Auditor flags material uncertainty over Bertam Alliance’s ability to continue as going concern

• Bertam Alliance said it is taking measures to mitigate the material uncertainty on going concern within the next 12 months.

KUALA LUMPUR (May 12): Bertam Alliance Bhd said its external auditor has expressed its unqualified opinion with material uncertainty related to the group's ability to continue as a going concern, with regards to its audited financial statements for the financial year ended Dec 31, 2022 (FY2022).

Messrs PKF highlighted that Bertam Alliance incurred negative operating cash flows of RM1.47 million during FY2022 and its current liabilities has exceeded its current assets by RM17.09 million, the property developer said in a bourse filing on Thursday (May 11).

Bertam Alliance said it is taking measures to mitigate the material uncertainty on going concern within the next 12 months.

It said that Mercury Securities Sdn Bhd, on behalf of the Bertam Alliance board, had submitted an application in regards to its regularisation plan on March 30 last year and submitted a revised application on Feb 21 this year.

As of now, Bertam Alliance said the application is pending approval from Bursa Securities.

Messrs PKF had also previously expressed its unqualified opinion with material uncertainty related to going concern in Bertam Alliance’s audited financial statements for FY2021.

Then, PKF said Bertam Alliance incurred a net loss of RM4.83 million and negative operating cash flows of RM3.18 million during FY2021, and its current liabilities exceeded its current assets by RM32.25 million. 

At that time, Bertam Alliance said it had announced a proposed regularisation plan which entails proposed shares issuance, whereby the company entered into conditional subscription agreements with subscribers Richard Ling Do Nyean and Law Ngia Meng for the proposed issuance of 74.43 million new ordinary shares in Bertam Alliance. 

The group said the proposed regularisation plan also included proposed renounceable rights issue of up to 161.27 million new Bertam Alliance shares on the basis of one rights share for every two existing shares held, together with up to 161.27 million free detachable warrants in Bertam Alliance on the basis of one warrant for every one rights share. 

Bertam Alliance was classified as a Practice Note 17 (PN17) company on April 4, 2018 after Bursa rejected its application for a waiver after taking into consideration the winding-up order against its wholly-owned unit Bertam Development Sdn Bhd, which accounts for at least half of the company's total assets.