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Parkson auditor raises going concern doubt; company's parent pledges financial support
PARKSON Retail Asia's independent auditor has raised a "material uncertainty" about the department store operator's ability to remain a going concern, the company announced on Friday after the market closed.
The company, however, said that its Malaysian parent has given an undertaking to provide financial support for 12 months from the date of the board's approval of the audited financial statements.
The auditor, Ernst & Young, highlighted that Parkson Retail incurred a net loss of S$61.2 million for the year ended June 30, 2017, and that it had a net current liability position of S$55.5 million.
"The ability of the group to continue as a going concern is dependent on the group generating sufficient cash flows from its operations and the continued financial support from the ultimate holding company, Parkson Holdings Bhd," the auditor wrote in its report.