KUALA LUMPUR (Oct 17): Sustainable energy and healthcare group Sedania Innovator Bhd (KL:SEDANIA) said its external auditor has issued a qualified opinion on the group’s financial statements for the financial year ended June 30, 2025 (FY2025).

Baker Tilly Monteiro Heng PLT noted in its qualified opinion that Sedania’s share of profit and other comprehensive income from its associate company amounted to RM777,100 and RM9,508, respectively, while the equity-accounted carrying amount of the investment stood at RM4.46 million as at end-June 2025, according to the group's bourse filing on Friday.

However, the associate was unable to provide timely financial information to its own auditors, resulting in the audit of the associate not being completed for FY2025, Baker Tilly noted.  

Consequently, Baker Tilly was unable to obtain sufficient and appropriate audit evidence on the carrying value of Sedania’s investment in the associate and its share of profit and other comprehensive income for the year, according to the qualified opinion.

“Therefore, we could not determine the effect of adjustment, if any, on the financial position of the group as at June 30, 2025 and on its financial performance for the financial year then ended," the external auditor said in its report. “We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.”  

In response, Sedania said the qualified opinion is expected to be resolved in the next financial year, once the component auditor of the associate company issues its final audited report.

The group added: “The company, together with its external auditors, is actively engaging with the associate company and the group’s component auditors to expedite the completion of the associate company’s audit for the financial year ended 30 June 2025.”  

Shares of Sedania fell 2.5 sen or 8.77% to close at 26 sen on Friday, valuing the group at RM94.99 million.