SODELPA in balance sheet insolvency

The latest audited accounts of SODELPA has highlighted balance sheet insolvency.

According to the audit report for the year ended 31st December 2022 signed off by I.Naiveli and Co, the auditors say there is uncertainty with SODELPA generating adequate cash flows to meet all its commitments and obligations as and when they fall due.

The audit report says SODELPA incurred significant payables in the recent months.

During the year ended 31st December 2022, SODELPA incurred liabilities to the amount of $297,431.

The total liabilities exceed total assets resulting in net deficiency in assets of $251,685.

The audit report says the current liabilities exceed the current assets by $312,997.

It says furthermore, the party may require funding to meet its working capital and capital expenditure requirements.

The auditors say the conditions indicate the existence of a material uncertainty that may cast significant doubt about the party's ability to continue as a going concern.

They say the appropriateness of the going concern assumption on which the financial statements are prepared is critically dependent on the SODELPA members’ support and its ability to secure adequate financial backing without violating the regulations that govern the party.