 (UNAUDITED BUT REVIEWED)
CHUMPORN PALM OIL INDUSTRY PUBLIC COMPANY LIMITED
NOTES TO INTERIM FINANCIAL STATEMENTS
FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2004
1.	GENERAL INFORMATION
	1.1	Basis for the preparation of  interim financial statements
			These interim financial statements are prepared in accordance with Accounting Standard 
Pronouncement No. 41 "Interim financial statements", with the Company choosing to 
present condensed interim financial statements. However, additional line items are 
presented in the balance sheets, and the statements of earnings, changes in shareholders' 
equity and cash flows, to bring them into line with the full format used in the annual 
financial statements.
			The interim financial statements are intended to provide information additional to that 
included in the latest annual financial statements. Accordingly, they focus on new 
activities, events and circumstances so as not to duplicate information previously reported. 
These interim financial statements should therefore be read in conjunction with the latest 
annual financial statements.
	1.2	Basis of preparation of consolidation
		The subsidiaries, Pathui Plantation Company Limited and Rung Ruang Palm Oil Company 
Limited, transferred all of their business to the Company on 30 April 2003, registered their 
dissolution with the Ministry of Commerce on 1 September 2003, and returned equity to 
their shareholders on 16 September 2003. Because the related party transactions discussed 
in Note 4 were insignificant to the consolidated financial statements, the Company has not 
prepared consolidated financial statements for the three-month and nine-month periods 
ended 30 September 2003.


(UNAUDITED BUT REVIEWED)
	1.3	Significant accounting policies
			The interim financial statements have been prepared using the same accounting policies 
and methods of computation as were used for the financial statements for the year ended  
31 December 2003.
2.	CASH AND CASH EQUIVALENTS
(Unit: Thousand Baht)

30 September 2004
31 December 2003
Cash
688
612
Deposits at financial institutions
61,184
92,847
Total
61,872
93,459
3.	TRADE ACCOUNTS RECEIVABLE 
	The outstanding balances of trade accounts receivable as at 30 September 2004 and 31 December 
2003 are classified by aging based on the invoice dates, as follows: -
 (Unit: Thousand Baht)

30 September 2004
31 December 2003
Less than 30 days
165,834
105,726
31 - 60 days
33,322
22,570
Over 60 days
25
3,381
Total
199,181
131,677
4.	RELATED PARTY TRANSACTIONS
	The Company had significant trading transactions with its subsidiaries. Such transactions, which 
occurred in the ordinary course of business in 2003, are summarised below: -


(UNAUDITED BUT REVIEWED)
 (Unit: Thousand Baht)

For the three-month period
For the nine-month period


ended 30 September 2003
ended 30 September 2003
Pricing policy
Purchases of raw materials
-
70,101
Market price
Sales of by products
-
12,362
Market price
Other income
-
35
As agreed
Business transfer
-
540,267
Land transferred at the 
market value appraised by 
an independent appraisal 
company and other assets 
and liabilities transferred 
at their net book values.
Dividend income
-
402,471
As declared
Return of investment in 
   subsidiaries

165,281

165,281

Actual paid
5.	INVENTORIES
(Unit: Thousand Baht)

30 September 2004
31 December 2003
Raw materials
20,456
7,301
Finished goods
357,102
280,866
Spare parts and supplies
40,185
41,260
Total
417,743
329,427
6.	RECEIVABLE UNDER FORWARD PALM OIL CONTRACTS
	Receivable under forward palm oil contracts of USD 222,236 comprises the guaranteed amounts 
under forward palm oil contracts (as discussed in Note 16.4) and realised and unrealised 
gains/losses arising as a result of these forward contracts.


(UNAUDITED BUT REVIEWED)
7.	PROPERTY, PLANT AND EQUIPMENT
	As at 31 December 2003, the Company has mortgaged certain plots of land and buildings 
thereon with banks to secure credit facilities granted to the Company, as discussed in Notes 8 and 
9. However, during the second quarter of the current year the Company has redeemed the 
mortgage of the land and buildings thereon.
8.	BANK OVERDRAFTS AND SHORT-TERM LOANS FROM FINANCIAL 
INSTITUTIONS
	As at 31 December 2003, overdrafts and short-term loans from financial institutions were 
secured by the mortgage of certain plots of land and buildings thereon of the Company and were 
guaranteed by the Company. During the year 2004, the Company redeemed the mortgage of the 
land and buildings thereon.
9.	LONG-TERM LOANS
(Unit: Thousand Baht)

30 September 2004
31 December 2003
Long-term loans
30,000
45,000
Less: Current portion of long-term loans
(20,000)
(20,000)
Long-term loans - net of current portion
10,000
25,000
Long-term loans comprise a loan from UOB Radanasin Bank Public Company Limited, subject 
to interest at 4.5 percent per annum, and repayable in quarterly installments from May 2003 to 
February 2006.
As at 31 December 2003, the loan was secured by the mortgage of certain plots of land and 
buildings thereon. During the year 2004, the Company redeemed the mortgage of the land and 
buildings thereon.


