The interim financial statements were authorised for issue by the executive directors on 9 November 2011.

Transcription

1 Note Contents 1 General information 2 Basis of preparation of the interim and new Thai Financial Reporting Standards 3 Changes in accounting policies 4 Related party transactions 5 Accounts receivable - trade and others 6 Available-for-sale investments 7 Investments in subsidiaries 8 Investments in associates 9 Investments in related companies 10 Investment properties 11 Property, plant and equipment 12 Accounts payable - trade and others 13 Employee benefit obligations 14 Segment information 15 Basic earnings per share 16 Dividends 17 Amalgamation of local subsidiaries 18 Commitments with non-related parties 19 Events after the reporting period 20 Thai Financial Reporting Standards not yet adopted 21 Reclassification of accounts 19

2 These notes form an integral part of the. The interim were authorised for issue by the executive directors on 9 November General information Charoen Pokphand Foods Public Company Limited, the Company, is incorporated in Thailand and has its registered head office at 313 C.P. Tower, Silom Road, Kwaeng Silom, Khet Bangrak, Bangkok 10500, Thailand. The Company was listed on the Stock Exchange of Thailand on 21 December The ultimate parent company of the Company and subsidiaries (together referred to as the Group ) is Charoen Pokphand Group Company Limited which is incorporated in Thailand. The principal businesses of the Group are operating in agro-industrial and integrated food businesses. The Group s business operations are located throughout Thailand and overseas. The businesses are divided into 2 main segments as follows: 1) Livestock business comprises chicken, duck and pigs 2) Aquaculture business consists of shrimp and fish The two main businesses are vertically integrated, sourcing raw materials for animal feed production, manufacturing animal feed, breeding animals, farming animals for commercial purposes, processing meat, producing ready-to-eat food products, and selling their products to both domestic and overseas markets. The Group s main products are divided into 3 main categories as follows: 1) Animal feed 2) Animal farm products such as animal breeder, live animal, meat, etc. 3) Processed foods and ready meals Details of the Company s subsidiaries as at 30 September 2011 and 31 December 2010 were as follows: Country of Ownership interest Name of the entity Type of business incorporation (%) 30 September 31 December Thailand operations and businesses related to operations in Thailand Livestock business Direct subsidiaries 1) Bangkok Produce Merchandising Public Company Limited Animal feed raw materials distribution and broiler integration Thailand ) Bangkok Agro-Industrial Products Public Company Limited Animal feedmill and livestock farming Thailand ) Bangkok Food Products Co., Ltd. Animal feedmill, livestock farming and food processing plant Thailand ) Charoen Pokphand Northeastern Public Company Limited Animal feedmill and livestock farming Thailand

3 Country of Ownership interest Name of the entity Type of business incorporation (%) 30 September 31 December ) Charoen Pokphand Industry Co., Ltd. Animal feedmill and livestock farming Thailand ) CPF Food Products Co., Ltd. Broiler chicken integration Thailand ) C.P. Agro-Industry Co., Ltd. Livestock farming Thailand ) C.P. Merchandising Co., Ltd. Investment and international trading Thailand ) B.P. Food Products Co., Ltd. Animal feedmill and livestock farming Thailand ) Bangkok Farm Co., Ltd. (1) Livestock farming and processing plant Thailand ) Rajburi Foods Co., Ltd. Animal feedmill and livestock farming Thailand ) Universal Food and Marketing Co., Ltd. Wholesale and retail food products Thailand ) International Pet Food Co., Ltd. Pet food production and distribution Thailand Indirect subsidiaries 1) CPF Trading Co., Ltd. Wholesale and retail food products Thailand ) CPF Premium Foods Co., Ltd. Food processing plant Thailand ) CPF Logistics Co., Ltd. Transportation services Thailand ) C.P. Food Products Co., Ltd. (2) Restaurant Thailand ) CPF Food Trading Co., Ltd. Importer and distributor of processed The People s meat and ready meals Republic of China ) Charoen Pokphand (Taiwan) Co., Ltd. * Importer and distributor feedstuff additives and animal vaccines Taiwan ) CP Foods (UK) Limited Importer and distributor of processed United 8) CPF Europe S.A. Importer and distributor of processed meat and ready meals Belgium ) CPF Denmark A/S Importer and distributor of processed meat and ready meals Denmark ) CPF Tokyo Co., Ltd. Importer and distributor of processed meat and ready meals Japan ) Fusion Abbey Park Limited Importer and distributor of processed United 12) Fusion Alfrick Limited Importer and distributor of processed United 13) Fusion Bracewell Limited Importer and distributor of processed United meat and ready meals Kingdom ) Fusion Bransford Limited Importer and distributor of processed United 15) Fusion Broadway Limited Importer and distributor of processed United 16) Fusion Brothwood Limited Importer and distributor of processed United 17) Fusion Calis Limited Importer and distributor of processed United 18) Fusion Carnoustie Limited Importer and distributor of processed United 19) Fusion Charlton Limited Importer and distributor of processed United 20) Fusion Crowle Limited Importer and distributor of processed United 21

