SET Announcements

In the consolidated and the Company's financial statements for the nine-month period ended September 30, 2000, investments by equity method in an associated company of Baht 11.72 million, which were calculated based on the financial statements reviewed by other auditor and to which the share of loss was attributable in the amount of Baht 0.03 million, and the Company recognized unrealized gain on available securities for sale amounting to Baht 5.95 million. Investments in mutual fund in the amount of Baht 62.74 million was calculated based on the financial statements for the nine-month period ended September 30, 2000, prepared by the management and not reviewed by an auditor and to which the share of profit was attributable in the amount of Baht 54.06 million. As at September 30, 2000, the auditor could not provide any assurance to the financial statements of two subsidiaries, which are Chanachai Limited and Jainad Limited, for the nine-month period ended September 30, 2000 regarding the uncertainty of the continuation business as going concern. The consolidated financial statements for the year ended December 31, 1999 consisted of the financial statements of the parent company, Sansiri Public Company Limited, and the 99% subsidiary companies held by the parent company which are Chanachai Limited, Sanpinyo Limited, Prakarn Limited, Jainad Limited and Sansiri Property Plus Limited (Formerly : Plus Property Management Limited) In the consolidated and the Company's financial statements for the year ended December 31, 1999, the investments in two associated companies at cost value of Baht 6 million and Baht 178.93 million, which were calculated by using the equity method and to which the share of profit (loss) was attributable in the amount of Baht 0.49 million, according to the financial statements audited by other auditor and Baht (7.75) million, was based on the financial statements for the nine-month period ended September 30, 1999 prepared by the management and not reviewed by an auditor, respectively. As at December 31, 1999, the financial statements of two subsidiary companies, which are Chanachai Limited and Jainad Limited, were examined by an auditor with disclaimed opinion due to the uncertainty of the continuation business as going concern. All significant inter company transactions are eliminated in preparing the consolidated financial statements. NOTE 4 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF MEASUREMENT Revenues and Expenses Recognition Revenues and expenses are recognized on an accrual basis. Revenues and costs of construction in progress are recognized on the percentage of completion method which is based on the actual development cost compared to the total estimated development costs, not including cost of land. Deferred leasehold rights is recognized as revenue over the period of lease agreement. Leasehold and development costs are recognized as expenses over the period of lease agreement. Interest income is recognized on the accrual basis, except for overdue interest income expected to be uncollectable which is recognized as it is received. Dividend income is recorded on the date it accrued. Gain (loss) on sale of securities is recognized on the date of sale. Investments in Securities Trading investments in securities are stated at fair value. Other investments are stated at cost. Unrealized gain or loss arising on the revaluation of securities is reflected in the statement of income. Cost of sales on securities is determined by moving average method. Allowance for Doubtful Accounts Allowance for doubtful accounts is an estimate of those amounts which are expected to be uncollectable. Cost of Property Development Cost of property development is stated at the lower of cost , net of allowance of diminution in value or net realizable value. The cost consists of acquisition cost of land and leasehold rights, development expenses and direct expenses of project including interest expenses during the construction period, which occurred from loans for land, leasehold rights and development projects. In 1999 the parent company and subsidiaries revalued project development by independent appraisers approved by the Stock Exchange Committee. As at September 30, 2000, provision for loss on diminution in value of property development was Baht 587.98 million and Baht 8.36 million in the consolidated and the Company's financial statements, respectively. As at December 31, 1999 provision for loss on diminution in value of property development was Baht 513.51 million and Baht 88.05 million in the consolidated and the Company's financial statements, respectively. Investments in Related Parties Investments in subsidiary and associated companies are accounted for by the equity method. Investment in related company is stated at cost, net of allowance of diminution in value. Land under Development for Sales and Rent Land for development is stated at cost including cost of land and related expenses and interest expenses. In 1999, land under