CATALIST-LISTED Singapore Kitchen Equipment (SKE) said its chief executive officer Sally Chua and senior manager Charlene Koh were arrested by the Commercial Affairs Department (CAD), a day after disclosing the pair were not arrested.

 

Chua and Koh are being investigated for possible offences under section 417 of the Penal Code, which sets out penalties for cheating, SKE said in a bourse filing on Friday (Jun 16).

 

SKE on Wednesday said Chua and Koh have been released on bail after being interviewed by the CAD. It said the pair were being investigated under the Penal Code, but did not elaborate.

 

Upon queries raised by the Singapore Exchange, SKE on Thursday clarified that the pair have not been arrested, and that the interviews were scheduled interviews. It added, in response to queries, that their passports have been surrendered to the CAD.

 

The next day, SKE said Chua and Koh were actually arrested, after further clarification with the CAD.

 

The CAD probe arose from the outcome of a fact-finding review by law firm Rajah & Tann, involving eight payments amounting to S$1.4 million, SKE said.

 

The payments had been made by SKE&rsquo s majority shareholder, QKE Holdings, on behalf of the company&rsquo s main operating subsidiary, Q&rsquo son Kitchen Equipment (QKE).

 

Rajah & Tann&rsquo s review found that &ldquo certain employees of QKE had altered&hellip documents unilaterally, without instructions from, and knowledge and/or approval by the executive directors, including the CEO&rdquo .

 

Chua and Koh&rsquo s bail is scheduled to be renewed on Jun 28.

 

Trading in SKE shares has been suspended since August 2021.

SINGAPORE Kitchen Equipment : 5WG 0%(SKE) chief executive Sally Chua and senior manager Charlene Koh have been released on bail after being interviewed by the Commercial Affairs Department (CAD), the company disclosed in a Wednesday (Jun 14) bourse filing.

 

The interview was part of the CAD&rsquo s investigations into a potential offence &ldquo under the Penal Code 1871 of Singapore&rdquo , the company said without providing further details. It added that business will &ldquo continue as normal&rdquo .

 

The development comes about a year after the CAD had ordered SKE to produce documents to assist with an investigation.

 

The company had earlier conducted fact-finding reviews on eight transactions worth about S$1.4 million that majority shareholder QKE Holdings had made on behalf of its main operating subsidiary, Q&rsquo son Kitchen Equipment (QKE).

 

The documents CAD requested included a report prepared by Rajah & Tann dated Apr 25, 2022 relating to the eight transactions, invoices issued by Activa Media to QKE, and other relevant emails, bank statements and meeting minutes.

 

The Accounting and Corporate Regulatory Authority had also been investigating SKE for possible breaches of Section 402(1) of the Companies Act.

 

Trading in SKE shares has been suspended since August 2021.

 

INDEPENDENT auditor Foo Kon Tan has included a disclaimer of opinion over Singapore Kitchen Equipment&rsquo s (SKE) financial statements for the financial year ended Dec 31, 2021.

 

The auditor, in a report released late on Thursday (Jul 14), said it was not able to ascertain the existence, completeness and accuracy of the company&rsquo s recognised revenue for FY2021, among other issues highlighted.

 

In response to the auditor&rsquo s disclaimer of opinion, SKE&rsquo s board has said the group&rsquo s systems of internal controls may not be enough to address financial, operational, compliance and information technology controls and risk management systems during the year.

 

It has directed one of its internal auditors, Baker Tilly Consultancy Singapore, to conduct a follow-up review on the lapses identified in the company&rsquo s operating procedures and internal controls.

 

These lapses were highlighted in a finalised audit report by Baker Tilly and Rajah & Tann Singapore (R& T), both appointed on Jun 8 to review and enhance the company&rsquo s operating procedures and internal controls.

 

At the centre of scrutiny are 8 flagged transactions worth about S$1.4 million, which the company&rsquo s majority shareholder, QKE Holdings, had made on behalf of its main operating subsidiary, Q&rsquo son Kitchen Equipment.

 

Baker Tilly and R& T&rsquo s report were among the documents requested by the Commercial Affairs Department on Jun 29 to assist with a probe. A draft version of the same report was also handed over to the Accounting and Corporate Regulatory Authority for its investigation into possible falsification of a report.

