KUCHING: Rimbunan Sawit Bhd’s audited FY2024 financial statements have been flagged with a material uncertainty by its independent auditor, Crowe Malaysia PLT, raising doubts about the group’s ability to continue as a going concern.
Despite issuing an unmodified opinion, the auditor noted that the group’s current liabilities exceeded current assets by RM136.4 million as of December 31, 2024.
Total borrowings stood at RM232.2 million (2023: RM340.1 million), with RM111.7 million (2023: RM189.7 million) due within 12 months.
Trade and non-trade payables came in at RM107.8 million (2023: RM113.6 million), including RM37.9 million owed to related parties.
The going concern issue was attributed to the group’s weakened financial position, largely due to impairments on property, plant, and equipment in recent years.
While Rimbunan Sawit reported higher EBITDA of RM107.3 million (2023: RM100.2 million), the group has embarked on cost optimisation, mechanisation, and replanting initiatives to improve yields and productivity.
Management also addressed an ongoing tax dispute with the Inland Revenue Board (IRB).
Its subsidiary Timrest Sdn Bhd, is challenging notices of assessment and additional assessment totalling RM56.4 million, issued in December 2020 for various assessment years between 2010 and 2017.
The dispute centres on IRB’s view that a 2018 disposal of cultivation rights constituted a trade, and was therefore taxable under income tax laws.
The company remains confident in its legal position and said, with a positive industry outlook, existing credit lines, and support from related parties, it expects to meet its FY2025 obligations.
The financial statements were prepared on a going concern basis.
