Posted by OldWiseMan100 > 2021-05-26 22:04 | Report Abuse

Serba Dinamik Press Release 26-May-2021

https://docdro.id/BXpqyA0


SERBA DINAMIK HOLDINGS BERHAD EYEING TO COMPLETE STATUTORY AUDIT AND INDEPENDENT REVIEW

The Group is targeting to finalise its audited financial results by end September and annual report by October

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KUALA LUMPUR, 26 MAY 2021 - Serba Dinamik Holdings Berhad (“Serba Dinamik Holdings” or the “Group”), a global integrated engineering services provider, today announced that the Group has responded to matters brought up by its external auditor, KPMG PLT (“KPMG”) pertaining to its annual statutory audit for the financial year ended 31 December 2020 (“FYE2020”).

Group Managing Director / Group Chief Executive Director of Serba Dinamik Holdings, Dato’ Dr.Ir. Ts. Mohd. Abdul Karim bin Abdullah (“Dato’ Karim”) expressed, “The Group’s management has taken prompt action to address the matters much earlier prior to the announcement made to Bursa Malaysia on 26 May 2021. As far as we are concerned, we have not changed our business structure materially since the initial public offering (“IPO”) in 2017 and have worked with KPMG, whose auditors are familiar with our operations, since 2013. As far as the management is aware, we have been conducting our business professionally”.

“We have also engaged potential international independent firms to assess the veracity and accuracy of the matters brought up by the external auditor after consulting with Bursa Securities as time is now of essence given that we need to prepare for the Group’s annual report for publication by 31 October 2021, resulted of change of our financial year end to 30 June. The audit for FYE2020 has had its share of challenges given the impact of the COVID-19 pandemic in the markets where the Group has a presence at more than 20 countries. This has certainly presented challenges to finalise the financial statement”.

“We are in the midst of finalising the terms of appointment of the independent firm and are expected to confirm the appointment as soon as possible. We will accord the to-be-appointed independent firm the time and space to verify the matters with accuracy and veracity. We will be updating promptly any material developments in a transparent manner”.

“We understand the concerns of our stakeholders and shareholders and ask for their understanding and patience on the matters raised. Please be assured that the Board and management remain committed in safeguarding your interests. In the meantime, day-to-day operations will continue and we appreciate the support of stakeholders and shareholders in resolving this matter”.

Posted by sayangawak > 2021-05-26 22:25 | Report Abuse

Better run first

Posted by kfbusjd > 2021-05-26 23:08 | Report Abuse

zero effect to company earnings, as long as it can make more and more money, it is good. Y cut loss waste 10% of money?

Posted by sayangawak > 2021-05-26 23:32 | Report Abuse

Me clear position ady

Posted by LongTermInvestor8 > 2021-05-27 00:03 | Report Abuse

*Serba’s external auditor on statutory accounts 26 May 21 briefing:*

- Cannot mention specifically what issues triggered this, only mention – no RPT involved, - not backdated (only relates from 2020 financial onwards which will stretch to 18months due to FYE change), no worst case guidance

- Doesn’t involve other listed companies i.e. SCIB/ KPOWER

- FYE change from Dec to June is to comply with KPMG request (concurrently), b) KPMG requested an independent review is to ensure accuracy of findings for the additional procedures required for points raised by them, c) the whole audit process being reviewed, not on a particular project or subsi, but for all operations especially in view of COVID19 in certain geography and KPMG wants independent review especially for things not within their normal scope

- Mentioned that KPMG started highlighting points since Oct 20 and Serba had been engaging with KPMG on their issues, but KPMG’s request for independent audit was only made in Apr 21. Serba did not receive reports or claims of fraud. What has been highlighted by KPMG is already addressed, right now just require process of independent review to solidify Serba’s efforts with KPMG

- Mentioned COVID19 also caused delays in auditing process (due to so many countries and JV structures in Serba) and streamlining accounting issues raised by KPMG

- No indication from banks to stop banking facilities at this point

*We already have a non-consensus call of HOLD with TP of RM1.78* My view:

I studied Back in AR 2019, the independent audit report (done by KPMG) covered a few Key Audit Matters
a) Revenue recognitions from O&M and EPCC – they inspected and verified how revenues were earned and the receivables.
b) Material on site balance (inventory) in locations like ME and Malaysia – they reevaluated the inventory controls and counts / purchase
c) Trade receivables and contract assets – Tested accuracy and process of receivables including any impairment assumptions

Now linking to what they said that COVID-19 delayed the audit process, my guess is it makes sense if *COVID-19 would have complicated the actual counting of revenues and inventories especially overseas operations*.

However, in my view if this is the case, *it is not an issue major enough to force upon special audit. Not all auditors will want to ultimately damage their big client* with such negative sentiment. Some auditors may not force their precious client to do special audit and just accept, since the client mentioned they already responded to the issues and requests raised

But I was also made to understand that despite KPMG having audited them before, this time the request is more stringent because some of the auditors are new personnel, who probably have “different standards” and want to understand their operations more hence requiring an external auditor party. Bursa also forced them to make this special audit announcement when they informed Bursa of the FYE change. So, along with COVID, it is kind of a triple whammy scenario

Retailers were spreading few weeks ago that Block 7, the client of the RM8b EPCC job in ME, is now co-owned by Serba. *We understand this is not RPT but is part of its asset ownership strategy. And Block 7 is not one of the issues raised by the auditors*.

Overall, *there may be knee jerk reaction to Karim stocks but the speed of which the issues will be resolved (assuming they are not serious or fraudulent) should offer bargaining opportunities*, especially with KPOWER/ SCIB which have nothing to do with Serba’s special audit issue.

Posted by lawrgan > 2021-05-27 00:45 | Report Abuse

Related companies can’t escape from the institution selling down. Prepare for the worst situation.

