ข่าวแจ้งตลาดหลักทรัพย์

Property, Plant and Equipment Property plant and equipment are stated at cost. 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 equipment's acquired by a partnership before 1993, depreciation was computed by straight line method from the book value at January 1, 1993, the useful life of 5 years. Investment on land was recorded in appraised price which was estimated by independent appraisal. Company Establishment Expenses Company establishment expenses are amortized within five years from date of operating. Pre-operating Expense Pre-operating expense is amortized according to the project - period from the date of commencement of the operations. Deferred Charges Almost deferred charges are related to 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. Premium or discount from foreign exchange forward contracts are amortized as expense or income included in statement of income according to each foreign exchange forward contract periods. Forward contracts for speculation at the balance sheet date are translated to Baht at the forward exchange rate ruling on that date. Forward contracts to prevent losses from foreign currency commitment at the balance sheet date are translated to Baht at exchange rate ruling on that date. Earnings per Share Earnings per share are calculated by dividing the net profit for the periods by the number of shares outstanding at the end of periods. NOTES 5 - SHORT-TERM INVESTMENT As at March 31, cash at bank - fixed deposit of the parent company in the amount of Baht 20,000 and of one joint venture in amount of Baht 31.50 million are used as collateral for bank guarantee of using electricity and forward contract in 1999 and cash at bank of joint ventures in amount of Baht 106 million are used as collateral for letter of credit and bank guarantee from banks in 1998. NOTES 6 - ACCOUNTS RECEIVABLE As at March 31, 1999, the company had account receivable which were classified by account receivable aging as follows: Amounts : Thousand Baht Construction contract receivables Consolidated CH.Karnchang Public Co.,Ltd Related Other Related Other Joint Ventures Receivables Total Joint Ventures Receivables Total Less than 3 months 622,322 597,586 1,219,908 264,411 246,433 510,844 More than 3 to 6 months 149,400 573 149,973 185,122 573 185,695 More than 6 to 12 months 123,911 7,527 131,438 78,363 7,527 85,890 More than 12 months 266,873 - 266,873 409,070 - 409,070 1,162,506 605,686 1,768,192 936,966 254,533 1,191,499 Retentions - 191,671 191,671 - 27,010 27,010 Total 1,162,506 797,357 1,959,863 936,966 281,543 1,218,509 The company does not record allowance for doubtful accounts. The management has explained that the related joint venture has been affected by the economic recession and overall Thailand's liquidity problem in 1997 which being recovered since 1998. The joint venture started to repay its debt and in fisical year of 1999 the company plans to discuss with the joint venture regarding to its finance structure in order that the joint venture can make full repayment within the third quarter of 1999. As at March 31, 1999, the joint venture which the company has 59.99% of profit sharing had an account receivable from additional construction work in the approximate amount of Baht 101.8 million. The employer was in the process of inspection valuation of work according to the invoice which the employer's independent engineer had a notice for recognition additional construction work to the said joint venture. The said construction work was completed in 1998. NOTE 7 - SUPPLIES FOR CONSTRUCTION AND CONSTRUCTION IN PROGRESS As at March 31, 1999, the joint venture which the company has 35% of profit sharing had construction in progress in the approximate amount of Baht 232.41 million which was the additional work extended from main construction contract such as bridge junction with the main contract work. The said construction in progress was certified by employer's independent engineer and certain works are in process of employer's approval in amount of Baht 226.63 million. NOTE 8 - ADVANCE TO SUBCONTRACTOR As at March 31, 1999 a joint venture which the company has 50% of profit sharing has outstanding balance of advance payment to an affiliate company in amount of USD 1.6 million. The joint venture expected to submit the whole construction work in 1999. The outstanding significant advance payment