Nam Cheong's future in doubt says auditorYard News // March 20, 2017
Nam Cheong Limited says its auditors have cast doubt on its ability to continue as a going concern.
The company said its auditors, BDO LLP, included an emphasis of matter with respect to the material uncertainty related to going concern in their report on financial statements for the group for the financial year ended 31 December 2016.
BDO LLP said: "For the financial year ended 31 December 2016, the group experienced a significant decrease in revenue and incurred a net loss of approximately RM42,771,000 due to deferment of the delivery of vessels that had been requested by several customers. The current downturn in the oil and gas industry may continue to add pressure to the group’s financial performance and its operating cashflows.
"As at 31 December 2016, the group’s loans and borrowings that were classified as current amounted to RM948,720,000 of which RM278,566,000 (S$90 million) pertained to medium term notes that are due for repayment on 28 August 2017. These amounts exceeded the group’s cash and cash equivalents of RM162,618,000 as at 31 December 2016."