KUALA LUMPUR (Jan 31): Revenue Group Bhd (KL:REVENUE) said its external auditors have issued a qualified opinion on the group’s financial statements for the financial year ended Sept 30, 2025 (FY2025). 

Messrs Morison LC PLT said that its qualified opinion on the group’s financial statements is in relation to the unavailability of certain executed loan agreements relating to loan receivables of RM20.56 million and related interest income of RM506,029 for FY2025. 

The group’s total loan receivables for FY2025 amounted to RM24.55 million while interest income amounting to RM2.34 million was recognised in the profit and loss of the group’s FY2025 financial statements. 

“The executed loan agreements constitute the principal contractual evidence supporting the existence of the loans and key terms and conditions governing the rights and obligations of the parties. Although the group provided alternative evidence, the absence of executed agreements limited our ability to corroborate the underlying contractual terms,” said the external auditors. 

As a result of that, the auditors said that they were unable to obtain “sufficient appropriate audit evidence” to satisfy themselves as to the existence, rights and obligations and valuation of these related loan receivables as at Sept 30, 2025, nor as to the occurrence and accuracy of the related interest income recognised during the financial year. 

Consequently, the auditors added that they were unable to determine whether any adjustments might be necessary to the loan receivables and related interest income that were reported in the financial statements. 

In response, Revenue Group’s board said in a Bursa announcement on Friday, Jan 30, that it has identified the loan accounts affected by the absence of the executed loan agreements and will seek to obtain re-execution of the loan agreements from the relevant parties to reaffirm the contractual terms. This step is expected to be completed within six months. 

“The group has engaged external legal counsel to oversee and facilitate the re-execution process, ensuring that all agreements are properly executed, legally enforceable and compliant with applicable laws and regulations,” it added. 

The group said that it will also continue to engage with the external auditors with a view to resolving the matter in future financial periods while also reviewing and strengthening its internal controls and procedures relating to the custody and maintenance of loan documentation.

“The board wishes to highlight that the qualification does not have any material impact on the group’s financial position, operations, or going-concern status. The group remains financially sound and continues to execute its business strategies to drive sustainable growth and enhance shareholder value,” it said.

Over the period of one year, shares of Revenue Group have declined 48.1%. The stock closed at seven sen on Friday, valuing the company at RM42.4 million.