ETIKA INTERNATIONAL HOLDINGS LIMITED

our global
Presence
Operation
Base
LEGEND
Mexico
Honduras
Cuba
Belize
Grenada
Trinidad and Tobago
Suriname
GuyanaColombia

Our facilities in the operation base have expanded
as planned and our sales have reached more than
70 countries around the world.
Mauritius
Papua New Guinea
Federated States
of Micronesia
UAE
Lebanon
Iraq
Sri Lanka
The Gambia
Sierra Leone
Liberia
Ghana
Ivory
Coast
Senegal
Iran
Pakistan
Guinea-Bissau
Guinea
Kazakhstan
Netherlands
Turkmenistan
Uzbekistan
Mali
Burkina Faso
Nigeria
Cameroon
Congo
Malawi
Gabon
Angola
Namibia
Zimbabwe
Madagascar
Comoros Island
Niger
Libya
Togo
Benin
Afghanistan
Cape Verde
Maldives
New Zealand
INDONESIA
Malaysia
Kiribati
Fiji
Palau
Myanmar/
Burma
Vietnam
China Korea
Marshall
Islands
Philippines
Brunei
Thailand
Laos
Singapore
Cambodia
Australia
Samoa
Hong Kong
Macau
Taiwan
Tahiti

Contents
04 Corporate P rofile
10 Corporate Milestone
14 Message From The Chairman
18 Review of Operations
26 Financial Highlights
28 Risk Factors
30 Group Structure
31 Corporate I nformation
32 Board of Directors
38 Key Management
40 Corporate Governance
49 Financial Statements
128 Statistics of Shareholdings
130 Notice of Annual General Meeting
133 Notice of Books Closure
Proxy Form

Dairies
Division
Trading &
Frozen
Food
Division
Nutrition
Division
Others
Division

Corporate Profile
Listed on SGX Catalist (previously known as the SGX-SESDAQ)
on 23 December 2004 and upgraded to the Mainboard on
18 June 2009, E tika International Holdings Limited (“Etika” or
“the Group”) is one of the world’s largest manufacturers and
distributors of sweetened condensed milk and a leading
regional Food and Beverage (“F&B”) Group.
The Group’s operating facilities are located in Malaysia,
Indonesia, Vietnam and New Zealand.
Apart from Malaysia, the Group’s products can be found in
over 70 countries around the world, including ASEAN, North
and Central Asia, Middle East, Asia Pacific region, North, South
and Central America, the Caribbean and Africa. The Group’s
products are traded under various brand names like Dairy
Champ, Vixumilk, Goodday, Mr. Farmer, Sky Fresh, Gourmessa,
Horleys, P olygold, Daily Fresh, Family and Salam mie.
Helmed by an experienced management team whom are
industry veterans, possessing wide range of expertise in
strategic planning, business development, operational and
production skills, the Group is well-positioned to anchor its
name as a leading regional F&B Group.
Founded in 1997, the Group started as a manufacturer and distributor of sweetened
condensed milk and evaporated milk and in the years following its listing, has
evolved into a diversified regional F&B player vide several acquisitions. Today, the
Group has the following operating divisions:
Dairies
Division
Trading &
Frozen
Food
Division
Nutrition
Division
Others
Division
Etika Annual R eport 20124

Corporate Profile
The Dairies Division which began as the Group’s principal business
is involved in the manufacturing and distribution of milk products,
comprising mainly sweetened condensed milk and evaporated
milk. It also repacks and distributes complementary products such
as full cream milk powder, instant coffee powder and tea dust. This
Division’s product offering were later expanded to include UHT milk,
soy milk and pasteurised milk products via acquisitions in Vietnam
and Malaysia. Today, the Dairies Division continues to be the Group’s
core business division and main growth driver.
The Division’s manufacturing plants are based in Malaysia, Indonesia
and Vietnam. In Malaysia, the plants are located in Meru Industrial
Park, Klang, Selangor and Johor Bharu. The Indonesian plant is located
in Surabaya and the Vietnamese plant is located in Cu Chi District, Ho
Chi Minh City.
The Division’s very first manufacturing facility operated by Etika Dairies
Sdn Bhd is based in Meru Industrial Park, Klang. This facility is primarily
engaged in the manufacturing of sweetened condensed milk and
evaporated milk. Currently, it is embarking on a new production line
for UHT milk with trial run targeted in December 2012. Presently,
its products are distributed domestically in Malaysia and in many
other parts of the world under the brand name Dairy Champ as
well as other in-house brands. In the domestic market, the Group’s
products are supplied to all major hypermarkets, supermarkets,
dealers, wholesalers, food service outlets such as restaurants, coffee
shops and Mamak/T eh Tarik stalls. Its export market covers over 60
countries around the world, including ASEAN, North and Central Asia,
Middle East, Asia Pacific region, North, South and Central America, the
Caribbean and A frica.
Susu Lembu Asli (Johore) Sdn Bhd which operates the plant in Johor
Bahru, is engaged in the manufacturing of pasteurised milk and
other beverages. The distribution of its products is undertaken by
its marketing arm, Susu Lembu Asli Marketing Sdn Bhd, which has
a warehouse and office in Petaling Jaya. Both companies started
operations more than 40 years ago as a small-scale fresh milk
distributor with their activities mainly concentrated in the state of
Negeri Sembilan. Their product offering includes full cream milk, low-
fat milk, flavoured milk, soya milk and fruit drinks under the brand
name of Goodday, Mr. Farmer and Sky Fresh. In addition to our own
brand name, we also contract pack for Starbucks pasteurised milk
for the Malaysian market. Our products are distributed to major
hypermarkets, supermarkets, dealers, wholesalers, on-premise outlets
as well as restaurants in Peninsular Malaysia. We have also started
exporting our Goodday pasteurised fresh milk to Singapore and it is
mainly distributed via NTUC stores.
Our Indonesian subsidiary, PT Etika Marketing has set up a production
line for sweetened condensed milk in the factory space of its sister
company, PT Sentraboga Intiselera in Surabaya. The trial run of this
sweetened condensed milk plant will commence in January 2013.
Our Vietnamese subsidiary, Tan Viet Xuan Joint Stock Company
(“TVX’) is involved in the production, selling and distribution of UHT
fresh milk, milk products and beverages. In particular, its products
include UHT milk, soy milk and condensed milk registered under
the brand name of Vixumilk and is one of the larger domestic milk
processors in Vietnam. TVX’s products are extensively distributed in
Vietnam, covering the Midlands, Mekong Delta, Eastland, Westland
and Ho Chi Minh City via distributors, trade centers, supermarkets,
bookstores and other retailers.
Currently, the Group is in the process of expanding its operations
in Vietnam with an investment in a piece of land in the Vietnam
Singapore Industrial Park (“VSIP”) II in Binh Duong district for the
purpose of setting up a plant producing dairy products. VSIP II which
is located in north of Ho Chi Minh City and south of Vietnam, is an
integrated industrial park with full infrastructure facilities including
power, water, sewage and telecommunications. This plant once
operational will cater to the increasing demand both from the
domestic as well as export markets especially from the Indochina
region and its neighbouring countries.
Etika Annual R eport 20125

Etika Annual R eport 20126
Pok Brothers Sdn. Bhd. (“P ok Brothers”), one of Malaysia’s leading
frozen food and premium food wholesaler started as a general store
business in Petaling Jaya in 1963 and from this humble beginning,
it has managed to transform itself into one of the leading frozen
food companies in Malaysia. As a premium food wholesaler, Pok
Brothers imports and distributes food products, both in raw and
processed form, with particular emphasis on servicing the hospitality
and consumer-based food industry. Its major clients include major
5-star hotels, airlines, cruise ships, hyper/supermarkets, bakeries,
butcheries, fast-food chains, grocery stores, food processors and
other wholesalers. Pok Brothers is also an appointed importer and
distributor of proprietary goods for several internationally known
restaurant chains in Malaysia such A&W, Chili’s, TGIF and Bubba
Gump.
Most of Pok Brothers’ supplies are sourced internationally, in particular
from the United States, E urope, A ustralia and New Zealand.
It operates out of Glenmarie, Shah Alam and Meru, Klang, Selangor
and has branches in major cities within Peninsular Malaysia, all with
coldroom facilities.
Pok Brothers currently has 3 sub-divisions:
• Frozen Food trading
• Butchery and Bakery business
• Distribution business
De-luxe Food Services Sdn Bhd (“DFS ”) comprises 2 divisions; a bakery
division located in Meru, Klang that manufactures speciality European
bread to be supplied to hotels, restaurants, cafes and supermarkets as
well as Subway Malaysia, and a butchery division that manufactures
and processes cold cuts, sausages, portion control meat and smoked
salmon to be supplied to supermarkets, hotels and restaurants. Its
Gourmessa brand of cold cuts and sausages are well distributed and
displayed in most supermarkets and retail stores.
In addition to the frozen bakery range, the Group also produces
fresh breads and buns through the Family Group consisting of Family
Bakery Sdn Bhd, Daily Fresh Bakery Sdn Bhd and Hot Bun Food
Industries S dn Bhd.
Family Group’s manufacturing facility is located in Meru, Klang and
produces fresh breads and buns in Malaysia under the brand name
of Daily Fresh and Family. Their products are distributed nationwide
to hypermarkets, supermarkets, factory canteens, petrol stations,
grocery stores and convenience shops.
Corporate Profile

Etika Annual R eport 20127
Corporate Profile
Naturalac Nutrition Limited (“NNL”), a marketer of branded sports
nutrition and weight management food products to athletes and
mass consumer markets trades under the Horleys™ brand name and
other proprietary brands such as Sculpt™ (a weight management
product tailored for women), Replace™ (an isotonic sports drink in
both powder and carbonated format) and Pro-Fit™ (a high protein
ready-to-drink beverage). The key benefits of these products are
weight management (both muscle mass gain and weight loss
through satiety control), energy delivery and hydration.
NNL became a “virtual” company in 2002 in order to enable its
management to focus efforts on key areas of marketing and product
development. As such, this marketing company outsources many of
its key functions including manufacturing, distribution and selling to
third party providers, both in New Zealand and Australia. This lean
business model, akin to popular sports apparel brands, has provided
NNL with the needed flexibility and speed in delivering high quality
products to its customers, while focusing and leveraging on its key
competency in product development, advertising and promotion
and customer service. This model has reduced the need for substantial
resources, both financial and non-financial, otherwise required for
setting up of processing and production centers.
By concentrating on its core competencies, NNL has been able
to significantly shorten the time normally taken in its product
development from concept to market. This ability is considered an
edge over its competitors.
In New Zealand, NNL’s products are primarily distributed through
the route channels (gyms, health food shops, specialty stores and
specialty nutrition shops) and retail channels (supermarkets, oil
and convenience retail outlets) whilst its Australian sales are made
predominantly through the route channels.
The Group entered into the ready-to-drink segment via a joint
venture to establish New Zealand’s first state-of-the-art, UHT Aseptic
PET bottling line for dairy, juice and water products with the official
opening of its plant on 1 September 2011. The plant located at
Whakatu Industrial Park, near Hastings is ideally-suited for bottling
operations with its existing resources, including trade waste discharge
rights and tanker access. Production at the plant commenced in the
fourth quarter of FY2012. This marks a major step forward for Etika
in the contract manufacturing of dairy, juice and water products for
both the local and export markets.

Others
Division
Packaging
General Packaging Sdn Bhd is a manufacturer of tin cans with
production facilities located in Petaling Jaya and Meru, Klang,
Selangor. It supplies its products to food-related business customers,
particularly condensed and evaporated milk manufacturers as well as
non-food business customers (e.g. aerosol cans). Apart from catering
to the Malaysian market, plan is afoot, whenever feasible, to export
the finished goods or set up manufacturing facilities together with
Dairies Division in line with the Group’s overseas expansion plan.
This Packaging Division is part of the Group’s vertical integration
strategy and as such its production capacity is used mainly for the
Dairies Division.
Beverage
Etika Beverages Sdn Bhd is a canned beverages manufacturer based
in Seremban, Negeri Sembilan. Its plant produces both carbonated
and non-carbonated drinks under the brand name of “P olygold”. In
addition it also produces “Air Champ” energy drink and “P ower Champ”
isotonic sports drink.
Although it is still a relatively small business for the Group, the
Beverage Division is riding on the Group’s existing export and
domestic nationwide distribution networks under the Dairies Division
in order to gain greater market penetration.
Noodles
PT Sentrafood Indonusa (“PTSF”), which has a manufacturing facility in
Karawang, West Java manufactures and distributes its instant noodles
under the trademark of Salam mie and is also an OEM manufacturer
for a few private label products (eg. Mie Sehati, Pandaroo and Myam).
PTSF’s products are distributed locally in Indonesia and overseas
via authorized distributors to countries such as Malaysia, Brunei
Darussalam, Algeria, Madagascar, China, Hong Kong and A ustralia.
Restaurant
On 10 July 2012, the Group signed an exclusive 10 year International
Multiple Unit Franchise Agreement with US-based Cajun Global
LLC for exclusive rights to develop and operate “Texas Chicken”
restaurants in Malaysia and Brunei from 2013 to 2022. This marks the
Group’s maiden foray into the fast food segment. The restaurants will
serve American-styled, big juicy full-flavoured fried chicken, French
fries, honey butter biscuits, mashed potatoes, coleslaw, burgers and
sundae, to name a few.
This partnership will expand Etika Group’s portfolio as well as enable
the Group to tap on the synergistic opportunities of its existing trading
and frozen food and beverage divisions. In addition, this downstream
expansion is part of Etika Group’s growth strategy to increase the
presence of Etika Group’s identity and brand in key markets such as
Malaysia and in neighbouring countries in A sia.
There are plans in the pipeline for the first four outlets to be opened in
Klang Valley, Malaysia by the second quarter of FY2013.
Etika Annual R eport 20128
Corporate Profile

Dairies
Division

Corporate History Chart
Revenue (RM’000)
Etika Annual R eport 201210
corporate milestone
PRE-LISTING
650,000
800,000
700,000
850,000
750,000
900,000
1,000,000
600,000
550,000
500,000
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Formation of
joint venture
Launch of
“Dairy Champ”
brand
throughout
Malaysia
Commencement
of export
P 1999 P 2000 P 2001 P 2002 P 2003P 1998P 1997
POST-LISTING
EIHL was
listed on
SGX-SESDAQ
P 2004

REVENUE (RM’000)
PROFIT AFTER TAX (RM’000)
PRE-LISTING
POST-LISTING
Profit after tax (RM’000)
POST-LISTING
85,000
70,000
90,000
95,000
100,000
80,000
75,000
65,000
60,000
55,000
50,000
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
(10,000)
0
Acquisition of pok
brothers group
Acquisition of
Naturala c
Nutrition
Limited
Acquisition of 65.04%
equity interest in
General Packaging
Sdn Bhd (“GPSB”)
Completed rights
issue exercise
Increased equity
holding in GPSB
from 65.04% to
99.04%
Upgraded to
SGX Mainboard
Acquisition
of TVX
acquisition of susu
lembu group
acquisition of ptsf
& ptsb (Balance 30%)
Signed Franchise
agreement with
Cajun Global LLC
Acquisition of a
canned beverage
manufa cturing
plant
Acquisition of PTSF
and PTSB (70%)
Acquisition of
Family Group
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011FY 2006P 2005
Etika Annual R eport 201211
FY 2012

corporate milestone
Clarity Valley Sdn Bhd was used as a joint venture (“JV”) vehicle between the Tan Brothers (Motif
Etika Sdn Bhd) and Messrs Mah Weng Choong, Khor Sin Kok and others (Jasnida Sdn Bhd)
to engage in the manufacturing and distribution of milk products in Malaysia. Subsequently,
Clarity Valley S dn Bhd changed its name to Etika Dairies S dn Bhd.
Etika Dairies Sdn Bhd completed installation of its maiden modern and fully automated
sweetened condensed milk production line in our production factory in Meru, Klang, Selangor,
Malaysia.
Commercial launch of sweetened condensed milk under the Dairy Champ brand throughout
Malaysia.
Commencement of export of sweetened condensed milk to Malawi.
Etika International Holdings Limited (EIHL) was incorporated in Singapore on 23 December
2003 as a private limited company.
Pursuant to a Restructuring Exercise, EIHL became the holding company of Etika Dairies Sdn
Bhd on 8 November 2004.
EIHL was converted into a public limited company on 10 December 2004. Subsequently, it was
listed on SGX-SESDAQ (now known as SGX Catalist) on 23 December 2004.
1st acquisition pursuant to our listing, we acquired Pok Brothers Group, one of Malaysia’s
leading frozen food and premium food wholesaler, on 8 February 2006 vide our wholly-owned
subsidiary, Etika Foods (M) S dn Bhd for a consideration of approximately RM21.5 million.
The Group proposed a renounceable non-underwritten rights issue of up to 68,652,060 new
ordinary shares in the capital of the company at an issue price of S$0.095 for each rights share
with up to 17,163,016 free detachable warrants.
Completed acquisition of Naturalac Nutrition Limited (“NNL”) based in New Zealand vide our
wholly-owned subsidiary Etika (NZ) Limited on 8 February 2007 for a consideration of NZD7.8
million.
Completed acquisition of 65.04% equity interest in General Packaging Sdn Bhd (“GPSB”)
(formerly known as M.C. Packaging (M) Sdn Bhd) on 25 April 2007 vide our wholly-owned
subsidiary Etika I ndustries Holdings S dn Bhd for a consideration of RM7.8 million.
The Group completed the take-over of an ongoing consumer distribution business involved
in chilled and dry-ambient consumer products on 1 May 2007. This business is housed under
Pok Brothers Group to complement our Trading and Frozen Food Division.
On 10 May 2007, we completed the renounceable non-underwritten rights issue (proposed
in January 2007) which resulted in issuance of 17,162,931 free detachable warrants and net
proceeds of S$6.34 million.
Completed acquisition of a canned beverage manufacturing plant by Etika Beverages Sdn Bhd
(“EBSB”) on 3 July 2007 for a consideration of RM3.8 million.
Increased equity holding in GPSB from 65.04% to 99.04% for purchase consideration of
approximately RM6.7 million on 31 October 2007.1997
1999
2003
2004
2006
2007
Jan
Feb
Mar
Dec
Dec
Nov
Dec
Feb
Jan
Feb
April
May
July
Oct
yearmonth Major developments
Etika Annual R eport 201212

corporate milestone
Entered JV in New Zealand via Etika Dairies NZ Limited (“EDNZ”), our newly incorporated
subsidiary in New Zealand for an initial stake of 50.7% on 18 March 2009, which was later
increased to 60.7% in December 2009.
Upgraded to SGX Mainboard on 18 June 2009.
Entered into a conditional sale and purchase agreement for proposed acquisition of 100%
equity interest in Tan Viet Xuan Joint Stock Company (“TVX”) on 24 July 2009 for an estimated
purchase consideration of USD8.45 million.
Completed acquisition of wholly-owned subsidiary in Indonesia, PT Vixon Indonesia on 30
September 2009. PT Vixon Indonesia serves as the main distributor of Etika Group’s products -
in particular Dairy Champ in I ndonesia.
Completed the acquisition of 100% equity interest in TVX on 9 April 2010 for approximately
USD9.0 million.
Signed syndicated financing facilities of RM368 million with a consortium of three leading
Malaysian financial institution groups on 4 May 2010.
Entered into a conditional sale and purchase agreement for the proposed acquisition of 100%
equity interest in Family Bakery Sdn Bhd, Daily Fresh Bakery Sdn Bhd and Hot Bun Food Industries
Sdn Bhd (“ Family Group”) on 4 June 2010 for a cash consideration of RM18.68 million.
Entered into a conditional sale and purchase agreement for the proposed acquisition of 100%
equity interest in PT Sentrafood Indonusa (“PTSF”) and PT Sentraboga Intiselera (“PTSB”), an
Indonesian instant noodle manufacturer and distributor on 5 July 2010 for an aggregate
consideration of approximately IDR19.1 billion.
Entered into a conditional sale and purchase agreement for the proposed acquisition of 100%
equity interest in Susu Lembu Asli (Johore) Sdn Bhd (“SLA J”) and Susu Lembu Asli Marketing
Sdn Bhd (“SLA M”), collectively known as “Susu Lembu Group” on 19 July 2010 for a cash
consideration of RM89.5 million.
Completed the acquisition of 100% equity interest in Family Group on 1 October 2010. Etika
ventures into the manufacturing and distribution of fresh baked breads and buns.
Completed the acquisition of 70% equity interest in PTSF and PTSB on 6 October 2010, for an
aggregate consideration of approximately IDR24.2 billion, marking the Group’s entry into the
huge instant noodles industry.
Allotment and issuance of 267,290,764 Bonus Shares on 12 October 2010
Completed the acquisition of 100% equity interest in Susu Lembu Group on 4 January 2011.
Completed the acquisition of balance 30% equity interest in PTSF and PTSB on 4 July 2011.
Signed an International Multiple Unit Franchise Agreement with US-based Cajun Global LLC on
10 July 2012 for exclusive rights to develop and operate “Texas Chicken” restaurants in Malaysia
and Brunei over next 10 years from 2013 to 2022.
Entered into a subscription agreement on 6 December 2012 with Tee Yih Jia Food Manufacturing
Pte Ltd (“TYJFM”), a leading frozen foods manufacturer in Singapore whereby Etika will allot
and issue TYJFM 75,000,000 new ordinary shares at S$0.1998 each or a total consideration of
S$14,985,000.2009
2010
2011
2012
Mar
June
July
Sept
April
May
June
July
Oct
Jan
July
July
Dec
yearmonth Major developments
Etika Annual R eport 201213

Dear Valued Shareholders,
It is with pleasure that I present to you the results of E tika International
Holdings L imited for the financial year ended 30 S eptember 2012
(“FY2012”). The past financial year has proved to be a challenging
year for the G roup arising from the current global economic crisis.
Dato’ Jaya J B Tan
Non-Executive Chairman

message from
the chairman
However, despite the difficult market conditions, the
Group has remained focus and steadfast in its efforts to
position itself as a leading regional Food and Beverage
Group with global reach.
Etika Annual R eport 201215
FINANCIAL REVIEW
For the year ended 30 September 2012, the Group recorded higher
revenue of RM985 million, an increase of 12% compared to RM880
million reported in the previous year, driven by the increase in
revenue reported by three out of four business segments. The Dairies
Division continues to be the main driver of the Group in terms of
revenue and earnings, accounting for 72% of the Group’s revenue
followed by the Trading and Frozen Food Division and the Nutrition
Division contributing 20% and 5% respectively. The Others Division
namely packaging, beverage and noodles business accounted for the
remaining 3%.
The Group’s gross profit margin increased slightly from 20% to 21%
in FY2012. The rising prices of raw materials especially skimmed
milk, buttermilk, whey milk powder and sugar has been offset by the
gradual increase in selling prices over the year.
Although operating expenses increased from RM140 million to
RM153 million, an increase of RM13 million or 9%, the Group
managed to register an operating profit after tax of RM21 million, a
decrease of 28% over the previous financial year attributed by the
exceptional income relating to the recognition of a one-off non-
operating gain on bargain purchase arising from the acquisition of
PT Sentrafood Indonusa and PT Sentraboga Intiselera of RM10 million
in FY2011. Excluding this exceptional income, the Group’s profit after
tax increased by 14%.
CORPORATE DEVELOPMENT
The series of acquisitions in FY2010 which were completed in FY2011
allowed Etika to better cater to the various segments within the food
and beverage industry and to tap on the growing consumption trend
of ready-to-drink milk segment.
The UHT Aseptic PET bottling plant in Hawke’s Bay, New Zealand
which was officially opened in September last year began commercial
production in the 4th quarter of FY2012 after experiencing some
commissioning delays and a lengthy dairy export registration process
with the New Zealand Ministry of Primary Industries. The plant is now
fully commissioned, validated and certified for both juice and dairy
export manufacturing.
On 10 July 2012, the Group’s wholly-owned subsidiary, Texas Chicken
(Malaysia) Sdn Bhd signed an exclusive franchise agreement with
US-based Cajun Global LLC to develop and operate “Texas Chicken”
restaurants in Malaysia and Brunei over the next ten years. This
downstream expansion into high-quality and branded fast food
restaurant chain is aimed to tap on the synergistic opportunities of
the Group’s existing frozen food and beverage products which in turn
will boost “Etika” brand name. The first four “Texas Chicken” outlets
are expected to open for business in the Klang Valley by the second
quarter of FY2013.
Furthermore, we are currently in the process of expanding our
operations in Vietnam with our plans to set up a plant producing
dairy products in the Vietnam Singapore Industrial Park II in Binh
Duong district. This plant, once operational will cater to the increasing
demand both domestically as well as export markets especially within
the Indochina region and its neighbouring countries.

message from the chairman
Signing Ceremony
between Cajun Global LLC
and Texas Chicken (Malaysia)
Sdn Bhd on 10 July 2012
Etika Annual R eport 201216
For the year ended 30 September
2012, the Group recorded higher
revenue of RM 985 million, an
increase of 12% compared to
RM880 million reported in the
previous year, driven by the
increase in revenue reported
by three out of four business
segments.
In line with the financing required to fund the Group’s business, Etika
has entered into a subscription agreement on 6 December 2012 with
Tee Yih Jia Food Manufacturing Pte Ltd (“TYJFM”), a leading frozen
foods manufacturer in Singapore. Pursuant to the agreement, Etika will
allot and issue to TYJFM 75,000,000 new ordinary shares at S$0.1998
each or a total consideration of S$14,985,000. The net proceeds of
S$14,955,000 raised from this arrangement will be utilised equally
for capital expenditure and working capital of the Group. These
new ordinary shares will not rank for any dividend, right, allotment
or other distributions, declared and/or announced by the Company
on or before the completion date. Completion of the subscription is
conditional upon inter alia, receipt of approval in–principle from the
SGX–ST for the listing of and quotation of the new shares.
FUTURE OUTLOOK AND PROSPEC TS
We anticipate that with consumer acceptance, the demand for our
existing and new products is expected to increase and drive sales
volume. While the general market trends points towards higher
costs for major raw materials, we have been able to mitigate this
effect through the increase in selling prices and improvements in
operational efficiency. These measures will continue to yield positive
results for our bottom line in the near future.
Over the last 12 months, the Group has been actively strategizing
and implementing ways to expand the business and enhance greater
synergies from its different operating divisions. Looking ahead, the
Dairies Division in Malaysia is expected to commence trial run for the
new UHT products in December 2012. The sweetened condensed
milk plant in Surabaya, Indonesia is expected to commence its trial
run in January 2013.
Given the encouraging present sales volume and prices, together
with the expected additional sales from the above launches, along
with the opening of the fast food chain of restaurants, the Group is
prepared to face the world economic uncertainty and expand our
horizons. We will strive to further sharpen our competitive edge
and broaden our capabilities to meet any challenges and capitalise
on untapped market opportunities. As such, the Management will
remain committed to driving top and bottom-line growth and to
return value to our shareholders.
DIVIDEND AND APPRECIATION
To show our appreciation to our loyal shareholders, the Board has
recommended a tax exempt (1-tier) final dividend payment of 0.3
Singapore cents per share to be approved by the shareholders at
the forthcoming Annual General Meeting. The Company has paid an
interim tax exempt dividend of 0.5 Singapore cents per share thereby
bringing the total dividend for the year to 0.8 Singapore cents per
share as compared to 1.2 Singapore cents paid in FY2011.
On behalf of the Group, I would like to extend our sincere appreciation
to our customers, principals, suppliers, business partners both locally
and globally and bankers for their steadfast support. We would like
to acknowledge our valued shareholders and investors for their
continued support and confidence throughout the years.
On that note, I would also like to take this opportunity to recognise
the efforts of our management and staff in tirelessly contributing to
the success and continued growth of the Group.
And last but certainly not least, I would like to extend my appreciation
to my fellow board members for their continuous support and
invaluable advice.
DATO’ J AYA J B TAN
Chairman
7 December 2012

Trading and
FROZEN FOOD
Division

review of op erations
Etika International Holdings Limited (“Etika” or “the Group”), one
of the world’s largest manufacturers and distributors of sweetened
condensed milk and a leading regional F ood and B everage
(“F&B”) Group, had ended its financial year on a positive note.
Despite the difficult market conditions arising from the current
global economic crisis, the G roup managed to post a set of
reasonable results.
Etika’s core business segments during the previous financial year
were as follows:
a) Dairies Division
b) Frozen Food Division  - comprising frozen food trading,
butchery and bakery sub-divisions and the noodles
manufacturing and distribution business
c) Packaging Division
d) Others Division  - comprising nutrition and beverage
business
Etika Annual R eport 201218
During the current financial year, the Group’s business segments
have been reorganised for better evaluation of the nature and
financial effects of the business activities and the economic
environment in which the Group engages and operates as
follows:

a) Dairies Division
b) Trading and Frozen Food Division  - comprising frozen
food trading, butchery and bakery sub-divisions and the
distribution business
c) Nutrition Division
d) Others Division  - comprising packaging, beverage, noodles
and restaurant business

Etika Annual R eport 201219
CONSOLIDATED INC OME STATEMENT
The Group achieved a better top line performance for three of the
four business segments. The Dairies Division continued to be the
main driver of the Group in terms of revenue and earnings for the
period under review. The Group recorded an increase of 12% in its
turnover from RM880 million to RM985 million. The improvement
in revenue was significantly contributed by the Dairies Division of
RM706 million; followed by the Trading and Frozen Food Division
and the Others Division which contributed RM196 million and
RM28 million respectively. The turnover for the Nutrition Division
was flat at RM55 million, a marginal reduction of 1% as compared
to the previous financial year.
The increase in revenue was accompanied by the increase in
cost of goods sold of RM81 million or 12% from RM699 million
to RM780 million, with the gross profit margin increasing slightly
from 20% to 21%. The upward prices of raw materials especially
skimmed milk, buttermilk, whey milk powder and sugar has been
cushioned by the gradual implementation of increase in selling
prices over the year.
The Group’s EBIT increased by an encouraging 25% year-on-
year (“y-o-y”) from RM45 million to RM56 million after excluding
the one-off gain on bargain purchase of RM10 million which
arose from the acquisition of PT Sentrafood Indonusa and PT
Sentraboga Intiselera in the previous financial year. The y-o-y
Group PAT increased by 14% from RM18 million to RM21 million.
Overall, the Group’s operating expenses increased by RM13 million
or 9% from RM140 million to RM153 million. Major increases were
seen in the selling and marketing, warehouse and distribution
expenses. The selling and marketing expenses increased by RM15
million or 34% from RM44 million to RM59 million while the
warehouse and distribution expenses increased by RM6 million
or 16% from RM33 million to RM39 million. The increase was
principally due to more aggressive advertising and promotion
campaigns undertaken by the Group to promote sales, increase
in staff costs and transportation charges.
However, administrative expenses registered a reduction of
RM7 million or 13% from RM53 million to RM46 million resulting
principally from the one-off legal costs and stamp duty charges
incurred for the syndication facility in the previous year.
Higher capital expenditure were incurred together with higher
utilisation of trade lines to support the increase in growth has
resulted in finance costs increasing by RM5 million or 23% from
RM21 million to RM26 million.
The Group’s tax expense for the current year was significantly higher
by 69% or RM4 million from RM5 million to RM9 million, with an
effective tax rate of 31% as compared to 24% (after excluding the
gain on bargain purchase arising from acquisition of subsidiaries)
in the preceding year. This was due to losses incurred by certain
subsidiaries for which group relief is not available and the reversal
of deferred tax asset of certain loss making subsidiaries.
For FY2012, basic earnings per share were RM0.041 as compared
to RM0.054 in FY2011.
STATEMENT OF FINANCIAL POSITION
The Group ended the financial year with its equity attributable to
shareholders increasing from RM223 million to RM231 million and
a healthy cash position moving up from RM29 million to RM41
million. Net assets value per share increased marginally from
RM0.42 to RM0.43, an increase of 3%.
Non-current assets increased by RM59 million which was mainly
due to additions of property, plant and equipment of RM49
million arising from the completion of the two storey factory-
cum-warehouse with attached multi-storey office and the setting
up of the UHT manufacturing facility incurred by the Dairies
Division, the renovation and extension of the factory space and
purchase of machineries incurred by the Trading and Frozen Food
Division and the setting up of the sweetened condensed milk
plant in Surabaya, Indonesia. The acquisition of a piece of land
in Vietnam resulted in the increase in prepaid lease payment for
land of RM11 million.
review of operations

review of operations
Etika Annual R eport 201220
There were no significant changes in the current assets except for
the reduction in inventories of RM15 million and the increase in
cash and cash equivalents of RM12 million.
Current liabilities increased by RM49 million due mainly to the
increase in trade and other payables of RM14 million which were
in line with the increase in cost of sales and the increase in bank
borrowings.
Total bank borrowings for the Group amounted to RM427 million
representing an increase of RM37 million over the preceding
year. The increase was mainly due to additional term loans drawn
down for financing of capital expenditure and higher utilisation of
trade facilities to support the higher revenue. With the increase in
borrowings, the Group’s debt to equity ratio increased marginally
from 1.8 times to 1.9 times which is within the 3 times stipulated
by the syndicated lenders.
CASH FLOW POSITION
Overall, the Group’s cash and cash equivalents rose to a healthy
balance of RM34 million from a negative balance of RM3 million, an
increase of RM37 million due to the net effects of the following:
i) an increase in net cash generated from operating activities
of RM78 million from RM20 million to RM98 million
due to tightening and improvement in working capital
management.
ii) a reduction in net cash used in investing activities of RM60
million from RM144 million to RM84 million whereby in the
previous year, RM103 million was utilised for the acquisition
of subsidiaries.
iii) a reduction in net cash generated from financing activities of
RM74 million from RM96 million to RM22 million principally
due to the significant repayment of bank borrowings
amounting to RM459 million and interest charges of RM20
million in the current financial year.
SEGMENTAL REVIEW BY BUSINESS DIVISIONS
Dairies Division remains the core business of the Group,
accounting for 72% of the revenue, followed by the Trading and
Frozen Food Division and the Nutrition Division contributing 20%
and 5% respectively. The Others Division, comprising of packaging,
beverage and noodles business accounted for the remaining 3%.
The Dairies Division contributed an impressive profit after tax of
RM37 million followed by the Nutrition and Trading and Frozen
Food Divisions of RM2 million and RM1 million respectively.
However, these positive contributions to the Group’s profit after
tax were impacted negatively by losses incurred by the noodles
business.
DAIRIES DIVISION
The Dairies Division continues to be the major contributor to the
Group in terms of revenue and profit generated. The Division
delivered an impressive growth of 16% in revenue of RM706
million over the preceding year of RM609 million.
In the Dairies Division for Malaysia, both local and overseas
market registered increase in sales volume and net selling price
per carton year–on–year. The revenue growth was also driven
by sales in overseas market which registered a growth of 8% or
RM27 million with the main markets from Africa, Indonesia and
Phillipines whilst local sales increased by 24% or RM69 million.
Profit after tax increased by 52% to RM37 million from RM24
million in the preceding year.
Segmental assets grew by 9% from RM432 million to RM471
million principally due to increase in capital expenditure while
segmental liabilities increased by 10% from RM398 million to
RM439 million principally due to additional drawdown on the
syndication facility.
TRADING AND FROZEN FOOD DIVISION
Despite the challenging environment that was faced by the
division whereby competitors were reducing their prices in order
to secure a bigger market share, the Trading and Frozen Food
Division managed to register a revenue growth of 4% from RM189
million to RM196 million in the current year.
The Division registered a lower profit after tax of RM1 million as
compared to RM5 million in the preceding year due mainly to
losses suffered by the bakery sub-division.
Segmental assets grew by 10% from RM138 million to RM152
million principally due to increase in capital expenditure incurred
by the butchery and bakery sub-divisions.
For the year under review,
three out of four divisions
posted positive growth with
the Dairies Division leading
the way with an impressive
growth rate of 16% over the
preceding year.

