INTERIM F/S AND CONSOLIDATED F/S OF Q2/1998
11 August 1998
Auditors' report to the shareholders of
Siam Makro Public Company Limited
We have performed a review of the balance sheets of Siam Makro Public Company
Limited as at June 30, 1998 and 1997, and the related statements of income, retained
earnings and statements of change in shareholders' equity for the second quarter and the
period of six months then ended, and the consolidated balance sheets of Siam Makro
Public Company Limited and its subsidiaries as at June 30, 1998 and 1997, and the
related consolidated statements of income, retained earnings and consolidated statements
of change in shareholders' equity for the second quarter and the period of six months
then ended, in accordance with standards established by the Institute of Certified
Accountants and Auditors of Thailand.
A review of interim financial information consists principally of obtaining an understanding
of the system for the preparation of interim financial information, applying analytical
review procedures to financial data, and making inquiries of persons responsible for
financial and accounting matters. It 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 and the consolidated financial
statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should be
made to the aforementioned financial statements and consolidated financial statements
for them to be in conformity with generally accepted accounting principles.
PRASAN CHUAPHANICH
Certified Public Accountant
(Thailand) No. 3051
PRICEWATERHOUSECOOPERS (THAILAND) CO., LTD.
July 24, 1998
Siam Makro Public Company Limited
Balance sheets and consolidated balance sheets as at June 30, 1998 and 1997
The company only The consolidation
Notes 1998 1997 1998 1997
(Baht'000) (Baht'000) (Baht'000) (Baht'000)
ASSETS
Current assets
Cash in hand and at banks 3 1,377,911 1,037,507 1,463,859 1,329,445
Short-term investments 4
Bill of exchange 340,000 - 340,000 -
Other 160,000 230,000 160,000 241,000
Accounts receivable-trade 5 3,817 1,524 5,639 1,862
Amounts due from and loans
to related parties 6 474,613 978,185 6,791 27,571
Inventories, net 7 2,166,676 2,092,912 2,365,132 2,321,950
Other current assets
VAT receivable - 24,863 41,705 59,855
Purchase discount receivable 52,500 57,590 59,531 61,429
Advance payment on land - - - 90,000
Other 43,486 57,177 64,161 75,632
Total current assets 4,619,003 4,479,758 4,506,818 4,208,744
Loans to a subsidiary
company 6 1,178,400 1,178,400 - -
Investments in subsidiary and
associated companies 8 1,561,778 1,061,839 - 9,402
Property, plant and
equipment, net 9 5,396,609 4,937,795 8,712,408 7,828,733
Other assets
Deferred development
rights, net 10 - - 40,797 51,722
Pre-opening and start-up
expenses, net 11 158,140 167,493 174,629 171,781
Deposits 6 291,806 270,214 35,530 30,112
TOTAL ASSETS 13,205,736 12,095,499 13,470,182 12,300,494
The notes on pages 7 to 25 form an integral part of the financial statements
and consolidated financial statements.
Auditors' report page 1.
Unaudited
Reviewed
Page 2
The company only The consolidation
Notes 1998 1997 1998 1997
(Baht'000) (Baht'000) (Baht'000) (Baht'000)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Loans from bank 12 506,700 396,900 506,700 396,900
Accounts payable-trade 4,598,979 3,789,407 4,789,123 3,954,995
Current portion of long-term loans - 16,663 - 16,663
Amounts due to related parties 6 59,368 77,217 59,926 64,781
Other current liabilities
VAT payable 58,776 - 58,776 -
Accounts payable - other 81,713 132,514 95,058 143,465
Accrued income tax 111,451 167,757 138,623 191,126
Accrued expenses 161,082 125,230 184,465 132,840
Other 40,300 39,646 42,326 42,482
Total current liabilities 5,618,369 4,745,334 5,874,997 4,943,252
Other liabilities
Provision for retirement benefits 130,829 99,920 137,541 106,997
Other - - 1,106 -
TOTAL LIABILITIES 5,749,198 4,845,254 6,013,644 5,050,249
Shareholders' equity
Share capital 13 2,400,000 2,400,000 2,400,000 2,400,000
Share premium 3,290,152 3,290,152 3,290,152 3,290,152
Legal reserve 138,910 113,627 138,910 113,627
Retained earnings 1,627,476 1,446,466 1,627,476 1,446,466
TOTAL SHAREHOLDERS' EQUITY 7,456,538 7,250,245 7,456,538 7,250,245
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 13,205,736 12,095,499 13,470,182 12,300,494
Director . Director .
