KUALA LUMPUR (Mar 10): Bursa Malaysia Securities has publicly reprimanded plywood products manufacturer Annum Bhd (KL:ANNUM) and imposed fines of RM31,000 each on five of its directors for failing to issue the company's annual report for the 18-month financial period ended June 30, 2023 within the stipulated deadline.

The bourse regulator, in a statement on Monday, said Annum missed the Oct 31, 2023 deadline, releasing the annual report only on May 8, 2024 — a delay of over six months.

Annum breached paragraph 9.23(1) of the Main Market Listing Requirements, which mandates timely submission of audited financial statements and related reports, said Bursa Securities.

The reprimanded directors are independent non-executive chairman Kenneth Chai Chuan Teong (who resigned on Sept 18, 2023), executive director David Wong You King (who resigned on July 6, 2023), executive director Lim Yun Nyen, independent non-executive director and audit committee chairman Khor Chin Meng, and executive director Datuk Baharon Talib.

In addition to the fines, Annum's directors are required to attend training on compliance, particularly regarding financial reporting, and conduct a thorough review of its financial and accounting resources.

"Bursa Malaysia Securities views the breach seriously as timely submission of financial statements is a fundamental obligation of listed companies and is of paramount importance in ensuring an orderly and fair market for securities traded on Bursa Malaysia Securities and necessary to aid informed investment decisions," the regulator said.

Annum’s delay stemmed from requesting its auditors' resignation on Aug 3, 2023, just three months before the deadline. The company struggled to appoint new auditors, finalising the appointment only seven months later on Feb 27, 2024.

The newly appointed auditors issued a disclaimer of opinion, triggering Practice Note 17 (PN17) classification for Annum on May 8, 2024.

Despite some directors resigning before the deadline, Bursa Securities determined they had acquiesced to the auditor change without adequate inquiries into the timeline for securing replacements and completing the audit.

Annum's shares were last traded on March 7, closing at six sen, for a market capitalisation of RM13.65 million.

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