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บรษิทั เหมราชพฒันาทีด่นิ จำกดั (มหาชน) Hemaraj Land and Development Public Company Limited
บรษิทั เหมราชพฒันาทีด่นิ จำกดั (มหาชน) Hemaraj Land and Development Public Company Limited
ชัน้ 18 อาคารยเูอม็ทาวเวอร ์เลขที ่9 ถนนรามคำแหง สวนหลวง กรงุเทพมหานคร 10250 โทรศพัท ์: 66-2719-9555 โทรสาร : 66-2719-9546-7 18th Fl., UM Tower, 9 Ramkhamhaeng Rd., Suangluang, Bangkok 10250 THAILAND Tel : 66-2719-9555 Fax : 66-2719-9546-7 e-mail : [email protected], www.hemaraj.com, www.theparkresidence.co.th Registration No. : BORMORJOR.0107536000676 ทะเบียนเลขที่ : บมจ.0107536000676
ร า ย ง า น ป ร ะ จํ า ปี 2 5 4 9 A n n u a l R e p o r t 2 0 0 6
WORLD CLASS INDUSTRIAL ESTATES,
UTILITIES, SME FACTORIES AND SERVICES
บริษ
ัท เห
มราช
พัฒ
นาท
ี่ดิน จำก
ัด (ม
หาช
น) ราย
งานประจำป
ี 2549 1 A
nnual R
eport 2006 H
em
ara
j Land a
nd D
evelo
pm
ent P
ublic
Com
pany Lim
ited
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Corporate Vision
To create long-term shareholder value achieved through focused appropriate strategic, business,
governance, and financial disciplines.
Mission
This long-term value can be realized by demonstrating and communicating respect for our customers,
shareholders, employees, and stakeholders while consistently behaving in a manner that is communally,
ethically, and environmentally responsible.
Hemaraj Strategy
1. Developing complementary property, utility and infrastructure customer solutions that have
predictable growing revenue and superior profit opportunities in order to optimize shareholder value from our 5
business lines.
a. Industrial Estate Development
b. Industrial Estate Utilities
c. Other Utilities and Industrial Services
d. SME Factories for Rent and Sale
e. Property Projects
2. Leveraging management expertise in property, utilities infrastructure and environmental competence.
3. Utilizing company financial strength for investment opportunities.
Corporate Vision, Mission & Strategy
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Financial Highlights
12,000
9,600
7,200
4,800
2,400
Total Assets Total Liabilities
Total Assets and Total Liabilities(Million Baht)
Total Revenue Composition(Million Baht)
Net Income(Million Baht)
Net Debt to Equity(Times)
0
2004
8,062
2,822
8,960
3,390
4,368
11,453
2005 2006 Year
1.00
0.8
0.6
0.4
0.2
0
2004
0.350.41
0.45
2005 2006 Year
5,000
4,000
3,000
2,000
1,000
Operating Revenue
Sale of Undeveloped Property Other Revenues
0
2004
2,414
249
2,930
80
3,775
303.9
1,071
2005 2006 Year
1,500
1,200
900
600
300
0
2004
951
637
1,191
2005 2006 Year
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Key Financial Ratios 2004 2005 2006
Current Ratio (Times) 4.91 4.86 6.23
Net Debt to Equity (Times) 0.35 0.41 0.45
Return on Assets 12% 7% 9%
Return on Equity 19% 12% 15%
Net Profit Margin 26% 21% 29%
Book Value per Share (Baht) 0.90 0.91 0.78
Fully Diluted Book Value per Share (Baht) 0.65 0.68 0.75
No. of Shares Outstanding (Million Shares) 5,831.79 6,090.75 9,036.93
Key Financial Figures
(Million Baht) 2004 2005 2006Sales and Services Revenue 2,414 2,930 3,776
Industrial Estate Land Sales 1,481 1,117 959
Industrial Estate Utility 430 458 585
SME Factory (Sales) 23 201 178
SME Factory (Rental) 122 153 161
Utilities/Infarstructure 46 94 141
Residential 311 907 1,720
Other Land Sales 32
Sales of Undeveloped Property 1,071 - -
Total Revenue 3,734 3,010 4,079
Gain from Extraordinary Items 126 - 86
Net Income 951 637 1,191
Total Assets 8,062 8,960 11,453
Total Liabilities 2,822 3,390 4,368
Total Shareholder’s Equity 5,240 5,570 7,085
Earning Per Share (Baht) 0.17 0.11 0.16
Par (Baht) 1 1 1
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Message from the Board of Directors
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We are pleased to report that Hemaraj Land And Development Public Company Limited ended the Year
2006 with record top line revenue and bottom line profitability despite both uncertain global conditions and local
political constraints. For the Year 2006, Hemaraj Total Operating Revenue from core businesses was Baht 3,775
million versus Baht 2,930 million in 2005, or a 29 % improvement demonstrating the breadth of the revenue.
Total Revenue reported for the Year 2006 was Baht 4,079 million versus Baht 3,010 million, an increase of 36%.
2006 Total Net Income was Baht 1,191 million, an increase of 87% in total from the previous year. Net
Operating Income, excluding non-operating items was Baht 972 million, representing a 67% improvement over
the previous year. Operating Gross Margin was 45 % with the EBITDA Margin improved to 35 %, both levels
exceeding average industry margins.
Financially, Hemaraj has maintained a strong balance sheet and cash flexibility to fund our growth
plans. Hemaraj reported 2006 Year-end Total Assets of Baht 11,453 million including Baht 1,150 million in
cash. Total Liabilities were Baht 4,368 million with Total Shareholders Equity of Baht 7,085 million. The Net Debt
to Equity ratio was only 0.45 to 1 times.
The broadened property development strategy of Hemaraj increases the predictability of the revenue
and subsequently the earnings and margin performance of the company. In 2006, revenue from Industrial
Estate Utilities and The Park Chidlom condominium broadened the revenue base. The Park Chidlom sales
through 2006 were 182 units with a value of Baht 4,766 million of which Baht 2,938 million in revenue was
realized through 2006. Completion and Transfer will be from the second quarter of 2007.
For Industrial Estate Land Sales, Hemaraj ended the Year 2006 being # 1 in Market Share with
712 rai, 24 new customers and 25 project expansions from existing customers. Hemaraj customers, with
an estimated combined Investment of USD 11.5 billion, are with 113 customers in our “Detroit of the East”
automotive cluster. The year 2006 also witnessed continued petrochemical investments as well as
electronics, logistics, metal, plastics and others.
The Hemaraj strategy is to develop complementary property utility and infrastructure customer
solutions, that have predictable growing revenue and superior profit opportunities, in order to optimize
shareholder value. The Management and the Board of Directors are grateful to our stakeholders for entrusting
us with this responsibility.
Sawasdi HorrungruangChairman of the Board
of Directors 16 March 2007
David R. NardonePresident & ChiefExecutive Officer16 March 2007
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Audit Committee Report
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The Audit Committee of Hemaraj Land and Development Plc was set up in accordance with the resolution of Extraordinary General Meeting of Shareholders No.1/1999. The Committee comprises the following members :- 1) Mr.Sudhipan Charumani Committee Chairman and Independent Director 2) Mr.Peter J. Edmondson Independent Director 3) Mrs.Punnee Worawuthichongsathit Independent Director In spite of the Country’s economic and political disruptions, Hemaraj Land And Development Plc continued to enjoy TRIS’s “BBB+” investment rating, with a given “stable outlook” for the coming year. This February 2007 announcement not only reaffirms the Company’s and its Management’s strong capability in their chosen fields of operation, but also classifies the Company’s prevailing financial position and policy as positive. On the audit side, the 2006 internal audit program, which had been jointly considered and approved by the Audit Committee and the Management (with a capable outsourced internal audit firm as the program operator), found no material weaknesses or errors during the course of the audit, while the external auditor, Professor Kesree Narongdej of A.M.T & Associates, gave the Company an unqualified 2006 report for both its financial statements and internal control adequacy. As for the Audit Committee, four formal meetings were held in relation to the 2006 data, with participation by A.M.T representatives, the internal audit team, an outsourced legal advisor, and relevant senior Management personnel. Each such meeting would focus on the review of the Company’s respective quarterly financial statements, inclusive of the consolidated version, as well as covering areas of internal control reliability and good governance practice. A particular emphasis would also be given on issues of related party transactions and contingent liabilities to ensure adequacy of information disclosure and provisions thereon. It should be hereby mentioned that the Board of Directors at its Meeting on February 27th, 2007 resolved to set up a Good Corporate Governance Committee and a Nomination Committee, to be operative in 2007. To the best of the Committee’s knowledge, the financial statements presented in the Company’s 2006 Annual Report are fair and accurate. As Professor Kesree Narongdej of A.M.T & Associates has completed a continuous five-year period as the Company’s and its subsidiaries’external auditor, a change of person is required under the SEC’s regulations. The Audit Committee, after consulting with other Board members and A.M.T personnel, found it appropriate to recommend to the Board, for proposal to the Annual General Meeting of Shareholders, that Mrs.Natsarak Sarachanunjeen, Certified Public Accountant No.4563 of A.M.T & Associates, be appointed as the Company’s and its subsidiaries’external auditor for the Financial Year ending December 31st, 2007, at a remuneration of Baht 1,070,000.- for HRD and consolidation work and Baht 2,060,000.- for all its subsidiary companies ( being Baht 950,000.- and Baht 1,960,000.- respectively in 2006). The requested increments are largely due to increased work volume.
Sudhipan Charumani Chairman of the Audit Committee March 1st ,2007
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Information of Board of Directors, and Management of Hemaraj Land and Development Public Company Limited
Mr. Sawasdi Horrungruang Chairman of the Board, Chairman of the Executive Committee
Age: 66 YearsEducation / IOD Training: Honorary Doctorate Degree, Bachelor Degree of Business Administration Humanity Faculty, Burapha University DAP certificate from The Thai Institute of Directors Association (IOD)Present Positions: • President Thai Industrial Estate Association.• Chairman Sun Tech Group PCL.• Chairman Sriracha Harbour PCL.• Chairman The Park Residence Co., Ltd.• Chairman Hemaraj Eastern Seaboard Industrial Estate Co.,Ltd.• Chairman Eastern Industrial Estate Co.,Ltd.• Vice Chairman / Eastern Seaboard Industrial Estate (Rayong) Co.,Ltd. Executive Director• Chairman Eastern Pipeline Services Co.,Ltd.• Chairman Hemaraj International Co., Ltd.• Director H-International (BVI) Co., Ltd.• Chairman Hemaraj Water Co., Ltd.• Chairman SME Factory Co., Ltd.• Chairman Glow Hemaraj Energy Co., Ltd. % Hemaraj Stock Held as of 31/12/2006: 0.72%
Mr. Thavorn Anankusri Director and Vice Chairman of Executive Committee
Age: 65 YearsEducation / IOD Training: DAP and DCP certificate from The Thai Institute of Directors Association (IOD) Present Positions: • Advisor Private Sector% Hemaraj Stock Held as of 31/12/2006: 0.18%Note: resigned from Directorship on February 1st 2007
Mr. Sudhipan Charumani Independent Director and Chairman of the Audit Committee
Age: 63 YearsEducation / IOD Training: Institute of Chartered Accountants in England and Wales DAP, DCP and Audit Committee certificate from The Thai Institute of Directors Association (IOD) Present Positions: • Independent Director Hemaraj Eastern Seaboard Industrial Estate Co., Ltd.• Director Vasupak Associates Co., Ltd.% Hemaraj Stock Held as of 31/12/2006: 0.00%
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Mr. Vivat Jiratikarnsakul Director and Executive Director
Age: 51 YearsEducation / IOD Training: Bachelor of Sanitary, Faculty of Engineering, Chulalongkorn University DAP and DCP certificate from The Thai Institute of Directors Association (IOD) Present Positions: • Director Eastern Industrial Estate Co., Ltd.• Executive Director Eastern Seaboard Industrial Estate(Rayong) Co., Ltd. and Director• Director Hemaraj Eastern Seaboard Industrial Estate Co., Ltd.• Director Elyo-H Facilities Management Ltd.• Director H-Construction Management and Engineering Co., Ltd• Director The Park Residence Co., Ltd.• Director Eastern Pipeline Services Co., Ltd.• Director Hemaraj International Co., Ltd.• Director H-International (BVI) Co., Ltd.• Director Hemaraj Water Co., Ltd.• Director SME Factory Co., Ltd.• Director Rayong Industrial Land Co., Ltd.• Director S I L Industrial Land (Saraburi) Co., Ltd.• Director Glow Hemaraj Energy Co., Ltd.% Hemaraj Stock Held as of 31/12/2006: 0.09%
Mr. Thongchai Srisomburananont Director and Vice Chairman of Executive Committee
Age: 54 YearsEducation: Junior High School, Rojseri-Anusorn SchoolPresent Positions: • Director Hemaraj International Co., Ltd.• Director Eastern Industrial Estate Co., Ltd.• Director Leave Smart Co., Ltd.% Hemaraj Stock Held as of 31/12/2006: 0.07%
Mr. David Richard Nardone Director and Executive Director
Age: 52 YearsEducation / IOD Training: MBA, Northeastern University, Boston, USA DCP certificate from The Thai Institute of Directors Association (IOD) Present Positions: • Chairman Elyo-H Facilities Management Ltd.• Director Eastern Pipeline Services Co.,Ltd.• Chairman H-Construction Management and Engineering Co.,Ltd• Director The Park Residence Co., Ltd.• Executive Director Eastern Seaboard Industrial Estate(Rayong) Co.,Ltd. and Director• Director Eastern Industrial Estate Co.,Ltd.• Director Hemaraj Eastern Seaboard Industrial Estate Co.,Ltd.• Director Glow Co.,Ltd.• Director Hemaraj International Co., Ltd.• Director H-International (BVI) Co., Ltd.• Director Hemaraj Water Co., Ltd.• Director SME Factory Co., Ltd.• Director Rayong Industrial Land Co., Ltd.• Director S I L Industrial Land (Saraburi) Co., Ltd.• Director Glow Hemaraj Energy Co., Ltd.% Hemaraj Stock Held as of 31/12/2006: 0.38%
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Ms. Pattama Horrungruang Director and Executive Director
Age: 45 YearsEducation / IOD Training: MBA, Thammasat University DAP and DCP certificate from The Thai Institute of Directors Association (IOD) Present Positions: • Director Eastern Industrial Estate Co., Ltd.• Director Hemaraj Eastern Seaboard Industrial Estate Co., Ltd.• Executive Director and Director Eastern Seaboard Industrial Estate (Rayong) Co., Ltd.• Director The Park Residence Co., Ltd.• Director Elyo-H Facilities Management Co., Ltd.• Director Hemaraj Water Co., Ltd.• Director SME Factory Co., Lt.% Hemaraj Stock Held as of 31/12/2006: 0.00%
Mr. Somphong Wanapha Independent Director
Age: 63 YearsEducation / IOD Training: MBA, Finance, Michigan State University, USA (Royal Thai Government Scholarship) DCP certificate from The Thai Institute of Directors Association (IOD)Present Positions: • Chairman of the Audit Committee Government Savings Bank• Director State Enterprise Performance agreement Evaluation Committee, Ministry of Finance• Chairman of the Audit Committee Prasit Patana PCL.• Chairman Executive Board on M.B.A. Program, Thammasat University• Chairman Public Warehouse Organization, Ministry of Commerce• Director Sahapatana Interholding PCL.Previous Positions: • Secretary General Thailand Board of Investment% Hemaraj Stock Held as of 31/12/2006: 0.00%
Mr. Peter John Edmondson Independent Director and Member of the Audit Committee
Age: 57 YearsEducation: Bachelor of Science in Chemistry (Honor), University of Sheffield, EnglandPresent Positions: • Investor Consultant Private Sector% Hemaraj Stock Held as of 31/12/2006: 0.05%
Mrs. Punnee Worawuthichongsathit Independent Director and Member of the Audit Committee
Age: 55 YearsEducation / IOD Training: Master in Accounting, Chulalongkorn University DAP, DCP and Audit Committee certificate from The Thai Institute of Directors Association (IOD) Present Positions: • Independent Director / TT&T PCL. Member of the Audit Committee • Independent Director / The Brooker Group PCL. Member of the Audit Committee • Independent Director / GM Multimedia PCL. Member of the Audit Committee % Hemaraj Stock Held as of 31/12/2006: 0.00%
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1 Mr. David Richard Nardone Age 52 Year Joined Hemaraj 1993 Education • MBA, Northeastern University, Boston, USA Position at Hemaraj • Director / Executive Director / Managing Director Hemaraj Stock Held as of 31/12/2006: 0.38%
2 Mr. Vivat Jiratikarnsakul Age 51 Year Joined Hemaraj 1989 Education • Bachelor of Sanitary, Faculty of Engineering, Chulalongkorn University Position at Hemaraj • Director / Executive Director / Deputy Managing Director Hemaraj Stock Held as of 31/12/2006: 0.09%
3 Ms. Pattama Horrungruang Age 45 Year Joined Hemaraj 2003 Education • MBA, Thammasat University Position at Hemaraj • Director / Executive Director / Deputy Managing Director Hemaraj Stock Held as of 31/12/2006: 0.00%
4 Ms. Somjai Wachiraha Age 46 Year Joined Hemaraj 1990 Education • Bachelor of Business Administration, General Affairs, Ramkhamhaeng University Position at Hemaraj • Director - Finance Hemaraj Stock Held as of 31/12/2006: 0.00%
5 Ms. Jinnapat Tongviseskul Age 37 Year Joined Hemaraj 1993 Education • MBA, Economic & Administration, Chulalongkorn University Position at Hemaraj • Director - Residential Customer Development Hemaraj Stock Held as of 31/12/2006: 0.00%
6 Ms. Anchalee Parsertchand Age 37 Year Joined Hemaraj 2001 Education • MBA, Assumption University and MA, Japanese, Keio University, Tokyo, Japan Position at Hemaraj Director - Industrial Customer Development Hemaraj Stock Held as of 31/12/2006: 0.00%
7 Mr. Niphone Harnpatanapanich Age 49
Year Joined Hemaraj 2003 Education • MBA, Chulalongkorn University Position at Hemaraj • Director - Residential Project Planning Hemaraj Stock Held as of 31/12/2006: 0.00%
8 Mr. Apichat Trongsukson Age 42 Year Joined Hemaraj 1994 Education • MBA, Nida University Position at Hemaraj • Assistant Director - Information System & Services Hemaraj Stock Held as of 31/12/2006: 0.00%
9 Ms. Chantana Hinkaew Age 37 Year Joined Hemaraj 2004 Education • MBA, University of Nottingham, UK Position at Hemaraj • Director - Corporate Marketing Hemaraj Stock Held as of 31/12/2006: 0.00%
10 Ms. Ladda Rojanavilaivudh Age 39 Year Joined Hemaraj 2001 Education • MBA, Bangkok University and MA, Nara Women University, Nara, Japan Position at Hemaraj • Director - Industrial Customer Development Hemaraj Stock Held as of 31/12/2006: 0.00%
11 Mr. Tanin Subboonrueng Age 43 Year Joined Hemaraj 1996 Education • MBA, Business Administration, Assumption University Position at Hemaraj • Director - Industrial Estate Development Hemaraj Stock Held as of 31/12/2006: 0.00%
12 Mr. Sirisak Kijruksa Age 46 Year Joined Hemaraj 1990 Education • Bachelor of Accounting, Bangkok University Position at Hemaraj • Director - Accounting Hemaraj Stock Held as of 31/12/2006: 0.00%
13 Mr. Paopitaya Smutrakalin Age 36 Year Joined Hemaraj 1996 Education • MS, Finance, Drexel University, Philadelphia, USA Position at Hemaraj • Director - Planning & Investor Relations Hemaraj Stock Held as of 31/12/2006: 0.00%
Mr. Khamhoung Ratsamany Age 40 Year Joined Hemaraj 1995 Education • MBA, Bangkok University Position at Hemaraj • Director - Industrial Estate Operations Hemaraj Stock Held as of 31/12/2006: 0.00% (Not in the picture)
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Hemaraj Land andDevelopment Plc.
Hemaraj International Co., Ltd.
H-International (BVI) Co., Ltd.
Eastern Industrial Estate Co.,Ltd.
Eastern Pipeline Services Co.,Ltd.
Eastern Seaboard Industrial Estate (Rayong) Co.,Ltd.
H-Construction Management and Engineering Co.,Ltd .
The Park Residence Co., Ltd.
Hemaraj Eastern Seaboard Industrial Estate Co.,Ltd.
Hemaraj Water Co., Ltd.
SME Factory Co., Ltd.
Elyo-H Facilities Management Ltd.
Rayong Industrial Land Co., Ltd.
S I L Industrial Land (Saraburi) Co., Ltd.
Glow Hemaraj Energy Co., Ltd.
Nam
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Subs
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Asso
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The Company’s Business Profile
Hemaraj Land And Development Public Company Limited is Thailand’s leading developer in industrial estates, utilities, property, and infrastructure. Established in 1988 and listed on the Stock Exchange of Thailand in 1992, today Hemaraj has 4 Industrial Estates and 2 Industrial Zones (from April 2005) under development and management of 32,130 rai mostly in the heart of the Eastern Seaboard Area of Thailand. These are Hemaraj Chonburi Industrial Estate, Eastern Seaboard Industrial Estate (Rayong), Hemaraj Eastern Industrial Estate (Map Ta Phut), Hemaraj Eastern Seaboard Industrial Estate, S I L Industrial Land (Saraburi), and Rayong Industrial Land. To date, there are 335 industrial customers and 113 customers in “Detroit of the East” automotive cluster with over US$ 11.5 billion of customer investment. Hemaraj also strategically expanded into complementary businesses including industrial estate utilities, SME factories for rent and sale, and other utilities and industrial services. Besides these businesses, Hemaraj has broadened into condominium development, “The Park Childom”, the exclusive high-rise residential condominium in the center of downtown Bangkok.
Hemaraj Strategy is to create a long-term shareholder values achieved through focused appropriate strategic, business, governance, and financial disciplines. This long-term value can be realized by demonstrating and communicating respect for our customers, employees, and stakeholders while consistently behaving in a
manner that is communally, ethically, and environmentally responsible.
Industrial Estate Development
Hemaraj’s Industrial Estates as of December 31, 2006
Industrial Estates/ Industrial Land Location BOI Zone Total No. of Land Sales Project Customers in 2006 Area (rai) (rai)
1. Hemaraj Chonburi Industrial Estate Chonburi 2 3,993 47 53
2. Hemaraj Eastern Industrial Estate Rayong* 3 2,976 34 379
3. Eastern Seaboard Industrial Estate (a) Rayong* 3 8,628 188 233
4. Hemaraj Eastern Seaboard Rayong*/ 2 and 3 9,476 1 5 Industrial Estate Chonburi
5. SIL Industrial Land (b) Saraburi 2 3,619 46 22
6. Rayong Industrial Land (b) Rayong* 3 3,438 19 20
Total 32,130 335 712
Notes: (a) 60:40 Joint Venture with Siam Food Products Plc. (b) 25:75 Joint Venture with Cementhai Property (2001) Plc., a subsidiary of The Siam Cement Plc. * with BOI Zone 3 grandfathered privilege until 2009
Industrial Estate Utilities
As an industrial estate utility
service provider, Hemaraj provides
dependable utility solutions to industrial
customers around the clock, 24 hours
7 days a week. Hemaraj manages the
industrial estate property and private
utilities to allow customers to optimize their
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efforts in manufacturing. In waster including raw water, treated potable water, and clarified water provision, Hemaraj
is Thailand’s largest private provider with 100,000 cubic meters per day provided as well as 50,000 cubic meters per
day of waste water treated. In industrial estate management, Hemaraj achieved ISO 14001, ISO 9001:2000 and the
Best Environmental Management EIA
awards from the Ministry of Sciences,
Technology and Environment.
SME Factories for Rent and Sales
Hemaraj designs and develops
turnkey and expandable SME factories
sizing from 750 square meters to 7,500
square meters for rent and sales. They are located in both General Industrial Zone and Duty Free Zone in multiple
industrial estates/zones of Hemaraj. H-Construction Management and Engineering, Hemaraj’s subsidiary company,
can also manage the utility and fit-out requirements to fit customers needs. This rental of SME factories provides
customers flexibility on investment and financing as well as a growth path to larger buildings or developed land
as their business expands. Hemaraj has built over 180,000 square meters to date in its multiple industrial estate
locations.
Other Utilities and Industrial Services
Utilities and Industrial Services assist the customers in benefiting
from the shared resources and utility expertise of Hemaraj and its global
partners. These capabilities extend beyond Hemaraj’s industrial estates
and leverage technical resources.
Power: - Glow Hemaraj Energy Company Limited: a 50/50 Joint Venture Development Company for Independent
Power Producer (IPP) bidding with Thailand’s largest private power provider of 1,670 MW, Glow Energy.
With a successful track record in power development SPP and IPP with Glow, a Suez Energy Group,
formally named Tractebel, Belgium and a ten years relationship, Hemaraj sees this opportunity to enter
in IPP Bidding Projects to supply power to Electricity Generating Authority of Thailand (EGAT) in this
near future.
- Hemaraj holds 5% equity in Glow IPP, the 713 MW IPP Power Project locating in Hemaraj Chonburi
Industrial Estate
Water: - Hemaraj Water Company Limited: a 100% subsidiary company to develop and manage Water Resources
to provide treated water and waste water treatment to industrial customers. Baht 150 million has been
invested in Clarified Water Plant with a treatment capacity of 43,200 cubic meter per day with 10,000
cubic meter storage tanks in Hemaraj Eastern Industrial Estate in 2006.
