Ecovis qualifies NetX’s audited accounts

> Unsure whether there should be further impairment loss on remaining goodwill for non-electronic payment services

PETALING JAYA: NetX Holdings Bhd’s external auditor Messrs Ecovis AHL PLT has qualified the group’s audited accounts for the financial year ended June 30, 2015, saying it is unsure whether there should be further impairment loss with respect to the remaining goodwill for its non-electronic payment services.

Messrs Ecovis said that it is unable to obtain sufficient appropriate audit evidence on whether the remaining goodwill for nonelectronic payments with a net carrying amount of RM10.09 million is necessary to be impaired for the financial year under review.

This is on top of the RM9.76 million that was impaired due to the carrying amount of goodwill exceeding its recoverable amount.

As the recoverable amount was determined by the management based on the cash flow forecast and projections prepared, Messrs Ecovis doubts whether the cash flow forecast and projections would reasonably reflect the future events and economic condition and that the resultant of further impairment loss on the carrying amount of goodwill should be accounted for in the financial year under review.

The board of directors of NetX have deliberated and directed the management to take necessary steps to improve the performance of the group in order to justify the carrying amount of the remaining goodwill as highlighted by the external auditor.

The external auditor added that except for the effects of the matter described in the basis for qualified opinion paragraph, the financial statement gave a true and fair view of NetX’s financial position as at June 30, 2015.