Auditor issues disclaimer of opinion over EMS's FY2016 financial statements
EMS Energy's auditors BDO have issued a disclaimer of opinion on the company's consolidated financial statements for FY2016 stemming from a lack of appropriate audit evidence.
The auditor flagged going concern doubts and completeness of liabilities, impairment of property, plant and equipment, impairment of available-for-sale financial assets, specifically investments in unquoted equity shares, and valuation of financial derivative liabilities.
In response to the audit report, EMS says the group's financial position will be "substantially improved" upon successful completion of its High Court-approved schemes of arrangement.
The company is also looking to raise funds through a placement or rights issue, and further liabilities will be cleared when subsidiary Koastal Industries is liquidated.
BDO highlighted that all bank facilities to the company have been withdrawn and that the company has no revenue-generating activities in Singapore as both its subsidiaries, Koastal Industries and EMS Energy Solutions, have ceased operations.
BDO's audit report showed the group incurred a loss of around S$120 million for the financial year ended Dec 31, 2016, rising from major customer contract terminations and letters of demands from creditors and borrowers.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
UBS weighs synthetic risk transfer amid capital boost proposals
Oil settles higher on supply concerns in the Mid-East, economic woes subdue gains
S-Reits falter as investors weigh possibility of zero rate cuts in 2024
CapitaLand Investment posts total revenue of S$650 million for Q1
Europe: Stoxx 600 logs best day in three months as banks shine
US: Stocks rally after strong tech results