SET Announcements

- 12 - e) A subsidiary entered into a call service center agreement with ertain local companies. The term of this agreement for a period of five (5) years commencing from August 19, 1997, without can cellation right except for those specified in the agreement, the subsidiary has the right to charge service fee as stipulated in the agreement. f) A subsidiary entered into a distribute on-line charitable lotteries and award prizes agreement with the Thai Government Lottery Office (GLO). Under the terms of the agreement, the subsidiary is committed to supply and install distribute on-line lottery equipment and shall have to comply with certain conditions and restrictions as specified in the agreement. The subsidiary, however, has not yet installed the equipment since the Government temporary delayed this project for survey the public hearing and in theprocess of negotiation additional conditions with GLO. The manag ement of subsidiary believes that this project can be operated in the future, therefore, the subsidiary did not set up any contingent losses in the books of accounts if this project was restrained. This agreement shall be in effect for a period of ten (10) years, without cancellation right except for those specified in theagreement. During the period of the agreement, the subsidiary has the right to charge service fee from distribution the said lottery as stipulated in the agreement. 9. COMMITMENTS AND CONTINGENT LIABILITIES As at March 31, a) The Company and subsidiaries had unused letters of credit of approximately Baht 925 million (Baht 580 million for the Company) in 1998 and Baht 1,865 million (Baht 1,348 million for the Company) in 1997. b) The Company and subsidiaries were contingently liable to their customers for the tender guarantees. These tender guarantees were covered by the banks letters of guarantee totalling approximately Baht 2,056 million (Baht 981 million for the Company) in 1998 and Baht 1,715 million (Baht 784 million for the Company) in 1997. c) The Company and subsidiaries had commitments under the contracts with certain banks whereby the Company committed to buy certain foreign currencies at the forward rates at the amount equivalent to approximately Baht 1,151 million (Baht 1,135 million for the Company) in 1998 and Baht 7 million (Baht 7 million for the Company) in 1997. d) A subsidiary was contingently liable to banks for the guarantee of a joint ventures liabilities totalling approximately Baht 133 million in 1997. - 13 - 10. RECLASSIFICATION OF ACCOUNTS Certain accounts in the 1997 interim financial statements have been reclassified to conform with the 1998 interim financial statements presentation.