12. Financial status and performance

12.1 Auditors

Auditors of The company and its subsidiary Mr. Virach Apimathumrong

( Certified Public Account Register No. 1378 )

Mr. Chaiyakorn Anpitipongasa

  ( Certified Public Account Register No. 3196 )

Dr. Virach & Associates Report of auditors for the past 3 years --
unconditional report -

12.2 Performance of the Company and its subsidiary for the past 3 years

Eastern Wire Public Company Limited and its subsidiary

+----------------------+-------+------+---+--------+------+---+------+------+
|                      | 2000  |      | 1 |        |      |   | 1998 |      |
|                      |       |      | 9 |        |      |   |      |      |
|                      |       |      | 9 |        |      |   |      |      |
|                      |       |      | 9 |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
|  Particular          | Value | Co   | V |        | Co   | ม |      | Co   |
|                      |       | mmon | a |        | mmon | ูล |      | mmon |
|                      | (Mil  | Size | l |        | Size | ค |      | Size |
|                      | lion) |      | u |        |      | ่า |      |      |
|                      |       | (%)  | e |        | (%)  |   |      | (%)  |
|                      | Baht  |      |   |        |      | ( |      |      |
|                      |       |      | ( |        |      | M |      |      |
|                      |       |      | M |        |      | i |      |      |
|                      |       |      | i |        |      | l |      |      |
|                      |       |      | l |        |      | l |      |      |
|                      |       |      | l |        |      | i |      |      |
|                      |       |      | i |        |      | o |      |      |
|                      |       |      | o |        |      | n |      |      |
|                      |       |      | n |        |      | ) |      |      |
|                      |       |      | ) |        |      |   |      |      |
|                      |       |      |   |        |      | B |      |      |
|                      |       |      | B |        |      | a |      |      |
|                      |       |      | a |        |      | h |      |      |
|                      |       |      | h |        |      | t |      |      |
|                      |       |      | t |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Statement of Imcome  |       |      |   |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Sales                | 287   | 100  |   | 344.39 | 10   | 6 |      | 10   |
|                      |       |      |   |        | 0.00 | 3 |      | 0.00 |
|                      |       |      |   |        |      | 3 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 5 |      |      |
|                      |       |      |   |        |      | 3 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Other Income         | 8.53  | 2.97 |   | 35.35  | 1    | 1 |      | 2    |
|                      |       |      |   |        | 0.26 | 6 |      | 5.71 |
|                      |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 8 |      |      |
|                      |       |      |   |        |      | 7 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Total revenues       | 2     | 10   |   | 379.74 | 11   | 7 |      | 12   |
|                      | 95.53 | 2.97 |   |        | 0.26 | 9 |      | 5.71 |
|                      |       |      |   |        |      | 6 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 4 |      |      |
|                      |       |      |   |        |      | 0 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Cost of Sales        | 2     | 9    |   | 294.96 | 8    | 5 |      | 9    |
|                      | 69.02 | 3.74 |   |        | 5.65 | 9 |      | 4.21 |
|                      |       |      |   |        |      | 6 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 8 |      |      |
|                      |       |      |   |        |      | 6 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Selling and          | 93.40 | 3    |   | 165.38 | 4    | 1 |      | 2    |
| Administrative       |       | 2.54 |   |        | 8.02 | 7 |      | 8.33 |
| Expenses             |       |      |   |        |      | 9 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 4 |      |      |
|                      |       |      |   |        |      | 5 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Interest Expenses    | 1     | 6    |   | 254.15 | 7    | 2 |      | 4    |
|                      | 85.40 | 4.60 |   |        | 3.80 | 6 |      | 2.56 |
|                      |       |      |   |        |      | 9 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 6 |      |      |
|                      |       |      |   |        |      | 2 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Bad Debts and        | (1    | (5   |   | (      | (13  | 1 |      | 2    |
| Allowance for        | 6.07) | .60) |   | 47.25) | .72) | 7 |      | 8.13 |
| Doubtful Account     |       |      |   |        |      | 8 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | 2 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Loss of Exchange     | 26.22 | 9.14 |   | 6.65   | 1.93 | - |      | -    |
| Rate                 |       |      |   |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Loss of Provision    | 79.99 | 2    |   | 123.34 | 3    | - |      | -    |
| for Impairment of    |       | 7.87 |   |        | 5.81 |   |      |      |
| Assets               |       |      |   |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Directors’           | 1.12  | 0.39 |   | 1.95   | 0.57 | - |      | -    |
| Remuneration         |       |      |   |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Total Loss           | 6     | 22   |   | 799.18 | 23   | 1 |      | 19   |
|                      | 39.08 | 2.67 |   |        | 2.06 | , |      | 3.22 |
|                      |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | 4 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 1 |      |      |