amount to the affiliate company resulted from the delay in shipping supplies. The joint venture will reduce this outstanding balance by compensation with balance in payable and reimbursement from the affiliate company in the future. NOTE 9- OTHER CURRENT ASSETS As at March 31, 1999, other current assets included receivable from Revenue Department to the joint venture which the company has 50% of profit sharing in the amount of Baht 23.65 million from Value Added Tax. The joint venture will refund its Value Added Tax in cash when its project finished. As at March 31, 1999, other current assets included the other receivables of the joint venture which the company has 35% of profit sharing was incurred by an advance payment to a subcontractor in order to solve the problem of reiterate work. The Expressway and Rapid Transit Authority of Thailand will take responsibility of compensation cost by payment through variation order of joint venture. Since the approval of reimbursement for variation order is in process and the said subcontractor has partly completed its construction, the joint venture had to pay advance to the said subcontractor which was included in the consolidated financial statements in the approximate amount of Baht 15.4 million. NOTE 10 - NOTE RECEIVABLE - FINANCE COMPANIES In 1999 and 1998, promissory notes from finance companies in the amount of Baht 42.1 million and Baht 147.8 million, respectively, are promissory notes from finance companies which Bank of Thailand has suspended operations and it can not redeem 5 years before due date under the conditions prescribed by the Ministry of Finance. NOTE 11 - INVESTMENTS IN SUBSIDIARIES, 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 Cost method Equity method or profit sharing payment Classification Relationship (Amounts : Thousand Baht) sharing in Joint Ventures 1999 1999 1998 1999 1998 Subsidiaries - CH. Karnchang Real Estate Co., Ltd. and Partnerships Limited 99 158,400 280,456 286,526 - - Investment and construction Co- director - Bangkok Metro Co., Ltd. 79.94 799 - - - - PublicUtili Consession Co- director - CH. Karnchang-Tokyu Construction Co., Ltd. and Joint Ventures 55 55,000 199,187 173,208 - - Construction Co- director Equity in Joint Ventures - Joint Venture CH. Karnchang Public Co., Ltd., Tokyu Construction Co., Ltd. in joint venture with CH. Karncahng - Tokyu Construction Co., Ltd. Highway Project 60 - 2,030 52,992 - - Construction Co-director Expressway Project 40 - 392 41,260 - 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 Sector B Route Phayathai Bangkhlo 53.20 - 73,434 258,173 - 20,400 Construction Co-director Percentage Holding by Parent Company Dividend Business or Percentage of profit Cost method Equity method or profit sharing payment Classification Relationship (Amounts : Thousand Baht) sharing in Joint Ventures 1999 1999 1998 1999 1998 - Second Stage Expressway Project Sector C+ Route Chaeng Watthana - Bang Phun & Bang Sai 59.99 - 632,417 422,680 - - - Second Stage Expressway Project Sector D Route Asoke Srinakarin 59.99 - 48,269 15,172 - - - Second Stage Expressway Project Sector C1A Route Ngam Wong wan - Chaeng Wattana 59.99 - 36,195 9,302 - - - Joint Venture TWCK (Thames Water International (Thailand) Ltd. and CH. Karnchang Public Co., Ltd.) 50 - 84,452 136,477 - - Construction Co-director - Joint Venture BCKT Bilfinger + Berger Bauaktiengesellschaft, CH. Karnchang Public Co., Ltd., Kumagi Gumi Co.,Ltd.,and Tokyu Construction Co., Ltd. 25 - 36,531 15,472 - - Construction Co-director Total Investment in subsidiaries and joint ventures 214,199 1,393,363 1,411,262 - 28,400 As at March 31, investment in related and other companies comprise: Percentage Holding Consolidated CH. Karnchange Public Co., Ltd. Dividend Business by Parent Company Amount Amount classification Relationship (Amounts : Thousand Baht) 1999 1998 1999 1998 1999 1998 Investment in Related Companies - Pathumthani Water Company Ltd. 15.00 165,298 149,450 165,298 149,450 - - Public Utility Concession Investment - Bangkok Expressway Public Co., Ltd. 13.81 2,870,374 2,527,705 2,612,493 2,387,266 - - Public Utility Concession Investment Investment in Other Companies - Nava Finance and Securities Public Co., Ltd. - 27,291 113,570 27,291 113,570 - - Financial Institution None - Bangkok Tokyu Department Store Co.,Ltd - 2,280 - - - - - Department Store None - Kruasakul Co., Ltd. 10.14 