review of operations
NUTRITION DIVISION
Revenue slipped by a negligible 1% from RM55.3 million in the
previous financial year to RM54.7 million in the current year due
to the competitive market conditions caused by the entrance of
US products in increasing quantities.
Coupled by the increased losses incurred by its UHT Aseptic PET
Bottling plant in Hawke’s Bay, New Zealand, the Division registered
a profit after tax of RM2 million in the current financial year as
compared to RM6 million in the previous year, a reduction of RM4
million or 72%.
Segmental assets grew by 6% from RM51 million to RM55 million
principally due to the increase in capital expenditure. Segmental
liabilities increased by 12% from RM28 million to RM32 million
mainly due to the increase in trade and other payables.
OTHERS DIVISION
Revenue for this Division was up by 8% from RM26 million in
FY2011 to RM28 million. The losses recorded in the current
financial year have deteriorated from RM2 million to RM6 million
mainly due to the continuing losses suffered by the noodles
business arising from its low volume of sales and high operating
costs. The packaging and beverage businesses posted a profit
after tax of RM5 million and RM1 million respectively.
PROSPEC T AND GROWTH PLANS
The worsening European debt crisis, the uncertain resolution of
the US “fiscal cliff” and the slowdown of China’s economy have
increased fears of another global economic recession. The recent
weather calamities in US have seen an increase in food prices,
particularly wheat, corn and soya. If the situation prolongs, higher
food prices will impact the consumption, and hence pose a
global inflation.
Much has been achieved in spite of the Group experiencing a
very challenging past year. The Group is confident that with the
various strategies that are currently being pursued to mitigate the
worsening world economic outlook, it is ready to soar to greater
heights. Looking ahead, the Group is embarking on its next
phase of growth to further synergise its existing businesses and
expand its facilities, capacity and market presence, with its soon
to be launched UHT products, sweetened condensed milk plant
in Surabaya, Indonesia and the opening of the Texas Chicken
outlets in Malaysia.Revenue by business
segments FY2012
Revenue by business
segments FY2011
100,000
100,000
0
0
200,000
200,000
300,000
300,000
400,000
400,000
500,000
500,000
600,000
600,000
700,000
700,000
900,000
900,000
800,000
800,000
Dairies
Dairies
Nutrition
Nutrition
705,680 609,123
Trading and
Frozen Food
Trading and
Frozen Food
Others
Others
196,098 188,873
54,748 55,302
28,274 26,305
Revenue by business segments
FY2012 FY2011
RM’000 RM’000
Dairies 705,680 609,123
Trading and Frozen Food 196,098 188,873
Nutrition 54,748 55,302
Others 28,274 26,305
Total 984,800 879,603
Etika Annual R eport 201221

Dairies Division
The demand for sweetened condensed milk and fresh milk
remains positive. Locally sourced sugar is effectively free of
subsidy, under the selective removal of sugar subsidies by
the Malaysian authorities’ subsidy rationalization programme
under the New Economic Model and Economic Transformation
Programme. However, selective manufacturers are now allowed
to apply to the Ministry to import sugar at the world price. Locally
sourced sugar price is expected to be maintained at the current
level. While the current crude palm oil price may have fallen to
the year low, it is possible for the price of palm oil to climb back
to reduce the current big price discount between CPO and soya
bean oil in the first quarter of 2013.
The construction of the new two storey factory – cum – warehouse
with attached multi–storey office has been completed and
awaiting the certificate of occupancy from the consultants. All
other certifications from the relevant statutory bodies have been
obtained. The installation of the UHT equipments in the factory is
near completion. The targeted trial run for the new UHT products
is by December 2012.

The sweetened condensed milk plant in Surabaya, Indonesia is
expected to commence its trial run by January 2013.
Given the encouraging current sales volume and prices for both
domestic and export markets and together with the expected
additional sales of the UHT milk and the sweetened condensed
milk from its new production line in Surabaya, Indonesia, the
Group is optimistic that a reasonable growth can be achieved.
Trading and Frozen Food Division
The demand in this Division is improving. However, the division
expects challenges in the forthcoming year as the frozen food
market remains competitive with more new players making their
entrance.
For meat items from Australia and New Zealand, the pricing
and supplies should remain stable. China beef prices continue
on the uptrend due to their strong domestic market. The
Malaysian authorities have recently sent their representatives to
US to perform certifications on some of the suppliers. Since US
beef is well demanded and accepted because it is corn-fed and
therefore giving a better quality in its tenderness and appealing
taste as compared to the grass-fed and grain-fed, the approval
by the Malaysian authorities will boost up revenue for the frozen
food division.
Slight price increases are expected in the dairy products like butter,
yoghurt, milk, cooking and whipping cream and cheese. For corn,
peas, mixed vegetables and French Fries most prices had already
gone up ranging from 5% for French Fries and by over 15% for
other vegetables due to the severe drought in US. However,
review of operations
Etika Annual R eport 201222
due to the recent downward trend of the US Dollar, the price
increase is expected not to be so severe. In order to maintain its
competitive edge, the Division will be taking measures to reduce
the expenses incurred on transportation and rental of cold rooms
and continue to source for new agency products.
With the opening of more shopping malls and restaurant chains,
the Division’s revenue will continue to grow steadily. The sub –
divisions of bakery and butchery are expected to leverage on the
Division’s experienced sales force and its branch network.
Nutrition Division
Dairy ingredients in the form of milk powders and highly
specialised whey proteins form a significant component of
the Nutrition Division’s costs. Throughout 2012 there has been
volatility in global dairy commodity prices, as well as both supply
and demand. This follows on from a period of price movement
that was placed under pressure by surplus supply worldwide.
The UHT Aseptic PET Bottling plant in Hawke’s Bay, New Zealand
started production in the 4th quarter of FY2012 after experiencing
some commissioning delays and a lengthy dairy export registration
process with the New Zealand Ministry of Primary Industries. The
plant is now fully commissioned, validated and certified for both
juice and dairy export manufacturing.
The demand from China for UHT milk and from Japan for pet milk is
going strong and expansion options are now being considered.

Others Division
On 10 July 2012, the Group’s wholly-owned subsidiary, Texas
Chicken (Malaysia) Sdn Bhd (formerly known as Elite Cafe Sdn Bhd)
signed an exclusive franchise agreement with US-based Cajun
Global LLC to develop and operate “Texas Chicken” restaurants
in Malaysia and Brunei over the next ten years. The agreement
represents the Group’s maiden entry into the fast food segment
and is a major step in expanding its downstream strategy to boost
its “Etika” brand name. The first four “Texas Chicken” outlets are
expected to open for business in the Klang Valley by the second
quarter of financial year 2013.
As for the noodles business, various measures implemented to
boost the sales volume, to improve production efficiency and to
control the high operating costs are taking effect as indicated by
the higher sales volume and improved gross profit margin, but it
is not sufficient to cover the high operating costs. Management
will continue to pursue these measures aggressively to ensure
that the high losses are contained and to enable the Company
to turnaround soon.

GEOGRAPHIC AL SEGMENTATION
The Group registered a commendable growth in revenue of 12%
or RM105 million over the preceding year, driven by strong growth
from three out of four divisions. Malaysia remains the Group’s
core market, contributing RM558 million or 57% to the revenue,
followed closely by ASEAN (RM236 million), Africa (RM106 million)
and others (RM85 million).
MALAYSIA
The Malaysian market continued to be the anchor for the growth
of the Group contributing 57% of the Group’s revenue. Revenue
grew from RM481 million in FY2011 to RM558 million in the
current year, an increase of 16%, principally due to price increase
and higher sales volume.
Dairies Division continues to be the main driving force,
contributing 64% of the total revenue, a marginal reduction of 5%
from the preceding year of 69%. Trading and Frozen Food Division
contributed 35%, moving up 12% from 23% last year whilst the
balance 1% was from Others Division.
ASEAN
The ASEAN market continues to be the second largest market for
the Group, accounting for 24% of the Group’s revenue. Revenue
grew by 47% to RM236 million as compared to RM160 million in
the preceding year. The bulk of the increase came from Indonesia
and Phillipines, a result of our expansion strategy into these vast
markets.
review of operations
Profit/(Loss) after tax by operating business segments
FY2012 FY2011
RM’000 RM’000
Dairies 36,534 24,066
Trading and Frozen Food 569 4,679
Nutrition 1,700 6,071
Others (6,164) (2,486)
Total 32,639 32,330
Profit/(Loss) after t ax
by operating business
segments FY20115,000
-10,000
-5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
DairiesNutrition
24,066
Trading and
Frozen Food
Others
4,679
6,071
(2,486)
Profit/(Loss) after t ax
by operating business
segments FY2012
-5,000
-10,000
5,000
0
10,000
15,000
20,000
25,000
30,000
35,000
40,000
DairiesNutrition
36,534
Trading and
Frozen Food
Others
5691,700
(6,164)
0
Etika Annual R eport 201223

Etika Annual R eport 201224
Revenue by geographical segments
FY2012 FY2011
RM’000 RM’000
Malaysia 558,130 481,173
ASEAN 235,753 159,684
Africa 106,432 141,872
Others 84,485 96,874
Total 984,800 879,603
Revenue by geographical
segments FY2011
100,000
0
200,000
300,000
400,000
500,000
600,000
700,000
900,000
800,000
MalaysiaASEAN
481,173
AfricaOthers
141,872
159,684
96,874
Revenue by geographical
segments FY2012
100,000
0
200,000
300,000
400,000
500,000
600,000
700,000
900,000
800,000
MalaysiaASEAN
558,130
AfricaOthers
106,432
235,753
84,485
AFRIC A
Revenue from Africa slipped by 25% from RM142 million in
FY2011 to RM106 million in FY2012, accounting for 11% of the
Group’s revenue. The slip in performance was due principally to
the competitive market conditions faced in this continent.
OTHERS
Other geographical markets refer principally to the Oceania
region, comprising Australia, New Zealand and South America.
Revenue fell by 13% from RM97 million to RM84 million.
RESOURCES REQUIREMENT
FINANCING REQUIREMENT
As at the financial year end, borrowings amounted to RM427
million comprising term loans of RM213 million and trade lines of
RM214 million as compared to term loans of RM172 million and
trade lines of RM139 million in the preceding year. The additional
borrowings were utilized to fund planned capital expenditure
for expansion of manufacturing capacity and purchase of new
machineries for the production of new products.
For the current FY2013, the Group will require additional financing
for expansion to support the growth in the Group’s business and
planned capital expenditure. Presently approximately RM67
million term loan has already been secured with various lenders.
In order to facilitate the raising of further funds for the Group
capital expenditure and working capital and to improve the
gearing ratio, Etika has entered into a subscription agreement
on 6 December 2012 with Tee Yih Jia Food Manufacturing Pte
Ltd (“TYJFM”), a leading frozen foods manufacturer in Singapore.
Pursuant to the agreement, Etika will allot and issue 75,000,000 new
ordinary shares to TYJFM at S$0.1998 each or total consideration
of S$14,985,000. The net proceeds of S$14,955,000 raised from this
arrangement will be utilised equally for capital expenditure and
working capital of the Group respectively.
COMPUTERIZATION DRIVE
The Group has completed the Microsoft Navision ERP system
implementation for the Family Group and the marketing arm of
the Susu Lembu Group.
Bar Coding and Point of Sales are new enhancements in the
Trading and Frozen Food Division and have been successfully
implemented during the year. These are add-ons over the Microsoft
Navision to further improve sales efficiency and inventory control.
The warehouse bar coding is currently on a parallel run and is
expected to be completed by the third quarter of FY2013.
HUMAN RESOURCE
The total workforce of the Group stood at 1,897 as at 30 September
2012 (2011: 1,670) an increase of 14% due to the additional staff
force required to support the growth of the Group.
review of operations

Nutrition
Division

FY2012 FY2011 FY2010 FY2009 FY2008
KEY FINANCIAL INFORMATION
Revenue (RM’000) 984,800 879,603 677,690 600,614 592,394
Profit after tax (RM’000) 20,596 28,585 65,877 61,705 40,591
Shareholders’ equity (RM’000) 227, 870 218,408 208,528 162,758 112,194
Total equity (RM’000) 230,866 222,718 213,000 167,477 113,512
Weighted average number of shares 533,941,681 533,371,528 263,843,821 252,404,214 249,377,707
Weighted average number of days (revenue) 366 339 341 365 365
KEY FINANCIAL RATIO
Earnings per share (RM sen) 4.1 5.4 25.1 24.5 16.2
Return on equity (%) 24.7 25.4 46.3 64.5 52.3
Dividend per share (RM sen) 2.0 3.9 8.3 6.9 3.9
Net asset value per share (RM sen) 43.2 41.8 79.9 65.7 45.4
Inventory turnover (days) 62 71 70 55 65
Receivables turnover (days) 53 54 53 63 70
Payables turnover (days) 33 34 32 29 27
Working capital cycle (days) 82 91 91 89 108
Net gearing ratio (times) 1.7 1.6 0.8 0.6 1.3
Revenue
(RM’000)
100,000
0
200,000
300,000
400,000
500,000
600,000
700,000
800,000
1,000,000
900,000
0809101112
Profit After Tax
(RM’000)
0
10,000
20,000
30,000
40,000
50,000
70,000
60,000
08
40,591
09
61,705
10
65,877
11
28,585
12
20,596
financial h ighlights
1112
592,394
600,614
677,690
677,690
879,603
879,603
984,800
Etika Annual R eport 201226

Earnings per share (EPS)
(RM sen)
5
0
10
15
20
25
30
08
16.2
09
24.5
10
25.1
11
5.1
12
4.1
Return on Equity
(%)
0
10
20
30
40
50
70
60
08
52.3
09
64.5
10
46.3
11
25.4
12
24.7
Working capit al cycle
(days)
10
0
20
30
40
50
60
70
110
80
90
100
08
108
09
89
10
91
11
91
12
82
Net gearing ratio
(times)
0.5
0
1.0
1.5
2.0
08
1.3
09
0.6
10
0.8
11
1.6
12
1.7
Dividend per share
(RM sen)
1.0
0
2.0
3.0
4.0
5.0
6.0
7. 0
9.0
8.0
08
3.9
09
6.9
10
8.3
11
3.9
12
Net asset value per share
(RM sen)
10
0
20
30
40
50
60
70
90
80
08
45.4
09
65.7
10
79.9
11
41.8
12
43.2
2.0
financial h ighlights
Etika Annual R eport 201227

risk Factors
The following is an overview of Etika’s risk factors, with brief
descriptions of the nature and extent of the Group’s exposure
to these risks. We strive to provide reasonable assurance to our
stakeholders by incorporating sound management control into our
daily operations, ensuring compliance with legal requirements and
safeguarding the integrity of the Group’s financial reporting as well
as related disclosures.
ECONOMIC RISKS
Changes in the economic conditions within and outside of
Malaysia where the Group’s main operations are based may have
material adverse impact on the demand for the Group’s products,
consequently affecting the operations and financial performance
of the Group. While the Group operates in a fairly defensive F&B
industry, the Group is not completely shielded from the impact of
the world economic crisis. The past 12 months have especially been
challenging for all businesses globally mainly due to the slowdown
in the economy of the United States and China as well as the
unresolved Eurozone sovereign debt crisis. Additionally, if the current
US “fiscal cliff” is not resolved and the expiring tax cuts and across-
the-board government spending cuts kick in, this may result in a
global recession. As the outlook of the global economy is still bleak,
and should it deteriorate, it may affect the demand of our products
in the countries in which it is currently being exported to.
BUSINESS RISKS
Any significant increase in the prices of our raw materials would have an
adverse impact on our profitability
The raw materials we utilize for the manufacture of our products
within our subsidiaries comprise substantially of milk powder, liquid
fresh milk, sugar, palm oil, vitamins, raw meat, flour and packaging
material (such as cans, labels, and cartons). In order to ensure that
we are able to efficiently deliver quality products to our customers at
competitive prices, we need to obtain sufficient quantities of good
quality raw materials at acceptable prices and in a timely manner. As
such, we typically enter into forward supply contracts. In the event
that our suppliers are unable to fulfill our raw material needs, we may
not be able to seek alternative sources of supply in a timely manner
or may be subject to higher costs from alternative suppliers. This may
adversely affect our ability to meet our customers’ orders and our
profitability in the event that we are unable to pass on such costs to
our customers.
Our failure to meet adequate health and hygiene standards will lead to a
loss in customer confidence
Our products are manufactured under very stringent quality control
processes and the Group stresses quality and hygiene as a top priority.
While we have not encountered any incidence of contamination or
food poisoning thus far in any of our subsidiaries, if such incidences
were to occur, the Group may face criminal prosecution under the
Food Act 1983 in Malaysia or other relevant regulations in jurisdictions
to which our products are exported to, a loss in customer confidence
and a negative impact on our reputation. Accordingly, our prospects
as well as our financial condition will be adversely affected.
It is also possible that the relevant authorities may impose directives
as a result of health and hygiene issues to carry out certain remedial
actions which may impact on our operations. Failure to comply with
such directives may result in our licenses being suspended and/or
revoked, which will have a material adverse impact on our financial
performance.
To mitigate this risk, our operations are International Organization for
Standardization (ISO) and Hazard Analysis and Critical Control Point
(HACCP) accredited by international certification bodies and we also
subscribe to Good Manufacturing P ractice (GMP).
We may be subject to product liability claims if our products are found to
be unfit for consumption
If our products are found to be unfit for consumption and consumers
suffer damage, injury or death as a result of consuming or coming
into contact with our products, we may be required to compensate
the consumer for any injury or death. The Group’s profitability
would be adversely affected if the amount payable under the
insurance policies covering the Group is not sufficient to meet
the compensation amount payable. Accordingly, our reputation,
prospects, and financial condition will also be adversely affected.
Possible changes in consumer taste may lead to lower demand and sales
of our products
Being in the F&B industry, the nature of our business is highly
dependent on consumer preferences. We strive to achieve the
highest quality in the products we offer. However, the level of market
acceptance of our products ultimately relies on consumer taste and
lifestyle. The younger affluent generation now has higher purchasing
power and is willing to pay a premium for products which cater to
their individual desires. Also, the current consumer trend towards
healthier lifestyle and organic products may pose threats to our
Group’s business if we are not flexible enough to adapt and cater
to the trend.
Etika Annual R eport 201228

An outbreak of disease in livestock, such as cows and goats, and food
scares may lead to loss of consumer confidence in our products
Any outbreak of disease in livestock and food scares may have an
adverse impact on the business of our Group as it may lead to loss
in consumer confidence and reduction in consumption of the
particular food or related products concerned. It may also affect our
Group’s sources of supply of raw materials, such as milk powder or
raw meat, from that particular area, resulting in our Group having
to source for alternative supplies which may be more costly or have
negative impact on our production processes and output.
We depend on key management personnel and the loss of such personnel
may adversely affect our Group’s operations
The Group’s success to date has been due largely to the contributions
of its management teams and employees. As such, the Group’s
continued success is dependent on its ability to retain the services
of such personnel. There is no certainty that the Group will be able to
retain or integrate new personnel into the Group or identify or employ
qualified personnel. Accordingly, the loss of the services of these key
personnel or the inability to attract additional qualified persons may
negatively affect the Group’s business, financial condition, results of
operations and future development.
REGIONAL EXPANSION RISKS
The Group now has its operation base in Malaysia, Vietnam, Indonesia
and New Zealand. However, we are still constantly seeking new
business opportunities overseas. Thus, the Group will focus equally
on international expansion for future growth. However, there are
considerable risks associated with this regional expansion strategy.
Ability to extract synergies and integrate new investment
In acquisition, the Group faces challenges arising from being able
to integrate newly acquired businesses with our own existing
operations, managing businesses in new markets where we have
limited experience. There is no assurance that synergies can be
created from the new acquisitions and that the returns generated
from the new ventures will meet the management’s expectations.
Ability to make further acquisitions
Although we are constantly looking for new opportunities that could
contribute to our future growth, there is no assurance that there will
be sound acquisition opportunities available as there are constraint
factors such as competition from other investors, government
policies, political considerations, and last but not least, sincere sellers
with sound business deals.
FINANCIAL RISKS
Credit risks
Credit risk is the potential financial loss resulting from the failure of
a customer or counterparty to settle its financial and contractual
obligations to the Group as and when they fall due. While the Group
faces the normal business risk associated with ageing collections, it has
adopted a prudent accounting policy of making specific provisions
once trade debts are deemed not collectible. Nonetheless, a delay
or default in payment and/or significant increase in the incidence of
bad trade receivables would have a material and adverse impact on
our financial position and performance.
Foreign currency risks
The Group incurs foreign currency risk on transactions and balances
that are denominated in currencies other than the entity’s functional
currency. The currencies giving rise to this risk are primarily Singapore
Dollar, British Pound, United States Dollar, Euro, New Zealand Dollar,
Australian Dollar, Indonesian Rupiah and Vietnamese Dong. Exposure
to foreign currency risk is monitored on an on-going basis to ensure
that the net exposure is at an acceptable level and hedging through
currency forward exchange contracts is done where appropriate.
Interest rate risks
The Group’s exposure to changes in interest rates relates primarily
to fixed deposits, bank borrowings and finance lease obligations
with financial institutions. The Group strives to maintain an efficient
and optimal interest cost structure using a combination of fixed
and variable rate debts, and long and short term borrowings. The
objective for the mix between fixed and floating rate borrowings
are set to reduce the impact of an upward change in interest rates
while enabling benefits to be enjoyed if the interest rates fall. In the
event of any substantial increase in interest rates, cash borrowings
obligations may be extended and our financial performance may be
affected.
Liquidity risks
The Group actively manages its operating cash flows and the
availability of funding so as to ensure that all repayment and funding
needs are met. A s part of our overall prudent liquidity management,
the Group maintains sufficient level of cash and cash equivalents
to meet its working capital requirements. Short-term funding is
obtained from overdraft facilities from banks and finance leases
from financial institutions. As such, we are subject to risks normally
associated with debt financing, including the risk that our cash
flows will be insufficient to meet required payment of principals
and interest. In addition, while in the past our cash flows from our
operations and financing activities had been sufficient to meet our
payments obligations for borrowings and interest, there is however
no assurance that we are able to do so in the future. In such event,
we may be required to raise additional capital, debt or other forms
of financing for our working capital. If any of the aforesaid events
occur and we are unable for any reason to raise additional funds
to meet our working capital requirements, our business, financial
performance and position will be adversely affected.
risk F actors
Etika Annual R eport 201229

ETIKA INTERNATIONAL
HOLDINGS LIMITED
Dairies
Trading
& Frozen
Food
NUTRITION
Others
• Etika Dairies Sdn Bhd 100%
• Etika Global Resources Sdn Bhd 100%
• Etika Foods Marketing Sdn Bhd 100%
• PT Vixon Indonesia 100%*
• Tan Viet Xuan Joint Stock Company 100%*
• Etika Vixumilk Pte Ltd 100%
• PT Etika Marketing 100%*
• Golden Difference Sdn Bhd 100%
• Susu Lembu Asli (Johore) Sdn Bhd 100%*
• Susu Lembu Asli Marketing Sdn Bhd 100%*
• Etika Foods (Singapore) Pte Ltd 100%
• Etika Foods (Vietnam) Co Ltd 100%*
• Etika (NZ) Limited 100%
• Naturalac Nutrition Limited 100%*
• Naturalac Nutrition (UK) Limited 100%*
• Etika Dairies NZ Limited 60.7%*
• Etika Foods (M) Sdn Bhd 100%
• Pok Brothers Sdn Bhd 100%*
• Pok Brothers (Selangor) Sdn Bhd 100%*
• Pok Brothers (Penang) Sdn Bhd 100%*
• Pok Brothers (Pahang) Sdn Bhd 100%*
• Pok Brothers (Johor) Sdn Bhd 81.5%*
• Etika Consumer Sdn Bhd 100%*
• De-luxe Food Services Sdn Bhd 100%*
• Family Bakery Sdn Bhd 100%*
• Daily Fresh Bakery Sdn Bhd 100%*
• Hot Bun Food Industries Sdn Bhd 100%*
Packaging
• Etika Industries Holdings Sdn Bhd 100%
• General Packaging Sdn Bhd 99.04%*
Beverage
• Etika Beverages Sdn Bhd 100%
Noodles
• PT Sentrafood Indonusa 100%*
Restaurant
• Platinum Appreciation Sdn Bhd 100%
• Texas Chicken (Malaysia) Sdn Bhd 100%*
(formerly known as E lite Cafe S dn Bhd)
Unallocated Units
• Etika Capital (Labuan) Inc 100%
• Eureka Capital Sdn Bhd 100%
• Etika Foods International Inc 100%
• Etika Brands Pte Ltd 100%
• Etika IT Services Sdn Bhd 100%
• PT Etika Indonesia 100%*
• PT Sentraboga Intiselera 100%*
* Effective shareholding held directly and indirectly
Note: Group structure updated as at date of Financial Statements.
Etika Annual R eport 201230
group structure

Principal Bankers
Maybank I slamic Berhad
Hong Leong I slamic Bank Berhad
AmIslamic Bank Berhad
DEG – Deutsche I nvestitions – und
Entwicklungsgesellschaft mbH
Kuwait Finance House (Malaysia) Berhad
Bank P ertanian Malaysia Berhad
PT Bank Maybank S yariah I ndonesia
National A ustralia Bank Limited
Asian Finance Bank Berhad
Alliance I slamic Bank Berhad
Solicitors
Stamford Law Corporation
Hutabarat Halim & R ekan
Luat Viet-Advocates & S olicitors
Company Secretaries
S Surenthiraraj @ S Suressh
Kok Mor Keat, ACIS
Registered Office
SGX Centre II, #17-01
4 Shenton Way
Singapore 068807
Telephone : (65) 6361 9883
Facsimile : (65) 6538 0877
Share Registrar
Boardroom Corporate &
Advisory Services Pte Ltd
50 Raffles P lace
Singapore Land T ower, #32-01
Singapore 048623
Independent Auditors
BDO LLP
Certified P ublic A ccountants
21 Merchant R oad
#05-01 R oyal Merukh S .E.A. Building
Singapore 058267
Partner-in-charge: N g Kian Hui
(Appointed since the financial year ended
30 September 2012)
Board of
Directors
Dato’ Jaya J B Tan
(Non-Executive Chairman)
Dato’ Kamal Y P Tan
(Group Chief Executive Officer)
Mah Weng Choong
(Group Chief Operating Officer)
John Lyn Hian Woon
(Independent Director)
Teo Chee Seng
(Independent Director)
Tan Yet Meng
(Non-Executive Director)
Khor Sin Kok
(Deputy Group Chief Operating Officer and
Alternate Director to Mah Weng Choong)
Tan San Chuan
(Alternate Director to Tan Yet Meng)
Etika Annual R eport 201231
corporate information

board of d irectors
Dato’ Jaya J B Tan
Khor Sin Kok
John Lyn Hian Woon
Mah Weng Choong

Tan Yet Meng
Teo Chee Seng
Tan San Chuan
Dato’ Kamal Y P Tan

Etika Annual R eport 201234
Dato’ Kamal Y P Tan
Group Chief Executive Officer
Dato’ Jaya J B Tan
Non-Executive Chairman
Member of Audit Committee
Member of Remuneration Committee
Member of Nominating Committee
Dato’ Jaya J B Tan is the Non-Executive Chairman of the Company
and was appointed to the Board since 23 December 2003. He
graduated from the University of Arizona and is a Mechanical
Engineer by training. He has extensive experience in forestry, property
development, food retail operations, trading and financial services.
Previously, he has served as Chairman of several companies quoted
on the stock exchanges of Malaysia, United Kingdom, Singapore,
Australia and I ndia.
Currently, Dato’ Jaya is the Executive Chairman of Lasseters
International Holdings Limited, a company listed on the Singapore
Stock Exchange (“SGX”) and Chairman of Lasseters Corporation
Limited, a company listed on the Australian Stock Exchange (“ASX”).
He is also the Chairman of Cypress Lakes Group Limited, a public
company in Australia and the Vice Chairman of Park Hyatt Saigon, a
259-room 5-star hotel in Ho Chi Minh City, Vietnam.
Dato’ Jaya was last re-elected as Director at the Annual General
Meeting (“AGM”) held in January 2012.
Dato’ Jaya is the brother of Dato’ Kamal Y P Tan, brother-in-law of
Ms Tan Yet Meng and uncle of Mr Tan San Chuan.
Dato’ Kamal Y P Tan is the Group Chief Executive Officer of the
Company and was appointed to the Board on 23 December 2003.
He was appointed as the Executive Director of the Company upon
its listing on 23 December 2004 and has been re-designated to the
current position since 20 January 2009.
Dato’ Kamal is an Economics graduate from the London School of
Economics and has held board positions with companies listed
on the stock exchanges in Malaysia, Singapore, Australia, United
Kingdom and I ndia.
Currently, Dato’ Kamal is also the Executive Director of another
company listed on the Singapore Stock Exchange, namely Lasseters
International Holdings Limited and a Non-Executive Director of
a company listed on the Australian Stock Exchange, Lasseters
Corporation Limited. He is also a Director of Cypress Lakes Group
Limited, a public company in Australia and is a Board member of Park
Hyatt Saigon, a 259-room 5-star hotel in Ho Chi Minh City, Vietnam.
Dato’ Kamal was re-elected as Director at the AGM held in January
2011. He will retire at the forthcoming AGM and will offer himself
for re-election.
Dato’ Kamal is the brother of Dato’ Jaya J B Tan, brother-in-law of
Ms Tan Yet Meng and uncle of Mr Tan San Chuan.
board of d irectors

Etika Annual R eport 201235
Teo Chee Seng
Independent Director
Chairman of Remuneration Committee
Chairman of Nominating Committee
Member of Audit Committee
John Lyn Hian Woon
Independent Director
Chairman of Audit Committee
Member of Remuneration Committee
Member of Nominating Committee
Mr Teo Chee Seng was appointed Independent Director of the
Company on 3 August 2004. He holds a Bachelor of Law (Hons) degree
from the University of Singapore and is a lawyer in the Singapore
private practice for more than 30 years. He is also a Notary P ublic.
Mr Teo acts as the legal consultant to Tzu Chi Foundation, Taiwan’s
biggest charity organisation which is also an United Nations NGO.
Apart from the present directorship of the Company, Mr Teo is also an
Independent Director of another company listed on the Singapore
Stock Exchange, namely Lasseters International Holdings Limited and
United Overseas Australia Ltd, which is listed on both Singapore and
Australia stock exchanges.
Mr Teo was re-elected as Director of the Company at the AGM held
in January 2010. He will retire at the forthcoming AGM and will offer
himself for re-election.
Mr John Lyn Hian Woon was appointed Independent Director on
3 August 2004. He holds a BS c degree in Mechanical Engineering
from the University of Leeds, UK and an MBA from Washington State
University.
Mr Lyn is presently the Chief Executive Officer of Colonial Investment
Pte. Ltd., where he is responsible for management, strategic planning,
investment and corporate restructuring. Prior to that, he was an
investment banker with various financial institutions such as Chase
Manhattan Bank, Citibank, Schroders Securities and HSBC James
Capel with a total of 15 years of experience.
Mr Lyn is currently the Executive Director of Pine Forest Capital, a
Boutique Fund Management Company, registered in Singapore. Mr
Lyn is also the Chairman of Vietnam A sset Management, an associate
company of UOB Kay Hian, which manages Public-listed Funds for
Vietnam.
Apart from the directorship of the Company, Mr Lyn does not hold
directorship in any other listed companies.
Mr Lyn was re-elected as Director of the Company at the AGM held
in January 2011.
board of d irectors