|                      |       |      |   |        |      | 2 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Extraordinary Item   | 8.88  | 3.09 |   | -      | -    | - |      | -    |
+----------------------+-------+------+---+--------+------+---+------+------+
| Net Loss             | (33   | (116 |   | (4     | (121 | ( |      | (67  |
|                      | 4.67) | .61) |   | 19.45) | .80) | 4 |      | .51) |
|                      |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | 7 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 7 |      |      |
|                      |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | ) |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Net Loss per share   | 18.66 | -    |   | (      | -    | ( |      | -    |
|                      |       |      |   | 23.38) |      | 2 |      |      |
|                      |       |      |   |        |      | 3 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 8 |      |      |
|                      |       |      |   |        |      | 5 |      |      |
|                      |       |      |   |        |      | ) |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Balance Sheet        |       |      |   |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Cash on Hand and at  | 1     | 1    |   | 49.51  | 5.48 | 1 |      | 1    |
| Banks                | 37.35 | 9.11 |   |        |      | 7 |      | 1.77 |
|                      |       |      |   |        |      | 4 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 6 |      |      |
|                      |       |      |   |        |      | 1 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Short-Term           | 35.00 | 4.87 |   | 216.91 | 2    | 2 |      | 1    |
| Investment           |       |      |   |        | 4.00 | 0 |      | 3.60 |
|                      |       |      |   |        |      | 1 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 6 |      |      |
|                      |       |      |   |        |      | 8 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Trade Account and    | 79.45 | 1    |   | 68.76  | 7.61 | 1 |      | 1    |
| Note Receivable      |       | 1.06 |   |        |      | 5 |      | 0.45 |
|                      |       |      |   |        |      | 4 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 8 |      |      |
|                      |       |      |   |        |      | 8 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Net Inventories      | 56.37 | 7.85 |   | 48.39  | 5.35 | 1 |      | 8.01 |
|                      |       |      |   |        |      | 1 |      |      |
|                      |       |      |   |        |      | 8 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 8 |      |      |
|                      |       |      |   |        |      | 3 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Other Current Assets | 16.83 | 2.34 |   | 12.47  | 1.38 | 1 |      | 0.77 |
|                      |       |      |   |        |      | 1 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 4 |      |      |
|                      |       |      |   |        |      | 6 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Total Current Assets | 3     | 4    |   | 396.04 | 4    | 6 |      | 4    |
|                      | 25.00 | 5.23 |   |        | 3.82 | 6 |      | 4.60 |
|                      |       |      |   |        |      | 1 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 4 |      |      |
|                      |       |      |   |        |      | 7 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Property, Plant and  | 3     | 4    |   | 487.71 | 5    | 6 |      | 4    |
| Equipment            | 30.81 | 6.05 |   |        | 3.97 | 5 |      | 3.94 |
|                      |       |      |   |        |      | 1 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 6 |      |      |
|                      |       |      |   |        |      | 1 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Other Assets         | 62.57 | 8.71 |   | 19.95  | 2.21 | 1 |      | 1    |
|                      |       |      |   |        |      | 7 |      | 1.46 |
|                      |       |      |   |        |      | 0 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 0 |      |      |
|                      |       |      |   |        |      | 5 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Total Assets         | 7     | 100  |   | 903.70 | 10   | 1 |      | 10   |
|                      | 18.39 |      |   |        | 0.00 | , |      | 0.00 |
|                      |       |      |   |        |      | 4 |      |      |
|                      |       |      |   |        |      | 8 |      |      |
|                      |       |      |   |        |      | 3 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 1 |      |      |
|                      |       |      |   |        |      | 2 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Bank Overdrafts and  | 9     | 12   |   | 1,     | 12   | 1 |      | 7    |
| Loans                | 06.86 | 6.23 |   | 150.99 | 7.36 | , |      | 3.15 |
|                      |       |      |   |        |      | 0 |      |      |
|                      |       |      |   |        |      | 8 |      |      |
|                      |       |      |   |        |      | 4 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 9 |      |      |
|                      |       |      |   |        |      | 0 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Trade Accounts       | 24.06 | 3.35 |   | 18.30  | 2.02 | 1 |      | 7.80 |
| Payable              |       |      |   |        |      | 1 |      |      |
|                      |       |      |   |        |      | 5 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 6 |      |      |
|                      |       |      |   |        |      | 9 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Current Portion of   | 8.04  | 1.12 |   | -      | -    | 3 |      | 2.11 |
| Long-Term            |       |      |   |        |      | 1 |      |      |
| Liabilities          |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | 8 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Short-Term Loans     | 22.80 | 3.17 |   | 76.73  | 8.49 | 2 |      | 1    |
