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Bursa Malaysia Securities Berhad (635998-W) (Bursa Malaysia Securities) has publicly reprimanded Ajiya Berhad (AJIYA) in respect of the company’s fourth quarterly report for the financial year ended 30 November 2016 (4th QR 2016) announced on 19 January 2017 which was in contravention of paragraph 9.16(1)(a) of the Bursa Malaysia Securities Main Market Listing Requirements (Main LR).
Paragraph 9.16(1)(a) of the Main LR states that a listed issuer must ensure that each announcement made is factual, clear, unambiguous, accurate, succinct and contains sufficient information to enable investors to make informed investment decisions.
AJIYA had failed to ensure that the 4th QR 2016 took into account the adjustments announced on 4 April 2017 (the Adjustments).
The public reprimand was imposed pursuant to paragraph 16.19(1) of the Main LR after taking into consideration all facts and circumstances of the matter including the materiality of the breach and upon completion of due process.
AJIYA was also required to review and ensure the adequacy and effectiveness of its financial reporting function and carry out a limited review on its quarterly report submissions. The limited review must be performed by the company’s external auditors for four quarterly reports commencing no later from the quarterly report for the financial period ended 28 February 2018. In addition, AJIYA must ensure all its directors and relevant personnel attend a training programme in relation to compliance with the Main LR pertaining to financial statements.
While Bursa Malaysia Securities has not found any of AJIYA’s directors to have caused or permitted the breach by the company, Bursa Malaysia Securities wishes to highlight and remind that it is the duty of the directors to maintain appropriate standards of responsibility and accountability in ensuring compliance of the Main LR. The Board of Directors of AJIYA at the material time was as follows:-
- Dato’ Dr Mohd Aminuddin bin Mohd Rouse
- Dato’ Chan Wah Kiang
- Yeo Ann Seck
- Dato’ Theng Book
- Tan Seng Kee
- Low Peak Yih
Bursa Malaysia Securities views the contravention seriously as the timely and accurate submission of financial statements to enable investors to make informed investment decisions is one of the fundamental obligations of companies listed on the Official List of Bursa Malaysia Securities.
BACKGROUND
AJIYA had reported an unaudited profit after tax and minority interest of RM18,712,000 in its 4th QR 2016 announced on 19 January 2017 as compared to an audited profit after tax and minority interest of RM14,494,000 in the audited financial statements for the financial year ended 30 November 2016 (AFS 2016) announced on 29 March 2017. The difference of RM4,218,000 between the 4th QR 2016 and the AFS 2016 represented a variance of 22.54%.
The Adjustments were mainly due to the error or omission by the company and subsequently adjusted by the external auditors in accordance with the accounting standards.
