NOTE 7 - ACCOUNTS AND NOTES RECEIVABLE Accounts and notes receivable at December 31 were shown net of allowance for doubtful accounts as follows: Million Baht Consolidated Company's Separate Balance Sheets Balance Sheets 1997 1996 1997 1996 Accounts and notes receivable 3,401.58 2,475.21 3,187.79 2,233.81 Accounts and notes receivable from related parties (Note 3) 7.85 1.33 0.65 1.09 3,409.43 2,476.54 3,188.44 2,234.90 Less Allowance for doubtful accounts 257.18 277.21 177.30 200.60 Accounts and Notes Receivable - net 3,152.25 2,199.33 3,011.14 2,034.30 NOTE 8 - INVENTORIES Inventories at December 31, comprise: Million Baht Consolidated Company's Separate Balance Sheets Balance Sheets 1997 1996 1997 1996 Finished goods 63.47 - - - Spare part for repair 28.33 - - - 91.80 - - - Less Allowance for obsolescence 25.80 - - - Inventories - net 66.00 - - - NOTE 9 - OTHER CURRENT ASSETS Other current assets at December 31, comprise: Million Baht Consolidated Company's Separate Balance Sheets Balance Sheets 1997 1996 1997 1996 Other receivables 309.01 203.15 307.76 198.26 Prepaid expenses 146.71 108.12 136.28 100.24 Refundable value added tax 404.35 102.22 403.19 49.85 Interest receivables 18.81 11.35 14.72 5.23 Others 28.39 39.14 25.17 40.84 Total 907.27 463.98 887.12 394.42 Other receivables mainly comprise service cost to be reimbursed by International network operators and value added tax to be claimed from the Telephone Organization of Thailand. NOTE 10 - ASSETS PLEDGED AS COLLATERAL As at December 31, 1996 Time deposits with banks, of the Company and its subsidiary, amounting to approximately Baht 7.50 million and 10.71 million were pledged as collateral for credits obtained from financial institutions. NOTE 11 - INVESTMENTS Investments at December 31, 1997 comprise investments in share capital of the following companies Values (Million Baht) % Paid-up Cost Equity Recorded Dividend Holding Capital Method Method Values Income Related Parties Subsidiary company Shinawatra Paging Company Limited 59.99 350.00 753.76 763.42 763.42 105.00 Other related company Shinawatra Datacom Company Limited 18.00 695.30 62.37 - 62.37 - Total Related Parties 825.79 Others Fonepoint (Thailand) Company Limited 17.80 15.00 - - - - Investments at December 31, 1996 comprise investments in share capital of the following companies: Values (Million Baht) % Paid-up Cost Equity Recorded Dividend Holding Capital Method Method Values Income Related Parties Subsidiary company Shinawatra Paging Company Limited 59.99 350.00 753.76 780.59 780.59 - Other related company Shinawatra Datacom Company Limited 18.00 695.30 63.86 - 63.86 - Total Related Parties 844.45 Others Fonepoint (Thailand) Company Limited 17.80 15.00 - - - - Shinawatra Paging Company Limited is principally engaged in the operations of a DIGITAL DISPLAY PAGING SYSTEM network, pagers rental and the trading of pagers. Shinawatra Datacom Company Limited is principally engaged in the operations of simultaneous voice and data transfer system known as DataNet, certain directors of Shinawatra Datacom Company Limited are having their directorship in Advanced Info Service Public Company Limited. The above investments in an other related company and an other company as at December 31, 1997 and 1996 are shown net of adjustments relating to the decline in values of investments amounting to approximately Baht 50.70 million and Baht 49.20 million, respectively. The Company does not have significant influence in the management of those companies. NOTE 12 - PROPERTY AND EQUIPMENT Property and equipment at December 31 comprise: Million Baht Consolidated Company's Separate Estimated Useful Balance Sheets Balance Sheets Lives (Years) 1997 1996 1997 1996 Land 10.97 5.92 2.52 2.52 Buildings and improvements 5-20 62.85 32.73 24.10 7.57 Leasehold buildings improvements 5-15 101.97 81.88 61.10 40.41 Furniture, fixtures and office equipment 1-10 2,022.84 923.50 1,759.80 743.28 Vehicles 5 33.15 29.20 28.39 23.47 Vehicles under financial leases 5 4.77 3.43 4.77 3.43 Assets under construction and installation 84.36 11.69 84.36 11.69 Prepayments on purchases of assets - 2.76 - - 2,320.91 1,091.11 1,965.04 832.37 Less Accumulated depreciation and amortization 683.79 425.56 487.57 263.96 1,637.12 665.55 1,477.47 568.41 Less Allowance for obsolete equipment 7.19 - - - Property and Equipment - net 1,629.93 665.55 1,477.47 568.41 As at December 31, 1997, land purchased by the Company's subsidiary from Pager Sales Company Limited, at the value of approximately Baht 5.05 million, was in the process of transferring the ownership to the subsidiary. NOTE 13 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses at December 31, comprise: Million Baht Consolidated Company's Separate Balance Sheets Balance Sheets 1997 1996 1997 1996 Other suppliers 7,379.63 4,470.98 7,247.25 4,301.81 Related parties (Note 3) 297.83 319.83 291.06 306.87 7,677.46 4,790.81 7,538.31 4,608.68 Less Excess of the current value of purchased foreign currency, in relation to the above payable, over the value under contracted forward exchange