Censof auditor qualifies opinion on sum owed by customers

PETALING JAYA: Censof Holdings Bhd’s external auditor Messrs Crowe Horwath has expressed a qualified opinion in the company’s audited financial statements for the financial year ended March 31, 2016, on the RM6.7 million owed by its contract customers.
Censof directors are of the view that the amount, which is linked to a project with a government agency, is recoverable and therefore no impairment loss has been made in the financial statements.
However, given that the amount is long outstanding, the auditor is of the view that an adjustment for impairment loss should be made, which will lead to a decrease in profit and retained profit for the year.
“The recoverability of this balance is dependent upon the completion of the relevant acceptance test results, successful negotiations with customers and approval of proposals submitted to the customers,” it said.
Censof swung to the red, registering a net loss of RM7.08 million, for the financial year ended March 31, 2016 against a net profit of RM7.68 million in the previous year, due to impairment loss on receivables.