I request all i3 members to download the powerpoint presentation showing KPMG query & SERBA's reply and judge yourself who will be in the right eventually.

https://www.facebook.com/groups/595333804730641/permalink/831207167809969/

this whole suspicion was triggered by Jonathan Choi aka ChoivoCapital which influenced his friends who are likely the auditors of KPMG dealing with SD.....when you see things in an irrational bias - suspicion..everything will look the way you want it..

I think someone should post the powerpoint presentation in i3....

SD will use a labourer's address in Bahrain to deal is it? what kind of common sense this auditors have liao...

this bunch of auditors who has no practical business experience seem to be on hyper mode to suspect everything ...and they think everything can be verified just by looking at the numbers in financial statements...

what has happen between KPMG and SD...is exactly how Jonathan Choi debates with Philip...

i have a strong suspicion that KPMG auditor is one of Jon's friends as an ex-auditor...this explains why he can convincingly attack SD during his interview on 19th May much ahead of this issue coming to the media spotlight....

really nerd auditors exactly like Jon

Thanks for sharing ALANCHEE, everything mentioned there is exactly as i had imagined...

the auditors brain is exactly like Jonathan choi's...suspect things like a fagg*t..

Posted by ALANCHEE78 > Jun 6, 2021 7:54 PM | Report Abuse

https://www.facebook.com/groups/595333804730641/permalink/831207167809969/

Thanks for sharing ALANCHEE, everything mentioned there is exactly as i had imagined...

the auditors brain is exactly like Jonathan choi's...suspect things like a fagg*t..

Posted by ALANCHEE78 > Jun 6, 2021 7:54 PM | Report Abuse

https://www.facebook.com/groups/595333804730641/permalink/831207167809969/

any services accrued to particular purchase order which are not completed (i.e ready for Invoicing), will be book under work in progress (WIP), be it the services taken place at SD's office, or at client's site..... as long as its related to the purchase order, it has no choice but to sit as inventory

e.g, you spend 9 days for quarantine at the hotel in Qatar before executing job, and 200 days at Qatargas site, and return to Sarawak with another 10 days quarantine, and yet your accounts have not invoiced Qtargas, all the cost incurred for travelling, board & lodging will still be sitting as inventory...



Posted by Mikecyc > Jun 6, 2021 7:28 PM | Report Abuse

Haha WIP work in progress parts is belong to Supplier .. not delivered to site yet ...

Root cause of all issues, c19

- improper docs both from SD and clients causing suspicion and inaccessibility for verification, due to work from home adaptation in middle east region
- high inventory ( in the form of intangible WIP not GIT) due to excessive quarantine duration of service engineer, delaying invoicing

Post removed.Why?

https://www.adports.ae/new-820000-square-metre-hub-to-foster-research-and-innovation-in-abu-dhabi/

@sslee, the INNOVATION HUB of 7.7 Billion is real, why doubt their EPCC dealing with MNC....

https://hlbabudhabi.com/abu-dhabi-roots-for-a-new-innovation-hub/

https://focusmalaysia.my/markets/serba-dinamik-fights-to-clear-its-name-amid-mounting-odds/

At this juncture, how many investors would actually take a step back to celebrate the company’s strong presence in 20 countries, its workforce of 1,766 across all segments of its operations and its major project breakthroughs that have roped in a vendor and supplier base totalling 770 companies?

1766 workforce with 770 companies.... all also lingkup kah?

LOL.....

extract from focusm :
......................

"To be fair to both parties, the accounting issues which surfaced in Serba Dinamik’s FY2020 audit had very much been exacerbated by difficulties in completing the audit process due to movement restrictions across all its domestic and overseas operations owing to the impact of COVID-19."

can you suppress Karim who had proven time & time again that he can secure fantastic contracts...

like the Innovation hub (which is certainly real) and the exceptional order book he had received for SCIB & Kpower which is all clearly visible from large MNC who would not dispute the authenticity....

Choo bee bee's dsonic had survived the highest level corruption...Karim will too even if all of KPMG assertions is true...

walao eh...my deeply disturbing messages deleted again. Will paste again and again occasionally:

lets assume the 2.3b paid is from mystery donator.....
.............................

would that mean the remaining revenue of of 7 billion is also fake?

would the services they had been offering in Qatar at 35% of revenue for years be fake too?

would the service to Petronas fake too?

the question is no longer KPMG claims is valid or not...but how cheap we want to buy

no matter how you twist & turn , you can't hide from this simple truth

investing is all about risk vs return


Posted by JohnFook > Jun 6, 2021 1:14 PM | Report Abuse

Simple issue ..got customer or no customer?
Note : auditor is smart

if you have a good business knowledge on how as a contractor you will execute a repair & maintenance job involving multiple suncontractors and your own work force....the above explanation on high inventory & long due period receivables should make sense

serba's suppliers is their own work force & multiple subcontracted service providers.....they cannot afford to delay paying their salary & subcontractors, independent to accomplishing the required task at serba's clients site (where they may have certain performance obligation as a whole)

as the services incur it has to sit on Work In Progress (WIP) under inventory

Serba cannot maintain the same payment terms ( & payment due period) with subcons the way they have with their long term clients...


Posted by joyvest > Jun 5, 2021 11:01 PM | Report Abuse

Basically,suppliers' invoices have been raised for the inventory for which they have been paid. but to whom have they been paid?...u know better.

