ข่าวแจ้งตลาดหลักทรัพย์

- 7 - 4.2 Change in the method of accounting for income taxes In December 1997, the Company adopted the generally accepted practice of providing for deferred income tax resulting from timing differences in reporting revenues and expenses for financial reporting purposes compared to income tax reporting purposes, effective retroactively to January 1, 1997. Accordingly, the income tax applicable to revenues and expenses which are not currently allowed and deductible for income tax purposes is set up as. "Deferred Income Tax" in the balance sheet. This will be allocated to future periods when such revenues and expenses provided for are actually incurred and considered allowed and deductible for income tax purposes. As a result of this change, net loss for the year ended December 31, 1997 decreased by approximately Baht 1,757.6 million, representing income tax applicable to the current year's timing differences (of approximately Baht 1,680 million) and cumulative income tax applicable to timing differences of prior years up to December 31, 1996 (of approximately Baht 77.6 million). The outstanding balance of "Deferred Income Tax" in the consolidated balance sheets as at December 31, 1998, included deferred income tax of a subsidiary amounting to approximately Baht 1.9 million. This subsidiary started adopting the generally accepted practice of providing for deferred income tax resulting from timing differences in reporting revenues and expenses for financial reporting purposes compared to income tax reporting purposes, effective retroactively to January 1, 1997. The Company, however, did not adjust cumulative effect of this accounting change in the 1997 consolidated financial statements because as at December 31, 1997, the Company owned share of the said company less than 50 percent. The financial statements of the other subsidiaries included in the consolidated financial statements did not include any adjustment effect from the change in the method of accounting for income tax. The management, however, believes that the effect on this matter was not material to the consolidated financial statements. - 8 - 4.3 Accounts Receivable - Trade and others These consist of : In Baht Consolidated The Company 1998 1997 1998 1997 Receivables from related companies 134,536,007 200,227,826 324,929,552 413,610,150 Less allowance for doubtful accounts - ( 21,756,955) - ( 103,296,955) Receivables from Related Companies - Net 134,536,007 178,470,871 324,929,552 310,313,195 Receivables from other companies 2,005,937,673 2,806,616,734 972,176,420 1,083,297,247 Less allowance for doubtful accounts ( 296,298,474) ( 230,402,504) ( 217,000,000) ( 81,703,045) Receivables from other companies - Net 1,709,639,199 2,576,214,230 755,176,420 1,001,594,202 As at December 31, 1998, the Company and subsidiaries had certain overdue accounts receivable-trade. The aging receivables were as follows: In Million Baht Consolidated The Company Over 3 months to 6 months 169.9 105.2 Over 6 months to 12 months 388.8 346.1 Over 12 months 361.8 205.6 Total 920.5 656.9 The Company and subsidiaries set up allowance for doubtful accounts for the year ended December 31, 1998 amounting to approximately Baht 296.3 million (Baht 217 million for the Company). Based on historical collection experience, the management believes that the allowance for doubtful accounts is adequate. - 9 - 4.4 Inventories These consist of: In Baht Consolidated The Company 1998 1997 1998 1997 Merchandise inventories 607,114,517 851,804,173 282,196,561 582,221,609 Project material 452,615,446 992,868,733 405,908,462 945,389,272 Goods in transit 3,082,959 11,315,136 3,082,959 11,315,136 Total 1,062,812,922 1,855,988,042 691,187,982 1,538,926,017 Less allowance for decline in value ( 88,444,142) ( 39,078,576) ( 79,000,000) ( 30,000,000) Net 974,368,780 1,816,909,466 612,187,982 1,508,926,017 - 13 - As at December 31, 1998 and 1997, the aggregate market value of investments in listed securities was lower than the aggregate cost by approximately Baht 915.3 million and Baht 1,068 million, respectively. The valuation adjustment was recorded as "Provision for unrealized loss on decline value of long-term investments in listed securities" and presented as part of "Capital Deficiency" in the Balance Sheets. The Company accounted for the investments in Loxley Hitachi Cable Engineering Company Limited and investments in Thai Telephone and Telecommunication Public Company Limited by the equity method. Subsequently in 1997 and 1996, the Company sold a portion of investments which effected the percentage of shareholding in the said companies reduced to be less than 20%. As a result, the Company changed the accounting method for these investments to the cost method by using the outstanding balance of investments under the equity method as the cost of the investments. 