Regular reviews are conducted on network carrying values in consideration of global developments in the wireless telecommunications industry. This basis of amortisation has been applied with effect from the commencement of use of the NMT analogue and GSM digital networks. The effects on the consolidated and company balance sheets as at 31 December 1999 and 1998 and consolidated and company statements of income for the years then ended are as follows: Consolidated Company 1999 1998 1999 1998 Restated Restated Million Baht Million Baht Million Baht Million Baht Balance sheets Decrease in net book value of mobile phone networks 5,792.45 4,035.40 5,792.45 4,035.40 Decrease in retained earnings brought forward at 1 January 4,035.40 2,519.90 4,035.40 2,519.90 Statements of income Increase in amortisation expense 1,757.05 1,515.50 1,757.05 1,515.50 Accounting for cost of Datanet tools and equipment under concession agreement and accounting for the change in status of investment in associate to be investment in subsidiary Datanet operating right, which is owned by Shinawatra Datacom Co., Ltd. ("the subsidiary") represents project tools and equipment acquired for the contract with TOT, dated 19 September 1989. Under the terms of the concession agreement the ownership of the system equipment, including tools, vests with TOT on completion of equipment installation. The subsidiary is entitled to operate the DATAKIT VIRTUAL CIRCUIT SWITCH system over the concession period. Previously the subsidiary amortised the cost of such tools and equipment over the remaining period of the concession agreement, commencing from the date of equipment installation, to September 2022. During the year, the subsidiary's management has reviewed its accounting for the cost of such system equipment and now amortises such cost over the period the underlying system equipment assets are expected to contribute revenue and cash to the business. The subsidiary's management considers that this presents more fairly the economic substance and benefits expected to flow from use of these assets under the terms of the concession agreement. Therefore, the cost of the system equipment, including tools, is amortised on a straight-line basis over a period of 10 years not exceeding the remaining period of concession agreement. This basis of amortisation has been applied with effect from the commencement of use of Datanet equipment. 3 Adjustments (continued) On 29 October 1999, the Company increased its interest in the subsidiary, which formerly was an associate, by 40.08% of the total share capital. As a result, the Company has 67.95% interest, causing a change in status to be a subsidiary. Therefore, the financial statements of the subsidiary are consolidated with the Company's from 29 October 1999 onward. The net effect resulting from the above changes on the consolidated and company balance sheets as at 31 December 1999 and 1998 and consolidated and company statements of income for the years then ended are as follows: Consolidated Company 1999 1998 1999 1998 Restated Restated Million Baht Million Baht Million Baht Million Baht Balance sheets Decrease in net book value of Datanet tools and equipment (70.95) (37.67) - - Decrease in investments in subsidiaries - - (11.50) (5.02) Decrease in minority interests (53.93) (32.15) - - Decrease in retained earnings as at 1 January (5.02) (1.26) (5.02) (1.26) Statements of income Increase in amortisation expense 33.28 30.64 - - Decrease in net income (11.50) (3.76) (11.50) (3.76) Decrease in net profit in subsidiaries to minority interests (21.78) (15.59) - - 4 Cash on hand and at banks Consolidated Company 1999 1998 1999 1998 Restated Restated Million Baht Million Baht Million Baht Million Baht Cash on hand 54.72 68.10 2.97 2.96 Deposits held at call with banks 826.26 2,031.12 522.88 1,687.96 Total cash on hand and at banks 880.98 2,099.22 525.85 1,690.92 The weighted average effective interest rates of deposits held at call with banks were between 2.57% and 2.66% (1998: 3.88% - 5.55%). The Group's fixed deposits amounting to Baht 41.33 million (1998: Baht 17.80 million) have been pledged with a bank in respect of bank guarantees. 