SET Announcements

BALANCE - beginning of period, as previously reported (deficit) (2,238,447) 818,019 (2,232,947) 823,519 CUMULATIVE EFFECT OF THE CHANGE IN ACCOUNTING POLICY FOR DEFERRED EXPENSES 2 - (63,397) - (63,397) CUMULATIVE EFFECT OF THE CHANGE IN METHOD OF ACCOUNTING FOR INVESTMENT 2 - (98,428) - (98,428) BALANCE - beginning of period, as restated (deficit) (2,238,447) 656,194 (2,232,947) 661,694 NET EARNINGS FOR THE PERIOD 19,804 77,023 19,804 77,023 TOTAL RETAINED EARNINGS - unappropriated (deficit) (2,218,643) 733,217 (2,213,143) 738,717 RETAINED EARNINGS - APPROPRIATED STATUTORY RESERVE 88,442 88,442 82,942 82,942 TOTAL RETAINED EARNINGS - appropriated 88,442 88,442 82,942 82,942 TOTAL RETAINED EARNINGS (DEFICIT) (2,130,201) 821,659 (2,130,201) 821,659 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 CHANGES IN SHAREHOLDERS' EQUITY FOR THE SIX-MONTH PERIODS ENDED 30th JUNE (Thousand Baht) CONSOLIDATED THE COMPANY ONLY Note 2000 1999 2000 1999 (Restated) (Restated) SHARE CAPITAL ORDINARY SHARE Balance - beginning of period 1,050,000 1,050,000 1,050,000 1,050,000 Balance - end of period 1,050,000 1,050,000 1,050,000 1,050,000 PREMIUM ON SHARE CAPITAL Balance - beginning of period 2,436,000 2,436,000 2,436,000 2,436,000 Balance - end of period 2,436,000 2,436,000 2,436,000 2,436,000 RETAINED EARNINGS APPROPRIATED - statutory reserve Balance - beginning of period 88,442 88,442 82,942 82,942 Balance - end of period 88,442 88,442 82,942 82,942 UNAPPROPRIATED (DEFICIT) Balance - beginning of period, as previously reported (deficit) (2,238,447) 818,019 (2,232,947) 823,519 Cumulative effect of the change in accounting policy for deferred expenses 2 - (63,397) - (63,397) Cumulative effect of the change in method of accounting for investment 2 - (98,428) - (98,428) Balance - beginning of the period, as restated (deficit) (2,238,447) 656,194 (2,232,947) 661,694 Increase during period 19,804 77,023 19,804 77,023 Balance - end of period (deficit) (2,218,643) 733,217 (2,213,143) 738,717 UNREALIZED GAIN (LOSS) ON CHANGE IN INVESTMENT VALUE Balance - beginning of period (182,648) - (182,648) - Increase during period - 403,922 - 403,922 Decrease during period (896,078) - (896,078) - Balance - end of period (1,078,726) 403,922 (1,078,726) 403,922 TOTAL EQUITY ATTRIBUTABLE TO COMPANY'S SHAREHOLDERS 277,073 4,711,581 277,073 4,711,581 MINORITY INTEREST - EQUITY ATTRIBUTABLE TO MINORITY SHAREHOLDERS OF SUBSIDIARIES Balance - beginning of period 240,840 154,989 - - Increase during period - 44,834 - - Decrease during period (47,715) - - - Balance - end of period 193,125 199,823 - - TOTAL SHAREHOLDERS' EQUITY 470,198 4,911,404 277,073 4,711,581 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 SIX-MONTH PERIODS ENDED 30th JUNE (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 19,804 77,023 19,804 77,023 Adjustments to reconcile net earnings to net cash provided from (used in) operating activities :- Depreciation 321,264 363,938 66,563 65,544 Amortization of prepaid expenses and interest expenses 77,540 241,252 - - Provision for doubtful debts (Reversal) (445) 5,090 - - Reversal of provision for loss from construction (24,027) - - - Loss (gain) from disposal of equipment (27,397) 12,258 (1,690) (7,677) Reversal of loss from impairment of property, plant and equipment (516) - - - Amortization of cost of construction in progress 2,718 - - - Provision for decline in value of supplies for construction 1,172 - - - Unrealized gain on exchange (2,074) (93,585) - - Gain from sales of investment in marketable securities - (654) - (654) Provision for loss (gain) on decline in value of investment in marketable securities 162 (204) 162 (204) Share of loss (profit) of subsidiaries, associated companies and joint ventures 47,160 12,336 3,471 (577) Minority interests in subsidiaries (11,182) 3,805 - - 404,179 621,259 88,310 133,455 Decrease (increase) in operating assets Trade accounts receivable (7,390) 621,288 19,704 140,907 Accounts receivable and loans to