Posted by bojed > 2021-12-09 21:32 | Report Abuse

No announcement on defaultIng of coupon payment so far, so maybe SD have already paid it I suppose?

Posted by newtrader1989 > 2021-12-09 23:28 | Report Abuse

As per BOD, Coupon payment default is not material information. No need to announce one
Last time when missed the original coupon payment date also never announced one. Got to know from news only and later bursa query.

Posted by DannyArcher > 2021-12-09 23:47 | Report Abuse

are they gonna sue the bondholder?

Posted by newtrader1989 > 2021-12-10 02:27 | Report Abuse

Yes possible, they can sue anybody

Posted by alenac > 2021-12-10 08:07 | Report Abuse

https://www.theedgemarkets.com/article/bursas-suit-sheds-more-light-serba-dinamiks-financials

Findings of SIR consistent with KPMG’s doubts
The court documents detailed that following its investigation, EY Consulting, like KPMG, had doubts on the veracity of the transactions with 11 identified customers, in relation to its first scope of work. EY Consulting estimates the total sum involving nine out of the 11 identified customers to be more than RM435 million.

KPMG came to doubt the veracity of the transactions with the 11 identified customers because of the suspicious external confirmation letters received from Serba Dinamik’s clients.

It is a standard procedure during the course of auditing for auditors to send out external confirmations to selected customers and suppliers of its client to provide confirmation on transactions such as sales, receivables and payables.

In a report to the board of directors prepared by KPMG sighted by The Edge, the auditor highlighted that only one out of 12 external confirmations sent to its clients were returned based on the auditor’s confirmation request.

Interestingly, the 11 other customer companies did not reply to KPMG’s request initially. However, these customers responded when an individual named “Encik Hafiz” sent them the requests later.

A common theme of the confirmation replies in KPMG’s findings was that the representatives signing the confirmation were not identifiable and may not even exist in the database of the various customer companies.

KPMG told the board in its report that it could not verify the authenticity of the confirmations received as it was unable to determine the existence of the individuals signing the confirmation replies.

Scope 2: Local suppliers
Under the second scope of EY Consulting’s findings for the SIR, in respect of the concerns raised by KPMG regarding six identified local suppliers, EY Consulting similarly raised concerns on the veracity of the transactions with the six, stated the court documents. The recorded transactions and other amounts were found to be more than RM638 million.

The concerns raised by KPMG’s report regarding the six local suppliers were similar to that of the 11 customers. KPMG was unable to ascertain the existence of the suppliers in question as well as the appropriateness of the purchases made during the year.

In its findings, company searches on Serba Dinamik’s local suppliers raised several common red flags. Two of the suppliers had the same incorporation date of April 23, 2019, while five suppliers with a paid-up capital of RM100,000 have the same registered office.

What is more concerning is that KPMG noted that each supplier was owned by an individual shareholder with transactions ranging between RM60 million and RM96 million.

The two suppliers that were incorporated on the same date also share the same business address. However, when the auditors paid a visit to determine the physical existence of the suppliers, they were unable to locate the suppliers at both their business and registered addresses.

KPMG then embarked on extended procedures on selected suppliers based on the contacts provided by the management. Out of the 10 suppliers, the management only provided the auditor with two contacts.

One supplier, Kekal Jitu Sdn Bhd, had only one employee, who confirmed that she was the administrative executive of the company and had just joined the company on March 1, 2021.

Scope 3: IT contracts
Meanwhile, in scope three of the SIR, EY Consulting found anomalies with respect to the IT contracts entered into by the company’s subsidiary, SDIT International Ltd, with five of the identified customers and one of the identified suppliers.

The court document stated that EY Consulting also found other anomalies with respect to other customers and suppliers that had not been identified by KPMG. It said that the total sum involved was in excess of US$76 million.

KPMG in its report highlighted that SDIT had recognised revenue amounting to US$102.5 million and a net profit of US$16.1 million since its incorporation in 2019.

However, the amount of net profit yet to be received from customers stood at US$15.2 million, meaning that it only received US$0.9 million in receipts from its customers.

The auditor highlighted that the respective contracts contained neither the company registration number nor the registered business address of the contract customers.

