CSC : Response to queries raised by Singapore Exchange Regulation (SGX Regco) on 1 June 2022 with respect to the Company's Condensed Interim Financial Statements Announcement for the 6 months and 12 months ended 31 March 2022 released on 26 May 2022

Response to SGX Queries::

https://links.sgx.com/1.0.0/corporate-announcements/91BOAZQJ8DU...

RESPONSE TO SGX QUERIES::

Issuer & Securities

Issuer/ Manager

CSC HOLDINGS LIMITED

Securities

CSC HOLDINGS LTD - SG1F84861094 - C06

Stapled Security

No

Announcement Details

Announcement Title

Response to SGX Queries

Date &Time of Broadcast

03-Jun-2022 17:36:26

Status

New

Supplementary Title

On Financial Statements

Announcement Reference

SG220603OTHRR69X

Submitted By (Co./ Ind. Name)

See Yen Tarn

Designation

Executive Director & Group Chief Executive Of�cer

Description (Please provide a detailed description of the change in the box below)

Response to queries raised by Singapore Exchange Regulation (SGX Regco) on 1 June 2022 with respect to the Condensed Interim Financial Statements Announcement for the 6 months and 12 months ended 31 March 2022 of the Company released on 26 May 2022.

Attachments

Response_to_SGX_Regco_Queries.pdf

Total size =224K MB

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03-Jun-22, 5:37 PM

CSC HOLDINGS LIMITED

Co Registration No. 199707845E

RESPONSE TO QUERIES FROM SINGAPORE EXCHANGE REGULATION ON THE CONDENSED INTERIM FINANCIAL STATEMENTS ANNOUNCEMENT FOR THE 6 MONTHS AND 12 MONTHS ENDED 31 MARCH 2022

The Board of Directors (the "Board") of CSC Holdings Limited (the "Company", and collectively with its subsidiaries, the "Group") wishes to provide its responses to the queries raised by the Singapore Exchange Regulation ("SGX RegCo") on 1 June 2022 with respect to the Condensed Interim Financial Statements Announcement For the 6 Months and 12 Months Ended 31 March 2022 released on 26 May 2022.

SGX RegCo's Query 1:

Please disclose:

1. a breakdown of the Group's non-current trade and other payables amounting to $6.389 million as at 31 March 2022; and
2. the aging and nature of these payables and whether the counterparties are related parties.

Company's Response:

The non-current trade and other payables comprise the following:

As at

31 March 2022

$'000

Trade payables (not past due)

6,389

These non-current trade payables relate to the purchase of equipment and accessories under instalment arrangements with suppliers for 24 to 36 months. These suppliers are not related to the Group.

SGX RegCo's Query 2:

In relation to Note 10, we note that "from the date of acquisition to 31 March 2022, CA contributed revenue of $Nil and loss of $39,000 to the Group's results. If the acquisition had occurred on 1 April 2021, management estimated that consolidated revenue would have been $268,740,000 and consolidated profit (after tax) for the year would have been $634,000".

Please disclose whether Coldhams Alliance Pte. Ltd. ("CA") has ceased operations and if so, when did the operations cease and why did the Company increase its stake in a dormant entity. Please explain how the acquisition of the remaining 52.5% equity interest in CA is a strategy and long-term investment for the Company.

Company's Response:

CA did not cease operations. CA was established in 2018 as a joint venture company to invest in a residential development project in Cambridge, UK (the "Development") (refer to the Company's announcement dated 6 August 2018 for details). The Development was successfully completed in 2021.

After the completion of the Development and CA's distribution of profits to its shareholders, the Group acquired the remaining 52.5% effective equity interest in CA on 28 September 2021, enabling the Group to better optimise the operations and resources of CA for future investments in the UK. There was a net cash inflow of $32,000 arising from the acquisition of CA (refer to Note 10 on page 20).

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The Company is constantly looking for opportunities to expand its investment and development portfolio in the UK in order to diversify its revenue stream and to realise potential enhancement of shareholder value.

