SET Announcements

Loss on impaired assets 31,780 - 31,780 - Increase (decrease) in minority interest 3,261 (3,989) - - (INCREASE) DECREASE IN OPERATING ASSETS Trade accounts and notes receivable (29,938) 24,765 3,395 6,412 Inventories 124 (1,290) - - Interest receivable 4,345 4,984 (14,020) (29,105) Other current assets 8,199 (23,528) 1,755 (418) Deposit on pictures copyright charges (1,429) (9,388) (256) (9,388) Other assets 5,366 3,459 2,696 3,500 Notes to the interim financial statements form an integral part of these statements. UNAUDITED REVIEWED BEC WORLD PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE THREE-MONTH PERIODS ENDED SEPTEMBER 30, THOUSAND BAHT THE GROUP THE COMPANY ONLY 1999 1998 1999 1998 INCREASE (DECREASE) IN OPERATING LIABILITIES Accounts payable (35,427) (41,497) (40,617) (46,418) Income tax payable 87,947 140,063 18,349 63,049 Other current liabilities 16,419 (4,734) (1,128) (7,266) ADJUSTMENT FROM THE TRANSLATION OF SUBSIDIARY'S FINANCIAL STATEMENTS 191 - - - NET CASH PROVIDED FROM OPERATING ACTIVITIES 564,372 585,272 98,310 185,511 CASH FLOWS FROM INVESTING ACTIVITIES Decrease (increase) in deposits with financial institutions 823,202 (603,311) 19,801 (177,178) Decrease (increase) in fixed deposit with banks (1,166,705) 169,419 (74,081) (114,205) Purchase of equipments (67,810) (3,563) (2,158) (2,737) Proceeds from equipment disposal 771 9 654 - Proceeds from dividends - - - 199,999 Increase in pictures rental, picture products, plays and copyright charges (197,619) (160,128) (47,444) (71,790) (Increase) decrease in short-term loans to related parties (4,000) (4,000) 374 (29,898) Increase in right to use property (26,684) (908) - - NET CASH USED IN INVESTING ACTIVITIES (638,845) (602,482) (102,854) (195,809) CASH FLOWS FROM FINANCING ACTIVITIES Increase (decrease) in bank overdrafts and loans from financial institutions 415 (322) - - Increase in advance from directors 1,179 1,285 - - Increase in short-term loans from other company - 6,000 - - Repayment for long-term lease payable (53) (55) - - NET CASH PROVIDED FROM FINANCING ACTIVITIES 1,541 6,908 - - Notes to the interim financial statements form an integral part of these statements. UNAUDITED REVIEWED BEC WORLD PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE THREE-MONTH PERIODS ENDED SEPTEMBER 30, THOUSAND BAHT THE GROUP THE COMPANY ONLY 1999 1998 1999 1998 NET DECREASE IN CASH ON HAND AND AT BANKS (72,932) (10,302) (4,544) (10,298) CASH ON HAND AND AT BANKS AS AT JULY 1 220,587 104,112 22,567 12,738 CASH ON HAND AND AT BANKS AS AT SEPTEMBER 30 147,655 93,810 18,023 2,440 ADDITIONAL DISCLOSURE ITEMS TO CASH FLOWS STATEMENTS : CASH ON HAND AND AT BANKS PAID DURING THE PERIODS FOR : Interest expenses 42 51 - - Income tax 19,097 20,056 4,141 5,949 Notes to the interim financial statements form an integral part of these statements. UNAUDITED REVIEWED BEC WORLD PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, THOUSAND BAHT THE GROUP THE COMPANY ONLY 1999 1998 1999 1998 CASH FLOWS FROM OPERATING ACTIVITIES Net Income 754,599 1,036,044 754,599 1,036,044 ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED FROM (USED IN) OPERATION Depreciation 45,269 48,764 5,338 6,132 Amortization of right to use property 98,842 98,477 - - Amortization of pictures rental, plays, picture products and copyright charges 489,197 349,553 185,093 150,937 Amortization of goodwill 9,568 9,462 - - Amortization of expenses 7,626 2,710 - - Bad debts - 845 - - Decrease in allowance for doubtful debts (8,380) (518) (1,282) (611) (Gain) loss on assets disposal 1,346 7 45 (5) Loss on unused assets 17,103 383 99 - Loss on permanent diminishing value of securities - 1,001 - - (Gain) loss on exchange rate 8,032 (9,576) 4,041 (7,292) Allowance for diminution in value of inventories 901 - - - Company's portion in net income of subsidiaries - - (551,340) (621,170) Company's portion in net loss of associate 12,577 34,162 12,577 34,162 Loss on impaired assets 31,780 31,780 Decrease in minority interest (2,473) (7,661) - - (INCREASE) DECREASE IN OPERATING ASSETS Trade accounts and notes receivable (28,823) 64,665 (2,088) (3,179) Inventories 23 (830) - - Interest receivable 36,004 30,785 63,599 