REVIEW REPORT OF THE INDEPENDENT CERTIFIED PUBLIC...
Transcript of REVIEW REPORT OF THE INDEPENDENT CERTIFIED PUBLIC...
REVIEW REPORT OF THE INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS TO THE BOARD OF DIRECTORS THAI WACOAL PUBLIC COMPANY LIMITED We have reviewed the consolidated balance sheet of Thai Wacoal Public Company Limited and its subsidiaries and the separate balance sheet of Thai Wacoal Public Company Limited as at March 31, 2007, and the related consolidated and separate statements of income, changes in shareholders’ equity and cash flows for the quarters ended March 31, 2007 and 2006. These financial statements are the responsibility of the Company’s management as to their correctness and completeness of the presentation. Our responsibility is to report on these financial statements based on our reviews. We conducted our reviews in accordance with the Standard on Auditing applicable to review engagements. This Standard requires that we plan and perform the reviews to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit in accordance with generally accepted auditing standards and, accordingly, we do not express an opinion. Based on our reviews, nothing has come to our attention that causes us to believe that such consolidated and separate financial statements identified in the first paragraph are not presented fairly, in all material respects, in accordance with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the consolidated and the separate financial statements (before restated) for the year ended December 31, 2006, and expressed an unqualified opinion in our report dated February 13, 2007. The consolidated and the separate balance sheets as at December 31, 2006, presented herein for comparison, have been derived from such consolidated and separate financial statements which we have audited and reported on. We have not performed any other audit procedures subsequent to such report date except those referred to in paragraph 5. As discussed in Note 4 to the financial statements, for the quarter ended March 31, 2007 the Company changed its accounting policy for investments in subsidiaries from the equity method to the cost method in the separate financial statements to be in compliance with the Notification of Federation of Accounting Professions, and restated the separate statements of income, changes in shareholders’ equity and cash flows for the quarter ended March 31, 2006 and the separate balance sheet as at December 31, 2006 for the change in such accounting policy. We have audited the adjustments that were applied to restate the separate financial statements for the year ended December 31, 2006. In our opinion, such adjustments are appropriate and have been reasonably applied to the separate financial statements. Niti Jungnitnirundr Certified Public Accountant (Thailand) BANGKOK Registration No. 3809 May 8, 2007 DELOITTE TOUCHE TOHMATSU JAIYOS AUDIT CO., LTD.
(Restated) ASSETS
CURRENT ASSETSCash and cash equivalents 818,221 1,078,373 711,887 912,867Current investments (Note 5) 366,044 31,772 231,841 6,895
Trade accounts receivable (Note 6)Related parties (Note 16) 549,662 564,051 635,188 647,358Other companies 21,632 21,588 10,043 9,600
571,294 585,639 645,231 656,958Short-term loans to related parties (Note 7) 31,500 40,500 21,500 30,500Other short-term loans (Note 8) 30,000 30,000 - -Current portion of long-term loan to a related party (Note 11) 3,467 3,467 3,467 3,467Inventories 931,056 881,419 742,241 694,959Other current assets
Refundable VAT 2,623 1,953 2,623 1,953Supplies 22,319 21,278 15,994 15,422Accrued income 17,849 6,310 17,849 6,310Others 21,749 9,767 19,853 9,275
64,540 39,308 56,319 32,960Total Current Assets 2,816,122 2,690,478 2,412,486 2,338,606
NON-CURRENT ASSETSInvestments in subsidiaries (Note 9) - - 122,036 122,036Other long-term investments (Note 10) 1,261,845 1,323,102 1,231,548 1,294,655Long-term loan to a related party (Note 11) 5,200 6,933 5,200 6,933Property, plant and equipment - net (Note 12) 776,837 790,103 611,984 618,630Intangible assets - net 34,118 32,391 33,315 31,642Other non-current assets
Assets pending transfer (Note 13) 48,880 48,880 48,880 48,880Others (Note 14) 13,275 13,120 12,159 12,355
Total Non-Current Assets 2,140,155 2,214,529 2,065,122 2,135,131TOTAL ASSETS 4,956,277 4,905,007 4,477,608 4,473,737
“Unaudited” “Unaudited”
December 31, December 31,2006
March 31,March 31,2007
THAI WACOAL PUBLIC COMPANY LIMITED AND SUBSIDIARIESBALANCE SHEETS
As atAs at
AS AT MARCH 31, 2007 AND DECEMBER 31, 2006BAHT : ’000
As atAs at
CONSOLIDATED SEPARATE
See notes to the interim financial statements
20072006
(Restated)LIABILITIES AND SHAREHOLDERS’ EQUITYCURRENT LIABILITIES
Bank overdraft 308 - 308 - Trade accounts payable
Related parties (Note 16) 272,792 206,678 359,014 317,177Other companies 139,859 149,179 95,801 110,849
412,651 355,857 454,815 428,026Other current liabilities
Accrued income tax 71,169 42,777 50,100 28,348Accrued bonus expense 38,019 105,980 27,544 75,780Accrued royalty fee 52,055 42,440 52,055 42,440Provision for loss from goods returned 44,000 45,000 44,000 45,000Others 39,339 40,534 21,932 25,906
244,582 276,731 195,631 217,474Total Current Liabilities 657,541 632,588 650,754 645,500
TOTAL LIABILITIES 657,541 632,588 650,754 645,500
CONSOLIDATED SEPARATE
March 31,As at
December 31,
“Unaudited” “Unaudited”As at As at
BAHT : ’000
BALANCE SHEETS (CONTINUED)AS AT MARCH 31, 2007 AND DECEMBER 31, 2006
THAI WACOAL PUBLIC COMPANY LIMITED AND SUBSIDIARIES
As atMarch 31,
20072007 2006December 31,
2006
(Restated)LIABILITIES AND SHAREHOLDERS’ EQUITY
(Continued)SHAREHOLDERS’ EQUITYSHARE CAPITAL
Authorized share capital120,000,000 ordinary shares of
Baht 1.00 each 120,000 120,000 120,000 120,000Issued and paid-up share capital
120,000,000 ordinary shares ofBaht 1.00 each, fully paid 120,000 120,000 120,000 120,000
PREMIUM ON COMMON STOCKS 297,190 297,190 297,190 297,190RETAINED EARNINGS
AppropriatedLegal reserve 12,000 12,000 12,000 12,000General reserve 165,906 165,906 165,906 165,906
Unappropriated 3,072,216 2,975,095 2,597,634 2,529,238
