82% deviation in FY16 results due to land sale: Thriven

PETALING JAYA: Thriven Global Bhd has reported a deviation of RM4.59 million or 82% between its unaudited and audited loss after taxation and minority interest for the year ended Dec 31, 2016 (FY16), mainly due to impairment loss from the land sale in Bukit Tunku at a loss of RM11.41 million.
The land is owned by Thriven’s 51% subsidiary Mulpha Argyle Property Sdn Bhd.
In a filing with Bursa Malaysia yesterday, it said that the audited net loss stood at RM10.15 million as stated in its audited financial statement that was submitted to Bursa Malaysia yesterday.
In its unaudited financial statement announced on Feb 24, 2017, it reported a net loss of RM5.56 million.
On April 11, Thriven announced that Mulpha Argyle had entered into a sale and purchase agreement (SPA) with Mount Well Sdn Bhd for the sale of the land for RM27.52 million, which resulted in the group writing down the cost of inventory by RM8.81 million to its net realisable value for FY16.
The 51% share of the impairment loss attributable to the owners of the company is equivalent to RM4.49 million. Together with RM91,000 provision for taxation, the total deviation is RM4.59 million.
“At the time of the release of the FY16 unaudited results on Feb 24, 2017, the group was still considering alternative options for the Bukit Tunku land and without the receipt of downpayment and a binding purchase offer for the land, no impairment or write down was proposed,” it said.
It said that the offer is only considered to be binding upon the receipt and crediting of the deposit, following which the SPA will be signed.
“Upon the receipt and crediting of the deposit and execution of the SPA on April 11, 2017, with the concurrence of the group’s external auditors KPMG PLT, the decision was made to reflect the impairment loss in FY16,” it added.