| RESPONSES TO SGX QUERIES :: ON FINANCIAL STATEMENTS :: RESPONSE TO SGX QUERY ON THE FIRST QUARTER RESULTS ANNOUNCEMENT FOR THE PERIOD ENDED 31 MARCH 2013 | |
| * Asterisks denote mandatory information | |
| Name of Announcer * | MULTI-CHEM LIMITED |
| Company Registration No. | 198500318Z |
| Announcement submitted on behalf of | MULTI-CHEM LIMITED |
| Announcement is submitted with respect to * | MULTI-CHEM LIMITED |
| Announcement is submitted by * | Han Juat Hoon |
| Designation * | Director |
| Date & Time of Broacast | 03-May-2013 17:25:14 |
| Announcement No. | 00088 |
| Price Sensitivity | Yes |
| >> Announcement Details | |
| The details of the announcement start here ... |
| Announcement Title * | RESPONSE TO SGX QUERY ON THE FIRST QUARTER RESULTS ANNOUNCEMENT FOR THE PERIOD ENDED 31 MARCH 2013 |
| Subject of Query * | On Financial Statements |
| Description | Multi-Chem Limited (the "Company") refers to the First Quarter Results Announcement for the period ended 31 March 2013 released by the Company on 29 April 2013 and the query received from the Singapore Exchange Securities Trading Limited ("SGX") on 2 May 2013. The Company's response is as follow: Questions from SGX: a) We note on Page 5 of the results announcement that 'Prepayments' has increased by approximately 242.4% from S$1.381 million to S$4.728 million when 'Revenue' has decreased by 9%. In respect of the above, please provide the following information: (i) Reasons for the increase in 'Prepayments' (ii) Breakdown on major items contributing to increase in 'Prepayments' (b) We note on Page 5 of the results announcement that 'Trade and other payables' has decreased by approximately 27.4% from S$46.944 million to S$34.067 million when 'Cost of Sales' has decreased by only 8%. In respect of the above, please provide the following information: (i) Reasons for the decrease in 'Trade and other payables' (ii) Breakdown on major items contributing to decrease in 'Trade and other payables' Company's Reply: (a) The reasons for the increase in 'Prepayments' as follow: 1. $1.5m is a wrong classification from 'Trade and other receivables' to 'Prepayments'. This is due to advance payment to vendors for additional discount which should be classified as 'Trade and other receivables' instead of 'Prepayments'. 2. $1.5m is a wrong classification from 'Cash and cash equivalents' to 'Prepayments'. This is due to cash in transit between related companies which should be classified as 'Cash and cash equivalents' instead of 'Prepayments'. 3. $300,000 is due to 'Prepayments' for insurance and ERP license fees at the beginning of the year. (b) The reason for the decrease in 'Trade and other payables' is because of reduction in purchase of inventories due to lower sales in 1Q2013. This is in line with the reduction in 'Inventories' by 28.7% from $29.6m to $21.1m. Attach is the revised balance sheet and cash flow statement. By Order of the Board Han Juat Hoon Director 3 May 2013 |
| Attachment(s) | 20130503_172514_M06_1A3DE6F60983112748257B6000328E6B.1.pdf |
© 2013 SGX News
