Embattled Group Lease Plc (GL) has notified the Securities Exchange Commission (SEC) that it is still preparing to submit the requested special audit after appointing a Singaporean auditing firm to complete the task.
"The company had arranged for Mazars LLP, a professional audit firm in Singapore, to proceed with the special audit from early February 2018," chief executive Tatsuya Konoshita said in a filing with the Stock Exchange of Thailand (SET). "The company has submitted all related documents to Mazars, with the last submission of documents on April 19. The company is waiting for a conclusion of the special audit, but cannot say when that will be, as Mazars is an independent firm."
GL will conclude the special audit, outlining the effects on the firm's financial status and operating results, Mr Konoshita said.
GL's share price has fallen steeply amid the regulatory scandal. GL is a digital finance company specialising in hire purchase for Japanese motorcycle brands.
On Oct 16, the SEC filed a criminal complaint against former GL chief executive Mitsuji Konoshita with the Department of Special Investigation, alleging fraud, misappropriation of company assets and falsification of accounting records by executing concealed transactions through several associated firms abroad to exaggerate operating results.
The regulator pointed to evidence that Group Lease Holding Co Ltd (GLH), a subsidiary of GL based in Singapore, had issued loans to four registered firms in Cyprus and another in Singapore worth US$54 million (1.8 billion baht), with Mr Konoshita serving as the controller and ultimate benefactor.
After receiving the loans from GLH, the five debtor companies transferred the money within lender group firms to repay the interest and principal to GLH in instalments. The interest payments were recorded as income in GLH's financial statements, constituting fabrication of GL's accounting records and exaggeration of its operating results, said the SEC.
GL shares yesterday closed on the SET at 5.30 baht, down 20 satang, in trade worth 2.6 million baht.
