SMTrack publicly reprimanded by Bursa

PETALING JAYA: Bursa Malaysia Securities Bhd has publicly reprimanded SMTrack Bhd for breaching Bursa Malaysia Securities ACE Market Listing Requirements (ACE LR) by failing to issue its quarterly financial results and 2016 annual report within the stipulated time frame.

The regulator said through a statement that SMTrack, which announced the change of its financial year end from March 31 to July 31, was required to submit two sets of quarterly results for a three month period from April to June 2016 and for the month of July 2016 by Sept 30, following the change.
However, SMTrack’s representation that it was not aware that the change of the financial year end would affect the announcement period of the quarterly results and the need to consult Bursa Malaysia Securities, was unacceptable in view of the clear wordings under Rule 9.22(3) of the ACE LR.
The issuance of its annual report, which was deadlined on Nov 30 was also delayed by approximately a month, as it was only submitted on Dec 29.
SMTrack’s reasoning for the delay in issuing its annual report was attributed to a change in auditors, death of the accountant managing its accounts, and the extra time taken by its accounting staff and newly appointed external auditors to complete their work.
“These explanations were not acceptable and did not absolve the company’s obligation to ensure timely issuance of the annual report 2016 particularly as SMTrack had failed to demonstrate reasonable efforts or steps taken to expedite the change of auditors and/or address or resolve the issues with the auditors to ensure the timely completion of audit and issuance of the annual report 2016,” Bursa Malaysia said.
SMTrack’s shares were unchanged at 7 sen yesterday on some 1.18 million shares done.