SGX calls for cash audit of China Taisan

The Singapore Exchange (SGX) yesterday instructed troubled fabric maker China Taisan Technology to appoint an independent special auditor to perform a cash audit of the company going as far back as 2014.

The SGX has also required that China Taisan clear the terms of reference of the special audit with it. This should include a review of the circumstances surrounding the acquisition and payment of PPE (property, plant and equipment) expenditure of 160 million yuan (S$33.4 million), including the valuation report signed off by Fujian Mincai Certified Public Accountants on April 18.

Last week, China Taisan said in response to SGX queries that its current auditors are "concerned on the valuation of additional PPE in the amount of 160 million yuan occurred in FY2017".

The SGX has asked that the special auditors review the circumstances surrounding the customer claims for defective goods in 2014, the acquisition and subsequent impairment of PPE in 2015 and 2016, and the write-off of VAT recoverables in 2015.

The SGX has also required that China Taisan appoint a second suitable independent director, resident in Singapore.

The company has until June 30 to comply.

The SGX has also required that China Taisan appoint a second suitable independent director, resident in Singapore.

A version of this article appeared in the print edition of The Straits Times on June 09, 2018, with the headline 'SGX calls for cash audit of China Taisan'. Print Edition | Subscribe