KUALA LUMPUR (Jan 7): Ecobuilt Holdings Bhd (KL:ECOHLDS) said its external auditor HLB Ler Lum Chew PLT has expressed a qualified opinion on the group’s audited statements for the financial year ended Aug 31, 2024 (FY2024), as well as flagged a material uncertainty that cast doubt on the group’s ability to continue as a going concern.
The qualified opinion is due to the auditor not being able to obtain sufficient and appropriate audit evidence to ascertain the accuracy of the builder’s trade payables, which amounted to RM91.47 million recorded at the end of its FY2024, Ecobuilt’s bourse filing on Monday showed.
This is because the auditor could not obtain relevant supporting documents “to ascertain the existence, completeness and accuracy by alternative means” for certain trade payable balances as at Aug 31, 2024.
It also could not find sufficient evidence to ascertain the existence, accuracy and recoverability of the group’s recorded advance payment to suppliers and sub-contractors that amounted to RM4.65 million as at end-FY2024.
Hence, it was not able to determine the completeness and accuracy of the purchases and other direct costs attributable to the group’s construction activities for FY2024, nor could it determine if any adjustment was needed on the impairment loss recognised during the year.
The auditor also drew attention to the fact that Ecobuilt had incurred a net loss of RM44.48 million at the group level and RM43.91 million at the company level for FY2024, and that its current liabilities exceeded its current assets by RM19.31 million at the group level, and by RM838,925 at the company level.
“These indicate that a material uncertainty exists that may cast significant doubt about the group’s and the company’s ability to continue as going concerns,” the auditor said.
In response, Ecobuilt’s board of directors said it would reconcile all trade payables and advance payments, ensure variances are resolved and supporting documents are properly obtained and maintained, and subsequently strengthen the group’s record-keeping system and ensure documents are properly maintained.
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Source: EdgeProp.my
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