F/S OF EGCOMP 1998

10.2 Investments in subsidiary, associated and other companies in the consolidated financial statements are as follows : Type of business Associated companies AMATA EGCO Power Company Limited Electricity generating Bangchak Power Company Limited Electricity generating AM ESCO Company Limited Providing services to (formerly named as CM ESCO) power plants ESCO Wood Company Limited Providing maintenance services to power plants Consolidation 1998 Paid-up share Cost Equity capital % of method method (Baht'000) holding (Baht'000) (Baht'000) Associated companies AMATA EGCO Power Company Limited 1,350,000 29.70 400,950 466,909 Bangchak Power Company Limited 40,000 30.00 12,000 11,675 AM ESCO Company Limited (formerly named as CM ESCO) 2,000 50.00 1,000 16,752 ESCO Wood Company Limited 20,000 45.00 9,000 427 Total investment in associated companies 422,950 495,763 Other companies Thai LNG Power Company Limited - 10.00 37,499 PMI International Company Limited - 10.00 300 Investment in Open-End Fixed Income Fund 507,000 Total investments in other companies 544,799 Consolidation 1997 Paid-up share Cost Equity capital % of method method (Baht'000) holding (Baht'000) (Baht'000) Associated companies AMATA EGCO Power Company Limited 572,500 29.70 209,404 - Bangchak Power Company Limited 40,000 30.00 12,000 - AM ESCO Company Limited (formerly named as CM ESCO) 2,000 50.00 1,000 - ESCO Wood Company Limited 20,000 45.00 9,000 - Total investment in associated companies 231,404 - Other companies Thai LNG Power Company Limited - 10.00 37,499 PMI International Company Limited - 10.00 300 Investment in Open-End Fixed Income Fund - Total investments in other companies 37,799 The financial statements for the year 1998 include shares of net profits totalling Baht 80.2 million from the four associates ( 1997 : nil ). The results for the year 1998 of these associates are based on unaudited financial statements. Electricity Generating Public Company Limited and its subsidiaries Page 19 Notes to the financial statements and consolidated financial statements - December 31, 1998 continued Property, plant and equipment, net 11 The company only 1998 1997 (Baht) (Baht) Property, plant and equipment, at cost Land 284,429,029 284,429,029 Power plants - - Buildings and structures - - Operating and maintenance equipment 227,000 227,000 Transmission system - - Office equipment, furniture and computers 47,734,342 43,783,747 Vehicles 15,578,728 7,213,307 Construction in progress 534,433,876 173,692,026 Machinery in transit - - 882,402,975 509,345,109 Less: Accumulated depreciation (33,337,914) (22,042,543) 849,065,061 487,302,566 Consolidation 1998 1997 (Baht) (Baht) Property, plant and equipment, at cost Land 1,478,325,798 1,478,325,798 Power plants 29,007,664,061 28,984,682,625 Buildings and structures 2,643,197,391 2,621,022,983 Operating and maintenance equipment 118,288,331 97,335,923 Transmission system 44,745,029 7,002,029 Office equipment, furniture and computers 103,316,937 91,968,606 Vehicles 41,810,198 29,844,777 Construction in progress 569,515,173 201,744,704 Machinery in transit - 28,980,060 34,006,862,918 33,540,907,505 Less: Accumulated depreciation (5,373,484,156) (3,734,647,492) 28,633,378,762 29,806,260,013 Depreciation for the year of Baht 11,299,899 has been charged to the statement of income (1997 : Baht 8,556,310) and Baht 1,640,717,606 to the consolidated statement of income (1997 : Baht 1,622,312,792). Land, buildings and equipment of power plants which are specified in the Master Agreement are mortgaged as collateral for long-term loans and debentures (see notes 13 and 14). Electricity Generating Public Company Limited and its subsidiaries Page 20 Notes to the financial statements and consolidated financial statements - December 31, 1998 continued Other assets, net 12. Other assets mainly represent management and advisory fee relating to the fund raising of subsidiaries. The balance is net of accumulated amortisation amounting to Baht 386.13 million and 271.99 million in the consolidated balance sheets as at December 31, 1998 and 1997, respectively. Amortisation for the year amounting to Baht 114,140,542 (1997 : Baht 117,201,941) has been charged to the consolidated statement of income. Long-term