The consolidated financial statements for the year ended September 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 CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
UNAUDITED/REVIEWED ONLY
Parent Company
2000 Baht 1999
(Adjustment)
Cash flows from operating activities
Net profit (loss) (191,715,258.51) (279,266,725.43)
Items to reconcile net profit (loss) to cash receipt (disbursement) from operating activities
Depreciation 115,240,855.63 131,686,563.88
Amortization of other assets 759,899.80 108,274.14
Unappropriated net (gain) loss of subsidiaries under equity method 4,920,572.90 10,354,780.58
Unrealized (gain) loss on exchange rate 86,700,160.94 106,232,794.83
Loss (Gain) from unused assets 1.00 0.00
Loss (Gain) from increment of securities 0.00 (1,768,971.91)
Loss (Gain) from transfer of investments (401,310.76) 0.00
Loss (Gain) from disposal of property, plant and equipment (429,901.53) 12,311.75
Loss (Gain) from sales of securities (2,208,917.14) (1,571,936.11)
Profit from operations before changes in operating assets and liabilities 12,866,102.33 (34,212,908.27)
Changes in operating assets (increase) decrease
Short - term investments 0.00 8,727,290.17
Accounts and notes receivable (100,951,283.77) (49,334,707.24)
Short - term loans 0.00 14,644.00
Inventories (20,989,997.38) (27,682,874.92)
Other current assets (6,760,379.21) (6,018,929.72)
Deposits (3,489,750.28) 167,871.68
Other assets 35,809.79 (160,527.71)
Changes in operating liabilities increase (decrease)
Accounts payable 24,388,972.49 146,501,624.62
Accrued expenses 99,377,740.98 11,389,129.46
Other current liabilities 168,186.97 (44,879.16)
Net cash provided by (used in) operating activities 4,645,401.92 49,345,732.91
- 2 -
Parent Company
2000 Baht 1999
(Adjustment)
Cash flows from investing activities
Cash paid for paid for purchasing bonds (45,460,306.79) 0.00
Cash received from disposal of property, plant and equipment 429,906.53 2,000.00
Cash paid for purchasing investments 36,952,207.37 0.00
Cash paid advance for share subscribtion (10,000,000.00) 0.00
Payment of property, plant and equipment (10,677,211.45) (6,560,698.31)
Net cash provided by (used in)investing activities (28,755,404.34) (6,558,698.31)
Cash flows from financing activities
Cash paid for other loans repayment (10,000,000.00) 0.00
Bank overdrafts and loans from banks increase (decrease) 38,167,582.59 (36,717,811.23)
Net cash provided by (used in) financing activities 28,167,582.59 (36,717,811.23)
Cash and cash equivalents increase (decrease) 4,057,580.17 6,069,223.37
Cash and cash equivalents items as at January 1, 7,997,908.06 687,153.00
Cash and cash equivalents items as at September 30, 12,055,488.23 6,756,376.37
Supplemental disclosures of cash flow information :
1. Cash paid during the year for :
Interest expenses 40,708,561.87 110,091,261.40
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 September 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 SEPTEMBER 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:
September 30, 2000
Assets Revenues
17.16 11.29
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)
September 30, 2000 December 31, 1999
Cash at banks 0.00 3,280,192.97
Temporary investments 803,850.00 33,181,761.50
Total 803,850.00 36,461,954.47
- 2 -
Temporary investments consist of :
Baht
The parent company as of September 30, 2000
Available for sale Other securities Total
Equity securities 803,850.00 0.00 803,850.00
Equity securities - investment units 0.00 0.00 0.00
Total 803,850.00 0.00 803,850.00
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 September 30, 2000 and December 31, 1999, the company's delinquent accounts receivable amount of
186 and 145 receivables, respectively, classified by aging are as follows :
Parent Company (Baht)
September 30, 2000 December 31, 1999
Over 3 months - 6 months 82,129,163.31 19,376,525.78
Over 6 months - 12 months 3,053,024.50 830,734.15
Over 12 months 22,203,526.83 16,289,310.46
Total 107,385,714.64 36,496,570.39
As at September 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)
September 30, 2000 December 31, 1999
Finished goods 286,585,109.68 301,874,473.13
Work in process 46,831,526.49 16,061,781.81
Raw materials 94,796,945.09 97,262,836.30
