EY Consulting to Serba Dinamik: “We undertook our duties professionally”
KUALA LUMPUR: Ernst & Young Consulting Sdn Bhd (EY Consulting) said it disagrees with the position taken by Serba Dinamik Holdings Bhd (Serba Dinamik) against them and emphasised that it undertook its duties professionally and stand by all its actions to date.
In response to legal action taken against them by Serba Dinamik, the audit firm said it was appointed by the Serba Dinamik’s board of directors to undertake a special independent review under the directive of Bursa Malaysia.
In a filing with the exchange on Wednesday, Serba Dinamik said it has filed the originating summons (OS) against the audit firm on November 5, seeking reliefs including a declaration that EY Consulting is not an “auditor” within the definition of the Main Market Listing Requirements (MMLR) as well as a declaration that EY Consulting had misrepresented to Serba Dinamik that they could be appointed pursuant to paragraph 2.23 and 2.24 of the MMLR.
It is also seeking a declaration that the appointment of EY Consulting and the letter of engagement executed between EY Consulting and Serba Dinamik dated 2.7.2021 was void ab initio.
Serba Dinamik’s contention that EY Consulting’s appointment is unsuitable because EY Consulting’s affiliate is the auditor of Bursa Securities Malaysia Bhd and hence lacked independence.
“EY Consulting had acted contrary to its undertakings in the letter of engagement when it provided a ‘Factual Finding Update’ to the Securities Commission without seeking Serba Dinamik’s consent,” it said in the filing.
Serba Dinamik is also seeking interim injunctive relief against EY Consulting pending the full and final disposal of the OS to restrain EY Consulting from releasing, revealing, divulging and/or disseminating any findings, report, memorandum, opinion about SDHB and its group of companies, whether in whole or in part, to anyone, in any format, whether in print, electronically, or via any media or forum.
In addition, Serba Dinamik is also seeking restitution and/or damages against EY Consulting.
The application for interim injunctive relief is fixed for hearing on November 11, and the case management for the OS has been fixed on November 17, 2021.
Apart from the potential damages to be assessed and costs that may be awarded against EY Consulting and the corresponding legal costs, the OS is not expected to have any other material financial impact on the company for the financial year ending June 30, 2022.
The OS is not expected to have any business and operational impacts on the company.