NTERIM F/S AND CONSOLIDATED F/S OF Q2/1998
11 สิงหาคม 2541
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Notes to the financial statements and consolidated financial statements
- June 30, 1998 continued
The consolidation
1998 1997
(Baht'000) (Baht'000)
Property, plant and equipment, at cost
Land 3,572,980 3,394,895
Buildings 3,446,388 2,876,080
Leasehold rights and leasehold improvement 470,696 198,091
Store equipment 2,535,955 2,146,065
Office equipment and furniture and fixtures 610,646 504,275
Motor vehicles 61,541 59,202
Construction in progress 78,435 127,304
10,776,641 9,305,912
Less: Accumulated depreciation (2,064,233) (1,477,179)
Property, plant and equipment, net 8,712,408 7,828,733
The consolidation
1998 1997
Second Period of Second Period of
quarter six months quarter six months
(Baht'000) (Baht'000) (Baht'000) (Baht'000)
Depreciation and amortisation 163,217 333,849 146,317 281,581
Depreciation and amortisation are charged to the statements of income and consolidated
statements of income.
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Notes to the financial statements and consolidated financial statements
- June 30, 1998 continued
Deferred development rights, net
10. The balance is shown net of accumulated amortisation as follows :
The consolidation
1998 1997
(Baht'000) (Baht'000)
Accumulated amortisation 15,095 4,001
Pre-opening and start-up expenses, net
11. The balance is shown net of accumulated amortisation as follows :
The company only The consolidation
1998 1997 1998 1997
(Baht'000) (Baht'000) (Baht'000) (Baht'000)
Accumulated amortisation 258,249 201,216 260,579 201,218
Loans from bank
12. These represent loans from a foreign bank, equivalent to USD 15 million. The loans
bear interest at the Singapore Inter Bank Offer rate plus 0.425% and will be due for
repayment in August 1998. The company is required to comply with the terms and conditions
as specified in the loan agreement. There is a forward exchange contract to cover this loan.
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Notes to the financial statements and consolidated financial statements
- June 30, 1998 continued
Share capital
13. 1998 1997
(Baht'000) (Baht'000)
Authorized share capital :
240,000,000 shares of Baht 10 each 2,400,000 2,400,000
Issued and paid up share capital :
240,000,000 shares of Baht 10 each 2,400,000 2,400,000
Dividends
14. At the annual shareholders' meeting dated April 24,1998, it was unanimously resolved
that dividends for the year ended December 31, 1997 be paid at Baht 0.85 per share
totalling to Baht 204 million. These dividends were already paid in this quarter.
Earnings per share
15. Earnings per share is calculated based on the weighted average number of shares in
issue during the period.
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Notes to the financial statements and consolidated financial statements
- June 30, 1998 continued
Contingent liabilities and commitment
16.
(a) Bank guarantees
As at June 30, 1998, the banks have given guarantees on behalf of the company
and its subsidiaries as follows:
The company only The consolidation
(Baht'000) (Baht'000)
Electricity 33,731 35,058
Sales of liquor and cigarettes 2,090 2,120
Others 480 2,180
36,301 39,358
(b) Letter of awareness
As at June 30, 1998, the company has issued letters of awareness to a bank for a
bank overdraft facility of subsidiary companies amounting to Baht 70 million.
(c) Lease agreement
The company has entered into several land lease agreements with a subsidiary
company, several building area lease agreements and service agreements with external
lessors. In addition, the subsidiary companies have also entered into building area
lease agreements with external lessors. The future payments to which the company
and its subsidiaries are committed under these agreements are as follows :
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Notes to the financial statements and consolidated financial statements
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The company only The consolidation
(Baht'000) (Baht'000)
Due within 1 year 276,188 39,203
Due after 1 year but within 5 years 310,388 131,791
Due after 5 years 514,574 650,705
1,101,150 821,699
(d) Capital expenditure commitment
As at June 30, 1998, the company and its subsidiaries have capital expenditure
commitments in respect of construction contracts and the fixed assets acquisition as
follows :
The company only The consolidation
(Baht'000) (Baht'000)
Capital expenditure commitments 104,064 106,249
Financial instruments
17. The company's policy on risk management of liabilities in foreign currencies is to use
financial instruments purchased in financial markets. For hedging purposes, the company
has entered into forward exchange contracts to cover loan and purchase commitments in
foreign currencies. As at June 30, 1998, deferred loss on exchange rate arising under
these contracts amounted to Baht 4 million.
