No audit qualification on cash and bank balances: China Sky

NOTHING has come to the attention of China Sky Chemical Fibre's external auditor to cause it to believe that its cash and bank balances are not true and fair.

In its response to queries from the Singapore Exchange late on Thursday night, the firm said that it has clarified with RT LLP on whether an additional audit procedure relating to its cash and bank balances amounted to a qualification or an emphasis of matter on this.

The auditor's reply was that what they have written "does not constitute a qualification or an emphasis of matter under the International Standards on Auditing".

"RT LLP has mentioned that based on their audit procedures performed and the bank confirmations obtained, nothing has come to their attention to believe that the cash and bank balances are not true and fair," said China Sky.

As of December 31, 2014, China Sky had 594.3 million yuan (S$130.6 million) of cash and cash equivalents, according to its audited financial statements released on Aug 15.