KUALA LUMPUR (Oct 18): Sarawak Cable Bhd said its external auditor Baker Tilly Monteiro PLT has issued a disclaimer opinion on the group's financial statements for the year ended May 31, 2023 (FY2023).

"We have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements," the group quoted the auditor as saying, in a bourse filing.

According to the auditor, Sarawak Cable's FY2023 financial position and the group's PN17 status indicate material uncertainties that may cast significant doubt on the group's ability to continue as a going concern.

Baker Tilly cited Sarawak Cable's net loss of RM98.7 million for FY2023, the group's current liabilities exceeding its current assets by RM237.9 million, and the group's capital deficiency of RM63.9 million.

"The directors of the company have not finalised the whole proposed regularisation plan. The proposed regularisation plan is subject to the company’s shareholders’ and relevant regulatory approvals," said the auditor.

"We have not been provided with the cash flow forecast incorporating the effects arising from the proposed regularisation plan to assess the ability of the group and of the company to continue as going concerns.

"Accordingly, we are unable to obtain sufficient appropriate audit evidence to support the validity of the assumption adopted by the directors in preparing the financial statements on a going concern basis,” it added.

Shares of Sarawak Cable closed unchanged at five sen on Wednesday, giving the group a market capitalisation of RM19.9 million.