3.2 Allowance for Doubtful Accounts
The company provides allowance for doubtful accounts equal to the amount of expected uncollectible receivable
which are based on management evaluation of ability to pay of each receivable.
3.3 Inventory Valuation
Finished goods and work in process are valued at cost by the average basis or net realizable value. Raw materials
and supplies are valued at cost by the average basis.
3.4 Depreciation and Amortization
Property, plant and equipment are depreciated on a straight-line method over the estimated useful lives of the
assets as follows :-
Building 20 years
Machinery 5-15 years
Other fixed assets 5 years
Deferred expense are suspended base on the benefit basis and amortized on a straight-line basis within 1-3 years.
Concession fee is stated at net cost of amortization on a concession period.
Excess of cost over book value of investments in associated companies assumes as goodwill is amortized on a
straight-line basis within 10 years.
3.5 Transactions in foreign currencies
The company records its transactions in foreign currencies converting into Thai Baht by using the exchange rates
ruling on the transaction dates. The outstanding balances of accounts in foreign currencies as at the balance sheet's date are
converted into Thai Baht by using the exchange rates ruling on the same day.
Gains or Loss on exchange are taken into income or expense as incurred.
- 2 -
3.6 Investments
For the year ended December 31, 1999, the company has adopted the Thai Accounting Standard No.40 Accounting
for Investments in Debt and Equity Securities. The adoption of this standard has not been adjusted to the prior financial
statements.
3.6.1 Investments in related companies
Investments in associated companies are recorded under the equity basis.
3.6.2 Investments in other companies
Securities available for sales are carried at fair value less allowance for impairment of investments (if any).
The differences between book values and fair value are presented as unrealized gain or loss in the shareholders' equity.
The loss from impairment will be recognized as expenses when there is evidence of impairment.
Other investments are stated at cost, less allowance for impairment in value (if any)
Cost of short-term and long-term investments sold during the period were computed by the weighted average
method.
3.7 Capitalization of Interest
Borrowing costs are capitalized as cost of assets that the company has incurred borrowing cost on assets that required a
period of time to get them ready for sale. Capitalization of borrowing cost will stop when such assets are ready for their
intended use.
3.8 Corporate Income Tax
The company recognized total corporate income tax as expenses in the occurring period.
3.9 Impairment of Assets
In 1999, the company has reviewed the impairment of assets-land, building and equipment, including intangible assets
whenever events or changes indicated that the carrying amount of an asset exceeds its recoverable amount. The company
will consider the impairment for each asset item or each asset unit generating cash flow, whenever is practical.
In case of the carrying amount of an asset exceeds its recoverable amount, the company will recognize an impairment
loss in the statement of income for the period. The company will reverse the impairment lose whenever there is an indication
that there is no longer impairment or reduction in impairment by recording as other income.
3.10 Earnings (Loss) per share
Earnings (Loss) per share are determined by dividing net profit (loss) by the number of shares outstanding at the end
of the period.
- 3 -
4. CASH IN HAND AND AT BANKS
2000 Baht 1999
Cash 171,652.60 111,575.00
Current accounts 157,507.40 4,666,088.32
Savings deposit 10,033,867.12 3,220,244.74
Total 10,363,027.12 7,997,908.06
5. SHORT - TERM INVESTMENTS
2000 Baht 1999
Cash at banks 3,280,192.97 3,280,192.97
Temporary investments 32,481,386.50 33,181,761.50
Total 35,761,579.47 36,461,954.47
Temporary investments consist of :
Baht
2000
Available for sale Other securities Total
Equity securities 1,431,100.00 0.00 1,431,100.00
Equity securities - investment units 0.00 31,050,286.50 31,050,286.50
Total 1,431,100.00 31,050,286.50 32,481,386.50
1999
Available for sale Other securities Total
Equity securities 2,131,475.00 0.00 2,131,475.00
Equity securities - investment units 0.00 31,050,286.50 31,050,286.50
Total 2,131,475.00 31,050,286.50 33,181,761.50
6. ACCOUNTS AND NOTES RECEIVABLE
As of March 31, 2000 and December 31, 1999, the company's delinquent accounts receivable amount of 141and 145
receivables, respectively, classified by aging are as follows :
2000 Baht 1999
Over 3 months - 6 months 27,806,542.67 19,376,525.78
Over 6 months - 12 months 4,039,526.53 830,734.15
Over 12 months 20,360,856.24 16,289,310.46
Total 52,206,925.44 36,496,570.39
As of March 31, 2000 and December 31, 1999, the company provided the allowance for doubtful accounts amount of Baht
28,131,933.79.
