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1MDB’s profit at RM878 million, debt at RM42 bil

April 16, 2014

by CHAN QUAN MIN & STEPHANIE JACOB (KiniBiz)

1Malaysia Development Bhd reported a sharp rise in pretax profit to RM877.7 million for the year to Mar 31, 2013 compared to just RM44.7 million previously. However liabilities, basically debt, came up to some RM42 billion as at the end of the financial year.

Net profit meanwhile came in at RM778.2 million for the same period from the RM44.7 million for the previous year when there was no tax.

The much delayed accounts have finally been submitted to the Companies Commission of Malaysia (CCM). The accounts which have been pending for a year, were submitted to the commission earlier this month.

1Malaysia-Development-Bhd-Income-Statement-In its abbreviated accounts for the financial year ending March 31, 2013 (FY13), the sovereign fund recorded an increased revenue of RM2.59 billion up from the RM633.2 million seen in the previous corresponding year.

However when KiniBiz attempted to get the full annual report for the year at the Companies Commission Malaysia, it was told to come later as it could not be photocopied immediately.

As only the abbreviated financial statements were available on CCM’s website, it is unclear what contributed to the significant increase in both revenue and profits.

However it is believed that the fund is likely to have revalued their assets which include prime land banks in the Kuala Lumpur area. The land assets which include the Tun Razak Exchange (TRX) and Bandar Malaysia were acquired from the government at heavily discounted prices.

Previously, 1MDB revaluing its land assets had been crucial to it showing a profit at the end of FY12. Without a revaluation gain of investment properties to the tune of RM570 million, the fund would have recorded a loss of RM525.3 million instead of a pre-tax profit of RM44.7 million.

For more in depth coverage on 1MDB, please go here and here.

The fund, which should have submitted its audited accounts to the CCM by Sept 30, 2013, received a six month extension  to Mar 31, 2014 to submit its accounts for FY13. 1MDB had requested the extension on the basis that it had recently changed it business direction and needed more time to prepare the relevant financial information.

In February it emerged that 1MDB had replaced its auditors KPMG with Deloitte. The fund said the decision came about as a mutual agreement, and no further explanation or reasons were given.

Meantime, the balance sheet shows that non-current assets have increased to nearly RM31 billion from RM2.15 billion previously, reflecting some of the assets that it had bought, including the power assets of Tanjong, Jimah and Genting. It also recently clinched a 2000 megawatt power plant project coded Track 3B for RM11 billion beating out close competitor YTL Power International.

1Malaysia-Development-Bhd-Balance-Sheet fixedAt the same time, non-current liabilities, reflecting loans, increased substantially as well to nearly RM31 billion from around RM8 billion previously. Together with short-term liabilities, total liabilities amount to some RM42 billion as at end Mar 2013 compared to under RM9 billion previously.

The abbreviated accounts indicate that 1MDB has substantial cash or near cash items amounting to almost RM14 billion compared to almost RM9 billion previously.

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One Comment leave one →
  1. najib manaukau permalink
    April 17, 2014 12:56 am

    Please don’t try to teach the Umno schmucks how a balance sheet should be looked at, if at all they do know how to, Malaysia wouldn’t be the shamble they are now in ! They must think everyone in Malaysia is just as ignorant, literate or as stupid as they are !

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