Nakamichi reprimanded, directors fined RM545,600

PETALING JAYA: Bursa Malaysia Securities Bhd has publicly reprimanded Nakamichi Corp Bhd and its four directors for breaches of the Bursa Securities Main Market Listing Requirements (Main LR) with a fine totaling RM545,600 due to their failure to submit the company's financial statements on time.

See Thoo Chan was fined RM248,000 while Darren Solomon Low Jun Ket, Goh Tai Wai and Mak Siew Wei RM99,200 each.

Nakamichi was publicly reprimanded for committing breaches of paragraphs 9.22(1) and 9.23 read together with paragraph 9.28(1) of the Main LR where it had failed to announce and/or issue the financial statements within the timeframe of Sept 18, 2015 stipulated by Bursa Securities.

The financial statements include the quarterly reports from the financial period ended June 30, 2013 until June 30, 2015, which were only announced on Oct 30, 2015; the annual audited financial statements for the financial year ended Dec 31, 2013 and 2014, which were only announced on Dec 31, 2015 and Jan 4, 2016 respectively; and the annual reports for the financial year ended Dec 31, 2013 and 2014, which were only announced on Feb 29, 2016.

"Bursa Securities views the contraventions seriously as the timely and accurate submission of financial statements is one of the fundamental obligations of listed companies and is of paramount importance in ensuring a fair and orderly market for securities traded on Bursa Securities and necessary to aid informed investment decisions."

Nakamichi had on May 29, 2015 announced that as Tamabina Sdn Bhd, its 51%-owned major subsidiary had been wound-up via a Court Order dated Feb 3, 2015 by the High Court of Sabah and Sarawak, the company was in the midst of preparing all the outstanding financial statements to comply with the Main LR by writing off the 51% investment in Tamabina.

Bursa Securities had on July 10, 2015 allowed Nakamichi to submit all the outstanding financial statements by Sept 18, 2015 as requested. However, Nalamichi had only submitted the financial statements after a delay of 1.5 to 5.5 months.

Nakamichi had blamed the actions of the former director/CEO and CFO who had deprived the company of its full financial records particularly the financial records of Tamabina and the external auditors for the delay.

However, the delay in submission of the financial statements by the stipulated timeframe of Sept 18, 2015 was in fact due to Nakamichi's failure to maintain/provide such accounting and other records on a timely basis.