2016.08 INNO-TECH HOLD

Company Name: Inno-Tech Holdings Limited
Stock Code: 08202
Year end: June 30, 2016

BASIS FOR QUALIFIED OPINION

Scope limitation-Opening balances, corresponding figures and comparative financial statements

The corresponding figures and comparative financial statements in the current year’s financial statements were derived from the financial statements for the year ended 30 June 2015 which contained a disclaimer of audit opinion, details of the qualifications were set out in the auditor’s report dated 28 January 2016. We have not been able to obtain sufficient appropriate audit evidence as to whether (i) the opening balances for the year ended 30 June 2016 were free from material misstatement; and (ii) the corresponding figures and comparative financial statements were properly recorded and accounted for, in compliance with the requirements of applicable Hong Kong Financial Reporting Standards.

There were no alternative audit procedures to satisfy ourselves as to whether the opening balances, corresponding figures and comparative financial statements were free from material misstatement. Any adjustments that might have been found to be necessary would have had a consequential impact on the net liabilities of the Group as at 30 June 2016, results of the Group for the year ended 30 June 2016 and the related disclosures thereof in the financial statements.

QUALIFIED OPINION ARISING FROM LIMITATION OF AUDIT SCOPE

In our opinion, except for the effects of the matters described in the basis for qualified opinion paragraph, the consolidated financial statements give a true and fair view of the financial position of the Group as at 30 June 2016 and of the Group’s financial performance and cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards and have been properly prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance.

EMPHASIS OF MATTER

We draw attention to note 3(b)(i) to the consolidated financial statements which indicates that the Group has net current liabilities of approximately HK$125,236,000 as at 30 June 2016. These conditions, along with other matters as set out in note 3(b)(i) to the consolidated financial statements, indicate the existence of a material uncertainty that may cast significant doubt about the Group’s ability to continue as a going concern.