General Announcement::AUDIT PROGRESS UPDATE
Issuer & Securities
CHINA ENVIRONMENT LTD.
CHINA ENVIRONMENT LTD. - SG1Y42946521 - 5OU
Date &Time of Broadcast
Announcement Sub Title
AUDIT PROGRESS UPDATE
Submitted By (Co./ Ind. Name)
Corporate Affairs Manager
Description (Please provide a detailed description of the event in the box below)
The Board of Directors of China Environment Ltd ( the Company ) wishes to announce that the following issues has cropped up in the Company s wholly-owned subsidiaries, Anhui Dongyuan Environmental Protection Co., Ltd ( AHDY ) and Xiamen Gongyuan Environmental Protection Technology Co; Ltd ( XMGY ) during the audit for FY2016 and FY2017.
Issue at AHDY:
The Company Auditors and Singapore management believe that there may have been possible misappropriation of rental income monies at AHDY. The Singapore management has subsequently requested that the Anhui PRC management hand over the AHDY company seals entrusted to them pending the resolution of the possible misappropriated rental income monies issue.
The Anhui PRC management has refused to hand over the AHDY company seals and escorted Singapore management off AHDY premises. The Company is in the process of resolving this dispute amicably before taking any further action.
Issue at XMGY:
The ex-employees at XMGY have refused to provide the accounting records for XMGY or hand over the XMGY company seals pending the resolution of their unpaid salaries and retrenchment benefits.
The Company will explore alternatives to mitigate this audit issue.
BY ORDER OF THE BOARD
China Environment Ltd.
11 May 2018
Total size =89K