Peers comparisons , weekend studies ....not a buy or sell call



https://m.malaysiastock.biz/Corporate-Infomation.aspx?securityCode=5279&section=financial


https://www.malaysiastock.biz/Corporate-Infomation.aspx?securityCode=7277

For the cumulative 15 months, the group posted total revenue of RM7.4 billion, and a net profit of RM744.61 million.

For the cumulative 15 months, the group posted total revenue of RM7.4 billion, and a net profit of RM744.61 million.

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Serba Dinamik posts RM112 mil net profit for 5QFY21, supported by O&M ops
Ahmad Naqib Idris
/
theedgemarkets.com

June 25, 2021 23:13 pm +08

Serba Dinamik posts RM112 mil net profit for 5QFY21, supported by O&M ops
-A+A

KUALA LUMPUR (June 25): Serba Dinamik Holdings Bhd, which announced earlier today the resignation of five independent directors, recorded a net profit of RM112.52 million for the quarter ended March 31, 2021 (5QFY21), contributed mainly by its operations and maintenance (O&M) segment.

There is no comparison for the corresponding quarter of the previous financial year, as the group had changed its financial year end to June 30, 2021, from Dec 31, 2020 on May 7.

Its latest quarterly revenue came in at RM1.38 billion

The O&M segment accounted for 90% of its revenue for the quarter, amid the resilience and robust maintenance, repair and overhaul (MRO) and IRM activities in the Middle East region, namely UAE, Qatar and Oman, followed by Malaysia.

The balance its revenue was contributed by its engineering, procurement, construction and commissioning (EPCC) segment (7.2%), and the information, communication and technology (ICT) segment (2.2%), according to Serba Dinamik in a statement.


In terms of geography, the group said Malaysia remains its largest revenue contributor, providing RM409.31 million or 30% of its revenue for the quarter.

Regionally, the Middle East accounted for 64.9% of its revenue, followed by Southeast Asia (31.3%), and Central and South Asia (2.9%). The remainder of its revenue came from Tanzania and the UK at 0.6% and 0.3% respectively.

For the cumulative 15 months, the group posted total revenue of RM7.4 billion, and a net profit of RM744.61 million.

“Whilst our core revenue contributors remain to be the O&M and EPCC segments, we are aggressively growing our ICT business locally and globally.

“The Covid-19 pandemic and current Movement Control Order (MCO) has pushed the urgency for Serba to grow and explore strategic sectors of the economy,” said Serba Dinamik group managing director and chief executive officer Datuk Mohd Abdul Karim Abdullah.

He added that the group has been pursuing opportunities in non-oil and gas areas, including satellite broadband.

The group has also expanded into the US via the sponsoring of Data Knights Acquisition Corp, a special purpose acquisition company (SPAC).

“Through the SPAC sponsorship, we are confident to be in a good position to benefit from the potential returns as an early entrant. Concurrently, this venture provides an opportunity for the exposure to a larger pool of investors, especially for technology-related businesses,” said Mohd Abdul Karim.

Meanwhile, he said the group is doing its utmost to resolve its current issues, emphasising that it is business as usual for Serba Dinamik.

Serba Dinamik is in the midst of suing its former external auditor KPMG PLT, after the two fell into disputes over the latter raising red flags on the group's auditing issues recently. On Thursday, KPMG announced it has resigned as its auditor with immediate effect, following a lawsuit that Serba Dinamik filed against it alleging negligence, breach of contract and breach of statutory duty.

Serba Dinamik has said it would appoint Ernst & Young Advisory Services Sdn Bhd as an independent reviewer to look into the issues that KPMG raised, and that its board of directors would meet today to decide on whether or not to expand the scope of work to be undertaken by reviewer.

As of time of writing, it has yet to formalise the engagement or update on the outcome of the board's meeting today.

Meanwhile, of the five independent and non-exeucitive directors of the group who have resigned from the board, four cited differences of opinion with the company over its decision to take legal action against KPMG.

