KUALA LUMPUR (July 26): Serba Dinamik Holdings Bhd has nominated Nexia SSY PLTS as its new external auditor for the financial year ended June 30, 2021, following the departure of KPMG PLT a month ago.

In a statement, Serba Dinamik said the appointment will be subject to professional clearance from KPMG, in accordance with Section 320 By-Law of the Malaysian Institute of Accountants (MIA), following which further announcements will be made.

It said the nomination was made based on the criteria set by the board, in line with legislations such as the Companies Act 2016, Capital Markets and Services Act 2007 (Amendment 2012), Bursa Malaysia’s Listing Requirements, as well as the Malaysian Code on Corporate Governance (MCCG) and the By-Laws (on Professional Ethics, Conduct and practice) by the MIA.

“The board of directors, including the audit and risk committee of Serba Dinamik, is committed to ensuring that the nomination is based on the objectivity and independence, as well as sound performance of the external auditor,” said Serba Dinamik chairman Datuk Mohamed Ilyas.

Nexia SSY PLT is an independent member firm of Nexia International, currently ranked as the eighth largest accounting firm in the world by the International Accounting Bulletin Survey 2021, and operates in more than 128 countries.

On June 24, KPMG had announced its resignation as Serba Dinamik’s external auditor, amid the latter’s decision to take legal action against the audit firm over the ongoing statutory audit of the company for the financial period ended June 30, 2021.

KPMG said the lawsuit had compromised its ability to independently continue the audit engagement and discharge its professional duties.

Serba Dinamik fell one sen or 2.3% to close at 42 sen today, giving it a market capitalisation of RM1.57 billion.