Financial Statement

Siam Investment Fund
29 December 2003


SIAM INVESTMENT FUND

STATEMENTS OF OPERATIONS

FOR THE 6-MONTH PERIOD ENDED 30 SEPTEMBER 2003 AND 2002

                                              US$
                           Notes        2003      2002
Income
Interest income                        9,636    12,981
Dividend income                       88,145   399,369
Gain on foreign exchange             667,034         -
Net unrealized gain on 
 valuation of investments          7,129,074         -
Net unrealized gain on 
 foreign exchange relating
 to carrying value of
 investments                       1,300,639   535,737
Net realized gain on 
 sale of investments               6,414,651 3,194,384
Other income                               -         -

Total income                      15,609,179 4,142,471


Expenses

Advisory fees               8.1      250,000   249,996
Administrative expenses       9      116,996    99,747
Net unrealized loss on 
 valuation of investments                  - 7,263,106
Net realized loss on foreign 
 exchange relating to
 carrying value of investments             -   262,893

Total expenses                       366,996 7,875,742

Net income (loss) for 
 the periods                      15,242,183(3,733,271)

Earning (loss) per share                6.10     (1.49)

The accounting policies and the notes on pages 5 to 17 form an integral part of 
these financial statements.


SIAM INVESTMENT FUND

BALANCE SHEETS

AS AT 30 SEPTEMBER  2003 AND 2002


                                                US$
                           Notes        2003         2002

Investments                  4    17,266,029   19,852,711

Current assets
Cash and cash equivalents         15,031,903    1,550,305
Receivable from sales 
 of investments                        1,009            -
Other current assets                  11,301        7,587

Total current assets              15,044,213    1,557,892

Current liabilities

Dividend payable            13    (2,500,000)           -
Accrued expenses                     (31,547)     (34,596)
Total current liabilities         (2,531,547)     (34,596)
Net current assets                12,512,666    1,523,296

Net assets                        29,778,695   21,376,007

Net assets financed by:
Share capital               5         12,500       12,500
Share premium               6     17,487,500   24,987,500
Capital reserve                   11,858,224   (4,276,778)
Revenue reserve                      420,471      652,785
Total shareholders' funds         29,778,695   21,376,007
Net asset value per share   7          11.91         8.55

For and on behalf of Siam Investment Fund:

............................................................ Director

The accounting policies and the notes on pages 5 to 17 form an integral part of these financial statements.


SIAM INVESTMENT FUND

STATEMENTS OF CHANGES IN NET ASSETS

FOR THE 6-MONTH PERIOD ENDED 30 SEPTEMBER 2003 AND 2002


                                       Share        Share    Capital    Revenue
                                     capital      premium    reserve    reserve       Total



Balance at 1 April 2002               12,500   24,987,500   (480,900)   590,178  25,109,278
Net loss for the period                    -            -          - (3,733,271) (3,733,271)

Appropriated for:
   Net unrealized loss on valuation
    of investments                         -            - (7,263,106) 7,263,106           -
   Net realized loss on foreign exchange   -            -   (262,893)   262,893           -
   Net unrealized gain on foreign
    exchange relating to carrying
    value of investments                   -            -    535,737   (535,737)          -
   Net realized gain on sale of
    Investments                            -            -  3,194,384 (3,194,384)          -
Dividend for the period                    -            -          -          -           -
Balance at 30 September 2002          12,500   24,987,500 (4,276,778)   652,785  21,376,007
Balance at 1 April 2003               12,500   22,487,500 (3,653,174)   689,686  19,536,512
Net gain for the period                    -            -          - 15,242,183  15,242,183

Appropriated for:
   Net unrealized gain on valuation
     of investments                        -            -  7,129,074 (7,129,074)          -
   Net realized gain on foreign exchange   -            -    667,034   (667,034)          -
   Net unrealized gain on foreign
     exchange relating to carrying
     value of investments                  -            -  1,300,639 (1,300,639)          -
   Net realized gain on sale of 
    investments                            -            -  6,414,651 (6,414,651)          -
Dividend for the period                    -   (5,000,000)         -          -  (5,000,000)

Balance at 30 September 2003          12,500   17,487,500 11,858,224    420,471  29,778,695

The accounting policies and the notes on pages 5 to 17 form an integral part of 
these financial statements.