The five who resigned are — Rozilawati Basir, Sharifah Irina Syed Ahmad Radzi, Tengku Datuk Seri Hasmuddin Tengku Othman, Hasman Yusri Yusoff and Masleena Zaid, according to several Serba Dinamik bourse filings today.

Only Masleena, who was recently appointed to the board by the oil and gas services firm, cited "personal commitment" as the reason for her resignation.

Serba Dinamik fell 12.5 sen or 23.4% to a record low of 41 sen, giving the group a market capitalisation of RM1.53 billion.

Siaokar thanks for sharing

Baca biar betul2 ..AA billions lost still no PN 17 ...QR out so SC can relax ...Dato Karim leadership will prevail soon ...hahaha...not a buy or sell call ya

Baca biar betul2 announcent by Karim after 5pm ...Bursa tutup. 445pm ...

Orang lama INED pro KPMG ma ...baca betul2

Serba Dinamik posts net profit of RM112.52 million, revenue at RM1.38 billion
By NST Business
June 25, 2021 @ 7:52pm

Serba Dinamik posts net profit of RM112.52 million, revenue at RM1.38 billion
Serba Dinamik Holdings Bhd registered a net profit of RM112.52 million and revenue of RM1.38 billion for the financial year ended March 31, 2021.
KUALA LUMPUR: Serba Dinamik Holdings Bhd registered a net profit of RM112.52 million and revenue of RM1.38 billion for the financial year ended March 31, 2021.

There is no quarter-on-quarter comparison Serba Dinamik changed its financial year-end to June 30, 2021 (FYE21) from December 31, 2020.


For the quarter, the company's operations and maintenance (O&M) segment was the largest contributor to the revenue, at RM1.26 billion or 90.5 per cent of the total revenue.

"This was the result of resilience and robust maintenance, repair and operations (MRO) and inspection, repair and maintenance (IRM) activities in the Middle East region namely United Arab Emirates (UAE), Qatar and Oman, followed by Malaysia.


"Contributing RM99.32 million or 7.2 per cent of revenue was the company's engineering, procurement, construction and commissioning (EPCC) segment, which came in as the second-largest revenue contributor," it said.

Serba Dinamik said Malaysia remains the largest revenue contributor, providing RM409.31 million or 29.6 per cent of total revenue for the quarter.

Southeast Asia region contributed RM432.77 million or 31.3 per cent of total revenue while the Middle East contributed RM898.15 million or 64.9 per cent.

Central and South Asia contributed RM40.84 million or 2.9 per cent of the total revenue.

The remaining contributions came from Tanzania and the United Kingdom at RM8.30 million or 0.6 per cent and RM4.20 or 0.3 per cent respectively.

For a cumulative 15 months, the company registered a net profit of RM833.59 million, while its revenue stood at RM7.40 billion.

Group managing director and group chief executive officer Datuk Mohd Abdul Karim Abdullah said whilst the company's core revenue contributors remain to be the O&M and EPCC segments, Serba Dinamik aggressively growing its information, communication and technology (ICT) business locally and globally.

Karim said the Covid-19 pandemic and current Movement Control Order (MCO) has pushed the urgency for Serba Dinamik to grow and explore strategic sectors of the economy.

"The company has been persistent and proactive in pursuing new opportunities in the non-oil and gas areas.

"Our entry into the space industry is via the opportunity to provide connectivity to the unserved and underserved areas in the rural areas of the country.

"We focused on providing solutions to these areas by utilising the satellite broadband connectivity to narrow down the urban-rural digital divide," he said.

Karim also said Serba Dinamik wants to give assurance to its valued shareholders and stakeholders that the company is doing its utmost to resolve the current issues in the most speedy and efficient manner possible.

"We wish to emphasize that we have been operational with business remains as usual, and we are optimistic and confident on the company's prospects despite the current circumstances arising from the Covid-19 pandemic," he added

Believe in Dato Karim leadership ....

Relax got holding power ....the verdict not out yet ..now SD just doing some Internal Spring Cleaning ...

Which company got no gangster politics ? That’s why must have multi racial ...cannot only one kind

UALA LUMPUR: Serba Dinamik Holdings Bhd lost almost half of its board members on Friday in the latest twist to the company's rapid fall from grace. The stock plunged 23% to a new low on Friday.

