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Questions submitted in advance for up-coming JRB’s 19th AGM

Sslee
Publish date: Wed, 23 Jun 2021, 08:45 AM
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Dear all,

Send as below. Whether the JRB Board will answer my question during AGM is up to them.

I had exercised my minority shareholder rights in holding the Board and External Auditor answerable, accountable and responsible.

 

Dear JAKS IR,
Please forward my questions submitted in advance for up-coming JRB’s 19th AGM on 29th June 2021 to the Board and external auditor for them to prepare the answers to the questions.
 
A. Refer Chairman’s statement page 12: For FYE2020, the Group achieved revenue of RM251.0 million and a loss before tax of RM110.3 million. The losses for FYE2020 were mainly attributed by the lower revenue and impairment provisions but offset to some extent by the recognition of RM89.1 million gains arising from the disposal of a subsidiary.
Page: 67:
Impairment loss on:
- Goodwill on consolidation: RM 52,000,000
- Amount due from subsidiary company:
- Trade receivables: RM 25,862,099
- Other receivables: RM 45,331,965
Question 1: External Auditor please give your opinion and explanation is it true that the disposal of 51% JIC to ICD for consideration of RM1.00 result in disposal gain of RM 89.1 million otherwise without the disposal of JIC the loss before tax for FYE 2020 will be RM (110.3 + 89.1) = RM 199.4 million?
Question 2: External Auditor please explain your auditing and verification procedures in assessing impairment loss on trade receivables: RM 25,862,099 and other receivables: RM 45,331,965?
Question 3: BOD, what are the salient features of the SPA (Sale and Purchase Agreement) on disposal of JSB 51% equity in JIC to ICD for consideration of RM1.00?
Question 4: BOD, is any impairment loss on goodwill and receivables were the result of disposal of 51% JIC to ICD for consideration of RM1.00?
Question 5: BOD, allowance for impairment of trade receivables: RM 25,862,099 and other receivable RM 45,331,965: Please provide the names of debtors, amounts owed, reasons for the debts and any specific action taken to recover the debts.
 
B. Refer page 114: Trade Receivables
Included in trade receivables of the Group is an amount of RM 35,539,792 (2019: Nil) due from a former subsidiary company. The amount is unsecured and interest free.
Included in trade receivables of the Group is an amount of RM 5,329,038 (2019: RM 5,348,543) due from one (2019: one) receivable jointly controlled by Directors of a subsidiary company. The amount is unsecured and interest free.
Included in trade receivable of the Group is an amount of RM 12,730,481 (2019: RM 13,052,835) due from one (2019: one) receivable which is a non-controlling interest of certain subsidiary companies. The amount is unsecured and interest free.
Page 117: Included in other receivables of the Group are the following:
(ii) an amount of RM39,669,110 (2019: Nil) due from a former related company. The amount is unsecured, interest free and repayable on demand
Question 1: BOD, please explain why receivables from former related company (RM 35,539,792 + RM39,669,110), jointly controlled by Directors of a subsidiary company (RM 5,329,038) and non-controlling interest of certain subsidiary companies (RM 12,730,481) are  unsecured and interest free?
Question 2: BOD, please explain how to make sure these unsecured and interest free receivables due from a former related company, jointly controlled by Directors of a subsidiary company and non-controlling interest of certain subsidiary companies will not end up as impairment loss in the future?
 
C. Refer Chairman’s statement page 12: The Group is very pleased to inform on the commercial operation of the first unit of the two 600 megawatt coal fired thermal power plant in Hai Duong province, Vietnam that had commenced towards the end of fourth quarter of 2020 and the second unit had commenced commercial operation in January 2021, ahead of the scheduled completion. With the completion of the Power Plant, going forward, the Group will then be able to generate recurrent concession earnings from the power generation.
The inclusion of JAKS in the recent shortlist of companies to undertake the Package 2 (50MW) large scale solar photovoltaic plants (“LSS4”) in Peninsular Malaysia
Question 1: When JRB can expect the first dividend and amount from JAKS Hai Duong Power Company Limited and what is JHDP dividend policy?
Question 2: With JHDP generating recurrent concession earnings and providing recurrent dividends to JRB when will JRB expect to give dividend to its shareholders?
Question 3: JRB had without fail needed yearly fund raising exercise either thro’ RI or PP. Can the management promise the current proposed Private Placement of up to 552,787,900 new ordinary shares in JRB will be the last fund raising exercise thro’ PP or RI?
Question 4: What is the total cost for Package 2 (50MW) large scale solar photovoltaic plants (“LSS4”) and the projected IRR?
 
D. Refer page 67: Share grant plan expense: RM 17,052,975
Question 1: Since share grant plan/granting free share to director/management resulted in expense/losses to the company thus is not in the best interest of company and shareholders. Will the BOD from now onward forbid granting free share to director/management since it is in breach of Companies Act 2016: Section 213: (1) A director of a company shall at all times exercise his powers in accordance with this Act, for a proper purpose and in good faith in the best interest of the company?
 
E. Refer page 158-162: Properties of The Group
30 lots of vacant freehold land Mukim 07, Seberang Perai Selatan, Pulau Pinang
Question 1:  When did JRB purchase these freehold vacant lands, how much was its cost and the intent purpose of these lands?
 
Thank you
 
Best Regards
Lee Soon Sheng
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Discussions
Be the first to like this. Showing 3 of 3 comments

i3lurker

I have the answer here:-

A I already told you
B How many times must I tell you?
C T told you already but you did not understand
D Share Price sensitive info so cannot be divulged
E Its P & C, If I tell you I will have to kill you.

2021-06-23 13:21

Sslee

Haha i3lurker,
My last year questions submitted in advance for JAKS 18th AGM were not answered during AGM because it fall into either of the following reasons:

A.in answering the questions, it would not result in a fair and orderly dissemination of information to the market as required under the Bursa listing rules;
B.confidential and/or price sensitive in nature;
C.involves speculation or matters that cannot be ascertained accurately;
D.beyond the scope of shareholder communication;
E.Inappropriate, unreasonable, or irrelevant and hence the Company is not obligated to answer the question; or
F.Inaccurate interpretation or misunderstanding of the facts and matters and hence does not warrant a response from the Company.

So this year please wish me good luck.

2021-06-23 13:48

i3lurker

btw fyi

businesses that are built on money laundering are not viable no matter how many years past history

they tend to move in the following usual predictable pattern

Political Corruption Money Laundering => Drugs Money Laundering => Terrorism Financing Money Laundering

at the end game terrorism financing money laundering stage, the auditors will move out.

and I am NOT talking about Jaks, of course

2021-06-24 10:03

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