MAXWELL (5189) - Maxwell: More Mayhem
Maxwell published its annual report and The Star wrote an article about it:
Maxwell to delay capacity expansion on slowdown
Some snippets:
"Li noted that the group had a huge cash reserve of RM366.7mil as at the end of last year.
This, she said, allowed the group to look out for potential business opportunities and to expand beyond the core sports shoes OEM (original equipment manufacturer) and ODM (original design manufacturer) businesses."
Sounds all pretty good, doesn't it?
Unless one realizes that Maxwell's accounts were qualified by the auditors, a "tiny" oversight that the article forgot to mention.
The auditors needed a full eight pages to detail what was wrong, one of the worst lists I have seen for Bursa listed companies.
One of the auditors concerns is exactly the "huge cash reserve" as mentioned by Madam Li:
But unfortunately, it is not all.
The loss over 2015 was much larger (31%) than previously stated, as announced here.
Seven reasons were given, with one rather remarkable one, the salary of Madam Li herself. Apparently it was not known on February 29, 2016 what amount she would receive over 2015?
The remuneration committee should give a proper explanation regarding this matter.
Another matter is that the company has now entered PN17 status.
And then there are still many other concerns about which I have written before.
Malaysian journalists should really put in their effort, do some thorough research before they write about a subject. The above linked article is very disappointing and would leave an uninformed reader with a completely wrong impression about the well being of Maxwell.
MAXWELL (5189) - Maxwell: More Mayhem
http://cgmalaysia.blogspot.my/2016/08/maxwell-more-mayhem.html
