NewsResponse To Query From Singapore Exchange Securities Trading Limited ("SGX-ST")
BackMar 20, 2012
| Title | RESPONSE TO QUERY FROM SINGAPORE EXCHANGE SECURITIES TRADING LIMITED ("SGX-ST") | |
| Subject Of Query | On Financial Statements | |
| Description | The Board of Directors of Stamford Tyres Corporation Ltd (the Company") wishes to provide the following information in response to SGX-ST's query on 14 March 2012 with regard to the Company's financial results for the third quarter ended 31 January 2012. Question 1: Prepayments and advances of the Group increased from S$2.16 million as at 30 April 2011 to S$5.42 million as at 31 January 2012. Please explain the increase. Company's reply: The increase in prepayments and advances are mainly due to prepayments made to suppliers in order to secure tyre production orders and refundable "Value Added Taxes" (VAT) paid by the operating subsidiaries of the Group during the financial period as a result of increase in business activities. Question 2: We note that the Group has derivatives amounting to S$273,000 as at 31 January 2012 (30 April 2011: S$1.21 million). Please elaborate on the nature of such derivatives and the rationale for entering into such derivatives. Company's reply: The Group's trading subsidiary companies are exposed to movements in foreign currency rates arising from the purchases of goods from suppliers and sales made to customers located in several countries. As part of the Group's foreign exchange risk management policy, foreign exchange forward contracts are used by the subsidiary companies to manage the foreign currency exposure arising from their trading activities. The derivatives referred to above relate to foreign exchange forward contracts entered into by the Group. By Order of the Board Lo Swee Oi Company Secretary 20 March 2012 |
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