- 2007.08 SIMSEN INT’L
Company Name: Simsen International Corporation LimitedStock Code: 993Year end: April 30, 2006
Basis for qualified opinion
Due to the absence of adequate effective controls and a system malfunction identified in a division of Lee Fung Hong (Cheung’s) Bullion Limited (“Cheung’s Bullion”), a subsidiary of the Group, during the year ended 30 April 2007, we were unable to ascertain the completeness and appropriate classification of the bullion transactions that occurred during the year. In particular, Cheung’s Bullion entered into certain transactions which resulted in a net trading loss of HK$23,736,000 and a net fair value gain of HK$694,000 for its gold bullion operations for the year ended 30 April 2007, and accounts receivable and accounts payable of HK$149,000 and HK$559,000, respectively, as at 30 April 2007. We were unable to obtain sufficient reliable evidence to satisfy ourselves as to the completeness and the appropriate classification and disclosure of these amounts as included in the consolidated balance sheet as at 30 April 2007 and the consolidated income statement for the year then ended. Cheung’s Bullion recorded net trading loss of HK$2,753,000 and net fair value loss of HK$3,057,000 for the year ended 30 April 2007 and accounts receivable and accounts payable of HK$511,000 and HK$6,818,000, respectively as at 30 April 2007.
Any adjustments found to be necessary in respect of the matters set out above would have a consequential impact on the Group’s profit for the year ended 30 April 2007, the Group’s net assets position as at 30 April 2007 and the classification and related disclosures thereof in the financial statements.
Qualified opinion arising from limitation of audit scope
In our opinion, except for the effects of any adjustments, if any, as might have been determined to be necessary had we been able to satisfy ourselves as to the revenue from the net trading loss and the net fair value gain on bullion transactions for the year, and the related receivables and payables as at 30 April 2007, the financial statements give a true and fair view of the state of affairs of the Company and of the Group as at 30 April 2007 and of the Group’s profit and cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards and have been properly prepared in accordance with the disclosure requirements of the Hong Kong Companies Ordinance.