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  "documentTitle": "Duoyuan Global Water Inc. (DGW)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "presentationDate": "2011-04-04 00:00:00",
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  "notes": "The slide uses a narrative structure to expose fraudulent activities, specifically focusing on the 'Property Swap that Wasn't'.",
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      "kind": "callout",
      "text": "These combined misclassifications boosted operating cash flow by RMB 88.3 million (US$12.9million), or 57.6%.",
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      "text": "The auditor failed to detect that DGW is claiming to make rent payments to a landlord when DGW actually owns the building... The auditor failed to see that DGW's financial statements accounted for the purported land transfer in a way that improperly boosted 2008 operating cash flow... The auditor also failed to see that the loan Chairman Guo repaid to DGW in 2008 also improperly boosted 2008 operating cash flow... Our manufacturing experts believe that it is impossible for DGW to have zero work in process inventory...",
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      "text": "DGW claims that in 2008 it swapped its Beijing office building... In reality, Terminal was wound up by March 2008... DGW Beijing, which owned the office building that was purportedly swapped... never transferred ownership of the building to Terminal...",
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      "text": "DGW's SEC filings claim that the value of each property was approximately RMB 75 million... We believe that the values of both properties were nowhere near that level... It is difficult to say with certainty why DGW used the purported swap as a mechanism to transfer in ownership of Terminal's factory...",
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      "text": "8 http://www.sec.gov/Archives/edgar/data/1465317/000000000010057876/filename1.pdf 9 20-F, p. 42. 10 Note that DGW's filings sometimes refer to this entity as Duoyuan Facsimile, which is incorrect. 11 DGW F-1 (filed January 11, 2010), p. 123.",
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      "text": "The Property Swap that Wasn't",
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