The delivery of inventory has yet to be made on site which would probably never occur..its merely a show of circus

when you conduct services and the tasks is yet to be completed, it cannot be invoiced to the customer. This duration of service will be booked as WIP (under inventory)...

under covid situation which requires quarantine requirement for every entry and exit to a different country...this can be expected to rise

Posted by Sslee > Jun 5, 2021 10:45 PM | Report Abuse

The problems is why Serba keep so high inventories RM 1.667 billion?

thanks Mikecyc, i can see why serba may have difficulty showing this...when its placed at all corners of the world

Posted by Mikecyc > Jun 5, 2021 10:33 PM | Report Abuse

Haha on site material balances if this is semi finished goods is not install is belong to supplier ... if the project is delayed .. customer may consider to agree to accept as delivered with duo site inventories count for acceptance ...

yup....

so only reason materials on site are not invoiced is that they are equipment & tools not meant for client but to execute the maintenance service provided by serba...

@sslee, on site material balances if defined as assets, then it has not been invoiced....its owned by serba then

definition of cuckoo:
....................

spending time here commenting without an ulterior motive to buy cheaper or not having any stakes on serba related stocks

i hope i3lurker & charlest are at least on former category

exchange on custody of goods happens when seller invoices...not based on P.O or shipment

invoice is done when goods is defined delivered

what is delivered is defined by the Incoterms of the contract


Posted by Sslee > Jun 5, 2021 10:11 PM | Report Abuse

To me when customer received any purchased and signed the DO mean good already sold.

Normally material on shipment is considered as inventories on shipment.

sifu i3 lurker...pls clarify what u mean by material balances on site....

@sslee, what do you understand on onsite material balances Vs property plant & equipment (PPE)

PPE kah? who thought of PPE.....that cost peanuts le....

each service engineers will have their own tools and most will be at the O&G plants workshop dedicated for these serba engineers stationed abroad....

if you are deriving 5b revenue , this level of working assets seems absolutely normal

these are the advanced tools used by the service engineers worldwide lor....remember the revenue generated by O&M yearly exceeds 5 billion..

the service & maintenance are not done with bare hands la...for christ sake!

and yes, serba can also impair the unverifiable assets if at all needed....i doubt that is the case

@smoking, exactly ...this is what i have been trying to put across...market reacted as if the 2.3b is receivables...LOL!

Qatar revenue is still the major portion from middle east...and i see no issues highlighted here by KPMG including UAE second largest

seeing the above numbers, there is really only one big issue... the transaction of 2.3 b...rest all are relatively small figures

since its a transaction -its money paid ...and all KPMG wants is to verify the identity of the entity making this payment..

really does not look susah le....as serba is not new to this business

and certainly serba does not deserve this level share price punishment

in very concise representation, all of of KPMG concern is highlighted by the below numbers:

https://assets.theedgemarkets.com/pictures/serba-dinamik-audit-issue-tablefrmAin-for-Adam-KPMG-second-late-night-story-Fri28052021.png

we start fresh with the core issues summarized on below article by the edge

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

even i3lurker got triggered by the arguments...LOL! need to keep posting the same info here then...

ok you carry one accusing and swearing anything you want...knowing your nature

ok...you hentam whatever u want...i will just ignore if adds nothing new info on the business

check out my comments on MMC earlier...but really i dont want to brag and rather remain humble..

anyway i will try track back to the business arguments

ha hah ha...omg...cool down mate...

sifu charlest...you bringing SCIB here...has zero effects on me...seriously dont waste your time...only makes you look naive...

focus on serba & kpmg arguments man...

walao...many resorted to personal attack already....LOL!

be composed and stay focused on the arguments la...guess its too compelling to refute...LOL!

76% revenue is sustainable and real....market has discounted 2/3 from 2.40 to 0.76.....for the 24% which has yet to be ascertain fake?

will see..will see... i can see the more it goes down the more naysayers will get excited...

excitement is already at explosive level looks like..LOL!

bear in mind that serba is not trading at 2.40 as it usually does precivid at current oil price and recovery optimism

Posted by alenac > Jun 5, 2021 8:20 PM | Report Abuse

Yes, have an opened mind but bear in mind that to the authorities small punters lurking in i3i are of no consequences or rather are not of concerns to SC, KLSE and SSM from experiences on the collapse of many companies in the past. But foreign investors or funds are well respected, their perception of the capital markets determine the robustness of the market in Malaysia.

Serbak issues are actually very basic, to determine whether the group current assets are genuine and can be resolved at lower management level. But erupted at board level that raise a lot of doubt.

over the weekend probably market will ponder a lot on their over reaction..

O&G players are well known be it from any corner in the world (cant be fake)...surely no issues on invoice or stamps having co. reg. number...

76% revenue from O&G should certainly be verifiable... even rest is non existent, serba dirt cheap already

https://themalaysianreserve.com/2020/12/04/serba-dinamik-aims-55-revenue-contribution-from-non-og-business/

The Most Common Cognitive Bias

https://www.youtube.com/watch?v=vKA4w2O61Xo

1MDB has a lot of influence on cognitive bias here.....from KPMG, to analyst, the Edge and to retailers etc...

we try to imagine a pattern we have already seen and fit it there
................................................................

only when you have the whole - deeper picture or information you will be surprised another different pattern exist which can explain the same observation

have an open mind guys...its good for both naysayers & promoters

not only rotan...badly sodomized already