Dick Smith IPO - DSE

[Hoop]

Creative accounting to the point of absolute fraud...How on earth was this sort of stuff allowed to happen..where were the controls?..How was a listed company allowed to get away with management malpractice for so long and to the point of bankruptcy....Where is the shareholders protection.

A reason why DSE was overstocked with crap....helps create an earnings mirage..eh
"In periods of low profitability, some rebates provided a short-term incentive for management to prefer a certain supplier and product, because the rebate increased profit in the month of purchase, rather than when the product was sold (as ordinarily would be the case).

This practice (not admitted to) made my blood boil..if true I hope the bastards get locked up.
In a bizarre exchange, Giles referred to a document produced by Cooke for the receivers, which the former company secretary described as "a calculation to look at the cash conversion".

"There is a sentence that runs across the bottom," Giles said.
"It says, 'Sell private label product bought at 98 cents, back to the supplier at 78 cents, and rebuy it at 78 cents or even 77 cents, with a 'risk' related adjustment ... reflecting a commercial arms-length trade would get it into stock at the new rates, generate cash and make a profit.'"

The quotes came from NZ Herald Article 6/9/16

Makes one wonder how many other listed companies out there are doing these types of hidden practices.... I guess us investors and suppliers will only find out when all the skeletons fall out of the cupboard at the next economic low tide.

[winner69]

Creative accounting to the point of absolute fraud...How on earth was this sort of stuff allowed to happen..where were the controls?..How was a listed company allowed to get away with management malpractice for so long and to the point of bankruptcy....Where is the shareholders protection.

A reason why DSE was overstocked with crap....helps create an earnings mirage..eh
"In periods of low profitability, some rebates provided a short-term incentive for management to prefer a certain supplier and product, because the rebate increased profit in the month of purchase, rather than when the product was sold (as ordinarily would be the case).

This practice (not admitted to) made my blood boil..if true I hope the bastards get locked up.
In a bizarre exchange, Giles referred to a document produced by Cooke for the receivers, which the former company secretary described as "a calculation to look at the cash conversion".

"There is a sentence that runs across the bottom," Giles said.
"It says, 'Sell private label product bought at 98 cents, back to the supplier at 78 cents, and rebuy it at 78 cents or even 77 cents, with a 'risk' related adjustment ... reflecting a commercial arms-length trade would get it into stock at the new rates, generate cash and make a profit.'"

The quotes came from NZ Herald Article 6/9/16

Makes one wonder how many other listed companies out there are doing these types of hidden practices.... I guess us investors and suppliers will only find out when all the skeletons fall out of the cupboard at the next economic low tide.

A division of Wesfarmers got caught doing the same thing with rebates last year!!!

[Jay]

I'm liked the bit about having 12 years stock of private label AAA or AA batteries - based on the last 4 weeks sales volume - must have got them at a good price or the exchange rate was very favourable :-)

[troyvdh]

Great to hear recievers going after Directors in Oz.Just thinking on how many occasions have directors in NZ have had to pay back divs etc.

[Ace]

Class action against dick smith for those who may be interested.

http://dshclassaction.com.au/