 

In its report on SKE&rsquo s FY2021 financials, Foo Kon Tan said it was not able to obtain sufficient documentary evidence of the group&rsquo s sale of some S$20.2 million in kitchen equipment for the financial year. This includes delivery orders with dates of acknowledgement indicated by customers upon receiving and accepting the goods to show that revenue was recorded in the correct accounting period.

 

Additionally, the auditor was unable to determine whether the company&rsquo s opening balances as at Jan 1, 2021, were fairly stated.

 

It also could not determine the need for any adjustments in SKE&rsquo s FY2021 statements, due to &ldquo carry-forward effects&rdquo on the financial performance and cash flows for the year and the group&rsquo s closing balances of assets and liabilities.

 

These carry-forward effects refer to findings from the R& T and Baker Tilly audit, as well as previous findings from the audit of SKE&rsquo s FY2020 statements. The auditor at the time, BDO, also gave a disclaimer of opinion.

 

When it came to inventories, purchases and cost of sales, Foo Kon Tan said it was not able to obtain relevant supporting documents for the S$719,026 in spare parts recorded under the group&rsquo s inventories in its financial statements. It also could not ascertain the appropriateness of purchases, cost of sales and write-down on inventories recognised in profit or loss for FY2021, due to lack of sufficient documentary evidence.

 

Under trade receivables, Foo Kon Tan said it was unable to obtain sufficient appropriate audit evidence to ascertain the recoverability of the outstanding amounts and the expected credit losses on trade receivables. It also could not establish if the revenue was recorded in the correct accounting period &ndash which has a corresponding impact on trade receivables.

 

Trading in the company&rsquo s shares has been suspended since last August.

 

CATALIST-LISTED Singapore Kitchen Equipment (SKE), in a bourse filing on Monday (Jul 4), noted that it has been ordered by the Commercial Affairs Department (CAD) to produce various categories of documents to assist with an investigation into an offence.

 

The company had earlier conducted fact-finding reviews on 8 transactions worth about S$1.4 million that majority shareholder, QKE Holdings (QKEH), had made on behalf of its main operating subsidiary, Q&rsquo son Kitchen Equipment (QKE).

 

Among the documents CAD requested on Jun 29 include a report prepared by Rajah & Tann dated Apr 25, 2022 relating to the 8 transactions, invoices issued by Activa Media to QKE, as well as other relevant emails, bank statements and meeting minutes.

 

SKE said that the business and operations of the group are not affected by the investigations, and that it will make further announcements as it monitors the progress of the investigations.

 

The Accounting and Corporate Regulatory Authority has also been investigating SKE for possible breaches of Section 402(1) of the Companies Act.

 

The section makes it an offence for a company&rsquo s officer, with intent to deceive, to make, furnish, or knowingly and wilfully authorise or permit the making or furnishing of any false or misleading statement or report to a director, auditor, member, or debenture holder of the corporation, or to an auditor of its parent company.

 

THE former chief financial officer of Singapore Kitchen Equipment (SKE) Chow Mei Ling had unilaterally altered the company&rsquo s documents, or instructed such alterations, to &ldquo simplify&rdquo the external audit, lawyers involved in a fact-finding review of the Catalist-listed company have found.

 

At the centre of scrutiny are 8 flagged transactions worth about S$1.4 million, which the company&rsquo s majority shareholder, QKE Holdings (QKEH), had made on behalf of its main operating subsidiary, Q&rsquo son Kitchen Equipment.

 

Lawyers from Rajah & Tann led the review called after the audit of its financial statements for the year ended Dec 31, 2020. The lawyers have not seen independent evidence supporting explanations from Chow and the company&rsquo s management for the payment arrangements, but they did find that the transactions were made for their stated purposes.

 

Chow, who resigned from her role on Aug 8 last year, and the company&rsquo s management had explained that some time in early 2018, SKE&rsquo s sponsor for the proposed listing on the Hong Kong Stock Exchange had advised the company to &ldquo conserve as much cash as possible&rdquo .

