Frankly Speaking: Inconsistent announcements

This article first appeared in The Edge Malaysia Weekly, on August 5, 2019 - August 11, 2019.
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On July 19, Asia Media Group Bhd announced that its annual audited financial statements together with the auditors’ and directors’ reports for its financial year ended Dec 31, 2018, were still not ready. That was the expected date of issuance.

The company said its “Annual Report 2018 is now in the final drafting stage” and that it “expects to issue or submit the outstanding annual report” to Bursa Malaysia and shareholders by Aug 2, 2019.

Then on Aug 1, Asia Media said its annual report was still not ready for issuance and submission as “the directors still have no access to the office of the company and are currently seeking legal recourse to resolve the issue”.

It stated that it expects to issue or submit the outstanding annual report for FY2018 to Bursa Malaysia by Sept 2.

How is it that Asia Media Group’s annual report was in the final drafting stage in July, but in August, barely a few weeks later, lack of access to its office premises had thrown a spanner in the works?

In a nutshell, if a company’s annual report is in the final drafting stage, there should be no other obstacles, and the additional time given seems fair. However, seeking an additional month as the directors have no access to the company’s office seems to indicate a much larger problem.

Asia Media Group should be more specific about the problems it is facing and give a definite date for issuing its annual report. The directors and management are duty bound to  ensure the report is issued on time.

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