2 Venture Drive #19-15, Vision Exchange Singapore 608526
- (65) 6411 0688 www.pacificstar-dev.com Business Reg. No: 198203779D
MATERIAL VARIANCES BETWEEN UNAUDITED FINANCIAL STATEMENTS AND AUDITED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021
The board of directors (the "Board") of Pacific Star Development Limited (the "Company" and together with its subsidiaries, the "Group") refers to the Company's unaudited full year financial statements and dividend announcement for the financial year ended 30 June 2021 ("FY2021") dated 30 September 2021 (the "Unaudited Financial Statements") released via SGXNet.
Unless otherwise defined or the context otherwise requires, all terms used herein shall have the same meanings as defined in the Unaudited Financial Statements.
Pursuant to Rule 704(5) of the Listing Manual Section B: Rules of Catalist of the Singapore Exchange Securities Trading Limited (the "SGX-ST"), the Board wishes to announce and clarify certain material variances to the Unaudited Financial Statements following the finalisation of the audit and issuance of the auditor's report dated 16 December 2021 by the Company's external auditors, Messrs Ernst & Young LLP (the "Independent Auditors' Report", and the related audited financial statements are referred to herein as the "Audited Financial Statements"). The details and explanations of the material variances are set out in Appendix A as annexed hereto.
With regard to the Audited Financial Statements and this announcement, shareholders of the Company (the "Shareholders") are advised to read both in conjunction with the Independent Auditors' Report released by the Company in the announcement dated 16 December 2021.
Shareholders are advised to exercise caution when dealing in the shares of the Company. Persons who are in doubt as to the action they should take should consult their stockbrokers, bank managers, solicitors, accountants or other professional advisers.
The Board confirms that to the best of its knowledge, all material disclosures, facts and information have been provided and announced and are not aware of any facts, information or disclosures, the omission of which would make any statement in this announcement or disclosures misleading.
On behalf of the Board
PACIFIC STAR DEVELOPMENT LIMITED
Ying Wei Hsein
Executive Chairman
16 December 2021
This announcement has been prepared by the Company and its contents have been reviewed by the Company's Sponsor, SAC Capital Private Limited (the "Sponsor").
This announcement has not been examined or approved by the Singapore Exchange Securities Trading Limited (the "SGX-ST") and the SGX-ST assumes no responsibility for the contents of this announcement including the correctness of any of the statements or opinions made or reports contained in this announcement.
The contact person for the Sponsor is Mr David Yeong, SAC Capital Private Limited, at 1 Robinson Road #21-00 AIA Tower, Singapore 048542. Telephone number: +65 6232 3210.
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Appendix A
- Consolidated Statement of Comprehensive Income
Group | ||||
2021 | 2021 | Variance | Note | |
$'000 | $'000 | $'000 | ||
(Unaudited) | (Audited) | |||
Revenue | 1,711 | 1,711 | - | |
Cost of sales | (1,075) | (1,007) | 68 | 1 |
Gross profit | 636 | 704 | 68 | |
Other operating income | 403 | 543 | 140 | 1 |
Expenses: | - | |||
Administrative | (6,018) | (6,018) | - | |
Other expenses | (1,679) | (6,152) | (4,473) | 2 |
Finance costs | (20,540) | (20,540) | - | |
Share of results of joint venture | (362) | (362) | - | |
Share of results of associate | (170) | (170) | - | |
Loss before tax | (27,730) | (31,995) | (4,265) | |
Income tax expense | - | - | - | |
Net loss for the financial year | (27,730) | (31,995) | (4,265) | |
Other comprehensive income, net of tax: | ||||
Items that may be reclassified | ||||
subsequently to profit or loss: | ||||
Currency translation differences | ||||
arising from consolidation | (150) | (118) | 32 | 1 & 2 |
(150) | (118) | 32 | ||
Total comprehensive loss for the financial year | (27,880) | (32,113) | (4,233) | |
Net loss for the financial year attributable to: | ||||
Owners of the Company | (27,730) | (31,995) | (4,265) | |
Total comprehensive loss for the financial year | ||||
attributable to: | ||||
Owners of the Company | (27,880) | (32,113) | (4,233) |
Notes
- The variance was due to an audit adjustment to correct accounting errors made in the books of a subsidiary which resulted in the reduction of cost of sales by $68,000, increased other operating income by $140,000, reduced other payables by $207,000 and increased foreign currency translation reserve by $1,000.
