(ADD3)CONSOLIDATED FINANCIAL STATEMENTS Q1

10 Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, at banks and debt securities maturing within three months as follows: Consolidated Company 31 March 31 December 31 March 31 December 2001 2000 2001 2000 Baht Baht Baht Baht Cash on hand and at banks 38,903,925 103,096,086 33,157,542 99,887,701 Short-term investments - held-to- maturity debt securities 40,000,000 440,042,971 40,000,000 440,042,971 78,903,925 543,139,057 73,157,542 539,930,672 Singer Thailand Public Company Limited Notes to the Interim Consolidated and Company Financial Statements (Unaudited) For the three-month periods ended 31 March 2001 and 2000 11 Related Party Transactions Significant transactions with related parties comprised transactions with subsidiaries and other related companies which can be summarised as follows: a) Sales of goods and other income For the three-month period ended 31 March Consolidated Company 2001 2000 2001 2000 Baht Baht Baht Baht Sales of goods Subsidiary - S.T.L. Electronics Limited - - 467,044 4,963,199 Other income Interest income Subsidiaries - Singer Industries (Thailand) Limited - - 1,729,110 1,657,945 - S.T.L. Electronics Limited - - 405,516 754,404 - - 2,134,626 2,412,349 Sales to subsidiary are based on the transfer price which is determined at cost plus gross margin at 5% to 10% of cost (2000 : 5% to 10% of cost). b) Purchases of goods and other expenses For the three-month period ended 31 March Consolidated Company 2001 2000 2001 2000 Baht Baht Baht Baht Purchases of goods Subsidiary - Singer Industries (Thailand) Limited - - 48,982,891 57,717,339 Related companies - Singer Sourcing Limited 17,107,575 - 6,398,098 - - Singer (Shanghai) Sewing Machine Company Limited 8,278,881 10,574,043 286,620 - - Singer Brazil Limited 1,060,190 1,478,823 1,060,190 1,478,823 - Singer Industrial Sewing Product Company Limited 519,525 - 519,525 - - Singer India Limited 290,668 2,723,416 3,187 - - Singer Sewing Machine Company Limited 43,756 - 43,756 - - Singer Nikko Company Limited - 6,081,886 - 1,576,333 - P.T. Singer Industries Indonesia Limited - 5,046,682 - - - Singer Industries (Taiwan) Limited - 1,123,195 - 1,123,195 - Others 296,412 175,959 296,412 175,959 27,597,007 27,204,004 57,590,679 62,071,649 Singer Thailand Public Company Limited Notes to the Interim Consolidated and Company Financial Statements (Unaudited) For the three-month periods ended 31 March 2001 and 2000 11 Related Party Transactions (Cont'd) b) Purchases of goods and other expenses (Cont'd) For the three-month period ended 31 March Consolidated Company 2001 2000 2001 2000 Baht Baht Baht Baht Other expenses Trademark license fee Related company - The Singer Company B.V. 983,995 1,001,433 983,995 1,001,433 Offshore service fee Related company - The Singer Company B.V. 9,839,952 10,014,333 9,839,952 10,014,333 Royalty fee Related company - The Singer Company B.V. 521,739 913,492 - - 11,345,686 11,929,258 10,823,947 11,015,766 Purchase from subsidiaries is based on the transfer price which is determined at cost plus gross margin at 5% to 10% of cost (2000 : 5% to 10% of cost). Purchase from related companies is based on the fair price which would be charged to an independent third party. Trademark license fee is payable to the Singer Company B.V. abroad, which is calculated at 0.1% of total net sales in accordance with signed agreement. Offshore service fee is payable to the Singer Company B.V. abroad, which is calculated at 1% of total net sales in accordance with signed agreement. Royalty fee is payable to the Singer Company B.V. abroad, which is calculated at 5% of total net sales of sewing machines in accordance with signed agreement. Singer Thailand Public Company Limited Notes to the Interim Consolidated and Company Financial Statements (Unaudited) For the three-month periods ended 31 March 2001 and 2000 11 Related Party