SET Announcements

Property, Plant and Equipment Property plant and equipment are stated at cost less accumulated depreciation. Depreciation are computed by the straight-line method over the estimated useful lives as follows: Building 20 years Equipment 5 years Leasehold improvement according to remaining project value For the equipments acquired by a partnership before 1993, depreciation was computed by straight line method from the book value at January 1, 1993, the useful life of 5 years. Interest Capitalized Joint Venture capitalized interest as part of the assets which will be stopped as and when the construction is completed. Actual interest expense for the year ended December 31, 1997 which is proportionately capitalize to assets in joint ventures is in the amount of Baht 24,692,127. Company Establishment Expenses Company Establishment expenses are amortized within five years from date of operating. Pre-operating Expense Pre-operating expense is amortized according to the project - period from the date of commencement of the operations. Deferred Charges Deferred charges are related to underwriter fees will be amortized as expenses within two years, expense of providing finance, successful biding project, leasehold improvement will be amortized according to the related contracts and loan periods. Foreign Currency Transactions Foreign currency transactions during the years are translated to Baht at the exchange rate at the transaction dates. Foreign currency balances at the balance sheet date are translated at the exchange rates ruling on that date. Foreign currency balances which are secured by the agreement are translated using exchange rate of the agreement. Exchange gains and losses are included in determining income. Earnings (Loss) per Share Earnings (loss) per share is calculated by dividing the net profit (loss) for the year by the number of shares outstanding at the end of year and the weighted average number of shares outstanding during the year in 1997 and 1996 respectively. NOTES 5 - CASH IN HAND AND BANKS As at December 31, 1996, cash at bank of subsidiary company totalling Baht 5 million is used as collateral for letters of credit and bank guarantees. NOTES 6 - ACCOUNTS RECEIVABLE As at December 31, accounts receivable comprise: (Amounts : Baht) Consolidated CH. Karnchang Public Co., Ltd. 1997 1996 1997 1996 Construction contract receivable 2,192,448,928 974,272,725 1,346,991,058 764,017,592 Retention accounts as per contracts 131,858,400 100,773,857 80,177,222 54,851,771 2,324,307,328 1,075,046,582 1,427,168,280 818,869,363 Less Allowance for doubtful accounts (8,038,060) - - - Accounts receivable - net 2,316,269,268 1,075,046,582 1,427,168,280 818,869,363 NOTE 7 - SUPPLIES FOR CONSTRUCTION AND CONSTRUCTION IN PROGRESS As at December 31, supplies for consturction and construction in progress comprise: (Amounts : Baht) Consolidated CH. Karnchang Public Co., Ltd. 1997 1996 1997 1996 Supplies for construction 114,707,544 95,711,818 39,839,300 56,022,400 Construction in progress 82,672,621 - 24,166,927 - 197,380,165 95,711,818 64,006,227 56,022,400 NOTE 8 - NOTE RECEIVABLE - FINANCE COMPANY Promissory notes in finance companies in the amount of Baht 147,821,517 were formally promissory notes in finance companies which Bank of Thailand has suspended operations and it can not redeemed within 5 years under the conditions prescribed by the Ministry of Finance. NOTE 9 - INVESTMENTS IN SUBSIDIARIES, ASSOCIATED, RELATED, OTHER COMPANIES AND JOINT VENTURES As at December 31, investments in subsidiary companies and joint Percentage Holding by Parent Company Business or Percentage of profit sharing Cost method Equity method Dividend Classification Relationship (Amounts : Baht) in Joint Ventures 1997 1997 1996 payment ventures comprise: (Amounts : Baht) Subsidiaries - CH. Karnchang Real Estate Co., Ltd. and Partnerships Limited 99 158,400,000 281,467,315 244,834,924 - Investment and construction