F/S OF EGCOMP 1998

AUDITORS REPORT To the Shareholders of Electricity Generating Company Limited I have audited the accompanying balance sheet of Electricity Generating Public Company Limited and the consolidated balance sheet of Electricity Generating Public Company Limited and its subsidiaries as at December 31, 1998 and the related statements of income,changes in shareholders' equity and the statement of cash flows for the year then ended of Electricity Generating Public Company Limited and the related consolidated statements of income, changes in shareholders' equity and the consolidated statement of cash flows forthe year then ended of Electricity Generating Company Limited and its subsidiaries. These financial statements are the responsibility of the Companys management. My responsibility is to express an opinion on these financial statements based on my audit. The financial statements for the year ended December 31, 1997, which are presented forcomparative purpose, were audited by another auditor, whose report dated February 24, 1998 expressed an unqualified opinion. I conducted my audit in accordance with generally accepted auditing standards in Thailand.Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall f inancial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Electricity Generating Public Company Limited as at December 31, 1998 and the results of its operations, changes in shareholders' equity and its cash flows for the year then ended in conformity with generally accepted accounting principles in Thailand. I draw attention to note 23 which is marked "unaudited". The disclosure information regarding the Year 2000 issue, as presented in this note, has not been subjected to auditing procedures and, accordingly, I express no opinion on it. NANGNOI CHAROENTHAVEESUB Certified Public Accountant (Thailand) No. 3044 PricewaterhouseCoopers Audit and Business Advisory Services Ltd. Bangkok February 2, 1999 Electricity Generating Public Company Limited and its subsidiaries Page 2 Balance sheets as at December 31, 1998 and 1997 Notes The company only 1998 1997 (Baht) (Baht) ASSETS Current assets Cash in hand and at banks 4 975,525,756 28,107,620 Short-term investments Deposits at banks and financial institutions 5 1,166,200,214 2,636,795,498 Marketable securities 6 249,337,896 263,202,301 Deposits at banks and financial institutions 7, used as collateral 13,14 - - Accounts receivable - trade 3 - - Short-term loan and Advances to associated companies 3 29,804,868 5,439,557 Spare parts and supplies, net 8 - - Other current assets Interest receivable 21,603,345 46,338,668 Others 73,444,648 261,408,013 Total current assets 2,515,916,727 3,241,291,657 Deposits at financial institutions 9 - - Deposits at financial institutions used as 7, collateral 13,14 - - Investments in and Loan to subsidiary, associated and other companies 10 12,226,174,278 5,618,332,246 Property, plant and 11, equipment, net 13,14 849,065,061 487,302,566 Other assets, net 12 9,486,749 11,389,610 TOTAL ASSETS 15,600,642,815 9,358,316,079 Notes Consolidation 1998 1997 (Baht) (Baht) ASSETS Current assets Cash in hand and at banks 4 1,044,418,442 74,761,159 Short-term investments Deposits at banks and financial institutions 5 1,417,581,708 3,144,466,521 Marketable securities 6 142,068,616 263,202,301 Deposits at banks and financial institutions 7, used as collateral 13,14 6,433,112,131 5,199,979,745 Accounts receivable - trade 3 1,323,336,734 984,729,526 Short-term loan and Advances to associated companies 3 49,791,959 - Spare parts and supplies, net 8 1,784,323,054 1,846,728,096 Other current assets Interest receivable 87,521,920 106,940,291 Others 228,420,192 514,731,509 Total current assets 12,510,574,756 12,135,539,148 Deposits at financial institutions 9 54,694,630 54,694,630 Deposits at financial institutions used as 7, collateral 13,14 2,861,303,210 2,501,667,092 Investments in and Loan to subsidiary, associated and other companies 10 1,040,562,183 269,203,126 Property, plant and 11, equipment, net 13,14 28,633,378,762 29,806,260,013 Other assets, net 12 730,280,849 842,188,346 TOTAL ASSETS 45,830,794,390 45,609,552,355 The notes to the financial statements on pages 9 to 27 form an integral part of these financial statements. Auditor's report page 1. Electricity Generating Public Company Limited and its subsidiaries Page 2 Balance sheets as at December 31, 1998 and 1997 Notes The company only 1998 1997 (Baht) (Baht) LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable - trade - - Current portion of long-term loans and debentures 13,14 - - Amounts due to related companies - - Other current liabilities Interest payable - - Value added tax payable - - Others 170,559,783 41,532,168 Total current liabilities 170,559,783 41,532,168 Long-term loans 13 - - Debentures 14 - - TOTAL LIABILITIES 170,559,783 41,532,168 MINORITY INTEREST - - Shareholders' equity Share capital 15 5,227,092,000 5,212,338,000 Share premium 8,526,184,000 8,496,676,000 Retained earnings (accumulated deficit) Legal reserve 18 102,643,398 19,792,680 Unappropriated 1,574,163,634 (4,412,022,769) TOTAL SHAREHOLDERS' EQUITY 15,430,083,032 9,316,783,911 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 15,600,642,815 9,358,316,079 Notes Consolidation 1998 1997 (Baht) (Baht) LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable - trade 204,215,319 313,905,119 Current portion of long-term loans and debentures 13,14 2,174,252,900 1,576,905,660 Amounts due to related companies 72,074,087 - Other current liabilities Interest payable 143,218,419 169,224,559 Value added tax payable 173,813,832 190,233,543 Others 295,239,782 296,213,937 Total current liabilities 3,062,814,339 2,546,482,818 Long-term loans 13 18,159,840,100 23,500,939,200 Debentures 14 9,128,644,783 10,208,968,723 TOTAL LIABILITIES 30,351,299,222 36,256,390,741 MINORITY INTEREST 49,412,136 36,377,703 Shareholders' equity Share capital 15 5,227,092,000 5,212,338,000 Share premium 8,526,184,000 8,496,676,000 Retained earnings (accumulated deficit) Legal reserve 18 102,643,398 19,792,680 Unappropriated 1,574,163,634 (4,412,022,769) TOTAL SHAREHOLDERS' EQUITY 15,430,083,032 9,316,783,911 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 45,830,794,390 45,609,552,355 Director . Date February 2, 1999 Electricity Generating Public Company Limited and its subsidiaries Page 3 Statements of income (loss) for the years ended December 31, 1998 and 1997 Notes The company only 1998 1997 (Baht) (Baht) REVENUES Sales 3 - - Service income - - Other income Interest income 379,682,017 347,673,708 Others 88,464,767 138,585,197 TOTAL REVENUES 468,146,784 486,258,905 EXPENSES Cost of sales 3 - - Cost of services - - Administrative expenses 180,720,010 156,453,592 Interest expenses - - Other expenses 16 - 379,785,824 Directors' remuneration 5,545,600 6,102,000 TOTAL EXPENSES 186,265,610 542,341,416 Net income (loss) before share of profits (losses) from subsidiaries and associates, income tax and extraordinary item 281,881,174 (56,082,511) Share of profits (losses) from subsidiaries and associates 5,813,410,718 (5,407,826,668) Income tax (26,254,771) - Minority interest - - Net income (loss) before extraordinary item 6,069,037,121 (5,463,909,179) Extraordinary item : 17 Exchange losses - - NET INCOME (LOSS) FOR THE YEAR 6,069,037,121 (5,463,909,179) EARNINGS (LOSS) PER SHARE Net income (loss) before extraordinary item 11.62 (10.49) Extraordinary item - - Net income (loss) 11.62 (10.49) The notes to the financial statements on pages 9 to 27 form an integral part of these financial statements. Auditor's report page 1. Electricity Generating Public Company Limited and its subsidiaries Page 4 (More)