SET Announcements

5.RELATED PARTY TRANSACTIONS A portion of sales of products and services, fees, other income, costs of sales and services and selling and administrative expenses are represented by transactions with their subsidiaries, associated and other related companies. These companies are related through common shareholdings and/or directorships. The accompanying interim financial statements reflect the effects of these transactions which arose in the ordinary course of business. Account balances with these related companies at June 30, 1999 and 1998 were shown separately in the balance sheets. - 7 - Significant transactions during the three-month and six-month periods ended June 30, 1999 and 1998 which included in the interim financial statements were as follows: In Thousand Baht Three-month periods ended June 30 Consolidated The Company 1999 1998 1999 1998 Sales of products and services 40,952 69,241 44,002 37,285 Fees and other income 35,485 2,860 44,309 2,991 Cost of sales and services 347 39,823 29,412 72,944 Selling and Administrative Expenses 1,445 4,534 15,278 800 In Thousand Baht Six-month periods ended June 30 Consolidated The Company 1999 1998 1999 1998 Sales of products and services 68,571 88,266 97,034 134,329 Fees and other income 36,661 8,492 53,635 13,386 Cost of sales and services 15,214 73,789 79,767 129,125 Selling and Administrative Expenses 3,174 4,534 30,034 3,066 6.ACCOUNTS RECEIVABLE - TRADE As at June 30, 1999, the Company had overdue accounts receivable-trade. The aging receivables were as follows: In Thousand Baht Consolidated The Company Over 3 months to 6 months 183,080 77,114 Over 6 months to 12 months 262,586 160,136 Over 12 months 686,954 451,857 Total 1,132,620 689,107 The Company and subsidiaries set up allowance for doubtful accounts for the period ended June 30, 1999 amounting to approximately Baht 297.66 million (Baht 215.71 million for the Company). Based on historical collection experience, the management believes that the allowance for doubtful accounts is adequate. - 8 - 7.INVESTMENTS IN SUBSIDIARIES, ASSOCIATED, RELATED AND OTHER COMPANIES These consisted of: Consolidated Percentage Fully Paid up Of Holding Nature of Business Relationship Share Capital 1999 1998 Associated Companies - At Equity Loxley CSR Insulation Company Produce and distribute glasswool Limited material Shareholders Baht 275,000,000 - 50 Saxon (Thailand) Company Limited Blending castrol lubricants Shareholders Baht 10,000,000 50 50 Castrol (Thailand) Company Limited Distribute lubricants Shareholders Baht 40,000,000 49 49 Thai Fiber Optic Company Limited Optic Cable Shareholders Baht 100,000,000 40 40 Ericsson Thai Network Company Limited Outside plant services Shareholders Baht 15,000,000 33 33 Lao Soft Drink Company Limited Produce and sale soft drink in Lao Shareholders Kip 1,383,452,576 30 30 Loxley Aluminium and Engineering Design and installation glass and Company Limited aluminium Shareholders Baht 54,000,000 30 30 Newspager Corporation Limited Sale and service of pager in USA Shareholders USD 4,896,895 27 27 Thai Cellulose Products Company Manufacturing of sodium Limited carboxy methyl cellulose Shareholders Baht 180,000,000 26 26 Lao Brewery Company Limited Produce and sale beer in Lao Shareholders Kip 13,640,021,581 26 26 BHP Steel Building Product (Thailand) Produce and distribute lysaght Company Limited metal sheet Shareholders Baht 83,500,000 25 25 Houay Ho Power Company Limited Hydropower Shareholders USD 50,000,000 20 20 Thai Flying Service Company Limited Aviation business Shareholders Baht 50,000,000 - 25 Related and Other Companies Available - for - sale securities - at fair value in 1999 and at the lower of the aggregate cost or the aggregate market value in 1998 Thai Telephone and Telecommunication Public Telephone service Company Limited concession Shareholders Baht 11,250,000,000 13 13 Phatra Insurance Public Company Limited Insurance business Shareholders Baht 200,000,000 8 8 General Investments - at cost BHP Steel (Thailand) Company Produce and distribute Limited lysaght metal sheet Shareholders Baht 2,500,000,000 18 18 The Preferred Shares - Subordinated Debentures of Thai Farmers Bank Plc. Fund Fund manager Shareholders Baht 40,000,000,000 0.25 - Space Imaging, Inc. Satellite photography Shareholders USD 252,000,000 0.8 0.8 - 9 - In Thousand Baht Investment - At Cost Investment - At Equity Dividend 1999 1998 1999 1998 1999 1998 Associated Companies - At Equity Loxley CSR Insulation Company Limited - 137,500 - - - - Saxon (Thailand) Company Limited 5,000 5,000 77,185 133,333 39,976 24,985 Castrol (Thailand) Company Limited 19,600 19,600 356,544 312,678 58,794 9,799 Thai Fiber Optic Company Limited 40,000 40,000 - 4,404 - - Ericsson Thai Network Company Limited 5,000 5,000 6,553 10,710 3,998 5,922 Lao Soft Drink Company Limited 25,715 25,715 32,071 44,656 5,340 9,702 Loxley Aluminium and Engineering Company Limited 16,135 16,135 - - - - Newspager