FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of July, 2003
Commission File Number 1-12752
Glassworks of Chile
(Translation of registrant's name into English)
Hendaya 60
Las Condes
Santiago, Chile
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F /X/ Form 40-F / /
Indicate by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(1): ____
FECU (Standardized Quarterly Financial Report)
1. IDENTIFICATION
1.01.05.00 Firm Name
CRISTALERIAS DE CHILE S.A.
1.01.04.00 Company RUT 90331000-6
1.00.01.10 Starting date 1/1/2003
1.00.01.20 Closing date 3/31/2003
1.00.01.30 Type of Currency Chilean Pesos
1.00.01.40 Type of Financial Statements Consolidated
ASSETS
2.0 FINANCIAL STATEMENTS
2.01 BALANCE SHEET
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Consolidated
ASSETS NOTE No. 03-31-03 03-31-02
------ -------- -------- --------
5.11.00.00 TOTAL CURRENT ASSETS 189,995,652 129,104,672
5.11.10.10 Cash 1,690,072 2,108,799
5.11.10.20 Time deposits 41 19,415,156 24,188,103
5.11.10.30 Marketable securities (net) 4 68,519,258 13,809,242
5.11.10.40 Debtors from sales (net) 5 33,071,445 28,277,765
5.11.10.50 Documents receivable (net) 5 3,829,140 4,811,488
5.11.10.60 Sundry debtors (net) 5 1,304,178 843,657
5.11.10.70 Doc. & accts receivable 6 341,341 507,293
related Co.
5.11.10.80 Inventories (net) 7 41,119,400 32,173,737
5.11.10.90 Recoverable taxes 8 1,129,330 2,151,360
5.11.20.10 Prepaid expenses 1,714,071 1,052,945
5.11.20.20 Deferred taxes 8 937,873 1,349,049
5.11.20.30 Other current assets 10 16,924,388 17,831,234
5.11.20.40 Leasing contracts (net) 0 0
5.11.20.50 Leasing assets (net) 0 0
5.12.00.00 TOTAL FIXED ASSETS 12 131,656,508 133,935,352
5.12.10.00 Land 12 12,995,463 13,370,488
5.12.20.00 High rises & infrastructure 12 60,645,609 54,102,747
5.12.30.00 Machinery & equipment 12 123,793,441 131,087,697
5.12.40.00 Other fixed assets 12 17,455,503 13,098,503
5.12.50.00 Positive goodwill from 12 7,675,631 8,566,806
technical revaluation of
fixed assets
5.12.60.00 Depreciation (minus) 12 (90,909,139) (86,290,889)
5.13.00.00 TOTAL OTHER ASSETS 146,130,600 145,037,358
5.13.10.10 Investment in related companies 14 108,429,785 111,386,138
5.13.10.20 Investment in other companies 15 821,513 1,485,663
5.13.10.30 Negative goodwill 16 9,682,180 9,061,628
5.13.10.40 Positive goodwill (minus) 0 0
5.13.10.50 Long-term debtors 5 184,616 218,843
5.13.10.60 Doc. & accts receivable 6 1,504 1,380
related Co.
5.13.10.65 Long-term deferred taxes 8 0 0
5.13.10.70 Intangibles 17 11,723,085 11,630,893
5.13.10.80 Amortization (minus) 17 (1,047,542) (863,954)
5.13.10.90 Other 18 16,335,459 12,116,767
5.13.20.10 Long-term leasing contracts 0 0
(net)
5.10.00.00 TOTAL ASSETS 467,782,760 408,077,382
2
LIABILITIES
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Consolidated
LIABILITIES NOTE No. 03-31-03 03-31-02
----------- ------- -------- --------
5.21.00.00 TOTAL CURRENT LIABILITIES 48,205,054 62,483,039
5.21.10.10 Short-term oblig. Banks & 19 9,827 1,052,539
Fin. Inst.
5.21.10.20 Short-term portion
- Long-term oblig. Banks & 19 4,376,750 25,897,891
Financial Institutions
5.21.10.30 Obligations with the public 0 0
(notes)
5.21.20.40 Short-term portion oblig 22 1,323,579 583,574
with public
5.21.10.50 Long-term oblig. due within 262,515 275,557
1 year
5.21.10.60 Dividends payable 78,554 70,475
5.21.10.70 Accounts payable 19,127,672 10,238,613
5.21.10.80 Notes payable 4,794,597 4,012,533
5.21.10.90 Sundry creditors 2,950,107 557,626
5.21.20.10 Notes & accts payable
related Co. 6 210,952 1,295,224
5.21.20.20 Provisions 23 9,657,719 10,529,408
5.21.20.30 Withholdings 1,766,542 2,075,454
5.21.20.40 Income tax 0 0
5.21.20.50 Earned income 2,534,105 1,736,381
5.21.20.60 Deferred taxes 8 0 0
5.21.20.70 Other current liabilities 20 1,112,135 4,157,764
5.22.00.00 TOTAL LONG-TERM LIABILITIES 145,022,572 88,760,448
5.22.10.00 Oblig with Banks & 21 44,457,024 56,932,831
Financial Inst.
5.22.20.00 Long-term oblig with public 22 88,953,080 20,596,135
(bonds)
5.22.30.00 Long-term notes payable 127,494 38,003
5.22.40.00 Long-term sundry debtors 1,087,933 1,654,216
5.22.50.00 Long-term notes & accts. 6 0 0
payable related companies
5.22.60.00 Long-term provisions 23 6,063,280 7,164,981
5.22.70.00 Long-term deferred taxes 8 4,333,761 2,374,282
5.22.80.00 Other long-term liabilities 0 0
5.23.00.00 MINORITY INTEREST 26 37,468,548 35,937,319
5.24.00.00 TOTAL EQUITY 27 237,086,586 220,896,576
5.24.10.00 Paid-in capital 27 64,749,257 65,252,164
5.24.20.00 Reserve capital revaluation 27 323,746 (261,008)
5.24.30.00 Premium in sale of own
shares 27 27,736,385 27,701,498
5.24.40.00 Other reserves 27 10,040,408 8,314,353
5.24.50.00 Retained earnings (addition 134,236,790 119,889,569
of codes
5.24.51.00 to 5.24.56.00)
5.24.51.00 Reserve future 27 115,487,218 106,277,626
dividends
5.24.52.00 Accrued profits 27 14,428,510 13,556,728
5.24.53.00 Accrued losses 27 0 0
(minus)
5.24.54.00 Profit (loss) 27 4,321,062 182,511
for the year
5.24.55.00 Prov. dividends 27 0 0
(minus)
5.24.56.00 Accr.deficit 27 0 (127,296)
dev. period
5.20.00.00 TOTAL LIABILITIES 467,782,760 408,077,382
3
INCOME STATEMENT
2.02 INCOME STATEMENT
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Consolidated
INCOME STATEMENT NOTE No. 03-31-03 03,31,02
---------------- ------- -------- --------
5.31.11.00 OPERATING INCOME 7,435,106 6,711,094
5.31.11.10 Gross Margin 12,818,820 11,571,979
5.31.11.11 Sales 35,372,089 31,231,841
5.31.11.12 Costs (minus) (22,553,269) (19,659,862)
5.31.11.20 Adm. & sales expenses (5,383,714) (4,860,885)
(minus)
5.31.12.00 NON-OPERATING INCOME (LOSS) (1,051,789) (5,076,769)
5.31.12.10 Interest income 504,339 639,361
5.31.12.20 Income investments 14 549,170 178,032
Rel. Co.
5.31.12.30 Other non-operating 28 137,520 240,285
income
5.31.12.40 Loss investments Rel. 14 (1,649,803) (4,117,198)
Co. (-)
5.31.12.50 Amortization 16 (162,076) (145,391)
neg.goodwill (-)
5.31.12.60 Interest expenses (1,713,063) (1,277,158)
(minus)
5.31.12.70 Other non-operat 28 (536,153) (423,441)
expenses (-)
5.31.12.80 Price level 29 156,293 (161,546)
restatement
5.31.12.90 Exchange differences 30 1,661,984 (9,713)
5.31.10.00 RESULTS BEFORE INCOME TAX 6,383,317 1,634,325
AND EXTRAORDINARY ITEMS
5.31.20.00 INCOME TAX 8 (1,521,340) (1,020,367)
5.31.30.00 EXTRAORDINARY ITEMS 31 0 0
5.31.40.00 PROFIT (LOSS) BEFORE 4,861,977 613,958
MINORITY INTEREST
5.31.50.00 MINORITY INTEREST 26 (540,915) (431,447)
5.31.00.00 NET INCOME (LOSS) 4,321,062 182,511
5.32.00.00 Amortization of positive goodwill 0 0
5.30.00.00 INCOME (LOSS) FOR THE YEAR 4,321,062 182,511
4
DIRECT CASH FLOW STATEMENT
2.03 CASH FLOW STATEMENT
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Consolidated
DIRECT CASH FLOW STATEMENT NOTE No. 03-31-03 03-31-02
-------------------------- ------- -------- --------
5.41.11.00 NET FLOW FROM OP. ACT. 14,616,332 11,583,075
5.41.11.10 Collection from sales debtors 50,076,077 42,372,099
5.31.11.20 Interests received 1,568,504 511,889
5.31.11.30 Dividends & other distributions 54,776 46,558
funds received
5.31.11.40 Other income 388,997 422,102
5.31.11.50 Payments to suppliers & (31,004,020) (26,698,255)
personnel (-)
5.31.11.60 Interest paid (minus) (1,929,562) (781,961)
5.31.11.70 Income tax paid (minus) (1,006,355) (1,038,013)
5.31.11.80 Other expenses (467,154) (294,654)
5.31.11.90 V.A.T. & other taxes (3,064,931) (2,956,690)
5.41.12.00 CASH FLOW FINANCING ACTIVITIES (2,155,759) (2,705,018)
5.41.12.05 Proceeds from share issue 0 17,275
5.41.12.10 Loans received 0 0
5.41.12.15 Obligations with the public 0 0
5.41.12.20 Secured loans from related 35,697 933,716
companies
5.41.12.25 Other loans from related 56 0
companies
5.41.12.30 Other financing resources 0 0
5.41.12.35 Dividends paid (minus) (1,346,555) (1,951,005)
5.41.12.40 Capital distributions (minus) 0 0
5.41.12.45 Repayment of loans (minus) (815,837) (1,131,213)
5.41.12.50 Payment of obligations with the 0 0
public (-)
5.41.12.55 Repayment of secured loans from (29,120) 0
rel Co. (-)
5.41.12.60 Repayment other loans from 0 (573,791)
related Co. (-)
5.41.12.65 Share issue payment (minus) 0 0
5.41.12.70 Payment of issue publ oblig 0 0
(minus)
5.41.12.75 Other financing payments (minus) 0 0
5.41.13.00 CASH FLOW FROM INVESTING ACTIVITIES (4,190,738) 461,093
5.41.13.05 Sale of fixed assets 176,101 8,672
5.41.13.10 Sale of permanent investments 0 5,118,952
5.41.13.15 Sale of other investments 0 0
5.41.13.20 Proceeds secured loans to 0 0
related Comp.
5.41.13.25 Proceeds other loans to related 969,251 33,740
companies
5.41.13.30 Other investment income 1,762,160 1,899,192
5.41.13.35 Incorporation of fixed assets (7,064,599) (4,633,149)
(minus)
5.41.13.40 Capitalized interests payment 0 0
(minus)
5.41.13.45 Permanent Investments (minus) 0 (37,004)
5.41.13.50 Investments in financial (15,291) (1,575,103)
instruments (minus)
5.41.13.55 Other loans to related companies 0 (2,673)
(minus)
5.41.13.60 Other loans to related companies (6,680) (2,059)
(minus)
5.41.13.65 Other distrib of funds on invest (11,680) (349,475)
activities (-)
5.41.00.00 TOTAL NET CASH FLOW FOR THE PERIOD 8,269,835 9,339,150
5.42.20.00 EFFECT OF INFLATION ON CASH & CASH EQUIV. (385,703) 197,327
5.41.00.00 NET CHANGE IN & CASH EQUIVALENT 7,884,132 9,536,477
5.42.00.00 CASH & CASH EQUI AT BEGINNING OF PERIOD 93,762,741 39,079,828
5.43.00.00 CASH & CASH EQUIV BALANCE AT END OF PERIOD 101,646,873 48,616,305
5
INCOME STATEMENT RECONCILIATION
CONCILIATION BETWEEN CASH FLOW GENERATED BY THE
OPERATION'S ACTIVITIES AND THE INCOME STATEMENT FOR THE YEAR
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Consolidated
CASH FLOW - INCOME STATEMENT RECONCILIATION NOTE No. 03-31-03 03-31-02
------------------------------------------- ------- -------- --------
5.50.10.00 Profit (Loss) for the year 4,321,062 182,511
5.50.20.00 Profit (Loss) in sale of assets 5,601 14,032
5.50.20.10 (Profit) Loss in sale of fixed assets 5,601 14,032
5.50.20.20 Profit in sale of investments (minus) 0 0
5.50.20.30 Loss in sale of investments 0 0
5.50.20.40 (Profit) Loss in sale of other assets 0 0
5.50.30.00 Non-cash losses (gains) 6,013,803 8,714,557
5.50.30.05 Depreciation for the year 3,450,664 3,350,735
5.50.30.10 Amortization of intangibles 296,830 299,612
5.50.30.15 Write-offs and provisions 1,857,759 1,060,125
5.50.30.20 Accrued earnings from investments in related (549,170) (178,032)
companies (minus)
5.50.30.25 Accured losses from investments in related Co. 1,649,803 4,117,198
5.50.30.30 Negative goodwill amortization 162,076 145,391
5.50.30.35 Positive goodwill amortization (minus) 0 0
5.50.30.40 Price level restatement (156,293) 161,546
5.50.30.45 Net exchange difference (1,661,984) 9,713
5.50.30.50 Other non-cash credits to results (minus) (8,431) (343,804)
5.50.30.55 Other non-cash debits to results 972,549 92,073
5.50.40.00 Changes in Assets affecting cash flow (incr) decreases (9,206,916) (2,714,920)
5.50.40.10 Debtors from sales 1,789,271 (635,933)
5.50.40.20 Inventory (9,041,682) (2,228,489)
5.50.40.30 Other assets (1,954,505) 149,502
5.50.50.00 Changes in liabilities affecting cash flow increases 12,941,854 4,955,449
(decr)
5.50.50.10 Accounts payable related to results for the 13,270,339 5,804,137
year
5.50.50.20 Interests payable (336,135) 485,774
5.50.50.30 Income tax payable (net) 572,809 (357,471)
5.50.50.40 Other accounts payable related to non-oper 16,844 (716,327)
results
5.50.50.50 VAT and other taxes payable (net) (582,003) (260,664)
5.50.60.00 Profit (Loss) of minority interest 540,928 431,446
5.50.00.00 NET OPERATING CASH FLOW 14,616,332 11,583,075
6
0.1 Registration in the Securities Register
IDENTIFICATION OF THE COMPANY AND REGISTRATION IN THE SECURITIES REGISTER
The company is registered in the Securities Register under No. 061 and it is
supervised by the Securities and Insurance Commission.
The subsidiary S.A. Vina Santa Rita is registered in the Securities Register
under number 390 of the S.V.S. (Securities and Insurance Commission).
7
02. Applied Accounting Criteria
APPLIED ACCOUNTING CRITERIA
a) Accounting Period
These financial statements correspond to the period between January 1 and
March 31 of 2003 and 2002.
b) Preparation basis of financial statements:
These consolidated financial statements as of March 31, 2003 and 2002 have
been prepared on the basis of generally accepted accounting principles and
specific norms issued by the S.V.S.; the former prevailing in case of
discrepancies.
c) Presentation Basis
For comparison purposes, the financial statements and figures included in the
disclosures for the 2002 fiscal year are presented updated according to
non-accounting terms as of March 31, 2003 by 3.8%.
d) Consolidation Basis
The consolidated financial statements include the balances of the following
subsidiaries: Cristalchile Comunicaciones S.A., Cristalchile Inversiones S.A.,
Ciecsa S.A. consolidated, S.A. Vina Santa Rita consolidated, and Constructora
Apoger S.A. consolidated.
Ciecsa consolidated includes the balances of its subsidiary Red Televisiva
Megavision S.A. in which it has a 99.99% stake of its net worth and Simetral
S.A. which it has a 81.5% stake of its net worth.
S.A. Vina Santa Rita consolidated includes the balances of its subsidiaries
Vina Carmen S.A., with a 99.9% stake in its net worth, and Sur Andino S.A.,
with 100% stake.
Constructora Apoger S.A. includes the balances of its subsidiary Inmobiliaria
Monte Azul S.A., in which it has a 99% stake.
Intercompany balances, transactions, debits, and refunds were eliminated in
the consolidation and has being acknowledged the shareholding of the
investments minorities shown in the balance as a minority interest
The subsidiaries included in the consolidation are presented on an attached
chart.
e) Adjustment for Currency Devaluation (Price Level Restatement)
Consolidated financial statements have been restated considering the variation
in the purchasing power of the currency which occurred in the 2003 fiscal
year, which was 0.5% (-0.4% in 2002).
8
f) Conversion Basis
Balances in foreign currency and indexed currency units have been converted to
pesos at the indicated parities:
2002 2002
Ch$ Ch$
---------- ---------
U.S. Dollar 731.56 655.90
Pound Sterling 1,156.25 934.86
Swedish Crown 540.65 389.79
EURO 797.34 570.94
Unidad de Fomento 16,783.60 16,197.66
g) Marketable Securities and Time Deposits
Transactions in short-term fixed income instruments (PRC) are shown at the
return value of the investment, which does not exceed the market value as of
March 31, 2003.
Investments in shares are presented as the lower of the corrected cost
and market value.
Time deposits are shown at the value of the investment, plus adjustments and
interest accrued as of the date of the fiscal year.
Investments carried out by the parent company in Celulosa Arauco bonds are
registered at the par value, without adjusting to the market value because
there is the intention of keeping them until their long term due date.
h) Inventory
Inventory of finished products has been valued as of March 31, 2003 and 2002
at the direct production cost, duly updated, and raw materials and materials
at the cost of the last purchase or its corrected cost. Those valuations do
not exceed the net liquidation value.
Inventory of foreign television programs to be exhibited are valued at the
purchase cost at the exchange rate in effect at the closing of the fiscal
year. Local programs are valued according to the terms of the respective
contracts.
Inventory at the closing of each fiscal year represents the value of the films
and videos contracted and the proportion of repeats that are pending
exhibition. The actual cost of the programs is charged to results as they are
shown.
i) Bad Debts (Non-collectable)
The parent company and subsidiaries have made provision for bad debts that is
deducted from debtors for sales and documents receivable. The criterion
adopted to estimate them is the age of the balances.
9
j) Fixed Assets
The property in fixed assets is shown at the purchase cost plus legal and
regulatory revaluations accumulated until March 31, 2003 and 2002.
k) Fixed Assets Depreciation
Depreciation of these goods is calculated on updated values, according to the
straight-line depreciation system, considering the estimated useful life of
the goods.
l) Assets in Leasing
None.
m) Sales Transactions with Leaseback
None.
n) Intangibles
The corrected purchase value of trademarks as well as TV channel 9 frequency
are presented as intangibles. Its amortization period is 40 years. In addition
the subsidiary S.A. Vina Santa Rita includes the costs for trademark
registration, which are amortized in a period of their renewal.
o) Investments in Related Companies
Investments in stocks and rights in related companies have been valued
according to the percentage of the holding that corresponds to the Company in
the equity of its affiliates and subsidiaries (V.P.P.), according to
procedures established for these purposes by circular 368 of the Securities
and Insurance Commission. Investments abroad have been valued according to the
provisions of Technical Bulletin No. 64 of the Accountants Association.
p) Goodwill Amortization
Goodwill amortization resulted from comparing the price paid for the
investment with the proportional equity value (VPP) that corresponds to the
investment in the company's equity.
Amortizations of these values are carried out in a period of twenty years.
As of March 31, 2003 and 2002 there is no positive goodwill.
q) Operations with repurchase and resale agreement
Financial instruments acquired with a resale agreement are shown at their
purchase value plus interest and adjustments accrued at the closing of the
fiscal year, and they are classified in Other Current Assets, in the terms
established in Circular No. 768 of the Securities and Insurance Commission.
10
r) Obligations with public
Obligations for bonds issued are shown at their face value plus adjustments
and interest accrued at the closing of each fiscal year. The negative goodwill
obtained compared to par value is amortized proportionally to payment or
redemption of the capital installments of those bonds and the expenses for the
placement of long-term bonds.
s) Deferred Taxes and Income Tax
The parent company and its subsidiaries has complied with deferred taxes, in
accounting terms, as established in Technical Bulletin No. 60 and 71 of The
Accountants Association and the norms indicated in circular 1466 of the S.V.S.
Income tax is recorded in the accounting on the basis of the calculation of
net taxable income determined according to norms established in the Income Tax
Law.
t) Severance payment
The parent company has established a reserve for all of the personnel's
severance payment, according to the union contracts signed with their workers.
This reserve is shown at the present value of the obligation.
u) Sales
The consolidated companies recognize operating income on an accrued basis
according to generally accepted accounting principles.
v) Derivative Contracts
The parent company and its subsidiaries Ciecsa S.A. and S.A. Vina Santa Rita
maintain Future contracts in foreign currency recorded as established in
Technical Bulletin 57 of the Accountants Association of Chile.
w) Computer Software
The parent company and S.A. Vina Santa Rita develop computer software with
their own resources and they also acquires computer packages from third
parties. Disbursements due to their own development are charged to results as
they are generated. Computer packages are recorded in Fixed Assets and
amortized in 36 months by the parent company and in 48 months by the
subsidiary S.A. Vina Santa Rita.
x) Research and development expenses
The companies do not show any expenses in this item.
11
y) Cash flow statement:
According to current regulations of the Securities and Insurance Commission
and the Accountants Association of Chile, in preparing the cash flow
statement, the Company has considered time deposits and deposits with
maturities under 90 days as cash.
Such cash flows related to the Company's line of business, interest paid,
interest income received, dividends received, and all such that is not defined
as investment or Financing is included under the heading "Flow Originating in
Activities of the Operation."
Disbursements originating in time deposits and deposits with maturities over
90 days have been classified in the item "Investments in Financial
Instruments."
12
CRISTALERIAS DE CHILE S.A.
NOTE 2 - APPLIED ACCOUNTING CRITERIA
COMPANIES INCLUDED IN THE CONSOLIDATED REPORT
Percentage of Shareholding
--------------------------
03.31.2003 03.31.2002
------------------------------------ -----------
R.U.T. Ccompany Name Direct Indirect Total Total
-------- ------------ --------- ---------- -------- -----------
96.721.580-5 Cristalchile Comunicaciones S.A. 99.9980 0.0000 99.9980 99.9980
96.767.580-6 Constructora Apoger S.A. 80.0000 0.0000 80.0000 80.0000
96.608.270-4 Ciecsa S.A. 98.2737 0.0000 98.2737 98.2102
86.547.900-K S.A. Vina Santa Rita 54.0970 0.0000 54.0970 54.0970
96.972.440-5 Cristalchile Inversiones S.A. 99.9900 0.0100 100.0000 100.0000
13
03. Accounting Changes
As of March 31, 2003 and 2002, there have not been any changes in the
accounting criteria applied that affect the consolidated financial statements.
14
04. Marketable Securities
As of March 31, 2003, this item includes the following investments:
a) Th Ch$ 55,388,004 in bonds and fixed rate instruments, wich correspond
mainly to investments in state bonds and of financial institutions of
USA, Germany and Holland, collateralized bonds of public companies of USA
(with guarantee from accounts receivable) and American mortgage bonds
with state guarantee.
b) Th Ch$ 9,301,239 in investment funds quotas called BBH U.S Money Market
Portfolio.
c) Shares for Th Ch$ 3,830,015.
As of March 31, 2002, Th Ch$ 3,388,219 are included and correspond to
investment in shares, Th Ch$ 10,366,343 in fixed rate mutual funds and Th Ch$
54,680 for accrued interest of long-term bonds
CRISTALERIAS DE CHILE S.A.
NOTE 4 -MARKETABLE SECURITIES
BALANCE COMPOSITION
Type of Security Book Value
---------------- ----------
03-31-2003 03-31-2002
---------- ----------
Shares 3,830,015 3,388,219
Bonds 55,388,004 54,680
Shares in mutual funds 0 10,366,343
Shares in investment funds 9,301,239 0
Public tender notes 0 0
Mortgage bonds 0 0
Total Marketable Securities 68,519,258 13,809,242
15
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES
SHARES
Unit Market
R.U.T. Company Name Number of Participation Market Investment Corrected
Shares Percentage Value Value Cost
----- ------------ --------- ------------- ------ ---------- ---------
96.512.200-1 Bodegas y Vinedos Santa Emiliana S.A. 60,440,462 9.4970 96 5,802,284 3,830,015
Value Investment Portfolio 5,802,284 3,830,015
Adjustment Provision 0
Book value, Investment Portfolio 3,830,015
16
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES
FIXED RATE INSTRUMENTS
Book Value
---------------------
Par Market
Type of Security Value Rate % Value Provision
---------------- ---------- ---------------------- ----------- ---------
Bonds of Financial Institutions in USA, Germany and Holland 15,492,461 15,492,461 1.28 15,911,401 0
US Treasury Bonds 29,005,950 29,005,950 1.17 29,019,522 0
US Mortgage Bonds, with state guarantee 4,807,804 4,807,804 1.15 4,807,804 0
Time Deposit 201,179 201,179 0.665 201,179 0
Cash Balance 22,610 22,610 0.00 22,610 0
Call Deposit 5,858,000 5,858,000 1.28 5,858,000 0
TOTAL 55,388,004 55,388,004 55,820,516 -
Note:
(1) The investements have been made in U.S. Dollar (79.7%) and EUROS (20.3%) and are in custody abroad.
(2) These investments can be recovered with 48 hours notice.
17
05. Short-Term and Long-Term Debt
As of March 31, 2003 and 2002, there are balances short-term debt in the
amount of Ch$33,071,445 (Ch$28,277,765 in 2002).
The bad debt reserve of Ch$649,839 in 2003 (Ch$516,495 in 2002) is shown
deducting the balances of Debt from Sales and Accounts receivable.
The balances of Short-term Debt are shown net of Customer Advanced
Payments.
Also, there is a balance of Ch$184,616 in Long Term Debt in 2003 (Ch$218,843
in 2002).
18
CRISTALERIAS DE CHILE S.A.
NOTE 5 -SHORT AND LONG TERM DEBT
Short and Long-term debtors
Current
-----------------------------------------------------------------------------------------
Up to 90 days > 90 up to 1 year Total Current (net)
---------------------- ----------------------- -----------------------
Item 03-31-2003 03-31-2002 03-31-2003 03-31-2002 Subtotal 03-31-2003 03-31-2002
---- ---------- --------- ---------- ---------- ---------- ---------- ----------
Debts from Sales 31,875,185 27,388,450 1,644,088 1,285,717 33,519,273 33,071,445 28,277,765
Estimate of bad debtors - - - - 447,828 - -
Documents receivable 3,958,138 4,893,762 73,013 37,820 4,031,151 3,829,140 4,811,488
Estimate of bad debtors - - - - - - -
Misc. Debtors 1,255,253 817,823 48,925 25,835 1,304,178 1,304,178 843,657
Estimate of bad debtors - - - - - - -
Long-Term
-------------------------
03-31-2003 03-31-2002
---------- ----------
Debts from Sales 0 0
Estimate of bad debtors - -
Documents receivable 0 0
Estimate of bad debtors - -
Misc. Debtors 184,616 218,843
Estimate of bad debtors - -
Total Long-Term Debtors 184,616 218,843
19
06. Balances and Transactions with related entities
Short-term accounts receivable as of March 31, 2003 that total Th Ch$
341,341 (Th Ch$ 507,293 in 2002) corresponding mainly to a loan granted by the
subsidiary Ciecsa to Editorial Zig Zag for Th Ch$ 161,146 including interests,
with maturity on 06-30-2003 at an annual interest rate of 1% and advertising
sold by Red Televisiva Megavision S.A. to Metropolis-Intercom for Th $ 88,565.
The balance corresponds to invoicing receivable for Th Ch$ 91,630.
Short-term accounts payable totaling Th Ch$ 210,952 in 2003 (Th Ch$
1,295,224 in 2002) corresponds to commercial transactions under 90 days for Th
Ch $ 130,227, and dividends payable to Majority shareholders for Th Ch$
80,725.
In 2003 there is a long-term receivable corresponding to invoices totaling Ch
Th$ 1,504 of Long-term Accounts Receivable (Ch Th$ 1,380 in 2002).
