Author: bambooinnovator

PwC’s great Noble Group disclaimer

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http://ftalphaville.ft.com/2015/08/10/2137006/pwcs-great-noble-group-disclaimer/

PwC’s great Noble Group disclaimer

Izabella Kaminska

| Aug 10 18:52 | 4 comments | Share

So, PwC’s review of Noble Group’s accounting and management practices — commissioned by Noble Group and released on Monday — puts the commodity trader firmly in the clear with regards to the way the company records profits on long-term sales and marketing deals. It is, at the very least, consistent with industry practice. But for posterity’s sake we thought we’d stick up the sizeable PwC disclaimer list that precedes the actual findings. The FT’s Neil Hume and David Sheppard further draw attention to the fact that the commodity dealer is to cut 16 per cent of its staff and seek asset sales or new financing deals as it continues to face difficult trading conditions. There are also reports emerging of Noble approaching a prominent dealmaker Michael Klein to review its options.

Noble_PwC1Noble_PwC2

PwC report unlikely to be enough to satisfy market

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http://www.businesstimes.com.sg/companies-markets/pwc-report-unlikely-to-be-enough-to-satisfy-market

PwC report unlikely to be enough to satisfy market

R Sivanithy

12 August 2015

Business Times Singapore

AFTER an encouraging early bounce to S$0.645, Noble Group’s shares on Tuesday finished S$0.01 weaker at S$0.57, a disappointing outcome for those who might have been hoping that a positive assurance report by accountants PricewaterhouseCoopers (PwC) on Noble’s accounting practices would have been enough to answer Noble’s critics – namely, Iceberg Research, which issued its first critique in February, short-seller Muddy Waters, which emerged soon after, and former investment banker Michael Dee. Continue reading →

The trouble with non-binding takeover offers that create a false and manipulated ceiling for the target company’s shares which could be pledged or faced margin calls; There are numerous examples of where such buyouts have ended in tatters and some investors getting burnt

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http://www.thestar.com.my/Business/Business-News/2015/07/21/The-trouble-with-nonbinding-offers/?style=biz

The trouble with non-binding offers

Tuesday, 21 July 2015

By: RISEN JAYASEELAN

IT has happened again. A buyout deal in which the offerer had stated a takeout price but subject to a due diligence exercise, has fallen through. This again raises the question of whether such conditional buyouts should have a disclosure of the proposed buyout price. The perennial concern in deals like this has been that the disclosure of a buyout price would create a false ceiling for the target company’s shares. There are numerous examples of where such buyouts have ended in tatters and some investors getting burnt (see table). Continue reading →

Stuck in intervention rut; An upward manipulation of corporate earnings may be next on the agenda for Beijing as it continues to support tumbling stock markets

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Stuck in intervention rut; An upward manipulation of corporate earnings may be next on the agenda for Beijing as it continues to support tumbling stock markets

Cathy Holcombe

4 August 2015 South China Morning Post

We can criticise Beijing for intervening in the stock market, but while up on that soapbox we might as well pull out the telescope and look to what’s coming next. Which is likely this: an upward manipulation of corporate earnings. Continue reading →

How Toshiba delayed a $100 million loss with two words: ‘uncorrected misstatement’

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http://www.reuters.com/article/2015/08/05/us-toshiba-accounting-auditor-insight-idUSKCN0QA2H120150805

Wed Aug 5, 2015 5:09pm EDT

How Toshiba delayed a $100 million loss with two words: ‘uncorrected misstatement’

TOKYO | BY NATHAN LAYNE AND EMI EMOTO

As more details emerge about years of accounts manipulation at Japanese conglomerate Toshiba Corp (6502.T), corporate governance experts say there needs to be more scrutiny of the role of the company’s auditors. Continue reading →

Stock manipulation: Sapan Chemicals

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Stock manipulation: Sapan Chemicals

5 August 2015

Moneylife

The share price of Sapan Chemicals was up 743%, in just about six months. On an average, there were just three-four trades per day Sapan Chemicals—earlier known as Suryadeep Salt Refinery & Chemicals Works—is into ‘development and marketing of software along with consultation for portfolio management’, according to its annual report. The Vadodara-based company, in its former and present avatars, has been pulled up several times by Securities and Exchange Board of India (SEBI) for capital market violations. In August 2014, the regulator charged it with the creation of an artificial market and price manipulation through matched transactions in the scrip of Kelvin Fincap. The company got away with a minor suspension. This was not the first time. In May 2006, too, a prosecution was launched against the promoter, Rajendra Rathod, for fraudulent and unfair trade practices. Continue reading →

Aluminium products maker China Zhongwang hit with book-cooking and fraud allegations; Liu and parties related to him took out some HK$36.5 billion in loans from mainland banks, and used the funds to buy Zhongwang’s aluminium products since 2011. HK$38.5 billion of Zhongwang’s revenues has been “fraudulent sales to Liu-controlled undisclosed related parties”. “If Zhongwang is on the hook for these loans, it could be insolvent.”

