Trading in Meridian Bhd shares was suspended by Bursa Malaysia on Friday morning following the release of its audited financial statements, in which external auditor UHY Malaysia PLT issued a disclaimer of opinion on the group’s accounts for the financial year ended May 31, 2026.
The auditor said it was unable to obtain sufficient appropriate audit evidence to form an opinion on Meridian’s financial statements, citing concerns over the group’s going-concern position, opening balances and the valuation of certain assets.
Among the going-concern issues highlighted, Meridian recorded a group net loss of RM11.18 million, while current liabilities exceeded current assets by RM48.11 million as at May 31. The group also recorded negative operating cash flow of RM1.93 million and had defaulted on certain bank borrowings, which are subject to ongoing legal proceedings.
Meridian remains classified as a Practice Note 17 (PN17) company. Its fifth application for more time to submit a regularisation plan, seeking an extension until June 25, 2027, was still pending Bursa Securities’ decision as at the date of the auditor’s report.
UHY also said it could not verify Meridian’s opening balances as at June 1, 2025 because fundamental accounting records and supporting documents were not made available. An independent consultant appointed on Sept 29 to review the issue had yet to begin work when the audit report was signed.
Separately, valuation reports supporting RM32.08 million of investment properties and RM74.59 million of inventories had also not been provided to the auditor, preventing it from determining whether adjustments were required.
The auditor further reported that certain accounting and other records had not been properly kept and that it had not obtained all information and explanations required for the audit.
Meridian’s FY2025 financial statements had also received a disclaimer of opinion from its previous auditor.
