The loss before and after tax in current quarter were mainly due to one-off fair value adjustment on Assets Held for Sale (as stated in Note A21) amounting to RM109.5 million, as a result of writing down the carrying amount to their fair value less costs to sell, pursuant to MFRS 5. Excluding the one-off fair value adjustment above, the Group recorded PBT and PAT for the quarter at RM10.8 million and RM8.0 million respectively. The PAT margin for the quarter under review was 6%, this represents a significant improvement compared to LAT margin of 8% of immediate preceding quarter.
Subject to the completion of the Proposed Disposal and DPL Distribution as well as approval by our Board, it is the intention of our Company to distribute approximately USD4.23 million, equivalent to approximately RM18.80 million, to our Company’s shareholders via a special dividend. For illustration purposes, the distribution of RM18.80 million by our Company translates into RM0.02 per Share based on the existing issued 984,555,371 PIB Shares (excluding 7,666,100 treasury shares held by our Company) as at the LPD.
In addition, the proceeds from the Proposed Disposal will allow our Group to repay or settle the bank borrowings and liabilities which were incurred by DPL for the Project as well as part of our Group’s other bank borrowings. This will strengthen the financial position of our Group with its net gearing expected to decrease from 1.29 times as at 30 June 2022 (audited) to 0.88 times and cash and short-term deposits estimated to increase significantly from RM168.98 million as at 30 June 2022 (audited) to approximately RM438.87 million as detailed in Section 6.1 of this Circular.
SHAH ALAM: Two company directors claimed trial at the Sessions Court, here, for abetting an individual to embezzle close to RM11 million in funds from several companies.
Lim Ah Hock, 71, and Lim Pay Chuan, 53, both pleaded not guilty when the charges were read out to them, separately, before Sessions Court judge Rozilah Salleh, today.
Ah Hock was accused of partaking and abetting G. Paismanathan in cheating Chin Yit Wah to pay RM530,000 to Siaz Holding Bhd using Colas Rail System Engineering Sdn Bhd's funds for some non-existent engineering consultation works that included interface works with KVMRT PDP and MRT Corp.
He was accused of committing the offence at Pestech Technology Sdn Bhd's office located in Ara Damansara, Petaling Jaya, Selangor on Nov 16, 2017.
The Edge wrote lengthy piece about Pestech this week. Key points: - placement exercise cancelled for now, relying on internal funds -business as usual; board not taking action against the key execs until the court decides - company still tendering for projects; track record speaks for itself (order book at RM1.4 billion) - charges are for allegedly abetting the misappropriation of funds and not corruption
According to Pestech, the chairman and ceo “strenuously” denied all allegations. The company said “They will defend and clear themselves of the said charges and allegations in court, as both individuals have represented that neither of them had benefited from the payments."
Pestech: Priority is to regain confidence of all stakeholders
“The company is still tendering for projects. We have a RM1.4 billion order book of ongoing projects and we will tender in Papua New Guinea, Iraq, the Philippines and Singapore. In Singapore, our bids are for rail-related works while two are for the transmission of power lines,” says the spokesperson.
Business as usual at Pestech; prospects remain sound despite court case By FocusM
THE business prospects of Pestech International Bhd, an integrated electrical power technology firm, remain intact despite its share price having taken a tumble since late last month after two of its top executives were charged for allegedly abetting the misappropriation of fund related to a wholly owned subsidiary.
A spokesman said Pestech has at least RM1.4 bil in order book with plans afoot for the company to tender for projects in several regional countries including Singapore, the Philippines and Papua New Guinea.
“The company has built its track record as a rail electrification company by undertaking transmission lines and railway works,” the spokesman told FocusM on condition of anonymity given its pending court case.
“Locally, its projects include the Rapid Transit System Link (Malaysia-Singapore), Southern Double Track (Gemas- Johor Bahru) and the Aerotrain project at the KLIA (Kuala Lumpur International Airport).
Although both its executive chairman Lim Ah Hock and managing director-cum-group CEO Lim Pay Chuan were charged at Shah Alam Sessions Court on Jan 27, the duo have denied all allegations and claimed trial in respect of the charges against them.
As per Pestech’s Bursa Malaysia filing, both Ah Hock and Pay Chuan were accused of abetting the misappropriation of Pestech Technology Sdn Bhd’s assets with regard to four payments amounting to RM10.6 mil.
The principal charge was against Pestech Technology’s CEO G. Paismanathan who was charged in November 2022 with four counts of misappropriating company assets worth RM10.6 mil.
“Both Ah Hock and Pay Chuan have strenuously denied and claimed trial in respect of all the charges and allegations against them. They will defend and clear themselves of the said charges and allegations in court as both individuals have represented that neither of them had benefitted from the payments,” Pestech’s stock exchange filing pointed out.
“(Moreover), both directors have provided comprehensive explanations to the company’s board which after due consideration, decided and concurred unanimously that it is not necessary to take any action against them until the court decides otherwise.”
Notwithstanding the company’s sound prospects, Pestech has decided to put on hold its private placement exercise “due to conditions being not conducive”.
“Instead, the company will be using internal funds, boosted by the proceeds from the sale of one of its assets in Cambodia for net proceeds of about RM200 mil,” explained its spokesman.
“Pestech’s main priority at the moment is to regain investor confidence and fulfil its project pipeline. It will continue to bid for projects and expand its project portfolio internationally.”
At 3.42pm, Pestech was down 1 sen or 13.77% to 25.5 sen with 3.45 million shares traded which thus valued the company at RM253 mil. – Feb 21, 2023
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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The loss before and after tax in current quarter were mainly due to one-off fair value adjustment on Assets
Held for Sale (as stated in Note A21) amounting to RM109.5 million, as a result of writing down the carrying
amount to their fair value less costs to sell, pursuant to MFRS 5.
Excluding the one-off fair value adjustment above, the Group recorded PBT and PAT for the quarter at
RM10.8 million and RM8.0 million respectively. The PAT margin for the quarter under review was 6%, this
represents a significant improvement compared to LAT margin of 8% of immediate preceding quarter.