Pursuant to Paragraph 9.19(37) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors of Tiger Synergy Berhad (“TSB”) wishes to announce that the Company’s External Auditor, Messrs. Morison AAC PLT  had expressed the following unqualified opinion with material uncertainty related to going concern in the Company’s Audited Financial Statements for the financial year ended 31 December 2019.

Extract of the Auditor’s Report:

Opinion

We have audited the financial statements of TIGER SYNERGY BERHAD, which comprise the statements of financial position as at 31 December 2019 of the Group and of the Company, and the statements of profit or loss and other comprehensive income, statements of changes in equity and statements of cash flows of the Group and of the Company for the financial period then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 18 to 108.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Group and of the Company as at 31 December 2019, and of their financial performance and their cash flows for the financial period then ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 2016 in Malaysia.

Basis for Opinion

We conducted our audit in accordance with approved standards on 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.

Material Uncertainty Related to Going Concern

We draw attention to Note 2.1 to the financial statements, the financial statements of the Group and of the Company have been prepared on a going concern basis notwithstanding that:

a) the Group and the Company incurred a net loss of RM9,303,815 and RM3,773,977 respectively for the financial period ended 31 December 2019;

b) the Group and the Company reported a negative operating cash flows amounted RM78,713,270 and RM80,114,061 for the financial period ended 31 December 2019; and

c) the subsidiary companies delayed the payment of its borrowing obligations during the financial period as disclosed in Note 15 to the financial statements. As at the date of the report, the subsidiary companies have repaid its delayed borrowings instalment obligations and the lender had not issued any demand letters against the subsidiary companies nor have the lenders called upon the loan to be fully repaid.

These conditions indicate the existence of material uncertainties that may cast significant doubt on the Group’s and the Company’s ability to continue as going concerns. Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the Group and of the Company for the current year. We have determined that there are no key audit matters to communicate in our report on the financial statements of the Company. These matters were addressed in the context of our audit of the financial statements of the Group and of the Company as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Steps taken or proposed to be taken to address those key matters that relate to the material uncertainty to going concern as mentioned in the Auditor’s Report and timeline.

In relation to the above, the Board wishes to advise that the independent Auditors have expressed an unqualified opinion on the Financial Statements and that their opinion is not modified in respect of the statement on that matter. The Group are taking the following measures to mitigate the existence of material uncertainty on going concern and its obligations falling within the next 12 months which, include amongst others:

1. The Board also strongly believes that the Group’s business is still relevant but it requires a strategic plan to overcome these challenges. To address the going concern issues as mentioned in the audit report, the Board and the Management have identified that the Group must increase its revenue, manage operational cost effectively, strengthen its cash-flow through higher collections and disposing some of its properties to ensure business is sustainable.

2. The Group intends to launch new projects in this current financial year and have plans for future projects in order for the Group to sustain its growth.

3. The Group is in the process of implementing a Proposed Rights Issue with Warrants and Proposed Private Placement of 30% of the Enlarged Issued Shares of Tiger

Timeline for steps referred above.

This announcement is dated 4 June 2020.