SET Announcements

Baht Baht Baht Baht Installments due 2,665,552,886.58 3,089,852,708.50 1,171,590,556.21 1,667,853,246.47 Less : cash received (2,662,088,816.58) (3,082,653,100.90) (1,171,590,556.21) (1,667,853,246.47) Installment account receivables 3,464,070.00 7,199,607.60 - - Accounts, note receivables and unbilled completed work - net as at December 31, consisted of: Consolidated The Company 1999 1998 1999 1998 Baht Baht Baht Baht Installments due 2,665,552,886.58 3,089,852,708.50 1,171,590,556.21 1,667,853,246.47 Less sales recognized to date (2,678,165,243.39) (3,101,110,845.23) (1,171,590,556.21) (1,655,266,383.00) Add revenues from contract cancellation 12,612,356.81 12,794,670.95 - - - 1,536,534.22 - 12,586,863.47 The balance consisted of: Unbilled completed work - 16,477,204.25 - - Unearned income - (18,013,738.47) - (12,586,863.47) - (1,536,534.22) - (12,586,863.47) Consolidated The Company 1999 1998 1999 1998 Baht Baht Baht Baht Installment accounts receivable 3,464,070.00 7,199,607.60 - - Unbilled completed work 307,590.44 16,477,204.25 - - Service receivables 9,461,047.51 9,549,944.00 24,834,696.89 25,909,626.48 Total accounts and notes receivable and unbilled completed work 13,232,707.95 33,226,755.85 24,834,696.89 25,909,626.48 Less Allowance for doubtful accounts (7,057,762.93) (5,556,839.90) (2,105,158.42) (4,226,855.37) Total accounts and notes receivable and unbilled completed work - net 6,174,945.02 27,669,915.95 22,729,538.47 21,682,771.11 Accounts, note receivables and unbilled completed work - net as at December 31, 1999 and 1998 classified by the aging receivable are as follows: Consolidated The Company 1999 1998 1999 1998 Baht Baht Baht Baht Unbilled completed work and service receivables 307,590.44 16,477,204.25 - - Over 1 - 3 months 5,719,123.38 10,492,940.23 3,259,930.86 8,171,175.35 Over 3 - 6 months 467,594.74 958,480.99 - 2,118,471.28 Over 6 - 12 months 277,752.86 547,642.63 - 9,657,918.08 Over 12 months 6,460,646.53 4,750,487.75 21,574,766.03 5,962,061.77 Less Allowance for doubtful accounts (7,057,762.93) (5,556,839.90) (2,105,158.42) (4,226,855.37) Net 6,174,945.02 27,669,915.95 22,729,538.47 21,682,771.11 NOTE 8 - LOAN TO RELATED PARTIES - NET Loan to related parties - net as at December 31, consisted of: Consolidated The Company 1999 1998 1999 1998 Baht Baht Baht Baht Subsidiary companies - Chanachai Limited - - 129,648,738.08 62,349,510.92 - Sanpinyo Limited - - 141,012,297.58 142,886,732.65 - Prakarn Limited - - 51,263,033.60 52,117,308.53 - Jainad Limited - - 232,947,526.06 298,906,526.93 - Sansiri Property Plus Limited - - - - Related company - Regency One Co., Ltd. 5,000,000.00 5,000,000.00 - - Total 5,000,000.00 5,000,000.00 554,871,595.32 556,260,079.03 Less Allowance for doubtful accounts (5,000,000.00) (5,000,000.00) (250,000,000.00) - Net - - 304,871,595.32 556,260,079.03 The Company charges interest to subsidiaries at the rate of 8 - 16.75 percent per annum. Loan to related company, which was Chanachai Co., Ltd, a subsidiary, is granted with interest at the rate MLR per annum. As at December 31, 1999, the Company had loans to related parties and interest receivable classified by the aging receivable as follows: (Amounts in Baht) Consolidated The Company Principal Interest receivable Principal Interest receivable At call - - 554,871,595.32 - Over 1 - 3 months - - - - Over 3 - 6 months - - - - Over 6 -12 months - - - 1,556,089.75 Over 12 months 5,000,000.00 332,808.22 - 12,081,103.59 Less Allowance for doubtful accounts (5,000,000.00) (332,808.22) (250,000,000.00) - Net - - 304,871,595.32 13,637,193.34 As at December 31, 1998, the Company had loans to related parties and interest receivable classified by the aging receivable as follows: (Amounts in Baht) Consolidated The Company Principal Interest receivable Principal Interest receivable At call - - 556,260,079.03 - Over 1 - 3 months - - - 12,904,816.34 Over 3 - 6 months - - - 9,135,084.85 Over 6 -12 months - - - - Over 12 months 5,000,000.00 332,808.22 - - Less Allowance for doubtful accounts (5,000,000.00) (332,808.22) - - Net - - 