20
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCE AND TRANSACTIONS WITH RELATED COMPANIES
DOCUMENTS AND ACCOUNTS RECEIVABLE
Short Term Long Term
R.U.T. Company 03-31-2003 03-31-2002 03-31-2003 03-31-2002
-------- ---------- ---------- ---------- ---------- ----------
89.150.900-6 Vina Los Vascos S.A. 78,594 182,895 0 0
0-E Rayen Cura SAIC 0 142 0 0
83.032.100-4 Serv. Y Consultorias Hendaya S.A. 253 0 0 0
90.684.000-6 Editorial Zig-Zag S.A. 161,146 285,075 0 0
86.881.400-4 Envases CMF S.A. 5,085 61 0 0
90.320.000-6 Cia. Electro Metalurgica S.A. 108 89 0 0
96.539.380-3 Ediciones Financieras S.A. 2,751 57 0 0
79.753.810-8 Claro y Cia. 125 142 0 0
96.787.775-1 Metropolis Intercom S.A. 78,646 36,169 0 0
90.160.000-7 Sudamericana de Vapores S.A. 591 1,975 0 0
77658870-9 Marketing Meter Ltda. 0 688 0 0
96793770-3 Ediciones Chiloe S.A. 0 0 1,504 1,380
86963200-7 Forus S.A. 14,042 0 0 0
Total 341,341 507,293 1,504 1,380
21
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCES AND TRANSACTIONS WITH RELATED COMPANIES
DOCUMENTS AND ACCOUNTS PAYABLE
Short Term Long Term
R.U.T. Company 03-31-03 03-31-2002 03-31-03 03-31-2002
-------- ---------- ---------- ---------- ---------- ----------
90.320.000-6 Cia. Electro Metalurgica S.A. 11,599 0 0 0
0-E Rayen Cura S.A.I.C 11,715 0 0 0
89.150.900-6 Vina Los Vascos S.A. 1,109 16,494 0 0
79.753.810-8 Claro y Cia. 27,639 0 0 0
96.539.380-3 Ediciones Financieras S.A. 11,281 6,995 0 0
86.881.400-4 Envases CMF S.A. 134,718 16,770 0 0
78.619.370-2 Cordillera Comunicaciones Ltda. 0 208,794 0 0
90.160.000-7 Cia. Sudamericana de Vapores S.A. 12,500 6,987 0 0
96.787.775-1 Metropolis Intercom S.A. 0 14,180 0 0
0-E Televisa Internacional S.A. de C.V. 0 1,021,236 0 0
86963200-7 Forus S.A. 0 2,493 0 0
96793770-3 Ediciones Chiloe S.A. 0 183 0 0
77.658.870-9 Marketing Meter Ltda. 391 1,092 0 0
Total 210,952 1,295,224 0 0
22
CRISTALERIAS DE CHILE S.A. NOTE 6 - BALANCES AND TRANSACTIONS WITH
RELATED COMPANIES
TRANSACTIONS
03-31-2003
--------------------------
Company R.U.T. Relationship Transaction Description Amount Effect on Result
------- ------ ------------ ----------------------- ------ ----------------
Envases CMF S.A. 86.881.400-4 Indirect affiliate Materials purchased 115,018 0
- Products sold 92 30
- Other sales 146 0
Serv. Y Consultorias Hendaya S.A. 83.032.100-4 Majority shareholder Services received 320,898 -320,898
- Dividends paid 119,267 0
- Services supplied 5,034 5,034
Cia. Electro Metalurgica S.A. 90.320.000-6 Majority shareholder Dividends paid 457,380 0
- Other sales 92 0
- Materials purchased 1,800 0
Claro y Cia. 79.753.810-8 With the president Advice received 15,474 -15,474
- Products sold 108 36
Navarino S.A. 96.566.900-0 Same Parent Services supplied 2,506 2,506
Quemchi S.A. 96.640.360-8 Same Parent Services rendered 3,135 3,135
Rayen Cura S.A.I.C. 0-E Indirect affiliate Direct sales 37,895 0
Cia. Sud-Americana de Vapores S.A. 90.160.000-7 Same Parent Freight services 125,723 -12,223
- Products sold 903 299
- Other sales 659 0
- Advertising hired 0 0
Ediciones Financieras S.A. 96.793.77-3 Indirect affiliate Services received 10,297 -10,297
Products sold 2,379 788
Services purchased 64 64
Inversiones Bayona S.A. 86.755.600-1 Majority shareholder Dividends paid 124,163 0
Vina Los Vascos S.A. 89.150.900-6 Indirect affiliate Direct sales 141,924 40,130
Materials purchased 7,531 0
Metropolis Intercom S.A. 96.787.750-6 Indirect affiliate Advertising hired 67,950 58,722
- Products sold 3,518 1,166
Forus S.A. 86.963.200-7 Affiliate Advertising hired 11,900 11,900
- Services purchased 0 0
Televisa Internacional S.A.C.V 0-E Affiliate Materials purchased 0 0
03-31-2002
--------------------------
Company R.U.T. Relationship Transaction Description Amount Effect on Result
------- ------ ------------ ----------------------- ------ ----------------
Envases CMF S.A. 86.881.400-4 Indirect affiliate Materials purchased 77 -77
- Products sold 0 0
- Other sales 0 0
Serv. Y Consultorias Hendaya S.A. 83.032.100-4 Majority shareholder Services received 273,955 -273,955
- Dividends paid 176,855 0
- Services supplied 5,015 5,015
Cia. Electro Metalurgica S.A. 90.320.000-6 Majority shareholder Dividends paid 678,229 0
- Other sales 0 0
- Materials purchased 0 0
Claro y Cia. 79.753.810-8 With the president Advice received 17,467 -17,467
- Products sold 0 0
Navarino S.A. 96.566.900-0 Same Parent Services supplied 2,528 2,528
Quemchi S.A. 96.640.360-8 Same Parent Services rendered 2,528 2,528
Rayen Cura S.A.I.C. 0-E Indirect affiliate Direct sales 0 0
Cia. Sud-Americana de Vapores S.A. 90.160.000-7 Same Parent Freight services 12,731 0
- Products sold 0 0
- Other sales 0 0
- Advertising hired 27,680 27,680
Ediciones Financieras S.A. 96.793.77-3 Indirect affiliate Services received 3,254 -3,254
Products sold 0 0
Services purchased 0 0
Inversiones Bayona S.A. 86.755.600-1 Majority shareholder Dividends paid 184,116 0
Vina Los Vascos S.A. 89.150.900-6 Indirect affiliate Direct sales 172,238 44,873
Materials purchased 12,217 0
Metropolis Intercom S.A. 96.787.750-6 Indirect affiliate Advertising hired 62,968 62,968
- Products sold 0 0
Forus S.A. 86.963.200-7 Affiliate Advertising hired 19,411 19,411
- Services purchased 2,113 -2,113
Televisa Internacional S.A.C.V 0-E Affiliate Materials purchased 910,602 910,602
23
07. Inventory
An itemized list of inventory, valued according to note 2 h), is presented in
the following chart:
CRISTALERIAS DE CHILE S.A.
NOTE 7 - INVENTORY (Consolidated)
2003 2002
Th Ch$ Th Ch$
------- -------
Finished Products
-----------------
* Cristalerias de Chile S.A. 2,350,612 2,589,531
* S.A. Vina Santa Rita 7,854,776 6,968,198
Subtotal Finished Products 10,205,388 9,557,729
Raw Materials and Fuel
----------------------
* Cristalerias de Chile S.A. 1,611,679 2,067,372
* S.A. Vina Santa Rita 21,876,798 14,637,680
Subtotal Raw Materials and Fuel 23,488,477 16,705,052
Supply Materials and Parts
--------------------------
* Cristalerias de Chile S.A. 1,049,208 1,262,998
* S.A. Vina Santa Rita 1,881,918 1,564,990
Subtotal Supply Materials and Parts 2,931,126 2,827,988
Materials in Transit 627,189 360,640
--------------------
Red Televisiva Megavision S.A. (CIECSA S.A.)
--------------------------------------------
Foreign taped to be broadcasted 3,230,256 2,581,147
Domestic programming to be broadcasted 636,964 141,181
3,867,220 2,722,328
Total 41,119,400 32,173,737
24
08. Deferred taxes and income taxes
A) DEFERRED TAXES.
Accumulated balances of deferred taxes for temporary differences, and their
composition in the income tax account for effects of fiscal year results and
recognition of deferred taxes, are presented on the attached charts.
Amortization periods of deferred taxes have been estimated on average at 1.8
years for Short-Term Assets, 4.1 years for Long-Term Assets, and 14.4 years
for Long-term Liabilities.
B) INCOME TAX
The parent company and its subsidiary S.A. Vina Santa Rita, made tax
provisions for 16.5% of taxable income in 2003 (16% in 2002) subject to the
First Category and 35% for the Single Income Tax under Art. 21, for the 2003
and 2002 fiscal years.
The other consolidated subsidiaries maintain negative taxable incomes and
therefore have not provisioned for this concept.
Credits against taxes are shown deducting the payables obligation.
The itemized list is the following:
2003 2002
Th Ch$ Th Ch$
--------- ---------
Fiscal year income tax provision (1,115,303) (718,174)
Single tax reserve (2,646) (3,415)
--------- ---------
SUB TOTAL (1,117,949) (721,589)
Credits:
Monthly provisional payments 967,800 1,068,986
Training expenditures 13,191 59,622
Fixed Assets credit 13,167 45,864
Advance Earnings Tax 45,940 32,093
--------- ---------
CREDIT SUB TOTAL 1,040,098 1,206,565
Income Tax (77,851) 484,976
Income Tax to be Recovered 0 0
Other Taxes to be recovered:
VAT Fiscal Credit 593,618 640,699
Income tax credit, previous year 613,563 1,025,675
TOTAL TAXES TO BE --------- ---------
RECOVERED 1,129,330 2,151,360
25
C) TAXABLE PROFIT FUND
The parent company registered the following balance of profits to be
distributed:
2003 2002
Th Ch$ Th Ch$
----------- -----------
Generated as of 12.31.1983:
Profits adjustment 1,909,034 1,909,034
Generated since 01.01.1984:
Without Credit 1,072,115 2,673,752
With 10% First Category Credit 22,694 82,075
With 15% First category Credit 92,502,240 100,864,409
With 15% Additional rate Credit 722 740
With 16% First Category Credit 16,906,651 3,687,712
With 16.5% First Category Credit 5,950,023 0
----------- -----------
SUB-TOTAL TAX PROFITS 116,454,445 107,308,688
Non-income revenues 6,825,087 6,821,960
----------- -----------
TOTAL RETAINED EARNINGS 123,279,532 114,130,648
26
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
DEFERRED TAXES
03-31-2003
-----------------------------------------------------------
Asset Deferred Tax Liability Deferred Tax
--------------------------- ------------------------
Item Short term Long Term Short Term Long Term
---- ---------- --------- ---------- ---------
Temporary Differences
Uncollectable accounts Provision 109,758 0 0 0
Anticipated Income 430,798 0 0 0
Vacation provision 116,444 0 0 0
Intangible Amortization 0 0 0 0
Leased assets 0 0 0 0
Manufacturing expenses 0 0 0 0
Depreciations fixed assets 0 14,781 0 8,206,606
Severance payments 2,131 148,063 0 0
Other events 0 0 0 0
Packaging reserve 172,496 0 0 0
Furnace repair provision 193,105 354,571 0 0
Stock obsolescence provision 35,356 0 0 0
Spare parts obsolescence provision 97,163 0 0 0
Lower value sale of bonds 67,740 0 53,357 810,398
Deferred customs duties 2,305 592 0 83,578
Non realized profits 124,257 61,912 0 0
Other provisions 63,435 0 14,644 0
Direct labor 21,502 0 0 0
Amortization commercial brands 33,175 0 0 0
Tax losses 0 4,639,753 0 0
Expenses assetted 0 0 240,003 0
Prepaid expenses 0 0 25,705 0
Banking reserve 0 0 0 46,882
Fixed assets, molds 0 0 0 276,739
Machinery repair provision 0 0 0 0
Others
Supplementary accounts-net of amort. 198,083 3,950,255 0 3,821,025
Valuation provision 0 0
Total 1,271,582 1,269,417 333,709 5,603,178
03-31-2002
-----------------------------------------------------------
Asset Deferred Tax Liability Deferred Tax
--------------------------- ------------------------
Item Short term Long Term Short Term Long Term
---- ---------- --------- ---------- ---------
Temporary Differences
Uncollectable accounts Provision 96,339 0 0 0
Anticipated Income 295,184 0 0 0
Vacation provision 105,810 0 0 0
Intangible Amortization 0 0 0 0
Leased assets 0 0 0 0
Manufacturing expenses 0 0 250,436 0
Depreciations fixed assets 0 5,780 0 7,647,986
Severance payments 1,790 34,004 0 0
Other events 118,054 98,555 0 0
Packaging reserve 220,841 0 0 0
Furnace repair provision 185,184 565,327 0 0
Stock obsolescence provision 43,157 0 0 0
Spare parts obsolescence provision 96,996 0 0 0
Lower value sale of bonds 43,023 0 0 228,547
Deferred customs duties 25,676 0 0 0
Non realized profits 70,936 1,612 0 0
Other provisions 0 0 0 0
Direct labor 9,000 0 0 0
Amortization commercial brands 228,198 0 0 0
Tax losses 0 5,221,201 0 0
Expenses assetted 0 0 0 0
Prepaid expenses 0 0 35,957 0
Banking reserve 11,878 0 0 0
Fixed assets, molds 0 0 0 272,382
Machinery repair provision 169,998 0 0 0
Others
Supplementary accounts-net of amort. 241,066 4,688,549 154,445 4,536,703
Valuation provision 0 0
Total 1,480,998 1,237,930 131,948 3,612,212
27
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
INCOME TAX
03/31/2003 03/31/2002
Th Ch$ Th Ch$
---------- ----------
Current tax expense (tax provision) -1,117,949 -720,145
Adjustment tax expense (previous year) 0 0
Effects from assets or liabilities, deferred
year's tax -281,339 -320,946
Tax benefit from tax losses 110 0
Effect of amortiz. of supplementary accounts for
deferred assets and liabilities -127,387 20,724
Effect on assets or liabilities from deferred tax
from changes in assessment provision 0 0
Other charges or credits to the account 5,225 0
Total -1,521,340 -1,020,367
28
09. Short and Long-term Leasing Contracts and Assets for Leasing
(note required for leasing companies defined in circular no.939, 1990)
As of March 31, 2003, ther are no balances included for this concept.
29
10. Other current assets
As of March 31, 2003, this item includes investments in:
a) Financial instruments with resale agreements for Th Ch$ 16,447,554
valued according to note 2 q).
b) Deferred expenses for bond placement for Th Ch$ 362,238
c) Bank reserve for Th Ch$28,452.
d) Positive balance for Th Ch$ 86,144 for Future Contracts in foreign
currency.
As of March 31, 2002, there were investments in financial instruments with
resale agreements for Th Ch$ 17,762,621, valued according to note 2 q),
deferre expenses for bonds placement for Th Ch$ 39,876 and Th Ch$ 28,737 for
bank reserve.
30
11. Information on operations involving purchase agreements, sales agreements,
sale with repurchase agreement, and purchase with resale agreement of titles
or real estate securities
Information about these transactions is presented in attached charts.
31
NOTE 11 - INFORMATION ON OPERATIONS OF PURCHASE COMMITMENT, SALE COMMITMENT,
SALE WITH REPURCHASE AGREEMENTS AND PURCHASE WITH RESALE AGREEMENTS OF TITLES
AND REAL ESTATE SECURITIES
SALE WITH REPURCHASE (VRC) AND PURCHASE WITH RESALE (CRV) COMMITMENT OPERATIONS
Dates
----- Original Price Final
Code Start End Counterpart Currency Set Rate Value
---- ----- --- ----------- -------- ----- ---- -----
CRV 03.26.2003 04.01.2003 Citibank N.A. Pesos 1,000,000 0.21 1,000,420
CRV 03.27.2003 04.03.2003 Banco Chile Pesos 591,500 0.20 591,776
CRV 03.27.2003 04.04.2003 Banco Santander Pesos 576,500 0.22 576,838
CRV 03.31.2003 04.04.2003 Banco Santander Pesos 300,000 0.25 300,100
CRV 03.31.2003 04.07.2003 Banco Chile Pesos 752,000 0.20 752,351
CRV 01.06.2003 04.07.2003 BBVA - BHIF Dollars 2,467,551 2.04 2,500,304
CRV 03.28.2003 04.25.2003 BankBoston Pesos 363,795 0.23 364,576
CRV 03.28.2003 04.25.2003 Banco de Credito e Inversiones Pesos 3,000,000 0.23 3,005,750
CRV 03.31.2003 04.04.2003 BankBoston Pesos 750,000 0.33 750,330
CRV 03.31.2003 04.04.2003 BankBoston Pesos 70,000 0.33 70,031
CRV 03.14.2003 04.25.2003 Banco Chile Dollars 1,795,416 1.73 1,759,288
CRV 03.31.2003 04.25.2003 Banco Chile Dollars 247,302 1.50 248,989
CRV 03.31.2003 04.04.2003 Banco Chile Pesos 50,000 0.29 50,019
CRV 03.31.2003 04.04.2003 Banco Chile Pesos 18,000 0.29 18,007
CRV 03.03.2003 04.07.2003 Banco Chile Dollars 750,280 1.77 732,819
CRV 03.07.2003 04.07.2003 Banco Chile Dollars 622,405 1.74 604,441
CRV 03.14.2003 04.25.2003 Banco Chile Dollars 299,236 1.73 293,215
CRV 03.31.2003 04.25.2003 Banco Chile Dollars 39,277 1.50 39,545
CRV 03.31.2003 04.25.2003 Banco Chile Dollars 189,114 1.50 190,404
CRV 02.24.2003 07.18.2003 Scotiabank Pesos 300,000 0.25 303,600
CRV 02.28.2003 06.30.2003 Scotiabank Pesos 100,000 0.25 101,017
CRV 03.26.2003 04.04.2003 Scotiabank Pesos 250,000 0.28 250,210
CRV 03.17.2003 04.09.2003 Banco Santander Pesos 300,000 0.21 300,483
CRV 03.20.2003 04.04.2003 Banco Santander Pesos 300,000 0.22 300,770
CRV 07.11.2002 04.25.2003 Scotiabank Dollars 286,800 1.80 295,097
CRV 11.14.2002 05.23.2003 Scotiabank Dollars 285,415 1.75 295,327
CRV 11.25.2002 06.20.2003 Scotiabank Dollars 212,400 1.85 221,803
CRV 02.12.2003 07.25.2003 Scotiabank Dollars 373,700 1.60 368,430
CRV 03.31.2003 04.25.2003 Scotiabank Dollars 145,400 1.50 147
Dates
----- Original
Code Start End Counterpart Currency Instrument Market Value
---- ----- --- ----------- -------- ---------- ------------
CRV 03.26.2003 04.01.2003 Citibank N.A. Pesos PDBC 1,000,350
CRV 03.27.2003 04.03.2003 Banco Chile Pesos PDBC-PRD 591,658
CRV 03.27.2003 04.04.2003 Banco Santander Pesos PRD-PCD 576,669
CRV 03.31.2003 04.04.2003 Banco Santander Pesos PRD-PCD 300,000
CRV 03.31.2003 04.07.2003 Banco Chile Pesos PDBC-PRD 752,000
CRV 01.06.2003 04.07.2003 BBVA - BHIF Dollars PRD-ZERO 2,534,025
CRV 03.28.2003 04.25.2003 BankBoston Pesos PRD 363,879
CRV 03.28.2003 04.25.2003 Banco de Credito e Inversiones Pesos PRD 3,000,690
CRV 03.31.2003 04.04.2003 BankBoston Pesos PRD 750,000
CRV 03.31.2003 04.04.2003 BankBoston Pesos PRD 70,000
CRV 03.14.2003 04.25.2003 Banco Chile Dollars PRD 1,757,178
CRV 03.31.2003 04.25.2003 Banco Chile Dollars PRD 248,730
CRV 03.31.2003 04.04.2003 Banco Chile Pesos PRD 50,000
CRV 03.31.2003 04.04.2003 Banco Chile Pesos PRD 18,000
CRV 03.03.2003 04.07.2003 Banco Chile Dollars PRD 732,567
CRV 03.07.2003 04.07.2003 Banco Chile Dollars PRD 604,237
CRV 03.14.2003 04.25.2003 Banco Chile Dollars PRD 292,863
CRV 03.31.2003 04.25.2003 Banco Chile Dollars PRD 39,504
CRV 03.31.2003 04.25.2003 Banco Chile Dollars PRD 190,207
CRV 02.24.2003 07.18.2003 Scotiabank Pesos PRBC 300,900
CRV 02.28.2003 06.30.2003 Scotiabank Pesos PRBC 100,267
CRV 03.26.2003 04.04.2003 Scotiabank Pesos PRBC 250,140
CRV 03.17.2003 04.09.2003 Banco Santander Pesos PRBC 300,315
CRV 03.20.2003 04.04.2003 Banco Santander Pesos PRBC 300,264
CRV 07.11.2002 04.25.2003 Scotiabank Dollars PRBC 294,746
CRV 11.14.2002 05.23.2003 Scotiabank Dollars PRBC 294,587
CRV 11.25.2002 06.20.2003 Scotiabank Dollars PRBC 220,900
CRV 02.12.2003 07.25.2003 Scotiabank Dollars PRBC 366,560
CRV 03.31.2003 04.25.2003 Scotiabank Dollars PRBC 146,318
32
12. Fixed Assets
Fixed Assets:
CRISTALERIAS DE CHILE S.A.
The Fixed Assets are shown at purchase cost plus the legal and regulatory
revaluations accumulated as of March 31, 2003 and 2002.
The items that make up the Company's fixed assets as of March 31, 2003 and
2002 include mainly Land, Industrial Constructions, Infrastructure Works,
Machinery, and Equipment distributed between the Padre Hurtado plant and other
minor.
During year 2002 the Company effected an adjustment in the value of fixed
assets that were charged off with their respective accumulated depreciation.
Technical Reappraisal and Adjustment of Accounting Values:
The Company carried out a technical reappraisal of its fixed assets in 1979.
In June 1986 it also adjusted the assets. Both operations were carried out
according to the provisions established in Circular Letters No. 1529 and No.
550 respectively of the Securities and Insurance Commission.
The effects of these operations, including write-offs of property, are shown
on the attached chart.
Depreciations:
The charge against results for this item is Th Ch$ 3,450,711 in 2003 and Th
Ch$ 3,357,332 in 2002.
The detail is shown on an attached chart.
33
CRISTALERIAS DE CHILE S.A. AND SUBSIDIARIES
NOTE 12 - FIXED ASSETS
2003 2002
ThCh$ Th Ch$
-------- --------
LAND
Land and Mining Properties 12,995,463 13,425,783
Subtotal Lands 12,995,463 13,425,783
BUILDINGS AND INFRASTRUCTURE PROJECTS
Hi rises and industrial buildings 29,971,138 30,973,097
Installations 30,648,388 23,326,354
Residences 26,083 26,051
Subtotal Buildings and Infrastructure Projects 60,645,609 54,325,502
Accumulated Depreciation 18,736,333 15,498,745
Fiscal year Depreciation 742,349 608,288
Subtotal Depreciations 19,478,682 16,107,033
SUBTOTAL CONSTRUCTIONS & PROJECTS 41,166,927 38,218,469
MACHINERY AND EQUIPMENT
Machinery 83,977,342 89,208,390
Furnaces 35,912,456 37,563,044
Furniture and Furnishings 2,454,254 2,943,692
Tools 624,165 620,690
Rolling Stock 825,224 749,566
Subtotal Machinery and equipment 123,793,441 131,085,382
Accumulated Depreciation 62,792,548 60,816,445
Fiscal year Depreciation 2,656,474 2,697,222
Subtotal Depreciations 65,449,022 63,513,667
Subtotal Machinery and Equipment 58,344,419 67,571,715
OTHER FIXED ASSETS
Spare parts 5,394,574 4,716,214
Imports in transit 785,913 1,278,062
Work in progress 8,205,218 3,956,853
Lots in Pirque and Leyda 472,652 472,057
Deferred Customs Duties 383,750 522,695
Packages and Bundling 234,545 234,251
Other 1,978,851 1,918,370
Subtotal Other Fixed Assets 17,455,503 13,098,502
TOTAL FIXED ASSETS 214,890,016 211,935,169
TOTAL ACCUMULATED DEPRECIATION 81,528,881 76,315,190
TOTAL DEPRECIATION OF THE PERIOD 3,398,823 3,305,510
TOTAL NET FIXED ASSETS 129,962,312 132,314,469
34
TECHNICAL REVALUATION AND ADJUSTMENT TO ACCOUNTING VALUES
2003 2002
Th Ch$ Th Ch$
--------- --------
LAND
Land and mining properties 311,374 310,752
Subtotal net land and mining properties 311,374 310,752
BUILDINGS AND INFRASTRUCTURE PROJECTS
Hi rises and industrial buildings 6,221,626 6,213,606
Installations 41,120 440,769
Subtotal Buildings 6,262,746 6,654,375
Accumulated Depreciation (4,828,036) (5,014,374)
Fiscal year Depreciation (51,888) (51,822)
Subtotal depreciation (4,879,924) (5,066,196)
SUBTOTAL BUILDINGS AND INFRASTRUCTURE PROJECTS 1,382,822 1,588,179
TOTAL NET TECHNICAL REVALUATION 1,694,196 1,898,931
TOTAL REVALUED ASSETS 7,675,631 8,566,805
TOTAL ACCUMULATED DEPRECIATION (5,929,547) (6,616,052)
TOTAL DEPRECIATION OF THE PERIOD (51,888) (51,822)
TOTAL NET 1,694,196 1,898,931
35
13. Sales transactions with leaseback
These type of transactions were not carried out as of March 31, 2003 and 2002.
36
14. Investments in related companies
The Company has valued its investments in related companies according to
rules indicated in note 2 o).
EDICIONES CHILOE S.A.
On February 4, 2002, the partners of Ediciones Chiloe agreed to pay 86,352
shares already subscribed. Ciecsa paid Th Ch$ 19,859, equivalent to 43,176
shares, with which its stake maintained at 50%. The payment of 135,030 shares
remains outstanding, with a payment date expiring on September 2004.
INVESTMENTS ABROAD
RAYEN CURA S.A.I.C.
On December 28, 2002, the Company sold to its subsidiary CristalChile
Inversiones S.A. the investment it had in Rayen Cura S.A.I.C., a company
located in the city of Mendoza, Argentina. This transaction had no effect on
results.
In a Shareholders Meeting held on April 18, 2002 it was agreed to suscribe
and pay a capital increase of US$ 14,000,000. On April 29, 2002, Cristalchile
Inversiones S.A., effected a capital increase for US$ 5,760,000 to Rayen Cura
S.A.I.C., which was registered at a parity of 3.05 Argentine Pesos per US
Dollar, thereby maintaining its 40.0% stake in Rayen Cura's equity.
On August 6, 2002 the Board of Rayen Cura S.A.I.C. aproved the refund of part
of the irrevocable contributions subscribed and paid on April 29, 2002. The
total amount was US$1,500,000, of which Cristalchile Inversiones S.A. received
US$600,000, equivalent to 40% of its contribution.
On November 11, 2002 the Board of Rayen Cura S.A.I.C. aproved the refund of
part of the irrevocable contributions subscribed and paid on April 29, 2002.
The amount reimbursed was US$3,000,000, of which contributing refund issued
and paid at of 29 April, 2002, the amount was US$ 3,000,000 wich Cristalchile
Inversiones S.A. received US$1,200,000, equivalent to 40% of its contribution.
On January 31, 2003 the Board of Rayen Cura S.A.I.C. aproved the refund of
part of the irrevocable contributions subscribed and paid on April 29, 2002.
The amount reimbursed was US$3,000,000, of which contributing refund issued
and paid at of 29 April, 2002, the amount was US$ 3,000,000 wich Cristalchile
Inversiones S.A. received US$1,200,000, equivalent to 40% of its contribution.
37
As of March 31, 2003 the financial statements of Rayen Cura S.A.I.C. presented
an exchange rate of 3.17 Argentine Pesos per US Dollar. Cristalchile
Inversiones, in turn, has adjusted Rayen Cura S.A.I.C.'s financial statements
in order to recognize a devaluation that went from 3.17 to 3.32 Argentina
Pesos per US Dollar.
As a result of the operating income of the company, the Argentine Peso
devaluation and the conversion of the financial statements of Rayen Cura
S.A.I.C., according to Chilean regulations, Cristalchile Inversiones S.A. has
recognized a Th Ch$ 167,109 during the period.
On the other hand, the variation of the Dollar exchange rate in Chile during
the year caused adjustments for Th Ch$ 1,186,507 and Th Ch$ 355,453 in the
investment in Rayen Cura and on negative goodwill respectively, which were
credited to the item Other Equity Reserves.
As stipulated in Technical Bulletin No. 64 of the Accountants Association of
Chile, following is the information related to investments abroad:
2003 2002
Th$ Th$
---------- ----------
CristalChile Inversiones's share of
Rayen Cura S.A.I.C. 14,694,495 12,123,740
Negative goodwill(net of amortization) 5,439,971 5,400,920
---------- ----------
TOTAL 20,134,466 17,524,669
========== ==========
Devaluation Loss (1,955,840) (1,774,297)
Accrued Income (Loss) (167,109) (1,533,245)
Potentially remittable income 0 0
The investment in Rayen Cura S.A.I.C. is presented in American Dollars.
38
CRISTALERIAS DE CHILE S.A.
NOTE 14- INVESTMENTS IN RELATED COMPANIES
BREAKDOWN OF INVESTMENTS
Shareholder Company
Investment (Percentage) Equity
Country --------- -----------------------------------------------------
of Control Number of
R.U.T. COMPANY Origin Currency Shares 03-31-2003 03-31-2002 03-31-2003 03-31-2002
----- ------- ------ -------- -------- ---------- ---------- ---------- ----------
78.619.410-5 Cordillera Comunicaciones Chile Peso 0 50.000000000 50.00000000 141,987,532 156,884,940
Holding
78.619.370-2 Cordillera Comunicaciones Chile Peso 0 0.250000000 0.25000000 142,701,038 157,673,410
Ltda.
89.150.900-6 Vina Los Vascos S.A. Chile Peso 60,000,000 43.000000000 43.00000000 12,073,526 10,771,415
90.684.000-6 Editorial Zig-Zag S.A. Chile Peso 114,516,900 49.894881220 49.89000000 711,576 597,778
96.793.770-3 Ediciones Chiloe S.A. Chile Peso 1,570,146 50.000000000 50.00000000 1,390,352 1,593,478
96.826.870-8 Inmobiliaria Don Alberto Chile Peso 3,817 38.170000000 38.17000000 35 1,345
S.A.
86.881.400-4 Envases CMF S.A. Chile Peso 28,000 50.000000000 50.00000000 32,696,734 29,887,536
0-E Rayen Cura S.A.I.C Argentina Dollar 1,376,000 40.000000000 40.00000000 36,736,238 30,309,372
TOTAL
Net Result of
Income Accrual VPP
-------------------------------------------------------------------------------
R.U.T. COMPANY 03-31-2003 03-31-2002 03-31-2003 03-31-2002 03-31-2003 03-31-2002
----- ------- ---------- ---------- ---------- ---------- ---------- ----------
78.619.410-5 Cordillera Comunicaciones -2,992,322 -4,937,344 -1,496,162 -2,468,670 70,993,766 78,442,471
Holding
78.619.370-2 Cordillera Comunicaciones -3,007,359 -4,962,153 -7,518 -12,405 356,753 394,182
Ltda.
89.150.900-6 Vina Los Vascos S.A. 253,477 78,526 108,995 33,765 5,191,616 4,631,709
90.684.000-6 Editorial Zig-Zag S.A. -61,764 -89,279 -30,817 -44,512 355,040 298,261
96.793.770-3 Ediciones Chiloe S.A. -230,614 -115,139 -115,306 -57,570 695,176 796,740
96.826.870-8 Inmobiliaria Don Alberto S.A. 0 -1,584 0 -605 13 514
86.881.400-4 Envases CMF S.A. 546,135 288,532 273,066 144,265 16,348,367 14,943,768
0-E Rayen Cura S.A.I.C 417,772 -3,833,588 167,109 -1,533,435 14,694,495 12,123,749
TOTAL 108,635,226 111,631,394
Income not Book value of
Realized Investment
-----------------------------------------------------
R.U.T. COMPANY 03-31-2003 03-31-2002 03-31-2003 03-31-2002
----- ------- ---------- ---------- ---------- ----------
78.619.410-5 Cordillera Comunicaciones
Holding 0 0 70,993,766 78,442,471
78.619.370-2 Cordillera Comunicaciones 0 0 356,753 394,182
Ltda.
89.150.900-6 Vina Los Vascos S.A. 0 0 5,191,616 4,631,709
90.684.000-6 Editorial Zig-Zag S.A. 0 0 355,040 298,261
96.793.770-3 Ediciones Chiloe S.A. -205,441 -245,256 489,735 551,484
96.826.870-8 Inmobiliaria Don Alberto S.A 0 0 13 514
86.881.400-4 Envases CMF S.A. 0 0 16,348,367 14,943,768
0-E Rayen Cura S.A.I.C 0 0 14,694,495 12,123,749
TOTAL -205,441 -245,256 108,429,785 111,386,138
39
15. Investments in other companies
Investments in other companies that totaled Th Ch$ 821,513 as of March 31,
2003 (Th Ch$1,485,663 in 2002) are shown on the following chart:
CRISTALERIAS DE CHILE S.A.
