NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
1. BASIS OF INTERIM FINANCIAL STATEMENT PREPARATION AND PRINCIPLES OF
CONSOLIDATION
The interim financial statements have been prepared in accordance with Accounting Standard No.
41 “Interim Financial Statements”. These financial statements are intended to provide information
additional to that included in the latest annual financial statements. Accordingly, they focus on
new activities, events and circumstances so as not to duplicate information previously reported.
These interim financial statements should therefore be read in conjunction with the last annual
financial statements.
These interim consolidated and company financial statements were approved for issue by the
Company’s Board of Directors on 15 May 2007.
These consolidated financial statements include the financial statements of Natural Park Public
Company Limited and its subsidiaries and have been prepared on the same basis as that applied
for the consolidated financial statements for the year ended 31 December 2006. There have been
no changes in the composition of the subsidiaries during the current period except the proportion
of the Company’s investment in Natural Hotel Siam Co., Ltd. decreased from 75% as at 31
December 2006 to 35% as at 31 March 2007. This was due to the Company’s selling part of its
investment in Natural Hotel Siam Co., Ltd. in March 2007. As a result, Natural Hotel Siam Co.,
Ltd.’s status changed from that of a subsidiary to an associated company. As at 31 March 2007,
this company’s accounts are no longer consolidated in the financial statements but equity
accounted instead.
The percentages of shareholding of the Company in the subsidiaries included in the consolidated
financial statements were as follows:
Percentage of
shareholding
31 March 31 December
2007 2006 Nature of business
Subsidiaries directly held by the Company
Park Opera Company Limited* 100.0 100.0 Theatre
Natural Real Estate Company Limited* 100.0 100.0 General business
Natural Venture Company Limited 100.0 100.0 Investment holding
(Being dissolved)
Natural Park Ville Company Limited 100.0 100.0 Property management
Pacific Assets Public Company Limited# 62.5 63.4 Rental of office building
Richee Property Management Company Limited* 99.9 99.9 General business
Natural Hotel Siam Company Limited* - 75.0 Hotel owner
Natural Project Chao Phraya Company Limited* 100.0 100.0 Property development
(Temporarily dormant)
Page 10
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
Percentage of
shareholding
31 March 31 December
2007 2006 Nature of business
Natural Hotel Sukhumvit Company Limited* 69.2 69.2 Hotel owner
Park Cuisine Company Limited 100.0 100.0 Restaurant
Park Gourmet Company Limited* 100.0 100.0 Restaurant
Natural Hotel Panwa Company Limited 100.0 100.0 Hotel owner
Natural Hotel Chao Phraya Company Limited* 100.0 100.0 Investment holding
Kyoto Resorts YK Company Limited# 100.0 100.0 Hotel owner
Aimtop Investments Limited# 100.0 100.0 Investment holding
Subsidiaries held through Aimtop Investments Limited#
Sustipan d.o.o. Company Limited* 100.0 100.0 Hotel owner
Subsidiaries held through Pacific Assets Public Company Limited#
Pacific Resorts Hotel Group Limited** - 100.0 Hotel owner
Pacific Hotel Chiangmai Company Limited 100.0 100.0 Hotel owner
Pacific Chiangmai Company Limited 100.0 100.0 Rental of service apartments
Pantip Management Services Company Limited 100.0 100.0 Property management
Pacific Phuket Company Limited* 100.0 100.0 Hotel owner
Pacific Meridien Resorts Company Limited 100.0 100.0 Investment holding
Pacific Force Company Limited 100.0 100.0 Property management
Sukhumvit 83 Retail Development Company Limited 75.0 75.0 Property development
Pacific Resorts Limited 100.0 100.0 Investment holding
Pacific City Club Limited 100.0 100.0 Private club
Forerun Group Limited 100.0 100.0 Investment holding
* Currently no income from operations
** This company merged with Pacific Assets Public Company Limited in the fourth quarter of
2006 and finished a liquidation in the first quarter of 2007.
# Audited by other auditors
Page 11
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
Total assets and total revenues of subsidiaries included in the interim consolidated financial
statements for the three-month period ended 31 March 2007, reviewed by other auditors, were as
follows:
(Unit : Million Baht)
Total revenues included in the
Total assets included in the consolidated statement of
consolidated balance sheet income
3 subsidiaries 4,170 139
Total investment in associates and share of net loss included in the consolidated interim financial
statements for the three-month period ended 31 March 2007, reviewed by other auditors, were as
follows :
(Unit : Million Baht)
Total investment in associates Total share of net loss included
included in the consolidated in the consolidated statement
balance sheet of income
3 associates 2,601 3
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying interim financial statements have been prepared in accordance with generally
accepted accounting principles. Accounting principles that have been applied in the preparation
of the interim financial statements for the three-month period ended 31 March 2007 are similar to
those which have been applied in the financial statements for the year ended 31 December 2006,
except for the change in the accounting policy for recording investments in subsidiary and
associated companies in the Company’s separate financial statements in which the cost method is
applied rather than the equity method, as described in Note 3 to the interim financial statements.
Page 12
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
3. CHANGE IN ACCOUNTING POLICY FOR RECORDING INVESTMENTS IN SUBSIDIARY AND
ASSOCIATED COMPANIES IN THE COMPANY’S SEPARATE FINANCIAL STATEMENTS
Starting from 1 January 2007, the Company changed its accounting policy in the Company’s
separate financial statements for its investments in subsidiaries and associates, of which the
Company owns directly and indirectly and has controlling or significant influence in these
companies, from the equity method to the cost method as the announcement made by the
Federation of Accounting Professions.
The Company has made retroactive adjustment to the Company’s separate balance sheet as at
31 December 2006 and statement of income for the three-month period ended 31 March 2006.
The effects of the change are as follows:
(Unit : Thousand Baht)
The Company’s separate balance sheet as at 31 December 2006
Increase in short-term loans to related parties and
interest receivable** 104,087
Increase in investments in subsidiaries and associates 239,331
Decrease in liabilities from investments accounted for 9,841
under equity method
Decrease in currency translation differences
as the beginning of the year 6,660
Decrease in currency translation difference
as the end of the year 24,847
Decrease in deficit as the beginning of the year 234,481
Decrease in deficit as the end of the year 328,412
The Company’s separate statement of income for the three-month
period ended 31 March 2006
Decrease in share of net loss from investments using the equity method 108,034
Increase in dividend income 5,866
Increase in loss from impairment of investment 6,028
Increase in doubtful accounts expense 14,338
Decrease in net loss for the period 93,534
Decrease in loss per share (Baht) 0.01
** In 2006, the Company recorded its investments in subsidiaries by equity method which
realized the share loss from subsidiaries, over the valuation of such investments, by net of the
short-term loans to subsidiaries. After the Company has changed its accounting policy of
investments in subsidiaries to cost method, the Company has adjusted by reversal of the share
loss from subsidiaries against the short-term loans to subsidiaries.
