Zelan external auditors PwC uncertain over its outlook after losses

Scomi Group Bhd surprised investors when it proposed to revise its current issued share capital reduction from RM224.96mil to RM3mil from the earlier RM40mil.

KUALA LUMPUR: Trading in the shares of Zelan Bhd was halted for an hour until 10am on Wednesday after its external auditors, expressed concern about the outlook for the company following its losses.

Zelan said Messrs. PricewaterhouseCooper PLT had issued a statement of “material uncertainty related to going concern of the group and the company” for financial statements for FY ended Dec 30, 2017.

PwC pointed out the group and the company incurred a net loss after taxation of RM74.3mil and RM2.2mil respectively for FY17.

“As of that date, the group and the company’s current liabilities exceeded the current assets by RM269.5mil and RM47.4mil respectively,” it said. 

PwC added there was a material uncertainty that might cast significant doubt on the ability of the group and the company to continue as going concerns.