| from Related Party   |       |      |   |        |      | 2 |      | 5.03 |
|                      |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 8 |      |      |
|                      |       |      |   |        |      | 7 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Debentures           | 200   | 2    |   | 200.00 | 2    | 2 |      | 1    |
|                      |       | 7.84 |   |        | 2.13 | 0 |      | 3.48 |
|                      |       |      |   |        |      | 0 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 0 |      |      |
|                      |       |      |   |        |      | 0 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Other Current        | 5     | 7    |   | 444.38 | 4    | 2 |      | 1    |
| Liabilities          | 34.33 | 4.38 |   |        | 9.17 | 4 |      | 6.85 |
|                      |       |      |   |        |      | 9 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 8 |      |      |
|                      |       |      |   |        |      | 7 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Total Current        | 16    | 23   |   | 1,     | 20   | 1 |      | 12   |
| Liabilities          | 96.09 | 6.09 |   | 890.40 | 9.18 | , |      | 8.42 |
|                      |       |      |   |        |      | 9 |      |      |
|                      |       |      |   |        |      | 0 |      |      |
|                      |       |      |   |        |      | 4 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 6 |      |      |
|                      |       |      |   |        |      | 1 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Long-Term Loans      | 3     | 4    |   | -      | -    | - |      | -    |
|                      | 43.66 | 7.84 |   |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Total Liabilities    | 20    | 28   |   | 1,     | 20   | 1 |      | 12   |
|                      | 39.75 | 3.93 |   | 890.40 | 9.18 | , |      | 8.42 |
|                      |       |      |   |        |      | 9 |      |      |
|                      |       |      |   |        |      | 0 |      |      |
|                      |       |      |   |        |      | 4 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 6 |      |      |
|                      |       |      |   |        |      | 1 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Issued and Paid-Up   | 1     | 2    |   | 179.37 | 1    | 1 |      | 1    |
| Share Capital        | 79.37 | 4.97 |   |        | 9.85 | 7 |      | 2.09 |
|                      |       |      |   |        |      | 9 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 3 |      |      |
|                      |       |      |   |        |      | 7 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Premium on Share     | 2     | 3    |   | 275.25 | 3    | 2 |      | 1    |
| Capital              | 75.25 | 8.31 |   |        | 0.46 | 7 |      | 8.56 |
|                      |       |      |   |        |      | 5 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | 5 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Legal Reserve        | 12.14 | 1.69 |   | 12.14  | 1.34 | 1 |      | 0.82 |
|                      |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 1 |      |      |
|                      |       |      |   |        |      | 4 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Unappropriated       | (1,78 | (248 |   | (1,4   | (160 | ( |      | (59  |
|                      | 8.12) | .91) |   | 53.45) | .83) | 8 |      | .89) |
|                      |       |      |   |        |      | 8 |      |      |
|                      |       |      |   |        |      | 8 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | 5 |      |      |
|                      |       |      |   |        |      | ) |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Total Shareholders’  | (132  | (183 |   | (9     | (109 | ( |      | (28  |
| Equity               | 1.36) | .93) |   | 86.69) | .18) | 4 |      | .42) |
|                      |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | 1 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 4 |      |      |
|                      |       |      |   |        |      | 9 |      |      |
|                      |       |      |   |        |      | ) |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
|                      |       |      |   |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Statement of Cash    |       |      |   |        |      |   |      |      |
| Flows                |       |      |   |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Cash Flows from      |       |      |   |        |      |   |      |      |
| Operating Activities |       |      |   |        |      |   |      |      |
| :                    |       |      |   |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Net loss             | (33   | -    |   | (4     | -    | ( |      | -    |
|                      | 4.67) |      |   | 19.45) |      | 4 |      |      |
|                      |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | 7 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 7 |      |      |
|                      |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | ) |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Adjustment to        |       |      |   |        |      |   |      |      |
| Reconcile net Loss   |       |      |   |        |      |   |      |      |
| to Net Cash provided |       |      |   |        |      |   |      |      |
| from Operation       |       |      |   |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Depreciation         | 62.10 | -    |   | 95.13  | -    | 1 |      | -    |
|                      |       |      |   |        |      | 8 |      |      |
|                      |       |      |   |        |      | 5 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 8 |      |      |
|                      |       |      |   |        |      | 0 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Bad Debts and        | (1    | -    |   | (      | -    | 1 |      | -    |
| Allowance for        | 6.74) |      |   | 47.25) |      | 7 |      |      |
