidated financial statements Carrying amount Nature of Country of Shareholding based on Company’s name business incorporation percentage Cost method equity method 2012 2011 2012 2011 2012 2011 % % (Restated) (Restated)WiseSigmaInternational Holdingcompany BritishVirgin 45.00 45.00 64,746 66,985 - - HoldingCo.,Ltd.* IslandsA-TenTechnology Telecommunication Taiwan 34.00 34.00 9,464 9,791 - 11,344 Co.,Ltd.* researchand developmentDaviscomms(S)PteLtd.** Designand Singapore 20.00 20.00 67,455 69,789 88,863 92,654 manufacturingof telecommunication productsOptosemTechnologies Manufactureofmolds, Singapore 30.00 30.00 8,749 9,051 21,105 29,894 (S)PteLtd.** diesandfixturesTotal 150,414 155,616 109,968 133,892Less:Allowancefor impairmentloss (9,464) -Net 140,950 155,616

* (heldbyLogistarInternationalHoldingCo.,Ltd.)**(heldbyCal-CompPrecision(Singapore)Limited)

16.2 SUMMARISED FINANCIAL INFORMATION OF ASSOCIATES Financialinformationoftheassociatedcompaniesissummarisedbelow.

(Unit:MillionBaht)

Paid-up Total Total Total revenues Profit (loss) capital as at assets as at liabilities as at for the year ended for the year ended Company’s name 31 December 31 December 31 December 31 December 31 December 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011

WiseSigmaInternational USD5 USD5 97 100 64 65 - - (1) (1) HoldingCo.,Ltd. million millionA-TenTechnologyCo.,Ltd. TWD30 TWD30 117* 117 98* 98 -* - -* (16) million millionDaviscomms(S)PteLtd. SGD3 SGD3 312 336 91 134 615 398 21 1 million millionOptosemTechnologies SGD0.4SGD0.4 119 109 83 54 135 158 (14) 23 (S)PteLtd. million million


Thechangeincostofinvestmentsinassociatesisfromtheexchangedifferencesontranslationoffunctionalcurrencytopresentationcurrency.

Theabovefinancialinformationwerepreparedbythemanagementoftheassociatedcompany,whichwereunauditedbyitsauditor.

* ThefinancialinformationofA-TenTechnologyCo.,Ltd.weredeterminedonthebasisoflastedfinancialinformation(31December2011)providedbythisassociatedcompany’smanagementbecausetheCompanycannotcontactwiththisassociatedcompany.However,theCompanyhasalreadysetuptheprovisionforimpairmentinfullamount.

17. INVESTMENTS IN SUBSIDIARIES Detailsofinvestmentsinsubsidiariesaspresentedinseparatefinancialstatementsareasfollows:-

(Unit:ThousandBaht)

Shareholding Company’s name Paid up capital percentage Cost method

2012 2011 2012 2011 2012 2011

% % (Restated)

LogistarInternationalHolding USD30.05 USD30.05 100 100 920,480 952,321 Co.,Ltd. million millionCal-CompElectronics USD27.2 USD27.2 100 100 833,194 862,000 (Suzhou)Co.,Ltd. million millionCal-CompOpticalElectronics USD41.3 USD41.3 100 100 765,914 792,280 (Suzhou)Co.,Ltd. million millionCal-CompElectronics& TWD70 TWD70 100 100 79,777 68,890 CommunicationsCo.,Ltd. million million

(Unit:ThousandBaht)


2012 2011 2012 2011 2012 2011

% % (Restated)

Cal-CompTechnology USD10 USD10 100 100 306,336 316,912 (Suzhou)Co.,Ltd. million millionCal-CompElectronics USD35 USD35 100 100 1,072,117 1,109,192 andCommunications million million (Suzhou)Co.,Ltd.Cal-CompPrecision SGD21 SGD21 100 100 616,798 638,046 (Singapore)Limited million millionCalComp(Malaysia)SDN. MYR28 MYR28 100 100 269,797 279,130 BHD. million millionCal-CompElectronics(USA) USD20 USD20 100 100 612,632 633,824 Co.,Ltd. million million

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ANNUAL REPORT 2012

(Unit:ThousandBaht)


2012 2011 2012 2011 2012 2011

% % (Restated)

Cal-CompIndustriae USD9 USD9 100 100 322,625 286,160 ComerciodeElectronicae million million InformaticaLtda.Cal-CompElectronicsde USD5 USD5 100 100 153,158 158,456 MexicoCo.,S.A.deC.V. million millionNewKinpoGroupTechnology PHP215 - 100 - 157,368 - (Philippines),Inc. millionTotal 6,110,196 6,097,211Less:Allowancefor (301,436) (272,076) impairmentlossNet 5,808,760 5,825,135

Thechangeincostofinvestmentsinsubsidiariesisfromtheexchangedifferencesontranslationoffunctionalcurrencytopresentationcurrency.

On16April2012,theCompanyenteredintoanamendmenttotheclosingcertificateofpurchaseandsaleagreementwiththeformershareholderstoadjustthepurchasepriceofinvestmentinCal-CompIndustriaeComerciodeElectronicaeInformaticaLtda.TheCompanypaidanadditionalUSD1.5millionorBaht46milliontotheformershareholdersduringthesecondquarterofthecurrentyear.

On14May2012,ameetingoftheBoardofDirectorsoftheCompanyapprovedthefollowinginvestments. - ApprovedanadditionalinvestmentinCal-CompPrecision(Thailand)Limited,itssubsidiary,totalingUSD

5million,forthepurposeofbusinessexpansion.Thisinvestmentisexpectedtobecompletedwithin2013.

- ApprovedaninvestmentinandestablishmentofanewsubsidiarycompanyinthePhilippines.Thiscompanyistobeprincipallyengagedinthemanufacturingofelectronicproductstoexpandthebusinessbaseandsupportcustomerdemand.TheCompanywillinvestin100%ofthetotalinvestment,butnotmorethanUSD10millionorBaht318million.Duringthesecondquarterandthirdquarterofthecurrentyear,theCompanypaidofUSD2millionorBaht66millionandUSD3millionorBaht95million,respectively.

- ApprovedthemergeroftheCompany’ssubsidiariesinthePeople’sRepublicofChina,Cal-CompElectronics(Suzhou)Co.,Ltd.andCal-CompOpticalElectronics(Suzhou)Co.,Ltd.Thismergerisexpectedtobecompletedin2013.

On26June2012,ameetingoftheBoardofDirectorsoftheCompanyapprovedanadditionalinvestmentinCal-CompIndustriaeComerciodeElectronicaeInformaticaLtda.,itssubsidiaryinBrazil,forthepurposeofdebtreduction.TheinvestmentisnotmorethanBRL58millionandisexpectedtobecompletedin2013.

