NOTE 14 - LONG-TERM LIABILITIES Long-term liabilities at June 30, comprise: Million Baht Consolidated Company's Separate Balance Sheets Balance Sheets 1998 1997 1998 1997 Loans from foreign banks 553.66 335.92 553.66 335.92 Syndicated loans from foreign banks 8,560.53 1,963.84 7,453.20 1,292.00 Loans from foreign finance companies 2,140.60 996.79 2,140.60 996.79 Loans from foreign company 35.77 69.99 35.77 69.99 Liabilities under financial leases 3.25 3.89 3.25 3.89 11,293.81 3,370.43 10,186.48 2,698.59 Less Excess of the current value of purchased currency under forward contracts, for future repayments of above loans, over the value under contracted exchange rates 1,567.49 24.47 1,123.16 15.63 9,726.32 3,345.96 9,063.32 2,682.96 Less Current portion of long-term liabilities 3,136.61 704.68 2,473.61 704.68 Long-term Liabilities - net 6,589.71 2,641.28 6,589.71 1,978.28 Outstanding long-term loans in foreign currencies at the end of each period are translated into Baht at the exchange rate ruling on that date and are shown net of the excess of the current value of purchased foreign currency under forward contracts, in relation to future repayments of above loans, over the value under contracted exchange rates. Loans From Foreign Banks Loans from foreign banks as at June 30, 1998 and 1997 represent loans in US dollars obtained by Advanced Info Service Public Company Limited (" the Company ") 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 June 30, 1998 and 1997, outstanding loan balances under the aforesaid two loan agreements amounted to approximately Baht 553.66 million and Baht 335.92 million, respectively. Syndicated Loans From Foreign Banks Syndicated loans from foreign banks as at June 30, 1997 represent loans in US dollars under two loan agreements. Loan under the first agreement represents loan obtained by Shinawatra Paging Company Limited (" the subsidiary ") 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. 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. Syndicated loans from foreign banks as at June 30, 1998 represent loans in US dollars under four loan agreements. Loan under the first agreement represents loan obtained by the subsidiary from the same lenders and under the same first loan agreement as at June 30, 1997. Loan under the second agreement obtained by the Company from the same lenders and under the same second loan agreement as at June 30, 1997. Loans under the third and fourth agreement have been 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 rates 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 each of the said agreements. As at June 30, 1998 and 1997, outstanding loan balances under syndicated loan agreements in the consolidated balance sheets amounted to approximately Baht 8,560.53 million and Baht 1,963.84 million, respectively. As at June 30, 1998 and 1997, outstanding loan balances under the syndicated loan agreements in the Company's separate balance sheets amounted to approximately Baht 7,453.20 million and Baht 1,292.00 million, respectively. Loans From Foreign Finance Companies Loans from a foreign finance company as at June 30, 1997 represent loans in US dollars obtained by the Company from a finance company under five loan agreements. Loans under the first and second agreement are repayable in fifteen equal semi-annual installments commencing March 15, 1993 and June 23, 1993, respectively. Interest under the said two loan agreements are payable semi-annually at the rates ranging from 6.78% - 7.40% per annum. Loan under the third agreement is repayable in four equal semi-annual installments commencing January 15, 1997. Interest rate and interest payments are at the 6 month LIBOR plus the rate as prescribed in the said agreement. Loan under the fourth agreement is repayable in ten equal semi-annual installments commencing July 15, 1996. Interest under the said loan agreement is payable semi-annually at the rate of 6.88% per annum. Loan under the fifth agreement is repayable in nine equal semi-annual installments commencing January 15, 1997. Interest under the said loan agreement is payable semi-annually at the rate of 6.32% per annum. Loans from foreign finance companies as at June 30, 1998 represent loans obtained by the Company from three finance companies under eight loan agreements. Loans under first five loan agreements obtained from the first finance company represent the same loans under the same five loan agreements as at June 30, 1997. Loan under the sixth agreement represents additional loan in US dollars obtained from the first finance company and is repayable in six equal semi-annual installments commencing September 15, 1999, while interest rate and interest payments under the said loan agreement are at the 6 month LIBOR plus the rate as prescribed in the said agreement. Loan under the seventh agreement represents loan in US dollars obtained from the second finance company and is repayable in six equal semi-annual installments commencing March 15, 2000. Interest rate and interest payments are at the 6 month LIBOR. Loan under the eighth agreement represents loan in US dollars equivalent Deutschmark obtained from the third finance company and is repayable in ten equal semi-annual installments commencing March 31, 2000. Interest