Stone Master accounts get disclaimer

> External auditor firm issues disclaimer of opinion on firm’s financial statements for fiscal year ended Sept 30, 2017

PETALING JAYA: Practice Note 17 (PN 17) company Stone Master Corp Bhd’s external auditor Messrs PKF said it was unable to determine whether there were misstatements in the opening balances of the company’s audited financial statements for the year ended Sept 30, 2017 that may materially affect the company’s financial performance, cash flows and financial position.

This led it to express a disclaimer of opinion on the company’s audited financial statements.

During the financial year, Stone Master incurred a net loss of about RM4.66 million at the group level, while current liabilities and accumulated losses stood at RM17.3 million and RM27.91 million.

PKF highlighted that there is material uncertainty on the outcome of the company’s legal suits with Quantum March Sdn Bhd, that carries a potential financial impact to Stone Master of up to RM20 million together with a yet to be ascertained sum.

Meanwhile, Starfield Capital Sdn Bhd is also demanding from Stone Master a repayment of loans in default amounting to RM18 million together with interest.

This however, would be potentially mitigated by the recovery of monies held in former deputy managing director Datin Chan Chui Mei’s bank account amounting to RM11.54 million, arising from the Securities Commission’s (SC) legal suit against Chan for causing wrongful loss to the company. In the suit, the SC applied for an injunction to restrain Chan from dealing with these monies.

Stone Master has been granted an extension till June 5, 2018 to submit its regularisation plan.

PKF said the company’s ability to operate as a going concern is dependent upon the outcome of the legal suits, implementation of its revamp plan and the sustainability of its operations.