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China Aviation Oil (Singapore) Corporation Limited’s Jet Fuel Scandal (2005) – Casestudy

China Aviation Oil (Singapore) Corporation Ltd. (CAO) was involved in the biggest scandal of the city-state of Singapore since the Nick Leeson case (1995), in which Baring Bank collapsed and lost around $1.3 billion in speculative trading. Following losses of around $550 million, CAO filed for bankruptcy in November 2004. Improper application of accounting principles, and inadequate risk management systems for the speculative options deal, were the major contributing factors towards CAO’s failure.

CAO’s major portion of business came from deals in jet fuel procurement. By 2000 it obtained 92% market share of jet fuel imported to China’s civil aviation industry. A marked increase in the profits of the company was due to the monopoly CAO had in the market. Enjoying monopoly in the market the following years showed a marked increase in the profits of the company. However, wrong bets on fuel prices in 2004, by taking a bearish stance in the jet fuel market, forced the company into a scandal which cost CAO dearly.

The CEO, Mr. Chen Juilin, was held responsible for the loss and arrested and charged with fraud and failure to report losses and subsequently was fined $330,000/= and imprisoned for over 4 years.

The path to ruin

CAO started its option trading in 2002 [1]  . Initially, CAO used to deal only in derivatives of futures and swaps to hedge its jet fuel market risk. However, in the mid 2003, in order to bolster its profile in the market, CAO started trading in speculative derivative options.

The objective behind the speculative options trading was to generate profits from the premium. However, the risk of such trades was not properly assessed by CAO; in fact CAO did not have the proper risk management framework to handle such complex options. The PwC reports:

The fact that the company commenced speculative options trading in the first quarter of 2003, without putting in place a proper risk management environment, raises questions on the strength of its corporate governance” (Chan Sue Ling and Yoolim Lee)

Originally, CAO took a bullish view of the jet fuel market. Predicting that the market price of jet fuel would continue its upward trend, CAO took a long position in the market, and sold puts and bought calls. CAO predicted correctly. Favorable market trends resulted in CAO exercising the call options at expiry. Written put options expired worthless. CAO gained from the exercise of call options and from the premium of put options; this strategy yielded enormous profit for CAO in the first three quarters of 2003.

By the end of 2003, CAO revised its strategy to a bearish stance; CAO predicted that the trend of jet fuel prices would reverse and the prices of jet fuel would go down. The CEO signed contracts with several banks, buying put options and selling call options. But that was a wager the company lost. The prices soared well above the strike price of the call of $38 and CAO faced a large deficit.

Losses could have been floored if CAO had followed the risk management procedure, where a stop-loss limit would have affectively applied and further trading halted. However, despite mark to market losses of $30 million by mid 2004, the CEO increased the bet; he bought back the short-dated option and sold longer dated option. That was done in the hope that the jet fuel prices would eventually decline and the premium could be used to cover the losses. The move instead resulted in increased exposure for CAO.

The jet fuel price continued its upward trend and by October 2004, the mark-to-market losses increased to $180 million. By November 2004, when the losses had mounted to $550 million, CAO was required to meet the margin requirements but was not completely successful in doing so. CAO in their Scheme of Arrangement, dated the 30 November 2004, stated:

“the company was unable to meet some of the margin calls arising from its speculative trades, resulting in the company being forced to close the positions with some of its counter parties. From 26 October 2004 to date, the accumulated losses from these closed positions amounts to approximately US$390 million. The Company is in the process of closing the remaining outstanding positions and estimates the losses from the closure of these positions to be approximately US$160 million” (China Aviation Oil)

CAO started trading options in 2002 and 2003 but the trading was not disclosed in the financial statements. Then from March 28, 2003, CAO started trading options on its own account. By not following the best accounting principles, CAO made a very crucial error in the valuation of options. CAO valued options at intrinsic value and ignored time value of money. Such erroneous valuation of the option was done throughout 2004 by CAO. That resulted in accounting errors being present in the all quarterly disclosures.

According to the assessment done PwC, CAO should have followed IAS 39 and FAS 133; two accounting standards that recognized derivatives at fair market value. Taking time value of money into consideration, losses and not profits as reported by CAO in its disclosures, were incurred for each of the quarters:

*          PBT = Profit before tax **        Q = Quarters ***      YTD = Yield to maturity

(PricewaterhouseCoopers)

Following such heavy losses, on December 02, 2004, COA announced it would be seeking protection from creditors to avoid bankruptcy.

