- 2 - In Baht Consolidated For the Company 1998 1997 1998 1997 Income (loss) before minority interest ( 103,194,948) 464,589,871 ( 60,637,372) 488,519,678 Minority interest in net loss of subsidiaries 42,557,576 23,929,807 - - Income (loss) before gain (loss) on exchange rate and cumulative effect of accounting change ( 60,637,372) 488,519,678 ( 60,637,372) 488,519,678 Gain (loss) on exchange rate (Note 1) 418,752,752 ( 886,549,718) 418,752,752 ( 886,549,718) Cumulative effect of accounting change (Note 5) - 5,503,193 - 5,503,193 NET INCOME (LOSS) 358,115,380 ( 392,526,847) 358,115,380 ( 392,526,847) Earnings (loss) per Share Primary Earnings (loss) per Share Income (loss) before gain (loss) on exchange rate and cumulative effect of accounting change ( 0.61 ) 4.89 ( 0.61) 4.89 Gain (loss) on exchange rate 4.19 ( 8.87 ) 4.19 ( 8.87 ) Cumulative effect of accounting change - 0.05 - 0.05 Net income (loss) 3.58 ( 3.93) 3.58 ( 3.93) Fully Diluted Earnings per Share Net income 1.21 1.21 See accompanying Notes to Financial Statements. (With Mr. Methee Ratanasrimethas report dated February 12, 1999) CENTRAL PATTANA PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997 In Baht Consolidated For the Company 1998 1997 1998 1997 SHARE CAPITAL - common share at Baht 10 par value Authorized 121,000,000 shares (Note 16) Issued and fully paid-up 100,000,000 shares Beginning of year 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000 Addition - - - - Deduction - - - - End of year 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000 PREMIUM ON SHARE Premium on Share Capital Beginning of year 1,185,000,000 1,185,000,000 1,185,000,000 1,185,000,000 Addition - - - - Deduction - - - - End of year 1,185,000,000 1,185,000,000 1,185,000,000 1,185,000,000 Revaluation Increment in Land (Note 12) Beginning of year 115,255,525 115,255,525 115,255,525 115,255,525 Addition - - - - Deduction ( 2,661,060) - ( 2,661,060) - End of year 112,594,465 115,255,525 112,594,465 115,255,525 UNREALIZED LOSS FROM INVESTMENT IN LISTED SECURITY (Note 10) Beginning of year ( 18,750,000) - ( 18,750,000) - Addition - ( 18,750,000) - ( 18,750,000) Deduction 18,750,000 - 18,750,000 - End of year - ( 18,750,000) - ( 18,750,000) - 2 - In Baht Consolidated For the Company 1998 1997 1998 1997 RETAINED EARNINGS Appropriated for reserve fund (Note 17) Beginning of year 97,342,762 97,342,762 97,342,762 97,342,762 Addition 23,657,238 - 23,657,238 - End of year 121,000,000 97,342,762 121,000,000 97,342,762 Unappropriated Beginning of year 504,539,593 1,047,066,440 504,539,593 1,047,066,440 Addition 334,458,142 - 334,458,142 - Deduction - ( 542,526,847) - ( 542,526,847) End of year 838,997,735 504,539,593 838,997,735 504,539,593 TOTAL SHAREHOLDERS EQUITY 3,257,592,200 2,883,387,880 3,257,592,200 2,883,387,880 See accompanying Notes to Financial Statements. (With Mr. Methee Ratanasrimethas report dated February 12, 1999) CENTRAL PATTANA PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF RETAINED EARNINGS FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997 In Baht Consolidated For the Company 1998 1997 1998 1997 UNAPPROPRIATED RETAINED EARNINGS: Beginning of year 504,539,593 1,047,066,440 504,539,593 1,047,066,440 Appropriated for cash dividend of prior year net income (Baht 1.50 per share of net income in 1996) - ( 150,000,000) - ( 150,000,000) Net income (loss) for the year 358,115,380 ( 392,526,847) 358,115,380 ( 392,526,847) Less appropriated for reserve fund (Note 17) ( 23,657,238) - ( 23,657,238) - Unappropriated retained earnings at end of year 838,997,735 504,539,593 838,997,735 504,539,593 APPROPRIATED RETAINED EARNINGS FOR RESERVE FUND (Note 17) 121,000,000 97,342,762 121,000,000 97,342,762 TOTAL RETAINED EARNINGS 959,997,735 601,882,355 959,997,735 601,882,355 See accompanying Notes to Financial Statements. (With Mr. Methee