The change in accounting policy does not affect on the consolidated financial statements and its
business fundamentals.
Page 13
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
4. CURRENT INVESTMENT
(Unit : Thousand Baht)
Consolidated The Company Only
31 March 31 December 31 March 31 December
2007 2006 2007 2006
Private fund 50,110 300,000 - -
Bill of exchange 49,961 99,922 - -
Unit of open fund 3,271 16,161 - -
Current investment 103,342 416,083 - -
As at 31 March 2007, a subsidiary company has an investment in private fund managed by a
financial institution of Baht 50 million, at interest rate of 3.75% per annum, maturity date on 4 April
2007 and an investment in bill of exchange issued by a related financial institution of Baht 50
million, at interest rate of 5.75% per annum maturity date on 5 April 2007. Furthermore, a
subsidiary had an investment in open fund managed by a financial institution of Baht 3 million.
5. TRADE ACCOUNTS RECEIVABLE - NET
As at 31 March 2007 and 31 December 2006, the balances of accounts receivable, as classified
by aging, were as follows:
(Unit : Thousand Baht)
Consolidated The Company Only
2007 2006 2007 2006
Not more than 3 months 35,327 37,231 1,922 2,653
Overdue 3 - 6 months 5,111 1,593 141 435
Overdue 6 - 12 months 1,175 3,821 918 1,072
Over 12 months 21,807 19,330 18,904 18,368
Total 63,420 61,975 21,885 22,528
Less : Allowance for doubtful accounts (21,841) (21,301) (18,528) (17,992)
Trade accounts receivable - net 41,579 40,674 3,357 4,536
The allowance for doubtful accounts has been set up from the balance of accrued rental income
outstanding for more than one year, after deducting deposits and advances received from
customers.
Page 14
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
6. RELATED PARTY TRANSACTIONS
The Company had significant business transactions with subsidiaries (which have already been
eliminated from the consolidated financial statements), associates, joint venture and related
parties which are related by way of shareholding or common shareholders or common directors.
Such transactions, which have been concluded on the terms and basis as shown in the respective
agreements or as determined by the Company and the respective parties, have been summarised
below:
(Unit : Thousand Baht)
For the three-month periods ended 31 March
Consolidated The Company Only
2007 2006 2007 2006
a) Income
(1) Subsidiaries
Interest income - - 16,443 13,780
(2) Associates
Revenue from restaurant business 2,607 2,124 - -
Management fee income - 1,367 - -
Interest income - 1,279 - -
Dividend income - 5,865 - 5,865
(3) Joint venture
Revenue from restaurant business - - - -
Interest income 767 386 767 386
b) Expenses
(1) Subsidiaries
Administrative expenses - - 291 262
Interest expense - - 16,418 19,356
(2) Associates
Administrative expenses 4,436 1,972 - -
Rental expenses 830 830 - -
Interest expense 5,885 - 5,885 -
Page 15
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
(Unit : Thousand Baht)
For the three-month periods ended 31 March
Consolidated The Company Only
2007 2006 2007 2006
(3) Related companies
Administrative expenses 1,036 1,253 -
c) Construction in progress - associate - 15,953 - -
The significant balances of assets and liabilities with its related parties were as follows :
(Unit : Thousand Baht)
Consolidated The Company Only
31 March 31 December 31 March 31 December
2007 2006 2007 2006
a) Current investments – bills of exchange
(1) Related company
Finansa Public Company Limited
(Interest at the rate of 5.75% per
annum (2006 : interest at the rate of
5.50% - 6.50% per annum), maturity
within 5 April 2007) 49,961 99,922 - -
b) Amounts due from related parties - net
(1) Subsidiaries
Natural Project Chao Phraya Company
Limited - - 13,331 13,331
Others - - 20 16
Page 16
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
(Unit : Thousand Baht)
Consolidated The Company Only
31 March 31 December 31 March 31 December
2007 2006 2007 2006
(2) Associates
Sansiri Public Company Limited - 2,054 - 2,054
UOB Apartment Property Fund One 3,321 2,596 - -
(3) Joint venture
The Joint Venture of Natural Park
Public Company Limited,
Amanresorts Services Ltd. and
Silverlink Holdings Ltd. 6,601 6,601 6,601 6,601
(4) Related companies
The Natural Place Tower Limited 69,192 69,192 69,190 69,190
Sathorn Office Park Company Limited 3,686 3,686 3,686 3,686
Syntec Construction Public Company
Limited 361 361 - -
Richee Inter Business Company
Limited 330 330 - -
Others 508 463 - -
Total 83,999 85,283 92,828 94,878
Less : Allowance for doubtful accounts (72,751) (74,804) (72,748) (74,802)
Net 11,248 10,479 20,080 20,076
c) Amounts due from related parties – long term
(1) Related company
Andaman Development Co., Ltd. 37,399 37,399 - -
Page 17
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
(Unit : Thousand Baht)
Consolidated The Company Only
31 March 31 December 31 March 31 December
2007 2006 2007 2006
d) Trade accounts payable – related parties
(1) Subsidiaries
Park Cuisine Company Limited - - 291 -
Park Gourmet Company Limited - - - 40
(2) Associates
UOB Apartment Property Fund One 9,285 5,701 - 4
Syntec Construction Public Company
Limited 192,856 192,855 - -
Total 202,141 198,556 291 44
e) Short-term loans to related parties and interest receivable - net
The movements of short-term loans to related parties and interest receivable for the three-month
period ended 31 March 2007 and for the year ended 31 December 2006 were as follows :
(Unit : Thousand Baht)
Consolidated The Company Only
31 March 31 December 31 March 31 December
2007 2006 2007 2006
Opening net book amount 13,768,142 13,401,531 15,103,962 15,129,083
Increase 80,385 366,611 104,162 567,633
Decrease - - (5,108) (552,146)
Foreign currency translation - - (5,784) (40,608)
Closing net book amount 13,848,527 13,768,142 15,197,232 15,103,962
Consisted of :
Loans 6,902,779 6,896,752 8,127,952 8,120,248
Interest receivable 6,945,748 6,871,390 7,069,280 6,983,714
Total 13,848,527 13,768,142 15,197,232 15,103,962
Less : Allowance for doubtful accounts (13,723,920) (13,650,302) (13,910,971) (13,811,708)
Net 124,607 117,840 1,286,261 1,292,254
Page 18
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
Short-term loans to related parties and interest receivable consisted of the following :
(Unit : Thousand Baht)