rate 3.30 - 3.32 - Accounts payable and accrued expenses- net 7,674.16 4,790.81 7,534.99 4,608.68 NOTE 14 - UNUTILIZED SHORT-TERM AND LONG-TERM LOAN FACILITIES Unutilized short-term and long-term loan facilities of the Company and its subsidiary as at December 31, 1997 are classified by type of currencies and shown as follows: Amounts Million Baht Million US$ Short-term Long-term Short-term Long-term Advanced Info Service Public Company Limited - - 13.00 89.21 Advanced Info Service Public Company Limited and subsidiary 320.00 - 18.00 89.21 Terms and conditions of unutilized long-term facilities are similar to those long-term loans described in Note 16, while terms and conditions of unutilized short-term loans facilities are not currently specified and subject to mutual agreement between the Company and its subsidiary and lenders in due course. NOTE 15 - OTHER CURRENT LIABILITIES Other current liabilities at December 31, comprise: Million Baht Consolidated Company's Separate Balance Sheets Balance Sheets 1997 1996 1997 1996 Income tax payable 360.80 817.31 297.76 775.85 Other payables 122.36 50.53 118.73 42.85 Equipment payables 68.59 22.65 67.15 21.35 Value added tax and withholding income tax payables 13.13 13.61 10.90 9.04 Others 35.11 17.27 22.44 10.93 Total 599.99 921.37 516.98 860.02 Other payables mainly comprise service costs to be charged from International network operators. NOTE 16 - LONG-TERM LIABILITIES Long-term liabilities at December 31, comprise: Million Baht Consolidated Company's Separate Balance Sheets Balance Sheets 1997 1996 1997 1996 Loans from foreign banks 618.23 333.58 618.23 333.58 Syndicated loans from foreign banks 8,417.41 667.16 7,180.96 - Loans from foreign finance companies 1,868.25 1,189.51 1,868.25 1,189.51 Loans from foreign company 79.88 108.89 79.88 108.89 Liabilities under financial leases 3.59 2.95 3.59 2.95 10,987.36 2,302.09 9,750.91 1,634.93 Less Excess of the current value of purchased foreign currency, in relation to the above loans, over the value under contracted forward exchange rate 2,377.07 21.74 1,803.62 14.46 8,610.29 2,280.35 7,947.29 1,620.47 Less Current portion of long-term liabilities 2,025.94 462.07 1,362.94 462.07 Long-term Liabilities - net 6,584.35 1,818.28 6,584.35 1,158.40 Outstanding long-term loans in foreign currencies at the end of each year are translated into baht at the exchange rates ruling on that date and are shown net of excess of the current value of purchased foreign currency over the value under contracted forward exchange rate Loans From Foreign Banks Loans from foreign banks as at December 31, 1997 and 1996 comprise loans obtained from two banks under two loan agreements. Both loans are repayable in lump sum on December 26, 1999. Interest rates and interest payments are to be mutually agreed with the lenders at the 1 month LIBOR or 3 month LIBOR or 6 month LIBOR plus the rates as prescribed in each of the said agreements. As at December 31, 1997 and 1996, outstanding loan balances under the aforesaid two loan agreements amount to approximately Baht 618.23 million and Baht 333.58 million, respectively. Syndicated Loans From Foreign Banks Syndicated loans from foreign banks as at December 31, 1996 comprise loans under an agreement obtained by a subsidiary company from eight banks and are repayable in a lump sum on September 5, 1998, while interest rate and interest payments under the said loan agreement are to be mutually agreed with the lenders at the 1 month SIBOR or 3 month SIBOR or 6 month SIBOR plus the rate as prescribed in the said agreement. Syndicated loans from foreign banks as at December 31, 1997 comprise loans under four loan agreements. Loan under the first agreement obtained by a subsidiary company from the same lenders and under the same loan agreement as at December 31, 1996. Loan under the second agreement obtained by the Company from fourteen banks and are repayable in five equal semi-annual installments commencing April 9, 1998, while interest rate and interest payments under the said loan agreement are to be mutually agreed with the lenders at the 1 month LIBOR or 3 month LIBOR or 6 month LIBOR plus the rate as prescribed in the said agreement. Loans under the third agreement and fourth agreement are obtained by the Company from twelve banks and three banks, respectively. Both loan agreements are repayable in four equal semi-annual installments commencing March 30, 1999 and April 2, 1999, respectively. Interest rate and interest payments under both loan agreements are to be mutually agreed with the lenders at the 3 month LIBOR or 6 month LIBOR plus the rate as prescribed in the said agreement. As at December 31, 1997 and 1996 outstanding balances under the said four syndicated loan agreements in the consolidated balance sheets amounted to approximately Baht 8,417.41 million and Baht 667.16 million, respectively. As at December 31, 1997 outstanding balances under the said three syndicated loan agreements in the Company's separate balance sheets amounted to approximately Baht 7,180.96 million. (More)