In a letter to Bursa dated Oct 27, Serba Dinamik chairman Datuk Ilyas Mohamed described the market regulator's suggestion that the company takes steps to make an application for extension of time as "an act which is in excess of power". 

Serba Dinamik contented that Bursa had acted outside the limits of its power.

Special independent reviewer Ernst & Young Consulting Sdn Bhd had reportedly made a PowerPoint presentation on Oct 21 which was attended by three of Serba Dinamik's independent non-executive directors in the presence of representatives from Bursa.

However, the directors claimed that the briefing was merely "a preliminary finding which was inconclusive" with EY not reaching any conclusion, hence certainly not for them or anyone else to second guess the conclusion that EY might come to when it completed the review.

"At the moment, everything is very much a work-in-progress and in piece-meal basis, hence it's very inappropriate to release the findings which otherwise would further cloud the achievement of our target rather than to resolve the problem at hand," they reportedly said.

"As this was only a preliminary findings, there was no copies of handouts or materials being circulated during the presentation … moreover, it was meant to be that way," they added.

In a statement on Oct 22, Bursa claimed that the review's factual findings update as of Sept 30 had been communicated to three out of four Serba Dinamik's independent non-executive directors on Oct 21.

This led to Bursa issuing a directive under paragraph 2.23 of the Main Market Listing Requirements (MMLR) to Serba Dinamik to, among others, make an announcement on the findings from the update  by Oct 26.

Bursa also ruled that Serba Dinamik's stock trading suspension which started at the outset of Friday's (Oct 22) afternoon session would remain indefinitely until the company reveals the findings.

Ilyas further pointed out in his letter that even though EY had delivered the purported update to the directors two days later on Oct 23, the format of the document was merely in a PowerPoint slide format.

"The purported update is a document without an author in that it is not signed off by anyone; had clearly indicated that it was not to be relied upon by anyone; and is not the same document that was presented to the independent directors at the briefing on Oct 21," he noted.

Given that the purported update is not a document made by Serba Dinamik or any of its directors, Ilyas contended that neither the company nor its directors was in a position to suggest that such a document would fall within the terms of paragraph 9.03 and 9.35A of the MMLR.