You are here

TT International's independent auditors warn of group's ability to continue as going concern

TT International's independent auditors announced on Friday night that the existence of material uncertainties may cast significant doubt about the group's ability to continue as a going concern.

KPMG was engaged to audit the financial statements of TT International and its subsidiaries for the financial year ended March 31, 2018.

For one, the consumer electronics retailer incurred a net loss of S$207.8 million for the year ended March 31 2018, compared to a loss of S$90.99 million in 2017. As at March 31 last year, the group's total liabilities have exceeded its total assets by S$347.71 million.

With the company placed under a scheme of arrangement, KPMG said that the company's ability to continue as a going concern is dependent on the outcome of various factors, including the creditor standstill, the successful implementation of the new scheme, and the group's ability to secure financing.

Market voices on:

In addition, a significant subsidiary in Singapore had defaulted on its debt repayment obligation, while the termination of the Warehouse Retail Scheme, the subsequent appointment of receivers and managers over assets of the subsidiary and the winding-up application by a vendor in relation to the subsidiary have severely affected the subsidiary and certain entities within the group, said KPMG.

Also, a significant subsidiary in Indonesia was in breach of certain financial loan covenants, in which a creditor applied to the commercial court in Indonesia for a voluntary suspension of debt repayment obligations which was granted by the Indonesian court on Aug 16, 2018.

KPMG added that TT International could not provide sufficient information for it to complete its audit. The company also did not appoint an auditor for the audit of the financial statements of a significant Indonesian subsidiary for the financial year ended March 31, 2018.

As such, the auditor was not able to determine whether any adjustments might be necessary to the amounts and disclosures shown in the financial statements. Due to the lack of sufficient audit evidence, KPMG said that it does not express an opinion on the consolidated financial statements of the group or the balance sheet of the company.

Trading in the company's shares has been voluntarily suspended since Aug 4, 2017.