Malaysia Pacific Corp Bhd falls into PN17 status

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KUALA LUMPUR (Dec 1): Malaysia Pacific Corp Bhd (MPCorp) has fallen into Practice Note 17 (PN17) status today after its external auditors expressed a disclaimer opinion on its latest audited accounts for the financial year ended June 30, 2014 (FY14).

In a filing with Bursa Malaysia today, MPCorp said its external auditors Messrs BDO had expressed a disclaimer opinion in MPCorp's audited financial statements for FY14 as it was not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion.

Messrs BDO highlighted, for one, its inability to "obtain sufficient appropriate audit evidence to determine the completeness and accuracy of the group's net operating costs of the car parks of RM4.003 million".

In a separate filing, MPCorp said its net loss narrowed to RM3.3 million for the first financial quarter ended Sept 30, 2014 (1QFY15) from RM5.25 million a year ago, mainly due to lower finance costs for the quarter as the major shareholder, Top Lander Offshore Inc had waived the interest on the amount outstanding by the group in the third quarter of 2014.

Revenue for 1QFY15 rose 5% to RM3.08 million from RM2.94 million due to higher contribution from rental of investment property during the three months.

In addition, MPCorp said there was a saving of finance costs on the amount outstanding due to AmanahRaya Development Sdn Bhd (ARDSB) due to the six months interest free period granted by ARDSB starting from March 10, 2014.

Loss per share for 1QFY15 was lower at 1.15 sen compared with a loss per share of 1.82 sen in 1QFY14.

On prospects, MPCorp said the property development segment is anticipated to contribute to the group’s result for FY15.

It has also undertaken a corporate proposal including a proposed proposed par value reduction, proposed renounceable rights issues, a proposed increase in authorised share capital and a proposed memorandum amendment. The corporate execise is expected to be completed by the first quarter of 2015.

“Barring unforeseen circumstances, the group’s prospect for the financial year (2015) is positive,” it said.