CAL-COMP ELECTRONICS (THAILAND) PUBLIC COMPANY LIMITED100

On22October2012,ameetingoftheBoardofDirectorsoftheCompanyapprovedestablishmentofanewsubsidiarycompanyintheBrazil,forthesupportofsaleandmarketing.TheCompanywillinvestin100%ofthetotalinvestment,butnotmorethanUSD38million.

18. OTHER LONG-TERM INVESTMENTS(Unit:ThousandBaht)


Country of Shareholding Investments

Company’s name Nature of business incorporation percentage Cost method Fair value

2012 2011 2012 2011 2012 2011

% % (Restated) (Restated)

Investmentsinother

companies

ZakangInc. CDMA Korea 0.37 0.37 122,526 126,765 - -Less:Allowancefor - - lossonimpairment (122,526) (126,765) - -MetalComponent Manufactureof Singapore 16.70 16.70 55,423 49,751 28,576 22,912 EngineeringLimited electronicsproductsLess:Unrealisedloss onchangesinthe valueofinvestments (26,847) (26,839) 28,576 22,912

(Unit:ThousandBaht)




2012 2011 2012 2011 2012 2011

% % (Restated) (Restated)

PowerDigital Tradingof Taiwan 1.90 1.90 20,434 21,141 Communication communication Co.,Ltd. apparatusinxJapanInternational Distributorof Japan 11.11 11.11 2,860 2,959 Inc. computersproductsBC2LLtd. ProducesanddevelopSingapore - 7.00 - 15,846 BluetoothtechnologyKinpoGroup Consultingbusiness Taiwan 12.50 12.50 931 963 ManagementService Co.,Ltd. Totalotherlong-term

investments 52,801 63,821

ANNUAL REPORT 2012

101

(Unit:ThousandBaht)

Separate financial statements



2012 2011 2012 2011 2012 2011

% % (Restated) (Restated)Investmentsinother companiesZakangInc. CDMA Korea 0.37 0.37 122,526 126,765 - -Less:Allowancefor lossonimpairment (122,526) (126,765) - -MetalComponent Manufactureof Singapore 16.70 16.70 55,423 49,751 28,576 22,912 EngineeringLimited electronicsproductsLess:Unrealisedloss onchangesinthe valueofinvestments (26,847) (26,839) 28,576 22,912inxJapanInternational Distributorof Japan 11.11 11.11 2,860 2,959 Inc. computersproductsTotalotherlong-term investments 31,436 25,871

Thechangeincostofotherlong-terminvestmentsisfromtheexchangedifferencesontranslationoffunctionalcurrencytopresentationcurrency.

On10August2012,ameetingoftheBoardofDirectorsoftheCompanyapprovedLogistarInternationalHoldingCo.,Ltd.,itssubsidiary,tosellallinvestmentinBC2LLtd.tothemanagementofthatcompanywiththepriceofUSD47,577orBaht1million.ThesubsidiaryrecognisedlossfromsalesofinvestmentsamountingtoUSD452,423orBaht14millionintheconsolidatedprofitorlossfortheyearended31December2012andreceivedthemoneyon2October2012.

Duringthethirdquarterofthecurrentyear,theCompanyacquiredtheadditionalsharesofMetalComponentEngineeringLimitedinanamountof30,000,000shares(parvalueofSGD0.01pershare).ThetransactionvalueisSGD300,000orapproximatelyBaht7million.However,theCompanystillhavethesameshareholdingpercentageinthatcompany.

1�. PROPERTY, PLANT AND EQUIPMENT(Unit:ThousandBaht)


Construction in progress, equipment Buildings Office under Land and and Machinery furniture installation land buildings and Molds and and Motor and assets improvements improvements equipment spare parts equipment vehicles in transit Total

Cost1January2011(Restated) 259,100 3,297,306 7,011,173 559,022 1,220,086 60,540 81,724 12,488,951Additions - 195,349 2,158,113 174,481 427,954 3,929 1,918,084 4,877,910Acquisitionsofsubsidiary - 89,163 - - 13,268 488 - 102,919 duringtheyear


(Unit:ThousandBaht)



Disposals - (25,645) (1,032,504) (16,795) (189,507) (9,853) - (1,274,304)Transfersin(out) 23,784 138,491 833,558 150,773 42,811 8,415 (1,154,977) 42,855Translationadjustment 19,294 12,627 435,067 31,945 (54,599) 6,326 22,596 473,25631December2011(Restated) 302,178 3,707,291 9,405,407 899,426 1,460,013 69,845 867,427 16,711,587Additions 5,469 818,335 4,301,085 221,497 447,421 6,603 1,440,313 7,240,723Disposals - (256,061) (1,816,770) (142,456) (56,379) (6,018) (567) (2,278,251)Transfersin(out) 30,082 410,037 523,737 175,913 27,995 - (1,168,673) (909)Translationadjustment (10,563) (201,626) (530,281) (33,366) (184,705) (2,687) (40,421) (1,003,649)31December2012 327,166 4,477,976 11,883,178 1,121,014 1,694,345 67,743 1,098,079 20,669,501Accumulateddepreciation1January2011(Restated) - 718,629 2,656,648 304,682 664,262 27,078 - 4,371,299Depreciationfortheyear - 77,182 1,022,665 167,232 180,168 8,490 - 1,455,737Acquisitionsofsubsidiaries duringtheyear - (25,308) (444,713) (5,470) (157,016) (9,703) - (642,210)DepreciationondisposalsTranslationadjustment - 59,405 267,236 29,145 86,780 2,595 - 445,16131December2011(Restated) - 829,908 3,501,836 495,589 774,194 28,460 - 5,629,987Depreciationfortheyear - 156,711 1,229,216 300,682 180,514 6,849 - 1,873,972Depreciationondisposals - (122,434) (1,249,462) (219,854) (142,862) (2,382) - (1,736,994)Translationadjustment - (29,303) (115,802) 54,659 (23,571) (1,278) - (115,295)31December2012 - 834,882 3,365,788 631,076 788,275 31,649 - 5,651,670Allowanceforimpairmentloss1January2011(Restated) - 25,119 17,909 346 13 - - 43,387Increaseduringtheyear - 11,469 31,303 - 1,660 - - 44,432Decreaseduringtheyear - - (2,844) (252) - - - (3,096)31December2011(Restated) - 36,588 46,368 94 1,673 - - 84,723Increaseduringtheyear - 6,011 3,606 1 3 - - 9,621Decreaseduringtheyear - (10) (4,010) (3) (11) - - (4,034)Translationadjustment - (1,063) 291 6 1 - - (765)31December2012 - 41,526 46,255 98 1,666 - - 89,545Netbookvalue1January2011(Restated) 259,100 2,553,558 4,336,616 253,994 555,811 33,462 81,724 8,074,26531December2011(Restated) 302,178 2,840,795 5,857,203 403,743 684,146 41,385 867,427 10,996,87731December2012 327,166 3,601,568 8,471,135 489,840 904,404 36,094 1,098,079 14,928,286Depreciationfortheyear2011(Baht1,398million(Restated)includedinmanufacturingcost,andthebalanceinselling 1,455,737andadministrativeexpenses) 2012(Baht1,687millionincludedinmanufacturingcost,andthebalanceinselling 1,873,972andadministrativeexpenses)

