ASL MARINE HOLDINGS LTD.

(Incorporated in the Republic of Singapore)

Co. Reg. No. 200008542N

UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR

THE FOURTH QUARTER ENDED 30 JUNE 2022

QUARTERLY FINANCIAL STATEMENTS

Pursuant to Rule 705(2C) of the Singapore Exchange Securities Trading Limited (“SGX-ST”)
Listing Manual, the Company is required by SGX-ST to continue to announce its quarterly
financial statements.

TABLE OF CONTENTS

Page

(I) UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL

STATEMENTS

A Statements of Financial Position 2

B Consolidated Income Statement 3

C Consolidated Statement of Comprehensive Income 4

D Statements of Changes in Equity 5

E Consolidated Statement of Cash Flows 8

F Selected Notes to the Condensed Consolidated Interim Financial Statements 10

(II) OTHER INFORMATION REQUIRED UNDER APPENDIX 7.2 OF THE LISTING

MANUAL OF SGX-ST

A Review of Group Performance 31

B Variance from Prospect Statement 39

C Outlook and Prospect 40

D Dividend 41

E Interested Person Transactions 42

F Confirmation pursuant to Rule 720(1) 42

G Breakdown of Sales 42

H Disclosure pursuant to Rule 704(13) 43

I Use of Proceeds 44

H Use of Proceeds 39

Page 1 of 44
A. Statements of Financial Position

Group Company
Note 30-Jun-22 30-Jun-21 30-Jun-22 30-Jun-21
$'000 $'000 $'000 $'000
Non-current assets
Property, plant and equipment 3 375,228 395,623 - -
Right-of-use assets 8,856 10,780 - -
Investment in subsidiaries - - 38,166 39,532
Investment in joint ventures and associates 2,116 2,083 - -
Intangible assets 4 - 1,991 - -
Other receivables 7 - - 5,167 4,650
Finance lease receivables 4,580 6,441 - -
390,780 416,918 43,333 44,182
Current assets
Inventories 5 89,721 82,668 - -
Contract assets 6 21,121 20,636 - -
Trade and other receivables 7 51,528 55,744 236,019 237,168
Prepayments 3,660 3,779 190 185
Finance lease receivables 5,080 2,201 - -
Derivative financial instruments 1 - - -
Cash and bank balances 22,072 26,533 3,700 4,407
193,183 191,561 239,909 241,760

Current liabilities
Trade and other payables 8 149,436 124,338 82,873 82,044
Contract liabilities 6 25,883 15,701 - -
Trust receipts 9 8,767 5,991 - -
Interest-bearing loans and borrowings 9 37,364 37,620 10,536 10,436
Lease liabilities 1,658 2,069 - -
Derivative financial instruments 1 - - -
Income tax payables 7,595 6,451 14 14
230,704 192,170 93,423 92,494

Net current (liabilities)/ assets (37,521) (609) 146,486 149,266

Non-current liabilities
Other payables 8 1,494 1,280 - -
Other liabilities 2,524 3,381 - -
Contract liabilities 6 8,144 15,246 - -
Interest-bearing loans and borrowings 9 262,785 285,014 156,734 160,621
Lease liabilities 3,635 5,387 - -
Deferred tax liabilities 6,922 8,630 - -
285,504 318,938 156,734 160,621
Net assets 67,755 97,371 33,085 32,827

Equity attributable to owners

of the Company
Share capital 10 108,140 108,133 108,140 108,133
Treasury shares (923) (923) (923) (923)
Reserves (38,634) (9,042) (74,132) (74,383)
68,583 98,168 33,085 32,827
Non-controlling interests (828) (797) - -
Total equity 67,755 97,371 33,085 32,827

Page 2 of 44
B. Consolidated Income Statement

Group
3 months ended 12 months ended
30 June 30 June
4Q 4Q Inc/ Inc/
Note FY2022 FY2021 (Dec) FY2022 FY2021 (Dec)
$'000 $'000 % $'000 $'000 %

Revenue 11 59,849 46,894 27.6 235,556 192,960 22.1

Cost of sales (64,931) (47,013) 38.1 (235,681) (194,174) 21.4
Gross loss (5,082) (119) Nm (125) (1,214) (89.7)
Other operating income 12 7,416 4,168 77.9 11,569 12,102 (4.4)
Administrative expenses (5,274) (4,359) 21.0 (17,135) (17,031) 0.6
Other operating expenses 13 - (10,546) (100.0) (588) (12,795) (95.4)
Finance costs 14 (6,188) (6,050) 2.3 (23,883) (24,519) (2.6)
(Reversal of)/ impairment losses on
financial assets (307) 7,346 Nm (1,502) 4,625 Nm
Share of results of joint ventures
and associates (1,084) (567) 91.2 (146) (1,777) (91.8)
Loss before tax 15 (10,519) (10,127) 3.9 (31,810) (40,609) (21.7)
Income tax credit/ (expenses) 16 1,165 3,504 (66.8) (385) 3,710 Nm
Loss for the period/ year (9,354) (6,623) 41.2 (32,195) (36,899) (12.7)

Attributable to:
Owners of the Company (9,447) (6,415) 47.3 (32,273) (35,015) (7.8)
Non-controlling interests 93 (208) Nm 78 (1,884) Nm
(9,354) (6,623) 41.2 (32,195) (36,899) (12.7)

Loss per share 17

(cents per share)
Basic (1.50) (1.02) 47.1 (5.12) (5.56) (7.9)
Diluted (1.50) (1.02) 47.1 (5.12) (5.56) (7.9)

Adjusted EBITDA* for the

6,457 12,062 (46.5) 38,964 48,173 (19.1)
period/ year

Notes:
* Adjusted EBITDA is computed based on earnings of the Company and its subsidiaries before
interest, tax, depreciation, amortisation, and after adjusting for impairment and write-off of
financial and non-financial assets and any other non-cash flow items.

Nm: Not meaningful

Page 3 of 44
C. Consolidated Statement of Comprehensive Income

Group
3 months ended 12 months ended
30 June 30 June
4Q 4Q 9M 9M
FY2022 FY2021 FY2022 FY2021
$'000 $'000 $'000 $'000

Loss for the period/ year (9,354) (6,623) (32,195) (36,899)

Items that may be reclassified
subsequently to profit or loss:
Translation differences relating to
financial statements of foreign
subsidiaries, net of tax (i) 505 (235) 2,135 986
Share of other comprehensive income
of joint ventures and associates 103 (12) 127 (208)
Realisation of foreign currency
translation reserves upon dissolution of
subsidiaries - (89) (401) (89)
Net fair value changes to cash flow hedges (ii) (1) - (1) -
Items that will not be
reclassified subsequently
to profit or loss:
Re-measurement of defined benefit plan 712 127 712 127
Other comprehensive income
for the period/ year, net of tax 1,319 (209) 2,572 816
Total comprehensive income
for the period/ year (8,035) (6,832) (29,623) (36,083)

Attributable to:
Owners of the Company (8,045) (6,622) (29,592) (34,334)
Non-controlling interests 10 (210) (31) (1,749)
(8,035) (6,832) (29,623) (36,083)

Note:
(i) The movement in foreign currency translation reserves arose from the consolidation of subsidiaries
whose functional currencies are United States Dollar (“USD”), Euro (“EUR”) and Indonesian Rupiah
(“IDR”).
(ii) The fair value gain on cash flow hedges was primarily due to fair value adjustments on foreign currency
forward contracts entered for shipbuilding contracts.

Page 4 of 44
D. Statements of Changes in Equity

For the year ended 30-Jun-22

Attributable to owners of the Company
Equity
Foreign attributable
currency to owners of Non-
Group Share Treasury translation Hedging Warrant Accumulated Total the controlling Total
capital shares reserve reserve reserve losses reserves Company interests Equity
$'000 $'000 $'000 $’000 $'000 $'000 $'000 $'000 $'000 $'000
FY2022
At 1-Jul-21 108,133 (923) 411 - 897 (10,350) (9,042) 98,168 (797) 97,371
Loss for the year - - - - - (32,273) (32,273) (32,273) 78 (32,195)
Other comprehensive income
Translation differences
relating to financial - - 2,260 - - - 2,260 2,260 (125) 2,135
statements of foreign
subsidiaries, net of tax
Share of other
comprehensive income of - - 111 - - - 111 111 16 127
joint ventures and associates
Realisation of foreign
currency translation
- - (401) - - - (401) (401) - (401)
reserves upon dissolution of
subsidiaries
Re-measurement of defined
- - - - - 712 712 712 - 712
benefit plans
Net fair value changes to cash
- - - (1) - - (1) (1) - (1)
flow hedges
- - 1,970 (1) - 712 2,681 2,681 (109) 2,572

Total comprehensive income - - 1,970 (1) - (31,561) (29,592) (29,592) (31) (29,623)
for the year
Contributions by owners
Conversion of warrants 7 - - - - - - 7 - 7

At 30-Jun-22 108,140 (923) 2,381 (1) 897 (41,911) (38,634) 68,583 (828) 67,755

Page 5 of 44
D. Statements of Changes in Equity (Cont’d)

For the year ended 30-Jun-21

Attributable to owners of the Company
Foreign Equity
currency Accumulated attributable Non-
Group Share Treasury translation Warrant Profits/ Total to owners of controlling Total
capital shares reserve reserve (losses) reserves the Company interests Equity
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
FY2021
At 1-Jul-20 108,056 (923) (143) 899 24,538 25,294 132,427 952 133,379
Loss for the year - - - - (35,015) (35,015) (35,015) (1,884) (36,899)
Other comprehensive income
Translation differences
relating to financial - - 826 - - 826 826 160 986
statements of foreign
subsidiaries, net of tax
Share of other
comprehensive income of - - (183) - - (183) (183) (25) (208)
joint ventures and associates
Realisation of foreign
currency translation
- - (89) - (89) (89) - (89)
reserves upon dissolution -
of a subsidiary
Re-measurement of defined
- - - 127 127 127 - 127
benefit plans
- - 554 - 127 681 681 135 816

Total comprehensive
- - 554 - (34,888) (34,334) (34,334) (1,749) (36,083)
Income for the year
Contributions by to owners
Conversion of warrants 77 - - (2) - (2) 75 - 75

At 30-Jun-21 108,133 (923) 411 897 (10,350) (9,042) 98,168 (797) 97,371

Page 6 of 44
D. Statements of Changes in Equity (Cont’d)

For the years ended 30-Jun-22 and 30-Jun-21

Share Treasury Warrant Accumulated Total Total
COMPANY capital shares reserve losses/(profit) reserves equity
$'000 $'000 $'000 $'000 $'000 $'000
FY2022
At 1-Jul-21 108,133 (923) 897 (75,280) (74,383) 32,827
Profit for the year, representing total
comprehensive income for the year - - - 251 251 251

Contributions by owners
Conversion of warrants 7 - - - - 7

At 30-Jun-22 108,140 (923) 897 (75,029) (74,132) 33,085

FY2021
At 1-Jul-20 108,056 (923) 899 (58,951) (58,052) 49,081
Loss for the year, representing total
comprehensive income for the year
- - - (16,329) (16,329) (16,329)
Contributions by owners
Conversion of warrants 77 - (2) - (2) 75
At 30-Jun-21 108,133 (923) 897 (75,280) (74,383) 32,827

