This is not because they are scared or they admit they are guilty.(Pls dont misunderstand).
Auditors are generally required to be independent and objective during an audit, because they are responsible to issue an opinion on the truth and fairness of a company's financial statements(f/s).
They cannot be seen to be siding the directors due to fear or favour. Instead, they should be protecting shareholder's interests.
Board of directors are responsible over the preparation of f/s, and the f/s are then audited by the external auditors. The auditors will then issue their opinion to shareholders.
Notice there is a 3 party relationship here.
1)The auditors who audit the f/s, and
2)Directors who are responsible over the preparation of f/s and
3) The shareholders, who are the recipient of the f/s and the auditor's opinion.
Auditors work for the shareholders and not the board.
The board cannot exert their power or influence on the auditors. The legal case initiated by the board, however, shows otherwise.
So,
KPMG has no choice but to resign because they will no longer be able to audit the f/s objectively, there is now a perception that kpmg may compromise in the audit due to the fear over the outcome of the legal case.
(So, the safest thing to do, is resign, and this is the message to shareholders. Resignation is also strongly recommended by auditor's code of ethics)
The board's decision to take a legal action on KPMG represents an intimidation threat, where the board can be perceived as saying, you either accept what we say or face the consequences of the legal prosecution. (Although their true intention maybe something else)
The question now is:
Was there a need to take legal action on the auditor while the audit is not complete and call for a press conference to condemn the auditor, instead of explaining and solving the issues in hand?
Didnt the audit committee give a warning to the board about how a legal case will affect auditor's independence?
A legal case is a serious issue. Wasn't this discussed with all major shareholders? Did they call for an egm to discuss with shareholders, especially the majority or institutional shareholders, before proceeding?
To get more clarity,
We need to know who are the top 3 major shareholders of Serba Dinamik and whether they were consulted before the legal action was taken.
At the end of the day, KPMG will still need to face the legal case and protect their own reputation, and in the process, have to let the shareholders and authorities know their side of the story, with proper evidence.
This is not only about audit and accounting, its moving towards wider governance issues..
He sold his WA to create panic sell to buy mother share cheap.
After SIR, it goes to Rm1.00. Why buy then when he buys now?
Of course, Bursa only talks to the INED. So, this is not insider trading.
Markable Mostly in this room are holding SD share, including me. I can feel what anger what you all had. Why boss disposed all warrant during this critical time. The reason can be few
1. Warrant exercise price is too high, unless SD revised it, if not RM0.1 and RM 0.05 warrant price make no different. Current point of view is WA nearly toilet paper, if for me, i will do the same thing cash out to help mother share (or keep it in my bank).
2. Follow by No.1, why wanted to push mother share IF SIR favour to SD. Something smell no good for me. Perhaps is ready bullet wait for SIR release and use that to stabil the mother share.
Anyhow, my 70% of my saving investment are in SD. Even I know today will have huge losses but i still keep SD with me. Hopefully next week there is GOOD news to help us all.
Is just my 2cent poor advise, take it or leave it. No against to anyone.
Very crap logic indeed. Mean to say that mother price will shoot upto 1.0 and son will remain at 7cents. In Fact if the mother shoot up to 1.0, the son would Also move and possibly he might have earned more by not selling the son
Just Cut the crap
ǷearlꙌhite . You did not consider a very strong possibility.
He sold his WA to create panic sell to buy mother share cheap.
After SIR, it goes to Rm1.00. Why buy then when he buys now?
. If you cannot read nor t understand the focusmalaysia article and what he "very obviously" stated black and white as "necessity", then you should take responsibility for your poor decisions.
You do not decide what CEO Karim does but he can decide your investment results.
newtrader1989 Very crap logic indeed. Mean to say that mother price will shoot upto 1.0 and son will remain at 7cents. In Fact if the mother shoot up to 1.0, the son would Also move and possibly he might have earned more by not selling the son
aiyoyo. love can become hate, promoters can become destroyer too leh , hehehehe. ada tanda tanda oledi leh. If further drop , then you will see destroyers not promoters leh, hehehehehe
aiyoyo , not good loh like that, you mean he purposely drop the price from around 2.00 to 0.35, is it >??? if yes, he really decide our investment result loh, cry cry cry wuwuwuw, ---------------------------------------------------------------------------------------------------------------
If you cannot read nor t understand the focusmalaysia article and what he "very obviously" stated black and white as "necessity", then you should take responsibility for your poor decisions.
