KUALA LUMPUR (Nov 10): The independent auditor of Daya Materials Bhd has expressed a disclaimer of opinion in the group’s audited financial statements for the 18-month period ended June 30, 2020.
Messrs Baker Tilly Monteiro Heng PLT said it could not obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements.
The auditor said a number of factors indicated that a material uncertainty existed that may cast significant doubt on Daya Materials’ ability to continue as a going concern.
One of the factors is that the group and the company incurred net losses of RM59.41 million and RM36.36 million respectively.
Also, as of June 30, the group’s and the company’s current liabilities exceeded their current assets by RM244.58 million and RM235.68 million respectively, and they recorded capital deficiencies of RM199.76 million and RM214.88 million respectively.
The auditor also noted that Daya Materials is an affected listed issuer under Practice Note 17 following a default in payment.
The group is in the midst of formulating and implementing a debt restructuring scheme to regularise its PN17 status, which is due for submission on Feb 27, 2021.
The auditor took note of the uncertainties involving the timing and successful formulation and implementation of Daya Materials’ regularisation plan, including sufficiency of funding supporting and possible monetisation of assets of the group and of the company.
As such, it said it was unable to obtain sufficient appropriate audit evidence to determine whether the management’s use of the going concern basis in the preparation of the financial statements of the group and of the company was appropriate.
Baker Tilly also said it was unable to obtain sufficient appropriate audit evidence to support Daya Materials’ trade and other payables, which totalled RM10.5 million as at June 30, 2020 and RM11.68 million as at Jan 1, 2019.
Daya Materials shares were unchanged at one sen in afternoon trading, valuing the group at RM20.43 million.