The Stock Exchange of Thailand (SET) plans to assign the "C" (caution) sign to shares of Stark Corporation today after the Securities and Exchange Commission (SEC) ordered the company to clarify its financial data within seven days.
The SET said on its website on Thursday the C sign will be posted on Stark shares today because "the SEC has notified the company to arrange a special audit".
Securities with a caution sign must be purchased from a cash balance account and each SET member must ensure its customers pay the full amount in cash prior to trading for as long as a C sign is posted, according to the SET statement.
On Wednesday the SEC ordered Stark to clarify facts and progress regarding various operations, including arranging a special audit, especially for sales, accounts receivable and other related accounts, and money transfers among its group of companies.
The explanation must be submitted within seven days from May 17.
Stark, a wire and cable manufacturer, failed to submit financial statements for 2022 within the time required by law. The SEC was later informed that Stark's auditor detected a transaction that may be unusual, according to the SET statement.
Stark is asking experts to investigate as there were doubts about the accuracy of its consolidated financial statements, which may affect the rights of securities holders or their investment decisions, said the SEC statement.
"The scope of the special audit may be insufficient to draw conclusions about the impact of the accuracy of Stark's consolidated financial statements, or regarding potentially improper transactions," the SEC noted.
The SEC ordered Stark to submit the results of the special audit to the regulator within 30 days and disclose the information through the SET public information system, the statement added.
On Tuesday, the SET posted an SP (suspension) sign on Stark shares, given its failure to submit financial statements for 2022 and the first quarter of this year within the deadline.
