15 กุมภาพันธ์ 2542
FINANCIAL STATEMENTS QUARTER 1 (AS OF DECEMBERB 31,1998)
PHATRA LEASING PUBLIC COMPANY LIMITED
INTERIM FINANCIAL STATEMENTS
FOR THE THREE-MONTH PERIODS ENDED DECEMBER 31, 1998 AND 1997
AND
REPORT OF CERTIFIED PUBLIC ACCOUNTANT
EXPRESSED IN
Thai Baht
REPORT OF CERTIFIED PUBLIC ACCOUNTANT
To the Board of Directors of Phatra Leasing Public Company Limited
I have made a review of the balance sheets of Phatra Leasing Public
Company Limited as at December 31, 1998 and 1997, the related statements of income,
changes in shareholders equity and retained earnings for the three-month periods then
ended, 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, I do not express such an opinion.
Based on my review, I am not aware of any material modifications that
should be made to the accompanying interim financial statements for them to be in
conformity with generally accepted accounting principles.
PRASIT MUSIKABHANTU
C.P.A. (THAILAND)
Registration No. 2675
Bangkok
February 2, 1999
UNAUDITED
REVIEWED
PHATRA LEASING PUBLIC COMPANY LIMITED
BALANCE SHEETS
DECEMBER 31, 1998 AND 1997
A S S E T S
In Thousand Baht
1998 1997
CURRENT ASSETS (Note 3)
Cash on hand and in banks 72,252 19,669
Short-term investment in promissory notes 41,366 10,000
Leasing receivables under operating
lease contracts - net (Note 4) 27,217 36,087
Receivables under finance lease contracts - net
(Note 4) 199,329 521,975
Other current assets
Prepaid expenses 26,837 28,535
Receivable from Revenue Department 3,933 5,442
Advance payment for customers 4,521 8,602
Others 3,660 10,898
Total Current Assets 379,115 641,208
INVESTMENTS IN SHARES - At Cost (Note 3)
Associated company 245 245
Other company 5,000 5,000
Total Investments in Shares 5,245 5,245
PROPERTY AND EQUIPMENT - Net 1,290,808 1,751,435
PROPERTY FORECLOSED
Land 40,431 17,341
Others - net 19,456 31,780
Total Property Foreclosed 59,887 49,121
OTHER ASSETS
Deferred income tax - net 198,631 169,808
Other receivable - net 6,028 49,826
Others 13,448 6,558
Total Other Assets 218,107 226,192
TOTAL ASSETS 1,953,162 2,673,201
See accompanying Notes to Interim Financial Statements.
UNAUDITED
REVIEWED
PHATRA LEASING PUBLIC COMPANY LIMITED
BALANCE SHEETS
DECEMBER 31, 1998 and 1997
LIABILITIES AND SHAREHOLDERS EQUITY
In Thousand Baht
1998 1997
CURRENT LIABILITIES (Note 3)
Bank overdrafts and loans from
financial institutions 160,191 509,939
Accounts payable - trade 5,953 42,180
Current portion of long-term loans 451,531 820,900
Short-term loans from and payables
to related companies 363,829 355,004
Other current liabilities
Rental income received in advance 8,276 12,150
Accrued interest expense 8,276 41,634
Income tax payable 6,811 -
Others 8,097 9,616
Total Current Liabilities 1,012,964 1,791,423
LONG-TERM LOANS FROM RELATED
COMPANIES - Net (Note 3) 291,841 100,000
ADVANCE RECEIVED FROM LESSEES FOR
EXERCISING PURCHASE OPTION (Note 3) 73,738 114,351
Total Liabilities 1,378,543 2,005,774
SHAREHOLDERS EQUITY
Share capital - common share; Baht 10 par value
Authorized, issued and fully paid-up
- 30,000,000 shares 300,000 300,000
Premium on share capital 156,000 156,000
Retained earnings
Appropriated for reserve fund 9,216 9,216
Unappropriated 109,403 202,211
Total Shareholders Equity 574,619 667,427
TOTAL LIABILITIES AND SHAREHOLDERS
EQUITY 1,953,162 2,673,201
See accompanying Notes to Interim Financial Statements.
