SET Announcements

September 30, December 31, September 30, December 31, 2000 1999 2000 1999 Promissory notes 271.91 280.09 86.14 94.32 Certificates of deposit 53.00 71.05 - - TOTAL 324.91 351.14 86.14 94.32 -8- 6. SHORT-TERM LOANS TO RELATED PARTIES AND OTHER COMPANIES (THOUSAND BAHT) CONSOLIDATED THE COMPANY ONLY INTEREST RATE ( % ) September December September December September December 30, 2000 31, 1999 30, 2000 31, 1999 30, 2000 31, 1999 LOANS TO -SUBSIDIARIES 1. THE BANGKOK ENTERTAINMENT CO., LTD. - - 400,000 800,000 4.75-5.75 5.75-12.25 2. YOU & I CORPORATION CO., LTD. - - 264,905 257,100 4.75-5.75 5.00-15.25 3. BEC ASSET CO., LTD. (FORMER NAME : 3 MEDIA CO., LTD.) - - 11,337 5,337 5.00 5.00-6.75 4. BEC INTERNATIONAL DISTRIBUTION CO., LTD. - - 1,767 1,683 4.75-5.75 5.00-12.25 5. TVB THREE NETWORK CO., LTD 1,000 - 5.00 - 6. BANGKOK TELEVISION CO., LTD. (FORMER NAME : BANGKOK CABLE TELEVISION SYSTEMS CO., LTD.) - - - 17,591 - 5.75-12.25 7. BEC IT SOLUTION CO., LTD. (FORMER NAME : SATELLITE BROADCASTING SYSTEM) CO., LTD. - - 106 100 4.75-5.75 5.75 8. BEC-TERO ENTERTAINMENT CO., LTD. - - 129,064 51,393 4.75-5.75 5.00-6.75 TOTAL SHORT-TERM LOANS TO SUBSIDIARIES - - 808,179 1,133,204 -RELATED PARTIES 1. INFO BIZ CO., LTD. 34,069 31,466 34,069 31,466 7.25-8.25 8.25-14.75 2. INFO PACIFIC CORPORATION LTD. 24,915 23,012 24,915 23,012 7.25-8.25 8.25-14.75 TOTAL SHORT-TERM LOANS TO RELATED PARTIES 58,984 54,478 58,984 54,478 TOTAL 58,984 54,478 867,163 1,187,682 LOANS FROM SUBSIDIARY COMPANY -OTHER COMPANY 1. FIVE STAR PRODUCTION CO., LTD. 19,000 10,000 - - 10.00 10.00 TOTAL LOANS TO OTHER COMPANY 19,000 10,000 - - TOTAL 77,984 64,478 867,163 1,187,682 -9- 7. INVESTMENTS IN SUBSIDIARIES AND ASSOCIATE AND INVESTMENTS DEFICIENCY (THOUSAND BAHT) % HOLDING COST METHOD EQUITY METHOD September December September December September December 30, 2000 31, 1999 30, 2000 31, 1999 30, 2000 31, 1999 SUBSIDIARIES 1. THE BANGKOK ENTERTAINMENT CO., LTD. 99.99 99.99 299,999 299,999 1,456,064 1,201,604 2. RUNGSIROJVANIT CO., LTD. 99.99 99.99 35,000 35,000 961,458 1,424,627 3. NEW WORLD PRODUCTION CO., LTD. 99.99 99.99 59,999 59,999 1,154,411 1,147,674 4. ARIYAWATANA CO., LTD. 99.99 99.99 42,997 42,997 588,421 625,366 5. YOU & I CORPORATION CO., LTD. 99.99 99.99 34,999 34,999 (176,793) (144,825) 6. BEC ASSET CO., LTD. (FORMER NAME : 3 MEDIA CO., LTD.) 99.99 99.99 30,000 30,000 (6,002) (3,181) 7. BEC STUDIO CO., LTD. 99.99 99.99 5,000 5,000 6,584 6,483 8. BEC INTERNATIONAL DISTRIBUTION CO., LTD. 99.99 99.99 5,000 5,000 (5,416) (3,299) 9. BEC NEWS BUREAU CO., LTD. 99.99 99.99 5,000 5,000 6,582 6,481 10. BANGKOK TELEVISION CO., LTD. (FORMER NAME : BANGKOK CABLE TELEVISION SYSTEMS CO., LTD.) 99.99 99.99 5,000 5,000 101,123 2,519 11. BANGKOK SATELLITE & TELECOMMUNICATION CO., LTD. 99.99 99.99 25,000 25,000 34,157 33,541 12. BEC IT SOLUTION CO., LTD. (FORMER NAME : SATELLITE BROADCASTING SYSTEM CO., LTD. 99.99 99.99 15,000 1,000 15,048 1,149 13. SATELLITE TV BROADCASTING CO., LTD. 99.99 99.99 1,000 1,000 677 696 14. BEC-TERO ENTERTAINMENT CO., LTD. 59.99 59.99 8,116 8,116 (9,413) (7,710) 15. BECI CORPORATION CO., LTD. 99.99 - 49,998 - 49,774 - TOTAL INVESTMENTS IN SUBSIDIARIES 622,108 558,110 4,374,299 4,450,140 TOTAL INVESTMENTS DEFICIENCY - - (197,624) (159,015) ASSOCIATE 1. CVD ENTERTAINMENT PUBLIC COMPANY LIMITED 20.00 20.00 328,847 328,847 197,600 193,089 TOTAL INVESTMENTS IN SUBSIDIARIES AND ASSOCIATE 950,955 886,957 4,571,899 4,643,229 TOTAL INVESTMENTS DEFICIENCY - - (197,624) (159,015) Due to some subsidiary companies have capital deficiency on September 30, 2000 and December 31, 1999, therefore, the amount of investments in subsidiaries by equity method was presented in liabilities under "investments