Saw the following news article: Nam Fatt revises FY09 statements
Sounds like an innocent article but I decided to read anyway.
- Friday May 7, 2010
Nam Fatt revises FY09 statements
PETALING JAYA: Construction firm Nam Fatt Corp Bhd, whose auditors Delloitte & Touche had had back from expressing an opinion over the financial statement for the year ended Dec 31, 2009 (FY09), has released a statement showing a deviation between the net loss of the unaudited fourth-quarter results and the audited FY09 statements.
The company said the deviation of 193% between the quarterly and FY09 results was due to provisions and allowances as well as a revision of profit estimates of the construction division.
Deviations of 193%????
That's a huge, huge deviation, yes?
And they did not even bother to show what any kind of proper figures. What la!
I then searched Bursa website for that announcement. This is the excel file attached: here
Net Loss as per Unaudited 4th Quarter Results was 184.987 million.
Net Loss as per AFS 2009 was 541.683 million!!!!!!!!!!!!!!!
What on earth is happening here????
And then I remembered Nam Fatt is now a PN17 company and I searched for some recent news clip on this company.
- Nam Fatt drops 35% after triggering PN17
Written by Joseph Chin
Wednesday, 17 March 2010 11:21
KUALA LUMPUR: Nam Fatt Corp Bhd shares skidded in active trade yesterday after it was placed under Practice Note 17 of the Main Market listing requirements of Bursa Malaysia Securities Bhd.
It closed 6.5 sen or 35% lower at 12 sen with nearly 40 million shares done after falling to an intra-day low of 11 sen. Nam Fatt had failed to meet its principal and interest payment of RM13.22 million due and payable on Monday following an asset sale agreement it had entered into on Dec 4, 2007 with Bank Kerjasama Rakyat Malaysia Bhd.
Nam Fatt will have to undertake a regularisation plan to be submitted within 12 months to the relevant authorities. It will also have to announce, within three months, whether the plan will result in a significant change in the business direction or policy of the company.
Nam Fatt faces trading suspension and the prospect of being delisted.
Meanwhile, Malaysian Rating Corp Bhd (MARC) yesterday downgraded its ratings on Nam Fatt’s RM250 million Islamic commercial paper/Islamic medium-term notes programme to MARC-4ID/CID from MARC-3ID/BBB+ID. The ratings continue to be placed on MARCWatch Negative where it has been since Dec 30, 2009.
“The rating action was taken following Nam Fatt’s failure to meet its principal and interest payment of about RM13.2 million to Bank Kerjasama Rakyat on March 15, 2010,” it said.
MARC said the bank loan default would likely trigger an immediate demand for repayment on all its other credit facilities though it had yet to receive a notice from the trustee that Nam Fatt’s Islamic commercial paper (ICP) had experienced an event of default. Additionally, the trustee has yet to declare an acceleration of maturity.
The ratings agency also said Nam Fatt had outstanding ICPs of RM130 million, of which RM40 million and RM90 million were specifically used to fund Syarikat Perumahan Nasional Bhd’s (SPNB) low- to medium-cost housing project in Tumpat, Kelantan and Thailand’s National Housing Authority’s low-cost apartment project in Bangkok, respectively. Of the outstanding ICPs, RM80 million is due on April 6, 2010.
This article appeared in The Edge Financial Daily, March 17, 2010.
Earlier this month on Star Business: Eight areas of concern cast doubt on Nam Fatt
- Tuesday May 4, 2010
Eight areas of concern cast doubt on Nam Fatt
By TEE LIN SAY
Deloitte & Touche unable to express opinion on builder’s financial statements
PETALING JAYA: There are eight significant areas of concern that prevent auditors Deloitte & Touche from expressing an opinion on Nam Fatt Corp Bhd’s financial statements.
These include the uncertainty relating to Nam Fatt as a going concern, the inability to ascertain the fairness of provisions for foreseeable loss on contracts, and the uncertainty of allowances for doubtful debts and other receivables.
“The audited financial statements of certain foreign subsidiary companies and the Sudan branch of a subsidiary company were also not available,” Deloitte clarified.
As for the material uncertainties which cast significant doubt on the ability of Nam Fatt and the group to continue as a going concern, Deloitte said this was due to Nam Fatt’s announcement on it being classified as a PN17 company.
Apart from these reasons, the operational losses incurred by the company and the group which resulted in the company having a capital-deficiency position, as well as the group and the company’s current liabilities which have exceeded its current assets also cast material uncertainties .
It certainly is troubling times for construction group Nam Fatt after it defaulted on some loans and made an operational loss of some RM560mil in the year to Dec 31, 2009.
As at Dec 31, Nam Fatt had a capital deficiency of RM35.2mil and its current liabilities exceeded current assets by RM201.6mil and RM117.1mil at the company and group levels respectively.
Malaysian Rating Corp (MARC) has been continuously downgrading Nam Fatt’s bonds, with its latest downgrade to D on April 6.
MARC downgraded Nam Fatt’s long and short-term ratings on its RM250mil Islamic commercial papers/Islamic medium-term notes (ICP/IMTN) to a D following Nam Fatt’s failure to repay its RM80mil ICPs which matured on April 6, 2010 after being unable to roll over the ICPs.
Nam Fatt has outstanding ICPs of RM130mil.
“Out of this, RM40mil and RM90mil were specifically used to fund the Syarikat Perumahan Nasional Bhd’s low- to-medium cost housing project in Tumpat, Kelantan and Thailand’s National Housing Authority’s low-cost apartment project in Bangkok respectively. Of the outstanding ICPs, RM80mil was due on April 6, 2010,” said an analyst from MARC in his report dated March 16.
On March 16, MARC had already downgraded the bonds a second time, following Nam Fatt’s failure to meet its principal and interest payment of about RM13.2mil to Bank Kerjasama Rakyat Malaysia Bhd.
Since then, Nam Fatt has applied for an ad interim order to restrain its existing creditors from taking further legal action to recover amounts owed by the group.
Nam Fatt had been placed on Negative Watch since Dec 30, 2009.
Nam Fatt officials were not immediately available for comment.
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