OTHERS Appointment of Investigative Accountant

IRE-TEX CORPORATION BERHAD

Type Announcement
Subject OTHERS
Description
Appointment of Investigative Accountant

Reference is made to Ire-Tex Corporation Berhad’s (“ITCB” or “the Company”) announcement on 5 May 2015 and replies to Bursa Malaysia Securities Berhad’s (“Bursa Securities”) query letter on 11 May 2015 and 20 May 2015 with regards to the Qualified Opinion issued by the Company’s auditors on the Audited Financial Statements for the financial year ended 31 December 2014.

The auditors had emphasised the following two (2) transactions in their report for the Audited Financial Statements:

a)    Agreement between the Company’s wholly owned subsidiary Zoomic Automation (M) Sdn Bhd (“ZASB”) with a supplier, Future Rank Sdn Bhd ("FRSB") for the purchase of machinery amounting to RM16.5 million. Subsequently, the Group entered into an agreement with a separate supplier, Sanjung AMS Sdn Bhd (“AMS"), to revamp and upgrade the existing machines amounting to RM16.0 million. The Group also entered into a tripartite agreement to assign the debt of RM10.7 million owing from the initial supplier FRSB to AMS. The debt of RM10.7 million is derived from RM11.5 million less a cancellation penalty of RM0.8 million; and

b)    Agreement between ITCB with a supplier, Midstream Resources Sdn Bhd (“MRSB") for the implementation of Lean Manufacturing program amounting to RM2.0 million.

The Board of Directors of ITCB had sought legal advice on the agreements and subsequent transactions made between ZASB, FRSB, ITCB, MRSB and AMS and was advised to conduct detailed investigation on the said transactions.

The Board of Directors wishes to inform that the Company had on 10 June 2015 appointed Ferrier Hodgson MH Sdn Bhd as Investigative Accountant (“IA”) to conduct a thorough review of the transactions made between ZASB, FRSB, ITCB, MRSB and AMS.

The Board of Directors will provide an update to the shareholders should there be any material development on the above matters.

 

 

 

 

 






Announcement Info

Company Name IRE-TEX CORPORATION BERHAD
Stock Name IRETEX
Date Announced 11 Jun 2015
Category General Announcement for PLC
Reference Number GA1-11062015-00040