SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15b-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For July 30, 2002
Glassworks of Chile
----------------------------
(Translation of registrant's name into English)
Hendaya 60, OF. 201
------------------------------
Las Condes
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Santiago
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Chile
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(Address of principal executive offices)
Form 20-F /X/ Form 40-F
--
Indicate by check mark whether the registrant by furnishing
the information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.
Yes__ No /X/
--
Cristalerias de Chile S.A. (THE "COMPANY")
REPORT ON FORM 6-K
TABLE OF CONTENTS
(1) Quarterly consolidated financial statements of the Company for the quarter
ended March 31, 2002.
(2) Quarterly individual financial statements of the Company for the quarter
ended March 31, 2002.
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 1/1/2002
1.00.01.21 Closing date 3/31/2002
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: Chilean pesos
1.00.01.40 Type of Balance : Consolidated
ASSETS NOTE No. 03-31-02 03-31-01
5.11.00.00 TOTAL CURRENT ASSETS 124,378,279 131,692,862
5.11.10.10 Cash 2,031,598 2,518,635
5.11.10.20 Time deposits 40 23,302,604 37,434,748
5.11.10.30 Marketable securities (net) 4 13,303,701 8,063,981
5.11.10.40 Debtors from sales (net) 5 27,242,548 29,470,514
5.11.10.50 Documents receivable (net) 5 4,635,345 3,388,030
5.11.10.60 Sundry debtors (net) 5 812,772 1,044,366
5.11.10.70 Doc. & accts receivable 6 488,722 204,611
related Co.
5.11.10.80 Inventories (net) 7 30,995,893 37,560,367
5.11.10.90 Recoverable taxes 8 2,072,601 2,467,231
5.11.20.10 Prepaid expenses 1,014,398 840,417
5.11.20.20 Deferred taxes 8 1,299,662 806,783
5.11.20.30 Other current assets 9 17,178,453 7,893,179
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 11 129,032,131 138,239,491
5.12.10.00 Land 11 12,881,010 12,752,372
5.12.20.00 High rises & infrastructure 11 52,122,107 51,314,423
5.12.30.00 Machinery & equipment 11 126,288,725 116,930,327
5.12.40.00 Other fixed assets 11 12,618,982 30,909,039
5.12.50.00 Positive goodwill from 11 8,253,185 10,220,649
technical revaluation of
fixed assets
5.12.60.00 Depreciation (minus) 11 83,131,878 83,887,319
5.13.00.00 TOTAL OTHER ASSETS 139,727,705 123,506,999
5.13.10.10 Investment in related companies 13 107,308,418 98,265,800
5.13.10.20 Investment in other companies 14 1,431,275 1,558,977
5.13.10.30 Negative goodwill 15 8,729,892 10,208,006
5.13.10.40 Positive goodwill (minus) 0 0
5.13.10.50 Long-term debtors 5 210,831 152,619
5.13.10.60 Doc. & accts receivable 6 1,329 36,612
related Co.
5.13.10.65 Long-term deferred taxes 8 0 0
5.13.10.70 Intangibles 16 11,205,099 11,051,586
5.13.10.80 Amortization (minus) 832,326 707,127
5.13.10.90 Other 17 11,673,187 2,940,526
5.13.20.10 Long-term leasing contracts
(net)
5.10.00 TOTAL ASSETS 393,138,133 393,439,352
LIABILITIES
1.00.01.30 Type of Currency: Chilean pesos
1.00.01.40 Type of Balance : Consolidated
LIABILITIES NOTE No. 03-31-02 03-31-01
5.21.00.00 TOTAL CURRENT LIABILITIES 60,195,606 56,287,526
5.21.10.10 Short-term oblig. Banks & 18 1,014,007 4,948,750
Fin. Inst.
5.21.10.20 Short-term portion - Long-term 18 24,949,799 10,166,309
oblig. Banks &
Financial Institutions
5.21.10.30 Obligations with the public 0 0
(notes)
5.21.20.40 Short-term portion oblig with 21 562,210 427,408
public
5.21.10.50 Long-term oblig. due within 1 265,469 190,256
year
5.21.10.60 Dividends payable 67,895 52,230
5.21.10.70 Accounts payable 9,863,789 11,776,839
5.21.10.80 Notes payable 3,865,639 15,196,309
5.21.10.90 Sundry creditors 537,212 553,490
5.21.20.10 Notes & accts payable related 6 1,247,807 230,948
Co.
5.21.20.20 Provisions 22 10,143,938 8,185,446
5.21.20.30 Withholdings 1,999,474 1,287,130
5.21.20.40 Income tax 0 0
5.21.20.50 Earned income 1,672,814 2,966,065
5.21.20.60 Deferred taxes 8 0 0
5.21.20.70 Other current liabilities 19 4,005,553 306,346
5.22.00.00 TOTAL LONG-TERM LIABILITIES 85,511,029 100,149,555
5.22.10.00 Oblig with Banks & Financial 20 54,848,585 68,532,696
Inst.
5.22.20.00 Long-term oblig with public 21 19,842,134 20,406,526
(bonds)
5.22.30.00 Long-term notes payable 36,612 90,425
5.22.40.00 Long-term sundry debtors 1,593,657 1,760,787
5.22.50.00 Long-term notes & accts. 6 0 0
payable related companies
5.22.60.00 Long-term provisions 22 6,902,679 8,936,808
5.22.70.00 Long-term deferred taxes 8 2,287,362 422,313
5.22.80.00 Other long-term liabilities 0 0
5.23.00.00 MINORITY INTEREST 25 34,621,695 32,432,331
5.24.00.00 TOTAL EQUITY 212,809,803 204,569,940
5. 24.10.00 Paid-in capital 26 62,863,356 62,497,517
5. 24.20.00 Reserve capital revaluation 26 -251,453 62,497
5. 24.30.00 Premium in sale of own shares 26 26,687,378 26,665,262
5. 24.40.00 Other reserves 26 8,009,974 6,889,810
5. 24.50.00 Retained earnings (addition 115,500,548 108,454,854
of codes 5.24.51.00 to
5.24.56.00)
5.24.51.00 Reserve future 26 102,386,923 93,663,612
dividends
5.24.52.00 Accrued profits 26 13,060,432 13,220,913
5.24.53.00 Accrued losses (minus) 26 0 0
5.24.54.00 Profit 26 175,829 1,737,539
(loss) for the year
5.24.55.00 Prov. dividends (minus) 26 0 0
5.24.56.00 Accr. deficit dev. 26 -122,636 -167,210
period
5.20.00.00 TOTAL LIABILITIES 393,138,133 393,439,352
INCOME STATEMENT
2.02 INCOME STATEMENT
1.00.01.30 Type of Currency: Chilean pesos
1.00.01.40 Type of Balance : Consolidated
INCOME STATEMENT NOTE No. 03-31-02 03-31-01
5.31.11.00 OPERATING RESULTS 6,465,408 6,109,677
5.31.11.10 Operating Margin 11,148,342 11,084,526
5.31.11.11 Operating income 30,088,479 33,322,718
5.31.11.12 Operating costs 18,940,137 22,238,192
(minus)
5.31.11.20 Adm. & sales expenses 4,682,934 4,974,849
(minus)
5.31.12.00 NON-OPERATING RESULTS -4,890,914 -4,277,516
5.31.12.10 Interest income 615,955 703,552
5.31.12.20 Profit investments 13 171,514 184,107
related Co.
5.31.12.30 Other non-operating 27 231,488 326,912
income
5.31.12.40 Profit investments 13 3,966,472 2,472,618
rel- Co. (-)
5.31.12.50 Amortization 15 140,068 168,232
neg.goodwill (-)
5.31.12.60 Interest expenses (minus) 1,230,403 2,067,817
5.31.12.70 Other non-operat expenses (-) 27 407,939 389,083
5.31.12.80 Price level restatement 28 -155,632 -127,838
5.31.12.90 Exchange differences 29 -9,357 -266,499
5.31.10.00 RESULTS BEFORE INCOME TAX 1,574,494 1,832,161
AND EXTRAORDINARY ITEMS
5.31.20.00 INCOME TAX 8 -983,013 -923,539
5.31.30.00 EXTRAORDINARY ITEMS 30 0 975,800
5.31.40.00 PROFIT (LOSS) BEFORE MINORITY INTEREST 591,481 1,884,422
5.31.50.00 MINORITY INTEREST 25 -415,652 -146,883
5.31.00.00 NET PROFIT (LOSS) 175,829 1,737,539
5.32.00.00 Amortization of positive goodwill 0 0
5.30.00.00 PROFIT (LOSS) FOR THE YEAR 175,829 1,737,539
DIRECT CASH FLOW STATEMENT
2.03 CASH FLOW STATEMENT
1.00.01.30 Type of Currency: Chilean pesos
1.00.01.40 Type of Balance : Consolidated
DIRECT CASH FLOW STATEMENT NOTE No. 03-31-02 03-31-01
5.41.11.00 NET FLOW FROM OP. ACT. 11,159,032 10,465,896
5.41.11.10 Collection from sales debtors 40,820,905 59,480,791
5.31.11.20 Interests received 493,149 1,181,477
5.31.11.30 Dividends & other distributions 44,854 86,189
funds received
5.31.11.40 Other income 32 406,649 292,679
5.31.11.50 Payments to suppliers & personnel (-) 25,720,862 46,175,169
5.31.11.60 Interest paid (minus) 753,334 1,205,872
5.31.11.70 Income tax paid (minus) 1,000,013 777,754
5.31.11.80 Other expenses 32 283,867 327,532
5.31.11.90 V.A.T. & other taxes 2,848,449 2,088,913
5.41.12.00 CASH FLOW FINANCING ACTIVITIES -2,605,990 16,367,666
5.41.12.05 Proceeds from share issue 16,643 103,322
5.41.12.10 Loans received 0 324,091
5.41.12.15 Obligations with the public 0 18,165,473
5.41.12.20 Secured loans from related companies 899,534 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) 1,879,581 1,396,798
5.41.12.40 Capital distributions (minus) 0 0
5.41.12.45 Repayment of loans (minus) 1,089,801 788,959
5.41.12.50 Payment of obligations with the public (-) 0 0
5.41.12.55 Repayment of secured loans from rel Co. (-) 552,785 0
5.41.12.60 Repayment other loans from 0 0
related Co. (-)
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) 32 0 39,463
5.41.13.00 CASH FLOW FROM INVESTING ACTIVITIES 444,213 -25,736,431
5.41.13.05 Sale of fixed assets 8,355 41,394
5.41.13.10 Sale of permanent investments 0 0
5.41.13.15 Sale of other investments 32 4,931,553 1,258,617
5.41.13.20 Proceeds secured loans to related Comp. 0 5,763
5.41.13.25 Proceeds other loans to related 32,505 24,455
companies
5.41.13.30 Other investment income 32 1,829,664 500,867
5.41.13.35 Incorporation of fixed assets (minus) 4,463,535 11,467,755
5.41.13.40 Capitalized interests payment (minus) 0 0
5.41.13.45 Permanent Investments 35,649 57,790
5.41.13.50 Investments in financial 1,517,440 15,885,389
instruments (minus)
5.41.13.55 Other loans to related companies (minus) 2,575 0
5.41.13.60 Other loans to related companies (minus) 1,984 140,323
5.41.13.65 Other distrib of funds on invest 32 336,681 17,270
activities (-)
5.41.00.00 TOTAL NET CASH FLOW FOR THE PERIOD 8,997,255 1,097,131
5.42.20.00 EFFECT OF INFLATION ON CASH & CASH EQUIV. 190,103 -28,567
5.41.00.00 NET CHANGE IN & CASH EQUIVALENT 9,187,358 1,068,564
5.42.00.00 CASH & CASH EQUI AT BEGINNING OF PERIOD 37,649,160 28,534,141
5.43.00.00 CASH & CASH EQUIV BALANCE AT END OF PERIOD 46,836,518 29,602,705
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: Chilean pesos
1.00.01.40 Type of Balance : Consolidated
CASH FLOW - INCOME STATEMENT RECONCILIATION NOTE No. 03-31-02 03-31-01
5.50.10.00 Profit (Loss) for the year 175,829 1,737,539
5.50.20.00 Profit (Loss) in sale of assets 13,518 -4,503
5.50.20.10 (Profit) Loss in sale of fixed assets 13,518 -4,503
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) 8,395,527 4,884,796
5.50.30.05 Depreciation for the year 11 3,228,069 3,030,580
5.50.30.10 Amortization of intangibles 288,644 93,347
5.50.30.15 Write-offs and provisions 1,021,315 408,144
5.50.30.20 Accrued earnings from investments in 13 171,514 184,107
related companies (minus)
5.50.30.25 Accured losses from investments in 13 3,966,472 2,472,618
related Co.
5.50.30.30 Negative goodwill amortization 15 140,068 168,232
5.50.30.35 Positive goodwill amortization (minus) 0 0
5.50.30.40 Price level restatement 28 155,632 127,838
5.50.30.45 Net exchange difference 29 9,357 266,499
5.50.30.50 Other non-cash credits to results (minus) 331,218 1,777,670
5.50.30.55 Other non-cash debits to results 88,702 279,315
5.50.40.00 Changes in Assets affecting cash flow (incr) -2,615,530 55,843
decreases
5.50.40.10 Debtors from sales -612,652 5,553,261
5.50.40.20 Inventory -2,146,907 -4,055,553
5.50.40.30 Other assets 144,029 -1,441,865
5.50.50.00 Changes in liabilities affecting cash flow 4,774,036 3,645,338
increases (decr)
5.50.50.10 Accounts payable related to results for 5,591,654 1,387,136
the year
5.50.50.20 Interests payable 467,990 257,410
5.50.50.30 Income tax payable (net) -344,384 849,841
5.50.50.40 Other accounts payable related to -690,103 1,165,804
non-oper results
5.50.50.50 VAT and other taxes payable (net) -251,121 -14,853
5.50.60.00 Profit (Loss) of minority interest 25 415,652 146,883
5.50.00.00 NET OPERATING CASH FLOW 11,159,032 10,465,896
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 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).
02. Applied Accounting Criteria
APPLIED ACCOUNTING CRITERIA
a) Accounting Period
These financial statements correspond to the period between January 1 and
March 31 of 2002 and 2001.
b) Preparation basis of financial statements:
These consolidated financial statements as of March 31, 2002 and 2001 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 2001 fiscal year are presented updated according to
non-accounting terms as of March 31, 2002 by 2.5%.
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.
As of March 2002, the parent company has not included Envases CMF S.A. in the
consolidation due to the reduction of Cristalchile's stake in this company
from 99.99% to 50%, as explained in note 13.
Ciecsa's results includes the balances of its subsidiary, Red Televisiva
Megavision S.A., in which it has a 78.01% stake. As of the third quarter of
2001 the company did not consolidate the results of Ediciones Chiloe S.A.
because of the reduction in its stake in the company from 75% to 50%.
S.A. Vina Santa Rita's consolidated results includes the balances of its
subsidiaries Vina Carmen S.A., with a 99.9% stake in its net worth in 2002 and
2000, Vina Dona Paula S.A., with 100% stake in 2002 (in 2001 it was not
included in the consolidation), and Sur Andino S.A., with 100% stake in 2002
(it was created on March 1st, 2001).
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.
The subsidiary companies 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 2002 fiscal
year, which was -0.4% (0.1% in 2000).
f) Conversion Basis
Balances in foreign currency and indexed currency units have been converted to
pesos at the indicated parities:
2002 2001
Ch$ Ch$
U.S. Dollar 655.90 594.97
Canadian Dollar 412.13 377.64
Pound Sterling 34.96 843.93
Danish Crown 76.83 69.93
Swedish Crown 63.26 57.11
EURO 570.94
Unidad de Fomento 16,197.66 15,813.07
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, 2002.
Investments in stock are shown at the lower 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.
Investments carried out by the parent company in Celulosa Arauco bonds are
registered at par value, without adjusting to the market value because the
intent is to hold the bonds until maturity.
h) Inventory
Inventory of finished products has been valued as of March 31, 2002 and 2001
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.
j) Fixed Assets
The property in fixed assets is shown at the purchase cost plus legal and
regulatory revaluations accumulated until March 31, 2002 and 2001.
k) Depreciation of Fixed Assets
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.
As of March 31, 2002 Envases CMF S.A. (former Crowpla-Reicolite S.A.) has not
been included in the consolidation since the stake in that company was
decreased form 99.99% to 50% by assigning part of its corresponding option in
the capital injection effected by Crowpla-Reicolite S.A. to Andina Inversiones
Societarias S.A. on June 29, 2001.
p) Goodwill Amortization
Goodwill amortization resulted from comparing the price paid for the
investment with the proportional value 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, 2002 and 2001 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.
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 (Operating Income)
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. 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.
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."
CRISTALERIAS DE CHILE S.A.
NOTE 2 - ACCOUNTING CRITERIA USED - COMPANIES INCLUDED IN THE CONSOLIDATED
REPORT
Percentage of Shareholding
R.U.T. Company Name 03.31.2002 03.31.2001
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. 98.2102 0.0000 98.2102 98.0700
86.881.400-4 Envases CMF S.A. (Ex Crowpla Reicolite 50.0000 0.0000 50.0000 99.9900
S.A.)
86.547.900-K S.A. Vina Santa Rita 54.0970 0.0000 54.0970 54.0970
96972440-5 Cristalchile Inversiones S.A. 99.9900 0.0100 100.0000 0.0000
03. Accounting Changes
As of March 2002 and 2001, there have not been any changes in the accounting
criteria applied that affect the consolidated financial statements.
04. Marketable Securities
As of March 2002, investments in stocks in the amount of Th Ch$ 3,264,180,
investments in fixed rate mutual funds in the amount of Th US$ 9,986,843, and
Th US$ 52,678 for interests accrued in long-term bonds.
As of March 31, 2001, the investment in Central Bank PRC in the amount of Th
Ch$2,666,504 in 2000 and Th $5,766,464 in stocks and Th $31,013 in mutual
funds are included in this item.
CRISTALERIAS DE CHILE S.A.
NOTE 4 -MARKETABLE SECURITIES- BALANCE COMPOSITION
Type of Security Book Value
03-31-2002 03-31-2001
Shares 3,264,180 5,766,464
Bonds 52,678 0
Shares in mutual funds 9,986,843 31,013
Shares in investment funds 0 0
Public tender notes 0 2,266,504
Mortgage bonds 0 0
Total Marketable Securities 13,303,701 8,063,981
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES - SHARES
Unit Market
R.U.T. Company Name Number of Participation Market Investment Corrected
Shares Percentage Value Value Cost
Bodegas y Vinedos Santa
96.512.200-1 Emiliana S.A. 56,208,005 8.8380 92,510 5,199,803 3,264,180
Value Investment Portfolio 5,199,803 3,264,180
Adjustment Provision 0
Book value, Investment Portfolio 3,264,180
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES - SHARES - FIXED INTERST INSTRUMENTS
Date Annual Capital Placed Interests Accrued Current Placement
Institution Starting Maturity Rate US$ M$ US$ M$ US$ M$
JPM Institutional Money
Market Fund 02.28.2002 04.30.2002 1.7 14,698,213 9,640,558 21,517 14,112,706 14,719,730 9,654,685
JPM Institutional Money
Market Fund 03.15.2002 04.30.2002 1.7 466,345 305,876 352 231,106 466,697 306,107
Banedwards 01.01.2002 04.30.2002 0 26,050 26,050
Total 9,986,843
05. Short-Term and Long-Term Debtors
As of March 31, 2002 and 2001, there are balances short-term and long-term
debtors in the amount of Th $32,690,665 (Th $33,902,910 in 2001).
The bad debt reserve of Th $497,587 in 2002 (Th $496,413 in 2001) is shown
deducting the balances of Debtors from Sales and Documents receivable.
The balances of Short-term Debtors are shown net of Customer Advance Payments.
Also, there is a balance of Th $ 210,831 in Long Term Debtors in 2002 (Th
152,619 in 2001).
CRISTALERIAS DE CHILE S.A.
NOTE 5-SHORT AND LONG TERM DEBTORS
Current Assets
Over 90 days Long Term
Items Up to 90 days Up to 1 year Subtotal Total Current (net)
03-31-2002 03-31-2001 03-31-2002 03-31-2001 03-31-2002 03-31-2001 03-31-2002 03-31-2001
Debts from Sales 26,385,790 27,079,057 1,238,648 2,522,978 27,624,438 27,242,548 29,470,514 0 0
Estimate of bad
debtors 0 0 0 0 381,890 0 0 0 0
Documents receivable 4,714,607 3,417,762 36,435 43,436 4,751,042 4,635,345 3,388,030 0 0
Estimate of bad
debtors 0 0 0 0 115,697 0 0 0 0
Misc. debtors 787,883 1,017,667 24,889 26,699 812,772 812,772 1,044,366 210,831 152,619
Estimate of bad
debtors 0 0
Total Long Term
Debtors 210,831 152,619
06. Balances and Transactions with related entities
Balances receivable in the Short-Term as of March 31, 2002 that total Th
Ch$488,722 (Th Ch$204,611 in 2001) correspond mainly to a loan granted by the
subsidiary Ciecsa to Editorial Zig Zag for Th Ch$258,903 (Th Ch$150,182 in
2000) - including interests, with maturity on 04-30-2002 (Th Ch$ 96,060) and
on 05-31-2002 (Th Ch$162,843) at an annual interest rate of 6% and advertising
sold by Red Televisiva Megavision S.A. to Editorial Zig-Zag for Th $15,736 and
to Metropolis Intercom for Th $34,845.
Balances payable in the short term totaling Th Ch$1,247,807 in 2002 (Th
Ch$230,948 in 2001) correspond mainly to Th $201,150 for commercial
transactions over 90 days expressed in US Dollars that were realized between
the subsidiary Red Televisiva Megavision and the affiliated Cordillera
Comunicaciones Ltda. and Th $938,850 for transactions made by Red Televisiva
Megavision with Televisa Internacional S.A. de C.V., the balance corresponds
to commercial transactions under 90 days.
There are no Long-term Accounts Receivable recorded in 2002 and 2001.
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCE AND TRANSACTIONS WITH RELATED COMPANIES
DOCUMENTS AND ACCOUNTS RECEIVABLE
R.U.T. Company Short Term Long Term
03-31-2002 03-31-2001 03-31-2002 03-31-2001
90.684.000-6 Editorial Zig-Zag S.A. 274,639 150,397 0 0
89.150.900-6 Vina Los Vascos S.A. 176,199 0 0 0
96.826.870-8 Inmobiliaria Don Alberto S.A. 0 0 0 36,612
86881400-4 Envases CMF S.A. 59 0 0 0
90320000-6 Cia. Electro Metalurgica S.A. 86 3,756 0 0
0-E Rayen Cura SAIC 137 0 0 0
96.539.380-3 Ediciones Financieras S.A. 55 0 0 0
96.793.770-3 Ediciones Chiloe S.A. 0 0 1,329 0
96.566.900-0 Navarino S.A. 0 2,528 0 0
79753810-8 Claro y Cia. 137 0 0 0
96.787.775-1 Metropolis Intercom S.A. 34,845 25,155 0 0
96640360-8 Quemchi S.A. 0 3,352 0 0
0-E Televisa S.A. 0 13,994 0 0
83.032.100-4 Serv. Y Consultorias Hendaya 0 534 0 0
S.A.
95.819.000-K Costanera S.A. 0 2,709 0 0
90.160.000-7 Sudamericana de Vapores S.A. 1,903 2,186 0 0
77658870-9 Marketing Meter Ltda. 662 0 0 0
Total 488,722 204,611 1,329 36,612
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCES AND TRANSACTIONS UIT RELATED COMPANIES
DOCUMENTS AND ACCOUNTS PAYABLE
R.U.T. Company Short Term Long Term
03-31-2002 03-31-2001 03-31-2002 03-31-2001
78.619.370-2 Cordillera Comunicaciones Ltda. 201,150 187,026 0 0
89.150.900-6 Vina Los Vascos S.A. 15,890 15,673 0 0
79.753.810-8 Claro y Cia. 0 7,928 0 0
90.160.000-7 Cia. Sudamericana de Vapores S.A. 6,731 988 0 0
90320000-6 Cia. Electro Metalurgica S.A. 0 571 0 0
83.032.100-4 Serv. Y Consultorias Hendaya Ltda. 0 470 0 0
96.539.380-3 Ediciones Financieras 6,739 0 0 0
88.524.400-9 Distribucion Via Directa S.A. 0 16,309 0 0
96.787.750-6 Metropolis Intercom S.A. 13,661 0 0 0
86881400-4 Envases CMF S.A. 16,156 0 0 0
0-E Televisa Internacional S.A. De C.V. 983,850 0 0 0
83628100-4 Sonda S.A. 0 1,983 0 0
86963200-7 Forus S.A. 2,402 0 0 0
96.793.770-3 Ediciones Chiloe S.A. 176 0 0 0
77658870-9 Marketing Meter Ltda. 1,052 0 0 0
Total 1,247,807 230,948 0 0
CRISTALERIAS DE CHILE S.A. NOTE 6 - BALANCES AND TRANSACTIONS WITH RELATED
COMPANIES
TRANSACTIONS
03-31-2002 03-31-2001
Effect Effect
Description of on on
Company R.U.T. Relationship Transaction Amount Outcome Amount Outcome
Serv. Y Consultorias Majority
Hendaya S.A. 83.032.100-4 shareholder Services received 263,926 -263,926 276,452 -276,452
Majority
shareholder Products sold 0 0 3,353 0
Majority
shareholder Dividends paid 170,381 0 128,070 0
Majority
shareholder Services supplied 4,831 4,831 5,882 5,882
Majority Advertising &
Cia. Electro Metalurgica 90.320.000-6 shareholder subscrip. sold 0 0 1,950 1,950
S.A. Majority
shareholder Materials purchased 0 0 1,051 0
Majority
shareholder Dividends paid 653,400 0 491,139 0
Cia. Sud-Americana de
Vapores S.A. 90.160.000-7 Indirect affiliate Products sold 0 0 3,401 2,670
Indirect affiliate Freight services 12,265 0 228,865 -10,291
Indirect affiliate Advertising hired 26,667 26,667 0 0
Majority
Bayona S.A. 86.755.600-1 shareholder Dividends paid 177,376 0 133,328 0
Shareholder in
Televisa S.A. 0-E affiliate Services sold 0 0 21,056 21,056
Inversiones Pocuro Ltda.. 79.770.040-1 Indirect affiliate Subscription sales 0 0 87 87
Vina Los Vascos S.A. 89.150.900-6 Indirect affiliate Direct sales 165,933 43,230 86,953 24,030
Indirect affiliate Materials purchased 11,770 0 19,706 0
Inmobiliaria Don Alberto S.A. 96.826.870-8 Indirect affiliate Adjustments 0 0 99 99
Metropolis Intercom S.A. 96.787.750-6 Indirect affiliate Advertising hired 60,663 60,663 20,494 20,494
Distribucion Via Directa S.A. 89.524.400-7 Afiliate Advertising 0 0 35,418 -35,418
Afiliate Kiosk 0 0 15,399 15,399
Claro y Cia. 79.753.810-8 With the president Advice received 11,275 -11,275 20,370 -20,370
With the president Products sold 0 0 319 93
Navarino S.A. 96.566.900-0 Indirect affiliate Services supplied 2,435 2,435 2,428 2,428
Indirect affiliate Products sold 0 0 2,142 2,142
Quemchi S.A. 96.640.360-8 Indirect affiliate Services rendered 2,435 2,435 2,428 2,428
Indirect affiliate Loans granted 0 0 51,250 0
Indirect affiliate Loans repaid 0 0 51,250 0
Indirect affiliate Interests 0 0 156 156
Indirect affiliate Advertising sold 0 0 2,840 2,840
Rayen Cura S.A.I.C. 0-E Indirect affiliate Direct sales 0 0 14,543 4,728
Forus S.A. 86.963.200-7 Afiliate Advertising hired 18,700 18,700 0 0
Afiliate Services purchased 2,036 -2,036 0 0
Ediciones Financieras S.A. 96.793.770-3 Indirect affiliate Services received 3,135 -3,135 3,212 -3,212
Shareholder in
Sonda S.A. 83.628.100-4 affiliate Products sold 0 0 148 148
Shareholder in
affiliate Services purchased 0 0 1,753 1,753
Televisa Internacional Purchase of
S.A.C.V 0-E Afiliate exhibition material 877,266 877,266 0 0
07. Inventory
An itemized list of inventory, valued according to note 2 h), is presented on
an attached chart.
CRISTALERIAS DE CHILE S.A.
NOTE 7 - INVENTORY (Consolidated)
2002 2001
Th Ch$ Th Ch$
Finished Products
* Cristalerias de Chile S.A. 2,494,731 3,878,018
* S.A. Vina Santa Rita 6,713,100 8,635,988
* Envases CMF S.A. 0 1,774,412
Subtotal Finished Products 9,207,831 14,288,418
Raw Materials and Fuel
* Cristalerias de Chile S.A. 1,991,688 1,287,276
* S.A. Vina Santa Rita 14,101,812 13,959,992
* Envases CMF S.A. 0 706,762
Subtotal Raw Materials and Fuel 16,093,500 15,954,030
Supply Materials and Parts
* Cristalerias de Chile S.A. 1,216,761 1,085,981
* S.A. Vina Santa Rita 1,507,696 1,038,159
* Envases CMF S.A.. 0 553,237
Subtotal Supply Materials and Parts 2,724,457 2,677,377
Materials in Transit 347,438 984,679
Red Televisiva Megavision S.A. (CIECSA S.A.)
* Foreign, taped, for broadcast 2,486,654 2,240,804
* Domestic programming, to be broadcast 136,013 308,118
2,622,667 2,548,922
Constructora Apoger S.A.
* Offices and Parking 0 1,106,942
Total 30,995,893 37,560,368
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 of 16% of taxable income in 2002 (15% in 2001) subject to the First
Category and 35% for the Single Income Tax under Art. 21, for the 2002 and
2001 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 payable obligation.
The itemized list is the following:
2002 2001
Th Ch$ Th Ch$
Fiscal year income tax reserve (691,883) (1,054,803)
Single tax reserve (3,294) (4,524)
Previous year reserve (973,915) (618,186)
SUB TOTAL (1,669,088) (1,677,513)
Credits:
Deferred tax variation (0) 182,094
Monthly reserve payments 1,828,694 1,525,704
Training expenditures 57,440 56,574
Donations 44,185 42,734
Anticpated payment tax on earnings 30,919 427,585
CREDIT SUB TOTAL 1,961,238 2,234,691
Income Tax to be Recovered 292,150 557,178
Other Taxes to be recovered:
VAT Fiscal Credit 617,244 1,606,610
Income tax credit, previous year 1,163,207 303,443
TOTAL TAXES TO BE RECOVERED 2,072,601 2,467,231
C) TAXABLE PROFIT FUND
The parent company showed the following taxable profits to be distributed:
Generated as of 12.31.1983: 2002 Th Ch$ 2001 Th Ch$
Profits adjustment 1,839,146 1,894,588
Generated since 01.01.1984:
Without Credit 2,575,869 153,292
With 10% First Category Credit 79,070 510,143
With 15% First category Credit 97,171,878 92,601,264
With 15% Additional rate Credit 713 715
With 16% First Category Credit 3,552,709 0
SUB-TOTAL TAX PROFITS 103,380,239 93,265,414
Non-income revenues 6,572,216 6,570,755
TOTAL RETAINED EARNINGS 109,952,455 99,836,169
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
DEFERRED TAXES 03-31-2002 03-31-2001
Asset Liability Asset Liability
Deferred Deferred Deferred Deferred
Item Tax Tax Tax Tax
Short term Long Term Short Term Long Term Short Term Long Term Short Term Long Term
Temporary Differences
Reserve non-collectable
accounts 92,812 0 0 0 87,119 0 0 0
Prepaid Income 284,378 0 0 0 446,273 0 0 0
Vacation provision 101,936 0 2 0 110,604 0 0 0
Intangible Amortization 0 0 0 0 0 0 0 0
Leased assets 0 0 0 0 0 0 0 0
Manufacturing expenses 0 0 241,268 0 0 0 173,910 0
Depreciations fixed assets 0 0 0 7,368,002 484 0 0 5,929,078
Severance payments 1,724 32,759 0 0 1,360 25,842 0 0
Other events 113,732 94,947 0 0 0 0 0 0
Packaging reserve 212,756 0 0 0 178,658 0 0 0
Machinery repair provision 163,775 0 0 0 51,198 0 0 0
Furnace repair provision 178,405 544,631 0 0 0 869,183 0 0
Stock obsolescence
provision 41,577 0 0 0 45,748 0 0 0
Spare parts obsolescence
provision 93,445 0 0 0 20,562 0 0 0
Negative Goodwill
Amortization- bonds 41,448 0 0 0 16,683 9,372 0 0
Amortization commercial
brands 219,844 0 0 0 0 183,510 0 0
Deferred customs duties 24,736 0 0 0 0 0 0 0
Accumulated depreciation
automobiles 0 5,568 0 0 0 5,565 0 0
Non realized profits,
related companies 68,339 1,554 0 0 16,441 70,060 0 0
Other provisions 0 0 0 0 47,635 0 0 23,032
Prepaid expenses 0 0 34,641 0 0 0 16,390 0
Lower value sale of bonds 0 0 0 220,180 0 0 0 0
Direct labor 8,671 0 0 0 4,362 0 0 0
Fixed assets, molds 0 0 0 262,410 0 0 0 141,778
Banking reserve 11,443 0 0 0 0 23,095 0 0
Tax losses 0 5,030,059 0 0 0 4,664,450 0 0
Deferred futures profits 0 0 0 0 42,630 0 0 0
Supplementary
accounts-net of amort. 232,241 4,516,907 148,791 4,370,619 228,132 4,810,872 155,458 4,631,370
Valuation provision 0 0 0 0 0 0 0 0
Total 1,426,780 1,192,611 127,118 3,479,973 841,625 1,040,205 34,842 1,462,518
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
INCOME TAX
03-31-2002 03-31-2001
Th Ch$ Th Ch$
Current tax expense (tax provision) -693,781 -877,232
Adjustment tax expense (previous year) 0 0
Effects from assets or liabilities, deferred year's tax -309,197 5,882
Tax benefit from tax losses 0 291
Effect of amortiz. of supplementary accounts for deferred assets 19,965 -52,480
and liabilities
Effect on assets or liabilities from deferred tax from changes in 0 0
assessment provision
Other charges or credits to the account 0 0
Total -983,013 -923,539
09. Other current assets
As of March 31, 2002, investments in financial instruments with resale
agreements, valued as stated in note 2 q) for Th Ch$17,112,352, deferred
expenses of bond placement of Th$38,416 and cash reserves for Th Ch$27,685 are
included under this heading.
In March 2001 there was a balance of Th Ch$5,592,455 for investments in
Financial Institutions with resale agreement, a balance of Th Ch$2,273,062 for
futures Contracts and Th Ch$27,662 for cash reserves.
1
10. Information on operations involving purchase agreements, sales
agreements, sale with repurchase agreement, and purchase with resale
agreement of titles or movable securities
Information about these transactions is presented in attached charts.
CRISTALERIAS DE CHILE S.A.