40,735 Other current assets (70,410) (34,578) 2,759 (2,081) Deposit on pictures copyright charges (11,060) (9,388) (18,020) (9,388) Other assets 2,185 (9,013) 405 (1,057) Notes to the interim financial statements form an integral part of these statements. UNAUDITED REVIEWED BEC WORLD PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, THOUSAND BAHT THE GROUP THE COMPANY ONLY 1999 1998 1999 1998 INCREASE (DECREASE) IN OPERATING LIABILITIES Accounts payable (56,198) 13,212 (81,660) 21,141 Income tax payable (262,219) 108,692 (133,118) 77,450 Other current liabilities (41,090) (63,851) (765) (5,928) ADJUSTMENT FROM THE TRANSLATION OF SUBSIDIARY'S FINANCIAL STATEMENTS 202 - - - NET CASH PROVIDED FROM OPERATING ACTIVITIES 1,034,601 1,663,347 272,062 715,890 CASH FLOWS FROM INVESTING ACTIVITIES Decrease (increase) in deposits with financial institutions 746,258 (738,405) 152,136 (267,324) Decrease in fixed deposit with banks 281,976 932,555 1,192,161 710,593 Increase in investments in subsidiaries - (2,131) - (8,116) Purchase of equipments (116,249) (13,946) (4,022) (4,441) Proceeds from equipment disposal 4,436 37 670 5 Proceeds from copyright disposal - 185 - - Proceeds from dividends - 3,240 - 403,239 Increase in pictures rental, picture products, plays and copyright charges (602,241) (585,321) (214,848) (291,598) Increase in short-term loans to related parties (11,003) (11,025) (90,483) (70,848) Increase in right to use property (27,917) (42,994) - - NET CASH PROVIDED FROM (USED IN) INVESTING ACTIVITIES 275,260 (457,805) 1,035,614 471,510 CASH FLOWS FROM FINANCING ACTIVITIES Increase (decrease) in bank overdrafts and loans from financial institutions 1,356 (764) - - Increase in advance from directors 2,358 1,285 - - Increase in short-term loans from other company - 6,000 - - Repayment for long-term lease payable (173) (167) - - Dividends payment (1,300,000) (1,200,000) (1,300,000) (1,200,000) NET CASH USED IN FINANCING ACTIVITIES (1,296,459) (1,193,646) (1,300,000) (1,200,000) Notes to the interim financial statements form an integral part of these statements. UNAUDITED REVIEWED BEC WORLD PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, THOUSAND BAHT THE GROUP THE COMPANY ONLY 1999 1998 1999 1998 NET INCREASE (DECREASE) IN CASH ON HAND AND AT BANKS 13,402 11,896 7,676 (12,600) CASH ON HAND AND AT BANKS AS AT JANUARY 1 134,253 81,914 10,347 15,040 CASH ON HAND AND AT BANKS AS AT SEPTEMBER 30 147,655 93,810 18,023 2,440 ADDITIONAL DISCLOSURE ITEMS TO CASH FLOWS STATEMENTS : CASH ON HAND AND AT BANKS PAID DURING THE PERIODS FOR : Interest expenses 106 93 - - Income tax 632,612 395,185 239,833 116,238 Purchase of investments in subsidiaries (BEC-TERO Entertainment Company Limited) Cash on hand - 5,985 - - Share subscription receivable - 4,000 - - - 9,985 - - Goodwill - 2,125 - - Minority interest - (3,994) - - Investment in purchasing subsidiary - 8,116 - - Cash on hand of subsidiary as at April 1, 1998 - (5,985) - - Cash paid in purchasing - 2,131 - - NON - CASH FLOWS ITEM COMPRISES Dividends receivable - - 199,999 - Notes to the interim financial statements form an integral part of these statements. UNAUDITED REVIEWED BEC WORLD PUBLIC COMPANY LIMITED AND SUBSIDIARIES NOTES TO THE INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 1999 AND 1998 1. BASIS OF PREPARATION OF CONSOLIDATED INTERIM FINANCIAL STATEMENTS 1.1 The consolidated interim financial statements included the interim financial statements of BEC World Public Company Limited and its subsidiaries as follows: % HOLDING 1999 1998 SUBSIDIARIES DIRECTLY HOLDING BY COMPANY 1. THE BANGKOK ENTERTAINMENT CO., LTD. 99.99 99.99 2. RUNGSIROJVANIT CO., LTD. 99.99 99.99 3. NEW WORLD PRODUCTION CO., LTD. 99.99 99.99 4. ARIYAWATANA CO., LTD. 99.99 99.99 5. YOU & I CORPORATION CO., LTD. 99.99 99.99 6. 