THE UNION MOSAIC INDUSTRY PUBLIC COMPANY LIMITED
AUDITOR'S REPORT AND FINANCIAL STATEMENTS
AS AT JUNE 30,2000 AND 1999 (UNAUDITED/REVIEWED ONLY)
AND AS AT DECEMBER 31, 1999 (AUDITED)
AUDITOR'S REPORT
To The Shareholders of
THE UNION MOSAIC INDUSTRY PUBLIC COMPANY LIMITED
I have reviewed the consolidated balance sheets as at June 30,2000, the related consolidated statements of
income for the three and six months ended June 30,2000, related consolidated statements of changes in shareholders'
equity, of retained earnings for the six months ended June 30, 2000 of THE UNION MOSAIC INDUSTRY PUBLIC
COMPANY LIMITED AND SUBSIDIARIES and the parent financial statements of THE UNION MOSAIC INDUSTRY PUBLIC COMPANY
LIMITED for the period ended June 30, 2000 and 1999, and reviewed the statements of cash flows for the six
month then ended. These financial statements are the responsibility of the Company's management as to their
correctness and completeness of the presentation. My responsibility is to issue a report on these financial
statements based on my review.
I conducted my review in accordance with auditing standards applicable to review engagements. This standard
requires that I plan and perform the review to obtain moderate assurance as to whether the financial statements
are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical
procedures applied to financial data and thus provides less assurance than an audit. Accordingly, I do not express an
opinion on these financial statements.
As mentioned in note to the financial statement no. 7.1, investments in four associated and other companies
are recognized as investments in subsidiaries in accordance with the Thai Accounting Standard No. 44 Consolidated
Financial Statement and Accounting for Investments in Subsidiaries. Since the company is able to control such
companies through the majority committee thereof, the company recognized the investments in subsidiaries of which
invested in four subsidiaries under the equity method. Equity gains/losses of three subsidiaries as mentioned in
7.1.2, for the three and six months ended June 30, 2000, were calculated from the financial statements reviewed by
other auditors and another company as mentioned in 7.1.1 calculated from the financial statements prepared by the
management which were not reviewed by other auditors. The consolidated balance sheets as of June 30, 2000 include
the total assets of subsidiaries and investments in subsidiaries under equity method equivalent to 17.00 per cent of
total assets of consolidated balance sheets and 3.55 per cent of total assets of the parent balance sheet. Gains from
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investments in such subsidiaries under equity method for the three and six months in 2000 amounting to Baht 2.75
million and Baht 2.23 million, respectively, were shown in the consolidated statements of income which include equity
loss in the parent financial statements for the three and six months for the year 2000 amounting to Baht 2.97 million and
Baht 2.67 million, respectively, and for the year in 1999 amounting to Baht 9.09 million and Baht 18.19 million,
respectively.
Except for scope limitation by the circumstance for reviewing the investments in such subsidiaries mentioned
in the third paragraph, nothing has come to my attention that causes me to believe that the financial statements do not
present fairly in all material respect in accordance with generally accepted accounting principles based on my review.
I draw your attention to the following notes to financial statements:
(1) As stated in notes to financial statements no. 9, the company has temporarily suspended the project
under construction - factory expansion having the investment value amount of Baht 157.75 million as at June 30, 2000
due to the economic fluctuation and slowdown in the real estate business. However, the company expects to take
benefit in the future when the economic is recovered.
(2) As shown in the financial statements, the result of the company's operations incurred loss for many
consecutive years, having the total deficit of Baht 667.71 million as at June 30, 2000. The shareholders' equity shown
the outstanding balance of Baht 390.65 million, but the management expects that the company's operation will be
recovered in the future.
(3) As stated in notes to financial statements no. 13 and 20.2, regarding to long - term liabilities, the
company entered into additional memorandum of understanding on such agreement and the company has defaulted on
debt repayment. As a result, on July 11, 2000, the company was informed to cease the agreement and make principal
repayment in the amount of Baht 743.79 million and accrued interest expenses, totalling approximately of Baht 21.87
million from the authorized lawyer by lender whenever the economic was recovered.
