Auditors qualify 4 companies' accounts

PETALING JAYA: Compugates Holdings Bhd, Niche Capital Emas Holdings Bhd, China Ouhua Winery Holdings Ltd and VTI Vintage Bhd's financial statements for the financial year ended Dec 31, 2013 (FY13) have been qualified by external auditors.
Compugates' external auditors Messrs Baker Tilly Monteiro Heng said it was unable to obtain sufficient appropriate audit evidence pertaining to a professional fee of RM3 million for advisory support services.
For Niche Capital, Baker Tilly said, it was unable to obtain sufficient appropriate audit evidence on the recognition of RM11.51 million as other income and the other receivable. It added that it was also unable to obtain sufficient appropriate audit evidence and satisfactory information and explanations on the RM9.73 million that was transferred to Niche's third party supplier.
VTI's external auditors Messrs CHI-LLTC said the group and the company prepared their financial statements by applying the going concern assumption, notwithstanding that during FY13, the group incurred losses of RM2.73 million and the group's and the company's current liabilities exceeded their current assets by RM50.12 million and RM10.07 million respectively.
VTI is currently a Practice Note 17 company.
"We were unable to ascertain the ability of the group and of the company to continue as going concern which is dependent on the successful completion of the proposed regularisation plan, achieving sustainable and viable operations and generating adequate cash flows from its operating activities," CHI-LLTC said.
China Ouhua Winery Holdings Ltd's external auditors Messrs Helmi Talib & Co said in the absence of an independent valuation of assets acquired by the group in Yantai district of China, it was unable to ascertain whether the net recoverable amount of the assets acquired will exceed its total purchase consideration of RMB132 million.
"In addition, we have not been able to obtain sufficient appropriate audit evidence to satisfy ourselves of the extent of recoverability of the deposits of RMB118.8 million in the event that the transaction is not completed. Consequently, we were unable to determine whether the carrying amount of deposits is fairly stated," Helmi Talib said.
It added that it was unable to obtain sufficient appropriate evidence about the collectability of the group's past due trade receivables of RMB44.93 million.
"Consequently, we were unable to determine whether any impairment adjustment to this amount was necessary."