In August 2005, China Aviation Oil Holding, the parent company, paid an S$8 million penalty.  China Aviation Oil Holding breached Singapore’s insider trading laws by selling 15% shares of CAO to Deutsche Bank without informing the share holders.

In February 2006, CAO’s former finance chief, Peter Lim, was sentenced two years in prison for his part in the derivatives trading scandal. He was found guilty of conspiring to cheat adviser Deutsche Bank and fined S$150,000 (US$92,000) for releasing false information.

On March 15, 2006, former CEO of CAO, Mr. Chen Juilin, pleaded guilty to six criminal charges; he was fined S$330,000 and was sentenced to 51 months in jail. ( Chan Sue Ling and Denise Kee )

Timeline of the Events

Why the collapsed happened.

CAO had a risk management system in place since 2002. But neither the board nor the internal audit committee had the time and the expertise to understand the system. Additionally, the system was not prepared with speculative options derivative trading in mind but was designed for swaps and futures trading. Even then when mark-to-market losses were increasing, the system provided a loss-stop limit which was blatantly ignored by CAO. CEO restructured the options more than once in the period of crises which further increased risk exposure of CAO.

The accounting methods used were not meant for complex options. The accounting methods used looked at the intrinsic value of the option and ignored the time value component; the values of options differed significantly from those of the counter parties. Additionally, losses were not reported and accounting errors were made to show favorable financial statements. (Matulich, Serge, and David M. Currie)

The scandal provides another example in which: regulatory compliance, profit reporting and bending laws took precedence over the risk management and proper accounting reporting. There was a lack of oversight and inadequate knowledge of the market. Considering this, the lessons to take away from this case study are:

  • Better control and enhancement of risk management is necessary in order to avoid sharp, unprecedented and unexpected losses.
  • An independent risk management department which provides on the ground vigilance and responsiveness to ensure risk management policies are adhered to.
  • A team which has the required expertise to manage risk.
  • Build early-warning systems, which encourage employees to find potential risks and report them to management.
  • The financial reporting must follow the best practice with frequent and detailed disclosures.
  • In order to know the loss in different scenarios stress testing must be done.
  • One should not indulge in a market one does not have good knowledge of.

Many of the factors contributing to the failure of CAO are similar and equally applicable to different business contexts so it is important to learn from it and not to repeat it.

Chan Sue Ling and Denise Kee – March 2, 2006 05:45 EST. “China Aviation Oil’s Chairman Jia, Directors Fined (Update2).” Bloomberg.com . Bloomberg, 02 Mar. 2006.

Chan Sue Ling and Yoolim Lee – March 29, 2005 11:03 EST. “China Aviation Oil Lacked Risk Controls as Trade Losses Mounted.”  Bloomberg.com . Bloomberg, 29 Mar. 2005.

China Aviation Oil (Singapore) Corporation Ltd. China Aviation Oil (Singapore) Corporation Ltd To Propose Scheme Of Arrangement . N.p., 30 Nov. 2004.

Matulich, Serge, and David M. Currie. “The China Aviation Oil Scandal.” Handbook of Frauds, Scams, and Swindles: Failures of Ethics in Leadership . Boca Raton, FLA: CRC, 2009. 151-60.

PricewaterhouseCoopers (“PwC”). Statement of Findings . Bankrupt . N.p., 28-Mar. 2005. 14 Apr. 2014.

 [1] Started trading options in 2002

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China Aviation Oil (Singapore) Corporation Limited

Derivates also knew as an option. It is a form of a contract or actual contract which gives the right to one party but not an obligation which allows one party to perform any specific task with one party. Options can be utilized in many types of contracts. Companies are linked to many underlying assets. Most exchange-traded options on stock consider their underlying assets but OTC-options can deal with a huge variety of assets examples are bonds, currencies, swaps or commodities. Options are very important accounting tool used to generate profit for a short run but manage all related risks with options. Generally, options have two more types:1) call option 2) put option