- 4 -
7. INVENTORIES
2000 Baht 1999
Finished goods 230,283,986.41 301,874,473.13
Work in process 24,708,342.96 16,061,781.81
Raw materials 72,906,233.67 97,262,836.30
Supply used 43,972,502.27 44,950,884.01
Goods in transit 2,377,721.94 3,203,404.35
Total 374,248,787.25 463,353,379.60
8. INVESTMENTS IN RELATED COMPANIES
2000 Baht 1999
Investments in associated companies 15,889,147.06 15,589,149.95
Long - term investment 10,250,000.00 10,250,000.00
Total 26,139,147.06 25,839,149.95
8.1 Investments in associated companies consist of :
2000
Type of Paid-up Holding Cost Equity
Business Capital % Method Method
Baht Baht Baht
Associated companies
Tekno Cer S.R.L
Co., Ltd. Supplier 428,000.00 45.00 192,600.00 192,600.00
Cermas Co., Ltd. Sale of feldspar and soil 8,000,000.00 21.55 1,224,500.00 0.00
UMI Property Co., Ltd. Real estate 150,000,000.00 37.57 56,350,000.00 0.00
Ruampat Ceramic
Co., Ltd. Ceramic Agent 20,000,000.00 49.00 9,800,000.00 15,696,547.06
Total investments in associated companies 67,567,100.00 15,889,147.06
- 5 -
1999
Type of Paid-up Holding Cost Equity
Business Capital % Method Method
Baht Baht Baht
Associated companies
Telno Cer S.R.L
Co., Ltd. Supplier 428,000.00 45.00 192,600.00 192,600.00
Cermas Co., Ltd. Sale of feldspar and soil 8,000,000.00 21.55 1,224,500.00 0.00
UMI Property Co., Ltd. Real estate 150,000,000.00 37.57 56,350,000.00 0.00
Ruampat Ceramic
Co., Ltd. Ceramic Agent 20,000,000.00 49.00 9,800,000.00 15,396,549.95
Total investments in associated companies 67,567,100.00 15,589,149.95
Investment in Tekno Cer S.R.L. Co., Ltd. is valued at cost method, because of insufficient information to state under equity
method. Such investment has no material to the position and the results of company's operation.
For the three associated companies financial statements for the three months ended March 31, 2000 and for the year
ended December 31, 1999, brought into the computation of investment under equity method, were taken from unaudited
financial statements by other auditors.
8.2 Long - term investments were represented as other investments consist of :-
Type of Paid-up Holding Cost
Business Capital % Method
Baht Baht
Other companies
UMI-Laufen
Sanitaryware Ltd. Producer of Sanitaryware 430,000,000.00 11.04 33,065,650.21
Less Provision for diminution in value of investments (33,065,650.21) 0.00
Siam Art Ceramic Co., Ltd. Seller of Ceramic 110,000,000.00 7.50 8,250,000.00
Surf Dynamics Co., Ltd. Water Sports Equipment 14,000,000.00 14.28 2,000,000.00
Total investments in other companies 10,250,000.00
- 6 -
1999
Type of Paid-up Holding Cost
Business Capital % Method
Baht Baht
Other companies
UMI-Laufen
Sanitaryware Ltd. Producer of Sanitaryware 430,000,000.00 11.04 33,065,650.21
Less Provision for diminution in value of investments (33,065,650.21) 0.00
Siam Art Ceramic Co., Ltd. Seller of Ceramic 110,000,000.00 7.50 8,250,000.00
Surf Dynamics Co., Ltd. Water Sports Equipment 14,000,000.00 14.28 2,000,000.00
Total investments in other companies 10,250,000.00
Investment in UMI-Laufen Sanitaryware Ltd. had net aggregate book value lower than cost approximately of Baht 251.70
million as at March 31, 2000, according to the latest audited financial statements. As at March 31, 2000, the company provided
the allowance for diminution in value of investments of Baht 33,065,650.21 (In 1999, this amount was Baht 33,065,650.21).
The company believes that the diminution in value of investment is temporary and its operation will be recovered in the near
future. In addition, the meeting will be for the increasing registered capital from Baht 430 million to Baht 550 million.
- 7 -
8.3 The company has not prepared the consolidated financial statements for the group of businesses under the certain companys' control
in accordance with the Thai Accounting Standard No.44 Consolidated Financial Statement and Accounting for Investments in Subsidiaries.
Since the mentioned companies cannot completely prepare the financial statements for the three months ended March 31, 2000 as follows:
Company Paid-up Capital Holding Relationship Type of business The latest financial statement (In Million Baht)
(In Million Baht) Direct Indirect Period Total Net Net Profit Retained earnings
Assets Assets (loss) (Deficit)
UMI Property Co., Ltd. 150 37.57% 41.10% Shareholders and Real estate December 31, 98 326.91 30.75 (74.50) (119.25)
directors
Ruampat Ceramic Co., Ltd. 20 49.00% 0.001% Shareholders and Ceramic Agent December 31, 98 102.98 28.92 0.04 8.92
directors
UMI - Laufen Sanitaryware Ltd. 430 11.04% 23.02% Shareholders and Producer of December 31, 98 905.47 (251.70) (154.25) (681.70)
directors Sanitaryware
Siam Art Ceramic Co., Ltd. 110 7.50% 54.96% Shareholders and Seller of Ceramic December 31, 99 200.54 95.91 (2.88) (31.68)
directors
1,535.90 (96.12) (231.59) (823.71)
9. DEPOSITS WITH COMMITMENT
As at March 31, 2000 and December 31, 1999, fixed deposit of Baht 30,000,000.00 is used as collateral for bank overdraft and loans from bank as mentioned in note no.13, and
for bank's issuance of letter of guarantee to the Metropolitan Power Authority for electricity charge.
