The Singapore Exchange has ordered China Milk Products Group to appoint a special auditor immediately to investigate the affairs of the company and report to the company’s audit committee and the exchange.

The order by SGX comes after China Milk failed to submit the findings of a cash audit by March 15 despite repeated reminders. The company has also not presented its interim financial statements for the quarter ended Dec 31, despite a seven-week extension of time which expires today.

SGX had ordered the audit after China Milk announced on Feb 12 that it was in default on its convertible bonds as it was unable to meet repayment obligations amounting to US$170.56 million ($239 million). The company had earlier attributed the delay in repayment to the process of obtaining approval for the remittance of funds out of China.

The company has agreed to cooperate fully with the special auditor to be appointed.