KUALA LUMPUR (Feb 9): Reneuco Bhd’s share price fell as much as 14% in Friday’s early trade after the company slipped into the Practice Note 17 (PN17) status, attributed to its auditors issuing a disclaimer of opinion on the unaudited consolidated financial statements for the period ended Sept 30, 2023.
The counter then pared its losses to 6.5 sen — down half a sen or 7.14% — valuing the group at RM67.32 million. It was the fourth active stock with 35.64 million shares traded, more than double its 200-day average volume of 13.26 million.
Reneuco has fallen over 72% year-to-date and 78% in the past year.
Its external auditor Al Jafree Salihin Kuzami PLT entered the disclaimer of opinion as it could not obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the group’s financial statements.
The auditor's basis for the disclaimer of opinion mainly revolved around the veracity of the group’s trade receivables, trade payables, revenue and costs of sales.
Al Jafree has requested Reneuco’s audit committee to conduct a special independent review, technical due diligence and cost-performance review on three local projects to ascertain the veracity of transactions related to them.
For FY2023, the group posted a net loss of RM117.04 million, versus a net profit of RM6.04 million in FY2022, while revenue fell 54% to RM64.6 million from RM140.38 million.
The group has cash and bank balances of RM14.5 million as at FY2023, with deposits and prepayments amounting to RM9.83 million, while also bearing short-term borrowings of RM20.78 million and long-term borrowings of RM73.63 million.