SET Announcements

Increase during period - 13,379 - - Decrease during period (36,922) - - - Balance - end of the period 203,918 168,368 - - TOTAL SHAREHOLDERS' EQUITY 570,067 5,257,253 366,149 4,971,443 The accompanying notes are an integral part of the financial statements. (UNAUDITED/BUT REVIEWED) CH. KARNCHANG PUBLIC COMPANY LIMITED, ITS SUBSIDIARIES AND ITS JOINT VENTURES STATEMENTS OF CASH FLOWS FOR THE PERIOD OF THREE MONTHS ENDED 31st MARCH (Thousand Baht) CONSOLIDATED THE COMPANY ONLY 2000 1999 2000 1999 (Restated) (Restated) Cash flows provided from (used in) operating activities Net earnings for the period 3,459 120,945 3,459 120,945 Adjustments to reconcile net earnings to net cash provided from (used in) operating activities Depreciation and amortization 170,068 184,118 33,758 33,426 Amortization prepaid expenses and interest expenses 75,521 121,650 - - Provision of doubtful debts 26,641 5,090 - - Provision of loss from construction (8,828) - - - Gain from disposal of equipment (4,565) (170) (182) (43) Reversal of loss from impairment of property, plant and equipment (210) - - - Amortization of construction in progress 2,719 - - - Provision for decline in value of supplies for construction 1,244 - - - Gain from unrealized exchange rate (3,090) (87,731) - - Provision for loss on decline in value of marketable securities 99 2,075 99 2,075 Share of loss (profit) of subsidiary, associated companies and joint ventures 32,685 16,371 32,372 (83,387) Minority interests in subsidiaries (4,687) 13,379 - - 291,056 375,727 69,506 73,016 Decrease (increase) in operating assets Trade accounts receivable (96,127) 372,831 63 93,905 Accounts receivable and loans to subsidiary, associated and related companies and joint ventures (10,521) (907) (86,159) (19,622) Construction contract in progress 2,321,271 (65,500) (26,199) (34,132) Invetories,supplies for construction 26,316 51,070 18,364 (2,459) Advance payments to subcontractors 3,203 (12,770) 10,559 (16,125) Withholding tax deducted at sources (30,037) 93,775 - - Other current assets 118,559 (51,614) 51,240 86,575 Other assets (71,678) (135,906) (7) (84,774) Increase (decrease) in operating liabilities Accounts and notes payable (71,869) (64,602) (1,940) 32,608 Accounts payable and loans from subsidiary, related companies and joint ventures (388,315) (116,050) 20,406 498 Advance received from contractor and deferred construction revenue 323,525 (56,513) 21,366 120,082 Other current liabilities 66,784 (84,282) (58,131) (54,794) Net cash provided from operating activities 2,482,167 305,259 19,068 194,778 The accompanying notes are an integral part of the financial statements. (UNAUDITED/BUT REVIEWED) CH. KARNCHANG PUBLIC COMPANY LIMITED, ITS SUBSIDIARIES AND ITS JOINT VENTURES STATEMENTS OF CASH FLOWS (Continued) FOR THE PERIOD OF THREE MONTHS ENDED 31st MARCH (Thousand Baht) CONSOLIDATED THE COMPANY ONLY 2000 1999 2000 1999 (Restated) (Restated) Cash flows provided from (used in) investing activities Decrease (increase) in deposits with maturity of more than 3 months or subject to restrictions 11,975 (6,500) (25) - Profit sharing from joint ventures - - 127,343 - Purchase of property, plant and equipment (12,799) (18,571) (2,317) (883) Disposal of property, plant and equipment 10,846 795 244 43 Increase in investments in related and other companies (63,062) - (63,062) - Purchases of investment in subsidiary companies - (15,848) - (15,848) Net cash provided from (used in) investing activities (53,040) (40,124) 62,183 (16,688) Cash flows provided from (used in) financing activities Increase (decrease) in bank overdrafts and loans from banks 258,109 (714) 177,213 42,273 Increase in long-term loans from related companies 338,738 - - - Increase (decrease) in long-term loans 143,031 (408,088) 260,000 (128,338) Cash received from issuance of secured debentures 500,000 - 500,000 - Increase (decrease) in liabilities