Forty aircraft are brought forward from the fiscal year 2000. In fiscal year 2001, the aircraft is increased by two from transferring two A300-600 at a cost of Baht 1,778.45 million. One aircraft, A310-200, with a book value of Baht 239.34 million is sold at a price of Baht 346.44 million in this fiscal year. After deducting overhaul expenses of Baht 72.01 million, the Company has gains on sales of aircraft amounting to Baht 35.09 million. Twenty-one aircraft under capital leases are brought forward from the fiscal year 2000. The Company has received two Boeing 777-300 aircraft in the year 2001. Two aircraft under capital leases have been transferred to “Aircraft Account” as the proprietary right was given to the Company. Also one Boeing 737-400 has been written off due to the caught fire aircraft on March 3, 2001 with a book value of Baht 414.73 million. Revolving aircraft spare parts consist of aircraft engines of GE (GENERAL ELECTRIC), PW (PRATT AND WHITNEY), ROLLS-ROYCE, TEXTRON LYCOMING, and other revolving aircraft spare parts. 3.8 Advance Payments for Aircraft In the fiscal year 2000, the Company paid advance payments for Boeing 777-300 No. 5 and 6 amount of Baht 4,576.87 million. The Company uses these aircraft by signing a temporary operating lease waiting for the loan to pay the rest of aircraft. The Company has signed a financial lease with the loaned institution in the fiscal year 2001. Therefore, these advance payments have been transferred as the cost of aircraft under capital lease. In the fiscal year 2001, the Company pays the advance payments amount of Baht 12,971.77 million for Boeing 747-400 No. 15 and 16 amounted to Baht 6,466.95 million and Baht 6,504.82 million, respectively. The Company will sign a financial lease with the loaned institution but it cannot sign in this fiscal year. Thus, the Company has signed the temporary operating lease because it has already used these aircraft. 3.9 Loan for Investment in Aircraft Spare Parts The Company has signed a technical contract with SR TECHNICS for maintenance of MD-11 amount of USD 2.80 million. The Company receives the interest on this loan at the rate of 6.5% per annum. The balance as at September 30, 2001 and 2000 amounted USD 0.63 million or approximately Baht 28.10 million and USD 0.87 million or approximately Baht 36.69 million, respectively. 3.10 Deferred Income Tax The temporary differences of the net book value and its tax base are as follows: (Unit : Million Baht) Consolidated
The Company
2001
2000
2001
2000
Contribution to staff pension funds
882.57
842.13
882.57
842.13
Allowance for obsoleted inventories
540.82
422.12
540.82
422.12
Allowance for doubtful debts
318.73
228.32
318.51
228.32
39.90
39.90
39.90
39.90
1,782.02
1,532.47
1,781.80
1,532.47
Allowance for impairment in value of securities Total 3.11 Short-term Loans
These are loans in the form of European commercial paper (ECP) for Boeing 747-400 No. 15 and 16 with the total value of USD 180 million or approximately Baht 8,015.53 million. The interest rates are 3.58% and 3.62375%. The Company also borrows short-term loan from THAI Employees’ Saving & Credit Coops Ltd. by issuing the promissory notes amounted to Baht 1,700 million with the interest rate of 5.25%. The total of short-term loans are Baht 9,715.53 million. 3.12 Long-term Loans (Consolidated and the Company) (Unit : Million Baht) Loan Currency JPY
Loan Currency 2001
2000
2001
2000
-
10,000,000,000
-
3,945.94
USD
1,084,151,814
1,254,630,960
48,278.04
53,153.07
THB
2,423,458,900
3,223,458,900
Total Long-term loans Less Amount due within one year Net Long-term Loans
2,423.45
3,223.46
50,701.49
60,322.47
9,794.16
11,968.55
40,907.33
48,353.92
The Company has engaged in contractual long-term loans to purchase 20 aircraft. In the fiscal year 2001, total loans amounted to Baht 50,701.50 million comprises Baht 8,609.47 million from foreign loans with the interest rate of 3.69% - 6.91% per annum and Baht 42,092.03 million from domestic loans with the interest rate of 4.07% - 9.50% per annum.
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