THE UNION MOSAIC INDUSTRY PUBLIC COMPANY LIMITED
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
UNAUDITED/REVIEWED ONLY
Parent Company
2000 Baht 1999
(Adjustment)
Cash flows from operating activities
Net profit (loss) (125,906,047.60) (163,027,570.82)
Items to reconcile net profit (loss) to cash receipt (disbursement) from operating activities
Depreciation 93,017,929.01 87,493,748.99
Amortization of other assets 723,808.42 72,182.76
Unappropriated net (gain) loss of subsidiaries under equity method 2,670,511.71 18,187,601.28
Unrealized (gain) loss on exchange rate 32,080,934.12 2,166,082.56
(Gain) loss from unused assets 1.00 0.00
(Gain) loss from increment of securities 0.00 (1,768,971.91)
(Gain) loss from transfer of investments (401,310.76) 0.00
(Gain) loss from disposal of property, plant and equipment 0.00 12,311.75
(Gain) loss from sales of securities 0.00 (1,419,245.13)
Profit from operations before changes in operating assets and liabilities 2,185,825.90 (58,283,860.52)
Changes in operating assets (increase) decrease
Short - term investments 0.00 2,727,290.17
Accounts and notes receivable (69,724,054.33) (41,341,702.34)
Short - term loans 0.00 11,358.00
Inventories 49,153,235.00 69,968,833.22
Other current assets 2,948,083.72 (3,738,113.09)
Deposits (726,850.00) 121,385.53
Other assets (21,912.00) (510,073.35)
Changes in operating liabilities increase (decrease)
Accounts payable 18,852,379.48 86,353,891.19
Accrued expenses 40,404,756.46 6,414,192.22
Other current liabilities 2,402,028.63 627,023.04
Net cash provided by (used in) operating activities 45,473,492.86 62,350,224.07
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Parent Company
2000 Baht 1999
(Adjustment)
Cash flows from investing activities
Cash received from disposal of property, plant and equipment 0.00 2,000.00
Cash paid for purchased investments (20,000,000.00) 0.00
Payment of property, plant and equipment (7,207,581.56) (4,110,470.96)
Net cash provided by (used in)investing activities (27,207,581.56) (4,108,470.96)
Cash flows from financing activities
Bank overdrafts and loans from banks increase (decrease) 26,506,762.15 (47,793,167.14)
Net cash provided by (used in) financing activities 26,506,762.15 (47,793,167.14)
Cash and cash equivalents increase (decrease) 44,772,673.45 10,448,585.97
Cash and cash equivalents items at January 1, 7,997,908.06 687,153.00
Cash and cash equivalents items at June 30, 52,770,581.51 11,135,738.97
Supplemental disclosures of cash flow information :
1. Cash paid during the year for :
Interest expenses 40,480,723.65 75,252,922.69
2. For the purpose of preparing the statement of cash flow, cash and cash equivalent items include cash in hand and cash at
banks which are dued within 3 months.
The statements of cash flows for the consolidated financial statements ended June 30, 2000 and 1999, have not been prepared
due to insufficient information.
Notes to financial statements are parts of these financial statements.
THE UNION MOSAIC INDUSTRY PUBLIC COMPANY LIMITED
NOTES TO FINANCIAL STATEMENTS
AS AT JUNE 30, 2000 AND 1999 (UNAUDITED/REVIEWED ONLY)
AND DECEMBER 31, 1999 (AUDITED)
1. BASIS OF FINANCIAL STATEMENTS PREPARATION
Notes to interim financial statements have been prepared in conformity with the Accounting Standard no. 41
"Interim Financial Statements" for the purpose of providing additional information according to the recent financial
statements for the fiscal year. Based on such matter, the financial statements concern about the disclosure of
information related to new activities, events and situations in order to avoid duplicated disclosure of information.
However, the balance sheet, statement of income, statement of changes in shareholders' equity, statement of retained
earnings and statement of cash flows are presented in consistency to the financial statements for the fiscal year.
Therefore, these interim financial statements should be compatible to the recent financial statements for the fiscal year.
2. PRINCIPLE OF FINANCIAL STATEMENTS PREPARATION
2.1 These interim financial statements are prepared in consistency to the financial statements for the year ended
December 31, 1999.
