Another tranche of Private Placement price was fixed at 95 sen. Private placement is unfair to other shareholders as they are not given the opportunity to subscribe to cheap discounted shares. For the connected few that get chance to subscribe these cheap shares can make easy gains very quickly without risk.
According to the 2020 Annual Report, Note 6(a), in relation to the Ladang Tanah Merah WTE plant, "During the financial year, the borrowing costs capitalised in the intangible asset amounted to RM23,522,000 (2019: RM28,422,000)"
According to the Independent Auditor's Report in the same Annual Report, the carrying value of the WTE intangible asset was RM871M.
When the WTE plant is brought on line, the intangible asset will have to be amortized instead of accumulated. Assuming this is done linearly over 19 years (the 19 years being a complete guess on my part), this will be an outflow of RM871/19 or RM45.8M per annum.
At the same time, the interest, which is presently being capitalised, will have to be expensed, which will be an additional expense of RM23.5M.
If you add the interest to the amortization, when the WTE plant is brought on line there will be additional expenses of RM69.3M.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
lloydlim
3,971 posts
Posted by lloydlim > 2021-10-21 00:46 | Report Abuse
Sudah wake up?