SIAM INVESTMENT FUND

STATEMENTS OF CASH FLOWS

FOR THE 6-MONTH ENDED 30 SEPTEMBER 2003 AND 2002

                                                                   US$
                                                       2003                   2002
Cash flows from operating activities:
Net income (loss) for the period                 15,242,183             (3,733,271)
Unrealized (gain) loss on valuation of
 investments                                     (7,129,074)             7,263,106
Unrealized gain on foreign exchange relating to
   carrying value of investments                 (1,300,639)              (535,737)


Cash provided from operating activities before
changes in operating assets and liabilities       6,812,470              2,994,098
Changes in operating assets and liabilities:
Accounts receivable                               2,207,482                545,788
Dividend receivable                                 354,501                      -
Other current assets                                  4,031                  5,413
Investment                                        9,731,352              1,458,299
Dividend payable                                          -             (3,750,000)
Accrued expenses                                     12,356                 25,466
  Total cash provided from
    operating activities                         19,122,192              1,279,064

Cash flow from financing activity:
Dividend                                         (5,000,000)                     -

Total cash used in operating activities          (5,000,000)                     -

Increase in cash and cash equivalents
 for period                                      14,122,192              1,279,064

Cash and cash equivalents at beginning 
 of the period                                      909,711                271,241
Cash and cash equivalents at end of the period   15,031,903              1,550,305

The accounting policies and the notes on pages 5 to 17 form an integral part of 
these financial statements.


SIAM INVESTMENT FUND

NOTES TO THE FINANCIAL STATEMENTS

AS AT 30 SEPTEMBER 2003 AND 2002

1  Business activities

Siam Investment Fund ('the Fund') is a closed-end investment fund and was incorporated as an
exempted company with limited liability in the Cayman Islands on 22 February 1996. The Fund obtained
a listing for its shares on the London Stock Exchange on 25 April 1996. The Fund's investment objective
is to achieve long-term capital appreciation through investments primarily in unlisted companies, joint
ventures and projects.  Previously, such investments were in the Southeast Asian region; however,
following a change in mandate, approved at a shareholders meeting held on 6 March 1998, the Fund
may now invest up to 100% of its capital in listed and unlisted companies in Thailand.


2  Duration

The Fund may be dissolved on 31 March 2006.  However, with the approval from the holders of at least
two-thirds of the shares of the Fund, approved at or prior to the annual general meeting in 2006, the term
of the Fund may be extended for an additional two years to 31 March 2008.


3  Significant accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with and are generally consistent with
the International Accounting Standards. These require the Fund's Directors to make estimates and
assumptions that effect the reported amounts and disclosure in the financial statements. Actual
results could differ from these estimates. The financial statements are prepared under the
historical cost convention as modified by the revaluation of certain marketable securities and
investment properties.

b) Cash equivalents

The Fund considers all highly liquid investments with a maturity of three months or less when
purchased to be cash equivalents.

c) Investments

All securities for which market quotations are readily available are valued at the closing market
price. Securities for which market quotations are not readily available are valued by the Directors
at cost to the Fund or at a valuation based on third-party transactions in the same or in similar
investments or at fair market value taking into consideration the cost of the investments, the
quoted prices of investments of comparable publicly traded companies, market conditions, the
underlying collateral, financial data and projections of the issuer of any relevant securities, and
such other factors as the Directors may deem relevant.

Investment transactions are accounted for on the trade date.  Realized gains and losses from
securities transactions are reported on an identified cost basis.  Dividend and interest income is
accounted for on an accrual basis.  Discounts on securities purchased are amortised over the life
of the respective securities.

Realized and unrealized gains and losses on investments, including those relating to foreign
exchange translation of the original cost of investment into US Dollars at the balance sheet date,
are appropriated as capital reserve.

d) Foreign currency transactions

Transactions denominated in foreign currencies are translated into United States dollars at the
rates of exchange ruling on the transaction dates.  All assets and liabilities expressed in foreign
currencies at the balance sheet date are translated into United States dollars at the rate of
exchange ruling at that date.

