ANNUAL FINANCIAL STATEMENTS 1999

AUDITOR'S REPORT To the Shareholders of Electricity Generating Public Company Limited I have audited the accompanying consolidated and company balance sheets of Electricity Generating Public Company Limited as at 31 December 1999 and 1998, and the related consolidated and company statements of income, of changes in shareholders' equity, of retained earnings(deficit),and of cash flows for the years then ended. These financial statements are the responsibility of the Company's management. My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with generally accepted auditing standards in Thailand. Those standards require that I plan and perform the audits 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 financial statement presentation. I believe that my audits provide a reasonable basis for my opinion. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Company as at 31 December 1999 and 1998, and the results of its operations, changes in shareholders' equity and its cash flows for the years then ended in accordance with generally accepted accounting principles in Thailand. As described in note 2, in accordance with Accounting Standard number 40, the Group has changed its accounting policy relating to Accounting for Investments in Debt and Equity Securities from the lower of cost or market value to fair value. No retrospective adjustment is required. Additionally, in accordance with the Interpretation number 4 of the Institute of the Certified Accountants and Auditors of Thailand, dated 20 January 2000 , the Group reviewed its accounting policy in respect of capitalisation of certain intangible assets including deferred pre-operating expenses and other deferred expenses. As a result of this review, the Group has changed its accounting policy to expense such costs as incurred. In accordance with the Interpretation number 4 of the Institute of the Certified Accountants and Auditors of Thailand, a retrospective adjustment is made to the opening retained earnings as at 1 January 1999 and 1998. I draw attention to note 30, which is marked "unaudited". The disclosure information regarding the Year 2000 issue, as presented in this note, has not been subject to auditing procedures and, accordingly, I express no opinion on it. NANGNOI CHAROENTHAVEESUB Certified Public Accountant (Thailand) No. 3044 PricewaterhouseCoopers ABAS Limited Bangkok 4 February 2000 Electricity Generating Public Company Limited Balance Sheets As at 31 December Consolidated Notes 1999 1998 (Restated) Baht Baht ASSETS Current Assets Cash on hand and at banks 5 1,680,602,753 1,044,418,442 Short-term investments Deposits at banks and financial institutions 6 6,662,914,308 1,407,746,228 Marketable securities 7 95,477,840 142,068,616 Deposits at banks and financial institutions used as collateral 8,15,16 5,932,414,019 6,442,947,611 Trade accounts receivable 4 1,448,836,835 1,323,336,734 Amounts due from and short-term loans to related companies 4 19,311,978 49,791,959 Spare parts and supplies, net 9 1,883,302,881 1,784,323,054 Other current assets Interest receivable 111,539,328 87,521,920 Others 222,653,727 228,420,192 Total Current Assets 18,057,053,669 12,510,574,756 Non-Current Assets Long-term investments Deposits at financial institutions 10 48,312,333 54,694,630 Deposits at financial institutions used as collateral 8,15 3,740,991,262 2,861,303,210 Loans to related companies 4 32,490,000 - Investments in subsidiaries and associates 11 480,849,939 495,762,188 Other long-term investments 12 227,980,818 544,799,995 Property, plant, and equipment, net 13 27,271,455,014 28,633,378,762 Other assets 14 38,956,014 12,373,604 Total Non-Current Assets 31,841,035,380 32,602,312,389 Total Assets 49,898,089,049 45,112,887,145 The notes to the consolidated and company financial statements on pages 9 to 25 form an integral part of these financial statements. Company otes 1999 1998 (Restated) Baht Baht ASSETS Current Assets Cash on hand and at banks 5 1,413,455,703 975,525,756 Short-term investments Deposits at banks and financial institutions 6 6,121,494,262 1,166,200,214 Marketable securities 7 171,630,680 249,337,896 Deposits at banks and financial institutions used as collateral 8,15,16 - - Trade accounts receivable 4 - - Amounts due from and short-term loans to related companies 4 13,678,989 29,804,868 Spare parts and supplies, net 9 - - Other current assets Interest receivable 50,648,224 21,603,345 Others 102,731,292 73,444,649 Total Current Assets 7,873,639,150 2,515,916,728 Non-Current Assets Long-term investments Deposits at financial institutions 10 - - Deposits at financial institutions used as collateral 8,15 - - Loans to related companies 4 75,200,000 25,200,000 Investments in subsidiaries and associates 11 12,788,857,799 10,945,267,037 Other long-term investments 12 227,980,818 537,799,995 Property, plant, and equipment, net 13 998,015,877 849,065,061 Other assets 14 19,971,809 9,486,749 Total Non-Current Assets 14,110,026,303 12,366,818,842 Total Assets 21,983,665,453 14,882,735,570 Director____________________________________ The notes to the consolidated and company financial statements on pages 9 to 25 form an integral part of these financial statements. Consolidated Notes 1999 1998 (Restated) Baht Baht LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Trade accounts payable 169,714,858 204,215,319 Current portion of long-term loans and debentures 15,16 1,838,636,484 2,174,252,900 Amounts due to related companies - 72,074,087 Other current liabilities Interest payable 220,141,383 143,218,419 Value added tax payable 122,124,439 173,813,832 Dividend payable 57,681,570 14,776,883 Others 182,408,092 280,462,899 Total Current Liabilities 2,590,706,826 3,062,814,339 Non-Current Liabilities Long-term loans 15 17,018,734,558 18,159,840,100 Debentures 16 13,469,817,743 9,128,644,783 Total Non-Current Liabilities 30,488,552,301 27,288,484,883 Total Liabilities 33,079,259,127 30,351,299,222 Minority Interest 17 56,470,331 49,412,136 Shareholders' Equity Share capital 18 Authorised share capital 5,300,000,000 5,300,000,000 Issued and paid-up share capital 5,242,711,000 5,227,092,000 Premium on share capital 18 8,557,422,000 8,526,184,000 Unrealised gain on investments in Marketable securities available for sales 41,144,318 - Retained earnings Appropriated Legal reserve 19 235,041,127 102,643,398 Unappropriated 2,686,041,146 856,256,389 Total Shareholders' Equity 16,762,359,591 14,712,175,787 Total Liabilities and Shareholders' Equity 49,898,089,049 45,112,887,145 The notes to the consolidated and company financial statements on pages 9 to 25 form an integral part of these financial statements. Company Notes 1999 1998 (Restated) Baht Baht LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Trade accounts payable - - Current portion of long-term loans and Debentures 15,16 - - Amounts due to related companies - - Other current liabilities Interest payable 78,904,109 - Value added tax payable - - Dividend payable 57,681,570 14,776,883 Others 84,720,183 155,782,900 Total Current Liabilities 221,305,862 170,559,783 Non-Current Liabilities Long-term loans 15 - - Debentures 16 5,000,000,000 - Total Non-Current Liabilities 5,000,000,000 - Total Liabilities 5,221,305,862 170,559,783 Minority Interest 17 - - Shareholders' Equity Share capital 18 Authorised share capital 5,300,000,000 5,300,000,000 Issued and paid-up share capital 5,242,711,000 5,227,092,000 Premium on share capital 18 8,557,422,000 8,526,184,000 Unrealised gain on investments in Marketable securities available for sales 41,144,318 - Retained earnings Appropriated Legal reserve 19 235,041,127 102,643,398 Unappropriated 2,686,041,146 856,256,389 Total Shareholders' Equity 16,762,359,591 14,712,175,787 Total Liabilities and Shareholders' Equity 21,983,665,453 14,882,735,570 The notes to the