11. FINANCIAL STATUS AND OPERATING RESULT

    1.  FINANCIAL STATEMENTS

 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. The summary of auditor’s report for 1998, 1999
  and 2000 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 an
      unqualified basis.

  Financial Statements an 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                                                                            

                          1998                          1999                   2000                                    1998                   1999                       2000                          

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

     ASSETS                                                                                                                                                                                            

     CURRENT ASSETS                                                                                                                                                                                    

     Cash on hand and     57.19          1.26           30.94         0.53     71.51              1.26                 57.19      1.23        30.94          0.52        71.51                1.24     
     at banks                                                                                                                                                                                          

     Trade accounts       12.67          0.28           1.67          0.03     10.17              0.18                 12.67      0.27        1.67           0.03        10.17                0.18     
     receivable - net                                                                                                                                                                                  

     Trade accounts       2,337.40       51.45          3,293.84      56.56    3,376.02           59.59                2,337.40   50.13       3,293.84       55.45       3,376.02             58.33    
     receivable                                                                                                                                                                                        
     (net) - related                                                                                                                                                                                   
     parties                                                                                                                                                                                           

     Short-term loan      0.00           0.00           0.00          0.00     0.00               0.00                 127.49     2.73        120.62         2.03        125.71               2.17     
     to a subsidiary                                                                                                                                                                                   
     company                                                                                                                                                                                           

     Inventories - net    1,571.80       34.60          1,927.25      33.09    1,439.07           25.40                1,571.80   33.71       1,927.25       32.44       1,439.07             24.86    

     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     7.18           0.16           10.43         0.18     22.95              0.41                 7.18       0.15        10.43          0.18        22.96                0.40     

     VAT refundable       44.64          0.98           43.17         0.74     45.91              0.81                 44.62      0.96        43.16          0.73        45.90                0.79     

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

     Other receivables    21.90          0.48           79.05         1.36     110.56             1.95                 21.90      0.47        79.05          1.33        110.56               1.91     

     Others               6.35           0.14           5.34          0.09     1.40               0.02                 6.35       0.14        5.34           0.09        1.39                 0.02     

     TOTAL CURRENT        4,059.13       89.35          5,391.69      92.58    5,251.31           92.69                4,186.60   89.79       5,512.30       92.80       5,377.01             92.90    
     ASSETS                                                                                                                                                                                            

     INVESTMENT IN        5.00           0.11           0.00          0.00     0.00               0.00                 5.00       0.11        0.00           0.00        0.00                 0.00     
     OTHER COMPANY -                                                                                                                                                                                   
     net                                                                                                                                                                                               

     PROPERTY, PLANT      478.48         10.53          431.47        7.41     413.68             7.30                 470.78     10.10       427.48         7.20        410.65               7.09     
     AND EQUIPMENT -                                                                                                                                                                                   
     net                                                                                                                                                                                               

     OTHER ASSETS         0.48           0.01           0.37          0.01     0.44               0.01                 0.49       0.01        0.37           0.01        0.44                 0.01     

     TOTAL ASSETS         4,543.09       100.00         5,823.53      100.00   5,665.43           100.00               4,662.87   100.00      5,940.15       100.00      5,788.10             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                                                                                   

                          1998                           1999                             2000                                              1998                    1999                          2000                             

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

     LIABILITIES AND                                                                                                                                                                                                               
     SHAREHOLDERS'                                                                                                                                                                                                                 
     EQUITY                                                                                                                                                                                                                        

     CURRENT                                                                                                                                                                                                                       
     LIABILITIES                                                                                                                                                                                                                   

     Trust receipts       0.49           0.01                   0.20            0.00             0.23                 0.00                  0.49       0.01         0.21             0.00         0.23                   0.00      

     Trade accounts       2,026.10       44.60                  3,344.11        57.42            2,417.71             42.67                 2,026.10   43.45        3,344.11         56.30        2,417.71               41.77     
     payable                                                                                                                                                                                                                       

