(UNAUDITED BUT REVIEWED)
CHRISTIANI & NIELSEN (THAI) PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES
NOTES TO INTERIM FINANCIAL STATEMENTS
1.	GENERAL INFORMATION
	1.1	Assumption underlying the preparation of the financial statements
		During the year 2002, the Company, as a parent company who provides guarantees to the subsidiaries, was claimed by creditors of its subsidiaries for the repayment of loans and guarantees totaling approximately Baht 1,429 million.  Under the situation and the financial status of the Company at that time, which still had significant deficit and capital deficit, the Company's management was of an opinion that the Company was not in capability to repay such liabilities.  The Company had therefore on 31 May 2002 lodged a petition for rehabilitation of its business with the Central Bankruptcy Court and the Court had on 8 July 2002 ordered for the rehabilitation of the Company's business in accordance with the Bankruptcy Act and had appointed CN Advisory Company Limited as planner.  
Following the Court's order for the rehabilitation of the Company's business, the debtors, creditors and lenders were invited by the Comptroller of Bankruptcy to lodge the claims for settlement of debts with the Company.  The total claims lodged by the appellants amounted to approximately Baht 10,945 million which exceeded the outstanding balances in the Company's accounts.  The difference mainly represented guarantee obligations and contract value.  The Company had inspected the evidence and lodged the opposition for the incorrect amounts of the claims and had on 15 January 2003 proposed its rehabilitation plan to the creditors and the plan was approved by the majority of its concerned trade and financial institution creditors on 18 February 2003 and subsequently agreed by the Central Bankruptcy Court on 2 May 2003 (the actions of which were detailed in Note 13) in which the Court appointed CN Advisory Company Limited as a plan administrator.  

(UNAUDITED BUT REVIEWED)
The Company had in 2003 implemented under the rehabilitation plan in which the capital restructuring, most of the group and debt restructuring plans had already been completed, the details of which were described in Note 13.  Since the Company had fulfilled the main processes under the rehabilitation plan and had considered setting up reserve for potential loss from guarantee obligations and other liabilities in the accounts, the management believes that the Company is able to fulfill the remaining processes under the rehabilitation plan and will request for release from the plan soon.  
		As part of the Company’s rehabilitation plan approved by the Stock Exchange of Thailand on          19 November 1996, the Company has discontinued the operations of certain units.  The net assets/liabilities and operating results of the discontinued operation units have been separately shown in the consolidated balance sheets and earnings statements.
	1.2	Basis for the preparation of interim financial statements
		These interim financial statements are prepared in accordance with Accounting Standards Pronouncement No. 41 “Interim Financial Reporting”, 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.
		These 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)
	1.3	Basis of consolidation
		These interim consolidated financial statements include the financial statements of Christiani & Nielsen (Thai) Public Company Limited and its subsidiaries (collectively called “the Group”) and have been prepared on the same basis as that applied for the consolidated financial statements for the year ended 31 December 2003, with no changes in the composition of the Group during the current period.  
		The financial statements of the overseas subsidiaries for the three-month and six-month periods ended 30 June 2004 as included in the consolidated financial statements were prepared by the management of those subsidiaries, and have not been reviewed by their auditors.  Their aggregate assets were approximately Baht 345 million or 15% of the consolidated assets as at 30 June 2004 and their aggregate revenues were approximately Baht 0.3 million and Baht 0.8 million for the three-month and six-month periods then ended respectively.
		The consolidated financial statements as at 30 June 2004 and for the three-month and six-month periods then ended included the proportion of the assets, liabilities, revenues and expenses of the Joint Venture, the balances of which were as follows :-
(Unit : Million Baht)
	Consolidated	
	2004	
Current assets	106	
Current liabilities	(94)	
Revenues	132	
Expenses	(126)	

