Change of Accounting Method for Inventory Valuation

BackMar 20, 2007

-Translation-

RPC/HO-SET/ELICID-006/07

March 19 th, 2007

Subject : Change of Accounting Method for Inventory Valuation

To : President The Stock Exchange of Thailand

Rayong Purifier Public Company Limited states the Inventory Valuation at Cost or Net Realisable Value, whichever is lower. The Company will change the Cost Valuation Method from First In First Out (FIFO) Method to Weighted Average Method, effective January 1st, 2007 onwards. This change of Accounting Method was approved by the Board of Directors during the meeting held on December 21, 2006.

Weighted Average is one of the generally accepted Accounting Method. It is appropriates for the Company to facilitate management and planning under world oil price fluctuating circumstances. It truly reflects Company performance and also in line with other companies in Petroleum Industry in Thailand. Most companies in this sector use Weighted Average as their Cost Valuation Method. The Company already submitted request for official approval to the Revenue Department regarding this change.

Please be so informed.

 

Sincerely Yours,

 

Mrs. Siraporn Krishnakan
Assistant to Managing Director

 

Investor Relations / Corporate Administration Office
Tel. 0-2515-8671
e-mail ir@rpcthai.com