You do not decide what CEO Karim does but he can decide your investment results.
newtrader1989 Very crap logic indeed. Mean to say that mother price will shoot upto 1.0 and son will remain at 7cents. In Fact if the mother shoot up to 1.0, the son would Also move and possibly he might have earned more by not selling the son
Abdul Karim who had in the past also trimmed his shareholding in the company’s mother his shares due to forced-selling has justified his decision to unload his entire holding of 55.9 million of the group’s warrants this week as “purely a business decision out of necessity” while reiterating his commitment “to turnaround Serba Dinamik from the doldrums”.
“My warrant disposal is to take advantage of it being traded at premium and shouldn’t be conceived as I harbor intention to exit the ship which I took so much sweat, tears and blood to build … I will make sure the ship continues to sail in the roughest of seas,” he told FocusM.
“Rest assured that I shall channel proceeds from the sale of the warrants to acquire the mother shares…Despite the turbulence, it’s still very much BAU (business as usual) at Serba as our current order book stands at RM18 bil.”
#Mabel Abdul Karim who had in the past also trimmed his shareholding in the company’s mother his shares due to forced-selling has justified his decision to unload his entire holding of 55.9 million of the group’s warrants this week as “purely a business decision out of necessity” while reiterating his commitment “to turnaround Serba Dinamik from the doldrums”.
“My warrant disposal is to take advantage of it being traded at premium and shouldn’t be conceived as I harbor intention to exit the ship which I took so much sweat, tears and blood to build … I will make sure the ship continues to sail in the roughest of seas,” he told FocusM.
“Rest assured that I shall channel proceeds from the sale of the warrants to acquire the mother shares…Despite the turbulence, it’s still very much BAU (business as usual) at Serba as our current order book stands at RM18 bil.” 22/10/2021 12:10 PM
Sell warrant buy mother is not a bad idea for Karim..
Mabel 2019 Bonus Issues Free Warrant still remains untouched...just like a virgiin. Expiry date still long way to go. Just keep in the wardrobe until Dec 2024. By that time Serba should be back at it's glory days where it was trading RM 4+++ and were heading towards RM 5 before the 2019 Bonus Issues exercises....
@ pearl white, I think hehehehe, is KPMG decide SD results and now move to EY. Now EY yang decide our result leh, not him leh, cry cry cry, betulkeh , pearl white 22/10/2021 12:11 PM
who follow stockPIGtutU followers of that two so called guru one is claimed himself as doctor but disappear quite long time already serve you all right plantinum members. Wakakakaka
. Don't ask for confirmation here when you can't even think for your own nor read what is posted by certain individuals on important issues that you seek.
Dont be a beta male, simp, needy person, orbiter. Nobody likes that.
OpporturnityHunter OpporturnityHunter I think hehehehe, is KPMG decide SD results and now move to EY. Now EY yang decide our result leh, not him leh, cry cry cry, betulkeh , pearl white
aiyoto, when you do 1 same thing it must depends on timing. dulu tak ada kes kpmg, ppl not that sensitive to his selling, now it is a crucial and sensitive time, ppl pasang mata see what you do the next leh. he sell few lot can influence the whole picture leh. faham keh
--------------------------------------------------------------------------------------------------------------- Mabel Abdul Karim who had in the past also trimmed his shareholding in the company’s mother his shares due to forced-selling has justified his decision to unload his entire holding of 55.9 million of the group’s warrants this week as “purely a business decision out of necessity” while reiterating his commitment “to turnaround Serba Dinamik from the doldrums”.
“My warrant disposal is to take advantage of it being traded at premium and shouldn’t be conceived as I harbor intention to exit the ship which I took so much sweat, tears and blood to build … I will make sure the ship continues to sail in the roughest of seas,” he told FocusM.
