KUALA LUMPUR: The accumulated losses borne by MARA Incorporated Sdn Bhd (MARA Inc) decreased by 3.8% from RM297.63 million in 2021 to RM286.30 million in 2022, according to the 2024 Auditor-General’s Report (LKAN) Series 2.
The report said that this was contributed by the improved financial performance of the company, recording a pre-tax profit of RMI1.67 million for 2022.
“This good financial performance was contributed, among others, by gains from property investment recorded in 2022,” it said.
However, the report said that at the company level, MARA Inc recorded shareholder deficits for the assessed periods, namely in 2022 amounting to RM115.73 million, 2021 (RM114.06 million) and 2020 (RM66.82 million).
It said the main factors causing shareholder deficits were the impairment of asset values related to investments in subsidiary companies, outstanding balances within the company, and trade creditors.
Further analysis found that total assets exceeded total liabilities for 3 years, ranging from RM23.32 million (8.7%) to RM51.62 million (20%) but current liabilities exceeded current assets with ratios between 0.11 and 0.13.
“Despite an improvement in financial performance with pre-tax profits and a reduction in accumulated losses in 2022, the financial position of MARA Inc remains less stable due to its shareholder deficit and high current liabilities,” it said.
The report also said that from the financial years 2020 to 2022, MARA Inc did not pay any dividends to MARA Corporation Sdn Bhd (MARA Corp).
MARA Inc justified its non-payment of dividends to MARA Corp during this period due to current-year losses caused by the impact of the Covid-19 pandemic and high net current liabilities.
Meanwhile, MARA Inc has only settled RM9.1 million (4.6%) of loans from MARA out of the total amount of RM199.7 million obtained in 2012, 2013, and 2014 for development projects and property purchases abroad.
It added that the remaining loan balance of RM190.60 million would be settled through the implementation of Phase 3 Rationalisation Plan approved by the MARA Council on Aug 15, 2022, involving the restructuring of loan repayments which resulted in the transfer of properties amounting to RM174.24 million to MARA.
This restructuring consequently reduced MARA Inc’s debt to RM16.36 million, and the remaining loan balance must be settled through the company’s operational income.
— BERNAMA
