Items to reconcile net income (loss) to net cash: Equity in undistributed net (income) loss of subsidiary and associated companies - - 698,745 (4,364,846) Provision for obsolete inventories (19,943) (9,742) (19,943) (9,742) Depreciation 91,977,579 83,395,713 91,846,052 83,270,930 Deferred charges written off 4,637,637 3,801,187 4,637,637 3,801,187 Loss from guarantee of a subsidiary (reversal of provision guarantee) - (1,151,000) - (22,315,677) Fixed assets written off 18,360 - 18,360 - Other assets written off - 340,577 - - Withholding tax written off 161,823 - - - Premium on forward contract amortisation - 7,513,844 - 7,513,844 Deferred interest on hire purchase amortisation 645,613 - 645,613 - Provision for doubtful debts-trade accounts receivable (reversal) (170,000) (5,844,010) - (5,623,405) Provision for short-term loans and advances to related companies (reversal) - (200,000) (3,000,000) - Accrued fee received written off - 4,982,076 - 4,982,076 Loss (gain) on disposal of fixed assets - (121,211) - - Loss (gain) on exchange rates 10,115,385 31,785,023 9,192,264 28,671,929 Minority interest in net income (loss) 446,226 (460,708) - - Income (loss) from operations before changes in operating assets and liabilities 179,236,711 120,697,315 176,456,212 117,369,348 Operating assets (increase) decrease Deposits at banks used as collateral 11,354,589 - - - Trade accounts receivable 38,682,092 (44,481,463) 41,197,738 (71,968,270) Advances to related companies (217,965) 37,258 (217,039) (398,192) Inventories (31,334,107) 110,738,046 (31,875,701) 92,459,866 Withholding tax (16,677) (27,452) (503) (12,032) Account receivable Revenue Department 6,903,211 6,744,212 6,926,510 6,685,590 Other receivables (1,211,511) 10,194,112 (1,074,783) 10,051,390 Other current assets (6,937,602) (18,239,791) (7,653,087) (19,022,066) Operating liabilities increase (decrease) Trade accounts payable (71,627,314) 3,845,219 (71,640,360) 4,408,505 Accrued interest expenses 791,046 992,509 (1,319,012) (974,010) Accrued electricity expenses (3,809,472) (2,360,255) (3,809,464) (2,360,255) Forward contract payable - (23,840,243) - (23,840,243) Provision for guarantee of a subsidiary - (6,790,000) (20,000,000) (6,790,000) Other current liabilities (15,506,670) (26,063,018) (16,785,973) (24,299,194) Net cash provide by (used in) operating activities 106,306,331 131,446,449 70,204,538 81,310,437 PADAENG INDUSTRY PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE QUARTER ENDED MARCH 31, UNAUDITED CONSOLIDATED THE COMPANY ONLY 2000 1999 2000 1999 Baht Baht Baht Baht CASH FLOWS FROM INVESTING ACTIVITIES Loans to related companies decrease - - 11,000,000 - Cash payments for purchases of property, plant and equipment (26,991,527) (12,608,456) (27,163,882) (12,762,408) Cash received from sales of property, plant and equipment - 168,646 - 35,313 Other assets (increase) (1,287,630) (3,055,446) (1,332,167) (1,558,093) Net cash provided by (used in) investing activities (28,279,157) (15,495,256) (17,496,049) (14,285,188) CASH FLOWS FROM FINANCING ACTIVITIES Bank overdrafts and loans from financial institutions increase (decrease) 175,378,784 (39,965,241) 175,392,040 (16,696,354) Loans from related companies increase (decrease) - - (879,959) 800,000 Short-term loans from related companies increase 723,352 2,577,476 - - Short-term loans and advance from directors decrease - (4,000,000) - - Prepayment for financial advisory fee increase (2,185,554) - (2,185,554) Long-term loans decrease (305,653,485) (157,735,705) (284,930,134) (135,158,228) Net cash provided by (used in) financing activities (131,736,903) (199,123,470) (112,603,607) (151,054,582) Effects from exchange rate on cash and cash equivalents increase 1,478,965 294,784 1,476,671 289,677 Net increase (decrease) in cash and cash equivalents (52,230,764) (82,877,493) (58,418,447) (83,739,656) Cash and cash equivalents as at January 1 398,269,162 165,371,662 335,184,787 103,895,419 Cash and cash equivalents as at March 31, 346,038,398 82,494,169 276,766,340 20,155,763 See notes to the interim financial statements