Notes to the Consolidated and Company Financial Statements

Note 1. General information

The Post Publishing Public Company Limited (the Company) is a public limited company and is incorporated and domiciled in Thailand. The address of its registered office is as follows:

Bangkok Post Building, 136 Sunthorn Kosa Road, Klong Toey, Bangkok 10110

The Company is listed in the Stock Exchange of Thailand. The principal business operations of the Company and its subsidiaries (the Group) are summarised as follows:

	Nature of business
The Post Publishing Public Company Limited	Publishing and distributing of newspaper, namely " BANGKOK POST "
Siam Communications Limited	Selling of magazines (inactive)
World Press Company Limited	Liquidation
Hachette Filipacchi Post Company Limited	Publishing and distributing of magazines, namely ELLE and ELLE DECOR
The Group employs approximately 862 people.

Note 2. Summary of significant accounting policies

The principal accounting policies adopted in the preparation of these consolidated and company financial statements are set out below:

Basis of preparation for consolidated and company financial statements

The consolidated and company financial statements are prepared in accordance with and comply with the generally accepted accounting principles in Thailand and the regulations of Stock Exchange of Thailand. The consolidated and company financial statements are prepared under the historical cost convention.

The consolidated accounts incorporate the accounts of the Group by eliminating inter-company balances, related transactions, investments in subsidiary companies and the share capital of subsidiary companies.

Subsidiary companies are companies in which The Post Publishing Public Company Limited holds more than fifty percent of the issued share capital or which The Post Publishing Public Company Limited can control the financial and operating policies. The subsidiary companies incorporated in the consolidated accounts are as follows:

Percent of holding as at 31 December
	1999	1998
Siam Communications Limited	100.00	100.00
World Press Company Limited	-	99.91
Hachette Filipacchi Post Company Limited	51.00	51.00

World Press Company Limited registered liquidation with the Ministry of Commerce on 29 December 1998 and is in the process of liquidation.

Basis of preparation for consolidated and company financial statements

Minority interests represent the equity in the consolidated companies not attributable to the shareholders of the Company.

Revenue recognition

Revenues from sales of newspapers and magazines are recognised when title to the goods sold passes to the customer, which is generally at the time when goods are dispatched to the customer as ordered.

Subscription income is recognised in the month in which subscription invoices are issued.

Revenue from advertising services are recognised as revenue in the period in which they are rendered. Normally the advertising services are considered to be rendered when the advertised publications are distributed.

Short-term investments

Marketable equity securities which classified as available for sale securities are carried at fair values. Fair value of marketable equity securities is calculated by basing on net asset value of each of equity security determined by the Fund Manager at the balance sheet date. Increases/decreases in the carrying amount are credited/charged against unrealised gains/losses on investment in available-for-sale securities in shareholders equity.

As the total amount of unrealised gains on investments in available-for-sale equity securities for the year ended 31 December 1999 was immaterial to the consolidated and company financial statements for such period, the unrealised gains were credited to statements of consolidated and company income.

Investments in fixed deposits and promissory notes which classified as general investments are carried at face value.

A review for impairment is carried out when there is a factor indicating that such investment might be impaired. If the recoverable amount of the investment is less than its carrying value, impairment loss is charged to the income statement.

On disposal of an investment, the difference between the net disposal proceeds and the carrying amount is charged or credited to the income statement.

Allowance for doubtful accounts

The Group's management estimates the allowance for doubtful accounts from the ending balance of accounts receivable. The estimate encompasses consideration of past collection experiences and other factors, such as changes in the composition and volume of the receivables, the relationship of the allowance for doubtful accounts to the receivables and the local economic conditions.

Inventories

Inventories are presented in the balance sheet at the lower of cost and net realisable value, cost being determined on the first-in, first-out basis. Provision is made, where necessary for obsolete and slow moving inventories.

Investments in subsidiary companies

Investments in subsidiary companies are accounted for in the non-consolidated financial statements by the equity method of accounting. Provisions are recorded for impairment in value (if any).

Equity acounting involoves recognising in the income statement the Company's share of the subsidiary companies' profit or loss for the year. the Company's interest in the subsidiary company is carried in the balance sheet an amount that reflects its share of the net assets of the subsidiary copany and includes goodwill on the acquisition (if any).

Long term investments in other companies

Long-term investments in other companies in which the group holds, directly or indirectly, less than fifty percent of voting shares and which it has no significant influence over their management, are stared at coast less provision for impairment in value, if any.

Related company

Companies are considered to be related if one company has the ablitity to control or exercise significant influence over the order company in making financial and operating decision or if most of the shareholders or executive management of both companies aree the same persons.

Property, plant and equipment

Carrying value - at coast: Property, plant and equiptment including land are recorded at cost. Cost is measured by the cash or cash equivalent price of obtaining the asset and bringing to the location and condition necssary for its intended use. Property, plant and equipment are presented in the balance sheet at cost less accumulated depreciation.

