KUALA LUMPUR (Oct 22): Bursa Malaysia Securities Bhd has publicly reprimanded FSBM Holdings Bhd and six of its directors for failing to issue the company’s annual report for the financial year ended June 30, 2018 within the stipulated time frame.  

The six directors of the information technology service and systems provider have also been slapped with a collective fine of RM375,600.  

The six are senior independent non-executive chairman Datuk Dr Abdul Rahim Daud, managing director Datuk Tan Hock San @ Tan Hock Ming, executive director Tan Ee Ern, independent non-executive director Abdul Jalil Abdul Jamil, independent non-executive director Chang Wei Ming (who resigned on Dec 19, 2018).  

In a statement, Bursa Malaysia said it views the contravention seriously as the timely submission of financial statements is one of the fundamental obligations of listed companies.

It is of paramount importance in ensuring a fair and orderly market for securities traded on the exchange and necessary to aid informed investment decisions, the exchange said.

It noted that the delay in issuing the annual report was mainly due to a disagreement with the external auditors in issuing a disclaimer of opinion for the company's audited financial statements, which would have resulted in the company triggering the Practice Note 17 (PN17) criteria.

The external auditor had on Oct 31, 2018 issued the disclaimer on the basis that FSBM was unable to obtain sufficient audit evidence to satisfy themselves as to the appropriateness of the carrying amounts of the trade and other receivables due from Technitium Sdn Bhd of RM7.6 million and business consultant of RM3.2 million in accordance with the Malaysian Financial Reporting Standards.  

However, FSBM and the directors had also disregarded compliance with the listing rules by not issuing the annual report to avoid triggering PN17 which would purportedly jeopardise the company’s prospects in securing a project, noted Bursa Malaysia.  

Trading in FBSM shares was suspended for 13 months from Nov 9, 2018. Trading resumed on Jan 3 this year.  

The shares closed down 0.5 sen or 4.76% at 10 sen today, giving it a market capitalisation of RM14.13 million. Some 33,40 shares were traded.