KUALA LUMPUR (May 18): Zelan Bhd’s external auditor Messrs Afrizan Tarmili Khairul Azhar PLT has expressed an unqualified opinion with material uncertainty related to going concern in its audited financial statements for the financial year ended Dec 31, 2021 (FY21).

In a bourse filing on Wednesday (May 18), the engineering and construction group said its auditor drew attention to the company's net loss of RM3.04 million in FY21, noting that the group's and the company’s current liabilities exceeded its current assets by RM186.89 million and RM21.67 million respectively.

"These events or conditions...indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter," it added.

Afrizan Tarmili Khairul Azhar said Zelan's directors believe that there is no reason that the group will not generate sufficient cash from its operations within the next 12 months from the reporting date to repay the existing borrowings, complete the projects in progress and meet working capital.

Zelan shares closed down 0.5 sen or 6.67% at 7 sen on Wednesday, bringing it a market capitalisation of RM59.14 million.