Announcements

Date : 02 November 2000

AUDITORS' REPORT

WEMBLEY INDUSTRIES HOLDINGS BERHAD

TypeReply to query
Reply to Query Letter by KLSE reference IDSW-001031-38789
SubjectAUDITORS' REPORT

Contents :

We refer to the Exchange's letter dated 31 October 2000 on the qualifications made in the Auditors' Report dated 8 June 2000 to the members of the Company in respect of the audited accounts of the Group and of the Company for the year ended 31 December 1999.


The factors below gave rise to the qualifications made by the Auditors' on the carrying value of the Plaza Rakyat Project ("Project") and the going concern of the Group as the revised development plans, the proposed debt restructuring and the proposed rights issue announced on 14 December 1999 ("Proposals") have yet to be implemented.

(i) The economic crisis in 1997 and the subsequently weakening financial position of the Group has caused a delay in the development of the Project. The Proposals would enable the Group to settle its debts and provide additional funding for the development of the Project via the proposed rights issue.

(ii) The revised development includes rescheduling the development of certain components of the Project to a later date. The adjustments in respect of the revised development plans have yet to be incorporated in the accounts as the plans remain under review and pending the implementation of the Proposals. These adjustments may affect the profitability of the Project and of the Group.


In addition to the Proposals, the Group is currently seeking other sources of funding to finance the development of the Project. Currently, the Proposals are subject to the approval of the Securities Commission ("SC") and the shareholders of the Company. The Foreign Investment Committee had, on 26 February 2000, approved the proposed debt restructuring on the condition that the Company increases its Bumiputra equity to 30% by 31 December 2000 and obtain the approval of the SC.

Query Letter Contents :

We refer to your Company's Annual Report 1999.
In accordance with Section 58 of the Exchange's Main Board Listing
Requirements, kindly furnish the Exchange immediately with your detailed
explanation on the qualification stated in the Auditors' Report of your Annual
Report 1999 for public release.


Yours faithfully


LISA LAM
Senior Manager, Listing Operations

KLL/SW



Announcement Info

Company NameWEMBLEY INDUSTRIES HOLDINGS BERHAD  
Stock Name WEMBLEY    
Date Announced2 Nov 2000  
CategoryGeneral Announcement
Reference NoWI-001102-C1745

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