BIGC: Annual Report 2003

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Annual Report 2003

Transcript of BIGC: Annual Report 2003

  • 2546 ()

  • 17

    More than 17 million bahtBig C Foundation has been supporting the educationof Thai children for brighter future

    2,000

    More than 2,000 million bahtBig C and our customers have been helping local developmentby paying local tax

    Working For Dreams, Smiles and the Happiness of Thai Society

    1,700

    More than 1,700 million bahtBig C has been distributing income to our local staffs

    BIGGY ......

    .............Hi, my name is BIGGY. I am glad to tell you all.

    You can be sure you get everyday low price goodseverytimes you go to shopping at Big C.

  • C O N T E N T

    Message from Chairman of the Board

    Honorary Chairman and Board of Directors

    Audit Committee and Audit Report

    Executive Officers

    Board of Directors Report

    Education and Working Experience of Directors and Executive Officers

    General Information

    Shareholders and Subsidiaries

    Business in Big C

    Significant Change and Future Trend

    Big Cs Branches and Head-to-Head Competitors

    Risk Factor

    Summary of Financial Data

    Analysis of Financial Position and Operating Result

    Management

    Related Company Transactions

    Financial Statements

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    Message form Chairman of the Board

    10 2546 38,214 2545 42,341 2546 10.8% 1,412

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    During the past decade that Big C has had the opportunity to servethe public, it has become renowned as a complete super center on thebasis that every merchandise imaginable is available, offering good qualityand affordable prices which enabled Big C to operate continuously withsatisfactory results during the last ten (10) years. This is an indicationthat this new retail concept has successfully been accepted whereby inthe year 2003, Big C Supercenter has seen a growth in earnings fromthe previous year of Baht 38,214 Million to Baht 42,341 Million or 10.8percent, achieving net profits of Baht 1,412 Million. The Company shalltherefore continue to enhance its strategies in the sales of inexpensivegoods with acceptable quality, complemented by high standards of servicein order to create even higher satisfaction for the consumers.

    In addition to the above strategies, Big C has realized theimportance of the participation and development of community services bywhich the Company was the first retail outlet to give tax return directly to thepublic on a continuous basis since its conception. In 2003, Big C has for thefourth year supported the project One Tambol, One Product by allowing stallsto be set up for sales within all branches of Big C Super Centers locatedaround the entire Kingdom. Furthermore, special shows, demonstrations andsales of regional knowledge-related items have been permitted on occasionwithin the grounds of Big C without charge. The Company has also initiatedthe development of education for Thai youths by setting up the Big CFoundation during which in the year 2003, the Foundation has organizedmany related projects such as the construction and donation of Big CBuilding 1 to Nareenukool School II in Ubol Rachathanee Province, theconstruction and donation of Big Cs Basketball Field for youths atLumpini Park in Bangkok, as well as donations of educational books, schoolequipment, student uniforms, computers and, in particular, the provision ofeducational funds for schools in remote areas of Thailand.

    The Companys plan for the year 2004, besides the expansion ofnew Big C Super Center branches to reach the demands of consumers in allareas, as well as capture a wider range of market share, particularly thethree new branches with prime locations which are Chacherngsao, Samrongand Pattanee prioritized in this order, Big C has also placed emphasis on thehighest standards of quality management by maximizing on sales volume,however, with lower cost of management.

    With proficient management combined with the Companyslargest shareholders which are the Casino Group and Central Group, whoboth have had many years of experience in the retail industry, together withBig Cs main target to develop business capacity in line with the Thai socialcommunity, I am confident that Big C in the year 2004 will maintain tocapture its market share of consumers with the highest level ofsatisfaction which is vital to the strong competition, and also capable ofachieving our objective in every aspect of the business plan. Shareholderstherefore may be assured of even greater profits in the year 2004.

    (Mr. Suthichart Chirathivat)Chairman of the Board

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  • 3ANNUAL REPORT BIG C SUPERCENTER PUBLIC COMPANY LIMITED 2003 >>

    Honorary Chairman and Board of Directors

    1.

