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Abterra gets extension to release FY2018 results by June 30
MAINBOARD-LISTED mineral and resources company Abterra Ltd has obtained the Singapore Exchange's approval for an extension to release its unaudited FY2018 results by June 30, the company said in a bourse filing on Thursday night.
Abterra was originally due to report its FY2018 results by March 1, 2018.
It had previously applied for a two-month extension to release fiscal 2018 results by April 30, which the bourse rejected. It again applied for an extension due to a delay in sending required information and documents to its new auditors, Messrs Foo Kon Tan LLP.
An audit of the information will likely result in significant adjustments to the group's unaudited FY2018 results, including the opening balance, Abterra said.
The information included management assessment and purchase price allocation (PPA) reports for two acquisitions - 61.25 per cent of shares in Sunny Energy Limited and 51 per cent equity interest in Tianjin Belong Faith Energy Minerals Co.
Completed in May 2009, the Sunny Energy acquisition included beneficial equity interest in its subsidiaries Shenzhen Manxin Trading Co, Shenzhen Chuangrongxin Trading Co and an associated company, Shanxi Fenxi Ruitai Zhengzhong Coal Limited.
The Tianjin Belong acquisition was completed in June 2017, through the acquisition of Tianjin's controlling shareholder Lead China Development Limited and its subsidiaries.
According to Abterra, the auditor needed to review management's assessment on whether these transactions are business acquisitions in accordance with the relevant accounting standards.
The auditor also needed to review relevant PPA reports and any other supporting documents to "ascertain the accuracy and appropriateness of the fair value of the identifiable assets and liabilities, intangible assets and the resultant goodwill or bargain purchase arising from the acquisitions".
The company said it required more time to obtain the information as its finance manager joined only on Oct 22, 2018, after the acquisitions had been completed.
Abterra added that it cannot locate the PPA reports, and that its previous auditors, Mazars LLP, did not allow Messrs Foo Kon Tan to review their working papers.
Abterra said its management is continuing to search its records for supporting documents related to the Sunny Energy Transaction.
It is also, in consultation with its auditors, reviewing potential valuers to carry out PPA assessment for the Tianjin Belong acquisition.
The auditors had to review the acquisitions as part of its audit of Abterra's FY2017 results, and expects to complete the audit by mid-June. Afterwhich, it will be able to advise whether there are any more material audit adjustments to be made to the group's unaudited FY2018 results.
Abterra's shares closed flat at S$0.045 on Thursday.