SET Announcements

LOXLEY PUBLIC COMPANY LIMITED AND SUBSIDIARIES SUBSIDIARIES INTERIM FINANCIAL STATEMENTS FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 1998 AND 1997 AND AUDITORS' REPORT EXPRESSED IN Thai Baht The Board of Directors Loxley Public Company Limited We have made a review of the balance sheets of Loxley Public Company Limited and the consolidated balance sheets of Loxley Public Company Limited and subsidiaries as at September 30, 1998 and 1997, the related statements of income, retained earnings (deficit) and changes in shareholders equity (capital deficiency) of Loxley Public Company Limited and the consolidated statements of income,consolidated retained earnings (deficit) and consolidated changes in shareholders equity (capital deficiency) of Loxley Public Company Limited and subsidiaries for the three-month and nine-month periods then ended. The review of such financial statements were made in accordance with standards established by the Institute of Certified Accountants and Auditors of Thailand. A review of interim financial statements consists principally of obtaining an understanding of the system for the preparation of interim financial statements, applying analytical review procedures to financial data, and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an examination in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. We were informed by the Companys management, as discussed in Note 4 to the interim financial statements that in 1997, the Company changed its methods of accounting for income taxes and land revaluation. - 2 - The Company accounts for its investments in subsidiaries and associated companies by the equity method. However, the interim financial statements of certain associated companies which were used as a basis for accounting for the investments under the equity method, had not been reviewed by the auditors. As at September 30, 1998 and 1997, the investments in such associated companies amounted to approximately Baht 633.8 million and Baht 920.8 million which equivalent to 4.9% and 6.1% of total assets in the consolidated balance sheets and 6.1% and 7.9% of total assets of the Company balance sheets, of each period, respectively. The equity in the results of operations of such associated companies which were included in the statements of income for the three-month periods ended September 30, 1998 and 1997, reported net income amounted to approximately Baht 27.9 million and Baht 9 million,which equivalent to 5.6% and 0.5% of consolidated net income (loss) and 5.4% and 0.5% of the Company net income (loss) for each period, respectively and for the nine-month periods ended September 30, 1998 and 1997, reported net income amounted to approximately Baht 117.2 million and Baht 2.7 million, which equivalent to 9.3% and 0.2% of consolidated net income (loss) and 9.1% and 0.2% of the Company net income (loss) for each period, respectively Based on our review, except for the effects on the consolidated interim financial statements and the interim financial statements for the three-month and nine-month periods then ended September 30, 1998 and 1997 of such adjustments, if any, as might have been required had the result of the review of the interim financial statements of the associated companies discussed in the fourth paragraph been known, we are not aware of any other material modifications that should be made to the accompanying interim financial statements and consolidated interim financial statements for them to be in conformity with generally accepted accounting principles. VICHIEN THAMTRAKUL C.P.A. (THAILAND) Registration No. 3183 November 16, 1998 UNAUDITED REVIEWED LOXLEY PUBLIC COMPANY LIMITED AND SUBSIDIARIES BALANCE SHEETS SEPTEMBER 30, 1998 AND 1997 A S S E T S In Thousand Baht Consolidated The Company 1998 1997 1998 1997 CURRENT ASSETS Cash on hand and at banks 358,339 570,240 166,506 417,707 Short-term investments(Note 12)1,329,920 435,364 1,135,379 305,490 Accounts receivable - trade and others - net (Note 6) - Related companies(Note 5) 229,491 362,050 378,974 442,928 - Other companies 1,917,381 2,774,718 1,013,463 1,185,365 Short-term loans to related companies (Notes 5 and 8) 301,617 414,927 319,288 344,644 Inventories - net 1,367,794 1,885,061 972,379 1,426,898 Other current assets (Note 5) 475,302 512,127 340,475 475,290 Total Current Assets 5,979,844 6,954,487 4,326,464 4,598,322 INVESTMENTS AND LOANS Investments in subsidiaries and associated companies - at equity (Notes 5 and 7) 1,192,836 1,467,318 2,326,798 2,491,860 Investments in other related companies-net(Notes 5 and 7) 1,268,824 2,638,090 1,251,254 2,631,920 