TECH firm Advance Modules, already up to its neck in financial and legal woes, has received a demand from its special auditor for payment of $448,500.
KPMG Advisory Services wants the sum - fees for its services - to be paid within seven days from Jan 9. It has threatened to start legal proceedings if the debt is not settled.
Advance Modules has been accused of being involved in 'round-tripping' transactions with NEL, Long Gain Technology and Diviner Technology.
'Round-tripping' refers to the practice of manipulating sales figures to give the impression of higher revenues.
KPMG had first reported that the company's sales figure of US$14.4 million was fabricated to meet an internal profit target for the 2005 financial year.
The allegedly dodgy sales involved deals back and forth between Long Gain, which in turn resold them. The allegations also resulted in senior figures at NEL and Advance Modules being suspended or quitting.
Creditors also started demanding millions of dollars of repayment from Advance Modules.
In Singapore, the firm's auditor, Horwath First Trust, sent the company a legal letter on Nov 12 last year, asking for $135,993.51 in payment for debts.
Advance Modules has also received a Jan 12 letter from David Lim & Partners demanding payment of $15,300.
In Shanghai, there are demands for 11.5 million yuan to be paid, including unpaid staff salaries of 1.5 million yuan. And various creditors in Malaysia are asking for immediate payment of RM1.26 million.
Advance Modules directors continue to advise shareholders to exercise caution when dealing in its shares, which remain suspended.