I have audited the financial statements of THE UNION MOSAIC INDUSTRY PUBLIC COMPANY
LIMITED for the year ended December 31, 1999, in accordance with generally accepted auditing standards in my
report dated February 25, 2000 included the conditions regarding the recognization on equity gain (loss) of the three
associated companies. Those financial statements have been taken from unaudited financial statements by other auditors.
Investment in associated companies represented the holding of 0.72 per cent of total assets and the equity gain
represented at 0.09 per cent. Moreover, the notes to financial statements stated the effect of economic crisis that caused
to temporarily suspend the invested project under construction - factory amount of Baht 367.95 million, incurring loss
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for three consecutive years and the deficit of Baht 599.74 million. The shareholders' equity, therefore, shown the
outstanding balance of Baht 459.74 million. However, the management expects that the company's operation will
will be recovered in current portion of long term debt of Baht 781.07 million, which has not been settled. The current
repayment of principle upon the new agreement, has been under debt restructuring process. The balance sheet as at
December 31, 1999, presented for comparison purpose, is a partial of the audited and reported financial statements.
I have not performed any auditing procedures since that date.
Office of D I A International Auditing
(Mrs. Vilairat Rojnuckarin)
C.P.A. (Thailand)
Registration No. 3104
August 7, 2000
THE UNION MOSAIC INDUSTRY PUBLIC COMPANY LIMITED
BALANCE SHEETS
AS AT JUNE 30, 2000 (UNAUDITED/REVIEWED ONLY)
AND AS AT DECEMBER 31, 1999 (AUDITED)
Consolidated (Baht) Parent Company
Note June 30, 2000 June 30, 2000 December 31, 1999
Assets (Adjustment)
Current assets
Cash in hand and at banks 77,179,061.49 52,770,581.51 7,997,908.06
Short-term investments 4 55,785,890.23 55,737,890.23 36,461,954.47
Accounts and notes receivable 5 465,363,051.95 397,409,234.51 327,557,947.50
Less Allowance for doubtful
accounts (28,753,225.79) (28,131,933.79) (28,131,933.79)
Accounts and notes receivable - net 436,609,826.16 369,277,300.72 299,426,013.71
Inventories 6 493,365,779.56 414,200,144.60 463,353,379.60
Other current assets
Advance 4,383,026.83 4,383,026.83 3,746,036.11
Revenue Department - receivable 0.00 0.00 4,461,477.17
Refundable custom tax 2,920,366.83 2,920,366.83 2,510,522.67
Prepaid expenses 4,917,647.99 4,917,647.99 6,002,569.43
Other 5,278,373.09 2,932,536.87 1,381,056.86
Total current assets 1,080,439,972.18 907,139,495.58 825,340,918.08
Investments :
Investments in subsidiaries 7.1 0.00 78,911,053.21 81,581,564.92
Investments in associated
companies 7.2 192,600.00 192,600.00 192,600.00
Investments in other companies 7.3 2,000,000.00 2,000,000.00 2,000,000.00
Deposits with commitment 8 30,000,000.00 30,000,000.00 30,000,000.00
Property, plant and equipment - net 9 1,558,489,965.62 1,201,993,506.52 1,287,803,854.97
Deposit 10 1,500,250.00 1,500,250.00 773,400.00
Other assets 11 8,224,444.16 3,265,316.00 3,967,212.42
Total assets 2,680,847,231.96 2,225,002,221.31 2,231,659,550.39
The consolidated financial statements for the year ended December 31, 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
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Consolidated (Baht) Parent Company
Note June 30, 2000 June 30, 2000 December 31, 1999
Liabilities and shareholders' equity (Adjustment)
Current liabilities
