US$ 38 million (Baht 36.27 - Baht 41.00/US$) - - 1,617 - US$ 52 million (Baht 36.27 - Baht 42.525/US$) 2,205 - - - EUR 3 million (Baht 35.75 - Baht 37.09/EUR) 113 - - - JPY 600 million (Baht 0.3765 - Baht 0.3796/JPY) 235 - 235 - US$ 47 million (Baht 37.21 - Baht 39.35/US$) - 1,773 - 1,773 DEM 6 million (Baht 21.40/DEM) - - - 118 DEM 6 million (Baht 20.44 - Baht 21.40/DEM) - 122 - - 2,553 1,895 1,852 1,891 16 Financial instruments (continued) Principal only swaps Principal only swap contracts are entered into to manage exposure of fluctuations in foreign currency exchange rates on specific transactions. At 31 December 1999, the settlement dates on open principal only swap contracts ranged between 9 months to 2 years and 3 months. The amounts to be received and contractual exchange rates of the outstanding contracts are: Consolidated Company 30 September 31 December 30 September 31 December 2000 1999 2000 1999 Million Baht Million Baht Million Baht Million Baht US$ 50 million (Baht 38.28 - Baht 38.42/US$) - 1,864 - 1,864 On 7 April 2000, the Company has shortened all of outstanding principal only swaps amounting to USD 39 million due to early repayments of foreign loans and incurring a penalty of Baht 43 million. Net fair values The net fair values of the derivative financial instruments at 30 September 2000 are: Consolidated Company Million Baht Million Baht Favourable forward foreign exchange contracts 6 6 Unfavourable forward foreign exchange contracts (12) (3) Net (6) 3 The fair values of interest rate swap contracts, forward foreign exchange contracts and principal only swap contracts have been calculated using a quoted market price rate to terminate the contracts at the balance sheet date. 17 Commitments - As at 30 September 2000, the Group and the Company have commitments in respect of the construction and installation of mobile phone networks, which have not been completed, and purchases of property and equipment as follows: Consolidated Company Million Million Construction and installation of mobile phone networks Thai Baht 2,786 2,786 US Dollars 54 54 Japanese Yen 1,840 1,840 Deutsche Marks 1 1 Euro 14 14 Property and equipment Thai Baht 10 5 - The Group has commitments under letters of credit with overseas suppliers amounting to approximately Baht 58 million on a consolidated basis and Baht 12 million on a company basis. - The company has entered into service agreements for maintenance hardware and software mobile phone networks are as follows : Company Million Maintenance hardware US Dollars 5 Euro 1 - The Group has entered into lease and related service agreements for office spaces, cars, and base stations for periods ranging from 4 months to 17 years with options to renew. As at 30 September 2000, the Group is committed to pay for rental and related services in respect of the agreements as follows: Consolidated Company Million Baht Million Baht Payment due - within 1 year - Third parties 280 248 - Related companies 157 141 - within 2 to 5 years - Third parties 347 321 - Related companies 285 285 - over 5 years - Third parties 5 5 - Related companies 451 451 - The Company has entered into agreements with a related company under which the related company provides satellite transponder services. The Company is committed to pay for the transponder services amounting to approximately Baht 72 million within 1 year. 17 Commitments (continued) - The Company's subsidiary has entered into a Data Broadcast via satellite agreement with TOT for a period of 5 years with option to renew. The subsidiary is committed to pay rental cost at Baht 35,000 per site per month for the master network and Baht 4,000 per site per month for the remote network as set out in the agreement. - The Company has entered into agreements with a related company under which the related company provides consulting and management services and other central services for a twelve-month period. The Company is committed to pay for such services under these agreements amounting to approximately Baht 4 million per month and plus the rate per events as prescribed in the agreements. - The Company has entered into agreements with a related company under which the related company provides computer system services and repair and maintenance services for software and hardware for a twelve-month period. The Company is committed to pay for such services under these agreements amounting to approximately Baht 1 million per month. 18 Bank guarantees As at 30 September 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 4,948 million on a consolidated basis and Baht 4,838 million on a company basis. 19 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. 