The income from export of that year must not be less than revenues from the averaged of export sales over the previous three years
period except for the first two years.
Moreover, the promoted products in the fifth plant from the date of income earning, will be exempted on business tax 90%
of normal rate for the period of 5 years, and exempted on corporate income tax for 5 years (for export sales only) and 6 years of
each type of product.
After the promotion is expired, the company will be granted corporate income tax reduction at 50% of normal rate for 5 years.
The shareholders will gain benefit from tax-exempted on dividend received from the company (from the stated exemptions).
The dividend will not be levied over the period of the company's income tax exemption.
20. SEGMENT FINANCIAL INFORMATION
The company engages in manufacturing of floor, wall tile, kitchen equipment and supplementary food. The details relating to
the company's operations are segmented according to business for the year ended December 31, 1999 and 1998, as follow :
Baht
1999
Floor and wall tile Sanitary product Other Total
Business Business
Sales - net 1,227,899,586.94 27,740,098.40 3,409,214.37 1,259,048,899.71
Less Cost of sales (1,139,781,347.22) (20,015,644.82) (1,172,210.20) (1,160,969,202.24)
----------------- --------------- -------------- ------------------
Gross profit 88,118,239.72 7,724,453.58 2,237,004.17 98,079,697.47
----------------- --------------- -------------- ------------------
Profit (Loss) from operation (150,780,245.53)
Equity gain (loss) on investments - net 280,963.31
Interest expenses (147,056,606.95)
------------------
Net profits (loss) (297,555,889.17)
------------------
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Baht
1998
Floor and wall tile Sanitary product Other Total
Business Business
Sales - net 1,271,596,896.98 7,948,625.32 0.00 1,279,545,522.30
Less Cost of sales (1,178,509,107.85) (7,008,685.91) 0.00 (1,185,517,793.76)
----------------- --------------- -------------- ------------------
Gross profit 93,087,789.13 939,939.41 0.00 94,027,728.54
----------------- --------------- -------------- ------------------
Profit (Loss) from operation 143,545,277.03
Equity gain (loss) on investments - net (37,456,859.14)
Interest expenses (160,106,026.79)
------------------
Net profits (loss) (54,017,608.90)
------------------
21. CONTINGENT LIABILITIES
As at December 31, 1999 and 1998, the company has contingent liabilities for bank's letter of guarantee approximately
Baht 11.7 million and Baht 9.7 million, respectively. In 1999, the company has unused letter of credit of Baht 4.4 million.
22. RECLASSIFICATION ACCOUNTS
The accounts included in the financial statements for the year 1998 have been reclassified for a comparison purpose with
those for the year 1999.
23. Y2K ISSUE ON THE COMPANY'S OPERATION (UNAUDITED)
The company purchased software used for management and report preparation from the vendors which have long experience
in develop and install computer program. The company is testing the aforementioned program which the vendor confirmed that the
issue will not create Y2K problem. Although the company expects to solve its computer system within the year 1999, the
company is concerned that its trading company could not solve the issues in time. However, the company expects that there is no
materiality on the company's operation of which cannot be presently determined.
24. EFFECTS OF CHANGE IN ACCOUNTING METHOD
In 1999, The company has changed the accounting method of recording of factory maintenance expenses from deferred
expenses to operating expenses in their occurring period to conform with the new accounting standards of the Framework and
interpretation of Impairment of assets - expenses of undeveloping and developing businesses have been recorded as assets.
The company has retroactively adjusted the financial statements for the year ended 1998 by presenting the cumulative effect from
change in accounting policy in both 1999 and 1998.
From the aforementioned change, in 1999 resulted decreasing in net assets in amount of Baht 4,049,139.62 and Baht
3,191,805.92 and decreasing in net loss of Baht 811,807.44 and Baht 2,135,704.27 in 1999 and 1998, respectively.
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25. OTHER
25.1 The company was registered as Public Company Limited.
25.2 The company's head office is located at 65 Chamnan Phenjati Business Center, 29th Fl., Rama 9 Rd.,Huaykwang
Bangkok 10320.
Branch : 1st site at 54/1 Suwannasorn Road, Tumbol Kokeyae, Nongkhae District, Saraburi 18230.
: 2nd site at 54 Moo1, Tumbol Phaitum, Nongkhae District, Saraburi 18230.
25.3 The company engages in Producing and Distributing of floor, wall tile, kitchen equipment and supplementary food.
25.4 The company has staff in the amount of 1,595 and 1,365 in 1999 and 1998, respectively.
25.5 Staff expenses are Baht 163,635,025.22 and Baht 176,338,507.19 in 1999 and 1998, respectively.
25.6 Deferred expenses are Baht 1,586,254.48 and Baht 1,542,143.28 in 1999 and 1998, respectively.