(UNAUDITED BUT REVIEWED)
	1.4	Significant accounting policies
		These interim financial statements are prepared using the same accounting policies and method of computation as were used for the financial statements for the year ended 31 December 2003.
2.	CASH AND CASH EQUIVALENTS/restricted DEPOSITS 
	Cash and cash equivalents as at 30 June 2004 and 2003 as reflected in the statements of cash flows consisted of the following :-
(Unit : Thousand Baht)
	Consolidated	The Company Only	
	2004	2003	2004	2003	
Cash and deposits at banks	143,567	212,859	112,597	90,363	
Fixed deposits at banks	30,177	66,015	30,177	251	
Deposits at finance company	305,170	5,111	302,170	-	
Total	478,914	283,985	444,944	90,614	
Less : Restricted deposits 	(54,074)	(54,259)	(54,074)	(44,002)	
Cash and cash equivalents	424,840	229,726	390,870	46,612	
	As at 30 June 2004 and 31 December 2003, the Group had pledged their cash at banks of approximately Baht 54.1 million and Baht 58.7 million respectively (the Company Only : Baht 54.1 million and Baht 48.4 million respectively) with banks to secure the bank overdrafts and loans and the issuance of bank guarantees.

(UNAUDITED BUT REVIEWED)
3.	CONSTRUCTION CONTRACT DEBTORS
	The balance included amounts receivable from several construction projects of which the developers have experienced financial difficulties and delayed payments for the construction service provided and some of these projects have been subject to legal actions taken by the Company.  All outstanding contract debtors as at 30 June 2004 and 31 December 2003 were as follows :-
(Unit : Thousand Baht)
	Consolidated	The Company Only	
	30 June	31 December	30 June	31 December	
	2004	2003	2004	2003	
Construction contract debtors	500,557	667,534	501,366	685,836	
Retention payment under construction contracts	110,362	113,894	108,603	105,136	
Total	610,919	781,428	609,969	790,972	
Less : Allowance for doubtful accounts	(158,166)	(249,187)	(158,166)	(249,187)	
Construction contracts debtors, net	452,753	532,241	451,803	541,785	
	As at 30 June 2004 and 31 December 2003, the balance of construction contract debtors classified by aging was as follows :-
(Unit : Thousand Baht)
	Consolidated	The Company Only	
	30 June	31 December	30 June	31 December	
	2004	2003	2004	2003	
Overdue					
Not over 3 months	258,902	345,391	259,711	363,693	
3 - 6 months	4,586	32,726	4,586	32,726	
6 - 12 months	46,396	27,294	46,396	27,294	
Over 12 months	190,673	262,123	190,673	262,123	
	500,557	667,534	501,366	685,836	

(UNAUDITED BUT REVIEWED)
	The Company has transferred the calling right for the collections from the construction contract debtors of certain projects to a bank to secure the credit facilities of the Company granted by that bank.
	The consolidated construction costs after being adjusted realized gains or losses of the construction contracts up to 30 June 2004 were approximately Baht 5,626 million (The Company Only : Baht 5,455 million).
4.	RELATED PARTY TRANSACTIONS
	During the periods ended 30 June 2004 and 2003, the Company had significant business transactions with its Subsidiaries and Joint venture (which have been eliminated in the consolidated financial statements). Such transactions, which have been concluded on the terms and basis as determined by the Company and the Subsidiaries and Joint Venture and in the ordinary course of business, are summarised below :-
(Unit : Thousand Baht)
	Consolidated		
	For the three-month periods ended 30 June	For the six-month periods ended 30 June	Pricing and lending policy	
	2004	2003	2004	2003		
Transactions with the Joint Venture						
   Construction income	-	7,640	-	32,170	Cost plus margin	
 
(Unit : Thousand Baht)
	The Company Only 		
	For the three-month periods ended 30 June	For the six-month periods ended 30 June	Pricing and lending policy	
	2004	2003	2004	2003		
Transactions with the Subsidiaries					
   Rental and service income	472	3,230	848	5,269	Based on the prices agreed between the parties, which approximate the market price	
   Interest income	211	383	421	784	Interest rate at MOR plus 0.25% per annum	
   Management fee	600	600	1,200	1,200	Based on the prices agreed between the parties, which approximate the market price	
   Interest expenses	-	343	-	693	Interest rate at MLR plus 0.25% per annum	
Transactions with the Joint Venture						
   Construction income	30,014	78,423	72,967	166,182	Cost plus margin	
   Service income	600	600	1,200	1,200	Based on the prices agreed between the parties, which approximate the market price	
   Interest expenses	-	222	-	441	Fixed interest rate at 3% per annum	

