(UNAUDITED BUT REVIEWED)
BANGKOK RUBBER PUBLIC COMPANY LIMITED
AND ITS SUBSIDIARIES
NOTES TO INTERIM FINANCIAL STATEMENTS
AS AT 30 JUNE 2004
1.	REHABILITATION PLAN
Although Thailand’s economic crisis has eased to a certain extent in the current year, financial restructuring within the business community is still prevalent and subject to readjustment. As at 30 June 2004, the Company and its subsidiaries have a capital deficit of Baht 1,716.1 million because the Company has recorded provision for guarantee obligations and allowance for doubtful debts totaling Baht 2,520.9 million. Furthermore, the Company and its subsidiaries had significant amounts of loans and related interest payable which were due for repayment but have not been repaid.
On 21 November 2002, the Company’s rehabilitation plan was approved by the Central Bankruptcy Court. The Company is in the process of implementing this plan.  This significant debt restructuring measures under the rehabilitation plan were that creditors would waive their rights to claim for outstanding interest accrued up to the date on which the court ordered rehabilitation.  This does not include the debt to be repaid to creditors supporting revolving credit and financial creditors which will receive repayment of debt as per the existing contract and/or agreement.
The significant steps for debt repayment under the rehabilitation plan are as follows: -
1.	Debt amounting to Baht 2,503 million, the repayment period is to be extended in accordance with the schedule stipulated in the rehabilitation plan, and repaid in quarterly installments within 10 years (March, June, September and December).  Interest is charged at 3% per annum for the first 3 years, 5% per annum for the next 3 years, and MLR rate per annum for the remainder.
2.	Debt amounting to Baht 1,290 million is to be repaid in form of conversion of debt into equity at Baht 17 per share within 150 days after the Company’s rehabilitation plan was approved by the Central Bankruptcy Court.

(UNAUDITED BUT REVIEWED)
3.	Debt amounting to Baht 600 million is to be repaid of principal out of the proceeds from sale of assets of affiliated companies which the Company exercises claim under the relevant loan agreements executed with the affiliated companies and by assumption of right under relevant guarantees agreement without interest within 5 years.  The Company will refinance from financial institutions, personal or other juristic to repayment the debt within 90 days if the Company fails the repayment.  The new creditor will receive repayment after the success of the rehabilitation plan.
4.	The creditors agree to suspense principal amounting to Baht 370 million from surplus cash flow for 10 years without interest.  If the Company is able to make repayment over 50 percent of this portion of debt, the creditors agree to discharge the remainder.
Recapitalization of the Company is to proceed in accordance with.
-	The Company decreased its registered share capital from Bath 1,500 million to Baht 975 million by reducing the number of shares from 150 million shares to 97.5 million shares.  (The Company registered on 17 March 2003.)
-	The Company increased its registered share capital to support the conversion of debt to equity from Baht 975 million to Baht 1,805,010,470 by issuing 83,001,047 ordinary shares with a par value Baht 10 per share.  (The Company registered on 18 March 2003.)
-	Allocation of its ordinary shares to the creditors when there is an order from the official receiver.
-	Registration of the increase in paid-up capital to be in compliance with the number of ordinary shares of the Company, which are allocated to the creditors. The Company has allocated 41,766,690 ordinary shares as part of its increased share capital to the Company’s creditors and guarantee obligations creditors to related companies by issuing 30,268,824 and 11,497,866 ordinary shares, respectively. As a result, the Company has paid-up capital by Baht 1,392,666,900 or 139,266,690 ordinary shares of Baht 10 each. The Company registered its paid-up capital on date summarised below: -
	-	4 June 2003 by	13,234,927 shares
	-	12 September 2003 by	15,563,340 shares
	-	2 December 2003 by	3,577,275 shares
	-	23 February 2004 by	9,391,148 shares
 (UNAUDITED BUT REVIEWED)
Success of the rehabilitation plan will occur when the Company has fully undertaken and/or followed the procedures of the plan mention below: 
-	The Company has completed the decrease and increase of the registered share capital to support debt to equity conversion;
-	Shareholding percentage of the Company has become more than zero; and
-	The Company has made repayment of debt as specified in the rehabilitation plan to all creditors in the amount of not less than 50 percent.
Furthermore, the implementation of the rehabilitation plan is expected to cover 5 years after the plan was approved by the Court.
The ability of the Company and its subsidiaries to continue their businesses as going concerns depends upon their ability to comply with the business rehabilitation plan, and to find additional sources of funding, and the outcome of their operations.  Nevertheless, the accompanying financial statements have been prepared on the going concern basis, assuming that the realisation of assets and settlement of liabilities and obligations will occur in the ordinary course of the businesses of the Company and its subsidiaries without expectation of significant disruption to the ongoing activities.
2.	GENERAL INFORMATION
	2.1	Basis of interim financial statement
	These interim financial statements have been prepared in accordance with Accounting Standards Pronouncement No. 41 “Interim financial statements”, with the Company choosing to present condensed interim financial statements.  However, additional line items are presented in the balance sheets, and the statements of earnings, changes in shareholders’ equity, and cash flows as in the annual financial statements.
	The interim financial statements are intended to provide information additional to that included in the latest annual financial statements.  Accordingly, they focus on new activities, events and circumstances so as not to duplicate information previously reported.  These interim financial statements should therefore be read in conjunction with the latest annual financial statements.

(UNAUDITED BUT REVIEWED)
	2.2	Basis of consolidation
	These consolidated financial statements include the financial statements of Bangkok Rubber Public Company Limited and its subsidiaries and have been prepared by using the same basis as that applied for the consolidated financial statements for the year ended 31 December 2003, with no significant changes in the composition of the group companies during the current quarter.
2.3	Significant accounting policies
These interim financial statements have been prepared on the same accounting policies and calculation methods as the financial statements for the year ended 31 December 2003.
3.	TRADE ACCOUNTS AND NOTES RECEIVABLE
	As at 30 June 2004 and 31 December 2003, trade accounts and notes receivable can be summarised below: -
 (Unit: Thousand Baht)
	Consolidated	The Company Only	
	30 June	31 December	30 June	31 December	
Description	2004	2003	2004	2003	
Trade accounts and notes receivable - related companies				
Trade accounts receivable	161,148	154,237	33,047	14,786	
Less: Allowance for doubtful accounts	(272)	(272)	(96)	(96)	
Trade accounts and notes receivable - related 					
   companies - net	160,876	153,965	32,951	14,690	
Trade accounts and notes receivable - others					
Trade accounts receivable - domestic	12,551	16,351	1,699	2,935	
Trade accounts receivable - export	226,737	240,156	143,652	181,941	
Post-dated cheques	60	60	60	60	
Total	239,348	256,567	145,411	184,936	
Less: Allowance for doubtful accounts	(17,608)	(17,316)	(8,577)	(8,284)	
Trade accounts and notes receivable – others - net	221,740	239,251	136,834	176,652	
Trade accounts and notes receivable – net	382,616	393,216	169,785	191,342	

(UNAUDITED BUT REVIEWED)
	As at 30 June 2004 and 31 December 2003, the balances of trade accounts and notes receivable are classified by aging as below: -
			(Unit: Thousand Baht)
	Consolidated	The Company Only	
	30 June	31 December	30 June	31 December	
Description	2004	2003	2004	2003	
Trade accounts and notes receivable 					
Not over 3 months	370,535	365,008	156,361	188,504	
3 - 9 months	8,316	26,909	11,400	2,074	
9 - 12 months	816	1,570	872	256	
Over 12 months	20,829	17,317	9,825	8,888	
Total	400,496	410,804	178,458	199,722	
Less: Allowance for doubtful accounts	(17,880)	(17,588)	(8,673)	(8,380)	
Trade accounts and notes receivable - net	382,616	393,216	169,785	191,342	

4.	SHORT-TERM LOANS TO RELATED COMPANIES
	Consolidated	(Unit: Thousand Baht)
	Balance as at	During the period	Balance as at	
	31 December 			30 June	
	2003	Increase	Decrease	2004	
Related company					
Rangsit Footwear Company Limited	900	-	-	900	
Total	900	-	-	900	
	The Company Only		(Unit: Thousand Baht)
	Balance as at	During the period	Balance as at	
	31 December 			30 June	
	2003	Increase	Decrease	2004	
Subsidiaries					
Narai Bangkok Rubber Company Limited	29,700	-	-	29,700	
Rangsit Polymer Company Limited	10,000	-	-	10,000	
Bangkok Rubber Saharattana Company Limited	6,000	-	-	6,000	
Total	45,700	-	-	45,700	

(UNAUDITED BUT REVIEWED)
	Short-term loans to subsidiary and related companies are unsecured. The loans are repayable on demand and carry interest at the rate 3 - 5 percent per annum and MLR determined by Siam Commercial Bank Public Company Limited.
5.	INVENTORIES

(Unit: Thousand Baht)
	Consolidated	The Company Only	
	30 June	31 December	30 June	31 December	
	2004	2003	2004	2003	
Inventories	776,665	861,320	525,627	553,181	
Less : Allowance for obsolete stock	(165,718)	(128,376)	(158,000)	(120,000)	
Inventories - net	610,947	732,944	367,627	433,181	
6.	INVESTMENTS IN SUBSIDIARIES ACCOUNTED FOR UNDER EQUITY METHOD
		Percentage holding-	
	Paid-up capital	direct and indirect	
	30 June	31 December	30 June	31 December	
	2004	2003	2004	2003	
	Thousand Baht	Thousand Baht	Percent	Percent	
Bangkok  Rubber  Development  Center Company Limited	10,000	10,000	100	100	
Manorom Bangkok Rubber Company Limited	10,000	10,000	100	100	
Narai Bangkok Rubber Company Limited	15,000	15,000	97	97	
Performance Rubber Company Limited	20,000	20,000	97	97	
Esastampa (Thailand) Company Limited	30,000	30,000	97	97	
Rangsit Polymer Company Limited	30,000	30,000	97	97	
Sena Engineering Company Limited	10,000	10,000	97	97	
Principe (Thailand) Company Limited	10,000	10,000	97	97	
Rattananakorn Engineering Company Limited	5,000	5,000	97	97	
Innovation Footwear Company Limited	130,000	130,000	84	84	
Uthai Bangkok Rubber Company Limited		30,000	30,000	54	54	
Nongchang Rubber Company Limited	40,000	40,000	54	54	
Thanakom Injection Company Limited	20,000	20,000	50	50	
Bangkok Rubber Saharattana Company Limited	210,800	210,800	68	68	

