Read? Understanding Stock Market Risks - Financial Fraud Risk is real! (4)
CHINA Hongxing Sports' special auditor found that the company overstated FY2010 cash and bank balances by 1.15 billion yuan, while payments were made without board approval at two key subsidiaries.
Trading of shares in the company has been suspended since Feb 28 last year, after external auditors Ernst and Young flagged financial irregularities in its FY2010 accounts. The board appointed nTan Corporate Advisory to carry out an independent investigation on March 1 last year.
nTan said in the report, released last night, that the group had cash and bank balances of 263 million yuan as at Dec 31, 2010, not 1.42 billion yuan as claimed in its initial FY2010 accounts.
In its revised accounts, the group said the disparity was due to expansion expenses, as well as payments to six distributors in the form of short-term interest-free loans among other items.
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Createwealth8888:
A Hen and a Pig were sauntering down the main street of an Indiana town (yes, this is another shaggy dog story!) when they passed a restaurant that advertised “Delicious ham and eggs: 75 cents.” “Sounds like a bargain,” approved the Hen. “That owner obviously know how to run his business. “It’s all very well for you to be so pleased about the dish in question,” observed the Pig with some resentment. “For you it is all in the day’s work. Let me point out, however, that on my part it represents a genuine sacrifice.”
All stocks by nature are risky.
We can only protect themselves by risk control and money management. So you the Hen or Pig when come to investing your money in any one stock?
CHINA Hongxing Sports' special auditor found that the company overstated FY2010 cash and bank balances by 1.15 billion yuan, while payments were made without board approval at two key subsidiaries.
Trading of shares in the company has been suspended since Feb 28 last year, after external auditors Ernst and Young flagged financial irregularities in its FY2010 accounts. The board appointed nTan Corporate Advisory to carry out an independent investigation on March 1 last year.
nTan said in the report, released last night, that the group had cash and bank balances of 263 million yuan as at Dec 31, 2010, not 1.42 billion yuan as claimed in its initial FY2010 accounts.
In its revised accounts, the group said the disparity was due to expansion expenses, as well as payments to six distributors in the form of short-term interest-free loans among other items.
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Createwealth8888:
The Hen & the Pig Go To Breakfast
A Hen and a Pig were sauntering down the main street of an Indiana town (yes, this is another shaggy dog story!) when they passed a restaurant that advertised “Delicious ham and eggs: 75 cents.” “Sounds like a bargain,” approved the Hen. “That owner obviously know how to run his business. “It’s all very well for you to be so pleased about the dish in question,” observed the Pig with some resentment. “For you it is all in the day’s work. Let me point out, however, that on my part it represents a genuine sacrifice.”
All stocks by nature are risky.
We can only protect themselves by risk control and money management. So you the Hen or Pig when come to investing your money in any one stock?
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