(UNAUDITED BUT REVIEWED)
	The outstanding balances of the above transactions are separately shown in the balance sheets as follows :-
	Amounts due from and loans to the Subsidiaries
(Unit : Thousand Baht)
	The Company Only	
	30 June	31 December	
	2004	2003	
Amounts due from the Subsidiaries			
CNT Holdings Limited	2,807	7,261	
Christiani & Nielsen Construction (Thai) Company Limited	20,549	19,523	
Total amounts due from the Subsidiaries	23,356	26,784	
Loans to the Subsidiary			
Christiani & Nielsen Construction (Thai) Company Limited	13,500	13,500	
Total loans to the Subsidiary	13,500	13,500	
Total amounts due from and loans to the Subsidiaries	36,856	40,284	
	During the period, movements of loans to the Subsidiary were as follows :-
(Unit : Thousand Baht)
	The Company Only	
	Balances as at	Movements during the period	Balances as at 	
	1 January 2004	Increase	Decrease	30 June 2004	
Christiani & Nielsen Construction (Thai) Company Limited	13,500	-	-	13,500	
Total	13,500	-	-	13,500	

(UNAUDITED BUT REVIEWED)
	Amounts due to and loans from the Subsidiary and the Joint Venture
(Unit : Thousand Baht)
	The Company Only	
	30 June	31 December	
	2004	2003	
Amounts due to the Subsidiary			
CN Advisory Company Limited	1,207	835	
Total amounts due to the Subsidiary	1,207	835	
Amounts due to and loan from the Joint Venture			
NWR, ITD, CNT & AS Joint Venture	97	5,311	
Total amounts due to and loan from the Joint Venture	97	5,311	
Total amounts due to and loans from the Subsidiary and the Joint Venture	1,304	6,146	
5.	INVESTMENTS IN RELATED PARTIES ACCOUNTED FOR UNDER EQUITY METHOD / excess for losses over costs of investments accounted for under equity method
	Investments in related parties in the Company’s financial statements are the investments in the following companies :-
 (Unit : Thousand Baht)
		Investment value	
	Percentage of shareholding	Cost Method	Equity Method	
	30 June	31 December	30 June	31 December	30 June	31 December	
	2004	2003	2004	2003	2004	2003	
	Percent	Percent					
Investments in the Subsidiaries							
Construction business							
Christiani & Nielsen Construction (Thai) Company Limited	100.0	100.0	1,000	1,000	(30,363)	(30,481)	
Holding company							
CNT Holdings Limited	100.0	100.0	2,600,000	2,600,000	349,174	164,242	
Plan Administrator							
CN Advisory Company Limited	100.0	100.0	1,000	1,000	1,379	1,123	
Total investments in the Subsidiaries			2,602,000	2,602,000	320,190	134,884	

(UNAUDITED BUT REVIEWED)
(Unit : Thousand Baht)
		Investment value	
	Percentage of shareholding	Cost Method	Equity Method	
	30 June	31 December	30 June	31 December	30 June	31 December	
	2004	2003	2004	2003	2004	2003	
	Percent	Percent					
Investment in the Joint Venture							
Construction business							
NWR, ITD, CNT & AS Joint Venture	25.0	25.0	2,000	2,000	12,768	8,616	
Total investment in the Joint Venture			2,000	2,000	12,768	8,616	
Total investments in the Subsidiaries and the Joint Venture			2,604,000	2,604,000	332,958	143,500	
							
Presented as :							
Investments in related parties accounted for under equity method			363,321	173,981	
Excess for losses over costs of investments accounted for under equity method			(30,363)	(30,481)	
Total					332,958	143,500	
	As at 30 June 2004 and 31 December 2003, accumulated share of losses from investment in Christiani & Nielsen Construction (Thai) Company Limited exceeded costs of investments, the Company has separately shown such excess as “Excess for losses over costs of investments accounted for under equity method” under non-current liabilities in the balance sheets.
	Since 2002, the Company had invested in 25% interest in NWR, ITD, CNT & AS Joint Venture.  The Company had under equity method recorded share of profit from investment of approximately Baht 2 million and Baht 4 million respectively, for the three-month and six-month periods ended 30 June 2004, which was included in “Share of profit from investments under equity method” in the Company’s earnings statements (2003 : Baht 3.6 million and Baht 6 million respectively, presented net in “Share of loss from investments under equity method”).
	The Company has pledged shares of Christiani & Nielsen Construction (Thai) Company Limited and of CNT Holdings Limited with a bank to secure the credit facilities of the Company granted by that bank.

