Report on the Audit of Financial Statements Qualified Opinion We have audited the financial statements of Keong Hong Holdings 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 September 2024, and the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows of the Group for the financial year then ended, and notes to the financial statements, including a summary of material accounting policy information. In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion section of our report, the accompanying financial statements are properly drawn up in accordance with the provisions of the Companies Act 1967 (the “Act”) and Singapore Financial Reporting Standards (International) (“SFRS(I)s”) so as to give a true and fair view of the financial position of the Group and of the Company as at 30 September 2024 and of the financial performance, changes in equity and cash flows of the Company for the year ended on that date. Basis for Qualified Opinion During the financial year ended 30 September 2024, the management restated the classification of the Group’s investment in Katong Holdings Pte Ltd (“KHPL”), including the loans extended to KHPL, as an investment in associate when the investment was previously recorded at fair value through other comprehensive income while the corresponding loans was recorded at fair value through profit or loss. The Group recorded share of losses from the investment in KHPL of $1,317,000 and $2,299,000 in the statement of profit or loss and other comprehensive income for the financial years ended 30 September 2023 and 2024 respectively, and carrying amounts of the equity-accounted for investment in KHPL of $37,733,000 and $36,416,000 in the statement of financial position as of 1 October 2022, 30 September 2023 respectively. As of 30 September 2024, with reference to SFRS(I) 5 Non-current Assets Held for Sale and Discontinued Operations, the investment in KHPL was presented as non-current asset for sale in the statement of financial position, with carrying amount of $34,117,000. During the course of our audit, we were unable to obtain sufficient appropriate audit evidence, including meeting minutes and resolutions as well as KHPL’s financial information for the affected financial years, to support the management’s restatements. We understood from management that they faced limitations in retrieving the information. In the absence of alternative procedures and necessary audit evidence, we were unable to ascertain the appropriateness of the re-classification and restatement of the carrying amounts of the Group’s investment in KHPL as an associate nor the loans extended to KHPL, as well as the corresponding financial information and disclosures. We were hence also unable to assess the appropriateness of the carrying amount of KHPL presented as non-current asset held for sale as of 30 September 2024. Should adjustments be made to the carrying amounts of the investment in the associate and/or the non-current asset held for sale and/or the share of results of the investments in the respective financial years, corresponding and consequential adjustments would need to be made to the corresponding financial line items in the affected financial years. We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group in accordance with the Accounting and Corporate Regulatory Authority (“ACRA”) Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (the “ACRA code”) together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. 53 ANNUAL REPORT 2024 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF KEONG HONG HOLDINGS LIMITED
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