In respect of the article, it is recommended that you consult with a Certified Accountant/Chartered Accountant/Chartered Internal Auditor, Chief Financial Officer, Legal Counsel and/or Tax Advisor for advice concerning the article.
* In respect of the article, it is recommended that you consult with a Certified Accountant/Chartered Accountant/Chartered Internal Auditor, Chief Financial Officer, Legal Counsel and/or Tax Advisor for advice concerning the article.
It is not recommend that consultations be made with Certified Financial Analyst, Brokers, Traders and/or MBA/MA Finance Graduates as they are deemed not to have the necessary competency and skills to evaluate and advise on such matters discussed in the article.
Author:Ç·earlêhite | Publish date: Thu, 16 Jun 2022, 9:09 AM
Bona fide Journalism comes to Serba Dinamik’s aid
By Pearlwhite 16th June 2022 9.09AM
For the past year much have been written about Serba Dinamik. Suffice to say, what was written does not commensurate with the eventuality.
For example, the narrative of Financial Fraud and Trangressions (FAFT) committed by Serba Dinamik didn’t not lead to the eventual prosecution of the perpetrators, but it did lead to the Malaysian Anti-Corruption Commission (MACC), the prosecution themselves, to drop the case with the reason of weak evidence. What was more intriguing, was that the regulators that were involved in Serba Dinamik’s claims of FAFT, vacated their seats from the regulatory body.
Another example was when Serba Dinamik announced on 25th May 2021 of being informed by the external auditors on some matters pertaining to statutory audit, and that Serba Dinamik was in the midst of appointing an independent firm to commence a special independent review (SIR) to assess the veracity and accuracy of the matters, the a particular media company had already implied that Serba Dinamik was at fault, before the SIR began, was in progress up to until its unresolved disputed release.
This was deliberate manipulation with malice.
When manipulation with malice leads to contempt for Serba Dinamik, it will invariably suffer negative publicity and reputational loss. Such contempt continues to be evidenced with endless cycle of
Spreading of misinformation for contempt for Serba Dinamik
A myriad of unsubstantiated allegations of FAFT on Serba Dinamik
Insinuation that the Board and Management of Serba Dinamik were deceptive, malicious and were due for incarceration
Insinuation that Serba Dinamik will not continue as a going concern
Seeking to harm, intimidate, or coerce those who wish to engage to eliminate confusion and/or seek clarity and
Seeking to harm, intimidate, or coerce those who wish to those who provided facts, reason, methods and evidence contrary to unsubstantiated allegations of FAFT.
The abuse of qualified privilege was further aggravated when a particular media company made a conviction to decide the direction that Serba Dinamik should take and dictate how the capital market should function with respect of the SIR.
Suffice to say, enough is enough, and journalist themselves are fed up.
On 29th May 2022, at an event held in Melaka organised by the Malaysian News Event Agency (Bernama), a historic Melaka Declaration was signed where major media companies pledged to see into fruition the National Association of Journalist, a place where bona fide journalism shall thrive.
* In respect of the article, it is recommended that you consult with a Certified Accountant/Chartered Accountant/Chartered Internal Auditor, Chief Financial Officer, Legal Counsel and/or Tax Advisor for advice concerning the article.
It is not recommend that consultations be made with Certified Financial Analyst, Brokers, Traders and/or MBA/MA Finance Graduates as they are deemed not to have the necessary competency and skills to evaluate and advise on such matters discussed in the article.
Author:Ç·earlêhite | Publish date: Thu, 19 May 2022, 8:58 AM
Who is Serba Dinamik’s top creditor predator?
By Pearlwhite 19th May 2022 8.58AM
Serba Dinamik is moving on. Not shackled to its past, nor will it stop for anyone. One thing that it needs to get moving, is the re-instatement of its financing facilities.
Unfortunately, purposely by its syndicated loan financier, it had refused to overturn an erroneous decision it made in the past i.e. to freeze Serba Dinamik's working capital financing on the basis of unsubstantiated claims of Fraud and Financial Transgressions (FAFT) and negative publicity.
Such facilities were essential for day-to-day operations of Serba Dinamik, executing client and new client contractual obligations and financial obligations.
The loss of RM3 billion of banking facilities had also caused Serba Dinamik to fail to meet its bi-annual interest payment to its bondholders in November 2021 and that further resulted in additional downgrading of its Bond rating by numerous rating agencies.
That is to say, the financial institutions had ignored their governance and risk management procedures and shot themselves in the foot. This is a blatant disregard of their own fiduciary duties and precautionary processes as a trustee and as a financial services provider.
Details of the financial facilities are detailed here.
It is no coincidence that such blatant disregard deserves the attention and review of Bank Negara Malaysia (BMN). At stake, is the creditability of the Malaysian banking industry.
With the events that surround the fiasco at Securities Commission (SC) now resolved, perhaps the next step is for BNM to conduct a review of the behaviours of Serba Dinamik’s institutional financial managers.
BNM should start with HSBC Amanah with outstanding financing facilities by Serba Dinamik of approximately RM1.6 billion.
Datin Che Teh Ija Binti Mohd Jalil - Independent Non- Executive Chairperson HSBC Amanah
She retired from the Securities Commission of Malaysia (“SC”) where she had served for 17 years since 2000 in various capacities including Executive Director and as Advisor of Special Projects in the Chairman’s Office. During her stint in the SC, she was involved in capital market policies development and regulation, human capital development and training and education. She also co-led in the establishment of the Securities Industry Dispute Resolution Centre, Private Pension Administrator and the Capital Markets Promotion Council.
She is currently a Director of Securities Industry Development Corporation and Finance Accreditation Agency Berhad.
* In respect of the article, it is recommended that you consult with a Certified Accountant/Chartered Accountant/Chartered Internal Auditor, Chief Financial Officer, Legal Counsel and/or Tax Advisor for advice concerning the article.
It is not recommend that consultations be made with Certified Financial Analyst, Brokers, Traders and/or MBA/MA Finance Graduates as they are deemed not to have the necessary competency and skills to evaluate and advise on such matters discussed in the article.
For Serba Dinamik, there were no victories in the countless battles but a casualty of war. Ripped from Serba Dinamik were its financing facilities that were crucial for it to achieve its once upon a time peak performance and the excellent reputation it once garnered. It is now a shell of its former self.
As a result, the AGC contends that compounds were the preferred method not because Serba Dinamik had a lot of explaining and counter evidence to prove, but the Securities Commission’s (SC) circumstantial evidence is not up to the standard required to press criminal charges. Going by SC’s track record with successful FAFT convictions that took years, it would also be a waste of the Courts time and resources if SC were to rely on circumstantial evidence. If that were the case, one would expect endless re-amendment and re-submission of its evidence.
Unfortunately for Serba Dinamik, the compounds also means that it had to part ways with financial resources that were critical to Serba Dinamik’s operations for something that it was innocent all along.
This is corroborated by the AGC that “allow the company to focus on rectifying errors and effecting immediate compliance with regulators such as Bursa Malaysia and the SC as it had clearly done so in the past without fault”.
There will be of course, lessons learnt from this and does not apply solely to Serba Dinamik.
Stakeholders too have to take responsibility and accountability for what had transpired. In Serba Dinamik’s case,
How would SC investigate unsubstantiated claims of FAFT in the future?
How would SC use its relationship with the media to present balanced reporting?
How would Bursa Malaysia (BM) provide up-to-date regulatory information?
How would Bursa Malaysia (BM) redeem Serba Dinamik for bestowing it the PN17 status?
What will the financial institutions, who suspended Serba Dinamik’s financing facilities due to negative publicity and unsubstantiated claims of FAFT, do now? Will there be a recourse? After all, if it had not been suspended, Serba Dinamik’s financial woes would not have happened. Financial institutions shot themselves in the foot when it made decisions based off negative publicity.
Despite all the persecution it faced, not only from the financial regulatory bodies, financial institutions, media, investors, general public and the current dissatisfaction towards the AGC’s rational for Serba Dinamik’s compounds, the work to re-earn its credibility continues.
In short, Serba Dinamik has consistently and unrelentingly shown its openness and willingness to resolve the issues put forward since May 2021. That is the priority and Serba Dinamik is moving forward. It is not shackled to its past, nor will it stop for anyone.
The question is, are the stakeholders willing to do so, not only for Serba Dinamik, but for themselves too.
* In respect of the article, it is recommended that you consult with a Certified Accountant/Chartered Accountant/Chartered Internal Auditor, Chief Financial Officer, Legal Counsel and/or Tax Advisor for advice concerning the article.
It is not recommend that consultations be made with Certified Financial Analyst, Brokers, Traders and/or MBA/MA Finance Graduates as they are deemed not to have the necessary competency and skills to evaluate and advise on such matters discussed in the article.
MiaoMiao7Where you wrote this article? From tanjung rambutan? What about the fake 59 stamps in serba office?
18/05/2022 9:52 AM
nicholas99tipu orang kua. i see title also dont want read jor. go in prove i am right. more boring
18/05/2022 9:58 AM
DickyMeNo need to pay attention to companies without any integrity. Save your money and find well managed stocks. It will be easy on your health and pocket. Just avoid dubious stocks.
18/05/2022 9:59 AM
stockraiderThere is a big margin of safety hidden in sapnrg mah!
U DEFINITELY STAND A BETTER CHANCE IN SAPNRG THAN SERBA LOH!
Posted by stockraider > 1 month ago | Report Abuse
Last time bail out no hair cut for banks.
This time bail out got hair cut elements which is positive for sapnrg mah!
Sapura Energy’s group chief executive officer Anuar Mohd Taib said it has received “majority support” from its nine lenders to start negotiations.
“Sapura Energy can no longer sustain its operations under its current debt load, which demands almost half a billion ringgit in interest payments annually. The faster we can restructure our debt, the better,” he was quoted as saying.
The report said the nine banks may have to take a massive 75% haircut under the proposed plan.
As mentioned earlier all the banks will get back some of the loan money on sapnrg restructuring loh!
The quantum indicative hair cut is 75%.....but i think the banks will settle for hair cuts between 30% to 50% loh!
As almost all the loans given to sapnrg are fully provided for losses.....the banks will get positive profit results should the loan is restructured mah!
On the other hand sapnrg should able to gain rm 3b to rm 5b, that will mean 17 sen to 29 sen in write back concession from the bank....still very sizable gain although they mentioned they wanted 7.5b or 44 sen hair cuts loh!
A win win situation for all mah!
18/05/2022 10:34 AM
SsleeStockholm syndrome isn’t a psychological diagnosis. Instead, it is a way of understanding the emotional response some people have towards a captor or abuser.
Sometimes people who are held prisoner or are subject to abuse can have feelings of sympathy or other positive feelings toward the captor. This seems to happen over days, weeks, months, or years of captivity and close contact to the captor.
Someone who has Stockholm syndrome might have confusing feelings toward the abuser, including: Love Sympathy Empathy Desire to protect them
Stockholm syndrome might also cause the hostage to have negative feelings toward the police or anyone who might try to attempt a rescue.
19/05/2022 8:48 AM
stockraiderThe most recent raider recommendation on sapnrg at 3.5 to 4.0 sen make alot of monies loh! It is all there and well documented mah!
Lu tau boh ??
Posted by Tobby > 18 hours ago | Report Abuse
Raider! Maybe it's time for you to face the mirror! I mean, tell me, what stock have your recommended actually make money! All i know is that you always screaming and shouting promoting them at the peak!
Author:Ç·earlêhite | Publish date: Fri, 11 Mar 2022, 7:09 PM
How misinformation about Serba Dinamik was perpetuated – A case study
By Pearlwhite 11th March 2022 7.08 PM
Ever since 25th May 2021, Serba Dinamik endured the relentless onslaught of questionable media reporting of its Special Independent Review (SIR). To perpetuate this narrative, the help of the unwittingly uninitiated were enlisted to facilitate this misinformation rhetoric.
The army of market anchovies
Whilst capital market regulations are in place to provide all stakeholders with an equal footing to market access and information, there are certain aspects of it where it cannot exert control. One of them are the investors. There are many kinds of investors, but we are going to focus on a particularly large segment, which are called “market anchovies”. So what are market anchovies?
A popular and often acceptable belief of a market anchovie is an investor that has no control over the stock pricing of a company and/or control over the strategic and/or operational direction of the company. They are at mercy of the “powers to be” in the financial markets and are often portrayed by themselvesas “victims”.
However, contrary to popular belief, this is not the case as market anchovies exhibit certain characteries.
Market anchovies hate being imprisoned by time
In times of crisis, market anchovies are unable to “escape” from negative events, despite market processes permitting them to do so. This immobility, irrespective of the sums involved or whether it represents a substantial part of their wealth or vice versa, is viewed by them as an involuntary imprisonment of their investments. They are unable to comprehend that stock suspensions do occur, albeit rare.
Market anchovies are needy and crave validation from 3rd parties
This is a classic case where they are unable to make appropriate, sufficient and accurate financial decisions with what is at hand. Despite the best efforts by the capital market regulators to level the playing field with appropriate disclosures and market reports, and the carry over knowledge from their education and work experience, they exhibit significant lack of confidence (action disconnect) to execute their wishes, unless compelled by 3rd party information for analyses and 3rd party decisions (more likely from another market anchovie).
Market anchovies are not focused and are easily spooked
Market anchovies are very sensitive to external factors, however minute, like a school of anchovies being directed in aimless direction by a predator fish (shark). In the case of Serba Dinamik, misinformation had thrown them into disarray with various issues the likes of bond repayments, stock suspension, judicial management, negative trending topics about Serba Dinamik and so on. It is a constant “moving of the goal posts” to stir emotional controversy, when the issue pertaining to Serba Dinamik only relates to SIR.
Market anchovies fear of the truth – they take the easy way out as long as it suits them
They have a fear of conducting fact checking. Even with a myriad of 3rd party sources of information at hand, any anomalies of information are dismissed as inaccuracies and refuse to reconcile any differences in them. Despite the capital markets easy accessibility, market anchovies do not engage with market regulators to obtain information or confirmation, see Serba Dinamik hidden nominees and hidden proxy(ies) will reveal themselves. What is there to fear? No penalties would ever befall on them if they did approach the capital market regulators for clarification and confirmation.
Market anchovies bring nothing to the table
Being reliant and craving validation from 3rd parties, they bring nothing to the table; not even in the form ideas and/or plans. In fact, they only harbour negative criticism and accomplish nothing at the end of the day.
Market anchovies blames everyone but themselves for their predicament
They believe it is their rightful privilege to receive only what benefits them. They take no accountability for the decisions that they have made and blame it on everyone else. There is no sense of consequence.
Market anchovies are self-proclaimed soothsayers
Shocking as it might be given the abovementioned characteristics, they are good at making prophecies without providing any evidence or thought processes. Common words used are “mark my words”, “proven true again and again”, “only 1 way to go.. said this long time ago”.
