NUAL CONSOLIDATED FINANCIAL STATEMENTS

Baht Baht Baht Baht Policy of interest rate on loans charging Consolidated Company's Separate Balance Sheets Balance Sheets Joint Ventures Philipp Holzmann (Thai)/ U.T.M. Engineering/ Sino-Thai Joint Venture 15,345,517.33 - 15,345,517.33 - 15% 15% The Joint Venture of Tomen Enterprise (Bangkok) Limited / Sino-Thai Engineering and Construction Public Company Limited / Totems Company Limited 6,671,120.78 - 6,671,120.78 - 11% Sino-Thai Joint Venture 2,542,000.00 - 2,542,000.00 - 9.25% Total 24,558,638.11 - 24,558,638.11 - Subsidiary Sino-Thai Construction Services Company Limited - - 158,911,455.72 170,670,400.00 - 7.3941 - 9% Associated company MMR Asia Company Limited 17,111,792.69 20,363,792.69 11,611,792.69 14,863,792.69 15 - 17% 17% Thai Maintenance Contracting Company Limited 5,000,000.00 13,000,000.00 5,000,000.00 13,000,000.00 18% 10 - 12% Total 22,111,792.69 33,363,792.69 16,611,792.69 27,863,792.69 Other Related Parties 77,297,494.17 - - - Total 123,967,924.97 33,363,792.69 200,081,886.52 198,534,192.69 Less Allowance for doubtful accounts (94,409,286.86) - (170,523,248.41) - Total short-term loans to related parties - net 29,558,638.11 33,363,792.69 29,558,638.11 198,534,192.69 2.4 Investments and loans 2.4.1 Investments in related parties Company's separate balance sheets as at December 31, Fully Paid Portion of Company's Name Type of Business Country Relation Shares Capital Interest Cost Method Equity Method Carrying Amount Dividend 1999 1998 1999 1998 1999 1998 1999 1998 1999 1998 1999 1998 Baht Baht Baht Baht Baht Baht Baht Baht Baht Baht Joint Ventures Philipp Holzmann (Thai)/ U.T.M. Engineering/ Sino-Thai Joint Venture Thailand Joint venture - - 100 100 - - 14,861,271.94 - 14,861,271.94 - - - Zueblin-W&F-Stecon Joint Venture Thailand Joint venture - - 33 33 - - - - - - - - The Joint Venture of Tomen Enterprise (Bangkok) Limited/Sino-Thai Engineering and Construction Public Company Limited/ Totems Company Limited Thailand Joint venture - - 33 33 - - 17,908.19 - 17,908.19 - - - Sino-Thai Joint Venture Thailand Joint Venture - - 100 - - - - - - - - - Total investment in joint ventures - - 14,879,180.13 - 14,879,180.13 - - - Company's separate balance sheets Fully Paid Portion of Company's Name Type of Business Country Relation Shares Capital Interest Cost Method Equity Method Carrying Amount Dividend 1999 1998 1999 1998 1999 1998 1999 1998 1999 1998 1999 1998 Baht Baht Baht Baht Baht Baht Baht Baht Baht Baht Related Parties Subsidiaries Sino-Thai Rental, dealer Its sharing Construction in construction and Services Company equipment and directorships Limited heavy in the machinery Thailand relate 30,000,000.00 30,000,000.00 99.99 99.99 29,999,300.00 29,999,300.00 - 39,436,036.44 - 39,436,036.44 - - - Sino-Thai Resources Its sharing Development Public and directorships in the Company Limited Mining Thailand relate 130,000,000.00 130,000,000.00 51.16 51.16 201,441,563.75 201,441,563.75 67,215,221.56 53,018,857.68 67,215,221.56 42,216,773.06 - - Total investments in subsidiaries 231,440,863.75 231,440,863.75 67,215,221.56 92,454,894.12 67,215,221.56 81,652,809.50 - - Associated Companies HTR Corporation Limited Real estate Thailand Shareholders 500,000,000.00 500,000,000.00 47.6 47.6 329,990,005.00 329,990,005.00 202,554,811.66 266,705,743.83 202,554,811.66 266,705,743.83 - - DKK Sino-Thai Telecommunications Engineering and transmission Company Limited lines Thailand Shareholders 8,000,000.00 8,000,000.00 35 35 2,799,600.00 2,799,600.00 37,152,298.16 30,172,257.05 37,152,298.16 30,172,257.05 699,000.00 2,799,600.00 ACS Asia Limited Light steels fabrication Thailand Shareholders 10,000,000.00 10,000,000.00 50 50 5,000,000.00 5,000,000.00 8,985,576.90 8,985,576.90 