(UNAUDITED BUT REVIEWED)
(Unit: Thousand Baht)
		Investment under	
	Investment at cost	equity method	
	30 June	31 December	30 June	31 December	
	2004	2003	2004	2003	
Bangkok Rubber Development Center Company Limited	9,999	9,999	7,487	7,762	
Manorom Bangkok Rubber Company Limited	9,999	9,999	703	724	
Narai Bangkok Rubber Company Limited	2,430	2,430	-	-	
Performance Rubber Company Limited	3,240	3,240	7,759	5,599	
Esastampa (Thailand) Company Limited	1,215	1,215	-	-	
Rangsit Polymer Company Limited	1,215	1,215	-	-	
Sena Engineering Company Limited	1,215	1,215	-	-	
Principe (Thailand) Company Limited	40	40	-	-	
Rattananakorn Engineering Company Limited	6,357	6,357	7,471	7,494	
Innovation Footwear Company Limited	143,143	143,143	-	-	
Thanakom Injection Company Limited	10,000	10,000	18,351	18,689	
Bangkok Rubber Saharattana Company Limited	103,340	103,340	-	-	
Total investments in subsidiaries	292,193	292,193	41,771	40,268	
	Dividend payment 	
	No dividend was paid by the subsidiaries during the period of 2004 and the year 2003.
Innovation Footwear Company Limited
	On 1 September 1998, an extraordinary general meeting of the subsidiary’s shareholders passed a resolution to increase the share capital of this subsidiary from Baht 70 million to Baht 130 million through the issue of 0.6 million ordinary shares. The increase in the share capital was registered with the Ministry of Commerce on 30 September 1998.  The Company has not yet paid up Baht 20 million of the capital.

(UNAUDITED BUT REVIEWED)
7.	INVESTMENTS IN ASSOCIATED COMPANIES ACCOUNTED FOR UNDER EQUITY METHOD
			Percentage holding-	
		Paid-up capital	direct and indirect	
		30 June	31 December	30 June	31 December	
	Nature of business	2004	2003	2004	2003	
		Thousand Baht	Thousand Baht	Percent	Percent	
P.S.R. Footwear Company Limited	Manufacture of 
  footwear	100,000	100,000	48	48	
Rayong Bangkok Rubber Company Limited	Manufacture of 
  rubber products	20,000	20,000	46	46	
P.I. Industry Company Limited	Manufacture of
  compound rubber	80,000	80,000	45	45	
Cavallini Giulio Pellami (Thailand) Company Limited	Manufacture of 
  artificial leather	75,000	75,000	43	43	
Jones & Vining (Thailand) Company Limited	Manufacture of  shoe 
  lasts	15,000	15,000	35	35	
Marketing Plus Company Limited (19.5% of shares held by the Company, 25% of shares held by Bangkok Athletic Company Limited)	Sports equipment 
  agent 	20,000	20,000	20	20	
Bangkok Athletic Company Limited	Shoe, clothing and sports equipment agent	200,000	200,000	39	39	
Shoes Mart 93 Company Limited (100% of shares held by Bangkok Athletic Company Limited)	Shoe agent	1,900	1,900	39	39	
Innovation Nakornluang Footwear Company Limited (3% held by the Company, 21% held by Innovation Footwear Company Limited)	Manufacture of footwear	350,150	350,150	21	21	
Chainat Rubber Company Limited (100% held by Innovation Nakornluang Footwear Company Limited)	Manufacture  of 
  shoe outsoles	20,000	20,000	21	21	
Hankha Bangkok Rubber Company Limited (100% held by Innovation Nakornluang Footwear Company Limited)	Manufacture  of 
  shoe uppers	10,000	10,000	21	21	
Sungshin Bangkok Rubber Company Limited (100% held by Innovation Nakornluang Footwear Company Limited)	Injection of shoe 
  outsoles	15,000	15,000	21	21	

(UNAUDITED BUT REVIEWED)
 (Unit: Thousand Baht)
	Consolidated	
	Investments at cost	Investments under equity method	
	30 June        2004	31 December 2003	30 June       2004	31 December 2003	
					
P.S.R. Footwear Company Limited	48,499	48,499	-	-	
Rayong Bangkok Rubber Company Limited	4,100	4,100	-	-	
P.I. Industry Company Limited	42,000	42,000	55,683	51,367	
Cavallini Giulio Pellami (Thailand) Company					
   Limited	32,499	32,499	-	-	
Jones & Vining (Thailand) Company Limited	5,249	5,249	22,694	20,683	
Marketing Plus Company Limited	3,900	3,900	-	-	
Bangkok Athletic Company Limited	151,806	151,806	77,231	83,865	
Innovation Nakornluang Footwear Company 					
   Limited	11,262	11,262	64,776	67,764	
Total investments in associated companies	299,315	299,315	220,384	223,679	
(Unit: Thousand Baht)
	The Company Only	
	Investments at cost	Investments under equity method	
	30 June        2004	31 December 2003	30 June       2004	31 December 2003	
P.S.R. Footwear Company Limited	48,499	48,499	-	-	
Rayong Bangkok Rubber Company Limited	300	300	-	-	
P.I. Industry Company Limited	42,000	42,000	55,683	51,367	
Cavallini Giulio Pellami (Thailand) Company					
   Limited	32,499	32,499	-	-	
Jones & Vining (Thailand) Company Limited	5,249	5,249	22,694	20,683	
Marketing Plus Company Limited	3,900	3,900	-	-	
Bangkok Athletic Company Limited	151,806	151,806	77,231	83,865	
Innovation Nakornluang Footwear Company 					
   Limited	11,262	11,262	4,496	5,705	
Total investments in associated companies	295,515	295,515	160,104	161,620	
(UNAUDITED BUT REVIEWED)
Shares of profits (losses) from investments in associated companies under the equity method included in the statements of earnings for the three-month and six-month period ended 30 June 2004 are determined based on financial statements prepared by the management of those associated companies and not reviewed by their auditors, with the exceptions of the following associated companies:
-	Bangkok Athletic Company Limited
-	Innovation Nakornluang Footwear Company Limited
Dividend payment
During 2004, dividend of Baht 3.7 million was received from Jones & Vining (Thailand) Company Limited (2003: dividend from Jones & Vining (Thailand) Company Limited and P.I. Industry Company Limited amounting to Baht 11.6 million and Baht 33.8 million, respectively).
8.	LONG-TERM INVESTMENTS - RELATED COMPANIES
			Percentage holding-	
		Paid-up capital	direct and indirect	
		30 June	31 December	30 June	31 December	
	Nature of business	2004	2003	2004	2003	
		Thousand Baht	Thousand 
Baht	Percent	Percent	
Casa Di Moda Company Limited	Shoe agent	10,000	10,000	19.4	19.4	
Saha Rattananakorn Company 
   Limited	Real estate 	180,000	180,000	19.0	19.0	
Saha Ubolnakorn Company Limited	Real estate 	50,000	50,000	19.0	19.0	
Panpolytechnic Company Limited	Seminar and training	5,000	5,000	18.0	18.0	
Nutrition House Company Limited	Food industry	86,000	86,000	8.7	8.7	
Bangkok Rubberland Engineering 
   Company Limited	Gardening and construction	60,000	60,000	8.2	8.2	
Banpan Engineering and Holding Company Limited	Services	670,000	670,000	7.0	7.0	
Sport Ace Company Limited	Shoe agent	40,000	40,000	6.7	6.7	

(UNAUDITED BUT REVIEWED)
			Percentage holding-	
		Paid-up capital	direct and indirect	
		30 June	31 December	30 June	31 December	
	Nature of business	2004	2003	2004	2003	
		Thousand Baht	Thousand 
Baht	Percent	Percent	
Ecco (Thailand) Company Limited	Manufacture of 
  footwear	200,000	200,000	5.0	5.0	
Thai Herbal Products Company 
  Limited	Manufacture of 
  pharmaceuticals	80,000	80,000	2.2	2.2	
Noble Place Company Limited	Golf course	1,250,000	1,250,000	0.1	0.1	
Sunlot Enterprise (Thailand) Company Limited	Tannery	130,000	130,000	5.7	5.7	
UB-Haworth (Thailand) Company 
  Limited	Manufacture of 
  furniture	396,146	396,146	0.5	0.5	
Pan Asia Holding Company Limited	Holding company	928,000	928,000	17.5	17.5	
Pan Biotech Company Limited	Agriculture	10,000	10,000	10.0	10.0	
Orisol International (Thailand)	Sewing machine	20,000	20,000	10.0	10.0	
   Company Limited	   trading					
Panway of Life Company Limited	Retail	4,000	4,000	10.0	10.0	
			Percentage holding-	
		Paid-up capital	direct and indirect	
		30 June	31 December	30 June	31 December	
	Nature of business	2004	2003	2004	2003	
		Thousand 
HK	Thousand 
HK	Percent	Percent	
Banpan Industrial	Holding company	7,200	7,200	9.0	9.0	
Suntec Footwear Corporation	Raw material	18,095	18,095	19.8	19.8	
	   purchasing agent					

