KUALA LUMPUR (Aug 24): Asdion Bhd has been publicly reprimanded by Bursa Malaysia Securities Bhd for failing to issue its Annual Report (AR) for the financial year ended March 31, 2016 (FY16) by the stipulated timeframe of July 31, 2016.

Instead, Asdion issued the AR FY16 14 market days later on Aug 18, 2016, a filing in the local bourse showed today.

Asdion was also reprimanded for failing to ensure its fourth quarterly report for FY16 (4QFY16) issued on May 31 last year took into account the adjustments it announced on Aug 12 that same year.

Bursa Securities viewed the contraventions seriously and reminded the group and its board of their responsibility to maintain appropriate standards of corporate responsibility and accountability to its shareholders and the investing public, and ensure that such financial reporting breach will not recur.

"While Bursa Malaysia Securities has not found any of ASDION's directors to have caused or permitted the breaches by the company, Bursa Malaysia Securities wishes to highlight and remind that it is the duty of the directors to maintain appropriate standards of responsibility and accountability in ensuring compliance of the ACE LR (listing requirements)," it said.

It also directed Asdion 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, 2017.

"In addition, Asdion must ensure all its directors and relevant personnel attend a training programme in relation to compliance with the ACE LR pertaining to financial statements," it said.

On Aug 2 last year, Asdion announced the delay in the issuance of its AR FY16 as a result of a delay in the consolidation of its Singapore subsidiary accounts which was pending issuance of confirmation from the auditors in Singapore to Asdion's external auditors.

Asdion said there was a change in the finance team in the subsidiary and that the new team had to familiarise with the accounts, resulting in the subsidiary not being able to provide the audit clearance to Asdion's external auditors.

On the inaccuracy in the 4QFY16 report, Asdion reported an unaudited loss after taxation and minority interest of RM921,219 in the quarter compared to an audited loss after taxation and minority interest of RM1.7 million in FY16.

"In this regard, the difference of RM820,884 between Asdion's 4QFY16 and audited results represented a variance of approximately 89.1%," the announcement read.

The deviation was mainly due to over-recognition of gain from disposal of subsidiaries of RM629,000 where the foreign currency translation reserve should be reversed to profit and loss account instead of retained earnings in accordance with clear accounting standard.

"(It was also due to) under-recognition of costs of goods sold of RM175,000 which was essentially due to the company's oversight," it further said.

Bursa said Asdion failed to put in place measures and controls to enable the company to adhere to its financial reporting obligations.

Asdion dropped one sen or 5.41% to close at 17.5 sen for a market capitalisation of RM20.9 million.