The drop from operating expenses mainly due to decrease in director remuneration and written off of trade receivables. Refer to audited report 2015 page 65 note 23.
For company director drop from 13.8mil to 7.7mil and for other director drop from 14.8mil to 7.9mil. Also, bad debt written off have been decrease from 7.7mil in 2014 to 700k in 2015. Hence the improve in profit is not relating to strong singapore dollar. Hence total effect of 20mil which can be fully reflected the full year profit for financial year 2015.
For director remuneration reduction, i might be temporarily as u cannot control what they wan to pay to the director. Written off reduction i tink mainly due to change of auditor. As written off of trade receivables is determine by auditor, in order to secure this company audit work, auditor might ignore some of the allowance for impairment for trade receivables.
You must remember that although they earning singapore dollar, they also paying the staff cost in singapore dollar.
Increase in profit due to reduce in impairment and director fee not necessary good as it is not a business gain. Anyway this is my opinion trade at your own risk :)
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pingdan
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Posted by pingdan > 2015-07-20 14:11 | Report Abuse
The drop from operating expenses mainly due to decrease in director remuneration and written off of trade receivables. Refer to audited report 2015 page 65 note 23.
For company director drop from 13.8mil to 7.7mil and for other director drop from 14.8mil to 7.9mil. Also, bad debt written off have been decrease from 7.7mil in 2014 to 700k in 2015. Hence the improve in profit is not relating to strong singapore dollar. Hence total effect of 20mil which can be fully reflected the full year profit for financial year 2015.
For director remuneration reduction, i might be temporarily as u cannot control what they wan to pay to the director. Written off reduction i tink mainly due to change of auditor. As written off of trade receivables is determine by auditor, in order to secure this company audit work, auditor might ignore some of the allowance for impairment for trade receivables.
You must remember that although they earning singapore dollar, they also paying the staff cost in singapore dollar.