development of parent company and subsidiary companies was revalued. In 1998, two subsidiary companies entered into the lease agreements for a period of two years which would expire in November, 2000. (See note 10.2 to financial statements). Leasehold, Building and Equipment Leasehold is stated at cost, net of allowance of diminution in value. Building and equipment are stated at cost. Leasehold right is amortized according to the period of leasehold agreement. Depreciation is computed by the straight-line method over the estimated useful lives of assets of 5-20 years. Interest Capitalization Interest expenses related to financing construction and project expenses have been capitalized as project costs up to the completion of construction or until the project development is suspended. Deferred Charges Deferred charges are presented in other assets which consists of deferred interest on hire - purchase of vehicles which are amortized by the straight-line method according to the period of contracts. Business taxes and promotion expenses are amortized by the percentage of completion method. In 1999, deferred charges are amortized as expenses in the total amount of Baht 5.4 million and Baht 1.8 million in the consolidated and the Company' s financial statements, respectively. Foreign Currency Transactions Foreign currency transactions during the year are translated into Baht at the rates of exchange ruling on the transaction dates. Foreign currency balances at the balance sheet date are translated into Baht at the exchange rates ruling on that date unless such assets or liabilities are covered by forward exchange contract for which, in that case, the forward exchange contract is used. Exchange gains and losses are included in determining income and expenses. Income Tax The Company calculated income tax in accordance with the Revenue Code. Accounting Estimation Preparation of financial statements in conformity with generally accepted accounting principles in Thailand requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure of contingent assets and liabilities. Actual results may differ from those estimates. Basic Earnings (Loss) per Share Basic earnings (loss) per share is computed by dividing the net profit (loss) by the weighted average number of fully paid shares outstanding at the end of the periods. Number of shares September 30,2000 September 30,1999 Weighted average number of ordinary shares used in calculating basic earnings (loss) per share 268,290,741 146,569,869 NOTE 5 - CASH AND CASH EQUIVALENTS Cash and cash equivalents consisted of : (Amounts: Thousand Baht) Consolidated September 30, December 31, 2000 1999 1999 1998 Cash and cash at banks 141,262 135,270 135,703 69,384 Short term investments - fixed deposits 144,307 213,726 12,200 7,860 - promissory notes - 286,000 427,182 - Less Bank overdrafts (3,108) (16,053) (14,269) (95,623) Short term investments - fixed deposits with commitment (33,083) (4,011) (4,274) (7,858) Cash and cash equivalents 249,378 614,932 556,542 (26,237) The Company September 30, December 31, 2000 1999 1999 1998 Cash and cash at banks 124,959 131,594 128,900 17,935 Short term investments - fixed deposits 133,520 202,427 2,427 1,970 - promissory notes - 276,000 427,182 - Less Bank overdrafts (2,176) (15,506) (13,906) (61,272) Short term investments - fixed deposits with commitment (30,475) (2,426) (2,425) (1,969) Cash and cash equivalents 225,828 592,089 542,178 (43,336) Fixed deposits with commitment are pledged to secure letters of guarantees issued by banks. NOTE 6 - ACCOUNTS, NOTE RECEIVABLES AND UNBILLED COMPLETED WORK - NET (Amounts: Thousand Baht) Consolidated The Company September 30, 2000 December 31, 1999 September 30, 2000 December 31, 1999 The sales value which has been under the agreements 2,665,261 2,665,261 1,155,366 1,155,366 Total project sales 2,676,799 2,676,799 1,166,904 1,166,904 The ratio of sales value which has been under the agreements and total project sales 99.57% 99.57% 99.01% 99.01% Unbilled Completed Work and Unearned Income: Consolidated The Company September 30, 2000 December 31, 1999 September 30, 2000 December 31, 1999 Installments due 2,665,553 2,665,553 1,171,590 1,171,590 Less : cash received (2,665,021) (2,662,089) (1,171,590) (1,171,590) Installment account receivables 532 3,464 - - Accounts, note receivables and unbilled completed work - net, consisted of: Consolidated The Company September 30, 2000 December 31, 1999 September 30, 2000 December 31, 1999 Installments due 2,665,553 2,665,553 1,171,590 1,171,590 Less sales recognized to date (2,678,165) (2,678,165) (1,171,590) (1,171,590) Add revenues from contract cancellation 12,612 12,612 - - - - - - Installment accounts receivable 532 3,464 - - Unbilled completed work - 308 - - Service receivables 11,712 9,461 24,770 24,834 Total accounts, notes receivable and unbilled completed work 12,244 13,233 24,770 24,834 Less Allowance for doubtful accounts (2,452) (7,058) (20,369) (2,105) Total Accounts and Notes Receivable and Unbilled Completed Work - Net 