Balaan Receives 'Disclaimer of Opinion' on 2024 Audit Report... "Failure to Submit Key Documents Including Financial Statements"

Balaan Co., Ltd. (hereinafter referred to as the Company) received a 'disclaimer of opinion' in the audit of its financial statements for the 2024 fiscal year.

Through the audit report, the auditor stated, "We do not express an opinion on the financial statements of the Company," adding, "Because of the significance of the matters described in the Basis for Disclaimer of Opinion section, we were unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion."

The primary reason for the disclaimer of opinion cited by the auditor is the limitation on the scope of the audit.

According to the 'Basis for Disclaimer of Opinion' in the report, it was found that the auditor was not provided with key documents essential for conducting audit procedures by the Company's management. The unsubmitted documents included all of the following: ▲a written representation signed by management ▲the statement of financial position as of December 31, 2024 ▲the income statement ▲the statement of changes in equity ▲the statement of cash flows, and ▲notes to the financial statements.

The auditor explained, "Due to this limitation on the scope of the audit, we were unable to perform the audit procedures required by the Korean Standards on Auditing."