Annual Report
2015
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DAYANG ENTERPRISE HOLDINGS BHD
(712243-U)
57
Independent
Auditors’ Report
Report on the Financial Statements
We have audited the financial statements of Dayang Enterprise Holdings Bhd., which comprise the statements
of financial position as at 31 December 2015 of the Group and of the Company, and the statements of profit or
loss and other comprehensive income, changes in equity and cash flows of the Group and of the Company for
the year then ended, and a summary of significant accounting policies and other explanatory information, as
set out on pages 59 to 143.
Directors’ Responsibility for the Financial Statements
The Directors of the Company are responsible for the preparation of financial statements so as to give a true
and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting
Standards and the requirements of the Companies Act, 1965 in Malaysia. The Directors are also responsible for
such internal control as they determine is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on our judgement, including the assessment of risks of
material misstatement of the financial statements, whether due to fraud or error. Inmaking those risk assessments,
we consider internal control relevant to the entity’s preparation of financial statements that give a true and fair
view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by the
directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of the Group and of the
Company as of 31 December 2015 and of their financial performance and cash flows for the year then ended
in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and
the requirements of the Companies Act, 1965 in Malaysia.
Emphasis of matter
Without qualifying our opinion, we draw attention to Note 40 (a) in the financial statements which disclosed the
subsidiary of the Group, which was acquired during the year, had entered into two separate memorandum of
agreement (“MOA”) with a third party (“Seller”) in June 2014 to purchase two units of work barges amounting
to USD42 million each. Pursuant to the terms of the MOA, the said subsidiary of the Group had paid 20% of the
purchase price of each work barge amounting to USD16.8 million as upfront deposits. On 28 March 2016, the
subsidiary formally informed the Seller that it has terminated one of the MOA for one the work barge that was
due for delivery on 28 February 2016. Pursuant to the terms of the MOA, the Seller has a right of forfeiture of the
upfront deposit paid, and accordingly, the Group has written off the deposit of USD8.4 million, equivalent to
RM36.1 million (see Note 3) in the financial statements. The Group received a notification dated 5 April 2016 from
the Seller viewing the termination of the contract by the Group as wrongful and to forfeit the deposits paid, in
addition to reserving all its rights under the MOA. As at the date these financial statements were authorised for
issue, the Group has not become aware of any formal legal proceedings by the Seller.