4.6 Long-Term Loans to Related Companies Consolidated These consist of: In Thousand Baht Interest Rate Amount Objective 1998 1997 1998 1997 Short - Term Loans L.B.L. Algamate Partnership Ltd. For operations MOR MOR 238,850 184,850 Multimedia Telephony, Inc. (Philippines) For operations 15.00% 15.00% 93,044 120,364 Others 36,630 167,131 Total Short-Term Loans 368,524 472,345 Less Allowance for Doubtful Accounts ( 10,400) - Short-term Loans-Net 358,124 472,345 Long-Term Loans Thai Telephone and Telecommunication Public Company Limited For operations MLR+0.5% MLR+0.5% 375,000 375,000 Others 34,186 21,348 Total Long-Term Loans 409,186 396,348 - 14 - The Company These consist of: In Thousand Baht Interest Rate Amount Objective 1998 1997 1998 1997 Short-Term Loans L.B.L Algamate Partnership Ltd. For operations MOR MOR 238,850 184,850 Multimedia Telephony, Inc. (Philippines) For operations 15.00% 15.00% 93,044 120,364 Others 52,881 101,632 Total Short-Term Loans 384,775 406,846 Less Allowance for Doubtful Accounts ( 10,400) - Short-Term Loans - Net 374,375 406,846 Long-Term Loans Thai Telephone and Telecommunication Public Company Limited For operations MLR+0.5% MLR+0.5% 375,000 375,000 4.7 Property and Equipment These consist of: In Baht Consolidated The Company 1998 1997 1998 1997 At Appraised Value Land - at cost 48,072,500 48,072,500 48,072,500 48,072,500 Revaluation increment in land 205,481,500 205,481,500 205,481,500 205,481,500 Land - at appraised value 253,554,000 253,554,000 253,554,000 253,554,000 At Cost Land 41,349,635 41,470,052 5,123,993 5,123,993 Buildings and improvements 1,100,819,637 1,058,021,694 463,856,641 453,259,986 Furniture, fixtures and office equipment 1,034,998,912 987,551,800 382,493,382 382,876,186 Tool and equipment 74,470,654 114,110,727 - - - 15 - In Baht Consolidated The Company 1998 1997 1998 1997 Equipment held for lease 64,236,420 24,491,933 39,996,205 25,445,346 Transportation equipment 59,954,213 67,081,206 38,021,977 44,355,357 Communication network (Note 4.19) 536,670,516 508,336,779 - - Construction in progress 2,164,030 29,744,932 63,000 971,632 Total 3,168,218,017 3,084,363,123 1,183,109,198 1,165,586,500 Less accumulated depreciation (1,121,439,747) ( 911,034,042) ( 514,680,703) ( 420,561,145) Land, Property and Equipment - Net 2,046,778,270 2,173,329,081 668,428,495 745,025,355 In 1997, the Company appraised its land, previously recorded at cost amounting to approximately Baht 48.1 million, at appraised value totalling approximately Baht 253.6 million. The Company appraised the said land based on the information guidelines provided by an independent appraiser. The revaluation increment in land, totalling approximately Baht 205.5 million, was credited to "Revaluation Increment in Land" which was shown under "Capital Deficiency" in the balance sheets. The "Revaluation Increment in Land" is not available for dividend distributions. Depreciation charges which were included as part of costs and expenses for the years ended December 31, amounted to approximately Baht 277.7 million (Baht 116.9 million for the Company) in 1998 and Baht 264.7 million (Baht 114.6 million for the Company) in 1997. - 16 - 4.8 Other Assets These consist of: In Baht Consolidated The Company 1998 1997 1998 1997 Deferred income tax (Note 4.2) 1,341,955,112 1,757,576,157 1,340,003,866 1,757,576,157 Excess of investments over net assets of subsidiaries - net (Note 2) 162,322,716 181,319,983 - - Deferred underwriting fees for issuing Euro Convertible Bonds - net 56,302,263 89,813,283 56,302,263 89,813,283 Income taxes deducted at sources - net 90,427,933 77,785,814 40,000,707 37,961,125 Refundable deposits and others 414,450,526 400,886,567 22,225,628 31,689,458 Total 2,065,458,550 2,507,381,804 1,458,532,464 1,917,040,023 4.9 Bank Overdrafts and Loans From Financial Institutions These consist of: In Baht Consolidated The Company 1998 1997 1998 1997 Bank overdrafts 293,512,187 354,370,456 10,947,245 4,815,283 Short-term loans from local and foreign banks 842,893,100 1,291,374,537 384,559,200 549,870,000 Acceptances payable and liabilities under trust receipts 396,357,094 476,986,580 347,155,281 411,308,871 Promissory notes 56,000,000 178,000,000 - - Total 1,588,762,381 2,300,731,573 742,661,726 965,994,154 (More)