SET Announcements

Consolidated CH. Karnchang Public Co., Ltd. Amounts : Baht 1999 1998 1999 1998 RESTATED RESTATED CASH FLOWS FROM OPERATING ACTIVITIES Net profit (loss) (2,894,641,678) 211,241,579 (2,894,641,678) 211,241,579 Adjustments to reconcile net profit (loss) by net cash provided by (used in) operating activities Depreciation and amortization 775,053,717 738,367,242 129,373,716 141,716,591 Amortization deferred expense 53,761,916 53,260,824 - - Amortization prepaid expenses 405,274,917 335,486,286 - - Write off prepaid withholding tax 8,273,133 71,629,009 - 6,182,584 Allowance for doubtful accounts 855,766,773 8,836,571 729,180,098 7,588,765 Allowance for loss from construction 160,889,826 - - Loss (Gain) from sale of equipment 7,005,889 (994,004) (7,798,549) (1,770,466) Loss from impairment of property , plant and equipment-net 213,336,221 27,716,002 73,859,768 12,777,069 Loss from impairment of investment in land 46,112,953 - 41,834,203 Amortization of construction in progress 11,479,713 - - - Allowance for decline in value of supplies for construction 8,689,643 - - - Loss (Gain) from unrealized exchange rate 65,055,126 (218,346,777) - - Increase (Decrease) in allowance for decline in value of marketable securities 173,290 (1,419,625) 173,290 (1,419,625) Loss (Gain) from sale of investment 1,592,922 (169,070,874) 1,592,922 (152,570,874) Gain from sale of investment in marketable securities (1,346) - (1,346) - Allowance for declining of long term investment 65,007,431 27,291,095 63,291,431 27,291,095 Share of net (profit) loss by equity method 77,743,732 38,007,094 2,156,761,405 (119,660,208) CHANGE IN NET ASSETS AND LIABILITIED Decrease in accounts receivable 533,619,475 29,075,533 320,062,297 114,754,775 Decrease (Increase) in accounts receivable and loan to related companies and joint ventures 32,541,252 (302,115,488) (266,122,586) (22,050,706) Decrease (Increase) in construction contract in progress 1,373,088,404 (1,284,457,223) 347,697,662 83,126,803 Decrease (Increase) in supplies for construction and construction in progress 328,029,356 (207,351,080) (739,585) 43,583,742 Decrease in advance payments to subcontractors 100,817,305 238,967,247 13,826,788 41,569,159 Decrease (Increase) in other current assets 85,599,775 (35,454,732) (18,489,926) 14,755,327 Decrease (Increase) in other assets (161,760,441) (702,233,267) 599,558 (60,390,527) Increase (Decrease ) in accounts and notes payable (940,620,286) (194,249,661) (372,689,383) 318,800,472 Increase (Decrease) in accounts payable and loan from related companies (252,878,656) 505,321,161 (11,661,432) 22,368,867 Increase (Decrease) in advance received from employer and deferred construction revenue (63,339,474) (70,258,905) 314,087,304 (183,023,281) Increase (Decrease) in other current liabilities (151,177,238) 13,505,976 (65,502,745) (42,665,592) Consolidated CH. Karnchang Public Co., Ltd. Amounts : Baht 1999 1998 1999 1998 RESTATED RESTATED Allowance for loss from doubtful accounts from subsidiary companies and joint venture 272,302,862 - - - Increase in minority interest in subsidiaries 85,851,386 14,001,269 - - Net Cash Provided by (Used in) Operating Activities 1,102,647,898 (873,244,748) 554,693,212 462,205,549 CASH FLOWS FROM INVESTING ACTIVITIES Dividend received - - 16,500,000 11,000,000 Profit sharing from joint venture - - 216,959,000 372,300,000 Sales of investments - 750,875,860 5,215,288 734,375,220 Sales of investments in marketable securities 5,216,632 - 1,746 - Purchases of fixed assets (539,745,446) (172,799,406) (122,036,705) (10,569,265) Sales of fixed assets 157,406,305 24,050,786 15,386,433 13,657,673 Decrease (Increase) in short term investments (44,697,989) 369,561,360 (27,499) (574,211) Decrease in notes receivable - financial companies 42,117,187 - - - Purchases in investment in subsidiary companies (243,306,669) (48,790,618) (316,722,333) (47,309,378) Net Cash provided by (Used in) Investing Activities (623,009,980) 922,897,982 (184,724,070) 1,072,880,039 CASH FLOWS FROM FINANCING ACTIVITIES Increase in long-term loans from related companies 165,541,273 - - - Decrease in long-term loans (1,637,690,957) (338,852,960) (658,362,500) (256,675,000) Increase (Decrease) in bank overdrafts and loans from banks (163,565,479) 