KUALA LUMPUR: Sarawak Cable Bhd (SCB) said its external auditor Baker Tilly Monteiro PLT has issued a disclaimer opinion on the group's financial statements for the year ended May 31, 2023 (FY2023).

The company's FY2023 financial position and the group's PN17 status indicate that material uncertainties exist that may cast significant doubt on the company's ability to continue as going concern, according to the auditor in a statement.

"During the financial year ended 31 May 2023, the company incurred net loss of RM98.7 million and RM61.3 million respectively. "As of that date, the company's current liabilities exceeded their current assets by RM237.9 million and RM401.5 million respectively and recorded a capital deficiency of RM63.9 million and RM104.5 million respectively," it noted.

Nevertheless, the auditor said the directors continued to prepare the financial statements on a going concern basis.

Additionally, SCB is also in the process of formulating a plan (proposed regularisation plan) to regularise its financial conditions in tandem with the proposed scheme of arrangement.

The auditor has noted that the directors of the company have not finalised the whole proposed regularisation plan and it is subject to the company's shareholders' and relevant regulatory approvals.

"We have not been provided with the cash flow forecast incorporating the effects arising from the proposed regularisation plan to assess the ability of the company to continue as going concerns.

"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.

https://www.nst.com.my/business/corporate/2023/10/968775/sarawak-cables-external-auditor-issues-disclaimer-opinion-latest