loans 13. The long-term loans are loans in US Dollar and Thai Baht of the two subsidiaries as follows : The company only 1998 1997 (Baht) (Baht) Long-term loans in US Dollar - - Long-term loans in Thai Baht - - - - Less: Current portion of long-term loans - - - - Consolidation 1998 1997 (Baht) (Baht) Long-term loans in US Dollar 16,591,398,000 21,750,214,440 Long-term loans in Thai Baht 2,769,000,000 3,017,500,000 19,360,398,000 24,767,714,440 Less: Current portion of long-term loans (1,200,557,900) (1,266,775,240) 18,159,840,100 23,500,939,200 The long-term loans of Rayong Electricity Generating Company Limited are the loans under the Master Agreement, Credit Agreement and Institutional Loan Agreement, each dated November 30, 1994 and the long-term loans of Khanom Electricity Generating Company Limited are the loans under the Master Agreement and Bank Credit Agreement, each dated June 3, 1996. Electricity Generating Public Company Limited and its subsidiaries Page 21 Notes to the financial statements and consolidated financial statements - December 31, 1998 continued The loan information of the two subsidiaries is summarised as follows : Total Outstanding balance Term of Facilities as at Dec. 31, 1998 repayment Interest rate (million) (million) (years) (% per annum) Loans of Rayong Electricity Generating Company Limited USD 141 98.7 10 LIBOR plus a certain margin USD 141 141 15 8.85% Baht 3,550 2,769 12 MLR minus a certain margin Loans of Khanom Electricity Generating Company Limited USD 100 90 12 LIBOR plus a certain margin USD 165 148.5 12 LIBOR plus a certain margin Baht 225 (not yet be 15 MLR minus a certain margin drawdown) Rayong Electricity Generating Company Limited entered into the interest rate swap agreement to convert a floating interest rate based on LIBOR plus a certain margin to fixed interest rates of 8.12% and 8.22% per annum for 2 Tranches of loan amount of US Dollars 141 million. The agreement is effective from December 7, 1994 to December 7, 2004. On May 9, 1996, Khanom Electricity Generating Company Limited entered into the interest rate swap agreement to convert a floating interest rate based on LIBOR plus a certain margin to a fixed interest rate of 8.0275% per annum for the loan amounted of US Dollars 165 million. In addition, there is a currency and interest rate swap agreement to convert a loan amounted of US Dollars 100 million with a floating interest rate to Thai Baht currency at a fixed interest rate of 11% per annum. As a result, the balance of this loan as at December 31, 1998, amounting to US Dollars 90 million, equals to Baht 2,270 million. These agreements are effective from June 19, 1996 to June 14, 2008. Electricity Generating Public Company Limited and its subsidiaries Page 22 Notes to the financial statements and consolidated financial statements - December 31, 1998 continued The Master Agreements of both subsidiaries have certain clauses which stated that cash reserves are to be provided from the proceeds from sales of electricity for repayment of principal and interest due within one year and other conditions as described in note 7 to the financial statements. Also, a reserve for exchange risk shall be provided as described in the same note. In addition, the PPAs, the Major Maintenance Agreements, insurance policies, other related agreements with the lenders, land, building and equipment of power plants as specified in the agreements have been assigned as collateral. Debentures 14. The debentures are debentures in Thai Baht of the two subsidiaries as follows : The company only Consolidation 1998 1997 1998 1997 (Baht) (Baht) (Baht) (Baht) Debentures - - 10,102,339,783 10,519,099,143 Less: Current portion of debentures - - (973,695,000) (310,130,420) - - 9,128,644,783 10,208,968,723 The debentures of Rayong Electricity Generating Company Limited are under the Master Agreement and Debenture Holder Representative Appointment Agreement No. 1 and No. 2 each dated November 30, 1994. The debentures of Khanom Electricity Generating Company Limited are under the Master Agreement and the Statements of the Terms and Conditions Regarding the Rights and Obligations of the Issuer and the Debentureholders which were dated June 3, 1996 and June 19, 1996 respectively. (More)