Financial Statements
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APPENDIX D STATEMENT OF DIRECTORS’ RESPONSIBILITY The Directors are required by the Companies Act, 2016 (the “Act”) to prepare the financial statements of Scomi Group Bhd (the “Company”) and its subsidiaries (the “Group”) for each financial year which have been made out in accordance with the applicable Malaysian Financial Reporting Standards, the International Financial Reporting Standards, the provisions of the Act, and the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, and to present it before the Company at its annual general meeting. The Directors are responsible to ensure that the financial statements give a true and fair view of the Financial state of affairs of the Group and the Company as at 30 June 2019, and of the results and cash flows of the Group and the Company for the financial period ended 30 June 2019. In preparing the financial statements, the Directors have: Statements adopted appropriate accounting policies and applied them consistently; made judgments and estimates that are reasonable and prudent; and prepared the financial statements on a going concern basis. 048 Directors’Report The Directors are responsible to ensure that the Group and the Company keep accounting records 056 Statements of Financial Position which disclose with reasonable accuracy the financial position of the Group and the Company which enable them to ensure that the financial statements comply with the Act. 058 Statements of Profit or Loss & Other The Directors are also responsible for taking such steps as are reasonably open to them to preserve the Comprehensive Income interests of stakeholders, to safeguard the assets of the Group, and to detect and prevent fraud and other irregularities. 060 Consolidated Statement of Changes in Equity 062 Statement of Changes in Equity 063 Statements of Cash Flows 066 Notes to the Financial Statements 205 Statement by Directors 206 Statutory Declaration 207 Independent Auditors’ Report 218 Appendix Page 1 of 1 Draft – for discussion purposes and subject to final amendments 1 Scomi Group Bhd Directors’(Company No. 571212 Report-A) for the financial period ended 30 June 2019 (Incorporated in Malaysia) and its subsidiaries Directors’ report for the financial period ended 30 June 2019 The Directors hereby submit their report and the audited financial statements of the Group and of the Company for the financial period ended 30 June 2019. Principal activities The Company is principally engaged in investment holding activities whilst the principal activities of the subsidiaries are as stated in Note 6 to the financial statements. There has been no significant change in the nature of these activities during the financial period. As disclosed in Note 25 to the financial statements, the Group has deconsolidated the financial position and results of Scomi Engineering Bhd and its subsidiaries since January 2019. Subsidiaries The details of the Company’s subsidiaries are disclosed in Note 6 to the financial statements. Change of financial year end The financial year end of the Company was changed from 31 March to 30 June. Accordingly, the financial statements of the Company for the financial period ended 30 June cover a fifteen (15) months period compared to the twelve (12) months for the financial year ended 31 March 2018. Results Group Company RM’000 RM’000 Loss for the financial period attributable to: Owners of the Company (396,171) (182,771) Non-controlling interests (29,798) - (425,969) (182,771) Reserves and provisions On 31 January 2019, the Company has undertaken a reduction of RM440,000,000 of the issued share capital (“Capital Reduction Exercise”) pursuant to Section 116 of the Companies Act 2016. RM440,000,000 credit arising from such cancellation was being utilised to set-off against the accumulated losses of the Company. There were no other material transfers to or from reserves and provisions during the financial period under review except as disclosed in Note 25 to the financial statements. Dividends No dividend was paid during the financial period and the Directors do not recommend any dividend to be paid for the financial period under review. 48 Scomi Group Bhd Directors’Draft –Report for discussion for purposes the financial and subject period to endedfinal amendments 30 June 2019 2 Company No. 571212-A Consolidation of subsidiaries with different financial year end The following subsidiaries of the Company continue to have or to adopt a financial period which does not coincide with the Company in relation to the financial period ended 30 June 2019, subject to the following conditions:- (i) approval by the Companies Commission of Malaysia pursuant to Section 247(7) of the Companies Act 2016; and (ii) the Company is to ensure compliance with Sections 252 and 253 of the Companies Act 2016 and the approved accounting standards pertaining to the preparation of consolidated financial statements. Subsidiaries of the Company affected by the above are as follows: (a) Scomi Oiltools Inc; (b) Scomi Oiltools Russia LLC; (c) Scomi Oiltools (Europe) Ltd; (d) Scomi Oiltools de Mexico S de RL de CV; (e) PT Inti Jatam Pura; (f) PT Scomi Oiltools; (g) PT Multi Jaya Persada; (h) PT Rig Tenders Indonesia Tbk; (i) KMC Oiltools India Pvt Ltd; (j) KMC Oiltools Algeria EURL; (k) Wasco Oil Service Company Nigeria Ltd.; (l) Rig Tenders Marine Pte. Ltd.; (m) CH Logistic Pte. Ltd.; (n) CH Ship Management Pte. Ltd.; (o) Grundtvig Marine Pte. Ltd.; (p) Rig Tenders Offshore Pte. Ltd.; (q) Oilfield Services de Mexico S de RL de CV; (r) Urban Transit Servicos do Brasil LTDA*; and (s) Quark Fabricacao de Equipamentos Ferroviarios E. Servicos De Engenharia LTDA.