Touchwood Case Review

seyon

seyon

Assistant Vice President - Equity Analytics

Posts : 783
Join date : 2011-02-01

Unofficial information that the expected Touchwood case against Sri Lanka Accounting and Auditing Standards Monitoring Board(SLAASMB) next hearing will be on 26th May 2011. Yes everyone looking the favorable outcome. Today, there are rumors that outcome will be favorable to the company and some brokers recommend to buy at current price. I could see some collection (about 820,000 shares) was made @ 23.60 levels.

I just did some research on the Touchwood Case. It looks like decision will be favorable to company. (This is not a promotion, just merely to getting your views. To be honest I do not have TWOD shares at the moment.)

We all know about the case related to the valuation of biological assets. I extracted some facts from SLAASMB website of case information to start from beginning.

The Sri Lanka Accounting and Auditing Standards Monitoring Board has determined that the estimates of fair value of biological assets used by Touchwood Investments Limited in its financial statements for the years ended 31 March 2005 and 31 March 2006 are clearly unreliable. The Company has also not been able to provide the Board with any other estimates which are reliable. Further, the method of valuation used for the year ended 31 March 2005 was not in accordance with International Accounting Standard, IAS 41 Agriculture, which the company has purportedly adopted.

As the company has purportedly adopted International Accounting Standard, IAS 41 Agriculture, the Board has concluded that the biological assets should have been valued at a value which approximates cost in accordance with paragraph 24 (b) of IAS 41 or at cost less accumulated impairment in accordance with paragraph 30 of IAS 41. Based on such valuation the company would not show a net profit for the relevant financial periods.

As the impact on the financial statements is substantial the Board has decided to refer the non-compliance to the Attorney General. The Board has also decided to investigate the compliance with auditing standards by the auditors in relation to the audit of the financial statements of the Company.

Based on the above information I can see in the absence of Sri Lanka Accounting Standards, company uses International Accounting Standards 41, Agriculture for the valuation of biological assets. But SLAASMB argument is that estimates of fair value of the biological assets in not accordance with IAS 41 and the financial statements are unreliable.

Further I have received BASL News Letter (Bar Association) of December 2010, there talked about some legal judgment (I attached the newsletter in our research forum http://research.srilankaequity.com/t96-touchwood-case-basl-bar-association-news-letter-judgement-views , refer page 4 for the Touchwood case). There they briefed about the case and given their views. Based on that, Board had not statutory power to challenge the valuation of the Petitioner on non compliance with IAS 41.

Further company received the Certificate of Compliance by the Institute of Chartered Accountants of Sri Lanka for the Annual Report Awards 2010. This certificates covers the CSR, Financial, Presentation and Compliance. Therefore, this reveals that the company practice in valuing biological assets in accordance with IAS 41 as the certificated awarded by ICASL which is the statutory for setting the Accounting Standards

Followings extract from Touchwood website

Certificate Of Compliance

January 24th 2011

We are proud to announce that our Sri Lankan office, Touchwood Investments PLC has been awarded the “CERTIFICATE OF COMPLIANCE” by the Institute of Chartered Accountants of Sri Lanka for the Annual Report Awards 2010 - at the ceremony held on 7th December 2010.

This award is granted by the Inst. of Chartered Accountants of Sri Lanka every year. They evaluate and grant awards in key areas such as - CSR, Financials, presentation, compliance, etc.

This certificate emphasizes that all requirements are being met in order for us to achieve our goals and serve our investors with industry leading standards.

For the year to come Touchwood Investments PLC has its goals set on the CSR awards to be handed out in the 2011 ceremony.

Thank you to all our accounting and administration staff who made the award possible.

http://www.touchwood.com/news/certificate-compliance

So Guys, Based on the above information and facts, to me the decision would be favorable to company. How do you all look into that..

Pls Share ur thoughts and views

Mon Nov 19, 2012 1:07 am by stumpy · Mon Nov 19, 2012 1:07 am by stumpy

Reminds me the great words of a wise man called Innam Very Happy

Hat's off brother! cheers

Mon Nov 19, 2012 9:08 am by smallville · Mon Nov 19, 2012 9:08 am by smallville

hariesha wrote:It's very funny. A seem to be Thai national has created an account in Sri Lanka Equity forum to publish his grievances.

I also have some concerns about TWOD and regarding recent unexplained resignations of the majority of the directors, which I publish in this forum in certain threads.

But this topic has published clearly with some malice intentions.

It's really sad administrators are allowing this post to continue in this public forum!

There have been some requests to remove posts due to TW has promised to pay the individuals. So we're moving this thread to prison till the valid sources are presented.

Mon Nov 19, 2012 10:30 am by Lord Toad · Mon Nov 19, 2012 10:30 am by Lord Toad

I am also a Touchwood investor.

