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Manhattan Resources: Higher trade, other payables from longer credit terms, accrued expenses
AN increase of S$6.7 million in trade and other payables for fiscal year 2018 was mainly due to its subsidiaries securing longer trade credit terms, as well as accrued expenses, the Singapore-listed coal shipping firm said in response to queries by the Singapore Exchange.
In a regulatory filing released on Wednesday night, Manhattan Resources said the increase in its trade and other payables was mainly attributable to its units obtaining "longer trade credit terms with zero finance costs" from key suppliers in its shipping and power segments, and "accrued expenses for the construction costs" in its property development segment.
It added that the longer trade credit terms was in line with the group's cash management strategy, in view of "uncertainties in the general economic environment".
"The longer credit terms granted by certain of our key suppliers in the shipping and power sectors generally range from 60 to 120 days (compared with 30 to 60 days previously) after our receipt of the invoices, which are typically rendered upon the due delivery of the relevant service or goods to our subsidiaries," the company said.
Shares in Manhattan Resources last traded at 2.4 Singapore cents apiece on March 15.