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 20 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 30 September Consolidated Company 2000 1999 2000 1999 Million Baht Million Baht Million Baht Million Baht Service income Subsidiary Advanced Wireless Marketing Co., Ltd. - - 5 4 - - 5 4 Related companies Singapore Telecom Mobile Pte Ltd. 36 111 36 111 Others 118 4 1 2 154 115 37 113 Total service income 154 115 42 117 Sales of prepaid cards Subsidiary Advanced Wireless Marketing Co., Ltd. - - 307 - For the nine-month periods ended 30 September Consolidated Company 2000 1999 2000 1999 Million Baht Million Baht Million Baht Million Baht Service income Subsidiary Advanced Wireless Marketing Co., Ltd. - - 12 10 - - 12 10 Related companies Singapore Telecom Mobile Pte Ltd. 116 111 116 111 Others 128 8 4 5 244 119 120 116 Total service income 244 119 132 126 Sales of prepaid cards Subsidiary Advanced Wireless Marketing Co., Ltd. - - 588 - 20 Related company transactions (continued) b) Purchases of services For the three-month periods ended 30 September 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. - - 9 12 Others - - 3 - - - 12 12 Related companies Shin Satellite Public Co., Ltd. 17 22 17 22 Singapore Telecom Mobile Pte Ltd. 16 - 16 - SC Asset Co., Ltd. 17 8 11 8 SC Office Park Co., Ltd. 9 5 6 5 Tele Info Media Co., Ltd. 9 6 9 5 Upcountry Land Co., Ltd. 27 21 27 21 OAI Leasing Co., Ltd. 9 7 9 7 OAI Asset Co., Ltd. 37 29 34 29 Others 21 58 10 1 162 156 139 98 Total rental and other service expenses 162 156 151 110 Advertising expenses Related companies SC Matchbox Co., Ltd. 179 195 14 30 Total advertising expenses 179 195 14 30 Consulting and management fees Related companies Shin Corporations Public Co., Ltd. 25 19 25 19 I.T.Applications and Services Co., Ltd. 1 - 1 - Shinawatra Information Technology Co., Ltd. 2 2 2 2 Total consulting and management fees 28 21 28 21 20 Related company transactions (continued) b) Purchases of services (continued) For the three-month periods ended 30 September Consolidated Company 2000 1999 2000 1999 Million Baht Million Baht Million Baht Million Baht Interest expenses Related companies Shin Corporations Public Co., Ltd. - 27 - 27 A major shareholder of related companies 11 - 11 - Directors of a related company and the Company - 8 - 8 Total interest expenses 11 35 11 35 For the nine-month periods ended 30 September 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. - - 32 40 Others - - 13 2 - - 45 42 Related companies Shin Satellite Public Co., Ltd. 60 93 60 93 Singapore Telecom Mobile Pte Ltd. 16 - 16 - Shin Corporations Public Co., Ltd. 2 3 2 2 SC Asset Co., Ltd. 45 29 28 19 SC Office Park Co., Ltd. 27 10 19 7 Tele Info Media Co., Ltd. 24 12 24 12 Upcountry Land Co., Ltd. 71 63 71 63 OAI Leasing Co., Ltd. 28 27 26 21 OAI Asset Co., Ltd. 106 100 91 80 Others 59 97 28 24 438 434 365 321 Total rental and other service expenses 438 434 410 363 Advertising expenses Related companies SC Matchbox Co., Ltd. 440 359 55 48 Others 5 - 1 - Total advertising expenses 445 359 56 48 20 Related company transactions (continued) b) Purchases of services (continued) For the nine-month periods ended 30 September Consolidated Company 2000 1999 2000 1999 Million Baht Million Baht Million Baht Million Baht Consulting and management fees Related companies Shin Corporations Public Co., Ltd. 65 56 65 56 I.T.Applications and Services Co., Ltd. 3 - 3 - Shinawatra Information Technology Co., Ltd. 6 7 6 7 Total consulting and management fees 74 63 74 63 Interest expenses Subsidiaries - - 8 - Related companies Shin Corporations Public Co., Ltd. 1 41 1 41 A major shareholder of related companies 30 54 30 54 Directors of a related company and the company - 1 - 1 31 96 31 96 Total interest expenses 31 96 39 96 c) Purchased of property and equipment and computer software For the three-month periods ended 30 September Consolidated Company 2000 1999 2000 1999 Million Baht Million Baht Million Baht Million Baht Subsidiaries - - 2 5 Related companies 3 11 3 1 3 11 5 6 20 Related company transactions (continued) c) Purchased of property and equipment and computer software (continued) For the nine-month periods ended 30 September Consolidated Company 2000 1999 2000 1999 Million Baht Million Baht Million Baht Million Baht Subsidiaries - - 4 5 Related companies 11 18 5 12 11 18 9 17 d) Purchases of cost of mobile phone and pager service networks and Datanet tools and equipment under concession agreements For the nine-month periods ended 30 September Consolidated Company 2000 1999 2000 1999 Million Baht Million Baht Million Baht Million Baht Related company Shinawatra Information Technology Co., Ltd. - 1 - 1 e) Outstanding balance arising from sales/purchases of goods/services and loans from related companies Consolidated Company 30 September 31 December 30 September 31 December 2000 1999 2000 1999 Million Baht Million Baht Million Baht Million Baht Trade accounts receivable Subsidiary Advanced Wireless Marketing Co., Ltd. - - 190 47 Related companies Singapore Telecom Mobile Pte Ltd. 84 37 84 37 Others 129 5 - - 213 42 84 37 Total trade accounts receivable 213 42 274 84 Amounts due from related companies (more)