UHY to carry out ‘special review’ on LCL

Troubled firm LCL Corp Bhd has appointed Messr UHY to carry out a “special review” on the group’s trade receivables and contracts of work-in-progress, the company told Bursa Malaysia yesterday.

UHY is expected to commence work of the special review from June 21 and will take approximately eight to 10 weeks to complete.

“Upon completion of the special review, a report on UHY’s assessment will be issued to LCL,” the company said.

LCL said the proposed scope of this special review would emphasise on the material amount of trade receivables and contracts based on “UHY’s materiality assessment worksheet and on a sampling basis.”

LCL suffered heavy losses in the last quarter of 2009 and was subsequently put under the financial troubled PN17 category after the company defaulted on its loans.

The interior fit-out specialist blamed the Dubai financial crisis for its own financial woes. LCL had previously said that its ability to service debts was affected because it was unable to collect outstanding bills from clients in Dubai.

Projects in Dubai had previously accounted for more than 70% of the group’s revenue.

The company said losses before tax in the fourth quarter was RM327.1mil, and this was mainly due to writing down of contracts of work-in-progress that amounted to RM170.97mil and allowance of doubtful debts totalling RM113.99mil.


-- by thestar.com.my