Darco Water: Could see some negative sentiments, after its auditors said it could not form an audit opinion on various matters' when it received the first draft of the audit report on Jun10. 'When Co. responded to the queries raised, the auditors took the view that they had completed their audit and refused to entertain Co. further, the board of directors claimed….
According to auditors LTC, concern were over grp's ability to continue as a going concern. Darco's current liabilities exceeded current assets by $1.13m, and it incurred negative operating cashflows of $3.97m and was not in compliance with a loan covenant for FY10. LTC add that Darco is in breach of a loan covenant on bank borrowings amounting to $33.99m, which may prompt the bank to stop the financing.
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