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Interior design firm Serrano orders independent review, internal audit

CATALIST-LISTED interior designer Serrano has identified an accounting firm to perform an independent review after it was made aware of allegations of improprieties and concerns relating to transactions, businesses as well as possibly conduct of management.

These allegations relate to the group's old business before the schemes of arrangement to restructure group debt.

In a filing to the Singapore Exchange (SGX) on Thursday, Serrano said it aims to finalise the scope of work and appoint the independent review firm within the next 30 days, with the company expected to complete its work within 60 days of being appointed.

In addition, over the next three months, Serrano will be conducting a comprehensive internal audit that will cover internal controls relating to financial, operational, compliance, information technology and risk management systems. The internal audit is slated to be completed within the next three months, after which the internal auditor will issue a report. 

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Meanwhile, Serrano intends to submit a revised resumption of trading proposal within the next three months following the completion of the independent review and internal audit, taking into account outcomes of the review and the audit, and identifying action points to tackle the concerns and issues raised by stakeholders, including SGX.

In addition, it will prepare a business viability and a going concern assessment as part of the revised resumption proposal. The company may be delisted from the Catalist board if it fails to submit the revised resumption proposal within the next three months.

In the same announcement, Serrano also said that it has been awarded a contract of about S$2 million for the supply and installation of aluminium and glazing works for Mont Botanik Condominium at Jalan Remaja.

Trading in Serrano's shares has been suspended since June 2017, after the company and a subsidiary went under schemes of arrangement to restructure group debt.