NOTE 10 - INFORMATION ON PURCHASE COMMITMENT, SALE COMMITMENT, SALE WITH
REPURCHASE AGREEMENTS AND PURCHASE WITH RESALE AGREEMENTS OPERATIONS OF TITLES
AND REAL ESTATE SECURITIES
Dates
Market
Code Counterpart Original Price Rate Final Instrument Value
Start End Currency Set Value
Zero Central
CV 03.25.2002 04.01.2002 BCI Pesos 1,265,000 0.39 1,266,151 Bank 1,265,987
CV 03.27.2002 04.01.2002 Banchile Pesos 776,000 0.36 776,466 PRC and Other 776,372
Banco
CV 01.18.2002 04.19.2002 Chile Pesos 1,318,990 0.54 1,340,595 PRD 1,336,084
Banco
CV 03.22.2002 04.12.2002 Chile Pesos 1,000,000 0.40 1,002,800 PRD 1,001,200
Banco
CV 03.28.2002 04.05.2002 Dresner Pesos 900,000 0.38 900,912 PRD 900,342
Banco
CV 03.28.2002 04.05.2002 Dresner Pesos 103,780 0.39 103,885 PRD 103,820
Banco
CV 03.21.2002 04.26.2002 Chile Pesos 1,100,000 0.43 1,105,676 PRD 1,101,577
Banco
CV 02.22.2002 05.24.2002 Chile Pesos 1,038,657 0.50 1,054,410 PRD 1,045,062
Banco
CV 03.15.2002 05.17.2002 Chile Pesos 3,211,600 0.40 3,238,577 PRD 3,218,451
Banco
CV 02.27.2002 04.01.2002 Chile Dollars 809,123 2.00 790,397 PRD 790,353
Banco
CV 03.14.2002 04.05.2002 Chile Dollars 787,380 2.00 788,042 PRD 787,823
Banco
CV 03.15.2002 04.19.2002 Chile Dollars 1,621,051 2.10 1,625,502 PRD 1,623,702
Banco
CV 03.21.2002 04.25.2002 Chile Dollars 1,057,355 2.15 1,057,035 PRD 1,055,460
Banco
CV 03.21.2002 04.11.2002 Chile Dollars 676,493 2.10 675,704 PRD 675,271
Banco
CV 03.28.2002 04.12.2002 Chile Dollars 788,690 2.00 779,202 PRD 778,683
Scotiabank Pesos
CV 02.26.2002 04.12.2002 Sudamericano 250,000 0.50 251,688 PRBC 251,275
Scotiabank Pesos
CV 03.12.2002 04.26.2002 Sudamericano 250,000 0.40 251,575 PRBC 250,700
Scotiabank Pesos
CV 03.22.2002 04.19.2002 Sudamericano 150,000 0.40 150,532 PRBC 150,190
11. Fixed Assets
Fixed Assets:
The Fixed Assets are shown at purchase cost plus the legal and regulatory
revaluations accumulated as of March 31, 2002 and 2001.
The items that make up the Company's fixed assets as of March 31, 2002 and
2001 include mainly Land, Industrial Constructions, Infrastructure Works,
Machinery, and Equipment distributed between the Padre Hurtado, Alto Jahuel
and San Sebastian plants.
Technical Reappraisal and Adjustment of Accounting Values
The parent 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$3,228,069 in 2002 and Th
Ch$3,030,580 in 2001.
The detail is shown on an attached chart.
CRISTALERIAS DE CHILE S.A. AND SUBSIDIARIES
NOTE 11 - FIXED ASSETS
2002 2001
ThCh$ Th Ch$
Land
Land 12,881,010 12,033,604
Mining Properties 718,768
Subtotal Lands 12,881,010 12,752,372
Depreciation Mining Property
Accumulated
Fiscal year
Subtotal Depreciation 0 0
Subtotal Land 12,881,010 12,752,372
Buildings and Infrastructure Projects
Hi rises and industrial buildings 29,624,608 30,954,242
Installations 22,472,402 20,335,105
Residences 25,097 25,077
52,122,107 51,314,424
Depreciations
Accumulated 14,931,178 13,137,803
Fiscal year 586,195 525,382
Subtotal Depreciations 15,517,373 13,663,185
Subtotal Constructions and Projects 36,604,734 37,651,239
Machinery and Equipment
Machinery 85,992,051 83,515,570
Furnaces 36,187,904 29,012,154
Furniture and Furnishings 2,788,678 3,004,277
Rolling Stock 722,126 806,833
Tools 597,966 591,494
Subtotal 126,288,725 116,930,328
Depreciations
Accumulated 58,598,793 59,704,588
Fiscal year 2,591,941 2,422,999
Subtotal Depreciations 61,190,734 62,127,587
Subtotal Machinery and Equipment 65,097,991 54,802,741
Other Fixed Assets
Spare parts 4,543,559 4,732,651
Imports in transit 1,231,274 11,498,996
Work in progress 3,811,997 10,697,749
Lots in Pirque and Leyda 454,776 454,399
Deferred Customs Duties 503,560 0
Packages and Bundling 225,675 0
Other 1,848,141 3,525,244
Subtotal Other Assets 12,618,982 30,909,039
Total Fixed Assets 203,910,824 211,906,159
Total Accrued Depreciation 73,529,971 72,842,391
Total Depreciation for the Year 3,178,136 2,948,381
Total Net Fixed Assets 127,202,717 136,115,387
TECHNICAL REVALUATION AND ADJUSTMENT TO ACCOUNTING VALUES
2002 2001
Th Ch$ Th Ch$
Land
Land and Mining claims 299,376 298,976
Subtotal net land and mining properties 299,376 298,976
Buildings and Infrastructure Projects
Hi rises and industrial buildings 5,986,133 5,981,045
Installations 424,633 439,694
Subtotal Buildings 6,410,766 6,420,739
Depreciation:
Previous period accumulated -4,830,803 -4,642,677
Fiscal year -49,925 -49,884
Subtotal depreciation -4,880,728 -4,692,561
Subtotal Net Buildings 1,530,038 1,728,178
Machinery and Equipment
Furnaces 506,774 1,706,777
Machinery 970,022 1,727,964
Tools 52,341 52,298
Furniture and Furnishings 13,906 13,895
Subtotal Machinery and Equipment 1,543,043 3,500,934
Depreciation:
Previous Period Accumulated -1,543,043 -3,371,671
Fiscal Year 0 -32,315
Subtotal depreciation -1,543,043 -3,403,986
Subtotal Machinery and Equipment 0 96,948
Total Net Technical Revaluation 1,829,414 2,124,102
TOTAL REVALUED ASSETS 8,253,185 10,181,742
TOTAL ACCUMULATED DEPRECIATION -6,373,846 7,640,922
TOTAL DEPRECIATION OF THE PERIOD -49,925 -82,199
NET TOTAL 1,829,414 2,124,102
12. Sales transactions with leaseback
These type of transactions were not carried out as of March 31, 2002 and 2001.
13. Investments in related companies
The Corporation has valued its investments in related companies according to
rules indicated in note 2 o).
S.A. VINA SANTA RITA CONSOLIDATED
Sur Andino S.A.
Sur Andino S.A. was created on March 1, 2001 with capital of Th$ 10,000 and
1,000 shares. The corporation belongs 99.9% to Vina Carmen S.A. and 0.1% to
S.A. Vina Santa Rita.
CIECSA S.A. CONSOLIDATED
Simetral S.A.
This company was organized in October 2000, by issuing 1,000,000 shares
representing Th Ch$281,510. Ciecsa subscribed and paid 815,000 shares for Th
Ch$229,430 that represent 81.5% of the capital.
In the Special Shareholders' Meeting of July 23, 2001, the shareholders of
Simetral S.A., agreed to increase the company's capital of Th $284,044 divided
into 1,000,000 shares to Th $414,044 divided into 1,457,676 shares, by issuing
457,676 shares at a value of $284.0437 each.
Ciecsa S.A. subscribed and paid in 373,006 shares of this issue on August 28,
2001 for a value of Th $105,950 (historic) thereby maintaining its share of
81.5% of Simetral S.A.'s equity.
As of March 31, 2002, the investment in this subsidiary (Simetral S.A.) was
consolidated since the company started operating as of January 1, 2002.
EMPRESA EDITORIAL ZIG-ZAG S.A.
In September 2000 CIECSA acquired from Holanda S.A. 18,379,380 shares of Zig
Zag, S.A. for Th Ch$113,074, increasing its stake in this company to 49.89%.
This purchase was paid for in three installments of US$50,000 each, two of
which were paid for and the last one is to be paid for in September 2002.
On February 26, 2001, Empresa Editorial Zig Zag S.A. made a capital increase
in which Ciecsa S.A., bought 22,600,000 shares in Th$56,550. On July 2001,
Ciecsa S.A. subscribed and paid for 60,000 shares of Editorial Zig Zag S.A.,
whose subscription was pending, for an amount of Th Ch$ 150 (historical),
maintaining its current percentage of 49.89%.
EDICIONES FINANCIERAS S.A.
On September 27, 2001 523 shares of Ediciones Financieras S.A. were sold to
Recoletos Chile Limitada, generating a profit of Ch$161 million.
On the other hand, Ciecsa S.A. contributed 523 shares of Ediciones Financieras
S.A. to Ediciones Chiloe S.A., which generated a unrealized profit of Th
Ch$160,697 to be amortized in 10 years.
With the sale of 523 shares of Ediciones Financieras S.A. to Recoletos Chile
Ltda. and the contribution of 523 shares to Ediciones Chiloe S.A., Ciecsa S.A.
has been left without any direct interest in Ediciones Financieras S.A.
EDICIONES CHILOE S.A.
Ciecsa sold 443,731 shares of Ediciones Chiloe S.A. to Recoletos Chile Ltda.
on September 27, 2001, whereby its stake in the company rose to 50%. This sale
generated profits of $567.5 million, plus the acknowledgement of a non
realized profit of $47.5 million as a result of having lowered the share in
that company from 75% to 50%.
Likewise, in the Special Shareholders' Meeting held on September 27, 2001, the
shareholders of Ediciones Chiloe S.A., agreed to increase the capital by Th
$684,308 by issuing 1,500,395 shares, which were subscribed by Ciecsa S.A. and
Recoletos Chile Ltda.
Of this issue 1,279,013 shares (equivalent to Th Ch$583,339) were paid by
contributing 1,046 shares of Ediciones Financieras S.A. valued at Th
Ch$421,551 and the capitalization of loans for Th Ch$ 161,788 that the
shareholders had granted the company.
Payment for 221,382 shares is pending whose value totals Th Ch$100,969 that
will be paid within three years.
On February 4, 2002, the partners of Ediciones Chiloe agreed to pay for 86,352
shares already subscribed. The subsidiary Ciecsa paid Th Ch$ 19,859 equivalent
to 43,176 shares, raising its stake to 50%.
ENVASES CMF S.A.
A Special Shareholders' Meeting of Crowpla Reicolite S.A. was held on June 29,
2001, where it was agreed to increase the company's capital to Th
Ch$26,220,315 divided into 56,000 shares, through the capitalization of Th
Ch$1,755,219 from the Revaluation Fund and Retained Earnings and the emission
of 29,000 cash shares equivalent to Th Ch$15,648,300.
Of this issue, Andina Inversiones Societarias S.A. subscribed and paid for
28,000 shares worth Th Ch$15,149,749.
Cristalerias de Chile S.A., subscribed and paid for 1000 shares worth Th
Ch$498,552.
With these operations, Cristalerias de Chile S.A.'s share rose to 28,000
shares, which represented 50% of the company's equity.
This association, which implied a reduction of the percentage share of
Cristalchile in the equity of Crowpla-Reicolite S.A., as of December 31, 2001,
resulted in a positive variation of the VPP of Th Ch$1,989,949, which was
included in Other Non-Operating Income.
During November 2001, the company changed its firm name to Envases CMF S.A.
INVESTMENTS ABROAD
RAYEN CURA S.A.I.C.
As of December 28, 2001, the parent company sold 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, Argentine, for Th Ch$18,340,577 equivalent to
US$26,582,473 (including the irrevocable contribution made in July 2001 of
US$4,800,000). This transaction had no effects on results.
According to the provisions of Circular 81 of the S.V.S. of 01/22/2002, the
subsidiary adjusted Rayen Cura S.A.I.C.'s financial statements, considering a
rate of exchange of $1.7 Argentine pesos per US dollar, although the
devaluation of the peso with respect to the dollar was not registered in the
accounts in Argentina.
As of March 31, 2002 a rate of exchange of $2.9 Argentine pesos per dollar has
been acknowledged in the financial statements of Rayen Cura S.A.I.C.. On its
part the subsidiary CristalChile Inversiones S.A., has adjusted the financial
statements of Rayen Cura S.A.I.C. to recognize a devaluation of between $1.7
to $2.9 Argentine pesos per dollar.
The accountable charge against results generated by the devaluation of the
Argentine peso totaled Th Ch$1,709,342 as of March 31, 2002.
As stipulated in Technical Bulletin No. 64 of the Accountants Association of
Chile, following is the information related to investments abroad:
2002
Th$
CristalChile Inversiones's share of
Rayen Cura S.A.I.C. 16,679,912
Negative goodwill(net of amortization) 5,203,198
-------------
TOTAL 16,883,110
=============
Loss due to devaluation (1,709,342)
Accrued losses (1,477,298)
The investment in Rayen Cura S.A.I.C. is controlled in dollars of the United
States of America.
VINA DONA PAULA S.A.
This company was organized on August 25, 1997 in Argentina, with the
subsidiary S.A. Vina Santa Rita contributing 99% of the capital.
The company's balance has been consolidated as of March 31, 2002. As of March
31, 2001 it was not included in the consolidation because Dona Paula S.A. was
still in a development stage.
This investment is recorded in pesos because it is considered an extension of
the investing company.
CRISTALERIAS DE CHILE S.A.
NOTE 13 - INVESTMENTS IN RELATED COMPANIES
BREAKDOWN OF INVESTMENTS
Investment Shareholder Company
R.U.T. Company Country Control Number (Percentage) Equity
of of
Origin Currency Shares 03-31- 03-31- 03-31- 03-31-
2002 2002 2002 2001
78.619.410-5 Cordillera Chile Peso 0 50.0000 50.0000 151,141,561 164,891,850
Comunicaciones
Holding
78.619.370-2 Cordillera Chile Peso 0 0.2500 0.2500 151,901,166 165,720,452
Comunicaciones
Ltda.
89.150.900-6 Vina Los Chile Peso 60,000,000 43.0000 43.0000 10,377,086 9,431,120
Vascos S.A.
90.684.000-6 Editorial Chile Peso 114,516,900 49.8900 49.8709 575,894 424,331
Zig-Zag S.A.
96.793.770-3 Ediciones Chile Peso 750,197 50.0000 0.0000 1,535,143 0
Chiloe S.A.
96.826.870-8 Inmobiliaria Chile Peso 3,817 38.1700 38.1700 1,296 413,386
Don Alberto
S.A.
96.628.620-2 Inmobiliaira Chile Peso 0 0.0000 7.0000 0 19,561
Y Const.
Richelieu
S.A.
86.881.400-4 Envases CMF Chile Peso 28,000 50.0000 0.0000 28,793,387 0
S.A.
0-E Vina Dona Argentina Peso 20,011,199 0.0000 100.0000 0 0
Paula
96.939.140-6 Simetral S.A. Chile Peso 815,000 81.5000 81.5000 0 96,723
0-E Rayen Cura Argentina Dollar 1,376,000 40.0000 40.0000 29,199,780 27,632,061
S.A.
TOTAL
Net Result Income Book value
of not of
R.U.T. Company Income Accrual VPP Realized Investment
2002 2001 2002 2001 2002 2001 2002 2001 2002 2001
78.619.410-5 Cordillera -4,756,593 -4,806,551 -2,378,295 -2,403,542 75,570,781 82,445,925 0 0 75,570,781 82,445,925
Comunicaciones
Holding
78.619.370-2 Cordillera -4,780,494 -4,831,241 -11,951 -12,079 379,752 414,302 0 0 379,752 414,302
Comunicaciones
Ltda
89.150.900-6 Vina Los 75,651 234,129 32,529 100,676 4,462,147 4,055,382 0 152,230 4,462,147 3,903,152
Vascos S.A.
90.684.000-6 Editorial -86,011 208,567 -42,882 -53,620 287,342 211,609 0 0 287,342 211,609
Zig-Zag S.A.
96.793.770-3 Ediciones -110,924 0 -55,462 0 767,572 0 36,277 0 531,295 0
Chiloe S.A.
96.826.870-8 Inmobiliaria -1,526 -7,512 -583 -2,868 495 157,790 0 0 495 157,790
Don Alberto S.A
96.628.620-2 Inmobiliaira 0 59 0 5 0 1,369 0 0 0 1,369
Y Const.
Richelieu S.A.
86.881.400-4 Envases S.A. 277,969 0 138,984 0 14,396,694 0 0 0 14,396,694 0
0-E Vina Dona
Paula 0 0 0 0 0 0 0 0 0 0
96.939.140-6 Simetral S.A. 0 0 0 0 0 78,829 0 0 0 78,829
0-E Rayen Cura S.A.-3,693,245 208,567 -1,477,298 83,427 11,679,912 11,052,824 0 0 11,679,912 11,052,824
TOTAL 107,544,695 98,418,030 236,277 152,230 107,308,418 98,265,800
14. Investments in other companies
Investments in other companies that totaled Th Ch$1,431,275 in March 2002 (Th
Ch$1,558,977 in 2001) are shown on attached charts.
CRISTALERIAS DE CHILE S.A.
NOTE 14 - INVESTMENTS IN OTHER CORPORATIONS
Book Value
R.U.T. Company Name Number of Shareholding
Shares (Percentage) 03-31-2002 03-31-2001
96.895.100-9 Internet Holding S.A. 65,765 5.4800 850,496 978,679
0-E Bazuca.com Inc. 266,500 6.4600 577,818 577,340
96.787.750-6 Metropolis Intercom S.A. 1 0.0000 21 21
96.806.690-0 Proser S.A. 50 0.5000 2,940 2,937
15. 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, 2002 totaled Th Ch 8,729,892 (Th Ch$10,208,006 in
2001).
POSITIVE GOODWILL
As of March 31, 2002 and 2001 the parent company and the subsidiaries do not
show any balance for this item.
More information is available on attached charts.
CRISTALERIAS DE CHILE S.A.
NOTE 15 - GOODWILL ON INVESTMENTS
NEGATIVE GOODWILL
03-31-2002 03-31-2001
R.U.T. Company Name
Amount Amortiz. Goodwill Amount Amortiz. Goodwill
this period Balance this period Balance
96.608.270-4 Ciecsa S.A. 29,018 1,479,924 28,994 1,594,673
86.881.400-4 Envases CMF S.A. 0 0 6,624 125,856
99.999.999-9 Rayen Cura S.A. 74,331 5,203,198 69,132 5,114,344
86.547.900-K S.A. Vina Santa Rita 12,010 619,302 11,614 667,174
89.150.900-6 Vina Los Vascos S.A. 21,359 1,247,430 29,299 1,302,621
90.684.000-6 Editorial Zig-Zag S.A. 1,520 108,683 1,519 114,670
96.539.380-3 Ediciones Financieras S.A. 0 0 19,222 1,210,059
79.952.350-7 Red Televisiva Megavision S.A. 1,830 71,355 1,828 78,609
TOTAL 140,068 8,729,892 168,232 10,208,006
16. Intangibles
INTANGIBLES
The following values are included in this item:
Th Ch$ Th Ch$
2002 2001
Trademarks 1,458,355 1,312,920
Concession of Channel 9
frequency and regional network 9,746,744 9,738,666
---------- ----------
TOTAL INTANGIBLES 11,205,099 11,051,586
========== ==========
ACCUMULATED AMORTIZATIONS
From Trademarks 121,561 89,616
From Channel 9 Frequency 621,066 505,793
---------- ---------
TOTAL AMORTIZATIONS 832,326 707,127
========== =========
17. Others (Assets)
The following items are included under this item:
2002 2001
Th Ch$ Th Ch$
Price differential bond acquisition 257,512
Celulosa Arauco bonds (*) 8,802,178
Cash Reserve 43,834 71,464
Local programs to be exhibited over a year from the present 892,904 1,165,808
Foreign programs to be exhibited over a year from the present 6,070 31,039
Negative goodwill Bond Sale (Net) 1,034,831 1,178,926
Future Contracts in foreign currency 0 133,094
Expenses of bond sales 221,929 259,139
Other 213,304 101,056
Prepaid Custom Duty Interests 200,625 0
------- -
Total 11,673,178 2,940,526
========== =========
(*) Celulosa Arauco bond sales equivalent to US$13,420,000 at a rate of 6.95%
annual due as September 15, 2005, price differential paid in the acquisition
of Celulosa Arauco bonds will be amortized in the same term of the due date.
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, therefore
no negative adjustment has been carried out at the market value which at March
31, 2002 totals Th Ch$130,625.
18. Short-term liabilities with banks and financial institutions
A detailed list of operations is shown on the attached chart.
CRISTALERIAS DE CHILE S.A.
NOTE 18 - OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS, SHORT TERM
Type of Currency and
Readjustment Index
Other
Foreign
R.U.T. Bank or Financial Dollars Euros Yen Currencies U.F.
Institution 03-31- 03-31- 03-31- 03-31- 03-31- 03-31- 03-31- 03-31- 03-31- 03-31-
2002 2001 2002 2001 2002 2001 2002 2001 2002 2001
Short term (code: 5.21.10.10)
97.036.000-K Banco Santiago 0 0 0 0 0 0 0 0 0 2,125,463
0-E Banco Regional de 0 0 0 0 0 0 4,288 0 0 0
Cuyo
97.018.000-1 Banco Sudamericano 0 0 0 0 0 0 0 0 0 0
97.006.000-6 Banco Credito e 0 2,530,928 0 145,225 0 0 0 53,510 0 0
Inversiones
97.004.000-5 Banco Chile 0 0 0 0 0 0 0 0 0 0
Other 0 0 0 0 0 0 0 0 0 0
TOTAL 0 2,530,928 0 145,225 0 0 4,288 53,510 0 2,125,463
Amount capital due 0 2,390,442 0 145,225 0 0 4,288 53,510 0 2,026,646
Annual average 0.00 3.69 0.00 0.00 0.00 0.00 0.00 0.00 7.40 7.50
interest rate
Long Term - Short Term (code: 5.21.10.20)
97.036.000-K Banco Santiago 0 35,656 0 0 0 0 0 0 2,235,843 2,489,861
0-E The Chase 18,838,385 164,320 0 0 0 0 0 0 0 0
Manhattan Bank
97.008.000-7 Citibank NA 1,868,285 2,953,360 0 0 0 0 0 0 0 0
0-E Banco Dresner 961,417 900,159 0 0 0 0 0 0 0 0
0-E Banco Argentaria 240,029 225,149 0 0 0 0 0 0 0 0
97.018.000-1 Banco Sudamericano 0 0 0 0 0 0 0 0 431,530 801,087
97.006.000-6 Banco Credito e 0 0 0 0 0 0 0 0 164,112 779,847
Inversiones
97.024.000-4 Banco de A. 0 0 0 0 0 0 0 0 210,198 1,816,870
Edwards
Other 0 0 0 0 0 0 0 0 0 0
TOTAL 21,908,116 4,278,644 0 0 0 0 0 0 3,041,683 5,887,665
Amount capital 21,704,570 4,176,064 0 0 0 0 0 0 2,921,923 5,766,099
due
Average annual 3.60 8.23 0.00 0.00 0.00 0.00 0.00 0.00 7.41 7.28
interest rate
Percentage oblig. foreign 76.6400
curr. (%)
Percentage oblig. foreign 23.3600
curr. (%)
Non Total
adjustable $
Institution 03/31 03-31- 03-31- 03-31-
2002 2001 2002 2001
Short term (code: 5.21.10.10)
97.036.000-Banco Santiago 1,009,717 0 1,009,717 2,125,463
0-E Banco Regional de 0 0 4,288 0
Cuyo
97.018.000-Banco Sudamericano 0 93,624 0 93,624
97.006.000-Banco Credito e 0 0 0 2,729,663
Inversiones
97.004.000-Banco Chile 2 0 2 0
Other 0 0 0 0
TOTAL 1,009,719 93,624 1,014,007 4,948,750
Amount capital due 1,000,000 93,624 1,004,288 4,709,447
Annual average 6.96 0.00
interest rate
Long Term - Short Term
(code: 5.2)
0
97.036.000-Banco Santiago 0 0 2,235,843 2,525,517
0-E The Chase 0 18,838,385 164,320
Manhattan Bank 0
97.008.000-Citibank NA 0 0 1,868,285 2,953,360
0-E Banco Dresner 0 0 961,417 900,159
0-E Banco Argentaria 0 0 240,029 225,149
97.018.000-Banco Sudamericano 0 0 431,530 801,087
97.006.000-Banco Credito e 0 164,112 779,847
Inversiones 0
97.024.000-Banco de A. 0 210,198 1,816,870
Edwards
0
Other 0 0 0 0
TOTAL 0 24,949,799 10,166,309
Amount capital 0 0 24,626,493 9,942,163
due
Average annual 0.00 0.00 0.00 0.00
interest rate
19. Other Current Liabilities
As of March 31, 2002 there are balances of Th Ch$ 4,005,553 corresponding to a
differential in favor of financial institutions for future contracts in
foreign currency subscribed by the parent company and the subsidiaries S.A.
Vina Santa Rita and Ciecsa S.A.
As of March 31, 2001 there is a deferred income item relating to a foreign
currency futures contract underwritten by S.A. Vina Canta Rita totaling Th
Ch$306,346.
20. Long-term liabilities with banks and financial institutions
The obligations with banks and financial institutions are presented on the
charts attached.
CRISTALERIAS DE CHILE S.A.
NOTE 20: LONG-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS
More than
Bank or Currency More than More than More than More than 10 Years
Financial adjustment 1 up to 2 2 up to 3 3 up to 5 5 up to 10 Amount Period
R.U.T. Institution index --------- --------- --------- ---------- -------- ------
------ ----------- -----
Thou Ch$ Thou Ch$ Thou Ch$ Thou Ch$ Thou Ch$
-------- -------- -------- -------- --------
99.999.999-9 J.P. Morgan Chase Dollars 18,740,000 18,740,000 9,370,000 - - 2,005
Bank
90.008.000-K Citibank N.A. Dollars 1,550,309 1,550,309 - - - -
Dollars 244,326 238,509 - - - -
97.018.000-1 Banco Sudamericano UF 388,711 388,711 1,166,132 - - -
0-E Banco Dresner Dollars - - - - - -
97.006.000-6 Banco Credito e UF 161,976 161,976 161,976 - - -
Inversiones
97.024.000-4 Banco A. Edwards UF 275,955 1,168,751 - - - -
0-E Banco Argentaria Dollars 245,152 238,748 - - - -
0-E Banco Regional de Dollars - - - - - -
Cuyo
Oth 57,044 - - - - -
currencies
Total 21,663,473 22,487,004 10,698,108 - - -
Percentage of obligations in foreign 989400.00%
currency
Percentage of obligations in local 70600.00%
currency
Closing Date Closing Date
------------------------ --------------
Current Period Previsous Period
Total Long- Annual Total Long-
Bank or Currency Term at closing average Term at closing
Financial adjustment of Financial interest of Financial
R.U.T. Institution index Statements rate Statements
- ------- -------------- --------- ---------------- ------- ---------------
99.999.999-9 J.P. Morgan Chase Dollars 46,850,000 3375 60,984,425
Bank
90.008.000-K Citibank N.A. Dollars 3,100,618 4523 4,452,555
Dollars 482,835 4.39 674,036
97.018.000-1 Banco Sudamericano UF 1,934,554 Tab 180+2.0 795,738
0-E Banco Dresner Dollars - - 871,208
97.006.000-6 Banco Credito e UF 485,928 Tab 90+2.0 -
Inversiones
97.024.000-4 Banco A. Edwards UF 1,444,706 Tab 180+2.0 -
0-E Banco Argentaria Dollars 483,900 3,500 675,450
0-E Banco Regional de Dollars - - 79,284
Cuyo
Oth 57,044 2,630 -
currencies
Total 54,848,585 68,532,696
21. Short-term and long-term obligations with the public
(promissory notes and bonds)
As of March 31, 2002 and 2001, there are obligations with the public
corresponding to bonds of series A, C, and D issued by the subsidiary S.A.
Vina Santa Rita in UFs. This liability is shown in detail in the appendix.
Cristalerias de
Chile S.A.
NOTE 21: SHORT-TERM AND LONG-TERM OBLIGATIONS WITH PUBLIC
(PROMISSORY NOTES AND BONDS) BONDS
REGISTRATION OR SERIES CURRENT INDEXING INTEREST FINAL INSTALLMENTS PAR VALUE ISSUE
IDENTIFICATION No. DEPOSIT UNIT RATE MATURITY INTEREST AMORTIZATION 03-31-2002 03-31-2001 IN CHILE
OF INSTRUMENT FACE OF BOND PAYMENT PAYMENT OR
VALUE ABROAD
LONG-TERM BONDS-CURRENT PORTION
144-7.12.91 A 25,000 UF 6.59 01/06/2003 SEMI-ANNUAL SEMI-ANNUAL 215,708 427,408 LOCAL
241-15.12.00 C1 Interests 0 UF 6.29 12-15-2005 SEMI-ANNUAL SEMI-ANNUAL 57,750 0 LOCAL
241-15.12.00 D1 Interests 0 UF 6.29 12-15-2021 SEMI-ANNUAL SEMI-ANNUAL 28,875 0 LOCAL
241-15.12.00 D2 Interests 0 UF 6.29 12-15-2021 SEMI-ANNUAL SEMI-ANNUAL 259,877 0 LOCAL
TOTAL CURRENT PORTION 562,210 427,408
LONG-TERM BONDS
144-7.12.91 A 25,000 UF 6.59 01/06/2003 SEMI-ANNUAL SEMI-ANNUAL 404,942 607,815 LOCAL
241-15.12.00 C1 200,000 UF 6.29 12-15-2005 SEMI-ANNUAL SEMI-ANNUAL 3,239,532 3,299,786 LOCAL
241-15.12.00 D1 100,000 UF 6.29 12-15-2021 SEMI-ANNUAL SEMI-ANNUAL 1,649,893 1,649,893 LOCAL
241-15.12.00 D2 900,000 UF 6.29 12-15-2021 SEMI-ANNUAL SEMI-ANNUAL 14,577,894 14,849,032 LOCAL
LONG-TERM TOTAL 19,842,134 20,406,526
22. Provisions and Write-Offs
Provisions
The Company has short-term provisions of Th Ch$10,143,938 as of March 31,
2002, and Th Ch$8,185,445 in 2001.
Long-term provisions of Th Ch$6,902,679 and Th Ch$8,936,808 are recorded for
the years 2002 and 2001 respectively.
In the attached chart a detail for provisioned amounts is shown.
Bad Debt Provisions:
The parent company and the subsidiaries S.A. Vina Santa Rita and Ciecsa S.A.
have established a bad debt provision of Th Ch$570,755 and Th Ch$496,413, as
of March 31, 2002 and 2001, respectively.
The companies charged Th Ch$7,670 against provisions in 2002.
This provision is deducted from the balance of Debtors from Sales and
Documents Receivable.
Vacation Provision:
The parent company and its subsidiaries have established provisions for the
total cost of vacations pending as of March 31, 2002 and 2001, as established
in Technical Bulletin No. 47 of the Accountants Association of Chile.
The net balance for this item is Th Ch$628,989 as of March 31, 2002 (Th
Ch$736,867 in 2001).
Provision for Furnace Reconstruction:
This reserve is established throughout the useful life of the refractory
bricks 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 reserve in the amount of Th Ch$4,413,876 and Th
Ch$$5,665,414 as of March 31, 2002 and 2001, respectively.
CRISTALERIAS DE CHILE S.A.
NOTE 22: PROVISIONS AND WRITE-OFFS
CONSOLIDATED
03-31-2002 03-31-2001
Thou Ch$ Thou Ch$
Short Term
Share of Board of Directors 27,095 208,063
Share of Board of Directors (Previous Fiscal Year) 856,240 698,732
Advertising agency commission 332,775 178,492
Purchases and sales comission 2,117,458 1,584,686
Local and foreign suppliers 481,672 1,456,661
Advertising and marketing 148,042
Insurance Policies 161,932
Copyright 268,338 228,910
Furnace reconstruction 1,115,030 587,991
Machinery repair 1,007,849 341,317
Severance payments 138,656 174,521
Packing return to clients 1,142,646 1,135,682
Legal holidays 628,989 736,867
Grape harvest expenses 456,805
Spareparts reserve 446,387
Negative net worth in subsidiaries 88,866
Other reserves 814,024 764,657
TOTAL 10,143,938 8,185,445
Long Term
Severance payment 3,603,833 3,859,384
Furnace reconstruction 3,298,846 5,077,424
TOTAL 6,902,679 8,936,808
23. Severance Payment
The provision for severance payments to personnel is included at its current
value, as expressed in note 2 t).
In 2002 it amounts to Th Ch$3,742,489 (Th Ch$3,667,342 in 2001).
As of March 31, 2002, the parent company has paid severance payments of Th
Ch$20,941 (Th Ch$35,904 in 2001) chargeable against the provision.
24. Other long-term liabilities
As of March 31, 2002 and 2001 there are no balances for this item.
25. Minority interest
The subsidiaries that generate minority interests as of March 31, 2002 and
2001 are shown on the attached chart.
CRISTALERIAS DE CHILE S.A.
NOTE 25: MINORITY INTEREST
MINORITY INTEREST AS OF SEPTEMBER 30, 2001
SUBSIDIARY COMPANY NET WORTH RESULTS SHAREHOLDING
Thou Ch$ Thou Ch$ Thou Ch$ Thou Ch$ % %
2002 2001 2002 2001 2002 2001
S.A.Vina Santa Rita 32,609,641 30,101,453 (466,434) (442,888) 45.90 45.90
CIECSA Consolidated 2,001,008 2,093,038 50,634 295,857 1.79 1.87
Constructora Apoger S.A. 9,543 233,547 101 1,147 20.00 20.00
Cristalchile Comunicaciones S.A. 1,503 1,646 47 48 0.01 0.01
Envases CMF S.A. (Ex Crowpla R.) 0 2,648 0 (1,047) 0.00 0.01
TOTAL 34,621,695 32,432,332 -415,652 -146,883
26. Changes in Equity
a. Activity in 2002 and 2001
The activity of the capital and reserve accounts in the fiscal years ended in
March 31, 2002 and 2001, are shown in the attached charts.
b. Other Reserves
The detail of this item is as follows:
2002 2001
ThCh$ ThCh$
Future capital increases 4,095,904 3,770,068
Reserve for adjustment of value of fixed assets 1,829,414 2,150,340
Adjustment for conversion difference in investment
in Rayen Cura S.A.I.C. 2,293,616 1,178,189
Difference VPP Sodex (208,960) (208,787)
---------- ---------
TOTAL OTHER RESERVES 8,009,974 6,889,810
========== =========
c. Accumulated Deficit for the Subsidiary Development Period
The negative variation in equity experimented by the company results from the
application of the VPP method carried out by CIECSA S.A. in its subsidiary
Simetral S.A., which was in a stage of development until December 31, 2001 and
has not started to operate, and its expenditures correspond to pre-operating
activities. In accordance with provisions in Circular Letter 981 of the
Insurance and Securities Commission, this deficit is treated as an accumulated
loss.
CRISTALERIAS DE CHILE S.A.
NOTE 26: CHANGES IN NETWORTH - CAPITAL (AMOUNT - TH CH$)
SERIES SUBSCRIBED CAPITAL PAID-IN CAPITAL
------ ------------------ ---------------
SINGLE 62,863,356 62,863,356
CRISTALERIAS DE CHILE S.A.
NOTE 26: CHANGES IN NETWORTH - NUMBER OF SHARES
No.
No. No. SHARES
SHARES SHARES WITH VOTING
SERIES SUBSCRIBED PAID RIGHT
------ ---------- ---- -----
SINGLE 64,000,000 64,000,000 64,000,000
CRISTALERIAS DE CHILE S.A.
NOTE 26: CHANGES IN NETWORTH - DEFICIT ACCUMULATED IN DEVELOPMENT PERIOD OF SUBSIDIARY
AMOUNT
RUT COMPANY FISCAL YEAR ACCUMULATED COMMENTS
--- ------- ----------- ----------- --------
96.939.140-6 SIMETRAL S.A. 122,636 122,636 IN DEVELOPMENT PERIOD
CRISTALERIAS DE CHILE S.A.
