Singapore Hot Stocks-Informatics Education down after audit

SINGAPORE, July 7 (Reuters) - Shares of Informatics Education (INFO.SI: Quote, Profile, Research) plunged by as much as 22 percent after an audit from Ernst and Young saying there was material uncertainty regarding the firm's ability to "continue as a going concern".

Informatics, which franchises computer and commercial training centres, dropped to a 21-month low of S$0.035 with more than 18 million shares changing hands.

Ernst and Young said on Friday that factors such as the firm's net loss for this year and financial obligations arising from its liabilities exceeding total assets cast doubts over Informatics' future.

The auditors also drew attention to ongoing investigations by the Commercial Affairs Department regarding the firm's restated profits in 2004.

"The outcome of the investigation might uncover other information, which might require adjustments to be made to the financial statements," said Ernst and Young in its audit opinion.

(For full story, please click [ID:nSN7441692]) 0702 GMT - Straits Times Index .FTSTI was up 1.28 percent. (Reporting by Charmian Kok, Editing by Neil Chatterjee)