Quick take: Ireka falls 6.4% on external auditor’s qualified opinion

KUALA LUMPUR: Shares in Ireka Corp Bhd fell over 6% in early trade after its external auditor Messrs Crowe Malaysia PLT issued a qualified opinion on its audited financial statements for the financial year ended March 31, 2021 (FY21).

The construction and property group fell 6.4%, or four sen to 58.5 sen at 9.14am. Year-to-date, the counter has risen 53.9%.

Crowe Malaysia said it was unable to obtain sufficient appropriate audit evidence on the carrying amount of the group's investment in Aseana Properties Ltd and its subsidiaries (ASPL Group) as at March 31, 2021 and the group's share of ASPL Group's profit after taxation for FY21 because it was unable to obtain access to the financial information, management, and the auditors of ASPL Group within the audit period.

Consequently, it was unable to determine whether any adjustments might have been found necessary to these balances.

Its external auditor also also highlighted that as a result of the movement control order throughout Malaysia due to the Covid-19 pandemic, Ireka management was unable to provide the documentary evidence required for certain trade and other receivables and trade and other payables of a subsidiary as they were not able to operate during that period.

The auditor said the group's basis of preparation for the financial statements for FY21, which indicated that Ireka incurred a net loss of RM25.08mil in FY21 and, as of that date, the group's current liabilities exceeded its current assets by RM40.24mil.

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Ireka , qualified opinion , Crowe Malaysia


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