Guangzhao Industrial Forest Biotechnology Group Limited uses a range of scientific techniques to produce and sell fast-growing forestry products.
The problems began when 3 independent directors quit in March 2009, citing differences in opinion with the management. The external auditor expressed a ‘disclaimer of opinion” on the company’s financial statements. There was insufficient information to support the carrying amount of the company’s land-use rights, the land development costs as well as the trade receivables reported. The external auditors also expressed doubts on the status of the company as a going concern. They had to address numerous discrepancies between unaudited accounts and audited accounts several times
Guangzhao Industrial Forest Biotechnology: Annual Report, 15 Apr 2008