The closure on the BKKK office in haste is a fact.

There are other rumours innuendos et al floating about.

Smoke and fire spring to mind - I will post more when I have real facts.
I was paid last year but only after real fight to get my money

Mon Nov 19, 2012 1:22 pm by Kay2 · Mon Nov 19, 2012 1:22 pm by Kay2

Hi,

I think all of you should visit the following blog for details on Touchwood Agarwood investment, this helped me understand whats going on. I know of many people who have got their returns and some who had delays but still received payments at the end of it. Lets not get stuck with the negatives only there are positives to things you know.

The blog is : touchwoodinvestmentsplc.wordpress.com

Mon Nov 19, 2012 3:05 pm by zenobia · Mon Nov 19, 2012 3:05 pm by zenobia

a rumour is not a proof
a statement is not a fact

within the past couple of days i have seen two threads involving complaints about toucwood without a single piece of information to back the accusations made. the threads have started by forum members who have registered just before posting the thread.
to admins and moderators, kindly evaluate these postings and remove them if they were published to mislead those who read them.
thanks

Mon Nov 19, 2012 5:24 pm by Lord Toad · Mon Nov 19, 2012 5:24 pm by Lord Toad

zenobia wrote:a rumour is not a proof
a statement is not a fact

within the past couple of days i have seen two threads involving complaints about toucwood without a single piece of information to back the accusations made. the threads have started by forum members who have registered just before posting the thread.
to admins and moderators, kindly evaluate these postings and remove them if they were published to mislead those who read them.
thanks

You are right - you should wonder why suddenly there are a group of group of new members who are interested in touchwood!

I could supply proof of the problems and indeed in due course will do but at the moment I am hoping that the management of Touchwood get their act together and answer some fundamental questions. If you want proof pm me and I will provide it!

Mon Nov 19, 2012 5:27 pm by Slstock · Mon Nov 19, 2012 5:27 pm by Slstock

We have seen Melstacorp representative commenting and clarifyign here. Which is great.

I hope someone from TWOD also comes and clarifies these doubts/questions for the betterment of the company.

Wed Nov 21, 2012 11:45 am by Kay2 · Wed Nov 21, 2012 11:45 am by Kay2

dinga wrote:G'day

I am an investor, via Touchwood Asia, in bamboo and agarwood trees in Thailand.

Seems the company has closed its office in Bangkok without any notification to investors. I should by now have been paid a modest amount for the 2012 bamboo harvest but am still waiting.

Emails and telephone enquiries to the Colombo HQ remain unanswered. I am told the separate company that maintains the plantations is still operating but frankly my pessimistic side wonders if this will continue given the very bad signals and silence from Touchwood Asia.

Am very concerned about my investments. Appreciate any insights about what is, or may be, happening with Touchwood?

Hi,

You should contact Touchwood local office on 0094117444888, As far i know Touchwood Asia is still very much operational and i have verified this from the local office and also via my contacts in Thailand. I am sure there is a valid explanation to your concern and doubts, at this point the right thing to do is to contact the local office. Clearly posting comments is not helping. Get it off the horses mouth.

Thanks

Wed Nov 21, 2012 11:57 am by Lord Toad · Wed Nov 21, 2012 11:57 am by Lord Toad

[quote="Kay2"]

dinga wrote:G'day

Hi,

You should contact Touchwood local office on 0094117444888, As far i know Touchwood Asia is still very much operational and i have verified this from the local office and also via my contacts in Thailand. I am sure there is a valid explanation to your concern and doubts, at this point the right thing to do is to contact the local office. Clearly posting comments is not helping. Get it off the horses mouth.

Thanks

I am sure you are right. But it would help if Touchwood management actually clarified what is happening and how harvest returns will now be paid.

It would help if they answered their emails. I have sent 3 in the last month without one response.

The only reason people are posting here is because they are getting no response and the rumour mill (in Bangkok) is rife with bad news - of course rumours are just that but it is the job of Touchwood management to counter them.

Wed Nov 21, 2012 12:46 pm by chas · Wed Nov 21, 2012 12:46 pm by chas

[quote="Lord Toad"]

Kay2 wrote:

dinga wrote:G'day

Hi,

You should contact Touchwood local office on 0094117444888, As far i know Touchwood Asia is still very much operational and i have verified this from the local office and also via my contacts in Thailand. I am sure there is a valid explanation to your concern and doubts, at this point the right thing to do is to contact the local office. Clearly posting comments is not helping. Get it off the horses mouth.

Thanks

I am sure you are right. But it would help if Touchwood management actually clarified what is happening and how harvest returns will now be paid.

It would help if they answered their emails. I have sent 3 in the last month without one response.

The only reason people are posting here is because they are getting no response and the rumour mill (in Bangkok) is rife with bad news - of course rumours are just that but it is the job of Touchwood management to counter them.

