In December 1998, the Company acquired additional investment in common share capital of Shinawatra Datacom Company Limited (6,449,176 shares at the value of Baht 51,508,548), and the Company's shareholding in Shinawatra Datacom Company Limited therefore increased from 13.77% to 27.86%. Accordingly, the Company is required to record such investment by using the equity method of accounting for the three-month period ended March 31, 1999 and the financial statements for the three-month ended March 31, 1998 have to be adjusted retroactively from the cost method to the equity method. As a result, investments in associated company and the Company's shareholders' equity as at March 31, 1999 and 1998, the results of the Company's operations, and basic earnings per share for the three-month period ended March 31, 1999 and 1998 are effected as follows: - Investments in associated company and the Company's shareholders' equity as at March 31, 1999, was increased by approximately Baht 8.29 million and net income for the three-month period ended March 31, 1999, was increased by approximately Baht 3.59 million, while basic earnings per share for the three-month period ended March 31, 1999 was increased by approximately Baht 0.01. - Investments in associated company and the Company's shareholders' equity as at March 31, 1998, was equally increased by approximately Baht 3.54 million. Net income for the three- month period ended March 31, 1998 was increased by approximately Baht 1.50 million, while basic earnings per share for the three-month period ended March 31, 1998 was increased by approximately Baht 0.01. Investment in the aforesaid associated company as at March 31, 1999, at the book value of approximately Baht 125.70 million, which is equivalent to 0.28% of the total consolidated assets and 0.29% of the Company's total assets at March 31, 1999, was recorded by using the equity method of accounting based on the related financial information of the financial statements for the three-month period ended March 31, 1999 prepared by the management of the said company and had not been audited or reviewed by the auditors. The related unaudited or unreviewed net result of investment in the said associated company for the three-month period ended March 31, 1999 was approximately Baht 3.59 million. Investment in an other company, Fonepoint (Thailand) Company Limited, as at March 31, 1999 and 1998, which do not represent marketable securities, are shown net of adjustment relating to the decline in value of investment, determined from its financial status in the amount of approximately Baht 17.20 million. The Company and its subsidiaries do not have significant influence in the management of this company. NOTE 11 - PROPERTY AND EQUIPMENT As at March 31, 1999, 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 12 - LOANS FROM BANKS Loans from banks as at March 31, comprise: Million Baht Consolidated Company's Separate Balance Sheets Balance Sheets 1999 1998 1999 1998 Short term loan from bank 188.96 - 188.96 - Liabilities under trust receipts 76.24 - - - 265.20 - 188.96 - 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 2.36 - 2.16 - Total 262.84 - 186.80 - NOTE 13 - ACCOUNTS AND NOTES PAYABLE AND ACCRUED EXPENSES Accounts and notes payable and accrued expenses at March 31, comprise: Million Baht Consolidated Company's Separate Balance Sheets Balance Sheets 1999 1998 1999 1998 Related parties (Note 3) 133.16 232.28 120.87 231.04 Notes payable to other supplier 750.47 - 750.47 - Balances with other suppliers and accrued expenses 7,736.55 8,076.13 6,736.38 7,959.11 8,620.18 8,308.41 7,607.72 8,190.15 Add (Less) Value of purchased currency under contracted exchange rates, for future payments of above liabilities, over (under) the current value of purchased currency under forward contracts (10.18) 36.13 (10.28) 36.13 Total 8,610.00 8,344.54 7,597.44 8,226.28 NOTE 14 - UNUTILIZED LOAN FACILITIES Unutilized loan facilities of the Company and its subsidiaries as at March 31, 1999 are classified by type of currencies as follows: Million Consolidated Company's Separate Financial Statements Financial Statements Short-term Baht 300.00 - US dollar 40.16 40.16 Long-term US dollar 41.50 41.50 Deutschmark 68.60 68.60 Terms and conditions of unutilized long-term facilities are similar to those long-term loans described in Note 18, while terms and conditions of unutilized short-term loans facilities are not currently specified and subject to mutual agreement between the Company, its subsidiaries and lenders if required. NOTE 15 - SHORT-TERM BONDS ISSUED BY ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED Short-term bonds at March 31, 1999 represent unsecured bonds totaling 2,000,000 units, Baht 1,000 per unit. The said short-term bonds are repayable on October 11, 1999 with the fixed interest rate at 12% per annum. The Company has entered into an agreement with Bangkok First Investment and Trust Public Company Limited to appoint the said company as bonds registrar and paying agent, and the Company has also entered into an agreement with Merrill Lynch Phatra Securities Company Limited to authorize the said company to offer and sell the aforesaid unsecured bonds. The Company agrees to pay fees and other expenses to both companies in accordance with terms and conditions