NOTE 26: CHANGES IN NET WORTH
ITEM Reserve Premium Reserve Provis- Devel. Fiscal
Paid-in capital in sale Other Future Accumulated ional Period Year
Capital revaluation of shares Reserves Dividends Results Dividends Deficit Result
------- ----------- --------- -------- --------- ------- --------- ------- ------
Balances as of 3/31/2002-
Initial balance 62,863,356 0 26,794,558 7,942,919 102,798,113 0 0 (123,129) 0
Distribution result previous fiscal 0 0 0 0 0 17,770,611 0 0 0
year
Final dividend previous fiscal year 0 0 0 0 0 (4,657,728) 0 0 0
Capital increases with cash stock 0 0 0 0 0 0 0 0 0
issue
Reserves and/or Profits 0 0 0 0 0 0 0 0 0
Capitalization
Development period Accumulated 0 0 0 0 0 0 0 0 0
deficit
Accumulated conversion difference 0 0 0 98,828 0 0 0 0 0
adjustment
Eventual Dividend 0 0 0 0 0 0 0 0 0
Owner's equity Revaluation 0 (251,453) (107,180) (31,773) (411,190) (52,451) 0 493 0
Fiscal Year Result 0 0 0 0 0 0 0 0 175,829
Provisional Dividends 0 0 0 0 0 0 0 0 0
Final balances as of 3/31/2002 62,863,356 (251,453) 26,687,378 8,009,974 102,386,923 13,060,432 0 (122,636) 175,829
Initial balance as of 3/31/2001 60,973,187 0 25,988,901 6,166,094 91,287,846 0 0 (107,536) 0
Distribution result previous fiscal 0 0 0 0 0 17,042,239 0 0 0
year
Final dividend previous fiscal year 0 0 0 0 0 (4,156,672) 0 0 0
Capital increases with cash stock 0 0 0 0 0 0 0 0 0
issue
Reserves and/or profit Capitalization 0 0 0 0 0 0 0 0 0
Development period accumulated 0 0 0 0 0 0 0 (55,488) 0
deficit
Accumulated conversion difference 0 0 0 549,506 0 0 0 0 0
adjustment
Eventual Dividend 0 0 0 0 0 0 0 0 0
Owner's equity revaluation 0 60,973 25,988 6,166 91,288 12,885 0 (108) 0
Fiscal Year Result 0 0 0 0 0 0 0 0 1,695,160
Provisional Dividends 0 0 0 0 0 0 0 0 0
Final balances 60,973,187 60,973 26,014,889 6,721,766 91,379,134 12,898,452 0 (163,132) 1,695,160
Updated Final Balances as of 62,497,517 62,496 26,665,262 6,889,810 93,663,612 13,220,914 0 (167,210) 1,737,539
3/30/2001
27. Other Non-Operating Income and Disbursements
As of March 31, 2002 and 2001 the non-operating income totals Th Ch$231,488
and Ch$326,912, respectively.
Non-operating Expenditures were Th Ch$404,939 in 2002 and Th Ch$389,083 in
2001.
More detail is shown on the attached chart.
CRISTALERIAS DE CHILE S.A.
NOTE 27: OTHER NON-OPERATING INCOME AND EXPENSES
2,002 2,001
Th Ch$ Th Ch$
INCOME
Future contracts 0 99,873
Other income 51,055 0
Offices and establishments rental 53,793 69,026
Tax exemptions 65,823 40,796
Sale of fixed assets 0 4,870
Indemnity for claims 241 1,911
Amortization of non-realized profits 7,879 7,872
Sale of materials 6,789 6,515
Other income 45,908 96,051
TOTAL NON-OPERATING INCOME 231,488 326,912
EXPENSES
Professional advice 190,101 122,939
Drama series charge off (Stgo. City) 0 76,875
Severance payments 5,614 0
Share of Board of Directors 20,057 15,252
Effect of greater share of Ediciones Financieras 0 56,826
Frequency amortization 32,687 29,692
Contracts and contingencies 59,991 0
Loss in sales of fixed assets 14,255 0
Trademarks amortization 11,848 9,407
Comunications 0 3,738
Amortization smaller value of bonds 0 35,976
Insurance 3,874 26,046
Other expenses 69,512 12,331
TOTAL NON-OPERATING EXPENSES 407,939 389,083
28. 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 2002
fiscal year in the amount of Th Ch$155,632 and a net charge against results of
Th Ch$127,838 in 2001.
Additional information organized by item on the Balance Sheet is shown on the
attached chart.
Cristalerias de Chile S.A.
NOTE 28: ADJUSTMENT FOR PRICE LEVEL
RESTATEMENTS
ADJUSTABILITY
ASSETS (DEBITS)/CREDITS INDEX 03-31-2002 03-31-2001
INVENTORY CPI (116,191) 32,835
FIXED ASSETS CPI (508,476) 118,030
INVESTMENTS IN RELATED COMPANIES CPI (395,934) 25,527
MARKETABLE SECURITIES CPI (13,078)
-
TIME DEPOSITS CPI
- -
SHORT-TERM DEBTORS CPI (7,785)
-
ACCOUNTS RECEIVABLE RELATED COMPANIES CPI (84,426)
-
LONG-TERM DEBTORS CPI
(243) -
OTHER NON-MONETARY ASSETS CPI (382,247) 131,622
EXPENSE AND COST ACCOUNTS CPI (8,062) (25,144)
TOTAL (DEBITS)/CREDITS (1,516,442) 282,870
LIABILITIES (DEBITS)/ CREDITS
NET WORTH CPI
- -
OBLIGATIONS WITH THE PUBLIC CPI 80,439
-
BANK LOANS CPI 93,925 (18,148)
ACCOUNTS RECEIVABLE RELATED COMPANIES CPI
149 -
SHORT-TERM RESERVES CPI (4,500)
-
LONG-TERM CREDITORS CPI
231 (891)
LONG-TERM RESERVES CPI (15,684)
-
LONG-TERM BANK LOANS CPI 202,779 (6,015)
OTHER LIABILITIES CPI 64,225 (214,396)
SHAREHOLDERS' EQUITY CPI 853,555 (202,124)
NON-MONETARY LIABILITIES CPI
- -
INCOME ACCOUNTS CPI 78,099 32,858
TOTAL (DEBITS)/ CREDITS 1,353,218 (408,716)
(LOSS) PROFIT FROM ADJUSTMENT FOR CURRENCY DEVALUATION (155,632) (127,838)
29. Rate of Exchange Differential
There is a net credit to results in the 2002 fiscal year of Th Ch$9,357 and of
Th Ch$266,499 in 2001 because of a rate of exchange differencial.
More information is shown on the attached chart.
Cristalerias de Chile S.A.
NOTE 29: EXCHANGE DIFFERENCES
ITEM CURRENCY AMOUNT
03-31-2002 03-31-2001
CURRENT ASSETS DOLLARS 200,831 -
CURRENT ASSETS OTHER CUR. 7,184 (26,000)
CLIENTS DOLLARS 79,333 -
CLIENTS OTHER CUR. (10,026) -
TIME DEPOSITS DOLLARS (10,093) 1,090,041
INVENTORY DOLLARS (244) -
INVENTORY OTHER CUR. (6) -
OTHER ASSETS DOLLARS 13,286 515,213
OTHER ASSETS OTHER CUR. 2,667 -
FIXED ASSETS OTHER CUR. - 1,725
TOTAL (DEBITS) CREDITS 282,932 1,580,979
SHORT TERM BANK CREDITS DOLLARS (169,052) (1,077,671)
MISCELLANEOUS CREDITORS LONG TERM DOLLARS (4,128) -
DOCUMENTS PAYABLE DOLLARS (56,245) 26,282
DOCUMENTS PAYABLE OTHER CUR. 13,207 -
MISCELLANEOUS CREDITORS SHORT TERM DOLLARS
(395) -
SHORT TERM PROVISIONS DOLLARS (1,495) -
LONG TERM BANK CREDITS DOLLARS (78,973) (796,089)
LONG TERM PROVISIONS DOLLARS (4,601) -
OTHER LIABILITIES DOLLARS (9,930) -
OTHER LIABILITIES OTHER CUR. 19,323 -
TOTAL (DEBITS) CREDITS (292,289) (1,847,478)
(LOSS) PROFIT FROM RATE OF EXCHANGE DIFFERENCE (9,357) (266,499)
30. Extraordinary Items
As of March 31, 2001 the partial reversion of the provision for the repair of
Furnace C of Th Ch$975,800 net of tax was acknowledged, because the furnace
was completely rebuilt instead of being repaired.
As of March 31, 2002 there are no transactions in this item.
31. Expenses for the issue and placement of stocks and debt instruments
The subsidiary S.A. Vina Santa Rita carried out a sale of bonds in March 2001,
incurring in Sales Expenses that as of March 31, 2002 total Th Ch$260,346 and
are classified as Short-Term Prepaid Expenses Th Ch$38,416 and Other Long-term
Assets Th Ch$221,930. The charge against Results for the amortization of these
expenses is Th Ch$10,841.
Following is an itemized list of the expenses.
2002 2002 2001 2001
ThCh$ ThCh$ ThCh$ ThCh$
Short-term Long-term Short-term Long-term
Stamp tax 26,740 200,551 31,769 205,288
Sales commission 10,690 21,379 5,335 52,150
Printing expenses 986 0 294 1,702
------- ------- ------ -------
TOTAL 38,416 221,930 37,398 259,140
32. Cash Flow Statement
CASH FLOW STATEMENT
The values included in MISCELLANEOUS on the Cash Flow Statement are detailed
in the attached appendix.
CRISTALERIAS DE CHILE S.A.
CASH FLOW STATEMENT
1. The following is the detail of the item: OTHERS:
2002 2001
Th Ch$ Th Ch$
541.11.80 Other expenses paid
Exchange difference 62,527 93,250
Donations 18,853 11,174
Tax exemptions 65,823 -
Fees for advisory services 36,723 43,628
Drama area expenses - 76,875
Colo Colo contract 29,990 -
Severance payments 5,614 -
Contingencies 30,001 -
Other expenses 34,336 102,606
Total 283,867 327,533
541.13.15 Sale of other investments
LP bond share 174,681 -
Sale of PRC - 1,258,617
Redemption Time Dep. over 90 days 4,756,872 -
Total 4,931,553 1,258,617
541.13.30 Other investment income
Maturity of future contracts 1,829,664 500,867
541.13.65 Other investment made
Purchase of shares - 17,270
Future contracts 336,681 -
Total 336,681 17,270
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 $ Amount Th Ch $
Dividend 149 (4,230,400) April-02
Amounts payable investment (576,123) April-02
Amounts payable investment (271,857) May-June 02
TOTAL (5,078,380)
33. 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$137,800 in
2002 (Th US$129,483 in 2001) 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.
CRISTALERIAS DE CHILE S.A.
NOTE 33: DERIVATIVE CONTRACTS
DESCRIPTION OF CONTRACTS
-------------------------------------------
MATURITY OR PURCHASE/ VALUE OF
TYPE OF TYPE OF VALUE OF EXPIRATION SPECIFIC SALE ROTECTED ITEM OR PROTECTED
DERIVATIVE CONTRACT CONTRACT DATE ITEM POSITION TRANSACTION ITEM
- ---------- -------- -------- ----------- -------- --------- ------------------- ---------
NAME AMOUNT
------ --------
FR CI 1,758,214 SECOND 2002 EXCH RATE P 0 0 0
FR CI 40,196,632 THIRD 2002 EXCH RATE P 0 0 0
FR CI 22,655,047 FOURTH 2002 EXCH RATE P 0 0 0
FR CI 16,106,396 FIRST 2003 EXCH RATE P 0 0 0
FR CI 2,649,764 SECOND 2003 EXCH RATE P 0 0 0
FR CCPE 675,300 FIRST 2003 EXCH RATE P DOLLAR LOAN 675,900 655,900
FR CCPE 2,788,360 FOURTH 2002 EXCH RATE P DOLLAR LOAN 2,788,360 2,623,600
FR CCPE 62,260 FOURTH 2002 EXCH RATE P DOLLAR LOAN 62,260 65,590
FR CCPE 62,260 THIRD 2002 EXCH RATE P DOLLAR LOAN 62,260 65,590
FR CCPE 2,788,360 FOURTH 2002 EXCH RATE P DOLLAR LOAN 2,788,360 2,623,600
FR CCPE 1,331,000 FIRST 2003 EXCH RATE P DOLLAR LOAN 1,311,000 1,311,800
FR CCPE 1,331,000 FIRST 2003 EXCH RATE P DOLLAR LOAN 1,311,000 1,311,800
FR CCPE 675,300 FIRST 2003 EXCH RATE P DOLLAR LOAN 675,300 655,900
FR CCPE 668,000 FIRST 2003 EXCH RATE P DOLLAR LOAN 668,000 655,900
FR CCPE 668,000 FIRST 2003 EXCH RATE P DOLLAR LOAN 668,000 655,900
FR CI 1,334,140 SECOND 2002 EXCH RATE P 0 0 0
ACCOUNTS AFFECTED
--------------------------------------------------
ASSETS/LIABILITIES EFFECT ON RESULT
----------------------- ----------------------
NOT
NAME AMOUNT REALIZED REALIZED
----------- --------- ---------- --------
ASSETS 209,486 209,486 0
LIABILITIES 154,432 -2,154,432 0
LIABILITIES 1,243,117 -1,243,117 0
LIABILITIES 304,703 -304,703 0
LIABILITIES 26,164 -26,164 0
LIABILITIES 19,753 19,753 0
LIABILITIES 181,678 181,678 0
ASSETS 4,330 4,330 0
ASSETS 4,281 4,281 0
ASSETS 178,324 178,324 0
ASSETS 19,361 19,361 0
ASSETS 19,361 19,361 0
ASSETS 19,764 19,764 0
ASSETS 12,136 12,136 0
ASSETS 12,136 12,136 0
LIABILITIES 32,720 32,720 0
34. Contingencies and Restrictions
CONTINGENCIES AND COMMITMENTS
As of March 31, 2002, there is a guarantee delivered in the amount of Th
Ch$6,790 (Th Ch$6,789 in 2001), according to the detail in the attached
chart.
LAWSUITS OR OTHER LEGAL ACTIONS THE COMPANY IS INVOLVED IN
As of March 31, 2002 and 2001 there are pending lawsuits and other legal
actions corresponding to the subsidiary Red Televisiva Megavision, which are
presented in the annexed chart.
OTHER CONTINGENCIES
In relation to the syndicated loan subscribed with JP Morgan Chase Bank and
other 8 creditor banks for US$ 100 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 Debt
to Capitalization Ratio to exceed the 0.36 to 1.0 ratio at any time. The
capitalization ratio for Cristalerias de Chile S.A. and its subsidiaries is
the sum: Net Equity plus Minority Interests plus Total Consolidated Debt.
b) NON-CONSOLIDATED NET DEBT TO EBITDA RATIO
Cristalerias de Chile S.A will not allow the Non-consolidated Net Debt to
EBITDA ratio to exceed the 3.0 to 1.0 ratio at any time. The non-consolidated
EBTDA is the sum of the following: operating income plus depreciation and
amortization, plus non-cash charges (in the extent that they have been
deducted to determine the operating income and cash income for interests minus
non-cash credits (in the extent that they have been added when determining
operating income), in each case for such period.
c) INTEREST COVERAGE RATIO
Cristalerias de Chile S.A. will not allow the Interest Coverage Ratio to be
lower than the following ratios in any point in time during the following
respective periods: the period from the date the Credit Agreement is entered
into until December 31, 2000, ratio 4.00; period between January 1, 2001 and
December 31, 2002, ratio 3.50; and period from January 1, 2003 and during the
entire following period, ratio 4:00.
The Interest Coverage is understood as the day when it is determined, the
ratio between the non-consolidated EBITDA for the four consecutive fiscal
quarters ending on, or most recently ended before, that date, and the Interest
Expenses for that period.
d) NET EQUITY
Cristalerias de Chile S.A. will maintain a minimum of the following amounts:
period from the date the Credit Agreement is entered into until December 31,
2002, UF 10,000,000 and period from January 1, 2003 and during the entire
following period, UF 11,900,000.
As of March 31, 2002 and 2001, management is not aware of any other
contingencies that could affect the company.
CRISTALERIAS DE CHILE S.A.
NOTE 34: CONTINGENCIES AND RESTRICTIONS - DIRECT GUARANTEES
CREDITOR OF DEBTOR TYPE OF ASSETS
GUARANTEE NAME GUARANTEE COMMITTED BALANCES PENDING
- --------------- -------------- ----------- -------------------- ------------------------------------
BOOK PAYMENT AS OF CLOSING DATE
RELATIONSHIP TYPE VALUE OF FINANCIAL STATEMENTS
------------------- --------- --------- ------------------------------------
09/30/2001 09/30/2000 09/30/2002
---------- ---------- ----------
EDIFICIO CRISTALERIAS COMMER DEPOSIT FLOOR 7,593 7,593 6,789 0
METROPOLIS AGF DE CHILE S.A. CIAL
BANCO SANTIAGO RED TELEVISIVA COMMER MORTGAGE LAND 3,569,869 2,235,843 2,489,861 2,235,843
MEGAVISION CIAL
SCOTIABANK RED TELEVISIVA COMMER PLEDGE TV EQUIP 397,705 2,375,084 1,596,824 820,241
MEGAVISION CIAL
BANCO CREDITO E RED TELEVISIVA COMMER MORTGAGE TV EQUIP 208,180 650,040 730,121 285,594
INVERS MEGAVISION CIAL
SUNDRY CLIENTS RED TELEVISIVA COMMER ADVERTISING 0 0 9,769,996 7,527,943 0
MEGAVISION CIAL
RELEASE OF GUARANTEES
- --------------------------------------------------
ASSETS 09/30/2003 ASSETS 09/30/2004 ASSETS
- --------- ---------- ------ ---------- ------
0 0 0 7,593 7,593
3,569,869 0 0 0
137,348 388,710 65,089 388,710 65,089
91,464 161,977 51,874 161,977 51,874
0 0 0 0 0
CRISTALERIAS DE CHILE S.A.
NOTE 34: CONTINGENCIES AND RESTRICTIONS - INDIRECT GUARANTEES
CREDITOR OF TYPE OF ASSETS
GUARANTEE DEBTOR GUARANTEE COMMITTED BALANCES PENDING RELEASE OF GUARANTEES
- -------------- -------------------- --------- ---------- --------------------- -----------------------------------------------------
BOOK PAYMENT AS OF CLOSING DATE
NAME RELATIONSHIP TYPE VALUE OF FINANCIAL STATEMENTS
---------- ------------------- ---- ----- --------------------------------
Societe des
Participations 03-31-2002 03-31-2001 03-31-2003 ASSETS 03-31-2004 ASSETS 03-31-2005 ASSETS
- -------------- ---------- ---------- ---------- ------ ---------- ------ ---------- ------
Financieres et RAYEN CURA AFFILIATE SOLIDARY 0 0 3,777,984 3,512,703 755596 0 755,596 0 2,266,792 0
Industrielles S.A.I.C.
CRISTALERIAS DE CHILE S.A.
NOTE 34: Trials
Court Cause Rol No. Origin Process Stage Committed amount
(approximately Th Ch$)
22 5655-1999 Civil First Proof in cause not received yet 470,000
16 4822-1999 Civil Second Revision and verdict pending 100,000
12 3025-1997 Civil Second Revision and verdict pending 100,000
1 1242-2000 Labor First Verdict pending 10,000
1 3538-2000 Labor First Verdict pending 15,000
2 2294-1999 Local police Second Revision and verdict pending 9,500
35. Guarantees obtained from third parties
As of March 31, 2002 and 2001 the company has received guarantees from third
parties that are shown below:
Item 2002 2001
ThCh$ ThCh$
Rental of Property BankBoston UF 367.69 5,959 5,963
Rental of Property to Telecomunicaciones Cono Sur Ltda. (UF 130) 2,106 2,107
Rental of Property Office 202 AGF Building 3,806 3,809
Sight drafts suppliers 1,241 1,273
Installation of Buin Tanks (Tersanoix S.A.) 155,112 158,990
Purchase of vine stem cuttings and plants (Intelmaq) 35,051 36,383
Underground materials storehouse Buin Salfa Montajes 31,834 0
Grape purchase 0 70,893
- ------
235,109 243,035
======= =======
36. Local and Foreign Currency
Charts are attached showing the foreign currency balance as of March 31, 2002
and 2001.
Cristalerias de Chile S.A.
NOTE 36: LOCAL AND FOREIGN CURRENCY - ASSETS
Items Currency Amount
03-31-2002 03-31-2001
Available funds Non-adjust. Ch$ 1,879,754 2,171,148
Dollars 145,788 347,487
Other currencies 6,056 0
Time deposits Dollars 16,054,504 19,312,481
Adjustable Ch$ 4,232,460 16,861,159
Non-adjust. Ch$ 3,015,640 1,261,108
Marketable Securities Adjustable Ch$ 3,264,180 8,062,974
Non-adjust. Ch$ 78,729 1,007
Dollars 9,960,792 0
Sales receivable Non-adjust Ch$ 23,228,404 22,645,223
Dollars 2,219,115 5,997,191
Euros 0 9,546
Other currencies 1,795,029 818,554
Documents Receivable Non-adjust. Ch$ 4,613,859 3,388,030
Dollars 14,039 0
Other currencies 7,447 0
Sundry Debtors Adjustable Ch$ 423,366 0
Non-adjust. Ch$ 350,410 0
Dollars 29,116 949,460
Euros 0 71,314
Argentinian Pesos 9,880 0
Other currencies 0 23,592
Documentos and Accts. Receivable Adjustable Ch$ 292,208 142,731
Non-adjust. Ch$ 196,514 0
Dollars 0 61,879
Inventory Adjustable Ch$ 28,256,201 35,080,184
Dollars 2,489,776 2,480,183
Argentinian Pesos 249,916 0
Taxes Receivable Non-adjust. Ch$ 2,022,673 2,467,231
Argentinian Pesos 49,928 0
Prepaid expenses Adjustable Ch$ 896,020 813,531
Dollars 118,378 26,886
Deferred Taxes Non-adjust. Ch$ 1,299,662 806,783
Other Current Assets Non-adjust. Ch$ 11,467,161 5,369,212
Dollars 5,711,292 2,523,967
FIXED ASSETS Adjustable Ch $ 129,032,131 138,239,491
Investments in other companies Non-adjust. Ch$ 1,431,275 1,558,977
Negative Goodwill Adjustable Ch$ 8,729,892 10,208,006
Long-term debtors Adjustable Ch$ 210,831 152,619
Long-term documents receivable rel. Co. Adjustable Ch$ 1,329 36,612
Intangibles Adjustable Ch$ 11,205,099 11,051,586
Amortization Adjustable Ch$ -832,326 -707,127
Deferred taxes Non-adjust. Ch$ 0 0
Other Adjustable Ch$ 1,300,328 1,438,066
Non-adjust. Ch$ 822,686 1,338,327
Dollars 9,349,749 164,133
Argentinian Pesos 200,424 0
Investments in related companies Adjustable Ch$ 95,628,506 98,265,800
Dollars 11,679,912 0
Total Assets Non-adjust. Ch$ 50,406,767 41,007,046
Dollars 57,772,461 31,863,667
Other currencies 1,808,532 842,146
Adjustable Ch$ 282,640,225 319,645,632
Euros 0 80,860
Argentinian Pesos 510,148 0
Cristalerias de Chile S.A.
NOTE 36: LOCAL AND FOREIGN CURRENCY - CURRENT LIABILITIES
ITEM Currency Up to 90 days 90 Days to 1 Year
03.31.2002 03.31.2001 03.31.2002 03.31.2001
Amount Avg.Annual Amount Avg.Annual Amount Avg.Annual Amount Avg.Annual
Thou Ch$ Int. Rate Thou Ch$ Int. Rate Thou Ch$ Int. Rate Thou Ch$ Int. Rate
Current Liabilities
Short-term obligations Adjust. Ch$ 0 0 6.70 0 0 1,005,124 6.25
with banks 1,120,337
and financial institutions Non-adjust. Ch$ 1,009,719 6.36 - 0 0 0 93,624 0
Dollars 0 0 - 5.55 0 0 0 0
2,530,929
Argentinian 4,288 0 - 0 0 0 0 0
Pesos
Euros 0 0 145,225 0.04 0 0 0 0
Other currencies 0 0 53,510 0 0 0 0 0
Long-term obligations Adjust. Ch$ 2,310,110 7.48 12,431 7.16 731,573 7.48 37,295 7.16
with banks
and financial institutions Dollars 18,838,385 3.375 1,398,110 7.43 0 0 2,680,558 7.43
Dollars 814,307 4.52 199,975 7.43815 2,255,424 5.59 0 0
Adjust. Ch$ 0 0 - 0 0 0 5,837,939 7.12
Long-term obligations Dollars 142,728 11 - 0 119,757 11 0 0
Adjust. Ch$ 0 0 - 0 2,984 7 190,256 0
Obligations with the Adjust. Ch$ 215,707 6.48 427,408 6.59 346,503 6.05 0 0
public
Dividends payable Non-adjust. Ch$ 67,895 0 50,946 0 0 0 1,285 0
Accounts payable Non-adjust. Ch$ 8,627,446 0 10,430,553 0 0 0 0 0
Dollars 832,664 0 1,231,262 0 341,152 0 114,780 0
Euros 2,591 0 - 0 0 0 0 0
Argentinian 45,602 0 - 0 0 0 0
Pesos
Other currencies 14,874 0 245 0 0 0 0
Documents Payable Adjust. Ch$ 54,953 0 2,096,321 0 56,803 0 73,093 0
Dollars 2,701,821 0 11,068,337 0 353,912 0 0 0
Euros 392,476 0 276,027 0 0 35,311 0
Other currencies 305,674 0 902,689 0 0 0 744,530 0
Sundry Creditors Non-adjust. Ch$ 537,212 0 462,772 0 0 0 0 0
Dollars 0 0 90,179 0 0 0 0
Docts and accts payable Adjust. Ch$ 362,147 0 - 0 550,721 0 0 0
to rel co.
Non-adjust. Ch$ 3,630 0 230,948 0 0 0 0 0
Dollars 0 0 - 0 331,309 0 0 0
Provisions Adjust. Ch$ 134,993 0 399,792 0 138,794 0 292,260 0
Non-adjust. Ch$ 6,777,275 0 5,179,692 0 110,302 0 0 0
Dollars 1,429,114 0 55,274 0 1,115,030 0 2,258,426 0
Argentinian 4,158 0 - 0 0 0 0
Pesos
Other currencies 434,272 0 - 0 0 0 0 0
Withholdings Non-adjust. Ch$ 1,999,474 0 1,287,131 0 0 0 0 0
Prepaid income Non-adjust. Ch$ 1,672,814 0 2,966,065 0 0 0 0 0
Income tax Non-adjust. Ch$ 0 0 - 0 0 0 0 0
Other Current Liabilities Non-adjust. Ch$ 3,551,651 0 306,346 0 0 0 0 0
Dollars 453,902 - 0 0 0
Total Current Liabilities Adjust. Ch$ 3,077,910 4,056,289 1,827,378 0 7,435,967 0
Non-adjust Ch$ 24,247,116 20,914,453 110,302 0 94,909 0
Dollars 25,212,921 16,574,606 4,516,584 0 5,053,764 0
Argentinian 54,048 - 0 0 0 0
Pesos
Euros 395,067 421,252 0 0 35,311 0
Other currencies 754,820 956,444 0 0 744,530 0
Cristalerias de Chile S.A.
NOTE 36: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES
CURRENT PERIOD 03-31-2002
ITEM Currency 1-3 Years 3-5 years 5-10 Years More than 10 years
Amount Average Amount Average Amount Average Amount Average
Thou Ch$ Interest Thou Ch$ Interest Thou Ch$ Interest Thou Ch$ Interest
Rate Rate Rate Rate
Obligations with Banks Dollars 37,480,000 3.375 9,370,000 3.375 0 0 0 0
and
Financial Institutions Dollars 4,067,353 4.56 - 0 0 0 0 0
Adjustable Ch$ 3,096,767 7.48 777,421 7.48 0 0 0 0
Argentinian 57,044 5.26 - 0 0 0 0 0
Pesos
Obligations with the
public Adjustable Ch$ 404,942 0 3,239,532 0 0 0 16,197,660 0
Notes payable Dollars 36,612 0 - 0 0 0 0 0
Long-term creditors Dollars 166,730 0 - 0 0 0 0 0
Adjustable Ch$ 57,530 0 - 0 0 0 0 0
Sundry creditors Adjustable Ch$ 3,494 7 1,165 7 0 0 0 0
Dollars 232,188 11 4,630 11 0 0 0 0
Deferred custom duties Dollars 392,541 11.06 735,379 11.06 0 0 0 0
Long-term provisions Dollars 3,298,846 0 - 0 0 0 0 0
Adjustable Ch$ 3,603,833 0 - 0 0 0 0 0
Deferred taxes Non-adjust. Ch$ 2,287,362 0 - 0 0 0 0 0
Total long-term
liabilities Dollars 45,674,270 10,110,009 0 0 0
Adjustable Ch$ 7,166,566 4,018,118 0 16,197,660
Argentinian 57,044 - 0
Pesos
Non-adjust. Ch$ 2,287,362 - 0 0
Cristalerias de Chile S.A.
NOTE 36: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES
PERIOD PREVIOUS TO 03-31-2001
ITEM Currency 1-3 Years 3-5 Years 5-10 Years More than 10 years
Amount Average Amount Average Amount Average Amount Average
Thou Ch$ Interest Thou Ch$ Interest Thou Ch$ Interest Thou Ch$ Interest
Rate Rate Rate Rate
Obligations with banks Dollars 34,848,244 7.43815 26,136,181 7.43815 0 0 0 0
and financial institutions Dollars 4,867,338 7.66 1,885,196 7.66 0 0 0 0
Adjustable Ch$ 397,868 1.80 397,869 1.80 0 0 0 0
Documents payable Adjustable Ch$ 90,425 0 0 0 0 0 0 0
Obligations with public Adjustable Ch$ 753,846 6.30 3,444,284 0 1,688,374 0 14,520,022 0
Sundry creditors Adjustable Ch$ 59,488 0 0 0 0 0 0 0
Dollars 37,907 0 0 0 0 0 0 0
Dollars 218,664 11 205,995 11 0 0 0 0
Adjustable Ch$ 5,398 7 2,526 7 0 0 0 0
Dollars 606,703 11.06 624,106 11.06 0 0 0 0
Long-Term provisions Dollars 5,077,423 0 0 0 0 0 0 0
Adjustable Ch$ 3,859,385 0 0 0 0 0 0 0
Deferred taxes Non-Adj. Ch$ 265,053 0 157,260 0 0 0 0 0
Total long-term
liabilities Dollars 45,656,279 28,851,478 0 0
Adjustable Ch$ 5,166,410 3,844,679 1,688,374 14,520,022
Non-Adj. Ch$ 265,053 157,260 0 0
37. Penalties
The SVS and other administrative authorities have not imposed any penalties
during the 2002 and 2001 fiscal years.
38. Subsequent Events
CRISTALERIAS DE CHILE S.A.
In the Special Shareholders' Meeting held on April 16, 2002, the following
agreements were reached:
1. The Board of Directors was authorized to name the company Langton Clarke -
Auditores Consultores Limitada or in its defect, Price Waterhouse Coopers, as
external auditors, depending on the best price alternative for Cristalerias de
Chile S.A.
2. Name the newspaper "El Diario" as the written media to publish summons to
meetings.
3. Distribute Dividend No. 149 of $66.10 per share, which will be paid as from
April 26, 2002.
4. The dividend policy adopted for 2002 was to distribute 50% of the fiscal
year's profits.
5. Give the Board of Directors the power to make agreements and distribute
provisional dividends to be charged against fiscal year profits. Also, it was
authorized, without calling a General Shareholders' Meeting, to agree the
payment of eventual dividends to be charged against previous fiscal year
profits.
Capital Increase of Rayen Cura S.A.I.C.
On April 22, the company made a loan of UF 229,729.92 to the subsidiary
CristalChile Inversiones S.A., which the latter used for a capital increase of
its associated company Rayen Cura S.A.I.C. of US$5,760,000, thereby
maintaining a 40% stake in that company.
S.A. VINA SANTA RITA
The subsidiary informed the following subsequent events:
On April 11, 2002, a Regular Shareholders' Meeting was held where the
following agreements were reached:
- - Payment of definitive dividend number 12 of $2.37 per share corresponding to
Fiscal Year 2001 to be paid on April 26, 2002.
- - Maintaining the Board of Directors payments of 2% of the net profits was
approved. This will be distributed among all the members of the Board. The
chairman of the Board will receive twice the amount of a regular member with
the same time dedication.
- - Langton Clarke Auditores y Consultores Limitada, or in its defect Price
Waterhouse or Deloitte & Touche were approved as external auditors,
authorizing the Board of Directors to appoint the best price alternative for
Vina Santa Rita. At the time of hiring the auditing company it will be
required to be registered in the Securities and Exchange Commission (SEC).
- - In order to rate the bonds issued by the Company, the companies Fitch Chile
Clasificadora de Riesgo Ltda. and Humphreys y Cia Clasificadora de Riesgo
Ltda. were selected. Also, it was agreed that the Company should maintain the
rating of its stocks, using the same companies mentioned above for bond rating
for such purpose.
- - It was agreed that the notices and summons to Shareholder Meetings shall be
published in the "El Diario" newspaper or in its defect in the "La Nacion"
newspaper.
- - It was agreed that the profits of each fiscal year, provided that there are
no accumulated losses, be used at least 30% to pay cash dividends, which may
be provisional or final.
- - It was approved that each of the attendants to the meetings organized by the
Directors Committee be paid a sum equivalent in Chilean pesos to 2 U.T.M. for
each meeting they attend with a maximum of 10 U.T.M. per month.
- - A budget of UF 586 per year for 2002 was approved to finance the expenses of
the Members of the Board including the fees of any advisors they may hire. The
Board of Directors was authorized to assign if necessary supplementary funds,
rendering an account thereof in the following General Shareholders' Meeting.
39. ENVIRONMENT
ENVIRONMENT
The company is permanently committed with environment preservation.
During the first quarter of 2002 the parent company carried investments of Th
Ch$157,468 corresponding mainly to the repair of an electrostatic precipitator
to filter the gases discharged from smelting processes. This makes it possible
for the company to ensure that is fulfills particulate matter discharge
standards issued by the controlling agencies.
The subsidiary S.A. Vina Santa Rita has invested Th Ch$2,544 in the January -
March, 2002 period to comply with the ordinances and laws related to
Industrial Process and Installations.
40. TIME DEPOSITS
As of March 31, 2002 and 2001 the company presents the following information:
INSTITUTION CURRENCY 2002 2001
Th$ Th$
Banco de Santiago US$ 0 4,290,389
Banco de Credito e Inversiones US$ 5,709,902 286,825
Banco Bilbao Viscaya N.Y. US$ 0 2,488,191
Banco Santander N.Y. US$ 0 12,247,077
Banco Scotiabank US$ 8,318,273 0
Corpbanca US$ 2,026,329 0
Banco Santiago UF 1,079,862 8,768,455
Banco de Chile UF 0 8,092,703
Banco de Credito e Invesiones $ 0 1,261,108
Banco de Santiago $ 5,277,699 0
Banco Santander $ 890,539 0
TOTAL 23,302,604 37,434,748
41. STOCK TRANSACTIONS
During the 2002 and 2001 fiscal years members of the board, controlling
stockholders, related individuals and entities did not carry out any stock
transactions:
42. DISTRIBUTION OF SHAREHOLDERS
The distribution of stockholders as of March 31, 2002 and 2001 is the
following:
% of Shareholding No. of Shareholders
TYPE OF SHAREHOLDER 2002 2001 2002 2001
10% or more shareholding 34.03 45.88 1 2
Less than 10% shareholding with investment
equal to or higher than 200 UF 65.81 53.95 257 236
Less than 10% shareholding with investment
lower than 200 UF 0.16 0.17 833 856
TOTAL 100.00 100.00 1,091 1,094
CONTROLLER OF THE COMPANY 52.14 52.14 3 3
43. REMUNERATIONS OF THE BOARD OF DIRECTORS
As of March 2002 and 2001 payment and reserves were made in the amounts of Th
Ch$883,761 and Th$906,796, respectively for remunerations and share of profits
as follows:
2002 2001
ThCh$ ThCh$
Share of previous fiscal year profits 856,240 822,414
Fiscal year reserves 27,065 84,382
Fees paid 456 0
TOTAL 883,761 906,796
CRISTALERIAS DE CHILE S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 30, 2002 AND 2001
1.- CONSOLIDATED FINANCIAL INDICATORS
03-31-2002 03-31-2001 12-31-2001
LIQUIDITY
Current liquidity times 2.07 2.34 2.38
Acid ratio times 1.48 1.6 1.73
DEBT
Debt ratio times 0.68 0.77 0.68
Short-term debt % 0.41 0.36 0.35
Long-term debt % 0.59 0.64 0.65
Coverage of interest expenses times 1.78 1.55 4.07
ACTIVITY
Total assets Mill Ch$ 393,138 393,439 391,556
Investments Mill Ch$ 4,019 10,468 33,656
Disposal of property Mill Ch$ 8 41 2,378
Inventory turnover times n.a. n.a. n.a.
