Acra rejects China Environment's request to again defer AGM, filing of financial statements

SINGAPORE - Mainboard-listed China Environment on Friday (May 18) said the Accounting and Corporate Regulatory Authority (Acra) has rejected its application to extend the deadline to hold its annual general meeting (AGM) to June 30.

Acra had on Feb 22 granted the company a final extension to hold the company's AGM by April 30, to restate and re-audit its FY2013 and FY2014 financial statements, as well as to produce its financial statements for FY2015 and FY2016.

But China Environment had requested for another extension of this deadline to produce its financial statements, and to push back the deadline to hold its AGMs for financial years 2015 and 2016.

China Environment said in an exchange filing on Friday that as a result of Acra's requirement to restate and refile its FY2013/2014 financial statements, its audited financial statements for FY2015/2016 will be deferred.

On Aug 21, 2015, Acra had issued a warning letter to the company's directors Huang Min and Wu Jida, who were responsible for the financial management of the firm, followed by an advisory letter with regards to the group's FY2013 audited financial statements.

The Business Times previously reported that the firm had ceased business operations in its China subsidiaries. As at April 2018, various enforcement orders have been taken out against these subsidiaries including eight enforcement orders totalling 151 million yuan ($32 million).

However, as these subsidiaries are limited liability entities, the company does not intend to pay off the civil suit liabilities since its long-term plan is to either liquidate or dispose of the subsidiaries, China Environment had said.

The counter remains suspended and last traded at $0.037 apiece on June 23, 2016.