Etika Annual R eport 201236
Tan Yet Meng
Non-Executive Director
Mah Weng Choong
Group Chief Operating Officer
Mr Mah Weng Choong was appointed to the Board on 3 August 2004
as a Non-Executive Director and was re-designated to the position
of Group Chief Operating Officer on 13 May 2010. He is a graduate
in Science from the University of Malaya. Having spent 34 years
in the Malaysian dairy division of a group listed on the SGX-ST, he
has gained extensive experience in the manufacture of sweetened
condensed milk and evaporated milk. He has worked in milk plants
in Malaysia and Singapore that produces sweetened condensed milk,
evaporated milk, ice-cream, UHT beverages, milk powder packing
and other dairy-related products.
He was appointed Managing Director of Etika Dairies Sdn Bhd, a
wholly-owned subsidiary of the Company in 1996 and has successfully
set up our current factory located in Meru, Klang, in Malaysia and was
actively involved in the supervision of the upgrading and expansion
of the plant in the recent years. His primary responsibilities include
the formulation and implementation of the business strategies and
policies of the Dairies and Packaging Divisions as well as charting
their business growth.
Apart from the directorship of the Company, Mr Mah does not hold
directorship in any other listed companies.
Mr Mah is due for re-appointment as a Director pursuant to section
153(6) of the Companies A ct, Chapter 50, at the forthcoming A GM.
Ms Tan Yet Meng was appointed as Non-Executive Director of the
Company on 15 September 2005. She holds a Secretarial Diploma
and has previous working experience in advertising, bakery and
confectionery as well as retail and trading in frozen food and fresh
juices.
Apart from the directorship of the Company, Ms Tan does not hold
directorship in any other listed companies. She sits on the board of
a few private companies which are involved in investment holding,
property development and leisure business.
Ms Tan was re-elected as a Director at the A GM held in January 2012.
Ms Tan is the mother of Mr Tan San Chuan and sister-in-law of
Dato’ Jaya J B Tan and Dato’ Kamal Y P Tan.
board of d irectors

Etika Annual R eport 201237
Khor Sin Kok
Deputy Group Chief Operating Officer and
Alternate Director to Mah Weng Choong
Tan San Chuan
Alternate Director to Tan Yet Meng
Mr Khor Sin Kok was appointed as Alternate Director to Mr Mah
Weng Choong on 3 August 2004 and was re-designated as Deputy
Group Chief Operating Officer on 13 May 2010. He holds a degree
in Mechanical Engineering from the University of Leeds, UK and
a Master degree in Business Administration majoring in Finance
from Michigan State University, USA. He has worked in a Malaysian
dairy division of a group listed on the SGX-ST in 1985 as Assistant
Project Development Manager. During his 12 years tenure with
the company, he was involved in market research activities, project
feasibility studies and implementation and manufacturing operations
of various product lines like sweetened condensed milk, evaporated
milk, milk powder packing, ice-cream, UHT beverages, sterilized and
pasteurized products in plastic bottle and gable-top paper carton
and can making plant. He joined Etika Dairies Sdn Bhd in 1996 as its
Executive Director.
He oversees the day-to-day management and operations of Dairies
and Packaging Divisions as well as the strategic planning and business
development aspects of the companies.
Apart from the directorship of the Company, Mr Khor does not hold
directorship in any other listed companies.
Mr Tan San Chuan was appointed as Alternate Director to Ms Tan Yet
Meng on 15 September 2005. Mr Tan is an Accounting and Finance
graduate from the London School of Economics. Prior to joining the
Group, he was employed by KP MG and has gained experience in
auditing. Mr Tan has also worked in a merchant bank in Malaysia in
which he gained some experience in corporate finance through his
involvement in mergers and acquisitions and corporate restructuring
exercises.
Apart from the present directorship of the Company, Mr Tan is also
the Executive Director of another company listed on the Singapore
Stock Exchange, namely Lasseters International Holdings Limited
and the Non-Executive Director of Lasseters Corporation Limited, a
company listed on the Australian Stock Exchange. He is also a Director
of Cypress Group Lakes Limited, a public company in Australia and a
Board member of Park Hyatt Saigon, a 259-room 5-star hotel in Ho Chi
Minh City, Vietnam.
Mr Tan is the son of Ms Tan Yet Meng and nephew of Dato’ Jaya J B Tan
and Dato’ Kamal Y P Tan.
board of d irectors

key management
Etika Annual R eport 201238
Billy Lim Yew Thoon
Chief Financial Officer
Mr Billy Lim joined Etika as Chief Financial Officer on 1 March 2011.
He is a Fellow member of the Association of Chartered Certified
Accountants, a member of the Malaysia Institute of Accountants,
a member of the Malaysian Institute of Corporate Governance, an
Associate member of the Chartered Tax Institute of Malaysia and an
Associate member of I nstitute of I nternal A uditors.
Mr Lim brings with him a wealth of experience of more than 18 years
in the audit practice and another 8 years in the commercial industry.
He has also worked as the General Manager of Internal Audit for more
than 3 years in a large public corporation listed on Bursa Malaysia
Securities Berhad. His commercial experience includes monitoring
of manufacturing and gaming operations located in Malaysia and
overseas as well as participation in the negotiation and takeover of
companies.
Prior to joining Etika, Mr Lim was a Director of a consulting firm which
has been providing consultancy and internal audit services to a
Malaysian listed company. He was also a sole proprietor of a firm of
practicing accountants.
Ronnie Kwong Yuen Seng
Chief Operating Officer – Sales & Marketing, Dairies & Beverage
Division
Mr Ronnie Kwong Yuen Seng has overall responsibility for the sales
and marketing activities of the Dairies and Beverage Divisions. Prior
to joining Etika Dairies Sdn Bhd (“EDSB”), he had more than 34 years
experience in the Malaysian dairy division of a group listed on the SGX-
ST. He began his career at the age of 23 and as a sales representative
in a dairy company based in Malacca. During this time, he was part of
a team of pioneers who advanced the sale of sweetened condensed
milk in Malaysia and had over the years, gained considerable
experience in the domestic milk product industry, having worked in
both East and West Malaysia. He was appointed as Executive Director,
Sales and Marketing of EDSB in 1999. He is primarily responsible for
developing marketing strategies and expanding our market share in
Malaysia and overseas for the Dairies & Beverage Division.
Lawrence Pok York Keaw
Chief Executive Officer – Frozen Food Division
Mr Pok York Keaw has extensive experience in the hotel and
restaurant industry. He is the Managing Director of Pok Brothers Sdn
Bhd and had been with the company since the mid 1960’s. He was
instrumental in building up the company from a mini-market trader
to an importer of quality foods and distributor of a classic range of
international branded products. Due to his accumulated extensive
knowledge on the food industry a subsidiary, De-luxe Food Services
Sdn Bhd was established in 1969 to manufacture “Gourmessa Brand
value added Halal food products” (portion control meat, delicatessen
meat, smoked salmon, bread and pastry products) to further enhance
our business and service our customers.
Richard Rowntree
Managing Director, Naturalac Nutrition Ltd
Mr Richard Rowntree has overall responsibility for the nutritional
products business. Based in New Zealand, a significant proportion
of current divisional sales and future prospects for growth are in
overseas markets. Mr Rowntree also represents the group’s interests in
relation to ensuring the success of Etika Dairies NZ Limited the aseptic
UHT beverage manufacturing business based in New Zealand. The
potential for growth of these businesses will draw on Mr Rowntree’s
extensive experience in international business development. Prior
to his appointment to his current role with Naturalac Nutrition Ltd
in March 2003, he had been employed in international business
development senior management roles with a number of public-
listed New Zealand based companies including Cerebos, Fletcher
Challenge and (Heinz) Watties. Mr Rowntree has had previous
experience in leading export business development into markets
including United Kingdom, Australia, the Pacific Islands and a number
of South East A sian countries.
Neil McGar va
Chief Executive Officer, Etika Dairies NZ Ltd
Mr Neil McGarva studied food science at Massey University and went
on to graduate in Public Health Inspection at Wellington Polytechnic.
He worked for 10 years as a NZ Government food safety auditor.
In 1992, he established Pandoro Bakeries, a bread manufacturing
factory in Auckland, expanding nationally over 10 years to employ
over 150 people across multiple sites. After selling Pandoro in 2002,
he established the “Natural Pet Treat Company” which continues
today as a contract manufacturer and exporter of quality pet foods.
Since 2006 he has worked on establishing New Zealand’s first UHT
Aseptic PET Bottling plant in Hawkes Bay. In March 2009 he merged
this operation with Etika International Holdings Limited to form Etika
Dairies NZ Ltd.
He is currently managing the Etika Dairies NZ plant in Hawkes
Bay which commenced commercial production in 2012 contract
manufacturing UHT shelf stable dairy and juice products in PET
bottles for domestic and export markets.

OTHERS
Packaging
Beverage
& Noodles
Division

corporate governance
Etika International Holdings Limited (“Etika”) is committed to maintaining a high standard
of corporate governance by complying with the benchmark set by the Code of Corporate
Governance 2005 (the “Code”). Good corporate governance establishes and maintains an
ethical environment, which strives to enhance the interest of all shareholders.

Etika believes it has put in place effective self-regulatory corporate practices to protect its
shareholders’ interests and enhance long-term shareholders’ value. This report outlines Etika’s
corporate governance framework in place throughout FY2012.
1. BOARD MATTERS
The Board’s C onduct of Affairs
Principle 1 : Effective Board to lead and control the Company

The Board of Directors (the “Board”) comprises two Executive Directors, two non-executive Directors and two independent directors, having
the appropriate mix of core competencies and diversity in experience, which in the course of deliberations, they are obliged to act in good
faith and consider all times the interest of the Company.
The primary functions of the Board are to provide stewardship for Etika and its subsidiaries (the “Group”) and to enhance and protect long-
term returns and value for its shareholders. Besides carrying out its statutory responsibilities, the Board oversees the formulation of the Group’s
long-term strategic objectives and directions, reviews and approves the Group’s annual budgets, business and strategic plans and monitors
the achievements of the Group’s corporate objectives. It also oversees the management of the Group’s business affairs and conduct periodic
reviews of the Group’s financial performance and implementing policies relating to financial matters, which include risk management and
internal control and compliance.
The Board’s approval is also required in matters such as major funding proposals, investment and divestment proposals, major acquisitions
and disposals, corporate or financial restructuring, mergers and acquisitions, share issuance and dividends and major corporate policies on
key areas of operations, the release of the Group’s quarterly and full year results and interested person transactions of a material nature. The
Board ensures that incoming new Directors are familiarized with the Group’s businesses and corporate governance practices upon their
appointment to facilitate the effective discharge of their duties.
The Board meets regularly to oversee the business affairs of the Group, and to approve, if applicable, any financial and business objectives and
strategies. Ad-hoc meetings will be held when circumstances require. Etika’s Articles of Association also provide for telephone conference
and video conferencing meetings.
To facilitate effective execution of its function, the Board has delegated specific responsibilities to three committees. They are namely the
Audit Committee, the Nominating Committee and the Remuneration Committee. Each of the committees has its own terms of reference
setting out its role and has the authority to examine particular issues and report to the Board with their recommendations. The ultimate
responsibility for the final decision on all matters, however, lies with the Board.
Updates on corporate governance are circulated to all Board members by the Company Secretary on a regular basis. Directors are also
provided with regular updates, particularly on relevant new laws, regulations, changing commercial risks and information of the industry. The
Directors also have access to the advice and services of the Company Secretary and Management, and may in appropriate circumstances,
seek independent professional advice concerning the Group’s affairs. Relevant courses conducted by various institutions will be attended by
Directors when possible.
Etika Annual R eport 201240

corporate governance
The attendance of the directors at meetings of the Board and Board committees is as follows :-
Audit Remuneration Nominating
Board C ommittee C ommittee C ommittee
No. of meetings held in FY2012 5 5 2 1

Name of Directors
Dato’ Jaya J B Tan 5 5 2 1
Dato’ Kamal Y P Tan 5 n/a n/a n/a
Tan Yet Meng (Alternate Director : Tan San Chuan) 2 n/a n/a n/a
Mah Weng Choong (Alternate Director : Khor Sin Kok) 5 n/a n/a n/a
Teo Chee S eng 5 5 2 1
John Lyn Hian Woon 5 5 2 1
Note : n/a – not applicable as Director is not a member of the Committee.
Board Composition and Guidance
Principle 2 : Strong and independent element on the Board
As at the date of the Directors’ R eport, the Board of Directors (“the Board”) of Etika comprised the following directors :-
D ate of last
D ate of first re-election/
Name Age appointment re-appointment Designation
Dato’ Jaya J B Tan 65 23.12.2003 18.01.2012 Chairman
Dato’ Kamal Y P Tan 60 23.12.2003 21.01.2011 Group Chief Executive Officer
Mah Weng Choong 74 03.08.2004 18.01.2012 Group Chief Operating Officer
Tan Yet Meng 56 15.09.2005 18.01.2012 Non-Executive Director
Teo Chee S eng 58 03.08.2004 22.01.2010 I ndependent Director
John Lyn Hian Woon 54 03.08.2004 21.01.2011 I ndependent Director
Khor Sin Kok 56 03.08.2004 - Deputy Group Chief Operating
Officer and Alternate to
Mah Weng Choong
Tan San Chuan 31 15.09.2005 - Alternate to Tan Yet Meng
There is a good balance between the executive and non-executive directors and a strong and independent element on the Board. Key
information on directors can be found in the “Board of Directors” section of the annual report.
The Board, through the delegation of its authority to the Nominating Committee (“NC”), has used its best efforts to ensure that Directors
appointed to the Board possess the relevant background, experience and knowledge in technology, business, finance and management
skills critical to the Group’s business to enable the Board to make sound and well-considered decisions.
The independence of each director is reviewed annually by the NC. The Board considers an “independent” director as one who has no
relationship with Etika, its related companies or its officers that could interfere, or be reasonably perceived to interfere, with the exercise of
the director’s independent business judgment of the conduct of the Group’s affairs.
The composition of the Board is reviewed on an annual basis by NC to ensure that the Board has the appropriate mix of expertise and
experience, and collectively possesses the necessary core competence for informed decision-making and effective functioning.
Etika Annual R eport 201241

Chairman and Chief Executive Officer
Principle 3 : Clear division of responsibilities at the top of the Company

The Chairman’s primary function is to manage the business of the Board and the Board committees, and to promote harmonious relations
with the shareholders. I n respect of the Chairman’s role with regard to Board proceedings, the Chairman being a non-executive Director :
• Schedules meetings that enable the Board to perform its duties responsibly while not interfering with the flow of Etika’s operations;
• Prepares meeting agenda;
• Exercises control over quality, quantity and timeliness of the flow of information between management and the Board; and
• Assists in ensuring compliance with Etika’s guidelines on corporate governance.
There is a clear division of responsibilities at the top management with clearly defined lines of responsibility between the Board and executive
functions of the management of Etika’s business. The Board sets broad business guidelines, approves financial objectives and business
strategies and monitors the standards of executive management performance on a periodic basis.
The role of the Chairman and Chief Executive Officer are separate. Dato’ Jaya J B Tan, the non-executive Chairman, is consulted on the Group’s
strategic direction and formulation of policies. The day-to-day operation of the Group is entrusted to the Group Chief Executive Officer,
Dato’ Kamal Y P Tan, who is assisted by an experienced and qualified team of executive officers of the Group. Dato’ Jaya and Dato’ Kamal are
brothers.
2. BOARD MEMBERSHIP AND PERFORMANCE
Board C ommittees
To assist the Board in the discharge of its responsibilities, the Board has established three Board Committees, namely the Audit Committee
(“AC”), Nominating Committee (“NC”) and Remuneration Committee (“R C”). These committees function within clearly defined terms of
reference and operating procedures, which are reviewed on a regular basis.
The composition of each of the committees is as follows:-
Audit Remuneration Nominating
Directors Committee Committee Committee
Teo Chee S eng Member Chairman Chairman
John Lyn Hian Woon Chairman Member Member
Dato’ Jaya J B Tan Member Member Member
Nominating C ommittee
Principle 4 : Formal and transparent process for appointment of new directors
Principle 5 : Formal assessment of the effectiveness of the Board and contributions of each director
The Nominating Committee (“NC”) comprises one non-executive director and two independent non-executive directors, one of whom is
also the Chairman of the Committee, namely :-
Teo Chee S eng (Chairman) N on-Executive, I ndependent
John Lyn Hian Woon (Member) N on-Executive, I ndependent
Dato’ Jaya J B Tan (Member) N on-Executive

The NC decides how the Board should be evaluated and selects a set of performance criteria that is linked to long-term shareholders’ value,
to be used for performance evaluation of the Board. The performance criteria for the Board evaluation includes an evaluation of the size and
composition of the Board, the Board’s access to information, accountability, Board processes, Board performance in relation to discharging
its principal responsibilities, communication with Management and standards of conduct of the Directors. The criteria for each Director’s
evaluation include his commitment of time for board and committee meetings and other duties, his other contribution to the Group and
his standards of conduct.
Etika Annual R eport 201242
corporate governance

The NC performs the following principal functions :-
• Reviews the structure, size and composition of the Board and make recommendations to the Board;
• Identifies candidates and reviews all nomination for the appointment and re-appointment of members of the Board;
• Make plans for succession, in particular for the Chairman and Chief Executive;
• Determines annually whether or not a Director is independent in accordance with the guidelines of the Code;
• Decides whether or not a Director is able to and has been adequately carrying out his/her duties as a Director of the Company; and
• Assesses the effectiveness of the Board as a whole, as well as the contribution by each member of the Board.
The Board has power from time to time and at any time to appoint a person as a Director to fill a casual vacancy or as an addition to the Board.
Any new Directors appointed during the year shall only hold office until the next Annual General Meeting (“AGM”) and submit themselves for
re-election and shall not be taken into account in determining the Directors who are to retire by rotation at that meeting.
Article 87 of Etika’s Articles of Association requires the Managing Director, Chief Executive Officer or President (or person holding an equivalent
position) who is a Director to be subject to retirement by rotation.
Article 91 of Etika’s Articles of Association requires one third of the Board to retire by rotation at every AGM. The Directors must present
themselves for re-nomination and re-election at regular intervals of at least once every three years.
In reviewing the nomination of the retiring directors, the NC considered the performance and contribution of each of the retiring directors,
having regard not only to their attendance and participation at Board and Board Committee meetings but also the time and efforts devoted
to the Group’s business and affairs, especially the operational and technical contributions.
In considering the appointment of any new director, the NC ensures that the new director possesses the necessary skills, knowledge and
experience that could facilitate the Board in the making of sound and well-considered decisions. The Board is of the view that the process
for appointment of new Director(s) is adequate. For re-appointments, NC takes into account the individual director’s past contributions and
performance.
The NC has reviewed the independence of each director for FY2012 in accordance with the Code’s definition of independence and is of the
opinion that Mr. Teo Chee S eng and Mr John Lyn Hian Woon are independent.
Although the independent Directors hold directorships in other companies, the Board is of the view that such multiple Board representations
do not hinder them from carrying out their duties as Directors. These Directors would widen the experience of the Board and give it a broader
perspective.
The NC has recommended Dato’ Kamal Y P Tan and Mr Teo Chee Seng, who are retiring at this forthcoming Annual General Meeting, for re-
election as Directors of the Company.
Access to information
Principle 6 : Board members to have complete, adequate and timely information
To assist the Board in its discharge of duties and responsibilities, all directors are provided with adequate information in a timely manner
by the management on matters to be deliberated, thus facilitating informed decision-making. Directors are also updated on initiatives and
developments for the Group’s business whenever possible on an on-going basis.
The Board has separate and independent access to Etika’s senior management and the Company Secretaries. At least one of the Company
Secretaries attends the Board and Board committee meetings and is responsible for ensuring that board procedures are followed in
accordance with the Memorandum and Articles of Association of Etika, and that applicable rules and regulations (in particular the SGX
Listing Manual) are complied with.
Management will, upon direction by the Board, assist the Directors, either individually or as a group, to get independent professional advice
in furtherance of their duties, at Etika’s expense.
Etika Annual R eport 201243
corporate governance

Remuneration Matters
Principle 7 : Formal and transparent procedure for fixing remuneration packages of directors
Principle 8 : Remuneration of directors should be adequate but not excessive
Principle 9 : Remuneration policy, level and mix of remuneration and procedure for setting remuneration
The Remuneration Committee (“R C”) comprises one non-executive director and two independent non-executive directors, one of whom is
also the Chairman of the Committee, namely :-
Teo Chee S eng (Chairman) N on-Executive, I ndependent
John Lyn Hian Woon (Member) N on-Executive, I ndependent
Dato’ Jaya J B Tan (Member) N on-Executive
The RC has adopted its terms of reference that describes the responsibilities of its members.
The role of the RC is to review and recommend remuneration policies and packages for directors and key executives and to disseminate
proper information on transparency and accountability to shareholders on issues of remuneration of the executive directors of the Group
and employees related to the executive directors and controlling shareholders of the Group.
RC’s review covers all aspect of remuneration, including but not limited to directors’ fees, salaries, allowances, bonuses, options, long-term
incentive schemes, including share schemes and benefits in kind. Recommendations are made in consultation with the Chairman of the
Board and submitted for endorsement by the entire Board. No director is involved in deciding his own remuneration.
Primary functions to be performed by R C :-
• Reviews and recommends to the Board, a framework of remuneration for the Board and key executives;
• Reviews the level of remuneration that are appropriate to attract, retain and motivate the directors and key executives;
• Ensures adequate disclosure on Directors’ remuneration;
• Reviews and administers the Etika Employee Share Option Scheme (the “S cheme”) adopted by the Group and decides on the allocations
and grants of options to eligible participants under the S cheme; and
• Recommends to the Board, the Executive Share Option S chemes or any long-term incentive schemes which may be set up from time to
time and does all acts necessary in connection therewith.
Directors’ Remuneration
a) Number of directors in remuneration bands :-
Remuneration Bands FY2011 FY2012
Below S$250,000 4 4
S$250,000 to S$499,999 1 2
S$500,000 to S$749,999 2 1
7 7
Etika Annual R eport 201244
corporate governance

b) A breakdown, showing the level and mix of each individual director’s remuneration and fees of Etika for FY2012 is as follows:
Performance-
D irectors’ related income/ Total
Salary* Fees Bonus** Remuneration
Remuneration Bands & Name of D irectors % % % %
S$500,000 to S$749,999
Mah Weng Choong 56.1 - 43.9 100.0
S$250,000 to S$499,999
Dato’ Kamal Y P Tan 52.7 - 47.3 100.0
Khor Sin Kok 57.1 - 42.9 100.0
Below S$250,000
Dato’ Jaya J B Tan - 100.0 - 100.0
Teo Chee S eng - 100.0 - 100.0
John Lyn Hian Woon - 100.0 - 100.0
Tan Yet Meng - 100.0 - 100.0
Tan San Chuan - - - -
* Inclusive of benefits–in-kind, allowances and provident fund.
** Bonus - on receipt basis during FY2012.
The breakdown, showing the level and mix of each key executive’s remuneration for FY2012, is as follows:-
Performance-
D irectors’ related income/ Total
Remuneration Bands & Salary* Fees Bonus** Remuneration
Name of Executive Officers % % % %
S$250,000 to S$499,999
Kwong Yuen S eng 56.2 - 43.8 100.0
Pok York Keaw 65.3 - 34.7 100.0
Richard R owntree 81.1 - 18.9 100.0
Below S$250,000
Billy Lim Yew Thoon 84.9 - 15.1 100.0
Pok York Keng 70.5 29.5 100.0
* Inclusive of benefits-in-kind, allowances, ex-gratia and provident fund.
** Bonus - on receipt basis during FY2012.
Immediate family members of D irectors
There are no immediate family members of Directors in employment with Etika and whose remuneration exceeds S$150,000 during the
FY2012 save and except for Dato’ Kamal Y P Tan who is related to Dato’ Jaya J B Tan, Ms Tan Yet Meng and Mr Tan San Chuan.
Etika Employee Share Option Scheme (ESOS)
The ESOS was approved and adopted by its members at an Extraordinary General Meeting held on 8 November 2004. Details of the Company’s
ESOS and the options granted can be found on the R eport by Directors in this Annual R eport.
Accountability
Principle 10 : Accountability of the Board and management
The Board is accountable to shareholders for the stewardship of the Group. The Board updates shareholders on the operations and financial
position of Etika through quarterly and full-year results announcements as well as timely announcements of other matters as prescribed
by the relevant rules and regulations. The Management is accountable to the Board by providing the Board with the necessary financial
information for the discharge of its duties.
Presently, the Management presents to the AC the interim and full year results and the AC reports on the results to the Board for review and
approval before releasing the results to the SGX-ST and public via SGXNET .
Etika Annual R eport 201245
corporate governance

Audit Committee
Principle 11 : Establishment of audit committee with written terms of reference
The Audit Committee (“AC”) comprises one non-executive director and two independent non-executive directors, one of whom is also the
Chairman of the Committee. The members of the A C as at the date of this report are as follows: -
John Lyn Hian Woon (Chairman) N on-Executive, I ndependent
Teo Chee S eng (Member) N on-Executive, I ndependent
Dato’ Jaya J B Tan (Member) N on-Executive

The principal responsibility of the AC is to assist the Board in maintaining a high standard of corporate governance, particularly by providing
an independent review of the group’s material internal controls, including financial, operational, compliance and risk management controls
at least once annually, to safeguard Etika’s assets and maintain adequate accounting records, with the overall objective of ensuring that the
management creates and maintains an effective control environment in the Group.
The AC has authority to investigate any matter within its terms of reference, gain full access to and co-operation by management, exercise full
discretion to invite any Director or executive officer to attend its meetings, and gain reasonable access to resources to enable it to discharge
its function properly.
The AC meets with the external auditors without the presence of the management at least once a year to review the scope and results of the
audit and its cost effectiveness, as well as the independence and objectivity of the external auditors.
It has undertaken a review of all non-audit services provided by the external auditors and is of the opinion that the provision of such services
would not affect the independence of the auditors.
In performing those functions, the A C reviews :-
• with the external auditors the audit plan, their evaluation of the system of internal accounting controls, their letter to management and
the management’s response;
• the financial statements of Etika and the consolidated financial statements of the group before their submission to the Board of
Directors;
• discuss with the external auditors any suspected fraud or irregularity, or suspected infringement of any relevant laws, rules or regulations;
• potential conflicts of interest (if any);
• the adequacy of the internal audit function and the effectiveness of Etika’s material internal controls;
• independence of the external auditors;
• interested person transactions, if any, falling within the scope of Chapter 9 of the Listing Manual of the SGX-ST on a quarterly basis.;
• the internal control procedures and ensure co-operation given by the management to the external auditors;
• the appointment and re-appointment of external and internal auditors of Etika’s and the audit fees; and
• undertake such other functions and duties as requested by the Board and as required by statute or Listing Manual.
The external auditors have full access to the AC who has the express power to conduct or authorize investigations into any matters within its
terms of reference. Minutes of the A C meetings will be regularly submitted to the Board for its information.
The AC has reviewed the Group’s risk assessment and based on the audit reports and management controls in place, is satisfied that there
are adequate internal controls in the Group.
For the year under review, the Group has accrued an aggregate amount of audit fees of RM972,094, comprising audit fees of RM308,221 paid
to auditors of the Company; and RM557,499 and RM106,374 paid to other auditors for audit fees and non audit service fees respectively . In
compliance with Rule 1207 (6) of the Listing Manual issued by Singapore Exchange Securities Trading Limited, the AC confirmed that it has
undertaken a review of all non-audit services provided by the Auditors and they would not, in the AC’s opinion, affect the independence of
the Auditors.
The Group has complied with Rules 712, 715 and 716 of the Listing Manual in relation to its A uditors.
The AC has recommended the re-appointment of BDO LLP as Auditors for the ensuing year, subject to shareholders’ approval at the
forthcoming A GM.
Etika Annual R eport 201246
corporate governance

corporate governance
Internal Controls and Internal Audit
Principle 12 : Sound system of internal controls
Principle 13 : Setting up independent audit function
The Board is cognizant of its responsibility for maintaining a sound system of internal controls to safeguard the shareholders’ investment and
the Group’s assets and business. Etika’s auditors, BDO LLP , carry out, in the course of their statutory audit, a review of the effectiveness of Etika’s
material internal controls, annually to the extent of their scope laid out in their audit plan.
Material non-compliance and internal control weaknesses noted during their audit and the auditors’ recommendations, are reported to
the AC members. For FY2012, the Board with the concurrence of the AC, is of the view that the system of internal controls that has been
maintained by Etika’s management throughout the financial year is adequate to meet the needs of Etika having addressed the financial,
operational and compliance risks. In an effort to further enhance and improve the Group’s system of internal controls and risk management
policies, internal audit will be carried out on companies within the group identified by the AC and deemed necessary. The internal audit will
be outsourced by the Company.
Communication with Shareholders
Principle 14 : Regular, effective and fair communication with shareholders
Principle 15 : Shareholder participation at AGM
Etika is committed to timely dissemination of information and proper transparency and disclosure of relevant information to SGX-ST,
shareholders, analysts, the public and its employees.
Information is communicated to shareholders and the public through the following channels:
• Notice of Annual General Meeting (“AGM”) and Annual Reports that are issued to all shareholders. The Board strives to ensure that these
reports include all relevant information on the Group, including current developments, strategic plans and disclosures required under
the Companies Act, Singapore Financial Reporting Standards, Listing Manual of the SGX-ST and other relevant statutory and regulatory
requirements;
• Price sensitive announcement of interim and full year results released through SGXNET;
• Disclosures on the SGXNET;
• Press releases;
• Press and analysts’ briefings as may be appropriate; and
• The Group’s website (www.etika-intl.com) at which shareholders and the public may access information on the Group.
All shareholders are welcome to attend the AGM. The Board of Directors, AC members and other committee members, chief financial officer,
auditors and the Company Secretary/S ecretaries will be present at general meetings of the Company and are available to address any
questions from shareholders regarding the Group and its businesses.
Material Contracts
No material contracts were entered into between Etika or any of its subsidiaries involving the interests of any director or controlling
shareholder, which are either subsisting at the end of the financial year or, if not then subsisting, entered into since the end of the previous
financial year except for related party transactions and director’s remuneration as disclosed in the financial statements.
Interested Person Transactions
Etika has established procedures to ensure that all transactions with interested persons are reported on a timely manner to the AC and that
the transactions are at arm’s length basis. All interested person transactions are subject to review by the AC to ensure compliance with the
established procedures.
Etika Annual R eport 201247

The aggregate value of interested person transactions entered into during the year were as follows :-
Name of Interested Person Aggregate value of all interested person Aggregate value of all interested
transactions during the financial year under review person transactions conducted under
(excluding transactions less than S$100,000 and shareholders’ mandate pursuant to
transactions conducted under shareholders’ mandate Rule 920 of the SGX Listing Manual
pursuant to Rule 920 of the SGX Listing Manual) (excluding transactions less than S$100,000)
R M R M
Perinsu (Broker I nsurans) S dn Bhd 3,079,830 -
- Insurance premium (or approximately S$1,249,019)

Life Medicals S dn Bhd 577,500 -
- Purchase of packing materials (or approximately S$234,204)

Sensational Success S dn Bhd 915,994 -
- Purchase of packing materials (or approximately S$371,479)

Motif Etika S dn Bhd 924,000 -
- Rental of office premises (or approximately S$374,726)
Based on average exchange rate for the year ended 30 S eptember 2012 of S$1 = RM2.4658
Risk Management
The Group regularly reviews and improves its business and operational activities to identify areas of significant business risks as well as taking
appropriate measures to control and mitigate these risks. The Group reviews all significant control policies and procedures and highlights all
significant matters to the A C and the Board. The financial risk management objectives and policies are outlined in the financial statements.
Dealings in Securities
Following the introduction of Best Practice Guide by SGX-ST (“the Code”), the company has brought to the attention of its employees the
implications of insider trading and recommendations of the Best P ractice Guide.
Etika has adopted and implemented an internal compliance of the Code which prohibits securities dealings by directors and employees
while in possession of unpublished price-sensitive information. Officers are discouraged to deal in the Company’s securities on short-term
considerations.
Directors, executives and any other employees who have access to material price-sensitive information are prohibited from dealing in
securities of Etika prior to the announcement of a matter that involves material unpublished price-sensitive information. They are required to
report on all their dealings in Etika securities to Etika. They are also prohibited from dealing in Etika’s securities during the period commencing
two weeks before the announcement of the Etika’s results for each of the first three quarters of the financial year and during one month
before the announcement of the Etika’s full year results and ending on the date of the relevant announcement.
The Group has complied with the Best P ractices Guide on S ecurities Transactions issued by the Singapore Exchange.
corporate governance
Etika Annual R eport 201248

50 Report of the Directors
54 Statement by Directors
55 Independent Auditors’ Report
56 Statements of Financial Position
57 Consolidated Statement of Comprehensive Income
58 Statements of Changes in Equity
60 Consolidated Statement of Cash Flows
62 Notes to the Financial Statements
financial
statements

Etika Annual Report 201250
The Directors of the Company present their report to the members together with the audited financial statements of the Group for the financial
year ended 30 September 2012 and the statement of financial position of the Company as at 30 September 2012 and statement of changes in
equity of the Company for the financial year ended 30 September 2012.
1. Directors
The Directors of the Company in office at the date of this report are:
Dato’ Jaya J B Tan (Non-Executive Chairman)
Dato’ Kamal Y P Tan (Group Chief Executive Officer)
Mah Weng Choong (Group Chief Operating Officer)
John Lyn Hian Woon (Independent Director)
Teo Chee Seng (Independent Director)
Tan Yet Meng (Non-Executive Director)
Khor Sin Kok (Deputy Group Chief Operating Officer and Alternate Director to Mah Weng Choong)
Tan San Chuan (Alternate Director to Tan Yet Meng)
2. Arrangements to enable Directors to acquire shares or debentures
Except as described in paragraph 5 below, neither at the end of nor at any time during the financial year was the Company a party to
any arrangement whose object is to enable the Directors of the Company to acquire benefits by means of the acquisition of shares in or
debentures of the Company or any other body corporate.
3. Directors’ interests in shares or debentures
According to the Register of the Directors’ Shareholdings kept by the Company for the purposes of Section 164 of the Singapore Companies
Act, Cap. 50 (the “Act”), none of the Directors of the Company who held office at the end of the financial year had any interest in the shares
or debentures of the Company and its related corporations except as detailed below:
Shareholdings registered in the Shareholdings in which Directors
name of Directors and Nominees are deemed to have an interest
Balance as at Balance as at Balance as at Balance as at Balance as at Balance as at
21.10.2012 30.09.2012 01.10.2011 21.10.2012 30.09.2012 01.10.2011
The Company Number of ordinary shares
Dato’ Jaya J B Tan 90,856,364 90,856,364 90,856,364 183,199,786 183,199,786 183,099,786
Dato’ Kamal Y P Tan 90,481,072 90,481,072 90,481,072 183,575,078 183,575,078 183,475,078
Mah Weng Choong 28,347,224 28,347,224 28,347,224 - - -
John Lyn Hian Woon 186,000 186,000 186,000 - - -
Teo Chee Seng 150,000 150,000 150,000 - - -
Tan Yet Meng 60,649,926 60,649,926 60,649,926 213,406,224 213,406,224 213,306,224
Khor Sin Kok 27,400,224 27,400,224 27,400,224 - - -
Tan San Chuan 14,809,394 14,809,394 14,809,394 - - -
REPORT OF THE DIRECTORS

