Going-concern issue will be addressed, says Eden Inc

PETALING JAYA: Eden Inc Bhd’s external auditor Messrs Ernst & Young has issued a statement on material uncertainty related to going concern in relation to the company’s financial statements for the year ended Dec 31, 2017 after its current liabilities were found to have exceeded its current assets.

Eden, which reported a net loss of RM18.56 million, saw current liabilities exceed current assets by RM62.76 million and RM97.19 million at group and company level, respectively, as at endDecember 2017. In addition, the group and the company reported operating cash outflows of RM10.99 million and RM78,213, respectively.

As at Dec 31, 2017, the group’s loans and borrowings and trade and other payables stood at RM92.73 million and RM53.87 million, respectively.

Eden, however, said with the expected full recommissioning of its power plants, recovery of amount due from Zil Enterprise Sdn Bhd, proposed issuance of redeemable convertible notes and planned disposals of land, it will be able to continually repay its outstanding borrowings/loans and creditors.

“This will reduce the current liabilities of the company. The group’s cash flow position and liquidity is expected to improve and the going concern issue of the group will be addressed,” it added.

Eden closed unchanged at 14 sen with 640,300 shares traded yesterday.