(Reuters) - Medical device maker Uroplasty Inc said it placed Chief Financial Officer Mahedi Jiwani on administrative leave pending a review of internal financial controls, and would delay filing its annual report for the year ended March 31.
Shares of the company were down about 20 percent at $1.98 in thin trading before the bell.
The company said an initial review of employee expense reimbursements at the end of the fiscal year showed “limited issues” related to internal controls.
Uroplasty, which sells devices to treat loss of bladder control, later discovered issues related to the recognition of orders and payment of sales commissions - warranting a further review.
“The review is being conducted at the direction of the audit committee of the board of directors of the company, with the assistance of independent advisors,” Uroplasty said in a statement.
The Minnetonka, Minnesota-based company said it is unable to fully assess the potential impact on its financial statements as the review of internal control issues has not been completed.
Mahedi Jiwani has been Uroplasty’s chief financial officer since November 2005, according to Thomson Reuters data.
Reporting by Pallavi Ail in Bangalore; Editing by Roshni Menon