Nutryfarm auditors issue disclaimer of opinion on FY2023 accounts amid deep uncertainties over records, litigation and going concern
Summary:
-
Nutryfarm International’s independent auditor Nexia Singapore PAC has issued a disclaimer of opinion on the Group’s audited financial statements for FY2023, saying it could not obtain sufficient appropriate evidence to form an opinion.
-
The disclaimer stems from unresolved issues in prior‑year opening balances, lack of access to accounting records and supporting documents since the company was placed under judicial management in June 2022, and inability to complete normal audit procedures and subsequent‑events review.
-
The auditors flag multiple unresolved matters, including an SGX‑mandated independent investigation into pre‑2019 transactions and potential listing rule breaches, possible customer compensation claims where no provision has been booked, and significant doubt around the Group’s and Company’s ability to continue as going concerns.
-
As at 30 September 2023, the Group’s total and current liabilities exceeded total and current assets by about HK$204 million, while the Company’s deficits were about HK$252 million, with ongoing restructuring, new loans and share charges over up to 100% of AI Nova shares underscoring reliance on successful turnaround and capital raising.
-
The judicial manager explicitly states being unable to opine on the accuracy and completeness of the FY2023 financial statements or on the Group’s and Company’s ability to continue as going concerns, and warns investors to exercise extreme caution given the prolonged trading suspension and unresolved restructuring and regulatory processes.