KUALA LUMPUR, May 29 (Reuters) - Malaysian oil and gas
services firm Serba Dinamik Holdings Bhd said it did
not see any problems with more than 3.5 billion ringgit ($847
million) of contracts and transactions questioned by its
In a stock exchange filing on Friday, Serba Dinamik said
KPMG had not been able to verify contracts and transactions with
"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," it said.
Serba Dinamik said it planned to appoint an independent firm
to "review the accuracy and veracity" of the issues raised by
The issues highlighted by KPMG comprised sales transactions
of 2.3 billion ringgit, a trade receivables balance of 652
million ringgit and a materials on site balance of 569 million
ringgit, the company said.
Serba Dinamik said in another filing on Friday that a
non-independent non-executive director, who is also a
shareholder with 15.96% equity, had proposed convening an
extraordinary general meeting to remove KPMG as auditor, and
hire BDO in its place to audit the same period.
In a statement on Saturday, Serba Dinamik said it was unfair
of KPMG to have stopped the audit and request an independent
review without engaging further with management, as well as to
have only highlighted the issues close to the deadline for the
company to announce its accounts.
"We have provided sufficient information ... and full
cooperation to the auditors to satisfy their extended procedures
requirements. Somehow we were informed that they were unable to
obtain confirmation from some of our customers," Group Chief
Executive Officer Abdul Karim Abdullah said.
KPMG could not immediately be reached for comment.
Serba Dinamik shares have been suspended since it announced
on Tuesday its external auditors had flagged some matters
related to its statutory audit. The company did not give details
at that stage.
($1 = 4.1320 ringgit)
(Reporting by A. Ananthalakshmi and Liz Lee Editing by Mike
Harrison and Mark Potter)