Notes to Interim Financial Statements For the three-month period ended March 31, 2013 (Reviewed)

Transcription

1 ENERGY EARTH PUBLIC COMPANY LIMITED AND ITS SUBSIDIRIES Notes to Interim Financial Statements These notes form an integral part of the financial statements. The interim financial statements were authorized for issue by the board of directors on May 14, GENERAL INFORMATION Energy Earth Public Company Limited is listed on the Market for Alternative Investment of Thailand (MAI).The principal business operations principally engaged in the manufacture and distribution of coal. The office is located on 889, 12th Floor Thai CC Tower, Room , South Sathorn Road, Yannawa, Bangkok. On January 29, 2013, The Frankfurt Stock Exchange - Open Market has approved the Company s common shares to list in the Frankfurt Stock Exchange - Open Market in form of Secondary listing. The Company has used existing 1,276,692,885 common shares (49% of the paid-up share capital) without increasing share capital to trade. 2. BASIS FOR INTERIM FINANCIAL STATEMENT PREPARATION The interim financial statements issued for Thai reporting purposes are prepared in the Thai language. This English translation of the interim financial statements has been prepared for the convenience of readers not conversant with the Thai language. The interim financial statements are prepared on a condensed basis in accordance with Thai Accounting Standard No. 34 (revised 2009) Interim Financial Reporting; guidelines promulgated by the Federation of Accounting Professions (FAP); applicable rules and regulations of the Thai Securities and Exchange Commission. These interim financial statements are presented in Thai Baht which is different from the functional currency of the Company, which is US Dollar. The presentation is in Thai Baht in accordance with the regulatory requirements in Thailand. The USD functional currency interim financial statements are translated into the Thai Baht presentation currency financial statements at the rate of exchange prevailing at the end of reporting period in respect of assets and liabilities, and at a rate that approximates the actual rate at the date of the transaction in respect of revenues and expenses, differences being recorded as Exchange differences on translation of financial statements in other comprehensive income, other component of shareholders' equity. The interim financial statements are prepared to provide an update on the financial statements for the year ended. They do not include all of the financial information required for full annual financial statements but focus on new activities, events and circumstances to avoid repetition of information previously reported. Accordingly, these interim financial statements should be read in conjunction with the financial statements for the year ended. The consolidated financial statements as at and, include the accounts of The Company and its subsidiaries which the Company has controlling power or directly on this subsidiaries as follows: Name of Companies Country of registration Percentage of holdings Type of business Energy Perfect Co., Ltd. Thailand Manufacture and distribution of coal. PT. Tri Tunggal Pitriati Indonesia Mining of coal. 10

2 All significant intercompany transactions between the Company and its subsidiaries included in the consolidated financial statements have been eliminated. 3. SIGNIFICANT ACCOUNTING POLICIES The interim financial statements are prepared using the same accounting policies and methods of computation as were used for the financial statements for the year ended, except for the change in the accounting policies due to the adoption of TAS 12 Income Taxes and TAS 21 The Effects of Changes in Foreign Exchange Rates which are effective, as follow: 3.1 Income Tax Income tax expense represents the sum of corporate income tax currently payable and deferred tax. Current tax Current income tax is provided in the accounts at the amount expected to be paid to the taxation authorities, based on taxable profits determined in accordance with tax legislation. Deferred tax Deferred income tax is provided on temporary differences between the tax bases of assets and liabilities and their carrying amounts at the end of each reporting period. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. The Company and its subsidiaries recognise deferred tax liabilities for all taxable temporary differences while they recognise deferred tax assets for all deductible temporary differences and tax losses carried forward to the extent that it is probable that future taxable profit will be available against which such deductible temporary differences and tax losses carried forward can be utilised. At each reporting date, the Company and its subsidiaries review and reduce the carrying amount of deferred tax assets to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. The Company and its subsidiaries record deferred tax directly to shareholders' equity if the tax relates to items that are recorded directly to shareholders' equity. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. 3.2 The Effects of Changes in Foreign Exchange Rates The Group operates in a USD environment, with purchases and sales predominantly quoted and settled in USD. Accordingly, the management determines that USD is the functional currency of Group s vessel operating entities whilst Thai Baht is the presentation currency of the Group. TAS 21 requires all transactions to be initially recorded in the functional currency, USD. All transactions that are not denominated in USD are foreign currency transactions; exchange differences arising on translation generally are recognised in profit or loss. Exchange differences arising from translation of functional currency to presentation currency are recognised in other comprehensive income, other components of shareholders' equity. 11

3 The adoption of this standard is considered to be a change in accounting policy under TAS 8 (Revised 2009) Accounting Policies, Changes in Accounting Estimates and Errors whereby the effects of changes in accounting policy have been applied retrospectively as though the financial statements had originally been prepared using USD functional currency. 4. APPLICATION OF NEW ACCOUNTING STANDARDS The Federation of Accounting Professions issued the accounting standards, financial reporting standard, accounting standard interpretations and accounting treatment guidance that are effective as follows: a) Effective for the period beginning on or after January 1, 2013 Accounting standards: TAS 12 Income Tax TAS 20 (Revised 2009) Accounting for Government Grants and Disclosure of Government Assistance TAS 21 (Revised 2009) The Effects of Changes in Foreign Exchange Rates Financial Reporting Standard: TFRS 8 Operating Segments Accounting Standard Interpretations: Government Assistance-No Specific Relation to Operating SIC 10 Activities SIC 21 Income Taxes-Recovery of Revalued Non-Depreciable Assets Income Taxes-Changes in the Tax Status of an Entity or its SIC 25 Shareholders Accounting Treatment Guidance for Transfers of Financial Assets The Company and its subsidiaries made the change described in Note 3 to the interim financial statements to its significant accounting policies, as a result of the adoption of TAS 12 Income Taxes and TAS 21 (Revised 2009) The Effects of Changes in Foreign Exchange Rates. The cumulative effect of the change in the accounting policies has the effect to the consolidated financial statements which has been separately presented in the statements of changes in shareholders equity. A summary of how these adjustments arising from TAS 12 and TAS 21 (Revised 2009) have affected the financial statements are set out in the Note 5 to the financial statements. b) New accounting standards issued not yet effective During the period, the Federation of Accounting Professions has issued notifications, already published in the Royal Gazette, mandating the use of financial reporting standard, accounting standard interpretation and financial reporting standard interpretations as follows: 12