(UNAUDITED BUT REVIEWED)
	Net loss from investments in Subsidiaries
	In July 2003, Christiani & Nielsen A/S had filed for bankruptcy and the Company recognized loss from such company and Christiani & Nielsen Engineering Limited of totaling approximately Baht 398 million which was shown under the caption of “Net loss from investments in Subsidiaries” in the consolidated earnings statements for the three-month and six-month periods ended 30 June 2003.
6.	Investments in THE associates and other companies
	Investments in the associates and other companies consist of investments in the ordinary shares of the following companies :- 
	Percentage of shareholding	Consolidated	
	30 June	31 December	30 June	31 December	
	2004	2003	2004	2003	
	Percent	Percent	Thousand Baht	Thousand Baht	
Investments in the Associates					
International Machinery Supplies Co., Ltd.	31.94	31.94	7,500	7,500	
SCB Holding Co., Ltd.	-	20.00	-	6,000	
Total			7,500	13,500	
Less : Provision for diminution in value of investments			(7,500)	(9,500)	
Investments in the Associates - net			-	4,000	
Investments in other companies					
Saturn Inc.	10.50	10.50	2,218	2,218	
Phuket Land Development Co., Ltd.	15.00	15.00	3,000	3,000	
Total			5,218	5,218	
Less : Provision for diminution in value of investments			(3,000)	(3,000)	
Investments in other companies - net			2,218	2,218	
Total investments in the Associates and other companies - net			2,218	6,218	

(UNAUDITED BUT REVIEWED)
7.	INVESTMENTS IN REAL ESTATE
	The Company has mortgaged its 3 plots of land with a bank to secure the bank overdraft granted by that bank as discussed in Note 8.
8.	BANK OVERDRAFTS AND SHORT-TERM 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	11,615	7,849	11,615	7,849	
Loans from banks	-	66,996	-	66,996	
Total	11,615	74,845	11,615	74,845	
	The Company’s bank overdrafts and loans from banks are secured by the transfer of the calling right for the collections from the construction contract debtors of certain projects, the pledge of the subsidiary’s shares, and the mortgage of the Company’s land.
During the second quarter of 2003, the Company transferred its ownership in its land and construction thereon with a net book value of approximately Baht 109 million, and the land of Siam Chaisri Co., Ltd. with a net book value of approximately Baht 35 million for repayment of loan from finance company of Baht 160 million and related accrued interest (which is a part of condition required in the Company’s rehabilitation plan).  The Company reversed surplus on revaluation of assets of approximately Baht 102.5 million to the earnings statement and recorded gain from debt restructuring of totaling approximately Baht 29.8 million as an extraordinary item in the earnings statement for the three-month and six-month periods ended 30 June 2003.

(UNAUDITED BUT REVIEWED)
9.	NET ASSETS and results OF Discontinued operation UNITS
(Unit : Thousand Baht)
	Consolidated	
	30 June	31 December	
	2004	2003	
Total assets	331,408	331,325	
Total liabilities	(37)	(247)	
Net assets before provision	331,371	331,078	
Less : Provision for diminution in value of assets	(2,800)	(182,800)	
Net assets	328,571	148,278	
	The net assets of discontinued operation units mainly represented the net assets of Harmony Property Group Limited, which the Group intends to dispose of its investment.  During the three-month period ended 31 March 2004, Harmony Property Group Co., Ltd. received proceeds of approximately Baht 180 million from disposal of investment in the project.  The Group had therefore reversed the provision previously recorded in the accounts as income, which was included in “Results of discontinued operation units” in the consolidated earnings statement for the six-month period ended 30 June 2004 and was included as part of share of profit from investments under equity method in the Company’s earnings statement.
	During the year 2002, the Company recognised an adjustment in the financial statements of an overseas subsidiary since that subsidiary was notified by the bank for the repayment of interest on its loan.  Such interest was previously waived by the bank.  However, following the Court’s order for the rehabilitation of the Company’s business, the bank had lodged the claim for guarantee obligation the Company provided to this subsidiary and had retroactively charged interest on the subsidiary’s loan from the year 2000 to 2002.  Total interest calculated at the normal interest rate up to 31 December 2002 was approximately Baht 78.3 million, inclusive of interest for the years 2001 and 2000 of Baht 29.2 million and Baht 19.3 million respectively.  The cumulative effect of the adjustment up to the beginning of year 2002 was adjusted to the brought forward deficit.  Nevertheless, the Company and the subsidiary did not adjust accrued interest expenses to the default interest rate.