Other Utilities and Services: - Elyo-H Facilities Management Limited: a 40/60 Joint Venture with Suez Energy and Teo Hong Silom to
provide utility and facility management services to industrial customers. Major customers are ESSO,
Shell, Caltex, GE Plastic, Glow IPP, Glow SPP, Toyoda, Vinythai, Lite On and Saint-Gobain Sekurit.
- Eastern Pipeline Services Company Limited: a 100% subsidiary company to provide piping distribution
for Chemical, Stream and Industrial Gas for Heavy Industrial Users.
- H-Construction Management and Engineering Company Limited:
a 100% subsidiary company to provide design, construction
supervision, project and construction management services.
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In 2006, major/significant events are summarized as follows:
“The PARK CHIDLOM” Progress
Launched in early 2004, the 219-units or 53,068-square-meters luxury
condominium – The Park Chidlom – has received an impressive market
response. Over 2 years since the project commenced, its target revenue
has increased to Baht 5,875 million in December 2006.
Up to December 2006, Hemaraj has realized Baht 2,930 million of
revenue from 182 units sold (approximately 81% of the total sellable area),
with sales contract value amounting to Baht 4,766 million. The construction
has progressed and the project is planned to start transferring in Quarter
2, 2007.
Hemaraj “Free Zone” Reaching 1,700 rai Total
In 2006, Hemaraj expanded duty Free Zones in its industrial estates, in line with the growing export demand
from customers. The total extent of Hemaraj’s Free Zones has increased from 231 rai in 2005 to 1,687 rai in 2006.
This covers both developed land and SME Factories for Rent and Sale in Rayong, Chonburi and Saraburi. This
continues with Hemaraj the leading Free Zone operator in Thailand.
At Eastern Seaboard Industrial Estate (Rayong) has expanded its Free Zone area from 231 rai in 2005 to
503 rai in 2006. Hemaraj Eastern Seaboard Industrial Estate
continues with the Detroit of the East concept and will be the
key expansion area for auto cluster in the coming years with
has established Free Zone of 757 rai in this industrial estate in
Rayong province.
S I L Industrial Land (Saraburi) is the latest location of
Hemaraj with Free Zone. Positioned as electronics cluster and
logistics hub, S I L’s Free Zone area of 427 rai with developed
land and also SME factories for rent and sale will enhance
customers savings on production costs. Hemaraj also has
an Export Processing Zone at Hemaraj Chonburi Industrial Estate around 460 rai offers developed land and SME
Factories for rent and sale.
Hemaraj EIE Expansion
In 2006, Hemaraj acquired an additional area and started the development of Phase 2 Expansion in order to
support the future expansion of the petrochemical, chemical, and heavy industries in the Eastern Industrial Estate
(EIE) area. Phase 2 Expansion at EIE will add another salable area of 424 rai. Prior to its completion, 301 rai has
already been sold in Quarter 4, 2006.
H-ESIE Development
In December 2005, Hemaraj started the development
of Hemaraj Eastern Seaboard Industrial Estate (H-ESIE). With
a brightened outlook, H-ESIE is a continuation of the Eastern
Seaboard Industrial Estate (ESIE) or “Detroit of the East” auto
cluster. The 2,000 rai area of the first phase development is
currently under development and to be available for sale in the
early of 2007, with 757 rai allocated for a Customs Duty Free
Zone.
Major/Significant Events in 2006
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One Stop Telecom Services and IT Solutions for Hemaraj Industrial Estates
In August 2006, Hemaraj signed a Memorandum of Understanding (MOU) with TT&T Plc. for providing
integrated and advanced telecommunications services at Hemaraj Eastern Seaboard Industrial Estate (Hemaraj
ESIE) in Rayong. The first phase of telecommunication services are planned to be operational in 2007with 1,000
telephone lines fully equipped with high-speed data communication capabilities.
In October 2006, Hemaraj signed a memorandum of understanding (MOU) to appoint Datapro Computer
Systems Co., Ltd. (DCS) as its preferred IT partner. DCS will provide total information technology (IT) solutions and
outsourcing services to interested factories in all industrial estates of Hemaraj. This agreement is part of Hemaraj’s
attempt to facilitate non-core tasks of customers by providing various one-stop services.
Hemaraj Water: New Clarified Water Treatment Plant
In December 2006, the new clarified water treatment plant, under development of Hemaraj Water Company
Limited, at Eastern Industrial Estate has commenced its operation. This new plant with its total production capacity
of 1,800 cubic meters per hour or 43,200 cubic meters per day added 120% to the total water treatment capacity
at EIE which brought total water treatment capacity to 3,300 cubic meters per hour or 79,200 cubic meters per day.
The total investment of this new plant was Baht 150 million.
Credit Rating By TRIS
TRIS Rating Co., Ltd. has affirmed the company rating of Hemaraj Land and Development PLC (Hemaraj)
at “BBB+” with “stable” outlook. The rating reflects Hemaraj’s proven record in industrial estate development, its
reliable utilities and service incomes, and its healthy balance sheet. The rating also takes into consideration the
fluctuation of industrial estate development, the company’s expansion into residential property development, and
the slowdown of the Thai economy due to political uncertainty and regulatory concerns.
The “stable” outlook reflects the expectation that Hemaraj will be able to generate revenue from land
sales and service income from industrial estate development. The condominium project is expected to be
completed and transferred to customers without a significant cost overrun or long delay. The company’s financial
policy is expected to remain conservative to weather the downturns of the property development market.
Major Customer Development
PTT Asahi Chemical purchased 120 Rai of Land in Hemaraj Eastern Industrial Estate (Map Ta Phut)
Dr. Pailin Chuchottaworn (the 4th from left), President
of PTT Asahi Chemical Company Limited (PTTAC), and
Mr. David Nardone (the 4th from right), President & CEO
of Hemaraj Land And Development Plc. have signed
the Land Purchase Contract for 120 rai of land in Hemaraj
Eastern Industrial Estate (Map Ta Phut). The purchased
land is for the construction of petrochemicals plants
producing Acrylonitrile (AN), Methyl Methacrylate (MMA)
and Polymethyl Methacrylate (PMMA). The operation is
planned to commercially run in 2010.
PTT Asahi Chemical Co., Ltd. is a joint venture between PTT Public Company Limited and 2 leading
Japan-based chemical companies, Asahi Kasei Chemical Corporation and Marubeni Corporation. PTTAC will
produce AN, a raw material for producing fabric, carpet and electronic parts. In addition, PTTAC is set in order
to prepare, operate and finalize all crucial fundamental assignment of establishing MMA and PMMA plants for
producing enduring and translucent plastic such as tail-light for cars, LCD screen for mobile and computer, etc.
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PTT Phenol Expands Production in Hemaraj Eastern Industrial Estate (Map Ta Phut) PTT Phenol Company Limited has recently signed an agreement to purchase an 18 Rai plot of land in
the Hemaraj Eastern Industrial Estate (Map Ta Phut) to develop the new
Bisphenol A project. Bisphenol A or BPA is the main feedstock used to
produce Polycarbonate (PC), a high value Engineering Plastic Polymer,
which is used to further produce CD, DVD, medical equipment, automobile
parts, etc. BPA from the new plant will primarily supply the growing local
demand, with the remaining balance exporting to other Asian market.
PTT Phenol Co., Ltd., the first Phenol plant in Thailand, is a joint
venture among PTT Plc., PTT Chemical Plc. and The Aromatics (Thailand)
Co., Ltd.
In the picture: Mr. David Nardone (right), President & CEO of Hemaraj Land And Development Plc. is seen
presenting the contract to Dr. Vites Visanuvimol, (left), President of PTT Phenol Co., Ltd.
Goldensea Sankin Signs Contract with Hemaraj to Buy SME Factory Following their business growth, China-based Goldensea Sankin
(Thailand) Co., Ltd. recently signed a contract with Hemaraj Land And
Development Plc to purchase an SME factory in the Eastern Seaboard
Industrial Estate (Rayong). The manufacturing facility will produce high
quality air filters for use in the electronics, air-conditioning and automobile
industries. Hemaraj’s President and CEO Mr. David Nardone (left) is
seen presenting the contract to Mr. Ding Hong Guang (right), Chairman,
Goldensea Sankin (Thailand) Co., Ltd.
Taiwanese Company to Set up Pipes Factory at Hemaraj’s Eastern Seaboad Industrial Estate (Rayong) Taiwan base Grand Tech Precision Manufacturing (Thailand)
Corporation Limited., recently signed a contract with Hemaraj Land And
Development Plc to purchase 16.16 rai of land at Eastern Seaboard
Industrial Estate (Rayong). The company will set up a manufacturing
facility to produce cold draw steel pipes mainly for export to Asian region.
In the picture: Mr. Hsien-Ta Tseng (3rd from left), Chairman of
Kwong Iee Steel Co., Ltd. and Guang May Tube (Guangzhou) Corporation receives the land purchase contract
from Mr. David Nardone (3rd from right), President & CEO of Hemaraj Land And Development Plc, while Mr.
Sammy Lee (2nd from left), Marketing Development Manager of King Mau Co., Ltd. and Mr. Vivat Jiratikarnsakul
(2nd from right) Hemaraj’s Executive Vice President look on.
Thai-Japanese Firm Expands at Hemaraj’s Eastern Seaboard Industrial Estate Somboon Somic Manufacturing Co., Ltd, a Thai-Japanese joint
venture engaged in the production of auto parts, recently signed a
contract with Hemaraj Land And Development Plc. to purchase 27.5 rai of
additional land at the Eastern Seaboard Industrial Estate (Rayong) to
facilitate expansion of its manufacturing facility.
Somboon Somic Manufacturing is held by Somboon Group of
Thailand and Somic Group of Japan. The company manufactures
strategic parts used for suspension system steering control in passenger cars and one-ton pickups such as
suspension ball joints steering linkages and stabilizer link. Toyota, Isuzu and Honda are its major customers. By
virtue of the expansion, the production capacity of its plant will double comparing with current capacity.
In the picture: Mr. Vivat Jiratikarnsakul (2nd from right), Executive Vice President of Hemaraj Land And
Development Plc., presents the land purchase contract to Mr. Tetsuya Hakamata (2nd from left), President of
Somboon Somic Manufacturing Co., Ltd.
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Environmental Responsibilities
Hemaraj has emphasized and committed itself to long-term sustainable environment for its clients
since the beginning of each project. An Environmental Impact Assessment was mandated for every development
to be considered and its environmental mitigations must be first agreed and approved by the ONEP before the
project is taking its shape. Moreover, an internationally recognized environmental management system, namely
ISO14001, has been adopted into the daily operations of each site to ensure utmost cares to the environment. All
of the industrial estates owned by Hemaraj have won Best Environmental Management Awards from Ministry of
Science.
For year 2006, environmental mitigations were carried out fully in accordance with the mitigation
guidelines and the results were in compliant with the guidelines and as well as other regulations related to
constructing or operating each of the industrial estates. External audit to the environmental management system
by an independent third-part auditor in two separate occasions had also revealed the right level of integrity
and consistency in the management team and procedures, to which a coherent performance in environmental
management can be expected.
Hemaraj is probably the only industrial estate developer in Thailand who has employed the largest (60+)
group of safety technicians and fire brigades to serve and protect the industrial investors and the surrounding
communities 24-7. Teams of these safety people had effectively extinguished several small urgent incidences before
they became real emergency for the investors and had assisted local authorities in dealing with emergencies and
accidents arise in the surrounding communities. Investors and the communities alike have learnt to trust and rely
on their skills, expertise and dependability to help them when an unexpected emergency has erupted.
Environmental Manager Program at ESIE The Federal of Thai Industries in cooperations with Eastern Seaboard
Industrial Estate (Rayong) and Laem Chabang Environmental Club recently
organized Environmental Manager Training Program to share effective
environment care practice such as pollution control and waste management
to factory managers. There were 32 executives from factories in Eastern
Seaboard attending the program.
ITAP, NSTDA visits wastewater treatment system of Hemaraj’s Eastern Seaboard Industrial Estate (Rayong)
Industrial Technology Assistance Programme, National Science and
Technology Development Agency visited the central wastewater treatment
system of Eastern Seaboard Industrial Estate (Rayong). Eastern Seaboard
Industrial Estate (Rayong) is the first and only industrial estate, which
develops and applies sub-surface Vertical-Flow Constructed Wetland for
treating wastewater. This environmental innovation has greatly improved the
effluent quality and the operation efficiency.
Eastern Seaboard Industrial Estate (Rayong) is one of the five of ECO
Industrial Estate Pilot Project under the supervision of IEAT. It is emphasizing the Water Management System
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Social Contributions
On March 31, 2006, Hemaraj organized a blood donation
activity in association with Thai Red Cross Society at its Hemaraj
Eastern Industrial Estate in Map Ta Phut as part of its social
contribution programs.
Hemaraj’s employees and its customers’ representatives
numbering as many as 150 donated blood at the camp.
On June 8, 2006, Hemaraj and Rayong Skill Development
Center organized a certificates presentation ceremony for trainees
who successfully completed Skill Development Training Courses at
the center.
As many as 126 employees from factories located at
Hemaraj’s Eastern Seaboard Industrial Estate (Rayong) as well as
in Rayong province participated in different classes of trainings. The
program was organized as part of Hemaraj Land And Development
Plc’s Skill Development Plan aimed at helping its customers to
enhance their workforce’s skills.
On June 26, 2006, Hemaraj, in coordination with
customers and suppliers in its industrial estates, has distributed
school kits and sports equipment to pupils in Rayong and
Chonburi under its Annual School Contribution Program. The
company has been implementing the project for over 10 years.
In 2006, school assistance covers 34 schools with 7,500
students.
On July 21, 2006, Hemaraj together with Samitivej Sriracha
Hospital, organized a mobile medical unit trip to local communities
surronding Hemaraj’s Industrial Estates in Rayong. The mobile
medical unit trip is one of Hemaraj’s Corporate Social Responsibility
(CSR) programs in Thailand.
On August 18, 2006, Hemaraj donated Baht 800,000 to
AMCHAM Thailand Charitable Foundation for the 2006 “Adopt A
School” program, aimed at providing capital improvements to school
facilities and learning tools to schools around Hemaraj’s industrial
estates in Chonburi and Rayong provinces.
With AMCHAM’s additional 50% match of the donation in
this project, the total reaches Baht 1.2 million. The sum will be spent
this year for 14 schools in the two provinces in Eastern Seaboard.
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On November 20, 2006, Hemaraj donated 500,000
baht to military officers at the Headquarters of the Supreme
Command. The donation is to assist people who have been suffering
from recent floods across the Kingdom.
Hemaraj and AMCHAM donate Bt. 1.2 million for 14
schools
Bangkok, December 2006: Fourteen schools in Chonburi
and Rayong received capital improvements and learning tools
worth Bt. 1.2 million from Thailand’s world class industrial estates
developer Hemaraj Land And Development Plc. and the American
Chamber of Commerce Thailand (AMCHAM) under the ‘Adopt A
School’ Program in 2006.
Graduate Students from Netherland Study trip at The Park
Chidlom
A group of graduate students from the faculty of Real
Estate Management and Development, Eindhoven University of
Technology, the Netherlands, recently visited The Park Chidlom,
Bangkok’s most luxury residential condominium developed by
Hemaraj Land And Development Plc, as part of their study tour of
the real estate market in Bangkok.
S I L (Saraburi) and R I L Industrial Lands Recognized as
“Nice Working Places”
S I L Industrial Land (Saraburi) and Rayong Industrial
Land, managed by Hemaraj Land And Development Plc., recently
achieved the recognition of being Nice Working Place” from the
Department of Industrial Works and Saraburi Provincial Industry
Office in celebration of the 60th anniversary of His Majesty the
King’s accession to the throne.
Hemaraj’s Heroes Rushes to Put out Intense Fire
Hemaraj’s Firemen were the first team arrived at the scene
at 2 o’clock to put out the fire in the neay by Siam Eastern Industrial
Park recently. From time to time Hemaraj’s Firemen team hurries out
to help the nearby communities to put out the fire after receiving a
call asking for help by local authorities.
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Hemaraj Holds Avian Flu and Food Safety Seminar Underlining the Regional Situation
With the intention of building the consciousness of the Avain
Flu situation, Hemaraj Land And Development Plc. organized a
seminar on Bird Flu and Food Safety recently at Eastern Seaboard
Industrial Estate (Rayong). Knowledgeable speakers including Dr.
Prasong Fukcharoenphol from the Office of Disease Prevention
and Control 3 Chonburi, Ministry of Public Health gave constructive
seminar how to prevent and control the ailment. A lot of participants
from companies in Eastern Seaboard Industrial Estate (Rayong) and
near by communities joined the seminar.
BASF Offers Donation for Schools Around Hemaraj’s
Industrial Estates
BASF (Thai) Limited, the world’s leading chemical company
located in the Hemaraj Land and Development’s Eastern Seaboard
Industrial Estate (Rayong), recently offered donation for schools
around Hemaraj’s industrial estates in Rayong and Chonburi
provinces.
Hemaraj donates educational aids to schools around its
industrial estates as part of its Annual Contribution Program.
S I L Blood Donation Day
Employees and constructors in S I L Industrial Land joined
the 2nd Blood Donation Day on 26 April 2006. This program is part
of S I L’s Community Relations project which organizes the Blood
Donation Day 4 times a year in order to dedicate blood to the Red
Cross for the hospital supplies in Saraburi Province.
S I L Gratitude Day
Mr. Narongsak Chatchaval, S I L Industrial Land Manager
joined with Representative from companies in S I L Industrial offer
towels to 150 senior community at Wat Rongsaen School, Saraburi.
This is part of the Senior Citizen Support program organized by
Nhong Pla Mhor Sub-district Organization. This program is part of
S I L’s Community Relations Project.
S I L Youth Camp
Community Relations Committee from the companies in
S I L Industrial Land organized the 9th Youth Camp. 65 students
from 15 schools around S I L Industrial Land participated in the
program, which was held during 24-26 April 2006. Part of the
program was to visit the National Sciences Museum.
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Economic & Competitive Condition
The 2006 Thai economy grew modestly, mostly due to growth of export volume, slowdown of import, and
the recovery of tourism industry amid negative effects especially political situation, slowdown domestic
consumption, and fluctuation of oil price. The 2006 Gross Domestic Production (GDP) projected to grow by
5.0% compared to 4.5% in 2005.
In 2006, the Private Consumption Index expanded only by 1.3% while Manufacturing production continued
to grow by 7.4% and the capacity utilization rate slightly increased to 74.1%. For the year 2006, the Private
Investment Index grew only by 1.4%. Export volumes for Thailand were increased to US$ 128.2 billion, a 17%
increase due to export growth of computer, vehicles, steel products, chemical, and petrochemical products.
Imports increased by 7% to US$ 126 billion following slowdown domestic consumption and decrease of import
of capital goods. Service, income and transfer account remained surplus and current account ended the year
with a surplus of US$ 3.2 billion due to the recovery of tourism industry. The balance of payments was US$ 12.7
billion significantly increased from last year’s surplus of US$ 5.42 billion.
The 2006 property market sales were slowdown largely due to prolong political conflicts. However,
condominium sales especially the Grade A in CBD area of Bangkok both supply and asking prices kept increasing,
despite higher costs. The industrial property market sector decreased by 11%, from 3,236 rai in 2005 to only 2,865
in 2006 as a result of the significant decreased in Foreign Direct Investment (FDI) affected by Thailand’s political
climate. The Board of Investment (BOI) project approval has only Baht 373 billion compared with Baht 571 billion
in 2005, or 35% decrease. The number of projects approved was 1,220 projects, a slight decrease from 2005.
Thailand remained a growing regional production hub in the ASEAN automotive industry, particularly for
one-ton pickups, with the production has reached 1.19 million vehicles in 2006. Domestic vehicle sale in 2006
was 682,500 vehicles and 542,000 vehicles for export.
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
GDP
4.8
6.96.2
4.55.0
(%)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Thailand Industrial Property Market
1,8482,138
2,695
3,236
2,865
(Ral)
20
30
40
50
60
70
80
90
100
110
Capacity Utillzation %(%)
0
100
200
300
400
500
600
700
800
BOI Application Approvals
172
284
601571
373
(Baht : Billion)
2002 2003 2004 2005 2006
2002 2003 2004 2005 2006
2002 2003 2004 2005 2006
2002 2003 2004 2005 2006
PetrochemicalVehicles & PartsTotal
Source: Bank of Thailand, February 2007, Board of Investment, December 2006 CB Richard Ellis, Quarter 4, 2006
�0
Management Analysis
Operating Performance
For the Year 2006, Hemaraj reported Net Income of Baht 1,190.7 million compared with Baht 636.8
million of the same period of last year, representing an 87% increase. The net income increase was
due to a broader revenue mix with improved margins especially from the revenue of The Park Chidlom
condominium and industrial estate utilities. Net Income of 2006 also included gain from extraordinary
items and others which were gain from debt compromising of Baht 86.4 million, Income from increase
of salable area Baht 55.6 million and adjust of loss on decline in value of real estate development cost
Baht 44.6 million. Earning per share of Baht 0.16 Baht per share represented an increase of 55 % from
the same period of last year while fully diluted Earnings per share of Baht 0.15 represented an increase
of 119 %.
For the Year 2006, Hemaraj’s Total Revenue was Baht 4,079.1 million compared with Baht 3,009.9
million for the same period of 2005, representing a 36 % increase. Total Operating Revenue from core
businesses was Baht 3,775.2 million, improved by 29 % from the same period of 2005.
Industrial Estate Land Sales were # 1 in Market Share for 2006, or 25%1 with 712 rai, 49 contracts,
24 new customers and 25 project expansions from existing customers. Industrial Land Sales were Baht
958.5 million, a 14 % decrease. It was noted that the industrial land sales of 325 rai at Hemaraj Eastern
Industrial Estate in Quarter 4, 2006 would be recognized primarily in 2007 due to percent completion
of development.
Operating Revenue from Utilities increased to Baht 584.8 million, an increase of 28 %. SME
Factory Rental increased to Baht 161.4 million, a 6 % increase while SME Factory Sales decreased
to Baht 178.3 million, a 12 % decrease. Revenue from The Park Chidlom increased to Baht 1,719.7
million, representing an increase of 90 % compared with the same period of 2005. The accumulated
sales contract value of “The Park Chidlom” was Baht 4,766 million as of December 31, 2006.
Financial Status
The consolidated Balance Sheet in 2006 is summarized as follows.
Total Assets in 2006 were Baht 11,453 million, a 28% increase from Baht 8,960 million in 2005.
Total Current Assets in 2006 were Baht 9,120 million compared to Baht 6,893 million in 2005, or an
increase of 32%. This includes Cash on Hand of Baht 1,150 million, Account Receivable of Baht 1,826
million and Land held for Real Estate development of Baht 6,120 million.
Other Assets were Baht 2,320 million in 2006. This includes Land held for commercial
purposes not under development of Baht 326 million, assets for rent of Baht 955 million, and
long-term investment in other companies of Baht 478 million which includes the 25% holding in S I L
Industrial Land Co., Ltd., a joint investment with the company in Siam Cement Group, and 5% direct
holding in Glow IPP, a 713MW IPP with Glow Energy.
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Total Liabilities in 2006 were Baht 4,368 million a 29% increase from Baht 3,390 million in
2005.
Total Shareholders Equity in 2006 was Baht 7,085 million versus Baht 5,570 million in 2005, or
a 27% increase due to Net Operating Profit of 2006 and the exercise of the warrants. During the Year
2006, 2,946.18 million units of warrants were exercised to common shares with the amount of 833.8
Million Baht. As of December 31, 2006, there were 9,036.93 million common shares and 672.45 million
warrants outstanding. The 2006 Net Debt to Equity ratio remained low at 0.45 to 1.
1 Source : CB Richard Ellis
Risk Factors & Others
■ External Risks The company faces investment and management risks associated with Thai government and
Bank of Thailand policies as well as external political and economic environment in neighboring and
other countries. In addition Foreign Direct Investment, rising oil price, interest rates, land cost,
construction cost, delays in construction, and shortages of skilled labor are factors that could affect
the company businesses.
The company is aware of the risks and effects associated with such factors and try to have a
systematic monitoring and analytical measurement to prevent and minimize such risks. The Board of
Directors and Management have also implemented the business strategy with appropriate
adjustments based on situation as witnessed from growing broadened operating revenue and
improve profit margins. Increases in revenue from industrial estates, utilities and SME factory rental,
which are recurring and predictable, has balanced our revenue structure. Our multiple-locations
industrial estates with high percentage of repeat customers and the niche selective property project
have also reduced our risk profile.
■ Financial Risks The operating performance, financial status, economic environment in Thailand and other
countries, access to financial and capital market, foreign exchange and interest rates are risk factors
to the companies financial management.
An appropriate and sufficient source of funds with a reasonable cost of capital and
appropriate financial structure will support the company’s competitiveness. Since the economic
crisis, the company’s financial structure has been continuously strengthening resulting in improving
in net debt to equity ratio. In 2006 the net debt to equity ratio was only 0.45 to 1 times with cash
balance of Baht 1,150 million. With strong balance sheet and low debt level, high level of cash on
hands to avoid foreign currency debts, broader lending sources, TRIS rating for potential Baht
bonds, and available credit line from various financial institutions, these will provide the company
more flexibility to grow the business expansion, yet to minimize the financial risks.
