SET Announcements

of year Increase Disposal of year of year Depreciation Disposal of year of year of year of year Land and improvement 163,478,762 - - 163,478,762 2,483,295 828,024 - 3,311,319 (73,859,768) 160,995,467 86,307,675 Building and construction 107,940,184 - - 107,940,184 28,574,137 5,397,009 - 33,971,146 - 79,366,047 73,969,038 Machinery and equipment 739,595,357 113,194,202 (51,489,601) 801,299,958 509,881,443 94,486,357 (44,181,758) 560,186,042 - 229,713,914 241,113,916 Furniture fixture and Office equipment 50,265,981 4,070,977 (421,438) 53,915,520 28,376,849 8,319,788 (306,413) 36,390,224 - 21,889,132 17,525,296 Vehicles 122,258,218 4,771,526 (1,687,953) 125,341,791 86,081,301 20,342,538 (1,522,937) 104,900,902 - 36,176,917 20,440,889 Total 1,183,538,502 122,036,705 (53,598,992) 1,251,976,215 655,397,025 129,373,716 (46,011,108) 738,759,633 (73,859,768) 528,141,477 439,356,814 Consolidated Cost Accumulated depreciation AlIowance for impairment Book value At beginning Aquisition Increase Disposal At ending At beginning Aquisition Depreciation Disposal At ending At ending At beginning At ending of year of new enterprise of year of year of new enterprise of year of year of year of year Land and improvement 174,202,506 92,252,875 24,062 - 266,479,443 2,483,295 - 828,024 - 3,311,319 (85,174,884) 171,719,211 177,993,240 Building and construction 250,703,086 98,137,755 3,040,505 (25,558,667) 326,322,679 100,595,825 12,026,714 50,714,322 (22,076,452) 141,260,409 - 150,107,261 185,062,270 Leasehold improvement 324,235,491 - 1,310,132 (60,000) 325,485,623 218,204,552 - 92,813,648 - 311,018,200 - 106,030,939 14,467,423 Machinery and equipment 2,885,113,598 180,039,742 109,331,803 (153,840,841) 3,020,644,302 1,469,445,132 77,207,799 440,831,141 (21,974,039) 1,965,510,033 (121,206,962) 1,415,668,466 933,927,307 Furniture fixture and Office equipment 149,551,475 4,546,085 19,432,963 (10,047,634) 163,482,889 92,554,108 2,206,249 27,462,532 (5,914,792) 116,308,097 (1,567,777) 56,997,367 45,607,015 Vehicles 375,488,505 4,778,947 20,963,617 (53,591,919) 347,639,150 180,298,153 2,195,257 68,768,031 (32,266,184) 218,995,257 (5,386,598) 195,190,352 123,257,295 Assets in transit and in progress - 185,800 5,701,160 (2,837,005) 3,049,955 - - - - - - - 3,049,955 Total 4,159,294,661 379,941,204 159,804,242 (245,936,066) 4,453,104,041 2,063,581,065 93,636,019 681,417,698 (82,231,467) 2,756,403,315 (213,336,221) 2,095,713,59 61,483,364,505 Depreciation Consolidated CH. Karnchang Public Co., Ltd. 1999 1998 1999 1998 Depreciation 775,053,717 738,367,242 129,373,716 141,761,591 Other (Amount : Baht) Consolidated CH. Karnchang Public Co., Ltd. 1999 1998 Loss from impairment of fixed assets 213,336,221 73,859,768 Fixed assets which have not been transferred the ownership 39,428,555 62,984 Book value of fixed assets which have not been in used 246,297,842 - Book value of fixed assets which ceased their operation and waiting for sell 37,779,266 - Book value of fixed assets which were fully depreciated but still in use 426,265,605 291,812,170 In 1999, loss from impairment of fixed assets was estimated by assumption that these assets have no more future economic benefits or expected to be sold as lower of book value. The parent company The ownership of some vehicles belongs to a subsidiary because the ownership right was not yet transferred. The joint ventures, which the company has 59.99 % and 35% of profit sharing The ownership of equipment and vehicle belong to the participant or related joint venture or contractor. In case the right belongs to contractor the joint venture clarifies it is for convenience for maintenance of the said vehicles. However, the contractor confirmed that joint venture has the right of ownership. The joint venture which the company has 25% of profit sharing The joint venture leased land of another company for its factory to produce construction materials which the lease agreement period did not cover its project period, which expired on May 31, 2000. The joint venture could renew the agreement identified in contract. NOTE 17 - INVESTMENT IN LAND As at December 31, 1999, investment in land consist of: Consolidated CH.Karnchang Public Co., Ltd. 1999 1998 1999 1998 Cost 