Samsung Electronics Dubai Engaged in Accounting Scandal

http://www.businesskorea.co.kr/article/11522/disgrace-samsung-electronics-dubai-engaged-accounting-scandal

Samsung Electronics Dubai Engaged in Accounting Scandal

24 July 2015 – 5:00pm

Cho Jin-young

A large-scale accounting scandal has broke out in Samsung Electronics Dubai. The incident was exposed through an internal inspection, and some Samsung Electronics headquarters employees are currently staying in Dubai to go over its accounting data.

The Dubai office, which had annual operating profits of approximately 100 billion won (US$85.5 million), recently reported that it recorded losses in the first quarter of this year. Samsung Electronics, in response, examined its ledgers and uncovered the scandal. Continue reading

Hyundai E&C slides on accounting fraud allegations, inflating profits by reducing its cost-income ratio

Hyundai E&C slides on accounting fraud allegations

24 July 2015

Maeil Business Newspaper

Shares in Hyundai Engineering & Construction declined Friday morning after news reports that its major affiliate Hyundai Engineering is involved in an alleged accounting fraud worth hundreds of billions of won. At 9:48 a.m., Hyundai E&C sank 7.13 percent to trade at 35,150 won. Hyundai E&C, the country’s top builder, owns a 38.62 percent in of Hyundai Engineering. Media reports said Hyundai Engineering inflated profits by reducing its cost-income ratio, a whistleblower was quoted as saying. Hyundai Engineering argued there was no foul play and the individual told a lie due to conflicts with the company.

Stock manipulation: Kumar Wire Cloth Manufacturing Company

Stock manipulation: Kumar Wire Cloth Manufacturing Company

22 July 2015

Moneylife

In just five months, the stock price of Kumar Wire Cloth shot up 858%. Prior to February 2015, there was, literally, no trading Kumar Wire Cloth Manufacturing Company (KWCMC) is supposedly into wire-mesh products for various industries such as pharmaceuticals, textile yarns, and filters, etc. With a market-capitalisation of about Rs3 crore, KWCMC generated revenues of Rs75 lakh for the year ended March 2015, a 20% drop compared to its revenue of Rs94 lakh for the year ended March 2014. In the March 2015 quarter, KWCMC reported a loss of Rs17 lakh. In the previous quarters, too, there was hardly any profit. Poor fundamentals, of course, are no deterrent for its stock price rise. From Rs1.16 on 11 February 2015, in just five months, the stock price shot up to Rs11.11 on 14 July 2015, up 858% or nine times! This humongous rally was possible as the stock hit its upper circuit of 2% in each trading session. In this five-month period, there were just one or two trades in a day. What makes it even more suspicious is that prior to February 2015, there was, literally, no trading. The stock was traded on only four days in the entire calendar year 2014. Such brazen manipulation, of course, does not attract the attention of the market regulator.

Black money: SIT tells Sebi to clamp down on misuse of P-notes; SIT concerned over stock manipulation

Black money: SIT tells Sebi to clamp down on misuse of P-notes

Remya Nair

24 July 2015

Mint

New Delhi, July 24 — The special investigation team (SIT) set up by the Supreme Court to unearth black money has recommended scrutiny of final beneficial owners of so-called participatory notes (P-notes) to curb money laundering using these instruments, stringent action against companies involved in money laundering through manipulation of stock prices and proactive detection of shell companies, among other measures. Continue reading

“Raising money based on false information is fraudulent”: Toshiba issued almost 1 trillion yen ($8 billion) of stocks and bonds when it was inflating earnings statements, leaving the company exposed to possible regulatory fines and investor lawsuits

http://www.bloomberg.com/news/articles/2015-07-22/toshiba-risks-penalties-for-raising-8-billion-on-false-earnings

Toshiba Risks Penalty for Raising $8 Billion on False Profit

by Takahiko Hyuga

July 22, 2015 — 11:24 AM SGTUpdated on July 22, 2015 — 3:23 PM SGT

Toshiba Corp. issued almost 1 trillion yen ($8 billion) of stocks and bonds when it was inflating earnings statements, leaving the company exposed to possible regulatory fines and investor lawsuits. The Japanese manufacturer sold 333 billion yen of shares in a public offering in May 2009, and issued 640 billion yen of bonds from May 2009 to December 2013, data compiled by Bloomberg show. Toshiba President Hisao Tanaka resigned on Tuesday, telling reporters that the company will take seriously a third-party panel’s findings that executives were involved in systematic overstating of profit.

