Caught this news: Poly Tower Ventures to be delisted on May 12
- Poly Tower Ventures to be delisted on May 12
Written by Darlene Liew
Tuesday, 04 May 2010 19:53
KUALA LUMPUR: POLY TOWER VENTURES BHD will be delisted from the official list of Bursa Malaysia Securities Bhd next Wednesday, May 12, following its failure in the appeal made on March 15, 2010 against the exchange's decision to delist securities of the company.
According to a statement on Tuesday, shareholders of the company who intend to hold their securities in the form of physical certificates can withdraw these securities from their Central Depository System accounts maintained with Bursa Depository at any time after the securities of the Company have been delisted from the Official List of Bursa Securities by submitting the application form for withdrawal in accordance with the procedures prescribed by Bursa Depository.
Ok.
I actually have mixed feelings about Poly Towers delisting!
Here's why...
Poly Tower's last reported earnings was in Dec 2009. Quarterly rpt on consolidated results for the financial period ended 31/5/2009
It said it lost some 83 million for the quarter!
Incredible given the sales is only about some 53 million but most disturbing issue about the losses was...
- Poly Tower posts RM84m loss on RM83m stock loss
Written by The Edge Financial Daily
Wednesday, 30 December 2009 23:35
KUALA LUMPUR: POLY TOWER VENTURES BHD [], whose trading was suspended last month for its delay in submitting its financial results, reported a net loss of RM83.89 million in the third quarter (3QFY09) ended May 31, 2009 due to a stock loss of RM82.66 million.
In a statement today, the company said following a stock investigation by Ferrier Hodgson MH Sdn Bhd (FH) conducted on June 19, it had adopted FH's stocks as at June 19 and rolled back to finalise the stock as at May 31.
"As a result of this approach, a stock loss of approximately RM82.66 million has been reflected in the interim financial statements," it said.
The stock investigation was carried out after the company saw stock valuation losses of RM38.73 million due to a sharp drop in its raw material prices and exchange losses of RM10.87 million in its first half ended Feb 28. The company's board was then informed of a possible stock loss, resulting in the stock take by FH.
Meanwhile, for 3QFY09, the firm said revenue fell 25% on-year to RM57.18 million, while it made a loss per share of 52.55 sen against earnings per share of 1.51 sen a year earlier.
For the nine months to May 31, it reported a net loss of RM133.15 million due to its stock valuation loss of RM38.73 million recorded in 1QFY09 and a foreign currency exchange loss of RM11.19 million for the nine-month period.
Revenue dipped to RM202.65 million from RM220.64 million. Its loss per share for the nine months was 83.4 sen against 4.12 sen a year earlier.
On 29th April 2010: POLY TOWER VENTURES BERHAD - Annual Audited Financial Statements for the year ended 31 August 2009
- .... Company is still unable to issue and submit its outstanding Annual Audited Financial Statements for the year ended 31 August 2009 by 30 April 2010. Baring unforseen circumstances, the Company is targeting to issue its Annual Audited Financial Statements on or before 31 May 2010.
And then.. this one... POLY TOWER VENTURES BERHAD ("PTV" and/or "Company") - Findings of the investigative audit undertaken by Ferrier Hodgson MH Sdn. Bhd. (“FH”)
- The Company wishes to announce the findings of the investigative audit undertaken by Ferrier Hodgson MH Sdn. Bhd. (“FH”)
1) Sometime in April 2009, the management of the Company discovered possible stock loss. As the result, both the Audit Committee and the Board of the Director of the Company resolved to appoint an investigative auditor to investigate the matter.
