KUALA LUMPUR (Jan 15): Practice Note 17 (PN17) outfit China Stationery Ltd (CSL) will be making a RMB66.12 million (RM35.08 million) adjustment to its financial statements for the nine months ended Sept 30, 2014 (9MFY14), thus reducing its net loss figure for the period to RMB330.59 million (RM175.34 million), instead of RMB396.72 million as stated earlier.
In a filing with Bursa Malaysia today, CSL (fundamental score: 1.2; valuation score: 1.2) said the amount of RMB66.12 million represented a 16.67% variance between its unaudited 9MFY14 results filed earlier and its latest audited 9MFY14 report, following a special audit conducted by external auditors RT LLP.
CSL had announced a net loss of RMB396.72 million (RM210.42 million) in its unaudited statement filed with Bursa Malaysia on Nov 14, 2014, while the latest audited report stated the loss figure should have been lower.
CSL said the deviation was mainly due to the recognition of deferred tax assets from losses of RMB128.29 million (RM68.04 million) from the company’s indirect wholly-owned subsidiaries, namely Sakura (Fujian) Plastics Enterprise Co Ltd and Sakura (Fujian) Packaging & Stationery Co Ltd.
Meanwhile, provision for doubtful debts made, amounted to RMB60.36 million (RM32.01 million) for debts more than 90 days in the company’s indirect wholly-owned subsidiary, namely Ruiyuan (Fujian) Enterprise Co Ltd, also contributed to the difference.
“The audit committee and board of directors have reviewed the reconciliations and approved for it to be made accordingly, to the adjustments made in the audited 9MFY14 report,” said CSL.
CSL shares closed down 0.5 sen or 6.25% to 7.5 sen today, with a market capitalisation of RM92.46 million.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)