Sample Disclosure – Auditors’ Report With Disclaimer Opinion (15 December 2010)

ABC SDN. BHD.

(Incorporated in Malaysia)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ABC SDN. BHD.

Report on the Financial Statements

We have audited the financial statements of ABC SDN. BHD., which comprise the balance sheets as at 30 September 2010 of the Group and of the Company, and the income statements, statements of changes in equity and cash flow statements of the Group and of the Company for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages X to XX.

Directors’ Responsibility for the Financial Statements

The directors of the Company are responsible for the preparation and fair presentation of these financial statements in accordance with Financial Reporting Standards and the Companies Act 1965 in Malaysia. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements.

Basis for Disclaimer of Opinion

1.    Effect of unresolved matters resulted in disclaimer of opinion expressed by the previous year’s auditors

The financial statements of the Group and of the Company for the previous year ended 30 September 2009 were audited by another auditors whose report dated 21 December 2009 expressed a disclaimer of opinion due to the following matters:-

a.    Insufficient audit evidence to satisfy themselves in relation to the transactions with the sub-contractors of the Company.

b.    Relevant information were not obtained in relation to the adequacy of the allowance for doubtful debts made on the amount due by the sub-contractors of the Company which comprised mainly interest free advance to these sub-contractors in the course of carrying out the relevant contract work granted to these sub-contractors by the Company, amounted to RM142,235,211.

c.    Insufficient audit evidence to satisfy themselves that the impairment loss made for plant and equipment held by the Company’s sub-contractors on behalf of the Company amounted to RM35,342,871 are adequate.

d.    Outstanding confirmation of balances and other alternative audit evidence including unreconciled differences on trade receivables with a total balance of RM10,982,456.

e.    Insufficient audit evidence and information in relation to the nature of payments made to certain suppliers amounted to RM2,387,965.

f.     Insufficient audit eveidence and information in relation to the carrying amount of borrowings shown on the balance sheet of RM125,000,000 as at 30 September 2009 and outstanding confirmation of balance on such borrrowings from the lenders.

g.    Outstanding confirmation of trade and other payables with a total amount of RM181,983,912 as at 30 September 2009 and this total amount was RM23,874,985 lesser than the total of trade and other payables subsidiary ledger. The difference of RM23,874,985 remained unreconciled.

h.    Other outstanding confirmation of balances, information and/or supporting documents in relation to other class of accounts which are considered by the auditors to be material sum or amounts, and have not been provided to the auditors for verification:

i.    Basis and supporting documents for the accruals sum of RM2,456,987.

ii.    Confirmation from solicitors on the impact and status of legal cases faced by the Company.

iii.    Information/supporting documents of staff costs amounted to RM23,876,515

iv.    Supporting document of sales and purchases amounted to RM87,616,324 and RM76,565,919 respectively.

v.    The basis of the fair value of an investment property amounted to RM135,000,000 determined by the directors and hence affecting the fair value reduction adjustment made of RM20,000,000 recognised in the income statement

There were no information and/or supporting documents provided to us to resolve the above matters and we are unable to carry out any other audit procedures to satisfy ourselves that the opening balances of the Company are fairly stated. As a result, we are unable to satisfy ourselves that the opening balances as at 1 October 2009 do not contain misstatements that may materially afftect the current year amounts reflected in the financial statements.

2.    Current year unresolved matters

In the course of carrying out our audit, we have attempted to obtain sufficient and appropriate audit evidence to satisfy ourselves that the following items reflected in the financial statemnets are faily stated, but failed:

a.    Bank balances amounted to RM590,871 and borrowings amounted to RM87,987. The relevant documents such as bank confirmation letters, bank facilities letter, loan agreements, bank statements and others could not be provided to us for verification.

b.    An amount of RM20,687,525 recorded in the revenue of the Company in which no supporting documents such as sales invoices, dispatch notes, bills of lading and others that could substantiate these sales except for the relevant bank-in-slips in which the directors represented that the money received by the Company represents revenue from sale of goods to overseas customers. According to the directors, the relevant sales documents have been misplaced by the Company’s personnel who has left the Company. There were no other information and/or supporting documents provided to us to resolve the above matters and we are unable to carry out any other audit procedures to satisfy ourselves that the proceeds received represent sales revenue of the Company.

