29 พฤศจิกายน 2543
ANNUAL FINANCIAL STATEMENTS (AS OF SEPTEMBER 30,2000)
PHATRA LEASING PUBLIC COMPANY LIMITED
FINANCIAL STATEMENTS
FOR THE YEARS ENDED SEPTEMBER 30, 2000 AND 1999
AND REPORT OF CERTIFIED PUBLIC ACCOUNTANT
EXPRESSED IN
Thai Baht
REPORT OF CERTIFIED PUBLIC ACCOUNTANT
To the Shareholders of Phatra Leasing Public Company Limited
I have audited the balance sheet of Phatra Leasing Public Company Limited as of September 30, 2000,
and the related statements of income, changes in shareholders' equity, retained earnings and cash flows for
the year then ended. These financial statements are the responsibility of the Company's management as to
their correctness and completeness of the presentation. My responsibility is to express an opinion on these
financial statements based on my audit. The financial statements of Phatra Leasing Public Company
Limited for the year ended September 30, 1999, which are presented for comparative purposes, were
audited by Mr. Prasit Musikabhantu, who at that time the auditor in my firm and in whose report dated
November 16, 1999, expressing an unqualified opinion on those financial statements.
I conducted my audit in accordance with generally accepted auditing standards. Those standards require
that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. I believe that my audit provides a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of Phatra Leasing Public Company Limited as of September 30, 2000, and the results of
its operations and its cash flows for the year then ended, in conformity with generally accepted accounting
principles.
The operations of the Company have been affected, and may continue to be affected for the foreseeable
future, by the adverse economic conditions in Thailand and in the Asia Pacific region, including the volatile
foreign exchange rates, slowdown in economic growth and the general deterioration of the economies of
countries in the Asia Pacific region. Further, it is not possible to determine the future effect that a
continuation of the economic crisis may have on the Company's liquidity and earnings. As of
September 30, 2000 and 1999, deferred income tax account included future tax benefit arising from loss
carryforward amounting to Baht 8 million. Management strongly believes that the future tax benefit
arising from loss carryforward can be utilized in the succeeding fiscal years. However, there are
uncertainties that the above economic conditions may affect future operations and the adequacy of taxable
income available against which such deferred income tax can be utilized. The accompanying financial
statements do not include any adjustment that might result from these uncertainties.
VICHIEN THAMTRAKUL
C.P.A. (THAILAND)
Registration No. 3183
Bangkok
November 1, 2000
BALANCE SHEETS
SEPTEMBER 30, 2000 AND 1999
A S S E T S
In Baht
Note 2000 1999
CURRENT ASSETS
Cash on hand and in banks 4 6,634,745 41,844,353
Leasing receivables under operating lease contracts 4,5 47,662,352 59,761,592
Less allowance for doubtful accounts ( 36,085,963) ( 36,085,963)
Leasing receivables under operating lease contracts - net 11,576,389 23,675,629
Receivables under finance lease contracts - net
of unearned interest income 4,6 184,422,503 199,663,917
Less allowance for doubtful accounts ( 84,262,867) ( 84,262,867)
Receivables under finance lease contracts - net 100,159,636 115,401,050
Other current assets
Prepaid expenses 4 22,819,819 25,995,126
Others 4 13,598,761 12,738,856
Total Current Assets 154,789,350 219,655,014
INVESTMENTS IN SHARES
Associated company 4,7 245,000 245,000
Other company - net of allowance for impairment in value
of investment of Baht 5,000,000 in 2000 and
Baht 3,000,000 in 1999 - 2,000,000
Total Investments in Shares 245,000 2,245,000
PROPERTY AND EQUIPMENT - Net 8 1,322,814,224 1,170,458,304
PROPERTY FORECLOSED - Net 9 54,640,672 49,372,073
OTHER ASSETS
Deferred income tax net 158,623,756 191,145,521
Other receivables - net of allowance for doubtful
accounts of Baht 55,992,404 in 2000
and Baht 57,931,393 in 1999 2,033,061 5,281,440
Others 17,526,507 15,096,055
Total Other Assets 178,183,324 211,523,016
TOTAL ASSETS 1,710,672,570 1,653,253,407
The accompanying notes are an integral part of these financial statements.
