NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 1. CORPORATE INFORMATION Tropicana Corporation Berhad (“the Company”) is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Market of Bursa Malaysia Securities Berhad. The registered office and principal place of business of the Company is located at Unit 1301, Level 13, Tropicana Gardens Office Tower, No. 2A, Persiaran Surian, Tropicana Indah, 47810 Petaling Jaya, Selangor Darul Ehsan. The principal activities of the Company are investment holding and provision of management services. The principal activities of the subsidiaries, associate and joint ventures are disclosed in Notes 18, 19 and 20 respectively. There have been no significant changes in the nature of these principal activities during the financial year. T he financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors on 26 April 2023. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 2.1 Basis of preparation T he financial statements of the Group and of the Company have been prepared in accordance with the Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards (“IFRS”) and the requirements of the Companies Act 2016 in Malaysia. The financial statements have been prepared on the historical cost basis except as disclosed in the accounting policies below. T he financial statements are presented in Ringgit Malaysia (“RM”) and all values are rounded to the nearest thousand (RM’000) except when otherwise indicated. T he Group and the Company recorded loss before of tax of RM472,360,000 (2021: RM35,982,000) and RM31,738,000 (2021: RM41,369,000) respectively during the financial year ended 31 December 2022, as well as negative net operating cash flows of RM24,674,000 (2021: RM533,226,000) and RM121,758,000 (2021: RM491,977,000) respectively. These conditions may affect the ability of the Group and of the Company to meet its financial obligations as and when they fall due. In particular, as disclosed in Note 32, the Group and the Company have obligations to repay the Tranche 2 of Sukuk Wakalah of RM465.5 million in June 2023 and Tranche 4 of Sukuk Wakalah of RM179 million in October 2023. In addition, term loans amounted to RM477.2 million will be due for repayment throughout 2023. I n response to the aforementioned, the Group and the Company have executed several actions to address the cash flow requirements. The Directors have prepared a cash flow forecast as part of the assessment on whether the Group and the Company will be able to meet their loan repayment obligations for the next twelve months after the reporting date and to continue as a going concern. Critical to the going concern assessment are the Directors’ expectations to achieve the following: - E stimated net cash inflow forecasted to be generated from its operating activities and disposal of identified assets during the financial year ending 2023; - Additional term loans from banks amounted to RM300 million; - Additional project financing for certain development projects as forecasted; - Conversion of cash injection from a major shareholder into equity and/or long term debt; and - U tilisation of available undrawn credit facilities of RM451 million and/or the issuance of the additional tranches under the Perpetual Sukuk Programme. B ased on the cash flow forecast which incorporates the actions taken to date, the Directors concluded that there is no material uncertainty on the Group’s and the Company’s ability to continue as going concerns. The Directors have accordingly prepared the financial statements of the Group and the Company on a going concern basis. 168 ANNUAL REPORT 2022
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