SBI Offshore appoints independent reviewer to look into unauthorised fund write-off

SINGAPORE - SBI Offshore on Friday (May 25) said it has appointed independent reviewer KordaMentha to undertake an audit of the matters which may have led to an unauthorised write-off of funds from the group's accounts.

As part of its 2017 financial audit, the board was in February alerted by its auditors BDO LLP of a difference between the audited 2015 accounts of the company and those of its China-incorporated subsidiary, Jiangyin SBI Offshore Equipment Co (JSBI).

The difference arose because 17.3 million yuan ($3.63 million) payable by JSBI to the company was written off in JSBI's audited 2015 accounts, without the authorisation of the board.

In an exchange filing in February, SBI Offshore had said its board is of the view that there is no basis for JSBI to write off the amount payable, and that it will seek to reverse this written-off amount. It added that its board was in discussions with auditors to determine if there might be any financial impact on the group's fiscal 2017 results.

Among other things, the scope of the independent review will include reviewing circumstances of the unauthorised write-off, identifying any lapses in internal control and making appropriate recommendations, SBI Offshore said.

The company also noted that it will update shareholders of key findings from the independent review.

Shares in SBI Offshore last traded at 8 cents apiece as at 10.24am on Friday.

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