rate and interest payments are at the 6 month LIBOR plus the rate as prescribed in the said agreement. As at June 30, 1998 and 1997, outstanding loan balances obtained from three finance companies under eight loan agreements amounted to approximately Baht 2,140.60 million and Baht 996.79 million, respectively. Loans From Foreign Company Loans from a foreign company as at June 30, 1997 represent loans in US dollars obtained by the Company from a company under three loan agreements. Loans under the first and second agreement are repayable in ten equal semi-annual installments commencing June 30, 1993 and January 31, 1994, respectively. Interest under the said two loan agreements are payable semi-annually at the rates ranging from 5.875% - 5.97% per annum. Repayment of the first agreement was fully made by the Company in the fourth quarter of 1997. Loan under the third agreement is repayable in ten equal semi-annual installments commencing April 29, 1994, while interest rate and interest payments under the said loan are at the 6 month LIBOR plus the rate as prescribed in the said agreement. Loans obtained by the Company from a foreign company as at June 30, 1998 represent loans under two loan agreements from the same lender and under the same second and third agreement as at June 30, 1997. As at June 30 1998 and 1997, outstanding balances under the aforesaid three loan agreements amounted to approximately Baht 35.77 million and Baht 69.99 million, respectively. According to the aforesaid loan agreements made with financial institutions and foreign companies, there are certain terms and conditions for the Company and its subsidiary to comply. At June 30, 1998, Advanced Info Service Public Company Limited has outstanding loan balances obtained from a foreign financial institution under two agreements amounting to US$ 14.55 million and their repayments are scheduled within January 2001. Debt/Equity Ratio and Current Ratio requirements formerly stipulated under the first loan agreement were 1.75:1 and 0.75:1, respectively, while Debt/Equity Ratio requirement formerly stipulated under the second loan agreement was 1.75:1. On June 22, 1998, the aforesaid foreign financial institution and the Company mutually agreed to change the Debt/Equity Ratio prescribed in both aforesaid loan agreements from 1.75:1 to 2:1 while there was no change to the Current Ratio requirement as stipulated in the first loan agreement. At June 30, 1998, the Current Ratio was still lower than the point stipulated in the first loan agreement, caused by the large unrealized exchange loss which derived from the change in exchange rate system in July 1997. The Company's management has been re-negotiating with the aforesaid financial institution to make allowances for the Company relating to conditions prescribed in the aforesaid loan agreements. Liabilities Under Financial Leases The Company has entered into six financial lease agreements with a related company to obtain vehicles for its business operations. The financial leases are irrevocable and payable monthly in 60 installments with interest at the rates ranging from 19.81 - 23.648% per annum. The said lease agreements stipulate that the Company has the right to buy those vehicles, after fully paid up those leases, at the price of 10% of the vehicles' costs or of the prices purchased by the lessor from car agency. At June 30, 1998, the Company was committed to future payments under financial leases shown in present value, using the discount rates ranging from 19.81 - 23.648% per annum, as follows: Date Amount (Baht) June 30, 1999 788,153.90 June 30, 2000 973,817.89 June 30, 2001 1,123,577.33 December 31, 2001 366,712.41 Total 3,252,261.53 Payment commitments as of June 30, 1999 are included in current portion of long-term liabilities as shown in the schedule of long-term liabilities. NOTE 15 - OTHER INCOME Other income for the three-month periods ended June 30, comprise: Million Baht Consolidated Company's Separate Statements of Income Statements of Income 1998 1997 1998 1997 Interest income 100.32 54.27 73.49 38.54 Others 25.35 2.27 23.98 0.12 Total 125.67 56.54 97.47 38.66 Other income for the six-month periods ended June 30, comprise: Million Baht Consolidated Company's Separate Statements of Income Statements of Income 1998 1997 1998 1997 Interest income 243.83 112.29 199.03 79.75 Others 53.10 6.54 50.73 3.03 Total 296.93 118.83 249.76 82.78 NOTE 16 - DIRECTORS' REMUNERATION Directors' remuneration represents meeting fees and gratuities as approved by the shareholders of the Company and its subsidiary in their Annual General Meetings. NOTE 17 - OTHER EXPENSES Other expenses for the three-month periods ended June 30, comprise: Million Baht Consolidated Company's Separate Statements of Income Statements of Income 1998 1997 1998 1997 Amortization of goodwill 9.15 9.15 - - Losses from written off assets 10.84 - - - Others - 4.80 - 1.50 Total 19.99 13.95 - 1.50 Other expenses for the six-month periods ended June 30, comprise: Million Baht Consolidated Company's Separate Statements of Income Statements of Income 1998 1997 1998 1997 Amortization of goodwill 18.30 18.30 - - Losses from written off assets 10.84 5.09 - 5.09 Others 1.96 4.80 1.96 1.50 Total 31.10 28.19 1.96 6.59 (More)