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Trek 2000 to revise FY2019 profit after tax to loss
EMBATTLED Trek 2000 International will be revising its profit after tax for FY2019 to a loss after tax due to material audit adjustments, the company said in a bourse filing on Thursday.
It had announced on Feb 28 a net profit of US$54,000 for FY2019 ended December, on the back of US$25 million in revenue.
The audit adjustments include further tax provision for a certain tax concession under consideration, fair-value adjustments on unquoted investments and other smaller adjustments. These are in line with the conservative accounting approach the company is adopting, Trek 2000 said.
In September last year, TREK 2000’s founder Henn Tan and three former officers each faced charges, including those for falsification and cheating independent auditors into believing that the company's financial statements had been properly drawn up.
Further detail of the variances between Trek 2000’s preliminary unaudited full-year results announcement and audited financial results will be disclosed once the audit is completed.
Shares of Trek 2000 closed flat at S$0.055 on Thursday.