3.    Going concern issue

The Group and the Company have a capital deficiency of RM362,071,837 (2009 – RM306,305,399) and RM300,734,790 (2009 – RM203,333,943) respectively as at 30 September 2010 as a result of losses sustained over the years. In addition, the current liabilities exceed the current assets. As mentioned in Note XX to the financial statements, the financial statements have been prepared on the accounting principles applicable to a going concern which contemplates the realisation of assets and the satisfaction of liabilities in the normal courses of business. Continuity as going concern is therefore, dependent on future profitable operations of the Group and of the Company and the availability of funds to meet the obligations as and when they fall due.

The evidence available to us to confirm the appropriateness of preparing the financial statements on the going concern basis was inadequate. The circumstances of which, together with the possible effect on the financial statements should this basis be inappropriate, are set out in Note XX to the financial statements. As a result, and in the absence of any alternative evidence available to us, we are unable to form an opinion as to whether the financial statements which have been prepared on the accounting principles applicable to a going concern, gives a true and fair view of the financial position of the Group and of the Company as at 30 September 2010, and of the results of the operations, the cash flows and changes in equity for the financial year ended on that date.

Disclaimer Opinion

Because of the matters described in the Basis for Disclaimer Opinion paragraphs above, we are unable to form an opinion as to the appropriateness of the financial statements which were prepared on going concern basis.

Report on Other Legal and Regulatory Requirements

In accordance with the requirements of the Companies Act, 1965 in Malaysia, we report that in our opinion:

a)       except for the matters as described in the Basis for Disclaimer Opinion paragraphs, the accounting and other records and the registers required by the Act to be kept by the Company have been properly kept in accordance with the provisions of the Act.

b)       we have considered the audited financial statements of all the subsidiaries of which we have not acted as auditors, which are indicated in Note XX to the financial statements.

c)       we are satisfied that the financial statements of the subsidiary companies that have been consolidated with Company’s financial statements are in the form and content appropriate and proper for the purposes of the preparation of the consolidated financial statements and we have received satisfactory information and explanations as required by us for those purposes.

Other Matters

This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

[ AF : 0012345 ] [ 123/01/13(J) ]
AUDITORS & ASSOCIATES AWANG BIN SALLEH
Chartered Accountants Chartered Accountant

Wonderland

Dated:

Sample Disclosure – Auditors’ Report With Disclaimer Opinion (28 September 2009)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ABC BERHAD (CO. NO. X-123456)

REPORT ON THE FINANCIAL STATEMENTS

We were engaged to audit the financial statements of ABC Berhad, which comprise the balance sheets as at day/month/year of the Group and of the Company, and the income statements, statements of changes in equity and cash flow statements of the Group and of the Company for the financial year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages XX to XX.

Directors’ Responsibility for the Financial Statements

The directors of the Company are responsible for the preparation and fair presentation of these financial statements in accordance with MASB Approved Accounting Standards in Malaysia for Entities Other than Private Entities and the Companies Act, 1965. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. Because of the matters described in the Basis for Disclaimer of Opinion paragraphs, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion.

Basis for Disclaimer of Opinion

As disclosed in Note X to the financial statements on Basis of Preparation, the Company has defaulted on the repayment of bank borrowings amounting to RMXXX,XXX,XXX which was due for payment on day/month/year and the solicitors representing the financier of the borrowings issued a notice of demand to the Company for full settlement of the outstanding borrowings and interests due as at day/month/year. At the date of this report, the Receiver and Manager appointed is  assessing a number of proposals in respect of the borrowings but no decision has been made. We could not obtain sufficient appropriate evidence on the following:

(a)           the appropriateness of the use of the going concern assumption in the preparation of the financial statements. As disclosed in Note X to the financial statements. The default of the borrowings and the relevant events occurred subsequently together with the lack of clear evidence to support the ability of the Group and of the Company to meet the repayment of the borrowings and the interest thereon have casted significant doubt on the Group and the Company’s ability to continue in operations and therefore the Group and the Company may be unable to realise its assets and discharge its liabilities in the normal course of business;

(b)           the recoverability of the carrying value of the property, plant and equipment of the Group amounting to RMXXX,XXX,XXX, as disclosed in Note X to the financial statements; and

(c)           the Company’s ability to recover the entire carrying value of its investments in subsidiaries and advances to subsidiaries. As at day/month/year.