BALANCE SHEETS
SEPTEMBER 30, 2000 AND 1999
LIABILITIES AND SHAREHOLDERS' EQUITY
In Baht
Note 2000 1999
CURRENT LIABILITIES
Bank overdrafts and loans from financial institution 4,10 3,220,461 62,948,198
Accounts payable - trade 35,062,805 22,284,683
Current portion of long - term loans 4,13 42,125,409 342,080,218
Short - term loans from and payables to related companies 4,11 4,656,988 293,650,371
Other current liabilities
Rental income received in advance 4 2,971,387 4,259,187
Value added tax payable - 1,372,843
Accrued interest expense 4 10,549,800 2,446,077
Others 4 10,782,916 4,236,886
Total Current Liabilities 109,369,766 733,278,463
DEBENTURES 12 750,000,000 -
LONG-TERM LOANS FROM RELATED
COMPANIES - Net 4,13 119,671,998 236,536,512
ADVANCES RECEIVED FROM LESSEES FOR
EXERCISING PURCHASE OPTION 4,15 75,762,990 68,052,840
Total Liabilities 1,054,804,754 1,037,867,815
SHAREHOLDERS' EQUITY
Share capital common share; Baht 10 par value
Authorized, issued and fully paid-up - 30,000,000 shares 300,000,000 300,000,000
Premium on share capital 156,000,000 156,000,000
Retained earnings
Appropriated for legal reserve 16 15,000,000 11,716,172
Unappropriated 184,867,816 147,669,420
Total Shareholders' Equity 655,867,816 615,385,592
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,710,672,570 1,653,253,407
The accompanying notes are an integral part of these financial statements.
STATEMENTS OF INCOME
FOR THE YEARS ENDED SEPTEMBER 30, 2000 AND 1999
In Baht
Note 2000 1999
REVENUES
Rental income from operating lease contracts 3,4 618,415,462 696,022,397
Income from finance lease contracts 3,4 10,515,417 20,751,518
Other income
Gain on sales of assets held for lease and property
foreclosed 29,740,487 16,470,426
Penalty income from delay payment 3,028,970 8,985,343
Others 6,155,200 7,655,719
Total Revenues 667,855,536 749,885,403
COSTS AND EXPENSES
Direct rental costs 426,638,617 487,753,703
Interest expense 4 71,420,060 125,793,067
General and administrative expenses 4 72,764,730 76,367,205
Directors' remuneration 1,528,140 1,248,000
Total Costs and Expenses 572,351,547 691,161,975
Income Before Income Tax And Tax Benefit
Arising From Loss Carryforward 95,503,989 58,723,428
Income Tax ( 32,521,765) ( 18,525,855)
Income Before Tax Benefit Arising From
Loss Carryforward 62,982,224 40,197,573
Tax Benefit Arising From Loss Carryforward - 8,000,000
NET INCOME 62,982,224 48,197,573
Earnings per Share 2.10 1.61
The accompanying notes are an integral part of these financial statements.
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE YEARS ENDED SEPTEMBER 30, 2000 AND 1999
In Baht
Note 2000 1999
Common Share Capital
Balance, beginning of year 300,000,000 300,000,000
Addition - -
Balance, end of year 300,000,000 300,000,000
Premium on Share Capital
Balance, beginning of year 156,000,000 156,000,000
Addition - -
Balance, end of year 156,000,000 156,000,000
Retained Earnings
Appropriated
Legal Reserve
Balance, beginning of year 11,716,172 9,216,172
Addition 16 3,283,828 2,500,000
Balance, end of year 15,000,000 11,716,172
Unappropriated
Balance, beginning of year 147,669,420 101,971,847
Addition 62,982,224 48,197,573
Dividends 17 ( 22,500,000) -
Legal reserve 16 ( 3,283,828) ( 2,500,000)
Balance, end of year 184,867,816 147,669,420
TOTAL SHAREHOLDERS' EQUITY 655,867,816 615,385,592
The accompanying notes are an integral part of these financial statements.