NOTE 15 - INVESTMENTS IN OTHER COMPANIES
Book Value
Number of Shareholding ------------------------
R.U.T. Company Name Shares (Percentage) 03/31/2003 03-31-2002
----- ----------- --------- ------------ ---------- ----------
96.895.100-9 Internet Holding S.A. 57,104 7.4200 220,982 882,815
0-E Bazuca.com Inc. 266,500 7.8900 600,531 599,775
96.787.750-6 Metropolis Intercom S.A. 1 0.0000 0 22
96.806.690-0 Proser S.A. 50 0.5000 0 3,051
40
16. Goodwill Amortization
NEGATIVE GOODWILL
Stock purchases made in different periods of S.A. Vina Santa Rita, Vina Los
Vascos S.A., Ciecsa S.A., Ediciones Financieras S.A., Envases C.M.F. S.A., and
Rayen Cura S.A.I.C. have produced negative goodwill whose net balance to be
amortized as of March 31, 2003 totaled Th Ch 9,682,180 (Th Ch$ 9,061,628 in
2002).
POSITIVE GOODWILL
As of March 31, 2003 and 2002 the Company and subsidiaries do not present any
balance for this item.
41
CRISTALERIAS DE CHILE S.A.
NOTE 15 - GOODWILL ON INVESTMENTS
NEGATIVE GOODWILL
03-31-2003 03-31-2002
---------------------------- --------------------------
R.U.T. Company Name Amount Amortiz. Goodwill Amount Amortiz. Goodwill
this period Balance this period Balance
----- ------------ ----------- --------- ------------ ---------
99.999.999-9 Rayen Cura S.A. 82,424 5,439,971 77,156 5,400,920
86.547.900-K S.A. Vina Santa Rita 12,482 593,717 12,466 642,835
96.608.270-4 Ciecsa S.A. 30,159 1,417,461 30,121 1,536,161
89.150.900-6 Vina Los Vascos S.A. 22,181 1,206,742 22,171 1,294,832
90.684.000-6 Editorial Zig-Zag S.A. 1,580 106,636 1,578 112,813
96.539.380-3 Ediciones Financieras S.A. 0 0 0 0
79.952.350-7 Red Televisiva Megavision S.A. 13,250 917,653 1,899 74,067
TOTAL 162,076 9,682,180 145,391 9,061,628
42
17. Intangibles
INTANGIBLES
The following values are included in this item:
Th Ch$ Th Ch$
2003 2002
-------- -------
Concession of Channel 9
frequency and regional network 10,129,861 10,117,120
Trademarks 1,593,224 1,513.773
TOTAL INTANGIBLES 11,723,085 11,630,893
========== ==========
ACCUMULATED AMORTIZATIONS
From Channel 9 Frequency (862,391) (712,516)
From Trademarks (185,151) (151,438)
TOTAL AMORTIZATIONS (1,047,542) (863,954)
========== ==========
43
18. Other (Assets)
Its composition is the following:
Th Ch$ Th Ch$
2003 2002
---------- ----------
Celulosa Arauco bonds (*) 10,754,702 9,136,661
Price differential bond adquisition 170,716 267,297
Cash Reserve 16,597 45,500
Local programs to be exhibited over
a year from the present 0 926,834
Foreign programs to be exhibited over
a year from the present 1,351,598 6,301
Negative goodwill Bond Sale (Net) 2,414,627 1,074,155
Long-Term Tax VAT Vina Dona Paula 355,419 0
Expenses of bond sales 1,174,189 230,362
Prepaid Custom Duty Interests 0 208.248
Share of Las Araucarias Golf Club 2,495 0
Others 95,116 221,409
---------- ----------
Total 16,335,459 12,116,767
========== ==========
(*) Investments in Celulosa Arauco bonds equivalent to US$13,420,000 at an
annual rate of 6.95% and maturity with on March 15, 2005, its valuation and
registry is in line with Circular No 368 of the Securities and Insurance
Comission, as a long-term fixed rate instrument.
Considering that there is the intention of maintaining the Celulosa Arauco and
Constitucion S.A. bonds until their due date on March 15, 2005, the valuation
and registration of the bonds fulfills the provisions in Circular Letter No.
368 of the S.V.S., as Long-term Fixed Rate Instruments.
44
19. Short-term obligations with banks and financial institutions
A detailed list of operations is shown on the attached chart.
45
CRISTALERIAS DE CHILE S.A.
NOTE 19- SHORT TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS
Type of Currency and Readjustment Index
--------------------------------------------------------------------------------
Other Foreign
Dollars Euro Yens Currencies
----------------------- ---------------- --------------- -------------
Bank or Financial 03-31- 03-31- 03-31- 3-31-
R.U.T Institution 03-31-2003 03-31-2002 2003 2002 2003 2002 03-31-2003
----- ----------------- ---------- ---------- ----- ----- ----- ----- ----------
Short term (code: 5.21.10.10)
0-E Banco Regional de Cuyo 0 0 0 0 0 0 9,827
97.036.000-K Banco Santiago 0 0 0 0 0 0 0
Other 0 0 0 0 0 0 0
TOTAL 0 0 0 0 0 0 9,827
Amount capital due 0 0 0 0 0 0 0
Annual average interest rate 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Long Term - Short Term (code: 5.21.10.20)
0-E JP Morgan Chase Bank 445,743 19,554,244 0 0 0 0 0
97.036.000-K Banco Santiago 0 0 0 0 0 0 0
97.008.000-7 Citibank NA 2,020,655 1,939,280 0 0 0 0 0
0-E Banco Dresner 0 997,950 0 0 0 0 0
0-E Banco Argentaria 267,739 249,150 0 0 0 0 0
97.018.000-1 Scotiabank 0 0 0 0 0 0 0
97.006.000-6 Banco Credito e Inversiones 0 0 0 0 0 0 0
97.004.000-4 Banco Chile 0 0 0 0 0 0 0
97.030.000-5 Banco Estado 0 0 0 0 0 0 0
Other 0 0 0 0 0 0 0
TOTAL 2,734,137 22,740,624 0 0 0 0 0
Amount capital due 2,261,452 22,529,344 0 0 0 0 0
Average annual interest rate 2.01 3.6 0.00 0.00 0.00 0.00 0.00
Percentage oblig. foreign curr. (%) 62.0000
Percentage oblig. foreign curr. (%) 38.0000
Type of Currency and
Readjustment Index
----------------------------------
Other
Foreign
Currencies U.F. Non adjustable $ Total
---------- ----------------------- ------------------------ -----------------------
Bank or Financial
R.U.T Institution 03-31-2002 03-31-2003 03-31-2002 03-31-2003 03-31-2002 03-31-2003 03-31-2002
----- ----------------- --------- ---------- ---------- ---------- ---------- ---------- ----------
Short term (code: 5.21.10.10)
0-E Banco Regional de Cuyo 4,453 0 0 0 0 9,827 4,453
97.036.000-K Banco Santiago 0 0 0 0 1,048,086 0 1,048,086
Other 0 0 0 0 0 0 0
TOTAL 4,453 0 0 0 1,048,086 9,827 1,052,539
Amount capital due 4,453 0 0 0 1,038,000 0 1,042,543
Annual average interest rate 0.00 0.00 0.00 0.00 6.96
Long Term - Short Term (code: 5.21.10.20)
0-E JP Morgan Chase Bank 0 0 0 0 0 445,743 19,554,244
97.036.000-K Banco Santiago 0 476,661 2,320,805 0 0 476,661 2,320,805
97.008.000-7 Citibank NA 0 0 0 0 0 2,020,655 1,939,280
0-E Banco Dresner 0 0 0 0 0 0 997,950
0-E Banco Argentaria 0 0 0 0 0 267,739 249,150
97.018.000-1 Scotiabank 0 421,201 447,928 0 0 421,201 447,928
97.006.000-6 Banco Credito e Inversiones 0 168,462 170,348 0 0 168,462 170,348
97.004.000-4 Banco Chile 0 307,485 218,186 0 0 307,485 218,186
97.030.000-5 Banco Estado 0 0 0 268,804 0 268,804 0
Other 0 0 0 0 0 0 0
TOTAL 0 1,373,809 3,157,267 268,804 0 4,376,750 25,897,891
Amount capital due 0 1,310,821 3,032,956 264,374 0 3,836,647 25,562,300
Average annual interest rate 0.00 3.79 7.28 4.94 0.00
46
20. Other Current Liabilities
As of March 31, 2003 and 2002 , there is a balance Th Ch$ 1,112,135 and Th Ch$
4,157,764 respectively in other current liabilities, corresponding to a
difference in favor of financial institutions for future contracts in foreing
currency subscribed by the Company, S.A. Vina Santa Rita and Ciecsa S.A.
47
21. Long-term obligations with banks and financial institutions
The obligations with banks and financial institutions are presented on the
charts attached.
48
CRISTALERIAS DE CHILE S.A.
NOTE 21: LONG-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS
Institution Years to Maturity
Bank or Currency More than 1 More than 2 More than 3 More than 5
Financial adjustment up to 2 up to 3 up to 5 up to 10
R.U.T. Institution index
Thou Ch$ Thou Ch$ Thou Ch$ Thou Ch$
------ ----------- ---------- -------- -------- -------- --------
0-E J.P. Morgan Chase Bank Dollars 0 0 36,578,000 0
90.008.000-K Citibank N.A. Dollars 1,996,318 0 0 0
97.018.000-1 Banco Scotiabank UF 402,772 402,772 805,544 0
97.006.000-6 Banco Credito e Inversiones UF 167,836 167,836 0 0
97.004.000-5 Banco Chile UF 1,211,029 0 0 0
0-E Banco Argentaria Dollars 267,739 0 0 0
0-E Banco Regional de Cuyo Other 26,379 22,190 12,229 0
currency
97.030.000-7 Banco Estado Non-adjustment 409,851 132,188 264,375 0
97.036.000-K Banco Santiago UF 454,276 454,276 681,414 0
Total 4,936,200 1,179,262 38,341,562 0
Percentage of obligations in foreign currency 87.0000%
Percentage of obligations in local currency 13.0000%
Institution Years to Maturity Closing date Closing date
Current period Previous period
----------- ----------------- -------------- ---------------
Bank or More than 10 years Total Long- Annual Total Long-
Financial Amount Period Term at closing average Term at closing
R.U.T. Institution ------ ------ of Financial interest of Financial
Thou Ch$ Statements rate Statements
------ ----------- -------- ---------- ---- ----------
0-E J.P. Morgan Chase Bank 0 0 36,578,000 2.675 48,630,300
90.008.000-K Citibank N.A. 0 0 1,996,318 1.95 3,719,624
97.018.000-1 Banco Scotiabank 0 0 1,611,088 TAB 180+2.0 2,017,409
97.006.000-6 Banco Credito e Inversiones 0 0 335,672 TAB 90+2.0 504,393
97.004.000-5 Banco Chile 0 0 1,211,029 TAB 180+2.0 1,499,605
0-E Banco Argentaria 0 0 267,739 4,4525 502,288
0-E Banco Regional de Cuyo 0 0 60,798 1.60 59,212
97.030.000-7 Banco Estado 0 0 806,414 4.64 0
97.036.000-K Banco Santiago 0 0 1,589,966 TAB 180+1.8 0
Total 0 44,457,024 56,932,831
49
22. Short and long-term obligations with the public
(promissory notes and bonds)
The short-term balance as of March 2003 was Th Ch$ 1,323,579, of which Th
Ch$1,109,212 corresponding to accrued interests and ThCh$ 214,367 to principal
of bonds series A issued by S.A. Vina Santa Rita.
As of March 31, 2003, there were long-term obligations with the public for Th
Ch$ 88,953,080, of which Th Ch$ 68,812,760 correspond to bonds issued in UF's
by the Company of series C1, C2, D1, D2; and Th Ch$ 20,140,320 correspond to
bonds issued by Vina Santa Rita in UF of series A, C and D.
As of March 31, 2002 there was a balance of Th Ch$ 583,574 for the short-term
and Th Ch$ 20,596,135 for the long-term corresponding to bonds issued by S.A.
Vina Santa Rita.
This liability is shown in detail in the annex.
50
Cristalerias de Chile S.A.
NOTE 22: SHORT-TERM AND LONG-TERM OBLIGATIONS WITH PUBLIC (PROMISSORY NOTES
AND BONDS)
BONDS
REGISTRATION OR CURRENT INSTALLMENTS
IDENTIFICATION No. DEPOSIT INDEXING INTEREST FINAL INTEREST AMORTIZATION
OF INSTRUMENT SERIES FACE VALUE UNIT OF BOND RATE MATURITY PAYMENT PAYMENT
------------- ------ ---------- ------------ ---- -------- ------- -------
LONG-TERM BONDS-CURRENT PORTION
296-09.07.02 C1 Interests 0 UF 4.75 07-15-2003 SEMI-ANNUAL SEMI-ANNUAL
296-09.07.02 C2 Interests 0 UF 4.75 07-15-2003 SEMI-ANNUAL SEMI-ANNUAL
296-09.07.02 D1 Interests 0 UF 5.80 07-15-2003 SEMI-ANNUAL SEMI-ANNUAL
296-09.07.02 C2 Interests 0 UF 5.80 07-15-2003 SEMI-ANNUAL SEMI-ANNUAL
144-12.07.91 A 12,500 UF 6.70 06-01-2003 SEMI-ANNUAL SEMI-ANNUAL
241-15.12.00 C1 Interests 0 UF 6.25 06-01-2003 SEMI-ANNUAL SEMI-ANNUAL
241-15.12.00 D1 Interests 0 UF 6.25 06-01-2003 SEMI-ANNUAL SEMI-ANNUAL
241-15.12.00 C2 Interests 0 UF 6.25 06-01-2003 SEMI-ANNUAL SEMI-ANNUAL
TOTAL CURRENT PORTION
LONG-TERM BONDS
296-09.07.02 C1 1,500,000 UF 4.75 07-15-2008 SEMI-ANNUAL SEMI-ANNUAL
296-09.07.02 C2 500,000 UF 4.75 07-15-2008 SEMI-ANNUAL SEMI-ANNUAL
296-09.07.02 D1 1,900,000 UF 5.80 07-15-2023 SEMI-ANNUAL SEMI-ANNUAL
296-09.07.02 D2 200,000 UF 5.80 07-15-2023 SEMI-ANNUAL SEMI-ANNUAL
144-7.12.91 A 0 UF 6.70 06-01-2003 SEMI-ANNUAL SEMI-ANNUAL
241-15.12.00 C1 200,000 UF 6.25 12-15-2005 SEMI-ANNUAL SEMI-ANNUAL
241-15.12.00 D1 100,000 UF 6.25 12-15-2021 SEMI-ANNUAL SEMI-ANNUAL
241-15.12.00 D2 900,000 UF 6.25 12-15-2021 SEMI-ANNUAL SEMI-ANNUAL
LONG-TERM TOTAL
REGISTRATION OR ISSUE
IDENTIFICATION No. PAR VALUE IN CHILE OR
OF INSTRUMENT SERIES 03-31-2003 03-31-2002 ABROAD
------------- ------ ---------- ---------- ------
LONG-TERM BONDS-CURRENT PORTION
296-09.07.02 C1 Interests 246,241 0 LOCAL
296-09.07.02 C2 Interests 82,080 0 LOCAL
296-09.07.02 D1 Interests 379,893 0 LOCAL
296-09.07.02 C2 Interests 39,989 0 LOCAL
144-12.07.91 A 214,367 223,905 LOCAL
241-15.12.00 C1 Interests 60,168 59,945 LOCAL
241-15.12.00 D1 Interests 30,084 29,972 LOCAL
241-15.12.00 C2 Interests 270,757 269,752 LOCAL
TOTAL CURRENT PORTION 1,323,579 583,574
LONG-TERM BONDS
296-09.07.02 C1 25,175,400 0 LOCAL
296-09.07.02 C2 8,391,800 0 LOCAL
296-09.07.02 D1 31,888,840 0 LOCAL
296-09.07.02 D2 3,356,720 0 LOCAL
144-7.12.91 A 0 420,330 LOCAL
241-15.12.00 C1 3,356,720 3,362,634 LOCAL
241-15.12.00 D1 1,678,360 1,681,317 LOCAL
241-15.12.00 D2 15,105,240 15,131,854 LOCAL
LONG-TERM TOTAL 88,953,080 20,596,135
51
23. Provisions and Write-Offs
Provisions
The Company has short-term provisions of Th Ch$ 9,657,719 as of March 31,
2003, and Th Ch$ 10,529,408 in 2002.
Long-term provisions of Th Ch$ 6,063,280 and Th Ch$ 7,164,981 are recorded for
the years 2003 and 2002 respectively.
In the attached chart a detail for provisioned amounts is shown.
Bad Debt Provisions:
The Company and S.A. Vina Santa Rita and Ciecsa S.A. have established a bad
debt provision of Th Ch$ 649,839 and Th Ch$ 516,495, as of March of 2003 and
2002, respectively.
The companies charged Th Ch$ 7,961 to the provision in 2002.
This provision is deducted from the balance of Debtors from Sales and
Documents and Notes Receivable.
Vacation Provision:
The Company and its subsidiaries have established provisions for the total
cost of vacations pending as of March 31, 2003 and 2002, as established in
Technical Bulletin No. 47 of the Accountants Association of Chile.
The net balance for this item is Th Ch$ 694,013 as of March 31, 2003 (Th Ch$
652,891 in 2002).
Provision for Furnace Reconstruction:
This reserve is established throughout the useful life of the refractants of
each smelting furnace so their repair will not distort the result of the
fiscal year when the repairs are made.
The Company has established a provision in the amount of Th Ch$ 3,268,385 and
Th Ch$ 4,581,603 as of March 31, 2003 and 2002, respectively.
52
CRISTALERIAS DE CHILE S.A.
NOTE 23: PROVISIONS
03-31-2003 03-31-2002
Thou Ch$ Thou Ch$
Short Term
Commissions and Fees 2,500,931 2,197,921
Furnace reconstruction 1,170,334 1,157,401
Share of Board of Directors 1,086,638 916,902
Legal holidays 694,013 652,891
Local and foreign suppliers 728,114 499,976
Packing return to clients 1,024,731 1,186,067
Spareparts reserve 463,350 463,350
Insurance Policies 0 168,085
Advertising and marketing 154,275 499,088
Copyright 29,895 278,535
Subsidiary Loss Provision 464,977 0
Severance payments 171,373 143,925
Bonus Provision 133,484 0
Exported products loss Provision 109,734 0
Reserve indirect cost 334,781 0
Grape harvest expenses 370,398 474,164
Machinery repair 0 1,046,147
Other accounts payable provisioned 220,691 844,956
TOTAL Short term 9,657,719 10,529,408
Long Term
Severance payment 3,965,229 3,740,779
Furnace reconstruction 2,098,051 3,424,202
TOTAL Long term 6,063,280 7,164,981
53
24. Severance Payment
The provision for severance payments to personnel is included at its current
value, as expressed in note 2 t).
As oF March 2003 the provision amounts to Th Ch$ 4,136,602 (Th Ch$ 3,884,704
in 2002).
As of March 31, 2003, the Company has made severance payments of Th Ch$ 802
(Th Ch$ 21,737 in 2002) chargeable against the provision.
54
25. Other long-term liabilities
As of March 31, 2003 and 2002 there are no balances for this item.
55
26. Minority interest
The subsidiaries that generate minority interests as of March 31, 2003 and
2002 are shown in the following chart:
CRISTALERIAS DE CHILE S.A.
NOTE 26: MINORITY INTEREST
NET WORTH RESULTS SHAREHOLDING
--------- ------- ------------
Th Ch$ Th Ch$ Th Ch$ Th Ch$ % %
------ ------ ------ ------ --- ---
2003 2002 2003 2002 2003 2002
---- ---- ---- ---- ---- ----
S.A.Vina Santa Rita 37,208,571 33,848,807 (553,717) (484,158) 45.90 45.90
CIECSA Consolidated 257,393 2,077,046 12,698 52,558 1.73 1.79
Constructora Apoger S.A. 1,172 9,906 61 105 20.00 20.00
Cristalchile Comunicaciones S.A. 1,412 1,560 30 48 0.01 0.01
TOTAL 37,468,548 35,937,319 (540,928) (431,447)
56
27. Changes in Equity
a. Activity in 2003 and 2002
The activity of the capital and reserve accounts in the fiscal years ended in
March 31, 2003 and 2002, are shown in the attached charts.
b. Other Reserves
The detail of this item is as follows:
2003 2002
---- ----
ThCh$ ThCh$
----- -----
Future capital increases 4,464,029 4,251,548
Reserve for adjustment of value of fixed assets 1,694,196 1,898,932
Adjustment for conversion difference in
investment in Rayen Cura S.A.I.C. 4,099,356 2,380,773
Difference VPP Sodex (217,173) (216,900)
---------- ---------
TOTAL OTHER RESERVES 10,040,408 8,314,353
========== =========
57
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN EQUITY
ITEM Paid-in Reserve capital Premium in Other Reserve
Capital revaluation sale of shares Reserves Future Dividends
------- ----------- -------------- -------- ----------------
Balances as of 03/31/2003
Initial balance 64,749,257 0 27,598,393 9,713,099 114,912,655
Distribution result previous fiscal year 0 0 0 0 0
Final dividend previous fiscal year 0 0 0 0 0
Capital increases with cash stock issue 0 0 0 0 0
Reserves and/or Profits Capitalization 0 0 0 0 0
Development period Accumulated deficit 0 0 0 0 0
Accumulated conversion difference adjustment 0 0 0 278,744 0
Owner's equity Revaluation 0 323,746 137,992 48,565 574,563
Fiscal Year Result 0 0 0 0 0
Provisional Dividends 0 0 0 0 0
Final balances as of 3/31/2003 64,749,257 323,746 27,736,385 10,040,408 115,487,218
Initial balance as of 03/31/2002 62,863,356 0 26,794,558 7,942,919 102,798,113
Distribution result previous fiscal year 0 0 0 0 0
Final dividend previous fiscal year 0 0 0 0 0
Capital increases with cash stock issue 0 0 0 0 0
Reserves and/or profit Capitalization 0 0 0 0 0
Development period accumulated deficit 0 0 0 0 0
Accumulated conversion difference adjustment 0 0 0 98,828 0
Owner's equity revaluation 0 -251,453 -107,180 -31,773 -411,190
Fiscal Year Result 0 0 0 0 0
Provisional Dividends 0 0 0 0 0
Final balances 62,863,356 -251,453 26,687,378 8,009,974 102,386,923
Updated Final Balances as of 03/31/2002 65,252,164 -261,008 27,701,498 8,314,353 106,277,626
ITEM Accumulated Provisional Devel. Fiscal
Results Dividends Period Deficit Year Result
------- --------- -------------- -----------
Balances as of 03/31/2003
Initial balance 0 0 0 0
Distribution result previous fiscal year 17,660,662 0 0 0
Final dividend previous fiscal year -3,303,936 0 0 0
Capital increases with cash stock issue 0 0 0 0
Reserves and/or Profits Capitalization 0 0 0 0
Development period Accumulated deficit 0 0 0 0
Accumulated conversion difference adjustment 0 0 0 0
Owner's equity Revaluation 71,784 0 0 0
Fiscal Year Result 0 0 0 4,321,062
Provisional Dividends 0 0 0 0
Final balances as of 3/31/2003 14,428,510 0 0 4,321,062
Initial balance as of 03/31/2002 0 0 -123,129 0
Distribution result previous fiscal year 17,770,611 0 0 0
Final dividend previous fiscal year -4,657,728 0 0 0
Capital increases with cash stock issue 0 0 0 0
Reserves and/or profit Capitalization 0 0 0 0
Development period accumulated deficit 0 0 0
Accumulated conversion difference adjustment 0 0 0 0
Owner's equity revaluation -52,451 0 493 0
Fiscal Year Result 0 0 0 175,829
Provisional Dividends 0 0 0 0
Final balances 13,060,432 0 -122,636 175,829
Updated Final Balances as of 03/31/2002 13,556,728 0 -127,296 182,511
58
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN EQUITY
NUMBER OF SHARES
No.
SERIES No. No. SHARES
SHARES SHARES WITH VOTING
SUBSCRIBED PAID RIGHTS
---------- ---- ------
SINGLE 64,000,000 64,000,000 64,000,000
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN EQUITY
CAPITAL (AMOUNT - TH CH$)
SERIES SUBSCRIBED PAID-IN
CAPITAL CAPITAL
------- -------
SINGLE 64,749,257 64,749,257
59
28. Other Non-Operating Income and Expenses
As of March 31, 2003 and 2002 the non-operating income totals Th Ch$ 137,520
and Ch$ 240,285 respectively.
Non-operating Expenditures were Th Ch$ 536,153 in 2003 and Th Ch$ 423,441 in
2002.
More detail is shown in the following chart.
CRISTALERIAS DE CHILE S.A.
NOTE 28: OTHER NON-OPERATING INCOME AND EXPENSES
2003 2002
---- ----
Th Ch$ Th Ch$
------ ------
INCOME
Rentals 43,860 55,837
Tax exemptions 4,139 68,324
Indemnity for claims 0 250
Benefit Fontec Proyect 5,443 0
Amortization of non-realized profits 18,732 8,178
Sale of fixed assets 4,041 0
Sale of materials 4,753 7,047
Agricultural distribution 20,846 0
Other income 35,706 100,649
------ -------
TOTAL NON-OPERATING INCOME 137,520 240,285
======= =======
EXPENSES
Soap operas charge off 32,376 0
Frequency and internet amortization 37,060 33,929
Professional advice 194,021 197,325
Share of Board of Directors 23,388 20,819
Contracts and contingencies 45,527 62,271
Loss in sales of fixed assets 2,373 14,797
Trademarks amortization 13,074 12,298
Amortization managment expenses (long-term) 30,727 0
Licenses 5,939 0
Insurances 10,691 4,021
Severance payments 21,311 5,827
Other expenses 114,693 72,154
------- ------
TOTAL NON-OPERATING EXPENSES 531,180 423,441
======= =======
60
29. Adjustment for Price Level Restatements
As a result of the application of the adjustment for price level restatements
as described in Note 2 e), there was a net credit to results in the 2003
fiscal year in the amount of Th Ch$ 156,293 and a net charge against results
of Th Ch$ 161,546 in 2002.
Additional information organized by item on the Balance Sheet is shown in the
following chart:
Cristalerias de Chile S.A.
NOTE 29: ADJUSTMENT FOR PRICE LEVEL RESTATEMENTS
ADJUSTABILITY
ASSETS (DEBITS)/CREDITS INDEX 03-31-2003 03-31-2002
----------------------- ----- ---------- ----------
INVENTORY CPI 87,714 -120,606
FIXED ASSETS CPI 668,346 -527,798
INVESTMENTS IN RELATED COMPANIES CPI 1,288,877 -410,979
MARKETABLE SECURITIES CPI 18,997 -13,575
TIME DEPOSIT CPI 0 0
SHORT-TERM DEBTORS CPI -22,518 -8,081
SHORT-TERM DEBTORS UF 809 0
ACCOUNTS RECEIVABLE RELATED COMPANIES UF 51,766 -87,634
LONG-TERM DEBTORS UF 725 -252
OTHER NON-MONETARY ASSETS CPI 233,538 -396,773
EXPENSE AND COST ACCOUNTS CPI 238,627 -8,369
TOTAL (DEBITS)/CREDITS 2,566,881 -1,574,067
LIABILITIES (DEBITS)/ CREDITS
NET WORTH CPI -1,990,017 885,990
ACCOUNTS PAYABLE RELATED COMPANIES UF -5 155
BANK LOANS CPI 0 97,494
BANK LOANS UF -3,965 0
SHORT-TERM RESERVES CPI -11,709 -4,671
SHORT-TERM CREDITORS CPI 0 0
LONG-TERM BANK LOANS CPI 0 210,485
LONG-TERM BANK LOANS UF -10,307 0
LONG-TERM RESERVES CPI -20,061 -16,280
LONG-TERM CREDITORS CPI -109 240
OBLIGATIONS WITH THE PUBLIC UF -209,738 83,496
MINNORITY INTEREST CPI -428 0
NON-MONETARY LIABILITIES CPI 1,954 66,665
NON-MONETARY LIABILITIES UF -21,092 0
INCOME ACCOUNTS CPI -145,111 88,947
TOTAL (DEBITS)/ CREDITS -2,410,588 1,412,521
(LOSS) PROFIT FROM ADJUSTMENT
FOR CURRENCY DEVALUATION 156,293 -161,546
61
30. Exchange Differences
There is a net credit to results in the 2003 fiscal year of Th Ch$ 1,661,984
and a net charge of Th Ch$ 9,713 in 2002 corresponding to exchange rate
differences.
According to dispositions of Circular No. 1560 of the Securities and Insurance
Comission, the net effect on results of the assets and liabilities in foreign
currency without considering the effect of inflation of the local currency, is
presented in this item.
More information is shown in the following chart:
Cristalerias de Chile S.A.
NOTE 30: EXCHANGE DIFFERENCES
ITEM CURRENCY AMOUNT
03-31-2003 03-31-2002
CURRENT ASSETS DOLLARS 150,763 208,463
CURRENT ASSETS OTHER CUR. -35,202 7,457
MARKETABLE SECURITIES DOLLARS 974,083 0
CLIENTS DOLLARS 234,582 82,348
CLIENTS OTHER CUR 35,503 -10,407
TIME DEPOSITS DOLLARS -102,492 -10,477
INVENTORY DOLLARS 150,432 -253
INVENTORY OTHER CUR 0 -6
INVESTMENT IN BOND DOLLARS 231,941 0
FUTURE CONTRACT EFFECT DOLLARS 1,304,942 0
INFLATIONARY EFFECT DOLLARS -170,436 0
OTHER ASSETS DOLLARS 2,196 13,791
OTHER ASSETS OTHER CUR. 4,190 2,767
TOTAL (DEBITS) CREDITS 2,780,502 293,683
SHORT TERM BANK CREDITS DOLLARS 0 -175,476
ACCOUNT PAYABLE DOLLARS 0 -
DOCUMENTS PAYABLE DOLLARS -61,673 -58,382
DOCUMENTS PAYABLE OTHER CUR. -15,647 13,709
MISCELLANEOUS CREDITORS SHORT TERM DOLLARS -40,833 -410
SHORT TERM PROVISIONS DOLLARS -58,122 -1,552
LONG TERM BANK CREDITS DOLLARS -647,500 -81,974
MISCELLANEOUS CREDITORS LONG TERM DOLLARS -31,512 -4,285
LONG TERM PROVISIONS DOLLARS -28,590 -4,776
OTHER LONG-TERM LIABILITIES DOLLARS -205,311 -10,307
OTHER LONG-TERM LIABILITIES OTHER CUR. -29,330 20,057
TOTAL (DEBITS) CREDITS -1,118,518 -303,396
(LOSS) PROFIT FROM RATE OF EXCHANGE DIFFERENCE 1,661,984 -9,713
62
31. Extraordinary Items
The Company does not record extraordinary items for the period January-March
2003 and 2002.
63
32. Stock and bond issue and placement expenses
The Company and S.A.Vina Santa Rita effected bond placements in August 2002
and March 2001, respectively, which produced placement expenses that as of
March 31, 2003 totaled Th Ch$ 3,951,054 (Th Ch$ 270,239 in 2002)
The charge against results for the amortization of these expenses is Th Ch$
90,829 in 2003 (Th CH$ 11,253 in 2002), and is done according to each series'
maturity.