Market anchovies are whoremongers (a 304)
Considering that these market anchovies had so much source material (as they have claimed), it would have been easy to submit such facts, reasons, methods or evidence used to commit Fraud And Financial Transgressions (FAFT). For the past 10 months, every possible opportunity and encouragement were availed to claimants to provide facts, reasons, methods or evidence to support their claims.
Nevertheless, they gave no answer; not even 1 fact, reason, methods or evidence.
Why? Because being indignant (outraged) about claims of FAFT is not evidence of FAFT i.e., they did not have any but contempt for Serba Dinamik.
The efficacy of exploiting market anchovies
The widespread condemnation of Serba Dinamik witnessed by the endless cycle of
Spreading of misinformation for contempt for Serba Dinamik
A myriad of unsubstantiated allegations of FAFT on Serba Dinamik
Insinuation that the Board and Management of Serba Dinamik were deceptive, malicious and were due for incarceration
Insinuation that Serba Dinamik will not continue as a going concern
Seeking to harm, intimidate, or coerce those who wish to engage to eliminate confusion and/or seek clarity and
Seeking to harm, intimidate, or coerce those who wish to those who provided facts, reason, methods and evidence contrary to unsubstantiated allegations of FAFT.
is proof that this type of media exploitation of market anchovies is highly effective in spreading misinformation.
This is because market anchovies permeate in the general population (who have no interest of Serba Dinamik). Human behaviour has been shown to be skewed towards negativity and the spread of baseless negative information since time immemorial. Gossip is part of human nature. The unfortunate part is that they represent the masses or as capital market regulators calls it "the public interest".
Here some quotes from several incidences not too long ago of the typical behaviour of anchovies from an esteemed market observer.
“All the angry commentators of my articles on Gadang are losing money and they refused to see the truth. “
“All the losers must look at the truth as explained by stockmanmy's article. Stockmanmy is a chartered accountant who is a very good stock analyst. I have my highest respect for him.”
“Pak Lah, the real reason why I was so sarcastic is because I was annoyed by one stupid idiot hiding behind the name koonpastsix who made an abusive comment. My intention in writing this article is help investors understand Mudajaya's Indian power project and to take advantage of this latest news to make money.”
* In respect of the article, it is recommended that you consult with a Certified Accountant/Chartered Accountant/Chartered Internal Auditor, Chief Financial Officer, Legal Counsel and/or Tax Advisor for advice concerning the article.
It is not recommend that consultations be made with Certified Financial Analyst, Brokers, Traders and/or MBA/MA Finance Graduates as they are deemed not to have the necessary competency and skills to evaluate and advise on such matters discussed in the article.
MabelVery interesting observation Snow White. Thanks for sharing..
Anchovies resemble herring superficially but have a larger mouth and a rounded belly. They are small fish; few exceed 20 cm in length and most live 3 years or less.
Thanks God we Malaysian love them so much. They have a smooth texture, no bones and are easily melted. They come in flavourless oil and have fantastic fish flavour without too much saltiness. They'd work well in salads or green sauces..
Anchovies are rich in omega-3 fatty acids, which offer powerful benefits for your heart. Studies show they may reduce your triglyceride levels, slow the build-up of plaque in your arteries, and reduce your blood pressure. They may also lower your risk of stroke by reducing blood clotting.
Small fish like sardines, mackerel, and anchovies contain the same key brain-building nutrients found in larger fish. And small fish have the added benefit of, well, being small.
Anchovies have so much love to give — they're salty, briny, and full of umami-rich flavour. What's so magical about them is that they actually disintegrate when cooked..
That mouth-watering umami found in dishes that use cured anchovies comes from the glutamate developed in the salting process. During months of lying-in salt, the fish are transformed by enzymes and good bacteria into a salty, briny powerhouse, with little to no fishy taste left behind..
Author:Ç·earlêhite | Publish date: Fri, 18 Feb 2022, 10:08 AM
Serba Dinamik on track to come out winning
By Pearlwhite 18th February 2022 10.08AM
Despite all the challenges faced by Serba Dinamik since 25th May 2021 when associated with terminologies the likes of “KPMG raised audit issues” and thereafter a myriad of terms like “in the eye of the storm”. Reviewing what had transpired so far, Serba Dinamik is doing very well, quite frankly.
One thing for sure, with approximately RM3.1 billion of raised audit issues by KPMG resolved and with EY “casting doubts”, “raised concerns” and “found anomalies” on RM1.438 billion, which are neither true, false and conclusive, it is a matter of time, that this too will be resolved, just as in the case of KPMG.
That is the track record in Serba Dinamik.
Of course, a particular media company and the Malaysian capital market regulators do not want, in the matter of public interest and maintaining fair and orderly capital market, to be disclosed
the resolved RM3.1 billion;
the errors in opinion that KPMG had made in its assessment;
on top of having
permitted and continue to permit investor shareholding disclosure in-adequacies;
failed to investigate and disclose proxy ownership in Serba Dinamik;
caused Serba Dinamik to be listed as a PN17 company;
at its decision to suspend Serba Dinamik being questioned by and lobbied by a particular media company and Minority Shareholder Watch Group (MSWG) CEO lobbying to revoke the suspension.
It shows “making allegations before substantiation” does not benefit any party. But is it good for market gossip.
However, lessons learned for the particular media company and Malaysia capital market regulators is to continue to have FFU disclosed.
Scope
Issue
KPMG Amount
(RM’mil)
Difference (RM’mil)
In relation to Scope 1, in respect of in respect of the highlighted concerns raised by KPMG in the s 320 Report concerning 11 identified customers of the Company, EY, following investigations, casts doubt on the veracity of the transactions with the 11 identified customers. The total sum involving the 9 out of the 11 identified customers are in excess of RM435 million.
The word “cast doubt”.
3,541*
-3,106
In relation to Scope 2, in respect of the highlighted concerns raised by KPMG in the s 320 Report concerning 6 identified local suppliers, EY, following investigations, raised concerns on the veracity of the transactions with the 6 identified local suppliers. The recorded transactions and other amounts are in excess of RM638 million.
The word “raised concerns”.
481*
+157
In relation to Scope 3, in respect of the highlighted concerns raised by KPMG in the s 320 Report concerning the veracity of IT contracts entered into by the Company’s subsidiary, SDIT International Limited, with 6 identified customers and 2 identified suppliers and the inability of KPMG to determine the appropriateness of the contracts / transactions and to ascertain the appropriateness of the revenue and cost recognised, EY, following investigations, found anomalies with respect to the contracts with 5 of the identified customers and 1 of the identified suppliers. In addition, EY in conducting the SIR also found anomalies with respect to other customers and suppliers not identified by KPMG. The total sum involved is in excess of USD 76 million.
The word “found anomalies”.
393**
-RM73
In relation to Scope 4, in respect of the highlighted concerns raised by KPMG in the s 320 Report in relation to 1 identified customer and 1 identified supplier in Bahrain, EY, following investigations, found that the Bahrain customer could be related to the Company and that EY also casts doubt with respect to the veracity of the transactions with the Bahrain supplier. Invoices and delivery orders of the Bahrain customer is in excess of USD 12 million.
* In respect of the article, it is recommended that you consult with a Certified Accountant/Chartered Accountant/Chartered Internal Auditor, Chief Financial Officer, Legal Counsel and/or Tax Advisor for advice concerning the article.
It is not recommend that consultations be made with Certified Financial Analyst, Brokers, Traders and/or MBA/MA Finance Graduates as they are deemed not to have the necessary competency and skills to evaluate and advise on such matters discussed in the article.
Author:Ç·earlêhite | Publish date: Wed, 16 Feb 2022, 7:38 PM
Serba Dinamik : Why the Factual Findings Update (FFU) is an embarrassment to Malaysia (Updated)
By Pearlwhite 16th February 2022 7.38PM (Updated 17th February 10.38AM)
Solving Serba Dinamik’s unfortunate circumstance would not be a hard thing to do. However, the decision to disclose the FFU have proven to be an embarrassment not for Serba Dinamik, but for Malaysia. Here is why.
The FFU is inconsistent with the standards set by the Malaysian capital markets regulators
Capital markets are all about timely and efficient transmission of information and good corporate governance, supported by accredited assurance authorities, to give all stakeholders equal access to information so that no one party is disadvantaged from making the appropriate choices before them.
When it comes to the disclosure of information, the following are the types of information in Bursa Malaysia that are assured by 3rd parties i.e. accredited auditors, underwriters, legal, financial institutions and relevant governance agencies including the market regulators, either directly and/or indirectly.
Bursa Malaysia Company Announcement Categories
Requiring 3rd party assurance to verify and conclude without the possibility of dispute
Additional Listing Announcement / Subdivision of Shares
✔
Annual Audited Account
✔
Annual Report
✔
Change of Corporate Information
✔
Changes in Shareholdings
✔
Circular/Notice to Shareholders
✔
Dealings in Listed Securities (Chapter 14 of Listing Requirements)
✔
Delisting of Securities
✔
Entitlements
✔
Expiry / Maturity / Termination of Securities
✔
Financial Results
✔
General Announcement
✔
General Meetings
✔
IPO Announcement/Admission to LEAP Market Announcement
✔
Important Relevant Dates for Renounceable Rights
✔
Investor Alert
✔
Listing Circulars
✔
Listing Information and Profile
✔
Prospectus
✔
Reply to Query
❌
Shares Buy Back
✔
Special Announcements
✔
Take-over Offer
✔
Transfer of Listing
✔
Unusual Market Activity
❌
In all instances of information disclosed, it must be factually appropriate, accurate and complete and are consistent with the standards as expected from assurance providers. In other words, the information disclosed have been finalised and cannot be revised. It cannot be “interpreted differently”, “mis-interpreted” or “be open to interpretation”.
The FFU by Ernst & Young Consulting (EY) pursuant to the Special Independent Review (SIR) however, can be “interpreted differently”, “mis-interpreted” or “be open to interpretation” because it has not been finalised and/or is incomplete. This was re-affirmed by Judicial Commissioner Wan Muhammad Amin Wan Yahya’s ruling “The information sought to be announced [in the FFU] is material and does not depend whether it is true, false or conclusive.”
Scope
Issue
KPMG Amount
(RM’mil)
Difference (RM’mil)
In relation to Scope 1, in respect of in respect of the highlighted concerns raised by KPMG in the s 320 Report concerning 11 identified customers of the Company, EY, following investigations, casts doubt on the veracity of the transactions with the 11 identified customers. The total sum involving the 9 out of the 11 identified customers are in excess of RM435 million.
The word “cast doubt”.
3,541*
-3,106
In relation to Scope 2, in respect of the highlighted concerns raised by KPMG in the s 320 Report concerning 6 identified local suppliers, EY, following investigations, raised concerns on the veracity of the transactions with the 6 identified local suppliers. The recorded transactions and other amounts are in excess of RM638 million.
The word “raised concerns”.
481*
+157
In relation to Scope 3, in respect of the highlighted concerns raised by KPMG in the s 320 Report concerning the veracity of IT contracts entered into by the Company’s subsidiary, SDIT International Limited, with 6 identified customers and 2 identified suppliers and the inability of KPMG to determine the appropriateness of the contracts / transactions and to ascertain the appropriateness of the revenue and cost recognised, EY, following investigations, found anomalies with respect to the contracts with 5 of the identified customers and 1 of the identified suppliers. In addition, EY in conducting the SIR also found anomalies with respect to other customers and suppliers not identified by KPMG. The total sum involved is in excess of USD 76 million.
The word “found anomalies”.
393**
-73
In relation to Scope 4, in respect of the highlighted concerns raised by KPMG in the s 320 Report in relation to 1 identified customer and 1 identified supplier in Bahrain, EY, following investigations, found that the Bahrain customer could be related to the Company and that EY also casts doubt with respect to the veracity of the transactions with the Bahrain supplier. Invoices and delivery orders of the Bahrain customer is in excess of USD 12 million.
In other words, the Malaysian capital markets regulators had made an exception to the rule to disclose the FFU so that relevant parties could make the appropriate choices before them. A choice has to be made from information that is neither true, false or conclusive.
The judgement of the Court on the FFU omitted substance over form but is correct with respect to materiality and public interest
In Judicial Commissioner Wan Muhammad Amin Wan Yahya’s ruling, “Bursa is entitled under Section 11 of CMSA to give the directive in order to uphold and maintain a fair and orderly securities market to safeguard public and investors' interests as well as take the appropriate action under the MMLR for the purpose of monitoring and ensuring compliance of MMLR,”.
Whilst materiality in the FFU is a valid reason, the court has seemingly omitted the consideration of substance over form. FRS 5 Reporting the Substance of Transactions dictates that an entity’s financial statements should reflect the substance of the transactions entered into. It should reflect the underlying realities of accounting transactions.
In other words, the information should not merely comply with the legal form in which they appear but should not hide its true intent, which would mislead the readers of the FFU.
The FFU which is neither true, false or conclusive may be legally valid (in form), however, the substance of it is that the FFU can be “interpreted differently”, “mis-interpreted” or “open to interpretation” when its readers are compelled to make a choice from it.
The FFU goes against a fair and orderly market and would continue to perpetuate unsubstantiated claims of FAFT (“Fraud and Financial Transgressions”)
When Serba Dinamik announced on 25th May 2021 of being informed by the external auditors on some matters pertaining to statutory audit, and that Serba Dinamik was in the midst of appointing an independent firm to commence a special independent review (SIR) to assess the veracity and accuracy of the matters, the media had already implied that Serba Dinamik was at fault, before the SIR began, was in progress up to until its unresolved disputed release.
When the FFU which is neither true, false or conclusive, may be legally valid (in form) and can be “interpreted differently”, “mis-interpreted” or “open to interpretation” in the absence of “closure”, it also means zero probability of determining the veracity and credibility of such information.
This is deliberate manipulation with malice.
When manipulation with malice leads to contempt for Serba Dinamik, it will invariably suffer negative publicity and reputational loss. Such contempt continues to be evidenced with endless cycle of
Spreading of misinformation for contempt for Serba Dinamik
A myriad of unsubstantiated allegations of FAFT on Serba Dinamik
Insinuation that the Board and Management of Serba Dinamik were deceptive, malicious and were due for incarceration
Insinuation that Serba Dinamik will not continue as a going concern
Seeking to harm, intimidate, or coerce those who wish to engage to eliminate confusion and/or seek clarity and
Seeking to harm, intimidate, or coerce those who wish to those who provided facts, reason, methods and evidence contrary to unsubstantiated allegations of FAFT.
Source : Facebook - Would the FFU perpetuate unsubstantiated claims of FAFT?
Source : KLSEi3 forum - Would the FFU perpetuate unsubstantiated claims of FAFT?