3 MEDIA CO., LTD. 99.99 99.99 7. BEC STUDIO CO., LTD. 99.99 99.99 8. BEC INTERNATIONAL DISTRIBUTION CO., LTD. 99.99 99.99 9. BEC NEWS BUREAU CO., LTD. 99.99 99.99 10. BANGKOK TELEVISION CO., LTD. (FORMER NAME : BANGKOK CABLE TELEVISION SYSTEM CO., LTD.) 99.99 99.99 11. BANGKOK SATELLITE & TELECOMMUNICATION CO., LTD. 99.99 99.99 12. SATELLITE BROADCASTING SYSTEM CO., LTD. 99.99 99.99 13. SATELLITE TV BROADCASTING CO., LTD. 99.99 99.99 14. BEC - TERO ENTERTAINMENT CO., LTD. 59.99 59.99 SUBSIDIARY HOLDING BY BEC INTERNATIONAL DISTRIBUTION CO., LTD. 1. TVB 3 NETWORK CO., LTD. 59.99 59.99 SUBSIDIARY HOLDING BY BEC-TERO ENTERTAINMENT CO., LTD. 1. BEC - TERO (YANGON) COMPANY LIMITED 99.80 - - 2 - 1.2 Inter-company balances and transactions have been eliminated in the consolidated interim financial statements. 1.3 The difference between book value of subsidiaries and cost of investments was shown as goodwill. 2. SIGNIFICANT ACCOUNTING POLICIES 2.1 Revenues and expenses recognition Revenues and expenses are recorded on an accrual basis. 2.2 Allowance for doubtful accounts The Company provides allowance for doubtful accounts based on the percentage on aging of the outstanding receivables, of which the percentage on each group of accounts receivable is different. 2.3 Inventories Inventories for sale are stated at cost or net realizable value, whichever is the lower. Cost is calculated by the weighted average method. Programmes which are not on the air are stated at cost and will be treated as cost of sale after transmission. 2.4 Investments in subsidiary, associate and other companies Investments in subsidiaries and associate are stated by equity method and investments in other companies are stated at cost. 2.5 Investments in land Investments in land are stated at cost. 2.6 Equipments Equipments are stated at cost. Depreciation is calculated by the straight-line method based on the estimated useful lives of assets in 5-10 years. 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. -3- 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 proportion 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 and according to the period as specified in the agreement. 2.10 Goodwill Goodwill is amortized by the straight-line method in 5 years and in the accounting period ended September 30, 1999, the deferred goodwill in investment in associate was totally amortized to expenses by showing under loss on impaired assets. 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 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 end of the period. - Shareholders' equity and depreciation were translated by the exchange rates in effect at that date. - Revenues and expenses were translated by the average of exchange rates of the period. 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 September 30, 1999 and 1998 as follows : 3.1 Trade accounts receivable which become default can be classified according to the aging as follows: (THOUSAND BAHT) AGING THE GROUP THE COMPANY ONLY 1999 1998 1999 1998 Over 3 to 6 months 3,706 3,017 - - Over 6 to 12 months 6,798 4,267 - - Over 12 months 26,948 19,860 764 824 Total 37,452 27,144 764 824 Allowance for doubtful accounts 32,721 31,172 892 1,101 -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 5.75-12.25 10.00-12.25 2. YOU & I CORPORATION CO., LTD. - - 214,978 116,891 5.25-15.25 10.00-15.25 3. 3 MEDIA CO., LTD. - - 5,000 9,359 6.75 10.00-12.25 4. BEC INTERNATIONAL DISTRIBUTION CO., LTD. - - 1,668 1,398 5.75-12.25 10.00-12.25 5. BANGKOK TELEVISION CO., LTD. (FORMER NAME : BANGKOK CABLE TELEVISION SYSTEMS CO., LTD.) - - 60,107 77,017 5.75-12.25 9.25-12.25 6. SATELLITE BROADCASTING SYSTEM CO., LTD. - - 100 100 5.75 11.50 -6- (THOUSAND BAHT) THE GROUP THE COMPANY INTEREST RATE ( % ) 1999 1998 1999 1998 1999 1998 7. BEC-TERO ENTERTAINMENT CO., LTD. - - 44,750 10,500 5.50-6.75 9.25-15.25 TOTAL SHORT-TERM LOANS TO SUBSIDIARIES - - 1,126,603 1,015,265 -RELATED PARTIES 1. INFO BIZ CO., LTD. 31,466 27,421 31,466 27,421 8.25-14.75 12.50-14.75 2. INFO PACIFIC CORPORATION LTD. 23,012 20,054 23,012 20,054 8.25-14.75 12.50-14.75 TOTAL SHORT-TERM LOANS TO RELATED PARTIES 54,478 47,475 54,478 47,475 TOTAL 54,478 47,475 1,181,081 1,062,740 LOANS FROM SUBSIDIARY COMPANY -RELATED COMPANY 1. INFO PACIFIC CORPORATION LTD. - 6,000 - - - 16.25 -OTHER COMPANY 1. FIVE STAR PRODUCTION CO., LTD. 4,000 - - - 10.00 - TOTAL LOANS FROM RELATED AND OTHER COMPANY 4,000 6,000 - - TOTAL 58,478 53,475 1,181,081 1,062,740 5. INVESTMENTS IN SUBSIDIARIES AND ASSOCIATE AND INVESTMENTS DEFICIENCY (THOUSAND BAHT) % HOLDING COST METHOD EQUITY METHOD (more)