KUALA LUMPUR (Dec 30): Sarawak Cable Bhd (SCB) has triggered the suspended criteria of Practice Note 17 (PN17), but will not be classified as a PN17 company, thanks to Bursa Malaysia’s relief measures.
In a filing, the cable manufacturer said it triggered the PN17 criteria as its shareholders’ equity on a consolidated basis is 50% or less of its share capital, based on its financial results for the quarter ended Nov 30, 2021 announced on Thursday (Dec 30).
SCB added that its external auditor, Ernst & Young PLT, had highlighted a material uncertainty related to its going concern in the group’s financial statements for the financial year ended Dec 31, 2020, and as such, the group has triggered the PN17 suspended criteria.
SCB will however not be classified as a PN17 company, in line with Bursa Malaysia’s relief measures for the period from July 1 to Dec 31, 2021, under which affected groups will be accorded relief from complying with the PN17 obligations for a period of 18 months.
“SCB will reassess its condition and announce whether it continues to trigger any of the PN17 suspended criteria upon the expiry of the 18 months,” it added.
For the quarter ended Nov 30, 2021, SCB reported a net loss of RM11.34 million with a revenue of RM175.08 million. The quarter is classified as "other", as the group had recently changed its financial year end from Dec 31 to May 31.
Sarawak Cable’s share price closed unchanged at 30.5 sen on Thursday, valuing the group at RM119.73 million. The stock has fallen 32.22% since the start of this year.