5 Short-term investments Short-term investments represent fixed deposits with banks and other financial institutions and investments in bills of exchange with duration within 1 year. Consolidated Company 1999 1998 1999 1998 Restated Restated Million Baht Million Baht Million Baht Million Baht Fixed deposits with local and foreign banks 2,665.13 2,208.52 2,352.92 2,066.01 Fixed deposits with other finance companies - 280.00 - 100.00 Investments in bills of exchange 145.00 - - - Total short-term investments 2,810.13 2,488.52 2,352.92 2,166.01 6 Trade accounts receivable, net Consolidated Company 1999 1998 1999 1998 Restated Restated Million Baht Million Baht Million Baht Million Baht Trade accounts receivable: Third parties 4,085.82 3,401.78 3,578.49 3,059.43 Related companies 42.34 30.06 84.35 23.87 Total trade accounts receivable 4,128.16 3,431.84 3,662.84 3,083.30 Less: Allowance for doubtful accounts (279.81) (367.45) (232.70) (333.88) Total trade accounts receivable, net 3,848.35 3,064.39 3,430.14 2,749.42 Trade accounts receivable - related companies as at 31 December comprise: Consolidated Company 1999 1998 1999 1998 Restated Restated Million Baht Million Baht Million Baht Million Baht Parent company - 0.42 - - Subsidiaries - - 46.72 0.38 Other related companies 42.34 29.64 37.63 23.49 Total trade accounts receivable- related companies 42.34 30.06 84.35 23.87 6 Trade accounts receivable, net (continued) Certain debtors with settlement problems are included in the above trade accounts receivable. The Group has set up provisions to account for these debtors. The outstanding balances can be aged as follows: Consolidated Company 1999 1998 1999 1998 Restated Restated Million Baht Million Baht Million Baht Million Baht Overdue 3 - 6 months 239.42 303.69 218.42 275.16 Overdue 6 - 12 months 190.91 453.16 189.69 444.88 Over 12 months 36.31 34.96 24.51 31.88 466.64 791.81 432.62 751.92 Allowance for doubtful accounts (279.81) (367.45) (232.70) (333.88) The directors are of the opinion that allowance for doubtful debts overdue more than 3 months of the Group in conjunction with deposits received from these customers (presented in balance sheet as deposits from customers) and bank guarantees received from dealers are sufficient to cover the bad debt risk. 7 Amounts due from and loans to related companies, net Consolidated Company 1999 1998 1999 1998 Restated Restated Million Baht Million Baht Million Baht Million Baht Parent company - 5.69 - 5.69 Subsidiaries - - 1.98 208.15 Other related companies 0.92 12.33 0.48 0.81 Total amounts due from and loans to related companies 0.92 18.02 2.46 214.65 Less: Allowance for doubtful accounts (0.37) (0.37) (0.37) (0.37) Total amounts due from and loans to related companies, net 0.55 17.65 2.09 214.28 8 Inventories, net Consolidated Company 1999 1998 1999 1998 Restated Restated Million Baht Million Baht Million Baht Million Baht Finished goods 873.54 626.65 - - Supplies and spare parts 134.07 107.27 - - Total inventories 1,007.61 733.92 - - Less: Provisions for obsolete inventories and diminution in value of finished goods (68.14) (50.36) - - Total inventories, net 939.47 683.56 - - 9 Other current assets Consolidated Company 1999 1998 1999 1998 Restated Restated Million Baht Million Baht Million Baht Million Baht Other receivables 661.78 301.98 660.40 256.34 Prepaid expenses 173.23 135.96 168.90 125.82 Others 255.62 120.46 198.92 64.41 Total other current assets 1,090.63 558.40 1,028.22 446.57 10 Long-term investments, net Consolidated Company 1999 1998 1999 1998 Restated Restated Million Baht Million Baht Million Baht Million Baht Subsidiaries - - 3,825.62 1,607.45 Other company, net - - - - Total long-term investments, net - - 3,825.62 1,607.45 Investments in subsidiaries Company 1999 1998 Restated Million Baht Million Baht Opening balance Cost 1,501.13 849.62 Accumulated share of net profit/(loss) in subsidiaries 111.34 (21.80) Opening net book amount - as previously reported 1,612.47 827.82 Adjustment (Note 3) Change in amortisation period for cost of Datanet tools and equipment under concession agreement (5.02) (1.26) Opening net book amount - as restated 1,607.45 826.56 Share of net profit in subsidiaries 987.57 129.38 Acquisitions (Note 38) 1,230.60 651.51 Closing net book amount 3,825.62 1,607.45 10 Long-term investments, net (continued) Company - 31 