Consolidated The Company Only
31 March 31 December 31 March 31 December
2007 2006 2007 2006
(1) Subsidiaries
Park Opera Company Limited - - 199,165 196,639
Natural Park Ville Company Limited - - 80,608 80,142
Richee Property Management Company
Limited - - 14,682 14,622
Natural Project Chao Phraya Company
Limited - - 608,458 598,498
Kyoto Resorts YK Company Limited - - 248,655 252,042
Park Cuisine Company Limited - - 146,082 143,030
Natural Hotel Panwa Company Limited - - 27,250 26,950
Aimtop Investments Limited - - 23,805 23,897
Total - - 1,348,705 1,335,820
Less : Allowance for doubtful accounts - - (187,051) (161,406)
Net - - 1,161,654 1,174,414
(2) Associates
Siri Phuket Company Limited 121,649 121,649 121,649 121,649
Less : Allowance for doubtful accounts (49,760) (49,760) (49,760) (49,760)
Net 71,889 71,889 71,889 71,889
(3) Joint venture
The Joint Venture of Natural Park Public
Company Limited, Amanresorts Services
Ltd. and Silverlink Holdings Ltd. 52,718 45,951 52,718 45,951
Net 52,718 45,951 52,718 45,951
Page 19
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
(Unit : Thousand Baht)
Consolidated The Company Only
31 March 31 December 31 March 31 December
2007 2006 2007 2006
(4) Related companies
The Natural Place Tower Limited 1,789,259 1,776,873 1,789,259 1,776,873
Sathorn Office Park Company Limited 77,476 76,967 77,476 76,967
Chatnarong Company Limited 2,026,405 2,014,693 2,026,405 2,014,693
M&C Property Service Company Limited 7,165,421 7,130,889 7,165,421 7,130,889
Nom Anant Company Limited 755,154 751,332 755,154 751,332
Panya Holding Company Limited 1,860,445 1,849,788 1,860,445 1,849,788
Total 13,674,160 13,600,542 13,674,160 13,600,542
Less : Allowance for doubtful accounts (13,674,160) (13,600,542) (13,674,160) (13,600,542)
Net - - - -
Short-term loans to related parties and interest
receivable - net 124,607 117,840 1,286,261 1,292,254
The Company has made fully allowances for all short-term loans to related companies, while the
Company has not discontinued recognition of interest income. The increment in interest
receivable for the three-month period ended 31 March 2007 was Baht 73.62 million. However, the
Company has made full allowance for such interest income. In addition, in the statements of
income, the Company has presented the interest income from related companies by setting - off
such amounts with allowance for doubtful accounts. At present, the Company is closely monitoring
to collect its loans and taking into the legal actions to received them.
Page 20
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
f) Short-term loans from related companies and interest payable
The movements of short-term loans from related companies and interest payable for the
three-month period ended 31 March 2007 and for the year ended 31 December 2006 were
as follows:
(Unit : Thousand Baht)
Consolidated The Company Only
31 March 31 December 31 March 31 December
2007 2006 2007 2006
Opening net book amount - - 1,699,624 1,460,456
Increase 13,121 - 101,303 460,294
Decrease - - (544,792) (221,126)
Closing net book amount 13,121 - 1,256,135 1,699,624
Consisted of the following :
Loans - - 1,159,912 1,600,413
Interest payable 13,121 - 96,223 99,211
Total 13,121 - 1,256,135 1,699,624
Short-term loans from related companies and interest payable consisted of the following:
(Unit : Thousand Baht)
Consolidated The Company Only
31 March 31 December 31 March 31 December
2007 2006 2007 2006
(1) Subsidiaries
Natural Real Estate Company Limited
(Interest at 5.50% per annum) - - 876,765 846,977
Natural Hotel Sukhumvit Company Limited
(Interest at 6.00% per annum) - - 306,249 302,340
Pacific Assets Public Company Limited
(Interest at 6.50%, 7% and 8.25% per annum) - - 60,000 60,416
Natural Hotel Siam Company Limited
(Interest at 6.00% per annum) - - - 489,891
Total short-term loans from subsidiaries - - 1,243,014 1,699,624
Page 21
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
(Unit : Thousand Baht)
Consolidated The Company Only
31 March 31 December 31 March 31 December
2007 2006 2007 2006
(2) Associate
Natural Hotel Siam Company Limited
(Interest at 6.00% per annum) 13,121 - 13,121 -
Total short-term loans from associate 13,121 - 13,121 -
Total short-term loans from related
companies and interest payable 13,121 - 1,256,135 1,699,624
g) Guarantees
g.1) As at 31 March 2007, the Company has contingent liabilities in respect of debentures
guarantees given on behalf of a subsidiary, Natural Hotel Panwa Company Limited
(see Note 18).
g.2) As at 31 March 2007, the Company, as a guarantor, and a subsidiary, Natural Real
Estate Company Limited, has commitment from the guarantee agreement with a
company to guarantee damages or expenses incurred not exceeding Baht 63 million,
which will end on 21 November 2008.
g.3) As at 31 March 2007, the Company and its subsidiaries have contingent liabilities in
respect of loan guarantees given on behalf of its subsidiaries and other related
companies amounting to Baht 656 million.
7. SHORT-TERM LOAN TO THIRD PARTY COMPANY
On 31 May 2006, the Board of Directors’ meeting of a subsidiary, Pacific Assets Public Company
Limited, resolved a lending to other company at Baht 160 million for a period of 3 months which is
due on 1 September 2006 and renewable for another 3 months. This loan bears interest at 10%
per annum. The loan is secured by a pledge of the shares of the borrower and a related company
of the borrower, the transfer of a right to collect a land lease fee of Baht 160 million and personal
guarantee from a director of the borrower.
On 28 August 2006, the Board of Directors’ Meeting of the subsidiary resolved to extend the due
date for another 3 months, but renewable for 1 month each up to 30 November 2006.
On 27 December 2006, the Board of Directors’ Meeting of the subsidiary resolved to extend the
due as requested by the borrower to postpone the repayment up to 31 January 2007, with interest
at 10% per annum and the same collaterals.
Page 22
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
On 2 February 2007, the subsidiary agreed with the borrower to extend the due date to 28
February 2007, with interest at 10% per annum until 28 February 2007, with the same collaterals.
The subsidiary has received a loan repayment from the borrower on 30 March 2007.
