one of best bank QR. Other banks mostly flat.

It is not possible to issue unqualified audit report this year because opening balance is qualified (or unaudited since it was a disclaimer opinion), which has been bearing to 2022 results. They got their opening inventories unverified.
Cost of good sold = opening stock + purchases - closing stock
___________________________
Huangbk72

https://www.theedgemarkets.com/article/serba-dinamik-received-oneyear-...

2 conditions pops out which I dont think SD will fulfill

1) The licence stipulates that Serba Dinamik shall, within one year from the effective date, submit its audited financial statements for the financial year-end June 30, 2022, duly accompanied by the auditor’s unqualified opinion.

Interesting to see how would the AGM be conducted? Do they allow verbal Q&A? Only chat Q&A and selectively choose question to answer? Did MSWG manage to buy a tiny lot of share before suspension or anyone can proxy MSWG to raise questions to SD?

Can I buy 100 units to participate in the AGM? interesting.....

6 quarters cumulative
Unaudited revenue in QR RM853mil
Audited revenue in audited acc RM199mil
Variance RM654mil

Superb.

Potentially sign off qualified accounts. Time passed 30 June by the time Nexia takes over the audit. So cannot audit projects/site materials as of 30 June. SD may say that is correct, KPMG punya pasal, resulted in they cannot get another auditor in time to audit. So no one is wrong, but KPMG.

even until 31 Dec, with 2 big 4 firms raised suspicious on the books, do you think Nexia will sign off a clean report?
If SB goes burst after the clean report, get ready RMxxx million for suit from shareholders in return after earning the few hundreds thousands of audit fee.

The Edge week of 29 Nov to 5 Dec

existing employees may be hoped to expose force labour ended up losing job?

Rating agencies and your bond refinancing, if any waiting for your audited accounts.

Even if with time until Dec 2021, still can have clean audit report? Or by then another story pop up, auditor don't know their business or legal suit again?

plaintiff is NOT HAPPY with the findings [made by E&Y]
--------------------------------------------------------------------------------

Similarly, Gopal in his submission to object the adjournment and interim injunction said Serba Dinamik had been working with E&Y for four months from July to October.

“Prior to this, they did not make it an issue that it is necessary for E&Y to be an auditor with the Audit Oversight Board. The issue of not being registered did not arise.

“An inference from this [legal] action is that the plaintiff is not happy with the findings [made by E&Y] and we similarly object to an adjournment. The injunction they (Serba Dinamik) sought against us from releasing the findings even to the regulatory statutory bodies could be against the scope agreed upon and what our obligations are,” Gopal said.

https://www.theedgemarkets.com/article/court-dismisses-serba-dinamiks-application-ad-interim-injunction-against-bursa-and-ey

MAIN MARKET
LISTING REQUIREMENTS

PART H – OTHERS
2.23 Instructions or directives issued by the Exchange
(1) The Exchange may, from time to time, issue any instruction or directive to or impose any
condition on an applicant, a listed issuer, a management company, a trustee, a trusteemanager its directors, officers, employees, advisers or any other person to whom these
Requirements are directed and such person as aforesaid must comply with the said
instruction, directive or condition and within such time as may be specified by the Exchange.
(2) Where the Exchange has issued any instruction or directive or imposed any condition referred
to in subparagraph (1) above, the Exchange has all the rights and powers to do all acts
necessary to enforce and give effect to the instruction, directive or condition.

2.24 Special auditor
(1) Where the Exchange is of the opinion that a breach of these Requirements may have
occurred and the appointment of a special auditor is necessary, the Exchange may instruct
the listed issuer to appoint a special auditor to review or investigate the affairs of the listed
issuer, any of its subsidiaries or both, as the Exchange may direct. Any cost incurred as a
result of the appointment of the special auditor must be borne by the listed issuer.

(2) For the purpose of this paragraph, a special auditor means any auditor other than –
(a) the statutory auditor of the listed issuer appointed pursuant to the Companies Act or
in relation to a foreign corporation, pursuant to the relevant laws of the place of
incorporation; or
(b) in relation to a collective investment scheme, the auditor appointed to audit and report
on the financial statements of the collective investment scheme annually.


https://www.bursamalaysia.com/sites/5bb54be15f36ca0af339077a/content_entry5ce3b50239fba2627b2864be/5ce3b6655b711a12b4a1d0ab/files/listing_requirement_main_market_consolidated_02Jan18.pdf?1570701418

https://www.theedgemarkets.com/article/barakah-offshores-auditor-issues-qualified-opinion-fy21-financial-accounts

By the time the new auditor confirmed and onboard in Aug 2021, the year-end 30 Jun 2021 already went past. Do you think the auditors can verify the existence of materials on site back then without physical inspection/stockcount and dare to say no issue, we "checked" the materials on site/inventories?

