Enforcement action taken against Zilingo for failure to submit annual reports: ACRA

SINGAPORE: The Accounting and Corporate Regulatory Authority (ACRA) said on Thursday (Feb 16) that it took enforcement action against fashion start-up Zilingo for not filing its annual returns for two years - 2020 and 2021.

While ACRA did not specify what actions were taken against the company, which is now in liquidation, it said enforcement actions typically include sending reminders, imposing composition sums or striking the company off the register. 

All Singapore-incorporated companies are required to file annual returns with ACRA to keep the company’s information on the authority’s register up-to-date.

Some companies are also required to file their financial statements, as part of their annual returns filing. 

For the financial year ending in March 2022, 77 per cent of companies filed their annual returns on time, a spokesperson from ACRA told CNA.

Zilingo began its liquidation process last month, putting an end to its struggles that have rocked the tech industry in Southeast Asia.

At its height, the firm had raised more than US$300 million from some of the region’s most prominent investors, including Temasek Holdings and Sequoia Capital India, the regional arm of the Silicon Valley firm that backed Apple and Google.

Temasek, one of 23 investors, held an 8.3 per cent stake in Zilingo as of Jun 21 last year.

Responding to queries from CNA, ACRA said various resources are available to help company directors get a better understanding of their responsibilities under the Companies Act. 

This includes training programmes, as well as guides on how to prepare financial statements. 

ACRA also said it conducts outreach programmes, in collaboration with partners like the Singapore Institute of Directors, on good financial reporting practices.

Companies should invest in training and upskill their finance teams to ensure high quality financial reporting, it advised.