EASTERN WIRE PUBLIC COMPANY LIMITED 
AND ITS SUBSIDIARY
REPORT AND INTERIM FINANCIAL STATEMENTS
FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED 30 JUNE 2004

Review Report of the Independent Auditor
To The Board of Directors and Shareholders of
Eastern Wire Public Company Limited
I have reviewed the accompanying consolidated balance sheet of Eastern Wire Public Company Limited and its subsidiary as at 30 June 2004, the related consolidated statements of earnings for the three-month and six-month periods ended 30 June 2004, and the related consolidated statements of changes in shareholders’ equity and cash flows for the six-month period ended 30 June 2004, and the separate financial statements of Eastern Wire Public Company Limited for the same periods. These financial statements are the responsibility of the Company’s management as to their correctness and the completeness of the presentation. My responsibility is to issue a report on these financial statements based on my review.
Except as discussed in the next paragraph, I conducted my review in accordance with the auditing standard applicable to review engagements.  This standard requires that I plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit.  I have not performed an audit and, accordingly, I do not express an audit opinion.
I was appointed as the Company and its subsidiary’s auditor in March 2004 to examine the financial statements for the year ending 31 December 2004 and therefore I was unable to observe the subsidiary’s inventory taking as at 31 December 2003. The balances of those inventories, which were carried forward to the beginning of the year 2004, had formed a part of cost of sales for the three-month and six-month periods ended 30 June 2004.
Based on my review, except for the effect of such adjustment, if any, to the earnings statements for the three-month and six-month periods ended 30 June 2004 as might have been necessary had I been able to observe the inventory taking as at 31 December 2003 as described in the previous paragraph, nothing has come to my attention that cause me to believe that the accompanying financial statements are not presented fairly, in all material respects, in accordance with generally accepted accounting principles.

Without qualifying my review report, I draw attention to the following matters :-
As mentioned in Note 6 to the interim financial statements, on 27 March 2000, the subsidiary entered into a debt restructuring agreement with its financial institution and related company creditors. During the year 2002, the subsidiary had ceased the repayments which were scheduled to be paid in compliance with the debt restructuring agreement. The total indebtedness balance as at 31 December 2003 is Baht 334 million (the outstanding balance of indebtedness since the defaulted date) and the subsidiary began negotiations with its creditors for a new round of debt restructuring.  By an extraordinary resolution of a creditors’ meeting held on 8 March 2004 the former debt restructuring agreement was terminated and the subsidiary began negotiations with the creditors regarding the revision of the terms of the debt restructuring. During the current period, the subsidiary had succeeded in the debt restructuring negotiation with 3 creditors amounting to Baht 175 million. In addition, subsequent to the balance sheet date until the date of this report (5 August 2004), the subsidiary had succeeded in the debt restructuring negotiation with another creditor amounting to Baht 125 million. Therefore, there are total restructured debts of Baht 300 million. 
The subsidiary has proposed a revised debt restructuring scheme to another of the remaining creditors with total indebtedness of Baht 34 million, but as at the date of this report (5 August 2004) negotiations have not been concluded. In addition, as mentioned in Note 1.1 to the interim financial statements, as at 30 June 2004 the Company and its subsidiary had accounts payable, short-term loans and long-term loans totaling Baht 357 million (including the long-term loan haircut amounting to Baht 97 million granted under the debt restructuring agreement made with a creditor on 23 July 2004 discussed in Note 6.1.4 to the interim financial statements). In order to be able to continue their business as going concerns, the Company and its subsidiary will have to generate sufficient earnings from their future operations, find external and internal sources of funds for their operations, negotiate the new round of debt restructuring with the remaining creditor of the subsidiary and repay the loans to their lenders in accordance with the agreements. The Company’s and the subsidiary’s management expect to complete the debt restructuring within 2004 and are confident they will receive the continuous financial support from a local company which is the new lender. However, the aforementioned matters indicate that there is still uncertainty as to whether the Company and its subsidiary will be able to generate sufficient earnings from their operations and to repay the loans to their lenders in accordance with the agreements.

The consolidated financial statements of Eastern Wire Public Company Limited and its subsidiary and the separate financial statements of Eastern Wire Public Company Limited for the year ended 31 December 2003, were audited by another auditor who, under his report dated 28 January 2004, expressed an unqualified opinion on the separate financial statements of Eastern Wire Public Company Limited, and issued a disclaimer of opinion on the consolidated financial statements of Eastern Wire Public Company Limited and its subsidiary because of limitation of scope in auditing the outstanding balance of debt under debt restructuring of the subsidiary and the uncertainties related to the subsidiary obligations to its debt restructuring creditors both of which had significant impacts on the consolidated financial statements. The balance sheets as at 31 December 2003, as presented herein for comparative purposes, formed an integral part of the financial statements which that auditor audited and reported on.
The consolidated statements of earnings for the three-month and six-month periods ended 30 June 2003 and the consolidated statements of changes in shareholders’ equity and cash flows for the six-month period ended 30 June 2003 of Eastern Wire Public Company Limited and its subsidiary and the separate financial statements of Eastern Wire Public Company Limited for the same periods, as presented herein for comparative purposes, were reviewed by the aforementioned auditor who reported, under his report dated 31 July 2003, that nothing had come to his attention that caused him to believe that those financial statements were not presented fairly, in all material respects, in accordance with generally accepted accounting principles.

		Supachai Phanyawattano
		Certified Public Accountant (Thailand) No. 3930
Ernst & Young Office Limited
Bangkok  :  5 August 2004