(UNAUDITED BUT REVIEWED)
 (Unit : Thousand Baht)
	Consolidated	The Company Only	
	30 June	31 December	30 June	31 December	
	2004	2003	2004	2003	
Group for which full provision for impairment has been made				
Casa Di Moda Company Limited	360	360	360	360	
Saha Rattananakorn Company Limited	42,201	42,201	42,201	42,201	
Saha Ubolnakorn Company Limited	8,750	8,750	8,750	8,750	
Nutrition House Company Limited	6,803	6,803	6,803	6,803	
Bangkok Rubberland Engineering Company Limited	4,899	4,899	4,899	4,899	
Banpan Engineering and Holding Company Limited	56,450	56,450	9,870	9,870	
Noble Place Company Limited	1,500	1,500	1,500	1,500	
UB-Haworth (Thailand) Company Limited	1,875	1,875	1,875	1,875	
Sunlot Enterprise (Thailand) Company Limited	7,399	7,399	7,399	7,399	
Pan Biotech Company Limited	1,000	1,000	1,000	1,000	
Orisol International (Thailand) Company Limited	2,000	2,000	2,000	2,000	
Suntec Footwear Corporation	14,747	14,747	-	-	
Total 	147,984	147,984	86,657	86,657	
Less : Allowance for impairment 	(147,984)	(147,984)	(86,657)	(86,657)	
Net	-	-	-	-	
Group for which partial provision for impairment has been made					
Panpolytechnic Company Limited	900	900	900	900	
Less : Allowance for impairment	(843)	(843)	(843)	(843)	
Net	57	57	57	57	
Thai Herbal Products Company Limited	1,800	1,800	1,800	1,800	
Less : Allowance for impairment 	(162)	(162)	(162)	(162)	
Net	1,638	1,638	1,638	1,638	
Group that non impairment					
Ecco (Thailand) Company Limited	11,814	11,814	11,814	11,814	
Sport Ace Company Limited	12,673	12,673	12,673	12,673	
Pan Asia Holding Company Limited	162,620	162,620	162,620	162,620	
Panway of Life Company Limited	400	400	-	-	
Banpan Industrial 	2,103	2,103	2,103	2,103	
Total 	189,610	189,610	189,210	189,210	
Long-term investments - net	191,305	191,305	190,905	190,905	

(UNAUDITED BUT REVIEWED)
	Dividend payment
	During 2004, dividend of Baht 5 million was received from Ecco (Thailand) Company Limited (2003: dividends of Baht 7.5 million and Baht 4.9 million, were received from Ecco (Thailand) Company Limited and Pan Asia Holding Company Limited, respectively).
9.	LONG-TERM INVESTMENT - AVAILABLE-FOR-SALE SECURITY
(Unit: Thousand Baht)
	30 June 2004	31 December 2003	
			Unrealized 			Unrealized 	
	Book value	Fair value	loss	Book value	Fair value	loss	
Pan Asia Footwear Public 							
   Company Limited	1,020,880	467,915	(552,965)	866,453	463,282	(403,171)	
On 18 February 2004, the Company exercised its option as former shareholder to increase the share capital of Pan Asia Footwear Public Company Limited of 30.9 million shares at a price of Baht 5 per share totaling Baht 154.4 million.
10.	RESTRICTED DEPOSITS AT FINANCIAL INSTITUTIONS
As at 30 June 2004 and 31 December 2003, the Company and its subsidiaries had pledged the following deposits at financial institutions to secure bank guarantee facilities issued by banks on behalf of the Company and its subsidiaries.
(Unit: Thousand Baht)
	Consolidated	The Company Only	
	30 June 2004	31 December 2003	30 June 2004	31 December 2003	
Deposit at financial institutions	7,063	3,904	321	319	

(UNAUDITED BUT REVIEWED)
11.	LONG-TERM LOANS AND INTEREST RECEIVABLES - RELATED COMPANIES
Consolidated	(Unit: Thousand Baht)
		Balance as at  	During the period	Balance as at  	
	Type	31 December 2003	Increase	Decrease	30 June 2004	
Associated companies						
Rayong Bangkok Rubber Company    
    Limited	
1	
90,179	
-	
-	
90,179	
Cavallini Giulio Pellami (Thailand) Company Limited	
1	
385,951	
-	
-	
385,951	
Sungshin Bangkok Rubber Company Limited	6              	31,000	-	-	31,000	
Total 		507,130	-	-	507,130	
Less : Allowance for doubtful debts		(476,130)	-	-	(476,130)	
Net		      31,000	-	-	31,000	
Related companies						
Srisuree Company Limited	7	   32,132	726	-	32,858	
Casa Di Moda Company Limited	5	   14,500	-	250	14,250	
Bangkok Rubberland Engineering Company						
   Limited	1	11,271	-	-	11,271	
Banpan Engineering and Holding Company						
   Limited	3	    938,819	6,703	-	945,522	
Westech Engineering Company Limited 	1	  31,723	-	1,587	30,136	
Banpan World Engineering Company Limited	4	   45,549	-	-	45,549	
Bangkok Arqua Land Company Limited	4	107,214	-	107,214	-	
Sahanitikij Company Limited	4	40,580	-	-	40,580	
Prasert 1243 Company Limited	4	34,802	-	-	34,802	
Total 		1,256,590	7,429	109,051	1,154,968	
Less : Allowance for doubtful debts		(1,127,862) 	(7,429)	(37,804)	(1,097,487)	
Net		128,728	-	71,247	57,481	
Long-term loans and interest receivables - net		159,728	-	71,247	88,481	

(UNAUDITED BUT REVIEWED)
The Company Only	(Unit : Thousand Baht)
		Balance as at  	During the period	Balance as at  	
	Type	31 December 2003	Increase	Decrease	30 June 2004	
Subsidiaries						
Narai Bangkok Rubber Company Limited	2/8	21,092	-	-	21,092	
Esastampa (Thailand) Company Limited	1/9	37,375	420	200	37,595	
Rangsit Polymer Company Limited	2	 43,073	946	-	44,019	
Sena Engineering Company Limited	2/8	60,270	353	-	60,623	
Bangkok Rubber Saharattana Company Limited	2/8	158,070	-	6,925	151,145	
Principe (Thailand) Company Limited	2/8	  82,499	-	1,350	81,149	
Total		  402,379	1,719	8,475	395,623	
Associated companies						
Rayong Bangkok Rubber Company Limited	1	90,179	-	-	90,179	
Cavallini Giulio Pellami (Thailand)   						
   Company Limited	1	     385,951	-	-	385,951	
Sungshin Bangkok Rubber Company Limited	6	31,000	-	-	31,000	
Total		507,130	-	-	507,130	
Less : Allowance for doubtful debts		(476,130)	-	-	(476,130)	
Net		31,000	-	-	31,000	
Related companies						
Srisuree Company Limited	7	32,132	726	-	32,858	
Casa Di Moda Company Limited	5	  14,500	-	250	14,250	
Bangkok Rubberland Engineering Company						
   Limited	1	11,271	-	-	11,271	
Banpan Engineering and Holding Company Limited	
3	
938,819	
6,703	
-	
945,522	
Westech Engineering Company Limited	1	  31,723	-	1,587	30,928	
Banpan World Engineering Company 
    Limited	
4	
   45,549	
-	
-	
45,549	
Bangkok Arqua Land Company Limited	4	   107,214	-	107,214	-	
Sahanitikij Company Limited	4	   40,580	-	-	40,580	
Prasert 1243 Company Limited	4	   34,802	-	-	34,802	
Total		1,256,590	7,429	109,051	1,154,968	
Less : Allowance for doubtful debts		(1,127,862)	(7,429)	(37,804)	(1,097,487)	
Net		128,728	-	71,247	57,481	
Long-term loans and interest receivables - net	562,107	1,719	79,722	484,104	
During the current quarter, the Company received assets from Bangkok Arqua Land Company Limited in settlement of debt, consisting of land with a fair value of Baht 101.1 million, and reversed allowance for doubtful debts of Baht 6.1 million set aside for this debtor.

(UNAUDITED BUT REVIEWED)
	Allowance for doubtful debts
(Unit: Thousand Baht)
	Consolidated	The Company Only	
	30 June        2004	31 December 2003	30 June       2004	31 December 2003	
Associated companies					
Cavallini Giulio Pellami (Thailand) Company Limited	385,951	385,951	385,951	385,951	
Rayong Bangkok Rubber Company Limited	90,179	90,179	90,179	90,179	
Total	476,130	476,130	476,130	476,130	
Related companies					
Banpan World Engineering Company Limited	44,522	44,522	44,522	44,522	
Westech Engineering Company Limited	-	31,723	-	31,723	
Sahanitikij Company Limited	39,783	39,783	39,783	39,783	
Prasert 1243 Company Limited	34,802	34,802	34,802	34,802	
Banpan Engineering and Holding Company Limited	945,222	938,819	945,222	938,819	
Srisuree Company Limited	32,858	32,132	32,858	32,132	
Bangkok Arqua Land Company Limited	-	6,081	-	6,081	
Total	1,097,487	1,127,862	1,097,487	1,127,862	
Total	1,573,617	1,603,992	1,573,617	1,603,992	

(UNAUDITED BUT REVIEWED)
The Company provided loans to 18 related companies which the Company restructured in 2001 by extension of repayment periods and reduction in interest rates, as detailed below.
(Unit : Thousand Baht)
	Consolidated	The Company Only	
	30 June	31 December	30 June	31 December	
	2004	2003	2004	2003	
Type 1 	517,537	519,124	517,537	519,124	
Type 2	-	-	44,019	43,073	
Type 3 	945,522	938,819	945,522	938,819	
Type 4 	120,931	228,145	120,931	228,145	
Type 5	14,250	14,500	14,250	14,500	
Type 6	31,000	31,000	31,000	31,000	
Type 7	32,858	32,132	32,858	32,132	
Type 8	-	-	314,009	321,931	
Type 9	-	-	37,595	37,375	
Total	1,662,098	1,763,720	2,057,721	2,166,099	
Less : Allowance for doubtful debts	(1,573,617)	(1,603,992)	(1,573,617)	(1,603,992)	
Net	88,481	159,728	484,104	562,107	
Type 1
	-	Interest is charged at the rate of 5 percent per annum for the period from 1 October 2001 to 31 December 2002.
	-	Interest is charged at the Minimum Loan Rate (MLR) per annum for the period from 1 January 2003 to 30 September 2007. 
	-	Payment of principal and interest is scheduled on a monthly basis from 31 January 2003 to 30 September 2007 (57 instalments).
	-	Payment of accrued interest is scheduled on a monthly basis from 31 January 2003 to 30 September 2007 (57 instalments).