Page 7 of 44
E. Consolidated Statement of Cash Flows

Group
12 months ended 30 June
FY2022 FY2021
$'000 $'000
Cash flows from operating activities
Loss before tax (31,810) (40,609)
Adjustments for:
Amortisation of intangible assets 296 308
Depreciation of property, plant and equipment 44,731 55,450
Depreciation of right-of-use assets 2,399 3,212
Gain on disposal of assets classified as held for sale - (981)
Gain on disposal of property, plant and equipment (3,921) (5,291)
Gain on dissolution of subsidiaries (401) (89)
Loss/(gain) on remeasurement of lease liabilities 60 (537)
Inventories written off - 13
(Reversal of)/ impairment losses on financial assets (net):
-amount due from:
• joint ventures and associates (2,554) (5,354)
• related parties - 42
-contract assets 55 69
-other receivables (297) 108
-trade receivables (third parties) 4,298 510
Impairment losses/ (reversal of impairment losses) on
non-financial assets:
-intangible assets 1,626 -
-inventories - 6,578
-property, plant and equipment (3,660) 2,150
Interest income (677) (602)
Interest expense 23,883 24,519
Property, plant and equipment written off 528 2
Reversal of provision for warranty (net) (7) (9)
Provision/(reversal of provision) for pension liabilities 110 (20)
Share of results of joint venture and associates 146 1,777
Operating cash flows before changes in working capital 34,805 41,246
Changes in working capital:
Inventories (4,193) (2,785)
Contract assets and liabilities 3,716 24,726
Trade and other receivables (1,882) 2,006
Prepayments 119 (289)
Trade and other payables 24,366 (19,418)
Finance lease receivables 170 (3,142)
Other liabilities (97) (97)
Balances with related parties (trade) (1,108) 3,207
Cash flows generated from operations 55,896 45,454
Interest received from finance lease receivables 233 380
Income tax paid (725) (6)
Net cash flows generated from operating activities 55,404 45,828

Cash flows from investing activities

Interest received 23 38
Purchase of assets classified as held for sale - (1,000)
Purchase of property, plant and equipment (18,229) (18,896)
Proceeds from disposal of property, plant and equipment 5,584 13,433
Proceeds from disposal of assets classified as held for sale - 4,800
Prepaid rent for a finance lease (549) -
Movement in balances with related parties (non-trade) 1,038 182
Net cash flows used in investing activities (12,133) (1,443)

Page 8 of 44
E. Consolidated Statement of Cash Flows (Cont’d)

Group
12 months ended 30 June
FY2022 FY2021
$'000 $'000

Cash flows from financing activities

Interest paid (11,196) (12,660)
Repayment of interest-bearing loans and borrowings (37,606) (25,599)
Proceeds from interest-bearing loans and borrowings - -
Principal repayment of lease liabilities (2,037) (1,580)
Repayment of trust receipts (26,101) (29,063)
Proceeds from trust receipts 28,869 15,901
Proceeds from issuance of ordinary shares
upon conversion of warrants 7 75
Cash and bank balances (restricted use) (2,226) 5,107
Net cash flows used in financing activities (50,290) (47,819)

Net decrease in cash and cash equivalents (7,019) (3,434)

Cash and cash equivalents at beginning of year 14,125 17,650
Effects of exchange rate changes on cash and
cash equivalents 332 (91)
Cash and cash equivalents at end of year (Note 1) 7,438 14,125

Note 1:
Cash and cash equivalents comprise the followings:
Bank balances and cash 22,072 26,533
Less: Restricted cash
- Cash at banks (14,634) (12,408)
Cash and cash equivalents at end of year 7,438 14,125

The Group's restricted cash has been set aside for specific use with respect to certain shipbuilding financing
and banking facilities granted to the Group.

Page 9 of 44
F. Selected Notes to the Condensed Consolidated Interim Financial Statements

1. Corporate information

ASL Marine Holdings Ltd. (the “Company”), incorporated in the Republic of Singapore on 4
October 2000, is a public limited company listed on the Mainboard of the Singapore Exchange
Securities Trading Limited (“SGX-ST”).

These condensed consolidated interim financial statements as at and for the three months
and year ended 30 June 2022 comprise the Company and its subsidiaries (collectively, the
“Group”).

The principal activity of the Company is investment holding. The principal activities of the
subsidiaries are those relating to shipbuilding, shiprepair and conversion, shipchartering,
dredge engineering and other marine related services.

The condensed consolidated interim financial statements have not been audited nor reviewed
by the Company’s auditors.

2. Basis of preparation

2.1 Statement of compliance

The condensed consolidated interim financial statements for the three months and year ended
30 June 2022 have been prepared in accordance with Singapore Financial Reporting
Standards (International) (“SFRS(I)”) 1-34 Interim Financial Reporting issued by the
Accounting Standards Council Singapore, and should be read in conjunction with the Group’s
last annual consolidated financial statements as at and for the year ended 30 June 2021. The
condensed consolidated interim financial statements do not include all the information
required for a complete set of financial statements. However, selected explanatory notes are
included to explain events and transactions that are significant to an understanding of the
changes in the Group’s financial position and performance of the Group since the last annual
financial statements for the year ended 30 June 2021.

The accounting policies adopted are consistent with those of the previous financial year which
were prepared in accordance with SFRS(I)s, except for the adoption of new and amended
standards as set out in Note 2.5.

2.2 Basis of measurement

The condensed consolidated interim financial statements have been prepared on the historical
cost basis except as otherwise disclosed.

The condensed consolidated interim financial statements are presented in Singapore dollars
(“SGD” or “$”), which is the Company’s functional currency, and all values in the tables are
rounded to the nearest thousand ($’000) except when otherwise indicated.

2.3 Going concern basis of preparation of financial statements

The Group incurred loss after tax of $32,195,000 (FY2021: $36,899,000) for the financial year
ended 30 June 2022 (“FY2022”) and as at 30 June 2022, the Group’s current liabilities
exceeded its current assets by $37,521,000 (30 June 2021: $609,000). As at 30 June 2022,
the Group’s and Company’s total borrowings amounted to $308,916,000 and $167,270,000
(30 June 2021: $328,625,000 and $171,057,000) of which $46,131,000 and $10,536,000 (30
June 2021: $43,611,000 and $10,436,000) were classified as current liabilities respectively.

Page 10 of 44
2.3 Going concern basis of preparation of financial statements (Cont’d)

The Group’s businesses are capital intensive. As at 30 June 2022, the aggregate value of
property, plant and equipment and right-of-use assets amounted to $384,084,000, which
represented 66% of its total assets. The majority of these assets were financed through bank
loans, bonds and lease liabilities of $305,442,000, which represented 59% of its total liabilities
as of 30 June 2022. The Group has been generating positive operating cash flows in fulfilling
its debt repayment obligations, with majority of its debts maturing in 2025 and beyond.

The management and directors of the Company, having assessed the available sources of
liquidity and funding, believe that the Group and the Company can continue as a going
concern for the foreseeable future. In analysing the validity of the going concern basis applied
in the preparation of the condensed consolidated interim financial statements of the Group
and the Company, the following factors were considered:

(i) The Group is able to generate sufficient operating cash flows from operations to meet
its working capital needs. This is supported by positive Earnings before Interest, Tax,
Depreciation, Amortisation and after adjusting for impairments and any other non-cash
flow items of $38,964,000 for FY2022 (FY2021: $48,173,000). The consolidated net
cash flows generated from operating activities have been consistently positive, and the
Group has been meeting all its short-term obligations. The banking facilities secured
since August 2019 from its principal lenders provide the Group with short term trade
financing when needed;

(ii) Management has provided consistent and conscientious efforts in cost controls and
cash flow enhancement measures, which include:
- Planning and keeping track of project budget and setting performance parameters;
- Regular operations review and close monitoring of project progress, schedule, cost
and profitability;
- Review by the management on all purchases and capital expenditures;
- Diversify supply sources for competitive procurement;
- Cutting overheads and administrative expenses which include measures such as
redesigning of job scope for employees and controlling of headcount to reduce
expenses of recurring nature;
- Close collaboration with contractors and suppliers to improve working capital
management, such as on credit terms, payment plans and debt settlements;
- Stricter customer credit control;
- Strengthening of coordination among marketing, operations and finance
departments for better credit control; and
- Disposal of vessels held as inventories to pare down borrowings and increase the
availability of working capital.

(iii) Continuing support from principal lenders including trade line and project financing
which provides a strong base in sustaining the businesses of the Group. The principal
lenders had also granted the Group waivers from complying with certain financial
covenant, a further request for the waiver may be sought, as appropriate;

(iv) Management has also considered the various COVID-19 support measures aided by
the Singapore government, which included (a) the Jobs Support Scheme, (b) Foreign
Worker Levy Rebates, and (c) enhanced financing support under the Enterprise
Financing Scheme as announced in the Singapore Budgets 2021; and

Page 11 of 44
2.3 Going concern basis of preparation of financial statements (Cont’d)

(v) The controlling shareholders of the Company remain supportive to the Company and
the Group with their injection of funds during the Company’s last two fund raising
exercises in December 2016 and July 2019. The controlling shareholders remain
committed to funding the Group, amongst others, provided an unsecured and interest-
free loan of $6,620,000 in October 2017 which remained unpaid as at reporting date.

2.4 Uses of estimates and judgements

The preparation of the condensed consolidated interim financial statements requires

management to make judgements, estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities. These are assessed on an on-going
basis and are based on experience and relevant factors, including expectations of future
events that are believed to be reasonable under the circumstances. However, uncertainty
about these assumptions and estimates could result in outcomes that require a material
adjustment to the carrying amount of the asset or liability affected in the future periods.

Revisions to accounting estimates are recognised in the period in which the estimates are
revised and in any future periods affected.

The critical judgement and key sources of estimation uncertainty made by the management
remains unchanged from audited consolidated financial statements for the financial year
ended 30 June 2021, except as disclosed below:

Estimated residual value of vessels

The property, plant and equipment of the Group are initially recorded at cost, subsequent
to recognition, they are measured at cost less accumulated depreciation and any
accumulated impairment losses. Depreciation of an asset begins when it is available for use
and is computed on a straight-line basis over the estimated useful lives of the assets. With
effect from 1 July 2021, depreciation of the Group’s vessels is based on the cost of an asset
less its residual value.

During the current financial year, the Group conducted an operational review and assessment
of the residual value of its vessels. In determining the residual values of vessels, management
considers factors such as market prices of scrap metal and type of vessels. Accordingly, the
Group estimated the residual value of vessels.

The revision in estimate has been applied on a prospective basis from 1 July 2021. Changes
in above-mentioned factors could potentially impact the residual value of these assets, and
thereby resulting in changes in future depreciation charges. Such changes are accounted for
prospectively.

The effect of the above revision on depreciation charge, included in “cost of sales”, in current
and future financial years are as follows:

FY2022 FY2023 FY2024 FY2025 FY2026

Group $’m $’m $’m $’m $’m
Decrease in depreciation charge 7 6 4 3 2

Page 12 of 44
2.5 New and amended standards

During the current financial year, the Group and the Company have adopted new or amended
Singapore Financial Reporting Standards (International) (“SFRS(I)”) which took effective for
annual periods beginning on or after 1 July 2021.

The adoption of the new accounting standards does not have any significant impact on the
financial statements of the Group and of the Company for the year ended 30 June 2022.
Accordingly, it has no material impact on the loss per share of the Group and the Company.