Or qualified audit report is likely the case? Qualified report means PN17. Interesting to see how powerful is the new auditors.

Silent on pre-conditions and nothing mentioning cooperation from KPMG.
May be Bursa ok with EY to check based on all avenue it can get without KPMG.

The appointment of EY is also made under the directive from Bursa Malaysia pursuant to paragraphs 2.23 and 2.24 of the Main Market Listing Requirements of Bursa Malaysia (“the Directive”).

Very good points. Now the IR turns into under directive of Bursa instead of KPMG request.
Bursa invokes power under listing rules:

2.24 Special auditor
(1) Where the Exchange is of the opinion that a breach of these Requirements may have
occurred and the appointment of a special auditor is necessary, the Exchange may instruct
the listed issuer to appoint a special auditor to review or investigate the affairs of the listed
issuer, any of its subsidiaries or both, as the Exchange may direct.
-----------------------------------------------------
treasurehunt Good points. Why an independent review is needed since KPMG has resigned.Who will sign off the audited account after the independent review ?

Posted by RISK8888 > Jun 28, 2021 11:25 PM | Report Abuse

Now the situation become very messy, independent review request by KPMG. But already resign, so why still need? The review mainly to support KPMG to finalise 2020 account. But already resign. So the review macam no purpose dy. are they suppose to appoint new auditor to finalise 2020 account? Instead of doing the review??? Wa...very messy ler....

2.23 Instructions or directives issued by the Exchange
(1) The Exchange may, from time to time, issue any instruction or directive to or impose any
condition on an applicant, a listed issuer, a management company, a trustee, a trusteemanager its directors, officers, employees, advisers or any other person to whom these
Requirements are directed and such person as aforesaid must comply with the said
instruction, directive or condition and within such time as may be specified by the Exchange.
(2) Where the Exchange has issued any instruction or directive or imposed any condition referred
to in subparagraph (1) above, the Exchange has all the rights and powers to do all acts
necessary to enforce and give effect to the instruction, directive or condition.

2.24 Special auditor
(1) Where the Exchange is of the opinion that a breach of these Requirements may have
occurred and the appointment of a special auditor is necessary, the Exchange may instruct
the listed issuer to appoint a special auditor to review or investigate the affairs of the listed
issuer, any of its subsidiaries or both, as the Exchange may direct. Any cost incurred as a
result of the appointment of the special auditor must be borne by the listed issuer.

No idea how suing the mid-way auditors can put you into business as usual?

Even independent review becomes like investigative audit. you have luxury to set so many conditions for a review.

Imagine, can a new statutory auditor set conditions for accepting as auditor with supervision of SC & Bursa?

Consequences of listening to lawyer? After legal advice, lawyer will say taking your instruction to sue kp$g, my job is to sue. audit completion not in my job scope.

------------------------------
kinuxian It's getting more complicated as KPMG was sue by Serba while Bursa gave a time limit till Friday. Will KPMG gave such access to their competitor and some info might against them in courts. There is a saying never burn the bridge in corporate world, but serba chairman did that in his first PC.

This sum up well on the announcement
--------------------------------------------

Nam Uni: It is EY polite way of saying no, thank you.

I expect it will be rejected by kp&g due to resigned (no more relationship), confidential and suit case (how to give hold harmless?)

**********

EY informed the board that they can act as the independent reviewer, provided, as agreed from the onset , so as to ensure that the work can be performed independently and objectively for the benefits of all stakeholders, that:

1. EY need to have full and unfettered access to KPMG PLT for information and confirmation for the purpose of analysing the transactions and concerns highlighted;

However, in light of the recent resignation of KPMG PLT as the Company’s external auditors, EY required assurance that the above requirements remain in place prior to executing the engagement letter and commencing the review, including a written confirmation from KPMG PLT that co-operation in the form of access and information will be provided to EY for the purpose of understanding the alleged irregularities and anomalies identified, such as:

a) The confirmation process of matters sent to identified customers; and
b) Relevant work papers including confirmations and correspondences in relation to the findings and concerns raised.

Accordingly, following the board meeting on 25th June 2021, our solicitors Messrs Shafee & Co. have written to Messrs Lee Hishammuddin Allen & Gledhill the solicitors for KPMG PLT for confirmation of the above requirement put forward by EY (the said letter has also been copied to Bursa Malaysia).

The Company is currently awaiting a response from KPMG PLT through their solicitors.

Can kp&g asks for hold harmless for release info to E&X, but how to hold harmless when this is a suit claim?

Suing kp&g making thing worst now.
On what basis kp&g to release info and confirm info to E&X since no longer auditor relationship?
Asking for audit working papers is always a no no, unless SC/Bursa directive and give assurance.

-------------------
Nikmon If serbak only sue kpbm after EY verify..this will close Cass faster, better for shareholder...now making the issue worst and prolong the issue longer,

If the chairman not aware that sueing auditor will make the issue worst ..this counter no future.

