re: trading halt receivers appointed Insolvent trading ! you...

re: trading halt receivers appointed Insolvent trading ! you betcha, put the suckers away--

14-03-2003 01:32PM FROM-Court & CO Chartered Accountants t 6 1 2 9 2 5 1 7 1 3 8 T-732 P.002/025 F-357
INDEPENDENT REVIEW REPORT
TO THE M-ERS OF
QUADTEL LIMITED
scope
We have reviewed the financial report in the Form of Appendix 4B of the Australian
Stock Exchange (ASX) Listing Rules, comprising the half-yearly report and directors’ declaration of Quadtel Limited for the half-year ended 31 December 2002. The financial report is the consolidated financial report of the economic entity comprising the company and the entities it controlled at the end of the half-year or from time to time dmring the half-year. The company’s direcrors are responsible for the preparation and presentation ofthe financial report. We have performed the review of the financial report in order to state whether, on the basis of procedures described, anything has come to our attention that would indicate that the financial report is not presented fairly in accordance with Accounting Standard AASB 1029 Interim Financial Reporting, and other mandatory professional reporting requirements and ASX Listing Rules as they relate to Appendix 4B and in order for the company to meet its obligations to lodge the financial report with the Australiml Securities and lnvestments Commission and the ASX.
Our review has been conducted in accordance with Australian Auditing Standards
persunnel and analylical procedures applied to the financial data. These procedures do
applicable to review engagements. A review is limited primarily to inquiries of company
not provide all the evidence that would be required in an audit, thus the level of
assurance provided is less than given in an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.
Qualifcatiuns
a. The investment in Hang Kong Dragon Ind (Ningbo) of $2,901,354 in 0th Investments should be valued at $NIL. There is insufficient evidencc to supporr its carrying value in the financial statements. As a result, Investments would be recorded as $NIL, he Consolidated Net loss would be $5,734,254.
b. The economic entity has an cxcess of current liabilities over current assets.
11 has recently refocussed away from 3 major suppliers with low gross margin
products to thosc having higher margin products. At this stage, the upshot of this rc-focus has not yet yielded significant higher gross conlTibutions.
As a consequence, there could be a shortfall in future results and net cash
there is uncertainty regarding continuing operations of the entitics in the
inflows which may not be covered by either equity or loan funding.