Date July 24, 1998
Unaudited
Reviewed
Siam Makro Public Company Limited Page 3
Statements of income
for the second quarter and the period of six months ended June 30, 1998 and 1997
The company only
Notes 1998 1997
Second Period of Second Period of
quarter six months quarter six months
(Baht'000) (Baht'000) (Baht'000) (Baht'000)
REVENUES
Sales 7,343,010 14,845,577 7,489,686 15,135,748
Other income
Interest income 88,407 172,521 53,367 123,762
Service income 116,695 209,616 102,896 181,722
Other 33,282 75,971 26,875 52,445
TOTAL REVENUES 7,581,394 15,303,685 7,672,824 15,493,677
EXPENSES
Cost of sales 6,775,952 13,664,608 6,868,727 13,767,570
Selling and administrative
expenses 617,893 1,248,704 574,726 1,220,146
Interest expenses 8,539 17,618 6,941 14,101
Directors' remuneration 360 720 360 720
TOTAL EXPENSES 7,402,744 14,931,650 7,450,754 15,002,537
Net income before tax 178,650 372,035 222,070 491,140
Income tax (57,000) (114,500) (69,508) (167,361)
Net income before share of profit from
subsidiary and associated companies 121,650 257,535 152,562 323,779
Share of profit from subsidiary
and associated companies 17,975 20,073 31,905 49,198
NET INCOME FOR THE PERIOD 139,625 277,608 184,467 372,977
STATEMENTS OF RETAINED EARNINGS
Retained earnings brought forward 1,691,851 1,553,868 1,573,999 1,385,489
Net income for the period 139,625 277,608 184,467 372,977
Dividends 14 (204,000) (204,000) (312,000) (312,000)
Retained earnings carried forward 1,627,476 1,627,476 1,446,466 1,446,466
EARNINGS PER SHARE (BAHT) 15
Net income 0.58 1.16 0.77 1.55
The notes on pages 7 to 25 form an integral part of the financial statements
and consolidated financial statements.
Auditors' report page 1.
Unaudited
Reviewed
Siam Makro Public Company Limited Page 4
Consolidated statements of income
for the second quarter and the period of six months ended June 30, 1998 and 1997
The consolidation
Notes 1998 1997
Second Period of Second Period of
quarter six months quarter six months
(Baht'000) (Baht'000) (Baht'000) (Baht'000)
REVENUES
Sales 7,725,519 15,619,389 7,808,972 15,365,494
Other income
Interest income 63,046 121,779 38,178 88,950
Service income 120,339 215,972 105,304 184,814
Other 20,083 50,115 12,057 29,466
TOTAL REVENUES 7,928,987 16,007,255 7,964,511 15,668,724
EXPENSES
Cost of sales 7,085,012 14,296,041 7,123,951 13,907,266
Selling and administrative
expenses 624,860 1,273,596 565,092 1,174,298
Interest expenses 8,384 17,618 6,941 14,268
Directors' remuneration 360 720 360 720
TOTAL EXPENSES 7,718,616 15,587,975 7,696,344 15,096,552
Net income before tax 210,371 419,280 268,167 572,172
Income tax (70,746) (141,672) (82,000) (190,730)
Net income before share of loss
from an associated company 139,625 277,608 186,167 381,442
Share of loss from an associated
company - - (1,700) (8,465)
NET INCOME FOR THE PERIOD 139,625 277,608 184,467 372,977
STATEMENTS OF RETAINED EARNINGS
Retained earnings brought forward 1,691,851 1,553,868 1,573,999 1,385,489
Net income for the period 139,625 277,608 184,467 372,977
Dividends 14 (204,000) (204,000) (312,000) (312,000)
Retained earnings carried forward 1,627,476 1,627,476 1,446,466 1,446,466
EARNINGS PER SHARE (BAHT) 15
Net income 0.58 1.16 0.77 1.55
The notes on pages 7 to 25 form an integral part of the financial statements
and consolidated financial statements.
