Reuters reported Serba Dinamik as saying in a stock exchange filing today that it did not see any problems with the contracts and transactions questioned by KPMG.

It also said KPMG has not been able to verify contracts and transactions with 11 customers.

“The company takes the view that there is no issue with regards to the legitimacy and existence of the contracts as well as the value that will render any material impact to the financial and operational aspects of the group for the financial year ending June 30,” the company said.

Serba Dinamik added that it will appoint an independent firm to “review the accuracy and veracity” of the issues KPMG raised.

The company said the issues highlighted by KPMG comprised sales transactions of RM2.3 billion, a trade receivables balance of RM652 million and a materials on site balance of RM569 million.

In another filing with Bursa Malaysia, Serba Dinamik said an extraordinary general meeting had been proposed to remove KPMG as the company’s auditor.

The proposal, put forth by a non-independent non-executive director, who is also a shareholder with 15.96% equity, also recommended that BDO be hired to audit the same period.

Previously, Serba Dinamik criticised KPMG’s decision to stop the audit and request an independent review without engaging the management.

The company also took issue with the fact that KPMG highlighted the issues close to the deadline to announce the accounts.

“We have provided sufficient information … and full cooperation to the auditors to satisfy their extended procedures requirements. Somehow, we were informed that they were unable to obtain confirmation from some of our customers,” Reuters quoted group chief executive officer Abdul Karim Abdullah as saying.

KPMG could not immediately be reached for comment.

Serba Dinamik shares have been suspended since Tuesday when it announced its external auditor had flagged issues related to its statutory audit.