FINANCIAL STATUS AND OPERATING RESULT

1.  FINANCIAL STATEMENTS

 11.1.1 Summary of Auditor’s report

  Mr. Ruth Chaowanagawi of Ernst & Young was appointed to be the auditor
  of the Company, its subsidiary and the Company’s consolidated
  financial statements for the year ended December 31, 1999 and 2000.

  Miss Wanraya Puttasatiean of AMC Co.,Ltd. was appointed to be the
  auditor of the Company, its subsidiary and the Company’s consolidated
  financial statements for the year ended December 31, 2001.

  The summary of auditor’s report for 1999, 2000 and 2001 are as below;

1998. The auditor expressed his opinion in the auditor’s report on an
      unqualified basis.

1999. The auditor expressed his opinion in the auditor’s report on an
      unqualified basis.

2000. The auditor expressed his opinion in the auditor’s report on a
      qualified basis.

  The company recorded the undelivered sales of Baht 520 million and
  cost of Baht 488 million to a foreign related company in the 2001
  consolidated and company financial statements. As of December 31,2001,
  the company still supervised inventory sold and goods was kept in the
  company’s warehouse. The company has not yet received such merchandise
  repayment. However, the management confirmed that the ownership of
  goods was transferred to the buyer according to the purchase and sale
  agreement dated December 31,2001. The company’s legal counselor gave
  an opinion that the ownership of goods was transferred to the buyer at
  the agreement date despite of undelivered goods.

11.1.2 Financial Statements and Ratio Analysis

  -- ----------------- -- -------------- -------- -- -- ---------- -- -------- ---------- ---- -- -------- -- -- -- -- ---------- -------- -- ---------- --- -------- -- ---------- --------- -------- --
     CAPETRONIC                                                                                                                                                                                        
     INTERNATIONAL                                                                                                                                                                                     
     (THAILAND) PUBLIC                                                                                                                                                                                 
     COMPANY LIMITED                                                                                                                                                                                   

     AND ITS                                                                                                                                                                                           
     SUBSIDIARY                                                                                                                                                                                        
     COMPANY                                                                                                                                                                                           

     BALANCE SHEETS                                                                                                                                                                                    

     AS AT 31 DECEMBER                                                                                                                                                                                 

                                                                                                                                                                                    Unit :             
                                                                                                                                                                                    Million            
                                                                                                                                                                                    Baht               

                          CONSOLIDATED                                                                                 THE                                                                             
                                                                                                                       COMPANY                                                                         
                                                                                                                       ONLY                                                                            

                          1999                          2000                   2001                                    1999                   2000                       2001                          

                          Amount         %              Amount        %        Amount             %                    Amount     %           Amount         %           Amount               %        

     ASSETS                                                                                                                                                                                            

     CURRENT ASSETS                                                                                                                                                                                    

     Cash on hand and     30.94          0.53           71.51         1.26     73.95              1.67                 30.94      0.52        71.51          1.24        73.94                1.63     
     at banks                                                                                                                                                                                          

     Trade accounts       1.67           0.03           10.17         0.18     4.70               0.11                 1.67       0.03        10.17          0.18        4.70                 0.10     
     receivable - net                                                                                                                                                                                  

     Trade accounts       3,293.84       56.56          3,376.02      59.59    3,923.17           88.85                3,293.84   55.45       3,376.02       58.33       3,923.17             86.45    
     receivable                                                                                                                                                                                        
     (net) - related                                                                                                                                                                                   
     parties                                                                                                                                                                                           

     Short-term loan      0.00           0.00           0.00          0.00     0.00               0.0                  120.62     2.03        125.71         2.17        124.84               2.75     
     to a subsidiary                                                                                                                                                                                   
     company                                                                                                                                                                                           

     Inventories - net    1,927.25       33.09          1,439.07      25.40    0.14               0.00                 1,927.25   32.44       1,439.07       24.86       0.14                 0.00     

     Other current        0.00           0.00           0.00          0.00     0.00               0.00                 0.00       0.00        0.00           0.00        0.00                 0.00     
     assets                                                                                                                                                                                            

