Bangkok--12 Dec--SEC
The SEC today filed a criminal complaint with the Department of Special Investigation (DSI) against Somchit Bosereewong, CEO and Director of Singha Paratech PLC (SINGHA) for falsifying the company’s documents and accounts in violation of Section 312 of the Securities and Exchange Act B.E. 2535 (1992) (SEA).
The SEC’s finding indicated that Somchit proceeded or permitted another to falsify documents and make false entries of revenues from sales in SINGHA’s 2007 financial statements in a total amount of 543.3 million baht or 47.3 percent of the total of goods sold. This resulted in SINGHA’s 2007 financial statements having 63.7 million baht operating profit; instead of an operating loss.
There are grounds to believe that such false revenues were items on sales of the wood flooring products to nine local customers in 2007; most of which were new customers. The company subsequently recorded a high amount of 320.8 million baht doubtful debt expense in 2008 financial statements; mainly due to the sales to those local customers. In addition, the 2008 financial statements submitted to the SEC on February 28, 2009 showed a net operating loss of 944.7 million baht.
In this connection, Mr. Somchit is deemed as having untrustworthy characteristics of a publicly held company director and executive on the grounds that the SEC filed the criminal complaint against him for his alleged disclosure of false information in accordance with Clause 4(3) of the SEC Notification No. KorChor 8/2553 Re: Determination of Untrustworthy Characteristics of Company Directors and Executives dated April 23, 2010, which has caused the termination of Mr. Somchit’s directorship and executive position at SINGHA in accordance with Sections 89/4 and 89/6 of the Securities and Exchange Act B.E. 2535 (1992). Concurrently, the SEC is unable to maintain his name on the Executive Database.
In any case, the filing of a criminal complaint commences the criminal justice administration; whereby the court will judge the case accordingly.