2.2 Total assets and revenues of subsidiaries are represented in the financial statements which equivalent to the
percentage as follow:
June 30, 2000
Assets Revenues
17.00 12.33
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICY
These interim financial statements are prepared by accounting policy and estimation basis in consistency to the
financial statements for the year ended December 31, 1999.
4. SHORT - TERM INVESTMENTS
Parent Company (Baht)
June 30, 2000 December 31, 1999
Cash at banks 3,280,192.97 3,280,192.97
Temporary investments 52,457,697.26 33,181,761.50
Total 55,737,890.23 36,461,954.47
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Temporary investments consist of :
Baht
The parent company as of June 30, 2000
Available for sale Other securities Total
Equity securities 994,600.00 0.00 994,600.00
Equity securities - investment units 0.00 51,463,097.26 51,463,097.26
Total 994,600.00 51,463,097.26 52,457,697.26
The parent company as of December 31, 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
5. ACCOUNTS AND NOTES RECEIVABLE
As of June 30, 2000 and December 31, 1999, the company's delinquent accounts receivable amount of 156 and 145
receivables, respectively, classified by aging are as follows :
Parent Company (Baht)
June 30, 2000 December 31, 1999
Over 3 months - 6 months 34,517,190.03 19,376,525.78
Over 6 months - 12 months 3,529,462.11 830,734.15
Over 12 months 15,389,867.26 16,289,310.46
Total 53,436,519.40 36,496,570.39
As of June 30, 2000 and December 31, 1999, the company provided the allowance for doubtful accounts amount of Baht
28,131,933.79.
6. INVENTORIES
Parent Company (Baht)
June 30, 2000 December 31, 1999
Finished goods 238,645,714.06 301,874,473.13
Work in process 38,652,964.51 16,061,781.81
Raw materials 83,066,807.72 97,262,836.30
Supply used 44,136,468.58 44,950,884.01
Goods in transit 9,698,189.73 3,203,404.35
Total 414,200,144.60 463,353,379.60
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7. INVESTMENTS
7.1 Investments in subsidiaries consist of:
Company's name Type of Business Paid-up Capital Holding (%) Relationship Cost Method The parent company
(Baht) Equity Method (Baht)
June 30, 2000 December 31,1999
Subsidiaries
Cermas Co., Ltd. Sale of feldspar and soil 8,000,000.00 21.55 Shareholder and director 1,224,500.00 1,386,901.09 1,244,623.82
UMI Property Co., Ltd. Real estate 150,000,000.00 37.57 Shareholder and director 56,350,000.00 54,912,092.24 58,748,957.10
Ruampat Ceramic Co., Ltd. Ceramic Agent 20,000,000.00 49.00 Shareholder and director 9,800,000.00 14,796,249.93 14,394,284.94
Siam Art Ceramic Co., Ltd. Designed ceramic 110,000,000.00 7.50 Shareholder and director 8,250,000.00 7,815,809.95 7,193,699.06
Total investments in subsidiaries 75,624,500.00 78,911,053.21 81,581,564.92
The company has shareholding in associated and other companies up to 7.50% - 49.00% and is able to control through majority committee of such companies. Such companies,
therefore, are considered to be subsidiaries, according to Accounting Standard No. 44 Consolidated Financial Statements and Accounting for Investments in Subsidiaries.
7.1.1 Investment in UMI Property Co., Ltd. Taken into consolidated financial statements and loss in 2000 under equity method is calculated financial statements prepared by the
Management, which has not been completely reviewed by other auditor since the company had already appointed the auditor for the year 2000 before being informed to prepare
consolidated financial statements. Therefore, the auditor could not review such financial statements within the maturity date.
7.1.2 Investment in Cermas Co., Ltd., Ruampat Ceramic Co., Ltd. and Siam Art Ceramic Co., Ltd. were taken into consolidated financial statements and loss in 2000 under equity
method is calculated from reviewing by other auditor. Since those companies had already appointed the auditor of the year 2000 before being informed to prepare consolidated
financial statements.
The company recognizes gain or loss in such subsidiaries under equity method in the second quarter for the year 2000 by making retroactive adjustment in the first
quarter for the year 2000 and 1999, and representing cumulative change in accounting policy as stated in note 23.2.
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7.2 Investments in associated companies consist of :
Company's name Type of Paid-up Capital Holding % Cost Method The parent company
Business Baht Baht Equity Method (Baht)
June 30, 2000 December 31,1999
Associated companies
Tekno Cer S.R.L Co., Ltd. Supplier 428,000.00 45.00 192,600.00 192,600.00 192,600.00
Total investments in associated companies 192,600.00 192,600.00 192,600.00
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.