     Advance payments     10.43          0.18           22.95         0.41     2.02               0.05                 10.43      0.18        22.96          0.40        2.02                 0.04     

     VAT refundable       43.17          0.74           45.91         0.81     3.78               0.09                 43.16      0.73        45.90          0.79        3.76                 0.08     

     Indemnity            0.00           0.00           173.72        3.07     0.00               0.00                 0.00       0.00        173.72         3.00        0.00                 0.00     
     receivable                                                                                                                                                                                        

     Other receivables    79.05          1.36           110.56        1.95     67.07              1.52                 79.05      1.33        110.56         1.91        67.07                1.48     

     Others               5.34           0.09           0.75          0.01     1.15               0.03                 5.34       0.09        0.73           0.01        1.15                 0.03     

     TOTAL CURRENT        5,391.69       92.58          5,251.31      92.68    4,075.98           92.32                5,512.30   92.80       5,376.36       92.89       4,200.79             92.57    
     ASSETS                                                                                                                                                                                            

     INVESTMENT IN        0.00           0.00           0.00          0.00     0.00               0.00                 0.00       0.00        0.00           0.00        0.00                 0.00     
     OTHER COMPANY -                                                                                                                                                                                   
     net                                                                                                                                                                                               

     PROPERTY, PLANT      431.47         7.41           413.68        7.30     338.25             7.66                 427.48     7.20        410.65         7.09        336.15               7.41     
     AND EQUIPMENT -                                                                                                                                                                                   
     net                                                                                                                                                                                               

     OTHER ASSETS         0.37           0.01           1.09          0.02     1.02               0.02                 0.37       0.01        1.09           0.02        1.02                 0.02     

     TOTAL ASSETS         5,823.53       100.00         5,665.43      100.00   4,415.25           100.00               5,940.15   100.00      5,788.10       100.00      4,537.96             100.00   

                                                                                                                                                                                                       
  -- ----------------- -- -------------- -------- -- -- ---------- -- -------- ---------- ---- -- -------- -- -- -- -- ---------- -------- -- ---------- --- -------- -- ---------- --------- -------- --

  -- ----------------- -- -------------- --------- -- -- ------ ------------ -- --------- ------ ------------ ---- -- --------- -- -- ------------ --------- -- ------------ --- --------- -- ------------ --------- ---------- --
     CAPETRONIC                                                                                                                                                                                                                 
     INTERNATIONAL                                                                                                                                                                                                              
     (THAILAND) PUBLIC                                                                                                                                                                                                          
     COMPANY LIMITED                                                                                                                                                                                                            

     AND ITS                                                                                                                                                                                                                    
     SUBSIDIARY                                                                                                                                                                                                                 
     COMPANY                                                                                                                                                                                                                    

     BALANCE SHEETS                                                                                                                                                                                                             
     (Continue)                                                                                                                                                                                                                 

     AS AT 31 DECEMBER                                                                                                                                                                                                          

                                                                                                                                                                                                           Unit :               
                                                                                                                                                                                                           Million              
                                                                                                                                                                                                           Baht                 

                          CONSOLIDATED                                                                                                THE COMPANY                                                                               
                                                                                                                                      ONLY                                                                                      

                          1999                           2000                             2001                                        1999                      2000                          2001                              

                          Amount         %                      Amount          %                Amount               %               Amount       %            Amount           %            Amount                 %          

     LIABILITIES AND                                                                                                                                                                                                            
     SHAREHOLDERS'                                                                                                                                                                                                              
     EQUITY                                                                                                                                                                                                                     

     CURRENT                                                                                                                                                                                                                    
     LIABILITIES                                                                                                                                                                                                                

     Trust receipts       0.20           0.00                   0.23            0.00             0.24                 0.01            0.21         0.00         0.23             0.00         0.24                   0.01       

     Trade accounts       3,344.11       57.42                  2,417.71        42.67            155.77               3.53            3,344.11     56.30        2,417.71         41.77        155.77                 3.43       
     payable                                                                                                                                                                                                                    

     Loan from related    0.00           0.00                   0.00            0.00             949.74               21.51           0.00         0.00         0.00             0.00         949.74                 20.93      
     company                                                                                                                                                                                                                    

