1999 1998 1999 1998 Baht Baht Baht Baht Operating liabilities increase (decrease) Trade accounts and notes payable 59,485,882 169,668,905 59,429,543 163,020,289 Accrued interest expenses 200,063 (1,008,447) (3,117,240) (6,115,445) Accrued electricity expenses 5,952,788 (3,320,714) 5,907,200 (4,153,510) Forward contract payable (33,831,450) - (33,831,450) - Provision for guarantee of a subsidiary (19,952,000) - (35,890,000) - Other current liabilities 726,687 (2,474,859) 10,529,661 5,311,262 Net cash provided by (used in) operating activities 162,406,090 184,876,743 139,493,178 183,685,459 CASH FLOWS FROM INVESTING ACTIVITIES Investment in related companies and other companies (increase) decrease 1,491,468 - 1,491,468 - Loans to related companies (increase) decrease - - - (43,178,796) Cash paid for purchase of property, plant and equipment (14,466,337) (33,912,655) (14,558,548) (30,629,575) Cash received from sales of property, plant and equipment 424,129 1,407,618 337,994 967,619 Other assets (increase) decrease (32,924,005) (37,583,208) (32,607,330) (14,206,479) Net cash provided by (used in) investing activities (45,474,745) (70,088,245) (45,336,416) (87,047,231) CASH FLOWS FROM FINANCING ACTIVITIES Bank overdrafts and loans from financial institutions increase (decrease) 116,445,898 8,267,140 115,947,382 5,698,539 Short-term loans and advance from related companies 11,714,936 461,851 2,300,000 - Short-term loans and advance from directors and employees (3,000,000) (21,492) - (21,492) Long-term loans increase (decrease) (171,443,743) (20,000,000) (140,627,096) - Net cash provided by (used in) financing activities (46,282,909) (11,292,501) (22,379,714) 5,677,047 Effects from exchange rate in cash and cash equivalents increase (decrease) 2,559,419 (7,978,463) 2,537,033 (7,978,463) Net increase in cash and cash equivalents 73,207,855 95,517,534 74,314,081 94,336,812 Cash and cash equivalents as at July 1 298,901,465 491,804,249 235,998,711 434,355,692 Cash and cash equivalents as at September 30 372,109,320 587,321,783 310,312,792 528,692,504 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 NINE-MONTH PERIOD ENDED SEPTEMBER 30, UNAUDITED CONSOLIDATED THE COMPANY ONLY 1999 1998 1999 1998 Baht Baht Baht Baht CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) (57,876,365) 543,166,809 (16,554,118) (6,882,758) Items to reconcile net income (loss) to net cash: Equity in undistributed net income of associated companies - (31,035) - - Equity in undistributed net loss (income) of subsidiary and associated companies - - (8,472,913) 94,395,469 Provision for obsolete inventories (472,421) (212,594) (472,421) (212,594) Obsolete inventories written off 559,753 - 559,753 - Depreciation 271,706,007 302,344,180 271,282,876 246,901,253 Deferred charges written off 11,127,011 109,056,860 11,127,011 41,117,596 Adjustment to the provision for guarantee of a subsidiary (1,151,000) - (22,315,677) - Property, plant and equipment written off 17,517,555 - 17,517,555 - Other assets written off 713,566 - - - Premium on forward contract written off 7,513,844 - 7,513,844 - Deferred interest on hire purchase written off 632,065 - 632,065 - Withholding tax written off - 2,755,394 - 2,755,394 Allowance for doubtful debts-Trade accounts receivable (Reversal) (17,280,041) 53,725,930 (16,752,371) 101,523,526 Allowance for doubtful debts- Loans and advance to related companies (Reversal) (200,000) - - 479,631,361 Accrued fee received written off 4,982,076 - 4,982,076 - Loss (gain) on disposal of property, plant and equipment 25,218 (1,523,976) 226,929 (1,487,433) Loss (gain) on exchange rate 212,737,309 (317,291,066) 197,689,996 (329,419,586) Loss from diminution in value of asset - 74,932,723 - - Minority interest in net (loss) (296,840) (1,364,599) - - Income (loss) from operations before changes in operating assets and liabilities 450,237,737 765,558,626 446,964,605 628,322,228 Operating assets (increase) decrease Deposits at banks used as collateral - (8,000,000) - - Deposits at financial institutions used as collateral - 97,000,000 - 50,000,000 Trade accounts receivable (40,044,872) 80,685,169 (69,196,562) 70,115,446 Short-term loans and advances to related companies (407,200) (92,244) (982,650) 529,047 Inventories 51,629,096 525,029,008 24,880,865 374,278,352 Withholding tax (118,775) (346,939) (42,590) (257,661) Accounts receivable-Revenue Department 5,005,861 (31,024,429) 4,833,768 (32,428,609) Other receivables 11,316,234 33,641,470 10,710,395 26,975,580 Other current assets (9,016,278) (6,599,694) (9,241,496) (7,073,932) PADAENG INDUSTRY PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, UNAUDITED CONSOLIDATED THE COMPANY ONLY 1999 1998 1999 1998 Baht Baht Baht Baht Operating liabilities increase (decrease) Trade accounts and notes payable 76,583,456 103,314,072 77,673,448 144,009,186 Accrued interest expenses 1,350,016 7,517,624 (5,858,761) (70,899,935) Accrued electricity expenses (6,921,504) 55,942,816 (6,967,092) 54,595,429 Forward contract payable (67,326,657) - (67,326,657) - Provision for guarantee of a subsidiary (26,742,000) - (70,323,000) - Other current liabilities (32,200,937) (673,532,734) (20,956,822) (568,780,150) Net cash provided by (used in) operating activities 413,344,177 949,092,745 314,167,451 669,384,981 CASH FLOWS FROM INVESTING ACTIVITIES Investment in related companies and other companies (increase) decrease 2,509,668 - 2,509,668 - Loans to related companies (increase) decrease - - - (62,119,316) Cash paid for purchase of property, plant and equipment (45,637,246) (58,850,062) (45,774,675) (61,760,007) Cash received from proceeds on sales of property, plant and equipment 592,775 3,151,834 373,307 2,439,833 Other assets (increase) decrease (51,589,382) (99,217,973) (50,356,815) (14,651,322) Net cash provided by (used in) investing activities (94,124,185) (154,916,201) (93,248,515) (136,090,812) CASH FLOWS FROM FINANCING ACTIVITIES Bank overdrafts and loans from financial institutions increase (decrease) 228,437,916 (173,683,571) 250,690,279 (10,335,257) Short-term loans and advances from related companies 12,032,009 11,570,020 7,900,000 6,600,000 Short-term loans and advance from directors and employees (10,000,000) (334,133) - (334,133) Long-term loans increase (decrease) (345,669,046) (347,212,133) (275,785,324) (295,083,613) Net cash provided by (used in) financing activities (115,199,121) (509,659,817) (17,195,045) (299,153,003) Effects from exchange rate in cash and cash equivalents increase (decrease) 2,716,787 8,485,405 2,693,482 8,485,405 Net increase in cash and cash equivalents 206,737,658 293,002,132 206,417,373 242,626,571 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 September 30 372,109,320 587,321,783 310,312,792 528,692,504 See notes to the interim financial statements The interim financial statements have been subjected to a review