Y Ventures says it can continue as a going concern

Singapore two-dollar bills

Y Ventures said on Tuesday that it believes it can continue as a going concern, citing access to credit lines and financial assistance from major shareholders.

Certain major suppliers have extended credit terms of three to six months, Y Ventures said in a filing to SGX late on Monday.

The company added it would have enough cash from the drawdown of available credit lines, cash from operations and other potential fund raising options to pay for continuing operations and repay debts as they fall due in the financial year, Y Ventures said.

It added that major shareholders Low Yik Sen and Low Yik Jin have said they will provide unconditional financial assistance of up to US$1.0 million to meet obligations for the financial year.

Y Venture’s comments followed its independent auditor, Baker Tilly TFW LLP, saying there was material uncertainty the company could continue as a going concern.

The auditor pointed to a net loss of US$4.0 million for the financial year, while net cash was at US$2.41 million.

 

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