(ADD2)CONSOLIDATED FINANCIAL STATEMENTS Q1

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 1 Accounting Policies The interim consolidated and company financial statements are prepared in accordance with the accounting principles generally accepted in Thailand, and are presented in the condensed format as required by Thai Accounting Standard No. 41, "Interim Financial Reporting" with additional disclosures, in case of the primary financial statements (i.e. balance sheets, statements of income, changes in shareholders' equity, retained earnings and cash flows), based on the format prescribed by the Ministerial Regulation No. 7 (B.E. 2539) in accordance with the requirements of the Securities and Exchange Commission and the Stock Exchange of Thailand. The accounting policies used in the preparation of the interim financial statements are consistent with those used in the annual financial statements for the year ended 31 December 2000. Costs that are incurred unevenly during the financial year are recognised as expense or deferred in the interim report only if it would be also appropriate to recognise or defer such costs at the end of the financial year. Income tax expense is recognised based on the best estimate of the weighted average annual income tax rate expected for the full financial year. The estimated average annual tax rate used is 30%. These interim financial statements should be read in conjunction with the 2000 annual financial statements. 2 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. 3 Earnings Per Share Basic earnings per share is calculated by dividing the net profit (loss) attributable to shareholders by the weighted average number of ordinary shares in issue during the period (31 March 2001 : 27,000,000 shares; 31 March 2000 : 27,000,000 shares). 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 4 Short-Term Investments Consolidated and Company For the three-month For the year period ended ended 31 March 31 December 2001 2000 Baht Baht Opening net book amount 80,101,366 - Additions during the period/year 80,000,000 1,228,324,020 Disposals during the period/year -80,101,366 -1,148,222,654 Closing net book amount 80,000,000 80,101,366 Consolidated and Company 31 March 2001 Available-for-sale Held-to-maturity securities securities Total Baht Baht Baht Debt securities 40,000,000 40,000,000 80,000,000 5 Trade and Installment Accounts Receivable, net Consolidated Company 31 March 31 December 31 March 31 December 2001 2000 2001 2000 Baht Baht Baht Baht Trade and installment accounts receivable 3,369,959,017 3,407,488,090 3,366,253,197 3,404,120,678 Less: Unearned carrying charges -451,890,708 -453,525,176 -451,890,708 -453,525,176 2,918,068,309 2,953,962,914 2,914,362,489 2,950,595,502 Less: Allowance for doubtful accounts -473,905,353 -471,439,142 -472,885,353 -469,849,142 Trade and installment accounts receivable, net 2,444,162,956 2,482,523,772 2,441,477,136 2,480,746,360 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 5 Trade and Installment Accounts Receivable, net (Cont'd) Trade and installment accounts receivable which are overdue by more than 3 months can be analysed as follows: Trade accounts receivable - installment sales and credit sales Consolidated Company 31 March 31 December 31 March 31 December 2001 2000 2001 2000 Baht Baht Baht Baht Over 3-6 months 21,675,052 21,286,661 21,629,020 21,236,406 Over 6-12 months 28,383,186 23,841,445 28,288,593 23,644,350 Over 12 months 54,825,651 61,466,429 53,922,112 60,092,583 104,883,889 106,594,535 103,839,725 104,973,339 Restructured debt (Note 6) 48,818,913 49,288,913 48,818,913 49,288,913 153,702,802 155,883,448 152,658,638 154,262,252 Less: Allowance for doubtful accounts -137,020,000 -142,090,000 -136,000,000 -140,500,000 16,682,802 13,793,448 16,658,638 13,762,252 Trade accounts receivable - other Consolidated Company 31 March 31 December 31 March 31 December 2001 2000 2001 2000 Baht Baht Baht Baht Over 3-6 months 13,037,461 16,404,298 13,037,461 16,404,298 Over 6-12 months 33,480,144 33,400,470 33,480,144 33,400,470 Over 12 months 94,856,734 86,903,704 94,856,734 86,903,704 141,374,339 136,708,472 141,374,339 136,708,472 Less: Allowance for doubtful accounts -58,850,000 -57,000,000 -58,850,000 -57,000,000 82,524,339 79,708,472 82,524,339 79,708,472 Employees receivable Consolidated Company 31 March 31 December 31 March 31 December 2001 2000 2001 2000 Baht Baht Baht Baht Employees receivable 327,100,415 320,410,755 327,100,415 320,410,755 Less: Allowance for doubtful accounts -278,035,353 -272,349,142 -278,035,353 -272,349,142 49,065,062 48,061,613 49,065,062 48,061,613 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 5 Trade and Installment Accounts Receivable, net (Cont'd) Employees receivable are the amount of damage caused by employees failing in their responsibilities. As at 31 March 2001, the Company has already made allowance for doubtful accounts up to 85% of employees receivable (31 December 2000 : 85%). The Company's management believes that the Company will be able to collect the remaining 15% of these debts (31 December 2000 : 15%). 