ANNUAL CONSOLIDATED FINANCIAL STATEMENTS
19 กุมภาพันธ์ 2542
AUDITOR'S REPORT
To the shareholders of Siam Makro Public Company Limited
I have audited the accompanying balance sheets of Siam Makro Public Company Limited
as at 31 December 1998 and 1997 and the related statements of income and retained
earnings, changes in shareholders equity and cash flows for the years then ended and the
consolidated balance sheets of Siam Makro Public Company Limited and its subsidiaries as
at 31 December 1998 and 1997 and the related consolidated statements of income and
retained earnings, changes in shareholders equity and cash flows for the years then ended.
These financial statements are the responsibility of the Companys management. My
responsibility is to express an opinion on these financial statements based on my audits.
I conducted my audits in accordance with generally accepted auditing standards in
Thailand. Those standards require that I plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial
statement presentation. I believe that my audits provide a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of Siam Makro Public Company Limited as at 31 December
1998 and 1997 and the results of its operations and its cash flows for the years then ended
and the consolidated financial position of Siam Makro Public Company Limited and its
subsidiaries as at 31 December 1998 and 1997 and the consolidated results of their
operations and their cash flows for the years then ended, in conformity with generally
accepted accounting principles in Thailand.
I draw attention to Note 19 which is marked "unaudited". Information regarding the Year
2000 issue as presented in this note has not been subjected to auditing procedures, and
accordingly, I express no opinion on it.
PRASAN CHUAPHANICH
Certified Public Accountant
(Thailand) No.3051
PricewaterhouseCoopers Audit and Business Advisory Services Ltd.
Bangkok
29 January 1999
Siam Makro Public Company Limited
Balance sheets and consolidated balance sheets as at 31 December 1998 and 1997
The company only The consolidation
Notes 1998 1997 1998 1997
(Baht) (Baht) (Baht) (Baht)
ASSETS
Current assets
Cash in hand and at banks 3,328,055,361 2,245,176,415 3,444,026,299 2,305,684,001
Short-term investments 2 180,000,000 124,339,818 180,000,000 124,339,818
Accounts receivable - trade 3 - - 4,712,445 -
Amounts due from subsidiary and
affiliated companies 4 167,113,138 521,358,816 817,269 5,533,077
Short-term loans to affiliated companies 4 163,100,000 464,800,000 - -
Inventories, net 5 2,094,630,878 2,398,930,299 2,272,169,709 2,632,747,668
Other current assets
VAT receivable - - 32,046,520 23,593,055
Purchase discount receivable 90,126,433 47,355,000 104,166,964 49,139,850
Prepayment 5,052,985 7,163,030 7,275,199 9,955,363
Other 33,084,801 63,868,208 35,566,798 83,843,595
Total current assets 6,061,163,596 5,872,991,586 6,080,781,203 5,234,836,427
Loans to a subsidiary company 4 1,178,400,000 1,178,400,000 - -
Investments in subsidiary and
associated companies 6 1,600,281,155 1,061,704,506 - -
Property, plant and
equipment, net 7 5,604,432,900 5,314,571,223 8,900,858,160 8,654,374,351
Other assets
Deferred development
rights, net 8 - - 35,161,765 46,272,471
Pre-opening and start-up 189,729,268
expenses, net 9 139,969,477 174,650,293 154,590,906 52,694,196
Deposits 4 288,235,271 309,382,346 32,339,916
TOTAL ASSETS 14,872,482,399 13,911,699,954 15,203,731,950 14,177,906,713
The notes to the financial statements on pages 8 to 20 form an integral part of these
financial statements.
Auditor's report page 1.
