FYI for below e-mail responded to SKC today.
Having re-consulted with QAR partner and RRL, we concluded that they are real sales which is a key point for bill and hold as most of the products were delivered to dealers in Jan & Feb’14.
In addition, the dealers had sent the request in Dec’13 to SKC to fix the delivery date to be in Jan’14. Although, such document from the dealers may not be perfect to clearly state the dealers’ responsibility for the risk of the products, it is a judgmental issue. The transactions have passed the 6 criteria set forth in the IFRS for bill and hold.
Therefore, we will not propose any adjustment to reverse the sales from December 31, 13 financial statements.