Selling persists as Serba Dinamik sues KPMG for alleged negligence

Wednesday 24 Apr 2024

KUALA LUMPUR (June 23): Serba Dinamik Holdings Bhd's share price fell about 2% in Bursa Malaysia morning trade today after the engineering solutions provider announced yesterday legal action against its external auditor KPMG PLT for alleged negligence in the course of the audit process for the company.

At 9.10am today, Serba Dinamik’s share price had fallen one sen or 1.6% to 61.5 sen.

At 61.5 sen, Serba Dinamik had a market value of about 2.28 bllion based on the company’s 3.71 billion issued shares.

Later at 10.05am, the third most-actively traded stock on Bursa had seen some 56 million shares traded.

The company's shares were traded between 60.5 sen and 64.5 sen so far today.

Serba Dinamik said in a statement to Bursa that that company yesterday filed in the Shah Alam High Court the writ of summons and statement of claim against KPMG.

Serba Dinamik said the circumstances leading to the filing of the writ of summons and statement of claim were based on the company’s contention that KPMG had failed and neglected its role to complete the audit report until and unless a third-party independent reviewer is appointed and complete the findings raised by the external auditor.

"Serba Dinamik contends that the findings raised by KPMG were not substantive in nature, which warranted an independent review and that the issues faced by KPMG were entirely attributable to their own negligence in the course of the audit process.

"At this juncture, Serba Dinamik is of the view that KPMG’s act of halting the audit process pending a third-party independent review was in the circumstances negligent as it would have delayed the preparation of the audit report and would under normal circumstances create unnecessary speculation in the market. For the avoidance of doubt, the findings raised by KPMG were announced on May 28, 2021,” Serba Dinamik said.

Edited ByChong Jin Hun

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