8. OTHER CURRENT ASSETS - NET
(Unit : Thousand Baht)
Consolidated The Company Only
31 March 31 December 31 March 31 December
2007 2006 2007 2006
Receivable from purchase of land and
buildings with right of redemption 380,000 380,000 - -
Receivable from disposal assets 330,000 330,000 - -
Advances to subcontractors 244,866 245,062 244,866 244,866
VAT receivable 38,283 40,866 2,636 2,579
Retentions for disposals of assets 35,000 35,000 - -
Others 119,486 104,039 17,956 19,604
Total 1,147,635 1,134,967 265,458 267,049
Less : Allowance for doubtful accounts (249,590) (249,590) (249,590) (249,590)
Net 898,045 885,377 15,868 17,459
Receivable from purchase of land and buildings with right of redemption
In the first quarter of 2006, a subsidiary, Pacific Assets Public Company Limited, entered into a
purchase agreement of land and buildings at Panwa cape, Phuket with right of redemption with
Corner Management Limited at Baht 380 million. Under the terms of the agreement, dated 28
February 2006, the seller has a right to redeem such land and building within 6 months
commencing from the registration date, resulting in a return on investment at the rate of 15% per
annum.
Subsequently, on 28 August 2006 and 28 November 2006, the Board of Directors’ meeting of the
subsidiary resolved to extend the redemption date to 28 February 2007 with compensation at 10%
per annum with a condition that the seller shall pay a portion of redemption amount of Baht 20
million in advance, which is a portion of redemption price at the redemption date.
Subsequently, on 27 February 2007, the Board of Directors’ meeting of the subsidiary approved to
extend the redemption term for another 3 months up to 31 May 2007 with the return rate of 10%
per annum with the total redemption amount at due date on 31 May 2007 at Baht 437 million.
Benefits that the Company will receive from this extension are as follow:
Page 23
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
1. Return rate of 10% per annum for the extension period (from 1 March 2007 – 31 May 2007)
totaling Baht 9.5 million which had been received by the subsidiary. This amount will be
considered as a part of redemption amount at the due date.
2. The Baht 20 million that the seller paid to the subsidiary on 28 November 2006 which
previously agreed as part of redemption amount at the due will be converted to immediate
benefit of the subsidiary for this extension and will no longer consider as part of redemption
amount.
3. Apart from the benefits in 2 above, the Seller will pay to the subsidiary additional amount of
Baht 15 million for this extension, which the subsidiary had already received the payment
on 15 March 2007.
Receivable from disposal assets
On 23 November 2006, a subsidiary, Natural Hotel Sukhumvit Company Limited, disposed its
property in Sofitel Sukhumvit Hotel Project to Delmon Siam Company Limited at the price of Baht
1,480 million. The subsidiary has received cash in amount of Baht 1,150 million and promissory
note in amount of Baht 330 million, non interest bearing and due at call. On 24 April 2007, the
promissory note was partially repaid in the amount of Baht 193.55 million.
9. INVESTMENTS ACCOUNTED FOR USING THE COST METHOD
Percentage of direct and indirect
holding Consolidated cost method
31 March 31 December 31 March 31 December Nature of
2007 2006 2007 2006 Business
% % Thousand Baht Thousand Baht
Forerun Group Limited*
(Held by Pacific Assets Investment
Public Company Limited) 63.4 63.4 203,771 203,771 holding
* No control and significant influences
Page 24
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
10. INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES, NET
a) The details of investments in subsidiaries, associates and joint venture can be summarised as
follows :
Consolidated as at 31 March 2007
Percentage Allowance
of ownership for change in
Paid-up including valuation of Equity
share capital indirectly held Cost method investments Dividends method
Thousand Baht % Thousand Baht Thousand Baht Thousand Baht Thousand Baht
Investment in associates
Natural Hotel Siam Company Limited 1,200,000 35.00 420,000 (29,116) - 390,884
Siri Phuket Company Limited 1,000 49.00 38,318 (38,318) - -
Sansiri Public Company Limited 6,307,131 24.61 2,268,606 287,996 (192,242) 2,364,360
UOB Apartment Property Fund One 850,000 27.06 230,000 39,261 (32,697) 236,564
Total investment in associates 2,956,924 259,823 (224,939) 2,991,808
Investment in joint venture
The Joint Venture of Natural Park Public Company
Limited, Amanresorts Services Ltd. and Silverlink
Holdings Ltd. - (55,356) - (55,356)
Total 2,956,924 204,467 (224,939) 2,936,452
Liabilities from investments accounted for under the
equity method 55,356
Investments accounted for under the equity method 2,991,808
Page 25
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
Consolidated as at 31 December 2006
Percentage Allowance
of ownership for change in
Paid-up including valuation of Equity
share capital indirectly held Cost method investments Dividends method
Thousand Baht % Thousand Baht Thousand Baht Thousand Baht Thousand Baht
Investment in associates
Siri Phuket Company Limited 1,000 49.00 38,318 (38,318) - -
Sansiri Public Company Limited 6,307,131 24.61 2,268,606 294,634 (192,242) 2,370,998
UOB Apartment Property Fund One 850,000 27.06 230,000 35,733 (32,697) 233,036
Total investment in associates 2,536,924 292,049 (224,939) 2,604,034
Investment in joint venture
The Joint Venture of Natural Park Public
Company Limited, Amanresorts Services Ltd.
