- 2008.09 TRADELINK
Company Name: Tradelink Electronic Commerce LimitedStock Code: 536Year end: June 30, 2008
Basis for qualified conclusion
Included in the interest in associates in the condensed balance sheet as at 30 June 2008 is the group’s investment in an associate, Digital Trade and Transportation Network Limited (“DTTNCo”), amounting to HK$31.7 million. As explained in note 9 to the interim financial report, there are indications of possible impairment in the carrying value of DTTNCo’s long lived assets. However, for reasons explained in note 9, management has not re-estimated the recoverable amount of these assets as at 30 June 2008 and therefore has not been able to comply with the requirements of Hong Kong Accounting Standard 36 (“HKAS 36”), Impairment of Assets, issued by the Hong Kong Institute of Certified Public Accountants. As the group accounts for its interests in DTTNCo under the equity method of accounting, any impairment loss identified in respect of DTTNCo’s long lived assets would have reduced the carrying value of the group’s interest in DTTNCo and the group’s profit for the period.
Except for the effect of the matter described in the preceding paragraph, based on our review, nothing has come to our attention that causes us to believe that the interim financial report as at 30 June 2008 is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 “Interim financial reporting”.”