Auditors issue disclaimer of opinion on Bina Goodyear's accounts

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KUALA LUMPUR (Oct 30): The external auditor of Bina Goodyear has issued a disclaimer of opinion on the company's financial statements for the year ended June 30, 2014.

"We were unable to obtain sufficient appropriate audit evidence regarding the ability of the group and the company in achieving sustainable and viable operations and its ability to generate sufficient cashflows for its operating activities," said its external auditors Messrs Morison Anuarul Azizan Chew in a statement that was filed with Bursa Malaysia this evening.

"We have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Accordingly, we do not express an opinion on the financial statements," it added.

Bina Goodyear has fallen into a Practice Note 17 status since November 2012. Its shares have been suspended from trading since August.

As at June 30 this year, the group and company had net liabilities of RM95.05 million and RM98.41 million respectively. There were deficits in shareholders' funds and the company had a defaulted term loan amounting to RM6 million as at June 30.

The company also had a net carrying amount due from customers of RM20 million.

"The amount relates to long outstanding retention sums and backcharges for completed projects for which the certified final accounts have yet to be finalised, thereby indicating a material uncertainty over the accuracy and recoverability of these amounts," it said in the statement.

On Sept 10, the High Court of Malaysia had issued a winding up order to the company.

The statement said the ability of the group and company to continue operations would depend on a favourable outcome of the appeal against the winding up order, a timely submission of a new regularisation plan to Bursa and a favourable outcome from negotiations of material litigation with bankers and suppliers.