The Group’s business was the production of preserved and processed food products, peanut oil, beverages and freeze-dried food products. The Group was listed in Sep 2004 on the SGX, and on Feb 2007, the Company requested for its Shares to be suspended. In Dec 2006, the Company issued a profit warning stating as a result of the discovery/disposal of damaged and slow moving goods. Rabobank demanded payment of US$5.2m on or before 11 Jan 2007.
In Feb 2007, share trading was halted because its external auditors (RSM Chio Lim) had brought certain matters to the attention of the Audit Committee. Meanwhile, Rabobank filed a winding up application against the Company on 22 Feb 2007. In Mar 2007, the Company announced that its external auditors had on 5 Feb 2007 completed a preliminary report on certain likely irregularities with respect to the financial matters of the Group and issued an audit report disclaimer for 2006.The irregularities included cash withdrawals without proper documentation, unrecorded loans and guarantees, cash purchases that could not be verified, inability to verify inventory written off, inability to verify significant cash sales.
Zhongguo Jilong Limited: Scheme Document, 28 Aug 2009
Zhongguo Jilong Limited: Annual Report 2004