     Other payable        0.00           0.00                   153.73          2.71             0.00                 0.00            0.00         0.00         153.73           2.66         0.00                   0.00       

     Current Portion      0.00           0.00                   0.00            0.00             0.00                 0.00            0.00         0.00         0.00             0.00         0.00                   0.00       
     of Long-Term                                                                                                                                                                                                               
     Liabilities                                                                                                                                                                                                                

     Other current        0.00           0.00                   0.00            0.00             0.00                 0.00            0.00         0.00         0.00             0.00         0.00                   0.00       
     liabilities                                                                                                                                                                                                                

     Warranty reserve     12.66          0.22                   293.38          5.18             62.26                1.41            12.66        0.21         293.38           5.07         62.26                  1.37       

     Accrued expenses     152.77         2.62                   136.31          2.41             98.89                2.24            152.76       2.57         136.30           2.35         98.88                  2.18       

     Others               4.03           0.07                   24.71           0.44             11.03                .0.25           4.00         0.07         24.70            0.43         11.02                  0.24       

     TOTAL CURRENT        3,513.77       60.34                  3,026.07        53.41            1,277.93             28.94           3,513.74     59.15        3,026.05         52.28        1,277.91               28.16      
     LIABILITIES                                                                                                                                                                                                                

     Long term            0.00           0.00                   0.00            0.00             0.00                 0.00            0.00         0.00         0.00             0.00         0.00                   0.00       
     liabilities net                                                                                                                                                                                                            
     of current                                                                                                                                                                                                                 
     portion                                                                                                                                                                                                                    

     Provision for                                                                                                                                                                                                              
     Diminution in                                                                                                                                                                                                              
     Value of                                                                                                                                                                                                                   
     Investments                                                                                                                                                                                                                

     In Subsidiary And    1,584.22       27.20                  1,869.25        32.99            2,055.66             46.56           1,700.87     28.63        1,991.94         34.41        2,178.39               48.00      
     Associated                                                                                                                                                                                                                 
     Companies                                                                                                                                                                                                                  

     TOTAL LIABILITIES    5,097.99       87.54                  4,895.32        86.41            3,333.59             75.50           5,214.61     87.79        5,017.99         86.69        3,456.30               76.16      

     SHAREHOLDERS'                                                                                                                                                                                                              
     EQUITY                                                                                                                                                                                                                     

     Issued and fully     3,303.02       56.72                  9,507.12        167.81           14,009.37            317.30          3,303.02     55.60        9,507.12         164.25       14,009.37              308.72     
     paid                                                                                                                                                                                                                       

     Capital surplus                                                                                                                                                                                                            

     Share premium        226.76         3.89                   (5,046.73)      (89.08)          (9,098.76)           (206.8)         226.76       3.82         (5,046.73)       (87.19)      (9,098.76)             (200.50)   
     (discount)                                                                                                                                                                                                                 

     Translation          (231.95)       (3.98)                 (459.67)        (8.11)           (556.42)             (12.60)         (231.95)     (3.90)       (459.67)         (7.94)       (556.42)               (12.26)    
     Adjustment                                                                                                                                                                                                                 

     Goodwill on          (987.79)       (16.96)                (987.79)        (17.44)          (987.79)             (22.37)         (987.79)     (16.63)      (987.79)         (17.07)      (987.79                (21.77)    
     acquisition                                                                                                                                                                                                                

     Retained earnings                                                                                                                                                                                                          

     Appropriated –       3.84           0.07                   3.84            0.07             3.84                 0.09            3.84         0.06         3.84             0.07         3.84                   0.08       
     statutory reserve                                                                                                                                                                                                          

     Unappropriated       (1,588.34)     (27.27)                (2,246.66)      (39.66)          (2,288.58)           (51.83)         (1,588.34)   (26.74)      (2,246.66)       (38.82)      (2,288.58)             (50.43)    
     (Deficit)                                                                                                                                                                                                                  

