NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024 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 are 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. The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors on 28 April 2025. 2. MATERIAL ACCOUNTING POLICY INFORMATION 2.1 Basis of preparation The financial statements of the Group and of the Company have been prepared in accordance with the MFRS Accounting Standards, IFRS Accounting Standards 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. The financial statements are presented in Ringgit Malaysia (“RM”) and all values are rounded to the nearest thousand (RM’000) except when otherwise indicated. The Group recorded a loss before tax of RM117,125,000 (2023: RM100,046,000), while the Company recorded a loss before tax of RM7,925,000 (2023: profit before tax of RM62,305,000). Further, as disclosed in Note 32, the Group and the Company have obligations to repay Tranches 2, 3 and 4 of the Sukuk Wakalah amounting to RM123.5 million, RM100 million and RM139 million in June 2025, September 2025 and October 2025 respectively. In addition, term loans amounting to RM435 million and other shortterm borrowings amounting to RM487 million are due for repayment throughout the financial year ending 31 December 2025. These conditions may affect the ability of the Group and of the Company to meet their financial obligations as and when they fall due. In 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: - Estimated net cash inflow forecasted to be generated from its operating activities and disposal of identified assets during the financial year ending 2025; and - Secure additional loans from banks amounted to RM631 million. On top of the above, the directors believe they have the ability to utilise the following financial facilities, if necessary, to meet its financial obligations as and when they fall due: - Issuance of the additional tranches under the Perpetual Sukuk Programme up to RM1.5 billion; and - Issuance of the Sukuk Wakalah Programme 2 facility up to RM1.25 billion. Based 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 concern. The directors have accordingly prepared the financial statements of the Group and of the Company on a going concern basis. ANNUAL REPORT 2024 246
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