deficiency". -10- The financial statements of CVD Entertainment Public Company Limited as at September 30, 2000 and December 31, 1999 are based on the report of other auditor of such company. The Company's portion of amount recorded in the consolidated financial statements and the Company only is immaterial. The Company amortized deferred goodwill in the investments in associate as at September 30, 2000, amount of Baht 31.78 million from the total amount of investment. Due to it is expected that there will be no economic benefit in the future, therefore, it was shown in the expenses under "Loss on impaired assets". The Company invested in stocks of CVD Entertainment Public Company Limited which is listed in the Stock Exchange of Thailand amount of 7.20 million shares. The market value as at September 30, 2000 and December 31, 1999 are equal to Baht 69.12 million and Baht 106.20 million, respectively. The financial statements of BEC TERO (YANGON) COMPANY LIMITED which is located in the Union of Myanmar holding by subsidiary and is partly included in the consolidated financial statements ended September 30, 2000, and December 31, 1999, based on the information of Myanmar's auditor. For the financial statements ended September 30, 1999, based on the data prepared by the management which have not been reviewed by the auditors. The amount of assets, liabilities and equity are immaterial to the consolidated financial statements and the Company's financial statements. (THOUSAND BAHT) PAID-UP CAPITAL DIVIDENDS TYPE OF BUSINESS RELATIONSHIP September December September September 30, 2000 31, 1999 30, 2000 30, 1999 SUBSIDIARIES 1. THE BANGKOK ENTERTAINMENT Broadcasting Thai Common 300,000 300,000 199,999 199,999 CO., LTD. TV Channel 3 and shareholders/ radio directors 2. RUNGSIROJVANIT CO., LTD. Sourcing and Common 5,000 5,000 689,990 - producing shareholders/ TV Programs, and directors sell air time 3. NEW WORLD PRODUCTION Sourcing and Common 5,000 5,000 184,998 - CO., LTD producing shareholders/ TV Programs, and directors sell air time 4. ARIYAWATANA CO., LTD. Sourcing and Common 1,000 1,000 - - producing, and shareholders/ TV Programs, and directors sell air time -11- (THOUSAND BAHT) PAID-UP CAPITAL DIVIDENDS TYPE OF BUSINESS RELATIONSHIP September December September September 30, 2000 31, 1999 30, 2000 30, 1999 5. YOU & I CORPORATION Producing radio Common 35,000 35,000 - - CO., LTD. Programs, operating shareholders/ radio stations and directors producing pictures 6. BEC ASSET CO., LTD (FORMER Owner and assets for Common 30,000 30,000 - - NAME : 3 MEDIA CO., LTD.) rent shareholders/ directors 7. BEC STUDIO CO., LTD. ( * ) Producing programs Common 5,000 5,000 - - and studio services shareholders/ directors 8. BEC INTERNATIONAL Sourcing and producing Common 5,000 5,000 - - DISTRIBUTION CO., LTD. TV Programs shareholders/ directors 9. BEC NEWS BUREAU CO., LTD. (*) Producing news Common 5,000 5,000 - - programs shareholders/ directors 10. BANGKOK TELEVISION CO., LTD. Sourcing and Common 5,000 5,000 - - (FORMER NAME : BANGKOK producing TV program shareholders/ CABLE TELEVISION and sell air time directors SYSTEMS CO., LTD.) 11. BANGKOK SATELLITE & Satellite Uplink- Common 25,000 25,000 - - TELECOMMUNICATION Downlink services shareholders/ CO., LTD. ( * ) directors 12. BEC IT SOLUTION CO., LTD. Information technology Common 15,000 1,000 - - (FORMER NAME : services shareholders/ SATELLITE BROADCASTING directors SYSTEM CO., LTD.) ( * ) 13. SATELLITE TV BROADCASTING Satellite Uplink- Common 1,000 1,000 - - CO., LTD. ( * ) Downlink services shareholders/ directors 14. BEC-TERO ENTERTAINMENT Sourcing and producing Common 10,000 10,000 - - CO., LTD. TV programs and sell air, Shareholders/ time for TV advertising directors producing and promoting songs for concert, produc- ing pictures and plays. 