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

     Current Portion      37.00          0.81                   0.00            0.00             0.00                 0.00                  37.00      0.79         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     0.00           0.00                   12.66           0.22             293.38               5.18                  0.00       0.00         12.66            0.21         293.38                 5.07      

     Accrued expenses     60.96          1.34                   152.77          2.62             136.31               2.41                  60.96      1.31         152.76           2.57         136.30                 2.35      

     Others               3.68           0.08                   4.03            0.07             24.71                0.44                  3.58       0.08         4.00             0.07         24.70                  0.43      

     TOTAL CURRENT        2,128.23       46.85                  3,513.77        60.34            3,026.07             53.41                 2,128.13   45.64        3,513.74         59.15        3,026.05               52.28     
     LIABILITIES                                                                                                                                                                                                                   

                                                                                                                                                                                                                                   

     Long term            37.00          0.81                   0.00            0.00             0.00                 0.00                  37.00      0.79         0.00             0.00         0.00                   0.00      
     liabilities net                                                                                                                                                                                                               
     of current                                                                                                                                                                                                                    
     portion                                                                                                                                                                                                                       

     Provision for                                                                                                                                                                                                                 
     Diminution in                                                                                                                                                                                                                 
     Value of                                                                                                                                                                                                                      
     Investments                                                                                                                                                                                                                   

     In Subsidiary And    780.00         17.17                  1,584.22        27.20            1,869.25             32.99                 899.87     19.30        1,700.87         28.63        1,991.94               34.41     
     Associated                                                                                                                                                                                                                    
     Companies                                                                                                                                                                                                                     

     TOTAL LIABILITIES    2,945.23       64.83                  5,097.99        87.54            4,895.32             86.41                 3,065.00   65.73        5,214.61         87.79        5,017.99               86.69     

     SHAREHOLDERS'                                                                                                                                                                                                                 
     EQUITY                                                                                                                                                                                                                        

     Issued and fully     2,686.85       59.14                  3,303.02        56.72            9,507.12             167.81                2,686.85   57.62        3,303.02         55.60        9,507.12               164.25    
     paid                                                                                                                                                                                                                          

     Capital surplus                                                                                                                                                                                                               

     Share premium        577.97         12.72                  226.76          3.89             (5,046.73)           (89.08)               577.97     12.40        226.76           3.82         (5,046.73)             (87.19)   
     (discount)                                                                                                                                                                                                                    

     Translation          (231.93)       (5.11)                 (231.95)        (3.98)           (459.67)             (8.11)                (231.93)   (4.97)       (231.95)         (3.90)       (459.67)               (7.94)    
     Adjustment                                                                                                                                                                                                                    

     Goodwill on          (987.79)       (21.74)                (987.79)        (16.96)          (987.79)             (17.44)               (987.79)   (21.18)      (987.79)         (16.63)      (987.79)               (17.07)   
     acquisition                                                                                                                                                                                                                   

     Retained earnings                                                                                                                                                                                                             

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

     Unappropriated       (451.08)       (9.93)                 (1,588.34)      (27.27)          (2,246.66)           (39.66)               (451.07)   (9.67)       (1,588.34)       (26.74)      (2,246.66)             (38.82)   
     (Deficit)                                                                                                                                                                                                                     

     TOTAL                1,597.86       35.17                  725.54          12.46            770.11               13.59                 1,597.87   34.27        725.54           12.21        770.11                 13.31     
     SHAREHOLDERS'                                                                                                                                                                                                                 
     EQUITY                                                                                                                                                                                                                        

     TOTAL LIABILITIES    4,543.09       100.00                 5,823.53        100.00           5,665.43             100.00                4,662.87   100.00       5,940.15         100.00       5,788.10               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                                                                                               

                             1998                    1999                             2000                                   1998                                  1999                                    2000                 

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

  REVENUES                                                                                                                                                                                                                      

  Sales                      12,933.50      99.63    11,319.16              99.90     11,958.78           99.06              12,933.50          99.66              11,319.17           99.90               11,958.78   99.06    

