Bursa reprimands Asdion, fines five directors for breach of rules

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KUALA LUMPUR (Sept 22): Bursa Malaysia Securities Bhd has publicly reprimanded Asdion Bhd and five of its directors for breach of the ACE Market Listing Requirements.

The five directors have also been slapped with a collective fine of RM145,000.

The five are independent non-executive chairman Datuk Seri Maglin Dennis D'Cruz (who resigned on March 20, 2020), executive director Razmi Alias, independent non-executive director Datuk Zulkifli Alias, independent non-executive director Selva Rasan A/L Datuk Puspa Das (who resigned on March 20, 2020) and independent non-executive director See Poh Yee (who resigned on May 31, 2018).

In a statement, Bursa said Asdion, which provides advanced integrated business and operations solutions, had breached Rule 2.23(1) of the ACE Market Listing Requirements for failing to comply with Bursa's directives in a letter dated Aug 24, 2017.

The company was accused of failing to carry out a limited review on its quarterly report for the financial period ended March 31, 2018 and the quarterly report for the financial period ended June 30, 2018.

Bursa said Asdion had failed to ensure its board of directors reviewed and assessed the adequacy and competency of its finance and accounting resources and the adequacy, comprehensiveness, implementation and effectiveness of the company's policies and procedures in respect of financial reporting.

It added that Asdion had failed to ensure that all its directors and the relevant personnel attended a training programme in relation to compliance with the ACE Listing Requirements, particularly pertaining to financial statements, by Nov 24, 2017.

Bursa said there was also a deviation of 107.5% or RM2,523,622 between the unaudited loss after tax and minority interest of RM2,346,515 and the audited loss after tax and minority interest of RM4,870,137 for the financial year ended March 31, 2018.

Bursa said Asdion 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 from the quarterly report for the financial period ended Sept 30, 2020. In addition, Asdion must ensure all its directors and relevant personnel attend a training programme in relation to compliance with the ACE Listing Requirements pertaining to financial statement," it said.

Asdion's share price closed 0.5 sen or 2.38% higher at 21.5 sen, giving a market capitalisation of RM27.5 million. Some 414,000 shares were traded.

Year-to-date, the stock has gained 79% from 12 sen.

S Kanagaraju