Friday 29 Mar 2024
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KUALA LUMPUR (Nov 12): Prestariang Bhd's independent auditor Crowe Malaysia PLT has highlighted material uncertainty on the IT software distributor's ability to continue as a going concern, after taking into account Prestariang's negative operating cash flow and loss after taxation for the financial period ended June 30, 2019.   

In a Bursa Malaysia filing today, Prestariang said Crowe Malaysia has included a statement of material uncertainty in its independent auditors' report dated Sept 19, 2019 on Prestariang.

Prestariang said Crowe Malaysia also highlighted the termination of Prestariang's Sistem Kawalan Imigresen Nasional (SKIN) project and Prestariang's acceptance of advances from a director and a former director of the company for working capital purposes, as reasons contributing to the material uncertainty.

Crowe Malaysia said: "These indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern and whether the group and the company have sufficient cash flows to meet their obligations, as and when they fall due."

"In the preparation of the group's financial statements, the management has made an assessment on its working capital sufficiency and with the support of a cash flow projection. The management has concluded that the group and the company shall have sufficient working capital to finance their operations and to meet their financial obligations, as and when they fall due.

"As at the end of the reporting period and as at the date these financial statements were authorised for issue, the directors believe that there is no material uncertainty over the ability of the group and the company to continue on a going concern basis. Accordingly, the financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or to the amounts and classification of liabilities that may be necessary, if the group and the company are unable to continue as a going concern," Crowe Malaysia said.

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