Country Garden Malaysia regional chief executive officer Fu Jinling (right) and Damansara Realty Berhad chief executive officer Brian Iskandar Zulkarim (left) looking at the property scale model of Country Garden Central Park at the sales gallery in Taman Damansara Aliff during the grand opening on Mar 4, 2017.
KUALA LUMPUR: Damansara Realty Bhd’s (DRealty) external auditors have warned of a material uncertainty that may cast significant doubt on the group’s ability to continue as a going concern.
Jamal, Amin & Partners issued a statement on the material uncertainty in respect of its financial statements for the financial year ended Dec 31, 2016 (FY16), the construction, property development and facilities management group told Bursa Malaysia.
The auditors noted that the group incurred a net loss of RM27mil during the last financial year and, as of Dec 31, its current liabilities exceeded its current assets by RM155mil.
This was “mainly arising from due and payable of developm,ent rights agreement payable to Johor City Development Sdn Bhd (JCDSB) on Dec 31, 2016,” the auditors’ statement said.
DRealty said the independent auditors had expressed unqualified opinion on the FY16 financial statements and that their opinion was not modified in respect of the statement on the material uncertainty.
It added that it had on Oct 14 last year entered into a settlement agreement with Johor Corp Bhd, its unit Johor Land and JCDSB Bhd for the proposed settlement of amount owing to JCDSB.
“The finalisation of the settlement agreement is pending approval from the Economic Planning Unit. We expect this settlement agreement to be finalised by end of the third quarter 2017,” DRealty said.
The company also said it was currently exploring options of fund raising to improve its net current liabilities position.
DRealty posted a comprehensive loss attributable to its owners of RM26.48mil for FY16, up from a loss of RM3.74mil in the preceding year.
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