Bursa rejects Serba Dinamik's second request for extension to issue FY20 annual report

Bursa rejects Serba Dinamik's second request for extension to issue FY20 annual report
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KUALA LUMPUR (Nov 25): Bursa Malaysia has rejected Serba Dinamik Holdings Bhd's second request for an extension of time to issue its annual report for the financial year ended June 30, 2021.

In a bourse filing, the oil and gas (O&G) outfit said it had requested from Bursa on Nov 23 another extension up to Dec 31, as the audited financial statements could not be finalised in time for inclusion in the report, owing to the change of external auditor and impact of movement restrictions in Malaysia and abroad due to Covid-19.

"In 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.

"As a result of the dilemma circumstances, the company has decided to uphold the compliances with the approved auditing and accounting standards by allowing the auditor to perform their duties without interference and time constraints," it said.

However, the stock exchange operator rejected its request the following day.

Serba Dinamik said it will be submitting an appeal to Bursa in relation to the rejected application for the release of its annual report and will provide further updates in due course.

On Oct 25, Bursa had granted an extension of up to Nov 30 for Serba Dinamik to release its outstanding annual report.

It should be noted that the company had changed its financial year end to June 30, 2021 from Dec 31, 2020.

Serba Dinamik has been at loggerheads with the stock exchange operator since October as the company declined to disclose the update of the findings of special independent review (SIR) conducted by Ernst & Young Consulting Sdn Bhd (EY Consulting). Bursa has suspended trading of Serba Dinamik's securities since Oct 22 for failing to furnish details of the updates on the SIR.

The company was ordered to conduct the SIR on its financial accounts for the period ended Dec 31, 2020 (FPE20) after its external auditor KPMG red-flagged audit issues.

Meanwhile, the company has taken legal action against Bursa, KPMG as well as EY Consulting. On the other hand, Bursa is seeking a court order to compel Serba Dinamik to reveal the update on the factual findings of the independent review.

Serba Dinamik shares have been suspended since Oct 22 and were last traded at 35 sen, giving the O&G service provider a market capitalisation of RM1.3 billion.

Read also:
Serba Dinamik deadline to submit FY20 annual report postponed to Nov 30

Lam Jian Wyn