    Mr. Vanchai ChirathivatHonorary Chairman

    2.

    Mr. Suthichart ChirathivatChairman of the Board

    3. -

    Mr. Jean-Michel BARGEDirector

    4.

    Mr. Pierre Bruno Charles BouchutDirector

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    Mr. Jacques Dominique EhrmannDirector

    6.

    Mr. Tos ChirathivatDirector

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    Mr. Andre Claude Luc MercierDirector

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    Mr. Gerard Roger DrevelleDirector

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    Mr. John Sian Zu-LinDirector

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    Mr. Yves Bernard BraibantDirector, Chief Executive Officer & President

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    Mr. Nontaphon NimsomboonIndependent Director, Chairman of the Audit Committee

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    Ass.Prof.Dr. Chiradet OusawatIndependent Director, Audit Committee

    13. . ,

    Dr. Rongphol CharoenphandhuIndependent Director, Audit Committee

    14.

    Mr. Chirstophe GuillonDirector

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    3ANNUAL REPORT BIG C SUPPERCENTER PUBLIC COMPANY LIMITED 2003 >>

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    Report of the Audit Committee

    To : The Board of Directors,Big C Supercenter Public Company Limited

    The audit committee, appointed by the companysboard of directors on the 14th February 2003 for a3-year term, comprises of:

    1. Mr. Nontaphon NimsomboonChairman of the Audit Committee

    2. Assoc.Prof.Dr.Chiradet OusawatMember of the Audit Committee

    3. Dr. Rongpol CharoenphandhuMember of the Audit Committee

    The internal auditor serves as secretary of theaudit committee.

    The audit committee held 4 meetings during theyear 2003. The external auditor, the internal auditor andthe vice president for accounting and finance attendedall audit committee meetings. The high raking executivesfrom the companys legal and information processingdepartments were also called to attend when the auditcommittee felt the need of their appearances.

    Mr. Nontaphon NimsomboonChairman of Audit Committee

    . . Ass. Prof. Dr. Chiradet OusawatMember of the Audit Committee

    . Dr. Rongphol CharoenphandhuMember of the Audit Committee

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  • 5ANNUAL REPORT BIG C SUPERCENTER PUBLIC COMPANY LIMITED 2003 >> 5ANNUAL REPORT BIG C SUPPERCENTER PUBLIC COMPANY LIMITED 2003 >>

    2546 1.

    Summary of significant issues as discussed inthe audit committee meetings during the year are thefollowings:1. Review of the interim financial statements and

    audit results of the annual financial reports.At the end of the review of each interim

    financial statements, the audit committee holdsits meeting to listen to the external auditorspresentation of his findings from review or auditof the companys interim or annual financialreports as the case may be. At the request ofthe audit committee, the external auditor alsobrought about his observations of any weaknessesof internal controls detected along with hisrecommendations on corrective measures.Signif icant accounting adjustments alsodiscussed and mutually agreed upon in themeetings while insignificant ones waived. Thevice president for accounting and finance wasasked to provide the audit committee withsupplementary information needed for itsconsiderations and decisions. With theseprocedures, the audit committee assured itselfor the reliability of the companys interim andannual financial reports which were prepared inaccordance with Generally Accepted AccountingStandards and necessary off-balance sheetitems were adequate disclosed. The auditcommittee is of the opinion the Companysinternal financial and accounting controls arereasonably effective. After full discussion in theaudit committee meetings, the auditors reportalong with other related information were thensubmitted to the Companys board of directorstogether with the audit committees additionalobservat ions and recommendations. Indischarging its responsibility with this regard, theaudit committee keeps in mind that sufficientdue care is given to transparency practices aswell as interests of the investors and generaldecision makers were well taken care of.

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    2.

    3.

    2. System of internal controls.The audit committee cooperated with

    external auditor and assigned the internalauditor with task of evaluating the internalcontrols measures over operations other thanaccounting and finance, i.e., electronic dataprocessing, procurement of land, controls overrent of store sp