ANNUAL REPORT
2016
OPERATING
& FINANCIAL REVIEW
Use of
Net Proceeds
Amount allocated
as stated in the
Offer Document
(S$¡¯million)
Amount
utilised as at
31 March 2016
(S$¡¯million)
Balance of
Net Proceeds as
at 31 March 2016
(S$¡¯million)
Expansion of our operations locally and in other markets
and diversification into other luxury lifestyle business
6.00
1.50
1
4.50
General working capital
2.46
2.46
2
-
Total
8.46
3.96
4.50
S$3.20 million because of more purchases of new automobiles
particularly in March 2016 as compared to last reporting period;
an increase in financial liabilities of S$19.50million arisingmainly
from increases in short-term bank borrowings; and an increase
in other liabilities of S$2.24 million mainly due to an increase of
S$2.18 million of deposit received.
Cash Flow
In FY2016, the net cash used in operating activities amounted to
S$20.06 million. This comprised negative operating cash flows
before changes in working capital of S$4.29 million, adjusted
by net working capital outflow of S$15.59 million and taxes
paid of S$0.18 million. The net working capital outflow was
mainly due to increase in inventories of S$19.07 million, trade
and other receivables of S$1.25 million and other assets of
S$0.71 million, which was offset by increases in other liabilities
of S$2.24 million mainly due to deferred income recognised
under the sales and leaseback arrangement and trade and
other payables of S$3.20 million arising frommore purchases
of automobiles particularly near the financial year end.
Net cash used in investing activities amounted to S$2.78million in
FY2016. This was mainly due to the purchases of property, plant
and equipment of S$2.99 million, which was offset by proceeds
from disposal of property, plant and equipment of S$0.9 million
and interest received of S$0.12 million.
Net cash from financing activities amounted to S$19.92 million
in FY2016. This was mainly due to increase in financial liabilities
of S$22.67 million which was offset by finance lease repayment
of S$1.70 million and interest paid of S$1.05 million.
Update on use of Net Proceeds
Of the S$8.46 million of net proceeds raised from its IPO on 17
January 2014, the following table shows how the proceeds have
been utilised as at 31 March 2016:
PAGANI / HUAYRA BC
1 / The amount of S$1.50 million for expansion of our operations locally was utilised in the acquisition of a subsidiary.
2 / The amount of S$2.46 million deployed for general working capital includes the purchase of inventories and operating expenses.
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