OTHERS DUFU TECHOLOGY CORP. BERHAD (DUFU OR THE COMPANY) - UPDATES ON ANNOUNCEMENT IN RELATION TO RECEIPT OF ALLEGATION LETTER

DUFU TECHNOLOGY CORP. BERHAD

Type Announcement
Subject OTHERS
Description
DUFU TECHOLOGY CORP. BERHAD (DUFU OR THE COMPANY)
- UPDATES ON ANNOUNCEMENT IN RELATION TO RECEIPT OF ALLEGATION LETTER

Unless stated otherwise, definitions used in this announcement shall carry the same meaning as defined in the announcement dated February 11, 2015, March 3, 2015, March 7, 2015, May 27, 2015, June 29, 2015 and July 7, 2015 respectively in relation to the Receipt of Allegation Letter.

Further to the Company’s announcements dated July 7, 2015, the Board of the Directors of the Company wishes to announce that it has received and reviewed the Report on the following:

 a.       Allegation in relation to unauthorised remittances of funds to foreign customers in the United States of America in 2013 and 2014 (“1st Issue”); and

 b.      Unbilled delivery orders issued in 2012 and 2013 discovered by the management during the migration of data to new computer accounting software (“2nd Issue”).

 In relation to the 1st Issue, the following can be noted from the Report:

 a.       For the year 2013 and 2014, approximately USD1.01 million was remitted from two subsidiaries (namely Dufu Industries Sdn Bhd and Dufusion Sdn Bhd) of the Company to a company incorporated under the laws of United State of America (“the USA Company”).

b.        These remittances were authorized by key members of the senior managements of the Company

c.       It appears that 1 of the key member of the senior management is connected or related to the USA Company by virtue of his position as a senior management in the USA Company.

d.                 The remittance of USD1.01 million was ostensibly for two (2) purposes namely, the purchase of assets of USD 0.415 million and purported working capital of USD 0.595 million including marketing and operating expenses.           

e.        The beneficiary of these remittances appears to be the USA Company.

 In relation to the 2nd Issue, the following can be gathered from the Report:

 a.       For the year 2012 and 2013, subsidiaries of the Company issued a total of 67 delivery orders to a company related to a former director of the Company, who was still a director of the Company when these transactions occurred.

b.        Despite the provision of services to that company, the Company did not issue any invoices for payment. The amount involved for both years RM543,781.41.(2012 - RM 362,083.90 and 2013 – RM 181,697.51)

c.        It appears that the none-billing was not an oversight but was calculated to benefit the company related to the former director of the Company.

d.        In essence, the invoices that were supposed to be issued were not issue resulting in no payment received in respect of the 67 delivery orders.  The unbilled invoices caused understatement of the revenue of Dufu by RM543,781.41 whilst the Board is assessing the potential profit attributable by the unbilled invoice. The board has on July 14, 2015 directed the management to issue the said invoices and will take all necessary action to recover the amount accordingly.

The Board of Directors is currently seeking legal advice in respect of the contents of the Report and will continue to provide the relevant update in due course.

 






Announcement Info

Company Name DUFU TECHNOLOGY CORP. BERHAD
Stock Name DUFU
Date Announced 16 Jul 2015
Category General Announcement for PLC
Reference Number GA1-16072015-00048