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

  Exchange Gain              20.00          0.16     0.00                   0.01      0.00                0.00               20.00              0.15               0.00                0.00                0.00        0.00     

  Other income               27.54          0.21     11.40                  0.10      35.12               0.29               23.97              0.19               11.40               0.10                34.91       0.29     

  TOTAL REVENUES             12,981.04      100.00   11,330.56              100.01    12,072.90           100.00             12,977.47          100.00             11,330.57           100.00              12,072.69   100.00   

  EXPENSES                                                                                                                                                                                                                      

  Cost of sales              12,098.89      93.20    10,858.29              95.83     11,273.25           93.38              12,098.89          93.23              10,858.29           95.83               11,273.25   93.38    

  Fixed overhead cost and    314.84         2.43     315.99                 2.79      288.67              2.39               314.84             2.43               315.99              2.79                288.67      2.39     
  research & development                                                                                                                                                                                                        
  expenses                                                                                                                                                                                                                      

  General and                125.47         0.97     109.75                 0.97      140.82              1.17               130.87             1.01               112.97              1.00                134.57      1.12     
  administrative expenses                                                                                                                                                                                                       

  Loss on assets             0.00           0.00     25.24                  0.22      0.24                0.00               0.00               0.00               25.24               0.22                0.24        0.00     
  impairment                                                                                                                                                                                                                    

  Penalty for late           0.00           0.00     3.61                   0.03      250.15              2.07               0.00               0.00               3.61                0.03                250.16      2.07     
  shipment and legal fee                                                                                                                                                                                                        

  Warranty expenses          116.76         0.90     89.10                  0.79      420.17              3.48               116.76             0.90               89.10               0.79                420.18      3.48     

  Stock obsolescence and     86.08          0.66     259.32                 2.29      299.92              2.48               86.08              0.66               259.32              2.29                299.92      2.48     
  usage                                                                                                                                                                                                                         

  Interest expenses          17.52          0.14     1.76                   0.02      0.00                0.00               17.52              0.14               1.76                0.02                0.00        0.00     

  Directors' remuneration    1.20           0.01     0.58                   0.01      0.69                0.01               1.20               0.01               0.58                0.01                0.69        0.01     

  TOTAL EXPENSES             12,760.76      98.30    11,663.64              102.94    12,673.91           104.98             12,766.16          98.37              11,666.86           102.97              12,667.68   104.93   

  OPERATING LOSS             220.28         1.70     (333.08)               (2.94)    (601.01)            (4.98)             211.31             1.63               (336.29)            (2.97)              (594.99)    (4.93)   

  SHARE OF LOSS FROM                                                                                                                                                                                                            
  SUBSIDIARY AND                                                                                                                                                                                                                
  ASSOCIATED COMPANIES                                                                                                                                                                                                          

  - Normal operations        (168.83)       (1.30)   (634.17)               (5.60)    (91.24)             (0.76)             (159.86)           (1.23)             (630.94)            (5.57)              (97.29)     (0.81)   

  - Exceptional item                                                                                                                                                                                                            

  Gain on disposal of        (91.53)        (0.71)   (170.05)               (1.50)    33.94               0.28               (91.53)            (0.71)             (170.05)            (1.50)              33.94       0.28     
  fixed assets /                                                                                                                                                                                                                
  Restructuring cost                                                                                                                                                                                                            

                             (260.36)       (2.01)   (804.22)               (7.10)    (57.30)             (0.48)             (251.39)           (1.94)             (800.99)            (7.07)              (63.35)     (0.53)   

  Earnings (Loss) before     (40.08)        (0.31)   (1,137.30)             (10.04)   (658.31)            (5.45)             (40.08)            (0.31)             (1,137.28)          (10.04)             (658.34)    (5.45)   
  minority interest                                                                                                                                                                                                             

  Net profit(loss)           (0.15)                  (3.49)                           (1.40)                                 (0.15)                                (3.49)                                  (1.40)               

