KIS Facsimile by jolinmilioncherie

VIEWS: 3 PAGES: 24

									                                 EVERLAND PUBLIC COMPANY LIMITED AND SUBSIDIARY
                                   NOTES TO INTERIM FINANCIAL STATEMENTS
                             FOR EACH OF THE THREE-MONTH AND SIX-MONTH PERIODS ENDED
                                    JUNE 30, 2011 AND 2010 (UNAUDITED) (REVIEWED)
                                       AND AS AT DECEMBER 31, 2010 (AUDITED)
1. GENERAL INFORMATION
   Everland Public Company Limited (“the Company”) was incorporated in Thailand. On February 17, 1994, the Company was
   listed on the Stock Exchange of Thailand. The Company’s primary business is property development. Presently, the Company
   is located at 223/96 Country Complex Tower A, 21st Floor, Sanpawut Road, Kwang Bangna, Khaet Bangna, Bangkok.
2. BASIS OF PREPARATION OF THE INTERIM FINANCIAL STATEMENTS
   The interim financial statements are prepared in accordance with Thai Accounting Standards (“TAS”) and Thai Financial
   Reporting Standards (“TFRS”) including related interpretations and guidelines promulgated by the Federation of Accounting
   Professions (“FAP”) in conformity with generally accepted accounting principles in Thailand.
   The interim financial statements have been prepared in the Thai language and expressed in Thai Baht. Such interim financial
   statements have been prepared for domestic reporting purposes. For the convenience of the readers not conversant with the
   Thai language, an English version of the interim financial statements has been provided by translating from the Thai version
   of the interim financial statements.
   Other than those specified in the notes to the annual and interim financial statements, all other balances presented in these
   interim financial statements are prepared under the historical cost basis.
   The interim financial statements have been prepared to provide information additional to that included in the financial
   statements for the year ended December 31, 2010. They focus on new activities, events and circumstances to avoid repetition
   of information previously reported. Accordingly, these interim financial statements should be read in conjunction with the
   financial statements for the year ended December 31, 2010.
   The Group operates mainly as a property development business. Therefore, the Group is not required to disclose further
   segmented information.
   The preparation of the interim financial statements in conformity with Thai accounting standards requires management to
   make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities,
   income and expenses. The estimates and associated assumptions are based on historical experience and various other factors
   that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments
   about carrying amounts of assets and liabilities that are not readily apparent from other sources. Subsequent actual results may
   differ from these estimates.




                                                                                                                         12
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimate is revised, if the revision affects only that period, and in the period of the
revision and future periods, if the revision affects both current and future periods.
BASIS OF PREPARATION OF THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
The consolidated interim financial statements consist of the financial statements of Everland Public Company Limited, and
subsidiary (together referred to as “the Group”) as follows:
                                                                                           Percentage of Investment (%)
                                                                                             June 30,             December 31,
           Subsidiary                   Located in         Type of Business             2011           2010           2010
Nattanant Development Co., Ltd.          Thailand        Property Development             99.99           99.99         99.99

All significant intercompany transactions and accounts are eliminated in preparing the consolidated interim financial
statements.
A subsidiary is an entity controlled by the Company. Control exists when the Company has the power, directly or indirectly
through other subsidiary, to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The financial statements of the subsidiary are included in the consolidated financial statements from the date that control
commences until the date that control ceases.
The preparations of the consolidated interim financial statements have been based on the same accounting policies for the
same or similar accounting transactions or accounting events.
Adoption of new Thai Financial Reporting Standards
During the six-month period ended June 30, 2011, the Federation of Accounting Professions (“FAP”) has issued
Notifications, mandating the use of new Thai Interpretation (TI) and guidelines as follows:
a)    TI 31 – Revenue – Barter Transactions Involving Advertising Services effective for the financial statements for the
       period beginning on or after January 1, 2011, which the management of the Group has assessed the effects of this
       interpretation and believes that it does not have any significant impact on the financial statements for the current
       period.
b)    TI which are effective for the financial statements for the period beginning on or after January 1, 2013 as follows:

                      TI                                               Topic

           TI 10                         Government Assistance – No Specific Relation to Operating Activities

           TI 21                         Income Taxes – Recovery of Revalued Non-Depreciable Assets

           TI 25                         Income Taxes – Changes in the Tax Status of an Enterprise or its Shareholders




                                                                                                                         13
The management of the Group is assessing the impacts of these interpretation on the financial statements for the period in
which they are initially applied.
c)     The guidelines which are effective for the current period’s financial statements as follows:

          FAP’S Announcements                                         Topic

           No. 16/2554                    Disclosure Guidance on Related Party Transactions with Government

           No. 17/2554                    Transitional Procedures for Other Long-term Employee Benefits

