Egyptian investment firm Novida Investment and Technology has addressed concerns raised by its auditor regarding its financial statements for the first half of 2026. In a statement to the Egyptian Exchange, the company responded to observations and reservations in the auditor's report. Novida provided clarification on its tax liabilities and confirmed it is taking necessary steps to settle and pay these dues.
The company emphasized that its tax liabilities, including wage and salary taxes, are duly recorded in its accounting records. Novida's management is working to complete settlements with the tax authority to ensure compliance with legal deadlines and avoid additional fines or burdens resulting from delays.
Novida also addressed concerns regarding its social insurance obligations and cooperative contributions. The company stated it has reviewed and verified the relevant balances and is taking concrete steps to settle and pay these dues in line with available financial resources. Novida expressed its commitment to regular payments and avoiding the accumulation of additional fines.
Regarding the adequacy of its tax provisions, Novida's management, in collaboration with its tax consultant, is preparing a comprehensive study to assess the sufficiency of provisions recorded in its books by the end of the fiscal year ending December 31, 2026. This study will consider potential tax liabilities and risks from previous years in accordance with Egyptian accounting standards.
In response to the auditor's concerns about Novida's ability to continue operating, given its accumulated losses and short-term liabilities exceeding assets, the company reported that an extraordinary general meeting was held on August 13, 2026. The meeting resulted in a formal decision to approve the company's continued operation despite losses exceeding 50% of shareholders' equity.
Novida's management expressed confidence in the company's ability to navigate its current challenges. The company is working diligently to address its financial obligations and ensure business continuity. Novida's strategic plans and initiatives aim to enhance its financial position and restore profitability.
The company's decision to continue operations is seen as a positive step by investors and stakeholders. Novida's commitment to transparency and accountability is reflected in its detailed response to the auditor's concerns. The company's future performance will depend on its ability to implement its plans and improve its financial situation.
Key points
- Novida Investment and Technology has addressed concerns raised by its auditor and confirmed its commitment to business continuity despite accumulated losses.
- The company is taking steps to settle its tax liabilities and social insurance obligations.
- Novida's management is preparing a comprehensive study to assess the adequacy of its tax provisions.
