NSOLIDATED FINANCIAL STATEMENTS Q3/2000 - STECON

Consolidated Company's Separate Policy of interest rate on loans charging Balance Sheet Balance Sheet Consolidated Company's separate (Thousands Baht) (Thousands Baht) Balance Sheet Balance Sheet Associated companies MMR Asia Company Limited Beginning balance 17,050 11,612 15-17% 17% Increase in loan during period - - Decrease in loan during period - - Less Allowance for doubtful accounts (17,050) (11,612) Ending balance - - Thai Maintenance Contracting Company Limited Beginning balance 5,000 5,000 10% 10% Increase in loan during period - - Decrease in loan during period (5,000) (5,000) Ending balance - - Other related party Is Geo System Company Limited Beginning balance - - Increase in loan during period 78,567 78,567 Less Allowance for doubtful accounts (78,567) (78,567) Ending balance carried forward - - Total short-term loans to related parties net 6,671 6,671 As at December 31, 1999 1999 Consolidated Company's Separate Policy of interest rate on loans charging Balance Sheet Balance Sheet Consolidated Company's separate (Thousands Baht) (Thousands Baht) Balance Sheet Balance Sheet Joint Ventures Philipp Holzmann (Thai)/ U.T.M. Engineering/ Sino-Thai Joint Venture Beginning balance - - 15% 15% Increase in loan during period 15,346 15,346 Decrease in loan during period - - Ending balance 15,346 15,346 The Joint Venture of Tomen Enterprise (Bangkok) Limited/Sino-Thai Engineering and Construction Public Company Limited/ Totems Company Limited Beginning balance 7,837 7,837 11% 11% Increase in loan during period - - Decrease in loan during period (1,166) (1,166) Ending balance 6,671 6,671 1999 Consolidated Company's Separate Policy of interest rate on loans charging Balance Sheet Balance Sheet Consolidated Company's separate (Thousands Baht) (Thousands Baht) Balance Sheet Balance Sheet Sino-Thai Joint Venture Beginning balance - - - 9.25% Increase in loan during period - 2,542 Decrease in loan during period - - Ending balance - 2,542 Total 22,017 24,559 Subsidiary Sino-Thai Construction Services Company Limited Beginning balance - 194,506 - 7.3941-9% Increase in loan during period - - Decrease in loan during period - (35,595) Less Allowance for doubtful accounts - (158,911) Ending balance - - Associated company MMR Asia Company Limited Beginning balance 20,364 14,864 15-17% 17% 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 - - Thai Maintenance Contracting Company Limited Beginning balance 13,000 13,000 10% 10% Increase in loan during period - - Decrease in loan during period (8,000) (8,000) Ending balance 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 - - Total short-term loans to related parties - net 27,017 29,559 Investments as at September 30, 2000 and December 31, 1999 consisted of:- (Amounts : Thousands Baht) 2000 Fully Paid Company's separate Shares Capital Portion of Consolidated balance sheets Balance Sheets 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% - 6 - 6 Sino-Thai Joint Venture - 100% - - - 1,732 Total investment in joint ventures - 14,867 - 16,599 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 67,270 Total - - 231,441 67,270 (Amounts : Thousands Baht) 2000 Fully Paid Company's separate Shares Capital Portion of Consolidated balance sheets Balance Sheets Type of Business (Thousands Baht) Interest Cost Method Equity Method Cost Method Equity Method Associated Companies HTR Corporation Limited Real estate 500,000 47.6% 329,990 167,918 329,990 167,918 DKK Sino-Thai Engineering Telecommunications Company Limited and transmission lines 8,000 35% 2,800 78,184 2,800 78,184 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 9,893 2,340 9,893 340,130 264,981 340,130 264,981 Less Provision for declining in value of investment (8,986) (8,986) Total 255,995 255,995 Total investments in related parties - net 255,995 323,265 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 (186,783) (186,783) Total 9,000 9,000 (Amounts : Thousands Baht) 2000 Fully Paid Company's separate Shares Capital Portion of Consolidated balance sheets Balance Sheets Type of Business (Thousands