Kent T10's comment on SERBADK. All Comments

Kent T10
44 Like · Reply
Brothers and sisters, EY Advisory is not EY Audit, EY Advisory can report any issues they found, but not EY Audit, auditor needs to give opinion on the Financial Statements as a whole, the responsibilities levels are totally different.

Is better and safer to wait till independent report findings and how it was settled, and then whether any Big 4 (except KPMG left) willing to accept the audit.

As 20 years experience auditor (15 years of which in the Big 4), I hope you invest your money more prudently, and really can earn money. After all, earn money is your priority, not to gamble ‘hey’, right?
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Kent T10
Now is not catching falling knives, it is falling bomb, it could give you sparks, it could also give you splashes
2 Like · 3 years · translate
Chee shung Khoo
some people got money is not to further earn, is to find sexcitement
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Kent T10
You are right, my excitement here is not that exciting, losing 75% of money, either from 100k or 1k, is not pleasant
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Ken C
the doubtful point is they don't clarify their account 1st but decide to sue their own auditor 1st
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Chee shung Khoo
ya if fishy then short it
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Glifindol
Does it means EY only give advise, but not doing audit for serbadk?
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Kent T10
Of course not audit, they only perform independent review of all those issues raised by KPMG, and need to report directly to SC, this will not be easy.

After they have their findings (may be same serious, may be less serious, but I don’t expect totally clean), then only the incoming new auditor can make conclusion, even though new auditor (yet to find one) may start their works earlier.

This is really not a time to speculate, it is still in front of door, you don’t know what is in the door.
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10 Like · 3 years · translate
Glifindol
Thanks for your explanation, really appreciate it :)
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Kent T10
By the way, I like Gryffindor too
1 Like · 3 years · translate
Gareth Tan
If serbadk still can't make any decision by this Friday. Then literally will be another round of dropping. I literally frustrated too to invest in such company too!!
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Kent T10
If one day they can appoint a Big 4, and Big 4 willing to accept appointment, that may be a good time, because Big 4 will only accept appointment after careful consideration that they are able to complete the works and handled all such risky issues. Those issues are serious in eyes of auditors, not trivial at all.
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3 Like · 3 years · translate
JH Yap
@Kenapa, nice write-up and well explained. Many people/investors don’t really understand the difference between what the advisory arm do.
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Anthony TF Chong
well said everyone here, I'm really smell and see wise post with good responsibility reply here! keep it up!
2 Like · 3 years · translate
Ian Chong
Means serbadk only have 2 choices. Pwc or Deloitte. And their deadline is this Friday. Not looking good for me
1 Like · 3 years · translate
Kent T10
Well, EY Audit can also be a candidate, and easier, since their advisory team can work more closely and share their works; harder for other Big 4 to share their working paper
1 Like · 3 years · translate
JH Yap
Don’t think EY will pick up the audit, otherwise will have self-review threat. Maybe the other 4 outside Big4 but within Big8.
3 Like · 3 years · translate
wei lun lee
Which audit dare to pickup this job? Later kena sue again
2 Like · 3 years · translate
Kent T10
Yes, Big 4 will be reluctant to accept, unless they able to make assessment that they can handle the risk. That’s why I said if Big 4 accepts appointment will be a better sign. EY Advisory acts only as if Gleneagle Hospital to conduct a full body check, it can come out result and say the patient has cacancer….sohose who rushed in are really brave…
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3 Like · 3 years · translate
yoke lian lew
Don't act pro please, misleading
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James Lim
so you prefer he just give a one liner like you did? hahaha
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Kent T10
Sorry, I am just one of the shoplot auditor, you can ignore me if you don’t like.
5 Like · 3 years · translate
Mycrobitz Tech Solutions
危机、危机,有危必有机。
赌身家的话,你会输得很惨。投资要高回报,就得有两手准备。
1 Like · 3 years · translate
JH Yap
Truth can be a bitter pill and is hard to swallow. But didn’t know facts is even harder to fathom for most... im ex-Kaki-lima auditor.
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Investor IB
Thks kenapa for professional explanation. I only know if major share holder also reduce the share, and resignation for those independent board member, sure got something hide inside.
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Kent T10
IB, thx. There are a few major issues around this counter, not that we can explain as outsider, we can only rely on formal report from SC, Bursa, or independent reports. None of the comments from company management can clear the sky, unfortunately, even if datuks acting in true fact that they sincerely believe they are innocent, only the third parties can clear the doubts now.
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Ivan Wong
What if EY found that issues raised by KPMG are all valid? What action will SC take against Serba? Would this counter be delisted or suspended for trading?
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Kent T10
Ivan, in that case, we will come back here after 10 years loh. Refer to Transmile…
2 Like · 3 years · translate
JH Yap
It depends on the magnitude of the financial impact to the company.

If the figure is too huge and need to impair, it may trigger a few criteria under PN17, like qualified opinion by the auditor, going concern issue, banks may demand repayment of the borrowings because the debt servicing ratio drop below the agreed ratio and if can’t pay, will default on the loan payments, then also if the shareholder funds may dip below 25% of the paid up capital. Under PN17, they will need to regulate their business plan and need Bursa approval. Won’t delist immediately. If they can’t get themselves out from PN17, then will be delisted. Due to the on-going covid, Bursa have relax the classification of PN17 and also giving more time to those affected.

However, the biggest challenge pose will be someone may need to go to jail (assume there is really fraud and manipulation), so the key management may not be there to run the show and business operations may suffer.
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3 Like · 3 years · translate
JH Yap
I would recommend to google and find out more on this “Cockroach Theory”. I remember seeing someone giving a very detailed explanation on the PN17 in the forum and they mentioned about this Cockroach Theory and the effect on the share price and the suggestion to deal with it.
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1 Like · 3 years · translate
Kent T10
JH you are right. There is no single answers to these issues. I was just respond if “all valid” then these are huge issues and has devastating impacts, where then those steps you mentioned will kick in.
1 Like · 3 years · translate
Ivan Wong
Alright, thanks @JH Yap
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JH Yap
Could not paste the link. But do google this “What is a PN17 company? Do you sell or buy its shares”.
1 Like · 3 years · translate
JH Yap
@Kenapa. Agreed. I’m also speaking from “all valid” point of view. Even if partial, it is also a daunting task to re-instill the investors confidence. But personally, I feel the company still can be saved, just whether their current advisors/strategists can play it out well. But definitely not the current chairman.
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2 Like · 3 years · translate
JH Yap
@Ivan. Welcome.

Again, i have to stress im not here to pick side, Im just trying to share some facts/info so that everyone can be better equipped in picking stock to invest.
1 Like · 3 years · translate
Lucas He Mun
yes, mayb delisted after July, around August gua... delisted de stock u also dare to buy??????
1 Like · 3 years · translate
Mie Zar
transmile jail 1 day only..
1 Like · 3 years · translate
Kent T10
Now EY said only accept the appointment subject to cooperation from KPMG, that they can work independently, etc. question is whether KPMG can share their working paper?

Under normal circumstances, yes they may share or even let EY review their papers. But now SB is suing KPMG, so KPMG’s working paper is subject to legal proceedings, I doubt that they still can or willing to share, unless directive from SC/Bursa to them to share, and SB may need to withdraw their case to make way.
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3 Like · 3 years · translate
Kent T10
Roy, we are the shoplot and Kaki-5 auditors.

This reminds me Steven Chow Kung-Fu movie, the two fellows playing Chinese piano “gu-zheng” who ended up naked….
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