So we know the 'problem' in Silver Bird is dead serious.
The company has suspended the managing director Datuk Jackson Tan Han Kook, executive director Derek Ching Siew Cheong and general manager of accounts and finance Lai Poh Mei. To make it more serious, Jackson Tan Han Kook owns is a major shareholder as he owns some 44 million shares in the company.
The auditors had made a huge statement by claiming many discrepancies and financial irregularities in the company's accounts. ( See announcement made on Bursa: OTHERS )
And to top if all, Silver Bird has defaulted some 5.368 million of banking facilities repayment. ( see Microsoft Word - Appendix A for PN1 Announcement.pdf )
Now this is where it was puzzling for some.
The following link is Silver Bird's last quarterly announcement made on Dec 2011: Quarterly rpt on consolidated results for the financial period ended 31/10/2011
Open the pdf file attached. : SBGB_Q4 2011.pdf
Page 2, under Silver Bird's current assets, it states
Fixed deposits with licensed banks: 3.704 million
Cash and bank balances: 34.699 million.
( note: the previous year Silver Bird had much more moeny! )
So much money and yet Silver Bird has now defaulted in banking loans repayment of 5.368 million?
What is happening here?
Well, for starters, that link and the pdf represents Silver Bird's un-audited accounts. And we all know that Crowe Horwath has now stated that there's so many financial irregularities. ( Financial irregularities? Isn't that a nice way too say it? )
Do see the audited accounts: Annual Audited Accounts - 31 October 2011. And if you open the pdf file, Crowe Horwath is saying that the cash balances should be much less!
Which begs the question, where is the Moola???
Did some hungry and angry bird wallop all the moola??
Did the moola went to moola heaven?
With Silver Bird defaulting in its payment, one really wonders how much REAL money is there in Silver Bird's accounts.
See the mess? With such a mess, it's understandable why the MD is suspended. Was it poor management? Or is there something worse? I dunno.
Which begs us to ask about the other financial discrepancies addressed by the auditors. What is real and what isn't?
And finally, this leaves one with Silver Bird's total borrowings of 147 million!!!!
Where and how is Silver Bird gonna fix this massive problem?
And Lembaga Tabung Haji, which is a major shareholder ( you can note that LTH had been a frequent seller of Silver Bird's shares last year), is left with a huge fine mess. Frankly, I have no idea why LTH wanted to be a shareholder in the first place. Why? Was there real justifications to invest in this company? Me thinks? I think they being caught with their pants down on a lousy investment gotten much, much, much worst!
Where is all the money gone? Went into bakery oven? That is one of chat I heard in kopitiam.
ReplyDeleteIs this one of the risk for PLC which also own by major shareholder cum management...???
Investing is always risky.
ReplyDeleteI think... when one invests long term in a stock, one really, really needs to understand the company and the more importantly the owners.
Hi Moola,
ReplyDeleteThis is not related to Silverbird. Just wanna comment that you should have a once a quarter post asking for comments on stocks they like. Just like what you did a few months ago. Its useful and fun sharing info.
Anyway, you're doing great so keep it up exposing those crooks!
Where has all the dough gone? Sorry, I couldn't resist.
ReplyDeletesomebody has to be punished at the end of the investigation
ReplyDeleteAnd whatever happen to Megan Media' boss?
ReplyDeleteAnd whatever happen to Kenmark boss?
:(
Moo,
ReplyDeleteAfter interim audit of the Silver Birdie, the auditors would reasonably be expected to highlight to the Audit Com about significant findings observed during the course of their field work.
I wonder hor....were there any serious due enquiries by the Audit Com (independent directors)on the Management about the significant audit findings ?
Was there any satisfactory answer being given by the Management ?
These worms might have gone out of the can much earlier and crawling everywhere :P