4 Country of Ownership interest Name of the entity Type of business incorporation (%) 30 September 31 December ) Fusion Dalaman Limited Importer and distributor of processed United 22) Fusion Defford Limited Importer and distributor of processed United 23) Fusion Dormington Limited Importer and distributor of processed United 24) Fusion Driscoll Limited Importer and distributor of processed United 25) Fusion Dumbleton Limited Importer and distributor of processed United 26) Fusion Eastoe Limited Importer and distributor of processed United meat and ready meals Kingdom ) Fusion Elmbridge Limited Importer and distributor of processed United 28) Fusion Everton Limited Importer and distributor of processed United 29) Fusion Exning Limited Importer and distributor of processed United 30) Fusion Fethiye Limited Importer and distributor of processed United 31) Fusion Gatley Limited Importer and distributor of processed United 32) Fusion Gocek Limited Importer and distributor of processed United 33) Fusion Gray Limited Importer and distributor of processed United meat and ready meals Kingdom ) Fusion Grimley Limited Importer and distributor of processed United 35) Fusion Guarlford Limited Importer and distributor of processed United 36) Fusion Haddenham Limited Importer and distributor of processed United 37) Fusion Hadzor Limited Importer and distributor of processed United 38) Fusion Hallow Limited Importer and distributor of processed United 39) Fusion Harper Limited Importer and distributor of processed United meat and ready meals Kingdom ) Fusion Hartford Limited Importer and distributor of processed United meat and ready meals Kingdom ) Fusion Haverhill Limited Importer and distributor of processed United 42) Fusion Hawstead Limited Importer and distributor of processed United 43) Fusion Head Street Limited Importer and distributor of processed United 44) Fusion Heath Limited Importer and distributor of processed United meat and ready meals Kingdom ) Fusion Irvine Limited Importer and distributor of processed United meat and ready meals Kingdom

5 Country of Ownership interest Name of the entity Type of business incorporation (%) 30 September 31 December ) Fusion Kaitaia Limited Importer and distributor of processed United 47) Fusion Kroma Limited Importer and distributor of processed United 48) Fusion Krone Limited Importer and distributor of processed United 49) Fusion Lidgate Limited Importer and distributor of processed United 50) Fusion Lineker Limited Importer and distributor of processed United meat and ready meals Kingdom ) Fusion Littleworth Limited Importer and distributor of processed United 52) Fusion Madeley Limited Importer and distributor of processed United 53) Fusion Mcmahon Limited Importer and distributor of processed United meat and ready meals Kingdom ) Fusion Mountfield Limited Importer and distributor of processed United meat and ready meals Kingdom ) Fusion Moyes Limited Importer and distributor of processed United meat and ready meals Kingdom ) Fusion Newlands Limited Importer and distributor of processed United 57) Fusion Niamh Limited Importer and distributor of processed United 58) Fusion Pershore Limited Importer and distributor of processed United 59) Fusion Priest Lane Limited Importer and distributor of processed United 60) Fusion Ratcliffe Limited Importer and distributor of processed United meat and ready meals Kingdom ) Fusion Reid Limited Importer and distributor of processed United meat and ready meals Kingdom ) Fusion Richardson Limited Importer and distributor of processed United meat and ready meals Kingdom ) Fusion Samui Limited Importer and distributor of processed United 64) Fusion Saxham Limited Importer and distributor of processed United 65) Fusion Sharp Limited Importer and distributor of processed United meat and ready meals Kingdom ) Fusion Sheedy Limited Importer and distributor of processed United meat and ready meals Kingdom ) Fusion Soham Limited Importer and distributor of processed United 68) Fusion Southall Limited Importer and distributor of processed United meat and ready meals Kingdom ) Fusion Stevens Limited Importer and distributor of processed United meat and ready meals Kingdom ) Fusion Stowmarket Limited Importer and distributor of processed United 23

6 Country of Ownership interest Name of the entity Type of business incorporation (%) 30 September 31 December ) Fusion Swaffham Limited Importer and distributor of processed United 72) Fusion Thetford Limited Importer and distributor of processed United 73) Fusion Turgay Limited Importer and distributor of processed United 74) Fusion Uzumlu Limited Importer and distributor of processed United 75) Fusion Van Den Hauwe Limited Importer and distributor of processed United meat and ready meals Kingdom ) Fusion Wadborough Limited Importer and distributor of processed United 77) Fusion Wellington Limited Importer and distributor of processed United 78) Fusion Whistler Limited Importer and distributor of processed United 79) Fusion Wright Limited Importer and distributor of processed United meat and ready meals Kingdom ) Fusion Yamac Limited Importer and distributor of processed United Aquaculture business Direct subsidiaries 1) Klang Co., Ltd. (3) Shrimp processing plant Thailand ) Seafoods Enterprise Co., Ltd. (2) Shrimp processing plant Thailand ) Pokphand Aquatech Co., Ltd. (2) Aquatic feed production and distribution and aquaculture farm Thailand ) C.P. Food Products, Inc. Importer and distributor of seafood United States products of America Direct and indirect subsidiary 1) Thai Prawn Culture Center Co., Ltd. (4) Shrimp farming and processing plant Thailand Indirect subsidiary 1) CP Foods West, Inc. Importer and distributor of food United States products (operations wound up of America in September 2010) Other businesses Direct subsidiaries 1) CPF Training Center Co., Ltd. Training center service provider Thailand ) CPF IT Center Co., Ltd. Information technology service provider Thailand Overseas operations Direct subsidiaries 1) Charoen Pokphand Foods Kenya Co., Ltd. Animal feedmill and livestock farming Kenya

