JOHANNESBURG - Rolfes Holdings yesterday hit back at the JSE after the exchange publicly censured the chemicals group on the stock exchange news service for material errors in its previous financial statements.
The JSE had said that Rolfes annual financial statements for the years ended June 30, 2015 and 2016 contained material errors, which were restated in the firms’s annual financial statements for the year ended June 30, 2017.
Errors included overstatement of property, plant and equipment; the overstatement of inventories as well as the understatement of interest-bearing loans.
Rolfes, valued at R450million, took issue and said: “The company strongly disagrees that the censure is appropriate.” It said that the company subsequently became aware that the 2015 and 2016 reported results did not comply with IFRS and the JSE listings requirements.
When the errors and issues were identified in 2017, Rolfes notified the JSE, restated the previous results in the 2017 financial statements and replaced its chief executive and chief financial officer.
“It is clear that the company acted decisively and appropriately, and the points raised in the censure are precisely what the company itself had notified to the JSE.” Richard Buttle was appointed chief executive in October 2017, replacing Lizette Lynch who resigned following the accounting errors.