KUALA LUMPUR (July 28): Bintai Kinden Bhd’s external auditor has raised a material uncertainty on the group's ability to continue as a going concern with regards to its business activities during the financial year ended March 31, 2023.

Bintai Kinden incurred a net loss of RM114.51 million at the group level, and RM53.7 million at the company level, for the financial year ended March 31, 2023, noted HLB Ler Lum Chew PLT in its audit report.

As at that date, Bintai’s current liabilities exceeded its current assets by RM77.73 million at group level, and RM2.48 million at company level.

The auditor also cited defaulted loan repayment, loan facilities cancellation, and contract termination by its major customer Tenaga Nasional Bhd (TNB) due to its inability to perform contractual obligation, have cast a significant doubt on the group’s ability.

“These events and conditions indicate material uncertainties that cast significant doubt over the ability of the group and the company as going concerns and therefore may be unable to realise their assets and discharge their liabilities in the normal course of business,” said the auditor.

In response to the auditor's report, Bintai said it will formulate a regularisation plan for submission to Bursa Securities within 12 months from the date of first announcement.

The management also has been working closely with Kolej Teknologi Islam Melaka Bhd and the state government of Melaka to recover the long outstanding debts of the firm, said Bintai in a filing with Bursa Malaysia.

The group is also in negotiations with potential buyers of the concession segment in which the proceeds will be utilised to pare down or fully settle the borrowings with MBSB Bank Bhd, Bintai said.

It is also in the midst of negotiations on restructuring of debts with other banks and following up with TNB to determine the work value of the projects and to finalise all the projects accounts which have been terminated with the group.

Bintai said its legal suit with Axbena Sdn Bhd has been stayed pending the conclusion of the intended arbitration between Axbena and the group.

“The management in the midst of seeking for an amicable solution to minimise losses to Johnson Medical International Sdn Bhd and the group and will continue to pursue and secure new profitable projects to ensure our sustainability,” it added.

Bintai closed unchanged at seven sen on Friday (July 28), valuing the group at RM61.59 million.