- Impairments are done in accordance with the relevant accounting standards. - For goodwill, kindly refer to Note 10. Whether further impairments are needed will depend on the annual impairment test to determine the value in use and fair value less cost of disposal, which includes obtaining independent professional valuer’s opinion.
- However, do note that impairments do not impact the cash flows, as it is only accounting implications.
19. The Group has RM102 m as at 31 March 2022, but it was raised through Private Placement and Rights Issue undertaken during FY21 and FY20 of RM129.5 m and RM254.3 m respectively. How can the Company states that its financial position remained healthy when it is not able to raise funding internally for its operations and expansion activities from its current businesses?
- The Power infrastructure and Utilities Projects undertaken by JAKS are generally capital- intensive in nature, such as the power plant in Vietnam which has started to contribute earnings.
- As such, all decisions in relation to the capital structure to fund our projects are evaluated extensively to ensure they are undertaken in the best interest of the company.
- We are of the view that the Group’s debt to equity ratio is considered low as compared to its peers.
The so called " low gearing ratio" is in fact motivated in disguise due to its massive share capital of 2.9m which has been accumulated through massive RI and PP over the years.
Despite of injections by the investors via RI and PP ,the investors are not properly rewarded through dividend payouts and capital gains for their investmsnt ( capital loss now) ,the investors are believed not to be keen to subscribe for RI and PP any more.Hence, it is foreseen that the company will be faced with difficulties for fund raising for any upcoming projects. ----‐----‐------------------------ Johnchew5
The so called " low gearing ratio" is in fact motivated in disguise due to its massive share capital of 2.9m which has been accumulated through massive RI and PP over the years.
Despite of injections by the investors via RI and PP ,the investors are not duly rewarded through dividend payouts ( never payout since listing) and capital gains for their investmsnt ( capital loss now). For these reasons , the investors are believed not to be keen to subscribe for RI and PP any more. Hence, it is foreseen that the company will be faced with difficulties for fund raising for any upcoming projects. There is a valid reason (s ) why the current share price is depressed. ----‐----‐------------------------ Johnchew5
Given the so called low gearing ratio of 37.5% , the company can still resort to external borrowings. However, it remains to be seen if the financial institutions are keen to lend to them or not given the pathetic current market price.
What is already rotten is already rotten .No matter how you hard you hype on it , it is futile. Once bitten twice shy , twice bitten never try. It is as simple as that....
When things are not right and fishy , they should be exposed and leave no stone unturned for goodness sake. The investors are not stxpid , they are discerning to see the goodness and otherwise in the company.
Don't worry too much on this stocks. 2 types of fallacy in investing; overthinking / over analysing and buy something that you don't understand. At this price level, it is a low risk play. All the naysayers, I will prove my point. Thank you ;)
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Asengkianjoo
618 posts
Posted by Asengkianjoo > 2023-08-08 17:26 | Report Abuse
other than cash flow , talk something interesting lah ......
hari-hari cash flow ,...cash flow ..... and hari hari market reply nonsense... nonsense ....