Incredible Holdings Ltd. Responds to SGX Queries on Delayed Loan, Working Capital, and Audit Issues

Breach of Loan Agreement: The lender is now in breach of the agreement, which stipulated funding within 20 working days of execution. The company has decided not to pursue legal action due to practical reasons, including its own weak cash flow and the likely low recoverable damages.

Operational Funding at Risk: The company’s daily operations and working capital have so far been supported by internal cash reserves from subsidiaries and deferred vendor payments. Cost-cutting measures have been implemented, and management believes it can sustain operations for the next six months. However, this is a temporary fix and introduces significant risk if new funding is not secured soon.

Investor Negotiations Underway: The company is actively in talks with a potential investor from China for a working capital injection and business investment. However, these negotiations are still in progress and there is currently no assurance of success.

Audit and AGM Delays:

The completion of the FY2024 audit and commencement of the FY2025 audit are stalled due to outstanding auditor fees. The company had planned to use the S\$500,000 loan to resolve these payments.
The company may need to negotiate deferred payment arrangements with its auditors for FY2025, which is subject to auditor approval.
AGMs for both FY2024 and FY2025 cannot be convened until audits are completed, creating compliance risks and potential regulatory scrutiny.

Finance Personnel Shortfall: The company’s ability to complete its audits is further hampered by the departure of its finance manager, leaving no finance personnel to support or manage audit processes. Recruitment of new staff or external parties is required, adding further uncertainty and delay.

Incredible Holdings Ltd. Responds to SGX Queries on Delayed Loan, Working Capital, and Audit Issues

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