prescribed in both agreements. Short-term bonds at March 31, 1998 represent unsecured bonds totaling 20,000 units, Baht 1,000 per unit, invested by executives of the parent company and directors of a subsidiary company. The said short-term bonds are repayable on January 26, 1999 with interest rate at the average rate of Minimum Loan Rate of the Thai Farmers Bank Public Company Limited and the Bangkok Bank Public Company Limited. Under the agreements between the Company and the Thai Farmers Bank Public Company Limited, whereas the latter has been appointed as bonds registrar and has been authorized to offer and to sell the said short-term unsecured bonds, the Company agrees to pay fees and other expenses to the said bank as prescribed in those agreements. Short-term bondholders as at March 31, are summarized as follow: Million Baht Consolidated Company's Separate Balance Sheets Balance Sheets 1999 1998 1999 1998 Related parties (Note 3) 122.90 20.00 122.90 20.00 Other bondholders 1,877.10 - 1,877.10 - Total 2,000.00 20.00 2,000.00 20.00 Accrued interest on short-term bonds at March 31, are summarized by type of bondholders as follow: Million Baht Consolidated Company's Separate Balance Sheets Balance Sheets 1999 1998 1999 1998 Related parties (Notes 3 & 13) 6.91 0.54 6.91 0.54 Others bondholders 105.53 - 105.53 - Total 112.44 0.54 112.44 0.54 NOTE 16 - LONG-TERM BONDS ISSUED BY ADVANCED INFO SERVICE PUBLIC COMPANY LIMITED Long-term bonds at March 31, 1999 represent unsecured bonds totaling 1,500,000 units, Baht 1,000 per unit. The said Long-term bonds are repayable from February 18, 2001 to March 5, 2002 with the fixed interest rate at 8.25% per annum. The Company has entered into an agreement with Bangkok First Investment and Trust Public Company Limited to appoint the said company as bonds registrar and paying agent, and the Company has also entered into an agreement with Deutsche Bank to authorize the said company to offer and sell the aforesaid unsecured bonds. The Company agrees to pay fees and other expenses to both companies in accordance with terms and conditions prescribed in both agreements. Long-term bonds at March 31, 1998 represent unsecured bonds totaling 2,000,000 units, Baht 1,000 per unit, invested by a major shareholder of the parent company. The said long-term bonds are repayable as from December 15, 2000 through January 26, 2001. Interest rate of the said bonds is at the average rate of Minimum Loan Rate of the Thai Farmers Bank Public Company Limited and the Bangkok Bank Public Company Limited. Under the agreements between the Company and the Thai Farmers Bank Public Company Limited, the Company agrees to pay fees and other expenses to the said bank as prescribed in those agreements. Long-term bondholders as at March 31, are summarized as follow: Million Baht Consolidated Company's Separate Balance Sheets Balance Sheets 1999 1998 1999 1998 Related parties (Note 3) 370.00 2,000.00 370.00 2,000.00 Other bondholders 1,130.00 - 1,130.00 - Total 1,500.00 2,000.00 1,500.00 2,000.00 Accrued interest on long-term bonds at March 31, are summarized by type of bondholders as follow: Million Baht Consolidated Company's Separate Balance Sheets Balance Sheets 1999 1998 1999 1998 Related parties (Notes 3 & 13) 2.26 33.84 2.26 33.84 Others bondholders 8.59 - 8.59 - Total 10.85 33.84 10.85 33.84 NOTE 17 - OTHER CURRENT LIABILITIES Other current liabilities at March 31, comprise: Million Baht Consolidated Company's Separate Balance Sheets Balance Sheets 1999 1998 1999 1998 Income tax payable 1,194.97 1,163.10 907.22 1,061.80 Other payables 182.66 134.43 180.57 131.10 Value added tax payable 126.77 - 134.23 - Equipment payables 97.76 68.75 96.59 67.71 Withholding income tax payable 21.94 40.63 20.06 36.09 Allowance for warranties on goods sold 40.55 - - - Others 32.69 22.03 5.43 7.09 Total 1,697.34 1,428.94 1,344.10 1,303.79 Other payables mainly comprise service costs being charged by the Communications Authority of Thailand, and share of service income being made to the Telephone Organization of Thailand. NOTE 18 - LONG-TERM LIABILITIES Long-term liabilities at March 31, comprise: Million Baht Consolidated Company's Separate Balance Sheets Balance Sheets 1999 1998 1999 1998 Loans from foreign banks 491.29 508.05 491.29 508.05 Syndicated loans from foreign banks 1,998.22 8,363.27 1,998.22 7,347.17 Loans from foreign finance companies 2,230.32 1,427.05 2,230.32 1,427.05 Loans from a foreign company - 45.03 - 45.03 Liabilities under financial leases 2.68 3.42 2.68 3.42 4,722.51 10,346.82 4,722.51 9,330.72 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 243.27 1,350.10 243.27 997.00 4,479.24 8,996.72 4,479.24 8,333.72 Less Current portion of long-term liabilities 2,146.24 2,734.55 2,146.24 2,071.55 Long-term Liabilities - net 2,333.00 6,262.17 2,333.00 6,262.17 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 currency under forward contracts, for future repayments of above loans, over the value under contracted exchange rates. Loans From Foreign Banks Loans from foreign banks as at March 31, 1999 and 1998 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 March 31, 1999 and 1998, outstanding loan balances under the aforesaid two loan agreements amounted to approximately Baht 491.29 million and Baht 508.05 million, respectively. (More)