100,693,749 (132,108,484) 3,394,366 Increase (Decrease) in notes payable - financial institute 100,000,000 (400,000,000) (100,000,000) (200,000,000) Increase in liabilities under discounted notes receivable 2,030,000 1,913,117,500 - - Net Cash Provided by (Used in) Financing Activities (1,533,685,163) 1,274,958,289 (890,470,984) (453,280,634) Effect from exchange rate in cash and cash equivalent (4,282,609) 12,824,239 - - NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT (1,054,047,245) 1,324,611,523 (520,501,842) 1,081,804,954 Cash and equivalent transaction before pledged cash at banks - beginning balance 5,246,007,762 3,908,572,000 1,942,289,673 860,484,720 Cash and equivalent transaction before pledged cash at banks - ending balance 4,187,677,908 5,246,007,762 1,421,787,831 1,942,289,674 Less pledged cash at banks (2,041,383) (20,000) (2,041,383) (20,000) Cash and equivalent transaction after pledged cash at banks - ending balance 4,185,636,525 5,245,987,762 1,419,746,448 1,942,269,674 SUPPLEMENT DISCLOSURES OF CASH FLOWS INFORMATION Interest expenses 681,899,726 1,334,573,067 272,682,813 450,891,676 Income taxes and withholding taxes 238,160,387 372,024,047 74,741,909 87,883,925 Cash and equivalent transaction-ending balance Cash on hand and cash at banks 4,055,912,090 5,059,682,837 1,421,787,831 1,942,289,674 Short term deposits 131,765,818 186,324,925 - - 4,187,677,908 5,246,007,762 1,421,787,831 1,942,289,674 See notes to financial statements CH. KARNCHANG PUBLIC CO., LTD, SUBSIDIARIES AND JOINT VENTURES NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 AND 1998 NOTE 1 - ECONOMIC ENVIRONMENT AND BASIC OF FINANCIAL STATEMENT PRESENTATION The operations of CH.Karnchang Public Company Limited, subsidiaries and joint ventures may continue to be influenced for the foreseeable future by the economic conditions in Thailand and the Asia Pacific Region in general. The financial statements of the company, subsidiaries and joint venture reflect the management's current assessment of the impact of current economic conditions on the financial position of the company subsidiaries and joint ventures. However, actual results could differ from the management estimates. The financial statements of the company, subsidiaries and joint venture have been presented in accordance with the Ministerial Regulation No. 7 (B.E. 2539), under the Public Company Limited Act B.E. 2535) and in conformity with generally accepted accounting principles practiced in Thailand, and are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Thailand. NOTE 2 - TRANSACTIONS WITH RELATED PARTIES The company has had significant transactions with its related parties. The financial statements reflect the effects of these transactions on the normal business basis agreed upon by the companies concerned. The transactions with its related parties have included transactions with company's joint venture. The financial statements as at 31 December had related transactions with related companies as follows. Consolidated CH. Karnchang Public Co.,Ltd. 1999 1998 1999 1998 Related Associated Related Total Subsidiaries Related Associated Related Total Balance Sheets Companies Company Joint Ventures Companies Company Joint Ventures Accounts receivable and construction contract in progress 207,505,368 - 197,579,749 405,085,117 782,998,295 - - - 471,764,829 471,764,829 1,151,152,307 Accounts receivable and loans 83,604,862 380,882,180 107,904,937 572,391,979 602,776,253 161,803,596 26,991,527 376,417,686 127,180,920 692,393,729 812,872,737 Advances payment to subcontractors 64,958,133 - - 64,958,133 104,842,104 - - - - - - Accrued income and other current assets 298,126 31,237,035 9,528,857 41,064,018 78,095,486 10,305,296 - 31,237,035 10,983,458 52,525,789 23,110,290 Investments 1,966,737,588 180,727,917 10,501,271 2,157,966,776 2,194,593,440 538,976,725 1,790,041,501 180,727,917 596,158,645 3,105,904,788 3,343,486,589 Accounts payable - trade 50,246,394 14,955 - 50,261,349 160,758,706 - 20,864,636 - - 20,864,636 56,969,391 Other payables and loans 1,057,674,753 - 5,644,747 1,063,319,500 1,352,668,406 29,026,757 786,840 - 604,043 30,417,640 42,079,072 Advances received from contractor and deferred construction revenues 415,121,163 12,249,456 25,618,854 