Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 30): Oil and gas service provider Alam Maritim Resources Bhd (AMRB) has triggered the prescribed criteria of Practice Note 17 (PN17) after auditors highlighted a material uncertainty related to its going concern in the group’s latest audited financial statements.

However, AMRB said it will not be classified as a PN17 in line with relief measures implemented by Bursa Malaysia, under which affected groups will be accorded
relief from complying with the PN17 obligations for a period of 18 months.

Elaborating on the prescribed PN17 criteria triggered, the group said: “Shareholders’ equity of the company on a consolidated basis is 50% or less of share capital
(excluding treasury shares) based on the unaudited second quarter results ended June 30, 2021.”

In a filing on June 14, AMRB’s auditors Al Jafree Salihin Kuzaimi PLT said the group incurred losses for the year ended Dec 31, 2020, of RM119.87 million and its current liabilities exceeded its current assets by RM20.25 million as at Dec 31 2020.

“These conditions indicate, along with other matters set forth in Note 2.1 to the financial statements, the existence of material uncertainty which may cause significant doubt about the ability of the group to continue as a going concern.  

“However, the group is currently undergoing a restructuring scheme that is targeted to be completed in 2022. Our opinion is not modified in respect of this matter,” it
added.

Upon expiry of the 18 months from the PN17 relief announcement, AMRB must reassess its condition and announce whether it continues to trigger any of the criteria in PN17 of the Main Market Listing rules.

“Notwithstanding this, the company is in the midst of formulating a restructuring scheme of its borrowings and expects the financial position and liquidity of the company to improve within the next 18 months, and the going concern issue of the group will be addressed accordingly,” AMRB added.

AMRB’s share price closed half a sen or 7.69% lower at six sen today, valuing the group at RM79.89 million.

Edited ByS Kanagaraju
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