Trek 2000 International

Shion

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Official Trek 2000 International discussion thread

Anyone has any idea on this company/stock ?

All I know it handles with IT products. I still have an old Trek thumbdrive, at least 10 years already :eek:

Price/Book Value 2.151
P/E Ratio 36.412
Dividend Yield 1.22%
EV/EBITDA 21.078
 
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chowck

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Don't quite understand this case. Why suspended for so long - almost 2 years & to-date don't know what offences the company has committed.:s11:
 

Shion

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Trek 2000 chairman, others involved in potential breaches of Singapore laws: forensic accountants

Trek 2000 chairman, others involved in potential breaches of Singapore laws: forensic accountants

http://www.straitstimes.com/busines...s-involved-in-potential-breaches-of-singapore

SINGAPORE - Forensic accountants from RSM Corporate Advisory have found potential breaches of various Singapore laws at Trek 2000 International and the involvement of current and former senior company officers, including current chairman and chief executive Henn Tan.

Among other things, RSM raised issues involving possible round-tripping transactions, fabrication and alteration of transaction documents, as well as possible fraudulent and erroneous claims under the Productivity and Innovation Credit (PIC) tax scheme.

RSM found that certain sales to two companies, T-Data Systems and S-Com Solutions (Hong Kong), were not properly justified, and round-tripping transactions caused overstatements of revenue, costs of sales and profits.

Computer servers that were obtained for free were also sold to T-Data for US$400,000, and in turn sold to a subsidiary of Trek 2000 at the same price, and claims were made under the PIC scheme for the purchase of the servers.

Chairman Mr Tan, Gurcharan Singh (former CFO), Poo Teng Pin (former group director of R&D) and Foo Kok Wah (president of operations, sales and customised solutions division) were involved, RSM said in an exchange filing late on Monday night (April 23).

RSM also found "serious doubt" on the authenticity of more than US$10 million of sales to certain entities that either shared an address with Trek's office in Hong Kong or may simply not exist. Mr Poo, Hengky Gunawan (manager in the purchasing department) and Mr Singh's names were found on documents related to those transactions, and Mr Tan and Mr Foo are related to the source of those sales.

In addition, crucial facts relating to a US$3.2 million sale of UM1G chips to Indian sign manufacturer Colite Technology could not be established as no one appears to have knowledge or was able to provide the details, RSM said. These include the actual composition of the UM1G chips, how and when the UM1G chips were delivered to Colite, and whether the goods were even delivered at all.

Bank advices amounting to US$250,000 and US$2.4 million received respectively from Mr Tan and S-Com HK were also digitally altered by Mr Hengky at Mr Singh's instructions, with strong indications that alterations were performed to deceive and mislead the auditors, RSM said. Emily Chin (sales coordinator of Trek Technology HK Co) and Shew Paul Waie (head of R&D) were also involved in this transaction with Colite.

RSM's review also found that the company did not exercise sufficient diligence and care in the recording of its inventory of embedded secured digital devices, causing the stock quantity and value to be inaccurately reflected in its books.

Separately, sums totalling S$523,600 and US$18,387 were paid to Mr Tan and T-Data for four purported purchases from Key Asic. Former CEO of Key Asic, JP Peng confirmed receipt of the sums. However, RSM obtained confirmation from Key Asic that it did not have records of these four invoices and did not issue them.

According to RSM, Mr Tan and Mr Singh produced "new but questionable evidence" that were inconsistent and contradictory. Claims under the PIC scheme and allowable deductions for R&D expenses had been made based on the four purported purchases.

Furthermore, invoices and credit notes to a major supplier of the group were digitally fabricated, RSM found. These alterations of accounting entries were carried out "for the purpose of recording or increasing the group's income, manipulating the classification of purchases and recording fictitious intangible assets".

RSM's review disclosed that the supplier's invoices were inflated between 1.75 and 5 per cent. There was also an instance where the percentage was a staggering 44.55 per cent. RSM found 141 invoices between 2011 and 2015 from the supplier to Trek Singapore, with the total amount inflated standing at US$5.5 million before GST. As a result, the group could have overclaimed GST input tax either by receiving higher GST refunds or making less GST payments than they should, RSM said.

