PETALING JAYA (April 25, 2013): Jeweller Niche Capital Emas Holdings Bhd has announced a repayment plan for a corporate guarantee owing to four banks, of which the lack of provisions for had made its external auditor qualify its accounts.
Source from (The Sun Daily): http://www.thesundaily.my/news/679338
Published: April 25, 2013
The group told Bursa Malaysia yesterday that it had agreed to a settlement on the corporate guarantee through the proposed issuance of 104.898 million new shares of 10 sen each at par value and RM1.023 million cash.
Niche Capital will pay RM11.5 million as settlement of the total outstanding bank loans of its former subsidiary, Yikon Jewellery Industry Sdn Bhd, instead of the RM16.6 million owing to the banks as at Dec 31, 2012.
In a separate filing, Niche Capital announced that its accounts for the financial year ended Dec, 31 2012 (FY12) had been qualified by its external auditors, Baker Tilly Monteiro Heng (BTMH), for not making provisions for the corporate guarantee in its 2012 accounts.
BTMH said it could not sign off on Niche Capital's accounts as it did not obtain sufficient and appropriate audit evidence on the assessment and quantification of the provision that is required to be recognised by Niche Capital.
BTMH said the directors of the group had explained that they were in the midst of negotiations with the banks to restructure and to discharge the corporate guarantees granted by the group. However, the group has yet to receive any formal reply from the banks.
BTMH said the fact that the group's operating cash flow is in the negative and that it is currently running in losses indicate an existence of material uncertainties which may cast significant doubt on the group's ability to continue as a going concern.
The group recorded net losses amounting to RM2.7 million and negative operating cash flow of RM1.2 million for FY12.
No comments:
Post a Comment