KPMG pointed out that six out of seven of the customers would make direct payments to subcontractors and the Serba Dinamik group received the net amount — the share of profit — arising from the arrangement between the parties. This is odd given how the contract agreement was between SDIT and the customer.

The auditor also noticed discrepancies between the names as well as addresses contained in the legal contract and the invoices and customers’ website.

KPMG said it was unable to determine the appropriateness of the transactions entered int

Posted by alenac > 2021-12-10 08:12 | Report Abuse

Scope 4: Bahrain customer and supplier
As for the final scope of the SIR, EY Consulting’s investigations into the matter found that the Bahrain customer could be related to the company. Likewise, EY Consulting also cast doubts on the veracity of the transactions with the Bahrain supplier. In the court document, EY Consulting estimates that the invoices and delivery orders of the Bahrain customer amount to more than US$12 million.

In KPMG’s audit, a physical visit to Serba Dinamik’s Bahrain supplier Spectrum Oilfield Solutions WLL’s commercial registration address led the auditor to a supermarket while the address provided in the statement of accounts could not be located.

Meanwhile, Serba Dinamik’s Bahrain customer LATA International’s commercial registration address brought the auditor to what seemed to be a workers’ accommodation. The auditor also found it unusual that the fax number indicated on the official website of LATA was registered under the group’s regional general manager.

KPMG said that it was not able to ascertain the existence of the supplier or the customer and the appropriateness of the respective purchases and sales transactions that took place during the year.

While Serba Dinamik and the regulators alike are not backing down in the fight, the ones on the losing end are the minority shareholders — left out of the goings on behind the scenes but unable to exit the company given the suspension of the shares.

Posted by ǷearlꙌhite > 2021-12-10 08:18 | Report Abuse

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TheEdge : Having read Bursa's of Originating Summons and SIR - What is your conclusion?

by Pearlwhite 5th December 2021 10.12AM (Updated 6th December 2921 10.35AM)

The Edge in its feature length coverage on 29th November 2021 entitled “Bursa’s suits sheds more light on Serba Dinamik’s financials” sheds some very interesting lights on Bursa and The Edge.

In the four areas of SIR, it always begins in a paragraph or two that "EY shares the same concerns" or "EY found discrepancies". Thereafter, it continues with a repeat of KPMG's findings that was disclosed by Serba Dinamik in May 2021.

That narrative meant that that all of KPMG's findings are correct, in addition to more discrepancies that were found. So,

Firstly, the question is that does "EY shared the same concerns" or "EY found discrepancies" a result that cannot be disputed? Not once was there any mention of words that suggests "finalisation", "completion", "conclusion" or some words towards that effect.

Secondly, there was never mention of any attempts to resolve the RM1.438 billion of audit discrepancies. Was this the reason why Bursa wanted it to be disclosed as EY was supposed to stop work (just like what KPMG did previously)?

Thirdly, nor was the fact that up to RM3 billion worth of audit discrepancies that was resolved was ever mentioned or more likely conveniently left out.

Finally, what is more intriguing, Bursa has given the option to Serba Dinamik to continue to complete the SIR with EY and in the event that EY resigns or is terminated, Serba Dinamik will appoint another auditor with international affiliation to complete the SIR in its Originating Summons.

Consider this. Here is an excellent framing of the above mentioned,

"EY found 'evidence' backing KPMG's doubts on Serba Dinamik"

https://www.themalaysianist.com/ey-found-evidence-backing-kpmgs-doubts-on-serba-dinamik

This together with “Bursa’s suits sheds more light on Serba Dinamik’s financials” paints a very negative picture to the ongoing SIR.

However, if the media were truthful and not immoral and went on by presenting the headline in a balanced way by considering Serba's Dinamik response to Bursa's and EY's affidavits, it would have went like this,

"With RM3 billion cleared, EY continues to work on RM1.4 billion of unresolved audit discrepancies."

"With, two thirds cleared with one third being audited. A little more to go.".

This whole SIR saga deserves a re-look as there are too many discrepancies of it own as the presentation of facts were solely from Bursa's and EY's point of view.

Posted by alenac > 2021-12-10 08:22 | Report Abuse

Great report from the edge, that is why Serbak will not published, bad and adverse, points toward book cooking

Trade receivables (customers), It contracts & Trade creditors (suppliers) transaction doubtful. Very material and spread over major balance sheet items. Conclusion : Can only be done with knowledge of top management.