7 Country of Ownership interest Name of the entity Type of business incorporation (%) 30 September 31 December ) Charoen Pokphand Foods Philippines Corporation 3) Charoen Pokhand Foods (Malaysia) Sdn. Bhd. (Formerly Calibre Nature (M) Sdn. Bhd.) Animal feed production and distribution and shrimp hatchery business Philippines Investment in aquaculture integration business Malaysia ) CPF Investment Limited Investment British Virgin Islands ) C.P. Aquaculture (Beihai) Co., Ltd. Aquatic feed production and The People s distribution and aquaculture Republic of farming China ) C.P. Aquaculture (Dongfang) Co., Ltd. Shrimp hatchery business The People s Republic of China ) C.P. Aquaculture (Hainan) Co., Ltd. Aquaculture farming The People s Republic of China Direct and indirect subsidiaries 1) Charoen Pokphand Foods (Overseas) LLC. Animal feedmill and livestock farming Russia ) Charoen Pokphand (India) Private Limited Animal feedmill and livestock farming India ) C.P. Standart Gida Sanayi ve Ticaret A.S. Chicken integration Turkey Indirect subsidiaries 1) A.P.P. Enterprise, Inc. * Property lease-out Philippines ) Arbor Acres (Taiwan) Co., Ltd. * Livestock farming Taiwan ) Asia Aquaculture (M) Sdn. Bhd. Shrimp farming and processing plant Malaysia ) Bright Excel Investments Limited Investment British Virgin Islands ) C.P. Laos Co., Ltd. Animal feedmill and livestock farming Laos ) Charoen Pokphand Enterprise (Taiwan) Co., Ltd. * Chicken integration and livestock farming Taiwan ) Charoen Pokphand (Taiwan) Investment Limited Investment Bermuda Islands ) Charoen Pokphand (USA), Inc. Broiler chicken integration (operations United States wound up in March 2004) of America ) Chia Tai Lianyungang Co., Ltd. * Investment Hongkong ) Chun Ta Investment Co., Ltd. Investment Taiwan

8 Country of Ownership interest Name of the entity Type of business incorporation (%) 30 September 31 December ) Coinaton Investments Limited Investment British Virgin Islands ) CPF Agro LLC. Livestock farming Russia ) Forward Pass Limited Investment British Virgin Islands ) Lianyungang Chia Tai The People s Agro-industry Development Republic of Co., Ltd.* Animal feedmill China ) New Splendid Holdings Limited Investment British Virgin Islands ) Plenty Type Limited * Investment Cayman Islands ) Star Feedmills (M) Sdn. Bhd. Aquatic feed production and distribution Malaysia ) Ta Chung Investment Co., Ltd. Investment Taiwan ) Taiwan Sizzler Co., Ltd. (2) Restaurant Taiwan (1) Transferred the principal activity, food processing, to CPF Food Products Co., Ltd. (2) In the process of liquidation (3) Transferred the principal activities, shrimp farming and processing plant, to the Company (4) Registered the completeness of liquidation in the second quarter of 2011 * The Company has the power to govern those companies. 2 Basis of preparation of the interim and new Thai Financial Reporting Standards 2.1 Statement of compliance The interim issued for Thai reporting purposes are prepared in the Thai language. This English translation of the interim has been prepared for the convenience of readers not conversant with the Thai language. The interim are prepared on a condensed basis in accordance with Thai Accounting Standard No. 34 (revised 2009) Interim Financial Reporting; including related interpretations and guidelines promulgated by the Federation of Accounting Professions ( FAP ); applicable rules and regulations of the Thai Securities and Exchange Commission. The interim are prepared to provide an update on the for the year ended 31 December They do not include all of the financial information required for full annual but focus on new activities, events and circumstances to avoid repetition of information previously reported. Accordingly, these interim should be read in conjunction with the for the year ended 31 December The Group has applied new and revised Thai Financial Reporting Standards ( TFRS ) that have been issued during 2010 by the FAP for the preparation of the interim for the three-month and nine-month periods ended 30 September Details are as follows: 26

