CENTRAL PATTANA PUBLIC COMPANY LIMITED AND SUBSIDIARIES INTERIM FINANCIAL STATEMENTS AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED JUNE 30, 1998 AND 1997 AND AUDITORS' REPORT EXPRESSED IN Thai Baht The Board of Directors Central Pattana Public Company Limited We have made a review of the balance sheet of Central Pattana Public Company Limited and the consolidated balance sheet of Central Pattana Public Company Limited and subsidiaries as at June 30, 1998, and the related statement of income of Central Pattana Public Company Limited and the related consolidated statement of income of Central Pattana Public Company Limited and subsidiaries for the three-month and six-month periods then ended. The interim financial statements of Central Pattana Public Company Limited and the consolidated interim financial statements of Central Pattana Public Company Limited and subsidiaries for the three-month and six-month periods ended June 30, 1997, which are presented for comparative purpose, were reviewed by Mr. Paitoon Taveebhol, the auditor of our firm. Our reviews were made in accordance with standards established by the Institute of Certified Accountants and Auditors of Thailand. A review of interim financial statements consists principally of obtaining an understanding of the system for the preparation of financial statements, applying analytical review procedures to financial data, and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an examination made in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. We were informed by the management that, for conservatism, the Company recorded liabilities denominated in foreign currency, which are not covered by forward contracts as of June 30, 1997, based on the referenced exchange rates announced by the Bank of Thailand on July 2, 1997, which the Ministry of Finance had announced a change in the foreign currency exchange system to be a new managed float system. Consequently, foreign currency liabilities increased by approximately Baht 218 million , which is presented separately as extraordinary item in the statements of income at the amount net of income tax approximately Baht 65 million. However, on October 22, 1997, The Stock Exchange of Thailand sent a notice informing the Company to comply with the announcement of Institute of the Certified Accountants and Auditors of Thailand (dated September 19, 1997) in reporting losses resulting from floatingcurrency exchange system in the statement of income in the third quarter of 1997, which the Company for conservatism and in compliance with the accounting standards, had already recorded the loss in the consolidated statements of income and the statements of income for the second quarter and six-month periods ended June 30, 1997, before the notification. - 2 - Based on our review, with the exception of the matter discussed in the third paragraph, we are not aware of any other material modifications that should be made to the accompanying interim financial statements and consolidated interim financial statements for them to be in conformity with generally accepted accounting principles. METHEE RATANASRIMETHA C.P.A. (THAILAND) Registration No. 3425 July 24, 1998 UNAUDITED REVIEWED CENTRAL PATTANA PUBLIC COMPANY LIMITED AND SUBSIDIARIES BALANCE SHEETS JUNE 30, 1998 AND 1997 A S S E T S In Thousand Baht Consolidated For the Company 1998 1997 1998 1997 CURRENT ASSETS Cash on hand and in banks 72,577 40,208 35,152 16,439 Short-term investments Fixed deposits 142,265 656 141,509 - Promissory notes and bills of exchange 587,933 456,132 496,912 423,126 Listed securities - Net 17,617 34,481 17,617 34,481 Total Short-term Investments 747,815 491,269 656,038 457,607 Accounts receivable - trade (Note 6) Related companies (Note 4) 109,427 126,743 89,608 70,401 Others - Net 179,357 100,180 91,456 64,239 Total Accounts Receivable - trade 288,784 226,923 181,064 134,640 Short-term loan to related companies (Note 4) - - 31,993 186,107 Other current assets 