64
33. Cash Flow Statement
CASH FLOW STATEMENT
The values included in MISCELLANEOUS on the Cash Flow Statement are detailed
in the following table:
CRISTALERIAS DE CHILE S.A. and sbsidiaries
CASH FLOW STATEMENT
1. The following details the item OTHERS:
2003 2002
Th Ch$ Th Ch$
------ ------
541.11.40 Other Income Received
Recover VAT exportation 114,352 94,478
Discount for paid of customs duties 0 210,581
Offices and establishments rental 12,779 0
Income Tax redemption 133,416 0
Franquicia Taxable 4,139 68,324
Other income 124,311 48,719
Total 388,997 422,102
541.11.80 Other expenses paid
Exchange difference 168,532 64,903
Donations 7,770 19,569
Advice Services 34,470 18,118
Severance payments 21,311 5,827
Shareholder's bonds 23,388 0
Other expenses 211,683 166,236
Total 467,154 294,654
541.13.30 Other investment income
Maturity of future contracts 1,762,160 1,899,192
Total 1,762,160 1,899,192
541.13.65 Other investment disbursements
Purchase of shares 11,680 0
Future contracts 0 349,475
Total 11,680 349,475
65
Following are financing and investment activities that did not generate cash
flow during the fiscal year, but that commit future parent company cash flows:
ITEM Amount Th Ch $ Due Date
Dividend 153 5,526,400 April-03
Amounts payable investment 1,748,597 April-03
Amounts payable investment 110,808 Mayo-03
TOTAL 7,385,805
66
34. Derivative Contracts
FUTURE CONTRACTS IN FOREIGN CURRENCY
The parent company and its subsidiaries S.A. Vina Santa Rita and Ciecsa S.A.
have signed future sales contracts in foreign currency of Th US$ 131,200 in
2003 (Th US$ 137,800 in 2002) subject to the regulations of Chapter VII of the
Compendium of International Exchange Regulations of the Central Bank of Chile
and Chapter 13-2 of the compilation of Regulations of Banks and Financial
Institutions.
Additional information is presented on the attached chart listed in the order
of each quarterly expiration period.
67
CRISTALERIAS DE CHILE S.A.
NOTE 34: DERIVATIVE CONTRACTS
MATURITY OR DESCRIPTION OF CONTRACTS VALUE OF
TYPE OF TYPE OF VALUE OF EXPIRATION SPECIFIC PURCHASE/ PROTECTED ITEM OR PROTECTED
DERIVATIVE CONTRACT CONTRACT DATE ITEM SALE POSITION TRANSACTION ITEM
---------- -------- -------- ---- ---- ------------- ----------- ----
NAME AMOUNT
---- ------
FR CI 5,496,858 SECOND 2003 EXCH RATE P - - -
FR CI 50,709,306 THIRD 2003 EXCH RATE P - - -
FR CI 23,075,018 FOURTH 2003 EXCH RATE P - - -
FR CCPE 742,140 FIRST 2004 EXCH RATE P DOLLAR LOAN 742,140 731,560
FR CCPE 742,140 FIRST 2004 EXCH RATE P DOLLAR LOAN 742,140 731,560
FR CCPE 2,276,250 THIRD 2003 EXCH RATE P DOLLAR LOAN 2,276,250 2,194,680
FR CCPE 1,491,200 THIRD 2003 EXCH RATE P DOLLAR LOAN 1,491,200 1,463,120
FR CI 1,513,580 THIRD 2003 EXCH RATE P - - -
FR CI 1,513,580 THIRD 2003 EXCH RATE P - - -
FR CI 1,442,580 FOURTH 2003 EXCH RATE P - - -
FR CI 721,290 FOURTH 2003 EXCH RATE P - - -
FR CI 1,456,920 FOURTH 2003 EXCH RATE P - - -
FR CI 1,456,920 FOURTH 2003 EXCH RATE P - - -
FR CI 721,290 FOURTH 2003 EXCH RATE P - - -
FR CI 643,830 SECOND 2003 EXCH RATE P - - -
FR CI 353,270 FOURTH 2003 EXCH RATE P - - -
FR CI 353,270 FOURTH 2003 EXCH RATE P - - -
FR CI 445,854 FOURTH 2003 EXCH RATE P - - -
MATURITY OR ACCOUNTS AFFECTED
TYPE OF TYPE OF VALUE OF EXPIRATION ASSETS/LIABILITIES EFFECT ON RESULT
DERIVATIVE CONTRACT CONTRACT DATE NAME AMOUNT REALIZED NOT REALIZED
---------- -------- -------- ---- ---- ------ -------- ------------
FR CI 5,496,858 SECOND 2003 ASSETS 375,938 375,938 -
FR CI 50,709,306 THIRD 2003 LIABILITIES 938,830 938,830 -
FR CI 23,075,018 FOURTH 2003 LIABILITIES 334,902 334,902 -
FR CCPE 742,140 FIRST 2004 LIABILITIES 11,760 1,180 -
FR CCPE 742,140 FIRST 2004 LIABILITIES 11,777 1,197 -
FR CCPE 2,276,250 THIRD 2003 LIABILITIES 78,668 2,978 -
FR CCPE 1,491,200 THIRD 2003 LIABILITIES 43,622 438 -
FR CI 1,513,580 THIRD 2003 LIABILITIES 52,445 52,445 -
FR CI 1,513,580 THIRD 2003 LIABILITIES 52,175 52,175 -
FR CI 1,442,580 FOURTH 2003 ASSETS 15,320 15,320 -
FR CI 721,290 FOURTH 2003 ASSETS 6,473 6,473 -
FR CI 1,456,920 FOURTH 2003 ASSETS 3,107 3,107 -
FR CI 1,456,920 FOURTH 2003 ASSETS 3,671 3,671 -
FR CI 721,290 FOURTH 2003 ASSETS 7,534 7,534 -
FR CI 643,830 SECOND 2003 ASSETS 72,310 72,310 -
FR CI 353,270 FOURTH 2003 ASSETS 11,268 11,268 -
FR CI 353,270 FOURTH 2003 ASSETS 11,268 11,268 -
FR CI 445,854 FOURTH 2003 LIABILITIES 8,702 8,702 -
68
35. Contingencies and Restrictions
CONTINGENCIES AND COMMITMENTS
As of March 31, 2003, there is a guarantee delivered in the amount of Th Ch$
18,601,404 (Th Ch$ 15,610,022 in 2002), according to the detail in the
attached chart.
LAWSUITS OR OTHER LEGAL ACTIONS THE COMPANY IS INVOLVED IN
As of March 31, 2003 and 2002 there are pending lawsuits and other legal
actions corresponding to the subsidiary Red Televisiva Megavision, which are
presented in the annexed chart.
RESTRICTIONS
I) SYNDICATED LOAN
In relation to the syndicated loan subscribed with JP Morgan Chase Bank and
other 8 creditor banks for US$ 50 million, the following specific financial
obligations exist:
a) TOTAL CONSOLIDATED DEBT TO CAPITALIZATION RATIO
Cristalerias de Chile S.A will not allow the Total Consolidated Debt to
Capitalization Ratio to exceed the 0.45 to 1.0 ratio at any time.
Capitalization is defined as the sum of Net Worth plus minority interests plus
total consolidated debt.
b) TOTAL CONSOLIDATED DEBT TO EBITDA RATIO
Cristalerias de Chile S.A will not allow the Consolidated Net Debt to EBITDA
relation to exceed the 2.5 to 1.0 ratio at any time.
Consolidated EBITDA is defined as the sum of operating income plus
depreciation and amortization, plus non-cash charges (as long as they have
been deduced when determining operating income) and cash income for interest
minus non-cash credits (as long as they have been aggregated when determining
the operating income), in each case for each period.
c) INTEREST COVERAGE RATIO
Cristalerias de Chile S.A. will not allow the Interest Coverage Ratio to be
lower than 4.0 at any time from January 1st, 2003 onwards.
Interest coverage at the date of determination is defined as the ratio of
non-consolidated EBITDA for the four consecutive quarters that end on, or most
recently ended before, that date and interest expenses for that period.
d) NET EQUITY
Cristalerias de Chile S.A. will maintain a minimum amount of UF 10,000,000.
69
Cristalerias de Chile S.A. complies with 100% of restrictions agreed with the
creditor banks.
II) BOND ISSUE
The bond issue contract signed on May 29, 2002 with Banco Chile as the bond
owner's representative, established the following obligations among others:
a) Financial Indicators
Individual Balance: Indebtedness not higher than 1.2 times.
Consolidate Balance: Indebtedness not higher than 1.4 times.
b) Insurances for fixed assets of the Company and its subsidiaries.
c) Other minor restrictions related with the bond issue contract.
Cristalerias de Chile S.A. complies with 100% of restrictions agreed with the
bonds creditors.
OTHER CONTINGENCIES
As of March 31, 2003 and 2002, management is not aware of any other material
contingencies that could affect the Company.
70
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - DIRECT GUARANTEES
BALANCES PENDING
PAYMENT AS OF
ASSETS COMMITTED CLOSING DATE
CREDITOR OF DEBTOR TYPE OF BOOK OF FINANCIAL STATEMENTS
GUARANTEE NAME RELATIONSHIP GUARANTEE TYPE VALUE 03/31/2003 03/31/2002
--------- ---- ------------ --------- ---- ----- ---------- ----------
EDIFICIO CRISTALERIAS DE COMMERCIAL DEPOSIT FLOOR 7,868 7,868 7,882
METROPOLIS AGF CHILE S.A.
BANCO SANTANDER RED TELEVISIVA
MEGAVISION COMMERCIAL MORTGAGE LAND 3,556,109 2,066,627 2,320,805
SCOTIABANK RED TELEVISIVA MEGAVISION COMMERCIAL PLEDGE TV EQUIP 291,538 2,032,289 2,465,337
BANCO CREDITO E RED TELEVISIVA MEGAVISION COMMERCIAL MORTGAGE TV EQUIP 95,858 504,134 674,742
INVERSIONES
SUNDRY CLIENTS RED TELEVISIVA MEGAVISION COMMERCIAL ADVERTISING 0 12,454,210 10,141,256 0
GRUPO TELEVISA S.A. RED TELEVISIVA MEGAVISION COMMERCIAL PLEDGE SHARE 2,677,236 1,536,276 0
RELEASE OF GUARANTEES
CREDITOR OF DEBTOR
GUARANTEE NAME 03/31/2004 ASSETS 03/31/2005 ASSETS 03/31/2006 ASSETS
--------- ---- ---------- ------ ---------- ------ ---------- ------
EDIFICIO CRISTALERIAS DE 0 0 7,868 0 0 0
METROPOLIS AGF CHILE S.A.
BANCO SANTANDER RED TELEVISIVA
MEGAVISION 47,661 0 454,276 0 454,276 0
SCOTIABANK RED TELEVISIVA MEGAVISION 421,205 0 402,772 0 402,772 0
BANCO CREDITO E RED TELEVISIVA MEGAVISION 168,462 0 167,836 0 167,826 0
INVERSIONES
SUNDRY CLIENTS RED TELEVISIVA MEGAVISION 0 0 0 0 0 0
GRUPO TELEVISA S.A. RED TELEVISIVA MEGAVISION 0 0 0 0 0 0
71
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - INDIRECT GUARANTEES
BALANCES PENDING
PAYMENT AS OF
ASSETS COMMITTED CLOSING DATE
CREDITOR OF DEBTOR TYPE OF BOOK OF FINANCIAL STATEMENTS
GUARANTEE NAME RELATIONSHIP GUARANTEE TYPE VALUE 03/31/2003 03/31/2002
--------- ---- ------------ --------- ---- ----- ---------- ----------
Societe des
Participations
Financieres et
Industrielles RAYEN CURA S.A.I.C. AFFILIATE SOLIDARY 0 0 3,371,028 3,921,547
Envases SMF guarantee CRISTALERIAS DE AFFILIATE SOLIDARY 0 0 329,357 0
P.I.A.S CHILE S.A.
RELEASE OF GUARANTEES
CREDITOR OF DEBTOR
GUARANTEE NAME 03/31/2004 ASSETS 03/31/2005 ASSETS 03/31/2006 ASSETS
--------- ---- ---------- ------ ---------- ------ ---------- ------
Societe des
Participations
Financieres et
Industrielles RAYEN CURA S.A.I.C. 842,757 0 842,757 0 1,685,514 0
Envases SMF guarantee CRISTALERIAS DE 0 0 0 0 329,357 0
P.I.A.S CHILE S.A.
72
CRISTALERIAS DE CHILE S.A.
NOTE 35: Contingencies and Restrictions
Trials
Court Cause Rol No. Origin Procesal Stage Observations Amount (Th Ch$)
----- ------------- ------ -------------- ------------ ---------------
12 3025-1997 Civil Verdicted in first instance Not provisioned 100,000
16 4822-1999 Civil Verdicted in first instance Sight and Verdict pending 10,000
2 2294-1999 Local police Second instance pending Sight and Verdict pending 3,500
1 1242-2000 Labor First instance pending Sight and Verdict pending 10,000
1 3538-2000 Labor First instance pending Sight and Verdict pending Undetermined
73
36. Guarantees obtained from third parties
As of March 31, 2003 and 2002 the company has received guarantees from third
parties that are shown below:
Item
2003 2002
ThCh$ ThCh$
----- -----
Rental of Property BankBoston UF 367.69 0 6,185
Rental of Property to Telecomunicaciones
Cono Sur Ltda. (UF 130) 2,182 2,186
Rental of Property Office 202 AGF Building (UF 365.9) 6,141 3,951
Rental of Property Office Metropolis (UF 189.2) 3,175 0
Rental of Property Office Banco Security 5,102 0
Sight drafts suppliers 1,675 1,288
Installation of Buin Tanks (Tersanoix S.A.) 155,111 161,006
Purchase of vine stem cuttings and plants (Intelmaq) 36,383 36,383
Underground materials storehouse Buin Salfa Montajes 33,044 33,044
------- -------
242,813 244,043
======= =======
74
37. Local and Foreign Currency
The following charts show the foreign currency balance as of March 31, 2003
and 2002.
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY
ASSETS
Items Currency Amount
03-31-2003 03-31-2002
---------- ----------
Available funds Non-adjust. Ch$ 1,147,522 1,951,185
Other currencies 1,638 0
Dollars 537,746 151,328
Euros -50,428 0
Argentine Peso 53,594 6,286
Time deposits Dollars 7,569,134 16,664,575
Adjustable Ch$ 2,911,930 4,393,294
Non-adjust Ch$ 8,934,092 3,130,234
Marketable Securities Adjustable Ch$ 3,830,015 3,388,219
Dollars 64,662,708 10,339,303
Non-adjust Ch$ 26,535 81,720
Sales receivable Non-adjust Ch$ 25,391,410 24,111,084
Dollars 4,041,376 2,303,441
Euros 1,945,188 0
Other currencies 1,476,379 1,863,240
Argentine Peso 217,092 0
Documents Receivable Non-adjust. Ch$ 3,829,140 4,789,186
Dollars 0 7,730
Argentine Peso 0 14,572
Sundry Debtors Non-adjust. Ch$ 343,016 361,207
Adjustable Ch$ 842,716 439,454
Dollars 42,905 30,222
Argentine Peso 75,541 10,255
Other currencies 0 2,519
Documentos and Accts. Receivable Non-adjust. Ch$ 214,311 203,981
Adjustable Ch$ 127,030 303,312
Inventory Adjustable Ch$ 36,851,626 29,188,755
Non-adjust. Ch$ 278,848 141,181
Dollars 3,230,256 2,584,389
Argentine Peso 758,670 259,412
Taxes Receivable Non-adjust. Ch$ 898,842 1,437,755
Adjustable Ch$ 145,935 661,780
Dollars 9,367 0
Argentine Peso 75,186 51,825
Prepaid expenses Adjustable Ch$ 992,818 718,553
Non-adjust. Ch$ 253,435 211,515
Dollars 446,514 122,877
Argentine Peso 21,304 0
Deferred Taxes Non-adjust. Ch$ 675,273 1,349,049
Adjustable Ch$ 262,600 0
Other Current Assets Non-adjust. Ch$ 8,870,424 2,796,916
Adjustable Ch$ 331,541 9,105,997
Dollars 7,722,423 5,928,321
FIXED ASSETS Adjustable Ch$ 131,656,508 133,935,352
Investments in related companies Adjustable Ch$ 108,429,785 99,262,389
Dollars 0 12,123,749
Investments in other companies Adjustable Ch$ 821,513 1,485,663
Negative Goodwill Adjustable Ch$ 4,242,209 3,660,708
Non-adjust. Ch$ 5,439,971 5,400,920
Long-term debtors Adjustable Ch$ 184,616 218,843
Long-term documents receivable. Adjustable Ch$ 1,504 1,380
Intangibles Adjustable Ch$ 11,723,085 11,630,893
Amortization Adjustable Ch$ -1,047,542 -863,954
Other Adjustable Ch$ 937,165 1,349,740
Non-adjust. Ch$ 660,647 12,414
Dollars 14,737,647 10,546,573
Argentine Peso 0 208,040
Total Assets
Non-adjust. Ch$ 56,963,466 45,978,347
Other currencies 1,478,017 1,865,759
Dollars 103,000,076 60,802,508
Euros 1,894,760 0
Argentine Peso 1,201,387 550,390
Adjustable Ch$ 303,245,054 298,880,378
75
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY
CURRENT LIABILITIES
ITEM Currency Up to 90 days
03.31.2003 03.31.2002
Amount Avg.Annual Amount Avg.Annual
Thou Ch$ Int. Rate Thou Ch$ Int. Rate
-------- --------- -------- ---------
Current Liabilities
Short-term obligations with banks Adjust. Ch$ 0 0 0 7.480
and financial institutions Non-adjust. Ch$ 0 0 1,048,088 6.360
Argentine Peso 2,457 0 4,451 0
Long-term obligations with banks Adjust. Ch$ 0 0 2,397,894 7.480
and financial institutions Dollars 445,744 0 20,399,494 3.375
Non-adjust. Ch$ 134,403 2.450 0 0
Long-term obligations with 1 year Adjust. Ch$ 1,244 7.00 0 0
maturity Dollars 56,142 11.020 148,152 3.375
Obligations with the public Adjust. Ch$ 962,571 6.250 223,904 6.250
Dividends payable Non-adjust. Ch$ 78,554 0 70,475 0
Accounts payable Dollars 1,079,577 0 864,305 0
Non-adjust. Ch$ 15,852,042 0 8,955,289 0
Other currencies 0 0 15,439 0
Euros 0 0 2,689 0
Argentine Peso 0 0 47,335 0
Documents Payable Adjust. Ch$ 0 0 57,042 0
Dollars 4,221,000 0 2,804,490 0
Euros 376,419 0 407,390 0
Other currencies 0 0 317,290 0
Sundry Creditors Non-adjust. Ch$ 643,385 0 557,626 0
Dollars 2,306,722 0 0 0
Provisions Adjust. Ch$ 3,030 0 140,123 0
Non-adjust. Ch$ 6,367,243 0 7,034,811 0
Dollars 757,812 0 1,483,421 0
Argentine Peso 83,925 0 4,316 0
Euros 525,601 0 0 0
Other currencies 426,770 0 450,774 0
Withholdings Non-adjust. Ch$ 1,766,542 0 2,075,454 0
Prepaid income Non-adjust. Ch$ 2,534,105 0 1,736,381 0
Other Current Liabilities Dollars 1,112,135 0 4,123,801 0
Non-adjust. Ch$ 0 0 33,963 0
Docts and accts payable to rel co. Adjust. Ch$ 42,718 5.650 375,909 7.240
Non-adjust. Ch$ 168,234 0 3,768 0
Dollars 0 0 0 0
Total Current Liabilities
- Adjust. Ch$ 1,009,563 - 3,194,872 -
- Non-adjust Ch$ 27,544,508 - 21,515,855 -
- Argentine Peso 86,382 - 56,102 -
- Dollars 9,979,132 - 29,823,663 -
- Other currencies 426,770 - 783,503 -
- Euros 902,020 - 410,079 -
ITEM 90 Days to 1 Year
03.31.2003 03.31.2002
Amount Avg.Annual Amount Avg.Annual
Currency Thou Ch$ Int. Rate Thou Ch$ Int. Rate
-------- -------- --------- -------- ---------
Current Liabilities
Short-term obligations with banks Adjust. Ch$ 0 0 0 7.480
and financial institutions Non-adjust. Ch$ 0 0 0 0
Argentine Peso 7,370 0 0 0
Long-term obligations with banks Adjust. Ch$ 1,373,808 0 759,373 7.480
and financial institutions Dollars 2,288,392 2.020 2,341,130 4.330
Non-adjust. Ch$ 134,403 2.450 0 0
Long-term obligations with 1 year Adjust. Ch$ 0 0 3,097 7.00
maturity Dollars 205,129 11.00 124,308 11.00
Obligations with the public Adjust. Ch$ 361,008 6.250 359,670 6.250
Dividends payable Non-adjust. Ch$ 0 0 0 0
Accounts payable Dollars 2,101,413 0 353,556 0
Non-adjust. Ch$ 94,640 0 0 0
Other currencies 0 0 0 0
Euros 0 0 0 0
Argentine Peso 0 0 0 0
Documents Payable Adjust. Ch$ 33,070 0 58,961 0
Dollars 164,108 0 367,360 0
Euros 0 0 0 0
Other currencies 0 0 0 0
Sundry Creditors Non-adjust. Ch$ 0 0 0 0
Dollars 0 0 0 0
Provisions Adjust. Ch$ 171,373 0 144,068 0
Non-adjust. Ch$ 151,631 0 114,493 0
Dollars 1,170,334 0 1,157,402 0
Argentine Peso 0 0 0 0
Euros 0 0 0 0
Other currencies 0 0 0 0
Withholdings Non-adjust. Ch$ 0 0 0 0
Prepaid income Non-adjust. Ch$ 0 0 0 0
Other Current Liabilities Dollars 0 0 0 0
Non-adjust. Ch$ 0 0 0 0
Docts and accts payable to rel co. Adjust. Ch$ 0 0 571,648 7.240
Non-adjust. Ch$ 0 0 0 0
Dollars 0 0 343,899 0
Total Current Liabilities
- Adjust. Ch$ 1,939,259 - 1,896,817 -
- Non-adjust Ch$ 380,674 - 114,493 -
- Argentine Peso 7,370 - 0 -
- Dollars 5,929,376 - 4,687,655 -
- Other currencies 0 - 0 -
- Euros 0 - 0 -
76
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY
LONG-TERM LIABILITIES CURRENT PERIOD 03-31-2003
ITEM 1-3 Years 3-5 years
Amount Average Amount Average
Currency Thou Ch$ Interest Rate Thou Ch$ Interest Rate
-------- -------- ------------- -------- -------------
Obligations with Banks and Dollars 2,801,667 2.82 36,846,805 0
Financial Institutions Argentine Peso 48,569 0 12,228 0
Adjustable Ch$ 4,117,845 3.79 629,910 3.79
Obligations with the public Adjustable Ch$ 3,356,720 6.09 0 0
Adjustable Ch$ 0 0 0 0
Documents Payable Dollars 113,392 0 0 0
Non-adjust. Ch$ 14,102 0 0 0
Docts Payable to related co. Adjustable Ch$ 0 0 0 0
Long-term creditors Dollars 0 0 0 0
Adjustable Ch$ 0 0 0 0
Sundry creditors Adjustable Ch$ 3,525 7 0 0
Dollars 1,060,574 11.21 2,464 10.93
Argentine Peso 21,370 0 0 0
Long-term provisions Dollars 2,098,052 0 0 0
Adjustable Ch$ 3,965,228 0 0 0
Deferred taxes Non-adjust. Ch$ 4,333,761 0 0 0
Adjustable Ch$ 0 0 0 0
Total long-term liabilities
- Dollars 6,073,685 - 36,849,269 -
- Argentine Peso 69,939 - 12,228 -
- Adjustable Ch$ 11,443,318 - 629,910 -
- Non-adjust. Ch$ 4,347,863 - 0 -
ITEM 5-10 Years More than 10 years
Amount Average Amount Average
Currency Thou Ch$ Interest Rate Thou Ch$ Interest Rate
-------- -------- ------------- -------- -------------
Obligations with Banks and Dollars 0 0 0 0
Financial Institutions Argentine Peso 0 0 0 0
Adjustable Ch$ 0 0 0 0
Obligations with the public Adjustable Ch$ 33,567,200 4.75 16,783,600 6.05
Adjustable Ch$ 0 0 35,245,560 5.8
Documents Payable Dollars 0 0 0 0
Non-adjust. Ch$ 0 0 0 0
Docts Payable to related co. Adjustable Ch$ 0 0 0 0
Long-term creditors Dollars 0 0 0 0
Adjustable Ch$ 0 0 0 0
Sundry creditors Adjustable Ch$ 0 0 0 0
Dollars 0 0 0 0
Argentine Peso 0 0 0 0
Long-term provisions Dollars 0 0 0 0
Adjustable Ch$ 0 0 0 0
Deferred taxes Non-adjust. Ch$ 0 0 0 0
Adjustable Ch$ 0 0 0 0
Total long-term liabilities
- Dollars 0 - 0 -
- Argentine Peso 0 - 0 -
- Adjustable Ch$ 33,567,200 - 52,029,160 -
- Non-adjust. Ch$ 0 - 0 -
77
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY
LONG-TERM LIABILITIES PERIOD PREVIOUS 03-31-2002
ITEM 1-3 Years 3-5 years
Amount Average Amount Average
Currency Thou Ch$ Interest Rate Thou Ch$ Interest Rate
-------- -------- ------------- -------- -------------
Obligations with banks Dollars 4,221,912 4.32 0 0
and financial institutions Argentine Peso 59,212 5.26 0 0
Dollars 38,904,240 2.675 9,726,060 0
Adjustable Ch$ 3,214,444 7.48 806,963 7.48
Documents payable Adjustable Ch$ 38,003 0 0 0
Deferred Custom Duty Dollars 407,458 11.06 763,323 11.06
Obligations with public Dollars 420,340 6.3 3,362,634 6.29
Sundry creditors Adjustable Ch$ 3,627 7 1,209 7
Dollars 241,011 11 4,806 11
Long-term creditors Adjustable Ch$ 59,716 0 0 0
Dollars 173,066 0 0 0
Long-Term provisions Dollars 3,424,202 0 0 0
Adjustable Ch$ 3,740,779 0 0 0
Deferred taxes Adjustable Ch$ 2,374,282 0 0 0
Total long-term liabilities
- Dollars 47,792,229 - 13,856,823 -
- Argentine Peso 59,212 - 0 -
- Adjustable Ch$ 9,430,851 - 808,172 -
ITEM 5-10 Years More than 10 years
Amount Average Amount Average
Currency Thou Ch$ Interest Rate Thou Ch$ Interest Rate
-------- -------- ------------- -------- -------------
Obligations with banks Dollars 0 0 0 0
and financial institutions Argentine Peso 0 0 0 0
Dollars 0 0 0 0
Adjustable Ch$ 0 0 0 0
Documents payable Adjustable Ch$ 0 0 0 0
Deferred Custom Duty Dollars 0 0 0 0
Obligations with public Dollars 0 0 16,813,161 6.29
Sundry creditors Adjustable Ch$ 0 0 0 0
Dollars 0 0 0 0
Long-term creditors Adjustable Ch$ 0 0 0 0
Dollars 0 0 0 0
Long-Term provisions Dollars 0 0 0 0
Adjustable Ch$ 0 0 0 0
Deferred taxes Adjustable Ch$ 0 0 0 0
Total long-term liabilities
- Dollars 0 - 16,813,161 -
- Argentine Peso 0 - 0 -
- Adjustable Ch$ 0 - 0 -
78
38. Penalties
The SVS and other administrative authorities have not imposed any penalties
during the 2003 and 2002 fiscal years.
79
39. Subsequent Events
On April 15, 2003 the Regular General Shareholders Meeting reached the
following agreements:
a) ANNUAL REPORT AND BALANCE AS OF DECEMBER 31, 2002
The Annual Report, balance and fiscal year income ended December 31, 2002 were
approved.
b) DEFINITIVE DIVIDEND No 153 DISTRIBUTION
The distribution of final dividend No. 153 of Ch$86.35 per share was approved.
The dividend was paid to registered shareholders starting on April 28, 2003
through Banco Bice.
c) DIVIDEND POLICY
The Board approved to distribute 40% of the fiscal year net income and credit
to reserve the remaining in order to maintain the Company's growth.
On the other hand the Board was authorized to grant interim dividends with
charge to fiscal years' net income, and to distribute eventual dividends, with
charge to future dividends fund, without having to summon a new general
shareholders meeting. Such distribution would take place as long as the
country's and the Company's economic situation would alow it.
d) BOARD ELECTION
An election of the Board was carried out, which is now integrated by: Mr.
Ricardo Claro Valdes, Mr. Jaime Claro Valdes, Mr. Joaquin Barros Fontaine, Mr.
Patricio Claro Grez, Mr. Gustavo de la Cerda Acuna, Mr. Cristian Eyzaguirre
Johnston, Mr. Juan A. Figueroa Yavar, Mr. Patricio Garcia Dominguez, Mr.
Baltazar Sanchez Guzman, and Mr. Alfonso Swett Saavedra.
In a Board sesion carried out following the shareholders meeting Mr. Ricardo
Claro Valdes was appointed Chairman of the Company and Mr. Baltazar Sanchez
Guzman was appointed Vice-Chairman of the Company.
e) EXTERNAL AUDITORS DESIGNATION
According to Art. No 52 of the law 18,046 the shareholders meeting appointed
Ernest & Young Ltda., as external auditors for year 2003.
e) NEWSPAPER DESIGNATION
According to Art. No 59 of Public Companies, the newspaper in which
shareholders meeting summons would be effected was designated. "El Diario
Financiero" was designated for this effect.
g) BOARD COMMITTEE
In board session effected following the regular general shareholders meeting
the board committee members were elected, according to Art. No 50 bis Act
18,046. The independent
80
directors named were Mr. Joaquin Barros Fontaine and Mr. Patricio Claro Grez,
and as a representative director of the controlling group Mr. Juan A.
Figuieroa Yavar.
Since the date of the closing of financial statements and the date of issue of
the present report no subsequent events that could significantly affect the
Company's financial and economic situation have been registered.
S.A. VINA SANTA RITA
On April 11, 2003 the Regular General Shareholders Meeting was effected. The
following agreements were reached:
The payment of final dividend No. 13 of Ch$3.05 per share corresponding to
fiscal year 2002's net income was agreed, to be paid on April 28, 2003.
It was agreed to maintain the Board's compensation in force, and whichn is
equivalent to 2% of net income, and which is distributable among the totality
of the Board's members. The amount corresponding to the President will be
twice the amount that will correspond to a Director with the same seniority.
Ernst&Young Servicios Profesionales de Auditorias y Asesorias Ltda., was
appointed as external auditors, or in case of not being the former, Price
Waterhouse or Deloitte & Touche. The Board is entitled to designate, among
these, the external auditors to be hired depending on which one is the best
economic alternative for Vina Santa Rita, and that at the same time at the
date of hiring the auditing firm is registered under the Securities and
Exchange Commission (SEC).
Fitch Chile Clasificadora de Riesgo Ltda. and Clasificadora de Riesgo
Humphreys Ltda. were designated to classify the bonds issued by the Company.
In addition, it was agreed that the Company voluntarily maintains its shares
classified, using for this effect the same companies used to classify its
bonds.
It was agreed that announcements for Shareholders Meetings were made in "El
Diario Financiero" newspaper, or if this is not possible, in the "La Segunda"
newspaper.
It was agreed that at least 30% of net income would be distributed as
dividends, either interim or final, as long as there are no accumulated
losses.
