SET Announcements

Earnings (deficit) for ordinary share (Baht) As previously (2,894,941,678) 207,907,690 (2,894,941,678) 207,907,690 Change in account policy and accounting for investment - 3,333,889 - 3,333,889 As restated (2,894,941,678) 211,241,579 (2,894,941,678) 211,241,579 Number of shares (shares) 105,000,000 105,000,000 105,000,000 105,000,000 Basic earnings (deficit) per share As previously (27.57) 1.98 (27.57) 1.98 Change in account policy and accounting for investment - 0.03 - 0.03 As restated (27.57) 2.01 (27.57) 2.01 NOTES 5 ADJUSTMENT TRANSACTION TO THE BEGINNING RETAINED EARNINGS In 1999, the company changed its accounting policies for deferred expense previously recognized as other assets to be recognized as expense in order to conform with interpretation no.4 issued by Institute of Certified Accountants and Auditors of Thailand dated February 1, 2000 and changed of accounting for investment from cost method to equity method. As a result, these changes in accounting policy and accounting method have been accounted for retrospectively. The comparative statements for 1998 have been restated to conform to the changed policy and method. The cumulative amount of prior year to be adjusted to reduce the beginning balance of retained earnings of current year was Baht 161,824,400 and previous was Baht 165,158,289. NOTE 6 - CASH ON HAND AND AT BANKS As at December 31, 1999, cash on hand and at banks of the parent company in amount of Baht 2,041,383 was pledged to banks for letter of guarantee. NOTE 7 - SHORT - TERM INVESTMENTS As at December 31, 1999 cash at bank - fixed deposit of the company in the amount of Baht 34,835 (in 1998 : Baht 20,000) and one subsidiary in amount of Baht 2,039,000 and one joint venture in amount of Baht 32.50 million (in 1998 : Baht 25 million) are used as collateral for bank guarantee for electricity usage, bidding, as bank guarantee, forward contracts with commercial banks. NOTES 8 - ACCOUNTS RECEIVABLE As at December 31, 1999, the company had accounts receivable, which were classified by account receivable aging as follows: Amounts : Baht Construction contract receivables Consolidated CH.Karnchang Public Co.,Ltd Related Companies Other Related Companies Other & Joint Ventures Receivables Total & Joint Ventures Receivables Total Less than 3 months 24,864,988 618,018,674 642,883,662 45,129,555 163,220,611 208,350,166 More than 3 to 6 months 18,499,056 - 18,499,056 46,236,081 - 46,236,081 More than 6 to 12 months 149,994,366 - 149,994,366 374,770,741 - 374,770,741 More than 12 months 307,712,740 573,235 308,285,975 334,216,570 573,235 334,789,805 501,071,150 618,591,909 1,119,663,059 800,352,947 163,793,846 964,146,793 Less Allowance for doubtful accounts (202,248,441) (103,634,252) (305,882,693) (334,216,569) - (334,216,569) 298,822,709 514,957,657 813,780,366 466,136,378 163,793,846 629,930,224 Retention accounts as per contracts 4,221,339 127,049,677 131,271,016 5,628,452 22,575,962 28,204,414 Total 303,044,048 642,007,334 945,051,382 471,764,830 186,369,808 658,134,638 As at December 31, 1999, the company set up allowance for doubtful account in amount of Baht 334,216,569 for accounts receivable which are overdue over 1 year, from the joint venture which the company has 35% profit sharing, which faces liquidity problem and the joint venture which has 59.99% profit sharing which there is uncertainty in repayment. In consolidated financial statements, the company stated allowane for doubtful account of accounts receivable which was eliminated to be as other liabilities. As at December 31, 1998, the company had accounts receivable, which were classified by account receivable aging as follows: Amounts : Baht Construction contract receivables Consolidated CH.Karnchang Public Co.,Ltd Related Companies Other Related Companies Other & Joint Ventures Receivables Total & Joint Ventures Receivables Total Less than 3 months 702,626,858 874,527,538 1,577,154,396 368,187,503 212,311,250 580,498,753 More than 3 to 6 months 197,396,885 - 197,396,885 264,366,661 - 264,366,661 More than 6 to 12 months 56,885,054 626,149 57,511,203 84,130,310 - 84,130,310 More than 12 months 214,027,615 - 214,027,615 324,939,975 - 324,939,975 1,170,936,412 875,153,687 2,046,090,099 1,041,624,449 212,311,250 1,253,935,699 Retention accounts as per contracts - 250,491,256 250,491,256 - 58,477,806 58,477,806 Total 1,170,936,412 1,125,644,943 2,296,581,355 1,041,624,449 270,789,056 1,312,413,505 NOTE 9 - CONSTRUCTION INFORMATION As at December 31, 1999 there is construction