134,431 84,682 59,889 25,040 Total Current Assets 1,243,607 843,082 964,136 819,833 UNBILLED INCOME 86,104 109,659 - - COST OF PROJECT DEVELOPMENT - condominium and shophouse - Net 91,484 47,499 - - LOANS TO RELATED COMPANIES - Net (Note 4) 131,699 152,151 1,602,263 1,687,214 INVESTMENTS IN SHARES Subsidiary companies (Equity Method) (Note 7) - - 2,249,083 1,851,268 Related companies - Net (Cost Method) (Note 8) 179,736 412,531 110,770 355,531 Investment in listed security - Net 1,100 9,500 1,100 9,500 Total Investments in Shares 180,836 422,031 2,360,953 2,216,299 UNAUDITED REVIEWED - 2 - A S S E T S (Continue) In Thousand Baht Consolidated For the Company 1998 1997 1998 1997 ASSETS FOR LEASE - At Cost and Appraised Value (net of accumulated depreciation and amortization) (Notes 10 and 12) 9,921,163 9,662,584 3,513,659 3,646,033 FURNITURE AND OFFICE EQUIPMENT - At Cost (net of accumulated depreciation) 157,107 100,266 47,747 45,028 OTHER ASSETS Deferred income tax (Note 5) 66,012 - 66,012 - Negotiable certificate of deposit 46,817 24,338 46,817 24,338 Refundable income tax 81,707 13,671 56,139 8,166 Guarantee for leasehold rights (Note 12.1) 408,461 458,418 109,760 139,843 Deferred underwriting fee of common shares and convertible bonds - net 32,638 48,795 32,638 48,795 Deferred expenses and others - net 118,637 166,056 7,852 11,988 Total Other Assets 754,272 711,278 319,218 233,130 TOTAL ASSETS 12,566,272 12,048,550 8,807,976 8,647,537 See accompanying Notes to Interim Financial Statements. (With Mr. Methee Ratanasrimethas report dated July 24, 1998) UNAUDITED REVIEWED CENTRAL PATTANA PUBLIC COMPANY LIMITED AND SUBSIDIARIES BALANCE SHEETS JUNE 30, 1998 AND 1997 LIABILITIES AND SHAREHOLDERS EQUITY In Thousand Baht Consolidated For the Company 1998 1997 1998 1997 CURRENT LIABILITIES Bank overdrafts and loans from financial institutions (Note 9) 328,851 568,886 285,821 543,044 Payable to related companies (Note 4) 5,882 11,219 3,035 4,803 Current portion of long-term loans (Note 10) 483,979 500,000 170,359 - Short-term loan from related companies (Note 4) 806 - - 50,001 Payable to contractors 36,273 49,745 - - Other current liabilities Income tax payable 5,962 32,410 - 14,739 Accrued interest 40,504 42,698 40,504 42,698 Retention money 79,754 107,070 4,378 28,249 Others 225,358 162,589 94,828 104,182 Total Other Current Liabilities 351,578 344,767 139,710 189,868 Total Current Liabilities 1,207,369 1,474,617 598,925 787,716 DEFERRED INCOME TAX (Note 5) - 11,908 - 11,908 LOANS FROM RELATED COMPANIES AND DIRECTOR (Note 4) 19,089 71,374 - - LONG-TERM LOANS-Net of current portion (Note 10) 1,922,915 1,739,265 772,915 888,515 EURO CONVERTIBLE BONDS (Note 11) 2,420,922 1,501,772 2,420,922 1,501,772 CUSTOMERS DEPOSITS 636,567 562,452 446,896 439,923 GUARANTEE FOR LEASEHOLD RIGHTS (Note 12.3) 139,833 222,123 811 2,750 UNEARNED RENTAL AND SERVICE INCOME - Net 2,461,463 2,235,724 1,488,296 1,563,200 Total Liabilities 8,808,158 7,819,235 5,728,765 5,195,784 UNAUDITED REVIEWED - 2 - LIABILITIES AND SHAREHOLDERS EQUITY (Continue) In Thousand Baht Consolidated For the Company 1998 1997 1998 1997 MINORITY INTEREST IN SUBSIDIARIES 678,903 777,562 - - SHAREHOLDERS EQUITY Share capital - common share Baht 10 par value Authorized 121,000,000 shares (Note 11) Issued and fully paid-up 100,000,000 shares 1,000,000 1,000,000 1,000,000 1,000,000 Premium on share capital 1,185,000 1,185,000 1,185,000 1,185,000 Revaluation increment in land 112,594 115,256 112,594 115,256 Unrealized loss from investment in listed security (18,650) (10,250) (18,650) (10,250) Retained earnings Appropriated for reserve fund 97,343 97,343 97,343 97,343 Unappropriated 702,924 1,064,404 702,924 1,064,404 Total Shareholders Equity 3,079,211 3,451,753 3,079,211 3,451,753 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 12,566,272 12,048,550 8,807,976 8,647,537 See accompanying Notes to Interim Financial Statements. (With Mr. Methee Ratanasrimethas report dated July 24, 1998) (More)