KUALA LUMPUR (April 30): Cropmate Bhd (KL:CRPMATE) said on Thursday that its external auditors have issued an unmodified audit opinion with a material uncertainty related to going concern for the financial year ended Dec 31, 2025 (FY2025), citing the freezing of certain bank accounts by authorities and the uncertainty over the duration and financial impact of the restrictions.
In a Bursa Malaysia filing, the fertiliser manufacturer said Messrs Kreston John & Gan had highlighted that the restrictions on the affected accounts, imposed in connection with an ongoing investigation by the Malaysian Anti-Corruption Commission (MACC), could cast significant doubt on the group’s ability to continue as a going concern.
“The duration of the restrictions on the affected bank accounts and the resulting impact are presently uncertain. These events and conditions indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern,” the auditors said.
The auditors also identified revenue cut-off and trade receivables as a key audit matter, noting that the group recorded RM22 million in trade receivables as at Dec 31, 2025, representing 16% of total assets.
Cropmate said it is taking steps to address the issue, including appointing solicitors and submitting a representation letter to the MACC to seek the unfreezing of the affected accounts, while continuing to engage with the authorities on the status of the investigation.
"Based on the current information available and discussion with our legal adviser, the directors are of the view the case is expected to be resolved within a reasonable time frame," the company said.
On Monday, Cropmate, which made its debut on the local bourse in December 2024, disclosed that the MACC had frozen several of its bank accounts, as well as those of its subsidiaries, under Section 44(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA) in connection with a money laundering probe.
The group later revealed that about RM12.21 million held in the affected accounts had been frozen, and that it had appointed legal counsel to challenge the move and seek the release of the funds.
Cropmate had said it has access to alternative banking facilities to support its operations and maintained that the issuance of the freeze order is a standard procedure during such investigations, adding that it is not aware of any wrongdoing.
At market close on Thursday, Cropmate’s share price was unchanged at 19 sen, with a market capitalisation of RM140.22 million.