Scomi Energy Services external auditor issues disclaimer of opinion

KUALA LUMPUR: Scomi Energy Services Bhd's external auditor Messrs Crowe Malaysia PLT has issued a disclaimer of opinion on the company's recent financial statement for the financial year ended June 30, 2021.

In the independent auditor's report in the company's financial statements, it said 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.

"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," it added.

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.

In an update, Scomi Energy Services said in a Monday filing with Bursa Malaysia that its subsidiary Scomi Marine Services Pte Ltd (SMS) had entered into a conditional shares purchase agreement with PT Surya Indah Muara Pantai on Aug 26, 2021, to dispose of its 80.54% equity interest in PT Rig Tenders (PTRT) for a cash consideration of US$9.5mil.

The proposed disposal has received the approval of Scomi Energy Services’ shareholders and is expected to be completed by end November 2021. .

"The Proposed PTRT Disposal is a first step for the Company to restructure its debt obligations and to partially settle its debt obligations and raise working capital," it said.

Meanwhile, the company has appointed a principal adviser to advise the Company on a regularisation plan as well as submitted an application to Bursa Securities to seek an extension of time for submitting its proposed regularisation plan up to April 30, 2022.

"To-date, we have been closely engaging our secured lenders and are in discussions on options to find an amicable solution for the debt resolution.

"Subject to Bursa Securities’ approval for our extension of time, the Company will issue an announcement on its regularisation plan in due course," it added.
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