"UNAUDITED"
"REVIEWED"
- 8 -
For the first quarter of 2000
In the second quarter of 2000, the Company changed its accounting practices for
investment in subsidiaries. However, the Company did not make retroactive adjustment
in the interim financial statements for the three-month period ended March 31, 2000
because the results of the change were not material amount. For the three-month period
ended March 31, 2000, the Company recorded its investment in subsidiaries as follow :
(1) The equity in net loss of Cermas Co.,Ltd, UMI Property Co.,Ltd and Ruampat Ceramic
Co.,Ltd were computed from unreviewed financial statements.
(2) Investment in Siam Art Ceramic Co.,Ltd was stated at cost.
At December 31, 2000
(3) 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 audited by other auditor since the Company had
already appointed the auditor for the year 2000 before being informed to prepare consolidated
financial statement. Therefore, the auditor could not audit such financial statements within
the maturity date.
(4) 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.
(5) Investment in UMI International Co.,Ltd., taken into consolidated financial statements
and loss in 2000 under equity method is calculated from audited financial statement by other
auditor.
8.1 Investments in associated companies consist of :
Baht
Company s name Type of Paid-up Capital Holding Cost Method The Company s balance sheet only
Business (Lit) portion (Baht) Equity Method
As at As at
March 31, 2001 December 31, 2000
Associated companies
Tekno Cer S.R.L.
Co.,Ltd. Supplier 20,000,000.00 45.00% 192,600.00 192,600.00 192,600.00
192,600.00 192,600.00 192,600.00
In 2001, the Company does not yet take equity in net loss because it has not yet
received information from associated company.
"UNAUDITED"
"REVIEWED"
- 9 -
8.3 Investments in other companies represented as long-term investments in equity
securities consist of :
Baht
Company s name Type of Business Paid-up Capital Holding The Company s balance sheet only
(Baht) portion Cost Method
As at As at
March 31, 2001 December 31, 2000
Other companies
UMI-Laufen Sanitaryware Ltd. Proceducer of
Sanitaryware 430,000,000.00 11.04% 33,065,650.21 33,065,650.21
Less Provision for diminution in value of investments -33,065,650.21 -33,065,650.21
Net - -
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 2,000,000.00
Investment in UMI-Laufen Sanitaryware Ltd., had capital deficiency
approximately of Baht 476.45 million as at December 31, 2000, according to the latest
audited financial statements. As at December 31, 2000, the Company provided the
provision for diminution in value of investments of Baht 33,065,650.21.
8.4 Investment in debt securities
Investment in debt securities holding until maturity consisted of:
Baht
The Company s balance sheet
At at March As at December
31, 2001 31, 2000
Due within Due within
6-10 years 6-10 years
Government bond 34,470,026.56 34,677,703.01
State Enterprise bond secured by Government 9,721,722.97 9,760,361.68
Total 44,191,749.53 44,438,064.69
The consolidation information was not presented due to insufficient information.
9. DEPOSITS WITH COMMITMENT
As at March 31, 2001 and December 31, 2000, the Company's, fixed deposit of
Baht 30,000,000.00 is used as collateral for bank overdraft and loans from banks as
mentioned in note no.13, and bank's issuance of letter of guarantee to the Metropolitan
Power Authority for electricity usage.
"UNAUDITED"
"REVIEWED"
- 10 -
10. PROPERTY, PLANT AND EQUIPMENT - NET
Baht
The Company s balance sheets only
Balance as at Increased and decreased Balance as at
December 31, 2000 transactions during the period March 31, 2001
(Restated) Increase Sales and
Transfer
Land at appraisal value 143,700,000.00 - - 143,700,000.00
Cost
Land and Condominium units 167,862,093.97 - - 167,862,093.97
Plant and Construction 757,610,267.28 - - 757,610,267.28
Office improvement and fixture 29,189,795.22 - - 29,189,795.22
Machinery 1,859,635,226.12 - -550,000.00 1,859,085,226.12
Tools 90,770,288.14 1,797,861.03 - 92,568,149.17
Furniture and office equipment 81,273,858.42 520,089.17 - 81,793,947.59
Vehicles 25,826,241.57 - - 25,826,241.57
Total 3,155,867,770.72 2,317,950.20 -550,000.00 3,157,635,720.92
Less Accumulated depreciation
Condominium 41,697,064.06 1,405,886.43 - 43,102,950.49
Plant and Construction 248,722,139.82 7,523,742.05 - 256,245,881.87
Machinery 1,750,897,510.22 8,970,471.50 -549,999.00 1,759,317,982.72
Tools 79,646,673.03 2,031,355.71 - 81,678,028.74
Furniture and office equipment 51,576,611.46 2,126,986.59 - 53,703,598.05
Vehicles 21,624,548.73 470,138.32 - 22,094,687.05
Office improvement and fixture 27,384,171.74 236,034.92 - 27,620,206.66
Total 2,221,548,719.06 22,764,615.52 -549,999.00 2,243,763,335.58
Net 934,319,051.66 913,872,385.34
Less Provision for loss from
impairment of building -87,991,649.04 - - -87,991,649.04
Property, plant and equipment-net 846,327,402.62 825,880,736.30
Baht
The Company s statements of income only
For the three-month period For the three-month period
ended March 31, 2001 ended March 31, 2000
Depreciation 22,764,615.52 46,722,935.98
"UNAUDITED"
"REVIEWED"
- 11 -
The Company incurred loss from impairment of property, plant and equipment - net
for the year 1999 amount of Baht 23,545,375.13, which was represented in statement of
income as of December 31, 1999. The Company estimates that the net realizable value of
fixed assets will be not less than its book value.