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Management Structure
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Board of Directors
1. Mr. Sawasdi Horrungruang Chairman of the Board of Directors
2. Mr. Thavorn Anankusri Director (See Notes)
3. Mr. Thongchai Srisomburananonta Director (See Notes)
4. Mr. David Richard Nardone Managing Director
5. Mr. Sudhipan Charumani Independent Director
6. Mr. Peter John Edmondson Independent Director
7. Mrs. Punnee Worawuthichongsathit Independent Director
8. Mr. Vivat Jiratikarnsakul Director
9. Ms. Pattama Horrungruang Director
10. Ms. Somphong Wanapha Independent Director
With Mr. Sirisak Kijraksa being the Company Secretary
Notes : Mr. Thavorn Anankusri resigned from Directorship on February1st 2007
Mr. Thongchai Srisomburananonta was appointed Director on April 27th, 2006
Basic Scope of Board of Directors’ Responsibility
The Board of Directors has the responsibility in formulating corporate visions, major policies
and overall strategies with honesty and care, to achieve continuous and long lasting benefits for the
Shareholders. This responsibility includes the control and supervision of corporate management to
assure that board instructions are put into practice with efficiency and in line with relevant laws, the
SET’s and SEC’s rules and regulations, as well as with good corporate governance principles. In
discharging its responsibility, the Board may appoint or assign one or more specific directors or any
other persons to act on its behalf, and can revoke such appointments or assignments, as it may be
necessary or appropriate.
Executive Committee
1. Mr. Sawasdi Horrungruang Chairman of the Executive Committee
2. Mr. Thavorn Anankusri Vice Chairman of the Executive Committee
3. Mr. Thongchai Srisomburananonta Vice Chairman of the Executive Committee
4. Mr. David Richard Nardone Executive Director
5. Mr. Vivat Jiratikarnsakul Executive Director
6. Ms. Pattama Horrungruang Executive Director
The Executive Committee has the responsibility as assigned by the Board of Directors, in
formulating and reviewing major operation policies and strategy issues on behalf of the Board of
Directors, including the assignment of operation plans and budgets and the screening of investment
projects. Moreover, it has been given the role and responsibility to ensure that the Company’s operations
is in accordance with the Board’s guidance and policy, so as to maximize work efficiency and enhance
performance results.
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Scope of the Executive Committee’s Authority and Responsibility
1. To screen and review business plans, investment plans, together with the relevant budgets,
as prepared by the management, prior to passing on the said data to the Board of Directors for
consideration and approval.
2. To follow up, supervise and control the Company’s work progress, in order to ensure that the
Company’s operations is in line with what the authorizing or assigning Board would expect.
3. To consider granting permission to commence important activities, as well as to authorize
payments in excess of the Management’s authority, in accordance with the Company’s Authorization
rules and the approved budgets.
4. To set the Company’s organization chart, authority of the Management and the remuneration
policy for Board consideration.
5. To assign one or more specific persons to act on behalf of the Executive Committee, or to
revoke, after rectify such assignments as the Executive Committee may consider appropriate.
6. To perform any other tasks, as assigned by the Board of Directors.
The above-stated scope of authority would not apply where a vested interest or a conflict of
interest concerning a related party transaction under SEC regulations is at issue. In such a case the
Executive Committee would need to refer the matter to the Board of Directors or to a Shareholders’
Meeting, as the case may be, for consideration and approval, unless a prior pre-set permission by the
Board of Directors is already available.
Audit Committee
1. Mr. Sudhipan Charumani Chairman of the Audit Committee
2. Mr. Peter John Edmondson Member of the Audit Committee
3. Mrs. Punnee Worawuthichongsathit Member of the Audit Committee
The Audit Committee has the following duties and responsibilities to the Company’s Board of
Directors:
1. To review that the Company’s financial reports are correct and sufficient;
2. To review that the Company has appropriate and efficient internal control and internal audit
systems;
3. To review that the Company complies with laws relating to securities and securities markets,
as well as with SET’s rules and regulations and any other laws relating to the Company’s business;
4. To consider, select and propose the appointment of the Company’s statutory auditor and to
propose his professional fees;
5. To consider whether the Company discloses correct and adequate information with regards
to third party transactions or any transactions with a conflict-of-interest tendency;
6. To include in the Company’s annual report the Audit Committee’s own review result,
expressing opinion on the Company’s internal control system, as well as on the preparatory procedure
and data disclosure of the financial statements. This review report shall be signed by the audit
committee chairman;
7. To report the Audit Committee’s performance to the Company’s Board of Directors at least
on a quarterly basis;
8. To participate in the appointment, removal, work assessment and remuneration granting of
the internal auditor; and
9. To perform any other work that the Audit Committee agrees to, as may be assigned by the
Company’s Board of Directors.
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Remuneration Committee
The Company has not formed a Remuneration Committee to date. Compensations for staff
below the top-executive level are determined by the Management and CEO, and compensations
for the Top Executive level, including CEO are determined by the Executive Committee, taking into
account such factors as the basic in-house rates, the prevailing employment environments, work
performance or contribution to the Company, the degree of dedication shown, and according to the
Company’s salary policy. These consideration factors will provide necessary encouragement to keep
the Company’s quality and key personnel.
As for the Directors’ remuneration compensations, they are considered and proposed by the
Board of Directors for Shareholders approval at the Annual General Meeting, as in relevant cases of
joint-venture and subsidiary companies. Such compensation proposals would also be based on the
general market trend, individual responsibility levels and work results, as well as the Company’s actual
performance and prevailing financial strength.
Good Corporate Governance Committee
Although the Company had no specific GCG Committee during the 2006 financial year, much
attention was given to the promotion and effective application of GCG principles, especially with regard
to equitable treatments and fairness to all stakeholders, correct and adequate information disclosure
and transparency of operation. Such stakeholders, apart from individual shareholders, effectively
included the Company’s own management personnel and employees, customers, suppliers, outside
organizations and businesses, joint-venture partners, creditors, regulatory bodies, as well as the
communities in which it had operations. Moreover, the Board of Directors in a Meeting on February
27th, 2007 finally resolved to formally set up a GCG Committee to enhance the Company’s GCG
development, in compliance with the SET’s and SEC’s joint recommendation.
Selection of Company’s Directors and Top Management
In 2006, the Company did not formed a Nomination Committee to specially handle situations
concerning vacancies or increments of Board membership. The recommendation of new directors
shall be deliberated by the Board of Directors. In actual practice, a name list of suitable candidates,
together with relevant background information, would be submitted in advance by current directors
and/or shareholders for formal consideration in a Board Meeting. Such a Meeting would first emphasize
the most required attributes on the occasion, before proceeding to discuss each candidate in depth
on issues of reputation, experience, known ability and vision, as well as other relevant aspects. Those
chosen by the Board would have their names proposed to the forthcoming Shareholders’ Meeting for
consideration and approval. It should be hereby mentioned, that the Board of Directors at its Meeting
on February 27th, 2007 resolved to set up a Nomination Committee to be operative this role, started
next time selection in same year.
Company Management
1. Mr. David Richard Nardone President & Chief Executive Officer
2. Mr. Vivat Jiratikarnsakul Executive Vice President
3. Ms. Pattama Horrungruang Senior Vice President & Chief Financial Officer
4. Mr. Khamhoung Ratsamany Director - Industrial Estate Operations
5. Mr. Tanin Subboonrueng Director - Industrial Estate Development
6. Mr. Sirisak Kijraksa Director - Account and Legal
7. Ms. Somjai Wachiraha Director - Finance
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8. Mr. Niphone Harnpatanapanich Director - Residential / Property Planning
9. Mr. Cherdpan Thiemtad* Director - Water Project Planning
10. Mr. Paopitaya Smutrakalin Director - Corporate Planning and Investor Relations
11. Ms. Jinnapat Tongviseskul Director - Residential / Property Customer Development
12. Ms. Ladda Rojanavilaivudh Director - Industrial Customer Development
13. Ms. Anchalee Parsertchand Director - Industrial Customer Development
14. Ms. Chantana Hinkaew Director - Corporate Marketing
15. Mr. Apichat Trongsukson Assistant Director - Information System & Services
Note : * has been appointed on January 15th, 2007
The Management shall have the responsibilities as appropriately assigned by the President
& CEO in order to manage the business of the company with efficiency and effectiveness and to
implement the strategies and policies according to targets and budgets as approved by the Board of
Directors and Executive Committee of the company.
Remuneration for Director and Management
1. The remuneration for 10 Directors in 2006 was Baht 17,545,000 (In 2005 was Baht 16,230,000).
The remuneration was in the form of meeting allowance and compensation, which also included the
compensations for Executive Committee and Audit Committee. The details by each director were as
followes:
Notes : Mr. Thavorn Anankusri resigned from Director on February 1st, 2007
Mr. Thongchai Srisomburananonta was appointed Director on April 27th, 2006
2. Total remuneration in cash for the Company’s executives and management in the
forms of salary, bonus, and provident fund for 17persons in 2006 was Baht 127,436,139.25
3. Other Remuneration
- None -
1. Mr. Sawasdi Horrungruang Chairman of the Board of 250,000 2,500,000 2,750,000 Directors / Chairman of the Executive Committee
2. Mr.Thavorn Anankusri * Director / Vice Chairman of 140,000 1,850,000 1,990,000 Executive Committee
3. Mr. Thongchai Srisomburananonta Director / Vice Chairman of 140,000 1,850,000 1,990,000 Executive Committee
4. Mr. Sudhipan Charumani Director/Chairman of the 315,000 1,000,000 1,315,000 Audit Committee
5. Mr. David Richard Nardone Director/Executive Director 175,000 1,750,000 1,925,000
6. Mr. Peter John Edmondson Director/ Member of 275,000 1,000,000 1,275,000 Audit Committee
7. Mrs. Punnee Worawuthichongsathit Director/ Member of 275,000 1,000,000 1,275,000 Audit Committee
8. Mr. Vivat Jiratikarnsakul Director/Executive Director 175,000 1,750,000 1,925,000
9. Ms. Pattama Horrungruang Director/Executive Director 175,000 1,750,000 1,925,000
10. Mr. Somphong Wanapha Independent Director 175,000 1,000,000 1,175,000
Total 2,095,000 15,450,000 17,545,000
Remuneration (Baht) Name Position Board Meeting
Compensation Total Allowance
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Good Corporate Governance
The Board of Directors are collectively responsible for the Good Corporate Governance of
the Company, and in their role to direct monitor and supervise the strategy policy and control of the
Company provide this direction to the Management of the Company to be adhered to for long-term
value to the Shareholders. Good Corporate Governance is developed in conformity with the Corporate
Governance’s guidelines from the Stock Exchange of Thailand as follows:
1. Good Corporate Governance Policy The Company policy is to fully embrace the principles of Good Corporate Governance and
this is the responsibility of the Board of Directors specifically to ensure its full adherence within the
organization and by practice within the management and organization of the Company. The underlying
principles of good corporate governance relies on the principles of equitable treatment and fairness
of all stakeholders, the full and meaningful disclosure, and the transparency of the Company its
operations and information.
2. Rights and Equitable Treatment to Shareholders All shareholders are invited to the annual shareholder’s meeting or extraordinary meeting
(if any). The company would send out an invitation letter and agenda of each meeting to the
shareholders prior to the meeting for their consideration. Shareholders have voting rights equal to
the number of shares owned and must exercise all eligible votes to safeguard their investment in
voting for a resolution, an opinion for a significant decision making, for example, Company regulations
amendment, capital increase. All shareholders have right to receive correct, up-to-date, fully disclosed
information. Shareholders wishing to appoint a proxy representation may appoint any person or may
elect to appoint the Independent Director and Chairman of the Audit Committee as recommended by
the SEC. Shareholders can have any queries related to companies as appropriate in the meeting.
3. Rights of Various Groups of Stakeholders The company realizes and respects the rights of various groups of stakeholders, including
shareholders, minority shareholders, employees, customers, creditors, vendors, the public and
communities and government sectors through various procedures such as the Shareholders’ Meeting,
providing information on employee’s rights concerning welfare benefits, receiving all inquiries from
customers and nearby communities, environmental education and community programs in the areas
where we operate, operate the business with commitments and ethics.
4. Shareholders’ Meeting A Shareholders’ Meeting is to be held at least once a year. Prior to the meeting, not only does
the company send an invitation letter along with the Shareholder’s Meeting agenda in advance, but
also publish the meeting in the local media to ensure the full disclosure of the scheduled meeting.
During the meeting, the Board of Director provides Shareholders’ information and gives opportunity
to Shareholders to raise any concerns and/or issues related to the company’s operation. The Board of
Director will also directly monitor and supervise the company’s management to efficiently operate and
manage as the business plan. Additionally Shareholders could contact the company anytime through
the Investor Relations Department and the company website.
5. Leadership & Vision The company’s Board of Directors, selected to have a broad experience level, formulates
the company’s vision, strategy, oversight of its business plan, and oversees a level of control and risk
management of its operation. The Board of Directors objective is to maximize the return to shareholders
in a controlled way and according to the good corporate governance.
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6. ConflictofInterest 1ConflictofInterest
The Company’s Board of Directors and Management have been acknowledged and
realized the importance of legal and ethical conflict of interest and related transactions
guidelines. The company has disclosed, in accordance with the regulations of Stock
Exchange of Thailand, such information, detail and reason/necessity, if any in the company’s
Annual Report and the 56-1 Form. The Company further uses the Audit Committee,
internal auditors, external auditors, and external lawyers to review compliance.
1 Insider Trading ControlsThe Company’s Board of Directors and Management uses a number of safeguards to
prevent the risks that may occur as recommended by the Audit Committee, the outsourced
internal auditor, external auditor, and professional legal advisors. The Company has set
an internal control system to follow SET’s rules and regulations in preventing internal
information disclosure to outsiders prior to the company press release. The Company
also informs the Board of Directors and Management about the notification of SET and
SEC concerning rules, procedures and disclosure of securities holdings and changes in
holdings.
7. Business Ethics The Company policy from the Board of Directors, communicated through top management
to both management and employees in the employee handbook is to conduct business with sound
ethics toward the company, all stakeholders, and the public. On February 27, 2007, the Board of
Directors has appointed the Good Corporate Governance Committee to promote Good Corporate
Governance activities throughout the organization in accordance with SET’s and SEC’s guidelines.
8. Balance of Power for non-management Directors The company’s Board of Directors consists of 10 directors which are:
1 Executive Directors 6 persons
1 Independent Directors 4 persons
The company’s Independent Directors who 3 from 4 independent directors are Audit Committee,
are not involved in the daily operations of the Company.
9. Aggregation or Segregation of Positions - Chairman and CEO The company’s Chairman of the Board of Directors is not the same person as the President
& CEO and the structure of the Board of Directors consists of four Independent Directors with highly
experience and knowledge in accounting, finance, and other businesses. This creates a balance
between the interests and representation of the shareholders and the management as well as
independent persons whom could review the company’s business plans, controls, and create a
balanced view according to the Good Corporate Governance Policy.
10. Remuneration for Director and Management The remuneration of the company’s Directors has been considered by the Board of Directors
and then proposed for approval in the Shareholders Meeting. The Remuneration compensation is in
order to be competitive in the market in attracting highly qualified individuals, to reflect the contributions
and performance of the individuals and in consistent with the Company’s performance to efficiently
and effectively achieve the Company’s objectives.
11. Board of Directors’ Meeting During 2005, from January to December, the company held 10 Board of Directors’ Meetings.
There were calls for regular meetings and/or for emergency meetings when need of the directors/
committee’s consideration, opinion and decision by sending out prior notice, invitation and agenda to
all directors and committee.
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12. Committee The authority and responsibility of the Board of Directors and Committee are clearly defined.
The report of the Board and Committees’ meeting as well as any items for further consideration are
reviewed by the related Committee for the accuracy and completeness before distributing out for
further action.
13. Controlling System & Internal Audit The Audit Committee is appointed to be responsible to analyze, review, follow, and discuss
with the external auditor, the outsourced internal audit, and the management for the accuracy,
completeness and accountability of the financial statements and the company internal control system
effectiveness including giving the observation notes according to related laws, regulations of the
Government and SET, General Accepted Accounting Principles and Good Corporate Governance.
The Audit Committee meets and reports to the Board of Directors at least quarterly and has an annual
Audit Committee Report as included in the Company Annual Report.
14. Report from the Board of Directors on the company’s Financial Statements With a thoroughly consideration and carefully review the company’s financial statements,
the Board of Directors will ensure its follow the Generally Accepted Accounting Standard. The
company has regularly exercised an appropriate accounting policy and standard. In addition, the
Board of Directors as the plan recommends by the Audit Committee and Management to appoint the
outsiders to be the internal Auditors, to observe the company’s internal control system and to verify the
completeness and accuracy of the company’s financial statements.
15. Relations with Investors Investor Relations Department has been established for individual investors or stockholders
benefits and interests as the company sees the significant of their investments and values. The analyst
meetings are held consistently to meet with investors and analysts to provide on the updated company
financial results and businesses.
A site visit or company visit are always welcome by contacting the Investor Relations
Department. The company information and press releases can also be found in the company website
at www.hemaraj.com. Or email any concerns to [email protected].
Dividend Policy
After having considered the Company’s financial position, reserve for investment plans and
adequacy of cash flow, the company has the policy to pay a minimum of 50% of net profit after tax for
dividend payment on each year, under the condition that the company does not have accumulated loss.
The Company may consider to pay the interim dividend upon the consideration of the Board of Directors.
Name of Directors Position Number of Attendance/Total Meetings
Mr. Sawasdi Horrungruang Chairman of the Board of Directors 5/5
Mr. Thavorn Anankusri * Director 4/5
Mr. Thongchai Srisomburananonta ** Director 4/5
Mr. David Richard Nardone Managing Director 5/5
Mr. Sudhipan Charumani Independent Director 5/5
Mr. Peter John Edmondson Independent Director 5/5
Mrs. Punnee Worawuthichongsathit Independent Director 5/5
Mr. Vivat Jiratikarnsakul Director 5/5
Ms. Pattama Horrungruang Director 5/5
Mr. Somphong Wanapha Independent Director 5/5
Note : * Mr.Thavorn Anankusri resigned from Director on February 1st, 2007 ** Mr. Thongchai Srisomburananonta was appointed as Director on April 27th, 2006
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In addition, dividend policy of the subsidiary companies is based on the business performance
and cash flow in each year of those companies.
Related Party Transactions
1. Related Party Transactions during the Year The Company and subsidiaries in 2006 had the transactions with its associate companies,
connected companies, as well as some other companies which exhibited certain common Directors
and/or Senior Management personnel with normal business nature. Such transactions could be
summarized as follows:
1 Income: Deriving mainly from industrial estate utility charges, management fees, design
fees and rental fees in respect of services provided to related parties on a normal
business basis.
1 Expenditure: Being service fees that the Company and certain subsidiaries were charged
by an associated company, which provided maintenance and repair services of tools
and equipment as its normal business.
1 Inter-Company Lending: Under a joint-venture agreement with The Siam Cement Plc.,
which holds 75% of SIL Industrial Land Co., Ltd.’s share capital, the Company which
holds the remaining of 25% share portion has been obligated to provide a pro-rate
loan of Baht 7.5 million to the latter as working capital, at an interest rate of MLR-1%.
This situation is considered ‘normal business’ under its environments.
(Further details of Related Party Transactions are provided in No.2 of Notes to Financial
Statements)
2. Necessity and Reasonableness of Transactions To enhance net work strengthening and operation efficiency, related party transactions of a
normal business nature and of fair mutual benefits would have an open path within the normal course
of the Company’s business. Each transaction, however, would go through successive proposing
and screening stages prior to being approved by the Management, the Executive Board, the Board
of Directors or a Shareholders’ Meeting, as the case might be including come under the Audit
Committee’s reviews, which will be in accordance with SET’s and SEC’s rules and regulations, as well
as in accordance with the generally accepted accounting principles.
3. Policy and Criteria for Approving Transactions. Related party transactions, prior to taking effect, require to be approved by the Management,
Executive Board, Board of Directors or a Shareholders’ Meeting, as the case may be. Such an approval
must appropriately and transparently follow the Company’s laid down procedure, and be within the
following policy guidelines:-
1 Such transactions must be of a normal business nature, with good reasoning and a fair yield.
1 Anyone with an inappropriate interest or a possible conflict of interest in a particular
transaction will not participate in the approving process of that transaction.
1 Any significant transaction that might contain a conflict-of-interest aspect needs to be
submitted to the Board of Directors for consideration.
1 The External Auditor, the outsourced Internal Auditor, together with the Audit Committee,
provide an efficient audit /review system for the above purposes.
1 Information relating to related party transactions is correctly, adequately and clearly
disclosed in the Company’s Financial Statements in accordance with the SET’s and
SEC’s rules and regulations, as well as in accordance with the generally accepted
accounting principles.
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Independent Certified Public Accountants’ Report
To the Shareholders of Hemaraj Land and Development Public Company Limited
I have audited the consolidated balance sheets of Hemaraj Land and Development Public
Company Limited and its subsidiaries as of December 31, 2006 and 2005, and the related consolidated
statements of changes in shareholders’ equity, income and cash flows for the years then ended. I have
also audited the financial statements for the same periods of Hemaraj Land and Development Public
Company Limited. These financial statements are the responsibility of the Company’s management as
to their correctness and completeness of the presentation. My responsibility is to express an opinion
on these financial statements based on my audits.
I conducted my audits in accordance with generally accepted auditing standards. Those
standards require that I plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statements presentation. I believe that my audit provides a reasonable
basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of Hemaraj Land and Development Public Company Limited and its subsidiaries
and of Hemaraj Land and Development Public Company Limited as of December 31, 2006 and 2005,
the results of their operations, and cash flows for the years then ended in conformity with generally
accepted accounting principles.
Kesree Narongdej
Certified Public Accountant
Registration No. 76
A.M.T. & ASSOCIATES
Bangkok, Thailand
February 14, 2007
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Hemaraj Land And Development Public Company Limited And Its Subsidiaries As of 31st December 2006
(Unit : In Baht)
The accompanying notes to financial statements are an integral part of these statements.
ASSETS CURRENT ASSETS
Cash and deposits at financial institutions 5 1,149,829,513.29 761,520,077.63 685,449,979.46 493,179,611.34
Current investments
Time deposits 5 and 28 90,376.54 330,472,529.31 15,950.23 322,968,295.34
Marketable securities, net 3,537,466.46 73,358,697.02 3,537,466.46 73,358,697.02
Trade account receivables 6
Related parties, net 1,041.15 422,343.43 1,027,200.00 -
Other parties, net 89,791,215.49 65,078,976.90 8,206,155.94 21,450,998.97
Unbilled completed work 6 1,736,415,916.48 633,542,735.18 1,485,488,566.32 156,806,194.30
Short - term loans and advance
to related parties 4 13,183,144.03 5,108,142.82 1,386,682,542.06 765,205,421.50
Cost of real estate developments, net 8, 28 and 29 6,119,907,823.95 4,947,564,704.74 1,676,371,288.51 1,507,888,983.93
Other current assets 20,094,216.92 33,011,421.00 4,795,923.96 22,913,593.14
Total Current Assets 9,132,850,714.31 6,850,079,628.03 5,251,575,072.94 3,363,771,795.54
NON - CURRENT ASSETS
Investments for using the equity method 4 and 28 334,758,774.34 270,693,466.78 3,855,009,908.59 3,635,164,982.96
Other long - term investments
Related parties, net 4 and 28 1,500,000.00 1,500,000.00 - -
Other parties, net 9, 28 and 29 142,783,002.50 175,283,002.50 142,500,002.50 175,000,002.50
Long - term loans to other parties - 12,264,871.47 - 12,264,871.47
Assets for rent, net 10 and 28 954,641,840.16 928,613,784.91 61,428,632.59 50,595,056.46
Property, plant and equipment, net 11 424,837,431.50 303,578,100.66 34,174,393.85 37,884,237.08
Other non - current assets
Leasehold land and land held for
commercial purposes, net 12 and 28 325,719,200.00 281,064,250.00 325,719,200.00 281,064,250.00
Sinking fund, net 13 and 29 65,557,524.08 62,235,152.50 25,863,328.97 27,328,047.99
Deposit for land purchase 29 32,829,875.00 47,861,718.75 32,829,875.00 47,861,718.75
Advance to the provincial electricity authority 25,191,331.54 - - -
Others 12,509,127.41 26,849,124.95 5,183,406.96 20,014,950.94
Total Non - Current Assets 2,320,328,106.53 2,109,943,472.52 4,482,708,748.46 4,287,178,118.15
TOTAL ASSETS 11,453,178,820.84 8,960,023,100.55 9,734,283,821.40 7,650,949,913.69
CONSOLIDATED THE COMPANY ONLY
Note As of 31st As of 31st As of 31st As of 31st
December 2006 December 2005 December 2006 December 2005
Balance Sheets
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mp
an
y L
imit
ed
Balance Sheets (Continued)
Hemaraj Land And Development Public Company Limited And Its Subsidiaries As of 31st December 2006
(Unit : In Baht)
The accompanying notes to financial statements are an integral part of these statements.
LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES
Short-term loans from financial institutions 14 380,000,000.00 635,000,000.00 380,000,000.00 385,000,000.00
Trade account payables
Related parties, net 1,777,226.13 341,914.22 209,809.88 1,630,680.00
Other parties, net 328,026,873.85 308,863,189.00 115,914,612.23 133,825,993.38
Current portion of long - term loans
Related person 4 and 16 6,400,000.00 6,400,000.00 - -
Others 17 and 28 144,020,000.00 120,038,249.99 - -
Short - term loans and advance
from related parties 4 26,800,000.00 32,041,424.66 56,017,665.06 51,557,130.43
Other current liabilities
Unearned income and income
received in advance 7 134,231,215.67 127,032,285.53 8,901,121.80 24,161,980.11
Accrued interest expenses 7,428,246.59 8,275,479.47 7,428,246.59 3,317,808.23
Accrued expenses 26,390,905.72 50,214,492.79 13,007,362.29 38,042,123.05
Other account payables 3,104,913.61 4,999,616.39 1,285,636.39 1,085,636.39
Accrued income tax 25 208,475,786.80 15,053,600.23 167,114,753.13 4,941,562.48
Accrued specific business tax and transfer fee 133,782,420.57 66,603,797.16 108,553,176.76 44,813,030.63
Accrued dividend payable 21 5,804,525.00 3,370,633.70 5,804,525.00 3,370,633.70
Others 59,170,341.55 41,319,814.41 30,489,166.83 27,650,690.18
Total Current Liabilities 1,465,412,455.49 1,419,554,497.55 894,726,075.96 719,397,268.58
NON - CURRENT LIABILITIES
Long - term loans from related party 4 and 15 - - 1,153,196,016.67 1,276,109,788.82
Long - term loans from related persons 4 and 16 - 6,400,000.00 - -
Other long - term loans 17 and 28 2,693,024,985.96 1,552,911,255.31 1,145,400,000.00 391,600,000.00
Provision 18 - 242,520,547.95 - 242,520,547.95
Other non - current liabilities
Retention payables 119,345,603.25 69,609,949.01 61,602,725.93 33,128,074.07
Guarantee Received 73,045,787.50 74,934,516.00 5,105,100.00 5,036,500.00
Deferred leasehold right income 9,932,092.41 11,529,745.97 - -
Others 7,557,383.62 11,726,682.16 4,889,004.48 8,558,563.96
Total Non - Current Liabilities 2,902,905,852.74 1,969,632,696.40 2,370,192,847.08 1,956,953,474.80
Total Liabilities 4,368,318,308.23 3,389,187,193.95 3,264,918,923.04 2,676,350,743.38
CONSOLIDATED THE COMPANY ONLY
Note As of 31st As of 31st As of 31st As of 31st
December 2006 December 2005 December 2006 December 2005
��
Annual R
eport 2006 , H
em
ara
j La
nd
an
d D
eve
lop
me
nt P
ub
lic C
om
pa
ny L
imite
d
Balance Sheets (Continued)
Hemaraj Land And Development Public Company Limited And Its Subsidiaries As of 31st December 2006
(Unit : In Baht)
The accompanying notes to financial statements are an integral part of these statements.
SHAREHOLDERS’ EQUITY
Share capital - Baht 1 par value
Authorized share capital
Common stocks 15,000,000,000 shares 19 15,000,000,000.00 15,000,000,000.00 15,000,000,000.00 15,000,000,000.00
Issued and paid-up share capital
Common stocks 9,036,927,495 shares for 9,036,927,495.00 6,090,749,424.00 9,036,927,495.00 6,090,749,424.00
the year 2006 and 6,090,749,424 shares
for the year 2005
Warrants 20 1,904,573.51 10,249,352.11 1,904,573.51 10,249,352.11
Premium (discount) on common stocks, net (4,907,170,183.03) (2,803,105,284.71) (4,907,170,183.03) (2,803,105,284.71)
Unrealized loss from changes in carrying amount of
available-for-sale securities (33,382,780.88) (18,588,060.17) (33,382,780.88) (18,588,060.17)
Currency translation differences (27,893,720.65) (24,922,881.78) (27,893,720.65) (24,922,881.78)
Retained earnings
Appropriated - legal reserve 21 386,776,978.92 327,238,668.17 271,626,014.80 212,087,704.05
Earnings 2,012,202,535.49 1,392,977,952.69 2,127,353,499.61 1,508,128,916.81
Total Equity of Parent Company’s Shareholders 6,469,364,898.36 4,974,599,170.31 6,469,364,898.36 4,974,599,170.31
Minority interest 615,495,614.25 596,236,736.29 - -
Total Shareholders’ Equity 7,084,860,512.61 5,570,835,906.60 6,469,364,898.36 4,974,599,170.31
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 11,453,178,820.84 8,960,023,100.55 9,734,283,821.40 7,650,949,913.69
CONSOLIDATED THE COMPANY ONLY
Note As of 31st As of 31st As of 31st As of 31st
December 2006 December 2005 December 2006 December 2005
��
Statements of Income
Ann
ual R
epor
t 200
6 ,
He
ma
raj
La
nd
an
d D
eve
lop
me
nt
Pu
blic
Co
mp
an
y L
imit
ed
Hemaraj Land And Development Public Company Limited And Its Subsidiaries For the years ended December 31, 2006 and 2005
(Unit : In Baht)
The accompanying notes to financial statements are an integral part of these statements.
REVENUES
Sales of land 990,408,588.64 1,116,933,266.63 71,256,482.33 53,375,337.50
Sales of pre-fabricated factory 178,318,411.52 201,536,063.08 11,718,875.00 27,630,000.00
Sales of condominium 1,719,705,228.19 907,290,731.07 1,719,705,228.19 907,290,731.07
Services income 4 889,284,698.48 710,446,104.70 140,578,052.07 148,968,667.85
Income from increase of salable area 22 55,604,501.77 - 55,604,501.77 -
Other income
Profits from sales of investments 9,231,546.15 23,012,815.81 9,231,546.15 23,012,815.81
Interest income 4 23,934,376.97 8,460,771.79 91,221,554.08 42,323,176.54
Management income 4 10,953,121.04 2,380,916.63 37,042,795.77 22,980,109.91
Commission income 4 - - 34,090,614.52 44,214,166.16
Dividend income 112,404,107.17 12,730,341.32 112,404,107.17 12,280,344.32
Gain on exchange rate - 477,477.89 - 477,477.89
Adjustment of loss on decline in value of
real estate development cost 12 44,654,950.00 - 44,654,950.00 -
Others 20,335,170.96 25,714,681.46 5,996,834.87 15,240,049.17
Share of profits from investments for using
the equity method - subsidiary companies 4 - - 316,143,723.99 269,215,072.52
Share of profit from investments for using
the equity method - associated companies 4 24,315,307.56 960,339.31 24,315,307.56 960,339.31
Total Revenues 4,079,150,008.45 3,009,943,509.69 2,673,964,573.47 1,567,968,288.05
EXPENSES
Cost of land sales 540,852,296.74 680,885,637.34 54,538,918.44 35,833,248.33
Cost of pre-fabricated factory sales 135,405,248.28 153,453,568.46 5,703,443.34 22,212,758.74
Cost of condominium sales 930,718,969.27 486,719,168.03 931,251,541.53 486,719,168.03
Cost of services 4 501,437,580.56 447,078,298.94 91,924,033.63 110,049,086.76
Selling and administrative expenses 4 491,346,191.42 442,163,707.64 260,082,596.05 233,445,256.28
Other expenses
Estimated loss on possible loss from lawsuit 18 - 18,000,000.00 - 18,000,000.00
Loss on exchange rate 525,928.85 - 525,928.85 -
Loss on investment revaluation - 717,000.00 - -
Total Expenses 2,600,286,215.12 2,229,017,380.41 1,344,026,461.84 906,259,518.14
CONSOLIDATED THE COMPANY ONLY
Note 2006 2005 2006 2005
��
Statements of Income (Continued)
Annual R
eport 2006 , H
em
ara
j La
nd
an
d D
eve
lop
me
nt P
ub
lic C
om
pa
ny L
imite
d
Hemaraj Land And Development Public Company Limited And Its Subsidiaries For the years ended December 31, 2006 and 2005
(Unit : In Baht)
The accompanying notes to financial statements are an integral part of these statements.
PROFIT BEFORE INTEREST AND
INCOME TAX EXPENSES 1,478,863,793.33 780,926,129.28 1,329,938,111.63 661,708,769.91
INTEREST EXPENSES 4 39,878,579.58 27,303,660.60 17,644,966.33 12,715,119.18
INCOME TAX EXPENSES 25 275,289,347.34 35,527,385.42 207,952,135.85 12,159,877.91
PROFIT AFTER TAX 1,163,695,866.41 718,095,083.26 1,104,341,009.45 636,833,772.82
MINORITY INTEREST (59,354,856.96) (81,261,310.44) - -
PROFIT FROM ORDINARY ACTIVITIES 1,104,341,009.45 636,833,772.82 1,104,341,009.45 636,833,772.82
EXTRAORDINARY ITEM
Gain from debt compromise 18 86,425,205.46 - 86,425,205.46 -
NET PROFIT 1,190,766,214.91 636,833,772.82 1,190,766,214.91 636,833,772.82
BASIC EARNINGS PER SHARE 26
Profit from ordinary activities 0.15 0.11 0.15 0.11
Extraordinary item, net 0.01 - 0.01 -
Net profit 0.16 0.11 0.16 0.11
DILUTED EARNINGS PER SHARE 26
Profit from ordinary activities 0.14 0.07 0.14 0.07
Extraordinary item, net 0.01 - 0.01 -
Net profit 0.15 0.07 0.15 0.07
CONSOLIDATED THE COMPANY ONLY
Note 2006 2005 2006 2005
��
Statements Of Changes In Shareholders’ Equity
Hemaraj Land And Development Public Company Limited And Its Subsidiaries For the years ended December 31, 2006 and 2005
(Uni
t : In
Bah
t)
The
acc
omp
anyi
ng n
otes
to fi
nanc
ial s
tate
men
ts a
re a
n in
teg
ral p
art o
f the
se s
tate
men
ts.
Ann
ual R
epor
t 200
6 ,
He
ma
raj
La
nd
an
d D
eve
lop
me
nt
Pu
blic
Co
mp
an
y L
imit
ed
CONS
OLID
ATED
Unre
alize
d
Reta
ined
ear
ning
s
gai
n (lo
ss)
Issu
ed a
nd
Pr
emiu
m
from
cha
nges
Cu
rrenc
y
paid
-up
War
rant
s (d
isco
unt)
in c
arry
ing
tra
nsla
tion
Appr
opria
ted
Reta
ined
M
inor
ity
Tota
l
shar
e ca
pita
l
on c
omm
on
amou
nt o
f di
ffere
nces
le
gal r
eser
ve
Earn
ings
in
tere
st
st
ocks
, net
a
vaila
ble-
for-s
ale
NOTE
secu
ritie
s
Begi
nnin
g ba
lanc
e as
of J
anua
ry 1
, 200
6
6,09
0,74
9,42
4.00
10
,249
,352
.11
(2,8
03,1
05,2
84.7
1)
(18
,588
,060
.17)
(
24,9
22,8
81.7
8)
327
,238
,668
.17
1,39
2,97
7,95
2.69
59
6,23
6,73
6.29
5,
570,
835,
906.
60
Unr
ealiz
ed lo
ss fr
om c
hang
es in
car
ryin
g
am
ount
of a
vaila
ble-
for-s
ale
secu
ritie
s
-
-
-
(14,
794,
720.
71)
-
-
-
-
(14,
794,
720.
71)
Cur
renc
y tra
nsla
tion
diffe
renc
es
-
-
-
-
(2,
970,
838.
87)
-
-
-
(
2,97
0,83
8.87
)
Net
loss
not
reco
gniz
ed in
the
stat
emen
ts o
f inc
ome
-
-
-
(14,
794,
720.
71)
(2
,970
,838
.87)
-
-
-
(17,
765,
559.
58)
Net
pro
fit
-
-
-
-
-
-
1,19
0,76
6,21
4.91
-
1,19
0,76
6,21
4.91
Min
ority
inte
rest
-
-
-
-
-
-
-
5
9,35
4,95
1.96
5
9,35
4,95
1.96
Appr
opria
ted
- leg
al re
serv
e
21
-
-
-
-
-
5
9,53
8,31
0.75
(5
9,53
8,31
0.75
)
-
-
Div
iden
d
21
-
-
-
-
-
-
(5
12,0
03,3
21.3
6)
(40
,096
,074
.00)
(5
52,0
99,3
95.3
6)
Exer
cise
of w
arra
nt
20
2,
946,
178,
071.
00
(8,
344,
778.
60)
(2,1
04,0
64,8
98.3
2)
- -
-
-
-
833,
768,
394.
08
Endi
ng b
alan
ce a
s of
Dec
embe
r 31,
200
6
9,
036,
927,
495.
00
1
,904
,573
.51
(4,9
07,1
70,1
83.0
3)
(33
,382
,780
.88)
(
27,8
93,7
20.6
5)
386
,776
,978
.92
2,01
2,20
2,53
5.49
61
5,49
5,61
4.25
7,
084,
860,
512.
61
Begi
nnin
g ba
lanc
e as
of J
anua
ry 1
, 200
5
5,
831,
793,
766.
00
10,
982,
820.
20
(2,6
18,1
67,5
46.0
1)
2
8,05
8,10
4.49
(2
7,15
5,31
3.03
) 2
95,3
96,9
79.5
3 1,
121,
173,
313.
68
597,
935,
514.
05
5,24
0,01
7,63
8.91
Unr
ealiz
ed lo
ss fr
om c
hang
es in
car
ryin
g am
ount
of
av
aila
ble-
for-s
ale
secu
ritie
s
-
-
-
(4
6,64
6,16
4.66
)
-
-
-
-
(4
6,64
6,16
4.66
)
Cur
renc
y tra
nsla
tion
diffe
renc
es
-
-
-
-
2
,232
,431
.25
-
-
-
2,2
32,4
31.2
5
Net
gai
n (lo
ss) n
ot re
cogn
ized
in th
e st
atem
ents
of i
ncom
e
-
-
-
(46,
646,
164.
66)
2,23
2,43
1.25
-
-
-
(44,
413,
733.
41)
Net
pro
fit
-
-
-
-
-
-
63
6,83
3,77
2.82
-
636,
833,
772.
82
Min
ority
inte
rest
-
-
-
-
-
-
-
81,
261,
310.
44
81,
261,
310.
44
Appr
opria
ted
- leg
al re
serv
e
21
-
-
-
-
-
3
1,84
1,68
8.64
(3
1,84
1,68
8.64
)
-
-
Div
iden
d
21
-
-
-
-
-
-
(3
33,1
87,4
45.1
7)
(82
,960
,088
.20)
(4
16,1
47,5
33.3
7)
Exer
cise
of w
arra
nts
20
2
58,9
55,6
58.0
0
(73
3,46
8.09
) (1
84,9
37,7
38.7
0)
-
-
-
-
-
7
3,28
4,45
1.21
Endi
ng b
alan
ce a
s of
Dec
embe
r 31,
200
5
6,
090,
749,
424.
00
10,
249,
352.
11
(2,8
03,1
05,2
84.7
1)
(18
,588
,060
.17)
(
24,9
22,8
81.7
8)
327
,238
,668
.17
1,39
2,97
7,95
2.69
59
6,23
6,73
6.29
5,
570,
835,
906.
60
��
Hemaraj Land And Development Public Company Limited And Its Subsidiaries For the years ended December 31, 2006 and 2005
(Uni
t : In
Bah
t)
The
acc
omp
anyi
ng n
otes
to fi
nanc
ial s
tate
men
ts a
re a
n in
teg
ral p
art o
f the
se s
tate
men
ts.
Annual R
eport 2006 , H
em
ara
j La
nd
an
d D
eve
lop
me
nt P
ub
lic C
om
pa
ny L
imite
d
TH
E C
OMPA
NY O
NLY
Unre
alize
d
Reta
ined
ear
ning
s
gai
n (lo
ss)
Issu
ed a
nd
Pr
emiu
m
from
cha
nges
Cu
rrenc
y
paid
-up
War
rant
s (d
isco
unt)
in c
arry
ing
tra
nsla
tion
Appr
opria
ted
Earn
ings
To
tal
sh
are
capi
tal
on
com
mon
am
ount
of
diffe
renc
es
lega
l res
erve
Re
tain
ed
st
ocks
, net
a
vaila
ble-
for-s
ale
NOTE
secu
ritie
s
Beg
inni
ng b
alan
ce a
s of
Jan
uary
1, 2
006
6,09
0,74
9,42
4.00
10,
249,
352.
11
(2,8
03,1
05,2
84.7
1)
(18,
588,
060.
17)
(24
,922
,881
.78)
2
12,0
87,7
04.0
5 1,
508,
128,
916.
81
4,97
4,59
9,17
0.31
Unr
ealiz
ed lo
ss fr
om c
hang
es in
car
ryin
g am
ount
of
av
aila
ble-
for-s
ale
secu
ritie
s
-
-
-
(
14,7
94,7
20.7
1)
-
-
-
(
14,7
94,7
20.7
1)
Cur
renc
y tra
nsla
tion
diffe
renc
es
-
-
-
-
(2,9
70,8
38.8
7)
-
-
(2,9
70,8
38.8
7)
Net
loss
not
reco
gniz
ed in
the
stat
emen
ts o
f inc
ome
-
-
-
(14
,794
,720
.71)
(2,9
70,8
38.8
7)
-
-
(
17,7
65,5
59.5
8)
Net
pro
fit
-
-
-
-
-
-
1,19
0,76
6,21
4.91
1,
190,
766,
214.
91
App
ropr
iate
d - l
egal
rese
rve
21
-
-
-
-
-
59,
538,
310.
75
(59
,538
,310
.75)
-
Div
iden
d
21
-
-
-
-
-
-
(5
12,0
03,3
21.3
6)
(512
,003
,321
.36)
Exer
cise
of w
arra
nt
20
2,94
6,17
8,07
1.00
(8,3
44,7
78.6
0)
(2,1
04,0
64,8
98.3
2)
-
-
-
-
8
33,7
68,3
94.0
8
Endi
ng b
alan
ce a
s of
Dec
embe
r 31,
200
6
9
,036
,927
,495
.00
1,90
4,57
3.51
(4
,907
,170
,183
.03)
(
33,3
82,7
80.8
8)
(27
,893
,720
.65)
2
71,6
26,0
14.8
0 2,
127,
353,
499.
61
6,46
9,36
4,89
8.36
Beg
inni
ng b
alan
ce a
s of
Jan
uary
1, 2
005
5,83
1,79
3,76
6.00
10,
982,
820.
20
(2,6
18,1
67,5
46.0
1)
2
8,05
8,10
4.49
(
27,1
55,3
13.0
3)
180
,246
,015
.41
1,23
6,32
4,27
7.80
4,
642,
082,
124.
86
Unr
ealiz
ed lo
ss fr
om c
hang
es in
car
ryin
g am
ount
of
av
aila
ble-
for-s
ale
secu
ritie
s
-
-
-
(46
,646
,164
.66)
-
-
-
(46
,646
,164
.66)
Cur
renc
y tra
nsla
tion
diffe
renc
es
-
-
-
-
2,23
2,43
1.25
-
-
2,23
2,43
1.25
Net
gai
n (lo
ss) n
ot re
cogn
ized
in th
e st
atem
ents
of i
ncom
e
-
-
-
(46
,646
,164
.66)
2,
232,
431.
25
-
-
(
44,4
13,7
33.4
1)
Net
pro
fit
-
-
-
-
-
-
636
,833
,772
.82
6
36,8
33,7
72.8
2
App
ropr
iate
d - l
egal
rese
rve
21
-
-
-
-
-
31,
841,
688.
64
(31
,841
,688
.64)
-
Div
iden
d
21
-
-
-
-
-
-
(3
33,1
87,4
45.1
7)
(333
,187
,445
.17)
Exer
cise
of w
arra
nt
20
258
,955
,658
.00
(7
33,4
68.0
9)
(184
,937
,738
.70)
-
-
-
-
7
3,28
4,45
1.21
Endi
ng b
alan
ce a
s of
Dec
embe
r 31,
200
5
6,
090,
749,
424.
00
1
0,24
9,35
2.11
(2
,803
,105
,284
.71)
(
18,5
88,0
60.1
7)
(24
,922
,881
.78)
2
12,0
87,7
04.0
5 1,
508,
128,
916.
81
4,97
4,59
9,17
0.31
Statements Of Changes In Shareholders’ Equity (Continued)
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Statements Of Cash Flows
Hemaraj Land And Development Public Company Limited And Its Subsidiaries For the years ended December 31, 2006 and 2005
(Unit : In Baht)
The accompanying notes to financial statements are an integral part of these statements.
CASH FLOW FROM OPERATING ACTIVITIES
Net profits 1,190,766,214.91 636,833,772.82 1,190,766,214.91 636,833,772.82
Adjustments to reconcile net profit to net cash
provided by (used in)
Allowance for doubtful accounts 1,124,214.39 1,041,056.92 20,218.20 459,672.00
Share of profits from investments for using
the equity method - subsidiaries companies - - (316,143,723.99) (269,215,072.52)
Share of profits (losses) from investments
for using the equity method - associated
companies 4 (24,315,307.56) (960,339.31) (24,315,307.56) (960,339.31)
Loss on investment revaluation - 717,000.00 - -
Gain on exchange rate - (477,477.89) - (477,477.89)
Gain from sales of equipments (371,875.87) (448,483.39) (273,746.03) (160,737.47)
Gain from sales of investments (9,231,546.15) (23,012,815.81) (9,231,546.15) (23,012,815.81)
Depreciation and amortization 83,938,726.54 73,731,334.68 13,665,479.41 15,270,221.98
Loss on written off withholding tax
and value added tax 4,547,575.40 - 3,774,163.16 -
Reversal of provision for maintenance 2,682,830.00 - 2,682,830.00 -
Gain from debt compromise 18 (86,425,205.46) - (86,425,205.46) -
Increase in estimated loss from lawsuit - 18,000,000.00 - 18,000,000.00
Income from increase of salable area 22 (55,604,501.77) - (55,604,501.77) -
Adjustment of loss on decline in value of
real estate development cost 12 (44,654,950.00) - (44,654,950.00) -
Realization of deferred leasehold right income (1,372,507.54) (1,372,507.54) - -
Net profit of minority interests 59,354,856.96 81,261,310.44 - -
1,120,438,523.85 785,312,850.92 674,259,924.72 376,737,223.80
Decrease (increase) in operating assets :
Account receivables - related parties 421,302.28 (1,913,782.19) (1,027,200.00) (1,491,438.76)
Account receivables - other parties (25,836,452.98) (146,614,903.15) 13,224,624.83 (168,433,623.65)
Unbilled completed works (1,102,873,181.30) - (1,328,682,372.02) -
Cost of real estate developments (1,173,623,512.46) (514,106,824.98) (125,041,988.72) (212,988,371.41)
Other current assets 12,766,710.06 6,879,419.98 17,967,175.16 3,792,715.49
Land deposits 15,031,843.75 - 15,031,843.75 -
Other non - current assets (31,296,011.50) 18,738,366.61 5,735,336.18 6,624,370.02
Increase (decrease) in operating liabilities :
Trade account payables - related parties 1,435,311.91 341,914.22 (1,420,870.12) 1,630,680.00
Trade account payables - others 19,163,684.85 36,003,175.61 (17,911,381.15) 33,504,588.19
Unearned income and income received advance 7,198,930.14 (238,226,922.47) (15,260,858.31) (216,577,774.52)
Accrued interest expenses (847,232.88) (4,391,438.31) 4,110,438.36 732,054.79
Other account payables (1,894,702.78) (9,181,932.02) 200,000.00 (255,873.10)
Accrued income tax 209,469,782.69 7,218,007.25 167,645,729.31 4,941,562.48
Accrued specific business tax and transfer fee 67,178,623.41 16,579,708.09 63,740,146.13 27,588,441.55
Other current liabilities (8,881,035.95) 35,323,897.28 (24,879,114.11) 20,504,606.88
Retention payables 49,735,654.24 10,778,717.30 28,474,651.86 17,938,001.49
Guarantee payable (1,888,728.50) 16,972,036.83 68,600.00 (746,400.00)
Other non - current liabilities (4,169,298.54) 1,895,847.51 (3,669,559.48) 6,101,614.65
Net Cash Used in Operating Activities (848,469,789.71) 21,608,138.48 (527,434,873.61) (100,397,622.10)
CONSOLIDATED THE COMPANY ONLY
Note 2006 2005 2006 2005
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Statements Of Cash Flows (Continued)
Hemaraj Land And Development Public Company Limited And Its Subsidiaries For the years ended December 31, 2006 and 2005
(Unit : In Baht)
The accompanying notes to financial statements are an integral part of these statements.
CASH FLOWS FROM INVESTING ACTIVITIES
(Increase) decrease in current investments in
marketable securities 64,258,056.00 (110,402,400.00) 64,258,056.00 (110,402,400.00)
(Increase) decrease in short - term loans and
advance to related parties (8,075,001.21) (2,928,978.02) (621,477,120.56) (98,539,045.79)
Increase in investments for using the equity method (50,000,000.00) (274,999,970.00) (163,837,395.00) (271,632,598.74)
Decrease in other long term investment 32,500,000.00 - 32,500,000.00 -
(Increase) decrease in long - term loans
to other party 12,264,871.47 (587,835.36) 537,835.37 (587,835.36)
Cash received from sales of the
investments in securities - 127,660,839.96 - 127,660,839.96
Dividend received from subsidiary companies - - 160,143,926.00 281,439,876.80
Cash received from sales of buildings and equipments 383,177.57 96,157,173.69 285,046.73 559,882.02
Increase in buildings and equipments (150,753,964.49) (94,954,388.50) (7,171,608.08) (20,156,337.47)
Increase in assets for rent (19,964,749.63) (28,315,790.67) - (139,827.60)
Increase in sinking fund (6,956,176.77) (2,152,513.02) - -
Net Cash Used in Investing Activities (126,343,787.06) (290,523,861.92) (534,761,259.54) (91,797,446.18)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in bank overdrafts
and short-term loans from financial institutions (244,750,000.00) 234,330,763.20 5,250,000.00 85,000,000.00
Cash repaid to debt under conpromising agreement (156,095,342.49) - (156,095,342.49) -
Increase (decrease) in short - term loans and
advance from related parties (5,241,424.66) (7,998,057.39) 4,460,534.63 (6,006,562.60)
Increase (decrease) in long - term loans
from related party - - (100,000.00) 78,749,750.00
Increase (decrease) in long - term loans
from related persons (6,400,000.00) (14,229,001.01) - -
Increase in other long - term loans 1,164,095,480.66 486,386,356.24 753,800,000.00 380,200,000.00
Proceeds from exercise of warrants 833,768,394.08 73,284,451.21 833,768,394.08 73,284,451.21
Cash paid for dividend (509,569,430.06) (333,187,445.17) (509,569,430.06) (333,187,445.17)
Dividend paid to minority interest (40,096,074.00) (82,960,123.20) - -
Cash received from minority interest 95.00 35.00 - -
Net Cash Provided by (Used in)
Financing Activities 1,035,711,698.53 355,626,978.88 931,514,156.16 278,040,193.44
Adjustments from financial statement translations (2,970,838.87) 2,232,431.25 - -
Increase (decrease) in cash and cash equivalents, net 57,927,282.89 88,943,686.69 (130,681,976.99) 85,845,125.16
Cash and cash equivalents, beginning of years 1,061,545,698.98 972,735,009.14 793,180,630.68 707,334,496.20
Cash at banks pledged as collateral, beginning of years 30,446,907.96 30,313,911.11 22,967,276.00 22,968,285.32
Cash at banks pledged as collateral,
end of years 5 and 28 (48,000.00) (30,446,907.96) - (22,967,276.00)
Cash and cash equivalents, end of years 5 1,149,871,889.83 1,061,545,698.98 685,465,929.69 793,180,630.68
CONSOLIDATED THE COMPANY ONLY
Note 2006 2005 2006 2005
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Statements Of Cash Flows (Continued)
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Hemaraj Land And Development Public Company Limited And Its Subsidiaries For the years ended December 31, 2006 and 2005
(Unit : In Baht)
The accompanying notes to financial statements are an integral part of these statements.
