SET Announcements

CH. KARNCHANG PUBLIC COMPANY LIMITED, ITS SUBSIDIARIES AND ITS JOINT VENTURES REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 2001 Report of Independent Auditor To The Board of Directors and Shareholders of CH. Karnchang Public Company Limited I have reviewed the accompanying consolidated balance sheet of CH. Karnchang Public Company Limited, its subsidiaries and its joint ventures as at 31 March 2001, and the related consolidated statements of earnings, retained earnings, changes in shareholders' equity and cash flows for the three-month periods ended 31 March 2001 and 2000, and the separate financial statements of CH. Karnchang Public Company Limited for the same periods. These financial statements are the responsibility of the Company's, its subsidiaries' and its joint ventures' managements as to their correctness and the completeness of the presentation. My responsibility is to issue a report on these financial statements based on my reviews. I conducted my reviews in accordance with the auditing standard applicable to review engagements. This standard requires that I plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of the Company's, its subsidiaries' and its joint ventures' personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. I have not performed an audit and, accordingly, I do not express an audit opinion. Based on my reviews, nothing has come to my attention that causes me to believe that the accompanying financial statements are not presented fairly, in all material respects, in accordance with generally accepted accounting principles. With regard to the financial statements for the three-month period ended 31 March 2001, I draw attention to a joint venture's having construction machinery and equipment of which the net book value as included in the consolidated financial statements was Baht 130 million (before provision for impairment loss). The construction project of that joint venture was completed in 2000 and the joint venture recorded a provision for loss on impairment of assets on item which it was expected would not be used, and would be disposed of at a price lower than net book value. The Company's share of this provision in proportion to its investment was Baht 11 million. However, the joint venture has entered a bid for a new project with the Expressway and Rapid Transit Authority of Thailand and the machinery and equipment could be used on this new project. The joint venture is in the process of proposing a bid price and negotiating with the Expressway and Rapid Transit Authority of Thailand, and the result of the bid is not known at this stage. I have previously audited the consolidated financial statements of CH. Karnchang Public Company Limited, its subsidiaries and its joint ventures, and the separate financial statements of CH. Karnchang Public Company Limited for the year ended 31 December 2000 in accordance with generally accepted auditing standards and, under my report dated 19 February 2001, expressed an unqualified opinion on those statements but drew attention to the value of construction machinery and equipment of a joint venture. The balance sheet as at 31 December 2000, as presented herein for comparative purposes, formed an integral part of the financial statements which I audited and reported on. I have not performed any other audit procedures subsequent to the date of that report. Ruth Chaowanagawi Certified Public Accountant (Thailand) No. 3247 Ernst & Young Office Limited Bangkok : 3 May 2001