- 8 -
10. PROPERTY, PLANT AND EQUIPMENT - NET
Balance as at Increased and decreased transactions Balance as at
December 31, 1999 during the year March 31, 2000
Increase Sales and Transfer
Cost
Land 154,135,301.52 0.00 0.00 154,135,301.52
Appraisal surplus of land 207,515,676.00 0.00 0.00 207,515,676.00
Building 617,199,532.43 190,075,577.39 0.00 807,275,109.82
Machinery 1,861,465,327.06 1,621,332.93 0.00 1,863,086,659.99
Tools 86,736,033.94 384,457.31 0.00 87,120,491.25
Furniture and office equipment 50,989,559.16 21,227,336.88 0.00 72,216,896.04
Vehicles 25,832,203.67 589,090.90 0.00 26,421,294.57
Office improvement and fixture 29,156,439.96 1,048,173.00 0.00 30,204,612.96
Total 3,033,030,073.74 214,945,968.41 0.00 3,247,976,042.15
Less Accumulated depreciation
Building 254,077,610.40 9,033,475.09 0.00 263,111,085.49
Machinery 1,669,725,652.59 33,084,000.70 0.00 1,702,809,653.29
Tools 74,380,064.05 1,398,445.14 0.00 75,778,509.19
Furniture and office equipment 44,848,315.39 1,802,698.81 0.00 46,651,014.20
Vehicles 20,900,081.26 666,595.14 0.00 21,566,676.40
Office improvement and fixture 25,700,788.09 737,721.10 0.00 26,438,509.19
Total 2,089,632,511.78 46,722,935.98 0.00 2,136,355,447.76
Net 943,397,561.96 168,223,032.43 0.00 1,111,620,594.39
Less Provision for loss from
impairment of building 16,299,397.74 7,245,977.39 0.00 23,545,375.13
Total 927,098,164.22 160,977,055.04 0.00 1,088,075,219.26
Project under construction - expansion
part at 7th plant
Building under construction 190,075,577.39 0.00 190,075,577.39 0.00
Machinery, furniture and equipment
under installation 177,876,090.75 0.00 20,124,294.13 157,751,796.62
Total 367,951,668.14 0.00 210,199,871.52 157,751,796.62
Less Provision for loss from
impairment of assets 7,245,977.39 0.00 (7,245,977.39) 0.00
Net 360,705,690.75 0.00 202,953,894.13 157,751,796.62
Property, plant and equipment-net 1,287,803,854.97 160,977,055.04 202,953,894.13 1,245,827,015.88
- 9 -
As of March 31, 2000 and March 31, 1999, the depreciation for building, machinery and equipment in operating was Baht
46,722,935.98 and Baht 43,575,309.60, respectively.
Land including its building and part of machinery are mortgaged as collateral for bank overdrafts, loans from banks and
long-term loans as mentioned in notes 13 and 14.
In 1999, the company reappraise the land by Charterred Property Consultants Co., Ltd., an independent appraiser, according
to the report dated on February 28, 2000. The current appraisal value of land is devalued amount of Baht 58,586,856.00.
After deducting to the appraisal surplus of land of Baht 266,102,532.00 in 1996, the remaining balance of the appraisal surplus
of land would be Baht 207, 515,676.00 shown in the shareholders' equity.
The company recorded interest expense incurred from loans to purchase new machinery as a part of cost of machinery
amounting to Baht 12,725,821.92 for three months ended March 31, 1998.
In the third quarter of the year 1998, the company has suspended the project under construction of expansion part of
the seventh plant causing from the volatility of economy as mentioned in note 1 and the slowdown in growth of real estate
business. However, the company expects to take benefit from such construction project in the future when the economic is
recovered.
11. DEPOSIT
2000 Baht 1999
Deposit for purchasing machinery 0.00 0.00
Other deposits 1,229,250.00 773,400.00
Total 1,229,250.00 773,400.00
Deposit for purchasing machinery from overseas have value at LIT 32,000 million or Baht 672 million. The company has
already paid the deposit at 15% of machinery value or amount of Baht 45,782,250.00 (LIT 4,800 million) recorded such amount
in deposit for machinery. Due to the economic volatility as stated in note 1, therefore the company has suspended to purchase
the machinery. In 1999, the company has recorded loss from non-refundable deposits shown as expenses in the statements of
income.
12. OTHER ASSETS
2000 Baht 1999
Advance payment - share investment 1,251,900.00 1,251,900.00
Concession fee - net 550,887.70 586,979.08
Deferred expenses 1,751,661.85 2,128,333.34
Total 3,554,449.55 3,967,212.42
13. BANK OVERDRAFTS AND LOANS FROM BANK
2000 Baht 1999
Bank overdrafts 81,220,678.37 57,940,537.29
Loans from banks 364,565,508.24 363,680,008.24
Total 445,786,186.61 421,620,545.53
(more)