Siam Makro Public Company Limited Page 2
Balance sheets and consolidated balance sheets as at 31 December 1998 and 1997
The company only The consolidation
Notes 1998 1997 1998 1997
(Baht) (Baht) (Baht) (Baht)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Loans from bank - 506,700,000 - 506,700,000
Accounts payable - trade 5,516,654,550 5,230,077,486 5,749,637,963 5,417,367,638
Amounts due to subsidiary and
affiliated companies 4 55,897,152 72,005,904 59,804,661 67,137,211
Other current liabilities
Accounts payable - other 343,026,063 261,943,178 361,284,120 326,910,199
Accrued income tax 194,127,139 82,243,769 235,368,471 100,477,411
Accrued expenses 160,376,501 151,467,485 178,421,842 171,354,266
VAT payable 78,633,397 27,059,217 78,633,397 -
Forward exchange contract
payable 72,978,000 - 72,978,000 -
Other 76,361,535 82,831,063 83,191,848 85,877,417
Total current liabilities 6,498,054,337 6,414,328,102 6,819,320,302 6,675,824,142
Long term loan from bank 10 553,350,000 - 553,350,000 -
Other liabilities
Provision for retirement benefits 141,402,433 114,442,288 151,046,926 118,640,225
Other liability - - 339,093 512,782
TOTAL LIABILITIES 7,192,806,770 6,528,770,390 7,524,056,321 6,794,977,149
Shareholders' equity
Share capital 11 2,400,000,000 2,400,000,000 2,400,000,000 2,400,000,000
Share premium 3,290,152,068 3,290,152,068 3,290,152,068 3,290,152,068
Legal reserve 163,947,221 138,909,918 163,947,221 138,909,918
Retained earnings 1,825,576,340 1,553,867,578 1,825,576,340 1,553,867,578
TOTAL SHAREHOLDERS'
EQUITY 7,679,675,629 7,382,929,564 7,679,675,629 7,382,929,564
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 14,872,482,399 13,911,699,954 15,203,731,950 14,177,906,713
Director
Director .
Date 29 January 1999 .
Siam Makro Public Company Limited Page 3
Statements of income and consolidated statements of income
for the years ended 31 December 1998 and 1997
The company only The consolidation
Notes 1998 1997 1998 1997
(Baht) (Baht) (Baht) (Baht)
REVENUES
Sales 29,223,955,761 31,109,169,868 30,775,732,363 32,094,207,581
Other income
Interest income 302,127,093 258,771,961 210,150,701 178,884,962
Service income 444,015,163 393,984,961 456,167,676 402,572,985
Other 174,476,519 112,662,819 130,286,264 62,196,969
TOTAL REVENUES 30,144,574,536 31,874,589,609 31,572,337,004 32,737,862,497
EXPENSES
Cost of sales 26,898,183,340 28,602,917,374 28,162,889,448 29,376,077,332
Selling and administrative
expenses 2,559,556,875 2,528,046,309 2,608,624,422 2,502,983,377
Interest expenses 38,135,905 30,536,875 38,136,240 30,703,406
Directors' remuneration 1,440,000 1,440,000 1,440,000 1,440,000
TOTAL EXPENSES 29,497,316,120 31,162,940,558 30,811,090,110 31,911,204,115
Net income before tax 647,258,416 711,649,051 761,246,894 826,658,382
Income tax (205,089,000) (255,051,000) (260,500,829) (303,129,568)
Net income before share of
profit (loss) from subsidiary and
associated companies 442,169,416 456,598,051 500,746,065 523,528,814
Share of profit (loss) from
subsidiary and
associated companies 58,576,649 49,063,763 - (17,867,000)
NET INCOME FOR
THE YEAR 500,746,065 505,661,814 500,746,065 505,661,814
STATEMENTS OF
RETAINED EARNINGS
Retained earnings brought
forward 1,553,867,578 1,385,488,850 1,553,867,578 1,385,488,850
Net income for the year 500,746,065 505,661,814 500,746,065 505,661,814
Transfer to legal reserve 12 (25,037,303) (25,283,086) (25,037,303) (25,283,086)
Dividends 13 (204,000,000) (312,000,000) (204,000,000) (312,000,000)
Retained earnings carried
forward 1,825,576,340 1,553,867,578 1,825,576,340 1,553,867,578
EARNINGS PER
SHARE 14
Net income 2.09 2.11 2.09 2.11
The notes to the financial statements on pages 8 to 20 form an integral part of these financial statements.
Auditor's report page 1.
