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  "documentTitle": "Olam International Ltd. (SGX:O32)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson Block",
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  "presentationDate": "2012-11-27 00:00:00",
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  "notes": "This is a page from an activist short-seller report (Muddy Waters on Olam) detailing accounting inconsistencies.",
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      "text": "We believe Olam management could be using its desired net income as an input rather than an output when constructing its financials, and that the reported figures might therefore be misleading for investors.",
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      "text": "66 Some accounting revisions have been pointed out in the CLSA report and in reports by third party researchers.",
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      "text": "a. The extensive and prevalent restatements of numbers between quarterly reports and audited annual reports consistently maintain constant net income figures, despite defying apparent accounting logic in certain cases.\nb. We are also suspicious of Olam's reported balance sheet figures.",
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      "text": "It did not address the times when accounts have changed from audited statement to audited statement (e.g., FY2009 to FY2010).\nWhile some of the many changes made by Olam could be reclassifications, a disturbingly high proportion of the changes do not have offsetting changes in similar accounts...",
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      "text": "1) We believe Olam management could be using its desired net income as an input rather than an output when constructing its financials, and that the reported figures might therefore be misleading for investors.",
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      "text": "Likely in response to the scrutiny caused by the CLSA report, Olam cut down significantly on the changes in FY2011 and FY2012. However, CapEx has increased tremendously, and we wonder whether at least part of reported CapEx is somehow used to plug these accounting problems...",
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      "text": "There are three points to make about the Company's response:",
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