SO what’s next for Serba Dinamik Holdings Bhd after its external auditors KPMG PLT has stepped down with immediate effect after having served the former with a written notice yesterday (June 24)?
This is the ultimate question lingering in the minds of investors after the stock of the global integrated oil & gas (O&G) service provider hit a new low of 53 sen yesterday (June 24) before closing down 6 sen or 10.08% at 53.5 sen with a heavy volume of 371.67 million shares traded to value the company at RM1.99 bil.
Amid fluid market developments, Serba Dinamik has decided to pursue its legal suit against KPMG “to recover all monetary and reputational losses that the company and its investors have been made to endure”, according a source close to the company.
“At this juncture, the company wishes to assure investors that the board and management understood the plight and have their best interests in mind,” he told FocusM. “The next course pertaining to the legal suit and appointment of new auditors will be discussed during a board meeting today”.
Serba Dinamik had on June 22 announced that it is taking its impasse with KPMG with regard to the completion of the company’s statutory audit for FY2020 a step further by filing a civil claim for substantial damages inflicted on its share price and market capitalisation.
Among others, the claims will be made on the grounds of professional negligence, breach of contract and breach of statutory duty.
Meanwhile, KPMG has told The Edge that the suit had no legal basis and that it would firmly refute the allegations if the matter goes to court.
“The potential claim relates to a statutory audit that is still in progress and we are unable to make any comments. The audit is being conducted in accordance with the relevant professional standards,” argued the Big-Four audit firm.
“We see no basis for it and will vigorously contest any court proceedings.” – June 25, 2021
