Auditor qualifies opinion on China Ouhua’s accounts again

PETALING JAYA: China Ouhua Winery Holdings Ltd’s external auditor Messrs Helmi Talib & Co has issued a qualified opinion on the company’s audited financial statement for the financial year ended Dec 31, 2016 for the same issue which had made it do the same for its audited results for the financial year ended Dec 31, 2015.

The matter revolves around the recoverability of a RMB118.8 million (RM75.9 million) deposit to Huangwu Subdistrict Office for a RMB132 million purchase of land, building and ancillary facilities done in 2012.

The auditor said it was unable to determine whether the net recoverable amount of the assets acquired would exceed the purchase price, without an independent valuation on the assets purchased and also how much of the deposit paid would be able to be recovered in the event of the transaction not being completed.

Consequently, the auditors were unable to determine whether any adjustments to the carrying amount of deposits as at Dec 31, 2016 were necessary, and also the possible effects of this matter on the company’s audited numbers.