KUALA LUMPUR (Jan 15): Ajiya Bhd was publicly reprimanded by Bursa Malaysia today over a material difference in the group’s unaudited and audited financial statements for the financial year ended Nov 30, 2016 (FY16). 

On Jan 19 last year, Ajiya had reported an unaudited profit after tax and minority interest (PATAMI) of RM18.71 million for FY16. However, on March 29 last year, the group announced its audited PATAMI for FY16 was RM14.49 million. 

There was thus a difference of RM4.22 million between the two financial statements, or a variance of 22.54%. 

Bursa Malaysia, in its announcement today, said the difference was mainly due to an error or omission by Ajiya, which was subsequently adjusted by the external auditors in accordance with accounting standards. 

Bursa said Ajiya’s conduct contravened the requirement under the Main Market Listing Requirement that a listed issuer must ensure each announcement made is factual, clear, unambiguous, accurate, succinct and contains sufficient information to enable investors to make informed investment decisions. 

Ajiya was 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 than the quarterly report for the financial period ended Feb 28, 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,” Bursa said. 

While it has not found any of Ajiya’s directors to have caused or permitted the breach, the exchange highlighted it is the directors' duty to maintain appropriate standards of responsibility and accountability. 

Ajiya’s directors at the material time were Datuk Dr Mohd Aminuddin Mohd Rouse, Datuk Chan Wah Kiang, Yeo Ann Seck, Datuk Theng Book, Tan Seng Kee and Low Peak Yin. 

Ajiya’s share price gained 0.5 sen or 0.77% to 65.5 sen today, giving it a market capitalisation of RM195.09 million.