Serba Dinamik Annual Report 2021

Integrated Report 2021 91 CEO’S STATEMENT Dear Stakeholders, Following the change of our financial year end ("FYE") from 31 December 2020 to 30 June 2021 – and the ensuing challenges that came our way – there is perhaps no better way to sum up how FY2020 and most part of our FY2021 has unfolded for Serba Dinamik then to describe it as a year of reckoning from many fronts. Since our listing on the Main Board of Bursa Malaysia on 8 February 2017, never had Serba Dinamik found itself confronted by a culmination of external and internal challenges of the highest severity. From the pandemic front, the Group is doing its utmost best to regain its footing after having to endure economic/financial impact from the imposition of various movement restrictions – ranging from the imposition of the first movement control order ("MCO 1.0") on 18 March 2020 to a total lockdown from 1 June 2021. But as SerbaDinamikwas focusing its efforts to overcome adversities of theCOVID-19 pandemic, the Group was dealt another blow when our former external auditor KPMG PLT raised red flags with regard to the statutory audit of our FY2020 accounts. Even as we did our utmost best to clear the air over the purported RM4.54 billion in questionable transactions with our side of the story, we were unable to prevent excessive damage from inflicting our share price and market capitalisation. This leaves us with no better option than to do the unthinkable – filing a civil suit against the auditing firm over damages of RM4.9 billion stemming from the plunge in Serba Dinamik’s market cap along with loss of confidence from customers, investors and financial institutions. As our Dato’ Chairman has penned in his message to shareholders, the Group has initiated a wide ranging measures to re-build Serba Dinamik from scratch – from ensuring Business As Usual ("BAU") group-wide to seeking viable solutions to the mess that we found ourselves currently in and to re-strategising our entire business operations vis-à-vis a realignment exercise at both our board and senior management levels. Painful and tedious as it seems, rest assured that we are not going to lie face down to admit defeat. History has proven that turbulence times do bring the best out of people – the way Japan rose from the ashes of the Hiroshima and Nagasaki atomic bombing to be a developed economy in such a short time span has inspired us to emulate such feat.