Disclaimer of opinion

Because of the significance of the matters referred to in the Basis for Disclaimer of Opinion above, we do not express an opinion on the financial statements.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report that, in our opinion:

(a)           the accounting and other records and the registers required by the Act to be kept by the Company and its subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of the Act.

(b)           we have considered the financial statements and the auditors’ report of the subsidiary of which we have not acted as auditors,

(c)           we have not been able to satisfy ourselves that the financial statements of the subsidiaries that have been consolidated with the Company’s financial statements are in form and content appropriate and proper for the purposes of the preparation of the financial statements of the Group due to the matters referred to in Note X to the financial statements. We have not received satisfactory information and explanations required by us for those purposes.

(d)           the audit reports on the financial statements of all the subsidiaries were qualified in the manner as disclosed in Note X to the financial statements.

OTHER MATTERS

This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

 

DEF & Co.

 

(No. AF: 1234)

Chartered Accountants

 

 

(No. 1234/1/10 (J))

Chartered Accountant

Wonderland

Day/month/year

Sample Disclosure – Auditors’ Report With Disclaimer Of Opinion (15 September 2009)

Independent auditors’ report to the members of ABC Bhd. (Incorporated in Malaysia)

Report on the Financial Statements

We were engaged to audit the financial statements of ABC Bhd., which comprise the balance sheets as at (date/month/year) of the Group and of the Company, and the income statements, statements of changes in equity and cash flow statements of the Group and of the Company for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages XX to XX.

Directors’ responsibility for the financial statements

The directors of the Company are responsible for the preparation and fair presentation of these financial statements in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. Because of the matters described in the Basis for disclaimer of opinion paragraphs, we were not able to provide a basis for an audit opinion.

 

Basis for disclaimer of opinion:

1. As disclosed in Note XX to the financial statements, the proposed disposal of a subsidiary has not been completed to date of this report. The directors made representation that the disposal price has been revised downward from RMXX,XXX,XXX to RMXX,XXX,XXX. The directors assumed that the revised disposal price also represents the fair value of the disposal group of the assets of this subsidiary company and hence resulted in the loss on re-measurement of assets of the disposal group amounted to RMX,XXX,XXX which has been recognized in the income statement. However, we are unable to obtain sufficient appropriate audit evidence to satisfy ourselves as to the revised disposal  price, the faire value of the disposal group of assets, the loss on re-measurement of assets of disposal group, nor the carrying amount of the re-measured assets.

2. The Group and the Company have posted a capital deficiency of RMXXX,XXX,XXX and RMXXX,XXX,XXX respectively as at 30 June 2009. However, the current year financial statements have been prepared based on the assumption that the Group and the Company continue to operated as a going concern which contemplates the realization of assets and meeting the obligations arising therefrom the liabilities of the Group and of the Company in the normal course of business. In addition, the Group and the Company have defaulted the payment of certain loans obtained and the negotiation with the relevant financial institutions on restructuring of the loans is in progress as disclosed in Note XX to the financial statements. These factors have raise concerns and significant doubt as to the ability of the Group and the Company to be able to continue as a going concern.

The financial statements do not include any adjustments relating to the amounts and classification of assets and liabilities that might ne necessary should the Group and the Company unable to continue as a going concern.

Opinion

Because of the significance of the matters as discussed in the Basis for disclaimer of opinion paragraphs, we do not express an opinion on the financial statements of the Group and the Company for the financial year ended (date/month/year).

 

Report on other legal and regulatory requirements

In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following:

(a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company and its subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of the Act, except in respect of the matters described in the Basis for disclaimer above.

(b) We have considered the financial statements and the auditors’ reports of all the subsidiaries of which we have not acted as auditors, which are indicated in Note XX to the financial statements.

