Serba will release its special independent review findings once finalised

SERBA Dinamik Holdings Bhd has reiterated that it will make an immediate announcement on the outcome of its special independent review (SIR) upon completion of the findings by its special independent reviewer Ernst & Young Consulting Sdn Bhd (EY).

In a Bursa Malaysia filing dated Sept 6, the global integrated oil & gas (O&G) service provider said EY has been furnishing its independent non-executive directors with progress updates on a bi-weekly basis.

On Sept 2, the company’s audit and risk committee chairman Johan Mohamed Ishak told FocusM that the timeline and submission of the SIR pertaining to certain accounting matters flagged by its former external auditor KPMG PLT rests solely with EY.

Above all else, the matter is under the prerogative of EY who will be directly reporting its findings to Bursa Malaysia.

“On its part, Serba Dinamik has given a full cooperation to EY with regard to the SIR,” he pointed out. “Our estimation is that the SIR will most likely be made public in 4Q 2021”.

Johan was responding to an opinion expressed by the Minority Shareholders Watch Group (MSWG) CEO Devanesan Evanson that it has been close to two months now yet the global integrated oil & gas (O&G) service provider has not announced an indicative date as to when the SIR report will be made available.

“The SIR is not an external audit of the financial statements and its scope is limited to the matters highlighted by KPMG,” Devanesan pointed out in a recent weekly newsletter. “Surely, between the company and EY – by now – they should be able to iron out an indicative date for the release of the SIR report and the findings thereof.”

Devanesan added Serba Dinamik should provide an indicative date as to when the SIR report can be made available to provide some comfort to minority shareholders.

Johan also dismissed allegations that Serba Dinamik is purportedly trying to delay the release of the SIR findings.

“We are equally as desperate to await the outcome of the SIR report as we are looking forward to close a black chapter in the company’s corporate history. But this is not without logistical complications due to meeting requirements of the movement control order (MCO) policies by the Securities Commission (SC) and EY,” he justified.

“Nobody has gained anything from what has transpired since mid-May; Serba Dinamik has seen 75% of its market capitalisation wiped out from RM6 bil to RM1.55 bil today”.

Unless the SIR is released soonest, Devanesan has also raised concerns that the external audit deadline of Oct 31 for Serba Dinamik’s accounts for financial year ended June 30, 2021 could be extended which would add further uncertainty to minority shareholders.

Serba Dinamik was unchanged at 40 sen with 3.91 million shares traded, thus valuing the company at RM1.49 bil. – Sept 9, 2021

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