Senshin Paper Group (00731) announced that the internal control consultant has published the interim internal control report dated 18 October 2021 and the final internal control report dated 13 December 2021, which sets out the overall results of the internal control review; Deficiencies identified in the internal control review; and recommendations to the company. The final internal control report is a follow-up to the corrective measures taken by the company and Yuantong Paper since the issuance of the interim internal control report.
The interim internal control report pointed out that the Company and Yuantong Paper already have a sound internal control system in some aspects, but the internal control system in other aspects needs to be further improved. It was also noted that the implementation of the internal control system was not carried out in a well-documented manner, resulting in internal control risks in the areas of organizational structure, human resources, capital and asset monitoring. A number of low- to high-priority weaknesses were identified during the review.
The Company and the current management of Yuantong Paper have taken actions and measures to correct the identified weaknesses in internal control in accordance with the recommendations of the interim internal control report. The Internal Control Consultants have conducted a follow-up review of the rectification work up to 15 November 2021 and issued a final internal control report. According to the final internal control report, the identified internal control deficiencies have been corrected, and the overall risk is now controlled by low priority vulnerabilities.
In addition, the company's shares continue to be suspended.
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