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IEV auditors flag 'material uncertainty' concerns
IEV Holdings - which offers offshore engineering services - on Wednesday said its independent auditors have flagged "material uncertainty" over the business based on its financial statement for the year ended Dec 31, 2017.
Deloitte & Touche noted that the loss-making group had a net operating cash outflow of RM11.1 million (S$3.76 million) for the 12 months ended Dec 31, 2017. It further pointed out that as at Dec 31, 2017, the group's current liabilities exceeded their current assets by RM6.3 million.
The group, which is ending its activities in the exploration and production and renewable energy sectors, has projected a net cash inflow for the year ending Dec 31, 2018 based on current ongoing projects, the number of awarded new projects, and current ongoing tender projects, Deloitte said.
"In the event that the group is unable to secure the ongoing tender projects, the group may have insufficient cash to fulfil its obligations. These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the group's and the company's ability to continue as going concerns."