8,985,576.90 8,985,576.90 - - ACS Asia (1996) Manufacture and sale Company Limited cable support system and sparepart Thailand Shareholders 15,000,000.00 15,000,000.00 50 50 - 7,500,000.00 - 16,833,902.61 - 16,833,902.61 - - Thai Maintenance Maintenance Contracting service for Company Limited large industrial plants Thailand Shareholders 12,315,000.00 12,315,000.00 25.14 25.14 2,339,810.00 2,339,810.00 5,836,091.75 7,346,734.34 5,836,091.75 7,346,734.34 - - 340,129,415.00 347,629,415.00 254,528,778.47 330,044,214.73 254,528,778.47 330,044,214.73 699,000.00 2,799,600.0 0 Less Provision for declining in value of investment (8,985,576.90) (8,985,576.90) Total investments in associated companies 245,543,201.57 321,058,637.83 Total investments in related parties 312,758,423.13 402,711,447.33 Company's separate balance sheets Fully Paid Portion of Company's Name Type of BusinessCountry Relation Shares Capital Interest Cost Method Equity Method Carrying Amount Dividend 1999 1998 1999 1998 1999 1998 1999 1998 1999 1998 1999 1998 Baht Baht Baht Baht Baht Baht Baht Baht Baht Baht Others related parties Available for sale securities STP & I Public Steel fabrication, Company Limited steel construction, industrial boilers and pressure vessels Manufacturing Thailand Shareholders 250,000,000.00 250,000,000.00 10 10 75,750,054.30 75,750,054.30 - - 75,750,054.30 75,750,054.30 - - Nakornthai Stripmill Public Company Limited Thailand Shareholders 8,600,000,000.00 8,600,000,000.00 0.80 1.85 110,000,000.00 254,000,000.00 - - 110,000,000.00 254,000,000.00 - - Thanayong Public Company Limited Thailand Shareholders 3,064,557,000.00 3,064,557,000.00 0.02 0.02 10,033,133.00 10,033,133.00 - - 10,033,133.00 10,033,133.00 - - 195,783,187.30 339,783,187.30 - - Less Provision for declining in value of available for sale securities (154,790,213.30)(254,591,849.30) - - Total available for sales securities 40,992,974.00 85,191,338.00 - - Company's separate balance sheets Fully Paid Portion of Company's Name Type of Business Country Relation Shares Capital Interest Cost Method Equity Method Carrying Amount Dividend 1999 1998 1999 1998 1999 1998 1999 1998 1999 1998 1999 1998 Baht Baht Baht Baht Baht Baht Baht Baht Baht Baht General Securities Abico Land Company Limited Thailand Shareholders 200,000,000.00 200,000,000.00 15 15 30,000,000.00 30,000,000.00 - - 30,000,000.00 30,000,000.00 - - Nithipat Leasing Company Limited Thailand Shareholders 800,000,000.00 800,000,000.00 11.25 11.25 97,167,600.00 97,167,600.00 - - 97,167,600.00 97,167,600.00 - - Peroxy Thai Company Limited Thailand Shareholders 793,000,000.00 793,000,000.00 2.73 2.73 21,650,000.00 21,650,000.00 - - 21,650,000.00 21,650,000.00 - - The Preferred Shares mutual fund - subordinated debentures of Thai Farmer Bank Public Company Limited Fund Thailand Bondholders 40,000,000,000.00 - 0.25 - 100,000,000.00 100,000,000.00 - - 100,000,000.00 - - - Government Bond - - - - 23,888,000.00 - - - 23,888,000.00 - - - Others 87,731,665.78 87,731,665.78 - - 87,731,665.78 87,731,665.78 - - Total 360,437,265.78 336,549,265.78 - - 360,437,265.78 236,549,265.78 - - Less Provision for declining in value of general securities - - (131,666,749.89) (49,906,669.89) - - Total investments in general securities - - 228,770,515.89 186,642,595.89 - - Total investments in other related parties - - 269,757,469.89 271,833,933.89 - - Consolidated balance sheets as at December 31, Fully Paid Portion of Company's Name Type of Business Country Relation Shares Capital Interest Cost Method Equity Method Carrying Amount Dividend 1999 1998 1999 1998 1999 1998 1999 1998 1999 1998 1999 1998 Baht Baht Baht Baht Baht Baht Baht Baht Baht Baht Joint Ventures Philipp Holzmann (Thai)/ U.T.M. Engineering/ Sino-Thai Joint Venture Thailand