(c) We are satisfied that the accounts of the subsidiaries that have been consolidated with the financial statements of the Company are in form and content appropriate and proper for the purposes of the preparation of the consolidated financial statements and we have received satisfactory information and explanations required by us for those purposes, except in respect of the matters described in the Basis for disclaimer above.

(d) The auditors’ reports on the financial statements of the subsidiaries were not subject to any qualification and did not include any comment required to be made under Section 174(3) of the Act, except as disclosed in Note XX to the financial statements.

 

Other matters

This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act, 1965 in Malaysia and for no other purpose.  We do not assume responsibility to any other person for the content of this report.

Sample Disclosure – Auditors’ Report With Disclaimer Opinion (19 may 2009)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

ABC BERHAD

(Incorporated in Malaysia)

Company No: XXXXX-X

Report on the Financial Statements

We have audited the financial statements of ABC Berhad, which comprise the balance sheets of the Group and of the Company as at day/moth/year, the income statements, statements of changes in equity and cash flow statements of the Group and of the Company for the financial year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages XX to XX.

Directors’ Responsibilities for the Financial Statements

The directors of the Company are responsible for the preparation and fair presentation of these financial statements in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibilities

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia, except that the scope of our work has been limited as explained below. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. However, the evidence available to us was limited as discussed below. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements.

Basis of Disclaimer of Opinion

(a)   Fundamental uncertainty relating to the going concern basis

We draw attention to Note X to the financial statements, which disclose that the financial statements of the Group and of the Company have been prepared on a going concern basis, notwithstanding that the Group and the Company had incurred a net loss of RMXX,XXX,XXX and RMXX,XXX,XXX respectively for the financial year ended day/month/year. At this date, the Group and the Company had capital deficiency of RMXXX,XXX,XXX and RMXX,XXX,XXX respectively. The current liabilities of the Group and of the Company exceeded the current assets by RMXXX,XXX,XXX and RMXX,XXX,XXX respectively. The Group has also defaulted in payment on its borrowings whereby certain financial institutions have initiated litigation actions against the Group and the Company as disclosed in Note X to the financial statements. The directors are in the midst of arranging to regularise the financial position of the Group and of the Company including discussion with financial institutions for resolving the matters relating to default of borrowings repayment out of court and considering various options in terms of “financial rescue plan” available and/or offered by interested parties before announcing the selected arrangement. However, as of the date of this report, we are unable to evaluate the outcome of such plan/arrangement and its impact on the business operations as well as the ability of the Group and the Company to continue as a going concern.

(b)  Limitation of Audit Scope – Audit confirmations

The confirmations from certain receivables, payables, financial institutions and solicitors to ensure the existence and completeness of the balances and the status of on-going litigations at financial year end are still outstanding as at the date of our report and therefore we were unable to complete these audit procedures. There were no other alternative procedures whereby sufficient evidence and explanation to ensure the existence and completeness of these balances. Any adjustments found to be necessary to the amounts would affect the related disclosures thereof in the financial statements.

Disclaimer of Opinion

Because of the significance of the matters discussed in the preceding paragraphs, we do not express an opinion whether the financial statements of the Group and of the Company have been prepared in accordance to the Companies Act, 1965 and Financial Reporting Standards in Malaysia so as to give a true and fair view of:-

(i)    the financial position of the Group and of the Company as at day/month/year and of its financial performance and cash flows for the financial year then ended; and

(ii)   the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial statements of the Group and of the Company.

Report on Other Legal and Regulatory Requirements

In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following:-

a)    In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company and its subsidiary companies of which we have acted as auditors have been properly kept in accordance with the provisions of the Act.

b)    We have considered the financial statements and the auditors’ reports of all the subsidiary companies of which we have not acted as auditors, as disclosed in Note XX to the financial statements.

c)    We are satisfied ourselves that the financial statements of the subsidiary companies that have been consolidated with the Company’s financial statements are in form and content appropriate and proper for the purposes of the preparation of the consolidated financial statements and we have received satisfactory information and explanations required by us for those purposes.

d)    Except for the auditors’ reports on the financial statements of XXX Sdn. Bhd. and XXX Sdn. Bhd. which were not subject to any qualification and did not include any comment made under Section 174 (3) of the Act, the auditors’ reports on the financial statements of other subsidiary companies were qualified as disclosed in Note XX to the financial statements.

