CONSOLIDATED FINANCIAL STATEMENTS QUARTER 2

INDEPENDENT AUDITOR'S REPORT ON REVIEW OF THE INTERIM FINANCIAL STATEMENTS To the Shareholders of Singer Thailand Public Company Limited I have performed a review of the accompanying consolidated and company balance sheets as at 30 June 1999 and 1998 and the related consolidated and company statements of income, of changes in shareholders' equity, of retained earnings and of cash flows for the three-month and six-month periods then ended of Singer Thailand Public Company Limited and its subsidiaries, and of Singer Thailand Public Company Limited. These interim financial statements are the responsibility of the company's management. My responsibility is to issue a report on these interim financial statements based on my review. I conducted my review in accordance with standards established by the Institute of Certified Accountants and Auditors of Thailand. A review of interim financial statements consists principally of obtaining an understanding of the system for the preparation of the financial statements, making an analytical review of pertinent financial data, and making inquiries of officials of the company who have responsibility for financial and accounting matters. This review is substantially less in scope than an examination in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, I express no opinion on the financial statements which I have reviewed. Based on my review, I am not aware of any material modifications that should be made to the aforementioned interim consolidated and company financial statements for them to be in conformity with generally accepted accounting principles. I draw attention to the note 1 to the interim consolidated and company financial statements regarding economic crisis and effects on the company's operations. The company's operations have been affected, and are expected to continue to be affected for the foreseeable future, by the current economic crisis. The ultimate outcome of this crisis cannot be determined at present. SUCHART LUENGSURASWAT Certified Public Accountant (Thailand) No. 2807 PricewaterhouseCoopers ABAS Limited Bangkok 23 July 1999 The accompanying financial statements are not intended to present the financial position, results of operations, and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Thailand. SINGER THAILAND PUBLIC COMPANY LIMITED BALANCE SHEETS AS AT 30 JUNE (UNAUDITED) ASSETS Consolidated Company 1999 1998 1999 1998 Notes Baht Baht Baht Baht CURRENT ASSETS Cash in hand, at banks and in transit 185,261,281 56,814,490 183,042,048 53,873,172 Short-term investments 4 50,000,000 58,000,000 50,000,000 58,000,000 Trade and installment accounts receivable (net) 3 2,961,744,041 4,011,467,778 2,949,094,977 3,999,449,634 Inventories 861,277,810 1,107,324,579 819,576,719 1,050,397,600 Amounts due from subsidiaries 5 - - 2,376,826 2,506,323 Loans to subsidiaries 6 - - 103,500,000 111,347,000 Other current assets 35,280,049 62,279,729 28,714,497 55,006,014 TOTAL CURRENT ASSETS 4,093,563,181 5,295,886,576 4,136,305,067 5,330,579,743 RECEIVABLE FROM AND LOANS TO EMPLOYEES 2,576,008 5,874,201 1,268,795 4,541,983 LONG-TERM INVESTMENTS 7 1,939,914 2,109,914 132,264,631 139,584,553 PROPERTY, PLANT AND EQUIPMENT (net) 716,428,110 728,000,624 562,856,983 571,776,644 PREPAID RENT 84,533,460 100,671,218 84,533,460 100,671,218 TOTAL ASSETS 4,899,040,673 6,132,542,533 4,917,228,936 6,147,154,141 SINGER THAILAND PUBLIC COMPANY LIMITED BALANCE SHEETS AS AT 30 JUNE (UNAUDITED) LIABILITIES AND SHAREHOLDERS' EQUITY Consolidated Company 1999 1998 1999 1998 Notes Baht Baht Baht Baht CURRENT LIABILITIES Bank overdrafts and short-term loans 195,576,583 707,646,583 190,974,929 698,947,114 Current portion of long-term loans 143,033,334 40,000,000 143,033,334 40,000,000 Unsecured debentures due within one year 500,000,000 - 500,000,000 - Trade accounts payable - other companies 200,696,572 284,411,561 189,760,521 271,722,391 - related companies 8 5,907,637 7,783,156 5,907,637 7,783,156 - subsidiaries 9 - - 36,474,419 