UNREALIZED GAINS ON THE CHANGES IN VALUE OF AVAILABLE-FOR-SALE SECURITIES (Note 10.3) 631,143 701,957 634,124 703,903
TOTAL SHAREHOLDERS’ EQUITY OF THE COMPANY 4,298,455 4,272,148 3,826,854 3,828,237MINORITY INTEREST 281 271 - -TOTAL SHAREHOLDERS’ EQUITY 4,298,736 4,272,419 3,826,854 3,828,237
4,956,277 4,905,007 4,477,608 4,473,737
See notes to the interim financial statements
2007
As at
SHAREHOLDERS’ EQUITY
THAI WACOAL PUBLIC COMPANY LIMITED AND SUBSIDIARIESBALANCE SHEETS (CONTINUED)
AS AT MARCH 31, 2007 AND DECEMBER 31, 2006BAHT : ’000
SEPARATE
As at
2006
“Unaudited”“Unaudited”CONSOLIDATED
March 31,
TOTAL LIABILITIES AND
December 31,2006
As atAs atMarch 31,
2007December 31,
2007 2006 2007 2006(Restated)
REVENUES
831,179 986,612 879,911 1,115,20355,938 31,601 53,770 28,406
Total Revenues 887,117 1,018,213 933,681 1,143,609
EXPENSES622,807 772,525 727,162 960,519133,388 116,338 113,681 96,159
4,925 10,021 2,240 7,068Total Expenses 761,120 898,884 843,083 1,063,746
PROFIT BEFORE INTEREST AND INCOME TAX EXPENSES 125,997 119,329 90,598 79,863INTEREST EXPENSE 1 - - - INCOME TAX 28,865 23,991 22,202 16,434PROFIT AFTER INTEREST AND
INCOME TAX EXPENSES 97,131 95,338 68,396 63,429NET PROFIT OF MINORITY INTEREST (10) (13) - - NET PROFIT 97,121 95,325 68,396 63,429
BASIC EARNINGS PER SHARE BAHT 0.81 0.79 0.57 0.53
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES SHARES 120,000,000 120,000,000 120,000,000 120,000,000
See notes to the interim financial statements
SEPARATE
Revenues from sale of goods and
Cost of sale of goods and rendering of servicesSelling and administrative expensesOther expenses
rendering of services Other income
BAHT : ’000
CONSOLIDATED
THAI WACOAL PUBLIC COMPANY LIMITED AND SUBSIDIARIESSTATEMENTS OF INCOME
FOR THE QUARTERS ENDED MARCH 31, 2007 AND 2006"UNAUDITED"
Premium on TotalRetained Earnings
Beginning balance : January 1, 2006 120,000 297,190 12,000 147,195 2,730,986 725,261 258 4,032,890Net profit - - - - 95,325 - - 95,325Increase (decrease) during the period - - - - - (13,890) 13 (13,877)Ending balance : March 31, 2006 120,000 297,190 12,000 147,195 2,826,311 711,371 271 4,114,338
Beginning balance : January 1, 2007 120,000 297,190 12,000 165,906 2,975,095 701,957 271 4,272,419Net profit - - - - 97,121 - - 97,121Increase (decrease) during the period - - - - - (70,814) 10 (70,804)Ending balance : March 31, 2007 120,000 297,190 12,000 165,906 3,072,216 631,143 281 4,298,736
Unappropriatedretained earnings
Minority interest
Appropriated Retained Earnings
legal reserve general reserve
AppropriatedIssued andpaid-up
share
See notes to the interim financial statements
capital
common Stocks
BAHT : ’000
securities
Unrealized gain on the
THAI WACOAL PUBLIC COMPANY LIMITED AND SUBSIDIARIESSTATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
CONSOLIDATEDFOR THE QUARTERS ENDED MARCH 31, 2007 AND 2006
“UNAUDITED”
changes in value of available-for-sale
TotalRetained Earnings Retained Earnings
Beginning balance : January 1, 2006 (as previously reported) 120,000 297,190 12,000 147,195 2,730,986 725,261 4,032,632Cumulative effects from the change in accounting policy for
investments in subsidiaries (Note 4) - - - - (448,181) 1,100 (447,081)Beginning balance : January 1, 2006 (as restated) 120,000 297,190 12,000 147,195 2,282,805 726,361 3,585,551Decrease during the period - - - - - (11,370) (11,370)Net profit - - - - 63,429 - 63,429Ending balance : March 31, 2006 120,000 297,190 12,000 147,195 2,346,234 714,991 3,637,610
capital
Premium oncommon
Stocks
“UNAUDITED”
available-for-sale changes in value of
BAHT : ’000
Issued andpaid-up
share
Appropriated
legal reserve
THAI WACOAL PUBLIC COMPANY LIMITED AND SUBSIDIARIESSTATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
SEPARATEFOR THE QUARTERS ENDED MARCH 31, 2007 AND 2006
securities
Unrealized gain on the
general reserve
Appropriated Unappropriatedretained earnings
TotalRetained Earnings Retained Earnings
Beginning balance : January 1, 2007 (as previously reported) 120,000 297,190 12,000 165,906 2,975,095 701,957 4,272,148Cumulative effects from the change in accounting policy for
investments in subsidiaries (Note 4) - - - - (445,857) 1,946 (443,911)Beginning balance : January 1, 2007 (as restated) 120,000 297,190 12,000 165,906 2,529,238 703,903 3,828,237Decrease during the period - - - - - (69,779) (69,779)Net profit - - - - 68,396 - 68,396Ending balance : March 31, 2007 120,000 297,190 12,000 165,906 2,597,634 634,124 3,826,854
See notes to the interim financial statements
capital securities
common retained earnings changes in value ofshare Stocks legal reserve general reserve available-for-sale
THAI WACOAL PUBLIC COMPANY LIMITED AND SUBSIDIARIESSTATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
SEPARATE (CONTINUED)FOR THE QUARTERS ENDED MARCH 31, 2007 AND 2006
paid-up
“UNAUDITED”
Issued and Premium on Appropriated Appropriated
BAHT : ’000
Unappropriated Unrealized gain on the
2007 2006 2007 2006(Restated)
CASH FLOWS FROM OPERATING ACTIVITIESNet profit 97,121 95,325 68,396 63,429Items to reconcile net profit to net cash flows:
Depreciation 21,048 21,904 12,544 11,239Amortization of other assets 1,028 883 977 835Net profit of minority interest 10 13 - -Gain on sales of property, plant and equipment (1,321) (155) (1,316) (156)Loss on exchange rate 295 3,197 295 3,197Dividend income from general investment (18,804) (15,943) (18,804) (13,483)Provision for impairment of general investment 850 5,907 850 5,907Allowance for loss from goods returned (reversal) (1,000) (8,000) (1,000) (8,000)Loss on devaluation of inventories 18,084 15,452 17,384 15,452(Gain) loss on sales of investments (1,768) 2,143 (1,427) -
Income from operations before changes in operating assets and liabilities 115,543 120,726 77,899 78,420Operating assets (increase) decrease
Trade account receivables 14,345 (100,133) 11,727 (120,588)Inventories (67,720) (14,187) (64,664) (11,652)Refundable VAT (670) (1,437) (670) (1,437)Supplies (1,041) 109 (572) (1,186)Other current assets (23,625) (23,995) (22,117) (21,146)