and Silverlink Holdings Ltd. - (6,999) - (6,999)
Total 2,536,924 285,050 (224,939) 2,597,035
Liabilities from investments accounted for under the
equity method 6,999
Investments accounted for under the equity method 2,604,034
Page 26
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
The Company Only as at 31 March 2007 The Company Only as at 31 December 2006
Percentage Percentage
of ownership of ownership
Paid-up including Paid-up including
share capital indirectly held Cost method share capital indirectly held Cost method
Thousand Baht % Thousand Baht Thousand Baht % Thousand Baht
Investment in subsidiaries
Park Opera Company Limited 22,555 100.00 22,555 22,555 100.00 22,555
Natural Real Estate Company Limited 1,000,000 100.00 1,000,000 1,000,000 100.00 1,000,000
Natural Venture Company Limited 100 100.00 100 100 100.00 100
Natural Park Ville Company Limited 43,000 100.00 243,340 43,000 100.00 243,340
Pacific Assets Public Company Limited 3,340,000 62.50 1,669,916 3,340,000 63.40 1,693,916
Richee Property Management Company Limited 1,000 99.94 999 1,000 99.94 999
Natural Hotel Siam Company Limited - - - 1,200,000 79.99 900,000
Natural Project Chao Phraya Company Limited 1,000 99.94 999 1,000 99.94 999
Natural Hotel Sukhumvit Company Limited 518,750 74.21 359,063 518,750 74.21 359,063
Park Cuisine Company Limited 60,000 100.00 60,000 60,000 100.00 60,000
Park Gourmet Company Limited 25,000 100.00 25,000 25,000 100.00 25,000
Natural Hotel Panwa Company Limited 300,000 100.00 300,000 300,000 100.00 300,000
Kyoto Resorts YK Company Limited Yen 50 million 100.00 17,106 Yen 50 million 100.00 17,106
Aimtop Investments Company Limited USD 6.1 million 100.00 248,100 USD 6.1 million 100.00 248,100
Natural Hotel Chao Phraya Company Limited 100 100.00 100 100 100.00 100
Total investments in subsidiaries 3,947,278 4,871,278
Page 27
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
The Company Only as at 31 March 2007 The Company Only as at 31 December 2006
Percentage Percentage
of ownership of ownership
Paid-up including Paid-up including
share capital indirectly held Cost method share capital indirectly held Cost method
Thousand Baht % Thousand Baht Thousand Baht % Thousand Baht
Investment in associates
Natural Hotel Siam Company Limited 1,200,000 35.00 420,000 - - -
Siri Phuket Company Limited 1,000 49.00 38,318 1,000 49.00 38,318
Sansiri Public Company Limited 6,307,131 24.61 2,268,606 6,307,131 24.61 2,268,606
UOB Apartment Property Fund One 850,000 27.06 230,000 850,000 27.06 230,000
Total investment in associates 2,956,924 2,536,924
Investment in joint venture
The Joint Venture of Natural Park Public Company
Limited, Amanresorts Services Ltd. and Silverlink
Holdings Ltd. - -
Total 6,904,202 7,408,202
Less : Allowance for impairment of investments (445,655) (432,130)
Investments in subsidiaries, associates and joint
venture, net 6,458,547 6,976,072
The Company has partially pledged its shares of investment in subsidiaries and associates with a
group of banks as partial collateral for the Company’s short-term loan and long-term loans from such
group of banks (see Note 15, 17 and 18).
b) The significant transactions of the investment accounted for the equity method for the three-
month period ended 31 March 2007 are as follows:
b.1) On 23 November 2006, the Board of Directors’ meeting of the Company approved the
sales of partial ordinary share 4,800,000 shares with a par value of Baht 100 each
equivalent to 40% of its share registered of Natural Hotel Siam to Al Manar Limited at a
price of Baht 480 million or USD 13.15 million. As a result of the transaction, the
proportion of ownership interest was changed from 75% to 35% and effect to the
Company has no control but still has significant influence with Natural Hotel Siam. The
Company changed its classification of long-term investment from “investment in
subsidiary” to “investment in associates”.
Page 28
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
b.2) On 28 February 2007, the Board of Directors’ meeting of the Company approved the sales
of partial ordinary share 3,000,000 shares with a par value of Baht 10 each or equivalent
to 0.90% of it share registered of Pacific Assets Public Company Limited at a price of
Baht 15.30 million.
11. INVESTMENTS IN RELATED COMPANIES - NET
(Unit : Thousand Baht)
Consolidated The Company Only
31 March 31 December 31 March 31 December
2007 2006 2007 2006
Available-for-sale securities
Aggregate cost
Finansa Public Company Limited 885,689 940,000 885,689 940,000
(Percentage of shares held: 17.16% in 2007
and 18.75% in 2006)
Bangkok Metro Public Company Limited 1,101,546 1,101,546 1,101,546 1,101,546
(Percentage of shares held: 6.86%)
Syntec Construction Public Company Limited 327,760 327,760 327,760 327,760
(Percentage of shares held: 19.95%)
Less : Unrealised loss on
available-for-sale securities (993,135) (899,210) (993,135) (899,210)
Investment in related companies - net 1,321,860 1,470,096 1,321,860 1,470,096
In January 2007, a financial institution forced the Company to sell investment in Finansa Public
Company Limited of 1.30 million shares at Baht 9.50 per shares in totaling amount of Baht 12.35
million.
The Company has pledged its shares of investments in related companies - Finansa Public
Company Limited and Syntec Construction Public Company Limited with a group of banks as
partial collateral for the Company’s short term and long term loans from such group of banks (see
Note 15 and 17).
The Company has partially pledged its shares of investment in a related company - Bangkok
Metro Public Company Limited of 820.26 million shares with a group of banks as partial collateral
for the said related company’s long term loan from such group of banks.
Page 29
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
12. PROPERTY, PLANT AND EQUIPMENT – NET
(Unit: Thousand Baht)
Consolidated The Company Only
As at 31 December 2006
Cost 3,512,594 521,978
Less Accumulated depreciation (639,709) (318,075)
Allowance for impairment loss (335,462) -
Net book amount 2,537,423 203,903
For the three-month period ended
31 March 2007
Opening net book amount 2,537,423 203,903
Additions 32,355 786
Disposal of subsidiary (166,717) -
Depreciation charge (42,969) (5,637)
Reversal of allowance for impairment loss 12,787 -
Disposals – net (15,364) (12)
Closing net book amount 2,357,515 199,040
As at 31March 2007
Cost 3,350,757 522,729
Less Accumulated depreciation (670,567) (323,689)
Allowance for impairment loss (322,675) -
Net book amount 2,357,515 199,040
The Company and its subsidiaries have mortgaged certain plots of land, buildings on leasehold land,
building and land awaiting development with certain financial institutions as security against overdrafts
and loans from such financial institutions and debenture as describe in note 15, 17 and 18.
Page 30
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Interim Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
13. LEASEHOLD RIGHT OF LAND AND BUILDING - NET
The movements of leasehold rights of land and buildings for the three-month period ended 31 March
2007 were as follows :
(Unit : Thousand Baht)
Consolidated
Opening net book amount as at 1 January 2007 708,925
Additions during the period 254,832
Decrease during the period (458,583)
Currency translation (175)
Amortisation during the period (4,667)
Closing net book amount as at 31 March 2007 500,332
On 1 March 2007, a subsidiary, Pacific Assets Public Company Limited, entered into an agreement with
Chaiyanan–Bangplee Parkland Co., Ltd. (“Chaiyanan”) to sublease right of land and 14 units of building,
area totaling 20,243 square metre, for a period of 30 years and 3 months starting from 1 March 2007 to 31
May 2037 to operate subleasing service for industrial and commercial entrepreneur. The subsidiary
agreed to pay a building lease compensation throughout the lease term at Baht 253 million and monthly
land lease at Baht 121,458 and adjust to increase 20% in every five years, and monthly central service
fee at Baht 96,154, adjust to increase by not exceed 10% in every three years. On the contract date, the
subsidiary already paid a compensation for building lease at Baht 25 million to Chaiyanan-Bangplee
Parkland Co., Ltd. The remaining balance of building lease at Baht 228 million, the subsidiary had already
made a payment at the registered date of the lease on 28 March 2007. The Company presented such
transaction as part of leasehold right of land and building-net in the consolidated balance sheet as at 31
March 2007.
