NSOLIDATED FINANCIAL STATEMENTS FIRST QUARTER

5 Amounts due from subsidiaries Amounts due form subsidiaries as at 31 March comprise: Company 1999 1998 Baht Baht Amounts due from - S.T.L. Electronics Limited 885,443 12,964,053 - other subsidiaries 71,525 56,547 956,968 13,020,600 6 Amounts due from related companies Amounts due from related companies as at 31 March comprise: Consolidated Company 1999 1998 1999 1998 Baht Baht Baht Baht Amounts due from - The Singer Company N.V. 1,925,541 845,194 1,925,541 845,194 (registered in Netherland) - other related companies - 28,484 - 28,484 1,925,541 873,678 1,925,541 873,678 7 Loans to subsidiaries Loans to subsidiaries as at 31 March comprise: Company 1999 1998 Baht Baht Loans to - Singer Industries (Thailand) Limited 70,000,000 87,292,000 - S.T.L. Electronics Limited 36,000,000 19,100,000 106,000,000 106,392,000 Loans to subsidiaries bear interest at the rate of 11.5% per annum (1998: between 15% - 16% per annum) and are repayable on demand. 8 Long-term investments Long-term investments as at 31 March can be summarised as follows: Consolidated Company 1999 1998 1999 1998 Baht Baht Baht Baht Promissory note 1,139,914 - - - Investment in subsidiaries - - 129,774,835 147,806,315 Investment in other company 800,000 970,000 800,000 970,000 1,939,914 970,000 130,574,835 148,776,315 Investment in other company represents investment in Thai Swedish Furniture Co., Ltd., which the company holds 9.95% of its share capital. 8 Long-term investments (Cont'd) Investments in subsidiaries in the company financial statements as at 31 March comprise the following companies: 1999 Amount of Amount in Nature of Paid up capital Investment Cost method Equity method Balance sheet Nature of business relationship (Baht) Portion % (Baht) (Baht) (Baht) Singer Industries (Thailand) Limited Manufacturing Holding 5,000,000 99.88 4,994,000 111,334,565 111,334,565 Singer (Broker) Limited Life insurance Broker Holding 200,000 99.70 199,400 20,821,190 20,821,190 Singer Trading (Thailand) Limited Trading Holding 125,000 99.86 124,825 135,566 135,566 Sansui (Thailand) Limited Trading Holding 50,000 50.86 25,430 (40,210) (40,210) S.T.L. Electronics Limited Trading Holding 5,000,000 99.84 4,992,000 (2,476,276) (2,476,276) 10,335,655 129,774,835 129,774,835 1998 Amount of Amount in Nature of Paid up capital Investment Cost method Equity method Balance sheet Nature of business relationship (Baht) Portion % (Baht) (Baht) (Baht) Singer Industries (Thailand) Limited Manufacturing Holding 5,000,000 99.88 4,994,000 119,479,390 119,479,390 Singer (Broker) Limited Life insurance Broker Holding 200,000 99.70 199,400 28,426,187 28,426,187 Singer Trading (Thailand) Limited Trading Holding 125,000 99.86 124,825 158,914 158,914 Sansui (Thailand) Limited Trading Holding 50,000 50.86 25,430 (29,747) (29,747) S.T.L. Electronics Limited Trading Holding 1,250,000 99.84 1,248,000 (228,429) (228,429) 6,591,655 147,806,315 147,806,315 9 Accounts payable related companies Accounts payable related companies represent the outstanding balance for purchase of goods from a number of related companies aboard. 10 Accounts payable - subsidiaries Accounts payable subsidiaries as at 31 March comprise: Company 1999 1998 Baht Baht Accounts payable - Singer Industries (Thailand) Limited 10,413,557 11,526,640 - Singer (Broker) Limited 25,338,077 36,709,397 35,751,634 48,236,037 11 Amount due to related company Amount due to related company represents outstanding balance with a related company abroad for trademark license fee and offshore service fee which are calculated at 0.1% and 1% of total net sales respectively. 12 Other current liabilities Other current liabilities as at 31 March comprise: Consolidated Company 1999 1998 1999 1998 Baht Baht Baht Baht Advance from customers 10,231,964 10,991,163 10,231,964 10,991,163 Value added tax payable 8,726,300 26,550,547 8,514,182 25,731,290 Other accounts payable 10,985,453 4,139,765 10,903,430 4,089,811 29,943,717 41,681,475 29,649,576 40,812,264 13 Other income The company has been informed by the Stock Exchange of Thailand that certain shareholders do not qualify for entitling to dividends because of the non-compliance with the regulation in respect of nationality of the shareholders. The company therefore has reversed the dividends payable declared before June 1995 amounting to Baht 17 million and recognised as other income in the interim financial statements for the three-month period ended 31 March 1999. 