JAKARTA (TheInsiderStories) — Indonesian authorities are now stepping into the consumer business company PT Tiga Pilar Sejahtera Food Tbk (IDX: AISA) or TPS Food financial problem, as there are allegedly double accountancy and data differences over the company 2017’ financial report.
Now, Indonesia Stock Exchange (IDX) consulted with Financial Services Authority (FSA) and Indonesia Public Accountant Institute discussing TPS Food financial report chaotic audit. So far, there is no sanction imposed to allegedly trillions of Rupiah inflated funds found by PT Ernst and Young Indonesia.
Previously, Finance ministry’ Financial Professional Coaching Center (FPCC) has summoned TPS Food management, Ernst and Young, public accountant, and the accountant office that audited the 2017 financial report. According to the FPCC, there will be sanction for the public accountant and its office if there’s a proven violation.
The 2017 financial report was audited by Amir Abadi Jusuf, Aryanto, Mawar & Partners public accountant office. It affiliated with audit firm, tax firm, and world-reputable consultant RSM International.
The ompany management has stated ready to follow up the investigation report later after shareholders meeting in June. According to the TPS Food President Director Hengky Koetanto, the financial report investigation request came from shareholders, so it would need more suggestions from the stake owners.
According to company’ announcement, it has received Ernst and Young investigation report in March 25. While the investigation request came up in the Oct. 22, 2018’s shareholders meeting.
Ernst and Young found some differences between the internal data and financial records used by the auditors. It explains that there are allegedly Rp4 trillion (US$283.68 million) overstatement on the accounts of receivable, inventories, and fixed assets in TPS Group. Moreover, there are Rp662 billion sales and Rp329 billion EBITDA overstatement on the subsidiaries.
The audit also found Rp1.78 trillion funds flow through several schemes such as bank loan, time deposits withdrawal, funds transfer in the bank account, and financing of expenses of affiliated parties, from TPS Group to the former management.
In reaching these findings, Ernst and Young did data analytics procedure, eliminate some accounts in internal data, interview company’s new management and employees, analyze supporting transaction documents. But they couldn’t do some procedures like clarifying implicated parties, examining computer forensic data, analyzing transaction source documents, and observing directly, due to access limitation.
TPS Food is now also facing several debt repayment obligations. Company has three postponement requests over the debt repayment obligations through its subsidiaries. In March, they were asking for more delay due to this month on 8, 12, and 15 respectively. But it is unclear how the debt payment continues.
TPS Food used to be a well-performed company, as its stocks included in a top index LQ45. It then being kicked out from the index after security officers’ raid to its rice plant, accused using cheap rice to create premium product. The issue made company then divested its rice business line in December 2017 and the financial performance fell ever since.
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