KUALA LUMPUR (May 24): Perak Corp Bhd shares slumped 16.48% after its external auditors have issued a statement of material uncertainty over the company's ability to function as a going concern.

At 10.34am, Perak Corp lost 14.5 sen to 73.5 sen with 206,500 shares done.

"The group incurred a net loss of RM340.6 million during FY17 and, as of end-2017, the group's current liabilities exceeded its current assets by RM158.5 million," Ernst & Young said, adding a material uncertainty exists that could cast significant doubt over the group's ability to continue as a going concern.

In a bourse filing today, the group said the auditors had also highlighted an impairment test — which resulted in a loss of RM167.2 million — as an area of audit focus due to the significance of the amount and subjectivity involved.

This is related to property, plant and equipment of a subsidiary operating a theme park, where commencement of full operation had been delayed numerous times.