SGX RegCo reports Tee Intl to authorities over late disclosures

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Singapore Exchange Regulation (SGX RegCo) said Thursday it has begun an investigation of potential listing rule breaches by Tee International, and has reported the matter to authorities for potential offences under the Securities and Futures Act.

The concerns related to the company’s announcements in June 2021 stating it had received 121 letters of demand and overdue claims from various creditors between July 2020 and June 2021 amounting to around S$38.8 million, SGX RegCo said in a filing to the exchange.

The filing said Tee International stated the claims were not announced earlier as it was negotiating with the creditors and the amount claimed by each creditor wasn’t material.

SGX RegCo said, however, that the aggregated claims accounted for at least 10 percent of the group’s net asset value and cash and cash equivalent balances, making the disclosure material information which could impact the group’s ability to operate as a going concern.

“We expect SGX-listed issuers to put in place proper procedures to monitor the claims received from creditors, escalate to the board when the claims are material to the issuer and make the appropriate
announcements,” SGX RegCo said.

In January, Tee International’s auditors issued a disclaimer of opinion on its financial statements for the 16-month period ended 30 September 2021, and cited material uncertainties over its ability to continue as a going concern.

Foo Kon Tan LLP, the independent auditor, had said the disclaimer of opinion was in part due to the lack of updates from the Commercial Affairs Department (CAD) of the Singapore Police Force which could provide new information or findings to resolve the disclaimer of opinion on its report for the financial year ended 31 May 2020.

In the fiscal 2020 report, S$6.55 million of unauthorised remittances were cited over the previous year, which were repaid over two financial years, the auditor had said.

Read SGX RegCo’s statement.