           No. 18/2554                    Accounting Guidance on Revaluation of Assets

           No. 19/2554                    Accounting Guidance for Condominiums

The management of the Group has assessed the effects of these guidelines and believes that they do not have any significant
impact on the financial statements for the current period.
Transition to new and revised TFRS
During the six-month period ended June 30, 2011, the Group has adopted new and revised TFRS which are effective for the
financial statements for the period beginning on or after January 1, 2011. Such transition affected the presentation of the
consolidated financial statements and separate financial statements as at December 31, 2010 and for the three-month and six-
month periods ended June 30, 2010 which have been presented herewith for comparative purposes in conformity with the
presentation of the financial statements for the three-month and six-month periods ended June 30, 2011 and the Group’s
overall financial position and financial performance as follows:
TAS 1 (revised 2009) Presentation of Financial Statements
Under the revised TAS, a set of financial statements comprises:
     - Statement of financial position;
     - Statement of comprehensive income;
     - Statement of changes in equity;
     - Statement of cash flows; and
     - Notes to the financial statements.
As a result, the Company presents all owner changes in equity in the statement of changes in equity and all non-owner
changes in equity in the statement of comprehensive income. Previously, all such changes were included in the statement of
changes in equity.




                                                                                                                  14
Comparative information has been re-presented so that it also is in conformity with the revised standard. Since the change in
accounting policy only impacts presentation aspects, there is no impact on reported profit(loss) or earnings(loss) per share.
TAS 16 (revised 2009) – Property, Plant and Equipment
The main changes of TAS 16 (revised 2009) and affecting the Group as follows:
The residual value of property, plant and equipment has to be measured at the amount estimated receivable currently for the
sales of asset if the asset were already of the age and in the condition expected at the end of its useful life. Furthermore, the
residual value and useful life of an asset have to be reviewed at least at each financial year-end.
The changes have been applied prospectively in accordance with the transitional provisions of the revised TAS.
TAS 18 (revised 2009) - Revenue
In period 2010, the Group recognizes revenue from the sale of the real estate on a percentage of completion basis according to
TAS 102, Income Recognition for Real Estate Business (Formerly: TAS 26), which was superseded when TAS 18 (revised
2009) is effective. The Company has to change its accounting policy for recognizing revenue from the sale real estate project
to the transfer significant risks and rewards of ownership of the real estate to the buyer in its entirety, which caused the Group
adjusted the impact of the change on the consolidated and separate statements of financial position as at December 31, 2010
and on the consolidated and separate financial statements for the six-month period end June 30, 2010 which have been
presented herewith for comparative purposes.
TAS 19 - Employee Benefits
The management of the Group has determined that the liability incurred from the employee benefits as at January 1 , 2011 for
post-employment benefits is the amount of Baht 0.98 million in the consolidated financial statements and the separate
financial statements which applied a transitional provision that such liability is recognized and accounted for immediately in
retained earnings at the transition.
Effect from adoption of Thai Financial Reporting Standards
From January 1, 2011, consequent to the adoption of new and revised TFRS, the Group has effected to the financial
statements as follows:




                                                                                                                        15
                                                                                                                  (Unit: Thousands Baht)
                                                                                                          Consolidated and Separate
                                                                                                            financial statements
                                                                                                          2011               2010
The Statements of Comprehensive Income
For each of the three-month periods ended June 30
Increase in revenue from sales                                                                                   -                5,593
Increase in cost of sales                                                                                        -               (4,163)
Decrease in others income                                                                                        -               (1,443)
Increase in administrative expenses                                                                              (46)               -
(Increase) decrease in profit (loss) for the period                                                              (46)               (13)
(Increase) decrease in basic earnings (loss) per share (Baht per share)                                      (0.0002)            0.0041

The Statements of Comprehensive Income
For each of the six-month periods ended June 30
Increase in revenue from sales                                                                                   -               14,175
Increase in cost of sales                                                                                        -              (10,298)
Decrease in others income                                                                                        -               (2,930)
Increase in administrative expenses                                                                              (92)               -
(Increase) decrease in profit (loss) for the period                                                              (92)               947
(Increase) decrease in basic earnings (loss) per share (Baht per share)                                      (0.0003)            0.0031

                                                                                                                  (Unit: Thousands Baht)
                                                                                Consolidated                      Separate
                                                                             financial statements            financial statements
                                                                          2010                2009        2010                2009
The Statements of Financial Position
Retained eatnings as at December 31 as previously reported                    6,965             46,071        21,700             51,647
Decrease in unbilled receivables                                             (4,692)           (32,120)       (4,692)           (32,120)
Increase in cost of project development                                     237,839            265,065       237,839           265,065
Decrease in installment receivables                                         (86,030)          (102,687)      (86,030)          (102,687)
Increase in advances received from customers                               (340,078)          (327,124)     (340,078)          (327,124)
Increase in employee benefit liabilities                                       (982)                -           (982)                -
Deficit as at December 31                                                  (186,978)          (150,795)     (172,243)          (145,219)