Posted by stockraider > 2021-05-27 07:28 |

Post removed.Why?

Posted by stockraider > 2021-05-27 08:36 |

Post removed.Why?

Posted by stockraider > 2021-05-27 08:37 |

Post removed.Why?

Posted by stockraider > 2021-05-27 08:44 | Report Abuse

Must run fast fast b4 too late loh!

Posted by sayangawak > 2021-05-27 08:49 | Report Abuse

Runnnn fast!!!

Posted by gcke > 2021-05-27 08:54 | Report Abuse

Read - https://www.thestar.com.my/business/business-news/2021/05/27/kpower-distances-itself-from-serba-dinamik

Posted by sayangawak > 2021-05-27 08:57 | Report Abuse

Runnnnnnnnn!!!!!

Posted by Newbieinshare > 2021-05-27 09:09 | Report Abuse

why run??? nothing wrong with this counter. buy when people are in fear sell when people is greed

Posted by KEENTRADER > 2021-05-27 09:10 | Report Abuse

dropping

Posted by KEENTRADER > 2021-05-27 09:11 | Report Abuse

planning for new shares to be issued at rm2.05

Posted by Hotstuff > 2021-05-27 09:15 | Report Abuse

bought 100k units @ 1.52

Posted by Hotstuff > 2021-05-27 09:16 | Report Abuse

easily make 10-20k in 2 days

Posted by Silent 88888 > 2021-05-27 09:17 | Report Abuse

serbadk suspended so ppl come this counter to release their fear and worried ...
what a gg move

Posted by Antfakeguru1 > 2021-05-27 09:21 |

Post removed.Why?

Posted by KEENTRADER > 2021-05-27 09:21 | Report Abuse

gonna limit down

Posted by Hotstuff > 2021-05-27 09:24 | Report Abuse

buy low sell high but how many practicing?

Posted by nmsfqi > 2021-05-27 09:24 | Report Abuse

Thanks all! Kaw kaw discount! Time to be greedy!

Posted by Antfakeguru1 > 2021-05-27 09:25 | Report Abuse

TP 0.60

Posted by Newbieinshare > 2021-05-27 09:26 | Report Abuse

buy when people are in fear... if u look at the volume transacted throw by ikan bilis saja

Posted by greencode > 2021-05-27 09:27 | Report Abuse

Anson also trap already. Con company

Posted by investorbat > 2021-05-27 09:28 | Report Abuse

i think today's volume will break 40mil shares,big boy r running,try bottom fishing around 1.3

Posted by kfbusjd > 2021-05-27 09:28 | Report Abuse

wow panic selling buy now 2morrow sure profit

Posted by Newbieinshare > 2021-05-27 09:28 | Report Abuse

scib has more direct relation with serbadk only drop 8%

Posted by MagicGlove > 2021-05-27 09:29 | Report Abuse

Limit down

Posted by Hotstuff > 2021-05-27 09:30 | Report Abuse

don not blame those nay sayer because many of them bought at 2.50 above. it's ok to pissed off

Posted by investorbat > 2021-05-27 09:31 | Report Abuse

Big boys dumping,boss buying ,end of day see who wins

Posted by mfbulleyes > 2021-05-27 09:31 | Report Abuse

Co. in deep shit now. Order book in hand all losing money coming for the next one year due to material price increase. Solar project steel contribute around 50% of the cost. Better wait and see what next on steel price.

Posted by investorbat > 2021-05-27 09:33 | Report Abuse

u see the buy an sell q volume,big boys r fighting,small bilis please wait n see

Posted by t_nike2002 > 2021-05-27 09:34 | Report Abuse

All Karim’s stocks gone case already.. investors no longer trust his stocks anymore.. when reputation gone.. it’s difficult to gain back regardless of results
Better sell..

Posted by KEENTRADER > 2021-05-27 09:36 | Report Abuse

BOUGHT AT 1.43

Posted by pang72 > 2021-05-27 09:36 | Report Abuse

Limit down la...

Posted by pang72 > 2021-05-27 09:36 | Report Abuse

Still don't run...

DIE lo

Posted by Yu_and_Mee > 2021-05-27 09:38 | Report Abuse

I think will not limit down. Some said opportunity will only reserved for brave person. But I'm not brave. I'll wait to see.

Posted by TheMechy > 2021-05-27 09:38 | Report Abuse

When the bad news is coming, this initial bull run phase just started.

Posted by Ally Yee Min Ong > 2021-05-27 09:42 | Report Abuse

Manage to grab at RM1.496. Yummy and delicious.

Posted by KEENTRADER > 2021-05-27 09:42 | Report Abuse

HOPE SO. BARGAIN HUNTING TIME

Posted by hantamking > 2021-05-27 09:50 | Report Abuse

nice bargain , get lowest hahaha !!!! nice !!!

Posted by hantamking > 2021-05-27 09:51 | Report Abuse

thank you very much

Posted by kfbusjd > 2021-05-27 09:52 | Report Abuse

still around 1.5 zz waiting at 1.4

Posted by kfbusjd > 2021-05-27 09:58 | Report Abuse

sadly, discount time is already over. go higher and higher now.

Posted by HexagonChamp > 2021-05-27 09:59 | Report Abuse

Will be 2MDB or not

Posted by HIGHCHAPERAL > 2021-05-27 10:03 | Report Abuse

Never trust Abdul Karim. Can clearly see he is like Razali of Puncak Niaga.

Posted by HIGHCHAPERAL > 2021-05-27 10:04 | Report Abuse

Now we can see Kpower has no substance. Private placement and further dilution !

Posted by kfbusjd > 2021-05-27 10:05 | Report Abuse

i trust mustakim not karim.