YuuZoo withheld information from EY, which reviewed its reporting of receivables and $38.4m revenue from franchise sales.
The Singapore Exchange Regulation (SGX RegCo) imposed a notice of compliance to YuuZoo Corporation and sent the findings of its independent auditor on the to the relevant authorities for possible breaches of the Securities & Futures Act.
SGX RegCo questioned the veracity of YuuZoo’s receivables from YZ Group and RM Bidder LLC, impairment of intangible assets in relation to Etisalat. The regulator also previously required YuuZoo to disclose the opinion of its statutory auditors on the veracity of its $8m income from YuuLog France, its $54.2m assets available for sale, and its $38.4m revenue from network development and franchise sales for 2017.
The statutory auditors of the Company have informed the Exchange and the Company today that they are unable to obtain sufficient appropriate audit evidence in order to provide an opinion as required in the NOC.
SGX RegCo listing compliance head June Sim noted that during consultations with YuuZoo’s audit committee (AC), a draft report by the independent reviewer, Ernst & Young Advisory Pte Ltd (EY), said that EY was not given access to the required information. “The review by EY was also restricted by scope exclusions imposed by the Company, which were inconsistent with the spirit of an independent review,” she said.
This resulted in SGX RegCo to refer the findings of EY to the relevant authorities for possible breaches of the Securities & Futures Act by the Company.
Through a notice of compliance, the exchange required YuuZoo to instruct EY to give a finalised summary of its initial findings to the Exchange and the AC concurrently and the AC to immediately release the report via SGXNet.
Previously, SGX has halted share trading on 19 March 2018 and will only lift the ban when it is “satisfied that the state of affairs of the company can be ascertained and the shares of the company can be traded on a fair, orderly and transparent basis.”
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