Late in audited financial statement will triggers investigations

TheStar Online

Monday February 27, 2012
By ERROL OH

The company needs to explain delay in submission of audited statements

PETALING JAYA: It is a glaring anomaly when a listed company is late in producing its audited accounts.

Therefore, it will be no surprise to see senior executives of Silver Bird Group Bhd and representatives of its external auditors at the Bursa Malaysia and Securities Commission (SC) buildings this week following the company’s announcement on Friday that it could not meet the Feb 29 deadline for the issuance of its audited financial statements for the year ended Oct 31, 2011.

“It’s a given that we (the Silver Bird management and auditors Crowe Horwath) will have to engage with the authorities over the next few days to explain the circumstances behind the delay,” says a source close to the matter.

“They will surely provide Bursa Malaysia and the SC with more information than the explanation given in the Friday announcement to the exchange.

“The reason for failing to issue the outstanding financial statements within the relevant timeframe is due to the company needing more time to resolve audit queries raised by the auditors on Feb 22.”

Group managing director Datuk Jackson Tan Han Kook, declined to comment when contacted by StarBiz yesterday evening, saying he was in a meeting.

Silver Bird, which makes bread and confectionery, is required to issue its audited accounts within four months from its financial year-end. In the announcement, the company said it expected to issue the audited financial statements by May 31, adding that it was in the process of compiling the required details.

Under the listing rules, if Silver Bird fails to issue the audited accounts by March 7, trading in its securities will be suspended the day after.

Lembaga Tabung Haji is the company’s largest shareholder, with 23.34%. Tan and Koperasi Permodalan Felda Malaysia Bhd are the other substantial shareholders, with 13.71% and 13.36% respectively.

According to its unaudited results for the fourth quarter ended October last year, Silver Bird recorded a profit of RM4.9mil for financial year 2011, a 35% jump from the previous year whereas revenue increased by only 3%.

Source: http://biz.thestar.com.my/news/story.asp?file=/2012/2/27/business/10811771&sec=business

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