STATEMENTS OF RETAINED EARNINGS
FOR THE YEARS ENDED SEPTEMBER 30, 2000 AND 1999
In Baht
Note 2000 1999
UNAPPROPRIATED RETAINED EARNINGS
Brought forward from prior year 147,669,420 101,971,847
Less appropriated net income of prior year
Dividends 17 ( 22,500,000) -
Legal reserve 16 ( 3,283,828) ( 2,500,000)
Net income for the year 62,982,224 48,197,573
Total Unappropriated Retained Earnings 184,867,816 147,669,420
APPROPRIATED RETAINED EARNINGS
Legal Reserve 15,000,000 11,716,172
TOTAL RETAINED EARNINGS 199,867,816 159,385,592
The accompanying notes are an integral part of these financial statements.
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED SEPTEMBER 30, 2000 AND 1999
In Baht
2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income 62,982,224 48,197,573
Reconciliations of net income to net cash
provided by (used in) operating activities:
Depreciation and amortization 371,267,458 445,736,320
Reversal of provision for doubtful accounts ( 1,917,557) -
Provision for impairment in value of investment 2,000,000 3,000,000
Provision for decline in value of property foreclosed - 3,800,000
Reversal of provision for loss on decline in value of assets held for lease ( 1,988,615) ( 3,890,901)
Gain on sales of assets held for lease and property foreclosed ( 29,740,487) ( 16,470,426)
Income from operating activities before changes in operating
assets and liabilities 402,603,023 480,372,566
Decrease (increase) in operating assets
Leasing receivables under operating lease contracts 12,099,240 7,354,632
Receivables under finance lease contracts 15,241,414 93,739,786
Prepaid expenses and other current assets 2,315,403 3,565,376
Property foreclosed ( 7,801,789) ( 4,353,712)
Deferred income tax 32,521,765 10,691,660
Other assets ( 3,311,600) ( 10,563,476)
Increase (decrease) in operating liabilities
Accounts payable trade 12,778,122 15,879,385
Income tax payable - ( 6,810,904)
Other current liabilities 11,989,110 ( 13,696,859)
Advances received from lessees for exercising purchase option 7,710,150 ( 11,043,952)
Net Cash Provided by Operating Activities 486,144,838 565,134,502
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in property and equipment (702,645,810) (372,625,030)
Proceeds from sales of assets held for lease and property foreclosed 219,331,807 249,488,228
Net Cash Used in Investing Activities (483,314,003) (123,136,802)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in loans from financial institutions ( 60,000,000) 60,000,000
Decrease in short-term loans from and payables to related companies (288,993,383) (212,161,659)
Increase in debentures 750,000,000 -
Decrease in long-term loans from related companies (416,819,323) (324,830,667)
Payment of dividends ( 22,500,000) -
Net Cash Used in Financing Activities ( 38,312,706) (476,992,326)
NET DECREASE IN CASH AND CASH EQUIVALENTS ( 35,481,871) ( 34,994,626)
Cash and Cash Equivalents at Beginning of Year 38,896,155 73,890,781
CASH AND CASH EQUIVALENTS AT END OF YEAR 3,414,284 38,896,155
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION:
Cash and cash equivalents consist of:
Cash on hand and in banks 6,634,745 41,844,353
Bank overdrafts ( 3,220,461) ( 2,948,198)
Net 3,414,284 38,896,155
Cash paid during the year for:
Interest expense 62,294,723 129,967,013
Income tax 391,328 7,617,409
The accompanying notes are an integral part of these financial statements.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000 AND 1999
1. GENERAL
Phatra Leasing Public Company Limited was incorporated in Thailand on September 28, 1987. The Company had
changed its status to be a public company on January 25, 1994, and subsequently was listed on the Stock
Exchange of Thailand on August 15, 1996. The Company engages in leasing services to corporate entities.
The employees of the Company at the end of the years numbered 60 in 2000 and 54 in 1999. The registered
office of the Company is located at 252/6 29th Floor, Muang Thai Phatra Complex, Rachadaphisek Road,
Huaykwang, Bangkok 10320.
2. BASIS FOR FINANCIAL STATEMENT PRESENTATION
The Company maintains its official accounting records in Thai Baht and prepares its statutory financial statements
in the Thai language in conformity with financial accounting standards in Thailand, which may not conform with
generally accepted accounting principles in other countries. The accompanying financial statements are not
intended to present the financial position and results of operations and cash flows in accordance with accounting
principles and practices generally accepted in countries and jurisdictions other than Thailand. Accordingly, these
financial statements are not designed for those who are not informed about Thai accounting principles and
practices.