3. Property, plant and equipment

Group
30-Jun-22 30-Jun-21
$’000 $’000
Balance as at 1 July 395,623 443,928
Additions 19,668 22,270
Disposals/ Write-off (3,786) (8,144)
Depreciation charge (45,767) (54,210)
Reversal of impairment loss/
3,660 (2,150)
(impairment loss) on plant and equipment
Translation differences 5,830 (6,071)
Balance as at 30 June 375,228 395,623

Impairment of property, plant and equipment

During the financial year, the Group carried out a review of the recoverable amount of its
property, plant and equipment. In view of the improved market outlook of certain vessels, a
net reversal of impairment charge of $3,660,000 (2021: impairment of $2,150,000),
representing the write-back/ (write-down) of these property, plant and equipment to their
recoverable amounts, were recognised in “other operating income/ (expenses)” line in the
consolidated income statement. The recoverable amounts of these property, plant and
equipment were based on fair value less cost of disposal.

The depreciation charge for the period/ year as shown in profit or loss is arrived at as follows:
Group
3 months ended 30 June 12 months ended 30 June
4Q FY2022 4Q FY2021 FY2022 FY2021
$’000 $’000 $’000 $’000
Depreciation charge for the period/ year 11,466 13,061 45,767 54,210
Depreciation included in construction work-in-progress
(466) 540 (4,252) (3,216)
carried forward
Depreciation capitalised in prior year construction
work-in-progress now charged to consolidated - - 3,216 4,456
income statement
Depreciation charge as disclosed in Note 15 11,000 13,601 44,731 55,450

4. Intangible assets

Intangible assets comprise customer relationships, brand, goodwill, patented technology and
order backlog which were acquired in a business combination. The customer relationships,
brand, goodwill and order backlog were fully amortised and impaired in the previous financial
years.

Page 13 of 44
4. Intangible assets (Cont’d)

Impairment loss recognised

During the financial year, the Group carried out a review of the recoverable amount of its
patented technology, based on value in use calculations using cash flow projections from
financial budgets approved by management covering a five-year period.

Impairment loss of $1,626,000 (2021: Nil) was recognised to write down the carrying amount
of the intangible assets. The impairment loss has been recognised in the “other operating
expenses” line in the consolidated income statement.

5. Inventories
Group
As at As at
30-Jun-22 30-Jun-21
$’000 $’000
Raw materials and consumables
(at cost or net realisable value) 15,182 13,993
Finished goods
(at cost or net realisable value) 74,539 68,675
Total inventories 89,721 82,668

Inventories written down to net realisable value

During the current financial year, the Group carried out a review of the recoverable amount of
its inventories and there was no impairment required. In 2021, the Group recognised
impairment losses of $6,578,000 on vessels included in finished goods. The net realisable
values of vessels were determined by external independent valuation expert and management
has estimated the cost of disposal.
Group
3 months ended 30 June 12 months ended 30 June
4Q FY2022 4Q FY2021 FY2022 FY2021
$’000 $’000 $’000 $’000

Consolidated income statement:

Inventories recognised as an expense in cost of sales 1,062 270 2,305 2,711
Inventories written down, recognised as an expense in
other operating expenses - 6,578 - 6,578

6. Contracts assets and contract liabilities

Information about contract assets and contract liabilities from contracts with customers is
disclosed as follows:
Group
As at As at
30-Jun-22 30-Jun-21
$’000 $’000
Contract assets
Current
Accrued revenue 13,010 10,008
Construction work-in-progress 8,111 10,628
Total contract assets 21,121 20,636

Contract liabilities
Current
Deferred income and deposits
received from customers (16,293) (8,051)
Progress billings in excess of
construction work-in-progress (9,590) (7,650)
(25,883) (15,701)
Non-current
Deferred income (8,144) (15,246)
Total contract liabilities (34,027) (30,947)

Page 14 of 44
6. Contracts assets and contract liabilities (Cont’d)

Breakdown of construction work-in-progress/ progress billings in excess of construction

work-in-progress

Group
As at As at
30-Jun-22 30-Jun-21
$’000 $’000

Construction work-in-progress and

attributable profits (less recognised 32,535 20,672
losses) to date
Less: Progress billings (34,014) (17,694)
(1,479) 2,978
Presented as:
Construction work-in-progress 8,111 10,628
Progress billings in excess of
(9,590) (7,650)
construction work-in-progress
(1,479) 2,978

7. Trade and other receivables

Group Company
As at As at As at As at
30-Jun-22 30-Jun-21 30-Jun-22 30-Jun-21
$’000 $’000 $’000 $’000

Non-current
Other receivables:
Amount due from a subsidiary - - 5,167 4,650

Current
Trade receivables 57,135 69,970 - -
Less: Allowance for impairment (22,261) (28,647) - -
34,874 41,323 - -

Other receivables and deposits 9,951 9,944 20 20

Amounts due from subsidiaries - - 311,778 325,488
Amounts due from joint ventures and
associates 63,051 62,855 2,683 2,596
Amounts due from related parties 437 433 - -
73,439 73,232 314,481 328,104
Less: Allowance for impairment
Other receivables (818) (1,111) - -
Amounts due from subsidiaries - - (75,779) (88,340)
Amounts due from joint ventures and
(55,922) (57,656) (2,683) (2,596)
associates
Amounts due from related parties (45) (44) - -
(56,785) (58,811) (78,462) (90,936)

16,654 14,421 236,019 237,168

Total trade and other receivables
51,528 55,744 236,019 237,168
(current)
Total trade and other receivables
51,528 55,744 241,186 241,818
(current and non-current)

Page 15 of 44
8. Trade and other payables
Group Company
As at As at As at As at
30-Jun-22 30-Jun-21 30-Jun-22 30-Jun-21
$’000 $’000 $’000 $’000
Non-current
Amounts due to an associate 1,494 1,280 - -
Current
Trade payables and accruals 130,826 104,051 3,590 3,900
Payables for property, plant and equipment 2,192 1,187 - -
Other payables 2,308 2,437 - -
Other liabilities
- Deferred income 987 1,332 - -
- Deposits received from customers 1,837 3,966 - -
Amounts due to subsidiaries - - 79,283 78,144
Amounts due to joint ventures and associates 263 263 - -
Amounts due to related parties 4,187 4,270 -
Amounts due to non-controlling
213 206 - -
interests of subsidiaries
Amounts due to a shareholder 6,620 6,620 - -
Provision for warranty 3 6 - -
149,436 124,338 82,873 82,044
Total trade and other payables
(current and non-current) 150,930 125,618 82,873 82,044

The balances with joint ventures and associates and related parties and non-controlling
interests of subsidiaries are unsecured, interest-free and repayable on demand.

Related parties are Koon Holdings Limited (“KHL”) and its subsidiaries (collectively known
as “Koon Group”) and Sintech Metal Industries Pte Ltd (“Sintech”). Two of the directors and
Mr. Ang Sin Liu have a deemed equity interest of 53.76% (FY2021: 53.76%) in Koon Group.
One of the directors of the Company is also a director of KHL. KHL was delisted from the
Australian Stock Exchange on 6 September 2021 and the SGX-ST on 22 September 2021.
KHL was placed under Creditors’ Voluntary Liquidation on 12 May 2022. Mr. Ang Sin Liu is
the father of Ang Kok Tian, Ang Ah Nui and Ang Kok Leong, all of whom are Directors and
substantial shareholders of the Company. Mr. Ang Sin Liu wholly owns Sintech, which is an
exempt private company limited by share.
9. Loans and borrowings
Group Company
As at As at As at As at
30-Jun-22 30-Jun-21 30-Jun-22 30-Jun-21
Current $’000 $’000 $’000 $’000
Trust receipts 8,767 5,991 - -
Interest-bearing loans and borrowings
- Finance lease liabilities -secured 285 362 - -
- Floating rate - secured 33,386 33,080 10,536 10,436
- Fixed rate -secured 1,244 1,238 - -
- Fixed rate -unsecured 2,449 2,940 - -
37,364 37,620 10,536 10,436
46,131 43,611 10,536 10,436
Non-current
Interest-bearing loans and borrowings
- Finance lease liabilities -secured 172 457 - -
- Floating rate - secured 258,997 277,224 156,734 160,621
- Fixed rate -secured - 1,294 - -
- Fixed rate -unsecured 3,616 6,039 - -
262,785 285,014 156,734 160,621
Total loans and borrowings 308,916 328,625 167,270 171,057

Page 16 of 44
9. Loans and borrowings (Cont’d)
Loans and borrowings of the Group and the Company are secured by certain assets of the
Group as follows:
 Legal mortgages of certain leasehold properties of subsidiaries;
 Legal mortgages over certain vessels, plant and equipment of subsidiaries;
 Assignment of charter income and insurance of certain vessels of subsidiaries;
 Certain vessels under construction;
 Assignment and subordination of intercompany loans; and
 Corporate guarantees from the Company and certain subsidiaries.

The Group’s and the Company’s secured borrowings included the Series 006 and Series 007
notes issued pursuant to the S$500,000,000 Multicurrency Debt Issuance Programme
established by the Company (the “Notes”). The Series 006 and Series 007 notes with carrying
value of $71,632,000 (30 June 2021: $66,653,000) and $32,687,000 (30 June 2021:
$30,581,000) will mature on 28 March 2025 and 1 October 2026 respectively. The Notes are
secured by second priority mortgages of vessels pledged as securities for the $99,900,000 5-
year club term loan facility (“CTL Facility”).

The total carrying value of the collateralized assets as of 30 June 2022 was $376,801,000
(2021: $398,643,000).

10. Share capital and treasury shares

Group and Company

Number of shares Amount
Issued
Issued share Treasury Treasury
share
capital shares shares
capital
$’000 $’000 $’000 $’000
Fully paid ordinary shares,
with no par value
FY2022
Balance at 1 July 630,507 2,512 108,133 (923)
Conversion of warrants 120 - 7 -
Balance at 30 June 630,627 2,512 108,140 (923)
FY2021
Balance at 1 July 629,267 2,512 108,056 (923)
Conversion of warrants 1,240 - 77 -
Balance at 30 June 630,507 2,512 108,133 (923)

As at 30-Jun-22 30-Jun-21
Total number of issued shares 633,138,541 633,018,541
Total number of treasury shares (2,511,600) (2,511,600)
Total number of issued shares
630,626,941 630,506,941
(excluding treasury shares)

The holders of ordinary shares (except for treasury shares) are entitled to receive dividends
as and when declared by the Company. All ordinary shares (except for treasury shares) carry
one vote per share without restriction.

Page 17 of 44
10. Share capital and treasury shares (Cont’d)

Treasury shares

Treasury shares relate to ordinary shares of the Company that are held by the Company, the
Company’s subsidiaries did not hold any treasury shares. During the financial years ended 30
June 2022 and 30 June 2021, the Company did not buy back any shares and there were no
sales, transfers, disposal, cancellation and/or use of treasury shares.

Warrants
Number of Warrants
As at As at
30-Jun-22 30-Jun-21
Balance as at 1 July 565,890,713 567,130,713
Warrants exercised (120,000) (1,240,000)
Balance at 30 June 565,770,713 565,890,713

Other information

The percentage of the aggregate number of treasury shares held against the total number of
shares outstanding that is listed as at 30 June 2022 and 30 June 2021 is 0.40%.

Except for the warrants, there were no convertible securities as at 30 June 2022 and 30 June
2021. As at 30 June 2022, 1,360,000 warrants were exercised since the date of issuance of
warrants on 25 July 2019 and the number of shares that may be issued on exercise of warrants
were 565,770,713 (30 June 2021: 565,890,713).