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Notes to the financial statements and consolidated financial statements
- June 30, 1998 continued
Bank facilities
18. As at June 30, 1998, the company has the following unutilised credit facilities
available with local banks and foreign banks :
The company only The consolidation
Currencies Amount Amount
(Unit : Million) (Unit : Million)
Local banks
- Bank overdrafts facilities Baht 95 135
- Loans facilities Baht 175 175
- Letter of credit facilities Baht 165 200
- Letter of guarantee facilities Baht 15 27
Foreign banks
- Loans facilities USD 35 35
The loan facilities from foreign banks are available through January 24, 2001.
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- June 30, 1998 continued
Segmental information by business activity
19. The consolidation The consolidation
for the second quarter ended June 30, 1998 for the period of six months ended June 30, 1998
Wholesale and Service Land Rental Elimination Total Wholesale and Service Land Rental Elimination Total
Retail Business Business Business Retail Business Business Business
(Million Baht) (Million Baht) (Million Baht) (Million Baht) (Million Baht) (Million Baht) (Million Baht) (Million Baht) (Million Baht) (Million Baht)
Sales and service income
- Unaffiliated customers 7,521 205 - - 7,726 15,228 391 - - 15,619
- Intercompany - - 68 (68) - - - 137 (137) -
7,521 205 68 (68) 7,726 15,228 391 137 (137) 15,619
Gross profit 601 40 - - 641 1,250 73 - - 1,323
Other income 203 388
Selling and administrative expenses (625) (1,273)
Interest expenses (8) (18)
Directors' remuneration (1) (1)
Income tax (70) (141)
Net income before share of loss from
an associated company 140 278
Share of loss from an associated company - -
Net income 140 278
Property, plant and equipment, net book
value as at June 30, 1998 - 5,527 395 2,790 - 8,712
Other assets 4,758
Total assets as at June 30, 1998 13,470
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- June 30, 1998 continued
Segmental information by business activity
The consolidation The consolidation
for the second quarter ended June 30, 1997 for the period of six months ended June 30, 1997
Wholesale and Service Land Rental Elimination Total Wholesale and Service Land Rental Elimination Total
Retail Business Business Business Retail Business Business Business
(Million Baht) (Million Baht) (Million Baht) (Million Baht) (Million Baht) (Million Baht) (Million Baht) (Million Baht) (Million Baht) (Million Baht)
Sales and service income
- Unaffiliated customers 7,663 146 - - 7,809 15,130 235 - - 15,365
- Intercompany - - 64 (64) - 240 - 122 (362) -
7,663 146 64 (64) 7,809 15,370 235 122 (362) 15,365
Gross profit 654 31 - - 685 1,410 48 - - 1,458
Other income 156 303
Selling and administrative expenses (565) (1,174)
Interest expenses (7) (14)
Directors' remuneration (1) (1)
Income tax (82) (191)
Net income before share of loss from
an associated company 186 381
Share of loss from an associated company (2) (8)
Net income 184 373
Property, plant and equipment, net book
value as at June 30, 1997 5,047 172 2,610 - 7,829
Other assets 4,471
Total assets as at June 30, 1997 12,300
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Notes to the financial statements and consolidated financial statements
- June 30, 1998 continued
The company and its subsidiary companies operate 3 major businesses as follows :
- Cash and carry wholesale business of merchandise and retail business of office supplies.
- Automotive service centers, automated car wash and gas stations
- Land investment and property leasing
Sales to unaffiliated customers , subsidiaries and affiliated companies are presented at market
price. However, the transfer prices for intercompany sales are established by agreements
between the company and its subsidiary companies which represent net book value due to a
business reorganisation in the first quarter of 1997.
Property, plant and equipment of each business are for its own operations. Other assets
mainly comprise cash in hand and at banks, inventories, amounts due from and loans to
affiliated companies.
Comparative figure
20. As a result of reclassifications of certain items of the interim financial statements
ended June 30, 1998, the comparative figures and the interim financial statements ended
March 31, 1998 have been amended accordingly.
Auditors' report page 1.