Yer

That exactly what it is ..another plunge is expected

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@Enilec Mak U guys talked as if KPMG only has one auditor. It is an international firm with hundreds of partners who does auditing their entire career. You think they cannot resolve simple problems like wrong address, email etc.

Common sense tell you that is not the case. For KPMG, an accredited international audit firm to resist signing the accounts can only mean one thing and one thing only.

The books are cooked and KPMG found out. Obviously KPMG would have given Serba time to explain and justify before bringing it to the independent directors.

For Karim to pretend to be ignorant and say KPMG never talked to management and go straight to independent directors is a blatant RED FLAG that he is lying through his teeth.

And when someone at his level lies on something like this...you know the shit runs deep

Yer....as solid as a rock but the professionals leave no rock unturned......

@michaelwong With this type of closing today probably might triggered another round of sell down ! No power and this in return to cos the company value to be wipe out in such a short time span

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You said no company would keep dropping ....well....this is the good example.......
BTW,losers get agitated very quickly...guess who?

The more you collect and or average ,the deeper the hole you are digging until you get buried .....

The winner takes it all and the loser stands small.......

Old news but new action is enforcing.....

Are you insinuating that there is a conspiracy theory and collusion behind all parties concerned?

Unless there is a breakthrough, it is unlikely to be a bright side of it.......

@Michael Yeo tomorrow another limit-down. Securities Commission is going indepth into Serbadk. https://www.theedgemarkets.com/article/newsbreak-sc-investigates-dynamics-serba-dinamiks-accounting

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With LD,another Opportunity or another disaster for you since you say no company will keep dropping?. However,the way it goes,it appears to be so.......

More Drop, more average.further drop,further average and so on and so forth until it is at the bottom.....

What the auditors want is the audit evidence to be obtained directly from the customers,not to be arranged by the company. Direct evidence is more reliable than the indirect evidence.

If the auditors are not satisfied with the evidence,they can resort to independent committees for assistance.

There is nothing wrong with their conduct of audit with professionalism.they are very well versed with the operations of the company since 2013..KPMG might have been tolerable in the past but sky is a limit to be unbearable to them now....now or never...

Madcow...how is your AT? Remember our bet. On AT.

You lost the bet.the stake was you never would appear on AT forum..

Now you want to have the same bet on unrest?

Fundamental. dark clouds are not cleared, no rebound is expected. High volitity is expected but one sided only.....down....

Who is greedy now ? And who is fearful now?

SD mgt is greedy now,investors are fearful which fits in well with the context of WB....

I am who I am.....

SD is even more fishy.if you are still holding the shares ,you are done..

Soon it will be the same price as ucrest if not worse....

SD is half dead now.......the more you buy ,the faster you get buried..

WTH

Some fellows in this forum are really blinded to take negative news as positive news

Basically, all the news released is shocking negative news surronding ucrest.....I cant say further anymore. More and more shocking news from Russia is expected...........

Why are there so many diehards keep denying the factual irregularities and keep being ignorant as if the company would be rebound to its previous lustre.

Now then the irregularities have been exposed.no matter how many independent reviews are conducted,the effect of the irregularities is pernicious.....

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

SAGE
SAGE is the principal advisory group to WHO for vaccines and immunization. It is charged with advising WHO on overall global policies and strategies, ranging from vaccines and immunization technology, research and development, to delivery of immunization and its linkages with other health interventions. SAGE is concerned not just with childhood vaccines and immunization, but all vaccine-preventable diseases.

SAGE assesses evidence on safety, efficacy, effectiveness, impact and programmatic suitability, considering both individual and public health impact. SAGE Interim recommendations for Emergency Use Listing (EUL )products provide guidance for national vaccination policy makers.

These recommendations are updated as additional evidence becomes available and as there are changes to the epidemiology of disease and the availability of additional vaccines and other disease control interventions.

SAGE has issued recommendations on
Pfizer (8 January 2021),
Moderna (25 January 2021),
AstraZeneca (21 April 2021),
Janssen COVID (17 March 2021) ,
Sinopharm (7 May 2021) and recently
Sinovac-CoronaVac (1 June 2021).

Based on the above recommendations,WHO has validated them accordingly for interim Emergency use

As at to date with regret,sputnik V has yet to be recommended by SAGE and to be validated and approved by WHO. Isn't it pathetic?

Why Ucrest has signed to manage the production of sputnik V for which no demand except USSR,india( temporary use until india is able to catch up with its own production) ,North Korea and other poor former USSR breakaway unions?

Pathetic and more pathetic. Having read the above ,you should know what to do next.....

Before you speak the shit of your mouth, pl get your facts right

Do you think I am BS? I suggest you go to verify my statement in WHO like the auditors

Verifying is believing....

Sputnik v is not recognised and approved as the vaccine for emergency use by WHO for lack of transparency in the tests trial ......too bad

Shocking news

We are not talking the law case here where if you are found guilty in the high court, you can appeal all the way to appeal court and federal court.

However, the company has already been found in the wrong with irregularities by KPMG. Even another new auditors are substituted for the old auditors, it is of no avail. In the eyes and view of the investors in general,the company is still haunted with the irregularities....

Fishy

1.US-based Block 7 LLC (principal)related to serba as JV party
2.serba awarded to as main contractor
3.subcontractors set up in foreign jurisdiction are purportedly related to serba

all the three parties appear to be related one way or the other ,you can see why the external auditors are feeling uncomfortable with it.

when all the parties are controlled and or influenced by one key person, the magic will do wonder....

