Sakae applies for more time to hold AGM

Sakae's independent auditor, Deloitte & Touche, said it could not obtain appropriate audit evidence and certain information related to Sakae's liquidated associates Griffin Real Estate Investment Holdings and Gryphon Capital Management, and Cocosa Ex
Sakae's independent auditor, Deloitte & Touche, said it could not obtain appropriate audit evidence and certain information related to Sakae's liquidated associates Griffin Real Estate Investment Holdings and Gryphon Capital Management, and Cocosa Export. ST FILE PHOTO

Restaurant operator says board still trying to resolve differences

Sakae Holdings has applied for an extension for the holding of its annual general meeting (AGM), which was scheduled for next Tuesday.

The sushi restaurant operator said its board is still in the process of resolving differences and exploring options, including commissioning an independent review of its auditor's disclaimer opinion of its results for the full year ended June 30.

The differences refer to recent events in which the company's independent auditor, Deloitte & Touche, said it could not obtain appropriate audit evidence and certain information related to Sakae's liquidated associates Griffin Real Estate Investment Holdings and Gryphon Capital Management, and Cocosa Export.

Following the disclaimer opinion, Sakae non-executive independent director Foo Maw Shen resigned over differing views on the follow-up action, a move that prompted a query from the Singapore Exchange.

Sakae said yesterday that it is in the process of appointing an independent auditor to review Deloitte & Touche's disclaimer opinion after independent checks have been conducted.

"With the completion of the review, the company's shareholders would have more information on the FY2019 financial statements, including those raised in the disclaimer, and to clarify any other questions they may have at the re-scheduled FY2019 AGM," Sakae added.

It has also applied to the Accounting and Corporate Regulatory Authority for an extension of time to hold its AGM.

In a separate announcement released yesterday, the group noted discrepancies in its audited financial results and its preliminary results for fiscal year 2019.

This includes a variance of $5.9 million for other receivables and pre-payments, from amendments made to its financial statement.

The company had previously relied on the group's Malaysian subsidiaries' management accounts for its preliminary results as the audit for the Malaysian subsidiaries were still in progress.

Other reasons include reversal impairment on a related party of the company previously provided, and a reclassification of accounts between subsidiary and other receivable relating to Cocosa Export.

There was also a $4.3 million variance on the company's total non-current assets, most of which came from the reclassification of accounts between subsidiary and other receivable on Cocosa.

At the group level, $5.2 million in variance was also observed under total liabilities and equity after the group saw a variance of $6.1 million under accumulated losses. This was due to a revaluation of assets by the company and Malaysian subsidiaries, and a reversal impairment on other receivables in relation to Cocosa Export previously provided.

Sakae has asked for a trading halt called last Thursday to be lifted.


Correction note: An earlier version of this article incorrectly stated that the Singapore Exchange had approved Sakae's application for an extension to hold its AGM. We are sorry for the error.

A version of this article appeared in the print edition of The Straits Times on October 22, 2019, with the headline 'SGX allows Sakae to delay holding of AGM'. Print Edition | Subscribe