KUALA LUMPUR (April 14): Konsortium Transnasional Bhd (KTB) said it has been classified as an affected issuer under Practice Note 17 (PN17), after its auditors highlighted a material uncertainty in the company’s ability to continue as a going concern in its audited financial statements for the financial year ended December 31, 2018 (FY18).
Pursuant to PN17 of the listing requirements, the company is required to regularise its condition within 12 months of the date of its first announcement, submit regularisation plans to the Securities Commission Malaysia and Bursa Malaysia and implement the regularisation plan within the timeframe as stipulated by the regulators.
KTB is also required to announce whether the regularisation plan will result in a significant change in the business direction policy of the company, within three months of the first announcement.
If it fails to regularise its condition, the company risks a delisting from the exchange.
“As at the date of this announcement, the company is looking into formulating a plan to regularise its financial condition and the announcement on the same will be made in due course in accordance to the listing requirements,” said KTB in a filing today.
In its audited FY18 financial statements, its auditor Al Jafree Salihin Kuzaimi Plt highlighted that the group’s current liabilities had exceeded its current assets by RM63 million, indicating the existence of a material uncertainty that may cast significant doubt on the ability of the group to continue as a going concern.
“The ability of the group and the company to continue as a going concern is dependent upon the group obtaining the support from the group’s penultimate holding company, obtaining support from the Land Public Transport Agency to be disbursed to the private stage bus operators including the group, the ability of the group and the company to generate adequate positive cash flows and future profits from its ongoing reorganisation of its operations and obtaining the continuing support of creditors and lenders.
“The financial statements of the group and the company do not include any adjustments relating to the amounts and classification of assets and liabilities that might be necessary should the going concern basis of preparation of the group’s and the company’s financial statements be inappropriate,” said the auditor.
KTB’s share price closed unchanged at 5.5 sen, giving the group a market capitalisation of RM22.15 million.
http://www.theedgemarkets.com/article/konsortium-transnasional-classified-pn17-company
