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YuuZoo cites 'impossible' timeframe for auditors to make call
YUUZOO Corporation Limited, which saw a suspension in its shares by the Singapore Exchange (SGX) on Monday, clarified on Thursday that it was due to an "impossible" timeframe given for it to put together material required by auditors RT LLP.
The company had missed a deadline by the SGX, under a notice of compliance, to disclose its auditors' opinion on certain items in its latest financial statements by 19 March.
YuuZoo said that upon receiving the notice, it contacted RT LLP. The auditors informed the company that in order to reply to the SGX queries, they required complete business plans and five-year discounted cash flow analysis for all of YuuZoo's 46 franchisees by March 8.
The auditors also required 10 days to review the complete material.
As it was "impossible" to complete the above in the timeframe given, YuuZoo asked the SGX for an extension until the end of March, but the request was rejected on March 13, 2018.
YuuZoo said that despite the events, it "did all in its power" to supply the auditors with the information and material related. YuuZoo was only able to hand over the final documents to RT LLP on Monday, March 19.
In a meeting held on March 19 between YuuZoo and the auditors, RT LLP had agreed to review the documents supplied no later than by March 28, said YuuZoo.
Before an announcement could be made on this matter, the SGX had issued a statement that trading in YuuZoo's shares had been suspended with immediate effect.