There were no outstanding share options granted under the ASL Employee Share Option
Scheme 2012 as at 30 June 2022 and 30 June 2021.

The Company has no subsidiary holdings as at 30 June 2022 and 30 June 2021.

11 Segment and revenue information

11.1 (i) Business segments

The Group’s operating segments are its strategic business units that offer different products
and serves different markets. Management monitors the operating results of its business
segments separately for purpose of making decisions about resource allocation and
performance assessment. The Group has the following four main business segments:

Shipbuilding : Construction of vessels

Shiprepair, conversion and engineering : Provision of shiprepair, dredging

services engineering products and related services

Shipchartering : Provision for chartering of vessels

and transportation services

Investment holding : Provision of corporate and treasury services to

the Group

Page 18 of 44
11.1 (i) Business segments (Cont’d)

3 months ended 30 June

Shiprepair,
conversion
and
engineering Investment
Shipbuilding services Shipchartering holding Eliminations Consolidated
$'000 $'000 $'000 $'000 $'000 $'000
Revenue and expenses
From 1 April 2022 to 30 June 2022
Revenue from external customers 4,734 30,258 24,857 - - 59,849
Inter-segment revenue 4,426 20,522 5,974 - (30,922) -
Total revenue 9,160 50,780 30,831 - (30,922) 59,849

Segment results (2,535) (3,064) 2,413 (223) - (3,409)

Interest income from finance lease receivables 162 162

Finance costs (6,188)
Share of results of joint ventures and associates (1,084)
Income tax credit 1,165
Loss for the period (9,354)

From 1 April 2021 to 30 June 2021

Revenue from external customers 1,513 21,319 24,062 - - 46,894
Inter-segment revenue 3,869 11,132 6,592 - (21,593) -
Total revenue 5,382 32,451 30,654 - (21,593) 46,894

Segment results (1,106) 4,270 (6,534) (304) - (3,674)

Interest income from finance lease receivables 164 164

Finance costs (6,050)
Share of results of joint ventures and associates (567)
Income tax credit 3,504
Loss for the period (6,623)

Page 19 of 44
11.1 (i) Business segments (Cont’d)

12 months ended 30 June

Shiprepair,
conversion
and
engineering Investment
Shipbuilding services Shipchartering holding Eliminations Consolidated
$'000 $'000 $'000 $'000 $'000 $'000
From 1 July 2021 to 30 June 2022
Revenue from external customers 24,986 110,380 100,190 - - 235,556
Inter-segment revenue 8,439 51,920 25,628 - (85,987) -
Total revenue 33,425 162,300 125,818 - (85,987) 235,556

Segment results (6,186) 2,557 (4,069) (737) - (8,435)

Interest income from finance lease receivables - - 654 - - 654

Finance costs (23,883)
Share of results of joint ventures and associates (146)
Income tax expenses (385)
Loss for the year (32,195)

From 1 July 2020 to 30 June 2021

Revenue from external customers 24,606 83,052 85,302 - - 192,960
Inter-segment revenue 10,045 44,297 24,488 - (78,830) -
Total revenue 34,651 127,349 109,790 - (78,830) 192,960

Segment results (2,852) 6,404 (17,417) (1,012) - (14,877)

Interest income from finance lease receivables - - 564 - - 564

Finance costs (24,519)
Share of results of joint ventures and associates (1,777)
Income tax credit 3,710
Loss for the year (36,899)

Page 20 of 44
11.1 (i) Business segments (Cont’d)
Shiprepair,
conversion
and
engineering Investment
Shipbuilding services Shipchartering holding Eliminations Consolidated
$'000 $'000 $'000 $'000 $'000 $'000
Assets and liabilities

As at 30 June 2022
Segment assets 75,393 166,783 335,588 4,083 - 581,847
Unallocated assets 2,116
Total assets 583,963

Segment liabilities 27,392 90,486 71,289 3,608 - 192,775

Unallocated liabilities 323,433
Total liabilities 516,208

As at 30 June 2021
Segment assets 91,017 166,815 343,781 4,783 - 606,396
Unallocated assets 2,083
Total assets 608,479

Segment liabilities 28,328 76,115 59,041 3,918 - 167,402

Unallocated liabilities 343,706
Total liabilities 511,108

Other segmental information 3 months ended 30 June

Shiprepair,
conversion
and
engineering Investment
Shipbuilding services Shipchartering holding Consolidated
$'000 $'000 $'000 $'000 $'000

From 1 April 2022 to 30 June 2022

Capital expenditure 127 499 2,974 - 3,600
Depreciation and amortisation 916 2,497 8,185 - 11,598
Other non-cash (income)/ expenses (5) 59 - - 54
Impairment losses/ (reversal of impairment losses)
- 1,524 (1,217) - 307
on financial assets
Impairment loss/ (reversal of impairment loss)
5 15 (3,680) - (3,660)
on property, plant and equipment
Impairment loss on intangible assets - 1,626 - - 1,626
Finance cost 456 1,895 1,300 2,537 6,188
Interest income (1) (3) (163) - (167)

From 1 April 2021 to 30 June 2021

Capital expenditure (17) 46 4,411 - 4,440
Depreciation and amortisation 966 3,470 9,922 - 14,358
Other non-cash (income)/ expenses (21) 28 - - 7
Impairment losses/ (reversal of impairment losses)
73 (2,560) (4,764) (95) (7,346)
on financial assets
Impairment loss on property, plant and equipment 21 55 2,074 - 2,150
Impairment loss on inventories - - 6,578 - 6,578
Finance cost 1,585 4,402 1,357 (1,294) 6,050
Interest income - (2) (165) (1) (168)

12 months ended 30 June

From 1 July 2021 to 30 June 2022

Capital expenditure 348 1,247 18,073 - 19,668
Depreciation and amortisation 3,901 10,586 32,939 - 47,426
Other non-cash (income)/ expenses (5) 76 528 - 599
Impairment loss on financial assets, net - 1,892 (390) - 1,502
Impairment loss/ (reversal of impairment loss)
5 15 (3,680) - (3,660)
on property, plant and equipment
Impairment loss on intangible assets - 1,626 - - 1,626
Finance cost 2,095 7,056 5,066 9,666 23,883
Interest income (2) (13) (661) (1) (677)

From 1 July 2020 to 30 June 2021

Capital expenditure 302 982 20,986 - 22,270
Depreciation and amortisation 4,865 12,445 41,660 - 58,970
Other non-cash (income)/ expenses (21) 6 - - (15)
Impairment losses/ (reversal of impairment losses)
269 (119) (4,680) (95) (4,625)
on financial assets
Impairment loss on property, plant and equipment 21 55 2,074 - 2,150
Impairment loss on inventories - - 6,578 - 6,578
Finance cost 2,655 7,087 5,892 8,885 24,519
Interest income (3) (23) (575) (1) (602)

Page 21 of 44
11.1 (ii) Geographical segments

The Group operates in Singapore, Indonesia, Rest of Asia, Europe, Australia and other
countries. In presenting information on the basis of geographical segments, segment revenue
is based on the countries in which customers are invoiced.

Non-current assets relate to property, plant and equipment, right-of-use assets, investment in
joint ventures and associates, intangible assets and finance lease receivables. Non-current
assets are based on the geographical location of the respective entities within the Group.

3 months ended 30 June

Other
From 1 April 2022 to Singapore Indonesia Rest of Asia Europe Australia Countries Consolidated
30 June 2022 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Revenue from external
customers 21,902 9,095 14,048 5,105 1,366 8,333 59,849

Non-current assets 218,714 127,393 43,343 1,330 - - 390,780

From 1 April 2021 to

30 June 2021
Revenue from external
customers 24,304 5,768 8,163 3,435 1,175 4,049 46,894

Non-current assets 231,044 138,641 43,349 3,884 - - 416,918

12 months ended 30 June

Other
From 1 July 2021 to Singapore Indonesia Rest of Asia Europe Australia Countries Consolidated
30 June 2022 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Revenue from external
customers 90,502 35,168 48,711 18,712 10,394 32,069 235,556

Non-current assets 218,714 127,393 43,343 1,330 - - 390,780

From 1 July 2020 to

30 June 2021
Revenue from external
customers 94,710 32,438 39,163 7,875 12,418 6,356 192,960

Non-current assets 231,044 138,641 43,349 3,884 - - 416,918

Management believes it would not be meaningful to analyse the segment assets by

geographical segment because

a. For charter services, certain vessels cannot be practically allocated to the different
geographical areas. Charterers of the Group’s vessels have the discretion to operate
within a wide area and are not constrained by a specific sea route; and

b. For shipyard operations, majority of the large scale repair works are performed in the
Group’s Batam shipyard, and where geographical location of customers is outside
Indonesia, the segment revenue is presented based on the geographical location of
customers.

Page 22 of 44
11.2 Disaggregation of revenue

3 months ended 30 June 12 months ended 30 June

4Q FY2022 4Q FY2021 FY2022 FY2021
Group At a point Over time Total At a point Over time Total At a point Over time Total At a point Over time Total
in time in time in time in time
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Shipbuilding segment
- Construction of tugs - 340 340 - - - - 992 992 9,318 7,123 16,441
- Construction of barges and others 141 4,253 4,394 140 1,373 1,513 7,362 16,632 23,994 6,714 1,451 8,165
141 4,593 4,734 140 1,373 1,513 7,362 17,624 24,986 16,032 8,574 24,606
Shiprepair, conversion and engineering
services segment
- Provision of shiprepair and related services - 28,228 28,228 - 19,140 19,140 - 104,389 104,389 - 75,230 75,230
- Provision of engineering service and sales of
components 604 1,426 2,030 51 2,128 2,179 1,938 4,053 5,991 3,411 4,411 7,822
604 29,654 30,258 51 21,268 21,319 1,938 108,442 110,380 3,411 79,641 83,052
Shipchartering segment
- Leasing income - 7,700 7,700 - 9,801 9,801 - 36,337 36,337 - 30,157 30,157
- Mobilisation and demobilisation income - 377 377 - 7,182 7,182 - 1,043 1,043 - 9,675 9,675
- Freight income - 4,458 4,458 - 2,365 2,365 - 20,311 20,311 - 9,610 9,610
- Other charter ancillary and marine related
service income 2,338 9,445 11,783 1,576 2,650 4,226 6,556 34,564 41,120 9,994 23,824 33,818
- Ship management income - 177 177 - 150 150 - 662 662 - 600 600
- Trade sales 317 45 362 297 41 338 555 162 717 1,274 168 1,442
2,655 22,202 24,857 1,873 22,189 24,062 7,111 93,079 100,190 11,268 74,034 85,302
3,400 56,449 59,849 2,064 44,830 46,894 16,411 219,145 235,556 30,711 162,249 192,960

Page 23 of 44
11.2 Disaggregation of revenue (Cont’d)

The following table set out the Group’s revenue disaggregated by primary geographical markets and main business segments:
3 months ended 30 June
Shiprepair, conversion
Group Shipbuilding and engineering services Shipchartering and rental Total
4Q FY2022 4Q FY2021 4Q FY2022 4Q FY2021 4Q FY2022 4Q FY2021 4Q FY2022 4Q FY2021
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Singapore - 881 12,980 9,441 8,922 13,982 21,902 24,304
Indonesia 141 139 6,667 3,746 2,287 1,883 9,095 5,768
Rest of Asia 340 - 4,880 1,773 8,828 6,390 14,048 8,163
Europe - - 4,699 2,927 406 507 5,105 3,434
Australia - - 285 683 1,081 492 1,366 1,175
Other Countries 4,253 493 747 2,749 3,333 808 8,333 4,050
4,734 1,513 30,258 21,319 24,857 24,062 59,849 46,894

12 months ended 30 June

Shiprepair, conversion
Group Shipbuilding and engineering services Shipchartering and rental Total
FY2022 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 FY2021
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Singapore 7,537 959 46,120 46,659 36,845 47,092 90,502 94,710
Indonesia 562 6,714 22,844 12,219 11,762 13,505 35,168 32,438
Rest of Asia 992 9,318 11,045 9,820 36,674 20,025 48,711 39,163
Europe - - 16,776 7,305 1,936 570 18,712 7,875
Australia - 7,122 5,139 2,838 5,255 2,458 10,394 12,418
Other Countries 15,895 493 8,456 4,211 7,718 1,652 32,069 6,356
24,986 24,606 110,380 83,052 100,190 85,302 235,556 192,960

11.3 Seasonality of operations

The Group’s shipyard and shipchartering businesses are not affected significantly by seasonable factors quarter-to-quarter in a financial year.