4 Effective date Financial Reporting Standard TFRS 4 Insurance Contracts January 1, 2016 Accounting Standard Interpretation: SIC 29 Service Concession Arrangements: Disclosures January 1, 2014 Financial Reporting Standard Interpretations: TFRIC 1 Changes in Existing Decommissioning, Restoration and January 1, 2014 Similar Liabilities TFRIC 4 Determining whether an Arrangement contains a Lease January 1, 2014 TFRIC 5 Rights to Interests arising from Decommissioning, January 1, 2014 Restoration and Environmental Rehabilitation Funds TFRIC 7 Applying the Restatement Approach under TAS 29 January 1, 2014 TFRIC 10 Interim Financial Reporting and Impairment January 1, 2014 TFRIC 12 Service Concession Arrangements January 1, 2014 TFRIC 13 Customer Loyalty Programmes January 1, 2014 The management of the Company and its subsidiaries has assessed the effect of the above financial reporting standard, accounting standard interpretation and financial reporting standard interpretations and believes that these accounting standards will not have any significant impact on the financial statements for the year when they are initially applied. 5. CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING POLICY AND CORRECTION OF ERROR In the 1 st quarter in year 2013, the Company has correction of error in the record of goodwill that occurred from reverse acquisition in the consolidated financial statements for the year 2010, because the discrepancy between the fair value of net acquisition assets with the fair value of non-controlling interests in subsidiary at the acquisition date should be recognized as expense in the consolidated financial statements for the year Thus, the Company has restated the consolidated financial statements as at and January 1, 2012 to comparative purpose. As a result, the Company has no goodwill in the consolidated financial statements as at and January 1, 2012 and retained earnings in the consolidated financial statements as at and January 1, 2012 is decreased by amount of Baht million. The amounts of adjustments affecting the statements of financial position and the statements of comprehensive income are summarized below: (1) Thai Accounting Standard No. 12 Income Tax (Note 3.1) (2) Thai Accounting Standard No. 21(Revised 2009) The Effects of Changes in Foreign Exchange Rates (Note 3.2) (3) Adjusted Transaction from Correction of Error 13

5 Statement of financial position as at after the new accounting policy was applied. Before Change in accounting policies Correction of Error After Restatement (1) (2) (3) Restatement ASSETS CURRENT ASSETS Cash and cash equivalents 147, ,552 Trade account and other receivables 4,334,678 - (1,158) - 4,333,520 Inventories 583,496 - (12,700) - 570,796 Advance payment from purchase of goods 1,909,496-54,645-1,964,141 Other current assets 21, ,611 Total current assets 6,996,912-41,708-7,038,620 NON-CURRENT ASSETS Deposits from financial institutions pledged as collateral 525, ,304 Property, plant and equipment 246,110 - (4,073) - 242,037 Assets not used operations 173,466 - (10,364) - 163,102 Mining property rights 833,901 - (8,535) - 825,366 Goodwill 36, (36,478) - Deferred tax assets - 12, ,814 Other non-current assets 1, ,048 Total non-current assets 1,816,306 12,814 (22,971) (36,478) 1,769,671 TOTAL ASSETS 8,813,218 12,814 18,737 (36,478) 8,808,291 14

6 LIABILITIES AND SHAREHOLDERS' EQUITY Before Change in accounting policies Correction of Error After Restatement (1) (2) (3) Restatement CURRENT LIABILITIES Bank overdrafts and short-term loans from financial institutions 5,142, ,142,089 Trade accounts and other payables 233,473 - (174) - 233,299 Current portion of long - term loans from financial institutions 14, ,194 Current portion of liabilities under hire-purchase agreements 2, ,201 Income tax payable 304,977 - (174) - 304,803 Other current liabilities 3,880 - (90) - 3,790 Total current liabilities 5,700,814 - (438) - 5,700,376 NON-CURRENT LIABILITIES Long-term loans from financial institutions net of current portion 30, ,618 Liabilities under hire-purchase agreements net of current portion 3, ,619 Employee benefit obligations 1, ,927 Deferred tax liabilities - 214, ,883 Total non-current liabilities 36, , ,047 TOTAL LIABILITIES 5,736, ,883 (438) - 5,951,423 15

7 Before Change in accounting policies Correction of Error After Restatement (1) (2) (3) Restatement SHAREHOLDERS' EQUITY Common shares Authorized shares - Baht 1 par value 3,027,615,570 common shares 3,027, ,027,616 Issued and paid-up common shares 2,605,495,683 common shares as at and 2,554,170,445 common shares as at 31, ,605, ,605,496 Share premium 796, ,214 Share discount (1,800,000) (1,800,000) Adjustment of equity interests under reverse acquisition (186,617) (186,617) Total 1,415, ,415,093 Appropriated - legal reserve 95, ,200 Retained earnings (deficit) 1,619,328 (202,069) (10,065) (36,478) 1,370,716 Other components of shareholders' equity (54,235) - 28,977 - (25,258) Equity attribuable to owners of Company 3,075,386 (202,069) 18,912 (36,478) 2,855,751 Non-controlling interests ,117 TOTAL SHAREHOLDERS' EQUITY 3,076,240 (202,069) 19,175 (36,478) 2,856,868 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 8,813,218 12,814 18,737 (36,478) 8,808,291 16