It was agreed that 2UTM (Chilean Unidades Tributarias Mensuales), with a
maximum of 10 UTM per month, would be paid as compensation for assitance to
each session that the Committee realices, to each of the integrants assisting.
UF 586 per year were approved as budget for year 2003 to finance the Board
Committee working expenses, including the honoraries of advisors that the
Board might hire. In addition, the Board is entitled to designate
supplementary funds if needed, informing about it in the next General
Shareholders Meeting.
81
40. COMPANIES SUBJECT TO SPECIAL NORMS
Not applicable
82
41. ENVIRONMENT
As of March 31, 2003, no expenses have been recorded for this concept.
Nevertheless, the Company, in line with its constant concern about the
environment preservation effected investments for ThCh$163,452 as of March 31,
2002, to repair an electrostatic precipitator, whichs function is to filter
gases emitted by our smelting processes. This makes it possible for the
Company to ensure that it fulfills particulate matter discharge norms issued
by the controlling agencies.
The subsidiary S.A. Vina Santa Rita has invested Th Ch$ 4,561 as of March 31,
2003 ( ThCh$2,399 in 2002) to comply with the ordinances and laws related to
Industrial Process and Installations.
83
42. STOCK TRANSACTIONS
During 2003 and 2002 members of the Board, majority shareholders, related
individuals and entities did not carry out stock transactions.
84
43. DISTRIBUTION OF SHAREHOLDERS
The distribution of shareholders as of March 31, 2003 and 2002 is the
following:
% of Shareholding No. of Shareholders
TYPE OF SHAREHOLDER 2003 2002 2003 2002
------------------- ---- ---- ---- ----
10% or more shareholding 34.03 34.03 1 1
Less than 10% shareholding
with investment equal to or
higher than 200 UF 65.82 65.81 261 261
Less than 10% shareholding
with investment lower than
200 UF 0.15 0.16 815 831
TOTAL 100.00 100.00 1,077 1,093
CONTROLLER OF
THE COMPANY 52.14 52.14 3 3
85
44. BOARD REMUNERATIONS
During the first half of 2003 and 2002, Th Ch$ 1,086,756 and Th Ch$ 917,343
respectively were paid and provisioned for honoraries and participation
according to the following detail:
2003 2002
ThCh$ ThCh$
----- -----
Share of previous fiscal year profits 890,581 888,777
Provision of fiscal year 196,057 28,093
Fees paid 118 473
--------- -------
TOTAL 1,086,756 917,343
========= =======
86
45. TIME DEPOSITS
2003 2002
INSTITUTION CURRENCY Th$ Th$
----------- -------- ---- ----
Banco de Santiago US$ 73,355 0
Banco J.P. Morgan Chase Bank US$ 341,299 0
Banco Deutsche Bank Chile S.A. US$ 2,064,301 0
Banco Santander US$ 2,423,315 0
Banco de Chile US$ 2,606,863 0
Banco de Credito e Inversiones US$ 0 5,926,878
Corp Banca US$ 0 2,103,330
Banco Santiago. UF 0 1,120,897
HSBC Bank Chile $ 2,910,728 0
Banco Santiago $ 0 5,478,252
Banco Scotiabank $ 5,009,100 8,634,367
Banco de Chile $ 3,001,203 0
Banco de Santander $ 924,992 924,379
---------- ----------
TOTAL 19,415,156 24,188,103
========== ==========
87
RATIO ANALYSIS
CRISTALERIAS DE CHILE S.A.
RATIO ANALYSIS OF THE CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2003
AND 2002
1.- CONSOLIDATED FINANCIAL INDICATORS
03-31-2003 03-31-2002 12-31-2002
---------- ---------- ----------
LIQUIDITY
Current liquidity times 3.94 2.07 4.51
Acid ratio times 3.1 1.48 3.61
INDEBTEDNESS
Leverage ratio times 0.82 0.68 0.80
Short-term debt % 24.90 41.30 21.30
Long-term debt % 75.10 58.70 78.70
Interest expenses coverage times 4.43 1.78 4.81
ACTIVITY
Total assets MM Ch$ 467,783 408,077 454,741
Investments MM Ch$ 6,455 4,172 18,138
Disposal of property MM Ch$ 176 8 238
Inventory turnover Times n.a. n.a. n.a.
Inventory permanence Days n.a. n.a. n.a.
RESULTS
Sales MM Ch$ 35,372 31,232 161,863
Cost of sales MM Ch$ 22,553 19,660 95,252
Operating Income MM Ch$ 7,435 6,711 41,818
Interest expenses MM Ch$ 1,713 1,277 6,874
Non-operating income (loss) MM Ch$ (1,052) (5,077) (13,067)
E.B.I.T.D.A. MM Ch$ 11,205 5,768 47,352
After-tax Income MM Ch$ 4,321 183 17,749
Profitability
Return on equity % 1.8 0.08 7.9
Return on assets % 0.9 0.04 4.1
Return on operating assets % 3.4 3.10 19.3
Profit per share $ 67.5 2.85 277.3
Return on dividends % 2.6 3.20 2.9
Current liquidity Ratio of current assets to current liabilities.
Acid ratio: Ratio of uncommitted funds to current liabilities.
Debt ratio: Ratio of total current liabilities to net worth.
Interest Expenses Coverage: Result before taxes and interest divided by
financial expenses.
Inventory turnover: Ratio between sales cost of the period and average
inventory.
Inventory permanence: Ratio between average inventory and sales cost of
the period, multiplied by 360 days.
E.B.I.T.D.A.: Earnings before interest, taxes, depreciation and
amortization, and special items.
Return on dividends: Sum of dividends paid in the last twelve months
divided by market price of stock at closing of
period.
88
The main trends observed in fiscal year 2003 indicators are:
LIQUIDITY INDICES
An important increase in the index can be observed due to the payment of
short-term bank debt, to the renegotiation of 50% of the syndicated loan, and
that part of the funds obtained from the placement of bonds was invested in
short-term financial instruments.
A slight decrease of the indeces is observed with respect to December, since
there was an increase in short-term liabilities.
INDEBTEDNESS INDICES
Leverage increases with respect to March 2002, due to the placement of
long-term bonds in August 2002, which increased liabilities, and that was
partially compensated by the prepayment of US$50 million of the syndicated
loan.
The distrubution between short and long-term debt shows a decrease in
short-term debt due to financing decisions carried out in fiscal year 2002,
that culminated with the restructuring of the syndicated loan.
The interest expenses coverage index slightly decreased with respect to the
previous year due to higher interest expenses originated by the bond issue
from the month of August 2002 onwards.
PROFITABILITY INDICES
The equity and asets profitability indices show an increase respect to the
first quarter 2002, due to a higher net income in the present period, as a
consequence of higher operating income from higher sales and a lower
non-operating loss due to lower losses in subsidiaries.
The dividend return index shows a decrease due to the increase of the price of
the Company's shares in the stock exchange value, and due to lower dividens
paid during the last twelve months.
2. DIFFERENCE BETWEEN BOOK VALUE AND MARKET VALUE OF MAIN ASSETS.
The financial statements as of March 31, 2003 have been prepared according to
generally accepted accounting principles and general and specific norms of the
Securities and Insurance Commission, which is the agency that regulates the
Company. The valuation of the assets includes adjustment for currency
devaluation, provisions, and technical revaluations. We believe the foregoing
is a reasonable way to value the company's permanent investments.
As of March 31, 2003 there were financial investments in shares recorded
according to their acquisition price of Ch$ 3,830 million, whose market value
on the same date was Ch$ 5,802 million. Likewise, there are Ch$ 64,689 million
recorded as fixed rate maketable securities recorded, whose market value
reached Ch$ 65,122 million.
89
3. RESULTS AS OF MARCH 2003
3a. Consolidated Result
Cristalerias de Chile S.A. consolidates its results with Vina Santa Rita,
CIECSA, Cristalchile Comunicaciones S.A., Cristalchile Inversiones S.A. and
Apoger.
Cristalerias' consolidated sales reached Ch$ 35,372 million, a 13.3% increase
over 2002. This sales increase results from higher sales in the glass
container business (11.4%), Santa Rita (12.8%) and CIECSA (15.0%).
Consolidated operating income reached CH$ 7,435 million, a 10.8% increase, of
which Ch$ 5,850 million corresponded to the glass container business and Ch$
1,650 million to Santa Rita. CIECSA, in turn, registered a Ch$ 116 million
operating loss.
Net profit was Ch$ 4,321 million, compared with Ch$ 183 million in 2002. This
is mainly explained by better operting results loss at Cristalchile and Santa
Rita, a lower non-operating loss due to better results at subsidiaries and
higher income from exchange differences.
During 2003 the Company registered a lower non-operating loss of Ch$ 1,052
million, compared with a Ch$ 5,077 million non-operating loss in 2002. The
Company recorded a lower net loss from subsidiaries that do not consolidate
that went from Ch$ 3,939 million in 2002 to Ch$ 1,101 million in 2003 due to a
lower loss in Cristalchile Comunicaciones (owner of 50% of Metropolis) and
Cristalchile inversiones S.A. (owner of 40% of Rayen Cura). In addition, the
Company registered a higher income from exchange diferences (Ch$ 1,662 million
in 2003 v/s a Ch$ 10 million loss in 2002). The net loss from subsidiaries
includes a Ch$ 1,034 million charge in 2003 (CH$ 1,041 million in 2002),
corresponding to goodwill, which does not constitute cash flow.
The following analysis explains Cristalerias' result based on individual
financial statements, as well as those of its main subsidiaries.
3b. Individual Result
The Company had non-consolidated sales of Ch$17,448 million as of March 2003,
which represents a 11.4% increase compared to the previous period. Volumes
sold increased by 8.1%, reaching 58,267 tons. This volume level is mainly due
to higher sales of bottles for the wine and non-returnable beer markets.
Operating income rose by 13.7%, reaching Ch$5,850 million due to a higher
sales volume.
The Company's net income reached Ch$ 4,321 million, compared to Ch$ 183
million in 2002. This result is partially explained by a higher operating
income, and mainly by the non-operating income, that passed from a Ch$4,112
million loss in 2002 to a Ch$499 million loss in 2003. During 2003 a higher
income wqas registered from Cristalchile Inversiones, Vina Santa Rita and
Envases CMF, a positive exchange rate difference of Ch$ 1,336 million and a
lower loss in Cristalchile Comunicaciones (Ch$ 1,505 million in 2003 and Ch$
2,482 million in 2002). Additionally, a higher loss was registered from CIECSA
(Ch$ 437 million in 2003, Ch$ 256 million in 2002) and higher interest
expenses that reached Ch$ 1,235 million (Ch$ 673 million in 2002).
3c. Result in Subsidiaries
In 2003, Santa Rita's net income reached Ch$ 1,205 million, 14.2% over 2002.
In the local market, the Company attained volumes that were 10.6% higher than
in year 2002. Prices in this market dropped by 5.6% in real terms, as a result
of increased competition and lower cost of musts. Sales in the local market
increased by 4.5%. Volume sales in the export market increased by 4.0% due to
higher sales to the Canadian and Latin American markets. During the period,
exports represented 54.5% of total revenues in the amount of US$ 11 million.
The operating income increased by 6.6%, reaching Ch$1.650 million, mainly as a
result of the increase in volumes in the export and local markets and the
depreciation of the Chilean Peso vs. the U.S. Dollar. The average price in
dollars per case of Santa Rita for the export market was US$ 31.4, whereas the
average price for the industry was US$23.5 per case. Santa Rita's
non-operating income was Ch$24 million, compared to a Ch$271 million
non-operating loss in 2002.
Red Televisiva Megavision, CIECSA's main subsidiary, registered a Ch$90
million operating loss, compared with an operating income of Ch$43 million in
2002, due to higher internal productions that resulted in increased costs.
MEGA reached a 22.9% audience share during the period(21.7% in 2002)1. Net
sales increased by 15.0% reaching Ch$ 4,329 million, due to an increase in
live programming, which has resulted in higher audience levels. As of March
2003, MEGA had a net loss of Ch$248 million, compared to a loss of Ch$194
million in 2002. CIECSA had a Ch$445 million net loss, compared to a Ch$266
milllion net loss in 2002.
Envases CMF S.A. registered a Ch$545 million net income in 2003 compared with
a Ch$292 million net income in 2002. The company increased net sales by 1.1%,
reaching Ch$ 8,857 million during the quarter. Sales volume dropped by 2.5%,
reaching 6,092 tons. Operating income reached Ch$1,174 million, 38.9% higher
than in 2002, mainly explained by sales of better margin products as well as
improved operating efficiencies. At the non-operating level the company passed
from a Ch$544 million loss in 2002 to a loss of Ch$357 million in 2003.
In the cable TV business, Cristalchile Comunicaciones S.A. (99.99% owned by
Cristalerias), is the owner of 50% of Cordillera Comunicaciones Ltda., which
in turn is the owner of 99.99% of Metropolis-Intercom S.A.
At March 31, 2003, Metropolis-Intercom S.A. registered sales of Ch$10,781
million compared with Ch$11,808 million during the same period the previous
year. As of March 2003, Metropolis-Intercom had a net loss of Ch$1,973 million
compared with a net loss of Ch$3,921 million in 2002. This result includes a
depreciation charge of Ch$3.204 million (Ch$2,772 million in 2002)
corresponding to the HFC network adquired in July 2000. The company ended the
period with 240,000 subscribers, a 2,9% lower compared with the same date in
2002, due to a greater number disconnections due to the deteriorated domestic
economic situation.
As a result of the abovementioned and the negative goodwill amortization
charge through Cordillera Comunicaciones of Ch$1,034 million in the period
(Ch$1,041 million in 2002), Cristalchile Comunicaciones recorded a net loss of
Ch$1,505 million (net loss of Ch$2,482 million in 2002).
90
4. CASH FLOW STATEMENT
Through January-March 2003, a total net positive flow of Ch$ 8,270 million was
generated, which is explained by a positive flow generated by operating
activities of Ch$ 14,616 million which were partially offset by a negative
financing flow of Ch$ 2,155 million, and a negative flow of investment
activities of Ch$4,191 million.
The operating flow corresponds basically to the collection of sales and
financial interests and other income received that were reduced in part by
payment to suppliers, taxes and interests.
The negative financing flow can be explained mainly by dividends paid by Ch$
1,347 million and net loans for Ch$ 845 million.
The negative investment flow is mainly explained by the incorporation of fixed
assets of Ch$ 7,065 million, which are financed with future purchase for Ch$
1,762 million and redemption loans for Ch$ 969 million of related companies.
The foregoing results in an increase in the final balance of cash and cash
equivalent, which passed from Ch$ 93,763 million as of December 31, 2002 to
Ch$ 101,647 million as of March 31, 2003.
According to the current regulations of the SVS and the Association of
Accountants of Chile, term deposits and agreements with due date less than 90
days have been considered cash and cash equivalent.
5. INTEREST RATES AND EXCHANGE RATE RISK ANALYSIS
o INTEREST RATES
Cristalerias and its Subsidiaries are exposed to the risk of fluctuations in
interest rates on its short-term and long-term debts. As of March 31, 2003
Short-Term and Long-Term bank liabilities and obligations with the public
totaled Ch$ 139,120 million, which represents 29.7% of the Company's
consolidated assets.
Bank credits totaled Ch$ 48,843 million, Ch$ 41,576 million of which
correspond to credits in foreign currency agreed at variable rates related to
the six-month Libor, Ch$ 6,121 million correspond to credits in pesos
adjustable in unidades de fomento (indexed currency units) that are exposed to
changes in the six-month TAB rate, and Ch$1,075 million correspond to credits
in pesos at an annual rate of 4.94%. and Ch$71 million for credit in Argentine
Pesos.
As of March 31, 2003, the Company had funds available of Ch$ 100,552 million
invested in instruments at different time periods like term deposits, bonds,
fixed-rate mutual funds and resale agreements. That amount does not include
Bonds for Ch$9,988 million with maturity on September 15, 2005 and investment
in shares for Ch$ 3,830 million.
The Company and its subsidiaries do not use secondary financial instruments at
the present time to reduce risk in the event of fluctuations in interest
rates. That policy will be studied permanently to evaluate the alternatives
offered by the market.
o EXCHANGE RATE
The Company and its subsidiaries maintains liabilities in foreign currency for
the equivalent to US$ 81.0 million, which represents 12.9% of its consolidated
assets, and
91
which include a long-term syndicated loan of US$ 50 million of the Parent
Company and Long-Term bank credits in Vina Santa Rita of US$ 7.1 million.
As of March 31, 2003 the Company and its Subsidiaries maintain its investments
in Dollars of US$ 122.7 million; in time deposits, bonds and fixed rate mutual
funds. In addition it also has Dollar purchase future contracts of US$131.2
million.
On the other hand, aproximately 39% of the Company's consolidated sales are
adjusted to the exchange rate variation. At the same time, consolidated costs
in foreing currency represent aproximately 27% of total costs.
92
RELEVANT EVENTS
As of March 31, 2003 there have not been registered events in this item.
--------
1 Measured between 7:30 A.M. and 1:30 A.M. (i.e.:18 hours daily) from
Monday through Sunday.
FECU (Standardized Quarterly Financial Report)
1. IDENTIFICATION
1.01.05.00 Firm Name
CRISTALERIAS DE CHILE S.A.
1.01.04.00 Company RUT 90331000-6
1.00.01.10 Starting date 1/1/2003
1.00.01.21 Closing date 3/31/2003
1.00.01.30 Type of Currency Chilean Pesos
1.00.01.40 Type of Financial Statements Individual
ASSETS
2.0 FINANCIAL STATEMENTS
2.01 BALANCE SHEET
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Individual
ASSETS NOTE No. 03-31-03 03-31-02
------ -------- -------- --------
5.11.00.00 TOTAL CURRENT ASSETS 111,227,932 64,324,831
5.11.10.10 Cash 975,794 1,753,295
5.11.10.20 Time deposits 41 16,429,870 17,691,480
5.11.10.30 Marketable securities (net) 4 59,218,019 13,782,202
5.11.10.40 Debtors from sales (net) 5 15,630,357 14,457,887
5.11.10.50 Documents receivable (net) 5 1,785,525 2,687,538
5.11.10.60 Sundry debtors (net) 5 978,504 467,285
5.11.10.70 Doc. & accts receivable 6 2,461,660 2,687,634
related Co.
5.11.10.80 Inventories (net) 7 5,944,490 6,280,535
5.11.10.90 Recoverable taxes 8 853,045 1,387,263
5.11.20.10 Prepaid expenses 398,419 261,627
5.11.20.20 Deferred taxes 8 474,170 748,117
5.11.20.30 Other current assets 10-11 6,078,079 2,119,968
5.11.20.40 Leasing contracts (net) 0 0
5.11.20.50 Leasing assets (net) 0 0
5.12.00.00 TOTAL FIXED ASSETS 72,895,740 74,262,839
5.12.10.00 Land 12 1,497,493 1,495,610
5.12.20.00 High rises & infrastructure 12 22,076,137 17,490,948
5.12.30.00 Machinery & equipment 12 85,435,389 93,388,850
5.12.40.00 Other fixed assets 12 14,077,566 9,207,172
5.12.50.00 Positive goodwill from
technical revaluation of fixed 12 7,675,631 8,566,806
assets
5.12.60.00 Depreciation (minus) 12 (57,866,476) (55,886,547)
5.13.00.00 TOTAL OTHER ASSETS 182,381,340 176,616,960
5.13.10.10 Investment in related companies 14 144,225,456 143,385,736
5.13.10.20 Investment in other companies 0 0
5.13.10.30 Negative goodwill 16 2,011,178 2,178,997
5.13.10.40 Positive goodwill (minus) 0 0
5.13.10.50 Long-term debtors 5 161,203 186,310
5.13.10.60 Doc. & accts receivable 6 22,598,303 21,253,711
related Co.
5.13.10.65 Long-term deferred taxes 0 0
5.13.10.70 Intangibles 0 0
5.13.10.80 Amortization (minus) 0 0
5.13.10.90 Other 18 13,385,200 9,612,206
5.13.20.10 Long-term leasing
contracts (net) 0 0
5.10.00 TOTAL ASSETS 366,505,012 315,204,630
LIABILITIES
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Individual
LIABILITIES NOTE No. 03-31-03 03-31-02
----------- -------- -------- --------
5.21.00.00 TOTAL CURRENT LIABILITIES 15,342,195 36,134,431
5.21.10.10 Short-term oblig. Banks & Fin. Inst. 0 0
5.21.10.20 Short-term portion - Long-term
oblig. Banks & Financial Institutions 19 445,744 19,554,244
5.21.10.30 Obligations with the public (notes) 0 0
5.21.20.40 Short-term portion oblig with public 748,203 0
5.21.10.50 Long-term oblig. due within 1 year 0 0
5.21.10.60 Dividends payable 77,453 69,650
5.21.10.70 Accounts payable 2,127,914 1,893,690
5.21.10.80 Notes payable 4,142,922 2,538,315
5.21.10.90 Sundry creditors 1,357,827 494,856
5.21.20.10 Notes & accts payable related Co. 6 146,591 263,104
5.21.20.20 Provisions 23 4,653,758 6,690,113
5.21.20.30 Withholdings 743,989 977,809
5.21.20.40 Income tax 0 0
5.21.20.50 Earned income 0 0
5.21.20.60 Deferred taxes 0 0
5.21.20.70 Other current liabilities 20 897,794 3,652,650
5.22.00.00 TOTAL LONG-TERM LIABILITIES 114,076,231 58,173,623
5.22.10.00 Oblig with Banks & Financial 21 36,578,000 48,630,300
Inst.
5.22.20.00 Long-term oblig with public 68,812,760 0
(bonds)
5.22.30.00 Long-term notes payable 0 0
5.22.40.00 Long-term sundry debtors 242,381 1,230,497
5.22.50.00 Long-term notes & accts.
payable related companies 6 0 0
5.22.60.00 Long-term provisions 23 6,063,280 7,164,981
5.22.70.00 Long-term deferred taxes 8 2,379,810 1,147,845
5.22.80.00 Other long-term liabilities 0 0
5.23.00.00 MINORITY INTEREST 0 0
5.24.00.00 TOTAL EQUITY 237,086,586 220,896,576
5.24.10.00 Paid-in capital 27 64,749,257 65,252,164
5.24.20.00 Reserve capital revaluation 27 323,746 (261,008)
5.24.30.00 Premium in sale of own shares 27 27,736,385 27,701,498
5.24.40.00 Other reserves 27 10,040,408 8,314,353
5.24.50.00 Retained earnings (addition of codes
5.24.51.00 to 5.24.56.00) 27 134,236,790 119,889,569
5.24.51.00 Reserve future dividends 27 115,487,218 106,277,626
5.24.52.00 Accrued profits 27 14,428,510 13,556,728
5.24.53.00 Accrued losses (minus) 0 0
5.24.54.00 Profit (loss) for the year 27 4,321,062 182,511
5.24.55.00 Prov. dividends (minus) 0 0
5.24.56.00 Accr. deficit dev. period 27 0 (127,296)
5.20.00.00 TOTAL LIABILITIES 366,505,012 315,204,630
INCOME STATEMENT
2.02 INCOME STATEMENT
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Individual
INCOME STATEMENT NOTE No. 03-31-03 03-31-02
---------------- ------- -------- --------
5.31.11.00 OPERATING INCOME 5,849,682 5,143,933
5.31.11.10 Gross Margin 7,085,487 6,220,996
5.31.11.11 Sales 17,448,464 15,663,733
5.31.11.12 Costs (minus) (10,362,977) (9,442,737)
5.31.11.20 Adm. & sales expenses (minus) (1,235,805) (1,077,063)
5.31.12.00 NON-OPERATING INCOME (LOSS) (499,176) (4,111,732)
5.31.12.10 Interest income 433,497 453,918
5.31.12.20 Income from invmnts Rel. Co. 14 1,054,518 715,079
5.31.12.30 Other non-operating income 28 89,874 95,958
5.31.12.40 Loss invmnts Rel. Co. (-) (1,942,221) (4,350,065)
5.31.12.50 Amortization neg.goodwill (-) 16 (42,641) (42,587)
5.31.12.60 Interest expenses (minus) (1,234,535) (672,874)
5.31.12.70 Other non-operat expenses (-) 28 (231,038) (153,140)
5.31.12.80 Price level restatement 29 37,729 87,560
5.31.12.90 Exchange differences 30 1,335,641 (245,581)
5.31.10.00 RESULTS BEFORE INCOME TAX 5,350,506 1,032,201
AND EXTRAORDINARY ITEMS
5.31.20.00 INCOME TAX 8 (1,029,444) (849,690)
5.31.30.00 EXTRAORDINARY ITEMS 0 0
5.31.40.00 PROFIT (LOSS) BEFORE MINORITY INTEREST 4,321,062 182,511
5.31.50.00 MINORITY INTEREST 0 0
5.31.00.00 NET INCOME (LOSS) 4,321,062 182,511
5.32.00.00 Amortization of positive goodwill 0 0
5.30.00.00 INCOME (LOSS) FOR THE YEAR 6 4,321,062 182,511
DIRECT CASH FLOW STATEMENT
2.03 CASH FLOW STATEMENT
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Individual
DIRECT CASH FLOW STATEMENT NOTE No. 03-31-03 03-31-02
-------------------------- ------- -------- --------
5.41.11.00 NET FLOW FROM OP. ACT. 10,025,362 7,343,691
5.41.11.10 Collection from sales debtors 24,484,071 21,009,814
5.31.11.20 Interests received 1,461,445 268,738
5.31.11.30 Dividends & other distributions 90,258 46,558
funds received
5.31.11.40 Other income 134,617 211,458
5.31.11.50 Payments to suppliers & personnel (-) (12,327,841) (11,462,671)
5.31.11.60 Interest paid (minus) (1,813,381) (505,521)
5.31.11.70 Income tax paid (minus) (765,784) (856,629)
5.31.11.80 Other expenses 33 (177,830) (84,553)
5.31.11.90 V.A.T. & other taxes (1,060,193) (1,283,503)
5.41.12.00 CASH FLOW FINANCING ACTIVITIES (1,337,904) (1,979,720)
5.41.12.05 Proceeds from share issue 0 0
5.41.12.10 Loans received 0 0
5.41.12.15 Obligations with the public 0 0
5.41.12.20 Secured loans from related companies 0 0
5.41.12.25 Other loans from related companies 0 0
5.41.12.30 Other financing resources 0 0
5.41.12.35 Dividends paid (minus) (1,337,904) (1,951,005)
5.41.12.40 Capital distributions (minus) 0 0
5.41.12.45 Repayment of loans (minus) 0 (19,479)
5.41.12.50 Payment of obligations with the public (-) 0 0
5.41.12.55 Repayment of secured loans from rel Co. (-) 0 0
5.41.12.60 Repayment other loans from related Co. (-) 0 (9,236)
5.41.12.65 Share issue payment (minus) 0 0
5.41.12.70 Payment of issue publ oblig (minus) 0 0
5.41.12.75 Other financing payments (minus) 33 0 0
5.41.13.00 CASH FLOW FROM INVESTING ACTIVITIES (3,363,292) 1,511,523
5.41.13.05 Sale of fixed assets 56,713 2,659
5.41.13.10 Sale of permanent investments 0 0
5.41.13.15 Sale of other investments 0 5,118,952
5.41.13.20 Proceeds secured loans to related Comp. 0 0
5.41.13.25 Proceeds other loans to related companies 889,139 0
5.41.13.30 Other investment income 33 967,805 920,670
5.41.13.35 Incorporation of fixed assets (minus) (5,258,623) (2,951,787)
5.41.13.40 Capitalized interests payment (minus) 0 0
5.41.13.45 Permanent Investments 0 0
5.41.13.50 Investments in financial instruments (minus) 0 (1,575,103)
5.41.13.55 Other loans to related companies (minus) 0 (3,187)
5.41.13.60 Other loans to related companies (minus) (6,646) (681)
5.41.13.65 Other distrib of funds on invest activities (-) 33 (11,680) 0
5.41.00.00 TOTAL NET CASH FLOW FOR THE PERIOD 5,324,166 6,875,494
5.42.20.00 EFFECT OF INFLATION ON CASH & CASH EQUIV. (404,304) 77,354
5.41.00.00 NET CHANGE IN & CASH EQUIVALENT 4,919,862 6,952,848
5.42.00.00 CASH & CASH EQUI AT BEGINNING OF PERIOD 73,628,508 19,141,638
5.43.00.00 CASH & CASH EQUIV BALANCE AT END OF PERIOD 78,548,370 26,094,486
INCOME STATEMENT RECONCILIATION
CONCILIATION BETWEEN CASH FLOW GENERATED BY THE OPERATION'S ACTIVITIES AND THE
INCOME STATEMENT FOR THE YEAR
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Individual
CASH FLOW - INCOME STATEMENT RECONCILIATION NOTE No. 03-31-03 03-31-02
------------------------------------------- -------- -------- --------
5.50.10.00 Profit (Loss) for the year 4,321,062 182,511
5.50.20.00 Profit in sale of assets 7,268 (767)
5.50.20.10 (Profit) Loss in sale of fixed assets 7,268 (767)
5.50.20.20 Profit in sale of investments (minus) 0 0
5.50.20.30 Loss in sale of investments 0 0
5.50.20.40 (Profit) Loss in sale of other assets 0 0
5.50.30.00 Non-cash losses (gains) 4,464,732 7,152,722
5.50.30.05 Depreciation for the year 12 2,301,568 2,195,177
5.50.30.10 Amortization of intangibles 198,949 216,657
5.50.30.15 Write-offs and provisions 1,517,635 831,231
5.50.30.20 Accrued earnings from investments in 14 (1,054,518) (715,079)
related companies (minus)
5.50.30.25 Accured losses from investments in 14 1,942,221 4,350,065
related Co.
5.50.30.30 Negative goodwill amortization 16 42,641 42,587
5.50.30.35 Positive goodwill amortization (minus) 0 0
5.50.30.40 Price level restatement 29 (37,729 (87,560)
5.50.30.45 Net exchange difference 30 (1,335,641) 245,581
5.50.30.50 Other non-cash credits to results (minus) (8,188) 8,178
5.50.30.55 Other non-cash debits to results 897,794 65,885
5.50.40.00 Changes in Assets affecting cash flow (incr) 2,309,958 2,046,274
decreases
5.50.40.10 Debtors from sales 2,932,298 1,264,644
5.50.40.20 Inventory (274,506) 284,927
5.50.40.30 Other assets (347,834) 496,703
5.50.50.00 Changes in liabilities affecting cash flow (1,077,658) (2,037,049)
increases (decr)
5.50.50.10 Accounts payable related to results for (526,311) (1,151,343)
the year
5.50.50.20 Interests payable (695,004) 22,392
5.50.50.30 Income tax payable (net) 347,635 (177,870)
5.50.50.40 Other accounts payable related to 3,399 (700,936)
non-oper results
5.50.50.50 VAT and other taxes payable (net) (207,377) (29,292)
5.50.60.00 Profit (Loss) of minority interest 0 0
5.50.00.00 NET OPERATING CASH FLOW 10,025,362 7,343,691
01. Registration In The Securities Register
1. IDENTIFICATION OF THE COMPANY AND REGISTRATION IN THE SECURITIES REGISTER
The company is registered in the Securities Register under N 061 and it is
supervised by the Securities and Insurance Commission.
