INANCIAL STATEMENTS FOR Q3-1999 (REVISED)

AUDITOR'S REPORT ON REVIEW OF INTERIM FINANCIAL STATEMENTS To the Shareholders of Electricity Generating Public Company Limited I have performed a review of the accompanying company and consolidated balance sheets of Electricity Generating Public Company Limited as at September 30, 1999 and 1998, and the related company and consolidated statements of income (loss), changes in shareholders'equity and statements of cash flows for the third quarters and nine-month periods then ended. These financial statements are the responsibility of the Company's management. My responsibility is to issue a report on these financial statements based on my review. I conducted my review in accordance with standards established by the Institute of Certified Accountants and Auditors of Thailand. A review of interim financial statements and consolidated financial statements consists principally of obtaining an understanding of the system for the preparation of the financial statements, making an analytical review of pertinent financial data, and making inquiries of officials of the company who have responsibility for financial and accounting matters. This review is substantially less in scope than an examination in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, I express no opinion on the financial statements which I have reviewed. Based on my review, I am not aware of any material modifications that should be made to the aforementioned interim company and consolidated financial statements for them to be in conformity with generally accepted accounting principles. As described in note 3 to the financial statements, the company has changed its accounting policy in respect of valuation of investments to be in accordance with the accounting standard number 40. NANGNOI CHAROENTHAVEESUB Certified Public Accountant (Thailand) No. 3044 PricewaterhouseCoopers ABAS Limited Bangkok October 21, 1999 The accompanying financial statements are not intended to present the financial position, results of operations, and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Thailand. Unaudited Reviewed Electricity Generating Public Company Limited Page 2 Company and consolidated balance sheets as at September 30, 1999 and 1998 Notes The company only Consolidation 1999 1998 1999 1998 (Baht'000) (Baht'000) (Baht'000) (Baht'000) ASSETS Current assets Cash in hand and at banks 441,188 746,256 604,763 775,741 Short-term investments Deposits at banks and financial institutions 6 1,588,730 1,533,031 2,098,787 1,768,828 Deposits at banks and financial institutions used as collateral 7 - - 7,585,624 7,124,270 Marketable securities 214,498 199,726 136,135 89,823 Account receivable-trade 5 - - 1,602,292 1,506,043 Advance and loans to related companies 58,950 - 51,382 33,202 Spare parts and supplies, net - - 1,862,118 2,022,794 Other current assets Interest receivable 17,075 44,935 90,816 167,683 Others 69,401 98,599 170,265 79,832 Total current assets 2,389,842 2,622,547 14,202,182 13,568,216 Deposits at financial institutions - - 54,695 59,695 Deposits at financial institutions used as collateral 7 - - 4,049,270 2,810,004 Investments in and loans to subsidiaries, associates and others 8 13,106,135 11,009,293 1,122,557 962,750 Property, plant and equipment, net 9,10 1,009,740 692,399 27,660,290 28,831,334 Other assets, net 6,477 13,368 978,771 885,414 TOTAL ASSETS 16,512,194 14,337,607 48,067,765 47,117,413 The notes to the financial statements on pages 7 to 21 form an integral part of these financial statements. 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Notes The company only Consolidation 1999 1998 1999 1998 (Baht'000) (Baht'000) (Baht'000) (Baht'000) LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable 5 - - 155,760 113,489 Current portion of long-term loans and debentures 9,10 - - 2,355,788 1,508,286 Other current liabilities Interest payable - - 825,685 852,405 Value added tax payable - - 144,867 164,730 Others 157,823 90,392 276,769 482,651 Total current liabilities 157,823 90,392 3,758,869 3,121,561 Long-term loans 9 - - 18,990,545 19,734,548 Debentures 10 - - 8,815,371 9,968,802 TOTAL LIABILITIES 157,823 90,392 31,564,785 32,824,911 MINORITY INTEREST - - 148,609 45,287 Shareholders' equity Share capital 5,242,711 