KUALA LUMPUR (Dec 24): Bursa Malaysia today publicly reprimands Komarkcorp Bhd (Komark) for its inaccurate financial reporting for the fourth quarter ended April 30, 2013 (4QFY13).

This was an act of breaching the Bursa Malaysia Securities Main Market Listing Requirements, said the stock exchange in a statement today.

According to Bursa Malaysia, Komark had initially reported an unaudited profit after tax and minority interest of RM1.517 million for 4QFY13.

However, subsequent to external auditing, the aforesaid financial result had turned out to be an audited loss after tax and minority interest of RM4.831 million.

The discrepancies of RM6.348 million before and after external audit represented a variance of about 418%.

Major driver of the variance came from RM3.927 million of old, slow moving, and unusable stocks, in which Komark had failed to make a provision in 4QFY13 without a reasonable explanation.

“The other adjustments in the AAA (Annual Audited Account) 2013 were essentially due to the company’s errors and oversight,” Bursa pointed out in its statement.

Nevertheless, the stock exchange has not found evidence that indicated it was Komark’s directors that caused or permitted the breaching of LR by the company.

Bursa Malaysia thus urged Komark to carry out a limited review on its quarterly report submissions by external auditors for four quarters before 3QFY15 ending Jan 31, 2015.

On top of that, Komark’s directors are warned that it is their duty to maintain appropriate standards of responsibility and accountability in ensuring compliance of the listing requirement.

“Komark must ensure all its directors and relevant personnel attend a training programme in relation to compliance with the Main LR pertaining to financial statements,” Bursa stated.

Komark share price traded unchanged today at 52 sen, giving it a market capitalisation of RM42.26 million.