SET Announcements

Percentage Holding by Parent Company Dividend Business or Percentage of profit sharing Cost method Equity method or profit sharing Classification Relationship in Joint Ventures (Amounts : Thousand Baht) 1998 1998 1998 1997 1998 - Joint Venture BBCD Bilfinger and Berger Bauaktiengesellschaft, CH. Karnchang Public Co., Ltd. Dyderhoff and Widmann AG 35 - - 44,215 - Construction Co-director - Joint Venture BCKT Bilfinger Berger Bauaktiengesellschaft, CH. Karnchang Public Co.,Ltd., Kumagai Gumi Co.,Ltd. and Tokyu Construction Co.,Ltd. 25 - 15,472 - - Construction Co-director Total Investment in subsidiaries and joint ventures 213,400 1,411,262 1,042,572 As at March 31, investment in associated, related and other companies comprise: Percentage Holding Consolidated CH. Karnchang Public Co., Ltd. Dividend Business by Parent Company Amount Amount payment classification Relationship Consolidated (Amounts : Thousand Baht) 1998 1998 1997 1998 1997 1998 Investment in Related Company - Pathumthani Water Company Ltd. 15.00 149,450 135,000 149,450 135,000 - Public Utility Concession Investment - Bangkok Expressway Public Co., Ltd. 16.30 2,527,705 2,380,816 2,387,266 2,240,338 - Public Utility Concession Investment Investment in Other Companies - Nava Finace and Securities Public Co., Ltd. 0.73 113,570 113,570 113,570 113,570 - Finance Institution None - Kruasakul Co., Ltd. 10.14 43,750 43,750 43,750 43,750 - Real Estate Development None - Tokyu Merchandise Development Co., Ltd. 5.00 15,000 15,000 - - - Department Store None - Tokyu Department Store (Thailand) Co., Ltd. 7.00 2,100 2,100 600 600 - Department Store None - The Bangkok Club Co., Ltd. 0.57 3,000 3,000 3,000 3,000 - Recreation None - Chanthaburi Country Club Co., Ltd. 0.25 2,000 2,000 2,000 2,000 - Real Estate Development None Total Investments 2,856,575 2,695,236 2,699,636 2,538,258 Less Allowance for devaluation of investment (17,100) (4,125) (600) - Total Investment - Net 2,839,475 2,691,111 2,699,036 2,538,258 As at March 31, 1998 and 1997, investments 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 March 31, 1998 and 1997, investments in marketable securities of the consolidated financial statements carried a market value of Baht 4,596.4 million and Baht 3,375.4 million, respectively. Investment in marketable security was not devalued to match with the market price due to total market price being over total costs. The auditors opinion of the financial statement in 1997 of the said investment was qualified because of the inadequated allowance for doubtful debt according to report dated February 12, 1998. In the fourth quarter 1997, the Company sold investment in an associated company to a related company; therefore, the associated company in 1997 became to be the related company in 1998. As at March 31, 1998 and 1997, investments in related companies of the consolidated financial statements in the amounts of Baht 500.2 million and Baht 515 million, respectively, were pledged to secure joint ventures and related company, and as collateral for loans from banks and finance institutions of related company. As at March 31, in the companys financial statements, Joint Ventures which had liability balances at the end of period were presented as other liabilities comprise., Percentage Holding by Parent Dividend Business Company or Percentage of profit Amount payment Classification Relationship sharing in joint venture 1998 1997 1998 (Amounts : Thousand Baht) - 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 1,134 - - Construction Co - director - Joint Venture BBCD Bilfinger and Berger Bauaktiengesellschaft CH. Karnchang Public Co., Ltd. Dyckerhoff + Widmann AG 35.00 237,200 - - 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 - 24,499 - Construction Co - director Total Other Liabilities 238,334 24,499 NOTE 8 - PROPERTY,PLANT AND EQUIPMENT - NET As at March 31, 1998 and 1997, some equipments and vehicles from joint venture are under the registration of participant and related company. As at March 31, 1998 and 1997,the value of machinery, equipment and vehicles of a joint venture by profit sharing of the joint venture in the amount of Baht 254 million, and Baht 195 million, respectively, being