Filings with Bursa Malaysia today showed that five of its independent and non-executive directors have resigned, with four of them stating their disagreement over Serba Dinamik's decision on Wednesday to take legal action against its former external auditors as their reasons for leaving.

The four independent directors are Datuk Seri Tengku Hasmuddin Othman, Hasman Yusri Yusoff, Sharifah Irina Syed Ahmad Radzi and Rozilawati Basir.

Meanwhile, Masleena Zaid, who was recently appointed by the company, has also resigned citing personal reasons.


KPMG, on Thursday, resigned as Serba Dinamik's external auditors following the company's legal action.







Separately, Serba Dinamik posted a net profit of RM113mil, or 3 sen a share in the three-month ended March 31 on revenue of RM1.38bil.









The latest set of results were lower compared with December quarter net profit of RM202mil and revenue of RM1.8bil.

Serba Dinamik, in early May said it has changed financial year end from Dec 31 to June 30, citing difficulties in finalising its financial accounts due to lockdowns in various countries it operates.

However, in late May, it was revealed that its former external auditors KPMG had raised concerns over some RM3.5bil worth transactions and sales.

Serba Dinamik Serba rejected the concerns and has filed a suit against KPMG earlier this week.

The stock plunged 23% on Friday to close at a new low of 41 sen.

Group Managing Director / Group Chief Executive Officer Datuk Mohd Abdul Karim Abdullah, in a statement today, assured his investors and stakeholders that the company is doing its outmost to resolve the matter.

“We want to give assurance to our valuable shareholders and stakeholders, that we are doing our utmost to resolve the current issues in the most speedy and efficient manner possible," he said.

"We wish to emphasize that we have been operational with business remains as usual, and we are optimistic and confident on the Group’s prospects despite the current circumstances arising from the COVID-19 pandemic," he added.

Earlier on Friday, the Malaysian Institute of Corporate Governance (MICG) described Serba Dinamik’s decision to formally file legal proceedings against its external auditors KPMG PLC as “most unusual” particularly before the audit is completed.

MICG deputy president David W. Berry said the legal action particularly before the audit is complete and the company’s earlier proposed independent review has commenced, “is to be regarded as a regrettable decision – a view we believe will be shared by the regulators”.

“It is to be hoped a way forward is agreed soon and the outcome embellishes Malaysia’s reputation as a financial market which exemplifies best practices in corporate governance,” he said.

Serba Dinamik MD: Daily operations running as usual, group revamp if needed
CORPORATE NEWS
Friday, 25 Jun 20213:40 PM MYT


Group managing director and chief executive officer Datuk Dr Mohd Karim Abdullah did not rule out the possibility of a change in the group's organisational structure.


KUALA LUMPUR: Despite the daunting challenges, the day-to-day operations of global integrated engineering services provider Serba Dinamik Holdings Bhd are still running as usual and remain relevant as an intact Bumiputera company.

Group managing director and chief executive officer Datuk Dr Mohd Karim Abdullah acknowledged that the issue of external auditor needed the management's attention, but each branch of the group's business remained focused on their respective roles.


"In the current situation, the business continues to run and Serba Dinamik remains committed to giving dividend returns to shareholders," he told Bernama on Friday.

Mohd Karim did not rule out the possibility of a change in the group's organisational structure in ensuring that corporate governance is strengthened in accordance with the principles of the Malaysian Code on Corporate Governance.


He said Serba Dinamik was also in discussions with several international banks to get business loans so that every plan could be implemented.

"Businesses should have some forward moves to provide business capital and for now, we have held several discussions with international banks for the provision of working capital," he said.

Mohd Karim said the companies in the Serba Dinamik group continue to show interesting developments in every branch of business at home and abroad.

He said the original equipment manufacturer's (OEM) business remained relevant today driven mainly by the rise in world crude oil prices to above US$70 a barrel.

"It gives a lucrative margin with a projection of 17 per cent compared to other players in the upstream oil and gas market. This is a projection of the sector, particularly the OEM-based business which is quite encouraging,” he said.

