Thursday 28 Mar 2024
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KUALA LUMPUR (Jan 19): The external auditors of NWP Holdings Bhd have issued a qualified opinion on the group’s financial statements for the financial year ended Aug 31, 2017 (FY17), noting that it was unable to obtain sufficient audit evidence to determine the effect of several items on its financial accounts.

These include the carrying amount on NWP’s investment in an associate, the carrying amount of an acquired yacht and details on other receivables, according to the independent auditors’ report by Messrs Ecovis AHL PLT to the group today.

“The management is of the view that no impairment is required on the carrying amount of the group’s investment in an associate and the yacht,” Ecovis said in its report.

The timber products and kiln-drying services provider’s investment in an associate had a carrying amount of RM1.72 million, for which the management neither performed an impairment test nor assessed.

Meanwhile, no annual depreciation or impairment had been made on the carrying amount of a RM1.56 million yacht.

“We were unable to determine the effect of adjustments, if any, on NWP’s financial statements,” said Ecovis as it was unable to obtain sufficient audit evidence to assess the carrying amount.

On the subject of RM6.5 million worth of advances made to Listari Marina (MM2H) Sdn Bhd, the management had also considered it unnecessary to make an impairment as the amount is considered recoverable.

“We were unable to obtain sufficient evidence to determine the recoverability of these advances,” Ecovis said.

It added that it could not ascertain the recoverability of a RM4.1 million partial payment for the acquisition of a 30% equity interest in Aviation A.I. Inc in the event the acquisition did not materialise.

The group had also made during the year a RM100,000 donation to Pusat Khidmat Komuniti in Sabah, of which one of the directors of a subsidiary is a registered owner.

“We are unable to obtain sufficient appropriate audit evidence to ascertain the occurrence and nature of this transaction,” Ecovis said.

Shares in NWP are set to resume trading on Monday (Jan 22) after the group published its FY17 annual report today.

Trading in the shares of NWP was halted since Jan 10 after it had failed to submit its annual report for FY17 by Dec 31 last year. It last closed at 14 sen, giving the group a market capitalisation of RM53.51 million.

NWP saw its net loss for FY17 widen to RM11.15 million from RM2.9 million the year before though revenue rose 27.11% to RM16.12 million on the back of an increase in timber-related products.

“The increase in loss was due to equity settled share-based payment expenses of RM8 million,” NWP chief executive officer Datuk Seri Kee Soon Ling said in the group’s annual report.

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