External auditors confirm existence of doubt on Seacera’s ability to continue as a going concern

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KUALA LUMPUR (Nov 8): Seacera Group Bhd’s external auditors said Seacera’s accompanying financial statements give a true and fair view of the financial position of the Company as at June 30, 2019, and of its financial performance and its cash flows for the period then ended in accordance with Malaysian Financial Reporting Standards.

In an independent auditor’s report lodged with Bursa Malaysia Securities today, Seacera’s external auditors Messrs. Afrizan Tarmili Khairul Azhar said they conducted their audit in accordance with approved standards of auditing in Malaysia, and International Standards on Auditing.

“Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report.

“We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion,” the auditors said.

In drawing particular attention to Seacera’s loss of RM191.78 million for the group and RM153.39 million for the company respectively for the financial period ended June 30, 2019, the auditors said the group’s and company’s current liabilities exceeded its current assets by RM101.80 million and RM37.75 million respectively.

The auditor said Seacera had on April 18, 2019 announced it had triggered the prescribed criteria under Paragraph 2.1(f) of Practice Note 17 (PN17) as a default in the payment of loans or credit facilities of a company and its major subsidiary companies, and the company is unable to provide a solvency declaration to the Exchange.

“These conditions, along with other matters as set forth in Note 2(a), indicate the existence of a material uncertainty that may cast significant doubt on the Group’s and the Company’s ability to continue as a going concern.

“Our opinion is not modified in respect of this matter,” the auditors said.