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Trek 2000 lists documentation deficiencies in relation to application for time extension
DOCUMENTATION deficiencies have been found in relation to certain sale transactions between one of Trek 2000 International's subsidiaries and a customer, said Trek 2000 on Monday, in an update to a statement issued in the early hours of March 1, in which the company had stated it is seeking an application for a time extension to announce its financial results for the year ended Dec 31, 2015.
Specifically, external auditors have observed and highlighted that there are discrepancies in the identity of the customer in the transaction between the company's sales system and books; delivery orders acknowledged by the customer and the airway bill relating to the shipment of the goods; and identity of the payor as stated on certain bank transfer notices showing payments of approximately US$2.65 million made by the customer to the group. While the US$2.65 million has been received by the group, the external auditor raised concerns as to the source and origin of the bank transfer notices.
The aggregate value of the sale transactions is about US$3.2 million.
"The company's external auditors are in the midst of performing further audit works with regard to the above which involves, amongst others, a further examination of the accounting records and sales documentation. This is with a view to validating the proper recording of the transaction(s) with the customer in question and the accounting records of the company," said Trek 2000.
It added that further announcements will be made when material developments emerge. Shareholders and investors are advised to exercise caution when dealing in shares of the company.