Posted by amirf1221 > 2021-12-10 08:23 | Report Abuse

New day

Any progress so far?

Posted by amirf1221 > 2021-12-10 08:23 | Report Abuse

Good if have certained actions

Need more like that

To a better one

Posted by ǷearlꙌhite > 2021-12-10 08:26 | Report Abuse

.
Now this is progress. Let's see what has been found out about The Edge.

1) The Edge is lobbying Bursa Malaysia to break its own rules.
2) The Edge doesn't know who the regulator of the capital market is.
3) The Edge had concealed that RM3 billion of audit discrepancies were resolved in the SIR.
4) The Edge had concealed that audit discrepancies within Malaysian borders were resolved in the SIR.
5) The Edge had concealed that audit discrepancies that had KPMG as external auditors were resolved in the SIR.
6) Jose Barrack's sifu gave feedback that The Edge cannot be taken seriously with poor quality journalism.
.

Posted by alenac > 2021-12-10 08:31 | Report Abuse

Kacang Putih, why critical of the media? Is it not the job of companies to report the truth and not cook books. The culprit is caught, next is to find out who did all these documentation before he/she disappeared like Jho Low.

from Kacang Putih
However, if the media were truthful and not immoral and went on by presenting the headline in a balanced way by considering Serba's Dinamik response to Bursa's and EY's affidavits, it would have went like this,

Posted by Shinnzaii > 2021-12-10 08:37 | Report Abuse

Eh how was SC investigation already...how many % completed? hehe

Posted by amirf1221 > 2021-12-10 08:40 | Report Abuse

Got official statement?

That would be great

To clear thing out

Posted by amirf1221 > 2021-12-10 08:41 | Report Abuse

May the truth prevail

The most awaited matter

Fighting

Posted by Prudentinv > 2021-12-10 08:47 | Report Abuse

The market is a voting machine in short term but it is a weighing machine in long run. All due to sentiment of fear and optimism that affect an investor. Clear mind with calmness is need when analyzing the company's potential.

Posted by Prudentinv > 2021-12-10 08:54 | Report Abuse

The media cannot be trusted. It depend on the writer's intention. Pls find out who is the author and is he consistent in the article of different companies. If you say media is trust worthy, do you think CNN always report the truth and being neutral during US president campaign.

Posted by tvz32 > 2021-12-10 08:56 | Report Abuse

How come nobody is reporting that Serba has officially defaulted on 2 of their USD denominated bonds?

Posted by Trader2 > 2021-12-10 08:56 | Report Abuse

Bottom line ... the dirty business scoundrel is taking all the unsuspecting investors for a ride... big time.

Posted by Sneakpeek > 2021-12-10 09:00 | Report Abuse

Kesian investor kena game...now the best time to buy but their money stucked here.

Posted by ǷearlꙌhite > 2021-12-10 09:01 | Report Abuse

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Serba Dinamik will continue to bask proudly to the O&G regulatory, compliance and media authority
by Pearlwhite (10th December 2021, 9.00AM)

The Oil&Gas (O&G) industry has been around for a very long time and covers a array of activities, aptly named upstream and downstream. With such economic influence worldwide, it is no wonder the O&G industry is one of the most heavily regulated, monitored and self regulated industry.

In the case of fraudulent and unethical activities, this cannot be more true. There are a plethora of compliance and certification authorities to comply, in addition to government monitoring in various parts of the world.

So much so that when there is an illicit gift of RM250 (USD55) being made, it will be known by the whole industry. And this is years before the Malaysian Anti-Corruption Commission Act 2009!

In the case of Serba Dinamik with the Special Independent Review (SIR) being in the courts for alleged accounting discrepancies, this cannot be more true. This has now involved two external auditors and two regulatory bodies.

Alleged accounting discrepancies and alleged fraud do not happen at a specific point in time, but rather for a long period.

That being said, if there were alleged accounting discrepancies and alleged fraud, the external auditors and regulators would not be the first to know about it.

