THE auditor of Annica Holdings has qualified its opinion on the company's 2018 financial statements with regard to the recoverability of S$1.6 million due from the disposal of a business unit.
Auditor Baker Tilly, in its report, explained that the receivable was the amount outstanding from Annica's sale of GPE Power Systems Sdn Bhd. The outstanding balance is secured by a charge over shares of a private limited company and the personal guarantee of a related party of the purchaser. "We are unable to obtain sufficient appropriate audit evidence with respect to the amounts of cash flows that can be received by the group and the company from the shares pledged and the personal guarantee. Accordingly, we are not able to obtain sufficient appropriate audit evidence to satisfy ourselves with respect to the expected credit loss of this receivable," the auditor said.
Except for this matter, Baker Tilly said it found the rest of Catalist-listed Annica's audited financial statements to be true and fair.