The stock price of GBG rallied 399% unhindered, in three months, despite no business activities Gajra Bevel Gears (GBG) is a dud company. Over the years, accumulated losses have eroded its entire net worth and made the company financially sick. The company stopped all manufacturing after 31 October 2006. In 2010, the Board for Industrial and Financial Reconstruction declared GBG a ‘sick industrial company.’ Over the past few years, GBG made a one-time settlement of the loan accounts of State Bank of India, IFCI, IDBI, etc. The premises of GBG are under the seizure of the provident fund authorities, for recovery of their dues. The PF authorities have now granted GBG an instalment facility for payment. Despite no business activity over the past nine years, suddenly, the price of GBG rallied unhindered from 2 March 2015 to 15 June 2015. In these three months, the stock rose 399% from Rs1.17 to Rs5.84, closing at the upper circuit on every single day.

However, this humongous rally was short-lived; the 15 days that followed, from 15 June 2015 to 30 June 2015, the stock price declined 19% to Rs4.72. This time, it closed at the lower circuit in each trading session. From a trading turnover averaging Rs10,000, for the year ended February 2015, the turnover shot up to average Rs1.11 lakh for the four-month period ended 30 June 2015. Who were the investors in GBG during this four-month period and why a sudden interest in a dud company? Seems like another pump & dump operation to launder money. Will the regulator investigate?

http://www.moneylife.in/article/stock-manipulation-birdhi-chand-pannalal-agencies/42410.html

Stock manipulation: Birdhi Chand Pannalal Agencies

24 June 2015

Moneylife

Despite terrible financials, the stock price of Birdhi Chand Pannalal Agencies appreciated by more than 3451%, or 36 times in 9 months

Birdhi Chand Pannalal Agencies Limited (BCPAL) was earlier in the textiles business. In May 2015, the management decided to change the name of the company to BPCL International Ltd. Earlier, BCPAL had also announced plans to diversify into financial services and take over control of a non-banking finance company. Further, it plans to apply for a dealership of Steel Authority of India’s products. All this is rubbish. Over the past four quarters, BCPAL reported total revenue of just Rs40 lakh and a loss of Rs11 lakh. Yet, over the past nine months, the stock price appreciated by more than 3451%, or 36 times, to Rs559.25 on 11 June 2015, from Rs15.75 on 8 September 2014. In other words, if you had invested Rs10,000, in just nine months, you would be richer by over Rs3.55 lakh. Just one to four stocks were traded in each trading session over the past year, except in a few bulk deals. Each time, the stock hit the upper circuit. However, from 3 June 2015, the trend reversed direction, hitting the lower circuit in each session. Another pump & dump operation? The regulator doesn’t seem to care. The company has some 1,200-odd shareholders. Who are they?

http://ftalphaville.ft.com/2015/07/09/2133993/folli-follie-and-the-receivables-question/

Folli Follie and the receivables question

Dan McCrum

| Jul 09 15:07 | 1 comment | Share

Back in April we jumped on the Folli Follie results conference call to ask the Greek listed jewellery retailer about the unusually large balance for trade receivables in a Hong Kong subsidiary.

Receivables are sales recorded, but where cash is still due from the customer. Wefocused on the total in the Hong Kong entity, audited by a small local firm, because it appears to have been persistently high, at times representing the best part of a year’s worth of revenues. A large and growing receivables balance can signal problems with the quality of sales shipped on a consignment basis. Continue reading →

http://asia.nikkei.com/Business/Companies/Toshiba-reportedly-used-accounting-tricks-to-delay-losses

July 9, 2015 2:00 am JSTbe continues

Toshiba reportedly used accounting tricks to delay losses

TOKYO — Toshiba intentionally delayed booking losses for infrastructure projects by presenting unrealistic cost-cutting plans to auditors, sources familiar with the matter said, raising the specter that a financial watchdog could take action against the company ensnared in a deepening accounting scandal. Continue reading →

Related: (1) Taiwan’s MOF asks banks for details of Chinese loans to two troubled Chinese companies – Frankfurt-listed Chinese shoe company Ultrasonic AG whose executives disappeared with the loan and Golden Meditech (801 HK); TSU raises question of insider trading in Golden Meditech TDRs; FSC boss quizzed on Lien’s Golden Meditech TDRs;

(2) 脐带血功效被夸大 中源协和 (Zhongyuan Union Cell & Gene: 600645 CH) 核心业务受困; 胎盘脐带血自费存储乱象; 脐带血：是生命种子，还是炒作噱头？“变了味”的脐带血; 脐带血保存，一场骗局? 血疑——上海市脐血库事件调查; Inside the Private Umbilical Cord Blood Banking Business: Wall Street Journal Analysis Found Dirty Storage, Leaky Blood Samples and Firms Going Under

Taiwan’s Ministry of Finance specifically asked for details of banks’ lending to two troubled privately-owned Chinese companies – Ultrasonic AG and Golden Meditech Holdings Ltd.

A $60 million, three-year unsecured loan for Frankfurt-listed shoemaker Ultrasonic was accelerated on September 17 after two of the company’s executives disappeared with the loan proceeds. The creditors agreed to enter into further negotiations with Ultrasonic to try to avoid insolvency. Nomura co-ordinated Ultrasonic’s loan, which was signed in early August and Cathay United Bank was the agent. The loan had heavy Taiwanese participation – Chang Hwa Commercial Bank Singapore, Taiwan Business Bank Hong Kong and Taiwan Cooperative Bank OBU joined the deal as mandated lead arrangers. Cosmos Bank Taiwan and Hwatai Bank also participated. Taiwnese banks are now seeking additional protection to keep lending to Chinese companies after Ultrasonic’s high-profile loan default as the risks of lending to mid-sized Chinese companies that are being squeezed by the slowdown mount. “A standby letter of credit or other security on loans for Chinese privately-owned companies is a must for us in light of the Ultrasonic default,” a Hong Kong-based senior loan banker with a Taiwanese state-owned bank said.

Loans for Hong Kong-listed Chinese healthcare company Golden Meditech were also in the spotlight in September.

http://www.reuters.com/article/2014/10/08/loans-taiwan-idUSL3N0S33W120141008

Wed Oct 8, 2014 11:19am EDT

Taiwan’s MOF asks banks for details of Chinese loans

LONDON | BY CAROL ZHONG Continue reading →