Kenyataan Media
BURSA MALAYSIA SECURITIES PUBLICLY REPRIMANDS TH HEAVY ENGINEERING BERHAD FOR BREACH OF MAIN MARKET LISTING REQUIREMENTS
Bursa Malaysia Securities Berhad (635998-W) (Bursa Malaysia Securities) has publicly reprimanded TH Heavy Engineering Berhad (THHEAVY) for failing to ensure that the company’s announcement dated 28 February 2014 on the fourth quarterly report for the financial year ended (FYE) 31 December 2013 (4th QR 2013) took into account the adjustments which were made in the annual audited accounts for the FYE 31 December 2013 (AAA 2013) announced on 30 April 2014.
The failure to take into account the adjustments was in contravention of Paragraph 9.16(1)(a) of the Bursa Malaysia Securities Main Market Listing Requirements (Main LR) where a listed issuer must ensure that each announcement made is factual, clear, unambiguous, accurate, succinct and contains sufficient information to enable investors to make informed investment decisions.
The public reprimand was imposed pursuant to Paragraph 16.19(1) of the Main LR after taking into consideration all facts and circumstances of the matter and upon completion of due process.
THHEAVY is also required to review and ensure the adequacy and effectiveness of its financial reporting function and carry out a limited review on its quarterly report submissions. The limited review must be performed by the Company’s external auditors for four quarterly reports commencing no later from the quarterly report for the financial period ended 31 December 2014. In addition, THHEAVY must ensure all its directors and relevant personnel attend a training programme on compliance with the Main LR pertaining to financial statements.
While Bursa Malaysia Securities has not found any of THHEAVY’s directors to have caused or permitted the breach by THHEAVY, Bursa Malaysia Securities wishes to highlight that it is the duty of the directors to maintain appropriate standards of responsibility and accountability in ensuring compliance of the Main LR. The Board of Directors at the material time were as follows:
(i) Datuk Azizan bin Abd Rahman
(ii) Nor Badli Munawir bin Mohamad Alias Lafti
(iii) Too Kok Leng
(iv) Roslan Bin Mohd Latif
(v) Dato’ Mohamad Norza Bin Haji Zakaria
(vi) Dato’ Md. Yusop Bin Omar
(vii) Dr. Samad bin Solbai
(viii) Nusral Bin Danir
Bursa Malaysia Securities views the contravention seriously and has reminded THHEAVY and its Board of Directors of their obligation to uphold appropriate standards of responsibility and accountability to shareholders and the investing public.
BACKGROUND
THHEAVY reported an unaudited profit after taxation and minority interest of RM1.603 million in the 4th QR 2013, compared to an audited profit after taxation and minority interest of RM8.188 million in the AAA 2013. The variance of RM6.585 million between the unaudited and audited results represented a deviation of 410.8 %.
The adjustments as announced on 30 May 2014 were mainly due to the company’s errors and oversight. THHEAVY had failed to account for the share of profit from an associate and wrongly categorised the 30% share of losses of non-controlling interests in a subsidiary to the owners of the company in the 4th QR 2013.