Realized and unrealized gains and losses on translation of foreign currencies relating to the
carrying value of investments are charged directly to income statements before being appropriated
as the capital reserves. All other realized and unrealized gains and losses on translation of foreign
currencies are included in the income and expenditure account.

e) Interest income

Interest income is recognised under the accrual basis.  For the period ended 30 September 2003,
interest income arising from cash and cash equivalents was US$ 9,636 (2002: US$ 12,981) and
no interest income arising from investments.


4  Investments

                                                                 US$
                                                        2003             2002
Listed securities, at market value                17,266,029       17,907,624
Unlisted securities, at Directors valuation                -        1,945,087
Investments - net                                 17,266,029       19,852,711
Cost of investments                               14,107,604       25,578,993

The Fund has taken conservative approach to set up provision for non- recovery of its investments in
equity investment and debt investments up to 100% and 100%, respectively, in the period ended
September 30, 2003. The provisions for such investments were 42% and 75%, respectively, in the
period ended September 30, 2002. The Fund directors believe that the provision for equity investment is
adequate to cover the possible loss as the Fund intends to hold such investment for long-term purpose.

The cost of investments shown above and in 4.1 and 4.2 below reflect the cost at the date of acquisition
and do not include any subsequent foreign exchange adjustments.



An analysis of the Company's investments is as follows:

                                              2003                             2002
                                                       Market                                Market      % of net assets
                         Industry     % holding  Cost   value   % holding         Cost       value           of the Fund
                                                  US$     US$                      US$         US$   2003           2002
4.1  Listed investments
     Nation Multimedia
     Group Public
     Co , Ltd.         Publishing             -     -       -        5.59%   2,743,165   2,466,956      -          11.54

     SE - Education
     Public Co., Ltd.  Publishing             -     -       -        6.14%     799,105   1,677,663      -           7.85

     TISCO Finance
     Public Co., Ltd.     Finance             -     -       -        0.27%     484,363     359,425      -           1.68

     Thai Military Bank
     Public Co., Ltd.     Banking             -     -       -        0.20%   1,267,692     419,306      -           1.96

     Bangkok Bank
     Public Co., Ltd.     Banking             -     -       -        0.08%   1,559,377   1,222,919      -           5.72

     Telecom Asia Corp
     Public Co., Ltd.  Communication          -     -       -        0.07%     815,493     204,550      -           0.96

     Advanced Info Services
     Public Co., Ltd.  Communication          -     -       -        0.03%   1,058,184     739,884      -           3.46

     Shinawatra Satellite
     Public Co., Ltd.  Communication          -     -       -        0.22%     543,381     394,728      -           1.85

     Delta Electronics 
     (Thailand)        
     Electrical Public 
     Co., Ltd.          Components            -     -       -        0.08%     604,346     566,601      -           2.65

                                              2003                             2002
                                                           Market                          Market       % of net assets
                         Industry     % holding    Cost     value   % holding      Cost     value           of the Fund
                                                    US$       US$                   US$       US$    2003          2002

4.1  Listed investments (continued)

     Hana 
     Microelectronics   Electrical
     Public Co., Ltd.   Components        0.19%  708,531    700,425    0.19%    553,273    441,399  2.35           2.06 

     KCE Electronics    Electrical
     Public Co., Ltd.   Components        1.56%  703,572    896,091    1.50%    625,587    527,168  3.01           2.47

     PTT Public 
     Co., Ltd.             Energy             -        -          -    0.04%    890,362    947,977     -           4.43

     Siam Makro
     Public Co., Ltd.    Commerce         0.49% 1,058,836 1,004,416    0.28%    658,451    733,309  3.37           3.43

     BEC World
     Public Co., Ltd.  Entertainment          -         -         -    0.06%    717,848    588,208     -           2.75

     Sansiri
     Public Co., Ltd.    Property             -         -         -    5.18%  1,607,415  1,515,376     -           7.09

     Golden Land 
     Property 
     Development
     Public Co., Ltd.    Property         0.16%   331,928   339,151    0.17%    332,260    200,000  1.14           0.94

     Thai Airways 
     International
     Public Co., Ltd.  Transportation        -          -         -    0.02%    225,729    138,714     -           0.65