Apart from that, Mohd Karim said the Serba Dinamik exploration in the space economy was also on schedule and would set up new subsidiaries to venture into the space industry.

According to him, the subsidiary will manage its involvement in the industry through capacity building and partnerships with various agencies as well as international players.

In March, Serba Dinamik announced a partnership with the Malaysian Space Agency (MYSA) to further strengthen the economic development and space industry in Malaysia.

The group also said that Malaysia was not yet involved in the new space economy although it was ready to do so.

Meanwhile, MYSA also took the initiative through the Ministry of Science, Technology and Innovation (MOSTI) to introduce the Malaysian Space Board Bill 2020 which was tabled for first reading last year.

In the same development, Mohd Karim said, the Serba Dinamik plan is to venture into the space economy to connect information and communication technology.

This is because, he explained, it is one of the core competencies in the company through Internet connection to areas, especially those who still do not have Internet connection in the state which is supplied or not supplied with satellite technology.

"This is important to support the company’s various initiatives on the technology gap that requires broadband and Internet connections to realise its use,” he added.

Mohd Karim also said that the provision of facilities and infrastructure indirectly opened up a larger market for related industries under the Fourth Industrial Revolution.

Serba Dinamik has also signed a memorandum of understanding with SWISSto12, which specialises in component manufacturing technology for use in satellites via Swiss-based 3D printing.

Through the collaboration, Serba Dinamik will enhance its capabilities in the high-value engineering fields needed to support the space economy. - Bernama

Stock: [SERBADK]: SERBA DINAMIK HOLDINGS BHD

Jun 25, 2021 8:34 AM | Report Abuse

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Wrong Ppl for the Wrong Job ..

Auditors should communicate professional scepticism to clients before premature reporting to regulators — Serba Dinamik
Emir Zainul
/
theedgemarkets.com

June 25, 2021 11:25 am +08

Auditors should communicate professional scepticism to clients before premature reporting to regulators — Serba Dinamik
-A+A
KUALA LUMPUR (June 25): Serba Dinamik Holdings Bhd, whose share price dropped to a fresh record low of 46.5 sen this morning, issued a statement late last night to reiterate again its stance that its former external auditor KPMG PLT had in fact committed a breach of contract, and that the latter should have communicated its professional scepticism to the client instead of prematurely reporting it to the regulators.

In a response to media releases issued by the Securities Commission Malaysia (SC) and Bursa Malaysia, the oil and gas (O&G) firm also restated its stand that KPMG had raised red flags on the group's auditing issues in an inappropriate manner.

Serba Dinamik was referring to KPMG's decision to go to the SC last month with its audit red flags in the company’s books for the 12-month period ended Dec 31, 2020.

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Following that, the SC announced in the first week of June that it had started investigations into the matter in regard to the dispute between Serba Dinamik and KPMG over the handling of the audit issues, and that it had secured documents and records from Serba Dinamik to assist its investigations.

"We thank profusely both institutions (the SC and Bursa) for alerting us of the laws in relation to auditors’ obligations in reporting to the SC.

“We, however, wish to point out that auditors in performing that duty have the highest onus to exercise that professional opinion, that there has in fact been a breach or non-performance of the identified laws, not a mere reasonable belief on their part that that was so.

"We also accept the advice by the two esteemed institutions, with gratitude, that auditors can exercise some elements of professional scepticism during their audit, but this mere scepticism must be communicated to their clients for resolution of the matters, and mere scepticism is not sufficient for auditors to prematurely report to the detriment of the companies and the market," Serba Dinamik said in a press statement yesterday.

The statement was released after the announcement that KPMG had quit as Serba Dinamik’s external auditor, citing the reason as it could not discharge its duty independently.

In the statement, Serba Dinamik also highlighted that it had never claimed that its newly appointed chairman Datuk Mohamed Ilyas Pakeer Mohamed had “officially communicated with either institutions”, namely Bursa and the SC.

"We thank the institutions for not delving into the facts of this case, whose facts are still at large," it added.

