Link: https://links.sgx.com/1.0.0/corporate-announcements/B49JNBFO2PBDJL7K/69a2e44ef72d28275e1cbd9ca674ac0051ecb92bb32e6522af44684a6434bbff

Summary:

• Asiatic Group’s independent auditor, Foo Kon Tan LLP, issued a disclaimer of opinion on the Group’s audited financial statements for the year ended 31 March 2025.

• The disclaimer arises from two key issues:

  • Uncertainty over control of subsidiary Colben Energy (Cambodia) PPSEZ Ltd (Colben PPSEZ): The Group’s joint venture partner unilaterally removed Asiatic’s representative as director and signatory of Colben PPSEZ in March 2023. The matter is under arbitration, and auditors could not determine if Asiatic still controls Colben PPSEZ, a material component of the Group.

  • Concerns about going concern basis: The Group’s current liabilities exceed its current assets by S$8.9 million. It is awaiting rollover or deferment of S$13.2 million in bank loans and still owes S$3.2 million in legal liabilities. Auditors could not obtain sufficient evidence to confirm that banks would extend these facilities or that obligations to third parties could be settled.

• Despite this, the Board believes the Group can meet obligations over the next 12 months, citing:

  • Successful rollover of ~98% of short-term loans so far and bank willingness to support the Group (term loans expected to auto-roll in July 2025).

  • Positive operational cash flow projections.

  • Ongoing negotiations with the third-party creditor.

• The audit also noted if the Group fails to continue as a going concern, assets and liabilities would require significant reclassification and possible write-downs, which have not been reflected in the financial statements.

• The Company’s shares continue to trade; shareholders are advised to exercise caution and consult professional advisers in case of doubt.

• Arbitration on the control dispute is ongoing under the Singapore International Arbitration Centre. The Company will provide material updates when available.