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http://www.scmp.com/print/business/china-business/article/1845884/aluminium-products-maker-china-zhongwang-hit-withbook

http://www.ft.com/cms/s/0/7f435e00-375c-11e5-bdbb-35e55cbae175.html#axzz3hlGdUDJX

http://www.reuters.com/article/2015/08/03/china-zhongwang-aluminium-report-idUSL5N10E01020150803

Aluminium products maker China Zhongwang hit with book-cooking and fraud allegations

PUBLISHED : Sunday, 02 August, 2015, 8:45pm

Eric Ng eric.mpng@scmp.com

Extruded products maker China Zhongwang says short seller’s claims are groundless and auditors have never cast doubt on statements

China Zhongwang Holdings, which raised HK$9.8 billion from an initial public offering in Hong Kong in 2009, is fighting allegations from an unknown short seller, Dupre Analytics, that chairman Liu Zhongtian and his family have been siphoning money from the company.

Zhongwang suspended its share trading on Friday after Dupre published the report and said in a stock exchange filing the allegations were “groundless”, adding its external auditors had never cast doubt on its financial statements since its listing.

In the 51-page report, Dupre said Liu and his family were committing “the largest and most complex China fraud ever uncovered” and have “systematically defrauded investors, [fabricated] at least 62.5 per cent of revenue since 2011 and likely skimming billions of [capital expenditure] from the delayed [production facility] in Tianjin”.

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China’s Sihuan Pharm (460 HK) reports long delayed earnings and accounting overhaul; Sihuan’s auditor PwC issued a disclaimer of opinion as it was unable to obtain sufficient evidence to form an audit opinion.

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http://www.scmp.com/print/business/companies/article/1846052/chinas-sihuan-pharm-reports-long-delayed-earnings-and-accounting

Related postings: Late audits halt trading in Morgan Stanley-backed stocks Tianhe Chemicals (1619 HK) and Sihuan Pharmaceutical (460 HK); Sihuan (460 HK) Updates on Audit Delay: Improper accounting treatment in consolidation trick of using MRAs (Market Research Agents) to exclude hidden sales and distribution expenses to artificially boost profits

China’s Sihuan Pharm reports long delayed earnings and accounting overhaul

PUBLISHED : Monday, 03 August, 2015, 10:11am
Jing Yangjing.yang@scmp.com

Sihuan Pharmaceutical released its long-delayed 2014 annual earnings on Monday morning, and major restatements of its financials involving its sales and marketing activities.

Sihuan, one of mainland China’s largest prescription drugmaker, reported net profits up 30 per cent to 1.7 billion yuan (HK$2 billion). The earnings were released four months later than required, as the company, backed by a Morgan Stanley private equity fund, had to rectify some of its accounting practices.

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How FTIL lost face in the two years since NSEL crisis; Only time will tell if the 30,000 investors that regulators claim lost in the scam would get back their money and whether the real guilty entities will get any kind of punishment.

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How FTIL lost face in the two years since NSEL crisis

Ashish Rukhaiyar

31 July 2015

Mint

Mumbai, July 31 — Shares of Financial Technologies (India) Ltd (FTIL) closed at Rs.541.55 on 31 July 2013, a level it has never reached in the two years since the Rs.5,574 crore settlement fraud at the National Spot Exchange Ltd (NSEL) came to light. FTIL holds 99.99% stake in NSEL. Continue reading →

Castex Technologies, a subsidiary of auto component major Amtek Auto, in share price manipulation scandal

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Bondholders cry foul on Castex Technologies’ FCCB move

Pranav Nambiar

1 August 2015

Financial Express

Castex Technologies, a subsidiary of auto component major Amtek Auto, on Friday passed a resolution calling for the conversion of its $200 million foreign currency convertible bonds (FCCBs) into equity, despite bondholders writing to the company and the Securities and Exchange Board of India warning that the move is possibly the result of a manipulation of stock prices, report Pranav Nambiar, Pallavi Ail and Ankit Doshi in Mumbai. The bondholders have also requested Sebi and the exchanges for an investigation into the matter. Continue reading →