ANNUAL F/S 1997/1998

AUDITOR'S REPORT To the Shareholders of Singer Thailand Public Company Limited I have examined the accompanying consolidated and company balance sheets as at 30 June 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 years then ended of Singer Thailand Public Company Limited and its subsidiaries, and of Singer Thailand Public Company Limited in accordance with generally accepted auditing standards which included such tests of the accounting records and such other auditing procedures as considered necessary. In my opinion, the aforementioned consolidated and company financial statements present fairly the financial position of Singer Thailand Public Company Limited and its subsidiaries, and of Singer Thailand Public Company Limited as at 30 June 1998 and 1997 and the results of their operations and their cash flows for the years then ended in conformity with generally accepted accounting principles consistently applied after restatement for the change, with which I concur, in the method of accounting for investments in subsidiaries in the company financial statements as described in note 3 to the consolidated and company financial statements. I draw attention to note 1 to the 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, therefore, the consolidated and company financial statements for the year ended 30 June 1998 do not include any adjustments that are not foreseeable as a result of the effects of the crisis. SUCHART LUENGSURASWAT Certified Public Accountant (Thailand) No. 2807 PRICEWATERHOUSECOOPERS LIMITED Bangkok 14 August 1998 SINGER THAILAND PUBLIC COMPANY LIMITED BALANCE SHEETS AS AT 30 JUNE 1998 AND 1997 ASSETS Consolidated Company 1998 1997 1998 1997 Restated Notes Baht Baht Baht Baht CURRENT ASSETS Cash in hand, at banks and in transit 4 56,814,490 42,644,723 53,873,172 41,971,152 Short-term investments 7 58,000,000 1,000,000 58,000,000 - Trade and installment accounts Receivable (net) 5 3,861,402,668 5,251,227,354 3,849,384,524 5,245,917,772 Inventories 6 1,107,324,579 1,735,313,228 1,050,397,600 1,685,905,167 Amounts due from and loans to subsidiaries 20 (b) - - 113,853,322 18,076,367 Prepaid rent 10 18,000,000 20,000,000 18,000,000 20,000,000 Other current assets 62,120,272 77,066,957 54,846,558 70,973,000 TOTAL CURRENT ASSETS 5,163,662,009 7,127,252,262 5,198,355,176 7,082,843,458 RECEIVABLE FROM AND LOANS TO EMPLOYEES 5,874,201 6,761,310 4,541,983 5,638,550 LONG-TERM INVESTMENTS 8 2,109,914 1,970,000 138,824,633 165,342,671 PROPERTY, PLANT AND EQUIPMENT (net) 9 728,000,624 738,379,187 571,776,644 579,456,448 PREPAID RENT 10 82,671,218 91,963,101 82,671,218 91,963,101 TOTAL ASSETS 5,982,317,966 7,966,325,860 5,996,169,654 7,925,244,228 ............................................................................................................................. Director ............................................................................................................................. Director SINGER THAILAND PUBLIC COMPANY LIMITED BALANCE SHEETS AS AT 30 JUNE 1998 AND 1997 LIABILITIES AND SHAREHOLDERS+ EQUITY Consolidated Company 1998 1997 1998 1997 Restated Notes Baht Baht Baht Baht CURRENT LIABILITIES Bank overdrafts and short-term loans 11 707,646,583 1,588,578,657 698,947,114 1,550,411,224 Current portion of long-term loans 13 40,000,000 320,000,000 40,000,000 320,000,000 Accounts payable - other companies 284,411,561 720,417,338 271,722,391 693,581,153 - related companies 7,783,156 15,150,372 7,783,156 15,150,372 Amounts due to - subsidiaries - - 41,922,287 33,443,380 - related companies 60,126,854 70,816,413 59,680,399 70,004,811 