Ratanasrimethas report dated February 12, 1999 CENTRAL PATTANA PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997 In Baht Consolidated For the Company 1998 1997 1998 1997 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) 358,115,380 ( 392,526,847) 358,115,380 ( 392,526,847) Adjustment to reconcile net income (loss) to net cash provided by (used in) Depreciation and amortization 466,455,427 367,373,198 201,058,014 192,283,573 Loss on declining in value of investments 167,095,644 - 167,095,644 - Allowance for doubtful accounts 59,912,481 - 52,255,242 - Loss of recoverable amount of cost of project development 258,077,393 - 241,057,200 - Deferred income tax 107,674,834 ( 172,624,594) 107,674,834 ( 172,624,594) Equity in net loss (income) of subsidiaries - - 127,793,844 ( 42,412) Earned rental and service income (153,728,498) ( 144,209,039) ( 80,249,431) ( 90,572,769) Unrealized loss (gain) on exchange rate (546,253,199) 1,394,941,765 (546,253,199) 1,394,941,765 Redemption premium on convertible bonds 91,552,721 189,511,761 91,552,721 189,511,761 Unrealized loss (gain) from investments in listed securities ( 760,700) 10,347,193 ( 760,700) 10,347,193 Gain on redemption of convertible bonds (264,604,261) ( 5,013,035) (264,604,261) ( 5,013,035) Loss from sale of investments 151,879,224 4,661,230 151,879,224 4,661,230 Changes in Operational Assets and Liabilities Decrease (increase) in accounts receivable - trade 1,932,650 ( 119,388,045) 38,289,346 ( 106,286,266) Decrease (increase) in other current assets ( 34,503,588) ( 31,342,808) ( 6,840,299) 254,402 Decrease in unbilled income - 15,218,848 - - Increase (decrease) in bank overdrafts ( 18,417,220) ( 39,449,514) 2,767,765 ( 18,215,044) Increase (decrease) in accounts payable - trade 46,873,771 15,771,928 13,828,719 ( 5,415,971) Increase (decrease) in income tax payable 171,422,463 ( 84,310,350) 172,517,294 ( 81,532,195) - 2 - In Baht Consolidated For the Company 1998 1997 1998 1997 Increase (decrease) in accrued expenses and other current liabilities ( 23,552,666) 104,986,914 ( 6,262,748) 14,531,816 Increase in customers deposits 8,011,678 107,884,282 5,810,298 17,718,776 Increase (decrease) in guarantee for leasehold rights ( 91,290,221) 42,442,807 ( 4,047,991) 4,558,683 Increase (decrease) in unearned rental and service income 210,513,261 225,253,595 ( 7,999,162) 11,182,089 Net Cash Provided by Operating Activities 966,406,574 1,489,529,289 814,677,734 967,762,155 CASH FLOWS FROM INVESTING ACTIVITIES Increase in negotiable certificate of deposit ( 1,900,536) ( 44,916,836) ( 1,900,536) ( 44,916,836) Proceeds from sales of investments 1,255,168 26,946,052 1,255,168 26,946,052 Decrease (increase) in loans to related companies - ( 20,211,602) 1,085,492,560 538,484,973 Increase in investments in shares of related companies - ( 30,610,538) (1,408,369,396) ( 684,741,445) Dividend income - - 94,993,350 - Increase in assets for lease and cost of project development (304,262,920) (1,242,604,243) ( 30,254,029) ( 67,285,749) Purchase of furniture and office equipment ( 50,369,333) ( 97,084,547) ( 7,238,229) ( 23,129,615) Decrease (increase) in other assets 34,881,955 ( 110,529,748) 1,628,024 ( 23,809,756) Net Cash Used in Investing Activities (320,395,666) (1,519,011,462) ( 264,393,088) ( 278,452,376) CASH FLOWS FROM FINANCING ACTIVITIES Net borrowing (payment) on loans (441,593,277) 628,227,282 ( 376,410,000) ( 256,600,000) Increase (decrease) in loans from related companies and directors ( 21,372,306) ( 100,318,615) ( 37,774,890) 50,513,370 Purchase of convertible bonds (256,510,367) ( 1,551,363) ( 256,510,367) ( 1,551,363) Cash dividends - ( 150,000,000) - ( 150,000,000) Net Cash Provided by (Used in) Financing Activities (719,475,950) 376,357,304 ( 670,695,257) ( 357,637,993) Increase (decrease) in minority interest ( 89,037,233) 108,808,888 - - (More)