                                                                                                                          16
3. SIGNIFICANT ACCOUNTING POLICIES
   The interim financial statements are prepared using the same accounting policies and methods of computation as were used
   for the financial statements for the year ended December 31, 2010 except the adoption of new and revised TFRS as follows:
   Revenue
   Revenue excluding value added taxes is arrived at after deduction of trade discounts.
   Property development project
   The Group recognizes revenue from sale real estate project when the completion of project and the transfer significant risks
   and rewards of ownership of the real estate to the buyer in its entirety.
   Employee benefits
   Short-term benefits
   The Group recognizes salaries, wages, bonus and social security contribution as expenses on an accrual basis.
   Post-employment benefits - defined contribution plan
   The Company has established a provident fund that is a defined contribution plan. The assets of which are held in a separate
   trust fund. The provident fund is funded by the contribution from employees and the Company. Contributions to the provident
   fund are charged to the statement of income in the period to which they relate.
   Post-employment benefits - defined benefit plan
   The employee benefit liabilities in relation to the severance payment under the labor law are recognised as a charge to results
   of operations over the employee’s service period. It is calculated by the estimation of the amount of future benefit to be earned
   by the employee in return for the service provided to the Group through the service period up to the retirement age and the
   amount is discounted to determine the present value. The reference discount rate is the yield rate of government bonds as at
   the reporting date. The calculation is based on the actuarial technique using the Projected Unit Credit Method.
   When the employee benefits are improved, the portion of the increased benefit relating to past service rendered by employee
   is recognized in the statement of income on a straight-line basis over the average period until the benefits become vested.
   When the actuarial assumptions are changed, the Group recognizes actuarial gains (losses) in the profit or loss in the period
   in which they arise.




                                                                                                                          17
4. TRANSACTIONS WITH RELATED PARTIES
   The Company had transactions with related parties. These parties are related through common shareholders and/or
   directorships or close members of the family of an individual. The significant transactions with related parties as included
   in the financial statements were determined at prices in line with and occurring in the normal course of business based on
   the market price in general or the price as stipulated in the agreement if no market price existed.
   Significant transactions with related parties in the separate financial statements for each of the six-month periods ended
   June 30, 2011 and 2010 were as follows:
                                                                                                        (Unit: Thousands Baht)
                                                                                                        Separate
                                                                                                   financial statements
                                                                                                2011                2010
   Interest income
       Nattanant Development Co., Ltd.                                                                160                  127
   The significant balances of assets and liabilities with the related parties as at June 30, 2011 and December 31, 2010, were
   as follows:
                                                                                                        (Unit: Thousands Baht)
                                                               Consolidated                             Separate
                                                            financial statements                   financial statements
                                                         2011                2010               2011                2010
   Accrued income
      Nattanant Development Co., Ltd.                              -                  -                476                 317
   Trade accounts payable
      Superblock PCL.                                              -                  8                   -                  8
   Advance payable
      Director                                                8,092               7,018                   -                  -
   As at June 30, 2011, the Company had the construction contract with Super Speed Construction Co., Ltd. in the amount of
   Baht 30.68 million and progress billing in the amount of Baht 12.68 million. The remaining had not yet been constructed
   because the Company delayed launching of the project.




                                                                                                                      18
SHORT-TERM LOANS TO RELATED PARTY
Short-term loans to related party in the separate financial statements as at June 30, 2011 and December 31, 2010 consisted of:
                                                                                                             (Unit: Thousands Baht)
                                                                                                             Separate
                                                                                                        financial statements
                                                                                                     2011                2010
Nattanant Development Co., Ltd.                                                                           4,995              4,595

Movements of short-term loans to related party in the separate financial statements for each of the six-month periods
ended June 30, 2011 and 2010 were as follows:
                                                                                                  (Unit: Thousands Baht)
                                                                                                  Separate
                                                                                            financial statements
                                                                                         2011                2010
Beginning balance                                                                             4,595               3,530
Increase                                                                                        400                 990
Decrease                                                                                        -                   -
Ending balance                                                                                4,995               4,520

The Company had short-term loan that is a promissory note at call on demand to related party referred with the interest
rate of minimum loan rate (MLR) per annum, no guaranteed.
SHORT-TERM LOANS FROM RELATED PARTY
Short-term loans from related party as at June 30, 2011 and December 31, 2010 of:
                                                                                                             (Unit: Thousands Baht)
                                                                 Consolidated                                Separate
                                                              financial statements                      financial statements
                                                           2011                2010                  2011                2010
Director                                                     127,468               28,070              106,468               11,620