(UNAUDITED BUT REVIEWED)
	Later in 2003, the bank recalculated the above interest from 30 June 2002 using the default rate.  The Company adjusted the difference of interest calculated at the normal interest rate and that calculated at the default interest rate from 30 June 2002 to 31 December 2002.  The adjustment has an effect of decreasing net earnings for the year of approximately Baht 47.7 million which had been adjusted to the brought forward deficit of year 2003 under the captions of “Prior year’s adjustment” in the statement of change in shareholders’ equity for the six-month period ended 30 June 2003.
10.	estimated liabilities for GUARANTEE obligations and other payables
	During the year 2003, the Company had recorded reserve for potential loss of Baht 112 million from guarantee obligations and other payables which were claimed by the creditors under the Company’s rehabilitation plan.  The reserve was estimated at the rate of 3 percent of guarantee obligations and payables claimed, which included guarantee payables, the Group’s loans, the Group’s and the Company’s bank guarantees, the specified and non-specified value of letter of guarantees in respect of performance bonds for the construction projects of the Group and the Company, the Revenue Department creditors, and other payables.  The management believes that such reserve will cover losses and besides such obligations there will be no significant liabilities to be incurred.
11.	SHARE CAPITAL
(Unit : Thousand Baht)
	30 June	31 December	
	2004	2003	
Authorised  and registered			
   312,015,580 ordinary shares of Baht 1 each			
      (31 December 2003 : 31,201,558,000 ordinary shares of Baht 0.01 each)	312,016	312,016	
 Issued and fully paid up			
   312,015,580 ordinary shares of Baht 1 each			
      (31 December 2003 : 31,201,558,000 ordinary shares of Baht 0.01 each)	312,016	312,016	

(UNAUDITED BUT REVIEWED)
Since 2003, the Company implemented its rehabilitation plan with regards to the capital restructuring, as detailed in Note 13.
	On 14 January 2004, the meeting of the Board of Directors of CN Advisory Co., Ltd. passed a resolution for the change of the par value of the Company’s shares, according to the order of the Central Bankruptcy Court, from Baht 0.01 to Baht 1 by combining 100 ordinary shares to 1 share.
	The Company registered with the Ministry of Commerce for the change of its number and par value of ordinary shares on 16 March 2004, and had reflected the change in the number of ordinary shares as a result of the change in the par value in calculating earnings per share for the three-month and six-month periods ended 30 June 2004.   The earnings per share for the three-month and six-month periods ended 30 June 2003 was also restated.
12.	Own shares held BY THE SUBSIDIARY
Own shares held by the Subsidiary represented the cost of 1,054.08 million ordinary shares of Baht 0.01 each, totaling Baht 10.5 million, issued by the Company following its capital restructuring plan and held by the Subsidiary.  This holding has been treated in the balance sheets as a deduction in the shareholders' equity to determine the net equity attributable to the Company’s shareholders.
The result of the change of the Company’s par value from Baht 0.01 to Baht 1, as discussed in Note 11, caused own shares held by the Subsidiary changed to 10.54 million shares of Baht 1 each.

