QINGDAO, PRC and ROCKVILLE, Md., Aug. 18 /Xinhua-PRNewswire/ -- Synutra International, Inc. (Nasdaq: SYUT) ("Synutra"), one of China's leading manufacturers of dairy-based nutritional products for infants, children and adults, today filed a current report on Form 8-K with the U.S. Securities & Exchange Commission which states that Synutra will likely need to restate its historical financial statements for fiscal 2007 and that those financial statements should no longer be relied upon. As stated in the Form 8-K, during the preparation of Synutra's quarterly report for the fiscal quarter ended June 30, 2007, Synutra identified certain issues with respect to its historical financial statements for fiscal 2007. Since Synutra's assessment of the anticipated restatement is ongoing, the company has not determined the exact scope of the restatement. The specific issues being assessed include (i) the reclassification of certain line items of the financial statements as of and for the fiscal year ended March 31, 2007; (ii) the accounting treatment of a certain government grant; (iii) the correction of cut-off errors in recording certain expenses; (iv) whether a related party of the registrant, which was not consolidated in the 2007 Annual Financials, should be consolidated in the anticipated restatement pursuant to Financial Accounting Standards Board Interpretation No. 46 (Revised 2003) "Consolidation of Variable Interest Entities"; and (v) corresponding changes in the quarterly reports on Form 10-Q for each fiscal quarter ended June 30, 2006, September 30, 2006 and December 31, 2006.
Synutra intends to file, as soon as possible, (i) an amended annual report on Form 10-K with restated financial statements as of and for the year ended March 31, 2007; (ii) amended quarterly reports on Form 10-Q for each fiscal quarter ended June 30, 2006, September 30, 2006 and December 31, 2006; and (iii) a quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2007.
About Synutra International, Inc.
Synutra operates eight subsidiaries developing, producing, distributing and selling dairy-based nutritional products across the People's Republic of China. It offers its products for infants, children, adults and pregnant women and nursing mothers under the brand series of "Super," "U-Smart" and "U-Strong." The Group's extensive sales network covers 24 provinces, 264 cities and more than 1320 counties throughout China. For more information, please contact Weiguo Zhang of Synutra, Inc. (301 840 3888, wzhang@synutra.com), Brian Rafferty of Taylor Rafferty (212 889 4350, synutra@taylor-rafferty.com) or visit: www.synutra.com.
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