Date: December 22, 2011
SIAS has serious concerns over the recent developments in China Sky Chemical Fibre Co Ltd (the Company). The Singapore Exchange (SGX) on 16th Nov 2011 issued a directive under the Listing Rules to appoint a Special Auditor relating to various issues pertaining to interested party transactions between the Company and the Audit Committee Chairman, the aborted acquisition and development of land in China and repair and maintenance costs. SIAS is perturbed to learn from SGX’s statement dated 16th Dec 2011 that queries from SGX to the Company have been met with contradictory statements and disclosures which were not substantiated.
SIAS calls on the Company to immediate comply with the directive to appoint a Special Auditor under the Listing Rules so that the trading suspension can be lifted. The directive clearly appears to SIAS as a reasonable request and in the interest of all shareholders.
SIAS calls upon the Company and its Director to comply with Listing Rules and adhere to corporate governance standards in Singapore which is the least that shareholders expect from the Company and its Directors.