Posted on 23 Oct 2015
Bursa Malaysia said Perwaja was in contravention of paragraph 9.16(1)(a) of Main Market Listing Requirements (LR), which states that 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 including the impact on Perwaja’s share price movement and volume traded after announcement of the QR June 2014 and the company’s audited financial statements/adjustments and upon completion of due process,” it said.
In a filing with Bursa Malaysia yesterday, Perwaja said it 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 Dec 31, 2015.
In addition, Perwaja must ensure all its directors and relevant personnel attend a training programme in relation to compliance with the Main LR pertaining to financial statements.
“While Bursa Malaysia Securities has not found any of Perwaja’s directors to have caused or permitted the breach by the company, Bursa Malaysia Securities wishes to highlight and remind 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 of Perwaja at the material time were Datuk Ong Tee Thong, Tan Sri Pheng Yin Huah, Datuk Henry Pheng Chin Guan, Datuk Seri Mohd Fauzi Yon, Datuk Md Sharif Shamsuddin, Pheng Chin Huat, Pheng Chin Shiun, Shamsudin@Samad Kassim, Chieng Ing Mui and Lim Chew Yin.
To recap, Perwaja had reported an unaudited loss after taxation and minority interest of RM921.62 million in its QR June 2014 announced on Aug 29, 2014 as compared with an audited loss after taxation and minority interest of RM1.22 billion in the audited financial statements announced on Nov 7, 2014. The difference of RM295.85 million between the unaudited and audited results represented a variance of 32%.
The main adjustment was in respect of impairment of plant and machinery of RM233.57 million where despite request by the external auditors since May 28, 2014, Perwaja had failed to undertake an impairment assessment including taking reasonable steps to appoint and expedite completion of the independent valuation report for impairment assessment prior to the submission of the QR June 2014.
The explanation that the adjustment was made upon receipt of the valuation letter dated Nov 6, 2014 was not acceptable.