452,989,473 22,729,987 - - - 25,068,020 25,068,020 21,356,256 Retention and other current liabilities 21,773,504 - 276,154,472 297,927,976 35,670,649 - - - 5,287,397 5,287,397 2,713,151 Loans 165,541,273 - - 165,541,273 - - - - - - Other liabilities - - - - - 25,677,960 - - 3,031,161,785 3,056,839,745 998,792,098 Income Statements Construction activities income 2,524,211,651 79,530,295 768,528,842 3,372,270,788 5,419,282,541 - - - 1,080,533,893 1,080,533,893 1,827,901,762 Sale construction material income 1,629,783 - 484,852,201 486,481,984 10,062,908 248,504,759 1,209,144 - 290,277,553 539,991,456 597,891,593 Management income 25,297,532 - 43,787,218 69,084,750 24,834,881 13,263,239 24,760,280 - 63,462,000 101,485,519 147,853,701 Rental income 23,390,337 - 21,550,049 44,940,386 42,334,304 31,507,050 18,619,088 - 28,823,743 78,949,881 120,435,574 Transportation income 25,941,640 - 453,739 26,395,379 - 14,288,547 25,595,122 - 1,121,820 41,005,489 - Interest income 37,973 20,593,381 5,165,365 25,796,719 15,341,573 9,067,924 37,972 17,622,833 7,486,944 34,215,673 32,595,677 Share of net profit by equity method - (77,743,732) - (77,743,732) (38,007,094) (21,075,941) - (77,743,731) (2,057,941,733) (2,156,761,405) 119,660,207 Dividend and profit sharing - - - - - 16,500,000 - - 216,959,000 233,459,000 372,300,000 Other incomes 7,969,209 5,375 11,824,317 19,798,901 158,741,232 19,934,774 4,913,897 - 19,312,275 44,160,946 86,935,223 Cost of construction activities and cost of goods sold 1,384,991,845 13,977 22,351,810 1,407,357,632 1,488,899,466 45,443,279 - - 2,102,426 47,545,705 165,942,133 Administrative expense and interest expense 49,497,192 - 1,424,323 50,921,515 183,701,667 695,840 - - 2,574,246 3,270,086 5,172,748 Related Transactions in Construction Trade 1. Subcontractors As at December 31, the company had trade transactions with its related parties that the parent company has operated as their subcontractors as follows: Amounts :Baht 1999 1998 Accounts Construction Advance Construction Accounts Construction Advance Construction Receivable Contract in progress Received Income Receivable Contract in progress Received Income - Joint Venture BBCD Bilfinger and Berger Bauaktiengesellschaft, CH. Karnchang Public Co., Ltd. and Dyckerhoff & Widmann AG 274,223,255 - - 409,070,285 - - - - Joint Venture BCKT (Bilfinger and Berger Bauaktiengesellschaft, CH. Karnchang Public Co., Ltd., Kumagai Gumi Co., Ltd., and Tokyu Construction Co., Ltd.) 22,368,003 - 18,921,866 757,717,699 55,148,810 71,518,252 - 789,581,511 - Joint Venture CH. Karnchang Public Co., Ltd., Bilfinger and Berger Bauaktiengesellschaft, Tokyu Construction Co., Ltd. and CH. Karnchang - Tokyu Construction Co.,Ltd. 509,390,140 - 6,146,154 322,816,194 577,405,354 38,009,606 21,356,256 1,038,320,251 Total 805,981,398 - 25,068,020 1,080,533,893 1,041,624,449 109,527,858 21,356,256 1,827,901,762 Less Allowance for doubtful debt (334,216,569) 471,764,829 Since 1998, the parent company has decreased contract value with Joint Venture BBCD due to the joint venture has a large amount of accrued construction in order to maintain liquidity and reduce financial cost. Although the company decreased contract value, it still supports the joint venture for the construction supplies as usual which had transaction with the company and by the subsidiary - Construction Material Supply Co., Ltd. The company set up the said subsidiary company in 1999 in order to engage in producing and distribution construction materials especially. 2. Purchases Supplies and Services for Construction Activities As at December 31, the Company had transactions with related companies which supply materials and other services for the company as follows: Amounts : Baht 1999 1998 Subsidiary - Construction Material Supply Company Limited 21,833,099 - - Bangkok Concrete Industries Company Limited 7,065,209 10,111,589 - Subsidiary, other related companies and joint venture 1,519,332 2,079,072 Total 30,417,640 12,190,661 Related Companies - Mahasiri Company Limited 6,988,256 43,754,401 - Hicrete Production and Technology Company Limited 1,325,448 1,989,607 - Hitech Equipment and Transport Company Limited 6,059,170 - - CK. Office Tower Company Limited 6,472,152 - - Subsidiaries, other related companies and partnerships 19,610 1,113,794 Total 20,864,636 46,857,802 Other Trade Transactions 1. Other Accounts receivable related to construction activity Receivables included trade receivable from related parties, which the parent company has supported for the construction supplies including rental equipment, project management, and transportation services, which are as follows: Amounts : Baht 1999 1998 Subsidiaries - Construction Material Supply Company Limited. 