Sarawak Consolidated which has had its stock being suspended on Bursa, has submitted its financial audit report on the last day of the deadline after failing to get an extension from the Exchange.
The main board-listed civil engineering company expressed confidence that after the submission of the Company’s Audited Financial Statement for the financial period ended 30 June 2021 the stock trading is expected to be resumed after the completion of its annual report, tentatively by January 2022.
On the audit report, SCIB is also stating that there is a deviation of more than 10% between the profit after tax and Non-Controlling Interest of the Company which it stated in the unaudited sixth quarterly results for the financial period ended 30 June 2021 announced on 30 September 2021.
The factors contributing to the deviation include the recognition of a gain amounting to RM5.5 million in relation to the Settlement Agreement with Gaya Belian Sdn Bhd and others, which was reclassified from movement in reserves to other income, the recognition of a total net provision of impairment loss amounting to RM52.5 million which included the amount due from overseas projects of RM50.9 million, an additional RM2.6 million impairment losses based on the payment profiles of sales over 18 months period; and RM1 million reversal of impairment due to recognition of advance payment made for the project being awarded. Others include the RM1.7 million consultancy fees expensed off due to unsuccessful projects.
Group Managing Director Rosland bin Othman said, “SCIB has committed our full efforts to meet the deadline and complete the audited report. This is all possible because of our external auditor, Nexia SSY PLT (“Nexia”), who worked tirelessly to complete the audit in accordance with the relevant accounting and auditing standards.
On the business front, the group will re-strategise its geographical positioning by taking a closer look at potential emerging markets domestically and neighbouring countries. It will also strengthen its focus by adding potential projects with high credible paymaster such as Jabatan Kerja Raya, government agencies, and other reputable entities.
SCIB has also stated that it will establish a clear policy to ensure the completeness of the filing and retention of documentation for audit trail purposes and strengthen the internal control system and control activities of the Project Management division.
As of end 2021, its order book remains steady at RM1.2 billion, translating into healthy earnings visibility up to 2026. By focusing on leveraging its strength as the largest precast concrete and Industrialized Building System (“IBS”) manufacturer in East Malaysia, it can develop opportunities around Southeast Asia. The group will expand its manufacturing business in West Malaysia and adopt 3D printing technology into its construction projects.