OPERATING ACTIVITIES, INVESTING ACTIVITIES AND
FINANCING ACTIVITIES NOT AFFECTING CASH
Revaluation of available-for-sale securities
Decrease in marketable securities 14,794,720.71 30,998,239.94 14,794,720.71 30,998,239.94
Increase in unrealized loss from change in (14,794,720.71) (30,998,239.94) (14,794,720.71) (30,998,239.94)
carrying amount of available-for-sale securities
Increase among cost of real estate developments,
assets for rent, and property, plant and equipment
Increase in cost of real estate developments (56,884,894.92) (188,839,885.22) 12,164,186.21 -
Decrease in assets for rent 53,835,348.82 188,839,885.22 (12,164,186.21) -
Decrease in property, plant and equipment 3,049,546.10 - - -
Offset long-term loan to other party and
long-term loan from related party
Decrease in long-term loan to other party - - 11,727,036.10 -
Decrease in long-term loan from related party - - (11,727,036.10) -
Receivable from sinking fund refund
Increase in accounts receivable -
the Industrial Estate
Authority of Thailand - (133,528,958.98) - (100,427,682.06)
Decrease in sinking fund - 133,528,958.98 - 100,427,682.06
Decrease in investment in associated company
from its book value decrease at acquired date
Decrease in investments in associated company 10,250,000.00 - 10,250,000.00 -
Decrease in promissory note (10,250,000.00) - (10,250,000.00) -
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS
INFORMATION
Cash paid during the years for :
Interest expenses 167,912,646.89 115,662,576.99 51,955,895.10 14,927,628.50
Income tax expenses 86,004,337.06 35,653,357.58 48,569,764.11 7,235,945.94
CONSOLIDATED THE COMPANY ONLY
Note 2006 2005 2006 2005
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Notes to Financial Statements
Hemaraj Land And Development Public Company Limited And Its Subsidiaries For the years ended December 31, 2006 and 2005
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1. GENERAL INFORMATION On August 15, 1988, Hemaraj Land and Development Public Company Limited (“the Company”) was incorporated under the
Civil and Commercial Code of Thailand and was subsequently listed on the Stock Exchange of Thailand and transformed
as a Public Company Limited on July 10, 1992 and July 12, 1993, respectively.
The Company, which is the parent company of Hemaraj Group, operates its business as a real estate developer as
follows:
1. Industrial estate development projects located in the Eastern Seaboard of Thailand. The projects are operating under
the joint operation agreements with the Industrial Estate Authority of Thailand (“IEAT”), in the names of the Company
and its 3 subsidiaries as follows:
Company Name Industrial Estate Site Location
Hemaraj Land and Development Plc. Hemaraj Chonburi Sriracha district, Chonburi province
Eastern Industrial Estate Co., Ltd. Hemaraj Eastern (Map Ta Phut) Muang district, Rayong province
Eastern Seaboard Industrial Estate Eastern Seaboard (Rayong) Pluak Daeng district, Rayong province
(Rayong) Co., Ltd.
Hemaraj Eastern Seaboard Industrial Hemaraj Eastern Seaboard Pluak Daeng district,Rayong province
Estate Co.,Ltd.
2. A condominium for sale being developed under the Company’s name is called “The Park of Chidlom”, which located at
Chidlom Road, Bangkok.
3. Service business related to the mentioned industrial estates consisting of service providing for public utilities, prefabricated
factory for sale and lease, land rental, commercial plaza rental, pipe rack rental in Industrial Estates, building contractor
and others.
Hemaraj Group’s head office is located at 18th floor, UM Tower, 9 Ramkhamhaeng Road, Suanluang subdistrict, Suanluang
district, Bangkok, Thailand 10250.
As at December 31, 2006 and 2005, Hemaraj Group employs 242 and 199 staffs, respectively.
2. BASIS OF CONSOLIDATED FINANCIAL STATEMENT PRESENTATION 2.1Basisforpreparationandpresentationoffinancialstatements
The consolidated and company financial statements have been prepared in accordance with Thai generally accepted
accounting principles under the Accounting Act B.E. 2543, being those Thai Accounting Standards issued under the
Accounting Profession Act B.E. 2547, and the financial reporting requirements of the Securities and Exchange Commission
under the Securities and Exchange Act B.E. 2535.
The Company’s financial statements are prepared in the Thai language as required by Thai law, and translated into
English for the convenience of a reader of the financial statements.
Certain amounts in the 2005 financial statements have been reclassified to conform to the 2006 financial statement
presentation, without effect on previously reported net profit and shareholders’ equity.
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2.2Basisforpreparationandpresentationofconsolidatedfinancialstatements
The consolidated accounts incorporate the accounts of the Company and its majority owned directly or indirectly in
subsidiaries (over 50 % of their paid-up capital).
All subsidiaries were registered and incorporated in Thailand except H-International (BVI) Company Limited and Hemaraj
International Limited which were incorporated in British Virgin Islands and Cayman Islands, respectively.
In addition, the consolidated and the Company’s financial statements for the year ended December 30, 2006 and 2005,
include share of profits (losses) from associated companies as follows:
MILLION BAHT
2006 2005
Elyo-H Facilities Management Limited * 2.30 2.14
SIL Industrial Land Company Limited ** 23.86 (1.02)
Glow Hemaraj Energy Company Limited ** (1.84) (0.16)
Total 24.32 0.96
* Based on the information from the financial statements which were provided by the management and were not
audited by an auditor.
** Based on the information from the financial statements which were audited by other auditor.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 3.1 The Measurement Bases Used in Preparing the Financial Statements Other than those disclosed in other topics, significant accounting policies and other notes to the financial statements,
the financial statements are prepared on the historical cost basis.
3.2 Cash and Cash Equivalents Cash and cash equivalents represent cash on hand and at banks, and temporary investments net of cash at banks
pledged as collateral.
3.3 Current Investments Available-for-sale securities consist of investments in marketable securities, which are stated at fair value (net of allowance
for investments revaluation).
Gain (loss) on investment revaluation is included in the equity.
3.4 Trade Account Receivables and Allowance for Doubtful Accounts Trade account receivables represent real estate sale contract receivables under contract price, net of installments received
and deferred income. Public utilities service receivables are presented net of allowance for doubtful accounts.
Allowance for doubtful accounts is based on receivables which are overdue by more than 90 days.
3.5 Cost of Real Estate Developments Cost of real estate developments consists of land costs, development costs, pre-fabricated factory costs, condominium
construction costs, and interest expenses on loans for projects development, pre-fabricated factory, condominium
construction, land deposits and advances for construction costs. These costs are transferred to cost of sales when
revenue from sales is recognized.
Cost of real estate developments is stated at the lower of cost or net realizable value.
Loss on projects revaluation is included in the statements of income.
3.6 Capitalization of Borrowing Costs The Company and its subsidiaries have accounting policy to record interest expenses and fees on long-term loans and
loan from related persons for development projects by capitalizing to cost of real estate developments. The capitalization
will be suspended or ceased when the development projects are interrupted or completed.
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3.7 Investments and Loans
Investments
A. Investments in subsidiary and associated companies are recorded by using the equity method.
B. Other investments represent investments in related and other companies which are stated at cost net of provision
for impairment loss.
Impairment loss on other investments is included in the statements of income.
Loans
The Company and its subsidiaries have recorded allowance for doubtful debts by using uncollectible amounts, based
on a review of the current financial status and the repayment ability. The recognition of interest income is ceased when
overdue of more than 180 days.
3.8 Assets for Rent
Land for rent is stated at cost. Assets for rent, excepted land, are stated at cost less accumulated depreciation.
Depreciation is computed by the straight-line method over the estimated useful lives of the assets of 15 years for pipe
rack and 20 years for building. No depreciation is provided for land for rent.
3.9 Property, Plant and Equipment
Land is stated at cost. Property, plant and equipment are stated at cost less accumulated depreciation and provision
for impairment loss. Motor vehicles under financial lease are stated at fair value less accumulated depreciation.
Depreciation is computed by the straight-line method over the estimated useful lives of the assets of 5 years for
equipment and 20 years for building and structures. No depreciation is provided for land.
3.10 Leasehold Right and Land Held for Commercial Purposes
Leasehold right and land held for commercial purposes consist of land leasehold right, land costs, development
costs and capitalized interest on loans for undeveloped projects and projects which were temporarily suspended from
development.
Leasehold land and land held for commercial purposes are stated at the lower of cost or net realizable value.
Loss on projects revaluation is included in the statements of income.
3.11 Sinking Fund
The Company and its subsidiaries have recorded a fund for the major maintenance and replacement of utilities systems
and facilities for the customers in the industrial estate, under the joint operating agreements with the Industrial Estate
Authority of Thailand (“IEAT”) to be Deferred Sinking Fund and has recorded amortization to be cost of services by
the straight-line method over 20 years of useful lives.
3.12 Deferred Interest Expense on Hire-Purchase Agreement
Deferred interest expense on hire-purchase agreement, which is amortized according to the effective rate, presented
net from hire-purchase payable.
3.13 Impairment of Assets
The Company and its subsidiaries have evaluated the impairment of properties, plant and equipment and other assets
when the event is occurred or there is the situational change, which indicates that the recoverable amount of assets
will be lower than their book value. The Company and its subsidiaries will recognize the loss from impairment as an
expense in the statements of income.
3.14 Unearned Income and Income Received in Advance
Unearned income and income received in advance represents the amounts received from real estate and condominium
sales contracts, in excess of the revenue recognized by using the percentage of completion method, and from utilities
and rental income received in advance.
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3.15 Deferred Leasehold Right Income
Deferred leasehold right income represents leasehold right received from rental of land, building and pipe rack, and
is recognized as revenue over the period of rental contract.
3.16 Revenue and Expense Recognition
Other than those disclosed in other topics, the policy of the Company and its subsidiaries on revenue and expense
recognition are as follows:
A. Recognition of Revenue and Cost of Land Sales
Revenue from land sales are recognized upon signing of contract and receiving of installments by the percentage
of completion method, using the ratio of actual development costs incurred to total estimated development costs
for each projects excluding land cost. Cost of sales is calculated from the realized sales contracts based on the
ratio of total estimated project costs to total estimated project sales of each projects.
Total estimated costs and sales of each project shall be revised when there are significant changes in the estimated
costs and expected sales price of each project.
B. Recognition of Revenue and Cost of pre-fabricated Factory Sales
Revenue and cost of pre-fabricated factory sales are recognized upon signing of sales contract.
C. Recognition of Revenue and Cost of Condominium Sales
The Company recognizes the revenue and cost of condominium sales by the percentage of completed work
which is based on the proportion of actual costs (excluding cost of land) to the total estimated costs which are
estimated by the Company’s engineer advisor. The Company recognizes revenue when sales contracts have been
executed not less than 40% of the area opened for sales and collection received exceeds 20% of each contract
value, and the progress of completed construction work is more than 10%.
D. Recognition of Income and Cost of Services
Income and cost of services are recognised on the accrual basis. Service income represents income received
from providing of public utilities, potable water, raw water and reused water, waste water treatment processing,
additional work in building construction and rental services in respect of land, commercial plaza, warehouse,
factory, resident and pipe rack to the Industrial Estate, training center and business center. Cost of services
represents cost incurred from providing of such services.
Revenue and cost from mini and micro pre-fabricated factory construction are recognized upon signing of contract
and receiving of installments by the percentage of completion method.
The recognition of income from public utilities service is ceased when the customers cease their business operations
and have payment difficulties.
E. Gain from Compromising Debt
The Company has recorded the difference between the aggregate amount of debt and related accrued interest
expenses, which have been compromised under the Restructuring Agreements, as revenue in the statements of
income in full after the execution of the Restructuring Agreement.
F. Other Incomes and Expenses.
Other incomes, selling and administration expense, interest expense and other expenses are recognized on the
accrual basis.
3.17 Accounts in Foreign Currency
A. The financial statements of our overseas subsidiary company are translated into Baht for consolidation purposes
using rates of exchange as follows:
A.1 Assets and liabilities are translated at the average selling and purchasing price of exchange rate at the end
of the year.
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A.2 Revenues and expenses are translated at the average selling and purchasing price of exchange rate at the
end of each month.
A.3 Share capital is translated at the exchange rate on the transaction date.
Currency translation differences of foreign financial statements are included under shareholders’ equity.
B. Other foreign currency transactions occurring during the year are converted into Baht at the rates prevailing on
the dates of the transactions. Assets and liabilities at the end of the year are converted into Baht at the rates of
exchange on that date.
Gain and loss on exchange rate is included in the statements of income.
3.18 Corporate Income Tax Corporate income tax is recognized on the accrual basis.
3.19 Earnings per Share Basic earnings per share is computed by dividing net profit attributable to ordinary shareholders for the year by the
weighted average number of ordinary shares paid up and issued during the year.
Diluted earnings per share is computed by dividing net income attributable to ordinary shareholders for the year, as
adjusted for the effect of dilutive ordinary shares, by the weighted average number of ordinary shares paid up and
issued during the year plus the number of dilutive ordinary shares.
4. TRANSACTIONS WITH RELATED PARTIES The Company has certain transactions with its related parties. Significant inter-company transactions are eliminated from
the consolidated financial statements. Such transactions, which have been concluded on the term and the basis agreed
between the relevant parties.
Enterprises that directly or indirectly through one or more intermediaries, control, or under common control with the Company
by through same shareholders and co-directors as at December 31, were as follows:
PERCENTAGE OF HOLDING
COMPANY NAME TYPE OF BUSINESS RELATIONSHIP 2006 2005
Subsidiary Companies Eastern Industrial Estate Industrial Estate Development Common shareholders 99.99 99.99
Company Limited and co-directors
Eastern Seaboard Industrial Estate Industrial Estate Development ” 60.00 60.00
(Rayong) Company Limited
Hemaraj Eastern Seaboard Industrial Estate Development ” 99.99 99.99
Industrial Estate Company Limited
Eastern Pipeline Services Pipe Rack Rental ” 99.99 99.99
Company Limited
H-International (BVI) Company Limited Holding Company ” 100.00 100.00
Hemaraj International Limited Holding Company ” 100.00 100.00
H-Construction Management and Design and Construction ” 99.99 99.99
Engineering Company Limited Supervision Service
The Park Residence Company Limited Real Estate Development ” 99.99 99.99
and Service Management
Hemaraj Water Company Limited Water Resources Development ” 99.99 99.99
and Management
SME Factory Company Limited Sale and Lease of Factory ” 99.99 99.99
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ual R
epor
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blic
Co
mp
an
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imit
ed
PERCENTAGE OF HOLDING
COMPANY NAME TYPE OF BUSINESS RELATIONSHIP 2006 2005
Associated Companies
Elyo-H Facilities Management Limited Facilities Management Service Common shareholders 39.99 39.99
and co-directors
Glow Hemaraj Energy Electricity and ” 49.99 49.99
Company Limited Power Generation
SIL Industrial Land Company Limited Industrial Estate development ” 25.00 25.00
Rayong Industrial Land Industrial Estate development ” 25.00 25.00
Company Limited
Related Companies
Sriracha Harbor Public Port Service and Common shareholder 6.40 6.40
Company Limited Transportation and co-directors
Sun Tech Group Public Agriculture and Common directors - -
Company Limited Scrap Steel Business
Eastern Fluid Transport Pipe Rack Maintenance ” 15.00 15.00
Company Limited
Steel Top Company Limited Steel Manufacturer ” - -
and Distributor
Metal Star Company Limited Steel Manufacturer Relationship with
and Distributor directors
Siam Food Products Public Processing Agriculture Co-investors - -
Company Limited Producer
Teo Hong Silom Company Limited Facilities Management Service ” - -
Cementhai Property (2001) Holding Company ” - -
Public Company Limited
Cementhai Holding Company Limited Holding Company ” - -
Glow Energy Public Company Limited Energy ” - -
Tractebel Asia Company Limited * Energy ” - -
Related Person - Directors and - -
shareholders
* Changed from former co-investor, Elyo South Asia PTE.Ltd. to Tractebel Asia Company Limited.
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Annual R
eport 2006 , H
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ub
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om
pa
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imite
d
As at December 31, balances with related parties, which were shown in the balance sheets, were as follows:
Assets
THOUSAND BAHT
CONSOLIDATED THE COMPANY ONLY INTERCOMPANY TERM
2006 2005 2006 2005
Short - term loans and advance to related parties:Subsidiary companies:
Eastern Industrial Estate Company Limited - - 227,573 260,139 MLR, MLR + 1%
Eastern Seaboard Industrial Estate
(Rayong) Company Limited - - 38,915 51,382 5%-10% of contract price
and 5% of service
income received
Hemaraj Eastern Seaboard Industrial
Estate Company Limited - - 1,013,038 343,149 MLR, MLR + 1%
Eastern Pipeline Services Company Limited - - 15,931 91,176 MLR, MLR + 1%
H-Construction and Engineering Company Limited - - - 14,238 MLR, MLR + 1%
Hemaraj Water Company Limited - - 75,032 7 MLR, MLR + 1%
SME Factory Company Limited - - 3,011 6 -
Associated companies :
Elyo-H Facilities Management Company Limited 2,328 2,182 2,328 2,182 MLR, MLR + 1%
SIL Industrial Land Company Limited 10,552 2,839 10,552 2,839 5% of service income
received and MLR -1%
Rayong Industrial Land Company Limited 303 87 303 87 5% of service income received
Related company :
Sriracha Habor Public Company Limited* 11,355 11,355 11,355 11,355 Rate mutually agreed
between both parties
Total 24,538 16,463 1,398,038 776,560
Less Allowance for doubtful debts (11,355) (11,355) (11,355) (11,355)
Total 13,183 5,108 1,386,683 765,205
* The Company provided the provision for doubtful debt in full amount as the Company’s basis. This company entered into the
Business Reorganization Plan under the Bankruptcy Court, and now is under the process of the Business Reorganization
Plan. The Company has not yet adjusted the provision for the receivable under the Business Reorganization Plan and
will adjust accordingly when obtaining the settlement from it as the Plan.
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imit
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Balance of assets with related parties and its movement for the year ended December 31, 2006 were as follows:
THOUSAND BAHT
As of 31st During the period As of 31st
December, 2005 Increase Decrease December, 2006
Consolidated
Short - term loans and advance to related parties:
Associated companies 5,108 8,400 325 13,183
Related companies 11,355 - - 11,355
Total 16,463 8,400 325 24,538
Less Allowance for doubtful debts (11,355) - - (11,355)
Net 5,108 8,400 325 13,183
The Company Only
Short - term loans and advance to related parties:
Subsidiary companies 760,097 1,039,200 425,797 1,373,500
Associated companies 5,108 8,400 325 13,183
Related companies 11,355 - - 11,355
Total 776,560 1,047,600 426,122 1,398,038
Less Allowance for doubtful debts (11,355) - - (11,355)
Net 765,205 1,047,600 426,122 1,386,683
Liabilities
THOUSAND BAHT
CONSOLIDATED THE COMPANY ONLY INTERCOMPANY
2006 2005 2006 2005 COST POLICY
Short - term loans and advance
from related parties:
Subsidiary companies :
Eastern Industrial Estate Company Limited - - - 33,101 -
Eastern Seaboard Industrial Estate
(Rayong) Company Limited - - 56,018 18,456 -
Associated company :
Glow Hemaraj Energy Company Limited 26,800 - - - -
Related company :
Siam Food Products Public
Company Limited - 32,041 - - 4.5% and 5.25%
Total 26,800 32,041 56,018 51,557
Long - term loans from related party:
Subsidiary company :
H-International (BVI) Company Limited - - 1,153,196 1,276,110 -
Long - term loans from related persons:
Current portion of long-term loans 6,400 6,400 - - MLR
Long-term loans - 6,400 - - -
Total 6,400 12,800 - - -
��
Annual R
eport 2006 , H
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Balance of Liabilities with related parties and its movement for the year ended December 31, 2006 were as follows:
THOUSAND BAHT
As of 31st During the period As of 31st
December, 2005 Increase Decrease December, 2006
Consolidated
Short - term loans and advance from related parties 32,041 27,619 32,860 26,800
Long - term loans from related persons 12,800 - 6,400 6,400
The Company Only
Short - term loans and advance from related parties:
Subsidiary companies 51,557 88,790 84,329 56,018
Long - term loans from related party:
Subsidiary company 1,276,110 - 122,914 1,153,196
The significant transactions with related parties for the years ended December 31, were as follows:
MILLION BAHT
CONSOLIDATED THE COMPANY ONLY INTERCOMPANY
2006 2005 2006 2005 COST POLICY
Service income 2.61 1.32 1.62 0.33 Market price
Interest income 0.57 0.89 69.97 36.81 MLR - 1% to
MLR + 1%
Commission and 9.97 2.38 70.15 67.19 5% - 10% of
Management Income contract price and
5% of service
income received
Cost of service 9.07 8.50 1.52 1.34 Market price
Interest expenses 8.02 0.92 - - 4.5% and 5.25%
�0
Ann
ual R
epor
t 200
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blic
Co
mp
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imit
ed
As
at D
ecem
ber
31,
the
Com
pan
y’s
inve
stm
ents
usi
ng th
e eq
uity
met
hod
wer
e as
follo
ws:
Pe
rcen
tage
of
Inve
stm
ents
(Mill
ion
Baht
) Di
vide
nd fo
r
Pa
id-u
p Ca
pita
l sh
ares
hel
d by
th
e ye
ar e
nded
Com
pany
Type
of B
usin
ess
(Mill
ion
Baht
) th
e Co
mpa
ny (P
erce
nt)
Cost
met
hod
Equi
ty m
etho
d De
cem
ber 3
1
2006
20
05
2006
20
05
2006
20
05
2006
20
05
2006
20
05
Subs
idia
ry C
ompa
nies
:
Com
mon
sha
reho
lder
s an
d co
-dire
ctor
s
East
ern
Indu
stria
l Est
ate
Com
pany
Lim
ited
Indu
stria
l es
tate
dev
elop
men
t 40
0.00
40
0.00
99
.99
99.9
9 40
0.00
40
0.00
73
7.77
54
4.47
10
0.00
15
7.00
East
ern
Seab
oard
Indu
stria
l Est
ate
(R
ayon
g) C
ompa
ny L
imite
d In
dust
rial
esta
te d
evel
opm
ent
358.
00
358.
00
60.0
0 60
.00
214.
80
214.
80
911.
59
885.
97
60.1
4 12
4.44
Hem
araj
Eas
tern
Sea
boar
d In
dust
rial E
stat
e
C
ompa
ny L
imite
d In
dust
rial
esta
te d
evel
opm
ent
595.
00
595.
00
99.9
9 99
.99
683.
87
683.
87
612.
17
663.
63
- -
East
ern
Pipe
line
Serv
ices
Com
pany
Lim
ited
(1)
Pipe
rack
rent
al
100.
00
3.75
99
.99
99.9
9 75
.00
2.81
58
.70
(19.
93)
- -
H-In
tern
atio
nal (
BVI
) Com
pany
Lim
ited
(2)
Hol
ding
com
pany
0.
08
0.08
10
0.00
10
0.00
0.
08
0.08
11
69.1
9 1,
298.
43
- -
Hem
araj
Inte
rnat
iona
l Lim
ited
(3)
Hol
ding
com
pany
0.
03
0.03
10
0.00
10
0.00
0.
03
0.03
0.
04
0.04
-
-
H-C
onst
ruct
ion
Man
agem
ent a
nd E
ngin
eerin
g D
esig
n an
d co
nstru
ctio
n
C
ompa
ny L
imite
d (4
) su
perv
isio
n se
rvic
es
17.1
5 0.
25
99.9
9 99
.99
17.1
5 0.
25
7.14
(8
.80)
-
-
The
Park
Res
iden
ce C
ompa
ny L
imite
d R
eal e
stat
e de
velo
pmen
t and
se
rvic
e m
anag
emen
t 0.
25
0.25
99
.99
99.9
9 0.
25
0.25
0.
75
0.19
-
-
Hem
araj
Wat
er C
ompa
ny L
imite
d (5
) W
ater
reso
urce
s de
velo
pmen
t
an
d m
anag
emen
t 25
.00
0.25
99
.99
99.9
9 25
.00
0.25
22
.70
0.23
-
-
SME
Fact
ory
Com
pany
Lim
ited
Sale
and
leas
e of
fact
ory
0.25
0.
25
99.9
9 99
.99
0.25
. 0.
25.
0.20
0.
