TERIM FINANCIAL STATEMENTS FOR THE ENDED JUNE 30,2000

15 สิงหาคม 2543
2000 1999 2000 1999 2000 1999 2000 1999 (Restated) (Restated) (Restated) (Restated) Net sales 1,500 1,584 1,353 1,729 70 143 2,923 3,456 Cost of sales ( 946) (1,045) (1,133) (1,449) ( 46) ( 93) ( 2,125) (2,587) Gross profit 554 539 220 280 24 50 798 869 Operating profit 32 126 59 138 96 163 187 427 Dividend income from investments in other companies 19 19 Central expenses ( 180) ( 151) Interest expense ( 189) ( 213) Directors' remuneration ( 4) ( 2) Other expenses ( 215) ( 178) Equity in results of operations of associated companies - net 156 164 Loss on exchange rates ( 380) ( 12) Corporate income tax ( 34) 23 Minority interest in net (income) loss of subsidiaries 18 ( 14) Net income (loss) ( 622) 63 Fixed assets - net 767 781 23 29 891 984 1,681 1,794 Other assets 11,126 11,968 Total assets 12,807 13,762 - 25 - The Company Financial Statements In Million Baht Industrial and Information Consumer Technology Products Trading Others Total 2000 1999 2000 1999 2000 1999 2000 1999 Net sales 653 787 403 411 46 45 1,102 1,243 Cost of sales (510) (629) (333) (297) ( 29) ( 25) ( 872) ( 951) Gross profit 143 158 70 114 17 20 230 292 Operating profit 49 60 33 85 79 120 161 265 Dividend income from investments in other companies 19 19 Central expenses ( 180) ( 151) Interest expense ( 147) ( 144) Directors' remuneration ( 2) ( 1) Other expenses ( 205) ( 178) Equity in results of operations of subsidiaries and associated companies-net 113 202 Loss on exchange rates ( 377) ( 17) Corporate income tax - 57 Net income (loss) ( 618) 52 Fixed assets - net 56 62 13 20 483 556 552 638 Other assets 10,128 10,764 Total assets 10,680 11,402 The Company and subsidiaries operates in two major businesses, Information Technology and Industrial and Consumer Products Trading. Operating profit of each segment was determined by deducting costs and operating expenses from the total revenues. Central expenses, interest expense, directors' remuneration, other expenses and corporate income tax were exclusive from segment operating profit calculation. Fixed assets of each segment were assets used in those segments' operations. Other assets consisted mainly of cash on hand and at banks, inventories and investment in stocks. - 26 - 6.11 Agreements As at June 30, 2000 and 1999: a) A subsidiary has an agreement with the Telephone Organization of Thailand (TOT) for the latter to allow the subsidiary to provide paging services within an agreed period. By virtue of this agreement, the subsidiary is committed to transfer the ownership of communications network to TOT which subsequently grant right to use the network over the term of the license to the subsidiary. In this connection, the subsidiary has to pay compensations to TOT at the rates as stipulated in the agreement. Additional, the subsidiary was required to provide a bank guarantee of Baht 141.1 million to TOT to guarantee its performance. A portion of banks guarantees was collateralized by the pledge of fixed deposit account approximately Baht 18.8 million. b) A subsidiary and the Communication Authority of Thailand (CAT) have entered into an agreement to invest in the satellite transmission services project. By virtue of this agreement, the subsidiary is committed to supply, install, control and maintenance all tools and equipment as agreed in the agreement. In addition, the subsidiary must transfer the ownership of such tools and equipment to CAT at the first day on which service be rendered. The agreement shall be in effect for a period of twenty-two (22) years commencing from the first day on which service be rendered or twelve (12) months subsequently date of an agreement, whichever is occurrence, without cancellation right except for those specified in the agreement. During the period of agreement, the subsidiary has the right to charge service fee and other fees from the users as stipulated in the agreement. c) Two subsidiaries together with the Communication Authority of Thailand (CAT) have entered into an agreement to invest in the computer database services project. By virtue of this agreement, the subsidiaries are committed to supply, install, control and maintenance all tools and equipment as agreed in the agreement. In addition, the subsidiaries must transfer the ownership of such tools and equipment to CAT at the first day on which service be rendered. - 27 - This agreement shall be in effect for a period of ten (10) years commencing from the first day on which service be rendered, without cancellation right except for those specified in the agreement. During the period of agreement, the subsidiaries have the right to charge service fee and other fees from the users as stipulated in the agreement. d) A subsidiary had entered into a joint venture agreement with a foreign government to set up a telecommunication system and provide related services in agreed area. Under the terms of the agreement, the subsidiary is committed to supply, install, control and maintenance all communication network. In addition, the subsidiary must transfer the ownership of such communication network to that foreign government at the expiry date of the agreement. e) A subsidiary entered into a call service center agreement with certain local companies. The term of this agreement for a period of five (5) years commencing from August 19, 1997, without cancellation 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. This agreement shall be in effect for a period of ten (10) years, without cancellation right except for those specified in the agreement. 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. However, in November 1999, the subsidiary had submitted the letter to terminate the said agreement because GLO cannot comply with certain conditions in that agreement. The subsidiary is in the process of seeking recovery of compensation for this project through legal action. However, the subsidiary had already wrote - off the losses on that project in full. - 28 - 6.12 Commitments and Contingent Liabilities a) As at June 30, 2000, the Company had terminal station space agreements for a period of three (3) years commencing from December, 1999. Total annual rental is approximately Baht 16.7 million. b) The Company and subsidiaries had unused letters of credit of approximately Baht 222 million ( Baht 192 million for the Company) as at June 30, 2000 and Baht 366 million (Baht 350 million for the Company) as at June 30, 1999. c) 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 798 million (Baht 530 million for the Company) as at June 30, 2000 and Baht 455 million (Baht 212 million for the Company) as at June 30, 1999. d) The Company 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 217 million as at June 30, 2000 and Baht 200 million as at June 30, 1999. 6.13 Reclassification of accounts Certain accounts in the 1999 financial statements have been reclassified to conform with the 2000 financial statement presentation.