Transactions (Cont'd) c) Outstanding balances arising from sales/purchases of goods and other income/expenses Consolidated Company 31 March 31 December 31 March 31 December 2001 2000 2001 2000 Baht Baht Baht Baht Amounts due from related companies Subsidiaries - - 321,495 100,845 Related companies 1,907,162 3,081 - - 1,907,162 3,081 321,495 100,845 Trade accounts payable - related companies Subsidiaries - Singer Industries (Thailand) Limited - - 12,263,212 1,449,902 - Singer (Broker) Limited - - 34,801,656 34,191,152 - S.T.L. Electronics Limited - - - 27,885 Related companies 5,074,574 2,037,405 5,019,626 1,984,930 5,074,574 2,037,405 52,084,494 37,653,869 Amounts due to related company - The Singer Company B.V. 56,526,301 46,884,522 56,004,562 46,305,606 d) Loans to subsidiaries Company For the three - month period For the year ended ended 31 March 31 December 2001 2000 Baht Baht Singer Industries (Thailand) Limited Beginning balance 85,000,000 71,500,000 Loans made during the period/year - 15,000,000 Loans repaid during the period/year - -1,500,000 Ending balance 85,000,000 85,000,000 S.T.L. Electronics Limited Beginning balance 20,000,000 32,000,000 Loans made during the period/year - 3,000,000 Loans repaid during the period/year -100,000 -15,000,000 Ending balance 19,900,000 20,000,000 As at 31 March 2001, loans to subsidiaries bear interest at the rate of 8.25% per annum (31 December 2000: 8.25% per annum). Singer Thailand Public Company Limited Notes to the Interim Consolidated and Company Financial Statements (Unaudited) For the three-month periods ended 31 March 2001 and 2000 11 Related Party Transactions (Cont'd) e) Investments in subsidiaries Investments in subsidiaries in the company financial statements comprise the following companies: Company 31 March 2001 Amount of Amount in Country of Nature of Paid up capitalInvestment Cost methodEquity method balance sheet incorporation business (Baht)portion % (Baht) (Baht) (Baht) Singer Industries (Thailand) Limited Thai Manufacturing 5,000,000 99.88 4,994,000 104,946,913 104,946,913 Singer (Broker) Limited Thai Life insurance broker 200,000 99.7 199,400 31,617,192 31,617,192 Singer Trading (Thailand) Limited Thai Trading 125,000 99.86 124,825 104,294 104,294 Sansui (Thailand) Limited Thai Trading 50,000 50.86 25,430 - - S.T.L. Electronics Limited Thai Trading 5,000,000 99.84 4,992,000 - - 10,335,655 136,668,399 136,668,399 Singer Thailand Public Company Limited Notes to the Interim Consolidated and Company Financial Statements (Unaudited) For the three-month periods ended 31 March 2001 and 2000 11 Related Party Transactions (Cont'd) e) Investments in subsidiaries (Cont'd) Company 31 March 2001 Amount of Amount in Country of Nature of Paid up capitalInvestment Cost method Equity method balance sheet incorporation Business (Baht)portion % (Baht) (Baht) (Baht) Singer Industries (Thailand) Limited Thai Manufacturing 5,000,000 99.88 4,994,000 103,780,646 103,780,646 Singer (Broker) Limited Thai Life insurance Broker 200,000 99.7 199,400 29,552,077 29,552,077 Singer Trading (Thailand) Limited Thai Trading 125,000 99.86 124,825 107,440 107,440 Sansui (Thailand) Limited Thai Trading 50,000 50.86 25,430 - - S.T.L. Electronics Limited Thai Trading 5,000,000 99.84 4,992,000 - - 10,335,655 133,440,163 133,440,163 As at 31 March 2001, investments in Sansui (Thailand) Limited and S.T.L. Electronics Limited have a value of Baht 0 (31 December 2000 : Baht 0) as such subsidiaries incur a loss in excess of investments. In addition, the negative investments in Sansui (Thailand) Limited and S.T.L. Electronics Limited are presented as liabilities arising from investments in subsidiaries amounting to Baht 51,306 and Baht 15,395,895 respectively (31 December 2000 : Baht 49,907 and Baht 15,210,543). INTERIM CONSOLIDATED FINANCIAL STATEMENTS AND COMPANY FINANCIAL STATEMENTS ( UNAUDITED ) 31 MARCH 2001 24