KUALA LUMPUR (Sept 22): YFG Bhd announced that it has fallen into the PN 17 category after auditors expressed an emphasis on the company’s and its subsidiaries’ ability to continue as a going concern.

YFG’s reissued audited financial statements for the financial year ended June 30, 2014 under the directive from the Securities Commissions Malaysia shows that its shareholders’ equity as at June 30, 2014 was less than 50% of the issued and paid-up capital of the company.

As at June 30, 2014, YFG’s issued and paid-up capital totalled to RM54.47 million whereas its shareholders’ equity was only RM24.9 million, falling short of the 50% threshold.

This is mainly because of YFG’s accumulated losses that has ballooned to RM38.7 million, causing the reserves to fall into a deficit of RM29.57 million. For the financial year 2013, the reserves was at a deficit of RM16.01 million.

YFG has 12 months to submit a regularisation plan to the authorities or it risks being suspended from trading and de-listed from the stock exchange.

“The company is looking into formulating a plan to regularise its financial condition and the announcement will be made in due course,” said YFG in the announcement.