PETALING JAYA: Sarawak Consolidated Industries Bhd (SCIB) said it has taken steps to strengthen internal controls and audit processes after the company and two former directors were reprimanded by Bursa Securities last week over the late submission of its 2021 annual report.
The Sarawak-based industrialised building systems specialist said in a statement today it was committed to timely and transparent financial disclosures.
SCIB said the episode highlighted areas for improvement in its financial reporting processes and it has since taken measures to ensure such delays do not recur. The improvements included the timely publication of its 2023 annual report on Oct 31, 2023, it added.
In its statement, the group acknowledged the late submission of its 2021 annual report was primarily due to “complexities in auditing overseas construction contracts”. The issue was further complicated by the untimely resignation of its external auditors KPMG PLT, it added.
Last Friday, Bursa Securities reprimanded SCIB, Abdul Karim Abdullah and Rosland Othman, for failing to submit the group’s 2021 annual report within the approved timeframe.
The regulator also fined Karim, the group’s then non-executive chairman, and Rosland, its then managing director cum CEO RM27,000 each. Karim, 57, resigned as chairman in October 2022 and retired from the board in December last year, while Rosland, 50, left the board earlier this year.
SCIB said the departure of the two directors had paved the way for the appointment of new board members who bring with them a “reinforced focus on governance, compliance and operational integrity”.
A learning opportunity
SCIB group managing director Ku Chong Hong said the recent challenges had been a “learning opportunity” for them, leading to stronger internal controls and audit processes.
“Our new board members have been instrumental in this turnaround, ensuring that SCIB not only adheres to, but exceeds the standards expected by our regulators and stakeholders,” he said in the statement.
SCIB posted a net profit of RM926,000 for the first quarter ended Sept 30, 2023 (Q1 FY2024) from a net loss of RM871,000 a year ago. Quarterly revenue rose 29.91% to RM39.4 million from RM30.33 million last year.
The earnings were driven by its manufacturing segment, which saw a higher profit margin and higher sales volume of its foundation piles for roads upgrading, extension of factories and school projects in Sarawak.
Its shares closed one sen or 1.3% higher at 78 sen, valuing the group at RM499.39 million.