"The auditor was unable to reach any conclusion because the company and its subsidiaries have sustained significant accumulated losses and there is uncertainty regarding both the company's ability to operate successfully and the sufficiency of its

cash flow," the SET said in a statement.

The stock exchange has demanded clarification of three issues: long-term loans made by BNT to related companies; a deposit made by a subsidiary to a private company for rental of a radio station and its air time; and overdue accounts receivable from related companies.

The clarifications must be made before next Thursday.

In the first quarter, BNT plunged into a net loss of Bt73.77 million, compared with a net profit of Bt1.31 million in the corresponding period last year.

The SET cast doubts over claims that, at the end of March, BNT had yet to receive loan repayments from two related companies, even though it once stated that the repayments

would be completed by the end of 2005.

Broadcasting Network (Thailand) and Panorama Documentary, both of which are almost entirely owned by BNT's chief executive, Pitipat Bhuraleus, owe BNT Bt11.43 million and Bt1.26 million, respectively.

"The SET requires the reasons why the two debtors have not repaid their debt to BNT," the statement said. "It also wants to know BNT's procedure and progress in collecting the principal and interest from the loans and its scope for collecting loan principal and interest from related companies in the future."

On another issue, BNT is required to explain the relationship between it, its subsidiary company and the lessor of a radio station.

In the deal in question, one of BNT's subsidiary companies deposited Bt42.6 million with a private company for rental of a radio station and its air time. However, the company claimed the deal collapsed because the lessor of the radio station was unable to deliver two radio broadcasting frequencies on time.

Consequently, the lessor repaid the deposit with 12 forward-dated cheques for a total amount of Bt40.35 million, leaving Bt2.25 million unpaid, in "damage".

BNT is required to supply details of the radio station's

lessor, list its top five major shareholders, and explain why the

lessor was unable to deliver

the two broadcasting frequencies.

"Why did BNT revoke the contract with the radio-station lessor when the frequencies couldn't be delivered?" the SET asked. "This resulted in a Bt2.25-million loss from the settlement. Why did BNT have to accept the damage?

"The SET wants to know why BNT's subsidiary allowed the radio-station lessor to repay its deposit for rental of the radio station by means of 12 cheques instead of a cash repayment. As well, it wants to know the opinion of BNT's board of directors regarding cheque repayment instead of cash."

BNT was asked to reveal the amount of each repayment and the date on each cheque, as well as giving updated repayment information.

With regard to BNT's overdue accounts receivable from related companies, the SET asked the company to name the overdue accounts and specify the relationship between them and

BNT. As well, it wants to know

the top five shareholders in

the case of each overdue account and the level of their shareholding.

BNT's accounts receivable as of March 31 amounted to Bt103.59 million. Of this, Bt48.88 million, or 47.19 per cent of the total, was provided for by way of allowance for doubtful accounts.

Accounts receivable from related companies totalled Bt16.67 million, and was a part of total accounts receivable.

BNT Plc is required to inform the stock echange authorities of its past procedures and progress in collecting its accounts receivable, its plansin this regard for the future, and to explain company policy of allowing for doubtful accounts in overdue accounts receivable.

Siriporn Chanjindamanee

The Nation