Ikhmas Jaya’s audited FY17 profit 51.5% lower than reported earlier

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KUALA LUMPUR (April 26): Engineering and construction group Ikhmas Jaya Group Bhd’s audited financial results for its year ended Dec 31, 2017 (AFS 2017) has a variance of RM7.4 million or 51.5% from its unaudited fourth quarter results ended Dec 31, 2017 (4QFY17), according to its filing with Bursa Malaysia.

The profit attributable to owners of Ikhmas Jaya was only RM6.9 million in AFS 2017, as opposed to the RM14.3 million reported in 4QFY17.

“The major cause of the variance in profit attributable to owners of Ikhmas Jaya between 4QFY17 and AFS 2017 was mainly due to the consolidation adjustment made for the capitalisation of depreciation charge on plant and machinery into the project costs,” the filing said.

The depreciation amount eligible for capitalisation was revised and a consolidation entry superseding the initial entry was recorded, it added. However, the initial entry was inadvertently omitted in its 4QFY17’s reported results.

At closing, Ikhmas Jaya’s share price fell 1 sen or 2.63% to 37 sen, with about 456,900 shares traded, giving it a market capitalisation of about RM202 million.