  • Call option : in a call option, the holder has right to buy any underlying assets at specified price or strike price. But only for a certain period of time. But before the expiry date if the stock cannot meet the specified date the options going to dismiss and stock becomes Investors use call options for shares normally when the market trend shows that their prices will rise in future and they sold the shares when you get the rumor of going the prices at a low level. Selling of call options also known as writing the option. A call is a contract of option that used buyer to purchase the low prices assets. The expiry of options varies and may fluctuate between short or long-term expires. It is only beneficial for the call buyer to utilize the options if the current price is going to increase by strike price. For a set amount of time, call buyer can buy stock. If the price increases by strike price the option will have intrinsic value. And at that point when a trader sells stock, he gets profit or exercises the option before expiry. Premium has to pay by call buyer for these rights. The call writer receives the premium when exercising the options. Writing call options is a format which we generate the money for the business. Writers receive a limited amount of premium but call sellers receive an unlimited amount of profit. Call prices are normally related to per share. Call options can be in money or out of money according to requirement. In the money means the strike price is below from underlying assets. Out of money means strike price is above that strike price. While using call option, you can use money or out of money or at money. At money means both underlying prices and strike prices are same. In case of in the money premium will be higher and in case of out of money premium will be lower.
  • Put Option : input option, the holder has right to sell an underlying asset at a strike price. Input option, it is the obligation of the seller to buy all stock at a fixed price or specified price. This option can be exercised before the date of expiry. Investors buy the stock using put option when market trends show that the price of underlying stock will going to reduce or sold the stock when the prices of underlying stock will going to high. Long holding put buyer are those buyers who may work as insurance buyer to secure their long positions in a stock or speculative buyers who are looking for leverage for the period of time which utilize options. As an expectation of market to go upward, put seller holds for a short period. Downward market turn is the worse condition for the put The profit is limited as the amount of premium is consider as profit and it only receive when the underlying prices go above the option’s strike price before the date of expiry. The loss is unlimited which has to face the put seller. Buyer has to pay an option premium to exercise this right. This amount is payable at the time of options is started for obtaining the right. Premium is also paid at this time. It’s a contract that provides right to sell the underlying assets at a specified price before expiry. For put buyers it’s only beneficial when option exercise and force the seller to sell at a specified price only when the strike price is greater than underlying price. For a set amount of time, put buyer can sell all stock at a specified price. The option will be worth full if the number of underlying moves below to strike price. A seller can exercise the option at the date of expiry or sell the option of earning a profit. Put buyer pays the amount of premium to attain these rights. Writers of put option receive the amount of premium. Input option, writing is a way to make income. The amount of premium which a put writer receive is limited in quantity but can earn an unlimited amount of money when the price of the stock going to be zero. Put prices are measure according to per share amount. Put option can be in the money, at the money or out of money. In money put specified price is greater than underlying prices, and out of money means strike price is less than underlying price and at the money means that strike price and underlying prices are same. Any option can be selected while choosing an option. Amount of premium increase when you use the money and premium is going decrease when you select out of money.

The pricing of options is very complicated because the premium includes many factors like the volatility of underlying assets, in or out of money options and expiry duration of stock. These inputs are known as Greeks and having to worth before selecting options.

An IAS 39 financial instrument creates principles of recognizing and calculates financial assets, some contracts to sell or purchase non-financial assets and financial liabilities. It also mentions rules for derecognizing financial instruments and for hedge accounting. The disclosure and presentation are the subjects of IFRS 7 and IAS 32 of financial instruments.

In a financial statement, financial instruments can be recognized when in the financial instrument contract an entity becomes a party. When the obligation is expired, the financial liability will be removed from financial statements. When entity removes from the financial statements, the financial assets when the right of asset cash flow is finished or when asset transfer including all risks and rewards, when ownership transfer only but the current part has to face all risks and rewards . in simple, the retention of risk and reward recognized an asset. Financial liabilities or financial assets may be measured at fair value, sometime amortize cots also used but the fairest value will be used. The following financial liabilities or assets show that who measure at fair value and who at amortize costs. 1) measure at amortizing cost: loans and receivables, financial liabilities that not carried at fair value, and held to maturity investment,2) measured at fair value: financial assets and liabilities for trading, and available for sale financial assets.

Now we move to the discussion of Cao.

China aviation oil corporation Ltd is a subsidiary of China national aviation fuel group by having 51% of shares in CAO. It is trading in jet fuel and considered as most well known and well-reputed organization of Singapore .the main business of Cao is to supply fuel, trading of other oil products and investment in oil-related assets, In 1993 Cao has top of the list in Singapore exchange security commission. BP is the strong strategic investor who holds 20% of shares in CAO.

At the end of third quarter 2003, it starts trading by call options. They want to increase the price of their share and also want to increase the profit of the company. When the prices of oil increase, company has earned a large amount of profit. The company uses this method without the permission of directors and without managing the risks related to those prices. This strategy will work also in the fourth quarter but after this, the price of oil going to decrease speedily and in 2005 company has to suffer 550 million losses. Now, what should a company do to overcome these losses and again make its good reputation in the market!

