Good luck for those with optimistic view

Cut loss. PN17 and dropping to 10 sen

Anyway, the funny thing is that the directors are still moping up the shares.

Power investing

1334% yoy profit of more than 10 million

Pullback is on all counters if there is any. Upcoming announcement of ex-date with good QR will keep it steady

(i) Certain suppliers’ invoices do not have registration number;
(ii) 2 suppliers and 2 customers companies stamp did not bear registration number;
(iii) Differences in the names contained in legal contract agreement, invoices, user
acceptance test and customer companies’ stamp;
(iv) Differences in addresses contained in legal contract agreement compared to
customers’ website;
(v) 6 out 7 customers will make direct payment to subcontractors and the Group will
receive the net amount; and
(vi) 3 customers have minimal share capital and were only incorporated in 2019 and
2020, one of the customer’s principal activities do not appear to be IT related.
KPMG viewed that they are unable to determine the appropriateness of the contracts and
transactions as well as the revenue and cost recognized based on the above.
Management’s Action / Reply to queries:
In relation to (i) to (iv)
- The Management noted that KPMG had extracted the wrong address from the
document.- Informed KPMG that there is no requirement for the company in the said jurisdictions
to put company’s registration number in the invoices but nevertheless the said
number was stated at the bottom page of the invoices
- There is no requirement for the company in the said jurisdictions to put company’s
registration number in the stamp
- With regards to the different name, there is no significant differences in the name
which has been highlighted e.g. “Ltd” or “Limited” / LLC against L.L.C
- In terms of legal contract agreement against the website address, (1) in one of the
company, there was a slight typo in the address and; (2) for another case, the
contract is as per the place of business whilst the website stated their registered
office.
In relation to (v)
The mentioned subsidiary has entered into a triparte agreement at client’s request where
payment will be made directly to the sub-contractor. The Company is of the view that the
subsidiary acted as a principal to meet the contract’s obligations and hence, we believed
that this subsidiary is able to recognize the revenue and cost associated with the contract.
In relation to (vi)
The Company does not view that its customers’ profile must include huge paid-up capital
in their books so long that the relevant customers are able to secure the contracts from the
ultimate contract awarder and meet the legal requirements to perform such contracts.
In relation to the company of which the principal activities do not appear to be IT related,
there is no legal restrictions for them to participate in any other business activities.
The Company has responded to KPMG on all queries on 6 May 2021 and to-date, KPMG
has yet to revert with the above.
3. APPOINTMENT OF AN INDEPENDENT FIRM AND SCOPE OF WORK
The Board is targeting to appoint an independent firm to review the accuracy and veracity
of the matters highlighted by the external auditors as stated above in June 2021. In
conjunction, the scope of the work in relation to the above shall be finalised accordingly.
The relevant procedures will include among others the review process and determination
of appropriateness of the item as highlighted in Paragraph 2 above.
The Company will make an announcement to this effect immediately upon the finalisation
of the aforesaid appointment.
4. IMPACT ON FINANCIAL AND OPERATIONAL OF THE COMPANY
The Company is not able to substantiate the impact pending the review by the
independent firm. The Company takes the view that there is no issue with regards to the
legitimacy and existence of the contracts as well as the value that will render any material
impact to the financial and operational aspects of the Group for the financial year ending
30 June 2021.Further announcement will be made once the impact, if any, can be ascertained.
5. MEASURES / STEPS TO BE TAKEN BY SDHB TO ADDRESS THE MATTERS
UNDER REVIEW
The Company has taken and will be taking the following steps:
 Reverted with reply to queries to the external auditors on 6 May 2021;
 Provided the necessary information including contact details of the relevant parties as
requested by the external auditors to satisfy their extended procedures requirements;
 Provided all outstanding audit information as requested by the external auditors; and
 Constantly attempt to engage with the external auditors to resolve matters on hand
6. ESTABLISHMENT OF INDEPENDENT COMMITTEE
The Company is setting up an independent committee to manage and handle the matters
in relation to the independent review, that will report to the Board of Directors.
The composition of this committee will mainly comprise of Non-Executive Directors, Legal
Advisors, Internal Auditors, Company Secretary and Representative of the management.
This announcement is dated 28 May 2021.

