VIEWED QUARTER-2 1997/1998 (REVISED)

SINGER THAILAND PUBLIC COMPANY LIMITED STATEMENTS OF CASH FLOWS (UNAUDITED) (Cont'd) FOR THE THREE MONTHS ENDED 31 DECEMBER Consolidated Company 1997 1996 1997 1996 Baht Baht Baht Baht CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of long-term loans (60,000,000) (164,000,000) (60,000,000) (164,000,000) Proceeds from long-term loans 100,000,000 762,600,000 100,000,000 762,600,000 Increase (decrease) in employees security deposits and (828,994) 39,828,079 (831,130) 38,919,136 provident funds Dividends paid (151,272,084) (259,650,046) (151,272,084) (259,650,046) Net cash inflow (outflow) from financing activities (112,101,078) 378,778,033 (112,103,214) 377,869,090 Increase in cash and cash equivalents 87,456,143 132,193,827 87,558,154 132,263,206 Cash and cash equivalents at beginning of the period 56,410,947 77,109,755 54,735,350 75,354,427 Cash and cash equivalents at end of the period 143,867,090 209,303,582 142,293,504 207,617,633 ADDITIONAL CASH FLOWS INFORMATION Interest paid during the period 129,370,883 113,533,172 127,074,315 111,304,765 Income tax paid during the period 96,814,424 160,988,641 94,218,126 157,053,457 SINGER THAILAND PUBLIC COMPANY LIMITED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE SIX MONTHS ENDED 31 DECEMBER Consolidated Company 1997 1996 1997 1996 Baht Baht Baht Baht CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) for the period (316,838,574) 249,165,177 (301,597,373) 241,505,090 Adjusted by: Depreciation 22,252,222 21,270,473 20,788,266 19,843,637 Amortisation of prepaid rent 14,044,363 12,925,124 14,044,363 12,925,124 Allowance for doubtful accounts 27,830,000 6,644,000 27,830,000 6,644,000 Allowance for inventory obsolescence 5,039,242 (2,209,662) 9,000,000 1,700,000 Gain on disposal of fixed assets (680,595) - (680,595) - Unrealised loss on exchange rate 94,942,441 - 94,942,441 - Decrease in inventories 299,807,630 172,772,154 310,914,060 172,768,464 Decrease (increase) in debtors and other current assets 760,717,020 (68,368,923) 678,887,337 (70,852,246) (Decrease) in creditors and other current liabilities (346,319,267) (358,759,626) (323,406,108) (402,282,974) (Decrease) in bank overdrafts and short-term loans (30,662,299) (265,206,163) (339,299) (213,988,975) (Decrease) in accrued income tax (95,229,261) (47,834,321) (94,263,432) (48,123,174) Net cash inflow (outflow) from operating activities 434,902,922 (279,601,767) 436,119,660 (279,861,054) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sales of fixed assets 804,682 - 804,682 - Purchases of fixed assets (21,003,699) (47,361,075) (20,749,008) (47,195,852) (Increase) in prepaid rent (9,401,708) (17,077,040) (9,401,708) (17,077,040) (Increase) in receivable from and loans to employees (317,787) (1,057,462) (435,433) (94,400) Investment in subsidiary - - (1,248,000) - Net cash (outflow) from investing activities (29,918,512) (65,495,577) (31,029,467) (64,367,292) SINGER THAILAND PUBLIC COMPANY LIMITED STATEMENTS OF CASH FLOWS (UNAUDITED) (Cont'd) FOR THE SIX MONTHS ENDED 31 DECEMBER Consolidated Company 1997 1996 1997 1996 Baht Baht Baht Baht CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of long-term loans (320,000,000) (164,000,000) (320,000,000) (164,000,000) Proceeds from long-term loans 180,225,000 862,600,000 180,225,000 862,600,000 Decrease (increase) in employees security deposits and provident funds (13,714,959) 42,766,582 (13,720,757) 41,935,201 Dividends paid (151,272,084) (267,460,066) (151,272,084) (267,460,066) Net cash inflow (outflow) from financing activities (304,762,043) 473,906,516 (304,767,841) 473,075,135 Increase in cash and cash equivalents 100,222,367 128,809,172 100,322,352 128,846,789 Cash and cash equivalents at beginning of the period 43,644,723 80,494,410 41,971,152 78,770,844 Cash and cash equivalents at end of the period 143,867,090 209,303,582 142,293,504 207,617,633 ADDITIONAL CASH FLOWS INFORMATION Interest paid during the period 227,555,159 214,689,209 222,346,481 209,197,049 Income tax paid during the period 97,000,663 161,035,362 94,403,878 157,099,882 SINGER THAILAND PUBLIC COMPANY LIMITED NOTES TO INTERIM CONSOLIDATED AND COMPANY FINANCIAL STATEMENTS (UNAUDITED) 31 DECEMBER 1997 AND 1996 1 Summary of significant accounting policies 1.1 Basis for preparation of financial statements The consolidated and company financial statements have been prepared in conformity with generally accepted accounting principles in Thailand and regulations of the Stock Exchange of Thailand. The company had previously presented financial statements for the three months and six months period ended 31 December 1996 which did not include the consolidated and company statements of changes in shareholders' equity because the presentation of such statements was not required by the Stock Exchange of Thailand. However as such statements are now required to be presented, the company has therefore presented such statements for the three months and six months ended 31 December 1996 for comparison with the financial statements for the three months and six months period ended 31 December 1997. 1.2 Principles of consolidation The consolidated financial statements incorporate the financial statements of Singer Thailand Public Company Limited and its subsidiaries.Intercompany transactions are eliminated in the consolidation. Subsidiaries are those companies in which the company holds, directly or indirectly, more than 50% of the voting shares and dominant influence is exercised in the their management. Subsidiaries included in the consolidated financial statements are 1997 1996 % of shareholding % of shareholding Singer Industries (Thailand) Limited 99.88 99.88 Singer (Broker) Limited 99.70 99.70 Singer Trading (Thailand) Limited 99.86 99.86 Sansui (Thailand) Limited 50.86 50.86 S. T. L. E. Electronics Limited 99.84 - 1.3 Revenue recognition Sales comprise cash sales, credit sales and installment sales. Cash sales and credit sales are recognised when products are delivered. Installment sales represent sales under hire-purchase contracts whereby the related debts are effectively secured by the products sold. Revenue from installment sales comprises sales of product and interest. Sales of product and gross profit are recognised when contracts are signed and first payments are received. Interest is recorded in unearned carrying charges and recognised as earned by using the sum-of-the-months'digits method. Collection commissions are accrued upon collection. 1.4 Trade accounts receivable In accordance with trade practice, installment accounts receivable are classified as current asset regardless of when payments are due. This receivable is effectively secured by the products sold. The interest on installment sales are calculated on customary financing terms. The company makes an allowance for doubtful accounts to cover the estimated losses that may be incurred in the collection of the debts, and makes a provision for losses and expenses relating to future estimated sale cancellation and discounts . 1.5 Inventories Inventories are stated at the lower of cost and net realisable value, cost being determined generally on the first-in first-out basis. 1.6 Investments Investments in subsidiaries are stated at cost. The equity method of accounting has not been adopted as its use does not have a significant effect on the company's results. Other investments are stated at cost less provision for permanent diminution in value. (More)