The auditor of Investment Research Group has issued a qualified opinion on the company's accounts, which show an after tax loss of $2.24 million.IRG, which publishes the NZ Investor Monthly magazine, said it suffered an impairment of $1.3 million in the c
The auditor of Investment Research Group has issued a qualified opinion on the company’s accounts, which show an after tax loss of $2.24 million.
IRG, which publishes the NZ Investor Monthly magazine, said it suffered an impairment of $1.3 million in the carrying value of deferred tax and impairments of $159,704 and $232,934 in the carrying values of goodwill and customer databases respectively.
Operating revenue of $2.2 million was slightly down on last year’s $2.25 million, according to the annual report out today.
IRG said its auditor, Deloitte, had qualified its opinion on the carrying value of the deferred tax asset and the recoverable value of goodwill and customer databases.
“As a result of these qualifications the auditor's report states that they are unable to form an opinion.”
The audit report was not included in the annual report released to the NZX today.
The company has had its shares suspended from trading this year due to the late filing of accounts.
Covenant breach
IRG was in breach of its banking covenants as at September 21. BNZ – owed $1.6 million – has agreed to new covenants and renewed its loan term until July 1 next year.
The new loan is repayable in monthly principal payments of $5000 plus interest, subject to review by December 31.
IRG also has a $385,000 vendor loan with finance company Dorchester.
The Dorchester loan is at an interest rate of 10% over three years and is unsecured. At March 31, 2010 the loan was $13,435 in arrears and as a result the balance has been reflected as current.
A new agreement has not been signed.
Subsequent to balance date, Brent King, the company’s largest shareholder, advanced an additional $460,776 to the company.
The funds are unsecured, non-interest bearing and have no fixed terms of repayment, “however, it is the intention of the company to settle the loan account through an issue of shares at 1.1 cent each, subject to approval by the shareholders and the Takeovers Panel.”
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