Malaysia’s Lion Corp headed by Parkson’s Tan Sri William Cheng now a Practice Note 17 company and auditors had emphasised on the company and its subsidiaries’ ability to continue as a going concern
Updated: Friday October 25, 2013 MYT 7:52:13 PM
Lion Corp now a Practice Note 17 company
KUALA LUMPUR: Lion Corporation Bhd has announced that it is a Practice Note 17 (PN17) company as it is an affected listed issuer. Lion Corp said on Friday its auditors had emphasised on the company and its subsidiaries’ ability to continue as a going concern in the audited consolidated financial statements for the financial year ended June 30, 2013. Its shareholders’ equity on a consolidated basis as at June 30, 2013 was less than 50% of the issued and paid-up capital. The company has 12 months to submit a regularisation plan to the Securities Commission if the plan will result in a significant change in the business direction or policy of the company. It also had to announce within three months on whether the regularisation plan would result in a significant change in its business direction or policy. If it fails to regularise its condition, it will announce the dates of the suspension and de-listing of its listed securities immediately upon notification of suspension and de-listing by Bursa Securities. Lion Corp said it was looking into formulating a plan to regularise its financial condition.
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is it a qualified opinion or unqualified opinion? thank you
In addition to the emphasis of matter in its going concern status, the auditors have expressed qualified opinion on two matters: (1) deferred tax assets and (2) related party transaction in its offtake purchase of iron from Lion DRI.
i) As disclosed in Note 20 to the financial statements, the Group has recognised deferred tax assets of RM369
million as at the reporting date. We are unable to obtain sufficient and appropriate audit evidence in relation to
the reasonableness of the assumptions used to assess the Group’s future profitability in order to satisfy ourselves
on the quantum and extent of future taxable profit that will be available against which the temporary differences,
unused tax losses and unabsorbed capital allowances can be utilised.
ii) We are unable to obtain sufficient and appropriate audit evidence in relation to the reasonableness of the
assumptions used to assess the Group’s future profitability in order to satisfy ourselves on the quantum of the
provision for onerous contract to be recognised in accordance with FRS 137 Provisions, Contingent Liabilities
and Contingent Assets arising from Offtake Agreement with its related company, Lion DRI Sdn Bhd as disclosed
in Note 37(v) to the financial statements.
Is that mean the annual report is qualified opinion but what about the news? have they done something while preparing the regularization plan except keep extending the submission date? what is the latest new about they are escaping the PN17?