  Weighted average number    268.68                  325.60                           469.41                                 268.68                                325.60                                  469.41               
  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                    

                                     1998           1999         2000                        1998       1999         2000

  RETAINED EARNINGS -                                                                                                
  unappropriated                                                                                                     

  BALANCE - beginning of year        (291.95)       (390.33)     (1,588.34)                  (291.95)   (390.33)     (1,588.34)
  (deficit), as previously report                                                                                    

  CUMULATIVE EFFECT OF THE CHANGE    0.00           0.00         0.00                        0.00       0.00         0.00
  IN ACCOUNTING                                                                                                      

  POLICY RELATED TO PRE-OPERATING    (119.04)       (60.75)      0.00                        (119.04)   (60.75)      0.00
  EXPENSES                                                                                                           

  BALANCE - beginning of year        (410.99)       (451.08)     (1,588.34)                  (410.99)   (451.08)     (1,588.34)
  (deficit), as restated                                                                                             

  NET LOSS FOR THE YEAR              (40.08)        (1,137.27)   (658.31)                    (40.08)    (1,137.27)   (658.31)

  BALANCE - end of year (deficit)    (451.07)       (1,588.35)   (2,246.65)                  (451.07)   (1,588.35)   (2,246.65)

  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            (447.23)       (1,584.51)   (2,242.81)                  (447.23)   (1,584.51)   (2,242.81)
  (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                                            

                                               1998           1999       2000                                 1998      1999       2000                       

                                                                                                                                                              

  Cash flows from                                                                                                                                             
  (used in)                                                                                                                                                   
  operating                                                                                                                                                   
  activities                                                                                                                                                  

  Net loss                                                    (40.08)    (1,137.27)   (658.31)                          (40.08)    (1,137.27)   (658.31)      

  Adjustments to                                                                                                                                              
  reconcile net                                                                                                                                               
  loss to net cash                                                                                                                                            

  provided by (paid                                                                                                                                           
  from) operating                                                                                                                                             
  activities :-                                                                                                                                               

  Unrealized                                                  (20.00)    0.00         0.00                              (20.00)    0.00         0.00          
  exchange gain                                                                                                                                               
  (loss)                                                                                                                                                      

  Depreciation                                                120.00     111.77       101.15                            108.89     108.06       100.18        

  Increase                                                    1.47       10.01        0.00                              1.46       10.01        0.00          
  (decrease) in                                                                                                                                               
  allowance for                                                                                                                                               
  doubtful accounts                                                                                                                                           

  Write off of bad                                            0.00       0.00         0.00                              0.00       0.00         0.00          
  debt                                                                                                                                                        

  Increase in                                                 11.47      35.06        224.00                            11.47      35.06        224.00        
  allowance for                                                                                                                                               
  stock                                                                                                                                                       
  obsolescence                                                                                                                                                

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

  Increase in                                                 0.00       0.00         280.72                            0.00       0.00         280.72        
  warranty reserve                                                                                                                                            

  Gain on disposal                                            0.00       (0.12)       (0.62)                            (3.56)     (0.12)       (0.40)        
  of fixed assets                                                                                                                                             

  Share of (profit)                                           (3.56)     0.00         0.00                              (8.97)     (3.23)       6.04          
  loss from                                                                                                                                                   
  subsidiary                                                                                                                                                  
  company                                                                                                                                                     

  Share of loss                                               260.36     804.22       57.30                             260.36     804.22       57.30         
  from associated                                                                                                                                             
  companies                                                                                                                                                   

                                               329.67         (151.10)   4.48                                 309.58    (158.03)   9.76                       

  Decrease                                                                                                                                                    
  (increase) in                                                                                                                                               
  operating assets                                                                                                                                            

  Trade accounts                                              7.28       0.98         (8.50)                            7.21       0.98         (8.50)        
  receivable                                                                                                                                                  

  Trade accounts                                              585.23     (956.44)     (82.18)                           585.23     (956.44)     (82.18)       
  receivable -                                                                                                                                                
  related parties                                                                                                                                             