     TOTAL                725.54         12.46                  770.11          13.59            1,081.66             24.50           725.54       12.21        770.11           13.31        1,081.66               23.84      
     SHAREHOLDERS'                                                                                                                                                                                                              
     EQUITY                                                                                                                                                                                                                     

     TOTAL LIABILITIES    5,823.53       100.00                 5,665.43        100.00           4,415.25             100.00          5,940.15     100.00       5,788.10         100.00       4,537.96               100.00     
     AND SHAREHOLDERS'                                                                                                                                                                                                          
     EQUITY                                                                                                                                                                                                                     
  -- ----------------- -- -------------- --------- -- -- ------ ------------ -- --------- ------ ------------ ---- -- --------- -- -- ------------ --------- -- ------------ --- --------- -- ------------ --------- ---------- --

  ----------------------- -- -------------- --------- ----------- ------- -- -------- ---------- ------ -------- ------ -- ------------ ------ --------- ------ -- ----------- ------- -------- --------- ---------- -------- ------
  CAPETRONIC                                                                                                                                                                                                                  
  INTERNATIONAL                                                                                                                                                                                                               
  (THAILAND) PUBLIC                                                                                                                                                                                                           
  COMPANY LIMITED                                                                                                                                                                                                             

  AND ITS SUBSIDIARY                                                                                                                                                                                                          
  COMPANY                                                                                                                                                                                                                     

  STATEMENTS OF EARNINGS                                                                                                                                                                                                      

  FOR THE YEARS ENDED 31                                                                                                                                                                                                      
  DECEMBER                                                                                                                                                                                                                    

                                                                                                                                                                                                (Unit :                       
                                                                                                                                                                                                Million                       
                                                                                                                                                                                                Baht)                         

                             CONSOLIDATED                                                                                  THE COMPANY                                                                                        
                                                                                                                           ONLY                                                                                               

                             1999                     2000                            2001                                 1999                                    2000                                   2001                

                             Amount         %         Amount                 %        Amount            %                  Amount              %                   Amount              %                  Amount     %        

  REVENUES                                                                                                                                                                                                                    

  Sales                      11,319.16      99.90     11,958.78              96.616   5,429.62          96.88              11,319.17           99.90               11,958.78           99.06              5,429.62   96.88    

  Compensation from                         0.00      0.00        79.00               0.64       0.00            0.00                   0.00             0.00                  79.00            0.65                 0.00     0.00
  research and product                                                                                                                                                                                                        
  design received from                                                                                                                                                                                                        
  customer                                                                                                                                                                                                                    

  Exchange Gain/(Loss)       (3.57)         (0.03)    305.53                 2.47     52.53             0.94               0.00                0.00                0.00                0.00               52.53      0.94     

  Other income               11.40          0.10      35.12                  0.28     122.25            2.18               11.40               0.10                34.91               0.29               122.24     2.18     

  TOTAL REVENUES             11,327.00      100.01    12,378.43              100.00   5,604.40          100.00             11,330.57           100.00              12,072.69           100.00             5,604.39   100.00   

  EXPENSES                                                                                                                                                                                                                    

  Cost of sales              10,854.72      95.83     11,578.78              93.54    5,128.39          91.51              10,858.29           95.83               11,273.25           93.38              5,128.39   91.51    

  Fixed overhead cost and    315.99         2.79      288.67                 2.33     176.69            3.15               315.99              2.79                288.67              2.39               176.62     3.17     
  research & development                                                                                                                                                                                                      
  expenses                                                                                                                                                                                                                    

  General and                134.98         1.19      115.96                 0.94     79.36             1.42               112.97              1.00                134.57              1.12               78.37      1.40     
  administrative expenses                                                                                                                                                                                                     

  Organizational             0.00           0.00      25.09                  0.20     62.41             1.11               25.24               0.22                0.24                0.00               62.41      1.11     
  restructuring expenses                                                                                                                                                                                                      

  Penalty for late           3.61           0.03      250.16                 2.02     100.16            1.79               3.61                0.03                250.16              2.07               100.16     1.79     
  shipment and legal fee                                                                                                                                                                                                      

  Warranty expenses          89.10          0.79      420.18                 3.40     1.68              0.03               89.10               0.79                420.18              3.48               1.68       0.03     

