) FINANCIAL STATEMENTS QUARTER 3 (AS OF JUNE 30,1999)

- 7 - 8. BANK OVERDRAFTS AND LOANS FROM FINANCIAL INSTITUTIONS In Thousand Baht 1999 1998 Bank overdrafts 985 1,777 Notes payables - 200,000 Loan from bank - 198,649 Total 985 400,426 As at June 30, 1999, the Company has overdraft line and other credit facilities with a related local bank totalling Baht 1,435 million, which bear interest at the rates specified in the agreements. 9. SHORT-TERM LOANS FROM AND PAYABLES TO RELATED COMPANIES In Thousand Baht 1999 1998 Short-term loans 294,000 254,000 Insurance premium payable 2,953 2,794 Accrued interest on short-term loans 3,711 5,153 Accrued interest on long-term loans 4,079 - Total 304,743 261,947 As at June 30, 1999, the Company has credit facilities with two related insurance companies totalling Baht 500 million which bear interest at market rate. The above short-term loans are avaled by various local banks. 10. LONG-TERM LOANS FROM RELATED COMPANIES In Thousand Baht 1999 1998 Loans from banks 602,079 820,900 Loan from an insurance company 60,000 100,000 Total 662,079 920,900 Less portion due within one year (574,994) (860,900) Net 87,085 60,000 - 8 - The Company entered into loan and credit facility agreement with a related local bank (Note 8) totalling Baht 1,352 million which bears interest at the rate specified in the agreement and is repayable in installments at the amounts indicated in the agreement commencing from August 1998. The loan agreement contains certain conditions and restrictions which include, among others, maintaining certain financial ratios, etc.. The Company also entered into a loan agreement with the related local bank mentioned above (Note 8) amounting to Baht 202 million which bears interest at the rate specified in the agreement. This loan is repayable in monthly installments. Loan from a related insurance company (Note 9) amounted to Baht 100 million in 1998 (avaled by two local banks). The loan is repaid commencing from December 1998 to November 1999 and bears interest at market rate. 11. EMPLOYEES' PROVIDENT FUND The Company established a contributory employees' provident fund for its employees in accordance with the terms and conditions prescribed in the Ministerial Regulation No. 162 (B.E. 2526) issued under the Revenue Code Governing Provident Funds. Membership is voluntary upon attaining permanent status. The Company contributes to the fund monthly at a certain percentage of the employees' basic salaries. On June 26, 1990, the provident fund was registered with the Ministry of Finance as a juristic entity under the provisions of the Provident Fund Act B.E. 2530. The Ministry of Finance also approved the transfer of the cumulative amount of the contributory employees' provident fund to the registered fund. The fund is managed by a Fund Manager in accordance with the terms and conditions prescribed in the Ministerial Regulation No. 2 (B.E. 2532) issued under the Provident Fund Act. B.E. 2530. Total contributions of the Company for the three-month and nine-month periods ended June 30, 1999 amounted to approximately Baht 0.3 million and Baht 1.0 million, respectively, and for the three-month and nine-month periods ended June 30, 1998 amounted to approximately Baht 0.3 million and Baht 1.0 million, respectively. - 9 - 12. ASSETS HELD FOR LEASE As at June 30, 1999 and 1998, the Company had a schedule by years of minimum future rentals for the next five years of assets held for operating lease as follows: In Thousand Baht Year ending March 31 1999 1998 1998 - 692,934 1999 514,725 435,976 2000 299,518 204,395 2001 161,474 64,863 2002 51,175 599 2003 1,309 - Total 1,028,201 1,398,767 Under the provisions of certain lease agreements, the lessees have an option to purchase the leased assets upon the expiration of the lease terms. In this connection, the lessees are required to pay the sums as guarantee for exercising the purchase option in advance. As at June 30, 1999 and 1998, unguaranteed residual value of assets held for lease under finance lease contracts amounted to approximately Baht 28.9 million and Baht 43.9 million, respectively. 13. RESERVE FUND This represents the reserve which the Company appropriates under the provisions of the Limited Public Company Act which require the Company to appropriate at least 5% of its annual net income after deduction of the deficit brought forward (if any) as reserve fund until the reserve reaches 10% of authorized share capital. The reserve is not available for dividend distribution. 14. CONTINGENT LIABILITY As at June 30, 1999, the Company was contingently liable for letter of guarantee issued by a local bank amounting to approximately Baht 0.3 million. 15. RECLASSIFICATION OF ACCOUNTS Certain accounts in the 1998 interim financial statements were reclassified to conform with the 1999 interim financial statement presentation. - 10 - 16. COMPUTER REMEDIATION PLAN FOR THE YEAR 2000 (UNAUDITED/UNREVIEWED) As at June 30, 1999, the Company had installed the computer system in connection with the storage and data processing in order to deal with the effect of the Year 2000 issues for the most part except for certain functions relating to the transmatching and data back up file which are being upgraded. The estimated cost of the said upgrade amounted to approximately Baht 2.0 million, which will be recorded in the period incurred. It is expected that the computer remediation plan is completed on time. The Company still faces risks that other companies with whom the Company does business may be unsuccessful in their computer remedy projects within the time limit. However, the Company expects that the impact, if any, will not be significant to the Company's operations. 17. SEGMENT FINANCIAL INFORMATION The Company does not present the segment financial information in the interim financial statements since the Company engages in only the business on leasing assets under lease agreements. 18. UNCERTAINTIES OF ECONOMIC SITUATION Many Asia Pacific countries and Thailand have been encountering with severe economic difficulties relating to currency devaluations and slowdown in growth. The operations of the Company have been significantly affected, and will continue to be affected for the foreseeable future, by the region's unstable economy. As a result, there are significant uncertainties that may affect future operations, the recoverability of the Company's assets and the Company's ability to repay its debts as they mature. The ultimate outcome of this matter cannot presently be determined. The financial statements do not include any adjustment that might result from these uncertainties. Related effects will be reported in the financial statements as they become known and estimable.