Sijia - cannot sell ..what to do now???
I think last news good enought. So I think they waiting for good moment to begin trating again
24/06/2013
Sijia Group Company Limited (01863) has announced the findings of the independent investigation undertaken by ADNA.
Regarding inability to verify the value-added tax invoices through online verification system, ANDA:
1. checked (i) the confirmation issued by the tax authority; and (ii) the relevant value-added tax invoices of the relevant sales and purchases transactions. ANDA found that there are no discrepancies between those documents and the sales and purchase records of Fujian Sijia;
2. interviewed the relevant personnel of the tax authority to understand the situation. According to the interviewed personnel, the relevant sales and purchases invoices are true based on the record of the tax authority. Although such personnel declined to provide feedback on the operation of the online verification system, she advised that such system was independent from the official system she uses; and
3. interviewed the relevant personnel of certain involved customers and suppliers to understand the situation. According to those interviewed personnels, the information in relation to the relevant sales and purchases transactions are correct.
Regarding inability to verify the bank accounts of customers and suppliers, ANDA:
1. checked (i) the relevant bank account closing forms; and (ii) the relevant bank advices of the involved receipt and payment transactions. ANDA found that there are no discrepancies between those documents and the receipt and payment records of Fujian Sijia;
2. interviewed the relevant personnel of certain involved customers and suppliers to understand the situation. According to those interviewed personnels, the information regarding the relevant receipt and payment transactions are correct; and
3. checked the relevant bank payments and receipts through the internet banking system of the relevant bank. ANDA found that the dates, amounts of bank receipts and payments, and the names of payees and recipients of the involved transactions are consistent with the records of Fujian Sijia.
Regarding inaccurate information of the bank slips and the bank statements, ANDA:
1. checked (i) the confirmations issued by relevant bank; and (ii) the relevant bank slips and bank statements. ANDA found that there are no discrepancies between those documents and the internal records of Fujian Sijia;
2. interviewed the representative of the bank who confirmed that the inconsistency between the two bank statements of Fujian Sijia obtained by EY was caused by the adjustment made by the local branch of the bank for the total bank deposit (which is a key performance indicator) of that local branch; and that the bank balance of Fujian Sijia conformed with the internal record of that company. In addition, while having no clue of why the 2 sample payment transactions showed inconsistent transaction codes appearing on the bank slips and the bank statements, the personnel of the bank has advised ANDA that the bank code stated in 7 bank slips relating to the sample transactions do not comply with the official coding requirements may possibly be caused by clerical error as the bank code on the bank slips could be manually inputted;
3. interviewed the relevant personnel of certain involved customers and suppliers to understand the situation. According to those interviewed personnels, the information regarding the relevant receipt and payment transactions are correct; and
4. checked the relevant bank balance, payments and receipts through the internet banking system of relevant bank. ANDA found that the dates, amounts of bank balance, receipts and payments, and the names of payees and recipients of the involved transactions are consistent with the records of Fujian Sijia.
Based on the aforesaid findings of ANDA, Sijia Group's board is of the view that the observations (certain inconsistencies observed by Ernst & Young during the performance of pre-final audit of Sijia Group for the year ended 31 December 2012) are not substantiated.
