Lahore April 7 2022: Auditors raised concern about Agritech limited (AGL) ability to operate as going concern as per company filling to the exchange.
Auditor report states as “Notwithstanding the matter discussed in Basis for the Qualifed Opinion section, the Company, during the year ended 31 December 2021, has incurred loss before tax amounting to Rs. 3,017 million and, as of that date, its current liabilities exceeded its current assets by Rs. 44,662 million, and its accumulated losses stood at Rs. 23,613 million. These conditions, along with other matters as set forth in note 2.2 to the financial statements, indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. Our opinion is not qualifed in respect of this matter.”
In auditor's report for the period, auditors raised following concern which states as " the management has assessed the recoverability of deferred tax assets on tax losses and tested the impairment of goodwill based on five years business plan approved by the Board of Directors and asserts that no impairment is required in these financial statements. However, we are unable to obtain suffcient appropriate audit evidence with respect to key assumption used in the business plan i.e. operational days based on the availability of natural gas and cost of raw material based on gas rates since approval from Government of Pakistan for supply of gas to the Company at subsidized rates is available only till 31 March, 2022. Management is, however, confident that supply of gas will be available on long term basis. Consequently, we were unable to determine whether any adjustment in respect of impairment was necessary for goodwill amounting to Rs. 2,567 million and deferred tax asset amounting to Rs. 6,419 million recognized on tax losses of Rs. 22,135 million in these financial statements.”