REVIEWED QUARTER-3 1997/1998

AUDITOR'S REPORT To the Shareholders of Singer Thailand Public Company Limited I have performed a review of the accompanying consolidated and company balance sheets as at 31 March 1998 and 1997, 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 nine-month periods then ended of Singer Thailand Public Company Limited in accordance with standards established by the Institute of Certified Accountants and Auditors of Thailand. A review of interim consolidated and company 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 as stated above, 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 Note 5 to the interim consolidated and company financial statements. 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. The interim consolidated and company financial statements for the three-month and nine-month periods ended 31 March 1997 do not include any adjustments that may arise as a result of the effects of the crisis. SUCHART LUENGSURASWAT Certified Public Accountant (Thailand) No. 2807 PRICE WATERHOUSE LIMITED Bangkok 22 April 1998 SINGER THAILAND PUBLIC COMPANY LIMITED BALANCE SHEETS AS AT 31 MARCH (UNAUDITED) ASSETS Consolidated Company 1998 1997 1998 1997 Baht Baht Baht Baht CURRENT ASSETS Cash in hand, at banks and in transit 17,508,537 149,447,904 16,891,841 148,870,983 Short-term investments 16,000,000 51,000,000 15,000,000 50,000,000 Trade and installment accounts receivable (net) 4,139,604,940 5,154,187,780 4,126,530,668 5,150,729,201 Inventories 1,317,353,260 1,703,402,887 1,249,343,031 1,641,733,984 Amounts due from - subsidiary - - 13,020,600 3,085,717 - related company 28,484 - 28,484 - Loans to subsidiaries (Note 6 (b)) - - 106,392,000 - Prepaid rent 20,000,000 24,000,000 20,000,000 24,000,000 Other current assets 60,675,967 85,952,638 52,370,927 80,888,830 TOTAL CURRENT ASSETS 5,571,171,188 7,167,991,209 5,599,577,551 7,099,308,715 RECEIVABLE FROM AND LOANS TO EMPLOYEES 6,349,612 5,241,806 5,372,133 3,942,650 INVESTMENTS IN SUBSIDIARIES (Note 2) - - 6,591,655 5,343,655 OTHER INVESTMENT (Note 2) 970,000 1,970,000 970,000 1,970,000 PROPERTY, PLANT AND EQUIPMENT (net) 730,688,433 732,610,207 573,781,326 573,266,799 PREPAID RENT 83,609,438 85,104,316 83,609,438 85,104,316 TOTAL ASSETS 6,392,788,671 7,992,917,538 6,269,902,103 7,768,936,135 ............................................................................................................................. Director ............................................................................................................................. Director SINGER THAILAND PUBLIC COMPANY LIMITED BALANCE SHEETS AS AT 31 MARCH (UNAUDITED) LIABILITIES AND SHAREHOLDERS' EQUITY Consolidated Company 1998 1997 1998 1997 Baht Baht Baht Baht CURRENT LIABILITIES Bank overdrafts and short-term loans 863,343,128 1,975,821,348 855,606,284 1,928,004,982 Current portion of long-term loans 40,000,000 616,000,000 40,000,000 616,000,000 Accounts payable - other companies 366,828,218 998,751,740 352,699,584 964,262,603 - related companies 39,986,943 1,411,218 39,986,943 1,411,218 Amounts due to - subsidiary - - 48,236,037 30,329,689 - related companies 113,287,324 70,050,661 112,906,409 68,662,150 Dividends payable 35,445,645 22,659,110 35,445,645 22,659,110 Accrued income tax 1,267,131 59,898,351 - 57,266,392 Accrued liabilities 414,254,027 348,731,945 409,007,320 343,256,632 Other current liabilities (Note 3) 41,429,762 48,134,866 40,560,551 47,968,827 TOTAL CURRENT LIABILITIES 1,915,842,178 4,141,459,239 1,934,448,773 4,079,821,603 UNSECURED DEBENTURES 500,000,000 - 500,000,000 - LONG-TERM LOANS 1,572,203,500 1,002,600,000 1,572,203,500 1,002,600,000 EMPLOYEES SECURITY DEPOSITS 185,288,219 225,803,945 185,185,980 225,700,041 PROVIDENT FUNDS 193,449,519 182,442,686 193,449,519 181,414,611 TOTAL LIABILITIES 4,366,783,416 5,552,305,870 4,385,287,772 5,489,536,255 SINGER THAILAND PUBLIC COMPANY LIMITED BALANCE SHEETS AS AT 31 MARCH (UNAUDITED) LIABILITIES AND SHAREHOLDERS' EQUITY (CONT'D) Consolidated Company 1998 1997 1998 1997 Baht Baht Baht Baht SHAREHOLDERS' EQUITY Share capital Registered, issued and fully paid 27,000,000,000 ordinary shares of Bht 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 234,946,403 235,866,403 