Auditor issues qualified opinion on Eka Noodles FY16 financial statements

PETALING JAYA: Eka Noodles Bhd, whose chairman Datuk Sohaimi Shahadan and executive director Datuk Seri Chin Seak Huat resigned on Tuesday, was yesterday issued a qualified opinion on its audited financial statements for the financial year ended Dec 31, 2016 (FY16) by its external auditor, Afrizan Tarmili Khairul Azhar.
In a filing with Bursa Malaysia yesterday, the auditor said the preparation of the company’s financial statements for FY16 on a going concern basis is no longer appropriate as the company has ceased operations with no immediate intention to resume businesss.
“Accordingly, the financial statements, expressed in ringgit, are prepared on a basis that the company is not a going concern and on the breakup basis. The actual values realised may differ from the carrying values of assets and liabilities included in these financial statements,” it said in an independent auditor’s report.
The auditor said it is unable to obtain sufficient appropriate audit evidence to determine the estimated realised values of the company’s property, plant and equipment as the company is unable to provide a clear basis for arriving at the value of those assets in the statement of financial position.
It said the audit evidence obtained is sufficient and appropriate to provide a basis for its opinion.
Eka Noodles has been a Practice Note 17 (PN17) since September last year. PN17 companies are those that are in financial distress.
On Tuesday, Sohaimi and Chin announced their resignations, citing personal work commitments. This follows the resignations of independent non-executive director Yee Yit Yang in April and two other directors, Datuk Ahmad Zaffry Sulaiman and Raja Nazrin Raja Ghazilla in March.