中航油公司案例分析

CAOSingaporeCaseStudyofInternalContro lB4 YANXIAODI工商4班闫晓迪Exchange,becomingChina'sfirstself-ownedassetsabroadbyoverseaslistedChinaAviationOilCo.,Ltd.wasestablishedin1993,isalargestate-ownedenterprisesdirectlyundercentralgovernmentofChinaAviationOilHoldingCompany'soverseassubsidiariesExchange,becomingChina'sfirstself-ownedassetsabroadbyoverseaslistedChineseenterprises.ChenJiulin,undertheleadershipofthepresident,CAOSingapore'stradeSingapore'stradefromthebrinkofbankruptcyenterprisesintocorporateentitiesTradeandIndustry,thebusinessexpandedfromasingleprocurementofimportedjetfueltotheinternationaloiltrade,thenetassetsstartingfrom1997whenthe$219,000increasefor2003of1billionU.S.dollars,thetotalassetsofnearly30million,hasbeen"boughtanoilempire",theincidentbecameassetsofnearly30million,hasbeen"boughtanoilempire",theincidentbecamethestarofthecapitalmarket.CAOSingapore,NationalUniversityofandappearedinthe"BeijingUniversityDistinguishedAlumni"list.However,despitedrasticchangessince2004,ChinaAviationOilSingaporecompaniesinhigh-riskoptionstradinginoilderivativessufferandappearedinthe"BeijingUniversityDistinguishedAlumni"list.However,despitedrasticchangessince2004,ChinaAviationOilSingaporecompaniesinhigh-riskoptionstradinginoilderivativessufferhugelossesandbankruptcy,becomingthebiggestbankruptcyofBaringsBankscandalspeculation.Thefirstquarterof2004,oilprices,thecompanyhiddenlosses$5,800,000,ChenJiulincanexpectoilpricesfellback,decidedtodeferdeliveryofthecontract,tradingvolumealsoincreased.Inthesecondquarterasoilpricescontinuetorise,thecompanyincreasedthecarryingamountofthelossof3000000milliondollars,afterChenJiulinkeptputtingthedecisiontodeliveryin2005and2005and2006,tradingvolumeincreasedagain.Octoberoilpriceshigh,andthecompanyhasreached5200millionbarrelsoftradingbets.Additionaldealersforadditionalmargin,thecompanyrunoutof2600millioninworkingcapital,capital,1.2billionofsyndicatedloansandreceivables6800millioninfunding,booklossofupto1.8billionU.S.dollars,theothertopay8000millioninbooklossofupto1.8billionU.S.dollars,theothertopay8000millioninadditionalmargin,seriouscashflowproblems.October10,thegroupreporteddealsandbookdealsandbooklossforthefirsttime.October20,get15%ofthecompanyplacingthestockaheadof108milliondollarsfromloans.October26and28,duetoadditionalcontractscannotguaranteewhoweretheCorner,thecompanysufferedactuallossesof132million.8to25November,thecompany'sderivativescontractstocontinuebeingtheCorner,theactuallossamountedto381million.December1,lossof5.5billionU.S.dollars,thiscompanytotheSingaporestockexchangeforsuspension,tothelocalcourtforbankruptcyprotection.I.AnalysisofInternalControlMarch2005,March2005,SingaporePricewaterhouseCooperssubmittedafirstreportthatCAOSingapore'shugelossescausedbymanyfactors,including:thefourthquarterof2003,theerroronthefutureoilpricesJudgement:Thecompanyfailedtoassesstheoptionsbasedonindustrystandardportfoliovalue;lackof(A)controlenvironmentChinaAviationOilSingapore,thecompanyhiredwell-knowninternationalaccountingfirmErnst&Youngprevailinginternationaloilcompaniestodevelopariskmanagementsystem,establishameetingofshareholders,boardofdirectors,management,riskmanagementcommittee,internalauditbasicoptionstoimplementriskmanagementmeasuresspeculation;ofoptionstradingriskmanagementrulesandcontrols,managementdidnotmaketheimplementationofthepreparation.Butinthefinalanalysis,CAOSingaporerootofthe(A)controlenvironmentChinaAviationOilSingapore,thecompanyhiredwell-knowninternationalaccountingfirmErnst&Youngprevailinginternationaloilcompaniestodevelopariskmanagementsystem,establishameetingofshareholders,boardofdirectors,management,riskmanagementcommittee,internalauditcommitteesandriskpreventionsystemofchecksandbalancessystem,butalsoSingaporeSecuritiesandFuturesCommissionunderthestrictsupervision.However,"stronggovernance"culture,theinternalcontrolsystem,thepowergone,theCAOistherootcauseoftheincident.Internalcontrol.CAOSingaporeinthecompany'sequitystructure,duetothe dominance the the dominance the company,shareholders will not be binding on thecompany's largest shareholder decision-making, many scattered