FINANCIAL STATEMENTS AND ACCOUNTANTS' REVIEW REPORT BERLI JUCKER PUBLIC COMPANY LIMITED AND SUBSIDIARIES FIRST QUARTER ENDED MARCH 31, 1999 AND 1998 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, 1999 and 1998, and the related consolidated statements of income, changes in shareholders' equity, retained earnings and cash flows for the three- month periods then ended. We have also made a review of the Company only financial statements of Berli Jucker Public Company Limited for the same periods. Our reviews were made 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. 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 in Thailand. We draw attention to Note 1 to the financial statements. The operations of Berli Jucker Public Company Limited and subsidiaries since 1997 have been affected and may continue to be influenced 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 cannot presently be determined. Nirand Lilamethwat Certified Public Accountant Registration Number 2316 KPMG Audit (Thailand) Limited Bangkok, May 12, 1999 BERLI JUCKER PUBLIC COMPANY LIMITED AND SUBSIDIARIES BALANCE SHEETS AS AT MARCH 31, 1999 AND 1998 (UNAUDITED) (Amounts in Thousands of Baht) Consolidated Company ASSETS 1999 1998 1999 1998 CURRENT ASSETS Cash on hand and at banks 1,856,967 183,780 1,377,318 84,150 Short-term investments Deposits with financial institutions - 170,712 - 170,000 Others 20 - 20 - Accounts receivable 3,279,612 3,031,875 1,715,823 1,967,264 Less: Allowance for doubtful accounts (176,538) (172,145) (145,545) (147,880) Accounts receivable - net (Notes 4, 5 and 6) 3,103,074 2,859,730 1,570,278 1,819,384 Short-term loans and advances to related parties - net (Note 5) 117,244 583,622 800,518 655,887 Lease receivable from a related party current portion (Notes 4 and 5) - - 36,000 36,000 Inventories (Note 4) 1,463,871 1,897,555 555,291 1,038,764 Other current assets Deferred income tax - current (Note 4) 135,344 107,614 124,969 109,033 Accrued income 68,552 2,974 89,345 2,974 Others 82,955 257,432 60,241 153,032 Total Current Assets 6,828,027 6,063,419 4,613,980 4,069,224 LEASE RECEIVABLE FROM A RELATED PARTY (Notes 4 and 5) - - 22,500 58,500 INVESTMENTS AND LOANS Loans to other companies - 3,850 - - Investments in related parties (Notes 2, 4 and 7) 71,157 165,123 5,059,278 3,549,475 Investments in other companies (Notes 2, 4 and 7) 201,116 200,266 201,066 200,216 PROPERTY, PLANT AND EQUIPMENT - NET (Note 4) 7,237,949 6,796,125 824,998 855,456 OTHER ASSETS Terminated currency swap receivable 455,430 455,430 455,430 455,430 Deferred income tax (Note 4) - - 110,115 98,351 Others 113,222 81,270 6,992 9,338 Total Assets 14,906,901 13,765,483 11,294,359 9,295,990 See notes to financial statements BERLI JUCKER PUBLIC COMPANY LIMITED AND SUBSIDIARIES BALANCE SHEETS AS AT MARCH 31, 1999 AND 1998 (UNAUDITED) (Amounts in Thousands of Baht) Consolidated Company LIABILITIES AND SHAREHOLDERS' EQUITY 1999 1998 1999 1998 CURRENT LIABILITIES Bank overdrafts and loans from financial institutions 692,078 491,522 90,862 118,894 Accounts and notes payable 1,495,550 1,673,469 493,081 604,297 Accounts payable - related parties (Note 5) - - 339,281 494,948 Current portion of long-term liabilities 129,238 1,878,816 - 1,466,910 Short-term loans and advances from related parties (Note 5) 17,241 28,254 22,275 12,542 Other current liabilities Accrued expenses 655,157 642,863 318,735 345,596 Others 283,440 415,648 93,370 180,337 Total Current Liabilities 3,272,704 5,130,572 1,357,604 3,223,524 LOANS FROM DIRECTORS AND EMPLOYEES 6,997 9,722 6,913 7,376 LONG-TERM LIABILITIES 2,585,751 2,712,508 1,940,846 2,037,207 OTHER LIABILITIES Long-term lease deferred income (Note 4) 121,604 127,213 121,604 127,213 Deferred income tax - non-current (Note 4) 314,549 409,955 - - Staff retirement benefits (Note 4) 227,375 204,909 106,299 120,839 Others (Note 7) 241,060 15,903 76,177 47,202 Total Liabilities 6,770,040 8,610,782 3,609,443 5,563,361 MINORITY INTERESTS 451,945 1,422,072 - - SHAREHOLDERS' EQUITY Share capital (Note 8) Authorized share capital 158,812,500 ordinary shares in 1999 and 57,750,000 ordinary shares in 1998, Baht 10 par value 1,588,125 577,500 1,588,125 577,500 Issued and fully paid-up share capital 158,812,500 ordinary shares in 1999 and 57,750,000 ordinary shares in 1998 1,588,125 577,500 1,588,125 577,500 Paid-in capital Premium on share capital 3,751,380 733,580 3,751,380 733,580 Donated surplus 36,868 36,868 36,868 36,868 