G-Resources Group Limited — Audit Report / Information 2004

Oct 19, 2004

Listed Company Information

Listed Company Information
PALADIN<00495> - Results Announcement Paladin Limited announced on 19/10/2004: (stock code: 00495 ) Year end date: 30/6/2004 Currency: HKD Auditors' Report: Modified (Audited ) (Audited ) Last Current Corresponding Period Period from 1/7/2003 from 1/7/2002 to 30/6/2004 to 30/6/2003 Note ('000 ) ('000 ) Turnover : 10,808 10,338 Profit/(Loss) from Operations : 16,692 (51,344) Finance cost : (5,780) (12,841) Share of Profit/(Loss) of Associates : N/A N/A Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : 10,912 (64,185) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : 0.021 (0.121) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 10,912 (64,185) Final Dividend : Nil Nil per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : N/A Payable Date : N/A B/C Dates for Annual General Meeting : 30/11/2004 to 3/12/2004 bdi. Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS In preparing the financial statements, the directors have given careful consideration to the future liquidity of the Group in light of its net current liabilities of HK$183,970,000 and deficit in shareholders' funds of HK$50,880,000 as at 30 June 2004. The Group is dependent upon the financial support of its bankers and other lenders. As explained in note 18 to the financial statements, in September 2004, the Group obtained a commitment letter for a term loan facility from other banks to refinance the HK$ term loan of HK$623 million and other loan of HK$155 million (both together with the accrued interest and other bank charges). The HK$ term loan of HK$623 million and other loan of HK$155 million are due on 31 December 2004 and 1 October 2004 respectively. In addition, the Group is now in the process of soliciting new bankers to refinance the overdue US$ term loan of HK$78 million and the Additional Amount of HK$134 million which is equivalent to 10% of the excess of the value of the Group's properties under development as of 30 September 2004 performed by an independent professional valuer on an open market value over HK$660,000,000, as explained in note 19(c) to the financial statements. The Additional Amount shall be due for payment on 1 November 2004. Provided that the above term loan facility can be successfully obtained by the Group and the Group can successfully solicit new bankers to refinance the US$ term loan and the Additional Amount within a short period of time, the directors estimate the properties under development will be available for sale or pre-sale by 30 November 2004 and will be completed by 30 April 2005. Against this background, the directors consider that, with the continuing support of the Group's bankers and other lenders, the Group will be able to complete the development and to meet in full its financial obligations as they fall due for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis. 2. EARNINGS (LOSS) PER SHARE The calculation of the basic earnings (loss) per share is based on the net profit (loss) for the year of HK$10,912,000 (2003: net loss of HK$64,185,000) and on 528,271,615 (2003: 528,271,615) ordinary shares in issue during the year. 3. EXTRACT FROM AUDITORS' REPORT Fundamental uncertainty relating to the going concern basis In forming our opinion, we have considered the adequacy of the disclosures made in note 2 to the financial statements which explain that the Group is dependent upon the financial support of its banker and other lenders. In September 2004, the Group obtained a commitment letter for a term loan facility from other banks to refinance the HK$ term loan of HK$623 million and other loan of HK$155 million (both together with the accrued interest and other bank charges). The HK$ term loan of HK$623 million and other loan of HK$155 million are due on 31 December 2004 and 1 October 2004 respectively. In addition, the Group is now in the process of soliciting new bankers to refinance the overdue US$ term loan of HK$78 million and the Additional Amount of HK$134 million, as explained in note 19(c) to the financial statements. The Additional Amount shall be due for payment on 1 November 2004. Provided that the above term loan facility can be successfully obtained by the Group and the Group can successfully solicit new bankers to refinance the US$ term loan and the Additional Amount within a short period of time, the directors estimate the properties under development will be available for sale or pre-sale by 30 November 2004 and will be completed by 30 April 2005. Against this background, the directors consider that, with the continuing support of the Group's bankers and other lenders, the Group will be able to complete the development and to meet in full its financial obligations as they fall due for the foreseeable future. The financial statements have been prepared on a going concern basis, the validity of which depends upon the future funding being available. The financial statements do not include any adjustments that would result from failure to obtain such funding. We consider that the fundamental uncertainty has been adequately disclosed in the financial statements and our opinion is not qualified in this respect.