KUALA LUMPUR (June 10): Wintoni Group Bhd’s external auditor has expressed a qualified opinion with material uncertainty with regards to the mobile Internet platform services group’s going concern.

In a report filed with Bursa Malaysia today by Wintoni, CAS Malaysia PLT said Wintoni’s financial statement for the year ending Dec 31, 2018 was made on the assumption that the group will continue as a going concern.

CAS Malaysia said the application of the going concern basis is based on the assumption that Wintoni will be able to realise its assets and settle its liabilities in the normal course of business.

It noted that as at Dec 31, 2018, Wintoni’s current liabilities exceeded the group and company’s current assets by RM7.38 million and RM2.65 million respectively. The group and the company also recorded a deficit in shareholders’ fund of RM7.38 million and RM2.65 million respectively, the auditor said.

Therefore, it said the going concern assumption was highly dependent on the formalisation and successful implementation of the regularisation plan of the company to restore its financial position and achieve sustainable and viable operations.

“In the event that the formalisation and implementation of the regularisation plan does not materialise or is not approved, the application of the going concern concept may be inappropriate and adjustments may be required to, inter alia, write down assets to their immediate realisable value, reclassify all long term assets and liabilities as current, and provide for further costs which may arise,” CAS Malaysia said.

Therefore, it said there are material uncertainties that may cast significant doubt on the ability of the group and of the company to continue as a going concern.

The auditor added there were no steps taken by the current management and directors of Wintoni, as the group was under liquidation during the financial year 2018.

In October 2017, Wintoni had announced it had been wound up by order of the High Court upon petition by a creditor.