Jasper Investments: Auditor cites material uncertainty over going concern

U.S. one-dollar currency notes; taken September 2018.U.S. one-dollar currency notes; taken September 2018.

Jasper Investments filed Friday comments from its independent auditors, Foo Kon Tan LLP, citing a material uncertainty over the company’s ability to continue as a going concern.

The auditor noted the company did not generate any revenue for the fiscal year ended 31 March 2021, and incurred a total comprehensive loss of US$293,000, with net cash used in operating activities of US$70,000. Net current liabilities at end-March were US$523,000, the auditor noted.

“The abovementioned conditions indicate the existence of a material uncertainty which may cast significant doubt about the group’s and the company’s ability to continue as a going concern,” the auditor said in the notes filed to SGX Friday.

“The viability of the group’s and the company’s operations to continue as a going concern at least for the next twelve months from the date of the financial statements is dependent on positive cash flows from operations to be generated from a roll-out of a business plan during the financial year beginning 1 April 2021, and completion of the share subscription,” the auditor said.

The auditor added it was unable to obtain sufficient evidence on the likely ability of the group to generate significant cash flows and to complete the share subscription to form a view on whether preparing the financial statement son a going concern basis was appropriate.

The statement filed to the exchange said Jasper Investments’ directors believe the use of the going concern assumption is appropriate, citing the new business plan and the completion of the share subscription.

Read the auditor’s statement filed to the exchange.