ข่าวแจ้งตลาดหลักทรัพย์

Disclosure of the companys lending to subsidiaries,related companies and joint ventures. Percentage 1998 1997 Loan policy of profit sharing Baht Baht of relater Joint venture 93% 6,400,000 - Market borrowing at rate 16.5% - 17.5% Joint venture 25% 140,000,000 - Market borrowing at rate 15% In the first quarter, 1998, the parent company had devalued the construction contract with joint venture that the company has profit sharing of 35 percent because the joint venture had the overdue debt balance with the company and in order to retain liquidity and reduce financial cost. The parent company still supports for the cunstruction supplies for the joint venture as usual. In the companys financial statements and consolidated financial statements, the said joint venture has the debt balance totalling in the amount of Baht 751 million and Baht 488 million, respectively. NOTE 3 - BASIS OF FINANCIAL STATEMENTS The consolidated financial statements of CH. Karnchang Public Co., Ltd. , subsidiaries and joint ventures have been prepared in accordance with generally accepted accounting principles and Ministerial Regulations No.7 (1996) dated October 25, 1996. Joint ventures included in the consolidation are those having major responsibility and significant in success of result being responsible by CH. Karnchang Public Co., Ltd. and or its subsidiaries. The Consolidated financial statements for the three-month periods ended March 31, 1998 and 1997 are consisted of the financial statements of CH. Karnchang Public Co., Ltd., subsidiaries and joint ventures. In the third quarter of 1997, the company had changed its accounting method for the preparation of the consolidated financial statements for joint ventures from the same method used with subsidiaries for joint ventures which CH. Karnchang Public Co., Ltd. has control in operation over 50% to be the proportionated method for all joint ventures that the company had a joint control. The company has adjusted the previous years financial statements to the same basis, to enable comparison of the financial statements. The consolidated financial statements for the three-month periods ended March 31, 1998 and 1997 are consisted of the financial statements of CH. Karnchang Public Co., Ltd., subsidiaries and joint ventures by proportion as follows: Percentage Holding by Parent Company or Percentage of profit sharing in Joint Ventures Subsidiaries CH. Karnchang Real Estate Co., Ltd. and Partnerships Limited 99.00% Bangkok Metro Co.,Ltd. 79.94%(in 1998) CH. Karnchang-Tokyu Construction Co., Ltd. and Joint Ventures 55.00% Equity in Joint Ventures Joint Venture Phuket Consortium Consists of CH. Karnchang Public Co., Ltd., Thames Water International (Thailand) Co., Ltd, Index International Group Co., Ltd. and Trio Consultant Co., Ltd. 93.00% Joint Venture CH. Karnchang Public Co., Ltd. Tokyu Construction Co., Ltd. in joint venture with CH. Karnchang - Tokyu Construction Co., Ltd. - Highway Project 60.00% - Expressway Project 40.00% Joint Venture CH. Karnchang Public Co., Ltd., Bilfinger and Berger Bauaktiengesellschaft, Tokyu Construction Co., Ltd. and CH. Karnchang - Tokyu Construction Co., Ltd. - Second Stage Expressway Project Part B Route Phayathai - Bangkhlo 53.20% - Second Stage Expressway Project Part C+ Route Chaeng Watthana - Bang Phun and Bang Sai 59.99% - Second Stage Expressway Project Part D Route Asoke - Srinakarin 59.99%(in 1998) - Second Stage Expressway Project Part C1A Route Ngam Wong Wan - Chaeng Watthana 59.99%(in 1998) Joint Venture TWCK (Thames Water International (Thailand) Ltd. and CH. Karnchang Public Co., Ltd.) 50.00% Joint Venture BBCD Bilfinger and Berger Bauaktiengesellschaft , CH. Karnchang Public Co., Ltd. and Dyckerhoff & Widmann AG 35.00% Percentage Holding by Parent Company or Percentage of profit sharing in Joint Ventures Joint Venture BCKT Bilfinger and Berger Bauaktiengesellschaft, CH. Karnchang Public Co., Ltd. Kumagai Gumi Co., Ltd., and Tokyu Construction Co., Ltd. 25.00% CH. Karnchang Public Co., Ltd. in joint venture with Thames Water International (Thailand) Co., Ltd. Index International Group Co., Ltd. and Trio Consultant Co., Ltd. made agreement with The Civil Department, the Ministry of Interior to design and construct drainage system and waste water treatment system for Phuket Municipality of Phuket Province as contract date May 31, 1994, and sent the last invoice to contractor in the second quarter 1997. CH. Karnchang Public Co., Ltd. in joint venture with CH. Karnchang - Tokyu Construction Co., Ltd and Tokyu Construction Co.,Ltd. made agreement with - The Department of Highways to construct Bangkok - Chon Buri New Highway Project from Anuj to Klong Kalong as contract dated September 30, 1993, and Bangkok - Chonburi new highway Bang Bo Interchange and road to Highway No 34 as contract dated August 30, 1994. The