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14 พฤษภาคม 2542

FINANCIAL STATEMENTS QUARTER 1/1999

-3- 2.7 Deferred right to use property Deferred right to use property is amortized by the remaining periods of concession or by the straight-line method based on the estimated useful lives of assets in 5-20 years. 2.8 Deferred pictures rental, picture products, plays and copyright charges Pictures rental are amortized by the straight-line method according to the period specified in the agreement or portion of pictures transmission as specified in the agreement or according to the right as obtained for transmission. Picture products are amortized to cost by the ratio of revenues received based on the estimated total revenues. Plays charges are amortized by the straight-line method in 5 years. Copyright charges are amortized by the straight-line method according to the period specified in the agreement. 2.9 Deferred expenses Other deferred expenses are amortized by the straight-line method within 5 years. 2.10 Goodwill Goodwill is amortized by the straight-line method in 5 years. 2.11 Earnings per share Earnings per share are calculated by dividing the net income by the number of issued and paid-up share capital at the end of the period. 2.12 Foreign currency transactions Foreign currency transactions are recorded in Baht at the rate ruling at the date of transaction. Outstanding foreign currency assets and liabilities at the balance sheet date are converted to Baht at the rates of exchange in effect at that date. Gains or losses on exchange rates are credited or charged to current operations during the period. -4- For preparation of the consolidated financial statements, the financial statements of subsidiaries denominated in foreign currencies are converted to Baht based on the following exchange rates : - Assets and liabilities were translated by the average of exchange rates at the ended of the period. - Non - cash assets and Shareholders' equity were translated by the exchange rates in effect at that date. The adjustment from translation of financial statements in foreign currencies was shown under Shareholders' Equity. 3. QUALITY OF ASSETS The Company has invested and carried on business with the companies which become default as at March 31, 1999 as follows : 3.1 Trade accounts receivable which become default can be classified according to the aging as follows: (THOUSAND BAHT) AGING T0HE GROUP THE COMPANYONLY Over 2 to 3 months 5,336 - Over 3 to 6 months 17,585 902 Over 6 to 12 months 8,407 - Over 12 months 24,564 404 Total 55,892 1,306 Allowance for doubtful accounts 36,717 927 -5- 3.2 Deposits with financial institutions are the exchange of promissory notes issued by the financial institutions which were ordered to close their operations permanently by the Finance Ministry. The promissory notes are replaced by promissory notes issued by Krung Thai Thanakit Public Company Limited and the certificates of deposit issued by Krung Thai Bank Public Company Limited. Such promissory notes and certificates of deposit are forbidden to redeem before 3-5 years of maturity. No provision is made due to the Government guarantee. (MILLION BAHT) THE GROUP THE COMPANY ONLY 1999 1998 1999 1998 Promissory notes 280.09 280.09 94.32 94.32 Certificates of deposit 71.05 71.05 - - TOTAL 351.14 351.14 94.32 94.32 4. SHORT-TERM LOANS TO RELATED PARTIES (THOUSAND BAHT) THE GROUP THE COMPANY INTEREST RATE ( % ) 1999 1998 1999 1998 1999 1998 LOANS TO -SUBSIDIARIES 1. THE BANGKOK ENTERTAINMENT CO., LTD. - - 800,000 800,000 12.25 10.00 2. YOU & I CORPORATION CO., LTD. - - 168,328 75,176 5.75-15.25 10.00-11.50 3. 