Asiatravel.com has prepared its 2018 financial statements on a going-concern basis, despite its auditors, Ernst & Young, including a disclaimer of opinion, citing material uncertainty, the dormant company said in a filing to SGX Thursday.
The company said it made assumptions to use the going-concern basis:
- Asiatravel said it reached a deal with some creditors, subject to its shares resuming trade, to convert liabilities into equity
- The company said it would sell all of its money-losing subsidiaries, except for Star-travel.com, for a nominal S$7.00; the disposal will be subject to shareholder approval
- Sky Smart Venture has agreed to make a facility of up to S$1.6 million, which may be converted into new shares, available to Asiatravel
- The company is in talks with Sky Smart Venture to agree to not seek repayment pending Asiatravel’s application to resume trading, and to convert the outstanding amount into shares if approval is received.
Asiatravel said it is currently focusing on gaining approval to resume trading of its shares; it has also sought an extension of time to file its financial statements for 2018.
The independent auditors, Ernst & Young, however, said they did not express an opinion on the 2018 financial statements.
“The financial statements of the group and the balance sheet and statement of changes in equity of the company do not show a true and fair view of the financial positions of the group and the company as at 31 December 2018,” the auditors said in the statement included by Asiatravel in its filing.
The auditors’ statement also noted the loss of accounting data and financial records of the company and its subsidiaries after their operations ceased in 2018.
“We were unable to obtain all relevant information and supporting documents necessary to complete our audit,” the statement said. “As we were not able to obtain all relevant information and explanations, we were neither able to determine the completeness and accuracy, nor were we able to quantify the extent of further adjustments or disclosures that might be necessary.”
The note added: “We have not been able to obtain sufficient appropriate audit evidence to satisfy ourselves on the appropriateness of the use of the going concern assumption in the preparation of these financial statements.”