Co-director - CH. Karnchang-Tokyu Construction Co., Ltd. and Joint Ventures 55 55,000,000 165,278,184 146,775,850 8,250,000 Construction Co-director Equity in Joint Ventures - Joint Venture CH. Karnchang Public Co., Ltd. Tokyu Construction Co., Ltd. in joint venture with CH. Karncahng - Tokyu Construction Co., Ltd. Highway Project 60 - 42,581,338 25,070,452 - Construction Co-director Expressway Project 40 - 48,499,041 44,977,155 - - Joint Venture CH. Karnchang Public Co., Ltd.Bilfinger + Berger Bauaktiengesellschaft Tokyu Construction Co., Ltd. and CH. Karnchang - Tokyu Construction Co., Ltd. - Second Stage Expressway Project Part B Route Phayathai - Bangkhlo 53.20 - 279,522,415 351,036,650 56,100,000 Construction Co-director Percentage Holding by Parent Company Business or Percentage of profit sharing Cost method Equity method Dividend Classification Relationship (Amounts : Baht) in Joint Ventures 1997 1997 1996 payment - Second Stage Expressway Project Part C+ Route Chaeng Watthana - Bang Phun & Bang Sai 59.99 - 318,526,732 29,883,147 - - Second Stage Expressway Project Part D Route Asoke - Srinakarin 59.99 - 3,637,008 - - - Second Stage Expressway Project Part C1A Route Ngam Wong wan - Chaeng Wattana 59.99 - 15,184,873 - - - Joint Venture TWCK (Thames Water International (Thailand) Ltd. and CH. Karnchang Public Co., Ltd. 50 - 113,785,787 53,415,996 - Construction Co-director - Joint Venture BBCD Bilfinger and Berger Bauaktiengesellschaft, CH. Karnchang Public Co., Ltd. Dyderhoff and Widmann AG 35 - - 33,004,532 - Construction Co-director Total Investment in subsidiaries and joint venture 213,400,000 1,268,482,693 928,998,706 As at December 31, investment in associated, related and other companies comprise: Percentage Holding Consolidated CH. Karnchange Public Co., Ltd. Business by Parent Company Amount Amount Dividend classification Relationship (Amounts : Baht) 1997 1996 1997 1996 payment Investment in Related Company - Pathumthani Water Company Ltd. 17.10 102,940,000 135,000,000 102,940,000 135,000,000 - Public Utility Concession Investment - Bangkok Expressway Public Co., Ltd. 16.93 2,628,596,027 2,380,816,967 2,488,156,989 2,240,377,928 - Public Utility Concession Investment Investment in Other Companies - Nava Finace and Securities Public Co., Ltd. 0.73 113,569,500 113,569,500 113,569,500 113,569,500 - Financial Institutions None - Kruasakul Co., Ltd. 10.14 43,750,000 43,750,000 43,750,000 43,750,000 - Real Estate Development None - Tokyu Merchandise Development Co., Ltd. 5.00 15,000,000 15,000,000 - - - Department Store None - Tokyu Department Store (Thaialnd) Co., Ltd. 7.00 2,100,000 2,100,000 600,000 600,000 - Department Store None - The Bangkok Club Co., Ltd.0.57 3,000,000 3,000,000 3,000,000 3,000,000 - Recreation None - Chanthaburi Country Club Co., Ltd. 0.25 2,000,000 2,000,000 2,000,000 2,000,000 - Real Estate Development None Total Investment 2,910,955,527 2,695,236,467 2,754,016,489 2,538,297,428 - Less Allowance for devaluation of investment (17,100,000) - (600,000) - - Total Investment - Net 2,893,855,527 2,695,236,467 2,753,416,489 2,538,297,428 - As at December 31, investment in Tokyu Merchandise Development Co., Ltd. and Tokyu Department Store (Thailand) Co., Ltd., totalling cost of Baht 17.1 million, as at July 31, 1996, had more deficit than the amount of issued share capital. The company has considered to set up allowance for devaluation of investment to cover cost. As at December 31, 1997 and 1996 in consolidated financial statements investments in marketable securities carried a market value of Baht 3,499,120,840 and Baht 3,484,191,175 respectively. In 1997, the company sold investments in an associated company to a related company in the amount of Baht 117,275,391 in accordance with director meeting December 8, 1997, to make it became related company in 1997. The company received payment for shares on December 23, 1997, and recorded net income after tax in the amount