KUALA LUMPUR (May 13): Serba Dinamik Holdings Bhd rose as much as one sen or 11.76% to 9.5 sen on Friday (May 13) after the company and its four top executives, who were involved in a quagmire in the submission of false information, paid a total of RM16 million in compounds issued by the Securities Commission Malaysia (SC).
However, the counter failed to sustain its gains. At 10.18am, it had erased the gains and traded unchanged at 8.5 sen.
The counter remained as the most actively traded stock, with 51.02 million shares traded.
The stock, which resumed trading on Monday, fell to a low of six sen on Wednesday from 35 sen.
The counter has fallen to current levels from its closing price of RM1.61 on May 25, 2021, when the audit issue was first raised by the company's former auditor KPMG.
Serba Dinamik in a statement on Thursday confirmed that the company and its top executives had completed the full settlement of their compounds, which were imposed by the SC, on May 9, for the total amount of RM16 million.
Payment was made prior to the extended deadline of May 11, it said.
“The company would also like to emphasise that operations are continuing as usual, with a focus on managing its creditors and the PN17 (Practice Note 17) restructuring process,” it added.
On April 13, the SC compounded Serba Dinamik, its chief executive officer cum group managing director Datuk Dr Mohd Abdul Karim Abdullah and three other top executives RM3 million each for submitting a false statement involving a revenue of RM6.01 billion for the financial period ended Dec 31, 2020 (FY20).
The other three individuals were executive director Datuk Syed Nazim Syed Faisal, group chief financial officer Azhan Azmi, and vice-president of accounts and finance Muhammad Hafiz Othman, who was also issued another compound of RM1 million.
This followed the decision of the public prosecutor to accept the representation made to the Attorney-General's Chambers by Serba Dinamik and the individuals involved regarding the charges pending in the court.
The issue with the FY20 revenue was first raised by KPMG to Serba Dinamik's board in May 2021. At the time, KPMG also flagged Serba Dinamik’s sales transactions, trade receivables and payables, material on-site balances as well as how it was unable to verify the counterparties involved.
Serba Dinamik executives given discharge and acquittal
Serba Dinamik and top execs pay RM16m compound offered by AGC
Serba Dinamik and executive officers’ representation conditionally accepted by AG's Chambers