KUALA LUMPUR: Baked-dessert manufacturer, Silver Bird Bhd, which had been in the limelight this year due to a series of legal actions, sank deeper into the red in the fourth quarter ended Oct 31, with a net loss of RM18.182 million on a revenue of RM25.616 million.

In the previous financial quarter, Silver Bird posted a lower net loss of RM10.942 million on revenue of RM29 million.

“The lower revenue recorded in 4QFY2012 was mainly due to reduced demand during the fasting month. This also caused a higher loss to be recorded in 4QFY2012 in addition to losses arising from additional cost accruals and provisions,” said Silver Bird in a filing to Bursa Malaysia yesterday.

For the full year ended Oct 31 (FY2012), the company registered a net loss of RM338.03 million on the back of RM129.96 million in revenue. In contrast, the company posted RM4.622 million in net profit for FY2011.

The company said its year-on-year financial results are not comparable as findings of the forensic investigations into the financial irregularities covered the financial period up to Feb 29 this year.

According to the forensic report issued in May, Silver Bird’s trade receivables included incorrect accounting entries that could create a false audit trail, as well as inter-bank transfers masquerading as payments from the debtors.

Having been considered a PN17 company since Feb 29 this year, Silver Bird said it is currently working with KAF Investment Bank Bhd on the process of submission of its proposed regularisation plan to the relevant authorities.

Earlier this month, former Silver Bird group managing director Datuk Jackson Tan Han Kook, and executive director Ching Siew Cheong, were charged with 134 counts of cheating a bank out of more than RM67.4 million.

On Dec 7, they claimed trial in the sessions court.

This article first appeared in The Edge Financial Daily, on Dec 27, 2012.