Auditor qualifies FSBM’s FY15 financial statements

PETALING JAYA: FSBM Holdings Bhd’s external auditor Messrs Ernst & Young has qualified the company’s audited financial statements for the financial year ended June 30, 2015 as it is unsure whether an amount due from Technitium Sdn Bhd (TSB) is recoverable.

At the group and company level, the amounts due stood at RM7.61 million (RM33.74 million less impairment amount of RM26.13 million) and RM1.05 million (RM8.77 million less impairment amount of RM7.73 million) respectively.

FSBM directors have commenced certain debt recovery legal proceedings and are of the view that the carrying amount is recoverable.

“However, as the outcome of the various debts recovery legal proceedings cannot be ascertained at this point in time, we are unable to satisfy ourselves as to whether the above carrying amount is recoverable,” Messrs Ernst & Young said.

FSBM said it had filed a suit in the high court for the recovery of debts against the two directors of TSB and an individual.

In addition, there is a legal claim against a debtor of TSB for the outstanding balance due and owing to TSB.

“Based on the advise of our solicitors and liquidators and on the documents recovered by the liquidators, the directors are confident that the group will succeed in the legal actions against the two directors, an individual and TSB’s debtor,” said FSBM.