KFM’s financial statements qualified

PETALING JAYA: Kuantan Flour Mill Bhd’s (KFM) financial statements ended Sept 30, 2016 have been qualified by its external auditors Messrs McMillan Woods Thomas.

At the group level, KFM incurred a net loss of RM12.09 million for the financial year ended Sept 30, 2016, with net current liabilities standing at RM17.96 million. It registered negative shareholders’ funds of RM10.81 million.

The auditor said KFM has yet to finalise any business plan to revive the company since it slipped into Practice Note 17 (PN17) status on Dec 28, 2015.

“This situation indicates the existence of a material uncertainty that may cast significant doubt on the group and the company’s ability to continue as a going concern and therefore the group and the company may be unable to realise their assets and discharge their liabilities in the normal course of business,” it explained.

KFM is still awaiting Bursa Malaysia’s decision on its request for an extension of time to submit its regularisation plan. The last deadline was Dec 31, 2016.

Late last year, KFM was thrown into the limelight by Felcra Bhd’s interest in the company but it was retracted within 24 hours.