 

The management also understood that the company should &ldquo refrain from entering into certain categories of transactions, including advertising&rdquo . But the management &ldquo mistakenly believed&rdquo that QKEH could first make the payments, and be subsequently reimbursed by Q&rsquo son Kitchen Equipment without legal implications, and chief executive officer Sally Chua then authorised the 8 transactions on behalf of Q&rsquo son Kitchen Equipment.

 

The findings showed that Chow had &ldquo unilaterally made and/or instructed the making of the document alterations in order to simplify the external audit process&rdquo , and that there was no evidence that SKE&rsquo s executive directors had knowledge of or participated in these alterations.

 

There is no evidence, however, that the altered documents were shown to any third parties, save for SKE&rsquo s external auditors. Rajah & Tann said it has not uncovered any evidence to suggest that the alterations were to facilitate or conceal criminal breach of trust, or fraud involving third parties.

 

While SKE has controls in place to prevent unauthorised payments and inaccurate recording of transactions, the 8 payments were not initially subject to these controls, since they were improperly made by QKEH on behalf of Q&rsquo son Kitchen Equipment.

 

The company has since taken steps to strengthen internal controls, such as by designating 2 groups of signatories to approve payments. All interested-person trasnactions and expenses incurred by the executive director would have to be approved by the board&rsquo s independent directors, and payments from Q&rsquo son Kitchen Equipment to QKEH are now strictly prohibited, the lawyers said.

 

Rajah & Tann said that any inaccuracies in Q&rsquo son Kitchen Equipment&rsquo s financial statements as a result of the improper transactions by QKEH could be viewed as breaches of the Companies Act as well as the Singapore Exchange&rsquo s Catalist Rules. Any inaccuracies found to have material impact on the market for the company&rsquo s securities could also constitute potential liability under the Securities and Futures Act.

 

The alteration of accounting records may constitute criminal offences under Singapore law, Rajah & Tann said.

 

The findings were made public in a bourse filing on Wednesday (Jun 8). SKE said its board is reviewing the report and will address the areas of concern identified after consulting its auditors, audit committee, management team and other professional advisors.

 

SKE is also under investigation by the Accounting and Corporate Regulatory Authority for possible breaches of Section 402(1) of the Companies Act. The section makes it an offence for a company&rsquo s officer, with intent to deceive, to make, furnish, or knowingly and wilfully authorise or permit the making or furnishing of any false or misleading statement or report to a director, auditor, member, or debenture holder of the corporation, or to an auditor of its parent company.

SINGAPORE Kitchen Equipment said it has been informed by the Accounting and Corporate Regulatory Authority (Acra) about an investigation into possible falsification of a report.

 

In a regulatory filing, it said the letter dated Mar 30 from the regulator of business registration, financial reporting, public accountants and corporate service providers requested a copy of the finalised report on potential irregularities relating to certain accounting records of its wholly owned subsidiary Q' son Kitchen Equipment.

 

Alternatively, the draft report by the law firm Rajah & Tann Singapore dated Aug 6, 2021 should be handed over, if the finalised version is not ready.

 

The document is requested by the regulator for its investigation into possible breaches of Section 402(1) of the Companies Act, which states that it is an offence for a company' s officer with the intent to deceive, produces or knowingly and wilfully authorises the production of any false or misleading statement or report to a director, auditor, member or debenture holder of the corporation or to an auditor of its parent company.

 

Singapore Kitchen Equipment said it will hand over the draft report as the finalised version is not yet available. Trading of the Catalist company' s shares has been suspended since Aug 2, 2021.

 

CATALIST-LISTED Singapore Kitchen Equipment announced on Friday (Jan 28), that its group senior sales manager, Alvin Chiao Shan Ran, has been administered a stern warning by the Corrupt Practices Investigation Bureau (CPIB).

 

CPIB will also take no further action in its investigation of Sally Chua Chwee Choo, executive director and chief executive officer of the company.

 

To recap, 3 of Singapore Kitchen Equipment executives - Chua, Chiao and Alan Lee Chong Hoe, an executive director - were under investigation in connection with entertainment expenses and sales commissions relating to certain projects undertaken by Q' son Kitchen Equipment, a wholly owned subsidiary.

