FINANCIAL STATEMENTS FOR THE YEAR ENDED 1999

29 กุมภาพันธ์ 2543
Land improvements 2,082,495 38,638 2,121,133 Buildings 173,512,551 11,092,767 184,605,318 Leasehold improvements 503,182 979,070 1,482,252 Machinery and equipment 201,314,688 1,144,528 202,459,216 Furniture and office equipment 126,216,560 7,787,550 50,049 133,954,061 Vehicles 240,154,621 10,953,120 2,893,644 248,214,097 Containers - net 89,077,793 4,521,629 21,567,971 72,031,451 Promotion materials 66,405,779 7,852,000 15,483 74,242,296 Construction in progress 26,655,465 15,555,213 27,063,046 15,147,632 Total 1,073,083,775 59,924,515 51,590,193 1,081,418,097 Accumulated Depreciation Land improvements ( 979,172) 173,684 ( 1,152,856) Buildings ( 43,239,091) 8,063,090 ( 51,302,181) Leasehold improvements ( 503,182) 51,636 ( 554,818) Machinery and equipment (103,705,928) 8,450,348 (112,156,276) Furniture and office equipment ( 85,532,832) 37,338 15,029,926 (100,525,420) Vehicles (185,524,420) 2,825,953 24,227,686 (206,926,153) Promotion materials ( 40,902,437) - 9,698,968 ( 50,601,405) Total (460,387,062) 2,863,291 65,695,338 (523,219,109) Property, Plant and Equipment - Net 612,696,713 62,787,806 117,285,531 558,198,988 Depreciation and amortization charges included in costs and expenses for the years amounted to approximately Baht 65.7 million and 16.7 million in 1999 and Baht 67.6 million and 21.6 million in 1998, respectively. A portion of the Company's land, buildings, machinery and equipment were mortgaged/pledged as collateral for overdraft line, letters of guarantee and long- term loan and letters of guarantee as discussed in Notes 8, 9 and 12. 8. BANK OVERDRAFT AND LOANS FROM FINANCIAL INSTITUTIONS In Baht 1999 1998 Bank overdraft 19,871,720 10,456,953 Short-term loans from banks 45,000,000 50,000,000 Total 64,871,720 60,456,953 As at December 31, 1999 and 1998, the Company had an overdraft line with a local bank amounted to Baht 30 million which bears interest at rates ranging from 9.75% to 14.50% per annum in 1999 and from 12.75% to 16.25% per annum in 1998. The Company had also short-term loan lines from a local bank and a local branch of foreign bank totalling to Baht 70 million and 50 million in 1999 and 1998, respectively, which bear interest at rates ranging from 5.85% to 6.25% per annum in 1999 and from 8.25% to 9.7% per annum in 1998. These are collateralized by the mortgage/pledge of a portion of the Company's land, buildings, machinery and equipment as discussed in Note 7. - 6 - 9. LONG-TERM LOAN In Baht 1999 1998 Long-term loan 7,274,582 7,997,337 Less portion due within one year (1,495,000) ( 799,728) Long-term loan-net 5,779,582 7,197,609 In 1997, the Company entered into a long-term loan agreement with a local bank amounting to Baht 7,997,337 which bears interest at rates ranging from 4% to 6% per annum. This loan is repayable monthly commencing from July 1999, and is collateralized by a portion of the Company's land as discussed in Note 7. 10. APPROPRIATION OF RETAINED EARNINGS At the Board of Directors' meeting held on March 26, 1998, the Board of Directors approved the payment of dividends out of earnings during July 1, 1997 to December 31, 1997 totalling approximately Baht 24.9 million (Baht 1.50 per share for 16,601,500 shares) and approved the appropriation of general reserve amounting to Baht 3,000,000. Payment of dividends (including the interim dividends at Baht 1 per share for 16,601,500 shares approved by the Board of Directors during 1997) and the appropriation of general reserve were approved by the shareholders at the ordinary meeting held on April 30, 1998. At the Board of Directors' meeting held on September 2, 1998, the Board of Directors approved the payment of interim dividends out of earnings during January 1, 1998 to June 30, 1998 totalling approximately Baht 24.9 million (Baht 1.50 per share for 16,601,500 shares). At the Board of Directors' meeting held on March 25, 1999, the Board of Directors approved the payment of interim dividends out of earnings during July 1, 1998 to December 31, 1998 totalling approximately Baht 16.6 million (Baht 1 per share for 16,601,500 shares) and approved the appropriation of general reserve amounting to Baht 3,000,000. In addition, the Board has approved the appropriation of legal reserve at 5% of 1998 net income amounting to Baht 3,177,628. Payment of dividends and the appropriation of general and legal reserve were approved by the