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Auditors flag 'going concern' risk for EMS Energy
THE external auditors for EMS Energy have cast doubt on the marine and offshore service provider's ability to continue as a "going concern".
The group incurred a net loss of S$10.2 million in the 2015 financial year, its auditors BDO LLP noted. Its current liabilities also exceed its current assets by S$21.8 million.
"These conditions indicate the existence of material uncertainty that may cast doubt about the group's and the company's abilities to continue as going concerns", said the auditors.
The firm's directors differ in their opinion.
Based on their forecast of the group's cash flows until March 31, 2017, they estimate that "adequate liquidity" exists to finance the group's working requirements.
These are based on assumptions including the rescheduling of payment from third parties amounting to S$10.47 million, and the divestment of certain non-core assets if necessary.
The group has also refinanced certain bank borrowings that were due, and is sourcing for additional funding from other banks, the directors added.
This comes less than a year after EMS Energy acquired engineering, procurement and construction management firm Koastal Group for S$150 million in shares and cash.