Serba Dinamik to decide on independent review scope on Friday

KUALA LUMPUR: Serba Dinamik Holdings Bhd said its board of directors was scheduled to meet on Friday to decide on the scope of work to be undertaken by the yet to be appointed independent reviewer.

"The Company will make an immediate announcement to this effect immediately upon the finalisation of the aforesaid scope of work," the oil and gas services firm said in a filing today.

Serba Dinamik on June 14 announced that it has agreed in principle to appoint Ernst & Young (EY) as an independent reviewer to assess the veracity and accuracy of the matters highlighted by its external auditors, KPMG PLT.

But an impending legal battle between Serba Dinamik and KPMG may have changed the scope of the proposed independent review.

Serba Dinamik, on Tuesday, filed a writ and statement of claim against auditor KPMG PLT on the grounds of professional negligence, breach of contract and breach of statutory duty.

"Accordingly, the Board shall be deliberating this Friday June 25 whether the scope of the independent reviewer has to be expanded or otherwise," Serba Dinamik said.

"Based on legal advice, the Company is of the view KPMG PLT can no longer act independently as external auditors," it added.

KPMG told Reuters on Tuesday that it will vigorously contest any court proceedings.

Serba Dinamik came into the spotlight late last month when KPMG sounded alarm bells on some of the company’s past sales transactions and trade receivables valued at around RM3.5bil.

The audit uncertainties has resulted in a huge sell-down on the stock.

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