'Non-existent trade receivables' enabled China Environment to understate loss by 340m yuan

Singapore

INDEPENDENT auditors of China Environment have found that a 339.9 million yuan (S$68.03 million) discrepancy in the company's audited full-year net loss for fiscal 2015 against its unaudited results, was mainly due to "non-existent trade receivables" from 2013 through 2015.

Independent auditors, RT LLP, noted in a disclaimer of opinion that net loss for the industrial waste gas treatment company for the 12 months ended Dec 31, 2015 should have been 450.8 million yuan, instead of the 110.9 million yuan announced previously.