9 TFRS TAS 1 (revised 2009) TAS 2 (revised 2009) TAS 7 (revised 2009) TAS 8 (revised 2009) TAS 10 (revised 2009) TAS 12 TAS 16 (revised 2009) TAS 17 (revised 2009) TAS 18 (revised 2009) TAS 19 TAS 23 (revised 2009) TAS 24 (revised 2009) TAS 27 (revised 2009) TAS 28 (revised 2009) TAS 33 (revised 2009) TAS 34 (revised 2009) TAS 36 (revised 2009) TAS 37 (revised 2009) TAS 38 (revised 2009) TAS 40 (revised 2009) TFRS 3 (revised 2009) TFRS 5 (revised 2009) Topic Presentation of Financial Statements Inventories Statement of Cash Flows Accounting Policies, Changes in Accounting Estimates and Errors Events after the Reporting Period Income Tax Property, Plant and Equipment Leases Revenue Employee Benefits Borrowing Costs Related Party Disclosures and Financial Statements Investments in Associates Earnings per Share Interim Financial Reporting Impairment of Assets Provisions, Contingent Liabilities and Contingent Assets Intangible Assets Investment property Business Combinations Non-current Assets Held for Sale and Discontinued Operations The adoption of these new and revised TFRS has resulted in changes in the Group s accounting policies. The effects of these changes are disclosed in note 3 to the interim. Except for the changes referred to above, accounting policies and methods of computation applied in these interim are consistent with those applied in the financial statements for the year ended 31 December In addition to the above new and revised TFRS, the FAP has issued during 2010 a number of other TFRS which become effective for beginning on or after 1 January 2013 and have not been adopted in the preparation of these interim. These new and revised TFRS are disclosed in note 20 to the interim. 2.2 Presentation currency The interim are presented in Thai Baht. All financial information presented in Thai Baht has been rounded in the notes to the interim to the nearest million Baht unless otherwise stated. 2.3 Use of judgements and estimates The preparation of interim in conformity with TFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. 27

10 In preparing these interim, the judgements made by management in applying the Group s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the for the year ended 31 December Except for the changes principally derive from the adoption of new and revised TFRS from 1 January Measurement of employee benefit obligations The calculation of the employee benefit obligations is subject to the assumptions on discount rate, salary increase rate and mortality rate as set out in note 13 to the interim financial statements. 2.4 Financial information reviewed by other auditors The interim of all subsidiaries and associates included in the preparation of the consolidated interim for the three-month and nine-month periods ended 30 September 2011 and 2010 were reviewed by the Company s auditors, except for the interim for the three-month and nine-month periods then ended of certain foreign subsidiaries and associates which were reviewed by other auditors. Financial information reviewed by other auditors are as follows: Statement of financial position as at 30 September 2011 Total assets of subsidiaries 24,755 Direct and indirect investments in associates 4,340 Total 29,095 Three months Nine months Statement of income for the three-month and nine-month periods ended 30 September 2011 Total revenues of subsidiaries 14,430 40,335 Share of profit of associates Total 14,845 41,301 Statement of income for the three-month and nine-month periods ended 30 September 2010 Total revenues of subsidiaries 13,156 37,934 Share of profit of associates Total 13,277 38,339 28

11 3 Changes in accounting policies 3.1 Overview From 1 January 2011, the Group has changed its significant accounting policies consequent to the adoption of new and revised Thai Financial Reporting Standards ( TFRS ) as set out in note 2 to the interim are as follows: Presentation of Accounting for investment properties Accounting for employee benefits Details of the new accounting policies adopted by the Group and the impact of the changes in each accounting policies on the interim are included in notes 3.2 to 3.4 to the interim. The impacts of 2011 and 2010 equity are summarised as follows: Note financial financial statements statements Statement of financial position Equity at 1 January as previously reported 54,979 44,641 Changes as a result of the adoption retrospectively - Measurement of investment properties 3.3 (159) (7) Equity at 1 January restated 54,820 44,634 Equity at 31 December as previously reported 61,103 48,118 Changes as a result of the adoption retrospectively - Measurement of investment properties 3.3 (159) (7) Equity at 31 December 2010 and 1 January restated prior to retained earnings adjustment 60,944 48,111 Changes as a result of an adjustment to retained earnings as at 1 January Accounting for employee benefit obligations 3.4 (2,307) (847) Equity at 1 January restated 58,637 47, Presentation of From 1 January 2011, the Group has applied TAS 1 (revised 2009) Presentation of Financial Statements. Under the revised standard, a set of comprises: Statement of financial position; Statement of income; Statement of comprehensive income; Statement of changes in equity; Statement of cash flows; and Notes to the. 29

12 For the statement of comprehensive income, the Group is required to present all changes in non-equity, such as currency translation differences and revaluation differences on assets as other comprehensive income in the statement of comprehensive income. Comparative information has been re-presented so that it also is in conformity with the revised standard. Since the change in accounting policy only impacts presentation aspects, there is no impact on reported profit or earnings per share. 3.3 Accounting for investment properties From 1 January 2011, the Group has applied TAS 40 (revised 2009) Investment property, which has been applied retrospectively in accordance with the transitional provisions of the revised standard. New accounting policy The Group has selected the cost model for accounting for its investment properties, which has been applied retrospectively, including the reversal of any amount held in revaluation surplus for the investment properties recorded in equity and deferred tax liabilities to present the value of investment properties at cost model. Previous accounting policy Prior to the year 2011, investment properties were presented under the account, Land held for future projects and were measured using the revaluation model. Revaluation changes were recognised in equity in accordance with the provision of TAS 16 Property Plant and Equipment. The impacts on 2011 and 2010 were as follows: 31 December 31 December 2010 and 2010 and 30 September 1 January 30 Sebtember 1 January Statement of financial position Decrease in revaluation differences on assets Decrease in land held for future project - (1,121) - (98) Decrease in property, plant and equipment (29) - (48) - Increase in investment properties Decrease in deferred tax liabilities

