Do you ever wonder how REAL are the numbers shown in the Annual Report really?
SINGAPORE - The former chief executive of a ship equipment supplier was sentenced to 32 months in jail and fined $10,000 on Friday for inflating its accounts and cheating a bank of more than $2 million in loans.
Chew Soo Chun recorded fictitious transactions in Chew Yak Mong-Synerpac's books, overstating its sales revenue and gross profits for the financial periods between late 2005 and late 2006 by as much as 65 per cent. The 45-year-old also used fake documents to secure some $2.6 million in loans from OCBC bank.
But the offences were uncovered by accountants after the firm, which was facing money problems, handed over management of its assets in 2007.
Bogus sales invoices were generated to create the impression of high sales turnover, so the firm could boost investor confidence and OCBC would continue to lend it money.