STARK’s financial statement has eventually been reported, which clearly exposes the origins of the company’s corruption.
The first evident misdeed was in creating fake sales and fake account receivables. STARK has done this by turning in a fake sales report. But since there were no end-buyers, the company resorted to inventing up account receivables and amount debt they owed. The fake debt equals to 6,025 million baht.
Secondly, there was another fake sales invention, but transactions are recorded. However, the transaction was purchased by the company’s allies and no single products were ever delivered. The figures made up for this act were 1,890 million baht paid by Asia Pacific Drilling Engineering Company (APDE), a company related to one of STARK’s major shareholder and Thai Cable International Company Limited.
Additionally, a Value Added Tax payment has been made to cover up the situation. A 611-million-baht VAT payment has been willingly paid to the Revenue Department to avoid the detection of invisible sales.
Forth, an advanced payment has been made to suppliers, but the actual transaction was delivered to the APDE. Obviously, the company tried to deceive the public of a genuine transaction. But it turns out that the 10,451-billion-baht arrived at the APDE rather than where it was supposed to be.
Despite the all the frauds mentioned, the fifth factor is concealing fake account receivables by offshore payments. STARK aimed to reduce the amount of debt owned by its fake debtors with this act. Nevertheless, the 6,086 million baht that was previously said to be offshore money was traced and proved to be money from APDE, once again.
Put in another word, the APDE used the money that STARK provided to them for the invisible product transaction to wash out debts from fake accounts receivables.
After the special revision from auditor, STARK reported a total net loss of over 12 billion baht in a span of two years, while the owner’s equity amounts to a minus 4,400 million baht.
