Serba Dinamik Annual Report 2021

151 Independent Auditors’ Report to the Members of Serba Dinamik Holdings Berhad (continued) Registration No: 201501042584 (1167905-P) (Incorporated in Malaysia) Basis for Disclaimer of Opinion (continued) The Group and the Company have triggered events of default for various contracts and obligations in respect of these contracts (Note 40.2). These events or conditions indicate existence of material uncertainties that may cast significant doubt on the Group’s and the Company’s ability to continue as a going concern. Be that as it may, the financial statements of the Group and of the Company have been prepared on a going concern basis, the validity of which is highly dependent on the successful implementation of the Directors’ plans in responding to the conditions above (Note 2). Our scope of services in our letter of engagement makes reference to the availability of the EY Review report for the purpose of completing our audit. The EY Independent Review is ongoing and a situation has arisen where as a consequence of a directive of Bursa on 22 October 2021 to the Company to announce preliminary factual findings of EY by 26 October 2021, the Company had responded to the said directive on 3 November 2021 with the filing of an Originating Summons at the High Court of Malaya at Kuala Lumpur against Bursa (Note 40.1(b)). On 5 November 2021, the Company also filed an Originating Summons at the High Court of Malaya at Kuala Lumpur against EY pertaining to the said Independent Review (Note 40.1(c)). At the date of our report, the High court had fixed the next case management for legal suit against EY on 6 January 2022 and the hearing for legal suit against Bursa on 17 January 2022. The outcome of these legal suits extends beyond the timelines determined by Bursa to the Company for submission of the Annual Report. The aforementioned actions have constrained our completion of the audit. Under these onerous circumstances and potential interaction of the above uncertainties and their possible cumulative effects on the financial statements, we are unable to express an opinion. Independence and Other Ethical Responsibilities We are independent of the Group and of the Company in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code. Responsibilities of the Directors for the Financial Statements The Directors of the Company are responsible for the preparation of financial statements of the Group and of the Company that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia. The Directors are also responsible for such internal control as the Directors determine is necessary to enable the preparation of financial statements of the Group and of the Company that are free from material misstatement, whether due to fraud or error. In preparing the financial statements of the Group and of the Company, the Directors are responsible for assessing the Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group and the Company or to cease operations, or have no realistic alternative but to do so.