Joint Venture has completed construction work, Bangkok - Chon Buri highway project from Anuj - Klong Kalong and Bangkok Chonburi new highway Bang Bo interchange project and road to highway No.34, and delivered to the contractor in the fourth quarter 1997 and the first quarter 1998. - The Expressway and Rapid Transit Authority of Thailand to construct Ramindra - Atnarong Expressway System and BMAS Road project contract No. 7 : Lat Phrao Rd. - Soi Sukha as contract dated December 3, 1993, November 3 and 18, 1994. The Joint Venture has completed contraction work, Ramindra - Atnarong Expressway and BMAS Road project; Lat Phrao Rd., Soi Sukha, and delivered to contractor in the third quarter 1996. The amount of completed construction is less than contract price which has already accepted by the employer. CH. Karnchang Public Co., Ltd in joint venture with Bilfinger and Berger Bauaktiengesellschaft, Tokyu Construction Co., Ltd. and CH. Karnchang - Tokyu Construction Co., Ltd. made agreement with - Bangkok Expressway Public Co., Ltd. to construct Second Stage Expressway System Part B, from Phayathai interchange to Bangkhlo as contract dated March 14, 1994, which has completed and delivered to the employer in the third quarter 1996. - Northern Bangkok Expressway Co., Ltd. to construct Second Stage Expressway Part C+ Bang Pa-in to Pak Kret, Sector 1, from Chaeng Wattana to Bang Pun and Bang Sai as contract dated September 27, 1996. - Bangkok Expressway Public Co., Ltd. to construct Second Stage Expressway System Part D from Asoke - Srinakarin as contract dated April 17, 1997. - Bangkok Expressway Public Co., Ltd. to construct Second Stage Expressway System Part C1A to expand lanes, from Ngam Wong Wan to Chaeng Wattana from a dual two - lane to dual three - lane carriageway as contract dated April 17, 1997. CH. Karnchang Public Co., Ltd. in joint with Thames Water international (Thailand) Ltd. have made agreement with Pathumthani Water Company Ltd. to construct water producing and distribution plant in the Prathumthani Province as contract dated November 21, 1995. CH. Karnchang Public Co., Ltd. in joint with Bilfinger and Berger Bauaktiengesellschaft, and Dyckerhoff &Widmann AG to construct Bangna- Bang Pli - Bang Pakong Expressway Project as contract dated June 28, 1995. CH. Karnchang Public Co., Ltd. in joint with Bilfinger and Berger Bauaktiengesellschaft, Kumagai Gumi Co., Ltd. and Tokyu Construction Co., Ltd. to construct the initial underground transit section from Hua Lamphong to Bang-Su as contract date November 5, 1996. CH. Karnchang - Tokyu Construction Co.,Ltd. in joint with CH. Karnchang Public Co.,Ltd. made agreement with the Police Department for the design and the construction of the police department office building, together with car park and other related constructions as contract dated September 30, 1996. CH. Karnchang - Tokyu Construction Co., Ltd. in joint with Tokyu Construction Co., Ltd. made an agreement with Joint Venture CH. Karnchang Public Co., Ltd., Bilfinger and Berger Bauaktiengesellschaft, Tokyu Construction Co., Ltd. and CH. Karnchang - Tokyu Construction Co., Ltd. to construct Bang Pa-In- Pak-Kret Expressway sector 15 & 16 as contract dated August 14, 1997. The result of the subsidiarys operation was presented in consolidated financial statements since the acquisition date. The significant related transactions, investment of parent company and shareholders equity of subsidiaries, were eliminated from this consolidated financial statements. Excess in book value over cost of investment in subsidiaries limited partnership are adjusted to retained earnings at the beginning of year. NOTE 4 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition for Construction Company recognized revenue from construction on percentage of completion. Revenue from additional work and the construction that have working period not over 1 year are recognized on work done and billed to customer. Subsidiary company and joint ventures which subsidiary have joint control recognized revenue on work done and billed to customer . Joint ventures and limited partnership recognized revenue on percentage of completion. Revenues from moving infrastructure, additional work and other contract work are recognized on work done and billed to customer. Revenue and Expenses Recognition Revenue and expenses are recognized on an accrual basis. Allowance for Doubtful Accounts Allowance for doubtful accounts is provided based on the review of the current status of each account. Construction contract in progress The cost of construction contract in progress comprises the cost of materials and labor, sub contractor charges, the services and overheads plus attributable net profit or loss less amount billed to customers. Supplies for Construction and Consturction in Progress Supplies for construction are valued at cost using