Fishy

a RM7.7 billion contract for engineering, procurement and construction of innovation hub, academic campus, related facilities and infrastructure in Abu Dhabi awarded to serba( main contractor) by Block 7 Investments (principal in foreign jurisdiction) in April 2020

1.who actually controls Block 7?
2.who are the subcontractors? Probably set up in foreign jurisdiction.

A tripartite agreement is created whereby the principal to pay directly to sub-contractors.

If all the three companies are controlled by him,you can see why the external auditors are feeling uncomfortable with it........

Some forum contributors are of the view that the enquiries made by KPMG are ridiculous but I don't think so.

KPMG has been fair snd reasonable to ask those fundamental questions.if the explanations or evidence provided by the company are not fair and reasonable,how would KPMG be able to give a true and fair view of the state of affairs of the company

For instance ,KPMG would like to get direct confirmation on the major receivables from the customers. Only one out of 7 responded. Despite efforts made ,still no response. Serba mgt said they would arrange meeting with the customers and the auditors.such arrangement is not considered to be " direct evidence " but " indirect evidence" to the auditors in an " arranged manner".

Based on the above alone,how would you expect the external auditors to be comfortable with the the veracity not to mention even accuracy of the balances.?

Referring to the tripartite agreement between the principal, main contractor and sub contractor iwhere the sub contractor can demand payment for work done directly from the principal to avoid non-payment from main contractors,it is a commonplace and there is nothing wrong with such arrangement in so far as the such payment can be verified for work done and certified by main contractor.

On the above point,the auditors challenged the difficulty in recognition of revenue and costs does not arise but verification of payment is another matter.

In a nutshell, the external auditors are not totally unreasonable to raise the "fishy" issues.

Basically, sales and receivables are purportedly fictitious while paysbles are purportedly genuine but to whose pocket remains questionable.

In a perfect world,profit should be equal to net cashflows.

assuming your sale is 100m and your cost is 80m,you have made a nice profit of 20m..20% margin.

Assuming your receivables pay you 100m and you pay your payables of 80m,you have a nice cashflow of 20m in your kitty.

Assuming your receivables pay you nothing but you have paid your payables of 80m,you have negative cash flow of -80m

Now then how are you going to fund your payable of 80m. Keep on funding your payables using borrowings ,debentures ,PP.

That explains why the gearing is so high and cashflows are so ridden strained though the company is reported to make profit on paper giving a nice share capitalisation on paper

If the impairment of 100m is provided against the receivables, the company has actually made a loss of 80m.

The above is even more complicated with customers and suppliers are involved in tax free jurisdictions..

The external auditors are fair and reasonable to raise the areas of concerns on sales transaction receivables and payables. The rating agent is not blinded to it and acted in a swift manner.No matter how the independent reviews are done ,the said issues are hard to be proven beyond reasonable doubts.

They got nothing to lose by supporting the shares.

Basically they have killed two birds with one stone,1st to stop further bleeding of the fall and 2nd to multiply their wealth in time to come when the share is restored to its realistic level......

Positive

The independent non executive directors have clarified that the composition of membership of the established Independent Committee has no representation from the Management to ensure its independence.

The above has quashed the speculation and doubts over the independent status of the independent Committee.

Based on the above and other Positive notes,the harbinger of plunge is not expected in the immediate future.....

Limit up is possible...but one thing for sure the price will be restored to a more steady comfortable level.....

Cos receivables will pay you later....for instance 6 months later or longer......which will affect your cashinflows....

General Bank loan can be used to finance working capital.....no problem.while specific bank loan can't...but used for acquisition of fixed assets for instance.

One iceberg alone can not sink the titanic .likewise, the recent disposal of kwap is not expected to dent its pocket.biz is as usual.

Based on the circumstances surrounding the withdrawal, further plunge is unlikely to happen,instead a more stable price level is expected.....

It is believed that all the substantial shareholders have consulted one another not to take a drastic move of immediate exodus to the detriment to their portfolios.

It is believed they must have direct consultation with Karim as a result of which efforts been made to have the special notice withdrawn

It is believed that Karim has convinced other substantial shareholders not to exit at this time round with his re-assurance of practice of good corporate governance.

He might have taken a major step to persuade datuk to withdraw to save for the day..Based on this ,I doubt there would be exodus from tomorrow onwards.....

Kwap was just testing the water to see who the next big players were to follow them but too bad,kwap ended up as a lone ranger while others remain undisturbed.

I doubt kwap would continue to dump tomorrow given the fact that Serba will be back as big as ever.....

Who is the boss? Not the top mgt,not the auditors .Guess who?

One moment you fire the villain and the next moment you reinstate the angel........its very dramatic and entertaining.....

Somehow ,I think there could be a collusion among everyone involved and we,the investors are being fooled around like a merry-go-round......

Mabel has been defensive of her baby.....which is understandable now then she has regained her confidence after freaking out for 3 days....

At least market is relieved.the moral of the story is not to confront auditors but to cooperate with them in tandem

At least KPMG is not removed and .practice of good governance is upheld....

Limit up is expected tomorrow.......the 2nd largest shareholders bites the dust.....

irregularities exist every where and then in every company

.As long as the irregularities can be verified and explanations given by the Mgt are justifiable and reasonable. Irregularities can be regularized.

madcow...... 50 in your fantasy ....