Dividends payable 35,445,645 24,717,729 35,445,645 24,717,729 Accrued income tax 2,605,719 96,538,662 - 94,263,432 Accrued liabilities 12 335,097,456 360,310,885 331,934,974 354,149,276 Other current liabilities 14 44,025,403 54,880,436 43,666,155 54,715,177 TOTAL CURRENT LIABILITIES 1,517,142,377 3,251,410,492 1,531,102,121 3,210,436,554 UNSECURED DEBENTURES 15 500,000,000 500,000,000 500,000,000 500,000,000 LONG-TERM LOANS 13 1,589,748,500 1,388,120,000 1,589,748,500 1,388,120,000 EMPLOYEES SECURITY DEPOSITS 176,316,249 228,338,496 176,243,435 228,230,802 PROVIDENT FUNDS 16 200,313,189 190,471,670 200,277,947 190,471,670 TOTAL LIABILITIES 3,983,520,315 5,558,340,658 3,997,372,003 5,517,259,026 SINGER THAILAND PUBLIC COMPANY LIMITED BALANCE SHEETS AS AT 30 JUNE 1998 AND 1997 LIABILITIES AND SHAREHOLDERS+ EQUITY (CONT+D) Consolidated Company 1998 1997 1998 1997 Restated Notes 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 17 234,946,403 235,866,403 234,946,403 235,866,403 Retained earnings: Appropriated | Legal reserve 27,000,000 27,000,000 27,000,000 27,000,000 Unappropriated 1,241,851,248 1,650,118,799 1,241,851,248 1,650,118,799 TOTAL SHAREHOLDERS+ EQUITY 1,998,797,651 2,407,985,202 1,998,797,651 2,407,985,202 TOTAL LIABILITIES AND SHAREHOLDERS+ EQUITY 5,982,317,966 7,966,325,860 5,996,169,654 7,925,244,228 SINGER THAILAND PUBLIC COMPANY LIMITED STATEMENTS OF INCOME FOR THE YEARS ENDED 30 JUNE 1998 AND 1997 Consolidated Company 1998 1997 1998 1997 Restated Notes Baht Baht Baht Baht REVENUES Sales 3,692,201,844 6,681,081,621 3,654,984,793 6,655,583,498 Interest from installment sales 1,441,092,179 1,690,991,025 1,441,092,179 1,690,991,025 Other income 16,399,603 20,367,520 15,972,335 14,756,153 TOTAL REVENUES 5,149,693,626 8,392,440,166 5,112,049,307 8,361,330,676 EXPENSES Cost of sales 2,731,603,130 4,450,596,375 2,713,361,284 4,459,192,482 Selling and administrative expenses 2,126,612,595 2,819,839,803 2,113,457,004 2,799,609,754 Directors remuneration 400,000 300,000 400,000 300,000 Interest and other financial costs 455,364,508 421,524,274 445,428,914 416,358,092 TOTAL EXPENSES 5,313,980,233 7,692,260,452 5,272,647,202 7,675,460,328 INCOME (LOSS)FROM OPERATION BEFORE INCOME TAX (164,286,607) 700,179,714 (160,597,895) 685,870,348 Income tax 5,694,561 209,150,995 - 203,409,135 IINCOME (LOSS) AFTER INCOME TAX (169,981,168) 491,028,719 (160,597,895) 482,461,213 Share of (loss) profit from Subsidiaries - - (12,886,072) 8,567,506 INCOME (LOSS) BEFORE EXTRAORDINARY ITEM (169,981,168) 491,028,719 (173,483,967) 491,028,719 Extraordinary item: Loss from the change in exchange rate system 21 (76,286,383) - (72,783,584) - NET INCOME (LOSS) FOR THE YEAR (246,267,551) 491,028,719 (246,267,551) 491,028,719 EARNINGS PER SHARE Income (loss) before Extraordinary item (6.29) 18.19 (6.42) 18.19 Extraordinary item (2.83) - (2.70) - Net income (loss) for the year (9.12) 18.19 (9.12) 18.19 SINGER THAILAND PUBLIC COMPANY LIMITED STATEMENTS OF CHANGES IN SHAREHOLDERS+ EQUITY FOR THE YEARS ENDED 30 JUNE 1998 AND 1997 Consolidated Company 1998 1997 1998 1997 Restated Notes 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 year - - - - 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 year - - - - Ending balance 225,000,000 225,000,000 225,000,000 225,000,000 Surplus on revaluation of land Beginning balance - as previously reported 235,866,403 235,866,403 128,788,768 128,788,768 Cummulative effect of change in method of accounting for investments in subsidiaries 3 - - 107,077,635 107,077,635 Beginning balance - as adjusted 235,866,403 235,866,403 235,866,403 235,866,403 Deduction during the