(UNAUDITED BUT REVIEWED)
	Type 2
	-	Interest is charged at the rate of 5 percent per annum for the period from 1 October 2001 to 31 December 2002.
	-	Interest is charged at the Minimum Loan Rate (MLR) per annum for the period from 1 January 2003 to 30 September 2005.
	-	Payment of principal and interest is scheduled on a monthly basis from 31 January 2003 to 30 September 2005 (33 instalments).
	-	Payment of accrued interest is scheduled on a monthly basis from 31 January 2003 to 30 September 2005 (33 instalments).
	Type 3
	-	Interest is charged at the rate of 1 percent per annum for the period from 1 October 2001 to        30 September 2002. 
	-	Interest is charged at the rate of 2 percent per annum for the period from 1 October 2002 to        30 September 2004.
	-	Interest is charged at the Minimum Loan Rate (MLR) –1 percent per annum for the period from     1 October 2004 to 31 January 2013.
	-	Payment of principal and interest is scheduled on a monthly basis from 31 January 2003 to 31 January 2013 (120  instalments).
	-	Payment of accrued interest is scheduled on a monthly basis from 31 January 2003 to 31 December 2007 (60 instalments).
	Type 4
	-	The repayment schedule for principal and interest is extended without additional interest charged.  Repayment is scheduled on a monthly basis from 30 April 2002 to 31 December 2006              (57 instalments).

(UNAUDITED BUT REVIEWED)
	Type 5
	-	Interest is charged at the rate of 3 percent per annum for the period from 2003 to 2005, 5 percent per annum for the period from 2006 to 2008 and MLR rate since 2009.
	-	The repayment of principal is scheduled on a quarterly basis from 31 July 2003 to 30 April 2010 (28 instalments).
	Type 6
	-	Interest is charged at the rate of 8.25 percent per annum for the period from 15 July 2000 to 31 July 2000.
	-	Interest is charged at the Minimum Loan Rate (MLR) per annum from 1 August 2000.
	-	The repayment of principal is scheduled on a quarterly basis from 31 October 2000 to 31 July 2010 (40 instalments).
	Type 7
	-	Interest is charged at the rate of 5 percent per annum for the period from 1 July 2002 to 31 December 2002.
	-	Interest is charged at the Minimum Loan Rate (MLR) per annum from 1 January 2003 to 30 September 2007.
	-	Payment of principal and interest is scheduled a monthly basis from 31 January 2003 to 30 September 2007 (57 instalments).
	Type 8
	-	Interest is charged at the rate of 3 percent per annum for the period from 2003 to 2005, 5 percent per annum for the period from 2006 to 2008 and MLR rate since 2009.
	-	Payment of principal and interest is scheduled on a monthly basis from 31 January 2003 to 30 September 2005 (33 instalments).

(UNAUDITED BUT REVIEWED)
	-	Payment of accrued interest is scheduled on a monthly basis from 31 January 2003 to 30 September 2005 (33 instalments).
	Type 9
	-	Interest is charged at the rate of 3 percent per annum for the period from 2003 to 2005, 5 percent per annum for the period from 2006 to 2008 and MLR rate since 2009.
	-	Payment of principal and interest is scheduled on a monthly basis from 31 January 2003 to 30 September 2007 (57 instalments).
	-	Payment of accrued interest is scheduled on a monthly basis from 31 January 2003 to 30 September 2007 (57 instalments).
12.	INVESTMENTS IN PROPERTIES
		(Unit : Thousand Baht)
	Consolidated	The Company Only	
	30 June	31 December	30 June	31 December	
	2004	2003	2004	2003	
Investments in properties	122,920	122,920	122,920	122,920	
Less : Allowance for impairment	(1,190)	(1,190)	(1,190)	(1,190)	
Investments in properties – net	121,730	121,730	121,730	121,730	
13.	RECEIVABLES FROM SALES OF INVESTMENTS – RELATED COMPANIES
(Unit : Thousand Baht)
		Consolidated	The Company Only	
		30 June	31 December	30 June	31 December	
	Note	2004	2003	2004	2003	
Pan Asia Footwear Public Company Limited						
   Investment in Bangkok Athletic Company Limited	13.1	240	240	240	240	
   Investment in Aphakorn Industries Company Limited	13.2	7,798	7,798	7,798	7,798	
Total		8,038	8,038	8,038	8,038	

(UNAUDITED BUT REVIEWED)
13.1	On 30 June 2000, the Company sold its holding in the ordinary shares of Bangkok Athletic Company Limited to Pan Asia Footwear Public Company Limited at a price of Baht 79.99 million.  Of this, Baht 5 million was paid on the agreement date, and the remaining debt was to be paid in 37 monthly instalments of Baht 2 million each, plus a 38th instalment of Baht 0.99 million. The first payment was made in July 2000.  On 28 September 2001, Pan Asia Footwear Public Company Limited transferred its title in the promissory note to the Company in debt settlement. As at 30 June 2004, the outstanding balance receivable, from the sale of the investment, is Baht 0.24 million.      
13.2	During 2001, the Company sold its holding in the ordinary shares of  Aphakorn Industries Company Limited to Pan Asia Footwear Public Company Limited at a price of Baht 18.68 million. As at 30 June 2004, the outstanding balance receivable, from the sale of the investment, is Baht 7.8 million.  
14.	BANK OVERDRAFTS AND LOANS FROM FINANCIAL INSTITUTIONS
		(Unit : Thousand Baht)
	Consolidated	The Company Only	
	30 June	31 December	30 June	31 December	
	2004	2003	2004	2003	
Bank overdrafts 	64,057	46,500	24,925	100	
Short-term loans	10,000	10,000	-	-	
Trust receipts	89,784	51,785	73,511	25,306	
Packing credits	446,400	177,280	310,000	22,000	
Total	610,241	285,565	408,436	47,406	
The Company and its subsidiaries’ bank overdrafts and short-term loans from financial institutions carry interest at the rates 3.75 percent per annum.  Most of them are guaranteed by the Company.

(UNAUDITED BUT REVIEWED)
The Company and its subsidiaries have been granted the following credit facilities from banks and financial institutions :- 
	Consolidated	The Company Only	
	30 June	31 December	30 June	31 December	
	2004	2003	2004	2003	
Overdraft facilities - Million Baht	193.0	194.2	82.9	79.1	
L/C, trust receipts, discounted P/Ns, short-term loans, forward exchange contracts and guarantee facilities 					
-	Million Baht	3,396.0	3,476.1	2,875.2	2,875.2	
-	Million USD	20.0	20.0	20.0	20.0	
15.	DEBT UNDER REHABILITATION PLAN
	The Company has restructured its debts under the Company’s rehabilitation plan as discussed in Note 1.  This has meant that the Company has had to reclassify its outstanding liabilities, and these liabilities have now been transferred to debts under rehabilitation plan awaiting restructuring according to the next stage of the plan.
	Details of debts under rehabilitation plan as at 30 June 2004 and 31 December 2003 are as follows :-
(Unit : Thousand Baht)
		Consolidated	The Company Only	
		30 June 
2004	31 December 
2003	30 June 
2004	31 December 
2003	
1.	Debt is to be repaid from operational cash flow					
	within 10 years.  Principal and interest are					
	repayable on quarterly basis, commencing					
	from December 2002. And debt is to be repaid					
	from the cash received which the Company					
	exercises claim based on evidence of loan owed					
	by affiliates within 10 years.  Principal and					
	interest are repayable on quarterly basis,					
	commencing from December 2002.  Interest					
	rate of both debts are charged at 3% for the first 3 					
	years, 5% for the next 3 years and MLR after year six.	
863,530	
918,107	
863,530	
918,107	

(UNAUDITED BUT REVIEWED)
 (Unit : Thousand Baht)
		Consolidated	The Company Only	
		30 June 
2004	31 December 
2003	30 June 
2004	31 December 
2003	
2.	Debt is to be repaid from the cash received from 					
	sales of assets of affiliated companies which 					
	the Company exercises claim under the relevant					
	loans agreements executed with the affiliated					
	companies and by assumption of right under					
	relevant guarantee agreement without interest					
	within 5 years.	289,543	289,005	289,543	289,005	
3.	Debt which the creditors agree to suspense debt					
	repayment.  The debt is to be repaid from					
	surplus cash flow for 10 years without interest.					
	If the Company is able to make repayment over					
	50 percent of this portion of debt, the creditors					
	agree to discharge the remainder.	178,439	178,108	178,439	178,108	
		1,331,512	1,385,220	1,331,512	1,385,220	
	Add : Deferred interest payable	379,962	387,255	379,962	387,255	
		1,711,474	1,772,475	1,711,474	1,772,475	
	Less : Current portion of debt under rehabilitation					
	             plan	(161,522)	(163,374)	(161,522)	(163,374)	
	Debt under rehabilitation plan - net of current					
	   portion	1,549,952	1,609,101	1,549,952	1,609,101	

(UNAUDITED BUT REVIEWED)
16.	DEBT AWAITING FOR EQUITY CONVERSION
	As discussed in Note 1, during the period of 2004 and the year 2003 the Company has allocated part of its increased capital as follows :-
	2003	2004	
	1st debt to equity conversion	2nd debt to equity conversion	3rd debt to equity conversion	4th debt to equity conversion	
Number of shares by debt to equity 					
   conversion (shares)	13,234,927	15,563,340	3,577,275	9,391,148	
Par value of shares (Baht per share)	10	10	10	10	
Fair value at debt to equity conversion date 					
   (Baht per share)	5.65	11.50	8.3	6.2	
Price as agreed upon rehabilitation plan					
   (Baht per share)	17	17	17	17	
Premium (discount) on share capital 					
   (Thousand Baht)	(57,572)	23,345	(6,081)	(35,686)	
Gain on debt restructuring (Thousand Baht)	150,217	85,599	31,122	101,424	
	Debt awaiting conversion to equity as presented in the balance sheet consists of obligations to the Company’s creditors and guarantee obligations which the official receiver order to be paid by conversion to equity. The Company has not yet allocated and issued shares.
17.	SHORT-TERM LOANS FROM RELATED COMPANIES
	Consolidated	(Unit : Thousand Baht)
	Balance as at  	During the period	Balance as at  	
	31 December 2003	Increase	Decrease	30 June 2004	
Associated companies					
Innovation Nakornluang Footwear Company					
   Limited	10,500	-	-	10,500	
Chainat Rubber Company Limited	4,000	-	-	4,000	
Hankha Bangkok Rubber Company Limited	4,600	2,500	-	7,100	
Total	19,100	2,500	-	21,600	

