tag:blogger.com,1999:blog-9212230152177138609.post2761481174468076513..comments2024-03-29T21:21:29.393+08:00Comments on Bursa Dummy: My Portfolio May21Bursa Dummyhttp://www.blogger.com/profile/02242116696140987141noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-9212230152177138609.post-40036113812798063562021-06-09T20:16:24.573+08:002021-06-09T20:16:24.573+08:00Thanks for your sharing regarding this issue. I th...Thanks for your sharing regarding this issue. I think KPower is the most "innocent" here, I might have done so (buy KPower shares) if I do not own any of those 3 companies' shares. From the explanation slides by Serbadk, I feel that the auditor is somewhat unprofessional.. Serbadk's company governance is also not that solid perhaps it's growing too fast..Bursa Dummyhttps://www.blogger.com/profile/02242116696140987141noreply@blogger.comtag:blogger.com,1999:blog-9212230152177138609.post-32283279711906012882021-06-05T09:14:38.118+08:002021-06-05T09:14:38.118+08:00What i concern is KPower that i have just invested...What i concern is KPower that i have just invested. But, its stock price movement links to Serbadk thus i have to monitor the development of Serbadk's audit issue too. If Serbadk goes down, it will drag down KPower albeit from the evidence available now, both companies are operating independently.value88https://www.blogger.com/profile/14876933285749820353noreply@blogger.comtag:blogger.com,1999:blog-9212230152177138609.post-40436283051744156892021-06-05T09:11:25.839+08:002021-06-05T09:11:25.839+08:00Kenanga analyst commented that the worst case scen...Kenanga analyst commented that the worst case scenario would be KPMG issues a qualified audit report to close the issue. Qualified audit report means an audit with discrepancies and Serbadk management has to rectify the discrepancies which could be, for example, make write-off or impairment on receivables, onsite material & etc, depending on the discrepancies confirmed and found. <br /><br />My friend views this as negative if it happens but he also opines that the Serbadk case should not (or cannot) be as serious as the fraud case like what happened to Transmile and Megan Media years ago which caused the companies delisted from Bursa. Thus, if the discount given in stock price now is enough to compensate for the potential impairments, write-off (and also the tainted image), it is not totally wrong to pick up some Serbadk at depressed stock price.value88https://www.blogger.com/profile/14876933285749820353noreply@blogger.comtag:blogger.com,1999:blog-9212230152177138609.post-72869334646237995002021-06-05T09:04:35.846+08:002021-06-05T09:04:35.846+08:00"The big news in the stock market in May shou..."The big news in the stock market in May should be none other than Serba Dinamik's audit issue."<br /><br />I consulted my Chartered Accountant friend who worked in KPMG before on Serbadk's audit issue. We both looked through the 4 issues highlighted by KPMG and the replies given by Serbadk. His feedback is, in short, KPMG's raised issues are "logical", and the replies given by Serbadk management are also "logical". <br /><br />For example, it is logical for KPMG to raise doubt on why 11 of the 12 customers didn't feedback and therefore they stated some sales transaction, receivables and onsite materials cannot be verified. It is also not abnormal for Serbadk's customers ignore/overlook an external auditor's (not their own auditor) question as they do not oblige to reply. They then replied after Serbadk personally contacted them, and Serbadk ask the auditor to do so again but KPMG didn't. Additional note is Serbadk has secured cash proceeds for the 72% of the above-mentioned sales. According to him, the cash flow should not be fake.<br /><br />Another example is it is logical for auditor to raise doubt on why five Serbadk's suppliers were found to have only paid-up capital of RM100k but able to do sales transaction between RM60mil to RM96mil. This kind of incident would be absurd in Western countries. But, it is quite normal to happen in Malaysia due to, as what Serbadk has explained, the Vendor Development Programm to develop Bumiputra vendors.value88https://www.blogger.com/profile/14876933285749820353noreply@blogger.com