I'm a survivor of the 2015 oil price crash.

Be very careful ... this is a gruesome industry. Two oil & gas "blue chips" of 2014 are trading today at less than 5% their 2014 share price.

Don't quite understand the reason to revise the down limit from 30% to 15% on KLCI components, while up limit remains unchanged.

KLCI components are all big cap, it is rare to see them move big magnitude each day generally, except recent 2 gloves stocks which are bullish based on fundamental, still they move within 10% range daily even with high volume. 

Also, why only targeting KLCI components?

harta super laggard... this Q only wanna increase their ASP...previous Q supermax take advantage of pandemic and increase their ASP but harta wanted to maintain relationship with it's clients so didn't increase drastically lol

ahh too bad...there's a soundclip of the entire meeting & Q&A being circulated too, maybe u can go to search in serba shareholders telegram group...if ure a serious inestor u ought to check it out rather than relying on news reports 

basically they did a whole presentation of all the 'red flags' and show their answer to kpmg, to which kpmg still havent revert to this date

https://www.theedgemarkets.com/article/kpmg...s-serba-dinamik

Didn't realise that article was edited and added a lot of very interesting stuff.....

Below are the pertinent points raised by KPMG, and the responses provided by Serba Dinamik in the filing:

(A) Certain customers’ confirmation relating to sales transactions, trade receivables and material on site balances

KPMG had sent out confirmations on the aforesaid balance where only one 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 the 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.

Serba Dinamik’s actions for (A):

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.

(B) Certain transactions on purchases and trade payables balances on local supplier

Two local suppliers were incorporated on the same day.

Four local suppliers were found to have the same registered address as the two local suppliers above

Five out of the six suppliers were noted to have paid-up capital of RM100,000 each whereby each supplier is owned by an individual shareholder despite having transactions which ranges between RM60 million to RM96 million.

Serba Dinamik’s actions for (B):

Choice of local suppliers

The Government of Malaysia has implemented the Vendor Development Program (VDP) since 1998 of which the objective is to develop Bumiputera vendors to be successful in the manufacturing and services industry.

The Company became a Petronas vendor in 1997 and graduated from Petronas vendor in 2007 and subsequently, the government has appointed the Group as the anchor company for the program. The aforesaid suppliers are assessed and recommended by supply change management under the VDP.

Companies that were appointed as the group’s vendors do not require to have huge share capital as a condition to assign and fresh vendors will also be considered, through VDP.

Same address of local suppliers

Company has informed that the registered address was actually the company secretary’s office and these companies are using the same secretarial services. Arrangement on further interviews with the local suppliers 2 suppliers have agreed to meet up with KPMG. Notwithstanding, KPMG has yet to take any further action.

© Further information relating to customer and supplier in Bahrain

Office address cannot be located on physical site for the supplier and customer

KPMG has noted fax contact number of the customer as indicated in the official website is registered under one of the group’s employee but using ‘Truecaller’ application.

Serba Dinamik’s reply:

KPMG has sighted the wrong address and accordingly management had on May 6, 2021 provided KPMG with the right address.

Management had provided KPMG with the official telecommunication bill from the provider.

(D) Trade receivables balances and sales transactions for information technology contracts

KPMG had noted that there was no company registration number and registered business of the customers as indicated in their respective contracts

(i) Certain suppliers’ invoices do not have registration numbers;

(ii) Two suppliers' and two customers' company stamps did not bear registration numbers;

(iii) Differences in the names contained in legal contract agreement, invoices, user acceptance test and customers' company stamps;

(iv) Differences in addresses contained in legal contract agreement compared with customers’ websites;

(v) Six out of seven customers will make direct payment to subcontractors and the Group will receive the net amount; and

(vi) Three customers have minimal share capital and were only incorporated in 2019 and 2020, one of the customer’s principal activities did not appear to be IT related.

KPMG viewed that they are unable to determine the appropriateness of the contracts and transactions as well as the revenue and cost recognised based on the above.

Serba Dinamik’s reply:

In relation to (i) to (iv)

The management noted that KPMG had extracted the wrong addresses from the document.

Informed KPMG that there is no requirement for the company in the said jurisdictions to put the company’s registration number in the invoices but nevertheless the said number was stated at the bottom page of the invoices.

There is no requirement for the company in the said jurisdictions to put the company’s registration number in the stamp.

With regards to the different name, there is no significant differences in the name which has been highlighted e.g. “Ltd” or “Limited” / LLC against L.L.C.

In terms of legal contract agreement against the website address, (1) in one of the company, there was a slight typo in the address and; (2) for another case, the contract is as per the place of business whilst the website stated their registered office.

In relation to (v)

The mentioned subsidiary has entered into a tripartite agreement at client’s request where payment will be made directly to the sub-contractor. The company is of the view that the subsidiary acted as a principal to meet the contract’s obligations and hence, we believed that this subsidiary is able to recognise the revenue and cost associated with the contract.

In relation to (vi)

The company does not view that its customers’ profile must include huge paid-up capital in their books so long as the relevant customers are able to secure the contracts from the ultimate contract awarder and meet the legal requirements to perform such contracts. In relation to the company of which the principal activities do not appear to be IT related, there are no legal restrictions for them to participate in any other business activities.