  Stock obsolescence and     259.32         2.29      299.92                 2.42     7.38              0.13               259.32              2.29                299.92              2.48               7.38       0.13     
  usage                                                                                                                                                                                                                       

  Interest expenses          1.76           0.02      0.00                   0.00     0.00              0.00               1.76                0.02                0.00                0.00               0.00       0.00     

  Directors' remuneration    0.58           0.01      0.69                   0.01     0.60              0.01               0.58                0.01                0.69                0.01               0.60       0.01     

  TOTAL EXPENSES             11,660.06      102.94    12,979.45              104.86   5,556.67          99.15              11,666.86           102.97              12,667.68           104.93             5,556.61   99.15    

  OPERATING LOSS             (333.06)       (2.94)    (601.02)               (4.86)   47.73             0.85               (336.29)            (2.97)              (594.99)            (4.93)             47.78      0.85     

  SHARE OF LOSS FROM                                                                                                                                                                                                          
  SUBSIDIARY AND                                                                                                                                                                                                              
  ASSOCIATED COMPANIES                                                                                                                                                                                                        

  - Normal operations        (634.17)       (5.60)    (91.24)                (0.74)   (89.65)           (1.60)             (630.94)            (5.57)              (97.29)             (0.81)             (89.70)    (1.60)   

  - Exceptional item                                                                                                                                                                                                          

  Gain on disposal of        (170.05)       (1.50)    33.94                  0.27     0.00              0.00               (170.05)            (1.50)              33.94               0.28               0.00       0.00     
  fixed assets /                                                                                                                                                                                                              
  Restructuring cost                                                                                                                                                                                                          

                             (804.22)       (7.10)    (57.30)                (0.46    (89.65)           (1.60)             (800.99)            (7.07)              (63.35)             (0.53)             (89.70)    (1.60)   

  Earnings (Loss) before     (1,137.28)     (10.04)   (658.31)               (5.32)   (41.92)           (0.75)             (1,137.28)          (10.04)             (658.34)            (5.45)             (41.92)    (0.75)   
  minority interest                                                                                                                                                                                                           

  Net profit(loss)           (3.49)                   (1.40)                          (0.04)                               (3.49)                                  (1.40)                                 (0.04)              

  Weighted average number    325.60                   469.41                          1,188.78                             325.60                                  469.41                                 1,188.78            
  of ordinary shares                                                                                                                                                                                                          
  (million shares)                                                                                                                                                                                                            
  ----------------------- -- -------------- --------- ----------- ------- -- -------- ---------- ------ -------- ------ -- ------------ ------ --------- ------ -- ----------- ------- -------- --------- ---------- -------- ------

  ------------------------------- -- -------------- ------------ ------------ ---- --------- ------------ ------------ ------------
  CAPETRONIC INTERNATIONAL                                                                                             
  (THAILAND) PUBLIC COMPANY                                                                                            
  LIMITED                                                                                                              

  AND ITS SUBSIDIARY COMPANY                                                                                           

  STATEMENTS OF RETAINED EARNINGS                                                                                      

  FOR THE YEARS ENDED 31 DECEMBER                                                                                      

                                                                                   (Unit :                             
                                                                                   Million                             
                                                                                   Baht)                               

                                     CONSOLIDATED                                            Company Only              

                                     1999           2000         2001                        1999         2000         2001

  RETAINED EARNINGS –                                                                                                  
  unappropriated                                                                                                       

  BALANCE - beginning of year        (390.33)       (1,588.34)   (2,246.65)                  (390.33)     (1,588.34)   (2,246.65)
  (deficit), as previously report                                                                                      

  CUMULATIVE EFFECT OF THE CHANGE                                                                                      
  IN ACCOUNTING                                                                                                        

  POLICY RELATED TO PRE-OPERATING    (60.75)        0.00         0.00                        (60.75)      0.00         0.00
  EXPENSES                                                                                                             

  BALANCE - beginning of year        (451.08)       (1,588.34)   (2,246.65)                  (451.08)     (1,588.34)   (2,246.65)
  (deficit), as restated                                                                                               

