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We refer to verbal query from Bursa Malaysia Securities Berhad on 20 March 2009 pertaining to the announcement dated 18 March 2009 on the findings of investigative audit by the Forensic Auditor (“FA”), requesting the following information for public release:-
1. To identify the items to be adjusted in the Fourth Quarter Financial Results for the Financial Year Ended 31st December 2008 (“Q4 Results”); and
2. The amount of adjustment for each item.
Based on the FA findings, the following items are proposed to be adjusted to the Q4 Results of SCAN:
Financial year ended 31 December 2005 and 2006
Consolidated Income Statement
- Cancellation of revenue as a result of the fictitious trading customer amounted to RM2.50 million.
- Reduction in cost of sales as a result of the commission expenses paid to a partner in Saudi Arabia for the fictitious trading customer amounted to RM0.45 million.
- Reduction in cost of sales as a result of the Research & Development expenses incurred in respect of fictitious trading supplier amounted to RM0.50 million.
Consolidated Balance Sheet
- Reduction in deposits as a result of the setting off of fictitious trading customer amounted to RM0.50 million.
- Reduction in property, plant and equipment as a result of the capitalisation of Research and Development equipment purchased from the fictitious trading supplier amounted to RM1.20 million.
- Increase in other creditors as a result of the fictitious trading customer and trading supplier amounted to RM0.01 million.
Financial year ended 31 December 2007
Consolidated Income Statement
- Cancellation of revenue as a result of the fictitious trading customer amounted to RM4.31 million.
Consolidated Balance Sheet
- Reduce of trade receivables as a result of the fictitious trading customer amounted to RM4.31 million.
As a result of the above mentioned adjustments, the shareholders’ fund of SCAN in the Q4 Results as at 31 December 2008 was approximately RM 26.00 million, comprising share capital of RM 20.00 million and reserves of RM 6.00 million. The consolidated accumulated losses of SCAN as at 1 January 2008, was restated to RM 0.322 million as opposed to a retained earnings of RM 5.535 million as previously reported, reflecting a reduction of RM 5.857 million.
The abovementioned adjustments which have been reflected in the Q4 Results are currently pending finalisation of the annual audit for the financial year ended 31 December 2008.
Please refer to the announcement made by the company today for the Q4 Results of the Company for the financial year ended 31 December 2008.
This announcement is dated 23 March 2009. |
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