8 The Company only Before Change in accounting policies Correction of Error After Restatement (1) (2) (3) Restatement ASSETS CURRENT ASSETS Cash and cash equivalents 123, ,315 Trade accounts and other receivables 1,441, ,441,886 Inventories 583,496 - (12,700) - 570,796 Loans and accrued interest income to related companies 2,445, ,445,844 Advance payment from purchase of goods 883,347 - (1) - 883,346 Other current assets 17, ,656 Total current assets 5,495,544 - (12,701) - 5,482,843 NON-CURRENT ASSETS Deposits from financial institutions pledged as collateral 335, ,633 Investments in subsidiaries 1,302,651 - (14,141) - 1,288,510 Property, plant and equipment 3,747 - (26) - 3,721 Deferred tax assets - 6, ,434 Other non-current assets Total non-current assets 1,642,336 6,434 (14,166) - 1,634,604 TOTAL ASSETS 7,137,880 6,434 (26,867) - 7,117,447 17

9 The Company only Before Change in accounting policies Correction of Error After Restatement (1) (2) (3) Restatement LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Bank overdrafts and short-term loans from financial institutions 3,278, ,278,679 Trade accounts and other payables 624, ,789 Short-term loans and accrued interest expenses 1, ,016 Current portion of liabilities under hire-purchase agreements Income tax payable 124, ,442 Other current liabilities 1,792 - (2) - 1,790 Total current liabilities 4,031,048 - (2) - 4,031,046 NON-CURRENT LIABILITIES Liabilities under hire-purchase agreements net of current portion Employee benefit obligations 1, ,261 Deferred tax liabilities Total non-current liabilities 1, ,171 TOTAL LIABILITIES 4,032, (2) - 4,033,217 SHAREHOLDERS' EQUITY Share Capital Authorized shares - Baht 1 par value 3,027,615,570 common shares Issued and paid-up shares 3,027, ,027,616 2,605,495,683 common shares, Baht 1 par value as at and 2,554,170,445 common shares as at 31, ,605, ,605,496 Premium on shares capital 796, ,214 Discount on shares capital (1,800,000) (1,800,000) Total 1,601, ,601,710 Retained earnings Appropriated - legal reserve 75, ,200 Unappropriated 1,428,041 6,144 43,827-1,478,012 Other components of shareholders' equity - - (70,692) - (70,692) TOTAL SHAREHOLDERS' EQUITY 3,104,951 6,144 (26,865) - 3,084,230 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 7,137,880 6,434 (26,867) - 7,117,447 18

10 Statement of financial position as at January, 2012 after the new accounting policy was applied. Before Change in accounting policies Correction of Error After Restatement (1) (2) (3) Restatement ASSETS CURRENT ASSETS Cash and cash equivalents 174, ,607 Trade accounts and other receivables 1,309,987-3,498-1,313,485 Inventories 195,181-3, ,258 Advance payment from purchase of goods 389, ,188 Other current assets 19, ,504 Total current assets 2,088,542-7,500-2,096,042 NON-CURRENT ASSETS Deposits from financial institutions pledged as collateral 426, ,080 Property, plant and equipment 266,420-22, ,672 Assets not used operations 179,831 - (6,477) - 173,354 Mining property rights 1,104,109-22,752-1,126,861 Goodwill 36, (36,478) - Deferred tax assets - 9, ,609 Other non-current assets 1, ,062 Total non-current assets 2,013,964 9,609 38,543 (36,478) 2,025,638 TOTAL ASSETS 4,102,506 9,609 46,043 (36,478) 4,121,680 19

11 LIABILITIES AND SHAREHOLDERS' EQUITY Before Change in accounting policies Correction of Error After Restatement (1) (2) (3) Restatement CURRENT LIABILITIES Bank overdrafts and short-term loans from financial institutions 1,896, ,896,567 Trade accounts and other payable 180,064 - (20) - 180,044 Current portion of long-term loans from financial institutions 14, ,130 Current portion of liabilities under hire-purchase agreements 3, ,288 Income tax payable 113,650 - (2) - 113,648 Other current liabilities 3, ,158 Total current liabilities 2,210,852 - (17) - 2,210,835 NON-CURRENT LIABILITIES Long-term loans from financial institutions 44, ,813 Liabilities under hire-purchase agreements 6, ,325 Employee benefit obligations 1, ,547 Deferred tax liabilities - 303, ,149 Total non-current liabilities 52, , ,834 TOTAL LIABILITIES 2,263, ,149 (17) - 2,566,669 20

12 Before Change in accounting policies Correction of Error After Restatement (1) (2) (3) Restatement SHAREHOLDERS' EQUITY Common shares Authorized shares - Baht 1 par value 3,027,615,570 common shares 3,027, ,027,616 Issued and paid-up shares 2,554,170,445 common shares, Baht 1 par value as at January 1, ,554, ,554,170 Premium on shares capital 772, ,297 Discount on shares capital (1,800,000) (1,800,000) Adjustment of equity interests under reverse acquisition (186,617) (186,617) Total shares capital 1,339, ,339,850 Retained earnings Appropriated - legal reserve 2, ,950 Unappropriated 431,144 (293,540) 37,442 (36,478) 138,568 Other components of shareholders' equity 63,921-8,619-72,540 Equity attribuable to owners of Company 1,837,865 (293,540) 46,061 (36,478) 1,553,908 Non-controlling interests 1,104 - (1) - 1,103 TOTAL SHAREHOLDERS' EQUITY 1,838,969 (293,540) 46,060 (36,478) 1,555,011 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 4,102,506 9,609 46,043 (36,478) 4,121,680 21

