Quick take: Asdion slips after auditor casts going concern doubts

KUALA LUMPUR: Asdion Bhd’s shares fell almost 6% in early trade Thursday after its auditor Messrs CAS Malaysia PLT cast doubt on the company’s ability to continue as a going concern.

The counter fell 5.95%, or 2.5 sen to 39.5 sen. So far this year, the counter has appreciated some 90%.

CAS has issued an unmodified audit opinion with a material uncertainty related to the group’s ability to operate as a going concern.

The auditor drew attention to the group’s net loss of RM4.02mil for the financial year ended Sept 30, 2020 (FY20) and its net current liabilities position of RM5.64mil as at the end of FY20.

“The ability of the company to operate as a going concern is dependent on the successful outcome and implementation of the current business plans including the progressive uplifting of restriction on travelling, to generate sufficient cash in the future to fulfil their obligations as and when they fall due,” CAS said.

The auditor added that the financial statements of Asdion do not include any adjustment relating to the amount and classification of assets and liabilities that might be necessary, should the group be unable to continue as a going concern.

CAS said these conditions indicate that a material uncertainty exists that “may cast significant doubt on the company’s ability to continue as a going concern”.

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