Joint Venture - - 100 100 - - 14,861,271.94 - 14,861,271.94 - - - Zueblin-W&F-Stecon Joint Venture Thailand Joint Venture - - 33 33 - - - - - - - - The Joint Venture of Tomen Enterprise (Bangkok) Limited/ Sino-Thai Engineering and Construction Public Company Limited/ Totems Company Limited Thailand Joint Venture - - 33 33 - - 17,908.19 - 17,908.19 - - - Sino-Thai Joint Venture Thailand Joint Venture - - 100 - - - - - - - - - Total investment in joint ventures - - 14,879,180.13 - 14,879,180.13 - - - Consolidated balance sheets Fully Paid Portion of Company's Name Type of BusinessCountry Relation Shares Capital Interest Cost Method Equity Method Carrying Amount Dividend 1999 1998 1999 1998 1999 1998 1999 1998 1999 1998 1999 1998 Baht Baht Baht Baht Baht Baht Baht Baht Baht Baht Related Parties Associated Companies HTR Corporation Limited Real estate Thailand Shareholders 500,000,000.00 500,000,000.00 47.6 47.6 329,990,005.00 329,990,005.00 202,554,811.66 266,705,743.83 202,554,811.66 266,705,743.80 - - DKK Sino-Thai Telecommunications Engineering and transmission Company Limited lines Thailand Shareholders 8,000,000.00 8,000,000.00 35 35 2,799,600.00 2,799,600.00 37,152,298.16 30,172,257.05 37,152,298.16 30,172,257.05 699,000.00 2,799,600.00 ACS Asia Limited Light steel fabrication Thailand Shareholders 10,000,000.00 10,000,000.00 50 50 5,000,000.00 5,000,000.00 8,985,576.90 8,985,576.90 8,985,576.90 8,985,576.90 - - ACS Asia (1996) Manufacturing Company and Sale Limited cable support system and spare part Thailand Shareholders 15,000,000.00 15,000,000.00 50 50 - 7,500,000.00 - 16,833,902.61 - 16,833,902.61 - - Thai Maintenance Maintenance Contracting service for Company large Limited industrial plants Thailand Shareholders 12,315,000.00 12,315,000.00 25.14 25.14 2,339,810.00 2,339,810.00 5,836,091.75 7,346,734.34 5,836,091.75 7,346,734.34 - - 340,129,415.00 347,629,415.00 254,528,778.47 330,044,214.73 254,528,778.47 330,044,214.70 699,000.00 2,799,600.0 0 Less Provision for declining in value of investment (8,985,576.90) (8,985,576.90) Total investments in associated companies 245,543,201.57 321,058,637.80 Total investments in related parties 245,543,201.57 321,058,637.80 Consolidated balance sheets Fully Paid Portion of Company's Name Type of Business Country Relation Shares Capital Interest Cost Method Equity Method Carrying Amount Dividend 1999 1998 1999 1998 1999 1998 1999 1998 1999 1998 1999 1998 Baht Baht Baht Baht Baht Baht Baht Baht Baht Baht Others Available for sale securities STP & I Public Steel fabrication, Company Limited steel construction, industrial boilers and pressure vessels manufacturing Thailand Shareholders 250,000,000.00 250,000,000.00 10 10 75,750,054.30 75,750,054.30 - - 75,750,054.30 75,750,054.30 - - Nakornthai Stripmill Public Company Limited Thailand Shareholders 8,600,000,000.00 8,600,000,000.00 0.80 1.85 110,000,000.00 254,000,000.00 - - 110,000,000.00 254,000,000.00 - - Thanayong Public Company Limited Thailand Shareholders 3,064,557,000.00 3,064,557,000.00 0.02 0.02 10,033,133.00 10,033,133.00 - - 10,033,133.00 10,033,133.00 - - 195,783,187.30 339,783,187.30 Less Provision for declining in value of (154,796,233.30) (254,591,849.30) available for sale securities 40,986,954.00 85,191,338.00 Total available for sales securities General Securities Abico Land Company Limited Thailand Shareholders 200,000,000.00 200,000,000.00 15 15 30,000,000.00 30,000,000.00 - - 30,000,000.00 30,000,000.00 - - Nithipat Leasing Company Limited Thailand Shareholders 800,000,000.00 800,000,000.00 15 15 129,567,600.00 129,567,600.00 - - 129,567,600.00 129,567,600.00 - - Consolidated balance sheets Fully Paid Portion of Company's Name Type of Business Country Relation Shares Capital Interest Cost Method