13 The Company only Before Change in accounting policies Correction of Error After Restatement (1) (2) (3) Restatement ASSETS CURRENT ASSETS Cash and cash equivalents 9, ,974. Trade accounts and other receivables 99, ,381 Advance payment from purchase of goods 108,280 - (272) - 108,008 Other current assets Total current assets 218,022 - (272) - 217,750 NON-CURRENT ASSETS Deposits from financial institutions pledged as collateral 70, ,790 Investments in subsidiaries 1,302,651-30,864-1,333,515 Property, plant and equipment 1, ,047 Deferred tax assets - 4, ,604 Other non-current assets Total non-current assets 1,375,644 4,604 30,986-1,411,234 TOTAL ASSETS 1,593,666 4,604 30,714-1,628,984 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Bank overdrafts and short-term loans from financial institutions 247, ,106 Trade and other accounts payables 10, ,044 Current portion of liabilities under hire-purchase agreements Other current liabilities Total current liabilities 257, ,727 NON-CURRENT LIABILITIES Liabilities under hire-purchase agreements net of current portion Employee benefit obligations 1, ,034 Other non- current liabilities - 7, ,362 Total non-current liabilities 1,985 7, ,347 TOTAL LIABILITIES 259,712 7, ,074 22

14 The Company only Before Change in accounting policies Correction of Error After Restatement (1) (2) (3) Restatement SHAREHOLDERS' EQUITY Common shares Authorized shares - Baht 1 par value 3,027,615,570 common shares 3,027, ,027,616 Issued and paid-up 2,554,170,445 common shares, Baht 1 par value as at January 1, ,554, ,554,170 Premium on shares capital 772, ,297 Discount on shares capital (1,800,000) (1,800,000) Total shares capital 1,526, ,526,467 Retained earnings (deficit) (192,513) (2,758) 7,124 - (188,147) Other components of shareholders' equity ,590-23,590 TOTAL SHAREHOLDERS' EQUITY 1,333,954 (2,758) 30,714-1,361,910 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,593,666 4,604 30,714-1,628,984 23

15 Statement of comprehensive income for the three-month period ended after the new accounting policy was applied. Before Change in accounting policies Correction of Error After Restatement (1) (2) (3) Restatement Incomes Sales 1,879,798-11,999-1,891,797 Profit on foreign exchange rate 37,501 - (37,501) - - Other incomes 1, ,176 Total incomes 1,918,964 - (24,991) - 1,893,973 Expenses Cost of sales 1,488,176 - (18,883) - 1,469,293 Selling expenses 27, ,461 Administrative expenses 28,492 - (4,814) - 23,678 Managements' remuneration - - 4,800-4,800 Loss on exchange rate ,360-14,360 Other expenses (1,140) - 1, Finance costs 29, ,879 Total expenses 1,572,867 - (3,396) - 1,569,471 Profit before income tax 346,097 - (21,595) - 324,502 Income tax expense (83,412) (308) 5,611 - (78,109) PROFIT FOR THE PERIOD 262,685 (308) (15,984) - 246,393 Translation adjustments (28,948) - (9,988) - (38,936) Total comprehensive income 233,737 (308) (25,972) - 207,457 Profit for the period attributable to: Owner of the Company 262,681 (308) (16,024) - 246,349 Non-controlling interests ,685 (308) (15,984) - 246,393 Profit and comprehensive income for the period: Owner of the Company 233,736 (308) (26,015) - 207,413 Non-controlling interests ,737 (308) (25,972) - 207,457 Earnings per share Basic earnings - Equity holders of the parent company Diluted earnings - Equity holders of the parent company

16 Statement of comprehensive income for the three-month period ended after the new accounting policy was applied. Before Change in accounting policies Correction of Error After Restatement (1) (2) (3) Restatement Incomes Sales 236, ,014 Dividend income 340, ,000 Profit on foreign exchange rate 2,078-3,944-6,022 Other incomes 1, ,064 Total incomes 579,156-3, ,100 Expenses Cost of sales 206,154 - (1,326) - 204,828 Selling expenses 3, ,372 Administrative expenses 26,389 - (4,800) - 21,589 Managements' remuneration - - 4,800 4,800 Other expenses 1, ,110 Finance costs 9, ,099 Total expenses 246,123 - (1,325) - 244,798 Profit before income tax 333,033-5, ,302 Income tax income PROFIT FOR THE PERIOD 333,033-5, ,544 Translation adjustments - - (35,081) - (35,081) TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 333, (29,686) - 303,463 Earnings per share Basic earnings - Equity holders of the parent company Diluted earnings - Equity holders of the parent company RELATED PARTIES TRANSACTIONS A portion of the Company s assets, liabilities, revenues, costs and expenses arose from transactions with related companies. Related parties are those parties controlled by the Company, directly or indirectly or significant influence, to govern the financial and operating policies of the Company. The relationships with related parties are as follows: The Company s name Type of business Type of relationship Subsidiaries Energy Perfect Co., Ltd. Manufacture and Direct shareholding, shareholders distribution of coal and directorship PT.Tri Tunggal Pitriati Mining of coal Direct shareholding, shareholders and directorship Related Company WTEC Co., Ltd. Distribution of computer Directorship equipment and computer programs 25

