INTRODUCTION

Reference is made to the announcements of the unaudited fourth quarter financial results ended 31 December 2022 (“Q4/2022 Unaudited Financial Results”) and the audited financial statements (“AFS”) of TRC Synergy Berhad (“TRCS”) for the financial year ended 31 December 2022  which were released to Bursa Malaysia Securities Berhad (“Bursa Securities”) on 28 February 2023 and 28 April 2023 respectively.

DEVIATION BETWEEN THE Q4/2022 UNAUDITED FINANCIAL RESULTS AND THE AFS

Pursuant to paragraph 9.19 (35) of the Main Market Listing Requirements of Bursa Securities, the Board of Directors of TRCS wishes to announce that there is a variance of more than 10% between the AFS and Q4/2022 Unaudited Financial Results, in respect of the net profit after taxation and non-controlling interests of TRCS of RM53.29 million in the AFS as compared to RM22.30 million as announced in the Q4/2022 Unaudited Financial Results.

The details of the deviation are as follows:

The variance of more than 10% was largely attributable to the followings:                            

1. The recognition of the favourable Arbitration Settlement awarded to a 90% owned subsidiary company amounting to RM39.18 million where the appropriate accounting treatment was not finalized when Q4/2022 Unaudited Financial Results was announced; and
2. The provision of allowance for expected credit loss on trade and other receivables of RM7.77 million and impairment loss on investment in an associate of RM1.39 million where the impairment was not anticipated based on management assessment and hence not accounted for in the Q4/2022 Unaudited Financial Results.

The announcement is dated 28 April 2023.