For Morimoto-san and Iriguchi-san cost, do you mean that we should budget as
additional charge to the related companies?
For example, Charge to L-NSK = US$ 21k per semi-annually + Morimoto-san
charge approx. US$ 150k/2*40%
Charge NBMT = APTC existing charge US$ 1206k + Iriguchi-san charge approx.
US$ 64k
KH - Yes. APTC should budget the additional charge to the related
companies.
My rationale - based on our analysis of Dec '15 accounts, only a partial of
Morimoto-san's cost was included in the SGA expenses of APTC's accounts
whereas the rest of Morimoto-san's cost was parked at the balance sheet. In
the case of Iriguchi-san, his entire cost was parked at the balance sheet.
It means that the SGA expenses of APTC is not a true reflective of APTC
expenses. If APTC does not go ahead to re-charge AO companies for
Morimoto-san and Iriguchi costs, it risks running into loss.
Please feel free to approach us should you require further clarification