The Sun (Malaysia)
Scan auditors unsure of firm’s sustainability
PETALING JAYA: Scan Associates Bhd said its external auditor Baker Tilly Monteiro Heng was not able to obtain sufficient appropriate audit evidence on the group’s and company’s ability to continue as a going concern.
It told Bursa Malaysia last Friday that the auditors could not provide a basis for an audit opinion on the company’s and group’s financial statements for the period ended June 30, 2015.
The disclosure by Scan’s external auditors was in its announcement filed with Bursa Malaysia last Friday.
“As at June 30, 2015, the current liabilities of the group and the company, exceeded its current assets by RM7.22 million and RM9.07 million respectively, and recorded a capital deficiency of RM5.84 million and RM7.79 million respectively, thereby indicating the existence of a material uncertainty which may cast significant doubt about the group’s and the company’s ability to continue as going concerns,” Baker Tilly Monteiro Heng said.
The auditors were also unable to get sufficient evidence on its impairment loss amount of RM6.82 million as there was no impairment assessment being made by the directors in accordance with MFRS 136: Impairment of Assets.
Scan said its directors were constantly reviewing and monitoring the operations of the company and its subsidiaries to improve the group’s financial position.
The company said the directors would also explore opportunities and formulate a regularisation plan in accordance with its obligations pursuant to GN3 of the listing requirements of Bursa Securities.