MMT found Tianhe prospectus overstated revenue by over RMB6.7 billion; CEO disqualified for 4 years
Tianhe Chemicals Group Limited · Listed chemicals manufacturer
The case in brief
Visible before detection
Checks that could have surfaced it, on hindsight
Bank credits vs books
Bank credits would fall far short of the revenue in the track record.
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.
Counterparty tax/GST
Customer tax records would not support the reported sales.
Can mislead when: Needs taxpayer consent or GSP access. A registered, filing shell still passes this check, which is why C3 and C4 run beside it.
Counterparty existence
Customer checks would not confirm the volume of reported sales.
Can mislead when: Real companies can be used as pass-throughs. Existence does not prove a real trade, so C6 and C7 still apply.
Third-party confirmation
Direct customer confirmation would not match reported revenue.
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 fall far short of the revenue in the track record.
- C2 Customer tax records would not support the reported sales.
- C4 Customer checks would not confirm the volume of reported sales.
Valuation context
Offered in India- C4 Customer checks would not confirm the volume of reported sales.
Proceeds tracer
Offered in India- C1 Bank credits would fall far short of the revenue in the track record.
- C2 Customer tax records would not support the reported sales.
- C4 Customer checks would not confirm the volume of reported sales.
Model check
Offered in India- C1 Bank credits would fall far short of the revenue in the track record.
- C2 Customer tax records would not support the reported sales.
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.