KUALA LUMPUR (April 13): Parkson Holdings Bhd said its external auditor has reported a material uncertainty that may cast significant doubt on the group's ability to continue as a going concern.

This is in respect of the retailer's audited financial statements for the 18-month period ended Dec 31, 2021  (FY21), Parkson said in a filing with Bursa Malaysia.

The group said the auditor, Grant Thornton Malaysia PLT, referred to a note in the financial statements which indicated that Parkson reported a net loss of RM129.93 million for FY21, and that its current liabilities exceeded its current assets by RM1.49 billion.

"These events or conditions, along with other matters as set forth in [the note] indicate that a material uncertainty exists that may cast significant doubt on the group's ability to continue as a going concern.

"The ability of the group to continue as going concern is dependent on attaining future profitable operations and conditions," the auditor was quoted as saying in its report.

In a separate filing, Parkson said it has reassessed its condition and concluded that it does not trigger any Practice Note 17 (PN17) prescribed criteria based on its results for FY21.

"Hence, the company is not an affected listed issuer pursuant to PN17 of [Bursa's Main Market Listing Requirements]," the retailer said.

Parkson triggered PN17 criteria in October 2020 after its auditor issued an audit opinion on material uncertainty related to a going concern.

This came as the group's shareholders' equity, on a consolidated basis as at June 30, 2020, of RM1.59 billion was less than 50% of its issued share capital of RM4.15 billion.

However, pursuant to the PN17 relief measures granted to affected listed issuers by Bursa Securities, Parkson was not classified as a PN17 listed issuer, and was not required to comply with the PN17 obligations for a period of 12 months from Oct 15, 2020.

"Subsequently, Bursa Securities via its letter dated Feb 17, 2021 extended the 12-month period to 18 months for the affected listed issuer to reassess its condition and make the announcement [on] whether it continues to trigger any of the prescribed criteria under PN17 of the Main LR (Main Market Listing Requirements)," the group said.

Shares in Parkson finished 0.5 sen or 2.63% lower at 18.5 sen, giving it a market capitalisation of RM212.55 million.