consolidated and company financial statements on pages 9 to 25 form an integral part of these financial statements. Electricity Generating Public Company Limited Statements of Income For the years ended 31 December Consolidated Notes 1999 1998 (Restated) Baht Baht Revenues Sales 4 8,438,147,036 8,765,772,167 Service income 103,340,800 36,526,202 Other income Interest income 718,445,839 1,328,057,408 Others 20 191,794,953 103,283,698 Total revenues 9,451,728,628 10,233,639,475 Expenses Cost of sales 4, 21 2,686,829,271 3,613,794,940 Cost of services 89,084,325 63,494,741 Administrative expenses 886,926,728 340,599,003 Interest expenses 2,984,141,090 3,301,690,437 Currency exchange losses (gains) 240,625,476 (3,231,544,438) Directors' remuneration 18,479,700 15,822,900 Total expenses 6,906,086,590 4,103,857,583 Operating profit 2,545,642,038 6,129,781,892 Shares of profit from subsidiaries and associates 8,457,958 72,812,258 Profit before tax 2,554,099,996 6,202,594,150 Income tax - (26,254,771) Profit before minority interest 2,554,099,996 6,176,339,379 Minority interest (93,854,574) (4,852,777) Net profit for the year 2,647,954,570 6,181,192,156 Basic earnings per share 23 Profit before minority interest 4.87 11.82 Minority interest (0.18) (0.01) Net profit for the year 5.05 11.83 Diluted earnings per share 23 Profit before minority interest 4.82 11.66 Minority interest (0.18) (0.01) Net profit for the year 5.00 11.67 The notes to the consolidated and company financial statements on pages 9 to 25 form an integral part of these financial statements. Company Notes 1999 1998 (Restated) Baht Baht Revenues Sales 4 - - Service income - - Other income Interest income 172,612,745 379,682,017 Others 20 183,838,879 88,464,767 Total revenues 356,451,624 468,146,784 Expenses Cost of sales 4, 21 - - Cost of services - - Administrative expenses 294,512,754 180,720,010 Interest expenses 78,904,109 - Currency exchange losses (gains) - - Directors' remuneration 7,027,200 5,545,600 Total expenses 380,444,063 186,265,610 Operating profit (23,992,439) 281,881,174 Shares of profit from subsidiaries and Associates 2,671,947,009 5,925,565,753 Profit before tax 2,647,954,570 6,207,446,927 Income tax - (26,254,771) Profit before minority interest 2,647,954,570 6,181,192,156 Minority interest - - Net profit for the year 2,647,954,570 6,181,192,156 Basic earnings per share 23 Profit before minority interest 5.05 11.83 Minority interest - - Net profit for the year 5.05 11.83 Diluted earnings per share 23 Profit before minority interest 5.00 11.67 Minority interest - - Net profit for the year 5.00 11.67 The notes to the consolidated and company financial statements on pages 9 to 25 form an integral part of these financial statements. Electricity Generating Public Company Limited Statements of Changes in Shareholders' Equity For the years ended 31 December Consolidated Notes 1999 1998 (Restated) Baht Baht Share Capital 18 Beginning balance 5,227,092,000 5,212,338,000 Increase during the year 15,619,000 14,754,000 Decrease during the year - - Ending balance 5,242,711,000 5,227,092,000 Premium on share capital 18 Beginning balance 8,526,184,000 8,496,676,000 Increase during the year 31,238,000 29,508,000 Decrease during the year - - Ending balance 8,557,422,000 8,526,184,000 Unrealised gain on investments In marketable Securities available for sales Beginning balance - - Increase during the year 41,144,318 - Decrease during the year - - Ending balance 41,144,318 - Retained earnings(deficit) Appropriated retained earnings Legal reserve 19 Beginning balance 102,643,398 19,792,680 Increase during the year 135,397,729 82,850,718 Decrease during the year - - Ending balance 235,041,127 102,643,398 Unappropriated retained earnings(deficit) - as previously reported 1,574,163,635 (4,412,022,769) - adjustment resulting from change in accounting policy with respect to the write - offs of deferred pre-operating expenses