Etika Annual Report 201251
3. Directors’ interests in shares or debentures (Continued)
Shareholdings registered in the name of Directors and Nominees
Balance as at Balance as at Balance as at
21.10.2012 30.09.2012 01.10.2011
The Company Number of options pursuant to Employee Share Options
Scheme to subscribe for ordinary shares
Dato’ Jaya J B Tan 6,000,000 6,000,000 6,000,000
Dato’ Kamal Y P Tan 8,000,000 8,000,000 8,000,000
Mah Weng Choong 4,000,000 4,000,000 4,000,000
Tan Yet Meng 6,000,000 6,000,000 6,000,000
Khor Sin Kok 4,000,000 4,000,000 4,000,000
By virtue of Section 7 of the Act, Dato’ Jaya J B Tan, Dato’ Kamal Y P Tan and Tan Yet Meng are deemed to have interests in the shares of all
the subsidiaries, directly and indirectly held by the Company, as at the beginning and end of the financial year.
4. Directors’ contractual benefits
Since the end of the previous financial year, no Director of the Company has received or become entitled to receive a benefit by reason of
a contract made by the Company or a related corporation with the Director, or with a firm of which he is a member, or with a company in
which he has a substantial financial interest, except as disclosed in the financial statements.
5. Share options
At an Extraordinary General Meeting held on 8 November 2004, the shareholders approved the Etika Employee Share Options Scheme (“ESOS”)
granting share options to employees and Directors of the Group, including the controlling shareholder, namely Dato’ Kamal Y P Tan.
On 22 January 2010, the Company’s shareholders approved the amendments to the rules of the ESOS as contained in the Circular to
Shareholders dated 5 January 2010 to be in line with the relevant laws and regulations of the Listing Manual following the transfer of the
listing status from Catalist Board to the Main Board of the SGX-ST as well as to better clarify the terms and conditions of the ESOS.
On 24 September 2010, the Company’s shareholders approved the participation of the other controlling shareholders, namely Dato’ Jaya J B Tan
and Tan Yet Meng, in the ESOS.
The Remuneration Committee is responsible for administering the ESOS. As at the date of the report, the members of the Remuneration
Committee are Teo Chee Seng, John Lyn Hian Woon and Dato’ Jaya J B Tan.
REPORT OF THE DIRECTORS

Etika Annual Report 201252
5. Share options (Continued)
Options granted pursuant to the ESOS are in respect of ordinary shares of the Company. Options exercised and cancelled during the
financial year and options outstanding as at the end of the financial year under the ESOS were as follows:
Balance at Adjustment/ Lapsed/ Balance at Exercise Exercise
Date of grant 01.10.2011 Granted Exercised Cancelled 30.09.2012 price period
10.02.2010 13,438,000 - (1,610,000) (40,000) 11,788,000 S$0.164* 10.02.2012 to
09.02.2017
13.10.2010 27,230,000 - - - 27,230,000 S$0.400 13.10.2012 to
12.10.2017
40,668,000 - (1,610,000) (40,000) 39,018,000
* Number of valid options and exercise price as at 12 October 2010 has been adjusted for a bonus issue of one for one declared on that date.
All of the above options were granted at a discount of 20% of the Market Price. The Market Price is equal to the weighted average price
per share, calculated based on the total value of transactions in the share (the sum of each transacted price multiplied by the respective
volume) divided by the volume transacted for the last three traded market days immediately preceding the offer date of that option, as
determined by reference to the daily official list or other publication published by the SGX-ST and rounded up to the nearest whole cent in
the event of fractional prices.
The information on Directors participating in the option schemes are as follows:
Aggregate options Aggregate options Aggregate options
granted since exercised since exercised since
Options adjusted/ commencement commencement commencement
granted during of the plan to of the plan to of the plan to
Name financial year 30.09.2012 30.09.2012 30.09.2012
Directors who are also
controlling shareholders
Dato’ Kamal Y P Tan - 8,000,000 - 8,000,000
Dato’ Jaya J B Tan - 6,000,000 - 6,000,000
Tan Yet Meng - 6,000,000 - 6,000,000
Directors
Mah Weng Choong - 4,000,000 - 4,000,000
Khor Sin Kok - 4,000,000 - 4,000,000
Save and except for Dato’ Kamal Y P Tan, Dato’ Jaya J B Tan and Tan Yet Meng, no directors or employees of the Group received 5% or more
of the total number of options available under the ESOS during the financial year under review, the details of options of which have been
disclosed above.
These options do not entitle the holder to participate by virtue of the options, in any share issue of any other corporations.
There were no unissued shares of the Company or its subsidiaries under options as at the end of the financial year.
REPORT OF THE DIRECTORS

Etika Annual Report 201253
REPORT OF THE DIRECTORS
6. Audit Committee
The Audit Committee (“AC”) comprises the following members, all of whom are Non-Executive Directors and a majority of whom, including
the Chairman, are Independent Directors. The members of the Audit Committee during the financial year and at the date of this report
are:
John Lyn Hian Woon (Chairman)
Teo Chee Seng
Dato’ Jaya J B Tan
The AC meets periodically to perform the following functions:
a. review with the external independent auditors on the audit plan;
b. review the consolidated financial statements of the Group, statement of financial position and statement of changes in equity of the
Company, and the external independent auditors’ report on those financial statements, before submission to the Board of Directors
for approval;
c. review the co-operation given by the management to the external independent auditors;
d. consider the appointment and re-appointment of the external independent auditors;
e. review and approve interested person transactions;
f. review potential conflict of interests, if any;
g. undertake such other reviews and projects as may be requested by the Board and will report to the Board its findings from time to
time on matters arising and requiring the attention of the Audit Committee; and
h. generally undertake such other functions and duties as may be required by statute or the SGX-ST Listing Manual, and by such
amendments made thereto from time to time.
The AC has recommended to the Board of Directors, the nomination of BDO LLP, for re-appointment as independent auditors of the
Company at the forthcoming Annual General Meeting.
7. Board Opinion on the Adequacy of Internal Controls Addressing Financial, Operational and Compliance Risks
A system of internal controls has been implemented for all companies within the Group. The controls are designed to provide reasonable
assurance that assets are safeguarded, operational controls are in place, business risks are suitably protected, proper accounting records are
maintained and financial information used within the business and for publication is accurate and reliable.
During the financial year, the Board with the concurrence of AC, after carrying out a review, is of the opinion that the internal controls of
the Group are adequate to address operational, financial and compliance risks.  In arriving at the opinion, the Board is of the view that
the internal controls of the Group have reasonable assurance about achieving the effectiveness and efficiency of operations; reliability of
financial reporting; and compliance with applicable laws and regulations.
While no system can provide absolute assurance against the occurrence of material errors, losses, fraud or other irregularities, the
Management, in designing the controls, had taken into account the business risk, its likelihood of occurrence and the cost of protection.
8. Independent auditors
The independent auditors, BDO LLP, have expressed their willingness to accept re-appointment.
On behalf of the Board of Directors
Dato’ Jaya J B Tan Dato’ Kamal Y P Tan
Non-Executive Chairman Group Chief Executive Officer
Singapore
7 December 2012

Etika Annual Report 201254
In the opinion of the Board of Directors of the Company,
(a) the accompanying consolidated financial statements of the Group and the statement of financial position and statement of changes
in equity of the Company together with the notes thereon are properly drawn up in accordance with the provisions of the Singapore
Companies Act, Cap. 50 and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Group
and of the Company as at 30 September 2012 and of the results, changes in equity and cash flows of the Group and changes in equity of
the Company for the financial year ended on that date; and
(b) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall
due.
On behalf of the Board of Directors
Dato’ Jaya J B Tan Dato’ Kamal Y P Tan
Non-Executive Chairman Group Chief Executive Officer
Singapore
7 December 2012
STATEMENT BY DIRECTORS

Etika Annual Report 201255
Report on the Financial Statements
We have audited the accompanying financial statements of Etika International Holdings Limited (the “Company”) and its subsidiaries (the
“Group”) which comprise the statements of financial position of the Group and of the Company as at 30 September 2012, and the consolidated
statement of comprehensive income, statement of changes in equity and statement of cash flows of the Group and statement of changes in
equity of the Company for the financial year then ended, and a summary of significant accounting policies and other explanatory information
as set out on pages 56 to 127.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the
Singapore Companies Act, Cap. 50 (the “Act”) and Singapore Financial Reporting Standards, and for devising and maintaining a system of internal
accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition;
and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair profit and loss
accounts and balance sheets and to maintain accountability of assets.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with
Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of financial
statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements of the Group and the statement of financial position and statement of changes in equity
of the Company are properly drawn up in accordance with the provisions of the Act and Singapore Financial Reporting Standards so as to give
a true and fair view of the state of affairs of the Group and of the Company as at 30 September 2012 and of the results, changes in equity and
cash flows of the Group and changes in equity of the Company for the financial year ended on that date.
Report on Other Legal and Regulatory Requirements
In our opinion, the accounting and other records required by the Act to be kept by the Company and the subsidiaries incorporated in Singapore
of which we are the independent auditors, have been properly kept in accordance with the provisions of the Act.
BDO LLP
Public Accountants and
Certified Public Accountants
Singapore
7 December 2012
Independent Auditor’s Repor t
to the members of Etika International Holdings L imited

Etika Annual Report 201256
Group Company
2012 2011 2012 2011
Note RM’000 RM’000 RM’000 RM’000
Non-current assets
Property, plant and equipment 4 308,559 259,737 20 24
Prepaid lease payment for land 5 31,639 21,031 - -
Investments in subsidiaries 6 - - 38,407 37,776
Trade receivables 11 257 131 - -
Available-for-sale financial assets 7 235 265 - -
Deferred tax assets 8 12,789 14,892 - -
Intangible assets 9 112,126 110,766 124 105
465,605 406,822 38,551 37,905
Current assets
Inventories 10 132,072 147,008 - -
Trade and other receivables 11 156,604 156,083 96,227 90,470
Tax recoverable 9,262 5,002 - -
Fixed deposits 12 4,487 2,145 - -
Cash and cash equivalents 13 40,697 29,147 2,415 1,084
343,122 339,385 98,642 91,554
Less:
Current liabilities
Trade and other payables 14 115,966 101,780 31,506 25,678
Bank borrowings 15 202,676 169,414 - -
Finance lease payables 16 3,081 2,913 - -
Derivative financial instruments 17 14 317 - -
Current income tax payable 3,790 1,627 - -
325,527 276,051 31,506 25,678
Net current assets 17,595 63,334 67,136 65,876
Less:
Non-current liabilities
Other payables 14 2,748 1,640 - -
Bank borrowings 15 224,697 220,877 - -
Finance lease payables 16 5,202 5,268 - -
Financial guarantee contracts 18 - - 7,645 7,645
Deferred tax liabilities 19 19,687 19,653 - -
252,334 247,438 7,645 7,645
Net assets 230,866 222,718 98,042 96,136
Capital and reserves
Share capital 20 57,064 56,412 57,064 56,412
Treasury shares 20 (183) (183) (183) (183)
Foreign currency translation reserve 21 (3,636) (2,093) 4,339 3,184
Fair value reserves 22 (541) (342) - -
Share options reserve 9,507 5,259 9,507 5,259
Accumulated profits 165,659 159,355 27,315 31,464
Equity attributable to the owners of the Company 227,870 218,408 98,042 96,136
Non-controlling interests 2,996 4,310 - -
Total equity 230,866 222,718 98,042 96,136
STATEMENTS OF FINANCIAL POSITI ON
AS AT 30 SEPTEMBER 2012
The accompanying notes form an integral part of the financial statements.

Etika Annual Report 201257
2012 2011
Note RM’000 RM’000
Revenue 23 984,800 879,603
Cost of goods sold (780,241) (699,109)
Gross profit 204,559 180,494
Other operating income 4,197 4,535
Administrative expenses (45,979) (52,860)
Selling and marketing expenses (59,289) (44,100)
Warehouse and distribution expenses (38,796) (33,295)
Research and development expenses (2,334) (1,669)
Other operating expenses (6,370) (8,266)
Gain on bargain purchase arising from acquisition of subsidiaries 6 - 10,459
Finance costs 24 (25,989) (21,144)
Profit before income tax 25 29,999 34,154
Income tax expense 26 (9,403) (5,569)
Profit after income tax 20,596 28,585
Other comprehensive income:
Currency translation differences arising from consolidation (1,477) (544)
Net fair value changes in employee benefit (169) (509)
Net fair value changes on available-for-sale financial assets (30) 20
Total comprehensive income for the financial year 18,920 27,552
Profit attributable to:
Owners of the Company 21,976 28,823
Non-controlling interests (1,380) (238)
20,596 28,585
Total comprehensive income attributable to:
Owners of the Company 20,234 27,714
Non-controlling interests (1,314) (162)
18,920 27,552
Earnings per share attributable to owners of the parent 27
Basic 4.12 sen 5.40 sen
Diluted 4.08 sen 5.03 sen
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
The accompanying notes form an integral part of the financial statements.

Etika Annual Report 201258
Attributable to owners of the Company
Foreign
currency Fair Share Non-
Share Treasury translation value options Accumulated controlling Total
Group capital shares reserve reserves reserve profits Total interests equity
2012 Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Balance at 1 October 2011 56,412 (183) (2,093) (342) 5,259 159,355 218,408 4,310 222,718
Profit for the year - - - - - 21,976 21,976 (1,314) 20,662
Other comprehensive income:
Currency translation differences
arising from consolidation - - (1,543) - - - (1,543) - (1,543)
Net fair value changes in employee benefit - - - (169) - - (169) - (169)
Net fair value changes on available-for-sale
financial assets - - - (30) - - (30) - (30)
Total other comprehensive income - - (1,543) (199) - - (1,742) - (1,742)
Total comprehensive income for the
financial year - - (1,543) (199) - 21,976 20,234 (1,314) 18,920
Issuance of ordinary shares 20 652 - - - - - 652 - 652
Share options expense - - - - 4,248 - 4,248 - 4,248
Dividends 28 - - - - - (15,672) (15,672) - (15,672)
Balance at 30 September 2012 57,064 (183) (3,636) (541) 9,507 165,659 227,870 2,996 230,866
2011
Balance at 1 October 2010 56,412 (183) (1,473) 147 582 153,043 208,528 4,472 213,000
Profit for the year - - - - - 28,823 28,823 (162) 28,661
Other comprehensive income:
Currency translation differences
arising from consolidation - - (620) - - - (620) - (620)
Net fair value changes in employee benefit - - - (509) - - (509) - (509)
Net fair value changes on available-for-sale
financial assets - - - 20 - - 20 - 20
Total other comprehensive income - - (620) (489) - - (1,109) - (1,109)
Total comprehensive income
for the financial year - - (620) (489) - 28,823 27,714 (162) 27,552
Share options expense - - - - 4,677 - 4,677 - 4,677
Dividends 28 - - - - - (22,511) (22,511) - (22,511)
Balance at 30 September 2011 56,412 (183) (2,093) (342) 5,259 159,355 218,408 4,310 222,718
STATEMENTs OF CHANGES IN E QUITY
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
The accompanying notes form an integral part of the financial statements.

Etika Annual Report 201259
Foreign
currency Share
Share Treasury translation options
Accumulated Total
Company capital shares reserve reserve profits equity
2012 Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Balance at 1 October 2011 56,412 (183) 3,184 5,259 31,464 96,136
Profit for the year - - - - 11,523 11,523
Other comprehensive income:
Exchange differences on translating
foreign operation - - 1,155 - - 1,155
Total other comprehensive income - - 1,155 - - 1,155
Total comprehensive income for the
financial year - - 1,155 - 11,523 12,678
Issuance of ordinary shares 20 652 - - - - 652
Share options expense - - - 4,248 - 4,248
Dividends 28 - - - - (15,672) (15,672)
Balance at 30 September 2012 57,064 (183) 4,339 9,507 27,315 98,042
2011
Balance at 1 October 2010 56,412 (183) 211 582 36,997 94,019
Profit for the year - - - - 16,978 16,978
Other comprehensive income:
Exchange differences on translating
foreign operation - - 2,973 - - 2,973
Total other comprehensive income - - 2,973 - - 2,973
Total comprehensive income for the
financial year - - 2,973 - 16,978 19,951
Share options expense - - - 4,677 - 4,677
Dividends 28 - - - - (22,511) (22,511)
Balance at 30 September 2011 56,412 (183) 3,184 5,259 31,464 96,136
STATEMENTs OF CHANGES IN E QUITY
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
The accompanying notes form an integral part of the financial statements.

Etika Annual Report 201260
2012 2011
Note RM’000 RM’000
Cash flows from operating activities
Profit before income tax 29,999 34,154
Adjustments for:
Allowance for doubtful receivables 7,470 1,767
Allowance for doubtful receivables no longer required, now written back (643) (610)
Amortisation of prepaid lease payment for land 359 235
Amortisation of intangible assets 285 242
Depreciation of property, plant and equipment 22,061 20,570
Foreign currency exchange loss/(gain) 2,941 (671)
Gain on bargain purchase arising from acquisition of subsidiaries - (10,459)
Gain on disposal of property, plant and equipment (190) (230)
Fair value (gain)/loss arising from derivative financial instruments (303) 317
Interest income (419) (508)
Interest expense 25,989 21,144
Inventories written off 2,377 3,351
Property, plant and equipment written off 97 375
Share options expense 4,248 4,677
Others - 69
Operating profit before working capital changes 94,271 74,423
Working capital changes:
Inventories 12,559 (44,825)
Trade and other receivables (7,475) 2,229
Trade and other payables 15,125 8,972
Cash generated from operations 114,480 40,799
Interest paid (5,591) (6,659)
Income tax paid, net (10,501) (14,273)
Net cash generated from operating activities 98,388 19,867
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
The accompanying notes form an integral part of the financial statements.

Etika Annual Report 201261
2012 2011
Note RM’000 RM’000
Cash flows from investing activities
Purchase of property, plant and equipment 4 (71,997) (40,562)
Payment of prepaid lease for land 5 (11,372) -
Net cash effect from disposal of a subsidiary 6 - -
Net cash outflow from acquisition of subsidiaries 6 - (103,354)
Net cash outflow from prior year acquisition of a subsidiary - (542)
Purchase of intangible assets 9 (1,404) (968)
Proceeds from disposal of property, plant and equipment 535 465
Proceeds from disposal of intangible assets 66 -
Interest received 419 508
Net cash used in investing activities (83,753) (144,453)
Cash flows from financing activities
Dividends paid to shareholders 28 (15,672) (22,511)
Proceeds from issuance of ordinary shares 20 652 -
Interest paid (20,398) (14,485)
(Increase)/Decrease in fixed deposits pledged to banks (16) 646
Proceeds from bank borrowings 519,830 479,965
Repayment of bank borrowings (458,650) (343,797)
Repayment of finance lease obligations (3,287) (4,064)
Net cash generated from financing activities 22,459 95,754
Net change in cash and cash equivalents 37,094 (28,832)
Cash and cash equivalents at beginning of financial year (3,081) 25,333
Effect of exchange rate changes 167 418
Cash and cash equivalents at end of financial year 13 34,180 (3,081)
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
The accompanying notes form an integral part of the financial statements.

Etika Annual Report 201262
These notes form an integral part of and should be read in conjunction with the financial statements.
1. General corporate information
The statement of financial position and statement of changes in equity of Etika International Holdings Limited (the “Company”) and the
consolidated financial statements of the Company and its subsidiaries (the “Group”) for the financial year ended 30 September 2012 were
authorised for issue in accordance with a Directors’ resolution dated 7 December 2012.
The Company is a public limited company, incorporated and domiciled in Singapore with its registered office at 4 Shenton Way, #17-01 SGX
Centre II, Singapore 068807. The Company’s registration number is 200313131Z. The principal place of business is located at 20 Maxwell
Road, #12-05 Maxwell House, Singapore 069113.
The principal activity of the Company is that of an investment holding company.
The principal activities of the subsidiaries are set out in Note 6 to the financial statements.
2. Summary of significant accounting policies
2.1 Basis of preparation of financial statements
The financial statements are prepared in accordance with the provisions of the Singapore Companies Act, Cap. 50 and Singapore
Financial Reporting Standards (“FRS”) including related interpretations of FRS (“INT FRS”) and are prepared under the historical cost
convention, except as disclosed in the accounting policies below.
The individual financial statements of each entity in the Group are measured and presented in the currency of the primary economic
environment in which the entity operates (its “functional currency”).
The functional currency of the Company is Singapore Dollar. However as the Group’s significant operation is in Malaysia, the
consolidated financial statements of the Group and the statement of financial position and statement of changes in equity of the
Company are presented in Ringgit Malaysia.
All financial information presented in Ringgit Malaysia (“RM”) has been rounded to the nearest thousands, unless otherwise stated.
During the financial year, the Group and the Company adopted all the new and revised FRS and INT FRS that are relevant to their
operations and effective for the current financial year. The adoption of these new or revised FRS and INT FRS did not result in any
substantial changes to the Group’s and the Company’s accounting policies and has no material effect on the amounts reported for
the current or prior years, except as disclosed below:
FRS 24 (2010) Related Party Disclosures
FRS 24 (2010) changes certain requirements for related party disclosures for entities under control, joint control or significant influence
of a government (“government-related entities”). FRS 24 (2010) also made related party relations symmetrical between each of the
related parties and new relationships were included and clarified in the definition of a related party. The Group has applied the
amendments to FRS 24 on a retrospective basis for annual periods beginning on or after 1 October 2011. As this is a disclosure
standard, it has no impact on the financial position or financial performance of the Company or the Group.
FRS and INT FRS issued but not yet effective
At the date of authorisation of these financial statements, the Group and the Company have not adopted the following new/revised
FRS (including consequential amendments) and INT FRS which are potentially relevant to the Group and the Company that have been
issued but not yet effective for the current financial year.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012

Etika Annual Report 201263
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
2. Summary of significant accounting policies (Continued)
2.1 Basis of preparation of financial statements (Continued)
Effective date
(Annual periods
beginning on or after)
FRS 1 : Amendments to FRS 1 – Presentation of Items of Other Comprehensive Income 1 July 2012
FRS 19 : Employment Benefits 1 January 2013
FRS 107 : Offsetting of Financial Assets and Financial Liabilities 1 January 2013
FRS 113 : Fair Value Measurements 1 January 2013
FRS 27 : Separate Financial Statements 1 January 2014
FRS 28 : Investments in Associates and Joint Ventures 1 January 2014
FRS 32 : Offsetting of Financial Assets and Financial Liabilities 1 January 2014
FRS 110 : Consolidated Financial Statements 1 January 2014
FRS 110 : Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in
Other Entities: Transition Guidance (Amendments to FRS 110, FRS 111 and FRS 112) 1 January 2014
FRS 112 : Disclosure of Interests in Other Entities 1 January 2014
Improvements to FRSs 2012 1 January 2013
The Group and the Company have not early adopted any of the above new or revised standards, interpretations and amendments to
the existing standards in financial year 2012.
The management anticipates that the adoption of the above FRS and INT FRS, if applicable, in the future periods will not have a
material impact on the financial statements in the period of their initial adoption, except as discussed below.
Amendments to FRS 1 – Presentation of Items of Other Comprehensive Income
The amendments to FRS 1 changes the grouping of items presented in other comprehensive income. Items that could be reclassified
to the consolidated statement of comprehensive income at a future point in time would be presented separately from items which will
never be reclassifified. As the amendments only affect the presentation of items that are already recognised in other comprehensive
income, the Group does not expect any impact on its financial position or performance upon adoption of this standard from the
financial year beginning 1 October 2012.
FRS 110 Consolidated Financial Statements
FRS 110 changes the definition of control and applies it to all investees to determine the scope of consolidation. FRS 110 requirements
will apply to all types of potential subsidiary. FRS 110 requires an investor to reassess the decision on whether to consolidate an
investee when events indicate that there may be a change to one of the three elements of control, ie. power, variable returns and the
ability to use power to affect returns. This FRS is to be applied for annual periods beginning on or after 1 January 2014. The Group is in
the process of assessing its impact to the Group’s financial position or performance upon adoption of this standard.
FRS 112 Disclosure of Interests in Other Entities
FRS112 is a new and comprehensive standard on disclosure requirements for all forms of interest in other entities, including join
arrangements, associates, special purpose vehicles and other off balance sheet vehicles. FRS 112 requires an entity to disclose
information that helps users of its financial statements to evaluate the nature and risks associated with its interests in other entities and
the effects of those interests on its financial statements. The Group is currently determining the impact of the disclosure requirements.
As this is a disclosure standard, it will have no impact to the financial position and financial performance of the Group upon adoption
of this standard from the financial year beginning 1 October 2014.

Etika Annual Report 201264
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
2. Summary of significant accounting policies (Continued)
2.1 Basis of preparation of financial statements (Continued)
FRS and INT FRS issued but not yet effective (Continued)
FRS 113 Fair Value Measurements
FRS 113 provides guidance on how to measure fair values including those for both financial and non-financial items and introduces
significantly enhanced disclosure about fair values. It does not address or change the requirements on when fair values should be
used. When measuring fair value, an entity is required to use valuation techniques that maximise the use of relevant observable inputs
and minimise the use of unobservable inputs. It establishes a fair value hierarchy for doing this. This FRS is to be applied for annual
periods beginning on or after 1 January 2013. The Group is in the process of assessing its impact to the Group’s financial position or
performance upon adoption of this standard.
The preparation of financial statements in conformity with FRS requires management to make judgements, estimates and assumptions
that affect the Group’s application of accounting policies and reported amounts of assets, liabilities, revenue and exepenses. Although
these estimates are based on management’s best knowledge of current events and actions, actual results may differ from those
estimates. Critical accounting judgements and key resources of estimation uncertainty used that are significant to the financial
statements are disclosed in Note 3 to the financial statements.
2.2 Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries.
Subsidiaries are entities over which the Group has power to govern the financial and operating policies, generally accompanying
a shareholding giving rise to a majority of the voting rights so as to obtain benefits from their activities. The existence and effect
of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls
another entity.
Subsidiaries are consolidated from the date on which control is transferred to the Group up to the effective date on which control
ceases, as appropriate.
In preparing the consolidated financial statements, transactions, balances and unrealised gains on transactions between group
companies are eliminated. Unrealised losses are also eliminated in the same way as unrealised gains, but only to the extent that there
is no impairment.
The financial statements of the subsidiaries are prepared for the same reporting date as the Company, using consistent accounting
policies. Where necessary, accounting policies of subsidiaries are changed to ensure consistency with the policies adopted by the
Group.
Non-controlling interests is that part of the net results of operations and of net assets of a subsidiary attributable to interests which
are not owned directly or indirectly by the Group. Non-controlling interests in subsidiaries are identified separately from the Group’s
equity therein.
Non-controlling interests in the acquiree may be initially measured either at fair value or at the non-controlling interests’ proportionate
share of the fair value of the acquiree’s identifiable net assets. The choice of measurement is made on an acquisition-by-acquisition
basis. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition
plus the non-controlling interests’ share of subsequent changes in equity. Total comprehensive income is attributed to non-controlling
interests even if this results in the non-controlling interests having a deficit balance.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. The
carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests
in the subsidiary. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the
consideration paid or received is recognised directly in equity and attributed to owners of the Company.

Etika Annual Report 201265
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
2. Summary of significant accounting policies (Continued)
2.2 Basis of consolidation (Continued)
When the Group loses control of a subsidiary, the gain or loss on disposal is calculated as the difference between (i) the aggregate
of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the
assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. Amounts previously recognised in other
comprehensive income in relation to the subsidiary are accounted for (i.e. reclassified to consolidated statement of comprehensive
income or transferred directly to retained earnings) in the same manner as would be required if the relevant assets or liabilities were
disposed of. The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair
value on initial recognition for subsequent accounting under FRS 39 Financial Instruments: Recognition and Measurement or, when
applicable, the cost on initial recognition of an investment in an associate or jointly controlled entity.
Investments in subsidiaries are stated at cost less any accumulated impairment loss that has been recognised in the statement of
comprehensive income.
2.3 Business combination
Business combination on or after 1 October 2009
The acquisition of subsidiaries and businesses is accounted for using the acquisition method. The cost of the acquisition is measured
at the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments
issued by the Group in exchange for control of the acquiree. Acquisition-related costs are recognised in the consolidated statement of
comprehensive income as incurred.
The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under FRS 103 are
recognised at their fair values at the acquisition date, except for non-current assets (or disposal groups) that are classified as held-for-
sale in accordance with FRS 105 Non-Current Assets Held for Sale and Discontinued Operations, which are recognised and measured at
the lower of cost and fair value less costs to sell.
Where a business combination is achieved in stages, the Group’s previously held interests in the acquired entity are remeasured
to fair value at the acquisition date (i.e. the date the Group attains control) and the resulting gain or loss, if any, is recognised in the
consolidated statement of comprehensive income. Amounts arising from interests in the acquirer prior to the acquisition date that
have previously been recognised in other comprehensive income are reclassified to the consolidated statement of comprehensive
income, where such treatment would be appropriate if that interest were disposed of.
The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under FRS 103 are
recognised at their fair value at the acquisition date, except that:
• deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognised and measured
in accordance with FRS 12 Income Taxes and FRS 19 Employee Benefits respectively;
• liabilities or equity instruments related to the replacement by the Group of an acquiree’s share-based payment awards are
measured in accordance with FRS 102 Share-Based Payment; and
• assets (or disposal groups) that are classified as held for sale in accordance with FRS 105 Non-Current Assets Held for Sale and
Discontinued Operations are measured in accordance with that Standard.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination
occurs, the Group reports provisional amounts for the items from which the accounting is incomplete. Those provisional amounts
are adjusted during the measurement period (see below), or additional assets or liabilities are recognised, to reflect new information
obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts
recognised as of that date.
The measurement period is the period from the date of acquisition to the date the Group obtains complete information about facts
and circumstances that existed as of the acquisition date – and is subject to a maximum of one year.

Etika Annual Report 201266
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
2. Summary of significant accounting policies (Continued)
2.3 Business combination (Continued)
Business combination on or after 1 October 2009 (Continued)
Goodwill arising on acquisition is recognised as an asset at the acquisition date and initially measured at cost, being the excess of the
sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer
previously held equity interest (if any) in the entity over net of the acquisition-date amounts of the identifiable assets acquired and the
liabilities assumed.
If, after reassessment, the Group’s interest in the net fair value of the acquiree’s identifiable net assets exceeds the sum of the
consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously
held equity interest in the acquiree (if any), the excess is recognised immediately in consolidated statement of comprehensive income
as a bargain purchase gain.
Business combination on or before 30 September 2009
The purchase method of accounting is used to account for business combination. The cost of an acquisition is measured as the fair
value of the assets given, equity instruments issued and liabilities assumed at the date of exchange, plus costs directly attributable to
the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured
initially at their fair values on the date of acquisition, irrespective of the extent of any non-controlling interests (formerly known as
minority interest).
Any excess of the cost of business combination over the Group’s interest in the net fair value of the identifiable assets, liabilities and
contingent liabilities represents goodwill, accounted for in accordance with Note 2.5 (i) to the financial statements.
Any excess of the Group’s interest over the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of
business combination is recognised as gain on bargain purchase arising from acquisition of subsidiaries, credited in the consolidated
statement of comprehensive income of the Group on the date of acquisition.
2.4 Property, plant and equipment
Property, plant and equipment are stated at cost, less accumulated depreciation and impairment loss, if any.
The cost of property, plant and equipment includes its purchase price and any costs directly attributable to bringing the asset to the
location and condition necessary for it to be capable of operating in the manner intended by management. Dismantlement, removal
or restoration costs are included as part of the cost of property, plant and equipment if the obligation for dismantlement, removal or
restoration is incurred as a consequence of acquiring or using the property, plant and equipment.
Subsequent expenditure relating to the property, plant and equipment that has already been recognised is added to the carrying
amount of the asset when it is probable that the future economic benefits, in excess of the standard of performance of the asset before
the expenditure was made, will flow to the Group and the Company, and the cost can be reliably measured. All other subsequent
expenditure is recognised in the consolidated statement of comprehensive income as expenses when incurred.

Etika Annual Report 201267
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
2. Summary of significant accounting policies (Continued)
2.4 Property, plant and equipment (Continued)
On disposal of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount is
recognised in the consolidated statement of comprehensive income.
Depreciation is calculated on the straight-line method so as to write off the depreciable amount of the property, plant and equipment
over their estimated useful lives as follows:
Years
Factory buildings 40 – 50
Plant and machinery 7.5 – 20
Cold room and freezer 10
Lab equipment 5 - 10
Furniture and fittings 10 - 20
Renovation 5 - 10
Motor vehicles 5 – 6.25
Office equipment 3 – 10
Computer system 5
Assets under construction represent property, plant and equipment under construction, which is stated at cost less any impairment
loss and is not depreciated. Assets under construction is reclassified to appropriate categories of property, plant and equipment when
completed and ready for use and depreciation will commence at that time.
No depreciation is provided on freehold land.
Assets held under finance lease are depreciated over their expected useful lives on the same basis as owned assets or, where shorter,
the term of the relevant lease.
The residual values, useful lives and depreciation method of property, plant and equipment are reviewed at the end of each financial
year to ensure that the residual values, period of depreciation and depreciation method are consistent with previous estimates and
the expected pattern of consumption of future economic benefits embodied in the items of property, plant and equipment.
The gain or loss arising on disposal or retirement of an item of property, plant and equipment is determined as the difference between
the sales proceeds and the carrying amount of the asset and is recognised in the consolidated statement of comprehensive income.
Fully depreciated property, plant and equipment are retained in the financial statements until they are no longer in use.