17 Pricing policies for each transaction are described as follows: Type of transactions Income from management fee Interest income Purchase of goods Pricing policies 1% from International sales of subsidiary Interest at the rate of 7.7% per annum - Local 15% discount from selling price that Subsidiary sold to others - Abroad Cost plus margin Factory rental Baht 200,000 per month Coal processing service expense Baht 160 per ton (Less than 50,000 tons) Baht 140 per ton (More than 50,000 tons) Rental expenses Baht 12,000-29,000 per month Interest expense Interest at the rate of 7.7% per annum Purchase of equipment Mutually agreed price Significant revenues and expenses derived from transactions with related parties for the three - month periods ended and 2012 are summarized as follows: Income from management fee Energy Perfect Co., Ltd ,494 - PT.Tri Tunggal Pitriati ,059 - Total ,553 - Interest income Energy Perfect Co., Ltd , PT.Tri Tunggal Pitriati ,708 - Total , Purchase of goods Energy Perfect Co., Ltd ,848 PT.Tri Tunggal Pitriati - - 1,246,745 - Total - - 1,246, ,848 Coal processing service expense Energy Perfect Co., Ltd ,796 5,796 Factory rental Energy Perfect Co., Ltd Vehicle rental Energy Perfect Co., Ltd Interest expenses Energy Perfect Co., Ltd

18 Purchase of equipment and vehicle WTEC Co., Ltd Significant outstanding balances with its related companies as at and are summarized as follows: Other account receivable Energy Perfect Co., Ltd , ,774 PT.Tri Tunggal Pitriati ,356 - Total , ,774 Accrued interest income and short-term loan to subsidiaries Short-term loan to subsidiaries Energy Perfect Co., Ltd ,205,784 1,084,685 PT.Tri Tunggal Pitriati - - 1,330,148 1,332,867 Total - - 2,535,932 2,417,552 Accrued interest income Energy Perfect Co., Ltd ,420 9,523 PT.Tri Tunggal Pitriati ,667 28,292 Total ,087 37,815 Total accrued interest income and short-term loan to subsidiaries - - 2,606,019 2,445,844 Trade account payables Energy Perfect Co., Ltd ,414 PT.Tri Tunggal Pitriati , ,697 Total , ,111 Short-term loan from subsidiary Energy Perfect Co., Ltd ,000 1,000 Accrued interest expenses Energy Perfect Co., Ltd Total accrued interest expenses and shortterm loan from subsidiary - - 1,019 1,016 Accrued expenses Energy Perfect Co., Ltd ,996 1,107 Payable from acquisition of assets WTEC Co., Ltd Other payable Energy Perfect Co., Ltd

19 Movement of short-term loan and accrued interest to subsidiaries during the three-month period ended are as follows: Increase Decrease Translation adjustment Short-term loan to subsidiaries Energy Perfect Co., Ltd. 1,084, ,292 (597,376) 7,183 1,205,784 PT.Tri Tunggal Pitriati 1,332,867 1,326,071 (1,257,824) (70,966) 1,330,148 Total 2,417,552 2,037,363 (1,855,200) (63,783) 2,535,932 Accrued interest Energy Perfect Co., Ltd. 9,523 20,949 (9,313) ,421 PT.Tri Tunggal Pitriati 18,769 31,398 - (1,501) 48,666 Total 28,292 52,347 (9,313) (1,239) 70,087 Total short-term loan to subsidiaries and accrued interest 2,445,844 2,089,710 (1,864,513) (65,022) 2,606,019 Movement of short-term loan and accrued interest from related parties during the three-month period ended are as follows: Short-term loan from subsidiary Increase Decrease Translation adjustment Energy Perfect Co., Ltd. 1, ,000 Accrued interest Energy Perfect Co., Ltd (16) - 19 Total short-term loan from subsidiary and accrued interest 1, (16) - 1,019 28

20 7. CURRENT INVESTMENTS Current investments Cost and the Company Only Unrealized Unrealized Fair gain (loss) on Fair gain (loss) on value exchange rate Cost value exchange rate Trading securitiesequity securities 80,000 80, TRADE ACCOUNT AND OTHER RECEIVABLES Trade account receivables In due 3,194,771 3,876, , ,301 Over due Up to 3 Months 1,402, , , ,107 Over 3-6 Months 3,403 15,953 3,403 15,953 Over 6-12 Months 6, , Over 12 Months 3,894 4, Total 4,611,470 4,251,634 1,085, ,522 Less Allowance for doubtful accounts (3,894) (4,224) - - Net 4,607,576 4,247,410 1,085, ,522 Other receivable Other receivables - related companies , ,774 Other receivables - others companies 152,358 54, ,274 24,972 Prepaid expenses 17,914 31,283 15,248 29,618 Total other receivables 170,272 86, , ,364 Total trade account and other receivables 4,777,848 4,333,520 1,844,591 1,441,886 As at and the Company has trade accounts receivable to make factoring with financial institution amounting to Baht million and Baht million, respectively. 29

21 9. INVENTORIES Raw Materials 1,367, , , ,028 Gasoline Finished goods 118, ,431 - Goods in transit - 51,978-51,978 Total 1,486, , , ,898 Less Allowance for obsolescence inventories (1,054) (1,102) (1,054) (1,102) Net 1,485, , , , DEPOSITS FROM FINANCIAL INSTITUTION PLEDGED AS COLLATERAL As at, The consolidated and, the Group and the Company held deposits with financial institutions amounting to Baht million and Baht million respectively, (As at : Baht million and Baht million, respectively) which were pledged as collateral for credit facilities from financial institutions (Note 17) and collateral for the usage of electricity. 30