| Doubtful Accounts    |       |      |   |        |      | 8 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | 2 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Loss of Exchange     | 26.93 | -    |   | 3.33   | -    | ( |      | -    |
| Rate                 |       |      |   |        |      | 1 |      |      |
|                      |       |      |   |        |      | 3 |      |      |
|                      |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 8 |      |      |
|                      |       |      |   |        |      | 5 |      |      |
|                      |       |      |   |        |      | ) |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Amortization of      | 0.35  | -    |   | 0.35   | -    | 0 |      | -    |
| Leased Right         |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 3 |      |      |
|                      |       |      |   |        |      | 2 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Loss on disposal and | (     | -    |   | 8.87   | -    | ( |      | -    |
| unused of Assets     | 1.42) |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 5 |      |      |
|                      |       |      |   |        |      | 3 |      |      |
|                      |       |      |   |        |      | ) |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Loss on the minority | -     | -    |   | (0.01) | -    | - |      | -    |
| interest             |       |      |   |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Amortization of      | -     | -    |   | -      | -    | 9 |      | -    |
| discount on          |       |      |   |        |      | . |      |      |
| Debenture            |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | 5 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Amortization of      | 3.05  | -    |   | 3.10   | -    | - |      | -    |
| Expenses             |       |      |   |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Loss of Diminution   |       | -    |   | 3.82   | -    | - |      | -    |
| in Value of Factory  |       |      |   |        |      |   |      |      |
| Supplies             |       |      |   |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Loss of Impairment   | 79.99 | -    |   | 123.34 | -    | - |      | -    |
| of Assets            |       |      |   |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Gain on Subsidiary’s | 8.88  | -    |   | (      | -    | - |      | -    |
| Liquidation          |       |      |   | 14.04) |      |   |      |      |
|                      |       |      |   |        |      |   |      |      |
| Gain From Debt       |       |      |   |        |      |   |      |      |
| Restructuring        |       |      |   |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| (Incr                |       |      |   |        |      |   |      |      |
| ease) Decrease in Op |       |      |   |        |      |   |      |      |
| eration Assets Items |       |      |   |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Short – Term         | 1     | -    |   | (      | -    | ( |      | -    |
| Investments          | 82.11 |      |   | 15.23) |      | 1 |      |      |
|                      |       |      |   |        |      | 1 |      |      |
|                      |       |      |   |        |      | 6 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 5 |      |      |
|                      |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | ) |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Trade Account -      | (     | -    |   | 127.94 | -    | 8 |      | -    |
| Receivable           | 1.39) |      |   |        |      | 4 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 4 |      |      |
|                      |       |      |   |        |      | 8 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Inventories          | (     | -    |   | 66.62  | -    | 1 |      | -    |
|                      | 7.97) |      |   |        |      | 0 |      |      |
|                      |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 4 |      |      |
|                      |       |      |   |        |      | 7 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Other Current Assets | 2.41  | -    |   | (0.07) | -    | 3 |      | -    |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 0 |      |      |
|                      |       |      |   |        |      | 8 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Other Current Assets | 1.37  | -    |   | 0.21   | -    | ( |      | -    |
|                      |       |      |   |        |      | 6 |      |      |
|                      |       |      |   |        |      | 6 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 7 |      |      |
|                      |       |      |   |        |      | 3 |      |      |
|                      |       |      |   |        |      | ) |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| (Increase)           |       |      |   |        |      |   |      |      |
|  Decrease in Operati |       |      |   |        |      |   |      |      |
| on Liabilities Items |       |      |   |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Trade Accounts       | 5.76  | -    |   | (      | -    | ( |      | -    |
| Payable              |       |      |   | 20.46) |      | 2 |      |      |
|                      |       |      |   |        |      | 3 |      |      |
|                      |       |      |   |        |      | 3 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | 4 |      |      |
|                      |       |      |   |        |      | ) |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Other creditors      | -     | -    |   | -      | -    | ( |      | -    |
|                      |       |      |   |        |      | 5 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 4 |      |      |
|                      |       |      |   |        |      | 3 |      |      |
|                      |       |      |   |        |      | ) |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Short term loans and | -     | -    |   | (1     | -    | - |      | -    |
| pre-paid payment     |       |      |   | 68.94) |      |   |      |      |
