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. |
The word “cast doubt”. |
125* |
-RM75 |
|
Total : RM1,438 million |
|
4,540 */** |
-3,097*** |
** Source : The Edge Markets - Cover Story: Serba Dinamik in the eye of the storm
*** Source : First revealed by independent media in
Serba Dinamik - A success that was not revealed
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Serba Dinamik - Two thirds cleared with one third being finalised. A little more to go.
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