This article first appeared in The Edge Financial Daily on September 28, 2018

KUALA LUMPUR: For the second year running, the external auditor of Perisai Petroleum Teknologi Bhd has warned of a material uncertainty concerning the group’s financial statements.

Messrs Baker Tilly Monteiro Heng issued the “Material Uncertainty Related to Going Concern” statement yesterday in respect of Perisai’s audited results for the financial year ended June 30, 2018 (FY18), Perisai said in a filing with the stock exchange.

The same auditor had issued a similar statement in respect of the group’s FY17 results on Oct 4 last year.

The auditor noted that in FY18, Perisai had incurred a net loss of RM469.25 million, net current liabilities of RM1.31 billion, and capital deficiencies of RM258.58 million, at group level.

This, the auditor said, indicates that a material uncertainty exists that may cast significant doubt on Perisai’s ability to continue as a going concern.

Perisai, in its filing, said it hadsubmitted its regularisation plan, which would address its net current liabilities position and its Practice Note 17 (PN17) status.

The plan is currently pending approval from the relevant authorities.

Perisai fell into PN17 status in October 2016 after its unit Perisai Capital (L) Inc defaulted on payment of the principal and interest for S$125 million multi-currency medium term notes.

Perisai shares closed at three sen yesterday for a market capitalisation of RM37.82 million.