PwC finds more irregularities in Hin Leong's accounts

Assets overstated by $4.1b for 2019 financial year to conceal significant losses, says PwC

Hin Leong's Universal Terminal, which boasts a storage capacity of 2.33 million cubic m. PwC has found that the overstatement of Hin Leong's assets went back at least three years. PHOTO: HIN LEONG
Hin Leong's Universal Terminal, which boasts a storage capacity of 2.33 million cubic m. PwC has found that the overstatement of Hin Leong's assets went back at least three years. PHOTO: HIN LEONG

More irregularities have been uncovered in beleaguered Hin Leong Trading's affairs by its judicial managers, who are now investigating why "substantial misstatements" in the oil trader's audited financial statements were allegedly not detected by its external auditors Deloitte & Touche.

Judicial managers PricewaterhouseCoopers (PwC) Advisory Services, in their second report to the High Court filed on Nov 6, found that Hin Leong's assets were overstated by US$3.07 billion (S$4.1 billion) for its 2019 financial year, comprising US$2.27 billion in fake accounts receivables (up from US$2.23 billion) and US$800 million in inventory shortfalls.

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A version of this article appeared in the print edition of The Straits Times on December 05, 2020, with the headline 'PwC finds more irregularities in Hin Leong's accounts'. Subscribe