KUALA LUMPUR: SRC International Sdn Bhd, a company wholly owned by the Minister of Finance Inc (MoF Inc) and linked to the beleaguered 1Malaysia Development Bhd (1MDB), has submitted its audited accounts for the financial year ended March 31, 2014 (FY14), showing a net loss of RM164.35 million with zero revenue registered.

While the losses are baffling, it remains a mystery if the company has filed its financials for FY13. SRC International filed its accounts for FY14 on Oct 31 — the last date of submission.

However, a check with the Companies Commission of Malaysia (SSM) yesterday showed that financials for FY13 were still unavailable.

In an emailed response to The Edge Financial Daily last year, SSM said SRC International had yet to submit its annual returns and financial statements for 2013 and neither did it seek an extension. For the late submission of annual returns and financial statements, there will be a compound depending on the dates of the document and annual meeting held.

To recap, SRC International was initially a wholly-owned unit of 1MDB, but in mid-February 2012, 1MDB transferred SRC International to its shareholder, MoF Inc, in a dividend-in-specie payment of SRC International’s one million shares.

For FY14, according to filings with SSM, SRC International’s non-current assets stood at RM3.88 billion, while current assets amounted to RM266.25 million.

It has RM4.15 billion in long-term debt commitments and RM53.13 million in short-term borrowings. The company has negative reserves of RM56.63 million.

For FY12, SRC International did not register any revenue, but had other income of RM37.3 million, and incurred a net loss of RM29.1 million. It also had finance costs of RM56.2 million and negative reserves of RM78.5 million to grapple with.

The company had short-term deposits with licensed banks of RM1.7 billion and RM2 billion drawdown from an Islamic term financing from Kumpulan Wang Persaraan (Diperbadankan) [KWAP] in a unit trust investment managed by Aminvestment Services Bhd, which had a year-end dividend income of RM231,479 in FY12.

Checks with SSM revealed that SRC International’s directors remain the same. They are Datuk Che Abdullah @ Rashidi Che Omar, Datuk Suboh Md Yassin, Datuk Mohammed Azhar Osman Khairuddin and Nik Faisal Ariff Kamil.

SRC International has had prior dealings with well-connected Aabar Investments PJS.

Aabar Investments made headlines in mid-2011 when it acquired almost a quarter of RHB Capital Bhd from Abu Dhabi Commercial Bank.

SRC International’s director Nik Faisal was an executive director of investments in UBG Bhd.

This article first appeared in The Edge Financial Daily, on November 19, 2014.