Auditor raises concern over Perak Corp

PETALING JAYA: Perak Corp Bhd’s independent auditor Messrs Ernst & Young have raised concerns over its ability continue as a going concern due to its losses and liabilities.

Perak Corp incurred a net loss of RM340.6 million for the year ended Dec 31, 2017, with its current liabilities exceeding current assets by RM158.5 million.

In order to address the material uncertainty, it said the management will continue to negotiate with the banks with the view of restructuring the terms of the syndicated term loan; dispose of certain land for cash to meet any payment obligation should the need arise; ultimate holding corporation will continue to provide financial assistance; focus on cost saving and stringent cash flow management to remain competitive.

Meanwhile, Perak Corp announced a widened net loss of RM11.45 million for the first quarter ended March 31 compared with RM6.79 million in the same period a year ago, due to higher operating expenses and finance costs.

However, its revenue soared 54.8% to RM48.15 million from RM31.11 million.

In a separate filing with the stock exchange, Perak Corp also revealed that its settlement agreement with Perak Equity Sdn Bhd (PESB) has yet to be completed after five years due to the non-fulfilment of certain conditions.

The agreement was entered on Feb 28, 2012 to partially settle the total debt owing by PESB to Perak Corp by way of set-off against the total purchase sum of RM70.27 million for two properties to be acquired by Perak Corp from PESB.