Business News

Bright Packaging financial statements verified

Thursday, 21 February 2013

PETALING JAYA: Chartered accountants Crowe Horwath have verified Bright Packaging Industry Bhd’s financial statements for the five months ended Jan 31, 2013, after the Minority Shareholder Watchdog Group raised concerns over possible accounting irregularities and cash-flow deficiency, among others.

Bright Packaging, in a filing with Bursa, attached a Crowe Horwath report that said: “Based on the work performed, nothing has come to our attention to raise any doubt on the nature and authenticity of the amount owing to a deceased former director, Wong Yet Long, and amount owing to a related party, Wylong Holdings Sdn Bhd as disclosed in the audited financial statements for the financial period ended Jan 31, 2013 and Aug 31, 2012 respectively.”

Bright Packaging had stated that RM8.6mil advances from Wylong Holdings had been carried in the books since 2007 and the RM2.2mil due to a director was to late chairman Yet Long, who had advanced the money to alleviate the tight cashflow of the company in 2004.

It also clarified that the advances were interest free and had not increased from the date and were already disclosed in the audited financial statements up to Aug 31, 2012.

Besides that, its previous external auditor Ernst &Young (E&Y) has explained that its resignation as the company’s auditor was because both parties were unable to “agree to a fee which is mutually acceptable”, according to the announcement.

One of the questions raised was why the company’s long-standing auditor E&Y was replaced last year.

To recap, four shareholders of Bright Packaging – who collectively own about 31% in the company – had requisitioned an EGM today to remove managing director Wong See Yaw, executive director Yap Kok Eng, non-independent non-executive director Wong Siew Yoong and independent non-executive director Yeap Cheng Chuan as well as any new directors who might be appointed from the date of the requisition to the date of the EGM.

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