Theory On Kenmark's Soaring Trade Receivables And Massive Provision Of Bad Debts

Got an extremely good reply from Richard Cranium on the posting A Deeper Look At Kenmark Losses

• How about this for a theory?
  
  1. They "moved" all the stocks to a friendly or a shell company, accounting for a significant rise in receivables.
  
  2. The sales figures subsequently dropped as there is no more inventory due to (1).
  
  It would be interesting to see where the stock went to i.e. which distributors/retailers has the largest intake. Won't surprise me if these are in China or place far away from Malaysian law.
  
  Just a hunch,

That's a pretty interesting theory or hunch. :D

Let me reuse the same frame as what I had posted earlier and put the focus on Sales, Inventory and TRADE PAYABLES.


I put in trade payables because sometimes sales do not come directly from a company's inventory. Meaning to say, sometimes a company could buy a product from another source and then re-sell that product.

The recent earnings again...

Feb 2010: Quarterly rpt on consolidated results for the financial period ended 31/12/2009
2009 Q3
Sales 101.441 million Net Profit 4.769 million Inventory 22.847 million Trade Payables 106.347 million.

Nov 2009: Quarterly rpt on consolidated results for the financial period ended 30/9/2009
2009 Q2
Sales 35.334 million Net Profit 3.718 million Inventory 28.241 million Trade Payabales 103.577 million.

Aug 2009: Quarterly rpt on consolidated results for the financial period ended 30/6/2009
2009 Q1
Sales 57.686 million Net Profit 1.013 million Inventory 38.687 million. Trade Payables 63.958 million!

(Moolah: OMIGOOOOOOSH! Jackpot!



Compare the inventory in this quarter versus what was reported on Nov 2009! See how inventory declined from 38.687 million to 28.241 million the next quarter. See how Trade payables soared from 63.958 million to 103.557 million!

How could the payables jumped so high? Sales this quarter was only 57.686 million and the next quarter sales plunged to 35.334 million???!!!! And payables increased by 39.599 million!

Questionable issue or what??? )

May 2009: Quarterly rpt on consolidated results for the financial period ended 31/3/2009
2008 Q4
Sales 38.775 million Net LOSS 0.084 million Inventory 30.853 million Trade payables 34.310 million!

(Moolah: WOW!

Trade payables in Q4 was only 34.310 million. The next quarter it was 63.958 million. And the next quarter it was 103.557 million. And the next quarter 106.347 million!!!!!!!!!!!!

Holy cow!!!)


And the following was from last night:

Last night, June 2010:
2009 Q4
Sales 18.762 million Net LOSS: 146.552 million Inventory 20.104 million Trade payables 83.958 million!!!!

WOW!

Exactly!

When one views the inventory and trade payables together, it paints one new ugly picture altogether!!!!

How now brown cow?????

Tell me if this is not sheer financial shenanigans!