Inventory permanence days n.a. n.a. n.a.
RESULTS
Operating income Mill Ch$ 30,088 33,323 141,361
Operating costs Mill Ch$ 18,940 22,238 87,112
Operating results Mill Ch$ 6,465 6,110 32,454
Financial expenses Mill Ch$ 1,230 2,068 6,904
Non-operating results Mill Ch$ (4,891) (4,278) (8,412)
R.A.I.I.D.A.I.E. Mill Ch$ 5,557 6,395 40,033
After-tax profit Mill Ch$ 176 1,738 17,700
RATE OF RETURN
Return on equity % 0.0008 0.01 0.09
Return on assets % 0.0004 0.01 0.05
Return on operating assets % 0.03 0.03 0.16
Profit per share $ 2.75 26.5 276.56
Return on dividends % 0.03 0.04 0.03
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.
Coverage of Interest Expenses: 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.
R.A.I.I.D.A.I.E.: Result before taxes, interest, depreciation, 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.
The main trends observed in the 2002 fiscal year indicators are:
LIQUIDITY INDICES
There is a reduction in the liquidity index in relation to 2001 because of the
transfer to short-term of the long-term syndicated loan installments, the
increase in reserves, and the effect on bank loans in dollars of the rise in
the price of the dollar, which rose by 10.2% compared to March 2001.
DEBT INDICES
The debt and short and long-term debt distribution ratios show variations,
which may be explained by the above reasons.
The coverage index of financial expenses fell with respect to December of the
previous year because of lower profits. Whereas, this index rose compared to
that of March 2001 because of lower financial expenses in the first quarter of
2002.
PROFITABILITY INDICES
These indices fell because of the reduction in profits during the first
quarter of the year.
On the other hand, although dividends distributed between April 2000 and March
2001 rose by 8.1% compared to the January/December 2001 period, the rate of
return of dividends dropped because of the increase in the price of stocks in
the stock exchange, which rose from $3,512 per share as of March 31, 2001, to
$4,300 per share as of December 31, 2001.
2. DIFFERENCE BETWEEN BOOK VALUE AND MARKET VALUE OF MAIN ASSETS.
The financial statements as of March 31, 2002 have been prepared according to
generally accepted accounting principles and general and specific norms of the
Securities and Insurance Commission, which is the agency that regulates the
Company. The valuation of the assets includes adjustment for currency
devaluation, provisions, and technical revaluations. We believe the foregoing
is a reasonable way to value the company's permanent investments.
As of March 31, 2002 there were financial investments in stocks recorded in
the accounting according to their purchase price at Ch$ 3,264 million whose
market value on the same date was Ch$ 5,199 million.
3. RESULTS FOR THE 2001 PERIOD
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. Since the second quarter of 2001, the company does not consolidate its
results with Envases CMF S.A. (formerly Crowpla-Reicolite S.A.). On June 29,
2001, Cristalerias de Chile S.A. ("Cristalerias") and Embotelladora Andina
S.A. ("Andina") entered into a series of contracts in order to establish an
association or joint venture in the PET plastic packaging businesses, which
were developed previously through their subsidiaries Crowpla-Reicolite S.A.
and Envases Multipack S.A. ("Multipack"), respectively. This association was
done through the incorporation of Andina Inversiones Societarias S.A., as
Crowpla-Reicolite's shareholder, with a 50% stake in that company. The
remaining 50% was maintained by Cristalerias. Likewise, Crowpla-Reicolite S.A.
acquired from Multipack the necessary assets for the development of the joint
venture. On the other hand, on September 27, 2001, stocks of Ediciones Chiloe
and Ediciones Financieras were sold to Recoletos Chile Ltda. (Financial
Times), CIECSA keeping a 50% stake in Ediciones Chiloe. As of that date CIECSA
stopped consolidating its financial statements with Ediciones Financieras S.A.
("El Diario").
As of March 2002, the net profit of the Company was Ch$ 176 million compared
with $1,738 million in 2001. This is due to a greater non-operating loss of
$4,891 million, compared with a loss of $4,013 million in 2001, chiefly due to
a greater net loss of the subsidiaries, including the effect of the
devaluation in Argentina on our investment in Rayen Cura when applying a rate
of exchange of 2.9 Argentine pesos per dollar, which generates a loss of
$1,477 million; the non-realization of an extraordinary income of $976 million
corresponding to the reversion of the reserve for the repair Furnace C of
Cristalerias, which was included in "Extraordinary Items" in 2001. This was
partly offset by the operating result that improved compared with 2001,
totaling $6,465 million, due mainly to better operating results in the glass
business and CIECSA.
As of March 2002 consolidated sales of Cristalerias totalled Ch$30,088
million, increasing by 3.5% compared to sales in the previous period, adjusted
for the non-consolidation of Crowpla-Reicolite and Ediciones Financieras
during the period.1 The increase in the sales of Cristalerias in the
consolidated statements results from greater sales in the glass business
(5.6%) and CIECSA (26,9%). The consolidated operating result totaled Ch$6,465
million, which represents a 8.6% increase, adjusting the operating profit of
2001 by Ch$155 million, corresponding to the profit generated by
Crowpla-Reicolite and Ediciones Financiera during the period. The glass
business accounted for Ch$4,956 million, Santa Rita Ch$1,492 million, CIECSA
Ch$14 million of the operating results.
The individual result of Cristalerias de Chile S.A. and its main subsidiaries
is analyzed in greater detail below.
3b. Individual Result
As of March 2002, the Company had unconsolidated sales of Ch$15,090 million,
which is a 5.6% increase compared to the 2001 fiscal year. Volumes sold
increased by 5.3%, reaching
1 As of September 2000 (?? no se ve la fecha) the sales of Crowpla-Reicolite
and Ediciones Financieras totaled Ch$3,604 million and Ch$497 million
respectively.
53.922 tons. This sales volume is mainly due to greater sales of bottles for
beer non-returnable and wine markets.
Operating profit rose 12.6% totalling Ch$4,956 million. For comparison
purposes the operating margin recorded an increase which is due to greater
sales of imported products with a lower margin compared to the first quarter
of 2001.
The Company's net profit was Ch$176 million in 2002 to Ch$1,738 million in
2001. The result can be explained partly by decline in the non-operating
results, which passed from a loss of $2,989 million in 2001 to a loss of
$3,961 million in 2002. This greater loss is due to the effect of the
devaluation of the Argentine peso (from $1.7 to $2.9 Argentine pesos per
dollar) on the accounting of the financial statements of Rayen Cura, which
generate a quarterly loss of $1,477 million. This was offset in part by better
results in Vina Santa Rita and CIECSA. In addition, it is worth noting that
the company had an extraordinary income of Ch$976 million in 2001
corresponding to the reversion of the reserve for repairing Furnace C,
included in the "extraordinary items" account.
3c. Result in Subsidiaries
As of March 2002 Santa Rita's profit totaled Ch$1,016 million, which
represents a 5,4% increase over the same period in 2001. In the local market,
the Company reached volumes that were 17.0% higher than in 2001. The prices in
this market fell 20,4% in real terms, as a result of increased competition and
lower costs of musts, which led to sales valued in the local market showing a
reduction of 6.9%. Sales in the export market decreased by 7.1% in terms of
volume because of lower sales to the European and Latin American markets.
During the period, exports represented 52% of the total income amounting to
US$9.9 million. The operating result fell by 30.4%, totaling Ch$1,492 million,
mainly as a result of the drop in prices in the local market and a reduction
in volumes in the export market. The average price in dollars per case for the
export market was US$ 29.6, whereas the average for the industry was US$22.05
per case. As of March 2002, Santa Rita registered a non-operating loss of
Ch$261 million, compared with a loss of Ch$817 million in 2001. This
improvement can be mainly explained by lower financial costs.
Megavision, CIECSA's principal subsidiary showed operating earnings of Ch$41
million, compared to a loss of Ch$591 million in 2001. Megavision achieved an
22.4% share of the audience during the period. Net sales increased by 26.2%,
reaching Ch$13,626 million, due to an increase in real time productions. As of
March 2002, the Company showed a net loss of Ch$187 million compared with a
loss of Ch$791 million during the same period in 2001. CIECSA improved its
non-operating results passing from a loss of Ch$543 million in 2001 to a loss
of Ch$361 million in 2002 mainly due to smaller losses in subsidiaries.
CIECSA's final result was a loss of Ch$252 million compared with a loss of
Ch$875 million in 2001.
Envases CMF S.A. recorded net profits of Ch$278 million in 2002 compared with
a profit of Ch$146 million in 2001 (the latter only considers the result of
Crowpla-Reicolite before associating with Multipack). The company increased
sales by 131% during the period, totaling Ch$8,341 million. It is worth noting
that this significant increase in sales is due mainly to the company's
association with Multipack at the end of June 2001. Sales volumes increased by
109%, totaling 5,950 tons. Operating profit was Ch$805 million, which is 126%
higher than the profit obtained the previous year.
In the area of cable TV, Cristalchile Comunicaciones S.A. (99.99% subsidiary
of Cristalerias), is the owner of 50% of Cordillera Comunicaciones Ltda., in
turn the owner of 99% of Metropolis-Intercom S.A.
Metropolis-Intercom S.A. registered sales of Ch$11,372 million during 2002
compared with Ch$10,681 million during the same period the previous year. As
of March 2002, Metropolis-Intercom had a net loss of Ch$3,777 million compared
with a loss of Ch$3,959 million in 2001. This result includes a depreciation
charge of Ch$2,683 million (Ch$2,863 million in 2001) corresponding to the HFC
network acquired in July 2000. The company ended the period with 247,000
subscribers, 10.5% down compared to the same date in 2001, due to a greater
number of discontinued subscriptions because of the deteriorated domestic
economic situation.
As a result of the foregoing and the amortization of the lower value of
investments through Cordillera Comunicaciones from $1,003 million in the
quarter ($944 million in 2001), Cristalchile Comunicaciones recorded a net
loss of $2,391 million (loss of $2,417 in the first quarter of 2001).
4. CASH FLOW STATEMENT
During the first quarter of 2002 a total net positive flow of Ch$8,997 million
was generated, which is explained by a positive flow generated by operating
activities of Ch$11,159 million and a positive financing flow of Ch$444
million, which were partially offset by a negative flow of investment
activities of Ch$2,606 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 a net increase in loans
from related companies of $347 offset by a reduction in loans of $1,090
million, and dividends paid of $1,880 million.
The investment flow is mainly explained by the incorporation of fixed assets
of Ch$4,464 million, which are financed with the redemption of Term Deposits
at over 90 days for $4,757 million.
The foregoing results in an increase in the final balance of cash and cash
equivalent, which passed from Ch$37,649 million as of December 31, 2001 to
$46,837 million as of March 31, 2002.
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
a. 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, 2002
Short-Term and Long-Term bank liabilities and obligations with the public
totaled Ch$101,217 million, which represents 25.7% of the Company's
consolidated assets.
On the other hand, bank credits total Ch$80,812 million, Ch$72,887 million of
which correspond to credits in foreign currency agreed at variable rates
related to the six-month Libor, Ch$6,916 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$1,009 million correspond
to credits in pesos at an annual rate of 6.96%.
Obligations with the public of Ch$20,405 million correspond to coupon Bonds
issued by the subsidiary Vina Santa Rita at a fixed interest rate.
Also, as of March 31, 2002, the Company had funds available of Ch$59,204
million invested in instruments at different time periods like term deposits,
bonds, fixed-rate mutual funds and resale agreements.
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.
b) Exchange risk.
The Company and its Subsidiaries maintain liabilities in dollars of US$130.4
million, which represent 21.8% of its consolidated assets, and include a
long-term syndicated loan of US$100 million in the parent company and
Long-Term bank credits in Vina Santa Rita of US$12.2 million. As of March 31
the Company and its Subsidiaries has investments in dollars of US$53.1 million
in time deposits, bonds and fixed rate mutual funds. It also has dollar
purchase contracts of US$142.8 million, and a contract that provides coverage
for EURO/Dollar fluctuations for 3.5 million Euros, all of which provides a
reasonable coverage for exchange rate variations risk.
RELEVANT EVENTS
CRISTALERIAS DE CHILE S.A.
In a letter dated April 17, 2002, the SVS was notified that in the Meeting of
the Board of Directors held on April 16, 2002, it was agreed to start a bond
issue process to fully or partially substitute short and medium term
liabilities and finance future investments.
Non-secured sight bonds non-convertible into shares for an amount of UF
4,100,000 (four million one hundred UF) shall be issued. The bonds will be
placed in the capital market, under the terms and conditions, and timing to be
defined.
The Board of Directors authorized the Chairman, Vice-chairman, Mr. Jaime Claro
Valdes and the company's General Manger, so that acting jointly any two of
them, they may establish the terms, conditions and timing of the issue, and so
they may enter into contracts and carry out any acts necessary for the issue
and sale of the bonds.
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 1/1/2002
1.00.01.21 Closing date 3/31/2002
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: Chilean pesos
1.00.01.40 Type of Balance: Consolidated
ASSETS NOTE No. 03-31-02 03-31-01
5.11.00.00 TOTAL CURRENT ASSETS 61,969,972 60,955,214
5.11.10.10 Cash 1,689,109 1,007,920
5.11.10.20 Time deposits 41 17,043,815 20,573,589
5.11.10.30 Marketable securities (net) 4 13,277,651 8,028,381
5.11.10.40 Debtors from sales (net) 5 13,928,600 12,650,109
5.11.10.50 Documents receivable (net) 5 2,589,150 1,374,775
5.11.10.60 Sundry debtors (net) 5 450,178 526,742
5.11.10.70 Doc. & accts receivable related Co. 6 2,589,243 2,835,381
5.11.10.80 Inventories (net) 7 6,050,612 6,784,624
5.11.10.90 Recoverable taxes 8 1,336,477 1,654,468
5.11.20.10 Prepaid expenses 252,049 64,205
5.11.20.20 Deferred taxes 8 720,729 225,320
5.11.20.30 Other current assets 10-11 2,042,359 5,229,700
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 71,544,161 71,510,927
5.12.10.00 Land 12 1,440,857 1,815,934
5.12.20.00 High rises & infrastructure 12 16,850,624 15,444,848
5.12.30.00 Machinery & equipment 12 89,969,990 72,205,393
5.12.40.00 Other fixed assets 12 8,870,109 24,584,808
5.12.50.00 Positive goodwill from technical
revaluation of fixed assets 12 8,253,185 10,220,649
5.12.60.00 Depreciation (minus) 12 53,840,604 52,760,705
5.13.00.00 TOTAL OTHER ASSETS 170,151,214 160,170,017
5.13.10.10 Investment in related companies 14 138,136,547 149,505,458
5.13.10.20 Investment in other companies 0 0
5.13.10.30 Negative goodwill 16 2,099,226 7,502,048
5.13.10.40 Positive goodwill (minus) 0 0
5.13.10.50 Long-term debtors 5 179,489 103,811
5.13.10.60 Doc. & accts receivable related Co. 6 20,475,637 2,842,463
5.13.10.65 Long-term deferred taxes 0 80,543
5.13.10.70 Intangibles 17 0 2,600
5.13.10.80 Amortization (minus) 0 0
5.13.10.90 Other 18 9,260,315 133,094
5.13.20.10 Long-term leasing contracts (net) 0 0
5.10.00 TOTAL ASSETS 303,665,347 292,636,158
LIABILITIES
1.00.01.30 Type of Currency: Chilean pesos
1.00.01.40 Type of Balance: Consolidated
LIABILITIES NOTE No. 03-31-02 03-31-01
5.21.00.00 TOTAL CURRENT LIABILITIES 34,811,591 17,221,252
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 18,838,385 199,975
5.21.10.30 Obligations with the public
(notes) 0 0
5.21.20.40 Short-term portion oblig with public 0 0
5.21.10.50 Long-term oblig. due within 1 year 0 0
5.21.10.60 Dividends payable 67,100 50,946
5.21.10.70 Accounts payable 1,824,364 1,317,267
5.21.10.80 Notes payable 2,445,390 11,091,248
5.21.10.90 Sundry creditors 476,740 496,100
5.21.20.10 Notes & accts payable related Co. 6 253,472 124,945
5.21.20.20 Provisions 23 6,445,196 3,426,900
5.21.20.30 Withholdings 942,013 513,871
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 3,518,931 0
5.22.00.00 TOTAL LONG-TERM LIABILITIES 56,043,953 70,844,966
5.22.10.00 Oblig with Banks & Financial Inst. 21 46,850,000 60,984,425
5.22.20.00 Long-term oblig with public (bonds) 0 0
5.22.30.00 Long-term notes payable 0 0
5.22.40.00 Long-term sundry debtors 1,185,450 1,290,297
5.22.50.00 Long-term notes & accts. payable
related companies 6 0 0
5.22.60.00 Long-term provisions 6,902,679 8,570,244
5.22.70.00 Long-term deferred taxes 8 1,105,824 0
5.22.80.00 Other long-term liabilities 0 0
5.23.00.00 MINORITY INTEREST 0 0
5.24.00.00 TOTAL EQUITY 212,809,803 204,569,940
5. 24.10.00 Paid-in capital 27 62,863,356 62,497,517
5. 24.20.00 Reserve capital revaluation 27 -251,453 62,496
5. 24.30.00 Premium in sale of own shares 27 26,687,378 26,665,262
5. 24.40.00 Other reserves 27 8,009,974 6,889,810
5. 24.50.00 Retained earnings (addition of
codes
5.24.51.00 to 5.24.56.00) 27 115,500,548 108,454,855
5.24.51.00 Reserve future dividends 27 102,386,923 93,663,612
5.24.52.00 Accrued profits 27 13,060,432 13,220,914
5.24.53.00 Accrued losses (minus) 0 0
5.24.54.00 Profit (loss) for the year 27 175,829 1,737,539
5.24.55.00 Prov. dividends (minus) 0 0
5.24.56.00 Accr. deficit dev. Period 27 -122,636 -167,210
5.20.00.00 TOTAL LIABILITIES 303,665,347 292,636,158
INCOME STATEMENT
2.02 INCOME STATEMENT
1.00.01.30 Type of Currency: Chilean pesos
1.00.01.40 Type of Balance: Consolidated
INCOME STATEMENT NOTE No. 03-31-02 03-31-01
5.31.11.00 OPERATING RESULTS 4,955,619 4,402,871
5.31.11.10 Operating Margin 5,993,252 5,424,548
5.31.11.11 Operating income 15,090,301 14,294,954
5.31.11.12 Operating costs (minus) 9,097,049 8,870,406
5.31.11.20 Adm. & sales expenses (minus) 1,037,633 1,021,677
5.31.12.00 NON-OPERATING RESULTS -3,961,206 -2,989,022
5.31.12.10 Interest income 437,301 550,050
5.31.12.20 Profit investments related Co. 14 688,901 750,085
5.31.12.30 Other non-operating income 27 92,445 86,272
5.31.12.40 Profit investments rel- Co.
(-) 4,190,814 3,283,252
5.31.12.50 Amortization neg.goodwill (-) 16 41,028 116,364
5.31.12.60 Interest expenses (minus) 648,241 1,138,141
5.31.12.70 Other non-operat expenses (-) 28 147,534 82,501
5.31.12.80 Price level restatement 29 84,355 48,825
5.31.12.90 Exchange differences 30 -236,591 196,004
5.31.10.00 RESULTS BEFORE INCOME TAX AND
EXTRAORDINARY ITEMS 994,413 1,413,849
5.31.20.00 INCOME TAX 8 -818,584 -652,110
5.31.30.00 EXTRAORDINARY ITEMS 0 975,800
5.31.40.00 PROFIT (LOSS) BEFORE MINORITY
INTEREST 175,829 1,737,539
5.31.50.00 MINORITY INTEREST 0 0
5.31.00.00 NET PROFIT (LOSS) 175,829 1,737,539
5.32.00.00 Amortization of positive goodwill 0 0
5.30.00.00 PROFIT (LOSS) FOR THE YEAR 6 175,829 1,737,539
DIRECT CASH FLOW STATEMENT
2.03 CASH FLOW STATEMENT
1.00.01.30 Type of Currency: Chilean pesos
1.00.01.40 Type of Balance: Consolidated
DIRECT CASH FLOW STATEMENT NOTE No. 03-31-02 03-31-01
5.41.11.00 NET FLOW FROM OP. ACT. 7,074,847 9,822,018
5.41.11.10 Collection from sales debtors 20,240,668 20,652,444
5.31.11.20 Interests received 258,900 885,659
5.31.11.30 Dividends & other distributions funds
received 44,854 85,969
5.31.11.40 Other income 203,717 966
5.31.11.50 Payments to suppliers & personnel (-) 11,043,036 9,845,870
5.31.11.60 Interest paid (minus) 487,014 948,870
5.31.11.70 Income tax paid (minus) 825,269 777,754
5.31.11.80 Other expenses 32 81,458 111,902
5.31.11.90 V.A.T. & other taxes 1,236,515 119,085
5.41.12.00 CASH FLOW FINANCING ACTIVITIES -1,907,245 -1,436,169
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) 1,879,581 1,396,706
5.41.12.40 Capital distributions (minus) 0 0
5.41.12.45 Repayment of loans (minus) 18,766 0
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. (-) 8,898 0
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) 32 0 39,463
5.41.13.00 CASH FLOW FROM INVESTING ACTIVITIES 1,456,189 -23,708,409
5.41.13.05 Sale of fixed assets 2,562 3,371
5.41.13.10 Sale of permanent investments 0 0
5.41.13.15 Sale of other investments 4,931,553 1,258,617
5.41.13.20 Proceeds secured loans to related
Comp. 0 5,763
5.41.13.25 Proceeds other loans to related
companies 0 0
5.41.13.30 Other investment income 32 1,223,646 500,867
5.41.13.35 Incorporation of fixed assets (minus) 2,843,725 9,480,508
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) 1,517,440 15,885,388
5.41.13.55 Other loans to related companies
(minus) 3,070 91,784
5.41.13.60 Other loans to related companies
(minus) 656 2,077
5.41.13.65 Other distrib of funds on invest
activities (-) 32 336,681 17,270
5.41.00.00 TOTAL NET CASH FLOW FOR THE PERIOD 6,623,791 -15,322,560
5.42.20.00 EFFECT OF INFLATION ON CASH & CASH EQUIV. 74,522 -24,108
5.41.00.00 NET CHANGE IN & CASH EQUIVALENT 6,698,313 -15,346,668
5.42.00.00 CASH & CASH EQUI AT BEGINNING OF PERIOD 18,440,884 24,280,396
5.43.00.00 CASH & CASH EQUIV BALANCE AT END OF PERIOD 25,139,197 8,933,728
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: Chilean pesos
1.00.01.40........Type of Balance: Consolidated
CASH FLOW - INCOME STATEMENT RECONCILIATION NOTE No. 03-31-02 03-31-01
5.50.10.00 Profit (Loss) for the year 175,829 1,737,539
5.50.20.00 Profit (Loss) in sale of assets -738 -18
5.50.20.10 (Profit) Loss in sale of fixed assets -738 -18
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) 6,890,868 2,852,522
5.50.30.05 Depreciation for the year 11 2,114,814 1,714,611
5.50.30.10 Amortization of intangibles 208,725 43,098
5.50.30.15 Write-offs and provisions 807,454 349,976
5.50.30.20 Accrued earnings from investments in
related companies (minus) 14 688,901 750,085
5.50.30.25 Accured losses from investments in
related Co. 14 4,190,814 3,283,252
5.50.30.30 Negative goodwill amortization 16 41,028 116,364
5.50.30.35 Positive goodwill amortization (minus) 0 0
5.50.30.40 Price level restatement 29 170,907 -48,825
5.50.30.45 Net exchange difference 30 -25,325 -196,004
5.50.30.50 Other non-cash credits to results (minus) -7,879 1,659,865
5.50.30.55 Other non-cash debits to results 63,473 0
5.50.40.00 Changes in Assets affecting cash flow (incr)
decreases 1,971,363 2,203,685
5.50.40.10 Debtors from sales 1,218,347 2,780,209
5.50.40.20 Inventory 274,496 -393,601
5.50.40.30 Other assets 478,520 -182,923
5.50.50.00 Changes in liabilities affecting cash flow
increases (decr) -1,962,475 3,028,290
5.50.50.10 Accounts payable related to results for
the year -1,109,194 948,218
5.50.50.20 Interests payable 21,572 164,984
5.50.50.30 Income tax payable (net) -171,358 857,987
5.50.50.40 Other accounts payable related to
non-oper results -675,275 1,176,304
5.50.50.50 VAT and other taxes payable (net) -28,220 -119,203
5.50.60.00 Profit (Loss) of minority interest 0 0
5.50.00.00 NET OPERATING CASH FLOW 7,074,847 9,822,018
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 2002 and 2001.
b) Preparation basis of financial statements:
These individual financial statements as of March 31, 2002 and 2001 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 2001 fiscal year are presented updated according to
non-accounting terms as of March 31, 2002 by 2.5%.
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 2002 fiscal year, which was -0.4% (0.1% in 2001).
e) Conversion Basis
Balances in foreign currency and indexed currency units have been converted to
pesos at the indicated parities:
2001 2000
Ch$ Ch$
---- ----
U.S. Dollar 655.90 594.97
Pound Sterling 934.86 843.93
Swiss Franc 389.79 341.80
EURO 570.94 521.72
Unidad de Fomento 16,197.66 15,813.07
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,
2002.
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, 2002 and 2001
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, 2002 and 2001.
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, 2002 there are no intangibles; in the 2001 fiscal year there is a
balance for trademarks.
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 has 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, 2002 and
2001 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."
01. Accounting Changes
In the 2002 and 2001 period, there have not been any changes in the
accounting criteria that affect the individual financial statements.
02. Marketable Securities
At March 31, 2002 investments in stock are included in the amount of Th
Ch$ 3,264,180; Th Ch$ 960,793 in Mutual Funds and Th Ch$ 52,678 in interests
accrued for Bonds.
Note No. 18 provides detailed information about the Fixed Rate
Instruments classified in short and long term.
At March 31, 2001 investments in stock in the amount of Th Ch$
5,71761,878 and Th Ch$ 2,266,503 in PRC of the Central Bank have been
included. CRISTALERIAS DE CHILE S.A.
NOTE 4 -MARKETABLE SECURITIES- BALANCE COMPOSITION
Type of Security Book Value
03-31-2002 03-31-2001
---------- ----------
Stock 3,264,180 5,761,877
Bonds 52,678 0
Mutual fund shares 9,960,793 0
Investment fund shares 0 0
Public tender promissory notes 0 2,266,504
Mortgage bonds 0 0
Total Marketable Securities 13,277,651 8,028,381
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES - SHARES
Market
Number of Share Unit Market Investment Corrected
R.U.T. Company Name Shares Percentage Value Value Cost
- ------ ------------ ------ ---------- ----- ----- ----
96.512.200-1 Bodegas y Vinedos Santa 56,208,005 8.8380 92.510 5,199,803 3,264,180
Emiliana S.A.
Value Investment Portfolio 5,199,803 3,264,180
Adjustment Reserve 0
Book value, Investment Portfolio 3,264,180
03. Short-Term and Long-Term Debtors
At March 31, 2002 and 2001 there are balances of short-term debtors of Th Ch$
16,967,928 (Th Ch$ 14,551,626 in 2001).
There is also a balance of Th Ch$ 179,489 for Long-Term debtors in 2002 (Th
Ch$ 103,811 in 2001).
At March 31, 2002 and 2001 the company has established a reserve for bad debts
of Th Ch$ 128,313 in 2002 (Th Ch$ 131,521 in 2001), 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 Assets
--------------
Over 90 days Long Term
Area Up to 90 days up to 1 year Subtotal Total Assets (net) ---------
---- ------------- ------------ -------- ------------------
03-31-2002 03-31-2001 03-31-2002 03-31-2001 03-31-2002 03-31-2001 03-31-2002 03-31-2001
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Debts from Sales 12,877,021 10,656,432 1,179,892 2,125,198 14,056,913 13,928,600 12,650,109 0 0
Estimate of
non-collectable
debt 0 0 0 0 128,313 0 0 0 0
Documents
receivable 2,552,715 1,331,339 36,435 43,436 2,589,150 2,589,150 1,374,775 0 0
Estimate of bad
debtors 0 0 0 0 0 0 0 0 0
Misc. debtors 425,289 500,043 24,889 26,699 450,178 450,178 526,742 179,489 103,811
Estimate of bad
debtors 0 0
Total Long Term Debtors 179,489 103,811
04. Balances and Transactions with related entities
Balances receivable in the Short-Term as of March 31, 2002 and 2001 are
composed of Th Ch$ 2,589,243 and Th Ch$ 2,835,381. In the Long-Term a balance
is recorded of Th Ch$ 20,475,637 and Th Ch$ 2,842,463, respectively, which
correspond to Th Ch$ 18,272,755 in 2002 for the sale of Rayen Cura S.A.I.C.
stocks to the subsidiary Cristalchile Inversiones S.A., equivalent to UF
1,128,111, which are payable within a maximum term of two years as of December
28, 2001, without interests and Th Ch$ 2,202,882 in 2002 8Th Ch$ 2,842,463 in
2001), which correspond to loans granted to Red Televisiva Megavision S.A.
Detail of outstanding credits from related companies:
1) Loan to Red Televisiva Megavision S.A.
Annual Rate 7.24%, UF adjustability
05.07.2002 17,000 UF Th Ch$ 275,360
05.07.2003 17,000 UF Th Ch$ 275,360
05.07.2003 17,000 UF Th Ch$ 275,360
05.07.2004 17,000 UF Th Ch$ 275,360
05.07.2004 17,000 UF Th Ch$ 275,360
05.07.2005 17,000 UF Th Ch$ 275,360
05.07.2005 17,000 UF Th Ch$ 275,360
05.07.2006 17,000 UF Th Ch$ 275,360
05.07.2006 17,000 UF Th Ch$ 275,360
05.07.2007 17,000 UF Th Ch$ 275,362
2) Loan to Cristal Chile Comunicaciones S.A. UF adjustability
03.31.2002 838,822 UF Th Ch$ 13,587
3) There are balances for invoicing of Sales of bottles and services with the
following related companies with expiration under 90 days:
Th Ch$
------
S.A. Vina Santa Rita 1,798,759
Vina Los Vascos S.A. 176,199
Rayen Cura S.A. 137
Total 1,975,095
4) Balances Payable in the Short-Term are in the amount of Th Ch$253,472 in
2002 and Th Ch$124,945 in 200a, which correspond to purchases of various
materials.
For invoicing there are accounts payable of related companies for the
following balances with expirations under 90 days:
Th Ch$
-------
S.A. Vina Santa Rita 200,491
Ediciones Financieras S.A. 3,699
Vina Los Vascos S.A. 15,890
Envases CMF S.A. 87
-------
TOTAL 220,167
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCE AND TRANSACTIONS WITH RELATED COMPANIES
DOCUMENTS AND ACCOUNTS
PAYABLE DOCUMENTS AND ACCOUNTS RECEIVABLE
R.U.T. Company Short Term Long Term
------ ------- ---------- ---------
03-31-2002 03-31-2001 03-31-2002 03-31-2001
---------- ---------- ---------- ----------
86547900-K S.A. VINA SANTA RITA 1,798,759 1,248,319 0 0
79952350-7 RED TEL. MEGAVISION S.A. 600,561 597,928 2,202,882 2,204,341
87941700-7 VINA CARMEN S.A. 0 333,394 0 0
96721580-5 CRISTACHILE COM. S.A. 13,587 11,893 0 0
79534600-7 VINA CENTENARIA S.A. 0 4,809 0 0
83032100-4 SERV. Y CONS. HENDAYA S.A. 0 504 0 0
96826870-8 INMOBILIARIA DON ALBERTO S.A. 0 0 0 36,613
89150900-6 VINA LOS VASCOS S.A. 176,199 0 0 0
0-E RAYEN CURA S.A. I.C. 137 0 0 0
96972440-5 CRISTALCHILE INVERSIONES S.A. 0 0 18,272,755 0
96539380-3 EDICIONES FINANCIERAS S.A. 0 97 0 0
86881400-4 ENVASES CMF S.A. 0 638,437 0 601,509
TOTAL 2,589,243 2,835,381 20,475,637 2,842,463
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCES AND TRANSACTIONS WITH RELATED COMPANIES
DOCUMENTS AND ACCOUNTS PAYABLE
R.U.T. Company Short Term Long Term
------ ------- ---------- ---------
03-31-2002 03-31-2001 03-31-2002 03-31-2001
---------- ---------- ---------- ----------
86547900-K S.A. VINA SANTA RITA 200,491 76,755 0 0
89150900-6 VINA LOS VASCOS S.A. 15,890 15,674 0 0
87941700-7 VINA CARMEN S.A. 0 15,107 0 0
96608270-4 CIECSA S.A. 23,322 12,714 0 0
96539380-3 EDICIONES FINANCIEROS S.A. 3,699 3,704 0 0
90320000-6 CIA. ELECTROMETALURGICA S.A. 0 571 0 0
96972440-5 CRISTALCHILE INVERSIONES S.A. 9,983 0 0 0
86881400-4 ENVASES CMF S.A. 87 0 0 0
79534600-7 VINA CENTENARIA S.A. 0 420 0 0
TOTAL 253,472 124,945 0 0
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCES AND TRANSACTIONS WITH RELATED COMPANIES
TRANSACTIONS
03-31-2002 03-31-2001
Description Effect on Effect on
Company R.U.T. Relationship of Transaction Amount Earnings Monto Earnings
------- ------ ------------ -------------- ------ -------- ----- --------
(Debit/Credit) (Debit/
Credit)
VINA CARMEN S.A. 87941700-7 Indirect subsidiary 0 0 282,537 78,081
Indirect subsidiary 0 0 17,399 0
VINA CENTENARIA S.A. 79534600-7 Indirect subsidiary 0 0 4,076 1,126
Indirect subsidiary 0 0 357 0
SERV. Y CONS. HENDAYA S.A. 83032100-4 Controlling stockholder 170,381 0 128,070 0
Controlling stockholder 249,833 -249,833 168,294 -168,294
Controlling stockholder 4,831 4,831 5,251 5,251
CLARO Y CIA. 79753810-8 With the Chairman 5,553 -5,553 1,942 -1,942
VAPORES S.A. 90160000-7 Indirect affiliate 12,265 0 218,574 0
VINA LOS VASCOS S.A. 89150900-6 Indirect affiliate 165,933 43,230 86,953 24,030
Indirect affiliate 11,770 0 19,706 0
EDICIONES FINANCIERAS S.A. 96793770-3 Indirect affiliate 3,135 -3,135 3,212 -3,212
QUEMCHI S.A. 96640360-8 Indirect affiliate 2,435 2,435 2,428 2,428
Indirect affiliate 0 0 51,250 0
Indirect affiliate 0 0 51,250 0
Indirect affiliate 0 0 156 156
CRISTALCHILE COMUNICACIONES 96721580-5 Subsidiary 0 0 3,313 0
Subsidiary 0 0 116 116
Subsidiary 49 -49 23 23
BAYONA S.A. 86755600-1 Controlling stockholder 177,376 0 133,328 0
INMOBILIARIA DON ALBERTO 96826870-8 Affiliate 0 0 99 99
NAVARINO S.A. 96566900-0 Indirect affiliate 2,435 2,435 2,428 2,428
CIA. ELECTROMETALURGICA S.A. 90320000-6 Controlling stockholder 653,400 0 491,139 0
Controlling stockholder 0 0 1,051 0
CIECSA S.A. 96608270-4 Subsidiary 0 0 103,322 0
Subsidiary 149 149 51 -51
S.A. VINA SANTA RITA 86547900-K Subsidiary 1,524,381 397,143 1,005,456 277,867
Subsidiary 0 0 1,298 1,298
Subsidiary 0 0 1,857 1,857
Subsidiary 190,535 -164 98,353 -754
RED TELEVISIVA MEGAVISION 79952350-7 Indirect affiliate 49,840 49,840 46,843 46,843
S.A. Indirect affiliate 11,050 -11,050 7,519 7,519
ENVASES CMF S.A. 86881400-4 Affiliate 0 0 20,270 20,270
Affiliate 0 0 3,327 3,327
Affiliate 74 -74 0 0
RAYEN CURA S.A.I.C. 0-E Affiliate 0 0 14,543 4,728
05. 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:
2002 Th Ch$ 2001 Th Ch$
----------- -----------
Finished Products 2,494,731 3,878,019
Raw Materials and Fuel 1,991,688 1,287,276
Materials and spare parts to be consumed 1,216,761 1,085,981
Materials in transit 347,432 533,348
--------- ---------
TOTAL 6,050,612 6,784,624
06. 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% of First Cateogry
Income Tax in 2002 and 15% in 2001, and 35% as single tax under Art.
