The Company’s Annual Report 2021 to be issued by January 2022

KUCHING, Jan 3 (Bernama) -- Sarawak Consolidated Industries Berhad (“SCIB” or the “Company a civil engineering specialist, on 31 December 2021 has announced that the Company’s external auditor Nexia SSY PLT, had expressed a qualified opinion on the Company’s Audited Financial Statement for the financial period ended 30 June 2021 (“Audited Financial Statements”). The stock trading of SCIB is expected to be resumed after the completion of its annual report, tentatively by January 2022.
 
Additionally, SCIB wishes to announce that there is a deviation of more than 10% between the profit after tax and Non-Controlling Interest of the Company stated in the unaudited sixth quarterly results for the financial period ended 30 June 2021 announced on 30 September 2021 (“Unaudited Results”) and Audited Financial Statements.
 
The factors contributing to the deviation amongst others 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/ Chief Executive Officer of SCIB, 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. We would also like to take this opportunity to extend our sincere gratitude to Bursa Malaysia for their patience, while not forgetting our working team, audit committee, and the board of directors for the hard work and support throughout the audit process.

Even though we have experienced some setbacks, SCIB remains committed to creating value and optimising performance for the Company in the year ahead. We will continue our expansion into Peninsular Malaysia and East Malaysia. We have re-strategised our geographical positioning by taking a closer look at potential emerging markets especially in the home and neighbouring countries. The group will strengthen its focus by adding potential projects with high credible paymaster such as Jabatan Kerja Raya (“JKR”), government agencies, and other reputable entities. SCIB will also 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. This will ensure SCIB has adequate and effective monitoring, supervision, and reporting functions are in place.
 
As of 31 December 2021, our order book remains steady at RM1.2 billion, translating into healthy earnings visibility up to 2026. By focusing on leveraging our strength as the largest precast concrete and Industrialized Building System (“IBS”) manufacturer in East Malaysia, we can develop opportunities around Southeast Asia. Furthermore, SCIB will also plan to expand our manufacturing business at Peninsular Malaysia on top of adopting 3D printing technology into our construction projects, as we believe this will give us the necessary competitive edge to compete in the construction industry.
 
We wish to emphasise again that SCIB’s operations will continue as usual. We want to reassure all our stakeholders, business partners, vendors, and employees that we are doing our utmost to finalise the annual report by January 2022, allowing the recommencement for the trading of SCIB’s share” he added.

SOURCE: Sarawak Consolidated Industries Berhad (SCIB)

FOR MORE INFORMATION, PLEASE CONTACT: 
Name: Ahmad Tarmidzi Bin Mohd Sofie
Tel: 017 – 26 36 171

--BERNAMA