Bursa M'sia Securities reprimands Ire-Tex

Ire-Tex employee checking the durability of the packaging materials

KUALA LUMPUR: Bursa Malaysia Securities Bhd (Bursa Securities) has publicly reprimanded Ire-Tex Corp Bhd for failing to make sure that its fourth quarterly report for the financial year ended Dec 31, 2014, (FY14) was factual and accurate.

The securities trading regulator said in a statement that Ire-Tex, a packaging materials maker, had failed to ensure that its report, submitted on Feb 27, 2015. took into account various adjustments that the company later revealed on May 8. These included impairment of trade receivables and reversal of provision of profit guarantee to goodwill in other incme.

To recap, there was a deviation between the group’s profit after tax and minority interest as stated in the quarterly results and the audited financial statements. The group “profit” of RM2.79mil for the financial year ended Dec 31, 2014, turned out to be a loss of RM6.15mil.

“The public reprimand was imposed pursuant to paragraph 16.19(1) of the Main Listing Requirements after taking into consideration all facts and circumstances of the matter including the impact on Ire-Tex’s share price movement and volume traded after announcement of the Q4 FY14 and the company’s audited financial statements/adjustments and upon completion of due process,” Bursa Securities said.

“Ire-Tex 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 June 30, 2016,” it added.

Moreover, Bursa Securities said, Ire-Tex must ensure all its directors and relevant personnel attend a training programme in relation to compliance with the listing requirementspertaining to financial statements.

While Bursa Securities has not found any of Ire-tex’s directors to have caused or permitted the breach by the company, it wishes to highlight and remind  that wat is the duty of the directors to maintain appropriate standards of responsibility and accountability in ensuring compliance of the listing requirements.

Ire-Tex shares closed unchanged at 22 sen on Friday.