Megan posts RM1.3bil loss

PETALING JAYA: Optical disk maker Megan Media Holdings Bhd posted a whopping pre-tax loss of RM1.3bil for the fiscal year ended April 30 on revenue of RM122.2mil.
Loss per share stood at 622.82 sen while net liabilities per share amounted to RM3.92.
In a filing to Bursa Malaysia on Friday, the company reported defaults on all its loans, which amounted to almost RM900mil.
As a result, various banking institutions had initiated legal action against the group, Megan said. The group is in a negative net cash position of RM897.6mil while shareholders' fund is in the red of RM797mil.
During the period, Megan had an impairment loss of property, plant and equipment (PPE) of RM488.1mil.
This figure, which is based on the directors' best estimates, may change pending the outcome of further investigation of PPE by the investigative accountants.
There was no formal valuation of PPE in the past, the company said.
In addition, Megan also had a write-off of investment in a subsidiary no longer consolidated of RM138.5mil, write-off of deposit for machinery of RM198.7mil, write-off of trade receivables of RM189.9mil and provision for crystallisation of corporate guarantee to a subsidiary of RM118.9mil.
Also included in the balance sheet are provisions for expected claims of RM31.8mil from third parties.
Megan said the final report from the investigative accountants was expected to be completed in six to eight weeks.
The board had adjusted the substantial irregularities in the last three financial quarters but further amendments may be required pending the final report.
In addition, there might be further liabilities that might have crystallised but yet to be provided for, it added.
Classified as PN17 or financially-troubled company, Megan has eight months from June 19 to submit a regularisation plan to the relevant authority.
“The viability of the company rests primarily on the completion of a successful implementation of debt restructuring and regularisation plans,” it added.