JB Foods

[freedom]

a few questions to Investor Central's questions:

1. Why would they translate their financial from Malaysian RM to Singapore Dollar? It does not make any sense at all.

2. The Co registered in Singapore is probably just a holding company only, what's the profit to be taxed in Singapore?

it is stated in the prospectus

1) "In addition, as our reporting currency is in RM, the financial statements of our Company which is recorded in its functional currency (being S$) will need to be translated to RM for consolidation
purposes. As such, any material fluctuations in foreign exchange rates at the end of each financial year will result in translation gains or losses on consolidation. Any such translation gains or losses will be recorded as translation reserves or deficits as part of our shareholders’ equity."

I am not too sure what it means by functional currency and reporting currency

2)"Our Company was incorporated in Singapore on 3 January 2012 under the name “JB Foods Pte. Limited” as a private limited company under the Companies Act as an investment holding company. On 3 July 2012, our Company was converted into a public company limited by shares and our name was changed to “JB Foods Limited”. To facilitate the listing of our Company on the Official List of the
SGX-ST, the Restructuring Exercise was undertaken to make JB Cocoa our wholly-owned subsidiary."

Singapore's taxation is also mentioned in pg 186 and I am not too sure how the structure will affect taxation. The subsidiary will definitely be taxed in Malaysia but what about the holding company in Singapore? Any tax expert around?

my guess is that there is little or none profit in the Singapore holding company, so the Singapore tax should not be a big question.

I am no tax expert. please correct me if I am wrong.