23
- -
In
vest
men
ts fo
r Usi
ng th
e Eq
uity
Met
hod
- Su
bsid
iary
Com
pani
es
1,41
6.43
1,
302.
59
3,52
0.25
3,
364.
46
160.
14
281.
44
Asso
ciat
ed C
ompa
nies
:
Com
mon
sha
reho
lder
s an
d co
-dire
ctor
s
Elyo
-H F
acili
ties
Man
agem
ent L
imite
d Fa
cilit
ies
man
agem
ent s
ervi
ces
50.0
0 50
.00
39.9
9 39
.99
20.0
0 20
.00
19.1
8 16
.88
- -
Glo
w H
emar
aj E
nerg
y C
ompa
ny L
imite
d (6
) El
ectri
city
and
pow
er g
ener
atio
n 11
0.00
10
.00
49.9
9 49
.99
54.9
9 5.
00
53.0
0 4.
84
- -
SIL
Indu
stria
l Lan
d C
ompa
ny L
imite
d (7
) In
dust
rial e
stat
e de
velo
pmen
t 50
0.00
50
0.00
25
.00
25.0
0 23
9.75
25
0.00
26
2.58
24
8.98
-
-
Ray
ong
Indu
stria
l Lan
d C
ompa
ny L
imite
d (8
) In
dust
rial e
stat
e de
velo
pmen
t 1,
000.
00
1,00
0.00
25
.00
25.0
0 -
- -
- -
-
In
vest
men
t for
Usi
ng th
e Eq
uity
Met
hod
- A
ssoc
iate
d C
ompa
nies
31
4.74
27
5.00
33
4.76
27
0.70
-
-
Tota
l Inv
estm
ent f
or U
sing
the
Equi
ty M
etho
d
1,
731.
17
1,57
7.59
3,
855.
01
3,63
5.16
16
0.14
28
1.44
��
Annual R
eport 2006 , H
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ub
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om
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imite
d
(1) 74.99% directly held by the Company and 25% indirectly held by Eastern Industrial Estate Company Limited.
During the third quarter of 2006, the Company and Eastern Industrial Estate Company Limited had paid the share capital
increase to Eastern Pipeline Services Company Limited in the total amount of Baht 96.25 million.
(2) H-International (BVI) Company Limited was registered in the British Virgin Islands (US. currency is used for business
operation).
(3) Hemaraj International Limited was registered in the Cayman Islands (US. currency is used for business operation). The
Company obtained the information from the financial statements which were prepared by the subsidiary’s management
and were not audited by an auditor. Nevertheless, its total assets and net profit presented in the financial statements
were immateriality to the consolidated financial statements.
(4) During the fourth quarter of 2006, the Company had paid up the existing share capital and the share capital increase
to H-Construction and Engineering Company Limited in the amount of Baht 16.90 million.
(5) During the second quarter of 2006, the Company had paid up the existing share capital and the share capital increase
to Hemaraj Water Company Limited in the amount of Baht 24.75 million.
(6) During the first quarter of 2006, the Company had paid the share capital increase to Glow Hemaraj Energy Company Limited
in the amount of Baht 50 million in respect of share increasing to maintain the existing proportion of shareholding.
(7) During 2005, the Company acquired 25% investment from the shareholders’ equity in the amount of Baht 1,000 million
presented in the Proforma Balance Sheet as of April 30, 2005 which was regularly prepared by the management of SIL
Industrial Land Company Limited. Later, the Company obtained the reviewed financial statements as of April 30, 2005
reviewed by other auditor which presented the shareholders’ equity in the amount of Baht 915.10 million. The discrepancy
of the shareholders’ equity was adjusted to decrease the investment in that company in the second quarter of 2006.
(8) 25% directly held by the Company in SIL Industrial Land Company Limited that has held 99.99% in Rayong Industrial
Land Company.
Other long-term investments - related parties, net
THOUSAND BAHT
CONSOLIDATED THE COMPANY ONLY
2006 2005 2006 2005
Investments in related parties
Sriracha Harbor Public Company Limited 75,300 75,300 75,300 75,300
Eastern Fluid Transport Company Limited 1,500 1,500 - -
Total 76,800 76,800 75,300 75,300
Less Provision for impairment loss on investments (75,300) (75,300) (75,300) (75,300)
Other Long-term Investments - Related Parties, net 1,500 1,500 - -
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ual R
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imit
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5. CASH AND CASH EQUIVALENTS For the purpose of preparation of the statements of cash flows in accordance with the relevant Thai Accounting Standard,
as of December 31, cash and cash equivalents consisted of:
THOUSAND BAHT
CONSOLIDATED THE COMPANY ONLY
2006 2005 2006 2005
Cash and deposits at financial institutions 1,149,830 761,520 685,450 493,180
Current investments
- Time deposits 90 330,473 16 322,968
Less Cash at banks pledged as collateral and
deposits with maturity dates longer than 3 months (48) (30,447) - (22,968)
Cash and Cash Equivalents 1,149,872 1,061,546 685,466 793,180
6. TRADE ACCOUNT RECEIVABLES, NET As of December 31, trade account receivables, net consisted of:
THOUSAND BAHT
CONSOLIDATED THE COMPANY ONLY
2006 2005 2006 2005
Related parties
Service receivables
Accrued service income 7,406 7,827 1,027 -
Less Allowance for doubtful accounts (7,405) (7,405) - -
Trade Account Receivables -
Related Parties, net 1 422 1,027 -
Other parties
Service receivables
Accrued service income 102,517 67,461 25,071 26,418
Less Allowance for doubtful accounts (20,045) (20,575) (17,154) (17,593)
Service receivables, net 82,472 46,886 7,917 8,825
Real estate sales contracts receivables
Total value of contracts signed 22,665,684 20,070,362 7,523,753 6,720,596
Installments due 18,387,496 16,587,290 4,190,735 3,724,963
Less Installments received (18,380,177) (16,569,097) (4,190,446) (3,712,337)
Installments receivables, net 7,319 18,193 289 12,626
Trade Account Receivables -Other Parties, net 89,791 65,079 8,206 21,451
��
Annual R
eport 2006 , H
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ub
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om
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imite
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As at December 31, unbilled completed work and unearned income comprised:
THOUSAND BAHT
CONSOLIDATED THE COMPANY ONLY
2006 2005 2006 2005
Accumulated amount recognised as revenue on
percentage of completion basis 20,001,802 17,108,653 5,669,546 3,866,865
Less Installments due (18,387,496) (16,587,290) (4,190,735) (3,724,963)
Net 1,614,306 521,363 1,478,811 141,902
The balance comprises :
Unbilled completed work 1,736,416 633,543 1,485,488 156,806
Unearned income (122,110) (112,180) (6,677) (14,904)
Net 1,614,306 521,363 1,478,811 141,902
For the allowance for doubtful accounts of related party receivables and other parties, which obtain facility services in the
industrial estate, are provided and charged by the Company. With the economic crisis in 1997 in Thailand, these companies
have encountered with operation problem and the Company provided the provision for doubtful debt in full amount as the
Company’s basis. Consequently, these companies entered into the Debt Restructure under CDRAC or Business Reorganization
Plan under the Bankruptcy Court. The Company has not yet adjusted the provision for these receivables under the Business
Reorganization Plan until obtaining the settlement as the Plan or debt restructure from each receivable.
As of December 31, the real estate sales contracts receivables and accrued service income classified by aging were as
follows:
THOUSAND BAHT
CONSOLIDATED THE COMPANY ONLY
2006 2005 2006 2005
Real estate sale contracts receivables
Not yet due 7,030 - - -
Less than 3 months - 18,193 - 12,626
Over 3 months to 12 months 188 - 188 -
Over 12 months 101 - 101 -
Total Real Estate Sale
Contracts Receivables 7,319 18,193 289 12,626
Accrued service income
Less than 3 months 82,472 46,851 7,917 8,825
Over 3 months to 6 months 20 495 7 460
Over 6 months to 12 months 7 221 7 -
Over 12 months 20,018 19,894 17,140 17,133
102,517 67,461 25,071 26,418
Less Allowance for doubtful accounts (20,045) (20,575) (17,154) (17,593)
Accrued service income, net 82,472 46,886 7,917 8,825
Trade Account Receivables - Other Parties, net 89,791 65,079 8,206 21,451
��
Ann
ual R
epor
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blic
Co
mp
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imit
ed
7. UNEARNED INCOME AND INCOME RECEIVED IN ADVANCE As of December 31, unearned income and income received in advance consisted of:
THOUSAND BAHT
CONSOLIDATED THE COMPANY ONLY
2006 2005 2006 2005
Unearned income
Land and condominium sale contracts 7,128,177 8,638,527 146,602 301,896
Less Installments received (6,427,002) (8,461,884) (134,459) (152,838)
Installments receivables 701,175 176,643 12,143 149,058
Less Deferred income (823,285) (288,823) (18,820) (163,962)
Unearned income (122,110) (112,180) (6,677) (14,904)
Income received in advance – Service and Rental (12,121) (14,852) (2,224) (9,258)
Total Unearned Income and
Income Received in Advance (134,231) (127,032) (8,901) (24,162)
8. COST OF REAL ESTATE DEVELOPMENTS, NET As at December 31, cost of real estate developments, net consisted of:
THOUSAND BAHT
CONSOLIDATED THE COMPANY ONLY
2006 2005 2006 2005
Land cost under developments 6,589,241 5,907,204 1,643,313 1,638,598
Project development costs 9,217,820 7,519,804 2,635,531 1,834,072
Capitalized interest expenses 2,225,654 2,097,898 680,965 642,543
Additional utility costs 8,875 8,028 8,400 7,534
Advance for constructions 395,486 123,069 386,337 115,614
Total 18,437,076 15,656,003 5,354,546 4,286,361
Less Accumulated costs transferred to
cost of land sales (11,115,581) (9,621,118) (3,513,233) (2,586,634)
Accumulated costs transferred
to assets for rent (1,057,749) (943,482) (21,104) -
Accumulated costs transferred for
debt settlement (143,838) (143,838) (143,838) (143,838)
Cost of Real Estate Developments, net 6,119,908 4,947,565 1,676,371 1,507,889
Capitalised interest expense for the year ended
December 31 included in cost of real
estate developments 127,757 83,969 32,422 2,944
��
Annual R
eport 2006 , H
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ub
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om
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imite
d
Information of cost of real estate developments of Hemaraj Land and Development Public Company Limited, Eastern Industrial
Estate Company Limited, Eastern Seaboard Industrial Estate (Rayong) Company Limited and Hemaraj Eastern Seaboard
Industrial Estate Company Limited is as follow:-
Valuation Stated in the Financial Statements
As at December 31, 2006 and 2005, cost of real estate developments is stated at the lower of cost and net realisable value
for the projects in the same area.
Obligation of Assets as at December 31, 2006 and 2005
The portion of land in the projects of the Company and the subsidiaries has been mortgaged as collateral for loans from
local financial institutions, other companies, related persons and other persons and portion of land has been pledged as
collateral in the court which is in the process of withdrawal.
9. OTHER LONG-TERM INVESTMENTS, NET THOUSAND BAHT
CONSOLIDATED THE COMPANY ONLY
2006 2005 2006 2005
Glow IPP Company Limited
(Formerly : Bowin Power Company Limited) 142,500 175,000 142,500 175,000
Other company 1,000 1,000 - -
Total 143,500 176,000 142,500 175,000
Less Provision for impairment loss on investment (717) (717) - -
Other Long-Term Investments, Net 142,783 175,283 142,500 175,000
In the second quarter of 2006, Glow IPP Company Limited registered to decrease its share capital by 65,000,000 shares at
the par value of Baht 10. The Company received cash from such 3,250,000 shares decreased with the par value of Baht
10, totaling Baht 32,500,000 in the forth quarter of 2006.
��
Ann
ual R
epor
t 200
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He
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raj
La
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Pu
blic
Co
mp
an
y L
imit
ed
10. A
SSET
S FO
R R
ENT,
NET
A
s at
Dec
emb
er 3
1, 2
006
and
200
5, a
sset
s fo
r re
nt, n
et c
onsi
sted
of:
(U
nit :
Tho
usan
d B
aht)
Cha
nges
in C
ost
Cha
nges
in A
ccum
ulat
ed D
epre
ciat
ion
Net
Boo
k Va
lue
Dis
posa
l/
Dis
posa
l/
Beg
inni
ng
Add
ition
Tr
ansf
er
Endi
ng
Beg
inni
ng
Dep
reci
atio
n
Tran
sfer
En
ding
B
egin
ning
En
ding
C
onso
lidat
ed
La
nd (
*)
175,
764
24,5
72
(14,
072)
18
6,26
4 -
- -
- 17
5,76
4 18
6,26
4
B
uild
ing
s (*
)
731,
076
99,1
81
(62,
817)
76
7,44
0 81
,758
36
,747
(9
,645
) 10
8,86
0 64
9,31
8 65
8,58
0
B
uild
ing
imp
rove
men
ts
2,36
7 1,
570
(206
) 3,
731
34
156
(9)
181
2,33
3 3,
550
P
ipe
rack
16
2,95
5 -
- 16
2,95
5 61
,756
10
,869
-
72,6
25
101,
199
90,3
30
C
onst
ruct
ion
in p
rog
ress
-
15,9
18
- 15
,918
-
- -
- -
15,9
18
To
tal
1,
072,
162
141,
241
(77
,095
) 1,
136,
308
143,
548
47,7
72
(9,6
54)
181,
666
928,
614
954,
642
Th
e C
ompa
ny o
nly
La
nd (
*)
28,0
54
2,96
8 (4
,582
) 26
,440
-
- -
- 28
,054
26
,440
B
uild
ing
s (*
)
26,2
43
18,1
36
(5,2
21)
39,1
58
3,84
0 1,
324
(885
) 4,
279
22,4
03
34,8
79
B
uild
ing
imp
rove
men
ts
140
- (2
3)
117
2 6
(1)
7 13
8 11
0
To
tal
54
,437
21
,104
(9
,826
) 65
,715
3,
842
1,33
0 (8
86)
4,28
6 50
,595
61
,429
Con
solid
ated
Th
e C
ompa
ny O
nly
200
6 20
05
2006
20
05
D
epre
ciat
ions
whi
ch in
clud
ed in
sta
tem
ents
of i
ncom
e fo
r th
e ye
ars
end
ed D
ecem
ber
31:
Cos
t of s
ervi
ces
47,7
72
40,8
48
1,33
0 1,
314
(*
) La
nd a
nd B
uild
ing
s w
ere
tran
sfer
red
from
real
est
ate
dev
elop
men
t cos
t.
��
Annual R
eport 2006 , H
em
ara
j La
nd
an
d D
eve
lop
me
nt P
ub
lic C
om
pa
ny L
imite
d
11. P
RO
PER
TY, P
LAN
T A
ND
EQ
UIP
MEN
T, N
ET
As
at D
ecem
ber
31,
200
6 an
d 2
005,
pro
per
ty, p
lant
and
eq
uip
men
t, ne
t con
sist
ed o
f:
(U
nit :
Tho
usan
d B
aht)
Cha
nges
in C
ost
Cha
nges
in A
ccum
ulat
ed D
epre
ciat
ion
Net
Boo
k Va
lue
Dis
posa
l/
Dis
posa
l/
Beg
inni
ng
Add
ition
Tr
ansf
er
Endi
ng
Beg
inni
ng
Dep
reci
atio
n
Tran
sfer
En
ding
B
egin
ning
En
ding
C
onso
lidat
ed
Land
17
,277
3,
049
- 20
,326
-
- -
- 17
,277
20
,326
Bui
ldin
gs
and
str
uctu
re
275,
076
5 -
275,
081
73,3
71
11,4
92
- 84
,863
20
1,70
5 19
0,21
8
Bui
ldin
g im
pro
vem
ents
7,
447
2,94
7 -
10,3
94
5,02
7 1,
264
- 6,
291
2,42
0 4,
103
Offi
ce e
qui
pm
ent,
furn
iture
and
fixt
ure
89,0
32
11,8
92
(361
) 10
0,56
3 74
,460
6,
837
(350
) 80
,947
14
,572
19
,616
Vehi
cles
72,1
39
3,66
4 (2
,162
) 73
,641
29
,870
12
,550
(2
,162
) 40
,258
42
,269
33
,383
Raw
wat
er p
ipe
3,65
7 2,
865
- 6,
522
1,85
6 39
0 -
2,24
6 1,
801
4,27
6
Con
stru
ctio
n in
pro
gre
ss
70,6
56
129,
599
(218
) 20
0,03
7 -
- -
- 70
,656
20
0,03
7
Tota
l
53
5,28
4 15
4,02
1 (2
,741
) 68
6,56
4 18
4,58
4 32
,533
(2
,512
) 21
4,60
5 35
0,70
0 47
1,95
9
Less
Res
erve
for
imp
airm
ent l
oss
of a
sset
s *
(10,
166)
(1
0,16
6)
Less
Res
erve
for
loss
of p
osse
ssiv
e rig
ht o
ver
the
land
and
offi
ce b
uild
ing
s **
(3
6,95
6)
(36,
956)
Pro
per
ty, P
lant
and
Eq
uip
men
t, ne
t
30
3,57
8 42
4,83
7
��
Ann
ual R
epor
t 200
6 ,
He
ma
raj
La
nd
an
d D
eve
lop
me
nt
Pu
blic
Co
mp
an
y L
imit
ed
(U
nit :
Tho
usan
d B
aht)
Cha
nges
in C
ost
Cha
nges
in A
ccum
ulat
ed D
epre
ciat
ion
Net
Boo
k Va
lue
Dis
posa
l/
Dis
posa
l/
Beg
inni
ng
Add
ition
Tr
ansf
er
Endi
ng
Beg
inni
ng
Dep
reci
atio
n
Tran
sfer
En
ding
B
egin
ning
En
ding
Th
e C
ompa
ny O
nly
Land
2,
936
- -
2,93
6 -
- -
- 2,
936
2,93
6
Bui
ldin
gs
and
str
uctu
re
45,3
49
- -
45,3
49
11,3
28
- -
11,3
28
34,0
21
34,0
21
Bui
ldin
g im
pro
vem
ents
3,
212
- -
3,21
2 2,
054
359
- 2,
413
1,15
8 79
9
Offi
ce e
qui
pm
ent,
furn
iture
and
fixt
ure
50,8
06
3,21
4 (3
62)
53,6
58
42,1
76
3,20
0 (3
50)
45,0
26
8,63
0 8,
632
Vehi
cles
41,0
74
1,10
0 (1
,935
) 40
,239
19
,394
6,
955
(1,9
35)
24,4
14
21,6
80
15,8
25
Raw
wat
er p
ipe
3,65
8 2,
350
- 6,
008
1,85
6 35
6 -
2,21
2 1,
802
3,79
6
Con
stru
ctio
n in
pro
gre
ss
5,33
7 72
6 (2
18)
5,84
5 -
- -
- 5,
337
5,84
5
Tota
l
15
2,37
2 7,
390
(2,5
15)
157,
247
76,8
08
10,8
70
(2,2
85)
85,3
93
75,5
64
71,8
54
Less
Res
erve
for
imp
airm
ent l
oss
of a
sset
s *
(724
) (7
24)
Less
Res
erve
for
loss
of p
osse
ssiv
e rig
ht o
ver
the
land
and
offi
ce b
uild
ing
s **
(3
6,95
6)
(36,
956)
Pro
per
ty, P
lant
and
Eq
uip
men
t, ne
t
37
,884
34
,174
Con
solid
ated
Th
e C
ompa
ny O
nly
200
6 20
05
2006
20
05
Dep
reci
atio
ns w
hich
incl
uded
in s
tate
men
ts o
f inc
ome
for
the
year
s en
ded
Dec
emb
er 3
1:
C
ost o
f ser
vice
s
15
,704
10
,404
52
0 37
3
Sel
ling
and
ad
min
istr
ativ
e ex
pen
ses
16,8
29
17,1
48
10,3
50
10,5
59
Tota
l Dep
reci
atio
n fo
r th
e ye
ars
32,5
33
27,5
52
10,8
70
10,9
32
Cos
t of t
he p
rop
erty
, pla
nt a
nd e
qui
pm
ent w
hich
hav
e b
een
fully
dep
reci
ated
but
are
stil
l in
use
80,5
01
59,2
86
41,3
85
36,1
47
* R
eser
ve fo
r im
pai
rmen
t los
s of
ass
ets
is p
rovi
ded
for
the
ceas
ed c
onst
ruct
ion
in p
rog
ress
.
**
Res
erve
for l
oss
of th
e p
osse
ssiv
e rig
ht o
ver t
he la
nd a
nd o
ffice
bui
ldin
g in
the
amou
nt o
f Bah
t 36.
96 m
illio
n as
the
man
agem
ent o
f the
Com
pan
y co
nsid
ered
that
the
Com
pan
y m
ight
not
rece
ive
the
tran
sfer
of s
uch
pos
sess
ive
right
.
��
Annual R
eport 2006 , H
em
ara
j La
nd
an
d D
eve
lop
me
nt P
ub
lic C
om
pa
ny L
imite
d
12. LEASEHOLD LAND AND LAND HELD FOR COMMERCIAL PURPOSES, NET As at December 31, leasehold land and land held for commercial purposes, net consisted of:
THOUSAND BAHT
CONSOLIDATED THE COMPANY ONLY
2006 2005 2006 2005
Land bank 10,201 10,201 10,201 10,201
Land cost of projects suspended
from developments 1,135,711 1,135,711 1,135,711 1,135,711
Suspended development project costs 268,034 268,034 268,034 268,034
Capitalized interest expenses 556,119 556,119 556,119 556,119
Leasehold land 77,077 77,077 77,077 77,077
Total 2,047,142 2,047,142 2,047,142 2,047,142
Less Accumulated costs transferred
for debt settlement (645,413) (645,413) (645,413) (645,413)
Accumulated cost of sales (841,514) (841,514) (841,514) (841,514)
Loss on projects evaluation (234,496) (279,151) (234,496) (279,151)
Leasehold Land and Land Held for
Commercial Purposes, net 325,719 281,064 325,719 281,064
Information of leasehold land and land held for commercial purpose is as follows:-
Valuation Stated in the Financial Statements
In 2006, the leasehold land and land held for commercial purposes have been appraised by an independent appraisal
company which caused surplus from assets appraisal in 2004. The Company recorded the adjustment of loss on decline
in value of real estate development cost amounting to Baht 44.65 million in statements of income for the year then ended
December 31, 2006.
Obligation of Assets as at December 31, 2006 and 2005
Portion of land in the projects of the Company and the subsidiaries has been mortgaged as collateral for loans from local
financial institutions.
13. SINKING FUND, NET
As disclosed in the Note 29 to the financial statements, the Company and its subsidiaries had entered into the joint operating
agreements with the Industrial Estate Authority of Thailand (“IEAT”). The Company and its subsidiaries are committed to be
a provider and to set up a fund (“Sinking Fund”) for major maintenance and replacement of utilities systems and facilities for
the customers in the industrial estate. The Company and its subsidiaries had made the payment by cash and by transferring
of partial piece of land for the Sinking Fund, and in addition, the Company and its subsidiaries had transferred the withdrawal
rights over the Sinking fund to IEAT per the terms and conditions of such agreements. The Company and its subsidiaries
have recorded the cash paid and land transferred to IEAT for the fund under Sinking Fund accounts. The amortization period
of 20 years is applied on the useful future economic life of Sinking Fund under the joint contract agreements with IEAT.
On March 29, 2005, the Company and another subsidiary had provided the amendment of the agreement with IEAT resulting
in a decrease in the Sinking Fund in amount of Baht 99.55 million and 32.77 million, respectively.
�0
Ann
ual R
epor
t 200
6 ,
He
ma
raj
La
nd
an
d D
eve
lop
me
nt
Pu
blic
Co
mp
an
y L
imit
ed
As at December 31, sinking fund, net consisted of:
THOUSAND BAHT
CONSOLIDATED THE COMPANY ONLY
2006 2005 2006 2005
Sinking Fund 282,339 275,383 151,955 151,955
Less Refund of Sinking Fund from IEAT (132,318) (132,318) (99,550) (99,550)
Sinking Fund balance 150,021 143,065 52,405 52,405
Less Accumulated amortization (84,464) (80,830) (26,542) (25,077)
Sinking Fund, net 65,557 62,235 25,863 27,328
14. SHORT-TERM LOANS FROM FINANCIAL INSTITUTIONS
Short-termloansfromlocalfinancialinstitutions
As at December 31, 2006 and 2005, the Company and its subsidiary have short-term loans from local financial institutions
amount of Baht 380 million and Baht 635 million (The Company Only in the amount of Baht 380 million and Baht 385 million),
respectively. Its interest rate is charged at 6.15% and 6.00% per annum (2005: 4.50%, 4.25% and 3.00% per annum)
Bank overdraft
As at December 31, 2006, the Company and its subsidiaries have overdraft credit limit from local financial institutions in the
amount of Baht 140 million. The interest rate is charged at MOR and MOR+0.50% per annum. Such overdraft is guaranteed
by the mortgage portion of land in the projects of real estate development of the Company and its subsidiaries.
15. LONG-TERM LOANS FROM RELATED PARTY
As at December 31, 2006, the Company had loans from H-International (BVI) Company Limited, an oversea subsidiary,
amounting to USD 22.46 million and Baht 339.42 million (2005 : USD 22.48 million and Baht 350.45 million) which did not
have the maturity date and the interest charge.
