Maxbiz: The Dog Ate My Assets!

Do you remember them school days. You forgot your homework and as kids, we would come out with some of the daftest and silliest excuses in our attempt to cover up.

I was less than impressed when I highlighted Maxbiz and its missing 40 million assets in the posting, Honey Did You See My Missing 40 Million Assets?

On the Edge Financial Daily, Maxbiz fails to trace missing assets and by jolly, they did lose a car (as suggested in the earlier blog post!)!

Sorry but it's not even funny.

It's simply ludicrous.

What on earth is happening in this company?

• KUALA LUMPUR: Maxbiz Corp Bhd said today its missing assets of RM40.3 million could have generated sufficient returns to cover a RM1.8 million loan given to its subsidiary Mayford Garments Sdn Bhd (MGSB) by RHB Bank Bhd.
  
  It said a winding-up order was made against MGSB on Feb 28, 2007 by RHB Bank as the company had defaulted on the RM1.8 million loan. Maxbiz said attempts were being made to resolve the matter with RHB Bank.
  
  The missing assets comprised plant and machinery, a motor vehicle, office equipment, furniture and fittings, with a net book value of RM40.29 million as at Dec 31, 2006. The asset cost was RM64.44 million as at that date.
  
  Maxbiz said directors who were appointed on June 26, 2007 and Nov 26, 2007 had failed to communicate with the former directors of MGSB over the missing assets. It has lodged police reports over the matter.
  
  Maxbiz said it had written off its entire investment of RM47.11 million in MGSB last year.

How could plant and machinery go missing?

And these missing assets comprising of plant and machinery, motor vehicle, office equipment, furniture and fittings carried a net book value of rm40.29 million??????????????

??????

( Off topic: See this is why I personally would not invest using book value yardsticks. There is always a chance of the company inflating their book value. )

And needless to say, when I visited Bursa website for more info on Maxbiz, I get such announcements.

• MAXBIZ CORPORATION BERHAD ("MAXBIZ") - Monthly Status Announcement on Default in Payment Pursuant to Practice Note No. 1/2001
• Quarterly rpt on consolidated results for the financial period ended 31/3/2009

This announcement in May 2009 was worth noting: MAXBIZ CORPORATION BERHAD ("MAXBIZ" or "the Company") - Deviation of Results

• Pursuant to Paragraph 9.19 (34) of the Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors of MAXBIZ wishes to announce that the Company's loss after taxation for the financial year ended 31 December 2008 has deviated by 1135% from the unaudited loss after taxation of RM6.227 million as announced on 2 March 2009. The audited loss after taxation stated in the audited accounts now stands at RM76.926 million.

WISHES to announce? Duh! Rather poor choice of word, no? I mean, is the company so happy that there is such a massive deviation in earnings????

Omigosh... from 6.227 million losses corrected to rm76.926 million!!!!!!!!!!!!!!

!!!