Depreciation: Depreciation is provided for on all property plant and equipment other than land over the estimated useful lives of the related assets using the straight-line method. The estimated useful lives are as follows:

Building	20	years
Building improvements	5-10	years
Leasehold improvements	5	years
Machinery and equipment	5-15	years
Office furnitue and equipment	5-15	years
Motor vehicles	5	years

The Group records depreciation as an expense in accordance with above.

When a fixed asset is retired, the Group will write-off both the asset amount and its related accumulated depreciation, and recognise any gain or loss from retirement of the asset.

Capital expenditures: Expenditures for addition, renewal and betterment, which result in a substantial increase in an asset's current replacement value, are capitalised.

Repair and maintenace cost are recognised as expenses when incurred.

Foreign currency transsactions
Transsactions denominated in foreign currencies during the year are translated into Baht at the rates of exchange ruling on the transaction dates. Realised gains and losses on foreign exchange transactions are recognised as income or epense as incurred. Monetary assets and liabilities at the balance sheet date denominated in foreign currencies are translated into Baht at the rated ruling at that date. Unrealised gains and losses on exchange are recognised as income or expense as incurred.

Defferred income tax
The Group accounts for deferred income tax arising from temporary differences in the recognition of income and expenses between financial accounting and tax accounting , using the liability method, to the extent that the deferred tax asset or liability is expected to be reserved in the future.

Earnings per share
Earning per share is computed by diving the net income for year by the wieghtd average number of paid-up ordinary shares in issue during the year.

Note 3. Short-term investments
Short-term investments as at 31 December comprise the following:

	Consolidated and Company
	1999	1998
	Baht	Baht
Fixed deposit accounts	165,614,719	61,240,097
Promissory notes	13,000,000	101,458,214
Investments in open-ended fixed income funds	.
Balance - at cost	20,000,000	-
Unrealised gains from changes in fair values of investments	109,780	_______
Total investments in open-ended fixed income funds	20,109,780	-
Total short-term investments	198,724,499	162,698,311

Note 4. Trade accounts receivable, net
Trade accounts receivable as at 31 December comprise the following:

	Consolidated		Company
	1999	1998	1999	1998
	Baht	Baht	Baht	Baht
Trade accounts receivable - third parties Less: Allowance for doubtful accounts Provision for goods returned Total trade accounts receivable, net	202,199,303	222,466,576	172,810,556	191,384,480
	37,693,964	39,375,942	36,969,908	36,504,602
	726,640	927,523	_____	927,523
	163,778,699	182,163,111	135,840,648	153,952,355

Included in the above trade accounts receivable are debtors which are outstanding over 3 months amounting to Bht 39,492,792 (1998: Bht 64,454,480). The Group has set up an allowance for doubtful accounts for these debtors amounting to Bht 37,693,964 (1998: Bht 39,375,942) since the directors are of the opinion that the Group will collect the full amount of the remaining debtors of Bht 1,798,828.

	Consolidated		Company
	1999	1998	1999	1998
	Baht	Baht	Baht	Baht
Over 3 months to 4 months	2,736,944	3,418,931	1,058,115	1,846,420
Over 4 months	36,755,848	61,035,549	28,419,195	50,967,906
	39,492,792	64,454,480	29,477,310	52,814,326

The Company has set up allowance for doubtful accounts amounting to Bht 36,969,908 (1998 : Bht 36,504,602).

Note 5. Short-term loan to related company

As at 31 December 1999, short-term loan to related company of Bht 15.3 million (1998 : Bht 15.3 million) is an unsecured loan to Hachette Filix pacchi Post Company Limited, a subsidiary company, for use in the normal course of business. The loan is denominated in Thai Baht and repayable on demand, bearing interest at the rate of 9% per annum (1998 : 11.5% per annum).

Note 6. Inventories, net
Inventories as at 31 December comprise:

Note 7. Other current assets Other current assets as at 31 December comprise:

Note 8. Long-term investments, net
Long-term investments as at 31 December are summarised as follows:

As at 31 December 1999, certificate of deposit amount of Bht 22 million is a negotiable certificate of deposit of Krungthai Bank Public Company Limited. The certificate of deposit will be due in 2002.

Investments in Capital Augmented Preferred Securities Funds amounting to Bht 25 million comprise investments in 1.5 million units of Bht 10 each of The Bualuang Capital Augmented Preferred Securities Fund, which is a perpetual and closed-end fund, totalling Bht 15 million and 1 million units of Bht 10 each of The Preferred Shares - Subordinated Debentures of DBS Thai Danu Bank Public Company Limited Fund, which is an indefinite life fund, totalling Bht 10 million. According to the Prospectus of The Bualuang Capital Augmented Preferred Securities Fund and Prospectus of The Preferred Shares - Subordinated Debentures of DBS Thai Danu Bank Public Company Limited Fund, the Capital Augmented Preferred Securities Funds will be redeemed within the periods of 5 - 7 years and 7 years respectively.

