Serba Dinamik finally submits its 2022 annual report after much delay

KUALA LUMPUR (Jan 12): Serba Dinamik Holdings Bhd has submitted its 2022 annual report for the financial year ended June 30, 2022 (FY2022), together with its audited consolidated financial statements for FY2022, to Bursa Malaysia Securities Bhd on Thursday (Jan 12), after much delay since Oct 31, 2022.

Serba Dinamik's share trade was suspended on Dec 23, 2022, following the group’s failure to submit its 2022 annual report by the extended deadline. Bursa Malaysia had on Nov 1, 2022 granted the company an extension of time until Dec 15, 2022.

When Serba Dinamik failed to meet the Oct 31, 2022 deadline, the financially distressed oil and gas services provider said it faced challenges for the completion of the audit by the external auditors due to lack of personnel arising from the resignation of many staff across the organisation, including its chief financial officer and the financial controller in September 2022.

Serba Dinamik said the company's finance team has to also adapt to new work processes in facilitating the interim liquidator and his team in carrying out their duties in managing the company's financial and operational affairs.

The group appointed Victor Saw Seng Kee of PricewaterhouseCoopers Advisory Services Sdn Bhd on Aug 23, 2022 as the interim liquidator.

In addition, there was also a delay in finalising the responsibility of the audit fees and other incidental obligations, Serba Dinamik said in its Bursa Malaysia filing.

Focus on financial health

Nevertheless, in the 2022 annual report, chairman Datuk Abdul Kadier Sahib said the group will focus on financial health and continually transform its business models to cater to global changes in the energy industry.

“As new energies slowly replace fossil fuel, we need to be prepared to offer services in line with this inevitable energy transition,” he said.

“We will also ensure that we continuously attract, train, and retain employees in this competitive industry. Serba Dinamik understands that an organisation’s strength is determined in large part by the quality of its talent.”

Abdul Kadier said the group will attract good talent by demonstrating good culture and offering competitive pay with advancement opportunities.

Serba Dinamik group managing director and chief executive officer Datuk Dr Mohd Abdul Karim Abdullah said the Practice Note 17 (PN17) company is looking into formulating a plan to regularise its financial condition in approximately one month.

“We would like to assure everyone that we will be able to get back on track and continue to rebuild Serba Dinamik to greater heights,” he said.

“We are anticipating resolving the statutory issues through a three-year programme, tracked with milestones. The process may seem to have taken a little longer than expected but we are confident that we will see better times ahead,” Mohd Abdul Karim added.

For FY2022, the group recorded revenue of RM1.35 billion with gross loss of RM1.09 billion mainly due to the outcome from the debt settlement scheme and the presence of the interim liquidator initiatives undertaken.

The company’s cash balance at the end of FY2022 was reduced to RM34.04 million compared to RM434.96 million at end-FY2021, due to negative operating and financing cash flows incurred during FY2022.

Meanwhile, the company’s net assets for FY2022 were RM1.91 billion, a reduction of RM1.06 billion from the value of net assets recorded at FY2021 equivalent to RM2.97 billion.

The counter last traded at one sen, giving the group a market capitalisation of RM37.1 million.