| from inter related   |       |      |   |        |      |   |      |      |
| company              |       |      |   |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Other Current        | 1     | -    |   | 217.31 | -    | 1 |      | -    |
| Liabilities          | 83.37 |      |   |        |      | 7 |      |      |
|                      |       |      |   |        |      | 1 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 6 |      |      |
|                      |       |      |   |        |      | 1 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Net Cash Provided    | (     | -    |   | (      | -    | ( |      | -    |
| from (Used In)       | 5.08) |      |   | 35.43) |      | 2 |      |      |
|                      |       |      |   |        |      | 4 |      |      |
| Operating Activities |       |      |   |        |      | 9 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 7 |      |      |
|                      |       |      |   |        |      | 7 |      |      |
|                      |       |      |   |        |      | ) |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Cash Flows from      |       |      |   |        |      |   |      |      |
| Investing Activities |       |      |   |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Purchase of          | 3     | -    |   | (      | -    | ( |      | -    |
| Property, Plant, and | 1.688 |      |   | 44.46) |      | 2 |      |      |
| Equipment            |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 3 |      |      |
|                      |       |      |   |        |      | 1 |      |      |
|                      |       |      |   |        |      | ) |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Sale of Property,    | 1.87  | -    |   | 0.24   | -    | 1 |      | -    |
| Plant, and Equipment |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 4 |      |      |
|                      |       |      |   |        |      | 2 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Net Cash Provided    | 1     | -    |   | (      | -    | ( |      | -    |
| from (Used In)       | 52.29 |      |   | 44.22) |      | - |      |      |
|                      |       |      |   |        |      | 0 |      |      |
| Investing Activities |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 8 |      |      |
|                      |       |      |   |        |      | 9 |      |      |
|                      |       |      |   |        |      | ) |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Cash Flows from      |       |      |   |        |      |   |      |      |
| Financing Activities |       |      |   |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Decrease in Bank     | (     | -    |   | (      | -    | 1 |      | -    |
| Overdrafts and Loan  | 4.01) |      |   | 45.46) |      | 4 |      |      |
| from Financial       |       |      |   |        |      | 3 |      |      |
| Institution          |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 9 |      |      |
|                      |       |      |   |        |      | 5 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Loan form the Parent | -     | -    |   | -      | -    | 2 |      | -    |
| Company              |       |      |   |        |      | 3 |      |      |
|                      |       |      |   |        |      | 1 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 8 |      |      |
|                      |       |      |   |        |      | 1 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Long term loan       | -     | -    |   | -      | -    | - |      | -    |
+----------------------+-------+------+---+--------+------+---+------+------+
| Repayment for Loans  | (5    | -    |   | -      | -    | ( |      | -    |
| from Debt            | 5.15) |      |   |        |      | 7 |      |      |
| Restructuring        |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 0 |      |      |
|                      |       |      |   |        |      | 0 |      |      |
|                      |       |      |   |        |      | ) |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Dividend             | -     | -    |   | -      | -    | - |      | -    |
+----------------------+-------+------+---+--------+------+---+------+------+
| Loss of Exchange     | -     | -    |   | -      | -    | - |      | -    |
| Rate                 |       |      |   |        |      |   |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Net Cash Used in     | (5    | -    |   | (      | -    | 3 |      | -    |
| Financing Activities | 9.15) |      |   | 45.46) |      | 0 |      |      |
|                      |       |      |   |        |      | 3 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 7 |      |      |
|                      |       |      |   |        |      | 5 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Net Increase         | 88.05 | -    |   | (1     | -    | 5 |      | -    |
| (Decrease) in Cash   |       |      |   | 25.11) |      | 3 |      |      |
| on Hand and at Banks |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 0 |      |      |
|                      |       |      |   |        |      | 9 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Cash on Hand and at  | 49.31 | -    |   | 174.61 | -    | 1 |      | -    |
| Bank as at January   |       |      |   |        |      | 1 |      |      |
| 1,                   |       |      |   |        |      | 2 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 3 |      |      |
|                      |       |      |   |        |      | 9 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+
| Cash on Hand and At  | 1     | -    |   | 49.51  | -    | 1 |      | -    |
| Banks as at December | 37.35 |      |   |        |      | 6 |      |      |
| 31,                  |       |      |   |        |      | 5 |      |      |
|                      |       |      |   |        |      | . |      |      |
|                      |       |      |   |        |      | 4 |      |      |
|                      |       |      |   |        |      | 8 |      |      |
+----------------------+-------+------+---+--------+------+---+------+------+