  Inventories                                                 (284.37)   (390.51)     264.18                            (284.37)   (390.51)     264.18        

  Other current                                               56.01      (57.92)      (216.55)                          55.65      (57.91)      (216.55)      
  assets                                                                                                                                                      

  Increase                                                    0.00       0.00         0.00                              0.00       0.00         0.00          
  (decrease) in                                                                                                                                               
  operating                                                                                                                                                   
  liabilities                                                                                                                                                 

  Trade accounts                                              (335.01)   1,318.01     (772.66)                          (331.55)   1,318.00     (772.66)      
  payable                                                                                                                                                     

  Trade accounts                                              (0.46)     0.00         0.00                              (0.46)     0.00         0.00          
  payable-related                                                                                                                                             
  parties                                                                                                                                                     

  Other current                                               (26.62)    103.64       4.21                              (26.54)    103.70       4.23          
  liabilities                                                                                                                                                 

  Net cash (used                                              331.73     (133.34)     (807.02)                          314.75     (140.21)     (801.72)      
  in) from                                                                                                                                                    
  operating                                                                                                                                                   
  activities                                                                                                                                                  

  Cash flows from                                                                                                                                             
  used in investing                                                                                                                                           
  activities                                                                                                                                                  

  Decrease                                                    0.00       0.00         0.00                              16.73      6.87         (5.09)        
  (increase) in                                                                                                                                               
  short-term loan                                                                                                                                             
  to a subsidiary                                                                                                                                             
  co.                                                                                                                                                         

  Cash received                                               4.24       0.35         20.02                             4.24       0.35         19.80         
  from disposal of                                                                                                                                            
  fixed assets                                                                                                                                                

  Increase in fixed                                           (116.22)   (84.04)      (103.00)                          (116.22)   (84.04)      (103.00)      
  assets - net                                                                                                                                                

  Decrease                                                    0.00       0.11         (0.06)                            0.00       0.11         (0.06)        
  (increase) in                                                                                                                                               
  other assets                                                                                                                                                

  Dividend received                                           0.00       0.00         0.00                              0.00       0.00         0.00          
  from assoicated                                                                                                                                             
  company                                                                                                                                                     

  Net cash used in                                            (111.98)   (83.58)      (83.04)                           (95.25)    (76.71)      (88.35)       
  investing                                                                                                                                                   
  activities                                                                                                                                                  

                                                                                                                                                              

  Cash flows from                                                                                                                                             
  (used in)                                                                                                                                                   
  financing                                                                                                                                                   
  activities                                                                                                                                                  

  Cash received                                               0.00       264.95       930.62                            0.00       264.95       930.62        
  from capital                                                                                                                                                
  increase                                                                                                                                                    

  Increase                                                    (239.04)   (0.29)       0.03                              (239.04)   (0.29)       0.03          
  (decrease) in                                                                                                                                               
  bank overdrafts                                                                                                                                             
  and bank loans                                                                                                                                              

  Decrease in                                                 (0.84)     (74.00)      0.00                              0.00       (74.00)      0.00          
  long-term                                                                                                                                                   
  liabilities                                                                                                                                                 

  Net cash from                                               (239.88)   190.66       930.65                            (239.04)   190.66       930.65        
  financing                                                                                                                                                   
  activities                                                                                                                                                  

  Net increase                                                (20.13)    (26.26)      40.59                             (19.54)    (26.26)      40.58         
  (decrease) in                                                                                                                                               
  cash and cash                                                                                                                                               
  equivalents                                                                                                                                                 

  Cash and cash                                               77.32      57.19        30.93                             76.73      57.19        30.93         
  equivalents at                                                                                                                                              
  beginning of the                                                                                                                                            
  year                                                                                                                                                        

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

                                                                                                                                                              

                    Interest                   18.33          1.94       0.00                                 18.33     1.94       0.00                       

                    Corporate Income Tax       0.03           0.01                    0.00                    0.03      0.01       0.00                       
  ----------------- -------------------------- -------------- ---------- ------------ ---------- --------- -- --------- ---------- ------------ ---------- -- --

