As at 31 March 2000, the Group has commitments with local banks relating to letters of guarantee issued by the banks in respect of custom duties, electricity use and other transactions in the ordinary course of business amounting to approximately Baht 4,531 million on a consolidated basis and Baht 4,456 million on a company basis. 17 Acquisition In February 1999 the Group acquired an additional 40% of share capital of Advanced Paging Co., Ltd. Consolidated 1999 Million Baht Purchase consideration 949 Fair value of net assets acquired (418) Positive goodwill 531 No fair value adjustments were made to the book value of net assets acquired. The Group's management is of the opinion that the book value approximated fair value at the date of acquisition. 17 Acquisition (continued) The book value of assets and liabilities acquired on the additional acquisition of Advanced Paging Co., Ltd. were as follows: Million Baht Cash on hand and at banks 43 Short-term investments 220 Trade accounts receivable, net 130 Amounts due from related companies 12 Inventories, net 43 Other current assets 54 Equipment, net 515 Other assets 360 Trade accounts payable (25) Amounts due to related companies (5) Deposits from customers (56) Accrued expenses (117) Other current liabilities (129) Fair value of net assets 1,045 Interest acquired 40% Fair value of net assets acquired 418 18 Related company transactions During the period, the Group has entered into a number of transactions with related companies. The terms of such transactions are negotiated on an arms length market value basis in the ordinary course of business and according to normal trade conditions. On 19 February 1999, Shin Corporations Public Co., Ltd. ceased to hold in excess of 50% of the share capital of the Company. Therefore, Shin Corporations Public Co., Ltd. ceased to be treated as the parent company in the first quarter ended 31 March 1999. Significant related company transactions are summarised as follows: a) Sales of goods and services For the three-month periods ended 31 March Consolidated Company 2000 1999 2000 1999 Million Baht Million Baht Million Baht Million Baht Service income Subsidiaries Advanced Wireless Marketing Co., Ltd. - - 3 3 Others - - - - - - 3 3 Related companies Singapore Telecom Mobile Pte Ltd. 40 - 40 - Others 2 2 1 2 42 2 41 2 Total service income 42 2 44 5 Sales of prepaid cards Subsidiary Advanced Wireless Marketing Co., Ltd. - - 82 - 18 Related company transactions (continued) b) Purchases of services For the three-month periods ended 31 March Consolidated Company 2000 1999 2000 1999 Million Baht Million Baht Million Baht Million Baht Rental and other service expenses Subsidiaries Advanced Wireless Marketing Co., Ltd. - - 8 25 Others - - 4 1 - - 12 26 Related companies Shin Satellite Public Co., Ltd. 22 48 22 48 Shin Corporations Public Co., Ltd. - 4 - 4 SC Asset Co., Ltd. 12 4 8 4 SC Office Park Co., Ltd. 8 2 6 2 Tele Info Media Co., Ltd. 8 3 8 3 Upcountry Land Co., Ltd. 23 21 23 21 OAI Leasing Co., Ltd. 9 7 8 7 OAI Asset Co., Ltd. 35 25 27 25 Others 15 27 10 8 132 141 112 122 Total rental and other service expenses 132 141 124 148 Advertising expenses Related companies SC Matchbox Co., Ltd. 118 62 13 - Others 4 - 1 - Total advertising expenses 122 62 14 - Consulting and management fees Related companies Shin Corporations Public Co., Ltd. 25 19 25 19 Shinawatra Information Technology Co., Ltd. - 2 - 2 Total consulting and management fees 25 21 25 21 18 Related company transactions (continued) For the three-month periods ended 31 March Consolidated Company 2000 1999 2000 1999 Million Baht Million Baht Million Baht Million Baht Interest expenses Subsidiaries - - 8 - Related companies Shin Corporations Public Co., Ltd. - 1 - 1 A major shareholder of related companies 11 38 11 38 11 39 11 39 Total interest expenses 11 39 19 39 c) Purchases of property, equipment and computer software For the three-month periods ended 31 March Consolidated Company 2000 1999 2000 1999 Million Baht Million Baht Million Baht Million Baht Related companies 1 2 1 1 d) Purchases of cost of mobile phone and pager service networks and Datanet tools and equipment under concession agreements For the three-month periods ended 31 March Consolidated Company 2000 1999 2000 1999 Million Baht Million Baht Million Baht Million Baht Related company Shinawatra