KUALA LUMPUR (Nov 1): Malaysia Pacific Corp Bhd (MPCorp) has been issued a disclaimer audit opinion on its financial statements for the financial year ended June 30, 2016 (FY16).

This is the third time the company has been issued a disclaimer of audit opinion on its annual account since FY14. 

In a filing with Bursa Malaysia yesterday, MPCorp said its external auditor Messrs UHY's had not been able to obtain sufficient appropriate audit evidence on several matters to provide a basis of an audit opinion, thus it did not express an opinion on the financial statements. 

The disclaimer of opinion is premised on Note 2(C) to the financial statements where, the group's current liabilities have exceeded its current assets by RM34.39 million as at June 30, 2016, after reporting a net loss of RM84.27 million and RM105.26 million in the group and company level respectively for FY16. 

And as disclosed in Note 16, UHY said the company has defaulted in the repayments of principal sums and interest in respect of revolving credit and bank overdraft facilities since March 8, 2013, and has continued defaulting in the repayment of revolving credit and bank overdraft facilities in FY16, amounting to RM118.96 million. 

Further, it noted that one of MPCorp's subsidiary is being sued for some RM113.17 million, together with an interest of 7.2% per annum calculated from Sept 17, 2012, until full settlement.

Meanwhile, UHY is unable to confirm or verify by alternative means as to whether the carrying amounts of the creditors balances for FY16 were appropriate, as replies relating to certain creditors confirmation requests of certain subsidiary companies are still outstanding.

Further, in the current financial year, UHY said a subsidiary of MPCorp had, on the approval of its board of directors, mutually terminated a sale and purchase agreement in relation to the sale of land in Mukim Plentong, Johor, as disclosed in Note 8(c) of the financial statements, with total revenue and cost recognised in previous years amounting to RM10.74 million and RM6.89 million, respectively.

"We are unable to determine whether any adjustments are to be made in the current financial year until the conclusion of the extraordnary general meeting," it added.

Other than its property investment in Wisma MPL in Kuala Lumpur, MPCorp is also known for having businessman Datuk Tey Por Yee as one of its substantial shareholders, with a 4.97% stake in the company, according to its Annual Report 2016.

MPCorp closed unchanged at 15 sen yesterday, for a market capitalisation of RM43.15 million.