127,868,768 128,788,768 Retained earnings: Appropriated - Legal reserve 27,000,000 27,000,000 27,000,000 27,000,000 Unappropriated 1,269,058,852 1,682,745,265 1,234,745,563 1,628,611,112 TOTAL SHAREHOLDERS' EQUITY 2,026,005,255 2,440,611,668 1,884,614,331 2,279,399,880 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 6,392,788,671 7,992,917,538 6,269,902,103 7,768,936,135 SINGER THAILAND PUBLIC COMPANY LIMITED STATEMENTS OF INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED 31 MARCH Consolidated Company 1998 1997 1998 1997 Baht Baht Baht Baht REVENUES Sales 894,908,163 1,809,403,738 882,351,307 1,803,580,744 Interest from installment sales 347,675,357 408,285,728 347,675,357 408,285,728 Other income 8,186,051 9,103,517 7,859,360 6,765,763 TOTAL REVENUES 1,250,769,571 2,226,792,983 1,237,886,024 2,218,632,235 EXPENSES Cost of sales 615,056,167 1,187,879,901 610,627,973 1,193,307,891 Selling and administrative expenses 474,477,890 708,422,890 469,627,518 704,196,396 Interest and other financial costs 115,550,709 117,346,826 111,521,037 114,653,946 Income tax 917,098 59,359,489 - 57,367,657 TOTAL EXPENSES 1,206,001,864 2,073,009,106 1,191,776,528 2,069,525,890 INCOME BEFORE EXTRAORDINARY ITEM 44,767,707 153,783,877 46,109,496 149,106,345 Extraordinary item: Gain from the change in exchange rate system (Note 4) 53,010,920 - 53,272,550 - NET INCOME FOR THE PERIOD 97,778,627 153,783,877 99,382,046 149,106,345 EARNINGS PER SHARE Income before extraordinary item 1.66 5.70 1.71 5.52 Extraordinary item 1.96 - 1.97 - Net income for the period 3.62 5.70 3.68 5.52 SINGER THAILAND PUBLIC COMPANY LIMITED STATEMENTS OF INCOME (UNAUDITED) FOR THE NINE MONTHS ENDED 31 MARCH Consolidated Company 1998 1997 1998 1997 Baht Baht Baht Baht REVENUES Sales 2,847,829,083 5,018,256,124 2,824,626,112 4,999,461,174 Interest from installment sales 1,111,530,592 1,283,712,805 1,111,530,592 1,283,712,805 Other income 11,480,274 14,477,890 10,785,707 9,246,062 TOTAL REVENUES 3,970,839,949 6,316,446,819 3,946,942,411 6,292,420,041 EXPENSES Cost of sales 2,094,246,499 3,321,955,280 2,082,395,227 3,340,000,966 Selling and administrative expenses 1,659,329,001 2,106,259,019 1,648,569,707 2,089,350,136 Interest and other financial costs 361,257,633 312,722,936 353,637,850 306,113,139 Income tax 4,083,016 172,560,530 - 166,344,365 TOTAL EXPENSES 4,118,916,149 5,913,497,765 4,084,602,784 5,901,808,606 INCOME (LOSS) BEFORE EXTRAORDINARY ITEM (148,076,200) 402,949,054 (137,660,373) 390,611,435 Extraordinary item: Loss from the change in exchange rate system (Note 4) (70,983,747) - (64,554,954) - NET INCOME (LOSS) FOR THE PERIOD (219,059,947) 402,949,054 (202,215,327) 390,611,435 EARNINGS PER SHARE Income (loss) before extraordinary item (5.48) 14.92 (5.10) 14.47 Extraordinary item (2.63) - (2.39) - Net income (loss) for the period (8.11) 14.92 (7.49) 14.47 SINGER THAILAND PUBLIC COMPANY LIMITED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) FOR THE THREE MONTHS ENDED 31 MARCH Consolidated Company 1998 1997 1998 1997 Baht Baht Baht Baht Share capital - ordinary shares Beginning balance 270,000,000 270,000,000 270,000,000 270,000,000 Addition during the period - - - - Ending balance 270,000,000 270,000,000 270,000,000 270,000,000 Additional paid-in capital Share premium Beginning balance 225,000,000 225,000,000 225,000,000 225,000,000 Addition during the period - - - - Ending balance 225,000,000 225,000,000 225,000,000 225,000,000 Surplus on revaluation of land Beginning balance 235,866,403 235,866,403 128,788,768 128,788,768 Deduction during the period (920,000) - (920,000) - Ending balance 234,946,403 235,866,403 127,868,768 128,788,768 Retained earnings Appropriated - legal reserve Beginning balance 27,000,000 27,000,000 27,000,000 27,000,000 Addition during the period - - - - Ending balance 27,000,000 27,000,000 27,000,000 27,000,000 Unappropriated retained earnings Beginning balance 1,171,280,225 1,528,961,388 1,135,363,517 1,479,504,767 Less: Dividends - - - Legal reserve - - - Add: Net income for the period 97,778,627 153,783,877 99,382,046 149,106,345 Ending balance 1,269,058,852 1,682,745,265 1,234,745,563 1,628,611,112 TOTAL SHAREHOLDERS' EQUITY 2,026,005,255 2,440,611,668 1,884,614,331 2,279,399,880 (More)