                                                                                                                             19
Movements of short-term loans from related party for each of the six-month periods ended June 30, 2011 and 2010 were as
follows:
                                                                                                    (Unit: Thousands Baht)
                                                           Consolidated                             Separate
                                                        financial statements                  financial statements
                                                     2011                2010              2011                2010
 Beginning balance                                       28,070               8,330            11,620               3,320
 Increase                                                99,398              10,710            94,848               4,950
 Decrease                                                   -                  (300)              -                  (300)
 Ending balance                                        127,468               18,740          106,468                7,970

The Company had short-term loans from related person in the amount of Baht 127.47 million in the consolidated financial
statements and in the amount of Baht 106.47 million in the separate financial statements, without agreement, no guaranteed
and interest charged.
I. T. E-Commerce Co., Ltd.’s land had been pledged as collateral against a loan from a financial institution of the Company
and without interest charged (see Note 14).
The major shareholder and the director of the Company were also guarantor against of company’s credit facility in the amount
of Baht 172.89 million (see Note 14) and without interest charged.
The major shareholder was guarantor against of company’s bank overdraft credit line in the amount of Bah t 20 million
(see Note 13) and without interest charge.
The major shareholder and the director of the subsidiary were also guarantor against of subsidiary’s credit facility in the
amount of Baht 90 million (see Note 14) and without interest charged.
The directors have guaranteed the credit facility for service contract in the amount of Baht 0.10 million and without interest
charged.




                                                                                                                    20
Key management personnel compensation
Key management personnel compensation for the six-month period ended June 30, 2011 consisted of:
                                                                                                   (Unit: Thousands Baht)
                                                                                                 Consolidated and Separate
                                                                                                    financial statements

Short-term benefits                                                                                                    2,872
Post-employment benefits                                                                                                  69
Total                                                                                                                  2,941



Directors’ remuneration
Directors’ remuneration represents benefits paid to the director of the Company in accordance with Section 90 of the Public
Company Limited Act, exclusive of salaries and related benefit payable to directors who hold executive positions.
For each of the six-month periods ended June 30, 2011 and 2010, the Company paid directors’ remuneration in the amount of
Baht 0.26 million and Baht 0.26 million, respectively.




                                                                                                                  21
   Nature of relationship
                 Name                     Country            Relation                            Type of relation
   Nattanant Development Co., Ltd.        Thailand   Subsidiary               Direct holding
   Superblock PCL.                        Thailand   Related company          Director and/or common shareholders of the family
   Super Speed Construction Co., Ltd.     Thailand   Related company          Director and/or common shareholders of the family
   I. T. E-Commerce Co., Ltd.             Thailand   Other related company    Director and/or common shareholders of the family
                                                                              until February 23, 2010

   Bases of measurement for intercompany revenues and expenses
                                                                                Pricing policies
   Interest income and interest expense               Referred with the commercial bank's interest rate.
   Purchase of goods and construction                 Construction price comparable to the market price from third parties.

5. CASH AND CASH EQUIVALENTS
   Cash and cash equivalents as at June 30, 2011 and December 31, 2010 consisted of:
                                                                                                        (Unit: Thousands Baht)
                                                               Consolidated                             Separate
                                                            financial statements                   financial statements
                                                         2011                2010               2011                2010
   Cash                                                          11                 59                   8                 46
   Savings deposits                                           4,329              5,741               4,300              5,494
   Current deposits                                             250              1,639                 241              1,628
   Total                                                      4,590              7,439               4,549              7,168




                                                                                                                      22
6. OTHER SHORT-TERM LOANS - NET
   Other short-term loans as at June 30, 2011 and December 31, 2010 consisted of:
                                                                                                    (Unit: Thousands Baht)
                                                                                         Consolidated and Separate
                                                                                           financial statements
                                                                                        2011                  2010
      Principal
        Hua Hin Kaset Resort Co., Ltd.                                                       72,816                72,816
        Royal Beach Condominium Co., Ltd.                                                       473                   473
        Country Management Co., Ltd.                                                            305                   305
      Total                                                                                  73,594                73,594
      Less Allowance for doubtful accounts                                                  (73,594)              (73,594)
      Net                                                                                        -                     -
      Accrued interest income
        Hua Hin Kaset Resort Co., Ltd.                                                       59,010                59,010
        Royal Beach Condominium Co., Ltd.                                                    58,622                58,622
        Country Management Co., Ltd.                                                            127                   127
      Total                                                                                 117,759               117,759
      Less Allowance for doubtful accounts                                                 (117,759)             (117,759)
      Net                                                                                        -                     -
      Other short-term loans - net                                                               -                     -

   The above companies represent past subsidiaries of the Company which were sold as investment since March 1, 2005.