43,750 43,750 43,750 43,750 - - Real Estate Development None - Tokyu Merchandise Development Co., Ltd. - - 15,000 - - - - Department Store None - Tokyu Department Store (Thailand) Co., Ltd. - - 2,100 - 600 - - Department Store None - The Bangkok Club Co., Ltd. 0.57 3,000 3,000 3,000 3,000 - - Entertainment None - Chanthaburi Country Club Co., Ltd. 0.25 2,000 2,000 2,000 2,000 - - Real Estate Development None Total Investments 3,113,993 2,856,575 2,853,832 2,699,636 Less Allowance for devaluation ofinvestments (27,291) (17,100) (27,291) (600) - - Total Investment - Net 3,086,702 2,839,475 2,826,541 2,699,036 - - Valuation of Investments 1. As at March 31, 1999 and 1998, investment in Bangkok Expressway Public Company Limited. The parent company invested in the said company at cost in the approximate amount of Baht 1,992.6 million and Baht 2,387.27 million, respectively. This investment was valued at market price in approximate amount of Baht 2,612.49 million and Baht 4,231.27 million, respectively. Subsidiary company had this investment at cost in the approximate amount of Baht 140.4 million, carried a market value in approximate amount of Baht 257.88 million and Baht 348.62 million, respectively. Investment in Bangkok Expressway Public Company Limited was recorded in fair value in 1999 and in the lower of cost or net realizable value in 1998. The company recorded investment in Bangkok Expressway Public Company Limited in fair value according to generally accepted accounting principles applied for financial statements of fiscal year 1999. 2. As at March 31, 1999, investment in Nava Finance and Securities Public Co.,Ltd., in approximate amount of Baht 27.3 million, there was no market price at the ended of period. According to the report of Office of the Auditor General on the financial statements for the year ended December 31, 1998, dated April 1, 1999, reported with qualifications regarding inadequacy of the allowance for doubtful debt. Since Bank of Thailand has instruction to the company dated May 17, 1998 to devalue its share capital from Baht 10.00 to Baht 0.01 par value and then increase the capital and change the board of directors. In addition, the Financial Institutions Rehabilitation Fund subscribed the additional capital and it also merged by transferring assets and liabilities. The company therefore considered to set up the allowance for devaluation of the whole mentioned security. As at March 31, 1998, this investment is in the amount of Baht 113.6 million at cost (The market value is in approximate amount of Baht 16.5 million.) the value of investment was not devalued due to the total market value of marketable securities was higher than the total cost. 3. As at March 31, 1998, investments in Tokyu Merchandise Development Co., Ltd. and Tokyu Department Store (Thailand) Co., Ltd., totalling cost in approximate amount of Baht 17.1 million, as at July 31, 1996, had a deficit greater than the amount of issued share capital. The company has considered to set up allowance for devaluation of the said investment. In the forth quarter of 1998, the company sold its investment in both companies to Tokyu Department Store (Japan) Co.,Ltd. at cost. Selling Investment In the first quarter of 1998, according to the minute of the executive board of directors meeting, no 1/1998 held on 15 January 1998, the management's resolution was pass to sell a portion of its investments in Bangkok Expressway Public Company Limited which is resulting the gain on sale in the amount of Baht 68.10 million. Pledged Investments As at March 31, 1999 and 1998, in consolidated financial statements, investments in related companies in approximate amounts of Baht 502.2 million and Baht 500.2 million, respectively, were pledged to secure construction for joint ventures and related company, and as a collateral for loans from banks and financial institutions for related company. As at March 31, in the company's financial statements, subsidiaries company and Joint Ventures which had liability balances at the end of period were presented as other liabilities comprise: Percentage of share Holding by Parent Company Dividend Business or Percentage of profit sharing Equity Method or profit sharing Classification Relationship (Amounts : Thousand Baht) in joint venture 1999 1998 payment - 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 2,477 1,134 - Construction Co - director - Bangkok Metro Co., Ltd. 79.94 5,247 - - Public Utility consession Co - director - Joint Venture BBCD Bilfinger and Berger Bauaktiengesellschaft, CH. Karnchang Public Co., Ltd., Dyckerhoff + Widmann AG 35.00 964,099 237,200 - Construction Co - director Total Other Liabilities 971,823 238,334 - NOTE 12 - PROPERTY, BUILDING AND EQUIPMENT - NET As at March 31, 1999 some vehicles of the parent company, the ownerships were registered under the name of a subsidiary and are not being transferred to the company. As at March 31, 1999 and 1998 most equipments and vehicles of joint ventures which the company has 59.99% and 35% of profit sharing were registered under the name of participants or related companies or subcontractors. For the subcontractor, the joint venture informed that the assets were registered under the name of subcontractor in order to have convenience for its operation. However, this subcontractor confirmed that these assets are belong to the joint venture. Machinery, equipment and vehicles of the joint ventures in the approximate amount of Baht 15.59 million, and Baht 254 million respectively, have not yet been registered as joint venture assets. The joint venture which the company has 25% of profit sharing had made land rental contract with other company for plant of producing supplies for construction purpose. Rental period is shorter than project life. When the rental contract period is over, the joint venture can renew the said rental contract as mentioned in the contract. NOTE 13 - OTHER ASSETS As at March 31, 1999 and 1998, the withholding tax which was prepaid no more than 3 years for the company's financial statements in the amount of Baht 161.9 million and Baht 81.7 million, respectively and in the consolidated financial statements in the amount of Baht 252.2 million and Baht 194 million, respectively, have not yet be requested for refund by the parent company, subsidiaries, and joint ventures. As at March 31, 1999, the consolidated financial statements and the company's financial statements included deferred expense of Baht 13.34 million incurred since 1994 to 1997 for bidding the power purchase concession project generated by waterpower from Num Ngum dam. The result of this bidding can not be determined in this moment. As at March 31, 1999, the consolidated financial statements included deferred expense of Baht 74.74 million incurred from biding MRTA concession project which the bidding result can not be determined in this moment. NOTE 14 - BANK OVERDRAFTS AND LOAN FROM BANKS As at March 31, bank overdrafts and loans from banks are as follows: - The parent company, certain loans are foreign currency issued in promissory note in amount of USD 5 million with interest rate of 7.8125% per annum. The company has fully insured against the risk from exchange rates. Bank overdrafts and loan from banks of parent company are secured by claims in receipt from construction and company's directors. - Two limited partnerships in 1999 and 1998 are secured by claims in receipt from construction, and pledged by securities of related company, partners and directors of the company. - A joint venture which the company has 35% of profit sharing had loan contracts with domestic commercial banks and foreign banks in the amount of Baht 1,150 million, and foreign currency in amount of USD 38.57 million and Yen 8,981.66 million in the 1999, and the amount of Baht 1,288 million and foreign currency in amount of USD 88.40 million and Yen 1,333 million in 1998. The joint venture has insured against the risk from exchange rates in the approximate amount of USD 10.37 million and USD 7.8 million in the 1999 and 1998, respectively. - Certain of the said loans are guaranteed by the parent company, participants and letter of consent from joint venture that bank may deduct any delinquent payment of fees, interest and principal from the discount sale of the promissory notes issued by employer. NOTE 15 - LIABILITIES UNDER DISCOUNTED NOTES RECEIVABLE Liabilities under discounted note receivables of a joint venture incured from the discounted of notes receivable from the owner with 4 Banks, the issuance date on these notes receivable are varied. NOE 16 - LONG-TERM LOANS As at March 31, long term loans are as follows: - In 1999 and 1998, the parent company has a long-term loan from foreign financial institutions in the amounts of USD 30 million and