Malaysian engineering solutions provider Serba Dinamik listed on the Bursa Malaysia in February 2018. Troubled first emerged in early May 2021 when the company announced that it was changing its financial year-end from December 2020 to June 2021 to give auditors more time to complete the audit. However, three weeks later, the company announced that KPMG had raised some issues regarding certain customer confirmations, transactions and suppliers. The announcement caused an immediate halving of the company's share price. Over the next six months, management engaged in a number of (ultimately futile) legal proceedings against auditors, investigators and the exchange to prevent the publication of the special investigation. When Serba Dinamik's June 2021 annual report was finally released in January 2022, it reported material impairments to receivables and inventory which had not been reported in the preliminary financials, suggesting that there had been improper dealings. The Securities Commission fined four individuals a total of MYR16m but in an unusual development the Attorney General did not press further charges, citing circumstantial evidence and public interest. The company defaulted in late 2021 and its banks filed a winding up petition in April 2022.
Last updated May 2022
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