Transmile group bhd scandal

Transmile group was disclosed that its 2006 pre-tax profit and account receivables were not audited due to lack of some documents support. The group immediately announced a special audit of the accounts. Affected by this news, Jinpeng group’s stock plummeted, so that over the past two years, the stock returns come to naught, the Group's evaporated market value of RM1.2 billion (about 354 million US dollars).

Group pre-tax profit of RM208 million, annual income increased by 80%, trade receivables increased by double. After 3 months, Deloitte & Touche (audit firm) have informed that already confirmed lack of any information and documents unable proved and can be support related trade receivable.

Caused by JinPeng group applied postpone to submit annual report, but Bursa Malaysia Berhad have rejected the application was late. This issues serious to affect a big company’s reputation.

Although JinPeng group have try every ways to solve this issue, but this scandal can’t cover anymore and make people wondering Malaysia’s credibility of financial report, auditor and the role of the company's management.

This case has not yet confirmed the reason error of financial report. Is the company’s accounting system level too low, or the company executives conceal some facts.