Etika Annual Report 201268
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
2. Summary of significant accounting policies (Continued)
2.5 Intangible assets
(i) Goodwill
Goodwill arising on the acquisition on subsidiary represents the excess of the cost of acquisition over the Group’s interest in
the net fair value of identifiable assets, liabilities and contingent liabilities of the subsidiary at the date of acquisition. Goodwill is
initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses.
On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of gain or loss on disposal.
(ii) Patents and trademarks
Patents and trademarks acquired by the Group have indefinite useful lives and are initially measured at cost less any accumulated
impairment loss.
(iii) Product licenses
Product licenses are stated at cost less accumulated amortisation and impairment loss, if any. The useful life of the product
licenses is 5 years, representing the period that benefits are expected to be received.
(iv) Computer software
Acquired computer software licenses are initially capitalised at cost which includes the purchase price (net of any discounts and
rebates) and other directly attributable costs of preparing the software for its intended use. Direct expenditure which enhances
or extends the performance of computer software beyond its specifications and which can be reliably measured is added to the
original costs of the software. Costs associated with maintaining computer software are recognised as an expense as incurred.
Computer software licenses are subsequently carried at cost less accumulated amortisation and accumulated impairment losses,
if any. These costs are amortised to the consolidated statement of comprehensive income using the straight-line method over
their estimated useful lives of 5 years.
(v) Franchise fees
Franchise fees are initially capitalised at cost and subsequently measured at cost less accumulated amortisation and any
accumulated impairment losses. Amortisation is calculated using the straight line method to allocate the cost over their estimated
useful lives of 10 years.
(vi) Intangible assets acquired in a business combination
Intangible assets acquired in a business combination are identified and recognised separately from goodwill if the assets and their
fair values can be measured reliably. The cost of such intangible assets is their fair value as at the acquisition date. Subsequent to
initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortisation and
accumulated impairment losses, on the same basis as intangible assets acquired separately.
The amortisation period and amortisation method of intangible assets other than goodwill are reviewed at least at the end of each
financial year. The effects of any revision are recognised in the consolidated statement of comprehensive income when the changes
arise.

Etika Annual Report 201269
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
2. Summary of significant accounting policies (Continued)
2.6 Impairment of non-financial assets
Non-financial assets other than goodwill
The carrying amounts of the Group’s and the Company’s non-financial assets are reviewed at the end of each financial year to
determine whether there is any indication of impairment loss and whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. If any such indication exists, or when annual impairment testing for an asset (intangible
assets with indefinite useful life and intangible assets not yet available for use) is required, the recoverable amounts are estimated.
An impairment loss is recognised whenever the carrying amount of the asset or its cash-generating unit exceeds its recoverable
amount. A cash-generating unit is the smallest identifiable asset group that generates cash flows that are largely independent of other
assets and groups of assets. Impairment loss is recognised in the consolidated statement of comprehensive income unless it reverses
a previous revaluation, credited to equity, in which case it is charged to equity.
The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs to sell and its value in use. Recoverable
amount is determined for individual asset, unless the asset does not generate cash inflows that are largely independent of those from
other assets or groups of assets. The fair value less cost to sell is the amount obtainable from the sale of an asset or cash-generating
unit in an arm’s length transaction between knowledgeable, willing parties, less costs of disposal. Value in use is the present value of
estimated future cash flows expected to be derived from the continuing use of an asset and from its disposal at the end of its useful
life, discounted at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the asset
or cash-generating unit for which the future cash flow estimates have not been adjusted.
An assessment is made at the end of each financial year as to whether there is any indication that an impairment loss recognised in
prior periods for an asset may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. An
impairment loss recognised in prior periods is reversed if there has been a change in the estimates used to determine the recoverable
amount since the last impairment in value was recognised. An impairment loss is reversed only to the extent that the asset’s carrying
amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment
loss has been recognised. Reversals of impairment loss are recognised in the consolidated statement of comprehensive income
unless the asset is carried at revalued amount, in which case the reversal in excess of impairment loss recognised in the consolidated
statement of comprehensive income in prior periods is treated as a revaluation increase. After such a reversal, the depreciation or
amortisation is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis
over its remaining useful life.
Goodwill
Goodwill is tested annually for impairment, as well as when there is any indication that the goodwill may be impaired.
For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating unit expected to benefit from the
synergies of the business combination. If the recoverable amount of the cash-generating unit is less than the carrying amount of the
unit including the goodwill, the impairment loss is recognised in the consolidated statement of comprehensive income and allocated
first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit on a pro-rata on the
basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not reversed in a subsequent
period.

Etika Annual Report 201270
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
2. Summary of significant accounting policies (Continued)
2.7 Inventories
Inventories are stated at the lower of cost and net realisable value.
Cost of raw materials and packing materials are determined on the “first-in, first-out” basis and comprise original cost of purchase and
other costs incurred in bringing the inventories to their present location and condition. Cost of finished goods and work-in-progress
includes cost of raw materials, direct labour, other direct costs and manufacturing overheads (based on normal operating capacity)
but excludes borrowing cost.
Net realisable value is the estimated selling price at which the inventories can be realised in the normal course of business after
allowing for the costs of realisation. Allowance is made for obsolete, slow-moving and defective inventories.
2.8 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, bank overdrafts and other short-term highly liquid
investments which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.
2.9 Financial assets
All financial assets are recognised on a trade date where the purchase of a financial asset is under a contract whose terms require
delivery of the financial asset within the timeframe established by the market concerned, and are initially measured at fair value, plus
transaction costs, except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair
value. After initial recognition, loans and receivables are carried at amortised cost using the effective interest method, less impairment
loss, if any.
The Group and the Company classify their financial assets as loans and receivables and available-for-sale financial assets. The
classification depends on the purpose of which the assets were acquired. Management determines the classification of the financial
assets at initial recognition and re-evaluates this designation at the end of the financial year where allowed and appropriate.
(i) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market. Loans and receivables are classified within “trade and other receivables”, “fixed deposits” and “cash and bank balances” on
the statements of financial position.
(ii) Available-for-sale financial assets
These assets are non-derivative financial assets that are either designated in this category or not included in other categories
of financial assets, and comprise the Group’s strategic investments in entities not qualifying as subsidiaries, associates or jointly
controlled entities.
Derecognition
Financial assets are derecognised when the contractual rights to receive cash flows from the financial assets have expired or have been
transferred and the Group and the Company have transferred substantially all risks and rewards of ownership.
On sale of a financial asset, the difference between the carrying amount and the sale proceeds is recognised in the consolidated
statement of comprehensive income. Where the sale relates to an available -for-sale financial asset, the cumulative gain or loss
previously recognised in the fair value reserve is included in the consolidated statement of comprehensive income for the period.

Etika Annual Report 201271
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
2. Summary of significant accounting policies (Continued)
2.9 Financial assets (Continued)
Effective interest method
The effective interest method is a method of calculating the amortised cost of a financial instrument and of allocating interest income
or expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts or
payments (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and
other premiums or discounts) through the expected life of the financial instrument, or where appropriate, a shorter period. Income
and expense are recognised on an effective interest basis for debt instruments other than those financial instruments “at fair value
through profit or loss”.
Impairment
The Group and the Company assess at the end of each financial year whether there is objective evidence that a financial asset or a
group of financial assets is impaired and recognise as allowance for impairment when such evidence exists.
(i) Loans and receivables
An allowance for impairment of loans and receivables is recognised when there is objective evidence that the Group and the
Company will not be able to collect all amounts due according to the original terms of the receivables. The amount of allowance
is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the
original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account. The amount
of the loss is recognised in the consolidated statement of comprehensive income.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event
occurring after the impairment was recognised, the previously recognised impairment loss shall be reversed either directly or by
adjusting an allowance account. Any subsequent reversal of an impairment loss is recognised in the consolidated statement of
comprehensive income, to the extent that the carrying amount of the asset does not exceed its amortised cost at the reversal
date.
(ii) Available-for-sale financial assets
If an available-for-sale financial asset is impaired, an amount comprising the difference between its cost (net of any principal
repayment and amortisation) and its current fair value, less any impairment loss previously recognised in the consolidated
statement of comprehensive income, is transferred from other comprehensive income to the consolidated statement of
comprehensive income. Reversal of impairment loss in respect of equity instruments classified as available-for-sale is recognised
through equity. Reversal of impairment loss on debt instruments is recognised in the consolidated statement of comprehensive
income if the increase in fair value of the instrument can be objectively related to an event occurring after the impairment loss
was recognised in the consolidated statement of comprehensive income.

Etika Annual Report 201272
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
2. Summary of significant accounting policies (Continued)
2.10 Financial liabilities
The accounting policies adopted for specific financial liabilities are set out below:
(i) Trade and other payables
Trade and other payables are recognised initially at cost which represents the fair value of the consideration to be paid in the
future less transaction cost, for goods received or services rendered, whether or not billed to the Group and the Company, and
are subsequently measured at amortised cost using the effective interest method.
Gains and losses are recognised in the consolidated statement of comprehensive income when the liabilities are derecognised
as well as through the amortisation process.
(ii) Financial guarantee contracts
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a
loss it incurs because a specified debtor fails to make payment when due.
Financial guarantees are recognised initially at fair value. Subsequent to initial recognition, financial guarantees are recognised
as income in the consolidated statement of comprehensive income over the period of the guarantee. If it is probable that the
liability will be higher than the amount initially recognised less amortisation, the liability is recorded at the higher amount with
the difference charged to the consolidated statement of comprehensive income.
(iii) Bank borrowings
Borrowings are initially recognised at the fair value, net of transaction costs incurred. Borrowings are subsequently stated at
amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is taken to the
consolidated statement of comprehensive income over the period of the borrowings using the effective interest method.
Borrowings which are due to be settled within 12 months after the end of the financial year are presented as current
borrowings even though the original term was for a period longer than 12 months and an agreement to refinance, or to
reschedule payments, on a long-term basis is completed after the end of the financial year and before the financial statements
are authorised for issue. Other borrowings due to be settled more than 12 months after the end of the financial year are
presented as non-current borrowings in the statements of financial position.
(iv) Foreign currency forward contracts
The Group enters into a variety of derivative financial instruments to manage its exposure to foreign exchange rate risk,
including foreign currency forward contracts.

Derivatives are initially recognised at their fair values at the date the derivative contract is entered into and are subsequently re-
measured to their fair values at the end of each financial year. Fair value changes are recognised in the consolidated statement
of comprehensive income when the changes arise.
Recognition and derecognition
Financial liabilities are recognised on the statements of financial position when, and only when, the Group and the Company
becomes a party to the contractual provisions of the financial instrument.
Financial liabilities are derecognised when the contractual obligation has been discharged or cancelled or expired.
On derecognition of a financial liability, the difference between the carrying amount and the consideration paid is recognised in the
consolidated statement of comprehensive income.

Etika Annual Report 201273
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
2. Summary of significant accounting policies (Continued)
2.11 Equity instruments and treasury shares
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its
liabilities. Ordinary shares are classified as equity instruments and are recorded at the proceeds received, net of direct issue costs.
When share capital recognised as equity is repurchased (“treasury shares”), the consideration paid including any directly attributable
incremental cost is presented as a deduction within equity, until they are subsequently cancelled, sold or reissued.
When the treasury shares are subsequently cancelled, the cost of the treasury shares are deducted against the share capital account
if the shares are purchased out of capital of the Company, or against the accumulated profits of the Company if the shares are
purchased out of profits of the Company.
When the treasury shares are subsequently sold or reissued pursuant to the employee share options scheme, the cost of treasury
shares is reversed from the treasury share account and the realised gain or loss on sale or reissue, net of any directly attributable
incremental transaction costs and related income tax, is recognised as a change in equity of the Company.
2.12 Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result of a past event and it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be
made of the amount of the obligation. Provisions are measured at the management’s best estimate of the expenditure required to
settle the obligation at the end of the financial year, and are discounted to present value where the effect is material. The expense
relating to any provision is recognised in the consolidated statement of comprehensive income.
2.13 Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable for the sale of goods and rendering of services in
the ordinary course of business of the Group and of the Company. Revenue is presented, net of discounts and sales related taxes.
The Group’s revenue is in respect of external transactions only.
Sale of goods
Revenue from sale of products is recognised when significant risks and rewards of ownership of goods have been transferred to the
buyer upon passage of title to the customers, which generally coincides with their delivery and acceptance.
Interest income
Interest income is recognised when earned, by reference to the principal outstanding and at the effective interest rate applicable,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s
carrying amount.
Rental income
Rental income under operating leases is recognised in the consolidated statement of comprehensive income on a straight-line
basis over the term of the lease.

Etika Annual Report 201274
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
2. Summary of significant accounting policies (Continued)
2.14 Research costs
Research costs are recognised as expenses when incurred.
2.15 Employment benefits
Defined contribution plan
Contributions to defined contribution plans are recognised as an expense in the consolidated statement of comprehensive income
in the same financial year as the employment that gives rise to the contributions.
Employee leave entitlement
Employee entitlements to annual leave are recognised when they accrue to employees. An accrual is made for the estimated
liability for unutilised annual leave as a result of services rendered by employees up to the end of the financial year.
2.16 Leases
When the Group or the Company is the lessee of a finance lease
Leases in which the Group and the Company assume substantially the risks and rewards of ownership are classified as finance
lease.
Upon initial recognition, property, plant and equipment acquired through finance leases are capitalised at the lower of its fair value
and the present value of the minimum lease payment. Any initial direct costs are also added to the amount capitalised.
Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset.
Lease payments are apportioned between finance charge and reduction of the lease liability. The finance charge is allocated to
each period during the lease term so as to achieve a constant periodic rate of interest on the remaining balance of the finance lease
liability. Finance charge is recognised in the consolidated statement of comprehensive income.
Capitalised leased asset is depreciated over the shorter of the estimated useful life of the asset and the lease term, if there is no
reasonable certainty that the Group and the Company will obtain ownership by the end of the finance lease term.
When the Group is the lessee of an operating lease
Leases of assets in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as
operating leases. Rentals payable under the lease (net of any incentives received from the lessor) are recognised in the consolidated
statement of comprehensive income on a straight-line basis over the period of the lease.
When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way
of penalty is recognised as an expense in the financial year in which termination takes place.
Prepaid operating leases
The Group leases property under operating leases and the leases run for a period of 25 to 84 years. The upfront lump-sum payments
made under the leases are amortised to the consolidated statement of comprehensive income on a straight-line basis over the term
of the leases. The amortisation amount is included in operating lease expenses.

Etika Annual Report 201275
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
2. Summary of significant accounting policies (Continued)
2.17 Borrowing costs
Borrowing costs are recognised in the consolidated statement of comprehensive income using the effective interest method
except for those costs that are directly attributable to the construction or the production of the qualifying assets.
Borrowing costs are capitalised as part of the cost of a qualifying asset if they are directly attributable to the acquisition, construction
or production of that asset. Capitalisation of borrowing costs commences when the activities to prepare the asset for its intended
use or sale are in progress and the expenditures and borrowing costs are incurred. Borrowing costs are capitalised until the assets
are substantially completed for their intended use or sale.
2.18 Income tax
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the consolidated
statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other years
and it further excludes items that are not taxable or tax deductible. The Group’s liability for current tax is calculated using tax rates
(and tax laws) that have been enacted or substantively enacted in countries where the Company and subsidiaries operate by the
end of the financial year.
Deferred tax is recognised on the differences between the carrying amounts of assets and liabilities in the financial statements
and the corresponding tax bases used in the computation of taxable profit, and are accounted for using the balance sheet liability
method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised
to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be
utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition
(other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the
accounting profit.
Deferred tax liabilities are recognised on taxable temporary differences arising on investments in subsidiaries, except where the
Group is able to control the reversal of the temporary differences and it is probable that the temporary difference will not reverse in
the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each financial year and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised
based on the tax rate (and tax laws) that have been enacted or substantively enacted by the end of the financial year. Deferred tax
is charged or credited to the consolidated statement of comprehensive income, except when it relates to items charged or credited
directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities
and the deferred taxes relate income taxes levied by the same taxation authority and the Group intends to settle the current tax
assets and liabilities on a net basis.
Current and deferred tax are recognised as an expense or income in the consolidated statement of comprehensive income, except
when they relate to items credited or debited directly to equity, in which case the tax is also recognised directly in equity, or where
they arise from the initial accounting for a business combination. In the case of a business combination, the tax effect is taken into
account in calculating goodwill or determining the excess of the acquirer’s interest in the net fair value of the acquiree’s identifiable
assets, liabilities and contingent liabilities over cost.

Etika Annual Report 201276
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
2. Summary of significant accounting policies (Continued)
2.18 Income tax (Continued)
Revenue, expenses and assets are recognised net of the amount of sales tax except:
(i) when the sales tax that is incurred on purchase of assets or services is not recoverable from the tax authorities, in which case
the sales tax is recognised as part of cost of acquisition of the asset or as part of the expense item as applicable; and
(ii) receivables and payables that are stated with the amount of sales tax included.
2.19 Foreign currency transactions and translations
In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s functional currency
(“foreign currencies”) are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each financial
year, monetary items denominated in foreign currencies are translated at the rates prevailing on that date. Non-monetary items
carried at fair value that are denominated in foreign currencies are translated at the rates prevailing on the date when the fair value
was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not re-translated.
Exchange differences arising on the settlements of monetary items and on re-translating of monetary items are included in the
consolidated statement of comprehensive income for the financial year. Exchange differences arising on the translation of non-
monetary items carried at fair value are included in the consolidated statement of comprehensive income for the financial year
except for differences arising on the re-translation of non-monetary items in respect of which gains and losses are recognised
directly in equity. For such non-monetary items, any exchange component of that gain or loss is also recognised directly in equity.
For the purposes of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations are
expressed in Ringgit Malaysia using exchange rates prevailing at the end of the financial year. Income and expense items are
translated at the average exchange rates for the financial year, unless exchange rates fluctuated significantly during that financial
year, in which case the exchange rates of the dates of the transactions are used. Exchange differences arising, if any, are classified
as equity and transferred to the Group’s foreign currency translation reserve. Such translation differences are recognised in the
consolidated statement of comprehensive income in the financial year in which the foreign operation is disposed of.
On consolidation, exchange differences arising from the translation of the net investment in foreign entities (including monetary
items that, in substance, form part of the net investment in foreign entities), and of borrowings and other currency instruments
designated as hedges of such investments, are taken to the foreign currency translation reserve.
Goodwill and fair value adjustments arising on acquisition of foreign operation are treated as assets and liabilities of the foreign
operation, and translated at the closing exchange rate.
2.20 Dividends
Equity dividends are recognised when they become legally payable. Interim dividends are recorded in the financial year in which
they are declared payable. Final dividends are recorded in the financial year in which the dividends are approved by the shareholders.
Dividends proposed or declared after the end of the financial year are not recognised as a liability at the end of the reporting
period.
2.21 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-
maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating
segments, has been identified as the group of executive directors and the chief executive officer who make strategic decisions.

Etika Annual Report 201277
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
2. Summary of significant accounting policies (Continued)
2.22 Share-based payment
The Group issues equity settled share based payments to certain employees and directors.
The fair value of the employee services received in exchange for the grant of options is recognised as an expense in consolidated
statement of comprehensive income with a corresponding increase in the share options reserve over the vesting period.
The total amount to be recognised over the vesting period is determined by reference to the fair value of the options granted on
the date of grant. In the valuation process, no account is taken of any performance conditions except of conditions linked to the
price of the shares of the Company (“market conditions”), if applicable.
The expense recognised in the consolidated statement of comprehensive income at each reporting date reflects the manner
in which the benefits will accrue to employees under the option plan over the vesting period. The consolidated statement of
comprehensive income charge or credit for a period represents the movement in cumulative expense recognised as at the
beginning and end of that period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market
condition, which are treated as vested irrespective of whether or not the market condition is satisfied, provided that all other
performance conditions are satisfied.
When the options are exercised and new ordinary shares issued, the proceeds received (net of any attributable transaction costs)
and the corresponding amount share options reserve are credited to share capital, or to the treasury shares account, when treasury
shares are reissued to employees.
Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been
modified. In addition, an expense is recognised for any modification, which increases the total fair value of the share-based payment
arrangement, or is otherwise beneficial to the employee as measured at the date of modification.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet
recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award, and designated
as a replacement award on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the
original award, as described in the previous paragraph.
2.23 Contingencies
A contingent liability is:
(i) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-
occurrence of one or more uncertain future events not wholly within the control of the Group; or
(ii) a present obligation that arises from past events but is not recognised because:
(a) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or
(b) the amount of the obligation cannot be measured with sufficient reliability.
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not wholly within the control of the Group.
Contingencies are not recognised on the statement of financial position of the Group, except for contingent liabilities assumed in a
business combination that are present obligations and which the fair value can be reliably determined.

Etika Annual Report 201278
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
3. Critical accounting judgements and key sources of estimation uncertainty
3.1 Critical judgements made in applying the accounting policies
In the process of applying the Group’s and Company’s accounting policies, the management is of the opinion that there are no
critical judgements involved that have a significant effect on the amounts recognised in the financial statements except as discussed
below.
(i) Impairment of investment in subsidiaries and financial assets
The Group and the Company follow the guidance of FRS 36 and FRS 39 in determining whether investments in subsidiaries or
financial assets are impaired. This determination requires the assumption made regarding the duration and extent to which the
fair value of an investment or a financial asset is less than its costs and the financial health of and near-term business outlook
for the investment or financial asset, including factors such as industry and sector performance, changes in technology and
operational and financing cash flow.
Management’s assessment for impairment of investment in subsidiaries is based on the estimation of value in use of the
cash-generating unit (“CGU”) by forecasting the expected future cash flows for a period of up to five years, using a suitable
discount rate in order to calculate the present value of those cash flows. The carrying amount of investment in subsidiaries at
30 September 2012 was approximately RM38,407,000 (2011: RM37,776,000).
(ii) Acquisition accounting
The Group accounts for the acquired businesses/companies using the acquisition method accounting which requires that
the assets acquired and liabilities assumed be recorded at the date of acquisition at their fair values. The application of the
acquisition method requires certain estimates and assumptions especially concerning the determination of the fair values
of the acquired intangible assets and property, plant and equipment, as well as the liabilities assumed at the date of the
acquisition. As part of this process, it is also necessary to identify and recognise certain assets and liabilities which are not
included on the acquiree’s statement of financial position, for example, the value of internally generated brands and other
intangible assets. Significant judgement is required in determining whether the intangible have indefinite or finite useful life
and in determining the useful life of finite intangible. The judgements made in the context of the purchase price allocation
can materially impact the Group’s future results of operations. Accordingly, the Group obtains assistance from independent
valuation specialists. These independent valuation specialists used highly subjective assumptions and estimates to determine
the valuation of the identified net assets of the acquired companies. These assumptions and estimates involve inherent
uncertainties and the application of judgements. As a result, if factors change and these independent valuation specialists use
different assumptions and estimates, the fair value of the identified net assets could be materially different. The valuations are
based on information available at the acquisition date.
In accordance with FRS 103 (Revised) Business Combinations, adjustments may be made to provisional values of identifiable
assets and liabilities as a result of ongoing due diligence or upon receipt of additional information. If these adjustments arise
within 12 months following the date of acquisition, they are recognised as a retrospective adjustment to the goodwill on the
acquisition. Once this 12-month period elapsed, the effect of any adjustments is recognised in the consolidated statement of
comprehensive income unless it involves the correction of an error which will then, be accounted for under FRS 8 Accounting
Policies, Changes in Accounting Estimates and Errors.

Etika Annual Report 201279
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
3. Critical accounting judgements and key sources of estimation uncertainty (Continued)
3.1 Critical judgements made in applying the accounting policies (Continued)
(iii) Patents and trademarks
Patents and trademarks are capitalised in accordance with the accounting policy in Note 2.5. Initial capitalisation of costs
is based on management’s judgement that the assets are separated from the entity, the entity controls the assets and it is
probable that expected future economic benefits of the assets will flow to the entity. The management has applied judgement
in determining the useful lives of patents and trademarks after having considered various factors such as competitive
environment, product life cycles, operating plans and the macroeconomic environment of the patents and trademarks. In
addition, management believes there is no foreseeable limit to the period over which the indefinite patents and trademarks
are expected to generate net cash inflows for the Group.
(iv) Determination of functional currency
The Group measures foreign currency transactions in the respective functional currencies of the Company and its subsidiaries.
In determining the functional currencies of the entities in the Group, judgement is required to determine the currency that
mainly influences sales prices for goods and services and of the country whose competitive forces and regulations mainly
determines the sales prices of its goods and services. The functional currencies of the entities in the Group are determined
based on management’s assessment of the economic environment in which the entities operate and the entities’ process of
determining sales prices.
3.2 Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the financial year, that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities and reported amounts of
revenue and expenses within the next financial year, are discussed below.
(i) Depreciation of property, plant and equipment
Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives. Management estimates
the useful lives of these assets to be within 3 to 50 years. The carrying amounts of the Group’s and the Company’s property,
plant and equipment as at 30 September 2012 were approximately RM308,559,000 and RM20,000 (2011: RM259,737,000 and
RM24,000). Changes in the expected level of usage and technological developments could impact the economic useful lives
and residual values of these assets. Therefore, future depreciation charges could be revised.
(ii) Income taxes
The management has exercised significant judgement when determining the Group’s and the Company’s provisions for
income taxes. These involve assessing the probabilities that deferred tax assets resulting from deductible temporary differences,
unutilised tax losses and unabsorbed tax allowances, if any, can be utilised to offset future taxable income. There are certain
transactions and computations for which the ultimate tax determination is uncertain during the ordinary course of action.
Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable
income.
Given the wide range of international business arrangements, the long-term nature and complexity of existing contractual
agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions,
could necessitate adjustments to tax income and expense in future periods. The Group and the Company establish reasonable
provision for possible consequences of audits by the tax authorities of the respective countries. The amount of such provisions
and/or its subsequent reversals is based on various factors, such as experience of previous tax audits and differing interpretations
of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide
variety of issues depending on the conditions prevailing in the respective Group and Company domicile. The carrying amount
of income tax payable for Group and Company as at 30 September 2012 were approximately RM3,790,000 and nil (2011:
RM1,627,000 and nil) and the carrying amount of deferred tax assets, tax recoverable and deferred tax liabilities for Group as at
30 September 2012 are as disclosed in the statement of financial position.

Etika Annual Report 201280
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
3. Critical accounting judgements and key sources of estimation uncertainty (Continued)
3.2 Key sources of estimation uncertainty (Continued)
(iii) Impairment of goodwill and patents and trademarks
The management determines whether goodwill and patents and trademarks are impaired at least on an annual basis and as
and when there is an indication that goodwill and patents and trademarks may be impaired. This requires an estimation of
the value in use of patents and trademarks and the cash-generating units to which the goodwill is allocated. Estimating the
value in use requires the Group to make an estimate of the expected future cash flows from the cash-generating unit and
also to choose a suitable discount rate in order to calculate the present value of those cash flows. The carrying amounts of
goodwill and patents and trademarks as at 30 September 2012 were approximately RM59,741,000 and RM50,512,000 (2011:
RM59,446,000 and RM50,512,000), respectively. More details on the impairment testing of goodwill and patents and trademarks
are disclosed in Note 9 to the financial statements.
(iv) Allowance for doubtful receivables
The management establishes allowance for doubtful receivables on a case-by-case basis when they believe that payment
of amounts owed is unlikely to occur. In establishing these allowances, the management considers its historical experience
and changes to its customers’ financial position. If the financial conditions of receivables were to deteriorate, resulting in
impairment of their abilities to make the required payments, additional allowances may be required. The carrying amounts of
the Group’s and the Company’s trade and other receivables as at 30 September 2012 were approximately RM156,861,000 and
RM96,227,000 (2011: RM156,214,000 and RM90,470,000), respectively.
(v) Inventories and related allowance
Inventories are stated at the lower of cost and net realisable value. The management primarily determines cost of inventories
using the “first-in, first-out” method. The management estimates the net realisable value of inventories based on assessment of
receipt or committed sales prices and provide for excess and obsolete inventories based on historical usage, estimated future
demand and related pricing. In determining excess quantities, the management considers recent sales activities, related margin
and market positioning of its products. However, factors beyond its control, such as demand levels, technological advances
and pricing competition, could change from period to period. Such factors may require the Group to reduce the value of
its inventories. The carrying amount of the Group’s inventories as at 30 September 2012 was approximately RM132,072,000
(RM147,008,000).
(vi) Equity-settled share-based payments
The charge for equity-settled share-based payments is calculated in accordance with estimates and assumptions which
are described in Note 20 to the financial statements. The Binomial option-pricing model used requires highly subjective
assumptions to be made including the future volatility of the Company’s share price, expected dividend yields and risk-free
interest rates. The management draws upon a variety of external sources to aid them in the determination of the appropriate
data to use in such calculations. The carrying amounts of share options reserve for the Group and the Company as at 30
September 2012 were approximately RM9,507,000 and RM9,507,000 (2011: RM5,259,000 and RM5,259,000), respectively.
(vii) Deferred tax assets
Deferred tax assets are recognised to the extent that it is probable that the taxable profit will be available against which
deferred tax assets recognised can be utilised. Management’s judgement is required to determine the amount of deferred tax
assets that can be recognised, based upon the likely timing and level of future tax planning strategies. The carrying amount of
the Group’s deferred tax assets as at 30 September 2012 was approximately RM12,789,000 (2011: RM14,892,000). Management
is of the view that these deferred tax assets are considered to be fully recoverable based on anticipated future profitability of
the Group.

Etika Annual Report 201281
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
4. Property, plant and equipment Cold room Furniture Assets
Freehold Factory Plant and and Lab and Motor Office Computer under
land buildings machinery freezer equipment fittings Renovation vehicles equipment system construction Total
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Cost
Balance at 1 October 2011 38,083 62,215 154,405 1,148 892 3,445 1,748 13,192 3,814 1,713 32,098 312,753
Additions 1,520 3,186 19,989 1,746 135 655 351 3,920 480 198 43,218 75,398
Currency realignment - (965) (2,800) - 1 (33) (35) (68) (186) 63 (253) (4,276)
Reclassification - 4,070 11,949 1,120 - 35 - 165 2 - (17,341) -
Transfer to intangible assets - - - - - - - - - (12) - (12)
Disposals - - (703) (13) - (6) - (1,706) (67) - - (2,495)
Written off - - (162) (222) - (752) - (161) (81) - - (1,378)
Balance at 30 September 2012 39,603 68,506 182,678 3,779 1,028 3,344 2,064 15,342 3,962 1,962 57,722 379,990
Accumulated depreciation
Balance at 1 October 2011 - 5,835 37,046 623 683 1,347 481 4,686 1,305 1,010 - 53,016
Depreciation for the financial
year - 2,309 14,321 378 216 516 205 3,360 594 162 - 22,061
Currency realignment - (67) (99) - (1) (5) (8) (9) (52) 29 - (212)
Transfer to intangible assets - - - - - - - - - (3) - (3)
Disposals - - (463) (5) - (3) - (1,656) (23) - - (2,150)
Written off - - (69) (222) - (751) - (161) (78) - - (1,281)
Balance at 30 September 2012 - 8,077 50,736 774 898 1,104 678 6,220 1,746 1,198 - 71,431
Carrying amount
Balance at 30 September 2012 39,603 60,429 131,942 3,005 130 2,240 1,386 9,122 2,216 764 57,722 308,559

Etika Annual Report 201282
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
4. Property, plant and equipment (Continued) Cold room Furniture Assets
Freehold Factory Plant and and Lab and Motor Office Computer under
land buildings machinery freezer equipment fittings Renovation vehicles equipment system construction Total
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Cost
Balance at 1 October 2010 38,083 52,065 117,459 508 715 1,540 1,120 7,191 1,339 1,600 3,704 225,324
Additions - 1,286 11,760 96 112 774 579 4,066 647 76 28,879 48,275
Acquisition of subsidiaries - 9,737 24,041 550 - 1,215 - 4,069 1,561 - - 41,173
Currency realignment - (32) 690 - - 32 3 (17) (4) 54 (44) 682
Currency realignment due to
acquisition of subsidiaries - 108 201 - - - - (1) 41 - - 349
Reclassification - (949) 756 - 65 (2) 55 45 455 - (425) -
Transfer to intangible assets - - - - - - - - (177) - - (177)
Disposals - - (28) (6) - (19) (9) (2,161) (21) (17) - (2,261)
Written off - - (474) - - (95) - - (27) - (16) (612)
Balance at 30 September 2011 38,083 62,215 154,405 1,148 892 3,445 1,748 13,192 3,814 1,713 32,098 312,753
Accumulated depreciation
Balance at 1 October 2010 - 3,653 24,527 89 519 891 327 3,381 743 843 - 34,973
Depreciation for the financial
year - 2,207 13,048 537 160 527 116 3,253 588 134 - 20,570
Currency realignment - (25) (329) - - 27 1 (7) (3) 39 - (297)
Reclassification - - (43) - 4 (1) 39 - 1 - - -
Disposals - - (28) (3) - (5) (2) (1,941) (8) (6) - (1,993)
Written off - - (129) - - (92) - - (16) - - (237)
Balance at 30 September 2011 - 5,835 37,046 623 683 1,347 481 4,686 1,305 1,010 - 53,016
Carrying amount
Balance at 30 September 2011 38,083 56,380 117,359 525 209 2,098 1,267 8,506 2,509 703 32,098 259,737

Etika Annual Report 201283
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
4. Property, plant and equipment (Continued)
Computer
Company system
2012 RM’000
Cost
Balance at 1 October 2011 119
Additions 8
Balance at 30 September 2012 127

Accumulated depreciation
Balance at 1 October 2011 95
Currency realignment (1)
Depreciation for the financial year 13
Balance at 30 September 2012 107
Carrying amount
Balance at 30 September 2012 20
2011
Cost
Balance at 1 October 2010 106
Additions 13
Balance at 30 September 2011 119

Accumulated depreciation
Balance at 1 October 2010 80
Currency realignment (1)
Depreciation for the financial year 16
Balance at 30 September 2011 95
Carrying amount
Balance at 30 September 2011 24
During the financial year, the Group acquired property, plant and equipment as follows:
2012 2011
RM’000 RM’000
Additions of property, plant and equipment 75,398 48,275
Acquired under finance lease (3,401) (7,713)
Cash payments made to acquire property, plant and equipment 71,997 40,562
Property, plant and equipment of the Group with a carrying amount of approximately RM125,362,000 (2011: RM136,839,000) have been
pledged to financial institutions for banking facilities granted to certain subsidiaries as disclosed in Note 15 to the financial statements.

