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Auditor report piles misery on M&M-owned Korean automaker SsangYong Motor

A 'disclaimer of opinion' is one among the four different types of auditor's opinions issued against a company's financial results.

May 18, 2020 / 05:15 PM IST
SsangYong Tivoli

SsangYong Tivoli

KPMG Samjong, the auditor of Mahindra and Mahindra-owned Korean automobile company SsangYong Motor, has issued a 'disclaimer of opinion' on the automaker's quarterly financial results, according to a a report by Yonhap News Agency.

SsangYong's net loss widened in the first quarter of this financial year, making it the 13th consecutive quarter where the company continues to post hefty losses. The auditor said these issues raised a question over the company's ability to remain viable.

As its current debts surpassed its current assets by 576.7 billion won this quarter, SsangYong's shares tumbled on the back of the news.

A 'disclaimer of opinion' is one among the four different types of auditor's opinions issued against a company's financial results.

Indian automaker Mahindra and Mahindra owns around a 74 percent stake in the Korean carmaker. SsangYong has been struggling to keep up its numbers due to declining sales, while the parent firm has yet decided against liquidity infusion.

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Earlier this year, M&M had plans of putting in 230 billion won into SsangYong subject to its board's approval. However, the board struck down the plan last month in light of the effects of the COVID-19 outbreak on the domestic automobile industry.
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