Today will have news on the new independent directors replacement...
Appointment of E Y as independent reviewer is pending reply fr KPMG...
Bursa has gave date line to Serba to complete the appointment independent reviewer by this friday.
Both issues could be settle by end of this Friday..

SERBA Dinamik Holdings Bhd will appoint credible corporate leaders to replace the resigned directors as soon as today or latest by Tuesday, as part of its move to reconstitute its board and shore up market confidence in the embattled counter.

The company is seeking to appoint Ernst & Young Advisory Services Sdn Bhd (E&Y) as its independent auditor to review the issues raised by its former external auditor.

https://themalaysianreserve.com/2021/06/28/serba-dinamik-to-rejig-board-with-reputable-appointments/

No doubt quite a lot of PPs cut lost follow IB target price...
Today selling quite is significant contributed by cut loss group, Fund or retail investors/speculators.

Serba share price is sentiment depend now had to tell the direction... no clear direction at this moment.. follow IB is chasing low...

Serba dinamik had replied to Bursa confirmation on appointment EY as independent reviewer has been pushed to reply fr KPMG... if KPMG did not act professional at current situation, more reason for Serba case to sue KPMG ?

Serba already replied to Bursa on appointment of independent review and pending reply fr KPMG on cooperation for review...
BOD could say i have done my job, waiting for KPMG replied....
I cant proceed without replied from KMPG ...So BOD said, not my problem ya..
if KPMG delay Serba reply then Serba could argue response fr KPMG same like how it handle the red flags with no reply even answers had been provided.. IMO.

KPMG and EY need to cooperate current situation, EY at the upper hand to decide who is right and who is wrong depends on info that it can access.
KPMG need to provide EY the details red flag findings to confirm that KPMG finding is true..
If KPMG not cooperate for certain info, EY may get it from Serba or other sources, with the different source, EY may get others findings which different from KPMG which proof Serba BOD is right... EY is ultimate decider for this situation... If KPMG not cooperate , then Serba could got more reasons and proof to sue KPMG on the findings... Seem like very complex situation...

EPF disposed 2 mil plus shares on 23 June, slow down in disposal...
It could be EPF slow down selling if the share price lower than certain limit but need to monitor for the next few days disposal qty..

The independent review for red flag findings ball was push back to KPM...
EY informed the board that they can act as the independent reviewer, need cooperation fr KPMG.

EY need black and white reply fr KPMG.
https://www.bursamalaysia.com/bm/market_information/announcements/company_announcement/announcement_details?ann_id=3170236

IB target price like moving target...
when share price going high, then IB TP chasing high and higher..
When share price going down, the TP also going down low and lower..

who can save serba at this moment...
State of Sarawak owned 3.38 %, if Karim can convince State of Sarawak to raised stake to above 5% or Petro S - Petro Sarawak purchase Serba shares and be the significant share holder... Serba need a white knight shareholder while waiting for assign E & Y as auditor...

Serba released QR report by end of this month to avoid shares suspended for trading at KLSE. Next due date for AR report is 31 Oct 2021...

Based on latest QR report revenue segment,

31/03/21

Business Segments:
O&M RM 1,252,539,000 (dropped 16.3%)
EPCC RM 99,315,000 (dropped 51,1%)
ICT RM 30,788,000 (dropped 72.8%)


31/12/20
O&M RM 1,497,066,000
EPCC RM 203,025,000
ICT RM 113,011,000

The O & M business revenue look steady but EPCC and ICT look suspicious sudden dropped.
If the O & M business is true with valid figure , Serba could has some value there after adjustment after audit but need to keep for a period of time till audit report is out .. short term price still drive by sentiment at this moment.

Too bad is a curse, Teluk Ramunia yard.
The jinx of the Teluk Ramunia yard
https://www.theedgemarkets.com/article/cover-story-jinx-teluk-ramunia-yard

If Bursa confirm suspend Serbak trading due to not able to release the AR and QR, then margin call selling could be triggered cause it take few months to have the audited report to come out..

Retailer speculators were supporting at this moment with expectation to rebound to earn huge money..

bottom line, Serba still have not appointed a independent auditor to verify the red flag by KPMG, why so difficult since KMPG has been asking them to do it so long ago..

Most likely this counter will be suspended due to not able to release QR and AR report by 30 June... left 3 and half trading days to unload you position to get your money back...

0.45 broke... more margin call selling soon...

EPF need more supporters to absorb its selling.
Funds are selling, the only supporter now is retailer speculators..
May be Karim and directors should buy more shares, hope that no margin call selling fr their side. Awang already kena margin call selling, if price go lower, Awang will have another round of margin call selling..