22 ENERGY EARTH PUBLIC COMPANY LIMITED AND ITS SUBSIDIRIES Notes to Interim Financial Statements 11. INVESTMENTS IN SUBSIDIARIES Paid-up capital (Million) % of Holdings Cost Method Dividend income for the three-month periods ended 31, , , , , , , ,2012 Currency Restated Energy Perfect Co., Ltd. (Import coal and trading coal) Baht , , ,000 PT.TRI TUNGGAL PITRIATI (Mining of coal) Rupiah 8,521 8, ,039,368 1,086, Total 1,232,871 1,288, ,000 31

23 ENERGY EARTH PUBLIC COMPANY LIMITED AND ITS SUBSIDIRIES Notes to Interim Financial Statements 12. PROPERTY, PLANT AND EQUIPMENT Change in property, plant and equipment for the three month period ended are as follows: For the three-month period ended Net book value as at January 1, ,037 3,721 Purchase during the period at cost Reversal of allowance for impairment of fixed assets Depreciation for the period (5,823) (227) Translation adjustment (10,451) (160) Net book value as at 226,429 3,511 Leased assets included above, where the Group is a lessee under hire purchase agreements, are as follows: 31, , 2012 Restated 31, , 2012 Restated Cost 12,190 13,256 1,596 1,668 Less Accumulated depreciation (5,873) (5,913) (530) (472) Net book value 6,317 7,343 1,066 1,196 As at the Subsidiary has fully depreciated of fixed assets which are still in use, the cost of such assets has amounted to Baht 2.70 million (As at : Baht 2.68 million). As at and,, Property, plant and machineries of the Group in the consolidated financial statements amounting net book value of Baht million and Baht million, respectively is mortgaged as collateral for short-term loans and long-term loans from financial institutions (Notes 15 and 17). The subsidiary s land and land not use in operation were revalued on 19 and 21, 2012 by independent appraiser. Valuations were made on the basis of Market Approach. The book values of the land were adjusted to the revalued amounts and the surplus on revaluation of land decreased in amounting of Baht 4.87 million. The subsidiary recorded surplus on revaluation of land in shareholders equity. 32

24 13. ASSETS NOT USED IN OPERATIONS Restated Land 59,483 62,167 Land improvement 96, ,935 Total 156, ,102 As at and, The Subsidiary has land not use in operations amounting of Baht million and Baht million, respectively is mortgaged as collateral for short-term loans and long-term loans from financial institutions (Notes 15 and 17). 14. MINING PROPERTY RIGHTS Movements of mining property rights for the three-month period ended are as follows: Net book value as at January 1, ,366 - Less Amortization of mining property rights (109,415) - Translation adjustment (29,361) - Net book value at as 686, BANK OVERDRAFTS AND SHORT-TERM LOANS FROM FINANCIAL INSTITUTIONS Interest rates (%) of per annum Overdrafts ,443 52,992 30,053 28,585 Promissory notes , , , ,467 Trust receipts ,029,358 2,204,259 1,607,970 1,932,048 Accounts payable factoring , , , Packing Credit ,629,796 1,787, , ,950 Total 5,735,393 5,142,089 3,378,975 3,081,248 As at, The Group has overdrafts facilities, packing credits and the short-term loans from financial institutions amounting to Baht 11,021 million. (As at : amounting to Baht 6,582 million.) The loans charged interest at the rate of floating interest rate. 33

25 The overdrafts facilities and the short-term loans from financial institutions facilities are secured over deposits from financial institutions (Note 10), property, plant and machineries (Note 12), assets not use in operations (Note 13) guaranteed by the Company and subsidiary, partial of directors shares and directors. Under the terms of the loan agreement, the Group must comply with the terms and conditions of certain loan agreements such as secured over current ratio etc. 16. TRADE ACCOUNT AND OTHER PAYABLES Trade account payables - related company , ,112 Trade account payables - other companies 288,085 72, ,099 Accrued expenses 113, , , ,294 Other account payables Total trade account and other account Payables 401, , , , LONG-TERM LOANS FROM FINANCIAL INSTITUTIONS Long-term loans from financial institutions 41,271 44, Less Current portion (14,205) (14,194) - - Net 27,066 30, The first line Loan amounted to Baht 3.81 million, which is monthly repayable within 60 equal installment dues of Baht 0.07 million each. The first payment was paid in This loan bears interest at the rate of MLR% per annum. The second line Loan amounted to Baht million, which is monthly repayable within 72 equal installment dues of Baht 1.12 million each. The first payment was paid in May This loan bears interest at the rate of MLR% per annum. The movements of long-term loans for the three-month period ended are as follows: Beginning balance as at January 1, ,812 Less Repayment of loan (3,456) Translation adjustment (85) Ending balance as at 41,271 Such credit facilities are guaranteed by property, plant and machineries (Note 12), assets not used in operations (Note 13) thereon and directors of company. 34

26 Under the loan agreement terms, the Subsidiary must comply with the condition of loan covenants such as maintain the current ratio, debt to equity ratio and debt service coverage etc. 18. LIABILITIES UNDER HIRE - PURCHASE AGREEMENT Liabilities under finance lease agreements 5,626 6, ,071 Less : Deferred interest expense (397) (486) (99) (121) 5,229 5, Less : Portion due within one year (2,109) (2,201) (309) (330) Net 3,120 3, INCOME TAX The Company and its subsidiaries income tax expenses for the three-month periods ended and 2012 as follows: Restated" Restated" Current income tax expenses: Current income tax expenses for periods (116,128) (83,309) (72,105) - Deferred tax: Relating to origination and reversal of temporary differences 26,171 (284) Tax income relating to the imposition of new tax rate (391) (90,348) (83,593) (72,102) 242 Effect of differences in the translation of the tax base 9,234 5, Income tax income (expense) reported in the statement of comprehensive income (81,114) (78,109) (72,102)

