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Auditors flag material uncertainty at beauty treatment firm Mary Chia
BEAUTY treatment firm Mary Chia is facing "material uncertainty" over its ability to continue its operations, said its external auditor Foo Kon Tan in a regulatory filing on Wednesday.
This comes as the company had incurred a post-tax loss of S$5.56 million, and net operating cash outflows of S$1.64 million for the fiscal year ended March 31, 2018. These factors, among others, "indicate the existence of a material uncertainty which may cast significant doubt on the group’s ability to continue as going concerns," the auditor said.
Mary Chia separately posted material differences between its unaudited and audited results for fiscal 2018, with its income statement adjusted in part due to interest-free loans from the founder and former director, Mary Chia. Accordingly, net loss on an audited basis stood at S$5.85 million, compared to the unaudited figure of S$5.82 million.
The firm also reported a smaller net operating cash outflow based on audited figures, compared to the unaudited figures. Net cash used in operating activities increased by S$0.7 million mainly due to reclassification in movements of working capital changes, with the amount previously included as part of cash from financing activities, the regulatory filing showed.