NSOLIDATED F/S Q2/1998

Amounts in thousand Baht percentage of share holding CONSOLIDATED THE COMPANY ONLY 1998 1997 1998 1997 1998 1997 Loan to Other related companies Joint Venture 344,175 - 344,175 - Other 4,240 4,240 4,240 4,240 759,130 639,498 724,930 554,255 Investments and Loan - net 1,280,811 1,140,021 1,539,686 1,437,340 At June 30, 1997, investment in non-current marketable securities are stated at cost which is excess of the aggregate market value of Baht 202.16 million. The company did not record unrealized holding loss on such investments in the shareholders equity. 4.2 Accounts receivable - trade from related companies consisted of: CONSOLIDATED THE COMPANY ONLY (Amounts in thousand Baht) 1998 1997 1998 1997 Subsidiaries - - 6,276 808 Associated companies 28,950 70,892 28,950 70,892 Other related companies 103,660 9,173 84,199 8,114 Total 132,610 80,065 119,425 79,814 4.3 Accounts payable - trade from related companies consisted of: CONSOLIDATED THE COMPANY ONLY (Amounts in thousand Baht) 1998 1997 1998 1997 Subsidiaries - - 17,946 1,472 Associated companies 807 16,537 807 16,537 Other related companies 14,638 5,503 3,790 3,790 Total 15,445 22,040 22,543 21,799 4.4 The company significant transactions with its related companies for the six-month periods ended June 30, are as follows: CONSOLIDATED THE COMPANY ONLY (Amounts in thousand Baht) 1998 1997 1998 1997 Revenues from construction 3,771 98,574 3,771 98,574 Revenues from services, rent and others 11 33 937 1,031 Interest income - - 1,931 4,016 Equipment purchase - - 1,287 2,372 Concrete service and others - - 987 647 NOTE 5 - CHANGE IN ACCOUNTING METHOD In 1996 and 1994, the Company changed its accounting method for recording investments in subsidiaries and associated companies from the cost method to the equity method. The Company recorded investments in subsidiaries and associated companies by using the equity method in the financial statements for the three-month periods and six-month periods ended June 30,1998 and 1997 on the basis of the financial information obtained from the management which had not been audited or reviewed by the auditors in accordance with standards established by The Thai Institute of Certified Accountants and Auditors for the recording of investments in subsidiaries and associated companies. The change of accounting method has been adopted to comply with the regulations of the Stock Exchange of Thailand in its letter date December 30, 1993. In 1996 and 1995, an associated company increased its registered share capital of which the whole amounts were issued to the new shareholders, resulting in the increase of the Companys equity in that company in the amount of Baht 43.12 million and Baht 25.71 million respectively. These excess of book value over cost of investment are shown as non- current liabilities in the financial statements and are amortized by the straight-line method over a period of 10 years. NOTE 6 - CASH AND CASH EQUIVALENTS Cash and cash equivalents as at June 30, 1998 are summarized as follows: CONSOLIDATED THE COMPANY ONLY (Amounts in thousand Baht) Cash in hand and at banks 335,751 309,419 Less Bank overdrafts (218,601) (167,503) Cash and cash equivalents - net 117,150 141,916 NOTE 7 - ACCOUNTS RECEIVABLE Accounts receivable at June 30 are summarized as follows: CONSOLIDATED THE COMPANY ONLY (Amounts in thousand Baht) 1998 1997 1998 1997 Accounts receivable 1,242,409 1,256,667 1,158,386 1,069,925 Unbilled works on construction contracts 541,039 783,745 541,039 783,745 Total 1,783,448 2,040,412 1,699,425 1,853,670 Less Allowance for doubtful accounts (59,835) (39,114) (53,767) (35,385) Accounts receivable - net 1,723,613 2,001,298 1,645,658 1,818,285 Accounts receivable are overdue according to the following aging analysis : CONSOLIDATED THE COMPANY ONLY 1998 1997 1998 1997 5 months to 12 months 337,135 93,475 257,952 80,407 over 12 months 181,443 110,259 168,912 104,874 Total 518,578 203,734 426,864 185,281 As at June 30, 1998, the Company has overdue accounts receivable amounting to approximately Baht 80.72 million. The company has not set up provision for such accounts receivable because the management believes that the debt will be settled up. NOTE 8 - LONG-TERM LOANS In 1996 the parent company obtained the US$ 80,000,000 syndicate loan from 19 banks and financial institutions and the US$ 5,000,000 loan from a foreign bank which bear interest at the rate subject to the SIBOR rate. The principals are repayable at the end of 3 years from the drawdown date and interest payable semi-annually. The lenders may request the Company to repay the loans at the end of 2 years from the drawdown date. Loan covenants include maintenance of important financial ratios to the level as set out in the agreement. Since 1997, the Company cannot maintain the above mentioned financial ratios which may result in the lender calling the loan. Subsidiary company has current portion of long-term loans amounting to approximately Baht 24.50 million which was shown under current liabilities. NOTE 9 - CONTINGENCIES AND COMMITMENTS The company has contingent liabilities and commitments resulting from the following: Million Baht Guarantor of credit facilities of affiliated companies 214.82 Letter of guarantee issued by bank 2,181.74 Letter of credit 0.43 2,396.99 NOTE 10 - RECLASSIFICATION OF ACCOUNTS Certain accounts in the financial statements for the three-month period and six-month period ended June 30, 1997 have been reclassified to conform with the presentation in the financial statements for the three-month period and six-month period ended June 30, 1998.