December 1999 Accumulated share of profit/ (loss) in Country of Nature of Paid-up capital Investment Cost subsidiaries Equity Dividend Nature of business incorporation relationship (Million Baht) portion (%) (Million Baht) (Million Baht) (Million Baht) (Million Baht) Subsidiaries Advanced Paging Service provider of Thailand Shareholder 350.00 99.99 1,703.36 227.70 1,931.06 - Co., Ltd. digital paging system (formerly "Shinawatra network, trading of Paging Co., Ltd.") pagers and providing pagers for rent Advanced Wireless Importer and distributor Thailand Shareholder 240.00 99.99 600.00 885.37 1,485.37 - Marketing Co., Ltd. of cellular phones, (formerly "Shinawatra related accessories Wireless Marketing and cellular phone rental Co., Ltd.) service provider Shinawatra Datacom Service provider Thailand Shareholder 457.52 67.95 420.37 (18.66) 401.71 - Co., Ltd. of voice/data communications via telephone line Data Network Solution Service provider of Thailand Shareholder 1.00 49.00 8.00 (0.52) 7.48 - Co., Ltd. voice/data communications via telephone line 2,731.73 1,093.89 3,825.62 - 10 Long-term investments, net (continued) Company - 31 December 1998 (Restated) Accumulated share of profit/ (loss) in Country of Nature of Paid-up capital Investment Cost subsidiaries Equity Dividend Nature of business incorporation relationship (Million Baht) portion (%) (Million Baht) (Million Baht) (Million Baht) (Million Baht) Subsidiaries Advanced Paging Service provider of Thailand Shareholder 350.00 59.99 753.76 136.59 890.35 - Co., Ltd. digital paging system network, trading of pagers and providing pagers for rent Advanced Wireless Importer and distributor Thailand Shareholder 240.00 99.99 600.00 - 600.00 - Marketing Co., Ltd. of cellular phones, related accessories and cellular phone rental service provider Shinawatra Datacom Service provider Thailand Shareholder 457.52 27.87 147.37 (30.27) 117.10 - Co., Ltd. of voice/data communications via telephone line 1,501.13 106.32 1,607.45 - 10 Long-term investments, net (continued) Investment in other company Percentage of holding by the Group and the Company 1999 1998 Restated Nature of business Percent Percent Unlisted company Fonepoint (Thailand) Co., Ltd. Service provider of cellular phones 17.80 17.80 Consolidated Company 1999 1998 1999 1998 Restated Restated Million Baht Million Baht Million Baht Million Baht Other company: Unlisted company Investment, at cost 17.20 17.20 17.20 17.20 Less: Provision for change in fair value of investment (17.20) (17.20) (17.20) (17.20) Total investment in other company, net - - - - 11 Property and equipment, net Consolidated 1999 Million Baht Furniture, Leasehold fixtures Buildings and Leasehold building Tools and and office Land improvements rights improvements equipment equipment At 31 December 1998 Cost 10.97 52.34 42.72 112.51 2,040.62 682.04 Less: Accumulated depreciation - (11.98) (30.41) (42.15) (741.64) (363.48) Provision for obsolete fixed assets - - - - - - Net book amount 10.97 40.36 12.31 70.36 1,298.98 318.56 Year ended 31 December 1999 Opening net book amount 10.97 40.36 12.31 70.36 1,298.98 318.56 Acquisition of subsidiary (Note 38) - - - - - 5.56 Additions - 0.25 1.73 35.22 581.52 88.28 Transfers - (2.61) - - 2.61 - Disposals, net (2.52) (4.72) - (3.73) (5.98) (2.08) Depreciation charge - (3.06) (5.03) (16.75) (411.33) (125.12) Additional provision for obsolete fixed assets - (2.60) - - - (7.52) Closing net book amount 8.45 27.62 9.01 85.10 1,465.80 277.68 Consolidated 1999 Million Baht Pagers and Assets under Assets mobile constructi purchased Total phones for on and under finance property and rent Vehicles installation leases equipment At 31 December 1998 Cost 73.81 55.26 133.37 4.77 3,208.41 Less: Accumulated depreciation (39.09) (21.57) - (2.15) (1,252.47) Provision for obsolete fixed assets (1.80) - - - (1.80) Net book amount 32.92 33.69 133.37 2.62 1,954.14 Year ended 31 December 1999 Opening net book amount 32.92 33.69 133.37 2.62 1,954.14 Acquisition of subsidiary (Note 38) - - - - 5.56 Additions 29.87 21.54 83.55 - 841.96 Transfers - - (187.05) - (187.05) Disposals, net (1.84) (8.96) - (0.29) (30.12) Depreciation charge (27.23) (9.83) - (0.88) (599.23) Additional provision for obsolete fixed assets (0.33) - - - (10.45) (more)