5,227,092 5,242,711 5,227,092 Share premium 8,557,422 8,526,184 8,557,422 8,526,184 Unrealised gain on investments in marketable securities available for sales 47,749 - 47,749 - Legal reserve 102,643 19,793 102,643 19,793 Retained earnings 2,403,846 474,146 2,403,846 474,146 TOTAL SHAREHOLDERS' EQUITY 16,354,371 14,247,215 16,354,371 14,247,215 TOTAL LIABILITIES AND SHAREHOLDERS'EQUITY 16,512,194 14,337,607 48,067,765 47,117,413 Director Date October 21, 1999 . Unaudited Reviewed Electricity Generating Public Company Limited Page 3 Company and consolidated statements of income (loss) for the third quarters and the nine-month periods ended September 30, 1999 and 1998 The company only Notes 1999 1998 Third Third quarter Nine-month quarter Nine-month (Baht'000) (Baht'000) (Baht'000) (Baht'000) REVENUES Sales 5 - - - - Service income - - - - Other income Interest income 24,266 96,740 93,491 325,342 Others 24,015 177,484 8,052 86,971 TOTAL REVENUES 48,281 274,224 101,543 412,313 EXPENSES Cost of sales 5, 11 - - - - Cost of services - - - - Administrative expenses 59,815 148,247 44,555 141,890 Interest expenses - - - - Exchange losses (gains) 12 - - - - Directors' remuneration 1,910 5,117 1,219 3,989 TOTAL EXPENSES 61,725 153,364 45,774 145,879 Net income (loss) before share of profits(lossses) from subsidiaries and associates and income tax (13,444) 120,860 55,769 266,434 Share of profits (losses) from subsidiaries and associates (216,636) 1,408,317 1,378,907 4,642,129 Income tax - (13,723) (22,394) (22,394) Minority interest - - - - NET INCOME (LOSS) FOR THE PERIOD (230,080) 1,515,454 1,412,282 4,886,169 EARNINGS (LOSS) PER SHARE Net income (loss) (Baht) (0.44) 2.89 2.70 9.35 Consolidation 1999 1998 Third Third quarter Nine-month quarter Nine-month (Baht'000) (Baht'000) (Baht'000) (Baht'000) REVENUES Sales 5 2,182,356 6,455,161 2,061,213 6,867,598 Service income 14,728 68,676 10,104 21,439 Other income Interest income 162,664 507,763 362,666 1,072,612 Others 25,977 186,958 12,179 99,913 TOTAL REVENUES 2,385,725 7,218,558 2,446,162 8,061,562 EXPENSES Cost of sales 5, 10 651,790 1,932,909 958,865 2,707,051 Cost of services 16,505 64,887 14,072 42,883 Administrative expenses 139,207 380,786 105,074 331,399 Interest expenses 752,998 2,218,897 823,294 2,541,435 Exchange losses (gains) 11 968,900 1,001,812 (893,045) (2,477,855) Directors' remuneration 4,955 13,511 3,730 11,995 TOTAL EXPENSES 2,534,355 5,612,802 1,011,990 3,156,908 Net income (loss) before share of profits (lossses) from subsidiaries and associates and income tax (148,630) 1,605,756 1,434,172 4,904,654 Share of profits (losses) from subsidiaries and associates (82,836) (80,496) - - Income tax - (13,723) (22,394) (22,394) Minority interest 1,386 3,917 504 3,909 NET INCOME (LOSS) FOR THE PERIOD (230,080) 1,515,454 1,412,282 4,886,169 EARNINGS (LOSS) PER SHARE Net income (loss) (Baht) (0.44) 2.89 2.70 9.35 The notes to the financial statements on pages 7 to 21 form an integral part of these financial statements. 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Unaudited Reviewed Electricity Generating Public Company Limited Page 4 Company and consolidated statements of changes in shareholders' equity for the third quarters and the nine-month periods ended September 30, 1999 and 1998 Note The company only 1999 1998 Third Third quarter Nine-month quarter Nine-month (Baht'000) (Baht'000) (Baht'000) (Baht'000) Share capital Balance brought forward 5,242,711 5,227,092 5,227,092 5,212,338 Increase - 15,619 - 14,754 Balance carried forward 5,242,711 5,242,711 5,227,092 5,227,092 Share premium Balance brought forward 8,557,422 8,526,184 8,526,184 8,496,676 Increase - 31,238 - 29,508 Balance carried forward 8,557,422 8,557,422 8,526,184 8,526,184 Unrealised gain on investments in marketable securities available for sales Balance brought forward 65,778 - - - Increase (decrease) (18,029) 47,749 - - Balance carried forward 47,749 47,749 - - Legal reserve Balance brought forward 102,643 102,643 19,793 19,793 Balance carried forward 102,643 102,643 19,793 19,793 Unappropriated retained earnings (accumulated deficit) Balance brought forward 2,633,926 1,574,164 (938,136) (4,412,023) Net income (loss) for the period (230,080) 1,515,454 1,412,282 4,886,169 Dividends 13 - (663,968) - - Directors' bonus - (21,804) - - Balance carried forward 2,403,846 2,403,846 474,146 474,146 Total shareholders' equity 16,354,371 16,354,371 14,247,215 14,247,215 Consolidation 1999 1998 Third Third quarter Nine-month quarter Nine-month (Baht'000) (Baht'000) (Baht'000) (Baht'000) Share capital Balance brought forward 5,242,711 5,227,092 5,227,092 5,212,338 Increase - 15,619 - 14,754 Balance carried forward 5,242,711 5,242,711 5,227,092 5,227,092 Share premium Balance brought forward 8,557,422 8,526,184 8,526,184 8,496,676 Increase - 31,238 - 29,508 Balance carried forward 8,557,422 8,557,422 8,526,184 8,526,184 Unrealised gain on investments in marketable securities available for sales Balance brought forward 65,778 - - - Increase (decrease) (18,029) 47,749 - - Balance carried forward 47,749 47,749 - - Legal reserve Balance brought forward 102,643 102,643 19,793 19,793 Balance carried forward 102,643 102,643 19,793 19,793 Unappropriated retained earnings (accumulated deficit) Balance brought forward 2,633,926 1,574,164 (938,136) (4,412,023) Net income (loss) for the period (230,080) 1,515,454 1,412,282 4,886,169 Dividends - (663,968) - - Directors' bonus - (21,804) - - Balance carried forward 2,403,846 2,403,846 474,146 474,146 Total shareholders' equity 16,354,371 16,354,371 14,247,215 14,247,215 The notes to the financial statements on pages 7 to 21 form an integral part of these financial statements. 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Unaudited Reviewed Electricity Generating Public Company Limited Page 5 Company and consolidated statements of cash flows for the third quarters and the nine-month periods ended September 30, 1999 and 1998 The company only 1999 1998 Third Third quarter Nine-month quarter Nine-month (Baht'000) (Baht'000) (Baht'000) (Baht'000) Cash flows from operating activities : Net income (loss) for the period (230,080) 1,515,454 1,412,282 4,886,169 Adjustments to reconcile net income (loss) to net cash Unrealised losses (gains) on exchange rate - - - - Depreciation and amortisation 15,791 26,306 3,178 9,953 Gains from disposal of marketable securities (918) (50,819) (6,132) (82,588) Increase in LCM provision - - - 13,481 Dividend received from other companies - (90,113) - (960) Shares of losses (profits) from subsidiary and associated companies 216,636 (1,408,317) (1,378,907) (4,642,129) Minority interest - - - - Cash flows before changes in working capital 1,429 (7,489) 30,421 183,926 Changes in working capital : Deposits at banks and financial institutions used as collateral - - - - Account receivable - trade - - - - Advance and loans to associated companies 2,455 (29,145) 1,139 5,440 Spare parts and supplies - - - - Other current assets 6,133 8,619 23,703 (22,681) Other assets (369) 2,384 (3,396) (3,650) Accounts payable - trade - - - - Other current liabilities (34,488) (65,355) 54,781 63,628 Net cash provided by (used in) operating activities (24,840) (90,986) 106,648 226,663 Consolidation 1999 1998 Third Third quarter Nine-month quarter Nine-month (Baht'000) (Baht'000) (Baht'000) (Baht'000) Cash flows from operating activities : Net income (loss) for the period (230,080) 1,515,454 1,412,282 4,886,169 Adjustments to reconcile net income (loss) to net cash Unrealised losses (gains) on exchange rate 985,538 1,026,493 (930,944) (2,489,899) Depreciation and amortisation 456,773 1,334,479 441,894 1,310,203 Gains from disposal of marketable securities (918) (50,819) (3,001) (82,587) Increase in LCM provision - - (1,117) 13,481 Dividend received from other companies - (90,113) - (960) Shares of losses (profits) from subsidiary and associated companies 82,836 80,496 - - Minority interest (1,386) (3,917) (504) (3,909) Cash flows before changes in working capital 1,292,763 3,812,073 918,610 3,632,498 Changes in working capital : Deposits at banks and financial institutions used as collateral (1,739,873) (1,749,906) (1,777,812) (2,982,098) Account receivable - trade (76,578) (282,599) 196,604 (543,278) Advance and loans to associated companies 1,522 (32,939) (12,386) (18,170) Spare parts and supplies 58,196 (85,846) (21,059) (176,830) Other current assets (17,799) (26,595) (140,826) 35,525 Other assets (193,641) (203,994) (3,592) (4,137) Accounts payable - trade 4,104 (116,894) 1,450 (221,736) Other current liabilities 567,254 512,281 820,394 987,807 Net cash provided by (used in) operating activities (104,052) 1,825,581 (18,617) 709,581 The notes to the financial statements on pages 7 to 21 form an integral part of these financial statements. 