INANCIAL STATEMENTS QUARTER 1/2543

Inventories consisted of : In Thousand Baht As at March As at December 31, 2000 31, 1999 Finished goods 23,291 19,900 Work in process 17,838 19,212 Raw materials 27,126 35,543 Supplies 12,246 13,549 Good intransit 2,462 - Total 82,963 88,204 Less Allowance for devalue of inventories (2,633) (2,633) Inventories, net 80,330 85,571 5. LONG-TERM INVESTMENTS Long- term investments consisted of : In Thousand Baht As at March As at December Type of Business 31, 2000 31, 1999 Thantawan Marketing Co.,Ltd. Holding company 150 150 First Bangkok City Bank Public Company Limited Banking - - Total General investment in equity securities 150 150 Negotiable certificate of deposit - - Total long-term investments 150 150 At March 31, 2000 and December 31, 1999, the Company had investments in equity security at cost of Baht 96,512.50 issued by the ailing financial institutions that have been supervisory controlled by the Bank of Thailand and ordered to write down capital which the Company has adjusted the related loss for diminution in value of Baht 96,444.25. At March 31, 2000 and December 31, 1999, investment in note receivable - financial institution in the amount of Baht 8,090,592.64 represent note receivable issued by the financial institution which has closed its business as its rehabilitation plan was not approved by the Financial Sector Restructuring Authority. In 1998 the Company exchanged the note to be the negotiable certificate of deposit (NCD) issued by Krung Thai Bank according to "Project of Krung Thai Bank in Accepting Exchange of Notes issued by the 42 Finance Companies". The maturity date is on December 12, 2000. Interest is receivable annually at the floating rate as announced by Krung Thai Bank. As at March 31, 2000 and December 31, 1999, the said NCD is pledged as collateral for loans granted from a bank and as at March 31, 2000, the Company presented the said NCD including in "Deposits with financial institutions" under "Short-term investments" in the balance sheets. 6. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of : In Thousand Baht Balance per Additions Deduction Balance per Method of Estimated Book book as at book as at depreciation useful life Value at Dec 31'99 Mar. 31'00 (Years) March. 31'00 At Cost Land and improvements 16,198 - - 16,198 Straight-line 5-20 12,772 Buildings and improvements 47,962 - - 47,962 Straight-line 5-20 20,700 Machinery and equipment 183,570 6,569 - 190,139 Straight-line 5-10 75,204 Tools and equipment 12,499 468 - 12,967 Straight-line 5 3,496 Office furniture, fixtures and equipment 6,317 19 - 6,336 Straight-line 5 766 Vehicles 15,420 95 (363) 15,152 Straight-line 5 3,757 Construction in progress and Machinery under installation 12,728 1,865 (6,575) 8,018 8,018 Total 294,694 9,016 (6,938) 296,772 Less Accumulated depreciation (167,839) (4,583) 363 (172,059) Property, plant and equipment, net 126,855 124,713 124,713 7. LAND AND ADVANCE PAYMENTS FOR ASSETS ACQUISITION WITH A RELATED COMPANY On December 29, 1997, the Company had entered into a to buy and to sell the land with building agreement with a related company at a price of Baht 41 million. The Company paid 50% of the price in amount of Baht 20.5 million on date of signing of the agreement. Subsequently, at the extr-aordinary shareholders' meetings held on January 22, 1998 and June 30, 1998, the shareholders did not approve to purchase the said land with building. Therefore the Company has notified for cancellation of the to buy and to sell agreement and refund the advance payment of Baht 20.5 million as its letter dated February 12, 1998. At present the advance payment could not been refunded. Addition, since 1994 the Company has utilized the 4 land plots of the said related company without lease agreement which the Company has a portion of building and land improvement located on certain land plots. Subsequently in 1998, the related company charged the Company for retroactive rental fees of Baht 24.1 million. The Company was negotiating with the related company. On November 25, 1999, the Board of Directors passed the resolution for entering into the memorandum with the said related company which are summarized as follows: (1) The Company commits to pay the compensation fee totalling fo Baht 6.5 million for land plots utilized since 1994 on November 29, 1999. (The Company recorded the compensation fee as expenses in the statements of income for the year ended December 31, 1999.) (2) The Company commits to enter into lease agreements covering land with building and 4 land plots at the rate of Baht 120 per square meter