Auditor qualify opinion on FSBM’s FY16 accounts

PETALING JAYA: FSBM Holdings Bhd’s external auditor Messrs Ernst & Young (EY) has expressed a qualified opinion on FSBM’s annual audited financial statements for the financial year ended June 30, 2016 (FY16) in relation to a debt recovery amounting to RM8.66 million.
EY said included in trade and other receivables of the group and the company are amounts due from Technitium Sdn Bhd of RM7.61 million and RM1.05 million respectively, from 2015.
FSBM directors have commenced certain debt recovery legal proceedings and are of the view that the carrying amounts are recoverable.
“However, the outcome of the various debt recovery legal proceedings cannot be ascertained as at the date of this report, particularly as to the timing and amount of any eventual settlement. Accordingly, we were unable to obtain sufficient appropriate audit evidence to satisfy ourselves as to the appropriateness of the above carrying amounts in accordance with MFRS 139: Financial Instruments: Recognition and Measurement and whether any adjustments to these amounts were necessary,” EY said in its independent auditors’ report.
A year ago, EY gave a qualified opinion on FSBM’s audited statements for FY15 for the same debt.