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KLW adopts external auditors' proposed changes; no impact on fiscal 2018 results
CATALIST-LISTED doormaker KLW Holdings has reclassified certain items in its financial statements for the financial year ended March 31, 2018, after adopting proposed changes by its external auditors. The reclassification has been reflected in the company's audited financial statements for FY2018, which will be released to shareholders in due course.
This included the reclassification of land held for development from a non-current asset of KLW to a current asset. Consequently, the company's development properties have increased to S$41.8 million from S$13.4 million. The land held for development was reclassified as a current asset "for a better presentation to reflect the intention of the land acquired for property development activities", KLW said.
Other revisions include non-current assets of the group's subsidiary increasing to S$53.5 million from S$32.2 million due to the reclassification of a loan that has been treated as a net investment in the subsidiary.
The company added that after the reclassifications, there is no impact to the profit and loss of the group as well as its net assets.
Separately, KLW's independent auditor - Baker Tilly TFW LLP - has included in its independent auditor’s report dated July 5, an emphasis of matters in relation to KLW's audited financial statements for FY2018.
These concern the uncertainty in relation to ongoing legal claims and counterclaims, and an ongoing investigation by the Commercial Affairs Department of the Singapore Police Force involving the company.
Baker Tilly said that KLW's directors are of the view that the investigation should not have a material financial impact on the accompanying financial statements for FY2018.
In KLW's filing with the Singapore Exchange on Friday afternoon, the company said that the opinion of the auditors remain unqualified. However, KLW did not say why they were unqualified.
KLW shares were trading flat at S$0.004 as at 2.27pm.