year (920,000) - (920,000) - Ending balance 234,946,403 235,866,403 234,946,403 235,866,403 Retained earnings Appropriated | legal reserve Beginning balance 27,000,000 27,000,000 27,000,000 27,000,000 Addition during the year - - - - Ending balance 27,000,000 27,000,000 27,000,000 27,000,000 Unappropriated retained earnings Beginning balance - as previously reported 1,650,118,799 1,542,490,080 1,598,960,890 1,499,899,677 Cummulative effect of change in method of accounting for Investments in subsidiaries 3 - - 51,157,909 42,590,403 Beginning balance - as adjusted 1,650,118,799 1,542,490,080 1,650,118,799 1,542,490,080 Less: Dividends 18 (162,000,000) (383,400,000) (162,000,000) (383,400,000) Add: Net income (loss) for the year (246,267,551) 491,028,719 (246,267,551) 491,028,719 Ending balance 1,241,851,248 1,650,118,799 1,241,851,248 1,650,118,799 TOTAL SHAREHOLDERS+ EQUITY 1,998,797,651 2,407,985,202 1,998,797,651 2,407,985,202 SINGER THAILAND PUBLIC COMPANY LIMITED STATEMENTS OF RETAINED EARNINGS FOR THE YEARS ENDED 30 JUNE 1998 AND 1997 Consolidated Company 1998 1997 1998 1997 Restated Notes Baht Baht Baht Baht Unappropriated retained earnings Beginning balance - as previously reported 1,650,118,799 1,542,490,080 1,598,960,890 1,499,899,677 Cummulative effect of change in method of accounting for investments in subsidiaries 3 - - 51,157,909 42,590,403 Beginning balance - as adjusted 1,650,118,799 1,542,490,080 1,650,118,799 1,542,490,080 Net income (loss) for the year (246,267,551) 491,028,719 (246,267,551) 491,028,719 Dividend 18 (162,000,000) (383,400,000) (162,000,000) (383,400,000) Unappropriated retained earnings 1,241,851,248 1,650,118,799 1,241,851,248 1,650,118,799 Appropriated retained earnings Legal reserve, beginning balance 27,000,000 27,000,000 27,000,000 27,000,000 Additional reserve for the year - - - - Appropriated retained earnings 27,000,000 27,000,000 27,000,000 27,000,000 Retained earnings 1,268,851,248 1,677,118,799 1,268,851,248 1,677,118,799 SINGER THAILAND PUBLIC COMPANY LIMITED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED 30 JUNE 1998 AND 1997 Consolidated Company 1998 1997 1998 1997 Restated Baht Baht Baht Baht CASH FLOWS FROM OPERATING ACTIVITIES: Income (loss) before extraordinary item (169,981,168) 491,028,719 (173,483,967) 491,028,719 Adjusted by: Depreciation 44,389,019 43,267,566 41,865,882 40,525,335 Amortisation of prepaid rent 25,396,793 26,300,636 25,396,793 26,300,637 Allowance for doubtful accounts 107,583,676 19,384,000 107,462,476 19,384,000 Decrease (increase) in allowance for inventory obsolescence 4,073,903 (3,797,202) 2,900,000 - Provision for diminution in value of other investment 1,000,000 - 1,000,000 - Gain on disposal of fixed assets (935,623) (5,187) (1,651,933) (5,187) Share of loss (profit) from Subsidiaries - - 12,886,072 (8,567,506) Decrease (increase) in inventories 623,914,746 (94,563,062) 632,607,568 (97,205,010) Decrease (increase) in debtors and other current assets 1,297,187,696 (278,708,975)1,209,420,259 (296,958,744) (Decrease) in creditors and other current liabilities (489,397,478) (154,823,897) (463,719,305) (209,458,501) (Decrease) in bank overdrafts and short-term loans (881,643,201) (525,782,473) (852,175,237) (445,239,767) (Decrease) in accrued income tax (93,932,943) (63,674,431) (94,263,432) (62,719,987) Cash flows from operating activities before extraordinary item 467,655,420 (541,374,306) 448,245,176 (542,916,011) Realised gain from the change in exchange rate system 5,134,707 - 8,637,506 - Net cash inflow (outflow) from operating activities 472,790,127 (541,374,306) 456,882,682 (542,916,011) (More)