Audit Report
Background and objective
Company Profile：
CREATIONS LTD is a computer games developing company,  was formed in
the early 1 990s and is renowned in the computer games industry for including
revolutionary graphics and exciting net artwork in third generation games.
CREATIONS LTD is listed on the stock exchange.
The report from Gao Yang who the Manager in Tyler Peat Rose(TPR), a
company of chartered accountants. He overseeing the audit of CREATIONS
LTD for the year ended 30 September 201 0.
General financial situation of the company:
In the year ended 30 September 201 0 show: Sales (1 .02 million pounds).
Profit before taxation (900 000 pounds). Total asset (48.3 million pounds).
In the year ended 30 September 2009 show: Sales (875 000 pounds).Profit
before taxation(1 .8 million pounds). Total asset 41 .7 million pounds).
Company details:
1 . At the last 1 0 months, the firm Re-appointed Chief Executive Officer and
Chief Finance Director. The former CEO and FD who Requested to step down
by the Board because the ongoing fraud of investment .
2. Recently the company a higher return rate because the malfunctioning and
faulty games. If they can not be sold at a discount for cash, they should
become to inventory.
3. The company `s finance director is negotiating with bank for a 1 .5 million
pounds loan to support the cost of planned research and development.  They
plan to use a two-storey leasehold office building As collateral. The R&D work
has already began. But the bank is still waiting for Audit Report. Ps: The
company intends to increase the  the level of overdraft And secured  with the
same building.
4. The company's main competitors declared bankruptcy due to the increasing
pressure on margins in the industry and Deteriorating market environment.