KUALA LUMPUR (Nov 24): Bursa Malaysia Securities has publicly reprimanded the information technology (IT) developer FSBM Holdings Bhd (KL:FBSM) board of directors for failing to ensure its third and fourth quarterly reports for financial year 2024 were accurate.

FSBM initially reported a fourth-quarter financial year 2024 net loss of RM257,000 but its annual audited report later showed a profit of RM995,000, a difference of RM1.25 million (487.2%).

Similarly, its 3QFY2024’s loss of RM221,000 was revised to a profit of RM1.053 million, a difference of RM1.27 million (576%).

In a statement on the reprimand, Bursa Malaysia Securities said a listed company must make public announcements that are accurate, clear, concise and provide enough information for investors to make informed decisions.

It has ordered FSBM to have its external auditors conduct a limited review of its quarterly reports for four periods, starting with the quarter ending Dec 31, 2025.

FSBM must also assess the adequacy and effectiveness of its financial reporting function.

While Bursa Malaysia Securities found no directors personally responsible for the breach, it emphasised that directors must ensure proper accountability and compliance. 

The regulator stressed that accurate, clear and complete financial statements are essential for investor decision-making and maintaining a fair and orderly market.

FSBM announced on April 30, 2025, that the differences in its quarterly results were due to incorrect accounting of profit after tax (PAT) between owners and non-controlling interests (NCI). RM1.3 million of PAT was wrongly attributed to NCI while the 4QFY2024 loss of RM257,000 was attributed to owners.

The error was linked to intra-group transactions with subsidiaries sold on July 23, 2024. An intra-group waiver of amounts owed by the sold subsidiaries should have been treated as a capital contribution, not part of NCI’s PAT.

As a result, the 3QFY2024 loss of RM221,000 was also incorrect and should be revised to a profit of RM1,053,000, a difference of RM1.274 million (576%) from the originally reported figure.

On Monday's closing bell, FSBM closed down 1.5 sen or 8.33% at 16.5 sen, valuing the group at RM85 million.