 Financial Ratio as of December 31, 2000

+----------------------+---------------+--------------+---------------+
|                      | 2543          | 2542         | 2541          |
+----------------------+---------------+--------------+---------------+
| Efficiency Ratio     |               |              |               |
+----------------------+---------------+--------------+---------------+
| Total Assets         | 0.35          | 0.29         | 0.39          |
| Turnover             |               |              |               |
+----------------------+---------------+--------------+---------------+
| Return on Fixed      | N.M           | N.M          | N.M.          |
| Asset (%)            |               |              |               |
+----------------------+---------------+--------------+---------------+
| Return on Total      | N.M           | N.M          | N.M.          |
| Assets (%)           |               |              |               |
+----------------------+---------------+--------------+---------------+
| Liquidity Ratio      |               |              |               |
+----------------------+---------------+--------------+---------------+
| Current Ratio        | 0.19          | 0.21         | 0.35          |
+----------------------+---------------+--------------+---------------+
| Quick Ratio          | 0.16          | 0.18         | 0.28          |
+----------------------+---------------+--------------+---------------+
| Modified Current     | N.M.          | 0.03         | N.M.          |
| Ratio                |               |              |               |
+----------------------+---------------+--------------+---------------+
| Account Receivable   | 1.33          | 3.08         | 1.67          |
| Turnover             |               |              |               |
+----------------------+---------------+--------------+---------------+
| Days Collection      | 270           | 117          | 215           |
| (Days)               |               |              |               |
+----------------------+---------------+--------------+---------------+
| Inventory Turnover   | 13.75         | 3.53         | 3.51          |
+----------------------+---------------+--------------+---------------+
| Inventory Turnover   | 26            | 102          | 103           |
| Day (Days)           |               |              |               |
+----------------------+---------------+--------------+---------------+
| Account Payable      | 12.70         | 4.40         | 2.28          |
| Turnover             |               |              |               |
+----------------------+---------------+--------------+---------------+
| Day Payable (Days)   | 28            | 82           | 158           |
+----------------------+---------------+--------------+---------------+
| Cash Cycle (Days)    | 268           | 137          | 160           |
+----------------------+---------------+--------------+---------------+
| Profitability Ratio  | -             | -            | -             |
+----------------------+---------------+--------------+---------------+
| Gross Profit Margin  | 6.26          | 14.35        | 5.79          |
| (%)                  |               |              |               |
+----------------------+---------------+--------------+---------------+
| Net Profit Margin    | -             | -            | -             |
+----------------------+---------------+--------------+---------------+
| Other Profit         | -             | -            | -             |
+----------------------+---------------+--------------+---------------+
| Net Profit Margin    | N.M           | N.M          | N.M.          |
| (%)                  |               |              |               |
+----------------------+---------------+--------------+---------------+
| Return on Equity (%) | N.M           | N.M          | N.M.          |
+----------------------+---------------+--------------+---------------+
| Financial Policy     | -             | -            | -             |
| Ratio                |               |              |               |
+----------------------+---------------+--------------+---------------+
| Debt to Equity Ratio | N.M           | N.M          | N.M.          |
+----------------------+---------------+--------------+---------------+
| Debt Ratio           | 2.84          | 2.09         | 1.28          |
+----------------------+---------------+--------------+---------------+
| Interest Coverage    | N.M           | N.M          | N.M.          |
| Ratio                |               |              |               |
+----------------------+---------------+--------------+---------------+
| Dividend per Share   | -             | -            | -             |
+----------------------+---------------+--------------+---------------+

หมายเหตุ : N.M. = No Meaning

Investment in its subsidiary

Summary of investment in the Company’s subsidiary, Rayong Wire
Industries Co., Ltd.

(Unit : Baht)

+---------------------------+-------------+-------------+-------------+
| Particular                | 2000        | 1999        | 1998        |
|                           |             |             |             |
|                           |             |             | (Revised)   |
+---------------------------+-------------+-------------+-------------+
| Total Assets              | 568         | 629,839,735 | 922,875,147 |
|                           | ,545,002.15 |             |             |
+---------------------------+-------------+-------------+-------------+
| Total Liabilities         | 937         | 893,203,508 | 1,          |
|                           | ,732,123.40 |             | 025,688,175 |
+---------------------------+-------------+-------------+-------------+
| Total Shareholder’s       | (369,       | (2          | (1          |
| Equity                    | 187,621.25) | 63,363,773) | 02,813,028) |
+---------------------------+-------------+-------------+-------------+
| Income from Sales         | 294         | 346,248,148 | 529,406,506 |
|                           | ,807,230.26 |             |             |
+---------------------------+-------------+-------------+-------------+
| Total Income              | 312         | 351,622,922 | 646,601,813 |
|                           | ,008,096.59 |             |             |
+---------------------------+-------------+-------------+-------------+
| Gross Profit              | 36          | 46,432,223  | 32,574,514  |
|                           | ,454,555.42 |             |             |
+---------------------------+-------------+-------------+-------------+
| Net Profit                | (105,       | (1          | (           |
|                           | 823,848.43) | 60,550,745) | 17,152,164) |
+---------------------------+-------------+-------------+-------------+

3.  Explanation, Financial Analysis and performance

12.3.1 The Company’s performance

The outlook of the past

-   Policy of State Agencies

1.  Liberalization of Trade

Although the Government has embarked on trade liberalization, it has set
up walls of tariff on finished import products at 20% (save for
countries of AFTA except Malaysia pay import duty at 5%). As for
Pre-Stressed Concrete Wires and Welding Wire prices of imported products
are comparable to local ones, thus, effects on the local products has
been minimal, but Trye Bead Wire faces stiff competition. The Company
had to compete with foreign sellers, despite a 20% import duty, as
imported product prices are still cheaper than the local product.
Therefore the total sales volume of the company fell in 2000 over the
statistics of 1999.

