Yahoo Finance 
Deloitte report refutes short-seller’s allegations against Silverlake Axis
The independent probe was launched last August.
The tech company has finally gained some measure of retribution as Deloitte Singapore’s independent in-depth report strongly refuted most of the claims made by an anonymous short-seller’s report.
According to RHB Research, Deloitte’s in-depth 55-page report strongly rebutted most of the claims, and provided explanation with the help and information provided by Silverlake Axis.
“Deloitte also recommended a proper fee quotation procedure from Silverlake’s private entities and cited the lack of clarity in terms of cost allocations, in line with our earlier highlight. We think this report should clear up existing uncertainty and beef up investor confidence,” RHB Research said.
However, Deloitte said some information remained lacking for it to determine whether the costs charged by Silverlake-related private entities are commercially competitive in nature and recommended that additional and/or alternative procedures to be put in place.
“In addition, its comparison among industry peers like Microsoft, SAP and Oracle did suggest that, while the gross margins were in line, operating margins for Silverlake were much higher. This was due to lower R&D expenses incurred, enhancing the possibility that such expenses are incurred more by the aforementioned private entities,” RHB added.
More From Singapore Business Review
