SINGAPORE (Mar 22): YuuZoo Corp, the online-gaming and e-commerce company, said auditors RT LLP would take until the middle of next week to assess the documents and formulate a response.

YuuZoo said it still managed to supply the required information to auditors "just in time" even though "it was impossible" to produce business plans and five-year discounted cashflow analysis for its 46 franchises within the two-week deadline given by Singapore Exchange and had asked for an extension till the end of March.

See: SGX hits YuuZoo with compliance notice to explain variance in numbers

SGX halted trading YuuZoo shares on Tuesday after its auditor said "it was unable to obtain sufficient appropriate audit evidence" from the company to respond to the queries.

See: SGX slaps trading suspension on YuuZoo

YuuZoo also took the opportunity to clarify the impairment methodology which the group has adopted pending an opinion from the auditors "so that both investors and regulators have a full understanding of the thoroughness by which the company’s impairment assessment has been conducted".

When reviewing all its franchisees for possible impairments at the end of last year, YuuZoo said it found that while a large number of the franchisees had outperformed their forecast first-year user growth numbers and showed lower losses than expected with a few already achieving first-year profits, but there were also franchisees that had not hit their expected user growth numbers in the first year.

In preparing its unaudited FY2017 income statement, YuuZoo said it had adopted a conservative approach. This was achieved by keeping the values untouched for those franchisees that had outperformed significantly but impairing others including those which had shown better user growth than forecast.

YuuZoo, however, said it would leave it to its auditors to make the final assessment.

There was no mention of when the trading halt would be lifted.