Management Discussion and Analysis 2007

the share transfer on January 30, 2007. In addition, income tax payable was down Baht 315 million due to a decrease of REGCO and KEGCO. Meanwhile, net liabilities in a joint venture increased by Baht 200 million from recognising NTPC's share of loss. 5.3 Shareholders' Equity Analysis As at December 31, 2007, Shareholders' Equity amounted to Baht 41,996 million, which was Baht 6,198 million or 17% higher than the amount as at December 31, 2006. This was due mainly to the following reasons: - the net profit in the consolidated financial statements that amounted to Baht 8,402 million. - at the Annual General Shareholders' meeting on April 23, 2007, it was unanimously resolved to pay dividends in respect of the operating results for the six-month period ended December 31, 2006 at Baht 2 per share, totaling Baht 1,053 million. These dividends were paid to shareholders on May 8, 2007. - the EGCO Board of Directors' meeting on August 25, 2007 approved to pay an interim dividend in respect of the operating results for the six-month period ended June 30, 2007 at Baht 2.25 per share, totaling Baht 1,185 million. These dividends were paid to shareholders on September 21, 2007. The analysis of the company's capital structure as at December 31, 2007 can be summarized as follows: Shareholders' equity was Baht 41,996 million or 78.35%. Liabilities were Baht 11,605 million or 21.65%. Important financial ratios were as follows: - Debt to equity ratio was 0.28 times, lower than 0.41 times at the end of 2006. - Book value per share was Baht 78.78, higher than Baht 67.03 at the end of 2006. 6. Report and Analysis of Cash Flow Position Cash Flow Statement shows the change in cash flows from operating activities, investing activities, and financing activities at the end of the accounting period, and indicates the ending balance of the cash and the cash equivalents. As at December 31, 2007, the ending balance of the cash and the cash equivalent was Baht 3,750 million, down Baht 1,851 million. The details of the sources and uses of funds are as follows: -Net cash received from operating activities totaled Baht 6,318 million. This was cash received from operating activities and working capital that amounted to Baht 5,236 million and Baht 1,082 million, respectively. -Net cash payment for investing activities was Baht 7,758 million. Cash payment for the investment in the additional shares in joint ventures amounted to Baht 2,330 million at GEC and Baht 3,258 million at BLCP; and, cash payment for the acquisition of shares in BLCP amounted to Baht 4,645 million. Meanwhile, the net cash inflow from dividend from joint ventures amounted to Baht 985 million and net cash from the short-term and long-term investments amounted to Baht 1,618 million. In addition, the cash receipt from repayment of shareholder's loan by GEC amounted to Baht 100 million and dividends of EASTW and the other open-end funds amounted to Baht 61 million and Baht 73 million, respectively. - Net cash payment for financing activities was Baht 411 million. The payment includes the loan repayment of KEGCO, EGCO Cogen and Roi-Et Green that totaled Baht 1,544 million and debenture repayment of KEGCO that totaled Baht 652 million. In addition, dividend payment to shareholders amounted to Baht 2,214 million. Meanwhile, EGCO drew down a long-term loan of Baht 4,000 million from a local bank on December 28,2007. In 2007, the analysis of the company's liquidity ratios is as follows : - Current ratio was 4.22 times, compared to 1.65 times in 2006 - Quick ratio was 2.26 times, compared to 1.18 times in 2006 Both ratios were higher than the ratios in 2006 due to the payment for shares acquisition in BLCP totaling Baht 4,645 million to CLP Power (BLCP) Ltd.