SET Announcements

Increase (decrease) in allowance for doubtful debts 4,058 (8,380) (701) (1,282) (Decrease) increase in allowance for diminution in value of inventories (5) 901 - - Unrealized gain on investments in open-end fund (50,706) - (13,954) - Realized gain on disposal of investments in open-end fund (28,276) - (6,158) - Dividend income (25,600) - (4,609) - Loss on plays disposal 1,039 - - - (Gain) loss on assets disposal (2,942) 1,346 (765) 45 Loss on unused assets 149 17,103 - 99 Loss on exchange rate 7,083 8,032 1,307 4,041 Company's portion in net income of subsidiaries - - (896,539) (551,340) Company's portion in net (income) loss of associate (4,511) 12,577 (4,511) 12,577 Loss from impairment - 31,780 - 31,780 Loss of minority interest (3,127) (2,473) - - (INCREASE) DECREASE IN OPERATING ASSETS Trade accounts and notes receivable (1,903) (28,823) 15,647 (2,088) Inventories (53) 23 - - Interest receivable 13,941 36,004 23,254 63,599 Other current assets (33,214) (70,410) (3,457) 2,759 Deposit on pictures copyright charges 13,525 (11,060) 16,158 (18,020) Other assets 4,824 2,185 (2,072) 405 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 CONSOLIDATED THE COMPANY ONLY 2000 1999 2000 1999 (DECREASE) INCREASE IN OPERATING LIABILITIES Accounts payable (9,343) (56,198) (1,846) (81,660) Income tax payable (265,729) (262,219) (102,579) (133,118) Other current liabilities 32,186 (41,090) (215) (765) ADJUSTMENT FROM THE TRANSLATION OF SUBSIDIARY'S FINANCIAL STATEMENTS (1,095) 202 - - NET CASH PROVIDED FROM OPERATING ACTIVITIES 1,853,521 1,034,601 492,287 272,062 CASH FLOWS FROM INVESTING ACTIVITIES (Increase) decrease in deposits with financial institutions (9,984) 746,258 - 152,136 Decrease in fixed deposit with banks 1,824,188 281,976 273,232 1,192,161 Increase in investments in subsidiaries - - (63,998) - Increase in investments in open-end fund (3,368,603) - (629,191) - Proceeds from disposal of investments in open-end fund 1,741,161 - 336,947 - Proceeds from dividend 25,600 - 879,597 - (Increase) decrease in short-term loans to related parties and other companies (13,506) (11,003) 320,519 (90,483) Increase in fixed deposit with banks (13,057) - - - Decrease in deposits with fanancial institution 26,225 - 8,178 - Purchase of equipments (47,197) (116,249) (3,711) (4,022) Proceeds from equipment disposal 11,416 4,436 1,697 670 Increase in right to use property (11,457) (27,917) - - Increase in pictures rental, picture products, plays and copyright charges (835,435) (602,241) (294,546) (214,848) Proceeds from plays disposal 29,695 - 29,291 - Increase in minority interest 4,002 - - - Dividend income of minority interest (12) - - - NET CASH (USED IN) PROVIDED FROM INVESTING ACTIVITIES (636,964) 275,260 858,015 1,035,614 CASH FLOWS FROM FINANCING ACTIVITIES (Decrease) increase in bank overdrafts and loans from financial institutions (186) 1,356 - - (Decrease) increase in short-term loans from ralated parties (1,908) - 63,998 - Increase in advance from directors 7,314 2,358 - - Repayment for long-term leases (143) (173) - Dividends payment (1,400,000) (1,300,000) (1,400,000) (1,300,000) NET CASH USED IN FINANCING ACTIVITIES (1,394,923) (1,296,459) (1,336,002) (1,300,000) 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 CONSOLIDATED THE COMPANY ONLY 2000 1999 2000 1999 NET (DECREASE) INCREASE IN CASH ON HAND AND AT BANKS (178,366) 13,402 14,300 7,676 CASH ON HAND AND AT BANKS AS AT JANUARY 1, 377,602 134,253 18,284 10,347 CASH ON HAND AND AT BANKS AS AT SEPTEMBER 30, 199,236 147,655 32,584 18,023 ADDITIONAL DISCLOSURE ITEMS TO CASH FLOWS STATEMENTS : CASH ON HAND AND AT BANKS PAID DURING THE PERIODS FOR : Interest expenses 351 106 - - Income tax expenses 744,503 632,612 173,368 239,833 NON - CASH FLOWS ITEM COMPRISES Dividends receivable - - 199,999 199,999 Notes to the interim financial statements form an integral part of these statements. BEC WORLD PUBLIC COMPANY LIMITED AND SUBSIDIARIES NOTES TO THE INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2000 AND 1999 1. TYPE OF BUSINESS 1.1 General information Legal status