  NET LOSS FOR THE YEAR              (1,137.27)     (658.31)     (41.92)                     (1,137.27)   (658.31)     (41.92)

  BALANCE - end of year (deficit)    (1,588.35)     (2,246.65)   (2,288.58)                  (1,588.35)   (2,246.65)   (2,288.58)

  RETAINED EARNINGS -                                                                                                  
  appropriated                                                                                                         

  Statutory reserve                  3.84           3.84         3.84                        3.84         3.84         3.84

  Balance - end of year,             3.84           3.84         3.84                        3.84         3.84         3.84
  appropriated                                                                                                         

  TOTAL RETAINED EARNINGS            (1,584.51)     (2,242.81)   (2,284.74)                  (1,584.51)   (2,242.81)   (2,284.74)
  (Deficit)                                                                                                            
  ------------------------------- -- -------------- ------------ ------------ ---- --------- ------------ ------------ ------------

  --------------- -------------------------- -------------- ------------ ---------- ------------ -- ---------- ------------ ---------- ------------ -- --
  CAPETRONIC                                                                                                                                           
  INTERNATIONAL                                                                                                                                        
  (THAILAND)                                                                                                                                           
  PUBLIC COMPANY                                                                                                                                       
  LIMITED                                                                                                                                              

  AND ITS                                                                                                                                              
  SUBSIDIARY                                                                                                                                           
  COMPANY                                                                                                                                              

  STATEMENTS OF                                                                                                                                        
  CASH FLOWS                                                                                                                                           

  FOR THE YEARS                                                                                                                                        
  ENDED 31                                                                                                                                             
  DECEMBER                                                                                                                                             

                                                                                    (Unit :                                                            
                                                                                    Million                                                            
                                                                                    Baht)                                                              

                                             CONSOLIDATED                                           THE                                                
                                                                                                    COMPANY                                            
                                                                                                    ONLY                                               

                                             1999           2000         2001                       1999       2000         2001                       

                                                                                                                                                       

  Cash flows from                                                                                                                                      
  (used in)                                                                                                                                            
  operating                                                                                                                                            
  activities                                                                                                                                           

  Net loss                                                  (1,137.27)   (658.31)   (41.92)                    (1,137.27)   (658.31)   (41.92)         

  Adjustments to                                                                                                                                       
  reconcile net                                                                                                                                        
  loss to net                                                                                                                                          
  cash                                                                                                                                                 

  provided by                                                                                                                                          
  (paid from)                                                                                                                                          
  operating                                                                                                                                            
  activities :-                                                                                                                                        

  Unrealized                                                0.00         0.00       32.37                      0.00         0.00       32.37           
  exchange gain                                                                                                                                        
  (loss)                                                                                                                                               

  Depreciation                                              111.77       101.15     91.68                      108.06       100.18     90.76           

  Increase                                                  10.01        0.00       0.22                       10.01        0.00       0.22            
  (decrease) in                                                                                                                                        
  allowance for                                                                                                                                        
  doubtful                                                                                                                                             
  accounts                                                                                                                                             

  Increase in                                               35.06        224.00     7.38                       35.06        224.00     7.38            
  allowance for                                                                                                                                        
  stock                                                                                                                                                
  obsolescence                                                                                                                                         

  Increase in                                               25.23        0.24       0.00                       25.24        0.23       0.00            
  allowance for                                                                                                                                        
  assets                                                                                                                                               
  impairment                                                                                                                                           

  Increase in                                               0.00         280.72     1.68                       0.00         280.72     1.68            
  warranty                                                                                                                                             
  reserve                                                                                                                                              

  Discount                                                  0.00         0.00       (89.98)                                            (89.98)         
  receive from                                                                                                                                         
  debt repayment                                                                                                                                       

  Gain on                                                   (0.12)       (0.62)     (0.33)                     (0.12)       (0.40)     (0.32)          
  disposal of                                                                                                                                          
  fixed assets                                                                                                                                         

  Share of                                                  0.00         0.00       0.00                       (3.23)       6.04       0.05            
  (profit) loss                                                                                                                                        
  from subsidiary                                                                                                                                      
  company                                                                                                                                              