information as follows: 9.1 Construction contract in progress (Amounts : Baht) Consolidated CH.Karnchang Public Co., Ltd. Contract value 8,279,786,349 - Construction in progress 7,537,654,423 - Less Progress billings (5,152,257,988) - 2,385,396,435 - Less Loss from Construction (17,933,930) - 2,367,462,505 - Retention 131,271,016 28,204,414 9.2 Deferred Construction Revenue (Amounts : Baht) Consolidated CH.Karnchang Public Co., Ltd. Construction Value 30,200,489,619 11,593,085,133 Progress billings 23,381,836,019 8,158,569,210 Less Construction in progress (22,402,313,807) (8,068,260,680) Deferred Construction Revenue 979,522,212 90,308,530 Advance Received 399,848,256 407,404,608 Total 1,379,370,468 497,713,138 In 1999, the joint venture which the company has 35% of profit sharing recorded loss from construction in the approximated amount of Baht 17.93 million due to contract loss when the project will be completed was expected. The whole amount of expected contract loss was recorded. The joint venture which the company has 59.99% of profit sharing recorded loss from construction of completed project which may incur in the future, the said amount was estimated by independent specialist. 9.3 CH.Karnchang - Tokyu Construction Co., Ltd. had construction information included in the consolidated financial statements as follows. (Amounts : Baht) Contract Value 3,450,758,144 Construction in progress 1,946,440,183 Progress billings (1,946,440,183) Advance Received 35,013,035 Retention - NOTE 10 - SUPPLIES FOR CONSTRUCTION AND CONSTRUCTION IN PROGRESS Supplies for construction and construction in progress as at December 31, consist of Consolidated CH.Karnchang Public Co., Ltd. 1999 1998 1999 1998 Supplies for construction 51,834,992 136,252,237 2,247,328 20,422,485 Supplies in progress 3,038,556 61,809,883 - - Construction in progress 30,236,289 197,696,048 18,914,741 - Goods in transit - 8,973,078 - - Total 85,109,837 404,731,246 21,162,069 20,422,485 Less Allowance for decline of value for construction in progress (17,097,590) - - - Total 68,012,247 As at December 31, 1999, construction in progress in amount of Baht 197,696,048 was additional work from main contract such as bridge construction and conjunction with the main contract etc. which the joint venture was in the process of submitting work. In 1999 the joint venture included the said amount to be part of estimated contract costs for main contract and adjusted to reduce in revenue recognition. NOTE 11 - ADVANCE TO SUBCONTRACTORS As at December 31, 1999 and 1998, the joint venture which the company has 50% of profit sharing has outstanding balance of advance payment to the affiliated company in approximated amount of USD 1.58 million and USD 1.62 million, respectively. The joint venture expected to submit the whole construction work in 1999. Because of the significant outstanding amount of advance payment, the joint venture informed that the said affiliated company was not able to ship the supplies on schedule. The joint venture will net off liabilities and received repayment from the affiliated company in the future. NOTE 12 - REFUNDABLE VALUE ADDED TAX - NET As at December 31, 1999 and 1998, the joint venture which the company has 50% of profit sharing had net refundable value added tax in approximated amount of Baht 17.04 million and Baht 23.70 million, respectively, to deduct from Value Added Tax in the future. The joint venture can change to refund its Value Added Tax in cash when its project complete so the joint venture does not adjust for devaluation. NOTE 13 - OTHER ACCOUNTS RECEIVABLE As at December 1999, and 1998, the joint venture which the company has 35% of profit sharing had other receivable resulting from an advance payment to a subcontractor in order to solve the problem and to facilitate the efficient working result in the same area. Therefore, changing in construction contract value due to the operation of the said subcontract, the Expressway and Rapid Transit Authority of Thailand will take responsibility of compensation cost by payment through variation order of joint venture. Since the approval of reimbursement for variation order is in process and the said subcontractor has partly completed its construction, the joint venture paid advance to the said subcontractor which was included in the consolidated financial statements in the approximated amount of Baht 15.4 million which overdue over 1 year. Joint venture sue that company so the company recorded allowance for doubtful account from the whole amount of