2) in this respect on 1 June 2009, FH was appointed by the Board of the Company to conduct an investigation into inventory losses in respect of the Company and two of its subsidiaries, namely, Poly Carriers Industries (M) Sdn. Bhd. (“PCI”) and Poly Asia Plastics Industries Sdn. Bhd. (“PAPI”)
3) 17 Aug 2009, FH issued its report to the Company and 6 October 2009, FH updated its report (collectively known as “FH Report”), Summary of the its findings is as follows
(a) in respect of PCI, there was a variance of PCI’s raw materials in quantity and value of 22,725,794 kg and RM86,706,069 respectively as at 19 June 2009 by comparing the stock information as per the stock card with the information as per the stock take conducted, as at 19 June 2009
(b) in respect of PAPI, there was a variance of PAPI’s raw materials in quantity and value of 2,659,050 kg and RM10,150,987 respectively as at 19 June 2009 by comparing the stock information as per the stock card with the information as per the stock take conducted, as at 19 June 2009
(c) as a result of the FH’s investigations and in accordance with FH’s findings, the conclusions are as follows:
i) PCI and PAPI do not maintain appropriate recording for raw materials after arrival at the port. Although PCI has a stock card system, however, this system does not appear to provide adequate recording of inventory movements.
ii) it appears that PCI and PAPI have poor management of its inventory, which includes the following:
- there is no apparent upgrade to the internal controls since the incorporation of PCI and PAPI although the businesses have been expanding;
- there is no standardized inventory movement documentation, e.g. material requisition forms and stock movement records;
- there is no stock reconciliation between the physical stock take variances with the stock records;
- there is no computerized integrated stock accounting system;
- there is no proper control over the procedures carried out by the appointed security guards in the recording of incoming and/ or outgoing of stock from/to PCI and PAPI; and
- a majority of PCI’s and PAPI’s logistics to transport stock is being outsourced to third parties, estimated to be more than 28 logistic/transport/freight companies, which may contribute to a higher risk of dissipation or theft of stock
in view of the above poor stock management and lack of internal controls as well as security controls, the movement of stocks may be prone to errors and/or may result in the risk of dissipation or theft. It also appears that the current stock system may be obsolete, antiquated and unsuitable to the present business operations of PCI and PAPI, Accordingly, FH is of the view that they are unable to critically identify the causes of the inventory loss.
4) by the virtue of the findings by FH, the Board had on 1 October 2009 appointed RSM Robert Teo, Kuan & Co (“RSM”) to as an independent advisor in respect of the accounting treatments arising from the issues raised in FH’s reports.
5) on 23 march 2010, RSM’s report was issued.
6) as the date of this announcement, the accounts of the Company and its Group are still being finalized taking into consideration, the content of inter-alia FH’s report, advice by RSM and the Company’s external auditors, Moore Stephens AC.
7) The Company has also taken other actions in relation to the above.
(a) the Company has appointed Clever Edge Sdn. Bhd. (“Clever Edge”), a consultant to identify suitable corrective measures as highlighted by FH in relation to the management of the inventory of the Group. Clever Edge issued its report on 24 February 2010 making various recommendations to improve the inventory process and physical security of the group. In particular, Clever Edge also provided a special physical security review undertaken by an external expert on physical security from Australia who indentified numerous weaknesses in relation to the physical security of raw materials belonging to the Group.
(b) 17 March 2010, the Company lodged a police report. The content of the police report covers the stock loss issues highlighted by FH and the fact that one of the reasons FH suggested for the stock loss was because of the poor stock management and security control which could have resulted in the risk of dissipation or theft of the stock belonging to the group. The police report was therefore lodged for the police to undertake a full investigation into stock loss.
8. the Board is still reviewing the various recommendations highlighted and it is working to ensure the publication of the accounts as soon as possible and also looking into another recommendations in relation to inventory management and physical security of the Group.
In my opinion, delisting does no justice at all. Not to the minority shareholders of the company!
Full investigation needs to be done into what has happened and the explanation by FH and the company is not enough. It simply is not justifiable given the size of the losses.
And most important, if Poly Tower is delisted, would the investing market know what has happened?
Comeon... let the truth be told first... then only delist.
Sometimes after delisting... everything that had happened.. is all but forgotten!
That's my humbled flawed opinion.
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