Megan Media (MMHB) Accounting Scandal
Megan Media (MMHB) Accounting Scandal
(MMHB)
ACCOUNTING
SCANDAL
By Safia Abdullahi (TP050391)
Lyudmila Pak (TP032172)
Azka Mohamed (TP052097)
MEGAN MEDIA
Megan Media was established in 1994
The principal activity of the company and its subsidiaries is the manufacturing and marketing of
electronic data storage products, such as diskettes, video tapes, and recordable compact discs.
It has become the first Malaysian company to receive pioneer status from the Ministry of International
Trade and Industries for manufacturing magnetic and optical data storage products.
On August 8, 2000, MMHB was listed onto the Second Board of the Kuala Lumpur Stock Exchange.
FAKE REVENUE REPORTS TO
BURSA MALAYSIA
Based on the above figures, a large amount of its past revenue has been falsified, so its failed to submit
its regularization plan to Stock Exchange
For the financial year ending in 2007, the company had incurred a net loss of RM 1.27 billion and a
negative cash flow of RM 897 million.
Therefore, the company could not survive as its financial health had deteriorated and it was delisted in
April 2008
• Quick Ratio and Short Term Cash Adequacy shows a tight cash flow and current
assets might not be sufficient to cover the debts.
Interest coverage in 2007 is negative 24.12 which means the company is burdened by
debts
Payments to all trading creditors were actually made to other parties in an attempt to
MMHB reported an unaudited loss of RM1.3 billion for its fiscal year ended April
MMHB's total equity stands in deficit to the tune of nearly RM797 million and its net
liability per share is nearly RM4 compared to a net tangible asset per share of
RM2.31 in FY 2006.
CONSEQUENCES
• Company delisted from Bursa Malaysia
• The shareholder loss can be examined by seeing a drop of 85% of the company share price
over the period of three months after the news become known to the public (from as high
as RM0.60 to RM0.04).
• Former Megan Media Holdings Bhd executive chairman and
director Datuk Dr Mohd Adam Che Harun has been sentenced to 18 months in jail for
providing false revenue figures to Bursa Malaysia Securities Berhad.
• Sessions Court judge Zulqarnain Hassan also fined the 74-year-old Adam RM300,000 in
default one year’s jail
• SC has also obtained a warrant of arrest against George Yeo Wee Siong who was the
executive director of MMHB at the material time.
THANK YOU!