Press Release

Serba Dinamik’s Response to the Article in The Edge on 26th March 2022
entitled
“What Serba Dinamik did not want you to know”
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Serba Dinamik wishes to state that the article written and published in The Edge dated on 26th
March 2022 is inaccurate, deliberately incomplete and calculated to prejudice Serba. It is time
to understand the other side of this story by connecting the dots that have not been hitherto,
marshalled together.
As a matter of chronology, in early May 2021, KPMG refused to continue the audit of Serba
Dinamik and refused to resign, hence blocking the way for another auditor to be appointed.
KPMG then lodged a complaint to SC and Bursa. On 18th May 2021, SC conducted a raid on
Serba but only provided a sketchy inventory of what was seized.
KPMG resigned on or around 24th June 2021 after being sued by Serba.
In late June and early July, Bursa directed the appointment of Ernst & Young Consulting Sdn.
Bhd. (“EYC”) after reviewing and finalizing the terms of engagement, which categorically
stated that no interim report (which includes the Factual Findings Update (“FFU”) will be
prepared by EYC, even for SC and Bursa.
Between July and September 2021, EYC attended at SC and had drawn up the FFU. EYC
kept it hidden from Serba that the FFU was given to SC and Bursa, this fact is only revealed
at the end of October 2021. By 22nd October 2021, Bursa directed Serba to announce the
FFU, a document which it did not have then.
By 27th December 2021, SC issued charges against Serba, its 2 directors and 2 management
personnel. Three dates have elapsed in the Criminal Courts where SC have failed or refused
to provide documents that will substantiate the charges they have brought against Serba.
On 22nd October 2021, Bursa directed Serba to announce the FFU when Serba was yet to
have a copy of it. Bursa’s direction was followed by an immediate suspension in the trading of
Serba’s securities which remains until today. EYC admitted to releasing the FFU to SC on or
about 11th October 2021 despite expressly undertaking in their letter of engagement that they
will do no such thing.
Of noteworthy is that in preparation of the FFU, EYC did not interview any personnel from
Serba Dinamik, however they have acknowledged by a letter dated 29th October 2021 that
they are required to do so.
The letter of engagement EYC represented that they could be appointed under Main Market
Listing Requirements 2.24 when they are not in fact an auditor. In a High Court decision
delivered on 7th February 2022, the High Court ruled that EYC was an auditor. Although, that
was not the subject matter of suit filed by Bursa Securities. In a separate suit filed by Serba
Dinamik of subject matter was whether EYC is an auditor, the High Court has agreed that EYC
is not an auditor but they did have an arrangement with a licensed auditor. The implication
was that Serba could not regard the letter of engagement issued by EYC as being void.
Press Release
Since Serba is not the author of the FFU, and was being compelled by Bursa to announce it,
EYC was invited by Serba Dinamik to sign their FFU but EYC refused to sign off.
EYC repeatedly refused to signed in their affidavits filed in Court. Serba had also recalled
Bursa that it was Bursa who participated in finalizing the terms of engagement between Serba
and EYC and had knowledge that under the terms of engagement whereby EYC was not to
prepare any FFU.
Bursa also requested Serba to procure EYC’s consent to allow the announcement of the FFU,
which EYC had replied that it was not their problem to deal with. Bursa then filed proceedings
pressing for the announcement of the FFU on the basis that it should be announced because
it exists.
It now appears convenient and greatly sensational to suggest that Serba does not want
anyone to see the FFU. It is Serba’s position that what EYC should do is to sign off the FFU
and then take questions (including from The Edge) concerning them. What The Edge is
reporting suggests that Serba is hiding something when The Edge is instrumental in creating
a misleading narrative. What The Edge doesn’t emphasize is the fact that EYC refused to sign
the FFU, EYC was not to prepare any interim report, while SC and Bursa are not supposed to
be given any FFU.
EYC had stopped working on their letter of engagement since October 2021 despite
maintaining that their letter of engagement is valid. In essence, third parties have been able
to put themselves into a position of being able to make prejudicial statements about Serba
with impunity, which EYC had refused to sign and have conveniently allowed the FFU to be
placed in the public domain.
Serba would like to remind The Edge that it is EYC who should answer what they have written.
As it stands, there is no indication that The Edge had verified anything with EYC, the FFU
remains unsigned, and Serba was put in a bad light.
Against the narrative that Serba is attempting to hide the FFU, the following questions that
should be raised are (i) why did Bursa compel Serba to announce the FFU when it knew that
it was not a document that was supposed to be prepared under the letter of engagement, (ii)
why does EYC refuse to sign what they have written; and (iii) why did SC charged Serba and
its managements but yet refused to produce documents.
Now, let’s question as to whether it is fair to say that Serba is trying to hide something? It must
be crystal clear now that it is not Serba who prepared the FFU.
Furthermore, the above questions are directly questioning where legal redress is being sought
in Court. Serba has lost at the High Court in seeking a declaration that Bursa had acted in
breach of the MMLR. Serba has also lost its bid to seek a declaration of EYC as not an auditor
and their invalid letter of engagement. Bursa has succeeded in its application to seek a court
order to compel Serba to announce the FFU, which is pending hearing of a stay application at
the Court of Appeal. Serba has appealed all cases it did not succeed in the High Court.
Press Release
A very key matter that SC, Bursa, EYC and The Edge must square up is; SC has charged
Serba and 4 individuals stating that RM6 billion in revenue is a false statement. However, SC
has only charged one person relating to the creation of false records, in relation to one
subsidiary whereas that subsidiary had never and could never produce the RM6 billion
revenue. SC has not raised any charges in relation to the records of other subsidiaries which
may account to the RM6 billion reported in Dec 2020’s quarterly financial statement. The
Edge’s article identifies various amounts, which do not amount to RM6 billion, no matter how
they are added up.
The shareholders, creditors, and Serba itself, have been significantly prejudiced. For the
record, the only signed documents are charges brought by SC stating that Serba had made a
false statement, only with respect to the consolidated figure of sales. In relation to the 4th
quarterly financial statements for 31st December 2020 whereby the charges extends to
falsification of accounting records of a subsidiary that does not have RM6 billion in sales.
SC has yet to surface or provide the documents that will allow Serba and its management to
defend themselves, during this time, The Edge has engaged in reporting a multitude of alleged
wrong doings by Serba in a fait accompli fashion. Serba expects SC to follow through with the
trial of the charges in an expeditious fashion.

