KUALA LUMPUR (June 14): Serba Dinamik Holdings Bhd is entitled to a second opinion on its external auditor KPMG PLT’s findings, just like anyone else, opined the Minority Shareholders Watch Group (MSWG).
“There is a difference between opinion shopping and genuine seeking of a second opinion. It augurs well for the company that the second opinion that they are seeking is from a firm associated with a Big Four accounting firm,” MSWG chief executive officer (CEO) Devanesan Evanson said in a response to emailed queries from The Edge.
“There are now two sets of independent parties that are coming on board — three new independent directors and independent firm Ernst & Young Advisory Services Sdn Bhd (EY) as the independent reviewer,” he added, also noting that “it is always better corporate governance, structure-wise, to have more independent directors on board”.
He observed: “It seems that the three independent directors are brought on board to help address the issues arising from the audit.”
“They say there are more than one way to skin a cat, but what is important is that one adopts the fastest way. Minority shareholders have suffered due to the falling share price due to uncertainty arising from the unresolved audit issues — time is of the essence,” Devanesan added.
He also noted: “The board in its wisdom has decided that appointing three new independent directors and an independent advisory firm is the best and fastest way to resolve the issues. The board should know better the dynamics, competency and capacity of the current board — there is no need to second-guess the wisdom of the board in this instance.”
Serba Dinamik announced today that it had appointed EY as its independent reviewer for the audit matters highlighted by KPMG.
The group said that its board had agreed in principle to appoint EY, and that an updated announcement will be made upon the finalisation of the terms and conditions of the said appointment.
Serba Dinamik also announced that it had appointed Datuk Mohamed Ilyas Pakeer Mohamed, Masleena Zaid and Johan Mohamed Ishak to its board as independent and non-executive directors.
Serba Dinamik previously announced that it intends to conduct an independent review of the audit issues raised by KMPG. The company had revealed some details of the issues that the auditor cast doubt on, including sales transactions, receivables and payables to the tune of over RM3 billion.
Aside from the three new independent directors announced today, Serba Dinamik's independent directors include KPMG Malaysia's former partner Hasman Yusri Yusoff, Nationwide Express Holdings Bhd's former managing director Rozilawati Basir, as well as accountant Sharifah Irina Syed Ahmad Razi and lawyer Tengku Datuk Seri Hasmuddin Tengku Othman.
Serba Dinamik ended 23.14% or 14 sen higher at 74.5 sen today, and was the most actively traded counter on Bursa Malaysia, with 1.23 billion shares traded.
Time for Serba Dinamik independent directors to speak up
Serba Dinamik falls to new low of 54 sen amid heavy selling in morning trade
Serba Dinamik appoints EY as independent reviewer on audit matters, sees entry of three independent, non-executive directors
Serba Dinamik reverses course, rises by as much as 24.8% in afternoon trade