:: Annual Report 2007
          During the year, the demand for Viscose Rayon Staple Fiber (VRSF) increased steadily and the availability of higher volumes from expansion, coupled with increased export realization and equity-in-income, your Company recorded a net profit of Baht 2,489 Million this year, an increase of 81% over the previous year.

The Company successful commissioned 4th Production line in April 2007, with a rated capacity of 85 tons per day (TPD) of regular VRSF, which is equipped to produce second generation High Wet Modulus – Modal Fiber also. Simultaneously, the activities to construct 5th production line of similar capacity, are underway and scheduled for completion in March 2008. The Company has also undertaken the up-gradation of 1st production line, by replacing the entire spinning line and installing balancing equipment in different sections. This will increase the production capacity by an additional 30 TPD of regular VRSF in July 2008. After completion of expansion and up-gradation, the Company will have a throughput rate of 421 TPD of regular VRSF, an increase of 93% over September 2006. The Company is also in process of constructing a Gas based Carbon Disulphide production facility at Hemraj Industrial Park in Saraburi, to meet its captive requirement for increased VRSF capacity.

While expanding the production capacity, the Company has also undertaken to install additional facilities, with a Capital expenditure of Baht 200 Million, to take care of its Environmental Management System (EMS), which is expected to be completed by July 2008.

To sustain a profitable production growth, the Company faces a challenge to procure additional requirement of its key raw material-Dissolving Pulp, whose prices have now increased to an unpredictable level and still rising. The Company is continuously working on an acquisition possibility of a pulp mill, which would entail a large capital investment.

Considering the increase in profits as also the funds requirement for its expansion and new pulp mill acquisition possibility, the Board of Directors has great pleasure in recommending a higher dividend of Baht 1.60 per share for the year ending 30th September 2007.

On behalf of the Board and all the Stakeholders of the Company, I take this opportunity to thank the Management and all Employees of the Company for a stupendous performance at a time when export competitiveness of most of the Thai Companies is under strain due to continuous strengthening of Baht.

On behalf of the Board of Directors.

P.M. Bajaj
President and Director