21, for the 2001 and 2000 fiscal years.
Credits against taxes are shown deducting the payable obligation.
The itemized list is the following:
2002 2001
Th Ch$ Th Ch$
------ ------
Fiscal year income tax reserve (664,308) (674,225)
Single tax reserve (3,290) (3,315)
--------- ---------
SUBTOTAL (667,598) (677,540)
Credits:
Monthly reserve payments 840,868 856,115
Training expenditures 0 4,755
Credit from donations 0 1,575
Recoverable VAT 0 1,166,120
--------- ---------
CREDIT SUBTOTAL 840,868 2,028,565
INCOME TAX TOTAL
Taxes to be Recovered
VAT Tax Credit previous fiscal yr 1,163,207 303,443
--------- ---------
TOTAL TAXES TO BE RECOVERED 1,336,477 1,654,468
C) TAXABLE PROFIT FUND
The company showed taxable profits to be distributed:
Generated as of 12.31.1983: 2001 Thou Ch$ 2000 Thou Ch$
------------- -------------
Profit adjustment 1,839,146 1,894,588
Generated since 01.01.1984:
Without Credit 2,575,869 153,292
With 10% First Category Credit 79,070 510,143
With 15% First Category Credit 97,171,878 92,601,264
With 15% Additional Rate Credit 713 713
With 16% First Category Credit 3,552,709 0
----------- ----------
SUBTOTAL TAX PROFITS 103,380,239 93,265,414
Non-income revenues 6,572,216 6,570,755
TOTAL EARNINGS 109,952,455 99,836,169
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
2002 2001
M$ M$
---- ----
Year's income tax reserve -664,308 -674,225
Reserve corporate tax -3290 -3315
--------- ---------
Sub Total -667,598 -677,540
Credits:
Monthly social security payments 840,868 856,115
Training expenditures 0 4,755
Donations 0 1,575
Prepayment gains tax 0 1,166,120
--------- ---------
Sub Total Credits 840,868 2,028,565
Income tax to be recovered
Income credit, previous year 1,163,207 303,443
--------- ---------
Total taxes to be recovered 1,336,477 1,654,468
--------- ---------
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
DEFERRED TAXES
03-31-2002 03-31-2001
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 20,530 0 0 0 19,728 0 0 0
Expected revenue 0 0 0 0 0 0 0 0
Vacation reserve 34,759 0 0 0 36,685 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 0 0 4,091,264 0 0 0 3,168,235
Severance 1,724 32,759 0 0 1,360 25,842 0 0
Other events 0 94,947 0 0 0 81,523 0 0
Packaging reserve 212,756 0 0 0 178,658 0 0 0
Machinery repair reserve 163,775 0 0 0 51,198 0 0 0
Furnace repair reserve 178,405 544,631 0 0 0 869,183 0 0
Spare parts obsolescence
reserve 93,445 0 0 0 20,562 0 0 0
Refractories obsolescence
reserve 6,335 0 0 0 5,914 0 0 0
Deferred customs duties 24,736 0 0 0 0 0 0 0
Unrealized profit, building
sale 0 1,554 0 0 0 16,448 0 0
Accumulated depreciation
automobiles 0 5,568 0 0 0 5,565 0 0
Fixed asset, molds 0 0 0 262,410 0 0 0 141,778
OTHERS
Complementary accounts-net
amortization 15,736 131,141 0 2,699,536 88,785 356,199 0 2,748,194
Valuation reserve 0 0 0 0
Total 720,729 548,318 0 1,654,138 225,320 642,362 0 561,819
---------- --------- ---------- --------- ---------- --------- ---------- ---------
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
INCOME TAX
ITEM 03-31-2002 03-31-2001
Current tax costs (tax reserve) -664,308 -677,539
Adjustment tax cost (previous year) 0 0
Effect on assets or liabilities from
deferred tax of fiscal year -116,741 8,818
Tax benefit from tax losses 0 0
Effect of amortization of complementary
accounts of deferred assets and liabilities -37,535 16,611
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 -818,584 -652,110
07. Short-term and long-term leasing contracts and leasing assets
(note required only for leasing companies defined in circular No. 939 of 1990).
There are no elements for this item.
08. Other current assets
As of March 31, 2002, investments in financial instruments with resale
agreements, valued as stated in note 2 p) for Th Ch$2,042,359 are included
under this heading.
In March 2001 there was a balance of Th Ch$3,327,371 for investments in
Financial Institutions with resale agreement, and a balance of Th Ch$1,902,329
for Future Contracts.
09. 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 WITH PURCHASE COMMITMENT, SALE COMMITMENT,
BUY BACK AND RESELL BACK AGREEMENTS FOR NEGOTIABLE SECURITIES PURCHASE (CV)
AND SALE (CV) OPERATIONS
Dates
--------------- Original Price Market
Code Start End Counterpart Currency Set Rate Final Value Document ID Value
- ---- ----- --- ----------- -------- --- ---- ----------- ----------- -----
CV 03.25.2002 04.01.2002 BANCO DE CREDITO E Pesos 1,265,000 0.39 1,266,151 Zero Central Bank 1,265,987
INVERSIONES
CV 03.27.2002 04.01.2002 BANCHILE Pesos 776,000 0.36 776,466 PRC & Others 776,372
10. Fixed Assets
Fixed Assets:
The Fixed Assets are shown at purchase cost plus the legal and regulatory
revaluations accumulated as of March 31, 2002 and 2001.
The items that make up the Company's fixed assets as of March 31, 2002 and
2001 include mainly Land, Industrial Constructions, Infrastructure Works,
Machinery, and Equipment.
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$2,114,814 in 2002 and Th
Ch$1,714,611 in 2001.
The detail is shown on an attached chart.
NET ASSETS
2002 2001
Th Ch$ Th Ch$
------ ------
LAND
Land & mining claims 1,440,857 1,815,934
Subtotal land 1,440,857 1,815,934
Depreciation Mining Claims
Accrued
For the fiscal year
Subtotal dep. 0 0
*Subtotal land 1,440,857 1,815,934
CONSTRUCTIONS & INFRASTRUCTURE
High rises and industrial const. 12,305,503 10,938,850
Facilities 4,520,524 4,480,921
Housing developments 25,097 25,077
* 16,850,624 15,444,848
MACHINERY & EQUIPMENT
Furnaces 36,187,904 29,012,154
Machinery 51,596,512 41,108,327
Tools 341,626 340,995
Furniture and Materials 1,642,333 1,548,900
Vehicles 201,615 195,018
* 89,969,990 72,205,393
DEPRECIATION
Accrued -38,393,354 -36,729,011
For the fiscal year -1,872,205 -1,453,121
Subtotal depreciation -40,265,559 -38,182,132
Subtotal machinery & equip 49,704,431 34,023,262
OTHER FIXED ASSETS
Spare parts 4,543,559 4,732,651
Imports in transit 1,224,006 11,488,410
Works underway 2,279,114 7,521,339
Lots in Pirque and Leyda 454,776 454,399
Other 368,654 388,009
Subtotal other assets 8,870,109 24,584,808
TOTAL FIXED ASSETS 117,131,580 114,050,983
TOTAL ACCRUED DEPREC. -45,345,588 -43,031,745
TOTAL DEPREC FOR YEAR -2,071,245 -1,632,413
TOTAL NET FIXED ASSETS 69,714,747 69,386,826
TECHNICAL REVALUATION AND ADJUSTMENT OF ACCOUNTING VALUES
2002 2001
Th Ch$ Th Ch$
------ ------
LAND
Land 299,376 298,976
DEPRECIATION
Accrued prior fiscal years 0
Subtotal land and mining claims net 299,376 298,976
CONSTRUCTIONS & INFRASTRUCTURE
High rises and industrial constructions 5,986,133 5,981,045
Facilities 424,633 439,694
Subtotal Constructions 6,410,766 6,420,739
DEPRECIATION
Accrued prior fiscal years -4,830,803 -4,642,677
For the fiscal year -49,925 -49,884
Subtotal depreciations -4,880,728 -4,692,561
Subtotal constuctions net 1,530,038 1,728,179
MACHINERY AND EQUIPMENT
Furnaces 506,774 1,706,777
Machinery 970,022 1,737,964
Tools 52,341 52,298
Furniture and materials 13,906 13,895
Subtotal machinery & equipment 1,543,043 3,500,934
DEPRECIATION
Accrued prior fiscal years -1,543,043 -3,371,671
For the fiscal year -32,315
Subtotal depreciation -1,543,043 -3,403,986
Subtotal machinery & equip 0 96,948
Total Net Technical Revaluation 1,829,414 2,124,102
TOTAL 8,253,185 10,200,649
TOTAL ACCRUED DEPREC. -6,373,846 -8,014,348
TOTAL DEPREC FOR YEAR -49,925 -82,199
1,829,414 2,124,102
11. Sales transactions with leaseback
These type of transactions were not carried out as of March 31, 2002 and 2001.
12. 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 company
capital in the equivalent to UF 359,921 by issuing 343,750,000 shares that
were fully subscribed by Cristalchile. Of such subscription, the company has
paid 288,250,000 shares for an amount of UF 301,093.05 totaling a stake of
98.12% in the subsidiary.
ENVASES CMF S.A.
On June 29, 2001 a Special Stockholders Meeting of Crowpla Reicolite S.A. was
held where agreement was reached to increase the company's capital to Th
Ch$26,220,314,772 divided into 56,000 shares, by capitalizing Th Ch$1,755,219
from the Revaluation and Retained Earnings Fund, with the issue of 29,000 cash
shares equivalent to Th Ch$ 15,648,300.
Andina Inversiones Societarias S:A. subscribed and paid for 28,000 shares of
this issue, worth Th Ch$ 15,149,749.
Cristalerias de Chile S.A. subscribed and paid for 1,000 shares worth Th Ch$
498,552.
With the operations referred to above, the shareholding of Cristalerias de
Chile S.A. totals 28,000 shares, representing 50% of the equity of
Crowpla-Reicolite S.A.
The reduction in the percentage of Cristalchile's share in the equity of
Crowpla Reicolite S.A. as of June 30, 2001 produced a positive variation in
the calculation of the VPP of Th Ch$ 1,989,949 adjusted, which is included in
Other Non-Operating Income.
Subsequently the company's name was modified to Envases CMF S.A.
CRISTALCHILE INVERSIONES S.A.
This company was created on December 11, 2001 with the participation of
Cristalerias de Chile S.A., which holds a 99.99% stake and the subsidiary
CIECSA S.A. with a 0.01% stake.
On December 28, 2001, the company sold to its subsidiary Cristalchile
Inversiones S.A., the investment it had in Rayen Cura S.A.I.C., a company
established in the city of Mendoza, Argentina in Th Ch$18,340,577. The
operation had no effect on results.
According to the provisions in Circular Letter 81 of the SVS dated 01/22/02,
the subsidiary adjusted the financial statements of Rayen Cura S.A.I.C. as of
December 31, 2001, considering a rate of exchange of 1.7 Argentine pesos per
US dollar, although no devaluation of the Argentine pesos with respect to the
dollar was recorded in the accounts in Argentina.
As of March 31, 2002, the financial statements of Rayen Cura S.A.I.C. has
acknowledged an exchange rate of 2.9 Argentine pesos per US dollar. On its
part the subsidiary Cristalchile Inversiones S.A., has adjusted the financial
statements of Rayen Cura S.A.I.C. in order to acknowledge the devaluation from
$1.7 to $2.9 per dollar.
The accounting charge against results, as a consequence of the devaluation of
the Argentine peso totaled Th Ch$1,709,343 as of March 31, 2002..
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 03-31-2002 03-31-2001 03-31-2002 03-31-2001
------ ------- ------ -------- ------ ---------- ---------- ---------- ----------
Cristalchile
96721580-5 Comunicaciones S.A. Chile Peso 101,213,160 99.9980 99.9900 75,946,786 82,856,193
S.A. Vina Santa
86547900-K Rita S.A. Chile Peso 493,959,797 54.0970 56.0600 71,021,718 65,559,028
86881400-4 Envases CMF S.A. Chile Peso 28,000 50.0000 99.9900 28,793,387 10,992,436
0-E Rayen Cura S.A. Argentina Dollar 0 0.0000 40.0000 0 27,632,061
966088270-4 Ciecsa S.A. Chile Peso 597,401,305 98.2105 96.6000 9,778,108 8,506,712
Inmobiliaria Don
96826870-8 Alberto S.A. Chile Peso 3,817 38.1700 38.1700 1,296 413,386
Constructora
96767580-6 Apoger S.A. Chile Peso 800,000 80.0000 80.0000 47,679 1,167,740
Inmobiliaira
96628620-2 Richelieu S.A. Chile Peso 70 0.0000 7.0000 0 19,561
Cristalchile
96972440-5 Inversiones S.A. Chile Peso 9,999 99.99 0.0000 -1,378,726 0
TOTAL
Net Result of Income not Book value
Income Accrual VPP Realized of Investment
R.U.T. 03-31-2002 03-31-2001 03-31-2002 03-31-2001 03-31-2002 03-31-2001 03-31-2002 03-31-2001 03-31-2002 03-31-2001
------ ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
96721580-5 -2,391,329 -2,417,262 -2,391,282 -2,417,214 75,945,267 82,854,555 0 0 75,945,267 82,854,555
86547900-K 1,016,538 963,805 549,916 521,390 38,420,619 35,465,474 0 0 38,420,619 35,465,474
86881400-4 277,969 146,311 138,984 145,263 14,396,694 10,990,814 0 0 14,396,694 10,990,814
0-E 0 208,567 0 0 0 11,052,824 0 0 0 11,052,824
966088270-4 -251,541 -874,907 -247,041 -858,584 9,603,129 8,347,576 -267,800 -299,136 9,335,329 8,048,440
96826870-8 -1,526 -7,512 -583 -2,868 495 157,790 0 0 495 157,790
96767580-6 -504 -5,733 -403 -4,586 38,143 934,192 0 0 38,143 934,192
96628620-2 0 59 0 5 0 1,369 0 0 0 1,369
96972440-5 -1,551,660 0 -1,551,505 0 0 0 0 0
138,404,347 149,804,594 -267,800 -299,136 138,136,547 149,505,458
13. Investments in other companies
14. At March 31, 2002 and 2001 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, 2002 totaled Th Ch$ 2,099,226 (Th
Ch$7,502,048 in 2001).
CRISTALERIAS DE CHILE S.A.
NOTE 16 - SHORTFALL AND GOODWILL ON INVESTMENTS
03-31-2002 03-31-2001
---------- ----------
Amount Amortiz. Shortfall Amount Amortiz. Shortfall
R.U.T. Company Name this period Value this period Value
------ ------------ ----------- ----- ----------- -----
96608270-4 Ciecsa S.A. 29,018 1,479,924 28,994 1,594,673
86881400-4 Envases CMF S.A. 0 0 6,624 125,856
0-E Rayen Cura S.A. 0 0 69,132 5,114,344
86547900-K S.A. Vina Santa Rita 12,010 619,302 11,614 667,175
TOTAL 41,028 2,099,226 116,364 7,502,048
15. Intangibles
At March 31, 2002 there are no values for these items, in March 2001 there is
a value of Th Ch$ 2,600 corresponding to a trademark.
16. Other (Assets)
As of March 31, 2002, the following is included in Other Long-term Assets:
1. The sum of Th Ch$9,059,690 for sale of Bonds of Celulosa Arauco equivalent
to US$13,420,000, at a rate of 6.95% annual with maturity on September 15,
2005. This value includes the amount of Th Ch$ 257,512 for the premium paid
for their purchase, which will be amortized in the Bond's same term.
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, therefore
no negative adjustment has been made to the market value which at March 31,
2002 totals Th Ch$130,625.
2. In addition the amount of Th Ch$200,624 for prepaid interests of Deferred
Custom duties in included.
As of March 31, 2001, there was a balance of Th Ch$133,094 for a difference in
favor of Cristalerias de Chile S.A., in future contracts in foreign currency
with long-term maturity.
17. Short-term liabilities with banks and financial institutions
a) Short-term liabilities with Banks and Financial Institutions (5.21.10.10).
As of March 31, 2002 and 2001, 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
Other Foreign
R.U.T. Bank or Financial Dollars Euros Yen Currencies U.F.
Institution 03-31-2002 03-31-2001 03-31- 03-31- 03-31- 03-31- 03-31- 03-31- 03-31- 03-31-
2002 2001 2002 2001 2002 2001 2002 2001
Short term (code: 5.21.10.10)
Long Term - Short Term (code: 5.21.10.20)
97036000-K Banco Santiago 0 35,655 0 0 0 0 0 0 0 0
0-E J.P Morgan Chase Bank 18,838,385 164,320 0 0 0 0 0 0 0 0
Others 0 0 0 0 0 0 0 0 0 0
TOTAL 18,838,385 199,975 0 0 0 0 0 0 0 0
Capital amount due 18,740,000 199,975 0 0 0 0 0 0 0 0
Average annual interest
rate 3.375 7.47 0 0 0 0 0 0 0 0
Percentage oblig. foreign curr. (%) 100.0000
Percentage oblig. foreign curr. (%) 0.0000
$ Non adjustable Total
03-31-2002 03-31-2001 03-31-2002 03-31-2001
0 0 0 35,655
0 0 18,838,385 164,320
0 0 0 0
0 0 18,838,385 199,975
0 0 18,740,000 199,975
0 0 0 0
18. Other Current Liabilities
As of March 31, 2002 there is a balance of Th Ch$ 3,518,931 in Other Current
Liabilities as detailed in note 34.
19. Long term liabilities with banks and financial institutions
The obligations with banks and financial institutions are presented on the
charts attached.
CRITALERIAS DE CHILE S.A.
NOTE 21: LONG-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS
Institution Maturity Years Closing date Closing date
Current period Previous period
Bank or Adjustment From 1 From 2 From 3 From 5 More than 10 years Total Long-Term Average Total Long-Term
R.U.T. Financial index to 2 to 3 to 5 to 10 Amount Term at closing of annual at closing of
Institution currency Financial interest Financial
M$ M$ M$ M$ M$ Statements rate Statements
0-E Chase Manhattan Bank Dollars 18,740,000 18,740,000 9,370,000 0 0 2,005 46,850,000 3.375% 60,984,425
Euros - - - - - - - - -
Yen - - - - - - - - -
UF - - - - - - - - -
Non-adj.CH$ - - - - - - - - -
Others - - - - - - - - -
Total 18,740,000 18,740,000 9,370,000 - - - 46,850,000 60,984,425
Porcentaje de obligaciones en moneda extranjera 100.00%
Porcentaje de obligaciones en moneda nacional 0.00%
20. Short-term and long-term obligations with the public
(promissory notes and bonds)
21. As of March 31, 2002 and 2001, there are no obligations with the public.
21. Reserves and Write-offs
Reserves:
As of March 31, 2002, the Company has short-term reserves of Th
Ch$6,445,196 and Th Ch$3,426,900 in 2001.
In the Long-term, reserves are recorded of Th Ch$6,902,679 and Th Ch$8,570,244
respectively.
Bad Debt Reserves:
The Company has established a reserve for bad debts of Th Ch$128,313, and Th
Ch$ 131,521, respectively, as of March 31, 2002 and 2001.
This reserve is deducted from the balance of debtors from sales.
No charges have been made against the reserve in the 2002 and 2001 fiscal
years.
Vacation Reserve:
The company has established a reserve for the total cost of vacations pending
as of March 31, 2002 and 2001, as established in Technical Bulletin No. 47 of
the Accountants Association of Chile. The net balance for this item is Th Ch$
220,955 as of March 31, 2002 (Th Ch$ 244,564 in 2001).
Reserve for Furnace Reconstruction:
This reserve is established throughout the useful lives of the refractories of
each smelting furnace so their repair will not have a distorting effect on the
results for the fiscal year in which the repairs are made.
The Company has established a reserve for this item in the amount of Th
Ch$4,413,876 and Th Ch$5,665,415 as of March 31, 2002 and 2001, respectively.
An itemized list of the amounts provided is shown in the attached chart.
Other Reserves:
A reserve is recorded in the amount of Th Ch$176,523 (Th Ch$176,510 in
2001) for the obsolescence of refractory bricks and spare parts, which is
deducted from the relevant assets.
Cristalerias de Chile S.A.
Note Reserves and Write-offs 03/31/2002 03/31/2001
Individual
Board Share 7,033 69,501
Board Share Prior Fiscal Year 710,824 698,732
Legal Bonus (27,833) (23,123)
Provision Indirect Cost 218,291 203,341
Furnace Reconstruction 1,115,030 587,991
Machinery Repair 1,007,849 341,317
Severance Pay 138,656 155,228
Packing for Client Return 1,142,646 1,135,682
Legal Holiday 220,955 244,564
Reserve Spare Parts 446,387 0
Reserve Subsidiary Losses 1,378,588 0
Other Reserves 86,770 13,667
Short Term 6,445,196 3,426,900
Severance Pay 3,603,833 3,492,821
Furnace Reconstruction 3,298,846 5,077,423
Long-Term 6,902,679 8,570,244
22. Severance Payments
The reserve for severance payments to personnel is included at its current
value, as expressed in note 2 r). In 2002 it totals Th Ch$3,742,489
(Th$3,648,049 in 2001)
As of March 31, 2002, the parent company has paid severance payments of Th
Ch$20,941 chargeable against the reserve. In the 2001 Fiscal Year no charges
have been made for this item.
23. Other long-term liabilities
As of March 31, 2002 and 2001 there are no balances for this item.
24. Minority interest
Not applicable to individual financial statements.
25. Changes in equity
a. Activity in 2002 and 2001
The activity of the capital and reserve accounts in the fiscal years
ended in March 31, 2002 and 2001, are shown in the attached charts.
The detail of this item is as follows:
2002 2001
Th Ch$ Th Ch$
Future capital increases 4,095,904 3,770,068
Reserve for adjustment of value of fixed assets 1,829,414 2,150,340
Adjustment for conversion difference in
investment in Rayen Cura S.A.I.C. 2,293,616 1,178,189
Difference VPP Sodex (208,960) (208,787)
------------ -----------
TOTAL OTHER RESERVES 8,009,974 6,889,810
Accumulated Deficit for the Development Period
The negative variation in equity experimented by the company results from the
application of the VPP method carried out by CIECSA S.A. in its subsidiary
Simetral S.A., which was in a stage of development until December 31, 2001,
and its expenditures correspond to pre-operating activities. In accordance
with provisions in Circular Letter 981 of the Insurance and Securities
Commission, this deficit is treated as an accumulated loss.
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NET WORTH
Reserve Premium Reserve Devel. Fiscal
Paid-in capital in sale of Other Future Accumulated Provisional Period Year
Capital revaluation shares Reserves Dividends Results Dividends Deficit Result
Balances as of 03-31-2002
Initial balance 62,863,356 0 26,794,558 7,942,919 102,798,113 0 0 (123,129) 0
Distribution result previous
fiscal year 0 0 0 0 0 17,770,611 0 0 0
Final dividend previous fiscal
year 0 0 0 0 0 (4,657,728) 0 0 0
Capital increases with cash
stock issue 0 0 0 0 0 0 0 0 0
Reserves and/or Profits
Capitalization 0 0 0 0 0 0 0 0 0
Development period Accumulated
deficit 0 0 0 0 0 0 0 0 0
Accumulated conversion
difference adjustment 0 0 0 98,828 0 0 0 0 0
Eventual Dividend 0 0 0 0 0 0 0 0 0
Owner's equity Revaluation 0 (251,453) (107,180) (31,773) (411,190) (52,451) 0 493 0
Fiscal Year Result 0 0 0 0 0 0 0 0 175,829
Provisional Dividends 0 0 0 0 0 0 0 0 0
Final balances 62,863,356 (251,453) 26,687,378 8,009,974 102,386,923 13,060,432 0 (122,636) 175,829
Balances as of 03-31-2001
Initial balance 60,973,187 0 25,998,901 6,166,094 91,287,846 0 0 (107,536) 0
Distribution result previous
fiscal year 0 0 0 0 0 17,042,239 0 0 0
Final dividend previous fiscal
year 0 0 0 0 0 (4,156,672) 0 0 0
Capital increases with cash
stock issue 0 0 0 0 0 0 0 0 0
Reserves and/or profit
Capitalization 0 0 0 0 0 0 0 0 0
Development period accumulated
deficit 0 0 0 0 0 0 0 (55,488) 0
Accumulated conversion difference
adjustment 0 0 0 549,506 0 0 0 0 0
Eventual Dividend 0 0 0 0 0 0 0 0 0
Owner's equity revaluation 0 60,973 25,988 6,166 91,288 12,885 0 (108) 0
Fiscal Year Result 0 0 0 0 0 0 0 0 1,695,160
Provisional Dividends 0 0 0 0 0 0 0 0 0
Final balances 60,973,187 60,973 26,024,889 6,721,766 91,379,134 12,898,452 0 (163,132) 1,695,160
Updated balances as of 3/31/01 62,497,517 62,496 26,665,262 6,889,810 93,663,612 13,220,914 0 (167,210) 1,737,539
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NETWORTH - DEFICIT ACCUMULATED IN DEVELOPMENT PERIOD OF
SUBSIDIARY
AMOUNT
RUT COMPANY FISCAL YEAR ACCUMULATED COMMENTS
- ------------ --------------- ----------- ----------- ---------------------
96.939.140-6 SIMETRAL S.A. 122,636 122,636 IN DEVELOPMENT PERIOD
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN EQUITY - NUMBER OF SHARES
No.
No. No. SHARES
SHARES SHARES WITH VOTING
SERIES SUBSCRIBED PAID RIGHT
- ------------------- ------------ ---------- -------------
SINGLE 64,000,000 64,000,000 64,000,000
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NETWORTH - CAPITAL (AMOUNT - TH CH$)
SUBSCRIBED PAID-IN
SERIES CAPITAL CAPITAL
- ---------------------------------------- ------------- ------------
SINGLE 62,863,356 62,863,356
26. Other Non-operating Income and Disbursements
As of March 2002 non-operating income totaled Th Ch$92,445 in 2002 and Th Ch$
86,272 in 2001.
Non-operating disbursements amounted to Th Ch$147,534 in 2002 and Th Ch$82,501
in 2001.
NOTE 28: NON-OPERATING INCOME AND EXPENSES
INDIVIDUAL
2002 2001
-------- --------
Thou Ch$ Thou Ch$
Material Sales 6,789 6,515
Lease of Offices and Business Premises 53,793 69,027
Miscellaneous Income 23,984 2,860
Amortization of Unrealized Income 7,879 7,872
Total Non-Operating Income 92,445 86,273
Professional advisory services 155,068 76,427
Insurance 3,874 2,607
Other expenses -11,408 3,467
Total Non-Operating Expenses 147,534 82,501
27. 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 2002 and 2001 fiscal year
of Th Ch$84,355 and Th Ch$92,445, respectively.
CRISTALERIAS DE CHILE S.A.
NOTE 29: ADJUSTMENT FOR PRICE LEVEL RESTATEMENTS
Adjustability
Assets (Debits)/Credits Index 03-31-2002 03-31-2001
------------- ------------- -----------
Inventory IPC (61,846) 19,763
Fixed Asset IPC (283,991) 53,585
Investments in Related Companies IPC (571,391) 12,826
Marketable Securities IPC (13,078) 11,919
Time Deposits IPC -- 4,115
Short Term Debtors IPC (640) 205
Accounts Receivable Related Companies IPC (84,426) 3,212
Long-Term Debtors IPC (243) 367
Other Non-Monetary Assets IPC (1,964) 174,128
Expense and Cost Accounts IPC (2,901) (8,315)
Total (Debits)/Credits (1,020,480) 271,805
Liabilities (Debits)/Credits
Net Worth IPC 853,555 (202,124)
Short-Term Bank Loans IPC 74,853 --
Accounts Receivable Related Companies IPC 149 51
Short-Term Reserves IPC (4,500) (5,245)
Long-Term Bank Loans IPC 187,083 --
Long-Term Creditors IPC 231 (163)
Long-Term Reserves IPC (15,684) (28,681)
Non-Monetary Liabilities IPC 4,193 --
Income Accounts IPC 4,975 13,182
Total (Debits)/Credits 1,104,855 (222,980)
(Loss) Profit From Adjustment For Price Level Restatement 84,355 48,825
28. Difference in Exchange
A net charge against results was made because of exchange rate difference of
Th Ch$236,591 in 2002 and a net credit of Th Ch$196,004 in 2001.
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 on the table attached.
CRISTALERIAS DE CHILE S.A.
NOTE 30: EXCHANGE DIFFERENCES
Item Amount
------------------------------
Currency 03-31-2002 03-31-2001
-------- ---------- ----------
Current Assets Dollars 429 3,678
Time Deposits Dollars (10,093) 604,296
Inventory Dollars (12,361) 90,560
Other Assets Dollars 9,508 517,440
Total (Debits) Credits (12,517) 1,215,974
Short-Term Bank Loans Dollars (106,547) (1,254)
Notes Payable Dollars (48,153) (540,257)
Notes Payable Other Currency 5,193 (8,002)
Sundry Debtors - Long Term Dollars -- (2,157)
Long-Term Bank Loans Dollars (66,170) (331,576)
Short-Term Reserves Dollars (1,887) --
Long-Term Reserves Dollars (4,601) (136,724)
Sundry Creditors - Long Term Dollars (1,909) --
Total (Debits) Credits (224,074) (1,019,970)
(Loss) Profit From Exchange Difference (236,591) 196,004
29. Extraordinary Items
As of March 31, 2001, a partial reversion of the reserve for the repair of
Furnace C was acknowledged in the amount of Th Ch$975,800, net of taxes.
As of March 31, 2002, there are no transactions for this item.
30. Expenses incurred in the sale of shares and debt instruments
As of March 31, 2002 and 2001, there are no expenses recorded in this item.
31. Cash Flow Statement
An itemized list is included in the attached chart.
CRISTALERIAS DE CHILE S.A.
CASH FLOW STATEMENT
1. The following it the detail of the item: OTHERS:
2002 2001
-------- --------
Th Ch$ Th Ch$
541.11.80 Other expenses paid
Exchange difference 62,527 93,250
Donations 18,853 11,174
Other expenses 73 7,478
Total 81,458 111,902
541.13.15 Sale of other investments
LP bond share 174,681 -
Sale of PRC - 1,258,617
Redemption Time Dep. over 90 days 4,756,872 -
Total 4,931,553 1,258,617
541.13.30 Other investment income
Maturity of future contracts 1,223,646 500,867
541.13.65 Other investment made
Purchase of shares - 17,270
Future contracts 336,681 -
Total 336,681 17,270
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 149 (4,230,400) April-02
Amounts payable investment (576,123) April-02
Amounts payable investment (271,857) May-June 02
TOTAL (5,078,380)
32. Derivative Contracts
FUTURE CONTRACTS IN FOREIGN CURRENCY
The parent company has signed future contracts in foreign currency of Th US$
119,600 in 2002 (Th US$ 114,600 in 2001) 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, 2002 there was a difference in favor of the financial
institutions of Th Ch$3,518,931, which is presented in Other Current
Liabilities.
As of March 31, 2001 there was a difference in favor of the company of Th
Ch$1,902,329, which is presented in Other Current Assets.
CRISTALERIAS DE CHILE S.A.
NOTE 34: DERIVATIVE CONTRACTS
Description Of Contracts Accounts Affected
------------------------------------ ----------------------------------------
Protected Item Or
Transaction Assets/Liabilities Effect on Result
Maturity Or Purchase/ ------------------ Value Of ------------------ ------------------
Type Of Type Of Value Of Expiration Specific Sale Protected Not
Derivative Contract Contract Date Item Position Name Amount Item Name Amount Realized Realized
- ---------- -------- -------- ---- ---- -------- ---- ------ ---- ---- ------ -------- --------
SECOND EXCHANGE DOLLAR
FR CI 1,758,214 2002 RATE C LOAN 1,758,214 1,967,700 ASSETS 209,486 209,486 0
THIRD EXCHANGE DOLLAR
FR CI 40,196,632 2002 RATE C LOAN 40,196,632 38,042,200 LIABILITIES 2,154,432 -2,154,432 0
FOURTH EXCHANGE DOLLAR
FR CI 22,656,047 2002 RATE C LOAN 22,656,047 21,412,930 LIABILITIES 1,243,117 -1,243,117 0
FIRST EXCHANGE DOLLAR
FR CI 16,106,396 2003 RATE C LOAN 16,106,396 16,397,500 LIABILITIES 304,703 -304,703 0
SECOND EXCHANGE DOLLAR
FR CI 2,649,764 2003 RATE C LOAN 2,649,764 2,623,600 LIABILITIES 26,164 -26,164 0
CRISTALERIAS DE CHILE S.A.
Foreign Currency Forward Contracts Analysis as of 03.31.2002
Date Future Value Future Value Profit
------------------------ ------------ ------------ ------
Institution Investment Expiry UF US$ Thou Ch$
Banco de Chile 03.26.2002 03.19.2003 205,069 5,000,000 (72,717)
Banco de Chile 03.26.2002 03.19.2003 204,905 5,000,000 (72,680)
BCI 03.26.2002 03.26.2003 204,864 5,000,000 (72,680)
Banco Santander 03.13.2002 04.08.2003 162,826 4,000,000 (26,164)
Citibank 02.28.2001 05.15.2002 108,668 3,000,000 209,486
Deutsche Bank
(Chile) S.A. 03.28.2001 03.28.2003 373,500 10,000,000 509,179
Minus: Credit
09.26.2001
Deutsche (932,486)
Plus: Debit
03.27.2002 336,680
Deutsche Bank
(Chile) S.A. 07.20.2001 07.22.2002 413,114 10,000,000 (147,933)
Banco Boston 09.12.2001 09.11.2002 170,926 4,000,000 (147,534)
Banco Boston 09.13.2001 09.12.2002 213,486 5,000,000 (166,205)
Banco A. Edwards 09.06.2001 09.05.2002 208,768 5,000,000 (95,257)
Banco A. Edwards 09.28.2001 09.27.2002 174,155 4,000,000 (189,034)
Banco Santander 09.27.2001 09.26.2002 174,180 4,000,000 (187,003)
Banco Santander 09.27.2001 09.26.2002 174,146 4,000,000 (186,716)
Banco Santander 09.27.2001 09.26.2002 217,595 5,000,000 (232,675)
Banco Santander 10.02.2001 10.01.2002 264,788 6,000,000 (335,926)
Banco Santander 10.03.2001 10.03.2002 219,070 5,000,000 (243,618)
Banco Santiago 09.21.2001 09.24.2002 217,396 5,000,000 (228,928)
Chase Manhattan Bank 09.20.2001 09.23.2002 217,911 5,000,000 (236,463)
Banco A. Edwards 10.01.2001 09.30.2002 87,128 2,000,000 (93,066)
Banco A. Edwards 10.02.2001 10.02.2002 261,238 6,000,000 (279,641)
Banco A. Edwards 10.10.2001 10.09.2002 179,011 4,000,000 (258,383)
Banco A. Edwards 10.16.2001 10.16.2002 88,522 2,000,000 (113,425)
JP Morgan Chase 11.27.2001 12.04.2002 209,880 5,000,000 (85,926)
JP Morgan Chase 11.28.2001 12.11.2002 280,177 6,600,000 (120,617)
Banco Santiago (US$/EURO) 12.19.2001 12.18.2002 3,121,650 3,500,000 (49,200)
TOTAL 123,100,000 (3,518,932)
35. Contingencies and Restrictions
CONTINGENCIES AND COMMITMENTS
As of March 31, 2002, there is a guarantee furnished in the amount of Th Ch$
6,790 and Th Ch$6,789 in 2001, according to the detail on the attached chart.