registration ownership process. NOTE 9 - OTHER ASSETS As at March 31, 1998 and 1997, deferred withholding income taxes in the amounts of Baht 81.7 million and Baht 6.7 million, respectively, are presented in the companys financial statements in the amount of Baht 194 million and Baht 97.7 million, respectively, are presented in the consolidated financial statements. NOTE 10 - BANK OVERDRAFTS AND LOANS FROM BANKS As at March 31, 1998 bank overdrafts and loans from banks of parent company are secured by claims in receipt from construction and companys directors. As at March 31, 1998 and 1997, bank overdrafts and loans from banks of two partnerships are secured by claims in receipt from construction, and pledged by securities of related company, partners and directors. As at March 31, a joint venture which the Company has profit sharing of 35% had loan contracts with domestic commercial banks and foreign banks in the amount of Baht 1,288 million, and foreign currency in the amount of USD 88.4 million and Yen 1,333 million in 1998, and the amount of USD 80.6 million and Yen 1,333 million in 1997, which is guaranteed by the participants. The joint venture has insured against the risk from exchange rates in the approximated amount of USD 7.8 million in 1998. NOTE 11 - LONG - TERM LOANS In 1998 and 1997, the parent company has a long-term loan from foreign finance institutions in the amount of USD 40 million and USD 50 million, respectively, with interest rate SIBOR + 1% per annum for which the Company made an agreement to secure the risk from exchange rate on August 30, 1996 and May 12, 1997. The repayment will be made at six - month periods starting from August 1997. Each of the first four installments are USD 5 million. The remaining amount of repayments is due within 1 year after. In 1998, a joint venture which the company has 59.99% of profit sharing had a long-term loans from domestic commercial banks, which transferred the right of the claim for receipt of repayment from the employer company according to the construction agreement to the bank as collateral of the said loan and guaranteed by the participants. Loans comprise: The approximated amount of Baht 750 million in 1998 and Baht 250 million and USD currency equals to Baht 125 million in 1997, by dividing the proportion of the loan to USD currency with interest rate at LIBOR + 2.5% and Baht currency with interest rate at MLR and MLR + 1%. The joint venture converted loan from USD currency to Baht currency with interest rate MLR+0.5% on June 19, 1997. The repayment of principle will be made every month in approximated amount of Baht 100 million per each, starting from July 1998. In the amount of Baht 300 million with interest rate MRR + 3.75%, by the repayment of principle is in monthly basis, in the amount of Baht 30 million per each, starting from August 1998, and the amount of Baht 1,200 million with interest rate MLR and MLR+0.5%, by the repayment of principle is in monthly basis in the amount at least 50% of construction revenue received each month, but not less than Baht 100 million per month, starting from October 1998 or when the joint venture has received revenue from the contractor totalling not less than 55% of the contract price, whichever comes first. A joint venture which the company has profit sharing of 35% has a long-term loan from a local commercial bank in the amount of Baht 688 million in 1998 and Baht 400 million in 1997, the repayment seperated into 4 installments amount according to the contractual agreement ,the first installment will be on January 1999 and from a finance company in the amount of Baht 633.97 million in 1998 and Baht 939 million and US Dollar 4 million in 1997 the joint venture converted loan from US Dollar currency to Baht currency as at December 19, 1998 in the amount of Baht 633.97 million, by the repayment of principle each month dividing to 27 installments, with the first 12 repayment installments at Baht 10 million each, and the following 14 installments in the amount of Baht 35 million each, and the final installment is in the remaining amount in accordance with the revised agreement, with repayment starting on December 1997. Loan from a