The share price of Serba Dinamik Holdings Bhd fell about 2% during the Bursa Malaysia trading session this morning after the company announced to take legal action against its external auditor, KPMG PLT following professional negligence, breach of contract and breach of statutory duty.
At 9.10am, the Serba Dinamik share price declined 1 sen or 1.6% to 61.5 sen.
At 61.5 sen, Serba Dinamik has a market value of around RM2.28 billion based on 3.71 billion shares issued by the company.
Around 10.05am, the third most actively traded stock on Bursa Malaysia saw about 56 million shares change hands.
The company's shares have traded between 60.5 sen and 64.5 sen so far.
Bernama reported that, due to the ‘current situation,’ bad speculation on Serba Dinamik had erupted in the market, among others, causing a significant decline in share prices and overall market capitalization.
In a statement yesterday, Serba Dinamik said that the situation resulted in his party and KPMG finding a dead end, causing certain issues to arise.
in the audit process.
"After a comprehensive assessment of the matter and seeking legal advice, we are of the opinion that Serba Dinamik has a good claim and can sue KPMG due to the actions or lack of action of those who refused to complete the audit," the company said.
According to Serba Dinamik, the findings raised by KPMG were ‘not substantive in nature requiring independent review’ and the issues faced by the auditors were ‘really due to their own negligence’.
Clearly Versatile, KPMG’s actions eventually found a dead end and as soon as this matter became known in the open market, it led to a sharp drop in share prices, market capitalization and general confidence.
According to the Chairman of Serba Dinamik, Datuk Mohamed Ilyas Pakeer Mohamed, to resolve any concerns with regulators and the market, Serba Dinamik will continue to investigate the issues raised by KPMG and announce its findings.
"The matter outlined by KPMG was raised in a special board meeting on May 3 where KPMG indicated that they were not ready to complete the audit unless an independent review by a third party was conducted on the alleged findings stated by KPMG," he explained.
Mohamed Ilyas added, KPMG has made this audit problem more serious.
"This causes shareholders to incur losses. We have suffered a market capitalization loss of around RM3 billion, it is not a small amount for an oil and gas company, ”he said.