Basis for Disclaimer of Opinion (continued) Insufficient supporting documentation and records As of the date of this report, we were unable to obtain sufficient appropriate audit evidence to ascertain the carrying amounts of the balances presented in the statements of financial position of the Group and ECW as at 31 December 2024 nor the amounts relating to the transactions accounted for during the financial year as the Manager was unable to retrieve and provide the satisfactory supporting documentary information by the regulatory deadline. Consequently, we were unable to satisfy ourselves on the appropriateness of the carrying amounts of the financial position of the Group and ECW as at 31 December 2024, the occurrence and completeness of the transactions accounted for during the financial year then ended, nor the corresponding disclosures made in the accompanying financial statements. Accordingly, we were unable to determine whether any adjustment or additional disclosures that might be necessary to the accompanying financial statements for the financial year ended 31 December 2024. Going concern assumption As disclosed in Note 2.1(a) to the financial statements, as at 31 December 2024, the current liabilities of the Group and ECW exceeded their current assets by S$569,480,000 and S$113,510,000 respectively. The Group’s current liabilities include bank borrowings amounting to S$473,260,000, comprising S$347,396,000 of offshore loans (the “Offshore Facility”) and S$125,864,000 of onshore loans (the “Onshore Facility”), both of which are repayable on demand due to the occurrence of a number of events of default. ECW’s current liabilities include loans from subsidiaries of S$331,943,000 which is repayable on demand and will require repayment from ECW if the Offshore Facility is not refinanced as the Offshore Facility was drawn down by the subsidiary for the purpose of funding ECW and the Group. These factors, along with the other matters disclosed in Note 2.1(a) to the financial statements, indicate the existence of material uncertainties that may cast significant doubt on the ability of the Group and of ECW to continue as going concerns. Notwithstanding this, the going concern assumption has been used in the preparation of the accompanying financial statements as the Manager is confident of successful outcomes from the various measures to generate sufficient cash flows as described in Note 2.1(a), including plans to divest the Group’s properties and negotiations to refinance the bank borrowings. However, we were unable to obtain sufficient appropriate audit evidence regarding the outcomes of these measures and the appropriateness of the use of the going concern assumption for the preparation of the accompanying financial statements. If the Group and ECW are unable to continue in operational existence for the foreseeable future, the Group and ECW may be unable to discharge their liabilities in the ordinary course of business and adjustments may have to be made to reflect the situation that assets may need to be realised other than in the ordinary course of business and at amounts which could differ significantly from the amounts at which they are currently recorded in the statements of financial position. In addition, the Group and ECW may have to provide for further liabilities that may arise, and to reclassify non-current assets as current assets and non-current liabilities as current liabilities respectively. The accompanying financial statements do not include any of these adjustments. ANNUAL REPORT 2024 71 INDEPENDENT AUDITOR’S REPORT TO THE UNITHOLDERS OF EC WORLD REAL ESTATE INVESTMENT TRUST (CONSTITUTED UNDER A TRUST DEED IN THE REPUBLIC OF SINGAPORE)
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