Canadian company announced delay in filing annual financial statements because of its BVI subsidiary
The Canadian company Pearl River Holdings Limited reported on May 7, 2007 that it had been delayed in filing its Annual Audited Financial Statements for the year ended December 31, 2006. The reason for this was the lack of relevant information from the company’s wholly-owned subsidiary “Pearl River Plastics Limitedâ€, a company incorporated in the British Virgin Islands under International Business Companies Act.
The BVI-registered subsidiary is required to be audited and consolidated in the Annual Financial Statements of its parent company, Pearl River Holdings. The consolidated financial statements of Pearl River Plastics should include its own accounts and the accounts of its wholly owned subsidiaries, Rodman Plastics Co. Ltd. and Rodman Enterprises Ltd., operating in Hong Kong, and the account of its jointly controlled entity Guangzhou Rodman Plastics Co. Ltd., operating in China.
According to the statement, the BVI company experienced this delay of the audited consolidated financial statements due to staff shortages at the audit firm in Hong Kong.
The required filing date under applicable Canadian Securities law is April 30, 2007. The company has applied to the Canadian securities regulators requesting that a Management Cease Trade Order be issued. Now the company is working with its auditors to complete the audit of its annual financial statements, and is planning to file them by May 30, 2007. Pursuant to the Policy, if the company’s annual financial statements and related annual filings are not filed by June 30, 2007, it can be given a cease trade order.