229,608,690 230,447,723 187,377,069 187,377,069 Less Allowance for decline in value of investment in land (73,828,955) (27,716,002) (54,611,271) (12,777,069) Book Value 155,779,735 202,731,721 132,765,798 174,600,000 The parent company, subsidiaries and joint ventures appraised the value of investment in land and adjusted to be fair value equivalent to the price appraised by Land Department in 2000. NOTE 18 - ADVANCE PAYMENT FOR PROJECTS As at 31 December, advance payments for projects consists of : Consolidated CH.Karnchang Public Co., Ltd. 1999 1998 1999 1998 Advance Payment 133,580,495 69,350,012 - - Less Allowance for doubtful accounts (5,315,011) - - - Book Value 128,265,484 69,350,012 - - Advance payment for project was advance paid for employer, the expenses for project acquisition of subsidiary- Bangkok Metro Company Limited which is bidding the concession. In 1999, the said subsidiary has made memorandum of understanding with employer and can refund advance payment from employer in case of not receiving concession at the end. The subsidiary set up allowance for doubtful accounts for the amount which there is uncertainty to be refunded in amount of Baht 5,315,011 million. NOTE 19 - WITHHOLDING TAX As at 31 December, 1999 and 1998, there was withholding tax pending for rebate not over 3 years which parent company, subsidiaries, and joint ventures have not rebated. NOTE 20 - BANK OVERDRAFTS AND LOAN FROM BANKS As at December 31 bank overdrafts and loans from bank consist of: Consolidated CH.Karnchang Public Co.,Ltd 1999 1998 1999 1998 Loans from banks 2,958,492,274 2,852,551,198 873,129,685 957,278,511 Plus (Less) different in current value of foreign currencies committed for repayment which (over) under as compared to contract rates 2,227,739 44,524,999 4,401,000 520,000 2,960,720,013 2,897,076,197 877,530,685 957,798,511 Bank overdrafts 118,920,194 159,105,805 4,851,642 8,159,140 Trust Receipt - 48,533,160 - 48,533,160 3,079,640,207 3,104,715,162 882,382,327 1,014,490,811 As at December 31, bank overdrafts and loans from banks are as follows: In 1999 Parent Company There were certain loans in foreign currency which are promissory notes in the amount of USD 5 million with interest rate of 9.0889% per annum. The company had a contract to secure the risk from exchange rate. Joint venture which the company has 35% of profit sharing Engaged loan agreement with local and foreign commercial banks in Baht currency in the amount of Baht 1,150 million and in foreign currency in the amount of USD 38.57 million and the approximated amount of Yen 8,981.66 million. The joint venture had the contracts to secure the risk from exchange rate in approximate amount of USD 10.37 million. 1998 Parent Company There were certain loans in foreign currency which are promissory notes in the amount of USD 5 million with interest rate of 8.3681% per annum, loan in the amount of USD 2 million with interest rate of 20.85% per annum which the company fully insured the risk from foreign exchange, and trust receipt in the amount of Baht 48.5 million . Joint venture which the company has 35% of profit sharing Engaged loan agreement with local and foreign banks in Baht currency in the amount of Baht 1,150 million Baht and in foreign currency in the amount of USD 36.04 million and the approximated amount of Yen 8,982 million. The joint venture had the contracts to secure the risk from exchange rate in approximate amount of USD 7.8 million. Pledge as collateral Parent company Bank overdraft and loans from banks were secured by the right to claim the receipt of revenue from construction and by the company's directors. Subsidiary-CH.Karnchang Real Estate Co.,Ltd. Bank overdraft and loans from banks of 2 partnerships which are the investment in subsidiaries were secured by the right to claim for receipt of revenue from construction, mortgaged by securities of related company, partners and the company's directors. Joint venture the company has 35% of profit sharing The joint venture had certain loans guaranteed by the parent company, joint ventures and letter of consent to deduct from discounted promissory notes issued by the employer. NOTE 21 - LIABILITIES UNDER DISCOUNTED NOTES RECEIVABLE As at December 