Basic Financial Systems Sample Clauses

Basic Financial Systems. (a) The fiscal year of the Target Company shall be a calendar year from January 1 to December 31. (b) The Target Company shall use RMB as the recording currency in its financial and accounting work. Where the currency used for recording of cash, bank’s deposits, foreign loans and claims, debts, income and payment is different from the recording currency, such cash, bank’s deposits, foreign loans and claims, debts, income and payment shall be recorded in the actual receipt and payment currency. The exchange gains and losses arising out of exchange rate margin shall be handled in accordance with the foreign exchange transaction accounting processing methods issued by the Ministry of Finance, the Administration for Foreign Exchange and other governmental authority of the PRC. (c) All vouchers, books and statements of the Target Company shall be properly kept by dedicated person, and may not be altered or destroyed by anyone at will. (d) The Board of Directors shall engage an accounting firm registered in the PRC to be responsible for auditing and examining the financial and accounting documents of the Target Company. The audit results of the auditor shall be reported to the Board of Directors and the general manager.