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Fire at China Paper
When I read that a fire at China Paper had destroyed their financial records, I started asking myself many questions. So coincidental, the fire can just burn the financial records and the rest of the premise is unaffected??
So who put out the fire? The fire-brigade or their own staff? If it takes them one hour to put out the fire, won’t the affected area be bigger? Shouldn’t there be people working on a weekday afternoon who should be able to spot the fire before it develops?
Fire destroys China Paper’s latest financial records (Business Times)
For those who do not know, China Paper is a S-chip trading on our stock exchange. The company had raised an extra S$36 million in 2011 and S$32 million this year through rights issue. Pity those investors, doubt they will get much money back.
Last year, we also had Sino Techfibre having their financial records destroyed in a fire. In 2009, China Sun Bio-chem lost their financial records when a truck that was transporting the documents was stolen.
S-Chips are a big joke, and rightfully so.
The full text of the announcement of the fire is as follows:
The Board of Directors of the Company (“Board”) wishes to announce that in the late afternoon of 13 December 2012, a fire broke out at its office in South Part, Jianshe Road, Cangshan County, Linyi City, Shandong Province, PRC.
The Board wishes to inform that there were no casualties caused by the fire and the fire took approximately one hour to be put out. The Company has reported the incident to the local authorities, who have conducted the necessary investigations. According to the investigations carried out by the local authorities, the fire was caused by an electrical short circuit in the office premises.
As the Company’s financial records were kept in the affected office premise where the fire occurred, the financial records for FY2011 were destroyed by the fire, whereas the financial records for the first eight months of 2012 were partially damaged and the financial records for September to November 2012 were severely damaged.
The Company has started to communicate with its customers and suppliers in order to obtain copies of the invoices and other transactional records that were damaged, so as to reconstruct the financial records. The Company estimates that it will take approximately four to six months to reconstruct the financial records. As such, the Company has informed its auditors of the situation and will discuss a possible delay to the annual audit for FY2012.
Except for some physical damage to the affected office premise there is no other damage to production facilities of the Company.
Further disclosures with regard to the incident will be made once the relevant information is available.
