SINGAPORE (Jan 14): An internal audit has found a potential overstatement of about $2 million in Jason Holdings’ profit and loss position for HY2015 as a result of omissions in the recognition of cost of goods sold, the company says.

In a regulatory filing on Thursday, CEO Jason Sim Chon Ang says that the omissions, which were discovered by its internal auditors, came about because of lapses in the timely and adequate recording of transactions.

The internal audit review, which was ordered in response to an employee’s feedback, also found that subsidiary, Jason Parquet Specialist, did not pay the salaries of certain employees in time.

It also discovered that Jason Parquet Specialist did not comply with certain bank covenants relating to three banking facilities as at June 30, 2015. There were also erroneous submissions of supporting documents for the application of short-term trade facilities.

Sim says the company has commissioned a review by external auditors and will commission a special independent committee to review the internal audit report which covered a six-month period ended June 30, 2015.

The company requested a suspension in the trading of its shares on Wednesday.

Jason Holdings last closed at 6.2 cents.