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Thai Dev.Cap.Fund (THD)


Thursday 28 June, 2001

Thai Dev.Cap.Fund

Final Results

Thai Development Capital Fund Ld
28 June 2001

                 The Thai Development Capital Fund Limited 
                  Announcement of Results for the 12 month  
                       Period Ending 31st March 2001 

The directors of the Thai Development Capital Fund Limited announce the
results of the company for the twelve month period to, and as at, 31st March

The Net Asset Value at 31st March 2001 was US$1.889 million or US$1.08 per
share. During the period, the portfolio lost value as a result of the
weakening of the Thai Baht, which fell against the US Dollar by 21.3% from
Baht 37.86 at 31 March 2000 to Baht 45.915 at 31st March 2001. The negative
movement in the Thai currency was partially offset by an increase in the
portfolio's value over the period. 
At 31st March 2001, the company's assets comprised the following: 
     Net cash and liquid assets                   US$0.15m 
     Investments, net of provisions               US$1.74m 
     Total net assets                             US$1.89m 
     Issued, paid up shares                       1,754,500 
     Net Assets per share                         US$1.08 per share 
Further to resolutions passed at the company's Annual General Meeting held in
October 2000, the company's investments are being liquidated so that the
capital thus released can be returned to shareholders. The disposal process
is continuing under the control of the directors, but more slowly than
anticipated on account of continuing difficulties in the investment
environment. The process continues. 
Further information is contained in the attached unaudited report at 31st
March 2001. 
Christopher S. Forbes 
28 June 2001 
                              Directors' Review 
The Report and Accounts of the Thai Development Capital Fund Limited, for the
twelve month period to 31st March 2001 are set out below.  
The process of divestment over the past 12 months has been slower than had
been anticipated, largely on account of the continuing generally unfavourable
climate for investment in Thailand. The remaining companies in the portfolio
have performed well, but the market for smaller cap unlisted stakes is
limited, and negotiations held with prospective buyers have been
inconclusive, either because the terms of the purchase offered were thought
to be unreasonable, or the potential buyers wanted to wait longer. For
investments of US$5 million and up, there is a large potential pool of
venture capital investors, and for investments of less than US$500,000, there
are a number of private investors. Unfortunately the company's investments
fall between these two levels, and so identifying likely investors has not
been straightforward.  
This has been set against the backdrop of a Thai economy that has seen only a
slow and gradual improvement. A general election produced a new government
and the consequent changes of ministerial portfolio. The banking sector is
still burdened with non-performing loans, and banks have been reluctant to
provide new credits to the corporate sector since most companies are in
default on earlier loans. The anticipated sale to foreign owners of banks
that the State had taken over did not occur, so the sector has not been
recapitalised to the extent forseen, and has stagnated as a result.
Institutional reform appears to have all but ground to a halt, and the
environment for small and medium sized companies remains difficult.  
During the year, the value of the Baht weakened against the US dollar by 19%,
from 37.86 to 44.915 Baht/US$, while the index of the Stock Exchange of
Thailand fell from a level of 400 to 292, or 27%. The combination of these
two factors resulted in little interest in Thailand from foreign investors,
who were further unsettled by the lack of tangible progress in several
corporate restructuring cases.  
The company's Representative Office in Thailand was formally closed on 19
September 2000. Since then working space was retained in the office of one of
the portfolio companies in Bangkok, and the former Chief Executive has
continued to monitor the investments and to explore opportunities for
disposing of them at prices that reflect their value.  
Total net assets at 31st March 2001 were US$1.889 million or US$1.08 per
share. During the 12-month period to 31st March 2001 as the Thai Baht fell in
value against the US Dollar from 37.86 to 44.915, the Company's portfolio
suffered from the weakening of the local currency, although in overall terms
net assets fell by only 13.5%, from US$2.184 million (US$1.24 per share), to
US$1.889 million (US$1.08 per share). Operating costs of the Company were
kept to a minimum. Provisions against the portfolio investments continue to
be held in the light of economic conditions and the illiquidity of the
A summary of the main investments is as follows. 
Economic Management Ltd. The company has had a successful year despite the
occasional pond loss due to rapid temperature fluctuations. It has expanded
production, and developed a management software programme launched in June.
TDCF has held negotiations with parties interested in buying its stake, and
these are anticipated to conclude before the end of the year.  
Rajthanee Hospital plc. The hospital continues to operate profitably, and the
company again paid dividends during the year. Revenues were helped by the
increased spending of the Government's Social Health Plan. Despite the
company's performance, TDCF has maintained its valuation at a discount to
book value due to the relative illiquidity of the shares.  
Thai Universal Office Products Ltd. The company has continued to make
progress over the past 12 months, with sales increasing in the year to 31
December 2000 by 32.5% over the year to end 1999, after a gain of nearly 30%
over the preceding year. Average margins improved by 10% over the year to
20.7%, while operating costs fell from 22.1% to 18.8% over the year. Since
manufacturing capacity is now full, the company is planing to expand into a
new facility. Discussions continue to be held with potential investors.  
Non-performing investments, which have been fully provided against and for
which some value may be recovered for shareholders in the long term, have
been grouped together pending ultimate divestment. 
A summary of the portfolio is as follows: 
Main investments                    Valuation          % of assets 
Economic Management Co., Ltd.           US$   690,540          36.55% 
Rajthanee Hospital (Public) Co. Ltd     US$   510,965          27.04% 
Thai Universal Office Products Ltd.     US$   404,600          21.41% 
Others                                  US$   131,045           6.94% 
Total investments                       US$ 1,737,150          91.94% 
Bank deposits and cash                  US$   149,216           7.90% 
Interest due & other receivables        US$   126,967           6.72% 
Accrued expenses                        US$  -123,938         - 6.56% 
                   Total net assets     US$ 1,889,395         100.00% 
The Directors 
28 June 2001 
Christopher S. Forbes          D. Graham Lean          Paul H. Smith 
                          STATEMENT OF TOTAL RETURN 
                    For the period ended 31st March 2001 
                            12 months to                     18 months to 
                           31st March 2001                  31 March 2000 
                            (Unaudited)                       (Audited) 
                         Revenue  Capital  Total       Revenue  Capital  Total 
                         $000      $000     $000         $000     $000    $000 