Etika Annual Report 201284
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
4. Property, plant and equipment (Continued)
Included in property, plant and equipment are the following assets acquired under finance lease arrangements:
Group
2012 2011
RM’000 RM’000
Carrying amount
Plant and machinery 581 1,968
Motor vehicles 7,966 7,315
Office and factory equipment 230 322
8,777 9,605
Assets under construction represent costs of the assets work-in-progress. Included in the additions are borrowing costs capitalised of
RM940,000 (2011: RM645,000).
As at 30 September 2012, information relating to the Group’s freehold properties are as follows:
Gross land Gross floor
area area
Location Description Existing use (sq ft) (sq ft)
Dairies division
Lot LS-1, Persiaran Satu, Meru Industrial Park, Industrial land Factory building 348,916 197,500
Persiaran Hamzah Alang, 42200 Klang,
Selangor Darul Ehsan, Malaysia
Lot LS-2, Persiaran Satu, Meru Industrial Park, Industrial land Factory building 174,458 180,562
Persiaran Hamzah Alang, 42200 Klang,
Selangor Darul Ehsan, Malaysia
Lot LS-3, Persiaran Satu, Meru Industrial Park, Industrial land Factory building 173,143 118,650
Persiaran Hamzah Alang, 42200 Klang,
Selangor Darul Ehsan, Malaysia
Lot LS-5, Persiaran Satu, Meru Industrial Park, Industrial land Vacant 131,654 -
Persiaran Hamzah Alang, 42200 Klang,
Selangor Darul Ehsan, Malaysia
Lot LS-6, Persiaran Satu, Meru Industrial Park, Industrial land Vacant 172,773 -
Persiaran Hamzah Alang, 42200 Klang,
Selangor Darul Ehsan, Malaysia
Lot 1, Mukim Kapar, 42200 Klang, Industrial land Vacant 100,788 -
Selangor Darul Ehsan, Malaysia
Lot 2, Mukim Kapar, 42200 Klang, Industrial land Vacant 100,913 -
Selangor Darul Ehsan, Malaysia

Etika Annual Report 201285
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
4. Property, plant and equipment (Continued)
Gross land Gross floor
area area
Location Description Existing use (sq ft) (sq ft)
Trading and Frozen Food Division
Lot 55, Hicom Glenmarie Industrial Park, Warehouse Office, warehouse, 68,674 43,200
Selangor, Malaysia cold room and
processing factory
Lot 1-3-1, Sri Kerjaya Apartment, Apartment Staff quarters - 883
Shah Alam, Selangor, Malaysia
Lot 1-3-3, Sri Kerjaya Apartment, Apartment Staff quarters - 893
Shah Alam, Selangor, Malaysia
49, Lorong Wong Ah Jang, Kuantan, Shop office Cold room/Office 1,560 2,976
Pahang, Malaysia
Lot 1237 & 1238, Jalan Makloom, Penang, Malaysia Industrial land Office, warehouse, 12,202 16,860
and cold room
3, Jalan Bertam 6, Taman Daya, Industrial Cold room/Office 2,400 3,300
81100 Johor Bahru, Johor, Malaysia warehouse
1, Jalan Bertam 6, Taman Daya, Industrial Cold room 4,690 3,200
81100 Johor Bahru, Johor, Malaysia warehouse
7, Jalan Bertam 6, Taman Daya, Industrial Cold room 2,400 2,400
81100 Johor Bahru, Johor, Malaysia warehouse
Intersection of Jalan Bertam 2 & Jalan Bertam 5, Industrial land Vacant 16,878 -
Taman Daya, 81100 Johor Bahru, Johor, Malaysia
Others Divisions
Lot 17225, Jalan Haruan 6, Oakland Industrial Park, Industrial land Factory building 64,810 29,550
70200 Seremban, Negeri Sembilan, Malaysia
PT 4974, Jalan Haruan 8, Oakland Industrial Park, Industrial land Factory building 53,346 36,258
70200 Seremban, Negeri Sembilan, Malaysia

Etika Annual Report 201286
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
5. Prepaid lease payment for land
Group
2012 2011
RM’000 RM’000
Cost
Balance at 1 October 21,576 7,209
Acquisition of subsidiaries - 14,232
Addition 11,372 -
Currency realignment (406) 135
Balance at 30 September 32,542 21,576
Accumulated amortisation
Balance at 1 October 545 309
Amortisation for the financial year 359 235
Currency realignment (1) 1
Balance at 30 September 903 545
Carrying amount
Balance at 30 September 31,639 21,031
Prepaid lease payment for land comprises upfront lump-sum payments made for long-term leasehold land.
Prepaid lease payment for land of the Group with a carrying amount of approximately RM12,780,000 (2011: RM13,483,000) have been
pledged to financial institutions for banking facilities granted to certain subsidiaries as disclosed in Note 15 to the financial statements.
As at 30 September 2012, information relating to the Group’s leasehold properties are as follows:
Gross land Gross floor
area area
Location Description Existing use (sq ft) (sq ft)
Dairies division
Lot 204531, Mukim Hulu Kinta, Industrial land Detached factory 7,363 5,396
Daerah Kinta, Perak, Malaysia
Lot 31, Jalan 213, Section 51, Industrial land Industrial cum 22,596 28,602
460505 Petaling Jaya, office building
Selangor Darul Ehsan, Malaysia
PLO 169, Jalan Angkasa Mas 3, Industrial land Factory and 43,561 33,070
Kawasan Perindustrian Tebrau II, office building
81100 Johor Bahru, Johor, Malaysia
Hamlet 12, Tan Thanh Dong Commune, Industrial land Factory building 99,082 75,202
Cu Chi District, Ho Chi Minh City, Vietnam
8 VSIP II-A, Street 19, Industrial land Vacant 861,123 -
Vietnam-Singapore Industrial Park II A,
Tan Uyen District, Binh Duong Province, Vietnam

Etika Annual Report 201287
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
5. Prepaid lease payment for land (Continued)
Gross land Gross floor
area area
Location Description Existing use (sq ft) (sq ft)
Others Divisions
Lot 3, Jalan 203, 74, Seksyen 20, Petaling Jaya, Industrial land Factory building 51,727 38,400
Selangor Darul Ehsan, Malaysia
Jalan Industri, District of Klari, City of Karawang, Industrial land Factory building 515,376 125,378
Province of West Java, Indonesia
Jalan Raya Gunung Gangsir, KM 4.5, Industrial land Factory building 379,858 82,290
Sub District of Randupitu,
District of Gempol, City of Pasuruan,
Province of East Java, Indonesia
6. Investments in subsidiaries
6.1 Investments in subsidiaries comprise:
Company
2012 2011
RM’000 RM’000
Unquoted equity shares in corporations, at cost 27,491 27,491
Issuance of financial guarantee contracts 7,997 7,997
Issuance of share options to Group’s employees 2,919 2,288
38,407 37,776
6.2 Particulars of subsidiaries
Effective equity
held by the Group
Name of company 2012 2011
(Country of incorporation/operation) Principal activities % %
Held by the Company
Etika Beverages Sdn Bhd
(2)
Manufacturing and distribution
(Malaysia) of beverage products 100 100
Etika Brands Pte Ltd
(1)
Collecting royalties for the
(Singapore) brands that it owns 100 100
Etika Capital (Labuan) Inc
(2)
Intra-group lending and
(Malaysia) investment holding 100 100

Etika Annual Report 201288
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
6. Investments in subsidiaries (Continued)
6.2 Particulars of subsidiaries (Continued)
Effective equity
held by the Group
Name of company 2012 2011
(Country of incorporation/operation) Principal activities % %
Held by the Company (Continued)
Etika Dairies Sdn Bhd
(2)
Manufacturing of dairy products 100 100
(Malaysia)
Etika Foods International Inc
(2)
Dormant 100 100
(Malaysia)
Etika Foods (M) Sdn Bhd
(2)
Investment holding 100 100
(Malaysia)

Etika Foods Marketing Sdn Bhd
(2)
Distribution of dairy products 100 100
(Malaysia) (local market)
Etika Foods (Singapore) Pte Ltd
(1)
Investment holding 100 100
(Singapore)

Etika Global Resources Sdn Bhd
(2)
Distribution of dairy products 100 100
(Malaysia) (export market)
Etika Industries Holdings Sdn Bhd
(2)
Investment holding 100 100
(Malaysia)
Etika IT Services Sdn Bhd
(2)
IT service 100 100
(Malaysia)
Etika (NZ) Limited
(3)
Investment holding 100 100
(New Zealand)

Etika Vixumilk Pte Ltd
(1)
Investment holding 100 100
(Singapore)
Eureka Capital Sdn Bhd
(2)
Dormant 100 100
(Malaysia)
Golden Difference Sdn Bhd
(2)
Investment holding 100 100
(Malaysia)
Platinum Appreciation Sdn Bhd
(2)
Investment holding 100 100
(Malaysia)
PT Etika Indonesia
(4)
Investment holding 100 100
(Indonesia)
PT Etika Marketing
(4)
Investment holding 100 100
(Indonesia)

Etika Annual Report 201289
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
6. Investments in subsidiaries (Continued)
6.2 Particulars of subsidiaries (Continued)
Effective equity
held by the Group
Name of company 2012 2011
(Country of incorporation/operation) Principal activities % %
Held by subsidiaries
- Etika Capital (Labuan) Inc
PT Sentrafood Indonusa
(4) (5)
Manufacturing and distribution 100 100
(Indonesia) of instant noodle
- Etika Foods (M) Sdn Bhd
Daily Fresh Bakery Sdn Bhd
(2)
Trading of cakes, breads, biscuits 100 100
(Malaysia) and confectioneries
Family Bakery Sdn Bhd
(2)
Manufacturing and trading of cakes, 100 100
(Malaysia) breads, biscuits and confectioneries
Hot Bun Food Industries Sdn Bhd
(2)
Dormant 100 100
(Malaysia)
Pok Brothers Sdn Bhd
(2)
Wholesalers of foodstuff, provision 100 100
(Malaysia) and frozen meat
- Etika Industries Holdings Sdn Bhd
General Packaging Sdn Bhd
(2)
Manufacturing and distribution of tin cans 99 99
(Malaysia)
- Etika (NZ) Limited
Etika Dairies NZ Limited
(3)
Manufacture of dairies and water 60.7 60.7
(New Zealand) based products

Naturalac Nutrition Limited
(3)
Marketing of branded sport nutrition and 100 100
(New Zealand) weight management foods
Naturalac Nutrition (UK) Limited
(6)
Dormant 100 100
(United Kingdom)
- Etika Vixumilk Pte Ltd
Tan Viet Xuan Joint Stock Company
(7)
Manufacturing and distribution of 100 100
(Vietnam) dairy products

Etika Annual Report 201290
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
6. Investments in subsidiaries (Continued)
6.2 Particulars of subsidiaries (Continued)
Effective equity
held by the Group
Name of company 2012 2011
(Country of incorporation/operation) Principal activities % %
Held by subsidiaries (Continued)
- Golden Difference Sdn Bhd
Susu Lembu Asli (Johore) Sdn Bhd
(2)
Processing and distribution of pasteurised 100 100
(Malaysia) milk and related products
Susu Lembu Asli Marketing Sdn Bhd
(2)
Distribution and marketing of pasteurised 100 100
(Malaysia) milk and related products
Etika Consumer Sdn Bhd
(2)
Trading and distribution of fast moving 100 -
(Malaysia) consumer goods
- Pok Brothers Sdn Bhd
De-luxe Food Services Sdn Bhd
(2)
Manufacturing of convenient value 100 100
(Malaysia) added frozen food

Pok Brothers (Johor) Sdn Bhd
(2)
Wholesalers of foodstuff, provision 81.3 81.3
(Malaysia) and frozen meat
Pok Brothers (Pahang) Sdn Bhd
(8)
Dormant 100 100
(Malaysia)
Pok Brothers (Penang) Sdn Bhd
(8)
Dormant 100 100
(Malaysia)
Pok Brothers (Selangor) Sdn Bhd
(2)
Dormant 100 100
(Malaysia)
- PT Etika Marketing
PT Vixon Indonesia
(3)
Wholesale and distribution of imported 100 100
(Indonesia) foods and beverages
- PT Etika Indonesia
PT Sentraboga Intiselera
(4) (9)
Leasing of land to a related company 100 100
(Indonesia)
- Etika Foods (Singapore) Pte Ltd
Etika Foods (Vietnam) Co Ltd
(7)
Dormant 100 -
(Vietnam)
- Platinum Appreciation Sdn Bhd
Texas Chicken (Malaysia) Sdn Bhd
(2)
Quick service restaurant 100 -
(formerly known as Elite Cafe Sdn Bhd)
(Malaysia)

Etika Annual Report 201291
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
6. Investments in subsidiaries (Continued)
6.2 Particulars of subsidiaries (Continued)
(1)
Audited by BDO LLP, Singapore, a member firm of BDO International Limited.
(2)
Audited by BDO, Malaysia, a member firm of BDO International Limited.
(3)
Audited by BDO New Zealand Limited, a member firm of BDO International Limited.
(4)
Audited by KAP Tanubrata Sutanto Fahmi & Rekan, Indonesia, a member firm of BDO International Limited.
(5)
Etika Capital (Labuan) Inc, PT Etika Indonesia and PT Etika Marketing hold 68%, 31% and 1% respectively.
(6)
Exempted from audit under Section 480 of the Companies Act 2006 (United Kingdom) relating to dormant company.
(7)
Audited by BDO Audit Services Company Limited, a member firm of BDO International Limited.
(8)
Not required for audit as the companies are in the process of striking-off.
(9)
PT Etika Indonesia, Etika Capital (Labuan) Inc and PT Etika Marketing hold 56%, 43% and 1% respectively.
6.3 Incorporation and acquisition of subsidiaries in financial year 2012
(i) On 1 December 2011, Etika Foods (Vietnam) Co., Ltd was incorporated with a charter capital of VND81,655,200,000 (equivalent to
RM11,643,000).
In line with the Group’s expansion strategy and to enhance the market presence regionally, a manufacturing plant will be set-up
in Vietnam Singapore Industrial Park II-A, to increase the production capacity to meet both local and export demand.
(ii) On 6 January 2012, the Group acquired 100% equity interest in Etika Consumer Sdn Bhd (“ECSB”), a dormant entity, for a cash
consideration of RM2.
ECSB has taken over the business operation of sale of consumer goods from a related company with effect from 1 May 2012.
(iii) On 25 April 2012, the Group acquired 100% equity interest in Elite Cafe Sdn Bhd, a dormant entity, now known as Texas Chicken
(Malaysia) Sdn Bhd (“TCMSB”) for a cash consideration of RM2.
TCMSB has entered into an International Multiple Unit Franchise Agreement with US-based Cajun Global LLC to develop and
operate “Texas Chicken” restaurants over the next 10 years.
This downstream expansion in high-quality and well known fast-food chain is aimed at tapping on the synergistic opportunities
of the Group’s existing frozen food and beverage products.
6.4 Dissolution of subsidiaries in financial year 2012
On 20 June 2012, the Group has submitted an application to strike-off Pok Brothers (Pahang) Sdn Bhd and Pok Brothers
(Penang) Sdn Bhd.
These subsidiaries had ceased operation since 1 October 2006.

Etika Annual Report 201292
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
6. Investments in subsidiaries (Continued)
6.5 Acquisition of subsidiaries in financial year 2011
(i) Daily Fresh Bakery Sdn Bhd, Family Bakery Sdn Bhd and Hot Bun Food Industries Sdn Bhd (collectively known as “Family Group”)
On 1 October 2010, the Group acquired 100% equity interest in Family Group for a cash consideration of RM18,680,000. The
acquisition was accounted for using the acquisition method.
The resulted goodwill of RM2,020,000 is attributable to the anticipated profitability of the acquired business. It is expected to
provide synergistical benefits in view of the fundamental similarity with the Group’s existing bakery business.
The provisional carrying amounts and fair values of the identifiable assets and liabilities of Family Group as at the date of acquisition
were:
Fair value Carrying
recognised on amount before
acquisition combination
Net cash outflow from acquisition of Family Group RM’000 RM’000
Property, plant and equipment 6,268 5,387
Intangible assets 9,488 -
Trade and other receivables 4,537 4,537
Inventories 645 645
Cash and bank balances 4,114 4,114
Trade and other payables (4,330) (4,330)
Borrowings (3,164) (3,164)
Deferred tax liabilities (898) (678)
Net identifiable assets acquired 16,660 6,511
Goodwill arising on consolidation 2,020
Total purchase consideration 18,680
Less : Cash and bank balances acquired (4,114)
Net cash outflow from acquisition 14,566
There was no change in the initial fair values of the identifiable assets and liabilities of Family Group.
(ii) PT Sentraboga Intiselera and PT Sentrafood Indonusa (collectively known as “PT Sentra Group”)
On 6 October 2010, the Group acquired 70% of the equity interest in PT Sentra Group. On 4 July 2011, the Group completed
its 100% acquisition for a total purchase consideration of IDR78,000,010,000 equivalent to RM26,742,000. The acquisition was
accounted for using the acquisition method.
With the acquisition of PT Sentra Group, the Group ventured into the instant noodle business which signifies a new direction
for the Group’s business expansion plan and diversification of the Group’s existing range of product offerings. Additionally, it is
expected to provide benefits to the Group in terms of setting-up of condensed milk manufacturing facilities in Indonesia, where
production and distribution locally will help the Group to remain competitive in the condensed milk market.

Etika Annual Report 201293
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
6. Investments in subsidiaries (Continued)
6.5 Acquisition of subsidiaries in financial year 2011 (Continued)
(ii) PT Sentraboga Intiselera and PT Sentrafood Indonusa (collectively known as “PT Sentra Group”) (Continued)
The provisional carrying amounts and fair values of the identifiable assets and liabilities of PT Sentra Group as at the date of
acquisition were:
Fair value Carrying
recognised on amount before
acquisition combination
Net cash outflow from acquisition of PT Sentra Group RM’000 RM’000
Property, plant and equipment 19,107 10,162
Prepaid lease payment for land 8,269 3,475
Intangible assets 2,463 -
Deferred tax assets 10,070 17,170
Trade and other receivables 4,102 4,102
Inventories 1,953 1,953
Cash and bank balances 108 108
Trade and other payables (5,436) (66,171)
Borrowings - (18,435)
Deferred tax liabilities (3,435) -
Net identifiable assets acquired 37,201 (47,636)
Gain on bargain purchase (10,459)
Total purchase consideration 26,742
Less : Cash and bank balances acquired (108)
Less : Bank financing (18,435)
Net cash outflow from acquisition 8,199
There was no change in the initial fair values of the identifiable assets and liabilities of PT Sentra Group.
(iii) Susu Lembu Asli (Johore) Sdn Bhd and Susu Lembu Asli Marketing Sdn Bhd (collectively known as “Susu Lembu Group”)
On 4 January 2011, the Group acquired 100% equity interest in Susu Lembu Group for a cash consideration of RM87,110,000. The
acquisition was accounted for using the acquisition method.
The resulted goodwill of RM39,948,000 is attributable to the anticipated profitability of the acquired business by gaining a
foothold into the larger ready-to-drink dairy segment through a wider range of healthier products under established brands
which have gained wide market acceptance in Malaysia.

Etika Annual Report 201294
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
6. Investments in subsidiaries (Continued)
6.5 Acquisition of subsidiaries in financial year 2011 (Continued)
(iii) Susu Lembu Asli (Johore) Sdn Bhd and Susu Lembu Asli Marketing Sdn Bhd (collectively known as “Susu Lembu Group”)
(Continued)
The provisional carrying amounts and fair values of the identifiable assets and liabilities of Susu Lembu Group as at the date of
acquisition were:
Fair value Carrying
recognised on amount before
acquisition combination
Net cash outflow from acquisition of Susu Lembu Group RM’000 RM’000
Property, plant and equipment 15,798 3,121
Prepaid lease payment for land 5,963 1,965
Intangible assets 24,743 -
Trade and other receivables 17,233 17,234
Inventories 1,036 1,036
Deferred tax assets 250 250
Cash and bank balances 6,521 6,521
Tax recoverable 188 188
Trade and other payables (16,367) (16,367)
Borrowings (4,034) (4,034)
Deferred tax liability (4,169) -
Net identifiable assets acquired 47,162 9,914
Goodwill arising on consolidation 39,948
Total purchase consideration 87,110
Less : Cash and bank balances acquired (6,521)
Net cash outflow from acquisition 80,589
There was no change in the initial fair values of the identifiable assets and liabilities of Susu Lembu Group.
The following are the pertinent information in respect of the acquisitions in the financial year 2011:
Acquisition Acquisition Acquisition
of Family of PT Sentra of Susu
Group Group Lembu Group Total
RM’000 RM’000 RM’000 RM’000
Contributed revenue since acquisition 37,666 15,776 32,042 85,484
Contributed net profit/(loss) since acquisition 1,237 (7,467) 9,619 3,389
Goodwill on acquisition (Note 9) 2,020 - 39,948 41,968
Gain on bargain purchase rising from acquisition - (10,459) - (10,459)
Net cash outflow on acquisition 14,566 8,199 80,589 103,354
Acquisition transaction costs recognised
in “Administrative expenses” 60 269 133 462
Had these acquisitions been completed on 1 October 2010, the management is of the opinion that the revenue and net profit/(loss)
would not be significantly different from the contributed revenue and net profit as disclosed above.

Etika Annual Report 201295
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
6. Investments in subsidiaries (Continued)
6.6 Disposal of a subsidiary in financial year 2011
On 1 August 2011, the Group disposed its entire equity interest in a 70% owned subsidiary, Quality Wines Sdn Bhd (“QWSB”), a company
incorporated in Malaysia, which is engaged in trading of wines for a total disposal consideration of RM350,000.
The decision to dispose the subsidiary is in line with the intention of the Group to focus on the core business. The disposal was
completed on 1 August 2011.
The management did not expect any significant impact on the financial statements arising from the disposal.
The value of assets and liabilities of QWSB as at the date of disposal were:
Net cash flow effect of the disposal of QWSB RM’000
Property, plant and equipment 33
Inventories 1,032
Trade and other receivables 227
Cash and cash equivalents 72
Trade and other payables (843)
Deferred tax liabilities (2)
Net identifiable assets 519
Non-controlling interest (156)
Net identifiable assets disposed 363
Loss on disposal (13)
Total disposal consideration 350
Less: Cash and cash equivalents (72)
Less: Amount set-off against intangible assets purchased (278)
Net cash effect from disposal of a subsidiary -
7. Available-for-sale financial assets
Group
2012 2011
RM’000 RM’000
At fair value
Balance at 1 October 265 245
Fair value (loss)/gain recognised directly in other comprehensive income (30) 20
Balance at 30 September 235 265
Available-for-sale financial assets represent investments in quoted equity shares in Malaysia and are denominated in Ringgit Malaysia. It has
no fixed maturity date or coupon rate. The fair value is based on quoted market prices.

Etika Annual Report 201296
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
8. Deferred tax assets
Group
2012 2011
RM’000 RM’000
Balance at 1 October 14,892 1,488
Currency realignment (1,163) 380
Acquisition of subsidiaries - 10,320
Recognised in consolidated statement of comprehensive income (940) 2,704
Balance at 30 September 12,789 14,892
The followings are the major deferred tax assets recognised by the Group and movements thereon during the financial year.
Other
Property, deductible
plant and Unutilised temporary
equipment tax losses differences Total
Group RM’000 RM’000 RM’000 RM’000
Balance at 1 October 2010 488 - 1,000 1,488
Currency realignment 1 577 (198) 380
Acquisition of subsidiaries 250 10,015 55 10,320
Recognised in consolidated statement of comprehensive income 474 703 1,527 2,704
Balance at 1 October 2011 1,213 11,295 2,384 14,892
Currency realignment 36 (1,132) (67) (1,163)
Recognised in consolidated statement of comprehensive income (1,130) 1,149 (959) (940)
Balance at 30 September 2012 119 11,312 1,358 12,789
Group
2012 2011
Deferred tax assets not recognised RM’000 RM’000
Balance at 1 October - -
Deferred tax assets not recognised during the financial year 885 -
Balance at 30 September 885 -
At the end of the financial year, the above deferred tax assets not recognised comprises unutilised tax losses and other temporary
differences of approximately RM1,774,000 (2011: nil) and RM1,767,000 (2011: nil) respectively and are available for set-off against future
taxable profits. No deferred tax asset has been recognised in respect of these items due to the unpredictability of the profit streams. The
unutilised tax losses are subject to agreement by relevant tax authorities. These deductible temporary differences do not expire under
current tax legislation.

Etika Annual Report 201297
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
9. Intangible assets
Patents and Product Franchise
Goodwill trademarks licences Software fee Total
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Cost
Balance at 1 October 2011 59,446 50,512 10 1,427 - 111,395
Additions - - - 422 982 1,404
Currency realignment 295 - (2) 12 - 305
Disposal - - - (128) - (128)
Transfer from property, plant
and equipment - - - 12 - 12
Balance at 30 September 2012 59,741 50,512 8 1,745 982 112,988
Accumulated amortisation
Balance at 1 October 2011 - - 9 620 - 629
Amortisation for the financial year - - 1 266 18 285
Currency realignment - - (2) 9 - 7
Disposal - - - (62) - (62)
Transfer from property, plant
and equipment - - - 3 - 3
Balance at 30 September 2012 - - 8 836 18 862
Carrying amount
Balance at 30 September 2012 59,741 50,512 - 909 964 112,126
In financial year 2012, the Group had paid a franchise fee of RM982,000, through a subsidiary, which entered into an International Multiple
Unit Franchisee Agreement to develop and operate “Texas Chicken” restaurants over 10 years, [See note 6.3(ii)].
Patents and Product
Goodwill trademarks licences Software Total
Group RM’000 RM’000 RM’000 RM’000 RM’000
Cost
Balance at 1 October 2010 16,852 12,718 10 1,253 30,833
Additions - 1,100 - 146 1,246
Acquisition of subsidiaries 41,968 36,694 - - 78,662
Currency realignment 626 - - - 626
Disposal - - - (20) (20)
Written off - - - (129) (129)
Transfer from property, plant and equipment - - - 177 177
Balance at 30 September 2011 59,446 50,512 10 1,427 111,395
Accumulated amortisation
Balance at 1 October 2010 - - 8 478 486
Amortisation for the financial year - - 1 241 242
Currency realignment - - - (6) (6)
Disposal - - - (3) (3)
Written off - - - (90) (90)
Balance at 30 September 2011 - - 9 620 629
Carrying amount
Balance at 30 September 2011 59,446 50,512 1 807 110,766
In financial year 2011, the Group purchased patents and trademarks of RM1,100,000 through the partial setting off of amount receivable of
RM278,000 from the disposal of a subsidiary (see Note 6.6 to the financial statements). This set-off is a non-cash transaction.

Etika Annual Report 201298
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
9. Intangible assets (Continued)
Software
2012 2011
Company RM’000 RM’000
Cost
Balance at 1 October 165 160
Currency realignment 6 5
Additions 51 -
Balance at 30 September 222 165
Accumulated amortisation
Balance at 1 October 60 28
Amortisation for the financial year 33 33
Currency realignment 5 (1)
Balance at 30 September 98 60
Carrying amount
Balance at 30 September 124 105
Product licenses are licenses for dairy products and are amortised over their useful life of 5 years.
Patents and trademarks relate to various trademarks under the brand names of Horleys, Vixumilk, Goodday, Salam Mie and Daily Fresh
acquired through business combinations in prior financial years.
The useful lives of the patents and trademarks are estimated to be indefinite because based on the current market share of the patents and
trademarks, management believes that there is no foreseeable limit to the period over which the patents and trademarks are expected to
generate net cash flow for the Group. As such there is no amortisation of the costs of patents and trademarks.
Impairment testing of goodwill, patent and trademarks and other intangible assets
Goodwill acquired in a business combination is allocated to the cash generating units (“CGUs”) that are expected to benefit from that
business combination.
For presentation purposes, the carrying amounts of goodwill, patents and trademarks and other intangible assets allocated to the respective
CGUs have been regrouped to the following segments:
(a) Dairies Division;
(b) Trading and Frozen Food Division;
(c) Nutrition Division; and
(d) Others Divisions.
The above segments differ from the prior year due to the re-organisation of operating segments in the current year as disclosed in Note 31.
In the prior year, the carrying amounts of goodwill, patents and trademarks and other intangible assets allocated to the respective CGUs
have been grouped in the following segments:
(a) Dairies Division;
(b) Frozen Food Division;
(c) Packaging Division; and
(d) Others Divisions.

Etika Annual Report 201299
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
9. Intangible assets (Continued)
Impairment testing of goodwill, patents and trademarks and other intangible assets (Continued)
Trading and
Frozen
2012 Dairies Food Nutrition Others Total
Carrying amount RM’000 RM’000 RM’000 RM’000 RM’000
Goodwill 43,486 6,062 8,346 1,847 59,741
Patents and trademarks 29,350 13,051 8,111 - 50,512
Software 226 550 - 133 909
Franchise fee - - - 964 964
73,062 19,663 16,457 2,944 112,126
Frozen
2011 Dairies Food Packaging Others Total
Carrying amount RM’000 RM’000 RM’000 RM’000 RM’000
Goodwill 43,486 6,062 1,847 8,051 59,446
Patents and trademarks 29,328 13,051 - 8,133 50,512
Product licences 1 - - - 1
Software 287 411 - 109 807
73,102 19,524 1,847 16,293 110,766
Others in financial year 2012 include intangible assets that are related mainly to the Packaging Division, while Others in financial year 2011
include intangible assets that are related mainly to the Nutrition Division.
The recoverable amount of a CGU is determined based on value in use calculations. These calculations use cash flow projections based on
financial budgets approved by Directors for periods covering a 5-year period. The management has considered and determined the factors
applied in the financial budgets which include budgeted gross margins, pre-tax discount rates and estimated growth rates. The budgeted
gross margins are based on past performance and the average growth rates and discount rates used are based on management’s best
estimate. Key assumptions used for value in use calculations are as follows:
Trading and
Dairies Frozen Food Nutrition Others
2012 % % % %
Gross margin
(1)
17.36 21.84 48.17 35.11
Growth rate
(2)
18.34 17.18 5.45 33.50
Discount rate
(3)
8.17 7.78 13.53 9.57
Dairies Frozen Food Packaging Others
2011 % % % %
Gross margin
(1)
18.53 33.79 10.86 47.33
Growth rate
(2)
34.87 21.49 25.44 6.44
Discount rate
(3)
11.29 8.72 7.85 16.30
(1)
Average budgeted gross margin.
(2)
Weighted average growth rate used to extrapolate cash flows for the 5 year period.
(3)
Average pre-tax discount rate applied to the cash flow projections.

