Latest Newsletter: MSWG Weekly Newsletter 15 June 2018 (English)
MSWG’S QUICK TAKE ON-ONGOING CORPORATE DEVELOPMENTS
MULTI SPORTS HOLDINGS LTD (“MSPORTS”)
The Board of Directors of MSPORTS announced that Messrs. RT LLP, the company’s External Auditors, have expressed an audit ‘disclaimer of opinion’ in the Company’s latest Audited Financial Statements for the financial year ended 31 December 2017.
One main reason for the audit ‘disclaimer of opinion’ is that the Company’s current liabilities exceed its current assets substantially. For the FYE 2017, current liabilities were RMB3.445 million while current assets were RMB26,000. The Company was not able to ascertain whether the Company could continue as a ‘going concern’ since the Company had minimal assets which may not be able to sustain it as a ‘going concern’ for the next 12 months from the date of publication of the financial statements.
In addition, the Auditors stated that they were unable to determine whether the opening balances for the subsidiaries in People Republic of China (PRC) as at 31 December 2016 are fairly stated. These matters remain unresolved since the preceding financial year and this too formed the basis for the ‘disclaimer of opinion’ on the financial statements for the financial year ended 31 December 2017.