ANNUAL REPORT 2012

103

(Unit:ThousandBaht)

Seperate financial statements


Cost1January2011(Restated) 186,943 1,131,586 3,364,875 470,243 310,313 15,924 - 5,479,884Additions - 52,776 192,886 25,171 59,453 - 1,261,798 1,592,084Disposals - (81) (408,617) (16,795) (4,456) (7,793) - (437,742)Transfersin(out) 23,784 122,497 629,067 150,773 40,703 8,331 (932,235) 42,920Translationadjustment 10,371 63,855 186,156 29,524 19,160 832 11,405 321,30331December2011(Restated) 221,098 1,370,633 3,964,367 658,916 425,173 17,294 340,968 6,998,449Additions 4,118 164,333 1,813,123 88,615 31,499 - 595,574 2,697,262Disposals - (885) (826,562) (91,300) (8,495) - - (927,242)Transfersin(out) - 197,359 107,559 175,913 22,863 - (503,748) (54)Translationadjustment (7,446) (50,489) (146,684) (24,269) (14,808) (578) (12,586) (256,860)31December2012 217,770 1,680,951 4,911,803 807,875 456,232 16,716 420,208 8,511,555Accumulateddepreciation1January2011(Restated) - 492,199 1,157,296 227,843 144,310 9,551 - 2,031,199Depreciationfortheyear - 24,482 605,462 105,605 34,346 1,336 - 771,231Depreciationondisposals - (85) (155,617) (5,470) (274) (7,776) - (169,222)Translationadjustment - 25,982 74,673 15,102 8,549 265 - 124,57131December2011(Restated) - 542,578 1,681,814 343,080 186,931 3,376 - 2,757,779Depreciationfortheyear - 40,881 564,220 124,566 45,599 1,934 - 777,200Depreciationondisposals - (821) (494,271) (74,347) (8,124) - - (577,563)Translationadjustment - (18,659) (57,135) (12,120) (6,734) (138) - (94,786)31December2012 - 563,979 1,694,628 381,179 217,672 5,172 - 2,862,630Allowanceforimpairmentloss1January2011(Restated) - 17,078 13,045 252 9 - - 30,384Decreaseduringtheyear - - (2,844) (252) - - - (3,096)Translationadjustment - 872 568 4 - - - 1,44431December2011(Restated) - 17,950 10,769 4 9 - - 28,732Increaseduringtheyear - 6,011 3,606 1 3 - - 9,621Decreaseduringtheyear - (678) (355) - - - - (1,033)Translationadjustment - - (3,978) (3) (9) - - (3,990)31December2012 - 23,283 10,042 2 3 - - 33,330Netbookvalue1January2011(Restated) 186,943 622,309 2,194,534 242,148 165,994 6,373 - 3,418,30131December2011(Restated) 221,098 810,105 2,271,784 315,832 238,233 13,918 340,968 4,211,93831December2012 217,770 1,093,689 3,207,133 426,694 238,557 11,544 420,208 5,615,595Depreciationfortheyear2011(Baht768million(Restated)includedinmanufacturingcost,andthebalanceinsellingandadministrativeexpenses) 771,2312012(Baht760millionincludedinmanufacturingcost,andthebalanceinsellingandadministrativeexpenses) 777,200

Asat31December2012,certainmachineryandequipmentandofficeequipment itemshavebeen fullydepreciatedbutarestillinuse.Thegrosscarryingamount(beforedeductingaccumulateddepreciation)ofthoseassetsamountedtoapproximatelyBaht803million(2011:Baht608million(Restated))(Separatefinancialstatements:Baht312million2011:Baht173million(Restated)).


20. INTANGIBLE ASSETS Thecarringamountofintangibleassetsasat31December2012and2011areasfollows:

(Unit:ThousandBaht)

Consolidated financial statements Patents Customer list TotalCost:At1January2011-Restated 726,631 104,323 830,954Translationadjustment 37,111 5,329 42,440At31December2011-Restated 763,742 109,652 873,394Translationadjustment (25,536) (3,667) (29,203)At31December2012 738,206 105,985 844,191Amortisation:At1January2011-Restated 479,736 - 479,736Amortisation 145,219 11,150 156,369Translationadjustment 29,527 386 29,913At31December2011-Restated 654,482 11,536 666,018Amortisation 70,821 32,398 103,219Translationadjustment (21,883) (805) (22,688)At31December2012 703,420 43,129 746,549Netbookvalue:At1January2011-Restated 246,895 104,323 351,218At31December2011-Restated 109,260 98,116 207,376At31December2012 34,786 62,856 97,642

21. OTHER NON-CURRENT ASSETS LAND OCCUPANCY RIGHTS

ThebalancerepresentstherightstousepublicpropertyinthePeople’sRepublicofChinaoftwosubsidiariesandtherightstousepublicpropertyinthePhilippinesofanothersubsidiary.Theserightshaveaperiodof50yearsand75years.

(Unit:ThousandBaht)

Consolidated financial statements 2012 2011 (Restated)Cost 86,629 82,240Increaseduringtheyear 28,811 -Translationadjustment (2,401) 4,508Accumulatedamortisation (13,824) (11,800)Netbookvalue 99,215 74,948Amortisationexpensesincludedinprofitorlossfortheyear 2,024 2,026

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105

Duringthecurrentyear,therightstousepublicpropertyinthePhilippineswereadditionallygrantedtoanothersubsidiary.

22. SHORT-TERM LOANS FROM FINANCIAL INSTITUTIONS Short-termloansfromfinancialinstitutionsoftheCompanyanditssubsidiariesconsistofloansfrombothlocal

banksandoverseasfinancialinstitutionsinbothlocalcurrencyandforeigncurrency.Theloansaremainlyrepayablewithin3months,andcarryinterestratesof1.0-2.5percentperannum.Itmajorshareholdershasissuedaletterofawarenesstoabankforcreditfacilities.

23. TRADE AND OTHER PAYABLES(Unit:ThousandBaht)


2012 2011 2012 2011

(Restated) (Restated)Tradepayable-relatedparties 1,812,145 1,441,191 633,435 367,345Tradepayable-unrelatedparties 20,061,049 19,481,386 10,334,066 8,596,025Advancefromrelatedparties 140,953 171,433 64,528 35,651Accruedinterestexpenses 18,470 58,721 4,039 1,612Accruedexpenses 804,492 993,028 171,787 210,384Otherpayables 1,323,196 2,520,571 153,539 505,463Totaltradeandotherpayables 24,160,305 24,666,330 11,361,394 9,716,480

Theoutstandingbalanceofaboveaccountspayablerepresentsaccountspayablesuspenseforgoodssaleswhichtherearesubjecttochangesinprice,specificationsandothercomponents.

