Thursday 22 Feb 2024
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KUALA LUMPUR (April 25): Rimbunan Sawit Bhd’s auditor Messrs Crowe Malaysia PLT has raised a material uncertainty related to the going concern of the Main Market-listed plantation group in respect of the financial statement for the fiscal year ended Dec 31, 2022 (FY2022).

Nonetheless, Crowe Malaysia expressed an unmodified audit opinion, which means the auditor is satisfied that Rimbunan Sawit’s financial statements provide a true and fair view of the group’s financial position, performance and cash flow for FY2022.

The going concern's uncertainty in FY2022 was due to Rimbunan Sawit’s current liabilities exceeding current assets by RM225.4 million, coupled with a net loss of RM5.8 million last year.

These financial conditions coupled with a tax dispute with the Inland Revenue Board, Malaysia indicate that a material uncertainty exists that may cast “significant doubt” on the group’s ability to continue as a going concern, said Crowe Malaysia.

Despite the loss suffered, Crowe Malaysia pointed out that Rimbunan Sawit still recorded earnings before interest, tax, depreciation and amortisation (Ebitda) of RM84.8 million in FY2022, up from RM82.9 million in FY2021.

“As at the end of the reporting period, the group has available approved unutilised credit facilities of RM86.3 million, to meet the shortfall in working capital requirements, if any,” said the auditor.

Shares of Rimbunan Sawit closed half sen or 3.2% lower at 15 sen on Tuesday (April 25), giving it a market capitalisation of RM306.26 million.

Edited ByLiew Jia Teng
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