The O&G industry is well supported by many professional news outlets and journals (for example, Upstream, Oil&Gas Journal,etc.,) that if there were any alleged accounting discrepancies and alleged fraud, they would be the first to know.

The professional news outlets and journals are the first line of check and balance for the O&G industry.

These professional news outlets and journals, often helmed by ex-O&G professionals aided by financial specialist, are well connected with the entire supply chain, with many individuals in specific O&G companies and that of their peers, in addition to government authorities.

These connections are what makes these professional news outlets and journals so valuable and also so feared of by O&G companies. Not only that they are able to inform on the latest developments first, they will also be the first to know about alleged accounting irregularities and alleged fraud with their vast network.

So far, these professional news outlets and journals have not reported alleged accounting irregularities and alleged fraud for Serba Dinamik.

Serba Dinamik will continue to bask proudly to the O&G regulatory, compliance and media authority.

p.s. Please circulate to the Telegram/Whatsapp group and forums. Thanks.

Posted by Huangbk72 > 2021-12-10 09:11 | Report Abuse

Its official..

SD coupon payment defaulted

https://themalaysianreserve.com/2021/12/10/serba-dinamiks-coupon-payment-default-signals-wider-risks/

Lai lai ... see what kacang putih says now

Posted by m3379 > 2021-12-10 09:13 | Report Abuse

Any comment from supporters on the payment default? Is it related to MCO as well?

Posted by Sslee > 2021-12-10 09:18 | Report Abuse

Fitch Ratings Inc downgraded both Serba Dinamik’s long-term issuer rating and the May 2022 sukuk to CCC from B due recently to diminished cash reserves, stretched liquidity and heightened refinancing risk.

The bid-ask prices for the SGX listed US$300 million sukuk now is at 16-17 cents to the US dollar with no trades done even at that levels as no trader wants to take the risk.

Posted by BobAxelrod > 2021-12-10 09:18 | Report Abuse

@Huang, thanks for the cream for our morning coffee....tastes more kaw now.

Anyone still have doubt on the one way ride now, please let us help you to understand the simple English used in the News.

Posted by Prudentinv > 2021-12-10 09:19 | Report Abuse

The media can choose to only report on the strength or weakness of the company.

Posted by BobAxelrod > 2021-12-10 09:22 |

Post removed.Why?

Posted by Sslee > 2021-12-10 09:22 | Report Abuse

At 16-17 cents, SD should buy back all the US$300 million sukuk and report profit of USD 250 million. Easy money.

Posted by superrr > 2021-12-10 09:22 | Report Abuse

Retaxxded sd debt payment defaulted , said on the way paying ??

Posted by LongTermInvestor8 > 2021-12-10 09:23 | Report Abuse

So, it is official. Serba defaulted on her debt, there is nothing to say already. This is always the game plan, to drag as long as possible and just bury the company together with the SIR report so that someone dont go to prison.

I was kicked out of the Serba telegram group for telling people not to average down. I did not bad mouth karim. Oh well. Just move on.

Posted by BobAxelrod > 2021-12-10 09:24 |

Post removed.Why?

Posted by Huangbk72 > 2021-12-10 09:24 | Report Abuse

Actually... bond price is very attractive now.

Perfect for SD supporters to buy and keep supporting SD..

Posted by BobAxelrod > 2021-12-10 09:26 | Report Abuse

Wow Sslee,....the bondholders gets screwed too....hehehehe. Maybe offer at 5 cents.

Posted by Huangbk72 > 2021-12-10 09:26 | Report Abuse

@Bob

Today you get cream with coffee.

Next time add macarons and french toast

Then bring in the soup

and on and on and on...

Its a neverending course East meets West meal here.. hahhha

Posted by BobAxelrod > 2021-12-10 09:30 | Report Abuse

Waaa...Huang, you sure have far sighted eyes. How did you see I'm have french toast with English marmalade, eggs, ham and coffee for breakfast now?

Posted by superrr > 2021-12-10 09:30 | Report Abuse

repayment debt default
Sued KPMG
Sued previous independent directors
Sued i3 investor CEO
Sued Bursa, Sued SC
Sued EYS sued malicious talker in forum,
Sued Media publisher The edge and sued judge of the court.
Sued own dog
Sued own cat
Sued own duck
Sued own chicken
sue sue sue......