14. OTHER NON-CURRENT ASSETS
(Unit : Thousand Baht)
Consolidated The Company Only
31 March 31 December 31 March 31 December
2007 2006 2007 2006
Land awaiting development 1,608,734 1,603,734 - -
Leasehold land awaiting development 45,000 45,000 - -
Deposits for investment in Chedi Phuket Project 40,871 40,871 - -
Deposits for investment in Bangkok Free Trade Zone 30,000 - - -
Advance payment for the technical services 14,941 14,941 - -
Others 43,444 49,311 5,778 5,778
Total 1,782,990 1,753,857 5,778 5,778
Page 31
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Interim Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
Land awaiting development
As at 31 March 2007 the subsidiaries have land awaiting development in the amount of Baht 1,090
million which has been mortgaged to secure overdrafts and loans from financial institutions.
The Board of Directors of a subsidiary, Pacific Asset Public Company Limited on 22 February 2007
has unanimously approved a purchase and receives a transfer land with no construction at Amplur
Koh Samui, Suratthani as a part of hotel project at Samui, area of 2 rai, 2 ngan, 40 sq wah at totaling
Baht 18 million. The Company had already made a payment. As at 31 March 2007, the Company
presented such transaction as part of land awaiting for development in the consolidated balance
sheet.
Deposits for investments in Chedi Phuket Project
In the third quarter of 2006, the subsidiary resolved to invest in the “Chedi Phuket Project”. The
subsidiary, Pacific Assets Public Company Limited has therefore transferred the deposit for
investment, amounting to Baht 241.17 million, to be presented as “investment” and “amount due
from related parties” of Baht 203.77 million and Baht 37.40 million, respectively in the consolidated
balance sheet as at 31 December 2006.
As at 31 March 2007, the subsidiary had a deposit remained amounting to USD 1 million which was
paid to Amanresorts Services Ltd. for the option in consideration for granting of a first right of refusal
for the acquisition of additional interest in the company.
Deposits for Bangkok Free Trade Zone Project
In March 2007, a subsidiary, Pacific Assets Public Compnay entered into an agreement with
Chaiyanan-Bangplee Parkland Co.,Ltd. (“Chaiyanan”) to sublease right of land and building in the
Bangkok Free Trade Zone Project as described in Note 13. In addition, the subsidiary paid a deposit
amounting to Baht 30 million to Chaiyanan to sublease right of land and building of another project
which is being constructed.
Advance payment for the technical services
In August 2005, a subsidiary, Pacific Assets Public Company Limited paid an advance for technical
services fee to Amanresorts International Pte Ltd. in the amount of Euros 250,000 on the Samui
project. As at 31 March 2007, the subsidiary is an agreement to sell and purchase of Samui Project
and is in process to conclude its advance for technical service.
Page 32
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Interim Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
15. BANK OVERDRAFTS AND SHORT-TERM LOANS FROM FINANCIAL INSTITUTIONS
The balance as at 31 March 2007 and 31 December 2006 represents short-term loans from financial
institutions on which interests are charged at the rate of MOR per annum or the rate as stipulated in
promissory notes.
These loans have been secured by the mortgage of the subsidiary’s land and construction thereon,
land awaiting for development and the pledge of ordinary shares of subsidiaries and related
company and the guarantee by the Company.
16. OTHER CURRENT LIABILITIES
(Unit : Thousand Baht)
Consolidated The Company Only
31 March 31 December 31 March 31 December
2007 2006 2007 2006
Interest payable 406,591 271,572 403,998 269,580
Accrued expenses 63,880 80,845 9,416 12,688
Others 110,466 67,278 4,422 3,959
Total 580,937 419,695 417,836 286,227
17. LONG-TERM LOANS
(Unit : Thousand Baht)
Consolidated The Company Only
31 March 31 December 31 March 31 December
2007 2006 2007 2006
Long-term loans are repayable
as follows :
In one year or less 2,983,235 2,979,179 2,915,836 2,920,836
Between two and five years 581,850 599,849 - -
Total 3,565,085 3,579,028 2,915,836 2,920,836
Long-term loans bear interest at the rates as stipulated in the agreements.
Page 33
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Interim Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
Movement of long-term loans for the three-month period end 31 March 2007 is as follow:
(Unit: Thousand Baht)
Consolidated The Company Only
Brought forward balance as at 1 January 2007 3,579,028 2,920,836
Increase 3,674 -
Repayment (17,617) (5,000)
Carried forward balance as at 31 March 2007 3,565,085 2,915,836
The Company and the subsidiaries have mortgaged certain land, hotel properties, buildings for rent,
related leasehold rights and land awaiting development. In addition, the Company and its
subsidiaries have pledged the following ordinary shares of subsidiaries, associates and related
companies to secure short-term and long-term loans from financial institutions follows.
No. of ordinary shares Par value per share
(Million Shares) (Baht)
Subsidiaries
Pacific Assets Public Company Limited 208.74 10
Pacific Hotel Chiangmai Company Limited 3 100
Pacific Chiangmai Company Limited 2 100
Associates
Sansiri Public Company Limited 362.72 5
UOB Apartment Property Fund One 23 10
Other related companies
Finansa Public Company Limited 21.20 5
Syntec Construction Public Company Limited 319.14 1
As the Company has encountered the crisis in confidence which was caused by the bankruptcy
case in the past, this has affected the Company in all aspects not only the property development,
but also, the capital increase and the debt financing. The Company is in the process of solving such
problems, including loan of Baht 2,916 million that the value of securities covered the loan. The
proposed solution to the problems is as follow:
Page 34
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Interim Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
1. Finding the solution for the bankruptcy case in the past - the Company’ has endeavored to
clarify constantly investors. Besides, the Company has also gathered many legal advices
from many legal experts to find the distinctive solutions as soon as possible.
2. Negotiation with the creditors - As foreign financial institutions are still not confident in the
Company’s status, the Company, therefore, could not find any new sources of debt
refinancing. Then, the Company has endeavored to negotiate with 2 financial institutions in
order to extend the loans repayment period to be in accordance with the Company’s capability
in generating revenues. Currently, a financial institution refused such plan. Meanwhile,
another financial institution now considering our proposed debt repayment plan.
