G Neptune’s external auditors issues statement over material uncertainty

22 Oct 2019 / 17:16 H.

PETALING JAYA: G Neptune Bhd’s external auditors Messrs Moore Stephens Associates PLT has issued a statement of “material uncertainty related to going concern” in respect of its financial statements ended June 30, 2019.

G Neptune’s outstanding loan payables and accrued interest amounted to RM1.09 million and RM743,710 respectively. It also provided RM385,912 for crystallisation of corporate guarantee granted to its subsidiary.

“We were unable to obtain sufficient appropriate audit evidence to confirm the accuracy of the carrying amount stated or whether any further liabilities are required to be provided in the financial statements in relation to these loan payables as we were unable to obtain external confirmations from the lenders,” said the auditor.

Furthermore, it was unable to obtain sufficient appropriate audit evidence to confirm the accuracy of the remaining payable balances of the group’s subsidiary amounting to RM238,983.

For the financial year ended June 30, 2019, the group reported a net loss of RM1.02 million with a deficit in shareholders equity of RM4.13 million.

The group’s current liabilities also exceeded current assets by RM4.13 million.

G Neptune has been a Guidance Note 3 (GN3) company since Nov 30, 2017. It is still evaluating its options to formulate a regularisation plan to address the GN3 status.

It had made two applications to Bursa Securities for extension of time until November 30, 2019 for it to submit the proposed regularisation plan.

As the group has ceased all business operations, the auditor said its outlook is dependent on the outcome of its rationalisation exercise.

“The board is committed to structuring a strong rationalisation plan that will bring the group back to a stronger foundation in order to exit its GN3 status.”

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