PADAENG INDUSTRY PUBLIC COMPANY LIMITED AND SUBSIDIARIES BALANCE SHEETS AS AT MARCH 31, UNAUDITED CONSOLIDATED THE COMPANY ON EQUITY METHOD 1999 1998 1999 1998 Note Baht Baht Baht Baht LIABILITIES AND SHAREHOLDERS EQUITY (CONTINUED) SHAREHOLDERS EQUITY SHARE CAPITAL Authorized share capital 226,000,000 ordinary shares of Baht 10.00 each 2,260,000,000 2,260,000,000 2,260,000,000 2,260,000,000 Issued and paid-up share capital 150,899,993 ordinary shares of Baht 10.00 each, fully paid 1,508,999,930 1,508,999,930 144,369,558 ordinary shares of Baht 10.00 each, fully paid 1,443,695,580 1,443,695,580 PREMIUM ON SHARE CAPITAL 866,121,740 840,000,000 866,121,740 840,000,000 RETAINED EARNINGS (DEFICIT) Appropriated 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 Unappropriated (deficit) (3,225,537,035) (2,264,645,577) (3,189,355,116) (2,264,645,577) Less Unrealized loss on security available for sale (93,045,454) (27,662,162) (93,045,454) (27,662,162) TOTAL SHAREHOLDERS EQUITY 1,123,739,181 2,058,587,841 1,159,921,100 2,058,587,841 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 4,756,248,060 6,768,033,214 4,853,411,687 6,239,488,212 See notes to the interim financial statements The interim financial statements have been subjected to a review PADAENG INDUSTRY PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF INCOME AND RETAINED EARNINGS FOR THE QUARTER ENDED MARCH 31, UNAUDITED CONSOLIDATED THE COMPANY ON EQUITY METHOD 1999 1998 1999 1998 Note Baht Baht Baht Baht REVENUES Sales 1,040,480,214 1,678,447,050 1,038,869,646 1,678,672,193 Other income Interest income 3,108,922 9,699,166 1,722,063 31,869,285 Gain on exchange rate - 283,139,636 - 283,139,636 Loss on provision guarantee (Reversal) 16 1,151,000 - 22,315,677 - Equity in undistributed net profit of subsidiary and associated companies - 14,853 4,364,846 142,987,653 Others 133,240 47,222,093 133,180 7,914,910 Total Revenues 1,044,873,376 2,018,522,798 1,067,405,412 2,144,583,677 EXPENSES Cost of sales 860,078,881 1,277,407,230 859,051,639 1,274,056,387 Selling and administrative expenses 64,721,342 115,508,943 70,567,341 111,916,833 Loss on exchange rate 28,671,929 - 28,671,929 - Interest expenses 83,529,382 108,957,827 86,407,277 113,105,471 Directors remuneration 184,000 307,000 184,000 307,000 Other expenses 1,080,174 2,145,230 1,080,174 2,145,230 Total Expenses 1,038,265,708 1,504,326,230 1,045,962,360 1,501,530,921 Net profit before minority interest and the result of operations of a subsidiary which ceased its operations 6,607,668 514,196,568 21,443,052 643,052,756 Minority interest in net profit of a subsidiary company 460,708 334,162 - - Net profit before the result of operations of a subsidiary which ceased its operations 7,068,376 514,530,730 21,443,052 643,052,756 Net profit (loss) of a subsidiary which ceased its operations 17 (10,402,810) 128,522,026 - - NET PROFIT (LOSS) (3,334,434) 643,052,756 21,443,052 643,052,756 NET PROFIT (LOSS) (3,334,434) 643,052,756 21,443,052 643,052,756 RETAINED EARNINGS (DEFICIT) BROUGHT FORWARD (3,222,202,601) (2,907,698,333) (3,210,798,168) (2,907,698,333) RETAINED EARNINGS (DEFICIT) CARRIED FORWARD (3,225,537,035) (2,264,645,577) (3,189,355,116) (2,264,645,577) NET PROFIT (LOSS) FOR THE QUARTER PER SHARE (0.02) 4.45 0.14 4.45 See notes to the interim financial statements The interim financial statements have been subjected to a review PADAENG INDUSTRY PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE QUARTER ENDED MARCH 31, UNAUDITED CONSOLIDATED THE COMPANY ON EQUITY METHOD 1999 1998 1999 1998 Baht Baht Baht Baht CASH FLOWS FROM OPERATING ACTIVITIES Net profit (loss) (3,334,434) 643,052,756 21,443,052 643,052,756 Items to reconcile net profit (loss) to net cash: Equity in undistributed net profit of associated companies - (14,853) - - Equity in undistributed net (profit) loss of subsidiary and associated companies - - (4,364,846) (142,987,653) Provision for obsolete inventories (9,742) (47,442) (9,742) (47,442) Depreciation 83,395,713 95,186,383 83,270,930 