24. OTHER CURRENT LIABILITIES Thebalanceasat31December2012and2011consistof:-

(Unit:ThousandBaht)


2012 2011 2012 2011

(Restated) (Restated)Advancesreceivedfromcustomersforpurchaseofmolds 43,212 44,068 31,908 44,068Moneyreceivedfromcustomerspendingforclear 110,504 455,333 56,982 209,268Valueaddedtaxpayable 202,089 48,555 51,523 48,554Financialliabilitiesrecordatfairvalue - 1,069,314 - -Others 156,782 79,303 13,745 7,739Total 512,587 1,696,573 154,158 309,629


25. LONG-TERM LOANS On31August2009,ameetingoftheBoardofDirectorsoftheCompanyapprovedthesyndicatedloanfor

theCompanyandLogistarInternationalHoldingCo.,Ltd.,itssubsidiary.TheloanfacilityofUSD120millionhasaperiodofthreeyearsandisextendableforanothertwoyears.Thepurposeoftheloanistoimprovethefinancialstructureandincreaseworkingcapitaltosupportbusinessoperations.On9September2009,theCompanyanditssubsidiaryenteredintoaloanagreementwithfinancialinstitutionsinaccordancewiththeconditionsthatwereapprovedbytheBoardoftheCompany.TheloancarriesinterestatLIBORplusfixedrateasspecifiedinaloanagreementandistorepaidineverysixmonths.During2010,thesubsidiarydrewdownUSD60millionfromtheabovementionedcreditfacility.Subsequently,inthesecondquarterofthiscurrentyear,thesubsidiarydrewdownanadditionalUSD20million”.Astheloanagreementwasterminatedon27November2012,theCompanyanditssubsidiaryrequestedthefinancialinstitutionstoextendtheloanagreementforanothertwoyearsandrevisedtheloanfacilitytobeUSD51.2million.Asat31December2012,thesubsidiaryhasfullydrawndownthecreditfacility.

26. PROVISION FOR LONG-TERM EMPLOYEE BENEFITS Provision for long-term employee benefits, which is compensations on employees’ retirement, was as

follows:(Unit:ThousandBaht)


2012 2011 2012 2011

(Restated) (Restated)Definedbenefitobligationatbeginningofyear 265,654 200,707 45,010 36,736Fairvalueofplanassetsatthebeginningyear (201,271) (163,971) - - 64,383 36,736 45,010 36,736Currentservicecost 16,994 13,585 9,332 6,460Interestcost 8,260 6,927 2,441 2,049Benefitspaidduringtheyear (5,367) (3,663) (645) -Actuariallosses 22,159 2,017 22,159 355Pastservicecosts 2,146 1,946 - -Translationadjustments 30,816 19,974 1,649 (590)Definedbenefitobligationatendofyear 139,391 77,522 76,648 45,010Increaseinfairvalueofplanassets (27,149) (13,139) - -Provisionsforlong-termemployeebenefits

atendofyear 112,242 64,383 76,648 45,010

ANNUAL REPORT 2012

107

Long-termemployeebenefitexpensesincludedintheprofitorlosswasasfollows:(Unit:ThousandBaht)


2012 2011 2012 2011

(Restated) (Restated)Currentservicecost 16,994 13,585 9,332 6,460Interestcost 8,260 6,927 2,441 2,049Pastservicecostsrecognisedduringtheyear 2,146 1,946 - -Totalexpenserecognisedinprofitorloss 27,400 22,458 11,773 8,509Lineitemsunderwhichsuchexpensesare includedinprofitorlossCostofsales 26,945 22,129 11,318 8,180Sellingandadministrativeexpenses 455 329 455 329

Totalactuarialgainsand losses recognised in theothercomprehensive incomeof theCompanyand itssubsidiariesasat31December2012amountedtoBaht22million(2011:Nil)(TheCompanyonly:Baht22millionand2011:Nil).

Thechangeinthefairvalueofplanassetsisasfollows:(Unit:ThousandBaht)


2012 2011

Fairvalueofplanassetsatbeginningofyear 201,271 163,971Expectedreturn 2,264 2,081Contributions 35,858 30,349Benefitspaidduringtheyear (3,800) (4,473)Translationadjustments (7,173) 9,342Fairvalueofplanassetsatendofyear 228,420 201,270

Theaboveplanassetofanoverseasubsidiaryisdepositsatoverseafinancialinstitution. Principalactuarialassumptionsatthevaluationdatewereasfollows:


2012 2011 2012 2011

(% per annum) (% per annum) (% per annum) (% per annum)

Discountrate 2.0-4.3 2.0-4.5 4.3 4.5Futuresalaryincreaserate(dependingonage) 3.0-6.0 3.0-6.0 6.0 6.0Staffturnoverrate 2.0 2.0 2.0 2.0


Amountsofdefinedbenefitobligationforthecurrentandpreviousfourperiodsareasfollows:(Unit:ThousandBaht)

Defined benefit obligation Experience adjustments arising on the plan liabilities

Consolidated Separate Consolidated Separate financial financial financial financial statements statements statements statements

Year2012 92,235 56,642 8,154 8,154Year2011 64,383 45,010 (56) (56)Year2010 36,736 36,736 8,967 8,967Year2009 31,397 31,397 - -Year2008 26,468 26,468 - -

27. WARRANTS On2April2012,theCompanyallottedwarrantsunderEmployeeStockOptionPlan(ESOP2011)toemployees

oftheCompanyanditssubsidiariesfor200,000,000units.Thedetailsareasfollows: No.ofsecuritiesoffered :200,000,000units No.ofsharesreservedforexercise :200,000,000shares Term :3yearsfromtheissuancedateofwarrants Offeringdate :2April2012 Expirydate :2April2015 Offeringprice :0Baht Exerciseprice :2.80Bahtpershare Exerciseratio :1ordinaryshareper1warrant.Theexerciseratiomaybechanged

followingtheconditionsforadjustmentofright. Allotmentmethod :30%oftotalissuedwarrantsof60,000,000unitswillbeallotteddirectly

totheemployeesoftheCompanyanditssubsidiarieson2April2012,and70%oftotalissuedwarrantsof140,000,000unitswillbeallottedthroughintermediaryforfutureallotmentsinthesecondandthirdyearuponfutureperformanceofeachemployee.