Operating liabilities increase (decrease)Trade account payables 56,795 62,778 26,789 99,748Accrued income tax 28,392 23,584 21,752 16,027Accrued bonus expenses (67,961) (54,371) (48,236) (38,460)Accrued royalty fee 9,615 10,717 9,615 10,717Other current liabilities (1,110) (4,174) (3,807) (6,700)
Net cash provided by operating activities 62,563 19,617 7,716 3,743
CONSOLIDATED SEPARATE
THAI WACOAL PUBLIC COMPANY LIMITED AND SUBSIDIARIESSTATEMENTS OF CASH FLOWS
FOR THE QUARTERS ENDED MARCH 31, 2007 AND 2006
BAHT : ’000“UNAUDITED”
2007 2006 2007 2006(Restated)
CASH FLOWS FROM INVESTING ACTIVITIES(Increase) decrease in current investments (333,850) (19,605) (225,000) - Proceeds from short-term loans to related parties 9,000 12,350 9,000 12,350Payment for short-term loans to related parties - (5,000) - (5,000)Proceeds from other short-term loans - 5,000 - - Payment for other short-term loans - (5,000) - - Proceeds from long-term loans to related parties 1,733 - 1,733 - Payment for purchase of available-for-sale securities - (802) - (802)Proceeds from sale of general investments 3,720 1,863 3,720 1,000Payment for purchase of general investments (3,020) (647) - (647)Payment for purchase of debentures (10,000) - (10,000) - Proceeds from sale of property, plant and equipment 2,612 2,922 2,606 2,916Payment for purchase of property, plant and equipment (9,158) (15,190) (7,355) (11,124)Dividends received 18,804 15,943 18,804 13,483Increase in other non-current assets (2,806) (1,489) (2,454) (1,490)
Net cash provided by (used in) investing activities (322,965) (9,655) (208,946) 10,686
CASH FLOWS FROM FINANCING ACTIVITIESIncrease in bank overdrafts and short-term loans from financing institutions 308 - 308 -
Net cash provided by financing activities 308 - 308 -
Effect of exchange rate changes on cash and cash equivalents (58) (2,758) (58) (2,758)Net increase (decrease) in cash and cash equivalents (260,152) 7,204 (200,980) 11,671Cash and cash equivalents as at January 1, 1,078,373 645,554 912,867 544,882Cash and cash equivalents as at March 31, 818,221 652,758 711,887 556,553
“UNAUDITED”BAHT : ’000
CONSOLIDATED
STATEMENTS OF CASH FLOWS (CONTINUED)THAI WACOAL PUBLIC COMPANY LIMITED AND SUBSIDIARIES
FOR THE QUARTERS ENDED MARCH 31, 2007 AND 2006
SEPARATE
2007 2006 2007 2006(Restated)
Additional informationCash paid for income tax
Income tax 613 561 450 407
Cash and cash equivalentsCash in hand 315 302 198 197Deposit at banks and financial institutions 817,906 652,456 711,689 556,356
818,221 652,758 711,887 556,553
Non-cash transactions Increase (decrease) in payable of machinery, furniture, fixtures
and office equipment (85) 6,044 (167) 6,003
Increase (decrease) in unrealized gains on the changes in value of available-for-sale securities in shareholders’ equity (70,814) (13,889) (69,779) (11,370)
See notes to the interim financial statements
BAHT : ’000
CONSOLIDATED SEPARATE
STATEMENTS OF CASH FLOWS (CONTINUED)THAI WACOAL PUBLIC COMPANY LIMITED AND SUBSIDIARIES
“UNAUDITED”FOR THE QUARTERS ENDED MARCH 31, 2007 AND 2006
THAI WACOAL PUBLIC COMPANY LIMITED AND SUBSIDIARIES NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE QUARTERS ENDED MARCH 31, 2007 AND 2006 “UNAUDITED” 1. OPERATIONS OF THE COMPANY AND SUBSIDIARIES
Thai Wacoal Public Company Limited is registered in The Stock Exchange of Thailand and its subsidiaries are companies registered in Thailand. The principal business of the Company and subsidiaries is to manufacture clothes which mainly are ladies’ lingerie. Locations of the Company and subsidiaries as at March 31, 2007 are as follows:
NAME LOCATION
Thai Wacoal Public Co., Ltd. 930/1 Soi Pradoo 1, Sathupradith Road, Khwang Bangkhlo, Bangkholaem District, Bangkok 10120 Direct subsidiaries SR.W. Garment Co., Ltd. 173/2 Moo 5, Sukaphibal 8 Road Tambol Bung, Sriracha District, Chonburi 20230 Wacoal Kabinburi Co., Ltd. 121, 121/1 Moo 5, Suwannasorn Road, Tambol Nonsee, Kabinburi District, Prachinburi 25110 Wacoal Lamphun Co., Ltd. 99, 99/4 Moo 5, Liongmuang Road, Tambol Paa-Sak, Muanglamphun District, Lamphun 51000 Indirect subsidiary Pattaya Kabinburi Co., Ltd. 123, 123/1 Moo 5, Suwannasorn Road, Tambol Nonsee, Kabinburi District, Prachinburi 25110
2. BASIS FOR PREPARATION OF THE INTERIM CONSOLIDATED AND THE COMPANY’S FINANCIAL STATEMENTS 2.1 These interim financial statements are prepared in accordance with Accounting Standard No. 41
“Interim Financial Statements”, with the Company choosing to present condensed interim financial statements. However, additional line items are presented in the balance sheets, statements of income, changes in shareholders’ equity and cash flows as in the annual financial statements. The interim consolidated and the separate financial statements (previously “the Company’s financial statements”) are prepared in compliance with the Notification of the Department of Commercial Registration (currently Department of Business Development) dated September 14, 2001 regarding “The Brief Particulars in the Financial Statements B.E. 2544”. In addition, the interim consolidated and the separate financial statements have been prepared in accordance with the regulations of The Stock Exchange of Thailand (SET) dated January 22, 2001, regarding the preparation and submission of financial statements and reports for the financial position and results of operations of listed companies B.E. 2544, and in accordance with accounting standards in Thailand.
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2.2 The consolidated and separate balance sheets as at December 31, 2006, presented herein for
comparison, has been derived from the consolidated and separate financial statements of the Company for the year then ended which had been previously audited.
2.3 The unaudited results of operations presented in the quarters ended March 31, 2007 and 2006 are
not necessarily an indication nor anticipation of the operating results for the full years. 2.4 Certain financial information which is normally included in financial statements prepared in
accordance with generally accepted accounting principles, but which is not required for interim reporting purposes, has been omitted. In addition, the interim financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2006.
