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OTHERS MUDAJAYA GROUP BERHAD ("MUDAJAYA") Deviation of 10% or more between the announced unaudited financial statements and the audited financial statements for the financial year ended 31 December 2016

MUDAJAYA GROUP BERHAD

Type Announcement
Subject OTHERS
Description
MUDAJAYA GROUP BERHAD ("MUDAJAYA")
Deviation of 10% or more between the announced unaudited financial statements and the audited financial statements for the financial year ended 31 December 2016

The Board of Directors (“the Board”)  of Mudajaya hereby announces that as a result of Mudajaya Corporation Berhad, a wholly-owned subsidiary of Mudajaya, entering into a Settlement Agreement dated 10 April 2017 (“the Settlement Agreement”) with GE Power Services (Malaysia) Sdn Bhd and Alstom Power Systems (collectively referred to as “GE”), the Group has recorded an impairment of RM111.9 million (“the Impairment”) of its assets relating to the Tanjung Bin 4 Project (“the Project”) as separately announced today.  The Impairment has caused a deviation of more than 10% between the Group’s Loss After Taxation And Minority Interest stated in the Unaudited 4th Quarter Results for the financial year ended 31 December 2016 as announced on 27 February 2017 (“Unaudited Results”) and the Audited Financial Statements for the financial year ended 31 December 2016 announced today (“AFS”).

At the time of the release of the Unaudited Results on 27 February 2017, the Board and Management of Mudajaya firmly believed that the claims relating to the Project had a strong chance of recovery. Their assessment was also supported by independent consultants. The Impairment resulted from the Settlement Agreement reached on 10 April 2017 following protracted negotiations. The Board is of the opinion that it is in the best commercial interests of the Group to agree to the settlement as it will provide the Group with cash of RM60.0 million that it can deploy towards new and existing projects, and still retain its rights to any recovery from insurance proceeds that were part of its total claims, via GE as the consortium leader for the Project.

The deviation of the Loss After Taxation And Minority Interest between the Unaudited Results announced on 27 February 2017 and the AFS is 45%, details of which are as follows:-

 

Description

Amount

RM million

Amount

RM million

Unaudited Loss After Taxation And Minority Interest as announced on 27 February 2017

 

(264.9)

a)   The Impairment

(111.9)

 

b)   Additional costs accrued (Project’s balance costs, bad debts,     foreign exchange loss and other administrative & personnel expenses)

(5.7)

 

c)   Share of results from an overseas associate due to additional tax provision

(0.5)

 

d)   Additional provision for taxation and deferred tax

(1.0)

 

e)   Others

0.3

(118.8)

Audited Loss after Taxation And Minority Interest as per AFS

 

(383.7)

The above results should be read in conjunction with the full set of AFS announced today.

 

This announcement is dated 10 April 2017.






Announcement Info

Company Name MUDAJAYA GROUP BERHAD
Stock Name MUDAJYA
Date Announced 10 Apr 2017
Category General Announcement for PLC
Reference Number GA1-10042017-00071




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