KUALA LUMPUR (Dec 19): Trading in the securities of Serba Dinamik Holdings Bhd will be suspended from Dec 23 if the loss-making oil and gas services company fails to issue its annual report for the financial year ended June 30, 2022 (2022 Annual Report).

If the Practice Note 17 company is unable to submit the annual report on Dec 22, its shares will be suspended the following day until further notice.

Serba Dinamik’s share price fell 25% in active trade as at the time of writing on Monday (Dec 19). It was traded at 1.5 sen with a market value of RM55.91 million. Trading volume, meanwhile, swelled to 41.11 million from 1.76 million previously — making it the 11th most active stock across Bursa Malaysia.

On Nov 1, Bursa Malaysia Securities Bhd granted the financially troubled company an extension of time from Oct 31 until Dec 15, 2022 to issue its annual report that includes audited financial statements together with the auditors’ and directors’ reports.

However, it failed to issue the annual report to Bursa Securities for public release within the extended timeframe on Dec 15.

Under the listing rules, if a company fails to issue the outstanding financial statements within five market days after the allowed deadline, its shares will be suspended from the next market day.

“If a listed issuer fails to issue the outstanding financial statement within six months from the expiry of the relevant timeframes, de-listing procedures shall be commenced against such listed issuer,” read Serba Dinamik’s filing on Monday.

This is not the first time the company has faced a suspension of trading. Serba Dinamik's shares were suspended for six months starting from October last year, because the company had not complied with the directive of Bursa Malaysia. The issue arose when the then external auditor KPMG pointed out alleged questionable transactions worth more than RM4.54 billion in May 2021.

Serba Dinamik’s issues with auditors escalated to disputes with frontline regulator Bursa Malaysia and a feud with EY Consulting Sdn Bhd, which undertook a special independent review and was tasked to come up with a factual findings update on KPMG’s findings.

Serba Dinamik has been in the red since the first quarter ended Sept 30, 2021 (1QFY2022). For its latest 1QFY2023 results, the company registered a wider net loss of RM104.6 million against RM42.11 million in the same period last year, as quarterly revenue tumbled 73% to RM213.58 million from RM799.345 million.