Maxland Berhad has shared its mitigation plans in view of the Audit Report over Material Uncertainty related to Going Concerns the board said it is taking the mitigation steps to address the report for the audited financial statements for the financial period ended 30 June 2024.
The report indicates the group incurred a gross loss and net loss of RM31,513,480 and RM61,177,437 during the financial period and its current liabilities exceeded its current assets by RM69,824,237. It is noted that a material uncertainty exists that may cast significant doubt on the group's ability to continue as a going concern.
The group said the financial statements indicate the net current liabilities position is mainly due to 2 material obligations that amounted to approximately RM80 million to third-party creditors.
Maxland board said the amount owing to a creditor by its wholly owned subsidiary, amounted to RM59 million and represented unsecured trade advances given to the subsidiary since 2017. The management said it has been in the midst of a negotiation process with the creditor actively to reach an amicable solution and is confident that the creditor will not enforce the repayment of the amounts within the next 12 months.
The board added that included in the current liabilities is a provision of amounts for replanting costs, interest, arbitrator's fees, and representation costs arising from the Final Award in an arbitration between wholly owned subsidiary, GSR Pte Ltd, and Transkripsi Pintar Sdn. Bhd., consolidated with an arbitration involving Sinora Sdn. Bhd. and Anika Desiran Sdn. Bhd., totaling RM20,556,812. This Final Award it said is currently in the process of being appealed in the High Court.
Given the above ongoing processes, the management said it had taken to manage the above obligations with the relevant parties and is confident that the Group's ability to continue as a going concern is preserved.