6 Troubled Debt Restructuring (TDR) The Company has an outstanding receivable which has been restructured as follows: 31 March 2001 Consolidated Company Number of Number of loans Baht loans Baht Restructurings in 1999 1 48,818,913 1 48,818,913 31 December 2000 Consolidated Company Number of Number of loans Baht loans Baht Restructurings in 1999 1 49,288,913 1 49,288,913 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 7 Property, Plant and Equipment For the three-month period ended 31 March 2001 Consolidated Company Baht Baht Opening net book amount 689,354,002 540,217,506 Additions 8,286,785 8,286,785 Disposals -1,248,265 -1,248,265 Depreciation charge -12,366,883 -11,684,006 Closing net book amount 684,025,639 535,572,020 8 Long-Term Borrowings Consolidated and Company 31 March 31 December 2001 2000 Baht Baht Current portion of borrowings Loans from financial institutions 295,500,000 295,500,000 Unsecured debentures 299,493,000 293,760,000 594,993,000 589,260,000 Long-term portion of borrowings Loans from financial institutions 169,625,000 206,000,000 Unsecured debentures 323,325,000 400,284,000 492,950,000 606,284,000 Total long-term borrowings 1,087,943,000 1,195,544,000 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 8 Long-Term Borrowings (Cont'd) The movements in the borrowings can be summarised as follows: Consolidated and Company For the three-month period ended 31 March 2001 Baht Opening amount 1,195,544,000 Repayment of long-term borrowings -107,601,000 Closing amount 1,087,943,000 Long-term borrowings are comprised : Consolidated and Company 31 March 31 December 2001 2000 Baht Baht Loans from financial institutions in Thai Baht 465,125,000 501,500,000 Unsecured debentures 622,818,000 694,044,000 Total long-term borrowings 1,087,943,000 1,195,544,000 Loans from financial institutions in Thai Baht as at 31 March 2001 comprise the following: - Loan from financial institution in Thailand amounting to Baht 150 million (31 December 2000: Baht 150 million). The loan bears interest at 8% per annum (31 December 2000: 8% per annum). The loan is due within 1 year. - Syndicated loans from financial institutions in Thailand for which Thai Farmer Bank Public Company Limited acted as the lead manager and Bangkok Bank Public Company Limited acted as the facility agent for the Company amounting to Baht 400 million. The Company received the loan of Baht 200 million in May and Baht 200 million is August 2000. The loans bear interest at MLR per annum. The loans and interest are due for redemption every month commencing September 2000 until May 2003. Unsecured debentures comprise the following: - As at 31 March 2001, the Company has three-year unsecured debentures totalling Baht 900,000,000 comprising 900,000 debentures of Baht 1,000 each bearing interest at the rate of 7.75% per annum. The debentures were approved by the Securities and Exchange Commission in February 2000 and are due for redemption every three-month periods until the last redemption on 10 February 2003. 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 9 Cash Flows from Operating Activities Reconciliation of net profit (loss) to cash flows from operating activities: For the three-month period ended 31 March Consolidated Company 2001 2000 2001 2000 Baht Baht Baht Baht Net profit (loss) 61,796,496 37,160,230 61,796,496 37,160,230 Adjustments for: (Gain) loss on exchange rate 176,453 -1,012,459 176,453 -1,012,459 Depreciation 12,366,883 12,166,468 11,684,006 11,424,612 Amortisation of prepaid rent 3,932,537 4,646,968 3,932,537 4,646,968 Increase (decrease) in allowance for doubtful accounts 2,466,211 -14,062,000 3,036,211 -14,200,000 Increase (decrease) in allowance for inventory obsolescence -2,892,094 5,896,649 -3,100,000 4,700,000 (Gain) loss on disposals of property, plant and equipment -334,071 - -334,071 - Share of (profit) loss from subsidiaries - - -3,048,169 1,909,594 (Increase) decrease in inventories -57,987,186 -22,896,292 -64,652,171 -29,565,983 (Increase) decrease in debtors and other current assets 35,815,815 23,117,780 33,838,915 18,718,541 Increase (decrease) in creditors and other current liabilities 101,292,652 -130,837,641 113,495,587 -124,441,753 Increase (decrease) in accrued income tax 887,713 -403,635 - - Net cash receipts (payments) from operating activities 157,521,409 -86,223,932 156,825,794 -90,660,250