under discounted notes receivable (2,897,164) 8,684 - - Net cash provided from (used in) financing activities (1,657,286) (400,118) 937,213 (86,065) Unrealized gain (loss) on exchange rate in cash and cash equivalents (5,176) 1,621 - - Net increase (decrease) in cash and cash equivalents 766,665 (133,362) 1,018,464 92,025 Cash and cash equivalents at beginning of the period 4,221,752 5,246,964 1,420,348 1,942,844 Cash and cash equivalents at end of the period (Note 14) 4,988,417 5,113,602 2,438,812 2,034,869 Supplement disclosures of cash flows information Cash paid during the period for :- Interest expenses 86,888 250,044 38,853 106,978 Corporate income tax 77,319 71,193 7,114 23,574 The accompanying notes are an integral part of the financial statements. (UNAUDITED/BUT REVIEWED) CH. KARNCHANG PUBLIC COMPANY LIMITED, ITS SUBSIDIARIES AND ITS JOINT VENTURES NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS NOTE 1 - GENERAL INFORMATION 1.1 Assumption underlying the preparation of the financial statements Although Thailand's economic crisis, which occurred in mid 1997, has eased to a certain extent in the current year, financial restructuring within the business community is still prevalent and subject to readjustment. Nevertheless, the accompanying financial statements have been prepared on the going concern basis, assuming that the realisation of assets and settlement of liabilities and obligations will occur in the ordinary course of business of the Company, its subsidiaries and its joint ventures, without any expectation of significant disruption to the ongoing activities of the Company. 1.2 Basis for preparation of interim financial statements These interim financial statements are prepared in accordance with Accounting Standards Pronouncement No. 41 "Interim Financial Reporting", with the Company choosing to present condensed consolidated interim financial statements. However, additional items are presented in the balance sheets, and the statements of earnings, retained earnings, changes in shareholders' equity and cash flows, as in the latest annual financial statements. (UNAUDITED/BUT REVIEWED) These interim financial statements are intended to provide information additional to that included in the latest annual financial statements. Accordingly, they focus on new activities, events, and circumstances so as not to duplicate information previously reported. These interim financial statements should therefore be read in conjunction with the latest annual financial statements. 1.3 Significant accounting policies The interim financial statements are prepared using the same accounting policies and methods of computation as were used for the financial statements for the year ended 31st December, 1999. NOTE 2 - CHANGE IN ACCOUNTING POLICIES a) On 20th January, 2000, the Institute of Certified Accountants and Auditors of Thailand has issued an announcement, Interpretation Statement No. 4, prohibiting pre-operating expenses from being recorded as assets, effective as from the financial statements covering period ended 31st December, 1999. As a result, the Company has written off deferred expenses previously recorded as part of project costs against the brought forward balance of the retained earnings, and retroactively adjusted the previous year's financial statements, presented herein for comparative purposes, as though the deferred expenses had never originally been capitalised as assets. The adjustment is regarded as a change in accounting policy, made to conform with the newly issued standard. The adjustment has the effect of increasing the net earnings by Baht 10 Million. The cumulative effect from the past up to the beginnings of the year 1999 has been presented under the heading of "Cumulative effect of the change in accounting policy for deferred expenses" in the retained earnings statements. (UNAUDITED/BUT REVIEWED) b) Commencing on 1st January, 