DOMINANT ENTERPRISE BERHAD (221206-D)
(Incorporated in Malaysia)
 
                                                                                                                                              
SUMMARY OF KEY MATTERS DISCUSSED AT THE 26TH ANNUAL GENERAL MEETING HELD ON MONDAY, 27 AUGUST 2018

At the 26th Annual General Meeting of Dominant Enterprise Berhad held on 27 August 2018, all the resolutions as set out in Notice of the 26th Annual General Meeting dated 30 July 2018 were duly passed by way of poll by the shareholders and proxies present thereat.

The following are the key questions that were raised from the floor, which were  responded and addressed by the Board and Management:-


1.    The following questions were posed by shareholders pertaining to the Audited Financial Statements for the year ended 31 March 2018 (Agenda 1) :

 (a)    Trade and Other Receivables
(Page 77 – Note 14(d) of the Audited Financial Statements for year ended 31
March 2018)

A proxy enquired on the total amount for the past due, not impaired for more than 120 days and what are the actions that will be taken by the Company and why there was a sudden increase in bad debts (clarification: they were not bad debts but “past due not impaired” as provided in paragraph 3 below).

In answer to the enquiry, Mr. Owee Geok Choon (“Mr. Owee”) on behalf of the Board informed that the amount outstanding was reduced to RM990,000.00 as of 15 August 2018 . No impairment has been made as at to date as the Management is still actively negotiating with the relevant debtors. In the event that the Management decided to proceed  with legal action against these debtors, provision for doubtful debt will be made if the Debts cannot be subsequently recovered. Nevertheless, the Management would try their best to collect the debts.

In answer to a proxy’s enquiry on why there was a sudden increase of bad debt as compared to the financial year 2017 , Mr. Cha Aku Wai @ Sia Ah Kow (“Mr. Cha”) on behalf of the Board informed that the increase was not bad debt but was the outstanding amount not collected for more than 120 days. However, there is a possibility that this amount may turn into bad debt.

(b)    Borrowings
(Page 82 – Note 19 of the Audited Financial Statements for year ended 31 March 2018)

In answer to a query on what is Bankers’ Acceptances (“BA”), Mr. Cha on behalf of the Board informed that it is similar to Trust Receipts (“TR”). The difference is TR can pay anytime in advance before the due date whereas the BA must be cleared on the due date given .

Mr. Cha further added that BA has lower interest rate than TR. . The interest rate for TR now is around 7.8% p.a. whereas for BA is around 4.8% p.a. Therefore, the Company would be able to save 3% p.a. on interest.

In answer to a query on why the BA were 4.8% p.a. but the profit margin of the Company were 4%. p.a. Mr. Cha informed that the 4% is net profit margin after deducting the interest and expenses.

(c)    Growth Strategies
(Page 10 - Management Discussion & Analysis)

In answer to a shareholder’s enquiry on the expectation of having high growth in the future since the subsidiaries of Company have new markets opportunity in Thailand, Singapore and Vietnam, Mr. Owee on behalf of the Company informed that the management would try to increase the turnover and profit for the investment in foreign countries. He further informed that credit risk involved would be higher but they would be conservative in this area and try to minimise the credit risk as much as possible.

(d)    Debts from a customer of Akati Impex Pte. Ltd. (AKATI)

A proxy enquired on the status of the doubtful debts from a customer of AKATI. Mr. Teo Yu Chin on behalf of the Board informed that AKATI had received a payment of approximately SGD40,000.00 and 13.8 million in form of shares for the repayment of debts. However, the shares is still suspended and would be expected to trade again by end of September.

(e)    Foreign Currency Translation
(Page 92 – Note 32(a) of the Audited Financial Statements for year ended 31 March 2018)

Mr Cha informed that the Foreign Currency Translation of RM3,054,460 was reclassified mainly due to the investment in foreign subsidiary of the Company, where the exchange rate used at the time of investment is different with the current exchange rate as at financial year end.

(f)    Why the Company does not have any negative impact when the currency fluctuated?

Management informed that 50% of the raw materials are imported, while about 20% of the sales are exported. When the USD  weakened, the Company will  benefit. When the USD strengthened, it may affect the Company.

(g)    Does the Company do hedging?

Management informed that the Company did do some hedging via its foreign  currency account. Therefore, the Company can pay directly to the supplier to avoid currency fluctuation.


(2)        The following question was posed by shareholders pertaining to the Single Tier Final Dividend of 1.50 sen per share for the year ended 31 March 2018 (Agenda 2) :

(a)     Proposed the Company to have  a dividend policy

Management informed that the Company did not wish to be restricted by any dividend policy but will continue to pay dividend as long as the Company continue to perform.

For the rest of the items on the Agenda, there were no questions raised by the shareholders and proxies at the 26th Annual General Meeting of the Company.