(UNAUDITED BUT REVIEWED)
13.	REHABILITATION PLAN
	On 8 July 2002, the Central Bankruptcy Court issued an order for the reorganisation petition of the Company and appointed CN Advisory Company Limited to be the planner as proposed. 
	The Company’s rehabilitation plan has significant contents as follows :-
	1.	Capital restructuring
		1)	Transfer statutory reserve, share premium and share discount to offset with the deficit.
		2)	Decrease the non-issuance of the registered capital of 18,035,800 shares, resulting in the decrease in its registered capital from Baht 1,592,193,200 (159,219,320 ordinary shares of Baht 10 each) to Baht 1,411,835,200 (141,183,520 ordinary shares of Baht 10 each).
		3)	Decrease the share capital to offset with the deficit by reducing the par value of Baht 10 each to Baht 0.01 each before the further increase in share capital.
		4)	Increase registered capital limited to Baht 500 million by issuing new ordinary shares and/or warrant and/or convertible securities to the existing share holders and/or allocated to the specified investors and/or sell to the public.
	2.	Group restructuring by concentrating on the local construction business.  The Company plans to  dispose investments or projects or liquidate the subsidiary and affiliated companies which have not operated or have operated with loss.
	3.	Creditor treatment and procedures for debt repayment to each creditor group, totaling 12 groups of creditors.

(UNAUDITED BUT REVIEWED)
	The Company had on 15 January 2003 proposed the above rehabilitation plan to its creditors in which the plan had been approved by the majority of its concerned creditors on 18 February 2003 and subsequently agreed by the Central Bankruptcy Court on 2 May 2003.  The Court has appointed CN Advisory Company Limited as a plan administrator.  During 2003, the Company has taken actions under the rehabilitation plan as follows :-
	Capital restructuring
The Company processed its capital restructuring under the rehabilitation plan regarding the decrease and increase of the Company’s registered share capital which was approved by the Plan Administrator’s Board of Directors through the meeting of the Board of Directors of CN Advisory Co., Ltd. number 3/2546 held on 23 July 2003 and was also approved by the Central Bankruptcy Court on 5 August 2003. The Company’s capital restructuring was processed as follows: -
1.	The Company decreased its 18,035,800 non-issued ordinary shares, resulting in the reduction of its registered share capital from Baht 1,592.2 million (159,219,320 ordinary shares of Baht 10 each) to Baht 1,411.8 million (141,183,520 ordinary shares of Baht 10 each).  The Company registered the capital decrease with the Ministry of Commerce on 25 August 2003.
2.	On 26 August 2003, the Company registered the decrease of its issued and paid up share capital by reducing the par value from Baht 10 each to Baht 0.01 each to offset with the Company’s deficit totaling Baht 1,410.4 million, resulting in the reduction of its registered and paid up share capital from Baht 1,411.8 million to Baht 1.4 million (141,183,520 ordinary shares of Baht 0.01 each).
3.	The Company transferred the statutory reserve of Baht 28.5 million and share premium of Baht 198.1 million to offset with the Company’s deficit.  

(UNAUDITED BUT REVIEWED)
4.	The Company issued 31,060,374,480 new ordinary shares of Baht 0.01 each by offering 31,060,374,400 ordinary shares to the existing shareholders of the Company in the portion of 1 existing ordinary share to 220 new ordinary shares and offering 80 ordinary shares through the private placement. The registered and paid up share capital had therefore increased from Baht 1.4 million (141,183,520 ordinary shares of Baht 0.01 each) to Baht 312 million (31,201,558,000 ordinary shares of Baht 0.01 each).  The Company registered the capital increase with the Ministry of Commerce on 30 September 2003.
5.	The Company had on 16 March 2004 registered with the Ministry of Commerce for the change of its number and par value of ordinary shares from 31,201,558,000 ordinary shares of Bath 0.01 each to 312,015,580 ordinary shares of Baht 1 each.
Group restructuring
The Company processed its group restructuring plan by disposing investments in certain subsidiary companies which have not operated or have operated with loss to third parties. The group restructuring plan had been approved by the Plan Administrator’s Board of Directors through the meeting of the Board of Directors of CN Advisory Co., Ltd. number 3/2546 held on 23 July 2003, which was also in compliance with the rehabilitation plan agreed by the Central Bankruptcy Court on 2 May 2003. 