To recap, Mohamed Ilyas during a press conference on Tuesday claimed that he had previously spoken to the SC and Bursa about KPMG's alleged breach of contract and non-performance.

Both the SC and Bursa later denied such a meeting with Mohamed Ilyas.

The commission pointed out that auditors should be allowed to carry out their responsibilities and render their independent opinion without fear or favour, and discharge their duty free from any retaliation, after Serba Dimanik filed a lawsuit against KPMG.

The audit issues, which were revealed to the public late last month, have wiped off more than RM4 billion market capitalisation from Serba Dinamik. Its share price has plunged from RM1.61 prior to the news to below 50 sen currently.

KPMG highlighted discrepancies involving transactions to the tune of RM4.54 billion to the company's independent directors last month.

Institutional shareholders, such as the Employees Provident Fund (EPF) and Kumpulan Wang Persaraan (Diperbadankan) (KWAP), have cut their stakes in the company.

At the time of writing today, shares in Serba Dinamik were six sen or 11.2% lower at 47.5 sen with a market capitalisation of RM1.77 billion.

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The KPMG cheating scandal was much more widespread than originally thought

Bill Michael fights to restore KPMG’s image and profits
‘I’m not going to tolerate bad behaviour,’ says embattled UK chairman

SEC Charges Three Former KPMG Audit Partners

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Scandals Force KPMG, PwC to Repair Reputations

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GE divorced from KPMG after 111 years

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U.S. SEC suspends former KPMG auditors for improper professional conduct

Wrong Ppl for the Wrong Job ..

Serba stands firm with its unprecedented legal suit against external auditor


Author: acinanatucer | Publish date: Thu, 24 Jun 2021, 2:51 PM

INVESTORS are by nature astutely biased in their very own way, henceforth they can often be divided into two extremes.

The Serba Dinamik Holdings Bhd saga with its external auditor KPMG PLT provides an ideal scenario to gauge the varying degree of biasness possessed by humans although nobody – at this juncture – can be faulted for their respective stance or judgment.

For example, AmResearch has every reason to remain cautious on the chances of a successful legal suit by the global integrated oil & gas (O&G) service provider against a globally recognised or Big-Four accounting firm.

“Until the independent review is completed together with the audit finalisation and issuance of the group’s annual report by Oct 31 this year, we expect negative market speculations to continue percolating and impact the share price throughout the process which could last up to four more months,” opined analyst Alex Goh in a company update.

Recall that Serba Dinamik had on Tuesday (June 22) filed a civil suit against its external auditor KPMG over damages of RM4.9 bil (2.1 times the company’s market capitalisation) stemming from the plunge in its market cap along with loss of confidence from customers, investors and financial institutions.

On the flip side

On another extreme, let’s not forget that Serba Dinamik, too, will not sit down behaving like a lame duck.

With RM3.78 bil or 63% of its market capitalisation having been wiped out since May 31, it only makes valid sense that Serba Dinamik, too, has its ‘artilleries of sorts’ for self-defence.

After all, many investors – from retailers to institutional funds – had incurred substantial losses judging merely by its 52-week share price range of 54 sen (intraday low on June 14) to RM2.09.

To put Serba Dinamik’s legal suit in perspective, the company has clarified that it is not suing KPMG for submitting a damning report to the Securities Commission (SC) against it, but for the way the external auditors have conducted their audit.

Ironically, however, Serba Dinamik is taking KPMG to task for a breach of Section 320 of the Capital Market & Services Act 2007 (CMSA) even as Section 320(2) of the CMSA stipulates that the auditor will not be liable to be sued for any report submitted by the auditor in good faith and in the intended performance of any duty imposed on the auditor.

“It is, therefore, noteworthy to acknowledge that Section 320(1) of the CMSA 2007 requires that an auditor form a professional opinion that there has been a breach before they can make a report to SC,” a company source told FocusM.

“In this regard, KPMG has in our view performed a substandard auditing work for they failed to form a professional opinion on the matter and therefore could not have acted in good faith – in fact they acted in bad faith.”

As such, the source said Serba Dinamik is left with no better option than to file a writ and statement of claim against KPMG on the grounds of professional negligence, breach of contract and breach of statutory duty.

