FINANCIAL STATEMENTS AND ACCOUNTANTS' REVIEW REPORT BERLI JUCKER PUBLIC COMPANY LIMITED AND SUBSIDIARIES FIRST QUARTER ENDED MARCH 31, 1998 AND 1997 Accountants Review Report To the Shareholders of Berli Jucker Public Company Limited: We have made a review of the consolidated balance sheets of Berli Jucker Public Company Limited and subsidiaries as at March 31, 1998 and 1997, and the related consolidated statements of income, changes in shareholders equity, retained earnings and cash flows for the three-month periods then ended, and the separate financial statements of Berli Jucker Public Company Limited for the same periods, 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 taken as a whole. Accordingly, we do not express such an opinion. We draw attention to Note 1 to the financial statements. The operations of the Company have been affected and will continue to be affected for the foreseeable future by the economic conditions in Thailand and the Asia Pacific Region in general. The ultimate effect that these uncertainties will have on the financial statements for the three-month period ended March 31, 1998 cannot presently be determined. The reviews of the financial statements of certain consolidated subsidiary and associated companies for the three-month periods ended March 31, 1998 and 1997 were not complete as at the respective reporting dates. The total assets and revenues of the subsidiaries concerned and the share of profits less losses of subsidiary and associated companies concerned are immaterial to the financial statements. Our review herein, insofar as it is related to the amounts included in respect of these subsidiary and associated companies is based solely upon the representation of management. Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements for them to be in conformity with generally accepted accounting principles. Nirand Lilamethwat Certified Public Accountant Peat Marwick Suthee Limited Bangkok, May 13, 1998 BERLI JUCKER PUBLIC COMPANY LIMITED AND SUBSIDIARIES BALANCE SHEETS AS AT MARCH 31, 1998 AND 1997 (UNAUDITED) (Amounts in Thousands of Baht) Consolidated Company ASSETS 1998 1997 1998 1997 CURRENT ASSETS Cash on hand and at banks 183,780 466,470 84,150 217,362 Short-term investments Deposits with financial institutions 170,712 165,629 170,000 - Others - 33,560 - 33,560 Accounts receivable 3,031,875 2,746,066 1,967,264 2,034,322 Less: Allowance for doubtful accounts (172,145) (136,181) (147,880) (118,046) Accounts receivable - net (Notes 4 and 5) 2,859,730 2,609,885 1,819,384 1,916,276 Short-term loans and advances to related parties (Note 5) 583,622 10,562 655,887 221,846 Lease receivable from a related party current portion (Notes 4 and 5) - - 36,000 86,000 Inventories (Note 4) 1,897,555 1,659,017 1,038,764 978,598 Other current assets Deferred income tax - current (Note 4) 107,614 121,051 109,033 99,186 Others 260,406 252,723 156,006 127,788 Total Current Assets 6,063,419 5,318,897 4,069,224 3,680,616 LEASE RECEIVABLE FROM A RELATED PARTY (Notes 4 and 5) - - 58,500 94,500 INVESTMENTS AND LOANS Loans to other companies 3,850 5,650 - - Investments in related parties (Notes 2, 4 and 6) 165,123 87,622 3,549,475 3,101,069 Investments in other companies (Notes 2, 4 and 6) 200,266 149,662 200,216 149,612 PROPERTY, PLANT AND EQUIPMENT - NET (Note 4) 6,796,125 6,107,432 855,456 908,485 OTHER ASSETS Terminated currency swap receivable 455,430 - 455,430 - Property foreclosed 35,689 33,545 - - Deferred income tax (Note 4) - - 98,351 54,600 Others 45,581 50,574 9,338 8,439 Total Assets 13,765,483 11,753,382 9,295,990 7,997,321 See notes to financial statements BERLI JUCKER PUBLIC COMPANY LIMITED AND SUBSIDIARIES BALANCE SHEETS AS AT MARCH 31, 1998 AND 1997 (UNAUDITED) (Amounts in Thousands of Baht) Consolidated Company LIABILITIES AND SHAREHOLDERS' EQUITY 1998 1997 1998 1997 CURRENT LIABILITIES Bank overdrafts and loans from financial institutions 491,522 407,843 118,894 282,659 Accounts and notes payable 1,673,469 885,273 604,297 422,693 Accounts payable - related parties (Note 5) - - 494,948 399,449 Current portion of long-term liabilities 1,878,816 775,435 1,466,910 297,372 Short-term loans and advances from related parties (Note 5) 28,254 - 12,542 30,842 Other current liabilities Accrued expenses 642,863 911,533 345,596 492,878 Others 415,648 212,756 180,337 85,220 Total Current Liabilities 5,130,572 3,192,840 3,223,524 2,011,113 LOANS FROM DIRECTORS AND EMPLOYEES 9,722 8,437 7,376 6,077 LONG-TERM LIABILITIES 2,712,508 2,545,470 2,037,207 2,025,843 OTHER LIABILITIES Long-term lease deferred income (Note 4) 127,213 130,197 127,213 130,197 Deferred income tax - non-current (Note 4) 409,955 457,851 - - Staff retirement benefits (Note 4) 204,909 41,000 120,839 41,000 Others (Note 6) 15,903 17,374 47,202 41,078 Total Liabilities 8,610,782 6,393,169 5,563,361 4,255,308 MINORITY INTERESTS 1,422,072 1,618,200 - - SHAREHOLDERS' EQUITY Share capital Authorized share capital 57,750,000 ordinary shares, Baht 10 par