Investment in joint venture - at cost (Note 12) 39,985 6,100 - - Long-term loans to related companies (Notes 5 and 8) 375,000 403,868 375,000 385,400 Total Investments and Loans 2,876,645 4,515,376 3,953,052 5,509,180 PROPERTY AND EQUIPMENT - Net of accumulated depreciation (Notes 4.2 and 12) 2,053,965 1,965,082 671,995 557,728 OTHER ASSETS Deferred income tax(Note4.1) 1,346,458 856,982 1,344,507 856,982 Others 747,839 760,536 144,146 179,027 Total Other Assets 2,094,297 1,617,518 1,488,653 1,036,009 TOTAL ASSETS 13,004,751 15,052,463 10,440,164 11,701,239 See accompanying Notes to Interim Financial Statements. (With Mr. Vichien Thamtrakuls report dated November 16, 1998) UNAUDITED REVIEWED LOXLEY PUBLIC COMPANY LIMITED AND SUBSIDIARIES BALANCE SHEETS SEPTEMBER 30, 1998 AND 1997 LIABILITIES AND SHAREHOLDERS EQUITY In Thousand Baht Consolidated The Company 1998 1997 1998 1997 CURRENT LIABILITIES Bank overdrafts and loans from financial institutions 1,506,858 2,272,928 717,134 1,009,556 Accounts payable - trade - Related companies (Note 5) 205,420 380,221 117,083 162,987 - Other companies 813,779 872,254 305,706 406,382 Current portion of advance received from customers 399,616 194,753 300,921 144,961 Current portion oflong-term loans 72,776 76,173 - - Short-term loans and advance from directors and employees 11,971 - - - Short-term loans and advance from related companies (Notes 5 and 9) 41,685 10,513 - - Other current liabilities(Note 5)434,547 618,067 299,825 187,424 Total Current Liabilities 3,486,652 4,424,909 1,740,669 1,911,310 LONG-TERM LOANS - Net of Current Portion 309,584 301,498 - - EURO CONVERTIBLE BONDS (Note 10) 8,092,109 7,506,485 8,092,109 7,506,485 ADVANCE RECEIVED FROM CUSTOMERS - Net of Current Portion 219,341 204,106 - - EMPLOYEES PROVIDENT FUND 76,691 104,731 56,285 80,908 OTHER LIABILITIES (Note 10) 1,135,999 699,361 1,125,243 694,556 Total Liabilities 13,320,376 13,241,090 11,014,306 10,193,259 UNAUDITED REVIEWED - 2 - LIABILITIES AND SHAREHOLDERS EQUITY (CAPITAL DEFICIENCY) (CONTINUED) In Thousand Baht Consolidated The Company 1998 1997 1998 1997 MINORITY INTEREST IN SUBSIDIARIES 396,343 356,125 - - SHAREHOLDERS EQUITY (CAPITAL DEFICIENCY) Share capital - common share Baht 10 par value Authorized - 52,000,000 shares (Note 10) Issued and fully paid-up - 40,000,000 shares 400,000 400,000 400,000 400,000 Premium on share capital 1,485,000 1,485,000 1,485,000 1,485,000 Revaluation increment in land (Note 4.2) 205,482 - 205,482 - Retained earnings (Deficit) Appropriated for reserve fund 52,000 52,000 52,000 52,000 Deficit (1,617,954) (481,559) (1,480,128) (429,020) Provision for unrealized loss on decline in value of long-term investments in listed securities (Note 7) (1,130,532) - (1,130,532) - Cumulative translation adjustments (105,964) (193) (105,964) - Shareholders Equity - Net (Capital Deficiency) (711,968) 1,455,248 (574,142) 1,507,980 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY (CAPITAL DEFICIENCY) 13,004,751 15,052,463 10,440,164 11,701,239 See accompanying Notes to Interim Financial Statements. (With Mr. Vichien Thamtrakuls report dated November 16, 1998) UNAUDITED REVIEWED LOXLEY PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF INCOME FOR THE THREE-MONTH PERIODS ENDED SEPTEMBER 30, 1998 AND 1997 In Thousand Baht Consolidated The Company 1998 1997 1998 1997 REVENUES (Note 5) Sales of products and services 1,837,765 2,737,021 641,501 1,252,490 Fees and other income 252,520 285,129 233,581 229,544 Equity in results of operations of subsidiaries-net - - 36,732 (72,495) Equity in results of operations of associated companies-net 69,830 19,381 69,830 19,381 Total Revenues 2,160,115 3,041,531 981,644 1,428,920 COSTS AND EXPENSES (Note 5) Cost of sales and services 1,514,859 2,210,737 638,330 1,123,711 Selling and administrative expenses 371,412 729,522 183,162 355,217 Interest expense 135,925 148,142 83,033 92,698 Directors remuneration 1,645 1,310 495 1,225 Other expenses (Note 10) 171,636 266,056 106,359 266,035 Total Costs and Expenses 2,195,477 3,355,767 1,011,379 1,838,886 Loss Before Gain on Exchange Rates, Income Tax and Minority Interest in Net Income of Subsidiaries (35,362) (314,236) (29,735) (409,966) Gain on exchange rates (Note 11) 671,743 - 669,170 - Income tax (Note 4.1) (128,159) 133,629 (118,117) 132,998 Less Minority Interest in Net Income of Subsidiaries (8,035) (8,545) - - Income (Loss) before extraordinary item 500,187 (189,152) 521,318 (276,968) Extraordinary item (Note 11) Losses arising from the change in foreign currency exchange system - (1,667,638) - (1,597,774) NET INCOME (LOSS) 500,187 (1,856,790) 527,318 (1,874,742) (More)