DEVIATION BETWEEN UNAUDITED AND AUDITED RESULTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2006
|HUP SENG INDUSTRIES BERHAD|
|Subject||DEVIATION BETWEEN UNAUDITED AND AUDITED RESULTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2006|
Contents :This announcement is made in accordance with Chapter 9 Paragraph 9.19 (34) of the Listing Requirements of Bursa Malaysia Securities Berhad.
The Board of Directors wishes to inform that the Group's audited profit after tax for the financial year ended 31 December 2006 of RM6,806,851 differs from the unaudited financial year end results of profit after tax of RM9,010,000 which was announced on 14 February 2007.
The variance is mainly due to the provision of additional tax liability and penalties of RM2,203,333 for year of assessment (“YA”) 2000 of a subsidiary of the Company, Hup Seng Perusahaan Makanan (M) Sdn. Bhd. (“HSPM”), on the reinvestment allowances claimed on the expenditure on the construction of warehouse. The Inland Revunue Board (“IRB”) had carried out a field audit on HSPM in 2005 and was of the opinion that expenditure on the warehouse does not qualify for reinvestment allowances. The subsidiary had appealed to the IRB and given its reasons why the subsidiary should be entitled to the reinvestment allowances. However, the appeal was not successful and the notice of additional assessments (“Form JA”) from IRB for YA 2000 dated 3 November 2006 was not received by HSPM until 9 March 2007.
As announced on 27 March 2007, the Company is submitting an application to the IRB to waive the tax penalties whilst the tax liability is to be settled by way of installments.
The reconciliation of the Group's unaudited results announced on 14 February 2007 and the Group's audited results is as follows: -
Please refer to Table 1
This announcement is dated 2 April 2007
|Unaudited Net Profit for the financial year ended 31 December 2006|
|Provision for additional tax liability…|
|Audited Net Profit for the financial year ended 31 December 2006|
|Company Name||HUP SENG INDUSTRIES BERHAD|
|Date Announced||2 Apr 2007|