3. Capital Increase - the Company’s shareholders meeting has approved the capital increase for
4,029 million shares which equal to Baht 2,216 million by selling to the existing shareholders
in the proportion of 2:1 (Existing shares : New Issue) at the price of Baht 0.55.
4. Join Investment with Strategic Partners in each project - in order to develop and complete the
existing Company’ projects, the Company has tried to find strategic partners to strengthen the
creditability for obtaining the project financing. At present, the Company is negotiating with a
potential investor to be our partner in restaurant business.
5. Asset Disposal - the Company has disposed many assets in the most efficient time and return
in order to repay debt and increase the financial stability. However, the Company may
consider disposing more assets or some common shares at appropriate price for repaying the
matured debts. Currently, the Company is in the process of negotiating with interest investors
to purchase the assets of the Company.
Finally, the Company will continue solving all problems as well as developing the Company’s
projects successfully.
Page 35
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Interim Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
18. DEBENTURES
On 21 December 2006, a subsidiary, Natural Hotel Panwa Limited, issued secured floating rate
debentures with total initial amounts of Baht 860.52 million (860,522 debentures with par value of
1,000 Baht per share) redemption due within 3 years commencing from the date of issued, the
interest will repayment on monthly basis starting from 15 January 2007 as describe below ;
Proceed from Proceed from
No of issue shares Interest rate debentures as at debentures as at
31 March 2007 31 December 2006
(Thousand Baht) (% per annum) (Thousand Baht) (Thousand Baht) Collateral
Debenture A* 254,000 THBFIX Plus 3.3% per 254,000 254,000 1)Mortgage a subsidiary
annum (announce on land and construction
monthly basis by debenture under hotel development
holders’ representative)
Debenture B 606,522 THBFIX Plus 5.3% per 35,000 35,000 2) All ordinary share of
annum (announce on subsidiary which held by
monthly basis by debenture the Company.
holders’ representative)
860,522 289,000 289,000
The conditions of issuance of the debentures include certain restrictions and covenants, such us the
retain valuation of collateral and maintain total valuation of unredeemed debenture under 75% of the
subsidiary asset.
* Debenture A has right to receive interest and repayment principal before debenture B.
Page 36
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Interim Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
19. FINANCIAL INFORMATION BY SEGMENT
The Company and subsidiaries’ main business is property development for rental, which consists of
service apartment and office building for rent, hotel and others related business.
The financial information by segment of rental and service business, hotel business and others
business in the consolidated financial statements as at 31 March 2007 and 31 December 2006 and
for the three months period ended 31 March 2007 and 2006 are as follows :
(Unit : Million Baht)
Consolidated
For the three months period ended 31 March
Rental and service
business Hotel business Other business Total
2007 2006 2007 2006 2007 2006 2007 2006
Revenues 43 36 68 26 30 50 141 112
Operating profit (loss) 11 (36) (4) (14) (4) 21 3 (29)
Other income 84 18
Administrative expenses (157) (157)
Share of profit (loss) from
investments accounted under
equity method (54) 8
Loss before interest expense
and corporate income tax (124) (160)
Interest expense (170) (114)
Corporate income tax (11) (4)
Loss before attributable
to minority interest (305) (278)
Loss attributable to
minority interest 8 29
Net loss for the period (297) (249)
(Unit : Million Baht)
Rental and service
business Hotel business Other business Total
31 31 31 31 31 31 31 31
March December March December March December March December
2007 2006 2007 2006 2007 2006 2007 2006
Property, plant and equipment, net 231 238 1,772 1,798 77 81 2,080 2,117
Construction in progress - - 45 204 232 216 277 420
Leasehold rights, net 257 4 8 467 235 238 500 709
Land awaiting development - - 847 832 762 771 1,609 1,603
Other assets 4,745 4,363 1,531 2,039 70 17 6,346 6,419
Total assets 5,233 4,605 4,203 5,340 1,376 1,323 10,812 11,268
Page 37
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Interim Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
20. BANK GUARANTEES
As at 31 March 2007, there were outstanding bank guarantees of approximately Baht 124.49 million
issued by the banks on behalf of the Company and subsidiaries as required in the normal course of
business.
21. COMMITMENTS
21.1 As at 31 March 2007, the Company had outstanding commitments as follows :
a) Commitments under lease agreements covering the land where certain buildings
belonging to the Company are situated. Under the lease agreements, the lease period
is 30 years commencing from 1 March 1988 and the Company is committed to pay
future rental at the rate specified in the agreements totalling Baht 12.70 million.
b) Commitments of Baht 50.86 million under renovation agreements.
c) On 10 May 2005, the Company as a member of the Joint Venture of Natural Park Public
Company Limited, Amanresorts Service Limited and Silverlink Holdings Limited (“the
Joint Venture”) entered into certain agreements related to the Ratchaphatsadu land at
the Rong Pasee Roi Chak Sam Development Project with the Treasury Department,
Ministry of Finance. The Joint Venture will invest to develop the Ratchaphatsadu land to
construct a hotel and related construction and transfer the ownership right to the
Treasury Department. The Joint Venture will then be entitled to the right to manage the
constructed hotel for 30 years commencing from the date of the execution of the
agreements. The Joint Venture paid an upfront management fee to the Treasury
Department in the amount of Baht 125 million on the date of entering into the
agreements.
In addition, annual rental fees under the agreement will be payable by the Joint Venture
as follows :
Rental rate per annum
Years Million Baht
Years 1 – 11 3.30
Years 12 – 16 30.00
Years 17 – 20 40.00
Years 21 – 30 100.00
21.2 As at 31 March 2007, a subsidiary, Park Opera Company Limited, has outstanding
commitments of Baht 18.52 million, USD 0.46 million and AUD 0.01 million under consultant
and building design agreements.
Page 38
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Interim Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
21.3 As at 31 March 2007, a subsidiary, Park Cuisine Company Limited, has outstanding
commitments as follows:
a) Commitment under a trademark licensing and technical assistance agreement. This
agreement will expire 10 years after the opening of the first shop or café. The subsidiary
is committed to pay operating fees according to the agreement commencing from 1
January 2004 as follows:
Year Fees (EURO)
1st year 41,875
2nd year 55,000
3rd year 85,000
4th year 92,500
5th – 10th years 102,500
An additional royalty fee of 1.5% of sales income is also payable.
b) Commitment to pay rentals under its rental agreements for its restaurants and its office
building amounting to Baht 13.59 million.