��
Annual R
eport 2006 , H
em
ara
j La
nd
an
d D
eve
lop
me
nt P
ub
lic C
om
pa
ny L
imite
d
16. L
ON
G-T
ERM
LO
AN
S FR
OM
REL
ATED
PER
SON
S
Ea
ster
n Se
aboa
rd In
dust
rial E
stat
e (R
ayon
g) C
ompa
ny L
imite
d
A
s at
Dec
emb
er 3
1, lo
ng-t
erm
loan
s fro
m re
late
d p
erso
ns c
onsi
sted
of:
Loan
con
ditio
n
B
alan
ces
C
redi
t lin
e
Inte
rest
pay
men
t (M
illio
n B
aht)
(M
illio
n B
aht)
Cre
dit p
erio
d
P
rinci
pal r
epay
men
t Te
rm
Inte
rest
rate
per
ann
um (%
) 20
06
2005
1.
25
Janu
ary
2003
-
Qua
rter
ly in
stal
lmen
t, B
aht 1
.25
mill
ion
each
. E
nd o
f mon
th
MLR
of
Dec
emb
er 2
008
Kas
ikor
nban
k P
lc.
5.0
0 10
.00
2.
7 Ja
nuar
y 20
03 -
Q
uart
erly
inst
allm
ent,
Bah
t 0.3
5 m
illio
n ea
ch.
End
of m
onth
M
LR o
f
Dec
emb
er 2
008
K
asik
ornb
ank
Plc
.
1.4
0 2.
80
To
tal
32
6.
40
12.8
0
Le
ss
Cur
rent
por
tion
of lo
ng-t
erm
loan
from
rela
ted
per
sons
(6
.40)
(6
.40)
Long
-ter
m lo
an fr
om re
late
d p
erso
ns, n
et
-
6.40
A
sub
sid
iary
com
pan
y ob
tain
ed lo
ans
from
its
rela
ted
per
sons
to c
onst
ruct
min
i pre
-fab
ricat
ed fa
ctor
ies
and
mic
ro p
re-f
abric
ated
fact
orie
s fo
r sa
le a
nd r
ent.
Por
tion
of la
nd a
nd fa
ctor
ies
have
bee
n m
ortg
aged
as
colla
tera
l for
suc
h lo
ans.
��
Ann
ual R
epor
t 200
6 ,
He
ma
raj
La
nd
an
d D
eve
lop
me
nt
Pu
blic
Co
mp
an
y L
imit
ed
17. O
THER
LO
NG
-TER
M L
OA
NS
A
s at
Dec
emb
er 3
1, o
ther
long
-ter
m lo
ans
cons
iste
d o
f:
Loan
con
ditio
n
B
alan
ces
C
redi
t lin
e
Inte
rest
pay
men
t (M
illio
n B
aht)
(M
illio
n B
aht)
Cre
dit p
erio
d
P
rinci
pal r
epay
men
t Te
rm
Inte
rest
rate
per
ann
um (%
) 20
06
2005
Hem
araj
Lan
d an
d D
evel
opm
ent P
ublic
Com
pany
Lim
ited
A.
Loan
from
loca
l com
mer
cial
ban
k co
nsis
ted
of:
A
.1
1,
800
June
200
4 -
R
epay
men
t whe
n m
ortg
age
are
rele
ased
E
nd o
f mon
th
Year
1:
3.85
, 1,
145.
40
391.
60
June
200
8 at
60
% o
f con
dom
iniu
m c
ontr
act v
alue
but
not
Year
2-3
: MLR
-1.7
5,
le
ss th
an B
aht 5
3,00
0 p
er s
qua
re m
eter
.
Year
4: M
LR–1
.50
Th
e d
ebt m
ust b
e fu
lly re
pai
d w
ithin
4 y
ears
si
nce
the
first
dra
wd
own.
To
tal
1,
800
1,1
45.4
0 39
1.60
East
ern
Indu
stria
l Est
ate
Com
pany
Lim
ited
A.
Loan
from
loca
l com
mer
cial
ban
k co
nsis
ted
of:
A
.1
72
0 O
ctob
er 2
003
-
18 m
onth
s g
race
per
iod
E
nd o
f mon
th
Year
1:
4.50
, -
2
5.18
Janu
ary
2009
Q
uart
erly
inst
allm
ent::
Year
2:
4.75
In
200
5: n
ot le
ss th
an B
aht 1
5 m
illio
n ea
ch.
Ye
ar 3
onw
ard
s:
In
200
6: n
ot le
ss th
an B
aht 3
0 m
illio
n ea
ch.
1
year
per
sona
l fixe
d d
epos
it
In
200
7: n
ot le
ss th
an B
aht 4
5 m
illio
n ea
ch.
ra
te+
3.75
In
200
8: n
ot le
ss th
an B
aht 5
0 m
illio
n ea
ch.
To
tal
72
0
-
25
.18
��
Annual R
eport 2006 , H
em
ara
j La
nd
an
d D
eve
lop
me
nt P
ub
lic C
om
pa
ny L
imite
d
Loan
con
ditio
n
B
alan
ces
C
redi
t lin
e
Inte
rest
pay
men
t (M
illio
n B
aht)
(M
illio
n B
aht)
Cre
dit p
erio
d
P
rinci
pal r
epay
men
t Te
rm
Inte
rest
rate
per
ann
um (%
) 20
06
2005
East
ern
Seab
oard
Indu
stria
l Est
ate
(Ray
ong)
Com
pany
Lim
ited
A.
Loan
from
loca
l com
mer
cial
ban
ks c
onsi
sted
of:
A
.1
27
0 M
arch
200
2 -
Min
imum
Bah
t 4 m
illio
n m
onth
ly, c
omm
enci
ng
End
of m
onth
Ye
ar 1
: MLR
-0.5
0,
-
17.6
9
Mar
ch 2
009
fir
st p
aym
ent i
n S
epte
mb
er 2
004.
Year
2 on
war
ds:
MLR
A
.2
32
0 Fe
bru
ary
2003
-
Rep
aym
ent o
n th
e d
ate
of m
ortg
age
rele
ased
, E
nd o
f mon
th
Year
1: M
LR-0
.50,
72
.95
122
.32
Feb
ruar
y 20
07
not l
ess
than
Bah
t 0.8
5 m
illio
n p
er r
ai.
Ye
ar2
onw
ard
s: M
LR
A
.3
30
0 D
ecem
ber
200
3 -
R
epay
men
t on
the
dat
e of
mor
tgag
e re
leas
ed,
End
of m
onth
Ye
ar 1
-3: M
LR-2
.00,
15
1.06
1
37.5
2
Dec
emb
er 2
008
no
t les
s th
an B
aht 0
.28
mill
ion
per
rai
.
Year
4-5
: MLR
-1.0
0
A
.4
32
5 D
ecem
ber
200
4 -
Rep
aym
ent o
n th
e d
ate
of m
ortg
age
rele
ased
, E
nd o
f mon
th
Year
1-2
: MLR
-2.0
0,
7.78
11
3.65
Dec
emb
er 2
008
no
t les
s th
an 5
0% o
f lan
d s
ellin
g p
rice,
Year
3 o
nwar
ds:
b
ut n
ot le
ss th
an B
aht 1
mill
ion
per
rai
MLR
-1.0
0 b
ut n
ot le
ss th
an
12
mon
th fi
xed
dep
osit
rate
+2.
75
A
.5
12
1 M
arch
200
5 -
60 m
onth
s in
stal
lmen
ts, B
aht 2
.02
mill
ion
each
, E
nd o
f mon
th
Year
1-3
: 12
mon
th
85.9
7 5
9.00
Mar
ch 2
011
co
mm
enci
ng fr
om th
e 13
th m
onth
afte
r th
e fir
st
fix
ed d
epos
it +
2.75
,
d
raw
dow
n, a
nd th
e re
mai
ning
will
be
rep
aid
in
Ye
ar 4
onw
ard
s:
th
e la
st p
erio
d. I
n ca
se o
f mor
tgag
e of
land
12 m
onth
fixe
d d
epos
it +
3.75
an
d b
uild
ing
s is
rele
ased
, min
imum
Bah
t 6,0
00
p
er s
qua
re m
eter
will
be
rep
aid
.
A
.6
50
Ju
ly 2
005
- 60
mon
ths
inst
allm
ents
, Bah
t 0.8
4 m
illio
n ea
ch,
End
of m
onth
Ye
ar 1
-2: M
LR-1
.75,
40
.77
33.
00
July
201
1
com
men
cing
from
the
13th
mon
th a
fter
the
first
Year
3-4
: MLR
-1.2
5,
d
raw
dow
n, a
nd th
e re
mai
ning
will
be
rep
aid
Year
5-6
: MLR
-1.0
0
in
the
last
per
iod
.
��
Ann
ual R
epor
t 200
6 ,
He
ma
raj
La
nd
an
d D
eve
lop
me
nt
Pu
blic
Co
mp
an
y L
imit
ed
Loan
con
ditio
n
B
alan
ces
C
redi
t lin
e
Inte
rest
pay
men
t (M
illio
n B
aht)
(M
illio
n B
aht)
Cre
dit p
erio
d
P
rinci
pal r
epay
men
t Te
rm
Inte
rest
rate
per
ann
um (%
) 20
06
2005
A
.7
20
0 A
ugus
t 200
6 -
R
epay
men
t on
the
dat
e of
mor
tgag
e re
leas
ed,
End
of m
onth
Ye
ar 1
-2: M
LR-1
.00,
8
5.78
-
Aug
ust 2
011
not l
ess
than
50%
of l
and
sel
ling
pric
e, b
ut n
ot
Ye
ar 3
-5: M
LR-0
.50
le
ss th
an B
aht 1
.25
mill
ion
per
rai
.
A
.8
86
A
ugus
t 200
6 -
R
epay
men
t on
the
dat
e of
mor
tgag
e re
leas
ed,
End
of m
onth
Ye
ar 1
-2: M
LR-1
.00,
66
.92
-
Aug
ust 2
011
not l
ess
than
50%
of l
and
sel
ling
pric
e, b
ut n
ot
Ye
ar 3
-5: M
LR-0
.50
le
ss th
an B
aht 1
.1 m
illio
n p
er r
ai
A
.9
63
A
pril
200
6 -
60 m
onth
s in
stal
lmen
ts, B
aht 1
.05
mill
ion
each
, E
nd o
f mon
th
Year
1-2
: MLR
-1.5
0,
57.
04
-
Ap
ril 2
012
co
mm
enci
ng fr
om th
e 13
th m
onth
afte
r th
e
Ye
ar 3
-4: M
LR-1
.00,
fir
st d
raw
dow
n, a
nd th
e re
mai
ning
will
be
Year
5-6
: M
LR-0
.75
re
pai
d in
the
last
per
iod
. In
case
of m
ortg
age
re
leas
ed, l
and
not
less
than
Bah
t 0.2
5 m
illio
n
p
er r
ai, c
onst
ruct
ion
not l
ess
than
Bah
t 6,0
00
p
er s
qua
re m
eter
.
A
.10
12
0 Ju
ne 2
006
- Q
uart
erly
inst
allm
ents
, Bah
t 7.5
mill
ion
each
, E
nd o
f mon
th
Year
1-2
: MLR
-1.0
0,
74.8
1
-
June
201
1
com
men
cing
from
gra
ce p
erio
d. I
n ca
se o
f
Year
3-5
: MLR
-0.5
0
m
ortg
age
rele
ased
, not
less
than
50%
of l
and
se
lling
pric
e, b
ut n
ot le
ss th
an B
aht 0
.24
m
illio
n p
er r
ai.
A
.11
80
D
ecem
ber
200
6 -
Q
uart
erly
inst
allm
ents
, Bah
t 5 m
illio
n ea
ch,
End
of m
onth
Ye
ar 1
: MLR
-1.0
0,
80.
00
-
Dec
emb
er 2
011
com
men
cing
from
the
15th
mon
th a
fter
Year
2: M
LR-0
.75,
th
e fir
st d
raw
dow
n.
Ye
ar 3
: MLR
-0.5
0,
Ye
ar 4
-5: M
LR
��
Annual R
eport 2006 , H
em
ara
j La
nd
an
d D
eve
lop
me
nt P
ub
lic C
om
pa
ny L
imite
d
Loan
con
ditio
n
B
alan
ces
C
redi
t lin
e
Inte
rest
pay
men
t (M
illio
n B
aht)
(M
illio
n B
aht)
Cre
dit p
erio
d
P
rinci
pal r
epay
men
t Te
rm
Inte
rest
rate
per
ann
um (%
) 20
06
2005
B
. Lo
ans
from
oth
er p
erso
ns c
onsi
sted
of:
B
.1
25
Ja
nuar
y 20
03 –
Q
uart
erly
inst
allm
ents
, Bah
t 1.2
5 m
illio
n ea
ch.
End
of m
onth
M
LR o
f
Ja
nuar
y 20
08
Kas
ikor
nban
k P
lc.
5
.00
10.0
0
B.2
63
Sep
tem
ber
200
5 -
Q
uart
erly
inst
allm
ents
, Bah
t 5 m
illio
n ea
ch,
Dec
emb
er 2
007
co
mm
enci
ng fr
om J
anua
ry 2
006.
E
nd o
f mon
th
Ave
rag
e M
LR-0
.50
of
43.0
0 63
.00
K
asik
ornb
ank
Plc
.,
Ban
gko
k B
ank
Plc
. and
Kru
ngth
ai B
ank
Plc
.
B
.3
30
N
ovem
ber
200
6 -
One
tim
e p
aym
ent a
t the
mat
urity
dat
e
End
of m
onth
M
LR-1
.00
of
30.0
0 30
.00
May
200
7 of
the
pro
mis
sory
not
e.
K
asik
ornb
ank
Plc
.
B.4
10
Aug
ust 2
002
-
Mon
thly
inst
allm
ents
, Bah
t 0.2
1 m
illio
n ea
ch,
End
of m
onth
M
LR+
1.00
of
1.68
4.
18
A
ugus
t 200
7
tota
lly 4
8 m
onth
s co
mm
enci
ng fr
om
K
asik
ornb
ank
Plc
.
gra
ce p
erio
d.
B
.5
14
N
ovem
ber
200
6 -
One
tim
e p
aym
ent a
t the
mat
urity
dat
e of
E
nd o
f mon
th
MLR
-1.0
0 of
14
.00
14.0
0
M
ay 2
007
th
e p
rom
isso
ry n
ote.
Kas
ikor
nban
k P
lc.
B
.6
10
A
ugus
t 200
2 -
M
onth
ly in
stal
lmen
ts, B
aht 0
.21
mill
ion
each
, E
nd o
f mon
th
MLR
+1.
00 o
f 1.
68
4.17
Aug
ust 2
007
to
tally
48
mon
ths
com
men
cing
from
Kas
ikor
nban
k P
lc.
g
race
per
iod
.
B.7
6 N
ovem
ber
200
6 -
One
tim
e p
aym
ent a
t the
mat
urity
dat
e of
E
nd o
f mon
th
MLR
-1.0
0 of
6.
00
6.00
May
200
7
the
pro
mis
sory
not
e.
K
asik
ornb
ank
Plc
.
Tota
l
2,09
3
82
4.44
61
4.53
Hem
araj
Eas
tern
Sea
boar
d In
dust
rial E
stat
e Co
mpa
ny L
imite
d
A.
Loan
from
loca
l com
mer
cial
ban
k co
nsis
ted
of:
A.1
800
Dec
emb
er 2
005
-
Rep
aym
ent o
n th
e la
nd ti
tle d
eed
tran
sfer
dat
e,
End
of m
onth
M
LR-1
.00
426.
27
190.
00
D
ecem
ber
201
0
not l
ess
than
50%
of s
ale
cont
ract
pric
e,
b
ut n
ot le
ss th
an B
aht 1
mill
ion
per
rai
.B
. Lo
ans
from
oth
er c
ompa
ny c
onsi
sted
of:
B.1
800
Nov
emb
er 2
004
- R
epay
men
t on
the
land
title
dee
d tr
ansf
er d
ate
End
of m
onth
M
LR+
1.00
44
0.93
45
1.63
Nov
emb
er 2
011
at
Bah
t 0.2
0 m
illio
n p
er r
ai o
r 10
inst
allm
ents
ev
ery
6 m
onth
s, B
aht 8
0 m
illio
n ea
ch,
co
mm
enci
ng fr
om M
ay 2
007.
To
tal
1,
600
867.
20
641.
63
Gra
nd to
tal
6,
213
2,83
7.04
1,
672.
94
Less
C
urre
nt p
ortio
n of
oth
er lo
ng-t
erm
loan
s
(144
.02)
(1
20.0
3)
O
ther
long
-ter
m lo
ans,
net
2,
693.
02
1,55
2.91
Suc
h ot
her
long
-ter
m lo
ans
are
gua
rant
eed
by
the
mor
tgag
e of
mos
t of l
and
in th
e re
al e
stat
e d
evel
opm
ent p
roje
cts
of th
e C
omp
any
and
its
sub
sid
iarie
s.
��
Ann
ual R
epor
t 200
6 ,
He
ma
raj
La
nd
an
d D
eve
lop
me
nt
Pu
blic
Co
mp
an
y L
imit
ed
18. PROVISION, AND GAIN FROM DEBT COMPROMISE As at December 31, 2005, the Company has recorded the maximum loss reserve in the amount of Baht 242.52 million, which
arose from the lawsuit against Thai Asset Management Corporation (TAMC). This lawsuit was the result from the Company
entering into security pledged agreement for a related company before the Company being listed in Securities Exchange
of Thailand in 1992.
In the first quarter of 2006, the Company has agreed to a debt compromise in order to finalise such lawsuit. The Company
will repay the principal amount of Baht 100 million and interest at MLR rate (the rate as of the date TAMC approved the
debt compromise at 6.8% per annum). The approximately aggregated amount of Baht 156.10 million will be divided into
2 installments: the first installment of Baht 15 million has been paid at the agreement date; the second one of Baht 141.10
million was settled on September 4, 2006. This resulted in a gain from debt compromise for the Company in the amount
of Baht 86.43 million presented under the extraordinary item in the statements of income. The Company and Thai Asset
Management Corporation is in the process of withdrawing the lawsuit from the court and in the process of withdrawing the
pledged assets.
19. SHARE CAPITAL The 2005 Annual General Meeting of Shareholders of Hemaraj Land and Development Public Company Limited on April 29,
2005 had resolved as follows:
19.1 A reduction of the registered capital by canceling 2,957,820,750 unissued shares at the par value of Baht 1 amounting
to Baht 2,957,820,750 reserved for private placement (2,827,820,750 shares) and for the exercise of convertible
debentures (130,000,000 shares) from the previous registered capital of Baht 13,000,000,000 to Baht 10,042,179,250,
equal to 10,042,179,250 ordinary shares at the par value of Baht 1, that the Company had registered the decrease of
its authorized share capital with the Ministry of Commerce on May 6, 2005.
19.2 An increase of the registered capital of the Company in another amount of Baht 4,957,820,750 by an issue of
4,957,820,750 new ordinary shares at the par value of Baht 1 each from the previous registered capital of Baht
10,042,179,250 to the new registered capital of Baht 15,000,000,000, equal to 15,000,000,000 ordinary shares at
the par value of Baht 1, that the Company registered the increase of its authorized share capital with the Ministry of
Commerce on May 9, 2005 in accordance with the following allotments:
- 750,000,000 shares will be allotted to Cementhai Property (2001) Public Company Limited paid for the investment
in SIL Industrial Land Co.,Ltd at the offering price per share, calculating from weighted average price of the
Company’s shares traded on the SET for a consecutive period of 30 trading days before the offering date, subject
to a cap of 10% higher or lower of the “market price”.
- 4,207,820,750 shares will be allocated by way of private placement in accordance with the SEC notification no.Kor
Jor. 12/2543 regarding the application and permission for offer of new shares.
20. WARRANTS According to the resolutions of the Annual General Meeting of Shareholders dated April 30, 1999, the Company issued
141,531,150 warrants to the existing shareholders and specific investors, at the unit price of Baht 0.1. Total cash received
from offer of warrants was in the approximate amount of Baht 14.15 million. The Company registered its warrants with the
Stock Exchange of Thailand (“SET”) as listed securities and the warrants were approved by the SET to be listed securities
from December 15, 1999 onwards.
The Extraordinary Ordinary Meeting of Shareholders No. 1/2001 of the Company held on December 28, 2001 approved the
extension of exercised period to 10 years from the issuing date, which will be ended within September 30, 2009 and for the
adjustment of exercised price to Baht 3 per share.
��
Annual R
eport 2006 , H
em
ara
j La
nd
an
d D
eve
lop
me
nt P
ub
lic C
om
pa
ny L
imite
d
Subsequently, the Board of Directors’ Meeting No. 1/2002 held on February 20, 2002 approved the adjustment to the
numbers of the existing warrants with the additional ratio of 2.33333 units per each 1 existing warrant, in accordance with
the announcement of the Office of the Securities and Exchange Commission regarding guidelines on the adjustment to the
exercise price/exercise ratio of warrants. The warrants after the adjustment were 471,686,471 units with the exercise ratio
of 1 ordinary share per each warrant and exercise price of Baht 3 per share.
The Board of Directors’ Meeting No. 7/2003 held on September 15, 2003 had passed the resolution in accordance with
the provision for the adjustments of warrant exercise ratio as stipulated by the Prospectus that would be changed from 1:1
to be one warrant exercisable to 1.05918 ordinary shares. The Company did not adjust the exercise price, however the
Company brought forward the adjustment to be included in following adjustments of rights. The above adjustments would
take immediate effect on the first date of the ordinary shares offering.
Accordingly, the Extra-Ordinary Meeting of Shareholders held on October 16, 2003 had passed the resolution of the
adjustments of the Company’s par value, resulting in the exercise ratio changing from 1 : 1.05918 to be one warrant
exercisable to 10.5918 ordinary shares at the exercise price of Baht 0.283 per share. According to the SEC’s Notification
regarding guideline relating to adjustments of the exercise price/ratio of warrants, it allows the Company to adjust the number
of warrants rather than to adjust the exercise ratio. Therefore, the Company chose to adjust the number of warrants which
resulting that the number of warrants increased from 427,084,638 to 4,527,831,794. Consequently, the warrants had the
same exercise ratio at one warrant exercisable to purchase one ordinary share at Baht 0.283 per share.
As at December 31, 2006 and 2005 there were outstanding 672,461,433 and 3,618,639,504 units of unexercised warrants,
respectively.
21. STATUTORY RESERVE AND DIVIDEND Statutory Reserve
Under the Public Limited Company Act B.E. 2535, the Company is required to set aside as a statutory reserve at least 5%
of its net profit after deducting accumulated deficit brought forward (if any) until the reserve reaches 10% of the registered
share capital. The statutory reserve is not available for dividend distributions.
As at December 31, 2006 and 2005, The Company had allocated profit amount of Baht 59.54 million and Baht 31.84 million,
respectively as a statutory reserve.
Dividend
Dividend paid Dividend
Dividend Approved by (Million Baht) per share Payment date
2006
Dividend for the profit of year 2005 The 2006 Annual General Meeting
of Shareholders on April 27, 2006 240.99 0.035 May 16, 2006
Interim dividend for year 2006 The Board of Directors’ Meeting
held on September 29, 2006 271.01 0.030 October 27, 2006
Total dividend paid during year 2006 512.00 0.065
2005
Dividend for the profit of year 2004 The 2005 Annual General Meeting
of Shareholders on April 29, 2005 211.51 0.035 May 12, 2005
Interim dividend for year 2005 The Board of Directors’ Meeting
held on November 14, 2005 121.68 0.020 December 13, 2005
Total dividend paid during year 2005 333.19 0.055
��
Ann
ual R
epor
t 200
6 ,
He
ma
raj
La
nd
an
d D
eve
lop
me
nt
Pu
blic
Co
mp
an
y L
imit
ed
22. INCOME FROM INCREASE OF SALABLE AREA In the year 2006, the Company has recorded income since IEAT approved to increase the salable area. The amoount was
realized as revenue and cost in the past, in the amount of Baht 55.60 million. As the result of this change, the over cost
realization in previous accounting period has been adjusted and presented as income in the statements of income.
23. DIRECTORS’ REMUNERATION AND PERSONNEL EXPENSES For the years ended December 31, directors’ remuneration consisting of meeting fee and annual compensation were as
follows:
MILLION BAHT
2006 2005
Hemaraj Land and Development Public Company Limited 17.55 16.27
Eastern Seaboard Industrial Estate (Rayong) Company Limited 8.96 8.76
Total 26.51 25.03
For the years ended December 31, personnel expenses included in selling and administrative expenses and cost of services
in the statements of income were as follows:
MILLION BAHT
2006 2005
Consolidated statements of income 204.78 175.05
The Company’s statements of income 81.92 77.92
24. PROVIDENT FUND The Company and its 4 subsidiaries which are Eastern Industrial Estate Company Limited, Eastern Seaboard Industrial
Estate (Rayong) Company Limited, Eastern Pipeline Services Company Limited and H - Construction Management and
Engineering Company Limited, jointly established the provident fund under the Provident Fund Act B.E. 2530, named
“Hemaraj Provident Fund”, to provide membership for their employees. According to regulations of the fund, member and
the Company contributes 4% - 10% of employees’ monthly salaries, depending on the working period. Members are entitled
to their whole contributions plus net benefit thereon, and the Company’s contributions plus benefits thereon at the rates,
depending on their working period. The provident fund is managed by Tisco Asset Management Company Limited. During
2006 and 2005, the Company and the above subsidiaries had contributed to provident fund in the total amount of Baht 6.59
million and 5.59 million (The Company Only: Baht 2.96 million and Baht 2.68 million), respectively.
25. CORPORATE INCOME TAX The Company and its subsidiaries recorded corporate income tax according to the accounting purposes on the basis of
a percentage of completion basis for recognition of real estate sales. For the year then ended December 31, 2006, the
recorded corporate income tax was higher than the corporate income tax in compliance with the Revenue Code which is
calculated on the basis of installments due as per the agreements of the condominium project by Baht 138.23 Million.
Corporate income tax as presented in the statements of income is, therefore, complied with matching concept.
