KUALA LUMPUR: APB Resources Bhd
has addressed the modified opinion issued by auditors in its financial statement pertaining to deposits amounting to RM22.78mil.
In a statement, the group said, as disclosed in the financial statements, it had made several deposit payments to several parties consisting of 50% advance payments related to a contract sum.
The contract was related to the upgrading and construction of office premises and factories, payments for ERP software consultation and implementation services, advance payments for the supply of pipes, 25% partial payments towards the purchase consideration for acquiring a company, and advance payments for project tenders.
However, the group said the transactions were subsequently aborted and the entire deposits fully refunded.
Despite the refunds, the auditors have recommended that the group undertake extensive procedures to verify the business rationale of these transactions and assess any potential non-compliance with applicable laws and regulations.
APB said it has engaged a professional firm to conduct a thorough review of these transactions and has appointed a legal firm to determine if there were any instances of non-compliance with applicable laws and regulations.
The group emphasised that these transactions, which were initiated under the direction of a former director, will not impact the operational performance or cash flow of the company. It added that its business continues to operate as usual.
"The modified opinion issued by our auditors is being taken very seriously, and we are committed to conducting a thorough and comprehensive review of the transactions in question.
"We have already taken proactive measures by engaging independent professionals to assess the business rationale and legal compliance of these transactions.
"We believe that transparency and accountability are the cornerstones of our operations, and we are working diligently to address these concerns," said the management team of APB.