value 577,500 577,500 577,500 577,500 Issued and fully paid-up share capital 57,750,000 ordinary shares 577,500 577,500 577,500 577,500 Paid-in capital Premium on share capital 733,580 733,580 733,580 733,580 Donated surplus 36,868 36,868 36,868 36,868 Retained earnings Appropriated Legal reserve 116,558 116,038 57,750 57,750 Reserve for business expansion 87,401 87,401 85,000 85,000 Unappropriated 2,187,047 2,193,512 2,248,256 2,254,201 Loss from translation of foreign currency financial statements (Note 4) (6,325) (2,886) (6,325) (2,886) Total Shareholders' Equity 3,732,629 3,742,013 3,732,629 3,742,013 Total Liabilities and Shareholders' Equity 13,765,483 11,753,382 9,295,990 7,997,321 See notes to financial statements BERLI JUCKER PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF INCOME FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 1998 AND 1997 (UNAUDITED) (Amounts in Thousands of Baht Consolidated Company Except Earnings per Share) 1998 1997 1998 1997 REVENUES Sales (Note 4) 2,835,254 2,506,342 1,616,731 1,665,650 Other income Share of profits less losses of subsidiary and associated companies (Notes 2 and 4) 57,300 (4,102) 170,732 115,318 Interest income (Note 5) 11,729 12,702 26,556 18,180 Others 20,327 16,550 36,025 25,921 Total Revenues 2,924,610 2,531,492 1,850,044 1,825,069 EXPENSES Cost of sales (Note 5) 2,111,759 1,738,412 1,283,739 1,283,856 Selling and administrative expenses 382,437 437,059 245,746 295,850 Interest expense (Note 5) 89,075 86,164 64,665 67,028 Loss (gain) on foreign exchange (Note 4) 95,973 (37,370) 125,139 7,294 Directors' remuneration 469 596 319 356 Other expenses Currency swap cost 42,164 10,867 37,997 - Total Expenses 2,721,877 2,235,728 1,757,605 1,654,384 Net income before income tax 202,733 295,764 92,439 170,685 Income tax (Note 4) 33,202 86,026 (23,596) 16,815 Net income before minority interests 169,531 209,738 116,035 153,870 Less : Minority interests in net income (53,496) (55,868) - - Net income 116,035 153,870 116,035 153,870 Earnings per share (Baht) (Note 4) 2.01 2.66 2.01 2.66 Exceptional item : Foreign exchange loss (gain) (Note 4) Foreign exchange loss (gain) - company 125,139 7,294 125,139 7,294 - related parties (29,166) (44,664) (23,113) (42,302) Foreign exchange loss (gain) before income tax 95,973 (37,370) 102,026 (35,008) Income tax (42,746) (2,093) (37,542) (2,188) Minority interests 11,257 2,267 - - Net foreign exchange loss (gain) 64,484 (37,196) 64,484 (37,196) See notes to financial statements BERLI JUCKER PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 1998 AND 1997 (UNAUDITED) (Amounts in Thousands of Baht) Consolidated Company 1998 1997 1998 1997 Share capital Ordinary shares Beginning balance 577,500 577,500 577,500 577,500 Increase in this period - - - - Ending balance 577,500 577,500 577,500 577,500 Paid-in capital Premium on share capital Beginning balance 733,580 733,580 733,580 733,580 Increase in this period - - - - Ending balance 733,580 733,580 733,580 733,580 Donated surplus Beginning balance 36,868 36,868 36,868 36,868 Increase in this period - - - - Ending balance 36,868 36,868 36,868 36,868 Retained earnings Appropriated Legal reserve Beginning balance 116,038 116,038 57,750 57,750 Increase in this period 520 - - - Ending balance 116,558 116,038 57,750 57,750 Reserve for business expansion Beginning balance 87,401 87,401 85,000 85,000 Increase in this period - - - - Ending balance 87,401 87,401 85,000 85,000 Unappropriated Beginning balance 2,021,021 2,074,944 2,081,710 2,135,633 Increase in this period 116,035 153,870 116,035 153,870 Decrease in this period 49,991 (35,302) 50,511 (35,302) Ending balance 2,187,047 2,193,512 2,248,256 2,254,201 Loss from translation of foreign currency financial statements Beginning balance (6,325) (111) (6,325) (111) Increase in this period - (2,775) - (2,775) Ending balance (6,325) (2,886) (6,325) (2,886) Total Shareholders' Equity 3,732,629 3,742,013 3,732,629 3,742,013 See notes to financial statements BERLI JUCKER PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF RETAINED EARNINGS FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 1998 AND 1997 (UNAUDITED) (Amounts in Thousands of Baht) Consolidated Company 1998 1997 1998 1997 Unappropriated retained earnings Beginning balance 2,021,021 2,074,944 2,081,710 2,135,633 Less appropriations of earnings: Legal reserve (520) - - - Cost of investment in excess of net assets of subsidiary and associated companies eliminated against retained earnings 50,511 (35,302) 50,511 (35,302) Net income for the period 116,035 153,870 116,035 153,870 Unappropriated retained earnings at end of period 2,187,047 2,193,512 2,248,256 2,254,201 Appropriated retained earnings Legal reserve 116,558 116,038 57,750 57,750 Reserve for business expansion 87,401 87,401 85,000 85,000 Appropriated retained earnings at end of period 203,959 203,439 142,750 142,750 Retained earnings at end of period 2,391,006 2,396,951 2,391,006 2,396,951 See notes to financial statements (More)