KUCHING: Sarawak Cable Bhd’s external auditor Messrs Baker Tilly Monteiro PLT has issued a disclaimer of opinion on the group’s financial statement for the year ended May 31, 2023.
The auditor said it was engaged to audit Sarawak Cable’s financial statements, which comprise the statements of financial position as at May 31, 2023 of the group and company, and the statement of comprehensive income, statements of changes in equity and statements of cash flows of the group and company, and notes to the financial statements, including a summary of significant accounting policies.
“We do not express an opinion on the accompanying financial statements of the group and of the company. Because of their significance of the matters described in the Basis for Disclaimer of Opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements,” it added in a report filed by Sarawak Cable with Bursa Malaysia.
On the basis for disclaimer of opinion, Baker Tilly said Sarawak Cable incurred net loss of RM98.7 million and RM61.3 million at group and company level respectively as at May 31, 2023, and their current liabilities exceeded their current assets by RM237.9 million and RM401.5 million respectively and recorded a capital deficiency of RM63.9 million and RM104.5 million respectively.
On Sept 30, 2022, Sarawak Cable said it was considered a PN17 listed issuer.
“The afore mentioned events or conditions indicate that material uncertainties exist that may cast significant doubt on the group’s and company’s ability to continue as going concerns. Nevertheless, the directors continued to prepare the financial statements on a going concern basis.”
The group is in the process of formulating a plan to regularize its financial conditions in tandem with the proposed scheme or arrangement.
The auditor said the directors of Sarawak Cable have not finalised the whole proposed regularisation plan. The proposed regularisation plan is subject to the company’s shareholders’ and relevant regulatory approvals.
“We have not been provided with the cash flow forecast incorporating the effects arising from the proposed regularisation plan to assess the ability of the group and of the company to continue as going concerns.
“Accordingly, we are unable to obtain sufficient appropriate audit evidence to support the validity of the assumption adopted by the directors in preparing the financial statements on a going concern,” said Baker Tilly.
In an unrelated development, Serba Dinamik Holdings Bhd (SDHB) said Public Bank Bhd (PBB) has filed an application in the High Court for auction directions for the five parcels of properties located at Lot No 374, Seksyen 11,Shah Alam, Petaling district in Selangor.
The court has fixed Nov 6, 2023 to hear the bank’s application.
On May 24, 2023, SDHB said its major subsidiary Serba Dinamik Sdn Bhd (SDSB) had defaulted on its payment for term equity and financing facilities provided by PBB and Public Islamic Bank Bhd (PIBB).
The amount of default to PBB on Feb 3, 2023 was overdraft of RM528,216 as at Jan 10, 2023.
The default to PIBB include Term Equity Financing-i (1) of about RM9.58 million, Term Equity Financing-i (2) RM3.24 million and Term Equity Financing-i (3) RM1.285 million, all as at Jan 8, 2023.
