REPL::Financial Statements and Related Announcement::Full Yearly Results
Issuer & Securities
CHALLENGER TECHNOLOGIES LIMITED
CHALLENGER TECHNOLOGIES LTD - SG1O97915910 - 573
Financial Statements and Related Announcement
Date &Time of Broadcast
Announcement Sub Title
Full Yearly Results
Submitted By (Co./ Ind. Name)
Chia Foon Yeow
Description (Please provide a detailed description of the event in the box below - Refer to the Online help for the format)
The Board of Directors refers to the unaudited results announcement for the full year (FY2016) and 4th Quarter (4Q2016) ended 31 December 2016, as announced on 15 February 2017 (the "Announcement").
The Board wishes to inform shareholders that following the release of the Announcement, management discovered that an amount of approximately $1.75 million was erroneously recorded as inventory in the IT system. This resulted in, inter alia, the overstatement of ending inventory balance as at 31 December 2016 and the profit before tax for FY2016 and 4Q2016. As such, the Board would like to release the attached revised unaudited results ("Revised Announcement") that have been adjusted for such overstatement.
The details of the key line items in the Consolidated Statement of Comprehensive Income and Statement of Financial Position that are materially affected and have been adjusted, are set out below:
Consolidated Statement of Comprehensive Income (FY2016 and 4Q2016):
a) A decrease in the "Changes in Inventories of Finished Goods" by approximately $1,750,000.
b) A decrease in "Employee Benefits Expense" (relating to management performance bonus) by approximately $330,000.
c) A decrease in "Income Tax Expense" by approximately $284,000.
The net effect on the "Profit from Continuing Operations, Net of Tax" and "Total Comprehensive Income" from the above adjustments is a decrease of approximately $1,136,000.
Statement of Financial Position (Group and Company as at 31 December 2016):
a) A decrease in "Inventories" by approximately $1,750,000.
b) A decrease in "Trade and Other Payables" (relating to adjustment in Employee Benefits Expense) by approximately $330,000.
c) A decrease in "Income Tax Payable" by approximately $284,000.
Consequential amendments to the Consolidated Cash Flow Statement, Statement of Changes in Equity and Notes to the Accounts have also been made to reflect the above adjustments. Please refer to the attached Revised Announcement for the full set of results announcement which will supersede the previous Announcement.
The Board of Directors also wishes to inform shareholders that the error in the IT system has now been rectified and the management has put in place additional measures to mitigate the risk of such errors recurring in the future.
The Board of Directors wish to highlight that notwithstanding the adjustments for FY2016 and 4Q2016 results, there will be no changes to the previously announced final dividend proposed of $0.016 per share to be approved by shareholders at the coming Annual General Meeting.
For Financial Period Ended
Total size =333K