2.5 The consolidated financial statements incorporate the accounts of Thai Wacoal Public Company
Limited and subsidiaries by eliminating significant related parties transactions and intercompany balances, investments in and share capital of the subsidiaries. Subsidiaries are those companies which Thai Wacoal Public Company Limited holds, directly or indirectly, more than fifty percent of the issued share capital, or those companies whose financial and operating policies are controlled by Thai Wacoal Public Company Limited. The subsidiaries incorporated in the consolidated and separate financial statements are as follows: March 31, December 31, 2007 2006 % of % of Ownership Ownership
Subsidiary companies Direct subsidiaries
SR.W. Garment Co., Ltd. 99.94 99.94 Wacoal Kabinburi Co., Ltd. 99.99 99.99 Wacoal Lamphun Co., Ltd. 99.99 99.99
Indirect subsidiary (Equity held by SR.W. Garment Co., Ltd.)
Pattaya Kabinburi Co., Ltd. 99.93 99.93 2.6 Reclassifications have been made to the financial statements for the quarter ended March 31, 2006
to conform to the classifications used in the financial statements for the quarter ended March 31, 2007 as follows:
- Loss from impairment of investments of Baht 5,907,000 in the consolidated and separate statements of income for the quarter ended March 31, 2006 previously presented as selling and administrative expenses has been presented as other expenses.
- Hire of work income in the consolidated and separate statements of income for the quarter ended March 31, 2006 amounting to Baht 567,606 and Baht 889,469, respectively, previously presented as other income have been presented as revenue from sale of goods and rendering of services.
- Accrued income of Baht 6,310,308 in the consolidated and separate balance sheets as at December 31, 2006 previously presented as other current assets have been presented separately in the consolidated and separate balance sheets.
2.7 Preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure of contingent assets and liabilities. The actual results may differ from those estimates.
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3. SIGNIFICANT ACCOUNTING POLICIES
The interim financial statements have been prepared based on the basis, accounting policies and method of computation consistent with those used in the annual financial statements for the year ended December 31, 2006, except for the change in accounting policy as described in Note 4.
4. CHANGE IN ACCOUNTING POLICY For the quarter ended March 31, 2007, the Company changed its accounting policy for investments in subsidiaries from the equity method to the cost method in the separate financial statements to comply with the Notification of Federation of Accounting Professions No.26/2549 (Amendment No. 1) regarding Thai Accounting Standard No.44 “Consolidated Financial Statements and Accounting for Investments in Subsidiaries” and the Notification of Federation of Accounting Professions No. 32/2549 regarding the explanation for Thai Accounting Standard No.44 “Consolidated Financial Statements and Accounting for Investments in Subsidiaries” (paragraph 27) and Thai Accounting Standard No. 45 “Accounting for investment in Associates” (paragraph 11). This change in accounting policy has been accounted for retroactively in the separate financial statements as if the Company had recorded such investments by the cost method according to the new accounting policy continuously. Therefore, the comparative information for the separate statement of income, changes in shareholders’ equity and cash flows for the quarter ended March 31, 2006 and the separate balance sheet as at December 31, 2006 has been restated to conform to the new accounting policy. The change in such accounting policy affects the transactions in the separate financial statements, but there is no effect on the preparation of the consolidated financial statements. Comparative information for the separate statements of income and changes in shareholders’ equity for the quarter ended March 31, 2006 and the separate balance sheet as at December 31, 2006 has been restated to reflect the effect of the change to cost method as follows:
Baht As at December 31,
2006 Balance sheet :
Decrease in investments in subsidiaries 443,910,866 Decrease in retained earnings at the end of year 445,857,126 Increase in unrealized gains on the changes in value of available-for-sale securities 1,946,260
For the quarter ended March 31, 2006
Statement of income : Decrease in share of profit from subsidiaries 31,896,647 Decrease in net income 31,896,647 Decrease in earnings per share 0.26
Statement of changes in shareholders’ equity : Decrease in retained earnings at beginning of the period 448,180,968 Increase in unrealized gains on the changes in value of
available-for sale securities at the beginning of the period 1,099,715
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5. CURRENT INVESTMENTS
BAHT ’000
CONSOLIDATED SEPARATE March 31, December 31, March 31, December 31, 2007 2006 2007 2006
Time deposit - maturity term of 12 months amount of HKD 1.5 million 6,657 6,895 6,657 6,895
Short-term investments in available-for-sale securities - equity securities 359,387 24,877 225,184 -
366,044 31,772 231,841 6,895
The Company has used the time deposit with maturity term of 12 months in the amount of HKD 1.5 million as collateral for credit facility from financial institution in favor of a related company. Additional details of available-for-sale securities - short-term investments consist of the following:
BAHT ’000 CONSOLIDATED
Cost Value Unrealized Unrealized Fair Value March 31, gross profit gross loss March 31,
2007 2007 Available-for-sale securities Equity securities
- Others 358,977 410 - 359,387
BAHT ’000 CONSOLIDATED Cost Value Unrealized Unrealized Fair Value December 31, gross profit gross loss December 31, 2006 2006
Available-for-sale securities Equity securities
- Others 24,786 91 - 24,877
BAHT ’000 SEPARATE Cost Value Unrealized Unrealized Fair Value March 31, gross profit gross loss March 31, 2007 2007
Available-for-sale securities Equity securities
- Others 225,000 184 - 225,184
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6. TRADE ACCOUNT RECEIVABLES Analysis of trade account receivables aging are as follows:
BAHT ’000 CONSOLIDATED SEPARATE
March 31, December 31, March 31, December 31, 2007 2006 2007 2006
Current 526,190 533,405 591,093 595,354 Overdue
Within 3 months 42,720 51,237 51,807 60,595 Between 3 and 6 months 2,036 176 1,983 188 Between 6 and 12 months 94 567 94 567 More than 12 months 254 254 254 254
Trade account receivables 571,294 585,639 645,231 656,958 7. SHORT-TERM LOANS TO RELATED PARTIES
Short-term loans to related parties consist of the following:
BAHT ’000 Balance Additions Settlements Balance as at as at December 31, March 31, 2006 2007
CONSOLIDATED Short-term loans to related parties
- Thai Naxis Co., Ltd. 9,000 - - 9,000 - Thai Itokin Co., Ltd. 10,000 - - 10,000 - SSDC (Tigertex) Co., Ltd. 21,500 - (9,000) 12,500
Total 40,500 - (9,000) 31,500 SEPARATE
Short-term loans to related parties - Thai Naxis Co., Ltd. 9,000 - - 9,000 - SSDC (Tigertex) Co., Ltd. 21,500 - (9,000) 12,500
Total 30,500 - (9,000) 21,500 Related party relationships are described in Notes 10 and 16. Short-term loans carry interest at the rate of fixed deposit plus the rate specified by the Company and the specific business tax rate. Interest rates of the Company and subsidiaries charging to borrowers are at the rate from 4.25% to 6.50% per annum for the quarter ended March 31, 2007 (Company : 4.25% to 6.50% per annum) and from 3.50% to 6.75% per annum for the year ended December 31, 2006 (Company : 3.50% to 6.75% per annum).
