FINANCIAL STATEMENTS QUARTER 2

PHATRA LEASING PUBLIC COMPANY LIMITED INTERIM FINANCIAL STATEMENTS FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED MARCH 31, 1999 AND 1998 AND REPORT OF CERTIFIED PUBLIC ACCOUNTANT EXPRESSED IN Thai Baht REPORT OF CERTIFIED PUBLIC ACCOUNTANT To The Board of Directors of Phatra Leasing Public Company Limited I have made a review of the balance sheets of Phatra Leasing Public Company Limited as at March 31, 1999 and 1998, and the related statements of income, changes in shareholders' equity, retained earnings and cash flows for the three-month and six- month periods then ended, in accordance with standards established by the Institute of Certified Accountants and Auditors of Thailand. A review of interim financial statements consists principally of obtaining an understanding of the system for the preparation of interim financial statements, applying analytical review procedures to financial data, and making inquiries of persons responsible for financial and accounting matters. It 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 do not express such an opinion. Based on my review, I am not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with generally accepted accounting principles (in Thailand). PRASIT MUSIKABHANTU C.P.A. (THAILAND) Registration No. 2675 Bangkok April 22, 1999 "UNAUDITED" "REVIEWED" PHATRA LEASING PUBLIC COMPANY LIMITED BALANCE SHEETS MARCH 31, 1999 AND 1998 A S S E T S In Thousand Baht 1999 1998 CURRENT ASSETS Cash on hand and in banks (Note 2) 13,175 27,018 Short-term investment in promissory notes (Note 2) - 35,063 Leasing receivables under operating lease contracts (Notes 2 and 3) 60,579 49,369 Less allowance for doubtful accounts ( 36,086) ( 15,393) Leasing receivables under operating lease contracts - net 24,493 33,976 Receivables under finance lease contracts - net (Notes 2 and 4) 250,783 452,958 Less allowance for doubtful accounts ( 84,263) ( 25,993) Receivables under finance lease contracts - net 166,520 426,965 Other current assets Prepaid expenses (Note 2) 31,374 27,364 Receivable from Revenue Department 4,454 6,194 Advance payment for customers 3,753 7,313 Others (Note 2) 3,497 10,266 Total Current Assets 247,266 574,159 INVESTMENTS IN SHARES - At Cost Associated company (Notes 2 and 5) 245 245 Other company 5,000 5,000 Total Investments in Shares 5,245 5,245 "UNAUDITED" "REVIEWED" - 2 - In Thousand Baht 1999 1998 PROPERTY AND EQUIPMENT - Net (Note 6) 1,209,501 1,638,482 PROPERTY FORECLOSED - Net (Note 7) 58,072 40,129 OTHER ASSETS Deferred income tax - net 194,166 170,731 Other receivables - net of allowance for doubtful accounts of approximately Baht 58 million in 1999 and Baht 10 million in 1998 2,926 39,392 Others 8,458 7,740 Total Other Assets 205,550 217,863 TOTAL ASSETS 1,725,634 2,475,878 See accompanying Notes to Interim Financial Statements. "UNAUDITED" "REVIEWED" PHATRA LEASING PUBLIC COMPANY LIMITED BALANCE SHEETS MARCH 31, 1999 AND 1998 LIABILITIES AND SHAREHOLDERS EQUITY In Thousand Baht 1999 1998 CURRENT LIABILITIES Bank overdrafts and loans from financial institutions (Notes 2 and 8) 4,922 384,095 Accounts payable - trade 29,005 23,329 Current portion of long-term loans (Notes 2 and 10) 482,192 820,900 Short-term loans from and payables to related companies (Notes 2 and 9) 368,144 341,052 Other current liabilities Rental income received in advance (Note 2) 5,956 11,047 Accrued interest expense - 12,695 Others (Note 2) 3,428 9,844 Total Current Liabilities 893,647 1,602,962 LONG-TERM LOANS FROM RELATED COMPANIES - Net (Notes 2 and 10) 174,376 100,000 ADVANCE RECEIVED FROM LESSEES FOR EXERCISING PURCHASE OPTION (Notes 2 and 12) 73,142 104,297 Total Liabilities 1,141,165 1,807,259 SHAREHOLDERS' EQUITY Share capital - common share; Baht 10 par value Authorized, issued and fully paid-up - 30,000,000 shares 300,000 300,000 Premium on share capital 156,000 156,000 Retained earnings Appropriated for reserve fund (Note 13) 9,216 9,216 Unappropriated 119,253 203,403 Total Shareholders' Equity 584,469 668,619 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,725,634 2,475,878 See accompanying Notes to Interim Financial Statements. "UNAUDITED" "REVIEWED" PHATRA LEASING PUBLIC COMPANY LIMITED STATEMENTS OF INCOME FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED MARCH 31, 1999 AND 1998 In Thousand Baht Three months ended Six months ended March 31, 1999 March 31, 1998 March 31, 1999 March 31, 1998 REVENUES Rental income from operating lease contracts (Notes 1 and 2) 174,411 211,894 367,598 420,994 Income from finance lease contracts (Notes 1 and 2) 5,969 12,794 13,193 29,637 Other income Gain on sales of assets 2,766 16,447 3,136 20,780 Penalty income from delay payment 1,991 7,466 3,719 9,321 Others 1,773 2,620 4,756 5,014 Total Revenues 186,910 251,221 392,402 485,746 COSTS AND EXPENSES Direct rental costs 120,917 162,209 254,799 318,368 General and administrative expenses (Note 2) 19,433 31,619 34,570 80,002 Interest expense (Note 2) 32,266 55,985 78,037 117,547 Director' remuneration 144 216 210 288 Total Costs and Expenses 172,760 250,029 367,616 516,205 INCOME (LOSS) BEFORE INCOME TAX AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE 14,150 1,192 24,786 ( 30,459) Income Tax ( 4,300) - ( 7,505) - INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 9,850 1,192 17,281 ( 30,459) Cumulative Effect of Accounting Change (Note 1) - - - ( 38,000) NET INCOME (LOSS) 9,850 1,192 17,281 ( 68,459) Earnings (Loss) per Share (Baht) Income (loss) before cumulative effect of accounting change 0.33 0.04 0.58 ( 1.01 ) Cumulative effect of accounting change - - - ( 1.27) Net income (loss) 0.33 0.04 0.58 ( 2.28 ) See accompanying Notes to Interim Financial Statements. "UNAUDITED" "REVIEWED" PHATRA LEASING PUBLIC COMPANY LIMITED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED MARCH 31, 1998 AND 1999 In Thousand Baht Three months ended Six months ended March 31, 1999 March 31, 1998 March 31, 1999 March 31, 1998 Common Share Capital Balance, beginning of period 300,000 300,000 300,000 300,000 Addition - - - - Balance, end of period 300,000 300,000 300,000 300,000 Premium on Share Capital Balance, beginning of period 156,000 156,000 156,000 156,000 Addition - - - - Balance, end of period 156,000 156,000 156,000 156,000 Retained Earnings Appropriated Reserve Fund Balance, beginning of period 9,216 9,216 9,216 9,216 Addition - - - - Balance, end of period 9,216 9,216 9,216 9,216 Unappropriated Retained Earnings Balance, beginning of period 109,403 202,211 101,972 271,862 Addition (deduction) - net income (loss) 9,850 1,192 17,281 ( 68,459) Balance, end of period 119,253 203,403 119,253 203,403 TOTAL SHAREHOLDERS' EQUITY 584,469 668,619 584,469 668,619 See accompanying Notes to Interim Financial Statements. 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