I am an investor with Touchwood and can confirm that the office in Bangkok is closed as is the Hong Kong office. There are many clients who have not been paid their returns. There are a number of clients who are now considering litigation as the only solution. This is of course very sad, however, Touchwood are refusing to acknowledge emails or give its clients answers.

I have not been paid my harvest returns for 2011 and have not been able to get confirmation of when or even if I will be paid for 2011 and 2012's payment is now due.

Why have so many directors resigned recently? at least two directors recently resigned after being on the board for only a few months.
These are not rumours and its important that the facts are brought to the publics attention.

Wed Nov 21, 2012 1:03 pm by traderathome · Wed Nov 21, 2012 1:03 pm by traderathome

why TW reps are not here to explain these allegations.... Rolling Eyes

Wed Nov 21, 2012 1:27 pm by Jiggysaurus · Wed Nov 21, 2012 1:27 pm by Jiggysaurus

traderathome wrote:why TW reps are not here to explain these allegations....

Baloney's gardener has still not been appointed as the Head of PR yet.

Wife is the CEO
Cook is probably the CFO
Driver is probably the COO
Still Gardener not appointed as PR head

Qualified people like Rienzie and even partly qualified people like LOLC take a look at this company and runaway, Baloney appoints his wife to run a publicly listed company. Any surprise that there are so many negative accusations about this company.

Wed Nov 21, 2012 1:54 pm by traderathome · Wed Nov 21, 2012 1:54 pm by traderathome

Jiggysaurus wrote:

traderathome wrote:why TW reps are not here to explain these allegations....

Baloney's gardener has still not been appointed as the Head of PR yet.

Wife is the CEO
Cook is probably the CFO
Driver is probably the COO
Still Gardener not appointed as PR head

Qualified people like Rienzie and even partly qualified people like LOLC take a look at this company and runaway, Baloney appoints his wife to run a publicly listed company. Any surprise that there are so many negative accusations about this company.

Wed Nov 21, 2012 7:20 pm by chas · Wed Nov 21, 2012 7:20 pm by chas

traderathome wrote:

Jiggysaurus wrote:

traderathome wrote:why TW reps are not here to explain these allegations....

Baloney's gardener has still not been appointed as the Head of PR yet.

Wife is the CEO
Cook is probably the CFO
Driver is probably the COO
Still Gardener not appointed as PR head

Qualified people like Rienzie and even partly qualified people like LOLC take a look at this company and runaway, Baloney appoints his wife to run a publicly listed company. Any surprise that there are so many negative accusations about this company.

It should be the SL stock exchange that investigates Touchwood to check why it is not fullfilling its obligations to investors. They should also check the latest 'offering' which appears to be a private debenture from one company secured against sandalwood of another.

By the way this isn't TW bashing, its concerned investors who want something done to get their investments back. This includes, agarwood, bamboo & no one has mentioned jatropha ...

Wed Nov 21, 2012 8:47 pm by chas · Wed Nov 21, 2012 8:47 pm by chas

i found this on nation.lk website beginning of November 2012

Resignations
.....Two directors of Touchwood Investments PLC M Simmons and M Scorer resigned from their positions last week.

Apparently they were only appointed to the board a few months earlier...does that not seem strange in the light of current revelations of non payment of investor returns, perhaps they found out something that they didn't like about TW?

Wed Nov 21, 2012 10:01 pm by smallville · Wed Nov 21, 2012 10:01 pm by smallville

Nobody has provided the much needed evidence to second their claims.. so this thread will be locked from now on..

We should not be wasting time scolding companies and their mgt if we cannot prove anything.. Its a waste of everyone's time..

I also see ppl are opening accounts just to join the campaign..

If any of u have proper evidence of not being paid the promised amts or any official statements received regarding this from TWOD, pls pm me or open a new thread..

Mind you, if any more threads are opened without evidence, all those will be deleted.

Thu Nov 29, 2012 9:31 am by smallville · Thu Nov 29, 2012 9:31 am by smallville

The thread has been reopened due to some documented evidence have been provided to admins regarding the payments from certain individuals. In those letter they've addressed their issues with TWOD management which we think the right thing to do.
We've however, not been provided with letters sent by TWOD regarding the same. Perhaps the company has never provided any letters too.

I would stress it out the thread has been re-opened to discuss the case but no mud slinging should occur at any case. TWOD is also a listed company and in this case might have been notorious and unreasonable but we have to encircle our points with valid backgrounds.

Any further discussions and points are welcome..

Thu Nov 29, 2012 10:06 am by Lord Toad · Thu Nov 29, 2012 10:06 am by Lord Toad

Thanks you for reopening the thread - there are some clear issues which investor should know about.