USD 40 million respectively, with interest rate SIBOR + 1% per annum. The company made an agreement to secure the risk from exchange rate of the whole loan on August 30, 1996 and May 12, 1997. The repayment will be made in semi - annually basis starting from August 1997. Each of the first four installments are USD 5 million. The remaining amount of repayments is due within 1 year after. And the long-term loan in amount of Baht 200 million consists of two promissory notes in amount of Baht 100 million each which are due in 1998 and 1999. The company postponed its repayment by cancelling and issuing two new promissory notes which will be due in 2000 with interest rate of MLR+1.5% per annum. - The joint venture which the company has 59.99% of profit sharing had a long-term loans from local commercial banks, by transferring the right of the claim for receipt of repayment from the employer according to the construction agreement to the bank as collateral of the said loan. Certain loans are guaranteed by the participants which is comprised of: In the approximate amount of Baht 76.6 million and Baht 750 million in 1999 and in 1998, respectively with interest rate of MLR, MLR+0.5% ,the repayment of principle will be made on a monthly basis in approximate amount of Baht 100 million per installment, starting from July 1998. Since October 1998, the joint venture had repaid the principal on monthly basis in amount of 55% of monthly actual received of billings from the employer which is less than Baht 100 million. The repayment would be completed within June 1999. In the amount of Baht 60 million and Baht 300 million in 1999 and in 1998, respectively with interest rate of MRR+3.75%, the repayment was on a monthly basis, in the amount of Baht 30 million per installment, starting from August 1998. And in the amount of Baht 1,026.70 million and Baht 1,200 million in 1999 and 1998, respectively with interest rate of MLR, the repayment was on a monthly basis in the amount at least 50% of construction work received each month, but not less than Baht 100 million, starting from October 1998 or when the joint venture has received revenue from the employer to totalling not less than 55% of the contract price whatever is earlier. The joint venture changed conditions of loan repayment to be on monthly basis and in amount not less than 20% of construction work received each month, started in January 1999, or when joint venture has received revenue from employer not less than Baht 3,300 million whatever is earlier. The joint venture has to repay at least in amount of Baht 1,000 million within February 2000 and repay the rest of principal in amount of Baht 200 million within June 2002. The condition for repayment can be changed, depend on the ability of employer's work payment in the future. - A joint venture which the company has 35% of profit sharing has a long-term loan from a local commercial bank in the amount of Baht 688 million in 1999 and 1998, the repayment is separated into 4 installments according to the agreement. The repayment of all loan was postponed to November, 1999 by joint venture. And from a finance company in the amount of Baht 533.97 million and Baht 633.97 million in 1999 and 1998, respectively. In 1999 the repayment schedule have been changed to be made in September 1999 and October 1999 in the approximate amount of Baht 106.79 million and Baht 427.18 million, respectively. Long-term loans of this joint venture have been guaranteed by the participants. - In 1999, a joint venture which the company has 25% of profit sharing had a long term loan from a local commercial bank in the amount of Baht 500 million with interest rate of MLR + 1.25%. The repayment of principal was on a monthly basis in the amount 20 % of construction revenue received each month, but not less than Baht 35 million, starting from November 1999, by tranferring the right of the claim for receipt of repayment from the employer for only Baht currency portion according to the construction agreement with the bank as collateral of the said loan and guaranteed by the participants In the 1999 and 1998, the current portion of long-term loan included current portion of discounted notes receivable in approximate amounts of Baht 2,907.88 million and Baht 1,222 million respectively, of the joint venture which the company has 35% of profit sharing is shown under current liability. (More)