"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, maturity
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 :
Baht
Consolidated The Company s only Consolidated The Company s only
As at March 31, 2001 As at March 31, 2001 As at December 31, 2000 As at December 31, 2000
Book value Fair value Book value Fair value Book value Fair value Book value Fair value
Financial assets
Investment in debt securities 44,191,749.53 44,191,749.53 44,191,749.53 44,191,749.53 44,438,064.69 44,438,064.69 44,438,064.69 44,438,064.69
Deposits with commitment 30,000,000.00 30,000,000.00 30,000,000.00 30,000,000.00 30,000,000.00 30,000,000.00 30,000,000.00 30,000,000.00
"UNAUDITED"
"REVIEWED"
- 20 -
13. RECLASSIFICATION
Certain accounts included in the balance sheet as at December 31, 2000
have been reclassified for comparison purpose with the balance sheet as at March 31, 2001.
The reclassified items are as follows:-
Baht
Consolidated The Company s
Balance sheet Balance sheet only
at December 31, at December 31,
2000 2000
Accounts receivable-subsidiaries, separated from accounts
and note receivable-trade - 241,995,364.93
Transference its assets not used in operations to be a part of other assets 177,505,522.71 177,505,522.71
Accounts payable-related companies, separated from accounts
payable-trade 4,034,493.19 23,538,950.30
Correction of presentation of unrealized gain (loss) from changing
in fair value of investments by reducing of appraisal surplus of land 809,909.41 -
Correction of presentation of minority interest of subsidiaries by reducing
of unrealized gain (loss) from changing in fair value of investments
as the Minority interest s portion 913,426.82 -
13. CORRECTION OF FUNDAMENTAL ERRORS
The Company's adjustments has been applied to restate 2000 financial
statements due to
(1) Accrued interest expenses denominated in foreign currency at the balance
sheet dates are not translated into Baht at the prevailing rates at those dates, and
(2) Interest capitalization for factory construction and machinery under
installation were included as a part of "machinery under installation". Accordingly,
the Company adjusted the interest capitalization to be a part of the factory building
which was devalued in 1999 and also adjusted the loss on impairment of the assets at the
same amount. Interest capitalization of machinery under installation was adjusted to be
interest expense for the period of capitalization of interest because the machinery has
not yet been in process of installation.
"UNAUDITED"
"REVIEWED"
- 21 -
14. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the net profit (loss)
for the period by the weighted average number of ordinary shares which issued and paid-up
during the period.
For the three-month period ended March 31, 2001 and 2000
Consolidated The Company s only
2001 2001 2000
Net profit (loss) for the period (Baht) -88,437,605.46 -88,437,605.46 -63,376,477.07
Weighted average number of ordinary shares (Shares) 32,000,000 32,000,000 32,000,000
Basic earnings (loss) per share (Baht per share) -2.76 -2.76 -1.98
13. SUBSEQUENT EVENT
At the shareholders' meeting held on April 26, 2001, the shareholders
approved to decrease its authorized share capital amounting to Baht 180,000,000.00
(18,000,000 shares, Baht 10 par value) in order to the remaining authorized share
capital equal to issued and paid-up share capital Baht 320,000,000.00 (32,000,000
shares, Baht 10 par value). The Company is registering the decrease in the authorized
share capital with the Ministry of Commerce.
14. OTHER MATTERS
14.1 The Company registered the conversion into a Public Company Limited on March 11, 1994.
14.2 The Company's head office is located at 65 Chamnan Phenjati Business Center,
29th Fl., Rama 9 Rd., Huaykwang, Bangkok 10320 Thailand. The location of two branches
are as follows :
Branch : 1st site at 54/1 Suwannasorn Road, Tumbol Kokeyae, Nongkhae District,
Saraburi.
2nd site at 54 Moo1, Tumbol Phaitum, Nongkhae District, Saraburi.
14.3 The Company engages in producing and distributing of floor, wall tile, kitchen
equipment and supplementary food.
14.4 The Company has staff in the approximate amount of 1,600 persons as at March 31, 2001.
