KUALA LUMPUR, April 28 (Bernama) -- Boustead Holdings Bhd (BHB) today announced a deviation of more than 10 per cent between the net profit for the financial year ended Dec 31, 2022 (FY2022) stated in the unaudited fourth quarter (4Q) results announced on Feb 28, 2023, and FY2022 net profit in the audited financial statements for the year.
The group said the FY2022 net profit attributable to the shareholders was RM36.5 million, 41 per cent lower than the RM62.0 million announced earlier in the unaudited quarterly report.
The variance was due to the reduction in the share of results of associate by RM25.5 million to RM256.4 million, BHB said in a filing with Bursa Malaysia today.
"The change in the share of results of associates in the tabulation above was due to an additional provision on expected credit losses (ECL) made by Affin Bank Bhd (ABB), our 20.93 per cent associate," the group said.
Following its announcement of the 4Q FY2022 results, ABB made an additional provision on ECL of RM173.0 million, BHB explained.
Accordingly, ABB's audited net profit now stood at RM1.179 billion, as reflected in their audited financial statements, which were announced on April 26, 2023, it said.
"The additional provision of ECL was done in accordance with the MFRS 110 – Events after the reporting period and in consultation with Bank Negara Malaysia and their external auditor.
"For the avoidance of doubt, this additional provision had not been accounted for in ABB's unaudited fourth quarter 2022 results, and hence were not incorporated in our fourth quarter result announced on Feb 28, 2023," BHB said.
As a result of this additional provision, BHB said, it had to account for its 20.93 per cent share of after-tax impact in the audited account for FY2022 amounting to RM25.5 million.
-- BERNAMA