Pursuant to Paragraph 9.19(37) of the Bursa’s MMLR, the Board of Directors of AMGB (“the Directors”) wishes to announce the details on the Disclaimer of Opinion in the external auditors’ report for the financial year ended 31 December 2018 (“FYE2018”), and the steps proposed to be taken to address the material uncertainty related to going concern and the timeline involved as follows:
A. DISCLAIMER OF OPINION
The following is an extract of the Auditors’ Report:
Disclaimer of Opinion
We were engaged to audit the financial statements of ASIA MEDIA GROUP BERHAD, which comprise the statements of financial position as at 31 December 2018 of the Group and of the Company, and the statements of comprehensive income, statements of changes in equity and statements of cash flows of the Group and of the Company for the financial year then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 53 to 129.
We do not express an opinion on the accompanying financial statements of the Group and of the Company. Because of the significance of the matters described in the Basis for Disclaimer of Opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.
Basis for Disclaimer of Opinion
Material uncertainty relating to the going concern basis
As disclosed in Note 2.1 to the financial statements, the financial statements of the Group and of the Company have been prepared on the assumption that the Group and the Company will continue as going concern. The application of the going concern basis is based on the assumption that the Group and the Company will be able to realise their assets and settle their liabilities in the normal course of business.
2.1 The Group and the Company incurred a net loss of RM26,554,566/- and RM17,565,828/- respectively for the financial year ended 31 December 2018. As at 31 December 2018, the current liabilities of the Group and of the Company exceeded its current assets by RM1,554,700/- and RM117,907/- respectively. The Group and the Company also recorded a deficit in shareholders’ fund of RM1,554,700/- and RM117,907/- respectively.
2.2 A listed issuer triggers any of the Prescribed Criteria in Paragraph 2.1(a) to (e) of Practice Note 17 is required to comply with the provision of Paragraph 8.04 of Chapter 8. As at date of this report, the Group and the Company reported a deficit in shareholders’ fund and issuance of emphasis of matter on the listed issuers ability to continue as a going concern, where it triggers the Prescribed Criteria in Paragraph 2.1(a) and (e) of Practice Note 17.
2.3 There exists material uncertainty on the outcome of the Group’s legal suits with several Plaintiffs for claims as disclosed in Note 28 to the financial statements.
As disclosed in Note 2.1 to the financial statements, the financial statements of the Group and of the Company have been prepared on the assumption that the Group and the Company will continue as going concerns. The going concern assumption is highly dependent on:
(i) The Group and the Company achieving sustainable and viable operations;
(ii) The Group and the Company generating adequate cash flows for its operating activities.
(iii) The timing and successful formulation and implementation of the Regularisation Plan; and
(iv) The outcome of the legal suits adjudged in favour of the Group.
In the event that these are not materialised, the Group and the Company may be unable to realise their assets and discharge their liabilities in the normal course of business. In view of the matters mentioned above, there are material uncertainties that may cast significant doubt on the ability of the Group and of the Company to continue as going concern. Accordingly, we are unable to obtain sufficient appropriate audit evidence to ascertain the appropriateness of the preparation of the financial statements of the Group and of the Company on a going concern basis.
B. STEPS TAKEN OR PROPOSED TO BE TAKEN TO ADDRESS THE MATERIAL UNCERTAINTY RELATED TO GOING CONCERN AND THE TIMELINE INVOLVED
The directors of the Company are of the opinion that the preparation of the financial statements of the Group and the Company on a going concern basis remains appropriate given the following measures will be taken by the Group and the Company to mitigate the existence of material uncertainty related to going concerns and to meet their obligations falling due within the next 12 months, amongst others:
(a) The Group is in the final negotiation stage to sign a new business contract with a potential customer. There will be more similar attempts to revive the business of the Group in the coming months.
(b) The Group is currently actively looking at disposing certain physical assets of the Group to generate additional cash inflow; these assets have been fully impaired in the financial statements of the Group in FYE2018.
(c) The Management is currently in negotiations with the opposing parties in the legal suits to reach at an amicable settlement plan to allow the Group to better manage its cash flow in order to meet its obligations and allow the Group to carry on with its business operations.
(d) The Management will be seeking legal advice to take the next course of legal actions to claim back the advance taken by a former subsidiary of the Group, namely DPO Plantations Sdn Bhd. Amount outstanding as at end of FYE2018 amounted to RM2.3 million and this has been fully impaired in the financial statements of the Group in FYE2018.
(e) The Group has also obtained advances from certain shareholders to defray the ongoing operational expenses.
This amended announcement is dated 31 October 2019.
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发表于 12-3-2019 07:41 AM
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