KUALA LUMPUR (Nov 3): Bursa Securities has denied financially distressed oil and gas company Serba Dinamik Holdings Bhd's request for an extension to release its annual report for the financial year ended June 30, 2023 (FY2023).

"After deliberation, Bursa Securities had on Nov 1, 2023, sent a letter to the company, informing that the company’s request for an extension of time has been rejected," Serba Dinamik said in a filing with Bursa Malaysia on Friday.

The company added that it will make an appeal to Bursa Securities against the rejection.

On Oct 17, Serba Dinamik had submitted its request for another three-month extension until Jan 15, 2024 to submit its FY2023 annual report, citing to "accommodate the current extensive audit requirements given the current financial and workforce limitation" as the reason. The initial deadline to submit the annual report was Oct 31 this year.

Serba Dinamik said the delay in the issuance of its Annual Report FY2023 is due to delay in the commencement of the statutory audit as a result of manpower shortages across the various administrative departments of the company caused by workforce attrition and financial constraints.

Serba Dinamik is required to issue its annual report that includes annual audited financial statements together with the auditors’ and directors’ reports, to Bursa Securities and shareholders within four months from the close of its financial year.

According to its filing with Bursa Malaysia on Sept 8, Serba Dinamik's unaudited financial statements showed that its net loss widened to RM1.3 billion in FY2023, from RM1.09 billion in the previous year. Revenue shrank 70% to RM403.23 million in FY2023 from RM1.35 billion in FY2022, due to a decline in its engineering, procurement, construction and commissioning, and information and communication technology activities.

The company slipped into Practice Note 17 status in January 2022, after its external auditor Nexia SSY PLT expressed a disclaimer of opinion over its audited financial statements for the 18-month financial period ended June 30, 2021.

Trading in Serba Dinamik securities has been suspended since January this year in respect of a winding-up order by six financial institutions against the company. It was last traded at two sen per share.