finance company have been guaranteed by the participants. In 1998 and 1997, the current portion of the long - term loan included liabilities under discounted notes receivable in approximated amount Baht 1,222 million and Baht 1,863 million, respectively, of a joint venture which the company has 35% of profit sharing is shown under current liabilities. NOTE 12 - INCOME AND COST OF CONSTRUCTION ACTIVITIES In the first quarter 1998, the parent company had made adjustment to reduce the construction activities income in approximated amount of Baht 93 million, since there were some changes in the budget cost arising from increase of costs of construction material, wages, subcontractors, charge coupled with some parts of the construction plan were stopped due to the discovery of the ancient material in the construction area and recorded construction activities cost of one project increased in the approximated amount of Baht 90 million which the company has already realized entired loss on the entire contract in 1997 because the current estimation of total contract cost excess the total contract revenue . NOTE 13 - GAIN (LOSS) FROM CURRENCY EXCHANGE The company has gain (loss) from currency exchange for the three- month periods ended March 31, as follows: Consolidated Ch. Karnchang Public Co.,Ltd (Amount:Thousand Baht) 1998 1997 1998 1997 Gain (Loss) from currency exchange - Realized 92,950 3,181 (6,602) - -Unrealized 383,781 (1,243) 3,282 (2,973) Total 476,731 1,938 (3,320) (2,973) As at March 31, 1998, the Company, subsidiary companies and joint ventures had net liabilities in foreign currency which was equivalent to US Dollar as follows: Amounts : Thousand US Dollar CH. Karnchang Public Co.,Ltd. 47,991 CH. Karnchang Public Co.,Ltd., subsidiary companies and joint ventures 95,348 CH. Karnchang Public Co.,Ltd. has secured the risk from exchange rate of long term loan in the amount of USD 47.8 million. CH. Karnchang Public Co.,Ltd subsidiary companies and joint ventures have secured the risk from exchange rate in the amount of USD 50.7 million. NOTE 14 - DIVIDEND,LEGAL RESERVE AND PROFIT SHARING In the 1997, Ordinary Shareholders Meeting held on April 28, 1997, a resolution was passed approving payment of dividend in the amount of Baht 210 million and appropriated legal reserve 5% of net profit. In the 1997, Ordinary Shareholders Meeting of subsidiary company held on April 29, 1997, a resolution was passed approving payment of dividend in the amount of Baht 15 per share, totalling Baht 15 million. A joint venture paid the second profit sharing from project has been successfully completed to the participants in accordance with a letter dated January 10, 1998, in the amount of Baht 40 million. A joint venture paid the first profit sharing from project has been successfully completed to the paticipants in accordance with a letter dated February 2, 1998, in the amount of Baht 20 million. NOTE 15 - COMMITMENTS As at March 31, 1998, the Company had commitments from loan collateral and letter of guarantee issued by banks to joint venture which the company is one of participants in approximated amount of Baht 6,244 million. As at March 31, the Company had commitments from letter of guarantee issued by banks as follows: (Amounts : Thousand Baht) Consolidated CH. Karnchang Public Co., Ltd. 1998 1997 1998 1997 Guarantee of construction contract, bid, and payment 6,867,454 6,197,286 1,373,073 1,829,881 Advance Payment Bond and Retention 4,827,137 3,708,206 213,521 - Guarantee of loss revenue due to damage caused by transportation, transportation of segments, retention bond, rental equipment and electricity 958,398 292,553 588,223 - In consolidated financial statements, joint venture made the forward foreign exchange contract for future liability in foreign currency as follows; Foreign Currency Amounts : Thousand US Dollar 3,228 French Franc 2,585 YEN 13,340 NOTE 16 - RECLASSIFICATION For 1997, certain transactions in the financial statements have been reclassified to conform with the 1998 presentation. NOTE 17 - DISCLOSURE SEGMENT INFORMATION The company, subsidiaries and joint ventures operations construct in Bangkok and region therefore no segment information is provided.