(Amounts in Thousands of Baht) Consolidated Company 1999 1998 1999 1998 Short-term loans and advances to related parties Subsidiary Companies Polipharm Co., Ltd. - - 20,422 45,470 Siam Snack Co., Ltd. - - 40,744 63,689 Cosma Ltd. - - 406 275 Rubia Industries Ltd. - - 84,128 73,096 Thai Sancella Co., Ltd. - - 4,476 4,558 Thai-Scandic Steel Co., Ltd. - - 5,447 189,824 Tropicwood Co., Ltd. (net of allowance for doubtful account Baht 9 million) - - 20,697 28,402 Thai Glass Industries PCL. - - 453,073 67,280 Cellox Paper Co., Ltd. - - 3,977 20,064 Agri-Systems (Thailand) Co., Ltd. - - 32,298 28,389 Thai Klinipro Co., Ltd. - - - 50,866 Berli Prospack Co., Ltd. - - 18,455 40,933 Associated Companies BJT Water Co., Ltd. 3,905 3,816 3,905 3,816 Vina Glass Industries Limited 766 540,246 - - Beston Food (Shanghai) Co., Ltd. 6,953 - 6,953 - Pacific Leisure (Thailand) Ltd. Group 52 295 52 295 Other Companies Pathum Thani Water Co., Ltd. 105,485 38,930 105,485 38,930 Prospack Co., Ltd. Group 83 335 - - Total 117,244 583,622 800,518 655,887 Short-term loans and advances from related parties Subsidiary Company Montana Co., Ltd. - - 5,034 4,085 Associated Company Bell International Surveyors & Adjusters Ltd. - 8,457 - 8,457 Other Companies J.N.P.A. Co., Ltd. 17,241 - 17,241 - Reime Jarlso AS - 9,029 - - O-I Pacific (Machinery and Distribution) Ltd. - 10,768 - - Total 17,241 28,254 22,275 12,542 NOTE 6 - ACCOUNTS RECEIVABLE Accounts receivable as at March 31, 1999 classified by age can be summarized as follows:: (Amounts in Thousands of Baht) Consolidated Company Less than 6 months 3,050,931 1,526,430 Over 6 months to 12 months 61,771 51,888 Over 12 months 166,910 137,505 Total 3,279,612 1,715,823 At March 31, 1999 the Company provided an allowance for doubtful accounts in the amount of Baht 176.54 million for the consolidated financial statements and Baht 145.55 million for the Company's financial statements. NOTE 7 - INVESTMENTS IN RELATED PARTIES AND OTHER COMPANIES Investments in related parties and other companies as at March 31, consisted of the following: (Amounts in Thousands of Baht) Consolidated Company Cost method Equity method Type of Business Group Shareholding 1999 1998 1999 1998 1999 1998 Subsidiary Companies Berli Jucker (Myanmar) Ltd. Import & export 100.00% - - 2,076 2,076 - - Montana Co., Ltd. Sales of cosmetics 100.00% - - 500 500 3,801 3,769 and machinery Polipharm Co., Ltd. Manufacture of 100.00% - - 12,950 12,950 71,916 66,946 pharmaceuticals - - Siam Snack Co., Ltd Manufacture of 100.00% - - 170,042 170,042 199,280 196,894 snack foods Rubia Investments Ltd. Investment vehicle 100.00% - - 380,000 - 375,885 - in 1999 Cosma Ltd. Dormant 100.00% - - 100 100 199 196 (A subsidiary - - holds 98.00%) Rubia Industries Ltd. Manufacture of 99.70% - - 19,256 19,256 242,128 179,051 soap, cosmetics & confectionery Tropicwood Co., Ltd. Dormant 98.30% - - 4,304 11,004 1,614 4,937 Thai Glass Industries PCL. Manufacture of 97.92% in 1999 - - 3,004,755 1,683,382 3,054,303 2,072,162 glass containers and 66.13% in 1998 Thai Flourspar & Minerals Co., Manufacture of 95.00% - - 1,900 1,900 19,615 21,262 Ltd. calcium carbonate Cellox Paper Co., Ltd. Manufacture of 75.83% in 1999 - - 508,724 483,709 682,941 596,271 paper products and 72.49% in 1998 Thai-Scandic Steel Co., Ltd. Manufacture of 97.03% of ordinary - - 200,000 130,000 189,941 130,000 galvanized steel shares in 1999 and structures 71.04% in 1998 (A subsidiary holds 56.14% in 1999 and 75.00% in 1998) 100.00% of preference shares in 1998 (Amounts in Thousands of Baht) Consolidated Company Cost method Equity method Type of Business Group Shareholding 1999 1998 1999 1998 1999 1998 Thai