very unusual wording ! lol
###Very unusual wording in a Annual Report......from a Board who obviously have an eye of corprorate governance and making sure they are telling everyone what will happen in advance to protect themselves. hate to be holding SKG now.....looking very very dangerous when the Directors put this sort of wording in documents.###
Bazzaroid, I've just realised what you're implying........LOL, it's not their ANNUAL report that you're reading it's their FINANCIAL report, the annual report will be released to the market in due course and is a more presentable PDF file format which basicly contains the same information, but includes further details of the business going forward and also contains revenue stream information and top twenty information !
The auditors comments are basicly a rubber stamp enforced by the ASX as evidenced from last two years of financial reports. In each case the auditor is obligated to comment on matters that could have a negative impact on the company going forward.
In all three cases they say "it would be uncertain whether the consolidated entity would be able to continue as a going concern, and in that circumstance realise its assets and extinguish its liabilities in the normal course and at the amounts stated in the financial report. No adjustments have been made in the financial report in this regard."
So you find this wording unusual do you ?..... LOL, it's been in every annual report, and SKG are still a going concern. ----------------------------------- 2003 page 35 of annual report.
Inherent Uncertainty regarding Going Concern Without qualification to the opinion expressed above, attention is drawn to the matter noted in Note 1 to the Financial Statements under the heading “Going Concern Basis”. Should satisfactory outcomes not be achieved in resolving the disputes and legal proceeding matters included in Note 30, and should the consolidated entity not besuccessful in the implementation of strategic plans to generate additional revenue streams then, in the absence of a capital raising, there would be significant uncertainty whether the consolidated entity will be able to continue as a going concern and therefore whether it will realize its assets and extinguish its liabilities in the normal course of business and at the amounts shown in the Financial Statements. Dated the 26th day of August 2003. HORWATH SYDNEY PARTNERSHIP Chartered Accountants Michael S Kaplan Partner ------------------------------ 2004 page 43 of annual report
(b) The consolidated entity has experienced net operating cash outflows associated with its ordinary activities since formation. Notwithstanding the above, the financial statements have been prepared on a going concern basis as the Directors are of the view that the strategies they have implemented to increase the consolidated entity’s revenue streams will be successful. As indicated in Note 26 to the financial statements, the Company has also subsequent to year-end on 1 September 2004 signed an agreement with ACCP Securities Pty Limited (“ACCP”), pursuant to which ACCP will, subject to the Company meeting certain specified conditions, underwrite the raising of $10 million in equity capital, which will be used for the purposes of implementing the strategies to increase the consolidated entity’s revenue streams. If the consolidated entity is unable to achieve satisfactory outcomes with respect to successful implementation of strategies to increase revenue streams, then, in the event that the capital raising described above does not proceed, or in the absence of an alternative capital raising, it would be uncertain whether the consolidated entity would be able to continue as a going concern, and in that circumstance realise its assets and extinguish its liabilities in the normal course and at the amounts stated in the financial report. No adjustments have been made in the financial report in this regard. Dated the 27th day of September 2004. HORWATH SYDNEY PARTNERSHIP Chartered Accountants Michael S Kaplan Partner ---------------------------------- 2005 Financial report.
Without qualification to the opinion expressed in this report, attention is drawn to the matters noted in Notes 1 and 8 of the financial statements as follows a) The consolidated entity has experienced net operating cash outflows associated with its ordinary activities since formation. Notwithstanding the above, the financial statements have been prepared on a going concern basis as the Directors are of the view that the conditional agreement to acquire a controlling interest in E-pay (M) Sdn Bhd (“E-pay”) and the associated proposed capital raising of $17.5 million will proceed and will place the consolidated entity in a financial position consistent with that of a going concern. The directors are also currently negotiating interim share placements and I or short term borrowings of up to $2.5 million, which is required to fund the consolidated entity’s short term working capital requirements until the E-pay acquisition and capital raising referred to in the preceding paragraph are finalised. The directors are confident that these negotiations will be successful. The E-pay acquisition referred to above is subject to certain conditions being met, In the event that either the acquisition and associated proposed capital raising does not proceed, or the interim capital raisings I borrowings to fund the consolidated entity’s short term working capital requirements do not proceed, then the consolidated entity would be unlikely to be able to continue as a going concern and in that circumstance realise its assets and extinguish its liabilities in the normal course and at the amounts stated in the financial report. No adjustments have been made in the financial report in this regard. Horwath Sydney Partnership .
SKG Price at posting:
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