Bursa reprimands Johan after company posts two varying figures on FY15 losses

by **Cals** Tue 17 May 2016, 02:15

Bursa reprimands Johan after company posts two varying figures on FY15 losses

By Meena Lakshana / theedgemarkets.com | May 16, 2016 : 9:23 PM MYT

KUALA LUMPUR (May 16): Bursa Malaysia has reprimanded Johan Holdings Bhd after the company posted a 12.05% variance in its loss after taxation and minority interest in its unaudited fourth quarter of financial year 2015 (4QFY15) results and its audited financial statements for financial year 2015.

In a filing with Bursa Malaysia today, Johan said it had reported a loss after taxation and minority interest of RM18.63 million in 4QFY15, announced on March 24, 2015, but reported an audited loss after taxation and minority interest of RM16.39 million in its audited financial statements for the financial year ended Jan 31, 2015

"The main adjustment was in respect of the reversal of the provision for customer reward points which was over provided by RM1.38 million in 4QFY15 without reasonable justification," the filing stated.

"Despite being advised of the adjustment required for the over provision of the club reward points prior to the submission of the 4QFY15 and the impact of the over provision by 7.4% of profit/loss after tax and minority interest, Johan decided not to incorporate the adjustment in the 4QFY15 due to the lengthy process involved in amending the 4QFY15," it added.

As such, Johan said Bursa Malaysia found that its filing of the unaudited results for 4QFY15 was in contravention of paragraph 9.16(1)(a) of the Bursa Malaysia Securities Main Market Listing Requirements.

Paragraph 9.16(1)(a) of the requirements states that 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.

"Johan had failed to ensure that its 4QFY15 took into account the adjustments as stated in the announcement dated June 4, 2015," it said.

"Bursa Malaysia Securities views the contravention seriously as timely and accurate submission of financial statements to enable investors to make informed investment decisions is one of the fundamental obligations of companies listed on the official list of Bursa Malaysia Securities," it added.

Johan said the public reprimand was imposed pursuant to paragraph 16.19(1) of the listing requirements after taking all facts into consideration, including the impact on Johan's share price movement and volume traded after announcement of its 4QFY15 results and the company's audited financial statements.

The company is required to review and ensure the adequacy and effectiveness of its financial reporting function, as well as 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 ending July 31, 2016.

Johan's directors and relevant personnel must also attend a training programme in relation to compliance with the listing requirements pertaining to financial statements.

Johan said its board of directors at the material time were Tan Sri Tan Kay Hock, Datin Tan Swee Bee, Tan Sri Ting Chew Peh, Datuk Ahmad Khairummuzammil Mohd Yusoff and Ooi Teng Chew.

Johan shares closed unchanged at 13.5 sen, with a market capitalisation of RM84.1 million.