of Baht 10,510,793, with all of the shares being transferred after released from collateral. As at December 31, 1997 and 1996 in consolidated financial statements investments in related companies in the amounts of Baht 482.21 million and Baht 515 million, respectively, were pledged to secure joint ventures and related company, and as collateral for loans from banks and financial institutions of related company. In 1996 Joint venture has other income from negotiation to reduce design cost which was recorded in cost of constriction in the approximate amount of Baht 41 million. As a result, the share of equity and the other income from Joint Venture are increased net of tax in the amount of Baht 15.27 million. As at December 31, in the companys financial statements, Joint Ventures which had liability balances at the end of year were presented as other liabilities comprise., Percentage Holding by Parent Company or Percentage Business of profit sharing Amount Dividend Classification Relationship (Amounts : Baht) in joint venture 1997 1996 payment - Joint Venture Phuket Consortium Consists of CH. Karnchang Public Co., Ltd. Thames Water International (Thailand) Co., Ltd, Index International Group Co., Ltd. and Trio Consultant Co., Ltd. 93.00 909,415 15,583,443 - Construction Co - director - Joint Venture BBCD Bilfinger and Berger Bauaktiengesellschaft CH. Karnchang Public Co., Ltd. Dyckerhoff + Widmann AG 35.00 662,533,326 - - Construction Co - director - Joint Venture BCKT Bilfinger and Berger Bauaktiengesellschaft CH. Karnchang Public Co., Ltd. Kumagai Gumi Co., Ltd. and Tokyu Construction Co., Ltd. 25.00 21,030,765 37,377,222 - Construction Co. - director Total Other Liabilities 684,473,506 52,960,665 NOTE 10 - PROPERY, PLANT AND EQUIPMENT - NET As at December 31, property, plant and equipment comprised: (Amounts : Baht) Consolidated CH. Karnchang Public Co., Ltd. 1997 1996 1997 1996 Land and improvement 116,585,765 79,330,298 67,908,953 67,831,953 Building and construction 168,241,762 164,586,947 107,940,184 106,468,037 Leasehold improvement 314,125,933 313,102,752 - - Machinery and equipment 2,697,811,165 1,907,714,412 768,443,181 640,875,385 Furniture fixtures and office equipment 139,995,816 96,053,267 45,588,399 33,384,753 Vehicles 366,906,982 217,737,908 120,423,652 117,492,459 Asset in transit and in progress 145,280,510 185,391,542 734,546 26,906,974 3,948,947,933 2,963,917,126 1,111,038,915 992,959,561 Less Accumulated depreciation (1,360,179,527) (822,882,732) (535,432,713) (397,177,875) Property, Plant and Equipment - net 2,588,768,406 2,141,034,394 575,606,202 595,781,686 In the consolidated financial statements depreciations for the year 1997 and 1996 are in the amount of Baht 603,212,568 and Baht 365,660,311 respectively. In the companys financial statements depreciations for the year 1997 and 1996 are in the amount of Baht 143,663,182 and Baht 109,843,987 respectively. As at December 31, 1997 and 1996 some equipments and vehicles from joint ventures are under the registration of participant and related company. As at December 31, 1997 and 1996, the value of machinery, equipment and vehicles of a joint venture are in included in accordance to the share of the joint venture amounting to Baht 111 million, and Baht 206.5 million respectively, and have net yet been registered as joint venture assets. Leasehold improvement is amortized according to the remaining project period which is more than land rent contracts life. The joint venture expects that the contract life will be extended due to the leaser is a related company. NOTE 11 - LAND FOR CONSTRCTION - NET Land for construction is for digging sand in construction, in 1997 and 1996 and is not amortized as it has not been used, the executive confirmed that there was no material amount of sand digged up from the land of business. In 1997 and 1996 the company purchased land valued at Baht 21 million and Baht 122.02 million respectively. (More)