The sorry state of affairs of the Malaysian capital market
By requiring Serba Dinamik to disclose the FFU (which is against the Malaysian capital market rules) that Serba Dinamik vehemently disagreed, led to its suspension. That later ensued with a particular media company and Minority Shareholder Watch Group (MSWG) CEO lobbying for the lifting of the suspension.
Furthermore, during the court hearing on 17th January 2022, Bursa's Datuk Loh Siew Cheang concurred with Serba Dinamik's counsel Mak Lin Kum that " that due to the suspension, Serba Dinamik is listed as a PN17 company".
Could this be another sorry state of affairs of the Malaysian capital market?
permitted and continue to permit investor shareholding disclosure in-adequacies;
failed to investigate and disclose proxy ownership in Serba Dinamik.
and let perpetuate inaccurate market information about Serba Dinamik.
"If Serba Dinamik's shares had been fully disposed by the Malaysian government agencies and pension funds, that is sufficient proof that these entities decided to do so because they had no confidence in Serba Dinamik. By default of their actions, it signalled to the capital markets that the continuing misinformation rhetoric, unsubstantiated claims of FAFT, contempt for Serba Dinamik and negative publicity must be true."
The decisions and actions undertaken by the Malaysian capital market regulators are bewildering to say the least, but as one might put it, if one were to look at the results, its not good.
In summary, the Malaysian capital markets regulators, in respect to Serba Dinamik, had
permitted and continue to permit investor shareholding disclosure in-adequacies;
failed to investigate and disclose proxy ownership in Serba Dinamik;
caused Serba Dinamik to be listed as a PN17 company;
at its decision to suspend Serba Dinamik being questioned by and lobbied by a particular media company and Minority Shareholder Watch Group (MSWG) CEO lobbying to revoke the suspension.
* In respect of the article, it is recommended that you consult with a Certified Accountant/Chartered Accountant/Chartered Internal Auditor, Chief Financial Officer, Legal Counsel and/or Tax Advisor for advice concerning the article.
It is not recommend that consultations be made with Certified Financial Analyst, Brokers, Traders and/or MBA/MA Finance Graduates as they are deemed not to have the necessary competency and skills to evaluate and advise on such matters discussed in the article.
AlanNgaReport has been filed to authorities against pearlwhite for continuous false statements published.
Respond I obtained from the authority today: "Hi Alan,
Thank you for your complaint lodged. As we are aware, the user pearlwhite had lost substantial amounts investing in a company and has been officially been declared of unsound mind.
Due to the reason above, we decided not to pursue the matter further and allow him to continually write one sided articles that no readers would believe but would bring self pleasure to himself.
It is of the best interest if he continues to pleasure himself with those articles, as he will achieve a self of fulfilment by writing these articles.
Note that after writing these articles, at the end of the day during judgement time, he will come to self realization that he had actually not only lost his mind, but also lost all his life savings.
Thank you
Captain Ooi"
16/02/2022 8:28 PM
RexKingSD doing fraud accounting and Si Karim con investor money for personal gain and now you say FFU is an embarrasement to Malaysia. I believe you had stuck alot money in SD and and lost your mind. Better you go primary school study again. So pathetic and pity for you.
Author:Ç·earlêhite | Publish date: Mon, 7 Feb 2022, 10:38 AM
Serba Dinamik hidden nominees and hidden proxy(ies) concealed themselves from view at the AGM
By Pearlwhite 7th February 2022 10.38 AM
The highly anticipated ruckus at Serba Dinamik’s AGM on 31st January 2022 did not materialise. What also didn’t materialise was that the hidden nominees and hidden proxy(ies) of Serba Dinamik revealed themselves. Why?
To protect the capital market regulators which had protected and concealed the identities of the certain nominees and proxy(ies) in the first place
If they had voted (either for, against or abstained), as revealed and fact checked by independent media here, Serba Dinamik hidden nominees and hidden proxy(ies) will reveal themselves, would have exposed them and the capital market regulators to the vested interest in determining the outcome to the on-going saga with Serba Dinamik.
Many did not realise that despite the attendance of more than 500 attendees, only approximately 390 voted (for, against, abstained). A total of 110 to 210 attendees did not utilise the voting system to avoid being accounted for. In essence, they attended as spectators.
We know that the Employees Provident Fund Board, Kumpulan Wang Persaraan (Diperbadankan), Permodalan Nasional Berhad (PNB), SBB Dana-Al-Ihsan, Lembaga Tabung Haji and the unknown hidden proxy holds approximately 1.12185 billion shares or approximately 30.16% of Serba Dinamik.
No.
Investor Name
% O/S
Position (M)
1
Employees Provident Fund Board
4.97%
185.08
2
Kumpulan Wang Persaraan (Diperbadankan)
4.53%
168.85
3
Permodalan Nasional Berhad (PNB)
4.34%
161.75
4
SBB Dana-Al-Ihsan
1.45%
54.22
5
Lembaga Tabung Haji
1.39%
51.95
6
Unknown hidden proxy
13.48%
500.00
To gauge the level of support for the Board of Directors / Management of Serba Dinamik prior to their request for an EGM and to avoid disrupting Serba Dinamik’s Business
From the results of the vote, the following can be noted.
Approximately 1 billion shares (out of the approximately 1.4 billion shares) from the 3 Executive Directors were utilised for the AGM.
More than 2/3 of attending retail investors (approximately 220 million out of 250 million shares) supported Serba Dinamik - Ordinary Resolution 6 - Proposed Renewal of Shareholders' Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature.
A mixed number of attending retail investors had varying support for different directors – Ordinary Resolution 1-3.
It can be deduced that the Board of Directors and Management of Serba Dinamik would have approximately 1.6 billion (1.4 billion plus 200 million from retail) of share support against approximately 1.1 billion shares from the hidden nominees and hidden proxy(ies). That is a total of 2.7 billion of shares held by attendees that day.
The actions of the concealed attendees suggest that Serba Dinamik's business is important to them and is worth preserving. Rather, they have their sights on their Board of Directors and Management of Serba Dinamik (as witnessed in the voting for Ordinary Resolution 1-3).
* In respect of the article, it is recommended that you consult with a Certified Accountant/Chartered Accountant/Chartered Internal Auditor, Chief Financial Officer, Legal Counsel and/or Tax Advisor for advice concerning the article.
It is not recommend that consultations be made with Certified Financial Analyst, Brokers, Traders and/or MBA/MA Finance Graduates as they are deemed not to have the necessary competency and skills to evaluate and advise on such matters discussed in the article.
observatoryAfter another wrong prediction, here comes yet another story. If the non existent "masterminds" don't want to show themselves, why did they order all their proxies to attend in the first place?
Author:Ç·earlêhite | Publish date: Wed, 19 Jan 2022, 7:28 PM
Serba Dinamik's hidden nominees and hidden proxy(ies) will reveal themselves
By Pearlwhite 19th January 2022 7.28PM
When Bursa Market Place, a division within Bursa Malaysia Securities Berhad, replied to an emailed request of confirmation of Serba Dinamik’s top 10 investor (see below), itvigorously maintains the accuracy and completeness in it as correct. If the details of depositors are confirmed by the entity that regulates and manage them, there is no doubt as to the authenticity of the list, even if other trusted third-party sources of information proves otherwise.
So, what did Bursa Market Place confirm? It confirmed that the list is:
Correct with regards to the investors name, % O/S, Position (shares), Position Chg (M), Value (M USD), Filing Date and Filing Source
Updated with the latest information
Valid even till the date of the publication of this article
So, it cannot be challenged that Employees Provident Fund Board holds 4.97%, Kumpulan Wang Persaraan (Diperbadankan) holds 4.53%, Permodalan Nasional Berhad (PNB) holds 4.34%, SBB Dana-Al-Ihsan holds 1.45% and Lembaga Tabung Haji holds 1.39%.
The question is, how did this misinformation rhetoric, unsubstantiated claims of Fraud and Financial Transgressions (FAFT), contempt for Serba Dinamik and negative publicity perpetuate in the media and in various financial platforms for the past 7 months?
Exploits to the inadequate disclosure requirements of beneficial ownership
Failure to emphasise total beneficiary ownership (subject to satisfying substantial shareholder criteria)
Not known to many, there are 2 kinds of beneficiary lists derived from the record of depositors.
Bursa Market Place’s top 10 investors list (no substantial shareholder criteria)
The information in this list details the beneficiary's consolidated (total) ownership directly held and held under nominees. Which is to say, it is a total the beneficiary holds, irrespective of the way it is being held, direct or nominee. There is only one beneficiary and is not subject to satisfying substantial shareholder criteria.
Shareholders lists published in various financial platforms and Annual Reports
The information in this list details the beneficiary's ownership which is directly held and held under nominees and they way they are held are treated as separate beneficiaries and is subject to satisfying substantial shareholder criteria. This is the default list used by various financial platforms and Annual Reports.
As an example, XYZ Berhad is held by the National Trust Board (NTB) with 1 billion shares, representing 10% of XYZ’s shareholdings. NTB holds 700 million shares directly, with 300 million shares held by 2 nominees, the Northern Bank with 250 million shares and the Southern Bank with 50 million shares.
Other Shareholder B holds 30 million shares of XYZ Berhad directly and in 2 different nominee accounts at 260 million shares and 110 million shares.
The list is disclosed as follows:
Bursa Market Place’s top 10 investors list in XYZ Berhad
No.
Investor Name
% O/S
Position (M)
1
National Trust Board
10.000%
1,000
2
Other Shareholders A
6.000%
600
3
Other Shareholders B
4.000%
400
XYZ Berhad substantial shareholders listpublished in various financial platforms and Annual Reports
No.
Investor Name
% O/S
Position (M)
1
National Trust Board
10.000%
1,000
2
Other Shareholders A
6.000%
600
XYZ Berhad top 30 shareholders list published in various financial platforms and Annual Reports
No.
Investor Name
% O/S
Position (M)
1
National Trust Board
7.000%
700
2
Other Shareholders A
6.000%
600
35
Other Shareholders B (nominee 1)
2.600%
260
38
Northern Bank (nominee for National Trust Board)
2.500%
250
60
Other Shareholders B (nominee 2)
1.100%
110
90
Southern Bank (nominee for National Trust Board)
0.500%
50
132
Other Shareholders B
0.300%
30
One can appreciate, from the example, the difference in information portrayed, the resulting perceptions and conclusions arrived for Other Shareholder B if the beneficiary and/or nominees were not in the substantial shareholder list and top 30 shareholders list so frequently used in by various financial platforms and Annual Reports.
For Serba Dinamik, this information mismatch can be seen for the:
Employees Provident Fund Board with 4.97%
Kumpulan Wang Persaraan (Diperbadankan) with 4.53%
Permodalan Nasional Berhad (PNB) with 4.34%
SBB Dana-Al-Ihsan with 1.45% and
Lembaga Tabung Haji with 1.39%.
that represents 16.40% of Serba Dinamik’s shares that do not appear in the 30 shareholders list (apart from 0.279% being held by Lembaga Tabung Haji).
Failure to require filings when shareholdings are distributed to nominees or vice versa
The current rules do not require filings to changes when shareholdings are distributed to nominees or vice versa. With 1), it had been perceived that the Malaysian government agencies and pension funds no longer have any interest in Serba Dinamik.
Additionally, with no requirement to disclose consolidated (total) beneficiary ownership, gives the perception that when filing dates were months ago, the top 10 investors list by Bursa Market Place is deemed inaccurate by the uninitiated masses.
The narrative for this exploit can be summed up as follows:
"If Serba Dinamik's shares had been fully disposed by the Malaysian government agencies and pension funds, that is sufficient proof that these entities decided to do so because they had no confidence in Serba Dinamik. By default of their actions, it signalled to the capital markets that the continuing misinformation rhetoric, unsubstantiated claims of FAFT, contempt for Serba Dinamik and negative publicity must be true."
Had there been a requirement to disclose the top 10 (or top 30) investors based on their total beneficiary, irrespective as to whether substantial shareholding requirements are met, this exploit would not have happened.
The question is, why did the capital market regulators permit and continue to permit it to happen, knowing well that this inadequacy is being exploited?
Failure to investigate proxy ownership
On 1st June 2021, 13.51% or 500 million shares of Serba Dinamik were traded just before 10.00am to a buyer. Since then, there had been no disclosure from relevant parties as to who this buyer is.
The rational for disclosure is that to trade 500 million shares of Serba Dinamik worth approximately RM400 million, would require significant capital that realistically, no individual can provide for unless that it is under an entity and/or nominee entity.
This is rather surprising as this particular trade (the buyer and seller) can be easily identified by the capital market regulators’ Surveillance Unit.
Considering that proxy ownership is a serious offence under the following relevant laws and rules:
it begs to wonder why this issue was not investigated and disclosed.
Is the failure or more accurately termed, refusal to investigate and disclose the proxy ownership one of the many factors that the ex-Chairman of Serba Dinamik, Datuk Seri Mohamed Farid Abu Hassan, refers to as biased regulatory prosecution aimed towards Serba Dinamik?
The sorry state of affairs of the Malaysian capital market
The reality is that the continuing exploitation of the inadequate disclosure requirements of beneficial ownership, the refusal to investigate and disclose the proxy ownership are attempts by the capital market regulators to protect and hide the identities of certain nominees and proxy(ies).
In addition, it also permits and continues to permit misinformation rhetoric, unsubstantiated claims of FAFT, contempt and negative publicity for Serba Dinamik which is essential to garner support from retail investors who are easily influenced.
It seems that the capital market regulators have an interest to decide the fate of Serba Dinamik. Despite what is announced against what is done and not done, it is a preaching of "Do as I say, not as I Do".
No matter, the identities of the nominees and proxy(ies) will be revealed in the upcoming AGM and most probably vote against the resolutions pertaining to the Executive Directors of Serba Dinamik.
To repeat:
The challenge to the Bursa Malaysia, the media and the public and investment community having contempt for Serba Dinamik
To Bursa Malaysia: If indeed the information contained in Bursa Market Place on the top 10 investors of Serba Dinamik is correct, why not make a statement of its accuracy to the public and prove that it is correct? Otherwise, the perpetuation various of misinformation rhetoric of Serba Dinamik would continue. Or does Bursa Malaysia wish it to perpetuate?
To the media, general public and investment community having contempt for Serba Dinamik : To substantiate your proof of FAFT on Serba Dinamik and that you have nothing to hide, please make public about the confirmations from Bursa Malaysia on the accuracy of the information contained in Bursa Market Place on the top 10 investors of Serba Dinamik. Otherwise, the credibility of your revelations, past and future, will be disregarded as continued misinformation rhetoric and unsubstantiated claims of FAFT.