shareholders at the ordinary meeting held on April 30, 1999. The Company subseguently paid the dividends on May 17, 1999. - 7 - At the Board of Directors' meeting held on December 17, 1999, the Board of Directors approved the payment of interim dividends out of earnings during January 1, 1999 to September 30, 1999 totalling approximately Baht 16.6 million (Baht 1 per share for 16,601,500 shares). Under the provisions of the Limited Public Company Act B.E. 2535, the Company is required to appropriate at least 5% of its annual net income after deduction of the deficit brought forward (if any) as reserve fund until the reserve reaches 10% of authorized share capital. The Company has appropriated the reserve fund at 5% of 1999 net income amounting to Baht 1,750,784. The reserve fund is not available for dividend distributions. 11. AGREEMENTS As at December 31, 1999, the Company had: a. Long-term land lease agreement for a period of 30 years which can be extended for another period of 30 years. The Company is committed to pay the rental at Baht 60,000 per annum. b. Long-term lease agreements with various lessors covering vehicles and computers for a period of 36 months ending on various dates up to August 2001.The Company has to pay the rental totalling approximately Baht 2.4 million per annum. c. Lease agreements for posting advertising billboards, for which the ompany is committed to pay the rental of approximately Baht 1.2 million per annum. 12. CONTINGENT LIABILITIES As at December 31, 1999, the Company : a. Was contingently liable for letters of guarantee issued by a local bank in favour of certain Government agencies and state enterprises totalling approximately Baht 32.5 million. These letters of guarantee are collateralized by the mortgage/pledge of a portion of the Company's land, buildings, machinery and equipment as discussed in Note 7. b. The result on the tax audit by the Revenue Department regarding the refund of the corporate tax for the year 1996 was reported to the Company. The Company recorded the tax and penalty assessed by the Revenue Department amounting to approximiately Baht 4.3 million in the 1999 financial statements. However, the Company is in the process of appealing for the waiving of penalty of approximately Baht 1.9 million (not yet recorded in the account) of which the Company believes that the outcome will be in the Company's favor. - 8 - 13. RECLASSIFICATION OF ACCOUNTS Certain accounts in the 1998 financial statements have been reclassified to conform with the 1999 financial statement presentation. 14. CURRENT ECONOMIC CRISIS The economic and liquidity crisis which began in mid 1997 in Thailand and other countries in the Asia Pacific Region brought about such adverse effects as significant depreciation in the value of the Thai Baht, higher domestic interest rates, reduced opportunity for refinancing or refunding of maturing debts, and a general reduction in spending throughout the region. These conditions have had an adverse effect on the operations of the company. Recently, however, many of these economic difficulties have begun to moderate as evidenced by the increasing trade surplus, an increase in foreign exchange reserves, renewed interest by foreign investors, economic growth, lower inflation and interest rates and a stabilized foreign exchange rate. Nevertheless, it would be premature to be complacent about the economic recovery given, among other factors, the remaining residual effects of the economic crisis may have a continuing impact on the economy. The accompanying financial statements reflect management's current assessment of the impact to date of the economic situation on the financial position of the Company. Actual results could differ from management's current assessments. 15. SEGMENT FINANCIAL INFORMATION The Company does not present the segment financial information in the financial statements since the Company is engaged in only the manufacturing and distribution of soft drink. 16. COMPUTER REMEDY PLAN FOR YEAR 2000 COMPLIANCE ("UNAUDITED") As at December 31,1999, the Company has completed the computer remedy plan to solve the Year 2000 issue, but the Company still faces risks that other companies with whom the Company does business may be unsuccessful in their computer remedy projects within the time limit. However, the Company expects that the impact, if any, will not be significant to the Company's operations in the future.