     Regional Container 
     Lines Public 
     Co., Ltd.         Transportation        -          -         -    0.40%    271,102    283,935     -           1.33

     Pranda Jewelry
     Public Co., Ltd.     Jewelry         2.73%   849,009 1,093,694    1.91%    477,330    407,278  3.67           1.91



                                              2003                             2002
                                                           Market                          Market       % of net assets
                         Industry     % holding    Cost     value   % holding      Cost     value           of the Fund
                                                    US$       US$                   US$       US$    2003          2002

4.1  Listed investments (continued)

     Thai Reinsurance
     Public Co., Ltd.    Insurance           -        -         -        0.47%  362,648   369,884       -          1.73

     SE-Education-Warrants
     Public Co., Ltd.   Publishing           -        -         -            -  385,210 1,449,809       -          6.79

     Thai Union Frozen 
     Products                 Food
     Public Co., Ltd.  & Beverages           -        -         -        0.17%  336,680   582,052       -          2.72

     Surapon Foods            Food
     Public Co., Ltd.  & Beverages           -        -         -        0.81%  150,013   104,805       -          0.49

     Natural Park
     Public Co., Ltd      Property       1.74% 2,500,598 12,581,128          -        -         -   42.25             -

     Charoen Pokphand Foods
     Public Co., Ltd   Agribusiness      0.05%   357,038    368,448          -        -         -    1.24             -

     Siam Syntech Construction
     Public Co., Ltd      Property       0.28%   266,312    232,152          -        -         -    0.78             -

     Charn Issara Development
     Public Co., Ltd      Property       0.09%    46,250     50,524          -        -         -    0.17             -

     Miscellaneous investment  nil           -         -          -          -   73,827   288,094       -          1.46



                                              2003                             2002
                                                           Market                          Market        % of net assets
                           Industry    % holding    Cost     value   % holding      Cost     value           of the Fund
                                                     US$       US$                   US$       US$    2003          2002

4.1  Listed investments (continued)

     Asia Pacific Resources  Potash
     Ltd. (d)            Fertilizer        5.19% 2,822,961       -      43.38% 3,573,583  1,277,584      -          5.98

     Total-listed investments                    9,645,035 17,266,029         21,116,424 17,907,624  57.98         83.79




4.2  Unlisted investments

4.2.1 Equity investments

                                                     2003                             2002
                                                         Directors'                        Directors'    % of net assets
                           Industry   % holding    Cost   valuation  % holding     Cost     valuation        of the Fund
                                                    US$         US$                 US$           US$   2003        2002
Northbridge           International 
Communities Ltd. (a)         School       6.25%  2,462,569      -        6.25%   2,462,569   1,445,087     -        6.76

Total-unlisted 
equity investment                                2,462,569      -                2,462,569   1,445,087     -        6.76



4.2.2 Debt investments

                                                     2003                             2002
                                                         Directors'                        Directors'    % of net assets
                           Industry   % holding    Cost   valuation  % holding     Cost     valuation        of the Fund
                                                    US$         US$                 US$           US$   2003        2002
Convertible term loan to
Monterey Pizza Co., 
Ltd. (b)                      Foods          -  2,000,000       -           -    2,000,000     500,000     -        2.33

Convertible term debenture 
to Asia Pacific Resources    Potash 
Ltd. (c)                 Fertilizer          -          -       -           -            -           -     -           -

Total-unlisted debt 
investments                                     2,000,000       -                2,000,000     500,000     -        2.33

Total-unlisted investments                      4,462,569       -                4,462,569   1,945,087     -        9.09

Investments - net                              14,107,604  17,266,029           25,578,993  19,852,711  57.98      92.88



(a) Northbridge Communities Ltd.

Northbridge Communities Ltd. ('NCL') operates international schools and related property
developments.

Thailand-The International School Eastern Seaboard (ISE) enrolls approximately 265 students in
grades pre-school through 12. The school is running a cash surplus that is being applied to
repay loans. The 13 single-family homes owned by NCL are fully leased to families from the
corporate community including General Motors Thailand and Bayer Thailand.