Realised losses                   (2,241) (2,241)               (1,170) (1,170)
Unrealised gain (loss)             2,513   2,513                (1,062) (1,062) 
                                   ------  ------               -------  ------ 
                                     272     272                (2,232) (2,232) 
Exchange differences                (518)   (518)                1,442   1,442 
Dividend income                57      -      57          253        -     253 
Interest income                 8      -       8          312        -     312 
Other income                   47      -      47           30        -      30 
                            -----  -----   -----        -----    -----   ----- 
                              112      -     112          595        -     595 
Director's salary              86      -      86          158        -     158 
Directors fees                  8      -       8           45        -      45 
Directors' travel & 
meeting expenses                7      -       7           21        -      21 
Auditors' fees                 15      -      15           23        -      23 
Legal fees                     19      -      19           31        -      31 
Advisory fees                   -      -       -           28        -      28 
Administration fees            10      -      10           47        -      47 
Representative office expenses 65      -      65          415        -     415 
General & administrative 
expenses                       19      -      19          139        -     139 
                            -----  -----   -----        -----    -----   ----- 
                              229      -     229          908        -     908 
                            -----  -----   -----        -----    -----   ----- 
(Less earlier provisions)     (70)     -     (70)           -        -       -  
TAXATION                      (47) (246)    (293)        (313)    (790) (1,103) 
Taxation                       (2)    -       (2)          (2)       -      (2) 
ACTIVITIES AFTER TAXATION     (49) (246)    (295)        (315)    (790) (1,105) 
SHARE (US$)                 (0.03) (0.14)  (0.17)       (0.18)   (0.45)  (0.63) 
                                BALANCE SHEET 
                                     Unaudited at             Audited at 
US$'000                             31st March 2001          31 March 2000 
Investments                               1,737                 1,938 
Receivables                                 127                   152 
Cash at bank                                149                   322 
                                          -----                ------ 
                                          2,013                 2,412 
Accrued expenses & provisions               124                  228 
                                          -----                ----- 
                                          1,889                2,184 
                                          =====                ===== 

Share capital                               175                 175 
Share premium                             8,246               8,246 
Reserves                                 (6,532)             (6,237) 
                                         ------              ------ 
SHAREHOLDERS' FUNDS                       1,889               2,184 
                                         ======              ====== 
NET ASSET VALUE PER ORDINARY SHARE      US$1.08             US$1.24 
1.  The results for the period ended 31 March 2000 are abridged and are
taken from the audited accounts for that year which were distributed to
shareholders in September 2000. 
2.  The net asset value per ordinary share and the return/loss per share
is calculated based on 1,754,500 shares in issue at each period end and
throughout each period. 
3.  The company has investments in three companies of greater than 20% of
those companies issued share capital. These are associated undertakings for
which it does not equity account, and of which two have been fully provided
against. Dividends from these undertakings are taken to income when declared.
Interest on convertible loans made by the company is recognised on an
accruals basis, net of provisions. 
4.  No interim dividends were declared out of earnings during the period.
A partial return of original capital was made to shareholders in January
5.  The taxation represents Thai withholding tax. The company is resident
in the Cayman Islands for taxation purposes, and is exempt from Cayman Island
tax until the year 2010. 
6.  Copies of the report and accounts are available for inspection at the
company's registered address and at the registration agent, Bermuda
International Securities (UK) Ltd., at Austin Friars House, 2-6 Austin
Friars, London E2N 2HE, United Kingdom. 
Christopher S. Forbes 
D. Graham Lean 
Paul H. Smith 
Secretary and Registered Office 
Bermuda Trust (Cayman) Limited 
3rd Floor, 36c Bermuda House,  
Dr. Roy's Drive, George Town,  
Grand Cayman 
British West Indies 
Administrator and Share Registrar 
Bank of Bermuda (Cayman) Limited  
3rd Floor, 36c Bermuda House,  
Dr. Roy's Drive, George Town,  
Grand Cayman 
British West Indies 

Share Registrar in the United Kingdom

Bermuda International Securities (UK) Limited 
Austin Friars House 
2-6 Austin Friars 
London EC2N 2HE 
United Kingdom 



KPMG, Chartered Accountants

P.O. Box 493, Grand Cayman, Cayman Islands 
British West Indies 


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