QAF Limited says it has received an interim payment of approximately $4 million (or around RM12 million) from its insurance claims.
The company had made claims for the losses arising from the severe flooding in Peninsular Malaysia in December 2021 which affected one of its Malaysian factories.
To date, the company had claimed around $10 million under its consequential loss insurance policy.
The interim payment received will be recognised as an exceptional gain in the group’s financial results for the 2HFY2022. The payments from the insurance policy will be subject to Malaysian income tax, says the group.
The estimated tax liability arising from the receipt of the interim payment is around $1 million.
Apart from the consequential loss claims, the group has also submitted insurance claims for the damages to stock, property, plant and equipment. The amount will total around $40 million.
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Two interim insurance payments totalling approximately $16 million for the damages were received in April and July.
The interim payment of $10 million received in April has been recognised as an exceptional gain in the group’s financial results for the 1HFY2022 while the July payment of $6 million will also be recognised as an exceptional gain in the group’s 2HFY2022 results. Tax liabilities from these payments will come up to around $3 million, says the group.
Assuming all submitted insurance claims are accepted by the insurer, the group is expecting to recognise an estimated exceptional gain of $20 million for the FY2022 and up to $30 million for the FY2023.
Shares in QAF closed 0.5 cent lower or 0.62% down at 80 cents on Oct 27.
