F. Recognition, Measurement and Disclosure
1. Adequate provision has been made for adjustments and losses in collection of receivables.
2. Inventories included in the statements of financial position is the evaluation of quantities determined from inventory records which were adjusted on the basis of annual physical inventories taken for the year ended by competent employees under the supervision of officials.
We have no plans to abandon lines of product or other plans or intentions that will result in any excess or obsolete inventory, and no inventory is stated at an amount in excess of net realizable value.
3. We have considered the values of non-current assets, including investments at year end date and are satisfied that no further provisions are required either due to any impairment in the values of these assets or for any other reason. The assumptions used in estimating the recoverable amounts of these assets for determining whether there has been any impairment are reasonable.
4. Allowances for depreciation have been adjusted for items of property, plant and equipment that have been abandoned or are otherwise unusable.
5. We have no plans or intentions that may materially affect the carrying value or classification of assets and liabilities reflected in the financial statements.
G. Ownership of Assets
1. Except for assets capitalised under finance leases, the Company has satisfactory title to all assets appearing in the statements of financial position, and there are no liens or encumbrances on the Company assets, nor has any asset been pledged as collateral, other than those that are disclosed in the financial statements. All assets to which the Company has satisfactory title appear in the statements of financial position.
2. All agreements and options to buy back assets previously sold have been properly recorded and adequately disclosed in the financial statements.
3. There are no formal or informal compensating balance arrangements with any of our cash and investment accounts. Except as disclosed in the financial statements, we have no other line of credit arrangements.
H. Liabilities and Contingencies
1. All liabilities and contingencies, including those associated with guarantees, whether written or oral, have been disclosed to you and are appropriately reflected in the financial statements.
2. We have informed you of all outstanding and possible litigation and claims, whether or not they have been discussed with legal counsel.
3. We have recorded and/or disclosed, as appropriate, all liabilities relating to litigation, claims and all guarantees given to third parties, both actual and contingent, and have disclosed in the financial statements.
4. Other than as disclosed and/or accrued in the financial statements, there are no other material liabilities and contingent liabilities, including all outstanding litigation and claims and guarantee given to the third parties against the Company.
5. We are unaware of any violations or possible violations of laws or regulations the effects of which should be considered for disclosure in the financial statements or as the basis of recording a contingent loss, other than those disclosed and/or accrued in the financial statements.
6. We are unaware of any known or probable instances of non-compliance with the requirements of regulatory or governmental authorities, including their financial reporting requirements, and there have been no communications from regulatory agencies or government representatives concerning investigations or allegations of non-compliance.
I. Income and Indirect Taxes
1. We acknowledge our responsibility for the tax accounting methods adopted by the Company, which have been consistently applied in the current year, and for the current year income tax provision calculation.
2. We also acknowledge our responsibility for the plans with respect to future taxable income, which represent our estimates as to the outcome of those plans, based on available evidence, and for the significant assumptions used in our analysis. We would implement such strategies as necessary to prevent a tax operating loss or credit carryforward from expiring.
3. We have disclosed to you all tax opinions, correspondence with tax authorities, or other appropriate information that served as support for the accounting for potentially material matters.
4. Adequate amounts have been accrued for all local and foreign taxes on income including amounts applicable to prior periods not finally settled and paid.
J. Equity
1. We have properly recorded or disclosed in the financial statements the share/capital stock repurchase options and agreements, and shares/capital stock reserved for options, warrants, conversions and other requirements.
2. Other than as disclosed in the note to financial statements, there are no significant restrictions on our ability to distribute the retained profits of the Company because of statutory, contractual, exchange control or other restrictions.
K. Profit and Loss Account
1. The results for the year were not materially affected by :
(i) transactions of a sort not usually undertaken;
(ii) circumstances of an exceptional or non-recurring nature.
2. In particular, all revenue earned by the Company has been accounted for in the financial statements. Likewise, all expenditure has been taken into the financial statements and they are in the normal course of business of the Company and do not include any personal expenses of directors and/or shareholders.
L. Purchase and Sales Commitments and Sales Terms
1. There were no purchase or sale commitments which could give rise to a loss for which no provision has been made in the financial statements.
2. At the year end, the Company had no unusual commitments or contractual obligations of any sort which were not in the ordinary course of business and which might have an adverse effect upon the Company (e.g., contracts or purchase agreements above market price; repurchase or other agreements not in the ordinary course of business; material commitments for the purchase of property, plant and equipment; significant foreign exchange commitments; open balances on letters of credit; purchase commitments for inventory quantities in excess of normal requirements or at prices in excess of the prevailing market prices; losses from fulfillment of, or inability to fulfill, sales commitments, etc.).
3. All material commitments for construction or acquisition of property, plant and equipment or to acquire other non-current assets, such as investments or intangibles have been disclosed in the note to the financial statements.
4. We have provided you with all agreements regarding sales to distributors and resellers. These agreements represent the entire arrangements and are not supplemented by other agreements either written or oral.
M. Going Concern
We are not aware any condition or event that may cast significant doubt on the Company’s ability to continue as a going concern. The use of going concern basis in the preparation of financial statements is appropriate.
N. Subsequent Events
1. There have been no events subsequent to year end which require adjustment of or disclosure in the financial statements or notes thereto.
Should any such material events occur after the date the financial statements are approved for issue, we shall advise you accordingly.
O. Use of the Work of an Expert
We agree with the findings of the experts engaged to evaluate the obligation of post employment benefits under define benefit plans and have adequately considered the qualifications of the experts in determining the amounts and disclosures included in the financial statements and the underlying accounting records. We did not give or cause any instructions to be given to the experts with respect to the values or amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters that have had an effect on the independence or objectivity of the experts.
P. Independence
We are not aware of any act or omission on the part of the Company that does or may impact on your ability to comply with your independence obligations as auditor of the Company. We have brought to your attention any items which we consider may affect your ability to remain independent of the Company and we will continue to work with you to maintain the independence of the audit relationship.