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Besides organic growth,hypermarket giants has frequently embarked on acquisition trail to buy up other chains as a quick way for its expansion plan. ( refer earlier article on reasons for companies to go M&A trail.) Recently,reported in The Edge (6/10/06),there is this proposed acquisition by GCH Retail for Makro: “GCH Retail (Malaysia) [...] Standard &Poor’s Ratings Services recently assigned its ‘BBB-’corporate credit rating to AmanahRaya Real Estate Investment Trust (AmanahRaya),a real estate investment trust (REIT) in Malaysia. This stable outlook on AmanahRaya reflects the REIT’s stable rental income,long lease maturity profile,and a high level of tenant security deposits. Other factors included is the [...] Part 1 dealt with using accounts receivable for short term secured borrowings. Now,let’s look at converting our inventory into cash using it as collateral for cash loan. The loan value depends on the following: Marketability of the gooods;Price stability of the goods;Perishability of the goods Basically,there are few ways of doing [...] In the Balance Sheet,accounts receivables and inventory normally form a high proportion of our current assets. So how familiar are we with the utilization of our company’s current assets like accounts receivable and or inventory as collateral for short term secured borrowing? Incidentally,for any acceptable collateral,there must be price stability over time [...] This final part dealt with the incentives of being MSC accreditation and the application procedures to seek MSC status. Besides the earlier mentioned Bill of guarantees (part 1),the following are the incentives given: Financial Incentives ·Malaysian income tax exemption on statutory income for 5 years extendable to 10 years,or 100% investment tax allowance [...] |  FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four,Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.Also author to another very popular free educational accounting cum finance blog:http://basiccollegeaccounting.com under the branding of College Accounting Coach. | |||||
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