Serrano gets SGX nod to hold FY2016 AGM by April; Acra may fine directors

INTERIOR design contractor, Serrano, on Thursday said that the Singapore Exchange Securities Trading (SGX-ST) has granted the firm an extension to hold its FY16 annual general meeting (AGM) by April this year, instead of February.

The company had previously requested an extension to push back its AGM from Nov 14, 2017 to Feb 28, 2018.

The SGX is granting Serrano a waiver, subject to the company announcing its reasons for seeking an extension, and convening its AGM by April 30, 2018, among other conditions.

In its statement to the Singapore bourse on Thursday, the firm said that the waiver was sought as more time is needed to finalise its FY16 audit.

However, this extension was not granted by the Accounting and Corporate Regulatory Authority (Acra), which in December requested the company to take immediate action to hold its AGM, and release its FY16 financial statements by Feb 28, failing which it will consider enforcement action against directors of the company.

In view of this, Serrano highlighted that its directors would likely be subjected to fines by Acra, according to provisions under the Companies Act.

On Nov 7, the company announced that it was undergoing schemes of arrangement with its creditors, and had entered into an investment agreement with certain investors.

The firm also said in July that its group financial controller Yap Keck Meng had left the company, leaving it with no accounts and finance staff.

Most recently in January, the contractor named two new board members following the departure of three directors.

For FY17, Serrano narrowed its loss to S$8.93 million from S$111.63 million a year ago, but continued to suffer contract terminations and the inability to secure new contracts as a result of its ongoing debt restructuring.

Shares in Serrano have been voluntarily suspended since June 16 last year, and last traded at 3.1 Singapore cents apiece on June 12.