1999/10/08
PRELIMINARY REPORT FOR THE YEAR ENDED 30 JUNE 1999 [JSE Securities Exchange - SENS]
 
08/10/1999 - 20:00:55

PACIFIC ASIA INVESTMENTS INTERNATIONAL LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 05/27685/06)
PRELIMINARY REPORT FOR THE YEAR ENDED 30 JUNE 1999
SUMMARISED CONSOLIDATED INCOME STATEMENT
                                       AUDITED       AUDITED
                                       YEAR ENDED    YEAR ENDED
                                       30 JUNE 1999  30 JUNE 1998
                                       R000          R000
TURNOVER                               8 416         209 126
OPERATING PROFIT                       2 272         2 527
NET INTEREST PAID                      (2 581)       (2 762)
LOSS BEFORE EXCEPTIONAL ITEMS
AND TAXATION                           (309)         (235)
EXCEPTIONAL ITEMS *                    (14 051)      (1 010)
LOSS BEFORE TAXATION                   (14 360)      (1 245)
TAXATION                               (885)         (1 003)
LOSS AFTER TAXATION                    (15 245)      (2 248)
DIVIDENDS ON PREFERENCE SHARES         (11)          (11)
OUTSIDE SHAREHOLDERS' INTEREST         468           449
SHARE OF ASSOCIATE COMPANIES LOSS      -             (4)
LOSS ATTRIBUTABLE TO ORDINARY
SHAREHOLDERS                           (14 788)      (1 814)
TRANSFER FROM NON-DISTRIBUTABLE
RESERVES                               -             31
RETAINED LOSS                          (14 788)      (1 783)
NUMBER OF SHARES IN ISSUE              8 735 611     8 735 611
LOSS PER ORDINARY SHARE (CENTS)        (169,3)       (20,77)
HEADLINE LOSS PER ORDINARY SHARE
(CENTS)                                (8,4)         (9.32)
SUMMARISED CONSOLIDATED BALANCE SHEET
                                       AUDITED       AUDITED
                                       30 JUNE 1999  30 JUNE 1998
                                       R000          R000
CAPITAL EMPLOYED
ORDINARY SHAREHOLDERS' EQUITY          11 765        26 553
PREFERENCE SHARE CAPITAL               200           200
ORDINARY SHAREHOLDERS' INTEREST        -             468
LONG-TERM LIABILITIES                  1 706         6 834
                                       13 671        34 055
EMPLOYMENT OF CAPITAL
FIXED ASSETS                           12 103        16 245
INTANGIBLE ASSETS                      -             9 168
LONG TERM RECEIVABLES                  1 000         -
INTEREST IN ASSOCIATED COMPANIES       -             42
CURRENT ASSETS                         12 924        33 902
CURRENT LIABILITIES                    (12 356)      (25 302)
                                       13 671        34 055
* NOTE TO EXCEPTIONAL ITEMS:
EXCEPTIONAL ITEMS CONSIST OF THE FOLLOWING:
- GOODWILL ON ACQUISITION OF AROMA LIQUOR HOLDINGS LIMITED WRITTEN OFF R 7 918
000.
- RESTRAINT OF TRADE PAYMENTS WRITTEN OFF R1 250 000
- RESTRUCTURING AND RATIONALISATION COSTS R4 883 000
FINANCIAL RESULTS
THE NET OPERATING LOSS IS PRIMARILY ATTRIBUTABLE TO INTEREST PAID ON CAPITAL
EMPLOYED.
FURTHERMORE SIGNIFICANT ADDITIONAL COSTS AROSE AS A RESULT OF THE GROUP
RESTRUCTURE DISCUSSED BELOW.
COMMENT
DURING THE YEAR, AROMA LIQUOR HOLDINGS LIMITED, A SUBSIDIARY OF THE COMPANY,
ENTERED INTO AN AGREEMENT WITH A DIRECTOR OF THE SUBSIDIARY TO RESTRUCTURE THE
PRESENT BUSINESS OPERATIONS, WHEREBY THE SUBSIDIARY COMPANY HAS, EFFECTIVE 1
JULY 1998, DISPOSED OF ITS ENTIRE LIQUOR OPERATIONS AS A GOING CONCERN TO A
DIRECTOR OF THE SUBSIDIARY. AROMA LIQUOR HOLDINGS LIMITED WILL RETAIN THE
OWNERSHIP OF THE CAPE RENDEZVOUS PROTEA HOTEL.
PROSPECTS
MYCOM SOUTH AFRICA (PTY) LTD, THE COMPANY'S HOLDING COMPANY IS CURRENTLY
DISCUSSING WITH A THIRD PARTY FOR THEM TO ACQUIRE THE MYCOM GROUP'S CONTROLLING
