KUALA LUMPUR (Dec 21): Bursa Malaysia Securities Bhd has reprimanded Serba Dinamik Holdings Bhd and 10 of its directors for breaches of Bursa Malaysia Securities Main Market Listing Requirements (Main LR).
In a statement on Thursday, Bursa Malaysia said that total fines ranging from RM355,200 to RM1.38 million were imposed on 10 directors of the troubled oil and gas services company.
The stock exchange operator also required Serba Dinamik to review and ensure the adequacy and effectiveness of its financial reporting function and carry out a limited review on the company’s quarterly report submission and comply with the training requirement imposed by Bursa Securities.
Serba Dinamik group managing director and chief executive officer Datuk Mohd Abdul Karim Abdullah is fined a total of RM1.38 million for numerous violations, including those pertaining to financial reporting.
“Bursa Malaysia Securities views the contraventions seriously as timely and accurate disclosure of financial statements and material information are fundamental obligations of listed companies and are of paramount importance in ensuring an orderly and fair market for securities traded on Bursa Malaysia Securities and maintaining market integrity and investor confidence.
“Further, it is mandatory for listed companies and its directors to comply with the directive issued by Bursa Malaysia Securities.
“All directors (be it executive or non-executive) of listed companies must also ensure compliance of the Main LR and maintain the highest standards of integrity, accountability, corporate governance and responsibility to its shareholders and the investing public,” it said.
Bursa Securities also reprimanded Serba Dinamik for several defaults in payment.
Serba Dinamik fell into Practice Note 17 status on Jan 6 last year, after its external auditor Nexia SSY PLT expressed a disclaimer of opinion on its audited financial statements for the 18-month financial period ended June 30, 2021.
On Nov 30, the group also said it was unable to release its financial report for its first quarter ended Sept 30, 2023 (1QFY2024) by the date as required under listing requirements.
It eventually released the quarterly results on Dec 8.
This is the fourth consecutive quarter that Serba Dinamik has delayed issuing its financial report within the prescribed time. The company has been in the red for the last nine quarters.
The group also failed to issue its annual report for FY2023 by the Oct 31 deadline, and has yet to issue the annual report to date. Its request to extend the deadline for this till Jan 15, 2024 was rejected by Bursa Malaysia.
For this reason, Serba Dinamik's shares have been suspended from trading on Bursa Malaysia until further notice. Its securities were first suspended on Jan 18, 2023.