Auditors issue disclaimers of opinion on Pacific Star Devt, Capital World FY19 results

Singapore

THE auditors of both Capital World and Pacific Star Development have flagged uncertainties in their ability to continue as going concerns in relation to their financial statements for the year ended June 30, 2019.

Both companies, which are Catalist-listed property firms with developments in Johor, Malaysia, were audited by Ernst & Young.

The auditing firm, in separate disclaimers, said the firms have a high leverage and are facing headwinds in a challenging Johor property market, Capital World and Pacific Star disclosed in separate announcements before the market opened on Monday.

Both companies also said they can continue as going concerns, regarding the disclaimers of opinion.

As at June 30, Capital World's loans and borrowings amounted to RM44.6 million (S$14.6 million), all of which were current liabilities, and exceeded its cash and cash equivalents of RM2.4 million. The auditor noted the group's working capital comprised mainly inventory prop…