Solartron Plc (SOLAR) says its double-error corrections in its financial statements for the January-to-March quarter have resulted in a much smaller net loss in quarterly earnings.
"Usually, the company would calculate the comparison between the foreign exchange trading contracts and the period-end exchange rates by the Bank of Thailand. However, the review found errors in the calculation of the period in the year 2015, which as a result caused a loss on foreign exchange contracts in the year of 2015," the company said in a filing to the Stock Exchange of Thailand (SET) yesterday.
Kesara: Investors should be cautious
"It was recorded lower by 25.81 million baht, causing the expenses and loss on foreign exchange contracts in the financial statements of the first quarter of this year to increase by 25.81 million baht."
The company said its audit committee detected the fault and inquired about the significant increase in administrative expenses, including foreign exchange expenses, to 55.65 million baht for the three months to March this year from 23.79 million in the same period last year.
The explanation came after an SET request and Solartron on May 16 revised its consolidated net loss in the first quarter this year to a mere 260,000 baht from a net loss of 26.6 million baht stated in the previous financial results released on May 13.
To prevent repeating such a mistake, the company said it will increase the number of related staff to check the financial statement arrangement process before release and review calculations more frequently.
Apart from the errors in financial statements, there were interesting movements at Solartron. Yanyong Thammatucharee resigned as a director only one day after the company's board meeting to verify the financial statements.
"Media and investors are interested in this stock. Investment in the stock needs cautious decision-making," SET president Kesara Manchusree warned.
Solartron has the largest solar cell production capacity in Southeast Asia and has been operating for nearly 30 years.
SOLAR shares closed at 8.10 baht on May 13 and sank to the 30% daily floor on May 16 to 5.70. The stock closed at 4.62 baht yesterday, up 34 satang, in trade worth 865 million baht.