THE chief executive officer of metal component manufacturer Miyoshi, Andrew Sin Kwong Wah, has been charged over the company’s failure to comply with Section 201(5) of the Companies Act.
In a bourse filing on Tuesday (May 14), the company said that, as an executive director of the company, Sin oversaw the release of the financial statement for the financial year ended Aug 31, 2019, which failed to recognise an impairment loss for the company’s equity investment in its foreign associate, Core Power (Fujian) New Energy Automobile.
Sin has received a summons to be in court on Jun 5. The company said it is not aware of any other conditions or restrictions imposed on him by the Accounting and Corporate Regulatory Board (Acra).
Acra, as part of its financial reporting surveillance programme, had in September 2021 selected Miyoshi’s audited financial statements for the year ended Aug 31, 2020 for review. In September 2022, Acra issued a letter with its preliminary assessment that the group should have impaired its investment in Core Power as at Aug 31, 2019.
The company said it responded to Acra in October 2022, offering its views and explanations, but that it has not received a final assessment from the authority. It added that it impaired its investment in Core Power in FY2020, and that there has been no impact on the group’s audited financial statements from that financial year on.
Miyoshi’s nominating committee and board noted that compliance with accounting standards has, since February 2022, been the responsibility of the company’s financial controller. It added that it received an unqualified opinion from its current independent auditor for the group’s audited financial statements for FY2023.
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Trading in the shares of Miyoshi were suspended on Tuesday, before the announcement was made.
