SET Announcements

BALANCE - beginning of period, as restated (deficit) (2,238,447) 656,194 (2,232,947) 661,694 NET LOSS FOR THE PERIOD (365,624) (1,028,132) (365,624) (1,028,132) TOTAL RETAINED EARNINGS - unappropriated (deficit) (2,604,071) (371,938) (2,598,571) (366,438) 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) (2,515,629) (283,496) (2,515,629) (283,496) 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 NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2000 AND 1999 (Unit : 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 (Deficit) 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 period, as restated (deficit) (2,238,447) 656,194 (2,232,947) 661,694 Decrease during period (365,624) (1,028,132) (365,624) (1,028,132) Balance - end of period (deficit) (2,604,071) (371,938) (2,598,571) (366,438) UNREALIZED LOSS ON CHANGES IN VALUE OF INVESTMENTS Balance - beginning of period (182,648) - (182,648) - Decrease during period (1,286,135) (208,151) (1,286,135) (208,151) Balance - end of period (1,468,783) (208,151) (1,468,783) (208,151) TOTAL EQUITY ATTRIBUTABLE TO COMPANY'S SHAREHOLDERS (Capital deficit) (498,412) 2,994,353 (498,412) 2,994,353 MINORITY INTEREST - EQUITY ATTRIBUTABLE TO MINORITY SHAREHOLDERS OF SUBSIDIARIES Balance - beginning of period 240,840 154,989 - - Increase during period 32,025 19,179 - - Balance - end of period 272,865 174,168 - - TOTAL SHAREHOLDERS' EQUITY (Capital deficit) (225,547) 3,168,521 (498,412) 2,994,353 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 NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2000 AND 1999 (Unit : Thousand Baht) Consolidated The Company Only 2000 1999 2000 1999 (Restated) (Restated) Cash flows provided from (used in) operating activities Net loss for the period (365,624) (1,028,132) (365,624) (1,028,132) Adjustments to reconcile net loss to net cash provided from (used in) operating activities :- Depreciation 463,476 546,324 97,623 96,551 Amortization of prepaid expenses and interest expenses 78,965 354,530 - - Provision for doubtful debts (Reversal) (523) 5,090 - - Reversal of provision for loss from construction (26,762) - - - Loss (gain) from disposal of equipment (119,726) 11,505 (4,039) (7,693) Reversal of loss from impairment of property, plant and equipment (1,825) - - - Amortization of cost of construction in progress 8,015 - 5,297 - Provision for declining in value of supplies for construction 1,172 - - - Unrealized loss on exchange 80,650 180,976 - 6,419 Gain from sales of investment in marketable securities - (654) - (654) Provision for loss (gain) on declining in value of investment in marketable securities 128 (17) 128 (17) Share of loss of subsidiaries, associated company and joint ventures 110,930 55,508 405,830 1,106,990 Withholding tax deducted at source written off 22,792 - 21,103 - Gain (loss) of minority interests in subsidiaries (7,790) 17,437 - - 243,878 142,567 160,318 173,464 Decrease (increase) in operating assets Trade accounts receivable 391,518 902,216 43,647 239,962 Accounts receivable and loans to subsidiary, associated and related companies and joint ventures (12,654) 11,822 101,438 (47,480) Construction contract in progress 2,320,668 (139,149) (77,528) 343,587 Inventories and supplies for construction 34,648 341,055 13,440 12,804 Advance payments to subcontractors (404,656) 97,016 15,396 7,227 Other current assets 8,182 50,145 5,752 57,543 Other assets (163,519) (224,653) (54,722) (84,141) Increase (decrease) in operating liabilities Accounts and notes payable (368,620) (627,185) (209,398) (144,761) Accounts payable and loans from subsidiary and related companies and joint ventures (150,425) (115,387) 545,012 (33,527) Advance received from contractor and deferred construction revenue 923,426 (235,523) (7,951) 48,513 Other current liabilities 16,793 (137,166) (13,378) (79,570) Net cash provided from operating activities 2,839,239 65,758 522,026 493,621 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 NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2000 AND 1999 (Unit : 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 (206,149) (14,020) (146,372) - Decrease in notes receivable-financial institution - 42,117 - - Dividend received - - - 16,500 Profit sharing from joint ventures - - 259,343 127,984 Proceed from sales of investments in marketable securities - 4,354 - 4,354 Purchase of property, plant and equipment (43,648) (135,860) (8,952) (5,603) Proceeds from disposal of property, plant and equipment 192,246 82,202 21,409 15,073 Increase in investments in related and other companies (63,062) - (63,062) - Increase in investment in subsidiary and associated companies - (15,848) (400,000) (30,848) Net cash provided from (used in) investing activities (120,613) (37,055) (337,634) 127,460 Cash flows provided from (used in) financing activities Increase (decrease) in bank overdrafts and loans from banks 425,229 (37,512) 181,744 53,086 Increase (decrease) in notes payable - financial institutions (88,526) 