A juristic person established under Thai law and listed in the Stock Exchange of Thailand. Company location 622 Emporium Tower, 17/1-8 Floor, Sukhumvit Road, Klongtan District, Khet Klongtoey, Bangkok 10110, Thailand. (The Company moved from the old location during 1999.) Type of business (1) Providing, producing TV programmes and sell air time. (2) Holding shares in subsidiaries and associate which jointly operate business as stated in the Notes to the financial statements No. 7. Number of employees as at September 30, 2000 (1) Including the subsidiaries 1,557 persons and December 31, 1999. and 1,438 persons, respectively. (2) The Company only 46 persons and 35 persons, respectively. 1.2 A subsidiary has made an agreement for joint operation of color TV transmission with the Mass Communication Organization of Thailand dated April 28, 1978 and amended the first time on September 13, 1982, the second time on July 16, 1987 and the third time on May 2, 1989. The subsidiary is granted the right for joint operation of Channel 3 color Thai TV station's transmission until March 25, 2020. All property created or procured for the operation under this agreement shall be transferred to the Mass Communication Organization of Thailand on the date the subsidiary creates or procures. The subsidiary has the right to use such property. Under the above agreement, the subsidiary has to pay annual compensation to the Mass Communication Organization of Thailand as specified in the agreement. -2- 1.3 A subsidiary has made an agreement to lease air time for programme and advertisement with the Mass Communication Organization of Thailand dated January 25, 1990 and amended on September 22, 1994. The subsidiary is granted the right to operate programme and advertise through an MCOT FM radio station, at 105.5 MH frequency in Bangkok until January 31, 2020. To be consistent with the term of the third amended agreement for joint operation of color TV transmission , it is agreed that if the agreement for joint operation of color TV transmission is terminated before its terms for whatever reason, this agreement shall be deemed terminated. Under the above agreement, the subsidiary has to pay the monthly air time rental and other expenses to the Mass Communication Organization of Thailand as specified in the agreement. 2. BASIS OF PREPARATION OF CONSOLIDATED INTERIM FINANCIAL STATEMENTS 2.1 The consolidated interim financial statements included the interim financial statements of BEC World Public Company Limited and its subsidiaries as follows: % HOLDING Established September December in 30, 2000 31, 1999 SUBSIDIARIES DIRECTLY HOLDING BY COMPANY 1. THE BANGKOK ENTERTAINMENT CO., LTD. 99.99 99.99 THAILAND 2. RUNGSIROJVANIT CO., LTD. 99.99 99.99 THAILAND 3. NEW WORLD PRODUCTION CO., LTD. 99.99 99.99 THAILAND 4. ARIYAWATANA CO., LTD. 99.99 99.99 THAILAND 5. YOU & I CORPORATION CO., LTD. 99.99 99.99 THAILAND 6. BEC ASSET CO., LTD. (FORMER NAME : 3 MEDIA CO., LTD.) 99.99 99.99 THAILAND 7. BEC STUDIO CO., LTD. 99.99 99.99 THAILAND 8. BEC INTERNATIONAL DISTRIBUTION CO., LTD. 99.99 99.99 THAILAND 9. BEC NEWS BUREAU CO., LTD. 99.99 99.99 THAILAND 10. BANGKOK TELEVISION CO., LTD. (FORMER NAME : BANGKOK CABLE TELEVISION SYSTEMS CO., LTD.) 99.99 99.99 THAILAND -3- % HOLDING Established September December in 30, 2000 31, 1999 11. BANGKOK SATELLITE & TELECOMMUNICATION CO., LTD. 99.99 99.99 THAILAND 12. BEC IT SOLUTION CO., LTD. (FORMER NAME : SATELLITE BROADCASTING SYSTEM CO., LTD.) 99.99 99.99 THAILAND 13. SATELLITE TV BROADCASTING CO., LTD. 99.99 99.99 THAILAND 14. BEC - TERO ENTERTAINMENT CO., LTD. 59.99 59.99 THAILAND 15. BECI CORPORATION CO., LTD. 99.99 - THAILAND SUBSIDIARY HOLDING BY BEC INTERNATIONAL DISTRIBUTION CO., LTD. 1. TVB 3 NETWORK CO., LTD. 59.99 59.99 THAILAND SUBSIDIARIES HOLDING BY BEC-TERO ENTERTAINMENT CO., LTD. 1. BEC - TERO (YANGON) CO., LTD. 99.80 99.80 MYANMAR 2. THAI TICKET MASTER.COM CO., LTD. 59.99 - THAILAND 2.2 Inter-company balances and transactions have been eliminated in the consolidated interim financial statements. 