Bursa reprimands Ajiya over errors, omissions

PETALING JAYA: Ajiya Bhd has been publicly reprimanded by Bursa Malaysia Securities Bhd for errors and omissions which led to a 22.54% deviation between its unaudited net profit and audited figure for its fourth quarter results for the financial year ended Nov 30, 2016.

The group said in a Bursa Malaysia filing that it was reprimanded by the stock exchange regulator for failing to ensure that the announcement took into account the adjustments announced on April 4, 2017 in relation to dividend payment at subsidiary level, additional provisions for bad debts, foreign exchange loss, administrative expenses and taxation.

Ajiya reported an unaudited net profit amounting to RM18.71 million in its quarterly results announcement dated Jan 19, 2017, which was 22.54% higher than the audited net profit of RM14.49 million in March 29, 2017.

“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 Feb 28, 2018,” Bursa Malaysia said.

The group’s directors and relevant personnel are also required to attend a training programme in relation to compliance with the Main Listing Requirement pertaining to financial statements.

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.

The stock gained 0.77% to close at 65.5sen with some 420,600 shares done.