China Minzhong Food Corporation

[mrEngineer]

I did not go through the report in detail except the executive summary but I assume that the checks on the top 3 customers are basically reports that they dig out of govt tax reporting websites for eg ACRA. I am just thinking is it possible that the actual customers company names are wrong as it is common in China that names are not fully aligned. Another possibility is we know that in China there are always 3 books (one for tax, one for investors and one for business owner). If figures are based on the wrong reports, it will mean very differently. Lastly, no doubt the auditor is not one of the big four, but I find it hard to believe that during their audit work they are not able to uncover something fishy. Auditors due to limited review time will most probably review the top material customers in details and there will be evidence trail like receipts, invoices, bank deposits, reconciliation reports which all has to be faked by CMZ. This sounds like a massive effort to committ fraud which regardless to say e basic due diligence from GIC and Salim would at least be visiting major customers.. My 2 cents and not vested