subsidiary, associated and related companies and joint ventures (15,578) (42,157) (54,704) (87,499) Construction contract in progress 2,355,355 (280,831) (38,150) 298,155 Inventories, supplies for construction 30,138 309,060 17,237 17,053 Advance payments to subcontractors (420,055) 50,814 14,258 (6,079) Other current assets 21,828 78,977 (3,820) 81,028 Other assets (92,437) (149,147) (12,965) (84,167) Increase (decrease) in operating liabilities Accounts and notes payable 264,562 (481,426) (127,099) (101,227) Accounts payable and loans from subsidiary and related companies and joint ventures (88,914) 59,645 30,263 7,425 Advance received from contractor and deferred construction revenue 549,732 (171,479) 687 (30,301) Other current liabilities 53,874 (81,243) (27,448) (22,686) Net cash provided from (used in) operating activities 3,055,294 534,760 (93,727) 346,064 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 SIX-MONTH PERIODS ENDED 30th JUNE (Thousand Baht) CONSOLIDATED THE COMPANY ONLY 2000 1999 2000 1999 (Restated) (Restated) Cash flows provided from (used in) investing activities Increase in deposits with maturity of more than 3 months or subject to restrictions (78,843) (6,520) (19,077) - Decrease in notes receivable-financial institution - 42,117 - - Profit sharing from joint ventures - - 189,343 87,984 Proceed from sales of investments in marketable securities - 4,354 - 4,354 Purchase of property, plant and equipment (29,667) (134,855) (6,523) (2,773) Proceeds from disposal of property, plant and equipment 41,519 68,956 1,767 15,046 Increase in investments in related and other companies (63,062) - (63,062) - Purchases of investment in subsidiary and associated companies - (15,848) - (30,848) Net cash provided from (used in) investing activities (130,053) (41,796) 102,448 73,763 Cash flows provided from (used in) financing activities Increase (decrease) in bank overdrafts and loans from banks 474,144 (46,613) 290,182 54,719 Decrease in notes payable - financial institutions (89,421) - (100,000) - Cash received from issuance of unsecured debentures 400,000 - 400,000 - Decrease in long-term loans from related companies (36,757) - - - Increase (decrease) in long-term loans 93,067 (681,985) 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) 400,516 - - Net cash provided from (used in) financing activities (1,556,131) (328,082) 1,350,182 (73,619) Unrealized loss on exchange in cash and cash equivalents 2,972 (1,691) - - Net increase in cash and cash equivalents 1,372,082 163,191 1,358,903 346,208 Cash and cash equivalents at beginning of period 4,221,732 5,246,964 1,420,348 1,942,844 Cash and cash equivalents at end of period (Note 16) 5,593,814 5,410,155 2,779,251 2,289,052 Supplement disclosures of cash flows information Cash paid during the period for :- Interest expenses 166,504 417,761 85,029 146,125 Corporate income tax 97,349 142,816 17,379 42,035 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 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. 1.2 Basis for preparation of interim financial statements These interim financial statements are prepared in accordance with Accounting Standards Pronouncement No. 41 on "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. 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. (UNAUDITED/BUT REVIEWED) 1.3 Basis of consolidation These consolidated financial statements have been prepared on the same basis as that applied for the consolidated financial statements for the year ended 31st December, 1999. There has been no changes in the composition of the Group during the periods except for percentage of profit sharing in Joint Ventures CKSL (CH. Karnchang Public Company Limited and SNC - Lavalin Inc.) which increase from 50 to 99.9 during the current quarter. 