2.  Limitation on Import – Exports

State Agencies do not limit the import of products, at the same time,
promotions have been made to boost up exports. However, such efforts
failed to help the local manufacturers due to stiff competition in the
local market and product prices in foreign markets remain cheaper.
Moreover, where import of products are concerned, an importers could use
state’s mechanism for expression of desire to seek refund on import duty
under Section 19 BIS in case that the importer use imported products for
manufacturing and conversion for exports. These measures adversely
affect the group of manufactures, as well as the Company because of the
fact that import duty could be reimbursed and thus lower prices of
imported products.

-   marketing and Competition

Competition in construction industry particularly steel in year 2000 was
fierce, due to the demand on the local market being limited. Therefore,
the manufactures highly competed among themselves for business by way of
quality and price. As the construction industry had yet recovered, and
supply still exceeded demand, manufacturers used the strategy of reduced
prices in order to increase the share volume. This resulted the
Company’s revenue lower by 16%, compared with the revenue in year 1999.
For Tyre Bead Wire, although the company is the sole manufacturer in
Thailand, its share of the market stood at 16% only; the rest are all
imported because of cheaper prices. This made total sales volume of the
Company in Year 2000 drop by 43.66% over the Year 1999 figure.

Past performance

The Company’s performance in the Year 2000 showed net loss of Baht
334.66 Million, decreasing from that of the Year 1999, amounting to Baht
419.45 Million or the loss figure fell by 20.21% due to the following
causes;

(1) Income from Sales

The Company’s total sales dropped from Baht 334.39 Million in 1999 to
Baht 286.99 Million in Year 2000, or felling 16.67% because the wake of
the dampened nation economy with the demand for the product was still
quite low whereas competition remained fierce, especially price-cutting
strategy, resulting prices in the market fell drastically when compared
with prices of the previous year. This particularly affected prices of
of Pre- Stressed Concrete Wires, the main product of the Company , which
prices dropped by 12%.

(2) Interest

Income in form of interest on saving in year 2000 dropped, which was
caused by: Cash in Fixed deposits account belonging to the subsidiary
has been transferred to the saving account and paid its creditors in
compliance with Debt Restructuring, and the effects from interest rate
on saving at the commercial banks has being reduced continually.

(3) Cost and Selling and Administrative Expenses

The Company’s total expenses in the Year 2000 totaled Baht 639.07
Million, registering a drop of Baht 160.10 Million, compared with the
figure of 1999 when total expense was Baht 799.18 Million or a drop of
20%. Explanations come as follows:

Production costs of the Company reduced by Baht 25.93 Million from Baht
294.94 Million in 1999 to Baht 269.02 Million in 2000, or a reduction of
8.79%. The main reason of reduced production cost was attributed to
lower production volume, compared with the volume of 1999. Production
cost on raw materials reduced in proportion to the volume of production.

Selling and administrative expenses reduced over 1999 by 43.25%, in the
wake of selling expenses changing in tune with total sales volume,
therefore, as total sales volume dropped, selling cost dropped as well.
Administrative expense dropped because the company has policy to
strictly control this expense in Year 2000.

The company also suffered loss due to Assets depreciation as a result of
Non-usage of building and machinery, so that value of Assets dropped by
Baht 79.99 Million. The Company also had outstanding debt in form of
foreign currency, resulting in acknowledgment of loss from rising
exchange rates. Nevertheless, where interest payments are concerned in
Year 2000, there was a decrease over 1999 of 27.05% because Rayong Wire
Industry Company Limited, a subsidiary, signed an agreement of Debt
Restructuring with its Creditors. Upon to the agreement, certain amount
of interests has been scrapped, coupled with reduction of interest rate.

(4) Shareholder’s Equity

The Company pursues the policy to pay dividend at 50% of the net profit
to the shareholders, but it has been kept in abeyance in the face of the
losses at present.

In the accounting period of the Company and its subsidiary in year 2000,
there has been a great deal of accrued losses including loss in excess
of capital so that Shareholders’ equity faced minus amounting to Baht
1,321.36 Million and total liabilities was higher than total Assets.
However measures have then been laid to solve problems by financial
restructuring adjustment of Debt structure with the financial
institutions and debentures shareholder and having permission for the
financial restructuring plans in order to be efficient in term of
liquidity status and make the financial structure of the Company more
suitable. As for restructuring the Company’s business operation, steps
have been taken so that success is already in hand with respect to
manufacturing and marketing, along with monitoring debts, reduction of
production costs and expenses.

2.  Financial Status

1.  Assets

The company carried total assets in Year 2000 of Baht 718.38 Million, a
decrease of Baht 185.31 Million compared with 1999 when total assets
were Baht 903.70 Million, registering a decrease of 20.50%. Value of
fixed assets played significantly to depreciation of the value of
assets. The Company transferred certain fixed assets no longer used to
pending disposal assets, amounting Baht 48.3 Million and there was a
record of loss from depreciation of fixed assets of Baht 79.99 Million.

