FINANCIAL STATEMENTS QUARTER 1 BY PL

As at December 31, 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. DEBENTURES On December 13, 1999, the Company issued the unsecured, name registered, unsubordinated and no-Trustee debentures with face value of Baht 1,000 per unit for 350,000 units. The offering price is Baht 1,000 per unit totalling Baht 350 million by offering to the specific investors as specified in the Notification of Securities Exchange Commission. The said debentures are mature on December 13, 2001 and bear interest at the fixed rate of 8% p.a.. Interest will be paid semi-annually on June 13 and December 13 of each year. In connection with the terms of the rights and responsibilities of the debentures issuer. The Company, as the issuer, has to comply with certain restrictions and conditions as stipulated therein such as maintaining a certain financial ratio, etc. 11. LONG-TERM LOANS FROM RELATED COMPANIES In Thousand Baht 1999 1998 Loan from bank 344,028 743,372 Loan from an insurance company - 100,000 Total 334,028 843,372 Less portion due within one year ( 80,071) (541,531) Net 263,957 301,841 As at December 31, 1999, the Company has overdraft line and other credit facilities with a related local bank totalling Baht 609 million, which bear interest at the rates specified in the agreements (including overdraft line as discussed in Note 8). The Company entered into loan agreement with the said related local bank. The loan bears interest at the rate specified in the agreement and is repayable in installments at the amounts indicated in the agreement. The loan agreement contains certain conditions and restrictions which include, among others, maintaining certain financial ratios, etc.. Loan from a related insurance company amounted to Baht 100 million in 1998 (avaled by two local banks). The loan was scheduled to be repaid during December 1998 to November 1999 and bears interest at market rate. - 8 - 12. 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 under the Ministerial Regulation No. 162 (B.E. 2526) 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 by the Company for the three-month periods ended December 31, 1999 and 1998 amounted to Baht 0.3 million. 13. ASSETS HELD FOR LEASE As at December 31, 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 December 31 1999 1998 1999 - 578,182 2000 502,250 340,155 2001 319,580 167,719 2002 190,768 50,040 2003 80,791 481 2004 1,685 - Total 1,095,074 1,136,577 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 in advance as guarantee for exercising the purchase option. - 9 - As at December 31, 1999 and 1998, unguaranteed residual value of assets held for lease under finance lease contracts amounted to approximately Baht 19.2 million and Baht 38.0 million, respectively. 14. RESERVE FUND This represents the reserve which the Company has appropriated 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. 15. CONTINGENT LIABILITY As at December 31, 1999, the Company was contingently liable for letters of guarantee issued by a local bank amounting to approximately Baht 0.07 million. 16. DIVIDENDS At the ordinary shareholders' meeting on January 24, 2000, the shareholders approved the payment of dividends amounting to Baht 22.5 million (Baht 0.75 per share for 30 million shares). 17. RECLASSIFICATION OF ACCOUNTS Certain accounts in the 1998 financial statements were reclassified to conform with the 1999 financial statements presentation. 18. SEGMENT FINANCIAL INFORMATION The Company does not present the segment financial information in the financial statements since the Company engages in only the business on leasing assets under lease agreements. 19. UNCERTAINTIES OF ECONOMIC SITUATION The operations of the Company have been affected, and may continue to be affected for the foreseeable future, by the adverse economic conditions in Thailand and in the Asia Pacific region, including the volatile foreign exchange rates, slowdown in economic growth and the general deterioration of the economies of countries in the Asia Pacific region. Further, it is not possible to determine the future effect that a continuation of the economic crisis may have on the Company's liquidity and earnings. The accompanying financial statements do not include any adjustment that might result from these uncertainties. - 10 - 20. COMPUTER REMEDIATION PLAN FOR THE YEAR 2000 ("UNAUDITED AND UNREVIEWED") The Company has remedied all hardware and software for them to be in compliance with the Year 2000. But the Company still faces risks that other companies with whom the Company does business may be unsuccessful in their computer remediation projects within the time limit. However, the Company expects that the impact, if any, will not be significant to the Company's operations.