See notes to the interim financial statements PADAENG INDUSTRY PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF RETAINED EARNINGS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, "UNAUDITED" CONSOLIDATED THE COMPANY ONLY Note 2000 1999 2000 1999 Baht Baht Baht Baht UNAPPROPRIATED RETAINED EARNINGS (DEFICIT) Brought forward (deficit) before adjustment (3,069,490,398) (3,222,202,601) (3,031,270,271) (3,210,798,168) Adjustment for restoration expense 19 (71,647,141) (63,957,042) (71,647,141) (63,957,042) Brought forward (deficit) after adjustment (3,141,137,539) (3,286,159,643) (3,102,917,412) (3,274,755,210) Less: Net income (loss) for the six-month period 94,843,851 71,367,800 108,028,720 107,573,400 Total unappropriated retained earnings (deficit) (3,046,293,688) (3,214,791,843) (2,994,888,692) (3,167,181,810) APPROPRIATED RETAINED EARNINGS Legal reserve 98,200,000 98,200,000 98,200,000 98,200,000 Reserve for business expansion 1,969,000,000 1,969,000,000 1,969,000,000 1,969,000,000 TOTAL APPROPRIATED RETAINED EARNINGS 2,067,200,000 2,067,200,000 2,067,200,000 2,067,200,000 TOTAL RETAINED EARNINGS (DEFICIT) (979,093,688) (1,147,591,843) (927,688,692) (1,099,981,810) See notes to the interim financial statements PADAENG INDUSTRY PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, "UNAUDITED" CONSOLIDATED THE COMPANY ONLY 2000 1999 2000 1999 Baht Baht Baht Baht CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) 94,843,851 71,367,800 108,028,720 107,573,400 Items to reconcile net income (loss) to net cash: Equity in undistributed net loss (income) of subsidiary companies - - 2,751,617 (6,489,296) Provision for obsolete inventories (reversal) (263,694) 403,600 (263,694) 403,600 Inventories written off 2,245,741 - - - Depreciation 184,719,187 166,997,252 184,471,782 166,724,893 Deferred charges written off 8,994,869 7,418,007 8,994,869 7,418,007 Amount to be adjusted for provision for guarantee of a subsidiary, previously estimated - (1,151,000) - (22,315,677) Property, plant and equipment written off 19,110 17,517,555 19,110 17,517,555 Other assets written off - 340,577 - - Withholding tax written off 161,823 - - - Deferred financial advisory fee written off 9,345,826 - 9,345,826 - Deferred interest on hire purchase written off - 408,307 - 408,307 Premium on forward contract amortization - 7,513,844 - 7,513,844 Provision for doubtful debts-trade accounts and notes receivable (reversal) (7,685,312) (17,433,636) (7,395,312) (17,025,962) 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 property, plant and equipment 252,821 105,718 333,359 226,929 Loss (gain) on exchange rate 64,661,413 (5,382,738) 58,870,039 (5,724,272) Minority interest in net income (loss) 952,938 (511,831) - - Income (loss) from operations before changes in operating assets and liabilities 358,248,573 252,375,531 362,156,316 261,213,404 Operating assets (increase) decrease Deposits at banks used as collateral 11,354,589 - - - Trade accounts and notes receivable 55,886,985 (3,070,511) 56,663,211 (30,677,249) Advances to related companies (555,684) 275,858 (569,560) (319,592) Inventories (467,713,523) 84,062,372 (468,249,492) 58,887,610 Withholding tax (42,659) (101,051) (14,874) (41,940) Accounts receivable Revenue Department 13,648,578 376,819 13,724,913 363,931 Other receivables (57,706) 12,387,014 (120,910) 11,688,122 Other current assets (4,970,073) (31,373,399) (6,162,280) (33,498,465) PADAENG INDUSTRY PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE SIX-MONTH PERIODS ENDED JUNE 30, "UNAUDITED" CONSOLIDATED THE COMPANY ONLY 2000 1999 2000 1999 Baht Baht Baht Baht Operating liabilities increase (decrease) Trade accounts and notes payable 367,466,218 17,097,574 367,418,996 18,243,905 Accrued interest expenses 2,752,810 1,149,953 (1,523,609) (2,741,521) Accrued electricity expenses 5,120,372 (12,874,292) 5,120,372 (12,874,292) Forward contract payable - (33,495,207) - (33,495,207) Provision for guarantee of subsidiary - (6,790,000) (38,750,000) (34,433,000) Other current liabilities (39,911,126) (32,927,624) (38,351,191) (31,486,483) Provision for restoration (7,514,244) 3,845,050 (7,514,244) 3,845,050 Net cash provide by (used in) operating activities 293,713,110 250,938,087 243,827,648 174,674,273 CASH FLOWS FROM INVESTING ACTIVITIES Investment in related companies decrease - 1,018,200 - 1,018,200 Loans to related companies decrease - - 11,000,000 - Cash paid for purchase of property, plant and equipment (77,033,536) (31,170,909) (77,378,226) (31,216,127) Cash received from sales of property, plant and equipment 110,463 168,646 26,626 35,313 Other assets (increase) (7,736,668) (18,665,377) (7,837,827) (17,749,485) Net cash provided by (used in) investing activities (84,659,741) (48,649,440) (74,189,427) (47,912,099) CASH FLOWS FROM FINANCING ACTIVITIES Bank overdrafts and loans from financial institutions increase (decrease) (18,304,800) 111,992,018 (18,222,782) 134,742,897 Loans from related companies increase (decrease) - - (1,879,959) 5,600,000 Short-term loans from related companies increase - 317,073 - - Short-term loans and advance from directors and employees (decrease) - (7,000,000) - - Long-term loans (decrease) (322,843,101) (174,225,303) (284,093,101) (135,158,228) Net cash provided by (used in) financing activities (341,147,901) (68,916,212) (304,195,842) 5,184,669 Effects from exchange rate in cash and cash equivalents increase 49,626 157,368 40,150 156,449 Net increase (decrease) in cash and cash equivalents (132,044,906) 133,529,803 (134,517,471) 132,103,292 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 June 30, 266,224,256 298,901,465 200,667,316 235,998,711 See notes to the interim financial statements