Retained earnings Appropriated Legal reserve 116,873 116,558 57,750 57,750 Reserve for business expansion 87,401 87,401 85,000 85,000 Unappropriated 2,211,044 2,187,047 2,272,568 2,248,256 Loss from translation of foreign currency financial statements (Note 4) (106,775) (6,325) (106,775) (6,325) Total Shareholders' Equity 7,684,916 3,732,629 7,684,916 3,732,629 Total Liabilities and Shareholders' Equity 14,906,901 13,765,483 11,294,359 9,295,990 See notes to financial statements BERLI JUCKER PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF INCOME FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 1999 AND 1998 (UNAUDITED) (Amounts in Thousands of Baht Consolidated Company Except Basic Earnings per Share) 1999 1998 1999 1998 REVENUES (Notes 4 and 5) Sales 2,738,772 2,835,254 1,401,079 1,616,731 Other income Share of profits less losses of subsidiary and associated companies (Note 2) 4,135 57,300 123,674 170,732 Interest income 23,452 11,729 39,741 26,556 Other financing income (Note 9) 10,348 - 10,348 - Gain (loss) on foreign exchange 2,863 (95,973) 344 (125,139) Others 10,431 20,327 49,791 36,025 Total Revenues 2,790,001 2,828,637 1,624,977 1,724,905 EXPENSES Cost of sales (Note 5) 1,973,116 2,111,759 1,090,286 1,283,739 Selling and administrative expenses 440,973 382,437 256,988 245,746 Interest expense (Note 5) 68,635 89,075 43,343 64,665 Directors' remuneration 1,094 469 944 319 Other expenses Currency swap cost 32,910 42,164 32,239 37,997 Total Expenses 2,516,728 2,625,904 1,423,800 1,632,466 Net income before income tax 273,273 202,733 201,177 92,439 Income tax (Note 4) 78,969 33,202 12,099 (23,596) Net income before minority interests 194,304 169,531 189,078 116,035 Less : Minority interests in net income (5,226) (53,496) - - Net income 189,078 116,035 189,078 116,035 Basic earnings per share (Baht) (Note 4) 1.19 2.01 1.19 2.01 Exceptional item : Foreign exchange gain (loss) (Note 4) Foreign exchange gain (loss) - company 344 (125,139) 344 (125,139) - related parties 2,519 29,166 1,025 23,113 Foreign exchange gain (loss) before income tax 2,863 (95,973) 1,369 (102,026) Income tax (1,673) 42,746 (103) 37,542 Minority interests 76 (11,257) - - Net foreign exchange gain (loss) 1,266 (64,484) 1,266 (64,484) 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, 1999 AND 1998 (UNAUDITED) (Amounts in Thousands of Baht) Consolidated Company 1999 1998 1999 1998 Share capital Ordinary shares Beginning balance 1,588,125 577,500 1,588,125 577,500 Increase in this period - - - - Ending balance 1,588,125 577,500 1,588,125 577,500 Paid-in capital Premium on share capital Beginning balance 3,751,380 733,580 3,751,380 733,580 Increase in this period - - - - Ending balance 3,751,380 733,580 3,751,380 733,580 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 116,873 116,038 57,750 57,750 Increase in this period - 520 - - Ending balance 116,873 116,558 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 2,036,926 2,021,021 2,098,450 2,081,710 Increase in this period 189,078 116,035 189,078 116,035 Decrease in this period (14,960) 49,991 (14,960) 50,511 Ending balance 2,211,044 2,187,047 2,272,568 2,248,256 Loss from translation of foreign currency financial statements Beginning balance (106,775) (6,325) (106,775) (6,325) Increase in this period - - - - Ending balance (106,775) (6,325) (106,775) (6,325) Total Shareholders' Equity 7,684,916 3,732,629 7,684,916 3,732,629 See notes to financial statements BERLI JUCKER PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF RETAINED EARNINGS FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 1999 AND 1998 (UNAUDITED) (Amounts in Thousands of Baht) Consolidated Company 1999 1998 1999 1998 Unappropriated retained earnings Beginning balance 2,036,926 2,021,021 2,098,450 2,081,710 Less appropriations of earnings: Legal reserve - (520) - - Cost of investment in excess of net assets of subsidiary and associated companies eliminated against retained earnings (14,960) 50,511 (14,960) 50,511 Net income for the period 189,078 116,035 189,078 116,035 Unappropriated retained earnings at end of period 2,211,044 2,187,047 2,272,568 2,248,256 Appropriated retained earnings Legal reserve 116,873 116,558 57,750 57,750 Reserve for business expansion 87,401 87,401 85,000 85,000 Appropriated retained earnings at end of period 204,274 203,959 142,750 142,750 Retained earnings at end of period 2,415,318 2,391,006 2,415,318 2,391,006 See notes to financial statements (More)