BIGC: Annual Report 2002

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Annual Report 2002

Transcript of BIGC: Annual Report 2002

  • () 7 89/36 . 10330. 0-2655-0666 . 0-2655-5801-2

    Big C Supercenter Public Company Lim ited7 th Floor Univest Building, 89/36 Rajdamri,Rd., Lumpini, Pathumwan, Bangkok, 10330Tel. 0-2655-0666 Fax. 0-2655-5801-2

    A C e n t r a l - C a s i n o p a r t n e r s h i p

    A n n u a l R e p o r t 2 0

    0 2

    Big C Supercenter Public Company Lim

    ited

    Big C Supercenter Public Company LimitedA n n u a l R e p o r t 2 0 0 2

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    2 5 4 5

  • ()Big C Supercenter Public Company Limited

    PATTAYA RAYONG

    BANGKOK

    MIDDLE NAKORNPATHOM

    LOPBURI PETCHBURI

    PITSANULOKE CHIANGRAI

    LAMPANG CHIANGMAI

    NORTH

    UDONTHANI KHONKAEN

    NAKORNRATCHASIMA UBONRAJTHANI

    SURAT THANI HAT YAI

    PHUKET

    NORTHEAST

    SOUTH

    EASTM o r e T h a n J u s t L o w P r i c e s

    WONGSAWANG CHANGWATTANA

    RATBURANA RANGSIT

    RAJDAMRI BANGPLEE

    RATTANATHIBET 2 RAMA II

    HUA-MAK SAMUTPRAKARN

    DONMUANG FASHION ISLAND

    SUKSAWAT BANGNA

    LADPHRAO DAOKANONG

    TIWANON

  • 1.................................................................................................................. ANNUAL REPORT BIG C SUPPERCENTER PUBLIC COMPANY LIMITED 2002

    C O N T E N T

    Message from Chairman of the Board

    Honorary Chairmanand Board of Directors

    Audit Committeeand Audit Report

    Board of Directors Report

    Executive Officers

    Education and Working Experienceof Directors and Executive Officers

    General Information

    Shareholders and Subsidiaries

    Business in Big C

    Significant Changeand Future Trend

    Big Cs Branchesand Head-to-Head Competitors

    Risk Factor

    Summary of Financial Data

    Analysis of Financial Position andOperating Result

    Management

    Related Company Transactions

    Financial Statements

    2

    3

    4

    8

    9

    10

    16

    24

    26

    32

    38

    40

    44

    48

    56

    80

    92

    2

    3

    4

    8

    9

    10

    17

    25

    27

    33

    39

    41

    45

    49

    57

    81

    128

  • 2 () 2545 ....................................................................................................................................

    Message form Chairman of the Board

    2545 32,637 2544 38,214 2545 17% 1,288 2545 4

    2546 4 2 36

    2546

    ( )

    The past year 2002 is regarded as another year in whichBig C had a satisfactorily successful operation result as can beseen from the companys sales rising from 32,637 million baht to38,214 million baht in the year 2002 or rising as much as 17%and had a net profit of as much as 1,288 million baht. However,Big C still continued developing the strategy of creating the highestsatisfaction for consumers by creating confidence, developingproducts and service continuously, as well as supporting andremunerating the society by being the first and only one retailbusinesses to return the taxes to the local community directly andsupporting one sub-district one product through formaldistribution in every branch of Big C all over the country. In additionto this, Big C also initiated the idea of promoting the education ofThai youths by establishing Big C Foundation in the past monthsof May, including having opened 4 more branches in 2002.

    As for the operation plan in 2003, Big C alsoemphasizes adding more new branches in order to supplycustomers demands thoroughly and cover more of themarketing share, particularly the areas with potentials for 4more branches, the first of which will be opened in late March,i. e. Pattaya Branch 2, and other ones will be opened one afteranother, namely, Rajdamri Branch, Nakhon Sawan Branchand Saphan Khwai Branch respectively, which give Big C anincrease of 36 branches by the end of the current year.

    Although in 2003 competition in the retail business stillhas an ever rising trend, nevertheless with the potentials of thejoint management of the major shareholders, namely, CasinoGroup and Central Group, both of whom have long years ofexperience in retail business, as well as the sincerity to becommitted to development and have the clear goal of Big Csgrowth coupled with the Thai society, I believe that this yearBig C will still be able to win the hearts of consumers, who arean essential factor in competition, and able to achieve thetarget in every work plan. The shareholders can therefore restassured that they will certainly receive an even higher return.