accounts receivable in 1999. NOTE 14 - NOTES RECEIVABLE - FINANCE COMPANIES As at December 31, 1998 , notes receivable was from finance companies to which the Bank of Thailand has suspended operations and it can not redeem 5 years before due date under the conditions prescribed by the Ministry of Finance. In 1999, the joint venture in which the company has 50% of profit sharing transferred its right to claim in promissory note to related company according to the notice dated May 27, 1999 for principal and interest repayment. In 1998, one subsidiary company had discounted its promissory note to bank. NOTE 15 - INVESTMENTS IN SUBSIDIARIES, RELATED, OTHER COMPANIES AND JOINT VENTURES As at December 31, investments in subsidiary companies and joint ventures comprise of: Percentage Holding by Parent Company Dividend Business or Percentage of profit Cost method Equity method or profit sharing payment Classification Relationship (Amounts : Baht) sharing in Joint Ventures 1999 1999 1998 1999 1998 Subsidiaries Production, distribution, Selling & buying - Construction Material Supply Co.,Ltd. 99.99 14,999,600 17,446,157 - - - construction supplies Co- director - CH. Karnchang Realestate Co., Ltd. and Limited Partnerships 99 158,400,000 262,142,029 280,632,142 - - Investment and construction Co- director - Bangkok Metro Co., Ltd. 79.94 799,400 - - - - Public Utility Concession Co- director - CH. Karnchang-Tokyu Construction Co., Ltd. and Joint Ventures 55 54,999,600 187,019,756 183,239,957 16,500,000 - Construction Co- director - Bangkok Concrete Industries Co.,Ltd. 49.99 74,731,736 72,368,783 - - - 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. 60 - 864,234 2,079,745 - 52,200,000 Construction Co-director Highway Project 40 - 239,831 479,919 - 49,200,000 Expressway Project Percentage Holding by Parent Company Dividend Business or Percentage of profitCost method Equity method or profit sharing payment Classification Relationship (Amounts : Baht) sharing in Joint Ventures 1999 1999 1998 1999 1998 - 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 Sector B Route Phayathai - Bangkhlo 53.20 - 71,496,212 73,420,099 - 198,900,000 Construction Co-director - Second Stage Expressway Project Sector C+ Route Chaeng Watthana - Bang Phun & Bang Sai 59.99 - 306,745,204 632,579,837 122,959,000 - - Second Stage Expressway Project Sector D Route Asoke - Srinakarin 59.99 - 18,076,451 14,200,548 - - - Second Stage Expressway Project Sector C1A Route Ngam Wong wan - Chaeng Wattana 59.99 - 110,063,655 14,826,104 - - - Joint Venture TWCK (Thames Water International (Thailand) Ltd. and CH. Karnchang Public Co., Ltd.) 50 - 21,963,777 89,529,838 94,000,000 72,000,000 Construction Co-director - Joint Venture BCKT Bilfinger + Berger Bauaktiengesellschaft, CH. Karnchang Public Co., Ltd., Kumagi Gumi Co.,Ltd.,and Tokyu Construction Co., Ltd. 25 - 57,864,011 - Construction Co-director Total Investment in subsidiaries and joint ventures 1,126,290,100 1,290,988,189 As at December 31, investment in associated, related and other companies comprise of: Percentage Holding Consolidated CH. Karnchange Public Co.,Ltd. Dividend Business by Parent Company Cost method Amount Amount classification Relationship (Amounts : Baht) 1999 1999 1998 1999 1998 1999 1998 Investment in Related Companies - Pathumthani Water Company Ltd. 29.10 356,899,544 180,727,917 51,022,082 180,727,917 51,022,082 Public Utility Concession Investment - Bangkok Expressway Public Co., Ltd. 13.81 2,133,070,087 1,966,737,588 2,133,070,087 1,790,041,501 1,992,631,048 Public Utility Concession Investment Investment in Other Companies - Nava Finance and Securities Public Co., Ltd. - 27,291,095 27,291,095 27,291,095 27,291,095 27,291,095 Financial Institution None - Bangkok Tokyu Department Store Co.,Ltd - 2,280,000 2,280,000 2,280,000 - - Department Store None - Kruasakul Co., Ltd. 10.14 43,750,000 43,750,000 43,750,000 43,750,000 43,750,000 Real Estate Development None - The Bangkok Club Co., Ltd. 0.57 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 Entertainment None - Chanthaburi Country Club Co., Ltd. 0.25 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Real Estate Development None Investments in Related Joint Ventures 10,501,271 10,501,271 10,501,271 8,845,270 8,845,270 Total Investments 2,578,791,997 2,236,287,871 2,272,914,535 2,055,655,783 2,128,539,495 Less Allowance for devaluation of investments (72,757,095) (72,757,095) 27,291,095 (71,041,095) (27,291,095) Total Investments - Net 2,506,034,902 2,163,530,776 2,245,623,440 1,984,614,688 