Vibrant Group auditor issues disclaimer of opinion for FY2019
Singapore
THE independent auditor for logistics player Vibrant Group has issued a disclaimer of opinion on the company's financial statements for FY2019. The reason, KPMG explained, is that it had not been able to obtain sufficient and appropriate audit evidence to provide an opinion on these statements.
Among other things, KPMG flagged irregularities and discrepancies relating to certain invoices and receipts during its audit of Blackgold Group for the financial year ended April 30, 2018. Blackgold is a Chinese coal miner owned by Vibrant.
According to a bourse filing by KPMG on Thursday, Blackgold's accounting records were destroyed in a fire in August 2018. In addition, in a report by the company's investigating auditors, KPMG noted that there were "multiple potential material misstatements" in Blackgold's financial position as at its acquisition in 2017, and in the unit's financial results for the period up to April 30, 2018. Accordingly, KPMG said it was not able to complete its audit procedures, as it was unable to obtain sufficient audit evidence over Blackgold's account balances and transactions.
Moreover, Vibrant's management has not consolidated the balances and transactions relating to Blackgold in the group's consolidated financial statements for FY2018 and FY2019, KPMG said. Thus, the auditor is unable to determine the extent of adjustments required for the group's consolidated financial statements.
In a separate filing on Thursday, Vibrant highlighted "material differences" between the group's audited and unaudited financial statements for FY2019. Figures from the group's audited financial statements show that full-year net profit came in at S$7.7 million, up from S$5.6 million recorded in its unaudited statements; a difference of about S$2.1 million, or 37 per cent.
Share of profit from its associates net of tax, also surged to S$11.1 million in its audited financial statements, from just S$270,000 in its unaudited statements, mainly due to fair value gain on an investment property, Vibrant said.
Meanwhile, income tax expense came in higher at S$8.3 million in its audited financial statements, versus S$6 million from its unaudited statements. The company attributed the increased expenses to "deferred tax liabilities from the temporary differences recognised by subsidiaries".
It was previously reported that Blackgold appeared to have falsified accounts and grossly inflated sales figures since the day it was acquired, causing Vibrant to report false financials in a possible breach of Singapore listing rules. Blackgold's management may also have recorded fictitious mining fees from subcontractors prior to the acquisition by Vibrant, suggesting that the false accounts date back to the time when it was still listed on the Australian Securities Exchange.
Vibrant shares closed at 15.5 Singapore cents on Thursday, up half a cent.
