Serba Dinamik Annual Report 2021

Registration No: 201501042584 (1167905-P) Serba Dinamik Holdings Berhad (Incorporated in Malaysia) 26 Notes to the Financial Statements for the period ended 30 June 2021 1. Corporate information The Company is a public limited company, incorporated and domiciled in Malaysia and is listed on the Main Market of Bursa Malaysia Securities Berhad. The registered office and principal place of business of the Company is located at Level 15, Menara Serba Dinamik, Presint 3.4, Persiaran Perbandaran, Seksyen 14, 40000 Shah Alam, Selangor, Malaysia. The consolidated financial statements of the Company as at and for the financial period ended 30 June 2021 comprise the financial statements of the Company and its subsidiaries (together referred to as the “Group” and individually referred to as “Group entities”) and the Group’s interest in associates. The financial statements of the Company as at and for the period ended 30 June 2021 do not include other entities. The Company is primarily engaged in investment holding and provision of management services. The principal activities of the subsidiaries are stated in Note 8 to the financial statements. The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the Directors on 22 December 2021. 2. Basis of preparation of the financial statements The financial statements of the Group and of the Company have been prepared in accordance with Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards (“IFRS”) and the requirements of the Companies Act 2016 in Malaysia. The financial statements of the Group and of the Company have been prepared under the historical cost convention, unless otherwise indicated in the summary of significant accounting policies (Note 3). The preparation of financial statements in conformity with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia requires the Directors to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. As at end of financial period, the Group incurred net loss of RM185,373,102 and negative cash flow generated from operating activities of RM238,217,277. The subsequent events disclosed in Note 40 indicate that material uncertainty exists that may cast significant doubt on the ability of the Group to continue as a going concern and therefore, the Group may be unable to realise their assets and discharge their liabilities in the normal course of business.