The Adelaide-headquartered company told the ASX today it had called in forensic accountants from KPMG to look into “financial discrepancies which relate to transactions under which a small number of customers may have underpaid for product supplied to them”.
The company says the underpayments may adversely affect 2016/17 earnings by up to $14 million, less any amounts recovered.
“While the investigation is still in process, based on the information currently available, it appears that there may have been deliberately hidden underpayments by customers over a sustained period, which may have a negative impact on FY17 EBIT currently estimated to be up to $14 million, less the impact of any recoveries which may be made,” the company said.
The discrepancies were identified through Adelaide Brighton’s compliance and risk management systems.
“The company is strengthening these further in the light of this matter,” its statement says. “The company has reported this matter to its auditors and will cooperate with relevant authorities as appropriate as the investigation proceeds.”
InDaily asked Adelaide Brighton whether the matter had been referred to Police or any other authorities.
The company responded that forensic investigators were working with the company to “investigate the matter fully”.
“Until that investigation is complete it would be inappropriate for Adelaide Brighton to make any further comment on the matter,” a spokesperson said.
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