Sen Yue reports large discrepancies between audited, unaudited financials

CATALIST-LISTED waste management firm Sen Yue Holdings on Thursday (Dec 29) reported material variances between its audited and unaudited financial statements for the full year ended Sep 30, 2021.

Its audited financials showed that it incurred far higher operating expenses, which reached over S$6.4 million, versus a S$72,000 amount reported in its unaudited financials. 

Among other changes, the audited financials also showed a S$387,000 variance to the line ‘impairment loss recognised on financial assets’ – the audited amount was a deeper loss of S$1.2 million.

Sen Yue thus recorded a S$5.5 million loss in its 2021 financial year, not a profit of S$1.3 million originally reported. And its total comprehensive loss for the year, net of tax, would be S$10 million, not S$3.1 million.

Sen Yue explained that S$6.4 million increase to the ‘other operating expenses’ line was mainly due to accounting for financial guarantee claims by the company arising from being a corporate guarantor for the banking facilities extended by its principal lenders to its subsidiary, SMC Industrial, at an aggregate amount of S$4.3 million.

Another S$2.2 million was owing to the recognition of expenses admitted by judicial managers. The amount was previously not recorded by the group, it said.

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Sen Yue added that the increase in impairment loss recognised on financial assets was mainly due to a S$280,000 rise in the allowance for the expected credit loss and S$110,000 in bad debts that were written off.

Shares of Sen Yue have been suspended from trading since May 4, 2020.