Basically, derivates are the estimation of market trends and demand of market which affect the progress of companies on both sides. Special managing team and decision makers have to appoint in companies which handle all such problems and try not to disturb our profit and market reputation. Another point is that the prices of oil or fuel always goes upward as from many years we have studied in the company and always give a reasonable profit to a company which helps to improve its position in the market. Although, the strong need of making such type of strategies in which legal and financial instruments should be utilized because the market is unpredictable. We only determine through past experience but we cannot give facts and figures regarding future condition of the market.

The CEO of the company also not focuses on the insufficiency of the market. He only attention on completing the call and put options as their expiry date arrived but this will suffer our great loss of 550 million, also destroy the reputation of the company.

Always use proper rules and regulations and for accounting point of view adopt international accounting standards for preparing their books of accounts and by following international rules, the company becomes more trustworthy in front of other companies and in customers.

China aviation oil corporations dealing in a very sensitive commodity which is oil and all oil-related products and oil-related assets. These commodities are very sensitive to prices and their market has no assurance to maintain the price in future. Price s of these commodities are differed because of different economy changes, political changes in the country, climate changes, therefore, its price is unpredictable and company should concern all pros and cons before starting any dealing with any third party. Another important thing is that they should be done fair dealing with their customers and clients. Because clients’ satisfaction level is very much important and in this field good customer can give you good price rate and make your reputation at a good level in the markets. Its parent company China national aviation fuel group corporation supports its subsidiary to reveal from these crises. It provides better funding and helps to motivate and again come in the list of best companies in this industry. Its strategy investors also support and don’t let the company in crises. They fully support it and help to raise the share price of the company in the market. Corporations having unique commodities like oil, fuel should take new steps regarding the prices very carefully. Because big change can raise their profit but a big downfall can destroy the image and financial condition of the corporation.

Expect all the above discussion, it doesn’t mean that using options are always cause a loss of the business. In many businesses, call and put options use constantly these companies earn many incomes from exercise these options.  But to some extent, it also depends on the commodity. High rated and sensitive commodities whose rate may drastically change will not deal in this regard. This call and put options are very useful but only for short time period. This would not be suitable for long-term stocks because prices will be change speedily and in long-term, they may not give the proper or sufficient amount of profit in future. The premium amount is also profit for the company but same as above for short period.

Conclusion:

The crux of all above discussion shows that CAO is a high commodity dealing corporation and they should be careful about the price fluctuation of oil or fuel in future according to market demand and trend. Options are accounting instruments and used to generate income in a short period of time. CAO use to call and put option to generate money but in a few months later they have to face a drastic loss of 550 million which collapse the dealings of CAO in the market and their market image going to destroy. Its reputation going to finish in the market. Now they take precautionary measurements to again settle their business dealings with customers. Use proper accounting tools that legally have worth in the market. Be careful about the prices of oil and fuel regarding future. Options or derivatives are also very helped full tools of accounting which use to generate income for short period of time because the prices will not remain same in long terms. Two type of options used in companies; call option and put options. Basically, options not only related to purchase of underlying assets it also belongs to the selling of underlying assets according to strike prices. Which include in money, at money and out of money, this will help to increase the amount of profit and premium for seller and buyer in short period. IAS is the internationally renowned and most important and famous standards that are used in every multinational company. Now it’s become the rule for companies to follow proper accounting standards for record keeping and making statements. For the authenticity point of view, it is compulsory to follow up these standards for external auditing because each and every entity record should be kept and safe by following some rules and regulations. The company also follow its rules and regulations built for accounting and calculating profit, we have to adopt these rules or standards which shows the accuracy and true data entering from all aspects of the company.

