Goodway Integrated Industries Bhd has appointed an external independent professional firm to undertake an assessment of impairment on the carrying amount of plant and equipment, and inventories for the financial year ended Dec 31, 2016.

In a filing with Bursa Malaysia, Goodway said it appointed Messrs PKF Business Services Sdn Bhd for the assessment, which is expected to be completed by Aug 30.

In April, Goodway announced that it is establishing an investigation committee to probe alleged irregularities highlighted by its external auditor with regards to its FY16 accounts.

The group’s external auditor, Messrs Kreston John & Gan, had expressed a qualified opinion on Goodway’s FY16 financial statements.

The alleged irregularities comprised impairments worth a total of RM45.5 million, for which the auditor said it was not able to obtain sufficient appropriate audit evidence on the carrying amount of the plant and equipment of RM34.11 million and inventories of RM11.4 million.

Goodway’s management, however, is of the view that no impairment is required on the carrying amounts of the plant and equipment, and inventories.

Goodway’s losses widened to RM42.42 million or 38.39 sen a share in FY16, from RM9.35 million or 8.46 sen a share in FY15. If not for the two carrying costs, Goodway’s FY16 results would have been in the black to the tune of RM3.12 million.

The group’s revenue declined 7.23% to RM168.25 million, from RM181.36 million in FY15.

Goodway’s share price gained 1.5 sen or 6.38% to 25 sen today, giving it a market capitalisation of RM27.63 million. Year-to-date, the counter has fallen 60.94% from 64 sen on Jan 3.

Source: The Edge