The challenge to the financial institutions and rating agencies that declined continued support for Serba Dinamik due to negative publicity – extend recourse to Serba Dinamik
To the financial institutions : If indeed the information contained in Bursa Market Place on the top 10 investors of Serba Dinamik is correct, consider re-instating its banking facilities as the initial decision to cease banking facilities based off misinformation rhetoric and negative publicity was made in poor judgement.
To the rating agencies : If indeed the information contained in Bursa Market Place on the top 10 investors of Serba Dinamik is correct, consider reviewing Serba Dinamik’s bond ratings with a provisional rating subject to banking facilities re-instated at a later to be determined date.
In conclusion, this is another reason why the capital market regulators have failed not only to safeguard the investment community but also exterminates the corporations that compose Bursa Malaysia.
The lessons learned from the way Serba Dinamik’s issue was handled would require changes to the beneficiary disclosure, changes that enable financial platforms to disclose different beneficiary list and an investigation into proxy ownership.
The question to the everyone, "Do you believe everything you read from the media and various financial platforms?"
Please decide with extreme care the decisions you are about to make in the upcoming Annual General Meeting (AGM). Caveat Emptor.
* In respect of the article, it is recommended that you consult with a Certified Accountant/Chartered Accountant/Chartered Internal Auditor, Chief Financial Officer, Legal Counsel and/or Tax Advisor for advice concerning the article.
It is not recommend that consultations be made with Certified Financial Analyst, Brokers, Traders and/or MBA/MA Finance Graduates as they are deemed not to have the necessary competency and skills to evaluate and advise on such matters discussed in the article.
fattydadThere is no need to spend so much effort to analysis. Serba missed coupon payment of $7m. This tell a lot.
21/01/2022 1:41 PM
DonLeepromoter make up a lot of story. the fact recently trade receivable impairment few hundred of millions tell the fact that the account is manipulated.
Author:Ç·earlêhite | Publish date: Fri, 14 Jan 2022, 8:12 PM
Serba Dinamik’s miraculous resurgence - A blessing in disguise
By Pearlwhite 14th January 2022 8.12PM
All because of misinformation rhetoric and unsubstantiated claims, the capital market regulators have failed not only to safeguard the investment community but also exterminates the corporations that compose Bursa Malaysia. Here is why this is so.
Questions have arisen as to why Serba Dinamik's top 10 investors, which were reported by the media and in various trusted financial platforms, as not held by Malaysian government agencies and pension funds, end up being so.
The issue of the top 10 investors may be a trivial matter to the uninitiated, but it has material consequences. The crux of the issue now is, is information reported by the media and in various trusted financial platforms about Serba Dinamik reliable? Because if it isn't, it is misinformation rhetoric and unsubstantiated claims.
The details of depositors of Serba Dinamik are managed via the Central Depository System, a system that is fully owned and operated by Bursa Malaysia Depository Sdn Bhd, a wholly owned subsidiary of Bursa Malaysia Berhad.
In an emailed request of confirmation to Bursa Market Place, a division within Bursa Malaysia Securities Berhad which is sanctioned and approved for providing credible and reliable sources of financial information, itvigorously maintains the accuracy and completeness in its list of top 10 investors in Serba Dinamik (see below) as correct.
Source : Bursa Market Place (https://www.bursamarketplace.com)
When the details of depositors are confirmed by the entity that regulates and manages them, there is no doubt as to the authenticity of the list, even if other trusted third-party sources of information proves otherwise.
In other words, any doubt to the accuracy and completeness of Bursa Market Place's information is to doubt the credibility of the capital market regulators.
This confirmation from Bursa Market Place has great ramifications to the on-going Serba Dinamik Special Independent Review (SIR) saga.
Scepticism at unsubstantiated claims of Serba Dinamik's shares being fully disposed by the Malaysian government agencies and pension funds
The continuing misinformation rhetoric has for the past 7 months been Serba Dinamik's shares had been fully disposed by the Malaysian government agencies and pension funds.
Scepticism at the reports about Serba Dinamik from a particular media company and mainstream media in general on the SIR
For the past 7 months, we witnessed the misrepresentation of actual facts and developments of the SIR from being reported through selective framing of titles and highlighting of issues with inconsistent and questionable facts. This has always been a game of perception, a trial by social media to decide the direction of companies and dictates how the capital market should function.
Scepticism at the contempt from the public and investment community in general on Serba Dinamik of Fraud and Financial Transgressions (FAFT)
Serba Dinamik had endured the endless cycle of
Spreading of misinformation for contempt for Serba Dinamik
A myriad of unsubstantiated allegations of FAFT on Serba Dinamik
Insinuation that the Board and Management of Serba Dinamik were deceptive, malicious and were due for incarceration
Insinuation that Serba Dinamik will not continue as a going concern
Seeking to harm, intimidate, or coerce those who wish to engage to eliminate confusion and/or seek clarity and
Seeking to harm, intimidate, or coerce those who wish to those who provided facts, reason, methods and evidence contrary to unsubstantiated allegations of FAFT.
not because of evidence but at being indignant (outraged) at Serba Dinamik in discussion boards, forums, responses in social media and trending #hashtags.
Now with confirmation evidence from Bursa Market Place, what do those who perpetuate 1 -3 have to say?
The challenge to the Bursa Malaysia, the media and the public and investment community having contempt for Serba Dinamik
To Bursa Malaysia: If indeed the information contained in Bursa Market Place on the top 10 investors of Serba Dinamik is correct, why not make a statement of its accuracy to the public and prove that it is correct? Otherwise, the perpetuation various of misinformation rhetoric of Serba Dinamik would continue. Or does Bursa Malaysia wish it to perpetuate?
To the media, general public and investment community having contempt for Serba Dinamik : To substantiate your proof of FAFT on Serba Dinamik and that you have nothing to hide, please make public the confirmations from Bursa Malaysia on the accuracy of the information contained in Bursa Market Place on the top 10 investors of Serba Dinamik. Otherwise, the credibility of your revelations, past and future, will be disregarded as continued misinformation rhetoric and unsubstantiated claims of FAFT.
The challenge to the financial institutions and rating agencies that declined continued support for Serba Dinamik due to negative publicity – extend recourse to Serba Dinamik
Serba Dinamik’s CEO Dato’ Karim had opined that financial institutions had ceased banking facilities because of negative publicity. These facilities amounted to nearly RM3 billion. Such facilities were essential for day-to-day operations of Serba Dinamik, executing client and new client contractual obligations and financial obligations (Serba Dinamik to fail to meet its bi-annual interest payment to its bondholders in November 2021).
On the other hand, rating agencies for Serba Dinamik’s bond had also downgraded the ratings of Serba Dinamik’s bonds twice because of negative publicity and due to its failure to meet its bi-annual interest payment, further resulted in additional downgrading of its bond rating.
To the financial institutions : If indeed the information contained in Bursa Market Place on the top 10 investors of Serba Dinamik is correct, consider re-instating its banking facilities as the initial decision to cease banking facilities based off misinformation rhetoric and negative publicity was made in poor judgement.
To the rating agencies : If indeed the information contained in Bursa Market Place on the top 10 investors of Serba Dinamik is correct, consider reviewing Serba Dinamik’s bond ratings with a provisional rating subject to banking facilities re-instated at a later to be determined date.
Accept the challenge and remedy the situation and put things right for the sake of the investment community and Serba Dinamik.
If the abovementioned parties to the challenge remain silent or provide no evidence to the contrary, then you have to remedy the situation and put things right on your own, for the sake of the investment community and Serba Dinamik. When Malaysian government agencies and pension funds continue to hold stakes in Serba Dinamik when they have stated that they would not, one has to question why this discrepancy exist. More than meets the eye perhaps?
Please decide with extreme care the decisions you are about to make in the upcoming Annual General Meeting (AGM). Caveat Emptor.
* In respect of the article, it is recommended that you consult with a Certified Accountant/Chartered Accountant/Chartered Internal Auditor, Chief Financial Officer, Legal Counsel and/or Tax Advisor for advice concerning the article.
It is not recommend that consultations be made with Certified Financial Analyst, Brokers, Traders and/or MBA/MA Finance Graduates as they are deemed not to have the necessary competency and skills to evaluate and advise on such matters discussed in the article.
gohkimhockAfter 25 June 2021, EPF hold below 5%. Subsequently selling does not require EPF to make anymore filing. So the last record will stand as 25 June. Didn't this guy know about this?
Complete madness..
14/01/2022 11:21 PM
TryMakeGoodBuyEven below Low Yat Mentality. Just show how delusional one can become. Does not even understanding shareholding filing.
Actually what is the big deal if EPF is there of not. EPF has been selling down, this is a fact! Maybe not fast enough to get out all.
It is a fact Karim trade in the warrant and shares after disclosure of SIR at a meeting. It is a fact SD defaulted on interest payment. It is a fact SD cannot collect its receivables and stocks amounting to a massive write off
Author:Ç·earlêhite | Publish date: Mon, 10 Jan 2022, 8:00 PM
The battle of the nominees in Serba Dinamik so long as there is no doubt as to the credibility of Bursa Malaysia
By Pearlwhite 10th January 2022 8.00PM
With the release Serba Dinamik’s Annual Report for 2021 and the upcoming Annual General Meeting (AGM) on 31st January 2022, it will be a battle of nominees in Serba Dinamik.
In an emailed request of confirmation to Bursa Market Place, a division within Bursa Malaysia Securities Berhad which is sanctioned and approved for providing credible and reliable sources of financial information, it vigorously maintains the accuracy and completeness in its list of top 10 shareholders in Serba Dinamik (see below) as correct.
Source : Bursa Market Place (https://www.bursamarketplace.com)
This is contrary to popular belief, the result of negative publicity from unsubstantiated claims of Serba Dinamik's shares being fully disposed by the Malaysian government agencies and pension funds, the Employees Provident Fund Board, Kumpulan Wang Persaraan (Diperbadankan) and Permodalan Nasional Berhad (PNB) still holds approximately 13.84% or 515.68 million shares.
In other words, any doubt to the accuracy and completeness of Bursa Market Place's information is to doubt the credibility of Bursa Malaysia as capital market regulator.
When the list of top 10 shareholders of Serba Dinamik is compared against the list of top 30 shareholders in Serba Dinamik’s Annual Report 2021 (see below), key observations can be noted.
Source : Serba Dinamik Annual Report 2021
These key observations are
More than half of Serba Dinamik CEO Mohd. Karim Abdul bin Abdullah’s direct shareholdings are held by nominees not in the top 30 list of largest shareholders, which is a departure of direct shareholdings in the previous Annual Reports of 2016 to 2019.
That the Employees Provident Fund Board, Kumpulan Wang Persaraan (Diperbadankan) and Permodalan Nasional Berhad (PNB) which holds approximately 13.84% or 515.68 million shares stated in Bursa Market Place but not stated in the Annual Report 2021 top 30 shareholders, are held by various nominees which most likely hold less than 5 million shares each
The group of nominees categorised in the 100, 001 – 185,481,202 excluding Serba Dinamik CEO Mohd. Karim Abdul bin Abdullah’s direct shareholdings, Awang Daud bin Awang Putra, Employees Provident Fund Board, Kumpulan Wang Persaraan (Diperbadankan) and Permodalan Nasional Berhad (PNB) represents approximately 23.02% or 854.80 million shares (2,165.80 - 787.38 -7.94- 515.68).
Of the 23.02% or 854.80 million shares, consist 13.51% or 500 million shares being the block of shares disposed before 10.00 am on 1st June 2021 that is being held by undisclosed buyers.
That leaves 9.51% or 354.80 million shares in the 100, 001 – 185,481,202 group which are not held by the abovementioned 1 - 4. In the 1 – 100,000 group, it totals 25.33% or 939.70 million shares. This brings the total to 34.84% or 1,294.50 million shares.
When the other known top 30 holders are tallied, it amounts to 12.3% or 456.65 million shares (i.e. total of top 30 shareholders minus 1, 3, 4, 5, 8 10, 18).
That leaves other large nominee holders and retail investors holding approximately 22.54% or 837.85 million shares.
When the shares held by major shareholders are being fragmented to nominees, it is evident that certain substantial shareholders wish to stay anonymous for purposes known to them. The support from retail investors could be a game changer for those who perpetuate contempt for Serba Dinamik as it fuels greater negative publicity of Fraud and Financial Transgressions (FAFT), despite the auditors’ opinion relying upon the outcome of the Special Independent Review (SIR).
However, for purposes of the upcoming AGM, it will showcase the battle of nominees in Serba Dinamik when it comes to voting and polling. It will be even more interesting in the coming weeks and months, that these anonymous nominees will most probably request for an Extraordinary General Meeting (EGM).
The 3 Executive Directors, CEO Mohd. Karim Abdul bin Abdullah, Abdul Kadir Sahib and Awang Daud bin Awang Putra holds 37.77% of the shares of Serba Dinamik.
* In respect of the article, it is recommended that you consult with a Certified Accountant/Chartered Accountant/Chartered Internal Auditor, Chief Financial Officer, Legal Counsel and/or Tax Advisor for advice concerning the article.
It is not recommend that consultations be made with Certified Financial Analyst, Brokers, Traders and/or MBA/MA Finance Graduates as they are deemed not to have the necessary competency and skills to evaluate and advise on such matters discussed in the article.
According to this list, Employees Provident Fund Board or EPF owned 4.97% as of 25-Jun-2021. That is correct. After 25-Jun, there was no more update from EPF,
When EPF's holding dropped below 5%, EPF ceased to become a substantial shareholder. Therefore EPF did not need to disclose further shareholding changes. EPF could have disposed its entire holding without the need for further disclosure. The Top 10 list only records EPF's position during EPF's last announcement, at the moment when EPF's holding crossed the line to below 5% as of 25-Jun.
Same applies to Kumpulan Wang Persaraan (Diperbadankan) or KWAP. KWAP'd holding dropped below 5% after 1-Jun-2021. At that point KWAP ceased to be a substantial shareholder. No more disclosure was required. The Top 10 list only records KWAP's last position when shareholding dropped below 5%.
(2) The "orange" you used for comparison is the list of Top 30 shareholders published in Serba Dinamik 2021 Annual Report. This was the snapshot of top 30 shareholders as of 2-Dec-2021.
You don't find EPF and KWAP anymore.
The reason is simple. EPF and KWAP have sold most if not all of their remaining shares such that they were no longer in the Top 30 list by 2-Dec.
We don't need a "nominee battle" conspiracy theory to explain the difference between an apple and an orange.
10/01/2022 11:43 PM
OldWiseMan100now the AR is wrong. looks like everybody and everything is wrong... maybe your brain is wrong? what kind of article is this?
u think puppy love in high school? need to do hide and seek? if epf leaves, they leaves. no looking back. why they need to hide behind nominee?
u just cannot accept your gf left you. karim cheated on you. wake up
10/01/2022 11:59 PM
observatoryOf course his brain isn't wrong. He's a smart guy.