02. Applied Accounting Criteria
APPLIED ACCOUNTING CRITERIA
a) Accounting Period
These financial statements correspond to the period between January 1 and
March 31 of 2003 and 2002.
b) Preparation basis of financial statements:
These individual financial statements as of March 31, 2003 and 2002 have been
prepared on the basis of generally accepted accounting principles and specific
norms issued by the S.V. S., with the former prevailing in case of
discrepancies.
Investments in subsidiaries are recorded on one line in the general balance
sheet at their net worth and, therefore, they have not been consolidated line
by line. This treatment does not modify the net profit of the fiscal year or
the net worth.
These financial statements have been issued only for purposes of making an
individual analysis of the company and, in consideration thereof, they shall
be read together with the consolidated statements, which are required by
generally accepted accounting principles.
c) Presentation Basis
For comparison purposes, the financial statements and figures included in the
disclosures for the 2003 fiscal year are presented updated according to
non-accounting terms as of March 31, 2003 by 3.8%.
d) Adjustment for Currency Devaluation (Price Level Restatement)
Financial statements have been corrected monetarily on the basis of
considering the variation in the purchasing power of the currency which
occurred in the 2003 fiscal year, which was 0.5% (-0.4% in 2002).
e) Conversion Basis
Balances in foreign currency and indexed currency units have been converted to
pesos at the indicated parities:
2003 2002
Ch$ Ch$
--------- ---------
U.S. Dollar 731.56 655.90
Pound Sterling 1,156.25 934.86
Swiss Franc 540.65 389.79
EURO 797.34 570.94
Unidad de Fomento 16,783.60 16,197.66
f) Marketable Securities and Time Deposits
Transactions in fixed income instruments (PRC) are shown at the return value
of the investment, which does not exceed the market value as of March 31,
2003.
Investments in stock are shown at the lowest value between the corrected cost
and market value.
Time deposits are shown at the value of the investment, plus adjustments and
interest accrued as of the date of the fiscal year.
g) Inventory
Inventory of finished products has been valued as of March 31, 2003 and 2002
at the direct production cost, duly updated, and raw materials and materials
at the cost of the last purchase or its corrected cost. Those valuations do
not exceed the net liquidation value.
h) Bad Debts (Uncollectables)
The parent company and subsidiaries have made provision for bad debts that is
deducted from debtors for sales. The criterion adopted to estimate them is the
age of the balances.
i) Fixed Assets
The fixed assets are shown at purchase cost plus legal and regulatory
revaluations accumulated until March 31, 2003 and 2002.
j) Depreciation of Fixed Assets
Depreciation of this property is calculated on updated values, according to
the straight-line depreciation system, considering the estimated useful life
of the property.
k) Assets in Leasing
None.
l) Sales Transactions with Leaseback
None.
m) Intangibles
At March 31, 2003 and 2002 there was no balance in this item.
n) Investments in Related Companies
Investments in stocks and rights in related companies have been valued
according to the percentage of the holding that corresponds to the Company in
the equity of its affiliates
(VPP), according to procedures established for these purposes by circular 368
of the Securities and Insurance Commission.
o) Negative and Positive Investment Goodwill:
Negative and positive investment goodwill have arisen when comparing the price
paid for the investment made and the proportional value that corresponds to
that investment in the net worth of the company.
Those values are amortized over a twenty-year period. At March 31, 2003 and
2002 there was no positive investment goodwill.
p) Operations with buyback and sellback agreement
Financial instruments acquired with a sellback agreement are shown at their
purchase value plus interest and adjustments accrued at the closing of the
fiscal year, and they are classified in Other Current Assets, in the terms
established in Circular No. 768 of the Securities and Insurance Commission.
q) Deferred Taxes and Income Tax
The company has complied with deferred taxes, in accounting terms, as
established in Technical Bulletin No. 60 and the norms indicated in Circular
1466 of the S.V.S.
Income tax is recorded in the accounting on the basis of the calculation of
net taxable income determined according to norms established in the Income Tax
Law.
r) Severance payment
The parent company has established a reserve for all of the personnel's
severance payment, according to the union contracts signed with their workers.
This reserve is shown at the present value of the obligation.
s) Operating income
The company recognizes the income from its operations on an accrued basis
according to generally accepted accounting principles.
t) Derivative Contracts
The company maintains Future contracts in foreign currency, which have been
recorded as established in Technical Bulletin 57 of the Accountants
Association of Chile.
u) Computer Software
The company develops computer software with its own resources, and it also
acquires computer packages from third parties. Disbursements for its own
development are charged to results as they are generated. Computer packages
are recorded in Fixed Assets and amortized in 36 months.
v) Research and Development Expenses
The companies do not show any expenses for this item.
w) Cash Flow Statement:
According to current regulations of the Securities and Insurance Commission
and the Accountants Association of Chile, in preparing the cash flow
statement, the Company has considered time deposits, fixed rate mutual fund
investments and deposits with maturities under 90 days as cash.
Such cash flows related to the Company's line of business, interest paid,
interest income received, dividends received, and all such that is not defined
as investment or Financing is included under the heading "Flow Originating in
Activities of the Operation."
Disbursements from time deposits and agreement with maturity of more than 90
days have been clasified in the item "Investments in Financial Instruments"
03. Accounting Changes
In the 2003 and 2002 period, there have not been any changes in the accounting
criteria that affect the individual financial statements.
04. Marketable Securities
As of March 2003, this item is composed by the following investments:
a) Th Ch$ 55,388,004 in bonds and fixed rate instruments mainly
corresponding to investments in state bonds and financial
institutions in USA, Germany and Holland; private American companies
collateralized bonds (guaranteed by accounts receivable) and American
mortgage bonds with state guarantee.
b) Th Ch$ 3,830,015 in shares.
At March 31, 2003 Th Ch$ 3,388,219 are included corresponding to investments
in shares, Th Ch$ 10,339,303 correspond to investments in fixed rate mutual
funds instruments in Dollars and Th Ch$ 54,680 corresponding to interests
accrued from Bonds.
CRISTALERIAS DE CHILE S.A.
NOTE 4 -MARKETABLE SECURITIES- BALANCE COMPOSITION
Type of Security Book Value
---------------- -----------
03-31-2003 03-31-2002
---------- ----------
Shares 3,830,015 3,388,219
Bonds 0 0
Mutual fund shares 0 10,339,303
Investment fund shares 0 0
Public tender promissory notes 0 0
Mortgage bonds 0 0
Fixed rate instruments and bonds 55,388,004 54,680
Total Marketable Securities 59,218,019 13,782,202
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES - SHARES
Unit Market
R.U.T. Company Name Number of Share Market Investment Corrected
Shares Percentage Value Value Cost
----- ------------ --------- ---------- ------ ---------- ---------
96.512.200-1 Bodegas y Vinedos Santa
Emiliana S.A. 60,440,462 9.4970 96 5,802,284 3,830,015
Value Investment Portfolio 5,802,274 3,830,015
Adjustment Reserve 0
Book value, Investment Portfolio 3,830,015
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES - FIXED RATE INSTRUMENTS
Book Value
----------------------
Par Market
Type of Security Value Rate % Value Reserve
----------------- ----- ------ ------ -------
Bonds from Financial Institutions in USA,
Germany and Holland 15,492,461 15,492,461 1.28 15,911,401 0
USA Treasury bonds 29,005,950 29,005,950 1.17 29,019,522 0
Mortgage bonds USA with state guarantee 4,807,804 4,807,804 1.15 4,807,804 0
Time Deposit 201,179 201,179 0.665 201,179 0
Cash Balance 22,610 22,610 0.00 22,610 0
Call Deposit 5,858,000 5,858,000 1.28 5,858,000 0
TOTAL 55,388,004 55,388,004 55,820,516 -
Note:
(1) Investments have been made in U.S. Dollars (79.7%) and EUROS (20.3%) and
are in custody abroad.
05. Short-Term and Long-Term Debtors
At March 31, 2003 and 2002 there are balances of short-term debtors of Th Ch$
18,394,386 (Th Ch$ 17,612,710 in 2002).
There is also a balance of Th Ch$ 161,203 for Long-Term debtors in 2003 (Th
Ch$ 186,310 in 2002).
At March 31, 2003 and 2002 the company has established a reserve for bad debts
of Th Ch$ 143,127 in 2003 (Th Ch$ 133,189 in 2002), which is deducted from
Debtors for Sales.
The balance of Short-term Debtors is shown net the reserve for bad debtors and
customer advances.
CRISTALERIAS DE CHILE S.A.
NOTE 5 -SHORT AND LONG TERM DEBTORS
Current
-------------------------------------------------------------------------------------------
Over 90 days
Up to 90 days up to 1 year Total Current (net)
------------------------ ---------------------- ------------------------
Area 03-31-2003 03-31-2002 03-31-2003 03-31-2002 Subtotal 03-31-2003 03-31-2002
---- ---------- ---------- ---------- ---------- -------- ---------- ----------
Debts from Sales 15,029,889 13,366,348 743,595 1,224,728 15,773,484 15,630,357 14,457,887
Estimate of non-collectable
debt - - - - - - -
Documents receivable 1,712,512 2,649,718 73,013 37,820 1,785,525 1,785,525 2,687,538
Estimate of bad debtors - - - - - - -
Misc. debtors 929,579 441,450 48,925 25,835 978,504 978,504 467,285
Estimate of bad debtors - - - - - - -
Long Term
------------------------
03-31-2003 03-31-2002
---------- ----------
Debts from Sales 0 0
Estimate of non-collectable
debt - -
Documents receivable 0 0
Estimate of bad debtors - -
Misc. debtors 161,203 186,310
Estimate of bad debtors - -
Total Long Term Debtors 161,203 186,310
06. Balances and Transactions with related entities
I.- Balances of short-term receivables as of March 31, 2003 and 2002 amount to
Th Ch$ 2,461,660 and Th Ch$ 2,687,634, respectively. Additionally, there is a
Long-Term balance of Th Ch$ 22,598,303 and Th Ch$ 21,253,711, respectively. Of
this, Th Ch$ 20,601,055 in 2003 corresponded to the sale of Rayen Cura
S.A.I.C. shares to the subsidiary Cristalchile Inversiones S.A., equivalent to
UF 1,227,451.50 , without interests and Th Ch$ 1,997,248 in 2003, corresponded
to loans granted to Red Televisiva Megavision S.A.
Detail of outstanding credits:
1) Loan to Red Televisiva Megavision S.A. 5.65% Annual Rate, UF adjustability
07.05.2003 17,000 UF Th Ch$ 285,321
01.05.2004 17,000 UF Th Ch$ 285,321
07.05.2004 17,000 UF Th Ch$ 285,321
01.05.2005 17,000 UF Th Ch$ 285,321
07.05.2005 17,000 UF Th Ch$ 285,321
01.05.2006 17,000 UF Th Ch$ 285,321
07.05.2006 17,000 UF Th Ch$ 285,321
01.05.2007 17,000 UF Th Ch$ 285,321
07.05.2007 17,000 UF Th Ch$ 285,321
2) Loan to Cristal Chile Comunicaciones S.A. UF adjustability
03.31.2003 847.57 UF Th Ch$ 14,225
3) There are balances for invoicing of Sales of bottles and services with the
following related companies with expiration under 90 days:
2003 2002
Th Ch$ Th Ch$
------ ------
S.A. Vina Santa Rita 1,761,674 1,867,112
Vina Los Vascos S.A. 78,594 182,895
Servicios y Consultorias Hendaya S.A. 253 -
Rayen Cura S.A. - 142
Total 1,840,521 2,050,149
II.- Balances Payable in the Short-Term amount to Th Ch$ 146,591 in 2003 and
Th Ch$ 263,104 in 2002, which correspond to sundry material purchased .
For invoicing there are accounts payable of related companies for the
following balances with expirations under 90 days:
2003 2002
Th Ch$ Th Ch$
------- ------
S.A. Vina Santa Rita 124,165 208,110
Ediciones Financieras S.A. 2,829 3,840
Vina Los Vascos S.A. 1,109 16,494
Cia. Electro Metalurgica S.A. 2,124 0
Emvases CMF - 90
------- -------
TOTAL 130,227 228,534
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCE AND TRANSACTIONS WITH RELATED COMPANIES
DOCUMENTS AND ACCOUNTS RECEIVABLE
Short Term Long Term
-------------------------- --------------------------
R.U.T. Company 03-31-2003 03-31-2002 03-31-2003 03-31-2002
------- ------- ---------- ---------- ---------- ----------
86547900-K S.A. VINA SANTA RITA 1,761,674 1,867,112 0 0
79952350-7 RED TEL. MEGAVISION S.A. 606,914 623,382 1,997,248 2,286,591
89150900-6 VINA LOS VASCOS S.A. 78,594 182,895 0 0
96721580-5 CRISTACHILE COM. S.A. 14,225 14,103 0 0
96972440-5 CRISTALCHILE INVERSIONES S.A. 0 0 20,601,055 18,967,120
83032100-4 SERV. Y CON. HENDAYA S.A. 253 0 0 -
0-E RAYEN CURA S.A. I.C. 0 142 0 0
TOTAL 2,461,660 2,687,634 22,598,303 21,253,711
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCES AND TRANSACTIONS WITH RELATED COMPANIES
DOCUMENTS AND ACCOUNTS PAYABLE
Short Term Long Term
-------------------------- --------------------------
R.U.T. Company 03-31-2003 03-31-2002 03-31-2003 03-31-2002
------- ------- ---------- ---------- ---------- ----------
86547900-K S.A. VINA SANTA RITA 124,165 208,110 0 0
96608270-4 CIECSA S.A. 6,446 24,208 0 0
96972440-5 CRISTALCHILE INVERSIONES S.A. 9,917 10,362 0 0
89150900-6 VINA LOS VASCOS S.A. 1,109 16,494 0 0
96539380-3 EDICIONES FINANCIEROS S.A. 2,830 3,840 0 0
86881400-4 ENVASES CMF S.A. 0 90
90320000-6 CIA. ELECTROMETALURGICA S.A. 2,124 0 0 0
TOTAL 146,591 263,104 0 0
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCES AND TRANSACTIONS WITH RELATED COMPANIES
TRANSACTIONS
03-31-2003 03-31-2002
--------------------- ------------------------
Effect on Effect on
Description of Results Results
Company R.U.T. Relationship Transaction Amount (Debit/Credit) Amount (Debit/Credit)
------- ------ ------------ -------------- ------ ------------ ------ --------------
CLARO Y CIA. 79753810-8 With the
Chairman Legal assessment 4,911 -4,911 5,764 -5,764
CIA. SUDAMERICANA DE 90160000-7 Indirect Carrier 113,503 0 12,731 0
VAPORES S.A. affiliate services
VINA LOS VASCOS S.A. 89150900-6 Indirect Direct sales 141,924 40,130 172,238 44,873
affiliate
Indirect Materials 7,531 0 12,217 0
affiliate purcha
EDICIONES FINANCIERAS 96793770-3 Indirect Received 2 -2 3,254 -3,254
S.A. affiliate services
QUEMCHI S.A. 96640360-8 Indirect Loaned services 3,135 3,135 2,528 2,528
affiliate
BAYONA S.A. 86755600-1 Controlling Dividends paid 124,163 0 184,116 0
stockholder
NAVARINO S.A. 96566900-0 Indirect Given services 2,506 2,506 2,528 2,528
subsidiary
CIECSA S.A. 96608270-4 Subsidiary Adjustments 5 -5 155 155
CRISTALCHILE 96721580-5 Subsidiary Adjustments 33 33 51 -51
COMUNICACIONES
RED TELEVISIVA 79952350-7 Related with Interests 36,272 36,272 51,734 51,734
MEGAVISION S.A. Subsidiary
ENVASES CMF S.A. 86881400-4 Affiliate Materials 0 0 77 -77
purcha
SERV. Y CONS. HENDAYA 83032100-4 Controlling Dividends paid 119,267 0 176,855 0
S.A. stockholder
Controlling Received 256,708 -256,708 259,327 -257,327
stockholder services
Controlling Given services 5,034 5,034 5,015 5,015
stockholder
CRISTALCHILE INVERSIONES 96972440-5 Subsidiary Credit return 881,208 0 0 0
S.A.
Subsidiary Adjustments 45,692 45,692 0 0
Subsidiary Account 38 0 0 0
payments
CIA. ELECTROMETALURGICA 90320000-6 Controlling Dividends paid 457,380 0 678,229 0
S.A. stockholder
Controlling Materials 1,800 0 0 0
stockholder purcha
RED TELEVISIVA 79952350-7 Related with Adjustments 6,040 6,040 11,470 -11,470
MEGAVISION S.A. Subsidiary
S.A. VINA SANTA RITA 86547900-K Subsidiary Container 1,359,758 384,482 1,582,307 412,234
Sales
Subsidiary Packaging 107,747 0 0 0
sales
Subsidiary Materials and 105,327 102 197,775 -170
services purcha
Subsidiary Rent of 43,732 17,785 0 0
Vineyard
RAYEN CURA S.A.I.C. 0-E Indirect Raw materials 37,895 0 0 0
affiliate sales
07. Inventory
The balance of the inventory item corresponds to finished products and
materials that are valued as described in Note 2 g). A detail of its
composition is shown below:
2003 2002
Th Ch$ Th Ch$
--------- ---------
Finished Products 2,350,612 2,589,531
Raw Materials and Fuel 1,611,679 2,067,372
Materials and spare parts to be consumed 1,049,208 1,262,998
Materials in transit 932,991 360,634
---------- ----------
TOTAL 5,944,490 6,280,535
08. Deferred taxes and income taxes
A) DEFERRED TAXES.
Accumulated balances of deferred taxes for temporary differences, and their
composition in the income tax account for effects of fiscal year results and
recognition of deferred taxes, are presented on the attached charts.
Estimated amortization periods of deferred taxes have been estimated on the
average at 1.8 years for Short-Term Assets, 4.1 for Long-Term Assets, and 14.4
for Long-Term Liabilities.
B) INCOME TAX
The Company established tax provisions of 16.5% of First Category Income Tax
in 2003 (16% in 2002) and 35% as single tax under Art. 21, for the 2003 and
2002 fiscal years.
Credits against taxes are shown deducting the payable obligation.
The itemized list is the following:
2003 2002
Th Ch$ Th Ch$
Fiscal year income tax reserve (912,701) (689,552)
Single tax reserve (2,646) (3,415)
------------ -----------
SUBTOTAL (915,347) (692,967)
Credits:
Monthly reserve payments 771,723 872,821
Training expenditure 60 0
Credit fixed asset 0 0
Credit from donations 0 0
Recoverable VAT 0 0
------------ -----------
CREDIT SUBTOTAL 771,783 872,821
INCOME TAX TOTAL 0 0
VAT Tax Credit previous fiscal year 996,609 1,207,409
TOTAL TAXES TO BE ------------ -----------
RECOVERED 853,045 1,387,263
C) TAXABLE PROFIT FUND
The company showed taxable profits to be distributed:
Generated as of 12.31.1983:
2003 2002
Th Ch$ Th Ch$
Profit adjustment
Generated to 31.12.1983:
Profits Adjustment 1,909,034 1,909,034
Generated since 01.01.1984:
Without Credit 1,072,115 2,673,752
With 10% First Category Credit 22,694 82,075
With 15% First Category Credit 92,502,240 100,864,409
With 16% First Category Credit 16,906,651 3,687,712
With 15% Additional Rate Credit 722 740
With 16.5% First Category Credit 5,950,023 0
------------ -----------
SUBTOTAL TAX PROFITS 116,454,445 107,308,688
Non-income revenues 6,825,087 6,821,960
TOTAL EARNINGS 123,279,532 114,130,648
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
DEFERRED TAXES
03-31-2003 03-31-2002
---------- ----------
Item Asset Deferred Tax Liability Deferred Tax Asset Deferred Tax Liability Deferred Tax
---- ------------------ ---------------------- ------------------ ----------------------
Short term Long Term Short Term Long Term Short Term Long Term Short Term Long Term
---------- --------- ---------- --------- ---------- --------- ---------- ---------
Temporary Differences
---------------------
Reserve non-collectable accounts 23,616 0 0 0 21,310 0 0 0
Expected revenue 0 0 0 0 0 0 0 0
Vacation reserve 29,949 0 0 0 36,080 0 0 0
Amortization intangibles 0 0 0 0 0 0 0 0
Leased assets 0 0 0 0 0 0 0 0
Manufacturing expenses 0 0 0 0 0 0 0 0
Fixed asset depreciation 0 14,781 0 4,484,098 0 0 0 4,246,732
Severance 2,131 148,063 0 0 1,790 34,004 0 0
Other events 0 0 53,357 583,339 0 0 0 0
Packaging reserve 172,496 0 0 0 220,841 0 0 0
Machinery repair reserve 0 0 0 0 169,998 0 0 0
Furnace repair reserve 193,105 354,571 0 0 185,184 565,327 0 0
Refractories obsolescence reserve 6,762 0 0 0 6,576 0 0 0
Spare parts obsolescence reserve 97,163 0 0 0 96,996 0 0 0
Deferred customs duties 2,305 592 0 83,578 25,676 0 0 0
Accumulated depreciation automoviles 0 0 0 0 0 5,780 0 0
Unrealized profit 0 61,912 0 0 0 1,613 0 0
Fixed asset, molds 0 0 0 276,739 0 0 0 272,382
Other reserve 0 0 0 0 0 98,551 0 0
OTHERS
Complementary accounts-net amortization 0 19,783 0 2,487,808 16,334 136,124 0 2,802,118
Valuation reserve - -
Total 527,527 560,136 53,357 2,939,946 748,117 569,151 0 1,716,996
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
INCOME TAX
ITEM 03-31-2003 03-31-2002
---- ---------- ----------
Current tax costs (tax reserve) -915,347 -689,552
Adjustment tax cost (previous year) 0 0
Effect on assets or liabilities from
deferred tax of fiscal year -87,429 -121,177
Tax benefit from tax losses 0 0
Effect of amortization of complementary accounts
of deferred assets and liabilities -26,668 -38,961
Effect on assets or liabilities of deferred tax
for changes in evaluation reserve 0 0
Other debits or credits in the account 0 0
Total -1,029,444 -849,690
09. Short-term and long-term leasing contracts and leasing assets (note
required only for leasing companies defined in circular No. 939 of 1990).
At March 31, 2003 and 2002, there are no transactions for this concept.
10. Other current assets
As of March 31, 2003, this item includes investments in financial instruments
for Th Ch$ 6,078,079, with resale agreements valued as stated in note 2 p), of
which Th Ch$ 3,220,677 correspond to agreements in Pesos and Th$ 2,534,025
correspond to agreements of less than 90 days in US$.
At March 31, 2003 also there are Th Ch$ 323,377 corresponding to issuance
expenses and difference in placement rate of bonds series C and D.
In March 2002 there was a balance of Th Ch$ 2,119,968 for investments in
Financial Instruments with resale agreement, valued as stated in note 2 p).
11. Information on operations involving purchase agreements, sales
agreements, sale with buyback agreement, and purchase with sellback
agreement of commercial paper or bearer securities
Information about these transactions is presented on attached charts.
CRISTALERIAS DE CHILE S.A.
NOTE 11 - Information on operations involving purchase agreements, sales
agreements, sale with buyback agreement, and purchase with sellback agreement
of commercial paper or bearer securities
Sale Operations with buyback agreement (VRC) and Purchase with resale
agreement (CRV)
Code Dates Counterpart Original Price Rate Final Value
Document ID Market Currency Set Value
Dates Original Price Market
Code Start End Counterpart Currency Set Rate Final Value Document ID Value
---- ----- --- ----------- -------- --- ---- ----------- ----------- -----
CRV 03.26.2003 04.01.2003 CITIBANK N.A. Pesos 1,000,000 0.21 1,000,420 PDBC 1,000,350
CRV 03.27.2003 04.03.2003 BANCO CHILE Pesos 591,500 0.20 591,776 PDBC-PRD 591,658
CRV 03.27.2003 04.04.2003 BANCO SANTANDER Pesos 576,500 0.22 576,838 PRD-PCD 576,669
CRV 03.31.2003 04.04.2003 BANCO SANTANDER Pesos 300,000 0.25 300,100 PRD-PCD 300,000
CRV 03.31.2003 04.07.2003 BANCO CHILE Pesos 752,000 0.20 752,351 PDBC-PRD 752,000
CRV 01.06.2003 04.07.2003 BBVA - BHIF Euros 2,467,551 2.04 2,500,304 PRD-ZERO 2,534,025
12. Fixed Assets
Fixed Assets:
The Fixed Assets are shown at purchase cost plus the legal and regulatory
revaluations accumulated as of March 31, 2003 and 2002.
The items that make up the Company's fixed assets as of March 31, 2003 and
2002 include mainly Land, Industrial Constructions, Infrastructure Works,
Machinery, and Equipment.
During 2002, the company carried out a fixed asset inventory, adjusting the
value of charged-off assets with their respective accrued depreciation.
Technical Reappraisal and Adjustment of Accounting Values:
The Company carried out a technical reappraisal of its fixed assets in 1979.
In June 1986 it adjusted those assets. Both operations were carried out
according to the provisions established in Circular Letters No. 1529 and No.
550 respectively of the Securities and Insurance Commission.
The effects of these operations, including write-offs of property, are shown
on the attached chart.
Depreciations:
The charge against results for this item is Th Ch$ 2,301,568 in 2003 and Th
Ch$ 2,195,177 in 2002.
The detail is shown on an attached chart.
FIXED ASSETS
2003 2002
Th Ch$ Th Ch$
LAND
Land & mining claims 1,497,493 1,495,610
Subtotal land 1,497,493 1,495,610
*Subtotal land 1,497,493 1,495,610
CONSTRUCTIONS & INFRASTRUCTURE
High rises and industrial const. 13,301,928 12,772,593
Facilities 8,748,126 4,692,304
Housing developments 26,083 26,051
*Subtotal 22,076,137 17,490,948
DEPRECIATION
Accrued (8,859,417) (7,216,419)
For the fiscal year (318,503) (206,604)
Subtotal depreciation (9,177,920) (7,423,023)
SUBTOTAL CONSTRUCTIONS & INFRASTRUCTURE 12,898,217 10,067,925
MACHINERY & EQUIPMENT
Machinery 47,730,021 53,557,179
Furnaces 35,912,456 37,563,044
Furniture and Materials 1,224,294 1,704,742
Tools 349,151 354,609
Vehicles 219,467 209,276
*Subtotal 85,435,389 93,388,850
DEPRECIATION
Accrued (40,775,943) (39,852,301)
For the fiscal year (1,931,177) (1,943,349)
Subtotal depreciation (42,707,120) (41,795,650)
Subtotal machinery & equip 42,728,269 51,593,200
OTHER FIXED ASSETS
Spare parts 5,394,574 4,716,214
Imports in transit 773,449 1,270,518
Works underway 7,079,643 2,365,720
Lots in Pirque and Leyda 472,652 472,057
Other 357,248 382,663
Subtotal other assets 14,077,566 9,207,172
TOTAL FIXED ASSETS 123,086,585 121,582,580
---------------------- ------------ ------------
TOTAL ACCUMUL. DEPREC. (49,635,360) (47,068,720)
---------------------- ------------ ------------
TOTAL DEPREC FOR YEAR (2,249,680) (2,149,953)
---------------------- ------------ ------------
TOTAL NET FIXED ASSETS 71,201,545 72,363,907
---------------------- ------------ ------------
TECHNICAL REVALUATION AND ADJUSTMENT OF ACCOUNTING VALUES
2003 2002
Th Ch$ Th Ch$
LAND
Land and mining claims 311,374 310,752
Subtotal land and mining claims net 311,374 310,752
CONSTRUCTIONS & INFRASTRUCTURE
High rises and industrial constructions 6,221,626 6,213,607
Facilities 41,120 440,769
Subtotal Constructions 6,262,746 6,654,376
DEPRECIATION
Accrued (4,828,036) (5,014,374)
For the fiscal year (51,889) (51,822)
Subtotal depreciations (4,879,925) (5,066,196)
Subtotal Constuctions & Infrastucture net 1,382,821 1,588,180
Total Net Technical Revaluation 1,694,195 1,898,932
TOTAL 7,675,631 8,566,806
TOTAL ACCRUED DEPREC. (5,929,547) (6,616,052)
TOTAL DEPREC FOR YEAR (51,889) (51,822)
TOTAL NET 1,694,195 1,898,932
13. Sales transactions with leaseback
These type of transactions were not carried out as of March 31, 2003 and 2002.
14. Investments in related companies
The Company has valued its investments in related companies according to the
norms indicated in note 2 n).
CIECSA S.A.
On April 20, 2000 the Shareholders of Ciecsa S.A. agreed to increase that
company's capital in the equivalent to UF 359,921 by issuing 343,750,000
shares that were fully subscribed by Cristalchile S.A. The company has paid
310,345,000 shares which corresponds to UF 324,227.49 totaling a 98.27% stake in
the subsidiary.
CRISTALCHILE INVERSIONES S.A.
At December 31, 2002, the subsidiary Cristalchile Inversiones S.A. adjusted
the financial statements of its affiliate in Argentina, Rayuen Cura S.A.C.I.
in order to acknowledge the devaluation from $1.7 to $3.32 Argentine pesos per
US dollar.
The accounting charge against results, as a consequence of the devaluation of
the Argentine Peso amounted to Th Ch$ 3,060,166 as of December 31, 2002.
Cristalchile Inversiones S.A. carried out an evaluation of its Rayen Cura
S.A.I.C. investment and the assets related are suitably valued.
S.A. VINA SANTA RITA
At December 31, 2002, the company Cristalchile de Chile S.A. has shown a non
realized profit for TH Ch$ 358,116 corresponding to the sales of bottles to the
the subsidiary S.A. Vina Santa Rita.
CRISTALERIAS DE CHILE S.A.
NOTE 14 - INVESTMENTS IN RELATED COMPANIES
DETAIL OF INVESTMENTS
Country Investment
of Control Number of Shareholder Company
R.U.T. Company Origin Currency Shares (Percentage) Equity
03-31-2003 03-31-2002 03-31-2003 03-31-2002
96721580-5 Cristalchile Chile Peso 101,213,160 99.9980000 99.998000 71,342,238 78,832,764
Comunicaciones S.A.
86547900-K S.A. Vina Santa Chile Peso 493,959,797 54.0970000 54.097000 81,035,529 73,720,543
Rita S.A.
86881400-4 Envases CMF S.A. Chile Peso 28,000 50.0000000 50.000000 32,696,854 29,887,536
96608270-4 Ciecsa S.A. Chile Peso 619,496,305 98.2737000 98.210500 13,531,106 10,149,676
96767580-6 Constructora Chile Peso 800,000 80.0000000 80.000000 5,823 49,491
Apoger S.A.
96826870-8 Inmobiliaria Don Chile Peso 3,817 38.1700000 38.170000 34 1,345
Alberto S.A.
96972440-5 Cristalchile Chile Peso 9,999 99.9900000 99.990000 -465,023 -1,431,118
Inversiones S.A.
Net Result of Income not
R.U.T. Company Income Accrual VPP Realized
03-31-2003 03-31-2002 3-31-2003 03-31-2002 03-31-2003 03-31-2002 03-31-2003 03-31-2002
96721580-5 Cristalchile -1,504,834 -2,482,200 -1,504,804 -2,482,200 71,340,811 78,831,187 0 0
Comunicaciones S.A.
86547900-K S.A. Vina Santa 1,204,929 1,055,166 651,830 570,813 43,837,790 39,880,603 -358,116 0
Rita S.A.
