Ikhmas’ audited FY17 profit 51.5% lower than reported earlier

KUALA LUMPUR (April 27): Engineering and construction group Ikhmas Jaya Group Bhd’s audited results for its financial year ended Dec 31, 2017 (AFS 2017) have a variance of RM7.4 million or 51.5% from the amount announced on Feb 28, 2018 in its unaudited fourth-quarter results ended Dec 31, 2017 (4QFY17).

In a filing with Bursa Malaysia yesterday, Ikhmas said the profit attributable to owners of the company was only RM6.9 million in AFS 2017, as opposed to the RM14.3 million reported earlier.

“The major cause of the variance in profit attributable to owners of Ikhmas Jaya between 4QFY17 and AFS 2017 was mainly due to the consolidation adjustment made for the capitalisation of depreciation charge on plant and machinery into the project costs,” it added.

The depreciation amount eligible for capitalisation was revised and a consolidation entry superseding the initial entry was recorded, it added. However, the initial entry was inadvertently omitted in its 4QFY17’s reported results.

Ikhmas’s share price fell one sen or 2.63% to close at 37 sen yesterday, giving it a market capitalisation of RM202 million.

This article first appeared in The Edge Financial Daily, on April 27, 2018.

For more stories, download EdgeProp.my pullout here for free.