If the chairman deliberately sue auditor to prolong the issue...than something not right.

Another Big 4 to be auditor?
Tick off KPMG, tick off EY (if as reviewer), left 2 options - PwC and Deloitte. It may not easy to invite.

International or bank lenders would prefer to see Big 4 auditors. Not sure it is stated in the loan/lending agreement.

https://www.nst.com.my/business/2021/06/702915/serba-dinamik-finalise-ey-appointment-independent-reviewer-one-two-weeks

"Once we settle the legal working arrangement, EY can start doing their jobs. In one to two weeks time, we will finalise the appointment.

"EY will only do the external audit review, but the audit is not complete yet. So now we have to get another auditor (among the Big Four) to complete the statutory audit. The proposal is out to invite the new auditor, now we just wait for the process to commence," Ilyas told the New Straits Times in an interview.

Let's see any update on independent review b4 8pm today. Promised bursa to give update that day
***************
myinvesting QR
A8. Significant events during the financial year and subsequent events
The Board had previously agreed to conduct a special independent review to address
several matters arising out of KPMG’s audit. Without prejudice to the ongoing civil suit with
KPMG and the allegations therein, to address the market and regulator’s concerns, the
special independent review shall proceed as planned. At this juncture there will be no
financial impact until the review is completed.

QR
A8. Significant events during the financial year and subsequent events
The Board had previously agreed to conduct a special independent review to address
several matters arising out of KPMG’s audit. Without prejudice to the ongoing civil suit with
KPMG and the allegations therein, to address the market and regulator’s concerns, the
special independent review shall proceed as planned. At this juncture there will be no
financial impact until the review is completed.

10 days director

Date of change 25 Jun 2021
Name PUAN MASLEENA BINTI ZAID
Designation Independent Director
Directorate Independent and Non Executive
Type of change Resignation
Reason Due to personal commitment

Name ENCIK HASMAN YUSRI BIN YUSOFF
Designation Director
Directorate Independent and Non Executive
Type of change Resignation
Reason Due to differences in opinion that he has with the decisions made by the Board which in his view are not to the best interest of the company.
Details of any disagreement that he/she has with the Board of Directors Company's decision to commence legal action against KPMG PLT.

Date of change 24 Jun 2021
Name DATO' SERI TENGKU HASMUDDIN TENGKU OTHMAN
Designation Director
Directorate Independent and Non Executive
Type of change Resignation
Reason Due to differences in opinion on decisions made moving forward by the company in light of the current developments.
Details of any disagreement that he/she has with the Board of Directors Company's current decision on action against the auditor.

Date of change 23 Jun 2021
Name PUAN SHARIFAH IRINA BINTI SYED AHMAD RADZI
Designation Director
Directorate Independent and Non Executive
Type of change Resignation
Reason Due to differences in opinion on decisions made moving forward by the Company in light of the current developments which is contrary to the best interest of the Company and its Stakeholders.
Details of any disagreement that he/she has with the Board of Directors Differences in opinion on Company's decision moving forward with regards to KPMG PLT.

Date of change 23 Jun 2021
Name PUAN ROZILAWATI BINTI HAJI BASIR
Designation Independent Director
Directorate Independent and Non Executive
Type of change Resignation
Reason Disagree with the decisions of the Board taken recently which is contrary with her view. The decisions were in her view not the best interest of the Company, stakeholders, particularly the minority shareholders.
Details of any disagreement that he/she has with the Board of Directors Disagree with the decision to commence legal action against KPMG PLT.

Q1 unaudited results. It could be scheduled along with today board meeting, then announce cob today. Otherwise still 3 working days to go.

Risk management will sense other big 4 firms unlikely to take up this audit backlog audit somemore. Get back the same proposed firm - BDO?
Next year surely AOB will select and check the audit work whoever take up this audit.

exercise professional skepticism under the auditing standards

Not sure how to win over this in court.

*********************************
Stockisnotfun: No such thing call excellent audit process la. Just whether they got following the standard or not. So Truecaller is part of of standard

with 30 June coming, so many complications. KPMG could have audit the book up to 31 Dec 2020 only. Company sendiri change year end to 30 June. No audit work covering H1 2021. So many things need to plan and do for year-end. Stocktake? sending another round of audit confirmations? Audit process halted. Who is doing this now? So drag.... no audit report in sight, unless you can take qualified report?

May be with the shadow of 1MDB with hefty fines, auditors' skepticism heightened to the next level or even extreme, to the extent of small picky things like even company format WLL vs W.L.L, Limited vs Ltd, surprise site visits to customers/suppliers offices but hit wall, company search of suppliers background but could be legitimate, company stamp with or without co number. During MCO, it is true many auditors are unable carry out audit at fields or client offices, often remote audit from offsite, rely heavily on e-means/scanning/virtual - it could mean communication via call or email are "colder" than face to face.

after all, have those highlighted matters anything to do with Kpower?

