REDtone auditors give ‘qualified opinion’ on group's financial statement

  • Business
  • Wednesday, 01 Oct 2014

PETALING JAYA: The independent auditors of REDTONE INTERNATIONAL BHD have expressed a qualified opinion for the group’s financial statements for the period ended May 31, 2014.

The basis for chartered accounting firm Crowe Horwath’s qualified opinion was that REDtone should have made an adjustment for impairment on overdue amounts from a third party.

In Note 17 of REDtone’s accounts, overdue amounts from a third party amounting to RM15.6mil and RM14.87mil of the group and the company respectively, were classified under “other receivables” in the financial statements.

Directors of the ACE-market listed company had opined that the amounts were recoverable, and therefore, did not make any impairment.

“However, as the amounts are long outstanding, we are of the opinion that an adjustment for impairment should be made,” said Crowe Horwath.

In its opinion, except for the basis for its qualified opinion, REDtone’s financial statements give a true and fair view of its financial position.

“We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion,” the auditors said.

It was recently reported that the telecommunication services provider intended to roll out its 4G mobile services.

It also planned to migrate to the Main Market as well as expand its managed value-added services to include tele-radiology services.

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