香港聯合交易所有限公司
(香港交易及結算所有限公司全資附屬公司)
THE STOCK EXCHANGE OF HONG KONG LIMITED
(A wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited)
The Stock Exchange of Hong Kong Limited
CRITICISES:
(1) Mr Ke Jun Xiang (Mr Ke), executive director and chairman of CIL Holdings Limited (stock code: 479) (Company);
(2) Mr Fu Dao Ding (Mr Fu), executive director of the Company;
AND DIRECTS:
Each of Mr Ke and Mr Fu to attend training.
The Company recorded substantial impairments in its annual results for the year ended 30 June 2019 in relation to outstanding loans that it had granted. Due to an absence of documentation, amongst other things, the Company’s auditors were unable to obtain sufficient audit evidence to determine whether the allowance for impairment losses was appropriate, and issued a qualified opinion.
The Exchange found that Mr Ke and Mr Fu failed to (i) take sufficient steps to safeguard the interests of the Company, and (ii) ensure that the Company implemented and maintained adequate and effective internal controls in respect of its money lending business. The conduct of Mr Ke and Mr Fu adversely affected the Company’s ability to recover the outstanding loans.
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Directors are expected to establish and maintain adequate and effective internal control procedures, and exercise skill, care and diligence to safeguard the issuer’s interests. Particular care is required in relation to transactions involving substantial outflows or commitments of money.
Directors should ensure that proper records and documentation are kept.
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Ends