Further to the MASNET Announcement No. 85 on Full Year Financial Statement and Dividend Announcement for the year ended 31 December 2002, made on 26 March 2003 and in response to query from the Singapore Exchange Limited, the Company would like to address the following:-
Query
We note from the Full Year Results that receivables due from immediate holding company increased significantly from S$ 698,000 in the previous year to about S$ 2.6 million in FY2002 despite a slight decrease in the Group's turnover. In this regard, kindly provide an explanatory note on the factors which contributed to the aforesaid increase.
Reply
The balance due from immediate holding company is a net balance of freight and surcharges collected and the expenses incurred by the immediate holding company on behalf of the Company.
The immediate holding company is acting as a general agent of the Company for all ports in Indonesia.
There was a delay in settlement of the outstanding amount due from immediate holding company at the end of December 2002 mainly due to the increase in the port charges and stevedoring expenses as a result of the increase in the port tariffs in the major ports in Indonesia in September and October 2002. The agent had to settle these additional expenses on behalf of the Company and needed additional working capital, hence the delay of payment to the Company incurred.
Subsequent to the year ended 2002, the balance due from immediate holding company has been settled.