(UNAUDITED BUT REVIEWED)
Debt restructuring
As part of the debt restructuring, the Company had made payments to each group of creditors following the basis specified in the rehabilitation plan and had adjusted liabilities which were deemed necessary.  The details of debt settlement, gain from debt restructuring and debt adjustments were as follows :-
 (Unit : Million Baht)
	Gain from debt restructuring	Estimated liabilities for guarantee obligations and other payables	
1.	Transfer of the Company’s land and land with construction thereon and the subsidiary’s land to settle the debts of Baht 169.1 million claimed under the plan by the 1st group creditor.	29.8	-	
2.	Payment made to one of the 3rd group creditor at 3% of total debts of Baht 60.5 million claimed under the plan.	32.3	-	
3.	Payment made to the 4th group creditor at 3% of total debts of Baht 1,718.6 million claimed under the plan.	338.5	-	
4.	Transfer of the Company’s land, together with payment, to settle the debts of Baht 75 million claimed under the plan by the 5th group creditor.	57.1	-	
5.	Payment and adjustment of amounts due to and loans from related parties at 3% of total debts of Baht 390.5 million claimed under the plan.	375.5	-	
6.	Recording of liabilities for the 8th, 9th, 11th and 12th group creditors, as deemed necessary, at 3% of the debts claimed under the plan.	-	112	
Total	833.2	112	
During the three-month and six-month periods ended 30 June 2003, the Company settled the debts with its creditor and recognized gain from debt restructuring of approximately Baht 29.8 million, which was presented as an extraordinary item in the earning statements.

(UNAUDITED BUT REVIEWED)
	In respect of the 10th group creditor, the amount claimed by the creditor was approximately Baht 3,482 million.  The Comptroller of Bankruptcy had inspected the evidence and found that the claim represented the construction contract value of the Joint Venture : NWR, ITD, CNT & AS Joint Venture that the Company has invested in the proportion of 25%.  The Joint Venture is currently operating the construction and has not yet breached the contract.  The Comptroller had ordered the creditor to receive only the advance payment of approximately Baht 340 million including interest at the rate of 7.5% per annum from the breach of the contract until completion of payment.  The Joint Venture had in 2003 paid all of such advance to the creditor.
14.	Financial information by segment 
	The Company’s, its subsidiaries’ and joint venture’s operations involve virtually a single industry segment i.e. construction business which are carried on both in Thailand and foreign countries. 
	Geographical segment information of the Company, its subsidiaries and joint venture as at 30 June 2004 and 31 December 2003 and for the three-month and six-month periods ended 30 June 2004 and 2003 was as follows : 
(Unit : Million Baht)
	Consolidated for the three-month periods ended 30 June	
		Other countries in		Total	
	Thailand	Asia	Europe	Eliminated	2004	2003	
Construction income	1,071	-	-	(31)	1,040	834	
Earnings (loss) before interest expenses, tax, results of discontinued operation units and extraordinary item					52	(355)	
Interest expenses					-	(8)	
Corporate income tax					(1)	(19)	
Results of discontinued operation units					-	(22)	
Earnings (loss) before extraordinary item					51	(404)	
Extraordinary item - gain from debt restructuring					-	30	
Net earnings (loss)					51	(374)	

(UNAUDITED BUT REVIEWED)
 (Unit : Million Baht)
	Consolidated for the six-month periods ended 30 June	
		Other countries in		Total	
	Thailand	Asia	Europe	Eliminated	2004	2003	
Construction income	2,175	-	-	(73)	2,102	1,529	
Earnings (loss) before interest expenses, tax, results of discontinued operation units and extraordinary item					69	(474)	
Interest expenses					-	(19)	
Corporate income tax					(2)	(19)	
Results of discontinued operation units					170	(42)	
Earnings (loss) before extraordinary item					237	(554)	
Extraordinary item - gain from debt restructuring					-	30	
Net earnings (loss)					237	(524)	

(Unit : Million Baht)
	Consolidated as at 30 June 2004 and 31 December 2003	
		Other countries in		Total	
	Thailand	Asia	Europe	Eliminated	30 June	31 December	
					2004	2003	
Construction contract debtors - net	516	-	-	(63)	453	532	
Construction contracts in progress	517	-	-	(23)	494	460	
Property, plant and equipment - net	122	-	-	-	122	113	
Other assets	5,149	444	-	(4,397)	1,196	957	
Total assets	6,304	444	-	(4,483)	2,265	2,062	
15.	Commitments
As at 30 June 2004, the Group and the Company had commitments other than those disclosed in other notes as follows :-
(a)	Commitments in respect of long-term lease of land on which the Group’s and Company’s construction office and warehouse are located and other long-term lease agreements. The rental payable in the future under the lease agreements is approximately Baht 7.1 million (31 December 2003 : 8.3 million).
 (b)	The Company had other commitments mainly in respect of operating leases of approximately Baht 1.2 million (31 December 2003 : Baht 2.4 million).

