ecoWise reports S$7.11m loss in audited FY2021 results, almost twice unaudited figure

STRIFE-HIT environmental-solutions provider ecoWise has reported S$7.11 million in total comprehensive loss for FY2021 based on its audited financial statements, almost twice the unaudited figure of S$3.81 million.

In a bourse filing on Sunday (May 15), ecoWise reported material variances between its audited and unaudited financial statements for the year ended Oct 31, 2021.

Among other things, the variances were due to potential legal claims from former employees, impairments, accrual of professional fees, bonuses, depreciation of additional reinstatement costs, and over-provision of income and deferred tax liabilities for its Malaysia subsidiaries.

These resulted in lower other gains and higher other losses.

Its independent auditor RSM Chio Lim issued a disclaimer of opinion in its report on the audited consolidated financial statement for FY2021. The disclaimer of opinion is based on factors such as service agreements entered by Chongqing ecoWise Investment Management, disclosures of related-party relationships, transactions and balances, unconsolidated entities, an internal audit under its notice of compliance, and accounting of long-outstanding payables.

The group’s plans in the immediate future include stabilising operations in Singapore and Malaysia, monetising its non-core assets in Singapore, Malaysia and China, as well as exploring opportunities to generate additional funds for working-capital purposes, either via loans from third parties and/or existing substantial shareholders.

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The company said it will engage with external and internal auditors, as well as other relevant professionals, to determine the appropriate steps to address matters raised in the auditor’s report.