Current Assets namely cash increased as the company’s subsidiary
transferred its fixed deposits into its saving account. Moreover, in
year 2000, the subsidiary made payment of principle and interest to its
creditors, amounting to Baht 60.97 Million, invested in Assets by Baht
30.79 Million. Besides, current assets was circulated in trading
debtors, products in hand and other assets and debts in course of normal
business operation.

2.  Assets Quality

- Assets

The Company has recorded its Loss by way of depreciating of Assets not
used, namely building and machinery and equipment in Year 2000 for Baht
79.99 Million.

-   Debtors

Because total trading debt amount combined total amount of the company
and its subsidiary, the collection period averages 290 days. The
Company’s debtors are facing problems but when compared with volume of
last year debt , the figure was seen as greatly reduced. The Trading
Debtor’s of the subsidiary rose by Baht 31.86 Million. The demand of
products in Year 2000 dropped, the competition has become fierce. For a
company to sell its products fairly, there was the need for factors
relating to price and payment period. Therefore, the subsidiary has to
extend payment period for certain customers, resulting the increase of
the collection period averaging 97 days. Nevertheless, looking at the
overall business operation throughout Year 2000, the subsidiary had no
problem about bad debts.

3.  Cash flow

-   Cash

The company has Cash and Saving at the Bank as end of Year 2000 rising
over the year 1999 by Baht 88.05 Million. In the course of Year 2000,
the subsidiary transferred certain amounts of fixed Deposits into
Current Account, with pursuant to the conditions of Debt Restructuring
agreement. The cash flow was also made to the repayment against the Loan
amounting to Baht 60.97 Million, coupled with investment in Assets and
circulation in trade debtors/products in hand and property and other
debts for normal business operations. Cash flow on stocks in hand rose
over 1999 because the Company manufactured more products compared with
the previous year including Welding Wire and Hard Drawn Wire. Thus, it
has become essential for the company to carry more stocks in hand,
including raw materials and finished products.

-   Liquidity

In the year 2000, the Company’s current ratio and quick ratio stood at
0.19 and 0.16 respectively because the Company was in process of Debt
Restructuring. The Company carried current liabilities payable to
financial institutions at a high rate. Nevertheless, the Company
forecasts to complete the Debt Restructuring within the Year 2002 that
would reduce current liabilities and thus boost up the ratio and improve
cash flow of the Company

4.  Source of Capital

-   Liabilities

The Company has total liabilities in Year 2000 at Baht 2,039 Million, an
increase over 1999 at Baht 149.35 Million. The Company’s liabilities
mostly were outstanding debt payable to Financial Institutions and
Debenture Shares. The Company has been negotiating for Debt
Restructuring and the process is expected to be completed in Year 2002,
which outstanding debt would drop. The subsidiary also have entered into
negotiations for Debt Restructuring and already completed the process.
This resulted amount of Debt principle and interest that the subsidiary
will make long-term payment to its creditors added in the Financial
Statement, causing the rise of laibilities.

2.  Factors possibly effecting the operation or financial status in the
    future

1.  Raw materials

Cost of raw materials used for conversion and production represents
about 60% of production cost, therefore, raw material factor is
considered as a significant part of the company’s performance. As the
Company still continues to rely on imports of certain kinds of raw
materials, prices and currency exchange rate play significant roles in
the term of import.

Regarding price of raw materials, it varies and fluctuates following by
the world market which is hardly to be predicted. However, the Company
has taken measures to keep raw materials prices stable by outsourcing
suppliers having high quality of material and selling at competitive
prices. Besides, the Company has also used its past relationships with
some suppliers to stabilize prices, while the world price trends to move
upward. In term of currency exchange rate, as the Company has entered
into future trading agreements for raw materials covering 3 months
approximately, it enabled the Company to protect itself against risks of
fluctuation of exchange rate for a period of time.

2.  Production and Competition

Production is one of the main factors affecting the Company’s
performance. It requires usage of modern technology in order to produce
high quality of production. Currently demand of the products has been
limited and moved adversely with the production volume, rising in fierce
competition. Price cut and qualities are being used to draw attraction
from purchasers. As manufactures have tried to beat each other by
reducing prices, making prices in the market depressed and unrealistic.
Focusing in Tyre Bead Wire, even if the Company is sole manufacturer
producing and selling in the market, the Company is still completing
with the foreign competitors with price wise and quality wise. While the
production process requires high technology coupled with modern
machinery and qualified manpower with expertise, high cost of
maintenance and improvement affect cost of goods sold and the company’s
performance. As per production capacity, as the economic has still been
sluggish and demand in the market dropped substantially, the Company
utilized its capacity at 60% only, causing cost of good per unit
relatively high. Therefore, the Company is striving to increase sales
volume as much as possible in order to reduce unit cost and increase the
share of the market.