Clarification to the Company's Annual Report for FY2018
The board of directors (the “Board” or “Directors”) of MM2 Asia Ltd. (the “Company”, and together with its subsidiaries, the “Group”) refer to the query raised by the Singapore Exchange Securities Trading Limited (the “SGX-ST”) on 25 July 2018, and set out below its response to the query from the SGX-ST:
Query 1:
Listing Rule 715(2) provides that the issuer must engage a suitable auditing firm for its significant foreign-incorporated subsidiaries and associated companies.
We noted that some of the Company’s foreign-incorporated subsidiaries and associated companies listed on pages 85 to 87 are audited by C.C. Lee & Associates, STH & Co Chartered Accountants, or not required to be audited under the law of country of incorporation. Please state:
(i) whether any of these entities is a significant foreign-incorporated subsidiary or associated company of the Company; and
(ii) if so, the Company and Audit Committee’s assessment of the suitability of the auditing firm used and their basis for the said assessment.
Company’s response to Query 1:
(i)(ii) The Company’s foreign-incorporated subsidiaries and associated companies listed on pages 84 to 87 were audited by C.C. Lee & Associates, STH & Co Chartered Accountants, are individually insignificant to the Group. Nevertheless, Nexia TS Public Accounting Corporation (“Nexia”), the External Auditors, for purposes of issuing the audit opinion on the Company and Group’s financial statements, have performed audit procedures to enable Nexia to issue the audit opinion. On this basis, the Audit Committee and Board confirmed that they are satisfied that the appointment of different auditors for its subsidiaries would not compromise the standard and effectiveness of the Group and of the Company.