“Raising money based on false information is fraudulent,” said Etsuro Kuronuma, a professor at Waseda Law School. “Toshiba violated the interests protected by the Financial Instruments and Exchange Act.” Continue reading

Audit system failed to detect misconduct at Toshiba; Toshiba scandal is a lesson for all directors asleep at the back; Toshiba Scandal Grew From Numbers ‘Too Embarrassing’ to Show

http://news.asiaone.com/news/asia/audit-system-failed-detect-misconduct-toshiba#xtor=cs3-18

Audit system failed to detect misconduct at Toshiba

A third-party panel, which investigated the accounting irregularities at Toshiba Corp., said in its report Monday that three successive presidents, including President Hisao Tanaka and his predecessor Norio Sasaki, who is now vice chairman, are responsible for the scandal.

Two major factors – the malfunction of the auditing system and the failure to prevent abuses of the top management that was desperate to improve performances – have led to the overstating its operating profits. Observers believe that the problem is deeply rooted in conflicts among the three presidents.

The panel’s report stipulated that the main cause for the improper accounting was a pattern where the top management presented a numerical goal for earnings improvement, dubbed a “challenge,” to each division chief and strongly urged them to achieve the targets. Continue reading

Hanergy Cancels Related-Party Deal with Parent Company to Buy $6.52 Billion Worth of Solar Panels

http://www.wsj.com/articles/hanergy-cancels-deal-with-parent-company-to-buy-solar-panels-1437404090

Hanergy Cancels Deal with Parent Company to Buy Solar Panels

Panel manufacturer said earlier this year it would buy solar panels from its privately-held parent

WAYNE MA

Updated July 20, 2015 9:04 p.m. ET

HONG KONG—A Chinese solar-equipment maker at odds with Hong Kong’s securities regulators said Monday it canceled a deal with its parent company to buy up to HK$50.51 billion ($6.52 billion) worth of solar panels. Continue reading

How an obscure toy maker was transformed into Hanergy Thin Film, a solar group whose value touched $40bn before a dramatic fall back to earth

http://www.ft.com/intl/cms/s/0/68842bf4-24c9-11e5-9c4e-a775d2b173ca.html#axzz3gVTcYgX2

July 20, 2015 6:40 pm

FT Investigation: The strange tale of ticker ‘566’

Miles Johnson, Lucy Hornby and Cynthia O’Murchu

Hanergy Complex Transactions

How an obscure toy maker was transformed into Hanergy Thin Film, a solar group whose value touched $40bn before a dramatic fall back to earth Continue reading

Accounting Scandal Upends Toshiba’s Lauded Reputation; 2 bosses’ rivalry helped fuel Toshiba’s bad accounting; Toshiba may face shareholder lawsuits

Accounting Scandal Upends Toshiba’s Lauded Reputation
22 July 2015

TOKYO — Few companies in Japan convey respectability like Toshiba, the sprawling industrial conglomerate that, to the surprise of many here, has found itself at the center of one of the country’s largest accounting scandals.

Toshiba’s chief executives have for decades sat at the apex of Japan’s establishment — civic leaders as much as business managers, in many people’s eyes. One boss from the 1990s went on to run the Tokyo Stock Exchange, then the national postal system. The company features on a prominent index of businesses thought to combine profitability with clean, modern corporate governance. Continue reading

The 7 Biggest Corporate Scandals in Japan

http://www.bloomberg.com/news/articles/2015-07-21/toshiba-s-accounting-scandal-ranks-among-japan-s-largest-cases

The 7 Biggest Corporate Scandals in Japan

by Dave McCombs

July 21, 2015 — 10:38 AM SGT

Toshiba Corp.’s $1.2 billion accounting scandal, caused by top executives setting unrealistic profit targets, ranks among the largest for Japanese companies. An industrial group that makes everything from nuclear reactors to microchips and home appliances, Toshiba said Monday it must correct profit over more than six years, the biggest such adjustment since Olympus Corp.’s $1.7 billion accounting scandal in 2011. No charges have been filed against Toshiba or its executives in the case. Here is a list of the biggest accounting scandals in Japan. Continue reading