(UNAUDITED BUT REVIEWED)
	Consolidated	(Unit : Thousand Baht)
	Balance as at  	During the period	Balance as at  	
	31 December 2003	Increase	Decrease	30 June 2004	
Related companies					
Footwear Tech 1530 Company Limited	9,380	-	(1,560)	7,820	
Pek Industry Company Limited	4,000	-	(500)	3,500	
Banpan Research Laboratory Company Limited	2,000	-	-	2,000	
Pan Asia Footwear Public Company Limited	57,849	158,000	(157,849)	58,000	
Total	73,229	158,000	(159,909)	71,320	
Total	92,329	160,500	(159,909)	92,920	
Short-term loan from Innovation Nakornluang Footwear Company Limited
A short-term loan to Uthai Bangkok Rubber Company Limited, which is unsecured.  The loan is repayable on demand and carries interest at MLR per annum.
Short-term loan from Chainat Rubber Company Limited
A short-term loan to Rangsit Polymer Company Limited, which is unsecured.  The loan is repayable on demand and carries interest at the rate of 5 percent per annum.
Short-term loan from Hankha Bangkok Rubber Company Limited
A short-term loan to Performance Rubber Company Limited amounting to Baht 4.6 million which is unsecured.  The loan is repayable on demand and carries interest at the rate of 3 percent per annum.
A short-term loan to Rangsit Polymer Company Limited amounting to Baht 2.5 million which is unsecured. The loan is repayable on demand and carries interest at the rate of 0.4 percent per annum.
Short-term loan from Footwear Tech 1530 Company Limited
A short-term loan to Rattananakorn Engineering Company Limited, which is unsecured.  The loan is repayable on demand and carries interest at the rate of 4 - 5 percent per annum.

(UNAUDITED BUT REVIEWED)
Short-term loan from Pek Industry Company Limited
A short-term loan to Esastampa (Thailand) Company Limited, which is unsecured.  The loan is repayable on demand and carries interest at the rate of 3 percent per annum.
Short-term loan from Pan Asia Footwear Public Company Limited
A short-term loan to Bangkok Rubber Saharattana Company Limited, which is unsecured.  The loan is repayable on demand and carries interest at the rate of 2.7 - 3.5 percent per annum.
Short-term loan from Banpan Research Laboratory Company Limited
A short-term loan to Sena Engineering Company Limited, which is unsecured.  The loan is repayable on demand and carries interest at the rate of 3 percent per annum.
18.	LONG-TERM LOANS FROM RELATED COMPANIES
	Consolidated	(Unit : Thousand Baht)
		Balance as at	During the period	Balance as at	
	Note	31 December 2003	Increase	Decrease	30 June 2004	
Associated company						
P.S.R. Footwear Company Limited	18.1	9,000	-	-	9,000	
Related companies						
Banpan Research Laboratory Company 						
   Limited	18.2	2,500	-	-	2,500	
Pan Asia Holding Company Limited	18.2	74,703	-	(4,600)	70,103	
Total		86,203	-	(4,600)	81,603	
18.1	Long-term loan from associated company
The long-term loan of Rangsit Polymer Company Limited from P.S.R. Footwear Company Limited amounting to Baht 9 million are unsecured.  The loan carries interest at the rate of            5 percent per annum from 1 January 2002 to 31 December 2002 and at the MLR per annum determined by Siam Commercial Bank Public Company Limited from 1 January 2003 to              31 December 2005.  Principal and interest are repayable in monthly installments from 1 January 2003 to 31 December 2005 (36 instalments).

(UNAUDITED BUT REVIEWED)
18.2	Long-term loans from related companies
Banpan Research Laboratory Company Limited
A Baht 2.5 million long-term loan to Rangsit Polymer Company Limited, which is unsecured.  The loan carries interest at the rate of 8 percent per annum.
Pan Asia Holding Company Limited
The long-term loan of Innovation Footwear Company Limited from Pan Asia Holding Company Limited amounting to Baht 74 million which is unsecured.  The loan carries interest at the rate of 7 percent per annum.  Principal and interest are repayable in quarterly installments from December 2003 to September 2008 (20 installments).
19.	LONG-TERM LOANS
(Unit : Thousand Baht)
		Consolidated	
	Note	30 June 2004	31 December 2003	
Long-term loans				
Performance Rubber Company Limited	19.1	13,888	17,224	
Nongchang Rubber Company Limited	19.2	53,319	58,639	
Uthai Bangkok Rubber Company Limited	19.3	8,610	12,890	
Narai Bangkok Rubber Company Limited	19.4	28,776	34,316	
Total long-term loans		104,593	123,069	
Less : Current portion of long-term loans				
     Performance Rubber Company Limited		(6,672)	(6,672)	
     Nongchang Rubber Company Limited		(10,640)	(10,640)	
     Uthai Bangkok Rubber Company Limited		(8,560)	(8,560)	
     Narai Bangkok Rubber Company Limited		(11,079)	(11,079)	
		(36,951)	(36,951)	
Long-term loans - net of current portion				
Performance Rubber Company Limited		7,216	10,552	
Nongchang Rubber Company Limited		42,679	47,999	
Uthai Bangkok Rubber Company Limited		50	4,330	
Narai Bangkok Rubber Company Limited		17,697	23,237	
Long-term loans – net of current portion		67,642	86,118	

(UNAUDITED BUT REVIEWED)
19.1	Performance Rubber Company Limited
This subsidiary was granted a Baht 36 million loan by a bank, carrying interest at MLR per annum and guaranteed by the Company. On 10 August 2001, the subsidiary entered into an additional memorandum of loan agreement amendment, under which the loan conditions were changed as follows: -
1)	Interest is payable in monthly instalments, commencing from the month following the first drawdown.
2)	Principal repayment schedule
-	Instalments of Baht 500,000 for September and December 1999
-	Instalments of Baht 1,000,000 for March and June 2000
-	Instalments of Baht 2,000,000 for September 2000
-	Instalments of Baht 713,262 for December 2000
-	Instalments of Baht 10,922 for March 2001
-	Instalments of Baht 300,000 per month for the period as from August 2001 to July 2002
-	Instalments of Baht 556,000 per month for the period as from August 2002 to July 2006
19.2	Nongchang Rubber Company Limited
	On 1 August 2002, this subsidiary entered into a debt restructuring agreement with a bank covering debt principal of Baht 74.6 million.  The interest rate is to be reduced as follows :-
-	Interest is charged at the rate of 6 percent per annum for the period form 1 August 2002 to 31 July 2004.  The repayment of interest is to be made in monthly instalments starting from 30 August 2002.
-	Interest is charged at the Minimum Loan Rate (MLR) per annum for the period from 1 August 2004 to 31 May 2009.  The repayment is to be made in monthly instalments.

(UNAUDITED BUT REVIEWED)
	The repayment of the principal amounting to Baht 74.6 million is to be made in quarterly installments of at least Baht 2.66 million each for the period from 30 August 2002 to 30 May 2009 (28 instalments).
19.3	Uthai Bangkok Rubber Company Limited
	On 1 August 2002, this subsidiary entered into a debt restructuring agreement with a bank covering debt principal of Baht 25.7 million.  The interest rate is to be reduced as follows :-
-	Interest is charged at the rate of 6 percent per annum for the period form 1 August 2002 to 31 July 2003.  The repayment of interest is to be made in monthly instalments starting from 30 August 2002.
-	Interest is charged at the Minimum Loan Rate (MLR) per annum for the period from 1 August 2003 to 31 May 2005.  The repayment is to be made in monthly instalments.
	The repayment of the principal amounting to Baht 25.7 million is to be made in quarterly installments of at least Baht 2.14 million each for the period from 30 August 2002 to 30 May 2005 (12 instalments).
19.4	Narai Bangkok Rubber Company Limited
	On 4 August 2003, this subsidiary entered into a debt restructuring agreement with a bank covering debt principal of Baht 49.9 million.  The interest rate is to be reduced as follows :-
-	Interest is charged at the rate of 5.5 percent per annum for the period form 4 August 2003 to 3 August 2004.
-	Interest is charged at the rate of 6 percent per annum for the period from 4 August 2004 to 3 August 2005.
-	Interest is charged at the Minimum Loan Rate (MLR) per annum for the period from 4 August 2005 to 31 December 2007.
	The repayment of the principal amounting to Baht 49.9 million is to be made in quarterly installments of at least Baht 2.77 million each for the period from 30 September 2003 to 31 December 2007 (18 instalments).

