KUALA LUMPUR (Oct 2): Meridian Bhd’s (KL:MERIDIAN) auditors are doubting survival of the property company, drawing attention to multiple material uncertainties and missing accounting records.
UHY Malaysia PLT issued a ‘disclaimer of opinion’ in its report on Meridian, meaning that they refused to vouch for the accuracy of the financial statements prepared, and flagged the company’s ability to continue as a ‘going concern’ and to remain afloat.
A disclaimer of opinion is widely considered to be the worst possible outcome from an external auditor. A going concern, meanwhile, describes a company with enough resources to stay solvent.
Formerly Meda Inc Bhd, Meridian was best known as the original developer of The Summit USJ, a landmark mixed development in Subang Jaya opened in 1998. The property has since been sold to AmFIRST Real Estate Investment Trust (KL:AMFIRST).
Meridian’s loss after tax totalled RM11.18 million for the year ended May 31, 2026 (FY2026). Current liabilities, meanwhile, exceeded assets by RM48.1 million.
Insignificant operations, which have sent the company into Practice Note 17 (PN17) status, are also bleeding cash while it is still battling several legal proceedings. The auditor highlighted that Meridian had also defaulted on the repayment of bank borrowings.
The company has repeatedly asked for more time to submit its regularisation plan and the fifth application, for an extension up to June 25, 2027, is currently pending a decision by Bursa Malaysia.
UHY Malaysia, appointed on May 14, cautioned that it could not obtain sufficient evidence to ascertain the appropriateness of Meridian’s financial statements. Financial statements for the period ended May 31, 2025 were audited by Morison LC which had also expressed a disclaimer of opinion.
“The necessary fundamental accounting records and supporting documentation were not made available to us”, limiting its efforts to verify Meridian’s profit-and-loss statement and balance sheet, UHY Malaysia said.
Further, UHY Malaysia was also unable to verify the valuation of investment properties amounting to RM32.08 million and inventories totalling RM74.59 million without valuation reports and supporting information.
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