KUALA LUMPUR (Nov 1): YNH Property Bhd's (KL:YNHPROP) external auditor has cast doubt on the property developer’s financial statements for the year ended June 30, 2024 (FY2024), citing insufficient evidence for certain ventures and contracts.
Morison LC PLT noted that during FY2024, certain turnkey contracts were terminated or deemed incomplete, leading to the reclassification of RM66.88 million from inventories to other receivables, with the remaining RM1.03 billion recorded as inventories, according to YNH’s stock exchange filing.
“Despite extensive audit procedures performed by us to address these developments, the outcome of the regulatory authorities' investigation remains unknown and the special independent review by the group is still pending completion,” Morison said in issuing the qualified opinion.
An auditor may issue a ‘qualified opinion’ when it could not fully vouch for a company’s accounts due to some concerns within the financial statements.
Morison was appointed in March this year following several delayed disclosures of YNH’s operations, and came on board after Baker Tilly Monteiro Heng PLT issued a qualified opinion on YNH’s financial statements for the 18 months ended June 30, 2023.
Baker Tilly refused reappointment as YNH’s external auditor and requested YNH to conduct a special review following investigations by regulatory authorities regarding joint venture and turnkey contracts signed for development work with joint venture parties or landowners.
YNH’s wholly owned unit Kar Sin Bhd had terminated three joint ventures under turnkey construction agreements signed for projects in Mukim Belanja and Mukim Batu since March 2024. The company is in pursuit of the money paid for the agreements.