SINGAPORE Kitchen Equipment   has exercised its option to purchase a freehold 3-storey industrial building for S$6.1 million in cash through its wholly-owned subsidiary Q' son Kitchen Equipment, announced the Catalist-listed group in a filing on Monday (Nov 8).

 

The option was first granted to Q' son on Oct 28, 2021 after the company paid S$61,000 or 1 per cent of the total consideration to the property' s vendor, EAC Corporation.

 

Singapore Kitchen on Nov 8 announced it paid a further S$244,000 or 5 per cent of the consideration, pending completion of its proposed acquisition.

 

The group intends to finance the remainder of the consideration through internally-generated funds and bank borrowings.

 

Located at units #01-01 and #03-01 of 207 Henderson Road in Henderson Industrial Park, the property spans 788 square metres.

 

Singapore Kitchen intends to use this venue to house its consolidated business operations, comprising a showroom and live demo kitchen as well as the group' s corporate office and various departments.

 

The group believes this centralisation will enhance management and oversight, increase operational synergies and efficiencies, and facilitate greater interaction among its staff.

 

In its Oct 28 filing, Singapore Kitchen said the property was " highly sought after" due to a scarcity of units in the market for sale.

 

It also highlighted the building' s freehold status, good transportation network and central location.

 

The group does not expect a material effect on its earnings per share or net tangible assets on a pro forma basis for the financial year ended December 2020.

 

CATALIST-LISTED Singapore Kitchen Equipment announced on Monday that its chairman and independent non-executive director Tan Bee Kiew has resigned due to medical reasons.

 

Madam Tan is also stepping down from her role as chairman of the audit committee and member of the nominating committee and remuneration committee with effect from Monday.

 

Based on its enquiries, the company' s sponsor, CIMB Bank Berhad, Singapore Branch is satisfied that there are no other material reasons for Ms Tan' s resignation.

 

As of Monday, independent non-executive director Lim Chee San will then take her place as chairman of the board and chairman of the nominating committee.

 

Independent non-executive director Ang Chiang Meng will take over as chairman of the audit committee and cease to be the chairman of the nominating committee. He will still remain as a member of the nominating committee.

 

Madam Tan had been appointed as chairman of the company on June 25, 2013. After her departure, the company will continue to have four independent directors currently residing in Singapore.

 

Prior to this announcement, Singapore Kitchen Equipment' s chief financial officer Chow Mei Ling resigned from her role on Aug 31. She cited personal reasons, as well as her intention to pursue another career opportunity, for her resignation.

CATALIST-LISTED Singapore Kitchen Equipment on Sunday said that its husband-and-wife founders Sally Chua Chwee Choo and Alan Lee Chong Hoe are on bail amid a corruption probe. 

 

Ms Chua is the group&rsquo s executive director and chief executive officer, while Mr Lee is an executive director. They are on bail in relation to investigations into offences under Section 6(b) of the Prevention of Corruption Act, the group said in a regulatory update.

 

It added that their passports have been surrendered to the Corrupt Practices Investigation Bureau (CPIB).

 

Ms Chua, Mr Lee and group senior sales manager Alvin Chiao Shan Ren were interviewed by the CPIB on or about Sept 10 in connection with entertainment expenses and sales commissions relating to certain projects undertaken by Q' son Kitchen Equipment, a wholly-owned subsidiary.

 

The group, through Q' son, provides commercial and industrial kitchen solutions for the food and beverage and hospitality services industries. Ms Chua is also the managing director of Q' son.

 

Singapore Kitchen Equipment said the investigation is ongoing and no charges have been filed against Ms Chua, Mr Lee and Mr Chiao as at Sunday.

 

Its nominating committee is of the view that the trio remains competent and it would be in the group' s best interests that they continue to discharge their responsibilities and duties in the operation of the group' s businesses. The nominating committee will re-assess its position where appropriate in the event there is any material development, the group said. 

 

Although it is presently not aware of any impropriety or offence committed by Ms Chua, Mr Lee and Mr Chiao, the board said it has appointed solicitors and an independent reviewer to, among other things, review the group' s internal processes and internal controls to further strengthen corporate governance.