13 3.4 Accounting for employee benefits From 1 January 2011, the Group has applied TAS 19 Employee Benefits. The Group has selected to adjust retained earnings as at 1 January 2011 in accordance with the transitional provisions of the revised standard. New accounting policy The Group s obligations in respect of post-employment benefits under defined benefit plan is recognised in the based on calculations performed by a qualified actuary using the projected unit credit method. Previous accounting policy Prior to the year 2011, the Group recorded certain obligations on the provision recognition. The impacts on 2011 were as follows: Note financial financial statements statements Statement of financial position as at 1 January 2011 Decrease in investments in associates (19) - Increase in deferred tax assets Increase in employee benefit obligations (3,232) (1,214) Decrease in retained earnings 2, Increase in other components of equity (35) - Decrease in non-controlling interests Statement of income for the three-month period ended 30 September 2011 Increase in employee benefits expenses Decrease in profit before income tax expense Decrease in basic earnings per share (in Baht) Statement of income for the nine-month period ended 30 September 2011 Increase in employee benefits expenses Decrease in profit before income tax expense Decrease in basic earnings per share (in Baht) Related party transactions Related parties are those parties considered to be related to the Group. Related parties have the ability, directly or indirectly, to control the Group or exercise significant influence over the Group in making financial and operating decisions or where the Group and parties are subject to common control or common significant influence from the ultimate parent company of the Group. 31

14 The pricing policies for particular types of transactions are explained further below: Transactions Sale of goods Purchase of raw material and goods Purchase and sale of property, plant and equipment Purchase and sale of investments Interest income/interest expense Dividend income Rental and service fees Technical service fees Insurance premium Trademark license fee Other income/other expenses Pricing policies The price list of the Group The price list of the suppliers Fair value Fair value Source of fund cost plus fund management expenses Right to receive dividends Standard rates as specified by the lessors or service providers Rate per quantity of feed production/rate per sale value of animal feed Standard rates as specified by the insurers Rate per sales value under trademark Standard service rates as specified by the service providers 4.1 Significant transactions for the three-month and nine-month periods ended 30 September 2011 and 2010 with related parties For the three-month periods ended 30 September2011 and 2010 (a) Revenues Subsidiaries Sale of goods - - 7,986 6,239 Dividend income ,407 Interest income Rental, service and other income Associates and related companies Sale of goods 2,494 2, Software application income Training and seminar income Rental, service and other income (b) Expenses and others Ultimate parent company Purchase of raw materials and goods 1,648 1, Technical service fees Trademark license fees

15 For the three-month periods ended 30 September2011 and 2010 (Continued) (b) Expenses and others (Continued) Subsidiaries Purchase of raw materials and goods - - 3,720 3,749 Software application fees Rental and service fees Training and seminar fees Purchase of equipment and others Interest and other expenses Associates and related companies Purchase of raw materials and goods 3,816 3, Rental and service fees Construction costs of buildings, structures and others Purchase of equipment and others Insurance premium Trademark license fees Software application fees Other expenses For the nine-month periods ended 30 September 2011 and 2010 (a) Revenues Subsidiaries Sale of goods ,130 17,592 Dividend income - - 3,217 4,604 Interest income - - 1, Gain on sale of property, equipment and others Rental, service and other income Associates and related companies Sale of goods 7,348 5, Dividend income Interest income Software application income Training and seminar income Rental, service and other income

16 For the nine-month periods ended 30 September 2011 and 2010 (Continued) (b) Expenses and others Ultimate parent company Purchase of raw materials and goods 4,805 4,030 1,857 1,762 Technical service fees Trademark license fees Subsidiaries Purchase of raw materials and goods - - 9,197 9,564 Software application fees Rental and service fees Training and seminar fees Purchase of equipment and others Interest and other expenses Associates and related companies Purchase of raw materials and goods 8,993 7,711 1,196 1,683 Rental and service fees Construction costs of buildings, structures and others Purchase of equipment and others Insurance premium Trademark license fees Software application fees Other expenses Balances as at 30 September 2011 and 31 December 2010 with related parties Accounts receivable - trade and others 30 September 31 December 30 September 31 December Subsidiaries C.P. Merchandising Co., Ltd ,447 1,991 Bangkok Produce Merchandising Public Company Limited

17 4.2.1 Accounts receivable - trade and others (Continued) 30 September 31 December 30 September 31 December CP Foods (UK) Limited CPF Europe S.A C.P. Food Products, Inc CPF Trading Co., Ltd CPF Premium Foods Co., Ltd Charoen Pokphand Northeastern Public Company Limited CPF Food Products Co., Ltd CPF Food Trading Co., Ltd Bangkok Agro-Industrial Products Public Company Limited B.P. Food Products Co., Ltd C.P. Agro-Industry Co., Ltd Charoen Pokphand Foods (Overseas) LLC CPF Tokyo Co., Ltd Other Total - - 3,977 4,330 Associates CP ALL Public Company Limited Counter Service Co., Ltd C.P. Retailing and Marketing Co., Ltd PK Agro-Industrial Products (M) Sdn. Bhd Allianz C.P. General Insurance Co., Ltd Other Total 1,312 1, Related companies Charoen Pokphand Intertrade Singapore (Pte) Ltd