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

  AND ITS SUBSIDIARY                                                                                 
  COMPANY                                                                                            

  RATIO ANALYSIS                                                                                     

  AS AT 31 DECEMBER                                                                                  

                                                                                                     

                                                                                                     

                                     CONSOLIDATED                              COMPANY               
                                                                               ONLY                  

                                     1998           1999       2000            1998       1999       2000

  LIQUIDITY RATIO                                                                                    

  Current Ratio            (times)   1.91           1.53       1.74            1.97       1.57       1.78

  Quick Ratio              (times)   1.13           0.95       1.14            1.13       0.95       1.14

  Cash Flow Liquidity      (times)   0.14           (0.05)     (0.25)          0.13       (0.05)     (0.25)
  Ratio                                                                                              

  A/R Turnover (Avg)       (times)   4.89           4.01       3.58            4.89       4.01       3.58

  Average Collection Perid (days)    74             90         101             74         90         101
  (Avg)                                                                                              

  Inventory Turnover (Avg) (times)   8.43           6.21       6.70            8.43       6.21       6.70

  Inventory Turnover       (days)    43             58         54              43         58         54
  Period (Avg)                                                                                       

  A/P Turnover (Avg)       (times)   5.52           4.04       3.91            5.52       4.04       3.91

  A/P Payment Period       (days)    65             89         92              65         89         92

  Cash Cycle               (days)    51             59         62              51         59         62

                                                                                                     

  PROFITABILITY RATIO                                                                                

  Gross Margin             (%)       6.45           4.07       5.73            6.45       4.07       5.73

  Net Profit               (%)       (0.31)         (10.04)    (5.45)          (0.31)     (10.04)    (5.45)

  Return to Shareholders'  (%)       (2.24)         (97.90)    (88.03)         (2.24)     (97.90)    (88.03)
  Equity                                                                                             

                                                                                                     

  EFFICIENCY RATIO                                                                                   

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

  Return on fixed assets   (%)       (8.34)         (249.96)   (155.79)        (8.57)     (253.22)   (157.09)

  Assets Turnover          (times)   2.70           2.19       2.10            2.64       2.14       2.06

                                                                                                     

  FINANCIAL POLICY RATIO                                                                             

  Debt to Equity           (times)   1.84           7.03       6.36            1.92       7.19       6.52

  Interest Coverage        (times)   13.57          (188.77)   - 0 -           13.06      (190.61)   - 0 -

  Commitment Coverage      (times)   2.37           (155.49)   (2,557.50)      2.28       (156.99)   (2,531.79)

  Commitment Coverage      (times)   3.77           (61.34)    (3,434.14)      3.59       (64.55)    (3,411.56)
  (Cash Basis)                                                                                       

  Divident Payout          (%)       0.00           0.00       0.00            0.00       0.00       0.00

                                                                                                     

  PER SHARE                                                                                          

  Par Value                Baht      10.00          10.00      10.00           10.00      10.00      10.00

  Book Value               Baht      5.95           2.23       1.64            5.95       2.23       1.64

  Earning Per share        Baht      (0.15)         (3.49)     (1.40)          (0.15)     (3.49)     (1.40)

  Dividend per share       Baht      0.00           0.00       0.00            0.00       0.00       0.00

                                                                                                     

  GROWTH RATE                                                                                        

  Total assets             (%)       (10.28)        28.18      (2.71)          (9.93)     27.39      (2.56)

  Total liabilities        (%)       (4.22)         73.09      (3.98)          (3.86)     70.13      (3.77)

  Sales                    (%)       (24.29)        (12.48)    5.65            14.21      (12.48)    5.65

  Operating expenses       (%)       (22.27)        (8.60)     8.66            21.96      (8.61)     8.58

  Net profit (loss)        (%)       (105.48)       2,737.28   (42.11)         (105.48)   2,737.28   (42.11)
  ------------------------ --------- -------------- ---------- ------------ -- ---------- ---------- ------------

1.  MANAGEMENT’S STATEMENT AND ANALYSIS

  1) Capital Structure Appropriateness, Liquidity, Quality of Assets,
  Profitability and Efficiency

  The Company’s debt to equity ratio was 1.84 times and 7.03 times in
  1998 and 1999 respectively.