1999, the Company had changed the accounting method for investment in an associated company from cost method to equity method by adjusting against the brought forward balance of retained earnings, and retroactively adjusting the previous year's financial statements, presented herein for comparative purposes, as though investments had accounted for by the equity method. The adjustment has the effect of decreasing the net earnings by Baht 16 Million. The cumulative effect from the past up to the beginnings of the year 1999 has been presented under the heading of "Cumulative effect of the change in accounting for investment". NOTE 3 - CASH AT BANKS/SHORT-TERM INVESTMENTS The outstanding balances of cash at banks and short-term investments as at 31st March, 2000 and 31st December, 1999 included deposit of Baht 24.6 million and Baht 36.6 million respectively (The Company only : Baht 2.1 million and Baht 2.0 million respectively) which has been pledged with banks to secure the issuance of bank guarantee for electricity usage, bidding, other bank guarantees and forward contracts with commercial banks. (UNAUDITED/BUT REVIEWED) NOTE 4 - TRADE ACCOUNTS RECEIVABLE As at 31st March, 2000 and 31st December, 1999, the outstanding balances of trade accounts receivable classified by aging are as follows :- CONSOLIDATED Related parties Other receivables Total 31st March 31st December 31st March 31st December 31st March 31st December 2000 1999 2000 1999 2000 1999 Thousand Thousand Thousand Thousand Thousand Thousand Baht Baht Baht Baht Baht Baht Construction contract receivables Less than 3 months 9,238 24,864 706,647 618,019 715,885 642,883 More than 3 - 6 months 10,126 18,499 12,563 - 22,689 18,499 More than 6 - 12 months 105,721 149,994 - - 105,721 149,994 More than 12 months 265,021 307,713 105,464 573 370,485 308,286 390,106 501,070 824,674 618,592 1,214,780 1,119,662 Less : Provision for doubtful debts (202,248) (202,248) (103,634) (103,634) (305,882) (305,882) 187,858 298,822 721,040 514,958 908,898 813,780 Retention as per contracts 3,127 4,222 74,538 127,049 77,665 131,271 Total 190,985 303,044 795,578 642,007 986,563 945,051 (UNAUDITED/BUT REVIEWED) THE COMPANY ONLY Related parties Other receivables Total 31st March 31st December 31st March 31st December 31st March 31st December 2000 1999 2000 1999 2000 1999 Thousand Thousand Thousand Thousand Thousand Thousand Baht Baht Baht Baht Baht Baht Construction contract receivables Less than 3 months 13,922 45,130 162,695 163,220 176,617 208,350 More than 3 - 6 months 24,798 46,236 - - 24,798 46,236 More than 6 - 12 months 264,115 374,771 - - 264,115 374,771 More than 12 months 491,108 334,218 - 573 491,108 334,791 793,943 800,355 162,695 163,793 956,638 964,148 Less : Provision for doubtful debts (334,217) (334,217) - - (334,217) (334,217) 459,726 466,138 162,695 163,793 622,421 629,931 Retention as per contracts 4,170 5,628 31,481 22,576 35,651 28,204 Total 463,896 471,766 194,176 186,369 658,072 658,135 As at 31st March, 2000, provision for doubtful debts of Baht 334.2 million was set up for accounts receivable which are overdue over 1 year, from a joint venture which has liquidity problem and another joint venture which has uncertainty in repayment. (UNAUDITED/BUT REVIEWED) NOTE 5 - ACCOUNTS RECEIVABLE AND LOANS TO SUBSIDIARY, ASSOCIATED AND RELATED COMPANIES AND JOINT VENTURES The outstanding balances of accounts receivable and loans to subsidiary, associated and related companies and joint ventures as at 31st March, 2000 are as follows :- Consolidated The Company Only Pricing policy Thousand Thousand Baht Baht Receivables from sales of construction materials and others Subsidiaries - Construction Material Supply Company Limited - 13,737 Closed to market price - Bangkok Concrete Industries Company Limited - 16,768 Closed to market price - Other subsidiaries - 1,114 Closed to market price - 31,619 Related companies - Siam Wire Industry Company Limited 8,653 8,637 Closed to market price - Sermmit Executive company Limited 5,428 4,829 Closed to market price - BC Post - Tensioning Company Limited 8,555 5,329 Closed to market price - Silasaicrete Limited Partnership 1,734 1,733 Closed to market price - Expert Transport Company Limited 2,867 - Closed to market price - Other related parties 3,778 1,450 Closed to market price 31,015 21,978 Joint ventures - Joint Venture CH. Karnchang Public Company Limited Bilfinger + Berger Bauaktiengesellschaft, Tokyu Construction Co., Ltd. and CH. Karnchang - Tokyu Construction Co., Ltd. 7,975 13,630 Closed to market price - Joint Venture BBCD (Bilfinger + Berger Bauaktiengesellschaft, CH. Karnchang Public Company Limited and Dyckerhoff & Widmann AG) 267,811 383,337 Closed to market price (UNAUDITED/BUT REVIEWED) Consolidated The Company Only Pricing policy Thousand Thousand Baht Baht - Joint Venture BCKT (Bilfinger + Berger Bauaktiengesellschaft, CH. Karnchang Public Company Limited, Kumagai Gumi Co., Ltd. and Tokyu Construction Co., Ltd.) 35,575 47,085 Closed to market price - The TWCK (Thames Water International (Thailand) Ltd. and CH. Karnchang Public Company Limited) Joint Venture 6,420 12,839 Closed to market price - Joint Ventures CKSL (CH. Karnchang Public Company Limited and SNC - Lavalin Inc.) 15,792 7,849 Closed to market price - Other joint ventures 31 - Closed to market price 333,604 464,740 Other participants in joint ventures - Kumagai Gumi Co., Ltd. 25,079 - Closed to market price 25,079 - Total receivables from sales of construction materials and others 389,698 518,337 Less : Provision for doubtful debt (268,236) (384,701) Net receivables from sales of raw materials and others 121,462 133,636 Advance payments Joint Ventures - Joint Ventures CKSL (CH. Karnchang Public Company Limited and SNC - Lavalin Inc.) 3,110 6,221 - - Other joint ventures 44 - - 3,154 6,221 Total advance payments 3,154 6,221 (UNAUDITED/BUT REVIEWED) Consolidated The Company Only Pricing policy Thousand Thousand Baht Baht Loans and interest receivables Subsidiaries - Bangkok Metro Company Limited - 157,958 Market interest rate - 157,958 Joint Ventures - Joint Venture Phuket Consortium consists of CH. Karnchang Public Company Limited Thames Water International (Thailand) Limited Index International Group Co., Ltd. and Trio Consultant Co., Ltd. 613 8,757 Market interest rate - Joint Venture BCKT (Bilfinger + Berger Bauaktiengesellschaft, CH. Karnchang Public Company Limited, Kumagai Gumi Co., Ltd., and Tokyu Construction Co., Ltd.) 42,149 56,199 Market interest rate - Joint Ventures CKSL (CH. Karnchang Public Company Limited and SNC - Lavalin Inc.) 252 503 Market interest rate 43,014 65,459 Associated company - Pathum Thani Water Company Limited 415,278 415,278 Market interest rate 415,278 415,278 Total loans and interest receivable 458,292 638,695 582,908 778,552 (UNAUDITED/BUT REVIEWED) As at 31st March, 2000, the Company had the interest receivable from loans to subsidiaries, related companies, and joint ventures in the amount of Baht 65.0 million (31st December, 1999 : Baht 52.5 million). Loans : a) Bangkok Metro Company Limited The Company had loan to Bangkok Metro Company Limited results from the payment of a project advance made to the employer of that company on a project. The outstanding balance as at 31st March, 2000 totals Baht 144.6 million and interest receivable of Baht 13.3 million (31st December, 1999 : Baht 129.5 million and Baht 10.3 million respectively), under a loan credit facility of not more than Baht 150 million, repayable within 5 years from 1st July, 1998, the date of contract. b) Joint Venture BCKT (Bilfinger and Berger Bauaktiengesellschaft, CH. Karnchang Public Company Limited, Kumagai Gumi Co., Ltd. and Tokyu Construction Co., Ltd.) The balance of the Company's loan to the joint venture is approximatly Baht 45.5 (more)