United Food special audit finds 'unusual' cash transactions

Also flagged were potential breaches of listing rules and lapses in internal controls

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A years-long special audit into mainboard-listed United Food Holdings has found several "unusual" cash transactions and potential contraventions of SGX listing rules, among other issues.

KPMG Forensic, a division of KPMG Services, was appointed by United Food's audit committee to conduct the special audit in December 2021. This came after the company's external auditors issued a disclaimer of audit opinion on its financial statements for financial years 2020 and 2021.

Issues raised by the external auditors related to two companies, namely Hebei Xingrun Shengwu Keji Gufen (HBXR) and Chengde Purun Shengwu Zhiyao (CDPR).

United Food announced in October 2017 that it was acquiring an 80 per cent stake in both these companies, While HBXR's primary activity is in the production and sale of an antioxidant product and its related equipment, CDPR is said to primarily produce and sell animal feed and traditional Chinese medicine extracts.

United Food in May 2023 announced the termination of its proposed acquisition of HBXR, CDPR, and another company as it was "not optimistic about the prospects of these businesses, going forward".