In 2000, the Company reappraised the land by CB Richard Ellis (Thailand) Co.,Ltd.
an independent appraiser, according to the report dated on August 21, 2000. The current
appraisal value of land is devalued amount of Baht 80,000,000.00. After deducting to the
appraisal surplus of land of the year 1999 of Baht 207,515,676.00, the remaining balance
of the appraisal surplus of land would be Baht 127,515,676.00 shown in the shareholders'
equity. The appraisal surplus of land may not be distributed as dividends.
The Company has a policy to revalue the land every year.
In the third quarter of the year 1998, the Company has temporarily suspended the
project under construction of expansion part of the seventh plant causing from the volatility
of economy as mentioned 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.
Land including its building and part of machineries are mortgaged as collateral for
bank overdrafts, loans from banks and long - term loans as mentioned in notes 13 and 14.
The consolidation information was not presented due to insufficient information.
11. DEPOSIT
Baht
The Company s balance sheets only
As at March As at December
31, 2001 31, 2000
Deposit for purchasing machinery 45,300,760.58 45,300,760.58
Less Allowance for damage -45,284,230.58 -45,284,230.58
Deposit for machinery - net 16,530.00 16,530.00
Other deposits 1,323,641.41 1,495,702.87
Total 1,340,171.41 1,512,232.87
"UNAUDITED"
"REVIEWED"
- 12 -
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.
The consolidation information was not presented due to insufficient information.
12. OTHER ASSETS
Baht
The Company s balance sheets only
As at March As at December
31, 2001 31, 2000
Property foreclosed 230,814.93 230,814.93
Advance payment - share investment 1,251,900.00 1,251,900.00
Concession fee - net 406,522.18 442,613.56
Deferred expenses 721,249.52 965,666.24
Total 2,610,486.63 2,890,994.73
The consolidation information was not presented due to insufficient information.
13. BANK OVERDRAFTS AND LOANS FROM BANKS
Baht
The Company s balance sheets only
As at March As at December
31, 2001 31, 2000
Bank overdrafts 66,722,376.87 73,783,093.50
Loans from banks 393,884,388.39 389,169,296.17
Total 460,606,765.26 462,952,389.67
The lawsuit has not been finalized yet as stated in note 21.2 and the Company is
negotiating in the process of debt restricting as prescribed by the Bank of Thailand.
"UNAUDITED"
"REVIEWED"
- 13 -
The Company bears interest for overdraft of a bank at the rate of 2% per
annum over fixed deposit and records interest from other banks at the defaulted rate.
The Company has not yet received confirmation replies from the banks for amount outstanding
of accrued interest.
Bank overdrafts and loans from banks were guaranteed by fixed deposit as
stated in note 9 and mortgaged by land, building and part of machineries as collateral
as stated in note 10.
The consolidation information was not presented due to insufficient information.
13. LONG-TERM LIABILITIES
Baht
The Company s balance sheets only
As at March As at December
31, 2001 31, 2000
Long-term loans of Baht 280 million 280,000,000.00 280,000,000.00
Long-term loans of US$ 20 million 886,270,000.00 859,577,800.00
Total 1,166,270,000.00 1,139,577,800.00
Less Long-term debt due at call -1,166,270,000.00 -1139577800
Net - -
In September 1997, the Company had long-term loans from banks and financial
institutions amount of Baht 1,000 million (reducing the amount of loans to Baht 280 million
on December 24, 1997) and US$ 20 million. Such long-term loans are guaranteed by mortgaging
of land, building and part of machineries (see note 10) and assigned the benefits received
from insurance policy to lenders which has certain limitation specified in the agreements.
The forward exchange contracts of US$ 2 million due in June and July 2000.
Accordingly, the Company converted the US$ loan to be Thai Baht loan at the amount of
77,665,000.00 since the due date of such forward exchange contracts.
As stated in note 21.2, the lawsuit has not been finalized yet and the
Company is negotiating in the process of debt restructuring as prescribed by the Bank
of Thailand. The Company records interest for such loans at the defaulted rates ranging
from 14.5% to 21% per annum.
The consolidation information was not presented due to insufficient information.
"UNAUDITED"
"REVIEWED"
- 14 -
13. UNREALIZED GAIN (LOSS) FROM CHANGING FAIR VALUE OF INVESTMENTS
Baht
The Company s balance sheets only
As at March As at December
31, 2001 31, 2000
Beginning of the period -152,375.00 1,173,000.00
Changes during the period -81,350.00 -1,325,375.00
End of the period -233,725.00 -152,375.00
