NSOLIDATED FINANCIAL STATEMENTS Q2/2000

Decrease in loan during period - - Ending balance carried forward 5,000 5,000 Total 5,000 5,000 Total short-term loans to related parties net 11,671 11,671 1999 Consolidated Company's Separate Policy of interest rate on loans charging Balance Sheet Balance Sheet Consolidated Company's separate (Thousand Baht) (Thousand Baht) Balance Sheet Balance Sheet Joint Ventures Philipp Holzmann (Thai)/ U.T.M. Engineering/ Sino-Thai Joint Venture 15% 15% Beginning balance - - Increase in loan during period 15,346 15,346 Decrease in loan during period - - Ending balance carried forward 15,346 15,346 The Joint Venture of Tomen Enterprise (Bangkok) Limited/Sino-Thai Engineering and Construction Public Company Limited/ Totems Company Limited 11% 11% Beginning balance 7,837 7,837 Increase in loan during period - - Decrease in loan during period (1,166) (1,166) Ending balance carried forward 6,671 6,671 Sino-Thai Joint Venture Beginning balance - - Increase in loan during period - 2,542 Decrease in loan during period - - Ending balance carried forward - 2,542 Total 22,017 24,559 1999 Consolidated Company's Separate Policy of interest rate on loans charging Balance Sheet Balance Sheet Consolidated Company's separate (Thousand Baht) (Thousand Baht) Balance Sheet Balance Sheet Subsidiary Sino-Thai Construction Services Company Limited - 7.3941-9% Beginning balance - 194,506 Increase in loan during period - - Decrease in loan during period - (35,595) Less Allowance for doubtful accounts - (158,911) Ending balance carried forward - - Associated company MMR Asia Company Limited 15-17% 17% Beginning balance 20,364 14,864 Increase in loan during period - - Decrease in loan during period (3,252) (3,252) Less Allowance for doubtful accounts (17,112) (11,612) Ending balance carried forward - - Thai Maintenance Contracting Company Limited 10% 10% Beginning balance 13,000 13,000 Increase in loan during period - - Decrease in loan during period (8,000) (8,000) Ending balance carried forward 5,000 5,000 Total 5,000 5,000 Other Related Parties Beginning balance 77,297 - Increase in loan during period - - Decrease in loan during period - - Less Allowance for doubtful accounts (77,297) - Ending balance carried forward - - Total short-term loans to related parties - net 27,017 29,559 Investments and loans Investments in related parties as at June 30, 2000 (Amount in Thousand Baht) Fully Paid Company's separate Shares Capital Portion of Consolidated balance sheets Balance Sheets Company's Name Type of Business (Thousand Baht) Interest Cost Method Equity Method Cost Method Equity Method Joint Ventures Philipp Holzmann (Thai)/ U.T.M. Engineering/ Sino-Thai Joint Venture - 100% - 14,861 - 14,861 Zueblin-W&F-Stecon Joint Venture - 33% - - - - The Joint Venture of Tomen Enterprise (Bangkok) Limited/Sino-Thai Engineering and Construction Public Company Limited/ Totems Company Limited - 33% - - - - Sino-Thai Joint Venture - 100% - - - - Total investment in joint ventures - 14,861 - - Related Parties Subsidiaries Sino-Thai Construction Rental, dealer Services Company in construction Limited equipment and heavy machinery 30,000 99.99% - - 29,999 - Sino-Thai Resources Development Public Company Limited Mining 130,000 51.16% - - 201,442 67,313 Total investments in subsidiaries - - 231,441 67,313 (Amount in Thousand Baht) Fully Paid Company's separate Shares Capital Portion of Consolidated balance sheets Balance Sheets Company's Name Type of Business (Thousand Baht) Interest Cost Method Equity Method Cost Method Equity Method Associated Companies HTR Corporation Limited Real estate 500,000 47.6% 329,990 195,547 329,990 195,547 DKK Sino-Thai Engineering Telecommunication Company Limited and transmission lines 8,000 35% 2,800 52,482 2,800 52,482 ACS Asia Company Limited Light steels fabrication 10,000 50% 5,000 8,986 5,000 8,986 Thai Maintenance Maintenance Contracting Company service for large Limited industrial plants 12,315 25.14% 2,340 8,319 2,340 8,319 340,130 265,334 340,130 265,334 Less Provision for declining in value of investment (8,986) (8,986) Total investments in associated companies 256,348 256,348 Total investments in related parties 256,348 323,661 Others Available