first-in-first- out method. Construction in progress are valued at cost. Investment Investment in subsidiaries, associated company and joint ventures which the company has significant influence are stated according to the equity method. Investment in marketable securities are stated at the lower of cost or net realizable value and other investment are stated at cost. Excess in Book value over Cost of Investment Excess in book value over cost of investment is the difference of book value compare with amount paid for acquisition cost of investment which is written off to retained earnings at the beginning of year. Property, Plant and Equipment Property plant and equipment are stated at cost less accumulated depreciation. Depreciation are computed by the straight-line method over the estimated useful lives as follows: Building 20 years Equipment 5 years Leasehold improvement according to remaining project life For the equipments acquired by a partnership before 1993, depreciation was computed by straight line method from the book value at January 1, 1993, for 5 years. Company Establishment Expenses Company Establishment expenses are amortized within five years from date of operation. Pre-operating Expense Pre-operating expense is amortized according to the project - period from the date of commencement of the operations. Deferred Charges Deferred charges are related to underwriter fees will be amortized as expenses within two years, expense of providing finance, successful biding project, leasehold improvement will be amortized according to the related contracts and loan periods. Foreign Currency Transactions Foreign currency transactions during the periods are translated to Baht at the exchange rate at the transaction dates. Foreign currency balances at the balance sheet date are translated at the exchange rates ruling on that date. Foreign currency balances which are secured by the agreement are translated using exchange rate of the agreement. Exchange gains and losses are included in determining income. Exchange gains or losses from the forward foreign exchange contract are amortized as expense or income in the statement of income by contract period, according to the period of each contract. Earnings per Share Earnings per share are calculated by dividing the net profit for the period by the number of shares outstanding at the end of periods. NOTES 5 - CASH IN HAND AND AT BANKS As at March 31, cash at banks of joint ventures in the amount of Baht 106 million in 1998 and subsidiary company in the amount of Baht 5 million in 1997 are used as collateral for bank overdraft, letters of credit and bank guarantees. NOTE 6 - NOTES RECEIVABLE - FINANCE COMPANIES As at March 31, 1998 notes receivable in finance companies in the amount of Baht 147.8 million were formally promissory notes in finance companies which Bank of Thailand has suspended operations and it can not redeemed within 5 years under the conditions prescribed by the Ministry of Finance. NOTE 7 - INVESTMENTS IN SUBSIDIARIES, ASSOCIATED, RELATED, OTHER COMPANIES AND JOINT VENTURES As at March 31, investments in subsidiary companies and joint ventures comprise: Percentage Holding by Parent Company Dividend Business or Percentage of profit sharing Cost method Equity method or profit sharing Classification Relationship in Joint Ventures (Amounts : Thousand Baht) 1998 1998 1998 1997 1998 Subsidiaries - CH. Karnchang Real Estate Co., Ltd. and Partnerships Limited 99 158,400 286,526 255,357 - Investment and construction Co-director - CH. Karnchang-Tokyu Construction Co., Ltd. and Joint Ventures 55 55,000 173,208 142,118 - Construction Co-director Equity in Joint Ventures - Joint Venture Phuket Consortium Consists of CH. Karnchang Public Co., Ltd., Thames Water International (Thailand) Co., Ltd., Index International Group Co., Ltd., Trio Consultant Co., Ltd. 93 - - 7,983 - Construction Co-director - Joint Venture CH. Karnchang Public Co., Ltd. Tokyu Construction Co., Ltd. in joint venture with CH. Karnchang - Tokyu Construction Co., Ltd. Construction Co-director Highway Project 60 - 52,992 26,446 - Expressway Project 40 - 41,260 45,575 8,000 - Joint Venture CH. Karnchang Public Co., Ltd. Bilfinger + Berger Bauaktiengesellschaft Tokyu Construction Co., Ltd. and CH. Karnchang - Tokyu Construction Co., Ltd. Second Stage Expressway Project Part B Route Construction Co-director Phayathai - Bangkhlo 53.20 - 258,173 332,260 20,400 Second Stage Expressway Project Part C+ Route Chaeng Watthana - Bang Phun & Bang Sai 59.99 - 422,680 120,364 - Second Stage Expressway Project Part D Route Asoke - Srinakarin 59.99 - 15,172 - - Second Stage Expressway Project Part C1A Route Ngam Wong wan - Chaeng Wattana 59.99 - 9,302 - - - Joint Venture TWCK Thames Water International (Thailand) Ltd. and CH. Karnchang Public Co., Ltd. 50 - 136,477 68,254 - Construction Co-director (More)