(UNAUDITED BUT REVIEWED)
20.	EXCESS OF LOSS FROM INVESTMENTS IN SUBSIDIARIES OVER THEIR COSTS
(Unit : Thousand Baht)
	Investments accounted for    under equity method	Debtors under guarantee obligations to subsidiaries	Net investments accounted for under equity method	
	30 June	31 December	30 June	31 December	30 June	31 December	
	2004	2003	2004	2003	2004	2003	
Subsidiaries							
Narai Bangkok Rubber Company Limited	(53,906)	(52,754)	-	-	(53,906)	(52,754)	
Esastampa (Thailand) Company Limited	 (64,606)	 (63,144)	20,332	20,332	 (44,274)	 (42,812)	
Rangsit Polymer Company Limited	(168,375)	(162,641)	56,355	55,667	(112,020)	(106,974)	
Sena Engineering Company Limited	(50,115)	(45,823)	-	-	(50,115)	(45,823)	
Principe (Thailand) Company							
	Limited	(73,778)	(73,195)	2,991	2,991	(70,787)	(70,204)	
Innovation Footwear Company Limited	(63,605)	(48,059)	-	-	(63,605)	(48,059)	
Bangkok Rubber Saharattana Company							
	Limited	(82,054)	(78,338)	-	-	(82,054)	(78,338)	
Total	(556,439)	(523,954)	79,678	78,990	(476,761)	(444,964)	
21.	GUARANTEE OBLIGATIONS TO RELATED COMPANIES
(Unit : Thousand Baht)
	Consolidated	The Company Only	
	30 June  2004	31 December 2003	30 June  2004	31 December 2003	
Subsidiary					
Rangsit Polymer Company Limited	43,533	42,073	-	-	
Total	43,533	42,073	-	-	
Associated companies					
Rayong Bangkok Rubber Company Limited	62,393	62,393	62,393	62,393	
Gavallini Giulio Pellami (Thailand) Company Limited	198	4,256	198	4,256	
Total	62,591	66,649	62,591	66,649	

(UNAUDITED BUT REVIEWED)
 (Unit : Thousand Baht)
	Consolidated	The Company Only	
	30 June  2004	31 December 2003	30 June  2004	31 December 2003	
Related companies					
Bangkok Rubberland Engineering Company Limited	54,231	54,231	54,231	54,231	
Saha Rattananakorn Company Limited	1,090,022	1,090,022	1,090,022	1,090,022	
Banpan Engineering and Holding Company Limited	338,406	338,406	338,406	338,406	
Total	1,482,659	1,482,659	1,482,659	1,482,659	
Total 	1,588,783	1,591,381	1,545,250	1,549,308	
	During the period of 2004 and the year 2003, the Company repaid the liabilities and issued ordinary shares in settlement of its liabilities under the credit guarantees it had provided to related companies, as detailed below :-
(Unit : Million Baht)
	For the six-month		
	period ended	For the year ended	
	30 June 2004	31 December 2003	
Rangsit Polymer Company Limited	2.5	39.2	
Rayong Bangkok Rubber Company Limited	4.6	22.1	
Srisuree Company Limited	3.8	85.7	
Esastampa (Thailand) Company Limited	-	20.3	
Principe (Thailand) Company Limited	-	3.0	
Gavallini Giulio Pellami (Thailand) Company Limited	1.7	7.2	
Bankok Rubberland Engineering Company Limited	6.9	12.8	
Banpan Engineering and Holding Company Limited	20.5	10.1	
Total	40.0	200.4	

(UNAUDITED BUT REVIEWED)
22.	CORPORATE INCOME TAX
Corporate income tax has been calculated on the subsidiaries’ non-promoted earnings after adding back certain provisions and expenses which are disallowable for tax computation purposes, deducting dividend income which is exempted from tax and deducting tax loss brought forward from prior years.
23.	STATEMENTS OF CASH FLOWS
	Cash and cash equivalents as reflected in the statements of cash flows consist of :-
(Unit : Thousand Baht)
	Consolidated	The Company Only	
	30 June 2004	30 June 2003	30 June 2004	30 June 2003	
Cash and deposits at financial institutions	121,994	155,906	89,263	102,334	
Cash and cash equivalents	121,994	155,906	89,263	102,334	
24.	RELATED PARTY TRANSACTIONS
During the periods, the Company had significant business transactions with its subsidiary, associated and related companies (related by way of share holding or common shareholders and/or directors).  Such significant transactions for the six-month periods ended 30 June 2004 and 2003, which have been concluded below :-
(Unit : Thousand Baht)
	For the six-month periods ended 30 June		
	Consolidated	The Company Only	Pricing policy	
	2004	2003	2004	2003		
Transactions with subsidiary companies :					
(Eliminated from consolidated financial statements)						
Sales of materials and shoes	-	-	5,731	5,349	Cost plus margin	
Purchase	-	-	59,637	67,245	Cost plus margin	
Interest income	-	-	6,503	4,333	As indicated in the agreement	
Hire of work expense	-	-	69,536	109,117	Cost plus margin	
Rental income	-	-	8,117	7,359	As indicated in the agreement	
Service income	-	-	769	1,331	As indicated in the agreement	
Marketing service income	-	-	4,200	4,207	As indicated in the agreement	
Research and development expense	-	-	1,963	-	As indicated in the agreement	

(UNAUDITED BUT REVIEWED)
(Unit : Thousand Baht)
	For the six-month periods ended 30 June		
	Consolidated	The Company Only	Pricing policy	
	2004	2003	2004	2003		
Transactions with associated companies :					
Sales of materials and shoes	216,255	236,803	20,075	1,212	Cost plus margin	
Purchase	40,044	66,355	4,666	6,962	Cost plus margin	
Interest income	889	16,577	889	16,474	As indicated in the agreement	
Dividend income	3,674	10,949	3,674	10,949	As announced	
Rental income	5,403	6,238	5,403	6,178	As indicated in the agreement	
Income from hire of work	10,619	70,087	-	-	Cost plus margin	
Hire of work expense	70,678	76,702	63,449	76,022	Cost plus margin	
Service income	970	1,506	970	1,044	As indicated in the agreement	
Marketing service income	818	3,967	818	830	As indicated in the agreement	
Transactions with related companies :						
Sales of materials and shoes	212,249	115,485	7,648	3,903	Cost plus margin	
Purchase	196,514	163,243	154,739	140,157	Cost plus margin	
Interest income	7,645	34,840	7,645	34,840	As indicated in the agreement	
Dividend income	5,000	38,385	5,000	38,385	As announced	
Interest expense	3,995	809	-	-	As indicated in the agreement	
Income from hire of work	3,709	9,796	157	1,755	Cost plus margin	
Hire of work expense	32,109	42,909	27,863	43,009	Cost plus margin	
Service income	1,008	526	1,008	987	As indicated in the agreement	
Service expense	1,000	1,409	840	840	As indicated in the agreement	
Rental income	3,069	929	1,219	962	As indicated in the agreement	
Rental expense	5,973	2,831	-	-	As indicated in the agreement	
Research and development expense	4,982	484	4,099	-	As indicated in the agreement	
Marketing service income	3,578	4,082	3,578	4,082	As indicated in the agreement	
Significant outstanding balances as at 30 June 2004 and 31 December 2003 are summarized below:
           										
           										(Unit : Thousand Baht)
	Consolidated	The Company Only	
	30 June	31 December	30 June	31 December	
	2004	2003	2004	2003	
Trade accounts and notes receivable – related companies 				
Subsidiaries					
   (Eliminated from consolidated financial statements)					
Narai Bangkok Rubber Company Limited	-	-	60	16	
Performance Rubber Company Limited	-	-	268	85	
Thanakorn Injection Company Limited	-	-	175	156	
Bangkok Rubber Saharattana Company Limited	-	-	4,138	5,386	
Esastampa (Thailand) Company Limited	-	-	60	60	
Innovation Footwear Company Limited	-	-	2,525	2,353	
Others	-	-	529	44	
	Total	-	-	7,755	8,100	

(UNAUDITED BUT REVIEWED)
           										(Unit : Thousand Baht)
	Consolidated	The Company Only	
	30 June	31 December	30 June	31 December	
	2004	2003	2004	2003	
Associated companies					
P.S.R. Footwear Company Limited	3,439	5,677	44	1,500	
Bangkok Athletic Company Limited 	97,252	65,047	21,767	1,510	
Innovation Nakornluang Footwear Company Limited	18,530	25,964	20	10	
Chainat Rubber Company Limited	-	2,438	-	-	
Others	75	50	-	-	
	Total	119,296	99,176	21,831	3,020	
Related companies					
Pan Asia Footwear Public Company Limited	25,499	37,049	138	31	
Rangsit Footwear Company Limited	7,376	7,687	1,994	1,579	
Casa Di Moda Company Limited	100	3,225	-	-	
Pijit P.S.R. Footwear Company Limited	-	2,918	-	-	
Footwear Tech 1530 Company Limited	2,892	671	6	-	
Excellence Rubber Company Limited	3,268	443	407	39	
Others	2,717	3,068	916	2,017	
	Total	41,852	55,061	3,461	3,666	

Total	161,148	154,237	33,047	14,786	
Less : Allowance for doubtful accounts	(272)	(272)	(96)	(96)	
Net	160,876	153,965	32,951	14,690	
Advance to subsidiary company					
     (Eliminated from consolidated financial statements) 					
Bangkok Rubber Saharattana Company Limited	-	-	19,439	19,439	
	-	-	19,439	19,439	

(UNAUDITED BUT REVIEWED)
           										(Unit : Thousand Baht)
	Consolidated	The Company Only	
	30 June	31 December	30 June	31 December	
	2004	2003	2004	2003	
Accounts payable – related companies					
Subsidiaries					
     (Eliminated from consolidated financial statements) 					
Narai Bangkok Rubber Company Limited	-	-	11,410	8,950	
Performance Rubber Company Limited	-	-	8,107	6,219	
Esastampa (Thailand) Company Limited	-	-	78	78	
Rangsit Polymer Company Limited	-	-	685	2,780	
Sena Engineering Company Limited	-	-	2,375	1,460	
Rattananakorn Engineering Company Limited	-	-	44	100	
Innovation Footwear Company Limited	-	-	612	29,382	
Thanakom Injection Company Limited	-	-	(2)	135	
Others	-	-	162	195	
	Total	-	-	23,471	49,299	
Associated companies  					
P.I. Industry Company Limited	9,089	932	-	-	
Innovation Nakornluang Footwear Company Limited	2,756	17,884	-	5,249	
Chainat Rubber Company Limited	8,015	8,507	7,979	8,471	
Hankha Bangkok Rubber Company Limited	10,032	14,641	10,032	14,641	
Sungshin Bangkok Rubber Company Limited	897	4,491	-	-	
Others	2,285	875	1,883	811	
	Total	33,074	47,330	19,894	29,172	

(UNAUDITED BUT REVIEWED)
           										(Unit : Thousand Baht)
	Consolidated	The Company Only	
	30 June	31 December	30 June	31 December	
	2004	2003	2004	2003	
Related companies					
Pan Longjohn Company Limited	1,888	-	1,655	-	
Srisuree Company Limited	1,193	-	44	-	
Pontex (Thailand) Company Limited	2,178	6,536	1,273	4,694	
Ecco (Thailand) Company Limited	8,161	-	8,161	-	
Pijit P.S.R. Footwear Company Limited	1,705	4,797	1,705	4,797	
Internatioanl Curity Footwear Company Limited	3,301	4,266	2,872	3,796	
Pek Industry Company Limited	1,861	2,188	1,303	1,809	
Thai Sungshin Newmaterial Company Limited	10,786	8,159	10,786	             8,159	
Modern Technology Component Company Limited	9,058	24,834	4,596	19,174	
Pan Tech R&D Company Limited	1,347	1,132	1,347	1,129	
Advantage Footwear Company Limited	18,948	15,142	11,214	11,996	
Excellent Rubber Company Limited	4,877	7,590	161	608	
Pek Engineering Company Limited	786	1,375	-	1,370	
Pan Asia Leather Company Limited	2,798	5,464	2,722	5,342	
Rangsit Footwear Company Limited	3,613	4,235	3,580	3,242	
Others	3,540	16,984	2,646	2,351	
	Total	76,040	102,702	54,065	68,467	
	Total	109,114	150,032	97,430	146,938	
Pricing policies of significant agreements which relate to the business transactions are summarised   below :-
Company’s name	Term (year)	The beginning period	Rate	
Agreement to appoint the marketing representative – Bangkok Rubber Public Company Limited	
Innovation Footwear	-	From January 2002	-	0.5% of total monthly sales for the period from January to December 2002.
-	1% of total monthly sales for the period from January 2003 onwards. (Only sales to Reebok Trading (Fareast) Ltd.).	