  Debt to equity ratio increased to 7.03 times in 1999 because of the
  following reasons;

-   Trade account payable increased from Baht 2,026 million in 1998 to
    Baht 3,344 million in 1999 as a consequence of extended credit term
    for 30 days longer.

-   The Company recorded 50% share of loss from associated companies,
    which were the normal operation losses and the restructuring costs
    incurred in the transfer of production from Taiwan to Thailand.

  .

  The Company increased its share capital in significant amount during
  the year 2000. As a result, from the capital adequacy standpoint, the
  Company’s debt to equity ratio was at a better position in 2000 (6.36
  times) even though the Company has incurred loss during the year.

  The Company had no liquidity problem. The current ratio was maintained
  at the consistent level at 1.91, 1.53 and 1.74 times in 1998, 1999 and
  2000 respectively.

  From operating cash flow perspective, the Company was continuing to
  maintain the cash cycle for 2000 as 1999. According to highly
  competitive business, the average collection period had increased as
  compared to 1998 and 1999 (74 days, 90 days and 101 days in 1998, 1999
  and 2000 respectively). However, as part of the Company’s strategy,
  the inventory turnover in 2000 was reduced as compared to 1999 (58
  days in 1999 and 54 days in 2000) and inventory level in 2000 was
  reduced approximately 25.32% from 1999. Therefore, the cash cycle was
  maintain at 62 days same as usual in last year (59 days).

  Considering the operating results and efficiency, it was improved from
  last year. The Company had loss of Baht 658 million or -5.45% to sales
  reduced from that in 1999 at Baht 1,137 million loss of –1.04%.

  2) Reason for the fluctuations of transactions or significant
  financial ratio

  In 2000, The Company and its subsidiary’s sales were Baht 11,959
  million, 5.65% higher than the prior year. The sales quantity in 2000
  was increased 121K units compared to 1999, however, the sales value
  increase according to the market demand on the bigger size (19”, 21”)
  with higher average selling price (increase 12% from 1999) together
  with the weakening of Thai Baht against the US Dollar.

  In 2000, The Company operating results were improved from prior year
  with approximately Baht 479 million mainly from the following reasons:

1.  The company changed strategy in the second half of year 2000 by
    slowing down the non-profitable product of shadow mask and LCD and
    as a result, the gross profit was increased from 4.07% in 1999 to
    5.73% in 2000.

2.  The significant reduction (Baht 747 million) in share of loss from
    subsidiary and associated companies due to the management’s decision
    to close the Taiwan factory at the end of 1999.

  Even though the operating results in 2000 was better than 1999 but
  company still incurred a loss, mainly attributable to the following
  reasons:

1.  Worldwide shortage of semiconductor parts caused production
    interruption.

2.  There was additional provision for stock obsolescence as a
    consequence of delayed shipments as customer cancelled orders.

3.  There were various engineering change to overcome semiconductor and
    the management increased warranty provisions for prudence.

  3) Extraordinary items or transaction which are not derived from
  normal course of business and has significant impact to the financial
  status and performance.

1998. The Company recorded Baht 92 million share of loss from its
      associated companies which is classified as exception item. This
      item is the costs of restructuring one of the Company’s associated
      companies.

1999. The Company recorded Baht 170 million share of loss from its
      subsidiary and associated companies classified as exception item.
      This item is the costs of restructuring one of the Company’s
      associated companies in order to transfer the production from
      Taiwan and Thailand factory.

2000. The Company recorded Baht 33 million share of profit from its
      subsidiary and associated companies classified as exceptional
      items. This item is the gain on disposal of fixed assets of
      associated company.

4)  Significant subsequent event

  - None -