  Share of loss                                             804.22       57.30      89.65                      804.22       57.30      89.65           
  from associated                                                                                                                                      
  companies                                                                                                                                            

                                             (151.10)       4.48         90.75                      (158.03)   9.76         89.89                      

  Decrease                                                                                                                                             
  (increase) in                                                                                                                                        
  operating                                                                                                                                            
  assets                                                                                                                                               

  Trade accounts                                            0.98         (8.50)     5.47                       0.98         (8.50)     5.47            
  receivable                                                                                                                                           

  Trade accounts                                            (956.44)     (82.18)    (575.99)                   (956.44)     (82.18)    (575.99)        
  receivable -                                                                                                                                         
  related parties                                                                                                                                      

  Inventories                                               (390.51)     264.18     1,509.59                   (390.51)     264.18     1,509.59        

  Other current                                             (57.92)      (216.55)   24.57                      (57.91)      (216.55)   24.57           
  assets                                                                                                                                               

  Increase                                                                                                                                             
  (decrease) in                                                                                                                                        
  operating                                                                                                                                            
  liabilities                                                                                                                                          

  Trade accounts                                            1,318.01     (772.66)   (2,228.89)                 1,318.00     (772.66)   (2,228.89)      
  payable                                                                                                                                              

  Accounts                                                  0.00         0.00       (153.73)                   0.00         0.00       (153.73)        
  Payable -                                                                                                                                            
  others                                                                                                                                               

  Accrual                                                   0.00         0.00       (27.91)                    0.00         0.00       (27.90)         
  Expenses                                                                                                                                             

  Other current                                             103.64       4.21       (25.53)                    103.70       4.23       (25.53)         
  liabilities                                                                                                                                          

  Net cash (used                                            (133.34)     (807.02)   (1,381.67)                 (140.21)     (801.72)   (1,382.52)      
  in) from                                                                                                                                             
  operating                                                                                                                                            
  activities                                                                                                                                           

  Cash flows from                                                                                                                                      
  used in                                                                                                                                              
  investing                                                                                                                                            
  activities                                                                                                                                           

  Decrease                                                  0.00         0.00       0.00                       6.87         (5.09)     0.87            
  (increase) in                                                                                                                                        
  short-term loan                                                                                                                                      
  to a subsidiary                                                                                                                                      
  co.                                                                                                                                                  

  Cash received                                             0.35         20.02      1.59                       0.35         19.80      1.59            
  from disposal                                                                                                                                        
  of fixed assets                                                                                                                                      

  Increase in                                               (84.04)      (103.00)   (17.52)                    (84.04)      (103.00)   (17.52)         
  fixed assets -                                                                                                                                       
  net                                                                                                                                                  

  Decrease                                                  0.11         (0.06)     0.05                       0.11         (0.06)     0.04            
  (increase) in                                                                                                                                        
  other assets                                                                                                                                         

  Net cash used                                             (83.58)      (83.04)    (15.88)                    (76.71)      (88.35)    (15.02)         
  in investing                                                                                                                                         
  activities                                                                                                                                           

                                                                                                                                                       

  Cash flows from                                                                                                                                      
  (used in)                                                                                                                                            
  financing                                                                                                                                            
  activities                                                                                                                                           

  Cash received                                             264.95       930.62     450.23                     264.95       930.62     450.23          
  from capital                                                                                                                                         
  increase                                                                                                                                             

  Increase                                                  (0.29)       0.03       0.00                       (0.29)       0.03       0.00            
  (decrease) in                                                                                                                                        
  bank overdrafts                                                                                                                                      
  and bank loans                                                                                                                                       

  Increase                                                  0.00         0.00       949.74                                             949.74          
  (decrease) in                                                                                                                                        
  loan from                                                                                                                                            
  related company                                                                                                                                      

  Decrease in                                               (74.00)      0.00       0.00                       (74.00)      0.00       0.00            
  long-term                                                                                                                                            
  liabilities                                                                                                                                          