18 4.2.1 Accounts receivable - trade and others (Continued) 30 September 31 December 30 September 31 December C.P. Consumer Products Co., Ltd Perfect Companion Group Co., Ltd Advance Pharma Co., Ltd Shanghai Lotus Supermarket Chain Store Co., Ltd Farm Pichit Thai Livestock Co., Ltd Chester's Food Co., Ltd Chia Tai Food Product (Shanghai) Co., Ltd Tacham Agriculture- Industrial Company Limited Tacham Farm Co., Ltd Chia Tai Aquaculture (Zhuhai) Co., Ltd C.P. Intertrade Co., Ltd Yongan Chai Tai Co., Ltd Other Total Grand total 2,074 1,973 4,194 4, Short-term loans 36 Outstanding balance 30 September 31 December Average balance Subsidiaries C.P. Merchandising Co., Ltd. 10,550 4,850 6,189 Bangkok Food Products Co., Ltd. 2,600 2,475 2,739 CPF Food Products Co., Ltd. 2,250 2,150 1,966 Bangkok Produce Merchandising Public Company Limited 2,000 3,050 1,455 Bangkok Agro-Industrial Products Public Company Limited 1,485 2,035 1,902

19 4.2.2 Short-term loans (Continued) Outstanding balance 30 September 31 December Average balance Charoen Pokphand Northeastern Public Company Limited 1,260 1,280 1,326 Charoen Pokphand Industry Co., Ltd. 1,050 1,165 1,109 Rajburi Foods Co., Ltd , B.P. Food Products Co., Ltd CPF IT Center Co., Ltd CPF Investment Limited C.P. Aquaculture (Beihai) Co., Ltd International Pet Food Co., Ltd C.P. Aquaculture (Hainan) Co., Ltd C.P. Aquaculture (Dongfang) Co., Ltd C.P. Food Products, Inc CPF Premium Foods Co., Ltd CPF Training Center Co., Ltd Total 23,038 19,519 18,868 The Company computes the average movement from the outstanding balances of short-term loans at the end of each month excluding accrued interest income Accrued dividend income 30 September 31 December Subsidiaries Charoen Pokphand (India) Private Limited Bangkok Produce Merchandising Public Company Limited Rajburi Foods Co., Ltd Charoen Pokphand Northeastern Public Company Limited B.P. Food Products Co., Ltd Charoen Pokphand Industry Co., Ltd Bangkok Agro-Industrial Products Public Company Limited C.P. Agro-Industry Co., Ltd Bangkok Food Products Co., Ltd Total 354 1,708 37

20 4.2.4 Accrued interest income 30 September 31 December Subsidiaries Long-term loans Outstanding balance 30 September 31 December Average Balance Subsidiaries Charoen Pokphand Foods (Overseas) LLC. 1,460 1,585 1,586 Bangkok Agro-Industrial Products Public Company Limited 1,300 1,600 1,467 Bangkok Food Products Co., Ltd. 1,300 1,600 1,467 Charoen Pokphand Northeastern Public Company Limited Charoen Pokphand Industry Co., Ltd B.P. Food Products Co., Ltd CPF Investment Limited Total 6,216 7,379 6,917 Less current portion (1,756) (1,475) Net 4,460 5,904 The Company computes the average movement from the outstanding balances of long-term loans at the end of each month excluding accrued interest income Accounts payable - trade and others 30 September 31 December 30 September 31 December Ultimate parent company Charoen Pokphand Group Company Limited

21 4.2.6 Accounts payable - trade and others (Continued) 30 September 31 December 30 September 31 December Subsidiaries Bangkok Produce Merchandising Public Company Limited Bangkok Agro- Industrial Products Public Company Limited Bangkok Food Products Co., Ltd Charoen Pokphand Northeastern Public Company Limited Rajburi Foods Co., Ltd CPF IT Center Co., Ltd CPF Food Products Co., Ltd C.P. Agro-Industry Co., Ltd CPF Trading Co., Ltd CPF Training Center Co., Ltd Other Total Associates C.P. Retailing and Marketing Co., Ltd C.P. Vietnam Corporation (Formerly C.P. Vietnam Livestock Corporation) C.P. Cambodia Co., Ltd Retailink (Thailand) Co., Ltd Allianz C.P. General Insurance Co., Ltd Arbor Acres Thailand Company Limited PK Agro-Industrial Products (M) Sdn. Bhd Other Total

22 4.2.6 Accounts payable - trade and others (Continued) 30 September 31 December 30 September 31 December Related companies C.P. Poly-Industry Co., Ltd K.S.P. Equipment Co., Ltd CNC International Co., Ltd C.P. Intertrade Co., Ltd True Leasing Co., Ltd Kasetphand Industry Co., Ltd Qingdao Chia Tai Co., Ltd Dynamic Transport Co., Ltd Ceneplex Co., Ltd Freewill Solutions Co., Ltd C.P. Interfood (Thailand) Co., Ltd Advance Pharma Co., Ltd Other Total Grand total 1, Short-term borrowings Outstanding balance 30 September 31 December Average balance Subsidiaries Thai Prawn Culture Center Co., Ltd C.P. Agro-Industry Co., Ltd Total The Company computes the average movement from the outstanding balances of shortterm borrowings at the end of each month excluding accrued interest expense. 40