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Unaudited Reviewed Electricity Generating Public Company Limited Page 6 Company and consolidated statements of cash flows for the third quarters and the nine-month periods ended September 30, 1999 and 1998 continued The company only 1999 1998 Third Third quarter Nine-month quarter Nine-month (Baht'000) (Baht'000) (Baht'000) (Baht'000) Cash flows from investing activities : Purchase of property, plant and equipment (14,856) (186,403) (92,099) (213,377) Sales of marketable securities 918 133,408 6,132 319,476 Investments in and loans to subsidiaries, associates and others (441,500) (541,500) (603,950) (776,450) Dividend received from other companies - 90,113 - 960 Dividend received from subsidiaries - 1,057,506 27,619 27,619 Net cash provided by (used in) investing activities (455,438) 553,124 (662,298) (641,772) Cash flows from financing activities : Increase in share capital - 46,857 - 44,262 Increase in share capital of subsidiaries - - - - Repayment of long-term loans and debentures - - - - Dividends (893) (620,803) (14,791) (14,769) Net cash provided by (used in) financing activities (893) (573,946) (14,791) 29,493 Net change in cash and cash equivalents (481,171) (111,808) (570,441) (385,616) Cash and cash equivalents, beginning of period 2,511,089 2,141,726 2,849,728 2,664,903 Cash and cash equivalents, end of period 2,029,918 2,029,918 2,279,287 2,279,287 Cash and cash equivalents are made up as follows : Cash in hand and at banks 441,188 441,188 746,256 746,256 Short-term investments 1,588,730 1,588,730 1,533,031 1,533,031 2,029,918 2,029,918 2,279,287 2,279,287 Additional information : Interest paid - - - - Income tax paid 22,900 22,900 - - Consolidation 1999 1998 Third Third quarter Nine-month quarter Nine-month (Baht'000) (Baht'000) (Baht'000) (Baht'000) Cash flows from investing activities : Purchase of property, plant and equipment (45,118) (276,600) (78,155) (249,701) Sales of marketable securities 918 133,408 6,132 319,476 Investments in and loans to subsidiaries, associates and others (200,000) (330,001) (446,959) (731,087) Dividend received from other companies - 90,113 - 960 Dividend received from subsidiaries - - - - Net cash provided by (used in) investing activities (244,200) (383,080) (518,982) (660,352) Cash flows from financing activities : Increase in share capital - 46,857 - 44,262 Increase in share capital subsidiaries 103,500 103,500 10,200 10,200 Repayment of long-term loans and debentures - (730,505) - (749,769) Dividends (893) (620,803) (14,791) (14,769) Net cash provided by (used in) financing activities 102,607 (1,200,951) (4,591) (710,076) Net change in cash and cash equivalents (245,645) 241,550 (542,190) (660,847) Cash and cash equivalents, beginning of period 2,949,195 2,462,000 3,086,759 3,205,416 Cash and cash equivalents, end of period 2,703,550 2,703,550 2,544,569 2,544,569 Cash and cash equivalents are made up as follows : Cash in hand and at banks 604,763 604,763 775,741 775,741 Short-term investments 2,098,787 2,098,787 1,768,828 1,768,828 2,703,550 2,703,550 2,544,569 2,544,569 Additional information : Interest paid 81,527 1,556,454 107,437 1,808,653 Income tax paid 22,900 22,900 - - The notes to the financial statements on pages 7 to 21 form an integral part of these financial statements. Auditor's report page 1. Unaudited Reviewed Electricity Generating Public Company Limited Page 7 Notes to the interim company financial statements and consolidated financial statements - September 30, 1999 Basis of preparation of the interim financial statements 1. The financial statements on pages 2 to 6 and the notes to the financial statements and the consolidated financial statements are unaudited and have been prepared from the accounting records of the company and its subsidiaries. In the opinion of Management,these interim financial statements present fairly the financial position and the results of its operations and changes in shareholders' equity of the company and its subsidiaries in conformity (more)