  Net cash from                                             190.66       930.65     1,399.97                   190.66       930.65     1,399.97        
  financing                                                                                                                                            
  activities                                                                                                                                           

  Net increase                                              (26.26)      40.59      2.42                       (26.26)      40.58      2.42            
  (decrease) in                                                                                                                                        
  cash and cash                                                                                                                                        
  equivalents                                                                                                                                          

  Cash and cash                                             57.19        30.93      71.52                      57.19        30.93      71.51           
  equivalents at                                                                                                                                       
  beginning of                                                                                                                                         
  the year                                                                                                                                             

  Cash and cash                                             30.93        71.52      73.94                      30.93        71.51      73.94           
  equivalents at                                                                                                                                       
  end of the year                                                                                                                                      

                                                                                                                                                       
  --------------- -------------------------- -------------- ------------ ---------- ------------ -- ---------- ------------ ---------- ------------ -- --

  ------------------------ --------- -------------- ------------ --------- -- ---------- ------------ ---------
  CAPETRONIC INTERNATIONAL                                                                            
  (THAILAND) PUBLIC                                                                                   
  COMPANY LIMITED                                                                                     

  AND ITS SUBSIDIARY                                                                                  
  COMPANY                                                                                             

  RATIO ANALYSIS                                                                                      

  AS AT 31 DECEMBER                                                                                   

                                                                                                      

                                                                                                      

                                     CONSOLIDATED                             COMPANY                 
                                                                              ONLY                    

                                     1999           2000         2001         1999       2000         2001

  LIQUIDITY RATIO                                                                                     

  Current Ratio            (times)   1.53           1.74         3.19         1.57       1.78         3.29

  Quick Ratio              (times)   0.95           1.14         3.13         0.95       1.14         3.13

  Cash Flow Liquidity      (times)   (0.05)         (0.25)       (0.64)       (0.05)     (0.25)       (0.64)
  Ratio                                                                                               

  A/R Turnover (Avg)       (times)   4.01           3.58         1.48         4.01       3.58         1.48

  Average Collection       (days)    90             101          242          90         101          242
  Period (Avg)                                                                                        

  Inventory Turnover (Avg) (times)   6.20           6.88         7.13         6.21       6.70         7.13

  Inventory Turnover       (days)    58             52           51           58         54           51
  Period (Avg)                                                                                        

  A/P Turnover (Avg)       (times)   4.04           4.02         3.99         4.04       3.91         3.99

  A/P Payment Period       (days)    89             90           90           89         92           90

  Cash Cycle               (days)    59             63           203          59         62           203

                                                                                                      

  PROFITABILITY RATIO                                                                                 

  Gross Margin             (%)       4.10           3.18         5.55         4.07       5.73         5.55

  Net Profit               (%)       (10.04)        (5.32)       (0.75)       (10.04)    (5.45)       (0.75)

  Return to Shareholders'  (%)       (97.90)        (88.03)      (4.53)       (97.90)    (88.03)      (4.53)
  Equity                                                                                              

                                                                                                      

  EFFICIENCY RATIO                                                                                    

  Return on assets         (%)       (21.94)        (11.46)      (0.83)       (21.45)    (11.23)      (0.81)

  Return on fixed assets   (%)       (249.96)       (155.79)     (11.15)      (253.22)   (157.09)     (11.23)

  Assets Turnover          (times)   2.19           2.15         1.11         2.14       2.06         1.09

                                                                                                      

  FINANCIAL POLICY RATIO                                                                              

  Debt to Equity           (times)   7.03           6.36         3.08         7.19       6.52         3.20

  Interest Coverage        (times)   (188.77)       -            -            (190.61)   -            -

  Commitment Coverage      (times)   (155.49)       (2,557.50)   0.05         (156.99)   (2,531.79)   0.05

  Commitment Coverage      (times)   (61.34)        (3,434.14)   (1.45)       (64.55)    (3,411.56)   (1.46)
  (Cash Basis)                                                                                        

  Dividend Payout          (%)       0.00           0.00         0.00         0.00       0.00         0.00

                                                                                                      
  ------------------------ --------- -------------- ------------ --------- -- ---------- ------------ ---------