556,260,079.03 22,039,901.19 NOTE 9 - PROJECT DEVELOPMENT COST - NET Project development cost - net as at December 31, 1999 is as follows: (Amounts in Baht) Consolidated The Company Transfer to Net Allowance Outstanding balance - net Outstanding balance - net Revalued by Total cost cost of sales/rent/ for sales for rentfor for for sales for rent for sales for rent independent repayment devaluation appraisers Land and project development cost -Lung Suan (658) 702,180,891.61 702,180,891.61 - - - - - - - - - Bann Sansaran 1,453,663,166.68 1,438,706,475.39 14,956,691.29 - 4,568,991.29 10,387,700.00 - 10,387,700.00 - 10,387,700.00 - Bann Ploenchi 443,334,866.77 443,334,866.77 - - - - - - - - - Bann See Tis 220,420,771.22 - - 220,420,771.22 141,940,771.22 - 78,480,000.00 - - 78,480,000.00 - Bann Piyasathon 1,094,277,467.74 1,094,277,467.74 - - - - - - - - Project development cost - Century 77,384,921.02 - - 77,384,921.02 77,384,921.02 - - - - - - Terrace Court 59,799,222.00 - - 59,799,222.00 6,099,222.00 - 53,700,000.00 - 53,700,000.00 53,700,000.00 Leasehold and project development cost - Baan Sansiri 609,983,976.64 122,678,586.64 - 487,305,390.00 - - 487,305,390.00 - - - - Lung Suan 536,623,426.42 - - 536,623,426.42 283,516,431.13 - 253,106,995.29 - - 253,106,995.29 Total 5,197,668,710.10 3,801,178,288.15 14,956,691.29 1,381,533,730.66 513,510,336.66 10,387,700.00 872,592,385.29 10,387,700.00 53,700,000.00 395,674,695.29 In 1999 the parent company and subsidiaries revalued project development by independent appraisers approved by the Stock Exchange Committee. Project development cost as at December 31, 1998 was as follows:(Amounts in Baht) Consolidated The Company Transfer to Net Transfer to Net Total cost cost of sales+ For sales For rent Total cost cost of sales/ For sales For rent For rent/ Repayment Land and project development cost - Lung Suan (658) 702,180,891.61 - - 702,180,891.61 702,180,891.61 - - 702,180,891.61 - Baan Prucksasiri 1 291,031,025.11 291,031,025.11 - - 291,031,025.11 291,031,025.11 - - - Baan Prucksasiri 2 243,127,197.88 243,127,197.88 - - 243,127,197.88 243,127,197.88 - - - Ruam Rudee 649,756,462.76 649,756,462.76 - - 649,756,462.76 649,756,462.76 - - - Baan Sansaran 1,463,115,213.73 1,441,027,353.47 22,087,860.26 - 1,463,115,213.73 1,441,027,353.47 22,087,860.26 - - Saladaeng 349,322,951.91 349,322,951.91 - - 349,322,951.91 349,322,951.91 - - - Baan Ploenchit 443,289,629.31 434,392,861.68 8,896,767.63 - - - - - - Baan See Tis 220,420,771.22 - - 220,420,771.22 - - - - - Baan Pliyasathorn 1,145,360,638.08 1,056,974,073.11 88,386,564.97 - - - - - Project development cost - Century 77,384,921.02 - - 77,384,921.02 77,384,921.02 - - 77,384,921.02 Leasehold cost and project development cost - Baan Sansiri 569,090,910.00 61,339,140.00 - 507,751,770.00 - - - - - Lung Suan 540,925,773.90 - - 540,925,773.90 - - - - Total 6,695,006,386.53 4,526,971,065.92 119,371,192.86 2,048,664,127.75 3,775,918,664.02 2,974,264,991.13 22,087,860.26 779,565,812.63 The Century Project is located on land of a subsidiary for which the parent company has received permission and agreement to develop the project on that land. Land lease agreement of Baan Sansiri Project is for a period of 30 years, starting November 1, 1993. Lung Suan Project is on leased land which is for a period of 1 year from March 1, 1994 with option to continue the lease monthly until a notice of cancellation of the lease is served by the landlord, or by the leasee with 15 days prior notice of the cancellation. Interest expenses in connection with the acquisition of leasehold right, land development and project development, as cost of project, occuring during the year ended December 31, 1998 are Baht 155,625,864.17 and Baht 58,669,130.15 in the consolidated and in the Company's financial statements, respectively. Since the fourth quarter of 1998, certain development projects of the Company were stopped or suspended. Therefore interest expenses related to loan for project development are no longer capitalized on these projects. Land for the project of parent company and subsidiaries is