KUALA LUMPUR (Jan 3): Serba Dinamik Holdings Bhd, which had missed the deadline to submit its annual report for the financial year ended June 30, 2021 (FY21), is now expecting to issue the report on Thursday (Jan 6).
"The annual report 2021 and the audited financial statements of the company remain outstanding as the company needs more time to update the statements or reports in the annual report and make arrangements for printing," the company said in a filing.
"The expected date of issuance of the annual report 2021 is Jan 6, 2022. The company will issue the annual report 2021 as soon as possible by the above-expected date of issuance," it added.
Bursa Securities had rejected Serba Dinamik's application and subsequent appeal to postpone the submission of its FY21 annual report from the initial deadline of Nov 30, 2021.
At the time, Serba Dinamik made the request "in view of the change of external auditor and the impact of restrictions in movement in Malaysia and overseas arising from the Covid-19 pandemic".
"In the light of the approved standards on accounting and auditing, the company is of the opinion that the auditor should be given adequate time to perform their statutory obligations without interference and time constraints to ensure audit works can be conducted effectively and sufficiently," it said in its filing then.
Back in May 2021, KPMG had raised several issues over Serba Dinamik's financials for the 12 months ended Dec 31, 2020 involving its counter parties, material on site, and receivables. The contention resulted in a suit by Serba against KPMG, which prompted KPMG's resignation.
In the 12 months ended Dec 31, 2020, Serba Dinamik’s net profit rose 26.8% year-on-year to RM631.75 million from RM496.64 million the year before. Revenue rose 32.8% to RM6.01 billion, from RM4.53 billion.
Serba changed its financial year end from Dec 31, 2020 to June 30, 2021, and said this was to allow more time for its then-auditor KPMG to complete the audit process.Serba subsequently appointed Nexia SSY PLT as its new external auditor in August 2021 with the clearance of KPMG in accordance with the Section 320 by-law of the Malaysian Institute of Accountants.
The group continued to post earnings growth in the first half of 2021. In the 18 months ended June 30, 2021, Serba Dinamik’s net profit came in at RM759.98 million, on revenue of RM8.61 billion. However in the quarter ended Sept 30, 2021, Serba Dinamik posted net loss of RM42.11 million on revenue of RM799.35 million — its maiden loss since listing in 2017.
Shares of Serba Dinamik have been suspended from trading since Oct 22, after it ignored Bursa Securities' directive to disclose the factual finding updates by Ernst & Young Consulting Sdn Bhd, who was appointed to do a special independent review of KPMG's findings.
The group's shares last settled at 35 sen, giving it a market capitalisation of RM1.3 billion.