NOTE 7 - ACCOUNTS AND NOTES RECEIVABLE Accounts and notes receivable at September 30, were shown net of allowance for doubtful accounts as follows: Million Baht Consolidated Company's Separate Balance Sheets Balance Sheets 1998 1997 1998 1997 Related parties (Note 3) 1.98 1.26 0.76 0.52 Other customers 3,370.70 3,240.34 3,190.85 2,938.61 3,372.68 3,241.60 3,191.61 2,939.13 Less Allowance for doubtful accounts 487.32 427.53 406.50 310.30 Accounts and Notes Receivable - net 2,885.36 2,814.07 2,785.11 2,628.83 Trade notes receivable at September 30, 1998 and 1997 do not exceed 20% of total accounts and notes receivable as shown above. Accounts and notes receivable at September 30, 1998, of which are overdue more than 3 months, are summarized as follows: Million Baht Consolidated Company's Separate Financial Statements Financial Statements Balances overdue more than 3 months but not exceed 6 months 423.39 395.41 Balances overdue more than 6 months but not exceed 12 months 613.55 608.60 Balances overdue more than 12 months 25.68 5.68 Total 1,062.62 1,009.69 Allowance for doubtful accounts for the above overdue balances 487.32 406.50 Allowance for doubtful accounts for those accounts and notes receivable at September 30, 1998 which are overdue more than 3 months were considered in conjunction with deposits received from relevant customers. NOTE 8 - OTHER CURRENT ASSETS Other current assets at September 30, comprise: Million Baht Consolidated Company's Separate Balance Sheets Balance Sheets 1998 1997 1998 1997 Other receivables 652.28 273.72 646.70 269.08 Prepaid expenses 185.53 151.52 181.49 142.82 Refundable value added tax - 18.36 - 13.03 Accrued interest income 35.41 27.77 34.69 26.67 Others 46.34 45.72 44.27 38.94 Total 919.56 517.09 907.15 490.54 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 9 - INVESTMENTS Investments at September 30, 1998 comprise investments in share capital of the following companies Values (Million Baht) % Paid-up Cost Equity Recorded Dividend Holding Capital Method Method Values Income In the Company's separate financial statements Related Parties Subsidiary company Shinawatra Paging Company Limited 59.99 350.00 753.76 856.37 856.37 - Values (Million Baht) % Paid-up Cost Equity Recorded Dividend Holding Capital Method Method Values Income Other related company Shinawatra Datacom Company Limited 13.77 457.52 62.37 - 62.37 - 918.74 Other Company Fonepoint (Thailand) Company Limited 17.80 15.00 - - - - In the consolidated financial statements Related Parties Other related company Shinawatra Datacom Company Limited 13.77 457.52 62.37 - 62.37 - Other Company Fonepoint (Thailand) Company Limited 17.80 15.00 - - - - Investments at September 30, 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 In the Company's separate financial statements Related Parties Subsidiary company Shinawatra Paging Company Limited 59.99 350.00 753.76 725.39 725.39 105.00 Other related company Shinawatra Datacom Company Limited 18.00 695.30 62.37 - 62.37 - 787.76 Values (Million Baht) % Paid-up Cost Equity Recorded Dividend Holding Capital Method Method Values Income Other Company Fonepoint (Thailand) Company Limited 17.80 15.00 - - - - In the consolidated financial statements Related Parties Other related company Shinawatra Datacom Company Limited 18.00 695.30 62.37 - 62.37 - Other Company 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 September 30, 1998 and 1997, which do not represent marketable securities, are shown net of adjustments relating to the decline in values of investments, determined from their financial status, are equally recorded at Baht 50.70 million. The Company and its subsidiary do not have significant influence in the management of those companies. NOTE 10 - PROPERTY AND EQUIPMENT As at September 30, 1998, 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 11 - UNUTILIZED LOAN FACILITIES Unutilized loan facilities of the Company and its subsidiary as at September 30, 1998 are classified by type of currencies as follows: Million Consolidated Company's Separate Financial Statements Financial Statements Short-term Baht 1,008.12 788.12 US dollar 11.92 11.92 Long-term US dollar 42.65 42.65 Deutschmark 86.24 86.24 Terms and conditions of unutilized long-term facilities are similar to those long-term loans described in Note 14, 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 if required. NOTE 12 - ACCOUNTS AND NOTES PAYABLE AND ACCRUED EXPENSES Accounts and notes payable and accrued expenses at September 30, comprise: Million Baht Consolidated Company's Separate Balance Sheets Balance Sheets 1998 1997 1998 1997 Related parties (Note 3) 153.13 411.72 139.06 406.40 Notes payable to other supplier 1,308.33 - 1,308.33 - Balances with other suppliers and accrued expenses 8,439.18 6,392.22 8,305.99 6,225.85 9,900.64 6,803.94 9,753.38 6,632.25 Million Baht Consolidated Company's Separate Balance Sheets Balance Sheets 1998 1997 1998 1997 Add Excess of the value of purchased currency under contracted exchange rates, for future payments of above liabilities, over the current value of purchased currency under forward contracts 66.79 - 66.79 - Accounts and notes payable and accrued expenses - net 9,967.43 6,803.94 9,820.17 6,632.25 NOTE 13 - OTHER CURRENT LIABILITIES Other current liabilities at September 30, comprise: Million Baht Consolidated Company's Separate Balance Sheets Balance Sheets 1998 1997 1998 1997 Income tax payable 1,243.66 242.39 1,132.27 222.94 Other payables 138.61 87.11 135.34 87.11 Equipment payables 16.13 35.78 15.78 35.49 Value added tax payable 61.35 - 57.58 - Withholding income tax payable 33.79 35.10 28.97 30.21 