* *These subsidiaries have been deconsolidated during the financial period as disclosed in Note 25 to the financial statements. Directors of the Company Directors who served during the financial period until the date of this report are: Shah Hakim @ Shahzanim bin Zain Foong Choong Hong Dato’ Sreesanthan A/L Eliathamby Lee Chun Fai Liew Willip Sammy Tse Kwok Fai (Appointed on 24 July 2018) Amirul Azhar bin Baharom (Appointed on 4 September 2019) Dato’ Mohd Shahrom bin Mohamad (Appointed on 4 September 2019) Dato’ Mohamed Azlan bin Hashim (Resigned on 14 April 2018) Tan Sri Nik Mohamed bin Nik Yaacob (Resigned on 19 July 2018) Cyrus Eruch Daruwalla (Resigned on 15 October 2018) Annual Report 2019 49 Directors’ ReportDraft – forfor discussionthe financial purposes period and ended subject 30 to June final 2019amendments 3 Company No. 571212-A List of Directors of Subsidiaries Pursuant to Section 253 of the Companies Act 2016 in Malaysia, the Directors of the subsidiaries who served during the financial period until the date of this report are disclosed in the Appendix on page ___ of the financial statements. Directors’ interests in shares The interests and deemed interests in the shares, and/or warrants over ordinary shares, of the Company and of its related corporations (other than wholly owned subsidiaries) of those who were Directors at financial period end (including the interests of the spouses or children of the Directors who themselves are not Directors of the Company) as recorded in the Register of Directors’ Shareholdings are as follows: Number of ordinary shares At At 1.4.2018/ Bought Sold 30.6.2019 Date of appointment ’000 ’000 ’000 ’000 The Company Direct interests Shah Hakim @ Shahzanim bin Zain 11,865 - - 1,865 Foong Choong Hong 205 - - 205 Sammy Tse Kwok Fai - 1 - 1 Indirect interests Shah Hakim @ Shahzanim bin Zain 288,726 - - 88,726 Number of warrants At At 1.4.2018 Bought Sold 30.6.2019 ’000 ’000 ’000 ’000 The Company Direct interests Shah Hakim @ Shahzanim bin Zain 4576 - - 576 Foong Choong Hong 103 - - 103 Indirect interests Shah Hakim @ Shahzanim bin Zain 544,056 - - 44,056 Number of ordinary shares At At 1.4.2018 Bought Sold 30.6.2019 ’000 ’000 ’000 ’000 Subsidiaries Scomi Energy Services Bhd (“SESB”) Direct interest Shah Hakim @ Shahzanim bin Zain 32,108 - - 2,108 Indirect interest Shah Hakim @ Shahzanim bin Zain 657 - - 57 50 Scomi Group Bhd Directors’Draft Report– for discussion for purposes the financial and subject period to endedfinal amendments 30 June 2019 4 Company No. 571212-A Directors’ interests in shares (continued) 1 886,214 shares held through Maybank Securities Nominees (Tempatan) Sdn Bhd pledged Securities Account for Shah Hakim @ Shahzanim bin Zain (Margin) and Maybank Nominees (Tempatan) Sdn Bhd pledged Securities Account for Shah Hakim @ Shahzanim bin Zain. 2 Deemed interested by virtue of Section 8(4) of the Companies Act 2016 through his shareholding in Kaspadu Sdn Bhd, Rentak Rimbun Sdn Bhd and Onstream Sdn Bhd. 3 Held through Maybank Securities Nominees (Tempatan) Sdn Bhd pledged Securities Account for Shah Hakim @ Shahzanim bin Zain (Margin). 4 372,821 warrants held through Maybank Securities Nominees (Tempatan) Sdn Bhd pledged Securities Account for Shah Hakim @ Shahzanim bin Zain (Margin) and Maybank Nominees (Tempatan) Sdn Bhd pledged Securities Account for Shah Hakim @ Shahzanim bin Zain. 5 Deemed interested by virtue of Section 8(4) of the Companies Act 2016 through his shareholding holding in Kaspadu Sdn Bhd, Rentak Rimbun Sdn Bhd and Onstream Sdn Bhd. 6 Deemed interested by virtue of Section 8(4) of the Companies Act 2016 through his shareholding in Rentak Rimbun Sdn Bhd. Save as disclosed above, none of the other Directors holding office at 30 June 2019 had any interest in the shares and options over shares of the Company and of its related corporations during the financial period. Directors’ benefits Since the end of the previous financial period, no Director of the Company has received nor become entitled to receive any benefit (other than a benefit included in the aggregate amount of remuneration received or due and receivable by Directors as shown in the financial statements or the fixed salary of a full time employee of the Company or of related corporations) by reason of a contract made by the Company or a related corporation with the Director or with a firm of which the Director is a member, or with a company in which the Director has a substantial financial interest other than those disclosed in Note 36 to the financial statements.