A. Application for Extension of Time (“EOT”)

Sarawak Consolidated Industries Berhad (“SCIB” or “the Company”) wishes to announce that in view of the change of external auditor and the impact of restrictions in movement in Malaysia and overseas arising from the COVID-19 pandemic, the audit of the financial statements for the financial period ended 30 June 2021 of SCIB Group ("AFS 2021”) was affected and the AFS 2021 could not be finalised in time for inclusion in the Annual Report for the financial period ended 30 June 2021 (“Annual Report 2021”) for issuance within 4 months from the close of the financial year of SCIB as stipulated under Paragraph 9.23(1) of the Main Market Listing Requirements (“MMLR”) of Bursa Malaysia Securities Berhad ("Bursa Securities"), i.e., by 31 October 2021 (“Due Date”).

In view of the above, the Company had on 8 October sought an EOT up to 31 December 2021 to issue its Annual Report 2021. However, Bursa Securities has vide its letter dated 25 October 2021 rejected the Company’s application for EOT.  

B. Outstanding Annual Report 2021 and Suspension of Trading

In the light of approved standards on accounting and auditing, the Company opined that the auditor should be given adequate time to perform their statutory obligations without interference and time constraints to ensure audit works can be conducted effectively and sufficiently. The auditor has stated in their audit plans that the AFS can only be finalised in December 2021. 

As a result of the dilemma circumstances, the Company has decided to uphold the compliances with the approved auditing and accounting standards by allowing the auditor to perform their duties without interference and time constraints.

We had on 25 October 2021 submitted an appeal to Bursa Securities and this announcement is subject to the approval of the appeal. 

In view of the above rejection of the Company’s EOT application by Bursa Securities and pursuant to Paragraphs 9.28(3) and 9.28(4) of the MMLR, the Company wishes to announce that it will not be able to issue its Annual Report 2021 by the Due Date.

As explained above, the Company will not be able to issue its Annual Report 2021 by the Due Date as the AFS 2021 could not be finalised in time for inclusion in the Annual Report 2021 due to change of external auditor and the impact of restrictions in movement in Malaysia and overseas arising from the COVID-19 pandemic.

The information on suspension of trading of SCIB’s securities in view of the delay in the issuance of Annual Report 2021 are as follows:-

a. The suspension of trading of SCIB’s securities will be effected on the next market day after the expiry of 5 market days from 31 October 2021.

b. The date of suspension of trading will be on 9 November 2021.

c. The Company will work with its external auditor to expedite the finalisation of audit of the AFS 2021 and to issue the Annual Report 2021 as soon as possible before the end of December 2021.

d. The expected date of issuance of the outstanding Annual Report 2021 is 31 December 2021.

This announcement is dated 26 October 2021.