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About Serba Dinamik:

Serba Dinamik Holdings Berhad (Serba Dinamik) was incorporated as a private limited company in
Malaysia, under the name of Serba Dinamik Holdings Sdn. Bhd. on 2 December 2015, and was
subsequently converted into a public limited company on 13 May 2016. Established in 1993, Serba
Dinamik, through its subsidiaries, is an international energy services group providing integrated
engineering solutions to the Oil & Gas, petrochemical, power generation industries, water & wastewater
and utilities.

Our core business is in Operations and Maintenance (O&M), and Engineering, Procurement,
Construction and Commissioning (EPCC), Information & Communication Technology (ICT) and
Education & Training (E&T). Serba Dinamik has its HQ in Malaysia and is currently present in 27
countries over 5 regions. Serba Dinamik has evolved from a total engineering services provider in
power, energy and broad industries to be a leader in the Industrial Revolution 4.0 via its aggressive
expansion into Digitalization, Innovation and Technology initiatives through wide arrays of offerings
such as SMART Maintenance with Mixed Reality Solution, AI-Lens, Robotic and Haptics solutions, D-
Virtual Expo, Qwik Pay, and a many other smart solutions.

Date: 29 March 2022

For further inquiries, please contact:

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Fairul Nizam Che Rus (fairul.cr@e-serbadk.com)

Vice President, Corporate Communications