XI'AN, China, Feb. 4, 2011 /PRNewswire/ -- China Power Equipment, Inc. ("China Power Equipment" or "the Company", OTC: CPQQ), the manufacturer of a new generation of energy saving electric transformers and transformer cores in the People's Republic of China, today announced that it has dismissed its principal independent accountant, Acquavella, Chiarelli, Shuster, Berkower & Co., LLP ("ACSB"). The decision to dismiss was approved by the Audit Committee of the Company's Board of Directors on January 31, 2011.
On January 31, 2011, the Company engaged Mazars CPA Limited ("Mazars") as its new principal independent accountants, effective immediately. The decision to engage Mazars as the Company's principal independent accountants was approved by the Audit Committee of the Company's Board of Directors on January 31, 2011. During the period from January 1, 2009 through December 31, 2010, and through the date of the Mazars' engagement, the Company did not consult with Mazars regarding any of the matters or events set forth in Item 304(a)(2)(i) and (ii) of Regulation S-K.
Mazars is a founding member of Praxity, a global alliance of independent firms. Praxity ranks among the top 10 of global accounting organizations in size and global billings.
The decision to change auditors was not the result of any disagreement between the Company and ACSB on any matter of accounting practices, financial statement disclosure, or auditing scope or procedure.
Mr. Yongxing (Henry) Song, Chairman and Chief Executive Officer of China Power, said, "In our selection process, which was very thorough and disciplined, we were especially impressed with Mazars' depth in its due diligence process, its understanding of our business, and the excellence of its auditing as an international professional firm. For more than a decade, Mazars has built a strong presence in China and has a proven ability to bridge Chinese accounting and regulations with U.S. GAAP accounting and reporting.
"We look forward to benefiting from Mazars' highly professional service and international experience. China Power Equipment is deeply committed to good transparency and the highest standards of corporate governance. We believe Mazars will provide great auditing to help us achieve our very high standards."
Mazars is an international, independent, and integrated organization specializing in audit, accounting, tax, and advisory services. Mazars is a founding member of Praxity, a global alliance of independent firms. Praxity ranks among the top 10 of global accounting organizations in size and global billings. Mazars is one of the world's largest accounting firms often ranked in the top 5 to 10 largest national audit firms in the countries in which it operates. It has been established in China for more than a decade and has many professionals who are expert in Chinese regulations and accounting and in U.S. Generally Accepted Accounting Principles and International Financial Reporting Standards. Mazars relies on the skills of 13,000 professionals in the 61 countries who make up its integrated partnership in Europe, Africa, the Middle East, Asia Pacific, North America, Latin America, and the Caribbean. Mazars also has correspondents and joint ventures in 21 additional countries. In the Asia-Pacific region, Mazars has 24 offices in 13 countries with more than 2,000 highly skilled and dedicated professionals, including more than 60 local and international partners, serving a wide range of clients that include large international groups and large local companies, as well as bilateral and multilateral aid agencies. For more information on Mazars, please visit www.mazars.com.
About China Power Equipment, Inc.
China Power Equipment, Inc., is a U.S. corporation, which through its wholly-owned subsidiary, An Sen (Xi'an) Power Science & Technology Co., Ltd. and its affiliated operating company, Xi'an Amorphous Zhongxi Co., Ltd., designs, manufactures, and distributes amorphous alloy transformer cores and amorphous alloy core electricity transformers in the People's Republic of China. The company currently manufactures 59 different products, primarily amorphous alloy cores and amorphous alloy core transformers.
For additional information about China Power Equipment please visit its website at www.chinapower-equipment.com. For more information, please contact:
SOURCE China Power Equipment, Inc.