Basis for disclaimer of opinion
- Opening balances and corresponding figures
Our audit opinion on the consolidated financial statements of the Group for the year ended 30 June 2015, which forms the basis for the corresponding figures presented in the current year’s consolidated financial statements, was disclaimed because of the significance of the possible effect of the limitations on the scope of our audit and the material uncertainty relating to the going concern basis, details of which are set out in our audit report dated 29 April 2016.
There were no satisfactory audit procedures to ascertain the existence, accuracy, presentation and completeness of certain opening balances and corresponding figures (as further detail explained in the following paragraphs) shown in the current year’s consolidated financial statements.
- Trade and other payables
No sufficient evidence has been provided to satisfy ourselves as to the carrying amount of the trade and other payables amounted to approximately RMB265,697,000 and RMB274,652,000 as at 30 June 2016 and 2015 respectively are fairly stated.
- Commitments and contingent liabilities
No sufficient evidence has been provided to satisfy ourselves as to the existence and completeness of the disclosures of commitments and contingent liabilities as at 30 June 2016 and 2015.
Any adjustments to the figures as described from points 1 to 3 above might have a significant consequential effect on the Group’s results and cash flows for the two years ended 30 June 2016 and 2015 and the financial positions of the Group as at 30 June 2016 and 2015, and the related disclosures thereof in the consolidated financial statements.
Material uncertainty relating to the going concern basis
The disclosures in note 2 to the consolidated financial statements indicates the Group incurred a loss of approximately RMB58,050,000 for the year ended 30 June 2016 and net current liabilities of approximately RMB131,472,000 in the consolidated statements of financial position of the Group as at 30 June 2016. These conditions indicate the existence of a material uncertainty which may cast significant doubt on the Group’s ability to continue as a going concern. In view of the extent of the uncertainty relating to the future working capital sufficiency of the Group, we disclaim our opinion in respect of the material uncertainty relating to the going concern basis.
Disclaimer of opinion
Because of the significance of the matters as described in the basis for disclaimer of opinion paragraphs and the material uncertainty relating to the going concern basis, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Accordingly, we do not express an opinion on the consolidated financial statements. In all other respects, in our opinion, the consolidated financial statements have been properly prepared in compliance with the Hong Kong Companies Ordinance.