Supply used 44,169,883.79 44,950,884.01
Goods in transit 11,959,911.93 3,203,404.35
Total 484,343,376.98 463,353,379.60
- 3 -
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)
September 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 1,436,904.40 1,244,623.82
UMI Property Co., Ltd. Real estate 150,000,000.00 37.57 Shareholder and director 56,350,000.00 53,111,661.08 58,748,957.10
Ruampat Ceramic Co., Ltd. Ceramic Agent 20,000,000.00 49.00 Shareholder and director 9,800,000.00 14,223,509.66 14,394,284.94
Siam Art Ceramic Co., Ltd. Designed ceramic 110,000,000.00 7.50 Shareholder and director 8,250,000.00 7,989,376.88 7,193,699.06
UMI International Co., Ltd. Nutrition food 25,000,000.00 40.00 Shareholder and director 10,000,000.00 9,899,540.00 0.00
Total investments in subsidiaries 85,624,500.00 86,660,992.02 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. Siam Art Ceramic Co., Ltd. and UMI International 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 third quarter for the year 2000 by making retroactive adjustment in each quarter of
the year 2000 and financial statements of the year 1999, representing cumulative change in accounting policy as stated in note 23.2.
- 4 -
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)
September 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)
September 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 September 30,2000,
according to the latest audited financial statements. As at September 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.
- 5 -
7.4 Investment in debt securities
Investment in debt securities holding until maturity consisted of:
The parent company
September 30, 2000 December 31, 1999
Due within Due within
6 - 10 years 6 - 10 years
Government bond 35,707,391.69 0.00
State Enterprise bond secured by Government 9,752,915.10 0.00
Total 45,460,306.79 0.00
8. DEPOSITS WITH COMMITMENT
As at September 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 10,677,211.45
Transfer during the year 210,199,871.52
Less Transfer out of unused and disposal of assets (4,182,433.87)
Cost as of September 30, 2000 3,249,724,722.84
Less Accumulated depreciation (2,200,690,939.54)
Book value as of September 30, 2000 1,049,033,783.30
Less Allowance for diminution in value of assets (23,545,375.13)
Total 1,025,488,408.17
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 1,183,240,204.79
- 6 -
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 September 30,2000. The
company estimates that the net realizable value of fixed assets will be not less than its book value.
As of September 30, 2000 and September 30, 1999, the depreciation for building, machinery and equipment
in operating was Baht 115,240,855.63 and Baht 131,686,563.88, 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.
The company recorded interest expense incurred from loans to purchase new machinery as a part of cost of
assets 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 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.
10. DEPOSIT
Parent Company (Baht)
September 30, 2000 December 31, 1999
Deposit for purchasing machinery 0.00 0.00
Other deposits 4,263,150.28 773,400.00
Total 4,263,150.28 773,400.00
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.
- 7 -
11. OTHER ASSETS Parent Company (Baht)
September 30, 2000 December 31, 1999
Property foreclosed 230,814.93 0.00
Advance payment - share investment 1,251,900.00 1,251,900.00
Concession fee - net 478,704.94 586,979.08
Deferred expenses 1,210,082.96 2,128,333.34
Total 3,171,502.83 3,967,212.42
12. BANK OVERDRAFTS AND LOANS FROM BANK
Parent Company (Baht)
September 30, 2000 December 31, 1999
Bank overdrafts 79,813,169.88 57,940,537.29
Loans from banks 379,974,958.24 363,680,008.24
Total 459,788,128.12 421,620,545.53
As at September 30, 2000 and December 31,1999, the company had bank overdrafts of Baht 122 million
with the interest rate of 14.50 - 15.50% and 8.75 - 11.50% per annum and loans from bank with interest rate of
10.18 - 14.50% and 10.25-12.25% per annum, respectively. The company was sued for defaluted on debt
repayment including accrued interest expenses of Baht 29,958,146.09. The lawsuit has not been finalized yet as
stated in note 20.2.
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