    (Mr. Suthichart Chirathivat)Chairman of the Board

  • 3.................................................................................................................. ANNUAL REPORT BIG C SUPPERCENTER PUBLIC COMPANY LIMITED 2002

    Honorary Chairman and Board of Directors

    1. Mr. Vanchai ChirathivatHonorary Chairman

    2. Mr. Suthichart ChirathivatChairman of the Board

    3. Mr. Christian Pierre CouvreuxDirector

    4. Mr. Pierre Bruno Charles BouchutDirector

    5. Mr. Etienne Pierre Raymond Ferrard SnollaertsDirector

    6. Mr. Tos ChirathivatDirector

    7. Mr. Andre Claude Luc MercierDirector

    8. Mr. Gerard Roger DrevelleDirector

    9. Mr. John Sian Zu LinDirector

    10. Mr. Daniel Armand PainDirector

    11. Mr. Yves Bernard BraibantDirector

    12. Mr. Nontaphon NimsomboonIndependent Director

    13. . . Ass. Prof. Dr. Chiradet OusawatIndependent Director

    14. . Dr. Rongphol CharoenphandhuIndependent Director

    2

    3 4 5

    6 7

    8 9 10

    11 12

    13 14

    1

  • 4 () 2545 ....................................................................................................................................

    Report of the Audit Committee

    ()

    () 17 2542 3 16 2545 3

    1.

    2. ..

    3. .

    To : The Shareholders ofBig C Suppercenter Public Company Limited

    The Audit Committee (to be referred to asAC hereinafter) of Big C Supercenter PublicCompany Limited has been first nominated andappointed by a resolution of the meeting of theCompanys Board of Directors on the 17th

    November 1999. The AC shall hold office ona 3-year term effective from the date ofappointment. The first term of office ended on16th November 2002. The AC is composed of 3independent directors as follow :

    1. Mr. Nontaphon NimsomboonChairman of the AC

    2. Asst. Prof.Dr. Chiradet OusawatMember of the AC

    3. Dr. Rongphol CharoenphandhuMember of the AC

    .

    Dr. Rongphol CharoenphandhuMember of Audit Committee

    Mr. Nontaphon NimsomboonChairman of Audit Committee

    . .

    Ass. Prof. Dr. Chiradet OusawatMember of Audit Committee

  • 5.................................................................................................................. ANNUAL REPORT BIG C SUPPERCENTER PUBLIC COMPANY LIMITED 2002

    2545 4 1.

    In 2002 the AC held 4 meetings, itinvites to the meetings the external auditor, theVice President for Accounting and Finance, theInternal Auditor and other top executives asthe AC deemed appropriate, including theManaging Director, the Legal DepartmentManager, the Information Department Managerwhose responsibilities relate to the matters andissues discussed at each meeting to providethe Committee with needed information andcomments. The significant matters evolved andbecame part of the agenda of the AC meetingsheld during the year are as follow :1. Discussion on the findings resulting from

    the review and audit of the quarterly andyear-end financial reports which wereperformed by the Companys externalauditor before presenting them to the Boardof Directors and subsequently to theShareholders Meeting. The issues discussedinclude, among other things, the adequacyof informative disclosures, transactionswith related parties, commitments andcontingent liabilities, possible conflicts ofinterest as well as fair presentation of thefinancial reports in accordance with theapplied generally accepted accountingstandards, regulations and requirements ofthe relevant regulating authorities.

  • 6 () 2545 ....................................................................................................................................

    2. (Management Information System)

    3.

    2. Coordinate with and give recommendationsto the companys external auditor to ensurethat the scope of auditors work also coverreviewing whether there exist anyextravagant, waste, weaknesses of internalcontrols. In cases where those weaknessesand irregularities are found, remedialactions would be recommended by ACfor their proper implementation. The ACalso discussed external auditors findingsresulting from the review of the Companysmanagement information system andendorsed the appropriate alternative ofcorrective measures for control improvementsto the responsible staff for implementation.

    3. Comment , render opinions, giverecommendations regarding planning as wellas reviewing performance of the InternalAudit Office. Assist the internal auditor inconceptual and technical matters includingthe preparation of the annual internal auditplan, improvement of audit procedures andreport writing with the purpose of lifting thelevel of usefulness of the internal auditingfunction to be an important managementtool. In this regard, the AC is of the opinionthat the Internal Audit Office should begiven more independence to help make theOffice more beneficial to the Company.Changes can not happen in a shortperiod of time because of the fact that theCompany is a big entity and therefore it ishighly