41,922,286 Amounts due to related company 10 2,869,232 60,126,854 2,082,582 59,680,399 Dividends payable 12 10,730,076 35,445,645 10,730,076 35,445,645 Accrued income tax 1,415,363 2,605,719 - - Accrued liabilities 187,045,197 433,348,350 184,930,501 431,600,085 Other current liabilities 11 40,166,443 44,184,860 39,677,109 43,825,612 TOTAL CURRENT LIABILITIES 1,287,440,437 1,615,552,728 1,303,571,108 1,630,926,688 LIABILITIES ARISING FROM INVESTMENTS IN SUBSIDIARIES 7 - - 5,243,218 759,920 UNSECURED DEBENTURES - 500,000,000 - 500,000,000 LONG-TERM LOANS 16 1,237,460,031 1,589,748,500 1,237,460,031 1,589,748,500 PROVISION FOR RETIREMENT COST 47,982,184 51,814,216 46,500,000 50,400,000 EMPLOYEES SECURITY DEPOSITS 146,406,731 176,316,249 145,861,375 176,243,435 PROVIDENT FUNDS 180,364,795 200,313,189 179,206,709 200,277,947 TOTAL LIABILITIES 2,899,654,178 4,133,744,882 2,917,842,441 4,148,356,490 SINGER THAILAND PUBLIC COMPANY LIMITED BALANCE SHEETS AS AT 30 JUNE (UNAUDITED) LIABILITIES AND SHAREHOLDERS' EQUITY (CONT'D) Consolidated Company 1999 1998 1999 1998 Baht Baht Baht Baht SHAREHOLDERS' EQUITY Share capital Registered, issued and fully paid 27,000,000 ordinary shares of Baht 10 each 270,000,000 270,000,000 270,000,000 270,000,000 Share premium 225,000,000 225,000,000 225,000,000 225,000,000 Surplus on revaluation of land 240,926,403 234,946,403 240,926,403 234,946,403 Retained earnings Appropriated - Legal reserve 27,000,000 27,000,000 27,000,000 27,000,000 Unappropriated 1,236,460,092 1,241,851,248 1,236,460,092 1,241,851,248 TOTAL SHAREHOLDERS' EQUITY 1,999,386,495 1,998,797,651 1,999,386,495 1,998,797,651 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 4,899,040,673 6,132,542,533 4,917,228,936 6,147,154,141 SINGER THAILAND PUBLIC COMPANY LIMITED STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE-MONTH PERIOD ENDED 30 JUNE Consolidated Company 1999 1998 1999 1998 Notes Baht Baht Baht Baht REVENUES Sales 989,814,302 976,130,389 980,440,228 962,116,308 Interest income from installment sales 124,282,014 197,803,959 124,282,014 197,803,959 Other income 12 6,755,122 4,919,329 8,535,861 5,186,628 TOTAL REVENUES 1,120,851,438 1,178,853,677 1,113,258,103 1,165,106,895 EXPENSES Cost of sales 642,940,714 637,356,631 638,290,062 630,966,057 Selling and administrative expenses 409,513,162 467,583,594 404,568,747 465,242,876 Directors' remuneration 100,000 100,000 100,000 100,000 Interest and other financial costs 44,726,363 94,106,875 44,246,198 91,791,064 TOTAL EXPENSES 1,097,280,239 1,199,147,100 1,087,205,007 1,188,099,997 Income (loss) from operations before income tax 23,571,199 (20,293,423) 26,053,096 (22,993,102) Income tax 1,076,575 1,611,545 - Income (loss) after income tax 22,494,624 (21,904,968) 26,053,096 (22,993,102) Share of (loss) profit from subsidiaries - - (3,558,472) 4,014,128 Income (loss) before extraordinary item 22,494,624 (21,904,968) 22,494,624 (18,978,974) Extraordinary item: 15 Loss from the change in exchange rate system - (5,302,636) - (8,228,630) NET INCOME (LOSS) FOR THE PERIOD 22,494,624 (27,207,604) 22,494,624 (27,207,604) EARNINGS PER SHARE Income (loss) before extraordinary item 0.83 (0.81) 0.83 (0.70) Extraordinary item - (0.20) - (0.31) Net income (loss) for the period 0.83 (1.01) 0.83 (1.01) SINGER THAILAND PUBLIC COMPANY LIMITED STATEMENTS OF INCOME (UNAUDITED) FOR THE SIX-MONTH PERIOD ENDED 30 JUNE Consolidated Company 1999 1998 1999 1998 Notes Baht Baht Baht Baht REVENUES Sales 1,793,742,406 1,993,039,679 1,776,050,009 1,966,468,744 Interest income from installment sales 267,032,785 423,478,189 267,032,785 423,478,188 Other income 12 25,439,026 13,105,380 25,686,019 13,045,988 TOTAL REVENUES 2,086,214,217 2,429,623,248 2,068,768,813 2,402,992,920 EXPENSES Cost of sales 1,153,783,549 1,252,412,798 1,145,982,738 1,241,594,030 Selling and administrative expenses 770,257,008 941,961,484 758,857,432 934,770,394 Directors' remuneration 200,000 200,000 200,000 200,000 Interest and other financial costs 115,756,122 209,657,584 111,892,120 203,312,101 (More)