| The
following entries were then recorded in PLC A’s
balance sheet:
| 4 |
PLC
A , Balance Sheet as at 31 December 200x |
| |
Debit |
Other
Creditors
(For the professional fees owed to Y Sdn Bhd) |
RM30
million |
| Credit
|
Other
Debtors
(For the amount owed for the purchase consideration
of K Sdn Bhd) |
RM30
million |
In
the end
In
this scheme, PLC A had never acquired any profitable company
or investment. But RM30 million was siphoned off through
various strategies concocted by its unscrupulous director,
Mr A.
What should investors watch
out for?
As investors,
when you scrutinise the financial statements of a PLC,
pay close attention to items such as “acquisition
of a company”, especially if the acquisition has
been disposed off immediately, usually within one financial
year.
At the
same time, as investors you have every right to seek
information and clarification. This would prevent the
company, which you have invested in with your hard-earned
money, from partaking in any questionable activities,
which would be detrimental to your investments. Remember
to exercise your rights… now!
|