86881400-4 Envases CMF S.A. 546,135 288,532 273,067 144,265 16,348,427 14,943,767 0 0
96608270-4 Ciecsa S.A. -444,879 -261,100 -437,172 -256,429 13,297,519 9,968,049 -245,646 -277,976
96767580-6 Constructora -306 -523 -245 -418 4,658 39,592 0 0
Apoger S.A.
96826870-8 Inmobiliaria Don 0 -1,584 0 -605 13 514 0 0
Alberto S.A.
96972440-5 Cristalchile 134,635 -1,610,623 129,620 -1,610,462 0 0 0 0
Inversiones S.A.
TOTAL 144,829,218 143,663,712 -603,762 -277,976
Book value
R.U.T. Company of Investment
03-31-2003 03-31-2002
96721580-5 Cristalchile 71,340,811 78,831,187
Comunicaciones S.A.
86547900-K S.A. Vina Santa 43,479,674 39,880,603
Rita S.A.
86881400-4 Envases CMF S.A. 16,348,427 14,943,768
96608270-4 Ciecsa S.A. 13,051,873 9,690,072
96767580-6 Constructora 4,658 39,592
Apoger S.A.
96826870-8 Inmobiliaria Don 13 514
Alberto S.A.
96972440-5 Cristalchile 0 0
Inversiones S.A.
TOTAL 144,225,456 143,385,736
15. Investments in other companies
At March 31, 2003 and 2002 there are no investments in other companies.
16. Goodwill Amortization
NEGATIVE GOODWILL
Stock purchases made in different periods of S.A. Vina Santa Rita, Ciecsa
S.A., and Envases C.M.F. S.A., have produced negative goodwill whose net
balance to be amortized as of March 31, 2003 totaled Th Ch$ 2,011,178 (Th Ch$
2,178,997 in 2002).
CRISTALERIAS DE CHILE S.A.
NOTE 16 - GOODWILL ON INVESTMENTS
Negative Goodwill
R.U.T. Company Name 03-31-2003 03-31-2002
------ ------------ ---------- ----------
Amount Amortiz. Balance of Negative Amount Amortiz. Balance of Negative
this period Goodwill this period Goodwill
86547900-K S.A. Vina Santa Rita 12,482 593,717 12,466 642,836
96608270-4 Ciecsa S.A. 30,159 1,417,461 30,121 1,536,161
TOTAL 42,641 2,011,178 42,587 2,178,997
17. Intangibles
At March 31, 2003 and 2002 there are no values for these items.
18. Other (Assets)
As of March 31, 2003, the sum of Th Ch$ 9,988,251 (Th Ch$ 9,403,958 in 2002)
for sale of Bonds of Celulosa Arauco and Constitucion S.A. equivalent to
US$13,653,358, at a 6.95% annual rate with maturity on September 15, 2005 is
included in Other Long-term Assets.
Considering that there is the intention of maintaining the Celulosa Arauco and
Constitucion S.A. bonds until their due date on September 15, 2005, the
valuation and registration of the bonds fulfills the provisions in Circular
Letter No. 368 of the S.V.S., as Long-term Fixed Rate Instruments.
In addition, at March 31, 2003 this item includes a balance for issuance
expenses of bonds series C and D for Th Ch$ 982,322 and the negative goodwill
produced by the placement of these for Th Ch$ 2,414,627.
At March 31, 2002 the amount of Th Ch$ 208,248 is included for anticipated
interests of rights of customs duties
19. Short-term obligations with banks and financial institutions
Short-term obligations with Banks and Financial Institutions (5.21.10.10).
As of March 31, 2003 and 2002, there are not short-term bank obligations.
b) Long-term obligations with Banks and Financial Institutions (5.21.10.20).
A list of operations is shown on the attached chart.
CRISTALERIAS DE CHILE S.A.
NOTE 19 - OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS, SHORT TERM
Type of Currency and Readjustment Index
R.U.T. Bank or Financial Dollars Euros Yen
Institution ---------------------- --------------------- ---------------------
03-31-2003 03-31-2002 03-31-2003 03-31-2002 03-31-2003 03-31-2002
Short term (code: 5.21.10.10)
Long Term - Short Term (code: 5.21.10.20)
0-E J.P Morgan Chase Bank 445,744 19,554,244 0 0 0 0
Others 0 0 0 0 0 0
TOTAL 445,744 19,554,244 0 0 0 0
Capital amount due 0 19,452,120 0 0 0 0
Average annual interest rate 2,675 3,375 0 0 0 0
Percentage oblig. foreign curr. (%) 100.0000
Percentage oblig. foreign curr. (%) 0.0000
Type of Currency and Readjustment Index
R.U.T. Bank or Financial Other Foreign
Institution Currencies U.F. $ Non adjustable Total
---------------------- --------------------- --------------------- ---------------------
03-31-2003 03-31-2002 03-31-2003 03-31-2002 03-31-2003 03-31-2002 03-31-2003 03-31-2002
Short term (code: 5.21.10.10)
Long Term - Short Term (code: 5.21.10.20)
0-E J.P Morgan Chase Bank 0 0 0 0 0 0 445,744 19,554,244
Others 0 0 0 0 0 0 0 0
TOTAL 0 0 0 0 0 0 445,744 19,554,244
Capital amount due 0 0 0 0 0 0 0 19,452,120
Average annual interest rate 0 0 0 0 0 0 0 0
Percentage oblig. foreign curr. (%) 100.0000
Percentage oblig. foreign curr. (%) 0.0000
20. Other Current Liabilities
At March 31, 2003 , there was a balance for Th Ch$ 897,794 (TH Ch$ 3,652,650
in 2002) corresponding Future Contracts, and others current liabilities.
21. Long term liabilities with banks and financial institutions
The obligations with banks and financial institutions are presented on the
charts attached.
CRISTALERIAS DE CHILE S.A.
NOTE 21: LONG-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS
Long-term Obligations With Banks and Financial Institutions
Maturity
---------------------------------------------------------------------------------------
Bank or Adjustment More than 10 years
R.U.T. Financial index From 1 From 2 From 3 From 5 ------------------
Institution currency to 2 to 3 to 5 to 10 Amount Term
----- ----------- -------------- ------ ------ ------ ------- ------ ----
M$ M$ M$ M$ M$
0-E J.P. Morgan Chase Bank Dollars - - 36,578,000 - - -
Euros - - - - - -
Yen - - - - - -
UF - - - - - -
Non-adj.CH$ - - - - - -
Others - - - - - -
Total - - 36,578,000 - - -
Porcentaje de obligaciones en moneda extranjera 100.00%
Porcentaje de obligaciones en moneda nacional 0.00%
Bank or
Financial Closing date Closing date
R.U.T. Institution Current period Previous period
------ -------------------------- --------------------------- -------------------
Total Long-Term Average Total Long-Term
Adjustment at closing of annual at closing of
index Financial interest Financial
currency Statements rate Statements
--------------- -------------- -------- --------------
0-E J.P. Morgan Chase Bank 36,578,000 2.675 48,630,300
Dollars - - -
Euros - - -
Yen - - -
UF - - -
Non-adj.CH$ - - -
Others 36,578,000 48,630,300
Total
Porcentaje de obligaciones en moneda extranjera 100.00%
Porcentaje de obligaciones en moneda nacional 0.00%
22. Short-term and long-term obligations with
the public (promissory notes and bonds)
As of March 31, 2003, there are obligations with the public for UF 4,100,000,
corresponding Th Ch$ 68,812,760, divided in series (C1, C2, D1, D2) with 4.75%
interest in series C and 5.80% interest in series D. In short term there is a
balance for Th Ch$ 748,203 corresponding to interest accrued for UF 44,579.42.
Series C bonds have a final maturity of 6 years, with amortizations beginning
2 years from the closing date. Bond series D have a final maturity of 21 years
with amortizations starting 6 years from the closing date.
At March 31, 2002, there was no balance for this concept.
Cristalerias de Chile S.A.
NOTE 22: SHORT-TERM AND LONG-TERM OBLIGATIONS WITH PUBLIC (PROMISSORY NOTES AND
BONDS)
BONDS
REGISTRATION OR
IDENTIFICATION No. CURRENT INDEXING INTEREST FINAL
OF INSTRUMENT SERIES FACE VALUE UNIT OF BOND RATE MATURITY
------------- ------ ---------- ------------ ---- --------
LONG-TERM BONDS-CURRENT PORTION
296-09.07.02 C1 Interests 0 UF 4.75 07-15-2003
296-09.07.02 C2 Interests 0 UF 4.75 07-15-2003
296-09.07.02 D1 Interests 0 UF 5.8 07-15-2003
296-09.07.02 D2 Interests 0 UF 5.8 07-15-2003
TOTAL CURRENT PORTION
LONG-TERM BONDS
296-09.07.02 C1 1,500,000 UF 4.75 07-15-2008
296-09.07.02 C2 500,000 UF 4.75 07-15-2008
296-09.07.02 D1 1,900,000 UF 5.8 07-15-2023
296-09.07.02 D2 200,000 UF 5.8 07-15-2023
LONG-TERM TOTAL
INSTALLMENTS
REGISTRATION OR ------------------------------ PAR VALUE ISSUE
IDENTIFICATION No. INTEREST AMORTIZATION -------------------------- IN CHILD OR
OF INSTRUMENT SERIES PAYMENT PAYMENT 03-31-2003 03-31-2002 ABROAD
------------- ------ ------- ------- ---------- ---------- ------
LONG-TERM BONDS-CURRENT PORTION
296-09.07.02 C1 Interests SEMI-ANNUAL SEMI-ANNUAL 246,241 0 LOCAL
296-09.07.02 C2 Interests SEMI-ANNUAL SEMI-ANNUAL 82,080 0 LOCAL
296-09.07.02 D1 Interests SEMI-ANNUAL SEMI-ANNUAL 379,893 0 LOCAL
296-09.07.02 D2 Interests SEMI-ANNUAL SEMI-ANNUAL 39,989 0 LOCAL
TOTAL CURRENT PORTION 748,203 0
LONG-TERM BONDS
296-09.07.02 C1 SEMI-ANNUAL SEMI-ANNUAL 25,175,400 0 LOCAL
296-09.07.02 C2 SEMI-ANNUAL SEMI-ANNUAL 8,391,800 0 LOCAL
296-09.07.02 D1 SEMI-ANNUAL SEMI-ANNUAL 31,888,840 0 LOCAL
296-09.07.02 D2 SEMI-ANNUAL SEMI-ANNUAL 3,356,720 0 LOCAL
LONG-TERM TOTAL 68,812,760 0
23. Provisions and Write-offs
Provisions:
As of March 31, 2003, the Company has short-term provisions of Th Ch$
4,653,758 and Th Ch$6,690,113 in 2002.
In the Long-term, reserves are recorded of Th Ch$ 6,063,280 and Th Ch$
7,164,981 at March 31, 2003 and 2002 respectively.
In the annexed chart a detail of amounts provisioned is presented.
a) Bad Debt Reserves:
The Company has established a reserve for bad debts of Th Ch$ 143,127, and Th
Ch$ 133,189, respectively, as of March 31, 2003 and 2002.
This reserve is deducted from the balance of sales debtors, according to note
5.
b) Vacation Provision:
The company has established a provision for the total cost of vacations
pending as of March 31, 2003 and 2002, as established in Technical Bulletin
No. 47 of the Accountants Association of Chile.
The net balance for this item is Th Ch$ 181,508 as of March 31, 2003 (Th Ch$
229,351 in 2002).
c) Provision for Furnace Reconstruction:
This reserve is established throughout the useful life of the refractories of
each smelting furnace so their repair will not distort the result of the
fiscal year's net income when the repairs are made.
The Company has established a reserve for this item in the amount of Th Ch$
3,268,385 and Th Ch$ 4,581,603 as of March 31, 2003 and 2002, respectively.
An itemized list of the amounts provided is shown in the attached chart.
Cristalerias de Chile S.A.
Note Provisions and Write-offs 03/31/2003 03/31/2002
Th$ Th$
Short Term
Furnace Reconstruction 1,170,334 1,157,401
Packing for Client Return 1,024,731 1,186,066
Board Share 879,269 745,136
Reserve Subsidiary Losses 464,977 1,430,975
Provision Indirect Expenses 252,961 226,586
Legal Holiday 181,508 229,351
Severance Pay 171,373 143,925
Reserve Spare Parts 463,350 463,350
Machinery Repair 0 1,046,147
Other Reserves 45,255 61,176
4,653,758 6,690,113
Long-Term
Severance Pay 3,965,229 3,740,779
Furnace Reconstruction 2,098,051 3,424,202
Total Long-Term 6,063,280 7,164,981
24. Severance Payments
The provision for severance payments to personnel is included at its current
value, as expressed in note 2 r). In 2003 it totals Th Ch$ 4,136,602 (Th Ch$
3,884,704 in 2002).
As of March 31, 2003 and 2002 the parent company has paid severance payments
of Ch$ 802 and Th Ch$ 21,737 respectively chargeable against the provision.
25. Other long-term liabilities
As of March 31, 2003 and 2002 there are no values for this concept.
26. Minority interest
Not applicable to individual financial statements.
27. Changes in Equity
Activity in 2003 and 2002
The activity of the capital and reserve accounts in the fiscal years ended in
March 31, 2003 and 2002, are shown in the attached charts.
The detail of other reserves account is the following:
2003 2002
Th Ch$ Th Ch$
Future capital increases 4,464,029 4,251,548
Reserve for adjustment of value of fixed assets 1,694,196 1,898,932
Adjustment for conversion difference in investment
in Rayen Cura S.A.I.C. 4,099,356 2,380,773
VPP Difference Sodex (217,173) (216,900)
---------- ---------
TOTAL OTHER RESERVES 10,040,408 8,314,353
========== =========
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NET WORTH
Reserve Premium Reserve
Paid-in capital in sale of Other Future
Capital revaluation shares Reserves Dividends
------- ----------- ---------- -------- ---------
Balances as of 03-31-2003
Initial balance 64,749,257 0 27,598,393 9,713,099 114,912,655
Distribution result previous fiscal year 0 0 0 0 0
Final dividend previous fiscal year 0 0 0 0 0
Capital increases with cash stock issue 0 0 0 0 0
Reserves and/or Profits Capitalization 0 0 0 0 0
Development period Accumulated deficit 0 0 0 0 0
Accumulated conversion difference adjustment 0 0 0 278,744 0
Owner's equity Revaluation 0 323,746 137,992 48,565 574,563
Fiscal Year Result 0 0 0 0 0
Provisional Dividends 0 0 0 0 0
---------- ------- ---------- ---------- -----------
Final balances 64,749,257 323,746 27,736,385 10,040,408 115,487,218
========== ======= ========== ========== ===========
Balances as of 03-31-2002
Initial balance 62,863,356 0 26,794,558 7,942,919 102,798,113
Distribution result previous fiscal year 0 0 0 0 0
Final dividend previous fiscal year 0 0 0 0 0
Capital increases with cash stock issue 0 0 0 0 0
Reserves and/or profit Capitalization 0 0 0 0 0
Development period accumulated deficit 0 0 0 0 0
Accumulated conversion difference adjustment 0 0 0 98,828 0
Owner's equity revaluation 0 -251,453 -107,180 -31,773 -411,190
Fiscal Year Result 0 0 0 0 0
Provisional Dividends 0 0 0 0 0
---------- ------- ---------- ---------- -----------
Final balances 62,863,356 -251,453 26,687,378 8,009,974 102,386,923
========== ======= ========== ========= ===========
Updated balances 65,252,164 -261,008 27,701,498 8,314,353 106,277,626
========== ======= ========== ========= ===========
Devel. Fiscal
Accumulated Provisional Period Year
Results Dividends Deficit Result
------- --------- ------- ------
Balances as of 03-31-2003
Initial balance 0 0 0 0
Distribution result previous fiscal year 17,660,662 0 0 0
Final dividend previous fiscal year -3,303,936 0 0 0
Capital increases with cash stock issue 0 0 0 0
Reserves and/or Profits Capitalization 0 0 0 0
Development period Accumulated deficit 0 0 0 0
Accumulated conversion difference adjustment 0 0 0 0
Owner's equity Revaluation 71,784 0 0 0
Fiscal Year Result 0 0 0 4,321,062
Provisional Dividends 0 0 0 0
---------- -- -------- ---------
Final balances 14,428,510 0 0 4,321,062
========== == ======== =========
Balances as of 03-31-2002
Initial balance 0 0 -123,129 0
Distribution result previous fiscal year 17,770,611 0 0 0
Final dividend previous fiscal year -4,657,728 0 0 0
Capital increases with cash stock issue 0 0 0 0
Reserves and/or profit Capitalization 0 0 0 0
Development period accumulated deficit 0 0 0 0
Accumulated conversion difference adjustment 0 0 0 0
Owner's equity revaluation -52,451 0 493 0
Fiscal Year Result 0 0 0 175,829
Provisional Dividends 0 0 0 0
---------- -- -------- ---------
Final balances 13,060,432 0 -122,636 175,829
========== == ======== =========
Updated balances 13,556,728 0 -127,296 182,511
========== == ======== =========
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN EQUITY
NUMBER OF SHARES
No.
SERIES No. No. SHARES
SHARES SHARES WITH VOTING
SUBSCRIBED PAID RIGHT
---------- ---- -----
SINGLE 64,000,000 64,000,000 64,000,000
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NET WORTH
CAPITAL (AMOUNT - TH CH$)
SERIES SUBSCRIBED PAID-IN
CAPITAL CAPITAL
------- -------
SINGLE 64,749,257 64,749,257
28. Other Non-operating Income and Expenses
As of March 31, 2003 non-operating income totaled Th Ch$ 89,874 and Th Ch$
95,958 in 2002.
Non-operating expenses amounted to Th Ch$ 231,038 in 2003 and Th Ch$ 153,140
in 2002.
Further detail is presented in the annexed chart.
Non-operating Income and Expenses
CRISTALERIAS DE CHILE S.A.
NOTE 28: OTHER NON-OPERATING INCOME AND EXPENSES
2003 2002
---- ----
Th Ch$ Th Ch$
INCOME
Offices and establishments rental 31,081 55,837
Sale of fixed assets 0 766
Sale of materials 4,753 7,048
Agricultural division 20,846 0
Amortization of non-realized profits 8,188 8,178
Sundry income 25,006 24,129
------ ------
TOTAL NON-OPERATING INCOME 89,874 95,958
EXPENSES
Professional advice 156,592 149,119
Other expenses 63,755 0
Insurance 10,691 4,021
------ -----
TOTAL NON-OPERATING EXPENSES 231,038 153,140
29. Price-level Restatement
As a result of the application of price-level restatement as described in Note
2 d), a net credit to results was generated in the 2003 and 2002 fiscal year
of Th Ch$ 37,729 and Th Ch$ 87,560 respectively.
Additional information is presented in the annexed chart.
Cristalerias de Chile S.A.
NOTE 29: ADJUSTMENT FOR PRICE LEVEL RESTATEMENTS
ADJUSTABILITY
ASSETS (DEBITS)/CREDITS INDEX 03-31-2003 03-31-2002
----------------------- ----- ---------- ----------
INVENTORY Consumer Price Index 50,850 -64,196
FIXED ASSET CPI 372,056 -294,783
INVESTMENTS IN RELATED COMPANIES CPI 732,936 -593,104
MARKETABLE SECURITIES CPI 18,997 -13,575
SHORT TERM DEBTORS CPI 800 -664
ACCOUNTS RECEIVABLE RELATED COMPANIES UF 51,766 -87,634
LONG-TERM DEBTORS UF 725 -252
SHORT TERM DEBTORS UF 809 0
OTHER NON-MONETARY ASSETS CPI 15,280 -2,039
EXPENSE AND COST ACCOUNTS CPI 190,942 -3,011
---------- ----------
TOTAL (DEBITS)/CREDITS - 1,435,161 -1,059,258
LIABILITIES (DEBITS)/ CREDITS
NET WORTH CPI -1,156,651 885,990
ACCOUNTS RECEIVABLE RELATED COMPANIES UF -5 155
SHORT-TERM RESERVES CPI -5,234 -4,671
SHORT-TERM CREDITORS CPI 0 77,677
LONG-TERM CREDITORS CPI -109 239
LONG-TERM BANK LOANS CPI 0 194,192
LONG-TERM RESERVES CPI -20,061 -16,280
PUBLIC OBLIGATION UF -161,868 0
NON-MONETARY LIABILITIES CPI 373 4,352
INCOME ACCOUNTS CPI -53,877 5,164
---------- ----------
TOTAL (DEBITS)/ CREDITS - -1,397,432 -1,146,818
(LOSS) PROFIT FROM ADJUSTMENT FOR PRICE LEVEL RESTATEMENT 37,729 87,560
30. Exchange Differences
A net credit against results was made because of exchange rate difference of
Th Ch$ 1,335,641 in 2003 and a net credit of Th Ch$ 245,581 in 2002.
According to the provisions in Circular Letter 1560 of the SVS of 09/20/2001,
the net effect of the adjustment of adjustable assets and liabilities in
foreign currency on results deducting the effect of inflation is presented in
this item.
Further information is shown in the attached table.
Cristalerias de Chile S.A.
NOTE 30: EXCHANGE DIFFERENCES
ITEM CURRENCY AMOUNT
---- -------- ---------------------------
03-31-2003 03-31-2002
---------- ----------
FIXED (DEBITS) CREDITS
AVAILABLE DOLLARS -144 445
MARKETABLE SECURITIES DOLLARS 974,083 0
TIME DEPOSITS DOLLARS -102,492 -10,476
INVENTORY DOLLARS 49,811 -12,831
BONDS INSTALLMENT DOLLARS 231,941 0
OTHER ASSETS DOLLARS 6,482 9,870
EFFECT OF FUTURE CONTRACT DOLLARS 1,142,534 0
EFFECT OF INFLATION DOLLARS -170,436 0
--------- ------
TOTAL (DEBITS) CREDITS 2,131,779 -12,992
LIABILITIES (DEBITS) CREDITS
SHORT-TERM BANK LOANS DOLLARS 0 -110,596
NOTES PAYABLE DOLLARS -2,528 -49,983
NOTES PAYABLE OTHER CURRENCY 0 5,390
SUNDRY CREDITORS - SHORT TERM DOLLARS -13,638 0
LONG-TERM BANK LOANS DOLLARS -647,500 -68,684
SHORT-TERM RESERVES DOLLARS -58,133 -1,959
LONG-TERM RESERVES DOLLARS -28,590 -4,776
SUNDRY CREDITORS - LONG TERM DOLLARS -3,505 -1,981
OTHER LIABILITIES DOLLARS -42,244 0
--------- ------
TOTAL (DEBITS) CREDITS -796,138 -232,589
(LOSS) PROFIT FROM EXCHANGE DIFFERENCE 1,335,641 -245,581
31. Extraordinary Items
As of March 31, 2003, there are no transactions for this item.
32. Expenses incurred in the sale of shares and debt instruments
On August 2002 the company placed bond series C1, C2, D1 and D2, which
resulted in expenses and rate placement differences of Th Ch$ 3,720,326 as of
March 31, 2003. The amortization is being done according to the maturity of
each series.
Th Ch$ 323,376 are classified under other current assets and Th Ch$ 3,396,950
under other long term assets. The charge for its amortization to results
amounted Th Ch$ 80,986.
At March 31, 2002, there was no expenses for this item.
33. Cash Flow Statement
An itemized list is included in the attached chart.
CRISTALERIAS DE CHILE S.A.
CASH FLOW STATEMENT
1. The following is the detail of the item OTHERS:
March 2003 March 2002
---------- ----------
Th Ch$ Th Ch$
541.11.40 Other income received
Income Tax return 133,416 0
Discount for Custom Duties 0 139,514
Adjustment received 0 51,966
Other income 1,201 19,978
Total 134,617 211,458
541.11.80 Other expenses paid
Exchange difference 168,532 64,903
Donations 7,770 19,569
Other expenses 1,528 81
Total 177,830 84,553
541.13.15 Sale of other investments
Long-Term bonds share 0 181,319
Redemption Time Dep. over 90 days 0 4,937,633
Total 0 5,118,952
541.13.30 Other income from investments
Maturity of future contracts 967,805 920,670
Total 967,805 920,670
541.13.65 Other investment disbursements
Purchase of shares 11,680 0
Total 11,680 0
Following are financing and investment activities that did not generate cash
flow during the fiscal year, but that commit future parent company cash flows:
ITEM Amount Th Ch $ Maturity
---- -------------- --------
Dividend 153 5,526,400 April-03
Imports payable investment project 1,748,597 April-03
Imports payable investment project 110,808 May-03
TOTAL 7,385,805
34. Derivative Contracts
The parent company has signed future contracts in foreign currency of Th US$
109,600 in 2003 (Th US$ 119,600 in 2002) subject to the regulations of Chapter
VII of the Compendium of International Exchange Regulations of the Central
Bank of Chile and Chapter 13-2 of the compilation of Regulations of Banks and
Financial Institutions.
As of March 31, 2003 and 2002 there was a difference in favor of financial
institutions of Th Ch$ 897,794, (Th Ch$ 3,652,650 in 2002 classified under
Other Current Liabilities).
CRISTALERIAS DE CHILE S.A.
NOTE 34: DERIVATIVE CONTRACTS
DESCRIPTION OF CONTRACTS
---------------------------------------------------
PROTECTED ITEM OR
MATURITY OR PURCHASE/ TRANSACTION
TYPE OF TYPE OF VALUE OF EXPIRATION SPECIFIC SALE -----------------
DERIVATIVE CONTRACT CONTRACT DATE ITEM POSITION NAME AMOUNT
---------- -------- -------- ---------- ---- -------- ---- ------
FR CI 5,496,858 SECOND 2003 EXCHANGE RATE P - 0
FR CI 50,709,306 THIRD 2003 EXCHANGE RATE P - 0
FR CI 23,075,018 FOURTH 2002 EXCHANGE RATE P - 0
35.
ACCOUNTS AFFECTED
--------------------------------------------------
MATURITY OR VALUE OF ASSETS/LIABILITIES EFFECT ON RESULT
TYPE OF TYPE OF VALUE OF EXPIRATION PROTECTED --------------------- ----------------------
DERIVATIVE CONTRACT CONTRACT DATE ITEM NAME AMOUNT REALIZED NOT REALIZED
---------- -------- -------- ---------- --------- ----------- ------ ------- ----------
FR CI 5,496,858 SECOND 2003 0 ASSETS 375,938 375,938 0
FR CI 50,709,306 THIRD 2003 0 LIABILITIES 938,830 938,830 0
FR CI 23,075,018 FOURTH 2002 0 LIABILITIES 334,902 334,902 0
Analysis of Forward Contracts in foreing currency as of 03.31.2003
INSTITUTION DATE FUTURE VALUE PROFIT (Loss)
--------------------- -------------------------- ------------ --------------------------
Investment Maturity US$ March-2003 March-2002
---------- -------- --- ---------- ----------
ThCh$ ThCh$
Banco Santander 03-13-2002 07-08-2003 4,000,000 193,153
Bank Boston N.A. 05-15-2002 05-13-2003 3,000,000 182,785
Nominal Contract:
Banco Chile 09-05-2002 09-04-2003 5,000,000 49,014 -
BCI 09-11-2002 09-10-2003 5,000,000 38,906 -
Banco Chile 09-12-2002 09-11-2003 4,000,000 27,859 -
BBVA BHIF 09-23-2002 09-22-2003 5,000,000 (99,753) -
Banco Chile 09-24-2002 09-23-2003 5,000,000 (104,066) -
Banco Chile 09-27-2002 09-26-2003 4,000,000 (77,362) -
BCI 09-30-2002 09-29-2003 2,000,000 (46,900) -
Banco Santander 09-26-2002 09-24-2003 6,500,000 (125,874) -
Banco Santander 09-26-2002 09-25-2003 6,500,000 (125,210) -
Banco Chile 10-02-2002 10-01-2003 6,000,000 (117,075) -
Banco Santander 10-01-2002 09-30-2003 6,000,000 (130,976) -
Banco Santander 10-03-2002 10-02-2003 5,000,000 (96,030) -
Deutsche Bank (Chile) S.A. 10-10-2002 10-09-2003 4,000,000 (116,461) -
Scotiabank 10-16-2002 10-15-2003 2,000,000 (37,275) -
Deutsche Bank (Chile) S.A. 03-11-2003 09-08-2003 6,600,000 (178,654) -
Deutsche Bank (Chile) S.A. 03-19-2003 09-15-2003 10,000,000 (54,640) -
Deutsche Bank (Chile) S.A. 03-28-2003 11-17-2003 10,000,000 16,191 -
Citibank N.A. 03-26-2003 11-10-2003 5,000,000 15,748 -
Banco Chile 03-13-2003 09-10-2003 5,000,000 (111,174) -
---------- ---------- ----------- -------- ---------
Sub Total 2003 109,600,000 (897,794) -
Banco Chile 03-26-2002 03-19-2003 5,000,000 (75,480)
Banco Chile 03-26-2002 03-19-2003 5,000,000 (75,442)
BCI 03-26-2002 03-26-2003 5,000,000 (75,442)
Banco Santander 03-13-2002 04-08-2003 4,000,000 (27,158)
Citibank 02-28-2001 05-15-2002 3,000,000 217,446
Deutsche Bank (Chile) S.A. 03-28-2001 03-28-2003 10,000,000 (89,919)
Deutsche Bank (Chile) S.A. 07-20-2001 07-22-2002 10,000,000 (153,554)
Bank Boston 09-12-2001 09-11-2002 4,000,000 (153,140)
Bank Boston 09-13-2001 09-12-2002 5,000,000 (172,521)
Banco A Edwards 09-06-2001 09-05-2002 5,000,000 (98,877)
Banco A Edwards 09-28-2001 09-27-2002 4,000,000 (196,217)
Banco Santander 09-27-2001 09-26-2002 4,000,000 (194,109)
Banco Santander 09-27-2001 09-26-2002 4,000,000 (193,811)
Banco Santander 09-27-2001 09-26-2002 5,000,000 (241,517)
Banco Santander 10-02-2001 10-01-2002 6,000,000 (348,691)
Banco Santander 10-03-2001 10-03-2002 5,000,000 (252,875)
Banco Santiago 21-09-2001 24-09-2002 5,000,000 (237,627)
Chase Manhattan Bank 09-20-2001 09-23-2002 5,000,000 (245,449)
Banco A Edwards 10-01-2001 09-30-2002 2,000,000 (96,603)
Banco A Edwards 10-02-2001 10-02-2002 6,000,000 (290,267)
Banco A Edwards 10-10-2001 10-09-2002 4,000,000 (268,202)
Banco A Edwards 10-16-2001 10-16-2002 2,000,000 (117,735)
JP Morgan Chase 11-27-2001 12-04-2002 5,000,000 (89,191)
JP Morgan Chase 11-28-2001 12-11-2002 6,600,000 (125,199)
Banco Santiago (EURO/US$) 12-19-2001 12-18-2002 3,500,000 (51,070)
- ---------- ---------- ----------- -------- --------
119,600,000 0
TOTAL TH Ch$ (897,794) (3,652,650)
35. Contingencies and Restrictions
CONTINGENCIES AND COMMITMENTS
As of March 31, 2003, there is a guarantee delivered in the amount of Th Ch$
7,868 (Th Ch$ 7,882 in 2002), according to the detail in the attached chart.
LAWSUITS OR OTHER LEGAL ACTIONS THE COMPANY IS INVOLVED IN
As of March 31, 2003 and 2002 there are no pending lawsuits and other legal
actions pending.