SERBA DINAMIK HOLDINGS BERHAD
Type : Announcement
Subject : OTHERS
Description : SERBA DINAMIK HOLDINGS BERHAD (“SDHB” OR THE
“COMPANY”)
SPECIAL INDEPENDENT REVIEW
1. INTRODUCTION
We refer to our announcement made on 25 May 2021 and Bursa Malaysia’s query on 27
May 2021 the above captioned matter.
On behalf of the Board, we wish to announce the following additional information in
relation to the aforesaid matter.
2. DETAILS OF THE MATTERS HIGHLIGHTED BY THE EXTERNAL AUDITORS
The Company wishes to inform that the matters raised mainly by the external auditors on 3
May 2021 pertaining to the statutory audit relates to the following:
2.1 Certain customers’ confirmation relating to sales transactions, trade receivables
and material on site balances
Issues raised by KPMG:
- KPMG had sent out confirmations on the aforesaid balance where only 1 reply out of
12 customers was received by KPMG.
- In order to hasten the process, the Company had subsequently sent a second
confirmation to the remaining 11 customers with same amount as in our first
confirmation to the relevant debtors of which all have replied.
- Based on the meeting dated 3 May 2021, KPMG has yet to test the completeness and
- is not able to verify the authenticity of the confirmations identified nor validate the
person signing the confirmation.
Management’s Action / Reply to queries:
In addressing the above queries, the Company had carried out the following:
- Proposed to arrange for interviews and other means of communication between
KPMG and certain debtors to clarify matters;
- The Board also suggested to KPMG to send the third confirmation;
- Requested KPMG to share the signed confirmation that was in contentious for the
Company’s further investigation; and
- Commitment to continuously assist KPMG.The Company has responded to KPMG on all queries on 6 May 2021 and to-date,
KPMG has yet to revert with the above.
In respect to the 11 confirmations received which KPMG as stated above accounted for
total sales transactions of RM2.32 billion, trade receivables balance of RM652 million
and materials on site balance of RM569 millions.
2.2 Certain transactions on purchases and trade payables balances on local supplier
Issues raised by KPMG:
- 2 local suppliers were incorporated on the same day
- 4 local suppliers were found to have the same registered address as the 2 local
suppliers above
- 5 suppliers out of the 6 suppliers were noted to have paid-up capital of RM100,000
each where each supplier is owned by an individual shareholder despite having
transactions which ranges between RM60 million to RM96 million.
Management’s Action / Reply to queries:
Choice of local suppliers
The Government of Malaysia has implemented the Vendor Development Program
(“VDP”) since 1998 of which the objective is to develop Bumiputera vendors to be
successful in the manufacturing and services industry.
The Company has become PETRONAS vendor in 1997 and graduated from
PETRONAS vendor in 2007 and subsequently, the Government has appointed the
Group as the anchor company for the program.
The aforesaid suppliers are assessed and recommended by supply change
management under the VDP. Companies that were appointed as the Group’s vendors
do not require to have huge share capital as a condition to assign and fresh vendors
will also be considered, through VDP.
Same address of local suppliers
Company has informed that the registered address was actually the company
secretary’s office and these companies are using the same secretarial services.
Arrangement on further interviews with the local suppliers
2 suppliers have agreed to meet up with KPMG. Notwithstanding, KPMG has yet to
take any further action.
In respect to the 6 local suppliers as mentioned above the total transaction amounting
to RM481 million as stated by KPMG.
The Company has responded to KPMG on all queries on 6 May 2021 and to-date,
KPMG has yet to revert with the above.
2.3 Further information relating to customer and supplier in Bahrain
Issues raised by KPMG:
- Office address cannot be located on physical site for our supplier and customer.- KPMG has noted fax contact number of the customer as indicated in the official
website is registered under one of the Group’s employee but using ‘Truecaller’
application.
Management’s Action / Reply to queries:
KPMG has sighted the wrong address and accordingly management had on 6 May 2021
provided KPMG with right address.
Management had provided KPMG with the official telecommunication bill from the
provider.
KPMG has stated total sales transactions of USD101 million and trade receivables
balance of USD24 million.
The Company has responded to KPMG on all queries on 6 May 2021 and to-date, KPMG
has yet to revert with the above.
2.4 Trade receivables balances and sales transactions for information technology
contracts
Issues raised by KPMG:
KPMG had noted that there was no company registration number and registered business of
the customers as indicated in their respective contract

Why buy OR at 1 sen if can easily get at half sen. If want to subscribe, just get 100 shares and the balance apply excess.

May easily cross 30 sen by this week

Yes, 50 sen could be easily reached.The adage 'sell in may and go away' got another 3 days. On announcement of bonus date, may cross 50 sen

So many water fish get caught. Now those applying for RI are in for a bigger shock.

Should cross 50 sen soon. Share price up even in sea of red for the past week

It doesn't make sense that a company generating 4 billion profit for the next 2 to 3 years will have a pathetic 3.5 pe. Mr market will decide the share price.The rest wait patiently.

Another lying statement from this old geezer. Now he regrets very selling below 5.00

Also must teach children not to lie after buying a counter than badmouth and and downgrade after selling.

Manage to sell at 28 sen after buying at 16sen on 22/4. Not bad for a 8 days return.

You sell, others are collecting. It will shoot pass 40 sen soon.

This counter has proved that all the naysayers are wrong. I believe it may go up to 30 sen soon.

How does he know that there will be reduced profits for the upcoming quarters. Another bullshit prediction

With all the negative comments from KYY, the glove stocks seems moving higher and higher. Looks like market has weaned out from this old man.

Dickyme, you must have a short dick

The OR starts trading on 26/4

35 sen possible

haha so many water fish

May drop below 15 sen soon

What to investigate? If they haven't broken any law and going by the book, no one can touch them. Keep dreaming you guys

highly likely it may drop below 15 sen

I wonder why people still follow his suggestions and recommendations?

It was TP of 100 for Top Glove and above 50 for Heng Yuan

just don't buy anything he buys

Please understand properly, short listed companies who have won.

epf selling but someone is buying big. Support is well maintained. Expect a rally coming week with QR and dividend announcement.

Are they dependent on vaccine alone?

They may declare around 20 sen dividend since they didn't declare in August last year

Capital appreciation is more important

The QR will be out soon. Hope its good and a good dividend will be announced to bring it to the next level

With so many upcoming projects, its a matter of time before it shoots up again

Will easily cross 6

here comes 15

Why so many are hard up for dividends when growth of the company's share or capital gain is more crucial for investors.

What he said about the stock being undervalued is correct.

Target price 5

listing date of warrant is on 16/2

Whats the point of high dividend. Most important is capital appreciation.

share split to 4 announced

Hold tight with likely announcement of dividend next month

Hope it could cross 1.00 soon

AtomicHabits Fully agree with you.

Many commented when they announced the corporate exercise that the PE is too high. The share rally has proved them wrong.