Securities Investors Association of Singapore (Sias) president David Gerald told The Straits Times: “Investors in China Sky will be wondering what is their fate, what is happening. It’s not an exaggeration to say that the shareholders will be nervous about why the company is resisting the special audit.”
The Singapore listed but China based firm has been engaged in a war of words with Singapore Exchange (SGX) over a directive by SGX to engage a special auditor to look into the financial affairs of the company. China Sky defended its position by saying that SGX has not given sufficient justification for a special audit, and that the special audit would be costly and be disruptive for the operations of the company.
The company’s annual report for 2009 stated that there were no interested person transactions during that year. Then, in the following year’s annual report, it stated that there were such transactions. Last year, the company revised substantially downwards the amounts involved in the interested person transactions. It then said that the amounts involved were too small to require disclosure.
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