Serbak will suspend trading end of this month till KPMG & QR/AR release ?
What is the Bursa direction for Serbak case , still can trade after 30 June or suspend ?

“The RM7.7 billion worth of Abu Dhabi innovation hub project is currently at the engineering and design stage and construction work should commence in 2H21 [second half of 2021]. Piling work for the RM1.5 billion data centre project has started in April and construction work should accelerate in 2H21 as well.

https://www.theedgemarkets.com/article/serba-dinamiks-steady-trajectory-likely-continue-driven-strong-orderbook-replenishments-ict

In 2020, Serba Dinamik did not record any revenue for the EPC contract. Currently, the project is at the stages of concept master planning design and securing approval from the relevant Abu Dhabi authorities.

https://www.bursamalaysia.com/bm/market_information/announcements/company_announcement/announcement_details?ann_id=3168063

In 2020, Serba Dinamik did not record any revenue for the EPC contract. Currently, the project is at the stages of concept master planning design and securing approval from the relevant Abu Dhabi authorities.

https://www.bursamalaysia.com/bm/market_information/announcements/company_announcement/announcement_details?ann_id=3168063

The company said that work on the project will commence on 14 May 2020.

It added in the missive: “The project forms part of Block 7’s initiatives to create a global incubator for the advancement of innovators for the technology, property, financial as well as energy sectors, to be positioned as a new landmark for Abu Dhabi.”

Under the terms of the agreement, the company said that it would be “liable for damages in the event of its failure to comply with the Time for Completion with a maximum amount of 10% of the Contract Price”.

https://www.constructionweekonline.com/projects-and-tenders/264546-malaysias-serba-dinamik-bags-18bn-epc-deal-from-block-7-in-abu-dhabi

Seem like Serba should start the project commence in 14 May 2020 as per initial announcement.
Now Serba clarified project under concept master planning...
4yr complete, fail to completed will liable for damages 10% of contract.

Last Monday.
Close to 1 bil of shares transacted above RM 0.6.
This Monday below 0.6... Seem like quite a lot pp trapped at above RM 0.6

run...

Less than 10 days of share trading before serba trading suspension since serbak cant release QR result due to AR also not ready by end of this month ?...

Long time not heard about billions and millions contracts win fr Serbak...Suddenly contract win disappear..

UOB Kay Hian Research has retained its “hold” rating on Serba Dinamik with a new target price of 70 sen or 60.7% discount from RM1.78 previously with an entry price of 55 sen.

Quite accurate...

https://focusmalaysia.my/serba-dinamik-seeking-escape-route-from-the-rock-and-hard-place/

Last yr Awang disposed 200 mil shares of Serba at RM 1.6 -1.7... that is 100% value above IPO price (not counted on free serba warrant) and value at close to RM 320 mil cash and left 70+ mill serba shares on hand now... what is the reason causing him dispose the share with margin call since he has plenty of cash on hand after unloading 200 mils serba shares last yr...

on 1 June... 1.6 bil shares transacted at range 0.795 to 0.98 with closing price 0.835.
If based on 0.835 the 30% drop is 0.58
if based on 0.795 the 30% drop is 0.55

If margin call based on 30%, then below 0.6 could trigger more margin call beside Awang margin call selling..
Ready seller everyday for Serba at time moment.
EPF selling everyday
Awang Margin call Selling
KWAP selling too...
Others +++

Seem like Awang abandoned the sinking titanic ship and boarding a new cruise ship...
Selling Serba shares with reason of margin call seem not so convincing
Awang 跑的快好世界, Serba problem not his problem.

Awang Daud all smiles at Minetech; not splitting ways with Serba Dinamik
https://focusmalaysia.my/awang-daud-all-smiles-at-minetech-not-splitting-ways-with-serba-dinamik/

Minetech unit gets sub-contract job from Valsa Sarawak
https://www.theedgemarkets.com/article/minetech-unit-gets-subcontract-job-valsa-sarawak

Based on last selling pattern of Awang, he will continue to unload his shares till zero holdings..
Last year, he sold shares and Karim bought it.. For this round, he sold shares and retailers should be the main buyers for his shares...

Serba used to be announced contracts win regularly...
Long time never hear any contract win from oversea.
So coincidence with KPMG audit red flags issue, contracts win also reduce significantly.

Already 1 month KPMG requested Serba management to hire a independent third party auditor to verified the red flags ... How come still no further news confirm on the appointment of independent auditor... the longer the drag, the slower the report will be out... this counter left 20 days before trading suspension due to not able to release QR report due to AR report not available..