For the convenience of the reader, an English translation of financial statements has been prepared from the
statutory Thai language financial statements which are issued for domestic reporting purposes.
3. SIGNIFICANT ACCOUNTING POLICIES
Income Recognition
The Company recognizes the income from long-term leases in conformity with the Accounting Standard No. 29
"Accounting for Long-Term Leases", which is applied to individual contracts since the dates on which the contracts
are entered into.
Rental income from operating lease contracts is recognized based on the term of the lease.
Income from finance lease contracts is recognized over the installment periods based on the sum-of-the-digits
method as the installments fall due irrespective of actual collections.
Income from operating lease contracts and income from finance lease contracts for lessees who have not paid
rentals for more than three months will be recognized as income on accrual basis only for three months.
Allowance for Doubtful Accounts
The Company provides allowance for doubtful accounts equal to the estimated losses that may be incurred in the
collection of all receivables. The estimated losses are based on historical collection experience and a review of the
current status of existing receivables.
NOTES TO FINANCIAL STATEMENTS (Continued)
SEPTEMBER 30, 2000 AND 1999
Investments
Investments in shares of the associated and other companies which are held for long-term purpose are valued at
cost. Allowance for decline in value of investments will be provided in the accounts when the impairment loss is
taken up. The Company has not adjusted the investment in shares of associated company to the equity method
and has not prepared the consolidated financial statements of the Company and associated company since the
effect is not material.
Depreciation
The Company depreciates its property and equipment, except assets held for operating lease and those held for
future lease, by the straight-line method over the estimated useful lives of the assets as follows:
No. of Years
Office condominium 7 and 40
Furniture, fixtures and office equipment 5
Transportation equipment 5
The Company will depreciate assets held for future lease upon starting of the lease.
The Company depreciates assets held for operating lease by the straight-line method on the original cost less
estimated residual value over the term of the lease.
Impairment of Assets
Investments, property and equipment and other assets are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying value of an asset exceeds its recoverable amount. In case that the
carrying value of an asset exceeds its recoverable amount, the Company recognizes the impairment loss in the
statement of income. The reversal of impairment losses recognized in prior years is recorded as other income
when there is an indication that the impairment losses recognized for assets no longer exist or are decreased.
Such a reversal should not exceed the carrying amount that would have been determined (net of amortization or
depreciation) had no impairment loss been recognized for the assets in prior years.
Allowance for Decline in Value of Assets Held for Operating Lease
The Company provides allowance for decline in value of assets held for operating lease for those lessees who had
not paid rental for more than three months equal to the estimated loss from recoverable amount of assets based
on the average market value less estimated discount determined by the management.
Allowance for Decline in Value of Property Foreclosed
The Company provides allowance for decline in value of property foreclosed equal to the estimated loss from
recoverable amount of assets based on the average market value determined by the management.
Foreign Currency Transactions
Transactions in foreign currencies throughout the years are recorded in Baht at the rates prevailing at the date of
transactions. Outstanding assets and liabilities denominated in foreign currencies at the balance sheet dates are
converted into Baht at the prevailing bank rates as of those dates. Gains or losses arising from translation of
transactions in foreign currencies are credited or charged to current operations.
NOTES TO FINANCIAL STATEMENTS (Continued)
SEPTEMBER 30, 2000 AND 1999
Deferred Income Tax
The Company has adopted the practice of recognizing the income tax effects of transactions in the period in which
they enter into the determination of net income, regardless of when they are recognized as income or expenses for
tax purposes. Accordingly, the income taxes applicable to income which is not currently taxable and expenses
which are not currently tax deductible including the future tax benefit arising from loss carryforwards are set up as a
deferred income tax in the balance sheets. This will be allocated to future periods when the expenses provided for
are actually incurred and considered deductible for income tax purposes, or the income is recognized for tax
purposes, or the tax benefit arising from loss carryforwards is utilized.
Deferred income tax on recognition of tax benefit arising from loss carryforwards is taken up only in the case that
the Company can assure beyond a reasonable doubt that the future operating results will generate sufficient
taxable income available against which the deferred income tax arising from loss carryforwards can be utilized in
the succeeding fiscal years. In this connection, it is the Company's practice to determine at every accounting
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