PLB Engineering addresses its auditors’ concerns

PETALING JAYA: PLB Engineering Bhd’s external auditors Messrs Grant Thornton Malaysia PLT have expressed a material uncertainty related to going concern of the company and its subsidiary from the audited financial statement for the financial year ended Aug 31, 2023.

In a filing with Bursa Malaysia, PLB stated the concern was regarding to the group and company’s current liabilities exceeding its their current assets by RM82.36mil and RM25,422,575 respectively.

The group also recorded negative cash flow from operating activities, indicating the existence of material uncertainties which may cast significant doubt on the ability of the group to continue as a going concern.

“The continuation of the group and the company as a going concern is dependent on the successful sales of its assets, completion of its ongoing construction projects and continuous financial support from its bankers,” said the statement.

In response, PLB said the group was awarded a construction project worth RM44.64mil last August.

“The current ongoing external construction projects, which are located at Simpang Ampat-Seberang Perai Tengah, Penang Island and Padang Meha-Kulim Kedah, are expected to contribute to the group’s turnover with the unbilled sales of RM32.65mil over the year,” it said.

On top of that, the property development sector has been encouraging, notably the affordable housing in Paya Terubong called The Dew.

“The Dew which comprises 281 units of 1,000 sq ft affordable housing scheme achieved 30% physical completion and 69% of sales with sale and purchase agreement signed at unbilled sales of RM59.95mil,’ it added.

PLB said it is actively looking for parties to acquire its land in which the proceeds will go towards bank borrowings that will turn around its net current liabilities position.The group is also participating in projects tendering to increase the opportunity of securing new projects while closely monitoring the progress to ensure that its projects are completed within the contract period.

“The directors believe that with the improving outlook of the property market and continued support from the bankers, the group is able to generate sufficient cash to meet the obligations and working capital of the group,” it noted.