Four Serba Dinamik Directors Quit After Firm’s Suit Against KPMG

(Bloomberg) -- Four independent non-executive directors of Serba Dinamik Holdings Bhd. have resigned, citing differences of opinion over the Malaysian oil and gas services company’s decision to take legal action against its former external auditor, KPMG.

The directors who quit are Hasman Yusri Yusoff, Tengku Hasmuddin Tengku Othman, Sharifah Irina Syed Ahmad Radzi and Rozilawati Basir, the company said in an exchange filing Friday evening.

The resignations coma after KPMG raised concerns over the company’s statutory audit last month. Serba Dinamik shares crash 64% in June to a record, erasing 2.7 billion ringgit ($650 million) of market value.

Serba Dinamik on Wednesday said it had filed a civil suit for substantial damages against KPMG on the grounds of alleged professional negligence, breach of contract and breach of statutory duty. KPMG resigned as the firm’s auditor the next day, citing the legal action.

In a separate filing late Friday, the company said it posted profit of 113.32 million ringgit for the quarter ended March, helped by a strong performance at its operations and maintenance business, and in its engineering, procurement, construction and commissioning divisions. Revenue was 1.38 billion ringgit.

The company didn’t provide comparative numbers because of a change last month in its fiscal year to June 30 from Dec. 31.

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