References:

  • (Options: Calls and Puts By Investopedia, 2018, Investopedia, LLC.)
  • (Descriptions of call and put options) (BY ADAM MILTON Updated February 15, 2017)
  • (IAS 39 Financial Instruments: Recognition and Measurement, IFRS Foundation 2017)

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China Aviation Oil (A): All at Sea

Subjects Covered Business & government relations Corporate governance Cross cultural relations Derivatives Expansion International business Restructuring Risk management State-owned enterprises Strategy

by Stewart Hamilton, Jinxuan (Ann) Zhang

Source: IMD

28 pages. Publication Date: Oct 08, 2007. Prod. #: IMD346-PDF-ENG

China Aviation Oil (A): All at Sea Harvard Case Study Solution and HBR and HBS Case Analysis

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China Aviation Oil (B): Stormy Waters Harvard Case Solution & Analysis

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china aviation oil case study solution

The three parts of China Aviation Oil (CAO), documents a series of adventures overseas growth, fall and subsequent restructuring and reorganization, the leading Chinese state-owned enterprise in the last ten years or so. Case is designed to address the issues in an integrative manner often face (1) increasing the number of Chinese leaders are now in the international arena, and (2) the Western leaders who have experience working with Chinese companies and Chinese leaders, or who would like to do so - either in China or its market. There have been many cases of multinational corporations in China, where cultural differences have been charged for something that does not work on things that were not understood, or even frustration when working with Chinese companies and Chinese leaders. However, the real question is: Are we aware of other differences, such as financial and legal? Do we understand them and, perhaps more importantly, how we can work with them? Case series describes the first international restructuring of public Chinese company. As such, it provides participants with a completely different angle, looking at the dilemma of dealing with China: How to make it work outside of China from the Chinese perspective. Learning objectives: case series was designed to allow participants to get a clear idea of ​​some of the general issues, including: 1) the strategic considerations of the Chinese company wishing to expand abroad, and key success factors. 2) the fact that many of the factors affecting the failure similar and equally applicable to different business conditions - although the types of failures can be different . 3) the need to be open - the "rules" are different inside and outside of China. 4) the need to raise awareness and better understanding of differences - financial, legal, cultural and even moral. 5) the need to work with the differences, rather than avoid them. "Hide by Stuart Hamilton, Jinxuan (Ann) Zhang Source: IMD 16 pages. Publication Date: 08 Oct 2007. Prod. #: IMD348-PDF-ENG

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China Aviation Oil (A): All at Sea Case Solution & Answer

Home » Case Study Analysis Solutions » China Aviation Oil (A): All at Sea

The three parts of China Aviation Oil (CAO) case series documents the adventure abroad – the rise, fall and subsequent restructuring and rebuilding – a company owned by the Chinese state leader in the last decade or so. The box is designed to address one of the issues commonly found in integrated form of (1) increasing the number of Chinese executives playing now in the international arena and (2) the Western leaders who have experience working with Chinese companies Chinese executives, or would like to do – whether in China or in their own market. There have been many cases of multinational travel in China, where cultural differences have been blamed for things that do not work, things that are not understood, or even frustration when working with Chinese companies and Chinese executives. However, the real questions are: Are we aware of other differences, for example, financial and legal? We understand them and, perhaps more importantly, how can we work with them? The first series of cases described in the restructuring of public enterprises abroad China. As such, it offers participants a totally different angle to see the dilemma of working with China: How things work outside China from the Chinese perspective. Learning Objectives: The case series was designed to enable participants to gain an understanding of some key issues, including: 1) strategic considerations for a Chinese company wishing to expand overseas, as well as key success factors. 2) The fact that many of the factors that contribute to failure are similar and equally applicable to different business contexts – even if the types of failures can be different. 3) The need to have an open mind – the “rules” are different inside and outside China. 4) The need for greater awareness and understanding of differences – financial, legal, cultural and even moral. 5) need to work with the differences rather than avoid them. by Stewart Hamilton, Jinxuan (Ann) Zhang Source: IMD 28 pages. Release Date: October 8, 2007. Prod #: IMD346-PDF-ENG The China Aviation Oil (A): All Case Sea Solution

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  1. Case Study: China Aviation Oil (Singapore) Limited

    Priyam Mitra X017- 20 03. Rahul Sharan X018- 20 04. Rana Singh X019- 20 05. Sachin Yadav X020- 20 PGEXP : 2020 - China Aviation Oil Corp Ltd. was an overseas controlling subsidiary of the China Aviation Oil Holding Company. On May 26th 1993, China aviation oil (Singapore) Pte limited was incorporated as a private company limited by shares.

  2. China Aviation Oil (Singapore) Corporation Limited's Jet Fuel Scandal

    6 mins read China Aviation Oil (Singapore) Corporation Ltd. (CAO) was involved in the biggest scandal of the city-state of Singapore since the Nick Leeson case (1995), in which Baring Bank collapsed and lost around $1.3 billion in speculative trading. Following losses of around $550 million, CAO filed for bankruptcy in November 2004.

