KUALA LUMPUR: The Minority Shareholders Watch Group (MSWG) has urged minority shareholders of Serba Dinamik Holdings Bhd to vote against resolutions to replace KPMG as external auditors ahead of the company’s annual general meeting (AGM).
“As part of good governance, KPMG should be allowed to complete their work and report to Serba Dinamik’s shareholders at the forthcoming AGM,” MSWG said in a statement posted today on its website.
The watchdog reminded minority shareholders that the external auditors were appointed to provide an independent opinion on whether a company’s financial statements present a true and fair view.
“The external auditors’ opinion on a company’s financial statements will be presented in the annual report along with the audited financial statements. In addition, the external auditors will be present at the AGM to address shareholders queries in relation to their opinion,” it said.
On Friday. Datuk Abdul Kadier Sahib has issued a special notice calling for an extraordinary general meeting (EGM) to be held for shareholders to vote on a resolution to remove KPMG PLT.
He has also proposed to appoint BDO PLT as new auditors of the company for the financial year ending June 30, 2021.
Abdul Kadier is Serba Dinamik’s director and second largest shareholder with a 15.96% stake in the company.
The move came two days after Serba Dinamik on Wednesday told Bursa Malaysia that KPMG has raised concerns over “some matters pertaining to statutory audit.” It added that an independent firm will be appointed to carry out a “special independent review” to assess the veracity and accuracy of the matters raised by KPMG.
“Since the Company is setting up a special independent review by appointing an independent firm to assess the veracity and accuracy of the matters brought up by the external auditors, the external auditor should be around to defend their findings and explain themselves,” MSWG said.
“There is no urgency to remove the auditor at this juncture,” it added.
Shares in Serba Dinamik were suspended since Thursday, as the company struggled to contain the fallout from the accounting mess.
On Friday, Serba Dinamik told Bursa Malaysia that KPMG on May 3 has raised issues related to 11 sales transactions worth RM2.32bil, trade receivables balance of RM652mil and material on site balances of RM569mil.
The auditors also flagged concerns over transactions worth RM481mil involving six local suppliers. KPMG also raised questions about the companies customers and suppliers in Bahrain involving sales of US$101mil (RM417mil) and trade receivables amounting to US$24mil (RM99mil).
Serba Dinamik claimed that it has responded to all queries raised by KPMG on May 6.
“The company takes the view that there is no issue with regards to the legitimacy and existence of the contracts as well as the value that will render any material impact to the financial and operational aspects of the Group for the financial year ending June 30, 2021,” the company said on Friday.