Mineral and resources company Abterra announced yesterday morning that its auditors, Mazar, have given notice of resignation over the "non-resolution" of outstanding audit matters.
Mazar had applied to the Accounting and Corporate Regulatory Authority to seek consent to resign as Abterra's auditors over outstanding audit matters pertaining to coal trader Tianjin Bolangxin International Trading, a subsidiary in which Abterra indirectly owns 51 per cent.
The outstanding audit matters, which Abterra says it was trying to resolve with Mazar prior to their resignation, include certain trade transactions of about 211 million yuan (S$44 million), pre-payments amounting to around 53.7 million yuan and receivables of 9.5 million yuan. Other payables amounting to about 35.4 million yuan and inventories amounting to 104 million yuan were also part of the audit matters.
The auditors had also raised questions over potential related party transactions and interested person transactions, on which Abterra says it was trying to provide information when the auditors tendered their notice.
Unbeknown to the company, the former executive chairman of troubled railway parts maker Midas Holdings had been under probe by China's Economic Crime Investigation Unit before his resignation, Midas said yesterday.
The board said it had learnt that two banks in China's Jilin province had advised Midas subsidiary Jilin Midas Light Alloy (JMLA) that the police had paid visits to their branches to investigate Mr Chen Wei Ping. The police were from the Economic Crime Investigation Unit and Mr Chen is suspected of fraud relating to certain loans, the board said.
JMLA's two banks - China Development Bank and the Export-Import Bank of China in Jilin - also made requests to JMLA to provide them with explanations within five days from March 30.
In a letter dated March 30, the banks had sought information on JMLA's repayment plans for past due loans, Mr Chen's involvement in certain loans, and the financial and operational conditions of Midas, among other things.
On March 30, Mr Chen was still the executive chairman of Midas, before he resigned on April 2. However, he did not declare to the board that he was assisting in a police investigation, the board said.