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11. Intanin Chiangmai 12.50 3,406,362.50 12. Koraj Wattana 12.50 1,527,575.00 13. Sun & San 12.50 1,498,637.50 14. Intersouth 12.50 4,285,612.50 15. Pak Numpo Wattana 14.00 1,037,442.00 16. Maharachapreuk 12.00 415,584.00 17. Eastern I.C.C. 12.50 2,938,062.50 Total investments 19,888,631.00 Less allowance for loss from impairment of investments 2,941,792.50 Total general investments 16,946,838.50 Total investments-Others 17,846,838.50 * The companies do not require fully pay for their sales share values. Investment in debt securities The company invests Baht 20.0 million in five year period debenture with gradually matured condition which redeem on November 15, 2004. The interest rate will be, fix at 9.5% per year for the first through third year, and MLR of Siam Commercial Bank Public Company Limited. 6. Earnings Appropriation The company's earnings appropriation shall be recorded upon approval from the shareholders meeting. 7. Provident Fund The company has set up a provident fund under the Provident Fund Act B.E. 2530 (1987) on February 1, 1993. Contributions are made by the company and the employees as stipulated. The company has appointed a Provident Fund Manager to manage the said fund according to the ministerial regulations. 8. Earnings per Share Earnings per share is calculated by dividing net income by the number of shares outstanding. 9. Debentures The company issued debentures as the resolution of the 25th ordinary shareholders meeting on 26 April, 1999. The issue of named certificate, unsecured and unsubordinated debenture will be 300,000 units-par value Baht 1,000 per unit, issued on 9 August 1999 - 3 years period debenture. The interest will be MLR + 0.25, paid every 6 months-on 9 February and 9 August of the year. The first interest payment will be on 9 February 2000. The debenture will be redeemed in full at par maturity date with last interest payment. The regulation for maintaining financial ratio during the term of debenture. 1. To maintain not more than Baht 850 million in aggregate of loans, guarantee in subsidiaries, affiliated and related companies and investment in cost method. 2. To maintain debt to equity ratio shall not exceed 0.9 times. 3. To maintain interest coverage ratio shall not under 4 times. 4. Not to create any pledge or mortgage or make any obligations over assets of the company throughout the life of debenture. 10. Commitments and Contingencies As at June 30, 2000 the company has the following commitments. - The company has entered into 11 trademark contracts with respective owners concerning the manufacturing and distribution of garments and leather products under their trademarks. Both parties have mutual obligations to fulfil under these contracts. The trademark fees are 0.3-7.5%. - The unused amount of letter of credit for importing raw materials totalled Baht 108.51 million. - There are contingent obligations guarantees issued to guarantee customs duties at Baht 9.48 million and the use of electricity at Baht 3.95 million. - The company has signed a 15-year land lease to build a warehouse for raw materials in Chong Nonthri, Yannawa, Bangkok, starting on March 30, 1992 until November 29, 2007. The company paid Baht 300,000.00 for the transfer of leasehold rights plus monthly lease fees. 11. Related Party Transactions 11.1 Related transactions of the Company and its subsidiaries are as follows. (Unit : Baht 1,000) Consolidated The company only Accounts receivable and post-date check 127,393 140,597 Accounts payable 9,627 16,288 Loan receivable 69,000 127,800 Accrued expenses 5,634 5,669 Other liabilities 2 2 Accrued income 28,616 29,126 Sales income 325,948 344,518 Other income 27,445 31,089 Purchase of goods and raw materials 19,612 40,445 Profit from disposal of fixed assets 69 73 Other expenses 19,305 25,031 11.2 The company has been authorized by the 26th shareholders ordinary general meeting on April 24, 2000 to : 11.2.1 Provide loans to related companies to the amount of Baht 250 million. As at the quarter end, total loans to 2 related companies amount to Baht 127.8 million. 11.2.2 Provide guarantees to banks and other financial institutions for related companies liabilities is not more than Baht 250.0 million. As at the quarter end, the company has a total of Baht 120.49 million and US$ 96,200 and Yen 16.84 million contingent liabilities from various guarantees to 10 related companies. 12. Segment Information For 6 months (Unit : Baht 1,000) 2000 1999 Bangkok Kabinburi Lamphun Total Bangkok Kabinburi Lamphun Total Revenues 575,561 92,295 104,295 772,151 416,353 90,396 77,018 583,767 Loss from impairment of assets 1,058 - - 1,058 - - - - Operating profit 82,452 18,696 33,068 134,216 33,006 21,510 21,604 76,119 Profit before realization from profit (loss) sharing of the susidiaries and Associated companies 62,547 18,696 33,068 114,312 28,8 06 21,510 21,604 71,919 Profit (loss) shareing of the subsidiares and associated (336) - - (336) (6,033) - - (6,033) Net profit 62,211 18,696 33,068 113,976 22,773 21,510 21,604 65,886 Property, plant and Equipment, net 396,925 382,749 Other assets 6,153 29,633 Total assets 1,525,304 1,445,747 Note The company has changed the classification for source of revenue to be source of production. The company re-arranged the data of the 6 months period as of June 30, 1999 for comparing the data of the 6 months period as of June 30, 2000. 13. Promotional Privileges The company was granted privileges from the BOI according to the Investment Promotion Act B.E. 2520 (1977) Type of promoted business Type 3.10 Type 3.6 Type 3.6 Date of receiving promoted certificate Dec. 23, 1993 Aug. 31, 1994 Apr. 11, 1995 Date of receiving revenue Nov. 10, 1994 Feb. 14, 1995 Jun. 14, 1996 Promotional privilege 1. Tax exempt since the first date of receiving revenue. 8 years 8 years 8 years 2. Tax exempt for dividends as mentioned in article 1. 8 years 8 years 8 years 3. The deduction of 50% of normal corporate tax since The expiry date of promotional period. 5 years 5 years 5 years 4. The double amount of expenses for public utility. 10 years 10 years 10 years Beside the privilege, the company has to practice along the BOI regulation. 14. Business transaction with the related company The company has 62 domestic and export customers which are separated according to the age of accounts receivable. (Unit : Baht 1,000) Consolidated The company only As of Jun. 30, 2000 As of Jun. 30, 2000 Within credit term 182,874 182,129 Over due 1 - 3 months 6,178 6,178 Over due 3 - 6 months 1,210 1,210 Over due 6 - 12 months 47 47 Over due more than 12 months 612 612 Total 190,921 190,176 The company recorded Baht 0.69 million of allowance for doubtful account. 15. Presentation The quarterly financial statements as of June 30, 1999 had been re-arranged the categories in accordance with the quarterly financial statement as of June 30, 2000. According to the regulation of SET number Kor Jor 18/1999 dated September 2, 1999 the company had changed the categories of financial statement comparison which concerning the preparation of quarterly financial statements of the listed companies in accordance with Thai accounting standards chapter 41st - Interim Financial Reporting.