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8. OTHER SHORT-TERM LOANS As at March 31, 2007 and December 31, 2006, other short-term loans in the consolidated financial statements amounting to Baht 30 million are promissory notes at call, with interest at 4.5% per annum and 3.25% - 4.00% per annum, respectively.
9. INVESTMENTS IN SUBSIDIARIES BAHT ’000
SEPARATE Companies Business Type Paid-up capital Cost method
March 31, December 31, March 31, December 31, 2007 2006 2007 2006 Subsidiary companies
SR.W. Garment Co., Ltd. Manufacturing clothing 20,000 20,000 22,038 22,038 Wacoal Lamphun Co., Ltd. Manufacturing clothing 50,000 50,000 49,999 49,999 Wacoal Kabinburi Co., Ltd. Manufacturing clothing 50,000 50,000 49,999 49,999
Total investments in subsidiaries 122,036 122,036
10. OTHER LONG-TERM INVESTMENTS Other long-term investments consist of the following:
BAHT ’000 CONSOLIDATED SEPARATE As at As at As at As at March 31, December 31, March 31, December 31, 2007 2006 2007 2006
Available-for-sale securities Ordinary shares
- Related companies 704,293 780,622 692,143 767,122 - Other companies 222,172 216,976 207,045 202,029
Total 926,465 997,598 899,188 969,151 General investments Ordinary shares
- Related companies 206,181 206,481 206,181 206,481 Less Allowance for impairment (41,658) (40,908) (41,658) (40,908)
164,523 165,573 164,523 165,573
- Other companies 162,572 161,545 159,552 161,545 Less Allowance for impairment (39,215) (39,114) (39,215) (39,114)
123,357 122,431 120,337 122,431 Total 287,880 288,004 284,860 288,004
Held-to-maturity securities Debentures 47,500 37,500 47,500 37,500
1,261,845 1,323,102 1,231,548 1,294,655 …/7
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10. OTHER LONG-TERM INVESTMENTS (CONTINUED)
10.1 Details of investments in related companies BAHT ’000
CONSOLIDATED SEPARATE Companies Business Type Relationship Paid-up capital % of Cost value Fair value % of Cost value Fair value
ownership ownership March 31, December 31, March 31, December 31, March 31, December 31, March 31, December 31, March 31, December 31, March 31, December 31, March 31, December 31, 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006
Available-for-sale securities Textile Prestige Manufacturing The Company’s major
Public Co., Ltd. garment shareholder has over 10% shareholding 108,000 108,000 16.91 16.91 51,365 51,365 268,477 321,442 16.91 16.91 51,365 51,365 268,477 321,442
ICC International Distributor The Company’s major Public Co., Ltd. shareholder has over
10% shareholding 290,634 290,634 3.64 3.64 110,169 110,169 422,934 444,823 3.53 3.53 100,344 100,344 410,784 431,323 Saha Pathana Inter Holding company The major
Holding Public Co., Ltd. shareholder 494,034 494,034 0.14 0.14 4,551 4,551 12,882 14,357 0.14 0.14 4,551 4,551 12,882 14,357 Total available- for-sale securities 166,085 166,085 704,293 780,622 156,260 156,260 692,143 767,122
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10. OTHER LONG-TERM INVESTMENTS (CONTINUED)
10.1 Details of investments in related companies (Continued)
BAHT ’000 Companies Business Type Relationship Paid-up capital % of CONSOLIDATED SEPARATE
Ownership Carrying value* Carrying value* March 31, December 31, March 31, December 31, March 31, December 31, March 31, December 31, 2007 2006 2007 2006 2007 2006 2007 2006
General investments S.T.G.C. Co., Ltd. Research Business Mutual directorship 2,500 2,500 13.00 13.00 256 256 256 256 Grand Star Industry Co., Ltd. Manufacturing garment The Company’s major 20,000 20,000 17.80 17.80 3,560 3,560 3,560 3,560 shareholder has over 10% shareholding Thai Nanasai Co., Ltd. Interior designer Mutual directorship 6,000 6,000 16.99 16.99 1,019 1,019 1,019 1,019 Pattaya Manufacturing Co., Ltd. Manufacturing clothing The Company’s major 30,000 30,000 14.67 14.67 11,611 11,611 11,611 11,611 shareholder has over 10%
shareholding SSDC (Tigertex) Co., Ltd. Dying The Company’s major 270,000 270,000 18.72 18.72 58,746 58,746 58,746 58,746 shareholder has over 10%
shareholding T.U.C. Elastic Co., Ltd. Manufacturing elastic The Company’s major 160,000 160,000 10.75 10.75 10,258 10,258 10,258 10,258 shareholder has over 10% shareholding Royal Garment Co., Ltd. Manufacturing clothing Mutual directorship 1,000 1,000 9.00 9.00 388 388 388 388 Thai Naxis Co., Ltd. Weaving and Mutual directorship Printing Labels 20,000 20,000 16.46 16.46 2,866 2,866 2,866 2,866 Guangdong Xiezhong Garment Co., Ltd. Manufacturing clothing Mutual directorship 116,640 116,640 18.00 18.00 3,815 3,815 3,815 3,815 Sunrise Garment Co., Ltd. Manufacturing clothing Mutual directorship 10,000 10,000 18.15 18.15 6,510 6,510 6,510 6,510 Wien Co., Ltd. Direct sales The Company’s major 10,000 10,000 17.90 17.90 10,772 10,772 10,772 10,772 shareholder has over 10% shareholding Raja Uchino Co., Ltd. Lining The Company’s major 81,000 81,000 4.47 4.47 2,848 2,848 2,848 2,848 shareholder has over 10% shareholding Champ Ace Co., Ltd. Garment The Company’s major 40,000 40,000 10.00 10.00 4,000 4,000 4,000 4,000 shareholder has over 10% shareholding *Net of allowance for impairment …/9
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BAHT ’000
Companies Business Type Relationship Paid-up capital % of CONSOLIDATED SEPARATE Ownership Carrying value* Carrying value* March 31, December 31, March 31, December 31, March 31, December 31, March 31, December 31, 2007 2006 2007 2006 2007 2006 2007 2006
