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OTHERS AGESON BERHAD ("AGESON" OR THE "COMPANY") - STATUS UPDATE ON THE INDEPENDENT ASSESSMENT

AGESON BERHAD

Type Announcement
Subject OTHERS
Description
AGESON BERHAD ("AGESON" OR THE "COMPANY")
- STATUS UPDATE ON THE INDEPENDENT ASSESSMENT

Reference is made to the Company’s announcement made on 16 January 2024, 25 March 2024 and 2 May 2024. Unless otherwise defined herein, all terms and definitions used herein shall be the same as those defined in the previous announcements.

 

The Board of Directors of AGESON wishes to announce that Virdos Lima Consultancy (M) Sdn Bhd (“VL Consultancy”) has completed the independent assessment. The issues and matters raised by the Company’s external auditors in the Audited Financial Statements for the financial period ended 31 December 2022 has been addressed accordingly.

 

Following is the management response from the independent assessment on the disclaimer opinion of AGESON’s audited financial statements for FPE 31 December 2022:

 

No.

Disclaimer Opinion

Management Response from the Independent Assessment

1.

Disclaimer on Revenue Generated from Trading of Construction Materials

 

Ageson SMSGMBH Sdn Bhd

The Company recorded revenue from trading of polyester plywood and cost of sales in the statement of profit or loss and other comprehensive income for the period ended 31 December 2022 amounting to RM412,959,680 and RM322,180,800. We were unable to obtain sufficient appropriate audit evidence to satisfy ourselves on the revenue. Consequently, due to substantial of the amount involved, we were unable to determine whether any adjustments to these amounts were necessary.

The assessment on the sale transactions was conducted on customer purchase orders, invoices issued to customers and delivery orders to customers.

 

In addition, VL Consultancy had traced the customers payments to the corresponding sale invoices. The alignment of sales transactions and payments with third-party documentation (i.e., customer statements of account and balance confirmations) verifies the accuracy of the records.

 

It was noted no irregularities based on the analysis on the respective customer’s audited financial statements.

 

Site visit was conducted at the delivery locations specified in the delivery orders for both companies found no irregularities.

 

 

 

 

 

Ageson Power Sdn Bhd

The Company recorded revenue from trading of polyester plywood and cost of sales in the statement of profit or loss and other comprehensive income for the period ended 31 December 2022 amounting to RM26,078,720 and RM20,841,600. We were unable to obtain sufficient appropriate audit evidence to satisfy ourselves on the revenue. Consequently, due to substantial of the amount involved, we were unable to determine whether any adjustments to these amounts were necessary.

 

The assessment on the sale transactions was conducted on customer purchase orders, invoices issued to customers and delivery orders to customers.

 

In addition, VL Consultancy had traced the customers payments to the corresponding sale invoices. The alignment of sales transactions and payments with third-party documentation (i.e., customer statements of account and balance confirmations) verifies the accuracy of the records.

 

It was noted no irregularities based on the analysis on the respective customer’s audited financial statements.

 

Site visit was conducted at the delivery locations specified in the delivery orders for both companies found no irregularities.

 

2.

Veracity of the fair value balances of Ageson Berhad’s other receivables carried in the statement of financial position, amounting to MYR43,301,840

 

Ageson Berhad

The balances of the Company’s other receivables carried in the statement of financial position, amounting to RM43,301,840 as at 31 December 2022. The Company did not provide impairment for the other receivables which their recoverability is doubtful. The Company involves is Prinsiptek International Limited. Provision for impairment is required by MFRS 9: Financial Instruments. Had such losses been provided for, the effects would have been to increase loss before taxation and reduce other investments for the period by RM1,799,065. Accordingly, accumulated losses as at 31 December 2022 would also have been increase by RM1,799,065.

 

Based on the independent assessment, it was noted that Ageson Berhad’s other receivables totalled MYR 43,301,840 as of 31 December 2022. Of this amount, Prinsiptek International Limited owes MYR 1,799,065. The entire amount has been fully impaired by the Company for the financial year ending 31 December 2023.

 

The remaining balance of MYR41.5 million pertains to the stakeholder sums held under Ageson’s panel legal firm.

3.

Dispute on Valuation of Intangible Assets in Ageson Industrial

 

Ageson Industrial Sdn Bhd

The balances of the Company’s property, plant and equipment carried in the statement of financial position, amounting to RM138,471,667 as at 31 December 2022. The Company recognizes its property, plant and equipment based on cost model. As a results, there is deferred tax liability of RM13,699,200 reported in the financial statement. No impairment loss of asset being assessed during the period ended as indication of impairment is noted during our review which contrary with the standards requirement. We were not provided with the sufficient and appropriate supporting documents for the valuation of the asset. Consequently, due to substantial of the amount involved, we were unable to determine whether any adjustments to these amounts were necessary

Based on the independent assessment, the valuation report appears to be supported, and the personnel responsible for the valuation possess the requisite credentials and qualifications.

 

 

 

 

Pursuant to the above, the Company wishes to highlight that there are no material adverse findings on the concerns raised by Company’s external auditors. The Company will work closely with the potential auditor to address the above in the audited financial statements of Ageson for the financial period ended 30 June 2024.

 

This announcement is dated 14 May 2024.






Announcement Info

Company Name AGESON BERHAD
Stock Name AGES
Date Announced 14 May 2024
Category General Announcement for PLC
Reference Number GA1-10052024-00040



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