Pharmaceutical company Pharmaniaga Berhad’s independent auditor Messrs PricewaterhouseCoopers (PwC) PLT has reported a material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern.
PwC, in its audit of Pharmaniaga’s financial statements for the financial year ended Dec 31, 2022 (FY2022), indicated that the group’s current liabilities exceeded its current assets by RM632.1 million while the company’s current liabilities exceeded its current assets by RM411.2 million.
According to the auditor, the group also recorded a capital deficiency of RM227.4 million at end-December. “These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the group’s and the company’s ability to continue as a going concern,” said PwC in Pharmaniaga’s filing on June 20.
Pharmaniaga expects to resolve issues related to the material uncertainty surrounding its ability to continue as a going concern by the second quarter of 2024.
The group, which slipped to Practice Note 17 (PN17) status in February after being hit by RM552 million impairment on Covid-19 vaccines, is formulating its regularisation plan. Pharmaniaga is expected to announce the plan to Bursa Malaysia in August, Defence Minister Datuk Seri Mohamad Hasan said recently.
Recently, Pharmaniaga announced a private placement of up to 10 per cent of its total issued shares to raise RM44.54 million for working capital, particularly for payments to suppliers and trade creditors.
As at end-March, its short-term debts stood at RM1.03 billion. It had receivables of RM552.4 million and payables of RM881.1 million.
Pharmaniaga’s largest shareholder is Boustead Holdings Bhd with a 52 per cent stake. Boustead is being taken private by the Armed Forces Fund (LTAT), which controls a 97.63 per cent stake in the conglomerate. – The Health