KUALA LUMPUR: Sarawak Cable Bhd
's external auditor, Baker Tilly Monteiro Heng PLT, has expressed a disclaimer of opinion on the company's audited financial statements for the financial year ended Nov 30, 2024 (FY2024).
Baker Tilly Monteiro Heng said it had not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on Sarawak Cable, a Practice Note 17 (PN17) company's financial statements.
In the audit report filed with Bursa Malaysia today, Baker Tilly Monteiro Heng said during FY2024, the power solutions provider incurred net losses up to RM343.7 million and its current liabilities exceeded its current assets by RM414.5 million.
It also said the company recorded a capital deficiency of RM397.5 million during the financial year.
Sarawak Cable announced that it had triggered the PN17 criteria on Sept 30, 2022.
Baker Tilly Monteiro Heng said although the group has formulated a proposed regularisation plan to regularise its financial conditions, the directors of the company have not finalised the whole plan.
The external auditor also said it had not been provided with the cash flow forecast incorporating the effects arising from the proposed regularisation plan to assess the ability of the group.
"Accordingly, we are unable to obtain sufficient appropriate audit evidence to support the validity of the assumption adopted by the directors in preparing the financial statements on a going concern basis," it said.
On the company's inventories amounted to RM7.5 million as at Nov 30, 2024, as disclosed in the financial statements, Baker Tilly Monteiro Heng said it had not been able to obtain sufficient appropriate audit evidence to ascertain the accuracy of the cost of inventories, and the net realisable value of inventories during FY2024.
"Consequently, we are unable to satisfy ourselves as to the appropriateness of the carrying amount of the group’s inventories as at Nov 30, 2024.
"In the absence of sufficient appropriate audit evidence, we are also unable to ascertain the appropriateness of purchases and write-offs recognised in the profit or loss and any further write-down on inventories to be recognised in profit or loss for the financial period ended Nov 30, 2024, and the related disclosures, if any," it said.
Other concerns that Sarawak Cable was unable to satisfy the external auditor included the trade and other receivables of the group as at Nov 30, 2024, which amounted to RM25.0 million and RM34.3 million respectively, its cash and bank balances of the group which amounted to RM1.2 million as at Nov 30, 2024, as well as the income tax.
Baker Tilly Monteiro Heng said it was also unable to obtain sufficient appropriate audit evidence to ascertain the group’s revenue worth RM358.8 million as at Nov 30, 2024. - Bernama
