KUALA LUMPUR: Reneuco Bhd's share price hit limit down or fell more than 15 per cent in morning trade, after it became a Practice Note (PN) 17 company.
Reneuco's share price fell 21.43 per cent to close at 5 sen at midday. At opening of afternoon trade however it was trading at 6 sen.
It was the second most actively traded stock, with 77.9 million shares changing hands.
The renewable energy company was classified a PN17 company after its external auditor Al Jafree Salihin Kuzaimi PLT said it could not obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the company's unaudited consolidated financial statements for the period ended Sep 30, 2023.
Reneuco managed to avoid having its shares suspended from trading today, after it submitted its annual report for financial year ended 2023, within the stipulated Feb 8, 2024 deadline.
Al Jafree's decision to withhold an opinion primarily centered on doubts surrounding the accuracy of the group's trade receivables, trade payables, revenue, and costs of sales.
Al Jafree urged Reneuco's audit committee to conduct a specialised independent assessment, technical scrutiny, and cost-effectiveness evaluation of three local projects to validate the integrity of associated transactions.
The company underwent two name changes within a span of four years.
Originally known as Kumpulan Powernet Bhd, it rebranded first to KPower Bhd and subsequently to Reneuco.
Now, the group concentrates on owning assets in solar and small hydropower projects across Malaysia and Laos.
Datuk Mustakim Mat Nun, serves as both the major shareholder and executive chairman of Reneuco.
