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Midas Holdings flags litigations, enforcement orders, among other irregularities during audit
MIDAS Holdings announced late on Thursday that it has uncovered several litigations, enforcement orders and court documents involving companies within the group during the course of audit and subsequent searches by the company's counsel.
Among these, there is an enforcement order filed against Jilin Midas Aluminium Industries, a wholly-owned subsidiary of the company incorporated in the PRC, for previously undisclosed liability in the amount of 30 million yuan (S$6.3 million).
About 12 million yuan out of unaudited ledger balances of 873 million yuan as at Dec 31, 2017 for its PRC subsidiaries was frozen by court orders, said the group.
The company said that it has also uncovered a number of previously undisclosed corporations related to certain group companies incorporated in the PRC, but said it cannot confirm information on the shareholdings and businesses on these corporations.
The board is in the process of appointing Xu Wei Dong, an independent non-executive director, as the legal representative for all its companies incorporated in the PRC, primarily as the custodian of legal seals to safeguard group assets.
All payments above 200,000 yuan need Dr Xu's approvals. Any payment that cumulatively exceeds 200,000 yuan in 30 days needs to be highlighted by the local CFOs to Dr Xu.
The company said that it is still in the midst of fact-finding, and the board will continue to assess whether the group can continue as a going concern. It will issue further announcements as and when there are any material developments in the matter, said the company.