SBI Offshore may have breached various Catalist listing rules during a share placement conducted in 2014, a report from independent reviewer KordaMentha found on Thursday.
This may potentially be in breach of Catalist rules governing the disclosure of material information, KordaMentha said. Later in 2018, SBI Offshore's auditors BDO LLP found that JSBI had made an unauthorised write-off of 17.3 million yuan payable to the parent in its books, so that it effectively owed SBI Offshore nothing.During its review, it was handed an undated"write-off agreement" between SBI Offshore and JSBI, agreeing to waive the JSBI payable.
In response, SBI Offshore said on Thursday that after the unauthorised write-off was discovered, it made a provision of US$373,000 or 2.5 million yuan for related tax liabilities in China in relation to the write-off in the financial year ended Dec 31, 2017.