- The $4,473,000 increase was due to an audit adjustment relating to impairment of the Group's development properties, Puteri Cove Residences and Quayside ("PCR"), which increased other expenses by $4,473,000, reduced development properties by $4,441,000 and reduced the foreign currency translation reserve by $32,000.
- An audit adjustment of $13,246,000 of impairment was made to the Company's investment in subsidiaries. This resulted in an increase of the Company's accumulated losses and a reduction its investment in subsidiaries. This audit adjustment did not have any impact on the Group's results.
- The $30,000 reduction in trade payables was attributable to a reclassification of accrued interest payable to a contractor from trade payables to other payables.
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Appendix A
- Statement of Financial Position
The Group | The Company | |||||||||
30-Jun-21 | 30-Jun-21 | Variance | Note | 30-Jun-21 | 30-Jun-21 | Variance | Note | |||
$'000 | (Unaudited) | (Audited) | (Unaudited) | (Audited) | ||||||
Non-current assets | ||||||||||
Property, plant | ||||||||||
and equipment | 51 | 51 | - | 2 | 2 | - | ||||
Right-of-use assets | 171 | 171 | - | - | - | - | ||||
Investment | ||||||||||
in subsidiaries | - | - | - | 13,246 | - | (13,246) | 3 | |||
Deferred costs | 272 | 272 | - | - | - | - | ||||
Total non-current assets | 494 | 494 | - | 13,248 | 2 | (13,246) | ||||
Current assets | ||||||||||
Deferred costs | 254 | 254 | - | - | - | - | ||||
Development properties | 133,531 | 129,090 | (4,441) | 2 | - | - | - | |||
Trade receivables | 845 | 845 | - | - | - | - | ||||
Other receivables and | ||||||||||
other current assets | 566 | 566 | - | 3,296 | 3,296 | - | ||||
Fixed deposits pledged | - | - | - | - | - | - | ||||
Cash at bank | 149 | 149 | - | 14 | 14 | - | ||||
Restricted cash | 1,241 | 1,241 | - | - | - | - | ||||
Total current assets | 136,586 | 132,145 | (4,441) | 3,310 | 3,310 | - | ||||
Total assets | 137,080 | 132,639 | (4,441) | 16,558 | 3,312 | (13,246) | ||||
Non-current liabilities | ||||||||||
Loans and borrowings | 46,671 | 46,671 | - | - | - | - | ||||
Lease liabilities | - | - | - | - | - | - | ||||
Trade payables | 51 | 51 | - | - | - | - | ||||
Other payables | 622 | 621 | (1) | - | - | - | ||||
Total non-current | ||||||||||
liabilities | 47,344 | 47,343 | (1) | - | - | - | ||||
Current liabilities | ||||||||||
Loans and borrowings | 108,807 | 108,807 | - | - | - | - | ||||
Lease liabilities | 200 | 200 | - | - | - | - | ||||
Trade payables | 12,005 | 11,975 | (30) | 4 | - | - | - | |||
Other payables | 37,743 | 37,566 | (177) | 1 & 4 | 18,844 | 18,844 | - | |||
Deferred income | 39 | 39 | - | 17 | 17 | - | ||||
Joint venture | - | - | - | - | - | - | ||||
Associate | - | - | - | - | - | - | ||||
Current tax liabilities | 6,011 | 6,011 | - | - | - | - | ||||
Total current liabilities | 164,805 | 164,598 | (207) | 18,861 | 18,861 | - | ||||
Total liabilities | 212,149 | 211,941 | (208) | 18,861 | 18,861 | - | ||||
Net liabilities | (75,069) | (79,302) | (4,233) | (2,303) | (15,549) | (13,246) | ||||
Capital and reserves | ||||||||||
attributable to | ||||||||||
owners of the | ||||||||||
Company | ||||||||||
Share capital | 47,801 | 47,801 | - | 197,055 | 197,055 | - | ||||
Treasury shares | - | - | - | (513) | (513) | - | ||||
Accumulated losses | (124,053) | (128,318) | (4,265) | 1 & 2 | (198,845) | (212,091) | (13,246) | 3 | ||