500 comments ago, when he just started commenting on SD, he took a different position. https://klse.i3investor.com/servlets/cube/post/pearlwhite.jsp?fp=27
Something changed along the way.
11/01/2022 12:29 AM
emsvsiThis is what happens when you invest you and your dependents' entire life savings because greed is good and the thought of fast money
11/01/2022 12:47 AM
Balian de Ibelinagain this article is against all known laws of nature of sheet and pee and some say Acts of Parliament .... laws of SC and SSM as well.
and also all known laws in US, UK and some say Afghanistan too.
nominees must declare their beneficial ownership to Cosec. Failure to comply is jail term.
so Cosec will compile all Beneficial Owners and show inside AR. => If dun have KWSP inside AR means dun have KWSP. PERIOD
I just do not see KWSP and KWAP wanting jail terms for their CEOs
so along comes this feller from Tanjung Rambutan with just kindergarden education claiming that KWSP and KWAP CEOs should be jailed?
and why am I replying to a madman from Tanjung Rambutan with kindergarden education?
=> I am just afraid that this Tanjung Rambutan feller wants more company with him inside Tanjung Rambutan.
1) Azam Baki just declared publicly that he is a criminal 2) and that Azam Baki committed a jailable offense against SSM and SC for failing to declare Beneficial Ownership of his shares for his brother. 3) Azam Baki was very happy to be a self-confessed criminal.....
and after that Law Minister U-Turn
1) and claim that those shares were Azam Baki punya shares 2) and no criminal activities were committed by Azam Baki, 3) and shares were affordable
kakakakakaka
11/01/2022 1:50 AM
Huangbk72What are the i3 moderators doing? Allowing such nonsense to be posted ???
Can I write a blog on Elvis Presley is still alive and he is Masquerading as Najib?
Utter nonsense
11/01/2022 5:23 AM
SsleeIf you’re seeing things that aren’t there, it’s important to ask yourself a few questions to find out if something more serious is going on.
Does this happen often? Are you sure no one else is seeing it? (This might sound weird, but it’s important to check your reality.) Does seeing strange things bother you? Do you experience other things that are weird or hard to explain, like hearing voices or feeling like people are watching you all the time? If the answer to the above questions are yes, then you might be struggling with the early signs of psychosis.
What should I do next? Psychosis can get worse if you are especially stressed, don’t get enough sleep, or don’t reach out to get help. The sooner you can get help the better.
Here are some things to consider doing if you’re struggling with psychosis:
Take a mental health screen. You can show the results to someone you trust to discuss what to do next. Manage your stress. Do you notice things that make your symptoms worse? How can you manage those situations so they can be avoided or be less stressful? Stress makes everything worse. Are you getting enough sleep? Not getting enough sleep (especially for days at a time) can indicate that you’re experiencing other mental health problems, like bipolar disorder. Getting treatment: With treatment, early signs of psychosis can be resolved. Take a comprehensive approach to getting better. Someone can help you with school, work, family life, medications, and relationships. This type of treatment is called Coordinated Specialty Care. Psychosis also responds relatively quickly (within a week) to medications. If you are interested in getting medication, you want to talk to a doctor to find the right kind of medication treatment. Don’t struggle alone and don’t wait. Taking some kind of step early is key to getting better.
11/01/2022 7:19 AM
Keyman188Amboi...long long father...mother...grandpa...grandma...saudara-mara stories...
Aiyoo...talk so much end up you want take your money only mahhh...
Just cut loss lahhh if "got chance to uplift suspension"...
Old man always like to study "Why "A" Students Work for "C" Students and "B" Students Work for the Government" philosophy quoted by Robert T. Kiyosaki...
Keyman188 always say time to punish so many dreamers still living at Metaverse to visualise "skim cepat kaya"...
Balian de Ibelinin the financial world.......... a failure to declare Beneficial Ownership of shares is just like doing murder, rape and robbery at the same time....
11/01/2022 10:20 AM
danny074when you have nothing better to do. Delusional and denial. What a dangerous individual.
11/01/2022 2:55 PM
Trader2A conman, Kareem's counter that almost had everybody taken for a big ride. Hopefully, he gets what he deserves... a severe penalty, plus behind bars if possible. An eye-opener to all ' wannabe ' business crooks !
11/01/2022 3:17 PM
TryMakeGoodBuyif you read PW's previous posting. PW always claims has inside info with all the action plan. Always tell you got some plans to be announced soon.
PW is just full of air and even have lower than Low Yat Mentality. Really living in her own world. Don't' even understand timing of report and disclosure requirments.
11/01/2022 3:51 PM
Timmy TanGreat explanation by observatory. Sincerely hope that this pearlwhite will be jailed together with Karim for spreading lies after lies, nonsense after nonsense.
11/01/2022 3:55 PM
Balian de Ibelinwhen first hear audit problem, SELL at whatever price at market
thats also 3iii advice
many believed pearlblack punya explanations of: -
anti-bumiputra conspiracy racism,
religion, political,
eRection forced takeover,
people want buy Serba, jealousy,
Elvis is still alive, Martians have landed at Putrajaya.
so now those cult followers of pearlblack cult have to pay the price lah
you prepared the bed so must lay in it lah.....
11/01/2022 5:34 PM
wongchinWhy argue who still holding how much of sd share? Did it make a difference as share already suspended. The most pressing subject is how n what did the management done to mitigate cash flow n how to renegotiate with default bond holder. And is there any banker still willing to lend a hand? Thats what minority share holder concern.
12/01/2022 6:36 AM
Haru_JoyPearlwhite, any idea the court battle between SB vs KPMG? Still proceeding or case closed. So far in the news only find Bursa and EY vs SB.
Author:Ç·earlêhite | Publish date: Fri, 31 Dec 2021, 8:18 PM
Securities Commission's (SC) uphill task to successfully charge Serba Dinamik (Part 2)
By Pearlwhite 31st December 2021 8.18PM
RM1.438 billion of audit discrepancies that cannot be verified in the Special Independent Review (SIR) is the basis for the false statement in relation to the revenue figure of RM6.014 billion contained in Serba Dinamik’s Quarterly Report on Consolidated Results for the Quarter and Year ended 31st December 2020.
Determining the corresponding financial item sharing the false statement in relation to revenue
What could that RM1.438 billion be? What does it consist of?
Accounting, in its most rudimentary form, is called the “double entry system” where a recording of a financial transaction requires two entries (A Debit entry and A Credit entry). The key take-away for the purpose of this article is that if false statements were to be committed, it requires two entries for that fraud to happen.
For example, if one were to record fictitious revenue from a RM100 million sale from a customer, it must record a RM100 million fictitious payment from the customer or any other corresponding entry.
The initial audit discrepancies highlighted by KPMG were
Customers
Local suppliers
Bahrain customer & suppliers and
IT Contracts involving multiple customers and vendors.
Through the process of elimination by considering the following,
KPMG and Bursa’s Originating Summons did not raise any audit discrepancies with Cash and Cash Equivalents
Below is the financial information pertaining to revenue, trade debtors & contract assets for Serba Dinamik for the financial years 2016 to 2020. Bear in mind, the same analysis can be applied to Payables (suppliers and vendors).
Financial Year Ended 31 December*/30 June** (RM'mil)
2021**
2019*
2018*
2017*
2016*
5 Year Total
5 Year Ave.
(Unaudited)
(Actual)
(Actual)
(Actual)
(Actual)
Revenue
8,606
4,529
3,283
2,722
1,409
20,549
4,110
Trade debtors & Contract Assets
2,594
1,578
1,018
880
741
6,811
1,362
Amounts not past due
1,521
N/A
N/A
N/A
N/A
Provisions / Bad debts written off
None
None
None
None
None
Assets acquisition in lieu of debts
None
None
None
None
None
Source : Serba Dinamik Annual Report and Quarterly Report
Based on the above information, it can be deduced that trade debtors & contract assets owed by customers of Serba Dinamik have all been settled within the stipulated timeframes. Which is to say, with Revenues of RM20.5 billion for the financial years 2016 to 2020, only RM2.6 billion remain outstanding as at the end of the financial year 2020.
Granted, there would be cases where customers are unable to pay and there would be instances where customers’ assets would be used for partial repayments and/or bad debts are provided or written off. Serba Dinamik had none of that and it was not a discrepancy for KPMG.
Moreover, Debtor’s payments to Serba Dinamik would be scrutinised and reviewed and the accuracy and completeness of the cash and cash equivalents would further be confirmed by Serba Dinamik’s panel bankers the likes of HSBC, RHB, and etc.,. with bank confirmations which are initiated by the auditors themselves and reverted to by the banks directly.
KPMG did not raise audit discrepancies in relation to revenue and trade debtors being re-classified as expenses
As part of the external audit and SIR, auditors would scrutinise the accounting transactions pertaining to each of the trade debtors. In cases of false statements, typically transactions of moving debtor transactions to expense requires detailed review and explanations.
SC’s charge relates to “exclusively” false statement is in relation to the revenue figure of RM6.014 billion contained in Serba Dinamik’s Quarterly Report on Consolidated Results for the Quarter and Year ended 31 December 2020
SC’s charge against Serba Dinamik did not mention of any involvement with the National Financial Crime Centre (NFCC), the Malaysian Anti-Corruption Commission (MACC), as well as from Bank Negara Malaysia and the Inland Revenue Board.
In this respect, Serba Dinamik did not breach Malaysia’s Anti–Money Laundering, Anti–Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA) and commit tax evasion.
In conclusion, by mutual exclusivity, the only false statement in relation to revenue arise corresponding to trade debtors & contract assets which have not been fully settled with payments.
Determining the extent of false statement contained in SC’s charge against Serba Dinamik
In determining the extent of false statement contained in SC’s charge against Serba Dinamik, depends to what kind of documents that SC had seized. The type of documents can be categorised into the following according to the activities within Serba Dinamik.
Sales and Marketing (S&M)
Typically, most documents under S&M consist of Invoices, Service Orders (from clients), Bid documents (and quotations), Letter of Awards and Contracts. Invoices are the only document that can be reproduced by Serba Dinamik from the Enterprise Resource Plan (ERP) system.
Projects, Operations and Procurement (POP)
Here is where the main activities of Serba Dinamik are conducted for its clients. Examples of such documents are work/service requisitions (from Projects and Operations), Delivery/Receipt Orders, Purchase Requisitions (and Vendor Quotation). There are also reports on Project and Operations statuses. Typically, these documents exist for the purposes of Board of Directors (BOD) and Management use, Approving Committee use and/or Statutory use. These reports contain signatures of the approving personnel.
Finance and accounting
Under finance and accounting, documents like payment vouchers (which would also contain in bundle the S&M and POP documents), bank-in-slips, customer/vendor/bank statements, Bank Negara and banking related forms, customs declaration forms, tax forms and etc.,.
Registered Address / Company Secretary
The registered address (usually the Company Secretary’s Office) would contain all the documents pertaining to BOD and Management in the form of the meeting registers which contain all the deliberations and approval of all contract awards (legal/commercial arrangements, entities structure and financial arrangements and financial appraisals), projects (details of project statuses, issues) and Operations (details of operation statuses, issues).
Why SC faces an uphill task to successfully charge Serba Dinamik
Contract Assets (Project Works, Project Assets and Inventories)
IFRS 15Revenue from Contracts with Customers (superseded IAS 11 Construction Contracts from 1st January 2018) defines a contract asset as an entity’s right to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditioned on something other than the passage of time (for example, the entity’s future performance).
In simple terms, a contract asset arises when an entity has done work for a customer that has been recognised as revenue to date but has not yet issued an invoice or received payment for that work.
The contract assets will pose a challenge to be verified because what is verified is the work in progress (WIP) and finish product since 31st December 2020. The inventory and labour have been used in the process of construction. It is a monumental task to review the weekly project reports and all the other inventory and work records, delivery and receipt documents to confirm.
The assets which may have been part of the construction, like gensets, topside equipment can be tracked easily. However, items like piping cannot be traced accurately as they have used in the construction and not so visible. In addition, machinery can be in different locations then and now. The requires a complete documentation verification, review delivery/receipt logs etc for material items, but there are some that cannot be traced since it is not visible now, either lost or junked.
Why SC has no basis to charge Serba Dinamik
What is of concern is, are the project works, assets and inventories that are to be verified (wherever possible) the same ones as highlighted by KPMG? Based on this, the review by SC no matter how successful, will be inconclusive for those that cannot be verified because it has been consumed or lost in the process of executing the work.
Trade debtors
The amounts owing trade debtors were initially questionable as highlighted by KPMG because the customer didn't respond to confirmation of balances, its offices could not be found or lead to a different location to which Serba Dinamik responded were due to misinterpretation with the Arabic letters and punctuation.
So why would physical place and location verification be so important then? Physical sighting as auditors calls it, is important because it confirms “existence”. Existence is the objective reality or being visible to our eyes. Existence is what gives credibility and legitimacy to the to what are stated in the financial statements.
If existence cannot be verified, whatever that is stated in the financial statements can be fictional, no matter the documentation and signed confirmations.
Why SC has no basis to charge Serba Dinamik
The parties involved in the SIR previously were un-willing to cross Malaysia’s borders which was re-affirmed in a letter dated 29th October 2021 from EY to Serba Dinamik that the factual findings update was subject to verification and collaborativeness. If EY (and KPMG) had used its international affiliates in those countries, there would not have been issues pertaining to verification in the very first place with KPMG and EY completing it up to 29th October 2021.
The question is, did SC conduct its own verification with the required parties?
Furthermore, inability to verify confirmations and/or physical/site visits of customers can be cross examined against bank receipts / export credit notes / transfer documents subsequent to the financial year to determine once and for all, who the actual customer was, the actual location and in some instances confirmation of amount owing in the event that payments are for the outstanding balance.
The types of documents seized by SC from Serba Dinamik does not provide the complete details in relation to revenue, trade debtors & contract assets
Based on SC’s statement regarding the seizure of documents at various Serba Dinamik offices previously, it can be deduced that documents pertaining to finance and accounting were seized. This deduction is corroborated when the vice-president of accounts and finance of Serba Dinamik was additionally charged with creating fictitious sales; i.e. without other charges levied on other vice presidents not related to accounts and finance.
These accounting and finance documents are deemed “operational/working” documents as it pertains to day-to-day activities of Serba Dinamik. Such documents would typically involve low to mid-level employees of Serba Dinamik with occasional approval from the BOD and Management based on the Limits of Authority (LOA).
Why SC has no basis to charge Serba Dinamik
It is deeply concerning when documents pertaining other areas of Serba Dinamik were not seized. Additionally, of all the documents, documents held by the registered address/Company Secretary are the most crucial because it gives Serba Dinamik the legitimacy and rational for all its accounting entries.
