SET Announcements

months or less and without cash subject to restrictions. As at 31st March, 2000 and 1999, cash and cash equivalents as reflected in the statements of cash flows consist of the following :- Consolidated The Company Only 31st March 31st March 2000 1999 2000 1999 Thousand Thousand Thousand Thousand Baht Baht Baht Baht Cash in hand and at banks 4,915,463 4,946,583 2,440,642 2,034,307 Short-term investments 97,559 198,519 236 582 Total 5,013,022 5,145,102 2,440,878 2,034,889 Less : Deposits with maturity of more than 3 months or subject to restrictions (24,605) (31,500) (2,066) (20) Cash and cash equivalents 4,988,417 5,113,602 2,438,812 2,034,869 (UNAUDITED/BUT REVIEWED) NOTE 15 - BANK GUARANTEES As at 31st March, 2000 and 31st December, 1999, there were outstanding bank guarantees of approximately Baht 12,139.5 million and Baht 12,625.0 million respectively (The Company Only : Baht 2,803.2 million and Baht 2,969.1 million respectively) issued by banks on behalf of the Company, its subsidiary companies and its joint ventures in respect of certain performance bonds as required in the normal course of business of the Company, its subsidiary companies and its joint ventures. The details of bank guarantees are as follows :- Consolidated The Company Only 31st March 31st December 31st March 31st December 2000 1999 2000 1999 Million Million Million Million Baht Baht Baht Baht Guarantee of construction contract, bid, and debt repayment 6,711.2 6,210.5 2,081.6 1,582.3 Advance payment bond and retention 4,985.9 5,302.6 370.1 389.7 Guarantee of revenue loss due to damage caused by transportation, retention bond, rental equipment, electricity and letter of credit 442.4 1,111.9 351.5 997.1 (UNAUDITED/BUT REVIEWED) NOTE 16 - GUARANTEES/COLLATERAL As at 31st March, 2000, the Company and subsidiary companies had guaranteed or secured the following credit facilities of other entities. Those provided on behalf of joint ventures are provided in proportion to the Company's holding : 16.1 For the Joint Venture of CH. Karnchang Public Company Limited, Bilfinger + Berger Bauaktiengesellschaft, Tokyu Construction Co., Ltd. and CH. Karnchang - Tokyu Construction Co., Ltd. the Company provided guarantees for bank loan and guarantee facilities of Baht 2,250 million and Baht 5,120 million, respectively. The Company has also pledged part of its investment in Bangkok Expressway Public Company Limited to secure a performance guarantee from a bank. 16.2 For the Joint Venture BBCD (Bilfinger + Berger Bauaktiengesellschaft, CH. Karnchang Public Company Limited and Dyckerhoff & Widmann AG) the Company has issued guarantee for credit facilities provided by banks and financial institutions totalling Baht 2,421.9 million. 16.3 For the Joint Venture BCKT (Bilfinger + Berger Bauaktiengesellschaft, CH. Karnchang Public Company Limited, Kumagai Gumi Co., Ltd. and Tokyu Construction Co., Ltd.) the Company has provided a guarantee for a Baht 500 million bank loan of which repayment is due in 2001, a Baht 125 million letter of credit facility, and a foreign exchange hedging facility of Yen 1,130 million. 16.4 The Company has pledged part of its investment in Pathum Thani Water Company Limited with two banks to secure the loans of Pathum Thani Water Company Limited from those banks. The outstanding balance of these as at 31st March, 2000 is approximately Baht 3,800 million. (UNAUDITED/BUT REVIEWED) NOTE 17 - COMMITMENTS AND CONTINGENT LIABILITIES As at 31st March, 2000, commitments and contingent liabilities are as follows : 17.1 The Company, its subsidiary companies and its joint ventures has commitments totalling Baht 1,379.6 million in respect of project construction costs. (the Company only : Baht 154.3 million). 17.2 The Company, its subsidiary companies and its joint ventures have commitments totalling approximately Baht 3,540.2 million from guarantees of loans, letters of credit, letters of guarantee issued by banks, and notes discounted to joint venture in which the Company is one of the participants (31st December, 1999 : Baht 2,787 million). 17.3 The joint ventures have commitments from opening letters of credit with banks which have not been used. In 2000 and 1999 these total approximately Baht 1,001.4 million and Baht 768.31 million, respectively. 17.4 Joint Venture BBCD (Bilfinger + Berger Bauaktiengesellschaft, CH. Karnchang Public Company Limited and Dyckerhoff & Widmann AG) has entered into forward contracts for USD 10.76 million, which may give rise to exchange gains or losses in the future. These contracts will mature in 2000. 