KUALA LUMPUR (May 7): The auditors of Eden Inc Bhd have indicated the existence of significant material uncertainties during the course of their audit of the financial statements ended Dec 31, 2017(FY17), which may cast significant doubt on the group’s ability to continue as a going concern.

In the audit report filed with Bursa Malaysia today, it was highlighted that Eden Inc had reported a loss after tax of RM18.56 million for FY17, and the current liabilities of the group had exceeded its current assets by RM62.76 million.

In addition to that the group had reported operating cash outflows of RM10.99 million.

The auditors said that the ability of group to continue as going concern are dependent on the continued support of its lenders and creditors, the timely and successful re-commissioning of the remaining components of its two power plants as well as the sustainability and profitability of the power plants in the future, and the timely collection of the amount due from its holding company Zil Enterprise Sdn Bhd.

Equally important is the timely completion of its proposed issuance of redeemable convertible notes and completion of the its planned land disposals.

In February, Eden had been slapped with a wind-up petition by the government of Malaysia for allegedly owing the Inland Revenue Board of Malaysia about RM3.2 million.

The company paid in full to the IRB last month.

Eden shares closed unchanged at 14 sen today, for a market capitalisation of RM43.59 million.