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 →

http://www.scmp.com/print/business/commodities/article/1840942/china-lng-shares-dive-after-research-report-says-stock-wildly

China LNG shares dive after research report says stock ‘wildly overvalued’

PUBLISHED : Friday, 17 July, 2015, 9:16pm
Brendan Clift brendan.clift@scmp.com

Stock recovers from 32pc drop to end 17pc down on claim it is overvalued

China LNG Group shares plunged 32.2 per cent at one stage yesterday as the energy firm swapped blows with a US-based research group which said its stock was more than 18 times overvalued.

Continue reading →

http://asia.nikkei.com/Business/Companies/Toshiba-s-accounting-firm-going-under-the-microscope-next

July 15, 2015 2:00 am JST

Toshiba’s accounting firm going under the microscope next

TOKYO — An accountants’ association will soon look into the auditing company that signed off on years of inappropriately calculated earnings at Toshiba.

The Japanese Institute of Certified Public Accountants will interview accountants at Ernst & Young ShinNihon and check documents for major items they may have overlooked, intentionally or otherwise.

The JICPA could admonish, suspend or expel accountants, depending on what it finds. In cases of material wrongdoing, the association could ask the Financial Services Agency to impose administrative penalties on accountants or the auditing company. Continue reading →

http://www.wsj.com/articles/hanergy-thin-film-says-it-cant-produce-documents-for-regulatory-probe-1437057479

Hanergy Thin Film Says It Can’t Produce Documents for Regulatory Probe; Company says the documents are outside its control

WAYNE MA

Updated July 16, 2015 12:46 p.m. ET

HONG KONG—A Chinese solar-equipment manufacturer being probed by Hong Kong’s securities regulators said Thursday it was unable to hand over documents requested and that it may take legal action against an order that prevents the company from resuming trading in its shares.

Hanergy Thin Film Power Group Ltd., which is under investigation by Hong Kong’s Securities and Futures Commission, issued a statement saying it couldn’t provide financial details of its parent company and billionaire owner Li Hejun to investigators. Mr. Li is the chairman and majority shareholder of both the parent, Hanergy Holding Group Ltd., and the listed unit. Continue reading →

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 →