Lock-upperiod :30%oftotalissuedwarrantsof60,000,000unitswillbeallotteddirectlytoemployeesoftheCompanyanditssubsidiariesasattheofferingdateandshallbesubjectto1yearlock-upperiodaftertheofferingdate.TheCompanywillmakeawrittenagreementpertainingtothelock-upperiodwithallallottedemployees.70%oftotalissuedwarrantsof140,000,000unitsallottedthroughintermediaryshallbesubjecttoa2yearlock-upperiodaftertheofferingdate.

ANNUAL REPORT 2012

10�

TheestimatedfairvalueofeachshareoptiongrantedisBaht0.39.ThiswascalculatedusingtheBinomialformula.ThemodelinputswerethesharepriceatpricedeterminationdateofBaht2.84,exercisepriceofBaht2.80,expectedvolatilityof31.09%,expecteddividendyieldof4.71%,lifeofwarrantsof3years,andarisk-freeinterestrateof3.41%.

Duringtheyearended31December2012,theCompanyanditssubsidiariesrecordedexpensesoftheESOP2011planamountingtoBaht17million(theCompanyonly:Baht3million)aspersonnelexpenses.Asat31December2012,theCompanyhascapitalreserveforshare-basedpaymentwasBaht17million.

Asat31December2012,thereare140,000,000warrantsremainedunallocated.

28. STATUTORY RESERVE PursuanttoSection116ofthePublicLimitedCompaniesActB.E.2535,theCompanyisrequiredtosetaside

toastatutoryreserveatleast5percentofitsnetprofitafterdeductingaccumulateddeficitbroughtforward(ifany),untilthereservereaches10percentoftheregisteredcapital.Thestatutoryreserveisnotavailablefordividenddistribution.Atpresent,thestatutoryreservehasfullybeensetaside.

2�. EXPENSES BY NATURE Significantexpensesbynatureareasfollow:

(Unit:ThousandBaht)


2012 2011 2012 2011

(Restated) (Restated)Salaryandwagesandotheremployeebenefits 5,660,962 4,319,981 1,308,424 948,391Depreciation 1,873,972 1,455,737 777,200 771,231Lossonimpairmentofproperty,plantand equipment(Reversal) 5,587 37,245 5,631 (3,095)Amortisationexpenses 105,243 158,395 - -Exchange(gains)loss 413,890 (90,723) (50,756) 192,903Rentalexpensesfromoperatinglease agreements 334,111 189,960 895 771Rawmaterialsandconsumablesused 108,674,595 112,262,663 61,486,991 48,859,625Changesininventoriesoffinishedgoods andworkinprogress (808,121) (2,229,169) 207,488 247,939

30. INCOME TAX/DEFERRED TAX ASSETS (LIABILITIES) Incometaxisprovidedintheaccountsattheamountexpectedtobepaidtothetaxationauthorities,based

onthetaxableprofitsfromthenon-promotedactivitiesdeterminedinaccordancewithtaxlegislation.Incometaxoftheoverseassubsidiariesisprovidedforintheaccountsbasedonthetaxableprofitsdeterminedinaccordancewithtaxlegislationoftheircountries.Somesubsidiariesarelocatedintaxhavens.

IncometaxexpenseoftheCompanyandsubsidiariesfortheyearsended31December2012and2011areasfollows:


(Unit:ThousandBaht)


2012 2011 2012 2011

(Restated) (Restated)Incometaxontaxableincome 71,209 97,681 3,678 3,052Expense(income)indeferredincometax 41,753 7,727 (1,754) 748Incometaxasincludedinprofitorloss 112,962 105,408 1,924 (3,800)

Reconciliationbetweentaxexpensesandtheproductofaccountingprofitmultipliedbytheapplicabletaxratesfortheyearsended31December2012and2011.

(Unit:MillionBaht)


2012 2011 2012 2011

(Restated) (Restated)Accountingprofitbeforecorporateincometax 1,312 1,193 1,920 1,521Applicabletaxrate 10-35% 10-35% 23% 30%Accountingprofitbeforetaxmultipliedby applicabletaxrate 596 562 442 456Taxeffectforinvestmentpromotion(Note31) (426) (464) (426) (464)Increaseindeferredtaxassets 41 (1) (2) (1)Others (98) 8 (12) 13Corporateincometaxinprofitorloss 113 105 2 4

Thecomponentsofdeferredtaxassetsanddeferredtaxliabilitiesaspresentedinstatementsoffinancialpositionconsistof:

(Unit:MillionBaht)


2012 2011 2012 2011

(Restated) (Restated)DeferredtaxassetsDeficitonchangeinvalueof available-for-saleinvestments 5,368 5,368 5,368 5,368Others 29,645 16,985 13,949 745Total 35,013 22,353 19,317 6,113DeferredtaxliabilitiesAccumulateddepreciation-machinery 51,614 8,652 - -Total 51,614 8,652 - -

ANNUAL REPORT 2012

111

InOctober2011,thecabinetpassedaresolutiontoreducethecorporateincometaxratefrom30percentto23percentin2012,andthento20percentfrom2013.Inaddition,inordertocomplywiththeresolutionofthecabinet,inDecember2011,thedecreaseintaxratesfor2012-2014wereenactedthrougharoyaldecree.TheCompanyreflectedthechangesintaxratesinitsdeferredtaxcalculation,aspresentedabove.

Asat31December2012,thesubsidiarieshaveunusedtaxlossestotalingBaht986million(2011:Baht770million),onwhichdeferredtaxassetshavenotbeenrecognizedasthesubsidiariesbelievethatfuturetaxableprofitsmaynotbesufficienttoallowutilizationoftheunusedtaxlosses.

31. PROMOTIONAL PRIVILEGES TheCompanyhasbeengrantedpromotionalprivilegesundertheInvestmentPromotionActB.E.2520,forthe

manufactureofelectronicsandelectronicsequipment,bytheBoardofInvestmentundercertainsignificantconditions.SignificantprivilegesoftheCompanyareasfollow:

Details

1.CertificateNo. 1992(2)/2550 2231(2)/2551 1041(1)/25531042(1)/2553 1701(2)/25542.Thesignificantprivilegesare 2.1 Exemptionofcorporateincometaxforprofit 8years 5years 8years 8years 5years frompromotionalprivilegesandexemptionof incometaxondividendspaidfromtheincome oftheoperationsthroughouttheperiodinwhich thecorporateincometaxisexempted. 2.2 Allowancefor5%oftheincrementinexport Non-granted Non-granted Non-granted Non-granted Non-granted incomeovertheprecedingyearfortenyears, providingthattheexportincomeofthat particularyearshouldnotbelowerthanthe averageexportincomeoverthethreepreceding yearsexceptforthefirsttwoyears. 2.3 Exemptionofimportdutyonmachineryas Granted Granted Granted Granted Granted approvedbytheboard. 2.4 Exemptionofimportdutyonrawmaterialsand Granted Granted Granted Granted Granted significantsuppliesusedinexportproduction (5years) (1year) (1year) (5years) (1year) foraperiodof(year)fromthefirstimportdate. 2.5 Afiftypercentreductionofthenormalrateof Non-granted Non-granted Granted Granted Non-granted corporateincometaxonprofitderivedfromthe promotedactivityforaperiodoffiveyearsafter theexpirationoftheabovecorporateincome taxexemptionperiod. 2.6 Permissiontodoubledeductthecostsof Non-granted Non-granted Granted Granted Non-granted transportation,electricityandwatersupplyfora periodoftenyears,commencingasfromthe dateoffirstearningoperatingincome.3.Dateoffirstearningoperatingincome 11Apr2008 2Jan2009 1Apr2011 6Jan2012 Norevenue incurred duringthe

year


TheCompany’soperationrevenuesfortheyearsarebelowshowndividedaccordingtopromotedandnon-promotedoperations.