pledged to secure loans from several financial institutions. In January 1998, the Company had a sales promotion to customers by offering discounts of 50 % for reservations with specific terms and conditions. The said cost of property development is stated at the lower of cost or net realizable value. Parent Company On November 29,1999 the Company entered into an agreement with a company to purchase and sell land and construction, entitled Terrace Court Project, in the amount of Baht 55 million and the involving expenses with a real estate in the amount not over Baht 5 million.The installments are as follows: 1) Deposit for property purchase, amounting to Baht 1 million, was paid to agent, covering the first repayment on December 1,1999. 2) Payment, amounting to Baht 54 million on the register date of acceptance of ownership transfer, was divided into 2 portions: 2.1) The Company agreed to pay Baht 44 million less retention for payment of property tax and land tax. 2.2) The Company agreed to pay Baht 10 million to agent, covering the second repayment, which was agreed by the Company and the seller. The Company registered acceptance of ownership transfer of the above land and construction on December 24, 1999. On December 20, 1999, the Company has entered into an agreement to purchase and sell land and construction, in amount of Baht 181,699,500 with a company. The Company paid the deposit of Baht 20 million for land on the agreement date. Regarding the remaining payment for land and construction, the Company and seller made a memorandum of understanding to amend the agreement to sell the land and construction dated January 24, 2000 that the seller to give discount, as a return of Baht 2.19 million. Therefore, the remaining amount required paying to the seller on the register date of acceptance of ownership transfer of land and construction is Baht 159.51 million. The Company registered acceptance of ownership transfer on January 25, 2000 in accordance with the agreement to purchase and sell land and construction, in amount of Baht 181,699,500. So, in transferring the ownership of land and construction, the Company is required to transfer back partial plots of land covering six title deeds and construction, which are a part of the land allocation project approved to return to the seller when the Company has obtained a permit of land allocation, concerning the parts which were transferred back. In addition, on the same date (December 20, 1999), the Company has entered into an agreement to purchase and sell land and construction with the same company, worth Baht 26,959,850. On the register date of acceptance of ownership transfer of land and construction, the Company and seller made a memorandum of understanding to amend the agreement to sell and purchase land and construction dated January 24,2000 that the seller to give discount, as a return of Baht 0.81 million. Therefore, the remaining amount,which the company required to pay to the seller on the register date of acceptance of ownership transfer of land and construction, is Baht 26.15 million. The Company registered acceptance of ownership transfer on January 25,2000 in accordance with the agreement to purchase and sell land and construction, worth Baht 26,959,850. NOTE 10 - LAND UNDER DEVELOPMENT REVALUATION In 1997, the Company revalued land under development using fair market value method by an independent appraiser approved by the Stock Exchange Committee. Assets revaluation was as follows: Original Revalued Revaluation Book value amount surplus Baht Baht Baht Land under development: Sanpinyo Limited 110,406,452.36 650,167,115.00 539,760,662.64 Prakarn Limited 33,373,390.00 134,832,885.00 101,459,495.00 143,779,842.36 785,000,000.00 641,220,157.64 The additional value from assets revaluation was recorded as surplus on land revaluation presented in the balance sheets. In 1999, the parent company and subsidiaries revalued land under development using market approach method by an independent appraiser approved by the Stock Exchange Committee. Assets revaluation is as follows: Original