9,792 6,175 4,401 22,729 Accounts, note receivables and unbilled completed work - net classified by aging receivable are as follows: (Amounts: Thousand Baht) Consolidated The Company September 30, December 31, September 30, December 31, 2000 1999 2000 1999 Unbilled completed work - 308 - - Over 1 - 3 months 7,769 5,719 4,025 3,260 Over 3 - 6 months 1,438 467 72 - Over 6 - 12 months 399 278 62 - Over 12 months 2,638 6,461 20,611 21,574 Less Allowance for doubtful accounts (2,452) (7,058) (20,369) (2,105) Net 9,792 6,175 4,401 22,729 NOTE 7 - LOAN TO RELATED PARTIES - NET Loan to related parties - net consisted of: (Amounts: Thousand Baht) Consolidated The Company September 30, 2000 December 31, 1999 September 30, 2000 December 31, 1999 Subsidiary companies - Chanachai Limited - - - 129,649 - Sanpinyo Limited - - - 141,012 - Prakarn Limited - - - 51,263 - Jainad Limited - - 3,000 232,948 Related company - Regency One Co., Ltd. 5,000 5,000 - - Total 5,000 5,000 3,000 554,872 Less Allowance for doubtful accounts (5,000) (5,000) - (250,000) Net - - 3,000 304,872 The Company charges interest to subsidiaries at the rate of MLR percent per annum. Loan to related company represents that a subsidiary, which is Chanachai Co., Ltd., has given loan to related company with interest at the rate MLR per annum. As at September 30, 2000, the Company had loans to related parties and interest receivable classified by the aging receivable as follows: (Amounts: Thousand Baht) Consolidated The Company Principal Interest receivable Principal Interest receivable At call - - 3,000 - Over 1 - 3 months - - - - Over 3 - 6 months - - - - Over 6 -12 months - - - - Over 12 months 5,000 333 - - Less Allowance for doubtful accounts (5,000) (333) - - Net - - 3,000 - As at December 31, 1999 , the Company had loans to related parties and interest receivable classified by the aging receivable as follows: (Amounts: Thousand Baht) Consolidated The Company Principal Interest receivable Principal Interest receivable At call - - 554,872 - Over 1 - 3 months - - - - Over 3 - 6 months - - - - Over 6 -12 months - - - 1,556 Over 12 months 5,000 333 - 12,081 Less Allowance for doubtful accounts (5,000) (333) (250,000) - Net - - 304,872 13,637 NOTE 8 - INVESTMENTS IN RELATED PARTIES - NET Investments in related parties - net as at September 30, 2000 and December 31, 1999 consisted of: (Amounts : Thousand Baht) Investments Deficit on Paid up Capital Percentage of Cost Method Equity Method Investments Subsidiaries 2000 1999 Shareholding 2000 1999 2000 1999 2000 1999 Nature of Business Sanpinyo Limited 11,000 11,000 99% 14,490 14,490 220,920 456,362 - - Property Lease Chanachai Limited 90,000 90,000 99% 101,524 101,524 - - (606,522) (626,232) Property Development Jainad Limited 30,000 30,000 99% 51,950 51,950 - - (50,185) (347,465) Property Development Prakarn Limited 1,000 1,000 99% 1,000 1,000 22,997 75,353 - - Property Lease Sansiri Property Plus Limited 10,000 10,000 99% 10,000 10,000 11,060 9,785 - - Office and Condominium Management Point Asia Access Co., Ltd. 10,000 - 55% 5,500 - 4,086 - - - Internet Services and Telecommunication Sansiri Home Network Co., Ltd. 1,000 - 100% 1,000 - 108 - - - Internet Services Total investments in subsidiaries 185,464 178,964 259,171 541,500 (656,707) (973,697) Associated companies Cathay Asset Management Co., Ltd. 25,000 25,000 20% 6,000 6,000 11,717 6,400 - - Financial and Investment Advisory Services Starwood Thailand Property Fund 1 604,421 701,194 25% 150,862 178,930 62,738 171,177 - - Property Fund managed Assets of FinancialInstitutions Total investments in associated companies 156,862 184,930 74,455 177,577 - - 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 342,326 363,894 333,626 719,077 (656,707) (973,697) In 2000, the Company received dividend income from an associated company. (See note 2 to financial statements) - The Company has relationship through shareholdings and/or same directors. - The Starwood Thailand Property Fund 1 has reduced the units of fund as follows: Capital Reduction Date Units: Million unit Capital Reduction (Million Baht) Received Date February 22, 2000 2.42 33.59 April 21, 2000 April 26, 2000 0.33 3.49 June 2, 2000 July 24, 2000 5.33 50.00 August 18, 2000 August 24, 2000 2.67 25.00 October 9, 2000 - At the Ordinary Shareholders' Meeting held on February 29, 2000 it was resolved that the Company and Loxley Information Service Limited establish Sansiri Dot Com Limited with initial share capital of Baht 10 million and 55% of shareholding will be held by the Company. The said company registered one million share capital at Baht 10 par value on April 26, 2000. - On June 15, 2000, Sansiri Dot Com Limited registered change of its company name to Point Asia Access Co., Ltd. - The Company established Sansiri Home Network Co., Ltd. with a registered capital of Baht 1 million and 100% of the share capital is owned by the Company. This company was registered on July 14, 2000 with 100,000 shares at Baht 10 par value. NOTE 9 - CONSTRUCTION PAYABLES (more)