17.5 Joint Venture BCKT (Bilfinger + Berger Bauaktiengesellschaft, CH. Karnchang Public Company Limited, Kumagai Gumi Company limited and Tokyu Construction Company Limited) has entered into 24 forward exchange contracts with 3 commercial banks, for a combined amount of Yen 2,800 million. These contracts are secured by the pledge of fixed deposits of Baht 90 million, and are guaranteed by the participants. They will mature in 2000. (UNAUDITED/BUT REVIEWED) 17.6 Joint Venture CH. Karnchang Public Company Limited, Bilfinger + Berger Bauaktiengesellschaft, Tokyu Construction Company Limited and CH. Karnchang - Tokyu Construction Company Limited has a contingent liability as a result of being sued for damages and compensation totalling approximately Baht 4.6 million for termination of employment. The case is currently before the courts. 17.7 Joint Venture BBCD (Bilfinger + Berger Bauaktiengesellschaft, CH. Karnchang Public Company Limited and Dyckerhoff & Widmann AG) has delayed repayments due on a loan from a commercial bank which could affect the business of the joint venture as the lender has the right to call for immediate repayment of principal under the agreement. As at 31st March, 2000, the outstanding balance of principal was Baht 688 million. 17.8 Joint Venture BCKT (Bilfinger + Berger Bauaktiengesellschaft, CH. Karnchang Public Company Limited, Kumagai Gumi Company limited and Tokyu Construction Company Limited) has been sued for damages of Baht 197.4 million in termination by a former employee. The Joint Venture has already paid compensation in accordnace with the law. The case is in process legal, and the joint venture's counsel's opinion is that there is no precedent case in which a court has found that an employer must pay a compensation award of this size, and it is expected that the Joint Venture will eventually win the case. (UNAUDITED/BUT REVIEWED) NOTE 18 - CONTRACTS 18.1 Joint Venture BCKT (Bilfinger + Berger Bauaktiengesellschaft, CH. Karnchang Public Company Limited, Kumagai Gumi Co., Ltd. and Tokyu Construction Co., Ltd.) a) In 1999, the joint venture had changed its method of operation for the tunnel boring from Rama IX station to Sirikit station from an arrangement where the joint venture was itself the constructor, to one where the work was subcontracted to Kumagai Gumi Co., Ltd.. This was in accordance with a resolution of the meeting of the joint venture's Board of Directors on 4th March, 1999 under which participants can be hired to conduct construction work by the joint venture, in accordance with the existing budget for that work. The subcontract pricing conditions are payment of sums of Baht 660.8 million and Yen 1,811.2 million (excluding value added tax) in accordance with schedule indicated in the agreement. b) Commitments of approximately Baht 16.08 million under vehicle rental agreements. c) Under a agreement to rent land on which to build a factory building for use in producing construction supplies, and for siting temporary offices, the joint venture is committed to payment of approximately Baht 8.43 million. (UNAUDITED/BUT REVIEWED) 18.2 Joint venture BBCD (Bilfinger + Berger Bauaktiengesellschaft, CH. Karnchang Public Company Limited and Dyckerhoff + Widmann AG) The joint venture has entered into two agreements to lease land for periods of 3 years and 4 years. The rental charged are Baht 13,500 per month per rai, and Baht 618,000 per year, respectively. NOTE 19 - SUBSEQUENT EVENT During April to May, 2000, the Company offered Baht 300 million of unsecured debentures by private placement. These debentures are name registered, unsubordinated debentureholders' representative. Maturing in one year, the debentures pay interest every three months at 7.5 percent per annum. The specified date of issue is 1st June, 2000. NOTE 20 - FINANCIAL INFORMATION BY SEGMENT The Company, its subsidiaries and joint ventures' operations involve principally a single industry segment in construction service and are carried on in the single geographic area in Thailand. As a result, all of the revenues, operating profits (loss) and assets as reflected in these financial statements pertain to the aforementioned industry segment and geographic area. NOTE 21 - RECLASSIFICATION Certain amounts in the balance sheet as at 31st December, 1999 and statement of earnings for the period of three months ended 31st March, 1999 have been reclassified to conform to current period classification, with no effect on previously reported net earnings or shareholders' equity. (UNAUDITED/BUT REVIEWED) NOTE 22 - APPROVAL OF FINANCIAL STATEMENTS These financial statements have been approved by the Company's directors.