The consolidation information was not presented due to insufficient information.
13. 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. The legal reserve may not be distributed as dividends.
14. PROVIDENT FUND
The Company established contributory registered provident fund in accordance with the
Provident Fund Act B.E.2530 (1987).
15. TRANSACTIONS WITH RELATED COMPANIES
A portion of the Company's assets, liabilities, revenues and expenses of the
Company was derived from its related companies. Those companies have connection with the
Company through the co-shareholders and/or co-directors. The financial statements reflect
the effects of these transactions on the basis determined by the companies concerned which
the management believe that the transactions were entered into the normal course of business.
"UNAUDITED"
"REVIEWED"
- 15 -
The Company has transactions with its subsidiaries companies as follows:
Baht
Consolidated The Company s only
As at March 31, As at December As at March 31, As at December
2001 31, 2000 2001 31, 2000
Accounts receivable-trade
Subsidiaries
Ruampat Ceramic Co.,Ltd. - - 195,047,747.21 187,883,523.64
Siam Art Ceramic Co.,Ltd. - - 60,751,216.07 49,557,823.98
UMI International Co.,Ltd. - - 507,044.13 4,554,017.31
Total - - 256,306,007.41 241,995,364.93
Cash paid for common shares
Subsidiaries - -
UMI International Co.,Ltd. - - 10,000,000.00 10,000,000.00
Total - - 10,000,000.00 10,000,000.00
Accounts payable-trade
Subsidiaries
Cermas Co.,Ltd. - - 11,452,562.10 15,864,396.32
Ruampat Ceramic Co.,Ltd. - - 13,569.09 71,688.93
Siam Art Ceramic Co.,Ltd. - - 1,600,386.10 3,568,371.86
Sub total - - 13,066,517.29 19,504,457.11
Associated companies
Tekno Cer S.R.L. Co.,Ltd. 1,129,627.16 901,307.15 1,129,627.16 901,307.15
Sub total 1,129,627.16 901,307.15 1,129,627.16 901,307.15
Others
UMI-Laufen Sanitaryware Co.,Ltd. 3,680,718.84 3,133,186.04 3,680,718.84 3,133,186.04
Sub total 3,680,718.84 3,133,186.04 3,680,718.84 3,133,186.04
Total accounts payable 4,810,346.00 4,034,493.19 17,876,863.29 23,538,950.30
"UNAUDITED"
"REVIEWED"
- 16 -
Revenues and expenses transactions with the related companies for the
three-month period ended March 31, as follows :
Baht
The Company s only
For the three-month period ended March 31,
2001 2000
Sales - goods and services
Subsidiaries
Ruampat Ceramic Co.,Ltd. 87,422,828.75 113,027,972.19
Siam Art Ceramic Co.,Ltd. 40,153,305.22 37,137,344.76
UMI International Co.,Ltd. 693,913.00 -
Total 128,270,046.97 150,165,316.95
Purchase - raw materials
Subsidiaries
Cermas Co.,Ltd. 15,558,351.36 14,243,353.62
Ruampat Ceramic Co.,Ltd. 12,685.84 533,395.00
Siam Art Ceramic Co.,Ltd. 2,728,591.99 2,054,214.48
Sub total 18,299,629.19 16,830,963.10
Associated companies
Tekno Cer S.R.L Co.,Ltd. 1,157,864.37 -
Sub total 1,157,864.37 -
Other
UMI-Laufen Sanitaryware Ltd. 6,611,639.14 5,633,531.00
Sub total 6,611,639.14 5,633,531.00
Total 26,069,132.70 22,464,494.10
The consolidation information was not presented due to insufficient information.
13. 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 average of export sales over the previous three years period
except for the first two years.
"UNAUDITED"
"REVIEWED"
- 17 -
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 lived over the period
of the Company's income tax exemption.
The rights and privileges of the promotion expired in 1999.
14. 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-month period ended March 31, 2001 and 2000, as follows :
. Baht
The Company s financial statements for the three-month period
ended March 31, 2001
Floor and wall tile Business Sanitary Other Total
Local Export Product Business
Sales - net 299,344,562.89 76,335,516.67 6,496,810.53 690,351.72 382,867,241.81
Less Cost of sales -259,176,556.52 -66,088,593.79 -4,729,647.07 -447,377.17 -330,442,174.55
Gross profit 40,168,006.37 10,246,922.88 1,767,163.46 242,974.55 52,425,067.26
Profit (Loss) from operation -24,653,901.00
Equity gain (loss) on
investments - net -4,134,638.69
Interest expense -59,649,065.77
Net profit (loss) -88,437,605.46
. Baht
The Company s financial statements for the three-month period ended March 31, 2000
Floor and wall tile Business Sanitary Other Total
Local Export Product Business
Sales - net 294,173,382.21 69,827,937.74 15,303,866.02 1,203,631.42 380,508,817.39
Less Cost of sales -276,007,026.80 -65,515,789.83 -11,568,405.25 -554,885.65 -353,646,107.53
Gross profit 18,166,355.41 4,312,147.91 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 expense -37,086,371.10
Net profit (loss) -63,376,477.07
The consolidation information was not presented due to insufficient information.
"UNAUDITED"
"REVIEWED"
- 18 -
13. CONTINGENT LIABILITIES
13.1 As at March 31, 2001, the Company has contingent liabilities for bank guarantees
approximately Baht 9.74 million.
13.2 The Company was sued by seven lenders due to default on debt repayment. The principal
and accrued interest expenses amounted to totalling Baht 1,603,235,022.21. The lawsuit has
not been finalized yet and the Company is negotiating in the process of debt restructuring.
14. DIRECTORS' REMUNERATION
Director remuneration is a meeting premium paid to directors but not including
salaries and benefit for the management directors.
15. DISCLOSURE AND PRESENTATION OF FINANCIAL INSTRUMENTS
For the three-month period ended March 31, 2001, the Company has applied
accounting practice in accordance with Accounting Standard no. 48 "Disclosure and Presentation
of Financial Instruments". The Company only presented information in the current period
since the Company has applied this accounting standard for the first time.
The Company has no policy to hold financial instrument for speculation and
trading.
23.1 Accounting policies
Details of significant accounting policies and method adopted including recognition basis
and expenses relating to each class of financial asset and financial liability have been
disclosed as stated in note 4.
23.2 Credit risk
Credit risk derives from failure by counterparts to discharge their obligation resulting in
financial loss to the Company and subsidiaries.
For the financial assets shown in balance sheets at the book value deducted by
allowance for doubtful account is maximum value of credit risk.
For off - balance sheets, the Company expect that the amounts of credit risk is
immaterial.
"UNAUDITED"
"REVIEWED"
- 19 -
23.3 Interest rate risk
Interest rate risk derives from changes in interest rate from the Company and
subsidiaries have loans from financial institutions resulting in financial loss to the
Company and subsidiaries in the current and following period because of the most of
agreement indicated the floating interest rate. Information about interest rate, maturi
ty date of loan from bank of financial institutions and long-term have been disclosed in
notes to financial statements no.13 and 14.
23.4 The fair value of financial instrument
Financial assets shown in balance sheets consist of cash and deposit at banks,
trade receivable and notes receivable, investment, deposits with commitment. Financial
liabilities shown in balance sheets consist of bank overdrafts, loans from banks, accounts
payable, long-term liabilities.
The book value of financial assets and liabilities are close to their estimated
fair values. The Management believes that there is no material risk from financial instruments
except for the items mentioned below.
As at March 31, 2001 and December 31, 2000, the Company had financial assets
having difference between book value and fair value as follows :
The consolidation information was not presented due to insufficient information.
