Posted by ks55 > 2015-05-12 11:10 | Report Abuse

Can it be just like Transmile, where previous quarters profits were all dubious?
International MNC with big four as auditors like Enron could cheat for many quarters, so nothing is impossible for Malaysian companies.

Posted by ks55 > 2015-05-12 11:14 | Report Abuse

A good buy at 60 sen. Public Invest Research gave TP at 1.12 even after the announcement Masteel not able to provide audited account.......
Really a world class analyst that can bring you to holland faster than anybody else.....

Posted by TengkuFaisal > 2015-05-12 11:17 | Report Abuse

all the profit are fake. how could steel manufacturer make profit when China is dumping steel below cost all over the world.

Posted by r°Moi > 2015-05-12 11:26 | Report Abuse

Posted by r°Moi > May 4, 2015 02:32 PM | Report Abuse X

Based solely on the 4Q14 results announcement.. r°Moi think the two most likely shits would be....



1. Bad debts not accounted for...

How 1MDB's cash flow problem messed with the goverment pocket is well known.... It is well known too properties sales have slowed.... and these will cause contractors and developers alike to face with tight cash flow problem. This will in turn work its way up to the suppliers of materials.....

In MASteel... its customers in fact have actually slowed down in paying up...

Got bad debts or not??



2. Plant and machinery overstated...

This.. if true.. will involve the making of police report and possibly MACC too. Very very very messy.


Bills ok or not?? Some tangible parts are like not so tangible leh??

It would be brilliant but totally ruthless... totally ruthless... if part of that money had been used to convert the warrant recently.


These are just guesses not allegations.







What could it be? The 2014 unaudited financial statements have seen receivables jump a substantial RM92.5m from RM239.4m last year to RM331.9m currently, though that can also be explained by its revenue growing at a similar quantum. That said, a 1-for-1 increase is uncommon, implying inexplicably long credit terms given. Either that, or some overdue receivables may be deemed irrecoverable by the auditors, suggesting the need for some impairments in the accounts hence a possible “disagreement' between company and auditors, resulting in the latter being unable to express an opinion on the financial statements. Management has been accessible when we sought clarification, but understandably tight-lipped on the issue given its sensitivities. The postulation is merely an expression of opinion made on face value based on its unaudited financial statements. Or it could be much ado about nothing, of which the company's share price could rebound as its fundamentals remain relatively intact.

Source: PublicInvest Research - 12 May 2015



Bad debts not accounted for... r°Moi and PublicInvest Research in agreement


Or it could be much ado about nothing,.... much ado about nothing would take 7 weeks???



Posted by r°Moi > May 12, 2015 11:20 AM | Report Abuse X

r°Moi is posting for sharing....... nothing else.... don't take it wrongly please

Posted by ks55 > 2015-05-12 11:29 | Report Abuse

If it is just a simple problem of receivables, special audit team need 6 weeks to do the job?
How many members are in this special audit team?

Having reasons to believe:-
1. Multi-layering similar to money laundering is involved.
2. Account has to trace back for last few FYE to check on dubious revenue/ profit/ inventories.
3. Account could involve many "trading partners" in different countries -- a typical money laundering operation.

With all the uncertainty. Public Invest Research still maintain buy with TP 1.12
###The trading of Malaysia Steel Works (Masteel)'s shares will be suspended effective today until further notice, triggered primarily by its delay in the audit completion of its FY14 financial statements and the release of audited financial report for FY14. Pending the outcome of the audit results, we maintain our call and target price.###

Really a research house with no integrity/code of ethic. Should THP please look at you IB???????

Posted by TengkuFaisal > 2015-05-12 11:29 | Report Abuse

ask any good financial controller, and with any "rule abiding" auditors who is friendly enough and business minded enough.

any profit can be reported, for multiple years.

i know because my background from auditing.

Posted by ks55 > 2015-05-12 11:41 | Report Abuse

Creative accounting ma....

Posted by TengkuFaisal > 2015-05-12 11:42 | Report Abuse

my master degree thesis was on Creative accounting.

Posted by ks55 > 2015-05-12 12:05 | Report Abuse

Are you having practical experience in forensic auditing?
Creative accounting just bending the laws, money laundering is breaking the law.
Many advisors/consultants to IPO practice creative accounting to the highest order.
So you will see company after listing will have deteriorating performance.