Investments in debentures amounting to Bht 40.3 million represent investments in 30,000 units and 10,000 units of Bht 1,000 each of unsubordinated and unsecured debentures of two public limited companies. The debentures carry interest at the fixed rates of 9% and 9.5% per annum throughout the terms of debentures. The debentures amounting to Bht 30 million and Bht 10.3 million will be redeemed in 2005 and 2004 respectively.

Other long-term investments are summarised as follows:

 

	Nature of business	Paid-up capital		Persent of holding		Consolidated (Baht) Cost method
		1999	1998	1999	1998	1999	1998
Other companies:				.		.
Business Information and Research Company Limited	Publisher and advertising	4,000,000	4,000,000	50.00	50.00	-	2,000,000
Singapore Press Holdings Limited	Publisher of magazines	27,393,300,000	27,393,300,000	0.00	0.00	16,124	16,124
Asia Magazine Limited	Publisher of magazines	75,143,373	17,010,373	10.90	10.11	12,725,577	6,280,533
Less: Provision for impairment in value of investments						12,741,701	8,296,657
Total investments in other companies, net						12,725,577	8,280,533
						16,124	16,124

Note 9. Property, plant and equipment, net

Note 10. Trade accounts payable
Trade accounts payable as at 31 December comprise:

Note 11. Short-term loans from and amounts due to related companies

Short-term loans from parent and subsidiary companies are unsecured and denominated in Thai Baht. The loans are repayable on demand and bear interest at rate of 9% per annum (1998 : 5 - 16% per annum).

Note 12. Share capital
Share capital as at 31 December is as follows:
Consolidated and Company

Note 13. Dividends

At the annual general meeting of shareholders held on 30 April 1999, the shareholders resolved to declare a dividend for the year ended 31 December 1998 of Bht 1.50 per share, totalling Bht 75 million. The dividend was distributed to the shareholders on 14 May 1999.

On 17 December 1999, the Board of Directors approved an interim dividend appropriated from the retained earnings as at 1 January 1999 and the result of operations for the nine-month period ended 30 September 1999 of Bht 1.50 per share, totalling Bht 75 million. The interim dividend was distributed to the shareholders on 14 January 2000.

Note 14. Legal reserve

The Company allocates not less than 5 percent of its annual net income less the accumulated losses brought forward (if any) to a reserve fund until this fund attains an amount not less than 10 percent of the registered capital.

Note 15. Provident fund

The Company has established a contributory registered provident fund, in accordance with the Provident Fund Act B.E. 2530. The registered provident fund plan was approved by the Ministry of Finance on 27 June 1990.

Under the plan, the employees must contribute 7 percent of their basic salaries, to be matched by the Company. The Company has appointed a fund manager to manage the fund in accordance with the terms and conditions prescribed in the Ministerial Regulation No. 2 (B.E. 2532) issued under the Provident Fund Act B.E. 2530.

Note 16. Change in accounting principle

Deferred income tax

The directors decided to adopt the liability method of accounting for deferred income tax on 1 April 1998 with retroactive effect as from 1 January 1998 in order to comply with generally accepted accounting principles.

The effect of the adoption of the liability method of accounting for deferred income tax on the financial statements for the year ended 31 December 1998 was to increase the net income by Bht 9,562, 431 (Bht 0.19 per share). The cumulative effect of the adoption for the prior years to 31 December 1997, amounting to Bht 6,506,565, was presented as a separate component in the consolidated and company statements of income for the year ended 31 December 1998.

Note 17. Related company transactions
The Company provides services to related companies in the normal course of business. The services are transacted at market prices. Significant transactions with the subsidiaries are asfollows:

	Company financial statements
	For the year ended 31 December 1999	For the year ended 31 December 1998
	Baht	Baht
Revenues:	.
Sales	8,533,531	5,962,245
Printing fee	9,978,854	5,405,147
Management and rental fees	2,400,547	2,463,139
Interest income	1,377,000	1,759,500
Expenses:
Management fee	1,698,480	649,620
Interest expenses	9,863	964,756

Note 18. Commitment

The Company has guaranteed credit facilities given by a local bank to its subsidiary company in a total amount of Bht 10.2 million (1998 : Bht 10.2 million).

Note 19. Bank guarantees

As at 31 December 1999, the Group has commitments with a local bank relating to letters of guarantee issued in the normal course of business by the bank to third parties amounting to Bht 5.9 million (1998 : Bht 5.8 million).

Note 20. Forward foreign exchange contracts

During the year the Group entered into forward foreign exchange contracts to manage exposure to fluctuations in foreign currency exchange rates on specific transactions. At 31 December 1999 the settlement date on open forward contracts ranged between 1 month and 10 months. The open forward contracts of the Group to buy US Dollars covering newsprint were US$ 1,836,926.

Note 21. Year 2000 issue

(This note is unaudited)

As a result from the preparation and planning for the Y2K, all of the Group's computer systems were unaffected and continued to function and rolled over into the year 2000 without any problem.

To date, the Group is not aware of any Y2K problem which have had or may have a significant impact on the Group's operations, whether caused by the Group's own systems or by the third parties.



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