31, liabilities under discounted notes receivable consist of : (Amounts : Baht) 1999 1998 Liabilities under discounted notes receivable 2,897,163,500 2,899,193,500 Less Current portion of notes receivable (2,897,163,500) (1,816,444,000) Liabilities under discounted notes receivable - Net - 1,082,749,500 Liabilities under discounted notes receivable of the joint venture which the company has 35% of profit sharing resulting from the discounted of notes receivable from the employer with 4 banks, the issuance date on these notes receivable are varied. NOTE 22 - LONG-TERM LOANS As at December 31, long-term loans comprise of: (Amounts : Baht) Consolidated CH.Karnchang Public Co.,Ltd. 1999 1998 1999 1998 Long-term loans 995,018,783 3,021,437,240 240,000,000 1,491,150,000 Less Difference in value of foreign currencies committed for above loans which over as compared to contract rate - (392,787,500) - (392,787,500) 995,018,783 2,628,649,740 240,000,000 1,098,362,500 Less Current portion of long-term loans (732,900,725) (2,086,253,982) - (898,362,500) Long-term loans-Net 262,118,058 542,395,758 240,000,000 200,000,000 As at December 31, long term loans are as follows: Parent Company - In 1999 the parent company has a long-term loan from a commercial Bank in the amount of Baht 240 million which will be settled every 3 months each of Baht 37.5 million starting from March 2001 and ending in year 2002 at interest rate MLR + 1% and pleading share, investment in Bangkok Expressway Public Company Limited 22 million shares as collateral, which had to maintain value of pledging share not less than 139% of the outstanding loans and the company's director guarantee as joint borrower. As at December 31, 1999 the investment has the amount of Baht 407 million. - In 1998, the parent company had a long-term loan from foreign financial institutions in the amount of USD 35 million, with interest rate SIBOR + 1% per annum. The company made an agreement to secure the risk from exchange rate of the whole loan. The repayments were made every 6 months starting from August 1997.Each of the first four installments was USD 5 million and the remaining amount of repayments was due within 1 year after that. And the long-term loan in amount of Baht 200 million is promissory note which will be due in 2000 with interest rate of MLR+1.5% per annum. The joint venture which the company has 59.99% of profit sharing - The joint venture had a long-term loans from domestic commercial banks, by transferring the right of the claim for receipt of repayment from the employer according to the construction agreement to the bank as collateral of the said loan. Certain loans are guaranteed by the participants which are comprised of: In 1999 In amount of Baht 256.7 million (In 1998 : Baht 1,200 million) with interest rate of MLR, the repayment was on the monthly basis at least 50% of construction work received each month not less than Baht 100 million starting October 1998 or when joint venture received payment from employee not less than 55% of contract price whichever is earlier. In December, 1998, the joint venture changed the condition of principal repayment to be repaid not less than 20% of construction revenue each month starting January, 1999 or when the joint venture received contract value not less than Baht 3,300 million whichever is earlier and it must repay the principal at least Baht 1,000 million within February 2000 and repay the rest of Baht 200 million within June, 2002. The condition of loan repayment may be changed, depend on the ability of employer's work payment in the future. In 1999, the joint venture had requested to change condition of loan repayment and was approved by bank new condition to start, the repayment in October 1999 and complete within April 30, 2000. As 31 December 1999, the joint venture was in process of transferring the right to claim as additional work from construction contract, second stage expressway route Asok to Sri Nakarin to the bank. In 1998 In the approximated amount of Baht 279.6 million with interest rate of MLR and MLR+0.5%, the repayment of principle will be made on a monthly basis in approximate amount of Baht 100 million per installment, starting from July 1998. Since