Revalued Revaluation Book value amount surplus Baht Baht Baht Land under development: Sansiri Public Company Limited 8,197,823.44 37,548,000.00 29,350,176.56 Less Assets transferred in settlement of debts (See note 15 to financial statements) (8,197,823.44) (37,548,000.00) (29,350,176.56) Total - - - Land under development: Sanpinyo Limited 110,406,452.36 609,600,000.00 499,193,547.64 Prakarn Limited 33,373,390.00 126,420,000.00 93,046,610.00 Total 143,779,842.36 736,020,000.00 592,240,157.64 In 1999, a subsidiary company revalued land under development, which resulted in a decrease in value, as follows: OriginalRevalued Book value amount Original Revalued Loss on appraisal Book value amount value Baht Baht Baht Land under development of Chanachai Limited 108,483,464.44 107,231,300.00 1,252,164.44 Less Assets transferred in settlement of debts (See note 15 to financial statements) (69,951,266.19) (69,875,800.00) (75,466.19) Total 38,532,198.25 37,355,500.00 1,176,698.25 Total land under development-net 182,312,040.61 773,375,500.00 NOTE 11 - INVESTMENTS IN RELATED PARTIES -NET Investments in related parties - net as at December 31, 1999 and 1998 consisted of: (Amounts : Thousand Baht) Investments Deficit on Paid up Capital Percentage of Cost Method Equity Method investments Subsidiaries 1999 1998 shareholding 1999 1998 1999 1998 1999 1998 Sanpinyo Limited 11,000 11,000 99% 14,490 14,490 456,362 - - (35,763) Chanachai Limited 90,000 90,000 99% 101,524 101,524 - - (626,232) (93,558) Jainad Limited 30,000 30,000 99% 51,950 51,950 - - (347,465) (313,281) Prakarn Limited 1,000 1,000 99% 1,000 1,000 75,353 - - (16,891) Sansiri Property Plus Limited 10,000 3,000 100% 10,000 3,000 9,785 1,957 - - Total investments in subsidiaries 178,964 171,964 541,500 1,957 (973,697) (459,493) Associated companies Cathay Asset Management Co., Ltd. 25,000 - 20% 6,000 - 6,400 - - - Starwood Thailand Property Fund 1 701,194 - 25% 178,930 - 171,177 - - - Related company Regency One Co., Ltd 200,000 200,000 10% 20,000 20,000 - - - - Less Allowance for diminution in value (20,000) (20,000) - - - - Total investments in related company - net - - - - - - Total investments in related parties - net 363,894 171,964 719,077 1,957 (973,697) (459,493) The Company has relationship through shareholdings and directors with its real estate related parties except for Cathay Asset Management Co., Ltd. which operates in financial consultant business. On February 16, 1999, Plus Property Management Limited registered the change of its company name to Sansiri Property Plus Limited. At the Board of Directors' Meeting held on June 22,1999, it was resolved to invest in the Starwood Thailand Property Fund I. On September 8,1999, the Company invested in the mentioned fund for 25% of total fund in the amount of Baht 178.93 million. The Fund was established with the objective to purchase or lease the real estate, invest in the right of claim arising from the business operation of the financial institutions under which the real estate is pledged as collateral, or manage the benefits arising from the real estate or such right of claim. At present, the Fund has outbid the FRA's auction of asset group No. 12, which has current unpaid principal balance of Baht 2,244 million at the price of Baht 680.63 million. NOTE 12 - LEASEHOLD BUILDING AND EQUIPMENT - NET Leasehold building and equipment - net as at December 31, 1999 are as follows: (Amounts in thousand Baht) Consolidated Cost Accumulated Depreciation Allowance for devaluation on leasehold Book value At beginning Acquisition Disposal At end At beginning Depreciation Disposal At end At beginning Addition Deduction At beginning At beginning At end of year of year of year of year of year of year of year ofyear Leasehold 548,569 - - 548,569 83,809 18,285 - 102,094 - (29,999) - (29,999) 464,760 416,476 Building and improvement 2,508 - - 2,508 1,360 84 - 1,444 - - - - 1,148 1,064 Fixtures and equipment 40,003 5,648 (201) 45,450 24,576 6,537 (185) 30,928 - - - - 15,427 14,522 Vehicles 8,857 - (863) 7,994 6,415 1,084 (703) 6,796 - - - - 2,443 1,198 (more)