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INDUSTRONICS Bhd has been classified as a Practice Note 17 (PN17) affected listed issuer after its external auditors issued a disclaimer of opinion on the group’s financial statements for the financial period ended December 31 2025, citing pervasive limitations in audit scope and insufficient audit evidence.
The auditors said they were unable to obtain sufficient appropriate audit evidence over multiple key areas, including inventories, receivables, revenue, cost of sales, cash and bank balances, and payables.
It also highlighted the absence of prior auditors’ working papers and incomplete appointment of component auditors for certain subsidiaries, which prevented them from verifying opening balances and completing group audit procedures.
Inventories were stated at RM21 million as at June 30, 2024 and RM1 million as at December 31, 2025, while trade and other receivables amounted to RM42 million and RM71 million respectively over the same periods.
Revenue and cost of sales for the 18-month period were reported at RM40 million and RM38 million, but auditors said supporting documentation such as invoices and delivery records was insufficient for verification.
The audit report also flagged going concern uncertainty, noting that the group had ceased its principal business operations after the reporting period.
Its ability to continue as a going concern depends on restructuring initiatives and financial support from related parties, for which sufficient evidence could not be obtained.
Following the disclaimer of opinion, Industronics triggered PN17 criteria under Bursa Malaysia’s Main Market Listing Requirements and is now required to submit a regularisation plan within 12 months, appoint a sponsor within three months, and comply with monthly disclosure obligations.
The company said it is still formulating its restructuring plan and will announce developments as they arise.
The post Industronics enters PN17 after audit disclaimer of opinion triggers wide financial uncertainties appeared first on The Malaysian Reserve.