October 1998, the joint venture had repaid the principal on monthly basis in amount of 55% monthly of actual work received of billings from the employer which is less than Baht 100 million. The repayment would be completed within June 1999. In the amount of Baht 150 million with interest rate of MRR+3.75%, the repayment was on a monthly basis in the amount of Baht 30 million per installment, starting from August 1998. And the amount of Baht 1,200 million, the repayment was on a monthly basis in the amount at least 50% of construction work received each month, but not less than Baht 100 million, would be completed within April 30, 2000. The joint venture which the company has 35% of profit sharing The joint venture has a long-term loan from a local commercial bank in the amount of Baht 688 million in 1999 and 1998, the repayment is on monthly basis and separated into 4 installments according to the agreement, the said amount would be repaid within November 1999 but the joint venture cannot comply with schedule, the joint venture was in process of negotiation for changing the repayment schedule. And loan from another commercial bank, in the amount of Baht 533.97 in 1999 and 1998. In 1999 the said commercial bank had been transferred the right and benefit according to the loan agreement, including the rights under all the securities agreements, both at present and in the future, from a finance and securities company, including the same conditions of payment, but with a change in the payment schedule of principal in January and February 2000 at approximately Baht 226.98 million per month. At the report date no payment for the said loan has been found, which may have and impact on the business by which the bank has a right to demand partial payment or the whole payment without advance notice and immediate cancellation of the loan agreement. The long-term loan of the said joint venture was guaranteed by the participants. The joint venture which the company has 25% of profit sharing In 1999 and 1998, had a long term loan from a local commercial bank in the amount of Baht 500 million with interest rate of MLR and MLR + 1.25% respectively, and in 1999 the repayment of principal was changed to when the joint venture received the construction revenue from the employer in the amount over than 68% of the project value. The repayment are made in amount of 20% of monthly work received of Baht currency portion from construction work. The said loan would be repaid within May 31, 2001 by transferring the right of the claim for receipt of repayment from the employer in Baht currency portion according to the construction agreement to the bank as collateral of the said loan and guaranteed by the participants. In 1999 and 1998, the current portion of long - term loan which included current portion of discounted notes receivable in approximated amounts of Baht 2,897.16 million and Baht 1,816.44 million respectively, of the joint venture which the company has 35% of profit sharing is shown under current liability. NOTE - 23 REVENUE FROM CONSTRUCTION Revenue from construction consist of Consolidated CH. Karnchang Public Co., Ltd. (Amounts : Baht) 1999 1998 1999 1998 Revenue on percentage of completion method 7,053,526,232 11,814,795,342 2,301,289,582 3,275,811,717 Revenue on workdone and billed to customer 564,980,918 1,191,770,976 17,078,892 - Gain on exchange rate 297,330,575 216,935,286 - - Total 7,915,837,725 13,223,501,604 2,318,368,474 3,275,811,717 The joint venture which the company has profit sharing 25% The project value of the said joint venture consists of Baht and Yen currency portions, the value of project will vary in accordance with foreign exchange rate. If using the exchange rate identified in construction contract in translation, the project value was lower than estimated budget cost. When using the exchange rate as at December 31, 1999 in translation, this project value is still higher than estimated budget cost. Unrealized gain (loss) on exchange rate of construction revenue In 1999 In consolidated financial statements , the construction income of a joint venture which the company has 25% of profit sharing have included gain from exchange rate arising from increasing of the exchange