(UNAUDITED BUT REVIEWED)
Company’s name	Term (year)	The beginning period	Rate	
Innovation Nakornluang Footwear	-	From January 2002	-	0.5% of total monthly sales for the period as from January to December 2002.
-	1% of total monthly sales for the period as from January 2003 onwards. (Only sales to The Timberland Company, Inc.)	
Rangsit Footwear	-	From January 2002	-	0.5% of total monthly sales from January to December 2002.
-	1% of total monthly sales for the period from January 2003 onwards.  (Only sales made through Bangkok Rubber Public Company Limited)	
				
Trademark agreement – Bangkok Rubber Public Company Limited	
Casa Di Moda	1	1 January 2004	License fee of Baht 10,000 per annum	
Bangkok Athletic	1	1 January 2004	License fee of Baht 40,000 per annum	
				
Land and/or building rental agreement – Bangkok Rubber Public Company Limited	
Related companies	1	1 January 2004	As per mutually concluded agreement	
Banpan Engineering and 	10	26 November 2002	Leasehold charge of Baht 400,000 and rental of 	
   Holding				Baht 60,000 per month	
				
Business management agreement – Bangkok Athletic Company Limited	
Thanakom Injection	1	1 July 2004	Service fee of Baht 1,800,000 per annum	
				
Research and development agreement – Banpan Research Laboratory Company Limited	
Innovation Footwear	1	1 July 2004	Service fee of Baht 135,350 for 6 instalments	
Bangkok Rubber	1	1 January 2004	Service fee of Baht 913,200 for 6 instalments	
				
Staff development agreement – Panpolytechnic Company Limited	
Bangkok Rubber and subsidiaries	
1	
1 July 2004	
As per mutually concluded agreement	
				
Tax service agreement – F.N. Infinity Company Limited	
Bangkok Rubber and subsidiaries	
1	
1 January 2004	
As per mutually concluded agreement	

(UNAUDITED BUT REVIEWED)
Company’s name	Term (year)	The beginning period	Rate	
Land and/or building rental agreement - Banpan Engineering and Holding Company Limited	
Thanakom Injection	3	1 November 2003	Rental of Baht 368,500 per month	
		to 31 October 2006		
Rattananakorn Engineering	1	16 January 2004	Rental of Baht 120,000 per month	
	2	16 January 2005	Rental of Baht 150,000 per month	
				
Land service agreement - Pan Bio Tech Company Limited	
Bangkok Rubber	1	1 February 2004	Service fee of Baht 294,900 per month	
	
Land rental agreement - Sahapattana Inter Holding Public Company Limited	
Bangkok Rubber	2	1 January 2003	Rental of Baht 138,816 per month	
	
Building rental agreement - Saha Pathanapibul Public Company Limited	
Bangkok Rubber	1	1 October 2003	Rental of Baht 368,800 per month	

Sewing machine rental agreement - Pan Comp International Company Limited	
Bangkok Rubber	1	1 September 2003	Rental of Baht 252,000 per month	
		to 31 August 2004		
				
Sewing machine rental agreement - Kabinburi Panasia Footwear Company Limited	
Bangkok Rubber	1	1 January 2004	Rental of Baht 160,000 per month	
				
Produce design service agreement - Pan Tech R&D Company Limited	
Bangkok Rubber	1	1 January 2004	Service fee of Baht 800,000 per month	
				
Car rental agreement - Banpan Engineering and Holding Company Limited	
Bangkok Rubber and subsidiaries	
1-8	
21 May 2001	
As per mutually concluded agreement	
		to 30 October 2010		
				
Car service agreement - Banpan Engineering and Holding Company Limited	
Innovation Footwear	1	1 September 2003	Service fee of Baht 13,500 per month	
				
Copy machine rental agreement - Sun Color O.A. Company Limited	
Bangkok Rubber and subsidiaries	
1	
1 February 2004	
As per mutually concluded agreement	
				
Security services agreement - Banpan Engineering and Holding Company Limited	
Bangkok Rubber	1	1 July 2004	Rental of Baht 114,400 per month	
				
Raw material carrier agreement - Banpan Engineering and Holding Company Limited	
Bangkok Rubber	1	4 August 2003	Service fee of Baht 105,000 per month	

(UNAUDITED BUT REVIEWED)
Company’s name	Term (year)	The beginning period	Rate	
Garden service agreement - Banpan Engineering and Holding Company Limited	
Bangkok Rubber	1	1 February 2004	Service fee of Baht 207,845 per month	
25.	FINANCIAL INFORMATION BY SEGMENT
The operations of the Company and its subsidiaries involve the single industry segment of the manufacture of footwear.  Sales are made both in Bangkok and provincial markets. The results of the operations by geographic segment for the six-month periods ended 30 June 2004 and 2003 are as follows :-
(Unit : Thousand Baht)
	Bangkok 	Other provinces	Total	
	30 June	30 June	30 June	30 June	30 June	30 June	
	2004	2003	2004	2003	2004	2003	
Consolidated							
Sales and service income	674,276	915,550	1,450,281	1,271,258	2,124,557	2,186,808	
Cost of sales and services	(655,773)	(789,529)	(1,390,744)	(1,150,463)	(2,046,517)	(1,939,992)	
Gross profit 	18,503	126,021	59,537	120,795	78,040	246,816	
Other income					57,408	145,880	
Shares of profits of investments accounted for under equity method					
2,714	
31,008	
Selling and administrative expenses					(195,101)	(165,296)	
Doubtful debts for long-term loans							
   and interest receivables – related							
   companies					24,294	(31,689)	
Guarantee obligations to related							
   companies					-	(23,517)	
Allowance for obsolete stock					(37,342)	-	
Exchange gain 					4,933	2,592	
Earnings (loss) before interest 							
   expenses and corporate income tax					 (65,054)	205,794	
Interest expenses					(24,368)	(17,353)	
Corporate income tax					(145)	(420)	
Earnings (loss) after corporate							
   income tax					 (89,567)	188,021	
Gain attributable to minority interest					(6,122)	5,244	
Earnings (loss) from ordinary 							
   activities					(95,689)	193,265	
Extraordinary item - gain on debt							
   restructuring					101,424	150,217	
Net earnings for the period					5,735	343,482	
 (UNAUDITED BUT REVIEWED)
 (Unit : Thousand Baht)
	Bangkok 	Other provinces	Total	
	30 June	31 December	30 June	31 December	30 June	31 December	
	2004	2003	2004	2003	2004	2003	
Property, plant and equipment - net	354,400	255,972	449,011	463,691	803,411	719,663	
Total assets					3,112,557	3,175,200	
 (Unit : Thousand Baht)
	Bangkok 	Other provinces	Total	
	30 June	30 June	30 June	30 June	30 June	30 June	
	2004	2003	2004	2003	2004	2003	
The Company Only							
Sales and service income	674,276	915,550	573,231	806,904	1,247,507	1,722,454	
Cost of sales and services	(655,773)	(789,529)	(580,138)	(732,583)	(1,235,911)	(1,522,112)	
Gross profit (loss)	18,503	126,021	(6,907)	74,321	11,596	200,342	
Other income					51,404	139,609	
Shares of profits (loss) of investments							
  accounted for under equity method					 (28,823)	15,857	
Selling and administrative expenses					(110,197)	(107,051)	
Doubtful debts for long-term loans 							
   and interest receivables – related							
   Companies					24,294	(31,689)	
Guarantee obligations to related							
   Companies					-	(23,517)	
Allowance for obsolete stock					(38,000)	-	
Gain on exchange					3,275	2,131	
Earnings (loss) before interest							
   expenses and corporate income tax					 (86,451)	195,682	
Interest expenses					(9,238)	(2,417)	
Earnings (loss) from ordinary							
   activities					(95,689)	193,265	
Extraordinary item - gain on debt							
   restructuring					101,424	150,217	
Net earnings for the period					5,735	343,482	

 (UNAUDITED BUT REVIEWED)
 (Unit : Thousand Baht)
	Bangkok 	Other provinces	Total	
	30 June	31 December	30 June	31 December	30 June	31 December	
	2004	2003	2004	2003	2004	2003	
Property, plant and equipment - net	354,400	255,972	186,642	186,889	541,042	442,861	
Total assets					2,793,947	2,813,860	
26.  PROMOTIONAL PRIVILEGES
By virtue of the provisions of the Investment Promotion Act B.E. 2520, the Company and its subsidiaries have been granted certain privileges, and must comply with certain conditions stipulated in the promotion certificates.
Company’s Name	Promoted Business	Location	Privileges	
Bangkok Rubber Public Company Limited	Manufacture of footwear	Bangkok and Ayudhaya	-	Exemption from import duty on raw materials and necessary supplies imported.
-	Exemption from import duty on goods which are imported and then re-exported.	
Bangkok Rubber Development Center Company Limited	Manufacture of shoe uppers 	Tak	-	Not yet utilized privileges.	
Narai Bangkok Rubber Company Limited	Manufacture of shoe uppers 	Lopburi	-	Exemption from corporate income tax for the promoted activities for a period of eight years.
-	A 50 percent reduction of corporate income tax for a period of five years after expiration of the exemption period.	
Performance Rubber Company Limited	Manufacture of shoe soles	Lopburi	-	Exemption from corporate income tax for the promoted activities for a period of eight years.
-	A 50 percent reduction of corporate income tax for a period of five years after expiration of the exemption period.	
Esastampa (Thailand) Company Limited	Production of leather for tannery, printing, wearing and knitting	Ayudhaya	-	Not yet utilized privileges.	
Principe  (Thailand) Company Limited	Manufacture of shoe soles	Chainat	-	Exemption from corporate income tax for the promoted activities for a period of seven years.	
Rattananakorn Engineering Company Limited	Manufacture of machinery and equipment	Ayudhaya	-	Exemption from corporate income tax for the promoted activities for a period of seven years.	

