Universal Resource seeks legal advice on irregularities in special audit report

UNIVERSAL Resource and Services said in a regulatory filing on Tuesday that it is seeking legal advice to pursue losses after irregularities in the cash and bank balances of its Chinese subsidiary, Sky Petroleum Technology Development (Tianjin), surfaced in a special audit report. 

In the report, special auditors Moore Stephens had highlighted material discrepancies between Sky Tianjin's bank statements based on its records maintained in Singapore, and its bank statements extracted by Moore Stephens from the relevant banks in China. Its findings also indicated that the company and its management had questionable corporate governance practices and poor accounting practices

The independent working committee has since instructed the company's legal counsel to advise the company on the legal recourse it may have against all wrongdoers identified in the audit report. This is including, but not limited to, commencing civil actions to pursue the losses that the wrongdoers have brought on the company. 

"The independent working committee will continue to take all necessary actions in the best interests of the shareholders and the company, including further steps in relation to the special report," said Universal Resource in the filing. 

It added that its board takes a serious view of the potential breaches of laws and/or listing manual rules, and the independent working committee has since submitted the special audit report to the Singapore Police Force Commercial Affairs Department and the Accounting and Corporate Regulatory Authority, highlighting the offences that may have been committed.