15,856,295 - - Bangkok Concrete Industries Company Limited 15,064,349 28,865,162 - Other subsidiaries 869,528 376,848 Related Companies - Siam Wire Industry Company Limited 8,644,368 2,809,474 - Sermmit Executive Company Limited 7,983,814 11,817,613 - BC Post -Tensioning Company Limited 4,836,159 - - Silasaicrete Limited Partnership 3,485,370 3,882,172 - Phrompratharn Construction Limited Partnership - 5,856,541 - Other related parties 2,041,816 1,251,862 Amounts : Baht 1999 1998 Joint Ventures - Joint Venture CH. Karnchang Public Co., Ltd., Bilfinger and Berger Bauaktiengesellschaft, Tokyu Construction Co., Ltd. and CH. Karnchang - Tokyu Construction Co., Ltd. 8,497,900 5,892,326 - Joint Venture BBCD Bilfinger and Berger Bauaktiengesellschaft, CH. Karnchang Public Co., Ltd. and Dyckerhoff & Widmann AG 384,701,593 464,817,117 - Joint Venture BCKT (Bilfinger and Berger Bauaktiengesellschaft, CH. Karnchang Public Co., Ltd., Kumagai Gumi Co.,Ltd. and Tokyu Construction Co., Ltd.) 33,314,037 18,705,264 - Joint Venture TWCK (Thames Water International (Thailand) Ltd. and CH. Karnchang Public Co., Ltd.) 27,904,414 2,629,548 - Joint Venture of CH. Karnchang - Tokyu Construction Co., Ltd. and Tokyu Construction Co., Ltd. 49,967 4,875,395 513,249,610 551,779,322 Less Allowance for doubtful debt (384,701,593) - Total 128,548,017 551,779,322 Construction Material Supply Company Limited The parent company sold construction supplies to a subsidiary company which has business in producing and distributing asphaltic, asphalt and other construction supplies such as stone, sand and cement with selling price plus operating expenses 3% of acquisition price. The subsidiary company leases : - Rubber plant and concrete plant with rental rate of Baht 2,013,000 per month. - Cars and heavy construction tools with rental rate of Baht 1,350,000 per month. - Land with rental rate of Baht 250,000 per month. - Office building with rental rate of Baht 150,000 per month. Bangkok Concrete Industries Company Limited The parent company has rental income and transportation income from the subsidiary which has business in producing and selling pin piles for construction work of the company's projects with charge rates equivalent to general market rate according to normal business. Joint Venture BBCD Bilfinger and Berger Bauaktiengesellschaft, CH. Karnchang Public Co., Ltd. and Dyckerhoff & Widmann AG The parent company has rental income and transportation income and sale asphalt and other construction supplies sale such as cement with the selling prices equivalent to general market prices according to normal business. Joint Venture BCKT (Bilfinger and Berger Bauaktiengesellschaft, CH. Karnchang Public Co., Ltd., Kumagai Gumi Co., Ltd., and Tokyu Construction Co., Ltd.) The parent company has rental income and transportation income and partial asphaltic sale to the joint venture by selling to the joint venture with the selling prices equivalent to general market prices according to normal business. Joint Venture TWCK (Thames Water International (Thailand) Ltd. and CH. Karnchang Public Co., Ltd.) In 1999, the parent company had transaction from construction maintenance in the approximate amount of Baht 17 million and from management service in the approximate amount of Baht 1 million per month to joint venture. 2. Advance Payments The company had advance payments to subsidiaries and related parties as follows: Amounts : Baht 1999 1998 Subsidiaries - Bangkok Metro Company Limited 485,454 4,633,347 - Other subsidiaries and related parties - 1,588,458 Joint Venture - Joint Venture CKSL (CH.Karnchang Public Co.,Ltd. and SNC-LAVALIN Inc.) 5,285,284 - Total advance payments 5,770,738 6,221,805 3. Loans Disclosure of loans to subsidiaries, related companies and joint ventures. (Amounts :Baht) (more)