These documents consist meeting registers, deliberations and approval of all contract awards (legal/commercial arrangements, entities structure and financial arrangements and financial appraisals), projects (details of project statuses, issues) and Operations (details of operation statuses, issues).
When these documents are reviewed in tandem in relation to revenue, trade debtors & contract assets, it may not be false statements when you consider client contracts, client legal and financial entity arrangements, client bid documentation, client work orders and etc.,.
In addition, when this is cross-examined against the yet to be completed physical place, location verification and subsequent payments from customers, it potentially nullifies SC’s charge on Serba Dinamik.
SC’s charge against Serba Dinamik stems from the required evidence which were subject to verification and collaborativeness whenEYmadenorepresentationtotheaccuracyandcompletenessoftheinformationcontainedintheFactualFindingsUpdate
It is remarkable that SC was able to complete in its own SIR within 1.5 months of putting in additional resources, as disclosed by SC in an email reply to The Edge on 12th November 2021. SC has achieved what EY couldn't accomplish over 4 months. The reasons for this are
The reliance on previous work done by KPMG and EY; EY made no representation to the accuracy and completeness of the information contained in the Factual Findings Update
Incomplete review of client contracts, client legal and financial entity arrangements, client bid documentation, client work orders and etc.,.
Incomplete review of documents pertaining other areas of Serba Dinamik and
Incomplete review of physical place, location verification and subsequent payments from customers
Why SC has no basis to charge Serba Dinamik
For the past 7 months, there was no disclosure of SC requesting co-operation and evidence pertaining to the conduct of its own SIR. What was disclosed by SC was on its denial that the then Chairman of Serba Dinamik was in communication with SC and that SC was availing additional resources to conduct its own SIR.
Furthermore, as disclosed by the recent now resigned 4 Independent Non-Executive Directors, the communication between Serba Dinamik and the capital market regulatory bodies were more interested with
Imposing requirements for premature and unfair actions due to the incomplete SIR by EY that was still on-going and inconclusive (as re-affirmed in EY’s letter dated 29th October 2021) and
Imposing biased regulatory prosecution aimed towards Serba Dinamik
If SC was not in communication with Serba Dinamik with respect to its own SIR and EY made no representation to the accuracy and completeness of the information contained in the Factual Findings Update, how then will SC arrive to a conclusion without the possibility of doubt of errors or omission, notwithstanding the reliance place on previous work done by KPMG and EY and incomplete review in documents and verification?
The consequences to Serba Dinamik with SC’s charges
SC’s interference with Serba Dinamik’s Annual Report 2020 disclosure nullifies the opportunity to clear the SIR and false statements in relation to revenue
Serba Dinamik had consistently decided to uphold the compliances with the approved auditing and accounting standards by allowing its auditor, Nexia, to perform their duties without interference and time constraints.
With SC’s charge, the Serba Dinamik’s Annual Report 2020 would be considered invalid, no matter the opinion of the auditors, unless with the exception that the auditor’s opinion was that the financial statements were not true and fair.
Consequently, this indirectly means that Nexia is being subjugated into adhering to the false statement charges by SC when as auditors conducting the 2020 audit for Serba Dinamik, would have had completed
The review of client contracts, client legal and financial entity arrangements, client bid documentation, client work orders and etc.
The review of documents pertaining other areas of Serba Dinamik and
The review of physical place, location verification and subsequent payments from customers
to arrive to an opinion to the financial statements of Serba Dinamik without the possibility of doubt of errors or omission.
Continued contempt for Serba Dinamik fuels greater negative publicity of Fraud and Financial Transgressions (FAFT)
Serba Dinamik will invariably continue to suffer negative publicity and reputational loss. Such contempt continues to be evidenced with endless cycle of
Spreading of misinformation for contempt for Serba Dinamik
A myriad of unsubstantiated allegations of FAFT on Serba Dinamik
Insinuation that the Board and Management of Serba Dinamik were deceptive, malicious and were due for incarceration
Insinuation that Serba Dinamik will not continue as a going concern
Seeking to harm, intimidate, or coerce those who wish to engage to eliminate confusion and/or seek clarity and
Seeking to harm, intimidate, or coerce those who wish to those who provided facts, reason, methods and evidence contrary to unsubstantiated allegations of FAFT.
5. Concluding SC’s uphill task to successfully charge Serba Dinamik
Based off all publicly disclosed statements, originating summons and charges from KPMG, EY, Bursa Malaysia and SC and various media companies, it can be reasonably concluded without doubt that the charge levied against Serba Dinamik when non-mutually exclusive factors in the following are not being adequately addressed individually and as a whole
Contract Assets (Project Works, Project Assets and Inventories)
Trade debtors
The types of documents seized by SC from Serba Dinamik does not provide the complete details in relation to revenue, trade debtors & contract assets
SC’s charge against Serba Dinamik stems from the required evidence which were subject to verification and collaborativeness when EY made no representation to the accuracy and completeness of the information contained in the Factual Findings Update
SC’s interference with Serba Dinamik’s Annual Report 2020 disclosure nullifies the opportunity to clear the SIR and false statements in relation to revenue
Continued contempt for Serba Dinamik fuels greater negative publicity of Fraud and Financial Transgressions (FAFT)
it is very likely SC faces uphill task to successfully charge Serba Dinamik.
* In respect of the article, it is recommended that you consult with a Certified Accountant/Chartered Accountant/Chartered Internal Auditor, Chief Financial Officer, Legal Counsel and/or Tax Advisor for advice concerning the article.
It is not recommend that consultations be made with Certified Financial Analyst, Brokers, Traders and/or MBA/MA Finance Graduates as they are deemed not to have the necessary competency and skills to evaluate and advise on such matters discussed in the article.
InsiderSharkhello karim, pearlwhite must be karim.
31/12/2021 8:25 PM
SsleeHahahaua, Someone think he is better than AG in knowing the law.
Meanwhile, the group’s vice-president of accounts and finance Muhammad Hafiz Othman was slapped with an additional charge in the Shah Alam Sessions Court for allegedly creating fictitious sales, causing falsified revenue to be recorded in Serba Dinamik’s earnings report for the quarter and year ended Dec 31, 2020.
KEY WORD: CREATING FICTITIOUS SALES. SC just need documental or lack of document or non existant/fictitious customer to prove beyond any doubt of fictitious sales.
31/12/2021 8:40 PM
vision912the writer is living in a parallel universe where u can 'write' a wrong
01/01/2022 6:05 PM
vision912purely for entertainment purposes only. To escape the harsh realities of losing all your money....just like enron investors back then
01/01/2022 6:08 PM
Balian de Ibelinit never ceases to amaze me that all amateurs believe that once debtors and creditors are paid up, they have managed to escape from their crimes and they cannot be prosecuted any more ....
Fully paid up debtors and creditors are always the first thing I audit.
Serve U Right this Ular for trying to kon innocent parties loh!
Raider just wanted to be kind to warn them against con despise people like u mah!
Posted by grabConUlar > Jan 2, 2022 4:26 PM | Report Abuse
I have 100% confident in U as spammer, stockraider aka whistlebower99, U are so geng in lying n spread rumours 2 change, adding of value due to PP n ESOS into dilute value of shares.
Slaughter millions of billies losing in most penny stocks undergone such exercise. Now Netx n Lambo went up liao, U n d syndicates U work with must have made tons of dirty money from those billies. Hope no1 commit suicide go 2 look 4 U at night loh... hahahahahah
Author:Ç·earlêhite | Publish date: Wed, 29 Dec 2021, 7:49 PM
The peculiarities with Securities Commission’s (SC) charge sheet against Serba Dinamik (Part 1)
By Pearlwhite 29th December 2021 7.48PM
Finally, after months of misinformation rhetoric on the matters that were being reviewed in the Special Independent Review (SIR), it can now be deduced that RM1.438 billion of in-complete and inconclusive SIR matters relates exclusively to revenue in the financial statements of the Quarterly Report for the period ended 31st December 2020.
Misinformation rhetoric against Serba Dinamik
For the past 7 months, misinformation rhetoric about the SIR matters were about customers, local suppliers, Bahrain customer & suppliers and IT Contracts involving multiple customers and vendors. With the SC charge sheet, local suppliers, Bahrain customer & suppliers and IT Contracts involving multiple customers and vendors can now be excluded.
As revealed previously in “Serba Dinamik - Two thirds cleared with one third being finalised. A little more to go”,
if the parties involved in the SIR are un-willing to cross Malaysia’s borders, then RM1.438 billion will not be resolved.
This was re-affirmed in a letter dated 29th October 2021 from EY Consulting (EY) to Serba Dinamik, EY confirmed that the factual findings update was subject to verification and collaborativeness.
It is remarkable that SC was able to complete in its own SIR within 1.5 months of putting in additional resources, as disclosed by SC in an email reply to The Edge on 12th November 2021. SC has achieved what EY couldn't accomplish over 4 months.
However, Serba Dinamik was not availed the opportunity to address SC’s conclusion, however inconclusive, for SC to come to a conclusion without doubt and proceed with the charge sheet.
Certain members of Serba Dinamik’s Board of Directors (BOD) were not charged
It is ironic that certain members of the BOD were charged, when 2 other Non-Independent Executive Directors were not when all BOD members are ultimately accountable and responsible to address SC’s charge sheet.
Interference with Serba Dinamik’s Annual Report 2020 disclosure
Serba Dinamik had consistently decided to uphold the compliances with the approved auditing and accounting standards by allowing the auditor to perform their duties without interference and time constraints.
With SC’s charge sheet, the Annual Report 2020 would be considered invalid, no matter the opinion of the auditors, with exception if the auditor’s opinion was that the financial statements were not true and fair.
Additionally, prior to release of the Annual Report, it is standard practice of good corporate governance that the BOD of Serba Dinamik to have signed all the relevant audited accounts and Annual Reports and have had the Directors' meeting to approve the Annual Report 2020. Attempts may have been made to prevent the Directors’ meeting from happening.
Next : SC’s uphill task to successfully charge Serba Dinamik
* In respect of the article, it is recommended that you consult with a Certified Accountant/Chartered Accountant/Chartered Internal Auditor, Chief Financial Officer, Legal Counsel and/or Tax Advisor for advice concerning the article.
It is not recommend that consultations be made with Certified Financial Analyst, Brokers, Traders and/or MBA/MA Finance Graduates as they are deemed not to have the necessary competency and skills to evaluate and advise on such matters discussed in the article.
InsiderSharkyou kept on saying cannot cross border and because of covid... walao eh, many people already say EY and KPMG got offices in middle east, no need to cross border to verify, they just ask their counterpart to verify for them.
ShinnzaiiNexia also no dare to sign director dare to sign? good governance practice? I tot Bod promises they have no intention to default coupon payment but at the end default eh...hehe
cend0lhaha who is this noob who wrote this article. amateur!
it is not encumbered on SD to prove to SC that SC's charges are substantiated. It is for SD to prove its innocence in court. Nothing in the law requires SC to call SD to explain itself before the charges sheet are issued. Also, SC did not just spend 1.5 months to investigate, it was longer - since May 2021. Noob
SC has the power to investigate and interview people under the law. Furthermore, It has the power to confiscate evidence etc including the raid on SD's office. Of course SC's investigation is more efficient that the SIR done by EY. EY has to rely on information fed by SD. Do you think SD will provide information to EY that would incriminate itself? Noob
SC's investigation has not completed. Additional charges will be levelled against SD soon, as more witnesses are being interviewed by SC.
Author:Ç·earlêhite | Publish date: Mon, 27 Dec 2021, 7:50 PM
The devastation Serba Dinamik suffered due to the abuse of Qualified Privilege that fuelled negative publicity with unsubstantiated allegations of fraud and financial transgressions - Full
By Pearlwhite 24th December 2021 7.38PM Updated (27th December 2021 7.50PM)
Ever since the revelation of audit discrepancies by KPMG 7 months ago, Serba Dinamik had incurred significant reputation and financial losses. Its results for the 1st quarter of 2021 for the period ended 30th September 2021 were the lowest achieved since its debut into the Malaysian Stock Exchange in 2016.
We have witnessed in the article “Serba Dinamik’s fruits of labour to the truth is getting closer” how misinformation rhetoric had been used to conduct a trial by social media on Serba Dinamik. This was intentionally executed by withholding the actual facts, developments and un-completed findings of the Special Independent Review (SIR) from the public.
The abuse Qualified Privilege
In the article “Serba Dinamik’s financials are free of financial transgressions and fraud”, it was shown with facts, reason, methods and evidence derived from KPMG’s management letter and Bursa Malaysia’s Originating summons, that Serba Dinamik could not have committed Fraud and Financial Transgressions (FAFT).
However, misinformation rhetoric by intentionally withholding the actual facts, developments and un-completed findings of the SIR tantamount to an abuse of Qualified Privilege because it had led to the perpetuation of rampant unsubstantiated claims of FAFT, manipulation with malice leading to negative publicity that hindered Serba Dinamik to continue as a going concern.
The abuse of qualified privilege was further aggravated when a particular media company made a conviction to decide the direction that Serba Dinamik should take and dictate how the capital market should function with respect of the SIR.
Without proper fact checking by independent media until recently, a particular media company was successful in misleading its audience, the public and the court of public opinion. In other words, a particular media company was effectively encouraging unsubstantiated claims of FAFT, contempt for Serba Dinamik and negative publicity for Serba Dinamik.
Unsubstantiated claims of FAFT
When misinformation rhetoric is relentlessly used, one of the undesired consequences are revelations of unsubstantiated claims of FAFT. These claims are continually being perpetuated in discussion boards, forums, responses in social media and trending #hashtags.
Considering that these claimants had so much source material (as they have claimed), it would have been easy to submit such facts, reasons, methods or evidence used to commit FAFT. For the past 7 months, every possible opportunity and encouragement were availed to claimants to provide facts, reasons, methods or evidence to support their claims.
Nevertheless, the claimants gave no answer; not even 1 fact, reason, methods or evidence.
Why? Because being indignant (outraged) about claims of FAFT is not evidence of FAFT i.e., the claimants did not have any but contempt for Serba Dinamik.
The consequence of this is that one is denied the opportunity to cross-examine them. This means zero probability of determining the veracity and credibility of such claims. Bear in mind, the capital market regulators are also denied of this opportunity too.
This is deliberate manipulation with malice.
Contempt for Serba Dinamik fuels negative publicity
When manipulation with malice leads to contempt for Serba Dinamik, it will invariably suffer negative publicity and reputational loss. Such contempt continues to be evidenced with the endless cycle of
Spreading of misinformation for contempt for Serba Dinamik
A myriad of unsubstantiated allegations of FAFT on Serba Dinamik
Insinuation that the Board and Management of Serba Dinamik were deceptive, malicious and were due for incarceration
Insinuation that Serba Dinamik will not continue as a going concern
Seeking to harm, intimidate, or coerce those who wish to engage to eliminate confusion and/or seek clarity and
Seeking to harm, intimidate, or coerce those who wish to those who provided facts, reason, methods and evidence contrary to unsubstantiated allegations of FAFT.
