Special auditor releases findings on Nexgram's assets

by **Cals** Wed 06 Jul 2016, 00:46

Special auditor releases findings on Nexgram's assets

By Tan Siew Mung / theedgemarkets.com | July 5, 2016 : 9:39 PM MYT

KUALA LUMPUR (July 5): Nexgram Holdings Bhd's special auditor Ferrier Hodgson MH Sdn Bhd (FHMH) said its special audit met with hindrances as it has not managed to get hold of the required documents, such as payment vouchers, bank statements and other relevant documents, for the group's former subsidiaries.

The required documents were surrendered to two individuals after Nexgram had sold shares in Circle Moon Sdn Bhd (formerly known as Nexgram Resources Sdn Bhd) and Godynamic Investments Ltd, according to the bourse filing today.

Earlier this year, the regulator required Nexgram to provide verification on the existence of certain assets belonging to the subsidiaries.

Meanwhile, FHMH noted in its report that Nexgram's subsidiary Nexgram Land Sdn Bhd (NLSB) had appointed consultants for the Cyberjaya and Putrajaya property development projects without the board's consent.

The special auditor said it had not sighted any deliberation by the board on the appointment of consultants for both projects.

In the report, FHMH highlighted that NLSB had also appointed a steel bar supplier and paid RM17.444 million to lock in the steel bars for the consumption of the development projects. The steel bars will be delivered to NLSB upon commencement of the Cyberjaya and Putrajaya projects.

However, the construction work for the Cyberjaya project has yet to commence and the development order for Putrajaya project had been rejected by Majlis Perbandaran Sepang.

The supplier had refunded RM5.22 million to NLSB, which has also instructed the supplier to refund the balance payment of RM12.5 million to be made to Spacious Glory Sdn Bhd, which sold a 70% stake in a construction outfit to NLSB.

To recap, in April this year, NLSB entered into a conditional share sale agreement with Spacious Glory to acquire 70% equity interest in construction outfit Blue Hill Development Sdn Bhd for RM12.5 million.

Nexgram's share price closed at five sen today. The stock has halved since the start of the year from 10 sen.