23 4.3 Balances of loans/borrowings and interest rates Balances of loans/borrowings and interest rates as at 30 September 2011 and 31 December 2010 were as follows: Average Balance with Balance with interest rate fixed interest rate floating interest rate (%) September December September December September December Short-term loans to subsidiaries ,729 19, Long-term loans to subsidiaries 5,860 7, Short-term borrowings from subsidiaries Key management personnel compensations Key management personnel compensations consist of: Three-month periods ended 30 September Short-term employee benefits Post-employment under defined benefit plans Total Nine-month periods ended 30 September Short-term employee benefits Post-employment under defined benefit plans Total As at 30 September Employee benefit obligations Total

24 4.5 Commitments As at 30 September 2011 and 31 December 2010 the Group had commitments with related parties as follows: Capital commitments 30 September 31 December 30 September 31 December Contracted but not provided for Mainly represents contracts for construction of buildings and structures and purchase of machinery and others Commitments under operating lease agreements 30 September 31 December 30 September 31 December Within one year Over one year but within five years Over five years Total 1,611 1, The Company and certain subsidiaries had lease agreements with related parties covering office premises (including related facilities service agreement), land, farms and vehicles for periods of 1 to 10 years, expiring during 2011 to

25 4.6 Significant agreements As at 30 September 2011 the Group had the following significant agreements with related parties Technical service agreements The Company and certain subsidiaries had technical service agreements with the ultimate parent company, Charoen Pokphand Group Company Limited ( CPG ). Under the terms of the agreements, CPG agrees to research and develop the raw material ingredients for the production of animal feeds for the Company and subsidiaries. In this regard, the Company and subsidiaries are committed to pay the technical service fee, which is calculated from the feed production quantity dependent upon the types of feed as stipulated in the agreements, to CPG. The minimum service fee ranges from Baht 0.1 million to Baht 1.3 million per month. These agreements shall be in effect starting from 1 July 2007 to 30 June The Company and certain subsidiaries have extended the agreements for an additional period until 31 December 2011 with the same conditions and fee rates. In addition, two foreign subsidiaries had agreements to obtain the technical service assistance relating to animal feed manufacturing from CPG. The foreign subsidiaries are committed to pay service fees to CPG in accordance with the terms and conditions stipulated in the agreements Trademark agreements The Company and certain subsidiaries had trademark agreements with the ultimate parent company, Charoen Pokphand Group Company Limited ( CPG ), for the right to use trademark. In this regard, the Company and subsidiaries are committed to pay the trademark license fees to CPG at the rates of 0.2% and 0.4% of the sale value of each product as stipulated in the agreements. These agreements shall be in effect starting from 1 January 2009 to 31 December A subsidiary had a trademark agreement with a related company, Star Marketing Co., Ltd. ( STAR ), for the right to use STAR trademark. In this regard, the subsidiary is committed to pay the trademark license fee to STAR, which is calculated from the sale value under the trademark at the rates as stipulated in the agreement. This agreement shall be in effect starting from 1 January 2008 to 31 December Application system service agreement A subsidiary had an application system service agreement with a related company, Freewill Solutions Co., Ltd. ( Freewill ). Under the terms of the agreement, Freewill agrees to provide the subsidiary the application system service. In this regard, the subsidiary is committed to pay the application system service fee to Freewill at the agreed rate stipulated in the agreement. This agreement shall be in effect starting from 1 January 2009 to 31 December

26 4.6.4 Service agreements for import and export transactions The Company and certain subsidiaries had service agreements with a related company, C.P. Intertrade Co., Ltd. ( CPI ). Under the terms of the agreements, CPI agrees to provide documentation services and others relating to import and export transactions of the Company and subsidiaries. In this regard, the Company and subsidiaries are committed to pay the service fees to CPI at the agreed rate stipulated in the agreements. These agreements shall be in effect since 1 July 2011 to 30 June Accounts receivable - trade and others Note 30 September 31 December 30 September 31 December Related parties 4 2,074 1,973 4,194 4,481 Other parties 13,700 13,839 3,169 3,324 Total 15,774 15,812 7,363 7,805 Less allowance for doubtful accounts (382) (427) (36) (39) Net 15,392 15,385 7, ,766 Bad and doubtful debts expense (reversal of allowance for doubtful accounts) for the: - three-month period ended 30 September (1) 17 - nine-month period ended 30 September (14) 11 (3) 28 The outstanding balances of the problem accounts receivable - trade and others as at 30 September 2011 and 31 December 2010 classified by aging were as follows: 30 September 31 December 30 September 31 December Periods over credit terms: Over 3 months to 6 months Over 6 months to 12 months Over 12 months Total

27 6 Available-for-sale investments Movements during the nine-month periods ended 30 September 2011 and 2010 were as follows: At 1 January 1, Acquisitions/additional investments Currency translation differences 2 (6) Changes in fair value (279) 430 At 30 September 1,327 1,054 At 31 December 1,374 Details of available-for-sale investments Available-for-sale investments as at 30 September 2011 and 31 December 2010 were as follows: Ownership interest (both direct and indirect) (%) September December September December September December Marketable securities Equity securities held as available-for-sale - at fair value True Corporation Public Company Limited - at cost ,510 1, Siam Makro Public Company Limited - at cost Changes in fair value (193) Total 1,327 1,

