THE Minority Shareholders Watch Group (MSWG) seeks an explanation from Talam Transform Bhd (formerly Trinity Corp Bhd) during the company’s forthcoming annual general meeting (AGM) as to why the company allows long credit periods of two to four years for the settlement of its trade receivables.
Towards this end, MSWG pointed to non-current trade receivables amounting to RM25.67 mil (2020: RM23.88 mil) that is to be received by the company on July 31, 2023 and July 31, 2025 respectively.
“Please explain the nature of the non-current trade receivables that are receivable in the future,” requested the shareholder activism group. “How confident is the company of being able to collect all the non-current trade receivables amounting RM25.67 mil by the due dates?”
On a similar note, MSWG is also curious as to why Talam Transform incurred a high impairment loss of “Other Receivables” in its FY3/2021 to RM12.8 mil from RM1.9 mil during its previous financial year.
“Please provide a breakdown of the impaired loss of “Other Receivables” in FY3/2021,” requested MSWG. “What was the reason for the high impairment rate and is there any possibility that it can be reversed in the future?”
Talam Transform will stage its 96th AGM virtually on Sept 29 (Wednesday) at 11.30am via an online meeting facility provided by SS E Solutions Sdn Bhd.
Also in somehow similar situation is Bintai Kinden Corp Bhd whereby the group’s trade receivables of more than 91 days past due but not individually impaired rose significantly to RM19.6 mil in FY3/2021 (FY3/2020: RM1.3 mil).
“How much of the RM19.6 mil trade receivables have been collected to-date? What are the efforts by management to collect the long outstanding trade receivables?” asked MSWG.
“Has the group experienced slower collections of its trade receivables from customers in the construction business? What are the profiles of customers with long outstanding debts?”
Moving forward, the shareholder activism group also wishes to know from Bintai Kinden what is the likelihood of impairment in the current year given that the industry has been disrupted by the COVID-19 pandemic and MCO 3.0.
Bintai Kinden will stage its 27th AGM virtually on Sept 28 (Tuesday) at 10am via an online meeting platform provided by One Capital Market Services Sdn Bhd. – Sept 26, 2021
