KUALA LUMPUR, Malaysia (July 6): Serba Dinamik Holdings Bhd said it expects to appoint a new auditor by the end of the month, after its previous external auditor, KPMG PLT, resigned last month following a lawsuit filed by an oil & gas engineering firm against the latter. It claimed in a filing with the market that on June 27, it sent out a request for proposal for external audit services to multinational audit companies.
Serba Dinamik further stated that it had requested a meeting with the Malaysian Companies Commission for consultation on the appointment of an external auditor in accordance with Section 272 of the Companies Act 2016.
“By the end of July 2021, the board plans to hire new auditors. In addition, as soon as the new auditors’ appointment is finalized, the company will make an urgent announcement to that effect “said the collective.
KPMG resigned because the lawsuit had jeopardized its ability to independently complete the audit contract and fulfill its professional obligations.
Serba Dinamik is entangled in an auditing dispute with KPMG, which raised red flags to the company’s independent directors last month over inconsistencies involving transactions totaling RM4.54 billion. Serba Dinamik’s accounts for the financial period ending December 31, 2020 were used to raise the issues.
Datuk Abdul Kadier Sahib, the company’s second-largest shareholder, wanted to summon an extraordinary general meeting to fire KPMG and select BDO as the new external auditor.
Abdul Kadier, who is a non-independent non-executive director of Serba Dinamik and controls 16.25 percent of the company, retracted his request a week later.
Last Friday, the business hired Ernst & Young Consulting Sdn Bhd (previously Ernst & Young Advisory Services Sdn Bhd) to perform a specific independent review of the KPMG issues.
Following the appointment of the independent reviewer, Serba Dinamik’s stock rose from a record low of 32 sen. The stock rose 2.5 sen, or 5.15 percent, to 51 sen, giving it a RM1.9 billion market capitalization./n
