Olympia Industries served with ‘going concern’ opinion

PETALING JAYA: Investment holding firm Olympia Industries Bhd says its external auditors Messrs Ernst & Young PLT has issued the company an “unqualified opinion with material uncertainty related to going concern”.

The opinion issue was premised on Note 2.1 of the group’s financial statements as at Dec 31, which showed that its current liabilities exceeded its current assets by RM28.3mil, despite the Olympia Industries group and company having net assets of RM352.4mil and RM366.6mil respectively.

On the company level, current liabilities also exceeded current assets by RM5.7mil.

In a filing with Bursa Malaysia yesterday by Olympia Industries, the auditor also reported that the group has a secured term loan of RM120mil, which is due for partial repayments commencing from August, with full repayment due in August 2026.The statement read: “The group has been granted temporary indulgence from the remediation of security maintenance margin and interest service coverage ratio requirements until Jan 1, 2024.

“In the event that further indulgence is not granted, the ability of the group to comply with these term loan covenants subsequent to Jan 1, 2024 is dependent on amongst others, the improvement in the market conditions for the leasing of office space and the management’s efforts to improve the tenancy rates of the investment property to achieve profitable operations.”

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