MMT found China Forestry prospectus and 2009 results false; turnover overstated by 91.56% and 99.99%
China Forestry Holdings Company Limited · Listed forestry plantation operator
The case in brief
Visible before detection
Checks that could have surfaced it, on hindsight
Counterparty existence
Visits and confirmations would not find the purported customers.
Can mislead when: Real companies can be used as pass-throughs. Existence does not prove a real trade, so C6 and C7 still apply.
Document authenticity / direct pull
Forestry certificates and logging permits checked at source would not match.
Can mislead when: The company can refuse consent, and a refusal is itself a flag. Some banks and co-op banks are not on AA yet.
Bank credits vs books
Bank credits would not match reported sales and bank balances.
Can mislead when: AA only sees the accounts the company links, so an undisclosed account stays invisible. Cash-heavy businesses and timing differences create false flags.
Third-party confirmation
Direct bank confirmation would contradict the reported balances.
Can mislead when: Counterparties can collude or ignore requests. A non-response is logged as a gap, never as a pass.
Where Kubr services would have helped
Financial diligence
Offered in India- C1 Bank credits would not match reported sales and bank balances.
- C4 Visits and confirmations would not find the purported customers.
- C5 Forestry certificates and logging permits checked at source would not match.
Valuation context
Offered in India- C4 Visits and confirmations would not find the purported customers.
Proceeds tracer
Offered in India- C1 Bank credits would not match reported sales and bank balances.
- C4 Visits and confirmations would not find the purported customers.
Verified Snapshot
Offered in India- C4 Visits and confirmations would not find the purported customers.
Mapped from the checks each service runs. A hindsight reading of public records, not a promise that the failure would have been found.
Same pattern
A summary of public documents. It reports what the sources say. It is not Kubr's finding and not a statement of guilt.