(Unit:MillionBaht)

Promoted operations Non-promoted operations Total 2012 2011 2012 2011 2012 2011 (Restated) (Restated) (Restated)Sales Domesticsales 21,292 15,708 105 1 21,397 15,709 Exportsales 39,998 35,795 4,828 1,158 44,826 36,953Totalsales 61,290 51,503 4,933 1,159 66,223 52,662

32. EARNINGS PER SHARE Basicearningspershare iscalculatedbydividingprofit for theyearattributable toequityholdersof the

Company(excludingothercomprehensiveincome)bytheweightedaveragenumberofordinarysharesinissueduringtheyear.

DilutedearningspershareiscalculatedbydividingprofitfortheyearattributabletoequityholdersoftheCompany(excludingothercomprehensiveincome)bytheweightedaveragenumberofordinarysharesinissueduringtheyearplustheweightedaveragenumberofordinaryshareswhichwouldneedtobeissuedtoconvertalldilutivepotentialordinarysharesintoordinaryshares.Thecalculationassumesthattheconversiontookplaceeitheratthebeginningoftheyearoronthedatethepotentialordinaryshareswereissued.

Nocalculationofdilutedearningspersharefortheyearsended2012and2011wererequiredforwarrant(ESOP2011)sincetheexercisepriceandthefairvalueofthewarrantwerehigherthantheaveragemarketpriceoftheCompany’sordinaryshares.

33. SEGMENT INFORMATION TheCompanyanditssubsidiaries’businessoperationsinvolvethesingleindustrysegmentofmanufacturing

anddistributingelectronicequipment. Below is theconsolidated financial information for theyearsended31December2012and2011of the

Companyanditssubsidiariesbysegment:-(Unit:MillionBaht)

For the years ended 31 December

Local sales Overseas sales Total Elimination Consolidation

2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 (Restated) (Restated) (Restated) (Restated) (Restated)

Sales -external 21,373 15,651 117,405 109,089 138,778 124,740 - - 138,778 124,740 -relatedparties - - 29,882 40,500 29,882 40,500 (28,467) (34,038) 1,415 6,462 21,373 15,651 147,287 149,589 168,660 165,240 (28,467) (34,038) 140,193 131,202Segmentincome 706 552 3,242 3,041 3,948 3,593 3,948 3,593

ANNUAL REPORT 2012

113

(Unit:MillionBaht)

For the years ended 31 December

Local sales Overseas sales Total Elimination Consolidation

2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 (Restated) (Restated) (Restated) (Restated) (Restated)

Unallocatedincomeandexpense:: Otherincome 514 264 Administrativeexpenses (2,766) (2,421) Shareofprofitfrominvestmentsinassociates - 7 Financialcost (384) (251) Incometaxexpenses (113) (105) Profitfortheyear 1,199 1,087

TransferpricesbetweenbusinesssegmentsareassetoutinNote10.(Unit:MillionBaht)

As at 31 December

Local Overseas Consolidation 2012 2011 2012 2011 2012 2011 (Restated) (Restated) (Restated)

-Property,plantandequipment 5,616 4,212 9,312 6,785 14,928 10,997-Unallocatedassets 42,577 45,415Totalassets 57,505 56,412

34. PROVIDENT FUND TheCompanyanditsemployeeshavejointlyestablishedaprovidentfundinaccordancewiththeProvident

FundActB.E.2530.Thefundismonthlycontributedtobyemployees,attherateof2percentoftheirbasicsalaries,andbytheCompanyatthesamerate.Thefund,whichismanagedbyTISCOSecuritiesCompanyLimited,willbepaidtoemployeesuponterminationinaccordancewiththefundrules.Duringtheyear2012,theCompanycontributedBaht1million(2011:Baht1million(Restated))tothefund.

35. DIVIDENDS

Dividends Approved by Total dividends Dividend per share Million Baht BahtFinaldividendsfor2010 AnnualGeneralMeetingofthe shareholderson5April2011 326 0.08Interimdividendsfor2011 BoardofDirectors’meetingon 9August2011 326 0.08Totalfor2011 652Finaldividendsfor2011 AnnualGeneralMeetingofthe shareholderson20April2012 326 0.08Interimdividendsfor2012 BoardofDirectors’meetingon 10August2012 326 0.08Totalfor2012 652


36. COMMITMENTS AND CONTINGENT LIABILITIES 36.1 CAPITAL COMMITMENTS

Asat31December2012,theCompanyhadoutstandingcommitmentsofBaht78millionandUSD1millioninrespectoftheconstructionoffactorybuildingandacquisitionofmachinery(2011:Baht257million).

36.2 OPERATING LEASE COMMITMENTS

Futureminimumleasepaymentsrequiredunderthesenon-cancellableoperatingleasescontractsofasubsidiarywereasfollows:

(Unit:Million)

As at 31 December

2012 2011

(USD) (SGD)

Payable: Inupto1year 2 2 Inover1to5years 4 5

36.3 OTHER COMMITMENTS

Asat31December2012,theCompanyhadoutstandingcommitmentofTWD30millionandPHP2millioninrespectofuncalledportionofinvestmentsinitstwosubsidiaries(2011:TWD30million).

36.4 AGREEMENTS FOR HIRE OF PRODUCTION OF MOLDS

Asat31December2012,theCompanyhadoutstandingcommitmentsofBaht1millionandUSD1millionwithoverseassuppliersinrespectofagreementsforhireofproductionofmolds(2011:Baht1millionandTWD1million).

36.5 GUARANTEES

Asat31December2012,therewereoutstandingbankguaranteesofapproximatelyBaht240millionandUSD2million(2011:Baht234millionandSGD2million)issuedbythebanksonbehalfoftheCompanyanditssubsidiariesinrespectofcertainperformancebondsasrequiredinthenormalcourseofbusiness.Itsmajorshareholdershasissuedaletterofawarenesstoabankforcreditfacilities.