Corporation Limited 98,746 98,746 29,365 38,667 - - Thai Cellulose Products Company Limited 46,800 46,800 - - - - Lao Brewery Company Limited 129,480 129,480 150,161 159,754 26,670 63,146 BHP Steel Building Product (Thailand) Company Limited 20,875 20,875 95,584 91,452 - - Houay Ho Power Company Limited 254,234 254,234 368,842 423,888 - - Thai Flying Service Company Limited - 16,875 - 12,440 - - Others 92,807 92,807 25,545 18,574 780 - Total 754,392 908,767 1,141,850 1,250,556 135,558 113,554 Related and Other Companies Available - for - sale securities - at fair value in 1999 and at the lower of the aggregate cost or the aggregate market value in 1998 Thai Telephone and Telecommunication Public Company Limited 2,011,435 1,753,873 - - Phatra Insurance Public Company Limited 194,279 35,621 13,061 14,530 Others 6,055 13,788 210 - Total 2,211,769 1,803,282 13,271 14,530 Less allowance for impairment in value of available - for - sale securities ( - ) ( 934,244) Net 2,211,769 869,038 General Investments - at cost BHP Steel (Thailand) Company Limited 450,000 450,000 - - The Preferred Shares - Subordinated Debentures of Thai Farmers Bank Plc. Fund 100,000 - 5,153 - Space Imaging, Inc. 51,133 51,133 - - Others 177,222 147,338 150 150 Total 778,355 648,471 5,303 150 Less allowance for impairment in value of general investments ( 20,000) ( - ) Net 758,355 648,471 - 10 - The Company Percentage Fully Paid up Of Holding Nature of Business Relationship Share Capital 1999 1998 Subsidiary Companies - At Equity Loxley Business Information Trading computer and Company Limited and subsidiaries banking information system Shareholders Baht 295,000,000 99 99 Loxley Myanmar Company Limited (not yet started principal commercial operations) International trading Shareholders Jad 1,000,000 99 99 Loxley Wireless Company Limited Sale and service of mobile phone Shareholders Baht 30,000,000 99 99 Jago Company Limited (not yet started principal commercial operations) Lottery on-line Shareholders Baht 330,000,000 99 99 Loxley Energy Company Limited (not yet started principal commercial operations) Electric power business Shareholders Baht 2,500,000 99 99 Loxley Utilities Services Sale and service waste Company Limited water treatment Shareholders Baht 15,000,000 90 90 Loxley Broadcast and Media Company Limited and subsidiary Broadcast and media/TV cable Shareholders Baht 79,000,000 74 60 Loxley Comware Company Limited Sale and service of network Shareholders Baht 7,000,000 70 70 Societed Commercial Lao Company Limited Commercial trading in Lao. Shareholders Kip 162,750,000 67 67 Loxley Newteck Company Limited Construction with polyurethane Shareholders Baht 20,000,000 67 67 Loxley Pacific Company Limited Telecommunication service Shareholders Baht 300,000,000 63 70 Loxley Infra Company Limited Projects consultant and construction utility Shareholders Baht 20,000,000 60 60 Loxley Pagephone Company Limited and subsidiary Sale of pager Shareholders Baht 230,000,000 55 55 Loxley Satellite Communications Company Limited (not yet started principal commercial operations) Satellite transmission services Shareholders Baht 10,000,000 51 51 Loxley Trading Company Limited Sale consumer product Shareholders Baht 50,000,000 50 50 Loxley Property Development Construction business and Company Limited building for rent Shareholders Baht 107,500,000 40 40 LoxData Company Limited Call center service Shareholders Baht 10,000,000 - 52 - 11 - In Thousand Baht Investment - At Cost Investment - At Equity Dividend 1999 1998 1999 1998 1999 1998 Subsidiary Companies - At Equity Loxley Business Information Company Limited and subsidiaries 294,200 164,200 310,476 171,897 - - Loxley Myanmar Company Limited (not yet started principal commercial operations) 4,197 4,197 1,856 2,039 - - Loxley Wireless Company Limited 30,000 30,000 31,174 24,036 - - Jago Company Limited (not yet started principal commercial operations) 330,000 330,000 330,000 330,000 - - Loxley Energy Company Limited (not yet started principal commercial operations) 2,499 2,499 1,248 2,520 - - Loxley Utilities Services Company Limited 2,000 2,000 - - - - Loxley Broadcast and Media Company Limited and subsidiary 58,600 30,600 - - - - Loxley Comware Company Limited 4,900 4,900 - - - - Societed Commercial Lao Company Limited 8,714 8,714 9,248 4,086 - - Loxley Newteck Company Limited 13,334 13,334 - 375 - - Loxley Pacific Company Limited 188,400 210,000 87,249 114,756 - - Loxley Infra Company Limited 12,000 12,000 11,193 6,479 - - Loxley Pagephone Company Limited and subsidiary 126,500 126,500 200,480 195,822 - - Loxley Satellite Communications Company Limited (not yet started principal commercial operations) 5,100 5,100 3,149 3,569 - - Loxley Trading Company Limited 25,000 25,000 139,340 108,411 - - Loxley Property Development Company Limited 43,000 43,000 30,956 32,752 - - LoxData Company Limited - 5,200 - 4,426 - - Total 1,148,444 1,017,244 1,156,369 1,001,168 - - (More)