KUALA LUMPUR (Oct 26): Multi Usage Holdings Bhd (MUH)’s external auditor Messrs UHY has on Wednesday (Oct 26) issued a qualified opinion on the company’s financial statements for the financial year ended June 30, 2022 (FY22).

UHY said it is unable to determine the nature of relationship between the company and its relevant subsidiaries, as well as a special purpose vehicle (SPV) in relation to a series of debt restructuring exercises to its lenders.

The debt restructuring exercises were done in 2009 to clear MUH’s debts by entering into several agreements with the SPV and the lenders, according to Multi-usage’s annual reports.

However, a special audit in 2016 found that the SPV, Wealthy Achiever Sdn Bhd, made an estimated profit of RM10.4 million, and is connected to certain MUH directors.

An internal investigation ensued involving its then director Tan Chew Hua, but was not completed. Later, MUH obtained a court order to terminate Tan’s directorship in 2017.

That same year, the first qualified opinion was issued by MUH’s then-auditor Messrs Baker Tilly Monteri Heng (Baker Tilly) on the nature of relationship between company and the SPV. Baker Tilly resigned in 2018, and UHY has been issuing qualified opinions since then.

By October 2019, Tan was no longer a substantial shareholder in MUH.

In MUH’s filing on Wednesday, UHY said other than the matter described in the qualified opinion, the financial statement gives a true and fair view of the financial position of the group.

MUH added that the board will seek professional advice on additional procedures to complement the existing issues that are highlighted in the auditor’s report, which contains a qualified opinion by the company’s predecessor auditors.

Barring any unforeseen circumstances, the Penang-based property developer expects to resolve the issues relating to the qualified opinion in the coming financial year.

Since the special audit outcome was released in 2016, MUH had been loss-making for five years up until the year ended June 30, 2020 (FY20).

The group turned to profit in FY21. In FY22, the company’s net profit grew 33.17% to RM8.17 million from RM5.46 million, as revenue slipped to RM20.28 million, compared with RM20.39 million a year ago.

As at October 2021, MUH’s largest shareholder is the Ang family, controlling some 31.38% stake, led by MUH executive chairman Ang Kim Cheng @ Ang Teng Kok.

Multi Usage shares closed unchanged at 51 sen on Wednesday, giving it a market capitalisation of RM28.77 million.