ASUPREM (7070) - Astral explains deviation in 2013 results
Tuesday, 3 June 2014
PETALING JAYA: Electronics product manufacturer Astral Supreme Bhd said there was a 154% deviation between its net loss as stated in the unaudited fourth quarter results ended Dec 31, 2013, as announced on Feb 28, and audited financial statements for the financial year ended Dec 31, 2013.
Astral Supreme incurred a net loss of RM25.58mil as per its audited financial statements for 2013 and a net loss of RM10.08mil for the year according to its fourth quarter results report, a difference of RM15.5mil.
“The major causes of the variances between the announced unaudited results and the audited results are due to the adjustments made on the exceptional items of possible irregularities pursuant to the investigative audit conducted by PKF Advisory Sdn Bhd, and adjustments and reclassification of cost of sales and others items by the external auditor,” the company said in a filing with the stock exchange yesterday.
This included an adjustment to reversal of sales of RM4.82mil, impairment of amount owing by associate company of RM9.49mil, reversal of impairment in trade receivables of RM1.65mil and impairment in advance to creditors of RM1.43mil.
Astral Supreme, down 21% for the year, was last traded at 15 sen, up 2.5 sen on heavy volume of 27.79 million shares.
It had said last Thursday that PKF had completed its investigative review and highlighted possible irregularities, including the veracity of certain sales transactions amounting to RM4.8mil relating to some products manufactured by a subsidiary of the company that were questionable and could not be reasonably determined.
PKF had also proposed further impairment of RM3.4mil for research and development and advance payment of RM3.2mil for certain products and moulds to third parties without adequate supporting documentation.
The audit firm contended that there was insufficient evidence to substantiate the arrangement of several pieces of vacant land valued at RM1.5mil, which had been offered as settlement for outstanding debts owed by an associate company, which was formally a subsidiary.
Astral Supreme said its board had lodged a police report on May 28 and suspended a director of a subsidiary who was formerly a managing director of the company as well as formed a committee to assess the group’s internal controls and risk management policies.
The committee has been tasked with implementing measures to safeguard the resources of the group.
A unit of Penang-based Astral Supreme had previously agreed to participate in the multi-billion ringgit undersea tunnel project to link the state’s island and mainland.
Its unit Astral Supreme Construction Sdn Bhd, had on Aug 15 signed a joint-venture agreement with Zenith PMC Sdn Bhd to manage, perform and carry out feasibility studies and detailed designs for certain roadworks and the undersea tunnel between Penang island and Seberang Prai.
Zenith PMC is a unit of Zenith Construction Sdn Bhd, one of the major shareholders of Consortium Zenith BUCG Sdn Bhd, which is in turn the main contractor of the undersea tunnel. - The Star
Tuesday, 3 June 2014
PETALING JAYA: Electronics product manufacturer Astral Supreme Bhd said there was a 154% deviation between its net loss as stated in the unaudited fourth quarter results ended Dec 31, 2013, as announced on Feb 28, and audited financial statements for the financial year ended Dec 31, 2013.
Astral Supreme incurred a net loss of RM25.58mil as per its audited financial statements for 2013 and a net loss of RM10.08mil for the year according to its fourth quarter results report, a difference of RM15.5mil.
“The major causes of the variances between the announced unaudited results and the audited results are due to the adjustments made on the exceptional items of possible irregularities pursuant to the investigative audit conducted by PKF Advisory Sdn Bhd, and adjustments and reclassification of cost of sales and others items by the external auditor,” the company said in a filing with the stock exchange yesterday.
This included an adjustment to reversal of sales of RM4.82mil, impairment of amount owing by associate company of RM9.49mil, reversal of impairment in trade receivables of RM1.65mil and impairment in advance to creditors of RM1.43mil.
Astral Supreme, down 21% for the year, was last traded at 15 sen, up 2.5 sen on heavy volume of 27.79 million shares.
It had said last Thursday that PKF had completed its investigative review and highlighted possible irregularities, including the veracity of certain sales transactions amounting to RM4.8mil relating to some products manufactured by a subsidiary of the company that were questionable and could not be reasonably determined.
PKF had also proposed further impairment of RM3.4mil for research and development and advance payment of RM3.2mil for certain products and moulds to third parties without adequate supporting documentation.
The audit firm contended that there was insufficient evidence to substantiate the arrangement of several pieces of vacant land valued at RM1.5mil, which had been offered as settlement for outstanding debts owed by an associate company, which was formally a subsidiary.
Astral Supreme said its board had lodged a police report on May 28 and suspended a director of a subsidiary who was formerly a managing director of the company as well as formed a committee to assess the group’s internal controls and risk management policies.
The committee has been tasked with implementing measures to safeguard the resources of the group.
A unit of Penang-based Astral Supreme had previously agreed to participate in the multi-billion ringgit undersea tunnel project to link the state’s island and mainland.
Its unit Astral Supreme Construction Sdn Bhd, had on Aug 15 signed a joint-venture agreement with Zenith PMC Sdn Bhd to manage, perform and carry out feasibility studies and detailed designs for certain roadworks and the undersea tunnel between Penang island and Seberang Prai.
Zenith PMC is a unit of Zenith Construction Sdn Bhd, one of the major shareholders of Consortium Zenith BUCG Sdn Bhd, which is in turn the main contractor of the undersea tunnel. - The Star
