CGA: another accounting fraud?

http://www.thestreet.com/story/10963797/1/china-green-drops-on-research-note.html

NEW YORK (TheStreet) -- Shares of China Green Agriculture(CGA_) closed 10% lower Tuesday after a small equities research firm issued a report accusing the company of fraud.

The firm, Beijing-based J Capital, said in its report that it had found "compelling evidence that China Green Agriculture ... has vastly inflated the sales and profit figures it reports to investors."

Just out of curiosity I took a look at the key annual ratios and M-scores for CGA. It does seems likely they manipulated their accounting from M-score. (if M is greater than -2.2 the probability of fraud is high)

you can google M score to know more about it or come here for a quick look: http://www.investopedia.com/terms/b/beneishmodel.asp

it's a shame if this is true. Rio, one I mentioned before, has been delisted. 

old post about Chinese ADRs: http://mzexcel.blogspot.com/2010/11/some-thoughts-on-chinese-adrs.html