KUALA LUMPUR: Meridian Bhd
’s external auditors have issued a disclaimer of opinion on the group’s financial statements for the financial year ended May 31, 2026, citing going-concern uncertainties and insufficient audit evidence on several matters.
In a filing with Bursa Malaysia, Meridian said UHY Malaysia PLT was unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion.
The auditor highlighted material uncertainties that could cast significant doubt on Meridian’s ability to continue as a going concern.
The group posted a net loss of RM11.18mil for FY26, while its current liabilities exceeded current assets by RM48.11mil as at May 31, 2026.
It also recorded negative operating cash flow of RM1.93mil and had defaulted on repayments of certain bank borrowings.
Meridian has been classified as a Practice Note 17 (PN17) company since April 2024 and is in the process of formulating a plan to regularise its financial condition.
The company submitted its fifth application on Sept 11 for a nine-month extension until June 25, 2027 to submit its regularisation plan.
Bursa Malaysia Securities’ decision was pending as at the date of the auditors’ report.
UHY said the group’s ability to continue as a going concern depended on the approval and successful implementation of its regularisation plan, continued funding support and its ability to generate sufficient cash flow to meet its obligations.
The auditor also said it could not obtain sufficient audit evidence relating to Meridian’s opening balances and the valuation of its investment properties and inventories.
Separately, Bursa Malaysia said trading in Meridian securities was halted from 9am on Friday, Oct 2, following the company’s announcements on Oct 1. Trading resumed at 10am on Friday.
