KUBR

Hastie Group collapsed in 2012; ex-CFO of subsidiary sentenced over falsified books

Hastie Group Ltd (Hastie Services Pty Ltd) · Engineering and building services (ASX-listed)

Revenue inflationConcealed debtForged documents

The case in brief

Visible before detection

    Checks that could have surfaced it, on hindsight

    1

    Books edit log

    A books edit log would show entries made to close the gap between forecast and actual EBIT.

    Can mislead when: Logs can be disabled at database level (auditors qualified this in year one) or tampered with on export. Kubr needs the company to cooperate.

    2

    Operating-metric verification

    Branch-level work-in-progress checks would show the Western Australia position was worse than reported.

    Can mislead when: Contract staff do not appear in EPFO. Vahan access needs licensed APIs. Some businesses have no physical trace.

    3

    Third-party confirmation

    Direct confirmation from customers and bankers would test the figures the auditor was given.

    Can mislead when: Counterparties can collude or ignore requests. A non-response is logged as a gap, never as a pass.

    4

    Unit economics & burn

    Unit economics by branch would show the loss-making Western Australia work.

    Can mislead when: Cost allocation is a judgement call. Kubr shows its assumptions and lets the user change them.

    Where Kubr services would have helped

    Financial diligence

    Offered in India
    • C9 Unit economics by branch would show the loss-making Western Australia work.
    • C10 Branch-level work-in-progress checks would show the Western Australia position was worse than reported.
    • C12 A books edit log would show entries made to close the gap between forecast and actual EBIT.

    Valuation context

    Offered in India
    • C9 Unit economics by branch would show the loss-making Western Australia work.

    Model check

    Offered in India
    • C9 Unit economics by branch would show the loss-making Western Australia work.
    • C10 Branch-level work-in-progress checks would show the Western Australia position was worse than reported.

    Portfolio monitor

    Offered in India
    • C10 Branch-level work-in-progress checks would show the Western Australia position was worse than reported.

    Mapped from the checks each service runs. A hindsight reading of public records, not a promise that the failure would have been found.

    A summary of public documents. It reports what the sources say. It is not Kubr's finding and not a statement of guilt.