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As at March 31, 2000 and December 31, 1999, the company had overdraft lines of Baht 122 million at the interest of
8.50-9.25% and 8.75-11.50% per annum and the interest rate of loans from banks are applied of 10.25-14.50% per annum and
10.25-12.25% per annum, respectively.
Bank overdrafts and loans from bank are guaranteed by fixed deposits as stated in note 9, and by mortgaging land, building
and part of machinery as collateral, as described in note 10.
14. LONG-TERM LIABILITIES
2000 Baht 1999
Long-term loans of Baht 1,000 million 280,000,000.00 280,000,000.00
Long-term loans of US$ 20 million 759,256,000.00 754,196,000.00
Less Current portion of long - term debt (955,256,000.00) (781,066,600.00)
Default on current portion of long-term debt (84,000,000.00) 0.00
Total 0.00 253,129,400.00
In September 1997, the company had long-term loans from banks and financial institutions amounting to Baht 1,000 million
at the interest rate of 11.00-13.75% and MLR+0.5% per annum and US$ 20 million at the interest rate of SIBOR+1.75%
and LIBOR+2.5% per annum. Such long-term loans are guaranteed by mortgaging land, building and part of machinery (in note
10) and assigned the benefits received from insurance policy to lenders which has certain limitation specified in the agreements.
On December 24, 1997, the company entered into the amendment of loans agreement by reducing the amount of loans
to Baht 280 million which equal to the gradually withdrawn with the average interest rate of bank's standard plus 3% and 4%
per annum. The repayment of principal was made on semi-annually through 10 installments of Baht 28 million each, beginning
on September 30, 1998.
On March 6, 1998, the company entered into the amendment of loans agreement of US$ 20 million by changing interest
rate to LIBOR/SIBOR+4.5% per annum. The repayment of loans was made on semi-annually through 6 installments of US$ 3.4
million each, beginning on September 2, 1998.
On September 8, 1998, the bank proposed to extend term of principal repayment granted for one year by calculating interest
of LIBOR/SIBOR+ 6% per annum. These extension resulted the first installment due in September 1999. However, until the date
of this report the company has not yet made such payments upon the new agreement and the company is under the process
of debt restructuring
15. UNREALIZED GAIN (LOSS) FROM CHANGING FAIR VALUE OF INVESTMENTS
2000 Baht 1999
Beginning of the period 1,173,000.00 0.00
Changes during the period (700,375.00) 1,173,000.00
End of the period 472,625.00 1,173,000.00
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16. LEGAL RESERVE
According to the Public Companies Act, the company has appropriated its reserve as a legal reserve not less than 5% of the
annual net profit deducted by the total accumulated deficit brought forward (if any) until the reserve reaches an amount not less
than 10% of the authorized share capital.
17. PROVIDENT FUND
The company established contributory registered provident fund in accordance with the Provident Fund Act B.E. 2530 (1987).
18. TRANSACTIONS WITH RELATED COMPANIES
The financial statements include transactions incurred with related companies. These transactions are recorded based on a
mutually determined basis in the ordinary commercial transaction. The intercompany significant transactions with related companies
during the period are as follows:
March 31, 2000 March 31, 1999 December 31, 1999
Accounts receivable 179,712,169.32 138,173,497.97
Accounts payable 11,628,478.23 25,773,715.99
Purchases - net 21,657,641.84 15,454,305.62
Sales - net 150,165,316.95 83,103,077.93
19. PROMOTIONAL PRIVILEGES
For the company's production expansion, the company was granted certain rights and privileges on production of the fifth
plant as a promoted industry under the Investment Promotion Act. B.E. 2520 including exemption from customs duty and
business tax on imported raw materials and supplies (5 year for export) and has also obtained a permission to deduct 5% of
the increased income over the previous year, derived from export for 10 years, commencing from the date of income earning.
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 three months ended March 31, 2000 and 1999, as follow :
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Baht
March 31, 2000
Floor and wall tile Sanitary product Other Total
Business Business
Sales - net 364,001,319.95 15,303,866.02 1,203,631.42 380,508,817.39
Less Cost of sales (341,522,816.63) (11,568,405.25) (554,885.65) (353,646,107.53)
Gross profit 22,478,503.32 3,735,460.77 648,745.77 26,862,709.86
Profit (Loss) from operation (26,590,103.08)
Equity gain (loss) on investments - net 299,997.11
Interest expenses (37,086,371.10)
Net profits (loss) (63,376,477.07)
Baht
March 31, 1999
Floor and wall tile Sanitary product Other Total
Business Business
Sales - net 262,683,685.74 1,471,803.20 0.00 264,155,488.94
Less Cost of sales (274,225,311.60) (1,421,449.94) 0.00 (275,646,761.54)
Gross profit (11,541,625.86) 50,353.26 0.00 (11,491,272.60)
Profit (Loss) from operation (67,743,926.24)
Equity gain (loss) on investments - net (237,344.01)
Interest expenses (38,565,431.05)
Net profits (loss) (106,546,701.30)
21. CONTINGENT LIABILITIES
As at March 31, 2000 and December 31, 1999, the company has contingent liabilities for bank's letter of guarantee
approximately Baht 11.7 million. In 1999, the company has unused letter of credit of Baht 4.4 million.
22. RECLASSIFICATION ACCOUNTS
Certain accounts included in the financial statements for the year 1999 have been reclassified for a comparison purpose with
those for the year 2000.
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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 undeveloped and developing businesses have been recorded as assets.
The company has retroactively adjusted the financial statements for the three months ended March 31, 1999 that have been taken
for comparative purpose.
From the aforementioned change in accounting policy, consequently net assets would decrease by Baht 4,049,139.62 as
of December 31, 1999 and net loss would increase by Baht 771,219.80 for the three months ended March 31, 1999.
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 1,600 as at March 31, 2000 and December 31, 1999.
