Thursday 28 Mar 2024
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KUALA LUMPUR: Scanwolf Corp Bhd, which is involved in property development as well as the design and manufacturing of plastic extrusions, has appointed PKF Covenant to conduct an investigative review of the company’s operations.

In a filing with Bursa Malaysia yesterday, Scanwolf (fundamental: 0.75; valuation: 0.3) said the appointment was due to “insufficient measures, severe discrepancies and possible irregularities in the implementation of its development projects, which were discovered during a review of the management, operation and practice of certain projects and their contract management processes”.

It said those findings had caused the board of directors to be concerned about possible lapses in corporate governance in the affected projects, as well as in other activities of the group.

“The scope to be undertaken by PKF Covenant is to review the organisation, reporting structure and financial affairs of the company, particularly those relating to its property development division, thereby facilitating improvements to its corporate governance policies and the deliberations of the board of directors of Scanwolf on the possible courses of action to be taken in respect of its findings,” the company added.

Scanwolf expects the full review to be completed within eight weeks.

Scanwolf is also involved in polyvinyl chloride (PVC) compounding, processing of PVC coils for home and office fittings, trading of industrial consumables as well as other building materials.

According to the company’s annual report for the financial year ended March  2014, 60% of its revenue came from manufacturing sales, while 34% was from property development. The remaining 6% was from management fees received from its subsidiaries.

Scanwolf shares fell 3.57% to 81 sen yesterday, giving it a market capitalisation of RM67.13 million.

 

This article first appeared in The Edge Financial Daily, on April 24, 2015.

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