Serba Dinamik Holdings

[weijian]

Sporean investors might be familiar with Serba Dinamik as they were once substantial shareholders on CSE Global on the local bourse. 

It is rare to have auditors red flagging companies. It is even rarer the company wants to sue their own auditors for "red flag negligence" (whatever that is supposed to mean)

Malaysia bourse wants independent review of oil firm's deals after auditor's red flags

"To provide clarity to the market, it is imperative that (Serba Dinamik) undertake the necessary steps to appoint the independent reviewer immediately to address the uncertainty surrounding the veracity and accuracy of the matters, as highlighted by its external auditors, in a timely manner," Bursa Malaysia said in a statement.

The exchange also asked Serba to provide a timeframe for the appointment of the reviewer.

It was not immediately clear what the consequences will be for Serba if it did not fulfill the exchange's requirement.

Serba said earlier this week it has taken legal action against KPMG, saying the auditor "negligently red-flagged some issues". KPMG responded by saying it will vigorously contest any court proceedings.

https://www.businesstimes.com.sg/stocks/...-red-flags

[i4value]

There has been much controversy about the Bursa energy company - Serba Dinamk Bursa. Its ROE had gone from about 20% in 2019/2020 to negative 100 % in 2023. I will not go into whether this is poor management or poor corporate governance. But I was curious about its Altman Z-score. 

The Altman Z-Score is a financial metric that is used to assess the financial health of a company. It was developed by Edward Altman in 1968 and is designed to predict the likelihood of a company going bankrupt within the next two years.

• A Z-Score above 2.99 suggests that the company is likely in good financial health and is not at risk of bankruptcy.
  

• A Z-Score below 1.81 suggests that the company may be at risk of bankruptcy.
  

The Altmaz Z-Score for Serba Dinamik based on its Sep 2023 LTM financials is negative 1.9. This is way below the Z-Score for bankruptcy.

Now why would you want to bother about this company when there are better oil and gas companies like Deleum to look into with a LTM ROE of 15%.

In 2023, the Bursa energy index grew by 5.3 % compared to the S&P500 energy index that declined by 3.7 %