General investments (Continued) Thai Monster Co., Ltd. Garment The Company’s major 20,000 20,000 5.00 5.00 1,000 1,000 1,000 1,000 shareholder has over 10% shareholding Thai Fujiya Co., Ltd. Food Products The Company’s major 30,000 30,000 6.67 6.67 - - - - shareholder has over 10% shareholding Belle Maison (Thailand) Co., Ltd. Direct Mail & Internet The Company’s major 80,000 80,000 11.63 11.63 570 770 570 770 shareholder has over 10% shareholding Thai Asahi Kasei Spandex Co., Ltd. Manufacturing of The Company’s major 520,000 520,000 2.00 2.00 14,000 14,000 14,000 14,000 Spandex fiber shareholder has over 10% shareholding Morgan De Toi (Thailand) Co., Ltd. Distributor Brand The Company’s major 25,000 25,000 12.00 12.00 3,000 3,000 3,000 3,000 “MORGAN” shareholder has over 10% shareholding Five Stars Plus Co., Ltd. Manufacturer of The Company’s major 50,000 50,000 17.00 17.00 8,500 8,500 8,500 8,500 Leather coats shareholder has over 10% shareholding QB (Thailand) Co., Ltd. Barber/Beauty Salon The Company’s major 25,000 25,000 15.00 15.00 1,484 1,634 1,484 1,634 shareholder has over 10% shareholding International Commercial Coordination (HK) Direct sales The Company’s major 8,805 8,805 18.00 18.00 - - - - shareholder has over 10% shareholding Sriracha Bsc. Bowling Co., Ltd. Bowling The Company’s major 40,000 40,000 5.00 5.00 1,690 1,790 1,690 1,790
shareholder has over 10% shareholding Mit Patana Home Shopping Co., Ltd. Direct mail & Internet The Company’s major 30,000 30,000 5.67 6.67 762 1,262 762 1,262 shareholder has over 10% shareholding Indonesia Wacoal Garment The Company’s major 108,472 108,472 6.00 6.00 6,508 6,508 6,508 6,508 shareholder has over 10% shareholding Dome composite Co., Ltd. Manufacturer of The Company’s major 20,000 20,000 15.00 15.00 7,500 7,500 7,500 7,500 vehicle’s parts shareholder has over 10% shareholding Waseda Education (Thailand) co., Ltd. Institute of Japanese The company’s major 25,000 25,000 8.00 8.00 1,600 1,600 1,600 1,600 shareholder has over 10% shareholding Thai Bunka Fashion co., Ltd. Institute of Fashion Mutual directorship 25,000 25,000 8.00 8.00 1,260 1,360 1,260 1,360 Design Sun color co., Ltd. Retail The company’s major 100,000 100,000 5.00 5.00 - - - - shareholder has over
10% shareholding Total general investments 164,523 165,573 164,523 165,573 *Net of allowance for impairment …/10
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10. OTHER LONG-TERM INVESTMENTS (CONTINUED)
10.2 Gain (loss) on sale of investments
For the quarters ended March 31, gain (loss) on sale of investments consists of the following:
Baht ’000 CONSOLIDATED SEPARATE 2007 2006 2007 2006
Gain (loss) on sale of investments - Available-for-sale securities 341 215 - - - General investments 1,427 (2,358) 1,427 -
Total gain (loss) on sale of investments 1,768 (2,143) 1,427 - 10.3 Net unrealized gains on changes in value of available-for-sale securities
Net unrealized gains on changes in value of available-for-sale securities consist of the following:
Baht ’000 CONSOLIDATED SEPARATE March 31, December 31, March 31, December 31, 2007 2006 2007 2006 (Restated)
Beginning balance 701,957 725,261 703,903 726,361 Additions (deductions) (70,814) (23,304) (69,779) (22,458) Ending balance 631,143 701,957 634,124 703,903
Additional details of available-for-sale securities - long-term investments consist of the
following:
Baht ’000 CONSOLIDATED Cost Value Unrealized Unrealized Fair Value
March 31, gross profit gross loss March 31, 2007 2007
Available-for-sale securities Equity securities
- Related parties 166,085 538,208 - 704,293 - Others 129,645 100,296 (7,769) 222,172
Total 295,730 638,504 (7,769) 926,465
Baht ’000 CONSOLIDATED Cost Value Unrealized Unrealized Fair Value
December 31, gross profit gross loss December 31, 2006 2006
Available-for-sale securities Equity securities
- Related parties 166,085 614,537 - 780,622 - Others 129,645 96,069 (8,738) 216,976
Total 295,730 710,606 (8,738) 997,598 …/11
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10. OTHER LONG-TERM INVESTMENTS (CONTINUED)
Baht ’000 SEPARATE Cost Value Unrealized Unrealized Fair Value
March 31, gross profit gross loss March 31, 2007 2007
Available-for-sale securities Equity securities
- Related parties 156,260 535,883 - 692,143 - Others 108,989 100,296 (2,239) 207,046
Total 265,249 636,179 (2,239) 899,189
Baht ’000 SEPARATE Cost Value Unrealized Unrealized Fair Value December 31, gross profit gross loss December 31, 2006 2006 Available-for-sale securities
Equity securities - Related parties 156,260 610,862 - 767,122 - Others 108,989 96,068 (3,028) 202,029
Total 265,249 706,930 (3,028) 969,151 11. LONG-TERM LOAN TO A RELATED PARTY
Long-term loan to related party consist of the following
Baht ’000 CONSOLIDATED AND
SEPARATE As at
March 31, 2007
As at December 31,
2006
Long-term loan to a related party 8,667 10,400 Less Current portion of long-term loan (3,467) (3,467)
5,200 6,933 Long-term loan to a related party represents loan to Thai Asahi Kasei Spandex Co., Ltd. amounting to Baht 10,400,000 due within 2009, semi-annually repayment starting February 2007, with interest rate at MMR of a commercial bank.
