Resources Prima AGM deadline extended, independent auditors issue qualified opinion

CATALIST-LISTED Resources Prima Group said on Tuesday night that the Accounting and Corporate Regulatory Authority of Singapore has approved its application for an extension of time to hold its annual general meeting (AGM) for the financial year ended Dec 31, 2018.

The company now has to hold its AGM by June 29, 2019. It has already gained the Singapore Exchange's approval for the extension.

Resources Prima said it will update shareholders on the date and venue of the AGM in due course.

In a separate Tuesday night announcement, the Indonesian coal miner said that its independent auditor, Baker Tilly TFW LLP, had issued a qualified opinion on its FY2018 audited financial statements, and indicated material uncertainties that may cast doubt on its ability to continue as a going concern.

Resources Prima advised shareholders to read its announcement in conjunction with the independent auditor's report and its annual report, to be dispatched in due course.

The independent auditor's report said the basis for issuing a qualified opinion was related to the loss from discontinued operations of PT Rinjani Kartanegara, its main operating subsidiary that was declared bankrupt on Oct 9, 2017.

Resources Prima lost control over Rinjani on Aug 24, 2017, and could not obtain Rinjani's audited financial statements for the period from Jan 1 till then. Baker Tilly said it consequently could not determine if adjustments were necessary regarding a US$14.79 million loss for discontinued operations, the related basic and diluted loss per share attributable to equity holders, and the effect on Rinjani's cash flow statement.

Trading in the shares of the company has been suspended since June 28, 2017, as the board was of the view at the time that the firm could not continue as a going concern.