Business

Thursday May 31, 2007

Overstatement shocks analysts



PETALING JAYA: Most analysts were shocked to find the overstatement of Transmile Group Bhd’s revenue to be over RM300mil for the financial year ended Dec 31, 2006.

“I’m speechless. I didn’t expect the figure to be so huge,” said an analyst who covered the stock.

He said the overstatement was a serious accounting issue, which would raise doubts among investors.

“Confidence in the company may drop as we cannot rely on them for accurate information,” he added.

A head of research, however, was more optimistic. “The paper trail could not be ascertained hence the huge amount in question. It may not be that much in reality,” he said.

Furthermore, based on its balance sheet, the company’s cashflow remains healthy. “We learnt that the cashflow amount is not in question,” he added.

 
TRANMIL :  [Stock Watch]  [News]

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