Raffles Status Update of Finalizing Year-End Financial Statements
Updated: Apr 19
Disclosure of Financial Information of the Major Operating Subsidiary
Singapore, December 21, 2021 – Raffles Financial Group Limited (CSE: RICH) (FSE: 4VO) (OTCQX:RAFFF) (“Raffles”, the “Company” and together with its subsidiaries collectively as the “Group”) wishes to ensure that it continues to keep all of our shareholders updated on the affairs of the Company, and as such the Board is today releasing an update on Raffles' status of finalizing the Group's year-end financial statements. As disclosed in the RFG’s news release dated 21 December 2021, RFG had successfully retrieved certain financial information that would be crucial in finalizing its audit financial statement. Today RFG wishes to update our shareholders that, despite our management's efforts in supplementing the necessary information to the Group's Auditor to expedite the audit for the aforesaid financial information, they notified RFG that they are unable to proceed and complete the audit until they return from the holiday in early January 2022. Therefore, RFG expects the audit cannot be completed until January 2022 whereas RFG will work with the Group’s Auditor to pursue filing the Annual Filings as soon as they are available.
On the other hand, the audit on the only operating subsidiary of RFG, Raffles Financial Pte. Ltd. ("RFP"), which is performed by another auditor in Singapore, is completed and its audit report [ The financial statements in the audit report of RFP are the separate financial statements of RFP prepared in accordance with Singapore Financial Reporting Standards. RFP is exempted from preparation of consolidated financial statements as it is a wholly-owned subsidiary corporation of Raffles Financial Group Limited which produces consolidated financial statements available for public use.] is issued to the Board. RFG believes RFP's audited financial information is relevant information for our shareholders to understand the financial performance of Raffles. Therefore, although the Group’s audit is still pending, the Board wishes to present the following management discussion and analysis of the key financial performance of RFP to our shareholders with reference to the RFP’s audit report.
OVERALL PERFORMANCE OF THE MAJOR OPERATING SUBSIDIARY OF THE GROUP
Comparative Summary of Key Financial Metrics for the financial year ended June 30, 2020 (“FY2020”) and 2021 (“FY2021”);
OTHER LOSSES AND ALLOWANCES - NET
INCOME TAX PROVISION
FAIR VALUE GAINS - EQUITY INVESTMENTS
TOTAL COMPREHENSIVE INCOME
The Company's major and only operating subsidiary RFP is the sole business operating unit and revenue contributor of the Group. In FY2021, RFP recorded a revenue of S$4,999,880 which was derived from three major service segments, namely (i) Re-structuring and Corporate Finance Advisory service amounting to S$2,000,000 which was rendered at a point in time; (ii) IPO and Global Fund Raising Advisory service amounting to S$2,000,000 which was rendered over time, and (iii) licensing service amounting to S$999,880 which was rendered over time. The revenue decreased from S$8,866,672 in FY2020 to $4,999,880 in FY2021, which was attributable to (i) the COVID-19 pandemic which caused travel restrictions and shutdowns that delayed and suspended the delivery of our advisory and licensing services, and created difficulties for RFP in serving clients in most of the major cities RFP was operating including, among others, China, Hong Kong and Singapore, and (ii) suspension in licensing service with several PRC clients who were contracted with in FY2020.
Other income of S$9,161,901 represented mainly a dividend income derived from the RFP’s subsidiary. Other losses and allowance (net) were largely attributable to a waiver of loan receivables from RFP’s subsidiary and a write-off of certain receivables which shown slow repayment as per the repayment schedule. Whereas receivables have been written off, RFP continues to attempt to recover the receivables due. Where recoveries are made, the amount will be recognized in profit or loss as an income.
The total comprehensive income for the year increased from S$6,205,530 in FY2020 to S$6,459,896 in FY2021.
Shareholders may access the report here:
About Raffles Financial Group Limited
Raffles Financial Group is listed on the Canadian Securities Purchase under the stock symbol (CSE: RICH), the Frankfurt Stock Purchase under the stock symbol (FSE: 4VO) and the OTC Markets under the stock symbol (OTCQX: RAFFF).
Raffles Financial Pte Ltd is the operating subsidiary of Raffles Financial Group Limited.
Please visit www.rafflesfinancial.co for more information.
Raffles Financial Private Limited (a wholly owned subsidiary of Raffles Financial Group Limited) is an exempt corporate finance advisory firm, registered with the Monetary Authority of Singapore, which provides public listing advisory and arrangement services. RFP serves as advisor for family trusts, family offices and investment funds.
For more information, please contact:
Dong Shim, CFO 604-283-9853
Monica Kwok, Investor Relations Phone: +65 6909 8765 Email: email@example.com
Neither the Canadian Securities Purchase nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Purchase) accepts responsibility for the adequacy or accuracy of this release. Certain statements contained in this release may constitute "forward-looking statements" or "forward-looking information" (collectively "forward-looking information") as those terms are used in Canadian securities laws. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated", "anticipates" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events.