Auditors' report page 1.
Unaudited Unaudited
Reviewed Reviewed
Siam Makro Public Company Limited Page 5
Statements of change in shareholders' equity
for the second quarter and the period of six months ended June 30, 1998 and 1997
The company only
1998 1997
Second Period of Second Period of
quarter six months quarter six months
(Baht'000) (Baht'000) (Baht'000) (Baht'000)
SHARE CAPITAL
Common shares
Brought forward 2,400,000 2,400,000 2,400,000 2,400,000
Increase during the period - - - -
Carried forward 2,400,000 2,400,000 2,400,000 2,400,000
SHARE PREMIUM
Brought forward 3,290,152 3,290,152 3,290,152 3,290,152
Increase during the period - - - -
Carried forward 3,290,152 3,290,152 3,290,152 3,290,152
RETAINED EARNINGS
Appropriated
Legal reserve
Brought forward 138,910 138,910 113,627 113,627
Increase during the period - - - -
Carried forward 138,910 138,910 113,627 113,627
Unappropriated
Brought forward 1,691,851 1,553,868 1,573,999 1,385,489
Increase during the period 139,625 277,608 184,467 372,977
Decrease during the period (204,000) (204,000) (312,000) (312,000)
Carried forward 1,627,476 1,627,476 1,446,466 1,446,466
Shareholders' equity 7,456,538 7,456,538 7,250,245 7,250,245
The notes on pages 7 to 25 form an integral part of the financial statements
and consolidated financial statements.
Auditors' report page 1.
Unaudited
Reviewed
Siam Makro Public Company Limited Page 6
Consolidated statements of change in shareholders' equity
for the second quarter and the period of six months ended June 30, 1998 and 1997
The consolidation
1998 1997
Second Period of Second Period of
quarter six months quarter six months
(Baht'000) (Baht'000) (Baht'000) (Baht'000)
SHARE CAPITAL
Common shares
Brought forward 2,400,000 2,400,000 2,400,000 2,400,000
Increase during the period - - - -
Carried forward 2,400,000 2,400,000 2,400,000 2,400,000
SHARE PREMIUM
Brought forward 3,290,152 3,290,152 3,290,152 3,290,152
Increase during the period - - - -
Carried forward 3,290,152 3,290,152 3,290,152 3,290,152
RETAINED EARNINGS
Appropriated
Legal reserve
Brought forward 138,910 138,910 113,627 113,627
Increase during the period - - - -
Carried forward 138,910 138,910 113,627 113,627
Unappropriated
Brought forward 1,691,851 1,553,868 1,573,999 1,385,489
Increase during the period 139,625 277,608 184,467 372,977
Decrease during the period (204,000) (204,000) (312,000) (312,000)
Carried forward 1,627,476 1,627,476 1,446,466 1,446,466
Shareholders' equity 7,456,538 7,456,538 7,250,245 7,250,245
The notes on pages 7 to 25 form an integral part of the financial statements
and consolidated financial statements.
Auditors' report page 1.
Unaudited
Reviewed
Siam Makro Public Company Limited Page 7
Notes to the financial statements and consolidated financial statements
- June 30, 1998
Basis for consolidation
1. The consolidated financial statements include the financial statements of Siam Makro
Public Company Limited and its subsidiaries as follows :
% of interest
Makro Properties Limited 99.99
Makro Auto Care Company Limited 99.99
Makro Office Centre Company Limited 99.99
Significant intercompany transactions have been eliminated in the consolidated financial
statements. The minority interest is immaterial and not, therefore, shown separately in the
consolidated financial statements.
Principal accounting policies
2. A summary of the significant accounting policies of the company, which have been
applied consistently, is set out below.
(a) Depreciation and amortisation
Depreciation is calculated so as to write off the cost of the assets on a straight-line basis
over the expected useful economic lives of the assets which range from 5 - 20 years.
Leasehold rights are deferred and amortised by the straight-line method over the
period of agreements which range from 6 - 26 years.
Pre-opening and start-up expenses are deferred and amortised by the straight-line
method over a period of 5 years.
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