THE Minority Shareholder Watch Group (MSWG) is seeking an answer from AirAsia Group Bhd at the company’s forthcoming annual general meeting (AGM) over substantial increases in impairment charges for the group during its FY2020.
The impairment charges totaling RM2.02 bil were incurred across eight items, namely:
- Amount due from associates (RM264.07 mil)
- Amount due from related parties (RM615.58 mil)
- Trade receivables (RM53.54 mil) (FY2019: 5.41 mil)
- Other receivables (RM344.42 mil)
- Property, plant and equipment (RM43.67 mil)
- Right-of-use assets (RM552.29 mil)
- Finance lease receivables (RM90.03 mil)
- Investment in associates (RM59.27 mil)
“What are the main reasons for the substantial impairment charges for each item?” asked the shareholder activism group. “For each item, what is the likelihood of further impairment or reversal or recoverability, where applicable, in FY2021?”
AirAsia Group will stage its fourth AGM virtually on July 22 (Thursday) at 10am, via the TIIH Online website provided by Tricor Investor & Issuing House Services Sdn Bhd.
On a similar subject, MSWG is also seeking clarification from Time dotCom Bhd over an increase in the company’s net impairment on trade receivables to RM13.11 mil in FY2020, from RM8.95 mil in FY2019.
“What was the reason for the substantial increase in impairments? How much of these impairments have been recovered to-date?” asked the shareholder activism group. “What percentage of these impairments are expected to be non-recoverable? Are impairments expected to increase, going forward?”
Time dotcom will stage its 24th AGM virtually on July 22 (Thursday) at 10am via https://web.lumiagm.com from its head office at the HICOM Glenmarie Industrial Park in Shah Alam.
Elsewhere, MSWG also seeks an answer from Computer Forms (M) Bhd (CFM) if the latter has engaged in an open-tender exercise to receive quotes from third parties before concluding its deal with FCW Holdings Bhd pertaining to its proposed disposal of properties in Jalan Genting Klang, Kuala Lumpur (totaling RM91.1 mil) alongside the arising tenancy deals (totaling RM110,772/month).
“The proposed disposals and tenancies is deemed a related party transaction pursuant to Paragraph 10.08 of the Listing Requirements in view of the interests of certain directors and major shareholders of CFM and FCW,” MSWG pointed out.
CFM will stage a virtual extraordinary general meeting (EGM) on July 23 (Friday) at 10.30am via the TIIH Online website at https://tiih.online provided by Tricor Investor & Issuing House Services Sdn Bhd. – July 17, 2021.
https://focusmalaysia.my/agm-watch-airasia-queried-over-alarming-rise-in-impairment-charges/