I will copy future mails to toucwhood to smallville

I will also email touchwood and ask them to respond to the points here,

Thu Nov 29, 2012 10:53 am by Slstock · Thu Nov 29, 2012 10:53 am by Slstock

We re-opened the thread as Chas provided some proof. But please do not post any legal matters/documents or any irrational mud slings on the forum.

AS Lord Toad said you can ask TWOD rep to answer any concern on the forum if they are willing.

As there seems to be several concerns with members these days I hope TWOD rep comes here and claifies these. Keeping quite will only add more fire if true/false rumours start spreading.

Lord Toad wrote:Thanks you for reopening the thread - there are some clear issues which investor should know about.

I will copy future mails to toucwhood to smallville

I will also email touchwood and ask them to respond to the points here,

Thu Nov 29, 2012 7:09 pm by trendfollower · Thu Nov 29, 2012 7:09 pm by trendfollower

I am an investor on Touchwood agarwood in Hong Kong.

Can Chas or other Touchwood clients in Thailand update the situation at your side?

Please PM me and leave your emails for keeping in contact (as I can't PM you cos' of my low points).
Thanks.

Thu Nov 29, 2012 7:44 pm by Whitebull · Thu Nov 29, 2012 7:44 pm by Whitebull

I do not know whether these accusations are true or false but constant silence from Touchwood can worry a genuine invester.
On the otherhand this reminds me the value of looking in to fundamentals and progress of a company before investing on it. Most of the so called traders tend to ignore these things but oneday they might burn their hands without hope of any recovery.

Fri Nov 30, 2012 10:09 am by smallville · Fri Nov 30, 2012 10:09 am by smallville

We dont oppose using pms so when sensible information is shared, dont put those in threads.. All of u can use pm facility to talk to each other, so use it..

Lay down here the points being discussed with TWOD or among other members without any identities.. This is for the protection of members hence all of you would cope..

Fri Nov 30, 2012 9:56 pm by kuk83 · Fri Nov 30, 2012 9:56 pm by kuk83

http://www.cse.lk/cmt/upload_report_file/631_1354270667.pdf

Fri Nov 30, 2012 10:16 pm by abeyesekera · Fri Nov 30, 2012 10:16 pm by abeyesekera

.

traderathome wrote:we are seeing some strange emails lately...guys where were you......all this time...just joining to post ....show us the proof .........its not right just to complain w/o valid proof that you have invested and your calls were unanswered.

to keep it short and simple....please show...

firstly any documents indicating you are a genuine investor of the company...
secondly prove to the forum members that your payment is now due...
thirdly your reminders such as emails sent to the concerned company....
finally snapshot of the that company office that is closed.....

i am not a spokesperson for the company...but to be fair you need to back up with some concrete proof to see for all of us.....to know your concerns are real......

no offense.......

Mon Dec 03, 2012 3:12 pm by Lord Toad · Mon Dec 03, 2012 3:12 pm by Lord Toad

I wanted to send PMs to all the frustrated investors but I have not enough posts. I have asked for that to be fixed.
However I am in contact with some large scale investors and we believe there is little option but to take positive action (legal).
If you are an investor and would like to be kept informed of what is happening please sign up on this link http://ymlp.com/xgjqusbmgmgj

Mon Dec 03, 2012 3:30 pm by Fresher · Mon Dec 03, 2012 3:30 pm by Fresher

Lord Toad wrote:I wanted to send PMs to all the frustrated investors but I have not enough posts. I have asked for that to be fixed.
However I am in contact with some large scale investors and we believe there is little option but to take positive action (legal).
If you are an investor and would like to be kept informed of what is happening please sign up on this link http://ymlp.com/xgjqusbmgmgj

you need at least 10 posts in the forum to be able to send PMs

Mon Dec 03, 2012 9:26 pm by Lord Toad · Mon Dec 03, 2012 9:26 pm by Lord Toad

npp wrote:

Lord Toad wrote:I wanted to send PMs to all the frustrated investors but I have not enough posts. I have asked for that to be fixed.
However I am in contact with some large scale investors and we believe there is little option but to take positive action (legal).
If you are an investor and would like to be kept informed of what is happening please sign up on this link http://ymlp.com/xgjqusbmgmgj

you need at least 10 posts in the forum to be able to send PMs

Thanks - it looks like I will have to be more verbose

Tue Dec 04, 2012 8:35 am by Lord Toad · Tue Dec 04, 2012 8:35 am by Lord Toad

Just being as threatened

Tue Dec 04, 2012 8:39 am by Lord Toad · Tue Dec 04, 2012 8:39 am by Lord Toad

If you are an investor and would like to be kept informed of what is happening please sign up on this link [url= http://ymlp.com/xgjqusbmgmgj[url][/url]] http://ymlp.com/xgjqusbmgmgj[url][/url][/url]