Auditor issues qualified opinion for KSB

PETALING JAYA: Khee San Bhd (KSB) has been issued a qualified opinion with material uncertainty by its auditors Kreston John & Gan in relation to a going concern for the group’s financial year ended June 30.

With accumulated losses of RM202.2mil for the group and RM122.1mil for the company and current liabilities exceeding assets by RM121.5mil and RM13.2mil, respectively, challenges continue to linger for KSB.

The group, flagged under Bursa Malaysia’s Practice Note 17 (PN17) since November 2021, submitted a regularisation plan in July 2023, that was approved in August 2024, with a six-month extension to February 2026 to implement it.

While KSB believes the plan, once executed, will generate sufficient cash flows, auditors are unable to verify this due to implementation delays.

Key audit matters include revenue recognition and property valuation, with ongoing efforts to address liquidity. Barring unforeseen issues, KSB aims to resolve this uncertainty by next year.