Others 25.61 38.05 12.14 18.39 Total 1,519.15 438.43 1,382.08 394.14 Other payables mainly comprise service costs to be charged by The Communications Authority of Thailand. NOTE 14 - LONG-TERM LIABILITIES Long-term liabilities at September 30, comprise: Million Baht Consolidated Company's Separate Balance Sheets Balance Sheets 1998 1997 1998 1997 Loans from foreign banks 513.16 476.02 513.16 476.02 Syndicated loans from foreign banks 6,907.90 3,551.85 6,907.90 2,599.81 Loans from foreign finance companies 2,013.78 1,131.27 2,013.78 1,131.27 Loans from foreign company 12.32 79.87 12.32 79.87 Liabilities under financial leases 3.07 3.74 3.07 3.74 9,450.23 5,242.75 9,450.23 4,290.71 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 744.31 1,190.09 744.31 901.05 8,705.92 4,052.66 8,705.92 3,389.66 Less Current portion of long-term liabilities 3,264.35 1,539.18 3,264.35 876.18 Long-term Liabilities - net 5,441.57 2,513.48 5,441.57 2,513.48 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 September 30, 1998 and 1997 represent loans in US dollars obtained by the Company from two foreign 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 September 30, 1998 and 1997, outstanding loan balances under the aforesaid two loan agreements amounted to approximately Baht 513.16 million and Baht 476.02 million, respectively. Syndicated Loans From Foreign Banks Syndicated loans from foreign banks as at September 30, 1997 represent loans in US dollars under three loan agreements. Loan under the first agreement represents loan obtained by 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. Repayment of the first agreement was fully made by the subsidiary in the third quarter of 1998. 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. Loan under the third agreement obtained by the Company from twelve banks and are repayable in four equal semi-annual installments commencing March 30, 1999, while interest rate and interest payments under the said loan agreement 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. Syndicated loans from foreign banks as at September 30, 1998 represent loans in US dollars under three loan agreements. Loans under the first and second agreement obtained by the Company from the same lenders and under the same second and third loan agreement as at September 30, 1997. Loan under the third agreement obtained by the Company from three banks and are repayable in four equal semi-annual installments commencing April 2, 1999, while interest rate and interest payments under the said loan agreement 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 September, 1998 and 1997, outstanding loan balances under syndicated loan agreements in the consolidated balance sheets amounted to approximately Baht 6,907.90 million and Baht 3,551.85 million, respectively. As at September 30, 1998 and 1997, outstanding loan balances under the syndicated loan agreements in the Company's separate balance sheets amounted to approximately Baht 6,907.90 million and Baht 2,599.81 million, respectively. Loans From Foreign Finance Companies Loans from a foreign finance company as at September 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 September 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 September 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 September 30, 1998 and 1997, outstanding loan balances obtained from three finance companies under eight loan agreements amounted to approximately Baht 2,013.78 million and Baht 1,131.27 million, respectively. Loans From Foreign Company Loans from a foreign company as at September 30, 1997 represent loans in US dollars obtained by the Company from a foreign 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. Loan obtained by the Company from a foreign company as at September 30, 1998 represents loan under a loan agreement from the same lender and under the same third agreement as at September 30, 1997. As at September 30, 1998 and 1997, outstanding balances under the aforesaid loan agreements amounted to approximately Baht 12.32 million and Baht 79.87 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 September 30, 1998, the Company has outstanding loan balances obtained from a foreign financial institution under an agreement in the amount of US$ 7.68 million and its repayment is scheduled within January 2001. Debt/Equity Ratio and Current Ratio requirements formerly stipulated under the said loan agreement were 1.75:1 and 0.75: 1, respectively. On June 22, 1998, the aforesaid foreign financial institution and the Company mutually agreed to change the Debt/Equity Ratio prescribed in the said loan agreement from 1.75:1 to 2:1 while there was no change to the Current Ratio requirement as stipulated in the said loan agreement. At September 30, 1998, the Current Ratio was still lower than the level stipulated in the said loan agreement, caused by the large unrealized exchange loss which derived from the effect of change in exchange rate system in July 1997. As of September 30, 1998, the aforesaid foreign financial institution and the Company had mutually agreed to cancel the Current Ratio requirement as stipulated in the said loan agreement, pending the agreement to be signed by both parties. 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 September 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) September 30, 1999 830,952.73 September 30, 2000 1,026,748.81 September 30, 2001 1,063,140.32 December 31, 2001 149,712.69 Total 3,070,554.55 Payment commitments as of September 30, 1999 are included in current portion of long-term liabilities as shown in the schedule of long-term liabilities. (More)