Censof at odds with auditor on inclusion of impairment loss in FY16 accounts

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KUALA LUMPUR (July 29): The external auditor of Censof Holdings Bhd has expressed a qualified opinion on the financial solutions and software provider's accounts for the year ended March 31, 2016 (FY16), pertaining to a sum of RM6.7 million long owed by a government agency client.

For illustrative purposes, the RM6.7 million sum is equivalent to 4.06% of Censof's FY16 revenue of RM165.04 million.

In a filing with Bursa Malaysia today, Censof's external auditor Crowe Horwath Malaysia said while the directors think no impairment loss should be made from the amount due — as they said the sum is recoverable — Crowe Horwath was of the opinion that an adjustment for impairment loss should be made.

If Censof had done the adjustment, "the carrying value of the amount owing by contract customers would have been decreased by the same amount for the group," said the external auditor.

As such, the company's FY16 and retained profits in its shareholders' funds would have decreased by the same amount of this impairment loss, Crowe Horwath said.

The external auditor included an 'emphasis of matter' paragraph in the FY16 financial statement, pertaining to trade receivables and amount owing by contract customers.

Censof shares have been trading flat at 21.5 sen today as at 2:32pm, with 222,400 units changing hands. It has a market capitalisation of RM107.87 million.