15. BECI CORPORATION CO., LTD. ( * ) Invest in internet Common 50,000 - - - business shareholders/ directors ASSOCIATE 1. CVD ENTERTAINMENT PUBLIC Producing video tape Common 360,000 360,000 - - COMPANY LIMITED and lazer disc, shareholders/ distributing and directors renting video tape * NOT YET OPERATING -12- 8. SHORT-TERM LOANS FROM SUBSIDIARIES AND OTHER COMPANIES (THOUSAND BAHT) CONSOLIDATED THE COMPANY ONLY INTEREST RATE (%) September December September December September December 30, 2000 31, 1999 30, 2000 31, 1999 30, 2000 31, 1999 THE COMPANY LOANS FROM 1. BEC IT SOLUTION CO., LTD. - - 14,000 - 4.75 - 2. BECI CORPORATION CO., LTD. - - 49,998 - 4.75 - TOTAL LOANS FROM SUBSIDIARIES - - 63,998 - - SUBSIDIARIES LOANS FROM - OTHER COMPANY 1. PDD HOLDINGS CO., LTD. - 1,908 - - - 5.00 TOTAL LOANS FROM SUBSIDIARIES 1,908 - - TOTAL 1,908 63,998 - 9. DIVIDENDS PAYMENT AND DIRECTORS' REMUNERATION On March 13, 2000, the Board of Directors' Meeting was held and approved to pay dividends at Baht 7.00 per share to the shareholders of 200 million shares, totalling Baht 1,400 million. On April 27, 2000, the Ordinary General Shareholders' Meeting for 2000 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 18, 2000. 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. -13- 10. TRANSACTIONS WITH RELATED PARTIES The Company has some transactions with the related parties which are related through shareholding or having common shareholders and/or directors. The effects of these transactions were reflected in the accompanying financial statements on the conditions mutually determined by the Company and parties concerned and in normal business. The significant transactions with related parties are as follows: (THOUSAND BAHT) TRANSACTIONS IN CONSOLIDATED BALANCE SHEETS September 30, 2000 December 31, 1999 Trade accounts receivable 18,503 20,946 Loans extended 58,984 54,478 Inventories 116 - Interest receivable 1,336 2,537 Other current assets 472 - Purchase of office equipments 10,967 8,268 Trade accounts payable 328 306 (THOUSAND BAHT) TRANSACTIONS IN CONSOLIDATED STATEMENTS OF September 30, 2000 September 30, 1999 INCOME (FOR THE NINE-MONTH PERIODS) Revenues 31,355 5,214 Interest income 3,306 4,454 Cost of sales 796 457 Expenses 10,600 10,631 11. FINANCIAL INFORMATION BY SEGMENT The Company and its subsidiaries are engaged in the business of amusement and entertainment and in the geographical areas of Thailand and Myanmar. Therefore, all revenues, income and assets shown in the financial statements are related to the aforesaid industrial segment and geographical areas. -14- 12. COMMITMENTS AND CONTINGENT LIABILITIES As at September 30, 2000 and December 31, 1999, the Company and its subsidiaries have commitments and contingent liabilities as follows: (MILLION BAHT) PARTICULAR CONSOLIDATED THE COMPANY ONLY September December September December 30, 2000 31, 1999 30, 2000 31, 1999 Letter of guarantee issued by commercial banks 17.38 20.41 - - Copyright charges of pictures under forward purchase contract - Current portion 33.49 131.43 17.21 64.55 - Portion due after one year 7.21 19.60 5.00 - 13. RECLASSIFICATION OF ACCOUNTS Certain accounts in the 1999 financial statements have been reclassified to conform with the presentation of 2000 financial statements. 14. EVENT AFTER FINANCIAL STATEMENTS On October 9, 2000, the Company invested in BEC Multimedia Co., Ltd. which carries on business of multimedia in the proportion of 99.99% on the issued and paid-up share capital. Such company has authorized share capital of Baht 200 million (divided into 20,000,000 shares of Baht 10 par value) with 25% was paid.