FMA warns NZX-listed Enprise over its accounting records

In an August 11 letter, the financial watchdog considered that Enprise had breached the Financial Markets Authority Act and the Financial Markets Conduct Act. Photo / 123RF

The Financial Markets Authority has warned New Zealand stock exchange-listed Enprise Group for failing to keep proper accounting records.

In an August 11 letter, the financial watchdog considered that Enprise had breached the Financial Markets Authority Act and the Financial Markets Conduct Act.

Enprise had failed to provide the Financial Markets Authority (FMA) with sufficient evidence to support disclosures and assumptions used to prepare its June 30 2022 financial statement. The breach was related to Enprise’s Australian subsidiary, Kilimanjaro Consulting, and certain tax-related assets.

Enprise describes itself as a high-tech software and services investment company on its website. It has two operating divisions, one of which is Kilimanjaro Consulting. The other is iSell, a seller of cloud-based quoting systems. In October last year, the company’s auditors told the FMA it couldn’t find enough evidence to support certain issues.

The FMA said its decision to publish the warning followed a history of inquiries into Enprise’s financial reporting practices between 2015-2019. The FMA’s director of markets, investors and reporting, John Horner, said: “The FMA considers this warning to be an appropriate regulatory response to a failure to keep proper accounting records.”

The FMA acknowledged that Enprise had taken positive steps to improve its financial reporting functions in recent months.

Enprise responded in a statement that it was “disappointed and remorseful” that the FMA had reached that conclusion and accepted the FMA’s decision to issue a warning.

“We are taking up FMA’s offer to discuss how Enprise can further improve its practices.”