SET Announcements

pictures ASSOCIATE 1. CVD ENTERTAINMENT PUBLIC Producing video tape Common 360,000,000 360,000,000 - 3,240,000 COMPANY LIMITED and lazer disc, distri- shareholders/ buting and renting directors video tape * NOT YET OPERATING 9. INVESTMENTS IN LAND Certain subsidiary invested in land with structure but will not utilize such structure, due to the situation of uncovered repairing cost which may arise. Therefore, the total acquisition was recorded to cost of land. This subsidiary is considering for making use on such land. So, it is shown under investments in land. -13- 10. EQUIPMENTS consist of the following : (BAHT) THE GROUP PARTICULAR 1998 Increase Disposal Unused 1999 Office furniture and appliances 239,471,463 130,377,721 2,662,656 82,705,023 284,481,505 Audio equipments 14,242,979 11,560,365 - - 25,803,344 Assets for leasing and selling air time for advertising 13,909,875 - 200,000 967,148 12,742,727 Building improvement - 9,170,000 - - 9,170,000 Motor vehicles 176,777,097 9,528,299 11,444,648 - 174,860,748 Tools and equipments 4,660,078 - - - 4,660,078 Office furniture and appliance under installation - 1,686,073 - - 1,686,073 Total 449,061,492 162,322,458 14,307,304 83,672,171 513,404,475 Less Accumulated depreciation (289,754,333) (63,004,375) (5,836,464) (66,321,068) (280,601,176) Allowance for impaired assets - (2,291,712) - - (2,291,712) Equipments-net 159,307,159 230,511,587 Depreciation for the year 64,710,275 63,004,375 Loss on impaired assets amount of Baht 2,291,712, was presented in the statements of income. (BAHT) THE COMPANY ONLY PARTICULAR 1998 Increase Disposal Unused 1999 Office furniture and appliances 24,979,380 34,057,628 - 2,013,999 57,023,009 Motor vehicles 34,632,753 811,684 1,867,048 - 33,577,389 Tools and equipments 14,600 - - - 14,600 Total 59,626,733 34,869,312 1,867,048 2,013,999 90,614,998 Less Accumulated depreciation (36,416,022) (8,539,509) (1,151,223) (1,915,364) (41,888,944) Equipments-net 23,210,711 48,726,054 Depreciation for the year 8,334,875 8,539,509 -14- 11. DEFERRED RIGHT TO USE PROPERTY consist of the following : (BAHT) THE GROUP PARTICULAR 1998 Increase Transfer 1999 Building 80,500,885 - - 80,500,885 Building improvement 13,386,710 689,000 - 14,075,710 Color TV and radio transmitter 193,997,805 - - 193,997,805 Color TV and radio equipments 397,723,668 3,717,361 - 401,441,029 TV relay vehicles 11,562,675 - - 11,562,675 Right of network expansion project 1,518,101,042 35,592,054 - 1,553,693,096 Total 2,215,272,785 39,998,415 - 2,255,271,200 Less Accumulated depreciation ( 940,851,453) (131,780,293) - (1,072,631,746) Deferred Right to Use Property - net 1,274,421,332 1,182,639,454 Amortization of right to use property for the year 132,120,037 131,780,293 12. DEFERRED PICTURES RENTAL, PICTURE PRODUCTS, PLAYS AND COPYRIGHT CHARGES consist of the following : (BAHT) THE GROUP THE COMPANY ONLY 1999 1998 1999 1998 Deferred Pictures Rental, Picture Products, Plays and Copyright Charges-net brought forward 1,504,486,004 1,147,755,144 549,249,312 378,816,504 Add Increase during the year 886,246,119 841,696,547 369,649,038 375,201,075 Less Decrease during the year - (184,593) - - Total 2,390,732,123 1,989,267,098 918,898,350 754,017,579 Less Amortization during the year (663,545,029) (484,781,094) (252,220,452) (204,768,267) Deferred Pictures Rental, Picture Product, Plays and Copyright Charges-net carried forward 1,727,187,094 1,504,486,004 666,677,898 549,249,312 -15- 13. LONG-TERM LEASE PAYABLE consists of the following : (BAHT) THE GROUP THE COMPANY ONLY 1999 1998 1999 1998 Long-term lease payable 143,026 370,646 - - Less Current portion of long-term lease payable (143,026) (222,388) - - Long-term lease payable-net - 148,258 - - Portion of long-term lease payable due within one year has been shown under current liabilities. 14. DIVIDENDS PAYMENT AND DIRECTORS' REMUNERATION On March 16, 1999, the Board of Directors' Meeting was held and approved to pay dividends at Baht 6.50 per share to the shareholders of 200 million shares, totalling Baht 1,300 million. On April 29, 1999, the Ordinary General Shareholders' Meeting for 1999 was held and approved to pay such proposed dividends and directors' remuneration amounting to Baht 12 million by fixing the payment date for dividends on May 11, 1999. On February 25, 1998, the Board of Directors' Meeting was held and approved to pay dividends at Baht 6.00 per share to the shareholders of 200 million shares, totalling Baht 1,200 million. On April 29, 1998, the Ordinary General Shareholders' Meeting for 1998 was held and approved to pay such proposed dividends and directors' remuneration amounting to Baht 12 million by fixing the payment date for dividends on May 20, 1998. -16- 15. THE CHANGE OF SUBSIDIARY 'S NAME On July 9, 1999, the Extraordinary Shareholders' Meeting of the subsidiary was held and has a special resolution to confirm the resolution of the Extraordinary Shareholders' Meeting held on June 23, 1999 to change its name from Bangkok Cable Television Systems Co., Ltd. to Bangkok Television Co., Ltd. and the subsidiary company registered the resolution with the Ministry of Commerce on July 9, 1999. 16. TRANSACTIONS WITH RELATED PARTIES The Company and subsidiaries have certain transactions of assets, liabilities, revenues and expenses arose from transactions with the related parties through the common shareholders and/or directors. Such transactions incur in normal business at market price which are comparable to the business transactions with others. The effects of these transactions were reflected in the accompanying financial statements on the bases mutually determined by the Company and subsidiaries and parties concerned. The significant transactions with related parties are as follows : (BAHT) 1999 1998 Trade accounts receivable 20,946,082 7,342,682 Loans extended 54,477,606 47,475,038 Interest receivable 2,536,567 3,952,134 Copyright charges of songs in process - 1,727 Purchase of office equipments 8,268,316 6,060,848 Trade accounts payable 306,354 123,171 Revenues 24,928,440 9,771,142 Interest income 5,587,001 6,878,780 Cost of sales 1,758,683 1,787,425 Expenses 17,595,895 15,531,145 -17- 17. FINANCIAL INFORMATION BY SEGMENT The Company and its subsidiaries operate in one industrial segment, that is the business of entertainment and operate in Thailand and The Union of Myanmar. All revenues, income and assets shown in the financial statements are related to the aforementioned industrial segment and geographical areas. 18. COMMITMENTS AND CONTINGENT LIABILITIES As at December 31, 1999 and 1998, the Company and its subsidiaries have commitments and contingent liabilities as follows: (MILLION BAHT) PARTICULAR THE GROUP THE COMPANY ONLY 1999 1998 1999 1998 Letter of guarantee issued by commercial banks 20.41 19.71 - - Copyright charges of pictures under buying forward contract - Current portion 131.43 68.16 64.55 30.57 - Portion due after one year 19.60 87.04 - 52.52 19. RECLASSIFICATION OF ACCOUNTS Certain accounts in the 1998 financial statements have been reclassified to conform with the presentation of 1999 financial statements.