This article first appeared in The Edge Financial Daily on October 5, 2017

KUALA LUMPUR: Perisai Petroleum Teknologi Bhd’s external auditor has warned of a material uncertainty with regard to the group’s financial statements for the year ended June 30, 2017 (FY17), which may cast doubt over the group’s ability to continue as a going concern.

In a filing with Bursa Malaysia yesterday, Perisai said Messrs Baker Tilly AC referred to the group’s statements on its net loss and net current liabilities for FY17, which stood at RM606.95 million and RM1.34 billion respectively.

“These events or conditions, along with other matters, indicate that there is a material uncertainty on the group’s and the company’s ability to continue as a going concern. Our opinion is not modified [with] respect [to] this matter,” Messrs Baker

Tilly said.

The auditor had expressed unqualified audit opinion on the financial statements of Perisai for FY17.

Meanwhile, Perisai said it is in the midst of formalising a restructuring and regularisation plan with its consultants to address its net current liabilities position and Practice Note 17 status.

“The group is pursuing all avenues available to recover the receivables,” it said.

Perisai’s share price closed unchanged at 4.5 sen yesterday, with a market capitalisation of RM63.02 million. Year to date, the stock has dropped 47.06%.