KUALA LUMPUR (Dec 13): Brahim’s Holdings Bhd shares slumped 14% this morning after its external auditor Messrs PricewaterhouseCoopers PLT (PwC) voluntarily resigned with immediate effect.
At 9.06am, Brahim’s fell 4 sen to 24.5 sen, valuing it at RM57.89 million.
No reason was given for the resignation. PwC, which was re-appointed the group's auditor at its annual general meeting (AGM) on May 4, was to hold office until the conclusion of the group's next AGM.
Brahim’s said it has identified Messrs Baker Tilly Monteiro Heng PLT as the new auditors for the current financial year ending Dec 31, 2019 (FY19).
On April 16, PwC made an unqualified opinion on Brahim’s FY18 financial statements, highlighting a material uncertainty related to the group’s going concern.
The auditor pointed to Note 2 in the group’s financial statements for FY18 which stated that Brahim’s had incurred a net loss after tax of RM116 million and RM59.6 million at the group and company level, while liabilities had exceeded current assets by RM56.6 million and RM80.2 million respectively.
PwC said Brahim’s also did not meet certain financial covenants for a term loan as at Dec 31, 2018, as disclosed in Note 25 of its financial statements.
It said the losses incurred by the group, coupled with the net current liabilities, has indicated the existence of a material uncertainty that may cast doubt over the group’s ability to continue as a going concern and therefore may not be able to realise the assets and discharge the liabilities in the normal course of business.