                                                                                                                  23
7.   COST OF PROJECT DEVELOPMENT - NET
     Cost of project development as at June 30, 2011 consisted of:
                                                                                                                                                               (Unit: Thousands Baht)
                                                                                                         Consolidated financial statements
                                                                     My Villa           My Home          My Home              Royal Beach      My Home
                                                                     Bangna             Theparak        Suwintawong          Condominium       Chiangmai                 Total
     Cost
     As at January 1, 2011                                                254,956             35,381           576,184                 2,046        223,847                1,092,414
     Increase                                                                  -               1,236               -                     -              968                    2,204
     Decrease                                                            (230,329)           (19,381)              -                     -              -                   (249,710)
     As at June 30, 2011                                                   24,627             17,236           576,184                 2,046        224,815                  844,908
     Allowance for devaluation of project
     As at January 1, 2011                                                      (192)        (16,540)         (255,852)                  -                 -               (272,584)
     Increase                                                                     -               -                 -                    -                 -                     -
     Decrease                                                                     -            8,824                -                    -                 -                  8,824
     As at June 30, 2011                                                        (192)         (7,716)         (255,852)                  -                 -               (263,760)
     Net book value as at January 1, 2011                                 254,764             18,841           320,332                 2,046        223,847                   819,830
     Net book value as at June 30, 2011                                    24,435              9,520           320,332                 2,046        224,815                   581,148




                                                                                                                                                                         24
                                                                                                                                                                  (Unit: Thousands Baht)
                                                                                                                    Separate financial statements
                                                                              My Villa               My Home                 My Home              Royal Beach
                                                                              Bangna                 Theparak              Suwintawong            Condominium              Total
Cost
As at January 1, 2011                                                                254,956                  35,381              576,184                 2,046                868,567
Increase                                                                                  -                    1,236                  -                     -                    1,236
Decrease                                                                            (230,329)                (19,381)                 -                     -                 (249,710)
As at June 30, 2011                                                                   24,627                  17,236              576,184                 2,046                620,093
Allowance for devaluation of project
As at January 1, 2011                                                                    (192)               (16,540)            (255,852)                  -                 (272,584)
Increase                                                                                   -                      -                    -                    -                       -
Decrease                                                                                   -                   8,824                   -                    -                    8,824
As at June 30, 2011                                                                      (192)                (7,716)            (255,852)                  -                 (263,760)
Net book value as at January 1, 2011                                                 254,764                  18,841              320,332                 2,046                   595,983
Net book value as at June 30, 2011                                                    24,435                   9,520              320,332                 2,046                   356,333

Cost of development of all projects of the Company had been pledged as collateral against debts (see Notes 13 and 14).




                                                                                                                                                                             25
   As at June 30, 2011, the amounts of the sale according to the sale contracts were as follows:
                                                                                                                        (Unit: Thousands Baht)
                                                             The amount of the sale according to the sale contracts
                           Projects                              Amount                      % Per Total Sale              Total sale of project
   The Company
       My Villa Bangna                                                    735,419                            96.71                      760,429
       My Home Theparak                                                   513,943                            99.22                      517,961
       Royal Beach Condominium                                            180,879                           100.00                      180,879
        Total                                                           1,430,241                            98.01                    1,459,269
   Presently, the Company delayed the launching of My Home Suwintawong.
   Subsidiary
   Presently, the subsidiary is in the process of developing of My Home Chiangmai Project.
8. RESTRICTED BANK DEPOSITS
   Restricted bank deposits as at June 30, 2011 and December 31, 2010 consisted of:
                                                                                                                            (Unit: Thousands Baht)
                                                                         Consolidated                                         Separate
                                                                      financial statements                              financial statements
         To guarantee the following                 Note            2011              2010                            2011              2010
   1. Metropolitan Electricity Authority             17                   107              107                               107              107
   2. Loan from financial institution                14                     4                2                               -                -
       Total                                                              111              109                               107              107


9. INVESTMENTS IN SUBSIDIARY
   Investments in subsidiary stated by the cost method, as at June 30, 2011 and December 31, 2010 consisted of:
                                                                                                                             (Unit: Thousands Baht)
                                                                     Holding             Paid-up share capital                 Cost method
                   Subsidiary                       Type of business   %                 2011           2010                2011          2010
   Nattanant Development Co., Ltd.                     Property
   (1.5 million ordinary shares of Baht 100 each)    Development      99.99              150,000           150,000          122,906        122,906




