Axington's independent auditor puts disclaimer of opinion on FY2021 statements

INDEPENDENT auditor Foo Kon Tan has included a disclaimer of opinion over scandal-hit Axington : 42U 0%’s financial statements for the 12 months to Dec 31, 2021.

In a report released late on Thursday (May 5) night, the auditor said it was unable to determine whether certain opening balances as at Jan 1, 2021 were fairly stated, among other issues.

Citing the carry-forward effects on group financial performance and cash flows, as well as the closing balances of assets and liabilities, the auditor said it could not determine whether any adjustments to Catalist-listed Axington’s financial statements for FY2021 might be needed.

Foo Kon Tan also noted that an independent review earlier commissioned by Axington, which covers the nature and circumstances of unpaid placement shares, is still ongoing.

The firm had also issued a disclaimer of opinion on statements for the year to Dec 31, 2020.

In response, the board of Axington said in a bourse statement that the carry-forward effects “will likely be resolved” in the financial year to Dec 31, 2022, and added that the independent review is expected to be completed by the end of next month.

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“Further announcements will be made by the company to update shareholders on any material developments in due course,” the board added.

Separately, Axington announced that it will hold its annual general meeting electronically on May 27, 2022. The shareholder gathering will be followed by an extraordinary general meeting to vote on matters such as the proposed reduction of share capital by up to S$11.9 million.

Axington, which was formerly a professional-services business known as Axcelasia, became a cash company under new ownership in 2021. It now has until Sep 30, 2022 to meet the requirements for a new listing and retain its status on the Singapore Exchange’s junior board.

Trading was suspended in mid-2020, amid public scrutiny of its controlling shareholders.