Klinipro Co., Ltd. Manufacture of 51.00% - - 51,000 20,400 82,501 40,166 surgical gowns Berli Prospack Co., Ltd. Manufacture of 50.00% - - 81,000 98,000 72,406 78,669 plastic containers Associated Companies BJC Marine Resources Dormant 50.00% 15,606 16,556 16,377 24,377 15,606 16,556 Development Co., Ltd. Thai-Swiss Metal Works Co., Ltd. Dormant 50.00% - - - - - - ADAT Sales (Thailand) Ltd. Travel 48.32% 2,289 3,285 - - - - Thai-Pacific Foods Ltd. Dormant 47.33% - - - - - - Bell International Surveyors Surveying 41.00% in 1998 - 7,159 - 1,230 - 7,159 & Adjusters Ltd. BJT Water Co., Ltd. Consultancy and 35.00% 19,170 18,101 7,000 3,500 19,170 18,101 management service for water and waste water systems Beston Food (Shanghai) Co., Ltd. Manufacture of 34.00% 27,972 37,336 31,336 37,336 27,972 37,336 snack foods O-I Pacific (Machinery and Sale of machinery 29.38% in 1999 3,558 - - - - - Distribution) Ltd. for glass container and 19.84% in 1998 factories Pacific Leisure (Thailand) Ltd. Travel 23.67% 2,562 2,686 - - - - Siemens Limited Electrical 25.50% in 1998 - 80,000 - 80,000 80,000 80,000 engineering, telecommunications and mass transportation Total Investments in Related Parties 71,157 165,123 4,491,320 2,779,762 5,059,278 3,549.475 (Amounts in Thousands of Baht) Consolidated Company Cost method Equity method Type of Business Group Shareholding 1999 1998 1999 1998 1999 1998 Other Companies Siam Industrial Products Ltd. Import 20.00% 50 50 - - - - (25.00% paid up) J.N.P.A. Co., Ltd. Property holding 17.24% 53,779 53,779 53,779 53,779 53,779 53,779 Pathum Thani Operations Co., Ltd. Rendering services for water treatment 17.00% in 1999 850 - 850 - 850 - Pathum Thani Water Co., Ltd. Clean water supply 15.00% 145,500 145,500 145,500 145,500 145,500 145,500 Siam Cement Myanmar Trading Ltd Cement distributor 15.00% 837 837 837 837 837 837 Thaiviet Invexim Co., Ltd. Import & export 1.00% 100 100 100 100 100 100 Total Investments in Other Companies 201,116 200,266 201,066 200,216 201,066 200,216 At March 31, 1999 and 1998 the Company had an excess loss over book value of investments in Agri- Systems (Thailand) Co., Ltd. and Berli Jucker (Myanmar) Ltd. totalling Baht 35.32 million and Baht 31.61 million respectively, which is shown as other liabilities in the Company's financial statements. The recording of investments in subsidiary and associated companies by using the equity basis in the financial statements for the three-month periods ended March 31, 1999 and 1998 is based on financial information obtained from reviewed financial statements and from management, which has not been audited or reviewed by the auditors in accordance with standards established by The Institute of Certified Accountants and Auditors of Thailand. NOTE 8 - SHARE CAPITAL A special resolution was passed by the extraordinary general meeting of shareholders held on June 5, 1998 authorizing an increase in the authorized share capital of the Company by Baht 1,010,625,000 by issuing 101,062,500 new ordinary shares with a par value of Baht 10 each, thus increasing the authorized share capital from Baht 577,500,000 to Baht 1,588,125,000. The new ordinary shares were offered on a rights basis to all existing shareholders at a price per share of Baht 40 in the proportion of 7 new ordinary shares for every 4 existing shares held. On June 26, 1998, all rights had been fully subscribed and the Company received Baht 4,028.4 million in subscription monies (net of expenses). The Company registered the increase in share capital on July 7, 1998. NOTE 9 - OTHER FINANCING INCOME In the normal course of business the Company undertakes financial transactions to minimise the cost of its