(UNAUDITED BUT REVIEWED)
16.	Contingent liabilities
	As at 30 June 2004, the Group and the Company had contingent liabilities other than those disclosed in other notes as follows :-
(a)	The Company had issued letters of guarantees, mainly in respect of contract payments, performance bonds and finance facilities of approximately Baht 199 million (31 December 2003 : Baht 199 million).  Furthermore, the Company had issued both specified and non-specified value of letters of guarantees in respect of performance bonds for the construction projects of the overseas subsidiary companies.  Since 2003, the Company recorded liabilities in respect of these guarantee obligations, which were estimated based on the maximum guarantees claimed by the creditors under the Company’s rehabilitation plan.
(b)	The Company had outstanding bank guarantees of approximately Baht 1,231 million (31 December 2003 : Baht 1,029 million) issued by the banks on behalf of the Company in respect of certain performance bonds as required in the normal course of business of the Company.  Furthermore, the Group had bank guarantees of approximately Baht 1,121 million (31 December 2003 : Baht 1,121 million) issued by the banks on behalf of the Group in which the Company recorded liabilities in respect of these guarantee obligations, which were estimated based on the maximum guarantees claimed by the creditors under the Company’s rehabilitation plan. 
	(c)	The Company has guaranteed to a local bank for the credit and guarantee facilities granted by that bank to an overseas associated company at the maximum facilities of DKK 103 million.  However, the Company has obtained letter of guarantee from the major shareholder of that associated company for future contingent liabilities.  Under the agreement between the bank and that associated company, no additional credit facilities are to be granted and the remaining guarantee will gradually reduce over the period of letter of guarantee.  The management of the Company believes that the said guarantee will be ended within 5 years from April 2001.  The Company had recorded liability in respect of this guarantee obligation, which was estimated based on the maximum guarantee claimed by the creditor under the Company’s rehabilitation plan.

(UNAUDITED BUT REVIEWED)
	 (d)	During the year 2002, the Company had filed for the refund of the 1999-2001 withholding tax deducted at source totaling approximately Baht 67 million with the Revenue Department.  The investigation of the tax authorities resulted the Company in the additional tax assessment for corporate income tax, withholding tax, specific business tax and stamp duty of approximately Baht 118 million and the changes in tax losses brought forward of the same periods.  The Company had on 17 October 2002 appealed the tax assessment with the officer.  The officer is currently investigating the evidence in which the result could not be determined at this stage.  Nevertheless, the management believes that there will be no significant liabilities to be incurred from the result of the investigation and general provision set aside in the accounts is sufficient.
17.	FINANCIAL INSTRUMENTS - Foreign currency risk
The Company’s and its subsidiaries’ exposure to foreign currency risk relates primarily to its assets and liabilities which are denominated in foreign currencies, and investments in foreign subsidiary companies, which are currently not hedged by any derivative financial instruments.  
As at 30 June 2004, the Company and its subsidiaries had foreign currency - denominated assets and liabilities which had not been hedged against foreign exchange rate risk, as summarized below :-
			Average exchange rate as at 	
Foreign currency 	Assets	Liabilities	30 June 2004	
	(Unit : Thousand)	(Unit : Thousand)	(Baht per unit of foreign currency)	
GBP	33	19	73.9891	
DKK	27	-	6.6602	
MYR	-	1,458	10.7724	
18.	presentation
	Certain amounts in the 2003 financial statements have been reclassified, with no effect on previously reported net loss or shareholders’ equity.
19.	APPROVAL OF FINANCIAL STATEMENTS
	These financial statements have been approved by the Company’s plan administrators.