Equity Method Carrying Amount Dividend 1999 1998 1999 1998 1999 1998 1999 1998 1999 1998 1999 1998 Baht Baht Baht Baht Baht Baht Baht Baht Baht Baht Peroxy Thai Company Thailand Shareholders 793,000,000.00 793,000,000.00 2.73 2.73 21,650,000.00 21,650,000.00 - - 21,650,000.00 21,650,000.00 - - Limited The Preferred Shares mutual fund - subordinated debentures of Thai Farmer Bank Public Company Limited Fund Thailand Bondholders 40,000,000,000.00 - 0.25 - 100,000,000.00 - - - 100,000,000.00 - - - Government Bond - - - - 23,888,000.00 - - - 23,888,000.00 - - - Others 34,031,665.78 34,031,665.78 - - 92,531,665.78 92,531,665.78 - - 339,137,265.78 215,249,265.78 - - 397,637,265.78 273,749,265.78 - - Less Provision for declining in value of general securities - - (156,594,749.89) (52,906,669.89) - - Total investments in general securities - - 241,042,515.89 220,842,595.89 - - Total investment in other related parties - - 282,029,469.89 306,033,933.89 - - 2.4.2 Loans to related parties Consolidated Balance Sheets Company's Separate Balance Sheets 1999 1998 1999 1998 Policy of interest rate on loans charging Baht Baht Baht Baht Consolidated Company's Separate Balance Sheets Balance Sheets Joint Ventures Philipp Holzmann (Thai)/ U.T.M. Engineering/Sino-Thai Joint Venture - - - - 15% 15% The Joint Venture of Tomen Enterprise (Bangkok) Limited / Sino-Thai Engineering and Construction Public Company Limited / Totems Company Limited - 7,837,461.49 - 7,837,461.49 15% 15% - 7,837,461.49 - 7,837,461.49 Subsidiary SinoThai Construction Services Company Limited - - - 23,835,268.99 - 7.2774%-24% Associated Company MMR Asia Company Limited - - - - 17% 17.% ACS Asia (1996) Company Limited - 4,293,625.00 - 4,293,625.00 14.75% 14.75% - 4,293,625.00 - 4,293,625.00 Other Related Parties Others 4,240,000.00 4,240,000.00 4,240,000.00 4,240,000.00 13%-18% 13%-18% Less Allowance for doubtful accounts (90,000.00) (90,000.00) (90,000.00) (90,000.00) 4,150,000.00 4,150,000.00 4,150,000.00 4,150,000.00 Total Loans 4,150,000.00 16,281,086.49 4,150,000.00 40,116,355.48 Total Investments and Loans 546,601,851.59 643,373,658.18 601,545,073.15 714,661,736.70 As at December 31, 1999 and 1998, the Company recognized loss on investments in subsidiaries and joint ventures exceeding carrying amount by equity method in the amount of Baht 38.87 million and Baht 74.57 million, respectively, in the consolidated financial statements, and Baht 203.81 million and Baht 74.57 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 years ended December 31, 1999 and 1998 based on the financial information prepared by the management, which had not been audited by the auditors. 2.5 The Company has significant transactions with its related parties for the year ended December 31, are as follows: Consolidated Financial Statements Company's Separate Financial Statements 1999 1998 1999 1998 Baht Baht Baht Baht Revenues from construction 47,591,031.00 - 47,591,031.00 - Revenues from services, rent and others - - 693,000.00 1,395,625.01 Interest income - - 935,838.64 9,016,523.70 Equipment purchase - - 711,487.60 1,692,925.00 Concrete service and others - - 773,352.00 2,308,300.00 NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICY Revenue Recognition Revenue from construction of the parent company is recognized on the basis of the percentage-of-completion method as estimated by the Company's engineers. Differences between income recognized on the basis of the percentage-of-completion method and billing income are recorded as accounts receivable. Subsidiary's revenue from sales is recognized when significant risk on ownership or rewards is transferred to the buyer. Service income is recognized on the basis of the percentage-of-completion method and invoices are (more)