smallshareholdersjusttogetinvestmentincome,littleornowordonmajordecisionsright.CompositionoftheBoard,mostdirectorsandCAOSingaporecompany company executives and independent directors to be marginalized indecision-makingdidnotconstituteamajorconstraint.Inthisway,boardofdirectorsandmanagementandthethreecombined,decision-makingandimplementationofone,eventuallydevelopedintoonebyadictatorshipoftheoperators,themarketrulesandtheinternalsystemfailure,theprocessofdecision-makingandoperationofthemystery,secrecyoriented,autocraticdecision-makinganddailyflowoftechnology.PresidentChenJiulinandGroupVicePresident,ChinaAviationOilSingaporeisbasicallyoneperson's"world."ChenJiulinhiredlocalpeoplefromSingaporeasafinancialmanager,justlistentohim,whereasthefirmwithoutthecompany'sfinancialmanagersent:theoriginalsenttoaspiringfinancialmanager,shewasnotonthegroundsChenJiulininforeignlanguages,travelmanagerofthecompanytransferred;secondfinancialmanagerassistanttothepresidentforthecompanywerearranged.PartysecretaryofthecompanysentmorethantwoyearsinSingapore,hasbeenengagedinoff-ChenJiulinfuturesdonotknowthespeculativetransactions.Theruleoflaw.10October2004Japan-ChinaAviationOilSingaporeCorporationreporttotheExchangewillhaveamajorloss,ChinaAviationOilSingapore,thecompanyfailedtoindependentdirectorsandboardofdirectors,externalauditors,theSingaporeStockExchangeandthesocialsectorinvestmentandsmallshareholderswhodisclosedthisimportantinformation,butpublishedintheNovember12financialreportthird-quarterearningsstilllied.GroupinOctober20willhold75%ofCAOSingaporeshares15%oftheplacementto50institutionalinvestors,willreceive$107,000,000ofthefundstofinancetheacquisitionofthename,misappropriated,asintheAirSingaporeoilfuturesmargin.Disclosuretoinvestorsfalseinformationtoconcealthetruth,suspectedfraud,whichconstitutesaseriousviolationoftheSingaporeCompaniesActandthelegalprovisionsofthelistedcompany.Managementquality.Qualitymanagementmeansmorethanjustknowledgeandskills,includingintegrity,ethics,values,worldviewsandotheraspects,directlyaffectingthebehaviorofenterprises,therebyaffectingbusinessefficiencyandeffectivenessofinternalcontrols.ChenJiulin,therearemanyweaknesses,themostobviousisthebetoftheweight,spenttoomuchtimeandenergyonthegameinthespeculativetrading,thespottradingseeDanruwater,whichisthefuturesmarket,themosttaboo.Followedbytheblindlyarrogant,asanetassettotherapidexpansionfrom$219,000toU.S.businessesbillionsofdollarsPresident,thereareindeedsuperiortoothers,butblindarrogancehasledtoarash,donotrespectthelawsofthemarket,refusedtoacknowledgeandcorrecttheerror.ChenJiulinsaid:"Ifyougiveme$500,000,000,Iturnedout."WordsthatdonotunderstandthemselvesChenJiulin,ChinaAviationOilSingaporeZaidaoroots.Alternativecorporateculture.State-ownedChinaAviationOilSingaporeexposedtheexternalsupervision,theinternalgovernancestructureisnotperfect,especiallyinthevirtualboardisset,over-centralizedstate-ownedenterprisemanagersofstate-ownedenterprisesischaracterizedbyseriousproblemssuchaslackoforganizationalcontrol.Thismakesthesurvivalofmodernenterprisestointernationallyrecognizedrulesofthegameamereformalitywiththepublic,eveniftheformalestablishmentofthecorporategovernancestructure,inessence,decisionswillstilloperateuncheckedevent,the"numberone"thefinalsay.CAOSingapore,asthecorporategovernancestructureforthedisplayofthealternativeculture,istryingtoimprovestate-ownedenterpriseslistedoverseasmeanstheimprovementgovernancestructureprovidesanegativecaseenvisaged.(B)goal-settingTheobjectiveoftheManagersshouldbeabletoproperlysetgoals,maketheselectionofthetargetcansupport,connectivitywiththeenterprise'smissionandconsistentwithitsriskappetite.Since1997,ChinaAviationOilSingapore,thecompanyhasconductedtwostrategictransformation,thefinalpositioningoftheoilindustryinvestment,internationaloiltradingandprocurementofimportedjetfuelfortheintegrationofacombinationofindustrybusinessentities.ChenJiulin,undertheimpetusofthePresident,CAOSingaporelistedcompanyfromthebeginningof2001,begantogetinvolvedinoilTheobjectiveoftheestablishmentofthearbitrarinessandtheriskofcontemptofgoals,andestablishmentofthearbitrarinessandtheriskofcontemptofgoals,andultimatelyenableenterprisestobeoverwhelmedbythestormysea.ultimatelyenableenterprisestobeoverwhelmedbythestormysea.