Quick take: Asia Media falls 10% on auditors' disclaimer of opinion

KUALA LUMPUR: Shares in Asia Media Group Bhd fell over 7% in early trade Thursday after its auditor issued a disclaimer of opinion on financial statements.

The advertising and digital media solutions and services provider fell 10.71%, or 1.5 sen to 12.5 sen at 9.38am.

Asia Media said its external auditor Messrs CAS Malaysia PLT was unable to express an opinion on the group’s financial statements for the financial period ended March 31, 2021.

The PN17 company's auditor highlighted that there are material uncertainties that may cast significant doubt on the group's ability to continue as a going concern.

CAS said it was unable to satisfy itself as to whether the opening balances as of Oct 1, 2019 did not contain misstatements that may materially affect the financial performance, cash flows and financial position of the group for the financial period ended March 31 2021.

The auditor also said it was unable to obtain sufficient appropriate audit evidence pertaining to the accuracy of trade payables balances amounting to RM469,549; other payables and accruals amounting to RM300,967 and RM15,704 respectively; non-controlling interests totalling RM234,357; and other income of RM516,000.

It noted that Asia Media’s financial statements were prepared on the assumption that the group would continue as a going concern.

In the independent auditor's report, Asia Media's board said it is of the opinion that the preparation of the financial statements on a going concern basis remains appropriate given that it is taking several measures to mitigate the issues and to meet its obligations falling due within the next 12 months.

The board revealed that Asia Media will be signing new business contracts with potential customers, which are in various stages of negotiation.

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