AUDIT REPORT - MODIFIED OPINION / MATERIAL UNCERTAINTY RELATED TO GOING CONCERN : MATERIAL UNCERTAINTY RELATED TO GOING CONCERN
KONSORTIUM TRANSNASIONAL BERHAD |
Type | Announcement | |||||||||
Subject | AUDIT REPORT - MODIFIED OPINION / MATERIAL UNCERTAINTY RELATED TO GOING CONCERN MATERIAL UNCERTAINTY RELATED TO GOING CONCERN |
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Description | Emphasis of a matter related to going concern by the External Auditors on the financial statements for the financial year ended 31 December 2019 |
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Pursuant to paragraph 9.19(37) of Bursa Malaysia Securities Berhad's Main Listing Requirements, the Board of Directors of Konsortium Transnasional Berhad ("the Company") wishes to announce that the Company's independent auditors, Messrs. Al Jafree Salihin Kuzaimi PLT ("Auditors") has included an emphasis of a matter to draw attention to the material uncertainty related to going cocern in its Auditors' report dated 10 July 2020 ("Auditors' Report") for the financial statements of the Group for the financial year ended 31 December 2019 ("Financial Statement"). 1. Material uncertainty disclosed in the Auditors' Report The material uncertainty disclosed is as follows: "We draw attention to Note 2.1 to the financial statements which indicates that for the year ended 31 December 2019, the Group's current liabilities exceeded its current assets by RM70,333,000. These conditions indicate along with other matters as set forth in Note 2.1 to the financial statements the existance of a material uncertainty which may cast significant doubt about the ability of the Group and the Company to continue as going concern. The ability of the Group and the Company to continue as going concern are dependent upon the Group obtaining the support from the Group's penultimate holding company, obtaining support from the Land Public Transport Agency ("APAD") to be disbursed to the private stage bus operators including the Group, the ability of the Group and the Company to generate adequate positive cash flows and future profits from its ongoing reorganisation of its operations and obtaining the continuing support of creditors and lenders. On 14 April 2020 ("First Announcement"), the Company announced that it was classified as an affected listed issuer pursuant to Paragraph 2.1(e) of the Practice Note 17 ("PN 17") under the Main Market Listing Requirements ("MMLR") of Bursa Malaysia Securities. The Company is required to submit a proposed regularisation plan for the Group and the Company ("the Regularisation Plan") to the relevant authorities and to implement the Regularisation Plan within the stipulated timeframe. On 1 July 2020, the Company submitted a monthly announcement in regard to the First Announcement as the Company had yet to finalise the Regularisation Plan for submission to the relevant authorities for approval in which it is being due in 21 months. As at the date of this report, as the Company is currently in the midst of formalising the Regularisation Plan, we are unable to determine whether the Regularisation Plan will be approved by the relevant authorities and whether it will be successfully implemented for the Group and the Company to achieve sustainable and viable operations. The financial statements of the Group and the Company do not include any adjustment relating to the amount and classification of assets and liabilities that might be necessary should the going concern basis of preparation of the Group's and the Company's financial statements be inappropriate. Our opinion is not modified in respect of this matter." The following are the Key Audit Matters as reported in the Auditors' Report:
In relation to the above, the Board wishes to advise on the followings: a) That the Auditors have expressed an unqualified opinion on the financial statements for the year ended 31 December 2019 and that their opinion is not modified in respect of the financial statements on the matter. b) The Group has continued the process of addressing the net current liabilites by negotiating with the creditors for extension/converting debts into few years repayment period of the existing short term debts until completion of the Group's turnaround exercise. c) The Group has two separate agreements with APAD to provide bus services under the MYBUS and ISBSF programs. The revenue and financial supports,respectively, from both programs are significant and enable the Group to continue servicing its current financial commitments. d) The Group has continued to receive the support from the Group's penultimate holding company. e) The Group will continue to rightsizing its operations especially on the express bus services due to the difficult market conditions.
This announcement is dated 14 July 2020. |
Announcement Info
Company Name | KONSORTIUM TRANSNASIONAL BERHAD |
Stock Name | KTB |
Date Announced | 14 Jul 2020 |
Category | General Announcement for PLC |
Reference Number | GA1-13072020-00010 |