(UNAUDITED BUT REVIEWED)
10.	DEBENTURES
(Unit: Thousand Baht)

30 September 2004
31 December 2003
Debentures
28,006
56,003
Less: Current portion of debentures
(28,006)
(27,997)
Debentures - net of current portion
-
28,006
	During the first quarter of 2002, the Company offered 84,000 debentures for sale to its existing 
shareholders at Baht 1,000 each, in a ratio of 250 existing shares to 1 debenture, in order to raise 
a total of Baht 84 million for use as working capital.  The significant details of the debentures are 
summarised below: -
1.	Amortising, registered, unsecured, senior debentures
2.	A fixed interest rate of 5.10 percent per annum
3.	Maturity 3 years
4.	No trustee
	5.	Principal and interest are to be redeemed on an annual basis commencing from the date of 
issuance of the debentures.  Principal is to be paid in installments beginning at the end of 
the first year, with 33.33% paid in the first and second year and 33.34% in the third year.
11.	CORPORATE INCOME TAX
	Corporate income tax for the three-month and nine-month periods ended 30 September 2004 has 
been calculated at the rate of 12.5 percent on the Company's earnings after adding back certain 
provisions and expenses that are not deductible for tax computation purposes and deducting 
certain expenses in compliance with the conditions of the promotional privileges.
	No corporate income tax was payable by the Company for the three-month and nine-month 
periods ended 30 September 2003 since the Company had tax loss brought forward from 
previous periods in excess of its net earnings for the period which are not exempt from corporate 
income tax under the Investment Promotion Act B.E. 2520.


(UNAUDITED BUT REVIEWED)
12.	DIVIDEND
The Annual General Meeting of Shareholders No.1/2547 approved the payment of a dividend of 
Baht 0.45 per share, totaling Baht 118.12 million.
13.	BANK GUARANTEES
	As at 30 September 2004 there were outstanding guarantees of approximately Baht 9.8 million          
(31 December 2003: Baht 1.3 million) issued by a bank on behalf of the Company in respect of 
certain performance bonds as required in the normal course of business of the Company.
14.	COMMITMENTS
	As at 30 September 2004, the Company had outstanding commitments of approximately Baht 
142.8 million (31 December 2003: Baht 5.9 million) in respect of purchases of machinery and 
construction.
15.	FINANCIAL INFORMATION BY SEGMENT
	The operations of the Company and its subsidiaries involve a single industry segment, namely, 
oil palm plantation and palm oil processing, since all production of the subsidiaries' plantation 
activities is sold to the Company.  Geographical segment information for the Company and its 
subsidiaries for the three-month and nine-month periods ended 30 September 2004 and 2003 and 
as of 30 September 2004 and 31 December 2003 is as follows: -
(Unit: Million Baht)

For the three-month periods ended 30 September

Local sales
Export sales
Total

2004
2003
2004
2003
2004
2003
Sales
502.48
425.50
128.58
60.79
631.06
486.29
Earnings from operations




111.08
76.26
Other income




0.41
2.17
Expenses and interest expense




(59.72)
(49.07)
Corporate income tax




(4.74)
-
Net earnings




47.03
29.36


(UNAUDITED BUT REVIEWED)
 (Unit: Million Baht)

For the nine-month periods ended 30 September

Local sales
Export sales
Total

2004
2003
2004
2003
2004
2003
Sales
1,395.20
1,283.66
488.81
134.51
1,884.01
1,418.17
Earnings from operations




388.92
222.62
Other income




1.73
14.31
Expenses and interest expense




(172.19)
(140.15)
Corporate income tax




(22.92)
-
Net earnings




195.54
96.78
(Unit: Million Baht)

Domestic
Overseas
Total

30 September
31 December
30 September
31 December
30 September
31 December

2004
2003
2004
2003
2004
2003
Total assets
1,888.83
1,738.56
-
-
1,888.83
1,738.56
16.	FINANCIAL INSTRUMENTS
16.1	Credit risk
	Concentrations of credit risk arise because the Company's customers are mainly in the 
ready-made food and manufacturing sectors.  Their ability to meet their obligations is thus 
sensitive to the health of the local economy.
16.2	Interest rate risk
	The interest rate risk is the risk that future movements in market interest rates which will 
affect the results of the Company's operations and its cash flows. The Company's exposure 
to interest rate risk relates primarily to its cash and cash equivalents, bank overdrafts, loans 
and debentures.  The Company does not use derivative instruments to hedge such risk.


(UNAUDITED BUT REVIEWED)
	16.3	Foreign currency risk
		The exposure to foreign currency risk of the Company relates primarily to its receivables 
and payables which are denominated in foreign currencies.
		As at 30 September 2004, the foreign currency denominated assets of the Company 
amounted to USD 1.2 million, and the Company has entered into forward exchange 
contracts to sell USD 2.3 million, in order to hedge foreign currency risk.
	16.4	Market risk
		In order to hedge the risk arising as a result of the market price of palm oil, which tends to 
fluctuate significantly, the Company has entered into forward contracts to purchase and sell 
crude palm oil.  The Company is thus exposed to risk in that the prices under the forward 
contracts will change in line with prices on the Malaysian market (BMD).
16.5	Fair value 
	Since the majority of the financial assets are short-term, and the loans and debentures carry 
interest at rates close to current market rates, the management believes that the fair value of 
the financial assets and liabilities of the Company does not materially differ from their 
carrying value.
17.	APPROVAL OF INTERIM FINANCIAL STATEMENTS
	These interim financial statements have been approved by the Company's directors.

 
 
 
 
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