Bank overdrafts and
loans from bank 12 505,793,590.27 448,127,307.68 421,620,545.53
Accounts payable 255,449,551.34 232,857,915.79 213,119,369.51
Current portion of long-term debt
due at call 13 1,065,518,000.00 1,065,518,000.00 0.00
Current portion of long-term debt 13 2,782,497.32 0.00 781,066,600.00
Accrued expenses 78,194,332.68 74,375,551.68 33,970,795.22
Other loan payables 71,178,750.00 10,000,000.00 10,000,000.00
Other current liabilities 12,005,501.41 3,474,965.47 1,072,936.84
Total current liabilities 1,990,922,223.02 1,834,353,740.62 1,460,850,247.10
Payable loan from director 51,480,000.00 0.00 0.00
Long-term debt 13 34,088,113.77 0.00 253,129,400.00
Other liabilities 5,603,860.65 0.00 0.00
Total liabilities 2,082,094,197.44 1,834,353,740.62 1,713,979,647.10
The consolidated financial statements for the year ended December 31, 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
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Consolidated (Baht) Parent Company
Note June 30, 2000 June 30, 2000 December 31, 1999
(Adjustment)
Shareholders' equity
Share capital
Authorized share capital
50,000,000 common shares
of Baht 10 each 500,000,000.00 500,000,000.00 500,000,000.00
Issued and paid-up capital
32,000,000 common shares
of Baht 10 each 320,000,000.00 320,000,000.00 320,000,000.00
Premium on share capital 498,800,000.00 498,800,000.00 498,800,000.00
Appraisal surplus of land 207,515,676.00 207,515,676.00 207,515,676.00
Unrealized gain (loss) from changing
fair value of investments 14 47,625.00 47,625.00 1,173,000.00
Retained earnings (Deficit)
Appropriated
Legal reserve 32,000,000.00 32,000,000.00 32,000,000.00
Unappropriated (667,714,820.31) (667,714,820.31) (541,808,772.71)
Total shareholders' equity 390,648,480.69 390,648,480.69 517,679,903.29
Minority interest of subsidiaries 208,104,553.83 0.00 0.00
Total shareholders' equity and
minority interest of subsidiaries 598,753,034.52 390,648,480.69 517,679,903.29
Total liabilities and shareholders' equity 2,680,847,231.96 2,225,002,221.31 2,231,659,550.39
The consolidated financial statements for the year ended December 31, 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
STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999
UNAUDITED/REVIEWED ONLY
Consolidated (Baht) Parent Company
2000 2000 Baht 1999
(Adjustment)
Revenues
Sales 453,022,497.95 397,154,715.46 308,085,447.71
Other income :
Gain (Loss) on foreign exchange rate (31,541,389.64) (31,569,604.50) 19,299,314.94
Other income 11,744,666.92 11,645,443.44 10,257,554.70
Total revenues 433,225,775.23 377,230,554.40 337,642,317.35
Expenses
Cost of sales 357,109,422.17 323,302,896.29 292,537,635.69
Unappropriated net (gain) loss of subsidiaries 0.00 2,970,508.82 9,093,800.64
Selling and administrative expenses 79,125,776.02 60,018,454.80 48,105,789.53
Interest expenses 56,695,142.47 53,468,265.02 35,529,504.38
Corporate income tax 79,786.31 0.00 0.00
Total expenses 493,010,126.97 439,760,124.93 385,266,730.24
Profit (Loss) and minority interest (59,784,351.74) (62,529,570.53) (47,624,412.89)
(Profit) Loss of minority interest (2,745,218.79) 0.00 0.00
Net profit (loss) (62,529,570.53) (62,529,570.53) (47,624,412.89)
Earnings (Loss) per share (1.95) (1.95) (1.49)
The consolidated financial statements for the year ended June 30, 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
STATEMENTS OF INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
UNAUDITED/REVIEWED ONLY
Consolidated (Baht) Parent Company
2000 2000 Baht 1999
(Adjustment)
Revenues