                                                                                                                                          26
   As at June 30, 2011 and December 31, 2010, net book value of the subsidiary is less than the cost which the Company has
   invested. However, the management believes that the value of investment in such company will not permanent decrease, thus
   no allowance for impairment of investment is provided.
10. OTHER LONG-TERM INVESTMENTS - NET
   Other long-term investments as at June 30, 2011 and December 31, 2010 consisted of:
                                                                                                      (Unit: Thousands Baht)
                                                                                            Consolidated and Separate
                                                                           Holding             financial statements
                General investments               Type of business           %              2011                  2010
   Equity investment
   Country Finance and Securities Co., Ltd.      Financial institution       10.00              127,500              127,500
   The Bangkok Club Co., Ltd.                   Club and health center        0.14                1,000                1,000
   Total                                                                                        128,500              128,500
   Less Allowance for impairment of investments                                                (128,285)            (128,278)
   Other long-term investments - net                                                                215                  222

   Investment in ordinary shares of Country Finance and Securities Co., Ltd. was a financial institution which was closed down
   on December 8, 1997, at the cost of Baht 127.50 million. The Company provided an allowance for impairment of investments
   for the whole amount.
   Investment in ordinary shares of The Bangkok Club Co., Ltd. at the cost of Baht 1 million, the Company provided an
   allowance for impairment of investments for that amount due to consideration of the financial statements of such company.




                                                                                                                    27
11. BUILDING AND EQUIPMENT - NET
   Building and equipment as at June 30, 2011 consisted of:
                                                                                                                          (Unit: Thousands Baht)
                                                                          Consolidated financial statements
                                                                            Computer                            Construction
                                  Building            Office equipment      equipment         Equipment          in progress         Total
   Cost
   As at January 1, 2011                 389                   4,023              6,681                259              2,474            13,826
   Purchases/ transfers in             3,326                         43                  8                4               852             4,233
   Disposal/ transfers out               -                       -                  -                   (8)            (3,326)           (3,334)
   As at June 30, 2011                 3,715                   4,066              6,689                255                -              14,725
   Accumulated depreciation
   As at January 1, 2011                         78            2,962              6,438                156                -               9,634
   Depreciation                                  80              233                     57             17                -                  387
   Disposal/ transfers                       -                   -                   -                    (1)             -                   (1)
   As at June 30, 2011                   158                   3,195              6,495                172                -              10,020
   Net book value
   As at January 1, 2011                 311                   1,061                243                103              2,474             4,192
   As at June 30, 2011                 3,557                     871                194                 83                -               4,705




                                                                                                                                    28
                                                                                                                 (Unit: Thousands Baht)
                                                                                      Separate financial statements
                                                                                      Computer
                                                             Office equipment         equipment         Equipment                Total
Cost
As at January 1, 2011                                                  3,915                 6,633                167                 10,715
Purchases/ transfers in                                                 -                         7               -                           7
Disposal/ transfers out                                                 -                     -                   -                     -
As at June 30, 2011                                                    3,915                 6,640                 167                10,722
Accumulated depreciation
As at January 1, 2011                                                  2,940                 6,428                151                  9,519
Depreciation                                                             220                      52                   7                     279
Disposal/ transfers                                                     -                     -                   -                     -
As at June 30, 2011                                                    3,160                 6,480                 158                 9,798
Net book value
As at January 1, 2011                                                    975                     205                  16               1,196
As at June 30, 2011                                                      755                     160                   9                     924

                                                                                                                 (Unit: Millions Baht)
                                                                     Consolidated                                 Separate
                                                                  financial statements                       financial statements
                                                                 2011             2010                      2011             2010
Depreciation for each of the six-month periods ended
June 30 was included in administrative expenses                       0.39                  0.22                0.28                  0.19
As at June 30, 2011 and December 31, 2010
the cost amount before accumulated depreciation
which have been fully depreciated and still in use                    8.55                  7.81                8.55                  7.81
                                                                                                                           (Unit: Millions Baht)
                                                                                      As at June 30, 2011
                                                        Lessor               Period          Rate of service per month                Note
Memorandum of using area for office
   Everland Public Company Limited                   Other company          Unlimited                  0.10                              -




                                                                                                                                 29
12. INTANGIBLE ASSET - NET
   Intangible asset in the consolidated and separate financial statements as at June 30, 2011 consisted of:
                                                                                                        (Unit: Thousands Baht)
                                                                                                          Computer software
   Cost
   As at January 1, 2011                                                                                                1,459
   Purchases/ transfers in                                                                                                -
   Disposal/ transfers out                                                                                                -
   As at June 30, 2011                                                                                                  1,459
   Accumulated amortization
   As at January 1, 2011                                                                                                  219
   Amortization                                                                                                             72
   Disposal/ Transfers                                                                                                    -
   As at June 30, 2011                                                                                                    291
   Net book value
   As at January 1, 2011                                                                                                1,240
   As at June 30, 2011                                                                                                  1,168

                                                                                                          (Unit: Millions Baht)
                                                                                         Consolidated and Separate
                                                                                            financial statements
                                                                                       2011                      2010
   Amortization for each of the six-month periods ended
   June 30 was included in administrative expenses                                               0.07                     0.07

13. BANK OVERDRAFT
   The Company has a bank overdraft credit line in the amount of Baht 20 million, with interest charged at the rate of minimum
   overdraft rate (MOR) per annum. The bank overdraft is guaranteed by the project assets (see Note 7) and guaranteed by the
   major shareholder (see Note 4).




