Companies
Noble accounting saga: It’s the message that counts, not the messenger; Michael Dee: Due to the PwC conflict and the review committee’s complete and total conflict of interest, this process should be shut down and disbanded. The SGX has again let down investors by “welcoming” Noble’s conflicted insider and completely misnamed “independent” committee.
Noble accounting saga: It’s the message that counts, not the messenger
28 July 2015
Business Times Singapore
MS Christie Loh (“Iceberg does not deserve the legitimacy it is being given”, BT, July 23) displays an unhealthy trait of shooting the messenger. In criticising all and sundry for writing about the accounting and corporate governance issues in Noble Group, she did not offer any evidence to refute what has been said about Noble. One may question her motivation for her missive against Noble’s critics. Continue reading
Shanghai-HK Connect program eliminates Hanergy
http://www.globaltimes.cn/content/934141.shtml
Shanghai-HK Connect program eliminates Hanergy
By Huang Ge Source:Global Times Published: 2015-7-27 23:23:01
Hanergy Thin Film Power Group, a solar-power technology company, was removed from the Shanghai-Hong Kong Stock Connect program, not long after it was eliminated from the Hang Seng Index, news portal caixin.com reported on Monday. Continue reading
Samsung Electronics Dubai Engaged in 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.
“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
Toshiba Risks Penalty for Raising $8 Billion on False Profit
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
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
AsianExtractor: Unearthing Accounting Fraud in Asia 