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12. PROPERTY, PLANT AND EQUIPMENT - NET
Baht ’000 CONSOLIDATED Balance as at Additions Disposals Transfer/ Balance as at December 31, Other March 31, 2006 2007
Cost Land 368,961 1,633 - - 370,594 Land improvement 5,233 - - - 5,233 Building and structures 444,213 1,198 - 450 445,861 Furniture, fixtures and
office equipment 398,501 752 - 870 400,123 Machinery and equipment 874,949 1,230 (2,115) 1,151 875,215 Vehicles 43,525 - (4,102) - 39,423
Total property, plant and equipment 2,135,382 4,813 (6,217) 2,471 2,136,449
Accumulated depreciation
Land improvement (2,229) (19) - - (2,248) Building and structures (231,614) (4,955) - - (236,569) Furniture, fixtures and
office equipment (317,859) (4,278) - - (322,137) Machinery and equipment (775,754) (10,486) 2,114 - (784,126) Vehicles (30,685) (1,310) 3,656 - (28,339)
Total accumulated depreciation (1,358,141) (21,048) 5,770 - (1,373,419)
Construction in progress and machinery under installation 12,862 4,260 (844) (2,471) 13,807
Property, plant and equipment - net 790,103 776,837 Depreciation for the quarters ended March 31,
2007 21,048 2006 21,904
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Baht ’000
SEPARATE Balance as at Additions Disposals Transfer/ Balance as at December 31, Other March 31, 2006 2007
Cost Land 332,511 1,633 - - 334,144 Land improvement 3,784 - - - 3,784 Building and structures 287,209 1,198 - - 288,407 Furniture, fixtures and
office equipment 262,565 275 - - 262,840 Machinery and equipment 516,183 938 (2,098) - 515,023 Vehicles 35,432 - (4,102) - 31,330
Total property, plant and equipment 1,437,684 4,044 (6,200) - 1,435,528 Accumulated depreciation
Land improvement (2,229) (19) - - (2,248)Building and structures (145,262) (3,096) - - (148,358)Furniture, fixtures and
office equipment (195,867) (2,910) - - (198,777)Machinery and equipment (461,123) (5,573) 2,098 - (464,598)Vehicles (25,853) (946) 3,656 - (23,143)
Total accumulated depreciation (830,334) (12,544) 5,754 - (837,124)
Construction in progress and machinery under installation 11,280 3,144 (844) - 13,580
Property, plant and equipment - net 618,630 611,984
Depreciation for the quarters ended March 31,
2007 12,544 2006 11,239
Cost of fixed assets which are fully depreciated and still in use of the Company and subsidiaries as at March 31, 2007 and December 31, 2006 is approximately Baht 1,022.48 million and Baht 995.92 million, respectively (The Company : Baht 643.88 million and Baht 643.63 million, respectively).
13. ASSETS PENDING TRANSFER
Assets pending transfer represent land not used in operations which, as at March 31, 2007, ownership has not been transferred since the Company has not commenced any construction on the land as stipulated in the purchase agreement of the land. In 2003, the Company received a notice in that regard from the seller on which the Company has been requested to comply with the terms of agreement. Currently, this matter is under the process of negotiation for ownership transfer. However, the purchase agreement may be cancelled and the Company will receive 70% refund of the Baht 69,828,000 purchase price. The management has fully established an allowance for loss from not complying with such agreement in the amount of 30% of the purchase price totaling Baht 20,948,400.
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14. OTHER NON-CURRENT ASSETS Other non-current assets as at March 31, 2007 and December 31, 2006 in the consolidated and the separate financial statements mainly represent deposits for the rent of land and vehicle with related parties and other deposits.
15. BANK OVERDRAFTS AND SHORT-TERM LOANS FROM FINANCIAL INSTITUTIONS
As at March 31, 2007 and December 31, 2006, the Company and subsidiaries have unsecured credit facilities as follows:
UNIT : MILLION BAHT
CONSOLIDATED SEPARATE March 31, December 31, March 31, December 31, 2007 2006 2007 2006
Facilities for bank overdrafts and short-term loans from financial institutions 1,127.90 1,127.90 970.90 970.90
The bank overdrafts and short-term loans from financial institutions bear interest rates of MOR per annum.
16. TRANSACTIONS WITH RELATED PARTIES
In the normal course of business, the Company purchases inventories from subsidiaries and related companies and purchases and sells most of raw materials from related companies. The related company has been a distributor. The financial statements reflect the effects of these transactions on the basis determined by the Company and the related parties. Significant balances with the related parties are as follows:
UNIT : MILLION BAHT Relationship CONSOLIDATED SEPARATE March 31, December 31, March 31, December
31, 2007 2006 2007 2006
Trade account receivables
ICC International Public Co., Ltd. Mutual directorship 419 447 419 447 Wacoal America Subsidiary of major 42 7 42 7 shareholder company Wacoal Corporation The major shareholder company 4 11 3 11 Pattaya Manufacturing Co., Ltd. Mutual directorship 4 7 3 6 Wien Co., Ltd. Mutual directorship 48 55 48 55 SR.W. Garment Co., Ltd. Subsidiary company - - 46 34 Wacoal Lamphun Co., Ltd. Subsidiary company - - 10 16 Wacoal Kabinburi Co., Ltd. Subsidiary company - - 17 23 Pattaya Kabinburi Co., Ltd. Subsidiary company - - 15 14 Others 33 37 32 34
Total trade account receivables 550 564 635 647
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UNIT : MILLION BAHT
Relationship CONSOLIDATED SEPARATE March 31, December 31, March 31, December
31, 2007 2006 2007 2006
Trade account payables Textile Prestige Public Co., Ltd. Mutual directorship 165 134 101 81 SR.W. Garment Co., Ltd. Subsidiary company - - 74 80 Wacoal Lamphun Co., Ltd Subsidiary company - - 40 35 Wacoal Kabinburi Co., Ltd. Subsidiary company - - 33 39 Pattaya Kabinburi Co., Ltd. Subsidiary company - - 32 34 Grand Star Industry Co., Ltd. Mutual directorship 46 40 28 22 Thai Takeda Lace Co., Ltd. Same shareholder company 17 9 6 3 Wacoal Corporation The major shareholder company 21 7 21 7 Others 24 17 24 16
Total trade account payables 273 207 359 317
Others Accrued royalty fee
Wacoal Corporation The major shareholder company 51 42 51 42 Others 1 1 1 1
Significant transactions with the related parties for the quarters ended March 31, are as follows:
Baht ’000 Relationship CONSOLIDATED SEPARATE 2007 2006 2007 2006
Sales of raw materials to subsidiaries Subsidiary companies - - 69,496 158,861 Sales of raw materials and finished products Mutual major shareholder 730,502 789,087 729,636 787,636
to related parties The major shareholder 57,797 147,688 57,007 144,010 Mutual directorship 6,571 6,648 6,571 6,648 Purchase finished products from subsidiaries Subsidiary companies - - 333,288 355,649 Purchase raw materials and finished products Mutual major shareholder 212,837 241,174 135,477 194,923
from related parties The major shareholder 37,023 67,574 37,023 67,574 Mutual directorship 34,072 33,945 20,288 31,120 Others
Hire of work income & rental income 7,395 6,672 4,302 3,305 Wage hire of work & rental expense 4,905 7,120 5,078 7,323 Royalty fee 10,220 11,587 10,220 11,587 Interest income 487 554 487 554 Dividend received 6,931 5,258 6,931 5,258
The Company and subsidiaries sell finished products to related companies at the price and conditions as charging to other customers. The Company sells raw materials to subsidiaries and related companies at cost. The Company purchases raw materials and finished products from related companies at the price and conditions as being charged by other suppliers. The Company pays royalties based on percentage of sales (see Note 17). The Company pays other services in accordance with conditions in the agreement.
