KUALA LUMPUR: Pharmaniaga Bhd's independent auditor has issued a material uncertainty that may cast significant doubt on the group's ability to continue as a going concern in respect of the group's financial statements for the financial year ended Dec 31, 2023 (FY2023).

In its report on March 29, 2024, the independent auditor, Messrs PricewaterhouseCoopers PLT, indicated that the group and company incurred net losses of RM78.7 million and RM63.3 million, respectively, in FY2023.

As at Dec 31, 2023, the group and company's current liabilities exceeded their current assets by RM895.0 million and RM439.0 million, respectively, and recorded a capital deficiency of RM274.1 million.

As stated in Note 2 in the financial statements, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the group and company's ability to continue as a going concern.

"Our opinion is not modified in respect of this matter," the auditor noted.

Meanwhile, Pharmaniaga in a filing with the exchange said that Bursa Malaysia Securities Bhd (Bursa Securities) vide its letter dated June 23, 2023, had resolved to approve the listing of and quotation for up to 131.02 million new placement shares to be issued under its proposed private placement. The private placement had been completed on July 24, 2023.

Additionally, an application relating to the revised proposed rights issue with warrants, revised proposed private placement and proposed capital reduction, which is part of Pharmaniaga's proposed regularisation plan, was announced on Feb 19, 2024, and submitted to Bursa Securities for approval on Feb 23, 2024.

"Upon approval of the proposed regularisation plan, the implementation is tentatively scheduled for the fourth quarter of 2024.

"The group expects to resolve the issues related to the material uncertainty upon the implementation of the proposed regularisation plan," Pharmaniaga said.- BERNAMA

https://www.nst.com.my/news/nation/2024/05/1048125/auditor-casts-doubt-pharmaniagas-ability-going-concern