EY flags Parkson Retail Asia's ability to operate
The group's total liabilities exceeded assets by $48.57m.
Singapore-based Parkson Retail Asia's independent auditor Ernst & Young (EY) has flagged the group's ability to continue operating amidst losses it has incurred following movement restrictions and store closures, according to a bourse filing.
The auditor highlighted, without qualifying its opinion, that the group suffered a net loss of $62.59m (S$85m) for the financial year ended June 2020.
At the same time, the group and the company’s current liabilities exceeded its current assets by $86.43m (S$117.37m) and $5.33m (S$7.24m) respectively, and the group’s total liabilities exceeded total assets by $48.57m (S$65.96m).
EY expressed concern that the group may be unable to discharge its liabilities in the normal course of business, if the group is unable to continue in operation existence for the foreseeable future.
This meant that adjustments may have to be made to reflect the situation that assets may need to be realised outside the normal course of business and at amounts which could differ from what are recorded in the balance sheets.
"In addition, the group may have to reclassify certain non-current assets and liabilities as current assets and liabilities, respectively. No such adjustments have been made to these financial statements," the auditor stated.