27 Reconciliation between income tax expenses and the product of accounting profit multiplied by the applicable tax rates for the three-month periods ended and 2012 as follows: Restated" Restated" Accounting profit before tax 449, , , ,302 Applicable tax rate 20% 23% 20% 23% Accounting profit before tax multiplied by applicable tax rate (130,572) (159,550) (87,978) (77,809) Effects of deferred tax 24,685 75,830 (58) 77,925 Effect of income exempt from tax and non-deductible expenses for tax purposes (397) - (3) - Income tax expense reported in the statement of comprehensive income (106,284) (84,720) (88,039) 116 Effect of differences in the translation of the Tax base 25,170 5,611 15, Income tax expenses reported in the statement of comprehensive income 81,114 (78,109) (72,102) 242 The components of deferred tax assets and liabilities as at and are as follows: Deferred tax assets Restated" Restated" Allowance for doubtful accounts Allowance for diminution in value of inventories Allowance for impairment of fixed assets 1,807 2, Unrealized profit in inventories 9, Translation adjustments 24,879 9,494 18,581 6,179 36,917 12,923 18,803 6,434 Effect of differences in the translation of the Tax base (104) (109) (11) - Total 36,813 12,814 18,792 6,434 36

28 Restated" Restated" Deferred tax liabilities Employee benefit obligations Amortization of mining property rights 166, , Surplus on revaluation of land 11,736 13, , , Effect of differences in the translation of the Tax base (473) (8) (17) - Total 178, , SHARE CAPITAL On October 17, 2011, 444,519,122 share warrants of the Company were approved to be traded in on the Market for Alternative Investment of Thailand (MAI) and can be exercised on 15, and September 15, of each years. The first and last exercise dates will be on 15, 2012 and September 15, 2016, respectively. Unit Share warrants (EARTH-W3) as at 394,347,822 Warrants exercised As at 15, 2013 (335,867,477) Warrants had not been exercised 58,480,345 On at 15, 2013, The Company recorded cash receipt from warrants exercise of Baht 503,706,492. The Company registered the increase in paid-up share capital from such exercise with the Department of Business Development on 20, 2013 for 343,592,408 common shares. The increase share capital was approved to be traded in on the Market for Alternative Investment of Thailand (MAI) on 25, LEGAL RESERVE Pursuant to Section 116 of the Public Limited Companies Act B.E. 2535, the Company is required to set aside to a legal reserve at least 5 percent of its net profit after deducting accumulated deficit brought forward (if any), until the reserve reaches 10 percent of the registered capital. The legal reserve is not available for dividend distribution. 37

29 22. SEGMENT FINANCIAL INFORMATION Segment information is presented in respect of the Company and its subsidiaries business segments. Operating segment information is reported in a manner consistent with the internal reports that are regularly reviewed by the chief operating decision maker in order to make decisions about the allocation of resources to the segment and assess its performance. Segment results and operating assets include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items mainly comprise interest and income tax expenses and corporate common assets and liabilities. Business segments The Company and its subsidiaries, the principal business operations principally engaged in the coal business. Geographic segments The Company and its subsidiaries comprise 2 main geographic segments as follows: Segment 1 : Segment 2 : Thailand International The segment information of the Company and its subsidiaries for the three-month periods ended 31, 2013 and 2012 as follows: In millions Baht For the three - month periods ended 31 Thailand International Total Restated" Restated" Restated" Revenue from sales ,359 1,656 3,020 1,892 Cost of sales (504) (268) (1,901) (1,201) (2,405) (1,469) Gross profit (loss) 157 (32) Unallocated income and expenses: Loss on exchanges (27) (14) Other income 3 2 Selling expenses (50) (28) Administrative expenses (32) (24) Managements' benefits expenses (5) (5) Finance costs (55) (30) Income tax expenses (81) (78) Profit for the period

30 In millions Baht Property, plant and equipment Other assets 10,181 8,566 Total assets 10,407 8,808 Liabilities segment 6,790 5, EARNINGS PER SHARE Basic earnings per share For the three-month periods ended 31 Net earnings Weighted average number of common shares Earnings (Thousand of Baht) (Thousand of shares) per share (Baht) Restated" Restated" Profit for the period 368, ,349 2,651,308 2,554, Effect of dilutive potential common shares Warrants , ,306 Diluted earnings per share Profit attributable to common shareholders (assuming conversion of potential common share) 368, ,349 2,700,067 2,864, Basic earnings per share For the three-month periods ended 31 Net earnings Weighted average number of common shares Earnings (Thousand of Baht) (Thousand of shares) per share (Baht) Restated" Restated" Profit for the period 367, ,544 2,651,308 2,554, Effect of dilutive potential common shares Warrants , ,306 Diluted earnings per share Profit attributable to common shareholders (assuming conversion of potential common share) 367, ,544 2,700,067 2,864,