Page 24 of 44
12. Other operating income
Group
3 months ended 30 June 12 months ended 30 June
4Q FY2022 4Q FY2021 FY2022 FY2021
$’000 $’000 $’000 $’000

Gain on disposal of assets classified as held for sale - 237 - 981

Gain on disposal of property, plant and equipment 2,485 1,292 3,921 5,291
Gain on dissolution of subsidiaries - 89 401 89
Gain on foreign exchange (net) 2,051 304 363 -
Gain on remeasurement of lease liabilities - 527 - 537
Government grants 266 668 1,523 2,848
Insurance claims - 548 1,257 612
Interest income from debt instruments at
amortised costs
- deposits and bank balances 5 4 23 38
- finance lease receivables 162 164 654 564
Miscellaneous income 284 222 892 646
Rental income 129 113 501 496
Reversal of impairment losses/ (impairment
losses) on non-financial assets:
- property, plant and equipment 3,660 - 3,660 -
- intangible assets (1,626) - (1,626) -
2,034 - 2,034 -

7,416 4,168 11,569 12,102

13. Other operating expenses

Group
3 months ended 30 June 12 months ended 30 June
4Q FY2022 4Q FY2021 FY2022 FY2021
$’000 $’000 $’000 $’000

Impairment losses on non-financial assets:

- inventories - 6,578 - 6,578
- property, plant and equipment - 2,150 - 2,150
- 8,728 - 8,728
Inventories written off - - - 13
Loss on foreign exchange (net) - - - 2,234
Loss on remeasurement of lease liabilities - - 60 -
Property, plant and equipment written off - - 528 2
Contract-related settlements - 1,818 - 1,818

- 10,546 588 12,795

14. Finance costs

Group
3 months ended 30 June 12 months ended 30 June
4Q FY2022 4Q FY2021 FY2022 FY2021
$’000 $’000 $’000 $’000
Interest expense on:
- bank loans and notes 6,046 5,850 23,231 23,672
- finance lease 6 12 29 118
- lease liabilities 136 188 623 729
- trust receipts 55 39 175 422
6,243 6,089 24,058 24,941
Less:
Interest expense capitalised
in contract assets
- trust receipts 1 (2) (3) (8)
Interest expense charged to
cost of sales
- trust receipts (56) (37) (172) (414)
6,188 6,050 23,883 24,519

Page 25 of 44
15. Loss before tax
Group
3 months ended 30 June 12 months ended 30 June
4Q FY2022 4Q FY2021 FY2022 FY2021
$’000 $’000 $’000 $’000
Loss before tax is stated after
charging/(crediting):
Amortisation of intangible assets 71 78 296 308
Audit fees paid/payable
- auditor of the Company 101 76 330 305
- overseas affiliates of the auditors of
22 21 85 84
the Company
- other auditors 42 4 56 18
Non-audit fees paid/payable to auditor
7 1 10 4
of the Company
Depreciation of property, plant and equipment 11,000 13,601 44,731 55,450
Depreciation of right-of-use assets 527 679 2,399 3,212
Employee benefits expense 9,649 8,508 37,459 34,539
(Reversal of)/ impairment losses on
financial assets (net):
- amount due from:
• joint ventures and associates (1,854) (4,119) (2,554) (5,354)
• related parties - 42 - 42
- contract assets 88 57 55 69
- other receivables (119) (76) (297) 108
- trade receivables (third parties) 2,192 (3,250) 4,298 510

16. Income tax (expenses)/ credit

The major components of income tax (expense)/credit are:

Group
3 months ended 30 June 12 months ended 30 June
4Q FY2022 4Q FY2021 FY2022 FY2021
$’000 $’000 $’000 $’000

Current income tax:

Current income tax 348 (2,400) (1,602) (2,400)
Over/(under) provision in respect of
376 2,336 (767) 1,895
prior years
724 (64) (2,369) (505)
Deferred tax:
Movements in temporary differences 1,110 1,848 1,836 1,905
(Under)/ over provision in respect of
(669) 1,720 148 2,310
prior years
441 3,568 1,984 4,215
Total income tax credit/ (expenses) 1,165 3,504 (385) 3,710

17. Loss per share

Basic earnings per share are calculated by dividing loss, net of tax, attributable to owners
of the Company by the weighted average number of ordinary shares outstanding during
the financial period/ year.

Diluted earnings per share are calculated by dividing loss, net of tax, attributable to
owners of the Company by the weighted average number of ordinary shares outstanding
during the financial period/ year plus the weighted average number of ordinary shares
that would be issued on the conversion of all the dilutive potential ordinary shares into
ordinary shares.

Page 26 of 44
17. Loss per share (Cont’d)

The following table reflects the loss and share data used in the computation of basic and
diluted earnings per share during the financial periods/ years reported on:

Group
3 months ended 30 June 12 months ended 30 June
Earnings per ordinary share: 4Q FY2022 4Q FY2021 FY2022 FY2021
(i) On weighted average no.
of ordinary shares in issue (1.50) cents (1.02) cents (5.12) cents (5.56) cents

(ii) On a fully diluted basis (1.50) cents (1.02) cents (5.12) cents (5.56) cents

Net loss attributable to

shareholders: ($9,447,000) ($6,415,000) ($32,273,000) ($35,015,000)

Number of shares in issue:

(i) Weighted average no.
of shares in issue 630,626,941 629,290,831 630,619,051 629,290,831

(ii) On a fully diluted basis 630,626,941 629,290,831 630,619,051 629,290,831

Treasury shares have not been included in the calculation of both basic and diluted
earnings per share because the holders of these treasury shares are not entitled to
dividend of the Company.

18. Net asset value per share

Group Company
30-Jun-22 30-Jun-21 30-Jun-22 30-Jun-21

Net Asset Value (NAV) per

ordinary share 10.88 cents 15.57 cents 5.25 cents 5.21 cents
NAV computed based on
no. of ordinary shares issued 630,626,941 630,506,941 630,626,941 630,506,941

The calculation of net asset value per share as at 30 June 2022 and 30 June 2021 was
computed based on the number of shares as at the end of the reporting years.

19. Related party transactions

In addition to the related party information disclosed elsewhere in the condensed

consolidated interim financial statements, the following significant transactions were
entered by the Group and its related parties on terms agreed between the parties during
the financial period/ year:

Page 27 of 44
19. Related party transactions (Cont’d)

(i) Sale and purchase of goods and services

Group
3 months ended 30 June 12 months ended 30 June
4Q FY2022 4Q FY2021 FY2022 FY2021
$’000 $’000 $’000 $’000
Joint ventures and associates
Charter and trade expenses (766) (834) (2,390) (2,081)
Shipcharter income - - - (15)
Shiprepair income - - 321 64
Trade sales income - - - -

Related parties
Charter and trade expenses - (13) (10) (2)
Miscellaneous income - - - 39
Purchase of materials - - - (226)
Purchase of plant and machinery - - (810) -
Shipcharter income - - 676 -

Company
3 months ended 30 June 12 months ended 30 June
4Q FY2022 4Q FY2021 FY2022 FY2021
$’000 $’000 $’000 $’000
Subsidiaries
Interest income 1,393 4,996 5,433 5,535

(ii) Settlement of liabilities on behalf by/(for) the Group

Group
3 months ended 30 June 12 months ended 30 June
4Q FY2022 4Q FY2021 FY2022 FY2021
$’000 $’000 $’000 $’000
Joint ventures and associates 176 226 1,344 861
Joint ventures and associates (12) 5 (12) (939)
Related parties - (1,381) - (1,381)

20. Fair value measurement

(i) Financial assets and financial liabilities

The following table shows carrying amounts of financial assets and financial
liabilities. It does not include fair value information for financial assets and financial
liabilities measured at amortised cost if the carrying amount is a reasonable
approximation of fair value.

Page 28 of 44
20. Fair value measurement

(i) Financial assets and financial liabilities (Cont’d)

Group Company
As at As at As at As at
30-Jun-22 30-Jun-21 30-Jun-22 30-Jun-21
$’000 $’000 $’000 $’000
Financial assets not measured at fair value
Trade and other receivables 51,528 55,744 241,186 241,818
Accrued revenue 13,010 10,008 - -
Finance lease receivables 9,660 8,642 - -
Cash and bank balances 22,072 26,533 3,700 4,407
At amortised cost 96,270 100,927 244,886 246,225

Financial liabilities not measured at fair value

Trade and other payables* 148,103 120,314 82,873 82,044
Trust receipts 8,767 5,991 - -
Interest bearing loans and borrowings 300,149 322,634 167,270 171,057
Lease liabilities 5,293 7,456 - -
At amortised cost 462,312 456,395 250,143 253,101

* Excludes deferred income, deposits received from customers and provision for warranty

(ii) Measurement of fair values

(a) Fair value hierarchy

The Group and the Company classify fair value measurement using a fair value
hierarchy that is dependent on the valuation inputs used as follows:

Level 1: Quoted prices (unadjusted) in active markets of identical assets or

liabilities that the Group can access at the measurement date,
Level 2: Inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly or indirectly, and
Level 3: Unobservable inputs for the asset or liability.

Fair value measurements that use inputs of different hierarchy levels are
categorised in its entirety in the same level of the fair value hierarchy as the lowest
level input that is significant to the entire measurement.

There have been no transfers between Level 1 and Level 2 and no transfers into or
out of Level 3 during financial years 30 June 2022 and 30 June 2021.

(b) Assets and liabilities measured at fair value

Level 3 fair value measurements

Property, plant and equipment

The recoverable amounts of certain plant and equipment of $118,113,000 (2021:
$45,699,000) were based on fair value less cost of disposal which was determined
by an independent valuer. These considered replacement costs of similar plant
and equipment currently owned by the Group adjusted for age, condition and
technological obsolescence. In addition, the valuers also considered sales of
similar plant and equipment that have been transacted in the open market.

Page 29 of 44
20. Fair value measurement (Cont’d)

Inventories
In 2021, the recoverable amounts of certain inventories of $72,884,000 were
based on fair value less cost of disposal which was determined by an independent
valuer. The valuers considered sales of similar vessels that have been transacted
in the open market.

