PETALING JAYA: Advance Information Marketing Bhd
(AIM) has been flagged for material uncertainty by its external auditor, Messrs SBY Partners PLT.
AIM, a provider of business solutions, recorded a net loss of RM21.79mil for its financial year ended June 30.
As of June, the company’s current and total liabilities exceeded its current and total assets by RM617,645 and RM40,481, respectively.
This resulted in questions of whether the company could stay afloat.
“Our opinion is not modified with respect to this matter,” the external auditor said in a note accompanying its report.
An unmodified opinion indicates that the auditor is convinced that a company’s financial accounts are free from material misstatement and comply with accounting standards.
The auditor noted there was worry about the group having the resources to remain a “going concern”, which means there are questions about whether it can continue operating for the foreseeable future.
For the 18-month period ended June 30, AIM’s net loss widened to RM11.07 million from RM4.73mil in the preceding year, even though revenue more than doubled to RM7.66mil from RM3.53mil.
The previous year’s numbers were based on a 12-month period ended Dec 31.
In a filing with the stock exchange, AIM said it would be implementing measures to ensure its financial continuity, including conducting continuous reviews and rationalisation of operating expenses to to improve cost efficiency and preserve liquidity.
“We will also evaluate and execute potential capital restructuring or reduction exercises aimed at improving capital efficiency and reducing accumulated losses,” it said.
Additionally, AIM said it would also actively review its existing investments and explore new opportunities that could generate income streams while leveraging its subsidiaries to support its requirements for working capital.
The group maintained that on a consolidated basis, it remained financially sound.
These steps are expected to be executed immediately and the outcome of these proposals will be dynamic and ongoing with no specific deadlines.
At the close of trading yesterday, AIM closed at three sen, giving it a market capitalisation of RM10.24mil.