UNAUDITED
REVIEWED
PHATRA LEASING PUBLIC COMPANY LIMITED
STATEMENTS OF INCOME
FOR THE THREE-MONTH PERIODS ENDED DECEMBER 31, 1998 AND 1997
In Thousand Baht
1998 1997
REVENUES (Note 3)
Rental income from operating lease contracts 193,188 209,100
(Note 1)
Income from finance lease contracts (Note 1) 7,224 16,844
Other income
Gain on sales of assets 370 4,333
Others 4,710 4,248
Total Revenues 205,492 234,525
COSTS AND EXPENSES (Note 3)
Direct rental costs 133,882 156,159
General and administrative expenses 15,136 48,384
Interest expense 45,771 61,561
Directors remuneration 66 72
Total Costs and Expenses 194,855 266,176
INCOME (LOSS) BEFORE INCOME TAX AND
CUMULATIVE EFFECT OF ACCOUNTING CHANGE 10,637 (31,651)
INCOME TAX (3,206) -
INCOME (LOSS) BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE 7,431 (31,651)
CUMULATIVE EFFECT OF ACCOUNTING CHANGE
(Note 1) - (38,000)
NET INCOME (LOSS) 7,431 (69,651)
Earnings (Loss) per Share (Baht)
Income (loss) before cumulative effect of
accounting change 0.25 (1.05)
Cumulative effect of accounting change - (1.27)
Net income (loss) 0.25 (2.32)
See accompanying Notes to Interim Financial Statements.
UNAUDITED
REVIEWED
PHATRA LEASING PUBLIC COMPANY LIMITED
STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY
FOR THE THREE-MONTH PERIODS ENDED DECEMBER 31, 1998 AND 1997
In Thousand Baht
1998 1997
Common Share Capital
Balance, beginning of period 300,000 300,000
Addition - -
Balance, end of period 300,000 300,000
Premium on Share Capital
Balance, beginning of period 156,000 156,000
Addition - -
Balance, end of period 156,000 156,000
Retained Earnings
Appropriated
Reserve Fund
Balance, beginning of period 9,216 9,216
Addition - -
Balance, end of period 9,216 9,216
Unappropriated Retained Earnings
Balance, beginning of period 101,972 271,862
Addition (deduction) - net income (loss) 7,431 (69,651)
Balance, end of period 109,403 202,211
TOTAL SHAREHOLDERS EQUITY 574,619 667,427
See accompanying Notes to Interim Financial Statements.
UNAUDITED
REVIEWED
PHATRA LEASING PUBLIC COMPANY LIMITED
STATEMENTS OF RETAINED EARNINGS
FOR THE THREE-MONTH PERIODS ENDED DECEMBER 31, 1998 AND 1997
In Thousand Baht
1998 1997
UNAPPROPRIATED RETAINED EARNINGS:
Brought forward from previous period 101,972 271,862
Net income (loss) for the period 7,431 (69,651)
Total Unappropriated Retained Earnings 109,403 202,211
APPROPRIATED RETAINED EARNINGS
Reserve fund 9,216 9,216
TOTAL RETAINED EARNINGS 118,619 211,427
See accompanying Notes to Interim Financial Statements.
