TH Heavy Engineering reprimanded

PETALING JAYA: Bursa Malaysia has publicly reprimanded TH Heavy Engineering Bhd for failing to ensure that the company's announcement of its fourth quarterly report for the financial year ended Dec 31, 2013 (Q4 FY13) took into account the adjustments which were made in the annual audited accounts for FY13.
The company reported an unaudited profit after taxation and minority interest (Patami) of RM1.603 million in Q4 FY13, compared with an audited Patami of RM8.188 million in the annual audited accounts for FY13.
The variance of RM6.585 million between the unaudited and audited results represented a deviation of 410.8%.
According to Bursa, the adjustments, as announced on May 30, 2014, were mainly due to the company's errors and oversight as it had failed to account for the share of profit from an associate and wrongly categorised the 30% share of losses of non-controlling interests in a subsidiary to the owners of the company in Q4 FY13.
Bursa said in a statement yesterday that the failure to take into account the adjustments was in contravention of listing requirements where a listed issuer must ensure that each announcement made is factual, clear, unambiguous, accurate, succinct and contains sufficient information to enable investors to make informed investment decisions.
TH Heavy Engineering 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.
"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 Dec 31, 2014. In addition, TH Heavy Engineering must ensure all its directors and relevant personnel attend a training programme on compliance with the main listing requirements pertaining to financial statements," said Bursa.
Bursa said it has not found any of TH Heavy Engineering's directors to have caused or permitted the breach but highlighted the duty of the directors in maintaining appropriate standards of responsibility and accountability in ensuring compliance of the main listing requirements.