SINGAPORE - The independent auditor of KLW Holdings has included an emphasis of matters in its report on the door-maker's full year results ended March 31, 2019. However, the auditor's opinion on the financial statements remains unqualified.
Auditor Baker Tilly TFW in its emphasis of matters drew attention to the firm's note in its financial statements describing uncertainty regarding ongoing legal claims and counterclaims, as well as an ongoing investigation into the company by the Commercial Affairs Department (CAD) of Singapore.
The Catalist-listed firm's directors stated in the note that they are of the view that there are no liabilities required to be recognised in the fiscal 2019 statements based on legal advice obtained on the ongoing legal battle.
Similarly, they are of the view that the CAD investigation should not have material financial impact on the financial statements for fiscal 2019.
In the last reported news on a police investigation, KLW announced in November 2015 that it was under investigation by the CAD for possible offence(s) under the Securities and Futures Act.
KLW was in the news earlier this year over a claim of $7.8 million from investor Michael Chan Ewe Teik and his company Straitsworld Advisor for legal costs and the commitment fees paid under an unauthorised term sheet for a property development project in Zhangye Gansu, China.
The company's shares closed flat at 0.4 cents on Friday.