��
Annual R
eport 2006 , H
em
ara
j La
nd
an
d D
eve
lop
me
nt P
ub
lic C
om
pa
ny L
imite
d
26. EARNINGS PER SHARE COMPUTATION Earnings per share computation in the consolidated and the Company’s financial statements for the years ended December
31, consisted of:
Weighted average Net earnings number of ordinary shares Earnings per share
2006 2005 2006 2005 2006 2005 Thousand Thousand Thousand Thousand Baht Baht Baht Baht Shares Shares
Basic earnings per share
Profit from ordinary activities 1,104,341 636,834 0.15 0.11
Extraordinary item, net 86,425 - 0.01 -
Net profit 1,190,766 636,834 7,277,340 6,015,423 0.16 0.11
The effect of potential ordinary shares
Warrants
Number of shares that would have
been issued without consideration
on the average fair value of
ordinary shares in excess of
the exercise price 482,155 2,505,514
Diluted earnings per share
Net profit attributable to ordinary
shareholders in case of convertible
bonds being converted and all
warrants being exercised before
extra ordinary item 1,104,341 636,834 0.14 0.07
Extraordinary item, net 86,425 - 0.01 -
Net profit 1,190,766 636,834 7,759,495 8,520,937 0.15 0.07
�0
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ual R
epor
t 200
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Pu
blic
Co
mp
an
y L
imit
ed
27.
BU
SIN
ESS
SEG
MEN
T IN
FOR
MAT
ION
A
s of
Dec
emb
er 3
1, b
usin
ess
seg
men
t inf
orm
atio
n in
the
cons
olid
ated
bal
ance
she
ets
clas
sifie
d b
y d
omes
tic a
nd o
vers
eas
bus
ines
s w
as a
s fo
llow
s:
M
ILLI
ON
BA
HT
20
06
20
05
Dom
estic
O
vers
eas
Dom
estic
O
vers
eas
Rea
l Est
ate
Oth
ers
Hol
ding
Com
pany
To
tal
Rea
l Est
ate
Oth
ers
Hol
ding
Com
pany
To
tal
Cos
t of r
eal e
stat
e d
evel
opm
ents
, net
6,
119.
91
- -
6,11
9.91
4,
947.
57
- -
4,94
7.57
Leas
ehol
d la
nd a
nd la
nd h
eld
for
co
mm
erci
al p
urp
oses
, net
32
5.72
-
- 32
5.72
28
1.06
-
- 28
1.06
Ass
ets
for
rent
, net
848.
39
106.
25
- 95
4.64
82
7.41
10
1.20
-
928.
61
Pro
per
ty, p
lant
and
eq
uip
men
t, ne
t 32
6.19
98
.65
- 42
4.84
30
2.85
0.
73
- 30
3.58
Oth
er a
sset
s
3,
581.
44
30.6
4 15
.99
3,62
8.07
2,
467.
43
9.38
22
.39
2,49
9.20
Tota
l Ass
ets
11,2
01.6
5 23
5.54
15
.99
11,4
53.1
8 8,
826.
32
111.
31
22.3
9 8,
960.
02
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Th
e op
erat
ion
info
rmat
ion
of th
e co
nsol
idat
ed s
tate
men
ts o
f inc
ome,
for
the
year
s en
ded
Dec
emb
er 3
1, c
lass
ified
by
dom
estic
and
ove
rsea
s b
usin
ess
wer
e as
follo
ws:
M
ILLI
ON
BA
HT
20
06
20
05
Dom
estic
O
vers
eas
Dom
estic
O
vers
eas
Rea
l Est
ate
Oth
ers
Hol
ding
Com
pany
To
tal
Rea
l Est
ate
Oth
ers
Hol
ding
Com
pany
To
tal
Sal
es o
f la
nd
990.
41
-
-
99
0.41
1,
116.
93
- -
1,11
6.93
Sal
es o
f pre
-fab
ricat
ed fa
ctor
ies
17
8.32
-
-
178.
32
201.
54
- -
201.
54
Sal
es o
f con
dom
iniu
ms
1,71
9.71
-
-
1,
719.
71
907.
29
- -
907.
29
Ser
vice
inco
me
803.
65
50.5
4 -
854.
19
680.
79
29.6
6 -
710.
45
Inco
me
from
incr
ease
of s
alab
le a
rea
5
5.60
-
-
55
.60
−
- -
−
Tota
l S
ales
and
Ser
vice
s in
com
e
3,
747.
69
50.5
4 -
3,
798.
23
2,90
6.55
29
.66
−
2,93
6.21
Pro
fit (
loss
) fro
m o
per
atio
ns
1,21
0.02
4
.10
(15.
65)
1,19
8.47
75
0.12
(8
.02)
(1
6.20
) 72
5.90
Oth
er in
com
e
20
0.58
1
.68
0
.46
202.
72
48.1
6 0.
74
0.39
49
.29
Gai
n on
sal
es o
f inv
estm
ent
9.23
-
-
9
.23
23.0
1 -
- 23
.01
Gai
n (lo
ss)
on e
xcha
nge
rate
(0.
53)
-
-
(0
.53)
0.
48
- -
0.48
Ad
just
men
t of l
oss
on d
eclin
e in
val
ue o
f
re
al e
stat
e d
evel
opm
ent c
ost
4
4.65
-
-
44
.65
- -
- -
Sha
re o
f pro
fit fr
om in
vest
men
ts fo
r u
sing
the
equi
ty m
etho
d -
ass
ocia
ted
com
pan
ies
2
4.32
-
-
24
.32
0.96
-
- 0.
96
Oth
er e
xpen
ses
-
estim
ated
loss
on
pos
sib
le lo
ss fr
om la
wsu
it
- -
-
-
(18.
00)
- -
(18.
00)
-
loss
on
inve
stm
ent r
eval
uatio
n
- -
-
-
(0.7
2)
- -
(0.7
2)
Inte
rest
exp
ense
s
(39
.87)
(0.
01)
-
(3
9.88
) (2
7.28
) (0
.02)
-
(27.
30)
Inco
me
tax
exp
ense
s
(275
.29)
-
-
(27
5.29
) (3
5.53
) -
-
(35.
53)
Pro
fit (
loss
) af
ter
tax
1,
173.
11
5.
77
(15.
19)
1,16
3.69
74
1.20
(7
.30)
(1
5.81
) 71
8.09
Net
pro
fit o
f min
ority
inte
rest
(59
.35)
(81.
26)
Ext
raor
din
ary
item
- G
ain
from
deb
t com
pro
mis
e
86.4
3
-
Net
pro
fit
1,
190.
77
63
6.83
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28. PLEDGED ASSETS As of December 31, 2006, pledged assets were as follows:
Hemaraj Land and Development Public Company Limited
1. The partial land and attachments have been mortgaged as collateral for loans from local commercial banks and financial
institutions and is in the process of withdrawing the pledged assets.
2. 15 million ordinary shares of Sriracha Harbour Public Company Limited, a related company, have been pledged in the
court and is in the process of withdrawing the pledged assets.
3. The ordinary shares of Hemaraj Eastern Seaboard Industrial Estate Company Limited, a subsidiary company, have been
pledged with lenders secured for loans obtained by that subsidiary.
4. 14.25 million ordinary shares of Glow IPP Company Limited have been pledged with the lender secured for loan obtained
by that company.
Eastern Seaboard Industrial Estate (Rayong) Company Limited
1. Time deposit of Baht 0.05 million has been pledged as security for public utility services.
2. The majority of the Company’s land has been mortgaged as collateral for overdrafts and loans from one commercial
bank.
3. Partial land, mini and micro pre-fabricated factories of the company have been mortgaged as collateral for loans from
related persons.
Hemaraj Eastern Seaboard Industrial Estate Company Limited
1. The Company’s partial land title deeds have been pledged with lenders for loan security.
2. The Company’s partial land has been mortgaged as collateral for long-term loans from local commercial banks.
29. COMMITMENTS UNDER AGREEMENTS As of December 31, 2006, commitments under agreements were as follows:
1. The Company and its subsidiaries have participated in the establishment industrial estate with the Industrial Estate
Authority of Thailand (“IEAT”) as the joint operation agreements as follows:
1) Hemaraj Chonburi Industrial Estate in Phase 1 and Phase 2 according to the joint operation agreements dated July
5 and December 29, 1989 respectively. On October 31, 2001, the Company entered into the amendment to such
joint operation agreements with IEAT. On March 29, 2005, the Company combined such agreement into one joint
operation agreement.
2) Hemaraj Eastern Industrial Estate (Map Ta Phut) according to the joint operation agreement dated December 27,
1989. On October 31, 2001, the subsidiary entered into the amendment to such joint operation agreements with
IEAT. On March 29, 2005, the Subsidiary combined such agreement into one joint operation agreement.
3) Eastern Seaboard Industrial Estate (Rayong) according to the joint operation agreement No. 1/2539 and 1/2540.
4) Hemraj Eastern Seaboard Industrial Estate according to the joint operation agreement No. 1/2542 (TS 21).
The major conditions are summarized as follows:
1) The Company shall provide utilities systems and facilities to the entrepreneurs in the industrial estate with payment
of expenses on its participation in the procedures to the IEAT.
2) The Company shall not transfer assets, component part and equipment as well as utilities systems and facilities to
the IEAT.
3) The Company shall provide a fund for the maintenance and construction of utilities systems and facilities in the
industrial estate (“Sinking Fund”).
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Hemaraj Land and Development Public Company Limited
1. The Company acquired 5% investment in the amount of Baht 142.5 million in Glow IPP Company Limited. and has to
maintain the 5% investment ratio to comply with the conditions with Electricity Generating Authority of Thailand.
2. The Company has commitment under construction and infrastructure contracts for the Company’s condominium project,
with the remaining commitment balance amounting to Baht 565.28 million.
3. The Company has commitment under construction contracts to construct mini pre-fabricated with the remaining
commitment balance amounting to Baht 10.57 million.
4. The Company has commitment from entering a purchase and sale contract in a project in amount of Baht 328.30 million.
The Company has already paid Baht 32.83 million deposits.
Eastern Industrial Estate Company Limited
1. The Company has commitment under construction contracts to construct utilities system of the Company’s project, with
the remaining commitment balance amounting to Baht 0.66 million.
Eastern Seaboard Industrial Estate (Rayong) Company Limited
1. The Company has obligations, under a joint-investment agreement with Hemaraj Land and Development Public Company
Limited and another company, that the company has to pay commission on sales of land and management fee to Hemaraj
Land and Development Public Company Limited based on revenues from sales of land, public utility service providing
and lease of factories.
2. The Company has commitment under construction contracts to construct mini pre-fabricated and micro pre-fabricated
factories, with the remaining commitment balance amounting to Baht 35.19 million.
Hemaraj Eastern Seaboard Industrial Estate Company Limited
1. The Company has commitment under construction contracts to construct utilities system of the Company’s projects,
with the remaining commitment balance amounting to Baht 252.52 million.
Hemaraj Water Company Limited
1. The Company has commitment under construction contracts to construct utilities system of the Company’s projects,
with the remaining commitment balance amounting to Baht 0.09 million
30. COMMITMENTS AND CONTINGENT LIABILITIES As of December 31, 2006, commitments and contingent liabilities consisted of:
1. The Company and its subsidiaries have entered into land sale and purchase contracts, which the contract term requires
the Company and its subsidiaries to contingently liable to repay deposits and installments in the event that buyers are
unable to obtain satisfactory approvals from the Board of Investment and/or the IEAT to set up their operations.
2. The Company has obligation regarding guarantee of the loan agreement of a subsidiary in the total credit line of Baht
800 million.
3. The Company and its subsidiaries have obligations regarding guarantee of the hire purchase agreements of its related
companies in the total credit line of Baht 14.31 million. (The Company Only: Baht 2.61 million)
4. The Company and its subsidiaries have obligations under condition of the letters of guarantee issued by the banks for
their performance under the joint operation agreements with the Industrial Estate Authority of Thailand, their compliance
with the agreement made with the Customs House in the free tax area, the construction of utilities under land sale contract,
the construction of utility and power substation, and their performance under the raw water purchase agreement and
others in the total amount of Baht 131.82 million. (The Company Only: Baht 19.09 million).
��
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31. PROMOTIONAL PRIVILEGES The Company and its 3 subsidiary companies have been granted promotional certificates under the Investment Promotion
Act, B.E. 2520 as follows:
Major Privileges
Date obtained for Area/units obtained Exemption from Reduction of 50% promotional for promotional corporate income of corporate income privilege privilege tax (***) tax (****)
Hemaraj Land and Development Public Company Limited A. Industrial Estate Business
A.1 December 29, 1988 1,500 Rai 7 years * 5 years *
A.2 February 15, 1990 2,000 Rai 7 years * None
A.3 July 25, 2001 1,282 Rai 7 years ** None
B. Industrial Factory Development Business
B.1 June 21, 2000 11 Units 7 years None
Eastern Industrial Estate Company Limited
A. Industrial Estate Business
A.1 May 8, 1989 626 Rai 5 years * 5 years *
September 23, 1992 1,850 Rai 5 years * 5 years *
(Extension)
A.2 November 27, 2002 565 Rai 8 years 5 years
Eastern Seaboard Industrial Estate (Rayong) Company Limited
A. Industrial Estate Business
A.1 June 21, 1995 2,063 Rai 8 years 5 years
August 9, 1996 1,532 Rai 8 years 5 years
(Extension)
A.2 October 27, 1997 2,466 Rai 8 years 5 years
July 31, 2000 325 Rai 8 years 5 years
(Extension)
A.3 July 25, 2001 716 Rai 7 years None
A.4 December 8, 2004 680 Rai 8 years 5 years
B. Industrial Factory Development Business
B.1 January 19, 2000 22 Units 8 years 5 years
B.2 June 21, 2000 13 Units 8 years 5 years
B.3 November 29, 2000 12 Units 8 years 5 years
B.4 January 16, 2002 51 Units 8 years 5 years
B.5 March 27, 2002 22 Units 8 years 5 years
B.6 September 7, 2006 6 Units 8 years 5 years
Hemaraj Eastern Seaboard Industrial Estate Company Limited
A. Industrial Estate Business
A.1 May 22, 1997 1,407 Rai 8 years 5 years
A.2 May 22, 1997 1,375 Rai 8 years 5 years
A.3 May 22, 1997 1,485 Rai 8 years 5 years
A.4 September 26, 1996 1,332 Rai 8 years 5 years
* Major Privilege was expired.
** Major Privilege still not started because the Company has not earned the revenues yet.
*** Starting from the first revenue recognised date.
**** Starting from the exemption from corporate income tax is expired.
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For the years ended December 31, domestic revenues were classified into the promoted and the non-promoted businesses
as follows:
THOUSAND BAHT
BOI NON-BOI TOTAL
2006 2005 2006 2005 2006 2005
Consolidated
Revenue from sales
Lands 811,384.16 1,006,246.26 179,024.43 110,687.01 990,408.59 1,116,933.27
Industrial factories 134,992.90 131,637.34 43,325.51 69,898.72 178,318.41 201,536.06
Condominiums - - 1,719,705.23 907,290.73 1,719,705.23 907,290.73
Service income 334,080.62 285,743.99 520,114.95 424,702.11 854,195.57 710,446.10
Total 1,280,457.68 1,423,627.59 2,462,170.12 1,512,578.57 3,742,627.80 2,936,206.16
The Company Only
Revenue from sales
Lands - - 71,256.48 53,375.34 71,256.48 53,375.34
Industrial factories 11,718.88 - - 27,630.00 11,718.88 27,630.00
Condominiums - - 1,719,705.23 907,290.73 1,719,705.23 907,290.73
Service income 1,024.45 2,145.49 139,553.60 146,823.18 140,578.05 148,968.67
Total 12,743.33 2,145.49 1,930,515.31 1,135,119.25 1,943,258.64 1,137,264.74
32. FINANCIAL INSTRUMENTS Risk Management Policy
Exposure to interest rate and currency risk arises in normal course of the Hemaraj Group’s business. These are subject to
the risk of market rates changing subsequent to the transaction date.
The Hemaraj Group’s policy on interest rate risk and currency risk hedging is as follows:
A. Maintaining proportions of domestic and foreign borrowings;
B. Borrowing loans at fixed and floating interest rates;
C. Pledging assets as collateral against loans.
The Hemaraj Group has no policy to speculate on or engage in the trading of any off-balance-sheet derivative financial
statements.
Fair Value of Financial Instruments Except as disclosed in Note 3 to the financial statements, fair value of significant financial instruments consists of:
A. Fair value of cash and cash equivalents, deposits for investment, account receivables, bank overdrafts and loans
from financial institutions, account payables and accrued expenses are approximately equal to the carrying amount
because of short maturity of these instruments.
B. Fair value of short-term investments in available-for-sale securities is equal to the market value.
C. Fair value of short-term loans and advances to related parties, loans to related parties, other loans, short-term loans
and advances from related parties, amount due to and loans from related parties could not be determined since
the repayment period is not specified.
33. APPROVAL OF FINANCIAL STATEMENTS These financial statements have been agreed on February 14, 2007 by the authorized person designated by the Company
for proposing to the Company’s Board of Directors for approval.
��
Certified Public Accounting Fee
1. Audit Fee
The company and its subsidiaries have paid for the audit fee in the amount of baht 2,910,000 to
A.M.T. & Associates for the fiscal year 2006
2. Non-Audit Fee
The company and its subsidiaries have paid for other accounting services, BOI report for example,
in the amount of baht 50,000 to A.M.T. & Associates for the fiscal year 2006.
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* The Board of Directors has appointed the Nominating Committee and Good Corporate Governance Committee on February 27, 2007.
** From 1/1/2007
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Shareholders
ExecutiveVice President
Shareholding & Organization Structure
Top Ten of Hemaraj Land and Development’s Shareholders as at 16/10/06
No. Major Shareholders No. of Shares % of Total Issued Share
1 Miss Phenpunnee Horrungruang 959,669,970 10.62
2 THAI NVDR Co., Ltd. 475,180,800 5.26
3 CREDIT AGRICOLE (SUISSE) SA, SINGAPORE BRANCH 442,406,389 4.90
4 QUAM SECURITIES NOMINEE (SINGAPORE) PTE LTD. 380,000,000 4.21
5 Mr. Sumeth Horrungruang 314,823,120 3.49
6 Miss Netranapit Phituckvanichudom 269,799,910 2.99
7 SOMER (U.K.) LTD. 205,500,000 2.27
8 Miss Charuwan Chaisupawan 203,815,397 2.26
9 Miss Kanokthip Nuamcharoen 190,920,930 2.11
10 Mr. Vikit Horrungruang 181,243,400 2.01
CustomerDevelopment
I.E.Operations
I.E.Development
InformationSys &
Services
CorporatePlanning &
InvestorRelations
Corporate Marketing Finance
WaterProject
Planning**
ResidentialProject
Planning
ResidentialCustomer
DevelopmentAccount
SeniorVice President
Boardof Directors
ExecutiveCommittee
President& CEO
Internal Audit
AuditCommittee
Legal
NominatingCommittee*
Good CorporateGovernance Committee*
��
General Information
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Paid Revenue (Mil. Baht) Name Address Nature of Capital % of Business (Mil.Baht) Investment 2006 % 2005 % 2004 %
Hemaraj Land And Development 18th Floor, UM Tower, Industrial Estate 9,037 2,203.93 54% 1,197.06 40% 1,582.71 42%
Public Company Limited 9 Ramkhamhaeng Rd., Suanluang, Developer
Registration No. Bormorjor 0107536000676 Bangkok 10250, Thailand
Share Capital 15,000,000,000 shares Tel. (662) 719-9555
Issued 9,036,927,495 shares Fax (662) 719-9546-7
www.hemaraj.com
E-mail: [email protected]
Subsidiary Companies
Hemaraj International Limited (1) Scotia Centre, 4th Floor Holding Company 0.03 100
P.O.Box 2804, George Town,
Grand Cayman, Cayman Islands
H-International (BVI) Company Limited (2) Romasco Place, Wickhams Cay 1, Holding Company 0.08 100 0.46 0% 0.39 0% 0.07 0%
P.O. Box 3140, Road Town, Tortola
British Virgin Islands.
Eastern Industrial Estate Company Limited 18th Floor, UM Tower, Industrial Estate 400 99.99 794.75 20% 709.30 24% 1,135.27 30%
9 Ramkhamhaeng Road, Suanluang, Developer
Bangkok 10250, Thailand
Eastern Pipeline Services Company Limited 18th Floor, UM Tower, Pipe Rack Rental 3.75 99.99 46.21 1% 30.00 1% 23.04 1%
(3) 9 Ramkhamhaeng Road, Suanluang,
Bangkok 10250, Thailand
Eastern Seaboard Industrial Estate 18th Floor, UM Tower, Industrial Estate 358 60 993.51 24% 1,066.38 35% 989.78 27%
(Rayong) Company Limited 9 Ramkhamhaeng Road, Suanluang, Developer
Bangkok 10250, Thailand
H-Construction Management 18th Floor, UM Tower, Supervision Service 17 99.99 6.00 0% 0.40 0% 0.47 0%
and Engineering Company Limited 9 Ramkhamhaeng Road, Suanluang,
Bangkok 10250, Thailand
The Park Residence Company Limited 18th Floor, UM Tower, Property Development 0.25 99.99 1.65 0%
9 Ramkhamhaeng Road, Suanluang, and Marketing
Bangkok 10250, Thailand and Service
Management
Hemaraj Eastern Seaboard Industrial 18th Floor, UM Tower, Industrial Estate 595 99.99 8.32 0% 5.45 0% 0.91 0%
Estate Company Limited 9 Ramkhamhaeng Road, Suanluang, Developer
Bangkok 10250, Thailand
Hemaraj Water Company Limited 18th Floor, UM Tower, Industrial Water 25 99.99
9 Ramkhamhaeng Road, Suanluang, Distributor
Bangkok 10250, Thailand
SME Factory Company Limited 18th Floor, UM Tower, Factory Sale 0.25 99.99
9 Ramkhamhaeng Road, Suanluang, and Rental
Bangkok 10250, Thailand
Associated Companies
Elyo-H Facilities Management Limited 107/1 Moo 4, Eastern Seaboard Facilities 50 40 2.30 0% 2.14 0% 1.56 0%
Industrial Estate (Rayong), Management Services
Pluakdeang, Rayong, Thailand
Rayong Industrial Land Company Limited 1 Siam Cement Road, Bangsue Industrial Estate 1,000 25 20.57 1% 3.20 0%
(4) Bangkok 10800, Thailand Developer
S I L Industrial Land (Saraburi) 111 Moo 7, Nong Pla Mao Sub-District Industrial Estate 500 25 3.29 0% (4.22) 0%
Company Limited Nong Khae District, Saraburi Developer
18140, Thailand
Glow Hemaraj Energy Company Limited 195 Empire Tower, 38th Floor Electricity and 110 49.99 (1.84) 0% (0.16) 0%
Park Wing, South Sathorn Road Power Generation
Bangkok 10120, Thailand
Related Companies
Eastern Fluid Transport 618 Nimom Makkasan Road Management 10 15
Company Limited Makkasan, Ratchthewi and Maintenance
Bangkok 10400, Thailand of Pipe Rack
Total Revenue : Hemaraj Land And Development PLC. and Subsidiaries 4,079.15 100% 3,009.94 100% 3,733.81 100%
Remark
1) Incorporated in the Cayman Islands
2) Incorporated in the Territory of the British Virgin Islands
3) Held 74.99 % directly and 25% indirectly through Eastern Industrial Estate Company Limited
4) Held 25% direct in S I L Industrial Land (Saraburi) Company Limited and also S I L held 99.99% in Rayong Industrial Land Company Limited
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Other References
Share Registrar Thailand Securities Depository Co., Ltd.
62 The Stock Exchange of Thailand Bldg. 4th Floor
6-7th Floor, Rachadapisek Road, Klongtoey
Bangkok 10110, Thailand
Tel. 0-2359-1200-1
Auditor A.M.T & Associates
491/27 Silom Plaza, Silom Road, Bangruk
Silom Road, Bangruk
Bangkok 10500, Thailand
Tel. 0-2234-1676, 0-2234-1678
Fax 0-2237-2133
Professor Kesree Narongdej CPA No. 76
Attorney Allen & Overy (Thailand) Co., Ltd.
130 Sindhorn Building III, 22nd Floor, Wireless Road
Bangkok 10330, Thailand
Tel. 0-2263-7600
Financial Advisor Per Project
Advisor or Manager The Brooker Group
under contract management 16th Floor, Harindhorn Building,
54 North Sathorn Road, Bangrak,
Bangkok 10500, Thailand
Tel. 0-2267-9222
Fax 0-2632-2606
บรษิทั เหมราชพฒันาทีด่นิ จำกดั (มหาชน) Hemaraj Land and Development Public Company Limited
บรษิทั เหมราชพฒันาทีด่นิ จำกดั (มหาชน) Hemaraj Land and Development Public Company Limited
ชัน้ 18 อาคารยเูอม็ทาวเวอร ์เลขที ่9 ถนนรามคำแหง สวนหลวง กรงุเทพมหานคร 10250 โทรศพัท ์: 66-2719-9555 โทรสาร : 66-2719-9546-7 18th Fl., UM Tower, 9 Ramkhamhaeng Rd., Suangluang, Bangkok 10250 THAILAND Tel : 66-2719-9555 Fax : 66-2719-9546-7 e-mail : [email protected], www.hemaraj.com, www.theparkresidence.co.th Registration No. : BORMORJOR.0107536000676 ทะเบียนเลขที่ : บมจ.0107536000676
ร า ย ง า น ป ร ะ จํ า ปี 2 5 4 9 A n n u a l R e p o r t 2 0 0 6
WORLD CLASS INDUSTRIAL ESTATES,
UTILITIES, SME FACTORIES AND SERVICES
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