Baht) Interest Cost 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) - 29,129 - 29,029 - Total investments in others - net 38,129 - 38,029 - (Amounts : Thousands Baht) 1999 Fully Paid Company's separate Shares Capital Portion of Consolidated balance sheets Balance Sheets Type of Business (Thousands Baht) Interest Cost Method Equity Method Cost Method quity 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 (Amounts : Thousands Baht) 1999 Fully Paid Company's separate Shares Capital Portion of Consolidated balance sheets Balance Sheets Company's Name Type of Business (Thousands 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 - - 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 Engineering Telecommunications Company Limited and transmission lines 8,000 35% 2,800 37,152 2,800 37,152 ACS Asia Company Limited Light steels 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 245,543 245,543 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 ofavailable for sale securities (154,796) (154,796) Total 40,987 40,987 (Amounts : Thousands Baht) 1999 Fully Paid Company's separate Shares Capital Portion of Consolidated balance sheets Balance Sheets Type of Business (Thousands Baht) Interest Cost Method Equity Method Cost Method Equity Method General Securities Abico Land Company Limited 200,000 15% 30,000 - 30,000 - Nithipat Leasing Company Limited 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 Band Public Company Limited Fund 40,000,000 0.25% 100,000 - 100,000 - Government Bond - - 23,888 - 23,888 - Others 92,531 - 87,732 - 397,637 - 360,438 - Less Provision for declining in value of general securities (156,595) - (131,667) - Total 241,042 - 228,771 - Total investments in other related parties - net 282,029 - 269,758 - Loans other as at September 30, 2000 and December 31, 1999 are as follows: 2000 Consolidated Company's Separate Policy of interest rate on loans charging Balance Sheet Balance Sheet Consolidated Company's Separate (Thousands Baht) (Thousands Baht) Balance sheet Balance sheet Others Related Parties 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 4,150 4,150 1999 Consolidated Company's Separate Policy of interest rate on loans charging Balance Sheet Balance Sheet Consolidated Company's Separate (Thousands Baht) (Thousands Baht) Balance sheet Balance sheet Other Related Parties 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 4,150 4,150 As at September 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 27.98 million and Baht 35.87 million, respectively, in the consolidated financial statements, and Baht 263.23 million and Baht 203.81 million, respectively, in the separate financial statements which were shown as other liabilities. 2.2 Cash and Cash Equipment Cash and cash equivalents as at September 30, 2000 and 1999 are summarized as follows: (Amounts : Thousands Baht) Consolidated Company's Separate Statements of Cash Flows Statements of Cash Flows 2000 1999 2000 1999 Cash in hand and at banks 139,416 301,842 132,381 241,993 Add Short-term investment-fixed deposit- three months 837,587 755,394 837,279 754,615 Less Cash at bank pledged as collaterals (26,070) (133,705) (25,847) (130,592) Short-term investment pledged as collaterals (796,051) (705,961) (796,051) (705,961) Cash and cash equivalents - net 154,882 217,570 147,762 160,055 2.3 Accounts Receivable Accounts receivable - others as at September 30, 2000 and December 31, 1999 are as follows: (Amount in Thousand Baht) Consolidated Balance Sheets Company's Separate Balance Sheets 2000 1999 2000 1999 Overdue 1 month to 4 months 181,713 321,921 179,315 308,425 More than 4 months to 12 months 17,865 57,877 5,115 54,575 More than 12 months 354,910 359,891 325,653 327,807 Total 554,488 739,689 510,083 690,807 Allowance for doubtful accounts have been provided for 335,625 334,201 303,222 317,503 The above overdue accounts receivable, the Company and subsidiaries are following up on the collection of these debts. The Company and subsidiaries' management have provided adequately for allowance for doubtful accounts in accordance with accounting policy. 2.4 Long-term Loans (more)