for sale securities STP & I Public Steel fabrication, Company Limited Steel construction, Industrial boilers and pressure vessels Manufacturing 250,000 10% 75,750 - 75,750 - Nakornthai Stripmill Public Company Limited 8,600,000 1.85% 110,000 - 110,000 - Thanayong Public Company Limited 3,064,557 0.02% 10,033 - 10,033 - 195,783 - 195,783 - Less Provision for declining in value of (182,033) (182,033) Total available for sales securities 13,750 13,750 (Amount in Thousand Baht) Fully Paid Company's separate Shares Capital Portion of Consolidated balance sheets Balance Sheets Company's Name Type of Business (Thousand Baht) Interest ost Method Equity Method Cost Method Equity Method General Securities Abico Land Company Limited 200,000 15% 30,000 - 30,000 - Peroxy Thai Company Limited 793,000 2.73% 21,650 - 21,650 - Others 87,832 - 87,732 - 139,482 - 139,382 - Less Provision for declining in value of general securities (110,353) - (110,353) - Total investments in general securities 29,129 - 29,029 - Total investments in others 42,879 - 42,779 - Investments in related parties as at December 31, 1999 (Amount in Thousand Baht) Fully Paid Company's separate Shares Capital Portion of Consolidated balance sheets Balance Sheets Company's Name Type of Business (Thousand Baht) Interest Cost Method Equity Method Cost Method Equity Method Joint Ventures Philipp Holzmann (Thai)/ U.T.M. Engineering/ Sino-Thai Joint Venture - 100% - 14,861 - 14,861 Zueblin-W&F-Stecon Joint Venture - 33% - - - - The Joint Venture of Tomen Enterprise (Bangkok) Limited/Sino-Thai Engineering and Construction Public Company Limited/ Totems Company Limited - 33% - 18 - 18 Sino-Thai Joint Venture - - - - - - - Total investment in joint ventures - 14,879 - 14,879 (Amount in Thousand Baht) Fully Paid Company's separate Shares Capital Portion of Consolidated balance sheets Balance Sheets Company's Name Type of Business (Thousand Baht) Interest Cost Method Equity Method Cost Method Equity Method Related Parties Subsidiaries Sino-Thai Construction Rental, dealer Services Company in construction Limited equipment and heavy machinery 30,000 99.99% - - 29,999 - Sino-Thai Resources Development Public Company Limited Mining 130,000 51.16% - - 201,442 67,215 Total investments in subsidiaries - - 231,441 67,215 Associated Companies HTR Corporation Limited Real estate 500,000 47.6% 329,990 202,555 329,990 202,555 DKK Sino-Thai Telecommunications Engineering and transmission Company Limited lines 8,000 35% 2,800 37,152 2,800 37,152 ACS Asia Company Light steels Limited fabrication 10,000 50% 5,000 8,986 5,000 8,986 Thai Maintenance Maintenance Contracting service for large Company Limited industrial plants 12,315 25.14% 2,340 5,836 2,340 5,836 340,130 254,529 340,130 254,529 Less Provision for declining in value of investment (8,986) (8,986) Total investments in associated companies 245,543 245,543 Total investments in related parties 245,543 312,758 Others Available for sale securities STP & I Public Steel fabrication, Company Limited steel construction, industrial boilers and pressure vessels manufacturing 250,000 10% 75,750 - 75,750 - Nakornthai Stripmill Public Company Limited 8,600,000 1.85% 110,000 - 110,000 - Thanayong Public Company Limited 3,064,557 0.02% 10,033 - 10,033 - 195,783 195,783 Less Provision for declining in value of Available for sale securities (154,796) (154,796) Total available for sales securities 40,987 40,987 (Amount in Thousand Baht) Fully Paid Company's separate Shares Capital Portion of Consolidated balance sheets Balance Sheets Company's Name Type of Business (Thousand Baht) Interes Cost Method quity Method Cost Method Equity Method General Securities Abico Land Company Limited 200,000 15% 30,000 - 30,000 - Nithipat Leasing Company Limite 15% 129,568 - - - 800,000 11.25% - - 97,168 - Peroxy Thai Company Limited 793,000 2.73% 21,650 - 21,650 - The Preferred Shares Mutual fund - Subordinated Debentures of Thai Farmer Bank Public Company Limited Fund 40,000,000 0.25% 100,000 - 100,000 - Government Bond - - 23,888 - 23,888 - Others 92,531 - 87,732 - Total 397,637 - 360,438 - Less Provision for declining in value of general securities (156,595) - (131,667) - Total investments in general securities 