Ocean Sky International Limited - Ocean Sky International Ltd ...

5. WORKING CAPITAL
The Directors are of the opinion that, after taking into account the present banking facilities and
the net proceeds from the issue of New Shares by our Company, our Group will have adequate
working capital for its present requirements.
In the opinion of the Directors, there are no minimum amounts which must be raised by the issue
of the New Shares in order to provide for the following:-
(i) the purchase price or any property purchased or to be purchased;
(ii) estimated preliminary expenses (including underwriting and placement commission) for the
Invitation payable by our Company;
(iii) the repayment of any money borrowed by our Company in respect of any of the foregoing
matters; and
(iv) working capital.
Although no minimum amount must be raised by the Invitation in order to provide for the items set
out above, the estimated amount to be provided for the item set out in (ii) above is approximately
S$1.7 million. Such amount is proposed to be provided out of the proceeds of the Invitation or, in
the event the Invitation is cancelled, out of the existing banking facilities or internal funds.
6. LOAN CAPITAL AND OTHER BORROWINGS
Save as disclosed on page 31 of this Prospectus and the “Accountants’ Report”, our Group had no
other borrowings or indebtedness in the nature of borrowings including bank overdrafts and
liabilities under acceptances (other than normal trading bills) or acceptance credits, mortgages,
charges, hire purchase commitments, guarantees or other material contingent liabilities as at 30
June 2002.
7. FINANCIAL CONDITION AND OPERATIONS OF OUR GROUP
Save as disclosed in this Prospectus, the Directors are not aware of any material information
including trading factors or risks which are unlikely to be known or anticipated by the general public
and which could materially affect the profits of our Company and its subsidiaries.
Save as disclosed in this Prospectus, the financial condition and operations of our Group are not
likely to be affected by any of the following:-
(i) known trends or known demands, commitments, events or uncertainties that will result in or
are reasonably likely to result in our Group’s liquidity increasing or decreasing in any
material way;
(ii) material commitments for capital expenditure;
(iii) unusual or infrequent events or transactions or any significant economic changes that
materially affected the amount of reported income from operations; and
(iv) known trends or uncertainties that have had or that our Group expects to have a material
favourable or unfavourable impact on revenues or operating income.
8. LITIGATION
We are not engaged in any litigation either as plaintiff or defendant, in respect of any claims or
amounts which is material in the context of the Invitation, and our Directors have no knowledge of
any proceedings pending or threatened against our Group or any facts likely to give rise to any
litigation, claims or proceedings which might have a material effect on the financial position or
business of our Group.
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