Cambodia-The Northbridge International School Cambodia (NISC) continues to grow in student
enrollment. The school now has more than 250 students in grades pre-school to 12. The school
is running a cash surplus that is being applied to repay the loan from the parent, NCL. The first
phase of the apartment development (16 units in 2 buildings) is fully leased. The first phase of
the single-family homes (14 houses) are leased or sold. Two banks in Cambodia have offered
financing for the second set of apartments. NCL is negotiating the final rate before signing the
loan. The second phase of the single-family homes will be built according to demand. There is
also consideration for a second school building in the next two years.

Vietnam-The North Thang Long Joint Venture Company has received permission to re-start the
project. Northbridge Hanoi has opened its office and is currently revising the Master Plan. This
company, in which NCL holds a 60% shareholding, has been given an investment license to
develop 86 Hectares just north of the Thang Long Bridge to the International Airport.

(b) Monterey Pizza Co., Ltd.

The convertible term loan to Monterey Pizza Co., Ltd. ('Monterey') is denominated in US$ and
carries interest at six month US$ LIBOR, payable every six months.  The loan is secured by
the major shareholders of Monterey and was repayable in full prior to 20 December 1998.  As
part of the loan agreement, the Fund has the right to convert a portion of the term loan into
Monterey Shares equivalent to 250,000 Monterey shares (with par value of Baht 100 per share)
which have been placed in escrow.

Monterey has experienced financial difficulties since 1997.  Interest has not
been paid when due.

The Fund has stopped accruing interest since December 1997. A legal demand for
payment of principal and accrued interest has been made to Monterey as well as to 2 directors
who have guaranteed the loan. The court ruled in favor of the Fund's demand for Baht 108
million.  The defendants have been asked by the court to settle with the Fund. The loan has
already been written down to zero.

(c)  Asia Pacific Resources Ltd.

The original investment in Asia Pacific Resources Ltd. ('APQ') was through a convertible
debenture denominated in US$ and secured by Pacific Corporate Trust Company, as Trustee.
The debenture was originally due to mature on 13 August 2000 but this was subsequently
extended by one year. The debenture carried interest at 10%. As part of the debenture
agreement, the Fund had the right to convert the term debenture into APQ shares at US$ 2.32
per share.

In December 2001, the maturity of the debenture was further extended to 28 February 2002. In
February 2002, the Company announced a significant refinancing exercise which included both
a rights issue and the conversion of the convertible debentures at a revised conversion price of
C$ 0.20 per share. Under the financing terms, Crew Development Corporation, the principal
shareholder in APQ and Olympus Capital Holdings Asia I, L.P., the principal holder of the
convertible debenture, undertook to provide interim financing and a minimum funding injection of
up to a combined C$ 10 million in the event that the subscriptions amounted to less than C$ 20
million.

In the event, the Fund received a total of 25,590,466 shares in APQ as a result of the
conversion. These shares were delivered on 17 April 2002.

APQ shares are listed on the Toronto Stock Exchange.  The market value of APQ common
share as at 30 September 2003 was US$ 0.0480 (2002: US$ 0.0504) per share.

Credit risk

The Fund has significant investments in Thailand which may involve greater risk than
investments in more developed markets.  The prices of such investments may be volatile.  The
yields of emerging market debt obligations reflect, amongst other matters, perceived credit risk.
The consequences of political, social or economic changes in Thailand may have disruptive
effects on the market prices of the Fund's investments and the income they generate.

Currency risk

All of the Fund's equity investments where the investee company is incorporated in Thailand are
subject to currency risk as the investee shares are denominated in Thai Baht.  The Fund's debt
investments are denominated in US$ and is thus not exposed to currency risk.

Fair values

Listed and unlisted investments are stated at market values and Directors' valuations
respectively.  At 30 September 2003, in the opinion of the Directors, the carrying values of the
listed and unlisted investments approximate their fair values.

Additional information related to all investments of the Group which account for more than 5% of
net assets as at 30 September 2003 is as follows:

                                                             EPS per     Market value/
                                            Cost of   latest audited        Directors'
                             % of issued investment         accounts         valuation
Investment       Industry  share capital        US$              US$               US$
Equity investments

N-Park           Property          1.74%  2,500,598          0.00374        12,581,128

Shares in N-Park were acquired through a private placement and are subject to a lock-up period
which expires in January 2004.

