VIBRANT GROUP LIMITED
Company Registration Number: 198600061G
ANNOUNCEMENT PURSUANT TO RULE 704(5) OF THE LISTING MANUAL IN RELATION TO THE AUDITED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 APRIL 2019
The Board of Directors (the "Board") of Vibrant Group Limited (the "Company" and together with its subsidiaries, the "Group") wishes to announce that the independent auditors of the Company, KPMG LLP, in its Independent Auditor‟s Report ("Auditor's Report") has issued a Disclaimer of Opinion on the financial statements for the financial year ended 30 April 2019 ("FY 2019") due to the significance of the matters as described in the "Basis for disclaimer of opinion‟ section of the Auditor‟s Report.
An extract of the Auditor's Report is set out below:
Disclaimer of opinion
We were engaged to audit the financial statements of Vibrant Group Limited ("the Company‟) and its subsidiaries ("the Group‟), which comprise the consolidated statement of financial position of the Group and the statement of financial position of the Company as at 30 April 2019, the consolidated income statement and consolidated statement of comprehensive income, consolidated statement of changes in equity, consolidated statement of cash flows of the Group for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 47 to 157.
Because of the significance of the matters described in the "Basis for disclaimer of opinion‟ section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements. Accordingly, we do not express an opinion on the accompanying financial statements.
Basis for disclaimer of opinion
As described in note 2 to the financial statements, during our audit of Blackgold Group for the financial year ended 30 April 2018, we identified irregularities and discrepancies in relation to certain invoices and receipts. The accounting records of Blackgold Group were destroyed in a fire incident in August 2018. In the Report of Factual Assessment into the (i) Relevant Sales Transactions and (ii) Specific Accounts of Blackgold Group dated 24 January 2019 that was conducted by the Company‟s investigating auditors, multiple potential material misstatements in the financial position of the Blackgold Group as at the acquisition date of 13 July 2017 and in the financial results of Blackgold Group for the period up to 30 April 2018 were reported. Accordingly, we were not able to complete our audit procedures, as we were not able to obtain sufficient and appropriate audit evidence over the account balances of Blackgold Group as at the acquisition date, 30 April 2018 and 30 April 2019 as well as transactions of Blackgold Group for the period from the acquisition date to 30 April 2019.
Management has not consolidated the balances and transactions relating to Blackgold Group in the Group‟s consolidated financial statements for the years ended 30 April 2018 and 30 April 2019. This is not in compliance with SFRS(I) 10 Consolidated Financial Statements.
As a result of the above matters, we are unable to determine the extent of adjustments necessary in respect of the Group‟s consolidated financial statements for the years ended 30 April 2018 and 30 April 2019.
Shareholders are advised to refer to the Auditor‟s Report and the audited financial statements as set out in the Company‟s annual report for FY2019.
Shareholders are advised to exercise caution when dealing in the shares of the Company and to refrain from taking any action in relation to their shares which may be prejudicial to their interests. Where in doubt as to the action they should take, Shareholders should consult their financial, tax, legal or other professional advisors.
By Order of the Board
Vibrant Group Limited
Executive Director & CEO
15 August 2019