Bina Goodyear, XOX draw flak from Bursa Malaysia

PETALING JAYA: Bursa Malaysia Securities Bhd has publicly reprimanded Bina Goodyear Bhd due to inaccuracy of its annual audited accounts for the financial year ended June 30, 2012 published on Oct 29, 2012.
The regulator said in a statement that the annual audited accounts was not factual and accurate, particularly with regards to the carrying value of the amounts due from customers on contracts and trade and other receivables.
On Nov 19, 2012, the company announced that its senior general manager of finance in charge of the accounts had brought to the attention of the board that RM29.6 million of the work-in-progress (WIP) was not billable and chargeable to the customers and the company would need to make a provision for this amount.
"Prior to this, there was no evidence including from the findings of the investigative audit report announced by Bina Goodyear on Feb 22, 2013 that the board of directors was aware of such significant unrecoverable WIP.
"As a result of the provision which affected the company's shareholders' equity, the company triggered the prescribed criteria under paragraph 2.1(a) of Practice Note 17 and made the first announcement on Nov 19, 2012."
On Nov 30, 2012, the company announced its quarterly report for the financial period ended Sept 30, 2012 in which the company made provisions which were related to the prior year namely, provision for amount due from customers on contracts/WIP amounting to RM43.02 million and provision for doubtful debts amounting to RM8.6 million.
Bina Goodyear is 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.
Bursa Malaysia said the limited review must be performed by the company's external auditors for four quarters commencing no later from the quarterly report for the financial period ended Sept 30, 2014.
The company must also ensure all its directors and relevant personnel attend a training programme in relation to compliance with the main listing requirements particularly pertaining to financial statements.
"While Bursa Malaysia has not found any of Bina Goodyear's directors to have caused or permitted the breach by the company, Bursa Malaysia wishes to highlight that it is the duty of the directors to maintain appropriate standards of responsibility and accountability in ensuring compliance of the main listing requirements," it said.
In a separate statement, Bursa Malaysia also reprimanded XOX Bhd for failing to ensure that its announcement dated Aug 30, 2013 on the fourth quarterly report for the financial year ended June 30, 2013 took into account the adjustments as stated in the company's announcement dated Nov 8, 2013.
XOX is also 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, 2014.
XOX must ensure all its directors and relevant personnel attend a training programme on compliance with the ACE market listing requirements pertaining to financial statements.