Sales 886,695,337.47 777,663,532.85 572,240,936.65
Other income :
Gain (Loss) on foreign exchange rate (36,673,877.43) (36,967,317.73) (1,222,393.49)
Others income 18,133,570.82 20,009,405.28 15,695,673.94
Total revenues 868,155,030.86 760,705,620.40 586,714,217.10
Expenses
Cost of sales 745,497,502.74 676,949,003.82 568,184,397.23
Unappropriated net (gain) loss of subsidiaries 0.00 2,670,511.71 18,187,601.28
Selling and administrative expenses 148,933,554.12 116,437,516.35 89,274,853.98
Interest expenses 97,041,384.57 90,554,636.12 74,094,935.43
Corporate income tax 356,257.91 0.00 0.00
Total expenses 991,828,699.34 886,611,668.00 749,741,787.92
Profit (Loss) and minority interest (123,673,668.48) (125,906,047.60) (163,027,570.82)
(Profit) Loss of minority interest (2,232,379.12) 0.00 0.00
Net profit (loss) (125,906,047.60) (125,906,047.60) (163,027,570.82)
Earnings (Loss) per share (3.93) (3.93) (5.09)
The consolidated financial statements for the year ended June 30, 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
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
UNAUDITED/REVIEWED ONLY
Consolidated (Baht) Parent Company
Note 2000 2000 Baht 1999
Share capital (Adjustment)
Common shares
Beginning of the period 320,000,000.00 320,000,000.00 320,000,000.00
End of the period 320,000,000.00 320,000,000.00 320,000,000.00
Paid-in capital
Premium on share capital
Beginning of the period 498,800,000.00 498,800,000.00 498,800,000.00
End of the period 498,800,000.00 498,800,000.00 498,800,000.00
Appraisal surplus of land
Beginning of the period 207,515,676.00 207,515,676.00 266,102,532.00
End of the period 207,515,676.00 207,515,676.00 266,102,532.00
Unrealized gain (loss) from changing
fair value of investments 14 47,625.00 47,625.00 0.00
Retained earnings (Deficit)
Appropriated
Legal reserve
Beginning of the period 32,000,000.00 32,000,000.00 32,000,000.00
End of the period 32,000,000.00 32,000,000.00 32,000,000.00
Unappropriated
Beginning of the period (541,808,772.71) (541,808,772.71) (291,099,582.04)
Net profit (loss) (125,906,047.60) (125,906,047.60) (163,027,570.82)
End of the period (667,714,820.31) (667,714,820.31) (454,127,152.86)
Total shareholders' equity 390,648,480.69 390,648,480.69 662,775,379.14
The consolidated financial statements for the year ended June 30, 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
STATEMENTS OF RETAINED EARNINGS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
UNAUDITED/REVIEWED ONLY
Consolidated (Baht) Parent Company
Note 2000 2000 Baht 1999
(Adjustment)
Unappropriated retained earnings (deficit)
Beginning balance (599,743,787.68) (599,743,787.68) (297,326,951.45)
Cumulative effects from change
in accounting policy 23.1 0.00 0.00 (4,860,947.06)
Cumulative effects from change
in accounting policy 23.2 57,935,014.97 57,935,014.97 11,088,316.47
Beginning retained earnings
(deficit) after adjustments (541,808,772.71) (541,808,772.71) (291,099,582.04)
Less Net profit (loss) for the period (125,906,047.60) (125,906,047.60) (163,027,570.82)
Total unappropriated retained earnings (deficit) (667,714,820.31) (667,714,820.31) (454,127,152.86)
Appropriated retained earnings (deficit) 32,000,000.00 32,000,000.00 32,000,000.00
Total retained earnings (deficit) (635,714,820.31) (635,714,820.31) (422,127,152.86)
The consolidated financial statements for the year ended June 30, 1999 have not been prepared due to insufficient
information.
Notes to financial statements are parts of these financial statements.
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