INANCIAL STATEMENTS QUARTER3/2000

Less Allowance for doubtful accounts (2,732) (2,711) Trade accounts and notes receivable-net 89,508 99,387 As at September 30, 2000 and December 31, 1999 the company has overdued accounts receivable of and accounts, respectively which are aging as follows : In Thousand Baht As at September As at December 30, 2000 31, 1999 Over 3 months to 6 months 28 465 Over 6 months to 12 months 111 - Over 12 months 2,792 2,732 Total 2,931 3,197 4. INVENTORIES Inventories consisted of : In Thousand Baht As at September As at December 30, 2000 31, 1999 Finished goods 18,522 19,900 Work in process 17,235 19,212 Raw materials 23,711 35,543 Supplies 12,161 13,549 Goods in - transit 4,729 - Total 76,358 88,204 Less Allowance for devalue of inventories (2,633) (2,633) Inventories, net 73,725 85,571 5. LONG-TERM INVESTMENTS Long- term investments consisted of : In Thousand Baht As at September As at December Type of Business 30, 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 At September 30, 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 September 30, 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 September 30, 2000 and December 31, 1999, the said NCD is pledged as collateral for loans granted from a bank and as at September 30, 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 Sep. 30'00 (Years) Sep. 30'00 At Cost Land and improvements 16,198 74,165 (814) 89,549 Straight-line 5-20 86,112 Buildings and improvements 47,962 13,205 - 61,167 Straight-line 5-20 32,438 Machinery and equipment 183,570 9,322 (13) 192,879 Straight-line 5-10 71,278 Tools and equipment 12,499 965 (10) 13,454 Straight-line 5 3,357 Office furniture, fixtures and Equipment 6,317 174 - 6,491 Straight-line 5 735 Vehicles 15,420 4,045 (363) 19,102 Straight-line 5 7,026 Construction in progress and Machinery under installation 12,728 11,395 (8,457) 15,666 15,666 Total 294,694 113,271 (9,657) 398,308 Less Accumulated depreciation (167,839) (14,239) 382 (181,696) Property, plant and equipment, net 126,855 216,612 216,612 As at September 30, 2000 the company has committed to pay under a design and construction agreement of Baht 11.45 million. 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 extraordinary 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. 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 Sunflower 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. However, the Company paid this full amount on May 26, 2000 and received interest and bank charge discount totalling Baht 813,922.98. 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 cancel 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 agreement by the old deposit which the seller shall pay back since the cancellation of the former agreement. On March 15, 2000, the Company had notice to cancel the machine acquisition agreement. The Company had already received the refund on April 5, 2000. On May 15, 2000, the Company has entered into a machine acquisition agreement with a company to replace the old machine amounting to H.K.$ 8.7 million. As at September 30, 2000, the Company paid the deposit at the rate of 65% totalling H.K.S 5.66 million equivalent to Baht 28.88 million. Under the term of the agreement, the seller must delivery the completed test-run machine within 180 days since the date of the agreement. 9. CREDIT FACILITIES WITH FINANCIAL INSTITUTIONS As at September 30, 2000, the Company has overdraft lines of Baht 40 million and other credit facilities e.g. packing credit, letter of credit, and trust receipt and letter of guarantee totalling Baht 441 million and US$ 10 million. The almost overdraft lines are without collateral. 10. SEGMENT INFORMATION Thantawan Industry Public Company Limited manufactures plastic products which divided into three main products : straw products, HD.PE bag products and LD.PE bag products. Products purchased for sales are groups as others. The results of its operations for the three- month and nine-month periods ended September 30, 2000 and 1999 are summarized as follows : For the three-month periods ended September 30, 2000 and 1999 In Thousand Baht HD. PE bag LD.PE bag 2000 1999 Straw products products products Others Total Total Sales-export : 2000 31,689 47,165 89,464 2,656 170,974 - : 1999 26,054 48,858 83,374 2,586 160,872 Sales-local : 2000 8,594 3,630 999 14 13,237 : 1999 5,103 2,002 1,365 55 8,525 Total : 2000 40,283 50,795 90,463 2,670 184,211 - : 1999 31,157 50,860 84,739 2,641 169,397 Operating profit : 2000 8,975 6,881 16,653 416 32,925 : 1999 6,420 267 19,773 563 27,023 Other income 2,828 7,292 General corporate expense (18,192) (17,149) Interest expense - (237) Income tax (5,519) (5,329) Net income 12,042 11,600 For the nine-month periods ended September 30, 2000 and 1999 In Thousand Baht HD. PE bag LD.PE bag 2000 1999 Straw products products products Others Total Total Sales-export : 2000 101,696 133,312 271,582 7,673 514,263 : 1999 87,666 125,018 237,455 8,267 458,406 Sales-local : 2000 41,541 8,727 2,097 87 52,452 : 1999 19,447 4,224 2,613 226 26,510 Total : 2000 143,237 142,039 273,679 7,760 566,715 : 1999 107,113 129,242 240,068 8,493 484,916 Operating profit : 2000 29,513 17,571 42,950 1,224 91,258 : 1999 23,832 8,395 55,665 1,733 89,625 Other income 6,693 11,395 General corporate expense (54,172) (47,263) Interest expense (140) (306) Income tax (13,651) (15,856) Net income 29,988 37,595 As at September 30, 2000 and 1999, property, plant and equipment, net of accumulated depreciation are summarized as follows , , In Thousand Baht Straw products HD PE bag LD.PE bag 2000 1999 Products Products Total Total Assets used by products : 2000 14,378 48,561 119,329 182,268 : 1999 15,800 41,579 56,800 114,179 General assets used 34,344 13,617 Total property, plant and Equipment' net 216,612 127,796 11. APPROPRIATIONS OF EARNINGS On April 24, 2000 the Ordinary General Meeting of Shareholders No.1/2000 approved the proposed dividend payable from the net income of the year 1999 of Baht 1 per share on 8 million shares totalling Baht 8 million. On April 23, 1999, the Ordinary General Meeting of Shareholders No.1/1999 approved the proposed dividend payable from the net income of the year 1998 of Baht 1.75 per share on 8 million shares totalling Baht 14 million and the appropriation legal reserve for the year 1998 in the amount of Baht 2,344,267.61. 12. ASSETS PLEDGED AS COLLATERAL Fixed deposit in the amount of Baht 1 million and part of land and constructions were pledged as collateral for liabilities and commitments with commercial bank. The Company has requested to withdraw the land and constructions since December 1, 1999. NCD of financial institution in the amount of Baht 8.1 million was pledged as collateral for loan with a bank. 13. OTHERS a) Address and legal status The company has registered to be a limited public company under the Limited Public Company Act with the Ministry of Commerce on December 1, 1994 and its head office is located at 143-144, Moo 8, Soi Kangwal 2, Phetkasem Road, Omyai, Sampran, Nakornpratom ,Thailand. b) Nature the Company's operations The company's operations are produce and export plastic products. c) Name of parent company The parent company of the Company is Sunflower Company Limited. d) Number of employees As at September 30, 2000 the number of employees of the company is approximately 1,056 persons. e) Supplemental disclosures of expense information Supplemental disclosures of expense information for the three - month and nine - month periods ended September 30, 2000 and 1999 are as follows: In Thousand Baht For the three-month period, For the nine-month period ended September 30 ended September 30, 2000 1999 Depreciation 4,897 4,850 14,238 14,620 Amortization 866 1,199 1,492 3,391 Employee benefit costs 33,335 38,426 107,683 115,766