KUALA LUMPUR (May 26): Serba Dinamik Holdings Bhd today assured its shareholders that the management has taken prompt actions to address the audit matters raised by its external auditor KPMG PLT prior to its announcement on Tuesday about the issue.
The issue pertains to its annual statutory audit for the financial year ended Dec 31, the integrated engineering services provider said in a statement today, but did not detail what they are.
“The group’s management has taken prompt action to address the matters much earlier prior to the announcement made to Bursa Malaysia on May 25. As far as we are concerned, we have not changed our business structure materially since the initial public offering in 2017 and have worked with KPMG, whose auditors are familiar with our operations, since 2013.
"As far as the management is aware, we have been conducting our business professionally," said its group managing director-cum-chief executive director Datuk Dr Mohd Abdul Karim Abdullah, who is also the largest shareholder in Serba Dinamik, with a 26.93% stake as at March 19.
The group has also engaged potential international independent firms — and are now finalising the terms of appointment — to assess the veracity and accuracy of the matters brought up by KPMG after consulting with Bursa Securities, he said, adding time is now of essence given that the group needs to prepare its annual report for publication by Oct 31, 2021, following its change of financial year end to June 30.
"The audit for FYE2020 has had its share of challenges given the impact of the Covid-19 pandemic in the markets where the group has a presence in more than 20 countries. This has certainly presented challenges to finalise the financial statement," Mohd Abdul said.
"We will accord the to-be-appointed independent firm the time and space to verify the matters with accuracy and veracity. We will be updating promptly any material developments in a transparent manner," he added.
He also said the group understands the concerns of its stakeholders and shareholders and asked for their understanding and patience on the matters raised. "Please be assured that the board and management remain committed to safeguarding your interests. In the meantime, day-to-day operations will continue and we appreciate the support of stakeholders and shareholders in resolving this matter," he added.
Earlier today, KPower Bhd, in which Mohd Abdul Karim holds a 32.14% stake, distanced itself from Serba Dinamik following the latter's announcement of the audit statutory matters raised by KPMG. KPower said the two companies are distinct and separate entities that are run independently of each other, save for having the same major shareholder and director in Mohd Abdul Karim.
KPower also said it has had no recurrent related party transactions with Serba Dinamik, and that all projects it sourced were done without Serba Dinamik's involvement.