(c) Fair value of financial instruments by classes that are not carried at fair value and
whose carrying amounts are a reasonable approximation of fair value

The Group’s financial assets and liabilities include cash and bank balances, trade
and other receivables, contract assets, trade and other payables, contract
liabilities, trust receipts, floating rate loans and current portion of fixed rate loans.

The carrying amounts of these financial assets and liabilities are reasonable
approximation of fair values, because these are short-term in nature or that they
are floating rate instruments that are repriced to market interest rates on or near to
the end of the reporting period.

(d) Fair value of financial instruments by classes that are not carried at fair value and
whose carrying amounts are not a reasonable approximation of fair value

The fair value of financial liabilities by classes that are not carried at fair value and
whose carrying amounts are not reasonable approximation of fair value are as
follows:
Group
Carrying amount Fair value
30-Jun-22 30-Jun-21 30-Jun-22 30-Jun-21
$’000 $’000 $’000 $’000

Financial liabilities
Finance lease liabilities
(Non-current) (Note 9) 172 457 160 434
Fixed rate loans
(Non-current) (Note 9) 3,616 7,333 3,241 6,638

These financial liabilities are categorised within Level 3 of the fair value hierarchy.

Determination of fair value

The fair values of finance lease liabilities, interest-bearing loans and borrowings
and lease liabilities with fixed interest rates are estimated by discounting expected
future cash flows at market incremental lending rate for similar types of lending,
borrowing or leasing arrangements at the end of the reporting period.

Page 30 of 44
(II) Other Information Required under Appendix 7.2 of the Listing Manual of SGX-ST

A. Review of Group Performance

Consolidated Income Statement

Revenue by business segments

Group revenue of $59.8 million for the 3 months ended 30 June 2022 ("4Q FY2022") was
$13.0 million (27.6%) higher compared to the corresponding quarter in FY2021 ("4Q
FY2021"). For the 12 months ended 30 June 2022 (“FY2022”), the Group revenue was
$42.6 million (22.1%) higher compared to the corresponding year ended 30 June 2021
(“FY2021”).

Details for revenue generated from each segment are as follows:

Group
4Q 4Q Increase/ 9M 9M Increase/
FY2022 FY2021 (Decrease) FY2022 FY2021 (Decrease)
$'000 $'000 % $'000 $'000 %
Shipbuilding 4,734 1,513 212.9 24,986 24,606 1.5
Shiprepair, conversion and
engineering services 30,258 21,319 41.9 110,380 83,052 32.9
Shipchartering 24,857 24,062 3.3 100,190 85,302 17.5
59,849 46,894 27.6 235,556 192,960 22.1

Shipbuilding

Revenue and related costs of certain shipbuilding contracts with non-enforceability of

right to payment for performance completed to-date are recognised only when the
constructed vessels are delivered to customers (“Completion method”), instead of using
the percentage of completion method (“POC method”) in accordance with SFRS(I) 15
Revenue from Contracts with Customers. As a result, shipbuilding revenue and results
can fluctuate depending on whether the revenue from shipbuilding contracts is
recognised on Completion or POC methods.

The breakdown of shipbuilding revenue generated and the number of units recognised
are as follows:

Group
4Q 4Q Increase/ 9M 9M Increase/
FY2022 FY2021 (Decrease) FY2022 FY2021 (Decrease)
Units $'000 Units $'000 % Units $'000 Units $'000 %
Tugs 1 340 - - Nm 1 992 4 16,441 (94.0)
Barges and others 2 4,394 3 1,513 190.4 5 23,994 13 8,165 193.9
3 4,734 3 1,513 212.9 6 24,986 17 24,606 1.5

Shipbuilding revenue of $4.7 million was higher by $3.2 million in 4Q FY2022 as

compared to last corresponding period. The revenue in 4Q FY2022 comprised
progressive recognition of 2 units of high-value oil spill recovery barges, these barges
were at its initial stage of construction in the corresponding quarter last year. Apart from
the 2 oil spill recovery barges, the higher revenue in FY2022 included 2 units of Eco-Ark
® Floating Fish Farms recognised based on Completion method during the year.

Page 31 of 44
Shiprepair, conversion and engineering services

Shiprepair and conversion services are generally performed based on the customer’s
specifications and control is transferred progressively when the services are rendered.
Recognition of shiprepair and conversion revenue is calculated based on project value
multiplied by percentage of completion.

Shiprepair, conversion and engineering services revenue increased by $8.9 million

(41.9%) to $30.3 million in 4Q FY2022 and $27.3 million (32.9%) to $110.4 million in
FY2022. The higher revenue was mainly due to more high value shiprepair jobs
undertaken during the periods. The lower revenue in last corresponding periods was
affected by COVID-19 pandemic.

Shipchartering

The breakdown of revenue generated from the shipchartering segment are as follows:

Group
4Q 4Q Increase/ 9M 9M Increase/
FY2022 FY2021 (Decrease) FY2022 FY2021 (Decrease)
$'000 $'000 % $'000 $'000 %
Offshore Support Vessels ("OSV") 6,479 3,286 97.2 23,987 13,756 74.4
Landing crafts 119 22 440.9 305 522 (41.6)
Tug Boats 7,498 8,738 (14.2) 32,071 28,013 14.5
Barges 5,535 8,129 (31.9) 26,685 24,010 11.1
Total charter 19,631 20,175 (2.7) 83,048 66,301 25.3
Trade sales and other services 5,226 3,887 34.4 17,142 19,001 (9.8)
24,857 24,062 3.3 100,190 85,302 17.5

The overall utilisation rate of chartering fleet increased from 40% in FY2021 to 54% in
FY2022 and maintained at 55% in both 4Q FY2022 and 4Q FY2021.

Charter revenue in 4Q FY2022 was marginally lower and would have performed better if
not for the summer monsoon in India and Southeast Asia, affecting the tonnage carried
under its new charter for rock shipment to Bangladesh.

Charter revenue increased by $16.7 million (25.3%) to $83.0 million in FY2022 mainly
due to:
(i) Higher utilisation rate of OSV (4Q FY2022: 59%; 4Q FY2021: 49%; FY2022: 60%;
FY2021: 53%) due to deployment in Asian Pacific region;
(ii) Contribution from new charter for rock shipment to Bangladesh; and
(iii) Full resumption of activities in major local infrastructure projects which were being
affected by COVID-19 pandemic in Singapore.

Trade sales and other services comprised bunker sales, agency and management fees
and ad-hoc marine-related services.

Page 32 of 44
Gross (loss)/profit and gross margin

The breakdown of gross (loss)/ profit and gross margin for each respective segment are
as follows:

Group
4Q 4Q 9M 9M
FY2022 FY2021 FY2022 FY2021
$'000 GPM $'000 GPM $'000 GPM $'000 GPM
Shipbuilding (819) (17.3%) 49 3.2% 79 0.3% 814 3.3%
Shiprepair, conversion and
engineering services 3,261 10.8% 3,183 14.9% 14,291 12.9% 12,920 15.6%
Shipchartering (7,524) (30.3%) (3,351) (13.9%) (14,495) (14.5%) (14,948) (17.5%)
(5,082) (8.5%) (119) (0.3%) (125) (0.1%) (1,214) (0.6%)

Shipbuilding

The gross loss in 4Q FY2022 was attributed to costs overrun on the construction of
existing barges, which are due for completion in next quarter.

Shiprepair, conversion and engineering services

Despite increase in revenue, gross profit margin decreased in current financial periods
under review, mainly due to low margins derived from certain high value projects
recognised in 4Q FY2022.

The higher gross margin of 15.6% in FY2021 was attributed to closure and recognition
of prior years’ projects from certain customers.

Shipchartering

The breakdown of gross loss and gross margin from shipchartering segment are as
follows:

Group
4Q 4Q 0 0
FY2022 FY2021 FY2022 FY2021
$'000 GPM $'000 GPM $'000 GPM $'000 GPM
OSV (2,474) (38.2%) (2,994) (91.1%) (5,032) (21.0%) (6,836) (49.7%)
Landing crafts (117) (98.3%) (254) Nm (393) (128.9%) (688) (131.8%)
Tug boats and Barges (6,864) (52.7%) (722) (4.3%) (13,738) (23.4%) (13,698) (26.3%)
Total charter (9,455) (48.2%) (3,970) (19.7%) (19,163) (23.1%) (21,222) (32.0%)
Trade sales and other services 1,931 36.9% 619 15.9% 4,668 27.2% 6,274 33.0%
(7,524) (30.3%) (3,351) (13.9%) (14,495) (14.5%) (14,948) (17.5%)

In 4Q FY2022, the Group incurred higher operating costs including fuel and upkeep
expenses in mobilizing vessels deployed in overseas infrastructure projects under
towage and contract of affreightment arrangements. As compared to last corresponding
year, fuel prices on average rose (FY2022: $1.00/litre; FY2021: $0.55/litre) resulting in
higher fuel bill. The Group experienced continuous pricing pressure under the current
economic environment.

As highlighted in Section (1) F, Note 2.4 of this report, during the current financial period,
the Group conducted an operational review and assessment of the residual value of its
vessels. With effect from 1 July 2021, the depreciation of vessels owned by the Group
has been adjusted to take into account the residual value of its vessels. Accordingly, the
Group recorded a lower depreciation charge on its vessel fleet of $8.2 million in 4Q
FY2022 (4Q FY2021: $9.9 million) and $32.9 million in FY2022 (FY2021: $41.7 million).

Page 33 of 44
 Gross margin of trade sales and other services in 4Q FY2022 were higher mainly due
to higher agency income and ad hoc services rendered.

Other operating income

Refer to breakdown of other operating income in section (I) F, Note 12 of this report. The
increase by $3.2 million to $7.4 million in 4Q FY2022 was mainly due to net reversal of
impairment losses on non-financial assets, higher gain on disposal of assets and net
foreign exchange gain.

The net reversal of impairment loss on non-financial assets resulted from:

a. write-back of impairment of $3.7 million on the Group’s chartering fleet of vessels,
based on fair market value assessed by independent professional valuers; partially
offset by
b. Impairment loss of $1.6 million on the Group’s patented technology, based on
recoverable amount determined from value in use calculations using cash flow
projections from financial budgets approved by management covering a five-year
period.

The net foreign exchange gain in FY2022 was mainly due to appreciation of USD against
SGD on SGD denominated liabilities of certain subsidiaries whose accounts are
maintained in USD, partially offset by the depreciation of EUR against SGD on EUR
denominated assets. Whereas, the net foreign exchange loss recorded under other
operating expenses in FY2021 was mainly due to depreciation of USD against SGD on
SGD denominated liabilities of certain subsidiaries whose accounts are maintained in
USD, partially offset by the depreciation of IDR against SGD on IDR denominated
liabilities.

30 Jun 31 Mar 30 Jun 31 Mar 30 Jun

2022 2022 2021 2021 2020
USD against SGD 1.3895 1.3530 1.3445 1.3470 1.3932
EUR against SGD 1.4553 1.5022 1.5944 1.5786 1.5657
IDR against SGD 10,685 10,605 10,781 10,818 10,265

The gain on re-measurement of the lease liabilities recorded in 4Q FY2021 mainly arose
from the waiver of rental and extension of lease term of excavators utilised in
shipchartering operations.

The government grants mainly pertained to COVID-19 relief measures provided by the
Singapore Government for wages paid to local employees under the Jobs Support
Scheme (“JSS grant”) and rebates for foreign workers levy.