Siam Makro Public Company Limited Page 4
Statements of changes in shareholders' equity and consolidated
statements of changes in shareholders' equity
for the years ended 31 December 1998 and 1997
The company only The consolidation
1998 1997 1998 1997
(Baht) (Baht) (Baht) (Baht)
SHARE CAPITAL
Common share
Brought forward 2,400,000,000 2,400,000,000 2,400,000,000 2,400,000,000
Increase during the period - - - -
Carried forward 2,400,000,000 2,400,000,000 2,400,000,000 2,400,000,000
SHARE PREMIUM
Brought forward 3,290,152,068 3,290,152,068 3,290,152,068 3,290,152,068
Increase during the period - - - -
Carried forward 3,290,152,068 3,290,152,068 3,290,152,068 3,290,152,068
RETAINED EARNINGS
Appropriated
Legal reserve
Brought forward 138,909,918 113,626,832 138,909,918 113,626,832
Increase during the period 25,037,303 25,283,086 25,037,303 25,283,086
Carried forward 163,947,221 138,909,918 163,947,221 138,909,918
UNAPPROPRIATED
Brought forward 1,553,867,578 1,385,488,850 1,553,867,578 1,385,488,850
Increase during the period 500,746,065 505,661,814 500,746,065 505,661,814
Decrease during the period (229,037,303) (337,283,086) (229,037,303) (337,283,086)
Carried forward 1,825,576,340 1,553,867,578 1,825,576,340 1,553,867,578
Shareholders' equity 7,679,675,629 7,382,929,564 7,679,675,629 7,382,929,564
The notes to the financial statements on pages 8 to 20 form an integral part of these
financial statements.
Auditor's report page 1.
Siam Makro Public Company Limited Page 5
Statements of cash flows and consolidated statements of cash flows
for the years ended 31 December 1998 and 1997
The company only The consolidation
1998 1997 1998 1997
(Baht) (Baht) (Baht) (Baht)
Cash flows from operating activities :
Net income 500,746,065 505,661,814 500,746,065 505,661,814
Adjustments to reconcile net income
to net cash :
Depreciation and amortisation 654,660,064 570,265,655 731,009,129 616,642,835
Allowance for doubtful accounts 5,000,000 49,031,443 5,500,000 52,031,443
Provision for retirement benefits 26,960,145 17,971,896 32,406,701 22,169,833
Provision for warranty claim - - (173,689) 512,782
Gain on disposal of equipment (13,484,523) (5,607,269) (20,080,243) (5,761,219)
Share of loss (profit) from subsidiary
and associated companies (58,576,649) (49,063,763) - 17,867,000
Provision for loss on disposal
of equipment 6,703,512 20,599,000 10,454,739 20,599,000
Amortisation of deferred hedging
cost 17,680,863 15,920,666 17,680,863 15,920,666
Changes in current assets and liabilities :
Inventories 304,299,421 474,863,844 360,577,959 241,046,476
Amounts due from subsidiary and
affiliated companies 354,245,678 (495,811,270) 4,715,808 (3,032,390)
Accounts receivable - trade - - (4,712,445) -
VAT receivable - 62,050,692 (8,453,464) 38,457,637
Purchase discount receivable (42,771,433) (47,334,200) (55,027,114) (49,119,050)
Other current assets 27,893,452 11,865,023 45,456,961 (13,620,385)
Accounts payable - trade 286,577,064 (320,882,985) 332,270,325 (133,592,833)
Amounts due to subsidiary and
affiliated companies (16,108,753) (1,600,629) (7,332,984) (6,469,322)
Accounts payable - other 81,082,886 (55,043,552) 34,373,921 9,923,469
Accrued income tax 111,883,370 (45,533,951) 134,891,060 (35,681,367)
Accrued expenses 8,909,015 28,027,840 7,067,576 45,275,807
VAT Payable 51,574,179 - 78,633,397 -
Other current liabilities (13,173,040) 22,562,402 (13,140,308) (1,990,900)
Net cash flows provided by
operating activities 2,294,101,316 757,942,656 2,186,864,257 1,336,841,296
The notes to the financial statements on pages 8 to 20 form an integral part of these
financial statements.
Auditor's report page 1.
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