  3. China Aviation Oil (A): All at sea

    The three-part China Aviation Oil (CAO) case series documents the overseas adventure - the rise, fall and subsequent restructuring and rebuilding - of a leading Chinese state-owned enterprise over the last ten or so years. The case is designed to address in an integrative manner issues commonly faced by (1) the increasing number of Chinese

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    The three-segment China Aviation Oil (CAO) case series files the abroad experience-- the increase; fall and subsequent restructuring and restoring-- of a leading Chinese state-owned business over the last 2 to 10 years.

  5. China Aviation Oil's Collapse: Singapore Inc's Challenges

    China Aviation Oil (CAO), voted as the most transparent company listed on Singapore Exchange, had collapsed because of a US$550 million loss in speculative oil trading in 2004. ... The case study throws light on the scandal and offers scope for discussing the challenges facing Singapore. Meanwhile, CAO had managed a bail-out plan, and it was ...

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    China Aviation Oil (Singapore) Limited - Sliding down a Slippery Slope: The US$550m Derivative Trading Loss of November 2004. This note focuses on the events that led to the decline of China Aviation Oil under US$550m of derivative trading losses and following attempts to identify the causes and save the company from liquidation via a debt restructuring scheme of arrangement.

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    IMD-3-1890 © 2007 Zhang, Jinxuan; Hamilton, Stewart. The three-part China Aviation Oil (CAO) case series files the overseas experience - the increase; fall and subsequent restructuring and restoring- of a leading Chinese state-owned business over the last 10 or so years.

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    View China Aviation Oil Case Study .docx from FINANCE 305 at Harvard University. China Aviation Oil (Singapore) Limited Case Study Analysis: Class: MBA 2022-24 Section: C Group 1: Ashish Ranjan ... China Aviation Oil Case Study .docx - China Aviation Oil ... Doc Preview. Pages 9. Identified Q&As 2. Solutions available. Total views 25. Harvard ...

  11. Case Study of China Aviation Oil Corporation Ltd

    A Case Study of China Aviation Oil Corporation Ltd. Background; introduction to CAO; China Aviation Oil (Singapore) Corporation Ltd (CAO) is the Singapore subsidiary of China Aviation Oil. CAO was established in 1993 and its main business were jet fuel (kerosene) purchase for Chinese airports and international trading of fuels. CAO developed ...

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  14. China Aviation Oil (C): Oil on Troubled Waters Case Analysis & Solution

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    Assignment of China Aviation Oil Corporation Limited China Aviation Oil China Aviation Oil Case Study China Aviation Oil Case Study Solution China Aviation Oil Corporation Limited IAS 39. China Aviation Oil Case Study Solution. Derivates also knew as an option. It is a form of a contract or actual contract which gives the right to one party.

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    China Aviation Oil (A): All at Sea case study solution, China Aviation Oil (A): All at Sea case study analysis, Subjects Covered Business & government relations Corporate governance Cross cultural relations Derivatives Expansion International business Restructuring

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    Subjects Covered Business & government relations Corporate governance Cross cultural relations Derivatives Expansion International business Restructuring Risk management State-owned enterprises Strategy. by Stewart Hamilton, Jinxuan (Ann) Zhang. Source: IMD. 28 pages. Publication Date: Oct 08, 2007. Prod. #: IMD346-PDF-ENG. China Aviation Oil (A): All at Sea Harvard Case Study Solution and HBR ...

  20. China Aviation Oil (B): Stormy Waters Case Solution And Analysis, HBR

    China Aviation Oil (B): Stormy Waters Case Solution,China Aviation Oil (B): Stormy Waters Case Analysis, China Aviation Oil (B): Stormy Waters Case Study Solution, The three parts of China Aviation Oil (CAO), documents a series of adventures overseas growth, fall and subsequent restructuring and reorganization, the

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    Subjects Covered Business & government relations Corporate governance Cross cultural relations Derivatives Expansion International business Restructuring Risk management State-owned enterprises Strategy. by Stewart Hamilton, Jinxuan (Ann) Zhang. Source: IMD. 16 pages. Publication Date: Oct 08, 2007. Prod. #: IMD348-PDF-ENG. China Aviation Oil (B): Stormy Waters Harvard Case Study Solution and ...

  22. China Aviation Oil (A): All at Sea Case Solution & Answer

    The three parts of China Aviation Oil (CAO) case series documents the adventure abroad - the rise, fall and subsequent restructuring and rebuilding - a company owned by the Chinese state leader in the last decade or so.