3 MEDIA CO., LTD. - - 5,000 15,340 6.75 10.00 4. BEC STUDIO CO., LTD. - - - 207 - 10.00-11.50 5. BEC INTERNATIONAL DISTRIBUTION CO., LTD. - - 1,421 1,289 6.75-12.25 10.00-11.50 6. BEC NEWS BUREAU CO., LTD. - - - 207 - 10.00-11.50 7. BANGKOK CABLE TELEVISION SYSTEMS CO., LTD. - - 80,243 69,647 5.75-12.25 10.00-11.50 8. BANGKOK SATELLITE & TELECOMMUNICATION CO., LTD. - - - 1,583 - 10.00-11.50 -6- (THOUSAND BAHT) THE GROUP THE COMPANY INTEREST RATE ( % ) 1999 1998 1999 1998 1999 1998 9. SATELLITE BROADCASTING SYSTEM CO., LTD. - - - 100 - 11.50 10. SATELLITE TV BROADCASTING CO., LTD. - - - 200 - 11.50 11. BEC-TERO ENTERTAINMENT CO., LTD. - - 15,000 - 5.75-6.75 - TOTAL SHORT-TERM LOANS TO SUBSIDIARIES - - 1,069,992 963,749 -RELATED PARTIES 1.INFO BIZ CO., LTD. 27,421 24,375 27,421 24,375 14.75 12.50 2.INFO PACIFIC CORPORATION LTD. 20,054 17,825 20,054 17,825 14.75 12.50 3.BANGKOK TELEMEDIA-NETWORK SERVICE CO., LTD. - 250 - 250 - 11.50 TOTAL SHORT-TERM LOANS TO RELATED PARTIES 47,475 42,450 47,475 42,450 TOTAL 47,475 42,450 1,117,467 1,006,199 5. INVESTMENTS IN SUBSIDIARIES AND ASSOCIATE AND INVESTMENTS DEFICIENCY (THOUSAND BAHT) % HOLDING COST METHOD EQUITY METHOD 1999 1998 1999 1998 1999 1998 SUBSIDIARIES 1. THE BANGKOK ENTERTAINMENT CO., LTD. 99.99 99.99 299,999 299,999 1,257,260 1,493,913 2. RUNGSIROJVANIT CO., LTD. 99.99 99.99 35,000 35,000 1,121,582 763,146 3. NEW WORLD PRODUCTION CO., LTD. 99.99 99.99 59,999 59,999 923,440 660,538 4. ARIYAWATANA CO., LTD. 99.99 99.99 42,997 42,997 616,435 544,180 5. YOU & I CORPORATION CO., LTD. 99.99 99.99 34,999 34,999 (101,170) (4,920) 6. 3 MEDIA CO., LTD. 99.99 99.99 30,000 30,000 9,701 14,650 7. BEC STUDIO CO., LTD. 99.99 99.99 5,000 5,000 6,350 5,897 8. BEC INTERNATIONAL DISTRIBUTION CO., LTD. 99.99 99.99 5,000 5,000 46 7,754 9. BEC NEWS BUREAU CO., LTD. 99.99 99.99 5,000 5,000 6,348 5,895 10. BANGKOK CABLE TELEVISION SYSTEMS CO., LTD. 99.99 99.99 5,000 5,000 (78,398) (55,751) 11. BANGKOK SATELLITE & TELECOMMUNICATION CO., LTD. 99.99 99.99 25,000 25,000 32,741 30,222 12. SATELLITE BROADCASTING SYSTEM CO., LTD. 99.99 99.99 1,000 1,000 1,146 1,085 -7- (THOUSAND BAHT) %HOLDING COST METHOD EQUITY METHOD 1999 1998 1999 1998 1999 1998 13. SATELLITE TV BROADCASTING CO., LTD. 99.99 99.99 1,000 1,000 724 733 14. BEC-TERO ENTERTAINMENT CO., LTD. 59.99 - 8,116 - (8,891) - TOTAL INVESTMENTS IN SUBSIDIARIES 558,110 549,994 3,975,773 3,528,013 TOTAL INVESTMENTS DEFICIENCY - - (188,459) (60,671) ASSOCIATE 1. CVD ENTERTAINMENT PUBLIC COMPANY LIMITED 20.00 - 328,847 328,847 260,126 319,116 TOTAL INVESTMENTS IN SUBSIDIARIES AND ASSOCIATE 886,957 878,841 4,235,899 3,847,129 TOTAL INVESTMENTS DEFICIENCY - - (188,459) (60,671) Due to some subsidiary companies have capital deficiency on March 31, 1999 and 1998, therefore, the amount of investments in subsidiaries by equity method was presented in liabilities under "investments deficiency". The financial statements of CVD Entertainment Public Company Limited are based on financial data prepared by the management of such company without any review of auditors. The Company's portion recorded in the consolidated financial statements and the Company only is immaterial. The Company invested in stocks of CVD Entertainment Public Company Limited which is listed company in the Stock Exchange of Thailand amount of 7.20 million shares. The market value as at March 31, 1999 and 1998 is equal to Baht 36 million and Baht 162 million, respectively. The Company invested in BEC - TERO Entertainment Company Limited of 599,995 ordinary shares at Baht 10 each with the acquisition expenses of Baht 2.12 million, totalling investments are Baht 8.12 million. The financial statements of BEC - TERO (YANGON) COMPANY LIMITED which is located in the Union of Myanmar holding by subsidiary and is partly included in the consolidated financial statements for the three - month period ended March 31, 1999, based on the data prepared by the management which the amount is immaterial and such subsidiary company has not operated. (More)