Serba Dinamik told to comply with Bursa Malaysia directive
KUALA LUMPUR (June 29): Serba Dinamik Holdings Bhd (SDHB) said it has been informed by Bursa Malaysia that a failure to comply with the bourse’s directive to undertake a special independent review would be a breach of the stock market’s listing requirements.
The company said the stock exchange regulator warned it may take appropriate action against Serba Dinamik or its directors, if it failed to comply with the directive.
In a filing with the stock exchange today, the company said it is required to appoint an international accounting firm or an accounting firm with an international affiliation that has adequate resources to undertake the special independent review by July 2, to address concerns raised by KPMG PLT in its presentation to the board on May 3, 2021.
Serba Dinamik said it also has to ensure that the accounting firm appointed, or its affiliates, “has a presence in Bahrain and such other overseas locations, where the customers and suppliers which were highlighted by KPMG, in their presentation to the company on May 3, 2021, are located”.
The stock exchange also told Serba Dinamik “to ensure the scope of the special independent review is as per agreed between the audit committee of SDHB and Ernst & Young Consulting Sdn Bhd (E&Y), where the scope was also shared with Bursa Securities on June 15, 2021”.
Bursa Malaysia reserves the right to enlarge and extend the scope of work of the special independent review, according to the stock exchange filing.
Lastly, Serba is also required to report directly to Bursa and the Securities Commission Malaysia periodically on the progress of the special independent review and on the findings upon completion of the review.
Prior to the directive issued by Bursa Malaysia, Serba Dinamik had made an announcement where it confirmed that EY had agreed to act as the independent reviewer subject to conditions, which primarily involves KPMG cooperating with EY to facilitate an effective independent review.
Yesterday (Monday, June 28), Serba Dinamik said in a stock exchange filing that EY had accepted the appointment as its independent reviewer to assess the veracity and accuracy of the matters highlighted by the company’s former external auditor KPMG PLT.
It also agreed to the requirements of EY, which is to ensure that the engagement could be performed in an independent and objective manner for the benefit of all stakeholders.
At the close of Bursa trading today, Serba Dinamik shares fell half sen to 32 sen, with 834.88 million shares transacted.