Nakamichi appoints Deloitte as special auditor

Nakamichi appoints Deloitte as special auditor
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Friday, 28 June 2013 21:09

KUALA LUMPUR: Nakamichi Corp Bhd has appointed a special auditor to probe into the controversy around the loss of Tamabina Sdn Bhd share certificates.

In a filing with Bursa Malaysia, the company said it had appointed Messrs Deloitte Corp Solutions Sdn Bhd to conduct a special review for the basis of claims made by its CEO Lo Man Heng and Tamabina against Nakamichi.

The special auditor will also look into the accounting treatment in its financial statements for the financial year ended June 30, 2011, on the shortfall in the guaranteed profit of about RM9 million from the acquisition of 51% of Tamabina shares.

At Nakamichi’s annual general meeting last Friday, the resolution for the removal of Lo as the company’s executive director/CEO was dropped as the court allowed his claim against the company and its major shareholders for an ad-interim injunction, pending the final disposal of the suit.

Nakamichi came into attention on June 5, when the company disclosed a police report dated May 17 regarding missing share certificates representing 49% equity interest.

The report was made by Nakamichi’s controlling shareholder See Too Chan. She, along with husband Goh Kheng Piow, collectively holds a 32.94% stake in the company.

According to the police report, See had revealed during a recent board meeting that Lo had confirmed that “he is not aware of the whereabouts of the physical share certificates”.

Nakamichi bought the 51% stake in Tamabina from Lo and Yap Siaw Lin for RM30 million cash in December 2007, with the sellers providing a profit guarantee on Tamabina’s audited net profit of not less than RM12 million for each of the financial years ended June 30, 2010, 2011 and 2012.