LAWSUITS OR OTHER LEGAL ACTIONS THE COMPANY IS INVOLVED IN
As of March 31, 2002 and 2001 there are no pending lawsuits or other legal
actions.
OTHER CONTINGENCIES
As of March 31, 2002 and 2001 the administration is not aware of any other
contingencies that might affect the Company.
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - DIRECT GUARANTEES
Creditor Of Type Of
Guarantee Debtor Guarantee Assets Committed Balances Pending Release Of Guarantees
Name Relationship Type Book Payment As Of Closing Date
Value Of Financial Statements
03-31- 03-31- 03-31- 03-31- 03-31-
2002 2001 2003 ASSETS 2004 ASSETS 2005 ASSETS
EDIFICIO CRISTALERIAS
METROPOLIS AGF DE CHILE S.A. COMMERCIAL DEPOSIT FLOOR 7,593 7,593 6,789 0 0 0 0 7,593 0
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - INDIRECT GUARANTEES
Creditor Of Type Of
Guarantee Debtor Guarantee Assets Committed Balances Pending Release Of Guarantees
Name Relationship Type Book Payment As Of Closing Date
Value Of Financial Statements
03-31- 03-31- 03-31- 03-31- 03-31-
2002 2001 2003 ASSETS 2004 ASSETS 2005 ASSETS
Societe de
Participations Rayen Cura S.A. Affiliate Solidary 0 0 3,777,984 3,512,703 755,596 0 755,596 0 2,266,792 0
Financieres et
Industrielles
36. Guarantees obtained from third parties
As of March 31, 2002 and 2001 the company has received guarantees from third
parties, which are shown below:
ITEM 2002 2001
---- ------ ------
Th Ch$ Th Ch$
Real Estate Lease Bank Boston 367,690 UF 5,959 5,963
Real Estate Lease to Telecomunicaciones 0 0
Cono Sur Ltda. (130 UF) 2,106 2,107
Lease Real Estate Office 202 AGF Building 3,806 3,809
Suppliers Sight Drafts 1,241 1,273
TOTAL 13,113 13,152
37. Local and Foreign Currency
Charts are attached showing the foreign currency balance as of March 31, 2002
and 2001.
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - ASSETS
ITEMS Currency Amount
- ----------------------------------- ---------------- -----------------------------
03-31-2002 03.31-2001
---------- ----------
Current Assets
CASH Non-adjust. Ch$ 1,585,542 910,262
CASH Dollars 103,567 97,658
TIME DEPOSITS Dollars 14,028,175 19,312,481
TIME DEPOSITS Adjustable Ch$ - 1,261,108
TIME DEPOSITS Non-adjust. Ch$ 3,015,640 -
MARKETABLE SECURITIES Adjustable Ch$ 3,264,180 5,761,877
MARKETABLE SECURITIES Dollars 9,960,793 -
MARKETABLE SECURITIES Non-adjust. Ch$ 52,678 2,266,504
DEBTORS FROM SALES Non-adjust. Ch$ 13,928,600 12,650,109
DOCUMENTS RECEIVABLE Non-adjust. Ch$ 2,589,150 1,374,775
MISCELLANEOUS DEBTORS Adjustable Ch$ 311,412 -
MISCELLANEOUS DEBTORS Non-adjust. Ch$ 130,010 520,043
MISCELLANEOUS DEBTORS Dollars 8,756 6,699
DOC.&ACTS. REC. REL. CO'S. Adjustable Ch$ 614,150 1,525,245
DOC.&ACTS. REC. REL. CO'S. Dollars - 61,879
DOC.&ACTS. REC. REL. CO'S. Non-adjust Ch$ 1,975,093 1,248,257
STOCK Adjustable Ch$ 6,050,612 6,784,624
REFUNDABLE TAX Non-adjust Ch$ 1,336,477 1,654,468
EXPENSES PAID IN ADVANCE Dollars 104,750 23,115
EXPENSES PAID IN ADVANCE Adjustable Ch$ 147,299 41,090
DEFERRED TAXES Non-adjustable Ch$ 720,729 225,320
OTHER CURRENT ASSETS Non-adjustable Ch$ 2,042,359 3,327,371
OTHER CURRENT ASSETS Dollars - 1,902,329
Fixed Assets
FIXED ASSETS Adjustable Ch$ 71,544,161 71,510,927
Other Assets
INVESTMENT REL. CO'S. Adjustable Ch$ 138,136,547 149,505,458
NEG. INVESTMENT GOODWILL Adjustable Ch$ 2,099,226 7,502,048
LONG-TERM DEBTORS Adjustable Ch$ 179,489 103,811
L-T DOC. REC. REL. CO'S. Adjustable Ch$ 20,475,637 2,842,463
INTANGIBLES Adjustable Ch$ - 2,600
DEFERRED TAX Non-adjustable Ch$ - 80,543
MISCELLANEOUS Dollars 9,260,315 133,094
Total Assets
Non-adjust. Ch$ 27,376,278 24,257,652
Dollars 33,466,356 21,537,255
Adjustable Ch$ 242,822,713 246,841,251
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - CURRENT LIABILITIES
ITEM Currency Up to 90 days 90 Days to 1 Year
----------------------------------------- --------------------------------------------
03-31-2002 03-31-2001 03-31-2002 03-31-2001
------------------- ----------------- ------------------ ---------------------
Avg. Avg. Avg. Avg.
Amount Annual Amount Annual Amount Annual Amount Annual
-------- ------- -------- -------- -------- -------- -------- --------
Thou Ch$ Int. Rate Thou Ch$ Int. Rate Thou Ch$ Int. Rate Thou Ch$ Int. Rate
Current Liabilities
Long-Term Obligations Dollars 18,838,385 3.375 199,975 7.47 0 0 0 0
1-year maturity
Long-Term Obligations Dollars 0 0 - 0 0 0 0 0
1-year maturity
Dividend Payable Non-adjust. Ch$ 67,100 0 50,946 0 0 0 0 0
Accounts Payable Non-adjust. Ch$ 1,824,364 0 1,317,267 0 0 0 0 0
Documents Payable Dollars 2,141,414 0 10,447,770 0 0 0 0 0
Documents Payable Other Currencies 303,976 0 643,478 0 0 0 0 0
Miscellaneous Creditors Non-adjust. Ch$ 476,740 0 496,100 0 0 0 0 0
Doc. and Accts.
Payable rel Co Adjustable Ch$ 23,322 0 12,714 0 0 0 0 0
Doc. and Accts. Payable
rel Co Non-adjust. Ch$ 230,150 0 112,231 0 0 0 0 0
Reserves Adjustable Ch$ 0 0 - 0 138,656 0 155,228 0
Reserves Dollars 0 0 - 0 1,115,030 0 587,991 0
Reserves Non-adjust. Ch$ 5,191,510 0 2,683,681 0 0 0 0 0
Withholding Non-adjust. Ch$ 942,013 513,871 0 0 0 0 0
Other Current Liabilities Adjustable Ch$ 3,518,931 0 - 0 0 0.00 0 0
Total Current Liabilities
Dollars 20,979,799 10,647,745 1,115,030 587,991
Non-adjust. Ch$ 8,731,877 5,174,096 0 0
Other Currencies 303,976 643,478 0 0
Adjustable Ch$ 3,542,253 12,714 138,656 155,228
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES CURRENT
PERIOD 03-31-2002
ITEM Currency 1-3 Years 3-5 years 5-10 Years More than 10 years
- -------------------------- -------- ----------------------- --------------------- --------------------- ----------------------
Amount Average Amount Average Amount Average Amount Average
--------- ------------ -------- ------------- ------- ------------ -------- -------------
Thou Ch$ Interest Rate Thou Ch$ Interest Rate Thou Ch$ Interest Rate Thou Ch$ Interest Rate
Obligations with Banks and Dollars 37,480,000 7.60 - 0.00 0 0 0 0
Financial Institutions
Deferred Custom Duties Dollars 392,541
Long-term Creditors Adjust. Ch$ 57,530 0.00 - 0.00 0 0 0 0
Long-term Reserves Dollars 3,298,846 0.00 - 0.00 0 0 0 0
Long-term Reserves Adjust. Ch$ 3,603,833 0.00 - 0.00 0 0 0 0
Deferred Taxes Non-adjust. Ch$ 1,105,824 6.69 - 0.00 0 0 0 0
Total Long-term
Liabilities
Dollars 41,171,387 - 0.00 0 0 0
Adjust. Ch$ 3,661,363 - 0 0
Non-Adjust. Ch$ 1,105,824 - 0 0
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES PREVIOUS PERIOD
03-31-2001
ITEM Currency 1-3 Years 3-5 years 5-10 Years More than 10 years
- ------------------------ -------- ----------------------- --------------------- --------------------- ----------------------
Amount Average Amount Average Amount Average Amount Average
--------- ------------ -------- ------------- ------- ------------ -------- -------------
Thou Ch$ Interest Rate Thou Ch$ Interest Rate Thou Ch$ Interest Rate Thou Ch$ Interest Rate
Obligations with banks Dollars 34,848,244 7.43815 26,136,181 7.43815 0 0 0 0
and financial
institutions
Sundry creditors Adjustable Ch$ 59,488 0 0 0 0 0 0 0
Sundry creditors Dollars 606,703 11.06 624,106 11.06 0 0 0 0
Long-term Reserves Adjust. Ch$ 3,492,821 0 0 0 0 0 0 0
Long-term Reserves Dollars 5,077,423 0 0 0 0 0 0 0
Total Long-term
Liabilities
Dollars 40,532,370 26,760,287 0 0
Adjust. Ch$ 3,552,309 0 0 0
38. Penalties
In the 2002 and 2001 fiscal years no penalties have been applied to the
company, the Members of the Board or Company Managers by the SVS or other
administrative authorities.
39. Subsequent Events
In the Special Shareholders' Meeting held on April 16, 2002, the following
agreements were reached:
1. The Board of Directors was authorized to name the company Langton Clarke -
Auditores Consultores Limitada or in its defect, Price Waterhouse Coopers, as
external auditors, depending on the best price alternative for Cristalerias de
Chile S.A.
2. Name the newspaper "El Diario" as the written media to publish summons to
meetings.
3. Distribute Dividend No. 149 of $66.10 per share, which will be paid as from
April 26, 2002.
4. The dividend policy adopted for 2002 was to distribute 50% of the fiscal
year's profits.
5. Give the Board of Directors the power to make agreements and distribute
provisional dividends to be charged against fiscal year profits. Also, it was
authorized, without calling a General Shareholders' Meeting, to agree the
payment of eventual dividends to be charged against previous fiscal year
profits.
Capital Increase of Rayen Cura S.A.I.C.
On April 22, the company made a loan of UF 229,729.92 to the subsidiary
CristalChile Inversiones S.A., which the latter used for a capital increase of
its associated company Rayen Cura S.A.I.C. of US$5,760,000, thereby
maintaining a 40% stake in that company.
40. Environment
ENVIRONMENT
In its permanent concern commitment to preserve the environment, as of March
2002 the Company has made investments of Th Ch$ 157,468 for the repair of an
electrostatic precipitator to filter the gases issued by our smelting
processes. The company thereby would continue under the emission norms for
particulate material issued by the supervisory agencies.
41. TIME DEPOSITS
At March 31, 2002 and 2001 the Company presents the following information:
INSTITUTION Currency 2002 2001
- ---------------------------- ---------------- --------------- ---------------
Th Ch$ Th Ch$
Babco Credito e Inversiones US$ 35,709,902 286,825
Banco Scotiabank US$ 8,318,273 0
Banco Santander N. York US$ 0 12,247,977
Banco Bilbao Viscaya New York US$ 0 2,488,190
Banco Santiago US$ 0 4,290,389
Banco Santiago $ 3,015,640 1,262,108
------------- -------------
TOTAL 17,043,815 20,573,589
============= =============
42. STOCK TRANSACTIONS
During the 2002 and 2001 fiscal years Board Members, controlling stockholders,
and related individuals and entities did not carry out any stock transactions:
43. DISTRIBUTION OF SHAREHOLDERS
The distribution of stockholders as of March 31, 2002 and 2001 is the
following:
% of Shareholding No. of Shareholders
--------------------------- ------------------------------
TYPE OF SHAREHOLDER 2002 2001 2002 2001
10% or more shareholding 34.03 45.88 1 2
Less than 10% shareholding with
investment equal to or higher
than 200 UF 65.81 53.95 257 236
Less than 10% shareholding with
investment lower than 200 UF 0.16 0.17 833 856
TOTAL 100.00 100.00 1,091 1,094
CONTROLLER OF THE COMPANY 52.14 52.14 3 3
44. BOARD COMPENSATION
During the years 2002 and 2001 reserves were made for the profit sharing of
the fiscal year in the amount of Th Ch$717,857 and Th Ch$698,732,
respectively, according to the following detail:
2001 2000
-------------- ------------
Th Ch$ Th Ch$
Profit sharing
previous fiscal year 710,824 698,732
Reserve for the year 7,033 69,502
---------- ----------
TOTAL 717,857 768,234
CRISTALERIAS DE CHILE S.A.
NOTES TO FINANCIAL STATEMENTS AS OF MARCH 31, 2002 AND 2001
1. FINANCIAL INDICATORS
---------------------
03-31-2002 03-31-2001 12-31-2001
LIQUIDITY
Current liquidity times 1.78 3.54 2.35
Acid ratio times 1.54 3.03 2.01
DEBT
Debt ratio times 0.43 0.43 0.43
Short-term debt % 38.30% 19.60% 27.90%
Long-term debt % 61.70% 80.40% 72.10%
Coverage of interest expenses times 1.86 1.76 5.46
ACTIVITY
Total assets Mill Ch$ 303,665 292,636 303,480
Investments Mill Ch$ 2,647 8,726 28,230
Disposal of property Mill Ch$ 3 3 1,339
Inventory turnover times 7.1 6.6 7.1
Inventory permanence days 50.6 54.3 50.7
PROFITS (LOSSES)
Operating income Mill Ch$ 15,090 14,295 65,520
Operating costs Mill Ch$ 9,097 8,870 39,643
Operating profit Mill Ch$ 4,956 4,403 20,658
Financial expenses Mill Ch$ 648 1,138 3,917
Non-operating result Mill Ch$ -3,961 -2,989 -1,409
R.A.I.I.D.A.I.E. Mill Ch$ 3,361 3,833 29,578
After-tax profit Mill Ch$ 176 1,738 17,700
RATE OF RETURN
Return on equity % 0.10% 0.90% 8.50%
Return on assets % 0.10% 0.60% 6.00%
Return on operating assets % 5.20% 5.00% 22.90%
Profit per share $ 2.7 27.1 276.6
Return on dividends % 3.20% 3.50% 3.10%
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.
Coverage of Interest Expenses: Profit 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.
R.A.I.I.D.A.I.E.: Profit before taxes, interest, depreciation, amortization, and
special items.
Return on dividendes: Sum of dividends paid in the last twelve months divided by market
price of stock at closing of period.
The main trends observed in the 2002 fiscal year indicators are:
LIQUIDITY INDICES
There is a reduction in the liquidity index in relation to March 2001 despite
a significant reduction in notes payable, because of the transfer to the short
term of long-term syndicated loan installment, the increase in reserves, and
the effect on bank loans in dollars of the rise in the price of the dollar,
which rose by 10.2% between April 2001 and March 2002.
DEBT INDICES
Although the debt index has had a slight increase because of the rise in the
rate of exchange, this financial index remained steady during the periods
studied because of the increase in equity resulting from the increase in
profits.
On the other hand, the distribution of the short-term and long-term debt shows
variations due to the expiry of installments payable in less than one year of
Long Term Liabilities that have been transferred to Short Term.
The coverage index of financial expenses fell with respect to the previous
year because of lower profits.
ACTIVITY INDICES
The indices of inventory turnover and permanence improved because of the
stocks bought by management to reduce product stock inventories.
PROFITABILITY INDICES
Profitability indices fell during the fiscal year because of a reduction in
profits.
On the other hand, although dividends distributed between April 2000 and March
2001 rose by 8.1% compared to the January/December 2001 period, the rate of
return of dividends dropped because of the increase in the price of stocks in
the stock exchange, which rose from $3,512 per share as of March 31, 2001, to
$4,300 per share as of December 31, 2001.
2. DIFFERENCE BETWEEN BOOK VALUE AND MARKET VALUE OF MAIN ASSETS
-------------------------------------------------------------
The financial statements of the company have been prepared according to
generally accepted accounting principles and general and specific norms of the
Securities and Insurance Commission, which is the agency that regulates the
Company. The valuation of the assets includes adjustment for currency
devaluation, reserves, and technical revaluations. We believe the foregoing is
a reasonable way to value the company's permanent investments.
As of March 31, 2002, there were financial investments in stocks recorded in
the accounting according to their purchase price of Th Ch$ 3,264 million whose
market value on the same date was Th Ch$ 5,761 million.
3. RESULTS OF THE FIRST QUARTER OF 2002
------------------------------------
3a. Individual Result
The Company had non-consolidated sales of Ch$ 15,090 million as of March 2002,
which is a 5.6% increase compared to the previous fiscal year. Volumes sold
increased by 5.3%, reaching 53,922 tons. This volume level is mainly due to
higher sales of bottles for the non-returnable beer and wine markets.
Operating profit rose by 12.6%, totaling Ch$4,956 million. For comparison
purposes the operating margin increased due the lower sale of lower-margin
imported products compared to the first quarter of 2001.
The Company's net profit amounted to $176 million compared to $1,738 million
the previous year. This result can be explained in part by the reduction in
the non-operating result, which passed from a loss of $2,989 million in 2001
to a loss of $3,961 million in 2002. This greater loss results from the effect
of the devaluation of the Argentine peso (from $1.7 to $2.9 Argentine pesos
per dollar) in the accounting of the financial statements of Rayen Cura, which
generated a loss of $1,477 million for the quarter. This was compensated in
part in Vina Santa Rita and CIECSA. In addition, in the year 2001 the company
had an extraordinary income of Ch$976 million corresponding to the reversion
of the reserve for the repair of Furnace C, included in the account
"Extraordinary Items".
Finally, the company reflects a special contribution of Ch$ 1,785 million for
the reverse of the reserve for repair of Furnace C, which is included in the
"Special items" account.
3b. Result in Subsidiaries
As of March 31, 2002, Santa Rita's profit was Ch$1,016 million, which was a
5.4% increase over the same period in 2001. In the local market, the volumes
of the Company were 17% higher than in 2001. The prices in this market dropped
20.4% in real terms, as a result of increased competition and lower cost of
musts, which led to valued sales in the local market dropping 6.9%. Sales in
the export market decreased 7.1% in volume due to lower sales to the European
and Latin American markets. During the period, exports represented 52% of
total income with US$ 9.9 million. The operating result fell 30.4%, reaching
Ch$1,492 million, mainly as a result of the fall in prices in the local market
and the reduction in volumes in the export market. The average price in
dollars per case for the export market was US$ 29.6, whereas the average price
for the industry was US$22.05 per case. As of March 2002, Santa Rita showed a
non-operating loss of Ch$261 million, compared to a loss of Ch$817 million in
2001, which can be mainly explained by lower financial costs.
Megavision, the main subsidiary of CIECSA, showed an operating profit of Ch$41
million, compared with an operating loss of Ch$591 million in the previous
year. Megavision had a
22.4% share of the audience during the period.1 Net sales increased by 26.2%
totaling Ch$3,626 million because of the live programs. As of March 2002,
Megavision had a net loss of Ch$187 million, compared to a loss of Ch$791
million in 2001. CIECSA improved its non-operating results passing from a loss
of Ch$543 million in 2001 to loss of Ch$361 in 2002, due mainly to lower
losses in its subsidiaries. CIECSA's final result was a loss of Ch$252 million
compared to a loss of Ch$875 million the year before.
Envases CMF S.A. showed a net profit of Ch$278 million in 2002 compared with a
profit of Ch$146 million in 2001 (this last figure considers only the result
of Crowpla-Reicolite before its association to Multipack). The company
increased its sales 131%, reaching Ch$8,341 million during the year. This
significant increase in sales is largely attributable to the partnership
entered into with Multipack at the end of June 2001. Sales volume increased
109%, reaching 5,950 tons. Operating profit was Ch$805 million, which is 126%
higher than the profit obtained during 2001.
In the area of cable TV, Cristalchile Comunicaciones S.A. (99.99% subsidiary
of Cristalerias), is the owner of 50% of Cordillera Comunicaciones Ltda.,
which in turn is the owner of 99% of Metropolis-Intercom S.A.
Metropolis-Intercom S.A. registered sales of Ch$11,372 million during 2002
compared with Ch$10,681 million during the same period the previous year. As
of March 2002, Metropolis-Intercom had a net loss of Ch$3,777 million compared
with a loss of Ch$3,959 million in 2001. This result includes a depreciation
charge of Ch$2,683 million (Ch$2,863 million in 2001) corresponding to the HFC
network acquired in July 2000. The company ended the period with 247,000
subscribers, 10.5% down compared to the same date in 2001, due to a greater
number of discontinued subscriptions because of the deteriorated domestic
economic situation.
As a result of the foregoing and the amortization of the lower value of
investments through Cordillera Comunicaciones from $1,003 million in the
quarter ($944 million in 2001), Cristalchile Comunicaciones recorded a net
loss of $2,391 million (loss of $2,417 in the first quarter of 2001).
4. CASH FLOW STATEMENT
-------------------
During the first quarter of 2002 a total net positive flow of Ch$6,624 million
was generated, which is explained by a positive flow generated by operating
activities of Ch$7,075 million, which was reduced by a negative financing flow
of Ch$1,907 million and a positive flow of investment activities of Ch$1,456
million.
The operating flow corresponds basically to the collection of sales and
financial interests that were reduced by payment to suppliers, interests and
income tax.
- ----------
1 Measured between 9:00 A.M. and 1:00 A.M. (in other words 16 hours a day)
from Monday to Sunday.
The financing flow can be explained mainly by payment of dividends for
Ch$1,880 million in January 2002.
The investment flow is mainly explained by the redemption of Term Deposits at
over 90 days and the expiry of future contracts. This flow was used in part in
the incorporation of fixed assets and in the investment of financial
instruments.
The foregoing results in an increase in the final balance of cash and cash
equivalent, which passed from Ch$18,440 million as of March 31, 2001 to
$25,139 million as of March 31, 2002.
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
----------------------------------------------
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$100 million, which was agreed
at a variable rate Libo plus 1.125 percentage points on average. On the other
hand, as of March 31, 2002 the Company had available funds of $38,100 million
invested at different terms in instruments like term deposits, bonds, fixed
rate and repurchase agreement mutual funds.
The company does 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.
The Company maintains liabilities in dollars of US$111.9 million, which
represent 24.2% of its assets, and include a long-term syndicated loan of
US$100 million. As of March 31 the Company has investments in dollars of
US$50.4 million in term deposits, bonds and fixed rate mutual funds. It also
has dollar purchase contracts of US$119.6 million, and a contract that
provides coverage for Euro/Dollar fluctuations for 3.5 million Euros, all of
which provides a reasonable coverage for exchange rate variations risk.
RELEVANT EVENTS
In a letter dated April 17, 2002, the SVS was notified that in the Meeting of
the Board of Directors held on April 16, 2002, it was agreed to start a bond
issue process to fully or partially substitute short and medium term
liabilities and finance future investments.
Non-secured sight bonds non-convertible into shares for an amount of UF
4,100,000 (four million one hundred UF) shall be issued. The bonds will be
placed in the capital market, under the terms and conditions, and timing to be
defined.
The Board of Directors authorized the Chairman, Vice-chairman, Mr. Jaime Claro
Valdes and the company's General Manger, so that acting jointly any two of
them, they may establish the terms, conditions and timing of the issue, and so
they may enter into contracts and carry out any acts necessary for the issue
and sale of the bonds.
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 1/1/2002
1.00.01.21 Closing date 3/31/2002
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: Chilean pesos
1.00.01.40 Type of Balance: Consolidated
ASSETS NOTE No. 03-31-02 03-31-01
5.11.00.00 TOTAL CURRENT ASSETS 61,969,972 60,955,214
5.11.10.10 Cash 1,689,109 1,007,920
5.11.10.20 Time deposits 41 17,043,815 20,573,589
5.11.10.30 Marketable securities (net) 4 13,277,651 8,028,381
5.11.10.40 Debtors from sales (net) 5 13,928,600 12,650,109
5.11.10.50 Documents receivable (net) 5 2,589,150 1,374,775
5.11.10.60 Sundry debtors (net) 5 450,178 526,742
5.11.10.70 Doc. & accts receivable related Co. 6 2,589,243 2,835,381
5.11.10.80 Inventories (net) 7 6,050,612 6,784,624
5.11.10.90 Recoverable taxes 8 1,336,477 1,654,468
5.11.20.10 Prepaid expenses 252,049 64,205
5.11.20.20 Deferred taxes 8 720,729 225,320
5.11.20.30 Other current assets 10-11 2,042,359 5,229,700
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 71,544,161 71,510,927
5.12.10.00 Land 12 1,440,857 1,815,934
5.12.20.00 High rises & infrastructure 12 16,850,624 15,444,848
5.12.30.00 Machinery & equipment 12 89,969,990 72,205,393
5.12.40.00 Other fixed assets 12 8,870,109 24,584,808
5.12.50.00 Positive goodwill from technical
revaluation of fixed assets 12 8,253,185 10,220,649
5.12.60.00 Depreciation (minus) 12 53,840,604 52,760,705
5.13.00.00 TOTAL OTHER ASSETS 170,151,214 160,170,017
5.13.10.10 Investment in related companies 14 138,136,547 149,505,458
5.13.10.20 Investment in other companies 0 0
5.13.10.30 Negative goodwill 16 2,099,226 7,502,048
5.13.10.40 Positive goodwill (minus) 0 0
5.13.10.50 Long-term debtors 5 179,489 103,811
5.13.10.60 Doc. & accts receivable related Co. 6 20,475,637 2,842,463
5.13.10.65 Long-term deferred taxes 0 80,543
5.13.10.70 Intangibles 17 0 2,600
5.13.10.80 Amortization (minus) 0 0
5.13.10.90 Other 18 9,260,315 133,094
5.13.20.10 Long-term leasing contracts (net) 0 0
5.10.00 TOTAL ASSETS 303,665,347 292,636,158
LIABILITIES
1.00.01.30 Type of Currency: Chilean pesos
1.00.01.40 Type of Balance: Consolidated
LIABILITIES NOTE No. 03-31-02 03-31-01
5.21.00.00 TOTAL CURRENT LIABILITIES 34,811,591 17,221,252
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 18,838,385 199,975
5.21.10.30 Obligations with the public
(notes) 0 0
5.21.20.40 Short-term portion oblig with public 0 0
5.21.10.50 Long-term oblig. due within 1 year 0 0
5.21.10.60 Dividends payable 67,100 50,946
5.21.10.70 Accounts payable 1,824,364 1,317,267
5.21.10.80 Notes payable 2,445,390 11,091,248
5.21.10.90 Sundry creditors 476,740 496,100
5.21.20.10 Notes & accts payable related Co. 6 253,472 124,945
5.21.20.20 Provisions 23 6,445,196 3,426,900
5.21.20.30 Withholdings 942,013 513,871
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 3,518,931 0
5.22.00.00 TOTAL LONG-TERM LIABILITIES 56,043,953 70,844,966
5.22.10.00 Oblig with Banks & Financial Inst. 21 46,850,000 60,984,425
5.22.20.00 Long-term oblig with public (bonds) 0 0
5.22.30.00 Long-term notes payable 0 0
5.22.40.00 Long-term sundry debtors 1,185,450 1,290,297
5.22.50.00 Long-term notes & accts. payable
related companies 6 0 0
5.22.60.00 Long-term provisions 6,902,679 8,570,244
5.22.70.00 Long-term deferred taxes 8 1,105,824 0
5.22.80.00 Other long-term liabilities 0 0
5.23.00.00 MINORITY INTEREST 0 0
5.24.00.00 TOTAL EQUITY 212,809,803 204,569,940
5. 24.10.00 Paid-in capital 27 62,863,356 62,497,517
5. 24.20.00 Reserve capital revaluation 27 -251,453 62,496
5. 24.30.00 Premium in sale of own shares 27 26,687,378 26,665,262
5. 24.40.00 Other reserves 27 8,009,974 6,889,810
5. 24.50.00 Retained earnings (addition of
codes
5.24.51.00 to 5.24.56.00) 27 115,500,548 108,454,855
5.24.51.00 Reserve future dividends 27 102,386,923 93,663,612
5.24.52.00 Accrued profits 27 13,060,432 13,220,914
5.24.53.00 Accrued losses (minus) 0 0
5.24.54.00 Profit (loss) for the year 27 175,829 1,737,539
5.24.55.00 Prov. dividends (minus) 0 0
5.24.56.00 Accr. deficit dev. Period 27 -122,636 -167,210
5.20.00.00 TOTAL LIABILITIES 303,665,347 292,636,158
INCOME STATEMENT
2.02 INCOME STATEMENT
1.00.01.30 Type of Currency: Chilean pesos
1.00.01.40 Type of Balance: Consolidated
INCOME STATEMENT NOTE No. 03-31-02 03-31-01
5.31.11.00 OPERATING RESULTS 4,955,619 4,402,871
5.31.11.10 Operating Margin 5,993,252 5,424,548
5.31.11.11 Operating income 15,090,301 14,294,954
5.31.11.12 Operating costs (minus) 9,097,049 8,870,406
5.31.11.20 Adm. & sales expenses (minus) 1,037,633 1,021,677
5.31.12.00 NON-OPERATING RESULTS -3,961,206 -2,989,022
5.31.12.10 Interest income 437,301 550,050
5.31.12.20 Profit investments related Co. 14 688,901 750,085
5.31.12.30 Other non-operating income 27 92,445 86,272
5.31.12.40 Profit investments rel- Co.
(-) 4,190,814 3,283,252
5.31.12.50 Amortization neg.goodwill (-) 16 41,028 116,364
5.31.12.60 Interest expenses (minus) 648,241 1,138,141
5.31.12.70 Other non-operat expenses (-) 28 147,534 82,501
5.31.12.80 Price level restatement 29 84,355 48,825
5.31.12.90 Exchange differences 30 -236,591 196,004
5.31.10.00 RESULTS BEFORE INCOME TAX AND
EXTRAORDINARY ITEMS 994,413 1,413,849
5.31.20.00 INCOME TAX 8 -818,584 -652,110
5.31.30.00 EXTRAORDINARY ITEMS 0 975,800
5.31.40.00 PROFIT (LOSS) BEFORE MINORITY
INTEREST 175,829 1,737,539
5.31.50.00 MINORITY INTEREST 0 0
5.31.00.00 NET PROFIT (LOSS) 175,829 1,737,539
5.32.00.00 Amortization of positive goodwill 0 0
5.30.00.00 PROFIT (LOSS) FOR THE YEAR 6 175,829 1,737,539
DIRECT CASH FLOW STATEMENT
2.03 CASH FLOW STATEMENT
1.00.01.30 Type of Currency: Chilean pesos
1.00.01.40 Type of Balance: Consolidated
DIRECT CASH FLOW STATEMENT NOTE No. 03-31-02 03-31-01
5.41.11.00 NET FLOW FROM OP. ACT. 7,074,847 9,822,018
5.41.11.10 Collection from sales debtors 20,240,668 20,652,444
5.31.11.20 Interests received 258,900 885,659
5.31.11.30 Dividends & other distributions funds
received 44,854 85,969
5.31.11.40 Other income 203,717 966
5.31.11.50 Payments to suppliers & personnel (-) 11,043,036 9,845,870
5.31.11.60 Interest paid (minus) 487,014 948,870
5.31.11.70 Income tax paid (minus) 825,269 777,754
5.31.11.80 Other expenses 32 81,458 111,902
5.31.11.90 V.A.T. & other taxes 1,236,515 119,085
5.41.12.00 CASH FLOW FINANCING ACTIVITIES -1,907,245 -1,436,169
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) 1,879,581 1,396,706
5.41.12.40 Capital distributions (minus) 0 0
5.41.12.45 Repayment of loans (minus) 18,766 0
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. (-) 8,898 0
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) 32 0 39,463
5.41.13.00 CASH FLOW FROM INVESTING ACTIVITIES 1,456,189 -23,708,409
5.41.13.05 Sale of fixed assets 2,562 3,371
5.41.13.10 Sale of permanent investments 0 0
5.41.13.15 Sale of other investments 4,931,553 1,258,617
5.41.13.20 Proceeds secured loans to related
Comp. 0 5,763
5.41.13.25 Proceeds other loans to related
companies 0 0
5.41.13.30 Other investment income 32 1,223,646 500,867
5.41.13.35 Incorporation of fixed assets (minus) 2,843,725 9,480,508
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) 1,517,440 15,885,388
5.41.13.55 Other loans to related companies
(minus) 3,070 91,784
5.41.13.60 Other loans to related companies
(minus) 656 2,077
5.41.13.65 Other distrib of funds on invest
activities (-) 32 336,681 17,270
5.41.00.00 TOTAL NET CASH FLOW FOR THE PERIOD 6,623,791 -15,322,560
5.42.20.00 EFFECT OF INFLATION ON CASH & CASH EQUIV. 74,522 -24,108
5.41.00.00 NET CHANGE IN & CASH EQUIVALENT 6,698,313 -15,346,668
5.42.00.00 CASH & CASH EQUI AT BEGINNING OF PERIOD 18,440,884 24,280,396
5.43.00.00 CASH & CASH EQUIV BALANCE AT END OF PERIOD 25,139,197 8,933,728
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: Chilean pesos
1.00.01.40........Type of Balance: Consolidated
CASH FLOW - INCOME STATEMENT RECONCILIATION NOTE No. 03-31-02 03-31-01
5.50.10.00 Profit (Loss) for the year 175,829 1,737,539
5.50.20.00 Profit (Loss) in sale of assets -738 -18
5.50.20.10 (Profit) Loss in sale of fixed assets -738 -18
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) 6,890,868 2,852,522
5.50.30.05 Depreciation for the year 11 2,114,814 1,714,611
5.50.30.10 Amortization of intangibles 208,725 43,098
5.50.30.15 Write-offs and provisions 807,454 349,976
5.50.30.20 Accrued earnings from investments in
related companies (minus) 14 688,901 750,085
5.50.30.25 Accured losses from investments in
related Co. 14 4,190,814 3,283,252
5.50.30.30 Negative goodwill amortization 16 41,028 116,364
5.50.30.35 Positive goodwill amortization (minus) 0 0
5.50.30.40 Price level restatement 29 170,907 -48,825
5.50.30.45 Net exchange difference 30 -25,325 -196,004
5.50.30.50 Other non-cash credits to results (minus) -7,879 1,659,865
5.50.30.55 Other non-cash debits to results 63,473 0
5.50.40.00 Changes in Assets affecting cash flow (incr)
decreases 1,971,363 2,203,685
5.50.40.10 Debtors from sales 1,218,347 2,780,209
5.50.40.20 Inventory 274,496 -393,601
5.50.40.30 Other assets 478,520 -182,923
5.50.50.00 Changes in liabilities affecting cash flow
increases (decr) -1,962,475 3,028,290
5.50.50.10 Accounts payable related to results for
the year -1,109,194 948,218
5.50.50.20 Interests payable 21,572 164,984
5.50.50.30 Income tax payable (net) -171,358 857,987
5.50.50.40 Other accounts payable related to
non-oper results -675,275 1,176,304
5.50.50.50 VAT and other taxes payable (net) -28,220 -119,203
5.50.60.00 Profit (Loss) of minority interest 0 0
5.50.00.00 NET OPERATING CASH FLOW 7,074,847 9,822,018
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 2002 and 2001.
b) Preparation basis of financial statements:
These individual financial statements as of March 31, 2002 and 2001 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 2001 fiscal year are presented updated according to
non-accounting terms as of March 31, 2002 by 2.5%.
