From John Lane EFTel's General Manager with regards to the auditors report
Easy to say, especially in hindsight. We had the company optimised for growth, in accord with our strategy. The auditors pulled that one out of the hat right at the very end of the audit and it was too late to do anything about it.
And in any case nobody was concerned about it, as they should not be, until a shareholder decided to highlight it in a tendentious and very damaging manner in order to gain some political points as the AGM approached.
So, once again, we are not talking about a real doubt about the company continuing to trade. We are talking about an accounting technicality relating to the manner in which the assets are valued. The company has net assets of $15M. That means, $15M more on the asset side of the balance sheet than the liability side. And total debt is very small, by any standards. The whole thing is purely a technicality turned into a political football as an opportunistic tactic.
The irony is, the shareholder concerned has only damaged his own interests. Life is like that.
Regards, John Lane.
EFT Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
