KUALA LUMPUR (May 27): An audit on 1Malaysia Development Bhd's (1MDB) former unit Edra Global Energy Bhd showed "material uncertainty" on Edra's financials, The Wall Street Journal (WSJ) reported, quoting auditor Deloitte.

WSJ reported that notes from Deloitte in the 140-page financial accounts of Edra for financial year ended March 31, 2015 (FY15), indicated “an existence of a material uncertainty which may cast significant doubt about the group’s and company’s ability to continue as a going concern.”

"The auditor’s notes, reviewed by The Wall Street Journal, are part of the most detailed account of Edra’s finances at the time that China General Nuclear Power Corp purchased the firm for RM9.83 billion (US$2.4 billion) last November as the fund, known as 1MDB, was struggling to meet its debt obligations.

"The financial accounts showed that not only was Edra incurring more losses for the financial year ended March 31, 2015, from a year earlier, but the company seemed to be having difficulty meeting its debt obligations," WSJ reported.

WSJ reported that Edra's net loss jumped to RM475.07 million, from a net loss of RM60.3 million a year earlier, while revenue rose 33%.

According to WSJ's report, Edra's debt obligations due within a year from FY15 were 38% higher than its current assets as of March 31, while net current liabilities amounted to some 84% of cash generated from operations.

WSJ quoted a China General Nuclear representative as saying the company “doesn’t have any information to share at this stage” about its 1MDB deal.

WSJ reported 1MDB did not respond to a request to comment on Edra's financials. WSJ said a Deloitte spokeswoman declined to comment on the matter, due to client confidentiality.