Novo's auditor highlights qualified opinion, emphasis of matters on financial statements

STEEL company Novo Group on Tuesday night said its independent auditor, Baker Tilly TFW LLP, has highlighted a qualified opinion and an emphasis of matters in its report on the group's financial statements, for the financial year ended April 30, 2016.

The basis for the qualified opinion touches on the group's property, plant, and equipment, and its investments in subsidiaries and amounts due from subsidiaries.

Said Baker Tilly in its report: "The group's property, plant and equipment as at April 30, 2016 amounted to US$63,154,213 (2015: US$73,131,079). Management determined that no impairment is required on the group's property, plant and equipment as their recoverable amounts exceed the net carrying values as at April 30, 2016.

"Based on the information available to us, we are unable to obtain sufficient appropriate audit evidence to satisfy ourselves on the reasonableness of the key assumptions and inputs used in the determination of the recoverable amounts of the group's property, plant and equipment. Consequently, we are unable to determine whether any adjustments in respect of the net carrying values of the group's property, plant and equipment as at April 30, 2016 are necessary."