14 Cash and cash equivalents Cash and cash equivalents consist of cash in hand, at banks and in transit and loans to financial institutions for periods not exceeding three months as follows: Consolidated Company 1999 1998 1999 1998 Baht Baht Baht Baht Cash in hand, at banks and in transit 145,751,039 17,508,537 144,121,597 16,891,841 Short-term investments - 16,000,000 - 15,000,000 145,751,039 33,508,537 144,121,597 31,891,841 15 Related party transactions During the period the company enters into a number of transactions with subsidiaries and related companies as follows: Subsidiaries a) Purchases of goods from Singer Industries (Thailand) Limited totalling Baht 38,655,000 (1998 : Baht 20,538,050). The transfer price is determined at cost plus gross margin. b) Sales of goods to S.T.L. Electronics Limited totalling Baht 1,229,626 (1998 : None). The transfer price is determined at cost plus gross margin. c) Interest income on loans to the following subsidiaries: - Singer Industries (Thailand) Limited of Baht 2,103,836 (1998 : Baht 2,844,004). The loan balance at 31 March 1999 amounted to Baht 70 million (1998 : Baht 87.29 million) bearing interest at the rate of 11.50% per annum (1998 : 16% per annum). - S.T.L. Electronic Company Limited of Baht 1,073,151 (1998: 702,828). The loan balance at 31 March 1999 amounted to Baht 36 million (1998 : Baht 19.1 million) bearing interest at the rate of 11.50% per annum (1998 : 16% per annum). Related companies a) Purchases of goods from related companies abroad totalling Baht 2,556,220 (1998: Baht 30,704,164). The purchase price has been negotiated between the company and its related companies. b) Trademark license fee totalling Baht 938,361 (1998 : Baht 1,230,026) payable to a related company abroad, calculated at 0.1% of total net sales in accordance with signed agreement. 16 Extraordinary item Gain from the change in exchange rate system On 2 July 1997, the Ministry of Finance announced a change in the exchange rate system for Thai Baht from the basket of currencies system to the managed float system which resulted in a significant decline in Thai Baht value. This caused the company and subsidiaries to incur a gain on exchange for the three- month period ended 31 March 1998 of Baht 53 million which the company had fully recognised as income. This exchange gain was reported as extraordinary item in accordance with the announcement of the Institute of Certified Accountants and Auditors of Thailand No. 002/2540-2542 dated 19 September 1997. At 31 March 1998, the company had a three-year long term loan denominated in foreign currency amounting to US$ 5 million. The loan will be repaid in US$ by three consecutive semi-annual equal installments commencing of the date falling two years after the date of first drawing. The first repayment will be due in July 1999. The liability was not hedged by forward contracts or other financial instruments, and was translated into Baht at the rates of exchange as at 31 March 1998. The unrealised gain on exchange rate relating to these liabilities for three-month period ended 31 March 1998 amounted to Baht 42 million which is a part of the Baht 53 million gain on exchange rate referred to in the previous paragraph. 17 Restatement of 1998 interim financial statements In the accounting year ended 30 June 1998, the company's management made a dicision to change the method of accounting for investments in subsidiaries from the cost method to the equity method effective from 1 July 1997. The interim financial statements for the three-month period ended 31 March 1998 have, therefore, been restated to reflect the change in the accounting policy. 18 Segment information The company trades in a single business segment and in a single geographical area i.e., Thailand. Accordingly no segment information has been presented. 19 Year 2000 issue The company has commenced modifying and upgrading its key financial information and operational systems to deal with the Year 2000 issue since 1995 by the company's specialist and hiring the outside company to inspect and modify. The company expects to complete the systems within June 1999. As at 31 March 1999, 80% of systems have been completed. The company has estimated the expenditures relating to purchase new software and hardware not exceeding Baht 7 million. The expenditure relating to purchase new software will be recognised as expenses when incurred. Although the company expects to fully complete the modification on its computer system in 1999, the company remains exposed to the risk that other companies with which the company transacts might not be the Year 2000 compliant, which might have a significant effect on the company's operations. However, the company is unable to estimate the amount of the loss that the company might incur from such a situation at the present time. 20 Reclassification Certain reclassifications have been made to the presentation of the interim financial statements for the three-month period ended 31 March 1998 for comparative purpose. SINGER THAILAND PUBLIC COMPANY LIMITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AND COMPANY FINANCIAL STATEMENTS (UNAUDITED) 31 MARCH 1999 16 21