This article first appeared in The Edge Financial Daily on November 1, 2018

KUALA LUMPUR: The auditors of Malaysia Pacific Corp Bhd (MPC) have released a disclaimer of opinion on the group’s financial statements for the financial year ended June 30, 2018 as the group’s current liabilities have exceeded current assets. Moreover, MPC has continued to default on repayments to creditors

“(These factors) indicate the existence of material uncertainties that may cast significant doubt on the ability of the group to continue as a going concern,” Messrs UHY said in an independent auditors’ report attached in MPC’s filing with Bursa Malaysia yesterday.

MPC may therefore be unable to realise its assets and discharge its liabilities in the normal course of business, UHY added.

The group’s current liabilities exceed its current assets by RM44.41 million. It has also defaulted in the repayment of revolving credit and bank overdraft facilities amounting to RM149.62 million.

MPC has also continued to default in a creditor repayment of up to RM115 million on a settlement agreement signed on March 10, 2014.

UHY also observed accounting records kept by MPC and certain of its units were not properly kept in accordance with the Companies Act 2016.

MPC’s financial statements for FY18 were prepared on a going concern basis, UHY said, with its appropriateness dependent on the successful formulation and implementation of its regularisation plan.

MPC has been a Practice Note 17 company since Dec 1, 2014 and had on July 13, 2018 secured approval for an extension of time until Dec 31, 2018 to submit its regularisation plan. Since June 25, MPC shares have been suspended from trade following a winding-up petition by RHB Bank Bhd.