Citi Research said the development at Serba Dinamik may serve as an overhang until the independent reviewer is able to verify the veracity and accuracy of the audit matters.
“Fundamentally, there is no change nor disruption to the group’s ongoing businesses at this juncture, ” Citi said yesterday, keeping its “buy” rating on the company.
DescriptionSerba Dinamik Holdings Berhad - Special Notice on Proposed Removal of Auditors and Appointment of New Auditors
The Board of Directors of Serba Dinamik Holdings Berhad (“the Company”) wishes to announce that the Company had on 28 May 2021 received a special notice from Datuk Haji Abdul Kadier Sahib, a Non-Independent Non-Executive Director and a shareholder holding 15.96% of the total issued share capital of the Company, proposing the following:
the Company to convene an extraordinary general meeting ("EGM") pursuant to Section 311 of the Companies Act 2016 (the "Act");
the proposed removal of KPMG PLT as auditors of the Company ("Proposed Removal of Auditors") pursuant to Sections 277 and 322 of the Act; and
the proposed appointment of BDO PLT as new auditors of the Company in place of KPMG PLT for the financial year ending 30 June 2021 ("Proposed Appointment of New Auditors").
(The Proposed Removal of Auditors and Proposed Appointment of New Auditors are collectively referred to as the "Proposals").
The Proposals are subject to the approval being obtained from the shareholders at an EGM to be convened later.
A Circular to Shareholders containing details of the Proposals together with the Notice of EGM will be despatched to the shareholders of the Company in due course.
BDO is founded on the culture that people and hence relationship matters. When asked, who we are and how we are different from our closest competitors, people who know us are known to respond that “BDO is the ‘People’ firm”. We listen to our clients to give them the value and levels of service that they have come to expect from working with us – nothing short of exceptional. It is no wonder, as people are at the heart of our business. Our strength lies in our people – the experience and the insights they bring to each and every engagement. From this vantage point, we service our clients and tailor our solutions to align with meeting and where possible, exceeding their needs. What more - the BDO structure allows us to have the flexible characteristics of a local specialist firm, whilst drawing on the wealth of specific expertise and resources of a world-wide network and strength of a large scale global player. This uniqueness reinforces our shared culture. Our end goal is to build a firm that contributes to our industry, nation and communities. We do this by committing to delivering exceptionally through our people and by being grounded in our values. We believe we need to be a firm that people who work with and for us, can be proud of
This is not the way to manage the current crisis. Just change auditor because they did not agree to go your way. More uncertainties and unknown for Serba Dinamik going forward. For KPMG to head-on with BOD on statutory audit is no joke as they are willing to sacrifice their HUGE audit fees for the sake of good accounting practices. What if newly appointed BDO also not agree to go along with the BOD on the subject issue, change auditor again....?? Total collapse and respect for the "Karim" brand....which may affect the 2 younger 'brothers' too
hello, anyone wants to buy my Cook Book? It is called 'K can Cook', first 1000 buyers get an autographed version, also comes with a special CD for your grandma broken CD player. Buy 2 books, free 1 Serba shares. Hurry, dont miss this opportunity.
2. DETAILS OF THE MATTERS HIGHLIGHTED BY THE EXTERNAL AUDITORS
The Company wishes to inform that the matters raised mainly by the external auditors on 3
May 2021 pertaining to the statutory audit relates to the following:
2.1 Certain customers’ confirmation relating to sales transactions, trade receivables
and material on site balances
Issues raised by KPMG:
- KPMG had sent out confirmations on the aforesaid balance where only 1 reply out of
12 customers was received by KPMG.
- In order to hasten the process, the Company had subsequently sent a second
confirmation to the remaining 11 customers with same amount as in our first
confirmation to the relevant debtors of which all have replied.
- Based on the meeting dated 3 May 2021, KPMG has yet to test the completeness and
- is not able to verify the authenticity of the confirmations identified nor validate the
person signing the confirmation.
Management’s Action / Reply to queries:
In addressing the above queries, the Company had carried out the following:
- Proposed to arrange for interviews and other means of communication between
KPMG and certain debtors to clarify matters;
- The Board also suggested to KPMG to send the third confirmation;
- Requested KPMG to share the signed confirmation that was in contentious for the
Company’s further investigation; and
- Commitment to continuously assist KPMG.
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Jeffson87
281 posts
Posted by Jeffson87 > 2021-05-28 18:00 | Report Abuse
Technically it doesn't look good, fundamental still good. I just buy and hold. Long term. Cheers