Etika Annual Report 2012100
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
9. Intangible assets (Continued)
Impairment testing of goodwill, patent and trademarks and other intangible assets (Continued)
Sensitivity to changes in assumptions
The management believes that changes in any of the above key assumptions would not cause the carrying amounts of the respective
CGUs to be materially different from their recoverable amount.
10. Inventories
Group
2012 2011
RM’000 RM’000
Finished goods 64,889 64,079
Raw materials 57,563 73,890
Packaging materials 5,091 3,717
Work in progress 3,957 4,725
Consumables 572 597
132,072 147,008
The cost of inventories recognised as an expense and included in “cost of goods sold” in the consolidated statement of comprehensive
income amounted to approximately RM759,202,000 (2011: RM661,804,000).
As at the end of the financial year, the Group’s inventories with a carrying amount of approximately RM6,729,000 (2011: RM5,384,000) is
subject to a floating charge for the banking facilities granted to a subsidiary.
11. Trade and other receivables
Group Company
2012 2011 2012 2011
RM’000 RM’000 RM’000 RM’000
Current receivables
Trade receivables 156,824 148,654 - -
Allowance for doubtful trade receivables (12,597) (7,459) - -
144,227 141,195 - -
Other receivables 3,364 1,461 137 342
Allowance for doubtful other receivables (113) (120) - -
3,251 1,341 137 342

Etika Annual Report 2012101
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
11. Trade and other receivables (Continued)
Group Company
2012 2011 2012 2011
RM’000 RM’000 RM’000 RM’000
Prepayments 3,815 5,604 - -
Deposits 1,284 2,215 41 40
Advances to suppliers 4,027 5,728 - -
Due from subsidiaries - non-trade - - 96,049 90,088
9,126 13,547 96,090 90,128
156,604 156,083 96,227 90,470
Non-current receivables
Trade receivables 207 131 - -
Deposit 50 - - -
257 131 - -
156,861 156,214 96,227 90,470
The trade amounts owing by third parties are repayable within the normal trade credit terms of 30 days to 90 days (2011 : 30 days to 90
days). In the opinion of the management, based on the review of the trade receivables, including balances that are outstanding for more
than 90 days, allowance for doubtful receivables as at 30 September 2012 is adequate (2011: adequate).
Other receivables owing by third parties comprise mainly goods and service tax.
The non-trade amounts due from subsidiaries are unsecured, interest-free and repayable on demand.
The non-current trade receivables pertaining to several third-party customers amounting to approximately RM254,000 (2011: RM166,000)
are being paid through installments over periods of 2 to 10 years. The amortised cost recognised in the consolidated statement of
comprehensive income amounted to approximately RM47,000 (2011: RM35,000).
Movements in allowance for doubtful trade receivables:
Group
2012 2011
RM’000 RM’000
Balance at 1 October 7,459 6,738
Currency realignment (82) (26)
Allowance made during the financial year 7,470 1,647
Write back of allowance no longer required (643) (610)
Bad receivables written off against allowance (1,607) (290)
Balance at 30 September 12,597 7,459

Etika Annual Report 2012102
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
11. Trade and other receivables (Continued)
Allowance for doubtful trade receivables arose mainly from customers who have difficulty in settling the amount due. Write back of
allowance no longer required is due to amount either recovered during the financial year or has been reassessed as recoverable.
Movements in allowance for doubtful other receivables:
Group
2012 2011
RM’000 RM’000
Balance at 1 October 120 -
Currency alignment (7) -
Allowance made during the financial year - 120
Balance at 30 September 113 120
Trade and other receivables are denominated in the following currencies:
Group Company
2012 2011 2012 2011
RM’000 RM’000 RM’000 RM’000
Ringgit Malaysia 111,134 115,821 6,849 16,036
Singapore Dollar 2,747 3,930 40,581 37,684
United States Dollar 17,773 21,588 28,642 15,674
Indonesian Rupiah 12,637 4,387 9,696 10,577
New Zealand Dollar 3,580 2,984 6,592 6,857
Australian Dollar 4,718 4,745 - -
Euro 51 568 3,853 3,627
Vietnamese Dong 4,196 2,191 14 15
Swiss Franc 25 - - -
156,861 156,214 96,227 90,470
12. Fixed deposits
Fixed deposits are placed for a period of 1 month to 12 months (2011: 1 month to 12 months) and the effective interest rates on the fixed
deposits ranging from 0.5% to 3.1% (2011: 3% to 14%) per annum. As at the end of the financial year, fixed deposits of RM396,000 (2011:
RM380,000) of the Group have been pledged as security for the banking facilities granted to its subsidiaries.
Fixed deposits are denominated in the following currencies:
Group Company
2012 2011 2012 2011
RM’000 RM’000 RM’000 RM’000
Ringgit Malaysia 505 488 - -
United States Dollar 3,033 - - -
Indonesian Rupiah 949 - - -
Vietnamese Dong - 1,657 - -
4,487 2,145 - -

Etika Annual Report 2012103
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
13. Cash and cash equivalents
For the purpose of presenting the consolidated statement of cash flows, the consolidated cash and cash equivalents comprise the
following:
Group
2012 2011
RM’000 RM’000
Cash and bank balances 40,697 29,147
Fixed deposits 4,487 2,145
Bank overdraft (10,608) (33,993)
34,576 (2,701)
Pledged fixed deposits (396) (380)
Cash and cash equivalents, per consolidated statement of cash flows 34,180 (3,081)
Cash and bank balances are denominated in the following currencies:
Group Company
2012 2011 2012 2011
RM’000 RM’000 RM’000 RM’000
Ringgit Malaysia 26,425 20,421 445 684
Singapore Dollar 1,833 593 1,434 248
United States Dollar 5,758 99 - -
New Zealand Dollar 1,908 2,028 536 152
Australian Dollar 774 2,222 - -
Indonesian Rupiah 2,737 2,312 - -
Vietnamese Dong 1,262 1,472 - -
40,697 29,147 2,415 1,084
14. Trade and other payables
Group Company
2012 2011 2012 2011
RM’000 RM’000 RM’000 RM’000
Current liabilities
Trade payables 71,166 69,841 - -
Other payables 20,090 14,848 247 361
Customers’ deposits 4,124 1,399 - -
Accruals 20,586 15,692 2,407 2,325
Due to subsidiaries – non-trade - - 28,852 22,992
115,966 101,780 31,506 25,678
Non-current liabilities
Other payables 2,748 1,640 - -
118,714 103,420 31,506 25,678
The trade amounts are repayable within the normal trade credit terms of 7 days to 90 days (2011: 7 days to 90 days).

Etika Annual Report 2012104
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
14. Trade and other payables (Continued)
Current portion of other payables comprise mainly other operating expenses payable, goods and service tax, and advances from non-
controlling interest holders. Non-current other payables comprise long term employment benefits. In view of the insignificant effect of the
long term employment benefits on the Group’s financial position and results, the management did not separately disclosure information
as required by FRS 19 Employee Benefits.
The non-trade amounts due to subsidiaries are unsecured, interest-free and repayable on demand.
Trade and other payables are denominated in the following currencies:
Group Company
2012 2011 2012 2011
RM’000 RM’000 RM’000 RM’000
Ringgit Malaysia 85,107 81,145 24,972 11,022
Singapore Dollar 2,743 2,462 - 4,427
United States Dollar 6,570 3,342 3,715 7,550
British Pound - 523 - -
Australian Dollar 677 648 - -
Euro 41 75 - -
Swiss Franc - 141 - -
New Zealand Dollar 8,555 4,170 2,174 1,761
Indonesian Rupiah 10,811 8,156 645 918
Vietnamese Dong 4,210 2,758 - -
118,714 103,420 31,506 25,678
15. Bank borrowings
Group
2012 2011
RM’000 RM’000
Current liabilities
Secured:
Bank overdrafts 10,608 33,993
Banker’s acceptance 109,475 103,016
Short term revolving credit 9,458 -
Offshore foreign currency loans 23,308 20,720
Term loans 29,599 5,732
182,448 163,461
Unsecured:
Banker’s acceptance 15,728 5,953
Short term revolving credit 4,500 -
20,228 5,953
202,676 169,414
Non-current liabilities
Secured:
Offshore foreign currency loans 41,404 32,276
Term loans 183,293 188,601
224,697 220,877
427,373 390,291
The carrying amounts of bank borrowings approximate their fair values as they are floating rate instruments that are re-priced to market
interest rates on or near the end of the reporting period.

Etika Annual Report 2012105
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
15. Bank borrowings (Continued)
Bank borrowings are denominated in the following currencies:
Group
2012 2011
RM’000 RM’000
Ringgit Malaysia 339,868 315,964
United States Dollar 42,378 32,478
New Zealand Dollar 22,334 23,389
Indonesian Rupiah 22,793 18,460
427,373 390,291
In financial year 2011, the Group entered into a syndicated facility of RM368,000,000 with a consortium of three leading Malaysian
financial institutions, each on equal proportion. The facility was made available for utilisation by certain subsidiaries in Dairies, Trading and
Frozen Food, and Others Divisions. The facility comprises RM363,000,000 Islamic financing and tradelines and RM5,000,000 conventional
foreign exchange contract facility. Out of RM368,000,000, RM152,000,000 was used to redeem the existing bank borrowings in Malaysia,
RM159,000,000 was used for trade working capital whilst the remaining balance is to fund the merger and acquisition plans, as well as
capital expansion of the Group.
Group
2012 2011
RM’000 RM’000
Term loans analysed by division:
Dairies Division
Term loan repayable by 2 quarterly installments of RM3,892,857 each commencing July 2012 and
followed by 26 quarterly installments of RM7,739,011 each commencing January 2013 197,604 172,543
Term loan acquired through business combination with remaining 31 monthly installments of
RM40,314 each commenced in January 2011 via acquisition of a subsidiary 389 824
Term loan acquired through business combination with remaining 37 monthly installments of
RM88,167 each commenced in January 2011 via acquisition of a subsidiary 1,338 2,258
Term loan repayable by 14 half yearly installments of USD714,285 equivalent to
RM2,277,498 each commenced in June 2011 24,280 29,607
Term loan repayable by 8 half-yearly installments of USD500,000 equivalent to
RM1,544,450 each commencing December 2013 and 4 half-yearly instalments
of USD1,500,000 equivalent to RM4,633,350 each commencing December 2017 18,098 -
Trading and Frozen Food Division
Term loan acquired through business combination with remaining 107 monthly installments of
RM3,140 each commenced in September 2009 via acquisition of a subsidiary 227 247

Etika Annual Report 2012106
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
15. Bank borrowings (Continued)
Group
2012 2011
RM’000 RM’000
Term loans analysed by division: (Continued)
Others Divisions
Term loan repayable until the expiry date commenced in February 2007 1,026 1,485
Term loan repayable by 40 quarterly installments of NZD73,693 equivalent to
RM189,133 each commenced in February 2007 3,404 4,014
Term loan repayable until the expiry date commenced in April 2010 9,753 9,407
Term loan repayable until the expiry date commenced in December 2010 3,850 3,713
Term loan repayable by 37 quarterly installments of NZD83,784 equivalent to
RM215,032 commenced in February 2008 4,301 4,771
Term loan repayable by 90 monthly installments of IDR417,755,379 equivalent to
RM132,156 each commencing January 2012 10,648 15,098
Term loan repayable by 90 monthly installments of IDR105,397,070 equivalent to
RM33,342 each commencing January 2012 2,686 3,362
277,604 247,329
Group
2012 2011
RM’000 RM’000
Offshore foreign currency loans and term loans analysed into:
Current 52,907 26,452
Non-current 224,697 220,877
277,604 247,329
Group
2012 2011
% %
Effective interest rates
Bank overdrafts 6.89 - 7.60 7.10 - 11.75
Banker’s acceptance 2.99 - 4.84 3.10 - 11.75
Offshore foreign currency loans 3.80 - 7.10 3.79 - 6.35
Short term revolving credit 5.05 - 11.25 -
Term loans 6.95 -11.25 7.10 - 12.75

Etika Annual Report 2012107
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
15. Bank borrowings (Continued)
Non-current bank borrowings are repayable as follows:
Group
2012 2011
RM’000 RM’000
After one year 39,512 37,210
Two to five years 116,777 118,106
After five years 68,408 65,561
224,697 220,877
The secured bank borrowings are secured by:
(a) Various fixed charges over specific land and buildings of the Group as indicated in Note 4 and 5;
(b) Various debentures incorporating fixed charges over specific plant and machinery of the Group as indicated in Note 4;
(c) Various security documents in respect of immovable properties or specific assets acquired and financed under the syndicated
facility;
(d) Various memorandum of deposit incorporating legal charges over shares of any companies acquired;
(e) Limited charge on Horley’s brand name; and
(f ) Pledged of unquoted shares of certain subsidiaries.
All the above secured borrowings and unsecured borrowings, except for a secured term loan of RM227,000 (2011: RM247,000) granted to
a subsidiary, are guaranteed by the Company.
16. Finance lease payables
Minimum Future Present
lease finance value of lease
payments charges payments
Group RM’000 RM’000 RM’000
2012
Current
- within one year 3,499 (418) 3,081
Non-current
- two to five years 5,571 (443) 5,128
- more than five years 75 (1) 74
5,646 (444) 5,202
Group
2011
Current
- within one year 3,328 (415) 2,913
Non-current
- two to five years 5,741 (473) 5,268

Etika Annual Report 2012108
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
16. Finance lease payables (Continued)
The effective interest rates range from 2.25% to 12.69% (2011: 2.25% to 7.21%) per annum.
The Group’s obligations under finance leases are secured by the lessors’ titles to the leased assets.
Finance leases are denominated in the following currencies:
Group
2012 2011
RM’000 RM’000
Ringgit Malaysia 8,212 8,181
Indonesian Rupiah 71 -
8,283 8,181
17. Derivative financial instruments
2012 2011
Contract/ Contract/
Notional Notional
Group amount Liabilities amount Liabilities
At fair value RM’000 RM’000 RM’000 RM’000
Forward currency contracts 1,531 14 6,304 317
Forward currency contracts have been entered into to operationally hedge forecast sales and purchases denominated in foreign currencies
that are expected to occur at various dates within three (3) months from the end of the reporting period. The forward currency contracts
have maturity dates that coincide with the expected occurrence of these transactions. The fair value of these components has been
determined based on the difference between the quarterly future rates and the strike rate discounted at the convenience yield of the
instruments involved.
During the financial year, the Group recognised total gains/losses of RM303,000 (2011: RM317,000) arising from fair value changes of
derivative liabilities. The fair value changes are attributable to changes in foreign exchange spot and forward foreign exchange and interest
rates.
The fair value of a forward foreign exchange contract is the amount that would be payable or receivable upon termination of the outstanding
position arising and is determined by reference to the difference between the contracted rate and the forward exchange rate as at the end
of the reporting period applied to a contract of similar amount and maturity profile.
The transaction involving derivative financial instruments are conducted with creditworthy banks with no recent history of default.

Etika Annual Report 2012109
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
18. Financial guarantee contracts
Company
2012 2011
RM’000 RM’000
Balance at 1 October 7,645 6,897
Issuance of financial guarantee contracts, at initial recognition - 748
Balance at 30 September 7,645 7,645
The balance as at 30 September 2012 of RM7,645,000 (2011: RM7,645,000) represents the fair value of financial guarantee contracts which
was discounted at interest rates ranging from 4.42% to 11.25% (2011: 4.42% to 11.75%) for over 5 to 6 years.
19. Deferred tax liabilities
Group
2012 2011
RM’000 RM’000
Balance at 1 October 19,653 11,577
Currency realignment (130) (494)
Acquisition of subsidiaries - 8,502
Disposal of a subsidiary - (2)
Recognised in consolidated statement of comprehensive income 164 70
Balance at 30 September 19,687 19,653
The followings are the major deferred tax liabilities recognised by the Group and movements thereon during the financial year.
Fair value
adjustments Other
on property, Property, taxable
plant and plant and temporary
equipment equipment differences Total
RM’000 RM’000 RM’000 RM’000
Group
Balance at 1 October 2010 2,794 7,772 1,011 11,577
Currency realignment - (489) (5) (494)
Acquisition of subsidiaries 7,604 220 678 8,502
Disposal of a subsidiary - (2) - (2)
Recognised in consolidated statement of
comprehensive income 114 (77) 33 70
Balance at 1 October 2011 10,512 7,424 1,717 19,653
Currency realignment - (7) (123) (130)
Recognised in consolidated statement of
comprehensive income (5,109) 6,677 (1,404) 164
Balance at 30 September 2012 5,403 14,094 190 19,687

Etika Annual Report 2012110
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
20. Share capital
Group and Company
2012 2011
S$’000 RM’000 S$’000 RM’000
Issued and fully paid:
Balance at 1 October 24,666 56,412 24,666 56,412
Issuance of ordinary shares arising from
the exercise of share options 264 652 - -
Balance at 30 September 24,930 57,064 24,666 56,412
The Company has only one class of ordinary shares which carry no right to fixed income.
The holders of ordinary shares of the Company are entitled to receive dividends as and when declared by the Company. All ordinary shares
of the Company carry one vote per share without restriction.
Share capital does not have a par value.
All of these newly issued ordinary shares rank pari-passu with the existing ordinary shares.
Movements in number of shares issued and outstanding warrants:
Group and Company
Number of ordinary shares
2012 2011
’000 ’000
Balance at 1 October 534,582 267,291
Issuance of bonus shares - 267,291
Issuance of ordinary shares arising from the exercise of share options 1,610 -
Balance at 30 September 536,192 534,582
On 12 October 2010, the Company has allotted and issued 1 bonus share for every 1 ordinary share held by shareholders in the Company.
Treasury shares
Movement in treasury shares:
Group and Company
Number of treasury shares Amount
2012 2011 2012 2011
‘000 ‘000 RM‘000 RM‘000
Balance at 1 October 1,210 605 183 183
Issuance of bonus shares - 605 - -
Balance at 30 September 1,210 1,210 183 183
The total amount paid to repurchase the shares has been deducted from shareholders’ equity. The repurchased shares are held as “treasury
shares”. The company intends to reissue these repurchased shares to employees when the employees exercise their share options under
the Etika Employee Share Options Scheme in the future.

Etika Annual Report 2012111
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
20. Share capital (Continued)
Etika Employee Share Options Scheme (“ESOS”)
Statutory and other information regarding the ESOS is set out below:
(i) The Remuneration Committee (“the Committee”) may at its discretion, fix the subscription price at a discount up to 20% off market
price, or a price equal to the average of the last dealt market prices for the 5 consecutive market days immediately preceding the grant
of the options.
(ii) Consideration for the grant of an option is S$1.00.
(iii) Options can be exercised 1 year after grant for market price options and 2 years for discounted options.
(iv) Options granted expire after 10 years for employees of the Group or such earlier date as may be determined by the Committee.
(v) Options granted will lapse when participant ceases to be a full-time employee with the Group, subject to certain exceptions at the
discretion of the Company.
(vi) The aggregate number of shares over which options may be granted on any date, when added to the number of shares issued and
issuable in respect of all options granted under the ESOS, shall not exceed 15% of the issued share capital of the Company on the day
preceding that date of grant.
Information in respect of the share options granted under the ESOS is as follows:
2012 2011
Weighted Weighted
Number average Number average
of share exercise of share exercise
options price options price
‘000 S$ ‘000 S$
Outstanding at 1 October 40,668 0.321 6,851 0.328
Exercised (1,610) 0.164 - -
Granted - - 27,230 0.400
Adjustment for one for one bonus issue - - 6,843 0.164
Lapsed/cancelled (40) 0.164 (256) 0.169
Outstanding at 30 September 39,018 0.328 40,668 0.321
Exercisable as at 30 September 11,788 0.290 -
In financial year 2011, 27,230,000 share options were granted. The estimated fair value of the share options were S$3,033,000 for vesting
period from October 2010 to October 2012.
The fair value of share options as at the date of grant is estimated by an external independent valuer using the Binomial option-pricing
model, taking into account the terms and conditions upon which the options were granted. The significant inputs into the model were
share prices at date of grant, exercise price, yield, expected volatility, risk-free interest rate, option life expected.

Etika Annual Report 2012112
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
20. Share capital (Continued)
Etika Employee Share Options Scheme (“ESOS”) (Continued)
Information in respect of the share options granted under the ESOS is as follows: (Continued)
Volatility, measured as the standard deviation of expected share price returns, was based on the average 10-day volatility over one year
observation period in accordance with convention laid down by Bank for International Settlements. The inputs to the model used are
shown below.
Expected Risk-free Expected Share price
dividend Expected interest life of Exercise at date of
yield volatility rate options Price grant
Date of grant (%) (%) (%) (years) S$ S$
10.02.2010 6.82 30 1.54 7 0.164* 0.415
13.10.2010 3.50 20 1.24 7 0.400 0.495
* exercise price has been adjusted for a bonus issue of one for one.
21. Foreign currency translation reserve
The foreign currency translation reserve represents exchange differences arising from the translation of the financial statements of foreign
operations where functional currencies are different from that of the Group’s presentation currency. This is non-distributable and the
movements in this account are set out in the consolidated statement of changes in equity.
22. Fair value reserves
Fair value reserves represent the cumulative change in the fair value of available-for-sale financial assets until they are derecognised and
cumulative change in the fair value of employee benefits. Movements in these reserves are set out in the consolidated statements of
changes in equity.
23. Revenue
Revenue represents the invoiced value of goods sold less returns and trade discounts.
24. Finance costs
Group
2012 2011
RM’000 RM’000
Interest expense
- bank overdrafts 209 1,328
- banker’s acceptance 5,292 3,839
- term loans 17,210 11,381
- offshore foreign currency loans 2,619 2,598
- finance lease 570 506
- others 89 1,492
25,989 21,144

Etika Annual Report 2012113
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
25. Profit before income tax
In addition to the charges and credits disclosed elsewhere in the financial statements, profit before income tax is arrived at after charging/
(crediting) the following:
Group
2012 2011
RM’000 RM’000
Allowance for doubtful receivables 7,470 1,767
Non-audit fees paid to other auditors 106 200
Amortisation of intangible assets 285 242
Amortisation of prepaid lease payment for land 359 235
Depreciation of property, plant and equipment 22,061 20,570
Directors’ remuneration
- Directors of the Company 4,959 4,316
- Directors of the subsidiaries 4,901 4,878
Directors’ fee
- Directors of the Company 513 654
Inventories written off 2,377 3,351
Foreign currency exchange loss 1,865 3,990
Operating lease expense 5,092 3,333
Property, plant and equipment written off 97 375
Share options expense 4,248 4,677
Staff costs:
- Salaries, bonuses and allowances 59,043 48,884
- Employer contributions to defined contribution plans 4,710 3,728
Allowance for doubtful receivables no longer required
- trade (643) (610)
Bad debts recovered (53) (5)
Fair value (gain)/loss arising from derivative financial instruments (303) 317
Gain on disposal of property, plant and equipment (190) (230)
Interest income from fixed deposits (419) (508)
Rental income (39) (110)

Etika Annual Report 2012114
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
26. Income tax expense
Group
2012 2011
RM’000 RM’000
Current tax:
- current year 8,572 9,012
- over provision in previous years (273) (809)
8,299 8,203
Deferred tax expense:
- current year 1,777 (3,330)
- (over)/under provision in previous years (673) 696
1,104 (2,634)
9,403 5,569
Reconciliation of effective income tax rate
Group
2012 2011
RM’000 RM’000
Profit before income tax 29,999 34,154
Income tax calculated at Malaysia statutory tax rate of 25% (2011: 25%) 7,500 8,538
Effect of different tax rates in other countries 2,826 (300)
Expenses not deductible for tax purposes 9,438 6,116
Income not subject to tax (6,377) (3,983)
Tax incentives (6,593) (4,717)
Income tax over provided in prior years (273) (809)
Deferred tax (over)/under provided in prior years (673) 696
Expiration of unutilised tax losses and capital allowances 3,236 -
Utilisation of previously unrecognised deferred tax assets (1,728) (107)
Effect of deductible temporary differences not recognised 885 -
Withholding tax 1,516 113
Others (354) 22
9,403 5,569

Etika Annual Report 2012115
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
27. Earnings per share
(a) Basic
Basic earnings per share is calculated by dividing the Group’s profit after income tax attributable to the equity holders of the Company
by the weighted average number of ordinary shares in issue, after adjusted for bonus issue on 12 October 2010, during the financial
year.
Group
2012 2011
RM’000 RM’000
Profit after income tax attributable to owners of the Company (RM’000) 21,976 28,823
Weighted average number of ordinary shares in issue during the financial year (‘000) 533,942 533,372
Basic earnings per share 4.12 sen 5.40 sen
(b) Diluted
For the purpose of calculating diluted earnings per share, the Group’s profit after income tax attributable to the equity holders of the
Company and the weighted average number of ordinary shares outstanding are adjusted for the potential dilutive effect arising from
the exercise of employee share options into ordinary shares as at 30 September of the respective financial year.
Group
2012 2011
Profit after income tax attributable to owners of the Company (RM’000) 21,976 28,823
Weighted average number of shares in issue (‘000) 533,942 533,372
Adjustment for:
- Employee share options (‘000) 4,055 39,698
537,997 573,070
Diluted earnings per share 4.08 sen 5.03 sen
28. Dividends
Group and Company
2012 2011
RM’000 RM’000
Dividends paid:
Final tax exempt 1-tier dividend of S$0.007 (2011: S$0.0125) per share paid in respect
of financial years ended 30 September 2011 and 2010, respectively 9,126 15,975
Interim tax exempt 1-tier dividend of S$0.005 (2011: S$0.005) paid in respect
of financial years ended 30 September 2012 and 2011 respectively 6,546 6,536
15,672 22,511
The Directors of the Company propose that a final tax exempt 1-tier dividend of S$0.003 per share amounting to S$1,605,000 (equivalent
to RM4,040,000) to be paid for the financial year ended 30 September 2012 subject to the approval of the shareholders at the forthcoming
Annual General Meeting.
The proposed dividend is not accrued as a liability in the statement of financial position in the current financial year and will be based on
the issued share capital of the Company as at books closure date.

Etika Annual Report 2012116
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
29. Significant related party transactions
A related party is defined as follows:
(a) A person or a close member of that person’s family is related to the Group and Company if that person:
(i) has control or joint control over the Company;
(ii) has significant influence over the Company; or
(iii) is a member of the key management personnel of the Group or Company or of a parent of the Company.
(b) An entity is related to the Group and the Company if any of the following conditions applies:
(i) the entity and the Company are members of the same group (which means that each parent, subsidiary and fellow subsidiary is
related to the others).
(ii) one entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the
other entity is a member).
(iii) both entities are joint ventures of the same third party.
(iv) one entity is a joint venture of a third entity and the other entity is an associate of the third entity.
(v) the entity is a post-employment benefit plan for the benefit of employees of either the Company or an entity related to the
Company. If the Company is itself such a plan, the sponsoring employers are also related to the Company.
(vi) the entity is controlled or jointly controlled by a person identified in (a);
(vii) a person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity
(or of a parent of the entity).
Associates are related parties and include those that are associates of the holding and/or related companies.
In addition to information disclosed elsewhere in the financial statements, significant related party transactions between the Group and the
Company and its related parties during the financial year were as follows:
Group Company
2012 2011 2012 2011
RM’000 RM’000 RM’000 RM’000
With related parties:
- Insurance premium paid to a related party 3,080 2,655 51 33
- Rental of premises paid to a related party 924 924 - -
- Purchase of packing materials from related parties 1,494 1,770 - -
- Rental of premises paid to a director of a subsidiary 18 18 - -
- Rental of shop office paid to a director of a subsidiary 8 45 - -
- Loss on disposal of a subsidiary to a director of the
disposed subsidiary - 13 - -
- Purchase of intangible assets from a director of the
disposed subsidiary - 1,100 - -
- Management fees - - (7,429) (5,084)
- Dividend income - - (16,173) (22,812)
- IT service fees charged by a subsidiary - - 25 23

Etika Annual Report 2012117
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
29. Significant related party transactions (Continued)
The remuneration of Directors and other members of key management of the Group and of the Company are as follows:
Group Company
2012 2011 2012 2011
RM’000 RM’000 RM’000 RM’000
Short-term benefits 6,748 7,433 3,621 3,646
Post-employment benefits 374 435 64 51
Share options expense 3,937 3,332 2,473 2,625
11,059 11,200 6,158 6,322
Analysed into:
- Directors of the Company 5,472 4,970 5,472 4,970
- Directors of the subsidiaries 4,901 4,878 - -
- Other key management personnel 686 1,352 686 1,352
11,059 11,200 6,158 6,322
During the financial years 2012 and 2011, certain directors and key management personnel were granted share options, in respect of their
services to the Group and the Company, under the share options scheme of the Company, further details of which are set out in Note 20
to the financial statements. The fair value of such options which has been recognised in the consolidated statement of comprehensive
income over the vesting period, was determined as at the date of grant and the amount included in the financial statements for the current
financial year is included in the above directors and key management personnel remuneration disclosures.
30. Contingent liabilities and commitments
30.1 Capital commitments
As at the end of the financial year, the Group had the following capital commitments:
Group
2012 2011
RM’000 RM’000
Purchase of property, plant and equipment 13,818 18,500
30.2 Operating lease commitments
As at the end of the financial year, there were operating lease commitments for rental payable in subsequent accounting periods
as follows:
Group
2012 2011
RM’000 RM’000
Within one year 2,425 2,127
Two to five years 4,464 3,172
More than five years 6,223 5,565
13,112 10,864
As at the end of the financial year, the Group leases office premises and other operative facilities under operating leases. Leases
are negotiated and rentals are fixed for a period of 1 to 15 years with an option to renew at the prevailing market rates. There is no
contingent rental.

Etika Annual Report 2012118
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
30. Contingent liabilities and commitments (Continued)
30.3 Contingent liabilities - unsecured
Company
The Company has undertaken to provide financial support to certain subsidiaries, to enable them to operate as going concern and
to meet their obligations for at least 12 months from the date of their respective directors’ report relating to the financial statements
for the financial year ended 30 September 2012. In the opinion of the Directors, no losses are expected to arise.
As at the end of the financial year, the contingent liabilities in respect of guarantees given by the Company to banks in connection
with banking facilities granted to certain subsidiaries are:
2012 2011
RM’000 RM’000
Facilities in Ringgit Malaysia 461,192 393,892
Facilities In United States Dollar 61,778 63,770
Facilities In New Zealand Dollar 27,229 26,263
Facilities In Indonesian Rupiah 24,385 27,452
574,584 511,377
The amount of banking facilities outstanding as at 30 September 2012 amounted to RM427,146,000 (2011: RM390,044,000).
31. Segment information
Business segments
A segment is a distinguishable component of the Group’s business that is engaged either in providing products or services (business
segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks
and rewards that are different from those of other segments.
Management has determined the operating segments based on the reports reviewed that are used to make strategic decisions.
The Group’s reportable segments are strategic business units that are organised based on their function and targeted customer groups.
They are managed separately because each business unit requires different skill sets and marketing strategies.
Management monitors the operating results of the segments separately for the purpose of making decisions about resources to be allocated
and of assessing performance. Segment performance is evaluated based on operation profit or loss which is similar to the accounting profit
or loss.
The accounting policies of the operating segments are the same of those described in the summary of significant accounting policies.
There is no asymmetrical allocation to reportable segments.
Management evaluates performance on the basis of profit or loss from operation before tax expense not including non-recurring gains and
losses and foreign exchange gains or losses.
There is no change from prior periods in the measurement methods used to determine reported segment profit or loss.

Etika Annual Report 2012119
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
31. Segment information (Continued)
Business segments (Continued)
The Group’s core business segments during the previous financial year were as follows:
- Dairies Division;
- Frozen Food Division – comprising frozen food trading, butchery and bakery sub-divisions and the noodles manufacturing and
distribution business;
- Packaging Division; and
- Others Division – comprising nutrition and beverage.
During the financial year, the Group’s core business segments have been reorganised as follows:
- Dairies Division;
- Trading and Frozen Food Division – comprising frozen food trading, butchery and bakery sub-divisions and the distribution business;
- Nutrition Division; and
- Others Division – comprising packaging, beverage and noodles business.
The Group has reorganised the reportable business segments for better evaluation on the results of the performance of the business
activities. The management did not change the basis of determining business segments.
Trading and
Dairies Frozen Food Nutrition Others Unallocated Total
2012 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Revenue
External revenue 705,680 196,098 54,748 28,274 - 984,800
Results
Segments results 57,176 8,345 2,154 (233) (11,873) 55,569
Interest income 269 93 22 29 6 419
Finance costs (14,299) (5,610) (885) (5,195) - (25,989)
Profit/(Loss) before
income tax 43,146 2,828 1,291 (5,399) (11,867) 29,999
Income tax (6,612) (2,259) 409 (765) (176) (9,403)
Profit/(Loss) after
income tax 36,534 569 1,700 (6,164) (12,043) 20,596
Segment assets 470,956 151,565 54,661 106,015 3,479 786,676
Unallocated assets 4,040 2,907 2,566 12,537 1 22,051
Total assets 474,996 154,472 57,227 118,552 3,480 808,727
Segment liabilities 439,227 15,400 31,500 65,419 2,838 554,384
Unallocated liabilities 13,632 1,136 19 8,632 58 23,477
Total liabilities 452,859 16,536 31,519 74,051 2,896 577,861

Etika Annual Report 2012120
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
31. Segment information (Continued)
Business segments (Continued)
Trading and
Dairies Frozen Food Nutrition Others Unallocated Total
2012 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Other information
Capital expenditure 39,816 22,069 3,548 9,957 8 75,398
Depreciation and
amortisation 11,684 4,220 1,217 5,538 46 22,705
Allowance for doubtful
receivables 4,914 1,108 - 1,448 - 7,470
Inventories written off 2,314 63 - - - 2,377
Property, plant and
equipment written off 94 3 - - - 97
Trading and
Restated Dairies Frozen Food Nutrition Others Unallocated Total
2011 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Revenue
External revenue 609,123 188,873 55,302 26,305 - 879,603
Results
Segments results 38,594 9,776 8,021 1,136 (2,737) 54,790
Interest income 362 85 30 13 18 508
Finance costs (11,687) (4,206) (369) (3,977) (905) (21,144)
Profit/(Loss) before
income tax 27,269 5,655 7,682 (2,828) (3,624) 34,154
Income tax (3,203) (976) (1,611) 342 (121) (5,569)
Profit/(Loss) after
income tax 24,066 4,679 6,071 (2,486) (3,745) 28,585
Segment assets 432,282 137,895 51,444 102,490 2,202 726,313
Unallocated assets 2,994 2,480 1,001 13,412 7 19,894
Total assets 435,276 140,375 52,445 115,902 2,209 746,207
Segment liabilities 397,835 15,352 28,098 58,069 2,855 502,209
Unallocated liabilities 12,173 1,118 355 7,626 8 21,280
Total liabilities 410,008 16,470 28,453 65,695 2,863 523,489
Other information
Capital expenditure 17,729 19,811 4,219 6,503 13 48,275
Depreciation and
amortisation 11,475 4,131 50 5,342 49 21,047
Allowance for doubtful
receivables 687 1,072 8 - - 1,767
Inventories written off 3,351 - - - - 3,351
Property, plant and
equipment written off 361 13 - 1 - 375

Etika Annual Report 2012121
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
31. Segment information (Continued)
Geographical segments
The Group’s business segments operate in three main geographical areas. Revenue is based on the country in which the customer is located.
Segment assets consist primarily of property, plant and equipment, inventories, receivables, fixed deposits, cash and bank balances. Capital
expenditure comprises additions to property, plant and equipment. Segment assets and capital expenditure are shown by geographical
area in which the assets are located.
Asean
(excluding
Malaysia Africa Malaysia) Others Total
2012 RM’000 RM’000 RM’000 RM’000 RM’000
Total revenue from external customers 558,130 106,432 235,753 84,485 984,800
Segment assets 597,201 8,964 132,538 47,973 786,676
Capital expenditure 58,170 - 13,680 3,548 75,398
Depreciation and amortisation 16,298 - 5,190 1,217 22,705
Allowance for doubtful receivables 5,927 - 1,543 - 7,470
Inventories written off 2,377 - - - 2,377
Property, plant and equipment written off 85 - 12 - 97
2011
Total revenue from external customers 481,173 141,872 159,684 96,874 879,603
Segment assets 585,260 14,189 79,050 47,814 726,313
Capital expenditure 42,410 - 1,646 4,219 48,275
Depreciation and amortisation 16,071 - 4,926 50 21,047
Allowance for doubtful receivables 1,586 - 173 8 1,767
Inventories written off 2,715 - 636 - 3,351
Property, plant and equipment written off 375 - - - 375
32. Financial risk and capital risk management
The Group’s activities expose the Group to financial risks (including credit risks, foreign currency risks, interest rate risks and liquidity risks)
arising in the normal course of business. The Group’s overall risk management strategy seeks to minimise adverse effects from the volatility
of financial markets on the Group’s financial performance. The Group also enters into derivative transactions, including principally forward
currency contracts. The purpose is to manage the currency risks arising from the Group’s operations and its sources of finance.
The management is responsible for setting the objectives and underlying principles of financial risk management for the Group. The
management continually monitors the Group’s financial risk management process to ensure that an appropriate balance between risk and
control is achieved.
There has been no change to the Group’s exposure to these financial risks or the manner in which it manages and measures the risks. The
Group and the Company do not hold or issue derivative financial instruments for trading purposes.
32.1 Credit risks
The Group and the Company have no significant concentration of credit risks except for amounts due from subsidiaries in the
Company’s statement of financial position and the trade amounts owing by third parties. The maximum exposures to credit risks are
represented by the carrying amount of the financial assets on the statement of financial position.
Trade receivables that are neither past due nor impaired are substantially from companies with good collection track record with
the Group.