per month (totalling Baht 444,000 per month) and at the rate of Baht 50 per square wah per month (totalling Baht 252,100 per month), respectively. The period of the lease agreements is January 1, 2000 to December 31, 2000. (The Company has entered into lease agreements with the related company on January 4, 2000.) (3) The related company commits that it will not sell or lease the land with building and a land plot to others, except for to the Company for a period of 3 years from the date of agreement and also to stand the selling price of these assets at Baht 41.0 million for such period. In exchange, the related company will keep the above advance payment for asset acquisition of Baht 20.5 million during the period. On February 1, 2000, the Board of Directors passed the resolution of approval on purchasing of land with building and 4 land plots (as discussed in (2) above) from the said related company at the amount of Baht 85.0 million. The payment schedule had been assigned power to Managing Director as negotiation on condition of payment schedule with the related company. This resolution shall be presented further to the extraordinary meeting of shareholders. At the extra-ordinary shareholders' meeting held on February 28, 2000, the shareholders did not approve for transactions with a related company on the payment of compensation to the use of land, the entering into lease agreements covering land with building and 4 land plots, the keeping of advance payment on the purchase of land with building as stipulated in the agreement dated December 29, 1997, and the purchase of land with building and 4 land plots at the amount of Baht 85 million. However, at the extra-ordinary shareholders' meeting held on March 30, 2000, the shareholders had already approved the above related transactions and on March 31, 2000, the Company had entered into a to buy and to sell the land and building agreement and land totalling 8 title deeds with Sun Enterprise Company Limited at the amount of Baht 85 million and the Company committed to pay as follows :- (1) Payment by advance payment of Baht 20.5 million which had been paid under to buy and to sell land with building dated December 29, 1997. (2) Payment of Baht 34.5 million on the date of transferred registration. (The Company had entered the buy and sell agreement and registered the transference on April 4, 2000) (3) Payment the outstanding of Baht 30 million by the issue 6-month promissory note since the date of transferred registration. 8. DEPOSIT FOR MACHINE ACQUISITION The Company has entered into a machine acquisition agreement with a local company totalling Baht 61.75 million (exclusive VAT) on March 5, 1999. As at September 30, 1999, the company has paid 30% of the price in the amount of Baht 18.53 million (exclusive VAT), which was shown under "Other Assets" in the balance sheets. Under the term of the agreement, the seller shall deliver some machine which is not less than 30% of total value of machine within June 16, 1999. Consequently, the Company approved to delay the delivery totalling 2 times by the seller will deliver within September 16, 1999 and December 20, 1999, respectively, because the seller informed that it is abnormal after assembly of machine. Therefore the seller can not deliver in the present. The Company must pay 50% of the price in the amount of Baht 30.9 million when delivery completed and 20% of the price in the amount of Baht 12.4 million within 30 days after the date of installation and completed test-run of the machine. While the seller cannot deliver the machine, it should pay back the deposit to the company. Afterwards, on December 16, 1999, the Company and seller agreed to cancell the machine acquisition agreement because the seller cannot assemble the specified and qualified machine and the seller agreed to pay back the deposit of Baht 18.53 million and penalty fee of Baht 0.35 million on February 4, 2000. On January 7, 2000, the Company has entered into new machine acquisition agreement for new group of machine as specified in the agreement with the above company totalling Baht 19.18 million (exclusive VAT). The Company agreed to pay deposits of 18.53 million (exclusive VAT) on the date of agreement and the outstanding amount of Baht 0.65 million (exclusive VAT) will be paid within 30 days after the date of installation and completed test-run of the machine. The seller agreed to deliver at least 1 of 3 of total machine value within March 31, 2000 and June 30, 2000. The remain machine is delivered within September 29, 2000. In this case, the Company paid deposit for new agreemen