Response to SGX Queries::

SGX Queries

Company's Responses

1. The Group has non-current Other

Receivables balance of S$580k.

Please disclose:

(i)

the breakdown and nature of

The non-current other receivables of S$580k consist of interest

the

Group's

other

receivable for the loan to an associated company for its working

receivables;

capital purposes.

(ii)

the

Board's assessment of

The Board does not expect credit losses arising from the non-

the recoverability of the non-

current other receivables as they are repayable in cash upon the

current other receivables.

completion of the associated company's property development

project, which is expected to obtain its temporary occupation

permit within the next 12 months.

(i) the breakdown and nature of

30 Jun 2021

the current trade receivables

$'000

balance in the current assets

Trade receivables (gross)

775

category;

Retention receivables (gross)

915

1,690

Provision for impairment

(804)

Total

886

(ii) aging of the Group's current

Aging of trade receivables:

trade receivables

30 Jun 2021

$'000

Current

180

1 - 30 days past due

26

31 - 60 days past due

50

61 - 90 days past due

3

More than 90 days past due

516

Total

775

Provision for impairment

(222)

Net trade receivables

553

SGX Queries

Company's Responses

Aging of retention receivables:

30 Jun 2021

$'000

Current

333

More than 90 days past due

582

Total

915

Provision for impairment

(582)

Net retention receivables

333

Trade receivables are non-interest bearing and are generally on

30 to 90 days' credit terms. Retention receivables will only be due

after the defect liability periods of the respective contracts.

Trade receivables which were past due for more than 90 days

and impaired amounting to $222k pertains to sales reported prior

to the financial year ended 31 December ("FY") 2020 and the

remaining trade receivables balances of $553k pertains to sales

reported during FY2020 and FY2021.

Out of the $553k of trade receivables of which no provision for

impairment has been made, $453k were either collected

subsequent to 30 June 2021 up till 19 August 2021 or is

deductible against corresponding payables as at 30 June 2021.

For the remaining balance of trade receivables which amounts to

$100k (the "Balance Amount"), the Group is of the view that they

are collectible. The remaining retention receivables amounting to

$333k are still not due yet and hence no provision for impairment

has been made.

(iii)

the Company's plans to

The management reviews the trade receivables ledgers monthly

recover

these

trade

and follows up with the respective project managers and/or

receivables

and

what

were

customers on collection matters. If overdue debts remain unpaid,

the actions taken to recover

the Group will stop transacting with the customers until the old

them;

debts are settled. Trade receivables are written off when there is

no reasonable expectation of recovery, such as a debtor failing to

engage in a repayment plan with the Group after various attempts

to engage the debtor. The Group may also take legal action to

recover the outstanding trade receivables and retention

receivables, if necessary.

(iv)

whether

they

are

major

5 of the Group's major customers accounted for about 6% of total

customer(s) and whether the

trade receivables and retention receivables of $1,690k as at 30

Company

continues

to

June 2021. Considering the payment track record of these major

transact

with

these

customers, no allowance for impairment was made for the

customer(s);

amounts due as at 30 June 2021 and the Group continues to

transact with them.

(v)

How long are the debts

Please refer to the response to query 2(ii) above.

outstanding

and

in

which

period

the

sales

were

reported;

(vi)

The Board's

opinion on the

For trade receivables and contract assets (including retention

reasonableness

of

the

receivables), the Group applies a simplified approach in

methodologies

used

to

calculating expected credit losses ("ECL"). Therefore, the Group

determine the value of the

does not track changes in credit risk, but instead recognises a

impairment

of

the

trade

loss allowance based on lifetime ECLs at each reporting date.

receivables; and

The Group has established a provision matrix that is based on its

SGX Queries

Company's Responses

historical credit loss experience, adjusted for forward-looking

factors specific to the debtors and the economic environment.

In accordance with the ECL assessment methodology adopted by

the management in the assessment of the recoverability of the

trade receivables and retention receivables, if there is any

indication of impairment, appropriate provisions would be made.

Based on the information available as at the date of the unaudited

interim financial statement as at 30 June 2021, the Board has

adopted the assessment on the recoverability of the trade

receivables and retention receivables made by the management

and is satisfied with the reasonableness of the methodologies

used to determine the value of the impairment of the trade

receivables and retention receivables, and concurs with the

management's view that there is no indication to further impair the

remaining trade receivables and retention receivables as at 30

June 2021.

(vii) The Board's assessment of

The Board does not expect material credit losses arising from the

the

recoverability

of

the

Balance Amount, as detailed in the response to query 2(vi) above.

remaining trade receivables.

3. Given

the

Group's

significant

The Board expects that the Company is able to meet its current

current liabilities of S$5.6m, and

liabilities and fulfill its payment obligations in the next 12 months

cash and bank balance of only

as its wholly owned subsidiary has sufficient unutilised committed

S$0.4m, and noting that the

banking facilities for it to drawdown on when necessary. The

Company

incurred

losses

of

banking facilities consist of a revolving credit facility which is

S$0.4m in HY2021, please

secured against the Group's investment property that has a fair

disclose the Board's assessment

value of $20 million as at 30 June 2021.

(i) whether

the

Company's

current assets are adequate to

The Company does not have any debt repayment plans.

meet

the

Company's

current

liabilities, including its bases of

assessment; and (ii) how

the

Company intends to fulfil its

significant payment obligations in

the next 12 months. Where the

Company has worked out debt

repayment plans to fulfil its debt

obligations, please disclose if the

Company is on track to fulfilling

these obligations.