7.3 Investments in other companies represented as long-term investments in equity securities consist of :
Company's name Type of Paid-up Capital Holding Cost Method The parent company
Business Baht % Baht Equity Method (Baht)
June 30, 2000 December 31,1999
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 0.00 0.00
Surf Dynamics Co., Ltd. Water Sports Equipment 14,000,000.00 14.28 2,000,000.00 2,000,000.00 2,000,000.00
Total investments in other companies 2,000,000.00 2,000,000.00 2,000,000.00
Investment in UMI-Laufen Sanitaryware Ltd. had net aggregate book value lower than cost approximately of Baht 476.45 million as at June 30, 2000, according
to the latest audited financial statements. As at June 30, 2000, the company provided the provision for diminution in value of investments of Baht 33,065,650.21
(As of December 31, 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.
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8. DEPOSITS WITH COMMITMENT
As at June 30, 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.12, and bank's issuance of letter of guarantee to the Metropolitan Power
Authority for electricity usage.
9. PROPERTY, PLANT AND EQUIPMENT - NET
The parent company
(Baht)
Cost as of January 1, 2000 3,033,030,073.74
Add Purchased assets 7,207,581.56
Transfer during the year 210,199,871.52
Less Transfer out of unused assets (3,176,433.87)
Cost as of June 30, 2000 3,247,261,092.95
Less Accumulated depreciation (2,179,474,007.92)
Book valued as of June 30, 2000 1,067,787,085.03
Less Allowance for diminution in value of assets (23,545,375.13)
Total 1,044,241,709.90
Project under construction - expansion of part at the 7th plant
Property, plant and equipment under construction as of January 1, 2000 367,951,668.14
Add Increase during the year 0.00
Less Transfer out during the year (210,199,871.52)
Total 157,751,796.62
Property, plant and equipment - net 1,201,993,506.52
The company incurred loss from impairment of property, plant and equipment - net for the year 1999 amount of Baht
23,345,375.13, which was represented in statement of income as of June 30, 2000. The company estimates that the net
realizable value of fixed assets will be not less than its book value.
As of June 30, 2000 and June 30, 1999, the depreciation for building, machinery and equipment in operating was Baht
93,017,929.01and Baht 87,493,748.99, 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 12 and 13.
In 1999, the company reappraised 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.
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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.
10. DEPOSIT
Parent Company (Baht)
June 30, 2000 December 31, 1999
Deposit for purchasing machinery 0.00 0.00
Other deposits 1,500,250.00 773,400.00
Total 1,500,250.00 773,400.00
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 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.
11. OTHER ASSETS
Parent Company (Baht)
June 30, 2000 December 31, 1999
Advance payment - share investment 1,251,900.00 1,251,900.00
Concession fee - net 514,796.32 586,979.08
Deferred expenses 1,498,619.68 2,128,333.34
Total 3,265,316.00 3,967,212.42
12. BANK OVERDRAFTS AND LOANS FROM BANK
Parent Company (Baht)
June 30, 2000 December 31, 1999
Bank overdrafts 78,965,949.44 57,940,537.29
Loans from banks 369,161,358.24 363,680,008.24
Total 448,127,307.68 421,620,545.53
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As at June 30, 2000 and December 31, 1999, the company had bank overdrafts of Baht 122 million with the interest
rate of 8.75 - 15.50% and 8.75 - 11.50% per annum and loans from bank with interest rate of 14.50 - 21.00% and 10.25 -
12.25% per annum, respectively.
Bank overdrafts and loans from bank were guaranteed by fixed deposit as stated in note 8 and mortgaged by land,
building and same part of machines as collateral as stated in note 9.
13. LONG-TERM LIABILITIES
Parent Company (Baht)
June 30, 2000 December 31, 1999
Long-term loans of Baht 1,000 million 280,000,000.00 280,000,000.00
Long-term loans of US$ 20 million 785,518,000.00 754,196,000.00
Less Default on current portion of long-term debt (1,065,518,000.00) 0.00
Current portion of long - term debt 0.00 (781,066,600.00)
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+0.50% per annum and US$ 20 million at the interest rate of SIBOR+1.75%
and LIBOR+2.50% per annum. Such long-term loans are guaranteed by mortgaging land, building and part of machinery (in
note 9) 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
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