Information Technology Co., Ltd. - 1 - 18 Related company transactions (continued) e) Outstanding balance arising from sales/purchases of goods/services and loans from related companies Consolidated Company 31 March 31 December 31 March 31 December 2000 1999 2000 1999 Million Baht Million Baht Million Baht Million Baht Trade accounts receivable Subsidiary Advanced Wireless Marketing Co., Ltd. - - 38 47 Related companies Singapore Telecom Mobile Pte Ltd. 29 37 29 37 Others 6 5 - - 35 42 29 37 Total trade accounts receivable 35 42 67 84 Amounts due from related companies Subsidiaries - - 2 2 Related companies 1 1 - - Total amounts due from related companies 1 1 2 2 Trade accounts payable Subsidiaries - - 2 2 Related companies Tele Info Media Co., Ltd. 3 4 2 4 Singapore Telecom Mobile Pte Ltd. 2 2 2 2 Shin Satellite Public Co., Ltd. 9 1 9 1 Others 3 6 1 1 17 13 14 8 Total trade accounts payable 17 13 16 10 18 Related company transactions (continued) e) Outstanding balance arising from sales/purchases of goods/services and loans from related companies (continued) Consolidated Company 31 March 31 December 31 March 31 December 2000 1999 2000 1999 Million Baht Million Baht Million Baht Million Baht Amounts due to and loans from related companies Amounts due to related companies Subsidiaries Advanced Paging Co., Ltd. - - 9 11 Others - - 5 9 - - 14 20 Related companies Singapore Telecom International Pte Ltd. 15 20 9 6 SC Matchbox Co., Ltd. 55 106 4 10 Shin Corporations Public Co., Ltd. 26 1 26 1 Others 33 8 20 7 129 135 59 24 Total amounts due to related companies 129 135 73 44 Loans from related companies Subsidiaries Advanced Paging Co., Ltd. - - - 250 Advanced Wireless Marketing Co., Ltd. - - - 400 Total loans from related companies - - - 650 Total amounts due to and loans from related companies 129 135 73 694 The loans from Advanced Paging Co., Ltd. and Advanced Wireless Marketing Co., Ltd. were provided interest rate at the short-term market rate quoted by the Banks that approved short-term credit line for the Company. The applied borrowing rate would be the rate that the Company would get if the Company borrowed from the commercial banks at that specific period. Consolidated Company 31 March 31 December 31 March 31 December 2000 1999 2000 1999 Million Baht Million Baht Million Baht Million Baht Deposits from customers, net Subsidiary Advanced Wireless Marketing Co., Ltd. - - 503 483 Related company Shin Corporations Public Co., Ltd. 100 105 100 105 Total deposits from customers, net 100 105 603 588 18 Related company transactions (continued) e) Outstanding balance arising from sales/purchases of goods/services and loans from related companies (continued) Consolidated Company 31 March 31 December 31 March 31 December 2000 1999 2000 1999 Million Baht Million Baht Million Baht Million Baht Long-term debentures A major shareholder of related companies 270 270 270 270 Directors of a related company and the Company 23 - 23 - Subsidiary Advanced Wireless Marketing Co., Ltd. - - 31 - Related company Shin Corporations Public Co., Ltd. 100 - 100 - Total long-term debentures 393 270 424 270 f) Financial support for construction of main route stations 31 March 31 December 31 March 31 December 2000 1999 2000 1999 Million Baht Million Baht Million Baht Million Baht Deferred charges, net Related company Upcountry Land Co., Ltd. 98 100 98 100 Contributions to construction of main Route stations For the three-month Periods ended 31 March Consolidated Company 2000 1999 2000 1999 Million Baht Million Baht Million Baht Million Baht Related company Upcountry Land Co., Ltd. - 2 - 2 Singapore Telecom International Pte Ltd. and Singapore Telecom Mobile Pte Ltd. are subsidiaries of Singapore Telecommunications Ltd., a shareholder holding in excess of 20% of the share capital of the Company. Shin Corporations Public Co., Ltd. ceased to be the parent of the Company, but continues to hold in excess of 20% of the share capital of the Company. Shin Satellite Public Co., Ltd., Tele Info Media Co., Ltd., SC Matchbox Co., Ltd. and Shinawatra Information Technology Co., Ltd. are subsidiaries of Shin Corporations Public Co., Ltd. Upcountry Land Co., Ltd., SC Asset Co., Ltd., OAI Leasing Co., Ltd. and OAI Asset Co., Ltd. are related through their principal shareholder being a major shareholder of Shin Corporations Public Co., Ltd.