KUALA LUMPUR: Serba Dinamik Holdings Bhd lost almost half of its board members on Friday in the latest twist to the company's rapid fall from grace. The stock plunged 23% to a new low on Friday.

       Filings with Bursa Malaysia today showed that five of its independent and non-executive directors have resigned, with four of them stating their disagreement over Serba Dinamik's decision on Wednesday to take legal action against its former external auditors as their reasons for leaving.

       The four independent directors are Datuk Seri Tengku Hasmuddin Othman, Hasman Yusri Yusoff, Sharifah Irina Syed Ahmad Radzi and Rozilawati Basir.

       Meanwhile, Masleena Zaid, who was recently appointed by the company, has also resigned citing personal reasons.

       KPMG, on Thursday, resigned as Serba Dinamik's external auditors following the company's legal action.

       Separately, Serba Dinamik posted a net profit of RM113mil, or 3 sen a share in the three-month ended March 31 on revenue of RM1.38bil.

       The latest set of results were lower compared with December quarter net profit of RM202mil and revenue of RM1.8bil.

       Serba Dinamik, in early May said it has changed financial year end from Dec 31 to June 30, citing difficulties in finalising its financial accounts due to lockdowns in various countries it operates.

       However, in late May, it was revealed that its former external auditors KPMG had raised concerns over some RM3.5bil worth transactions and sales.

       Serba Dinamik has rejected the concerns and has filed a suit against KPMG earlier this week.

       Shares in Serba Dinamik have lost about three-quarter of its value over the past month.The stock plunged 23% on Friday to close at a new low of 41 sen.

       Group Managing Director / Group Chief Executive Officer Datuk Mohd Abdul Karim Abdullah, in a statement following the release of the company's latest quarterly results today, assured his investors and stakeholders that the company is doing its outmost to resolve the matter.

       “We want to give assurance to our valuable shareholders and stakeholders, that we are doing our utmost to resolve the current issues in the most speedy and efficient manner possible," he said.

       "We wish to emphasize that we have been operational with business remains as usual, and we are optimistic and confident on the Group’s prospects despite the current circumstances arising from the COVID-19 pandemic," he added.

       Earlier on Friday, the Malaysian Institute of Corporate Governance (MICG) described Serba Dinamik’s decision to formally file legal proceedings against its external auditors KPMG PLC as “most unusual” particularly before the audit is completed.

       MICG deputy president David W. Berry said the legal action particularly before the audit is complete and the company’s earlier proposed independent review has commenced, “is to be regarded as a regrettable decision – a view we believe will be shared by the regulators”.

       “It is to be hoped a way forward is agreed soon and the outcome embellishes Malaysia’s reputation as a financial market which exemplifies best practices in corporate governance,” he said.