Trek 2000

What's wrong with the company?

(not vested)

Trek 2000's auditors lodge report with ACRA
28 Apr 2016 09:00
By Melissa Tan

THE auditors of thumb drive maker Trek 2000 International have lodged a report with the Accounting and Corporate Regulatory Authority (ACRA) that may be related to documentation deficiencies at Trek, the company said in a Singapore Exchange (SGX) filing on Tuesday.

It added that it had not seen the report and would convert its current trading halt into a voluntary suspension.

Trek 2000 had said in March that its auditors had found documentation deficiencies related to some sale transactions between one of its subsidiaries and a customer. The total value of those transactions was about US$3.2 million.

On Tuesday, it said its auditors, Ernst Young (EY), informed it on April 21 that EY had made a report to ACRA on issues it found while auditing Trek 2000's financial statements for the year ended Dec 31, 2015.

Trek 2000 was "not privy" to the report and the report "was not made available" to it, it said.
...
Source: Business Times

One of their foreign subsidiaries had sales of US3.2m$, but the amount received was audited to be around 2.65m$ and it was received under different names as compared to the name that the sale was made to.

Also had IPT transaction with another company called T-Data which is a shop selling electronic items. Shopowner is the nephew of the CEO iirc.

In this particular case, E & Y, probably backed by its senior local partners, is showing great guts and must feel strongly that the firm as TREK 2000's external auditors, is doing the right thing to report on the company to the authorities, backed by whatever findings the firm has unravelled in their audit work.

It is very rare & strange that an external auditor would choose this path to 'complain' to Acra instead of discussing or consulting with the management first. So not seeing eye-to-eye with the client? Unless their position to continue as auditor is being threatened and that is why they are taking 'revenge'? Of course this is just my wild guess.

(28-04-2016, 11:44 PM)hh488 Wrote: It is very rare & strange that an external auditor would choose this path to 'complain' to Acra instead of discussing or consulting with the management first.  So not seeing eye-to-eye with the client?  Unless their position to continue as auditor is being threatened and that is why they are taking 'revenge'?  Of course this is just my wild guess.

I reckon, the "consultation" with the management had been done, but no corrective action was conceived. I checked, the management has announced similar issues via SGX before auditor complained to ACRA.

(not vested)

Almost invested into this 2-3 years ago, lucky me then =)

ANNOUNCEMENT RELATING TO:-
(A) INVESTIGATIONS BY COMMERCIAL AFFAIRS DEPARTMENT AGAINST THE CHIEF FINANCIAL OFFICER AND EXECUTIVE DIRECTOR; AND
(B) ORDER BY COMMERCIAL AFFAIRS DEPARTMENT TO COMPANY FOR PROVISION OF DOCUMENTS AND INFORMATION
http://infopub.sgx.com/FileOpen/Trek%202...eID=406537

Not vested

FY2016
http://infopub.sgx.com/FileOpen/Trek%20-...eID=413188

I wonder when the suspension on Trek is ever going to be lifted. What is the problem that is taking them so long to settle?
Looks like another lemon. Sigh....

forensic-accountant-rsm-finds-%E2%80%99round-tripping%E2%80%99-deals-trek-2000-accounts
https://www.theedgesingapore.com/forensi...0-accounts