NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 30 June 2016
ASL Marine Holdings Ltd.
Annual Report 2016
73
1.
Corporate information
ASL Marine Holdings Ltd. (the “Company”), incorporated in the Republic of Singapore, is a public
limited company listed on the Singapore Exchange Securities Trading Limited.
The registered office and principal place of business of the Company is located at No. 19 Pandan
Road, Singapore 609271.
The principal activity of the Company is investment holding. The principal activities of the subsidiaries
are disclosed in Note 6 to the financial statements.
2.
Summary of significant accounting policies
2.1 Basis of preparation
The consolidated financial statements of the Group and the statement of financial position and
statement of changes in equity of the Company have been prepared in accordance with Singapore
Financial Reporting Standards (“FRS”).
The financial statements have been prepared on the historical cost basis except as disclosed in the
accounting policies below. The financial statements are presented in Singapore Dollar (“SGD” or
“$”) and all values in the tables are rounded to the nearest thousand ($’000) except when otherwise
indicated.
As at 30 June 2016, the Group’s and Company’s total borrowings amounted to $592,186,000 and
$150,000,000 (2015: $543,483,000 and $150,000,000) of which $362,920,000 and $100,000,000
(2015: $220,408,000 and $Nil) were classified as current. Included in this balance is an amount of
$100,000,000 (2015: $Nil) in relation to the Multicurrency Debt Issuance Programme comprising fixed
rate notes which is due for repayment in March 2017 (Note 19). The Group’s loans and borrowings
that are due for repayment in the next 12 months exceed its cash and bank balances as at 30 June
2016 of $24,710,000 (2015: $77,919,000).
Given the persistently low oil prices, companies in the offshore marine sector including oil and
gas companies may continue to cut back on their capital expenditure and delay expansion and
exploration activities. This may result in decreased activities and contracts for yards and vessel
owners. Combined with over supply of vessels in the industry, the impact of lower vessel utilisation,
downward pressures on charter rates and slower repayment from customers have brought greater
uncertainties to the Group and other similar companies in the offshore marine sector. The continuing
weak market conditions will continue to present challenges and greater uncertainties to the Group’s
operations.
The matters set out in the paragraphs above indicates the existence of a material uncertainty which
may affect the validity of the going concern assumption on which the accompanying financial
statements are prepared.