28 7 Investments in subsidiaries Movements during the nine-month periods ended 30 September 2011 and 2010 were as follows: At 1 January ,080 19,708 Acquisitions/additional investments - - 1,261 1,489 Proceeds from liquidation of subsidiaries - - (416) (42) At 30 September ,925 21,155 At 31 December - 21,080 46

29 Details of investments in subsidiaries and dividend income Investments in subsidiaries as at 30 September 2011 and 31 December 2010, and dividend income for the nine-month periods ended 30 September 2011 and 2010 were as follows: Ownership interest Dividend income (%) Paid-up capital Cost method Impairment At cost - net for nine months ended September December September December September December September December September December September September Non-marketable securities Bangkok Produce Merchandising Public Company Limited ,230 1, ,230 1, Bangkok Agro-Industrial Products Public Company Limited ,500 1,500 2,981 2, ,981 2, Thai Prawn Culture Center Co., Ltd Bangkok Food Products Co., Ltd ,174 1, ,174 1, Klang Co., Ltd Charoen Pokphand Northeastern Public Company Limited ,282 1, ,282 1, Charoen Pokphand Industry Co., Ltd CPF Food Products Co., Ltd ,800 2,800 3,744 2, ,744 2, CPF Training Center Co., Ltd

30 Details of investments in subsidiaries and dividend income (Continued) Ownership interest Dividend income (%) Paid-up capital Cost method Impairment At cost - net for nine months ended September December September December September December September December September December September September CPF IT Center Co., Ltd Seafoods Enterprise Co., Ltd C.P. Agro-Industry Co., Ltd C.P. Merchandising Co., Ltd ,850 1,850 1,850 1, ,850 1,850 1, B.P. Food Products Co., Ltd Bangkok Farm Co., Ltd Pokphand Aquatech Co., Ltd Universal Food and Marketing Co., Ltd Rajburi Foods Co., Ltd International Pet Food Co., Ltd C.P. Aquaculture (Beihai) Co., Ltd C.P. Aquaculture (Dongfang) Co., Ltd C.P. Aquaculture (Hainan) Co., Ltd C.P. Food Products, Inc C.P. Standart Gida Sanayi ve Ticaret A.S ,341 2,

31 Details of investments in subsidiaries and dividend income (Continued) Ownership interest Dividend income (%) Paid-up capital Cost method Impairment At cost - net for nine months ended September December September December September December September December September December September September Charoen Pokphand Foods Kenya Co.,Ltd Charoen Pokphand Foods (Malaysia) Sdn. Bhd. (Formerly Calibre Nature (M) Sdn. Bhd.) ,278 1,278 1,280 1, ,280 1, Charoen Pokphand Foods (Overseas) LLC ,665 1,605 1,394 1,066 (113) (113) 1, Charoen Pokphand Foods Philippines Corporation Charoen Pokphand (India) Private Limited CPF Investment Limited ,724 1,724 1,724 1, ,724 1, Total 22,038 21,193 (113) (113) 21,925 21,080 3,217 4,604 49

32 8 Investments in associates Movements during the nine-month periods ended 30 September 2011 and 2010 were as follows: Note At 1 January - as previously reported 14,601 10, Impact of changes in accounting policies 3 (19) At 1 January - restated 14,582 10, Share of profit of associates 2,976 1, Dividend income from associates (1,374) (1,016) - - Currency translation differences (24) (379) - - Equity in associates - (524) - - Acquisitions/additional investments 6,279 3, Disposals (103) (16) - - Other (2) At 30 September 22,334 13, At 31 December 14,

33 Details of investments in associates and dividend income Investments in associates as at 30 September 2011 and 31 December 2010, and dividend income for the nine-month periods ended 30 September 2011 and 2010 were as follows: Ownership interest (both direct and indirect) Dividend income (%) Paid-up capital Cost method Equity method Impairment At equity - net for nine months ended September December September December September December September December September December September December September September Marketable security CP ALL Public Company Limited ,493 4,493 12,898 7,124 16,898 10, ,898 10,611 1, Total 12,898 7,124 16,898 10, ,898 10,611 1, Non-marketable securities Nava 84 Co., Ltd ,203 1, Ross Breeders Siam Co., Ltd Allianz C.P. General Insurance Co., Ltd Arbor Acres Thailand Co., Ltd C.P. Aquaculture (India) Private Limited C.P. Cambodia Co., Ltd

34 Details of investments in associates and dividend income (Continued) Ownership interest (both direct and indirect) Dividend income (%) Paid-up capital Cost method Equity method Impairment At equity - net for nine months ended September December September December September December September December September December September December September September C.P. Vietnam Corporation (Formerly C.P. Vietnam Livestock Corporation) ,493 1, ,130 1, ,130 1, Charoen Pokphand Holdings (Malaysia) Sdn. Bhd ,650 1, ,650 1, Total 1,547 1,054 5,436 3, ,436 3, Grand total 14,445 8,178 22,334 14, ,334 14,601 1,374 1,016 The Company accounts for its investment in ordinary shares of an associate (CP ALL Public Company Limited), which is a listed company in the Stock Exchange of Thailand, in the consolidated by the equity method. As at 30 September 2011 the fair value of this investment was Baht 67,065 million (31 December 2010: Baht 50,874 million). 52