Auditor issues disclaimer of opinion on Scomi Energy Services

TheStar Mon, Nov 01, 2021 10:04am - 2 years View Original


KUALA LUMPUR: The board of directors of Scomi Energy Services Bhd has announced that its external auditor Messrs Crowe Malaysia PLT has expressed a disclaimer of opinion in its audit report in respect of the financial statement for the financial year ended June 30, 2021.

"We do not express an opinion on the accompanying financial statements of the Group and of the Company.

"Because of the 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," said Crowe in its report on the audit of financial statements.

According to the auditor, the preparation of the financial statement on a going concern basis is highly dependent on the approval and successful implementation of the group's debt restructuring plan and regularisation plan.

It noted that there are material uncertainties as to whether these plans would be approved and successfully implemented.

"There are material uncertainties as to whether these plans would be approved and be successfully

implemented. If these are not successfully implemented, the Group and the Company may be unable to realise their assets and discharge their liabilities in the ordinary course of business.

"Accordingly, the financial statements may require adjustments relating to the recoverability and classification of recorded assets as well as additional amounts of liabilities and classification of liabilities.

"This indicates that a material uncertainty exists that may cast significant doubt on the Group’s and the Company’s ability to continue as going concerns," said Crowe.

Also serving as the basis for its disclaimer of opinion, the auditor said it had not been able to obtain bank confirmation replies on certain borrowings as well as sufficient appropriate audit evidence in the areas of trade payables, foreign exchange reserve, non-controlling interests, material financial information of two subsidiaries and intercompany balances.

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