Again, this was further exacerbated when a particular media company made a conviction to decide the direction that Serba Dinamik should take and dictate how the capital market should function with respect of the SIR because it implied that Serba Dinamik acted with deception by not disclosing the SIR and hence led to further contempt for Serba Dinamik.
Negative publicity is the result of contempt for Serba Dinamik
Serba Dinamik’s CEO Dato’ Karim had opined that certain financial institutions had ceased banking facilities and certain business partners of Serba Dinamik had stopped collaborations or business ventures that had been agreed on because of negative publicity.
On the other hand, numerous rating agencies for Serba Dinamik’s bond had also downgraded the ratings of Serba Dinamik’s bonds twice because of negative publicity.
Serba Dinamik ability to continue as going concern due to negative publicity
Accordingly, this resulted in Serba Dinamik achieving a poor 1st quarterly result for 2021 since its debut into the Malaysian Stock Exchange in 2016 and will not be the last.
In a separate affidavit filed by Serba Dinamik’s then chairman, Mohammed Ilyas, certain financial institutions have ceased banking facilities due to the negative publicity. These facilities amounted to nearly RM3 billion. Such facilities were essential for day-to-day operations of Serba Dinamik, executing client and new client contractual obligations and financial obligations.
The loss of RM3 billion of banking facilities had also caused Serba Dinamik to fail to meet its bi-annual interest payment to its bondholders in November 2021 and that further resulted in additional downgrading of its Bond rating by numerous rating agencies.
* In respect of the article, it is recommended that you consult with a Certified Accountant/Chartered Accountant/Chartered Internal Auditor, Chief Financial Officer, Legal Counsel and/or Tax Advisor for advice concerning the article.
It is not recommend that consultations be made with Certified Financial Analyst, Brokers, Traders and/or MBA/MA Finance Graduates as they are deemed not to have the necessary competency and skills to evaluate and advise on such matters discussed in the article.
Ssleehttps://themalaysianreserve.com/2021/09/23/serba-dinamik-looking-at-fast-cash-generating-projects/ SERBA Dinamik Holdings Bhd is in “business as usual” mode with all operations put on close monitoring for compliance to the environmental, social and governance (ESG) framework.
Group MD and CEO Datuk Dr Mohd Karim Abdullah said the company is tapping into orders that can generate fast cash income, especially from projects related to information and communications technology (ICT), and operations and maintenance (O&M) jobs.
“The business outlook is fairly optimistic, but dependent on the Covid-19 pandemic situation,” he told The Malaysian Reserve.
With sustainability issues gaining prominence in the corporate sector, the group is aware ESG has become the yardstick by which most institutional investors make their investment decisions.
Mohd Karim said Serba Dinamik’s upcoming quarter results are scheduled to be announced on Sept 29.
So pearlwhite is speading fake news, or is he abuse Qualified Privilege? In a separate affidavit filed by Serba Dinamik’s then chairman, Mohammed Ilyas, certain financial institutions have ceased banking facilities due to the negative publicity. These facilities amounted to nearly RM3 billion. Such facilities were essential for day-to-day operations of Serba Dinamik, executing client and new client contractual obligations and financial obligations.
29/12/2021 9:46 AM
Balian de Ibelinlooks like pearlblack went to a cemetery at midnite with live chicken and a knife on a moonless nite.
at precisely midnite 12:00 pearlblack slit chicken throat over unmarked grave and splashed warm blood on it.
Evil spirits told pearlblack to buy Serba and the rest was chicken history...
Author:Ç·earlêhite | Publish date: Fri, 24 Dec 2021, 7:55 PM
Serba Dinamik suffers devastation from the abuse of Qualified Privilege that fuelled negative publicity with unsubstantiated allegations of fraud and financial transgressions - Trailer
By Pearlwhite 24th December 2021 7.38PM
Ever since the revelation of audit discrepancies by KPMG 7 months ago, Serba Dinamik had incurred significant reputation and financial losses. Its results for the 1st quarter of 2021 for the period ended 30th September 2021 were the lowest achieved since its debut into the Malaysian Stock Exchange in 2016.
We have witnessed in the article “Serba Dinamik’s fruits of labour to the truth is getting closer” how misinformation rhetoric had been used to conduct a trial by social media on Serba Dinamik. This was intentionally executed by withholding the actual facts, developments and un-completed findings of the Special Independent Review (SIR) from the public.
Unsubstantiated claims of Fraud and Financial Transgressions (FAFT)
When misinformation rhetoric is relentlessly used, one of the undesired consequences are revelations of unsubstantiated claims of FAFT. These claims are continually being perpetuated in discussion boards, forums, responses in social media and trending #hashtags.
Considering that these claimants had so much source material (as they have claimed), it would have been easy to submit such facts, reasons, methods or evidence used to commit FAFT. For the past 7 months, every possible opportunity and encouragement were availed to claimants to provide facts, reasons, methods or evidence to support their claims.
Nevertheless, the claimants gave no answer; not even 1 fact, reason, methods or evidence.
Why? Because being indignant (outraged) about claims of FAFT is not evidence of FAFT i.e., the claimants did not have any but contempt for Serba Dinamik.
The consequence of this is that one is denied the opportunity to cross-examine them. This means zero probability of determining the veracity and credibility of such claims. Bear in mind, the capital market regulators are also denied of this opportunity too.
This is deliberate manipulation with malice.
Negative publicity is the result of manipulation with malice
When manipulation with malice leads to contempt for Serba Dinamik, it will invariably suffer negative publicity and reputational loss. This was further exacerbated when a particular media company made a conviction to decide the direction that Serba Dinamik should take and dictate how the capital market should function with respect of the SIR.
Serba Dinamik’s CEO Dato’ Karim had opined that certain financial institutions had ceased banking facilities and certain business partners of Serba Dinamik had stopped collaborations or business ventures that had been agreed on because of negative publicity.
On the other hand, numerous rating agencies for Serba Dinamik’s bond had also downgraded the ratings of Serba Dinamik’s bonds twice because of negative publicity.
Serba Dinamik ability to continue as going concern is the result of manipulation with malice
Accordingly, this resulted in Serba Dinamik achieving a poor 1st quarterly result for 2021 since its debut into the Malaysian Stock Exchange in 2016 and will not be the last.
In a separate affidavit filed by Serba Dinamik’s then chairman, Mohammed Ilyas, certain financial institutions have ceased banking facilities due to the negative publicity. These facilities amounted to nearly RM3 billion. Such facilities were essential for day-to-day operations of Serba Dinamik, executing client and new client contractual obligations and financial obligations.
The loss of RM3 billion of banking facilities had also caused Serba Dinamik to fail to meet its bi-annual interest payment to its bondholders in November 2021 and that further resulted in additional downgrading of its Bond rating by numerous rating agencies.
The abuse Qualified Privilege
In the article “Serba Dinamik’s financials are free of financial transgressions and fraud”, it was shown with facts, reason, methods and evidence derived from KPMG’s management letter and Bursa Malaysia’s Originating summons, that Serba Dinamik could not have committed FAFT.
However, misinformation rhetoric by intentionally withholding the actual facts, developments and un-completed findings of the SIR tantamount to an abuse of Qualified Privilege because it had led to the perpetuation of rampant unsubstantiated claims of FAFT, manipulation with malice leading to negative publicity that hindered Serba Dinamik to continue as a going concern.
This was also further evidenced when a particular media company made a conviction to decide the direction that Serba Dinamik should take and dictate how the capital market should function with respect of the SIR.
* In respect of the article, it is recommended that you consult with a Certified Accountant/Chartered Accountant/Chartered Internal Auditor, Chief Financial Officer, Legal Counsel and/or Tax Advisor for advice concerning the article.
It is not recommend that consultations be made with Certified Financial Analyst, Brokers, Traders and/or MBA/MA Finance Graduates as they are deemed not to have the necessary competency and skills to evaluate and advise on such matters discussed in the article.
InsiderSharklose money until lose brain cells... pity. reminds me of genneva gold scam, got support group and gathering somemore, says conspiracy, BN need money, BNM is robber and etc.
lose money is ok, dont lose your brain.
wake up and smell the shit karim shitted on you. karim cooked the books. if nothing to hide, just release the SIR by EY, we all know the SIR is completed because Bursa fill a court case together with the completed SIR report. What is Serba hiding?
If KPMG says got problem, ok, we can doubt, but 2 big audit firms says got big problem? you want another big audit firm to say got problem also?
I tell you, if deloitte and PWC also come to the same conclusion, you will still say not true.
Author:Ç·earlêhite | Publish date: Wed, 22 Dec 2021, 7:27 PM
Serba Dinamik’s fruits of labour to the truth is getting closer
By Pearlwhite 22nd December 2021 7.30PM
The fruits of labour to the truth is getting closer. Thanks to some articles posted by independent media, a particular mainstream media company has been cornered.
For the past 7 months, it has tried to prevent the actual facts and developments of the Special Independent Review (SIR) from being reported. It has been selectively "framing" its titles and highlighting the issues with inconsistent and questionable facts. In addition, its articles were full of "emotional pulls" which were irrelevant to the SIR.
Any progress made to the SIR, which usually comes to a 50 worded paragraph, is always supplemented with 1000 worded paragraphs of what is already publicly known.
Simply put, it has been committing reporting bias. It has always engaged in a game of perception, a trial by social media.
What was even shocking was that it has even ignored to publish press releases from Serba Dinamik when the rest of the mainstream media did so.
It has intentionally hidden the information disclosed by the independent media to the public.
With the articles from the independent media, you would have been able to see the developments of the issues, what was resolved and what is still pending completion.
You would have been able to ascertain the quantum amounts (resolved and uncompleted). You would also be able to discern what the uncompleted issues consist, what audit techniques will be used to resolve them and to what extend that they can be reasonably resolved.
It is so desperate to resolve this issue now on its own accord that it had the audacity to advise Bursa Malaysia to break its own rules by lifting 2 suspensions imposed on Serba Dinamik per Main Market Listing Requirements (MMLR).
In other words, we have a media company that decides the direction of companies and dictates how the capital market should function.
Nevertheless, in the coming month, more disclosures from Serba Dinamik and court proceedings will occur.
In the meantime, everyone has to continue to put up with its misinformation rhetoric and/or until it achieves its agenda with Serba Dinamik.
* In respect of the article, it is recommended that you consult with a Certified Accountant/Chartered Accountant/Chartered Internal Auditor, Chief Financial Officer, Legal Counsel and/or Tax Advisor for advice concerning the article.
It is not recommend that consultations be made with Certified Financial Analyst, Brokers, Traders and/or MBA/MA Finance Graduates as they are deemed not to have the necessary competency and skills to evaluate and advise on such matters discussed in the article.
SsleeTruth is in fact a verified or indisputable fact.
Ye shall know the truth and the truth shall set you free
22/12/2021 9:25 PM
InsiderSharkPearlWhite lose money until gila liao. If really no fraud, then release the SIR lah, why lie in Nov saying SIR is not completed but then go file court order to stop the release of SIR indirectly by Bursa?
scared what? SIR is the truth mah, right?
pearlwhite is the one putting out fake news.
23/12/2021 9:02 AM
mk88when in deep shit, most times cant think wisely
23/12/2021 9:05 AM
alenacPoor guy, have to create own news on behalf of Serbak. Must have sailang all his money into this counter. A lesson in greed you will lose everything if not careful.
23/12/2021 9:09 AM
RexKingReally low level if want post blog to support SD better post with facts and reality.
23/12/2021 11:35 AM
jeffchan1901there's a old Chinese saying that 'the more you explain, the more guilty you are'
23/12/2021 11:40 AM
Trader2Rubbsih ' conman ' counter.. needs to be buired deep & proper.
23/12/2021 11:41 AM
TreeTopViewI don't hold any SD shares and have never held any shares in this company, however I am following this story to see how it develops. I believe my following thoughts are unbiased.
Something that I do not understand is how this story has turned into such a fiasco. Going back to May when these issues first occurred, surely the most logical thing for the company to do if they could not come to an agreement with their auditors was to IMMEDIATELY request a Trading Halt from Bursa. The share price at that time was around Rm1.60, so surely one of the company's main obligations to their shareholders was to protect their investment.
However, what has occurred is a public slanging match which puts SD under much more scrutiny and a share price that has plummeted to 35 cents. That is hardly looking after their shareholders interests.
If the CEO and Board were in total support of their reported financials, then that would be the logical immediate action to take. I would see an immediate Trading Halt as the first HIGH PRIORITY course of action.
I managed a division of a publicly listed company overseas for nine years and was obviously involved in major audits during that period and I have no doubt whatsoever that if there was a major irregularity highlighted that couldn't be explained and resolved, the CEO of the company would have called for an immediate halt in the company shares. Thankfully that never had to be brought into action.
I'm not pointing the finger at anyone yet in this 7 month saga but something doesn't quite add up.
Very interested to see the final outcome !
23/12/2021 12:19 PM
InsiderSharkThey did halt it, i think for 2 or 3 days after the did a briefing with the funds on why they are innocent.
the problem is karim and gang should have admitted their fraud instead of claiming conspiracy, BAU, and then they went on buying some again just to convince retailers everything is ok... and retailers went averaging down.
karim is for himself, he couldn't care who he hurts along the way, many retailers average down while the big boys sell. people put in their hard earn money and life savings so that karim can satisfy his ego. karma will bite him.
After more than 6 months SD still cannot provide logical answers
External auditors asking very simple Qs
WHERE is inventory?, today talk 3 tomo talk 4
WHO is u clients?, today talk east tomo talk west
6 moths ago i SAID
KPMG cakap akaun SD semua Tipo
TAK AKAN EY cakap akaun SD semua Cantik
23/12/2021 1:12 PM
Trader2A boastful claim of accounts being transparent and in order but suing everyone who disagrees with their ' cooked ' books. Even a blind man can ' see ' through what's really cooking.
23/12/2021 1:32 PM
Balian de IbelinFruits => Bursa will announce Countdown to delisting of all Serba shares and affiliated listings on 03/01/2022
23/12/2021 3:44 PM
Yu_and_Meewhat will happen to the fingers behind the scene?
Balian de Ibelinthat could be when you go to a grave yard on a moonless night with a live chicken, a knife and an unmarked grave to ask evil spirits which share to buy.
Author:Ç·earlêhite | Publish date: Tue, 21 Dec 2021, 10:14 AM
From the desk of Serba Dinamik’s Shareholders To Theedgemarkets.com - Clarification on the Articles appearing in Theedgemarkets.com Website
By Pearlwhite 20th December 2021 9.48PM
To Theedgemarkets.com
We refer to the articles appearing in theedgemarkets.com website on 6th December 2021 and 20th December 2021.