The Group received dividends from the above investments during the period totaling US$88,145
(2002: US$ 399,369).


5 Share capital

                                                                 US$
                                                        2003            2002
Authorised:

10,000,000 ordinary shares of US$ 0.005 each          50,000          50,000


Issued and fully paid

2,500,000 ordinary shares of US$ 0.005 each           12,500          12,500


6 Share premium

                                                                 US$
                                                        2003            2002

Arising on the issue of 2,500,000 ordinary shares at
 a premium of US$ 10.295 per share, fully paid    25,737,500      25,737,500

Less:  Placement fee                                (750,000)       (750,000)
       Dividend payment                           (7,500,000)              -

                                                 17, 487,500      24,987,500


7 Net asset value per share
 
The calculation of the net asset value per share is based on the net assets of US$29,778,695
(2002:US$21,376,007)   divided by the number of shares, being 2,500,000.


8 Related party transactions

8.1 Advisory fees

Finansa Fund Management Ltd, a related company incorporated in the Cayman Islands, serves as the
investment adviser to the Fund and receives the following.: (i) a monthly advisory fee in an amount equal
to 2% per annum of the contributed capital (defined as the aggregate paid-up share capital of the Fund,
inclusive of share premium) of the Fund; and (ii) a performance fee of 20% of the amounts by which
distributions to shareholders exceed a cumulative compound rate of return on the Fund's contributed
capital of 12% per annum.

Advisory fees totaling US$ 250,000 (2002: US$ 249,996) were charged for the period.


8.2 Directors' fees and reimbursements
 
The Fund's Articles of Association provide that the Fund may pay up to an aggregate of US$
100,000 per year to its Directors.  For the period ended 30 September 2003, an amount of
US$30,000 (2002: US$ 30,000) was approved for payment to the Directors. In addition, the Fund
reimburses Directors for travel and out-of-pocket expenses incurred in connection with Board of
Directors meetings and meetings of committees of the Board of Directors.


9 Custodial and administrative fees
 
Under a custodial agreement with Citibank, N.A. (Hong Kong Branch) ('Citibank')., Citibank acts as
custodian for the Fund, and is entitled to receive a fee from the Fund, computed and paid monthly in
arrears, comprising the following: (i) a fee calculated at a 3.5 - 7.0 basis points per annum of the
value of the portion held by the custodian; and (ii) a transaction fee of US$ 35 - US$ 90 per transaction.

Under an administrative agreement with Bank of Butterfield International (Cayman) Ltd.
('Butterfield')., Butterfield acts as administrator of the Fund, and is entitled to receive a fee from the
Fund calculated and payable quarterly in arrears at a rate of US$ 100 per hour on a time spent
basis, subject to a minimum of US$ 7,500 per year.

Custodial and administrative fees totaling US$ 9,993 and US$ 5,625 respectively (2002: US$ 4,933
and US$ 3,750) were charged for the period.


10 Directors

The non-executive directors during the period ended 30 September 2003 were as follows:

Eugene S. Davis                          (Resigned on 1 October 2003)

M.L. Plaichumpol Kitiyakara
Van Huong Nguyen
David Roberts
Enghug Nontikarn
Mungkorn Kriengwatana
Martin Michael Adams                     (Resigned on 30 June 2003)


11 Interest in shares

Shareholders who held an interest of 3% or more in the Fund as of 30
September 2003 were as follows:

Shareholder                          Number of shares               Percentage

Citivic Nominees Limited                    2,500,000                     100%
(formerly MGTB Nominees Limited)


12 Taxation

The Fund is exempt from Cayman Islands income tax and accordingly its only liability is the
payment of an annual registration fee to the government of the Cayman Islands, amounting to US$
500 per annum.

It is possible that the Fund could be assessed for income tax in other jurisdictions.  No
assessments have been raised and the Directors consider the likelihood of a significant tax liability
arising to be remote.


13 Dividend

A resolution was passed by the Board of Directors Meeting held on 31 March, 30 June and 30
September 2003, respectively approving the dividend of US$1 per share.  The Fund received approval
from shareholders to pay this dividend in April, July and October 2003, respectively.


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