Cybertowers’ external auditor witholds opinion

PETALING JAYA (Jan 3, 2014): Cybertowers Bhd's external auditor Messrs Siew Boon Yeong & Associates has questioned the group's ability to continue as a going concern by not expressing an opinion on its financial statements.
Its auditor said in a filing with Bursa Malaysia yesterday that were unable to obtain sufficient appropriate audit evidences to provide a basis for an audit opinion.
Siew Boon Yeong & Associates said the company's directors' were unable to provide a detailed assessment on the group's and company's abilities to continue as going concerns and they were not furnished with any management plans to deal with its losses as well as high liabilities.
"The group and company incurred losses of RM7.65 million and RM3.70 million respectively for the year ended Aug 31, 2013 and, as of that date, the group's current liabilities exceeded their current assets by RM4.91 million.
These conditions indicate the existence of a material uncertainty that may cast significant doubt about the group's and the company's abilities to continue as going concerns. The going concern basis of preparing the financial statements of the group and of the company as stated in Note 2 to the financial statements may be inappropriate," the auditor said.
It added that should the going concern basis of preparing the financial statement be no longer appropriate, adjustments would have to be made to reduce the value of all assets to their estimated realisable values, and to provide further estimated liabilities that may arise, and to reclassify all non-current assets and non-current liabilities as current assets and current liabilities.
Siew Boon Yeong also said it was unable verify the existence, valuation and condition of 755 units of computers said to have been installed at an independent co-location service provider's hosting facility located in New Jersey the US.
The computer servers as at Aug 31, 2013, were valued at RM4.4 million in the group's property, plant and equipment.