KUALA LUMPUR: The master franchisee of TGI Fridays Malaysia, Techna-X Bhd, narrowly escaped a trading suspension of its shares after it filed its annual report for the financial year ended June 30, 2024 yesterday.
Its shares were to be suspended today if it failed to meet the deadline.
The company is not out of the woods yet though, as the company's external auditors HLB Ler Lum Chew Plt flagged a going concern issues for the company given that the group's and the company's current liabilities exceeded its current assets by RM79.6 million and RM25 million respectively.
"These indicate that a material uncertainty exist that may cast significant doubt about the group's and the company's abilitiy to continue as going concerns. Our opinion is not modified in this matter," the company said in a filing with Bursa Malaysia Securities.
Its auditor's also have a qualified opinion on the company's financial statements given that limited evidence for investment in a foreign associate, Guangxi Aerospace Beidou new Energy Industry Technology Co Ltd.
The auditors also highlighted limited evidence of key assumptions made by the group in booking a RM9.7 million impairment loss for good and source codes and software for the technology and digital transformation enabler cash generating unit.
Techna-X said the group undertakes an annual impairment assessment on its cash-generating units (CGU) identified based on its technology-driven food and beverage (Malaysia operations), technology-driven food and beverage (China operations) and technology and digital transformation enabler segments, being the lowest level of asset for which the management monitors the goodwill of the group.
It also said it expects to resolve the issue relating to the qualified opinion within 12 months.
Techna-X's share price was up 5.26 per cent to 10 sen a share earlier.