ONSOLIDATED FINANCIAL STATEMENTS QUARTER 1/1999
10 พฤษภาคม 2542
Unaudited
Reviewed
Siam Makro Public Company Limited Page 19
Notes to the financial statements and consolidated financial statements
31 March 1999 continued
Segmental information by business
activity
The consolidation
15. for the three-month period ended 31 March 1999
Wholesale Land
and Retail Service Rental Elimi- Total
Business Business Business nation
(Million (Million (Million (Million (Million
Baht) Baht) Baht) Baht) Baht)
Sales and service
income
- Unaffiliated customers 7,378 223 - - 7,601
- Intercompany 1 - 70 (71) -
7,379 223 70 (71) 7,601
Gross profit 600 44 - - 644
Other income 188
Selling and administrative
expenses (628)
Interest expenses (5)
Directors' remuneration (1)
Income tax (63)
Net income 135
Property, plant and equipment,
Net book value as at
31 March 1999 5,715 384 2,790 - 8,889
Other assets 5,059
Total assets at 31 March 1999 13,948
The consolidation
for the three-month period ended 31 March 1998
Wholesale Land
and Retail Service Rental Elimi - Total
Business Business Business nation
(Million (Million (Million (Million (Million
Baht) Baht) Baht) Baht) Baht)
Sales and service income
- Unaffiliated customers 7,708 186 - - 7,894
- Intercompany - - 68 (68) -
7,708 186 68 (68) 7,894
Gross profit 649 34 - - 683
Other income 184
Selling and administrative expenses (648)
Interest expenses (9)
Directors' remuneration (1)
Income tax (71)
Net income 138
Property, plant and equipment,
Net book value as at
31 March 1998 5,359 400 2,790 - 8,549
Other assets 5,178
Total assets at 31 March 1998 13,727
The company and its subsidiary companies operate 3 major businesses as
follows :
- Cash and carry trade center of food and non food products and retail
business of office supplies.
- Automotive service centers and gas stations.
- Land investment and property leasing.
Sales to unaffiliated customers, subsidiary and affiliated companies are
presented at market price.
Property, plant and equipment of each business are for its own operations.
Otherassets mainly comprise cash in hand and at banks, inventories, amounts
due from affiliated companies, pre-openning and start-up expenses, deposits
and other assets.
Unaudited
Reviewed
Siam Makro Public Company Limited Page 20
Notes to the financial statements and consolidated financial statements
31 March 1999 continued
Year 2000 issues (unaudited and not covered by the auditors report)
16. Siam Makro Public Company Limited and its subsidiary
companies commenced their plan to replace and upgrade all major
computer systems at the end of 1997. This aims to increase the
efficiency and ability to cope with business growth. The upgrades
for the finance and accounting systems have already been completed
and passed for year 2000 compliance test. The company and its
subsidiary companies are now in the process of upgrading the
business operating systems in respect of purchasing, selling, goods
receiving and inventory management, which are expected to be
completed and ready for year 2000 compliance test within 1999.
The capital expenditure budget of the company is estimated at Baht
120 million out of which Baht 40.8 million has been capitalized to
fixed assets as at 31 March 1999. The total capital expenditure of
the company and its subsidiary companies is estimated at Baht 168
million.
The company and its subsidiary companies expect that such
upgrades should remove any year 2000 problems as the new
equipment and applications are year 2000 compliant, as certified by
the vendors. The company expects that the year 2000 compliance
test will be finished within the second quarter of 1999 and the
subsidiary companies are expected to finished testing within the
fourth quarter of 1999.
In addition, the company and its subsidiary companies are
proactively addressing the issue in respect of other companies, with
which the company and its subsidiary companies are doing business,
in order to ensure year 2000 compliance. The company is in the
process of examining the readiness for year 2000 compliance of
such companies. This information will be used for preparing an
assessment of the impact to the company and its subsidiary
companies and also for developing a plan to minimize the business
risks. This plan is expected to be finished in June 1999.
Comparative figures
17. As a result of reclassifications of certain items in the financial
statements for the three-months period ended 31 March 1999, the
comparative figures have been amended accordingly.
Auditors report page 1.