241,042 - 228,771 - Total investments in other related parties 282,029 - 269,758 - Loans to related parties 2000 Consolidated Company's Separate Policy of interest rate on loans charging Balance Sheet Balance Sheet Consolidated Company's Separate (Thousand Baht) (Thousand Baht) Balance sheet Balance sheet Other Related Parties Others 13-18% 13-18% Beginning balance 4,240 4,240 Increase in loan during period - - Decrease in loan during period - - Less Allowance for doubtful accounts (90) (90) Ending balance carried forward 4,150 4,150 1999 Consolidated Company's Separate Policy of interest rate on loans charging Balance Sheet Balance Sheet Consolidated Company's Separate (Thousand Baht) (Thousand Baht) Balance sheet Balance sheet Other Related Parties Others 13-18% 13-18% Beginning balance 4,240 4,240 Increase in loan during period - - Decrease in loan during period - - Less Allowance for doubtful accounts (90) (90) Ending balance carried forward 4,150 4,150 As at June 30, 2000 and December 31, 1999, the Company recognized loss on investments in subsidiaries and joint ventures exceeding carrying amount by equity method in the amount of Baht 36.85 million and Baht 35.87 million, respectively, in the consolidated financial statements, and Baht 266.73 million and Baht 203.81 million, respectively, in the separate financial statements which were shown as other liabilities. The Company recorded investments in associated companies and joint ventures by using the equity method in the financial statements for the periods ended June 30, 2000 and December 31, 1999 based on the financial information prepared by the management which had not been audited by the auditors. 2.2 Cash and cash equipment Cash and cash equivalents as at June 30, 2000 and 1999 are summarized as follows: (Amount in Thousand Baht) Consolidated Company's Separate Statements of Cash Flows Statements of Cash Flows 2000 1999 2000 1999 Cash in hand and at banks 1,056,636 914,736 1,043,221 893,208 Add Short-term investment-fixed deposit- three months 274 - - - Less Cash at bank pledged as collaterals (937,514) (637,878) (937,291) (637,011) Cash and cash equivalents - net 119,396 276,858 105,930 256,197 2.3 Accounts receivable Accounts receivable - others as at June 30, 2000 and December 31, 1999 are analyzed by aging as follows: (Amount in Thousand Baht) Consolidated Balance Sheets Company's Separate Balance Sheets 2000 1999 2000 1999 Overdue 1 month to 4 months 75,520 321,921 63,681 308,425 Over 4 months to 12 months 8,917 57,877 5,728 54,575 Over 12 months 383,995 359,891 343,376 327,807 Total 468,432 739,689 412,785 690,807 Allowance for doubtful account 330,424 334,201 314,096 317,503 The overdue accounts receivable, as mention above, the Company and subsidiaries are following up on the collection of these debts. The Company's management has provided adequately for allowance for doubtful accounts in accordance with accounting policy. 2.4 Long-term loans The Company obtained the US$ 80,000,000 syndicate loan from 19 foreign banks and financial institutions and the US$ 5,000,000 loan from a foreign bank which bear interest at the rate of the SIBOR. The principals are repayable within 3 years from the drawdown date and interest payable semi-annually. The lenders may request the Company to repay the loans within 2 years from the drawdown date. Loan covenants include maintenance of important financial ratios to the level as set out in the agreement. As at June 30, 2000 and December 31, 1999, the Company has not performed in accordance with loan agreements concerning loan and interest payment in the amount of US$ 93.5 million and financial ratio. The default entitles the lenders to accelerate the maturity of all amount outstanding immediately due and payable. Therefore, the loans are shown under current liabilities in total amount. See Note 1.4 to the financial statement. In 1997, the subsidiary company has entered into a loan agreement with a domestic commercial bank for Baht 117 million, repayable quaterly in twenty-four installments within 7 years. The first repayment was repaid at the end of the one year and 3 months from loan agreement's date. The monthly interest is payable as from the first month of drawdown. (more)