Foreign currency | ||||||||||
translation reserve | 1,183 | 1,215 | 32 | 1 & 2 | - | - | - | |||
Capital deficiency | ||||||||||
attributable to owners | ||||||||||
of the Company and | ||||||||||
total capital deficiency | (75,069) | (79,302) | (4,233) | (2,303) | (15,549) | (13,246) |
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Appendix A
(iii) Consolidated cash flow statement
The Group | ||||
2021 | 2021 | Variance | Note | |
$'000 | $'000 | $'000 | ||
(Unaudited) (Audited) | ||||
Cash flows from operating activities | ||||
Loss before income tax | (27,730) | (31,995) | (4,265) | 1 & 2 |
Adjustments for: | ||||
Finance costs | 20,540 | 20,540 | - | |
Write down of development properties | - | 4,473 | 4,473 | 2 |
Net effects of cancallation of sale and purchase agreements | 1,617 | 1,617 | - | |
Share of results of joint venture | 362 | 362 | - | |
Depreciation of right-of-use assets | 253 | 253 | - | |
Amortisation of deferred costs | 206 | 206 | - | |
Share of results of associate | 170 | 170 | - | |
Depreciation of property, plant and equipment | 25 | 25 | - | |
Amortisation of defered income | (139) | (139) | - | |
Gain on disposal of property, plant and equipment | (69) | (69) | - | |
Interest income | (68) | (68) | - | |
Reversal of expected credit losses on trade receivables | (9) | (9) | - | |
Operating cash flow before working capital changes | (4,842) | (4,634) | 208 | |
Movement in working capital: | ||||
Changes in trade, other receivables and other current assets | 2,027 | 1,924 | (103) | 5 |
Changes in development properties | 394 | 395 | 1 | |
Changes in deferred income | - | 102 | 102 | 5 |
Changes in trade and other payables | 299 | 114 | (185) | 1 & 6 |
Changes in deferred costs | (66) | (66) | - | |
Effects of currency translation on working capital | 460 | 460 | - | |
Cash flows used in operations | (1,728) | (1,705) | 23 | |
Interest income received | 68 | 68 | - | |
Finance costs paid | (2,066) | (2,089) | (23) | 6 |
Income tax paid | (685) | (685) | - | |
Net cash used in operating activities | (4,411) | (4,411) | - | |
Cash flows from investing activities | ||||
Proceeds from disposal of property, plant and equipment | 69 | 69 | - | |
Funding to joint venture | (362) | (362) | - | |
Funding to associate | (170) | (170) | - | |
Purchase of property, plant and equipment | (7) | (7) | - | |
Net cash used in investing activities | (470) | (470) | - | |
Cash flows from financing activities | ||||
Net proceeds from bank loan | 1,932 | 1,932 | - | |
Repayment of lease liabilities | (253) | (253) | - | |
Movement in restricted cash | (117) | (117) | - | |
Net cash generated from financing activities | 1,562 | 1,562 | - | |
Net decrease in cash and cash equivalents | (3,319) | (3,319) | - | |
Effect of currency translation on cash and cash equivalents | (11) | (11) | - | |
Cash and cash equivalents at beginning of financial year | 905 | 905 | - | |
Cash and cash equivalents at end of financial year | (2,425) | (2,425) | - |
Notes(cont'd)
- The increase was largely attributable to the adjustment to account for the cash receipt of deferred income.
- The $23,000 was attributable the correction of errors of the effects of accrued interest classified under other payables used to derive cash flow.
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Pacific Star Development Ltd. published this content on 16 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 December 2021 16:48:08 UTC.