'Qualified' opinion on Magnus Energy's accounts

Singapore

LEGAL wrangling over the ownership of a subsidiary has made it difficult for the auditors of Magnus Energy to determine the accuracy of certain parts of its financial statements.

This has led auditing firm Moore Stephens to give a "qualified" opinion on Magnus Energy's accounts for a second year, though it adds that the rest of the group's financial statements and balance sheets for the financial year ended June 30, 2014, are properly drawn up.

The oil and gas equipment distribution and coal mining group holds coal concession rights through a subsidiary - PT Batubara Selaras Sapta (PT BSS) - that is currently the subject of a legal battle.

The Indonesian Ministry of Law and Human Rights had in 2008 told Magnus that another party was also registered as the legal owners of PT BSS. In November 2009, the Supreme Court of Indonesia upheld an earlier judgement by the High Court in not suspending the registration of the other party as the legal owner. Subsequently, the group was directed from submitting an application for a judicial review from the Supreme Court to a district court, which dismissed the lawsuit on the grounds that several individuals or p…