(ADD3) F/S Q3/98

The Company has a policy to charge interest on related party loans based on actual interest cost incurred during the period. Consolidated as at September 30, 1998 Issued Percentage of Cost Equity Company's name Type of Business Country Relation shares capital shares holding method method Dividend Baht'000 Baht'000 Baht'000 Baht'000 Associated companies HTR Corporation Limited Real estate Thailand Shareholders 500,000 47.6 329,990 276,363 - development DKK Sino-Thai Engineering Telecommunications Thailand Shareholders 8,000 35 2,800 29,080 2,800 Company Limited and transmission lines ACS Asia Limited Light steel fabrication Thailand Shareholders 10,000 50 5,000 8,986 - ACS Asia (1996) Company Manufacturing cable Thailand Shareholders 15,000 50 7,500 15,966 - Limited support system Thai Maintenance Contracting Maintenance service Thailand Shareholders 12,315 30 2,340 5,049 - Company Limited for industrial plants MMR Asia Company Limited Electrical and Thailand Shareholders 30,000 30 11,999 3,000 - instrumentation contractor 367,629 338,444 2,800 Less Allowance for decline in investment (8,986) - Total Investments in Associated Companies 329,458 2,800 Issued Percentage of Cost Equity Company's name Type of Business Country Relation shares capital shares holding method method Dividend Baht'000 Baht'000 Baht'000 Baht'000 Other related companies STP&I Public Company Steel fabrication, Thailand Shareholders 250,000 10 75,750 - - Limited steel construction, industrial boilers and pressure vessels manufacturing Abico Land Company Limited Thailand Shareholders 200,000 15 30,000 - - Nithipat Leasing Company Thailand Shareholders 800,000 15 129,568 - - Limited National Insurance Company Thailand Shareholders 300,000 10 - - - Limited National Life Insurance Thailand Shareholders 500,000 10 - - - Company Limited Nakornthai Stripment Public Thailand Shareholders 8,600,000 1.85 254,000 - - Company Limited Peroxy Thai Company Limited Thailand Shareholders 793,000 2.73 21,650 - - Others 44,064 Total 555,032 Less Allowance for decline in investment (276,019) Total Investment in Other Relate Companies Related Companies 279,013 Total Investments 608,471 Consolidated as at September 30, 1997 Issued Percentage of Cost Equity Company's name Type of Business Country Relation shares capital shares holding method method Dividend Baht'000 Baht'000 Baht'000 Baht'000 Associated companies HTR Corporation Limited Real estate Thailand Shareholders 500,000 47.6 329,990 309,730 - development CBI/ST Company Limited Manufacturing and Thailand Shareholders 100,000 35 9,082 11,766 14,006 erection of spherical & cylindrical tank STP&I Public Company Steel fabrication, Thailand Shareholders 250,000 24 59,999 196,605 - Limited steel construction, industrial boilers and pressure vessels Manufacturing DKK Sino-Thai Engineering Telecommunications Thailand Shareholders 8,000 35 2,800 25,537 2,800 Company Limited And transmission lines ACS Asia Limited Light steel fabrication Thailand Shareholders 10,000 50 5,000 8,228 - ACS Asia (1996) Company Manufacturing cable Thailand Shareholders 15,000 50 7,500 7,500 - Limited support system Issued Percentage of Cost Equity Company's name Type of Business Country Relation shares capital shares holding method method Dividend Baht'000 Baht'000 Baht'000 Baht'000 Associated companies MMR Asia Company Limited Electrical and Thailand Shareholders 30,000 30 11,999 11,999 - instrumentation contractor Thai Maintenance Contracting Maintenance service Thailand Shareholders 12,315 30 2,340 2,340 - Company Limited for industrial plants Total Investments in Associated Companies 428,710 573,705 16,806 Other related companies Abico Land Company Limited Thailand Shareholders 200,000 15 30,000 - - Nithipat Leasing Company Thailand Shareholders 800,000 15 129,568 - - Limited National Insurance Company Thailand Shareholders 300,000 10 30,000 - - Limited National Life Insurance Thailand Shareholders 500,000 10 50,000 Company Limited Nakornthai Stripmill Public Thailand Shareholders 5,600,000 3.01 270,000 - - Company Limited Peroxy Thai Company Limited Thailand Shareholders 793,000 2.73 21,650 - - Others Thailand Shareholders 119,565 - - 650,783 Less Allowance for decline in Investment (31,067) Total Investments in Related Companies 619,716 Total Investments 1,193,421 Loans to Amount in thousand Baht Policy for charging 1998 1997 interest on loans Associated companies MMR Asia Company Limited 20,363 14,500 17% Thai Maintenance Contracting Company Limited 13,000 - 18% ACS Asia (1996) Company Limited 5,094 5,094 14.75% Total 38,457 19,594 Joint Venture Philipp Holzmann (Thai) /U.T.M. Engineering / Sino-Thai Joint Venture 89,454 - 15% Amount in thousand Baht Policy for charging 1998 1997 interest on loans Other related companies Others 4,240 4,240 13-18% Less Allowance for doubtful accounts (90) - 4,150 4,240 Total Loans 132,061 23,834 The Company has a policy to charge interest on related party loans based on actual interest cost incurred during the period. The Company recorded deficit in shareholders' equity of subsidiary and joint venture amounting to approximately Baht 80.08 million, which was shown under other liabilities. At September 30, 1997, investment in non-current marketable securities are stated at cost which is excess of the aggregate market value of Baht 203.75 million. The company did not record unrealized holding loss on such investments in the shareholders' equity. The Company