In this respect, kindly make an immediate announcement to the differences in the amount of alleged questionable transactions worth over RM4.5 billion versus RM1.438 billion, and any development thereof.
Yours faithfully
Serba Dinamik Shareholders
c.c.: Bursa Malaysia Securities Berhad Listing Department
Bursa Malaysia Securities Berhad Regulation Department
Market Surveillance Dept., Securities Commission Malaysia
“Serba Dinamik’s chairman, independent director quit claiming 'biased regulatory prosecution' towards group”
"Trading in the shares of Serba Dinamik has been suspended since Oct 22, after it failed to disclose the findings of a special independent review undertaken by Ernst & Young Consulting Sdn Bhd (EY Consulting) about an audit issue flagged by its then external auditor KPMG in May about some allegedly questionable transactions worth over RM4.5 billion."
"Bursa’s suit sheds more light on Serba Dinamik’s financials"
"EY Consulting’s findings update recorded in the court documents highlight the same concerns that KPMG had over the company’s transactions. The court documents state that the financial impact on the company from EY Consulting’s findings under the SIR amounted to RM1.438 billion as at Oct 22, 2021."
* In respect of the article, it is recommended that you consult with a Certified Accountant/Chartered Accountant/Chartered Internal Auditor, Chief Financial Officer, Legal Counsel and/or Tax Advisor for advice concerning the article.
It is not recommend that consultations be made with Certified Financial Analyst, Brokers, Traders and/or MBA/MA Finance Graduates as they are deemed not to have the necessary competency and skills to evaluate and advise on such matters discussed in the article.
Author:Ç·earlêhite | Publish date: Tue, 14 Dec 2021, 8:58 PM
Serba Dinamik’s financials are free of financial transgressions and fraud
By Pearlwhite 14th December 2021, 8.58PM
Accounting is a system of capturing financial data to be presented in a meaningful way to provide accurate, complete and appropriate financial information for various purposes. This system, in its most rudimentary form, is called the “double entry system” where a recording of a financial transaction requires two entries (Debit entry and Credit entry).
The key take-away for the purpose of this article is that if fraud were to be committed, it requires two entries for that fraud to happen.
For example, if one were to record fictitious revenue to a RM100 million sale to a customer, it must record a RM100 million fictitious payment from the customer.
A recap of KPMG’s findings was in the areas of Debtors, Payables, Assets (including materials on site).
A) KPMG and Bursa’s Originating Summons did not raise any audit discrepancies with Cash and Cash Equivalents
Below is the financial information pertaining to Revenue and Debtors for Serba Dinamik for the financial years 2016 to 2020. Bear in mind, the same analysis can be applied to Payables.
Financial Year Ended 31 December/30 June (RM'mil)
2021
2019
2018
2017
2016
5 Year Total
5 Year Ave.
(Unaudited)
(Actual)
(Actual)
(Actual)
(Actual)
Revenue
8,606
4,529
3,283
2,722
1,409
20,549
4,110
Debtors & Contract Assets
2,594
1,578
1,018
880
741
6,811
1,362
Amounts not past due
1,521
N/A
N/A
N/A
N/A
Provisions / Bad debts written off
None
None
None
None
None
Assets acquisition in lieu of debts
None
None
None
None
None
Source : Serba Dinamik Annual Report and Quarterly Report
Based on the above information, it can be deduced that Debtors & Contract Assets owed by customers of Serba Dinamik have all been settled within the stipulated timeframes. Which is to say, with Revenues of RM20.5 billion for the financial years 2016 to 2020, only RM2.6 billion remain outstanding as at the end of the financial year 2020.
Granted, there would be cases where customers are unable to pay and there would be instances where customers’ assets would be used for partial repayments and/or bad debts are provided or written off. Serba Dinamik had none of that and it was not a discrepancy for KPMG.
Moreover, Debtor’s payments to Serba Dinamik would be scrutinised and reviewed and the accuracy and completeness of the cash and cash equivalents would further be confirmed by Serba Dinamik’s panel bankers the likes of HSBC, RHB, and etc.,. with bank confirmations which are initiated by the auditors themselves and reverted to by the banks directly.
B) KPMG did not raise audit discrepancies in relation to revenue and debtors being re-classified as expenses
As part of the external audit and Special Independent review, auditors would scrutinise the accounting transactions pertaining to each of the Debtors. In cases of fraud, typically transactions of moving debtor transactions to expense requires detailed review and explanations.
C) The issue for KPMG, were on the confirmations and/or physical/site visits to establish the existence of such customers
Serba Dinamik’s special audit review facing ‘operational matters’
“Hopefully the easing of standard operating procedures on Covid-19 restrictions in different countries can help to expedite the verification process. It depends on agreement or cooperation of all parties involved,” he told The Malaysian Reserve when asked about the date the group will be able to announce the findings.
On the other hand, inability to verify confirmations and/or physical/site visits of customers can also be cross examined against bank receipts / export credit notes / transfer documents, subsequent to the financial year end to determine once and for all, as to the actual location and in some instances confirmation of amount owing in the event that payments are for the outstanding balance.
This verification can be done by the auditors with the banks without the involvement of Serba Dinamik.
In conclusion, Serba Dinamik’s financials are free of financial transgressions and fraud since its customers have been excellent paymasters for the past 5 financial years.
Tactics and methods used to commit financial transgressions and fraud are well documented and known by auditors and financial forensic investigators alike and would always be easy to identify.
It is safe to say, Serba Dinamik's accounting system do not share the hallmarks of XINGQUAN INTERNATIONAL SPORTS HOLDINGS LTD that committed a classic fraud method by falsifying the transactions in the double entry system.
* In respect of the article, it is recommended that you consult with a Certified Accountant/Chartered Accountant/Chartered Internal Auditor, Chief Financial Officer, Legal Counsel and/or Tax Advisor for advice concerning the article.
It is not recommend that consultations be made with Certified Financial Analyst, Brokers, Traders and/or MBA/MA Finance Graduates as they are deemed not to have the necessary competency and skills to evaluate and advise on such matters discussed in the article.
BlacksailsCould be money laundering case whereby its customers are good paymasters
15/12/2021 10:26 AM
AbidjanIf a rating agency rate your company as "RD" (restricted default) that means the company is in distress and unable to make due interest payments to its bondholders. Serbadk and Evergrande are recently rated as "RD" and therefore are in distress.
15/12/2021 12:12 PM
s30wAgree on money laundering. If the income are illegal, this raise even higher concern on the business legitimacy. And if everything is fine, can someone explain why it couldn't service its debt on time? The only explainable guess for me, is the "customer" are something fishy. And since this drama ballooned, they are afraid of their cash inflow being seized / traced when investigation gets more serious and stop paying. Hence the liquidity issue now.
15/12/2021 3:42 PM
fattydadNo need to spend so much time analyze if the audit finding is true or not. One just need to answer a question of why they cannot afford to pat merely $7m coupon interest.
SunnySunshinei3 is now considered a place or a source of fake news?
16/12/2021 10:48 AM
Thirai Thiraviam@ǷearlꙌhite first wrote about SERBADK about six months ago, on June 8, 2021. Since then, he has written around 1,400 posts, all about SERBADK, and nothing else. Relentless.
Author:Ç·earlêhite | Publish date: Thu, 9 Dec 2021, 8:52 PM
Serba Dinamik – A look at the truth from a distance
The latest announcement of Serba Dinamik’s (“SD”) financials as at 30th September 2021, provides some pretty intriguing insights to the ongoing Special Independent Review (“SIR”) saga.
Firstly, we now know that the responses from SD’s CEO in the media was the truth on the impact on its revenue and financing generating capabilities towards SD’s reputation.
We’re building back better than ever, says Serba Dinamik CEO
“I would not lie to say that everything is still normal, there are banks which pulled the brakes. At the same time, there are some banks who are still continuing their support and, of course, we have partners from other parts of the world who believe in us and are convinced of our integrity and technical capabilities.
“There are some business partners … they were not happy and they have actually stopped the collaborations or business ventures we had agreed on, but we have mitigated that with other options and alternatives, and as a result of that, I would say it is still a situation that is manageable.”
Secondly, this had led to the necessary re-structuring of SD in order to mitigate the situation.
New internal organisation structure at Serba to firm up biz operations
By Cheah Chor Sooi 10/01/2021 in Featured, Markets
“This follows a realignment exercise of the group’s organisational chart by its board of directors and top management to ensure a more effective global operation which will ultimately enable the group to continue delivering its shareholder’s mandate.”
Thirdly, with the now audit discrepancies which are not finalised amounting to RM1.438 billion, (refer : The Edge’s “Bursa’s suits sheds more light on Serba Dinamik’s financials” - 29th November 2021), there was no mention that up to RM3 billion worth of audit discrepancies were resolved and why RM1.438 billion remains unresolved. However, in Bursa Outstanding Summons,
"It also sought a court order directing Serba Dinamik to complete the SIR with E&Y or in the event of EY's premature resignation or its termination, the court orders the company to appoint an independent reviewer with international affiliation within 14 markets days for the SIR to be completed."
There are 3 observations to this intriguing statement.
A) Bursa gives the 2 options, either to complete the SIR with EY and not.
In the event that the SIR is completed with EY, why does it need to be completed? Disclosure of the Factual Findings Update (FFU) means that it should be taken as final as its findings and conclusions are accurate, complete and factual.
Does completion of the SIR change the Factual Findings Update outcome in some way?
In the event that the SIR would not be completed by EY, which is what Serba Dinamik has been pursuing, does this mean that Bursa is of the opinion that the EY SIR in whatever status of completion cannot be relied upon? If so, why is it then that the Factual Findings Update be deemed material and relied upon then?
Is this a redemption for Bursa for the way the SIR proceeded with questionable procedural, eventual decisions and execution previously?
B) Serba Dinamik is expected to appoint an independent reviewer with international affiliation. The quickest way and humanly possible way is with Nexia. After all, Nexia is conducting the audit for FY20/21 and would be the logical candidate to investigate what is being currently audited. If so, the SIR can be part of the Auditor's Statement for FY20/21.
Is this an olive branch given to Serba Dinamik to resolve this the quickest and more importantly, with ultimate independence, assurance and credibility?
C) 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.
Serba’s head honcho denies RM4.5 bil audit discrepancies.
By Cheah Chor Sooi 08/02/2021 in Featured, Markets
““Everyone has read the information wrongly; the RM4.54 bil consists of items that shouldn’t be added together. You cannot add costs and revenue together which is how the figure has been derived. This goes against financial literacy,” he was quoted as telling the Free Malaysia Today (FMT) portal.
“Perhaps, people are intentionally trying to sabotage us by exaggerating the numbers. We are not ruling this out.”
Fourthly, in SD’s legal battle with KPMG is looking more likely to succeed given that up to RM3 billion audit discrepancies have been resolved and RM1.438 remains work in progress (refer C).
Serba to sue external auditor for a “sum not small but astronomical”
“As a result, the company (Serba Dinamik) has taken a big hit for something which is not its fault. There is a dire need to seek justice for the company whose reputation has been dragged down (so low),”
Finally, in hindsight, SD has suffered reputational damage from this on-going saga. Given the fact that Securities Commission Malaysia (“SC”) has just initiated its own investigation, despite having seized documents from various SD premises on 18th May 2021, does this also mean SC will issue its own report to validate a completed SIR? What is SC’s response to the RM3 billion that have been resolved?
“The regulator assures the investing public that it has made progress on its investigation and additional resources have been added to the team to ensure the investigation is completed in a timely manner. “
Conclusion
A lot has happened and clearly, even with the conclusion of the SIR, there will be a definately a review on the existing regulations and ways to improve on its efficiency and execution.
That said, SD is on track to redeem itself for continuously telling the truth, both in and outside the courts.
* In respect of the article, it is recommended that you consult with a Certified Accountant/Chartered Accountant/Chartered Internal Auditor, Chief Financial Officer, Legal Counsel and/or Tax Advisor for advice concerning the article.
It is not recommend that consultations be made with Certified Financial Analyst, Brokers, Traders and/or MBA/MA Finance Graduates as they are deemed not to have the necessary competency and skills to evaluate and advise on such matters discussed in the article.
DannyArcherLook at KPower, insider are selling and selling. Do you know why? I think they know time is up.
09/12/2021 9:29 PM
csanthis may be the last article we see from this writer. serba has defaulted on its sukuk coupon payment and should be liquidated if they cannot show to debtholders that they can pay.
Author:Ç·earlêhite | Publish date: Wed, 8 Dec 2021, 12:56 PM
Bursa and TheEdge : Is this auditing standards and is it really good for the capital markets?
By Pearlwhite
30th November, 2021 9.45AM (Updated 30th November 2021 6.40PM)
The revelations made by The Edge in its feature length coverage on 29th November 2021 entitled “Bursa’s suits sheds more light on Serba Dinamik’s financials” is really worth a read. So much so, that the only addition to what is already mainstream knowledge in the entire coverage was the following, apart from highlighting EY’s one sentence finding in the four areas,
“EY Consulting’s findings update recorded in the court documents highlight the same concerns that KPMG had over the company’s transactions. The Company state that the financial impact on the company from EY Consulting’s findings under the SIR amounted to RM1.438 billion as at Oct 22, 2021.”
Recaps are definitely a good way to reinforce how serious EY Consulting’s findings are. For the list KPMG’s findings previously, here it is.
Firstly, the question is that does "EY shared the same concerns" or "EY found discrepancies" a conclusion that cannot be disputed? Not once was there any mention of words that suggests "finalisation", "completion", "conclusion" or some words towards that effect.
Secondly, since EY's findings all concur with KPMG's finding, why is the impact now RM1.438 billion? It is lower than the RM3 billion to RM4.5 billion than previously thought. Are there any explanations for this revised value?
Finally, EY’s opinion that the impact is RM1.438 billion and not more than RM3.5 billion (and possibly up to RM4.5 billion) as previously reported. Does this mean RM2 billion to RM3 billion worth of transactions have been resolved? This is in fact a good progress, since 57% up to 67% of the contentious value respectively has been cleared.
In a nutshell, given these three observations, it is evident that EY’s SIR, albeit still work in progress, had managed to resolve up to RM3 billion worth of transactions. The balance of RM1.438 billion needs to have further audit verification works to be done in order to conclusively close the matter at hand.
When RM1.438 billion is disclaimed against any reliance to be placed on it, it is thus reasonable to have it resolved prior to disclosure even if EY's stands by its work and Bursa stands by it opinion.
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It is not recommend that consultations be made with Certified Financial Analyst, Brokers, Traders and/or MBA/MA Finance Graduates as they are deemed not to have the necessary competency and skills to evaluate and advise on such matters discussed in the article.
