KUALA LUMPUR: Independent auditor PricewaterhouseCoopers (PwC) has raised material uncertainty on Pharmaniaga Bhd's ability to continue as a going concern.
PwC raised this concern in its audit of Pharmaniaga's financial statements for the financial year ended Dec 31, 2022 (FY22).
The audit firm drew attention to Note 2 in the financial statements, which indicates that the group incurred a net loss of RM605.1 million for FY22.
It added that as of that date, Pharmaniaga's current liabilities exceeded its current assets by RM632.1 million and RM411.2 million respectively.
PwC highlighted that the group recorded a capital deficiency of RM227.4 million as at Dec 31 last year.
"As stated in Note 2, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the group's ability to continue as a going concern," the firm added.
Previously, Pharmaniaga had appointed MIDF Amanah Investment Bank Bhd as the principal adviser to assist in the formulation of a regularisation plan for the group.
Pharmaniaga is still in the process of formulating a comprehensive regularisation plan for submission to Bursa Malaysia.
The regularisation plan will encompass fund-raising exercise by the group to address its financial issues.
The group is expected to make the necessary announcement on the same in accordance with the requirements under PN17 once the regularisation plan has been finalised.
Pharmaniaga had also announced a proposed private placement of up to 10 per cent of per cent of its total issued shares.
The proposed private placement is expected to improve the group's liquidity and financial flexibility. This is by strengthening its capital base and financial position at this juncture while waiting for the regularisation plan to be finalised.
Pharmaniaga expects to resolve the issues relating to the material uncertainty by the second quarter of 2024.