Bursa Malaysia Securities Berhad (Bursa Malaysia Securities) has publicly reprimanded SAAG Consolidated (M) Berhad (In Liquidation) (SAAG) and its directors for breaching the Bursa Malaysia Securities Main Market Listing Requirements (Main LR). In addition, five directors of SAAG were fined a total of RM175,000.
SAAG was publicly reprimanded for breach of paragraph 9.16(1)(a) of the Main LR in respect of the Company’s fourth quarterly report for the financial year ended 31 December 2010 (“4th QR 2010”) announced on 28 February 2011 which was not factual, unclear, ambiguous, inaccurate, not succinct and did not contain sufficient information to enable investors to make an informed investment decision. In this respect, the 4th QR 2010 did not / failed to:-
(a) provide for the following:-
- written down of RM18.119 million on the amount due from contract customer for the power plant project in respect of the costs of six (6) generator sets;
- written down of RM6.315 million on the work-over rig categorised as inventories; and
- impairment loss of RM1.774 million on a work-over rig categorised as property, plant and equipment,
OR
(b) disclose the pending valuation reports on the work-over rigs and generator sets which were necessary to ascertain the impairment assessment and might impact the results and financial position of SAAG.
Notwithstanding that SAAG had been de-listed on 9 September 2013, the breaches were committed while SAAG was listed on the Official List of Bursa Securities.
The following directors of SAAG at the material time were found to have breached paragraph 16.13(b) of the Main LR for permitting knowingly, or where they had reasonable means of obtaining such knowledge, SAAG to commit the above breach. The penalties imposed are as follows:
| No. | Name | Penalties |
|---|---|---|
| 1. | Dato’ Abu Bakar Bin Abdul Hamid Non-Executive Chairman Audit Committee Chairman |
Public Reprimand and fine of RM25,000 |
| 2. | Anand Subramanian Executive Director Chief Executive Officer |
Public Reprimand and fine of RM50,000 |
| 3. | Loganathan a/l K. Ramanujam Managing Director |
Public Reprimand and fine of RM50,000 |
| 4. | Tengku Daud Shaifuddin Bin Tengku Zainudin Executive Director |
Public Reprimand and fine of RM25,000 |
| 5. | Makhtar Bin Mohamed Independent Non-Executive Director Audit Committee Member |
Public Reprimand and fine of RM25,000 |
Bursa Malaysia Securities views the contravention seriously as the requirement for listed companies to submit financial statements that are factual, clear, unambiguous, accurate, succinct and contained sufficient information to enable investors to make informed investment decisions is of paramount importance in ensuring the integrity and reliability of financial statements and a fair and orderly market for securities that are traded on Bursa Securities.
