Serba Dinamik has finally submitted its 18-month audit report for the financial period of January 2020 to June 2021, it has also stated that there is a deviation of 10% or more from the unaudited financial statement and the audited financial statements.
The group recorded an overall revenue of RM8.6 billion, however, despite the high revenue it was offset by RM7.1 billion cost of contracts with customers, and including other costs, the group recorded losses of RM185.37.
As for its deviation from the two financial statements, Serba in its unaudited report called to have made RM758.38 million in profits for the 18 month period ending June 2021, but the audited report shows a loss in the audited financial statement for the financial period. It added that the variance of more than 10% was mainly attributable to the adjustments of transactions is recorded, including impairment of trade receivables made by subsidiaries of the Group amounting to RM395 million which was underprovided during the release of the financial period ended 30 June 2021.
The group claimed the impairment was made in view of the limitation addressed by its newly appointed auditors Nexia SSY PLT, in its Auditors’ Opinion in obtaining appropriate audit evidence on trade receivables due to time limitations and occurrence of additional significant events. Hence it said the group decided to provide impairment of those trade receivables and in the event that those trade receivables are collected subsequently, it will reverse them.
In addition, the group had also written down inventories worth RM552.6 million due to current circumstances in which it has resulted in disruption and termination of several projects undertaken by the Group, by the customers.
