Refer to the Company’s First Announcements dated 30 April 2023, monthly announcement dated 30 May 2023, 30 June 2023, 31 July 2023, 28 August 2023 and 29 September 2023 made by the Company in relation to the classification of the Company as an affected listed issuer under PN17. 

Unless otherwise defined, the definitions set out in the First Announcement shall apply therein. 

Pursuant to paragraph 4.1 of PN17 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors of the Company wishes to announce that the Company is in the midst of formulating a regularisation plan to address its financial condition (“Regularisation Plan”). 

The Group wishes to highlight that in relation to disclaimer of opinion disclosed in the Independent Auditors’ Report for FYE 31 December 2022, the Group has taken necessary steps as stated below:-

1.       Opening Balances

The Group has reconciled the opening intercompany balances between certain receivables and payables which will be eliminated at Group level. Currently the reconciliation is being finalised with the auditors.

2. Going Concern

i.       Trade receivables

The efforts towards the recovery of the awarded sum of RM241.76 million is still ongoing. The Group is closely monitoring and following up with the solicitors in Abu Dhabi, United Arab Emirates and moving forward to recover the awarded sum. 

ii.     Borrowings

The Group has received the approval for the debt restructuring on 2 October 2023 from the bank’s representative in Dubai, United Arab Emirates. Currently the Group is waiting for the restructuring agreement to be executed.  

3. Balances Subject to Verification

The Group has formulated an action plan on resolving these issues and is currently in the process of obtaining confirmation of balances from respective parties to ensure existence, accuracy and completeness of outstanding balances for FYE 31 December 2022. As at to date the Group had verified the following items as follows:-

⦁ Financial Payables of RM106.052 million, 46% has been verified;

⦁ Income of RM28.997 million, 60% has been verified;

⦁ Other Liabilities of RM19.102 million, 88% has been verified;

⦁ Expenses of RM18.351 million, 100% has been verified;

⦁ Other Assets of RM15.647 million, 95% has been verified; and

⦁ Receivables of RM12.493 million, 80% has been verified.

The Group is working together with the auditor on finalising these items.    

There was no material event subsequent to the end of the current financial period ended 30 June 2023.

The Company has approximately six (6) months to submit its regularisation plan to the relevant regulatory authorities for approval to implement the same and will make the necessary announcement on the regularisation plan in accordance with the requirements under PN 17. 

This Announcement is dated 31 October 2023.