Apa lagi mahu ? ?

Because they can't pay the debt and faced A/C problem, so suing every where...just to confusing supporters..

Posted by Sslee > 2021-12-10 09:34 | Report Abuse

Just a question can bondholders apply court order to seize SD assets?

Posted by LongTermInvestor8 > 2021-12-10 09:35 | Report Abuse

@Sslee

Karim will then sue bondholder to stop this. When he is done, he will sue himself.

Posted by vcinvestor > 2021-12-10 09:38 | Report Abuse

@sslee bondholders can only sieze assets if the borrowing is secured. otherwise they will have to line up with the other unsecured creditors to claim back their money via liquidation of the company

Posted by alenac > 2021-12-10 09:38 | Report Abuse

Bob you din have your morning oats?

BobAxelrod Waaa...Huang, you sure have far sighted eyes. How did you see I'm have french toast with English marmalade, eggs, ham and coffee for breakfast now?
10/12/2021 9:30 AM

Posted by superrr > 2021-12-10 09:39 | Report Abuse

Sued own dog
Sued own cat
Sued own duck
Sued own chicken
sue sue sue......

Apa lagi mahu ? ?

Posted by muhfiq > 2021-12-10 09:39 | Report Abuse

How many will be sued?

Like a whole set

Sure interesting

Posted by muhfiq > 2021-12-10 09:39 | Report Abuse

Court will take long process

Not a quick remedy

Posted by superrr > 2021-12-10 09:43 | Report Abuse

This is how the so-called billionaire was formed...fake 1, fake 2, fake 3...fake fake fake.

Posted by BobAxelrod > 2021-12-10 09:44 |

Post removed.Why?

Posted by BobAxelrod > 2021-12-10 09:48 |

Post removed.Why?

Posted by alenac > 2021-12-10 09:48 | Report Abuse

Serbak going down on RM2 billions bonds default, still got time for CSR and meet the PM activities?

"Serba Dinamik, in its past filings, had stated that it has no intention to default and is committed to fulfil the payment before the grace period ends.

The US$300 million Islamic debt was issued by SD International Sukuk Ltd, an indirect wholly owned subsidiary of Serba Dinamik.

The sukuk also contains cross-default provisions with its other dollar-denominated 7% sukuk (US$180 million) due March 2025.

It would also impact Serba Dinamik’s Ringgit Islamic Commercial Paper due in May 2022 amounting to RM100 million."

https://themalaysianreserve.com/2021/12/10/serba-dinamiks-coupon-payment-default-signals-wider-risks/

Posted by Sslee > 2021-12-10 09:49 | Report Abuse

And now, the end is near
And so I face the final curtain
My friend, I'll make it clear
I'll state my case, of which I am certain

I've lived a life that's full
I traveled each and every highway
And more, much more
I did it, I did it my way

Regrets, I've had a lot
But then again, too many to mention
I did what I had to do
And saw it fall through without exemption

I planned each charted course
Each careful step along the byway
And more, much, much more
I did it, I did it my way

Yes, there were times, I'm sure you knew
When I bit off more than I could chew
And through it all, whenever there was doubt
I ate it up and spit it out
I faced it all and I fall short
And did it, did it my way

I've loved, laughed and cried
I had my fill, my share of losing
And now, as tears subside
I find that it's all so amusing

And to think I did all that
And may I say not in a shy way
No, no, not me
I did it my way

For what is a man, what has he got
If not himself, then he has naught
Not to say the things that he truly feels
And not the words of someone who know better
The record shows I took all the blows
And did it my way

Posted by getingreal > 2021-12-10 09:51 | Report Abuse

If defaulted (no news from SD) then gone case, there will be a mad scramble to go after the assets.
The scary questions high on the minds of lender's are where are the assets, do they even exist, if they do exist what are actually worth? Maybe like the accounts maybe invented. The real issue now is how many cents or fractions thereof on the dollar will the be able creditors recover and what will it cost them to recover even 1c. Very scary times indeed for bond holders, banks and creditors alike.

Posted by Huangbk72 > 2021-12-10 09:58 | Report Abuse

There is no assets worth recovering.

The figures doesnt add up. So likely mostly fabricated. Its an empty vessel