Saturday 9 May 2015

Qualified opinions on 6 listed companies

From MSWG's weekly newsletter of May 8, 2015:


AUDITORS ISSUED QUALIFIED OPINIONS ON 6 COMPANIES LISTED ON BURSA MALAYSIA
 

No
Name of Listed Company
Date of Announcement
Auditor
Basis of Opinion (Salient Points)
1
NPC Resources Berhad
30 April 2015
Ernst & Young
Insufficient time to perform sufficient audit procedures as the audited financial statements of three foreign subsidiaries were only available close to the date of the financial statements of the Group were approved by the Board.
 
2
Silver Ridge Holdings Bhd
30 April 2015
Baker Tilly Monteiro Heng
Unable to obtain sufficient and appropriate audit evidence on the recoverability of receivable.
 
3
Stemlife Berhad
30 April 2015
Ernst & Young
i)  Non-compliance with the requirements of MFRS 4 (Insurance Contracts) for the assessment of insurance liabilities and revenue associated with insurance contracts; and

ii) insufficient access to the financial information and management of an associate.
 
4
Wintoni Group Berhad
5 May 2015
SJ Grant Thornton
Unable to physically sight the Group’s computer equipment.
 
5
China Ouhua Winery Holdings Limited
30 April 2015 & 5 May 2015
Helmi Talib & Co.
Unable to ascertain whether the net recoverable amount of an asset acquired in China will exceed the total purchase consideration.
 
6
Ire-Tex Corporation Berhad
5 May 2015
UHY
Unable to validate the existence of sales of RM5 million to 2 related parties which were subsequently impaired.
 


MSWG’S COMMENTS:
It is a bit out of the norm though not totally surprising that within a short period of time there were 6 public listed companies where their independent auditors had qualified their opinions on their audited financial statements highlighting issues of concern for investors to take note.
 
It may also serve as a ‘red flag’ or early warning signal to audited financial statement readers particularly shareholders, investors and potential investors who may need to make more informed investment decisions.

2 comments:

  1. Can Bursa analyse who are the people behind the companies with qualified accounts eg shareholders, directors and management? Any of them are involved in more than one of such companies?

    The similar characteristics of such category of companies

    The findings will be interesting.

    ReplyDelete
  2. Yes, they should know. Also interesting who brought them to the market, which broker.

    ReplyDelete