The transition period ( Accounts )

THE FINANCIAL REPORTS OF PV10

This is one item that most owners are interested to know and should know. How can we keep our properties in good condition if there is insufficient fund in the account. If a condo is in a deplorable condition, it is a sign that there is insufficient fund to carry out any major repair jobs. Our condo should not be under this category and it is the duty of the JMC to see that it will not occur.
According to the balance sheet given to the JMC in the unaudited financial reports, there is a shareholder’s fund of RM182,831.98 as at 31/10/2008. Our financial position should be very strong and we will definitely maintain it that way. It is the JMC’s responsibility to maintain a very strong reserves in the account. We shall be prudent in our expenditure without compromising on quality.
The JMC is well aware that we need fund to carry out major repairs in another 5-10 years time due to wear and tear to our equipments in the lifts, gen-set, water pumps and others. We may also need to carry out a repainting job. How many condos you see around Setapak with a new coat of paint? We can do it because our properties are still new. Not much fund will be incurred for any repair jobs because the equipments that we have now are still new. Our collection for maintenance fees exceeds 95%. The JMC is also aware that the owners will be happy to pay if their properties are well maintained.
In my next blog, I shall explain how the JMC manages to save about RM 200,000 for PV10.
Goodnight and have a nice day.
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