Friday 29 Mar 2024
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KUALA LUMPUR (July 5): Serba Dinamik Holdings Bhd’s share price rose as much as three sen or 7.79% to 41.5 sen in Bursa Malaysia morning trade today after the engineering solution provider announced last Friday (July 2) it had formally appointed Ernst & Young Consulting Sdn Bhd (EY) as the special independent reviewer to assist Serba Dinamik in undertaking the special independent review of the company’s financials in a widely-watched corporate dispute involving the company’s statutory audit matters.

Last Friday, Serba Dinamik said the appointment of EY as the special independent reviewer aims to assess the accuracy of matters highlighted by Serba Dinamik's former external auditor KPMG PLT.

At 10.13am today, Seba Dinamik’s share price had pared gains at 41 sen, with 196.82 million shares traded.

The counter was the most-actively traded stock across Bursa so far. At 41 sen, it had a market value of about RM1.52 billion based on the company’s 3.71 billion issued shares.

Prior to this, Serba Dinamik’s share price closed up for three consecutive days last Wednesday, Thursday and Friday after the stock finished at a record low of 32 sen on Tuesday.

The company’s share price has fallen to current levels from its closing price of RM1.61 on May 25, 2021.

Serba Dinamik has been in the news since the end of May, when the company announced that KPMG had informed the firm of some matters pertaining to its statutory audit.

According to Serba Dinamik’s Bursa filing on May 25, the company was in the midst of appointing an independent firm to commence a special independent review to assess the accuracy of the matters.

On May 28, Serba Dinamik said in a response to Bursa’s query that the matters highlighted by KPMG on May 3 relate to, among others, certain customers’ confirmation relating to sales transactions and trade receivables.

The matters highlighted by KPMG include "trade receivables balances and sales transactions for information technology contracts”, the company added.

Last Friday, Serba Dinamik said in a Bursa filing that the decision to formalise EY’s appointment as the special independent reviewer followed Serba Dinamik and Bursa’s discussions, during which EY were deemed "fit for the engagement” due to EY’s reputation as one of the big four auditing firms.

"The appointment of EY is also made under the directive from Bursa pursuant to Paragraphs 2.23 and 2.24 of the Main Market Listing Requirements of Bursa,” Serba Dinamik said.

Edited ByChong Jin Hun
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