KUALA LUMPUR: Serba Dinamik Holdings Bhd has no intention to delay the release of its special independent review's actual findings update as per the impression painted by Bursa Malaysia last Friday (Oct 22).

Serba Dinamik said what really transpired was that three of its independent non-executive directors had attended the presentation by the special independent reviewer Ernst & Young Consulting Sdn Bhd (EY) on Oct 21 in the presence of representatives from Bursa.

However, with the briefing being "a preliminary finding which was inconclusive", the directors said EY had not reached any conclusion, hence certainly not for them or anyone else to second guess them.

"At the moment, everything is very much work-in-progress and in piece-meal basis, hence it's very inappropriate to release the findings which otherwise would further cloud the achievement of our target rather than to resolve the problem at hand," they said today. 

"As this was only a preliminary findings, there was no copies of handouts or materials being circulated during the presentation ... moreover, it was meant to be that way.

"The task of the SIR is to arrive at a conclusion as to what should be on the financial statements and what value could fairly be stated on the financial statements. On Oct 21, EY did not suggest that they were in a position do so."

The trio were shedding more light into Serba Dinamik's response to Bursa yesterday that there were no documents or copy of any documents that fit the description of "Factual Findings Update as at Sept 30, 2021" given to the independent directors as of Oct 22

In its statement on Oct 22, Bursa claimed that findings from the special review as of Sept 30 had been communicated to three out of four of Serba Dinamik's independent non-executive directors on Oct 21.

This led to the market regulator issuing a directive to Serba Dinamik to, among others, make an announcement on the findings from the factual findings update by today (Oct 26).

Bursa also ruled that Serba Dinamik's stock trading suspension from Friday's afternoon session would remain indefinitely until the company revealed the findings from the factual findings update.

In its letter to Bursa yesterday, Serba Dinamik further justified that its terms of engagement with EY dated July 2:

* Has provided that no work products will be distributed to any parties including the regulators before and/or after the status update; and prohibits any quoting or references to any report, any portion, summary or abstract thereof;  and

* any documents or report from EY does not fall within paragraph 9.03 and 9.35A of the Main Market Listing Requirements.

In essence, Serba Dinamik contended that "EY is still in the midst of performing the special independent review".

Very broadly, Serba Dinamik's stance in its letter to Bursa yesterday suggested that there appeared to be a significant gap as to what the latter had understood and what the directors had comprehended with regard to the event of Oct 21.

In a related development, Serba Dinamik noted that Bursa had via its letter dated Oct 25 approved its application for a one-month extension from Oct 31 to Nov 30 to issue its Annual Report 2020.

The report comprises its annual audited financial statements together with the auditors' and directors' report for the financial period ended June 30, 2021.

Serba Dinamik was last traded at 35 sen at the close of Friday's midday trading prior to the trading suspension of its shares and warrants. This gave the company a market capitalisation of RM1.31 billion.

https://www.nst.com.my/business/2021/10/739774/premature-release-serba-dinamiks-special-independent-review