Thursday, 26 March 2009

Teledata auditor raises issues of concern

Teledata’s ability to continue as a going concern may be in doubt, according to KPMG, its auditors.

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Guanyu said...

Teledata auditor raises issues of concern

By CONRAD TAN

Teledata’s ability to continue as a going concern may be in doubt, according to KPMG, its auditors.

Without qualifying its opinion of the group’s accounts for 2008, KPMG said that the group’s ongoing losses and cash outflows from operations, as well as a $5.3 million commitment for an acquisition for which Teledata has not arranged funding, ‘cast significant doubts that the group and the company will be able to remain a going concern’.

Still, ‘the directors are confident that the group and the company will be able to generate sufficient cash flows from its operations in the next 12 months to meet its operational needs and to obtain funding to finance its acquisition’.

But KPMG warned that these assumptions are ‘premised on future events and market conditions, the outcome of which is inherently uncertain’.