Mary Chia’s FY2026 Auditor Disclaimer: What It Means for Dividends

Mary Chia Holdings (SGX: 5OX) reported a wider FY2026 loss in figures covered by our earlier article. Its annual report and separate auditor statement, released in the 12 September 2026 SGX bundle, add an important qualification: the auditor did not express an opinion on the financial statements for the year ended 31 March 2026 because it could not obtain enough appropriate evidence. [S1, p. 46] [S3, p. 1]

For dividend investors, that changes how confidently the reported figures can be read. It also puts the company’s reliance on shareholder support under closer scrutiny.

What the auditor could not verify

The disclaimer reaches well beyond one accounting estimate. Issues behind the auditor’s FY2025 disclaimer remained unresolved, leaving uncertainty over opening balances and the comparability of FY2026 figures. For FY2026, the auditor also could not satisfy itself about items including inventories, receivables, borrowings, payables and revenue. A disclaimer does not say every reported number is wrong; it says the auditor lacked a basis to give an opinion on the statements as a whole. [S1, p. 46] [S1, p. 47] [S1, p. 48]

The borrowing issue matters directly to cash planning. The group reported S$2.691 million of current borrowings at 31 March 2026, including S$2.239 million owed to third parties. The auditor could not obtain third-party loan confirmations or sufficient documentation for directors’ loans, and could not establish whether further provisions were needed for borrowings, guarantees or related contingent liabilities. The annual report lists third-party loan interest rates of 15% to 36%; those are terms reported at the March year-end, not evidence of a later refinancing outcome. [S1, p. 47] [S1, p. 86]

Support is an undertaking, not operating cash

The group had S$12.581 million of net current liabilities at 31 March 2026. Its FY2026 operating cash outflow was S$2.970 million, while year-end cash and cash equivalents were S$227,000 after restricted cash was excluded. Those figures describe why access to cash matters before a distribution can be considered. [S1, p. 49] [S1, p. 54] [S1, p. 83]

Controlling shareholder Suki Sushi undertook on 11 September 2026 to provide financial support for at least 12 months from authorisation of the FY2026 statements and not demand immediate repayment of amounts owed to it. The directors judged the going-concern basis appropriate. But the auditor said it had not received sufficient evidence, including the FY2027 cash-flow forecast and information to assess Suki Sushi’s ability to provide that support. The undertaking is therefore distinct from demonstrated cash generation by Mary Chia’s operations. [S1, p. 57] [S3, p. 8] [S3, p. 9]

The board also pointed to winding-up proceedings brought against Mary Chia and a subsidiary by lender Fullink Capital. The company said it repaid approximately S$344,000, the undisputed sum, on 21 July 2026; the disputed sums remained contested when the FY2026 statements were authorised. The repayment should not be read as resolution of the proceedings. [S1, p. 87] [S3, p. 9]

What would change the dividend picture?

Mary Chia declared or recommended no dividend for the June 2026 quarter, saying it needed to conserve cash for operational and financial requirements. Its annual report also says the group has no formal dividend policy. [S4, p. 24] [S1, p. 102]

The auditor’s disclaimer does not itself decide future dividends. It does mean the earlier loss and cash-flow correction is only part of the picture. For income-focused shareholders, the useful next evidence is a resolved audit trail for borrowings and other balances, a supported cash-flow forecast, and sustained operating cash generation. Until then, the filings offer no sound basis to assume that shareholder support will turn into a distribution.