INTEREST IN THE COMPANY.
RESIGNATION OF DIRECTORS
CHAN CHUN KIT RESIGNED AS A DIRECTOR ON 1 JULY 1998.
APPOINTMENT OF DIRECTORS
KIM PAK WONG WAS APPOINTED AS A DIRECTOR ON 1 NOVEMBER 1998.
QUALIFIED REPORT OF THE INDEPENDENT AUDITORS
THE COMPANY'S AUDITORS, PRICEWATERHOUSECOOPERS INC., AUDIT FOR THE YEAR ENDED
30 JUNE 1999 INDICATED SIGNIFICANT DEFICIENCIES RELATING TO THE FOLLOWING:
1. THE COMPANY HAS ADVANCED R19 294 000 TO ITS HOLDING COMPANY WHICH IS
EXPERIENCING LIQUIDITY PROBLEMS. THE ULTIMATE HOLDING COMPANY, MYCOM BERHAD
INCORPORATED IN MALAYSIA, HAS GIVEN AN UNDERTAKING TO PROVIDE FINANCIAL
SUPPORT. AS A RESULT OF THE IMPOSITION OF EXCHANGE CONTROLS BY THE MALAYSIAN
GOVERNMENT, IT IS NOT POSSIBLE TO ESTABLISH WITH CERTAINTY IF THE ULTIMATE
HOLDING COMPANY WILL PROVIDE THE NECESSARY FUNDING TO DETERMINE THE
RECOVERABILITY OF THIS LOAN.
2. INCLUDED IN THE LAND AND BUILDINGS OF THE OPERATING SUBSIDIARY IS A HOTEL
WHICH IS STATED AT A COST OF R9 435 000. DURING THE SECOND HALF OF 1997, AN
INDEPENDENT VALUATION OF THE LAND AND BUILDINGS REVEALED A VALUE OF R8 207 000
WHICH IS LESS THAN THE CARRYING VALUE. NO VALUATION WAS DONE DURING THE CURRENT
YEAR.
3. THE AUDITORS OF THE MAIN OPERATING SUBSIDIARY (AROMA LIQUOR HOLDINGS
LIMITED) HAVE QUALIFIED THEIR REVIEW ON THE ABILITY OF THE GROUP TO CONTINUE AS
A GOING CONCERN AND THE CARRYING VALUE OF LAND AND BUILDINGS.
AS A CONSEQUENCE, PRICEWATERHOUSECOOPERS INC. WERE UNABLE TO EXPRESS AN OPINION
ON THE FINANCIAL STATEMENTS.
AMOUNT OWING BY HOLDING COMPANY
THE LOAN ORIGINATED AS IT IS THE MYCOM GROUP'S TREASURY POLICY THAT ALL FUNDS
ARE TO BE CENTRALLY MANAGED, WITH THE VIEW TO ACHIEVE A LOWER COST OF INTEREST
FOR THE GROUP. AS A RESULT, ANY SURPLUS FUNDS WITHIN THE GROUP ARE MOVED TO
OTHER GROUP COMPANIES WHICH HAVE EXTERNAL BANK BORROWINGS AND THE LENDING
COMPANIES IN RETURN ARE ALLOWED TO CHARGE INTEREST AT A RATE NOT LOWER THAN THE
FD RATE. PAIIL, BEING A SUBSIDIARY OF MYCOM SOUTH AFRICA (PTY) LTD IS NOT IN
CONTRAVENTION OF THE COMPANIES ACT BY PUTTING ITS SURPLUS FUND WITH THE HOLDING
COMPANY; THE FUNDS ARE NOT PLACED INTEREST FREE OR AT A RATE LOWER THAN THE FD
RATE. THE LOAN WAS FULLY DISCLOSED IN THE ANNUAL FINANCIAL STATEMENTS. IN THE
AUDIT REPORT FOR THE YEAR ENDED 30 JUNE 1997, THE COMPANY'S AUDITORS DID NOT
EXPRESS ANY RESERVATION ON THE LOAN AS THE AUDITORS RECOGNISED MYCOM'S ABILITY
TO REPAY THE LOAN. THE RESERVED AUDIT OPINION FOR THE YEAR ENDED 30 JUNE 1998
AROSE NOT BECAUSE OF MYCOM'S INABILITY TO REPAY THE LOAN, BUT RATHER DUE TO THE
IMPOSITION OF EXCHANGE CONTROL BY THE MALAYSIAN CENTRAL BANK, WHICH COULD NOT
HAVE BEEN ANTICIPATED. MYCOM SOUTH AFRICA IS CURRENTLY DISCUSSING WITH A THIRD
PARTY FOR THEM TO ACQUIRE MYCOM'S CONTROLLING INTEREST IN THE COMPANY. THE
PROCEEDS FROM THE DISPOSAL WILL BE SET ASIDE TO FULLY REPAY THE LOAN PLUS
INTEREST.
DIVIDENDS
NO ORDINARY SHAREHOLDER DIVIDEND HAS BEEN PROPOSED OR PAID.
YEAR 2000
THE ISSUE IS UNDER REVIEW TO ASSURE THAT NO MATERIAL OPERATING PROBLEMS WILL BE
ENCOUNTERED.
ANNUAL REPORT
THE ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 1999 WILL BE POSTED TO
SHAREHOLDERS DURING NOVEMBER 1999.
ON BEHALF OF THE BOARD
DATO CHOO ENG GUAN
6 OCTOBER 1999
DIRECTORS
DATO CHOO ENG GUAN #
P J A MPHAFUDI
NG SING HWA #
YUP WEE CHUN #
KIM PAK WONG #
# MALAYSIAN
REGISTERED OFFICE
548 CHARLES STREET, MENLA PARK
P O BOX 136, NEWLANDS 0049
TRANSFER OFFICE
MERCANTILE REGISTRARS LIMITED
6TH FLOOR, 94 PRESIDENT STREET
JOHANNESBURG 2001
P O BOX 1053 JOHANNESBURG 2000
PRODUCED BY: MARGARET LETEBELE 08-10-1999 07:56 SENS

PUBLISHER : JSE SENS Feed
Source: JSE Securities Exchange - SENS
 
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