Lastly, RSM noted that 19 patents relating to FluCard, a wireless SD card used primarily with digital cameras, were registered under T-Data's ownership. RSM's view is that these patents should be registered under Trek 2000 International as there had been no contribution from T-Data as the patent owner. Mr Tan and Mr Singh were involved parties in this case.

On Feb 25, 2016, Trek 2000 International's directors announced that it had through the company's audit committee (AC), discovered certain interested person transactions (IPTs) entered into by the firm with T-Data Systems (S) from Nov 27, 2007 to March 26, 2014. Following this, the AC appointed TSMP Law Corporation on April 4, 2016 to conduct an independent inquiry.

On April 26, 2016, the firm said that it was informed by its auditors Ernst & Young LLP that a report has been submitted to the Accounting and Corporate Regulatory Authority (Acra) on matters that had come to their attention in the course of auditing the group's financial statements for the year ended Dec 31, 2015.

Subsequently, the company received a notice from the Commercial Affairs Department of the Singapore Police Force on May 25, 2016 that it was conducting an investigation into certain transactions undertaken by the firm.

In June 2016, Trek announced that TSMP had presented its preliminary findings to the AC and highlighted that a full review on the group's IPTs would require analysis from a forensic financial perspective. The AC accepted this recommendation and RSM Corporate Advisory was appointed on June 8, 2016 to conduct an inquiry. Among other things, the report focused on the group's suspicious transactions announced by the company from May 2016 to September 2017. The findings were released ahead of Trek's annual general meeting on Tuesday.

At 9am on Tuesday, Trek 2000 International requested a trading halt of its shares. The counter last traded 2.17 per cent lower to close at 22.5 Singapore cents on Monday.
 

Shion

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Trek 2000 founder and thumb drive inventor Henn Tan, 3 others charged with cheating, falsifying acco

Trek 2000 founder and thumb drive inventor Henn Tan, 3 others charged with cheating, falsifying accounts

https://www.straitstimes.com/busine...drive-inventor-henn-tan-3-others-charged-with

SINGAPORE - Trek 2000 International's chairman emeritus and thumb drive inventor Henn Tan and three former officers were on Wednesday (Sept 25) each slapped with three to 16 charges, including cheating and falsification of accounts.

Tan, who founded the company, stepped down in May 2018 as chief executive of the mainboard-listed information technology solutions provider. He faces a total of 15 charges that accuse him of committing offences as far back as 2006.

The 63-year-old was alleged to have committed seven counts of falsification of entries including those pertaining to revenue and net profit in Trek 2000's FY2015 financial statements as well as recording fictitious sales and purchases respectively in 2013 and 2014. This included a conspiracy with then chief financial officer Gurcharan Singh between 2006 and 2011 to create false entries pertaining to licensing income of the group in Trek 2000's financial statements for those years.

He had also allegedly engaged in a conspiracy with Singh, former executive director Poo Teng Pin and former division president Foo Kok Wah to deceive external auditors Ernst & Young that the FY2015 financial statements had been properly drawn up.

Besides these, Tan has a charge of alleged forgery of invoices and delivery orders in 2013 to deceive E&Y into believing that the FY2014 financial statements were in regulatory compliance and induced the auditors to issue an unqualified opinion.

Tan also faces a total of six charges for allegedly "recklessly" failing to make immediate announcements on a total of 47 interested personal transactions in 2010-2013 when there were sales to its subsidiaries.

The 63-year-old Singh faces a total of 16 charges similar to Tan's, while Foo and Poo have been charged with three and eight offences respectively.

If convicted, the four men face the following punishment:

• For each charge of forgery for the purpose of cheating, imprisonment for a term which may extend to 10 years and a possible fine;

• For each charge involving the falsification of accounts, imprisonment for a term which may extend to 10 years, or with fine, or both;

• For an offence of cheating, imprisonment for a term which may extend to nine months, or with fine, or both; and

• For each charge involving breach of disclosure obligations, imprisonment for a term up to seven years, or a fine of up to $250,000, or both.

Their cases will be mentioned on Nov 6 and each accused was granted bail of $300,000 or $400,000.

Trek 2000 was trading flat at 8.1 cents on Wednesday morning.
 
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