“It is no exaggeration that KPMG did not even have a sit down session with the management to at least try to resolve the issue,” lamented the source.

“Despite being the company’s auditors for seven years, they chose the easy route out in discharging their responsibilities by asking Serba Dinamik to hire a forensic team and by going directly to the regulators. Perhaps this stems from the issue of their resources.”

Pressed for examples, the source named them as follows:

Not doing proper verifications;
Not engaging with the auditee (Serba Dinamik);
Not taking into account responses by auditee after more than 60 days have lapsed; and
Blaming Serba Dinamik over their own mistakes and negligent acts and then refusing to complete audit.*
“Given the above justification, Serba Dinamik’s push to replace KPMG is not something drastic as both Petron Malaysia Refining & Marketing Bhd and Malaysia Building Society Bhd have recently appointed in PricewaterhouseCoopers PLT (PwC) as their auditors in place of KPMG,” added the source. – June 23, 2021

* Below are some specific instances where Serba Dinamik has swiftly reacted to the various ‘loopholes’ identified by KPMG:

Elon musk accumulating great company like SD

Hahaha Elon Musk also want a piece of SD ...maybe Karim good friend

Elon Musk may privatisation SD soon ...check his FB

Got info from Elon's FB

Elon Musk will bail and help out SD !

So many Smart Alec PI ....KPMG should head hunt these talents in this talent ...off course after settle out of the court

Fund managers waiting jump in ...the earlier the better coz its cheaper.

Flushing out weak holders and speculators that dont deserve to take profits hahaha ....nice play operators

Dump and Pump ..hahaha

So many represents KPMG wannabe can better do their job here ..kikiki

TOP 30 shareholders AVG IPO harga beli Rm1.50. Tunggu apa lagi ...sapu all in

Dah Adv Q beli lar ...harga murah skrng ini

Relax....stil havent deadline submission for QR yet ma ...so many other Bursa listed firms also apply for extension ...why so kan cheong?
SD has many projects ...business as usual ...not happy why rant on this forum ...dare you to email SD CS and later prepare your own defense lawyer ya...kikiki

i m willing to pay for KPMG legal fees if i dare em to sue back after today limit up hahaha

If no wrong sue back lar ...no brainer right ?

Really arr ...hahaha ...Let the fire becomes bigger on KPMG overtime...btw 1MDB lawsuit still pending worrr ...human is err even with the strictest rules

Karim and team will make sure SD will prevail again ...even stronger and better!

Ths issue is those that bought at IPO rm1.50 , you think they will dispose at loss...think again . Who will sell low? Top up avg up more like it ...hahaha

Waah really arrr?? I top up even more later ...thanks

Many KPMG spies in this forum ..thats more dangerous...IF KPMG so right pls come out from your cave and clear your names ....keeping quiet will only mean you have no case ....hahaha

Do it like SD in youtube ...foc

HIGHLY possible for SD to propose company share BULK buy back to it FAIR Value on the next AGM . Buy buy buy...CEO Karim 40th richest in MSIA according to Forbes may come in to support 2

Now BAU business as usual and move forward ...some still holding on to the PAST ....so sad

Great news ...RED? Bad news also RED ? Bursa is for the fittest and fastest keyboard warrior ...not for grumpy old folks all talk slow action ...pls get your brain check ya ..

Serba to sue external auditor for a “sum not small but astronomical”
By Cheah Chor Sooi
11 hours ago
in Markets, Top

SERBA Dinamik Holdings Bhd is taking its impasse with external auditors KPMG PLT with regard to the completion of the company’s statutory audit for FY2020 a step further – to file a civil claim for substantial damages inflicted on its share price and market capitalisation.

Among others, the claims will be made on the grounds of professional negligence, breach of contract and breach of statutory duty, according to the company’s newly-appointed chairman Datuk Mohamed Ilyas Pakeer Mohamed.

“Serba Dinamik contends that the findings raised by KPMG were not substantive in nature that warrants an independent review,” he told a media conference in Shah Alam. Also present were Serba Dinamik’s group managing director and CEO Datuk Dr Mohd Abdul Karim Abdullah and solicitor Tan Sri Muhammad Shafee Abdullah.

