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sheet did you draw the Did you before filing this balanc attention of the directors to this alteration which had been made without their authority?
Surely.
No.
Was it discussed at any meeting ?
Any record of it ? No, they were satisfied because they had not signed it.
Do you agree with me that the statement as to capital in the printed balance sheet is absolutely misleading end incorrect? Judge:- You had better have the balance sheet identified. That is, the balance sheet as eventually printed.
Judge:- This is the printed balance sheet as it was published ?
Yes, My Lord (Ex.NIB`7).
I
Do you agree that the statement as to capital in the printed balance sheet was absolutely inaccurate and misleading?
would, had my auditor not said it was customary.
You agree it was misleading and inaccurate ? I don't.
You still think it is correct? I am assured by the auditor that it is correct with Chinese firms.
Judge:- This is a British Company ? to the British Consul in Canton.
It was Chinese according
Judge:- Is not this Company registered under the Ordinance ? Yes, My Lord - many Chinese companies register under the British
Ordinance.
I will go back to that typewritten balance sheet (Ex. NIB 8). That is the typewritten draft which was put in an approved of by a meeting of directors and Mr. Brewer says that he agreed that, My Lord.
The draft was drawn up by Who actually prepared this, NIB 8 ? Mr.Li Tung. The actual typing out was done by my wife on my instructions. Kr.Li Tung gave me a draft showing how it ought to be done, and I followed his directions.
What data has Mr.Li Tung to prepare his balance sheet with ? He had three balance sheets. These three balance sheets were
personally checked by me, and guaranteed by me.
Yes, and one
Was that for the Shekki branch one of them ? for Hong Kong, and there is the Head Office one (Ex. NIB 9). This is the balance sheet I got up myself for the benefit of Messrs Lowe Bingham & Matthews when they came, bacause they had three typewritten ones and I got this one up to show it clearly to them.
You accept
Judge:- Let us get the balance sheet first of all. these three documents here (Ex.NIB 9) as balance sheets of the Company, Mr.Brewer ? Yes, and for which I accept responsibility.
Judge:- Now, you are dealing with another, what is that document ? C.R&- I am told it is a trial balance prepared
As a matter of for the benefit of the voluntary liquidators.
fact, that last document is in point of fact, an amalgamation
of these three balance sheets. This was not done until May of
this year.
8.