recorded investments in associated companies by using the equity method in the financial statements for the three-month period and nine-month period ended September 30, 1998 on the basis of the financial information obtained from the management which had not been audited or reviewed by the auditors in accordance with standards established by the Thai Institute of Certified Accountants and Auditors of Thailand for the recording of investments in associated companies. The Company recorded investments in subsidiaries and associated companies by using the equity method in the financial statements for the three-month period and nine-month period ended September 30, 1997 on the basis of the financial information obtained from the management which had not been audited or reviewed by the auditors in accordance with standards established by the Thai Institute of Certified Accountants and Auditors of Thailand for the recording of investments in subsidiaries and associated companies. In 1996 and 1995, an associated company increased its registered share capital of which the whole amounts were issued to the new shareholders, resulting in the increase of the Company's equity in that company in the amount of Baht 43.12 million and Baht 25.71 million respectively. These excess of book value over cost of investment are shown as non-current liabilities in the financial statements. In 1998, the Company sold out the investment in associated company and recorded the whole exceeding in amount of book value over cost of investment as revenue in the financial statements. 5.2 Due from related companies are summarized as follows: (Amounts in thousand Baht) CONSOLIDATED THE COMPANY 1998 1997 1998 1997 Subsidiaries Sino-Thai Construction Services Company Limited - - 4,644 1,349 Sino-Thai Resources Development Public Company Limited - - 18 - Total - - 4,662 1,349 Associated companies STP&I Public Company Limited - 34,108 - 32,606 CBI/ST Company Limited - 155 - 155 ACS Asia Limited 12 12 12 12 ACS Asia (1996) Company Limited 1,811 1,060 1,811 1,060 MMR Asia Company Limited 6,962 1,766 6,474 1,693 Thai Maintenance Contracting Company Limited 715 55,795 715 55,795 9,500 92,896 9,012 91,321 Joint ventures Philipp Holzmann (Thai) /U.T.M. Engineering / Sino-Thai Joint Venture 39,956 1,999 39,956 1,999 Zueblin - W&F - Stecon joint venture 4,796 5,486 4,796 5,486 The Joint Venture of Tomen Enterprise (Bangkok) Company Limited/Sino-Thai Engineering and Construction Public Company Limited/ Totems Company Limited 587 - 587 - 45,339 7,485 45,339 7,485 Other related companies 2,547 3,045 2,547 3,045 Total 57,386 103,426 61,560 103,200 5.3 Due to related companies are summarized as follows: (Amounts in thousand Baht) CONSOLIDATED THE COMPANY 1998 1997 1998 1997 Subsidiaries Sino-Thai Construction Services Company Limited - - 1,301 900 Sino-Thai Resources Development Public Company Limited - - 8 5,000 Total - - 1,309 5,900 (Amounts in thousand Baht) CONSOLIDATED THE COMPANY 1998 1997 1998 1997 Associated companies STP&I Public Company Limited - 1,820 - 41 HTR Corporation Limited 217 1,021 217 1,021 ACS Asia Limited 96 76 96 76 MMR Asia Company Limited 409 409 409 409 Thai Maintenance Contracting Company Limited - 26,540 - 26,540 Total 722 29,866 722 28,087 Other related companies 3,790 3,790 3,790 3,790 Total 4,512 33,656 5,821 37,777 5.4 Due from related companies are overdue according to the following aging analysis: (Amounts in thousand Baht) CONSOLIDATED THE COMPANY 1998 1997 1998 1997 5 months to 12 months 3,034 56,415 2,546 56,393 Over 12 months 9,570 - 2,438 - Total 12,604 56,415 4,984 56,393 5.5 The company significant transactions with its related companies for the nine-month periods ended September 30, are as follows: (Amounts in thousand Baht) CONSOLIDATED THE COMPANY 1998 1997 1998 1997 Revenues from construction - 115,526 - 115,526 Revenues from services, rent and others - 40 1,207 1,536 Interest income - - 7,097 5,409 Equipment purchase - - 1,562 3,124 Concrete service and others - - 1,299 748 NOTE 6 - CASH AND CASH EQUIVALENTS Cash and cash equivalents as at September 30, 1998 are summarized as follows: CONSOLIDATED THE COMPANY (Amounts in thousand Baht) Cash in hand and at banks 642,773 613,663 Less Bank overdrafts (220,547) (160,533) Cash and cash equivalents - net 422,226 453,130 NOTE 7 - ACCOUNTS RECEIVABLE Accounts receivable at September 30 are summarized as follows: (Amounts in thousand Baht) CONSOLIDATED THE COMPANY 1998 1997 1998 1997 Accounts receivable 977,803 1,610,531 891,364 1,421,084 Unbilled works on construction contracts 499,543 583,669 499,543 583,669 Total 1,477,346 2,194,200 1,390,907 2,004,753 Less Allowance for doubtful accounts (199,042) (39,114) (187,262) (35,385) Accounts receivable - net 1,278,304 2,155,086 1,203,645 1,969,368 Accounts receivable are overdue according to the following aging analysis : (Amounts in thousand Baht) CONSOLIDATED THE COMPANY 1998 1997 1998 1997 5 months to 12 months 224,858 122,528 181,733 106,094 over 12 months 229,922 132,422 204,962 125,083 Total 454,780 254,950 386,695 231,177 NOTE 8 - LOSS ON CHANGE IN CURRENCY EXCHANGE SYSTEM TO A MANAGEMENT FLOAT SYSTEM At September 30, 1997, the parent company and subsidiary have shown the effects of the change in the currency exchange system to a Managed Float System amounting to Baht 945 million and Baht 93 million respectively in the statements of income. 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