seeking direction to a better life...Textile firm Ban Joo & Co, whose financial year-end has been changed to September from June, reported a loss of $15.1 million for the 15 months ended Sept 30, 2007 on Friday last (as compared to net loss of $35.2 million for the 12 months ended June 30, 2006).
The loss was due mainly to provision for impairment of trade debts and losses associated with the discontinuation of operations.
The management of Ban Joo has had a really difficult and busy year given the following series of actions in attempting to improve its fortune.
- A controversial share placement exercise completed in the middle of the year saw an injection of $3.6 million and has boosted the company's cash holdings. [refer to my earlier posting http://investingwithedgar.blogspot.com/2007/06/placement-of-shares-at-discount.html] Cash and cash equivalents stood at $6 million at the end of the period. [With the company incurring a loss of about a million dollars a month, the $6million will not last very long.]
- Somehow the management managed to reduce its bank borrowings and other current liabilities by $5.7 million [ I wonder how much is the total liabilities.]
- The company announced in October that it had completed a debt restructuring agreement with various financial institutions. [I wonder how were the various financial institutions convinced of its viability.]
- Lastly, the management has also changed its year end from June to Sep. [Again I wonder why. Did I miss its explanation for the change in year end date?]
1 comment:
I have just read the article entitled "Observations by the Financial Statements Review Committee" in Singapore Accountant May/Jun 2007 issue.
The committee highlighted the need for a company to provide reason for using a longer or shorter reporting period in the notes of the account.
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