External auditor expresses disclaimer in Stone Master accounts
PETALING JAYA: Stone Master Corp Bhd’s external auditor Messrs PKF has expressed a disclaimer of opinion in the company’s audited financial statement for the fiscal year ended Sept 30, 2017 (FY17).
Stone Master said yesterday PKF was not able to obtain sufficient appropriate audit evidence to provide for an audit opinion.
The issues concerned the opening the balances of the statements; current year unresolved matters; disclosure of contingent liabilities; and material uncertainty relating to the going concern basis.
PKF could not obtain sufficient audit evidence that the opening balances, that is balances as of Oct 1, 2016 for the following do not contain material misstatement.
Among them were the group’s trade payables of RM651,986; amount due to contract customer of the group amounting to RM536,508; non-trade payables and accrual of the group and of the company amounting to RM2.11mil and RM612,822 respectively.
Of concerns were the accuracy of the group’s revaluation reserves and its corresponding deferred tax liability amounting to RM4.15mil and RM1.90mil respectively.
Also highlighted was the nature and classification of certain consolidation adjustments amounting to RM1.53mil due to accumulated losses and revaluation reserves respectively.
PKF had also pointed out that Stone Master, during the financial year, incurred a net loss of RM4.65mil at group level and RM5.82mil at the company level. As at Sept 30, 2017, the current liabilities of the group and of the company exceeded current assets by RM17.30mil and RM17.55mil. The group and the company also recorded accumulated losses of approximately RM27.91mil and RM39.29mil respectively.
“As at the date of this report, as the company is currently in the midst of formalising the regularisation plan. The external auditors are unable to determine whether the regularisation plan will be approved by the relevant authorities and whether it will be successfully implemented for the group and the company to achieve sustainable and viable operations,” said PKF.