21.4 As at 31 March 2007, a subsidiary, Natural Hotel Panwa Company Limited has
outstanding commitments under building design and decoration agreement amounting
to Baht 5.55 million.
21.5 As at 31 March 2007, a subsidiary of Pacific Assets Company Limited has outstanding
commitments under operating lease agreements amounting to Baht 133 million.
21.6 As at 31 March 2007, a subsidiary, Natural Project Chao Phraya Company Limited, has
outstanding commitments under study agreements of it project and other service in totaling
amounting to USD 0.80 million and Baht 0.17 million, respectively.
21.7 As at 31 March 2007, a subsidiary, Natural Park Ville Company Limited, has outstanding
commitments under lease agreements commencing from 1 November 2004 to 31 July 2007
and under this agreement the company commit to pay lease expenses in the future at the
rate which state in agreement in totaling amounting to Baht 1.11 million.
21.8 The Company has an outstanding commitment of Baht 294.63 million in respect of an
uncalled portion of investment in the ordinary shares of its subsidiaries.
Page 39
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Interim Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
22. LITIGATION ISSUES
The Company has the litigation issues in accordance to the business reorganization in the past as
follow
22.1 A shareholder, which was firstly the Company’s debenture holder and been paid for a whole
debt, has filed the petition below
22.1.1 On 9 December 2004, a shareholder of the Company has filed the petition against the
Company, other companies and involved person for violations of the Securities and
Exchange Act B.E. 2535 and the Bankruptcy Act B.E. 2483. Currently, the case is in
the consideration of Criminal Court.
22.1.2 On 12 October 2005, the Central Bankruptcy Court has dismissed the bankruptcy
case as a result of the Company is not insolvent and not bankrupt which such
shareholder had filed the bankruptcy case on 28 March 2000 and request the Central
Bankruptcy Court to bring the case back for reconsidering on 4 May 2005.
Subsequently, such shareholder had appealed the judgment of Central Bankruptcy
Court to the Supreme Court. The case is presently under the consideration of the
Supreme Court.
22.1.3 On 4 May 2005, such shareholder has requested the Southern Bangkok Civil Court to
bring the case back for reconsidering which was filed in 1999 (Before the Company
entered into the business reorganisation) for the ground of loan in the amount of Baht
260.30 million. The case is currently in the consideration of the Southern Bangkok
Civil Court.
22.1.4 On 25 January 2007, the Central Bankruptcy Court read the judgment of Supreme
Court which such shareholder has appealed the decision of the Central Bankruptcy
Court that rejected the business reorganization case from the court. The Supreme
Court withdrew the order of the Central Bankruptcy Court as stated in the court case
report dated 1 September 2003 and ordered the Central Bankruptcy Court to inform
the Supreme Court’ s judgment No. 950/2546 to bankruptcy case red No. 219/2543
for further proceeding immediately. The said bankruptcy case is the same case as
described in Note 22.1.2.
22.2 On 26 August 2004, a financial institution which was paid for a whole amount of debt
according to the rehabilitation plan, has submitted the petition requesting the court to retrial
for the civil case which file against the Company on 26 December 1997 to the Southern
Bangkok Civil Court for the ground of loan in the amount of Baht 87.80 million. The case is
presently under the consideration of the Southern Bangkok Civil Court.
Page 40
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Interim Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
22.3 On 27 October 2005 and 29 November 2005, the official receiver of 2 financial institutions has
notified the Company to repay the interest of debenture in the amount of Baht 34.22 million
which the Financial Sector Restructuring Authority had auctioned to other persons. The
Company has submitted the objection against the official receiver’s order to the Central
Bankruptcy Court. The case is presently under the consideration of the Central Bankruptcy
Court.
22.4 On 17 August 2006 and on 2 February 2007, 2 financial institutions which was paid for a
whole amount of debt has filed the civil case against the Company to the Southern Bangkok
Civil Court for the ground of loan and guarantee amount in the amount Baht 888.81 million
that was before the Company entered into the business reorganization. The case is presently
under the consideration of the Central Bankruptcy Court.
23. SUBSEQUENT EVENT
23.1 On 27 April 2007 the resolution of the ordinary shareholder meeting No. 1/2007 of the
Company was notify as follows:
a) Resolved to approve the increase of registered share capital from Baht 8,057.16 million
to Baht 12,085.74 million with par value of Baht 1 per share in totaling amount of Baht
4,028.58 million.
b) Acknowledged UOB Kay Hian Finance Limited’s force sale in Finansa Public Company
Limited shares totaling Baht 8.04 million to repay the debt owned by the Company to
aforesaid financial institution and rectified all transaction and any actions related to loan
from such financial institution and the pledge of shares in Finansa Public Company
Limited as the security for such loan repayment.
c) Cancelled the resolution of the ordinary shareholders’ meeting of the Company
No.1/2005 on 28 April 2005 that approved the sale of common shares in Finansa Public
Company Limited of 22.50 million shares at the price of not lower than 30 days weighted
average market price before such shareholders meeting.
23.2 On 26 April 2007 the resolution of the ordinary shareholder meeting No. 1/2007 of a
subsidiary, Pacific Assets Public Company Limited, resolved to approve the reduction legal
reserve in amount of Baht 7.49 million and premium on share capital in amount of Baht
1,396.52 million by offsetting with the accumulated losses.
Page 41
NATURAL PARK PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
Notes to Interim Financial Statements
31 March 2007 and 2006 (Reviewed)
31 December 2006 (Audited)
24. OTHER MATTER
In September 2006, a subsidiary, Pacific Assets Public Company Limited entered into a sale of land
with no construction in the total area of 131-0-10.3 rai which had been acquired since 25
December 2003, and a transfer of lease right of land with no construction in the total area of 7-2-6.9
rai which had been acquired since 30 December 2004 under the 30-year lease term starting from
1 October 2007, both of which are located at Tambon Boh Phut, Amphue Koh Samui, Suratthani
Province to Lehman Brothers (Thailand) Co., Ltd. and / or persons specified by Lehman Brothers
(Thailand) Co., Ltd. (“Purchaser”) in the total consideration of Baht 1,175 million.
Subsequently, the subsidiary agreed with Lehman Brothers (Thailand) Co., Ltd. to amend an
agreement and extend a closing date from 31 January 2007 to 28 February 2007 or date determined
by the buyer.
Subsequently, the subsidiary has been notified by the purchaser to extend a closing date for six
months. The Board of Directors at their meeting on 27 February 2007, has unanimously approved to
extend a closing date as proposed. As at 31 March 2007, the subsidiary is in negotiating for the
conclusion of such purchase and sales agreement.
Page 42