Falmac's auditors say cannot provide opinion on balance sheet
By Mok Fei Fei, Channel NewsAsia | Posted: 26 November 2009 1254 hrs

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SINGAPORE: Independent auditors of Singapore-listed manufacturer of circular knitting machines Falmac said they cannot give an opinion on the firm's balance sheet.

The auditors, LTC, said they were not able to obtain sufficient and appropriate audit evidence to provide an opinion.

It said for the financial year ended on 31 December 2008, there were financial statements of subsidiaries which are not audited or audited by others.

LTC has not been able to satisfy itself whether such documents are appropriate for the purpose of the preparation of the consolidated financial statements.

Moreover, Falmac is embroiled in a legal battle with former director and CEO, Charlie Cheng.

Mr Cheng is making a claim for his salary and severance compensation.

Falmac said the High Court had granted the firm an interim injunction to restrain Mr Cheng from commencing any winding up proceedings against it.

- CNA/sc