SINGAPORE - Trading in shares of fabric maker China Taisan Technology was suspended with immediate effect on Monday (June 4), after the board said the state of affairs of the company cannot be ascertained given developments in an ongoing audit.
In a slew of regulatory filings released on Monday, China Taisan said the management is "still in the midst of preparing and completing the necessary works" for the annual general meeting. China Taisan is looking to extend the deadline for which it can hold its AGM to June 30, 2018.
It added that as the management "is unable to fulfil the requests of the auditors for the valuation of PPE (property, plant and equipment) expenditure", the board will take "necessary actions" to protect the interest of the company and shareholders.
It further announced that its proposed subscription of additional shares has been pulled, as the Singapore Exchange (SGX) said the company has "unresolved audit matters". The company had earlier proposed to issue 11.2 million new shares, but SGX's rejection on May 31, 2018 led to the lapse in the subscription agreement's long-stop date.
The SGX has quizzed the company, which has been on the distressed watch list for about a year, on various issues ranging from key boardroom appointments and departures to the valuation of certain assets to its financial books. In June 2017, China Taisan's independent auditors RT LLP cast significant doubts over the firm's ability to continue as a going concern over its audited financial statements for the year ended December 2016.