China Sky One Medical (CSKI) Why don't the numbers agree?
The State Administration for Industry and Commerce promulgates the regulations that govern the operation of a foreign owned company in the People's Republic of China. A non-domestic limited liability stock company is referred to as a Foreign Investment Enterprise, an FIE, and is required to maintain its business license by filing annual reports with the regional offices of the SAIC. Harbin TDR is classified as a FIE and they are required to submit their annual reports in Harbin City.
An excerpt from a client advisory from Stephenson Harwood & Lo......
8. Annual Inspection
Under PRC law,12 all FIEs established in the PRC must
attend to, and pass an annual inspection every year. The
FIE must submit to its original registration authority (1) an
annual examination report, (2) an annual balance sheet
and (3) a profit and loss statement and (4) a duplicate
copy of its Business Licence.
The annual financial reports must be audited by PRC approved professionals and bear the Chop (Chinese Corporate Seal) of both the company and the auditor.