rate which was identified in the contracts of foreign currency income portion in the approximate amount of Baht 297.33 million which included unrealized gain from exchange rate in approximate amount of Baht 64 million. In 1998 In consolidated financial statements, the construction income of two joint ventures which the company has 50% and 25% of profit sharing have included gain from exchange rate arising from increasing of the exchange rate which was identified as the contracts of foreign currency income portion in the approximate amount of Baht 216.94 million. Revenue adjustment from changing in contract value and expected contract cost In 1999 Parent Company - There were adjustments for contract value and expected contract cost. Consequently, the company had to decrease net construction revenue in the approximate amount of Baht 93.81 million. The joint venture which the company has 59.99% of profit sharing - There were adjustments for contract value and expected contract cost. Consequently, the joint venture had to increase net construction revenue in the approximate amount of Baht 32.09 million. The joint venture which the company has 50% of profit sharing - There were adjustments for contract value and expected contract cost. Consequently, the joint venture had to increase net construction revenue in the approximate amount of Baht 47.5 million. The joint venture which the company has 35% of profit sharing - There were adjustments for contract value and expected contract cost. Consequently, the joint venture had to decrease net construction revenue in the approximate amount of Baht 346.73 million. 1998 Parent company The parent company had made the adjustment to reduce the construction income in approximate amount of Baht 283.5 million, according to the cost overrun arising from increasing in costs of construction material wages subcontractors together with construction plan of project delayed because of recovery of the ancient structure in the construction area. The project which the company has already estimated and realized the whole loss in 1997 because the estimation of total contract cost exceeded the total contract revenue, also incurred additional cost in the amount of Baht 332.9 million. Subsidiaries - CH. Karnchang Realestate Co.,Ltd. The partnership which is investment of subsidiary company had additional project value and revised project cost, causing the joint ventures adjusted by decreasing the net construction activity income in amount of Baht 9.73 million. Joint Ventures The joint ventures had changed Project Value and expected contract cost thus the net construction activity income had to be adjusted in amount of Baht 1,095.51 million. NOTE 24 - GAIN (LOSS) FROM CURRENCY EXCHANGE The company recorded gain (loss) from currency exchange for the year ended December 31, as follows: Consolidated CH. Karnchang Public Co., Ltd. (Amounts : Baht) 1999 1998 1999 1998 Gain (Loss) from currency exchange - Realized 7,982,440 68,125,468 6,677,217 (12,951,081) - Unrealized (65,055,126) 218,346,777 - - Total (57,072,686) 286,472,245 6,677,217 (12,951,081) As at December 31, the company, subsidiaries and joint ventures had net liabilities in foreign currencies equivalent to USD currency as follows: Amounts : US Dollar 1999 1998 CH. Karnchang Public Co., Ltd. 5,093,414 43,459,067 CH. Karnchang Public Co., Ltd. Subsidiary Companies and Joint Ventures 59,139,688 103,086,850 As December 31, the company , subsidiaries and joint ventures had made contracts to secure the risk from exchange rate equivalent to USD currency as follows: Amounts : US Dollar 1999 1998 CH. Karnchang Public Co., Ltd. 5,000,000 42,779,122 CH. Karnchang Public Co., Ltd. Subsidiary Companies and Joint Ventures 16,067,486 47,696,485 NOTE 25 - DIVIDEND, LEGAL RESERVE AND PROFIT SHARING In 1999 The parent company At the 1999 Ordinary Shareholders' meeting held on April 30, 1999, a resolution was passed approving an appropriation of additional legal reserve by 5% of net profit. At the Directors' meeting of 8/1999 held on September 14, 1999, resolutions were passed approving as follows : - The company to issue and offer for sale non-subordinated debentures with collateral and/or without collateral (more)