NOTE 6 - 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) Group- Consolidated Company Type of Business Shareholding 1998 1997 1998 1997 Subsidiary Companies Berli Jucker (Myanmar) Ltd. Import & export 100.00% - - - - Montana Co., Ltd. Sales of cosmetics 100.00% - - 3,769 3,295 and machinery Polipharm Co., Ltd. Manufacture of 100.00% - - 66,946 64,090 pharmaceuticals Siam Snack Co., Ltd Manufacture of 100.00% - - 196,894 186,902 snack foods Cosma Ltd. Sales of cosmetics 100.00% - - 196 192 (a subsidiary holds 98.00%) Rubia Industries Ltd. Manufacture of soap, 99.70% - - 179,051 228,562 cosmetics & confectionery Tropicwood Co., Ltd. Dormant 98.30% - - 4,937 12,839 Thai Flourspar & Minerals Manufacture of 95.00% - - 21,262 21,894 Co., Ltd. calcium carbonate Cellox Paper Co., Ltd. Manufacture of 72.49% in 1998 - - 596,271 383,669 paper products and 54.62% in 1997 Thai-Scandic Steel Co., Ltd. Manufacture of 71.04% of ordinary - - - 3,247 galvanized steel shares in 1998 structures (a subsidiary holds 75.00 %) and 75.00% in 1997 and 100.00% of - - 130,000 130,000 preference shares Thai Glass Industries PCL. Manufacture of 66.13% in 1998 - - 2,072,162 1,955,940 (Market value glass containers and 61.89% Baht 2,321.20 million at in 1997 March 31, 1998 and Baht 2,896.39 million at March 31, 1997) Thai Klinipro Co., Ltd. Manufacture of 51.00% - - 40,166 30,930 surgical gowns Berli Prospack Co., Ltd. Manufacture of 50.00% in 1998 - - 78,669 - plastic containers (Amounts in Thousands of Baht) Group- Consolidated Company Type of Business Shareholding 1998 1997 1998 1997 Associated Companies BJC Marine Resources Dormant 50.00% 16,556 17,480 16,556 17,480 Development Co., Ltd. Thai-Swiss Metal Works Dormant 50.00% - - - - Co., Ltd. ADAT Sales (Thailand) Ltd. Travel 48.32% 3,285 4,064 - - (a subsidiary holds 49.00%) Thai-Pacific Foods Ltd. Dormant 47.33% - - - - Bell International Surveying 41.00% 7,159 8,947 7,159 8,947 Surveyors & Adjusters Ltd. BJT Water Co., Ltd. Consultancy and 35.00% 18,101 14,868 18,101 14,868 management service for water and waste water systems Beston Food (Shanghai) Manufacture of 34.00% 37,336 11,247 37,336 11,247 Co., Ltd. snack foods Siemens Limited Electrical engineering, 25.50% 80,000 26,967 80,000 26,967 telecommunications and mass transportation Pacific Leisure Travel 23.67% 2,686 3,695 - - (Thailand) Ltd. (a subsidiary holds 24.00%) O-I Pacific (Machinery and Sale of machinery for 19.84% in 1998 - 354 - - Distribution) Ltd. glass container and 18.57% in 1997 factories (a subsidiary holds 30.00%) Total Investments in Related Parties 165,123 87,622 3,549,475 3,101,069 Other Companies Siam Industrial Products Ltd. Import 20.00% 50 50 - - (25.00% paid up) (a subsidiary holds 20.00%) J.N.P.A. Co., Ltd. Property holding 17.24% 53,779 53,779 53,779 53,779 Pathum Thani Water Co., Ltd. Clean water supply 15.00% 145,500 93,000 145,500 93,000 Siam Cement Myanmar Cement distributor 15.00% 837 837 837 837 Trading Ltd. Ethoxylates Manufacturing Manufacture of 5.00% - 1,896 - 1,896 Pte. Ltd. chemical products Thaiviet Invexim Co., Ltd. Import & export 1.00% 100 100 100 100 Total Investments in Other Companies 200,266 149,662 200,216 149,612 At March 31, 1998 and 1997 the Company had an excess loss over book value of investments in Agri-Systems (Thailand) Co., Ltd. and Berli Jucker (Myanmar) Ltd. totalling Baht 31.61 million and Baht 24.45 million, respectively, which is presented as other liabilities in the 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, 1998 and 1997 is based on financial information obtained from reviewed financial statements and from management, which had not been audited or reviewed by the auditors in accordance with standards established by The Institute of Certified Accountants and Auditors of Thailand. NOTE 7 - CONTINGENCIES The Company was contingently liable as guarantor of credit facilities for related parties at March 31, 1998 to the extent of Baht 396 million. At March 31, 1998, a subsidiary company was contingently liable as guarantor of credit facilities provided to Vina Glass Industries Limited amounting to Baht 402 million (DEM 19 million). NOTE 8 - COMMITMENTS At March 31, 1998 subsidiary companies had commitments for capital expenditures in the approximate amount of Baht 323 million. NOTE 9 - 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 classified as Others. The results of operations for the three-month period ended March 31, 1998 are summarized below: Baht (Million) Packaging Technical & Consumer products Others products & Engineering Total Sales 1,782.7 1,043.2 9.4 2,835.3 Operating profit before interest excluding proportion attributable to minority interests 191.9 122.6 7.6 322.1 Minority interests proportion in operating profit before tax 87.6 Operating profit before interest 409.7 General corporate expenses (33.6) Net interest(expense)income (77.4) Loss on foreign exchange (96.0) Net income before tax 202.7 Income tax (33.2) Net income before minority interests 169.5 Minority interests (53.5) Net income after minority interests 116.0 As at March 31, 1998 property, plant and equipment, net of accumulated depreciation and amortization, were allocated as follows: Baht (Million) Packaging Technical & Consumer products products & Engineering Others Total Property plant and equipment: 5,377.2 527.4 76.7 5,981.3 General assets used 814.8 Total Property Plant and Equipment - Net 6,796.1 NOTE 10 - RECLASSIFICATION OF ACCOUNTS Certain accounts in the financial statements for the period ended March 31, 1997 are reclassified to comply with the presentation of the accounts in the financial statements for the period ended March 31, 1998.