Serba Dinamik plunges to new low of 6.5 sen in active trade

Serba Dinamik plunges to new low of 6.5 sen in active trade
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KUALA LUMPUR (May 10): Selling pressure on Serba Dinamik Holdings Bhd continued on Tuesday (May 10), with its share price tumbling as much as 4.5 sen or 40.91% to 6.5 sen.

At 10.03am Tuesday, the counter was trading at seven sen, still down four sen or 36.36%.

The counter, which remained the most actively traded stock, saw 238.59 million shares traded.

The stock closed 24 sen or 68.6% lower at 11 sen after it resumed trading on Monday.

The counter, which had been suspended since October last year due to an audit issue, was last traded at 35 sen.

It fell from a peak of RM1.61 in May last year after it was embroiled in an audit saga which later involved a legal tussle with its former auditor KPMG and the regulators.

Its warrant also remains in the red on Tuesday, falling as much as one sen or 33.33% to two sen.

It saw 24.75 million units changing hands, making it the third most actively traded counter.

On Monday, Affin Hwang Investment Bank and Kenanga Investment Bank Bhd had demanded cash upfront for purchase of beleaguered Serba Dinamik securities, given the uncertainties ahead of the company's prospects.

Last month, Serba Dinamik said in a bourse filing that it is looking into formulating a plan to regularise its financial condition and the company has approximately nine months to submit its regularisation plan to the relevant authorities for approval.

The company slipped into Practice Note 17 (PN17) status in January, after its external auditor Nexia SSY PLT expressed a disclaimer of opinion over its audited financial statements for the 18-month financial period ended June 30, 2021.

On April 13, the Securities Commission Malaysia (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 its 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 court.

The issue with the FY20 revenue was first raised by KPMG to Serba Dinamik's board in May last year. 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.

The company appointed Ernst & Young Consulting Sdn Bhd (EY Consulting) to conduct a special independent review on KPMG's claims.

However, Serba Dinamik then filed a lawsuit against KPMG, who refused to sign off on the company's FY20 accounts, which resulted in KPMG resigning as its external auditor. Serba Dinamik's independent directors also resigned in protest of the suit.

Subsequently, Serba Dinamik sued stock exchange Bursa, whom it claimed had overstepped its authority in the audit issue as the bourse compelled it to release EY Consulting's findings, as well as applied for an injunction to try to stop EY Consulting from revealing its findings, which the court rejected.

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Surin Murugiah