81,330,454 Pre-operating expenses written off 3,801,187 8,293,143 3,801,187 5,897,544 Provision for guarantee expenses of a subsidiary (1,151,000) - (22,315,677) - Other assets written off 340,577 10,193,801 - 10,193,801 Premium on forward contract written off 7,513,844 - 7,513,844 - Provision for doubtful debts-trade accounts and notes receivable (Reversal) (5,844,010) 10,977,562 (5,623,405) 25,355,585 Provision for doubtful debts-short term loans and advance to related companies (Reversal) (200,000) - - - Fee received from a company (Reversal) 4,982,076 - 4,982,076 - Loss (gain) on disposal of property, Plant and equipment (121,211) (795,974) - (548,703) Loss (gain) on exchange rate 31,785,023 (545,046,060) 28,671,928 (283,139,637) Minority interest in net (loss) (460,708) (334,161) - - Profit (loss) from operations before changes in operating assets and liabilities 120,697,315 221,465,155 117,369,347 339,106,705 Operating assets (increase) decrease Deposits at banks used as collateral - 97,000,000 - 50,000,000 Trade accounts and notes receivable (44,481,463) (100,518,829) (71,968,270) (27,512,664) Short-term loans and advances to related companies 37,258 3,083,698 (398,192) 3,704,988 Inventories 110,738,046 579,862,795 92,459,866 459,868,998 Withholding tax (27,452) (158,777) (12,032) (36,427) Accounts receivable Revenue Department 6,744,212 1,023,000 6,685,590 (2,392,152) Other receivables 10,194,112 33,932,679 10,051,390 35,142,342 Deposits for purchase of goods - (80,936,350) - (80,936,350) Other current assets (18,239,791) (18,198,205) (19,022,066) (20,425,810) PADAENG INDUSTRY PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, CONSOLIDATED THE COMPANY ON EQUITY METHOD 1999 1998 1999 1998 Baht Baht Baht Baht Operating liabilities increase (decrease) Trade accounts and notes payable 3,845,219 (14,983,064) 4,408,506 13,785,016 Deposits from export sales - (570,672,000) - (570,672,000) Accrued interest 992,509 (87,840,633) (974,010) (61,499,153) Accrued electricity expenses (2,360,255) 51,935,548 (2,360,255) 51,935,548 Provision for guarantee expenses of a subsidiary (6,790,000) - (6,790,000) - Forward contract payable (23,840,243) - (23,840,243) - Other current liabilities (26,063,018) 102,994,089 (24,299,194) 67,446,864 Net cash provided by (used in) operating activities 131,446,449 217,989,106 81,310,437 257,515,905 CASH FLOWS FROM INVESTING ACTIVITIES Investment in related companies (increase) decrease - - - 103,559,446 Loans to related companies(increase) decrease - - - (135,119,320) Purchase of property, plant and equipment (12,608,456) (7,970,492) (12,762,408) (13,258,065) Proceeds on sales of property, plant and equipment 168,646 892,521 35,313 620,521 Other assets (increase) decrease (3,055,446) (35,230,524) (1,558,093) (3,780,191) Net cash provided by (used in) investing activities (15,495,256) (42,308,495) (14,285,188) (47,977,609) CASH FLOWS FROM FINANCE ACTIVITIES Bank overdrafts and loans from financial institutions increase (decrease) (39,965,241) 900,880,947 (16,696,354) 928,890,631 Loans from related companies increase - - 800,000 - Short-term loans and advances from directors and employees (4,000,000) - - - Short-term loans and advances from related companies 2,577,476 (24,274,669) - - Current portion of long-term loans - (384,782,946) - (73,532,946) Long-term liabilities subject to restructuring - 311,250,000 - - Long-term loans increase (decrease) (157,735,705) (911,761,651) (135,158,228) (1,049,806,545) (199,123,470) (108,688,319) (151,054,582) (194,448,860) Effects from exchange rate in cash and cash equivalents increase (decrease) 294,784 - 289,677 - Net increase (decrease) in cash and cash equivalents (82,877,493) 66,992,292 (83,739,656) 15,089,436 Cash and cash equivalents as at January 1 165,371,662 294,319,651 103,895,419 286,065,933 Cash and cash equivalents as at March 31 82,494,169 361,311,943 20,155,763 301,155,369 See notes to the interim financial statements The interim financial statements have been subjected to a review