37. FINANCIAL INSTRUMENTS 37.1 FINANCIAL RISK MANAGEMENT

TheCompanyanditssubsidiaries’financialinstruments,asdefinedunderThaiAccountingStandardNo.107“Financial Instruments:DisclosureandPresentations”,principallycomprisecashandcashequivalents,tradeaccountsreceivable,loans,investments,short-termandlong-termloans.Thefinancialrisksassociatedwiththesefinancialinstrumentsandhowtheyaremanagedisdescribedbelow.

ANNUAL REPORT 2012

115

Creditrisk

TheCompanyanditssubsidiariesareexposedtocreditriskprimarilywithrespecttotradeaccountsreceivable,loans,notesandotherreceivable.TheCompanyanditssubsidiariesmanagetheriskbyadoptingappropriatecreditcontrolpoliciesandproceduresandthereforedonotexpecttoincurmaterialfinanciallosses.Themaximumexposuretocreditriskislimitedtothecarryingamountsofreceivables,loans,otherreceivablesandnotesreceivableasstatedinthestatementoffinancialposition.

Interestraterisk

TheCompanyanditssubsidiaries’exposuretointerestrateriskrelatesprimarilytoitscashatbanksandborrowings.MostoftheCompanyanditssubsidiaries’financialassetsandliabilitiesbearfloatinginterestratesorfixedinterestrateswhichareclosetothemarketrate.

Significantfinancialassetsandliabilitiesclassifiedbytypeofinterestratearesummarisedinthetablebelow,withthosefinancialassetsandliabilitiesthatcarryfixedinterestratesfurtherclassifiedbasedonthematuritydate,ortherepricingdateifthisoccursbeforethematuritydate.

(Unit:MillionBaht)

As at 31 December 2012 Consolidated financial statements Fixed interest Non- Average rates within Floating interest interest 1 year interest rate bearing Total rate (% per annum)

Financialassets-Cashandcashequivalents - 1,734 106 1,840 0.1-3.0-Currentinvestments 111 - - 111 2.3-2.6-Tradeandotherreceivables - - 26,804 26,804 --Restrictedbankdeposits - 8 - 8 2.25-2.30 111 1,742 26,910 28,763Financialliabilities-Short-termloansfromfinancialinstitutions - 15,799 - 15,799 1.0-3.9-Tradeandotherpayables - - 24,160 24,160 --Long-termloans - 1,568 - 1,568 1.5-1.9 - 17,367 24,160 41,527


(Unit:MillionBaht)

As at 31 December 2011 (Restated) Consolidated financial statements Fixed interest Non- Average rates within Floating interest interest 1 year interest rate bearing Total rate (% per annum)

Financialassets-Cashandcashequivalents - 1,861 114 1,975 0.1-0.8-Currentinvestments 528 - - 528 0.1-2.3-Tradeandotherreceivables - - 26,704 26,704 - 528 1,861 26,818 29,207Financialliabilities-Short-termloansfromfinancialinstitutions - 15,362 - 15,362 0.8-4.0-Tradeandotherpayables - - 24,666 24,666 - - 15,362 24,666 40,028

(Unit:MillionBaht)

As at 31 December 2012 Separate financial statements Fixed interest Non- Average rates within Floating interest interest 1 year interest rate bearing Total rate (% per annum)

Financialassets-Cashandcashequivalents - 172 - 172 0.1-2.5-Currentinvestments 111 - - 111 2.4-2.5-Tradeandotherreceivables - - 19,718 19,718 --Long-termloanstorelatedparties 107 - 919 1,026 0.0-1.3 218 172 20,637 21,027Financialliabilities-Short-termloansfromfinancialinstitutions - 9,815 - 9,815 1.2-3.9-Tradeandotherpayables - - 11,361 11,361 - - 9,815 11,361 21,176

ANNUAL REPORT 2012

117

(Unit:MillionBaht)

As at 31 December 2011 (Restated) Separate financial statements Fixed interest Non- Average rates within Floating interest interest 1 year interest rate bearing Total rate (% per annum)

Financialassets-Cashandcashequivalents - 311 - 311 0.7-0.8-Currentinvestments 112 - - 112 2.3-Tradeandotherreceivables - - 12,784 12,784 - 112 311 12,784 13,207Financialliabilities-Short-termloansfromfinancialinstitutions - 5,927 - 5,927 1.1-3.7-Tradeandotherpayables - - 9,716 9,716 - - 5,927 9,716 15,643

TheCompanyanditssubsidiariesenteredintointerestrateswapagreementtomanageriskassociatedwith the financial liabilitiescarrying floating interest.Thedetailof the interest rateswapagreementoutstandingasat31December2011isasfollows:-

Asat31December2011,asubsidiaryhasoutstandingInterestRateSwapTransactionAgreementswithtwooverseasbanksforprincipaltotalingUSD178million.Thecontractsareforaperiodof3-5years,maturinginJune-October2012withtheconditionstipulatedintheagreements.Ateachofthematuritydates,thesubsidiaryisrequiredtopayinteresttothebankbasedonthefixedratestipulatedintheagreements(1.3%-9.9%)andthebanksisrequiredtopayinteresttothesubsidiaryatfloatingrateplusstipulatedrate(0.0%-8.7%).Theagreementscontainotherconditions.Asat31December2011,thefairvalueoftheabovecontractsareapproximatelyUSD28millionorBaht889million.

Foreigncurrencyrisk

TheCompanyanditssubsidiaries’exposuretoforeigncurrencyriskarisemainlyfromtradingtransactionsandborrowingsthataredenominatedinforeigncurrencies.TheCompanyanditssubsidiariesseektoreducethisriskbyenteringintoforwardexchangecontractswhenitconsidersappropriate.Generally,theforwardcontractsmaturewithinoneyear.

Thebalancesoffinancialassetsandliabilitiesdenominatedinforeigncurrenciesasat31December2012aresummarisedbelow.

Financial assets Financial liabilities Average exchange rate Foreign currency As at 31 December As at 31 December As at 31 December 2012 2011 2012 2011 2012 2011

(Million) (Million) (Million) (Million) (Baht per 1 foreign currency units)Duewithin1yearUSD 487 352 535 383 30.63 31.69JPY 3,577 1,002 3,203 3,950 0.35 0.41TWD 2 11 - - 1.05 1.05


Asat31December2011,thesubsidiarieshadthefollowingoutstandingcontracts:- FORWARD CONTRACTS

As at 31 December 2011

Bought Sold Contractual exchange rate Contractual Foreign currency amount amount Bought Sold maturity date (Million) (Million)

SubsidiariesUSDagainstRMB 12 12 6.37 6.36 January2012

CURRENCY OPTION AGREEMENT Asat31December2011,asubsidiaryhasoutstandingsaleofputoptionagreementsunderwhichit

willreceiveUSD1millionandpayJPY114milliononmaturitydates7June2012.Asat31December2011,thefairvalueoftheabovecontractsareapproximatelyUSD6million,orBaht181million.

