investigation of forge group collapse underway, page-10

Veecat

financial statements always showed extent of bank guarantees / bonds. normal course of business wouldnt be a problem as job would get done ( hopefully at a profit ) and guarantee would be returned without incident. happens all the time in the contracting business.

problem here is that they couldnt do the job and these contigent liabilities became very real.

takeaway here is to read the full financial statements and not rely on the cherry picked figures given by any management in a shareholders preso. devil is in the detail as they say.