Because auditors are bound by confidentiality clause under the engagement - cannot disclose client information. There is no platform for them to argue/debate in public.
Now since sacked, only place to say is during EGM - likely they will say they standby their findings and yet cannot disclose too much due to client confidentiality.

Serbadk is different in the face of bursa disclosure rules. Have to tell lo at their side of story.


-----mikevillain Most likely, KPMG will opt to remain silent

28/05/2021 10:47 PM

The company grows too fast and KPMG Kuching may find it hard to cope.

HSPlant FFB production buck the trend by an increased 2% in Q4 vs Q3. CPO production dropped by 2% only.

One of the planter with least drop in FFB production in Q4 vs Q3 = -9%. Other planter drop by 12% to 37%.
But average CPO price increased by 21% in Q4 vs Q3.

https://www.theedgemarkets.com/article/hlib-sees-higher-upside-midsized-upstream-planters

Ex Date 25-Jan-2021

Single tier interim dividend of 58.0 sen per ordinary share
Single tier interim dividend of 69.6 sen per irredeemable convertible preference share ("ICPS")

Allianz surprises shareholders with 58c dividend per share

https://www.thestar.com.my/business/business-news/2020/12/29/allianz-surprises-shareholders-with-58c-dividend-per-share

If gross up of the typical dividend application cut of say 20%, 58 sen x 100% / 80% = ~70sen. It should be around 70 sen, higher than last year 65 sen.

Another possibility is to keep the remaining portion to final dividend, allow time to observe economy condition, using year-end audited accounts to apply for final dividend again in early next year. Try luck again in next application to regulator.

At this dividend rate, it works out to be >4% yield over average price, it is considered a decent one. Therea are various factors affecting level of dividend. From shareholders perspective, especially say from Allianz holding co viewpoint, dividend is budgeted in advance and normally it would be an increasing dividend amount premise on increased budgeted profit. On 9 months todate, Allianz Msia reported an increased profit. Dividend should be even higher. But another important hurdle is regulator's approval. All insurance company dividends need prior approval from regulator... In time like this, regulator's approved dividend may be lower than what you applied for, similar to what happened in many years back when RM was much depreciated. It would paint an odd picture to the public if regulator approves a higher dividend during pandemic time, despite company reported higher profit and budgeted for. Allianz General and Life have been stable/growing companies with adequate capital built up over the years and would be able to sustain further growth even with higher dividend payout. Again, regulator approval is beyond your control. It is still a decent dividend at >4% yield after all.

Last year dividend was 65 sen. Hope to see this year to be around 70 - 74 sen.

Although Allianz-PA entitles 20% more dividend than ordinary share, it is not liquid (due to high holding by Allianz SE German and funds) hence not able to reflect 20% premium over ordinary share price.

Allianz General Insurance is no 1 in the industry and it is cash cow business for Allianz Malaysia. With its increased profit YTD, it can pass up more dividend to Allianz Msia Berhad. Its life business has been growing very fast since 10 years ago, topline outgrows its general insurance business now and profit is catching up. It is time for its life business to pass up dividend so that Allianz Msia Berhad can achieve better dividend payout ratio.

Do you wonder why the insurance companies do not really suffer substantial medical claims despite pandemic?

It is because if the policyholder is a confirmed COVID-19 case, he/she needs to admit to the designated government hospital instead of private hospital, and essentially the costs are borne by the government hospitals.

Cost to insurance companies is just RM50 or RM100 per day for hospitalised to government hospital.

Secondly, the number of cases in Malaysia is not that high and under control I would say.

KPJ and IHH hospital revenue have been dropping in last 2 quarters during MCO.
https://klse.i3investor.com/servlets/stk/fin/5878.jsp
https://klse.i3investor.com/servlets/stk/fin/5225.jsp

When the hospital business is getting lesser during pandemic and people avoid visiting hospitals / avoid seeking medical treatment during COVID-19 pandemic,
....on the other hand, it means lesser medical claims against the insurance companies, especially life insurance companies.

During pandemic, the positive effect on life insurance companies is lower medical claims. Generally, medical portfolio is the largest portfolio of most life insurance companies and usually claim ratio is also very high due to expensive medical + inflation.

Lower claims against insurance companies will give substantial savings and profits to insurance companies.

Allianz General will see better profit from its motor business (lower motor claims due to reduced traffics on the road) and Allianz Life will see better profit from its medical business (lower medical claims).

From Allianz annual report, Allianz signed on as preferred partner for Pos Malaysia since Q4 2020. General insurance industry would know that Pos Malaysia is one of the major business sources for many general insurers given its large network of branches nationwide.