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“In fact, the issues faced by KPMG are entirely attributable to their own negligence, among other breaches, in the course of the audit process which forms the subject matter of the civil suit based on the above-cited grounds.”


Datuk Mohamed Ilyas Pakeer Mohamed
As to why Serba Dianmik chose to pursue a legal path instead of awaiting the findings of its recently-awaited independent reviewer Ernst & Young Advisory Services Sdn Bhd (EY), Mohamed Ilyas described KPMG as “a shop lot auditor who behaves likes God and gangster”.

“KPMG’s negligence has resulted in more than RM3 bil of Serba Dinamik’s market capitalisation being wiped out (over the past two weeks),” he lamented. “I will personally speak to the Government to take action against KPMG for pinning down a reputable Bumiputera company.’

Muhammad Shafee contended that having consulted the board of the global integrated oil & gas (O&G) service provider – and having studied the impending issues from all angles – he derived at the conclusion that KPMG has not behaved professionally in executing its duty.

“The company has strong case and strong probability of success … as to the question why didn’t Serba Dinamik work with KPMG to resolve the issue from the outset, the question should be addressed to KMPG as to why it chose to remain silent over the past 50 days but instead insisting on appointing an independent reviewer.”

Given the severity of the damage, the quantum of the legal suit “wouldn’t be small but astronomical”, according to Muhammad Shafee.

“It’s difficult to ascertain at this juncture but first and foremost, RM3.7 bil in market capitalisation has been eroded not to mention total loss of confidence in addition to wanting to seek punitive damages for negligence which cannot be easily computed.”


(From left) Datuk Dr Mohd Abdul Karim Abdullah, Datuk Mohamed Ilyas Pakeer Mohamed and Tan Sri Muhammad Shafee Abdullah
As to why the legal suit “has superseded” the EY report, Muhammad Shafee contended that KPMG has erred all along in its auditing process.

“As a result, the company (Serba Dinamik) has taken a big hit for something which is not its fault. There is a dire need to seek justice for the company whose reputation has been dragged down (so low),” he pointed out.

“If KPMG doesn’t resign given that the present relationship is no longer tenable, then shareholders can moot an EGM (extraordinary general meeting) to remove the auditor by seeking an alternative among the Big-Four firms”.

Abdul Karim who is looking forward to put the matter to rest after a traumatic three weeks said by putting the case before the court, he will be able to clarify the whole issue openly and freely while enabling the operations of Serba Dinamik to return to BAU (business as usual).

While insisting that the decision with regard to the formation of independent committee is status quo, the founder of Serba Dinamik reiterated that his company remains fundamentally sound with viable businesses and a global reach.

“I’ve been in constant touch with many of our overseas business partners and investors of whom many are keeping their faith in us and regard the issues being brought up by KPMG as petty.”

Abdul Karim also defended Serba Dinamik’s decision to appoint three new independent directors as a necessity in view of the current development surrounding the company.

“We cannot afford to have independent directors who sit in the room without talking to our substantial shareholders; in short, we want more action-oriented INED with relevant qualification and know-to help the company to surf through the difficult time.”

At the close of today’s trading, Serba Dinamik was up 2.5 sen or 4.17% to 62.5 sen with 576.23 million shares traded, thus valuing the company at RM2.33 bil. – June 22, 2021

The actions of KPMG ultimately led to the impasse and when news of this reached the
open market, the natural and foreseeable consequence was a sharp drop in SDHB’s
share prices, market capitalization and general confidence.
After a comprehensive evaluation of this matter and obtaining a series of legal advice,
we are of the view that SDHB has a good and actionable claim against KPMG as a
result of their action or inaction in refusing to complete the audit.
We hope this explanation provides clarity to the issues faced by SDHB with regards
to this matter however in any avoidance of doubt, SDHB in order to clear any concerns
with our regulators and the market, SDHB shall still investigate the issues raised by
KPMG and announce the findings, notwithstanding the filing of this civil suit