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17. TECHNOLOGY LICENSE AGREEMENT On January 1, 1995, the Company entered into a technology license agreement with Wacoal Corporation, the major shareholder company, for the latter to grant the use of trademark and provide technical know-how for manufacturing the products set forth on the agreement. The Company has to pay royalty fee of 2% of net sales for such products. The agreement has been effective for a period of 5 years as from January 1, 1999 until December 31, 2003, renewable for 5 years.
18. CONTINGENT LIABILITIES AND COMMITMENTS
Contingent liabilities and commitments are as follows:
UNIT : MILLION BAHT
CONSOLIDATED SEPARATE As at As at As at As at March 31, December 31, March 31, December 31, 2007 2006 2007 2006
Contingent liabilities in respect of guarantees issued on behalf of - Related parties 6.66 6.90 6.66 6.90 - Others 13.00 13.00 13.00 13.00
Bank’s letters of guarantee issued on behalf of the Company 19.75 24.71 17.74 22.71
19. BUSINESS SEGMENT INFORMATION
Business segment information of the Company and subsidiaries for the quarters ended March 31, by geographic are as follows:
UNIT : MILLION BAHT CONSOLIDATED Domestic sales Export sales Total 2007 2006 2007 2006 2007 2006
Revenues from sale of goods and rendering of services 628.57 705.11 202.61 281.50 831.18 986.61
Segment result 68.80 94.20* 2.11 1.58* 70.91 95.78 Unallocated expenses (0.85) (8.05) Other income 55.94 31.60 Income tax (28.87) (23.99) Net profit of minority interest (0.01) (0.01) Net profit 97.12 95.33
* The Company has reallocated the selling and administrative expenses to be more appropriate from previously
disclosed.
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UNIT : MILLION BAHT SEPARATE Domestic sales Export sales Total 2007 2006 2007 2006 2007 2006
Revenues from sale of goods and rendering of services 678.10 837.38 201.81 277.82 879.91 1,115.20
Segment result 36.71 61.30 0.97 (3.94) 37.68 57.36 Unallocated expenses (0.85) (5.91) Other income 53.77 28.41 Income tax (22.20) (16.43) Net profit 68.40 63.43
The Company is unable to allocate the fixed assets into each segment due to joint-production of the products.
20. PROMOTIONAL PRIVILEGES
Subsidiary companies have been granted promotional privileges from the Board of Investment as the following summary:
Company name
Items Wacoal Lamphun Wacoal Kabinburi Pattaya Kabinburi Project No. 1 - Certificate no. 1198/2536 1197/2536 1200/2536 - Issued Date October 22, 1993 October 22, 1993 October 22, 1993 - Exemption from income tax for 8 years Jan 1, 1994 - Dec 31, 2001 Jan 1, 1994 - Dec 31, 2001 Jan 1, 1994 - Dec 31, 2001 - Income tax reduction of 50% of normal
rate for 5 years Jan 1, 2002 - Dec 31, 2006 Jan 1, 2002 - Dec 31, 2006 Jan 1, 2002 - Dec 31, 2006 Project No. 2 - Certificate no. 1075/2544 1074/2544 1649 (1)/2544 - Issued Date January 24, 2001 January 24, 2001 October 11, 2001 - Exemption from income tax for 8 years Jul 1, 2001 - Jun 30, 2009 Jun 1, 2001 - May 31, 2009 Jan 1, 2003 - Dec 31, 2010 - Income tax reduction of 50% of normal
rate for 5 years Jul 1, 2009 - Jun 30, 2014 Jun 1, 2009 - May 31, 2014 Jan 1, 2011 - Dec 31, 2015 - Exemption from import duties
for machineries Jan 24, 2001 - Jan 24, 2003 Jan 24, 2001 - Jan 24, 2003 Oct 24, 2001 - Oct 11, 2004
The above three companies thus have to comply with the terms and conditions as stipulated in the promotional certificates.
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21. RISK MANAGEMENT POLICIES FOR ASSETS AND LIABILITIES IN FOREIGN CURRENCIES
The Company and subsidiaries have adopted a policy to cover foreign exchange exposure of assets and liabilities in foreign currencies whereby the Company and subsidiaries will deposit money received from sales in foreign currencies into banks for payment of expenses and creditors in foreign currencies. Significant assets and liabilities of the Company and subsidiaries in foreign currencies are as follows:
BAHT’000 Term of CONSOLIDATED SEPARATE
Description Receipt/ AMOUNT AMOUNT Payment Days USD YEN HKD EURO THB USD YEN HKD EURO THB
As at March 31, 2007 Cash and cash equivalent - 41 1,602 - - 1,888 41 1,602 - - 1,888 Current investment - - - 1,500 - 6,657 - - 1,500 - 6,657 Trade account receivables 30-120 2,052 19,914 - 20 78,188 2,052 17,244 - 20 77,400 2,093 21,516 1,500 20 86,733 2,093 18,846 1,500 20 85,945 Trade account payables 30 253 45,678 9 5 22,847 253 45,678 9 5 22,847 As at December 31, 2006 Cash and cash equivalent - 41 7,784 - - 3,798 41 7,784 - - 3,798 Current investment - - - 1,500 - 6,895 - - 1,500 - 6,895 Trade account receivables 30-120 707 70,103 - 11 34,467 707 70,103 - 11 34,467 748 77,887 1,500 11 47,160 748 77,887 1,500 11 47,160 Trade account payables 30 13,952 5,989 69 1,424 21,434 13,952 5,989 69 1,424 21,434
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22. SUBSEQUENT EVENTS
The Company and its subsidiaries’ shareholders meetings approved dividend payment and set aside general reserve as follows:
2007 2006 Companies Date of Baht Total General Date of Baht Total General
shareholders’ per share amount Reserve shareholders’ per share amount Reserve meeting (Million (Million meeting (Million (Million Baht) Baht) Baht) Baht) Thai Wacoal Public Company Limited April 23 1.30 156.00 19.86 April 24 1.10 132.00 18.71 SR.W. Garment Co., Ltd. April 27 400.00 80.00 3.49 April 25 300.00 60.00 3.21 Wacoal Kabinburi Co., Ltd. April 27 84.00 42.00 2.31 April 25 70.00 35.00 3.65 Wacoal Lamphun Co., Ltd. April 27 100.00 50.00 2.57 April 25 140.00 70.00 2.31 Pattaya Kabinburi Co., Ltd. April 27 175.00 35.00 1.61 April 25 150.00 30.00 1.40
Dividends in the year 2007 are the appropriation of net profit for the year 2006, and will be paid in May 2007. The Company and its subsidiaries have appropriated a portion of retained earnings for the general reserve for their business activities in the future. The exact objectives of such reserves have not been specifically identified.
23. APPROVAL OF FINANCIAL STATEMENTS
These interim financial statements have been approved for issue by the audit committee on May 8, 2007.