31 24. REGISTERED PROVIDENT FUND The Company established a contributory registered provident fund in accordance with the Provident Fund Act.B.E Under the plan, the Company and employees contribute to the fund at certain percentage of the employee s basic salary. The Company appointed a fund manager to manage the fund in accordance with the terms and conditions prescribed in the Ministerial Regulation No.2 (B.E. 2532) issued under the Provident Fund Act B.E Provident fund contribution expenses for the three-month periods ended and 2012 were of Baht 0.36 million and Baht 0.27 million respectively. 25. COMMITMENTS AND CONTINGENT LIABILITIES As at and The Group commitments and contingent liabilities is as follows: Commitment The Company has commitment to pay rental expense agreement amounting of Baht 6.34 million.( 31,2012 : Baht 5.89 million) The Company has commitment to pay rental machinery and equipment amounting of Baht 5.16 million. ( 31,2012 : Baht 6.96 million) The Group and the Company has significant agreement for sale of steam coal with many foreign companies to sell steam coal in the quantity of million metric tons and 8.87 million metric tons respectively. ( 31,2012 : million metric tons and 8.58 million metric tons respectively) Contingent liabilities The Subsidiary has contingent liabilities for letters of guarantee issued by bank for the electricity usage and sale and purchase contract of steam coal amounting of Baht 0.41 million and USD 0.05 million respectively. The Company has contingent liabilities for letters of guarantee issued by bank for purchase of shares in PT. Hary Niaga amounting of USD 3.00 million ( 31,2012 : None) The Company and the subsidiary have contingent liability from guarantee credit facilities from financial institutions amounting of Baht 8,080 million ( : Baht 5,640 million). 26. EVENTS AFTER THE REPORTING PERIOD On April 30, 2013, the Ordinary Shareholders Meeting resolved the resolution to pay dividends at Baht 0.10 per share for 2,605,495,683shares, totaling of Baht 260,549, The dividends will be paid within May 20, FUNCTIONAL CURRENCY FINANCIAL STATEMENTS The USD functional currency the statements of financial position as at and and the statements of comprehensive income for the three-month periods ended 31, 2013 and 2012 are as follows : 40

32 The USD functional currency the statements of financial position as at and 31, 2012 are as follows In Thousand USD CURRENT ASSETS Cash and cash equivalents 15,775 4,873 11,217 4,045 Current investments 2, ,149 2,743 - Trade accounts and other receivable 159,986-59,426 47,297 Inventories 50,921 18,723 22,049 18,723 Loans and accrued interest income to related companies ,341 80,229 Advance payment from purchase of goods 69,936 64,428 30,867 28,976 Other current assets 1, , Total current assets 300, , , ,849 NON-CURRENT ASSETS Deposits from financial institutions pledged as collateral 18,066 17,231 11,519 11,010 Investments in subsidiaries ,266 42,266 Property, plant and equipment 7,763 7, Assets not used operations 5,350 5, Mining property rights 23,538 27, Deferred tax assets Other non-current assets Total non-current assets 55,161 57,738 53,921 53,416 TOTAL ASSETS 355, , , ,265 41

33 In Thousand USD CURRENT LIABILITIES Bank overdrafts and short-term loans from financial institutions 194, , , ,528 Trade accounts and other payable 13,649 7,580 17,521 20,300 Short-term loans and accrued interest expenses from related company Current portion of long-term loans from financial institutions Current portion of liabilities under hirepurchase agreements Income tax payable 14,156 9,904 6,568 4,043 Other current liabilities Total current liabilities 223, , , ,973 NON-CURRENT LIABILITIES Long-term loans from financial institutions Liabilities under hire-purchase agreements Deferred tax liabilitties 6,045 6, Employee benefit obligations Total non-current liabilities 7,135 8, TOTAL LIABILITIES 230, , , ,043 42

34 In Thousand USD SHAREHOLDERS' EQUITY Common shares Authorized shares - Baht 1 par value 3,027,615,570 common shares Issued and paid-up 2,605,495,683 common shares as at and 2,554,170,445 common shares as at, Baht 1 par value 95,778 84,084 95,778 84,084 Premium on shares 31,176 25,727 31,176 25,727 Discount on shares (59,704) (59,704) (59,704) (59,704) Cost of business combination (4,948) (4,948) - - Total 62,302 45,159 67,250 50,107 Appropriated - legal reserve 3,097 3,097 2,443 2,443 Retained earnings 58,334 45,428 62,004 49,672 Other components of shareholders' equity 1,531 1, Equity attributable to owners of Company 125,264 95, , ,222 Non-controlling interests Total shareholders equity 125,355 95, , ,222 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 355, , , ,265 43

35 The USD functional currency the statements of comprehensive income for the three-month periods ended and 2012 are as follows: In Thousand USD Sales Sales 101,343 61,024 60,405 7,613 Dividend income ,085 Gain on exchanges - - 2, Income from management fee Other incomes , Total Revenues 101,448 61,094 67,733 18,926 Expenses Cost of sales 80,688 47,395 49,026 6,650 Selling expenses 1, , Administrative expenses 1, Management benefit expenses Loss on exchanges Other expenses Finance costs 1, , Total Expenses 86,368 50,627 52,974 7,940 Profit before income tax 15,080 10,468 14,759 10,986 Income tax expense (2,722) (2,520) (2,427) 8 Profit for the periods 12,358 7,947 12,332 10,994 Other comprehensive income Total comprehensive income for the period 12,358 7,947 12,332 10,994 Income for the period attributable to Equity holders of the parent company 12,354 7,946 12,332 10,994 Non - controlling interests ,358 7,947 12,332 10,994 Comprehensive income for the period attributable to 12,354 7,946 12,332 10,994 Equity holders of the parent company Non - controlling interests 12,358 7,947 12,332 10,994 44

36 In Thousand USD Earnings per share Basic earnings - Equity holders of the parent company Diluted earnings - Equity holders of the parent company