Bursa reprimands G Neptune, four former directors

KUALA LUMPUR: Bursa Malaysia has publicly reprimanded G Neptune Bhd (GNB) and imposed fines totalling RM262,000 on four of its former directors for breaches of the listing requirements.

The four are former executive director Khoo Yick Keung and former independent non-executive directors Chan Lai Yi, Lo Yin Ling and Tan Sri Singadju Benui.

The bourse said on Dec 4 that GNB failed to issue its annual report that included the annual audited financial statements together with the auditors’ and directors’ report for the 18-month financial period ended (FPE) June 30, 2017 (2017 Annual Report or AR 2017) on or before Oct 31, 2017.

AR 2017 was only issued on May 17, 2018, after a delay of 6.5 months.

The company also failed to ensure that its quarterly report for the FPE June 30, 2017 (QR6/2017) was accurate and contained sufficient information to enable investors to make informed investment decisions.

Bursa said GNB had also reported an unaudited loss after tax and minority interest of RM1.3 mil in QR6/2017 compared to an audited loss after tax and minority interest of RM8.6 mil for 18-month FPE June 30, 2017, a deviation of 561%.

The deviation was mainly due to an impairment loss arising from writing off the prepayments and deposits paid to a supplier totalling RM7.24 mil.

In addition to the public reprimand, GNB is required to review and ensure the adequacy and effectiveness of its financial reporting function, the bourse said.

“The directors had failed to discharge their duty, particularly to make enquiries and/or assessment on the recoverability and/or impairment of the deposit in approving the QR6/2017 at the Audit Committee and Board of Directors meeting on Aug 28, 2017.

“There was also lack of supervision, monitoring and follow-up by the directors on the status of the preparation and issuance of AR 2017,” Bursa said.

It added that the mere reliance by the directors on the management to address/resolve the audit issue was unacceptable in the discharge of their obligations and was tantamount to abdication of their responsibilities. – Bernama

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