1.4 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 decreasing the net loss for the three-month period and increasing the net earnings for the six-month period ended 30th June, 1999 by Baht 24 million and Baht 34 million respectively. The cumulative effect 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 changed its method of accounting for its investment in an associated company from the cost method to the equity method by adjusting the brought forward balance of retained earnings, and retroactively adjusting the previous year's financial statements, presented herein for comparative purposes, as though the investment had always been accounted for by the equity method. The adjustment has the effect of decreasing the net loss for the three-month period and the net earnings for the six-month period ended 30th June, 1999 by Baht 4 million and Baht 12 million respectively. The cumulative effect from the past up to the beginning of the year 1999 has been presented under the heading of "Cumulative effect of the change in method of accounting for investment" in the retained earnings statements. NOTE 3 - CASH AT BANKS/SHORT-TERM INVESTMENTS The outstanding balances of cash at banks and short-term investments include, as at 30th June, 2000 and 31st December, 1999, respectively, deposits of Baht 115.4 million and Baht 36.6 million (the Company only : Baht 21.1 million and Baht 2.0 million respectively) which have been pledged with banks to secure the issuance of bank guarantees for electricity usage, bidding, other bank guarantees, the issuance of secure debentures and forward contracts with banks. (UNAUDITED/BUT REVIEWED) NOTE 4 - TRADE ACCOUNTS RECEIVABLE As at 30th June, 2000 and 31st December, 1999, the outstanding balances of trade accounts receivable classified by aging are as follows :- CONSOLIDATED Related parties Other receivables Total 30th June 31st December 30th June 31st December 30th June 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 6,272 24,864 726,873 618,019 733,145 642,883 3 - 6 months 852 18,499 57,387 - 58,239 18,499 6 - 12 months 23,141 149,994 - - 23,141 149,994 More than 12 months 319,952 307,713 101,804 573 421,756 308,286 350,217 501,070 886,064 618,592 1,236,281 1,119,662 Less : Provision for doubtful debts (202,248) (202,248) (101,805) (103,634) (304,053) (305,882) 147,969 298,822 784,259 514,958 932,228 813,780 Retention as per contracts 3,370 4,222 53,757 127,049 57,127 131,271 Total 151,339 303,044 838,016 642,007 989,355 945,051 THE COMPANY ONLY Related parties Other receivables Total 30th June 31st December 30th June 31st December 30th June 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 8,363 45,130 180,728 163,220 189,091 208,350 3 - 6 months 2,130 46,236 42,253 - 44,383 46,236 6 - 12 months 57,327 374,771 - - 57,327 374,771 More than 12 months 641,314 334,218 - 573 641,314 334,791 709,134 800,355 222,981 163,793 932,115 964,148 Less : Provision for doubtful debts (334,217) (334,217) - - (334,217) (334,217) 374,917 466,138 222,981 163,793 597,898 629,931 Retention as per contracts 4,493 5,628 36,040 22,576 40,533 28,204 Total 379,410 471,766 259,021 186,369 638,431 658,135 (UNAUDITED/BUT REVIEWED) As at 30th June, 2000, provision for doubtful debts of Baht 334.2 million was set up for accounts receivable which had been overdue for more than 12 months from a joint venture which has liquidity problems, and another joint venture for which there is uncertainty as to repayment. NOTE 5 - ACCOUNTS RECEIVABLE AND LOANS TO SUBSIDIARY, ASSOCIATED AND RELATED COMPANIES AND JOINT VENTURES Consolidated The Company Only Pricing policy 30th June, 31st December, 30th June, 31st December, 2000 1999 2000 1999 Thousand Thousand Thousand Thousand Baht Baht Baht Baht Receivables from sales of construction materials and others Subsidiaries - Construction Material Supply Company Limited - - 21,556 30,921 Close to market price - Bangkok Concrete Industries Company Limited - - 19,121 297 Close to market price - Other subsidiaries - - 1,463 1,058 Close to market price - - 42,140 32,276 Related companies - Siam Wire Industry Company Limited 10,312 8,644 8,894 8,644 Close to market price - Sermmit Executive Company Limited 1,589 8,014 1,048 7,984 Close to market price (more)