Edited by Kathy Fong

==================================

WOW!! WOW!! WOW!!!

I am no auditor but the questions/issues raised by KPMG sounds very legit... which makes the proposal to remove the auditor simply ludicrous! 

KPMG is doing what an auditor is supposed to do. Serba can not be allowed to remove KPMG!

And the issues raised.....

1. 1 out 12 customers replied confirmation of sales transactions, trade balances and site balances. Damn... are the transactions even real?

2. Even suppliers got 'issues'. What are the chances of 2 suppliers incorporating on the same day? And these 2 new suppliers have the same address with 4 other suppliers? So 6 suppliers have same address? Damn......

3. Bahrain. Supplier and customer cannot be located??? Damn... and one of the customer website is registered under one of Serba's employee name.... Damn.....

4. And the IT division.... 
No wonder KPMG had taken bold step and raising these issues.......

Some of you guys should stop worshiping auditors. deloitte, KPMG, they all don't mean shit.

If they're always right and can do no wrong, how come both deloitte and KPMG were both involved in the 1MDB scandal?

I've seen the slides from yesterday's zoom meeting. I'm standing on karim's side for this one. If scib/kpower/serba dips again tomorrow, I'll buy more.

first of all u need to check what was being announced, bolded part clearly shows u are not correctly following what's being relayed to the public

kpmg raised red flags, nothg wrong at all, many audits raise red flags here and there but they are usually resolved in a timely manner...it is the sequence of events which followed, whereby they raise red flags to independent director(s) first, then independent director(s) which are not involved in day2day operation inform the management, and management subsequently provided evidence to kpmg within 3 days, to which kpmg has yet to revert, which caused the audit to be unable to complete hence resulting in change of fye

all the red flags including the said 12 confirmations are all already presented with their replies to kpmg in the zoom meeting yesterday for those who attended...most of the media/press did not report on these...but i do understand not many will want to dive in and listen since they dont hold or intend to buy any of karim shares, so can just jump to own assumption transmile la enron la london biscs la 1mdb la 

tomorrow most shares are predicted to drop anyways, and serbadk being embroiled in such issues, even if they do no wrong, market will react negatively...no need Einstein to figure that out 

as i said, bolded part already answered, with photos and pictures detailing how silly kpmg mistakes were, but if one already stand with kpmg, showing all these also no use because can always say forged     

Man you're really on their side huh. Do you also believe every IB report you see, and trust the target price they give out?

Dude, it's pointless to argue with immaturity who is skin deep in the stock. They will never accept the reality that they had made a terrible stock selection in Serba. Do remember one does not wrestle in the mud with a pig. Best is to ignore.

did boon warn about this company previously? I mean few months back when ppl happily chasing them.

So many here seen it coming and yet still got so many get burn by the market.

Where the guru now, leading all of their followers off a ledge.

Aha! At least someone noticed!

well we shouldn't be too happy with the meltdown. EPF still one of the majority shareholders of TG.

He also got his fingers burnt badly in another stock recently...

He bought Minda...

Either he or someone in his circle of friends is crazy over the markets...

went crazy over the share buybacks (which now probably might be made into a fantastic case study how not to do share buyback) ...
he invested into Tropicana shares...
invested so much, he can become chairman ...
then use Tropicana to buy Top Glove shares...
then himself also buy Top Glove shares...
in between he buys Minda shares....

how? gila over share market ah?

no need consultant la...
would you like to be his share broker? earn 0.005% ? cukup ah?
some people hor...
should stick to his own core business la...
hands only got 2 ...

Let me show u something hor...

TG's balance sheet...

2021 Q2


2021 Q3


2021 Q4


the latest...



apparently, someone is advising him that it's a good idea to invest in debt securities.... 
and this was the last QR jus b4 the boom

For reasons why FF voted against the board last year. This was a sign but ignored by diehard #retailers.

It is the circumstances that makes a hero. Unless he knows how to sustain, the fame will only last a moment.

Now become business guru. Really is just follow where the money is.

It’s like warren buffett after end of bull market then quit his job and become stephen covey lol.

Still can't wrap my head around Uber, Lyft, door dash, companies like this.

While it provides values to consumers' standpoint, earning is difficult. Hence narrative is needed.

Uber is burning cash for autonomous driving

Grab, super app in Asia.

Anyone has some insights?

Kossan and Harta reacts slowest to changes to ASP .... ie they are the slowest to change their ASP compared to the top 2 glove makers...
hence their profits rises/falls slower compared to other glove makers...
which means...  one really do not know YET how bad their profits will fall.....
so if one buys now, one has to be prepared for the incoming decline in profits....
would the market be gentle/kind for the poor results in the future?

yea... lots of cash on hand... but hasn't this the case for both of them?
one can invest and assume that the company could be generous with their dividends but .... end of the day that's the 'assumption' one makes...
the company could always use the cash for something else...

The chances are great that the glove sector will become a sunset industry again...

.... and glove stocks wants to start running amok again....

the reason? spike in Covid cases lo.... ( .... same old same old )