This article first appeared in The Edge Financial Daily on February 6, 2018

KUALA LUMPUR: Kuantan Flour Mills Bhd’s (KFM) external auditors McMillan Woods Thomas has issued a qualified opinion on the company’s audited financial statements for the year ended Sept 30, 2017 (FY17), amid uncertainty over its proposed regularisation plan.

“The company had submitted its proposed regularisation plan (PRP) to Bursa Securities for approval on Sept 29, 2017.

“Till to date the PRP has yet to be approved by Bursa and this situation indicates the existence of a material uncertainty that may cast significant doubt on the group and the company’s ability to continue as a going concern and, therefore, the group and the company may be unable to realise their assets and discharge their liabilities in the normal course of business,” said the auditors in a statement yesterday.

The auditors noted that the group incurred a net loss of RM12.26 million in FY17, with net liabilities of RM28.98 million and negative shareholders’ funds of RM23.07 million.

KFM shares fell 0.5 sen or 3.45% to close at 14 sen yesterday, giving it a market capitalisation of RM9.55 million.