(UNAUDITED BUT REVIEWED)
Company’s Name	Promoted Business	Location	Privileges	
Uthai Bangkok Rubber Company Limited	Manufacture of shoe uppers	Uthaithani	-	Exemption from corporate income tax for the promoted activities for a period of eight years.
-	A 50 percent reduction of corporate income tax for a period of five years after expiration of the exemption period.	
Nongchang Rubber Company Limited	Manufacture of shoe soles	Uthaithani	-	Exemption from corporate income tax for the promoted activities for a period of eight years.
-	A 50 percent reduction of corporate income tax for a period of five years after expiration of the exemption period.	
Bangkok Rubber Saharattana Company Limited	Manufacture of footwear	Chainat	-	Exemption from corporate income tax for the promoted activities for a period of eight years.
-	A 50 percent reduction of corporate income tax for a period of five years after expiration of the exemption period.	
	The income of the Company and its subsidiaries for the six-month periods ended 30 June 2004 and 2003 can be segregated between promoted and non-promoted business as follows :-
(Unit : Thousand Baht)
	Consolidated	
	30 June 2004	30 June 2003	
		Non -			Non -		
	Promoted 	promoted		Promoted	Promoted		
	business	business	Total	business	Business	Total	
Revenues							
Sales and service income							
   Domestic	163,172	457,062	620,234	206,080	380,185	586,265	
   Export	-	1,676,689	1,676,689	-	1,795,066	1,795,066	
Total	163,172	2,133,751	2,296,923	206,080	2,175,251	2,381,331	
Interest income	5	15,107	15,112	26	56,278	56,304	
Dividend income	-	5,000	5,000	-	38,385	38,385	
Exchange gain (loss)	1	4,932	4,933	(2)	2,594	2,592	
Rental income	-	17,562	17,562	-	15,465	15,465	
Other income	9,413	29,957	39,370	15,035	37,952	52,987	
Total	172,591	2,206,309	2,378,900	221,139	2,325,925	2,547,064	
Less: Related party transactions			(192,002)			(211,784)	
			2,186,898			2,335,280	

(UNAUDITED BUT REVIEWED)
 (Unit : Thousand Baht)
	The Company Only	
	30 June 2004	30 June 2003	
		Non -			Non - 		
	Promoted 	promoted		Promoted	promoted		
	business	business	Total	business	business	Total	
Revenues							
Sales and service income							
   Domestic	-	51,725	51,725	-	34,077	34,077	
   Export	-	1,195,782	1,195,782	-	1,688,377	1,688,377	
Total	-	1,247,507	1,247,507	-	1,722,454	1,722,454	
Interest income	-	15,095	15,095	-	55,683	55,683	
Dividend income	-	5,000	5,000	-	38,385	38,385	
Gain on exchange	-	3,275	3,275	-	2,131	2,131	
Rental income	-	15,628	15,628	-	15,311	15,311	
Other income	-	15,681	15,681	-	30,230	30,230	
Total	-	1,302,186	1,302,186	-	1,864,194	1,864,194	
27.	COMMITMENTS
As at 30 June 2004, the Company and its subsidiaries have the following commitments.
27.1	The Company and its subsidiaries have commitments relating to land, building, factory and service rental agreements which future payments are required in the amount as follows :-
Year	Million Baht	
2004	19.6	
2005 - 2008	15.9	
27.2	The Company and its subsidiaries have significant commitments which future payments are required as follows :-
(Unit: Million Baht)
	2004	2005 - 2010	Total	
Car rental agreements	10.3	77.8	88.1	

(UNAUDITED BUT REVIEWED)
28.	LETTER OF GUARANTEES
28.1	As at 30 June 2004, there were outstanding letters of guarantees issued by banks on behalf of the Company amounting to approximately Baht 58.1 million in relation to commitments in carrying the ordinary courses of business of the Company.
28.2	As at 30 June 2004, there were outstanding letters of guarantees issued by banks on behalf of the subsidiaries amounting to approximately Baht 21.1 million in relation to commitments in carrying the ordinary courses of businesses of the subsidiaries.
29.	CONTINGENT LIABILITIES
	As at 30 June 2004, the Company and its subsidiaries have the following contingent liabilities :-
	29.1	Guarantees
		The Company has the following contingent liabilities in respect of guarantees of loans and credit facilities provided to subsidiary, associated and related companies in Baht and US dollars (exchange rate as at 30 June 2004 : Baht 41.0305 per USD).
(Unit : Million Baht)
	30 June 2004	
	Guaranteed facility	Facility used	
Subsidiaries			
Narai Bangkok Rubber Company Limited	87.0	32.8	
Performance Rubber Company Limited	62.0	19.9	
Innovation Footwear Company Limited	567.1	159.2	
	716.1	211.9	
Associated companies			
P.S.R. Footwear Company Limited	348.4	164.7	
Sungshin Bangkok Rubber Company Limited	24.1	24.1	
	372.5	188.8	
Related companies			
Rangsit Footwear Company Limited 	1,119.1	634.6	
Pijit P.S.R. Footwear Company Limited	85.0	26.1	
Suntec Footwear Corporation – Hong Kong	123.1	68.8	
	1,327.2	729.5	
	2,415.8	1,130.2	

(UNAUDITED BUT REVIEWED)
	29.2	Litigation
The Company has been sued by the Metropolitan Electricity Authority for retrospective payment of electricity charges.  The Metropolitan Electricity Authority has stated that the electricity meter showed a lower than normal charge and has sued for a total of Baht 7.8 million.  The electricity meter was installed by the Metropolitan Electricity Authority, and the management believe that the Company committed no wrong and have therefore not set aside any provision for the contingent losses.  At present, the case has been temporarily suspended.
	29.3	Customs Department creditor
		The Customs Department had filed a petition with the Central Bankruptcy Court for payment of duty liabilities totaling Baht 459.1 million.  The Court has granted permission for the Customs Department to receive payment equal to the amount claimed less the duty on goods under the bills of lading for the period January 1997 to March 1999, which the Company is entitled to refund.  Nevertheless, the Company has set aside provision for contingent losses amounting to Baht 31.5 million of duty on goods under the bills of lading for the period April 1994 to December 1996.
30.	FINANCIAL INSTRUMENTS
30.1	Financial risk management and policies
The Company and its subsidiaries are exposed to risks from changes in market interest rates and currency exchange rates.  The Company and its subsidiaries use derivative instruments as and when they consider appropriate to manage such risks.  They do not hold or issue derivative financial instruments for speculative or trading purposes.
30.2	Interest rate risk
The interest rate risk is the risk that future movements in market interest rates will affect the results of the Company and its subsidiaries’ operations and their cash flows.  The Company and its subsidiaries’ exposure to interest rate risk relate primarily to their deposits with financial institutions, bank overdrafts and loans. The Company and its subsidiaries do not use derivative financial instruments to hedge such risk.

(UNAUDITED BUT REVIEWED)
30.3	Foreign currency risk
The Company and its subsidiaries’ exposures to foreign currency risk relate primarily to their receivables and payables which are denominated in foreign currencies.
The Company primarily utilised forward exchange contracts with maturities of less than one year to hedge those financial assets and liabilities. Material forward exchange contracts which remained outstanding on 30 June 2004 are summarised below: -
		Forward contract	Period to maturity	
Currencies	’000	exchange rate	(from balance sheet date)	
USD	1,177	39.46 - 39.55	3 - 4 months	
The Company has not estimated the fair value of the above forward exchange contracts since the individual contracts have a short period to maturity and are insignificant value.
Below is a summary of the Company and its subsidiaries’ foreign currency-denominated assets/liabilities as at 30 June 2004 which were not hedged by forward exchange contracts or similar hedging instruments.
(Unit : Thousand)
		Consolidated	The Company Only	
	Foreign currency	Amount	Amount	
	Assets				
Trade accounts receivable	USD	5,106	3,518	
	Euro	374	-	
	Liabilities				
Trust receipts	USD	2,160	1,763	
	Euro	24	24	
Trade accounts payable	USD	1,103	585	
	Euro	95	80	

(UNAUDITED BUT REVIEWED)
The exchange rates for translation of the foreign currency assets and liabilities as at 30 June 2004 are as follows: -
(Unit : Baht)
		Assets	Liabilities	
USD		40.8363	41.0305	
Euro		49.2272	49.7732	
30.4	Credit risk
It is the policy of the Company and its subsidiaries to enter into financial instruments with creditworthy counterparties.  Therefore, the Company and its subsidiaries do not expect any material losses to arise from the counterparties’ failure to perform their obligations under the financial instruments.
30.5	Fair value
	As at 30 June 2004, the aggregate carrying values of the financial assets and liabilities of the Company and its subsidiaries do not materially differ from their fair value.
31.	RECLASSIFICATION
	Certain amounts in the balance sheet as at 31 December 2003 have been reclassified to conform to the current period’s classification, with no effect on previously reported shareholders’ equity.
32.	APPROVAL OF INTERIM FINANCIAL STATEMENTS
	These interim financial statements have been approved by the director of B.R.C. Planner Company Limited (the Company’s plan administrator).