Stark Corporation Public Company Limited or STARK notified the Stock Exchange of Thailand in time on June 16, 2023 after a delayed report found a net loss of 6,612.13 million baht in 2022 and corrected The 2011 financial statement has changed to a loss of 5,965 million baht, from the original that was reported to be a profit of 2.8 billion baht.
Stark Corporation Public Company Limited (STARK) notified the 2022 financial statement to the SET as scheduled yesterday (June 16), a loss of more than 6.6 billion baht, a loss per share of 0.5393 baht, and changed the 2021 budget to Loss of 5,965 million baht, loss per share of 0.501 baht, previously reported a profit of 2.8 billion baht after the auditor found several irregularities.
While the auditor has audited and certified the financial statements without expressing an opinion. As a result of considering the situation that affects the uncertainty on the ability to continue operations (Going Concern) of the Company Group
As of December 31, 2022, the Group’s total current liabilities were 6,628 million baht higher than total current assets and had a negative equity of 4,404 million baht, most of which were trade payables. short term loan Long-term borrowings and debentures due within 1 year, some of which are short-term liabilities arising from the classification of long-term borrowings as short-term borrowings. Because some financial ratios are not in accordance with the conditions specified in the long-term loan agreement and debenture prospectus.
In addition, in May ’23, the bondholders’ meeting No. STARK239A and STARK249A, which has a total outstanding principal of 944 million baht, resolved to approve the call for all principal and interest debt under the bonds. This greatly affects the use of working capital and additional sources of funding from financial institutions. The group of companies is in the process of negotiating with financial institution creditors to resolve the debt problem of the group of companies. cause material uncertainty This may cast doubt on the Group’s ability to continue as a going concern.
The Company Group has changed the management and the Board of Directors of the Company Group. In April 2023, the new management and Board of Directors fully cooperated in the audit and special audit to resolve the delay in submitting the financial statements. and try to comply with the schedule for submitting financial statements for the year 2022
In the preparation of the 2022 financial statements, the new management of the company detected several errors. in the 2021 financial statements dated 23 February 2022, which involved several accounts in the financial statements and amounted to material amounts. Including sales revenue and cost of sales Revenue from rendering of services and cost of rendering of services inventories Accounts receivable and allowance for credit losses and related expenses The aforementioned items are unusual items. And caused the management of the company to adjust the comparative figures for the year 2021 for the consolidated financial statements for the year 2022 to be correct according to the information currently available.
The company also reports the results of the special audit in the first phase that PricewaterhouseCoopers. ABAS Co., Ltd. Conduct a comprehensive examination of abnormal transactions related to accounts receivable receiving different A/R confirmations. Advance payments for goods that are unusually high amounts Large and valuable invoices at the end of the inventory period are lost. and inaccurate aging analysis report
(a) Abnormal sales The special examiner found 202 unusual sales transactions, representing a sales value of 8,063 million baht and 3,593 million baht in 2012 and 2011, respectively, detected from verification of the correct balance with customers. payment verification Unusual payment behavior Forgery of the name of the payer and payment from the account of a former employee of the company on behalf of the client.
(b) Abnormal inventories It was found that at the end of the period, there were stock items consisting of work in progress (WIP), raw materials (RM) and finished goods (FG) with negative balances in the information system (ERP). of the company 3,140 items
(c) The debtor aging report was prepared incorrectly. When making a debtor aging analysis report from the data in the SAP system compared to the debtor aging analysis report that the (former) management sent to the auditor, it was found that the outstanding days were calculated differently. As a result, the age of the debtor in all periods (aging range) in the original report is lower or the accrual period is less than it actually is. And upon retrospective review, it was found that such anomalies had occurred in every quarter of the past 65 years.
(d) Irregular advance payments Advance payments for goods as of December 31, 2022, it was found that the Company had paid for goods in advance by money transfer through Kasikorn Bank account. Overseas raw material sellers (key RM vendor/supplier) in Thai baht amounted to 7,976 million baht, which is a very unusual amount because in the past 5 years, the company has never paid for products in advance. much like this before
STARK also informed that it requested assistance from the SEC Office to extend the special audit period for another 30 days after it could not be completed by June 16, 2023.
before
Mr. Thawatchai Tipayasophon, Deputy Secretary-General, Acting Secretary-General The Securities and Exchange Commission (SEC) revealed that the problem of STARK is in the process of reviewing the SEC, not complacent. Because trying to expedite STARK to clarify various information In addition, the SEC is a law enforcement agency. Therefore, when taking action in the law enforcement process, we may not be able to clarify now. which will extend the period of special audit (special audit) must consider the reasons for making a decision whether it is appropriate or not
Mr. Jatupat Tangkaravakoon, Chief Executive Officer of TOA Paint (Thailand) Public Company Limited (TOA), said that the case of STARK is a personal investment of Mr. Vonnarat Tangkaravakoon, his brother, who, despite being one in TOA’s major shareholder, but it has only 9% stake, not considered significant to the company The Tangkaravakhun group who is in charge of TOA may not be able to assist in STARK’s case because the family is not involved. And Mr. Vonnarat never came to talk about this matter. Must wait to follow the disclosure of STARK’s financial statements like all investors. .-Thai News Agency
Source: Thai News Agency