Kamdar Group will seek legal advice on how to recover RM8.84m funds

PETALING JAYA: Kamdar Group (M) Bhd will seek legal advice on how to recover RM8.84 million taken out through four non-business transaction withdrawals from Kamdar Sdn Bhd (KSB).
In a filing with Bursa Malaysia last Friday, the group said special auditors found that there were four such withdrawals amounting to RM8.84 million from KSB's bank accounts from March 23 to March 26, 2005 by two individuals who were officials of the group at that time. The officials were not named in the filing with Bursa Malaysia.
All the cheques and instructions for the transactions were signed by one of the individuals.
Pursuant to this, several shareholders advanced a sum of RM 8.76 million to KSB from March 28, 2005. There is no conclusive proof as to what these advances were for.
The group said its special auditors concluded that in the general ledger of KSB, the transactions were wrongly recorded and the financials were misstated to indicate that they were loans taken by a former director and were subsequently set off by the advances from the shareholders.
The special auditors are of the opinion that while there is no impact on the profitability of the company, the balance sheet for that particular and subsequent years should have reflected them as "assets: amount due from director/other receivables – RM8.84 million; liability: amount due to shareholders – RM8.76 million".
The group said it will if necessary lodge reports with the police and other relevant authorities; consult the auditors on the reclassification and inclusion of the debt and assets into the group's general ledger, review the current internal control process to ensure that similar transactions will not recur and seek advice on the advances and consult with relevant parties and if necessary repay all advances that are rightfully and lawfully claimed.
Kamdar shares closed up 2.5 sen at 80 sen on Friday.