The auditor wrote:"These factors indicate the existence of a material uncertainty which may cast significant doubt on the group's ability to continue as going concern. Our opinion is not modified in respect of this matter."
On Monday, Mary Chia said its directors were of the view that the group can continue as a going concern, as it"continues to be prudent with its cash flow planning and to take active measures to streamline its business and reduce costs", and"continues to be focused on new sales initiative via social media platforms to drive revenue with lower upfront costs".
It added that controlling shareholder Suki Sushi has given an undertaking to provide financial support to the group for the 12 months following the date of the independent auditor's report, to operate without any curtailment of operations. The director and the former director have also provided an undertaking not to demand repayment of the unsecured and non-interest bearing amounts of S$1.494 million and S$2.118 million due from the group respectively, within the next 36 months from March 31, 2017 or until the cash flows of the group permits, whichever is later.
Another Cul-de-Sac possibly!