This was despite the fact that senior members of the said companies had
subsequently confirmed the existence of these individuals and no further action
was taken by KPMG
2) In another instance involving a middle eastern foreign vendor, KPMG had
performed a site visit to verify the existence of their office and concluded that
the office did not exist.
Upon immediate examination of KPMG’s concerns, SDHB immediately
informed KPMG that the reason they did not find the office was because the
address concerned had a mix of numerical digits and Arabic letters which the
auditor misread and ultimately went to the wrong address.
Proof of the correct address and office was provided by SDHB but KPMG had
refused to verify the same.
3) When verifying a phone number of a vendor for SDHB, KPMG had placed
reliance on an open-source phonebook app called “TrueCaller” which produced
an inaccurate result towards the ownership the number.
Upon being informed of this, SDHB obtained an official telephone bill registered
in the name of SDHB’s vendor to address this concern, yet no action to verify
the same was undertaken by KPMG for reasons best known to them.
4) KPMG had also taken issue with discrepancies with IT contracts entered with
foreign vendors where in the said contract the company name concerned was
designated with an L.L.P. whereas in subsequent invoices the company
concerned designated themselves with an LLP.
The difference of these two abbreviations is akin to a company having a “Sdn.
Bhd.” and “Sdn Bhd” where these matters were not substantive in nature and
would have been easily resolved with some diligence.
While SDHB appreciates that these matters ought to be addressed by KPMG prior to
the completion of their audit report, they could have been resolved by KPMG
themselves without need of a 3rd Party independent review. We have also noted that
the entire process of audit confirmations undertaken by KPMG did not observe
international and local protocol such as not having any or adequate engagement
between KPMG and SDHB, which is a fatal mistake on KPMG’s part.

Immediate Release
MEDIA SUMMARY ON A CIVIL ACTION TAKEN BY SERBA DINAMIK
HOLDINGS BERHAD AGAINST KPMG PLT
SHAH ALAM 22 JUNE 2021: As has been widely reported in various media outlets
over the recent past few weeks, Serba Dinamik Holdings Berhad (“SDHB”) has been
at an impasse with our external auditors KPMG PLT (“KPMG”) towards the completion
of the statutory audit for the Financial Year of 2020.
Regrettably due to the ongoing situation, a lot of adverse speculation has been created
in the market that has amongst others, resulted in a significant drop in our share price
and overall market capitalization.
Accordingly, SDHB has made the decision to file a civil claim for substantial damages
against KPMG on the grounds of professional negligence, breach of contract and
breach of statutory duty on broadly the following grounds, among others.
KPMG in the course of their audit raised issues in obtaining various confirmations from
SDHB’s customers and vendors on various payables and receivables including
establishing the existence of the said customers and suppliers.
These matters were raised in a Special Board of Directors meeting on 3rd May 2021,
where KPMG indicated that they were not willing to complete the audit until and unless
a 3rd Party independent review is conducted on the alleged findings raised by KPMG.
SDHB contends that the findings raised by KPMG were not substantive in nature that
warrants an independent review and that the issues faced by KPMG are entirely
attributable to their own negligence, among other breaches, in the course of the audit
process which forms the subject matter of the civil suit based on the grounds cited
above.
Some of the alleged findings raised by KPMG and the immediate explanations
provided by SDHB include:
1) KPMG had concluded that several individuals who had signed audit
confirmation requests on behalf of their companies (who are SDHB’s customers
and suppliers) did not exist merely based on calling the front desk receptionist
of these companies to verify identity (some of which employ thousands of staffs

Business as usual and move on ..


Oil Prices Hit Multi-Year High Following Iranian Elections

Keep your faith with Karim and to lead SD ...ignores annoying sour grapes ranting like old folks ...hahhah

Tmr Whale will come and eat up those assorted reptiles carnivores hahhaha

3,444,400
Disposed Direct Interest

Such a trival numbers ...hahaha

Decade Of Chaos Could Send Oil To $130 Per Barrel
By Irina Slav - Jun 21, 2021, 7:00 PM CDT

SD business as usual and move on ....