SGX RegCo's Query 3:

In relation to Note 17, please reconcile the amounts under "other related party transactions" to the interested person transactions on page 36, and explain the amounts that were not reported as IPTs and why these are not IPTs.

Company's Response:

The reconciliations between the "other related party transactions" ("RPT") and interested person transactions ("IPT") are as follows:

1. For the 12 months ended 31 March 2022

		Aggregate
		value of
		transactions	Long-term
		less than	lease which
		$100,000 with	was
		same	accounted as
	Per RPT in	interested	right-of-use	Per IPT on
Nature of transactions	Note 17	person	asset	page 36
	$'000	$'000	$'000	$'000
	A	B	C	D = A-B+C
		Note (i)	Note (ii)
Revenue from foundation	72	(72)	-	-
engineering works
Revenue from rental and service	196	(72)	-	124
income
Expenses related to short-term	1,311	(280)(1)	-	1,031
leases
Purchase of plant and equipment	258	(55)	-	203
Upkeep of machinery and	38	(38)	-	-
equipment expenses
Expenses related to long-term	-	-	697	697
lease which was accounted as
a right-of-use asset
Total	1,875	(517)	697	2,055

Note (i):

These transactions were not required in the IPT disclosure under Listing Rule 907 as the aggregate value of each category of transactions entered into with the same interested person was less than $100,000.

(1) Comprises of:

Interested person	Amount
	$'000
Tat Hong HeavyEquipment (Pte.) Ltd.	96
Tat Hong Vietnam Co. Ltd	78
Tat Hong Machinery Pte Ltd	56
Tat Hong Plant Hire Sdn Bhd	38
Other interested persons (aggregate transaction value with
individual interested person is less than $10,000)	12
Total	280

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CSC HOLDINGS LIMITED

Co Registration No. 199707845E

Note (ii):

The long-term lease for office space and yard was transacted with Tat Hong HeavyEquipment (Pte.) Ltd. ("THHE"). The lease was accounted as a right-of-use asset and a lease liability at the lease commencement date in accordance to Singapore Financial Reporting Standards (International) 16 Leases. The $697,000 in the IPT disclosure was the actual lease payments to THHE during the 12 months ended 31 March 2022.

1. For the 6 months ended 31 March 2022

		Aggregate
		value of
		transactions	Long-term
		less than	lease which
		$100,000 with	was
		same	accounted as
	Per RPT in	interested	right-of-use	Per IPT on
Nature of transactions	Note 17	person	asset	page 36
	$'000	$'000	$'000	$'000
	A	B	C	D = A-B+C
		Note (iii)	Note (iv)
Revenue from foundation	30	(30)	-	-
engineering works
Revenue from rental and service	107	17	-	124
income
Expenses related to short-term	584	(109)(2)	-	475
leases
Purchase of plant and equipment	54	(49)	-	5
Upkeep of machinery and	16	(16)	-	-
equipment expenses
Expenses related to long-term	-	-	339	339
lease which was accounted as
a right-of-use asset
Total	791	(187)	339	943

Note (iii):

These transactions were not required in the IPT disclosure under Listing Rule 907 as the aggregate value of each category of transactions entered into with the same interested person was less than $100,000.

(2) Comprises of:

Interested person	Amount
	$'000
Tat Hong HeavyEquipment (Pte.) Ltd.	33
Tat Hong Machinery Pte Ltd	55
Other interested persons (aggregate transaction value with
individual interested person is less than $15,000)	21
Total	109

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Note (iv):

The long-term lease for office space and yard was transacted with Tat Hong HeavyEquipment (Pte.) Ltd. ("THHE"). The lease was accounted as a right-of-use asset and a lease liability at the lease commencement date in accordance to Singapore Financial Reporting Standards (International) 16 Leases. The $339,000 in the IPT disclosure was the actual lease payments to THHE during the 6 months ended 31 March 2022.

By Order of the Board

See Yen Tarn

Executive Director and Group Chief Executive Officer

3 June 2022

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