Serba Dinamik’s dollar bonds saw a massive drop after its external auditor KPMG flagged some matters regarding a statutory audit. Even the company’s shares were suspended from trading today. The “board of directors was informed by the external auditors on some matters pertaining to statutory audit…The board is in the midst of appointing an independent firm to commence a special independent review to assess the veracity and accuracy of the matters,” it said. HLIB Research, which downgraded the stock said “We believe that the uncertainties pertaining to the independent review process will bring about jitters to the stock as Serba Dinamik was the only company above a market cap of more than RM5 billion to have received an independent audit request since the beginning of MCO (Movement Control Order)”. In another note TA Research said the audit matters pertained to the financials for FY 2020. The company plans to release its annual report by Oct 31, this year after recently changing its financial year end to June 30, from Dec 31.
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