Atlantic Navigation Singapore : 23 Aug 2021 | Response to SGX Queries

ATLANTIC NAVIGATION HOLDINGS (SINGAPORE) LIMITED

(Company Registration No. 200411055E)

________

RESPONSES TO QUERIES RAISED BY THE SINGAPORE EXCHANGE REGULATION

The Board of Directors (the "Board") of Atlantic Navigation Holdings (Singapore) Limited (the "Company", and together with its subsidiaries, the "Group") refers to the Company's announcement dated 13 August 2021 (the "Announcement") on its unaudited condensed interim consolidated financial statements for the six months ended 30 June 2021 and wishes to provide its responses to the following queries raised by the Singapore Exchange Regulation Pte. Ltd. ("SGX RegCo") on 20 August 2021, as follows:

SGX RegCo's Queries			Company's Responses
1. It is disclosed in	the	P/L	that	(i)	For 2QFY2021 financial results, vessel valuation across the entire fleet
impairment	of	PPE	was		of vessels was conducted by Cleghorn, Wilton & Associates, Ltd. (the
US$8.0m for 1HFY2021.			"Valuer"), established in the UAE in 1979 and it has been the Group's
In para 2.2(b)(ii), it was stated		valuer since its inception. The date of the valuation is 30 June 2021.
that an impairment exists when	(ii)	The Group engages the Valuer which provides valuations for a view of
the carrying value of an asset or		the market value, having taken into consideration mainly the vessel's
cash generating unit exceeds its		age, size, type and characteristics, based on a sale between a willing
recoverable	amount,	which is		buyer and a willing seller and its own professional knowledge. Such
the higher of its fair value less		valuation as determined being the market value is deemed as the
costs of disposal and its value in		recoverable amount, and the impairment is determined as the
use.	The	Group	engages		difference between the recoverable amount and the book value as at
independent	professional		30 June 2021.
valuation expert	to	perform
valuations	of the	recoverable	(iii)	The Board confirms that it is satisfied with the reasonableness of the
amount of its vessels based on		methodologies used to determine the amount of impairment.
fair value less costs of disposal.	(iv)	Please see above responses to part (i) and (ii) on how the impairment
Please	disclose the	following		was determined and the main factors taken into consideration.
information:

1. Whether any valuation was conducted; and if so, the basis and date of such valuation, the valuer;
2. Please elaborate on how the recoverable amount and the impairment loss amount is determined;
3. The Board's confirmation as to whether it is satisfied with the
   reasonableness of the
   methodologies used to

1

SGX RegCo's Queries

Company's Responses

determine amount of impairment; and

1. Please elaborate on the reasons for the impairment loss.

2. The Group recorded current

(i) Aging schedules of the Group's trade receivables are set out below:

trade receivables of US$8.6m.

Please disclose the following:

30 June 2021

(i) Aging of the Group's trade

Trade receivables (Gross)1

US$'000

8,359

receivables;

(ii) The Company's plans to

Unbilled receivables

131

Retention receivable2

1,963

recover the

trade

receivables

10,453

and what are the actions taken

Provision for impairment, cumulative*

(1,841)*

to recover them;

Net receivables

8,612

(iii) Whether the receivables are

due from major customer(s) and

Notes:

whether

the

Company

continues to transact with these

1. Aging of Trade Receivables

customer(s);

Provision

Collection to-

(iv) The Board's opinion on the

Aging past

Gross

for

Net

date

reasonableness

of

the

due

impairment

methodologies

used

to

US$'000

US$'000

US$'000

US$'000

%

determine the value of the

Current /

impairment of the trade and

Not Due

3,066

-

3,066

1,052

34%

other receivables; and

1 - 30 days

2,198

-

2,198

2,006

91%

(v) The Board's assessment of

31 - 60 days

732

-

732

704

96%

the recoverability of

the

60 - 90 days

75

-

75

39

52%

remaining

trade

and

other

91-150 days

46

(25)

21

9

43%

receivables.

> 150 days

2,242

(1,816)

426

426

100%

Total

8,359

(1,841)*

6,518

4,236

65%

• There was no additional provision for impairment during 1HFY2021. Please refer to Note 19, Page 84 of Annual Report 2020 for details.

2. Aging of Retention Receivables

Aging past due	Gross	Collection to-date
US$'000	US$'000	%
Current / Not Due	664	-	NA
> 90 days	1,299	1,299	100%
Total	1,963	1,299

1. The Group engages and maintains close working relationships with its customers where the majority of them are vessel-chartering customers with on-going relationships and contracts. To-date, as shown in the tables above, the majority of the due payments had been paid. Please also see responses to 2(iii) below.

2

SGX RegCo's Queries		Company's Responses
	(iii)	Approximately 86% of the aging past due are related to 5 major
		customers, out of which approximately 79% of these past due have
		already been paid to-date.
		These major customers are vessel-chartering customers which the
		Group has been working for a long period of time and are mainly
		national oil companies and reputable international contractors with
		established presence in the Middle East. Over the past years, there
		have been no impairments related to these customers.
		On the basis above, the Company intends to continue to transact with
		these customers.
	(iv)	On the advice of the management, the Board is of the opinion that the
		methodologies used to determine the value impairment of trade
		receivables as disclosed on Note 2.2(b)(iii) of the Announcement are
		reasonable. There was no additional provision for impairment of trade
		and other receivables for 1HFY2021.
	(v)	On the advice of the management, the Board expects the trade and
		other receivables, net of provision for ECL as per Note 2.2(b)(iii) of the
		Announcement to be recoverable as at 30 June 2021.

By Order of the Board

Wong Siew Cheong

Executive Director and Chief Executive Officer

23 August 2021

This announcement has been reviewed by the Company's sponsor, SAC Capital Private Limited (the "Sponsor"). It has not been examined or approved by the Singapore Exchange Securities Trading Limited (the "SGX-ST") and the SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made or reports contained in this announcement.

The contact person for the Sponsor is Ms Lee Khai Yinn (Tel: [phone]) at 1 Robinson Road, #21-00 AIA Tower, Singapore 048542.

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