RESTRICTIONS
I) SYNDICATED LOAN
In relation to the syndicated loan subscribed with JP Morgan Chase Bank and
other 8 creditor banks for US$ 50 million, the following specific financial
obligations exist:
a) TOTAL CONSOLIDATED DEBT TO CAPITALIZATION RATIO
Cristalerias de Chile S.A will not allow the Total Consolidated Debt to
Capitalization Ratio to exceed the 0.45 to 1.0 relation at any time.
b) TOTAL NON-CONSOLIDATED DEBT TO EBITDA RATIO
Cristalerias de Chile S.A will not allow the Total Non-consolidated Debt to
EBITDA Ratio to exceed the 2.5 to 1.0 relation at any time.
Consolidated EBITDA is defined as the sum of the following: Operating income
plus depreciation ansd amortization, plus non-cash charges (as long as they
have been deduced when determining the operating income) and cash income for
interests minus non-cash credits ,(as long as they have been added when
determining operating income), in each case for each period.
c) INTEREST COVERAGE RATIO
Cristalerias de Chile S.A. will not allow the Interest Coverage Ratio to be
lower than the following ratios at any time during the following periods: from
January 1, 2003 onwards, 4.0.
Interest coverage at the date of determination is defined as follows: the
ratio between non-consolidated EBITDA for the period of four consecutive
quarters that end, or most recently ended in, that date , and interest
expenses for that period.
d) NET EQUITY
Cristalerias de Chile S.A. will maintain a minimum of UF 10,000,000 at any
time.
Cristalerias de Chile S.A. complies with 100% of the restrictions imposed by
the creditor banks.
II) BOND ISSUE
The bond issue contract signed with Banco Chile as the bond owner's
representative in May 29, 2002, established the following obligations:
a) Financial Indicators
Individual Balance: Leverage not higher than 1.2 times.
Consolidate Balance: Leverage not higher than 1.4 times.
b) Insurances for fixed assets of the company and its subsidiaries.
c) The operations for which art. 44 and 89 of law 18,046 refer to must be
carried out according to the conditions that these establish.
d) Other minor restrictions related with the bond issue contract.
Cristalerias de Chile S.A. complies with 100% of the restrictions imposed by
the creditors.
OTHER CONTINGENCIES
As of March 31, 2003 and 2002, management is not aware of any other
contingencies that could affect the company.
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - DIRECT GUARANTEES
CREDITOR DEBTOR ASSETS COMMITTED
OF ------------------------------------- --------------------
GUARANTEE NAME RELATIONSHIP TYPE OF GUARANTEE TYPE BOOK VALUE
--------- ---- ------------ ----------------- ---- ----------
EDIFICIO METROPOLIS AGF CRISTALERIAS DE CHILE S.A. COMMERCIAL DEPOSIT FLOOR 7,868
BALANCES PENDING
PAYMENT AS OF
CREDITOR DEBTOR CLOSING DATE
OF ------ OF FINANCIAL
GUARANTEE NAME STATEMENTS RELEASE OF GUARANTEES
--------- ---- ---------------- -------------------------------------------------------
03-31 03-31 03-31 03-31 03-31
2003 2002 2004 ASSETS 2005 ASSETS 2006 ASSETS
---- ---- ---- ------ ---- ------ ---- ------
EDIFICIO METROPOLIS AGF CRISTALERIAS DE CHILE S.A. 7,868 7,882 - - 7,868 - - -
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - INDIRECT GUARANTEES
CREDITOR DEBTOR ASSETS COMMITTED
OF ------------------------------------- --------------------
GUARANTEE NAME RELATIONSHIP TYPE OF GUARANTEE TYPE BOOK VALUE
--------- ---- ------------ ----------------- ---- ----------
Societe de
Participations
Financieres et
Industrielles Rayen Cura S.A. Affiliate Solidary - -
Envases CMF Cristalerias de Chile S.A Affiliate Solidary - -
BALANCES PENDING
PAYMENT AS OF
CREDITOR DEBTOR CLOSING DATE
OF ------ OF FINANCIAL
GUARANTEE NAME STATEMENTS RELEASE OF GUARANTEES
--------- ---- ---------------- -----------------------------------------------------------------
03-31 03-31 03-31 03-31 03-31
2003 2002 2004 ASSETS 2005 ASSETS 2006 ASSETS
---- ---- ---- ------ ---- ------ ---- ------
Societe de
Participations
Financieres et
Industrielles Rayen Cura S.A. 3,371,028 3,921,547 842,757 - 842,757 - 1,685,514 -
Envases CMF Cristalerias de Chile S.A 329,357 - - - - - 329,357 -
36. Guarantees obtained from third parties
As of March 31, 2003 and 2002 the company has received guarantees from third
parties, which are shown below:
ITEM 2003 2002
Th Ch$ Th Ch$
Real Estate Lease Bank Boston UF 367.9 0 6,185
Real Estate Lease Security Bank UF 304 5,102 0
Real Estate Lease to Telecomunicaciones
Cono Sur Ltda. (UF 130) 2,182 2,186
Real Estate Lease AGF Building (UF 365.9) 6,141 3,951
Real Estate Lease Metropolis Building (UF 189.2) 3,175 0
Suppliers Sight Drafts 1,675 1,288
TOTAL 18,275 13,610
37. Local and Foreign Currency
Charts are attached showing the foreign currency balance as of March 31, 2003
and 2002.
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - ASSETS
ITEMS Currency Amount
----- -------- --------------------------
03-31-2003 03-31-2002
---------- ----------
Current Assets
CASH Non-adjust Ch$ 848,275 1,645,793
CASH Dollars 127,519 107,502
TIME DEPOSITS Dollars 7,495,778 14,561,246
TIME DEPOSITS Non-adjust Ch$ 8,934,092 3,130,234
MARKETABLE SECURITIES Adjustable Ch$ 3,830,015 3,388,219
MARKETABLE SECURITIES Dollars 55,361,469 10,339,303
MARKETABLE SECURITIES Non-adjust. Ch$ 26,535 54,680
DEBTORS FROM SALES Non-adjust. Ch$ 15,630,357 14,457,887
DOCUMENTS RECEIVABLE Non-adjust. Ch$ 1,785,525 2,687,538
MISCELLANEOUS DEBTORS Adjustable Ch$ 809,645 323,246
MISCELLANEOUS DEBTORS Non-adjust. Ch$ 156,541 134,950
MISCELLANEOUS DEBTORS Dollars 12,318 9,089
DOC.&ACTS. REC. REL. CO'S. Non-adjust. Ch$ 1,840,520 2,050,147
DOC.&ACTS. REC. REL. CO'S. Adjustable Ch$ 621,139 637,488
STOCK Adjustable Ch$ 5,944,490 6,280,535
STOCK Dollars 0 0
REFUNDABLE TAX Non-adjust. Ch$ 853,045 1,387,263
EXPENSES PAID IN ADVANCE Dollars 398,419 108,731
EXPENSES PAID IN ADVANCE Adjustable Ch$ 0 152,896
DEFERRED TAXES Non-adjust Ch$ 474,170 748,117
OTHER CURRENT ASSETS Non-adjust Ch$ 3,347,825 2,119,968
OTHER CURRENT ASSETS Dollars 2,534,025 0
OTHER CURRENT ASSETS Adjustable Ch$ 196,229 0
Fixed Assets
FIXED ASSETS Adjustable Ch$ 72,895,740 74,262,839
Other Assets
INVESTMENT REL. CO'S. Adjustable Ch$ 144,225,456 143,385,736
NEG. INVESTMENT GOODWILL Adjustable Ch$ 2,011,178 2,178,997
LONG-TERM DEBTORS Adjustable Ch$ 161,203 186,310
L-T DOC. REC. REL. CO'S. Adjustable Ch$ 22,598,303 21,253,711
DEFERRED TAX Non-adjust Ch$ 0 0
OTHERS Dollars 13,385,201 9,612,205
OTHERS Adjustable Ch$ 0 0
Total Assets
Non-adjust. Ch$ 33,896,885 28,416,577
Dollars 79,314,729 34,738,076
Adjustable Ch$ 253,293,398 252,049,977
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - CURRENT LIABILITIES
Up to 90 days
---------------------------------------------------
03-31-2003 03-31-2002
---------------------- -----------------------
Avg. Avg.
ITEM Currency Amount Annual Amount Annual
---- -------- --------- ------ ------ ---------
Thou Ch$ Int. Rate Thou Ch$ Int. Rate
Current Liabilities
Long-Term Obligations
1-year maturity Dollars 445,744 - 19,554,244 3.375
Obligations with public Adjustable Ch$ 748,203 - - -
Dividend Payable Non-adjust. Ch$ 77,453 - 69,650 -
Accounts Payable Non-adjust. Ch$ 2,127,914 - 1,893,690 -
Documents Payable Dollars 4,142,922 - 2,222,788 -
Documents Payable Other Currencies - - 315,527 -
Miscellaneous Creditors Dollars 770,446 - - -
Miscellaneous Creditors Non-adjust. Ch$ 587,381 - 494,856
Doc. and Accts. Payable rel Co Adjustable Ch$ 6,446 - 24,208 -
Doc. and Accts. Payable rel Co Non-adjust. Ch$ 140,145 - 238,896 -
Reserves Rel. Co. Adjustable Ch$ - - - -
Reserves Dollars - - - -
Reserves Non-adjust. Ch$ 3,312,051 - 5,388,787 -
Withholding Non-adjust. Ch$ 743,989 - -977,809 -
Other Current Liabilities Dollars 897,794 - 3,652,650 -
Deferred taxes Non-adjust. Ch$ - - - -
Total Current Liabilities
Dollars 6,256,906 - 25,429,682 -
Adjustable Ch$ 754,649 - 24,208 -
Non-adjust. Ch$ 6,988,933 - -9,063,688 -
Other Currencies - - 315,527 -
90 Days to 1 Year
-----------------------------------------------
03-31-2003 03-31-2002
---------------- -------------------
Avg. Avg.
ITEM Currency Amount Annual Amount Annual
---- -------- ------ ------ ------ ------
Thou Ch$ Int. Rate Thou Ch$ Int. Rate
Current Liabilities
Long-Term Obligations - - - -
1-year maturity Dollars
Obligations with public Adjustable Ch$ - - - -
Dividend Payable Non-adjust. Ch$ - - - -
Accounts Payable Non-adjust. Ch$ - - - -
Documents Payable Dollars - - - -
Documents Payable Other Currencies - - - -
Miscellaneous Creditors Dollars - - - -
Miscellaneous Creditors Non-adjust. Ch$
Doc. and Accts. Payable rel Co Adjustable Ch$ - - - -
Doc. and Accts. Payable rel Co Non-adjust. Ch$ - - - -
Reserves Rel. Co. Adjustable Ch$ 171,373 - 143,925 -
Reserves Dollars 1,170,334 - 1,157,401 -
Reserves Non-adjust. Ch$ - - - -
Withholding Non-adjust. Ch$ - - - -
Other Current Liabilities Dollars - - - -
Deferred taxes Non-adjust. Ch$ - - - -
Total Current Liabilities
Dollars 1,170,334 - 1,157,401 -
Adjustable Ch$ 171,373 - 143,925 -
Non-adjust. Ch$ - - - -
Other Currencies - - - -
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES CURRENT PERIOD
03-31-2003
ITEM Currency 1-3 Years 3-5 years
---- -------- --------------------------- --------------------------
Amount Average Amount Average
-------- ------------- ------- -------------
Thou Ch$ Interest Rate Thou Ch$ Interest Rate
Obligations with Banks and Dollars - - 36,578,000 2,675
Financial Institutions
Obligations with public bond Adjust. Ch$ - - - -
Serie C
Obligations with public bond Adjust. Ch$ - - - -
Serie D
Long-term Creditors Adjust. Ch$ 44,377 - - -
Long-term Creditors Dollars 198,004 11.06 - -
Long-term Reserves Dollars 2,098,052 - - -
Long-term Reserves Adjust. Ch$ 3,965,228 - - -
Deferred Taxes Non-adjust. Ch$ 2,379,810 - - -
Total Long-term Liabilities
Dollars 2,296,056 - 36,578,000 -
Adjust. Ch$ 4,009,605 - - -
Non-adjust. Ch$ 2,379,810 - - -
ITEM Currency 5-10 Years More than 10 years
---- -------- ------------------------- --------------------------
Amount Average Amount Average
-------- ------------- ------- -------------
Thou Ch$ Interest Rate Thou Ch$ Interest Rate
Obligations with Banks and Dollars - - - -
Financial Institutions
Obligations with public bond Adjust. Ch$ 33,567,200 4.75 - -
Serie C
Obligations with public bond Adjust. Ch$ - - 35,245,560 5.8
Serie D
Long-term Creditors Adjust. Ch$ - - - -
Long-term Creditors Dollars - - - -
Long-term Reserves Dollars - - - -
Long-term Reserves Adjust. Ch$ - - - -
Deferred Taxes Non-adjust. Ch$ - - - -
Total Long-term Liabilities
Dollars - - - -
Adjust. Ch$ 33,567,200 - 35,245,560
Non-adjust. Ch$ - - - -
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES PREVIOUS PERIOD
03-31-2002
ITEM Currency 1-3 Years 3-5 years
---- -------- --------------------------- --------------------------
Amount Average Amount Average
-------- ------------- ------- -------------
Thou Ch$ Interest Rate Thou Ch$ Interest Rate
Obligations with banks and Dollars 38,904,240 2.675 9,726,060 2.675
financial institutions
Deferred Customs Duties Dollars 407,458 11.06 763,323 11.06
Long-term Creditors Adjust. Ch$ 59,716 - - -
Long-term Reserves Dollars 3,424,202 - - -
Long-term Reserves Adjustable Ch$ 3,740,779 - - -
Deferred Taxes Non-adjust. Ch$ 1,147,845 - - -
- - -
Total Long-term Liabilities
- Dollars 42,735,900 - 10,489,383 -
- Adjust. Ch$ 3,800,495 - - -
- Non-adjust. Ch$ 1,147,845 - - -
ITEM Currency 5-10 Years More than 10 years
---- -------- ------------------------- --------------------------
Amount Average Amount Average
-------- ------------- ------- -------------
Thou Ch$ Interest Rate Thou Ch$ Interest Rate
Obligations with banks and Dollars - - - -
financial institutions
Deferred Customs Duties Dollars - - - -
Long-term Creditors Adjust. Ch$
Long-term Reserves Dollars - - - -
Long-term Reserves Adjustable Ch$
Deferred Taxes Non-adjust. Ch$ - - - -
- - - -
- - - -
Total Long-term Liabilities - - - -
- Dollars - - - -
- Adjust. Ch$
- Non-adjust. Ch$
- - - -
38. Penalties
In the 2003 and 2002 fiscal years no penalties have been applied to the
company, to the members of the Board or Company Managers by the SVS or other
administrative authorities.
39. Subsequent Events
On April 15, 2003, in the General Regular Shareholders Meeting the following
agreements were reached:
a) ANNUAL REPORT AND BALANCE AS OF DECEMBER 31, 2002
The annual report, balance and distribution of the fiscal year profits
finished at December 31, 2002 were approved.
b) DEFINITIVE DIVIDEND N(degree) 153 DISTRIBUTION
The distribution of final dividend No. 153 of Ch$86.35 per share was approved.
The dividend was paid to registered shareholders starting on April 28, 2003
through Banco Bice.
c) DIVIDEND POLICY
The Board approved to distribute 40% of the fiscal year net income and credit
to reserve the remaining in order to maintain the Company's growth.
On the other hand the Board was authorized to grant interim dividends with
charge to fiscal years' net income, and to distribute eventual dividends, with
charge to future dividends fund, without having to summon a new general
shareholders meeting. Such distribution would take place as long as the
country's and the Company's economic situation would allow it.
d) BOARD ELECTION
An election of the Board was carried out, which is now integrated by: Mr.
Ricardo Claro Valdes, Mr. Jaime Claro Valdes, Mr. Joaquin Barros Fontaine, Mr.
Patricio Claro Grez, Mr. Gustavo de la Cerda Acuna, Mr. Cristian Eyzaguirre
Johnston, Mr. Juan A. Figueroa Yavar, Mr. Patricio Garcia Dominguez, Mr.
Baltazar Sanchez Guzman, and Mr. Alfonso Swett Saavedra.
In a Board sesion carried out following the shareholders meeting Mr. Ricardo
Claro Valdes was appointed Chairman of the Company and Mr. Baltazar Sanchez
Guzman was appointed Vice-Chairman of the Company.
e) EXTERNAL AUDITORS DESIGNATION
According to Art. N(degree)52 of the law 18,046 the shareholders meeting
appointed Ernest & Young Ltda., as external auditors for year 2003.
e) NEWSPAPER DESIGNATION
According to Art. N(degree) 59 of Public Companies, the newspaper in which
shareholders meeting summons would be effected was designated. "El Diario
Financiero" was designated for this effect.
g) BOARD COMMITTEE
In board session effected following the regular general shareholders meeting
the board committee members were elected, according to Art. No. 50 bis
Act 18,046. The independent
directors named were Mr. Joaquin Barros Fontaine and Mr. Patricio Claro Grez,
and as a representative director of the controlling group Mr. Juan A.
Figuieroa Yavar.
Since the date of the closing of financial statements and the date of issue of
the present report no subsequent events that could significantly affect the
Company's financial and economic situation have been registered.
40. Environment
Following its permanent concern to preserve the environment, as of March 31,
2003 the Company has made investments of Th Ch$ 163,452 for the repair of an
electrostatic precipitator to filter the gases issued by our smelting
processes. The company thereby continues in compliance with the emission norms
for particulate material, dictated by the fiscalizing agents.
41. TIME DEPOSITS
At March 31, 2003 and 2002 the Company presents the following information:
INSTITUTION Currency 2003 2002
Th Ch$ Th Ch$
Banco de A. Edwards (Chile) US$ 2,606,863 0
Banco Credito e Inversiones US$ 0 5,926,879
Banco Deutsche Bank Chile S.A. US$ 2,064,301 0
Banco J.P. Morgan Chase Bank US$ 341,299 0
Banco Santander US$ 2,483,315 0
Banco Scotiabank US$ 0 8,634,367
Banco de A. Edwards (Chile) $ 3,000,000 0
Banco Santander $ 924,992 0
Banco Santiago $ 0 3,130,234
Banco Scotiabank $ 5,009,100 0
---------- -----------
TOTAL 16,429,870 17,691,480
========== ==========
42. STOCK TRANSACTIONS
During 2003 and 2002 fiscal years members of the board, controlling
stockholders, related individuals and entities did not carry out stock
transactions.
43. DISTRIBUTION OF SHAREHOLDERS
The distribution of stockholders as of March 31, 2003 and 2002 is the
following:
% of Shareholding No. of Shareholders
------------------------ -------------------
TYPE OF SHAREHOLDER 2003 2002 2003 2002
------------------- ---- ---- ---- ----
10% or more shareholding 34.03 34.03 1 1
Less than 10% shareholding
with investment equal to or
higher than 200 UF 65.82 65.81 261 261
Less than 10% shareholding
with investment lower than
200 UF 0.15 0.16 815 831
TOTAL 100.00 100.00 1,077 1,093
CONTROLLER OF
THE COMPANY 52.14 52.14 3 3
44. BOARD COMPENSATION
During the years 2003 and 2002 provisions were made for participation in net
income in the amount of Th Ch$ 879,269 and Th Ch$ 745,136 , respectively,
according to the following detail:
2003 2002
---- ----
ThCh$ ThCh$
Participation in previous fiscal year profits 706,426 737,836
Provision of fiscal year 172,843 7,300
-------- ---------
TOTAL 879,269 745,136
======== ========
RATIO ANALYSIS
RATIO ANALYSIS OF THE INDIVIDUAL FINANCIAL STATEMENTS AS OF MARCH 31, 2003.
CRISTALERIAS DE CHILE S.A.
NOTES TO FINANCIAL STATEMENTS AS OF MARCH 31, 2003 AND 2002
1.- FINANCIAL INDICATORS
03-31-2003 03-31-2002 12-31-2002
---------- ---------- ----------
LIQUIDITY
Current liquidity times 7.25 1.78 6.72
Acid ratio times 6.75 1.54 6.25
DEBT
Debt ratio times 0.55 0.43 0.56
Short-term debt % 11.85 38.30 12.40
Long-term debt % 88.15 61.70 87.60
Interest expenses coverage times 4.98 1.86 5.25
ACTIVITY
Total assets MM Ch$ 366,505 315,205 362,567
Investments MM Ch$ 4,924 2,748 10,006
Disposal of property MM Ch$ 57 3 18
Inventory turnover times 10.5 7.1 9.1
Inventory permanence days 34,4 50,6 39,6
RESULTS
Operating income MM Ch$ 17,448 15,664 71,412
Operating costs MM Ch$ 10,363 9,443 41,652
Operating result MM Ch$ 5,850 5,144 24,109
Interest expenses MM Ch$ 1,235 673 4,642
Non-operating income MM Ch$ (499) (4,112) (2,305)
R.A.I.I.D.A.I.E. (EBITDA) MM Ch$ 8,496 3,489 33,602
After-tax profit MM Ch$ 4,321 183 17,749
RATE OF RETURN
Return on equity % 1.9 0.1 7.9
Return on assets % 1.3 0.1 5.2
Return on operating assets % 11.9 5.2 24.3
Profit per share $ 67.5 2.7 277.3
Return on dividends % 2.6 3.2 2.9
Current liquidity Ratio of current assets to current liabilities.
Acid ratio: Ratio of available funds to current liabilities.
Debt ratio: Ratio of total current liabilities to net worth.
Coverage of Interest Expenses: Earnings before interest and taxes divided by
interest expenses.
Inventory turnover: Ratio between sales cost of the period and
average inventory.
Inventory permanence: Ratio between average inventory and sales cost
of the period, multiplied by 360 days
R.A.I.I.D.A.I.E. (EBITDA) Earnings before interest, taxes,
depreciation and amortization, and special
items.
Return on dividends: Sum of dividends paid in the last twelve months
divided by market price of shares at closing of
period.
The main trends observed in the first quarter 2003 indicators are:
LIQUIDITY INDICES
An increase in the index can be observed with respect to March 2002 in the
liquidity indeces due to the payment of short-term bank debt and due to the
fact that funds obtained from the bond placement in August 2002 were placeed
in short-term financial instruments.
With respect to December 2002, an increase in the liquidity indeces can be
observed due to the period's net income, which allowed an increase in
current assets.
INDEBTEDNESS INDICES
The indebtedness index shows an increase compared with March 2002, due to the
long-term bond placement effected in August 2002, which resulted in an
increase of commited liabilities, partially compensated by a US$50 million
prepayment of a syndicated loan.
The short-term and long-term debt distribution shows a decrease in short-term
debt, due to the financing decisions effected in fiscal year 2002, which
resulted in the restructuring of the syndicated loan.
The interest expenses coverage index registered a slight decrease with respect
to the previous year due to the higher expenses associated with the bond issue
effected in August 2002.
ACTIVITY INDICES
The Inventory turnover and inventory permanence indeces improved due to
measures taken by the Company's management in order to decrease inventory.
PROFITABILITY INDICES
The equity and assets profitability indices show an increase with respect to
the first quarter of 2002 due to a higher net income during the present
quarter, which in turn is due to higher operating income as a result of higher
sales.
Likewise, the non-operating loss decreased due to better results in
subsidiaries as well as a positive exchange rate difference.
On the other hand, the return of dividends indexs shows an drop compared with
the previous year due to an increase in the price of the share in the stock
exchange and lower dividends paid during the period.
2. DIFFERENCE BETWEEN BOOK VALUE AND MARKET VALUE OF
MAIN ASSETS.
The financial statements of the company have been prepared according to
generally accepted accounting principles and general and specific norms of the
Securities and Insurance Commission, which is the agency that regulates the
Company. The valuation of the assets includes adjustment for currency
devaluation, reserves, and technical
revaluations. We believe the foregoing is a reasonable way to value the
Company's permanent investments.
As of March 31, 2003, there were financial investments in stocks recorded
according to their purchase price of Th Ch$ 3,830 million whose market value
on the same date was Th Ch$5,802 million. Likewise, Ch$ 55,388 million are
recorded as fixed rate marketable securities, whose market value reaches Ch$
55,821 million.
3. RESULTS AS OF MARCH 2003
3a. Individual Result
The Company had non-consolidated sales of Ch$17,448 million as of March 2003,
which represents a 11.4% increase compared to the previous period. Volumes
sold increased by 8.1%, reaching 58,267 tons. This volume level is mainly due
to higher sales of bottles for the wine and non-returnable beer markets.
Operating income rose by 13.7%, reaching Ch$5,850 million due to a higher
sales volume.
The Company's net income reached Ch$ 4,321 million, compared to Ch$ 183
million in 2002. This result is partially explained by a higher operating
income, and mainly by the non-operating income, that passed from a Ch$4,112
million loss in 2002 to a Ch$499 million loss in 2003. During 2003 a higher
income wqas registered from Cristalchile Inversiones, Vina Santa Rita and
Envases CMF, a positive exchange rate difference of Ch$ 1,336 million and a
lower loss in Cristalchile Comunicaciones (Ch$ 1,505 million in 2003 and Ch$
2,482 million in 2002). Additionally, a higher loss was registered from CIECSA
(Ch$ 437 million in 2003, Ch$ 256 million in 2002) and higher interest
expenses that reached Ch$ 1,235 million (Ch$ 673 million in 2002).
3b. Result in Subsidiaries
In 2003, Santa Rita's net income reached Ch$ 1,205 million, 14.2% over 2002.
In the local market, the Company attained volumes that were 10.6% higher than
in year 2002. Prices in this market dropped by 5.6% in real terms, as a result
of increased competition and lower cost of musts. Sales in the local market
increased by 4.5%. Volume sales in the export market increased by 4.0% due to
higher sales to the Canadian and Latin American markets. During the period,
exports represented 54.5% of total revenues in the amount of US$ 11 million.
The operating income increased by 6.6%, reaching Ch$1.650 million, mainly as a
result of the increase in volumes in the export and local markets and the
depreciation of the Chilean Peso vs. the U.S. Dollar. The average price in
dollars per case of Santa Rita for the export market was US$ 31.4, whereas the
average price for the industry was US$23.5 per case. Santa Rita's
non-operating income was Ch$24 million, compared to a Ch$271 million
non-operating loss in 2002.
Red Televisiva Megavision, CIECSA's main subsidiary, registered a Ch$90
million operating loss, compared with an operating income of Ch$43 million in
2002, due to higher internal productions that resulted in increased costs.
MEGA reached a 22.9% audience share during the period(21.7% in 2002)(1). Net
sales increased by 15.0% reaching Ch$ 4,329 million, due to an increase in
live programming, which has resulted in higher audience levels. As of March
2003, MEGA had a net loss of Ch$248 million, compared to a loss of Ch$194
million in 2002. CIECSA had a Ch$445 million net loss, compared to a Ch$266
milllion net loss in 2002.
Envases CMF S.A. registered a Ch$545 million net income in 2003 compared with
a Ch$292 million net income in 2002. The company increased net sales by 1.1%,
reaching Ch$ 8,857 million during the quarter. Sales volume dropped by 2.5%,
reaching 6,092 tons. Operating income reached Ch$1,174 million, 38.9% higher
than in 2002, mainly explained by sales of better margin products as well as
improved operating efficiencies. At the non-operating level the company passed
from a Ch$544 million loss in 2002 to a loss of Ch$357 million in 2003.
In the cable TV business, Cristalchile Comunicaciones S.A. (99.99% owned by
Cristalerias), is the owner of 50% of Cordillera Comunicaciones Ltda., which
in turn is the owner of 99.99% of Metropolis-Intercom S.A.
At March 31, 2003, Metropolis-Intercom S.A. registered sales of Ch$10,781
million compared with Ch$11,808 million during the same period the previous
year. As of March 2003, Metropolis-Intercom had a net loss of Ch$1,973 million
compared with a net loss of Ch$3,921 million in 2002. This result includes a
depreciation charge of Ch$3.204 million (Ch$2,772 million in 2002)
corresponding to the HFC network adquired in July 2000. The company ended the
period with 240,000 subscribers, a 2,9% lower compared with the same date in
2002, due to a greater number disconnections due to the deteriorated domestic
economic situation.
As a result of the abovementioned and the negative goodwill amortization
charge through Cordillera Comunicaciones of Ch$1,034 million in the period
(Ch$1,041 million in 2002), Cristalchile Comunicaciones recorded a net loss of
Ch$1,505 million (net loss of Ch$2,482 million in 2002).
4. CASH FLOW STATEMENT
During the first quarter of 2003 a total net positive flow of Ch$5,324 million
was generated, which is explained by a positive flow generated by operating
activities of Ch$10,025 million, which was drooped by a negative financing
flow of Ch$1,338 million and a negative flow of investment activities of
Ch$3,363 million.
The operating flow corresponds basically to the collection of sales and
interest income, that were reduced by payment to suppliers, personnel, income
tax and interests.
The negative financing flow can be explained by the payment of dividends for
the same amount.
The investment flow is mainly explained by the collection of loans to related
companies for Ch$ 889 million and the expiry of future contracts for Ch$ 968
million. This flow was used in the incorporation of fixed assets for Ch$
5,259.
The above mentioned results in an increase in the final balance of cash and
cash equivalent, which passed from Ch$73,628 million as of December 31, 2002
to $78,548 million as of March 31, 2003.
According to the current regulations of the SVS and the Association of
Accountants of Chile, term deposits and agreements with due date less than 90
days have been considered as cash and cash equivalent.
5. INTEREST RATES AND EXCHANGE RATE RISK ANALYSIS
a. Interest rates
The Company is exposed to the risk of fluctuations in interest rates on its
long-term debt, corresponding to a credit of US$50 million, which was
renegotiated in October 2002 at a variable annual rate of LIBOR plus 0.8%. In
addition, the Company issued bonds for a total of UF 4.1 million, for a period
of 6 and 21 years, and which pay a fixed rate of 4.75% and 5.8% respectively
(the actual placement rate was 5.3% and 6.5% respectively).
As of March 31, 2003, the Company had available funds in the amount of
Ch$77,555 million, invested at different terms in financial instruments such
as time deposits, bonds, fixed rate mutual funds and agreements with resale
commitment. This amount does not include bonds for Ch$ 9,988 million with
maturity on September 15, 2005 and investments in shares for Ch$ 3,830
million.
Currently the Company does not use secondary financial instruments to reduce
risk in the event of fluctuations in interest rates. This policy will be
studied permanently to evaluate the alternatives offered by the market.
b. Exchange rate
The Company maintains liabilities in dollars of US$63,3 million, which
represent 12.6% of its assets, and which include a balance of a long-term
syndicated loan of US$50 million.
As of March 31, the Company has investments in dollars of US$103 million in
time deposits, bonds and fixed rate mutual funds. In addition, it also has
Dollar purchase future contracts of US$109.6 million.
On the other hand, aproximately 35% of the company's revenues are adjustement
by the exchange rate variation. Costs in foreing currency represent
approximately 25% of the total cost.
RELEVANT EVENTS
RELEVANT EVENTS
During the first quarter of 2003 no relevant events have been registered.
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1 Measured between 7:30 A.M. and 1:30 A.M. (i.e:18 hours daily) from
Monday through Sunday.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Glassworks of Chile
(Registrant)
By: Benito Bustamante C.
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Benito Bustamante C.
Comptroller
Date: July 2, 2003