The company, which is listed on Singapore stock exchange market, has published a regulatory statement: ‘After consultations with legal counsel, the board wishes to announce that the company has commenced legal action in the High Court of the Republic of Singapore on 5 October 2017 against Deloitte & Touche for a claim for loss and damage suffered as a result of the professional negligence of Deloitte and will be seeking unliquidated damages to be assessed.

‘The company will make further announcements as appropriate of any material developments in relation to the above proceedings.’

DMX appointed PwC Singapore as its auditor in 2014 to replace Deloitte, which had been DMX's auditor since its incorporation in October 2001.

A subsequent internal investigation into a number of allegedly improper transactions by DMX in 2008 and 2009 resulted in DMX filing a report to the Hong Kong police, which led to the arrest of its CEO and CFO in February 2015. Trading in DMX shares has been suspended since March 2015.

In a regulatory announcement in May 2015, DMX said: ‘There is uncertainty in relation to account receivables arising from past transactions amongst the company, and its clients and vendors, and the possibility of such account receivables not being collectible; and there is uncertainty in relation to the asset values recorded in respect of supplies, tangible and intangible fixed assets of the company in connection with such transactions.’

Subsequently the company said the unaudited account receivables and other receivables for the financial year ended 31 December 2014 amounted to approximately $378m (£288m), and it was uncertain as to the collectability of these account receivables. In addition, the unaudited tangible and intangible fixed assets attributable to the transactions in question amounting to $28m (£21m) remains unsubstantiated due to the lack of documentary evidence.

Deloitte has not made a comment on the issues.

Report by Pat Sweet