Everyday no news mean bad news due to run out of time....

Bond price continue under pressure too...

Trading at -70% below par, have Serba Dinamik’s bonds hit rock bottom?

https://focusmalaysia.my/opinion/trading-at-70-below-par-have-serba-dinamiks-bonds-hit-rock-bottom/

Serba Bond rating downgrade... Bankers will soon or already started chat with Serba on the loan and borrowing to protect their money... Interest rate charge to Serba will up due to higher risk.
Serba will run out of time if the problem of auditing not settle. Buy back shares fr market will not help current Serba situation, market need a solution for the problem asap...

Fitch downgrades Serba Dinamik to 'B-', places it on Rating Watch Negative
https://www.theedgemarkets.com/article/fitch-downgrades-serba-dinamik-b-places-it-rating-watch-negative

S&P downgrades Serba Dinamik credit rating to 'B-' on reduced funding access
https://www.theedgemarkets.com/article/sp-downgrades-serba-dinamik-credit-rating-b-reduced-funding-access

No news is a bad news for Serba, 1 week has passed and no solution for audit yet.
Serba required to announce the QR report by end of this month... if missed the date line than it will stop trading at KLSE till QR released ?
Based on timeline of 3 weeks to go , i dont think the AR auditing will complete by end of this month and Serba also cant release QR due to AR report not yet completed...
Seem like Serba left 3 weeks for trading before suspension till Auditing report out.. IMO.
For the next 3 weeks , most likely the serba trading is short term, buy in and sell out very fast...

Banks could ask serba to pay loan early before other Bonds expired date...

Difficult for Serba dinamik to access bond market in near term...

Serba Dinamik has been downgraded by two notches to B- from B+ by S&P this morning. The rating agency cited “reduced funding access” as the reason for the downgrade and placed the Malaysian corporate on CreditWatch Negative. S&P added that the company faces increased refinancing risk on its dollar sukuk due May 2022 on the back of “weakened market access due to a pending special independent review.” It added, “In our opinion, efforts to restore capital providers’ confidence in Serba Dinamik’s operations are likely to take months, even if the company completes the independent review. With less than 12 months from the May 2022 maturity of its sukuk, the limited time frame to both refinance and complete the independent review creates significant uncertainty.”

https://bondevalue.com/news/serba-dinamik-downgraded-to-b-by-sp-on-reduced-funding-access/

Any idea when Serbadk will announce the multi billions new project win with EFIRE CAPITAL HOLDINGS LIMITED. Hope that this could be another boost for the share price..

Last yr Serbadk announced RM 7.7 bil project with Block 7 investment LLC
Serbadk also announced RM 1.4 bil project with Future Digital Data Systems L.L.C
I expected Serbadk will announce another billions project with EFIRE CAPITAL HOLDINGS LIMITED.

Since all three Companies has the same boss, same contact no. at Dubai. EFire capital holdings should look for Serbadk for their expansion plan...

Serbadk major customers hot line no. +971 2 550 4023 Abu Dhabi, UAE
May be is all of them use the same call centre that why with same contact no...

http://www.block7investments.com/
https://www.fdds.ae/
https://efirecapital.com/contact/

Damage has been done, only see how bad is the situation & impact, and chances of survive with this scandal...

SCIB is more steady compare to other even though involve in the similar problem as Serbak for oversea projects that may not exist. It just started and amount involved not that huge yet.

Cash on hand and recent private placement put it at better net cash position with low debt.

At end-December 2020, SCIB had RM58.12 million in cash and total borrowings of RM38.95 million, giving it net cash of RM19.16 million. Its gross gearing stood at 0.27 times.

https://www.theedgemarkets.com/article/scib-plans-another-private-placement

SCIB to raise up to RM227.8m via private placement

https://www.theedgemarkets.com/article/scib-raise-rm2278m-private-placement

Total cash 58.12 mil + 227.8 mil cash should be good for SCIB.

Further more, SCIB recent won projects mostly local project at more reasonable contract value and it is local companies...

If SCIB execute local contracts well, it should be fine for it...This could be reason Mr Karim adding more shares at SCIB where he holding highest % compare to the rest...

PETALING JAYA: Sarawak Consolidated Industries Bhd’s wholly-owned subsidiary SCIB International (Labuan) Ltd has bagged three engineering, procurement, construction and commissioning (EPCC) contracts worth US$200.45 million (RM864.54 million).