PHATRA LEASING PUBLIC COMPANY LIMITED
NOTES TO INTERIM FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
1. ACCOUNTING CHANGE
During the first to third quarters of the fiscal year ended September 30,
1998, the Company changed the method of the recognition of rental income from
operating lease contracts and income from finance lease contracts for lessees who
had not paid rentals for more than six months, which was previously recognized
as income on the accrual basis over the term of leases to be recognized on the
accrual basis only for six months effective from October 1, 1997 on the grounds of
conservatism of revenue recognition. However, in the fourth quarter of 1998,
management had reviewed the policy on the income recognition and decided to
change the method on the recognition of rental income from operating lease
contracts and income from finance lease contracts to be recognized on the accrual
basis only for three months. As a result of this change, revenues for the three-
month period ended December 31, 1998 reduced by approximately Baht 2.9
million (Baht 0.1 per share). The cumulative effect of this change up to September
30, 1998 amounted to approximately Baht 38.0 million. The financial statements
for the three-month period ended December 31, 1997, which are presented
herewith for comparative purposes, have been reflected the
latest change in the fourth quarter of 1998.
2. EARNINGS (LOSS) PER SHARE
Earnings (loss) per share is determined by dividing the income (loss) by the
weighted-average number of shares outstanding during the periods.
3. TRANSACTIONS WITH RELATED COMPANIES
The Company has certain transactions with its related companies. These
companies are related through common shareholdings and/or management. The
effects of these transactions are reflected in the accompanying interim financial
statements.
Investment in shares of an associated company which is held for long-term
purpose is valued at cost. The Company has not adjusted the investment in
shares of the associated company to the equity method since the effect is not
material.
- 2 -
Significant account balances with the related companies, arising from
transactions in the normal course of business, as of December 31, 1998 and 1997
and for the three-month periods then ended were as follows:
In Thousand
Baht
1998 1997
Cash in banks 71,547 19,532
Short - term investment in promissory notes 41,366 10,000
Leasing receivables under
operating lease contracts 907 1,376
Receivables under finance lease contracts - net 6,004 14,104
Prepaid expenses 24,286 19,640
Other current assets 259 1,416
Investment in associated company 245 245
Bank overdrafts and loans from financial
institutions 156,546 509,675
Current portion of long-term loans 451,531 -
Short-term loans from and payables to related
companies 363,829 355,004
Rental income received in advance 150 378
Accrued interest expense 8,276 394
Other current liabilities 732 174
Long-term loans from related companies 291,841 100,000
Advances received from lessees
for exercising purchase option 1,926 1,469
Rental income from operating lease contracts 47,941 32,631
Income from finance lease contracts 224 388
General and administrative expenses 199 699
Interest expense 45,812 29,482
- 3 -
4. LEASING RECEIVABLES UNDER OPERATING LEASE CONTRACTS
AND RECEIVABLES UNDER FINANCE LEASE CONTRACTS
The 100 leasing receivables under operating lease contracts and the 74
receivables under finance lease contracts which may be uncollectible as at
December 31, 1998, categorized by aging schedules, are as follows:
In Thousand Baht
Operating lease Finance lease Total
Over 3 months to 6 months 5,798 13,361 19,159
Over 6 months to 12 months 17,524 43,385 60,909
Over 12 months 12,132 38,018 50,150
Total 35,454 94,764 130,218
The Company provided allowance for doubtful accounts of leasing
receivables under operating lease contracts and receivables under finance lease
contracts amounted to approximately Baht 36.1 million and Baht 84.3 million, respectively.
5. CONTINGENT LIABILITY
As at December 31, 1998, the Company was contingently liable for letter
of guarantee issued by a local bank amounting to approximately Baht 0.3 million.
6. RECLASSIFICATION OF ACCOUNTS
Certain accounts in the 1997 interim financial statements were reclassified
to conform with the 1998 interim financial statements presentation.
7. THE COMPUTER REMEDIATION PLAN FOR
THE YEAR 2000
As at December 31, 1998, the Company had installed the computer system
in connection with the storage and data processing in order to deal with the effect
of Year 2000 issues for the most part except for certain functions relating to the
transmatching and data back up file which are being upgraded. The estimated
cost of the said upgrade amounted to approximately Baht 2.0 million, which will
be recorded in the period incurred. It is expected that the computer remediation
plan is completed on time. 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 Companys operations.