KUALA LUMPUR (Aug 8): MCOM Holdings Bhd (KL:MCOM) has been reprimanded by Bursa Malaysia for failing to issue its audited accounts more than nine months past its deadline.
The digital marketing firm breached Rule 6.13 of the LEAP Market listing requirements after missing its Oct 31, 2024 submission date to issue audited financial statements for the 18-month financial period ended June 30, 2024, according to a statement from the exchange.
“Bursa Malaysia views the breach seriously as timely submission of financial statements is a fundamental obligation and of paramount importance in ensuring an orderly and fair market…and necessary to aid informed investment decisions,” said the exchange which also acts as the regulator.
A company listed on the LEAP Market, in which trading is available only to sophisticated investors, must announce its annual audited financial statements together with the auditors’ and directors’ reports within four months from its financial year end.
MCOM has yet to issue the overdue statements and reports to date. Bursa has decided to defer a de-listing procedure and gave the company a new deadline of Aug 31, 2025 after taking into consideration that the company had appointed a new auditor on May 21.
The delay
Bursa took note that the delay at MCOM stemmed mainly from a shortage of experienced accounting personnel due to high staff turnover, and the resignation of the company’s external auditors on Oct 29, 2024 over unpaid audit fees.
However, the regulator stressed that such reasons do not justify the non-compliance, as listed companies are required to maintain adequate resources, including competent finance staff, and to ensure timely preparation of financial statements.
MCOM had also failed to show it made “reasonable efforts” including to pay the outstanding audit fees to the external auditors to allow the audit to begin and the financial statements to be issued on time.
As part of the public reprimand, MCOM was also ordered to review the adequacy and competency of the company’s finance and accounting resources and adequacy, comprehensiveness, implementation and effectiveness of the company’s policies and procedures for financial reporting.
Bursa also reminded MCOM and its board of directors of “their responsibilities to maintain the appropriate standards of corporate responsibility and accountability to its shareholders and the investing public”.