Other operating expenses

Refer to breakdown of other operating expenses in section (I) F, Note 13 of this report.
Other operating expenses of $0.6 million in FY2022 comprised mainly of a barge written
off due to total loss.

The impairment loss on non-financial assets of $8.7 million in FY2021, comprised

impairment on:
i) Inventories (Finished goods) of $6.6 million on three Platform Support Vessels
(“PSVs”), which the Group holds as inventories, impaired based on fair market value
assessed by independent professional valuers; and

Page 34 of 44
ii) Property, plant and equipment of $2.2 million on the Group’s chartering fleet of
vessels, impaired based on fair market value assessed by independent professional
valuers.

The contract-related settlements of $1.8 million recorded in FY2021 pertained to the

settlement of certain contractual claims without any admission of liability by the Group.
The individual terms of all such settlements are required to be kept confidential.

Administrative expenses

Administrative expenses increased by $0.9 million (21.0%) to $5.3 million in 4Q FY2022

mainly due to higher staff costs and sales commission incurred on shipyard operations.

Finance costs

Finance cost decreased marginally by $0.6 million (2.3%) to $23.9 million in FY2022
mainly due to higher interest expenses incurred in last corresponding year, brought about
by the 6 months deferral of principal repayment for the period July 2020 to December
2020 in FY2021 granted by major lenders of the Group.

Group
4Q 4Q 0 0
FY2022 FY2021 FY2022 FY2021
$'000 $'000 $'000 $'000
Interest expense on:
Bank loans and bonds 2,720 2,728 10,383 11,370
Lease liabilities 142 200 652 847
Amortisation of bank loans and bonds 3,326 3,122 12,848 12,302
6,188 6,050 23,883 24,519

(Reversal of)/ impairment losses on financial assets

Group
4Q 4Q 0 0
FY2022 FY2021 FY2022 FY2021
(Reversal of)/ impairment losses on $'000 $'000 $'000 $'000
financial assets, net
- amount due from:
• joint ventures and associates (1,854) (4,119) (2,554) (5,354)
• related parties - 42 - 42
- contract assets 88 57 55 69
- other receivables (119) (76) (297) 108
- trade receivables (third parties) 2,192 (3,250) 4,298 510
307 (7,346) 1,502 (4,625)
(Reversal of)/ Impairment losses on
non-financial assets, net (recorded
under other operating (income) /expenses) (2,034) 8,728 (2,034) 8,728

Total (reversal of)/ impairment losses (1,727) 1,382 (532) 4,103

The impairment losses made were based on expected credit loss model and specific
impairment on certain debts where recovery is uncertain.

The reversal of impairment loss on amount due from joint ventures and associates
resulted from progressive settlement of debts and reversal of prior year’s impairment
made in view of certainty of recoverability.

Page 35 of 44
Nonetheless, the Group will continue to tighten its effort to recover these amounts,
especially with respect to those receivables which the Group has possession of the
repaired vessels in hand.

Share of results of joint ventures and associates

The Group’s share of results of joint ventures and associates comprised:

Group
Group's 4Q 4Q 9M 9M
effective FY2022 FY2021 FY2022 FY2021
interest $'000 $'000 $'000 $'000
Joint ventures
Sindo-Econ group 50% - - - -
Associates
PT. Hafar Capitol Nusantara ("PT Hafar") 36.75% (869) (622) (87) (1,998)
PT Capitol Nusantara Indonesia ("PT CNI") 27% (215) 55 (59) 221
(1,084) (567) (146) (1,777)

The Group has restricted its share of losses from Sindo-Econ group to its cost of
investment since 1Q FY2018. Sindo-Econ Pte Ltd commenced creditors’ voluntary
winding up on 21 July 2020 as disclosed in the Company’s announcement dated 24 July
2020.

The share of loss from PT Hafar of $0.9 million in 4Q FY2022 was mainly due to absence
of charter income, partially offset by foreign exchange gain resulted from appreciation of
USD against IDR on IDR denominated liabilities of PT Hafar, whose accounts are
maintained in USD.

The share of results of PT CNI relates to progressive recognition of the Group’s

proportionate interest of unrealised gain/loss previously eliminated on sale of vessels to
PT CNI. The Group has restricted its share of losses to its cost of investment since 4Q
FY2017.

Loss before tax

The Group recorded a higher loss before tax of $10.5 million in 4Q FY2022 (4Q FY2021:
$10.1 million), resulted from higher gross loss, impairment losses on financial assets and
administrative expenses, partially offset by higher other operating income and lower
other operating expenses.

The Group recorded a lower loss before tax of $31.8 million in FY2022 (FY2021: $40.6
million) attributable to lower gross loss, other operating expenses and share of losses of
associates, partially offset by higher impairment losses on financial assets.

Income tax credit

The Group’s income tax credit of $3.7 million in FY2021 was mainly due to utilization of
deferred tax assets previously not recognised and tax losses from certain subsidiaries
had been utilized by other subsidiaries within the Group under group tax relief.

Non-controlling interests

Non-controlling interests’ share of profit mainly pertains to the portion of results of its
non-wholly owned subsidiaries in Indonesia.

Page 36 of 44
Consolidated Statement of Cash Flows

The Group recorded a higher net cash inflow from operating activities of $55.4 million in
FY2022 (FY2021: $45.8 million) mainly due to higher net working capital inflow.

The higher net cash outflow from investing activities of $12.1 million in FY2022 (FY2021:
$1.4 million) was mainly due to lower proceeds from disposal of assets.

The higher net cash outflow from financing activities of $50.3 million in FY2022 (FY2021:
$47.8 million) was mainly due to higher cash balances being restricted for project usage
and repayment of interest-bearing loans and borrowings, partially offset by higher net
proceeds from trust receipts. There were 6 months deferral of principal repayment for
the period July 2020 to December 2020 in FY2021 granted by major lenders of the Group.

Consolidated Statement of Financial Position

Non-current assets

Property, plant and equipment

Refer movement in property, plant and equipment during the period in section I (F), Note
3 of this report. Property, plant and equipment decreased by $20.4 million (5.2%) from
$395.6 million as at 30 June 2021 to $375.2 million as at 30 June 2022 mainly due to
depreciation charge, partially offset by additions during the year.

The additions made during the year comprised:

FY2022
$’000
- vessels and modification works 9,363
- plant and equipment, office equipment
2,226
and motor vehicles
- assets under construction 30
- drydocking expenditure on vessels
8,049
capitalised
19,668

The addition of vessels and modification works were incurred to support charter contracts
secured.

Right-of-use assets (“ROU assets”)

The ROU assets pertained to leases of plant and equipment, leasehold properties and
buildings as well as land use rights over plots of land in Indonesia and Singapore where
the shipyards of the Group operate. ROU assets decreased by $1.9 million (17.8%) to
$8.9 million as at 30 June 2022 mainly due to depreciation charge of $2.4 million, partially
offset by addition of $0.6 million which pertained to renewal of one of the plots of land in
Indonesia.

Current assets

Current assets increased by $1.6 million (0.9%) to $193.2 million as at 30 June 2022
mainly due to higher inventories and finance lease receivables, partially offset by lower
cash and bank balances as well as trade and other receivables.

Page 37 of 44
Inventories
Refer to breakdown of inventories in section (I) F, Note 5 of this report. Majority of the
raw materials are inventories meant for ongoing shipbuilding and shiprepair projects.
Finished goods consist of vessels for sale and dredge component parts. The increase
in inventories was mainly due to vessels acquired which resulted from settlement-in-kind
for debts owing to the Group and increase in fuel on board the vessels.

Trade and other receivables

Group
Increase/
30-Jun-22 30-Jun-21
(Decrease)
$'000 $'000 $'000 %
Trade receivables 34,874 41,323 (6,449) (15.6)
Other receivables and deposits 9,133 8,833 300 3.4
Amount due from:
- joint ventures and associates 7,129 5,199 1,930 37.1
- related parties 392 389 3 0.8
51,528 55,744 (4,216) (7.6)

The trade receivables decreased by $6.4 million (15.6%) to $34.9 million as at 30 June
2022 mainly due to more receipts from shiprepair customers. Trade receivables of
$16.5 million have been received subsequent to the end of financial period under review.

Other receivables and deposits comprised mainly receivables from sale of vessels,
advances to suppliers and subcontractors and recoverable from customers.

The increase in amount due from joint ventures and associates mainly due to reversal of
prior year’s impairment made in view of certainty of recoverability.

Current liabilities

Current liabilities increased by $38.5 million (20.1%) to $230.7 million as at 30 June 2022
mainly due to higher trade and other payables as well as contract liabilities.

Trade and other payables

Refer to breakdown of trade and other payables in section (I) F, Note 8 of this report.
The increase in trade and other payables was mainly due to higher payables owing to
suppliers and subcontractors with the pick-up of shipchartering and shiprepair activities
during the year under review.

Contracts assets and liabilities

Refer to breakdown of contracts assets and liabilities in section (I) F, Note 6 of this report.
Accrued revenue of $13.0 million primarily relates to the shiprepair and shipchartering
services completed but not yet billed at the end of reporting period, of which $5.7 million
have been billed subsequent to the end of financial year under review.

The Group recorded a net progress billings in excess of construction work-in-progress of

$1.5 million as at 30 June 2022 as compared to net construction work-in-progress of $3.0
million as at 30 June 2021 mainly attributed to milestone billing for a new shipbuilding
project secured.

Page 38 of 44
 Deferred income and deposits received from customers primarily relate to advance
payments received from customers for which charter services have not been rendered
and/or obligation to transfer goods. The deferred income and deposits will be recognised
as income when the services are performed.

Total borrowings
The breakdown of the Group’s total borrowings are as follows:
Group (Carrying Value) Group (Face Value)
Increase/ Increase/
30-Jun-22 30-Jun-21 (Decrease) 30-Jun-22 30-Jun-21 (Decrease)
$'000 $'000 $'000 % $'000 $'000 $'000 %
Current
Bonds 1,500 1,500 - - 1,500 1,500 - -

Trust receipts
- general 8,767 5,991 2,776 46.3 8,767 5,991 2,776 46.3
8,767 5,991 2,776 46.3 8,767 5,991 2,776 46.3
Term loans
- vessels loan 9,167 9,152 15 0.2 11,637 11,585 52 0.4
- assets financing 8,525 7,924 601 7.6 9,334 9,054 280 3.1
- working capital 17,887 18,682 (795) (4.3) 18,294 19,244 (950) (4.9)
35,579 35,758 (179) (0.5) 39,265 39,883 (618) (1.5)
Finance lease liabilities 285 362 (77) (21.3) 285 362 (77) (21.3)
46,131 43,611 2,520 5.8 49,817 47,736 2,081 4.4
Non-current
Bonds 102,819 95,734 7,085 7.4 132,000 133,500 (1,500) (1.1)
Term loans
- vessels loan 51,694 59,412 (7,718) (13.0) 57,261 67,227 (9,966) (14.8)
- assets financing 50,568 57,164 (6,596) (11.5) 53,037 60,506 (7,469) (12.3)
- working capital 57,532 72,247 (14,715) (20.4) 57,966 72,943 (14,977) (20.5)
159,794 188,823 (29,029) (15.4) 168,264 200,676 (32,412) (16.2)
Finance lease liabilities 172 457 (285) (62.4) 172 457 (285) (62.4)
262,785 285,014 (22,229) (7.8) 300,436 334,633 (34,197) (10.2)
Total borrowings 308,916 328,625 (19,709) (6.0) 350,253 382,369 (32,116) (8.4)

Total shareholders’ funds 68,583 98,168

Gearing ratio (times) 4.50 3.35
Net gearing ratio (times) 4.18 3.08

The increase in current portion of total borrowings (carrying value) by $2.5 million (5.8%)
to $46.1 million as at 30 June 2022 was mainly due to higher usage of trust receipts.

