Serba Dinamik plans to remove KPMG
The company will do so because the shareholder has the right to propose the share
by LYDIA NATHAN / Photo by TMR FILE PIX
SERBA Dinamik Holdings Bhd management will go ahead with a call from a major shareholder to remove its external auditor, KPMG PLT, which has halted its audit process and reported audit issues totaling RM3 billion.
Despite the reputational risks involved, Serba Dinamik management said on Saturday that the company would do so because the shareholder has the right to offer the stock and Serba Dinamik management believes it has had no say in it. say by KPMG.
“The company responded to emails and gave our full cooperation to KPMG after three days of issues raised on May 3, 2021, but we have yet to receive a response from them,” said Serba Dinamik’s group CEO. , Datuk Dr Mohd Abdul Karim Abdullah (Photo) said Saturday at a press conference.
So far, KPMG’s audit has raised concerns about Serba Dinamik’s sales transactions, trade receivables, debts and on-site physical balances worth approximately RM3 billion for the fiscal year. 2020.
The considerable value of the debt and the move proposal by Datuk Abdul Kadier Sahib, not independent of Serba Dinamik, non-ED, to propose an EGM with the aim of removing KPMG as auditor of the company to be replaced by BDO PLT has been contested by the Minority Shareholder Watchdog Group (MSWG) which advised minority shareholders to vote against the proposal.
In a statement released on Saturday, the MSWG said external auditors are appointed by shareholders to give an independent opinion on whether a company’s financial statements present a true and fair view.
“As part of good governance, KPMG should be allowed to complete its work and report to Serba Dinamik shareholders at the next AGM. Since the company sets up a special independent review by appointing an independent firm to assess the veracity and accuracy of the issues raised by the auditors, the external auditor should be there to defend his conclusions and explain himself, ”he said.
The MSWG reiterated that there is no urgency to remove the auditor at this stage, as each company’s financial statements are presented at their AGM and the external auditors are present to answer any questions that shareholders might have.
Abdul Kadier owns a 15.96% stake in Serba Dinamik, but a vote has been taken for the decision.
“This is not an attempt to silence KPMG, but to ensure that the main agenda for us to maintain daily operations is not disrupted. It must be done in time, ”Serba Dinamik officials said.
The company’s year-end has been extended until the end of June to complete the audit process, which is now also in question.
The auditor replacement process will require a simple majority vote of 50% + 1, and depending on the timeline, existing auditors will likely be replaced by the end of June.
According to his documents filed in Bursa Malaysia last Friday, Serba Dinamik said the KPMG had raised issues involving 11 parties, representing a total sales transaction of RM2.32 billion, a trade receivables balance of RM652 million. and an on-site materials balance of RM 569 million.
KPMG has expressed concerns regarding the financial strength of certain business parties.
Serba Dinamik’s actions, suspended since last week, will likely resume trading today. The shares last closed at RM1.61.