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 2002 fiscal year, which was -0.4% (0.1% in 2001).
e) Conversion Basis
Balances in foreign currency and indexed currency units have been converted to
pesos at the indicated parities:
2001 2000
Ch$ Ch$
---- ----
U.S. Dollar 655.90 594.97
Pound Sterling 934.86 843.93
Swiss Franc 389.79 341.80
EURO 570.94 521.72
Unidad de Fomento 16,197.66 15,813.07
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,
2002.
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, 2002 and 2001
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, 2002 and 2001.
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, 2002 there are no intangibles; in the 2001 fiscal year there is a
balance for trademarks.
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 has 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, 2002 and
2001 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."
01. Accounting Changes
In the 2002 and 2001 period, there have not been any changes in the
accounting criteria that affect the individual financial statements.
02. Marketable Securities
At March 31, 2002 investments in stock are included in the amount of Th
Ch$ 3,264,180; Th Ch$ 960,793 in Mutual Funds and Th Ch$ 52,678 in interests
accrued for Bonds.
Note No. 18 provides detailed information about the Fixed Rate
Instruments classified in short and long term.
At March 31, 2001 investments in stock in the amount of Th Ch$
5,71761,878 and Th Ch$ 2,266,503 in PRC of the Central Bank have been
included. CRISTALERIAS DE CHILE S.A.
NOTE 4 -MARKETABLE SECURITIES- BALANCE COMPOSITION
Type of Security Book Value
03-31-2002 03-31-2001
---------- ----------
Stock 3,264,180 5,761,877
Bonds 52,678 0
Mutual fund shares 9,960,793 0
Investment fund shares 0 0
Public tender promissory notes 0 2,266,504
Mortgage bonds 0 0
Total Marketable Securities 13,277,651 8,028,381
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES - SHARES
Market
Number of Share Unit Market Investment Corrected
R.U.T. Company Name Shares Percentage Value Value Cost
- ------ ------------ ------ ---------- ----- ----- ----
96.512.200-1 Bodegas y Vinedos Santa 56,208,005 8.8380 92.510 5,199,803 3,264,180
Emiliana S.A.
Value Investment Portfolio 5,199,803 3,264,180
Adjustment Reserve 0
Book value, Investment Portfolio 3,264,180
03. Short-Term and Long-Term Debtors
At March 31, 2002 and 2001 there are balances of short-term debtors of Th Ch$
16,967,928 (Th Ch$ 14,551,626 in 2001).
There is also a balance of Th Ch$ 179,489 for Long-Term debtors in 2002 (Th
Ch$ 103,811 in 2001).
At March 31, 2002 and 2001 the company has established a reserve for bad debts
of Th Ch$ 128,313 in 2002 (Th Ch$ 131,521 in 2001), 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 Assets
--------------
Over 90 days Long Term
Area Up to 90 days up to 1 year Subtotal Total Assets (net) ---------
---- ------------- ------------ -------- ------------------
03-31-2002 03-31-2001 03-31-2002 03-31-2001 03-31-2002 03-31-2001 03-31-2002 03-31-2001
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Debts from Sales 12,877,021 10,656,432 1,179,892 2,125,198 14,056,913 13,928,600 12,650,109 0 0
Estimate of
non-collectable
debt 0 0 0 0 128,313 0 0 0 0
Documents
receivable 2,552,715 1,331,339 36,435 43,436 2,589,150 2,589,150 1,374,775 0 0
Estimate of bad
debtors 0 0 0 0 0 0 0 0 0
Misc. debtors 425,289 500,043 24,889 26,699 450,178 450,178 526,742 179,489 103,811
Estimate of bad
debtors 0 0
Total Long Term Debtors 179,489 103,811
04. Balances and Transactions with related entities
Balances receivable in the Short-Term as of March 31, 2002 and 2001 are
composed of Th Ch$ 2,589,243 and Th Ch$ 2,835,381. In the Long-Term a balance
is recorded of Th Ch$ 20,475,637 and Th Ch$ 2,842,463, respectively, which
correspond to Th Ch$ 18,272,755 in 2002 for the sale of Rayen Cura S.A.I.C.
stocks to the subsidiary Cristalchile Inversiones S.A., equivalent to UF
1,128,111, which are payable within a maximum term of two years as of December
28, 2001, without interests and Th Ch$ 2,202,882 in 2002 8Th Ch$ 2,842,463 in
2001), which correspond to loans granted to Red Televisiva Megavision S.A.
Detail of outstanding credits from related companies:
1) Loan to Red Televisiva Megavision S.A.
Annual Rate 7.24%, UF adjustability
05.07.2002 17,000 UF Th Ch$ 275,360
05.07.2003 17,000 UF Th Ch$ 275,360
05.07.2003 17,000 UF Th Ch$ 275,360
05.07.2004 17,000 UF Th Ch$ 275,360
05.07.2004 17,000 UF Th Ch$ 275,360
05.07.2005 17,000 UF Th Ch$ 275,360
05.07.2005 17,000 UF Th Ch$ 275,360
05.07.2006 17,000 UF Th Ch$ 275,360
05.07.2006 17,000 UF Th Ch$ 275,360
05.07.2007 17,000 UF Th Ch$ 275,362
2) Loan to Cristal Chile Comunicaciones S.A. UF adjustability
03.31.2002 838,822 UF Th Ch$ 13,587
3) There are balances for invoicing of Sales of bottles and services with the
following related companies with expiration under 90 days:
Th Ch$
------
S.A. Vina Santa Rita 1,798,759
Vina Los Vascos S.A. 176,199
Rayen Cura S.A. 137
Total 1,975,095
4) Balances Payable in the Short-Term are in the amount of Th Ch$253,472 in
2002 and Th Ch$124,945 in 200a, which correspond to purchases of various
materials.
For invoicing there are accounts payable of related companies for the
following balances with expirations under 90 days:
Th Ch$
-------
S.A. Vina Santa Rita 200,491
Ediciones Financieras S.A. 3,699
Vina Los Vascos S.A. 15,890
Envases CMF S.A. 87
-------
TOTAL 220,167
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCE AND TRANSACTIONS WITH RELATED COMPANIES
DOCUMENTS AND ACCOUNTS
PAYABLE DOCUMENTS AND ACCOUNTS RECEIVABLE
R.U.T. Company Short Term Long Term
------ ------- ---------- ---------
03-31-2002 03-31-2001 03-31-2002 03-31-2001
---------- ---------- ---------- ----------
86547900-K S.A. VINA SANTA RITA 1,798,759 1,248,319 0 0
79952350-7 RED TEL. MEGAVISION S.A. 600,561 597,928 2,202,882 2,204,341
87941700-7 VINA CARMEN S.A. 0 333,394 0 0
96721580-5 CRISTACHILE COM. S.A. 13,587 11,893 0 0
79534600-7 VINA CENTENARIA S.A. 0 4,809 0 0
83032100-4 SERV. Y CONS. HENDAYA S.A. 0 504 0 0
96826870-8 INMOBILIARIA DON ALBERTO S.A. 0 0 0 36,613
89150900-6 VINA LOS VASCOS S.A. 176,199 0 0 0
0-E RAYEN CURA S.A. I.C. 137 0 0 0
96972440-5 CRISTALCHILE INVERSIONES S.A. 0 0 18,272,755 0
96539380-3 EDICIONES FINANCIERAS S.A. 0 97 0 0
86881400-4 ENVASES CMF S.A. 0 638,437 0 601,509
TOTAL 2,589,243 2,835,381 20,475,637 2,842,463
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCES AND TRANSACTIONS WITH RELATED COMPANIES
DOCUMENTS AND ACCOUNTS PAYABLE
R.U.T. Company Short Term Long Term
------ ------- ---------- ---------
03-31-2002 03-31-2001 03-31-2002 03-31-2001
---------- ---------- ---------- ----------
86547900-K S.A. VINA SANTA RITA 200,491 76,755 0 0
89150900-6 VINA LOS VASCOS S.A. 15,890 15,674 0 0
87941700-7 VINA CARMEN S.A. 0 15,107 0 0
96608270-4 CIECSA S.A. 23,322 12,714 0 0
96539380-3 EDICIONES FINANCIEROS S.A. 3,699 3,704 0 0
90320000-6 CIA. ELECTROMETALURGICA S.A. 0 571 0 0
96972440-5 CRISTALCHILE INVERSIONES S.A. 9,983 0 0 0
86881400-4 ENVASES CMF S.A. 87 0 0 0
79534600-7 VINA CENTENARIA S.A. 0 420 0 0
TOTAL 253,472 124,945 0 0
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCES AND TRANSACTIONS WITH RELATED COMPANIES
TRANSACTIONS
03-31-2002 03-31-2001
Description Effect on Effect on
Company R.U.T. Relationship of Transaction Amount Earnings Monto Earnings
------- ------ ------------ -------------- ------ -------- ----- --------
(Debit/Credit) (Debit/
Credit)
VINA CARMEN S.A. 87941700-7 Indirect subsidiary 0 0 282,537 78,081
Indirect subsidiary 0 0 17,399 0
VINA CENTENARIA S.A. 79534600-7 Indirect subsidiary 0 0 4,076 1,126
Indirect subsidiary 0 0 357 0
SERV. Y CONS. HENDAYA S.A. 83032100-4 Controlling stockholder 170,381 0 128,070 0
Controlling stockholder 249,833 -249,833 168,294 -168,294
Controlling stockholder 4,831 4,831 5,251 5,251
CLARO Y CIA. 79753810-8 With the Chairman 5,553 -5,553 1,942 -1,942
VAPORES S.A. 90160000-7 Indirect affiliate 12,265 0 218,574 0
VINA LOS VASCOS S.A. 89150900-6 Indirect affiliate 165,933 43,230 86,953 24,030
Indirect affiliate 11,770 0 19,706 0
EDICIONES FINANCIERAS S.A. 96793770-3 Indirect affiliate 3,135 -3,135 3,212 -3,212
QUEMCHI S.A. 96640360-8 Indirect affiliate 2,435 2,435 2,428 2,428
Indirect affiliate 0 0 51,250 0
Indirect affiliate 0 0 51,250 0
Indirect affiliate 0 0 156 156
CRISTALCHILE COMUNICACIONES 96721580-5 Subsidiary 0 0 3,313 0
Subsidiary 0 0 116 116
Subsidiary 49 -49 23 23
BAYONA S.A. 86755600-1 Controlling stockholder 177,376 0 133,328 0
INMOBILIARIA DON ALBERTO 96826870-8 Affiliate 0 0 99 99
NAVARINO S.A. 96566900-0 Indirect affiliate 2,435 2,435 2,428 2,428
CIA. ELECTROMETALURGICA S.A. 90320000-6 Controlling stockholder 653,400 0 491,139 0
Controlling stockholder 0 0 1,051 0
CIECSA S.A. 96608270-4 Subsidiary 0 0 103,322 0
Subsidiary 149 149 51 -51
S.A. VINA SANTA RITA 86547900-K Subsidiary 1,524,381 397,143 1,005,456 277,867
Subsidiary 0 0 1,298 1,298
Subsidiary 0 0 1,857 1,857
Subsidiary 190,535 -164 98,353 -754
RED TELEVISIVA MEGAVISION 79952350-7 Indirect affiliate 49,840 49,840 46,843 46,843
S.A. Indirect affiliate 11,050 -11,050 7,519 7,519
ENVASES CMF S.A. 86881400-4 Affiliate 0 0 20,270 20,270
Affiliate 0 0 3,327 3,327
Affiliate 74 -74 0 0
RAYEN CURA S.A.I.C. 0-E Affiliate 0 0 14,543 4,728
05. 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:
2002 Th Ch$ 2001 Th Ch$
----------- -----------
Finished Products 2,494,731 3,878,019
Raw Materials and Fuel 1,991,688 1,287,276
Materials and spare parts to be consumed 1,216,761 1,085,981
Materials in transit 347,432 533,348
--------- ---------
TOTAL 6,050,612 6,784,624
06. 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% of First Cateogry
Income Tax in 2002 and 15% in 2001, and 35% as single tax under Art.
21, for the 2001 and 2000 fiscal years.
Credits against taxes are shown deducting the payable obligation.
The itemized list is the following:
2002 2001
Th Ch$ Th Ch$
------ ------
Fiscal year income tax reserve (664,308) (674,225)
Single tax reserve (3,290) (3,315)
--------- ---------
SUBTOTAL (667,598) (677,540)
Credits:
Monthly reserve payments 840,868 856,115
Training expenditures 0 4,755
Credit from donations 0 1,575
Recoverable VAT 0 1,166,120
--------- ---------
CREDIT SUBTOTAL 840,868 2,028,565
INCOME TAX TOTAL
Taxes to be Recovered
VAT Tax Credit previous fiscal yr 1,163,207 303,443
--------- ---------
TOTAL TAXES TO BE RECOVERED 1,336,477 1,654,468
C) TAXABLE PROFIT FUND
The company showed taxable profits to be distributed:
Generated as of 12.31.1983: 2001 Thou Ch$ 2000 Thou Ch$
------------- -------------
Profit adjustment 1,839,146 1,894,588
Generated since 01.01.1984:
Without Credit 2,575,869 153,292
With 10% First Category Credit 79,070 510,143
With 15% First Category Credit 97,171,878 92,601,264
With 15% Additional Rate Credit 713 713
With 16% First Category Credit 3,552,709 0
----------- ----------
SUBTOTAL TAX PROFITS 103,380,239 93,265,414
Non-income revenues 6,572,216 6,570,755
TOTAL EARNINGS 109,952,455 99,836,169
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
2002 2001
M$ M$
---- ----
Year's income tax reserve -664,308 -674,225
Reserve corporate tax -3290 -3315
--------- ---------
Sub Total -667,598 -677,540
Credits:
Monthly social security payments 840,868 856,115
Training expenditures 0 4,755
Donations 0 1,575
Prepayment gains tax 0 1,166,120
--------- ---------
Sub Total Credits 840,868 2,028,565
Income tax to be recovered
Income credit, previous year 1,163,207 303,443
--------- ---------
Total taxes to be recovered 1,336,477 1,654,468
--------- ---------
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
DEFERRED TAXES
03-31-2002 03-31-2001
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 20,530 0 0 0 19,728 0 0 0
Expected revenue 0 0 0 0 0 0 0 0
Vacation reserve 34,759 0 0 0 36,685 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 0 0 4,091,264 0 0 0 3,168,235
Severance 1,724 32,759 0 0 1,360 25,842 0 0
Other events 0 94,947 0 0 0 81,523 0 0
Packaging reserve 212,756 0 0 0 178,658 0 0 0
Machinery repair reserve 163,775 0 0 0 51,198 0 0 0
Furnace repair reserve 178,405 544,631 0 0 0 869,183 0 0
Spare parts obsolescence
reserve 93,445 0 0 0 20,562 0 0 0
Refractories obsolescence
reserve 6,335 0 0 0 5,914 0 0 0
Deferred customs duties 24,736 0 0 0 0 0 0 0
Unrealized profit, building
sale 0 1,554 0 0 0 16,448 0 0
Accumulated depreciation
automobiles 0 5,568 0 0 0 5,565 0 0
Fixed asset, molds 0 0 0 262,410 0 0 0 141,778
OTHERS
Complementary accounts-net
amortization 15,736 131,141 0 2,699,536 88,785 356,199 0 2,748,194
Valuation reserve 0 0 0 0
Total 720,729 548,318 0 1,654,138 225,320 642,362 0 561,819
---------- --------- ---------- --------- ---------- --------- ---------- ---------
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
INCOME TAX
ITEM 03-31-2002 03-31-2001
Current tax costs (tax reserve) -664,308 -677,539
Adjustment tax cost (previous year) 0 0
Effect on assets or liabilities from
deferred tax of fiscal year -116,741 8,818
Tax benefit from tax losses 0 0
Effect of amortization of complementary
accounts of deferred assets and liabilities -37,535 16,611
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 -818,584 -652,110
07. Short-term and long-term leasing contracts and leasing assets
(note required only for leasing companies defined in circular No. 939 of 1990).
There are no elements for this item.
08. Other current assets
As of March 31, 2002, investments in financial instruments with resale
agreements, valued as stated in note 2 p) for Th Ch$2,042,359 are included
under this heading.
In March 2001 there was a balance of Th Ch$3,327,371 for investments in
Financial Institutions with resale agreement, and a balance of Th Ch$1,902,329
for Future Contracts.
09. 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 WITH PURCHASE COMMITMENT, SALE COMMITMENT,
BUY BACK AND RESELL BACK AGREEMENTS FOR NEGOTIABLE SECURITIES PURCHASE (CV)
AND SALE (CV) OPERATIONS
Dates
--------------- Original Price Market
Code Start End Counterpart Currency Set Rate Final Value Document ID Value
- ---- ----- --- ----------- -------- --- ---- ----------- ----------- -----
CV 03.25.2002 04.01.2002 BANCO DE CREDITO E Pesos 1,265,000 0.39 1,266,151 Zero Central Bank 1,265,987
INVERSIONES
CV 03.27.2002 04.01.2002 BANCHILE Pesos 776,000 0.36 776,466 PRC & Others 776,372
10. Fixed Assets
Fixed Assets:
The Fixed Assets are shown at purchase cost plus the legal and regulatory
revaluations accumulated as of March 31, 2002 and 2001.
The items that make up the Company's fixed assets as of March 31, 2002 and
2001 include mainly Land, Industrial Constructions, Infrastructure Works,
Machinery, and Equipment.
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$2,114,814 in 2002 and Th
Ch$1,714,611 in 2001.
The detail is shown on an attached chart.
NET ASSETS
2002 2001
Th Ch$ Th Ch$
------ ------
LAND
Land & mining claims 1,440,857 1,815,934
Subtotal land 1,440,857 1,815,934
Depreciation Mining Claims
Accrued
For the fiscal year
Subtotal dep. 0 0
*Subtotal land 1,440,857 1,815,934
CONSTRUCTIONS & INFRASTRUCTURE
High rises and industrial const. 12,305,503 10,938,850
Facilities 4,520,524 4,480,921
Housing developments 25,097 25,077
* 16,850,624 15,444,848
MACHINERY & EQUIPMENT
Furnaces 36,187,904 29,012,154
Machinery 51,596,512 41,108,327
Tools 341,626 340,995
Furniture and Materials 1,642,333 1,548,900
Vehicles 201,615 195,018
* 89,969,990 72,205,393
DEPRECIATION
Accrued -38,393,354 -36,729,011
For the fiscal year -1,872,205 -1,453,121
Subtotal depreciation -40,265,559 -38,182,132
Subtotal machinery & equip 49,704,431 34,023,262
OTHER FIXED ASSETS
Spare parts 4,543,559 4,732,651
Imports in transit 1,224,006 11,488,410
Works underway 2,279,114 7,521,339
Lots in Pirque and Leyda 454,776 454,399
Other 368,654 388,009
Subtotal other assets 8,870,109 24,584,808
TOTAL FIXED ASSETS 117,131,580 114,050,983
TOTAL ACCRUED DEPREC. -45,345,588 -43,031,745
TOTAL DEPREC FOR YEAR -2,071,245 -1,632,413
TOTAL NET FIXED ASSETS 69,714,747 69,386,826
TECHNICAL REVALUATION AND ADJUSTMENT OF ACCOUNTING VALUES
2002 2001
Th Ch$ Th Ch$
------ ------
LAND
Land 299,376 298,976
DEPRECIATION
Accrued prior fiscal years 0
Subtotal land and mining claims net 299,376 298,976
CONSTRUCTIONS & INFRASTRUCTURE
High rises and industrial constructions 5,986,133 5,981,045
Facilities 424,633 439,694
Subtotal Constructions 6,410,766 6,420,739
DEPRECIATION
Accrued prior fiscal years -4,830,803 -4,642,677
For the fiscal year -49,925 -49,884
Subtotal depreciations -4,880,728 -4,692,561
Subtotal constuctions net 1,530,038 1,728,179
MACHINERY AND EQUIPMENT
Furnaces 506,774 1,706,777
Machinery 970,022 1,737,964
Tools 52,341 52,298
Furniture and materials 13,906 13,895
Subtotal machinery & equipment 1,543,043 3,500,934
DEPRECIATION
Accrued prior fiscal years -1,543,043 -3,371,671
For the fiscal year -32,315
Subtotal depreciation -1,543,043 -3,403,986
Subtotal machinery & equip 0 96,948
Total Net Technical Revaluation 1,829,414 2,124,102
TOTAL 8,253,185 10,200,649
TOTAL ACCRUED DEPREC. -6,373,846 -8,014,348
TOTAL DEPREC FOR YEAR -49,925 -82,199
1,829,414 2,124,102
11. Sales transactions with leaseback
These type of transactions were not carried out as of March 31, 2002 and 2001.
12. 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 company
capital in the equivalent to UF 359,921 by issuing 343,750,000 shares that
were fully subscribed by Cristalchile. Of such subscription, the company has
paid 288,250,000 shares for an amount of UF 301,093.05 totaling a stake of
98.12% in the subsidiary.
ENVASES CMF S.A.
On June 29, 2001 a Special Stockholders Meeting of Crowpla Reicolite S.A. was
held where agreement was reached to increase the company's capital to Th
Ch$26,220,314,772 divided into 56,000 shares, by capitalizing Th Ch$1,755,219
from the Revaluation and Retained Earnings Fund, with the issue of 29,000 cash
shares equivalent to Th Ch$ 15,648,300.
Andina Inversiones Societarias S:A. subscribed and paid for 28,000 shares of
this issue, worth Th Ch$ 15,149,749.
Cristalerias de Chile S.A. subscribed and paid for 1,000 shares worth Th Ch$
498,552.
With the operations referred to above, the shareholding of Cristalerias de
Chile S.A. totals 28,000 shares, representing 50% of the equity of
Crowpla-Reicolite S.A.
The reduction in the percentage of Cristalchile's share in the equity of
Crowpla Reicolite S.A. as of June 30, 2001 produced a positive variation in
the calculation of the VPP of Th Ch$ 1,989,949 adjusted, which is included in
Other Non-Operating Income.
Subsequently the company's name was modified to Envases CMF S.A.
CRISTALCHILE INVERSIONES S.A.
This company was created on December 11, 2001 with the participation of
Cristalerias de Chile S.A., which holds 99.99% and the subsidiary CIECSA S.A.
with a 0.01%.
On December 28, 2001, the company sold to its subsidiary Cristalchile
Inversiones S.A., the investment it had in Rayen Cura S.A.I.C., a company
established in the city of Mendoza, Argentina in Th Ch$18,340,577. The
operation had no effect on results.
According to the provisions in Circular Letter 81 of the SVS dated 01/22/02,
the subsidiary adjusted the financial statements of Rayen Cura S.A.I.C. as of
December 31, 2001, considering a rate of exchange of 1.7 Argentine pesos per
US dollar, although no devaluation of the Argentine pesos with respect to the
dollar was recorded in the accounts in Argentina.
As of March 31, 2002, the financial statements of Rayen Cura S.A.I.C. has
acknowledged an exchange rate of 2.9 Argentine pesos per US dollar. On its
part the subsidiary Cristalchile Inversiones S.A., has adjusted the financial
statements of Rayen Cura S.A.I.C. in order to acknowledge the devaluation from
$1.7 to $2.9 per dollar.
The accounting charge against results, as a consequence of the devaluation of
the Argentine peso totaled Th Ch$1,709,343 as of March 31, 2002..
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 03-31-2002 03-31-2001 03-31-2002 03-31-2001
------ ------- ------ -------- ------ ---------- ---------- ---------- ----------
Cristalchile
96721580-5 Comunicaciones S.A. Chile Peso 101,213,160 99.9980 99.9900 75,946,786 82,856,193
S.A. Vina Santa
86547900-K Rita S.A. Chile Peso 493,959,797 54.0970 56.0600 71,021,718 65,559,028
86881400-4 Envases CMF S.A. Chile Peso 28,000 50.0000 99.9900 28,793,387 10,992,436
0-E Rayen Cura S.A. Argentina Dollar 0 0.0000 40.0000 0 27,632,061
966088270-4 Ciecsa S.A. Chile Peso 597,401,305 98.2105 96.6000 9,778,108 8,506,712
Inmobiliaria Don
96826870-8 Alberto S.A. Chile Peso 3,817 38.1700 38.1700 1,296 413,386
Constructora
96767580-6 Apoger S.A. Chile Peso 800,000 80.0000 80.0000 47,679 1,167,740
Inmobiliaira
96628620-2 Richelieu S.A. Chile Peso 70 0.0000 7.0000 0 19,561
Cristalchile
96972440-5 Inversiones S.A. Chile Peso 9,999 99.99 0.0000 -1,378,726 0
TOTAL
Net Result of Income not Book value
Income Accrual VPP Realized of Investment
R.U.T. 03-31-2002 03-31-2001 03-31-2002 03-31-2001 03-31-2002 03-31-2001 03-31-2002 03-31-2001 03-31-2002 03-31-2001
------ ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
96721580-5 -2,391,329 -2,417,262 -2,391,282 -2,417,214 75,945,267 82,854,555 0 0 75,945,267 82,854,555
86547900-K 1,016,538 963,805 549,916 521,390 38,420,619 35,465,474 0 0 38,420,619 35,465,474
86881400-4 277,969 146,311 138,984 145,263 14,396,694 10,990,814 0 0 14,396,694 10,990,814
0-E 0 208,567 0 0 0 11,052,824 0 0 0 11,052,824
966088270-4 -251,541 -874,907 -247,041 -858,584 9,603,129 8,347,576 -267,800 -299,136 9,335,329 8,048,440
96826870-8 -1,526 -7,512 -583 -2,868 495 157,790 0 0 495 157,790
96767580-6 -504 -5,733 -403 -4,586 38,143 934,192 0 0 38,143 934,192
96628620-2 0 59 0 5 0 1,369 0 0 0 1,369
96972440-5 -1,551,660 0 -1,551,505 0 0 0 0 0
138,404,347 149,804,594 -267,800 -299,136 138,136,547 149,505,458
13. Investments in other companies
14. At March 31, 2002 and 2001 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, 2002 totaled Th Ch$ 2,099,226 (Th
Ch$7,502,048 in 2001).
CRISTALERIAS DE CHILE S.A.
NOTE 16 - SHORTFALL AND GOODWILL ON INVESTMENTS
03-31-2002 03-31-2001
---------- ----------
Amount Amortiz. Shortfall Amount Amortiz. Shortfall
R.U.T. Company Name this period Value this period Value
------ ------------ ----------- ----- ----------- -----
96608270-4 Ciecsa S.A. 29,018 1,479,924 28,994 1,594,673
86881400-4 Envases CMF S.A. 0 0 6,624 125,856
0-E Rayen Cura S.A. 0 0 69,132 5,114,344
86547900-K S.A. Vina Santa Rita 12,010 619,302 11,614 667,175
TOTAL 41,028 2,099,226 116,364 7,502,048
15. Intangibles
At March 31, 2002 there are no values for these items, in March 2001 there is
a value of Th Ch$ 2,600 corresponding to a trademark.
16. Other (Assets)
As of March 31, 2002, the following is included in Other Long-term Assets:
1. The sum of Th Ch$9,059,690 for sale of Bonds of Celulosa Arauco equivalent
to US$13,420,000, at a rate of 6.95% annual with maturity on September 15,
2005. This value includes the amount of Th Ch$ 257,512 for the premium paid
for their purchase, which will be amortized in the Bond's same term.
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, therefore
no negative adjustment has been made to the market value which at March 31,
2002 totals Th Ch$130,625.
2. In addition the amount of Th Ch$200,624 for prepaid interests of Deferred
Custom duties in included.
As of March 31, 2001, there was a balance of Th Ch$133,094 for a difference in
favor of Cristalerias de Chile S.A., in future contracts in foreign currency
with long-term maturity.
17. Short-term liabilities with banks and financial institutions
a) Short-term liabilities with Banks and Financial Institutions (5.21.10.10).
As of March 31, 2002 and 2001, 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
Other Foreign
R.U.T. Bank or Financial Dollars Euros Yen Currencies U.F.
Institution 03-31-2002 03-31-2001 03-31- 03-31- 03-31- 03-31- 03-31- 03-31- 03-31- 03-31-
2002 2001 2002 2001 2002 2001 2002 2001
Short term (code: 5.21.10.10)
Long Term - Short Term (code: 5.21.10.20)
97036000-K Banco Santiago 0 35,655 0 0 0 0 0 0 0 0
0-E J.P Morgan Chase Bank 18,838,385 164,320 0 0 0 0 0 0 0 0
Others 0 0 0 0 0 0 0 0 0 0
TOTAL 18,838,385 199,975 0 0 0 0 0 0 0 0
Capital amount due 18,740,000 199,975 0 0 0 0 0 0 0 0
Average annual interest
rate 3.375 7.47 0 0 0 0 0 0 0 0
Percentage oblig. foreign curr. (%) 100.0000
Percentage oblig. foreign curr. (%) 0.0000
$ Non adjustable Total
03-31-2002 03-31-2001 03-31-2002 03-31-2001
0 0 0 35,655
0 0 18,838,385 164,320
0 0 0 0
0 0 18,838,385 199,975
0 0 18,740,000 199,975
0 0 0 0
18. Other Current Liabilities
As of March 31, 2002 there is a balance of Th Ch$ 3,518,931 in Other Current
Liabilities as detailed in note 34.
19. Long term liabilities with banks and financial institutions
The obligations with banks and financial institutions are presented on the
charts attached.
CRITALERIAS DE CHILE S.A.
NOTE 21: LONG-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS
Institution Maturity Years Closing date Closing date
Current period Previous period
Bank or Adjustment From 1 From 2 From 3 From 5 More than 10 years Total Long-Term Average Total Long-Term
R.U.T. Financial index to 2 to 3 to 5 to 10 Amount Term at closing of annual at closing of
Institution currency Financial interest Financial
M$ M$ M$ M$ M$ Statements rate Statements
0-E Chase Manhattan Bank Dollars 18,740,000 18,740,000 9,370,000 0 0 2,005 46,850,000 3.375% 60,984,425
Euros - - - - - - - - -
Yen - - - - - - - - -
UF - - - - - - - - -
Non-adj.CH$ - - - - - - - - -
Others - - - - - - - - -
Total 18,740,000 18,740,000 9,370,000 - - - 46,850,000 60,984,425
Porcentaje de obligaciones en moneda extranjera 100.00%
Porcentaje de obligaciones en moneda nacional 0.00%
20. Short-term and long-term obligations with the public
(promissory notes and bonds)
21. As of March 31, 2002 and 2001, there are no obligations with the public.
21. Reserves and Write-offs
Reserves:
As of March 31, 2002, the Company has short-term reserves of Th
Ch$6,445,196 and Th Ch$3,426,900 in 2001.
In the Long-term, reserves are recorded of Th Ch$6,902,679 and Th Ch$8,570,244
respectively.
Bad Debt Reserves:
The Company has established a reserve for bad debts of Th Ch$128,313, and Th
Ch$ 131,521, respectively, as of March 31, 2002 and 2001.
This reserve is deducted from the balance of debtors from sales.
No charges have been made against the reserve in the 2002 and 2001 fiscal
years.
Vacation Reserve:
The company has established a reserve for the total cost of vacations pending
as of March 31, 2002 and 2001, as established in Technical Bulletin No. 47 of
the Accountants Association of Chile. The net balance for this item is Th Ch$
220,955 as of March 31, 2002 (Th Ch$ 244,564 in 2001).
Reserve for Furnace Reconstruction:
This reserve is established throughout the useful life of the refractories of
each smelting furnace so their repair will not have a distort the result of
the fiscal year when the repairs are made.
The Company has established a reserve for this item in the amount of Th
Ch$4,413,876 and Th Ch$5,665,415 as of March 31, 2002 and 2001, respectively.
An itemized list of the amounts provided is shown in the attached chart.
Other Reserves:
A reserve is recorded in the amount of Th Ch$176,523 (Th Ch$176,510 in
2001) for the obsolescence of refractory bricks and spare parts, which is
deducted from the relevant assets.
Cristalerias de Chile S.A.
Note Reserves and Write-offs 03/31/2002 03/31/2001
Individual
Board Share 7,033 69,501
Board Share Prior Fiscal Year 710,824 698,732
Legal Bonus (27,833) (23,123)
Provision Indirect Cost 218,291 203,341
Furnace Reconstruction 1,115,030 587,991
Machinery Repair 1,007,849 341,317
Severance Pay 138,656 155,228
Packing for Client Return 1,142,646 1,135,682
Legal Holiday 220,955 244,564
Reserve Spare Parts 446,387 0
Reserve Subsidiary Losses 1,378,588 0
Other Reserves 86,770 13,667
Short Term 6,445,196 3,426,900
Severance Pay 3,603,833 3,492,821
Furnace Reconstruction 3,298,846 5,077,423
Long-Term 6,902,679 8,570,244
22. Severance Payments
The reserve for severance payments to personnel is included at its current
value, as expressed in note 2 r). In 2002 it totals Th Ch$3,742,489
(Th$3,648,049 in 2001)
As of March 31, 2002, the parent company has paid severance payments of Th
Ch$20,941 chargeable against the reserve. In the 2001 Fiscal Year no charges
have been made for this item.
23. Other long-term liabilities
As of March 31, 2002 and 2001 there are no balances for this item.
24. Minority interest
Not applicable to individual financial statements.
25. Changes in equity
a. Activity in 2002 and 2001
The activity of the capital and reserve accounts in the fiscal years
ended in March 31, 2002 and 2001, are shown in the attached charts.
The detail of this item is as follows:
2002 2001
Th Ch$ Th Ch$
Future capital increases 4,095,904 3,770,068
Reserve for adjustment of value of fixed assets 1,829,414 2,150,340
Adjustment for conversion difference in
investment in Rayen Cura S.A.I.C. 2,293,616 1,178,189
Difference VPP Sodex (208,960) (208,787)
------------ -----------
TOTAL OTHER RESERVES 8,009,974 6,889,810
Accumulated Deficit for the Development Period
The negative variation in equity experimented by the company results from the
application of the VPP method carried out by CIECSA S.A. in its subsidiary
Simetral S.A., which was in a stage of development until December 31, 2001,
and its expenditures correspond to pre-operating activities. In accordance
with provisions in Circular Letter 981 of the Insurance and Securities
Commission, this deficit is treated as an accumulated loss.
