The auditor of Tse Sui Luen Jewellery (International) has issued a disclaimer over the accounts as the beleaguered retailer reported a $608.63 million net loss for the year to February 28.
The auditor highlighted a $51.15 million 'deposit' paid to an unnamed potential business partner to help it expand in the mainland.
The amount was paid to a minority shareholder of a subsidiary of the group, who was purported to be an agent for the potential partner.
'We were unable to obtain any evidence regarding the terms on which the deposit was made, including whether or not it is refundable,' the auditor said.
It was unable to obtain written confirmation that the amount had been received and held by the potential business partner, or to determine the nature of the relationship between the group and the potential partner.
As a result, it could not be satisfied the deposit was fairly stated as of February. Any adjustment to the figure would affect the company's net assets and net loss for the year, it said.