100,000 (100,000) - Cash received from issuance of unsecured debentures 400,000 - 400,000 - Decrease in long-term loans from related companies (127,159) - - - Increase (decrease) in long-term loans 407,517 (1,731,980) 210,000 (898,363) Cash received from issuance of secured debentures 500,000 - 500,000 - Increase (decrease) in liabilities under discounted notes receivable (2,897,164) 924,084 - - Net cash provided from (used in) financing activities (1,380,103) (745,408) 1,191,744 (845,277) Unrealized loss on exchange in cash and cash equivalents 2,506 28,938 - - Net increase (decrease) in cash and cash equivalents 1,341,029 (687,767) 1,376,136 (224,196) 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) 5,562,761 4,559,197 2,796,484 1,718,648 Supplement disclosures of cash flows information Cash paid during the period for :- Interest expenses 269,276 569,618 146,751 234,219 Corporate income tax 138,367 198,352 24,738 62,435 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 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 31 December 1999. There have been no changes in the composition of the Group during the periods except for percentage of profit sharing in Joint Venture CKSL (CH. Karnchang Public Company Limited and SNC - Lavalin Inc.) which increased from 50 to 99.9 during the second quarter of the current year, and the Company's investment in Joint Venture CKAE consortium during the current quarter, from which it shares profits at the rate of 98 percent. 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 31 December 1999. 2. CHANGE IN ACCOUNTING POLICIES a) On 20 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 31 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 and nine-month periods ended 30 September 1999 by Baht 9.6 million and Baht 43.9 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 accounting policy for deferred expenses" in the retained earnings statements. (UNAUDITED BUT REVIEWED) b) Commencing on 1 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 increasing the net loss for the three-month and nine-month periods ended 30 September 1999 by Baht 43.2 million and Baht 55.5 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. 3. CASH AT BANKS/SHORT-TERM INVESTMENTS The outstanding balances of cash at banks and short-term investments include, as at 30 September 2000 and 31 December 1999, respectively, deposits of Baht 242.7 million and Baht 36.6 million (the Company only : Baht 148.7 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. 4. TRADE ACCOUNTS RECEIVABLE As at 30 September 2000 and 31 December 1999, the outstanding balances of trade accounts receivable classified by aging are as follows :- (Unit : Thousand Baht) CONSOLIDATED Related parties Other receivables Total 30 September 31 December 30 September 31 December 30 September 31 December 2000 1999 2000 1999 2000 1999 Construction contract receivables Less than 3 months 5,005 24,864 309,930 618,019 314,935 642,883 3 - 6 months - 18,499 46,908 - 46,908 18,499 6 - 12 months 7,749 149,994 5,442 - 13,191 149,994 More than 12 months 336,196 307,713 101,804 573 438,000 308,286 348,950 501,070 464,084 618,592 813,034 1,119,662 Less : Provision for doubtful debts (202,248) (202,248) (101,804) (103,634) (304,052) (305,882) 146,702 298,822 362,280 514,958 508,982 813,780 Retention as per contracts 484 4,222 65,031 127,049 65,515 131,271 Total 147,186 303,044 427,311 642,007 574,497 945,051 (UNAUDITED BUT REVIEWED) (Unit : Thousand Baht) THE COMPANY ONLY Related parties Other receivables Total 30 September 31 December 30 September 31 December 30 September 31 December 2000 1999 2000 1999 2000 1999 Construction contract receivables Less than 3 months 6,673 45,130 170,683 163,220 177,356 208,350 3 - 6 months - 46,236 31,997 - 31,997 46,236 6 - 12 months 18,857 374,771 - - 18,857 374,771 More than 12 months 681,914 334,218 - 573 681,914 334,791 707,444 800,355 202,680 163,793 910,124 964,148 Less : Provision for doubtful debts (334,217) (334,217) - - (334,217) (334,217) 373,227 466,138 202,680 163,793 575,907 629,931 Retention as per contracts 645 5,628 37,936 22,576 38,581 28,204 Total 373,872 471,766 240,616 186,369 614,488 658,135 As at 30 September 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. 5. ACCOUNTS RECEIVABLE AND LOANS TO SUBSIDIARY, ASSOCIATED AND RELATED COMPANIES AND JOINT VENTURES (Unit : Thousand Baht) Consolidated The Company Only Pricing policy 30 September 31 December 30 September 31 December 2000 1999 2000 1999 Receivables from sales of construction materials and others Subsidiaries - Construction Material Supply Company Limited - - 13,268 30,921 Close to market price - Bangkok Concrete Industries Company Limited - - 21,686 297 Close to market price - Other subsidiaries - - 1,854 1,058 Close to market price - - 36,808 32,276 (UNAUDITED BUT REVIEWED) (Unit : Thousand Baht) Consolidated The Company Only Pricing policy 30 September 31 December 30 September 31 December 2000 1999 2000 1999 Related companies (more)