 

Other Matters

This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

 

 

[Name of firm]                                                             [Name of partner]

AF: 0001                                                                      No. 1001/01/2010 

Chartered Accountants                                               Chartered Accountant

Wonderland, Malaysia                                                 

19 May 2009

Sample Disclosure – Auditors’ Report with Disclaimer Opinion (25 November 2008)

Independent auditors’ report to the members of ABC Bhd. (Incorporated in Malaysia)

Report on the Financial Statements

We were engaged to audit the financial statements of ABC Bhd., which comprise the balance sheets as at (date/month/year) of the Group and of the Company, and the income statements, statements of changes in equity and cash flow statements of the Group and of the Company for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages XX to XX.

Directors’ responsibility for the financial statements

The directors of the Company are responsible for the preparation and fair presentation of these financial statements in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. Because of the matters described in the Basis for disclaimer of opinion paragraphs, we were not able to provide a basis for an audit opinion.

 

Basis for disclaimer of opinion:

1. As disclosed in Note XX to the financial statements, there were total payments by the Group of RMXX million on behalf of and to various parties, including related parties in settlement of total receipts of RMXX million from various parties, including related parties during the financial year and RMXX million due to certain of these parties as at (date/month/year).  Certain of these payments made by the Group resulted in net amounts due from various parties ranging from RMXX to RMXX million on various dates between (date/month/year) and (date/month/year).  

The total payments and receipts referred to in the preceding paragraph included total payments by the Company of RMXX million on behalf of and to various parties, including related parties in settlement of total receipts of RMXX million from these various parties including related parties during the financial period and RMXX million due to certain of these parties as at (date/month/year).  Certain of these payments made by the Company resulted in an amount due from one of the various parties amounting to RMXX million on (date/month/year).  

During the financial year ended (date/month/year), there were no gains or losses recorded in the income statements of the Group and of the Company arising from the above transactions and neither were there any amounts owing to or from any parties as at (date/month/year).

2. In the previous financial year, one of the Company’s wholly-owned subsidiaries, DEF Sdn. Bhd. (“DEF”) entered into a business arrangement with a company (“Financial Promoter”) to inter alia, assist in the winding down of the operations of DEF and various other activities on the terms and conditions as further disclosed in Notes XX and XX to the financial statements. However, the details of the above arrangements were only provided to us in (month/year) arising from our enquiries on certain receipts and payments noted in paragraph (1) above. We were also informed that the said business arrangement had no effects on the financial statements of the Group. The said arrangement was rescinded in (month/year).

There was no evidence that approvals were obtained from the Board of Directors prior to entering into the above transactions.

As at the date of this report, we are unable to satisfy ourselves as to the intent, purpose, nature and extent of the above transactions. Accordingly, we are unable to determine as to whether these transactions have any effects on the financial statements of the Group or the Company for the financial year ended (date/month/year).

Opinion

Because of the significance of the matters as discussed in the Basis for disclaimer of opinion paragraphs, we do not express an opinion on the financial statements of the Group and the Company for the financial year ended (date/month/year).

 

Report on other legal and regulatory requirements

In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following:

(a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company and its subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of the Act, except in respect of the matters described in the Basis for disclaimer above.

(b) We have considered the financial statements and the auditors’ reports of all the subsidiaries of which we have not acted as auditors, which are indicated in Note XX to the financial statements.

(c) We are satisfied that the accounts of the subsidiaries that have been consolidated with the financial statements of the Company are in form and content appropriate and proper for the purposes of the preparation of the consolidated financial statements and we have received satisfactory information and explanations required by us for those purposes, except in respect of the matters described in the Basis for disclaimer above.

(d) The auditors’ reports on the financial statements of the subsidiaries were not subject to any qualification and did not include any comment required to be made under Section 174(3) of the Act, except as disclosed in Note XX to the financial statements.

 

Other matters

This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act, 1965 in Malaysia and for no other purpose.  We do not assume responsibility to any other person for the content of this report.