Eratat Lifestyle

[ghchua]

No money to even conduct special audit. So sad.....

[valuebuddies]

Frankly speaking, I think it could be the start of chain effect from the China slowdown and soften in mainland property prices. Someone used to tell me about the S-chips failures, most of them are due to cash manipulation by the founders/controlling directors and unable to return the cash to the company when crisis hits. For Eratat, I would not be surprise that the company intentionally avoid the special audit as not to reveal anything in relation to manipulation of cash by someone behind.

Sorry to those who vested, me too had similar experience before (with Jurong Tech, not even an s-chip) but let's take it as a good lesson.

[Behappyalways]

In many instances, the Singapore CFO of S-chips does not really have a control/knowledge of the company finances. The S-chip boss will just transfer a 'working sum' so that their Singapore branch can operate. So the CFO can tell you and convince you that the money is safe...bah bah bah but look at Eratat. No money for special audit. No money to pay salary.....

http://www.eratatgroup.com/v2/files/rele..._final.pdf

http://nextinsight.net/index.php/story-a...s-briefing

SIAS Research has changed to Voyage Research

The update on Eratat is merely:
Eratat Lifestyle Limited has suspended the trading of its shares pending further developments. Due to the circumstances, we suspend coverage until the company is able to provide us updates and insights on the situation.


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(A) UPDATE ON GROUP'S FINANCIAL POSITION AND OPERATION; (B) FILING REPORTS WITH POLICE AND REGULATORY AUTHORITIES IN CHINA AND SINGAPORE; © RESIGNATION OF INTERIM CEO AND CFO; (D) OUTLOOK
http://infopub.sgx.com/FileOpen/Eratat-U...eID=299611


Cessation of Interim CEO and Chief Financial Officer
http://infopub.sgx.com/Apps?A=COW_CorpAn...RWI3VDITUK

[Behappyalways]

STATUTORY DEMAND AGAINST THE COMPANY FROM BONDHOLDER
http://infopub.sgx.com/FileOpen/Eratat-A...eID=300096

[sykn]

Good! At least there is someone who takes an effort to bring Eratat to task for its CEO's misdemeanour, even if we retail investors get nothing back. At least justice is served. Otherwise, if the white collar crime units in both countries are not going to do something about it, what's stopping him from taking hold of all the assets of the company (which belong to shareholders over here in Singapore) to run the business as a private limited called "Erata" (mistake to invest into it)?

[GPD]

I really wonder what are the IDs doing all this while given that they are/were the Audit committee members. Collecting director's fee while having no idea what is happening at all?

[specuvestor]

Good! At least there is someone who takes an effort to bring Eratat to task for its CEO's misdemeanour, even if we retail investors get nothing back. At least justice is served. Otherwise, if the white collar crime units in both countries are not going to do something about it, what's stopping him from taking hold of all the assets of the company (which belong to shareholders over here in Singapore) to run the business as a private limited called "Erata" (mistake to invest into it)?

sorry what justice except the company will be liquidated and deregistered? Will the directors be implicated?

[Harvest Time]

Many s chips claim to have a lot of cash. But eventually cash also disappear.
The only proof to show to us that the companies are sound is to consistent dividend declare by companies.

[CityFarmer]

Many s chips claim to have a lot of cash. But eventually cash also disappear.
The only proof to show to us that the companies are sound is to consistent dividend declare by companies.

I seldom post on S-Chip topic, since I am probably the odd ones, which might trigger a flaming unnecessary.

But I would like to share my view on "proof". Yes, dividend payout is hard cash. It is definitely a good "proof".

Other are, IMO, the loan and interest charged by local bank. Nobody know the company better than local bank, and banks are risk-averse.

One more is international customers. My guess is international customers are less willing to "co-operate" to cook the sale figure and margin.

To share view, but not necessary right

(never vested)

[specuvestor]

Other are, IMO, the loan and interest charged by local bank. Nobody know the company better than local bank, and banks are risk-averse.

Not really true for chinese banks

As you know I am not really averse to S-chips but must be doubly cautious to find the 10% gems.