“Rest assured that I shall channel proceeds from the sale of the warrants to acquire the mother shares…Despite the turbulence, it’s still very much BAU (business as usual) at Serba as our current order book stands at RM18 bil.” 22/10/2021 12:10 PM
. Here is proof why he still tak faham. Can't even read between the lines and think about the intention of the article.
OpporturnityHunter aiyoto, when you do 1 same thing it must depends on timing. dulu tak ada kes kpmg, ppl not that sensitive to his selling, now it is a crucial and sensitive time, ppl pasang mata see what you do the next leh. he sell few lot can influence the whole picture leh. faham keh
aiyoyo, i only faham when SD price raise after selling of SD-WA leh, ok ok lah, you want to find excuses to console yourself leh. I salah loh, I tak faham loh, you faham OK liao. hehehehe, you feel better now ?? I am very good person leh, hehehe
@newbie8080, dont worry lah, SD and SD-Wa is 2 different entity leh, you see, when SD raise, SD-Wa drop, when SD drop, SD-Wa raise, they are totally 2 different entities leh, hehehehe.
Haha.. How do u read the chart : Broken MA 20 days MACD cross death line RSI down STOCK RSI down ETC...When it broken MA 20 will be on the dangerous situation
If the SIR is negative, then there will be massive right off in debtors and inventories. It will be the next AirAsia and not talking about whether share will be 50sen or 1 sen. My guess is that the debtors are from related parties transactions.
SIR is due soon. If you know you done nothing wrong the SIR will prove it. Then share will fly thru the roof. The warrant will also go up. Why sell if you are confident
aiyoyo, takut takut, Karem sold all his warrant, market oledi react like this. If SIR not good, he will be in big big big trouble , not only SD, but also, Kpower and SCIB drop drop like waterfall , cry cry cry.
Hahaha lmao ǷearlꙌhite please be prepared with next round of coverup and crap explanations because I am 200% confident that after bad SIR released you will still be defending serba all out hahaha lolzzz
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FSX123
298 posts
Posted by FSX123 > 2021-10-22 11:52 | Report Abuse
Kpmg has resigned as auditors of SD.
This is not because they are scared or they admit they are guilty.(Pls dont misunderstand).
Auditors are generally required to be independent and objective during an audit, because they are responsible to issue an opinion on the truth and fairness of a company's financial statements(f/s).
They cannot be seen to be siding the directors due to fear or favour. Instead, they should be protecting shareholder's interests.
Board of directors are responsible over the preparation of f/s, and the f/s are then audited by the external auditors. The auditors will then issue their opinion to shareholders.
Notice there is a 3 party relationship here.
1)The auditors who audit the f/s, and
2)Directors who are responsible over the preparation of f/s and
3) The shareholders, who are the recipient of the f/s and the auditor's opinion.
Auditors work for the shareholders and not the board.
The board cannot exert their power or influence on the auditors. The legal case initiated by the board, however, shows otherwise.
So,
KPMG has no choice but to resign because they will no longer be able to audit the f/s objectively, there is now a perception that kpmg may compromise in the audit due to the fear over the outcome of the legal case.
(So, the safest thing to do, is resign, and this is the message to shareholders. Resignation is also strongly recommended by auditor's code of ethics)
The board's decision to take a legal action on KPMG represents an intimidation threat, where the board can be perceived as saying, you either accept what we say or face the consequences of the legal prosecution. (Although their true intention maybe something else)
The question now is:
Was there a need to take legal action on the auditor while the audit is not complete and call for a press conference to condemn the auditor, instead of explaining and solving the issues in hand?
Didnt the audit committee give a warning to the board about how a legal case will affect auditor's independence?
A legal case is a serious issue. Wasn't this discussed with all major shareholders? Did they call for an egm to discuss with shareholders, especially the majority or institutional shareholders, before proceeding?
To get more clarity,
We need to know who are the top 3 major shareholders of Serba Dinamik and whether they were consulted before the legal action was taken.
At the end of the day, KPMG will still need to face the legal case and protect their own reputation, and in the process, have to let the shareholders and authorities know their side of the story, with proper evidence.
This is not only about audit and accounting, its moving towards wider governance issues..
Lets see what happens next.