Contel

Contel - Auditors raised an emphasis on a matter following the release of grp's annual report. Note that the Group incurred a net loss of US$1,121,000 and net cash used in operating activities of US$556,000 for the financial period from 1 April 2012 to 31 December 2012. Furthermore, the Group’s and the Co’s current liabilities exceeded current assets by US$1,090,000 and US$1,347,000 as at 31 Dec12. The Group is reliant on its existing cash and bank balances for its continuing operations which show a balance of approximately US$138,000 as at 31 December 2012. These factors indicate the existence of a material uncertainty which may cast significant doubt about the Group’s and Company’s ability to continue as going concerns. The ability of the Group and Co to continue as going concerns is dependent on the Group’s ability to generate cash inflows from its existing operating activities and to raise additional funds from investors. If the Group and Company are unable to continue in operational existence for the foreseeable future, the Group and Company may be unable to discharge their liabilities in the normal course of business and adjustments may have to be made to reflect the situation that assets may need to be realised other than in the normal course of business and at amounts which could differ significantly from the amounts at which they are currently recorded in the balance sheets. In addition, the Group and Co may have to reclassify certain non-current assets as current assets. No such adjustments have been made to these financial statements