Asia-Pacific Strategic Investments Limited - Annual Report 2021

Independent Auditor’s Report To the Members of Asia-Pacific Strategic Investments Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Asia-Pacific Strategic Investments Limited (the “Company”) and its subsidiary corporations (the “Group”), which comprise the consolidated balance sheet of the Group and the balance sheet of the Company as at 30 June 2021, and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows of the Group for the financial year then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 56 to 122. In our opinion, the accompanying consolidated financial statements of the Group and the balance sheet of the Company are properly drawn up in accordance with the provisions of the Singapore Companies Act, Chapter 50 (the “Act”) and Singapore Financial Reporting Standards (International) (“SFRS(I)”) so as to give a true and fair view of the consolidated financial position of the Group and the financial position of the Company as at 30 June 2021 and of the consolidated financial performance, consolidated changes in equity and consolidated cash flows of the Group for the financial year ended on that date. We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group in accordance with the Accounting and Corporate Regulatory Authority (“ACRA”) Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (“ACRA Code”) together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Basis for Opinion

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current year. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

1.

Valuation and impairment of assets

As the effects of the coronavirus (“COVID-19) spread across the entire world, including the countries in which the Group operates, the primary focus for governments and businesses is the safety of their people. Stringent travel restrictions and safe distancing measurements imposed on a global scale to battle the spread of COVID-19 have had severe repercussions on the hospitality and real estate industries. This gives rise to financial statements risk such as the determination of valuation of the Group’s significant assets in the real estate development business in the People’s Republic of China (“PRC”) which comprise property, plant and equipment of the Group’s hotel operations, development properties of the Group’s mixed development of prime residential and commercial properties (collectively, the “Huzhou Project”) and other receivable in relation to the reimbursement of infrastructure expenditures for the Huzhou Project due from the District Government of Nanxun District, Huzhou City of Zhejiang Province, PRC (the “Nanxun District Government”).

ASIA-PACIFIC STRATEGIC INVESTMENTS LIMITED

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