Etika Annual Report 2012122
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
32. Financial risk and capital risk management (Continued)
32.1 Credit risks (Continued)
The age analysis of trade receivables of the Group which are past due but not impaired is as follows:
Group
2012 2011
RM’000 RM’000
Past due 1 day to 3 months 44,519 52,034
Past due 3 to 6 months 8,329 4,219
Past due 6 to 12 months 4,385 1,753
Past due over 12 months 1,184 1,264
58,417 59,270
Although the above balances exceeded the normal credit terms, management is of the view that they are still collectible through,
but are not limited to, the following:
(i) several customers have made arrangements to pay their overdue accounts by installments; and
(ii) some of the trade receivables can be offset against the outstanding trade payables.
32.2 Foreign currency risks
The Group and the Company incur foreign currency risks on transactions and balances that are denominated in currencies other
than the entity’s functional currency. The currencies giving rise to these risks are primarily Singapore Dollar, British Pound, United
States Dollar, Euro, New Zealand Dollar, Indonesian Rupiah, Vietnamese Dong and Australian Dollar. Exposure to foreign currency
risks is monitored on an on-going basis to ensure that the net exposure is at an acceptable level and hedging through currency
forward exchange contracts is done where appropriate.
During the year, the Group entered into foreign currency forward contracts to manage exposures to currency risk for receivables
which are denominated in a currency other than the functional currency of the company.
The notional amount and maturity date of the forward foreign exchange contracts outstanding as at 30 September 2012 were as
follows:
Contract
amount RM’000
Contract Expiry dates USD’000 equivalent
Forward foreign exchange contracts 31/05/2013 -11/06/2013 500 1,531
At the end of the financial year, the carrying amounts of monetary assets and monetary liabilities denominated in currencies other
than the respective entity’s functional currency are disclosed in the respective notes to the financial statements.
Foreign currency sensitivity analysis
The following table details the sensitivity to a 10% increase and decrease in the respective foreign currencies against the functional
currency of the Group and the Company. 10% is the sensitivity rate used when reporting foreign currency risks internally to key
management personnel and represents the management’s assessment of the possible change in foreign exchange rates.

Etika Annual Report 2012123
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
32. Financial risk and capital risk management (Continued)
32.2 Foreign currency risks (Continued)
Foreign currency sensitivity analysis (continued)
The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at
the year-end for a 10% change in foreign currency rates. The sensitivity analysis includes external loans as well as loans to foreign
operations within the Group where they gave rise to an impact on the Group’s net income.
If the respective foreign currency weakens by 10% (2011: 10%) against the functional currency, profit before income tax of the Group
will increase/(decrease) by:
Consolidated statement
of comprehensive
income
2012 2011
Group RM’000 RM’000
Singapore Dollar - (81)
United States Dollar 3,118 1,026
British Pound - 52
Australian Dollar (404) (410)
Vietnamese Dong 1 57
Euro (1) (3)
2,714 641
If the respective foreign currency weakens by 10% (2011: 10%) against the functional currency, profit before income tax of the
Company will decrease by:
Statement of
comprehensive income
2012 2011
RM’000 RM’000
Company
Singapore Dollar 248 230
As at the end of the financial year, the Company’s equity is not affected by changes in the foreign currency.
A 10% strengthening of the respective foreign currency against the functional currency would have an equal but opposite effect to
the Group and the Company.

Etika Annual Report 2012124
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
32. Financial risk and capital risk management (Continued)
32.3 Interest rate risks
The Group’s and the Company’s exposure to market risks for changes in interest rates relates primarily to fixed deposits and bank
borrowings with financial institutions. The Group maintains an efficient and optimal interest cost structure using a combination of
fixed and variable rate debts, and long and short term borrowings.
Interest rate sensitivity analysis
The sensitivity analysis below has been determined based on the exposure to interest rate risks for financial liabilities at the end of
the financial year. For floating rate liabilities, the analysis is prepared assuming the amount of liability outstanding at the end of the
financial year was outstanding for the whole year. The sensitivity analysis assumes an instantaneous 3% (2011: 3%) change in the
interest rates from the end of the financial year, with all variables held constant.
If the interest rate increases by 3% (2011: 3%), profit before tax of the Group will decrease/(increase) by:
Group
2012 2011
RM’000 RM’000
Bank borrowings 12,503 10,689
Bank overdrafts 318 1,020
Fixed deposits (135) (64)
12,686 11,645
A 3% decrease in the interest rates would have an equal but opposite effect to the Group.
The Company has no bank borrowings for financial years 2012 and 2011.
32.4 Liquidity risks
The Group and the Company actively manage their operating cash flows and the availability of funding so as to ensure that all
repayment and funding needs are met. As part of their overall prudent liquidity management, the Group and the Company maintain
sufficient levels of cash and cash equivalents to meet their working capital requirements. Short-term funding is obtained from
overdraft facilities from banks and finance leases from financial institutions.
The following table details the Group’s remaining contractual maturity for its non-derivative financial instruments. The table has
been drawn up based on undiscounted cash flows of financial instruments based on the earlier of the contractual date or when the
Group is expected to pay. The table includes both interest and principal cash flows.
Less than 1 to 2 2 to 5 More than
1 year years years 5 years Total
RM’000 RM’000 RM’000 RM’000 RM’000
Group
2012
Bank borrowings 201,373 42,537 137,104 62,164 443,178
Bank overdrafts 11,414 - - - 11,414
Finance lease payables 3,499 2,668 2,903 75 9,145
Trade and other payables 115,966 - - 2,748 118,714
332,252 45,205 140,007 64,987 582,451
2011
Bank borrowings 139,726 40,850 125,952 70,265 376,793
Bank overdrafts 36,665 - - - 36,665
Finance lease payables 3,328 2,727 3,014 - 9,069
Trade and other payables 101,780 - - 1,640 103,420
281,499 43,577 128,966 71,905 525,947

Etika Annual Report 2012125
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
32. Financial risk and capital risk management (Continued)
32.4 Liquidity risks (Continued)
The repayment terms of the bank loans, overdrafts and finance leases are disclosed in Notes 15 and 16 to the financial statements.
Less than 1 to 2 2 to 5 More than
1 year years years 5 years Total
RM’000 RM’000 RM’000 RM’000 RM’000
Company
2012
Trade and other payables 31,506 - - - 31,506
2011
Trade and other payables 25,678 - - - 25,678
32.5 Fair values of financial assets and financial liabilities
The carrying amount of cash and cash equivalents, trade and other current debtors and creditors approximate their respective fair
values due to the relative short term maturity of these financial instruments. The fair values of other classes of financial assets and
liabilities are disclosed in the respective notes to the consolidated financial statements.
The fair value of financial assets and financial liabilities are determined as follows:
(a) the fair values of financial assets and financial liabilities with standard terms and conditions and which trade in active liquid
markets are determined with reference to quoted market prices (Level 1 of fair value hierarchy).
(b) in the absence of quoted market prices, the fair value of other financial assets and financial liabilities (excluding derivative
instruments) are determined using the other observable inputs such as quoted prices for similar assets/liabilities in active
market, quoted prices for identical or similar assets/liabilities in non-active markets or inputs other than quoted prices that are
observable for the asset or liability (Level 2 of fair value hierarchy).
(c) in the absence of observable inputs, the fair value of the remaining financial assets and financial liabilities (excluding derivative
instruments) are determined in accordance with generally accepted pricing models (Level 3 of fair value hierarchy).
(d) the fair value of derivative instruments are calculated using quoted prices (Level 1 of fair value hierarchy). Where such prices are
unavailable, discounted cash flow analysis is used, based on the applicable yield curve of the duration of the instruments for
non-optional derivatives, and option pricing models for optional derivatives (Level 3 of fair value hierarchy).
The Group has carried its quoted investments that are classified as available-for-sale financial assets at their fair values. These financial
assets belong to level 1 of the fair value hierarchy. The derivative financial instruments are measured at fair value through profit or
loss and belong to Level 2 of the fair value hierarchy.

Etika Annual Report 2012126
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
32. Financial risk and capital risk management (Continued)
32.5 Fair values of financial assets and financial liabilities (Continued)
The following table sets out the financial instruments as at the end of the financial year:
Group Company
2012 2011 2012 2011
RM’000 RM’000 RM’000 RM’000
Financial assets
Loans and receivables (including fixed deposits and
cash and cash equivalents) 192,919 173,959 98,601 91,514
Available-for-sale financial assets 235 265 - -
Financial liabilities
Amortised cost (including loans and payables) 554,370 501,892 31,506 25,678
Derivative financial instruments 14 317 - -
32.6 Capital risk management policies and objectives
The Group and the Company manage their capital to ensure that the Group and the Company are able to continue as a going
concern and maintain an optimal capital structure so as to maximise shareholders’ values.
The Company may purchase its own shares from the market and the timing of these purchases depends on market prices. Primarily,
such actions are intended to enhance the return to the Company’s shareholders and to be used for issuing shares under the Group’s
share options scheme in the future. Buy and sell decisions are made on a specific transaction basis by the management. The Company
does not have a defined buy-back plan.
The management monitors capital based on gearing ratio. The gearing ratio is calculated as net debt divided by total capital. Net
debt is calculated as interest bearing liabilities less cash and cash equivalents. Total capital is calculated as equity plus net debt. The
Group overall strategy remains unchanged since financial year 2011 which is to maintain a gearing ratio of less than 75%.
Management constantly reviews the capital structure to ensure the Group and the Company are able to service all debt obligations
(include principal repayment and interests) based on its operating cash flows.
Group Company
2012 2011 2012 2011
RM’000 RM’000 RM’000 RM’000
Net debt/(cash) 390,472 401,554 (2,415) (1,084)
Total equity 230,866 222,718 98,042 96,136
Total capital 621,338 624,272 95,627 95,052
Gearing ratio 62.8% 64.3% (2.5%) (1.1%)
The Group and the Company are in compliance with all externally imposed capital requirements for the financial years ended 30
September 2012 and 2011.

Etika Annual Report 2012127
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2012
33. Subsequent event
On 6 December 2012, the Company has entered into a Subscription Agreement (the “Agreement”) with Tee Yih Jia Food Manufacturing Pte
Ltd (“TYJFM”). Pursuant to the Agreement, the Company has agreed to allot and issue to TYJFM 75,000,000 new ordinary shares (the “New
Shares”) in the share capital of the Company at issue price of S$0.1998 each per share (the “Subscription”). Completion of the Subscription is
conditional upon, inter alia, receipt of approval in-principle from the SGX-ST for the listing of and quotation of the New Shares on the Main
Board and such approval not being revoked or amended.
Upon completion, TYJFM will hold approximately 12.3% of the enlarged issued share capital of the Company. As such, the Subscription
does not result in a transfer of a controlling intrest in the Company but TYJFM shall be entitled to nominate a person to be appointed on
the board of directors of the Company subject to the internal corporate governance and nominating and appointment procedures within
the Company.
The Subscription will allow the Company to raise a gross proceeds of approximately S$14,985,000. The net proceeds will be used for the
followings:
(i) 50% for capital expenditure; and
(ii) 50% for working capital of the Group covering the daily operating expenditures including payment to suppliers, costs associated with
staff, transportation and promotion expenses.

Etika Annual Report 2012128
Issued and fully paid-up capital : S$ 25,139,068.955
Number of ordinary shares in issue : 536,337,528
Class of shares : Ordinary share
Voting rights : One vote per share
Number of Treasury Shares held : 1,210,000
Number of ordinary shares excluding Treasury Shares : 535,127,528
Percentage of Treasury Shares : 0.226%
(1)
Note :
(1)
Calculated based on 535,127,528 voting shares as at 5 December 2012.
VOTING RIGHTS
Shareholder’s voting rights are set out in Article 65 of the Company’s Articles of Association.
On a show of hands, each Member entitled to vote may vote in person or by proxy or by attorney or in the case of a corporation by a representative
who shall have one vote and upon a poll, every Member present in person or by proxy shall have one vote for every share which he holds or
represents.
SHAREHOLDINGS HELD IN HANDS OF PUBLIC
Rule 723 of the Listing Manual of the Singapore Exchange Securities Trading Limited (“SGX-ST”) requires that at least 10% of the equity securities
(excluding preference shares and convertible equity securities) of a listed company in a class that is listed are at all times held by the public.
Based on the information provided and to the best knowledge of the Directors, approximately 31% of the issued ordinary shares of the Company
are held in the hands of the public as at 5 December 2012 and therefore Rule 723 of the Listing Manual of the SGX-ST is complied with.
DISTRIBUTION OF SHAREHOLDINGS
No. of No. of
Size of Shareholdings shareholders % Shares %
1 – 999 18 1.49 7,648 0.00
1,000 – 10,000 407 33.61 2,683,278 0.50
10,001 – 1,000,000 745 61.52 62,764,870 11.73
1,000,001 and above 41 3.38 469,671,732 87.77
TOTAL 1,211 100.00 535,127,528 100.00
STATISTICS OF SHAREHOLDINGS
AS AT 5 DECEMBER 2012

Etika Annual Report 2012129
STATISTICS OF SHAREHOLDINGS
AS AT 5 DECEMBER 2012
TWENTY LARGEST SHAREHOLDERS

No. Name No. of Shares %
1. TAN YET MENG 60,649,926 11.33
2. MAYBAN NOMINEES (S) PTE LTD 53,400,000 9.98
3. CIMB SECURITIES (SINGAPORE) PTE LTD 52,614,000 9.83
4. HONG LEONG FINANCE NOMINEES PTE LTD 31,617,000 5.91
5. SBS NOMINEES PTE LTD 29,000,000 5.42
6. PHILLIP SECURITIES PTE LTD 24,879,494 4.65
7. KWONG YUEN SENG 24,457,220 4.57
8. UOB KAY HIAN PTE LTD 23,489,000 4.39
9. MAH WENG CHOONG 20,347,224 3.80
10. KHOR SIN KOK 19,100,224 3.57
11. AMFRASER SECURITIES PTE. LTD. 17,126,000 3.20
12. TAN SAN CHUAN 14,809,394 2.77
13. TAN SAN LIN 14,331,394 2.68
14. POK YORK KEAW 9,200,000 1.72
15. DBS NOMINEES PTE LTD 9,063,000 1.69
16. POK YOKE KUNG 7,149,000 1.34
17. PHANG MAH THIANG 5,966,000 1.11
18. HEW MARGARET WYE YOONG OR HEW LEONARD YOKE LEONG 5,600,000 1.05
19. CHUNG CHEE FOOK 4,936,462 0.92
20. DBS VICKERS SECURITIES (S) PTE LTD 3,732,000 0.70
TOTAL 431,467,338 80.63
SUBSTANTIAL SHAREHOLDERS
(as recorded in the Register of Substantial Shareholders)
Direct Deemed Total
Name Interest % interest % Interest %
(1)(2)
Dato’ Jaya J B Tan 90,856,364 16.98 183,199,786 34.23 274,056,150 51.21
(1)(2)
Dato’ Kamal Y P Tan 90,481,072 16.91 183,575,078 34.30 274,056,150 51.21
(1)
Tan Yet Meng 60,649,926 11.33 213,406,224 39.88 274,056,150 51.21
(2)
Mah Weng Choong 28,347,224 5.30 - - 28,347,224 5.30
(2)
Khor Sin Kok 27,400,224 5.12 - - 27,400,224 5.12
Note :-
(1)
Deemed interested in each others shares through the shares held by Dato’ Jaya, Dato’ Kamal and spouse, Ms Tan Yet Meng and children.
(2)
Direct interest includes shares held through nominees.

Etika Annual Report 2012130
NOTICE IS HEREBY GIVEN THAT the Annual General Meeting of Etika International Holdings Limited will
be held at Orchid Room, Basement One, Holiday Inn Singapore Orchard City Centre, 11 Cavenagh Road,
Singapore 229616 on Friday, 25 January 2013 at 10.00 a.m. to transact the following business:-
AS ORDINARY BUSINESS
1. To receive and adopt the Directors’ Report and Audited Financial Statements for the year ended 30 September 2012 and the Auditors’
Report thereon. (Resolution 1)
2. To re-elect the following Directors retiring pursuant to the Company’s Articles of Association :-
(i) Dato’ Kamal Y P Tan (Article 87 and Article 91) (Resolution 2a)
(ii) Mr Teo Chee Seng (Article 91) (Resolution 2b)
3. To re-appoint Mr Mah Weng Choong as a Director of the Company pursuant to Section 153(6) of the Companies Act, Chapter 50.
(Resolution 3)
4. To approve the payment of Directors’ fees of S$216,000 for the financial year ended 30 September 2012 (FY2011: S$208,000).
(Resolution 4)
5. To approve the payment of a final tax exempt 1-tier dividend of 0.3 Singapore cents per share (save and except for shares to be issued or
issued pursuant to the Subscription Agreement between the Company and Tee Yih Jia Food Manufacturing Pte Ltd dated 6 December
2012) for the financial year ended 30 September 2012. (Resolution 5)

6. To re-appoint Messrs BDO LLP as the Auditors of the Company and to authorise the Directors to fix their remuneration.
(Resolution 6)
7. To transact any other ordinary business which may properly be transacted at an Annual General Meeting.
AS SPECIAL BUSINESS
To consider and, if thought fit, to pass the following as Ordinary Resolutions, with or without modifications:-
8. AUTHORITY TO ISSUE SHARES (Resolution 7)
“THAT pursuant to Section 161 of the Companies Act, Chapter 50 and Rule 806 of the Listing Manual of the Singapore Exchange Securities
Trading Limited (“SGX-ST”), the Directors of the Company be authorized and empowered to :-
(a) (i) issue shares in the Company (“shares”) whether by way of rights, bonus or otherwise; and/or
(ii) make or grant offers, agreements or options (collectively “Instruments”) that might or would require shares to be issued, including
but not limited to the creation and issue of (as well as adjustments to) options, warrants, debentures or other instruments
convertible into shares.
at any time and upon such terms and conditions and for such purposes and to such persons as the Directors of the Company may
in their absolute discretion deem fit; and
(b) (notwithstanding the authority conferred by this Resolution may have ceased to be in force) issue shares in pursuance of any
instruments made or granted by the Directors of the Company while this Resolution was in force, provided that :
(i) the aggregate number of shares (including shares to be issued in pursuance of Instruments made or granted pursuant to this
Resolution) to be issued pursuant to this Resolution does not exceed fifty per centum (50%) of the total number of issued shares
(excluding treasury shares) in the capital of the Company (as calculated in accordance with sub-paragraph (ii) below), of which
the aggregate number of shares to be issued other than on a pro-rata basis to shareholders of the Company does not exceed
twenty per centum (20%) of the total number of issued shares (excluding treasury shares) in the capital of the Company (as
calculated in accordance with sub-paragraph (ii) below).
NOTICE OF ANNUAL GENE RAL MEETING

Etika Annual Report 2012131
(ii) (subject to such calculation as may be prescribed by SGX-ST), for the purpose of determining the aggregate number of shares
that may be issued in under sub-paragraph (i) above, the total number of issued shares (excluding treasury shares) in the capital
of the Company at the time of passing this Resolution, after adjusting for:-
(a) new shares arising from the conversion or exercise of any convertible securities;
(b) new shares arising from the exercising share options or vesting of shares awards which are outstanding or subsisting at the
time of the passing of this Resolution; and
(c) any subsequent bonus issue, consolidation or subdivision of shares.
(iii) in exercising the authority conferred by this Resolution, the Company shall comply with the provisions of the Listing Manual of
SGX-ST for the time being in force (unless such compliance has been waived by the SGX-ST) and the Articles of Association for
the time being of the Company; and
(iv) unless revoked or varied by the Company in a general meeting, such authority shall continue in force until the conclusion of
the next Annual General Meeting of the Company or the date by which the next Annual General Meeting of the Company is
required by law to be held, whichever is the earlier.” [See Explanatory Note (a)]

9. AUTHORITY TO GRANT OPTIONS AND ISSUE SHARES (Resolution 8)
“THAT pursuant to Section 161 of the Companies Act, Chapter 50, the Directors of the Company be and are hereby authorized and
empowered to offer and grant options under the Etika Employee Share Option Scheme (“the Scheme”) and to allot and issue from time
to time such number of shares in the capital of the Company as may be required to be issued pursuant to the exercise of options granted
by the Company under the Scheme, whether during the subsistence of this authority or otherwise, the aggregate number of additional
ordinary shares to be issued pursuant to the Scheme shall not exceed fifteen per centum (15%) of the total number of issued shares
(excluding treasury shares) in the capital of the Company from time to time and that such authority shall, unless revoked or varied by the
Company in a general meeting, continue in force until the conclusion of the next Annual General Meeting of the Company or the date by
which the next Annual General Meeting of the Company is required by law to be held, whichever is earlier.” [See Explanatory Note (b)]
10. RENEWAL OF SHARE BUY-BACK MANDATE (Resolution 9)
“THAT:
(a) for the purposes of the Companies Act, Chapter 50, the exercise by the Directors of the Company of all the powers of the Company to
purchase or otherwise acquire ordinary shares in the capital of the Company (the “shares”) not exceeding in aggregate the Prescribed
Limit (as hereafter defined), at such price(s) as may be determined by the Directors of the Company from time to time up to the
Maximum Price (as hereafter defined), whether by way of market purchases (each a “Market Purchase”) on the Singapore Exchange
Securities Trading Limited (“SGX-ST”); or off-market purchases (“Off-Market Purchase”) (if effected otherwise than on the SGX-ST) in
accordance with an equal access scheme(s) (the “Share Buy-back Mandate”), be and is hereby authorized and approved generally
and unconditionally;
(b) unless varied or revoked by the Company in general meeting, the authority conferred on the Directors of the Company pursuant to
the Share Buy-back Mandate may be exercised by the Directors at any time and from time to time during the period commencing
from the date of the passing of this Resolution and expiring on the earlier of:
(i) the date on which the next Annual General Meeting of the Company is held or required by law to be held;
(ii) the date on which the share purchases are carried out to the full extent mandated; or
(iii) the date on which the authority contained in the Share Buy-back Mandate is varied or revoked;
(c) in this Resolution:
“Prescribed Limit” means 10% of the issued ordinary share capital of the Company as at the date of passing of this Resolution unless
the Company has effected a reduction of the share capital of the Company in accordance with the applicable provisions of the
Companies Act, at any time during the Relevant Period, in which event the issued ordinary share capital of the Company shall be
taken to be the amount of the issued ordinary share capital of the Company as altered (excluding any treasury shares that may be
held by the Company from time to time);
NOTICE OF ANNUAL GENE RAL MEETING

Etika Annual Report 2012132
NOTICE OF ANNUAL GENE RAL MEETING
“Relevant Period” means the period commencing from the date on which the last Annual General Meeting of the Company was held
and expiring on the date the next Annual General Meeting of the Company is held or is required by law to be held, whichever is the
earlier, after the date of this Resolution; and
“Maximum Price” in relation to a fully-paid ordinary share in the capital of the Company (a “Share”) to be purchased, means an
amount (excluding brokerage, stamp duties, applicable goods and services tax and other related expenses) not exceeding 105% of
the Average Closing Price in the case of a Market Purchase and not exceeding 120% of the Average Closing Price in the case of an
Off-Market Purchase.
where:
“Average Closing Price” means the average of the closing market prices of a Share over the last five market days, on which the Shares
are transacted on the SGX-ST, immediately preceding the date of the Market Purchase by the Company, and deemed to be adjusted
in accordance with the rules of the SGX-ST, for any corporate action that occurs after the relevant five-day period;
“Day of the Making of the Offer” means the day on which the Company announces its intention to make an offer for the purchase of
Shares from Shareholders, stating the purchase price (which shall not be more than the Maximum Price calculated on the foregoing
basis) for each Share; and

(d) any of the Directors of the Company be and are hereby authorised to complete and do all such acts and things (including executing
such documents as may be required) as he may consider expedient or necessary to give effect to the transactions contemplated by
this Resolution.” [See Explanatory Note (c)]
BY ORDER OF THE BOARD
S Surenthiraraj @ S Suressh
Kok Mor Keat
Company Secretaries
Singapore
4 January 2013
Explanatory Notes on Special Business to be transacted
(a) Ordinary Resolution 7, if passed, will enable the Directors to issue shares in the Company up to 50% of the total number of issued shares
excluding treasury shares in the capital of the Company (in the case of issuance other than on a pro-rata basis to existing shareholders,
such aggregate number of shares not to exceed 20% of the total number of issued shares excluding treasury shares in the capital of the
Company) for such purposes as they consider to be in the interests of the Company.
(b) Ordinary Resolution 8, if passed, will empower the Directors of the Company, from the date of the above Meeting until the next Annual
General Meeting, to offer and grant options under the Etika Employee Share Option Scheme (“the Scheme”) and to allot and issue shares
in the Company of up to a number not exceeding in total fifteen per cent. (15%) of the total number of issued shares excluding treasury
shares of the Company from time to time pursuant to the exercise of the options under the Scheme.
(c) Ordinary Resolution 9, if passed, will empower the Directors from the date of the above Meeting until the next Annual General Meeting to
repurchase ordinary issued shares of the Company by way of market purchases or off-market purchases of up to 10% of the total number
of issued shares (excluding treasury shares) in the capital of the Company at the Maximum Price. Information relating to this proposed
Resolution is set out in the Circular attached.
NOTES:-
1. A member of the Company entitled to attend and vote at the Annual General Meeting is entitled to appoint not more than two proxies
to attend and vote in his stead. A proxy need not be a member of the Company and where there are two proxies, the number of shares
to be represented by each proxy must be stated.
2. If the appointor is a corporation, the instrument appointing a proxy must be executed under seal or the hand of its duly authorized officer
or attorney.
3. The instrument appointing a proxy must be deposited at the office of the Company’s Share Registrar at 50 Raffles Place, Singapore Land
Tower #32-01, Singapore 048623 not less than forty-eight (48) hours before the time for holding the Annual General Meeting.

Etika Annual Report 2012133
NOTICE IS HEREBY GIVEN THAT the Share Transfer Books and Register of Members of Etika International Holdings Limited (the “Company”)
will be closed on 8 February 2013 for the preparation of dividend warrants.
Duly completed registrable transfers of shares
(1)
received by the Company’s Share Registrar, Boardroom Corporate & Advisory Services Pte
Ltd, 50 Raffles Place, Singapore Land Tower #32-01, Singapore 048623 up to 5.00 p.m. on 7 February 2013 will be registered to determine
shareholders’ entitlements to the said dividend. Members whose Securities Accounts with The Central Depository (Pte) Limited are credited
with shares
(1)
at 5.00 p.m. on 7 February 2013 will be entitled to the proposed dividend.
Payment of the dividend, if approved by the members at the Annual General Meeting to be held on 25 January 2013, will be made on
28 February 2013.
Note:
(1)
New shares to be issued or issued pursuant to the Subscription Agreement between the Company and Tee Yih Jia Food Manufacturing Pte Ltd dated 6 December 2012 are not entitled to this dividend.
NOTICE OF BOOKS CLOSURE

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ETIKA INTERNATIONAL HOLDINGS LIMITED
Company Registration No: 200313131Z
(Incorporated in the Republic of Singapore)
proxy form
ANNUAL GENERAL MEETING
IMPORTANT
1. For investors who have used their CPF monies to buy shares of Etika International Holdings
Limited, the Annual Report 2012 is forwarded to them at the request of their CPF Approved
Nominees and is sent solely FOR INFORMATION ONLY.
2. This Proxy Form is not valid for use by CPF Investors and shall be ineffective for all intents and
purposes if used or purported to be used by them.
3. CPF Investors who wish to attend the Annual General Meeting as an observer must submit their
requests through their CPF Approved Nominees in accordance with their instructions within
the timeframe specified.
4. CPF investors who wish to vote must submit their voting instructions to their CPF Approved
Nominees to enable them to vote on their behalf.
Number of shares held
I/We,__________________________________________________________________________________________________________________________
of ____________________________________________________________________________________________________________________________
being a member/members of ETIKA INTERNATIONAL HOLDINGS LIMITED (the “Company”), hereby appoint
NRIC/ Proportion of
Passport No. Shareholdings (%)
and/or (delete as appropriate)
NRIC/ Proportion of
Passport No. Shareholdings (%)
as my/our proxy/proxies to attend and to vote for me/us on my/our behalf and, if necessary to demand a poll, at the Annual General Meeting (“AGM”) of the
Company to be held on 25 January 2013 at 10.00 a.m. and at any adjournment thereof. I/We direct my/our proxy/proxies to vote for or against the Resolutions to
be proposed at the AGM as indicated hereunder. If no specific direction as to voting is given or in the event of any item arising not summarised below, the proxy/
proxies will vote or abstain from voting at his/their discretion. If no person is named in the above boxes, the Chairman of the AGM shall be my/our proxy to vote,
for or against the Resolutions to be proposed at the AGM as indicated hereunder for me/us and on my/our behalf at the AGM and at any adjournment thereof.
To be used on a To be used in the
show of hands event of a Poll
No. Resolutions Relating To Number of Number of
For * Against * Votes Votes
For ** Against **
1 Adoption of Directors’ Reports and Financial Statements for year
ended 30 September 2012
2a Re-election of Dato’ Kamal Y P Tan as Director
2b Re-election of Mr Teo Chee Seng as Director
3 Re-appointment of Mr Mah Weng Choong as Director
4 Approval of payment of Directors’ fees
5 Approval of payment of final tax exempt 1-tier dividend
6 Re-appointment of Messrs BDO LLP as auditors and authorize
Directors to fix their Remuneration
7 Authority to allot and issue new shares
8 Authority to allot and issue shares under Etika Employee
Share Option Scheme
9 Renewal of Share Buy-back Mandate
* Please indicate your vote “For” or “Against” with a “X” within the box provided.
** If you wish to exercise all your votes “For” or “Against”, please indicate with a “X” within the box provided. Alternatively, please indicate the number of votes as appropriate.
Dated this day of 2013.
Total Number of Shares held
CDP Register
Register of Members
Signature(s) of Member(s) or,
Common Seal of Corporate Shareholder IMPORTANT: PLEASE READ NOTES OVERLEAF
Name Address
Name Address

Notes :
1. Please insert the total number of Shares held by you. If you have Shares entered against your name in the Depository Register (as defined
in Section 130A of the Companies Act, Cap. 50 of Singapore), you should insert that number of shares. If you have Shares registered in your
name in the Register of Members, you should insert that number of Shares. If you have Shares entered against your name in the Depository
Register and Shares registered in your name in the Register of Members, you should insert the aggregate number of Shares entered against
your name in the Depository Register and registered in your name in the Register of Members. If no number is inserted, the instrument
appointing a proxy or proxies shall be deemed to relate to all the Shares held by you.
2. A member of the Company entitled to attend and vote at a meeting of the Company is entitled to appoint one or two proxies to attend and
vote on his behalf. Such proxy need not be a member of the Company.
3. Where a member appoints two proxies, the appointments shall be invalid unless he specifies the proportion of his shareholding (expressed
as a percentage of the whole) to be represented by each proxy.
4. The instrument appointing a proxy or proxies must be deposited at the office of the Company’s Share Registrar at 50 Raffles Place, Singapore
Land Tower #32-01, Singapore 048623 not less than forty-eight (48) hours before the time appointed for the Annual General Meeting.
5. The instrument appointing a proxy or proxies must be under the hand of the appointor or his attorney duly authorised in writing. Where
the instrument appointing a proxy or proxies is executed by a corporation, it must be executed either under its Seal or under the hand of an
officer or attorney duly authorised.
6. Where an instrument appointing a proxy is signed on behalf of the appointor by an attorney, the letter or power of attorney (or other
authority) or a duly certified copy thereof must (failing previous registration with the Company) be lodged with the instrument of proxy,
failing which the instrument may be treated as invalid.
7. A corporation which is a member may by resolution of its directors or other governing body authorise such person as it thinks fit to act as its
representative at the AGM, in accordance with Section 179 of the Companies Act, Cap.50.
General:
The Company shall be entitled to reject this instrument appointing a proxy or proxies if it is incomplete, improperly completed or illegible or
where the true intentions of the appointor are not ascertainable from the instructions of the appointor specified in the instrument appointing
a proxy or proxies. In addition, in the case of a member whose Shares are entered in the Depository Register, the Company may reject any
instrument appointing a proxy or proxies lodged if the member, being the appointor, is not shown to have Shares entered against his name in
the Depository Register as at forty-eight (48) hours before the time appointed for holding the Annual General Meeting, as certified by The Central
Depository (Pte) Limited to the Company.

www.etika-intl.com
ETIKA INTERNATIONAL HOLDINGS LIMITED
SGX Centre II , #17-01, 4 S henton Way, S ingapore 068807
Tel : (65) 6361 9883 Fax : (65) 6538 0877