                                                                                                                          30
14. LOANS FROM FINANCIAL INSTITUTIONS
   Loans from financial institutions as at June 30, 2011 and December 31, 2010 consisted of:
                                                                                                           (Unit: Thousands Baht)
                                                                   Consolidated                              Separate
                                                                financial statements                   financial statements
                                                             2011                2010                2011               2010
   Loans from financial institutions                           186,887             338,465              96,887            248,465
   Less Current portion                                        (90,000)           (338,465)                -             (248,465)
   Long-term loans from financial institution                    96,887                -                96,887                -

   The details of the loans are summarized as follows:
                                Millions Baht
                     Credit line              Principal                                   Referred
     Lender
                  2011        2010        2011        2010               Period           Interest              Repayment
   The Company
   Bank        -              203.99       -             76.32 Jun. 2010 - Aug. 2011          MLR     Payback for the principal when
                                                                                                      releasing the mortgage of the
                                                                                                      assets in the projects.

   Bank           172.89      172.89      96.89      172.15 Jun. 2010 - Sep. 2013             MLR     Payback for the principal when
                                                                                                      releasing the mortgage of the
                                                                                                      assets in the projects.

   Bank             -          33.00       -             -       Matured in May 2011          MLR     Payback for the principal when
                                                                                                      releasing the mortgage of the
                                                                                                      assets in the projects.

   Total          172.89     409.88       96.89      248.47

   Subsidiary
   Bank             90.00      90.00      90.00          90.00 Jun. 2010 - May 2011           MLR     Payback for the principal when
                                                                                                      releasing the mortgage of the
                                                                                                      assets in the project.

   Total          262.89     499.88      186.89      338.47




                                                                                                                            31
Movements of loans from financial institutions for each of the six-month periods ended June 30, 2011 and 2010 were as
follows:
                                                                                                       (Unit: Thousands Baht)
                                                             Consolidated                              Separate
                                                          financial statements                    financial statements
                                                       2011                2010                2011                2010
Beginning balance                                        338,465              389,494            248,465              299,494
Increase                                                      -                   -                   -                   -
Decrease                                                (151,578)            (23,171)           (151,578)            (23,171)
Ending balance                                           186,887             366,323              96,887             276,323

The Company
The Company had a credit line for the letter of guarantee issued by the bank in the amount of Baht 3.53 million (see Note 17).
The Company entered into an additional attachment memorandum of loan agreement with a bank to extend the maturity of the
agreement in several times, for the latest on June 20, 2011, the maturity is extended to September 30, 2013. However, the fine
for the overdue payments has been waived and the interest is the normal rate during the process of entering the additional
attachment memorandum of loan agreement.
The loans and the letter of guarantee issued were collateralized by the projects' assets (see Note 7) and guaranteed by the
major shareholder and the director (see Note 4).
Other related company’s land had been mortgaged as collateral against loan from financial institution in order to substitute
part of the Company’s land that was devoted to public utilization and guaranteed credit line. (see Note 4).
Subsidiary
The subsidiary entered into an additional attachment memorandum of loan agreement with a bank for extending the term of
repayment in several times, for the latest, on July 26, 2011, the maturity is extended to May 31, 2013. The bank had increase
the loan for the subsidiary’s project in the amount of Baht 75 million (see Note 7). The fine for the overdue payments has been
waived and the interest is the normal rate during the process of entering the additional attachment memorandum of loan
agreement.
The above loan of the subsidiary was collateralized by the subsidiary’s bank deposits (see Note 8), the projects’ asset (see
Note 7) and guaranteed by the major shareholder and the director of the subsidiary (see Note 4).