2.3 The difference between book value of subsidiaries and cost of investments was shown as goodwill. 3. SIGNIFICANT ACCOUNTING POLICIES 3.1 Revenues and expenses recognition Revenues and expenses are recorded on an accrual basis. 3.2 Investments in Open-end Fund Investments in Open-end Fund are treated as trading securities, stated at fair value. Cost of investments sold during the period are calculated by weighted average method. -4- 3.3 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. 3.4 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. 3.5 Investments in subsidiary, associate and other companies Investments in subsidiaries and associate are stated by equity method and at cost in other companies. 3.6 Investments in land Investments in land are stated at cost. 3.7 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 and already deducted provision for impairment of assets. 3.8 Deferred right to use property Deferred right to use property is amortized to expenses by the remaining periods of concession or by the straight-line method based on the estimated useful lives of assets in 5-20 years. 3.9 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 obtained for transmission. -5- Picture products are amortized to cost by the ratio of revenues received based on the estimated total revenues. Plays charges - Plays charges before year 2000 are amortized by the straight-line method in 5 years after acquisition. - Plays charges since year 2000 onwards are amortized at 20% per annum after acquisition and will be amortized until the balance is equal to 20 % of initial cost when the whole story is transmitted for the first time. After that, the straight-line method will be applied to amortize within 5 years. Copyright charges are amortized by the straight-line method naccording to the period specified in the agreement. 3.10 Deferred expenses Other deferred expenses are amortized by the straight-line method within the period as specified in the agreement. 3.11 Goodwill Goodwill is amortized by the straight-line method in 5 years and in the accounting period ended December 31, 1999, the deferred goodwill of investment in associate was totally amortized to expenses by showing under loss on impaired assets. 3.12 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. 3.13 Foreign currency transactions Foreign currency transactions are recorded in Baht at the rate ruling at the date of transactions. 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. -6- 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. 4. INVESTMENTS IN OPEN-END FUND consist of the following : (THOUSAND BAHT) CONSOLIDATED THE COMPANY ONLY September 30, December 31, September 30, December 31, 2000 1999 2000 1999 Investments in Open-end Fund - Debt instruments 2,505,718 850,000 626,402 328,000 Unrealized gain on investments in Open-end Fund 51,839 1,133 14,562 608 Net Investments in Open-end Fund 2,557,557 851,133 640,964 328,608 For the three-month and nine-month periods ended September 30,2000, there are unrealized gain from the difference between fair value and cost value as recorded in the consolidated financial statements amount of Baht 18.20 million and Baht 50.71 million, respectively and in the financial statements of the Company only amount of Baht 3.29 million and Baht 13.95 million, respectively. Such gains were presented in the statements of income. -7- 5. QUALITY OF ASSETS The Company has invested and carried on business with the companies which become default as at September 30, 2000 and December 31, 1999, as follows : 5.1 Trade accounts receivable which become default can be classified according to the aging as follows: (THOUSAND BAHT) AGING CONSOLIDATED THE COMPANY ONLY September 30, December 31, September 30, December 31, 2000 1999 2000 1999 Over 3 to 6 months 11,139 17,185 - - Over 6 to 12 months 10,816 12,388 - - Over 12 months 38,122 29,348 824 764 Total 60,077 58,921 824 764 Allowance for doubtful accounts 46,764 42,666 1,566 2,267 5.2 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. The details of deposits are as follows: (MILLION BAHT) CONSOLIDATED THE COMPANY ONLY (more)