The Group’s total borrowings (carrying value) decreased by $19.7 million (6.0%) to
$308.9 million as at 30 June 2022 mainly due to net repayment of interest-bearing loans
and borrowings, partially offset by the accretion of interests on bank loans and bonds
measured at fair value.

The Group re-measured its bonds and long term loans arising from the debts refinancing
exercise at fair value (carrying value) pursuant to the adoption of SFRS(I)9. The face
value (nominal value) of the bonds and long term loans, has been separately disclosed
for information.

Non-current liabilities
Non-current liabilities decreased by $33.4 million (10.5%) to $285.5 million as at 30 June
2022 mainly due to decrease in the non-current portion of the Group’s total borrowings
and contract liabilities. The lower deferred income was mainly due to transfer of current
portion to current liabilities where income is recognised over the period when the services
were performed.

B. Variance from Prospect Statement

Not applicable as no forecast or prospect statement has been made.

Page 39 of 44
C. Outlook and Prospect

A commentary at the date of the announcement of the significant trends and

competitive conditions of the industry in which the group operates and any known
factors or events that may affect the group in the next reporting period and the
next 12 months.

1. Market and industry outlook

Our businesses are primarily driven by the market conditions in the infrastructure,
shipbuilding and shiprepair, shipping, and offshore & marine services industries. The
main macroeconomic variables affecting our performance include but are not limited
to the global logistics trade, oil & gas prices and infrastructure expenditure in Asia.

Our business performance is affected by and still subjected to the limitations of the
global COVID-19 pandemic. The overall global economy has since shown signs of
recovery but its macro trends remain mixed and uncertain:

a. Organization for Economic Co-operation and Development (“OECD”) estimated

global growth to slow sharply this year, to around 3%, and remain at a similar
pace in 20231. This is well below the pace of recovery projected last December
of 4.5% and last September of 5%. Prior to the war, the world economy was on
track for a strong, albeit uneven, recovery from COVID-19. The conflict in Ukraine
and the supply-chain disruptions exacerbated by shutdowns in China due to the
zero-COVID policy are dealing a blow to the recovery. Countries worldwide are
being hit by higher commodity prices, which add to inflationary pressures.

b. The outlook for transportation industry is affected by a weakening Chinese

economy and lower global economic growth. However, the regional maritime
infrastructure remains active.

c. Policymakers are increasingly implementing fiscal policies that support growth in

infrastructure, green energy, decarbonization, and sustainable resources projects.
Though the wider economy can benefit from the stronger and higher spending in
the long run, the projects are of long term commitments with higher financial risks
and burden, and it does not guarantee short to mid-term realization.

As we gradually return to normality from the COVID-19 pandemic, the management

believes the marine service industry is also recovering in tandem, barring the adverse
impacts that may be caused by a) potential resurgence of COVID-19; b) geopolitical
rivalry; c) rising interest rates and d) inflationary increase in the prices of energy, raw
materials as well as labour and staff costs due to shortages.

The management, with the support of various stakeholders, will continue to navigate
and manage foreseeable risks and long-run disruptions that the current political, social,
and economic environment present.

The management remains cautious towards market demands on our core business,
optimizing our current business processes and strengthen our foothold in supporting
the marine infrastructure work in Singapore and abroad. The Group had embarked
on leveraging its integrated marine engineering capabilities to explore and expand to
new growth areas anchored in environmental sustainability.

1
OECD Economic Outlook, June 2022
Page 40 of 44
 2. Business segments

Shipbuilding, Shiprepair, Conversion and Engineering Services

For shipbuilding segment, we continue to focus on securing orders for standardized
vessels like tugs, barges, tankers and dredgers with shorter delivery cycles and lesser
capital intensive. We will also continue to exercise caution with our selection of
customers based on their creditworthiness.

For shiprepair segment, the Group expanded its dry-docking capacity in Singapore
yard with a floating dock to capture the local shiprepair market for bunkering vessels
and cargo ships. The Group is actively expanding its marketing network and engaging
international customers. Seaborne transport is essential for international trade and
upswing of shipping activities which will spur the demand for maintenance and
shiprepairs.

Our engineering segment (VOSTA LMG) engages primarily in the land reclamation,
dredging and marine infrastructure industry. The demand is supported by a) the
fundamental demand from land reclamation and coastal protection projects; and b)
port expansion projects.

The Group will continue to improve its operational efficiency and tighten cost control
to enhance its competitiveness.

Shipchartering
The diversified vessel types in our fleet are expected to lend support to our chartering
business. We expect continued inflow of business from customers in the marine
infrastructure industry (such as land reclamation and dredging, port and bridge
construction) and cargo transportation sectors (such as carriage of aggregates and
nickel) in South Asia and South East Asia.

Order Book
As at 30 June 2022, the Group had an outstanding shipbuilding order book from
external customers of approximately $35 million for 3 vessels with progressive
deliveries up to 2H FY2024. Subsequent to 30 June 2022, the Group secured
additional shipbuilding contracts for 13 barges worth $24 million, all of which is
expected to be recognised in FY2023.

The Group's shipchartering revenue consists of mainly short-term and ad-hoc

contracts. Approximately 28% of shipchartering revenue in FY2022 was attributed to
long-term chartering contracts (meaning contracts with a duration of more than one
year). As at 30 June 2022, the Group had an outstanding ship chartering order book
of approximately $41 million with respect to long-term contracts.

D. Dividend

No dividend has been declared or recommended for the three months and the year
ended 30 June 2022 and in the previous corresponding periods after taking into
consideration the operating requirement, cash flow position of the Group and the current
market weakness, and to conserve cash for working capital usage.

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E. Interested Person Transactions

If the Group has obtained a general mandate from shareholders for IPTs, the
aggregate value of such transactions as required under Rule 920(1)(a)(ii). If no IPT
mandate has been obtained, a statement to that effect.

The Group has not obtained a general mandate from shareholders for interested person
transactions. During FY2022, the following interested person transactions were entered
into by the Group:

Notes:
Mr. Ang Sin Liu is the father of Ang Kok Tian, Ang Ah Nui and Ang Kok Leong, all of whom are Directors and
substantial shareholders of the Company. He is also the father of Ang Kok Eng and Ang Swee Kuan, both
of whom are also the substantial shareholders of the Company. Each of them is deemed to have an interest
in the shares held by the other.

F. Confirmation pursuant to Rule 720(1).

The Company confirms that it has procured the undertakings from all its Directors and
Executive Officers in the format set out in Appendix 7.7 under Rule 720(1) of the SGX-
ST Listing manual.

G. Breakdown of Sales
Group
Increase/
FY2022 FY2021 (Decrease)
$'000 $'000 $'000 %

Sales reported for first half year 103,854 81,569 22,285 27.3
Operating loss after tax before
deducting non-controlling interests
reported for first half year (15,785) (25,631) 9,846 (38.4)

Sales reported for second half year 131,702 111,391 20,311 18.2
Operating loss after tax before
deducting non-controlling interests
reported for second half year (16,410) (11,268) (5,142) 45.6

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H. Disclosure pursuant to Rule 704(13)

Disclosure of person occupying a managerial position in the issuer or any of its

principal subsidiaries who is a relative of a director or chief executive officer or
substantial shareholder of the issuer pursuant to Rule 704(13) in the format below.
If there are no such persons, the issuer must make an appropriate negative
statement.

Details of
Family relationship with changes in duties
any director, chief Current position and duties, and position
executive officer and/or and the year the position held, if any,
Name Age substantial shareholder was held during the year
No change
Ang Kok Tian 61 Brother of Ang Ah Nui and Appointed in 2003 as Chairman
Ang Kok Leong, both of whom and Managing Director and Chief
are Directors and substantial Executive Officer of the Company.
shareholders of the Company. Also acting as Executive Director
of certain principal subsidiaries of
Son of Ang Sin Liu and brother the Company.
of Ang Kok Eng and Ang
Swee Kuan, all of whom are Responsible for the Group’s
substantial shareholders of business strategies and direction,
the Company. corporate plans and policies as
well as the overall management,
development, operations, finance
and treasury functions of the
Group. Also in charge of the
Group’s shipbuilding division and
dredge engineering business.

No change
Ang Ah Nui 59 Brother of Ang Kok Tian and Appointed in 2003 as Deputy
Ang Kok Leong, both of whom Managing Director of the
are Directors and substantial Company. Also acting as
shareholders of the Company. Executive Director of certain
principal subsidiaries of the
Son of Ang Sin Liu and brother Company.
of Ang Kok Eng and Ang
Swee Kuan, all of whom are Jointly responsible for the Group’s
substantial shareholders of business strategies and direction,
the Company. corporate plans and policies. Also,
in charge of the Group's
shipchartering, shiprepair and
conversion business.

Ang Kok Eng 55 Brother of Ang Kok Tian, Ang Acting as Executive Director of No change
Ah Nui and Ang Kok Leong, all certain principal subsidiaries of the
of whom are Directors and Company since 2003.
substantial shareholders of
the Company. Responsible for the Group's
marketing and business
Son of Ang Sin Liu and brother development function for Asia.
of Ang Swee Kuan, both of Also in charge of the Group’s
whom are substantial management information systems.
shareholders of the Company.

Page 43 of 44
 Details of
Family relationship with changes in duties
any director, chief Current position and duties, and position
executive officer and/or and the year the position held, if any,
Name Age substantial shareholder was held during the year

Ang Kok Leong 54 Brother of Ang Kok Tian and Appointed in 2002 as Executive No change
Ang Ah Nui, both of whom are Director of the Company. Also
Directors and substantial acting as Executive Director of
shareholders of the Company. certain principal subsidiaries of the
Company.
Son of Ang Sin Liu and brother
of Ang Kok Eng and Ang Responsible for the Group's
Swee Kuan, all of whom are marketing and business
substantial shareholders of development function for Europe,
the Company. Middle East and other regions.
Also in charge of overseeing
engineering and research
development division of the Group.

Ang Sin Liu 87 Father of Ang Kok Tian, Ang Appointed in 2003 as Advisor to No change
Ah Nui and Ang Kok Leong, all the Company.
of whom are Directors and
substantial shareholders of Advising on the setting of Group's
the Company. business strategy and direction.

Father of Ang Kok Eng and

Ang Swee Kuan, both of
whom are substantial
shareholders of the Company.

Ang Kok Tian, Ang Ah Nui, Ang Kok Eng, Ang Kok Leong, Ang Sin Liu and Ang Swee
Kuan are substantial shareholders of the Company.

Ang Sin Liu is the father of Ang Kok Tian, Ang Ah Nui, Ang Kok Eng, Ang Kok Leong
and Ang Swee Kuan. Each of them is deemed to have an interest in the shares held by
the other.

I. Use of Proceeds

Refer to breakdown of convertible securities in section (I) F, Note 10 of this report. As of

to-date, the Group has not utilised proceeds of $81,600 received from the warrant
holders on their conversion of 1,360,000 warrants into shares.

BY ORDER OF THE BOARD

Ang Kok Tian

Chairman, Managing Director and CEO
29 August 2022

Page 44 of 44