                                                                                                                     32
15. ADVANCES RECEIVED FROM CUSTOMERS
   The Company entered into sales contract to sell office suites for 10 contracts in the total amount of Baht 436.11 million and
   received down payment of 20% at the contract date. The remaining was paid by installment was payable monthly. The
   ownership will be transfer to the buyer when the Company has received fully amount and the buyer has required.
   The Company received fully amount under sales contract for 3 contracts in the total amount of Baht 116.42 million
   On December 27, 2010, the buyers have requested to extend the installment, the latest, for 7 contracts with the total
   outstanding balance at contract date in the amount of Baht 104.85 million. The payment by installment is payable monthly in
   7 installments, comprised of the first to sixth installments totaling the amount of Baht 9 million and the seventh installment
   in the amount of Baht 95.85 million.
   In the second quarter 2011, the buyer entered into an attachment memorandum for the transfer of right in accordance with the
   sales contract to sell to Bangna Asset Co., Ltd. As a result, the Company entered into sales contract to transfer ownership of
   office suites to Bangna Asset Co., Ltd. and have received the remaining payment amount in full. Therefore, the Company has
   recognized revenue in the second quarter 2011 in the amount of Baht 436.11 million.
16. EMPLOYEE BENEFITS
   Movement of the present value of employee benefit obligation for the six-month period ended June 30, 2011 as follows:
                                                                                                            (Unit: Thousands Baht)
                                                                                                       Consolidated and Separate
                                                                                                          financial statements
   Post-employment benefit plan
   Present value of employee benefit obligation as at January 1                                                                982
   Employee benefit expenses in the statement of comprehensive income :
       Current service cost                                                                                                      76
       Interest cost                                                                                                             19
       Actuarial gains                                                                                                           (3)
   Present value of employee benefit obligation as at June 30                                                                 1,074

   Employee benefit liabilities in the statement of financial position as at June 30, 2011 consisted of:
                                                                                                            (Unit: Thousands Baht)
                                                                                                       Consolidated and Separate
                                                                                                          financial statements
   Post-employment benefit plan
   Present value of obligation                                                                                                1,074
   Employee benefit liabilities - recognised in the statement of financial position                                           1,074




                                                                                                                         33
   The Company made defined benefit plan in accordance with severance payment as the labor law which entitled retired
   employee within work service period in various rates, such as more than 10 years to receive severance payment not less than
   300 days or 10 months of the last month salary.
17. COMMITMENTS AND CONTINGENT LIABILITIES
   Commitments and contingent liabilities as at June 30, 2011 consisted of:
   The Company
   17.1 Commitments from a letter of guarantee issued by bank for the public utility in the amount of Baht 3.63 million
        (see Notes 8 and 14).
   17.2 Commitments for payment under agreement as follows:
          17.2.1 Payment under construction contracts
                    - Related company in the amount of Baht 18 million (see Note 4).
                    - Other company in the amount of Baht 0.86 million.
          17.2.2 Payment under compensation from using area in the amount of Baht 0.10 million per month (see Note 11).
   Subsidiary
   17.3 Commitments for payment under agreement as follows:
          17.3.1 Payments under construction contracts in the amount of Baht 0.27 million.
          17.3.2 Payment under service contract in the amount of Baht 0.06 million.
18. FINANCIAL INSTRUMENTS
   18.1 Accounting policies
          Details of significant accounting policies, methods adopted, including the basis on which income and expenses are
          recognized, in respect of each class of financial assets or financial liabilities are disclosed in Note 3.
   18.2 Capital management
          The Board of Directors’ policy is to maintain a strong capital base so as to maintain investor, creditor and market
          confidence and to sustain future development of the business. The Board monitors the return on capital, which the
          company defines as result from operating activities divided by total shareholders’ equity and also monitors the level of
          dividends to ordinary shareholders.




                                                                                                                        34
   18.3 Financial risk management policies
          The Company is exposed to the fluctuations in interest rate in the market and the risks from default of the agreement
          by counterparties. The Company has risk management polices as follows
          18.3.1 Interest rate risk
                    Interest rate risk occurs when the value of financial instruments change in line with the fluctuation of market
                    interest rates.
                    The Company borrowed loans for use in the operations and the project development with interest payments
                    at floating rates. The Company does not use any financial instruments to reduce the uncertainty of future
                    cash flows that may occur from changes of interest rates.
          18.3.2 Credit risk - trade accounts receivable
                    The Company has a policy on hedging credit risk from trade accounts receivable by forming a conservative
                    credit policy and determining the method of receipt from the sales of project assets. Therefore, the Company
                    expects that the loss from the collection of those trade accounts receivable should not exceed the provision
                    for doubtful accounts.
          18.3.3 Fair value
                    Since most of the financial assets and financial liabilities are short-term and long-term loans baring market
                    interest rates, the management of the Company believes that the fair value of such financial assets and
                    financial liabilities will not be materially different from their book value.
19. APPROVAL OF THE INTERIM FINANCIAL STATEMENTS
   These interim financial statements have been approved for issue by the Company’s Board of Directors on August 10, 2011.




                                                                                                                         35

								
To top