foreign exchange hedging activities. For the three-month period ended March 31, 1999 these activities produced a net receipt which, under generally accepted accounting standards, has been accounted for as "other financing income". The receipts were, in substance, a reduction in the cost of hedging US dollar denominated indebtedness. NOTE 10 - CONTINGENCIES The Company was contingently liable as guarantor of credit facilities for related parties at March 31, 1999 to the extent of Baht 526.2 million. NOTE 11 - COMMITMENTS At March 31, 1999 subsidiary companies had commitments for capital expenditures in the approximate amount of Baht 244.1 million. NOTE 12 - SEGMENT INFORMATION For financial accounting purposes the Group divides its core business into two areas: Packaging & Consumer products and Technical products & Engineering. Non-core operations are grouped as Others. The results of operations for the three-month periods ended March 31, 1999 and 1998 are summarized below: Baht (Million) Packaging Technical Consumer products 1999 1998 products & Engineering Others Total Total Sales 1999 1,844.6 884.9 9.3 2,738.8 1998 1,782.7 1,043.2 9.4 2,835.3 Operating profit before interest excluding proportion attributable to minority interests 1999 301.3 28.9 6.7 336.9 1998 191.9 122.6 7.6 322.1 Minority interests proportion in operating profit before tax 14.9 87.6 Operating profit before interest 351.8 409.7 General corporate expenses (46.5) (33.6) Other financing income 10.3 - Net interest(expense)income (45.2) (77.4) Gain (loss) on foreign exchange 2.9 (96.0) Net income before tax 273.3 202.7 Income tax (79.0) (33.2) Net income before minority interests 194.3 169.5 Minority interests (5.2) (53.5) Net income after minority interests 189.1 116.0 As at March 31, 1999 and 1998 property, plant and equipment, net of accumulated depreciation and amortization, were allocated as follows: Baht (Million) Packaging Technical & Consumer products 1999 1998 products & Engineering Others otal Total Property plant and equipment: 1999 5,859.6 532.9 51.7 6,444.2 1998 5,377.2 527.4 76.7 5,981.3 General assets used 793.7 814.8 Total Property Plant and Equipment - Net 7,237.9 6,796.1 NOTE 13 - YEAR 2000 COMPUTER ISSUES (BEING UNAUDITED AND UNREVIEWED AND NOT FORMING PART OF ACCOUNTANTS' REVIEW REPORT) The Year 2000 problem arises because many computerized systems use two digits rather than four to identify the year. Date-sensitive systems may recognize the year 2000 as some other dates, resulting in errors when information using year 2000 dates is processed. Entities may experience the effects of the Year 2000 problem before, on, or after January 1, 2000, and the effects on operations and financial reporting, if not addressed and repaired properly and timely, may range from minor errors to significant systems failure which could affect an entity's ability to conduct normal business operations. In addition, it is not possible to be certain that all aspects of the Year 2000 problem affecting the entity, including those related to the efforts of customers, suppliers, or other third parties, will be fully resolved. The Company has commenced its plan to address the Year 2000 compliance problem. The plan is expected to be completed by June 1999. The expected costs of remedying the problem are approximately Baht 13.5 million and these costs will be recognized in the period in which they occur. Although the Company expected to have addressed the Year 2000 issue before the year 2000 occurs, the operations of the Company would still remain at risk from other entities with which the Company undertakes business if they are unable to remedy their own problems in time.