2,101,248,400 Valuation of Investments 1. As at December 31, 1999 and 1998, investment in Bangkok Expressway Public Company Limited. The parent company invested in the said company at cost in the approximate amount of Baht 1,992.6 million. This investment was valued at fair value in approximated amount of Baht 1,790 million and Baht 3,483.3 million, respectively causing the unrealized loss in approximately amount Baht 202.6 million. Subsidiary company - CH.Karnchang Tokyu Construction Ltd. had this investment at cost in the approximate amount of Baht 140.4 million, carried a fair value in the amount of Baht 176.7 million. Result to the unrealized gain in approximate amount of Baht 36.3 million which is the part of the parent company in the approximate amount of Baht 20 million. Investment in Bangkok Expressway Public Company Limited was recorded in fair value in 1999 and in the lower of cost or net realizable value in 1998. 2. As at December 31, 1999 and 1998, investment in Nava Finance and Securities Public Co.,Ltd. in approximate amount of Baht 27.3 million which the said company had devalued its share capital from Baht 10.00 to Baht 0.01 par value. The company therefore considered to set up the allowance for devaluation of the whole mentioned security. Losses are shown in statement of income of 1998. 3. As at December 31, 1999, The company has considered to set up allowance for devaluation of the whole amount of investment in Kruasakul Co.,Ltd. Purchasing Investment In 1999 The parent company 1. Purchased 1,553,820 shares in the amount of Baht 187.9 million of Pathumthani Water Company Ltd. from the related company - CH.Karnchang Holding Co.,Ltd., according to the minutes of the executive board of directors meeting No.11/1999 held on December 7, 1999. 2. Purchased 849,947 shares in the amount of Baht 94.28 million according to the minutes of the executive board of directors meeting No. 8/1999 held on September 18, 1999. As at December 31, 1999, the company did not transfer the right in ownership of the said investments. Selling Investment In 1998 Parent company - The executive board of directors had a resolution to sell a portion of its investments in Bangkok Expressway Public Company Limited and investment in Nava Finance and Securities Public Co.,Ltd. with a profit of Baht 10.04 million, after net off the loss from selling of investment in Nava Finance and Securities Public Co.,Ltd. in the amount of Baht 75.1 million. Pledged Investments The parent company as at December 31, 1999 had pledged the investments in Bangkok Expressway Public Company Limited and Pathumthani Water Company Ltd. which have fair value in approximately amount of Baht 703.82 million (In 1998 : presented in cost Baht 502.2 million) as the performance guarantee for joint ventures and related company and as a collateral for loan from banks of parent company, loans from banks and financial institutions for associated company. The subsidiary had pledged the investments in Bangkok Expressway Public Company Limited which has fair value in approximate amount of Baht 176.7 million and Baht 343.8 million as at December 31, 1999 and 1998, respectively as the performance guarantee for joint venture. As at December 31, in the company's financial statements, subsidiary company and Joint Ventures, which had liability balances at the end of year were presented as other liabilities comprise: Percentage of share Holding by Parent Company Dividend Business or Percentage of profit sharing Cost method Equity Method or profit sharing Classification Relationship (Amounts :Baht) in joint venture 1999 1999 1998 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 - 3,345,717 2,325,387 - Construction Co - director - Bangkok Metro Co., Ltd. 79.94 799,400 25,677,960 4,807,172 - Public Utility concession Co - director - Joint Venture BBCD Bilfinger and Berger Bauaktiengesellschaft, CH. Karnchang Public Co., Ltd., Dyckerhoff + Widmann AG 35.00 - 3,025,180,543 984,153,065 - 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 - - 7,506,474 - Construction Co - director - Joint Venture CKSL (CH.Karnchang Public Co.,Ltd. and SNC-LAVALIN Inc.) 50.00 - 2,635,525 - - Construction Co - director Total Other Liabilities 3,056,839,745 998,792,098 - NOTE 16 - PROPERTY, PLANT AND EQUIPMENT - NET Property, Plant and equipment net comprised of : CH.Karnchang Public Co., Ltd. (Amounts : Baht) Cost Accumulated depreciation AlIowance for impairment Book value At beginning At ending At beginning At ending At ending At beginning At ending (more)