The three contracts is for the 20 units of villa in Muscat, Oman awarded by Revenue International LLC for the period between April 5, 2020 to April 4, 2021; two units of service centres in Al Khor, Qatar awarded by Sky View Trading and Contracting WLL for the period between April 4, 2020 to April 3, 2021; and the construction, completion and maintenance of a five-storey building, boundary wall, guardhouse and car parking in Doha, Qatar from March 30, 2020 and March 31, 2021.

https://www.thesundaily.my/business/sarawak-consolidated-expands-qatar-oman-footprint-with-3-contracts-EJ2209024

All contracts need to complete within 1 yr but i dont see any billing in the QR so far..
Simple contract but value at RM 864 mil...

Avoid any counter under KPMG auditor...
it could a time bomb in future....

Life is not easy for Serbak for the coming days and months.

Last Friday received Query from Bursa...
Special Independent Review
Reply to Query

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3162085

Today is SC initiated investigation on Serbak...

Malaysian regulator investigates oil firm Serba Dinamik
https://www.channelnewsasia.com/news/business/malaysian-regulator-investigates-oil-firm-serba-dinamik-14919980

Any idea the BLOCK 7 INVESTMENTS LLC as per Serba Dinamik RM 7.7 bil project in Abu Dhabi is same as link company below.

BLOCK 7 INVESTMENTS LLC

Between 2020-12-23 and 2021-03-09
Change of status from 'Active' to 'Dissolved'

https://opencorporates.com/companies/us_ok/3512387842/events

Serba Dinamik International Ltd. (“SDIL”) has accepted the letter of award from US-based Block 7 Investments L.L.C. for the four-year project. The Block 7 is located in the Abu Dhabi Advanced Industries District (ICAD V) in the southern western part of Abu Dhabi city

https://e-serbadk.com/portfolio/innovation-hub-abu-dhabi/

One Question on the KPMG auditors.. are they handle this case professionally ?

Raised a red flag audit list to management team on 3 May then Serbak response within 3 days.
After that no response from KPMG or follow up on the audit list red flag.

Till 25 May , the company force to take new approach to verify the red flag by KPMG.

No conclusion made by auditor on the audit report... Found issues , raised red flag, customer reply, than no further response or follow up.

Audit report need a conclusion not just open audit with issues no closed with no conclusion, - qualified , unqualified opinion, adverse or disclaimer of opinion or others and recommendation...

Serbak raised capital from market fr IPO till 2021..closed to RM 2 bil.

IPO 389,400,000 shares at RM 1.5
2018 private placement 133,500,000 shares at RM 3,2
2020 private placement 306,507,000 shares at RM 1.49
2021 Private placement 336,830,000 shares at RM 1.51

As per 2019 serbak annual report on VDP as below. Seem like it has been there at Serbak...12 vendors with RM 2 bil awarded to them.. how come KPMG raised this issue in 2020 report and 6 suppliers with RM 481 mil transaction...You can see this statement at 2019 annual report...


We will continue to create value in the economies that we
operate in. In Malaysia, through our Vendor Development
Programme ("VDP"), we are committed to nurture and
develop small and medium engineering companies to be
competitive locally and be global players. To date, we have
12 vendors registered under our VDP. Our VDP vendors will
also benefit our business as they form part of our supply and
value-added chain. Since the commencement of our VDP in
mid-June 2016, we have awarded more than RM2.0 billion
worth of contracts to our vendors.

Impact of the write off...

1.9b billion receivable and KPMG question RM 652 mil...the rest of amount seem like normal.
Worst case - total write off this amount...

Private placement for the past 1 yr.

2020 RM 456 mil
2021 RM 508 mil

Total RM 964 mil....closed to RM 1 bil..

Financially, in short term should be no problem to cover the impact of the Worst case scenario.

Everything normalize back to 2018 FY financial figure..

How much money raised by Serba fr private placement for the past 1 yr..

2020 RM 456 mil
2021 RM 508 mil

Total RM 964 mil....closed to RM 1 bil..

http://serbadinamik.listedcompany.com/news.html/id/775429

http://serbadinamik.listedcompany.com/news.html/id/816239

Serba Dinamik FY 20 Annual Financial report.

FY 20 sales RM 6 bil and KPMG raised concern on RM 2.32 bil sales (38% of the revenue)
FY20 Inventory RM 1.66 bil and KPMG raised concern on RM 569 mil (34%)
FY20 Trade receivable RM 1.86bil and KPMG raised concern on RM 652 mil (35%)

Seem like about 35% of figure is questionable by KPMG.

https://www.theedgemarkets.com/article/kpmg-raised-audit-issues-transactions-involving-over-rm3-billion-says-serba-dinamik