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NET WORTH
Reserve Premium Reserve Devel. Fiscal
Paid-in capital in sale of Other Future Accumulated Provisional Period Year
Capital revaluation shares Reserves Dividends Results Dividends Deficit Result
Balances as of 03-31-2002
Initial balance 62,863,356 0 26,794,558 7,942,919 102,798,113 0 0 (123,129) 0
Distribution result previous
fiscal year 0 0 0 0 0 17,770,611 0 0 0
Final dividend previous fiscal
year 0 0 0 0 0 (4,657,728) 0 0 0
Capital increases with cash
stock issue 0 0 0 0 0 0 0 0 0
Reserves and/or Profits
Capitalization 0 0 0 0 0 0 0 0 0
Development period Accumulated
deficit 0 0 0 0 0 0 0 0 0
Accumulated conversion
difference adjustment 0 0 0 98,828 0 0 0 0 0
Eventual Dividend 0 0 0 0 0 0 0 0 0
Owner's equity Revaluation 0 (251,453) (107,180) (31,773) (411,190) (52,451) 0 493 0
Fiscal Year Result 0 0 0 0 0 0 0 0 175,829
Provisional Dividends 0 0 0 0 0 0 0 0 0
Final balances 62,863,356 (251,453) 26,687,378 8,009,974 102,386,923 13,060,432 0 (122,636) 175,829
Balances as of 03-31-2001
Initial balance 60,973,187 0 25,998,901 6,166,094 91,287,846 0 0 (107,536) 0
Distribution result previous
fiscal year 0 0 0 0 0 17,042,239 0 0 0
Final dividend previous fiscal
year 0 0 0 0 0 (4,156,672) 0 0 0
Capital increases with cash
stock issue 0 0 0 0 0 0 0 0 0
Reserves and/or profit
Capitalization 0 0 0 0 0 0 0 0 0
Development period accumulated
deficit 0 0 0 0 0 0 0 (55,488) 0
Accumulated conversion difference
adjustment 0 0 0 549,506 0 0 0 0 0
Eventual Dividend 0 0 0 0 0 0 0 0 0
Owner's equity revaluation 0 60,973 25,988 6,166 91,288 12,885 0 (108) 0
Fiscal Year Result 0 0 0 0 0 0 0 0 1,695,160
Provisional Dividends 0 0 0 0 0 0 0 0 0
Final balances 60,973,187 60,973 26,024,889 6,721,766 91,379,134 12,898,452 0 (163,132) 1,695,160
Updated balances as of 3/31/01 62,497,517 62,496 26,665,262 6,889,810 93,663,612 13,220,914 0 (167,210) 1,737,539
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NETWORTH - DEFICIT ACCUMULATED IN DEVELOPMENT PERIOD OF
SUBSIDIARY
AMOUNT
RUT COMPANY FISCAL YEAR ACCUMULATED COMMENTS
- ------------ --------------- ----------- ----------- ---------------------
96.939.140-6 SIMETRAL S.A. 122,636 122,636 IN DEVELOPMENT PERIOD
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN EQUITY - NUMBER OF SHARES
No.
No. No. SHARES
SHARES SHARES WITH VOTING
SERIES SUBSCRIBED PAID RIGHT
- ------------------- ------------ ---------- -------------
SINGLE 64,000,000 64,000,000 64,000,000
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NETWORTH - CAPITAL (AMOUNT - TH CH$)
SUBSCRIBED PAID-IN
SERIES CAPITAL CAPITAL
- ---------------------------------------- ------------- ------------
SINGLE 62,863,356 62,863,356
26. Other Non-operating Income and Disbursements
As of March 2002 non-operating income totaled Th Ch$92,445 in 2002 and Th Ch$
86,272 in 2001.
Non-operating disbursements amounted to Th Ch$147,534 in 2002 and Th Ch$82,501
in 2001.
NOTE 28: NON-OPERATING INCOME AND EXPENSES
INDIVIDUAL
2002 2001
-------- --------
Thou Ch$ Thou Ch$
Material Sales 6,789 6,515
Lease of Offices and Business Premises 53,793 69,027
Miscellaneous Income 23,984 2,860
Amortization of Unrealized Income 7,879 7,872
Total Non-Operating Income 92,445 86,273
Professional advisory services 155,068 76,427
Insurance 3,874 2,607
Other expenses -11,408 3,467
Total Non-Operating Expenses 147,534 82,501
27. 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 2002 and 2001 fiscal year
of Th Ch$84,355 and Th Ch$92,445, respectively.
CRISTALERIAS DE CHILE S.A.
NOTE 29: ADJUSTMENT FOR PRICE LEVEL RESTATEMENTS
Adjustability
Assets (Debits)/Credits Index 03-31-2002 03-31-2001
------------- ------------- -----------
Inventory IPC (61,846) 19,763
Fixed Asset IPC (283,991) 53,585
Investments in Related Companies IPC (571,391) 12,826
Marketable Securities IPC (13,078) 11,919
Time Deposits IPC -- 4,115
Short Term Debtors IPC (640) 205
Accounts Receivable Related Companies IPC (84,426) 3,212
Long-Term Debtors IPC (243) 367
Other Non-Monetary Assets IPC (1,964) 174,128
Expense and Cost Accounts IPC (2,901) (8,315)
Total (Debits)/Credits (1,020,480) 271,805
Liabilities (Debits)/Credits
Net Worth IPC 853,555 (202,124)
Short-Term Bank Loans IPC 74,853 --
Accounts Receivable Related Companies IPC 149 51
Short-Term Reserves IPC (4,500) (5,245)
Long-Term Bank Loans IPC 187,083 --
Long-Term Creditors IPC 231 (163)
Long-Term Reserves IPC (15,684) (28,681)
Non-Monetary Liabilities IPC 4,193 --
Income Accounts IPC 4,975 13,182
Total (Debits)/Credits 1,104,855 (222,980)
(Loss) Profit From Adjustment For Price Level Restatement 84,355 48,825
28. Difference in Exchange
A net charge against results was made because of exchange rate difference of
Th Ch$236,591 in 2002 and a net credit of Th Ch$196,004 in 2001.
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 on the table attached.
CRISTALERIAS DE CHILE S.A.
NOTE 30: EXCHANGE DIFFERENCES
Item Amount
------------------------------
Currency 03-31-2002 03-31-2001
-------- ---------- ----------
Current Assets Dollars 429 3,678
Time Deposits Dollars (10,093) 604,296
Inventory Dollars (12,361) 90,560
Other Assets Dollars 9,508 517,440
Total (Debits) Credits (12,517) 1,215,974
Short-Term Bank Loans Dollars (106,547) (1,254)
Notes Payable Dollars (48,153) (540,257)
Notes Payable Other Currency 5,193 (8,002)
Sundry Debtors - Long Term Dollars -- (2,157)
Long-Term Bank Loans Dollars (66,170) (331,576)
Short-Term Reserves Dollars (1,887) --
Long-Term Reserves Dollars (4,601) (136,724)
Sundry Creditors - Long Term Dollars (1,909) --
Total (Debits) Credits (224,074) (1,019,970)
(Loss) Profit From Exchange Difference (236,591) 196,004
29. Extraordinary Items
As of March 31, 2001, a partial reversion of the reserve for the repair of
Furnace C was acknowledged in the amount of Th Ch$975,800, net of taxes.
As of March 31, 2002, there are no transactions for this item.
30. Expenses incurred in the sale of shares and debt instruments
As of March 31, 2002 and 2001, there are no expenses recorded in this item.
31. Cash Flow Statement
An itemized list is included in the attached chart.
CRISTALERIAS DE CHILE S.A.
CASH FLOW STATEMENT
1. The following it the detail of the item: OTHERS:
2002 2001
-------- --------
Th Ch$ Th Ch$
541.11.80 Other expenses paid
Exchange difference 62,527 93,250
Donations 18,853 11,174
Other expenses 73 7,478
Total 81,458 111,902
541.13.15 Sale of other investments
LP bond share 174,681 -
Sale of PRC - 1,258,617
Redemption Time Dep. over 90 days 4,756,872 -
Total 4,931,553 1,258,617
541.13.30 Other investment income
Maturity of future contracts 1,223,646 500,867
541.13.65 Other investment made
Purchase of shares - 17,270
Future contracts 336,681 -
Total 336,681 17,270
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 149 (4,230,400) April-02
Amounts payable investment (576,123) April-02
Amounts payable investment (271,857) May-June 02
TOTAL (5,078,380)
32. Derivative Contracts
FUTURE CONTRACTS IN FOREIGN CURRENCY
The parent company has signed future contracts in foreign currency of Th US$
119,600 in 2002 (Th US$ 114,600 in 2001) 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, 2002 there was a difference in favor of the financial
institutions of Th Ch$3,518,931, which is presented in Other Current
Liabilities.
As of March 31, 2001 there was a difference in favor of the company of Th
Ch$1,902,329, which is presented in Other Current Assets.
CRISTALERIAS DE CHILE S.A.
NOTE 34: DERIVATIVE CONTRACTS
Description Of Contracts Accounts Affected
------------------------------------ ----------------------------------------
Protected Item Or
Transaction Assets/Liabilities Effect on Result
Maturity Or Purchase/ ------------------ Value Of ------------------ ------------------
Type Of Type Of Value Of Expiration Specific Sale Protected Not
Derivative Contract Contract Date Item Position Name Amount Item Name Amount Realized Realized
- ---------- -------- -------- ---- ---- -------- ---- ------ ---- ---- ------ -------- --------
SECOND EXCHANGE DOLLAR
FR CI 1,758,214 2002 RATE C LOAN 1,758,214 1,967,700 ASSETS 209,486 209,486 0
THIRD EXCHANGE DOLLAR
FR CI 40,196,632 2002 RATE C LOAN 40,196,632 38,042,200 LIABILITIES 2,154,432 -2,154,432 0
FOURTH EXCHANGE DOLLAR
FR CI 22,656,047 2002 RATE C LOAN 22,656,047 21,412,930 LIABILITIES 1,243,117 -1,243,117 0
FIRST EXCHANGE DOLLAR
FR CI 16,106,396 2003 RATE C LOAN 16,106,396 16,397,500 LIABILITIES 304,703 -304,703 0
SECOND EXCHANGE DOLLAR
FR CI 2,649,764 2003 RATE C LOAN 2,649,764 2,623,600 LIABILITIES 26,164 -26,164 0
CRISTALERIAS DE CHILE S.A.
Foreign Currency Forward Contracts Analysis as of 03.31.2002
Date Future Value Future Value Profit
------------------------ ------------ ------------ ------
Institution Investment Expiry UF US$ Thou Ch$
Banco de Chile 03.26.2002 03.19.2003 205,069 5,000,000 (72,717)
Banco de Chile 03.26.2002 03.19.2003 204,905 5,000,000 (72,680)
BCI 03.26.2002 03.26.2003 204,864 5,000,000 (72,680)
Banco Santander 03.13.2002 04.08.2003 162,826 4,000,000 (26,164)
Citibank 02.28.2001 05.15.2002 108,668 3,000,000 209,486
Deutsche Bank
(Chile) S.A. 03.28.2001 03.28.2003 373,500 10,000,000 509,179
Minus: Credit
09.26.2001
Deutsche (932,486)
Plus: Debit
03.27.2002 336,680
Deutsche Bank
(Chile) S.A. 07.20.2001 07.22.2002 413,114 10,000,000 (147,933)
Banco Boston 09.12.2001 09.11.2002 170,926 4,000,000 (147,534)
Banco Boston 09.13.2001 09.12.2002 213,486 5,000,000 (166,205)
Banco A. Edwards 09.06.2001 09.05.2002 208,768 5,000,000 (95,257)
Banco A. Edwards 09.28.2001 09.27.2002 174,155 4,000,000 (189,034)
Banco Santander 09.27.2001 09.26.2002 174,180 4,000,000 (187,003)
Banco Santander 09.27.2001 09.26.2002 174,146 4,000,000 (186,716)
Banco Santander 09.27.2001 09.26.2002 217,595 5,000,000 (232,675)
Banco Santander 10.02.2001 10.01.2002 264,788 6,000,000 (335,926)
Banco Santander 10.03.2001 10.03.2002 219,070 5,000,000 (243,618)
Banco Santiago 09.21.2001 09.24.2002 217,396 5,000,000 (228,928)
Chase Manhattan Bank 09.20.2001 09.23.2002 217,911 5,000,000 (236,463)
Banco A. Edwards 10.01.2001 09.30.2002 87,128 2,000,000 (93,066)
Banco A. Edwards 10.02.2001 10.02.2002 261,238 6,000,000 (279,641)
Banco A. Edwards 10.10.2001 10.09.2002 179,011 4,000,000 (258,383)
Banco A. Edwards 10.16.2001 10.16.2002 88,522 2,000,000 (113,425)
JP Morgan Chase 11.27.2001 12.04.2002 209,880 5,000,000 (85,926)
JP Morgan Chase 11.28.2001 12.11.2002 280,177 6,600,000 (120,617)
Banco Santiago (US$/EURO) 12.19.2001 12.18.2002 3,121,650 3,500,000 (49,200)
TOTAL 123,100,000 (3,518,932)
35. Contingencies and Restrictions
CONTINGENCIES AND COMMITMENTS
As of March 31, 2002, there is a guarantee furnished in the amount of Th Ch$
6,790 and Th Ch$6,789 in 2001, according to the detail on the attached chart.
LAWSUITS OR OTHER LEGAL ACTIONS THE COMPANY IS INVOLVED IN
As of March 31, 2002 and 2001 there are no pending lawsuits or other legal
actions.
OTHER CONTINGENCIES
As of March 31, 2002 and 2001 the administration is not aware of any other
contingencies that might affect the Company.
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - DIRECT GUARANTEES
Creditor Of Type Of
Guarantee Debtor Guarantee Assets Committed Balances Pending Release Of Guarantees
Name Relationship Type Book Payment As Of Closing Date
Value Of Financial Statements
03-31- 03-31- 03-31- 03-31- 03-31-
2002 2001 2003 ASSETS 2004 ASSETS 2005 ASSETS
EDIFICIO CRISTALERIAS
METROPOLIS AGF DE CHILE S.A. COMMERCIAL DEPOSIT FLOOR 7,593 7,593 6,789 0 0 0 0 7,593 0
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - INDIRECT GUARANTEES
Creditor Of Type Of
Guarantee Debtor Guarantee Assets Committed Balances Pending Release Of Guarantees
Name Relationship Type Book Payment As Of Closing Date
Value Of Financial Statements
03-31- 03-31- 03-31- 03-31- 03-31-
2002 2001 2003 ASSETS 2004 ASSETS 2005 ASSETS
Societe de
Participations Rayen Cura S.A. Affiliate Solidary 0 0 3,777,984 3,512,703 755,596 0 755,596 0 2,266,792 0
Financieres et
Industrielles
36. Guarantees obtained from third parties
As of March 31, 2002 and 2001 the company has received guarantees from third
parties, which are shown below:
ITEM 2002 2001
---- ------ ------
Th Ch$ Th Ch$
Real Estate Lease Bank Boston 367,690 UF 5,959 5,963
Real Estate Lease to Telecomunicaciones 0 0
Cono Sur Ltda. (130 UF) 2,106 2,107
Lease Real Estate Office 202 AGF Building 3,806 3,809
Suppliers Sight Drafts 1,241 1,273
TOTAL 13,113 13,152
37. Local and Foreign Currency
Charts are attached showing the foreign currency balance as of March 31, 2002
and 2001.
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - ASSETS
ITEMS Currency Amount
- ----------------------------------- ---------------- -----------------------------
03-31-2002 03.31-2001
---------- ----------
Current Assets
CASH Non-adjust. Ch$ 1,585,542 910,262
CASH Dollars 103,567 97,658
TIME DEPOSITS Dollars 14,028,175 19,312,481
TIME DEPOSITS Adjustable Ch$ - 1,261,108
TIME DEPOSITS Non-adjust. Ch$ 3,015,640 -
MARKETABLE SECURITIES Adjustable Ch$ 3,264,180 5,761,877
MARKETABLE SECURITIES Dollars 9,960,793 -
MARKETABLE SECURITIES Non-adjust. Ch$ 52,678 2,266,504
DEBTORS FROM SALES Non-adjust. Ch$ 13,928,600 12,650,109
DOCUMENTS RECEIVABLE Non-adjust. Ch$ 2,589,150 1,374,775
MISCELLANEOUS DEBTORS Adjustable Ch$ 311,412 -
MISCELLANEOUS DEBTORS Non-adjust. Ch$ 130,010 520,043
MISCELLANEOUS DEBTORS Dollars 8,756 6,699
DOC.&ACTS. REC. REL. CO'S. Adjustable Ch$ 614,150 1,525,245
DOC.&ACTS. REC. REL. CO'S. Dollars - 61,879
DOC.&ACTS. REC. REL. CO'S. Non-adjust Ch$ 1,975,093 1,248,257
STOCK Adjustable Ch$ 6,050,612 6,784,624
REFUNDABLE TAX Non-adjust Ch$ 1,336,477 1,654,468
EXPENSES PAID IN ADVANCE Dollars 104,750 23,115
EXPENSES PAID IN ADVANCE Adjustable Ch$ 147,299 41,090
DEFERRED TAXES Non-adjustable Ch$ 720,729 225,320
OTHER CURRENT ASSETS Non-adjustable Ch$ 2,042,359 3,327,371
OTHER CURRENT ASSETS Dollars - 1,902,329
Fixed Assets
FIXED ASSETS Adjustable Ch$ 71,544,161 71,510,927
Other Assets
INVESTMENT REL. CO'S. Adjustable Ch$ 138,136,547 149,505,458
NEG. INVESTMENT GOODWILL Adjustable Ch$ 2,099,226 7,502,048
LONG-TERM DEBTORS Adjustable Ch$ 179,489 103,811
L-T DOC. REC. REL. CO'S. Adjustable Ch$ 20,475,637 2,842,463
INTANGIBLES Adjustable Ch$ - 2,600
DEFERRED TAX Non-adjustable Ch$ - 80,543
MISCELLANEOUS Dollars 9,260,315 133,094
Total Assets
Non-adjust. Ch$ 27,376,278 24,257,652
Dollars 33,466,356 21,537,255
Adjustable Ch$ 242,822,713 246,841,251
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - CURRENT LIABILITIES
ITEM Currency Up to 90 days 90 Days to 1 Year
----------------------------------------- --------------------------------------------
03-31-2002 03-31-2001 03-31-2002 03-31-2001
------------------- ----------------- ------------------ ---------------------
Avg. Avg. Avg. Avg.
Amount Annual Amount Annual Amount Annual Amount Annual
-------- ------- -------- -------- -------- -------- -------- --------
Thou Ch$ Int. Rate Thou Ch$ Int. Rate Thou Ch$ Int. Rate Thou Ch$ Int. Rate
Current Liabilities
Long-Term Obligations Dollars 18,838,385 3.375 199,975 7.47 0 0 0 0
1-year maturity
Long-Term Obligations Dollars 0 0 - 0 0 0 0 0
1-year maturity
Dividend Payable Non-adjust. Ch$ 67,100 0 50,946 0 0 0 0 0
Accounts Payable Non-adjust. Ch$ 1,824,364 0 1,317,267 0 0 0 0 0
Documents Payable Dollars 2,141,414 0 10,447,770 0 0 0 0 0
Documents Payable Other Currencies 303,976 0 643,478 0 0 0 0 0
Miscellaneous Creditors Non-adjust. Ch$ 476,740 0 496,100 0 0 0 0 0
Doc. and Accts.
Payable rel Co Adjustable Ch$ 23,322 0 12,714 0 0 0 0 0
Doc. and Accts. Payable
rel Co Non-adjust. Ch$ 230,150 0 112,231 0 0 0 0 0
Reserves Adjustable Ch$ 0 0 - 0 138,656 0 155,228 0
Reserves Dollars 0 0 - 0 1,115,030 0 587,991 0
Reserves Non-adjust. Ch$ 5,191,510 0 2,683,681 0 0 0 0 0
Withholding Non-adjust. Ch$ 942,013 513,871 0 0 0 0 0
Other Current Liabilities Adjustable Ch$ 3,518,931 0 - 0 0 0.00 0 0
Total Current Liabilities
Dollars 20,979,799 10,647,745 1,115,030 587,991
Non-adjust. Ch$ 8,731,877 5,174,096 0 0
Other Currencies 303,976 643,478 0 0
Adjustable Ch$ 3,542,253 12,714 138,656 155,228
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES CURRENT
PERIOD 03-31-2002
ITEM Currency 1-3 Years 3-5 years 5-10 Years More than 10 years
- -------------------------- -------- ----------------------- --------------------- --------------------- ----------------------
Amount Average Amount Average Amount Average Amount Average
--------- ------------ -------- ------------- ------- ------------ -------- -------------
Thou Ch$ Interest Rate Thou Ch$ Interest Rate Thou Ch$ Interest Rate Thou Ch$ Interest Rate
Obligations with Banks and Dollars 37,480,000 7.60 - 0.00 0 0 0 0
Financial Institutions
Deferred Custom Duties Dollars 392,541
Long-term Creditors Adjust. Ch$ 57,530 0.00 - 0.00 0 0 0 0
Long-term Reserves Dollars 3,298,846 0.00 - 0.00 0 0 0 0
Long-term Reserves Adjust. Ch$ 3,603,833 0.00 - 0.00 0 0 0 0
Deferred Taxes Non-adjust. Ch$ 1,105,824 6.69 - 0.00 0 0 0 0
Total Long-term
Liabilities
Dollars 41,171,387 - 0.00 0 0 0
Adjust. Ch$ 3,661,363 - 0 0
Non-Adjust. Ch$ 1,105,824 - 0 0
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES PREVIOUS PERIOD
03-31-2001
ITEM Currency 1-3 Years 3-5 years 5-10 Years More than 10 years
- ------------------------ -------- ----------------------- --------------------- --------------------- ----------------------
Amount Average Amount Average Amount Average Amount Average
--------- ------------ -------- ------------- ------- ------------ -------- -------------
Thou Ch$ Interest Rate Thou Ch$ Interest Rate Thou Ch$ Interest Rate Thou Ch$ Interest Rate
Obligations with banks Dollars 34,848,244 7.43815 26,136,181 7.43815 0 0 0 0
and financial
institutions
Sundry creditors Adjustable Ch$ 59,488 0 0 0 0 0 0 0
Sundry creditors Dollars 606,703 11.06 624,106 11.06 0 0 0 0
Long-term Reserves Adjust. Ch$ 3,492,821 0 0 0 0 0 0 0
Long-term Reserves Dollars 5,077,423 0 0 0 0 0 0 0
Total Long-term
Liabilities
Dollars 40,532,370 26,760,287 0 0
Adjust. Ch$ 3,552,309 0 0 0
38. Penalties
In the 2002 and 2001 fiscal years no penalties have been applied to the
company, the Members of the Board or Company Managers by the SVS or other
administrative authorities.
39. Subsequent Events
In the Special Shareholders' Meeting held on April 16, 2002, the following
agreements were reached:
1. The Board of Directors was authorized to name the company Langton Clarke -
Auditores Consultores Limitada or in its defect, Price Waterhouse Coopers, as
external auditors, depending on the best price alternative for Cristalerias de
Chile S.A.
2. Name the newspaper "El Diario" as the written media to publish summons to
meetings.
3. Distribute Dividend No. 149 of $66.10 per share, which will be paid as from
April 26, 2002.
4. The dividend policy adopted for 2002 was to distribute 50% of the fiscal
year's profits.
5. Give the Board of Directors the power to make agreements and distribute
provisional dividends to be charged against fiscal year profits. Also, it was
authorized, without calling a General Shareholders' Meeting, to agree the
payment of eventual dividends to be charged against previous fiscal year
profits.
Capital Increase of Rayen Cura S.A.I.C.
On April 22, the company made a loan of UF 229,729.92 to the subsidiary
CristalChile Inversiones S.A., which the latter used for a capital increase of
its associated company Rayen Cura S.A.I.C. of US$5,760,000, thereby
maintaining a 40% stake in that company.
40. Environment
ENVIRONMENT
In its permanent concern commitment to preserve the environment, as of March
2002 the Company has made investments of Th Ch$ 157,468 for the repair of an
electrostatic precipitator to filter the gases issued by our smelting
processes. The company thereby would continue under the emission norms for
particulate material issued by the supervisory agencies.
41. TIME DEPOSITS
At March 31, 2002 and 2001 the Company presents the following information:
INSTITUTION Currency 2002 2001
- ---------------------------- ---------------- --------------- ---------------
Th Ch$ Th Ch$
Babco Credito e Inversiones US$ 35,709,902 286,825
Banco Scotiabank US$ 8,318,273 0
Banco Santander N. York US$ 0 12,247,977
Banco Bilbao Viscaya New York US$ 0 2,488,190
Banco Santiago US$ 0 4,290,389
Banco Santiago $ 3,015,640 1,262,108
------------- -------------
TOTAL 17,043,815 20,573,589
============= =============
42. STOCK TRANSACTIONS
During the 2002 and 2001 fiscal years Board Members, controlling stockholders,
and related individuals and entities did not carry out any stock transactions:
43. DISTRIBUTION OF SHAREHOLDERS
The distribution of stockholders as of March 31, 2002 and 2001 is the
following:
% of Shareholding No. of Shareholders
--------------------------- ------------------------------
TYPE OF SHAREHOLDER 2002 2001 2002 2001
10% or more shareholding 34.03 45.88 1 2
Less than 10% shareholding with
investment equal to or higher
than 200 UF 65.81 53.95 257 236
Less than 10% shareholding with
investment lower than 200 UF 0.16 0.17 833 856
TOTAL 100.00 100.00 1,091 1,094
CONTROLLER OF THE COMPANY 52.14 52.14 3 3
44. BOARD COMPENSATION
During the years 2002 and 2001 reserves were made for the profit sharing of
the fiscal year in the amount of Th Ch$717,857 and Th Ch$698,732,
respectively, according to the following detail:
2001 2000
-------------- ------------
Th Ch$ Th Ch$
Profit sharing
previous fiscal year 710,824 698,732
Reserve for the year 7,033 69,502
---------- ----------
TOTAL 717,857 768,234
CRISTALERIAS DE CHILE S.A.
NOTES TO FINANCIAL STATEMENTS AS OF MARCH 31, 2002 AND 2001
1. FINANCIAL INDICATORS
---------------------
03-31-2002 03-31-2001 12-31-2001
LIQUIDITY
Current liquidity times 1.78 3.54 2.35
Acid ratio times 1.54 3.03 2.01
DEBT
Debt ratio times 0.43 0.43 0.43
Short-term debt % 38.30% 19.60% 27.90%
Long-term debt % 61.70% 80.40% 72.10%
Coverage of interest expenses times 1.86 1.76 5.46
ACTIVITY
Total assets Mill Ch$ 303,665 292,636 303,480
Investments Mill Ch$ 2,647 8,726 28,230
Disposal of property Mill Ch$ 3 3 1,339
Inventory turnover times 7.1 6.6 7.1
Inventory permanence days 50.6 54.3 50.7
PROFITS (LOSSES)
Operating income Mill Ch$ 15,090 14,295 65,520
Operating costs Mill Ch$ 9,097 8,870 39,643
Operating profit Mill Ch$ 4,956 4,403 20,658
Financial expenses Mill Ch$ 648 1,138 3,917
Non-operating result Mill Ch$ -3,961 -2,989 -1,409
R.A.I.I.D.A.I.E. Mill Ch$ 3,361 3,833 29,578
After-tax profit Mill Ch$ 176 1,738 17,700
RATE OF RETURN
Return on equity % 0.10% 0.90% 8.50%
Return on assets % 0.10% 0.60% 6.00%
Return on operating assets % 5.20% 5.00% 22.90%
Profit per share $ 2.7 27.1 276.6
Return on dividends % 3.20% 3.50% 3.10%
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.
Coverage of Interest Expenses: Profit 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.
R.A.I.I.D.A.I.E.: Profit before taxes, interest, depreciation, amortization, and
special items.
Return on dividendes: Sum of dividends paid in the last twelve months divided by market
price of stock at closing of period.
The main trends observed in the 2002 fiscal year indicators are:
LIQUIDITY INDICES
There is a reduction in the liquidity index in relation to March 2001 despite
a significant reduction in notes payable, because of the transfer to the short
term of long-term syndicated loan installment, the increase in reserves, and
the effect on bank loans in dollars of the rise in the price of the dollar,
which rose by 10.2% between April 2001 and March 2002.
DEBT INDICES
Although the debt index has had a slight increase because of the rise in the
rate of exchange, this financial index remained steady during the periods
studied because of the increase in equity resulting from the increase in
profits.
On the other hand, the distribution of the short-term and long-term debt shows
variations due to the expiry of installments payable in less than one year of
Long Term Liabilities that have been transferred to Short Term.
The coverage index of financial expenses fell with respect to the previous
year because of lower profits.
ACTIVITY INDICES
The indices of inventory turnover and permanence improved because of the
stocks bought by management to reduce product stock inventories.
PROFITABILITY INDICES
Profitability indices fell during the fiscal year because of a reduction in
profits.
On the other hand, although dividends distributed between April 2000 and March
2001 rose by 8.1% compared to the January/December 2001 period, the rate of
return of dividends dropped because of the increase in the price of stocks in
the stock exchange, which rose from $3,512 per share as of March 31, 2001, to
$4,300 per share as of December 31, 2001.
2. DIFFERENCE BETWEEN BOOK VALUE AND MARKET VALUE OF MAIN ASSETS
-------------------------------------------------------------
The financial statements of the company have been prepared according to
generally accepted accounting principles and general and specific norms of the
Securities and Insurance Commission, which is the agency that regulates the
Company. The valuation of the assets includes adjustment for currency
devaluation, reserves, and technical revaluations. We believe the foregoing is
a reasonable way to value the company's permanent investments.
As of March 31, 2002, there were financial investments in stocks recorded in
the accounting according to their purchase price of Th Ch$ 3,264 million whose
market value on the same date was Th Ch$ 5,761 million.
3. RESULTS OF THE FIRST QUARTER OF 2002
------------------------------------
3a. Individual Result
The Company had non-consolidated sales of Ch$ 15,090 million as of March 2002,
which is a 5.6% increase compared to the previous fiscal year. Volumes sold
increased by 5.3%, reaching 53,922 tons. This volume level is mainly due to
higher sales of bottles for the non-returnable beer and wine markets.
Operating profit rose by 12.6%, totaling Ch$4,956 million. For comparison
purposes the operating margin increased due the lower sale of lower-margin
imported products compared to the first quarter of 2001.
The Company's net profit amounted to $176 million compared to $1,738 million
the previous year. This result can be explained in part by the reduction in
the non-operating result, which passed from a loss of $2,989 million in 2001
to a loss of $3,961 million in 2002. This greater loss results from the effect
of the devaluation of the Argentine peso (from $1.7 to $2.9 Argentine pesos
per dollar) in the accounting of the financial statements of Rayen Cura, which
generated a loss of $1,477 million for the quarter. This was compensated in
part in Vina Santa Rita and CIECSA. In addition, in the year 2001 the company
had an extraordinary income of Ch$976 million corresponding to the reversion
of the reserve for the repair of Furnace C, included in the account
"Extraordinary Items".
Finally, the company reflects a special contribution of Ch$ 1,785 million for
the reverse of the reserve for repair of Furnace C, which is included in the
"Special items" account.
3b. Result in Subsidiaries
As of March 31, 2002, Santa Rita's profit was Ch$1,016 million, which was a
5.4% increase over the same period in 2001. In the local market, the volumes
of the Company were 17% higher than in 2001. The prices in this market dropped
20.4% in real terms, as a result of increased competition and lower cost of
musts, which led to valued sales in the local market dropping 6.9%. Sales in
the export market decreased 7.1% in volume due to lower sales to the European
and Latin American markets. During the period, exports represented 52% of
total income with US$ 9.9 million. The operating result fell 30.4%, reaching
Ch$1,492 million, mainly as a result of the fall in prices in the local market
and the reduction in volumes in the export market. The average price in
dollars per case for the export market was US$ 29.6, whereas the average price
for the industry was US$22.05 per case. As of March 2002, Santa Rita showed a
non-operating loss of Ch$261 million, compared to a loss of Ch$817 million in
2001, which can be mainly explained by lower financial costs.
Megavision, the main subsidiary of CIECSA, showed an operating profit of Ch$41
million, compared with an operating loss of Ch$591 million in the previous
year. Megavision had a
22.4% share of the audience during the period.1 Net sales increased by 26.2%
totaling Ch$3,626 million because of the live programs. As of March 2002,
Megavision had a net loss of Ch$187 million, compared to a loss of Ch$791
million in 2001. CIECSA improved its non-operating results passing from a loss
of Ch$543 million in 2001 to loss of Ch$361 in 2002, due mainly to lower
losses in its subsidiaries. CIECSA's final result was a loss of Ch$252 million
compared to a loss of Ch$875 million the year before.
Envases CMF S.A. showed a net profit of Ch$278 million in 2002 compared with a
profit of Ch$146 million in 2001 (this last figure considers only the result
of Crowpla-Reicolite before its association to Multipack). The company
increased its sales 131%, reaching Ch$8,341 million during the year. This
significant increase in sales is largely attributable to the partnership
entered into with Multipack at the end of June 2001. Sales volume increased
109%, reaching 5,950 tons. Operating profit was Ch$805 million, which is 126%
higher than the profit obtained during 2001.
In the area of cable TV, Cristalchile Comunicaciones S.A. (99.99% subsidiary
of Cristalerias), is the owner of 50% of Cordillera Comunicaciones Ltda.,
which in turn is the owner of 99% of Metropolis-Intercom S.A.
Metropolis-Intercom S.A. registered sales of Ch$11,372 million during 2002
compared with Ch$10,681 million during the same period the previous year. As
of March 2002, Metropolis-Intercom had a net loss of Ch$3,777 million compared
with a loss of Ch$3,959 million in 2001. This result includes a depreciation
charge of Ch$2,683 million (Ch$2,863 million in 2001) corresponding to the HFC
network acquired in July 2000. The company ended the period with 247,000
subscribers, 10.5% down compared to the same date in 2001, due to a greater
number of discontinued subscriptions because of the deteriorated domestic
economic situation.
As a result of the foregoing and the amortization of the lower value of
investments through Cordillera Comunicaciones from $1,003 million in the
quarter ($944 million in 2001), Cristalchile Comunicaciones recorded a net
loss of $2,391 million (loss of $2,417 in the first quarter of 2001).
4. CASH FLOW STATEMENT
-------------------
During the first quarter of 2002 a total net positive flow of Ch$6,624 million
was generated, which is explained by a positive flow generated by operating
activities of Ch$7,075 million, which was reduced by a negative financing flow
of Ch$1,907 million and a positive flow of investment activities of Ch$1,456
million.
The operating flow corresponds basically to the collection of sales and
financial interests that were reduced by payment to suppliers, interests and
income tax.
- ----------
1 Measured between 9:00 A.M. and 1:00 A.M. (in other words 16 hours a day)
from Monday to Sunday.
The financing flow can be explained mainly by payment of dividends for
Ch$1,880 million in January 2002.
The investment flow is mainly explained by the redemption of Term Deposits at
over 90 days and the expiry of future contracts. This flow was used in part in
the incorporation of fixed assets and in the investment of financial
instruments.
The foregoing results in an increase in the final balance of cash and cash
equivalent, which passed from Ch$18,440 million as of March 31, 2001 to
$25,139 million as of March 31, 2002.
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
----------------------------------------------
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$100 million, which was agreed
at a variable rate Libo plus 1.125 percentage points on average. On the other
hand, as of March 31, 2002 the Company had available funds of $38,100 million
invested at different terms in instruments like term deposits, bonds, fixed
rate and repurchase agreement mutual funds.
The company does 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.
The Company maintains liabilities in dollars of US$111.9 million, which
represent 24.2% of its assets, and include a long-term syndicated loan of
US$100 million. As of March 31 the Company has investments in dollars of
US$50.4 million in term deposits, bonds and fixed rate mutual funds. It also
has dollar purchase contracts of US$119.6 million, and a contract that
provides coverage for Euro/Dollar fluctuations for 3.5 million Euros, all of
which provides a reasonable coverage for exchange rate variations risk.
RELEVANT EVENTS
In a letter dated April 17, 2002, the SVS was notified that in the Meeting of
the Board of Directors held on April 16, 2002, it was agreed to start a bond
issue process to fully or partially substitute short and medium term
liabilities and finance future investments.
Non-secured sight bonds non-convertible into shares for an amount of UF
4,100,000 (four million one hundred UF) shall be issued. The bonds will be
placed in the capital market, under the terms and conditions, and timing to be
defined.
The Board of Directors authorized the Chairman, Vice-chairman, Mr. Jaime Claro
Valdes and the company's General Manger, so that acting jointly any two of
them, they may establish the terms, conditions and timing of the issue, and so
they may enter into contracts and carry out any acts necessary for the issue
and sale of the bonds.
Cristalerias de Chile S.A.
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, in the city of Santiago, Chile.
Cristalerias de Chile S.A.
By:/s/ Cirilo Elton Gonzalez
---------------------------
Chief Executive Officer
Dated: July 25, 2002