(C)identifyissues(C)identifyissuesAnorganizationmustidentifyitsobjectivesofinternalandexternalmatters,thedistinctionbetweenmatterandsaidthattheopportunitiesofriskissues,andguidethemanagementofthestrategyorgoalhasalwaysbeennottobedeviatedfrom.IntheCAOcase,ifthecompany'smanagementtopromptlyrecognizethesituation,tomakehugeprofitsinasoberawarenessofpossiblerisks,andperhapswouldnothavesufferedsuchapainfulblow.risks,andperhapswouldnothavesufferedsuchapainfulblow.CAOSingaporeirregularitiesinthreepoints:First,dothethingsprohibitedbythestateCAOSingaporeirregularitiesinthreepoints:First,dothethingsprohibitedbythestatetodo;thesecondisoverthecounter;thirdmorethanthespottradingvolume. China Aviation Oil Singapore, the oil companies engaged inspeculativeoptionsisexpresslyprohibitedourgovernment.August1998theStateCouncilissuedthe"StateCouncilonfurtherrectifyandregulatethefuturesmarket,thenotice"clearlystates:"toobtainthebusinesslicensesofenterprisesoverseasfuturesinoverseasfuturesmarketstohedgeonly,notforspeculation."June1999,theStateCouncilissuedthe"ProvisionalRegulationsonFuturesTrading,"ArticleIV:"FuturesTradingFuturesEhibitedbytheFuturesExchangeFuturesoff."forty-eightharticle:" State-ownedenterprisesengagedinfuturestrading,restrictedtohedgingoperations,thetotalfuturestradingvolumeshouldbethespotwiththesameperiodtoadapt."October2001,theCommissionissuedthe"state-ownedenterprise system of Overseas Futures Hedging business managementguidance"ArticleIIprovidesthat:"accesstooverseasfuturesbusinesslicensesofenterprisesengagedintheoverseasfuturesmarkethedgingtransactionsonly,notforspeculation."riskassessmentCAOSingaporePetroleumCompanyisengagedinOTCderivativesRiskassessmentistoanalyzeandconfirmtheimplementationprocessoftheinternalcontrolobjectives"negativeuncertainty",tohelpcompaniesdeterminewherethereisarisk,howriskmanagement,andwhatmeasuresneedtobetaken.CAOSingaporePetroleumCompanyisengagedinOTCderivativestrading,trading,highleverage,risk,complexityandothercharacteristics,butthereisnoreasonablypricedduetointernalderivatives,greatlyunderestimatedtherisks,coupledwiththeAirSingapore'schoiceofoilisaprivateone-offtransaction,thewholeprocessairtight,sothecompanyChinaAviationOilSingapore,theriskismuchgreaterthanthetradingfloor.riskresponseCAOSingaporespeculativetradinginoilderivativesleadtodisaster,thedirectcauseisnotcomplicated:ChinaAviationOilSingaporefindstheinternationalpriceofabarreloflightcrudeoilwasovervaluedbyabout10U.S.dollars,intheoilfuturesmarket,alargenumberofshortcontract.Intheinternationaloilfuturespricesrosesharplyinthecircumstances,wasforcedtocontinuetomargincalls,uptoandincludingthecashflowcreditfacilities,includingathoroughdryingup.Asinternationaloilfuturestoa5%margincontractsheld20 times magnification, CAO Singapore means that the huge loss of$550,000,000"gamble"ofabout110billionU.S.dollarscontract,andintradingprocessasa"deadshort",thereisno"flipover"to"hedge."Hiddenlossesintheamountofrisingoilpricesledtosoaringcases,themanagementofChinaAviationOilSingaporesuccessivedelayeddeliverycontractselection,expectedoilpricesaredown,tradingvolumealsoincreased.Againandagain"movedisk"theduedatepushedbackagainandagain,thisresultisthattherisksandcontradictionssnowballdoublewildlyexpanding,ultimatelycannotcontrolthepoint.Callthesellernormallywillbasicallydoareversetransactionstohedgerisk,reducethepossibilityofloss,althoughthecompanyChinaAviationOilSingaporehasaprofessionalteamofriskcontrol,butdidnotdothereversehedging.controlactivitiesCAOSingaporecompanyhashiredinternational"BigFour"accountingfirmErnst & Young,one of itspreparation,"Risk Management Manual", aspecialized risk management committee of seven people and softwaremonitoringsystem.Implementationofthetraders,riskcontrolcommittee,department,presidentoftheboardofdirectorsseverallevels,cross-controlsystem,requireseachtraderlossof20milliondollarstotheRiskControlCommitteereportsandadvice;whenthelossof35milliondollarsreportsandcommentstothepresident,thepresidentoftheagreementaretocontinuetrading; any resulting loss of 50 mill