37.2 FAIR VALUES OF FINANCIAL INSTRUMENTS SincethemajorityoftheCompanyanditssubsidiaries’financialinstrumentsareshort-terminnatureor

bearfloatinginterestrates,theirfairvalueisnotexpectedtobemateriallydifferentfromtheamountspresentedinthestatementoffinancialposition.Thefairvalueofcurrencyoptionagreement,whichisoffstatementoffinancialpositionitem,hasdetailsasdescribedinNote37.1.

A fair value is the amount for which an asset can be exchanged or a liability settled betweenknowledgeable,willingpartiesinanarm’slengthtransaction.Thefairvalueisdeterminedbyreferencetothemarketpriceofthefinancialinstrumentorbyusinganappropriatevaluationtechnique,dependingonthenatureoftheinstrument.

38. CAPITAL MANAGEMENT Theprimaryobjectivesof theCompany’scapitalmanagement is toensurethat ithasappropriatecapital

structure,inordertosupportitsbusinessandmaximizeshareholdervalue.Asat31December2012,theGroup’sdebt-to-equityratiowas2.76:1(2011:2.87:1(Restated))andtheCompany’swas1.31:1(2011:1.09:1(Restated)).

3�. EVENT AFTER THE REPORTING PERIOD On21February2013,theCompany’sBoardofDirectors’meetingpassedaresolutiontoproposetothe

AnnualGeneralMeetingofshareholderstobeheldinApril2013toadoptaresolutiontopayadividendofBaht0.08pershare,oratotalofBaht326million,totheshareholdersinrespectofthe2012profit.

SuchdividendwillbepaidandrecordedafteritisapprovedbytheAnnualGeneralMeetingoftheCompany’sshareholders.

40. FUNCTIONAL CURRENCY FINANCIAL STATEMENTS TheUSDfunctionalcurrencystatementoffinancialpositionasat31December2012andstatementofincome

fortheyearended31December2012areasfollows.

ANNUAL REPORT 2012

11�

Cal-CompElectronics(Thailand)PublicCompanyLimitedanditssubsidiariesStatementoffinancialpositionAsat31December2012

(Unit:ThousandUSD)


2012 2011 2012 2011

Assets Currentassets Cashandcashequivalents 60,075 62,326 5,625 9,809 Currentinvestments Termdepositsatfinancialinstitutions 3,621 16,655 3,613 3,531Tradeandotherreceivables 875,030 842,624 643,721 403,392Inventories 383,333 443,447 164,900 226,529Advancespaymentforrawmaterials 11,109 12,216 3,561 3,560Othercurrentassets 33,124 30,489 1,993 3,225Totalcurrentassets 1,366,292 1,407,757 823,413 650,046Non-currentassetsLong-termloanstorelatedparties - - 33,500 -Restrictedbankdeposits 263 - - -Investmentsinassociates 3,590 4,225 - -Investmentsinsubsidiaries - - 189,633 183,809Otherlong-terminvestments 1,724 2,014 1,026 816Property,plantandequipment 487,349 347,001 183,327 132,906Goodwill 4,288 3,388 - -Otherintangibleassets 3,188 6,545 - -Deferredtaxassets 1,143 705 631 193Othernon-currentassets Landoccupancyrights 3,239 2,365 - - Others 6,246 6,062 37 36Totalnon-currentassets 511,030 372,305 408,154 317,760Totalassets 1,877,322 1,780,062 1,231,567 967,806


Cal-CompElectronics(Thailand)PublicCompanyLimitedanditssubsidiariesStatementoffinancialposition(continued)Asat31December2012

(Unit:ThousandUSD)


2012 2011 2012 2011

Liabilitiesandshareholders’equity CurrentliabilitiesShort-termloansfromfinancialinstitutions 515,780 484,754 320,417 187,036Tradeandotherpayables 788,738 778,334 370,904 306,599Currentportionoflong-termloans 25,600 - - -Incometaxpayable 634 821 51 15Excessofcostofnetassetvalueover investmentinsubsidiary - 601 - -Othercurrentliabilities 16,735 53,535 5,033 9,770Totalcurrentliabilities 1,347,487 1,318,045 696,405 503,420Non-currentliabilities Provisionforlong-termemployeebenefits 3,664 2,031 2,503 1,420Deferredtaxliabilities 1,685 273 - -Long-termloans,netofcurrentportion 25,600 - - -Totalnon-currentliabilities 30,949 2,304 2,503 1,420Totalliabilities 1,378,436 1,320,349 698,908 504,840Shareholders’equitySharecapitalIssuedandpaidupsharecapital 4,077,556,192ordinaryshares ofBaht1each 97,908 97,908 97,908 97,908Sharepremium 79,640 79,640 79,640 79,640Capitalreserveforshare-based paymenttransactions 544 - 544 -Retainedearnings Appropriated-statutoryreserve 12,617 12,617 12,617 12,617 Unappropriated 236,302 222,912 254,295 214,020Othercomponentsofshareholders’equity 71,875 46,636 87,655 58,781Totalshareholders’equity 498,886 459,713 532,659 462,966Totalliabilitiesandshareholders’equity 1,877,322 1,780,062 1,231,567 967,806

ANNUAL REPORT 2012

121

Cal-CompElectronics(Thailand)PublicCompanyLimitedanditssubsidiariesIncomestatement Fortheyearended31December2012

(Unit:ThousandUSD)


2012 2011 2012 2011

RevenuesSales 4,514,618 4,308,640 2,132,404 1,719,216Exchangegains - 3,000 1,757 -Gainonfinancialderivatives 33,763 16,872 - -Otherincome 16,520 8,625 1,382 2,001Totalrevenues 4,564,901 4,337,137 2,135,543 1,721,217ExpensesCostofsales 4,368,317 4,175,982 2,060,531 1,657,762Sellingexpenses 19,500 15,348 1,784 1,294Administrativeexpenses 109,041 98,875 6,396 4,200Exchangeloss 13,510 - - 6,298Totalexpenses 4,510,368 4,290,205 2,068,711 1,669,554Profitbeforeshareofprofit(loss)from investmentinassociates,financecostand incometaxexpenses 54,533 46,932 66,832 51,663Shareofprofit(loss)from investmentinassociates (1) 233 - -Profitbeforefinancecostand incometaxexpenses 54,532 47,165 66,832 51,663Financecost (12,411) (8,194) (4,968) (2,007)Profitbeforeincometaxexpenses 42,121 38,971 61,864 49,656Incometaxexpenses (3,632) (3,441) (66) (114)Profitfortheyear 38,489 35,530 61,798 49,542

41. APPROVAL OF FINANCIAL STATEMENTS ThesefinancialstatementswereauthorisedforissuebytheCompany’sauthoriseddirectoron21February

2013.


Ccet 12

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