The Department of Special Investigation (DSI) says it will spend a few days to study details of the criminal complaint against directors and executives of G Steel Plc, a SET-listed maker of hot-rolled coil, before deciding whether the case needs further investigation.
"We need to look into the details of the complaint document and whether we need information from the Securities and Exchange Commission (SEC) or from the company," said Pol Lt Col Wannapong Kotcharag, deputy director of the DSI.
"It will take a few days to see whether all documents from the SEC cover everything."
The SEC filed the criminal complaint last week against directors and executives of G Steel and subsidiary GJ Steel Plc (GJS), including Somsak Leeswadtrakul, for committing or permitting acts that falsified company accounts.
Four executives were allegedly found making false entries concerning the purchase of raw materials from foreign suppliers materially lower than the actual value to deceive persons about the financial condition and performance of the companies, the SEC said in a statement.
The SEC in early 2008 found G Steel and GJS made advance purchase orders for a large amount of steel from foreign suppliers at the market price. Later, the steel price dropped sharply, causing the companies to realise huge losses due to high production costs.
However, G Steel chief executive Ryuzo Ogino denied any wrongdoing, saying it was a time discrepancy as the company renegotiated with its raw materials supplier.
Mr Ogino said the steel industry had suffered unprecedented price fluctuations since 2008, when scrap used for hot-rolled steel fell sharply from US$750 a tonne to $250 in just a few months, forcing the company to renegotiate prices.
"Since the negotiation for a scrap price reduction was not yet concluded, it caused a discrepancy in the information used for recording our debts to scrap suppliers. There was no intention to falsify the accounting records to mislead the public," he said.
Mr Ogino said his company would clarify its position to the SEC and was also ready to give further information to the DSI.
"We respect the SEC regulations and are confident that we did the right thing and have sufficient evidence to clarify ourselves," he said.
Mr Ogino said the company expected better revenue this year due largely to recovering hot-rolled steel prices and falling raw material prices.
Prices of hot-rolled steel are now about 18,000 baht a tonne, up from a low of 17,000 baht in last year's fourth quarter but still well below the average price of 22,000 baht in recent years.
Mr Ogino expects the steel industry and his company's performance will recover in the second half of this year, when several government infrastructure megaprojects are due to start and boost demand for steel.
However, the company will remain in the red due to to its debt burden, he said.
G Steel's debt stands at 37.4 billion baht, while its assets are 21.2 billion.
The company posted a net loss of 2.1 billion baht last year following a loss of 2.3 billion in 2013.
"We expect to have better figures this year due to rising revenue and demand for steel," Mr Ogino added.