and other deferred expenses 2 (717,907,246) (830,062,280) - as restated 856,256,389 (5,242,085,049) Increase during the year 2,647,954,570 6,181,192,156 Decrease during the year (818,169,813) (82,850,718) Ending balance 2,686,041,146 856,256,389 Total shareholders' equity 16,762,359,591 14,712,175,787 The notes to the consolidated and company financial statements on pages 9 to 25 form an integral part of these financial statements. Company Notes 1999 1998 (Restated) Baht Baht Share Capital 18 Beginning balance 5,227,092,000 5,212,338,000 Increase during the year 15,619,000 14,754,000 Decrease during the year - - Ending balance 5,242,711,000 5,227,092,000 Premium on share capital 18 Beginning balance 8,526,184,000 8,496,676,000 Increase during the year 31,238,000 29,508,000 Decrease during the year - - Ending balance 8,557,422,000 8,526,184,000 Unrealised gain on investments In marketable Securities available for sales Beginning balance - - Increase during the year 41,144,318 - Decrease during the year - - Ending balance 41,144,318 - Retained earnings Appropriated retained earnings Legal reserve 19 Beginning balance 102,643,398 19,792,680 Increase during the year 135,397,729 82,850,718 Decrease during the year - - Ending balance 235,041,127 102,643,398 Unappropriated retained earnings(deficit) - as previously reported 1,574,163,635 (4,412,022,769) - adjustment resulting from change in accounting policy with respect to the write - offs of deferred pre-operating expenses and other deferred expenses 2 (717,907,246) (830,062,280) - as restated 856,256,389 (5,242,085,049) Increase during the year 2,647,954,570 6,181,192,156 Decrease during the year (818,169,813) (82,850,718) Ending balance 2,686,041,146 856,256,389 Total shareholders' equity 16,762,359,591 14,712,175,787 The notes to the consolidated and company financial statements on pages 9 to 25 form an integral part of these financial statements. Electricity Generating Public Company Limited Statements of Retained Earnings For the years ended 31 December Consolidted Notes 1999 1998 (Restated) Baht Baht Unappropriated retained earnings(deficit) Beginning balance - as previously reported 1,574,163,635 (4,412,022,769) - adjustment resulting from change in accounting policy with respect to the write - offs of deferred pre-operating expenses and other deferred expenses 2 (717,907,246) (830,062,280) - as restated 856,256,389 (5,242,085,049) Less: Appropriation - Legal reserve 19 (132,397,729) (82,850,718) - Dividends 24 (663,967,684) - Directors' bonus (21,804,400) - (818,169,813) (82,850,718) Net profit for the year 2,647,954,570 6,181,192,156 Unappropriated retained earnings at the end of the year 2,686,041,146 856,256,389 Appropriated retained earnings Legal reserve 235,041,127 102,643,398 Appropriated retained earnings at the end of the year 235,041,127 102,643,398 Retained earnings at the end of the year 2,921,082,273 958,899,787 The notes to the consolidated and company financial statements on pages 9 to 25 form an integral part of these financial statements. Company Notes 1999 1998 (Restated) Baht Baht Unappropriated retained earnings Beginning balance - as previously reported 1,574,163,635 (4,412,022,769) - adjustment resulting from change in accounting policy with respect to the write - offs of deferred pre-operating expenses and other deferred expenses 2 (717,907,246) (830,062,280) - as restated 856,256,389 (5,242,085,049) Less: Appropriation - Legal reserve 19 (132,397,729) (82,850,718) - Dividends 24 (663,967,684) - Directors' bonus (21,804,400) - (818,169,813) (82,850,718) Net profit for the year 2,647,954,570 6,181,192,156 Unappropriated retained earnings at the end of the year 2,686,041,146 856,256,389 Appropriated retained earnings Legal reserve 235,041,127 102,643,398 Appropriated retained earnings at the end of the year 235,041,127 102,643,398 Retained earnings at the end of the year 2,921,082,273 958,899,787 (more)